Six Sigma Executive Overview

Six Sigma Executive Overview
March, 2008

Define Measure

Control Analyze

Improve

© 2002 – 2008 by Cobam, Inc. All rights reserved Six Sigma Executive Overview - 1

Objectives
The purpose of today’s session is to:

Describe the Six Sigma Breakthrough strategy

Understand the roles of Six Sigma key players

Understand the DMAIC methodology

Review Metrics, Balanced Scorecards and Dashboard

Review An Approach for Implementing Six Sigma

Discuss the advantages of implementing Six Sigma


Agenda Of Topics

Section I Six Sigma Overview
Section II Management And Organizational Infrastructure
For Six Sigma
Section III DMAIC Breakthrough Methodology
Section IV Business Metrics, Balanced Scorecards, And
Dashboards For Six Sigma
Section V Q&A


Section I
Section I : Overview Of Six Sigma
The “Goodness” Level
The Cost Of Poor Quality (COPQ)
What Is Six Sigma
Technical & Business Definitions
Reduce The Variation
Six Sigma Examples
Improved Profitability
Six Sigma Vs. Continuous Improvement
Streams Of Six Sigma
Six Sigma Across The Entire Enterprise
Basic Building Blocks
Results & Benefits

The Goodness Level of 99%
20,000 lost articles of mail per hour
Unsafe drinking water almost 15 minutes per day
5000 incorrect surgical operations per week
2 short or long landing at most major airports each day
200,000 wrong drug prescriptions each year
No electricity for almost 7 hours per month
4,100 crashes for every 500,000 computer restarts
60 months would not balance for 500 years of month-
end closing
1.68 hours of dead air (per channel) for every week of
TV broadcasting


If we applied Six Sigma…
1 mis-delivery instead of 3,000 mis-deliveries
for every 300,000 letters delivered
Less than 2 crashes instead of 4,100 crashes
for every 500,000 computer restarts
.018 months would not balance instead of 60
months for 500 years of month-end closing
1.8 seconds of dead air instead of 1.68 hours
of dead air (per channel) for every week of TV
broadcasting
340 defective tax returns in the 100 million
Tax returns filed each year.
3.4 car accidents for every 1,000,000 miles
driven


What is Cost Of Poor Quality?
COPQ is categorized into:
Internal failure costs
External failure costs
Appraisal costs
Prevention costs
COPQ means not doing what is RIGHT the first time
COPQ includes reworks, scraps, meetings with no purpose,
etc.
Hidden issues are usually more important than visible issues
It is very important for organizations to direct their efforts to
these hidden issues.
While 6 sigma techniques can flatten the overall costs,
management needs to ask the right questions so that these
issues are effectively addressed.


Examples of COPQ
Very often, COPQ issues can be To ensure success with Six
hidden from view. Examples sigma, management must
include:
have:
Maintenance
Litigation Need
Rerun costs Vision
Lost time Plan
Lost Management
Lost business
Lost opportunities
Lost Assets
Lost credibility
Project Rework
And much more


What is Six Sigma?
Highly disciplined strategy with laser focus on developing
and delivering near-perfect products and services.
Management mandated and directed improvement program
to achieve breakthrough profitability and quantum gains in
quality and customer satisfaction
A business improvement approach focused on core business
and Customer needs. Seeks to find and eliminate causes of
mistakes in areas of critical importance to customers.
A systematic method that uses Champions, Black Belts and
Green Belts to facilitate change
A Greek symbol for measuring performance variation
A metric for evaluating performance of the bottom line.
A standard of excellence (3.4 defects per million
opportunities)


What is Sigma?
A statistical technique Sigma measures the
to normalize reporting
results in terms of events
to the same scale,
allowing processes to per million.
be compared Events can be failures,
throughout the defects, costs, or other
organization. measurable data.
It levels the field, Differences between
allowing apples to be sigma values are not
compared to car equal.
production, by putting Six Sigma is the nominal
the results of both in goal.
the same language.


Definition of Six Sigma
Technical Definition
Normal Distribution Shifted
LSL USL
±1.5 s
12.5% 12.5%

3.4 DPMO 3.4 DPMO
Cp=Cpk = 2

- 6s -5s -4s -3s -2s -1s 0 +1s +2s +3s +4s +5s +6s

6s to LSL 6s to USL
Sigma Level Parts Per Million Business Definition:
6 Sigma 3.4 ppm
A Management driven, scientific
5 Sigma 233 ppm methodology for product and process
4 Sigma 6210 ppm improvement which creates
3 Sigma 66,810 ppm breakthroughs in financial performance
2 Sigma 308,770 ppm and Customer satisfaction
1 Sigma 697,672 ppm

Where It All Came From
Motorola noted that many operations, such as Process Capability
complex assemblies, tended to shift 1.5 Sigma (Cp) is a metric that
over time. So,
describes how well a
a process, with a normal distribution and
normal variation of the mean, would need process
to have specification limits of plus or minus meets requirements.
6 sigma in order to produce less than 3.4 This works only with
defects per million opportunities. a CENTERED mean.
This failure rate can be referred to as DPO
or DPMO.

A Six Sigma Quality Level is said to translate
Process Performance (Cpk)
to process capability index values for Cp and Cpk
requirements of 2.0 and 1.5, respectively. Similar to Cp, but accounts for
To achieve this basic goal, a Six Sigma program Process shifts and drifts
might then be able to produce at least 99.99966%
“quality” at the “process step” (i.e., no more than
3.4 defects per million parts / opportunities or
process steps if the process mean were to shift by
as much as 1.5 sigma).


Sigma Quality Level & Failure Rates
Cp ppm Error/Defect Success %
Sigma Level
PMO Rate
0.33 317,311
1 609,000 31.00%
0.67 45,500
2 308,000 69.20%
1.00 2,700
3 66,800 93.32%
1.10 967
4 6,210 99.38%
1.20 318
5 230 99.977%
1.30 96
6 3.4 99.99967%
1.33 63
The Sigma Quality Level
1.40 27 Sigma vs Percent

1.50 6.8 100
90
1.60 1.6 Percent
80
70

1.67 0.6 60
50
40
30
1.0 1.5 2.0
2.5 3.0
Failure Rates for Cp Values 3.5 4.0 4.5 5.0 5.5
Percent
Sigma 6.0 6.5 7.0


ormal Distribution
Using the standard deviation, we can determine the proportion of the product/process which will
be between the upper and lower specification limits, and thus considered acceptable.
LSL USL

3.4 DPMO 3.4 DPMO

- 6s -5s -4s -3 s -2s -1s 0 +1s +2s +3s +4s +5s +6s

66.26%

95.46%

99.73%

99.9937%

99.999943%

99.9999998%


Reduce The Process Variation
Off-Target Too Much Variation

Centered
On-Target
Center Reduce
Process Spread

The objective is to understand customer requirements and reduce
process variation and defects


Six Sigma Overall Approach
Practical Statistical
Problem Problem
State Hypothesis

Y = f (x1, x2, …, xn)

Practical Statistical
Solution Solution


Six Sigma Is A Closed Loop System
The Closed Loop System
Customers
Y = f (X)
Y's
Organization/Process

X Y's
Inputs Y's
X

X

X's

Products Profits

Business Process Model


Sigma Examples
Application Availability (24 X 7, except for six hour maintenance
window each Sunday Morning). 1 defect = 1 minute lost.
30 day month, with four Sundays: 41,760 minutes or opportunities for
failure/error.
Defects/Opportunities * 1 million
(30 minute outage/41,760) * 1,000,000 = 718.39. Sigma Quality Level
= 4.69 (99.93% availability)

An Olympic sport person who shoots 398/400 (99.5%) is at
4.08 Sigma. 399/400 (99.75%) is 4.31.

If an airplane has 1 million parts, it will have 230 defective ones at
5 Sigma. (99.977% are good).

If you win 60% of your bets at Las Vegas, and bring home a
lot of $, your Sigma is only 1.75!


Improved Profitability
Customer Satisfaction + Efficient Systems = Improved Profitability

Three ways to improve financial performance:
Increase Sales
Improve Customer satisfaction and market position
Decrease the Cost of Goods Sold
Reduce variation and defects
Understand root cause of issues and eliminate the source of problems
Improve process performance and reduce waste using lean principles
Increase Price
If possible by adding more value added services or product features


Six Sigma Vs. Continuous Improvement

EVOP:
Large Samples,
Minimum Results
Breakthrough Strategy

Six Sigma
Breakthrough
70% Improvement

1 2 3 4 5


Six Sigma is Lean

Production Material Machine Workplace Process
Control Flow/Control Management Management Management

Pull Pull Total Productive Standard
SPC
Systems Systems Maintenance Work

One Piece Kanban Quick Visual Root Cause
Flow Systems Changeover Factory Analysis

Load Ohno’s Visual Defect
SMED
Leveling Supermarket Controls Reduction

Pacemaker Value Stream Poka
5S
Loop Mapping Yoke

Continuous
Flow
Eliminate waste (Muda), reduce inventories and
production costs while improving quality


Streams Of Six Sigma
Transactional Six Sigma

Six Sigma touches on all aspects of the
Focused on operational excellence, Customer
satisfaction and cost reduction within all components of
the operation. Areas of focus include Sales, HR,
Finance, Materials, etc.

Business Enterprise
Manufacturing Six Sigma
Focused on product production excellence, variation and defect
reduction, lean manufacturing, Customer satisfaction and cost
reduction within all components of the production and delivery
process.

Design For Six Sigma (DFSS)
Focused on product design excellence, Customer satisfaction
and cost reduction within all components of the development
and new product introduction process. Requires the rigorous
application of three key tools: QFD, FMEA, and DOE.


Six Sigma Across The Entire Enterprise

Business Level Executive Strategy and
Decisions

Operational Level Black Belts

Process Level Process Owners


Basic Building Blocks
Defining and using business objectives and metrics that focus our
attention on performance and defects that are most important to the
customer and have the greatest potential for impacting the bottom line

Business & Quality Metrics
Dedicated Systematic
resources and Approach to
focused improving
infrastructure, performance and
trained in the use reducing defects
of the 6 Sigma which are
problem solving Six Sigma DMAIC important to the
and process Infrastructure Methodology customer
improvement (qualitative &
methodology Profitability statistical)
Customer Satisfaction
Growth
Transformation

Strategic Business and Quality Metrics

CSI, Sales, delivery times, cost
per unit, Yield, DPU, DPMO,
customer response times, Web
hit rates, Rework/scrap rates,
etc. (Critical Business Business & Quality Metrics
Elements)

Management objectives and dashboard
forms the core of the strategic Business &
Quality Metrics and is flowed down to
other departments and process areas to
provide leading and lagging indicators of Six Sigma DMAIC
performance Infrastructure Methodology

Measure for Predictors and for Results.
Efficiency Vs. Effectiveness
The Vital Few Vs. The Trivial Many.


Six Sigma Infrastructure
Six Sigma Infrastructure

Six Sigma DMAIC
Infrastructure Methodology

Champion
Executive
Committee

MBB


Functions In A Six Sigma Organization
Champion Black Belt Function Structure Options
Top Management Project Team Leader
Executive Six Sigma Steering Committee
3 day training 4 week training
Direction Executive Steering Council
Identify key Lead the project
business issue Master in Six Sigma Six Sigma Manager
tools/techniques Six Sigma Director
Allocate resources Management
Apply DMAIC Master Black Belt
Support overall
1 / 100 employee Process Champion
program
Owner Sponsor
1 / business unit
Sponsor Process Owner
Master Black Belt Green Belt Champion
Internal consultant Process specialist
Coach Master Black Belt
4-6 week training +
1-3 week training Black Belt
experience
Monitor overall Execute the project Team Leader Trained Supervisor/ Facilitator
program Know most Black Belt
Master in tools/techniques Green Belt
tools/techniques Apply DMAIC Team Associate with Team Training
Teach, train & coach
1 / 20 employee Member Associate with Process
Six Sigma
Knowledge
1 / business unit
Green Belt


DMAIC Methodology

Define Measure


Control Six Sigma
Infrastructure
DMAIC
Methodology
Analyze

SPC & Improved A OVA &
Controls Regression
Improve

Design of Experiments

DMAIC Process

Measure Define
Define the
Measure and Problem
Analyze data and Project Objective
process X1 Y1 Project Goal
performance to X2 Y2
determine the X3
PROCESS
Y3 Identify ways to improve
critical variables X4
and root cause of the process and validate
the problem the solution

Improve
Analyze Control

Establish Controls on the critical Xs so the
improvements will be maintained


Six Sigma Results & Benefits
Improved Customer Satisfaction
Assure Products And Services Meet
Customer Requirements
Improved Quality, Efficiency & Cost Of
Goods Sold
Waste, Defect And Variation Benefits may include any of the following:
Reduction Bottom Line Results
Financial Savings (Hard And Soft)
Hard dollar savings (cost reduction)
Self-sustaining Infrastructure Soft dollar savings (cost avoidance)
Defined Roles And Responsibilities Improved Customer satisfaction
Empower Champions, Black Belts
And All Employees To Make Improvement in the performance metrics
Meaningful Improvements In (cycle time, yield, defects, etc.)
Performance Improved job satisfaction (reduction in
Effective Communication frustration)
Commonality
Language, Training Materials, Tools Short Project Completion (3-6 months)
& Software When considering benefits… what must
Methodology change for the savings to occur?
Expectations
Solutions
Financial Tracking (Establish,
Maintain Metrics)


Section II
Section II Management & Organizational
Infrastructure for Six
Sigma
Executive Staff
Champion
Master Black Belt
Black Belts
Green Belts
All Employees
Typical Six Sigma Training


Six Sigma Steering Committee

Functions
Set the vision
Create the mandate for improvement
Initiate and fund the activity
Establish and maintain the reporting structure
Responsibilities (5%+ of time)
Identify Champions in each functional area
Monthly review of projects by Champion
Measure Champion results
Training
½ day Executive Overview
3 day Champion Training


Champion
Functions
Communicate the vision
Create the mandate for improvement
Provide direction and remove barriers
Achieve financial results and communicate success
Identify Black Belts and Green Belts
Identify and approve all Six Sigma projects
Biweekly review of all projects
Measure Black Belt performance
Training
3 day Champion Training


Master Black Belt
Functions
Provide technical expertise on Six Sigma and Lean
methodology to Black Belts and teams
Work in support of the Black Belt and Champion
Assist in education and training activities
Responsibilities (100% of time)
Work daily with team members, Black Belts and
Champions
Participate in the review of projects
Monitor all Six Sigma projects
Training
20 day Black Belt Training, 2 years minimum as a
Black Belt and a Masters Degree in a related field


Black Belts
Functions
100% dedicated for 2 years to process improvement
Work on improvement projects with other Green Belts
and Team Members
Achieve financial results for each project Goal of
$350K+
Responsibilities (100 % of time)
Use the DMAIC methodology to create breakthroughs in
Mentor, performance
Teacher,
Report progress to the Champion
Coach,
Identifier, Hold team meetings and provide excellent project
management
Influencer
Work with the Master Black Belt
Training
20 day Black Belt Training


Green Belts
Functions
20% dedicated for 2 years to process improvement
Green Belts Work on improvement projects with other
Green Belts and Team Members
Achieve financial results for each project Goal of
$350K+
Use the DMAIC methodology to create breakthroughs in
performance
Report progress to the Champion
Hold team meetings and provide excellent project
management
Work with the Black Belt or Master Black Belt
Training
10 day Green Belt Training


All Employees
Functions
Work to achieve excellence in daily work
Participate in Six Sigma projects
Support team activities
Identify opportunities for improvement
Responsibilities (5-10%+ of time)
Participate in Six Sigma activities as requested
Complete action items as assigned by the team
Attend team meetings
Training
1 day Six Sigma Employee training


Typical Six Sigma Training
Six Sigma Overview & the DMAIC Roadmap
Week Process Mapping, Quality Function Deployment, Effect
Failure Re lationship
V ery stron g relatio nship (9)
S trong rel ationsh ip (3)
W eak rel ations hip (1)
No mark indicates no import anc e or relat ionship
HOUSE OF QUALITY
for
Univ ersity of Detroit Mercy MBA Program
Q UA LITY FUNCTIO N DE PLO YM ENT (QFD) CHA RT

+
-
-
-
Corre lation

+

-
Hi gh posi tive
Po sitive
Hi gh Negative
Ne gative

Mode
+
+
+ + -
+ + +
+

Failure Mode & Effect Analysis
+ + +
+ + + + +

One
Program Quality /Reputation Fees ($)

Schoo l R equiremen ts (HOWs)

Maintain c ompetitiv e admiss ions requirements
* AACS B - The Asso ci atio n to A dvance

Maintain c ompetitiv e c ours e/regis tration fees
S tay current on changing educ ational needs

Maintain s trong ties to bus ines s community

O ffer c ours es during weekdays , ev enings ,
C olleg iate S ch oo ls of Busi ness (int ern ati ona l)

P rovide/ac cept govt . loans , sc holar ships ,
E st ablis h global bus ines s per spectiv e
O ffer broad base of busines s cours es
P roduc e/ cr eate s uc c es s ful graduates
Maintain ex cellenc e with AA CSB *

grant s, ot her f inanc ial as s is tanc e
E valuate s taff c ompetency
C ustom er
I mportance

Organizational Effectiveness

weekends , online
Custome r Re quirements
(W HATs) Custom e r Ra tings
1 2 3 4 5

Current Excellent school accreditation
4

3

Scho ol Acede mics
Cause
Tailored program (curriculum)

1
Flex ible admissions qualifications

Controls
2
Broad availability of courses

Process Capability
Program application to real-w orld
4
scenarios

Costs
Program affordability 5

Technical Difficulty 4 5 2 3 4 5 1 4 2 3 1
Objective Target Values AA A AA AA A A A AA AA A U DM
UD M A AA AA B A AA AA A AA A AA AA A B AA AA MSU
Objective M easures MSU AA AA A A AA A A A AA A AA AA AA Acme Ed.
Acme Ed. A B B A B B A B AA A B AA A
Technical Absolute 48 48 36 57 13 42 12 22 24 45 8
Importance Relative 2 2 5 1 8 4 9 7 6 3 10

Measurement Systems Analysis
Quality/ grading Sc ale
A A A - Out standing
A A - Excellent
A - Good
B - Fair

Statistical Thinking Observed Process Variation

Week Hypothesis Testing and Confidence Intervals Actual Process Variation Measurement Variation

Correlation
Two Multi-vari Analysis
Long-term
Process Variation
Short-term
Process Variation
Variation within
Sample
Variation due to Variation due to
Gage Operations

Repeatability Bias Stability Linearity Reproducibility

Regression Analysis
ANOVA
Week Design of Experiments
Response Surface Designs
Three Multiple Regression
Facilitation Tools
Control Plans
Week Mistake Proofing
Team Development
Four Parallel Specialized Tracks


Section III
Section III : DMAIC Breakthrough Methodology
The DMAIC Roadmap
The Funneling Effect
Six Sigma Tools & Techniques
Define
Measure
Analyze
Improve
Control


The DMAIC Process Roadmap
Step 1: Define Process Step 2: Measure Existing Process
Map process and Identify Key Inputs and Outputs
Improvement Build Cause and Effects Matrix to prioritize key activities
Goals & Objectives at Establish Key Metrics
Executive, operations, and Establish Measurement System Capability
Project levels Establish Process Capability Baseline
VOC Requirements
Project Charter
Team Charter Step 3: Analyze Process
Estimated $ Impact Complete FMEA and evaluate Control Plan
Leadership approval Perform Multi vari Analysis to identity Potential Critical Inputs
Analyze Data and Prioritize Key Input Variables
Identify Root Cause or Causes
Develop Plan for Next Phase

Step 5: Process Control
Step 4: Improve Process
Establish Controls on Improved Process Verify Critical Inputs
to sustain improvement Use Appropriate Tools To Improve the Process
Implement Control Plan Optimize Critical Inputs
Validate the Improvement
Verify Long Term Capability
Continuously Improve Process


The Funneling Effect
Define
Process Maps 30+ Inputs All X’s
Cause & Effect
Measure Matrix 10-15 1st “Hit List”

Failure Mode &
Analyze Effects Analysis 8-10 Screened List
Multi Vari Studies

Design of Found Critical X’s
Improve Experiments (DOE)
4-8

Control Plans 3-6 Controlling Critical X’s
Control

Critical Input Variables


Six Sigma Tools & Techniques

Y = f ( X 1 , X 2 , X 3 ,..., X k )
Define Measure Analyze Improve Control

Metric Assessment
Process Maps
Cause & Effect Matrix
Potential Failure Mode & Effect Analysis
Measurement Systems Analysis
Capability Analysis
Multiple Variable Analysis
Design of Experiments
Statistical Process Control
Control Plans


Tools…Techniques…Tools…Techniques
Process Mapping Failure Mode & Effect Analysis
Cause & Effect Matrix Multi Vari Studies
Measurement Systems Analysis Fractional Factorial Experiments
Capability Analysis Full Factorial Experiments
Descriptive Statistics Response Surface Methods
Graphical Techniques Transformations
Box Plots Normal Distribution
Histograms Sample Size Determination
Scatter Plots Screening Studies
Run Charts
Fishbone Diagrams
Pareto Charts
Hypothesis Testing
Check Sheets
Statistical Process Control Charts F Test
Correlation t-Test
Simple & Multiple Regression Chi Square Test
Inferential Statistics Tests For Normality
Central Limit Theorem Half Normal Plots
Confidence Intervals Analysis Of Variance


Six Sigma DMAIC Tools
Key Analytical Tools Software and software training
Define is an investment. It will likely
Process Mapping take several waves of Six Sigma
to start reaching the full
potential of any software. Ask
Measurement Systems
Measure Analysis & Process yourself the following:
Capability
What analysis do we need the
software for?
Analyze Statistical Tests, Modeling &
Root Cause Analysis
How well will it integrate with
existing software?
Improve Brainstorming, Design of
Experiments, FMEA, & Do we already own the
software?
Validation
What do our consultants
Statistical Process Control recommend?
Control


Six Sigma DMAIC Define

Define

Define Activities
Identify Project, Champion and Project Owner
Determine Customer Requirements and CTQs
Define Problem, Objective, Goals and Benefits
Define Stakeholder/Resource Analysis
Map the Process
Develop Project Plan

Define Quality Tools
Project Charter and Plan
Effort/Impact Analysis
Process Mapping
Tree Diagram


Six Sigma Define Activity Flow
VOC, Examine
Candidate Projects

Effort/Impact
Analysis

Develop and
Approve Project
Charter

Define
Customer CTQs

Complete
SIPOC and
Process Map


Voice Of The Customer (VOC) DMAIC
Methodology
Define

VOC is often full of emotions.

We need to restate customer
statements into fact-based,
performance requirements that
Why don’t you guys learn how to meet a we need to focus on
schedule?
Your service quality is too poor Identify Customer
Collect Customer Data
When will you learn how to provide service and
a Customer first attitude?
Analyze Customer
Data
Why don’t you tell us when there is a problem? Determine customer
I sent out e-mail after e-mail with no response! (CTQ’s):
Why do you try and make your customers CTQ – Critical To Quality
CTD – Critical To Delivery
responsible for your quality problems? CTC – Critical To Cost
Your Cycle Time is unacceptable Cost, Quality, Features, Availability


Critical To Quality Characteristics
Use QFD, C&E Matrix, Tree
Diagrams, etc. to define CTQ’s are the FOCUS of the
Customer CTQs based on the Problem Statement & the
Customer’s Point of View Project Charter

Detailed Customer eeds And
Product
Specifications Customer
Related Priorities
eeds

Customer Customer
Convenience
Communications eeds Expectation
Customer Service Basic
Stated eeds
Safety Expected
Real eeds
Desired
Perceived eeds
Unanticipated
Cultural eeds


Effort/Impact Analysis
Determine a Candidate Six
Conduct
candidate Sigma Project(s)
effort to
project list and
impact Project Champion
potential
analysis and
benefits: and Owner
prioritize the
Manufacturing project list
Materials Project Effort Impact
1 6 1
Management 2 3 3 Effort / Impact Analysis
3 4 3
Other 4 7 3 GB Projects BB Projects
10
5 10 3
operations 6 2 6 9
7 5 6 8
8 8 6 7
9 1 9 6
10 9 9 Impact
5 Impact
4
3
2
1
0
Projects with high impact are 0 2 4 6 8 10 12

preferred Effort


Develop Project Charter
SIX SIGMA
Project Charter
Establish direction for the Resource Requirements
Project No: Location:
General Information Review Schedule
Activity Date
Project Name: Business Start

project by documenting Project Leader:
GB/BB:
Segment:
Business
D
M
Master BB: Objective: A
H/O Champion: Customer I
Team Members: Name Function % Time Initials CTQ(s): C
Current Close
Process
Capability: Sigma, Cpk, DPMO, Cycle-time, etc.
Date:

Project Definition
Project Problem Statement:

Problem
Project Objective Statement:

Objective & Scope
Goal/target
Project Scope/Limitations:

Resource requirements
Financial benefits Project Goals and Targets:

Strategic benefits Project Plan:
See page 2 of the project charter. Project Plan and Gantt Chart

Team resources Expected Benefits:
Hard Dollar Savings:
Soft Dollar Savings:
Time frame:

Strategic:

Project approval Other Benefits:
Stakeholder Approval
Hands On Champion: Master Black Belt:
Name: Name:
Signature: Signature:
Functional Manager: Black / Green Belt:
Name: Name:
Other: Other:
Name: Name:

Date:


Problem Statement, Objective & Scope
A clear description of the problem to
communicate to other people in the
process and rally support to improve it
A description of the issue or problem
What process will the team focus on?
What, when, where and how the problem
occurs What are the boundaries of the process we
are to improve?
What is critical to quality (CTQ) from the
Where does the process begin? Where does
customer perspective? What is
it end?
nonconforming to specifications?
Which customers will be affected / included
Define the boundaries of the problem,
What is outside of scope for the team?
how big is the problem?
What constraints or timelines must the team
What are the consequences of the work under?
problem to the Company and or
Customer?

Do not state a solution when describing a
problem


Determine Resources
Determine the Stakeholders
Who will need to be involved and at what level
for this project to be successful?
Determine Team Members
Who will need to be on the team and at what %
of their time?
Determine any Capital, Test or HR
Requirements
What materials, testing, software
programming, outside services or equipment
will be needed? Are those costs acceptable to
management?
Other Support to be Successful


Project Plan
SIX SIGMA Project Plan Project Name & Number:
Site: Location: Revision Date:
Problem Statement:

Project plan
remains Improvement Objective and Scope:

through the
Goal and Targets
life of the Metric(s)

project
Benefits
Baseline Goal Improvement Goals
Date
Date
Date
Date

Tasks and Timelines Project
Phases Activity Assigned to: Start Date: End Date: Status: Review Date
Define
Project's Customer CTQ
Project Charter
SIPOC
Financial analysis of project's benefits
Detailed process map
Measure

Analyze

Improve

Control

Team Members
Team Leader: On Plan/On Schedule
Team BB: Behind Plan, with effort can return to schedule
Team Members: Behind Plan
Task Completed

Champion:


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