1. 1 Chapter 3 Project Organization, Selection, and Definition

2. Six Sigma Project Teams Champions - senior-level managers who promote and lead Six Sigma deployment Champions - senior-level managers who promote and lead Six Sigma deployment Master Black Belts – Full-time Six Sigma experts Master Black Belts – Full-time Six Sigma experts Black Belts – Six Sigma technical analysts Black Belts – Six Sigma technical analysts Green Belts – Functional employees who work on projects on a part-time basis Green Belts – Functional employees who work on projects on a part-time basis Team Members – Individuals from functional areas who support specific projects Team Members – Individuals from functional areas who support specific projects

3. People Skills Technical skills Technical skills Soft skills Soft skills –Shared vision –Behavioral skills

4. Skills for Team Leaders Conflict management and resolution Conflict management and resolution Team management Team management Leadership skills Leadership skills Decision making Decision making Communication Communication Negotiation Negotiation Cross-cultural training Cross-cultural training

5. Skills for Team Members Communication Communication Meetings Meetings Shared decision making Shared decision making

6. Team Dynamics Team life cycle Team life cycle –Forming –Storming –Norming –Performing –Adjourning

7. 7 Ingredients for Successful Teams (1 of 2 ) Clarity in team goals Clarity in team goals Improvement plan Improvement plan Clearly defined roles Clearly defined roles Clear communication Clear communication Beneficial team behaviors Beneficial team behaviors

8. 8 Ingredients for Successful Teams (2 of 2) Well-defined decision procedures Well-defined decision procedures Balanced participation Balanced participation Established ground rules Established ground rules Awareness of group process Awareness of group process Use of scientific approach Use of scientific approach

9. Problems and Opportunities for Six Sigma Projects High costs High costs Excessive defects Excessive defects Customer complaints Customer complaints Low customer satisfaction Low customer satisfaction

10. Six Sigma Problem Types 1. 1. Conformance problems 2. 2. Unstructured performance problems 3. 3. Efficiency problems 4. 4. Product design problems 5. 5. Process design problems

11. The Cost of Quality (COQ) COQ – the cost of avoiding poor quality, or incurred as a result of poor quality COQ – the cost of avoiding poor quality, or incurred as a result of poor quality Translates defects, errors, etc. into the “language of management” – $$$ Translates defects, errors, etc. into the “language of management” – $$$ Provides a basis for identifying improvement opportunities and success of improvement programs Provides a basis for identifying improvement opportunities and success of improvement programs

12. 12 Quality Cost Classification Prevention Prevention Appraisal Appraisal Internal failure Internal failure External failure External failure

13. COQ in Services In manufacturing, quality costs are primarily product-oriented; for services, however, they are generally labor- dependent, with labor often accounting for up to 75 percent of total costs.

14. 14 COQ Analysis Tools Cost indexes Cost indexes Pareto analysis Pareto analysis Sampling and work measurement Sampling and work measurement Activity-based costing Activity-based costing

15. Process Definition Define the process: its start, end, and what it does using a high-level process map Define the process: its start, end, and what it does using a high-level process map Describe the process: key tasks and sequence, people, equipment, methods, materials Describe the process: key tasks and sequence, people, equipment, methods, materials Describe the players: customers, suppliers, process operators Describe the players: customers, suppliers, process operators Define customer expectations: what the customer wants, when, and where Define customer expectations: what the customer wants, when, and where Determine what data are available or need be collected Determine what data are available or need be collected Describe the perceived problems Describe the perceived problems

16. Project Definition Formal mission statement (charter) that defines the project, its objectives, and deliverables. Formal mission statement (charter) that defines the project, its objectives, and deliverables. High-level process map (SIPOC) High-level process map (SIPOC) Customer requirements Customer requirements

17. SIPOC Diagrams SIPOC - Suppliers, Inputs, Process, Outputs, and Customers SIPOC - Suppliers, Inputs, Process, Outputs, and Customers Provides a broad view of a process and who is the process owner, how inputs are acquired, who the process serves, and how it adds value Provides a broad view of a process and who is the process owner, how inputs are acquired, who the process serves, and how it adds value Inputs Process Outputs SuppliersCustomers

18. Identifying CTQs - Goods Product characteristics Product characteristics –Performance –Features –Reliability –Conformance –Durability –Serviceability –Aesthetics

19. Identifying CTQs - Services Reliability Reliability Assurance Assurance Tangibles Tangibles Empathy Empathy Responsiveness Responsiveness

20. Project Review – Define (1 of 2) The team has reached agreement on and has clearly defined the problem or opportunity to address The team has reached agreement on and has clearly defined the problem or opportunity to address The project charter is developed and agreed upon The project charter is developed and agreed upon The team understands the strategic and financial impact of the project The team understands the strategic and financial impact of the project The team agrees that the project can be completed successfully The team agrees that the project can be completed successfully A project plan and timeline have been developed to guide the entire Six Sigma project A project plan and timeline have been developed to guide the entire Six Sigma project The right mix of people are on the team The right mix of people are on the team

21. Project Review – Define (2 of 2) Key stakeholders outside of the team have been identified Key stakeholders outside of the team have been identified All team members have consistent expectations All team members have consistent expectations Team members have received any necessary “just- in-time” training Team members have received any necessary “just- in-time” training Appropriate resources – financial and human – have been committed to conduct the project Appropriate resources – financial and human – have been committed to conduct the project The voice of the customer and CTQs are fully understood and documented The voice of the customer and CTQs are fully understood and documented The team has developed a high-level process map. The team has developed a high-level process map. Key performance measures have been identified for measuring success of the project Key performance measures have been identified for measuring success of the project