Time
9 hours 3 minutes
Difficulty
Beginner
CEU/CPE
9

Video Transcription

00:00
Hi, guys. Welcome to define phase objectives and deliver a bles annd Katherine Mc Iver. And today we're gonna understand objectives and deliver roubles identification in selection. So if you remember from our last module, we talked about our problems statement and our business case.
00:18
So we have What is the problem and why do we care
00:22
now when we're talking about our objectives and delivery, Bols, we're talking about what are we going to get out of it or what are we going to do about it? So objectives and deliverer herbal statements are the last piece of your project Justification. So you have this idea for this project
00:39
and you're ready to go to a sponsor and say, Yeah, let's do a project.
00:44
Um, you're going to need these three things problem statement, business case, and in objectives. What are you going to get out of it? Um, it's such the expectation for the outcomes of the project. So it's important to be methodical
00:59
when you talk about what it is that you want out of this project. Because that's where you're going to spend your focus. And when we get into our measure analyzing and Provo, I'm going to scold you and chide you if you allow your project to get off of that focus so
01:18
constantly coming back to
01:19
our problem statement and our objectives, and making sure that all of the work that's done on the project aligns with that so sets the expectations for the outcome of the project. It is much like your problem statement a living measure. Your business case isn't going to change much. Your department is what your department is.
01:38
Your problem statement is going to evolve as you learn more about your baseline metrics, so
01:45
the problem itself isn't going to change. But when we talk about, my customers were just satisfied because my pizza place keeps messing up their orders. 2% is much different than 20%.
01:56
When we talk about our objective statement, it's the same thing we're going thio finger in the wind, pick a number and then, as we do, our discovery in our defining our measure phases determine how feasible that number is, or that
02:14
So when we talk about writing an objective statement, you want it to be linked directly to the problem statement. So let's think through this. So if we say that our problems statement is related to customer satisfaction in my pizza place from the last module. What we're going to want is a objective statement
02:32
that increases customer satisfaction. If we say that the problem is related to cycle time,
02:38
then we want an objective statement that has some aspect of time in it. So you want to make sure that they're strongly correlated and that anybody can see the relationship between what is the problem and what do we want to do about it?
02:51
You want to be aggressive, a realistic, and that's that's like the most mixed messages I can give you.
03:00
I hate
03:00
that
03:01
at the point where when you are new and lean and six signal, you kind of have to guess what is feasible. Worse is not feasible. Um, this is really helpful to have conversations with your subject matter experts about So hey, you've been doing this process for a long time.
03:19
Um, what do you think is realistic and we decrease our scrap rate by 5%. Can we decrease it by 10%?
03:27
Um,
03:29
picking a number.
03:30
It can be tricky. So I've had
03:34
so conceptual e you want to pick a number because you just wanna have a starting point, and then you're going to discover more as you do the rest of your defined phase and into your measure phase. And especially when we get to this idea of internal benchmarking, that's where we're going to learn a lot about what is feasible with our process improvements.
03:53
But we're not there right now,
03:55
so
03:57
conceptually, it's great. We just we pick a number and we marched to it. In actuality, you need to know your sponsor's very, very well because I have, unfortunately been in situations where
04:11
lean 16. The facilitators have said things like, Oh, yes, we can increase your customer satisfaction by 50% and then you don't get there and this undermine Julin Six Sigma program is a whole, and I don't have great advice on how not to do that. Um, I tend
04:30
to like Thio under promise and over perform.
04:32
So if we I talked to some sneeze and we have some answers about,
04:38
could be 5% could be 10%. I'm going to want to shoot for the five. I'm going to want to declare the 5% and then shoot for the 10% because everybody's always happy when you over exceed.
04:49
In actuality, if you've under performed, there are larger conversations to be had, and not all organizations are responsive to those. So no, your organization Remember, we talked a lot about stakeholder analysis and when you are starting to estimate what you think this can be and then also how the positioning is
05:09
as it evolves.
05:11
Um, the other thing that you're going to want to do in your objective statement is note the types of benefits you can expect. So when I say types of benefits, there are
05:20
technically three types of lean six Sigma benefits. There are hard benefits. These are things that your finance Department is going to see in the bottom line. These were going to be your overhead. These we're going to be your raw materials. These may
05:35
maybe things like overtime. Then you're gonna get into your soft benefits. This is capacity. This is I have three employees working for me full time. But now the process only takes two and 1/2 employees full time so that other half of employees
05:53
those 20 hours a week, can be invested in making the organization better or cross training. Or maybe we can take on more work. Or maybe we're going to invest them in
06:02
doing more because we have more capacity so we can run the process more frequently. That's gonna be considered a soft or secondary benefit.
06:13
The third type is called a tertiary benefit. This is a benefit that cannot be quantified. So
06:20
if you remember in five us, we talked about how five s in your workplace makes employees happier. It is hard to quantify that. So employees having a better quality of work because we five us and they confined their tools and their workspaces clean everything every time they come in
06:40
is a church sherry benefit.
06:42
It is loosely reported. It is qualitative without the ability to measure behind it. So those air the three types of benefits you want to call them out
06:53
when we're talking about problems statements. Here's Here are some examples a Excuse me objective statement. A bad objective statement is this project will decrease cycle time, which will increase customer satisfaction.
07:06
Okay, so we got a few things. We know what we're gonna be measuring and why we want to increase it. the better objective statement would be.
07:15
The goal of this project is to decrease cycle time by 10% which will potentially result in a 25% decrease in customer complaints. So notice we now have taken customer satisfaction, which is an intangible to a tangible customer. Complaints.
07:31
This cycle time reduction will have an associated capacity increase as a secondary benefit.
07:38
So now we're also going to have 10% Maur employees because they're going to be spending 10% less time working on their process. So this is a much better objective statement. We know that our line in the sand is 10%. We know that we're going to be successful by our decrease in customer complaints, and we know that there's
07:56
also going to be this other benefit of employees having more capacity.
08:01
So when we talk about why we do an objective statement, the reason is because we want to know what the benefits from investing in this project as compared to all of the other ideas are remember that our objective statements are evolving and they can be
08:18
living documents. But this does require a conversation with the project sponsor. So remember the project sponsors is yet I'm gonna endorse you doing this. I see the problem. I see the business case, and this is what you want out of it.
08:31
If you come back and you're like, Hey, so I said 10% but really the best we're gonna get 4%. You need to have that conversation.
08:39
And it goes back to that stakeholder analysis and kind of understanding what the Plainfield looks like. So that's it for objectives and delivery, Bols. And I look forward to seeing you in our next lesson.

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Lean Six Sigma Yellow Belt

This online Lean Six Sigma Yellow Belt course teaches you how and where to apply the Lean and Six Sigma process improvement methodologies. Once completed, you will have the knowledge to pass the Six Sigma Yellow Belt certification exam.

Instructed By

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Kathryn McIver
Lead Instructor at Evidence-Based Management Association
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