Selecting, Defining, and Scoping Successful Lean Six Sigma Projects (Part 2)

Written by Jennifer Christie, MBB, Senior Services Manager of Productivity Improvement  |  Part 2 of a Series on Lean Six Sigma

Lean Six Sigma offers a breakthrough strategy for solving problems and meeting customers’ needs. Most businesses have many project opportunities, but what makes a good project? How does project definition contribute toward success? Here, we will discuss some strategies for selecting and scoping projects so they are set up to succeed from the beginning.

A core tenet of Six Sigma is that projects are aligned with core business objectives and customer needs. Understanding the gaps between current performance and these targets is where you start. To discover this, you may look at KPIs, customer feedback, or where you are not meeting goals. Make a list of opportunities where targets or specifications are not being met. Then prioritize that list. A helpful tool can be a prioritization matrix or XY chart to help decide which problems to solve first. Estimating the ease of completion (difficulty level) and value to determine where to invest effort.

Example Prioritization Matrix:

Once you’ve identified which opportunities to pursue, the next step is to measure them. Is there already a metric in place? Can it be directly measured? Choosing the right metric is critical. It isn’t uncommon to discover that the problem isn’t being measured directly. In this case, it will be necessary to design and implement a data collection plan. While it may seem like a setback not to have readily available data, it is also a chance to design your data collection so that you can gather possible sources of variation. Consider these questions:

• Does my metric measure the problem directly?
• What other information can I easily gather at the same time (stratified potential causes)?
• How will I collect my data?
• How much data do I need?
• How can I make sure my data is representative?
• Is the measurement system reliable (…more on that in the next article)?

Once you have measured the problem, it is time to compare it to the desired state. Does it meet your customer needs and/or other specifications? How big is the gap? In other words, how capable are you of meeting your customers’ needs?  We will discuss Capability Analysis in detail in the next article. For selection and scoping, however, you should at least know where you are versus where you want to be.

Example of Process Exceeding Customer Specifications:

Now that you have a better picture of how well you meet your specifications, you can then quantify the value of the project. If the process is performed to standard, what would that be worth? Estimate the financial impact of the project. Consider costs such as scrap, downtime, materials, rework, labor, maintenance, shipping, yield, or any other cost associated with nonperformance. Consider also the softer benefits, which may be harder to quantify, such as customer satisfaction or employee morale.

You now have enough information to describe the problem. A problem statement is vital because it sets the stage for understanding and scope. A good problem statement describes the current state compared to the desirable. It identifies the value but does not include solutions or causes because those remain to be discovered and proven in the Analyze and Improve phases of the project. The problem statement gives a sense of magnitude and orients the project team to the location and/or time of the issue. Here is a simple example of a good problem statement.

Example Problem Statement: 

Dough deliveries to Baking Plant A should arrive at the baking ovens within 4.5 hours of the start of mixing. In the last quarter of 2025, 46% of deliveries were late, causing delays in production and machine downtime. Consistently meeting delivery targets will save approximately $172K annually in machine efficiency, scrap, and labor. Furthermore, it will reduce lead time to retail customers by at least one business day, yielding higher customer satisfaction.

Einstein once said that if he had an hour to solve a problem, he would spend 55 minutes understanding the problem and 5 minutes solving it. That is how important defining the problem is.

In addition to defining, setting the scope of the project is crucial. It determines the focus, who will work on the project, and ultimately, how long it will take. One of the best ways to define the scope is to draft a SIPOC. SIPOC stands for Suppliers, Inputs, Process, Outputs, and Customers. By identifying these at a high level, you can determine which areas the project will and will not include, who might be involved, and which products or services to include. To complete a SIPOC, start with the boundaries of the process by identifying 3-5 high-level steps:

Anything outside of these steps would be considered out of scope and not included in the root cause analysis. The rest of the SIPOC identifies the Suppliers of the process inputs and the Customers (internal and external) of the process outputs:

In the example above, you can see that the process in scope starts with mixing dough and ends when the ovens are loaded. The baking process is out of scope. This is important because it means the project team doesn’t need to investigate the baking process itself, focusing on the steps from mixing to loading. This targets the amount of mapping and analysis that the team must complete. It also identifies bakers and scheduling as customers who can help set specifications to shape the project objectives.

Customers generally care about three things: cost, quality, and delivery (timeliness). The key is to understand what is important about each of those. This is known as the “Voice of the Customer” and can be obtained through customer feedback, direct interviews, or directives. Identifying what is critical to customer satisfaction helps guide specification limits for the project as well as other aspects of the process that should be considered. For this example, the customer wants cut cookie dough delivered within 4.5 hours, but also wants the cookies fresh (after cutting) with minimal scrap, the correct recipe, and the correct size. While the project may focus on delivery time, the other satisfiers need to be considered, even though they may not be in the scope of the project.

Critical to Satisfaction Tree (example):

Quantifying the process performance compared to customer specifications, how it aligns with key business goals and values, allows everyone involved to understand the importance and purpose of doing the project.  The boundaries (part of the process) that should be included are clear, and you’ve set the project up for the first phase of Six Sigma: Define. The most important deliverable from the Define phase is the Project Charter. While it may be refined in future phases of the project, you have enough to draft it now. The charter should include the following elements:

• Problem Statement: A description of the problem and the gap between the desired state.
• Project Metric (Y): The targeted metric for the project, a direct measure of the problem
• Objective: The goal of the project, specifically how Y will change
• Benefits: The benefits, both financial and other, expected by completing the project
• Team: A list of the core team members [Champion/Sponsor, Project Lead(s) (Belts), and Subject Matter Experts]

Example Charter:

With a well-defined project, what else can you do to be successful? First, set a timeline with regular check-ins. It is best to scope the project to finish three to six months from its launch. Projects should be meaningful but having too large of a scope that drags on can stagnate a team. It may be necessary to break the project down into smaller projects. Completing projects, realizing results, and celebrating their success builds momentum in the organization and builds confidence. Regular check-ins with the Champion are also a key component of project success because they keep the project visible and allow time to remove barriers.

Second, consider who should be on the team and have a formal launch meeting. You can review the charter and make sure everyone is on the same page. This is an opportunity to agree on timelines and decide the frequency of meetings as well as roles.

Make the project visible. Publish the launch in your company’s communication and invite leaders and team members to gate transitions. At a minimum, the DMAIC (Define, Measure, Analyze, Improve, and Control) phases should have a formal review from Measure to Analyze and then at Close. A gate review from Analyze to Improve is also helpful to help communicate the actions that will be implemented. Gate reviews provide a means of communication and also help keep the project on track with a timeline. Finally, communication and recognition for a closed project is both motivating and helps to build enthusiasm in the continuous improvement culture.

Want to learn more? Review Part 1 of this series on Lean Six Sigma. The next article will discuss the Measure phase, how to select a good metric, and validate it. In the meantime, please visit the MEP website for more information on our Six Sigma programs. Our experienced team is ready to help!

 

Writer: Jennifer Christie, 317-275-6810, jennchristie@purdue.edu