Six Sigma Tool Navigator: The Master Guide for Teams

Tool description

The activity cost matrix is a useful cost data collection tool for the purpose of planning and budget preparation. In order to identify which personnel are involved in a major project, direct and supporting activities are listed and percent contribution estimated for each contributor.

Typical application

• To determine departmental activities and associated cost data.

• To schedule personnel for completing specific project activities.

• To compare the ratio of contribution (effort) against the total project budget.

Problem-solving phase

Typically used by

before

• Information needs analysis

• Data collection strategy

• Interview technique

• Audience analysis

• Time study sheet

after

• Deployment chart (down-across)

• Action plan

• Monthly assessment schedule

• Gantt chart

• Major program status

Notes and key points

• Use actual timekeeping data from previous project closing documentation to estimate percent cost of the various activities.

• To increase the validity of data to be stated in the activity cost matrix, department sources or subject matter experts (SME) should be contacted for specific information.

Step-by-step procedure

• STEP 1 The first step requires a search for a previously completed project's historical data. Timekeeping (activity time) and cost data will greatly assist in the completing of an activity cost matrix. See example Training Activities—Percent Cost.

• STEP 2 Interviews are conducted with department personnel or subject matter experts. Information on percent contribution to total project effort is collected.

• STEP 3 Lastly, an activity cost matrix is completed and dated as shown in this example.

• STEP 4 A copy is given to all involved parties for their review and feedback.

Example of tool application

Training Activities — Percent Cost