From the course: Six Sigma Foundations
Problem and goal statements
- To quote the famous American inventor Charles Kettering, "A problem well stated is a problem half solved." The importance of problem definition cannot be emphasized enough. In this movie, I'll explain how to develop effective problem and goal statements for a Six Sigma project. The problem statement describes the opportunity or problem to be addressed by the Six Sigma project. The opportunity or problem should not be a one-time occurrence, not a one-off problem that occurs sporadically. It should be a recurring, chronic problem. The problem or opportunity should be specific and measurable. For example, it is specific to a process, product or service and it is specific to a type of defect or performance deficiency. It should be measurable, to indicate a size and impact of the problem, in operational and financial terms. The opportunity or problem should be relevant and significant to the organization; otherwise, why bother? Here's an example of a problem statement. "Over the past 12 months, First Call Resolution "at our IT Help Desk is only 60%. "This is below the 75% required "in our service level agreement or SLA. "Failure to meet this requirement will result "in a loss $200,000 in penalties, "not to mention customer dissatisfaction, nonrenewals, "and a potential loss of clients." The opportunity or problem is a recurring, chronic problem stated in a specific and measurable terms and it is relevant and significant. The problem statement is very compelling. It makes you want to address it immediately. The purpose of the goal statement is to establish the target result to be achieved and by when. To do this effectively, the goal statement should be smart, S-M-A-R-T. It is an acronym for specific, measurable, attainable, relevant and time-bound. S, specific as to what needs to be improved. M, measurable as to how much improvement to achieve. A, attainable, that a target result is realistic and achievable. R, relevant to the success of the business or organization. And T, time-bound, the timeframe to get it done. In our example, the goal statement is "Improve First Call Resolution rate to 75% or higher, "while ensuring customer satisfaction, "within the next four months." As you can see, the goal statement is smart. Specific to improving First Call Resolution rate. Measurable at 75% or more. It is an attainable and reasonable goal. And it is relevant to the success of the business, since that is the level required in the service level agreements. And it is time-bound, as the goal must be achieved within four months. Let's show the problem and goal statements together. When the problem and goal statements are stated correctly, you and your project team benefit. Both statements show a compelling problem that needs to be addressed, how much needs to improved and by when. To summarize, the opportunity or problem is recurring, chronic, specific, measurable, relevant and significant. The goal must be SMART; specific, measurable, attainable, relevant and time-bound. When you learn how to develop effective problem and goal statements, you benefit because they compel you to act decisively with direction and focus as to what needs to be improved and why, by how much, and by when.
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