LSS Project Charter Project No:

Version 1 - Dec 09
General Info

Project Title To reduce the time taken to repair blown head gasket of 2.3L Ecoboost engines of Ford Focus RS

Business Unit Ford Project Location Detroit

Champion Project Manager Project Leader Rishabh Mehra

Project Start Date 1/10/19 Est Completion Date 5/20/19
Project Type Lean Project Leader's Location Detroit
Project Leader's Functional Group VSM 3

Expected Customer The customer will get their vehicle repaired in lesser time.
Benefits

Metrics
METRICS BASELINE CURRENT GOAL UNITS
number of
customer satisfaction 80% xxx 10% gain PRIMARY METRIC
units

SECONDARY METRIC

50% reduction SECONDARY METRIC

Core Project Info

Business Case: Faulty head gaskets developing coolant leak into the engine combustion chamber and thus resulting in drop of sales due to
word of mouth.

Faulty head gaskets may lead to white smoke from the exhaust and cause coolant level to drop which is leading to a worldwide
Opportunity Statement: recall of the affected vehicles.

Scope: To optimise the manufacturing process of the head gaskets by implementing a control process, which will eliminate the
necessity of recall hence increasing revenue and end-customer satisfaction

Projected Financial
Savings
TOTAL HARD SOFT
Team Members Requested

Project Financial Name Role Job Title % Time

Representative Rishabh Mehra Improvement Specialist Intern

Process Owner(s)

Reviews
Name Approval Status Date
Prepared by
Champion
Site Leader
Finance
 RTI International Metals, Inc.
CI Project Proposal
Financial Worksheet
PROJECT IDENTIFICATION
Project Title : Date :
Project Champion : Project # :
Financial Rep : Mentor
CI Leader Financial Rep :

IMPACT TO THE BUSINESS OR FUNCTION

GROSS SAVINGS COST REQUIRED NET SAVINGS

SAVING/COST CATEGORY HARD SOFT HARD SOFT HARD SOFT

- -
SPENDING
LABOR All Salary costs directly related to personnel changes from the project.
Salaries & Wages - -
Employee. Allowances - -
Fringe Benefits - -
Incentive Compensation - -
RAW MATERIALS & UTILITIES Savings associated with consumption of materials/utilities.
Raw Materials - -
Fuels and Utilities - -
Electricity - -
Packaging Supplies - -

MAINTENANCE Total cost associated with the maintenance of company assets.

General Maintenance and Supplies
Rentals - Maintenance
Purchased Services - Maintenance
Contract Labor Maintenance
OUTSIDE SERVICES
Contract Labor
Purchased Services
DEPRECIATION/LEASES
Depreciation/Amortization
Operating Leases
INDIRECT MAT AND SUPPLIES
OTHER
- -
- -
- -
- -
All outside services contracted for: Contract Labor, Professional Fees, Consultants, Advertising etc.
- - - -
- - - -
Savings include annual depreciation expense reduction as a soft savings.
Fixed assets sold: The net proceeds (sales price - net book value) should be recorded under Revenue.
Fixed asset demolished: Include the write-off of the net book value as a hard depreciation cost required (not
savings). Demolition/disposal costs should be included in the appropriate cost section.
0 0 0
All other prime cost categories not included above: Travel, Telephone, Postage, Insurance, Taxes etc.

ALLOCATIONS All costs allocated which are not directly controllable by the business/function.
Examples: Information Systems, Purchasing, HR, etc.
MARGIN Increased Capacity;Revenue @ Gross Margin. Capacity must be spoken for. Please consult your Fin.Analyst.

TOTALS

CAPITAL Total value of assets removed or added. (One-time recognition)

Fixed Assets Invested Capital for new facilities. (Fixed assets removed should not be included in this section)
Inventory Incremental cost x's volume of inventory change.
Receivables Value of the reduction in receivables (net of rebates).

CASH FLOW IMPACT BEFORE TAXFormula: (Savings) + (Margin) + Capital Savings - Depreciation Savings
Capital expenditures reduce cash flow and need to be entered as negative capital.

BUSINESS/WORK PROCESS - AREA IMPACTED

Gross Savings Cost Required Net Savings
Bus./Work Process Location Hard Soft Hard Soft Hard Soft Comments
0 0
0 0 Breakout of the impact of the project outside the
0 0 work process / area. Allows tie back to future
0 0 operational and departmental forecast & budget
0 0 changes.
0 0
0 0 0 0 0 0

KEY METRICS

NOTES AND COMMENTS

Approvals

Project Champion : Date :

Financial Rep : Date :

Mentor Date :
 Directions for Status Report

Purpose:
Keep CI projects on track and to provide feedback to the Champions, CI
leaders, Mentors, and Trainers.

Directions:
Please put the Candidate Name and data in the title of the form.
This form is to be filled out by the
Champion - Before each training
Mentor - During mentoring sessions
Trainer - At training
Each time you meet with them.

Red = behind schedule, not understanding topics,

Yellow = Behind schedule but can catch-up.
Green = On or ahead of schedule.

Give detailed and specific comments so the status can be understood by

other readers.

Comments:
 427422184.xlsx 07/09/2019

6
Project Title: L E A N
CI resource Name: CI
✘ CI S I G M
Leader Specialist A
Project Champion:
Mentor:
Business Unit:
CI resource Location:

Date:
Evaluator:
CI Phase:
Planned Completion Date:

PERFORMANCE INDICATORS COMMENTS COMMENTS COMMENTS COMMENTS COMMENTS COMMENTS COMMENTS COMMENTS COMMENTS

Overall Status of Project: g

Project Financial Validation (Has

r
finance signed off on the Worksheet?)

% CI Resource Dedicated g

Project Schedule (Do they have a

formal project plan and are they on r
schedule?)

Use Of Tools (Have they used the

G
key tools for the Phases?)

Project Champion / CI resource

Participation and Interaction (Are y
formal tollgates being conducted?)

Team Member Involvement /

Participation (Is the team involved g
and contributing to the project?)

Team Feedback (Is the Team

g
Feedback Worksheet being used?)

Interaction with Mentor (frequency,

g
significance, needed,……..)

Stakeholder Communication (Do

the stakeholders know what is going g
on? Do they support the effort?....)

Concepts / Application of CI
Methodology (Is there a clear
understanding of the CI phases?
Y
What is the plan to ID the root cause?
What tool/s will be used to validate
the root cause/s?……)

Recent Achievements & Highlights

Critical Next Steps

Issues for Management's Attention

Status Report
 DEFINE PHASE CHECKLIST

Project Charter Complete

Who are the team members?
What critical skills are required, and are they represented on the team?
Who are the part-time resources?
Do all team members know their expectations (skills, participation, time commitment)?
Is there agreement amongst the team members on the project charter?
What additional resources are needed (financial, equipment, consultants, etc)?
State the business case.
How does the business case tie into an MOR metric or other strategic business measure?
Describe the “current state” versus the “desired state”.
What is in scope?
What is out of scope?
Is Six Sigma the right approach?
Does the scope support achieving the goals while completing the project within the required time frame?
What determines that the project has been completed?

Benefits
What are the expected financial benefits from the project? Hard $? Soft $?
Review the financial worksheet. Has it been signed by the financial representative?
What are other non-financial benefits from completing this project?

Schedule
When was the formal Project Launch?
Describe the high-level project plan.
Is the project on schedule? If not, what is the plan to get back on schedule?
What are the detailed tasks and schedule for the next phase?

Organizational Environment
Who are the key stakeholders? How does this project impact them?
Describe the communication plan. How does it address each stakeholder?
What are the risks to the project? (to schedule being met, to benefits being realized)
What is the risk mitigation plan?

Voice of the Customer

Who are the customers?
What are their CTQs? How were they determined?
For external customers, has Marketing / Sales / Customer Service been included?

Data
What are the measurable Key Process Output Variables (key – Y’s)?
Explain how you transformed customer CTQs into measurable process output variables.
Does the data for these variables exist? If not, what is the plan to acquire it?
Review graphical displays of preliminary data.

Process
Describe the current-state, high-level process flow.
Administrative
What issues or concerns do you have regarding this project?
Is there alignment between the project leader and champion on all of the above?
Has the project dashboard been updated?
 MEASURE PHASE CHECKLIST

Process Complete
Review the process map. Is it detailed enough to provide guidance with root cause analysis?
Review the SIPOC. Is it detailed enough? Does it include all input variables?
Did process experts take part in developing the process maps, or at least validate the process map?
Do other processes need to me mapped out prior to moving forward?
Review the Qualitative Analysis of each process.
Identify Value-Added, Business Value-Added, and Non-Value-Added steps.
What is the plan to eliminate NVA steps?
Describe how lean tools have been / can be applied to the NVA process steps.
Review the future state process map.
Describe how this future state will more closely meet the Voice of the Customer.

Data
Describe the data collection plan. Is it broad enough to capture all sources of variation?
What process output variables are being measured? Identify each as continuous or attribute data.
Does sufficient data exist (greater than 25 data points)?
Describe any concerns concerning the validity of the data.
Verify that the process output variables selected are directly tied to the Voice of the Customer.
Are any Key Process Output Variables are currently not being measured?
Review the basic statistics for the key – Ys (i.e. mean, standard deviation).
Is the data normally distributed? If not, describe the reasons for the non-normal distribution.
Review graphical representations of data, including histograms and run charts.
What insight do they provide to process performance?
Review control charts for the data.
Is the process in statistical control?
If not, what is the plan to identify and eliminate special causes?
What is the defect rate, DPMO? How was it calculated?
What is the baseline process capability – Cp or Cpk?
Why are you choosing one over the other?
How were the specifications determined?
What is the baseline sigma level?
Review the Pareto chart of defects.

Measurement System
Describe the measurement system for each key – Y.
Review the results of the Gage R&R. Is the measurement system allowing process variation to be seen clearly?
Describe results of stability, linearity, and bias analyses.
Describe the steps taken to improve the measurement system.
Is there a control plan in place which includes ownership, calibration, procedures, troubleshooting guide, etc?

Administrative
Has the team identified any quick wins? What is the implementation plan?
Is the scope defined in the Charter still valid? Does it need to be modified?
Is the risk management plan still valid? Does it need to modified?
Are the projected financial benefits still valid? Does the financial worksheet need to be updated?
Is the project still on schedule? If not, what is the plan to get back on schedule?
What are the detailed tasks and schedule for the next phase?
Describe the team interaction to this point. Do any changes need to be made to the team make-up?
What issues or concerns do you have regarding this project?
Has the project dashboard been updated?
 ANALYZE PHASE CHECKLIST

Process variables Complete

Review the initial list of potential input variables driving output variable performance.
What sources were used to develop this list?
Review the C&E diagram.
Describe how the input variables were fit into the diagram.
Does each of the branches have adequate representation in the diagram?
Review the C&E matrix. How was each key-Y weighted?
How many variables are there before and after the C&E Matrix?
Were process experts involved in rating the input variables?
Have the variables been characterized as controllable, uncontrollable, etc?
Review the Pareto of the input variables after the C&E matrix.
Which process inputs stand out as especially significant?
Review the pFMEA.
How has it helped narrow down potential input variables further?
Were process experts involved in performing the pFMEA?

Data
Are the variables identified as significant – the key-x’s – monitored in the workplace? Does the data exist?
What is the data collection plan for key-x’s?
Do any key-x’s stand out enough to need immediate baseline data analysis?
What is the result of the MSA for the key-x’s?
Review the basic statistics for the key-X’s (i.e. mean, standard deviation).
Is the data normally distributed? If not, describe the reasons for the non-normal distribution.
Review the graphical representations of key-X data, including histograms and run charts.
What insight do they provide to key-Y variation?
Review control charts for the data. Is the data in statistical control?
Review reasons for special causes in key-X data.

Analysis
Review the statistical tests used to determine root causes. Should include hypothesis tests, multi-vari analysis,
ANOVA, correlation, regression analysis, logistic regression, or DOE as appropriate.
Describe methods for stratifying output data based on different key input variables. What input variables have the
most influence on process outputs?
What are the root causes for variation in the key-Y?

Administrative
Has the team identified any quick wins? What is the implementation plan?
Is the scope defined in the Charter still valid? Does it need to be modified?
Is the risk management plan still valid? Does it need to modified?
Are the projected financial benefits still valid? Does the financial worksheet need to be updated?
Is the project still on schedule? If not, what is the plan to get back on schedule?
What are the detailed tasks and schedule for the next phase?
Describe the team interaction to this point. Do any changes need to be made to the team make-up?
What issues or concerns do you have regarding this project?
Has the project dashboard been updated?
 IMPROVE PHASE CHECKLIST

Brainstorming Complete
Describe the different techniques used for generating solution ideas.
Who was involved in generating solution ideas?
How many ideas were generated?

Solution Selection
Review the solution matrix. What were the criteria for evaluating solution ideas? How were they rated?
Review the final solutions chosen by the team.
Review the process map reflecting the new process. What other documentation has the team developed to
support the new process?
How has the team evaluated the potential risk associated with the solutions?

Pilot
Review the plan for piloting the proposed solutions. Are key process stakeholders included in the pilot
planning process?
Review the data collection plan for both input and output variables.
Review the relative success or failure of the pilot. What was learned about the process improvement? How
has this helped refine the solution?
Implementation and Analysis
Review the plan for full implementation. Have all stakeholders been part of the planning process? What new
documentation and systems are needed to support implementation? Review the plan to communicate the
solution to all stakeholders.
Review the statistical tests used to determine if an improvement has been made. These should include
hypothesis tests, ANOVA, DOE, multi-vari analysis, correlation, regression, or others as appropriate.
Does the data indicate a significant difference in the key-Y?

Administrative
Is the scope defined in the Charter still valid? Does it need to be modified?
Is the risk management plan still valid? Does it need to modified?
Are the projected financial benefits still valid? Does the financial worksheet need to be updated?
Is the project still on schedule? If not, what is the plan to get back on schedule?
What are the detailed tasks and schedule for the next phase?
Describe the team interaction to this point. Do any changes need to be made to the team make-up?
What issues or concerns do you have regarding this project?
Has the project dashboard been updated?
 CONTROL PHASE CHECKLIST

Control Plan Complete

How will the gains be maintained? Review the control plan.
What is the sampling plan for the key-Y? For the key-X’s?
What control charts have the team put in place to track process performance?
Have all necessary documents been updated? Review updated SOPs and troubleshooting guides.
Describe opportunities to apply lean analysis tools at this point in the project, including 5S, ACP, continuous flow,
standard work, SMED, value stream analysis, waste elimination, poke yoke.
What are the risks to losing the gains made by the team? How will these risks be mitigated?
What are the training requirements? Who needs to be trained? How will ongoing training be conducted?

Turnover
Review the stopping point for the project. When will the project results be turned over to the process owner?
Who is the process owner? How will the ownership of the project results be turned over to the process owner?
With the project owner identify additional opportunities for Six Sigma projects.

Team Wrap Up
Describe the team recognition event.
Review the plan to communicate project and team success to key stakeholders, including sector management.
What charts are included to show before / after comparisons?
Review the project storyboard.

Administrative and Lessons Learned

In retrospect, evaluate the following and document potential improvements: scope definition, risk management,
financial worksheet, project scheduling, team selection and interaction, issue resolution, team/champion interaction,
Belt/mentor interaction.
Has the project dashboard been updated?
Discuss opportunities for leveraging within this location and across the sector.
 Criteria Rating Strengths
Setting Goals

Assigning
Accountability
Handling
Conflict
Making
Decisions
Meeting
Effectively
Learning /
Feedback
Barriers Actions