If all other things such as
project outlining, defining deviations and correction measures using the famed
DMAIC, training the personnel, assessment and audit are on one side, then the
project selection on the other can outweigh all of them. It doesn’t matter that
the improvement project is not more than academic interest; it’s success
depends entirely on the selection of the project itself.
What Does It Mean To Select a Wrong Project?
What does it mean to select a
wrong project? Well, this question has arisen not because projects are selected
wrongly by design or because the project selection teams are incompetent. This
question can’t be misconstrued as something willful when especially it dawns at
an advanced stage that the project is out of track and control and as a
consequence, doomed to fail.
Fail-Proofing the Projection Process
In Six Sigma, project selection
is based on two foundation cornerstones that are ‘total customer satisfaction’
and ‘maximization of ROI.’ We can use the analogy that a home is only as good
as its foundation.
Look for projects in your annual
strategy documents that have roadmaps with various business objectives defined
for the ensuing years.
Another place to look will be
the budget and HR; HR, for one, is a major component of expenditures. Even
though it is not personnel reduction, along with the budget, it accounts for a
major chunk of wastage adding to Cost of Poor Quality, COPQ. ROI maximization
depends heavily on reducing COPQ.
Customer survey, complaints
received by sales department indicate the Voice of Customer or VOC. Complaints
are opportunities which define how they benefit from your business services or
products. Orienting business purposes towards VOC offers project ideas, too.
Places To Look For Projects
- Recurring events like payroll processing, new
hires, etc. consume resources endlessly. This category provides for
result-oriented projects
- Six Sigma projects get a boost to their
success probability if the scope is narrowed down to realistic and
quantifiable targets. The quote, “You can’t boil the whole ocean” applies
here.
- Define the anticipated results and if they
make measurable entities; measurable results are looked upon as practical
and result oriented.
- Select manageable projects as they can be
successfully completed within reasonable timeframes. Projects of larger
proportions take longer and resources eventually loose management
commitment.
- Brainstorming with key people from strategic
areas generates ideas after critically examining rationalities of
processes particular to their respective areas. Brainstorming may
critically examine the project selection process itself. Pay attention to
cost drivers such as any wastages.
- Process variation is another area to look
into. Are there hardened assumptions and notions about existing, variation
prone processes can be disproved and whether there exists scope for
streamlining it? This is a major area you can expect the project to make
substantial contributions to the bottom line by reduced COPQ.
Individual industry scenarios
may differ but these guidelines still hold. As project selection is the foundation,
there is no sense in firefighting at a later stage, having gone deeper into
implementation.