Scrap Reduction At EFD

Identify What Is Important

As outlined in the previous article, the first step in our Lean Six Sigma Improvements process is to identify a prospective project. The first thing you need to consider is the “Importance” or “Criticality” of the Project. Simply put, we must select and define a project that is critical to the satisfaction of both your customers as well as your business. Otherwise, there is no point in wasting time, effort and resources on it.

So, what defines the Importance or Criticality of a Project???

Remember the chapter on Basics of Six Sigma? We had briefly covered a concept called “Critical To Characteristic”. These are the characteristics of your process or product that are “critical to” their success.

For ex: From a Business Perspective you may want to concentrate on:

a. Low Defects

b. Shorter Cycle Times and

c. Low Cost

Whereas from a Customer Perspective he may want you to concentrate on:

a. Quality

b. Timely Delivery and

c. Price

These are the Critical To Characteristics for the Process/Product under consideration.

So, after identifying specific CTs, you must identify the business processes that control the performance of these business outcomes. In addition, the business leaders must identify the outputs of these critical business processes that are major contributors to the customer-focused CTs.

A Real Time Example:

Lets us try to understand more about these CTs with a real life example. Lets go back to our Pizza Delivery example we used in the chapter on Measuring Process Capability

Customer Side of the Story:

From a Customer’s Perspective below is what he would want:

1. Quality - Pizza’s must be delivered, hot and along with all accompaniments/sauces etc. A customer wouldn’t want to receive a cold pizza or a pizza with no sauces or drinks. Most importantly he would want to eat only the pizza he ordered. So, orders must not be mixed up

2. Delivery - Pizza’s must be delivered to the appropriate customer’s address and on time.

3. Price - The Pizza must be cost effective and comparable. If we charge Rs. 200/- for a pizza sold for Rs. 150/- by our rivals, then the customer will probably choose them over us. So, the pricing must be competitive

So, here - Our project ideas should be directly related to what is important to your customers.

To maintain a high-quality business, it’s essential to meet these requirements for the customer. The Pizza Maker that best meets these criteria will be the leading Pizza Maker in the city.

The Business Side of the Story:

On the other side, if you are the Owner of the Pizza Joint, what will be your priorities?

1. Quality - Pizzas must be of top quality. Customers must not complain about a cold pizza or an improperly cooked pizza. All orders must be processed fully and promptly

2. Delivery - Pizza’s must be delivered to the appropriate customer’s address and on time.

3. Price - Ingredients must be of high quality. They must be bought from vendors selling stuff at wholesale prices. Delivery orders must be clubbed as much as possible to minimize delivery effort and to conserve fuel

The whole idea is to provide the best possible service to the customer with the least amount of staff and overhead.

So, here - Our project ideas should also be directly related to what is important to your business.

Lean Six Sigma projects for the Pizza business would be aligned with these CTs. For any organization, the first step of project selection is to understand what is important to customers and to the business. Only after this are you ready to maximize

...