Step 1: Collect and Review Primary Information
April 3, 2025
The project begins when the top management assigns responsibility to the Project Champion. The Project Champion usually delegates the task of preparing the Project Charter to another team member. It is important for both the Project Champion as well as the team member to understand what information is required. Here are tips on how to…
Now that we have the problem as well as the goal statement handy, it is time to ensure that these statements are well articulated in the business case. The management has to choose amongst several possible six sigma projects while granting its resources. The ones that do succeed in getting the resources from the management…
What is a Project Charter ? A Project charter is a 5 to 6 page document which collects all the information that has been developed in the previous steps and puts it in a central location. The Project charter serves as the constitution which governs the working of the project and disputes if any that…
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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