A problem statement describes what, where, how big and when the problem occurs. The statement is intended to be very clear and concise, focusing only on the issue or opportunity that was initially discovered. The statement should be neutral and not suggest any type of solutions or assumed causes. The objective of the statement is to define clearly what the problem is (symptoms) and quantify in some way their effects on the organization.
Our cash to cash cycle at the accounting process has not been meeting the standard of 30 days. As a result of this our funds are invested in inventory 50% longer than we expect. It is crucial that we improve this because we are not getting a return on our investments quick enough.
Our (category of problem) at the (where is the problem) have not been meeting (what is the problem). As a result of this (connect a metric with the magnitude/impact of the problem). It is crucial that we (correct or improve) this because (why it is important).
A pull system is a technique used to produce only what has a demand attached to it. Pull systems are also used to replace inventory items which may have been taken to fulfill a demand. Pull systems use triggers to notify individuals when a demand or a need has been generated for the part or service.
One very common everyday example of a pull system is at a grocery store. Items are not replenished until a customer "pulls" the item from the shelf.
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.
The Project charter is an informal contract between the organization and the team. A project charter will define the focus of a project, the problem, the goal, the scope, team and metrics linking the team's objectives together. The project charter often is revised multiple times throughout a project.
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