Lean Six Sigma Green Belt

Certification Course
Project Identification
 Learning Objectives

By the end of this lesson, you will be able to:

List the steps for Six sigma project selection

Explain the need for benchmarking

Identify project stakeholders

Outline the importance of stakeholder analysis

 Do You Know

Q What differentiates well-performing organizations from

organizations that achieve breakthrough performance?

• Good infrastructure

• Learned professionals

• Ability to identify the right project opportunities

A
The ability to identify the right project opportunities that
drive the organization forward
Project Identification
 Project Selection

Identify Select the

Identify the Evaluate Review the
organizatio right
projects the projects project
nal needs project
 Project Selection

Identify
Identify the Evaluate the Select the Review the
organizatio
projects projects right project project
nal need

An organization needs
projects to improve and
develop its functional
areas and to serve and
meet customer needs.
 Project Selection

Identify
Identify the Evaluate the Select the Review the
organizatio
projects projects right project project
nal need

Identify projects
that are aligned
with the
organizational
need.
 Project Selection

Identify
Identify the Evaluate the Select the Review the
organizatio
projects projects right project project
nal need

Evaluate the project in the

following areas:
 Net present value
 Cost benefit ratio
 Internal rate of return (IRR)
 Opportunity cost
 Payback period
 Project Selection

Identify
Identify the Evaluate the Select the Review the
organizatio
projects projects right project project
nal need

The project which

meets the
organizational
requirement is
selected and initiated.
 Project Selection

Identify
Identify the Evaluate the Select the Review the
organizatio
projects projects right project project
nal need

The selected project

is reviewed to ensure
if it is aligned to
organizational goals.
 Benchmarking

Is compared to

Organization Industry Leaders

Benchmarking is performed heavily in DFSS projects.

 Benchmarking

Process
Benchmarking

Collaborative Financial
Benchmarking Benchmarking

Competitive Performance
Benchmarking Benchmarking Benchmarking

Functional Product
Benchmarking Benchmarking

Strategic
Benchmarking
 Benchmarking: Best Practices

Determine the objectives or scope of benchmarking

Set the standards and path to be followed at the initial stage

Reduce unnecessary effort and comply with the scope

Recognize the best in the industry to set a benchmark

Share the information derived from benchmarking

Process Elements
 Six Sigma Projects: Prerequisites

Is there an existing process?

Is there a problem in the process?

Is the problem measurable?

Does the problem impact customer satisfaction?

Does working on the problem impact profits of the

company?

Is the root cause of the problem unknown?

Is the solution unknown?

 SIPOC Model

 
Supplier Input Process Output Customer

Supplier is a person or an organization that provides inputs to the process concerned.

 SIPOC Model

 
Supplier Input Process Output Customer

Input refers to the information, material, or services that will be transformed in the process.
 SIPOC Model

 
Supplier Input Process Output Customer

Process refers to the set of steps that transforms the inputs into output.
 SIPOC Model

 
Supplier Input Process Output Customer

Output is the final product or service of the process.

 SIPOC Model

 
Supplier Input Process Output Customer

A customer is a person, process, or organization that uses or receives the output.

 SIPOC Model: Process Elements Interaction

+  + 
Supplier Input Process Output

Stable SIPs = Stable Output

Relations between SIPs and output provide a method to define possible cause-effect
relationships.
 SIPOC Model: Example

EXAMPLE

 
Supplier Input Process Output Customer

• Email request Receive Request

• Phone request
• Requester • Purchase Order
• Documentation • Requester
• IT Team • Updated Database
• Ticketing System Work Ticket • IT Team
• External Vendors • Completed Ticket
• Hardware
• Notifications
• Software

• Technical Resource Close Ticket

 Business Process Improvement: Challenges

  

Challenges:
• Multiple handoffs
• Management of the flow of products or services
Owners and Stakeholders
 Organizational Hierarchy

Stakeholder

Process Owner

Stockholders Customers Suppliers Management Employees Society

 Effects of Process Failure on Stakeholders

Stockholders Customers Suppliers Management Employees Society

Reduction in May seek May face delay May require Will receive May experience
perceived competitor’s in receiving cost cut-down diminishing pollution due to
value for the product and their pay or wages the activities of
company find legal non-payment the organization
recourse issues
 Importance and Relevance of Stakeholder Analysis

 Any change to a business process affects stakeholders

When objectives are not met, stakeholders and the organization are

negatively impacted

 There can be different reasons why a stakeholder may oppose the

change effort
 Key Takeaways

The main objective of Define is to define the objective of the

project.

The five steps for selecting a project are identify

organizational need, identify the projects, evaluate the
projects, select the right project, and review the project.

Benchmarking is the process of comparing an organization’s

business processes, practices, and performance metrics with
that of industry leaders.
 Key Takeaways

A business process has five elements: Supplier, Input,

Process, Output, and Customer.

The stakeholders are people who are affected by the

organization’s actions.

The process owner is responsible for the performance and

execution of the process.
Knowledge Check
Knowledge
Check Java House Coffee is comparing their products and services with a competitor. What
1 type of benchmarking is being conducted?

A. Collaborative

B. Functional

C. Product

D. Performance
 Knowledge
Check Java House Coffee is comparing their products and services with a competitor. What
1 type of benchmarking is being conducted?

A. Collaborative

B. Functional

C. Product

D. Performance

The correct answer is D

Performance benchmarking is about comparing an organization’s products and services with those of its competitors.
Knowledge
Check
Why should an organization use a SIPOC to document a process?
2

A. To document every detail of the process

B. To help with project selection

C. To understand the process at a high level along with its inputs and outputs

D. To see process flow

 Knowledge
Check
Why should an organization use a SIPOC to document a process?
2

A. To document every detail of the process

B. To help with project selection

C. To understand the process at a high level along with its inputs and outputs

D. To see process flow

The correct answer is C

SIPOC is used to document and understand a process at a high level and document the supplier, inputs, outputs, and
customers.
Knowledge
Check
Which of the following is NOT a requirement for Six Sigma Project?
3

A. Root Cause is unknown

B. Solution is unknown

C. Does not impact customer satisfaction

D. The problem is measurable

 Knowledge
Check
Which of the following is NOT a requirement for Six Sigma Project?
3

A. Root Cause is unknown

B. Solution is unknown

C. Does not impact customer satisfaction

D. The problem is measurable

The correct answer is C

The problem should impact customer satisfaction to be worked by Six Sigma principles
Knowledge
Check
Which of the following is NOT a requirement to evaluate a project?
4

A. Internal Rate of Return

B. Net Future Value

C. Payback period

D. Cost Benefit Ratio

 Knowledge
Check
Which of the following is NOT a requirement to evaluate a project?
4

A. Internal Rate of Return

B. Net Future Value

C. Payback period

D. Cost Benefit Ratio

The correct answer is B

Net Future Value a typical financial metric for project evaluation along with the other answer choices
Knowledge
Check Which of the following stakeholder is responsible for performance and execution of
5 the process?

A. Supplier

B. Process Owner

C. Management

D. Employees
 Knowledge
Check Which of the following stakeholder is responsible for performance and execution of
5 the process?

A. Supplier

B. Process Owner

C. Management

D. Employees

The correct answer is B

The Process Owner is responsible for performance and execution of his or her process