Defining a Problem Statement
Poor Example:
Our customers are angry with us and thus delay paying their bills.
Good Example:
In the last 3 months, 12% of our customers are late, by over 45 days in
paying their bills. This represents 20% of our outstanding receivables &
negatively affects our operating cash flow.
When
Consequence
What Magnitude
Goal Statement
Goal Statement
– The goal statement specifies the target that the Kaizen
project is seeking to achieve; and, the goal statement
must:
Start with a verb (e.g., reduce, control, eliminate, increase,
etc.)
Have focus of the project (e.g., cycle time, accuracy,
productivity, etc.)
– Like the problem statement, the goal statement should also
not:
Assign a cause or blame
Include a solution
Business Case
Business Case
– A business case helps to understand how is the project linked
with the overall business objectives.
– The business case should be able to answer the following:
Why should the project be done?
Why should it be done now and not later?
What are the risks associated with not doing it?
Which of the business objectives does it address?
What is the impact (if any)?