Hi, guys. Welcome to the first module in domestic projects. We're gonna talk about project selection. I'm Catherine MacGyver. And today we're going to go over some considerations for project selection. There will actually be a couple of modules related to this. So this module, our next one, which is Hussian Conry, it talks about strategic prioritization.
Excuse me? Strategic planning. And then we'll also have a project prioritization.
I want you to conceptualize just thinking about coming up with a product or a project list. So if I were to walk through my workplace, what are the things I think would be a project? So when we talk about the criteria for lean six Sigma projects,
the first thing is it has to be unidentifiable process. So it has to have
inputs, outputs and customers. So if it doesn't have an output or it doesn't have a customer, this isn't something where we're going to be able to utilize our tools on. So when I say doesn't have an output like, um, file repositories, we stick everything in there, and it's available if we need it, but
we don't really, ever use it. So we don't have customers. That's not going to be a good project, but
something where I get all of this information from the department ahead of me, I prep it and then I move it to the department below me and I have a very distinct This is what my job is. That's gonna be a great lean six Sigma project,
something to keep in mind, no predetermined solution. This is very important when we start talking about the inner relationships between the different types of project methodologies. So first, if you have a solution so you know what, we'll fix it. Do it as a P D. C A s o a quick hit or just do it.
Plan to check act to make sure that the solution that you have in mind fixed what you were thinking was going to be the thing documented as a quick hit. Pretty into that file repositories that nobody references because it's not a good lean six Sigma project
and move on when I talk about no predetermined solutions in the context of project based work. So a couple of things
lean. Six Sigma is one of a multitude of project based disciplines the other really common ones are project management were waterfall methodology. This is done by the PM I the Project Management Institute, PMP certification Project manager Professional
Um, waterfall is different from lean six Sigma because you know what the outcome looks like. I'm going to do a project that is going to implement an e r P. I'm going to build a 7 47 thes air project management because you don't need to find
ah solution or a future state.
Conversely, agile um,
which is a development project management tool agile, also knows what the solutions look like as faras, agile is very much driven by customer requirements. But you know that you are developing a new application, which is different. Sometimes lean. Six Sigma does end up
developing applications, so there's quite a bit of overlap between all of the disciplines.
But if you know from the onset that your need to develop something agile is going to be a better choice. If you know that you need to project manage something because you know what the end looks like, you're going to want to use the project management. The PM I air the waterfall methodology. If you know that you want to improve something,
but you don't know what that improvement looks like. This is going to be a good candidate for Lean six Sigma Project.
It has to be able to be measured.
Remember, if we think back to
lean six Sigma is an ideology. It's composed of three items. We have our customer expectations or our customers drive value. We have our employees collaboration or employee engagement, and then that last piece is our data driven metrics. So we have to be able to measure it. If you can't consistently measure or re measure
something, it's not gonna be a good lean six Sigma project. And then if you guys remember from our stakeholder conversation, it has to have a process owner because the facilitator, the person who's leading your project, isn't going to be the person that needs that can or should be the manager of it at the end.
So the last thing is is that before you even consider
starting a process, if this is
something in the future, if you don't have somebody for it to be assigned to, this isn't the right time to do. This is a lean six Sigma Project. Not to say that it's not a good project, but unless you have an owner for it, um, this isn't the time to work on it.
Some of the more common areas for process improvement defects we already know it's a waste. We know that we have D P M o r defects per 1,000,000 opportunities, um, customer satisfaction concerns. So we talk. We'll talk a little bit about voice of the customer in the future
that you guys already know. Ideologically, customer satisfaction is one of the driving forces for lean and six segment.
We talked about capacity concerned. This is usually the one that people think of when they think of lean six sigma. This is the better, faster, cheaper or the work smarter. Work faster, work cheaper. Um, really, When we talk about capacity concerns, I think that it's important that this point to call out that lean six sigma actually doesn't
increase your revenue.
Um, what they can do is increase your capacity and decrease your overhead. So when we talk about money components, remember, increased capacity decrease overhead so you can do more with less in the same amount. Um, other common areas
process variation. So you get changing outcomes or changing outputs. That's really great
process improvement project because it means that your your process is unstable, increasing costs. So remember we can increase capacity or decrease overhead. Increasing costs is another one. Then when we talk about unacceptable metrics, this is going to be driven by your organization. So we're gonna talk about
what does your organization goals are when we do wish income? Bree,
if you're not needing those goals, that's a good place to have a lean six Sigma project
less common areas, but something that is to consider as you're looking around your organization. Materials utilization. So what are your raw materials going into it? Are you using them as effectively as you call it? So the example that I give for people to conceptualize this is lumber yards and scrap rates, so you have
10 pieces of wood that come in.
You use each of those 10 pieces at 90%. Maybe there's a different way that you can utilize that material so you only actually need nine pieces of wood. Um, another area is meeting into failure rates. So if your instruments go or excuse me your machines or your instruments go down on a regular basis or an irregular basis.
Looking at how you do your maintenance is another good area for process improvement
when we talk about competitive market shifts, this is the changes in your customer's expectations. We will go more in depth in this in black belt. When we talk about the Cano model and customer satisfaction, Tze and customers delight er's
versus dissatisfied IRS. And how do you make sure that your organization is staying
ahead of that and then anything that you audit for? So if you have a Q A department or excuse me quality assurance department or a auditing function, anything that you audit for ought to be a process improvement project. I duly you would be able to poke a year okay, so that you don't need
an audit in the future.
When we talk about how, what makes a good lean six Sigma project, we need to keep things in mind. The solution isn't already known. If we know it, we need to consider. Is this a project management project, Or maybe possibly an agile ER development project
can be documented on the site pocketable so remember the sigh pock tool. From early on, we talked about what is a process. You have your suppliers, your inputs, your processes or your activities, your outputs in your customers. If you cannot document this process on the SaiPan tool, this is
not really a good candidate for a process improvement
project. It is measurable. So when we say measurable, also keep in mind re immeasurable. So if this is one time thing like an earthquake, um, going back in measuring that same mountain three weeks later when you've made improvements, you're not going to get repeatable measurements. So it needs to be something that's measurable and re measurable,
and you need to have an owner who's accountable for the process. So this is the supervisor of the manager of the executive.
This is going to be the person that ultimately is responsible for that process. You want them to be engaged in the project and bought in for the project. All right, guys,
those air high level considerations for project selection, so things to keep in mind our next module is who Shin Conry, which is strategic planning with the lean six Sigma swizzle.
So I will see you there