Six Sigma - Project Selection

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welcome to complexity made simple my

name is Paul Allen and the subject of

today's newsletter is how to select your

continuous improvement projects now this

could have been called how to select

your Six Sigma projects but I've said

continuous improvement projects really

because the methods I'm going to

describe aren't necessarily about Six

Sigma projects they could be but

actually all your projects should

probably be selected using one or all

three of these methods that I'm about to

destroy you so let's have a look at

yourself how to select how to select CI

projects now one of them is a Six Sigma

method one of them is a lien method one

of them is probably just maybe just

common sense but let's let's take a look

at the three methods that I'm gonna I'm

gonna recommend to you so the first one

it's probably the formal bureaucratic

Six Sigma why are doing it and it's to

do this it's to go and talk to your

customers collect the voice of the

customer what is it that the customers

want from your product and your service

and it will be both of those things by

the way some of the things they will

name could be things about the

performance of your product so they want

it to last a long time for example but

it could also be the quality of your

service so they wanted to last a long

time they want it to be highly reliable

then I want the old technical little

faults while there while they're using

it so that's more to do of course with

the way that you manufacture it as

opposed to the way you design it so if

you don't

the voice of the customer this could be

about design this could be about process

so the voice of the customer and then

you turn the voice of the customer into

something which is measurable something

which is critical to quality okay no CTQ

something which is measurable so just to

put something up here this needs to be

by the way prioritized so you get a

prioritized voice of the customer then

what you get is a prioritized list of

what's critical to quality now what are

ctq's typically ctq's normally is

measurable it's something which is

measurable so as an example the voice of

the customer is normally very

non-technical it'll just say things like

I want the product to last a long time I

want the product to be reliable that

type of thing what you're then going to

do is to turn that those phrases into

measurable things so if you say customer

says I want the product to last a long

time you might decide when you convert

that into a ctq that means it lasts at

least five years and then not something

that's measured well you can measure

your product in you say well it's my

product capable of lasting for five

years before it's you've got to throw it

in the bin and start again and of course

now what you can do is once it's

measurable you can then ask the question

how are we doing and of course if the

reserve if any where there is a

shortfall on your ctq's mainly that's a

project now doing it that way the great

thing about doing it that way

this can pick out projects for design

for six

you can tell your designers what to do

this works for design for Six Sigma when

you're designing new products and

services but then it also tells you for

the services and products you have in

play at the moment in production at the

moment what things should you work on to

improve so voice the customer ctq's look

for the shortfall do a project very

straightforward the next one down is the

lean tool you could do a value stream

map sometimes also referred to as a

big-picture map again this is all about

the customer you are trying to map the

customer experience so if you take a

look at this graphic here is a little

example of a big-picture map what the

big-picture map is showing you what it's

measuring is the customer experience and

what it's designed to map is is one

order from a customer so over in the top

right-hand corner here we have a box

which is the customer the customer

places an order and then every box

subsequent to that is the activity that

takes place to convert the order from an

order into goods so at the top you start

to see the planning and the purchasing

process our material gets bought and the

job appears on a production plan


the because the the order for material

goes into a supplier over here on the

left hand side then the material arrives

then the bottom boxes are the conversion

process and eventually the goods are

complete and the order goes back to the

customer so it's another version of the

voice of the customer in a way it's

almost the experience of the customer

and then what you're doing is you are

looking for points where flow is

interrupted any point where flow is

interrupted and because that is what the

7 wastes are about the 7 wastes all the

measure interruptions in the flow and

that's the only thing they're doing

nothing else I'm gonna play to people

it's the flow of goods through the

factory now one of the 7 wastes of

course when you do the big picture map

these defects defects are indicated on

the big picture map the opposing arrows

that you see that's rework the big cue

that you see that's a quality point so

you will typically see defects on the

big picture map if you see defects on a

big picture map then potentially if

that's a project and finally of course

what you could do is just go and look

I'm gonna call it the cost of poor

quality I'm actually gonna say the cost

of quality so let me say that the poor

what I think because I prefer that

phrase they wait to do this is to just

look at the cost of quality and then to

go fix the biggest cost of quality and

transform your cost of quality because

your cost of quality typically is going

to be split into three you are going to

get the Riesz costs of rejects recalls

repairs etc okay so it's procore in for

this so we'll say maybe the cost over

the Reis currently looks like that then

you're going to get praise or costs

so here are the appraisal costs and

finally you're going to get the

prevention costs doing a bit of fire

prevention instead of firefighting so

here's the firefighting cost we want to

see how much money are we spending on

prevention so looking at the cost of

quality and then of course you're not

going to I'm going to get rid of all of

this but you're going to tackle the

biggest so what you're going to do now

again you're looking at defects

typically you're looking at errors

you're going to take the biggest and

that typically

it's going to be a project and that

really though you select the projects

may be nice to do the correct work

because obviously this is how you should

start off the whole process of designing

a new product or service right from the

beginning and if you get a prioritized

list of a customer you will please the

customer and then you'll just get lots

and lots really happy customers and

you'll make piles of cash so these are

different ways to do it this is also the

lean way also a great way to do it

because on the big picture map there are

lean projects here this is all about

setting up all systems and putting in

stock control systems and better

planning systems and getting rid a set

of time all sorts of great lean projects

so there's lots to be gained from doing

this as well as doing this but a nice

simple way to start is to look at the

cost of quality where's the money for is

it in prevention or is it in

firefighting and of course what you're

going to try to do is reverse the shape

of that diagram and that's the way to

pick projects and the one last thing to

say about the Six Sigma project that's

really important it should be a

technical problem

it should be a technical problem the Six

Sigma toolkit is world-class technical

problem solid that's what it's capable

of world-class technical problem-solving

Six Sigma was invented to do that that

was what Motorola needed so that was

what they invented Six Sigma knees

world-class technical problem solving so

God would find your technical problems

then use Six Sigma to smash those

problems out of the water and make

shared loads of money

don't go to Six Sigma in offices

and things like that swear you know

maybe some simple lean tools and some so

common sense almost will fix it Six

Sigma is a fantastic world-class

technical problem-solving tool kit if

you want my opinion you can solve

anything without tool kit technically

I'm happy to come and solve anyone's

problem even though I've never seen your

process before world-class technical

problem solving if you'd like to know

more about any of the concepts covered

in this video or any of the other

concepts covered in my my other tutorial

videos then here's my latest book drink

tea and read the paper covers everything

you need to know about how to make sure

that Six Sigma becomes world-class

engineering in your company voice if

you'd like to get in touch with me a

little bit of help about lean a little

bit of help with Six Sigma please

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