Page 94 - Six Sigma Demystified

Chapter 4 DEF INE STAGE 75

Deliverables
Deliverables include all measurable benefits from implementing the project.
Properly defined deliverables will answer the question: “How do we define
project success and completion?”
There are many types of project deliverables, as discussed in the section on
project selection in Chapter 3.
Often, project teams are tempted to include some of their analysis results as a
deliverable. Even the implementation of statistical process control (SPC) charting
in a process is not a deliverable because it is not itself a direct financial benefit to
the organization or customer (although it provides indirect benefit through
improved product quality and reduction of unnecessary project tampering).

Project exAmPle: Deliverables

in the order processing efficiency project example, the deliverables are broken
down by metric:
Order processing annual savings at current order volume: $27,000.
E- mail marketing costs: The total cost of the campaigns would be reduced
by $24,000 annually, and additional sales potentially could be generated,
especially for renewals.
Software renewal rate: at the current (product- specific) renewal rate, this
would increase revenue $50,000 annually.
Renewal revenue: The renewal rate appears to depend on the marketing
campaigns, which to date have been limited to product A. if the other
product families achieved renewal rates matching product A’s, $250,000
in additional revenue would be realized. While the project team thought

that this could be achieved over a longer term, they thought that a
20 percent increase in revenue for the first year was achievable.

time Frame

The project charter should list the charter date (i.e., the date approved by the
sponsor), the start date, and the expected completion date based on an attached
project schedule (see Gantt charts in Part 3). In addition, a phase- gate review
section is provided to indicate dates when objectives for each DMAIC stage
have been completed. As described in the scope discussion, the duration for
most Six Sigma projects should be limited to three to six months. The review
for each phase is conducted as part of the status reports discussed below.