Project Charter
Project Title
Business Case
Problem Statement
Goal Statement
Scope
Team
Reduction of Monthly Household Expense by using Lean Six Sigma
Due to high monthly expenses, we are not able to save money for investment. This scenario is creating sense of insecurity
for our future and needs to be addressed immediately
Data collected from April 2022 to March 2023 shows that average mothly expense of our household is Rs. 80000
Reduction of average monthly household expenses by 20% by November 2023
Monthly variable expenses
Family Members, Financial Advisor, LSS Expert
SIPOC Analysis
Project y Reduction of Monthly Househ
# Supplier Inputs
1
2
3
4
5
6
7
8
9
10
Scope
Start Point : Identify Financial Goal
End Point : 10 0
Exclusions : (Pl specify)
Stake Holders 1 4
2 5
3 6
Note : Attach Process Flow Chart before SIPOC
SIPOC Analysis
Reduction of Monthly Household Expense by using Lean Six Sigma
Process Step Output
Identify Financial Goal
Collect Data
Establish Category wise expenses
Analyze the data
Find Strategies to reduce expenes
Make action plan with responsibilities
oal
7 10
8 11
9 12
Customer
Sr. No. Monthly Expense Category Amount in Rs. Cumulative Cumulative %
14000
3 Monthly Groceries 12000 12000 12.38
1 Drinks & Beverages 8000 20000 20.64
8 Other Food Supplies (Vegtables etc) 8000 28000 28.90 12000
12000
2 Car Loan EMI 7500 35500 36.64
9 Dining/Eating Out 7500 43000 44.38
7 School Fees 6000 49000 50.57
10000
6 Payment- Credit Card 1 5000 54000 55.73
10 Shopping (Online/Offline) 5000 59000 60.89
27 Travel & Picnic Expenses 5000 64000 66.05 8000 8
8000
18 Fuel Expenses 4500 68500 70.69
16 Electricity 4000 72500 74.82
24 House Maid 4000 76500 78.95 6000
17 Medical Expenses 3500 80000 82.56
11 Society Maintenance Charges 3000 83000 85.66
13 Insurance 3000 86000 88.75 4000 2
12 Tution Fees 3000 89000 91.85
15 Mobile/Telephone Charges 2200 91200 94.12 20.64
14 Milk 2000 93200 96.18 2000 12.38
20 Internet 1200 94400 97.42
19 Gas 1000 95400 98.45
21 Water Charges 500 95900 98.97 0
22 Cable TV Subscription 500 96400 99.48
23 Salon/Parlour Expenses 500 96900 100.00
4 Two Wheeler Loan EMI 0 96900 100.00
5 Personal Loan EMI 0 96900 100.00
25 Payment- Credit Card 3 0 96900 100.00
26 Rent 0 96900 100.00
28 0 96900 100.00
29 0 96900 100.00
30 0 96900 100.00
Total 96900
14000
12000
12000 98.4598.9799.48100.00
100.00
100.
96.1897.42
94.12
91.85
88.75
85.66
10000 82.56
78.95
74.82
70.69
8000 8000 66.05
8000 7500 7500
60.89
55.73
50.57
6000
6000
44.38
5000 5000 5000
36.64 4500
4000 4000
4000 28.90 3500
3000 3000 3000
20.64
2200 2000
2000 12.38
1200 1000
500 500 500
0 0
0
120.00
99.48100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
298.4598.97 100.00
80.00
60.00
Amount in Rs.
40.00 Cumulative %
20.00
0 1000
500 500 500
0 0 0 0 0 0 0
0.00
Sr. No. Monthly Expense Category Amount in Rs. Cumulative Cumulative %
4500
23 Fish 4000 4000 19.11
22 Chicken 2800 6800 32.49
4000
24 Milk (30 liter) 2300 9100 43.48 4000
14 Green Vegetables (Mixed) 1500 10600 50.65
6 Cooking Oil (5 liter) 1250 11850 56.62 3500
8 Lentils (Toor Dal, 5 kg) 1000 12850 61.40
20 Apples 1000 13850 66.17
3000
1 Wheat (15 kg) 750 14600 69.76 2800
12 Onions (25 kg) 750 15350 73.34
3 Rice (10 kg) 600 15950 76.21 2500
2
13 Potatoes (20 kg) 500 16450 78.60
15 Tomatoes (10 kg) 500 16950 80.98 2000
5 Cheese/Butter 500 17450 83.37 4
9 Lentils (Moong Dal, 2 kg) 400 17850 85.28 1500
21 Oranges 400 18250 87.20 32.49
16 Coffee Powder (500 g) 350 18600 88.87
1000
18 Tea Leaves (1K g) 300 18900 90.30 19.11
19 Bananas 300 19200 91.73
10 Sugar (5 kg) 250 19450 92.93 500
4 Milk Powder (500 g) 250 19700 94.12
26 Spaghetti 200 19900 95.08 0
30 Shampoo (400 ml) 200 20100 96.03 h n
Fis icke li
2 Lentils (Masoor Dal, 1 kg) 180 20280 96.89
Ch (30
7 Lentils (Chana Dal, 1 kg) 180 20460 97.75 ilk
M etab
25 Yoghurt 100 20560 98.23 g
Ve
17 Eggs (12 count) 80 20640 98.61 n
ee
Gr
11 Bread (500 g) 80 20720 99.00
28 Toothpaste (150 g) 80 20800 99.38
29 Soap (4 bars) 80 20880 99.76
27 Salt (1 kg) 50 20930 100.00
Total 20930
4500
4000
4000
96.8997.7598.2
92.9394.1295.0896.03
91.73
3500
87.2088.8790.30
83.3785.28
80.98
78.60
3000 76.21
2800 73.34
69.76
66.17
2500 61.40
2300
56.62
2000 50.65
43.48
1500
1500
32.49 1250
1000 1000
1000
19.11 750 750
600
500 500 500
500 400 400 350
300 300 250 250
200 200 180 180
10
0
h r) d) r) g) les ) ) ) ) ) r ) s ) ) ) ) ) ) ) t
n
Fis icke lite ixe lite 5 k p kg kg kg kg kg tte kg nge 0 g K g nas kg 0 g etti ml kg kg hur
5 5 0 0 0 u 2 0 1 a 5 0 h 0 l, 1 1 g
Ch (30 s (M il (5 Dal
, Ap t (1 s (2 e (1 s (2 s (1 e/B al, Ora r (5 es ( Ban ar ( r (5 pag (40 a Dal, Yo 12
k e O r ea n ic e e es D e av u g e S o r D (
il l h ni
o R to to he g
wd a Le S wd po soo han
a
gs
M etab ing (Too W O ota ma C oon o o m Eg
g ok s P To M ee
P Te ilk
P a a
Sh s (M tils (
C
Ve Co ntil ls( ff M l
n Le nti Co
ee Le nti Len
Gr Le
120.00
99.76100.00
97.7598.2398.6199.0099.38
94.1295.0896.0396.89 100.00
3
80.00
60.00
Amount in Rs.
40.00 Cumulative %
20.00
0 250 200 200 180 180
100 80 80 80 80 50
0.00
g) ) ) ) t ) ) ) ) )
0 etti ml kg kg hur unt 0 g 0 g ars kg
50 agh 400 al, 1 1 g o 0 5 b (1
al, Yo 12 c d (5 te (1 p (4 alt
Sp o ( r D a D ( a s a S
po soo han s Bre pa So
m a Egg th
a C oo
Sh s (M tils ( T
l
enti Len
L
Process Capability Calculations
DPMO
No. of Units Checked 12
Total No. of Defects Observed 10
Max. Possible Defects in one unit (DPU) 1
DPMO = 833333.33
Sigma Level 0.5325784338983
normsinv(1-(Total Defects/Total Def Opportunities))+1.5
Fishbone Analysis for Primary Causes
Method Machine
Inefficient budgeting process Outdated appliances
Unmonitored discretionary spending High energy-consuming devices
Poor record-keeping of expenses Unoptimized utility usage
Excessive grocery shopping Family members' spending habits
Unnecessary subscription services Lack of financial education
Overuse of convenience products Number of dependents
Material Man
hbone Analysis for Primary Causes
Measurement
Inaccurate expense tracking
Lack of financial goals and benchmarks
No proactive alerts for overspending
Project y
High cost of living area
Weather-related expenses (e.g., heating, cooling)
Lack of local discounts or incentives
Mother Nature
Fishbone Analysis for Primary Causes
Shopping Expenses High Grocery Expenses
High Fuel Expenses High Electricity Expenses
hbone Analysis for Primary Causes
High Medical Expenses
Project y
High Restaurant/Junk Food Expenses
Brainstorming for Solutions
# Prioritised Causes
Substistute Combine
1 Online/Offline shopping Expenses high
2 High Fuel Expenses
3 Grocery Expenses are very high
4 High Electricity Charges
5 High restaurant and junk food expenses
6 High Medical Expenses
7 Salon/Parlour Expenses
8 Drinks & Beverages Expenses
9 Other Food Supplies (Vegtables etc)
10 Amazon/Nexflix/Cable TV Subscriptions
11 Cosmatics & related items expenses
12 Credit Card usage very high
13 Travel & Picnic Expenses
14 Internet & Mobile subscriptions
15
Cable TV Subscription
Salon/Parlour Expenses
Two Wheeler Loan EMI
Personal Loan EMI
Payment- Credit Card 3
Rent
g for Solutions
Possible Solutions
Adapt Modify Put To Other Use Erase/Eliminate Rearrange/Reverse
Effort & Benefit Analysis
Overall Efforts Benefit
Solution # Solution
Low/High Low/High
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Position (from EB Matrix)
# Solution Task 1 Target Date
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Solution Action Plan
Responsibility Task 2 Target Date Responsibility Task 3
Action Plan
Target Date Responsibility Task 4 Target Date Responsibility
Task 5 Target Date Responsibility
Process Control
Metric Responsibility Frequency of
Unit of (Who will
Process Step (Xs) Measure record) data collection
cess Control Plan
Type of
Control Who is going to
Chart What to respond respond
What will they do
(Corrective actions initiate)
Process Capability Calculations
DPMO
No. of Units Checked 12
Total No. of Defects Observed 2
Max. Possible Defects in one unit (DPU) 1
DPMO = 166666.67
Sigma Level 2.4674215661017
normsinv(1-(Total Defects/Total Def Opportunities))+1.5
Task
1 Start Tracking your household expense
2 Complete SIPOC
3 Complete Pareto L1 L2
4 Complete Fishbone L1 L2
5 Complete Process Capability Analysis
