As anyone involved in Six Sigma knows, selecting the right project is a critical component of project su

Selecting projects with just a few obvious inputs or simply selecting the squeakiest wheel are not alwa

Practitioners need a robust and reliable approach to 1) quickly determine whether the project is indee

Key Project Criteria

To build and use the criteria-based selection matrix, it is important to understand 15 key pieces of sele

1. Customer impact Will the successful outcome of the project have a material impact on customers

2. Process stability Is the process relatively stable? If the process is new, has it reached a stable leve

3. Defect definition Is the process defect well defined? If the project does not have a specific elemen

4. Data availability Is data available around the process metrics? If not, is it attainable? Rarely will al

5. Solution clarity Is the solution already known? If so, just do it and skip going through the DMAIC m

6. Benefits An appropriately vetted cost-benefit analysis should demonstrate the value of the projec

7. Impact on service quality Will the project contribute to enhancing overall service quality along the

8. Project sponsorship The level of project sponsorship is often the difference between project succ

9. Project alignment Does the project align with corporate strategic objectives? If not, the likelihood

10. Project timeline Can the project be completed within a reasonably short time period? A good be

11. Probability of implementation Practitioners should consider the probability of actually impleme

12. Investment Will the costs to fix the problem likely include large cash outlays or capital investmen

13. Team availability This takes into account the amount of time key team members have to suppor

14. Controllability of inputs Although this may not be uncovered until at least some data has been c

15. Process redesign Because these criteria are designed to limit project options to those that can be

Creating the Project Viability Matrix

Now that the 15 criteria are clear, it is possible to create the project viability matrix, illustrated in the t

Project Viability Matrix Criteria Descriptio Definite Number n Weighting No (1)

Mostly No Possibly (2) (3)

Mostly Yes (4)

Are customers (internal/ external) dissatisfie d or 1 defecting? Is the process relatively 2 stable? Is the specific defect (defined by customer) 3 known? Is data related to the defect available or collectabl 4 e? Is the solution not 5 obvious?

Are the expected benefits significant 6 enough?

Will service and/or quality be noticably improved 7? Does the project have Champion and sponsor 8 support? Is the project aligned with departmet or company 9 goals?

Can the project be complete d within 6 10 months? Considerin g the risk, is there a good probabilit y of implemen 11 tation?

Will the solution likely involve little or no capital investmen 12 t?

3X

Are the necessary team members available to support the 13 project? Is the ability to make change in the process largely in our 14 control? Will the solution likely not involve redesign of the 15 process? Weighted Scores

3 1 5.3 6

X 2.7 Total Score

Finding the Weighted Scores

Now it is possible to determine the individual weighted scores, as well as the total score. To find the in 1. Divide each weighting by 3 (e.g., a weight of 3 = 1, a weight of 4 = 4/3 or 1.3, etc.). 2. In each individual rating column, the X marking = 1

3. Multiply each X marking by its weighting (e.g., 1 x 1.3 = 1.3). 4. Find the sum of all X marks for each rating column. To find the total score: 1. Multiply each weighted score by its rating (e.g., 5.3 x 2 = 10.6), and sum these products. 2. Divide the sum of the products by the sum of the weighted scores (in this case, 45.4 / 16 = 2.8 ). T

What the Total Score Means

The total score will fall into one of three possible categories: Less than 2.0 The project is not a viable DMAIC project; it may be better to use another approach. 2.0 3.0 This is a possible DMAIC project; it will require further validation. Greater than 3.0 This is a viable DMAIC project.

Some questions to which the answer is a definite no will automatically disqualify the project from be

Related Posts
1. DMAIC Project Selection Using a Systematic Approach 2. Entry Criteria 3. Exit Criteria 4. Finding and Selecting Good Six Sigma Projects 5. Applying Criteria-Based Matrix to Prioritize IT Projects Tags: DMAIC project, Project Selection & Identification, VOC

Comments
Linda Lausberg 23-03-2010, 13:57

Intresting matrix. We intend to use it in our organization. To better understand it, can you please elaborate on following two topics : - why do you divide each weighting by 3 to calculate the weighted score ? - why should the solution not involve a redesign of the process ? Is it not possible to always use the DM Reply Edward 09-03-2011, 21:45 Why divide by 3 Reply

Forest 14-06-2011, 01:49 I guess its better by weighting 1/3,1,3,9,so we can zoom the difference easily. Reply

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a critical component of project success. If practitioners do not put enough effort into selecting the right opportunity for improvement, a p

he squeakiest wheel are not always the best methods. These strategies may work at times, especially in tackling the low-hanging fruit, bu

mine whether the project is indeed a good DMAIC project and 2) prioritize projects to ensure resources are allocated appropriately. A crit

o understand 15 key pieces of selection criteria:

e a material impact on customers (internal or external) perceptions of quality? A voice-of-the-customer (VOC) analysis with actual custom

s new, has it reached a stable level of performance? Note that stable does not necessarily mean that the process is performing as desire

ct does not have a specific element that needs to be fixed, it could become a victim of scope-creep and lose its focus. Avoid making the fi

not, is it attainable? Rarely will all the data needed for a proper process improvement study be waiting around to be analyzed, but it is im

d skip going through the DMAIC motions. Keep in mind, however, that lots of people may have lots of good solution ideas, and it still may

monstrate the value of the project, ideally using a discounted cash-flow model to calculate the net present value or similar cash-flow ana

ng overall service quality along the delivery value chain? It is not enough that end customers are satisfied, if the process has become mor

e difference between project success and failure. Strong sponsorship at an appropriately high level cannot be underestimated and is a pre

c objectives? If not, the likelihood of the project not getting appropriately funded and resourced increases (assuming it even gets the gree

ably short time period? A good benchmark to use in most Six Sigma projects is completion in six months. If the project cannot be successfu

he probability of actually implementing a solution to the problem (assuming a correct solution will be identified), taking into account the le

e cash outlays or capital investment? If so, the odds of meeting the requirements of a good Six Sigma process improvement project dimini

ey team members have to support this project, especially if they are also responsible for other day-to-day functions. Dedicated Green Bel

ntil at least some data has been collected, practitioners should make an assessment as to whether there are likely to be sufficient inputs

roject options to those that can be improved through DMAIC, project viability is low if the process being examined cannot be improved m

viability matrix, illustrated in the table below. Note the weighting column next to each of the criteria. Practitioners should use this colum

Definite Yes (5)

1 2.8

ell as the total score. To find the individual weighted scores:

= 4/3 or 1.3, etc.).

nd sum these products. es (in this case, 45.4 / 16 = 2.8 ). This number is the total score.

better to use another approach.

cally disqualify the project from being a DMAIC project, regardless of the overall score. For example, if the project has a known solution, n

not possible to always use the DMA(IC) method to understand and detail the business needs (AS-IS/TO-BE) and based on the outcome of

opportunity for improvement, a project can end in disaster, or create unnecessary work and complexity for the project team. tackling the low-hanging fruit, but a more structured approach is required when priorities are not so obvious.

are allocated appropriately. A criteria-based selection matrix helps practitioners standardize the project selection process, boosting its re

(VOC) analysis with actual customer input would be beneficial in answering this question.

he process is performing as desired (i.e., as per customer specifications). Also, is the process likely to undergo major structural or design c

lose its focus. Avoid making the final output (the big Y s) the measure of defect. For example, high costs, poor customer satisfaction rat

around to be analyzed, but it is important that key required data can at least be collected without having to spend an unreasonable amou

ood solution ideas, and it still may be worth going through the effort of identifying the true underlying root causes, rather than risk simply

ent value or similar cash-flow analysis of the project. Do not forget to include the soft benefits such as customer satisfaction and how tha

d, if the process has become more complex and unwieldy.

ot be underestimated and is a prerequisite for all Six Sigma projects.

ses (assuming it even gets the green light to proceed). If the project cannot be successfully completed within six months, the chances of it being a viable DMAIC project diminish.

entified), taking into account the level of acceptance or resistance by the organization or department. High cultural or organizational resis

ocess improvement project diminish because gaining the investment may be difficult.

ay functions. Dedicated Green Belts and Black Belts are essential to keep the project moving forward.

e are likely to be sufficient inputs (i.e., contributors to the output to be improved) that are both measurable and controllable. If there is lit examined cannot be improved much further without redesigning it.

Practitioners should use this column to establish the relative importance of each of the criteria (the weighting scale ranges from 1 = least

he project has a known solution, no Champion support or requires a redesign, using another approach to solve the problem may be best.

BE) and based on the outcome of the measure & analysis phase deside how to proceed ?

for the project team.

selection process, boosting its reliability.

dergo major structural or design changes in the near future? Process stability is important in accurately assessing the impact of improvem

sts, poor customer satisfaction rates or not achieving revenue targets can work as high-level problems to tackle, but are not ideal defect

g to spend an unreasonable amount of time, resources and effort.

oot causes, rather than risk simply fixing symptoms.

ustomer satisfaction and how that translates into improved retention and higher sales.

IC project diminish.

gh cultural or organizational resistance means the probability of implementation is low. Probability of implementation also will be influen

able and controllable. If there is little or no control over the inputs to the process, achieving the project objectives becomes daunting.

ghting scale ranges from 1 = least important to 5 = most important). After assigning a weight to each of the criteria, practitioners should g

o solve the problem may be best.

assessing the impact of improvements without the noise created by changes within the process.

o tackle, but are not ideal defect metrics. The defect metrics should be operational in nature. Examples of appropriate defect metrics in

mplementation also will be influenced by other factors, such as competing initiatives, significant organizational changes or changes in stra

objectives becomes daunting.

the criteria, practitioners should give an answer to each question about the project (1 = definitely no and a 5 = definitely yes).

es of appropriate defect metrics include cycle time, error rates, rework rates, first-time call handling percentage, straight-through process

ational changes or changes in strategic objectives.

d a 5 = definitely yes).

centage, straight-through processing rates, lead times and complaint rates (all little y s).