In define stage(in the project charter) when we state the goal statement we need to give what the problem is and how much we intent to reduce it but we cannot do it without actually measuring the problems then why have a measure phase after define phase.

 

we even have to state the time we spent for each phase in the charter

Even after measuring Y in the Measure phase one might not be able to decude the extent to which it would be reduced. Reason is simple, a DMAIC project is for a problem that has unknown causes and unknown solutions, without knowing what's causing the problem and what's going ot resolve it, it would be difficult to set a target, a realistic target if I may say so.

 

The question here could be, what are the different methods used around the globe to set goals....

 

Some set the customer targets as their project goals, however unrealistic they might be. Some use 70% of the difference between entitlement and mean.

 

So far in the projects completed by me, I've used one of the two approaches mentioned above. Would request others to share some scientific approaches to set targets.

Dear Ajith,

 

Project Charter is a living document.It can be updated even after the Define phase. In fact, DMAIC cycle is such that you may have to go to any of the previous stages during the course of the project and it is ok to do so.

 

 

 

Dear Vikram,

 

You have already mentioned two approaches that you use. You are correct in saying that an "estimate" of the goal is made at the initial stages. Other approaches that are used are:

 

1) reduce defects by 50%

2) estimate what can be reached by eliminating top reasons, set stretch goals

3) use DOE to optimize the solution and settle for the goal that is viable for your budgets