SUMMARY
Choosing the right Six Sigma selection for your organization is the most critical, but often most mishandled activity. It should not be for the simple reason that well-selected and –defined improvement projects mean better, faster results.
The keys to effective project selection start with the training of the executive leadership. Common notion has it that the task of selecting a project is too simple for an executive. That is wrong. Six Sigma projects should be well defined at the onset if you want it to achieve the greatest impact.
The next step is to launch a reasonable number of projects. Too many projects can drown leader’s ability to monitor them as well as scatter the people’s attention and focus. The ideal is to strike a balance between two broad criteria: meaningful and manageable. Keep the assignments small and very focused. There is a need to focus on both efficiency (internal) and customer (external) benefits of the projects.
Selecting a good project is itself a process that when you follow well, you improve your “hit rate” substantially. Following are the major considerations in choosing the Six Sigma projects:
What then qualifies as a Six Sigma improvement project? You can’t just use the DMAIC right away here. You need to consider three basic factors.
Here’s a sample project scenario of an excellent insurance company.
The job market in the area near the Excellent Insurance Company’s national call center is tight. Competition for new hires is intense, and Excellent’s call center director is looking for new ways to attract applicants. To promote referrals, Excellent is scheduling a “Day on the Green” picnic and concert at the Center City amphitheater. Each employee who brings a potential new hire for Excellent will get a free “Day on the Green” T-shirt.
Is there a problem opportunity? Absolutely. The call center needs people, and there aren’t enough to hire.
Is the cause of the problem unknown? No. It’s been a strong economy, and several other large employers near the call center have had trouble filling positions.
Is the solution predetermined or obvious? Yes, or at least one possible solution is on the way to implementation.
This scenario is an example of a project that might be assigned to a Six Sigma team when, in fact, it would be very likely be a cause for frustration. Certainly Six Sigma techniques are not needed to plan the Day on the Green event! In other words, you and your leaders should be careful not to shove just any old issue that seems important onto the Six Sigma project list.
What then should be the criteria for project selection? Offhand, the key word is priority; which problems/opportunities should you tackle first. Whichever you decide, the project should be based on your organization’s current needs, capabilities, and objectives. Selection criteria can be categorized into Results or Business Benefits, Feasibility, and Organizational Impact.
The end-product of the selection effort is the rationale of the project. The Project Rationale establishes the direction, becomes an effective communication tool or even an internal “marketing” document. Sometimes called a Business Case, Project Mission, or Purpose Statement, the Rationale provides a starting point for an improvement team to create its “Charter.”
A final consideration is what improvement model to adopt. There is no right or wrong improvement model for Six Sigma, which are based anyway on the Plan-Do-Check-Act. What’s important to work on the model that works for your organization. However there are potential advantages in using the DMAIC.
DMAIC can provide a fresh look or start, or even a “clean break” from the old models. It can also give a new context to familiar tools, can create a consistent approach, put a priority on “Customer” and “Measurement,” and offer both “Process Improvement” and “Process Design/Redesign” paths to improvement.
COMMENTARY
Indeed well-chosen projects mean success; conversely wrong or poorly chosen projects mean delayed results and disappointments, and the worst, failure.
The right way to select projects is well discussed. This is good because in real life the situation is not always in black and white. The tips given therefore are appropriate. By presenting the Do’s and Don’ts of project selection, you see a balanced picture.
Even with this guide, however, choosing projects is undeniably difficult and tricky. Managers should not just take it for granted.
