Transcript Lean Six Sigma DMAIC Workshop Green Belt Part 3

RLM & Associates LLC
Your Lean Six Sigma & Project Management Trainers
Lean Six Sigma DMAIC Workshop
Green Belt Part 3
4/13/2015
Kraft Foods Green Belt
1
Building Effective Teams
Building Effective Teams
4/13/2015
Kraft Foods Green Belt
2
Why Teams?
 Improves productivity
 Better results (products, processes, services)
 Better able to handle complex problems
 Can handle many aspects of the business
 Differentiation through diversity of thoughts
 Improves morale, enthusiasm and creativity
Teams succeed over the work
of the lone genius!
4/13/2015
Kraft Foods Green Belt
3
High Performing Teams
Blanchard’s Model
Teams have a sense of Purpose,
they are Empowered,
they practice good Relationships & Communication,
they exhibit Flexibility,
then try for Optimal Performance,
they Recognize & Appreciate others
and have high Morale.
When all components are strong,
location or product becomes irrelevant
4/13/2015
Kraft Foods Green Belt
4
Characteristics of Effective Teams
 Effective teamwork encompasses:
–
–
–
–
Developing a charter
Defining team members’/leader’s roles
Establishing procedures and ground rules
Establishing relationships
Effective Teams
What do we do,
intend to do, and
why?(Purpose, Scope,
Goals, Selection)
Which individuals
do which activities
or tasks?
How do we feel
about each other,
talk with each
other, and affect
each other?
4/13/2015
How do we do
what we do? What
processes and
systematic
approaches do we
use?
Kraft Foods Green Belt
5
Team Growth Stages
All effective teams move though stages of growth.
A team must work through four developmental
stages to be successful. Team leader and members
must understand the different stages and adapt
their behavior to maximize team effectiveness.
Team Growth Stages
Forming
Performing
Storming
Norming
4/13/2015
Kraft Foods Green Belt
6
Conflict Resolution
In order for teams to move forward from Storm to Norm, teams
must understand:
– How to identify conflict and how to resolve it
– How to identify blockages and how to unblock
– How team blockages affect progress and how to unblock them
When managed correctly, conflict produces
new ideas, solves problems, expands
capabilities, and improves creativity
4/13/2015
Kraft Foods Green Belt
7
Helping Teams with Conflict
Listed below are some key steps for helping a team work
through conflict. This is a suggested approach, but team
leaders may use different steps. Team leaders may have to
alternate between these steps as they work through conflict
with the team.






4/13/2015
Clarify and summarize different points of view
Ask for points of agreement and disagreement
Look at situation from customers points of view
Get data
Place yourself in the other person‘s position
Ask how to resolve differences
Kraft Foods Green Belt
8
Define Phase Checklist
 Is the project charter complete, accurate, and
SMART?
 Is the as-is process mapped appropriately?
 Are Critical Customer Requirements documented?
 Have any quick wins been identified?
–If so, implemented?
4/13/2015
Kraft Foods Green Belt
9
Measure
Measure
4/13/2015
Kraft Foods Green Belt
10
Measure Phase Process Flow
Identify Measurement
and Variation
Perform
Measurement System
Analysis
Determine
Data
Type
Perform Data
Collection
Develop Data
Collection
Plan
Perform Capability
Analysis
4/13/2015
Kraft Foods Green Belt
11
Measure Phase Objectives
 Define the process measures
 Identify the types, sources, and causes of variation in the
process
 Determine data requirements
 Develop a data collection plan
 Perform Measurement System Analysis
 Conduct data collection
 Determine baseline capability of the project as SQL
–(Sigma Quality Level)
4/13/2015
Kraft Foods Green Belt
12
Why Measure?

Measurement allows teams to…
– Establish baseline performance
– Isolate sources of variation
– Identify areas in which improvements can
be made
4/13/2015
Kraft Foods Green Belt
13
Value Performance Measures –
Customer Value Achieved?
Suppliers
Process
Inputs
Input
Measures
Business
Processes
Process
Measures
Important Decisions
Based on Linking
Customer Expectations
to Process
Performance
4/13/2015
Kraft Foods Green Belt
Process
Outputs
Critical
Customer
Requirements
Output
Performance
Measures
Customer Value
14
Input, Process and Output Indicators
Input
Indicators
Process
Indicators
 # of customer
inquiries
 Type of customer
inquiries
 # of orders
 # of positions open
 Type of position open
 Accuracy of the
credit analysis
 Timeliness of the
contract submitted
for review
 Cost per
transaction
 Time per activity
 Amount of rework
 Turnaround time
 Variability of an
activity
4/13/2015
Output
Performance
Indicators
 Percent defective
 Number of errors
 Total response
time
 Invoice/billing
accuracy
 Revenue
These should all appear on
your process map
Critical Customer Requirements
Critical to the Process
Kraft Foods Green Belt
15
Process Elements/Indicator Relationships
Start Boundary __________
Suppliers
End Boundary ____________
Inputs
Outputs
Customers
Process
Input Indicators
Process Indicators
Output Indicators
Measures that evaluate the
degree to which process
inputs, provided by suppliers,
are consistent with what the
process needs to convert into
customer-satisfying outputs.
Measures that evaluate the
quality of the transformation
processes – the steps used to
convert inputs into customersatisfying outputs
Measures that evaluate
dimensions of the output –
may focus on the performance
of the business as well as that
associated with the delivery of
services and products to
customers.
Examples:
 # of customer inquiries
Type of customer inquiries
# of orders
# of positions open
Type of position open
Accuracy of the credit
analysis
Timeliness of the contract
4/13/2015
Examples:
 Availability of service
personnel
 Time required to perform
credit review
 % of non-standard
approvals required
 # of qualified applicants
 Total cost of service
delivery
 Total overtime
hours
Kraft Foods Green
Belt
Examples:
 # of calls/hour taken by
each service rep
 2nd year customer retention
figures
 Total # of meals delivered
 % customer complaints
16
More on Measurement Considerations
One rule holds regardless of the measures you
select; try to use as few indicators as possible
 There is a cost/benefit and relevance relationship
to measuring. Too many measures are costly,
unproductive, and may divert attention from
critical areas.
 Not enough or incorrect process indicators will
not allow you to identify defects before they
occur
4/13/2015
Kraft Foods Green Belt
17
CCRs and Multiple Output Indicators
Some CCRs may be
measured in terms of one
specific expectation a
customer has. Others may
require several output
indicators. The table shows
how one CCR can have one
or several associated output
indicators.
This table lists the second
CCR from the above table,
but shows it as three
different critical customer
requirements associated with
the delivery of a vehicle.
Regardless of how the CCR is
stated, teams must be sure
to identify all of the CCRs
associated with a process
production service and make
sure that the CCRs are
measured by the output
indicator.
4/13/2015
Output Indicator
Critical Customer Requirement
Product delivery cycle time
from the completion of the
customer order to the delivery of
the product
Product is delivered within three
hours of order taken
number and type of vehicle
specifications delivered correctly
actual delivery time vs.
promised
delivery time for each vehicle
number of times vehicles were
delivered to location other than
what is specified on agreement.
Right vehicle is delivered at the
right time tot he right location
Output
Output Indicator
Critical Customer Requirement
Number and type of vehicle
specifications
delivered correctly
The vehicle delivered meets
the vehicle specifications as
described in the contract
actual delivery time vs.
promised delivery
time for each vehicle
The vehicle is delivered within
the time specified in the contract
number of times vehicles were
delivered to location other than
what is specified on agreement
The vehicle is delivered at the
location specified in the contract
Kraft Foods Green Belt
18
Indicators
Input
Indicators
4/13/2015
Process
Indicators
Kraft Foods Green Belt
Output
Indicators
19
Measurement Planning
Measurement Planning
4/13/2015
Kraft Foods Green Belt
20
Variation
Variation means that a process does not produce exactly the
same result every time the product or service is delivered
Variation exists in all processes
Measuring and understanding variation in our business
processes helps identify specifically what the current level of
performance is and what needs to change in order to reduce
the variability and therefore reduce the defects delivered to
customers
4/13/2015
Kraft Foods Green Belt
21
Two Basic Types of Data
Attribute Data
Variable Data
–Go/No Go
–Time
–Good/Bad
–Pass/Fail
–Temperature
–Size
Whether
something is
happening or not
4/13/2015
Information about
what is happening
Kraft Foods Green Belt
22
Two Basic Types of Data
Before data collections starts, classify the data into different
types: continuous or discrete. This is important because it will:
–
–
–
–
–
Provide a choice of data display and analysis tools
Dictate sample size calculation
Provide performance or cause information
Determine the appropriate control chart to use
Determine the appropriate method for calculation of Sigma
Continuous or variable
Discrete, categorical or attribute
Count or categories
Measured on a continuum
Objective
 Time
 Money
 Weight
 Length
4/13/2015
Subjective
 Satisfaction
 Agreement
 Extent
 Type of
error
Objective
 Count defects
 # approved
 # of errors
 Type of
document
Kraft Foods Green Belt
Subjective
 Yes/No
 Categories
 Service performance
rating (good, poor)
 Satisfaction
 Agreement
23
Obtaining the Measurements
Data collected will only be as good as the collection system itself. In
order to assure timely and accurate data, the collection method should
be simple to use and understand. There are several methods. The most
common are:
– Checksheet - a simple log of ―tick marks‖ representing the volume
and type of work
– Time stamps - a recording of the time that each activity begins and
ends
Reason
Missing
Incorrect
Example: Checksheet
Applications Returned for
Missing Data
Address
Xxxxx
Xxxxx
Phone
Xxxx
Xx
Employment Info
Xx
Xxx
All data can be collected manually (writing in the log, recording the
time, etc.) or automatically. Automatic data collection assures accurate
and timely data, and removes the burden of collection from the operator
of the process. But, it can be very expensive to set up. It usually
involves computer programming and/or hardware. For most initial
efforts, a paper log is the most cost effective form of data collection
4/13/2015
Kraft Foods Green Belt
24
Data Collection
Identity
Measures
Measurement
management starts
with a data
collection
methodology.
Step 1
Develop Operational
Definitions for Measure
Step 2
Develop Measurement
Plan
Step 3
Collect Data
Step 4
Display and Evaluate
Data
4/13/2015
Kraft Foods Green Belt
25
Step 1: Develop Operational Definitions
Step 1: Operational Definition
An operational definition is a concept that helps guide
the team‘s thinking on what they need to measure as
well as the key attributes of the measure: what, how,
and who. It provides the foundation for the team to
reach agreement and build consistency and reliability
into data collection. This helps ensure any person
using the definition will be measuring the same thing.
 Provides everybody with the same meaning
 Ensures that consistency and reliability are built
in up front
 Describes the scope of the measure (what is
included and what is not included)
4/13/2015
Kraft Foods Green Belt
26
Step 2: Develop a Measurement Plan
Step 2: Measurement Plan
Determining current process performance usually requires the
collection of data. When developing a measurement plan ensure
that:
 The data collected is meaningful
 The data collected is valid
 All relevant data is collected concurrently
Questions to Answer
What precise data will be collected?
Performance measurement?
Causes of process deficiencies?
Do we analyze all relevant data or a sample?
What is the right sample size? What is the right frequency?
What will be the sample selection method?
What tools are necessary?
What logs will be kept?
4/13/2015
What formats will be used?
Do we need a computer?
Kraft Foods Green Belt
27
Step 2: Develop a Measurement Plan
Questions to Answer
What logistical issues are relevant?
Who will collect data?
Where is the data located?
When will it be collected?
What additional assistance is required?
What you want to do with the data?
Used daily, weekly, etc.
Identify trends in the process data
Identify deficiencies in the process
Demonstrate current process performance
Identify variation in a process
Identify a cause and effect relationship
4/13/2015
Kraft Foods Green Belt
28
Step 2: Develop a Measurement Plan
Example: Cycle time - loan application processing
Performance
Measure
Operational
Definition
Data Source
and Location
Sample Size
Who Will
Collect the
Data
When Will
Data be
Collected
How Will
Data be
Collected
Other Data
that should
be Collected
at the same
time
Time to
Process a
Loan
Application
Fax date,
time
Loan
application
289
Tim Smith
Dave Man
Decision
fax
Date, time
Representative fax
center
During the
first week
of the
month
10/1-10/7
Randomly
selected
from
September
Type of
loan
Amount of
loan
Dealer
Time of
day
Day of
week
Considerations for other data that should be collected at the same time:
How will you display the data?
What do you want to do with the data after it is collected?
How do you want to stratify the data?
What data might you need to identify and verify root cause?
Data collection is a balance between time, money and accuracy (getting
the data you need).
4/13/2015
Kraft Foods Green Belt
29
Measurement Planning
Performance
Measure
4/13/2015
Operational
Definition
Data Source
and Location
Sample Size
Who Will
Collect the
Data
Kraft Foods Green Belt
When Will
Data be
Collected
How Will
Data be
Collected
Other Data
that should
be Collected
at the same
time
30
Team Exercise
 Complete Process Indicators Template
 Complete Measurement Plan
4/13/2015
Kraft Foods Green Belt
31
Measurement Planning
Performance
Measure
4/13/2015
Operational
Definition
Data Source
and Location
Sample Size
Who Will
Collect the
Data
Kraft Foods Green Belt
When Will
Data be
Collected
How Will
Data be
Collected
Other Data
that should
be Collected
at the same
time
32
Step 3: Collect Data
 Follow the plan —note any deviations from
the plan
 Consistency —avoid bias
 Observe data collection
4/13/2015
Kraft Foods Green Belt
33
Data Collection
4/13/2015
Kraft Foods Green Belt
34
Measurement System Analysis/Gage R&R
Measurement System
Analysis/Gage R&R
4/13/2015
Kraft Foods Green Belt
35
The Importance of Measurement
System Analysis (MSA)
 Is the importance of conducting an MSA being
overlooked?
– Many resources can be wasted trying to improve
a process when a major source of variability is
the measurement system
– More consideration needs to be given to the
measurement system before beginning process
improvement work
 The measurement system is only one source of
variability when measuring a product or process
 The purpose of a measurement system is to better
understand the sources of variation that can
influence the results produced by the process under
investigation
4/13/2015
Kraft Foods Green Belt
36
Repeatability (Precision)
The variation between successive measurements
of the same part, same characteristic, by the
same person using the same instrument. Also
known as test/re-test error, used as an estimate
of short-term variation.
4/13/2015
Kraft Foods Green Belt
37
Reproducibility
Reproducibility is the variation in the average of
the measurements made by different appraisers
using the same measuring instrument when
measuring the identical characteristics on the
same part.
4/13/2015
Kraft Foods Green Belt
38
Bias Effects
Average of measurements are different by a fixed
amount. Bias effects include:
– Operator Bias–Different operators get
detectable different averages for the same thing
– Machine Bias–Different machines get detectable
different averages for the same thing, etc.
– Others–Day-to-day (environment), fixtures,
customer and supplier (sites)
Instrument 1
4/13/2015
Kraft Foods Green Belt
39
Stability
The absence of assignable causes of
variation; the property of being in
statistical control. The consistency of
measurements over time.
4/13/2015
Kraft Foods Green Belt
40
Discrimination
 Discrimination is the capability of detecting even small
changes in the characteristic
 If unacceptable may not be appropriate to identify
process variation or quantify individual part characteristic
values
 Cannot detect variation of process and special cause
variation
4/13/2015
Kraft Foods Green Belt
41
Process Capability and
Sigma Quality Level
Process Capability and Sigma
Quality Level (SQL)
4/13/2015
Kraft Foods Green Belt
42
Process Capability –
What is it?
Quantifiable comparison of
Voice of Customer (spec limits)
to Voice of the Process (control limits).
 Most measures have some target value and
acceptable limits of variation around the target
 The extent to which the “expected” values fall
within these limits determines how capable the
process is of meeting its requirements
4/13/2015
Kraft Foods Green Belt
43
Learning Objectives
 Learn prerequisites for conducting process
capability studies
 Learn how Cp and C
4/13/2015
pk
are calculated
Kraft Foods Green Belt
44
Process Capability Ratio – C
 Ratio of total variation allowed by the specification
to the total variation actually measured from the
process
 Typical goals for Cp are greater than 1.33 (or 1.67
for safety items)
If Cp< 1, then the variability of the process
is
greater than the specification limits
4/13/2015
Kraft Foods Green Belt
45
p
Process Capability Ratio – C
4/13/2015
Kraft Foods Green Belt
46
p
Process Capability Ratio – C
This index accounts for the dynamic mean shift in
the process – the amount that the process is off
target
Ratio of 1/2 total variation allowed by spec. to
the actual variation, with only the portion
closest to a spec. limit being counted
4/13/2015
Kraft Foods Green Belt
47
pk
Uses of Capability Analysis
 Performed on new equipment as part of the
qualification and approval process
 Performed on existing processes as a means of
establishing a baseline of current operations (so it‘s
possible to tell when improvement has occurred)
 When done periodically, is a means of monitoring
wear and tear on equipment, and deterioration of a
process for whatever reason (material, personnel,
environment, etc.)
 Can be done on any process with a spec established,
manufacturing or transactional (spec. is needed for
the values in numerator), and has a capable
measuring system (needed valid denominator value)
4/13/2015
Kraft Foods Green Belt
48
Capability Action Plan
 Give highest priority to parameters with Cpk‘ s of less than 1.0
(center the dimension, reduce the variation or both)
– If possible, get tolerance relief. (If product/process is
mature, and there have been no customer problems, what
is the need for this formal spec when another ―de facto‖
spec has been used historically?)
– 100% inspect, measure and sort
– Chart using the data from the measurements
 Use SPC on parameters with Cpk‘ s between 1.0 and 1.33 (or
1.67 if safety related)
 Consider transitioning to First Piece checks for parameters over
1.33 (or 1.67 if applicable), and SPC charting of First Piece and
audit data
4/13/2015
Kraft Foods Green Belt
49
Sigma Quality Level – Attribute Data

Key Terms Required
– Unit (N)
– Defect (D)
– Opportunity (O)
– DPMO
4/13/2015
Kraft Foods Green Belt
50
Calculating SQL – Attribute Data
The first step is to define:
– The Unit (N)
– The Defect (D)
– The number of
opportunities for
generating a defect (per
unit) (O)
4/13/2015
Kraft Foods Green Belt
51
Calculating SQL – Attribute Data
DPMO =
Total number of defects
X 1,000,000
Total units x Opportunities per unit
DPMO = (D/(NxO)) x 1,000,000
4/13/2015
Kraft Foods Green Belt
52
DPMO to SQL
Convert DPMO to Sigma Quality
Level (SQL) using the Z table
4/13/2015
Kraft Foods Green Belt
53
Z Table to Convert DPMO to Sigma Level
4/13/2015
Kraft Foods Green Belt
54
Example
 500 Part Orders(N)
 3 Opportunities each order (O)
o Late
o Wrong Part
o Wrong Address
 57 errors are made (D)
 12 caught
 45 observed by customer
What is the Sigma Quality Level (SQL)?
4/13/2015
Kraft Foods Green Belt
55
Calculating SQL – Attribute Data
4/13/2015
Kraft Foods Green Belt
56
Costs Are Always Kept in Mind
There is an optimum quality level beyond which the
costs of quality improvement exceed the expected
cost savings from a reduced number of defects
4/13/2015
Kraft Foods Green Belt
57