Operations Strategy Consulting, LLC
Operations Strategy Consulting, LLC
In This Issue
Derailing Your Continuous Improvement Program
Funding For Lean/Six Sigma?
Monthly Tool Tip
Previous Issues
 
Part 3: Derailing
Your Continuous Improvement Program
 Many companies undertake continuous improvement (CI) initiatives to streamline their operations. Yet, the road to Lean and the Six Sigma way is littered with companies that were tripped up in the implementation of these various programs. This series will examine the most common reasons companies fail with their CI initiatives and how you can avoid these mistakes.
 
Reason: Project Cure Cancer
 
A common problem is defining the initial project scope too broadly. The project owner and team members quickly become mired in all the processes and data and are overwhelmed. As a result, the project either stalls and eventually dies or a band-aid fix is proposed and the underlying problems are never resolved.
 
Closely related to poor project scope is project scope creep. What may begin as an innocent-sounding request to modify a project can spell doom to your company's improvement initiative. By expanding the project's scope after the project is begun you add time and rework to the project. Second, if the project's scope is repeatedly expanded, the project may never be finished, frustrating all involved.
 
Avoid both of these problems by carefully scoping your project at the outset and establishing a formal sign-off on the project's scope by the champion and project owner. If additional areas are identified during the project, launch separate projects to tackle them 
Operations Strategy
Consulting, LLC 
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Megan E. Burns
Managing Director
 
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The Manufacturer's Edge
Greetings!

The past couple months have been quite challenging for manufacturers and business leaders. Now, ISM (Institute of Supply Management) predicts that manufacturing revenues will decrease 1.1% in 2009. Hopefully, you've begun outlining your plans to eliminate the waste in your business and processes.
 
In this issue of The Manufacturer's Edge we will feature different options to help fund your process improvement efforts. Finally, we continue our series on the top reasons continuous improvement efforts fail and how to avoid those pitfalls.
 
Here's to your competitive edge!
 
Megan E. Burns
Operations Strategy Consulting 
 
Funding For Lean/Six Sigma? 

As we discussed in the last issue of The Manufacturer's Edge, world-class organizations invest in finding and eliminating hidden and non-people wastes during tough economic times. Yet some organizations just don't have all the funds to support the various projects they want to tackle. There are several grants available to companies to help defray the cost of training and projects. The following list is by no means exhaustive, but it is a good start for most firms.
  
The first funding source is the Guaranteed Free Training through the WEDnetPA program. The funding year runs from July 1 to June 30 the following year. Applications must be submitted through a WEDnet partner. Employers can receive up to $450 per employee, up to $75,000 per fiscal year. Detailed requirements and forms are available at www.wednetpa.com
 
The next option is your local workforce investment board (WIB). These grants are focused more on the benefit to the employee through earning a certificate, promotion, or wage increase. Employers can receive up to $700 per employee, but there is a 25% match requirement. This can be met through wage equivalency. There are 22 local WIBs in the commonwealth of PA, so do a google search for your nearest WIB.
 
The next funding option are Customized Job Training (CJT) grants. CJT grants are also awarded from July 1 through June 30. These grants can range from $25,000 to $150,000 and will cover 70% to 100% of training costs. These funds are limited to more advanced training that goes beyond the basic skills training covered by WEDnet. CJT grants are administered directly by the PA Department of Community and Economic Development (DCED), although it may be worthwhile to have a local economic development agency help you with the application forms.
 
The last funding option I'll cover are MATAAC grants. These grants are available to companies that have experienced a loss of a proportion of its employees and a decline in sales due to imports. MATAAC grants cover 50% of the cost for consulting/training projects up to $75,000. Companies have three years to use the funds. Additional information can be found at www.mataac.org
 
If you have additional questions or want to learn more about any of these options, we can help you.
Monthly Tool Tip -
Solution Trees
 
When tackling a Six Sigma project, use a Solution Tree to accelerate the progress of your project. This tool helps you focus on statistically significant families of variation and not get sidetracked with other possible causes.
 
As we wrap-up 2008, have a very Merry Christmas and we will see you in the New Year!
 
 
Sincerely,
Operations Strategy Consulting, LLC