Steps in the Define phase
– The first phase of a six sigma project is the define phase. Let’s start with a couple of questions that may be on your mind. Why even have the define phase? What does it accomplish? As the name implies this phase defines the project, what the project’s all about, what it has to accomplish by when and by whom. The first step is to define the problem and goal statements. What specific problem or improvement opportunity is the project addressing? What is the goal of this project? In other words, what measurable performance outcome or target must the project accomplish, and by when? It defines the Y, as in what is the Y in Y is a function of X. Where Y is the performance measure to be improved. The second step is to develop the project charter. The project charter is a document that describes the project. It includes problem and goal statements, project scope, expected operational and financial impact, names of the project team and other key players, and milestones. The project charter serves as an internal contract between senior management and the project team. It provides a common understanding on the purpose and focus of the project. Once the charter is completed, champion will review and approve it. The third step is to develop a high level process overview map called a SIPOC diagram. SIPOC, is an acronym for Supplier, Input, Process, Output, Customer. The SIPOC diagram identifies and illustrates at a high level processes relevant to the project. Inputs and outputs involved. Those who supply the process inputs, and those that receive those product outputs as customers. The SIPOC diagram is a useful scoping tool showing what processes are within the scope of the project and the stakeholders involved. In summary, these are the steps in the define phase. Develop problem and goal statements, develop project charter, and develop SIPOC diagram. As we move through this chapter, we’ll address each of these steps to help you understand the define phase, it’s purpose, the steps involved, and why this phase is important. Executing the define phase correctly will help you provide clear direction and focus to the project team. The team will know what a specific problem is, the goal to be accomplished by when and by whom, what’s in scope and what’s out of scope. This way the project is focused for success.
Problem and goal statements
– To quote the famous American inventor, Charles Kettering, “A problem well stated is a problem half-solved.” The importance of problem definition cannot be emphasized enough. In this movie, I’ll explain how to develop effective problem and goal statements for a Six Sigma project. The problem statement describes the opportunity or problems to be addressed by the Six Sigma project. The opportunity or problem should not be a one-time occurrence, not a one-off problem that occurs sporadically. It should be a recurring, chronic problem. The problem or opportunity should be specific and measurable. For example, it is specific to a process, product, or service and it is specific to a type of defect or performance deficiency. It should be measurable to indicate a size and impact of the problem in operational and financial terms. The opportunity or problem should be relevant and significant to the organization. Otherwise, why bother? Here’s an example of a problem statement. “Over the past 12 months, First Call Resolution “at our IT Help Desk is only 60%. “This is below the 75% required “in our service level agreement” or SLA. “Failure to meet this requirement will result “in a loss of $200,000 in penalties, “not to mention customer dissatisfaction, “nonrenewals, and the potential loss of clients.” The opportunity or problem is a recurring, chronic problem stated in specific and measurable terms and it is relevant and significant. The problem statement is very compelling. It makes you want to address it immediately. The purpose of the goal statement is to establish the target result to be achieved and by when. To do this effectively, the goal statement should be SMART, S-M-A-R-T. It is an acronym for Specific, Measurable, Attainable, Relevant, and Time-bound. S, specific as to what needs to be improved. M, measurable as to how much improvement to achieve. A, attainable that a target result is realistic and achievable. R, relevant to the success of the business or organization. T, time-bound, the time-frame to get it done. In our example, the goal statement is “Improve First Call Resolution rate to 75% or higher, “while ensuring customer satisfaction, “within the next four months.” As you can see, the goal statement is SMART. Specific to improving First Call Resolution rate. Measurable at 75% or more. It is an attainable and reasonable goal. It is relevant to the success of the business, since that is the level required in the service level agreements. It is time-bound, as the goal must be achieved within four months. Let’s show the problem and goal statements together. When the problem and goal statements are stated correctly, you and your project team benefit. Both statements show a compelling problem that needs to be addressed, how much needs to be improved, and by when. To summarize, the opportunity or problem is recurring, chronic, specific, measurable, relevant, and significant. The goal must be smart, specific, measurable, attainable, relevant, and time-bound. When you learn how to develop effective problem and goal statements, you benefit because they compel you to act decisively with direction and focus as to what needs to be improved and why, by how much, and by when.
Complete the project charter
– How often have you gone to a meeting where nobody knows its purpose or what must be accomplished by the end of the meeting? A meeting agenda would’ve solved that. Similarly, a Six Sigma project needs a Project Charter. In this movie, I’ll explain how to complete a Project Charter for a Six Sigma project. The Project Charter is a document that provides direction and focus to the project team. It is management’s authorization for the project, spelling out purpose, goals, scope of work, and assignment of resources to the project. In short, it provides legitimacy to the project’s existence. While there may be variations as to how much is included in Project Charters, here are the key elements of a Project Charter. Project name. Give the project a name for easy identification. Opportunity or problem statements. Describe the opportunity or problem to be addressed. Remember, it should be a specific, recurring problem that is measurable, relevant, and significant to the organization. Goal statement. State the goal or target result to achieve and by when. The goal statement should improve what was described in the problem statement. The goal should be SMART, specific, measurable, attainable, relevant, and time-bound. Key metric. State the metric or performance measure to be improved. This is the y in y is a function of x. Expected benefits. State the expected operational and financial benefits. Speak the language of management in order to get priority, and the language of management is money. Project scope. State what’s in scope, and equally important, what’s out of scope. This provides project boundaries and helps prevent scope creep. Milestones. List the checkpoint dates for project progress. The completion dates of each phase of DMAIC are usually good milestones. Signatures. Typically there are three signatures, project leader, someone from finance, and the champion. The project leader agrees to take on the project, the finance person validates the expected financial benefits, and the champion approves the launch of the project. So, those are the key elements of the Project Charter. Put all of those together, and you have a clear mandate to execute the project.
How to use SIPOC diagrams
– Wouldn’t it be nice if you had something that provides an overall view of any process, what’s involved and who’s involved? There is such a thing. It’s called a SIPOC Diagram, spelled S-I-P-O-C. SIPOC is an acronym for supplier, input, process, output, customer. The purpose of the SIPOC Diagram is to help the Six Sigma project team document and communicate the overall scope of the processes related to the project, on one page. Useful features of the SIPOC are the high-level bird’s-eye view of the process, its inputs and outputs, and a list of the suppliers and customers. In other words, the stakeholders of the project. The SIPOC Diagram has five columns, with headings of Supplier, Input, Process, Output and Customer. Start with the middle column, the P, or Process column. Starting at the top of this column, major steps of the process relevant to the project are drawn as rectangular boxes in sequential order, top down. The process is usually documented as three to six major steps. For example, for a pizza delivery restaurant, the major steps are take order, prepare pizza, bake, box and deliver to customers. In the Supply column, list the people, departments, or companies who supply the process. The term supplier is not limited to outside vendors. Suppliers can be any person or department upstream, who provides inputs to the process, in the P column. Suppliers to the pizza restaurant include the flour manufacturer, food processing companies that provide ingredients, and even the customers who call in to place orders. Next, in the Input column, list the inputs that go into the process to be transformed. Inputs can be materials, people, items, information or data. For the pizza restaurant, it is flour, water, and other ingredients, as well as the order information provided by customers. The Process column has been completed. Next, in the Output column, list the outputs produced by the process. An output can be completed forms, issued checks, product or a pizza. Finally, in the Customer column, list the people, departments or companies who receive what the process produces. The term customer is not limited to customers of the company. It can also include people or departments downstream, who receive what the process produced. For the pizza restaurant, it’s home delivery and carryout customers. Here’s a completed SIPOC Diagram for a pizza restaurant. That’s how to develop a SIPOC Diagram. Once it is completed, you can benefit from knowing and communicating the scope of the process, what’s involved and who’s involved. You also benefit from knowing which stakeholders to engage during the Six Sigma project.