Transcript Six Sigma Black Belt Training

LSSG Green Belt
Training
Define: Getting Started Alignment.
1
DMAIC Six Sigma - Define

The Big Picture

Control

Improve
Identify Customers

Analyze

Define

Customer requirements and
expectations for product or
service
Complete Charter

Measure
Alignment
Identify opportunity, project
boundaries, leadership and team
Understand Process

Map business process and
identify stakeholders
2
Aligning Project with Broader Goals
MISSION
GOALS AND
OBJECTIVES
STRATEGY
PROJECTS
3
Alignment – Mission / Purpose
Corporate Mission Statements
“We are ladies and gentlemen serving ladies and gentlemen.”
Ritz-Carlton
“People, Service, Profits”
Federal Express
Typical Organizational Mission Statement
Our mission is to assist in designing and implementing a team concept
of management throughout all levels in our plant that will facilitate
employee involvement for the mutual benefit of all in achieving our goal
of continuous improvement in safety, environment, quality,
production and cost.
4
Alignment - Goals and Objectives
“SMART” Objectives
Specific
Measurable
Attainable
Reasonable
Tied to Time Frame
Unclear Project Objective:
• Remove CLS data entry
during Shipping Process
Clearer Project Objective:
• Reduce shipping paperwork
data entry errors by 25% by
June 2000.
5
Alignment - Projects
PROJECT SCOPING
Initial
Issue
Why?
Second
Level
Why?
Third
Level
Why?
?
Perform project scoping until you cannot
answer why.
6
Project Prioritization
Six Sigma
Project
High
Med
Descriptors
High
Low
Med
Med
Selection
Low
Low
High
Rating
< 3 Mos
4 Mos
5 Mos
6 Mos
> 6 Mos
5
GO
GO
Caution
Caution
BEWARE
4
3
2
1
Tool
Weighting (weight can be changed based on business conditions)
40%
Project Name
Project A
Project B
Project C
Project D
Project E
Project F
Project G
Project H
Project I
Project J
Business
Impact
30%
10%
Probability of Resources
Success
Required
20%
Time to
Complete
click to
sort
Business Impact
Growth
Cost Reduction
Quality Improvement
Total
Total
5
4
2
5
4.40
5
4
5
3
4.30
5
2
4
5
4.00
2
4
3
5
3.30
3
3
5
3
3.20
2
5
1
1
2.60
2
4
3
1
2.50
1
3
3
4
2.40
2
2
2
4
2.40
1
1
4
5
2.10
Probability of Success
Project Risks
Project Constraints
Resources Required
Expert Requirements
Time/concurrent use
Capital Requirements
0.00
0.00
0.00
0.00
0.00
Time to Complete
Project Length
Project Team Composition
0.00
0.00
0.00
7
Chartering a Project
Goals
 Problem Statement
 Project and Process Mission
 Objective Statement




Enables project owner to
set expectations and
creates ability to get “buy in”
Obtain Commitment
Set Roles and
Responsibility
Set Project Schedule
Secondary Goals
 Acquire Resources
 Focus on Project Objective
Project Name
Business Unit
Department
Start Date
Project Budget
Contact Information
Project Stakeholder
Project Champion
Process Owner
Black/ Green Belt
Team Members
Name
Phone number
E-mail
Process Name
Product/ Service Description
Objective
Project Y
Baseline
Forecast
Objective
Project Scope Statement
Assumptions/ Constraints/ Risk
Benefits
Signature and Date
8
Selecting the Right Project Focus

Reduced Time

Improved Quality

Reduced Cost

Improved Customer Satisfaction

Combinations of the Above
9
Kristy
Tammy
Bobby
Gregory
Vincent
Steve
Antonio
Jim
Roles and Responsibilities - RASCI Chart
Project
Gantt
R
A S R
- C
- S
Project
FMEA
R
I
-
-
-
C
S -
P.S.
Software
A
I
R C
I
A
I

Has Responsibility for
decision/execution and making
it happen. The “prime mover.”

Approval required before
taking action

Support member for decision
or activity

Coaches R before
plans/decisions are finalized

Is kept Informed
R
10
Gannt Chart - Scheduling
Schedule of Activities
Activity
Identify Sale with 80% Probability
A
Identify Available Trucks
B
Contract for Additional Trucks
C
Close the Sale
D
Develop Promotional Materials
E
Implement promotion
F
Debrief Leanings/ Write Final Report
G
Week
1
2
3
4
5
6
7
8
9
10
11
12
11
Listening to the Voices
Voice of the
Customer – Quality, Price, Responsiveness
Process – Process Flow, Value Stream, Control, Capability
Employee – Satisfaction, Worth, Recognition, Safety
Also remember the other stakeholders –
 Owners – Returns, Growth, Security
 Suppliers – Involvement,Growth,Price,Stability
12
Voice of Customer (VOC)
Goal - To identify how to create value to customers
Steps:
 Collect raw data – Interviews, Surveys

Group data into themes – Affinity Diagrams

Identify underlying issues (drivers) – Kano Analysis

Define measurable variables (Critical-to-Quality, or
CTQ, variables) – House of Quality (HOQ)
“I do not like dealing
with your company”
VOC
Products not
delivered on time
5 Whys
Need 10 day
lead time
CTQ
13
Customer Satisfaction Survey
Goal: to measure the quality of a product or service
Uses:

To identify areas which need
improvement
ways to gain back and retain customers

To identify gaps in
management and
customer’s point of view

To acquire feedback for
improvement
14
Qantas Airways
Survey of Passenger Needs – Order of Priority
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
No lost baggage
No damaged baggage
Clean toilets
Comfortable seats
Prompt baggage delivery
Ample leg room
Good quality meals
Prompt reservation service
Friendly/efficient cabin crew
Clean and tidy cabin
Comfortable cabin temp/humidity
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
Assistance with connections
Being kept informed of delays
Transport to cities
Accurate arrival information
Well-organized boarding
Quick/friendly airport check-in
Self-service baggage trolleys
On-time arrival
Provision of pillows/rugs
Assistance with customs
On-time departures
Source: Juran Institute
PIMS Model of Customer Satisfaction
Goal: to determine the performance and importance of key
customer satisfaction drivers
Use: To identify high-priority issues
5
1
2
3
4
5
Performance
1 2 3 4 5
Importance
1 2 3 4 5
Importance
Question
’
2
6
1
5
High
Performance/
High
Importance
1
High
Performance/
Low
Importance
Low
Performance
3 /High
Importance
Low
Performance/
Low
Importance
3
1
Performance
Source: Boston Consulting Group
16
Affinity Diagrams
Goal: to organize abstract thinking about a problem
Uses: To brainstorm various possibilities about how to
solve a problem or to scope project when a team cannot
clearly decide what to do next.
Legend:
Idea/Need
Statement
Group
Title
Group all Needs and title them
17
Kano Analysis
Goal:
To model customer satisfaction as it relates to product
Use:
To identify customer needs, determine requirements,
develop concept, or to analyze competitive products
Customer
Satisfaction

Levels of customer
expectations



Dissatisfiers
Satisfiers
Delighters
Delighters
Satisfiers
Low
performance
High
Performance
Dissatisfies
Customer
Dissatisfaction
18
House of Quality
Goal: to model customer requirements into critical to quality characteristics
Use: To prioritize areas for improvement or to design new produces or services
6
Identify Technical
Requirement
Correlations
Identify Technical
Requirements
3
1
Identify Customer
Requirements
5
Find Relationships
Prioritize Customer
Requirement
2
Perform
Competitive
Evaluation
7
Perform Technical
Competitive Evaluation
4
Prioritize Technical
Requirement
9
Perform Final
Evaluation
8
19
Correlation
Positive
Competitive
evaluation
X = major competitor
3
4
XA
A
A
Absolute Weight
3.2*3+3.8*1+2.5*1
Relative Weight
3.2*3+6.1*1+2.5*1
4
3
2
1
Target Values
A
X
X
A
X
A
3.2
Difficulty (qualitative 1-5) 5
A
A
A
A
A
A
A
A
XA
X
X
4.0
3.5
4.8
4.5
4.9
4
4
3
2
3
Absolute Weight
15.9 92.5 66.9 46.2 18.2 32.6
Relative Weight how’s
9.2 101.3 84.9 67
55.4 34.9
XA
3.8 4.0 1.6 6.1 24.8
X A
A
2.5 4.2 1.0 2.5 10.2
Relationships
Strong
=9
Moderate
=3
Weak
=1
5
8
5.0 4.6 1.5 7.5 31.2
4.5 4.4 1.1 4.9 20.7
Briefness
5
X A
XA A
A
Clarity
3.2 3.4 1.0 3.2 13.1
7
% Importance Abs Weight
Ease of use
Accuracy
Technical
evaluation
(5 is best)
5
Abs Weight = Ratio*Importance
2
Ratio = Target Value/ Company Now
1
Relevance
4
2
A = Us
Target Value (qualitative)
Table of
Contents
Choice of
Language
Amount of
Coverage
Use of
Graphics
Timing of
Renewals
Customer
Requirements
Strong Positive
Importance to Customer
1
3
6
Negative
Formatting
Style
Training Manual
Technical
Requirements
HOQ Example
20
What is a SIPOC?
Requirements
Requirements
S
I
P
O
C
Suppliers
Input
Process
Outputs
Customers
Input Boundary Output Boundary
Suppliers - Provide inputs to the process
Input - Resources required by the process
Input Boundary - Specifies when the
process starts
Input Requirements - What the process
requires of the inputs. Measurable,
quantifiable.
Process - The activity which transforms
inputs to outputs
Output Boundary - Specifies when the
process ends
Outputs - Delivered products or
services
Customers - Stakeholders who place
the requirements on the outputs
Output Requirements - What the
customer requires of the outputs.
Measurable, quantifiable.
21
Input Output Analysis - SIPOC
22
Voice of the Process (VOP)
Goal of Voice of the Process/Voice of the Data



Eliminate Blame/Fear
Determine if process is predictable
Identify causes of problems
23
Process Mapping
Goal: to understand a system or a process
Use: To identify customers/supplier relationships, value-added work, potential
opportunities for improvement, and to eliminate redundant steps
Example: Order Fulfillment Process
Inputs
Sourcing
Packaging
Shipping
Customer
Service
Outputs
Environmental Analysis
Develop RFP
Conduct Bid Process
Select Supplier
Implement Supplier
Change
24
Process Map Example
Hospital Admittance - High Level Process Map
Patient
Arrival
Patient Arrival
via Paramedics
Administration
Triage
Parametric Arrival/ Code
1?
Pre- Assessment
Doctor
Assessment
Code 1 Wait
Yes
(10- 40min)
min)
(5-20
Doctor Assessment
(5- 10 min)
No
Code 2 Wait
( 10- 40 min)
(11-50
min)
Patient Arrival
via Walk In
Administration
( 4-5 min)
Triage/ Code
Determination
(1- 3 min)
Been though
Admin?
Code 3 Wait
( 40- 120 min)
min)
(31-120
Yes
Patient Arrival
via Drag In
End
Been assessed by
doctor?
No
Code 4 Wait
( 120+ min)
Yes
No
25
Value Stream Mapping
High level delivery path (flowchart or process map) from customer
request to delivery of product or service – includes materials, people,
information
26
Service Family Analysis
Delivery
Service
Package
Drop-off
Goes to
Warehouse
Goes by
Truck
Overnight
X
X
2-Day
Delivery
X
X
X
5-Day
Delivery
X
X
X
Goes by
Plane
Delivered
to
Customer
X
X
X
X
X
Hand
Delivery
X
Schedule
Appoint ment
Check -In
Prep
Doctor
Visit
Pay/
Check
Out
Chronic
Illness
X
X
X
X
X
Acute
Problem
X
X
X
X
X
X
X
X
X
X
Patient
Type
Well
Person
Check - Up
Used to determine if a
Product or Service Family
should be flowcharted and
analyzed together
The processes seem
different, but are not!
27
Cost of Quality
Internal Failure
External Failure
Prevention Cost
Appraisal Cost
Traditional COQ
1
60
10
40
100
20
0
1-10-100
Rule
COPQ - The Language of Management
Six Sigma COQ
60
$
40
LSS
$ Savings
External Failure Costs
Internal Failure Costs
Current
COPQ
Appraisal Costs
20
0
Prevention Costs
LSS
Begins
Months
28
The Downside of Quality Cost Analysis

Focus on the company’s costs and not the customers
costs
The customer suffers quality related costs as well!
 Return costs, wasted time, lost business, possible
injury or death
“If Six Sigma’s purpose is to improve customer satisfaction, it’s just plain wrong
to measure success by dollars saved. The best measure of better quality is
growing market share. Six Sigma shouldn't be a cost reduction program.”
James Harrington
“If improvements do not lead to market share growth, the organization cannot
promise job security, and downsizing will result since less people are needed.”
Anand Sharma, Quest for the Perfect Engine
29
VOE Voice of Employee
Goal – to identify how to create value to the organization and
its employees


Empower Employees
Obtain Input from Employees

Employees survey

Suggestion system

Feed back from teams

Obtain Input from Teams

Manage Meetings

Roles for meeting

Tools for effective meetings
Tools: Suggestion System,
Employee Surveys, Team
Process Check,
Brainstorming Tools
30
Empowerment
Levels of
Empowerment
Just Do It!
Do It and Report Back
Make Recommendation
Ask if you can
Wait Until told
“Creation of conditions within organizations which result in the ability of individual
people to contribute their maximum potential energy, creativity, quality efforts, and
effectiveness to achieving the mission and strategy of the organization.”
Stephen Covey
31
Neutral
Disagree
Strongly
Disagree
Avg Score
15 Part of my job is to measure the success of the work that I do.
17 Most of our employees conduct themselves with honesty,
integrity and professionalism.
1 We often create teams to solve important problems or to
improve our work processes.
7 Teamwork is an important part of my performance evaluation.
21 I feel that the company is headed in the right direction.
14 Most of the people in our company work well in teams.
18 We embrace diversity of thought, ideas, and perspective in our
6 I [usually] rarely know the purpose and agenda for upcoming
team meetings. ( R )
12 I have created flowcharts of work processes.
10 I always feel that my opinions and feelings will be understood,
even if team decisions don’t go my way.
8 I use quality tools in my work teams.
16 I understand the value of statistical process control (SPC).
5 I am encouraged to take reasonable risks without fear of
9 Our company mission is clear, simple and known by everyone.
It inspires and guides people’s actions.
Agree
Q# Question:
Strongly
Agree
Employee Survey Results
28%
50%
13%
10%
0%
4.0
15%
65%
15%
5%
0%
3.9
13%
15%
18%
10%
5%
68%
55%
53%
58%
53%
15%
25%
23%
20%
23%
3%
3%
3%
13%
20%
3%
3%
5%
0%
0%
3.9
3.8
3.8
3.7
3.4
3%
0%
13%
30%
33%
20%
50%
35%
3%
15%
3.4
3.4
3%
5%
10%
5%
48%
30%
35%
40%
35%
58%
35%
38%
13%
8%
18%
15%
3%
0%
3%
3%
3.4
3.3
3.3
3.3
0%
40%
38%
18%
5%
3.1
Note: For presentation purposes, reverse ( R ) questions were changed to allow for ranking of all questions together.
32
Suggestion Systems
Employee Suggestions System Implementation



Can be the lifeblood of an organization
Formal suggestion systems often fail
Create open culture
In 1989, Japanese companies averaged 37 ideas per employee, of which 87% were
implemented; as compared to one idea per employee every 8 years in the U.S.
Source: All You Gotta Do Is Ask by Yorke and Bodek
33
Teams
When Should a Team be Formed?
Cross-functional
Types of Teams
Functional
Cross Functional
Self Managed
expertise
Involvement, motivation and commitment
Integrated, unified direction
Collective strength
Management of complexity
Buy-in
Creativity
Time
Definition:
A group of individuals who are committed to achieve common objectives, meet
regularly to identify and solve quality problems, work and interact openly and
effectively together, produce high quality results
34
New Management Roles
Management
Secure Resources
Create Vision
Design New System
Coach Employees
Customer
Interaction
Resources
Employees
Remove Barriers
Provide Support/Encouragement
Willingness to Deal with Sensitive Issues
35