The boundaries/scope of a charter make it clear to the team what the starting and stopping point are and to what level. The scope includes lateral and longitudinal scope. Starting and stopping points are usually outlined with a SIPOC map or a flow chart. Scope sets the in’s and out’s or the boundaries for team members.
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A project budget is a comprehensive assessment or estimate of all costs related to a project. The project budget is more detailed than a high-level budget that may have been developed in the initial stages of project development.
What is included in a project budget? 1. Labor or manpower costs. 2. Material costs. 3. Direct costs such as training 4. Equipment costs including ongoing equipment fees. 5. Overhang and consulting fees 6. Project reserves or contingency planning 7. Subcontracting costs or vendor fees. There may be other costs unique to your project. Keep in mind the project budget is your best estimate of how much the project will cost and ultimately determine the initial cost to benefit analysis for sponsorships decision. A product family are products which pass through similar processing steps and share common equipment prior to leaving your company (shipping to customer). In general product families share about 80% or more processing steps or equipment. The significance of the "product family" as it relates to lean or six sigma is that the value streams of our organizations are in some way related to a product/service, when we group them into product/service families we are then able to see which product/services share the same processes and which value stream will be the greatest improvement opportunity for the organization.
Process mapping refers to a tool used to make business processes visual. The process map documents an entire process step by step. The process map is generally used towards the beginning of initiatives in order to understand the flow of a process but it can also be used in support of almost every phase of improvement projects.
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April 2024
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