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Adding Value To Content Of Six Sigma Project Charters

Jun 6, 2008
A well-drafted charter is often the deciding factor for the success or failure of the project.

However, there are some other areas of consideration critical to the success of a Six Sigma project.

Does The Project Detract From Value Being Given To Customers?

With the existing set of processes, the company may be giving value to the customer. It may be based on the feedback of the customers, suppliers, company employees and other sources. The new project will be focusing on reducing waste, reducing costs, reducing errors thus leading to economic gains.

However, sometimes there is a possibility that the initiative being taken to cut costs may prove to be detrimental, when it comes to providing value to the customers.

Occasionally, cutting inventories, personnel, and product lines may bring down the organization's competitive edge. It is imperative to analyze if such cuts actually harm the competitive edge. It is also important to substantiate the claim that the project will not reduce customer value.

Sometimes, when multiple projects are undertaken without understanding the correlation between them, they may end up competing with each another. Thus, before planning projects, a proper analysis of anything that may undermine the value proposition to customers is necessary.

Such consideration will ensure that the project charter being developed forms a firm foundation for the project, and does not harm or detract from the value given to the customer.

Does It Add To The Value?

It is equally important to understand the extent to which value is being provided to customers. Though a project may not be detrimental, it is necessary to understand if it is really adding any value. An analysis is vital to understanding what the customer sees as a value addition to existing product quality.

There should also be adequate evidence to show that the value being added is important and gives a considerable value advantage. It should be determined if it enhances the value advantage or reduces the value variance that is affecting the company's share in the market.

It is necessary to know what the critical to quality (CTQ) elements are and their relevance to customers. It is also important that the company compares the effect of these CTQs in relation to its competitors. CTQ should be significant enough, or it may adversely cost the company compared to the improvement it initiates.
In the case of multiple projects, they should be within the scope of the organization or they may turn out to be wastes themselves.

Including these elements in the project charter will help the organization figure out the competitive value addition due to the project. Its value proposition will be responsible for bringing in potential customers and retaining existing ones.

A project charter which conveys clearly the effects on the competitive value, reduces the risk of adversely affecting revenues, market share and the competitiveness of the organization. It ensures a positive and value-added outcome.
About the Author
Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for six sigma professionals including, lean six sigma, black belts, green belts, and yellow belts.
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