3: Lean Six Sigma Project Selection and Prioritisation

This chapter provides an overview of how to select and prioritise projects when organisations pursue a Lean Six Sigma (LSS) journey. However, the authors noticed that there has been confusion amongst many senior managers in organisations regarding when LSS projects should be executed. It is vital to note that Lean Six Sigma projects are implemented when solutions to problems are unknown at the outset of a problem-solving exercise. Nevertheless, this does not imply that when the solutions are known, projects are easy to execute in organisations. For instance, implementation of a new IT system across a department does not require the application of Lean Six Sigma methodology as the solution is known at the outset. Examples of ‘solution unknown’ projects include reducing the errors in an invoicing process, decreasing the number of defects in a manufacturing assembly operation, increasing the throughput yield of a process, reducing the variation in turnaround times for cataract surgery in a hospital setting and so on. In these cases, the root causes of the problem are either unknown or vaguely known to the problem-solving team. For problems of such nature, one may have to collect data and perform statistical analyses to understand the root causes and then decide what actions to take. Many practitioners of Lean Six Sigma argue that Lean projects are ‘solution known’ because they typically involve applying known, proven principles instead of discovering an unknown solution (Snee & Hoerl, 2018). This does not mean Lean projects are easier to execute as tools, principles and basic concepts need to be applied to particular processes where the problems lie. The focus of this chapter is on ‘solution-unknown’ projects using LSS and how to select and prioritise such projects in organisations.