HOW TO USE PROJECT scoping TOOLS?

In this article, you will find the presentation of three tools to properly scope and plan your Lean Management projects.

In the context of a factory, managing hundreds of references can be a significant challenge. To bring clarity and prioritize the attention given to each reference, the most widely used tool is ABC analysis, also known as the 80/20 rule or Pareto law.

This method, developed in the 19th century, allows references to be classified into three distinct categories:

1 – CLASS A

Representing 80% of the value (in euros or manufacturing time), this category includes only 20% of the total number of references.

2 – CLASS B

Representing 15% of the value, this category groups 30% of the references.

3 – CLASS C

Representing 5% of the value, this category includes half of the references, or 50%.

To refine this value, the ABC/fmr Matrix intervenes by considering the frequency of consumption, thus combining the valuation of products with their usage frequency.

The ABC/fmr Matrix defines the scope of your project. This method involves conducting a vertical ABC analysis and horizontally integrating the frequency of manufacturing or consumption of products into fmr:

• F for Frequent: typically represents what is manufactured or consumed daily.
• M for Medium: corresponds to a weekly frequency.
• R for Rare: defined as a monthly frequency.

To steer your projects towards strategic scopes, focus on frequently manufactured Class A products. Although this may be limited to a few products, improvements in this category will yield daily gains representing a significant portion of your revenue. You can also expand your analysis to Class A products manufactured less frequently (M), or frequently manufactured Class B products, and so on.

Given the dynamic nature of products, it is recommended to frequently recalculate the ABC/fmr Matrix.

Various complementary matrices can be created: a matrix based on revenue, volume, or even hours worked. You choose the relevance of the chosen criterion.

This methodology can be used in improvement projects, including initiatives such as the 5S project in a workshop or logistics warehouse, aimed at optimizing storage locations.

The SIPOC diagram (Supplier, Input, Process, Output, Customer) represents a methodology for visualizing and describing the process on which we want to work. This essential tool in process management has a great capacity to systematically and thoroughly map each step of the process, tracing its path from suppliers to customers.

• S for Supplier: people or organizations providing inputs.
• I for Input: resources necessary for executing the process.
• P for Process: activities that add value to the inputs.
• O for Output: the final product delivered to the customer.
• C for Customer: people or organizations using the final product.

Starting with suppliers, it identifies the various sources of supply, detailing the types of inputs provided to the process. It then examines the different stages of the process itself, analyzing each phase in depth, the resources used, and the actions performed. Finally, it traces the path of the results to the end customers, detailing how the process outputs meet the customers’ needs and expectations.

The SIPOC diagram offers a strategic perspective on the process dynamics. It highlights the importance of upstream (suppliers) and downstream (customers) partners in the overall functioning of the process.

The SMART method is a tool that helps define clear and achievable objectives. This methodology provides a comprehensive framework to guide the successful planning and execution of projects. It stands for Specific, Measurable, Achievable, Realistic, and Time-bound.

1 – SPECIFIC

Indicates that the objectives are clearly defined in terms of what needs to be accomplished, by whom, and how precisely. By analyzing every detail, this characteristic ensures a common understanding and eliminates any ambiguity.

2 – MEASURABLE

Means that an objective should be defined so that its quantity and quality can be precisely evaluated. This not only allows for the establishment of tangible criteria to assess progress but also ensures an objective evaluation of results.

3 – ACHIEVABLE OR ACCEPTABLE

Highlights the importance of goals being possible and feasible within the available resources. They can then be accepted by the teams, ensuring collective buy-in and motivation.

4 – REALISTIC

Close to “Achievable,” this component adds a further nuance: the goals align with the company’s strategy and customer expectations, thus contributing to long-term growth and success.

5 – TIME-BOUND

This component emphasizes the temporal nature of objectives. It means that each project should have a clear start, a determined end, and a defined duration. It ensures effective time management, eliminating unnecessary delays and promoting temporal discipline.

The ABC/fmr method, the SIPOC diagram, and the SMART method are project framing tools that will be very useful for completing the Define phase (D) of a DMAIC project or the Plan phase (P) of a PDCA project.

Essential for establishing a solid structure, they enable effective management of objectives in an industrial environment.