Step 1: Collect and Review Primary Information
February 12, 2025
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The Millennial generation has got used to living in an on-demand world. They buy food on demand, hire cabs on demand and even take exams on demand! It was only a matter of time before the manufacturing industry jumped to the on-demand bandwagon as well. The truth is that there is a significant upside to […]
The first step in the measure phase of a six sigma project is to create a detailed process map of the processes and sub-process under question. Participants often get confused between a high level process map and a detailed process map. This article will help articulate the link as well as the differences and clear […]
Introduction Knowledge is very important for survival of organization. Historically, employees have gathered knowledge through trial-and-error method or by working as an apprentice under a tenured knowledgeable employee. Management guru Peter Drucker forwarded a concept that knowledge is as valuable as a company’s various asset like plant, machinery, etc. Importance of Knowledge Management Knowledge provides […]
The SIPOC Chart, being one of the fundamental documents of any process improvement project must be developed in such a manner that it is easy to understand. It must also be coherent with the logic inbuilt in the process. There is a method which has been described to ensure the proper development of the SIPOC […]
The Project Risk Assessment Matrix is one of the required documents to complete the Define phase of the DMAIC methodology.
The procedure has been designed in such a way to ensure that people implementing the project have given a thought to what can possibly go wrong and begin thinking of mitigation plans.
Here is a step by step review of how to prepare the Project Risk Assessment Matrix:
The first step in the process begins with the listing down of all the risks that the participants can think of. This is usually done in a brainstorming session.
Participants are typically given a list which contains common categories of risks. The participants are then advised to think of whatever risk they can foresee in the project category by category. This is done over and over again to ensure that the list is exhaustive.
Once the list of the possible risks that a project may face is available, the next step is to rate the risks.
The risks are rated on two parameters viz. probability of occurring and impact of occurring.
In both cases the score is given out of 5, with 5 being certainty that the risk will occur or have a very high impact if they do occur. The scores are then multiplied and then arranged in a descending order.
All risks are not equally important from the six sigma project point of view. Hence they need to be classified and efforts need to be focussed only on the ones that are priority. There is usually a standard matrix that classifies the risks into the following 4 categories based on the parameters:
There are three basic strategies which help mitigate risks successfully. They are:
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