Proj Org Selection Defn

Project Organization,
Selection & Definition

Total Quality Methodologies in Engineering
INSE 6210
Zachary Patterson, Professor

Concordia Institute for Information Systems Engineering (CIISE)
20 September 2023
Last Class
• Wrapped up Six Sigma influences

• Principles of Six Sigma
• Six Sigma Projects and Organizational Goals
• Process Concepts and Variation
• Six Sigma Metrics
2
Today’s Class
• Wrap up Principles of Six Sigma

• Wrap up Six Sigma Metrics
• Six Sigma Problem Solving Methodology
• Lean Six Sigma
• Project Organization
• Project Selection
• Project Definition
3
Term Project
• Project Type A:
1. improvement of an existing process using
DMAIC methods and tools, or
2. design of a new product or process using
DMADV methods
3. Process you are familiar with and for which
you have data
4
Term Project
• Project Type B:
• Proposal for improving a process for a
company with which you are not working
• Imagine your team works for a company and
that you’ve been asked to develop a proposal
for a Six Sigma project
• Need to convince your supervisor to fund the
project
• Need to provide justification for the problem:
at least DPMO/EPMO
5
Term Project
• Project Type B continued:
• What steps would you take?
• What tools would you use in each of the steps?
• How would data be collected? What types of
data would you propose to collect? How many
samples? How many observations? How would
you analyze the data - what statistical methods
or tools, for example?
6
Term Project
• Project Type B continued:
• If you propose Control charts, what kind of
Control Charts would you use?
• How many people would you expect to work
on the project?
• Where would they come from in the
organization?
• How long would the project take? How much
would be the budget of the project?
7
Overview and Principles of Six Sigma
Six Sigma Methodology
Define Measure Analyze Improve Control
How will you

What problem are Why is the What do you
What is the extent ensure that the
you trying to problem propose to do and
of the problem? problem stays
solve? occurring? why?
fixed?
1. Understand
4. Identify what to 7. Identify performance 9. Generate possible 11. Institutionalize
customer & business
measure gaps solutions solution(s)
requirements
2. Complete high-level, 10. Prioritize & select 12. Replicate & share
5. Plan and collect data 8. Validate root causes
as-is process map solution(s) best practices
3. Complete project 6. Determine baseline 13. Celebrate &
charter performance recognize success
Additional Topics
Drawn from the “The DMAIC Roadmap” Advanced Innovation Group Pro Excellence 2018
When we left off…
• We had looked at the theoretical basis of the 3.4

dpmo metric…
9
Theoretical Basis
• Ensuring that process variation is half the
design tolerance while allowing the mean
to shift as much as 1.5 standard deviations
in either direction, resulting in at most 3.4
dpmo either above or below the tolerance
limits.
Sigma Level Calcs
• Excel formulas for sigma level:
=NORMSINV(1 – dpmo/1000000) + SHIFT (2.5)
Table 2.4 (Evans & Lindsay)

Example 2.6
• epmo for shipping orders 35,256

• Use Excel formula (2.6) to establish Sigma
level:
=NORMSINV(1-(35256/1000000)) + 1.5 = 3.31

Six Sigma in Use
• To give a sense of just how stringent a six
sigma level of quality is…
• Real-life 4-Sigma:
• No cellphone service 4 hours a month
• Real-life 6-Sigma:
• No cellphone service for 9 seconds a
month
Six Sigma Always?
• You don’t necessarily want Six Sigma for all

processes, all the time
• Depends on:
• Strategic importance of process
• Cost of improvement relative to benefit
Additional 6σ Measures
• Throughput Yield (TY)
• Units that have no non-conformances
• 35 units inspected with 6 nonconformances

Recall: Six-Sigma Metrics
• Nonconformance (defect or error) – any
mistake or error that is passed on to a
customer
• Unit of work – output of a process or
process step
• Nonconforming unit of work – one that has
one or more nonconformances
16
• Throughput Yield (TY)
• Units that have no non-conformances
• 35 units inspected with 6 nonconformances

(NPU = 0.171)
TY = e-0.171 = 0.843
• ~ 84 percent of units free of non-
conformances
• Proportion of nonconforming units is:
1 − 0.84 = 0.16.
• Rolled throughput yield (RTY)
• Proportion of conforming units that
results from a series of process steps
• E.g. 2.7 Process consists of 3 steps
• Step 1: TY of 97%
• Step 2:TY 95%
• Step 3: TY 99%
• RTY = 0.97 x 0.95 x 0.99 = 0.912
• 91% conforming output is produced
• Proportion nonconforming is 1 − 0.91 =
0.09
Principles of Six Sigma
Six Sigma Problem Solving Methodology
DMAIC
1. Define
2. Measure
3. Analyze
4. Improve
5. Control
• Each discussed as topic of future lecture

How will you

fixed?
1. Understand
customer & business
requirements
Additional Topics
Before DMAIC
• Project Selection
Define
• Describe the problem in operational terms
• (after the project has been selected)
• Drill down to a specific problem statement
(project scoping)
• E.g. “reduce variability of brush hardness”
• Identify customers and CTQs, performance
metrics, and cost/revenue implications
• What will be done, by whom, when?
Measure
• Understand causal relationships between
process performance and customer value
Y = f(X)
• Y = customer CTQs
• E.g. time to deliver bags from plane
• X = critical input variables
• E.g. baggage handlers, etc.
• Defines factors to be controlled/changed
• Sets stage for Control step
Measure
• Data collection key:
• What questions are we trying to answer?
• What type of data will we need to answer the
question?
• Where can we find the data?
• Who can provide the data?
• How can we collect the data with minimum
effort and with minimum chance of error?
Analyze
• Focus on why defects, errors, or excessive
variation occur
• Experimentation and verification to verify
Y = f(X) relationships
• Statistics and statistical thinking central to this
stage
• Goal: identify and understand root causes
Improve
• Improve the X variables to improve CTQs
• Idea generation
• Imagination!
• Brainstorming
• Evaluation and selection
• Implementation planning
Control
• Maintain improvements
• Standard operating procedures
• Training
• Checklist or reviews
• Statistical process control charts
Principles of Six Sigma
Lean Six Sigma
Recall:
6σ & Derivative Approaches
Problem 6σ Lean 6σ DFSS Other*
Nonconformance X
Efficiency X
Design or re-design of
X
process
Design or re-design of
X
product
Unstructured performance X
30
6σ & Lean 6σ
• Six Sigma most applicable to solving non-
conformance problems
• As companies began using Six Sigma,
realized that many “problems” were
efficiency problems
• These were assigned to Six Sigma teams
• Lean Six Sigma, merging of:
• Lean production
• Six Sigma
Lean Six Sigma
• …an integrated improvement approach to
improve goods and services and operations
efficiency by reducing defects variation,
and waste
• Addresses visible problems in processes,
e.g., inventory, material flow, and safety
• Six Sigma is more concerned with less
visible problems, for example, variation
in performance
• Lean principles have been absorbed into
Six Sigma
Lean Principles
• Lean Thinking:
• Focus on elimination of waste in all
forms
• Smooth, efficient flow of materials and
information throughout the value
chain…
• …for faster customer response, higher
quality, and lower costs.
Lean Principles
• Lean Thinking:
• Value-added activities add value to a
product by transforming it
• Non-value-added activities do not add
value
• Rework, waiting for tools or service
• Lean thinking considers nonvalue-added
activities as waste (muda)
• Seeks to reduce or remove non-value-
added activities
7 Types of Waste
1. Overproduction
2. Waiting time
3. Unnecessary transportation
4. Unnecessary processing
5. Inventory
6. Unnecessary motion
7. Production defects
Facilitating Lean Thinking
• Focus on measurement
• Continuous improvement (kaizen - 改善)
• Kaizen events:
• intense, rapid improvement process
• all resources of team dedicated to
event
• employees involved in all processes
• exhilarating
Lean Tools
• The 5S’s:
• Seiri (sort)
• Everything in its place
• Seiton (set in order)
• Easy to find and use
• Seiso (shine)
• Clean & tidy
• Seiketsu (standardize)
• Formalize procedures for consistency
• Shitsuke (sustain)
• Organize to keep process going
Lean Tools
• Visual controls
• Easy to know what’s happening
• Efficient layout and standardized work
• Layout of equipment optimized
• Pull production (kanban – JIT)
• production driven by upstream demand
• Single minute exchange of dies (SMED)
• Rapid changeover and setup
Lean Tools
• Total productive maintenance
• Maintenance so that equipment
available when needed
• Source inspection
• Inspection by process operators
• Continuous improvement (kaizen - 改善)
• Link to Six Sigma
Theory of Constraints (TOC)
• Theory supporting Lean Thinking
• Set of principles that focuses on:
• Increasing process throughput by
maximizing the utilization of all
bottleneck activities in a process
• Views throughput as amount of money
generated per time period through actual
sales
Theory of Constraints
• Constraint: anything that prevents
organization from moving toward its goal
• Constraints determine throughput
because they limit production output
to their own capacity
Theory of Constraints
• TOC focuses on:
• Identifying constraints
• Managing bottleneck and
nonbottleneck work activities
• Linking them to the market to ensure
an appropriate product mix
• Scheduling nonbottleneck resources to
enhance throughput
TOC Principles
Principles underlying theory of constraints

Table 2.5 Evans & Lindsay
6σ vs. Lean Summary
6σ Lean
Less visible problems (variation)More visible problems (e.g. inventory)
Efficiency by removing waste & process
Reducing errors and defects
improvement
Tools require advanced training Tools more intuitive
Both compliment each other
How will you

fixed?
1. Understand
customer & business
requirements
Additional Topics
Six Sigma DMAIC
Methodology
Define
Project Organization
Six Sigma Project
Management
• Project management:
• all activities associated with planning,
scheduling, and controlling projects
• Six Sigma projects:
• cut across organizational boundaries
• require coordination of many different
departments and functions
48
Six Sigma Project Teams
• Champions:
• Senior-level managers who promote and
lead Six Sigma deployment
• Master Black Belts:
• Full-time Six Sigma experts, coaches not
members of team
• Black Belts:
• Six Sigma technical analysts
• Communicate to champions
• Help implement after project completion
49
Six Sigma Project Teams
• Green Belts:
• Team leadership role
• Functional employees
• Trained in Six Sigma
• Part-time on projects
• Have completed a Six Sigma project
• Team Members:
• From functional areas
• Support specific projects
• Do basic analyses, gather data
50
Skills
• Two broad categories of skills required for
success
• Not everyone needs both
1. Technical skills
2. Soft skills
• Communication
• Behavioral skills
• Good bedside manner
51
Skills for Team Leaders
• Conflict management and resolution
• Dealing with disagreements among team
members
• Team management
• Ensure members remain focused on
project and timelines
52
• Leadership skills
• Guide work team while managing
upward as well
“But of a good leader, who talks little,

When his work is done, his aim fulfilled,
They will all say, 'We did this ourselves.’”
Lao Tzu, Tao Te Ching (verse 17), translated

by Witter Bynner.
53
• Decision making
• Good decisions, timely
• Communication
• Negotiation
• Securing resources
• Cross-cultural training
• Sensitivity to cultural differences
54
Skills for Team Members
• Communication
• Gather and share information across the
team
• Meeting management
• Shared decision making
55
Meeting Management
• Meetings central to a project
• For effective meetings:
• Gather and share information across the
team
• Shared decision making
• Meeting participation rules
56
Meeting Management
• For effective meetings (Peter Scholtes):
• Use detailed agendas with times
• Have a facilitator
• Take minutes
• Draft the next agenda
• Evaluate meeting
• “100-mile rule”
• no one called away unless emergency
57
Shared Decision Making
• People often have little experience with

this, but is important
• Powerful method: Nominal Group
Technique (NGT)
• Especially for problem identification
58
Technique (NGT)
1. All members asked to provide and rank
most important problems to work on
2. Record all problems or issues
3. Develop master list of problems
4. Generate and distribute to each
participant a form that numbers the
problems or issues in no particular
order
59
Technique (NGT)
5. Request that each participant rank the
top five problems or issues by assigning
five points to their most important
perceived problem and one point to the
least important of their top five
60
Technique (NGT)
6. The problem or issue with the highest
number is the most important one for
the team as a whole
7. Discuss the results and generate a final
ranked list for process improvement
action planning
61
Team Building
• Team building is tricky but critical
• Often need to overcome resistance to
reorganization
• How ensure success:
• Early involvement
• Open dialogue
• Good planning
62
Ingredients: Successful Team
• Clarity in team goals
• Improvement plan
• Schedules, mileposts, getting support
• Clearly defined roles
• Clear communication
• All members need to communicate clearly
• Well-defined decision procedures
63
Ingredients: Successful Team
• Balanced participation
• Established ground rules
• Group outlines acceptable behavior
• Awareness of group process
• Attention to the non-verbal
communication & group dynamics
• Use of scientific approach
64
Define
Project Identification & Selection
Types of Projects
• Top Down
• Tied to business strategy and aligned
with customer needs
• Bottom Up
• Black belts and master black belts
choose projects suited to the
capabilities of teams
• Advantages and disadvantages to both
• Mix between the two the best
66
Problem -> Process ->
Project
• Projects emerge from problems
• Problem:
1. deviation between what should be
happening and what is actually happening
2. important enough that needs to be fixed
• Figure out in which process the problem
originates
• Work on that process for your project
67
Project Selection Factors
• Factors to consider
• Impacts on customers and organizational
effectiveness
• Probability of success
• Impact on employees
• Fit with strategy and competitive
advantage
68
1. Financial factors:
• Measured according to:
• Project costs
• Impacts on revenues and market share
• ROI
69
2. Non-financial factors can also be important
• Scoring models can be used evaluate non-
financial factors
70
E.g. Project Selection Matrix
• Ideally, company has

ongoing portfolio of
projects to consider
Figure 3.1 Evans & Lindsay

71
Cost of Quality Analysis
• COQ:
• Cost of avoiding (poor quality), or cost
incurred as a result of poor quality
• Translates defects, errors, etc. into the
“language of management” – $$$
• 4 main types of cost to consider
72
Quality Cost Classification
• Prevention Costs
• Costs to keep non-conforming products from
occurring and reaching customers
• Quality planning costs
• Process control costs
• Information systems costs
• Training and management costs
73
• Appraisal Costs
• Costs associated with ensuring conformance
• Test and inspection costs
• Instrument maintenance costs
• Process measurement and control costs
• Internal Failure Costs
• Costs when non-conformance found before
delivery
• Scrap & rework costs, downgrading costs, etc.
74
• External Failure Costs
• Costs when poor-quality reaches customer
• Returns
• Product recall
• Product liability
75
COQ Analysis Tools
• Cost indices and matrices

• Like scoring models
• Sampling and work measurement
• Pareto analysis
76
Cost of Quality Matrix
77
Work Measurement
Sampling
• How much time a worker spends on quality
• Individual’s salary x worker time
78
Pareto Analysis
• Pareto analysis:
• Technique to ID the “vital few” from the
“trivial many”
• Pareto distribution:
• 80-20 rule
• Pareto diagram:
• Histogram of the data from the highest to
lowest frequency
79
Pareto Diagram
80
Pareto Diagram
81
Progressive Pareto
Analysis
82
Define
Project Definition
Project Charter
• Project definition culminates with “Project
Charter”:
• Formal mission statement that defines
project, objectives, and deliverables
• “Contract” between project team and
sponsor
• Sets expectations, goals and resources
• Defines problem to be addressed, customer
requirements, benefits, measures,
justification and timeline
84
Project Charter
85
SIPOC Diagram
• SIPOC - Suppliers, Inputs, Process,
Outputs, and Customers
• Defines boundaries of project
Suppliers Inputs Process Outputs Customers
• Broad view of process, who is the process

owner, how inputs are acquired, who the
process serves, and how it adds value
86
Readings
• Chapter 2 Evans & Lindsay

• Chapter 3 Evans & Lindsay
87

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Project Organization,

Selection & Definition

Zachary Patterson, Professor

• Wrapped up Six Sigma influences

• Wrap up Principles of Six Sigma

Six Sigma Methodology

Define Measure Analyze Improve Control

How will you

• We had looked at the theoretical basis of the 3.4

Table 2.4 (Evans & Lindsay)

• epmo for shipping orders 35,256

=NORMSINV(1-(35256/1000000)) + 1.5 = 3.31

• You don’t necessarily want Six Sigma for all

• 35 units inspected with 6 nonconformances

• 35 units inspected with 6 nonconformances

• Each discussed as topic of future lecture

Six Sigma Methodology

Define Measure Analyze Improve Control

How will you

Principles underlying theory of constraints

Six Sigma Methodology

Define Measure Analyze Improve Control

How will you

“But of a good leader, who talks little,

Lao Tzu, Tao Te Ching (verse 17), translated

• People often have little experience with

• Ideally, company has

Figure 3.1 Evans & Lindsay

• Cost indices and matrices

Figure 3.6 Evans & Lindsay

Suppliers Inputs Process Outputs Customers

Figure 3.7 Evans & Lindsay

• Broad view of process, who is the process

• Chapter 2 Evans & Lindsay

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