Project Alignment

Question 1

Business Metrics

Answer 1

• what champion cares about - too broad for a six sigma project
• financial ratios, compliant metrics, final yield

Question 2

Primary Metric

Answer 2

• the project Y
• defines the defect of the project
• success will be determined by this
• defect rate reduction, cycle time reduction, material reduction

Question 3

financial metric

Answer 3

• tied directly to the primary metric

- measured in dollars, it converts project progress to financial savings

Question 4

consequential

Answer 4

• metrics that could move in negative direction while primary metric is being improved
• not the focus, but must be aware of

Question 5

soft savings

Answer 5

• improving cash flow and avoiding capital and cost investments
• Elimination of a future expense as to avoid buying new equipment to increase production when the current one is optimized and the target is reached
• To avoid paying a pollution fine through the improvement the performance of the anti-pollution equipment

Question 6

hard savings (bottom-line)

Answer 6

• cost reductions and profit increase
• Reduction in the consumption of fuel with regard to the previous year (a savings comparison can be made)
• A productivity increase with respect to the previous year

Question 7

Problem Statement

Answer 7

• clear explanation: what you’re working on and why
• should be able to answer these 5 questions:
  - what is the problem?
  - where does problem occur?
  - when or under what conditions does it occur?
  - what is extent of problem?
  - what is the impact of problem?

Question 8

a good problem statement does not:

Answer 8

• include the reason for the problem

- include likely solutions

Question 9

high level process map

Answer 9

• a chronological display of the most significant 4-5 steps in a process and provides:
• a structure for defining a process in a simplified, visual manner
• an overall view of an entire process
• helps validate project scope
• helps to keep team focused

Question 10

what does SIPOC start with?

Answer 10

high level process map - shows boundaries of project

Question 11

SIPOC

Answer 11

suppliers, inputs, process, outputs, customers

Question 12

what defines the defect?

Answer 12

the customer

Question 13

Goal Statement

Answer 13

• describe, in measurable terms, what success will look like when you’ve solved the problem
• must include primary metric
• must include a statement of the performance level that will satisfy your CTQ and the time frame in which you plan to implement the improvement
• improve (primary metric) from (baseline level) to (target level) by (a certain date)
• should be shorter than problem statement

Question 14

SMART

Answer 14

Specific, Measurable, Aggressive (yet achievable), RELEVANT, and Time bound