How to Identify Projects for Lean Six Sigma?

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How to Identify Projects for Lean Six
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Improving the performance of a business strategy
is integral for any organization that deals in
products or services. This blog revolves around
project identification and all the factors
involved, in relation with the Lean Six Sigma
methodologies. Six sigma is often used by
organizations to understand the demands of
customers, statistical analysis, management and
improvement of their business process. The need
of the hour is to improvise and improve your
process according to internal and external
factors, both. If you are a new to sigma world,
it is recommended that you pursue a complete Lean
Six Sigma Green Belt Certification and learn
everything you need in detail.
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Lets start with some basics! What is Project
Identification? Project identification, as the
name suggests means identifying potential
projects and then implementing Lean Six Sigma
methodologies according to the goals of your
business. It mainly depends on two factors
Internal and External. External factors denote
the threats and opportunities to satisfy client
demands, responding to market trends or tracking
the competitors activities. Whereas, internal
sources are related to the factors influencing
the project, within the organization. Such
sources become the base of a project and can be
used to further select which project would comply
with the Lean Six Sigma methodologies. After
project identification, selection of the
appropriate project that needs six sigma is the
next step of the process flow. Lets dive
straight right in! Project Selection Six Sigma
projects should positively impact Key Performance
Indicators related to areas of Customer,
Financial, internal business presses,
knowledge/education growth. People get
confused between other quality or process
improvement methodologies and Six Sigma but, it
is very different from the others. It demands
results. The outcome is conveyed by projects
that are tightly connected to customer demands
and business strategy. Over the years, Six Sigma
projects are combined together with project
management and business process improvement
practices. This further helps in selecting the
projects for Lean Six Sigma. A project is a
short-term endeavor accepted to create a unique
product, service or result. Process
Elements The provisional nature of the project
requires a fixed beginning and end. The end is
finalized when the projects goals have been
accomplished, when the project is dismissed due
to its objectives will not or cannot be met, or
when the project is no longer needed. Most
projects are taken to create a lasting outcome.
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The logical process flow as explained by Thomas
Pyzdek is as follows,

• Define the projects goals and deliverables.
• Define the current process.
• Analyze the measurement system.
• Measure the current process and analyze the data
  using exploratory and descriptive statistical
  methods.
• Review the current process and correct any
  threats found.
• Use SPC to perform a process capability study.
• Recognize and correct special causes of
  variation.
• Apply statistically designed experiments to
  improve the current process.
• Cultivate and implement an entirely new process
  that meets the projects goals using an Employ
  breakthrough strategy.
• Institute control and nonstop improvement systems
  and stop.
• Process Benchmarking
• Process benchmarking is one of the most important
  factors of the Project identification process.
  It is a method of comparing companys internal
  business processes and its performance measure
  with that industrys best practices.
• Generally, they are related with quality, time
  and costs.
• For example Cost of Poor Quality (CoPQ),
  Defects, Cycle Time, Overall Equipment
  Effectiveness (OEE), Productivity, and Cost per
  unit Cost.

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For example, a manufacturing company having an
Assembly unit benchmark its OEE as 85 as it is
Industrys best practice. Process Inputs and
Outputs The inputs signify the flow of data and
materials into the process. The processing step
includes all tasks required to effect a
transformation of the inputs to an output. The
results are the data and resources streaming out
of the transformation process.
Owners and Stakeholders A process owner is
responsible for managing a process in a project.
Their responsibility includes continuous
management and improvement of this process.
Understanding how a process interacts with the
upstream and downstream processes is what makes a
Process Owner the most effective at his
job. For example, a Sales Engineer is
responsible for responding to new Request for
Quotation (RFQ) or Request for Proposal (RFP) by
new customer. So he is process owner of the
business process of Sales. Stakeholders are
those People who are the end user of project or
product or any service by which they are getting
benefitted.
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For example The users of new ERP system are
stakeholders who are getting benefitted by that
ERP. Lean Six Sigma can turn out be a game
changer for you and your organization. Process
identification is a crucial part of the
methodology which might sound like a complex
topic and a blog wont be able to justify the
intricacies involved with it. This is why we
suggest you to complete your Lean Six Sigma
Green Belt certification. MindCypress will help
you with the training. Contact us
today! Resource https//blog.mindcypress.com/p/h
ow-to-identify-projects-for-lean-six-sigma