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Six Sigma Project Selection Criteria – An Objective Method for Identifying Key Six Sigma Business Improvement Projects

IP.com Disclosure Number: IPCOM000010092D
Original Publication Date: 2002-Oct-18
Included in the Prior Art Database: 2002-Oct-18
Document File: 4 page(s) / 74K

Publishing Venue

Motorola

Related People

Teri Savage: AUTHOR [+2]

Abstract

Current industry information related to the identification and selection of Six Sigma Business Improvement projects is vague and lacks a statistical foundation to adequately select and prioritize significant projects. The Global Telecom Solutions Sector (GTSS) Supply Chain Quality group developed a project selection criteria matrix that makes the identification, selection and prioritization of Six Sigma projects more objective and easier to validate. By adopting this matrix, key management driven (top-down) Six Sigma projects have been identified and approved by the senior management team. Initially, the return on investment for approved projects is estimated to exceed $5MM in annualized savings within the GTSS Supply Chain.

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Six Sigma Project Selection Criteria – An Objective Method for Identifying Key Six Sigma Business Improvement Projects

By

Teri Savage, Staff Quality Engineer, Black Belt, GTSS Supply Chain Quality,� Motorola Inc.

Dipti Gupta, Senior Quality Engineering Manager, Black Belt, GTSS Supply Chain Quality, Motorola Inc.

ABSTRACT

Current industry information related to the identification and selection of Six Sigma Business Improvement projects is vague and lacks a statistical foundation to adequately select and prioritize significant projects. The Global Telecom Solutions Sector (GTSS) Supply Chain Quality group developed a project selection criteria matrix that makes the identification, selection and prioritization of Six Sigma projects more objective and easier to validate.� By adopting this matrix, key management driven (top-down) Six Sigma projects have been identified and approved by the senior management team. Initially, the return on investment for approved projects is estimated to exceed $5MM in annualized savings within the GTSS Supply Chain.

KEYWORDS

Six Sigma, Black/Green Belt, Champion, Performance Excellence Scorecard, Performance Excellence Strategies, Likert Scale, Survey, DMAIC

GTSS Supply Chain Six Sigma Revitalization

The GTSS Supply Chain experienced significant growth in the recognition of Green and Black Belts between 2000 and 2001.� As a result of this growth, the organization embarked on renewing how to best utilize these belts in supporting projects that when implemented would provide significant impact to business results.� The renewal plan included the role of senior management teams to identify Six Sigma projects that were tied directly to their scorecard goals.

When defining the process for identifying projects, research on current industry practices and methodologies for selecting projects was conducted.� Research results provided broad and subjective guidelines for project selection. Because of the subjectivity and vagueness of the industry guidelines, the Supply Chain developed the Six Sigma Project Selection Criteria Matrix that provides an objective and concrete approach to selecting and rating Six Sigma projects.�

The Six Sigma Project Selection Criteria Matrix consists of five major criteria questions.� Each question has six responses with a survey rating of 0-5.� To maximize ease of use of the tool, all criteria were considered to have equal importance with no weighting factors applied.� The project score is calculated by summing the ratings for each criterion.� The rating score is used to determine the relative strength of the Six Sigma project.� All project scores are then evaluated against each other to determine final selection and prioritization of Six Sigma projects.� For a view of the project selection criteria matrix, refer to the appendix.

PROJECT SELECTION CRITERIA

Criteria 1: Is the project tied to a performance excellence scorecard goal or a core business strategy?� This question is to determine the...