Course Content
Define
Identify the problem or process that needs improvement, set project goals, and outline the scope.
0/10
Six Sigma Management at Corporate Level
Six Sigma Project Team Structure
Create team roles and responsibilities
Create a Problem Statement
Create the SIPOC process map
What is CTQ (Critical to Quality)
Create CTQ Tree
Creating a Project Charter
Stakeholder Analysis
Outcome expected after the Define Stage
Measure
Collect data to establish baselines, understand current performance, and quantify the problem. For example, measuring the average turnaround time for policy renewals.
0/4
FMEA (Failure Modes and Effect Analysis) concept
Data collection methods
Introduction to data sampling
Use of Run chart for analysis
Analyze
Examine the data to identify root causes of inefficiencies or risks. This might involve analyzing claims data to uncover bottlenecks or sources of errors.
0/12
5 Whys
Root cause analysis with Fishbone Diagram
Lean 7 Wastes concept
Value chain mapping with Value Stream map
What is a process
Components of process
Process Mapping with Swimlane diagram
Process redesign principles
80/20 analysis with Pareto Diagram
Statistical analysis with Box Plot
Hypothesis Testing
Correlation and Regression Analysis
Improve
Develop and implement solutions to address root causes. For example, streamlining workflows or introducing new digital tools to reduce manual errors.
0/4
Solution Selection Matrix
Cost Benefit Analysis
Risk Assessment
Implementation Planning
Control
Put controls in place to sustain improvements, such as regular monitoring, updated procedures, or dashboards for ongoing performance tracking.
0/4
Create Control Plan
Create Key Performance Indicator (KPI)
Prepare the Process and User Guides
Handover to Process Owner
Six Sigma DMAIC (Define, Measure, Analyze, Improve, Control)

What is Problem Statement

A problem statement is a clear, concise description of an issue that needs to be addressed. It sets the stage for informing stakeholders about the challenges a project faces. A well-crafted problem statement acts as a guide for research and solution generation, ensuring everyone involved is aligned on the central issue.

 

Why is Problem Statement important

A well-defined problem statement is vital for various reasons. It not only acts as a foundation for the project but also helps frame research questions and objectives. Furthermore, it aids teams in staying focused on resolving the identified issue without diversion. Ultimately, a strong problem statement enhances the likelihood of developing effective solutions, leading to project success.

 

What constitutes a strong Problem Statement

To create a strong problem statement, several key components should be included:

  • Clarity: The problem should be articulated in simple, easily understandable terms.
  • Specificity: It should pinpoint the problem precisely rather than being broad or vague.
  • Context: Providing background can help the reader understand why the issue is significant.
  • Impact: Understanding the implications of the problem is essential, as it highlights the need for a solution.

From Lean Six Sigma perspective, a strong Problem Statement should include:

  • Where and when the problem was recorded or was occurring
  • A measurement of magnitude for the problem, preferably with some tie to cost
  • A brief description of the problem that could be understood by professionals
    not closely aligned with the process (avoid too many niche words and acronyms
    if you will be presenting information to non-niche professionals)
  • A brief notation about the metric used to measure or describe the problem

 

Example of a good Problem Statement

In the first quarter, the California distribution center sent 108,000 packages. Of those packages, 15,000 were returned, resulting in a 13.8 percent return rate. The rate of return is above the accepted 7 percent rate and cost the company an additional $372,000 for the quarter. Over the course of the year, the current process could result in additional costs of over $1.4 million.
 
This problem statement covers all the basic information:
  • When? During the first quarter of this year.
  • Where? The California distribution center
  • What? Returns
  • How many? 15,000, or 6.8 percent above expectations
  • What is the magnitude? The cost could be $1.4 million a year
Previous
Next