Previously we have discussed various ideas which can be considered for a Continual Improvement Project. Once all the ideas are identified, you need to rank these ideas. A total value for each project is calculated and plotted against an ease of completion number to decide which projects have the most value for the effort expended. The tool used to complete this technique is called as project prioritization matrix
- Prioritization will keep your focus on the high impact improvements. it is always advisable to keep the focus while attempting the improvements. Additional benefits include greater visibility and acceptance from the stakeholders. A carefully selected project can be a game changer with respect to the perception on the Continual Improvement in any organization.
- Prioritization helps you to rank potential projects by both their weighted benefits and their relative ease of completion.
- It also helps in reorder the ranking of projects if the weighting of the company’s strategic goals changes (such as, the last Quarter there will be very high focus on the Revenue and targets.)
How to prioritize ideas
- Identify a list of project selection criteria (For example Revenue, Cost, inventory customer satisfaction, etc)
- Develop a list of potential projects and enter in the left column of the table
- Assign weightage to the criteria on top of the list. A weightage can be given based on the impact like 0- No Impact, 1- Low Impact, 3- Medium Impact and 5 – High Impact).
- Using a team, develop a score for the criteria.
- You will get the Priority Number based on Multiplication of these two.
- You can order them according to the priority Number
- After a project prioritization matrix is created, you can easily update it by adding new potential projects and changing the weighting of the project values to reflect changes in organizational priorities.
Originally posted 2013-03-10 12:02:00.
We have discussed the General Ideas and Ideas from Issues earlier. Here is another trigger for you to look into ideas for Six Sigma Projects by function. If you are new in the continual Improvement Journey, these various classifications help you project identification and selection. Classifying ideas for Six Sigma Projects by function will help you to ignite those who have less time to look at general issues.
Few years back it was generally believed that the six sigma method is used for Manufacturing Industry is only. How ever, Many service and IT organizations have adopted this and saved tons of money. Even this method can be used to increase the process speed and lean out the process. You may take up the improvements in a step by step approach which can give you better clarity and improve the system.
Project Selection Ideas By Function
Six Sigma Project Ideas for Finance/Accounting function
Reduce the time taken to close the accounting books (cycle time)
Improve the forecast accuracy
Reduce balance sheet risk
Eliminate unstable customers and associated risks
Improve processing of payment to vendors/suppliers
Improve Days Sales Outstanding (DSO) — the average time taken by a company to collect payment from its customers
Reduce payroll process cycle time
Improve cash management processes
Improve payment/collection processes
Reduce electronic financial transaction costs
Reduce the cycle time of reconciliation
Reduce the procure to pay cycle
Standardize the accrual and deferral processes
Cycle time reduction in processing of Invoice generation
Reduction of cycle time in Purchase order generation
Six Sigma Project Ideas for Human Resources function
Reduce the turn around time to hire an employee
Reduce the time to process an insurance claim
Improve employee on-boarding and orientation processes
Reduce expenditures for recruiting firms
Improve hit-rate for successful hiring
Improve timeliness and the value of employee performance reviews
Improve training efficiency
Improve employee satisfaction
Identify and correct retention issues
Six Sigma Project Ideas for Sales function
Improve cross-sell opportunities
Reduce time required to enter sales orders
Reduce errors and rework associated with sales orders
Reduce customer credit worthiness cycle time
Reduce the number of “bad deals” that are processed
Improve the cycle time of the entire sales order to cash process
Increase repeat orders/customers
Six Sigma Project Ideas for Shipping/Receiving function
Improve on-time delivery of products to customers
Improve on-time delivery of goods to our facility from vendors
Improve documentation accuracy
Reduce line downtime due to shipping/receiving
Improve inventory control/rotation
Improve inspection processes
Reduce the space occupied by the inventory
Now for some of the ideas by Industry. This section can be used by linking the ideas to specific industry
Sis sigma Project Ideas for Information Technology Industry
Reduce network/server/application downtime
Improve process of logging-in to network from remote locations
Improve system reliability/uptime
Standardize computer loads for configuration and support productivity improvement
Six Sigma Project Ideas for Product/Service Design industry
Reduce time required to design a product or service
Reduce errors in design
Reduce production time
Reduce testing time
Six Sigma Project Ideas for Call Center Industry
Increase/decrease (depending on your business needs) average talk time
Reduce abandon calls
Improve employee knowledge
Reduce number of times customer is put on hold
Reduce Call drops
Improve resolution of queries
You may start resolving problems and one at a time. do not attempt a great improvement at once. In case you have to then pilot the solution and deploy horizontally.
Originally posted 2013-02-27 00:23:00.