Various models and methodologies can be used for systematic DMAIC project selection at minimal risks of failure. The aim is to use the resources available, to the maximum utility.
The combination usage of S-C-P Model, SWOT and VRIO analysis are some of the systematic tools helping with project selection.
The S-C-P; Structure-Conduct-Performance
S-C-P, or Structure-Conduct-Performance model, is an important approach to project selection. In the structure phase, the economic feasibility of the project is measured. Conduct is the utilization of the project and Performance is the evaluation of the possibility of project success.
After these initial steps, the strengths and weaknesses as well as the risks in the various projects are determined. The specific properties of the various projects are analyzed and assessed; these are key to the successful completion of the project.
SWOT Analysis
A SWOT analysis (i.e. Strengths-Weaknesses-Opportunities-Threats) is a powerful tool that allows a realistic assessment of the relevant projects. The strengths of the project established in the SCP model are assessed, and any further strength are established on the basis of SWOT variables.
Opportunities is assessing the economic and technical options that would give the highest returns as well as value. Weaknesses is finding out the impractical goals that would be difficult to achieve. The Threats are the roadblocks to the project.
Therefore, the SWOT analysis will give the concrete idea of those projects which would be strong and efficient to bring about the expected results.
VRIO Analysis
The VRIO analysis (Valuable-Rare-Imitable-Organized) evaluates the strongest projects determined by the SWOT analysis. From the listed projects in consideration, the other resources of those projects which can fend off the threats or exploit the barriers are assessed.
Those projects that seem to have the maximum efficiency with good benefits to achieve are selected. This selection would be the optimal selection with the least number of issues lefts unconsidered. Not all the steps in the VRIO analysis may be considered; it can be just a VR and O or likewise.
From the results of the analysis of various projects, the one with the most benefits matching the goals can be selected. Once the selection is completed, the DMAIC process can move ahead with the implementation.
This top-down approach provides a more realistic way of selecting the appropriate project. The outcome of this selection is seen in a successful implementation with the maximization of advantages. The efforts towards maximization of profits, customer satisfaction and quality providence can be expected from the project selected by using such a systematic approach.
