1. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure

2. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 1 Learning Objectives By the end of this module participant will be aware of the necessary activities involved in closing out a project: Process Owner education and buy-in Controls (develop a plan to sustain project results) Finance Leveraging Recording the project Celebration and recognition Actual Close Out procedures Close Out meeting with Process Owner

3. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 2 The Process Owner And Team To successfully close a project, the Process Owner and his/her team must understand and accept the control plan -Improvements are defined -The controls are reviewed and accepted Any audits are discussed (scope and schedule) -All questions are resolved -Training is discussed, including ongoing training Obtain firm commitment from Process Owner(s) that they accept the project closure, its results, and its controls.

4. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 3 Transitioning A Project–Step 1 Ensure project is complete enough to transition All Breakthrough Strategy elements known Major Breakthrough Strategy elements complete No loose ends Actions items captured

5. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 4 Transitioning A Project–Step 2 Plan early in process Identify team members at start of project Secure stakeholder support Develop Process Owner buy in Create team charter Communicate regularly Reinforce that this is a team, not an individual effort

6. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 5 Transitioning A Project–Step 3 Display progress during all phases Pareto charts Control charts Progress metrics Financial metrics (if appropriate) Reinforce Breakthrough Strategy phases No surprises Measurements Drive Behavior

7. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 6 Transitioning A Project–Step 4 Hold regular updates Different scopes for different areas Assure concerns are being considered Publish decisions as they are made Enforce the Breakthrough Strategy methodology Defeat rumors

8. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 7 Transitioning A Project–Step 5 Nurture team and area involvement Data collection Brainstorming Tests and experiments Data analysis

9. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 8 Transitioning A Project–Step 6 Create buy-in from all levels Schedule leadership round tables Integrate finance operation early Integrate quality operation early Include product planning Develop regular communication plan -Formal -Informal

10. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 9 Project Action Plan A project action plan assures that improvement items not finished are completed The Project Action Plan is a documented contract listing: -What is left to be done -Who is responsible to do it -When it is to be finished Monitored by the Process Owner and Black Belt Process Owner actually owns the tasks, but the Black Belt is responsible for auditing to assure the project is completely closed NOTE: No project should be closed if: 1.An improvement has not been made/benefits not yet accruing 2.There is no current control

11. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 10 Project Action Plan Project Action Plan.xls

12. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 11 Controls The Control phase is one of the hardest tasks in completing a project It is usually easier to find and fix a problem than it is to develop an acceptable method to control the future behavior of the organization Do not close a project until you have developed and implemented sufficient controls to assure longevity -Controls need to be understood and accepted by the user community Should consume over 20% of the total project time line You have spent three to six months of your life working to resolve an issue of significant importance to a customer, take the time to assure that the benefits truly accrue.

13. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 12 Guidelines For Sustaining The Gains Control plan created and “LIVE” -Train all involved with plans to keep training current -Sampling plan and measurement system for monitoring established -Audit plan developed and implemented -Reaction plans created if appropriate Permanent change built into daily routine Responsibilities must be integrated into job descriptions

14. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 13 Aspects Of Control SPC Amount of Effort Poka - Yoke (Mistake Proofing) DFSS Verbal Instructions Operational Method Sheets (OMS) Written Instructions Amount of Control

15. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 14 Finance Make sure that the financial guidelines of the organization are followed in calculating and accruing the savings -Review with Finance early on in the project so that the data required can be assembled (Project Charter) -Schedule a review with Finance before final closure so there is time to do a final analysis -Obtain Finance certified values (hard and soft dollars) as well as documented Finance sign off prior to project closure

16. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 15 Leveraging “I prefer not to learn from my mistakes…I prefer to learn from someone else’s mistakes” Prevents Duplication of effort Different solutions to similar issues Increased time to solve similar issues Names need to be attached to areas that may benefit and these people should be proactively informed of the potential leverage. Entire Breakthrough community (Sponsors, Master Black Belts, Black Belts, Green Belts) responsible to aggressively leverage projects.

17. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 16 Why use the tool: Purpose Understand how the project’s results may be used elsewhere Helps categorize the scope of use Communicate opportunities to others Importance Helps to maximize the project’s return on investment Enhances standardization potential Results Simple tool to help decide who you might engage to increase to gain a broader value of the process Examine usage opportunities both “deep” and “wide” Leveraging Project Results Look Across Chart

18. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 17 Look Across Chart Template Process: Attribute/FacilitySite 1Site 2Site 3Site 4Site 5Site 6 A – Fix applicable, resources identified R – Fix applicable, resources not identified F – Fixed and FMEA updated O – Problem cannot/does not occur in this area X – Under investigation Reduce the number of days and labor hours to for the monthly/quarterly Accounting close.

19. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 18 Recording The Project Project Tracking plays an important part to the success of Breakthrough Strategy A comprehensive record of the project should include: -Clear evidence of the completion of each of the 12 steps -The tools used and the results -Links or references to attachments such as MINITAB files -A clearly defined improved state -Controls including description, scope, and assignment of the responsibility

20. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 19 Celebration The Black Belt Team has improved something of importance using advanced tools The improvement is based on data driven decisions with known risks There is high confidence that the results are real and lasting: So....

21. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 20 Recognition Success breeds success People who are part of teams that are successful are more willing to participate on future teams Personal efforts of the past months deserve recognition Have a “THANK YOU” meeting with the team People as well as projects appreciate closure.

22. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 21 Process Owner’s Need-to-Know A Process Owner should know: -What inputs need control and at what level(s)? -If inputs controlled at these levels what is the resulting output? -What mechanisms and/or signals indicate that the inputs are not being controlled at the desired levels? -What specific actions are taken if the inputs go out of control? -Who is responsible for what?

23. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 22 Close Out Meeting With Process Owner Process Owner, if not an active team member, should have been updated on progress on a regular basis (bi-monthly), such that there will be no surprises at the final close out meeting Attendance at the final close out meeting should include the: -Process Owner -Black Belt -Master Black Belt -Project Sponsor The Process Owner must sign off and take ownership of the team’s completed project work.

24. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 23 Close Out Meeting Checklist Project Charter – Includes the business case and final validation (estimated if final validation has yet to be determined) Capability study of the old process Capability study of the new process Control Plan that identifies what the critical inputs are and how they are to be controlled Review of any change in the Roles and Responsibilities if necessary Appendix of statistical work (Project Report Outs) to support any technical questions. KISS (Keep it simple silly)

25. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 24 Review Of Objectives The participant should now be aware of the necessary activities involved in closing out a project: Process Owner education and buy-in Controls (Formulate a plan to sustain project results) Finance Leveraging Recording the project Celebration Actual Close Out Procedures Close Out meeting with the Process Owner

26. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 25 Trademarks And Service Marks Trademarks of Six Sigma Academy: Breakthrough Design Breakthrough Software Design Breakthrough Diagnosis Breakthrough Execution Breakthrough Lean® Breakthrough Sigma Lean Breakthrough Six Sigma Breakthrough Strategy® Breakthrough Value Services® FASTART INTELLEQ METREQ WE WEAVE EXCELLENCE INTO THE FABRIC OF BUSINESS Six Sigma is a federally registered trademark of Motorola, Inc. SigmaFlow is a trademark of Compass Partners, Inc. MINITAB is a trademark of Minitab, Inc. VarTran is a trademark of Taylor Enterprises

27. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Project Closure Pg 26 Six Sigma Academy www.6-sigma.com US Tel: (480) 515-9501 US Fax: (480) 515-9507 International Tel: +44-1403-783456 International Fax: +44-1403-218788 8876 E. Pinnacle Peak Road, Suite 100 Scottsdale, AZ 85255