Appropriate Lean Six Sigma Green Belt Project Proposal?

T

Thoops76

Hi All,
I have recently started training for a Lean Six Sigma Green belt certification within my Organisation. Im currently at the early stages i.e. Define / Measure and i am being introduced to tools such as SIPOC and process mapping.

As part of the training / certification i need to complete a Lean Six sigma project that has a defined ROI. One issue, the project that i have chosen to work on over the coming months will be very beneficial to our customers however, it is currently difficult to put a $$$ cost savings on the improvements that may be implemented.

I work in a lab within a large organisation. Customers submit material for analysis and indicate a "need date" for final results on the submission form. I recently pulled some data to compare the "need date" versus "completion date" and was very surprised to see that an extremely large percentage of jobs were completed days after the customers "need date" was due. On average the customers results were overdue by 4 days.

With this in mind it became clear that my Lean Six Sigma project would be based on streamlining the lab process and removing non value added tasks to ensure we meet and if possible exceed our customers needs.

Customers such as process engineers depend on analysis results to assist them in making decisions regarding the continued use of manufacturing equipment or whether it requires further investigation.

The big question. Is this appropriate for a Lean Six Sigma project proposal as i am currently unable to place a $$$ cost savings / ROI on possible process improvements?

As stated previously im a newbie to Six Sigma tools and methodologies so any help or assistance is extreemly appreciated.:thanx:
 
A

Al Dyer

Thoops76

Welcome,

Just a thought:

Could it be that the customer already knows that there is a "lag time" in your process between "need date" and "completion date" and adjusts accordingly?

Al...
 
H

hongtruong

Hello
Could you share some documents or some presentation that you have learned
Thanks
 

rob73

looking for answers
Surely removing NVA processes will save time, therefore it will have a monetary value, also freeing up this time will allow for more throughput increasing and your overall contribution to the company turnover.
Rob
 
T

Thoops76

Re Al: The customers may know that there is some lag time associated with our analysis process however, I was alarmed to see that over 80% of the jobs that we carry out are completed after the due date. I would rather be proactive about this issue rather than reactive.


The bottom line is “Is this appropriate for a Six Sigma project, even if it is extremely difficult to put a monetary value on the potential benefits that may be gained?


Maybe I am being a bit naïve but why do Six Sigma processes have to revolve around money. Its not all about money (Is it?) What happened to doing what's best for the customer???



Re Hongtruong: I cant share any documents due to I.P. Reasons.


Re Rob73: Thanks. Your opinion is similar to mine. ill forward your response to the finance department.:agree:
 
Last edited by a moderator:
A

Al Dyer

Re Al: The customers may know that there is some lag time associated with our analysis process however, I was alarmed to see that over 80% of the jobs that we carry out are completed after the due date. I would rather be proactive about this issue rather than reactive.


%80 Past Due?

Let's be proactive and consider that the customer might be unhappy %80 of the time. 6 Sigma might say you are doing it correctly, but the customer pays the bills. What is 6 Sigma to you, a title or a goal?

Forget the names (6 Sigma, Continuous Improvement, PPAP, Control.....) we put on what we do for a living. The idea is to make the customer whole and provide food on our plates.

Al...
 

Miner

Forum Moderator
Leader
Admin
From a six sigma perspective, this is an ideal green belt project. The $$$ requirement is unique to each company. Some only require that there be measurable benefit while others require $75k. Just focus on the process and use the tools that are appropriate for your specific situation. Don't try to use all the tools.

An MBB
 

rob73

looking for answers
At he end of the day all businesses revolve around one thing, making money, its what keeps our lovely world turning. Or maybe I am getting a tiny bit cynical in my passing years!;)
Rob
 
B

big_tj

Hi All,
I have recently started training for a Lean Six Sigma Green belt certification within my Organisation. Im currently at the early stages i.e. Define / Measure and i am being introduced to tools such as SIPOC and process mapping.

As part of the training / certification i need to complete a Lean Six sigma project that has a defined ROI. One issue, the project that i have chosen to work on over the coming months will be very beneficial to our customers however, it is currently difficult to put a $$$ cost savings on the improvements that may be implemented.

I work in a lab within a large organisation. Customers submit material for analysis and indicate a "need date" for final results on the submission form. I recently pulled some data to compare the "need date" versus "completion date" and was very surprised to see that an extremely large percentage of jobs were completed days after the customers "need date" was due. On average the customers results were overdue by 4 days.

With this in mind it became clear that my Lean Six Sigma project would be based on streamlining the lab process and removing non value added tasks to ensure we meet and if possible exceed our customers needs.

Customers such as process engineers depend on analysis results to assist them in making decisions regarding the continued use of manufacturing equipment or whether it requires further investigation.

The big question. Is this appropriate for a Lean Six Sigma project proposal as i am currently unable to place a $$$ cost savings / ROI on possible process improvements?

As stated previously im a newbie to Six Sigma tools and methodologies so any help or assistance is extreemly appreciated.:thanx:
Thoops76,

To determine if a potential project is an appropriate Six Sigma project, you can look for three things: 1) there is a problem - note that a problem may mean that the a process is not performing at the optimal level. 2) you do not know what is causing the problem - you may have a 'gut-feeling' but you are not certain for sure. 3) you do not know the solution to the root cause of the problem - this usually because the root cause is not known. So essentially, looking on what you had outlined, it seem to me you have all these 3 requisites, so i would say it is an appropriate Six Sigma project.

On the matter of costing benefits of the project, one approach would be divide the salary for a person who perform the function in minutes, then for every minute you save, that would reflect the savings for one employee. So, if you have more than one employee performing the function, you can see how much you are saving per minute for all the employees. Multiply that for a year and that would be the "savings" that the project will provide for the year.

Hope this make sense!
 
B

big_tj

At he end of the day all businesses revolve around one thing, making money, its what keeps our lovely world turning. Or maybe I am getting a tiny bit cynical in my passing years!;)
Rob
Rob, here is an interesting question that I saw; how would you answer it?
Q: The main reason why companies implement Six Sigma is:

a) To improve their processes
b) to increase their profits
c) to standard their processes
d) to increase customer satisfaction

Actually, this question was one on ASQ's Black Belt exam some time ago; it has since been removed (according to ASQ).
 
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