Chapter 9: Selecting the Right Projects

Teams can bring abundant knowledge of Six Sigma to the table, but if organizations don’t choose the
right projects, improvements won’t drive effective changes for the benefit of the bottom line and/or
customer satisfaction. Since Six Sigma works best when it is implemented as a company-wide culture,
project selection should work as an enterprise-wide function. This chapter covers a number of tools and
methods for brainstorming and selecting projects that are most likely to bring significant improvement
to processes and serve overall business goals.

Juggling the Right Amount of Projects

A critical part of Six Sigma success for organizations is knowing when teams reach maximum project
load. Even when organizations hire employees dedicated to process improvement, they can only sustain
a certain number of improvement projects without substantially reducing the positive outcomes of
those projects. While project work, including data gathering and analysis, might be handled by
employees committed 100 percent to improvement projects, teams usually have to engage with and
pull resources from regular staff members. An organization that juggles too many projects puts daily
output at risk. In seeking to improve processes, a company that selects too many projects at one time
could actually negatively impact quality.

No formula exists for how many Six Sigma projects a company should run at a given time, but a few well-
designed projects are more likely to make greater impact than many poorly designed, overlapping, or
unfunded projects. Organizations should only launch projects they can:

• Fund. Six Sigma projects take monetary resources, which means organizations must prioritize
based on financial criteria.
• Support with people resources. Six Sigma projects require work from employees at all levels.
Companies shouldn’t launch three projects at one time that draw heavily on IT resources or
attempt multiple, simultaneous projects that need input from the Director of Compliance on a
regular basis. Relying too heavily on resources for multiple projects can burn out employees,
decrease morale, impact quality, and impede work that is necessary to keep the business
running from day to day.
• Manage. Project teams require leadership; Six Sigma teams are usually run by Black Belts,
sometimes along with certified Project Managers. Since Black Belts are supported by Green
Belts who handle much of the data collection and analysis work, a single Black Belt can usually
manage more than one project at a time if needed. This is especially true for experienced Black
Belts who are not responsible for any type of daily operation. Even so, organizations with
limited Six Sigma experts on staff can’t launch dozens of projects without putting a strain on
those resources.

Enterprise-Level Selection Process

When companies are working to apply Six Sigma culture to the entire enterprise, executive leaders and
other decision makers should work directly with Six Sigma experts to identify improvement
opportunities and launch projects. Doing so lets leadership align project selection with organizational

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goals, ensure projects are organized in a way that matches resources, and keep a bird’s eye view of
improvement endeavors. Organizations can apply a five-step procedure for identifying viable Six Sigma
improvement projects.

1. Data-Based Review of Current State of the Organization

Organizations can begin with a high-level look at internal and external sources of information about
performance. Internal information might include complaints or issues raised by employees, existing
performance metrics or reports, financial reports, and quality reports. External sources include all of the
Voice of the Customer tools we covered in Chapter 5. In reviewing internal and external information,
organizations should ask:

• What types of things are customers or employees complaining about?

• Where is the organization falling short of benchmarks or competitor performance?
• What needs do customers have that the organization is not meeting?
• What needs might customers have in the near future that the organization is not yet able to
meet?
• What processes are outputting the most defects?
• What processes are known for the most rework?
• What are the slowest or most expensive processes in the organization?
• What are some obstacles keeping the organization from reaching its goals?

2. Brainstorm and Describe Potential Projects

Answers to the questions in step one become a brainstorming list for potential projects. What types of
things are customers complaining about? Perhaps surveys and feedback forms show customers
complaining about long shipment times, poor quality of products, or rude customer service. With just a
single question, an organization has a list of possible projects:

• A project to reduce the time it takes for customers to receive orders

• A project to increase the quality of products
• A project to create better customer service

Admittedly, the scope is enormous with these examples, so organizations would need to look for a bit
more detail. Why do customers think the quality of products is low? In Chapter 6, we covered the 5
Whys brainstorming method, and that method is relevant here. During the brainstorming process,
organizations and teams should repeatedly ask “Why?” questions to get a more granular look at project
possibilities.

For example, if a feedback form for a carpet installation company indicates that customers aren’t
satisfied with the service they receive, the team might ask “Why are customers dissatisfied?” Further
investigation into customer feedback might indicate that the customers are unhappy because carpet
edges are coming up shortly after the carpet is installed. Why is this happening? The short answer is that
something is wrong in the installation process. The organization might add “Improve carpet installation
process” to a list of possible projects.

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Creating a list of possible projects in this manner isn’t always a matter of a single brainstorming session.
As issues are raised, more information might be required to list possible projects, but if you gather the
right group of people for a few braining storming sessions, it’s likely someone already has that
information or knows some basic answers. Remember, the point of this exercise is to call out possible
areas for improvement, not validate assumptions or come up with solutions.

Once teams have a large list of possible projects, they should begin creating short descriptions that will
become the basis of step three. The descriptions also let teams quickly identify things that are not
actually problems or would not apply within an improvement project environment. Descriptions should
include answers to three questions:

• How is the issue painful to the customer, the employees, or the organization? In short, how
does the issue impede someone from getting what they want or need?
• What is the goal that would be accomplished with an improvement?
• Why should an organization address this issue now?

If this is starting to sound familiar, it’s because the answers to these questions create something similar
to, though slightly less formal than, the problem statements discussed in Chapter 6. Using the carpet
installation example, for example, the description might be:

Customers are not satisfied with carpet installation because edges are coming up within a few weeks of
installation. The poor edges are creating safety and aesthetic issues and increasing expense and rework
for teams who have to return to sites to address defects. The goal is to reduce the number of times
carpet edges come up by 80 percent. The organization should address the issue because it is costing
$20,000 per month in errors.

Some basic idea of what the team wants to do is provided, and leadership has a very real measurement
of why the improvement is important. Even better, the measurement -- $20,000 in additional costs each
month – can be compared to other project opportunities.

3. Apply Some Basic Criteria to Shorten the List

Once a list of possible projects is created, teams can apply some very basic criteria to remove projects
that are inappropriate, would not work with Six Sigma methodology, are not property scoped, or have
little likely return on investment. This step usually begins during the second part of step two, when
teams are creating short descriptions of possible projects.

First, teams can remove items from the list where there is no real pain point. If a significant difference
between desired state and current state doesn’t exist, then there’s nothing to improve. For example, if a
single employee complaint about the efficiency of a piece of software made it onto the initial list, a
company wouldn’t pursue improvements further if it turned out no one else was having the issue.

Second, teams can remove issues that have very obvious problems and/or solutions. Consider the carpet
installation problem: if the issue of edges cropped up in the last month and someone on the team
reviewing potential problems recently received an email about defects in edging materials from a carpet
vendor, the solution might be obvious. Perhaps the vendor sent notification that the materials in a
certain batch of carpet were faulty and provided instructions for a solution. In this case, action is
required on the part of the organization, but that action isn’t a Six Sigma project. We’ll talk more in

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Chapter 11 about the DMAIC process, but if a problem is already defined and a solution provided, you
don’t need to spend time going through the DMAIC phases.

4. Create Unique Business Criteria

After removing project ideas that don’t fit Six Sigma methodology, teams should create and apply
business criteria to further filter the list. Business criteria usually come in the form of expenses,
monetary gains, impact on customer satisfaction, and urgency. Some questions teams might ask include:

• How will the improvement impact revenue-facing measurements such as profit, orders, or
income?
• What savings will the improvement create?
• How is the problem trending? Is it becoming a bigger and more urgent issue quickly, or can the
organization operate with minimal impact without making an immediate or near-future
change?
• How much will the improvement cost?
• How many employees/employee hours will be required for the improvement?
• What resources are required for the improvement?

5. Use Business Criteria to Prioritize Project Lists

Using the business criteria, teams should prioritize projects and select projects from the top of the
prioritized list for immediate work. One of the best ways to prioritize projects is to create a selection
matrix with defined criteria and a numerical ranking system.

For example, using the example questions in step four, we might create the following list of criteria:

• Potential savings
• Potential cost
• Potential increase to revenue
• Ability to access resources needed

A matrix can be created using the criteria and a list of projects. Teams can then rate each project against
each criteria using a numeric scale. In the example below, we applied a scale from 1 to 10, with 1 being
the most negative and 10 being the most positive.

It’s important to note that in this example, the numbers aren’t associated with real-world numbers. For
example, when rating savings, a higher number just means a more positive expectation. In this case, the
positive expectation would be a high amount of savings. When rating costs, however, the higher number
(and more positive expectation) would relate to a project with a lower overall cost.

Access to
Savings Costs Revenue increase
resources Total
Project
1 8 9 10
1 28
Project 5 5 4 6 20
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 2
Project
10 2 2 2
3 16
In the table above, you can see that Project 1 has low expected savings, but the team also estimates it
will have a low overall cost, drive a high increase in revenue, and has easy access to resources. Project 3,
on the other hand, has a high expected savings, but negative ratings in all other categories.

To rank projects, add up the scores for all categories and order the projects from highest to lowest by
total score.

The Project Viability Model

Teams can choose to create their own criteria for a project selection matrix, or they can use a 15-point
viability model as defined below. One benefit of the project viability model is that it provides some
weighting, letting teams make some criteria more important than others. It also removes some of the
objective nature of the selection matrix defined in the previous section.

This model is based on 15 criteria, which are defined in the table below.

Criteria Definition

1. Sponsorship The project is likely to be sponsored at a high level. (For more

information on project sponsorship, see the team building information
in Chapter 10). Sponsorship increases the chance that teams will have
access to the funds and resources required for a successful potential
project.

2. Corporate alignment The goals of the project are aligned with the goals of the business.
Working on potential projects that aren’t aligned with business goals
can reduce business effectiveness.

3. Data Data is available or can be accessed so the team can design project
metrics. Without access to data, a Six Sigma methodology can’t be
applied. If data is excessively time-consuming or expensive to collect,
then the potential project is usually not the best choice.

4. Definition of defect There is a specific, well-defined defect or problem. Without a well-

defined defect, potential projects run the risk of scope creep.

5. Stability The potential process is stable and there are no expectations that the
process is going to be overhauled, redesigned, or changed in the near
future. There is usually no reason to spend time and money improving
a process that will drastically change soon anyway.

6. Customer The planned goal of the potential project would create a substantial
and positive impact on customer satisfaction or perception of quality.

7. Benefits The potential project has a strong cost-benefit ratio.

8. Timeline The timeline for a potential project is relatively short. Timelines for

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 most Six Sigma improvement projects are around 6 months, though
some do run longer. Longer timelines decrease the chance that an
improvement fits within the DMAIC methodology.

9. Solution The potential project purpose is to find a solution that is not already
known or defined. As we previously stated, if a solution is obvious, you
don’t need to run a project to find it.

10. Implementation is likely A solution identified and verified by the potential project is likely to be
implemented. If, for any reason, change is very unlikely within a
process, then going through Six Sigma improvement work is a waste of
resources.

11. Required investment The potential project requires a large investment of cash. Generally,
the greater the cash or capital investment required, the less likely a
project will be selected or a solution will be implemented due to cost-
benefit analysis.

12. Available Six Sigma The Black and Green Belts required for the project are available.
Resources

13. Inputs can be controlled For a Six Sigma process improvement project to be successful, at least
some of the inputs must be within control of the team or organization.
For example, a team can’t work to improve the quality of a part that is
provided wholly by a vendor.

14. Redesign The process can be improved as is and doesn’t need a complete
redesign.

15. Process quality is The improvement doesn’t negatively impact the quality of service or
improved/maintained products along the value chain.

Based on the above criteria, teams create a matrix.

No Mostly Possibly Mostly Yes

Weight (1) No (2) (3) Yes (4) (5)
Is there a sponsor or champion?
Do project goals align with corporate goals?
Is data available or accessible?
Are defects well defined?
Is the process stable?
Are there customer benefits to the project?
Are there company benefits to the project?
Can the project be completed within 6 months?

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Is the solution unknown?
Is it likely a discovered solution will be implemented?
Would a new solution cost little to no cash?
Are Six Sigma team members available for the project?
Can inputs in the process be controlled?
Can the process be improved without a full redesign?
Will the improvements maintain or improve quality
across the value chain?

Teams then apply a numerical weight to each criterion. Weight each criterion on a scale of 1 to 5, with 1
being least important and 5 being most important. For example, our team with the carpet installation
issue might create weights as follows:

Weight
Is there a sponsor or champion? 3
Do project goals align with corporate goals? 4
Is data available or accessible? 3
Are defects well defined? 3
Is the process stable? 1
Are there customer benefits to the project? 5
Are there company benefits to the project? 5
Can the project be completed within 6 months? 3
Is the solution unknown? 4
Is it likely a discovered solution will be implemented? 3
Would a new solution cost little to no cash? 5
Are Six Sigma team members available for the project? 3
Can inputs in the process be controlled? 5
Can the process be improved without a full redesign? 2
Will the improvements maintain or improve quality
across the value chain? 5

Next, teams should answer each question by marking a 1 in the relevant box on the grid; the answers
correspond with no, mostly no, possibly, mostly yes, and yes. The complete grid for our carpet
installation problem is featured below.

No Mostly Possibly Mostly Yes

Weight (1) No (2) (3) Yes (4) (5)
Is there a sponsor or champion? 3 1
Do project goals align with corporate goals? 4 1
Is data available or accessible? 3 1
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Are defects well defined? 3 1
Is the process stable? 1 1
Are there customer benefits to the project? 5 1
Are there company benefits to the project? 5 1
Can the project be completed within 6 months? 3 1
Is the solution unknown? 4 1
Is it likely a discovered solution will be implemented? 3 1
Would a new solution cost little to no cash? 5 1
Are Six Sigma team members available for the project? 3 1
Can inputs in the process be controlled? 5 1
Can the process be improved without a full redesign?
2 1
Will the improvements maintain or improve quality
across the value chain?

5 1

Once a matrix is completed for each project, teams must calculate and compare the score for potential
projects. These calculations are completed via the following steps.

1. Divide each weight by 3; a weight of 3 equals 1, but a weight of 5 equals 5/3, or 1.7

2. Convert each of the 1s listed on your grid to a weighted value by multiplying it by the converted
weight from step one. For example, the weight for the first question on the grid above is 3. We divided
3/3 to get 1. We would multiple 1 * 1 for the first row. The next row is weighted 4; 4/3 is 1.3. The
numbers have all been converted in the grid below.

No Mostly Mostly Yes

Weight (1) No (2) Possibly (3) Yes (4) (5)
Is there a sponsor or champion? 3 1
Do project goals align with corporate goals? 4 1.3
Is data available or accessible? 3 1
Are defects well defined? 3 1
Is the process stable? 1 0.3
Are there customer benefits to the project? 5 1.7
Are there company benefits to the project? 5 1.7
Can the project be completed within 6 months? 3 1
Is the solution unknown? 4 1.3
Is it likely a discovered solution will be implemented? 3 1
Would a new solution cost little to no cash? 5 1.7
Are Six Sigma team members available for the project? 3 1.3
Can inputs in the process be controlled? 5 1.7
Can the process be improved without a full redesign?

2 0.4
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Will the improvements maintain or improve quality
across the value chain?

5 1.7

3. Sum the numbers in each of the five columns.

No Mostly Mostly Yes

Weight (1) No (2) Possibly (3) Yes (4) (5)
Is there a sponsor or champion? 3 1
Do project goals align with corporate goals? 4 1.3
Is data available or accessible? 3 1
Are defects well defined? 3 1
Is the process stable? 1 0.3
Are there customer benefits to the project? 5 1.7
Are there company benefits to the project? 5 1.7
Can the project be completed within 6 months? 3 1
Is the solution unknown? 4 1.3
Is it likely a discovered solution will be implemented? 3 1
Would a new solution cost little to no cash? 5 1.7
Are Six Sigma team members available for the project? 3 1.3
Can inputs in the process be controlled? 5 1.7
Can the process be improved without a full redesign? 2 0.4
Will the improvements maintain or improve quality
across the value chain? 5 1.7
1.3 4.4 4.7 3.3 4.4

4. Multiply each of the summed weighted scores by the number at the top of the column. For example,
the sum of the column for the “No” answers is 1.3. Multiplying that by 1 equals 1.3. The other columns
are calculated as:

• 4.4 * 2 = 8.8
• 4.7 * 3 = 14.1
• 3.3 * 4 = 13.2
• 4.4 * 5 = 22

5. Add up the answers from the previous step. In this case, the total is 59.4.

6. Divide the sum from step five by the sum of the weighted totals from step three. In this case, 59.4 /
18.1 = 3.28

7. The answer from step 6 is the score for your project.

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Once you score each potential project, you can determine if it is a viable project within a DMAIC
methodology with the following key:

Score DMAIC Viability

< 2.0 Not viable for DMAIC

2.0 to 3.0 Possibility viable, but organizations should

validate further

Above 3.0 A viable DMAIC project

It should be noted that the 15-point matrix described above can only be used to determine if a project is
viable within a DMAIC structure. A process might still need to be improved even though it doesn’t fit
DMAIC methodology; in the case of a redesign, the DMADV structure might let Six Sigma teams
approach the improvement. The differences between DMAIC and DMADV methodologies, and how to
determine which method is best for a project, are covered more in-depth in Chapter 11.

Project Selection at a Process Level

The goal of a Six Sigma team is not to define appropriate projects at an enterprise level. A department
or team responsible for only a few processes might be seeking to make an improvement. In an
organization where Six Sigma is important to business culture, departmental leaders are likely familiar
with some Six Sigma tools and might even be Green Belts or Black Belts themselves. While these leaders
have daily responsibilities that are not Six Sigma related, they can bring Six Sigma thought processes to
their department.

Departmental leaders might want to identify potential opportunities to present to leadership. They
might also want to identify areas where they and their teams can work toward improvement
themselves. In some organizations, department leaders can run smaller versions of projects with the
guidance of on-staff Six Sigma experts – especially when such projects would require little in the way of
capital or resources.

Departmental staff can use all of the tools in this chapter to identify possible projects. Often, though,
they are close enough to the situation that they can identify possibilities for improvement without going
through brainstorming stages. If data is already present, departmental staff might use Pareto charts to
identify some areas where improvement would create results; they can then use the selections matrix to
validate those assumptions and prioritize efforts.

See for Yourself

Consider a problem or need for improvement in your own company or one you faced in a past work
experience. Practice completing the project viability matrix using the template below.

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 Weight No Mostly Possibly (3) Mostly Yes
(1) No (2) Yes (4) (5)
Is there a sponsor or champion?
Do project goals align with corporate goals?
Is data available or accessible?
Are defects well defined?
Is the process stable?
Are there customer benefits to the project?
Are there company benefits to the project?
Can the project be completed within 6 months?
Is the solution unknown?
Is it likely a discovered solution will be implemented?
Would a new solution cost little to no cash?
Are Six Sigma team members available for the project?
Can inputs in the process be controlled?
Can the process be improved without a full redesign?
Will the improvements maintain or improve quality
across the value chain?
TOTALS:
Score:

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