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    • History of Six Sigma : The Guru’s
    • Lean vs Six Sigma
    • What is Six Sigma ? Objectives Fundamental Beliefs Benefits
    • Six Sigma Project Overview >
      • Six Sigma Process Performance Metrics
      • Project Execution : Selection , Flowchart , Management , Evaluation
      • Voice of the Customer (VOC) >
        • CTX (Critical to X) Quality
        • Kano Model
        • Different type of Quality Cost
      • Risk Analysis SWOT (Strength, Weakness, Opportunity, Threat)
    • Six Sigma Team Management : Types, Roles, Size, Stages & Life cycle >
      • Six Sigma Organizational Infrastructure Team Leadership >
        • Six Sigma Roles and owners process
        • 3 levels of business management process
        • Six Sigma Training: Black vs Green Belt
        • Overview of DMAIC : Key points
      • Six Sigma Team Tool: Facilitation & Groupthink
      • Nominal Group Techniques Multivoting Force Field Analysis Brainstorming
      • Diagrams : Affinity Tree PDPC Matrix Interrelationship Prioritization matrices Activity network diagram
      • The 4 Stages of Team Growth & Human factor: Forming, Storming, Norming, and Performing
    • Six Sigma: Define Phase : Outcomes & 6 Element >
      • Six Sigma Define: 1Define Problem & 2 Identify Customer
      • Six Sigma : Define : 3 : Identify CTQs ( VOC Kano Model )
      • Six Sigma : Define : 4 : Map Process 5 Refine Project Scope
      • Six Sigma : Define : 6 Update Project Charter ( PERT CPM Gantt Bar WBS)
    • Six Sigma: Measure Phase : Outcomes & 5 Element >
      • Six Sigma: Measure : 1 Identify Measurement and Variation
      • Six Sigma: Measure : 2 Determine Data Type
      • Six Sigma: Measure : 3 Develop Data Collection Plan
      • Six Sigma: Measure : 4 Measurement System Analysis & Data Collection
      • Six Sigma: Measure : 5 Perform Capability Analysis
    • Six Sigma: Analyze Phase : Outcomes & 4 Element >
      • Six Sigma Analyze : 1 Measuring and modeling the relationship between Variables
      • Six Sigma Analyze : 2 Hypothesis Testing
      • Six Sigma Analyze : 3 Failure mode and effects analysis (FMEA)
      • Six Sigma Analyze : 4 Analysis of Variance (ANOVA)
    • Six Sigma: Improve Phase : Overview & 6 Element >
      • Six Sigma: Improve Phase : 1 About Design of experiments (DOE)
      • Six Sigma: Improve Phase : 2 DOE Process variables & Analysis
      • Six Sigma: Improve Phase : 3 Design Selection Guideline
      • Six Sigma: Improve Phase : 4 : Lean 5S
      • Six Sigma: Improve Phase : 5 Poke Yoke
      • Six Sigma: Improve Phase : 6 Standard Work & Kaizen
    • Six Sigma: Control Phase : Overview & 3 Element >
      • Six Sigma: Control Phase : 1. Statistical Process Control
      • Six Sigma: Control Phase : 2. Control Chart
      • Six Sigma: Control Phase : 3. Other: Pre-control Technique, TPM & Visual Management
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    • History of Lean & Guru’s >
      • Birth of Lean
    • About Lean, Value, Waste, Muda, Mura & Muri >
      • Overview Lean Tools, Techniques & House of Lean
      • Lean Excellence, Tools & Framework
      • Lean Framework 6 points, metric & Stability
    • Lean Team Setup : Structure, Meeting & Project >
      • Self Directed Work Teams (SDWT) , ACHIEVE TEAM SYNERGY , SQDCM, Teamwork Principles, Team Structure & Team Leader
      • The 4 Stages of Team Growth & Human factor: Forming, Storming, Norming, and Performing
    • Lean Process Mapping: Generic & Type >
      • SIPOC: Suppliers, Input, Process, Output & Customers
      • Lean Process Management , Excellence , Identification , Design & Mapping
      • Lean Process Mapping Symbols
      • How to Create a Simple Process Flow Diagram
      • Lean Value Stream Mapping, current, future & 3 type of work
      • Value Stream Mapping (VSM): About & 17 steps
      • Other Types of Process Maps & Pitfalls: Resources: iDef0, Document Map, Work Diagrams, Rendered Process Map
    • Lean Process Optimization , Andon System , Error Proofing ( Poka Yoke ) & Defect vs Errors >
      • Lean 5S System
      • Kanban : Benefits, Shapes of Inventory, Type, Operation & Sizing
      • Cellular Manufacturing: About, Benefits & 4 Dimensions of Cells
      • Heijunka, A 3 Thinking, Hoshin planning, Jidoka, Poka‐yoke , Kanban, Takt , Kaizen
      • Lean Kaizen (continuous improvement), Systems Thinking & Process Variability
      • Lean Visual Management & Visual Control
      • Lean Waste Detail: Eight Types of Waste
      • Line Balancing, Cycle Time, Takt Time, Assembly / Workload Balance & Man – Machine – Setup – Time
      • Single Piece Flow, Continuous Flow & Standardized Work
      • SMED Single Minute Exchange of Dies
      • Total Productive Maintenance (TPM): Preventive Maintenance Corrective Maintenance Inbuilt Maintenance
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​Six Sigma Project Overview

Project stakeholder and stockholders Important factors for Organizational performance Unsuccessful Projects Project management is concerned with doing things (the project)right. Project benefit = Project revenue –Project cost Project Accounting
Who are the stakeholder and stockholders in Six Sigma Project?
Stakeholder : One who has a share or an interest, in an enterprise
It is very important for a Six Sigma Black Belt to work across multiple processes to identify the process stakeholders, understand their requirements and process interdependencies, and improve the individual process configurations and settings to improve the overall outcome for all stakeholders.
Stockholders:
Provide money as investment, their commitment depend on short term/long term return Customers: Provide money as revenue, their commitment depend on price, quality, features, availability and service
Important factors for Organizational performance for stakeholders
•Short term and long term emphasis
•Profit Profit = revenue –cost Revenue = sales: it depends on values, features, price, quality etc Cost: it depends on how ‘lean’a company is
•Cycle time Cycle time for product development, cycle time from order received to goods delivered
•Marketplace response The ability to respond quickly to competitor quality, technology, product designs, safety features Or field service
•Resource utilization
Important success factors in Six Sigma projects
•Select and work on the most important problems and projects to the business and Customer
•Assure those projects impact customer satisfaction and financial performance
•Allocate the time to get the work done
•Have your best people work on them
•Provide those individuals with all the training, tools, and resources they need to make the performance breakthrough
•Provide Management direction, support and routine review of performance
•Require a well thought out, objective and data driven solution
•Verify the dollar savings of your efforts
•Sustain the benefits of the solution over time
Why Unsuccessful Projects
No clear Management mandate
No roadmap for the project…
not sure where we are going
No dedicated resources
No Management and performance review
No ability to measure performance and examine effectiveness…not sure if we accomplished anything
No financial
ROI during project definition and measurement at completion
No clear answer as to “why are we doing this project?”
Project management is concerned with doing things (the project)right
•Maximizing business benefits is concerned with doing the right thing (select the right project)
Projects may be selected from a broad range of areas:
•Improved process capabilities
•Customer complaints
•Reduction in internal defects
•Cost reduction opportunities
•Supplier related improvements
•Lean manufacturing principles
•Improved work flows
•Administrative/service improvements
•Cycle time reduction
•Market share growth
The projects should have specific targets, such as
•Reduced scrap costs in finishing department by 20% by the end ofthis year
•Improve market share for the hand-drill by 10% by the end of next year
Project benefit = Project revenue –Project cost
Revenue usually include in the budget:
•Income from additional sales from improved product cost, quality, features, availability to the customer
•Reduced losses for scrap, customer returns, warranty claims, cost of poor quality, low throughput, poor time to market
Cost usually included in the budget
•Manpower and labor costs
•Materials
•Equipment costs, rentals, leases etc
•Subcontracted work or fees
•Overhead or consulting charges
•Reserve or contigency funds
Six Sigma Project Accounting
•Budget: The approved written plan of the total costs and cash inflows, expressed in dollar amount, for the project. The plan includes timing of the revenue and costs, and benefit-cost analysis
•Forecast: The predicted total revenues and costs, adjusting the budget to include actual information at the point in the completion of the project.
•Actual: Revenues and costs that have occurred, and for which the amounts are known instead of estimated.
•Variance: The difference between the budget and actual revenues and costs. A positive variance denotes a favorable deviation anda negative variance denotes a unfavorable deviation. A favorable cost variance may be due to good execution, or may be the result of incomplete work or material shortage.
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  • Home
  • Six Sigma Wiki
    • History of Six Sigma : The Guru’s
    • Lean vs Six Sigma
    • What is Six Sigma ? Objectives Fundamental Beliefs Benefits
    • Six Sigma Project Overview >
      • Six Sigma Process Performance Metrics
      • Project Execution : Selection , Flowchart , Management , Evaluation
      • Voice of the Customer (VOC) >
        • CTX (Critical to X) Quality
        • Kano Model
        • Different type of Quality Cost
      • Risk Analysis SWOT (Strength, Weakness, Opportunity, Threat)
    • Six Sigma Team Management : Types, Roles, Size, Stages & Life cycle >
      • Six Sigma Organizational Infrastructure Team Leadership >
        • Six Sigma Roles and owners process
        • 3 levels of business management process
        • Six Sigma Training: Black vs Green Belt
        • Overview of DMAIC : Key points
      • Six Sigma Team Tool: Facilitation & Groupthink
      • Nominal Group Techniques Multivoting Force Field Analysis Brainstorming
      • Diagrams : Affinity Tree PDPC Matrix Interrelationship Prioritization matrices Activity network diagram
      • The 4 Stages of Team Growth & Human factor: Forming, Storming, Norming, and Performing
    • Six Sigma: Define Phase : Outcomes & 6 Element >
      • Six Sigma Define: 1Define Problem & 2 Identify Customer
      • Six Sigma : Define : 3 : Identify CTQs ( VOC Kano Model )
      • Six Sigma : Define : 4 : Map Process 5 Refine Project Scope
      • Six Sigma : Define : 6 Update Project Charter ( PERT CPM Gantt Bar WBS)
    • Six Sigma: Measure Phase : Outcomes & 5 Element >
      • Six Sigma: Measure : 1 Identify Measurement and Variation
      • Six Sigma: Measure : 2 Determine Data Type
      • Six Sigma: Measure : 3 Develop Data Collection Plan
      • Six Sigma: Measure : 4 Measurement System Analysis & Data Collection
      • Six Sigma: Measure : 5 Perform Capability Analysis
    • Six Sigma: Analyze Phase : Outcomes & 4 Element >
      • Six Sigma Analyze : 1 Measuring and modeling the relationship between Variables
      • Six Sigma Analyze : 2 Hypothesis Testing
      • Six Sigma Analyze : 3 Failure mode and effects analysis (FMEA)
      • Six Sigma Analyze : 4 Analysis of Variance (ANOVA)
    • Six Sigma: Improve Phase : Overview & 6 Element >
      • Six Sigma: Improve Phase : 1 About Design of experiments (DOE)
      • Six Sigma: Improve Phase : 2 DOE Process variables & Analysis
      • Six Sigma: Improve Phase : 3 Design Selection Guideline
      • Six Sigma: Improve Phase : 4 : Lean 5S
      • Six Sigma: Improve Phase : 5 Poke Yoke
      • Six Sigma: Improve Phase : 6 Standard Work & Kaizen
    • Six Sigma: Control Phase : Overview & 3 Element >
      • Six Sigma: Control Phase : 1. Statistical Process Control
      • Six Sigma: Control Phase : 2. Control Chart
      • Six Sigma: Control Phase : 3. Other: Pre-control Technique, TPM & Visual Management
  • Lean Wiki
    • History of Lean & Guru’s >
      • Birth of Lean
    • About Lean, Value, Waste, Muda, Mura & Muri >
      • Overview Lean Tools, Techniques & House of Lean
      • Lean Excellence, Tools & Framework
      • Lean Framework 6 points, metric & Stability
    • Lean Team Setup : Structure, Meeting & Project >
      • Self Directed Work Teams (SDWT) , ACHIEVE TEAM SYNERGY , SQDCM, Teamwork Principles, Team Structure & Team Leader
      • The 4 Stages of Team Growth & Human factor: Forming, Storming, Norming, and Performing
    • Lean Process Mapping: Generic & Type >
      • SIPOC: Suppliers, Input, Process, Output & Customers
      • Lean Process Management , Excellence , Identification , Design & Mapping
      • Lean Process Mapping Symbols
      • How to Create a Simple Process Flow Diagram
      • Lean Value Stream Mapping, current, future & 3 type of work
      • Value Stream Mapping (VSM): About & 17 steps
      • Other Types of Process Maps & Pitfalls: Resources: iDef0, Document Map, Work Diagrams, Rendered Process Map
    • Lean Process Optimization , Andon System , Error Proofing ( Poka Yoke ) & Defect vs Errors >
      • Lean 5S System
      • Kanban : Benefits, Shapes of Inventory, Type, Operation & Sizing
      • Cellular Manufacturing: About, Benefits & 4 Dimensions of Cells
      • Heijunka, A 3 Thinking, Hoshin planning, Jidoka, Poka‐yoke , Kanban, Takt , Kaizen
      • Lean Kaizen (continuous improvement), Systems Thinking & Process Variability
      • Lean Visual Management & Visual Control
      • Lean Waste Detail: Eight Types of Waste
      • Line Balancing, Cycle Time, Takt Time, Assembly / Workload Balance & Man – Machine – Setup – Time
      • Single Piece Flow, Continuous Flow & Standardized Work
      • SMED Single Minute Exchange of Dies
      • Total Productive Maintenance (TPM): Preventive Maintenance Corrective Maintenance Inbuilt Maintenance
  • Blog
  • Contact