1. Project Proposal Summary


Project Name


Suitability as Six Sigma Project


Improvement of Operations


Decrease in Cost


Ranking


1. Online Six Sigma Training Program


Small project orientation


Result Orientation


Systematic Skill-driven method


Continuous organisational learning supports efficient decision-making of managerial and frontline employees.


Decrease cost from mistakes or delays in operations as well as in using cost-effective Internet training tools.


1


2. Coding Performance Improvement Project


Small project orientation


Result Orientation


Systematic data-driven method


Efficient coding enhances computing efficiency to provide accurate and reliable information for decision-making and evaluations.


Decrease cost through computing efficiency and accuracy.


2


3. Web Site Redesign Project


Small project orientation


Result Orientation


Systematic data-driven method


Redesign improves linkages between the company and clients since it serves as an important point of interaction with clients.


Contribute cost-effectiveness by optimising the web site channel.


4


4. Wireless Technology Project


Small project orientation


Result Orientation


Wireless technology would ensure real time intra and inter communications.


Reduce costs of delays by speeding up real time communications necessary in effective decision-making.


5


5. Supporting Office Project


Small project orientation


Result Orientation


Outsourcing data entry allows members of the organisation to focus on other aspects such as creativity and innovations.


Reduce cost of labour hours allocated to data entry.


3


 


            Five projects constitute the Six Sigma strategy implementation proposal for the company. These projects cover different areas to ensure organisation-wide and long-term improvement. When implemented as complementary projects, this should contribute to the enhanced efficiency of the company in terms of improved results and greater cost reduction.


            The first project involves the online Six Sigma training of employees to enhance their skills in directing efforts toward the minimisation of mistakes and delays by developing efficiencies in processes, systems and relationships. Through online Six Sigma training, a change to an efficiency-drive value system would allow the organisation to decrease cost by spending on a cost-effective training venue or tool. This ranks as the top project because it represents the highest cost-saving result, encompassing effects, and long-term impact.


            The second project covers coding performance improvement project to minimise the cost involved in developing large computers by enhancing the efficiency of existing large computers to support the computer needs of the company and divest the necessity of developing more supercomputers. This project ranks second since it constitutes another key area of efficiency change that contributes effectively to cost-savings. This project targets system efficiency.


            Third project involves the redesign of the company’s website to integrate it with emerging client needs and developing company objectives. By doing this, the company should be able to connect more with new and existing clients to achieve mutual goals. This targets client needs. It ranks fourth because of its lesser cost reduction contribution although it contributes to the improvement of operations in terms of developing linkages with existing and potential clients.


            Fourth project targets communication efficiency. The company is a multi-national firm with operations across the globe. By investing on wireless technology, the company ensures that it is able to integrate its global operations to ensure consistency in operations. Real time communications adds to efficiency by making it easier to receive and obtain updates from the different business units or the different people in the field. This ranks fifth because of its lesser cost-saving contribution although it offers linkage benefits.


            The fifth project is supporting office project by outsourcing data entry functions in countries with low labour costs. Apart from cost savings on labour, the company should be able to rationalise its organisational structure to focus on innovativeness and creativity. This project not only minimises cost but it also contributes to operational outputs. This ranks fourth because of its important cost-saving and operational effectiveness contributions.


2. Project Screening Matrix (Multiple-Project Screening Matrix)


 


            Project screening matrix shows the relative ranks and scores of the different projects based on the four criteria of cost reduction, efficiency, increase in clients, and skills improvement. The results of the matrix compare the different projects in terms of the criteria to determine prioritisation. Higher ranking indicates the higher degree of expectation that the project would facilitate the achievement of the criterion and lower ranking pertains to the lesser degree of expectation that the project would achieve the criterion. Since all criterion used are necessary in the achievement of the Six Sigma objectives of the company, the higher total ranking should indicate the project that would provide solution to the problems that the company wants to solve through Six Sigma projects.


            The table below shows the comparative ranking and scores of the different projects in terms of the criteria. The higher weight given to a criterion indicates the level of importance of the criterion as an expectation from the projects. This means that cost reductions constitutes the most important benefit expected from the projects followed by efficiency, skills improvement and increase in clients. The weight also constitutes the determination of project prioritisation.


 


Project 1


Project 2


Project 3


Project 4


Project 5


 


Weight


R


S


R


S


R


S


R


S


R


S


Reduce Cost


4


4


1


4


16


2


8


2


8


4


16


Efficiency


3


4


12


3


9


2


6


3


9


4


12


Increase Clients


1


1


1


1


1


4


4


1


1


1


1


Improve Skills


2


4


8


1


2


1


2


1


2


2


4


Total                     


13


22


9


28


9


20


7


20


11


33


 


            The bar chart below, on project ratings, indicate that Project 1, 2 and 5 involving the online Six Sigma training of employees, coding performance improvement, and supporting office project have the highest propensity of ushering cost savings for the company. Project 1 and 5 are also able to deliver fully, efficiency for the company, followed by Project 2. This means that the se projects constitute priority areas. However, in determining a single project that would provide the company with the best combination of benefits, the bar chart below on project scores indicate that Project 2 and 5 affords the company with the greatest benefits. Since the priority is cost reduction, then Project 2 provides the best opportunity for achieving this objective because it focuses on cost minimisation together with efficiency.




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



 


3. Coding Performance Improvement Project Proposal


Project Description


            Improving coding performance involves writing and testing new computing programs together with the debugging or troubleshooting of existing programs that have remained important to the operations of the company. Computing programs to be developed should ensure that their application exhibit the desired behavior or outcomes intended by the company such as data organization, analysis and transfer to support policy and decision-making whether at the level of the business units or company-wide level. 


Expected Results


            Technical results cover the removal of any bugs or problems in the programs used by the company in order to prevent mistakes as well as the enforcement of regular testing and checks of computing programs to ensure efficiency. Other non-technical results include the widespread use of computing programs by the company in support of operational objectives. Overall, cost savings come about from minimised mistakes and bugs together with easy navigability. Efficiency arises when managers and employees effectively use computing programs.


Activities/Duration/Cost in the Strategic Plan


Activities


Resource Needs


Plan of Action


Duration


Cost


1. Checking of Computing Programs


technical expertise


Internal experts


Months 1 and 2


£30,000


2. Debugging of Computing Programs


technical expertise


Internal and/or external experts


Months 2 and 3


£50,000


3. Design/Writing of Proposed New Programs


technical expertise


Internal and/or external experts


Months 2 and 3


£40,000


4. Testing of Debugged Programs


technical expertise/testing participants


Internal experts/employees/managers


Months 4 and 5


£20,000


5. Evaluation of Applications


technical expertise/testing participants/actual users


Internal experts/employee and manager feedbacks


Months 5 and 6


£10,000


 


            The project requires six months for completion. Timing and effective results with high precision constitutes the requisites of a bigger project on the implementation of the new coding process. All primary activities should be accomplished within five months to give way for assessments and readjustments.


Cost


Expenses


Amount


1. Technical Tools


£50,000


2. Internal Technical Expertise


£55,000


3. Outsourced Technical Expertise


£30,000


4. Internal Expertise during the Evaluation


£15,000


 


            Bulk of the budget goes to technical expertise, since this is needed in assessing the utility and salience of existing computing programs, determining problems experienced in existing programs, debug these programs to ensure efficiency, and develop an effective means of integrating existing and new computing programs to develop an improved coding system. Technical tools also use up one-third of the budget. Cost-benefit analysis shows that while the company expects to incur a total of £150,000 for the initial project and an additional £350,000 for the implementation of the new coding system, expected benefits amount to £2 million during the first years followed by £.5 million for the succeeding years. This means that during the first year, all expenses have already been covered.   


4. Responsibility Matrix


            The team of eight involved four full-time and four part-time or consulting members, with each member contributing different expertise and skills to the design of the new computing system. Areas covered include hardware and software expertise, networking knowledge and experience, systems administration, program design, and program troubleshooting. Members of the team cover these different areas so that they should be assertive in contributing their opinions. However, the people in charge of systems administration and troubleshooting should also be open to opinions since these people handle responsibilities encompassing different areas requiring their integrative skills.


            Name


Responsibility


Status


Background


Personality


Sandy Schultz


Check, upgrade and set-up hardware requirements


Full-time


Hardware Specifications


Assertive


Chuck Williams


Check for software bugs and recommend upgrades


Full-time


Software Programming


Assertive


Beth Collins


Determine hardware and software performance compatibility


Full-time


Systems Administration


Assertive but Accommodating of Opinions of Suggestions


Steve Whittaker


Assess and recommend improvements in the Current Network and LAN architecture


Full-time


Systems Networking


Assertive


Larry Wilson


Recommend customised programs for the company


Consulting


Program Design


Assertive


Mike Burton


Recommend customised programs for the company


Consulting


Program Design


Assertive


Sarah Smith


Determine potential problems in current or recommended computing systems


Consulting


Program Troubleshooting


Assertive but Accommodating of Opinions of Suggestions


Norah Livingston


Determine potential problems in current or recommended computing systems


Consulting


Program Troubleshooting


Assertive but Accommodating of Opinions of Suggestions


 


5. Scope Statement


            On its own, the coding performance improvement project is limited only to the development of the computing system. This means that it does not include other factors such as the development of the skills of the company or meeting consumer needs directly. However, the project could influence these indirectly when the new computing system is able to allow employees to achieve higher productivity levels in terms of products and services at a lower operating cost due to the minimisation of delays, mistakes or system glitches.


1. Project Name


Coding Performance Improvement Project


2. Project Description


Assess and improve the existing computing system as a Six Sigma strategy.


3. Scope Inclusions


A. Goals and Objectives


B. Requirements


C. Deliverables


The project should bring about cost reduction on the computing system and efficiency in terms of providing accurate bases for decision-making.


Expenses of £150,000 and £350,000


Reduction of as much as half of current expenses on the computing system and increased productivity in terms of revenue growth by at least 10 percent


4. Scope Exclusions


A. Goals and Objectives


B. Requirements


C. Deliverables


The project does not directly target development of computing skills of employees or improvement in client relations.


Employee training especially on the new computing system and improvement of service and service delivery venues


Efficient use of the improved computing system resulting to outputs double the existing levels of productivity and the development and growth of the company’ client base.


 


6. Work Breakdown Structure


Level 1


Level 2


Level 3


 


Preparation


Briefing 


Introduction of Group Members


Expectation Sharing


Sharing of Expertise & Background


Overview of the Project


Six Sigma Training


Scheduling of training before commencement of work


 


 


 


Tasking


Responsibility Determination and Assignment


Work Coordination


Selection of Modes & Channels of Communication


Sharing of names, work and home contact numbers, e-mails especially for the consultants


Scheduling


Meeting schedules, availability schedules


 


 


Work Performance


Resource determination & procurement


Hardware, software, systems, processes, tools, expertise, experience


Productivity and performance


Daily and weekly outputs, output evaluations


Adjustments of Tasks


Re-assignments, merger or switching of tasks as necessary


Work Integration


Consultations, endorsement of finished task to the next person in charge of the next task, development and shifting of working sub-teams


 


 


Assessment


Task completion evaluation


Comparison  with goals and objectives, feedback from project team members


Project effectiveness evaluation


Comparison  with goals and objectives, feedback from various departments of the company


Performance evaluation


Comparison with expectations, feedback from team members


 


            There are four primary tasks involved in the completion of the project, which are group formation, project preparation stage, tasking, work performance, and evaluation. Under these four major tasks are second level work constituting details of the first level tasks. Second level tasks are further detailed into specific work that needs to be done from the preparation stage until project completion.


7. Process Breakdown Structure


Process


Elements


Process Activities


 


Consultant Contracts


Negotiation Clarification


Delivery


Assessment


Negotiations for service-delivery, determination of the scope and limits of the consultation services as well as terms and conditions, bidding for the price, transfer of expertise and skills, payment upon satisfactory completion 


 


 


 


 


Resource Management


 


 


Determination


Selection


Prioritisation


Procurement


Allocation


Use


Determine all resources needed from the commencement until the completion of the process, in case of competing resource area needs select the best resource to invest in, prioritise resource needs especially with a limited budget, procure the selected and prioritised resources, effective allocation or spread of resources to meet various objectives, and optimised utilisation of resources to achieve the greatest possible result with available resources


Assessment


Assessment Measures


Period of Assessment


Scope of Assessment


Sources of Information


Analysis


Identify the assessment measure required for various areas to be evaluated, specify the period and scope of the evaluation, gather information from all possible sources, analyse information using the measures to determine whether the variable being evaluated has achieved the intended or expected results.


 


8. Linking of Structures


            The work breakdown structure and the process breakdown structures can be linked to allow one project manager to handle both structures by considering two perspectives in the completion of the projects, with the first perspective focusing on the tasks or work that need to be accomplished while the other perspective looks into processes that need to be fulfilled. In a way, the process breakdown structure constitutes details of the work breakdown structure. One cannot be separately management from the other structure. As the different levels of work unfold, processes also happen.



 



 


           


 



 


 


 


 


 


 



 


9. Gantt Chart and Network Diagram


 


Task


Task Duration


Dependencies


Milestones


 


Preparation


Briefing 


One day


Non-approval of the project


Go signal from management to commence the project


Six Sigma Training


Two Days


Lack of common schedules


Presence of black belt trainer


 


 


 


Tasking


Responsibility Determination and Assignment/


Work Coordination/


Selection of Modes & Channels of Communication


One Day


Lack of cooperation and Agreement of team members


Inclusion of the targeted members of the team


Scheduling


One Day


Interference of other commitments especially the consultants


Determination of common schedules


 


 


Work Performance


Resource determination & procurement


One Week


Absence of all team members, lack of supplier networks


Key resources and resource suppliers


Productivity and performance


5 Months


Natural calamities and uncontrolled external circumstances such as economic downturns  as well as completion of regulatory and legal requirements


Supervision to direct all efforts towards goal fulfilment


Adjustments of Tasks


As frequently as needed within the Project Duration


Approval of top management


Non-resistance or cooperation of the team members


Work Integration


5 Months


Breach of contract of consultants in not complying with their task assignments


Cooperation of team members in providing information and contribution to task completion


 


 


Assessment


Task completion evaluation


One Week


Interference by non-members of the project team


Completion of the task


Project effectiveness evaluation


One Week


Interference by non-members of the project team


Achievement of goals


Performance evaluation


One Week


Interference by non-members of the project team


Pre-determination of task expectations


 


Critical Path Analysis


 


 


Month 1


Month 2


Month 3


Month 4


Month 5


Month 6


Preparation


Briefing


 


 


 


 


 


Six Sigma Training


 


 


 


 


 



 


 


 


Tasking


Responsibility  Determination and Assignment/


Work


 


 


 


 


 


Work Coordination


 


 


 


 


 


Selection of Modes & Channels of Communication


 


 


 


 


 


Scheduling


 


 


 


 


 


 


 


 Work Performance


Resource determination & procurement


 


 


 


 


 


Productivity and performance


 


Adjustments of Tasks


 


Work Integration


 


 


 


Assessment


 


 


 


 


 


Task completion evaluation


 


 


 


 


 


Project effectiveness evaluation


 


 


 


 


 


Performance evaluation


10. Organisational Breakdown Structure


 


 


 


 


 


 


 


 


 



 


11. Spreadsheet on Project Cost


 


Employee Name


£/hour


hours/week


no. of weeks


Gross Pay


Six Sigma Training


Total Cost


Sandy Schultz


25


20


26


13000


500


13500


Chuck Williams


25


20


26


13000


500


13500


Beth Collins


25


20


26


13000


500


13500


Steve Whittaker


25


20


26


13000


500


13500


Larry Wilson


25


7


15


2625


 


2625


Mike Burton


25


7


15


2625


 


2625


Sarah Smith


25


7


15


2625


 


2625


Norah Livingston


25


7


15


2625


 


2625


Project Manager


40


30


26


31200


 


31200


Kevin


60


10


26


15600


 


15600


 


 


 


 


109300


 


111300


 


            The total labour cost for the project is £111, 300, which is nearly more than three-quarters of the total budget for the project. This means that there is a limited remaining amount for other expenses such as tools and other miscellaneous resource needed in satisfactorily completing the project. However, based on the initial costs, the budget for tools such as hardware and software purchase is one-third of the budget or £50,000. This means that the labour cost exceeded by as much as £11,300. To make the budget the work according to plans, the exact period of work of the full-time and part-time employees should be determined since tasks do not necessarily involve working for 26 weeks. There are instances when the work of the hardware expert is finished to give way to software programming so that this could allow cuts on the cost.


12. Risk Severity Matrix


 


Risk


Cause


Trigger


Contingency Plan


Response


Risk Event


1. Inconsistencies in Work Contribution of the Different Team Members 


Differences in Opinion


Closed Perspectives of Team Members


Stop current work and redirect tasks


Interactive Meetings to reach a common understanding and direction


High


2. Overshooting of Budget


Unrecognised Areas of Spending


Oversight or lack of organisation


Re-allocate and optimise remaining budget


Suspend further spending to apply the contingency plan


Moderate


3. Tool Availability or Allocation Problems


Lack of Budget or Resource Wastage


Oversight


Re-assess resources and find tool suppliers


Suspend areas lacking in resources but continue areas with sufficient resources


Moderate


4. Miscommunication


Limited Channels of Communication


Unfounded assumptions, lack of consultation


Identify and open all available  communication channels


Locate the root cause of the problem


Moderate


5. Economic Catastrophes


Money market or stock market shifts


Industry or economic factors


Re-assess goals and objectives


Suspend project to assess viability


Low


 


            The risk considered to have the greatest severity of risk is the inconsistencies in the work performed by the different members of the team. Since the different team members handle different areas of the project, this means that the inconsistencies could result to the non-completion of the project or the completion of the project without meeting all the predetermined goals and objectives. There are other risks related to the budget, resource allocation, and communications but these are considered to carry moderate risk. Economic catastrophes constitute the risk with the least severity. Although the actualisation of this risk could have dire impacts on the project, the risk that this would occur or occur to an extent that would affect the company is low. 


13. Lessons Learned Report


 


            Project management involves multi-tasking, which requires knowledge on different areas of project processes such as planning, implementation and assessment. Project management spans the areas of business strategy, accounting, supply chain management, change management, human resource management. True to its comprehensive scope, project management also involves marketing because the project should be marketed to top management to seek their approval and to the different departments of the organisation to ensure their acceptance of the change or new system intended for introduction. Project managers should be innovative and creative in order to convince stakeholders to accept the merits of the project. A good argument does not only involve a presentation of financial and non-financial aspects but also the communication of this information in a manner that appeals not only to reason but also to the other aspects of human nature.  Of course, underlying a good marketing scheme is a sound project proposal customised to meet the actual needs and objectives of the company with strong support from financial and non- financial factors.



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