5/2/2014

Six Sigma DMAIC Final Project Report | Jesse T. McClure

RESOURCE ALLOCATION FOR IUPUI
MOTORSPORTS DEPARTMENT
Page | 1

Table of Contents
Introduction ................................................................................................................................................... 3
Define Phase ................................................................................................................................................. 3
Business Case............................................................................................................................................ 3
Project Priority Matrix .............................................................................................................................. 3
Stakeholders .............................................................................................................................................. 4
Problem Statement .................................................................................................................................... 4
Project Scope ............................................................................................................................................ 4
Project Objectives and Deliverables ......................................................................................................... 4
Project Schedule........................................................................................................................................ 5
SIPOC ....................................................................................................................................................... 5
Voice of the Customer Analysis ............................................................................................................... 6
Strengths ............................................................................................................................................... 6
Weakness .............................................................................................................................................. 6
Opportunities ......................................................................................................................................... 6
Threats................................................................................................................................................... 6
Measure Phase .............................................................................................................................................. 7
CTQ Tree .................................................................................................................................................. 7
Process Map .............................................................................................................................................. 8
Survey ....................................................................................................................................................... 8
Spaghetti Diagram .................................................................................................................................... 9
Measurements ........................................................................................................................................... 9
Future Process Map ................................................................................................................................. 10
Analyze Phase ............................................................................................................................................. 10
Cause and Effect (Fish Bone) Diagram .................................................................................................... 10
Relationship Diagram Currently .............................................................................................................. 11
Desired Relationship Diagram ................................................................................................................. 12
Projected Savings .................................................................................................................................... 12
Improve & Control Phase ............................................................................................................................ 12
Root Cause Analysis ................................................................................................................................ 12
Force Field Analysis ................................................................................................................................. 13
Control Procedures ................................................................................................................................. 13
Page | 2

Request for Funding Form ...................................................................................................................... 13
Grading System ....................................................................................................................................... 14
Conclusion ................................................................................................................................................... 14





















Page | 3

Introduction
IUPUI Motorsports Department funds three separate race teams. The three teams are the
Karts, MG, and FSAE teams. The Karts are the teams that compete in the Purdue Grand Prix.
They had a minimum of 2 Karts but can run 4 at Purdue in the spring. The MG car is a former
factory built car that has been changed to compete at SCCA events and has found success in the
past making it to the national competition. The final team is the FSAE team. FSAE stands for
Formula Society of Automotive Engineers. They build a car from the design to the final
completion. This process ends in Michigan with a competition involving multiple facets. All
three teams are funded through Dr. Peter Hylton out of the IUPUI Motorsports Engineering
Budget. When a team is in need of funding, they come to Dr. Hylton and request funds. Dr.
Hylton then goes about making a decision on how to disperse funds.
Define Phase
Business Case
The first step was to sit down with Dr. Hylton. After a short discussion, it was evident
that the major problem was that he was having to spend too much time with the funding process.
He made it clear that he would prefer that there be an easier process implemented that would
help streamline decision making on fund dispersion. He feels that the teams put forth minimal
effort in decisions about what is needed and for what reasons. When the teams want the funds,
they do not have a justification for why they need the money.
Project Priority Matrix

A. Process for Deciding Funding Distribution & Requesting Funding
B. Eliminates Dr. Hyltons Gut Decisions & Wasted Time
C. Provides Opportunities for Teams to Request and Justify Funding

The Matrix was used between Dr. Hylton and I to establish whether this project would be
beneficial and who it would benefit. Usin g this method, it made it clear that ultimately the
benefit would be to Dr. Hylton himself but also identified that the University would find a great
benefit as well. This process more clearly defined the problem. It displayed that the problem was
Page | 4

putting added stress and work on Dr. Hylton. It also would have a major benefit for the teams to
learn how requesting funds works in industry.
Stakeholders

Problem Statement
Dr. Hylton must manage and organize the entire process. Students come to his office and
request funds for projects giving no justifications as to why these projects need to be completed.
Dr. Hylton is challenged to forecast the amount of money to budget; without knowing any
projects that might occur in the future. Teams provide him with no justifications or reasons for
why they need the money. This causes him have to do his own research and make an educated
decision on whether to fund the project. He would like to shift the responsibility from himself to
the teams.
Project Scope
The idea for this improvement process is to design a Request for Funding Form (RFF), a
grading system for these forms, and make a timeline for submission. The idea for the RFF is
similar to a Request for Proposal which companies in industry use when trying to get other
companies to fill contracts. This form will provide a series of questions to get an idea of the
project. The grading system will provide a method for Dr. Hylton to assess the projects quickly
and to know where the funds need to be dispersed. The timeline will give an idea for when all
these should be submitted and to make it before the budget is due to the E&T department.
Project Objectives and Deliverables
Request for Funding Form (RFF)
Project Grading Sheet
Time Table for Submission
Reduce Over Expenditures for (RFF)
Reduce Decision Making Bottlenecks
Decrease the Amount of Funds Requested
Page | 5

Project Schedule


The project is planned to run from 2/4 to 4/25. The more important part is to keep this
project on task until the Improve and Control phase. At that point the process will be handed off
to Dr. Hylton upon the end of the semester. This project will then become his ongoing
improvement process until it is exactly the way he wants. It is important to note that the dates
above are tentative and can change depending on how quickly the project is completed.
SIPOC

The SIPOC diagram showed that majority of the people completing tasks actually are the ones
benefiting. It is a diagram that will allow teams to see how important engaging in this process
Page | 6

will be. They will be able to see the benefit and that this is not just another piece of paper to fill
out.
Voice of the Customer Analysis
Strengths
This project will create a wealth of experience for students in creating budgets. It will also help
to control and distribute funds in a fair way. This will hopefully keep the peace among the teams
so that they do not feel they are being left out. This will also properly allocate resources so they
are not wasted on projects that are not going to pan out.
Weakness
This current process has a handful of weaknesses. There is no decision making process currently.
There is never an idea about how much money will be needed during the next year to fund all the
projects. It can be quite challenging to find funds throughout the decision but it is also
challenging to decide where the funds go. The current process has no explanation for necessity of
funding.
Opportunities
The project has plenty to learn from. The first is the funding process. Currently, students have no
idea about how the money becomes available. They just expect money when they need it. This
new process will give experiences in how to request funds and how to budget for the exact
money required. Since a decision making process is non-existent, any attempt at one will be an
improvement. Adding some sort of process in which to gain funds for each teams project, will
add much needed improvement. After all of this is completed, it should improve the projected
budget earlier in the year.
Threats
With any new system, the teams might be met with confusion. This is a threat that could derail
the project before getting a good footing. It could also create a bottleneck because students are
now going to file as many as possible to get things done on their race cars. This will also be a
problem if teams start to inflate the budgets to get more funds. On the other side, once the real
numbers are seen this could open the possibility of them getting passed over.
Page | 7

Measure Phase
CTQ Tree

The most important thing to quality is improving the decision making time and
distribution of funds. The way this will be done is through a grading system of the RFF form.
The teams will fill out the RFF and then Dr. Hylton will have a points system that will grade this
form. To get to that stage, teams will have to provide proper justification and budgets to file the
form. These variables will go into the system and provide a number that allows Dr. Hylton to
know the level of importance.
Key Process
Input Variable
(KPIV)
Key Process
Output Variable
(KPOV)
Critical to Quality
(CTQ)
Improve Decision
Making Time &
Distribution of Funds
Request For Funding
Form (RFF)
Proper Justification
Budgeting
Project Grading
System
Project Variables
Page | 8

Process Map

It is important to note that currently the entire budgeting process has to occur before any projects
are brought to Dr. Hylton. The teams come and ask when they feel it is required. The problem at
that point is the money has already been budgeted so there may not be any left over money to
fund these projects. When this happens Dr. Hylton has to locate some new source of money to
fund them or dig into his own pocket.
Survey

The above questions were used to identify information about the process. It located how much
time was spent during the entire process. The amount of time Dr. Hylton had to put in was one of
his biggest problems. He had to go through every step getting these requirements filled so that
teams got the parts they wanted. While waiting for Dr. Hyltons decision, the teams just waited
and did nothing. Dr. Hylton felt this was a major problem because they should be doing some of
the work. He felt that he was losing time for projects that were not his problem.
Budget Forecasted
For Possible
Expenses For
Upcoming Year
Budget Released
Teams Decide They
Would Like More
Funding
Team
Representative
Appears in Dr.
Hyltons Office
Money is Requested
Dr. Hylton Thinks
Over Request
Dr. Hylton Provides
Personal
Justification For
Project
Dr. Hylton Makes
Choice based on
Personal Feeling
Fund Distributed to
Teams
Other Teams Hear
About Funds and
Come To Get Their
Share
1. When Teams Come Looking For Money How Much Time Is Usually Spent
Talking To You About The Project? ______
2. How Much Time Do You Spend Traveling To Look At the Cars To See What
the Teams Are Requesting Be Done? ______
3. How Much Time Do You Spend Coming Up With an Explanation For the
Project? ______
4. When You Finally Have Some Justification, How Much Time Do You Spend
Thinking About the Project Before Coming To a Final Decision? ______
5. How Long Does It Take You To Get the Requested Funds To the Teams?
______
Page | 9

Spaghetti Diagram

The spaghetti diagram displays how many separate trips Dr. Hylton has to make from his office
as each team requests funding. It shows that the teams really dont do most of the leg work and
that is all put on Dr. Hylton. He would prefer that he makes only a couple trips to visit cars and
that he know enough that he can make only a trip or two to get the funding for projects. This
would free up time for him to complete other more important tasks.
Measurements
Discussion Time 120 Hours/Semester
Travel 15 Hours/Semester
Explanation 60 Hours/Semester
Justification 120 Hours/Semester
Purchasing 100 Hour/Process/Semester
Shipping Days 700 Days

The above table shows all the time that is spent per semester by Dr. Hylton. Most of this
time could be spent doing other things that require his attention and could be handled by the
teams themselves. When this time is added up, it totals out to be about 15% of his total time a
semester. Some important cost figures are that the university loses $9,276.95 a year for Dr.
Hylton to deal with this entire process. I am positive that the university would like to pay him
that money to be doing something else like teaching. It also costs about $2100.00 in shipping
costs for all the parts a semester. This is because often all the parts are not given up front thus
multiple orders are placed. The value was an estimate based on what the standard and two day
shipping rates were through Amazon. If all the parts could be ordered at once this value could be
cut in half or even free.
Page | 10

Future Process Map

The plan for the future is to get teams thinking ahead during the season to the point they
know what they want to do the next season. This would then allow for the budgeting to be
correct and have less guess work involved. It would ultimately save money because all the
planning is do ahead of time and hopefully all the required funds would be known.
Analyze Phase
Cause and Effect (Fish Bone) Diagram

The Fishbone or Cause and Effect diagram depicts the relationship between problems and their
final effects. The way this one is laid out the smallest arrows are showing the causes and how they make
the overall effect that leads to the final desired effect. Starting with the reason for the Request for
Proposal, the problems are justification, project budgets, and written requests. These problems are
important because currently no justification or project budgets are given. Teams just ask for funds to
Teams Analyze What
is Broken
Teams Come Up
With Desired
Upgrades
Teams Come up
With Justification
For Why Funds Are
Needed
Request For Funding
Form is Filed with
Dr. Hylton
Dr. Hylton Reads
Requests & Grades
Them
Decides Which
Projects Require
Immediate Funding
Decides Which
Other Projects Can
Be Funded
Budget Forecasted
for Possible
Expenses For
Upcoming Year
Budget Released
Required Projects
Get Funded
Page | 11

complete projects and have no reasoning. These are also only filed verbally, which is a problem as well.
This form solves all these problems. It makes teams actually think about what parts they need and give a
valid reason for it. These will be articulated on to a written document. This will become the RFF which
leads to Dr. Hyltons satisfaction. The grading system is similar in that it has two main reasons for its
construction. They are that it is a tedious process making assessments and requires plenty of thought
about funding projects. The grading system will take the answers to questions from the RFF and place
them into the system. This will eliminate the strenuous thought required to decide if this project is a
high priority and will speed up the process. These both will bring more satisfaction to Dr. Hylton. The
final is free time. This is not free time that Dr. Hylton would like to just sit back and do nothing but
rather allow him to focus on 3 other more important things. They are department business, teaching,
and grading papers. These are all things that the university requires him to complete for his job. They
take a precedent over this process. These things do require plenty of time. This new and improved
process for funding will allow him more time to complete these required tasks; which will also make him
quite pleased.
Relationship Diagram Currently

Currently Dr. Hylton feels that he is connected like the above diagram. He feels that even though
the cars are each teams responsibility that they have also become too closely related to him. They in a
sense have become his problem. He would like to move them farther away and make them directly the
teams problems.
Page | 12

Desired Relationship Diagram

This diagram is how Dr. Hylton feels the hierarchy should be. This shows that the cars are not
directed linked to their specific teams. These teams then have to answer to Dr. Hylton and he answers
to the E & T department. This would distance him from the cars and he would not have to be as hands
on all the time with the teams.
Projected Savings
The projected savings will be about $6300 in time wasted by Dr. Hylton and $565 in the
shipping. The idea is that even though the university will still be paying Dr. Hyltons salary, it will not be
on things that are not important to making sure the department is operational on a daily basis. The
original time estimated that 17.3 days were spent dealing with this process. The improvements
eliminate majority of Dr. Hyltons involvement to only include the time inputting RFF answers,
processing orders, and dispersal of funds. With all the time spent in other areas, it would mean that the
process would now only require 5 days a semester. The shipping cost reduction comes from the idea
that with teams now giving itemized budgets, this will allow for larger orders. These larger orders will
bring fewer shipping packages and hopefully even some free shipping. The worst case scenario is that if
nothing else, all parts could be ordered at once and cut the number of days required for shipping in half.
Improve & Control Phase
Root Cause Analysis
After looking through the reason for the current problems, It was discovered that the lack of
formal requesting system, selecting projects, and not having a written paper were the cause. Once these
processes are put in place, it should clear up any problems with the funding process.
Page | 13

Force Field Analysis

The biggest driving forces behind this project are Dr. Hylton, much needed justifications, and
saving time and money. Dr. Hylton has made it very much his point to have some system to help with
this process. Since he is the department head, what he wants he gets. No matter what, this system will
be used because he is pushing it. The other items such as justifications and savings explain themselves.
With all the wasted resources, this is absolutely needed.
What might hold the implementation of this process back is that the teams already do plenty of
paperwork for competitions, so doing another could be resisted. This also is a completely new system.
The old system did not require any formal thinking behind it so getting used to it could cause problems.
This will apply not just to the teams but also with Dr. Hylton. A new system like anything new requires
getting used to it. The other restraining force is that the old students know the old way. It may require a
few years for this system to become a seamless process. It may require all the current students to
graduate to implement fully.

Control Procedures
The system will need to be continuously pushed until it becomes a painless standard. The more
the system is pushed on the teams until they accept it the more successful it will become. Teams will
naturally resist but if they continue to be pushed towards it then it will become second nature. With the
student turnover, training will need to be continual. The new students coming in will need to
understand this system to help push this system. The system effectiveness will need to be evaluated
every semester. Ultimately, the idea is to have a working system from the start, but most likely it will
need to be tweaked. Making these adjustments will help provide the desired information.
Request for Funding Form
The final form has a series of questions that gather necessary information by a series of yes or
no questions with some required explanations. It also requires a detailed budget and parts. This will
allow for all the information to be located on one sheet of paper. These will require the teams think
ahead to what they want and why they need the desired items.
Page | 14

Grading System
The grading process takes all the answers from the RFF and places a point value to each. The
questions are more or less objective because they are yes or no answers. The explanation questions and
the budget are more subjective but they also are either acceptable or not. Once all these answers are
put in, the excel sheet produces a value. This will allow for required projects to out rank all the
unnecessary and unacceptable projects. This will also show when parts are broken and how it is
absolutely required to be completed.
Conclusion
The project as a whole was a success. Everything Dr. Hylton wanted was satisfied. I managed to
discover the root of the problem with over spending for the motorsports racing teams and offer a
solution. Dr. Hylton was extremely receptive to trying the new system. It was found that some real
improvements could be made within the motorsports department from the six sigma and lean
standpoint. Completing this project was a great opportunity to use the different tools and learning six
sigma from a hands-on approach. I thanked Dr. Hylton for the opportunity and wished him best of luck
with further use of this system to close the project for me.