SNHU The Measure Phase of the DMAIC

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timer Asked: Jan 31st, 2019
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Question Description

Using you Project Charter from last week for your selected project (attached), do the following for The Measure Phase of the DMAIC:

  • Process Map it
  • Develop a data collection plan
  • Then collect (or create) data to measure the process capability of Y and determine its sigma level.

For additional details, please refer to the Short Paper/Case Study Rubric document.

Also, please use my attached Project Charter (part 1 and part 2)– which is needed to do this assignment. My project is a service project and I need help with the phase of the DMAIC.

RUNNING HEAD: The Define Phase Week 5: The Define Phase Southern New Hampshire University Submitted to: Mark Fournier Kimberly D. Hall RUNNING HEAD: The Define Phase 2 Project Scope Statement Project Background American Health Care (AHC), a managed care organization located in Baton Rouge, LA, is known for holding the Baton Rouge Area Chamber (BRAC) award of “The Best Workplace” for quite a few years. For the past two years, the BRAC employee survey ratings have dwindled from 99% to 67%. AHC Human Resources department conducts an annual employee satisfaction survey to 1) ensure its employees are satisfied and 2) ensure its employees have work-life balance. Today, there are many unsatisfied and unmotivated employees and the numbers have continued to decline. The survey results proved a high number of dissatisfaction ratings were from those employees who worked remote (from home). According to Great Places to Work (2018), employees who say they have a great place to work were four times more likely to say they're willing to give extra to get the job done. Always left out, teleworkers have become accustomed to just working and receiving no rewards, bonuses, or recognition. Because of company-wide emails and the organization’s home web page, the teleworkers are privy to all the goings-on at the corporate offices and the local offices in their home state; but cannot take part in the activities. Activities consists of wellness programs, health clubs, raffles, employee of the month and its benefits, holiday parties, holiday luncheons, annual employee picnic, games, merit rewards, lunch & learns, non-profit donation activities, development courses, etc. Employee dissatisfaction has made a significant impact on the organization meeting its strategic goals; thus impacting the organization as a whole. RUNNING HEAD: The Define Phase 3 Authorization This Project Charter formally authorizes AHC Human Resource department to develop and implement a new program, Teleworker Employee Engagement Committee, for use in improving AHC’s teleworker employee satisfaction ratings. This Project Charter will include: the project scope, goals, deliverables, project milestones, assumptions, constraints, & dependencies, list of project team, acronyms, and project authorization/approval. All resources will be assigned by the Project Manager, Kimberly Hall and approved by the Project Sponsor, Jan Rivers, Vice President of Human Resources. Project Scope The purpose of this project is to improve teleworkers satisfaction and overall work-life balance by organizing a Teleworker Employee Engagement Committee (TEEC) to satisfactorily engage and motivate the teleworkers of AHC. Project Goals, Objectives, & Outcomes By incorporating the TEEC, the organization can expect to see an employee satisfaction rating increase of 5% to 8% by the end of June 2019 and upwards to 15% by the end of December 2019. The TEEC will work along with the organization’s current Employee Engagement Committee (EEC) but will engage solely with the teleworkers. The project deliverables shall include a new committee solely for teleworkers, a rewards/merit system, developmental course offerings, gift cards for wellness (when provided to in-office employees), and gift cards for meals (when provided to in-office employees), and a company web-based platform for the TEEC to engage solely with teleworkers which will include virtual capabilities for face-to-face engagement. The TEEC will plan major activities in conjunction with the current EEC but will have ad-hoc activities conducive for remote workers. AHC will conduct a follow- RUNNING HEAD: The Define Phase 4 up study and test for increase in satisfaction in June 2019 but will use a 3rd party to conduct the survey. Deliverables/High-Level Requirements Form a committee to include a director of Human Resources, a manager of Human Resources, and 12 teleworkers as committee members. After formation, schedule bi-weekly committee meetings through June 2019. After June, schedule monthly meetings for the remainder of the year. Design a company web-based platform designed for teleworker-only access and to include virtual capabilities for face-to-face engagement. The new system must include the following; • Ability to create a 2 access portals on the home page: 1 for the committee members and 1 for all teleworkers • Ability to create and push informational emails to all teleworkers • Allow user access for teleworkers only • Access to a teleworker directory • Ability to have virtual meetings • Ability to list developmental course offerings • Ability to highlight a teleworker of the month on home page • Ability to provide resources for Teleworkers Project Milestones Project will begin on February 1, 2019 with a time to completion of June 30, 2019 (5 months). The project plan will be submitted and approved in accordance with the milestone schedule below. Upon approval of the project plan resources will be assigned to the project and work will commence within 5 business days. The Project RUNNING HEAD: The Define Phase 5 Sponsor must approve any schedule changes which may impact milestones. A detailed schedule will be included in the project plan. The high level milestone schedule is: • February 1, 2019 – Project Plan Complete and Approved • February 6, 2019 – TEEC Committee formation begins • February 6, 2019 – Assign resources to design the web-based portal • February 9, 2019 – Project Manager to meet with Project Team to define the web-based portal and discuss project deliverables • February 10, 2019 – Programmers begin project design and IT Specialist determine technical limitations of AHC’s policies and procedures. • February 15, 2019 – TEEC 1st meeting (meeting to be led by leaders of the Corporate EEC) and TEEC member role assignments • February 17, 2019 – Project Team meeting to discuss outcome of 1st committee meeting and provide updates and changes. • March 1, 2019 – 2nd TEEC meeting (meeting to include leaders of the Corporate EEC for guidance) • March 2, 2019 – Outlook meeting invite email sent to all teleworkers for mandatory meeting on 3/25/19 • March 15, 2019 – 3rd TEEC meeting • March 17, 2019 – Web-based portal beta design complete • March 18, 2019 – Beta Testing (TEEC, Project Manager, and stakeholders test the portal – user access and issues identified) • March 19, 2019 – Web-Based Portal Update RUNNING HEAD: The Define Phase • March 25, 2019 – Mandatory All Teleworker Meeting (Introduce committee, portal training, and idea behind the project) • March 25, 2019 – Web-Based Portal Implementation complete • March 30, 2019 – 4th TEEC meeting (discuss telework engagement/activities ideas for April) • April 1, 2019 – Portal Go-Live • April 5, 2019 – Programmers & IT Specialist maintain and update portal • April 5, 2019 – Select 3rd Party Survey company to conduct engagement survey • April 10, 2019 – 1st Teleworker Engagement/Activity • April 15, 2019 – 5th TEEC meeting (review of 1st activity, discuss gathering information for teleworker of the month for May, and the reward) • April 16, 2019 – Meet with 3rd Party Survey Company on the survey questions and design • April 30, 2019 – 6th TEEC meeting (vote on teleworker of the month) • May 10, 2019 – Teleworker of the Month Award • May 15, 2019 – 7th TEEC meeting • May 20, 2019 – 2nd Teleworker Engagement/Activity • May 25, 2019 – Meeting with 3rd Party Survey company to finalize the survey and method of delivery • May 30, 2019 – 8th TEEC meeting • June 1, 2019 – Survey Email sent to all teleworkers • June 1, 2019 – June 15, 2019 – Survey Collection • June 15th – 9th TEEC Meeting 6 RUNNING HEAD: The Define Phase • June 25, 2019 – Survey Results • June 30, 2019 – Project Complete 7 Assumptions Teleworker satisfaction and participation utilizing the web-based portal. Increase in overall employee satisfaction. Corporate’s programmer and IT managers on board with allowing a member of their team to work on the project. Programmer assigned equipped with creativity needed for the ideal web-based tool. 3rd Party Survey Company will be within budget and accept bid. After project completion, assigning the responsibility on maintaining the web-based portal to the Windows Desktop Team. Corporate EEC willingness to work in conjunction with the TEEC. Corporate EEC & Human Resources already identified and understand the needs of the teleworkers. Portal Training completed by March 25, 2010 for Go-Live on April 1, 2019. Constraints The availability of programmers and IT specialist to work on project team but also to continuously update and maintain the tool through project completion. Encouraging teleworkers to sign up to be a committee member and obtaining manager’s approval. Teleworker committee member’s availability for bi-weekly meetings. AHC policy & procedure technical limitations. Dependencies TEEC activities, rewards, content, & engagement ideas are “remote employee” driven. United States Postal Service to routinely deliver items to teleworkers. Programmer & IT Managers. Project outcomes or employee satisfaction increases are dependent on the TEEC. RUNNING HEAD: The Define Phase 8 Project Team Function Name Role Project Sponsor Jan Rivers, Corporate Sr. Vice President of Human Resources Kimberly Hall, HR Business Partner Jamie Schlottman, CEO Corporate VPs & Senior Directors Brandi Vilo, HR Business Partner Approve project and resources, strategy, and outcomes Project Manager Stakeholder Stakeholder Project Coordinator Project Team Leader Team Member Team Member Team Member Team Member Team Member Team Member Team Member Team Member Shelton Evans, EEC Leader Corporate EEC/Subject Matter Expert Programmer IT Specialist TEEC Leader TEEC Member Data Analyst Teleworker Teleworker Manage project, resources, and budget Project Executive Project Executive Ensure project timeline and deliverables tracking. Be a resource for Project Team Helps to guide the TEEC RUNNING HEAD: The Define Phase 9 References Great Place to Work. (2018). Fortune 100 best companies to work for 2018. Retrieved from: https://www.greatplacetowork.com/best-workplaces/100-best/2018
Week 6 – Measure Phase Week 6 Assignment Prompt – Process Capability: Using you Project Charter from last week for your selected project, do the following for The Measure Phase of the DMAIC: • Process Map it • Develop a data collection plan • Then collect (or create) data to measure the process capability of Y and determine its sigma level. For additional details, please refer to the Short Paper/Case Study Rubric document. Also, please read my Project Charter – which is needed to do this assignment. ______________________________________________________________________________ I. Instructor Notes for Week 6: The Project Charter you created last week in the "Define Phase” is your base plan that you will use for this week’s assignment - the “Measure Phase”….so that you know what you’re trying to achieve and why…..and for the remainder of the course. Now that we have "Defined" what we are trying to fix or correct we need to "Measure" where we are now so that when we do make any changes we'll have a good idea if it worked or not, but before we can even measure where we are we'll need to know if the process is stable and one of the tools we can use is the Process Capability study (Cpk or Ppk). When it comes to the Project Charter, we need to know where we are now, for example: our reject rate is 30% or our market share is 45%. The point is we need to know where we are now and then how much we expect to increase or decrease (depending on the project). II. Week 5 Module Overview: The “Measure” phase of a Six Sigma project involves measuring the current performance of the process considered for improvement. The following example illustrates calculation of the primary metrics of process performance: Example: A process produced 30,000 products. Two types (Type A and Type B) of defects are possible for each product. In the 30,000 products produced, there were 100 Type A defects and 200 Type B defects. Defects per Unit (DPU) = Number of defects / Number of products = (100 + 200) / 30,000 = 300 / 30,000 = 0.01 Defects per Million Opportunities (DPMO) = (Number of defects * 1,000,000) / (Total number of opportunities for defects) NOTE: Number of defects from above is 300 and the Total number of opportunities for defects is the number of products (30,000) times the number of defects (2). = (300 * 1,000,000) / (30,000 * 2) = 300,000,000 / 60,000 = 5,000 Throughput Yield Throughput Yield (TPY) is the number of acceptable pieces at the end of the end of a process divided by the number of starting pieces excluding scrap and rework (meaning they are a part of the calculation). Throughput yield is an important concept in Six Sigma that measures the efficiency of a process. It is a universal and standard metric that can be used for processes of any nature. Thus it enables different processes to be compared on a level ground. Throughput yield is based on the defects. It uses DPU (Defects per unit) for its calculation. =e-DPU =e -0.01 (where e is a mathematical constant with the value of 2.718) = 0.9901 = 99.01% Parts per Million (PPM) = DPU * 1,000,000 = 0.01 * 1,000,000 = 10,000 Along with the above metrics, process capability and process performance indices may also be calculated in the “Measure” phase. Read the article on the indices. The “Measure” phase requires that one is knowledgeable in basic statistics and probability concepts. Read the lesson on the types of data. Also, review the tutorial on probability concepts and the tutorial on the commonly used discrete and continuous distributions. Before the process performance is measured, it is important to check whether the measurement system (measuring tools, inspection manuals, etc.) is efficient and reliable. Verification of the measurement system is called Gage Repeatability and Reproducibility (R & R) Study. Read the article that explains this. References Engineering Statistics Handbook. (2011). Gauge R & R studies. Retrieved from http://itl.nist.gov/div898/handbook/mpc/section4/mpc4.htm iSixSigma. (2011). Process capability (Cp and Cpk) and process performance (Pp and Ppk) – What is the difference? Retrieved from http://www.isixsigma.com/index.php?option=com_k2&view=item&id=1275:process-capability-cp- cpkand-process-performance-pp-ppk-what-is-the-difference?&Itemid=155 Simon, K. (2011). SIPOC diagram. Retrieved from http://www.isixsigma.com/index.php?option=com_k2&view=item&id=1013:sipoc- diagram&Itemid=155 Stat Trek. (2011). AP statistics tutorial: Probability. Retrieved from http://stattrek.com/AP-Statistics3/Probability.aspx?Tutorial=AP Stat Trek. (2011). Statistics tutorial: Discrete and continuous probability distributions. Retrieved from http://stattrek.com/lesson2/discretecontinuous.aspx Usable Stats. (2011). Fundamentals of statistics 1: Basic concepts: Nominal, ordinal, interval and ratio. Retrieved from http://www.usablestats.com/lessons/noir III. THE MEASURE PHASE – Week 6 Notes: Learning Objectives Upon completion of the course, students will be able to: • • • • Calculate process performance metrics Review basic statistics Verify whether the measurement system is efficient and reliable Discuss the tools and concepts used in the “Measure” phase Reading and Resources Textbook The Certified Six Sigma Black Belt Handbook, Chapters 14, 15, 16, 17, 18, and 19. Website: Engineering Statistics Handbook This website outlines the steps that can be taken to characterize the performance of gauges and instruments. • Engineering Statistics Handbook. (n.d.). 2.4 Gauge R & R Studies. Retrieved from: https://itl.nist.gov/div898/handbook/mpc/section4/mpc4.htm Website: Process Capability (Cp and Cpk) and Process Performance (Pp and Ppk) – What is the difference? This website discusses the process capability and process performance indices. Website: Fundamentals of Statistics 1: Basic Concepts: Nominal, Ordinal, Interval and Ratio This website discusses the types of data. • Sauro, J. (n.d.). Fundamentals of Statistics 1: Basic Concepts: Nominal, Ordinal, Interval and Ratio. UsableStats. Retrieved from: http://www.usablestats.com/lessons/noir Website: AP Statistics Tutorial: Probability This website reviews probability concepts. • StatCheck. (n.d.). What is probability? Retrieved from: https://stattrek.com/probability/what-is-probability.aspx?tutorial=ap Website: Statistics Tutorial: Discrete and Continuous Probability Distributions This website reviews probability distributions. • StatTrek. (n.d.). Probability Distributions: Discreet and Continuous. Retrieved from: https://stattrek.com/probability-distributions/discrete-continuous.aspx Website: Measure This website discusses the Measure phase. • IV. Six Sigma Material. (n.d.). Welcome to the 2nd phase of a DMAIC project. Retrieved from: http://www.six-sigma-material.com/Measure.html MY NOTES FOR THIS ASSIGNMENT: Six Sigma Daily Glossary https://www.sixsigmadaily.com/six-sigma-terms/#tabpanel4 Throughput Yield Provides an overview of how Throughput Yield (TPY) and Rolled Throughput Yield (RTY) are calculated and how these calculations to measure the efficiency of a process. And calculating a Parallel Process and a Serial Process using the DPU & TPY to get the RTY https://www.whatissixsigma.net/throughput-yield/ Basic Six Sigma Metrics For lean six sigma practitioners, these are necessary statistics to know to evaluate how various processes perform. At the root of lean six sigma is the effort to reduce process failures by eliminating, or at least reducing the factors that cause them. Each parameter of a manufactured unit has opportunities for failure. The identification and measurement of these failures by basic six sigma metrics is essential. http://www.sixsigmatrainingfree.com/basic-lean-six-sigma-metrics.html VERY USEFUL MANUAL ON THE FULL DMAIC PROCESS, INCLUDING THE MEASURE PHASE. ALL INFORMATION BELOW, FROM THIS POINT ON DOWN, IS FROM THE FIREBRAND TRAINING MANUAL. LINK: Fire Brand Training Manual http://www.firebrandtraining.co.uk/pdf/learn/six-sigma/sixgreen-courseware.pdf Value Stream Map: A “current state” value stream map is prepared to help build a picture of how the existing process delivers value to the end customer. Consistent use of icons are needed to create a clear picture of the value stream. To create a current state value stream map: • Define a unit of product • The team should follow a “product” through the entire value stream (physically if possible) • Post-it notes and pencil should be used to sketch out the first drafts allowing you to refine as you learn more • Use the standard icons as shown on the previous slide • Collect “real” data, don’t rely only on process documentation or existing reporting Block Diagram & Detailed Process Map A block diagram is the simplest type of map. It provides a quick and uncomplicated view of the high level process. Only rectangles connected by lines are used in this type of map. The rectangles represent major activities and the arrows indicate direction of flow. Block diagrams can be used to simplify large and complex processes. Block Diagrams are typically used for presentations or management overviews. They do not provide the detail needed for diagnostics or problem solving. Steps to develop a Detailed Process Map: 1. Determine the format for the Detailed Process Map eg vertical or horizontal 2. Identify the flow of steps and decisions within each sub-process. 3. List the outputs for each step. 4. List the inputs for each step. 5. Classify the input variables as Noise (N), Controllable (C) or Standard Operating Procedure (SOP). 6. List the current specifications and targets for the process inputs and outputs. 7. Evaluate the Detailed Process Map to ensure that all criteria have been met. Your detailed process map will be complete when you can answer the following two questions adequately: • Who is responsible for doing the work to complete each process step and what activities do they perform to complete that work? • How does the product or service go from initial input to final output? Identifying Root Causes What is y = f(x)? The “Y” in this simple formula relates to the output of a process: • • • • At a point in time Over a period of time At a point in the process Overall for a set of process steps Examples include: • • • Total time required to complete all process steps (lead time) Percentage of deliveries achieved according to customer demand Percentage of pizzas delivered within 15 minutes of order The “x” is the input upstream process indicator • • • In-process measures Upstream from the customer of the process Taken at key points in a process to assess performance and intervene before customers are impacted Knowing how these inputs (X) drive the process output (Y), allows us to predict and control process performance. For this reason, the process output (Y) is sometimes referred to as the dependent variable while the input (X) is referred to as the independent variable Identifying the vital few inputs: Our process mapping will have identified a number of input variables but not all of these will have an impact on the process output We use one of the following narrowing tools to answer the question, “Which are the potential vital few inputs (x’s)?” • Cause-Effect Diagram (Fishbone Diagram) • Cause-Effect Matrix (C&E Matrix) • Failure Mode Effects Analysis (FMEA) The potential vital few inputs (x’s): • Are the short list of x’s that the team identified is believed to have a critical influence or effect on the Y • Will be statistically confirmed in the Analyze phase The Cause & Effect Diagram (C&E) Is a visual brainstorming tool to identify potential causes for your problem. Also known as a fishbone or Ishikawa diagram o identify t Steps to identify the potential vital few inputs (x’s) with a C&E diagram vital few inputs (x’s) with a C&E diagram: 1. Record the Y for the project in the head of the diagram, stated as a problem or effect. 2. Determine the categories for the causes on the spines of the diagram (e.g., consider People, Materials, Measurement Systems, Equipment/Machines, Process/Procedures, Environment) 3. List the causes and attach them to the appropriate spines. 4. Identify the potential vital few causes by using a Priority Matrix. 5. Align the potential vital few causes with the inputs from the Process Map. C&E Matrix Steps to identify the potential vital few inputs (x’s) with a C&E matrix: 1. List the project metrics. 2. Prioritize each metric. 3. List the inputs (x’s) in the rows of the matrix. 4. Assign a correlation rating for each x and metric pairing. 5. Cross-multiply the priority and correlation ratings to obtain the score for each x. 6. Identify the potential vital few inputs based on the score Failure Mode Effects Analysis (FMEA) An FMEA is a systematic way to evaluate and prioritize the potential failures of a process to prevent them from occurring. Steps to identify potential vital few inputs (x’s) with FMEA 1. 2. • 3. 4. 5. • 6. • 7. • 8. • 9. • 10. • List the process steps in the Process Function column of the FMEA template. Enter the potential failures for each process step in the Potential Failure Modes column. How can this process step fail? Enter the effects on the customer of a failure in the Potential Failure Effects column. Enter the possible causes for the failure in the Potential Causes of Failure column. Enter the methods and systems used to currently detect the failure in the Current Process Controls column. What do we have in place to either detect or prevent the cause or failure mode so that the effect does not occur? Assign a rating to each effect by using a scale from 1–5 in the Severity (SEV) column. The higher the severity rating, the greater negative impact to the customer. Assign a rating to each potential x by using a scale from 1–5 in the Frequency of Occurrence (OCC) Column. The higher the occurrence rating, the more frequently the cause occurs and will result in a failure mode. Assign a rating to each potential x by using a scale from 1–5 in the Likelihood of Detection (DET) Column. The higher the detection rating, the more likely the customer will experience the effect. Calculate the Risk Priority Number (RPN) for each potential x. RPN = SEV x OCC x DET Identify the vital few inputs (x’s) for validation in the Analyze phase. Prioritize by: o High RPN Value o High Severity Ratings o High-occurrence and low-detection ratings Guidelines on when to use the narrowing tools: Basic Statistics Data Types: • Continuous (Measureable) o It is measurable data. o It is data that can theoretically be subdivided and measured in smaller and smaller units. o Based on required precision, we decide the number of decimal places. o Small amount of data is required to draw valid conclusions o Examples: ▪ The length of a cable ▪ Thickness of a wire ▪ Downtime of a LAN server ▪ The average repair time of a machine • Discreet (Countable) o It is countable, indivisible data o Whole numbers only—no decimal places o Usually related to defects or proportions – after the error has had an effect o Illustrates the trends only over a longer time period o Large samples sizes are required in order to draw valid conclusions o Examples: ▪ The number of times a schedule date is missed ▪ The number of people absent ▪ The number of customers in various market units ▪ Percent of products defective It is most desirable to be able to measure your Y on a continuous variable scale. Other types of data can certainly be analyzed. As you move from the ideal, more samples will be required to show and detect improvement. The data at your disposal can be in many forms: • Binary – classified into one of two categories • Unordered categories - no rankings • Ordered categories – rankings/ratings • Count – counted discretely • Continuous – on a continuous scale Descriptive Statistics Shape of the data (Bell-Shaped or skewed) Centre of the data (mean, median or mode) Spread of the data (range, standard deviation or variance)
Lean Six Sigma Green Belt Courseware Version 2.6 Copyright © Property of Firebrand Training Ltd www.firebrandtraining.com 08/10/2014 ORIENTATION Lean Six Sigma Green Belt Welcome Welcome to the Lean Six Sigma Green Belt Training Orientation v2.6 2 1 08/10/2014 Introductions Be prepared to share with the class your: - Name - Designation - Organisation - Location - Expectations for the course - Summary of your project Orientation v2.6 3 Programme Schedule Day 1 - Define Define the scope of the problem to be tackled – in terms of the customer and/or business requirements and the process that delivers these Day 2 - Measure Map the “as-is” process and measure the current performance Day 3 - Analyse Analyse the gap between the current and desired performance, prioritise problems and identify root causes Day 4 - Improve Generate the improvement solutions to fix the problems, implement them and prevent them from re-occurring, so that the required financial and other performance goals are met Day 5 - Control Ensure that the improvement continues Orientation v2.6 4 2 08/10/2014 FIREBRAND LEAN SIX SIGMA GREEN BELT Certification Exam When Day 5, 2.30pm Duration 1 hour (60 minutes) Number of Questions & Format 30 questions, open book Assessment Questions test candidates on LEAN & DMAIC principles, process & precepts Passing Score 75% Orientation v2.6 5 ORIENTATION LEAN 3 08/10/2014 Objectives of this module At the end of this module, you will be able to Understand the history and principals of Lean and Six Sigma Explain the differences between Lean and Six Sigma Explain how Lean Six Sigma is deployed within a business Understand the role of a Green Belt project manager Orientation v2.6 7 Lean Thinking Lean emerged from post-WWII Japanese automobile industry as a fundamentally more efficient system than mass production Orientation v2.6 8 4 08/10/2014 History of Lean Ford Rouge Plant Indianapolis 300 Supermarkets Toyota Production System Orientation v2.6 9 Lean Thinking, continued CRAFT MASS PRODUCTION LEAN THINKING Focus Task Product Customer Operation Single items Batch & queue Synchronized flow & pull Overall Aim Mastery of craft Reduce cost & increase efficiency. Eliminate waster & add value Quality Integration (part of craft) Inspection (a 2nd stage after production) Inclusion (built in by design & methods) Business Strategy Customization Economics of scale & automation Flexibility & adaptability Improvement Expert-driven periodic improvement Worker driven continuous improvement Master-driven continuous improvement Orientation v2.6 10 5 08/10/2014 Lean Thinking, continued Lean thinking is the dynamic, knowledgedriven & customer-focused process through which all people in a defined enterprise continuously eliminate waste & create value Orientation v2.6 11 8 Forms of Waste T I M W O O D S Orientation v2.6 12 6 08/10/2014 8 Forms of Waste - Continued WASTE Description Transport Moving people, materials and information around the organisation Inventory Any supply in excess of one piece flow Motion Any movement of people that does not add any value to the product or service Waiting For people, machines, materials, information, etc Over-production Doing things earlier / faster than the next process needs Over-processing Effort that adds no value to the service from the customer’s viewpoint Defects Having to re-do work that wasn’t done right the first time Skills Not utilising people’s experience, skills, knowledge, creativity Orientation v2.6 13 LEAN Customer Value Map the Value Stream Maximise Customer Value While Minimising Waste Seek Perfection Pull Flow Orientation v2.6 14 7 08/10/2014 Reducing Waste & Ancillary Activities In order to increase the percentage of value adding activities, the focus is to minimise the time and effort spent on the waste and ancillary activities. Understand value from the point of view of the customer. It is essential not to spend time on activities which do not add value for the customer. Waste Objective Maximise the proportion of time spent on value adding activities by removing wasteful and ancillary activities Ancillary Activities Value adding Activities Original Process Improved Process In a traditional organisation, the value adding ratio= <10% Orientation v2.6 16 Lean in a nutshell Time spent Jaguar Racing in the 1950’s & 1960’s Jaguar focussed on removal of the waste (braking) Increased the value (acceleration) proportion automatically Orientation v2.6 17 8 08/10/2014 ORIENTATION SIX SIGMA What is Six Sigma? Six Sigma is a 5-phase problem solving methodology that Understands a business problem Translates it into a statistical problem Solves the statistical problem Translates it back into a business solution Six Sigma is a data driven philosophy & process resulting in dramatic improvement in product/service quality & customer satisfaction Using Six Sigma reduces the amount of defective products manufactured or services provided, resulting in increased revenue and greater customer satisfaction. Orientation v2.6 19 9 08/10/2014 Definition of Six Sigma What is Six Sigma? Sigma is the symbol for Standard Deviation Standard Deviation is a measure of the data variation Standard Deviation is calculated from the data from the process – it’s the Voice of the Process s s Orientation v2.6 20 What is Six Sigma? … and what is a standard deviation? Standard Deviation 7612 7210 Variation 68 8 64 6 Mean 60 4 56 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Variation exists in all processes. The principal aim of Six Sigma is to reduce variation to operate consistently within customer expectations Orientation v2.6 21 10 08/10/2014 Definition of Sigma Level Sigma Level is a measure of process capability Sigma Level requires customer specifications to calculate the capability of the process. These are derived from the Voice of the Customer (VOC) Sigma Level states how many Standard Deviations lie between the average and the nearest customer specification limit VOICE OF THE CUSTOMER VOICE OF THE PROCESS LSL USL s s s s Orientation v2.6 22 Target Performance Runway (Manchester Airport) 05 R Touchdown target v How well can the pilot achieve the target performance? We want to be able to measure the performance and use it to compare the quality of pilots. If we were to select a pilot for a new route to SABA – how do we compare their performance? Orientation v2.6 23 11 08/10/2014 Why Use Six Sigma? Variation Errors & Defects Poor Quality Dissatisfied Customers Business Loss Orientation v2.6 24 Is 99% Good Enough? 3.8-Sigma Level 99% Good 6-Sigma Level 99.99966% Good • 20,000 lost articles of mail per hour • Seven articles lost per hour • Unsafe drinking water for almost 15 minutes each day • Unsafe drinking water one minute every seven months • 5,000 incorrect surgical operations per week • 1.7 incorrect operations per week • 11.8 Million shares incorrectly traded on the NYSE every day • 4,021 shares incorrectly traded on the NYSE every day • 10,700 defects per million opportunities • 3.4 defects per million opportunities Orientation v2.6 25 12 08/10/2014 Y = f(x) Y = f (x1;x2;x3;xn) Outcome = function of the factors of the process So what are the Factors for a Great cup of coffee? Cup of coffee = f (coffee beans; water) x1 – coffee beans x2 – Volume of water x3 – Volume of coffee x4 – hardness of water x5 – pH levels of water xn – etc. Orientation v2.6 26 Six Sigma Overview Summary 1. The objective of Six Sigma is to reduce process variation such that a process continues to meet customer expectations over time 2. To reduce variation it identifies then reduces the statistically validated root causes of variation 3. Six Sigma performance means a near defect free process (<3.4 defects per Million opportunities) 4. A Sigma level is a measure of capability for the process to meet the Customer Specifications 5. Freeing a process from producing defects means that capacity increases or throughput time decreases (faster) Orientation v2.6 27 13 08/10/2014 ORIENTATION LEAN SIX SIGMA Six Sigma v Lean in a nutshell Imagine a leaking pipe and consider how LEAN and Six Sigma work together to tackle the problem…… Six Sigma tackles defects/rework, one of the wastes Lean attacks Orientation v2.6 29 14 08/10/2014 Lean Six Sigma Simulation The coin simulation Objective: To illustrate how to apply Lean Six Sigma principals Your instructor will read the instructions of the simulation Orientation v2.6 30 15 ENTERPRISE Deploying Lean Six Sigma in the business Deploying Lean Six Sigma in the business There are four key components critical for a successful Lean Six Sigma deployment Leadership Engagement Customer focus Right people Right Projects Let’s take a closer look at each of these in turn starting with Customer Focus Enterprise v2.6 2 1 Customer focus Lean Six Sigma is customer centric. It strives to delight customers by delivery of product/service to customer specification time after time Understanding requirements through techniques such as Voice of the Customer (VoC) is critical to measure success in this regard Requirements are translated to measurable characteristics called Critical to Quality (CTQ) which measure adherence to these requirements Delighting customers drives business profitability Enterprise v2.6 3 Customer focus The satisfaction of customer needs (internal and external) drives quality, efficiency and ultimately profitability Cross-functional teams working together focussed on a clear definition of customer requirements will deliver increased customer value and reduced waste Enterprise v2.6 4 2 Leadership Engagement Why should leaders lend their support to your LSS deployment? Enabler of strategy Improve customer experience Develop the problem solving capability of the business Tackle their most challenging problems Return on investment Enterprise v2.6 5 Leadership Engagement What should Lean Six Sigma leaders do? Use process improvement tools and methods in daily work Create a team from different parts or the organisation and/or external organisations Be responsive to support teams through tough patches Get involved by participating in some events Develop the capability of the teams Hold the team and themselves accountable for the success of improvement opportunities Communicate widely on the progress and success of the deployment Enterprise v2.6 6 3 Right Projects For a new lean six sigma deployment to gain momentum, project selection is critical Too many projects being worked (resources spread too thin), results in longer than needed cycle times Too many marginal-value projects being worked = Low ROI Enterprise v2.6 8 Right Projects Consistently use prioritisation and selection criteria Related to driving Economic Profit and Revenue Growth Actively manage projects-in-process Stop working marginal value projects Launch projects based on skill not resource availability Enterprise v2.6 9 4 Right Projects 1 Identify Value Levers 2 Identify Project Opportunities 3 Screen Initial List of Opportunities  Identify value levers in  Translate Value Levers  Score each project as the business into Opportunity Areas High / Med / Low for Benefit and Effort • Strategic  Translate Opportunity Areas into Project Ideas • Financial • Client • Operational (Process)  Fill in Benefit / Effort Matrix 4 Scope and Define Projects Prioritise List of Defined Projects  Assign opportunities to project sponsors for project definition  Evaluate projects using Evaluation Criteria  Complete Draft Project Charters  Update Benefit / Effort Matrix  Select highest priority opportunities for further analysis  Prioritise value levers 5  Review plotted results  Prioritise projects  Schedule project launches based on resource availability Enterprise v2.6 10 Right Projects – Identify Value Levers Strategy VOC Voice of the Client Financial  Client Needs provides focus on VOB  Financial analysis drives to critical client requirements and drives to process performance. tactical business processes Process  Considers key enablers Process performance links to strategy, client, and financial levers. Revenue Growth that span the processes, such as Voice of our People Economic Profit Market Value Insight: Tools such as Scorecards and Dashboards are used to translate Strategy into Key Process Metrics in order to sustain improvement results Enterprise v2.6 11 5 Right Projects – Identify Project Opportunities Strategic Focus Area/Value Driver ROIC Opportunity Areas Project Ideas Simplify pricing options for ABC Improve selling process Streamline quotation process Reduce delivery time for… Proj #1 Improve delivery of services Decrease delivery time variability Proj #2 Reduce Invoicing errors Maintain Relentless Client Focus Proj #3 Minimise Rework on Briefs Improve quality products Proj #4 Improve Initial Gathering of Requirements Improve brochures Improve client support Improve client response time Objectives that may be addressed with a Lean Six Sigma project Enterprise v2.6 Too broad to address directly with a Lean Six Sigma project 12 Right Projects – Screen Initial List of Opportunities Highly Desirable Opportunities Projects in upper left are the most desirable projects. High Benefit 16 7 1 8 Potentially Desirable Opportunities Projects in the upper right are potentially desirable, but usually require more analysis to ensure good decision making. “Tie breaking” variables such as strategic fit, resource availability and project type may also be employed. 12 3 Med 4 17 13 9 10 “Potential Quick Hits” While typically low in benefit, these can be executed with little effort . Low 6 11 14 5 Low 15 Med 2 High Effort Least Desirable Opportunities Projects in the lower right are the least desirable. Enterprise v2.6 13 6 Right Projects - Scope and Define Projects High priority project ideas are assigned to Process Owners for project definition Charters must be completed in enough detail to enable final prioritisation We’ll cover more on charters within the Define module Enterprise v2.6 14 Right Projects - Scope and Define Projects Problem Statement Problem Statement Purpose Focuses the team on a process deficiency Communicates the significance to others The problem statement does not include any guesswork as to the cause of the deficiency or what actions will be taken A POOR Problem Statement Process rework is too high due to process A and will be reduced by analysing first and second level pareto charts. A GOOD Problem Statement In 1999, sub process A had 480 sales returned, 58% of total returns, resulting in a profit impact of $2.9MM, and customer dissatisfaction. Enterprise v2.6 15 7 Right Projects - Scope and Define Projects Project objective Example 1 Example 2 A Poor Objective A Good Objective Reduce returns by implementing individual performance measures and objectives Reduce sub process A returns from 450 to 225 by year-end, resulting in a benefit of $1.5MM. The Project objective does not state the cause of the deficiency or what actions will be taken. As it is progressed, the Project team will determine what areas need to be improved. Enterprise v2.6 16 Right Projects - Scope and Define Projects Primary Metric The primary metric is the yardstick that will be used to measure the success of your Project It must be consistent with the Problem Statement and Project Objective. It is plotted on a time series graph, with the following content: Actual Performance Baseline Performance (average over time or number of projects) Target Performance It should reflect 6-12 months of historical data and be updated during the project Enterprise v2.6 17 8 Right Projects - Scope and Define Projects Secondary Metric The Secondary Metric is the conscience that will “keep you honest” Otherwise, you could improve or optimise one portion of the process at the expense of another The Secondary Metric has no target As with the primary metric, the data should reflect 6-12 months of historical data, and be updated during the project Enterprise v2.6 18 Right Projects - Scope and Define Projects Contact Centre case study The call centre’s leadership team identified a major gap to achieve world class service level performance: World Class Performance – 90% of calls answered within 30 seconds The Industry Average – 70% of calls answered within 30 seconds ABC’s Performance – 45.5% of calls answered within 30 seconds Percent Calls Ans Per Day % of Credit Card Call Centre Calls Answered Within 30 Seconds, Last Year 0.5 0.49 0.48 0.47 0.46 0.45 0.44 0.43 0.42 0.41 0 100 200 Rows 300 Enterprise v2.6 19 9 Right Projects - Scope and Define Projects Contact Centre case study (continued) Mr A Champion has asked you to support development of the project charter by drafting A problem statement A project objective Potential secondary metric(s) Any further questions and/or research you may need to complete the charter Use the flipcharts to draft and present your work to the class Enterprise v2.6 20 Right Projects – Prioritize List of Defined Projects The project charter will drive the most appropriate project “vehicle” Quick win Local project Large project Major change Type Well defined issue with known solution Simple project with no obvious solution Complex problem with no obvious solution Large scale project/programme with high impact and complexity Timescale 1 week – 1 month 1 – 6 months 6 – 12 months 12 – 24 months Sponsorship Local Local Head of function Business unit executive Improvement enablers Stakeholders Green Belts Black Belts Potentially with Green Belt support Master Black Belts Potentially with Black Belt support Ensuring that the correct projects are selected is critically important Enterprise v2.6 21 10 Right Projects – Prioritize List of Defined Projects Project selection can be thought of as part art, part science Project ideas Alternative project charters Define and scope Programme Governance Defects Regular assessment of inflight projects, opportunities, selection criteria and resourcing £ opportunity Quantitative and qualitative criteria used to select from multiple project options Safety Project charter assigned Enterprise v2.6 22 Right People -The Typical Flawed Approach Continuous Improvement The Organisation “Ping-Pong” Ball No Integration Investment in Time, Money and… …Technical Training “Beach Ball” •Key Influencers in organisation are not involved – this creates a lack of understanding and encourages resistance Enterprise v2.6 23 11 Right People -The organisational view KEY INFLUENCERS LEAN SIX SIGMA RESOURCES CEO EXECUTIVES DIRECTORS 1 Define the Strategy / Vision 2 Leadership Engagement 1 3 Project Selection & 2 3 MANAGERS Sponsorship People Selection and Skills 4 Development 5 Deployment & Control 4 EMPLOYEES 5 Enterprise v2.6 24 Right People - Being a Green Belt The objectives of a strong Lean Six Sigma Green Belt are to: Be able to describe the Lean Six Sigma methodology Deliver Lean Six Sigma projects utilising the right tools and techniques at the right time Support your business to build problem solving capability Support Black Belts and Master Black Belts in the execution of complex projects To support you in this, there are a number of key support roles required. Enterprise v2.6 25 12 Right People - Lean Six Sigma Roles & Responsibilities Executives / Sponsor  Owns vision, direction, business results Champion & Process Owner Champion & Process Owner Executives/ Sponsor  Leads Change  Decides to launch project  Provides resources / means  Helps moving LSS Project Manager roadblocks  Validates solutions to Team Members  Has been trained on Lean Six Sigma be implemented Coaching  Has time dedicated to leading projects using Lean Six Sigma methods and tools  Supports team in executing project plan  Provides support in implementing continuous improvement elements Project Manager Project Coach  From experienced Project People  Supports project managers and project teams Enterprise v2.6 26 ENTERPRISE In Summary…. 13 Key learning points The history of Lean and Six Sigma The differences and complimentary nature of Lean and Six Sigma How to establish a Lean Six Sigma deployment The key roles and responsibilities Enterprise v2.6 28 Enterprise v2.6 29 Recommended coach support points When defining value from a customer perspective Developing your project charter Developing your plan baseline process performance Sizing potential opportunities Engaging key project/programme stakeholders for the first time 14 DEFINE Lean Six Sigma Green Belt Objectives of this module At the end of this module, you will be able to: Define the business problem Identify product families Develop customer focused metrics Establish your project team Create your Define project charter Understand some of the key change adoption considerations when delivering projects 2 LSS Green Belt DEFINE v2.6 1 Lean Six Sigma Project Structure Lean Six Sigma projects are typically delivered through a 5 tollgate DMAIC process: Define Measure Analyse Improve Control The Define phase is the first of these phases and starts with defining the business problem 3 LSS Green Belt DEFINE v2.6 DEFINE Define the business problem 2 Perception of Problems A problem well defined is a problem half solved… “If I had one hour to save the world, I would spend fifty five minutes defining the problem and only five minutes finding the solution.” Einstein The Define phase of a Lean Six Sigma project is often considered the most important 5 LSS Green Belt DEFINE v2.6 Scoping the problem There can be multiple issues to be tackled to solve a problem as generic as “maintain relentless customer focus”. We need to break this down to something that we can execute a project on. 6 LSS Green Belt DEFINE v2.6 3 Scoping the problem To help us break the problem down we’re going to illustrate the use of three simple tools: Brainstorming In/Out of frame N/3 7 LSS Green Belt DEFINE v2.6 Brainstorming Ask Question For Brainstorming to be effective – a frame of reference is needed. This can often be a simple question; Eg. How can we grow existing revenues? How can we reduce staff costs? Capture initial ideas Let people have time to generate some ideas on their own. When it looks like things have slowed down, gather the ideas on a flip chart Loosely Affinitise Read out the ideas and start to make some form of grouping. You could let the team do this. Let any additional ideas be forthcoming Clarify ideas When it looks like there are no more ideas, read through the ideas and clarify – practice “appreciative enquiry” – do not give your own opinion – ask how it relates to the initial question In scope/ out of scope Finally the ideas need to be sorted into those that are to be taken forward or those that may be eliminated 8 LSS Green Belt DEFINE v2.6 4 Brainstorming (cont’d) - Affinity Diagrams 1) Gather ideas around the Subject 2) Group into relevant categories Category 1 Category 2 Category 3 9 LSS Green Belt DEFINE v2.6 In Frame / Out of Frame Use this tool to enable agreement to be reached on the scope of the change efforts Draw a large rectangle on flip chart paper to represent the “picture frame” Give each team member a packet of post-it notes and fine-tip paper Each team member writes one idea per post-it As a group discuss and stick in scope ideas “inside the frame”, out of scope “outside the frame” If people have any questions on where their post-it should go or are unsure whether it should be in scope or not, they should place it on the picture frame 10 LSS Green Belt DEFINE v2.6 5 N/3 Technique Use this tool to prioritise ideas based on voting. This tool will reduce the number of alternatives to a small, manageable number. Count the number of ideas Divide by 3 Each participant get N/3 votes Vote Review to ensure it make sense This tool should be used after generating as many alternatives as possible The “N” is the total volume of ideas. 11 LSS Green Belt DEFINE v2.6 Scoping the project Defining your project scope Objective: To illustrate the use of narrowing tools Using your own project or use the example of a mobile telephone company looking to improve customer service to try: Brainstorming Time - 45 minutes In/Out of frame N/3 Technique 12 LSS Green Belt DEFINE v2.6 6 DEFINE Product families What is a product family? A product family is a group of products or services that use the same or similar processing steps and equipment. As a value stream represents the end to end flow of the product, a value stream map cannot map more than one product flow with any clarity. 14 LSS Green Belt DEFINE v2.6 7 Creating a product family matrix Product families are identified using a product family matrix. List the process steps on the top List the products on the left Identify steps required for each product Group products that have similar processing requirements Identify families – groups that use the same process 15 LSS Green Belt DEFINE v2.6 Creating a product family matrix (cont’d) The listed process steps should be in enough detail to show differences in products listed. To be in the same family, we’re looking for approx 80% of the processing steps to match. Products should be listed in enough detail to show the differences in processes. In a manufacturing company this is fairly easy being the different products or services the organisation sells, it can be a little more challenging in a transactional environment. 16 LSS Green Belt DEFINE v2.6 8 Product family matrix example The completed matrix below for an energy supplier shows the identification of five product families. While not a perfect match for every process step, the Hot Key product family captures four “products”. 17 LSS Green Belt DEFINE v2.6 Selecting a product family In the previous example of an energy supplier, five product families were identified. In order to decide what to work on first, for each identified product family we need to asses criteria such as: Disparity with customer expectations Importance to company strategy Opportunity for improvement Ease or speed of implementation Volume of units of product 18 LSS Green Belt DEFINE v2.6 9 DEFINE Develop customer focused metrics Four step approach Step 1: Identify Customers 1 Customer Identification SIPOC 2 Sources of data 3 4 RUMBA Operating Definitions KANO CTQ Tree 20 LSS Green Belt DEFINE v2.6 10 Customer Identification Customer (noun) 1 a person who buys goods or services from a shop or business: Mr Harrison was a regular customer at the Golden Lion. 2 [ with adj. ] a person of a specified kind with whom one has to deal: he's a tough customer. A Customer is a recipient of an output from a process They can be either internal or external They can be both a supplier and a customer External customers are typically the end-user of the product or service Internal customers are the recipient of the process output – the next person in the process chain 21 LSS Green Belt DEFINE v2.6 Identifying customers External Internal Direct Customers who directly receive our product or service Secondary/ Tertiary Customers who receive our product or service through another party Indirect Regulatory and policy setting agencies that speak on behalf of the customer, (eg. FCA) 22 LSS Green Belt DEFINE v2.6 11 SIPOC Suppliers Inputs Who supplies the information / product that moves through the process? What are the inputs to the process? List out all the “pieces” that are received for the process to perform. High level process step 1 High level process step 2 Process Process Name High level process step 3 Outputs Customers What are the outputs from the process? List out all the “pieces” that are delivered as a result of the process. Who receives the outputs from the process? High level process step 4 High level process step 5 23 LSS Green Belt DEFINE v2.6 SIPOC Example 24 LSS Green Belt DEFINE v2.6 12 Table exercise: using SIPOC SIPOC Objective: How to use SIPOC to identify customers and suppliers of a process Prepare a SIPOC for one of the projects within your table team Time - 20 mins 25 LSS Green Belt DEFINE v2.6 Step 2: Gather VoC 1 Customer Identification SIPOC 2 Sources of data 3 4 RUMBA Operating Definitions KANO CTQ Tree 26 LSS Green Belt DEFINE v2.6 13 What does a customer want? Reliability Communication Responsiveness Credibility Competence Security Access Understanding Courtesy Tangibles Performance Reputation Timeliness Features …………… 27 LSS Green Belt DEFINE v2.6 Voice of the Customer “If you don’t take care of the Customer…….. someone else will” This module introduces the tools that can be used to better understand customer requirements and needs; Determine what a customer values How to better understand a customer’s requirements How to prioritise the requirements 28 LSS Green Belt DEFINE v2.6 14 Sources of VOC data Telephone Calls Customer Complaints Customer Inspection Meetings Performance relative to alternatives Internal Quality Metrics – Scrap, Errors, Rework Focus Groups Sales Reports / Feedback Interviews Internal Intelligence Questionnaires Casual conversations Personal Visits Research Sources for listening to the Voice of the Customer Surveys Formal Transactions LSS Green Belt DEFINE v2.6 Think from the Customer’s perspective 29 Closeness to Customer Quality of Customer Information Interview Focus Group Survey Customer Complaint data Effectiveness of Data Gathering 30 LSS Green Belt DEFINE v2.6 15 Step 3: Analyse VoC 1 Customer Identification 2 Sources of data SIPOC 3 4 RUMBA Operating Definitions KANO CTQ Tree 31 LSS Green Belt DEFINE v2.6 Analysing VOC data Many of the methods for gathering the VOC means that the data captured is often too abstract to be meaningful Often the information is presented as complaints or solutions – it needs to be analysed to ensure it is usable rather than just acting on it as a requirement We need to do a number of things to test out the requirement, to ensure it makes sense – and we must have a way to prioritise these requirements We need to ensure we know how the customer defines Value The defined requirements are then known as the Output Characteristics 32 LSS Green Belt DEFINE v2.6 16 Kano model Professor Noriaki Kano of Tokyo Rika University “Attractive Quality and Must-be Quality”, Journal of Japanese Society for Quality Control, Vol 14, no. 2 (1984). Kano Analysis does not prioritize customer needs  Instead it classifies needs  These classifications can then prioritize the design effort Kano Analysis classifies needs, not features 33 LSS Green Belt DEFINE v2.6 Kano Model Satisfied Attractive: unexpected criteria that if met will result in delight  Functional Dysfunctional Dissatisfied  One-dimensional: satisfaction is proportional to performance Must-be: basic criteria that if not met will result in dissatisfaction 34 LSS Green Belt DEFINE v2.6 17 RUMBA - Test the customer requirements R easonable U nderstandable Measurable B elievable A chievable You or your department can meet the requirement (it does not violate company procedures, job accountabilities, etc.). The customers verify that you understand what they are requiring from you or your work group. The specification is measurable - in some way you can objectively determine the degree or frequency of meeting the requirement. Your co-workers will be agreeable to strive for that level of achievement. You can meet the requirement. If not, you may need to renegotiate the specifications as facts and actual data may later dictate. A want that meets all five RUMBA criteria is also a valid requirement. 35 LSS Green Belt DEFINE v2.6 Step 4: Define CTQs 1 Customer Identification SIPOC 2 Sources of data 3 4 RUMBA Operating Definitions KANO CTQ Tree 36 LSS Green Belt DEFINE v2.6 18 Operational definitions Consider the following scenario: Your project goal - reduce the average time to process new customer applications Your primary metric - average # of days to complete application Three fulfillment centres report the following data to your team: Centre Average # of Days to process applications 1 3.3 2 2.4 3 2.5 What does this information tell you? What actions would you take? 37 LSS Green Belt DEFINE v2.6 The importance of operational definitions The operational definition for each location: Location Average # of Days to process applications Day Request Is Received 1 3.3 1 2 2.4 0 3 2.5 0 Given this measurement information, would you still take the action you identified previously? 38 LSS Green Belt DEFINE v2.6 19 The importance of operational definitions Intended to remove ambiguity and ensure consistent understanding of how data will be collected, measured and evaluated Specifies the exact criteria being measured Provides an exact description of how to calculate the metrics value Provides instructions as to how to collect and utilise the data 39 LSS Green Belt DEFINE v2.6 Be careful!! The primary metric for most Green Belt projects are monitored through existing data collection systems: Before collecting and analysing the data: Check for different operational definitions of the metric among locations/shifts/data collectors, and so on Check for consistent applications of the operational definition 40 LSS Green Belt DEFINE v2.6 20 CTQ Definition Critical to quality is an attribute of a part, assembly, sub-assembly, product, or process that is literally critical to quality or more precisely, has a direct and significant impact on its actual or perceived quality. A measurable output of a product or a service that is important to the Customer. Remember, this is from a Customer’s point of view. 41 LSS Green Belt DEFINE v2.6 CTQ’s Translate to the Key Issue Create the Output Characteristic Voice of the Customer Key Issue CTQ / Characteristic I am always transferred to three or more different people. Functionality: Want to talk to the right person the first time Customer gets to the correct person the first time Identify the VOC Define the Target & tolerance Determine the Output Measure Metric Target and Tolerance Let’s discuss I’m getting my bill at different times of the month. Functionality: Consistent delivery of monthly bill Customer bill received same day of month 42 LSS Green Belt DEFINE v2.6 21 Structuring CTQ’s CTQ CTQ CTQ Align to Process Y’s VOC CTQ CTQ CTQ CTQ CTQ CTQ CTQ It can be useful to structure the CTQ’s to best visualise them 43 LSS Green Belt DEFINE v2.6 CTQ Tree List Customer requirements / needs Identify common groupings Break high level req’s into more detail Look for links to Process Ys’ from SIPOC Assemble the tree Why use it? Helps the team move from the broad and often vague high-level requirements and needs into detailed requirements Helps to ensure there is a direct relationship between the CTQ’s and the Process Y’s 44 LSS Green Belt DEFINE v2.6 22 Table exercise: Creating CTQs Objective: To translate VOC to CTQ from Work in groups of 3-4 and review the following ‘Voice of the Customer’ statements (from a Sandwich shop): “It takes ages before I get my sandwich” “I really don’t like your seats” Time - 5 mins Complete VOC to CTQ template on next slide 45 LSS Green Belt DEFINE v2.6 Exercise: Translate VOC to CTQ Voice of the Customer Key Issue CTQ / Characteristic Metric Target and Tolerance It takes ages before I get my sandwich I really don’t like your seats 46 LSS Green Belt DEFINE v2.6 23 VOC & CTQ Summary Understanding customer requirements is critical for all Lean Six Sigma projects There are numerous primary, secondary and tertiary sources of VoC Customer needs can be classified using Kano analysis and prioritised VoC should be translated to CTQs CTQs should be measurable following an agreed operational definition 47 LSS Green Belt DEFINE v2.6 Voice of the Business (VOB) Derived from two primary drivers What is the profit to be delivered from the process? What are the primary performance guidelines we want to achieve? Unit costs Transaction costs Manpower levels Asset utilisation Material costs What is the customer experience to be delivered? How does the customer expect to be treated when dealing with us? How do we differentiate from our competitors? Can we make negative interactions seem positive to the customer? How do we make ourselves easy to work with? 48 LSS Green Belt DEFINE v2.6 24 Critical to the Business (CTB) Stakeholders Controllership Regulatory Work Council Unions Legal  Employee Critical to the Business CTB Safety Morale Satisfaction Shareholder Community Net Income Return On Investment EBIT Environmental Local Relations Often these interests result in constraints or boundaries that are imposed on the process 49 LSS Green Belt DEFINE v2.6 VOC vs VOB Lean Six Sigma is based on the belief that business benefit is derived from delivering customer requirements – it’s customer focused Many of the techniques for hearing and analysing VOC can and should be applied to VOB CTB’s are more often constraints than output targets: The business may not have defined targets for processes The business may not have defined the customer experience it wants to deliver 50 LSS Green Belt DEFINE v2.6 25 Customer Requirements Summary • Understanding & clarifying customer requirements is a 4-stage approach: 1. Identify Customers (SIPOC) 2. Gather their requirements (survey, interviews etc) 3. Analyse the customer information (Affinity & Kano) 4. Define the CTQ (target & tolerance) • Translating VOC into CTQ provides a method to measure whether the customer requirements are being achieved The CTQ makes the VOC measurable 51 LSS Green Belt DEFINE v2.6 DEFINE Project Charter 26 The project charter The project charter is the primary output document of the Define phase. It pulls together all the components of Define The problem statement Business case Scope Goal statement Team roles, responsibilities and time commitment High level timeline of tollgate delivery Could be thought of as a “contract” between the project team and the business 53 LSS Green Belt DEFINE v2.6 A basic project charter – Page 1 of 2 54 LSS Green Belt DEFINE v2.6 27 A basic project charter – Page 2 of 2 55 LSS Green Belt DEFINE v2.6 The problem statement The problem statement should identify what problem this project is focused on solving. The problem statement should contain: Who - Who is being impacted? (What customer) What- What is the issue that is impacting the customer Where- Where do the customers encounter the problem with the process? (e.g.. on the phone with NE call centre or on line bill pay set up screen. etc...) When- When in the process does the customer experience the problem? Impact- What is the impact to the customer when the problem occurs? (e.g.. calls are being dropped, can't complete bill pay set up etc...) Use SIPOC to identify the customer and the output that they receive 56 LSS Green Belt DEFINE v2.6 28 Business case The business case should provide a compelling case to the Line of Business as to why this problem needs to be solved. It should contain: From a business perspective, why should we do this? How does this project align with other business initiatives/strategic plan? What is the focus for the project team? What impacts will this project have on other business units and staff? What benefits will be derived from the project? How are the value of the benefits quantified? (e.g.. increased revenue, lower expense, cost per unit, cost avoidance, strategic value) Ensure you enlist the support of Finance in quantifying and validating the potential financial benefits for your project! 57 LSS Green Belt DEFINE v2.6 Example of a Business Case 58 LSS Green Belt DEFINE v2.6 29 Project scope The scope should consider: What authority do we have? What processes are we addressing? What is not within scope? What are the starting and ending points of the process? What components of the business are included? What components of the business are not included? What, if anything, is outside of the project boundaries? What constraints must the team work under? In/Out of frame, brainstorming and N/3 are important tools here! 59 LSS Green Belt DEFINE v2.6 Goal statement The goal statement addresses the key project success metrics, the primary and secondary metrics (covered in the LSS Enterprise module). What are my measures of success that are aligned to the project objective? What are the goals for primary and secondary metrics? How much does the primary metric need to change for your project to be considered a success? Other items to be included How long will it take you to complete this project? (A summary project timeline should be completed as shown on page 2 of the Charter) The goal of the tangible and intangible benefits of the business case? 60 LSS Green Belt DEFINE v2.6 30 DEFINE Team The Lean Six Sigma project team Revision: In the Enterprise module we covered the following core roles within the Lean Six Sigma project team Other important roles include Project Finance Certifier LSS Green Belt DEFINE v2.6 and Operational Risk 62 31 Individual vs Systemic Efficiency Efficiency is not derived from individual efforts, but by optimising the collective 63 LSS Green Belt DEFINE v2.6 The characteristics of a good core team member A good core team member should: • Have operational expertise in one or more sub-processes of the high-level process flow • Be familiar with the problem • Be motivated to fix the problem • Commit to remain on the project until its completion • Have the support of his or her manager 64 LSS Green Belt DEFINE v2.6 32 Document the agreed team roles within the Project Charter The Project Charter should document these project roles within the “team selection”: Project #: 000000000 Project Chart er Required information for each team member: Problem Statement • Name Business Case Summary Project Scope • Department • Role on the project team Goal Statement Team Selection • Approximate percentage of time required on the project 1 Team Leader Organi zat i on Black Belt 100% Project Champi on Organi zat i on Champi on 100% Coach Organi zat i on M BB 10% Team M ember Organi zat i on SM E 20% Team M ember Organi zat i on SM E 20% Team M ember Organi zat i on Role 20% Team M ember Organi zat i on Role 20% Team M ember Organi zat i on Role 20% Team M ember Organi zat i on Role 20% (01/ 06) 65 LSS Green Belt DEFINE v2.6 Forming a team FORM TEAM There is more to forming a team than gathering a group of people together M OR RF PE G IN G Orientation IN M Dependence All teams will “go through” these stages. The Belts’ role is to be aware of this and help the team through. Note that the inclusion of a new team member at any stage will cause the team to return to “forming” G Conflict IN RM NO Cohering OR ST G IN RM FO Social relationships development Interdependence Work organisation development Information flow Organisation Problem solving 66 LSS Green Belt DEFINE v2.6 GB M1 06 Forming the Team Iss 3.0 © The Six Sigma Group 16 33 DEFINE Change Adoption Why is Change Adoption Important? E=QxA E = Effectiveness of the solution Q = Technical quality of the solution A = Acceptance of the people 68 LSS Green Belt DEFINE v2.6 34 The change curve COMMITMENT Happiness Moving on Morale & Competence DENIAL Gradual Acceptance Fear Threat Understanding Guilt DEPRESSION Anger / hostility Defeat Time 69 Original source Elizabeth Kubler-Ross (1969) LSS Green Belt DEFINE v2.6 Change targets Impacted Populations • People who are directly impacted by the change; way of working, organisation etc • Typically front-line, staff, middle management etc • Usually managed on a group basis Key Stakeholders (individuals) • Key individuals involved in the project or who have a vested interest in the project • Typically top-management • Usually managed on an individual basis Work Councils, Unions & Authorities • Organisations involved in the management of social & legal aspects of the change 70 LSS Green Belt DEFINE v2.6 35 DMAIC Change Management Strategy Define Measure Analyse Identify impacted population Impacted populations Control Improve Reinforce Assess skill gaps and set-up training Understand benefits and resistance to change Set-up accompanying structure and action plan to minimise resistance to change Involve / Inform management and teams Identify stakeholders Key Stakeholders (individuals) Understand stakes and attitudes Engage stakeholders Work Councils / Unions Understand social impact of the project Keep Work Councils Unions informed Inform / Consult Work Councils / Unions Review legal requirements 71 LSS Green Belt DEFINE v2.6 Change adoption Impacted populations Key Stakeholders (individuals) Work Councils / Unions Communication Impact analysis Training plan Leadership engagement Stakeholder mapping Change history assessment Communication plan 72 LSS Green Belt DEFINE v2.6 36 Identify & Engage Key Stakeholders  Identify the key stakeholders associated with the project  Evaluate their influence over the project  Assess how much they support the project  Prioritise communications actions in order to engage stakeholders and to maximise their positive impact on the project 73 LSS Green Belt DEFINE v2.6 Resistance distribution “What’s in it for me” “Need to touch to believe” “Up for Change – no matter what” Innovators 10% “See it as MY role” Early Adopters Late Adopters Resistors 40% 40% 10% 74 LSS Green Belt DEFINE v2.6 37 In relationships, Synergy and Antagonism co-exist... Synergy 1 «red line» ? • Synergy > Antagonism : it’s easy to work together ! 1 • Synergy < Antagonism : easy to disagree with each other ! 2 3 2 3 • Synergy = Antagonism : I am still undecided Antagonism We’d like to do something together (the Bridge), but ... the Bridge The Gap ... we have different priorities, interests and constraints (the Gap)… LSS Green Belt DEFINE v2.6 75 4 levels of Synergy and Antagonism can be expressed at the same time «Blue lines» = under the line (+1, +2 or -1, -2) Synergy and Antagonism are passive qualities. Synergy Devoted Active Synergy +4 Co-operative +3 Interested +2 Minimalist Passive Synergy Only on a specific item, at a given time ! +1 -1 -2 Passive Antagonism -3 -4 Antagonism Active Antagonism Indifferent Disinterested Reluctant Hostile 76 LSS Green Belt DEFINE v2.6 38 Stakeholders mapping – Principles Antagonism attitudes Synergy Personal game Intention credit / common game +3 He/she takes the initiative to develop synergies, seeks consensus, offers suggestions, uses some of his own levers to support the project team. If they follow him/her, then synergy will increase in their relationship. +2 He/she is interested in what the project team want, say or do. He consults, discusses and works but does not seek to go beyond what is strictly necessary… +1 Rather favourable, he/she limits his/her relationship with the project team to the strict essentials… -4 He/she leverages absolutely everything to impose his/her own solution. If he/she does not succeed in doing so, he/she will break off the relationship ! devoted +1 interested +3 minimalist +2 co-operative +4 +4 He/she identifies themselves with the project team in order to help reach a common objective, even if the team members are reticent Synergy -3 He/she uses more important levers to impose his own solution. If they do not succeed in doing so, he/she gives in and only to superior power and for a given period -1 disinterested -3 indifferent-2 reluctant hostile -4 Antagonism -2 He/she uses certain levers and tries to obtain the best possible compromise for themselves via negotiation. He/she can give in at the end of the day… -1 He/she hesitates because they are fairly indecisive. He/she will rally to a contrary point of view in a passive manner, with someone who is more decisive than them 77 LSS Green Belt DEFINE v2.6 Stakeholder mapping : an essential tool to cope with Antagonism • Undecided : they are ready to get involved if they get something in return • Hostile : they will give in only when confronted by a stronger power ; they can decide to stop the confrontation • Opponent : they are driven by the satisfaction of their own interest • Committed : they support the cause • Constructive : they support the project, and may offer positive criticism • Torn apart : they have equal amounts of love and hate... Synergy Committed Passive : they do the minimum devoted +1 interested +3 minimalist +2 co-operative +4 • Constructive Passive Torn apart Hostile -1 disinterested -3 indifferent-2 reluctant hostile -4 Antagonism 78 LSS Green Belt DEFINE v2.6 39 Stakeholder management – The Allies strategy Once stakeholders are identified, then elaborate a strategy for each category Passive Allies management Strategy Torn apart Constructive Committed devoted +1 interested +3 minimalist +2 co-operative +4 Synergy Hostile -1 disinterested -3 indifferent-2 reluctant hostile -4 Antagonism Any positioning is only meaningful :  at a given date  on a given subject / topic • Spend 2/3 of your time with your "Allies" : − Praise their efforts, accept them for what they are, support them, spend time with them… and in return, be demanding ! − Surround the Passives and the Undecided, motivate them by offering them a joint stream to work on, compromise on issues of lesser importance… − Propose / suggest (at any moment) to the Passives to rally to a project, thus increasing their synergy • Use your Allies to convince, ignore or exclude your opponents : − With 1/3 of your time (maximum), contain the attempts of the Opponents and Hostiles to rally the Undecided and the Passives to their side, by making counter-offers. − If necessary, neutralise the Hostiles, maybe by changing the scope of your project… 79 LSS Green Belt DEFINE v2.6 Example of Stakeholders management strategy Involve Delegate specific tasks Commit Seek their opinion and build new options with them Optimise invested time Negotiate Show enthusiasm Treat well Use key Allies to convince or exclude them Explain +1 minimalist Impose Support Delegate interested +2 Negotiate Involve / Support Support +3 co-operative Federate devoted +4 Synergy Secure Isolate Do not leave unattended… Get rid of them if necessary Antagonism -1 indifferent disinterested -2 -3 reluctant hostile -4 80 LSS Green Belt DEFINE v2.6 40 Where should we map our stakeholders? Where people are located on the stakeholder map depends on the specific project/point of application and the precise moment in time As you us the tool.. Don’t try to guess, ignore or analyse the reasons why.... ...rather measure the facts, focus on behavioural observation, Many positions seem irrational but... … there is always a rationale in the individual interests of different partners ! Build your perceptions through cross information, exchange points of view with team members Define key actions with project management Don't think people will stay where you saw them the last time ! Things, actions and positions move… all the time !... Because that's what Change Adoption is all about…LSS Green Belt DEFINE v2.6 81 Communications Plan Use a communication plan to ensure stakeholders are kept properly informed and engaged throughout the change process. Ensure you adjust your communication strategy based on the issue under discussion and where the stakeholder is on the stakeholder map 82 LSS Green Belt DEFINE v2.6 41 Table exercise: Stakeholder mapping Objective: To produce a stakeholder map Working in groups of 3-4, read the briefing document on the next slides. You are a project manager about to kick-off a crossfunctional project on the bid process 1. Map the stakeholders positions 2. Think and plan the top 5 actions to get a better picture of the stakeholder positions Time 45 mins + 15 mins discussion 3. Are there any immediate communication needs? 4. Use the communication plan template to plan any communication needs 83 LSS Green Belt DEFINE v2.6 Committed +1 interested +3 devoted minimalist +2 co-operative +4 Synergy Torn apart Constructive Passive Hostile -1 disinterested indifferent -2 -3 reluctant hostile -4 84 Antagonism LSS Green Belt DEFINE v2.6 42 Table exercise: Stakeholder mapping - briefing • NOTE this is an invented set of characters; there is no similarity to any of the people involved in the real project Name Role/Organisation Leonard Sponsor Cameron Business Line leader Giles Head of Credit Scott Credit Approval Analyst Ray Bid Manager Julie Sales Lead 85 LSS Green Belt DEFINE v2.6 Leonard Sponsor Leonard has worked at BFB for 15 years. His wife also used to work for BFB where she was a successful Lean Six Sigma Project Manager and was recently recruited by another Financial Services company to head their Lean Six Sigma programme. Leonard has become increasingly interested in Lean Six Sigma as he has seen it succeed. He has been with BFB long enough to have seen many other improvement initiatives start and fail. Before Relationship Management he used to be Head of HR at BFB. His preferred business style is to reach consensus smoothly and always put the client first. He is not a detailed person; always talks about the big picture; tends to delegate rather than direct. 86 LSS Green Belt DEFINE v2.6 43 Cameron Business line leader Cameron has 25 years experience in the Financial Services industry and has successfully identified and built a new broker/dealer client segment at BFB. Whilst initially profitable, in the last year the smaller clients have struggled in the postcrash environment and in turn some have become loss-making for BFB. Cameron is commercially and politically astute. He knows there needs to be radical change to the bid process to ensure new clients brought in are profitable for BFB. He believes great client service and a cross-functional bid approach are key to this. He reports locally to the CEO and to the Global Business Head. Both are close to retirement age and he knows that if he can successfully turn-around the segment he could be in line for an Executive position. Cameron exudes old-school charm which the clients love and he is a gentleman to work with at BFB. 87 LSS Green Belt DEFINE v2.6 Giles Head of Credit Giles has a Masters in Economics from the Sorbonne. He has taken great intellectual interest in the recent crash in Financial Services and has written several papers on the topic which have been published in The Economist. Giles’ economic expertise is acknowledged and respected within BFB and he is based in the Head Office so he is on hand to advise the Global Business Head. At the weekend he goes sailing with the Head of the BFB Group. This relationship has helped secure him several senior credit positions within the group despite his lack of leadership & communication skills. His direction to the Credit Approval team is to be risk-averse and follow the procedures but he also personally looks into some Credit applications which his team have advised against for his old colleague Julie (Sales Lead). 88 LSS Green Belt DEFINE v2.6 44 Scott Credit Approval Analyst Scott has worked in Financial Services for 18 years, 10 at BFB. His previous role was as a Sales Lead where his fingers were burnt in the crash when his client went bust and cost the organisation £2.5million when they defaulted on a loan that he had secured credit approval for. Scott took a career change to the Credit Approval team where he is passionate about protecting the bank from Credit Risk. His experience in Sales and Credit make him ideal at working with the client and Sales leads to come to a Credit agreement that works for both parties. But with some of the smaller broker dealers, Scott knows that their risk is too high for BFB’s credit policy and clearly explains this from the start. Scott works hard and gets frustrated when Julie contacts Giles after her client application has been declined. Not following the procedure wastes everyone’s time and frustrates the client. 89 LSS Green Belt DEFINE v2.6 Ray Bid Manager Ray has worked for BFB for 5 years. He keeps a low profile but is well respected by his team and works hard and diligently. He used to be a Police Officer where he enjoyed working in an environment of strict rules which were followed and great team spirit. His role is to compile the bid based on the information provided to him by Sales and the Business Line. Conditions of the bid are provided by Credit, Legal and Compliance. The Request for Proposal (RfP) process works to strict market deadlines so Ray depends on the information being provided to him in a timely manner. In reality his team spend a lot of time chasing and end-up working long hours and weekends before the deadline. As a result, quality of the bid suffers and Ray feels disenchanted by the organisation, struggling to maintain morale in his team. 90 LSS Green Belt DEFINE v2.6 45 Julie Sales Lead Julie is the rising star of the sales team. She started her career in Head Office and made it her business to become and stay well connected with the senior players. Julie has had some early success with winning broker/dealer business. Following implementation some of these deals have not turned out to be as profitable as forecast which has not gone unnoticed by the Business Line or Credit department. Julie is the consummate sales person and focuses on the win. Individualist by nature she does not follow procedures but makes calls to her network of senior players to make things happen. This causes friction with her colleagues that make up the deal team but the behaviour seems to be tolerated and even encouraged by senior management. Julie’s ambition is to be the Sales Lead on high profile deals and eventually transfer back to Head Office to take on the role of Global Business Head when the incumbent retires. 91 LSS Green Belt DEFINE v2.6 Change adoption - Summary E=QXA Change adoption techniques should be used at every stage of the change journey Use mapping tools to adjust your communication approach with different stakeholders Remember that stakeholders perception of change moves over time be prepared to adapt your approach 92 LSS Green Belt DEFINE v2.6 46 Lean Six Sigma simulation: Round 2 The coin simulation Objective: Use the tools covered in this module to prepare A project charter for the process. Your instructor has some information but will only give it to you if you ask the correct questions! Re-run the simulation implementing 1 quick win. 60 mins 93 LSS Green Belt DEFINE v2.6 Recommended coach support points When agreeing the scope of your project Defining your problem statement Gathering VoC data and translating it to CTQs Drafting your Define tollgate project charter 94 LSS Green Belt DEFINE v2.6 47 Key points of the module Defining the business problem is of critical importance to the success of any Lean Six Sigma project The Project Charter pulls together the key components of the Define phase Change adoption efforts should start as early as possible and continue through to completion of your project 95 LSS Green Belt DEFINE v2.6 48 MEASURE Lean Six Sigma Green Belt Objectives of this module At the end of this module, you will be able to: Use various mapping techniques Identify potential root causes Understand the basics of data Conduct an attribute MSA Baseline process performance relative to customer requirements Create and execute a data collection plan 2 LSS Green Belt MEASURE v2.6 1 Six step approach 1 2 3 4 5 6 Value stream mapping C&E diagram Data types Sources of measurement variation Special and common cause Data collection planning Activity of the product C&E matrix Shape Planning an MSA Control charts Sample size Block diagrams FMEA Centre Operational definitions Calculating capability Sampling strategy Spread Conduct a discrete MSA Calculating stability Normality Analyse MSA results Detailed process maps Graphs for comparison 3 LSS Green Belt MEASURE v2.6 MEASURE Map the process 2 Step 1: Map the process Value stream mapping C&E diagram Data types Sources of measurement variation Special and common cause Data collection planning Activity of the product C&E matrix Shape Planning an MSA Control charts Sample size Block diagrams FMEA Centre Operational definitions Calculating capability Sampling strategy Spread Conduct a discrete MSA Calculating stability Normality Analyse MSA results Detailed process maps Graphs for comparison 5 LSS Green Belt MEASURE v2.6 Preview of the lesson In this module we’ll discuss the need to document the existing process as a first step to improve it. We’ll review: Different mapping techniques How to create them 6 LSS Green Belt MEASURE v2.6 3 Types of visual maps Value Stream Map See the whole process, from beginning to end. Focuses on the journey of a “product” from order to delivery Block / Chevron Diagrams Define Measure Analyse Improve Control High Level, low detail, typically showing phases Process Map Detailed, with different symbols representing different types of activities Request for services Prepare documents Transmit Documents for Peer Review No Conduct Peer Review Do Docs meet Customer Req’ments Are documents acceptable Yes Transmit Documents for Technical review Store Docs Complete Technical review Compile final package 7 LSS Green Belt MEASURE v2.6 Styles of maps Value stream map (VSM) A value stream map is all of the actions, both valuecreating and non value-creating required to bring an order to delivery A VSM is therefore a “picture” of the process from a products point of view Consistent use of icons are needed to create a clear picture of the value stream. 8 LSS Green Belt MEASURE v2.6 4 The company view of itself Executive Sales Commercial Procurement Project Controls Production Strategy Strategy Strategy Strategy Strategy Objectives Objectives Objectives Objectives Objectives Team Team Team Team Team Companies are usually organised vertically – for a transaction to be completed, it flows up and down each department before being passed onto the next department. 9 LSS Green Belt MEASURE v2.6 The customers’ view of the company Customer Company Sales Commercial Procurement Project Controls Production The customer views and experiences only a proportion of the interactions required in the production of a product / processing a transaction / provision of a service. Customers are not concerned with the handoff between teams or their individual performance. They are concerned by the end result and their experiences along the 10 way. LSS Green Belt MEASURE v2.6 5 Typical VSM icons Activity Tasks Customer/Supplier Staff Dedicated Process Shared Process I Information Flow Electronic Information Flow Courier Work in Progress / Inventory Withdraw Kanban Supermarket Production Kanban Database (Excel/Access, etc.) Tuesday + Thurs Transport Push Flow Pull Flow Finished Goods Flow LSS Green Belt MEASURE v2.6 11 Creating a value stream map A “current state” value stream map is prepared to help build a picture of how the existing process delivers value to the end customer To create a current state value stream map: Define a unit of product The team should follow a “product” through the entire value stream (physically if possible) Post-it notes and pencil should be used to sketch out the first drafts allowing you to refine as you learn more Use the standard icons as shown on the previous slide Collect “real” data, don’t rely only on process documentation or existing reporting 12 LSS Green Belt MEASURE v2.6 6 Typical sequence to building a VSM Identify Customers & define value Identify customers and define value Include a clear definition of value from the customer perspective Demand on the process incl quantities, mix, batch size and working hours Transport Identify activities Supplier and supplier info Transport from supplier Data collection Transport Delivery frequency, mode of transport Identify activities The activities/processes through which the process is flowing A picture of the flow including parallel processes and branches Supplier and supplier information What is delivered, delivery frequency, pack sizes Information flows Material flow data Monday + Thurs Friday Receive Timeline Build Pack 13 LSS Green Belt MEASURE v2.6 Key measures and definitions Identify Customers & define value Transport Identify activities Supplier and supplier info Cycle Time CT The rate at which product is produced at any point in the value stream Value Adding Time V/A The time during which value is added for the customer Waiting Time WT The time work in progress is waiting for the next operation to become available Lead Time LT The elapsed time between a piece of work entering the value stream and the time it is released (to an internal or external customer) or is completed. Processing Time PT The elapsed time from when the product enters a process until it leaves that process Uptime UT % of planned operating time the process operates assuming product is available to work Transport from supplier Data collection Information flows Material flow data Timeline 14 LSS Green Belt MEASURE v2.6 7 Key measures and definitions Identify Customers & define value Transport Identify activities Work in Progress (Process) WIP Pack size / Pack-out quantity Volume of product required by the customer for movement or shipment Scrap rate % of total product that does not meet customer requirements and must be discarded Rework rate % of total product that does not meet customer requirements and must be worked on again Defect rate % of total product that does not meet customer requirements and includes both scrap and rework rates Number of people Number of people per process on an FTE (full time equivalent) basis Available time Time that the VSM can run continuously Supplier and supplier info Transport from supplier Data collection Number of items in process or waiting at each activity Information flows Material flow data Timeline TAKT time TAKT Available time / Customer demand 15 LSS Green Belt MEASURE v2.6 Typical sequence to building a VSM Identify Customers & value Transport Identify activities Supplier and supplier info Transport from supplier Information flows Information flows inform each process what to do next. Examples include schedules, priorities and forecasts Material flow data Information on whether the product whether in raw material, finished goods or part-completed is pushed or pulled through the value stream. Timeline How long the product has taken to journey through the value stream. Information to be added to the VSM includes available time, production rate per day, processing time for each process and inventory wait time Data collection Information flows Material flow data Timeline 16 LSS Green Belt MEASURE v2.6 8 Shingo model The key principal of the Shingo model is: Analyse Separately, Design as One Separately analyse the activity of the product, staff and equipment to locate the waste in a process Design a process solution that integrates the elements 17 LSS Green Belt MEASURE v2.6 Activity of the product (AoP) We start with AoP as up to 80% of the improvement opportunity lies with what happens to the product: Activity of the Equipment (AoE) Activity of the Product (AoP) Activity of Staff (AoS) 50 – 80% of the improvement opportunity exists here AoE 1 AoE 3 Prepare Pre-Sales Collect Gain Set-up Fund Complete Prepare Pre-Sales Collect Gain Set-up Fund Complete Package Information Approvals Account Account Account PreparePackage Pre-Sales Collect Gain Set-up Fund Complete Information Approvals Account Account Account PreparePackage Pre-Sales Collect Gain Set-up Fund Complete Information Approvals Account Account Account PreparePackage Pre-Sales Collect Gain Set-up Fund Complete Information Approvals Account Account Account PreparePackage Pre-Sales Collect Gain Set-up Fund Complete Information Approvals Account Account Account PreparePackage Pre-Sales Collect Gain Set-up Fund Complete Information Approvals Account Account Account PreparePackage Pre-Sales Collect Gain Set-up Fund Complete Information Approvals Account Account Account PreparePackage Pre-Sales Collect Gain Set-up Fund Complete Information Approvals Account Account Account PreparePackage Pre-Sales Collect Gain Set-up Fund Complete Information Approvals Account Account Account PreparePackage Pre-Sales Collect Gain Set-up Fund Complete Information Approvals Account Account Account PreparePackage Pre-Sales Collect Gain Set-up Fund Complete Information Approvals Account Account Account PreparePackage Pre-Sales Collect Gain Set-up Fund Complete Information Approvals Account Account Account PreparePackage Pre-Sales Collect Gain Set-up Fund Complete Information Approvals Account Account Account Prepare Package Pre-Sales Collect Gain Set-up Fund Complete Information Approvals Account Account Account Prepare Pre-Sales Information Collect Gain Set-up Fund Complete Package Approvals Account Account Account PreparePackage Pre-Sales Collect Gain Set-up Fund Complete Information Approvals Account Account Account Prepare Pre-Sales Collect Gain Set-up Fund Complete Package Information Approvals Account Account Account Prepare Pre-Sales Collect Gain Set-up Fund Complete Package Collect Information Gain Approvals Set-up Account Account Complete Account PreparePackage Pre-Sales Fund Information Approvals Account Account Account Package Information Approvals Account Account Account* AoS 1 AoS 2 AoS 3 AoS 4 AoS 5 AoS 6 The product flow (AoP) reveals the overall level of waste in the process. Its journey is impacted by both the people and equipment. 18 LSS Green Belt MEASURE v2.6 9 The four possible activities of a product There are four activities that can happen to a product at as it moves from one end of the process to the other. A product can be: Stored (Non-Value-Adding) Transported Inspected The Product (Non-Value-Adding) (Non-Value-Adding) Processed (Value-Adding or Non-Value-Adding) How did we define value-adding activity? 19 LSS Green Belt MEASURE v2.6 The structure of AoP template The AoP analysis worksheet consists of three sections: Section 1 Section 3 Describes what happens to the product Lists and categorises the average cycle time for each activity of the product (stored, transported, inspected or processed) Section 2 Lists the cycle times for the activity, and displays descriptive statistics 20 LSS Green Belt MEASURE v2.6 10 The Structure of AoP Template, Continued The second tab of the template summarises the AoP data in tabular and graphical formats and will provide you with a baseline of the value add time in the process The tabular format lists the total processing time for each activity category and its percentage of contribution to the total lead time for the product. 21 LSS Green Belt MEASURE v2.6 Why and when spaghetti diagrams are used in the step Spaghetti diagrams depict the physical travel or movement of a product, helping you identify waste across the production environment whether that be an office or manufacturing facility The AoP study “quantifies” the travel or movement of the product. A Spaghetti Diagram shows a product’s travel distance and pattern as it flows through a single cycle of the process. Use a Spaghetti Diagram when the product moves physically through the process. Spaghetti Diagrams can also track staff movement. 22 LSS Green Belt MEASURE v2.6 11 Quantify the current inventory levels throughout the process Inventory is: The raw materials, work in progress and finished goods in a process that are not yet delivered to the customer Inventory can exist in a physical or virtual state What problems might occur my holding too much inventory? How much inventory is just enough? 23 LSS Green Belt MEASURE v2.6 How inventory is identified and quantified Identifying and quantifying inventory is straightforward. As you follow the product through the process, locate and count each inventory type: Raw materials inventory (before and after each process step) Work-in-progress (the number of products at each process step not fully transformed into the end product or service) Finished goods inventory (any completed products that are being stored or held) The count of each inventory type is recorded on a Inventory Map. 24 LSS Green Belt MEASURE v2.6 12 How inventory is identified and quantified, Continued Virtual inventory is more difficult to identify and quantify. Virtual inventory exists in the form of electronic files. For example, a list of pending applications stored on a computer server Another example are IT change requests which are work in progress virtual inventory. Review the information systems used at each process step for virtual inventory 25 LSS Green Belt MEASURE v2.6 Inventory maps An Inventory Map graphically depicts the volume of inventory in the process at a given point in time. The inventory is shown on a physical layout of the workplace. Icons indicate where and how much inventory exists at the given point in time. “One Size Fits All” Icon 17 Scalable Icons 25 5 1 26 LSS Green Belt MEASURE v2.6 13 Baseline Rolled Throughput Yield (RTY) Yield is the percentage of products that are judged as “good” from the total number of products processed. The “product” is the reference product from the Value Stream Map. Yield Number of “Good Products” = Number of Products Processed x 100 The yield of a process is the yield of the process steps multiplied together 27 LSS Green Belt MEASURE v2.6 How Yield is calculated 100 Products Yield = Number of “Good Products” Number of Products Processed Product Flow Yield1 = 100 / 100 = 1 Step 1 100 3 Scrapped Step 2 7 Reworked Yield2 = 97 / 100 = 0.97 97 3 Scrapped Step 3 10 Reworked Yield3 = 94 / 97 = 0.97 5 Reworked Yield4 = 92 / 94 = 0.98 The effort to fix defects in a process is often called the “hidden factory”. 94 2 Scrapped Step 4 92 Good Products After Rework The traditional yield calculation does not account for defects fixed through rework! Process Yield = Process Yield = 1(0.97)(0.97)(0.97)(0.98) = 0.92 1(0.97)(0.97)(0.98)=0.92 or 92% Or 92% 28 LSS Green Belt MEASURE v2.6 14 RTY is the preferred measure of product quality The Rolled Throughput Yield (RTY) reveals the rework that occurs in a process (the hidden factory). RTY is the probability that a single unit can pass through a series of process steps free of scrap or rework Number of Products Processed – (Number of Products Scrapped and Reworked) RTY = Number of Products Processed It is the product of the yields of the individual steps of a process in sequential order. 29 LSS Green Belt MEASURE v2.6 How RTY is calculated 100 Products RTY = Number of Products Processed – (Number of Products Scrapped and Reworked) Number of Products Processed Product Flow RTY1 = (100 – 0) / 100 = 1 Step 1 100 3 Scrapped Step 2 7 Reworked RTY2 = (100 – (7+3)) / 100 = 90/100 = 0.90 10 Reworked RTY3 = (97 – (3+10)) / 97 = 84/97 = 0.87 97 3 Scrapped Step 3 94 2 Scrapped Step 4 92 Good Products After Rework 5 Reworked RTY4 = (94 – (2+5)) / 94 = 87/94 = 0.93 RTY = 1(0.90)(0.87)(0.93)= 0.73 or 73% 30 LSS Green Belt MEASURE v2.6 15 Definition of a process Dictionary A series of activities, changes or functions bringing about a result Practical A manner or order in which a task is carried out repeatedly A systematic way of reaching an objective A Process is not the same as a procedure A procedure is usually a written set of steps / instructions which when repeatedly followed targets consistency of the performance of a specific function. SOP – can refer to either Standard (or Standing) Operating Procedures 31 LSS Green Belt MEASURE v2.6 Block Diagrams A block diagram is the simplest type of map. It provides a quick and uncomplicated view of the high level process Only rectangles connected by lines are used in this type of map. The rectangles represent major activities and the arrows indicate direction of flow Block diagrams can be used to simplify large and complex processes 32 LSS Green Belt MEASURE v2.6 16 Example block diagram Establish System Requirements Perform Calculations Obtain Vendor Information Develop Drawing Issue Construction Package Block Diagrams Normally contain only rectangles Help show process scope Identify major steps and flow Contain 5-7 Blocks; fit on one page Block Diagrams are typically used for presentations or management overviews They do not provide the detail needed for diagnostics or problem solving 33 LSS Green Belt MEASURE v2.6 The block diagram scopes the detailed process map The block diagram can provide context: Invoice customer Initial followup Collection letters Litigation Sale of debt While the detailed process map can be used to break these steps down further 34 LSS Green Belt MEASURE v2.6 17 The levels of process detail The detailed process map breaks down the sub-processes in the block diagram: Block Diagram Sub-process 1. Initial follow up Invoice customer Sub -process Sub-process 2. Collection Letters 3. Litigation Sale of debt Detailed Process Map Pass account to litigation department 3.1 Check customer details Funds available? 3.4 Issue litigation letter Paid? 3.2 Charge off debt Sell debt A/c up to date 35 LSS Green Belt MEASURE v2.6 Symbols used in detailed process maps All Process Maps use symbols to depict the flow. Symbol Description Start and End Symbol Action Decision Point Direction of Flow 36 LSS Green Belt MEASURE v2.6 18 Identifying boundaries for your process Boundaries define the start and end points of the process: Start Pass account to litigation department End 3.1 Check customer details Funds available? 3.4 Issue litigation letter Paid? Sell debt No 3.2 Charge off debt A/c up to date 37 LSS Green Belt MEASURE v2.6 Functional process maps Process maps can be built in a functional (swim lane) format: Organization 1 Organization 2 Organization 3 Functional (Swim Lane) Process Map No Yes No No Yes 38 LSS Green Belt MEASURE v2.6 19 Components of a detailed process map Detailed Process Maps build on the process flow by depicting input variables, outputs, specifications and/or targets and key metrics. Outputs from the process actions (the little y’s) y Approved Loan with Payment Amount Input variables for the process actions (the x’s) Determine Loan x’s Payment Amount SOP–Loan Application N–Loan Amount N–Interest Rate C–Length of Specifications and/or targets Loan for the input C–Approver Target Payment Amount Determined within 1 Day from Receipt of Application variables and outputs Key metrics, such as time, cost, yield, CTQ requirements, etc. 39 LSS Green Belt MEASURE v2.6 Steps to develop a detailed process map 1. Determine the format for the Detailed Process Map eg vertical or horizontal 2. Identify the flow of steps and decisions within each sub-process. 3. List the outputs for each step. 4. List the inputs for each step. 5. Classify the input variables as Noise, Controllable or Standard Operating Procedure. 6. List the current specifications and targets for the process inputs and outputs. 7. Evaluate the Detailed Process Map to ensure that all criteria have been met. Your detailed process map will be complete when you can answer the following two questions adequately: Who is responsible for doing the work to complete each process step and what activities do they perform to complete that work? How does the product or service go from initial input to final output? 40 LSS Green Belt MEASURE v2.6 20 Example of a detailed process map Customer Inquiry Completed Call Request and Obtain Information Greet Customer C: VRU N: Call Volume C: VRU SOP: VRU scripting SOP: VRU Menu N: Customer issue N: Customer information N: Call Volume Inquiry Resolved? Yes No -- route call to agent Greet/Verify Customer C: staff SOP: Telephone SOP: Call Centre System SOP: Personal Computer N: Customer issue SOP: VRU routing algorithm C: Call Centre staffing C: staff SOP: Telephone SOP: Call Centre System SOP: Computer N: Customer issue C: Call Centre staffing Resolve Inquiry Survey Customer SOP: Automated Survey System 41 LSS Green Belt MEASURE v2.6 Class Activity: Mapping Exercise Objective: to practise mapping Team A: draft a value stream map for a process you know well highlighting what information you’d collect to complete it Time - 45 minutes (incl 10 min de-brief) Team B: create a Block diagram and swim lane detailed process map for one of the following; Your project The process to book on this course 42 LSS Green Belt MEASURE v2.6 21 Summary of key learning points VSM’s are the key maps to understand the whole of the process. They include how the materials, information or product flows through the process. [“Cradle to Grave” or “Soup to Nuts”] Capture key metrics such using Activity of the Product, Spaghetti Diagrams and Inventory Maps as you go Block diagrams are used to summarise a large process. Process Mapping (flowcharting) is used to drill down into a process, allowing it to be analysed for interactions etc. This takes time and therefore can be costly so care should be taken to ensure that the scope is carefully defined 43 LSS Green Belt MEASURE v2.6 MEASURE Y = f(x) 22 Step 2: Identify potential root causes Value stream mapping C&E diagram Data types Sources of measurement variation Special and common cause Data collection planning Activity of the product C&E matrix Shape Planning an MSA Control charts Sample size Block diagrams FMEA Centre Operational definitions Calculating capability Sampling strategy Spread Conduct a discrete MSA Calculating stability Normality Analyse MSA results Detailed process maps Graphs for comparison 45 LSS Green Belt MEASURE v2.6 Preview of the lesson In this module we’ll discuss how to identify potential root causes using the following techniques: Cause & Effect diagram Cause & Effect matrix FMEA 46 LSS Green Belt MEASURE v2.6 23 What is Y = f(x)? The “Y” in this simple formula relates to the output of a process: At a point in time Over a period of time At a point in the process Overall for a set of process steps Examples include: Total time required to complete all process steps (lead time) Percentage of deliveries achieved according to customer demand Percentage of pizzas delivered within 15 minutes of order 47 LSS Green Belt MEASURE v2.6 What is Y = f(x)? The “x” is the input upstream process indicator In-process measures Upstream from the customer of the process Taken at key points in a process to assess performance and intervene before customers are impacted Knowing how these inputs (Xs) drive the process output (Y), allows us to predict and control process performance. For this reason, the process output (Y) is sometimes referred to as the dependent variable while the input (X) is referred to as the independent variable 48 LSS Green Belt MEASURE v2.6 24 Developing outcome indicators Customer Requirement = Outcome Indicator Helpful guidelines: Measure data at intervals Describe how to measure Measure defects/non-conformance Avoid using averages alone Understand customer specifications 49 LSS Green Belt MEASURE v2.6 Developing outcome indicators Avoid using averages alone as outcome (Y) indicators Pipe Spool Deliveries (What is the average delivery time of each supplier?) Shipment 1 Shipment 2 Shipment 3 Fabricator 1 8 weeks 8 weeks 8 weeks Fabricator 2 4 weeks 6 weeks 14 weeks 50 LSS Green Belt MEASURE v2.6 25 Developing outcome indicators Understand Customer Specifications Customer Valid Requirements Customer Specification(s) Outcome (Y) Indicators 30 minutes or less from order placement to delivery Fast Delivery Hot Pizza Y1 = % pizzas delivered >30 min. Y2 = Actual pizza delivery time Y3 = % pizzas delivered >10 min. from "out-ofoven" At least 140 F Y4 = Actual time from "outof-oven" to delivery 51 LSS Green Belt MEASURE v2.6 Developing outcome indicators Consumer Cashier Cook Delivery Ordering Hungry Call in Order Take Order Making/Baking Make Pizza Cook Pizza No Correct? Delivering Yes Deliver Pizza Eat Y4 Y3 Y2 Y1 Y1 = % Pizzas delivered >30 minutes Y2 = Actual delivery time Y3 = % pizzas delivered >10 minutes from “out of the oven.” Y4 = Actual time from “out-of-oven” to customer. 52 LSS Green Belt MEASURE v2.6 26 Identifying the vital few inputs (x’s) Cup of coffee = f (coffee beans; water) Identify on the map where the measures will be applied What are the factors? CREDIT AGENCY Document Couriers Documents/day X1 – coffee beans Y1 3/ day 1/jour TIMES 8:00, 12:00 & 3:00 Telephone requests (urgent) Document faxes MAIL CENTRE 8H INTERNAL MAIL 4H PREPARE DOCUMENTS Deborah Susan/Catherine Sort Files Sort by client /5secs Date Stamp 2 secs Insert in Folder /10secs Prepare file 45 secs X reference file /4min X despatch file /10min Insert in Rack /5secs x1 4H x2 Jean VERIFY CREDIT John/Jeanne X2 – qty of coffee Confirmation of acceptance of file 2H INDICATE EXPIRY DATE 1H VERIFY DOCUMENTS Susan/Catherine John/Jeanne verify docs 10secs/doc verify docs 10secs/doc Check /3min Assign insurance /2min Estimate credit /2min Assign insurance /2min Estimate credit /2min 4H x3 INTERNAL MAIL 4H X3 – hardness of water MAIL CENTRE Deborah Jean Sorti /30s Post File /30s X4 – pH levels of water X5 – Chlorine content of water Etc, etc, etc 53 LSS Green Belt MEASURE v2.6 Identifying the vital few inputs Our process mapping will have identified a number of input variables but not all of these will have an impact on the process output We use one of the following narrowing tools to answer the question, “Which are the potential vital few inputs (x’s)?” Cause-Effect Diagram (Fishbone Diagram) Cause-Effect Matrix (C&E Matrix) Failure Mode Effects Analysis (FMEA) The potential vital few inputs (x’s): Are the short list of x’s that the team identified is believed to have a critical influence or effect on the Y Will be statistically confirmed in the Analyse phase 54 LSS Green Belt MEASURE v2.6 27 Overview of the C&E Diagram The C&E Diagram: Is a visual brainstorming tool to identify potential causes for your problem Also known as a fishbone or ishikawa diagram Process/Procedures People Measurement System Problem or Y Equipment/Machines Environment Materials 55 LSS Green Belt MEASURE v2.6 Prioritising the causes Methods for prioritising causes: Categorise as: High or low control to make or influence change for the identified cause High or low impact upon the stated effect 56 LSS Green Belt MEASURE v2.6 28 Prioritise causes based upon impact to the project Low Control High Priority Matrix Consider Cumulative Impact Start Focus Here High Control, Low Impact High Control, High Impact Don’t Bother See Champion Low Control, Low Impact Low Control, HIgh Impact Low High Impact 57 LSS Green Belt MEASURE v2.6 Steps to identify the potential vital few inputs (x’s) with a C&E diagram 1. Record the Y for the project in the head of the diagram, stated as a problem or effect. 2. Determine the categories for the causes on the spines of the diagram (e.g., consider People, Materials, Measurement Systems, Equipment/Machines, Process/Procedures, Environment) 3. List the causes and attach them to the appropriate spines. 4. Identify the potential vital few causes by using a Priority Matrix. 5. Align the potential vital few causes with the inputs from the Process Map. 58 LSS Green Belt MEASURE v2.6 29 Example of a Cause-Effect diagram People Process Workplace Organization Tenure Visual Managment Typing Speed Technical Training Marketing Events Computer Skills Routing Algorithm Spirit Training Fax Locations Statement Cycles Coaching Frequency Reference Preference Hiring Score (Manual vs. Web) VRU Scripting Sales Training Customer IQ Policies & Procedures Soft Skills Training Soft Skills Traiing Computer Desktop Speed of Answer is Too Slow Customer Service Experience Systems hardware Monthly Econ. Cycles Infrastructure Capability Previous Customer Experiences Switch Algoritms Systems availability Time of Day Day of the week Network Stability Network Speed Long Term Economic Cycles Customer Mood/Attitude Computer Desktop Economic Events World Events Natural Disasters Systems Environment 59 LSS Green Belt MEASURE v2.6 Example of a C&E diagram, Continued Priority Matrix H Systems availability Typing Speed Network stability Computer skills Previous customer experience Technical training Customer service experience Coaching Frequency Customer IQ Control Fax locations Visual management Workplace organisation Natural disasters Sales training Computer desktop Time of day Economic events World events Switch algorithms Marketing events Network speed Infrastructure capability Tenure Customer mood/attitude Systems hardware Hiring score Day of week Statement cycles Soft skills training VRU scripting Routing algorithm Reference preference Spirit training L L Impact H 60 LSS Green Belt MEASURE v2.6 30 Overview of the C&E matrix The C&E Matrix The C&E Matrix generates an individual score for each of the identified inputs (x’s) on the Process Map. The score defines the collective impact of the identified inputs (x’s) upon all key customer CTQ requirements for the project. Output Ranking Input 1 Input 2 Input 3 Input 4 Input 5 Input 6 Input 7 Input 8 Metric 2 Input Variables (X's) Metric 1 Output Variables (Y's) The potential vital few inputs (x’s) are the inputs on the matrix with the highest scores. 10 8 Score % Rank 3 9 3 3 3 1 3 54 90 102 38 30 34 0 30 7.89% 13.16% 14.91% 5.56% 4.39% 4.97% 0.00% 4.39% 9 1 3 3 61 LSS Green Belt MEASURE v2.6 Steps to identify the potential vital few inputs (x’s) with a C&E matrix 1. List the project metrics. 2. Prioritise each metric. 3. List the inputs (x’s) in the rows of the matrix. 4. Assign a correlation rating for each x and metric pairing. 5. Cross-multiply the priority and correlation ratings to obtain the score for each x. 6. Identify the potential vital few inputs based on the score 62 LSS Green Belt MEASURE v2.6 31 Example of a C&E Matrix 63 LSS Green Belt MEASURE v2.6 Identifying potential vital few inputs Identifying the potential vital few Objective: To use narrowing tools Based on the process of arriving to class on day 1: • Choose to utilise either the C&E Diagram and Priority Matrix; or the C&E Matrix to identify the potential vital few inputs Time - 30 minutes • Discover the potential vital few inputs (x’s) for the following problem: Why do we arrive to class late? 64 LSS Green Belt MEASURE v2.6 32 Overview of FMEA Failure Mode Effects Analysis (FMEA) An FMEA is a systematic way to evaluate and prioritise the potential failures of a process to prevent them from occurring. Failure Modes The things that go wrong (or fail) at a process step Effects The impact of the failure mode upon the customer Causes The sources of variation with the inputs that result in the failure mode Analysis FMEA prioritises the x’s results based on three factors: • Severity of the effect on the customer • Occurrence of the cause • Detection or prevention of the cause or failure 65 LSS Green Belt MEASURE v2.6 The FMEA template 66 LSS Green Belt MEASURE v2.6 33 Steps to identify potential vital few inputs (x’s) with FMEA 1. List the process steps in the Process Function column of the FMEA template. 2. Enter the potential failures for each process step in the Potential Failure Modes column. How can this process step fail? 3. Enter the effects on the customer of a failure in the Potential Failure Effects column. 4. Enter the possible causes for the failure in the Potential Causes of Failure column. 5. Enter the methods and systems used to currently detect the failure in the Current Process Controls column. What do we have in place to either detect or prevent the cause or failure mode so that the effect does not occur? 6. Assign a rating to each effect by using a scale from 1–5 in the Severity (SEV) column. The higher the severity rating, the greater negative impact to the customer. 67 LSS Green Belt MEASURE v2.6 Steps to identify potential vital few inputs (x’s) with FMEA, Continued 7. Assign a rating to each potential x by using a scale from 1–5 in the Frequency of Occurrence (OCC) Column. The higher the occurrence rating, the more frequently the cause occurs and will result in a failure mode. 8. Assign a rating to each potential x by using a scale from 1–5 in the Likelihood of Detection (DET) Column. The higher the detection rating, the more likely the customer will experience the effect. 9. Calculate the Risk Priority Number (RPN) for each potential x. RPN = SEV x OCC x DET 10. Identify the vital few inputs (x’s) for validation in the Analyse phase. Prioritise by: • High-occurrence and low• High RPN Value detection ratings • High Severity Ratings 68 LSS Green Belt MEASURE v2.6 34 Example of an FMEA 69 LSS Green Belt MEASURE v2.6 Analysing the FMEA RPN 70 60 50 40 30 20 10 0 Associate inexperience Slow typing skills Associate Associate does not Customer does not Call Center inexperience with understand Call provide sufficient System is "slow" system center System information Associate's telephone malfunctions Call Center System is down Switch overloaded 70 LSS Green Belt MEASURE v2.6 35 Building an FMEA Failure Mode Effects Analysis Objective: To prepare an FMEA Based on the process of arriving to class on day 1: • Create an FMEA and be prepared to present back to your classmates. Time - 15 minutes 71 LSS Green Belt MEASURE v2.6 Guidelines on when to use the narrowing tools The C&E Diagram Advantages Limitation • It is quick and relatively simple to complete. • Only one CTQ can be evaluated with one fishbone. • It organises the causes into categories. 72 LSS Green Belt MEASURE v2.6 36 Advantages and limitations of narrowing tools, Continued The C&E Matrix Advantages Limitation • It quantifies the influence of each x on the project metrics. • Does not consider level of control • It uses the inputs from the Process Map. • It can evaluate multiple CTQs. 73 LSS Green Belt MEASURE v2.6 Advantages and limitations of narrowing tools, Continued The FMEA Advantages Limitations • There is more rigour in identifying and analysing inputs in a FMEA when compared to a C&E Matrix and a C&E Diagram • It is time consuming to complete. • It is process focused. The flow of the tool follows the flow of the process. • It can evaluate multiple CTQs. 74 LSS Green Belt MEASURE v2.6 37 Summary of key learning points After mapping out the processes Step 1: Identify the key output metrics (Y’s) Step 2: Use the appropriate tool to identify the potential few inputs (x’s) C&E Diagram C&E Matrix FMEA 75 LSS Green Belt MEASURE v2.6 Recommended coach support points The identification and measurement of your process outputs The type of narrowing tools used and the rationale for their selection The potential vital few inputs for your project Y 76 LSS Green Belt MEASURE v2.6 38 MEASURE Basic Statistics Step 3: Basic statistics Value stream mapping C&E diagram Data types Sources of measurement variation Special and common cause Data collection planning Activity of the product C&E matrix Shape Planning an MSA Control charts Sample size Block diagrams FMEA Centre Operational definitions Calculating capability Sampling strategy Spread Conduct a discrete MSA Calculating stability Normality Analyse MSA results Detailed process maps Graphs for comparison 78 LSS Green Belt MEASURE v2.6 39 Preview of the lesson During this lesson we will cover the following basic concepts of: Determining the type of data Assessing the shape of the data Measures of central location Measure the spread Assess the normality of data Creating graphs for comparison 79 LSS Green Belt MEASURE v2.6 Types of Data 80 LSS Green Belt MEASURE v2.6 40 Continuous Data It is measurable data. It is data that can theoretically be subdivided and measured in smaller and smaller units. Based on required precision, we decide the number of decimal places. Small amount of data is required to draw valid conclusions Examples: The length of a cable Thickness of a wire Downtime of a LAN server The average repair time of a machine 81 LSS Green Belt MEASURE v2.6 Discrete data It is countable, indivisible data Whole numbers only—no decimal places Usually related to defects or proportions – after the error has had an effect Illustrates the trends only over a longer time period Large samples sizes are required in order to draw valid conclusions Examples: The number of times a schedule date is missed The number of people absent The number of customers in various market units Percent of products defective 82 LSS Green Belt MEASURE v2.6 41 Data Classification Continuous or discrete? 1.The frequency of failure of a machine (number of times) 2. The number of hours an installed circuit board lasts 3. The number of damaged telephone circuits in a business 4. The number of undelivered bills per month 5. The daily fuel consumption of repair trucks 6. The dollar differences from work order budgets and work order actuals 7. The percentage (%) of phone calls greater than 30 seconds 8. Shoe size? Time - 5 minutes 83 LSS Green Belt MEASURE v2.6 Continuum of data possibilities It is most desirable to be able to measure your Y on a continuous variable scale. Other types of data can certainly be analysed. As you move from the ideal, more samples will be required to show and detect improvement. The data at your disposal can be in many forms: Less Desirable Binary – classified into one of two categories Unordered categories - no rankings Ordered categories – rankings/ratings Count – counted discretely Continuous – on a continuous scale More Desirable 84 LSS Green Belt MEASURE v2.6 42 Descriptive statistics Speed of Call Answer Glasgow Centre 30 Shape of the data (Bell-Shaped or skewed) 25 Frequency 20 Centre of the data (mean, median or mode) 15 10 Spread of the data (range, standard deviation or variance) 5 0 7.50 8.25 9.00 9.75 10.50 Time (secs) 11.25 12.00 12.75 85 LSS Green Belt MEASURE v2.6 Assessing shape - Histogram What does the shape of this Histogram suggest? Speed of Call Answer Glasgow Centre 30 25 Frequency 20 15 10 5 0 7.50 8.25 9.00 9.75 10.50 Time (secs) 11.25 12.00 12.75 86 LSS Green Belt MEASURE v2.6 43 Parts of a Histogram A histogram is made up of three components: Vertical or Y-Axis: Indicates the scale for the frequency of the bars Speed of Call Answer Glasgow Centre 30 Horizontal or X-Axis: Data values grouped into intervals 20 Frequency The scale of values into which the data values fit 25 15 10 5 0 Bars: 7.50 8.25 9.00 9.75 10.50 Time (secs) 11.25 12.00 12.75 Denote frequency of the data within the grouped intervals Provide indication of the shape 87 LSS Green Belt MEASURE v2.6 Advantages and limitations of using a histogram Using a Histogram Advantages • A Histogram displays data in an easy to interpret graph. Limitations • It shows the general shape of data. • A Histogram cannot distinguish exact values; it creates intervals or “buckets” from the data points. • You can place specification limits on a Histogram to show what portion of the data that is within requirements. • It is not meaningful for small data sets; at least 30 measurements are needed. • It will obscure any time differences within your data sets. Use Histograms to answer the following questions: What is the shape of my continuous data? Does my process perform to specifications? 88 LSS Green Belt MEASURE v2.6 88 44 Measures of the central location The three measures of centre: Mean – the average of the data Median – the middle point in the data Mode – the most frequently occurring value in the data 89 LSS Green Belt MEASURE v2.6 Formula for calculating mean Calculating mean: Steps for calculating mean: 1. Calculate the sum of all the data. 2. Divide by the number of data points to calculate the mean. x Sample mean also known as x-bar  Population mean 90 LSS Green Belt MEASURE v2.6 45 Calculating the median What is the median? Is the middle value of the ordered observations Half of the measurements are greater than the median and half are smaller than the median Sample median ~ x Steps to calculate median: 1. Order the numbers from smallest to largest.  Population median 2. If the data set includes an odd number of data points, choose the point that is exactly in the middle. 3. If the data set contains an even number of data points, choose the two numbers that are in the middle and average them. 91 LSS Green Belt MEASURE v2.6 The impact of shape upon centre The Histogram below plots the wait time, in seconds, at a hotel reception desk. The mean wait time is 100 seconds. The median wait time is 74 seconds. Which one should we use? Based on the shape of the data, what might we conclude about these wait times? 92 LSS Green Belt MEASURE v2.6 46 The impact of shape upon centre, Continued Another wait time example: This Histogram represents the wait times for another hotel. The mean wait time is 200.1 seconds and the median is 200.1 seconds. There is no/little difference between the two statistics for centre of the data. Why is this? 93 LSS Green Belt MEASURE v2.6 Guidelines for use of mean and median Mean or Median? If the data is bell-shaped, use the mean to describe the centre of the data. If the data is skewed, use the median to describe the centre of the data. 94 LSS Green Belt MEASURE v2.6 47 Mode Mode is the value in the data that occurs with the greatest frequency. Uniform Skewed Normal Bimodal 95 LSS Green Belt MEASURE v2.6 Spread of data - variation Runway (Manchester Airport) 05 R Touchdown target How consistently do the pilots perform? v We want to be able to measure the performance and use it to compare the quality of pilots. If we were to select a pilot for a new route to SABA – how do we compare their performance? 96 LSS Green Belt MEASURE v2.6 48 Measures of spread Range – difference between the largest and smallest values in the data A Variance – how far each data point is from the mean B Standard deviation – square root of the variance C 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 97 LSS Green Belt MEASURE v2.6 Range Range = x Largest –x smallest 98 LSS Green Belt MEASURE v2.6 49 Limitations of Range as a measure of spread What are the ranges for data sets A, B and C? A B 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 C Range doesn’t account for each point in the data; it only evaluates the extremes. 99 LSS Green Belt MEASURE v2.6 Variance and Standard Deviation Variance does account for every point in the data. Variance evaluates the squared difference of every point in the data from the mean. Variance is not practical since it would be in squared units. To remove a squared term, take the square root. The square root of the variance is the standard deviation. We can use improvement software such as Minitab to calculate variance or we can calculate it manually! 100 LSS Green Belt MEASURE v2.6 50 Variation - Variance Variance is a way of describing how much the data is dispersed around the mean. As the values have been Squared – the units stay in the same units, but now a “Squared” unit. S2 = 1 Mean Max s So VARIANCE is the average of the squared differences from the mean 2 for Population Variance S2 for Sample Variance 101 LSS Green Belt MEASURE v2.6 Standard Deviation The trouble with the VARIANCE – is that the units don’t really make sense. If we are working with time (seconds) – what exactly does seconds2 mean? Standard deviation High Standard Deviation The Point of inflection: where the curve goes from Concave to Convex Our final step is to calculate the STANDARD DEVIATION. This is a way of describing how much of the data is dispersed around the mean. As we squared the values to get the VARIANCE – we apply the Square Root to ensure the answer is in the same units that we started with. S S Mean 102 Low Standard Deviation LSS Green Belt MEASURE v2.6 51 Lets work through an example…. A B 1 2 3 4 5 1 2 3 4 5 C 1 2 3 4 5 A B C Mean 3 3 3 Median 3 3 3 Range 0 4 4 Variance 0 2 2.5 Standard Deviation 0 1.414 1.581 103 LSS Green Belt MEASURE v2.6 Have a go!!! For the data sets shown calculate: 1. Mean 2. Median 3. Mode 4. Range 5. Variance 6. Standard deviation 104 LSS Green Belt MEASURE v2.6 52 Normal Distribution Curve Characteristics of the Normal Curve: • It is symmetrical. • The mean, median and mode have the same value. • There is an equal number of values on either side of the mean. 105 LSS Green Belt MEASURE v2.6 Normal Curve properties σ 68.26% +1σ +2σ 95.46% 99.73% 99.9937% 99.999943% 99.9999998% -1σ -2σ -3σ -4σ -5σ -6σ +3σ +4σ +5σ +6σ 106 LSS the Green Belt MEASURE v2.6 % of the data that falls within +/- x standard deviations from mean 53 Normal Distribution example Handle time (seconds) Text Text Text Text Text Text 68% 95% 99.73% 35 40 45 50 55 60 65 We have an average handle time of 50 seconds and a standard deviation of 5. If the distribution of the handle times is normally distributed, then we should expect to see: • 68% of our calls between 45 and 55 seconds • 95% of our calls between 40 and 60 • 99.73% of our calls between 35 and 65 seconds If you were the call centre manager, how could you use this information? 107 LSS Green Belt MEASURE v2.6 Graphs for comparison - Boxplots Components of the Boxplot Highest Value 25% of the data 3rd Quartile (75%) Median Mean 50% of the data 1st Quartile (25%) 25% of the data Lowest Value The Boxplot shows the range values and gives a simple picture of the variation Note the distribution in not symmetricalLSS Green Belt MEASURE v2.6 108 54 Boxplots for comparison Boxplots are frequently used to compare one distribution to another. They are especially useful for identifying differences in median, and spread as well as for highlighting the presence of outliers Boxplot of Normal, LSkew, LongTail, Flat, RSkew, Bimodal 100 80 What can we say about the following boxplots of airport queue time? Data 60 40 20 0 Normal LSkew LongTail Flat RSkew Bimodal 109 LSS Green Belt MEASURE v2.6 Using Boxplots Advantages • Provide a general indication of centre and spread Limitations • Can be misleading for data sets with less than 10 values • Identify potential outliers that are present • Ideal for comparing different groups of data Use Boxplots to: • Compare certain characteristics of the data • Plot continuous data or to compare a continuous Y for discrete x’s 110 LSS Green Belt MEASURE v2.6 55 Scatter Plot A Scatter Plot illustrates the relationship between two continuous variables. Components Scatterplot of Minutes vs Units 1. Vertical or Y-Axis 2. Horizontal or X-Axis: 3. Data Points 100 Minutes Tests the relationship between a continuous Y and a continuous x Displays the direction (as x increases, does Y increase or decrease?), shape (linear or nonlinear) and strength of the relationship 120 80 60 40 20 0 1 2 3 4 Units 5 6 7 8 111 LSS Green Belt MEASURE v2.6 Using a Scatter Plot Advantages  Show a relationship between two variables  Can be used for continuous data or discrete count data  Display the direction and strength of the relationship between two factors Limitations • Do not show the time order in which data was collected Use Scatter Plots to: • Examine how two continuous variables are related (indicate strength, shape and direction). 112 LSS Green Belt MEASURE v2.6 56 Summary of key learning points Understanding data basics: • Determine the data type. • Assess the shape, centre and spread of the data. • Assess normality • Create graphs for comparison. 113 LSS Green Belt MEASURE v2.6 Recommended coach support points When your data is not normally distributed Comparing sets of data with small sample sizes Drawing conclusions from your graphical analysis 114 LSS Green Belt MEASURE v2.6 57 MEASURE Measurement Systems Analysis Step 4: Assess measurement systems Value stream mapping C&E diagram Data types Sources of measurement variation Special and common cause Data collection planning Activity of the product C&E matrix Shape Planning an MSA Control charts Sample size Block diagrams FMEA Centre Operational definitions Calculating capability Sampling strategy Spread Conduct a discrete MSA Calculating stability Normality Analyse MSA results Detailed process maps Graphs for comparison 116 LSS Green Belt MEASURE v2.6 58 Preview of the lesson During this lesson we will cover the following basic concepts of: Why analysis of measurement systems is important Types of measurement system variation How to create an attribute study How to analyse the results 117 LSS Green Belt MEASURE v2.6 The additive nature of process and measurement variation True Process Variation + (s2 True Process ) What You Need to Understand to Improve Performance Measurement Variation (s2 Measurement ) What Masks Your Understanding of the True Process Variation = Total Variation (Observed) (s2 Total) What You See Through Your Measurements 118 LSS Green Belt MEASURE v2.6 59 Measure measurement variation first Why quantify measurement variation first? True Process Variation (s2 True Process ) What You Need to Understand to Improve Performance + Measurement Variation = (s2 Measurement ) What Masks Your Understanding of the True Process Variation Total Variation (Observed) (s2 Total) What You See Through Your Measurements Difficult to determine the real problem and its cause. Faulty measurement system produces data leading to bad decisions. Bad decisions waste time and money. 119 LSS Green Belt MEASURE v2.6 Total observed variation Observed variation is made up of two components. Which process: 1. Has the largest total observed variation? 2. Has the largest measurement variation? 3. Has the largest process variation? 4. If you were to choose which process was in better shape statistically, which one would you choose? Why? There are four sources of measurement system variation 120 LSS Green Belt MEASURE v2.6 60 Sources of measurement variation Measurement Variation Accuracy Precision Repeatability Reproducibility Stability Linearity 121 LSS Green Belt MEASURE v2.6 Definitions: Sources of measurement variation Accuracy Accuracy Centering of measurement data around a known standard Precision Repeatability Reproducibility Stability Linearity 150 100 True Value 50 Left Right It is a measurement of how close the average of multiple measurements of an event is equal to the true value. 122 LSS Green Belt MEASURE v2.6 61 Definitions: Sources of measurement variation, Continued Precision Accuracy Distribution of measurements around the average Precision Repeatability Reproducibility Stability 150 Linearity 100 True Value 50 Left Right Precision tells how clustered the individual measurements are around the target value. 123 LSS Green Belt MEASURE v2.6 Definitions: Sources of measurement variation, Continued Repeatability Accuracy …measures the extent to which the same person gets the same measurement results using the same measurement system. Precision Repeatability Reproducibility Stability Linearity To determine if someone can get the same measurements by using the same measurement system repeatedly, we collect data repeatedly. Since the event does not change, any change in the measurements must be due to changes in the measurement system. 124 LSS Green Belt MEASURE v2.6 62 Definitions: Sources of measurement variation, Continued Repeatability …measures the extent to which the same person gets the same measurement results using the same measurement system. Reproducibility …measures how several people or systems repeatedly measure the same event and we look for differences in the results among the people or systems. Accuracy Precision Repeatability Reproducibility Stability Linearity … quantifies the differences in results between the appraisers 125 LSS Green Belt MEASURE v2.6 Definitions: Sources of measurement variation, Continued Stability Accuracy ...is the capacity of your measurement system to produce the same measurement results over time when measuring the same event or item Precision Repeatability Reproducibility Stability Example The tendency of measurements to differ depending on the time of day or the length of time the appraiser is working or measuring. Linearity 126 LSS Green Belt MEASURE v2.6 63 Definitions: Sources of measurement variation, Continued Linearity Accuracy … measures how well your system maintains its performance over its range of measurement values (for continuous data) or measurement categories (for discrete data) Precision Examples Can a scale measure with the same accuracy and precision the weight of a mouse versus the weight of an elephant? Linearity Repeatability Reproducibility Stability Are we more prone to accuracy and precision issues when we evaluate applications with 10 fields versus applications with 100 fields? 127 LSS Green Belt MEASURE v2.6 Causes of measurement variation Draw on our personal work experience and as a class brainstorm five causes for poor: • • • Accuracy Repeatability Reproducibility Use flipchart paper and be prepared to present back Time - 20 minutes 128 LSS Green Belt MEASURE v2.6 64 What is Measurement Systems Analysis? Measurement System Analysis (MSA) is: An analytical procedure to determine how much of the total observed variation comes from your measurement system There are two different types of MSA: • Discrete • Continuous 129 LSS Green Belt MEASURE v2.6 Discrete MSA overview Outcomes • Measurement variation calculated in terms of accuracy, repeatability and reproducibility Limitations • Discrete measurements do not describe the extent to which an item falls in its category (e.g. how good or bad the item is) Common Findings • Problems with standards or operational definitions (vague, not understood or applied correctly by appraisers) Frequency of Use • More common than Continuous MSA 130 LSS Green Belt MEASURE v2.6 65 Continuous MSA overview Outcomes • Repeatability and Reproducibility Limitations • Not as applicable for service industry measurement systems Common Findings • Problems with the design of the measurement devices • Problems with the use of the measurement devices Frequency of Use • Less common than Discrete MSA particularly within an office environment 131 LSS Green Belt MEASURE v2.6 Recap class activity Instructions: Answer the following questions Time - 10 minutes Difference? 1. What term is used to characterise the difference between the true value (or standard) of a measured item and the average of its actual measurement results? 2. Which has better accuracy, the plot on the left or right? 3. Which has better precision, the plot on the left or right? True Value (or Standard) Average of its Actual Measurements 150 100 True Value 50 Left Right 132 LSS Green Belt MEASURE v2.6 66 Questions 4. Which source of measurement variation are we checking for in this example? 5. Which source of measurement variation are we checking for in this example? 133 LSS Green Belt MEASURE v2.6 The Discrete MSA procedure 1. Confirm the key discrete measures that require an MSA. 2. Confirm the operational definition for each measure. 3. Design the discrete MSA study. 4. Develop data-collection sheets for the discrete MSA study. 134 LSS Green Belt MEASURE v2.6 67 Confirm the measures that require an MSA Conducting an MSA procedure can be lengthy and resource-intensive. Therefore, the first step is to review the various measurement activities within your project/process and determine which ones truly require an MSA. Consider the following criteria: • Significant Risks: In other words, major costs or problems will occur if the measurements are subject to errors • High Levels of Measurement Error: Your observations and experience tell you that the measurement system is not at an acceptable level of accuracy, repeatability or reproducibility. 135 LSS Green Belt MEASURE v2.6 Operational definitions The operational definition describes: The measure being analysed The items that will be measured in the study The categorisations used for the measure How the standard for each item will be determined 136 LSS Green Belt MEASURE v2.6 68 Design the Discrete MSA study Key design considerations for a discrete MSA: The number and type of items to be measured • Recommend a minimum of 30 items • Try to distribute items equally among categories The number of appraisers • Typically three appraisers • Use more appraisers if issues of reproducibility are suspected The number of • Two is sufficient measurement trials The organisation • Randomise trials to prevent memorising of the • Avoid situations where appraisers may be measurement trials influenced 137 LSS Green Belt MEASURE v2.6 Develop data collection sheets for the Discrete MSA study Data collection sheets: Define the order in which the items will be presented to each appraiser Provide structure for the study Are used to record the actual measurement results during the study Are provided to each appraiser as separate sheets We’re now ready to conduct a study! 138 LSS Green Belt MEASURE v2.6 69 Conduct the Discrete MSA Study Key things to remember: Randomise the presentation order. Maintain consistent measurement methods. Code the entry results for discrete data to simplify data recording. Example: P = pass, F = fail 139 LSS Green Belt MEASURE v2.6 Discrete MSA Practice Activity The vowels exercise Objective: To illustrate the use of a discrete MSA 10 images will be displayed on the screen at the front of the classroom. As you view each image, determine whether the image passes or fails. A screen passes if it contains no vowels. It fails (is defective) if it contains a vowel. 30 mins Record your measurement results in the first trial column of the Data-Collection Sheet shown on the following slide. Record your findings quickly since a new image will be displayed on the screen every four seconds. After we complete the first trial, there will be a second trial, and you will record your answers on the following slide. The findings from some of the class will be used to asses the measurement system. 140 LSS Green Belt MEASURE v2.6 70 Data recording sheet 1 141 LSS Green Belt MEASURE v2.6 Data recording sheet 2 142 LSS Green Belt MEASURE v2.6 71 Data recording sheet - combined 143 LSS Green Belt MEASURE v2.6 The “Standard” 144 LSS Green Belt MEASURE v2.6 72 Analyse our discrete MSA results Our assessment of the measurement system should review the between (reproducibility) and within (repeatability) sources of variation. The following “rules of thumb” should be used when assessing the adequacy of our measurement system • % Study Variation Criteria:  Good: <10%  Marginal: 10% to 30%  Bad: >30% • Divide the points by the total number of observations. • Math Breakdown: 1 – (22/30) = 1 - .7333 = 0.2667 or 26.67% Study Variation. • How good is the MSA? What do we need to fix? 145 LSS Green Belt MEASURE v2.6 How did we do? From our 10 samples, how many did we get complete agreement (reproducibility and repeatability)? What is our measurement system variation? Improving the measurement system: 20 mins Identify and implement the appropriate solutions to reduce the level of measurement variation. Repeat the MSA study to validate the impact of any solutions to reduce the level of measurement variation. 146 LSS Green Belt MEASURE v2.6 73 Summary of key learning points Measurement variation can negatively impact your decision making. The sources of measurement variation: Accuracy Precision Repeatability Reproducibility Linearity Stability MSA is a procedure to quantify the level and source of measurement variation There are two different MSA procedures: Discrete MSA Continuous MSA 147 LSS Green Belt MEASURE v2.6 Recommended coach support points Designing the MSA Studies If you have continuous data Analysis and interpretation of results Diagnosis of root-level causes for excessive measurement variation 148 LSS Green Belt MEASURE v2.6 74 MEASURE Process stability and capability Step 5: Stability and capability Value stream mapping C&E diagram Data types Sources of measurement variation Special and common cause Sampling strategy Activity of the product C&E matrix Shape Planning an MSA Control charts Data collection planning Block diagrams FMEA Centre Operational definitions Calculating capability Sample size Spread Conduct a discrete MSA Calculating stability Normality Analyse MSA results Detailed process maps Graphs for comparison 150 LSS Green Belt MEASURE v2.6 75 Preview of the lesson In this module we will learn how to “Check” the stability of data before using it to assess the inherent performance of a process “Compare” the capability of process performance against the desired performance You’re at a point in DMAIC where you need an accurate and predictable base line measure of your problem by using the project metrics. The metric data needs to be assessed for its stability. If the data is influenced by special causes or unusual circumstances, your base line measure will be inaccurate. 151 LSS Green Belt MEASURE v2.6 Stability - Introduction What is process stability? Process stability is the ability of the process to perform in a predictable manner over time A project metric is stable when it varies in a predictable manner over time or is in a state of statistical control. In a Lean Six Sigma project, stability is determined by: Evaluating the project’s primary/secondary metrics in the Measure phase Managing the confirmed vital few inputs (x’s) of a process in the Control phase Stability is determined by examining whether common or special causes of variation are present. Stable processes experience only common causes of variation. Unstable processes experience special causes of variation. 152 LSS Green Belt MEASURE v2.6 76 Understanding Common and Special Causes of Variation Variation can be common cause or special cause. Common Causes of Variation (systematic, random, normal, in-control or expected, natural)  Are present in all processes  Are comprised of the variation inherent to the combination of all process elements (people, equipment, environment, methods and materials)  Produce random, predictable fluctuations in the x or project metrics over time When only common cause variation is present, the process is stable and predictable. Special Causes (abnormal, nonrandom, out-of-control or unexpected)  Are large or unusual differences in variation due to some “hiccup” in the process When special cause variation is present, the process is unstable and unpredictable. 153 LSS Green Belt MEASURE v2.6 The two causes of variation How you interpret variation … Common Cause Common Cause Special Cause Focus on step changes to processes Type 1 Tampering (increases variation) True variation type … Special Cause Type 2 Under-reacting Investigate causes 154 LSS Green Belt MEASURE v2.6 77 Introduction to Control Charts What are control charts and why are they useful? Display a project metric in the order it is collected over time Are used to determine whether a process measure is stable (in a state of statistical control) 155 LSS Green Belt MEASURE v2.6 The two categories of Control Charts Control Charts can be used for continuous or discrete data. Category Type of Charts Displays Continuous I-MR Individuals and Moving Range Xbar and R Xbar and Range Xbar and S Xbar and Standard Deviation P Proportion defective NP Number defective U Defects per unit C Number of defects Discrete 156 LSS Green Belt MEASURE v2.6 78 The components of a Control Chart All Control Charts have three components: Performance over time A centre line Control limits (LCL and UCL) Upper Control Limit (UCL) Data Points Over Time. Center Line Lower Control Limit (LCL) 157 LSS Green Belt MEASURE v2.6 Understanding Control Limits, Continued How control limits work: 0 .4 0 .3 0 .1 0 .2 0 .0 m-3s m-2s m-1s 68% 95% 99.73% m m+1s m+2s • We should expect to see all of our data points (99 to 100%) fall between the control limits with no patterns. • If a data point falls outside the limits, we detect patterns or both, these are signals of outof-control or special cause conditions. m+3s 158 LSS Green Belt MEASURE v2.6 79 Control limits are not specification limits Control limits should not be confused with specification limits: • Control limits represent the Voice of the Process (VOP). They tell you how the process is expected to perform when no special causes of variation are present. • Specification limits are the Voice of the Customer (VOC). They tell you what your customers (internal or external) want from the process. 159 LSS Green Belt MEASURE v2.6 The two indicators of a special cause of variation 1. Any point outside a control limit T I Chart for Answer 70 1 60 1 Individual Value UCL=56.18 50 40 Mean=30.91 30 20 10 LCL=5.640 0 0 50 100 150 Observation Number 160 LSS Green Belt MEASURE v2.6 80 The two indicators of a special cause of variation Continued 2. A non-random pattern of data points within the control limits Shifts A series of points above or below the centre line 0 10 20 30 40 Trends A series of data points that continuously increase or decrease 50 0 10 20 30 40 50 0 10 20 Cycling or Alternating Non-random patterns seen in the data points 0 10 20 30 40 50 30 40 50 161 LSS Green Belt MEASURE v2.6 Applications of Control Charting in DMAIC The two primary applications for Control Charts in DMAIC Phase Application Measure Phase • To assess the nature of the process variation – are the metrics’ performance over time stable? Control Phase • To control the vital few inputs (x’s) • Control Charts are an integral part of the control plan 162 LSS Green Belt MEASURE v2.6 81 Selecting the best control chart for the Measure Phase How do I choose the correct chart for my project? Questions to ask: Is my data discrete or continuous? If the data is discrete, do I want to monitor the number of defects or the number of defective items? Defect: A flaw (not meeting customer specifications) Defective: A product or service with one or more defect Control Charts used to assess stability of the primary metric Type of Data Measurement Chart Continuous Continuous Value I-MR Chart Discrete Defects C Chart Defective Items NP Chart 163 LSS Green Belt MEASURE v2.6 Structure of the Individuals and Moving Range Chart The Individuals-Moving Range (I-MR) Chart is comprised of two charts: Individuals Chart monitors the individual observations over time. Moving Range Chart monitors the change of the individual observations over time. Is this process stable or not? Why? What is the appropriate next step? 164 LSS Green Belt MEASURE v2.6 82 The C Chart The C Chart is used when your metric involves a count of the number of defects: Is this process stable or not? Why? What is the appropriate next step? 165 LSS Green Belt MEASURE v2.6 The NP Chart The NP Chart is used to plot the number of defective items/units for a constant subgroup size. Differs from the C Chart: • The C Chart plots the number of defects (flaws). • The NP Chart plots the number of defectives (an item or unit that contains one or more defects). Is this process stable or not? Why? What is the appropriate next step? 166 LSS Green Belt MEASURE v2.6 83 The importance of identifying special causes Special cause variation indicates a need to investigate: How you interpret variation … Points outside of the control limits Common Cause Trends Type 1 Common Focus on systemic Cause process change Shifts Cycles Special Cause Tampering (increases variation) True variation type … Special Cause Alternating patterns Type 2 Under-reacting Investigate special causes M-L5-37 Identify when the special cause occurred and identify the factors that contributed to it. Don’t quantify process capability before understanding whether the process is statistically stable. 167 LSS Green Belt MEASURE v2.6 Definition of Process Capability Process capability is the ability of a stable process to meet customer requirements. We can use capability analysis to compare the performance of very different processes. 168 LSS Green Belt MEASURE v2.6 84 Picturing capability A universal business metric that can be used to indicate the capability of the process (VOP) to meet an output specification (VOC) s1 Voice of the Process It is the number of standard deviations that can fit between the mean and the nearest specification USL LSL Performance that is outside of the specification is a “defect” – not meeting the customer specifications Voice of the Customer USL LSL LSL s1 USL Defects (Out of specification) Process Capability 169 LSS Green Belt MEASURE v2.6 The first measure of capability: Sigma Level Sigma Level is a measure of how well a process performs relative to its requirements. Sigma Level Yield Percent Defective 1 30.9% 69% The higher the Sigma Level, the more capable the process. 2 69.1% 31% 3 93.3% 6.7% The appropriate Sigma Level depends on the importance and cost of poor quality for the characteristic. 4 99.38% .62% 5 99.977% .023% 6 99.99966% .00034% The higher the sigma level, the more capable the process. The appropriate sigma level depends on the importance and cost of poor quality for the characteristic. 170 LSS Green Belt MEASURE v2.6 85 The second measure of capability: DPM We tend to use DPM when dealing with discrete measures of capability. The relationship between DPM and Sigma Level: Sigma Level DPM 1 691,462 2 308,538 3 66,807 4 6,210 5 233 6 3.4 DPM is the number of defectives in every million units. Note that it is “defectives per million” rather than “defects per million.” LSS Green Belt MEASURE v2.6 171 Calculating sigma with continuous data First we calculate the Z-score for the process, then add 1.5 sigma shift. The “+1.5” represents short-term and long-term views of the process. Average handle time = 50 seconds Standard deviation = 5 seconds Data is normally distributed. Customer requirement = 57 seconds. Average Handle Time Frequency 15 10 What is the sigma level for 57 seconds? 5 0 40 50 57 60 Z  Value of Interest  Mean Standard Deviation Z  1.5  Sigma Note that the z-score can only be used when we have a normal distribution, otherwise we need to use another distribution or DPMOLSS Green Belt MEASURE v2.6 172 86 The Sigma Calculator The Sigma calculator quickly determines the Sigma Level and DPM for your data. 173 LSS Green Belt MEASURE v2.6 Steps to calculate sigma level for continuous data Three Requirements 1. Data must be normally distributed. 2. The process must be stable. 3. You must have a valid measurement system. 174 LSS Green Belt MEASURE v2.6 87 Steps to calculate sigma level for continuous data Steps to use the Sigma Calculator for continuous data: 1. Enter the average (x bar). 2. Enter the standard deviation (s). 3. Enter the specification limits for the project metric. 4. The calculator displays these values automatically. 175 LSS Green Belt MEASURE v2.6 Calculating sigma with discrete data Defectives per million opportunities (DPMO) can be used to quantify capability for discrete output metrics DPMO = D X 1,000,000 N When: D= N= total number of defective units in the sample evaluated: a defective unit does not meet the customer specification Number of units evaluated 176 LSS Green Belt MEASURE v2.6 88 Steps to calculate sigma level and DPM for discrete data Steps to use the Sigma Calculator for discrete data: Calculating Sigma Level for Discrete Data Enter Number of Items Evaluated Enter Number of Defective Items This is your Sigma Level This is your Yield This is your DPM 1. Enter the number of items in the sample. 30 2 2. Enter the number of defective items. 3.00 93.33% 66,667 3. The calculator displays these values automatically. 177 LSS Green Belt MEASURE v2.6 Table exercise: Quantify process capability Capability Analysis Objective: Practise using the sigma calculator to calculate the sigma level and DPMO for the following examples: 1. Time to process mobile phone application: − Historical average is seven minutes (420 seconds) − Historical standard deviation is 1.5 minutes (90 seconds) − Upper specification limit is 10 minutes (600 seconds) − There is no lower specification limit Time - 5 mins 2. Percentage of transactions completed within seven minutes at banking centres: − Total number in sample = 1,000 transactions − # defective from sample = 73 transactions during 7 minutes 3. Lead time to issue orders: − Historical average is 20 days − Standard deviation is 10 days − Upper specification limit is 25 days − There is no lower specification limit 178 LSS Green Belt MEASURE v2.6 89 Summary of key learning points • Assessing the stability of the metrics using control charts driven by the type of data and the metric you want to control • Remove special causes but avoid tampering by reacting to common cause variation • Determining the capability of the process by reference to customer requirements USL LSL s1 Process Capability 179 LSS Green Belt MEASURE v2.6 Recommended coach support points Choosing the appropriate control chart Sampling strategy for control charts Analysis and interpretation of results Determining the best approach when continuous data is not normal Interpreting sigma level and DPM data relative to the goals for your project metrics 180 LSS Green Belt MEASURE v2.6 90 MEASURE Data collection and sampling Step 6: Collect data Value stream mapping C&E diagram Data types Sources of measurement variation Special and common cause Data collection planning Activity of the product C&E matrix Shape Planning an MSA Control charts Sample size Block diagrams FMEA Centre Operational definitions Calculating capability Sampling strategy Spread Conduct a discrete MSA Calculating stability Normality Analyse MSA results Detailed process maps Graphs for comparison 182 LSS Green Belt MEASURE v2.6 91 Preview of lesson A Lean Six Sigma project team working in a 24 hour car manufacturing facility has identified one of the project metrics as end-to-end lead time. The team wants to create a baseline measure for the metric before beginning its analysis. What decisions would the team need to make to ensure that the data it collects is useful and reliable? 183 LSS Green Belt MEASURE v2.6 Preview of lesson In this module we’ll discuss the need for data within Lean Six Sigma projects as well as: Determine what to measure Determine sample size Select the appropriate sampling strategy 184 LSS Green Belt MEASURE v2.6 92 Data collection overview The need for data Teams need data to speak with facts “In God we trust, everybody else brings data” Data is the “facts or figures from which conclusions can be drawn” Information collected about a product, service, process, person or machine is called data Data, when properly organised and analysed, provides useful information and serves as the basis of decision making and action 185 LSS Green Belt MEASURE v2.6 Data collection for hypothesis testing In addition to quantifying the process baseline, we gather data to hypothesize on the drivers of process performance (Y) Y= f(x1; x2; x3…..xn Examples include; Shift Time of Day Day of Week Week of Month Season of Year Employee Name Grade Training Experience Location on Unit Inside/Outside Left Side/Right Side Top Side/Bottom Side Leading Edge/Trailing Edge Orientation Temperature Humidity Valve Model # Instrument Tag # Equipment # Cable # Raceway # Design Revision # Supplier 186 LSS Green Belt MEASURE v2.6 93 Data Collection Error Process Step A Process Step B Process Step C Process Step D Factors Factors Factors Factors = Outcome x1 x2, x3 x4 x5, x6 = Y Customer Where did the error occur? (which process step) Could we have caught it before the customer “found” it? How much “wasted” effort did we spend working on the item that was erroneous? How much will this dissatisfaction cost us in the long term? The outcome is a function of the factors within the process 187 LSS Green Belt MEASURE v2.6 Components of a typical data collection plan 1 2 3 4 5 6 7 8 10 9 The Purpose for Collecting the Data The Data to Collect The Who, How, Where and When 1 The question(s) you want to answer 2 How/where recorded 5 How/where recorded? 3 Measure type/data type 4 Who will collect the data? 9 Strategies to eliminate bias 6 Related conditions to record 10 How the data will 7 Frequency/timing be displayed 8 Sampling notes 188 LSS Green Belt MEASURE v2.6 94 Finding the right data Hrs from receipt to delivery x3 Month y1 Start time x4 Available Hours x5 Stage in process (%, steps) x6 Team x7 Individual x8 % downtime x9 On time delivery Quality Score Processing errors # Errors Y x2 Day of Week Cycle time x1 y2 System Errors 189 LSS Green Belt MEASURE v2.6 Example completed data collection plan for contact centre PREPARED BY Jake Calc Purpose of Data Collection DATE CREATED Baseline credit card operation performance for service level, 1st call resolution, and handle times DATA What Measure Type / Data Type Who will collect data? How/where recorded? (attach form) Sampling Notes Related Frequency / (any conditions or conditions to Timing. How characteristics record ie. Time of often and at what about the sample Day, month, shift, intervals will the that should be location etc data be collected noted) % calls answered within Discrete: binary 30 seconds Jake C using automated system Excel report from Date and time automated Call volume system % first call resolution Sally S and Q&P Date and time Record results on Associate attached form Call type Call volume Sally S and Q&P Date and time Record results on Associate attached form Call type Call volume Discrete: binary Call handle time Continuous DATE REVISED 5/29/2006 Who, How, Where, and When How will you minimize bias? Random sampling will Randomly sample Sample 100 calls provide the 100 calls for every 2 hours representative each time period sample for this metric SMEs will Total sample size evaluate each of 369 stratified call. Prior to based on call evaluating, all type: Q&P will randomly SMEs will review 185 Balance record calls based the established Inquiry on VRU responses standard for 1st 111 Change of call resolution. address MSA will be 19 Drop terms performed for 56 Drop rate each SME Total sample size of 369 stratified based on call Stratfied random type: Will use the same sampling will 185 Balance samples for % first provide a Inquiry call resolution. representative 111 Change of sample address 19 Drop terms 56 Drop rate How will the data be displayed? What graphical tools will be utilized to summarize the data collected so it can be analyzed Data will be used for stability and capability studies Data will be used for baseline capability for secondary metric. Data can support pareto analysis Data will be used for baseline capability for secondary metric. Performace by call type and associate will be plotted using boxplots &/or dotplots 190 LSS Green Belt MEASURE v2.6 95 Sampling requirements There are two basic needs for data: Estimation • • • Your focus is to collect enough representative data to give you a “good” estimate of the parameters of the process. “Good” is defined by confidence level and margin of error. If historical data is not available, a data collection plan should be created to collect the appropriate data. The rest of this module deals with sampling for estimation. Hypothesis Testing • • • Your focus here is to collect data on the Y and different Xs to determine if there are differences in how the Xs affect the Y, or if different values or levels of an X affect the Y. Here again we need enough representative data to be able to prove the significance of the effects of the Xs. We will cover sampling for testing in the Analyse phase 191 LSS Green Belt MEASURE v2.6 How much data to collect Descriptive Statistics Characterises Shape Centre Spread Summarises Percentile Proportions Rankings Descriptive Statistics Sample Data Inf e Sta rent tist ial ics Population Data Inferential Statistics – typically used to infer information about populations from sample data 192 LSS Green Belt MEASURE v2.6 96 The concepts of populations and samples Population Sample Collection of measurements selected from the population Collection of all objects or individuals with at least one common characteristic 193 LSS Green Belt MEASURE v2.6 Population Parameters vs. Sample Statistics Population Data describing the whole of the population are known as PARAMETERS An entire group of objects that have been made or will be made containing a characteristic of interest. “Population Parameters”  = Population Mean Sample Data describing a sample of the data are known as STATISTICS The group of objects actually measured in a statistical study. “Sample Statistics” x= Sample Mean s = Population Standard Deviation s = Sample Standard Deviation  X s s 194 LSS Green Belt MEASURE v2.6 97 The value of sampling Why do Lean Six Sigma projects use samples instead of populations? Costs less to collect a sample than an entire population Requires less time to collect than a population Enables you to collect data when it is impossible or impractical to evaluate the entire population 195 LSS Green Belt MEASURE v2.6 Populations vs. Samples You are looking at the effectiveness of online orders and you have access to every online transaction for the last six months. Do you have a population or sample? Why? You need to estimate the average income of football season ticket holders in Glasgow, UK? What would be the population in this example? What would be a sample? Would you collect population or sample data? Why? 196 LSS Green Belt MEASURE v2.6 98 Sampling can be applied to populations and processes Sampling from populations A relatively fixed, static base Typical for surveys or baseline studies at one specific point in time Examples: registered voters and employee satisfaction surveys Sampling from processes A dynamic flowing base Typical for studies evaluating performance over time Examples: Sampling in-process applications to determine time it takes to perform a process step or sampling process bake time within a galvanising plant 197 LSS Green Belt MEASURE v2.6 Factors affecting sample size Four factors determine how much data is needed: Factor Effect Data Type Discrete data requires larger sample sizes than continuous data. Required Confidence Level The required sample size increases as the confidence level increases. Margin of Error The required sample size increases as the margin of error decreases. Variation in the Population or Process Variation has an impact on the sample size. The sample size increases as the variation increases. What factor might you think is missing? 198 LSS Green Belt MEASURE v2.6 99 Example for factors impacting sample size We have a survey measuring job satisfaction specifying a 95% confidence level and with a margin of error of ±3%. The survey results indicated an satisfaction rate of 65%. This means we have a 95% chance that the true population satisfaction rate falls between 62% and 68%. • What is the data type? • What type of sampling are we using (population or process)? 199 LSS Green Belt MEASURE v2.6 Using the sample size calculator Continuous Data 2 1. Select the Sample Size Continuous tab. 4 2. Enter the estimated standard deviation for the process or population. 3 5 3. Establish the acceptable margin of error for your sample. 4. Determine the required confidence level for your sample results. 5. Locate the sample size requirement for the confidence level and of error. 6. margin Determine if the sample size is feasible. 200 LSS Green Belt MEASURE v2.6 100 Using the sample size calculator, continued Discrete Data 2 4 3 5 1. Click the Sample Size Discrete tab. 2. Enter the estimated defective proportion for the population. 3. Establish the acceptable margin of error for your sample. 4. Determine the required confidence level for your sample results. 5. Locate the sample size requirement for the confidence level and margin of error. 6. Determine if the sample size is feasible, given project restraints. 201 LSS Green Belt MEASURE v2.6 Class activity: using the sample size calculator Sample size Objective: How to use the sample size calculator to quantify data collection efforts For the following two scenarios: Which type of data is being collected? How confident do you need to be? What is the margin of error? Time - 10 mins What is the estimated standard deviation for the process? What is the required sample size from the Sample Size Calculator? Scenario 1: You need to estimate the average call length in the call centre. Typical call length is from 30 seconds to three minutes. The standard deviation is 30 seconds. A confidence level of 95% is required. Scenario 2: You need to estimate the percent of calls in the call centre that were within the call-handling specification of three minutes. The estimate should be accurate within + or 2%. You believe that 90% of the calls meet the call handling specification. A confidence level of 95% is required. 202 LSS Green Belt MEASURE v2.6 101 Is sample size all that matters? The 1936 Presidential Election: The Story of Alf Landon Source Sample Size Predicted Winner Literary Review 2 million Alf Landon George Gallup 2,500 Franklin D. Roosevelt How could a sample of 2 million voters be less accurate than a sample of 2,500 voters? 203 LSS Green Belt MEASURE v2.6 The four methods to select your sample data Sampling strategies Sampling from a Population Random Sampling X Stratified Random Sampling X Systematic Sampling X Rational Subgrouping Sampling from a Process X X 204 LSS Green Belt MEASURE v2.6 102 Random Sampling Population Sample XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX Application Population sampling Advantages Easy to understand and explain Limitations Not an appropriate strategy for process sampling If there are segments within the population, they may not be represented in the random sample XXXXXXXXXX Every member in the population has an equal chance of being selected. 205 LSS Green Belt MEASURE v2.6 205 Stratified Random Sampling Population Type of Call Balance Inquiry Change of Address Units XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX Sample XXXXXXXXXX XXXXXX XXXXXXXXXX Application Advantages Drop Terms XXX Drop Rate XXXXXXXXXX XXXXX X XXXXX Limitations Population sampling All segments within the population are represented Not an appropriate strategy for process sampling Population is divided into distinct segments (or stratified layers) and then a random sample is taken within each segment 206 LSS Green Belt MEASURE v2.6 103 Systematic sampling Process XXXXXXXXXXXXX Sample Application Population or process sampling XX Sampling frequency is based upon a specified number of observations or units. For example, we will select every 5th survey for detailed review in a customer satisfaction survey Advantages Limitations Can maintain the time order of the data for process studies Easy to explain Potential for bias based on the systematic scheme. 207 LSS Green Belt MEASURE v2.6 Rational subgrouping Process Sub-grouping applies to how many samples we need to collect at each defined time interval (frequency). Application Process sampling (Statistical Process Control) Advantages Maintains the time order, so you can observe trends Provides insight as to sources of variation in the process Limitations More complicated to design and conduct the rational subgrouping sampling strategy 208 LSS Green Belt MEASURE v2.6 104 Class activity: sample strategy Sample strategy Objective: How to adapt how you select the calculated sample size based on the nature of the population In the slide that follows answer the questions posed and be prepared to share your thoughts with your classmates Time - 5 mins 209 LSS Green Belt MEASURE v2.6 Scenario: Sampling Strategy A call centre has had issues with meeting the customer requirements for speed of answering calls. The call centre team decided to take a sample of its calls to estimate the percentage of calls that were within the call handling specification of three minutes (primary metric) as well as the average call length (secondary metric). Four types of calls are handled by the call centre: Balance Inquiry (50%) Change of Address (30%) Drop Terms (5%) Drop Rate (15%) 1. 2. Which strategy would you recommend to collect the data? How would you change the strategy if the team is interested in how the call length performs over time? 210 LSS Green Belt MEASURE v2.6 105 Summary of key learning points Every piece of data, potentially costs time and money to collect, analyse and to store. It is important that the benefit of collecting data outweighs the cost Having a solid data collection plan is vital Collecting samples of data can save time and money We need to be aware of sampling risks and ensure these are considered when choosing sample size and sampling strategy 211 LSS Green Belt MEASURE v2.6 Recommended coach support points When determining the appropriate sample size when there is a small population size Calculating sample size when the current proportion defective is unknown Choosing your sampling strategy 212 LSS Green Belt MEASURE v2.6 106 Key points of the Measure phase Use mapping techniques to help understand the current process Identify potential root causes Understand the basics of data Baseline the performance of your the process relative to customer requirements Create and execute a data collection plan ready to move into the Analyse phase Ensure appropriate care is taken when calculating sample size and selecting sampling strategy 213 LSS Green Belt MEASURE v2.6 Lean Six Sigma simulation: Round 3 The coin simulation Objective: Use the tools covered in this module to prepare The current state value stream map for the process. Highlight the location of any potential opportunity area Re-run the simulation implementing 1 more change. 60 mins 214 LSS Green Belt MEASURE v2.6 107 ANALYSE Lean Six Sigma Green Belt Objectives of this module At the end of the module, you will be able to: Create a future state process map Quantify demand and capacity for the process Analyse the key equipment and activity constraints Perform correlation and regression analysis Understand basic hypothesis testing 2 LSS Green Belt ANALYZE v2.6 1 Analyse Phase overview Create the future state map Demand Activity of equipment Load and Balance Correlation Create hypothesis tests Prioritise improvement efforts Takt time Changeover analysis Pull systems Regression Alpha and Beta risks Capacity Visual Mgt Activity of staff Layout Interpret test results 3 LSS Green Belt ANALYZE v2.6 ANALYSE Future state value stream mapping 2 Future State VSM Create the future state map Demand Activity of equipment Load and Balance charts Correlation Create hypothesis tests Prioritise improvement efforts Capacity Changeover analysis Pull systems Regression Alpha and Beta risks Activity of staff Visual Management Interpret test results Layout 5 LSS Green Belt ANALYZE v2.6 Creating the future state Having mapped the existing process as part of the Measure phase we’re now going to create the future state Value Stream Map (VSM). A future state VSM should be made up of value-added activities that produce: What the customer wants How much the customer wants When they want it Where they want it A lean value stream has the shortest lead time, highest quality and lowest cost possible 6 LSS Green Belt ANALYZE v2.6 3 Approach Ideal state What does ideal look like? Future state How close can we get to ideal? Quick wins Current state What quick wins can we put in now? 7 LSS Green Belt ANALYZE v2.6 Ideal State VSM An ideal state value stream map is a theoretical process created free of any constraints on time, money or even current technical feasibility. So why create it? One of the principals of Lean is continuous improvement. The creation of an ideal state value stream map ensures, that after delivery of the project solutions, the Process Owner is challenged to strive closer to this vision avoiding stagnation. Creating the ideal map will also help those taking part to think in a creative and innovative way about how value could be delivered. 8 LSS Green Belt ANALYZE v2.6 4 Future State VSM The Future State VSM is created by tackling some of the problems currently faced by the Current State while aiming as close to the Ideal State VSM as possible. Future State 4 As we solve the problems of the current state, a number of iterations of future state could be created. The remaining sections of Analyse training is focused on finding the root causes of these issues so that solutions can be generated to reduce or eliminate these root causes. Future State 3 Future State 2 Future State 1 9 LSS Green Belt ANALYZE v2.6 Prioritising improvement efforts The amount of change required to move from the current state to future state is normally too great to be done in one step. Breaking the value stream up into project loops makes change more digestible. But where should we start? 10 LSS Green Belt ANALYZE v2.6 5 Prioritising improvement efforts, continued There is no prescribed rule for prioritising which loop should be worked on first but the following should be considered: Begin as close to the customer as possible so improvements are visible to the customer sooner Focus on the pacemaker process or cell, since this will set the pace to takt (see next module) for the full value stream Work on the processes within your control before branching out to suppliers and customers; your internal work may change requirements Learn as you go and apply what you learn; feel free to adjust the future state design as you learn more Ask which loop has the best chance of making the greatest improvement considering the customer and business? 11 LSS Green Belt ANALYZE v2.6 Quick Wins Just mapping the value stream alone may yield some obvious improvement opportunities. These opportunities are sometimes referred to as “low hanging fruit” or “quick wins”. Teams should be prepared to pursue these opportunities – the return on investment can be very high. Typical criteria for quick wins are: Easy to implement (no significant coordination or planning required) Easily reversed if not successful Fast to implement Cheap to implement Within the teams control 12 LSS Green Belt ANALYZE v2.6 6 Summary of key learning points Create an Ideal State to give the team something to aim for and avoid stagnation after the project solutions are implemented The Future State map is created based on what is realistically achievable by tackling the existing issues with the current process Create project loops to make the scale of change more digestible for the business and easier to manage for you Seek to identify and implement quick wins, you can get an early return on investment and start the momentum for change. 13 LSS Green Belt ANALYZE v2.6 ANALYSE Analyse time and work 7 Analyse time and work Create the future state map Demand Activity of equipment Load and Balance charts Correlation Prioritise improvement efforts Capacity Changeover analysis Pull systems Regression Activity of staff Visual Management Layout 15 LSS Green Belt ANALYZE v2.6 Preview of the lesson In this module we’ll discuss: Quantifying customer demand Takt time Quantifying capacity to meet demand Standard work 16 LSS Green Belt ANALYZE v2.6 8 Customer demand A customer demand requirement specifies: • What … • How much … • When … … your customer base requires • Where … 17 LSS Green Belt ANALYZE v2.6 There are three different types of demand Value demand is the type of demand process owners want placed on their processes. It’s what the process was set up to deliver. Examples include production orders in a manufacturing facility or customer deposits at a bank. Failure demand is considered “bad demand” as you want to minimise the resources spent dealing with it. Customer Complaints and many types of customer inbound calls represent significant investment by organisations to deal with this type of demand Moveable demand is demand that can be placed on an alternative process for the benefit of the business and/or customer. The growth in online customer servicing is a great example of how this area has grown When mapping processes be aware of the “hidden factory” – processes set up 18 to deal with errors in the standard process (failure demand). LSS Green Belt ANALYZE v2.6 9 Identifying types of customer demand For the following examples, identify the demand being placed on each process Classify the demand as: 1) value 2) failure or 3) moveable demand For the value and failure demand, identify opportunities to convert the demand to an alternative process that is more effective or efficient. 5 minutes 1. 2. 3. 4. 5. For each opportunity, describe how the customer and/or organisation handling the demand could benefit. Coffee/tea served at a staff restaurant Ordering a new mobile phone Logging a software fault Requesting a replacement credit card A quality inspection function at the end of a manufacturing line 19 LSS Green Belt ANALYZE v2.6 Quantifying demand Quantifying the demand on resources requires us to: Identify the different demands Create an operational definition of each demand and time interval Determine the size of the time interval between each demand measure Quantify how much data is to be gathered Collect the data 20 LSS Green Belt ANALYZE v2.6 10 Quantifying demand Customer demand is unlikely to occur in an even pattern. Understanding when peaks and troughs occur is important in the management of resource. We need an appropriate increment of time to acquire each demand measure An interval too large or too narrow hides the true pattern and variability of demand. Talk to people who work in the process, the Process Owner and your Coach to determine: - The current volume of demand - How demand varies over time - The size of a time interval (such as hours, days or weeks) to depict the variability in demand - The relationship of cycle time to customer lead time 21 LSS Green Belt ANALYZE v2.6 Determining how much data to gather We need to collect enough data to capture a minimum of one demand cycle. • Customer demand is often cyclical. • A demand cycle is the time before each pattern begins to repeat itself. Demand Cycles • Knowing whether the demand data occurs in cycles and the length of each cycle requires historical data and/or experience with the process and its past demand patterns. • If no historical data exists, talk to the Process Owner, process Subject Matter Experts (SMEs) and/or your Coach to decide on the 22 appropriate number of samples. LSS Green Belt ANALYZE v2.6 11 Demand volume is derived from historical data and forecast volumes Historical view Analysis of historical demand up to and including current demand Forecast Analysis of demand forecasts and any other factors which have arisen since publication of the forecast There is no guarantee that your estimate for demand will be accurate but taking a combination of historical and forecast demand volumes is a good place to start 23 LSS Green Belt ANALYZE v2.6 Takt Time Takt comes from the German word for rhythm. It can be thought of as the rate the process has to run at to keep up with customer demand. 24 LSS Green Belt ANALYZE v2.6 12 Takt Time (cont’d) We calculate the takt time as follows: Available Time Takt Time = Demand Requirement Available time to run the process doesn’t include breaks, lunch etc. It’s the amount of actual time available to produce output. In order to increase takt time (slow production rate), what could we do with breaks, lunch etc? Takt time does not account for variation in demand which may be caused by changes to: customer demand requirements the hours of operation 25 LSS Green Belt ANALYZE v2.6 Takt Time v Cycle Time We look to synchronise takt time and cycle time Cycle time is a rate measure quantifying how long a process step takes to produce one unit of output If the cycle time is: Then: Less than the Takt time Work is being completed faster than required. The waste of overproduction, inventory or waiting will occur. Greater than the Takt time The process is unable to meet the pace of customer demand. 26 LSS Green Belt ANALYZE v2.6 13 Takt time For the following example, 1. Calculate the takt time of the process 2. Calculate the process cycle time 3. Advise on next steps 5 minutes Work hours are 09:00 to 17:00 with one hour for lunch Customer demand is 200 units per day Output rate is 220 units per day 27 LSS Green Belt ANALYZE v2.6 Capacity Customer demand and process capacity should match like two pieces of a puzzle. • Customer Demand – Defines how much is needed Customer Demand Process Capacity • Process Capacity – Defines how many can be produced Once both are quantified, they are compared to acquire a baseline of how the capacity differs from the demand. 28 LSS Green Belt ANALYZE v2.6 14 Approaches to quantify capacity Capacity is expressed based on the degree to which resources are dedicated to the process. Processes with dedicated resources: Capacity is expressed in terms of the ability to process units in a given period of time (3,135 applications per day) Capacity is expressed for the process as a whole Processes with shared resources Capacity is expressed in terms of available time Capacity is expressed for a resource or resource group (Six operators working between 9:15 a.m. and 9:30 a.m. on Monday provide 90 minutes of capacity) 29 LSS Green Belt ANALYZE v2.6 Capacity with dedicated resources Is the average of the actual output levels of the product/service collected from the process per unit of time 8:00 9:00 10:00 11:00 12:00 1:00 2:00 Uses the same sampling approach as the Demand Analysis Is compared with the average demand level identified from the Demand Analysis 3:00 4:00 5:00 6:00 - 9:00 10:00 11:00 12:00 Monday Tuesday Wednesday Thursday Friday 110 109 111 105 117 114 109 112 107 115 112 110 107 116 112 115 114 117 113 109 103 109 109 112 113 109 110 110 116 113 107 117 Lunch 113 111 101 108 118 117 104 108 106 117 80 109 110 108 116 113 115 107 1:00 2:00 3:00 4:00 5:00 6:00 7:00 Capacity = 110.4 units per hour 30 LSS Green Belt ANALYZE v2.6 15 A process with shared resources The capacity is measured for each resource group: A resource group is an employee or piece of equipment (single or group) capable of performing similar work. The resource group’s capacity is its “ability to do work per interval of time.” • A Banking centre measures capacity in 15-minute increments • Capacity is the ability to perform “x” amount of teller work per 15-minute increment. Tellers Present 9:00 9:15 9:30 9:45 10:00 10:15 10:30 10:45 11:00 11:15 11:30 11:45 - 9:15 9:30 9:45 10:00 10:15 10:30 10:45 11:00 11:15 11:30 11:45 12:00 5 5 5 5 5 5 5 5 5 5 5 5 Tellers on Break Tellers at Station Time Interval 5 X 15 min. 5 X 15 min. 5 X 15 min. 1 4 X 15 min. 2 3 X 15 min. 2 3 X 15 min. 5 X 15 min. 5 X 15 min. 5 X 15 min. 5 X 15 min. 5 X 15 min. 5 X 15 min. LSS Green Belt ANALYZE v2.6 Teller Capacity = = = = = = = = = = = = 31 75 75 75 60 45 45 75 75 75 75 75 75 The four strategies to balance demand and capacity There are four general strategies to balance the demand and capacity of a process: • A Provide strategy • A Match strategy • An Influence strategy • A Control strategy You need to determine which strategy, if any, is used for your process. Keep in mind that a combination may be used. 32 LSS Green Belt ANALYZE v2.6 16 The Provide Strategy Provide sufficient capacity at all times to meet peak demand. • Sets the capacity equal to the peak demand • Assumes enough capacity is available to meet demand PROVIDE Capacity Strategy Relative Demand 6000 5000 4000 Demand 3000 Capacity 2000 1000 0 1 2 3 4 5 6 Time Periods 33 LSS Green Belt ANALYZE v2.6 The Match Strategy Anticipate the expected demand to match capacity to demand. • Sometimes possible with employees • Is difficult to accomplish with equipment and facilities MATCH Capacity Strategy Relative Demand 6000 5000 4000 Demand 3000 Capacity 2000 1000 0 1 2 3 4 5 6 Time Periods 34 LSS Green Belt ANALYZE v2.6 17 The Influence Strategy Attempts to influence customer demand patterns to obtain a good utilisation of resources. • Influences demand by moving demand from the highest demand period to the lowest • Influences lowest demand by having fixed hours of operation • Reduces the amount of demand variation INFLUENCE Capacity Strategy Relative Demand 6000 5000 4000 Demand 3000 Capacity 2000 1000 0 1 2 3 4 5 6 Time Periods 35 LSS Green Belt ANALYZE v2.6 The Control Strategy Sets capacity to equal the average demand. • Uses some means of accommodating (controlling) excess demand until capacity is available • Uses queues to accommodate excess demand CONTROL Capacity Strategy Relative Demand 6000 5000 4000 Demand 3000 Capacity 2000 1000 0 1 2 3 4 5 6 Time Periods 36 LSS Green Belt ANALYZE v2.6 18 Activity of the Staff (AoS) Activity of the staff studies require us to 1. Optimise the activity of staff engaged in process steps that will remain in the future state process 2. Identify and standardise the one and best way to complete activities 3. Define the activity of staff on new process steps introduced by the future state design 37 LSS Green Belt ANALYZE v2.6 Optimise the activity of staff (AoS) for the Current-State Process Steps in the Future-State Product Flow An activity of staff worksheet can be used to: Identify each work element Time each work element Categorise activities for each element Work element Categorise Times 38 LSS Green Belt ANALYZE v2.6 19 How AoS studies are conducted AoS studies are comprised of five steps: 1. Identify those employees to participate in the study 2. Determine the number of cycles and the sampling strategy for the study 3. Prepare a data collection plan to acquire the activity times for each step 4. Conduct the study and complete the AoS worksheet 5. Determine the baseline measures of non-value-adding time the employee experiences. We will look at steps 1 and 4 in more detail. 39 LSS Green Belt ANALYZE v2.6 How AoS studies are conducted, continued Step 1: Identify the employees to participate in the study. • Identify the staff position/group performing the step. • Include a representative sample of the best, average and poorest performing employees. • All employees may have best practices that can be carried forward. • Secure any approvals to observe the employees. • Communicate the purpose of the study to the affected employees. 40 LSS Green Belt ANALYZE v2.6 20 How AoS studies are conducted (Cont.) Step 4: Conduct the study. • Capture all work elements that comprise the process step • A work element is the smallest increment of work that can be transferred from one person to another. • The level of detail for the activities depends on the cycle time for the step. • A step with a cycle time of minutes will have activities defined in seconds. • You may encounter “foreign activities” during the study. • Foreign activities are not part of the designed work for the process step (employee adjusts their glasses, equipment failures, etc.). They are special cause variation. • They should be captured in the study. 41 LSS Green Belt ANALYZE v2.6 The primary methods to acquire the AoS data The data for the AoS worksheet can be acquired by: • Videotaping the employees performing the process • Observing the process in-person, using a stopwatch to acquire the time data • Having employees self-record the AoS data 42 LSS Green Belt ANALYZE v2.6 21 Stacked bar – current state Creating a single stack of time ordered activities from the Activity of Staff worksheet immediately provides a visual on potential opportunities for improvement This stacked bar chart illustrates employee work elements within a correspondence process 43 LSS Green Belt ANALYZE v2.6 The definition and importance of standard work Standard work is defined as: An agreed-upon set of work procedures that establish the best, most reliable methods and sequence for each step and employee in the process. • Standard Work reduces variation in how work is performed • Standard Work alone does not result in “work standardisation” • Standard Work provides … • A foundation for continual improvement • A common process language among all employees 44 LSS Green Belt ANALYZE v2.6 22 Use mock-ups to define employee activity in new process steps A mock-up is: A model of a proposed process step or activity in a controlled environment. Mock-ups are used to: Test and improve the design of a process step in a safe environment Enable the acquisition of cycle time data for a process step Use mock-ups when: The process step is new The sequence of the process steps is new The risk employed with the new process step is high 45 LSS Green Belt ANALYZE v2.6 Stacked bar – optimised Implementing standardised work processes, delivering mail directly to the correspondence team significantly reduced employee activity 46 LSS Green Belt ANALYZE v2.6 23 Summary of key learning points Demand analysis is used to quantify the pull on resources from the customer Takt sets the rate at which output should be produced to keep up with customer demand Capacity is the volume of staff or equipment available to meet demand Conduct an Activity of Staff (AoS) study to identify opportunities to improve and standardise work content 47 LSS Green Belt ANALYZE v2.6 Recommended coach support points Quantify the length of a demand cycle Quantifying sample size for AoS studies Quantifying capacity for processes with shared resources 48 LSS Green Belt ANALYZE v2.6 24 ANALYSE Equipment Analysis Equipment Analysis Create the future state map Demand Activity of equipment Load and Balance charts Correlation Create hypothesis tests Prioritise improvement efforts Capacity Changeover analysis Pull systems Regression Alpha and Beta risks Activity of staff Visual Management Interpret test results Layout 50 LSS Green Belt ANALYZE v2.6 25 Lesson objectives At the end of this module, you will be able to: Identify and classify the equipment in the process that requires an Activity of the Equipment (AoE) study Conduct and analyse an AoE study Apply the ICE (Identify, Convert and Eliminate) method to reduce equipment changeover time in a process Develop standard work for the use of process equipment Select and apply the appropriate equipment optimisation strategy to reduce the cycle time of an equipment activity 51 LSS Green Belt ANALYZE v2.6 Activity of the Equipment (AoE) Equipment activities, like employee activities, include waste. The tools and procedures in this section will help you identify and eliminate equipment waste Equipment waste is important to eliminate because it: • Results in lost employee time/costs, including injuries • Prevents you from meeting customer demand without heroic employee efforts • Creates defective products, leading to inspections • Generates a need to process in batches versus one-piece flow • Builds up WIP inventory • Frustrates employees and customers 52 LSS Green Belt ANALYZE v2.6 26 Identify the equipment within the process that require analysis There are three general types of equipment in a process. 1. Equipment dedicated to one employee performing: • One/multiple steps in a process • Steps in many processes (A personal laptop or a telephone) 2. Equipment shared among multiple employees performing: • One/multiple steps in a process (A shared copier, fax machine) • Steps in many processes (Shredding equipment, a shrink wrapping machine) 3. Equipment where the customer is the operator. • For example, petrol pump, cash machines and telephone IVRs 53 LSS Green Belt ANALYZE v2.6 How to determine which equipment to analyse • Identify the equipment using the Value Stream Map • For each piece of equipment ask: • “If the equipment was unavailable for any reason, would it impact the ability of the process to produce the desired results?” • “Does this equipment affect the ability of the process to meet its Takt time?” • “Does the equipment negatively affect the customers in the process?” An AoE study is recommended if you answer “yes” to any question 54 LSS Green Belt ANALYZE v2.6 27 Conduct an Activity of the Equipment (AoE) study for the selected equipment AoE studies typically require the help of equipment SMEs. • Most project team members lack detailed knowledge of the equipment in the process. • The employees who operate the equipment daily are ideal SMEs. • Be sure to review their roles/responsibilities as a SME. • Include their managers in any discussions of roles and responsibilities. 55 LSS Green Belt ANALYZE v2.6 The general activities of the equipment in a process There are 10 general equipment activities that are observed and timed during an AoE study 56 LSS Green Belt ANALYZE v2.6 28 The structure of the AoE template The AoE Analysis Worksheet has the same structure as the AoS worksheet 57 LSS Green Belt ANALYZE v2.6 The structure of the AoE template Like staff studies, AoE studies should be planned carefully and executed well. 1. Plan the AoE study with equipment operators/experts 2. Develop the data collection strategy for the AoE study 3. Analyse the AoE study to identify waste in the usage of equipment. Identify the root causes of the waste 4. Optimise the use of the equipment at process steps 5. Develop standard work for use of the equipment 58 LSS Green Belt ANALYZE v2.6 29 How to identify equipment monuments in a process A process monument is: A resource that serves more than one process step that cannot be moved or decentralised due to cost, environmental or control issues • Monuments can be equipment, facilities, organisations or employees. • Monuments occur when: • Many process steps feed into one resource • One resource feeds many process steps • You often have to work around a monument in the short-term until a longer-term solution is created. 59 LSS Green Belt ANALYZE v2.6 How are your tyre changing skills? Assume one day next week you get a flat tyre during your drive home from work. From the time you stop your car on the shoulder of the road, how long will it be before you are on the road again? 60 LSS Green Belt ANALYZE v2.6 30 How the ICE method is used to reduce equipment changeover time Identify, Convert and Eliminate (ICE) is a method to reduce the changeover time for a piece of equipment. 61 LSS Green Belt ANALYZE v2.6 Table exercise: ICE Objective: Understand the practical application of the ICE method Think of a process from your organisation in which the changeover from one product or service is important. Time - 15 mins Why is it important? What are the high level steps and could any of these benefit from the ICE method? 62 LSS Green Belt ANALYZE v2.6 31 Other equipment optimisation strategies The Lean equipment philosophy is simple: Equipment should be available to run when needed, but should be run only when needed ICE Preventative Maintenance Pull Systems There are six key strategies to support the Lean equipment philosophy Equipment Optimization Six Sigma Improvement Methods Downtime Logs Poka-Yoke Some businesses believe it is wasteful to have idle equipment (even when there is no customer demand)! 63 LSS Green Belt ANALYZE v2.6 Summary of key learning points An AoE study is used to quantify the level of equipment waste If a monument exists in the process, plan to work around it in the short term until a longer-term solution is created. ICE is a method that converts set-up and changeover activity to reduce equipment downtime ICE is one of six methods used to get the most out of equipment within the process 64 LSS Green Belt ANALYZE v2.6 32 Recommended coach support points Quantifying sample sizes in AoE study Working with monuments in a process Further information on other strategies to optimise the use of equipment. 65 LSS Green Belt ANALYZE v2.6 ANALYSE Refine the Future State VSM 33 Refine the Future State VSM Create the future state map Demand Activity of equipment Load and Balance Correlation Create hypothesis tests Prioritise improvement efforts Takt time Changeover analysis Pull systems Regression Alpha and Beta risks Capacity Visual Mgt Activity of staff Layout Interpret test results 67 LSS Green Belt ANALYZE v2.6 Preview of the lesson After completing this lesson, you will be able to: • Use Load Charts and Balance Charts to balance the cycle times of the process steps • Design a pull system to flow the product continuously through the process steps • Determine where and how visual management methods should be applied in the future-state process • Develop a conceptual design of the physical layout of the futurestate process 68 LSS Green Belt ANALYZE v2.6 34 How to refine the initial process design to achieve continuous flow A major focus of Lean is the design of a continuous flow system for the process. • The continuous flow system is the conductor of the process. • It connects the “white space” between process steps, ensuring that all steps work in unison. • A well-designed system: • Hinders the creation of waste in a process (since the majority occurs in the white space) • Minimises interruptions to the flow of the product White Space – a Primary Source of Waste • Reduces the time to complete the product 69 LSS Green Belt ANALYZE v2.6 Balance the standard work content of the future-state process Work content balancing is: A method to compare and adjust the cycle times of the individual steps in a process so that the cycle times of all steps: 1. are similar and 2. fall just below the Takt time for the process •Balancing is performed after you have optimised the design of the process steps in the “Activity of ” studies 70 LSS Green Belt ANALYZE v2.6 35 Factors to consider when structuring the standard work content There are many strategies to structure the work content within a process. Two car manufacturers illustrate the extremes: Henry Ford’s Approach Narrowly structure the work content to produce a car • Thousands of employees were involved in the production of a car Volvo’s Approach Broadly structure the work content • At one time, Volvo employed a production model using a team of 10 employees to build a car What are some of the advantages and disadvantages of each approach? 71 LSS Green Belt ANALYZE v2.6 Factors to consider when structuring the standard work content Factor Does the work … Geographical/ Environmental Need to be performed at certain physical sites or controlled environments? Vocational Require unique employee skills? Lead Time Need to be performed in parallel or around the clock to reduce lead or cycle time? Equipment Have unique equipment requirements? Risk Mitigation Need to be performed by different employees for a “check and balance” within the process Training Allow for efficient new employee ramp-up? Job Enrichment Need to increase or decrease to mitigate employee turnover? 72 LSS Green Belt ANALYZE v2.6 36 How to estimate the number of employees required for the process The number of people required for a process can be estimated once the Standard Work content has been defined: Number of people required = Sum of the work content Takt time * Round up to the next whole number. How work is assigned to these employees will depend on the work structure and the extent to which the cycle times balance for the process steps. 73 LSS Green Belt ANALYZE v2.6 How Load Charts are used and constructed A Load Chart depicts the extent to which the process steps cycle time balances to takt time. 74 LSS Green Belt ANALYZE v2.6 37 How balance charts are used and constructed A Balance Chart is used to analyse and “balance” the work content at the activity level of a process. • The Balance Chart uses time data at the activity level for each process step. • Activity-level data is needed to shift the work content among the process steps • The activity cycle times are added to arrive at a step-level cycle time. 75 LSS Green Belt ANALYZE v2.6 How balance charts are used and constructed (Cont.) 76 LSS Green Belt ANALYZE v2.6 38 How the charts are constructed for process steps with multiple employees A five-step process has a Takt time of 12 minutes and the cycle times below. 77 LSS Green Belt ANALYZE v2.6 How the charts are constructed for process steps with multiple employees (Cont.) The Load Chart should display the overall cycle time of the work content at each process step. 23 minutes at Step 2 Load Chart 30.0 25.0 2 Time 20.0 15.0 1 1 10.0 1 1 5.0 0.0 11.5 23.0 11.0 11.3 10.7 Step 1 Step 2 Step 3 Step 4 Step 5 Process Steps 78 LSS Green Belt ANALYZE v2.6 39 How the charts are constructed for process steps with multiple employees (Cont.) The Balance Chart should display the work content assigned to each employee at each process step. 11.5 minutes for employees A and B at Step 2 Balance Chart 12.5 Time 12.0 11.5 11.0 11.5 11.5 11.5 11.3 10.5 11.0 10.7 10.0 Record issue Research issue Research issue Make correction Process Steps Report back to customer Document issue/resolution 79 LSS Green Belt ANALYZE v2.6 How the charts are used for process steps with equipment resources Apply the following rules for process steps with equipment resources. Use the: To display: Load Chart The overall cycle time for each process step. The cycle time includes the equipment’s run time and the time to complete any employee-performed tasks while the equipment is not running. Balance Chart The equipment and employees as separate resources. This will show the elements constituting the cycle time of:  The equipment and how it compares to the Takt time  The employee operating the equipment and how it compares to the Takt time 80 LSS Green Belt ANALYZE v2.6 40 Design the Pull System to flow the product through the process steps As a general rule, “Flow when you can, batch when you must.” Batching One-Piece Flow Batching might be required when: • • • • The design of any materials, supplies or equipment hinder one-piece processing The product is easier to process (or monitor) in batches. The movement of one product at a time is cost or time prohibitive The suppliers of an input cannot deliver the input when needed to achieve onepiece flow at the consuming process step • The software used in the process automatically batches the product and changes to the software are not possible 81 LSS Green Belt ANALYZE v2.6 How pull systems work Pull systems use signals to control when a product (or batch) is processed at each step in a process. • Pure pull systems are used for commodity items such as cash in the ATM channel Upstream Step 1 • In-process pull systems are used to control the work flow of unique items such as loan applications Step 2 Step 3 Product Flow Pull Signal Step 4 Downstream 82 LSS Green Belt ANALYZE v2.6 41 The rules of a pull system The employees or equipment at a process step should work only when: Signal • A signal to work is received from the downstream step • There is product to work on from the upstream step Input Process Step Output Input Status Process Status Output Status Not Open Cannot Work Not Open Open Cannot Work Not Open Open Cannot Work Open Not Open Work Open In all other circumstances, the employees and equipment at the step remain idle. The signals are usually visual cues such as signs, cards, flags, level indicators and electronic messages. These signals are known as Kanban 83 LSS Green Belt ANALYZE v2.6 The process characteristics that maximize the value of a Pull System A pull system is best applied to a process that is: • Reliable. Dependable equipment, a flexible, multi-skilled workforce and no delays due to materials movement • Organised. Well-structured with minimal physical travel for the product • Repeatable. Work content performed consistently, with clearly defined and understood Standard Work • Balanced. Cycle times of steps are balanced within Takt time. Lot sizes are small; ideally, the process uses one-piece flow Pull systems are most easily applied to high volume, repetitive processes. They can be applied to one-of-a-kind processes (such as software or new product development). 84 LSS Green Belt ANALYZE v2.6 42 The concept of Standard Work in Process (SWIP) Standard Work in Process (SWIP) is: SWIP is usually required because: • It may not be possible to perfectly balance all steps • The cycle times of the process steps will always vary • Monuments can exist in some future-state designs • Customer demand will vary • Supplier delivery performance can vary 85 LSS Green Belt ANALYZE v2.6 The different approaches to determine the SWIP quantity The trial and error approach. • You perform a root cause analysis of the WIP at each step: • Every piece of inventory exists for a reason (some are valid; most are not). • Most processes suffer from too much (rather than too little) WIP. • Begin with the average WIP level at the step. Repeatedly ask, “Why does this exist?” • You determine a reasonable starting WIP for a trial and error process. • You slowly remove (or add) WIP to the process step until the process flows continuously and efficiently. 86 LSS Green Belt ANALYZE v2.6 43 The different approaches to determine the SWIP quantity (Cont.) An alternative approach is to calculate the cycle stock and safety stock requirements using statistical methods. • The SWIP quantity is calculated using the following formula: • SWIP Inventory = Cycle Stock Inventory + Safety Stock Inventory Cycle Stock How much I need to meet demand at the process step Safety Stock How much extra I want to cover variation 87 LSS Green Belt ANALYZE v2.6 Visual Management Visual management systems create the visibility to operate and manage the process. • They display vital process information so you can see what’s happening allowing you to: • Respond to issues rapidly • Avoid wasting time and energy trying to figure out things • They control or guide the actions in the process to prevent errors or mistakes from occurring. 88 LSS Green Belt ANALYZE v2.6 44 Where Visual Management systems are normally applied Visual management systems are used to display. 1. Important status and failure messages to employees and customers 2. Vital information about the performance of the process (or process step) 3. Who is trained (or has demonstrated the ability) to complete the steps, activities or tasks in the process 4. Samples of items with defects (or prototypes of items that are processed correctly) 5. The Standard Work for a process step 89 LSS Green Belt ANALYZE v2.6 The scope of Visual Management design activities in the Analyse Phase You create a conceptual design of any visual displays or controls for the process. A conceptual design is a sketch or written description of the system and how it would work. • The visual management systems will be evaluated as part of the pilot test in the Improve phase: • Simple displays/controls will be developed as designed. • More complicated, costly displays/controls will be mocked up. 90 LSS Green Belt ANALYZE v2.6 45 Layout for the future-state process A process layout is: The arrangement of the materials, equipment and employees (such as their workstations) used within a specific process L L M M L L M M L L M M L L A A A A D D D D G G G G G G 91 LSS Green Belt ANALYZE v2.6 When process layouts are important Layouts are very important in physical processes. • Depicting the layout helps minimise: • The transportation of the product from one process step to the next • Movement of materials, people and equipment within each process step • Depicting the layout helps optimise the ability for employees to: • Share information • Assist each other 92 LSS Green Belt ANALYZE v2.6 46 When process layouts are important, continued Layouts are less important in virtual processes. • A layout of a virtual process is usually not required. • It may be impractical to rearrange (or co-locate) the employees or equipment in a virtual process. • The VSM and the “Activity of ___” studies depict the movement of the product in a virtual process. • You may need to define the location of any centralised electronic files in the process to facilitate employee access. 93 LSS Green Belt ANALYZE v2.6 The types of process layouts: Process-Oriented A layout in which the employees and equipment performing the same process steps are grouped together. Each group is usually organised as a separate department having different managers and separate performance metrics. Step 3 Step 1 Step 5 Step 6 What are the advantages and disadvantages of using a process layout? Step 2 Step 4 Process-Oriented Layout 94 LSS Green Belt ANALYZE v2.6 47 The types of process layouts: Product-Oriented (Work Cell) A layout in which the employees and equipment performing the process steps are co-located into an end-to-end continuous workflow called a work cell. S1 Each group is usually organised as a separate department having different managers and separate performance metrics. S2 S1 S2 S3 S1 Work Cell 1 S2 S3 S4 S6 S3 Work Cell 4 S4 S6 S5 S1 S2 S4 S6 S5 S1 S2 S3 Work Cell 2 S3 Work Cell 5 S4 S5 S6 S5 S1 S2 S4 S6 S5 S1 S2 S3 What are the advantages and disadvantages of using a work cell? Work Cell 3 S3 Work Cell 6 S4 S6 S5 S4 S6 S5 Product-Oriented Layout 95 LSS Green Belt ANALYZE v2.6 Other types of process layouts Office Layout • Designed to maximize the utilisation of space while providing employees with cubicles for some level of privacy and quiet. Retail Layout • Organises a sales and service area to respond to or drive specific customer behaviors. • Banking Centres and grocery stores are examples. Warehouse Layout • Optimises the usage of space, while minimising the effort to store and retrieve the materials. • Examples are storerooms. Fixed Position Layout • The product stays in one location. The employees in the process, and supplies move to the product. • Examples are the construction of a building. 96 LSS Green Belt ANALYZE v2.6 48 When to organise the process layout in a work cell Work cells are the preferred layout for processes that produce a single product or product family. • Each cell initially may process a narrow range of highly similar products. Over time, the products may be broadened. • Work cells are self-contained with all necessary equipment and resources. • There are five work cell configurations: 1. 2. 3. 4. 5. U-Shaped (employees on outside) U-Shaped (employees on inside) Straight Line L-Shaped Converging Line 97 LSS Green Belt ANALYZE v2.6 Summary of key learning points Refine your initial future state value stream design so that product flows from one end of your VSM to the other in a smooth uninterrupted flow The use of Load and Balance charts help you balance takt with work content and resourcing requirements Pull systems ensure you minimise over-production and should be included in future state design where possible Visual Management guides the actions in the process to prevent errors or mistakes from occurring. Layout is important to minimise the transportation/movement of employees, equipment and product 98 LSS Green Belt ANALYZE v2.6 49 Recommended coach support points Creating pull systems Calculating SWIP Designing your layout 99 LSS Green Belt ANALYZE v2.6 ANALYSE Correlation and regression 50 Correlation and Regression Create the future state map Demand Activity of equipment Load and Balance charts Correlation Create hypothesis tests Prioritise improvement efforts Capacity Changeover analysis Pull systems Regression Alpha and Beta risks Activity of staff Interpret test results Visual Management Layout 101 LSS Green Belt ANALYZE v2.6 Preview of the lesson After completing this lesson, you’ll be able to: Use a Scatter Plot to assess the shape, strength, direction and presence of outliers for a relationship between a continuous x and a Y Understand how predictive equations for a continuous x and a Y using simple linear regression are created 102 LSS Green Belt ANALYZE v2.6 51 The purpose of correlation and regression analysis in the Analyse Phase Correlation and regression analysis are used to confirm the significance of continuous x’s: Potential Vital Few Input (x) (from the Measure phase) • Correlation analysis and regression analysis are used when the Y is continuous. Continuous Discrete Logistic regression analysis is used when the Y is discrete. Discrete Discrete Hypothesis Testing Logistic Regression Continuous • Project Y The method used depends on the type of data for the Y: Continuous Hypothesis Testing Correlation and Regression 103 LSS Green Belt ANALYZE v2.6 The basic principles/approach of correlation analysis Correlation analysis is a method to evaluate a potential relationship between a continuous input (x) and a Y. • The relationship is depicted graphically through a Scatter Plot • Limitations of using correlation analysis: - Does not provide a predictive equation - Does not confirm causality 60 50 40 60 70 80 104 LSS Green Belt ANALYZE v2.6 52 How scatter plots are used Scatter plots are used to evaluate the direction of a potential relationship: • As the x increases, what happens to the Y? Positive Relationship No Relationship 55 54 53 52 51 50 49 48 47 46 45 60 50 40 46.5 47.5 48.5 49.5 50.5 51.5 52.5 53.5 60 70 80 Negative Relationship 60 50 40 60 70 80 105 LSS Green Belt ANALYZE v2.6 How scatter plots are used, Continued Scatter plots are used to depict the shape of a relationship: • What shape best describes the relationship between the x and the Y? 106 LSS Green Belt ANALYZE v2.6 53 How Scatter Plots are Used, Continued Scatter plots are used to depict the strength of a relationship: • How tightly grouped are the data points along the shape? 107 LSS Green Belt ANALYZE v2.6 How Scatter Plots are Used, Continued Scatter plots are used to identify suspicious outliers • Are there any data points that do not fit the shape suggested by a majority of the data? 108 LSS Green Belt ANALYZE v2.6 54 Table exercise: using Scatter Plots Objective: Interpretation of scatter plots Review the Scatter Plot below to determine the relationship between volume of calls answered (x) and wait time (Y). Time - 5 mins What conclusions can be reached regarding the direction, shape and strength of the relationship? Are there outliers? • Direction • Shape • Strength • Suspicious Outliers _________________ _________________ _________________ _________________ 109 LSS Green Belt ANALYZE v2.6 Regression What is Regression Analysis? • Develops a mathematical equation to quantify the relationship. • Enables you to predict the Y based on the value of the input (x). • The model includes a Coefficient of Determination (R2): • Expresses the percentage of total variation in the Y that can be explained by the changes in the input (x) • Regression analysis, like correlation, cannot prove causality 110 LSS Green Belt ANALYZE v2.6 55 How and when regression analysis is used, Continued An example of a mathematical model: • You can develop a predictive equation for the total amount of change in your pocket: • The Y is the dollar amount of change you have in your pocket. • The x’s are the coins (quarters, dimes, nickels and pennies). The predictive equation: • Y (total $) = 0.25 x (number of quarters) + 0.10 x (number of dimes) + 0.05 x (number of nickels) + 0.01 x (number of pennies) • R2 = 100% What would happen to R2 if you did not include the pennies? How about the quarters? 111 LSS Green Belt ANALYZE v2.6 The types of regression analysis There are three types of regression analysis: Method: Used to develop a predictive equation for: Simple Linear Regression One continuous Y variable and one continuous x variable. Multiple Linear Regression One continuous Y variable and multiple (more than one) continuous x variables. Logistic Regression Discrete Y variables. 112 LSS Green Belt ANALYZE v2.6 56 Interpreting the simple linear regression analysis Minitab will create a line of best fit through the collected data to create a predictive equation, allowing you to estimate the Y for a given value of x 113 LSS Green Belt ANALYZE v2.6 How to apply the predictive equation From the previous slide, assume call volume was on average 4,900. You can use the regression equation to estimate the wait time: Wait Time = -37.2 + 0.0214 x Average call volume • Wait Time = -37.2 + 0.0214 x 4,900 • Wait Time = -37.2 + 0.0214 x 4,900 = 67.66 If your goal is to reduce the average wait time to less than 68 seconds, the average call volume should be kept as low as possible and no higher than 4,900 calls. What things should management consider before taking action? 114 LSS Green Belt ANALYZE v2.6 57 How to apply the predictive equation (Cont’d) The management team now can consider: • Is it possible to achieve this reduction in calls? • Does the cost of reducing call volume to achieve this improvement justify the benefit? • Is there a true causal relationship between typing speed and handle time? 115 LSS Green Belt ANALYZE v2.6 Summary of key learning points Use correlation to understand the direction, shape and strength of a relationship between a continuous x and continuous y Regression analysis creates a predictive equation to quantify this relationship 116 LSS Green Belt ANALYZE v2.6 58 Recommended coach support points Reviewing your planned testing strategy Reviewing the Correlation results What to do if you have more than one continuous x What to do if your Y is discrete 117 LSS Green Belt ANALYZE v2.6 ANALYSE Hypothesis testing 59 Preview of the lesson After completing this lesson, you will be able to: • Describe the two primary applications of hypothesis testing in all Lean Six Sigma project types • Prepare null and alternative hypothesis statements to confirm the impact of a discrete x upon a project Y • Explain how the p-value is used to reach a statistical conclusion for all hypothesis tests 119 LSS Green Belt ANALYZE v2.6 Hypothesis testing Create the future state map Demand Activity of equipment Load and Balance charts Correlation Create hypothesis tests Prioritise improvement efforts Capacity Changeover analysis Pull systems Regression Alpha and Beta risks Activity of staff Visual Management Interpret test results Layout 120 LSS Green Belt ANALYZE v2.6 60 Approaches to Problem Solving The Typical Approach The Six Sigma Approach Business Problem Business Problem Statistical Problem Business Solution Business Conclusion Statistical Conclusion 121 LSS Green Belt ANALYZE v2.6 Approaches to Problem Solving. Continued Data is collected on the Average Handling Time (AHT) for two teams within a call centre: • Team 1 average AHT = 4.12 minutes • Team 2 average AHT = 5.12 minutes What conclusion(s) would you make from this data? 122 LSS Green Belt ANALYZE v2.6 61 Approaches to Problem Solving, Continued Uncertainty must be factored into every decision making process: • Average values alone, when generated from sample data, do not take into account uncertainty • Uncertainty for a given sample average is a function of: • The variation that exists in the data • The sample size • Measurement system variation 123 LSS Green Belt ANALYZE v2.6 Approaches to Problem Solving, Continued What is a confidence interval? • The estimated range, which is likely to include an unknown population parameter, with a specified level of confidence. • A 95% level of confidence is used for most Green Belt projects • Confidence intervals get: • Smaller as the sample size increases and/or the sample variation decreases • Larger as the sample size decreases and/or the sample variation increases 124 LSS Green Belt ANALYZE v2.6 62 Approaches to Problem Solving, Continued The 95% confidence intervals for both call centre teams: 5.8 AHT (minutes) 5.5 5.1 4.8 Intervals ‘overlap’ overlap’ 4.5 4.4 Team 2 AHT = 4.4 to 5.8 minutes 4.1 3.5 Team 1 AHT = 3.4 to 4.8 minutes 3.4 Team 1 Team 2 Team 125 LSS Green Belt ANALYZE v2.6 The concept of hypothesis testing What is hypothesis testing? – Hypothesis testing is a process that enables you to statistically evaluate differences by: • Converting a business problem into a statistical problem • Performing the appropriate test to generate the statistical conclusion. – This provides us with process focused and data driven business conclusions. 126 LSS Green Belt ANALYZE v2.6 63 The concept of hypothesis testing, Continued Hypothesis testing is used to confirm the significance of discrete x’s: Continuous Hypothesis Tests:  Unequal Variances  Test Mean  Two-Sample t  Means/Anova/Pooled t  Means/Anova  Median Test Discrete Continuous Discrete Different statistical tests are used based on what you are testing Potential Vital Few Input (x) (from the Measure phase) Discrete Hypothesis Testing Logistic Regression Continuous • The Y can be continuous or discrete (but the x is discrete) Project Y • Discrete Hypothesis Tests:  Test Probabilities (1 Proportion)  Contingency (2 or more Proportions) Continuous Hypothesis Testing Correlation and Regression 127 LSS Green Belt ANALYZE v2.6 The prerequisites to conduct a hypothesis test A well-defined business problem is required to conduct a hypothesis test: The components of a business problem • The purpose of the test • The Y for the test • The x for the test Business Problem Statistical Problem Business Conclusion Statistical Conclusion 128 LSS Green Belt ANALYZE v2.6 64 The prerequisites to conduct a hypothesis test, continued Assume that a Lean Six Sigma team is working to reduce the percentage of calls that were answered after 30 seconds: • • The C&E matrix identified “call centre location” as a potential vital input (x) How the team defined the business problem: – The purpose of the test: To determine if the call centre location is a vital input (x) for the Y – The Y measurement: The proportion of calls that are not answered within 30 seconds – The x measurement: The call centre location 129 LSS Green Belt ANALYZE v2.6 The concept of null and alternative hypotheses Statistical problems are divided into two opposing statements, theories or claims: The… States… Null Hypothesis (H0) Changes in the (x) produce no difference in the Y • There is no change. • This is often the opposite of what you hope to prove through hypothesis testing Alternative Hypothesis (HA) Changes in the (x) make a difference on the Y • There is a change. • An “alternative” to null • The alternative hypothesis is not unequivocally proven 130 LSS Green Belt ANALYZE v2.6 65 How null and alternative hypotheses are recorded Hypothesis statements are recorded in a mathematical format. They include: A notation of the population parameter being tested: Population Parameter Notation Mean  (mu) Variance 2 (sigma squared) Median  (eta) Proportion p A mathematical symbol for the claim to be tested: Claim of Hypothesis Symbol Used No difference = Difference with 1 or 2 groups ≠, <, or > Difference with more than 2 groups At least 1 group is different 131 LSS Green Belt ANALYZE v2.6 How null and alternative hypotheses are recorded, Continued The null and alternative hypothesis statements for the call centre example: H0: PGlasgow = PEdinburgh = PDundee = PAberdeen = PInverness HA: At least one location is different 132 LSS Green Belt ANALYZE v2.6 66 Stating Null and Alternative Hypotheses Assume your team is trying to reduce the time to complete orders. Two potential vital few inputs were identified: 1. The customer entry method to the process. – Internet – Call centre – Store 2. Order approval type. – Pre-approved order Time - 20 mins – Standard processing order Record the statistical problem for each x through statements of the null and alternative hypotheses. 133 LSS Green Belt ANALYZE v2.6 Example Hypotheses Hypotheses for Means (CT = cycletime) Ho: CTA = CTB Ho: CTA = Target Ha: CTA  CTB Ha: CTA > CTB Ha: CTA < CTB Hypotheses for Variance Ho: 2After = 2Before Hypotheses for Medians Ho: MDayshift = MNightshift Ho: MDayshift = Target Ha: MDayshift  MNightshift Ha: MDayshift > MNightshift Ha: MDayshift < Mnightshift Hypotheses for Proportions (e.g. defect rates) Ho: 2After = Target Ho: pMon = pTues = pWed= pThurs= pFri Ha: 2After  2Before Ha: At least one px is different. Ha: 2After > 2Before Ha: 2After < 2Before 134 LSS Green Belt ANALYZE v2.6 67 State the decision criteria The Two Risks of Hypothesis Testing Alpha () and Beta () risk explained: Conclusion H0 HA  risk H0 Correct Decision Type I Error HA  risk Type II Error Correct Decision Truth 135 LSS Green Belt ANALYZE v2.6  Risk The  risk or risk of making a Type I Error, is the probability that we could be wrong in saying that two or more things are different, when in fact, they are the same It is an assessment of the likelihood that the observed difference could have occurred by random chance.  is the primary decision-making benchmark of most statistical tests. In the our legal system, the defendant is assumed to be innocent until proven guilty. In the statistical system, two populations are assumed to be the same until proven different. The “legal  risk” is the risk that an innocent person could have been convicted of a crime. 136 LSS Green Belt ANALYZE v2.6 68  Risk Examples of Type 1 errors (alpha risk): • Concluding Distribution Centre A had longer average cycle times than Distribution B, when in reality they have the same average cycle time • Concluding that a Black Belt project successfully reduced cycle time variance, when in reality it did not • Fire alarm going off when there is no fire – finding a difference when none exists Typically  = 0.05 or 5% 137 LSS Green Belt ANALYZE v2.6  Risk The  risk or risk of making a Type II Error, is the probability that we could be wrong in saying that two or more things are the same when, in fact, they are different  risks are not typically computed directly by statistical tests The “legal  risk” is the risk that a guilty person could have been acquitted of a crime and set free. 138 LSS Green Belt ANALYZE v2.6 69  Risk - continued Examples of Type II errors: • Concluding no difference exists between dayshift and nightshift median call response time, when in reality a significant difference does exist • Concluding error rates are same every day of the week, when in reality error rates on Mondays are less than the other four days of the week • Fire alarm doesn’t go off when it should Typically  = 0.10 or 10% Power = 1 -  139 LSS Green Belt ANALYZE v2.6 Stating the decision criteria As a table team, discuss the impact of  and  errors on the successful completion of your project. Answer the questions below: Time - 20 mins What problems, costs or frustrations would your team experience if it made: • an  error when confirming the vital few inputs? • a  error when confirming the vital few inputs? Brainstorm the potential impact of the two risks and record them on flip chart paper. Each group are to present their results to the class. 140 LSS Green Belt ANALYZE v2.6 70 Establish d Delta (d) also known as Precision, is the practical significant difference that you want to detect in your hypothesis test. Examples: • Detecting average cycle time differences of 10 minutes has been determined to be of practical significance • Detecting an error rate difference of 5% has been determined to be of practical significance d 141 LSS Green Belt ANALYZE v2.6 Data collection plan guidelines for hypothesis testing The data collection plan for your hypothesis test should define: • What data will be collected and when it will be collected • How much data should be collected • Where the data should be collected • Who will collect the data 142 LSS Green Belt ANALYZE v2.6 71 Data collection plan guidelines for hypothesis testing Unlike sampling for estimation (covered in the Measure module), sampling for hypothesis testing includes consideration of  risk Sample size will depend on: • Hypothesis test selected • How Ha is defined • Choice of  risk (Typically 5%) • Choice of  risk (statistical software will often ask for power) • Power = 1-  ( is typically 10%) • Choice of d (known as “difference” in Minitab) • Other parameters (such as the sample standard deviation for a ttest) 143 LSS Green Belt ANALYZE v2.6 The role of the p-value in reaching a statistical conclusion The p-value and the stated decision criteria form the basis for the statistical conclusion • The p-value represents the probability that the null hypothesis is true (that is, there is no change in the Y as we observe change in the x) • Since the p-value is a probability, values will be between 0 and 1 • p-values and statistical conclusions: If the p-value is … Then the statistical conclusion is to … Less than  Reject the null hypothesis and accept the alternative. You are concluding a statistically significant difference. Hence, the x being tested is a vital input. (Typically  = 0.05) Greater than  Fail to reject the null hypothesis. You are concluding that there is no statistically significant difference. Hence, the x being tested is not a vital input. If the p-value is low, the null must go. If the p-value is high, the null must apply. 144 LSS Green Belt ANALYZE v2.6 72 Hypothesis testing roadmap Let’s explore the ‘Hypothesis Testing Roadmap’ in the ‘Student Data Files’ package 145 LSS Green Belt ANALYZE v2.6 Conducting statistical tests Review underlying assumptions of a given hypothesis test; verify all are satisfied • For example, before performing a test for equal variance, first carry out normality tests on all samples Calculate test statistic and critical value with Minitab If Minitab is not used: • Calculate the appropriate test statistic. (e.g., t-value, F-value or Chi-Square value) • Determine the critical value for the test statistic. (e.g., based on sample size and  risk look up tcritical in a t-table) 146 LSS Green Belt ANALYZE v2.6 73 When statistical software is used to apply the hypothesis test The sample data for the call centre example: • The x – Call centre location • Y – Proportion of calls not answered in 30 seconds • The test selected – Chi-Square • The sample data: 147 LSS Green Belt ANALYZE v2.6 Using statistical software to apply the hypothesis test The p-value indicates a difference. But which call centre or centres are different? 148 LSS Green Belt ANALYZE v2.6 74 Develop statistical conclusions, continued If statistical software is not used, compare the test statistic to the appropriate value in a statistical table as follows: • If test statistic > critical value, reject the null hypothesis • If test statistic < critical value, fail to reject the null hypothesis 149 LSS Green Belt ANALYZE v2.6 Develop statistical conclusions, continued Examples: The p-value for the 2-sample t-test of average cycle time at distribution centres A and B was 0.01. Since p < 0.05, we reject the null hypothesis and conclude that average cycle times are different at the different distribution centres The p-value for the F-test of cycle time variance before and after a Black Belt project was completed was 0.78. Since p > 0.05, we fail to reject the null hypothesis and are unable to conclude that the Black Belt project had a significant impact 150 LSS Green Belt ANALYZE v2.6 75 The concept of an actionable x Your confirmed vital few inputs (x’s) must be recorded at an actionable level of detail: • Knowing that Glasgow appears to be better and Aberdeen appears to be worse than others is valuable but inadequate information to define a solution to the problem. • Call centre location is not an actionable input. – Actionable x’s are at a level of detail to define an appropriate control or solution for the x • For the x to be actionable, you need to know: – What does Glasgow do (or not do) to influence their performance? – What does Aberdeen do (or not do) to influence their performance? 151 LSS Green Belt ANALYZE v2.6 Summary of key learning points Every hypothesis test involves a comparison and conclusion to be drawn Null and alternative statements are used to create the hypothesis There are risks associated with statistical tests which need to be understood The selection of hypothesis test to be used requires a full understanding of the question to be answered and nature of data available An alpha risk of 0.05 and beta risk of 0.10 are normally used in hypothesis tests Statistical software is normally used to calculate the hypothesis test statistics 152 LSS Green Belt ANALYZE v2.6 76 Recommended coach support points When reviewing your planned testing strategy Determining confidence level and appropriate sample size for the test Running the test using statistical software Confirming the statistical and business conclusion from your analysis 153 LSS Green Belt ANALYZE v2.6 77 IMPROVE Lean Six Sigma Green Belt Objectives of this module At the end of the module, you will be able to: Use techniques to generate solutions to business problems Test solutions Prepare an initial control plan Prepare the implementation and communication plans 2 LSS Green Belt IMPROVE v2.6 1 4 step approach 1 2 3 4 Brainstorming Detailed physical layout Create initial control plan Implementation plan Benchmarking Piloting Mistake proofing Communication plan DoE Visual Management Assumption busting 5S Force field analysis Pugh matrix 3 LSS Green Belt IMPROVE v2.6 IMPROVE Generate and select solutions 2 Generate and test solutions Brainstorming Detailed physical layout Create initial control plan Implementation plan Benchmarking Piloting Mistake proofing Communication plan DoE Visual Management Assumption busting 5S Force field analysis Pugh matrix 5 LSS Green Belt IMPROVE v2.6 Preview of the lesson After completing this lesson, you will be able to: Explain how Brainstorming, Benchmarking, Famous Faces, Assumption Busting and Force Field analysis are used to generate solutions Select and apply the appropriate method to generate one or more potential solutions for your project Describe the three primary factors to evaluate the feasibility of a potential solution: Technical Impact, Cost and Organisational Acceptance Construct a Pugh Matrix to select the best solution to test 6 LSS Green Belt IMPROVE v2.6 3 Solution generation begins with the right people You’ve confirmed your root causes in the Analyse phase and are ready to identify potential solutions. What people would you include in your solution-generation activities and why? Be sure to: 1. Identify and include the appropriate SMEs for the high-level process 2. Avoid psychological inertia among the participants when generating solutions 7 LSS Green Belt IMPROVE v2.6 Overview of Brainstorming Brainstorming is a collaborative approach for generating a large number of potential solutions: • Benefits – Allows open and creative thinking – Encourages team member participation – Generates solutions quickly • Requirements – A skilled facilitator – Works best in groups of 8 to 12 people who have diverse perspectives 8 LSS Green Belt IMPROVE v2.6 4 Brainstorming Ask Question For Brainstorming to be effective – a frame of reference is needed. This can often be a simple question; Eg. How can we grow existing revenues? How can we reduce staff costs? Capture initial ideas Let people have time to generate some ideas on their own. When it looks like things have slowed down, gather the ideas on a flip chart Loosely Affinitise Read out the ideas and start to make some form of grouping. You could let the team do this. Let any additional ideas be forthcoming Clarify ideas When it looks like there are no more ideas, read through the ideas and clarify – practice “appreciative enquiry” – do not give your own opinion – ask how it relates to the initial question In scope/ out of scope Finally the ideas need to be sorted into those that are to be taken forward or those that may be eliminated 9 LSS Green Belt IMPROVE v2.6 Overview of Benchmarking Benchmarking is a process for: • Identifying best-in-class practices/ standards • Within or outside your organisation • Comparing your internal practices • Improving the performance of a similar activity 10 LSS Green Belt IMPROVE v2.6 5 Overview of Benchmarking, Continued The two types of benchmarking: • Performance Benchmarking – A search to determine what are the “best performance results” Types of Benchmarking Performance Benchmarking • Process Benchmarking: Process Benchmarking – A search to determine how “best practice” organisations provide their products and services 11 LSS Green Belt IMPROVE v2.6 How Benchmarking works Benchmarking occurs in three phases: Preparing for the Study Conducting the Study • Defining scope of the study • Developing the interview guide • Planning your approach • Collecting information using the interview guide • Locating and securing partners Learning from the Study Findings • Interpreting the information acquired • Applying what was learned into a solution 12 LSS Green Belt IMPROVE v2.6 6 Famous faces Start with a clearly defined issue or problem to generate ideas against Provide any supporting facts and figures as necessary Write the problems statement on a flipchart Place some face cards facedown then ask the team to select one Ask how would “.........” think about this problem? When ideas dry up move onto the next card Generate as many possible solutions as possible Have fun! 13 LSS Green Belt IMPROVE v2.6 Assumption Busting 1. List assumptions - Look at the situation you are in. • Think about what assumptions you are making? • What seems obvious, so much so that you would not think about challenging it? • Think about cost & time, and identify where it is assumed impossible to do something because of these constraints • Think about where something works as a result of certain rules or conditions • Think about the things that people perceive, believe, think or need • Think about whether it is a need or a want 14 LSS Green Belt IMPROVE v2.6 7 Assumption Busting, Continued 2. Challenge assumptions – take an approach where all assumptions can probably be challenged and overcome at some time. • Ask how could this be flipped so that it is no longer true or a constraint? • Ask what would it be like if we could do it significantly better – or if it took half the time? 3. Find ways of making the challenge the new reality • Take each assumption where it was identified that something could be done, and find ways to make it happen. 15 LSS Green Belt IMPROVE v2.6 Force Field Analysis List out the Forces for Change List out the Forces against Change Saves cost Less training required Employee satisfaction Quicker cycle times Redundancy expenses Redundancies Limited number of queries can be raised More responsive No human contact Increases auditing capability 1. 2. 3. 4. 5. Limited audit scope First list out the Forces for Change on post its on the left hand side of a flip chart / white board / wall List out all the Forces against Change Align the For vs Against Look for any gaps, especially where there is no “for” where an “against” exists and identify where what could be done to counter that force. When communicating the results it can be useful to show the impact / strength of a force (for or against) by varying the size of the arrow. Relative positioning (horizontal) can also be used to show the probability of the force being realised. 16 LSS Green Belt IMPROVE v2.6 8 What separates the best from the rest? You’ve confirmed your x’s in the Analyse phase and identified multiple solution alternatives so far in the Improve phase. • What factors would you use to separate the “best” solutions from the others? 17 LSS Green Belt IMPROVE v2.6 Factors to consider when evaluating solutions The technical impact of a solution: • Defines the extent to which a solution produces a positive change in the project’s metric(s): And therefore achieves the chartered goal for the metric(s) 18 LSS Green Belt IMPROVE v2.6 9 Factors to consider when evaluating solutions The cost of a solution: • The true cost of a solution will include its: • Design costs • Development costs • Implementation costs • Operating/sustaining costs • Sun-setting costs 19 LSS Green Belt IMPROVE v2.6 Factors to consider when evaluating solutions The level of organisational acceptance for a solution: • Describes the extent to which the project’s key stakeholders will adopt or support the solution: • Focuses on the stakeholders who are identified in the Project Risk Assessment • Considers how the solution relates to other projects/initiatives 20 LSS Green Belt IMPROVE v2.6 10 Overview of the Pugh Matrix The Pugh matrix is a tool to identify which potential solutions are more important or “better” than others. How it works: • Compares all identified solutions to the weighted criteria to identify the best solution Benefits: • Facilitates the comparison of multiple solutions • Helps you arrive at an optimum solution that could be a hybrid of the other solutions 21 LSS Green Belt IMPROVE v2.6 How to construct the Pugh Matrix Step 1: Confirm the evaluation criteria to use for the solutions. • At a minimum, use Technical Impact, Cost and Organisational Acceptance. • Add other criteria, if necessary. • Record the evaluation criteria in the first column of each row. 22 LSS Green Belt IMPROVE v2.6 11 How to construct the Pugh Matrix Step 2: Assign an “Importance Rating” to each criterion. • Rate the importance of each criterion using a scale from 1 to 5, with 5 having the greatest importance 23 LSS Green Belt IMPROVE v2.6 How to construct the Pugh Matrix Step 3: Select the initial “best solution” as the datum. • Record a description in the “datum” column 24 LSS Green Belt IMPROVE v2.6 12 How to construct the Pugh Matrix Step 4: Use the evaluation criteria to compare each solution against the datum. Assign the appropriate comparison rating. • Record the alternative solutions in the first row of the remaining columns • Compare each solution against the datum using the evaluation criteria. • Rate the solution as: – Better than (+) the datum – The same (S) as the datum – Worse than (-) the datum • Rate the datum with an (S) for each criterion. 25 LSS Green Belt IMPROVE v2.6 How to construct the Pugh Matrix Step 5: Score each solution. The Pugh Matrix template will automatically score the solutions based on your input • Calculate the “Sum of” ratings – Record the number of (+) ratings for in the “Sum of +’s” row – Record the number of (-) ratings in the “Sum of –‘s” row – Record the number of (S) ratings in the “Sum of Sames” Row • Calculate the “Weighted Sum of” ratings – Add the “importance ratings” for all (+) ratings assigned to the solution. – Add the “importance ratings” for all (-) ratings assigned to the solution. 26 LSS Green Belt IMPROVE v2.6 13 How to construct the Pugh Matrix Step 6: Select the best solution. • The “best” solution from the Pugh matrix is the one with: – The most pluses and the least minuses – The highest weighted sum of pluses and the lowest weighted sum of minuses 27 LSS Green Belt IMPROVE v2.6 How to construct the Pugh Matrix Step 7: Improve the best solution by incorporating the superior features or characteristics of the remaining solutions. • Your "best" solution may have (-) ratings for some criterion. – (-) ratings indicate the potential to make the "best" solution even better. • Examine other solutions in the matrix with (+) ratings for these criterion • Review the features of these solutions that led to its (+) rating • Synthesising these features with your best solution. 28 LSS Green Belt IMPROVE v2.6 14 An example of the Pugh Matrix Evaluating potential solutions for a family holiday 29 LSS Green Belt IMPROVE v2.6 Constructing a Pugh Matrix Pugh Matrix Objective: To practise use of the Pugh matrix in selecting solutions As a table team, use the Pugh Matrix to identify the best solution to deliver Lean Six Sigma training to Green Belt candidates Use the potential solutions and evaluation criteria below as a starting point Feel free to add other criteria as needed Time - 20 minutes Be prepared to discuss your results You have identified the following potential solutions: • Web-based training • Printed, self-instructional materials • Instructor-led training using Web meeting • Videotaped sessions Your team also has identified the following criteria to evaluate the solutions: • The cost of the training • The time to complete the training • Each participant’s ability to apply the training content to his or her project • Each participant’s ability to apply successfully the content to his or her daily work activities • Each participant’s ability to ask questions 30 LSS Green Belt IMPROVE v2.6 15 Summary of key learning points There are multiple different ways to generate solutions, the key is to generate as many as possible and throw the bad ones away A Pugh matrix can be used to choose between alternative options 31 LSS Green Belt IMPROVE v2.6 Recommended coach support points Be sure to engage your coach when Planning any type idea generation session Analysing the results of a Pugh Matrix 32 LSS Green Belt IMPROVE v2.6 16 IMPROVE Test selected solutions Test selected solutions Brainstorming Detailed physical layout Create initial control plan Implementation plan Benchmarking Piloting Mistake proofing Communication plan DoE Visual Management Assumption busting 5S Force field analysis Pugh matrix 34 LSS Green Belt IMPROVE v2.6 17 Preview of the lesson At the end of this lesson you will be able to: • Find sources of help to prepare a detailed physical layout of a process • Construct a detailed layout for any process steps where the product flows physically • Evaluate your detailed physical layout • Identify the stakeholders to review your detailed physical layout • Conduct a stakeholder review of your detailed physical layout • Pilot and validate the new solutions as part of the physical layout 35 LSS Green Belt IMPROVE v2.6 Importance of the lesson A well-designed, detailed physical layout of the process is necessary for two reasons: • The layout impacts the flow of the product and the amount of waste in a process. • The detailed layout provides the information to transition to the new layout for the pilot test. 36 LSS Green Belt IMPROVE v2.6 18 When the step is performed A detailed physical layout is necessary when: Your future-state process design: Requires a change in the physical arrangement of staff, equipment or materials at one or more process steps. Your conceptual layout from the Analyse phase: and Lacks the information or detail to guide the appropriate staff in deploying the change. The layout can be limited to the process steps where changes are required. 37 LSS Green Belt IMPROVE v2.6 The key inputs to begin the step Any site drawings or blueprints for the facility or work area Any governmental regulations/requirements that must be considered in developing the layout 38 LSS Green Belt IMPROVE v2.6 19 The software to use when preparing the layout Several software applications are available to speed the process of a generating a detailed layout. Microsoft Visio Computer-Aided Design (CAD) software such as AutoCAD Microsoft PowerPoint or Excel 39 LSS Green Belt IMPROVE v2.6 The indicators of a good physical layout A well-designed, physical layout will: • • • • • • • Promote a continuous product flow Promote the visual management systems Minimise waste Protect the health and safety of staff Maintain the security of information used Optimise the use of the workspace Be flexible to address changing demand levels and product/process changes • Accommodate the processing of rework without impacting the flow of the product • Incorporate the principles of 5S 40 LSS Green Belt IMPROVE v2.6 20 The indicators of a good physical layout, continued The 5S Audit Worksheet lists a series of assessment criteria of each of the 5S categories. 41 LSS Green Belt IMPROVE v2.6 The indicators of a good physical layout, continued The 5S Audit Worksheet lists a series of assessment criteria of each of the 5S categories. • The worksheet is used primarily in an audit context for an existing physical workspace. • The criteria can be used to evaluate and improve your layout. • Review each criteria. Ask: • Does the layout align to this criteria? • How can the layout align to the criteria? 42 LSS Green Belt IMPROVE v2.6 21 The indicators of a good physical layout The 5S Audit Worksheet for a Physical Environment 43 LSS Green Belt IMPROVE v2.6 The indicators of a good physical layout, continued 44 LSS Green Belt IMPROVE v2.6 22 Secure stakeholder feedback on the proposed layout. Changes to the physical work environment are often resisted by staff because: • They represents a change to the status quo. • They directly impact their personal needs. Resistance increases when employees have no opportunity to provide feedback on the change prior to its implementation. • Good ideas can be rejected, not because they lack value, but as a means of retaliation. 45 LSS Green Belt IMPROVE v2.6 Validating selected solutions Pilot Testing What is a pilot test? • A limited-scale, live, controlled deployment of your selected solution to validate the impact on the project’s metric(s) Key points to remember: • • You are piloting the improved process and initial control plan The objective is to: – Acquire statistical proof of an improvement to the Y with the new process – Verify the effectiveness of the initial control plan 46 LSS Green Belt IMPROVE v2.6 23 How pilot tests are conducted 2. The improved process and control plan is deployed 1. The pilot test is planned Pilot Testing 4. The data (if stable) is analysed • • 3. The stability of the Y is monitored with control charts Hypothesis testing determines if the Y was improved Sigma Levels define the capability of the Y 47 LSS Green Belt IMPROVE v2.6 How control charts are used Control charts are used to assess the stability of the Y during the pilot: • Data on the Y is collected • The data is plotted on the control chart (you can add to the initial control charts for your project metrics created in the Measure phase) • The control chart helps determine whether the improved process (during the pilot run) performs in a stable manner 48 LSS Green Belt IMPROVE v2.6 24 How hypothesis testing is used Hypothesis tests can determine whether improvement has occurred with the Y: Has the goal for the project metric been achieved? H0: YImproved = Goal HA: YImproved < Goal Is the Y for the improved process different from its baseline measure? H0: YImproved = YOld HA: YImproved < YOld 49 LSS Green Belt IMPROVE v2.6 Why a sigma level is calculated for the Y The sigma level defines the capability of the new process to meet the requirement for the Y over time: • The Sigma Level for the Y will estimate the number/percentage of defectives for the Y. • Use the customer specification to calculate the Sigma Level. 50 LSS Green Belt IMPROVE v2.6 25 The duration of pilot test The duration of the test is driven by the data requirements to: • Assess the stability of the Y • Conduct the appropriate hypothesis test • Calculate the Sigma Level 51 LSS Green Belt IMPROVE v2.6 Pilot tests require careful planning Careful planning of your pilot test is critical when: • Your solution may present significant risk to the business • The scope of the project may be large • The cost of the solution (acquisition and deployment) may be high • The solution might have long term effects and consequences 52 LSS Green Belt IMPROVE v2.6 26 The elements of the pilot test plan Elements of a good pilot plan: • The validation methods to be used • How the test will be conducted • The project risk management approach (including stakeholders) • The measurement systems used • The data collection plan • The evaluation criteria and strategies for the pilot 53 LSS Green Belt IMPROVE v2.6 Tips for planning the pilot test Improve the value of your pilot test by: • Applying the principle of “stress testing” • Collecting data on other factors (process or external) that are likely to influence the results • Observing as much of the pilot test as possible 54 LSS Green Belt IMPROVE v2.6 27 Other benefits of pilot testing In addition to validating the effectiveness of your solution, the pilot test: • Evaluates the effectiveness of your initial control plan • Reveals tips and traps for the full deployment • Simplifies the effort to estimate the cost savings for the solution • Minimises long-term resistance to the solution among stakeholders 55 LSS Green Belt IMPROVE v2.6 The importance of checking your measurement systems Consider the quality of the measurement systems before conducting the pilot. • Review the key measurement systems (defined in the control plan) that will be used during the pilot test. • Determine if there are likely precision and accuracy issues for: • The measurement of the project metrics • The measurement of the vital few inputs (x’s) Do not start the pilot until you have a high level of confidence in your measurement systems. 56 LSS Green Belt IMPROVE v2.6 28 The importance of educating impacted staff Staff involved/impacted in the pilot test need to understand: • The purpose and duration of the pilot test • The requirements to operate the process using the control plan • Any additional data collection requirements for the pilot (not specified in the control plan) 57 LSS Green Belt IMPROVE v2.6 Team roles during the pilot Clarify and communicate what the team should look out for during the test: What is observed (and learned) by team members can be applied when: • Conducting any follow-on pilot tests if the improved process shows minimal or no improvement to the Y • Developing the full-scale implementation plan for the solutions (if the goal for the Y is achieved). • Developing the final control plan for any affected process steps 58 LSS Green Belt IMPROVE v2.6 29 Evaluate the results of the pilot tests graphically 59 LSS Green Belt IMPROVE v2.6 Evaluate the results of the pilot tests numerically Calculating Sigma Level for Discrete Data 16,000 8,902 Enter Number of Items Evaluated Enter Number of Defective Items This is your Sigma Level This is your Yield This is your DPM 1.36 44.36% 556,375 Directions for Template: Provide the required data in the gray boxes for either continuous or discrete data types and the blue boxes will be calculated Calculating Sigma automatically. Level for Discrete Data Enter Number of Items Evaluated Enter Number of Defective Items This is your Sigma Level This is your Yield This is your DPM 1,500 460 2.01 69.33% 306,667 60 LSS Green Belt IMPROVE v2.6 30 Determine the appropriate follow-up actions Outcome Action The pilot results are acceptable • Develop a plan for the full-scale implementation of the process • Finalise control plan Improvement occurs with the project metric (but not to the goal level) • Determine if the test was conducted properly. • Verify the vital few inputs (x’s) • Review solution to determine if changes are necessary • Modify solution and the control plan as necessary • Repeat the pilot test No change or improvement occurs with the project metric • Determine if the test was conducted properly • Verify the vital few inputs (x’s) • Repeat the solution generation and selection activity • Update the control plan for the new solutions • Repeat the pilot testing process 61 LSS Green Belt IMPROVE v2.6 Summary of key learning points Pilot the new process to refine the design Testing of selected solutions should include: - Layout of the workspace where the new process will be and - Testing of the new process itself Assess the pilot results for improvement in process performance and stability 62 LSS Green Belt IMPROVE v2.6 31 Recommended coach support points Reviewing your detailed floor layout Determining how to engage stakeholders in a review of the proposed layout Reviewing your pilot test plan When developing the strategy to rollout the pilot test. When evaluating the pilot test results 63 LSS Green Belt IMPROVE v2.6 IMPROVE Initial control planning 32 Initial control planning Brainstorming Detailed physical layout Create initial control plan Implementation plan Benchmarking Piloting Mistake proofing Communication plan Assumption busting Visual Management Force field analysis 5S Pugh matrix 65 LSS Green Belt IMPROVE v2.6 Preview of the lesson At the end of this lesson, you will be able to: • Describe the purpose, benefits, focus and structure of a control plan • Explain where and how control plans are applied in the DMAIC methodology • Construct an initial control plan for the vital few inputs (x’s) with their solution in the improved process • Select and apply the appropriate: • Method to determine the out-of-control conditions for your vital few inputs (x’s) • Control method for the vital few inputs (x’s) • Construct a reaction plan to use when out-of-control conditions are detected 66 LSS Green Belt IMPROVE v2.6 33 The purpose of a control plan Control plans are based on the fundamental concept of Y=f(x): If… Then… You can control the vital few inputs (x’s) that affect your metric (Y) You will have an improvement that lasts 67 LSS Green Belt IMPROVE v2.6 The purpose of a control plan Control plans are a key management tool to sustain your project improvements: Ongoing Process Management • Managing the process to assure its long-term performance involves: Defining How the Improved Process will Work Controlling the Vital Few Inputs (x’s) within the Process Control Plans are a Critical Management Tool for Each Activity Monitoring the Ys for the Process 68 LSS Green Belt IMPROVE v2.6 34 The purpose of a control plan What is a control plan? • The blueprint for managing the improved process. • It is a one-stop reference view of: – The vital contributors to the success of a process – The required data-driven actions to manage the process • It includes documentation to effectively manage the process such as: – Detailed process maps – FMEAs for process steps – Standard Operating Procedures (SOPs) 69 LSS Green Belt IMPROVE v2.6 Benefits of a control plan A well-designed control plan offers significant benefits: • Institutionalises the improvements • Defines what needs to happen for the process to operate consistently on target with minimum variation • Minimises process tampering (over-adjusting the process) • Defines the key training needs for the daily operation and management of the process Control plans must be reviewed and updated regularly 70 LSS Green Belt IMPROVE v2.6 35 The focus of a control plan Control plans are built for processes, not projects • Control plans are not isolated, project-specific documents completed to pass a tollgate. • Control plans are process management tools. • The findings from your DMAIC project are incorporated into an existing control plan for the relevant business process. If the process … Then you … Has an existing control plan Update the existing control plan with the findings for your project. Does not have an existing control plan Populate a new control plan for the process with your project information. 71 LSS Green Belt IMPROVE v2.6 The structure of a control plan Control plan elements: 1. Detailed process maps 2. FMEA’s for the process steps 3. SOPs 4. Customer Critical-toQuality (CTQ) Requirements and Measures 5. Critical information technologies used 6. Reaction plans for the x’s and Y’s 7. Training requirements for the process 8. Review/maintenance schedule for the control plan 9. Capability studies for the process metrics 10. Measurement Systems Analysis (MSA) results for the vital few inputs (x’s) and key metrics (Y’s) 11. A control plan summary sheet 72 LSS Green Belt IMPROVE v2.6 36 How control plans are used in DMAIC Control plans are developed/updated at two points in the DMAIC process: • • An initial control plan is developed in the Improve phase. – Focuses on the vital few inputs (x’s) to which the solution is applied. – Ensures that your solution is implemented properly for the pilot test The final control plan is implemented in the Control phase. – Updates the initial control plan based on the pilot test results – Incorporates all findings and lessons learned from the project to the process 73 LSS Green Belt IMPROVE v2.6 Identifying out of control conditions Before identifying these conditions, we need to have an updated process map to develop the initial control plan: • Applying your solution for the vital few inputs (x’s) will require changes to the process – New steps might be added – Existing steps might be removed – Requirements or standards might have changed for existing steps • You should update the detailed process map from the Measure phase to reflect the process as it “should operate” with the solution 74 LSS Green Belt IMPROVE v2.6 37 Methods to identify out-of-control conditions: Specification Limits • The solutions for some x’s might have been limited to establishing acceptable levels or settings for the x. Values outside specification limits define an out-of-control condition: • For example: • The number of call centre staff available (20 to 25) An out-of-control condition for these x’s occurs when a value for the x falls outside a specification limit. LSS Green Belt IMPROVE v2.6 75 Methods to identify out-of-control conditions: FMEA for the Improved Process An FMEA of your improved process identifies out-of-control conditions: # Process Function (Step) Potential Failure Modes (process defects) Potential Failure Effects (Y's) S E V Potential Causes of Failure (X's) O C C Current Process Controls D E T R P N 1 Customer initiates telephone inquiry -VRU drops call Customer must redial 3 Phone system overload 2 Alert once overload has occurred 4 24 7 Utilize resources to resolve inquiry Wrong solution given Customer leaves bank 5 Lack of experience with resources (computer sytems) 3 QA listens to random calls and provides coaching 4 60 7 Utilize resources to resolve inquiry Wrong solution given Customer has to call back 3 Lack of experience with resources (computer sytems) 3 QA listens to random calls and provides coaching 4 36 7 Utilize resources to resolve inquiry Wrong solution given Bank must absorb an additional cost 1 Lack of experience with resources (computer sytems) 3 QA listens to random calls and provides coaching 4 12 8 Process request -Customer action gets dropped when escalation or referral is required Customer must call again and sit through the wait times 3 Technical glitch 1 No 5 15 9 Prepare package for processing center Information inaccurate Customer problem is not resolved or wrong action taken 4 Poor typing skills 2 None 5 40 9 Prepare package for processing center Information inaccurate Customer problem is not resolved or wrong action taken 4 no clear pollicies or procedures for what to include 4 QA listens to random calls and provides coaching 4 64 9 Prepare package for processing center -Information omitted Customer problem is not resolved or wrong action taken 4 Fields missing in database entry screen 3 No 4 48 76 LSS Green Belt IMPROVE v2.6 38 Methods to identify out-of-control conditions: FMEA for the Improved Process An FMEA of your improved process identifies out-of-control conditions: • FMEA evaluates/prioritises the potential failures of a process to prevent them from occurring. • The FMEA in the Improve phase differs from the Measure phase FMEA • The FMEA in the Measure phase focused on the existing process. • The FMEA in the Improve phase focuses on the improved process, which incorporates your solution. 77 LSS Green Belt IMPROVE v2.6 Identifying out-of-control conditions from the FMEA Out-of-control conditions are the causes (and their respective failure modes) with one or more of the following indicators: 1. A high risk-priority number (RPN) relative to all RPNs generated 2. High occurrence and high detection ratings (regardless of the Severity rating) -- customer nuisance 3. High occurrence and low detection ratings (hidden factory) 4. A high severity rating 78 LSS Green Belt IMPROVE v2.6 39 Follow-up actions from the FMEA The next steps for the out-of-control conditions identified by the FMEA: • Determine if we can eliminate (or mistake-proof) the causes • Determine how to identify these out-of-control causes or failure modes in the process • Create reaction plans for these out-of-control conditions once they are identified These should be documented on the FMEA as Recommended Actions. 79 LSS Green Belt IMPROVE v2.6 Follow-up actions from the FMEA The next steps for the out-of-control conditions identified by the FMEA: # Process Function (Step) Potential Failure S Potential O Potential Failure Modes (process E Causes of C Effects (Y's) defects) V Failure (X's) C Current Process Controls D R Responsible Recommend E P Person & Actions T N Target Date S O D R E C E P V C T N Taken Actions 1 2 3 4 5 80 LSS Green Belt IMPROVE v2.6 40 Methods to identify out-of-control conditions: Control Charts Control charts can signal an out-of-control condition for your x’s: • Control limits on a control chart signal the presence of a special cause of variation within the process. • We should consider control charting the vital few inputs, especially the controllable and noise variables 81 LSS Green Belt IMPROVE v2.6 The two types of control methods Control methods can have a prevention or detection orientation: Prevention-Oriented Control Methods · Prevent the cause Failure Mode Cause Effect Controls Detection-Oriented Control Methods · Detect the cause · Detect the failure mode 82 LSS Green Belt IMPROVE v2.6 41 Mistake-proofing as a control method Mistake-proofing is an action taken to: •Remove the opportunity for an error in a process, or •Make the error so obvious that it cannot reach the customer •Also called Poka-Yoke, a Japanese term that means to avoid (yokeru) inadvertent errors (poka) 83 LSS Green Belt IMPROVE v2.6 Mistake-proofing as a control method Prevention Mistake proofing activities at focus on: Making Errors Preventing Errors Impossible Cause Failure Mode Effect Detection Mistake proofing activities at this point focus on: · Detecting errors · Making sure errors do not turn into defects 84 LSS Green Belt IMPROVE v2.6 42 The three mistake-proofing techniques Mistake-proofing prevents or detects errors through three techniques: Technique Prevention Detection Shutdown When a mistake is about to be made When a mistake or defect has been made Control Errors are impossible Defective items can’t move on to the next step Warning That something is about to go wrong Immediately when something does go wrong 85 LSS Green Belt IMPROVE v2.6 Table exercise: Mistake proofing There are many ways to mistake-proof a process. Review each of the following examples and determine: • What is the defect to be prevented? • Will the method described prevent or detect the defect? Time 10 mins 1: Some cameras will not function when there isn’t enough light to take a picture. 2: Some clothes dryers have a device that shuts them down when overheating is detected. 3: A fruit orchard takes great pride in the size of its apples. All of its apples must pass through a sizer. The small apples are sent to a discount outlet. The large apples are sent to customers. 4. Smoke detectors provide a warning that smoke has been detected and that there’s a possible fire. 86 LSS Green Belt IMPROVE v2.6 43 Visual management as a control method What is Visual Management? • A control method using visual tools that enables your process to talk or tell you: • When everything is OK • More importantly, when everything is not OK • The visual tools enable “Management at a Glance”: • You can easily recognise the difference between normal and abnormal conditions as they occur. • The abnormalities are made obvious to completion. Technique Prevention Detection Shutdown When a mistake is about to be made When a mistake or defect has been made Control Errors are impossible Defective items can’t move on to the next step Warning That something is about to go wrong Immediately when something does go wrong 87 LSS Green Belt IMPROVE v2.6 Visual displays and controls Visual Displays: Communicate important information, but do not influence or control what people or equipment do. Visual Controls: Communicate information so that activities are performed according to standard procedures. Visual displays and controls create a common visual language in the workplace. 88 LSS Green Belt IMPROVE v2.6 44 The foundation of visual management: The 5S Approach • Methodology for creating and maintaining an organised, clean, high performance workplace • Target areas: • People, materials, equipment methods and information The 5S Approach Sort • Get rid of what is not needed Store • Arrange and identify for ease of use Shine • Clean daily. Clean up what’s left Standardise • Create standards and standard methods Sustain • Set discipline, plan and schedule 89 LSS Green Belt IMPROVE v2.6 Foundation FindThe 1 to 49 in sequence of Visual Management: The 5S Approach Step 2: Determine the Appropriate Control Methods 90 LSS Green Belt IMPROVE v2.6 45 1. Sort – Decide on what is needed Sort • To sort out necessary and unnecessary items Definition • Clear Workplace and remove all un-needed items such as files, binders, electronics, and excess materials • Removes waste • Creates a safer work area Benefits • Increases available workspace • Simplifies the visualisation of the process • Start in one area, then sort through everything Tips • Discuss removal of items with all persons involved • Do it safely and recycle as appropriate 91 LSS Green Belt IMPROVE v2.6 27 Now do it again 30 23 47 40 10 13 92 LSS Green Belt IMPROVE v2.6 46 2. Store – arrangement of items needed Store Definition • To arrange all necessary items - have a designated place for everything and to put everything in its place • Visually shows what is required or is out of place Benefits • Reduces time to locate items/documents • Saves time, not having to search for items • Things used together should be kept together Tips • Use labels, tape, floor markings, and signs to label items • Keep items that are shared in a central location (eliminate excess, equal access) 93 LSS Green Belt IMPROVE v2.6 Try it again!! 10 9 5 19 13 30 23 36 40 47 94 LSS Green Belt IMPROVE v2.6 47 3. Shine – sweep and cleanliness Shine Definition • To keep areas clean on a continuing basis; while continuously raising the standards • A clean workplace is indicative of a quality product and process Benefits Tips • A clean workplace helps to identify abnormal conditions and improve morale • Storing “everything in its place” makes time available for cleaning • Identify individual responsibilities for cleaning 95 LSS Green Belt IMPROVE v2.6 4. Standardise – create a common language Standardise Definition • To maintain the sorting, storage and shining activities into the workplace at a consistent level • Helps uncover problems and reveal their magnitude Benefits Tips • Without standardisation of sorting, storage and shining, the improvements from the first 3S’s will disappear • Keep the work place neat and clean for visual identifiers to be effective in uncovering problems • Develop a system that will enable anyone in the workplace to see problems as they occur 96 LSS Green Belt IMPROVE v2.6 48 5. Sustain – training & disciplined culture Sustain Definition • Practicing and repeating the 4S’s regularly until they become a way of life in the workplace • Assessing the current practices and developing appropriate corrective actions • Sustain the 5S’s into our everyday process as a habit. Benefits • Commitment and discipline toward housekeeping is essential in taking the first step in being World Class Tips • Develop schedules and checklists for the 4S actions 97 LSS Green Belt IMPROVE v2.6 30 27 What 2 numbers are missing between 1 and 49? 51 62 23 47 40 10 58 13 79 98 LSS Green Belt IMPROVE v2.6 49 So easy!!!! 1 2 3 6 7 11 12 13 14 15 16 21 22 32 41 4 5 8 9 10 17 19 20 23 24 25 26 27 28 29 30 33 34 35 36 37 38 39 40 43 44 45 46 47 48 49 99 LSS Green Belt IMPROVE v2.6 Examples of Visual Management Dashboards are a common visual management tool: • A dashboard is a collection of relevant visual displays and controls. • Dashboards are readily visible. • Other visual management tools include: • Pacing devices • Real-time visual / audible feedback (such things as counters, signals, color-coding, speakers, alarms and downtime clocks) 100 LSS Green Belt IMPROVE v2.6 50 Control charts as a control method Control charts can be applied to the vital few inputs (x’s) to provide a statistical signal for an out-of-control condition • Apply control charts to x’s classified as noise (N) or controllable (C) variables on your detailed process flow. • When using control charts: • Prepare instructions and incorporate them into the SOP. • Define and train appropriate employees. • Prepare a reaction plan for out-of-control signals. 101 LSS Green Belt IMPROVE v2.6 Process performance measurement as a control method Process performance measurement monitors the key Y’s for the process: • Designing, evaluating and monitoring the measurement systems for the Y’s • Applying statistical process capability and control methods to the Y’s 102 LSS Green Belt IMPROVE v2.6 51 Standard Operating Procedures as a control method SOPs are an agreed-upon set of procedures for the new, improved process. • Prepared to establish the best (and most reliable) sequence/methods for the process. • Incorporated into the control plan. • Benefits of Standard Work: • Defines a consistent, repeatable process • Defines a process to produce high-quality, low-cost products and services • Defines a process that minimises waste • Facilitates learning and consistent performance among employees 103 LSS Green Belt IMPROVE v2.6 Tips and guidelines for applying standard work Follow these guidelines when applying standard work: • Specify requirements for inputs classified as “SOP” in your detailed process map. • SOPs document how you will control the process. They are a mandatory deliverable for the improved process. • Incorporate the use of job aids into the SOP • Design steps that a typical employee can perform. • Use a team approach: • Schedule regular and frequent idea meetings. • Revisit periodically. Standard work is not a one-time method. • Make information readily available and easy to access for staff. • Standard work must be sold to staff: • The importance of standardised jobs • Adhering to the SOPs and job aids 104 LSS Green Belt IMPROVE v2.6 52 Steps to apply the standard work method Steps to apply the standard work method. Step Action 1 Lists the steps in the procedure in the order to be performed. Define the position that should complete the step. 2 Estimate the time to complete each step. 3 Document the expected outcome for each step as well as potential out-of-control conditions (what they are and how to identify them). 4 Specify reaction plans for these out-of-control conditions. 5 Document the process and its control checkpoints. 105 LSS Green Belt IMPROVE v2.6 Inspection as a control method Inspection is the least effective of the control methods: • Most inspection activities focus upon the Y’s (the process metrics or outputs). • Inspection can be used for your x’s. • It should not be the major (or only) control method for the process. Why not? – Inspection is not 100% effective. – Inspection is costly and time consuming. – Inspection, as the sole control, has a marginal impact on the detection rating. 106 LSS Green Belt IMPROVE v2.6 53 Control method summary Prevent Cause Detect Cause Detect Failure Mode    Prevents controllable x’s or compensates for noise x’s Visual Management   Helpful to identify out-of-control conditions Control Charts   Apply control charts to all vital few inputs (x’s) designated as controllable and noise  Use to monitor the Y and ensure improvements are sustained. Identifies future improvements  Must have in all control plans  Should not be the only control method in the control plan Method Mistake-Proofing Process Performance Management SOPs Inspection   Notes 107 LSS Green Belt IMPROVE v2.6 The concept of a Reaction Plan Reaction plans should be prepared for each control method • Define the probable causes and appropriate corrective actions whenever an out-of-control condition is detected by the control method • Serve as a troubleshooting guide for staff 108 LSS Green Belt IMPROVE v2.6 54 Components of a Reaction Plan Reaction Plan components: • A description of the out-of-control condition • The probable causes for the condition and their corrective actions • The actions to diagnose/confirm the probable causes • Who is responsible for the diagnosis and action 109 LSS Green Belt IMPROVE v2.6 Document the initial control plan The Control Plan Summary template is a spreadsheet that: • Profiles the key process steps (that is the step, its inputs, outputs and owner) • Summarises: – The performance characteristics for the steps – The control methods for the steps – The reaction plan for the steps 110 LSS Green Belt IMPROVE v2.6 55 The Control Plan Summary Template Ongoing Process Management The Elements of the Control Plan Summary : Defining How the Improved Process will Work Controlling the Vital Few Inputs (x’s) within the Process Control Plans are a Critical Management Tool for Each Activity Monitoring the Ys for the Process 111 LSS Green Belt IMPROVE v2.6 The Control Plan Summary template The Elements of the Control Plan Summary : Defining How the Improved Process will Work Monitoring the Ys for the Process Controlling the Vital Few Inputs ( x’s) within the Process 112 LSS Green Belt IMPROVE v2.6 56 Summary of key learning points The initial draft of the control plan should be drafted and tested within the Improve phase There are preventative, detective and inspection methods to control the vital x’s Have a reaction plan to deal with out of control conditions 113 LSS Green Belt IMPROVE v2.6 Recommended coach support points Developing a FMEA for the new, improved process to identify outof-control conditions Selecting and configuring the appropriate control methods for your vital few input(s) Reviewing the initial control plan in its entirety Be sure to involve the Process Owner in the development of the Control Plan 114 LSS Green Belt IMPROVE v2.6 57 IMPROVE Implementation Plan Implementation plan Brainstorming Detailed physical layout Create initial control plan Implementation plan Benchmarking Piloting Mistake proofing Communication plan Assumption busting Visual Management Force field analysis 5S Pugh matrix 116 LSS Green Belt IMPROVE v2.6 58 Preview of the lesson At the end of this lesson, you will be able to: • Describe how the Implementation Plan Checklist is used when preparing an Implementation Plan for your project • Explain why stakeholders often resist change • Develop a proactive Communication Plan for the implementation of your solution • Determine the training requirements associated with the implementation and adoption of the new solution • Identify and evaluate the key risk items that require mitigation strategies in your Implementation Plan • Construct strategies to transfer the Control Plan to the Process Owner 117 LSS Green Belt IMPROVE v2.6 Guidelines and tools for preparing an implementation plan A good Implementation Plan will include activities to: • Procure the solution, if appropriate • Introduce the solution to: • The staff who will apply the solution • The managers who oversee the process where the solution is deployed • Equip people with the knowledge and skills to introduce, use, and manage the solution • Monitor and evaluate the success of the transition to the new solution The content of the Implementation Plan will vary from solution to solution 118 LSS Green Belt IMPROVE v2.6 59 Overview of the implementation plan checklist The Implementation Plan checklist defines the critical elements to address in your Implementation Plan: 1. Key Assumptions for the Implementation 2. Process Change Considerations 119 LSS Green Belt IMPROVE v2.6 Overview of the implementation plan checklist, Continued The Implementation Plan Checklist defines the critical elements to address in your Implementation Plan: 3. Improved Process and Implementation Risk 4. Control Plan 120 LSS Green Belt IMPROVE v2.6 60 Overview of the implementation plan checklist, Continued The Implementation Plan Checklist defines the critical elements to address in your Implementation Plan: 5. Verification of Results 6. Implementation Approval 7. Sign-Off 121 LSS Green Belt IMPROVE v2.6 Document key implementation assumptions Typical areas of assumptions People Staff or customers impacted by the solution, vendors, other stakeholders of the project or process Operational Impacts The upstream or downstream impact of the process improvement Technology Whether existing technology is capable of handling the impact of the change Facilities/ Locations Whether facilities, locations or workspace where the solution will be implemented are adequate and prepared Communication Assumptions regarding planned communication of the change Training Assumptions regarding the ability to deliver or receive training in the solution 122 LSS Green Belt IMPROVE v2.6 61 Identify process change considerations Use the Implementation Plan Checklist to document the improved process considerations. 123 LSS Green Belt IMPROVE v2.6 Change Adoption - Why solutions are resisted Reasons why your solution might be resisted: • It is viewed as a threat to a personal or organisational need • It is viewed as unnecessary • It is perceived to do more harm than good • The people introducing the solution are not respected • No opportunities were given to provide feedback on the solution • It is perceived as a personal criticism of the work performed • It is perceived to add more work or effort than to keep the status quo • Information on the change is heard secondhand LSS Green Belt IMPROVE v2.6 124 62 The importance of proactive communication The minimum you can do to reduce resistance to change is proactive, effective communication. • Communicate the right information to the key stakeholders: • The need for the project • The vital few inputs confirmed for the Y • The rationale and benefits of the solution • How the standard work process will change (or remain the same) • How the implementation will occur • Their roles in implementing/supporting the change • Have the right people communicate the change: • Project Champion, Process Owner or both • Solicit input from the stakeholders 125 LSS Green Belt IMPROVE v2.6 Overview of a communication plan template 126 LSS Green Belt IMPROVE v2.6 63 The implementation plan checklist summarises key communication activities Use the Communication Summary section of the Implementation Plan Checklist to highlight the key communication activities. 127 LSS Green Belt IMPROVE v2.6 The three types of training requirements for your solution Training is required whenever people lack the knowledge or skills to: • Roll out your solution to the targeted user community • Who: The people who will introduce the solution. Normally the Process Owner or Managers of the staff who are adopting the solution • Adopt the solution • Who: The staff who will use/apply the solution on a daily basis in the process • Monitor/manage the solution • Who: Managers of the staff who are adopting the solution 128 LSS Green Belt IMPROVE v2.6 64 Common training methods A range of training methods can be used to address the training requirements for your solution. Consider … When your training need … Job aids or selfstudy materials Is knowledge-based and does not require memorisation or quick access of information. E-learning Is knowledge-based and occurs regularly among a large and/or geographically dispersed audience. Instructor-led, classroom-based training Is lengthy and involves complex skills requiring practice and instructor feedback. Telephone/WebBased Conferences Is short, involves simple skills requiring demonstrations and simple practices and occurs among a geographically dispersed audience. 129 LSS Green Belt IMPROVE v2.6 The implementation plan checklist summarises your key training activities Use the Training Summary section of the Implementation Plan Checklist to highlight your key training activities. 130 LSS Green Belt IMPROVE v2.6 65 Identify and evaluate the risks associated with the deployment of the solution Mitigation strategies should be incorporated into your Implementation Plan for the following risk items: Risk Type Description Project Risks “Red Status” risk items from the recent Project Risk Assessment that do not have a mitigation plan in place Process Risks Risk items from the FMEA of the improved process that have either: • A Risk Priority Number (RPN) greater than 30 • A Severity Rating of 5 and no mitigation plan in place Other Risks Risk items identified during the pilot test or when reviewing the process steps that will change for the solution. 131 LSS Green Belt IMPROVE v2.6 The implementation plan checklist summarises the high-risk items for the deployment Record your high-risk items on the implementation plan checklist: 132 LSS Green Belt IMPROVE v2.6 66 Your plan should include activities to update and transfer the control plan to the Process Owner You will need to incorporate the following Control Plan activities into your overall Implementation Plan: • Activities to update the initial Control Plan, if necessary, based on the pilot test results • Activities to finalise the Control Plan – Develop and implement an audit schedule for the Control Plan. – Transition ownership of the newer Control Plan to the Process Owner. 133 LSS Green Belt IMPROVE v2.6 Your plan should include activities to update and transfer the control plan to the Process Owner (cont’d) The checklist includes questions to verify that you have planned adequately for the transfer of the Control Plan. 134 LSS Green Belt IMPROVE v2.6 67 Supporting the transition The Project Lead: • Assumes a consultative role, assisting the Process Owner in the activities to: – Control the vital few x’s and monitor the Y – Verify sustainable improvement to the Y The Implementation Plan Checklist identifies how long the Project Lead will work with the Process Owner: 135 LSS Green Belt IMPROVE v2.6 Approving the transition Include the signatures of the Project Champion, Coach, Process Owner and Finance Certifier on the Checklist: 136 LSS Green Belt IMPROVE v2.6 68 Summary of key learning points A clear implementation plan will ensure that solutions are deployed in the most effective manner The plan should not only cover technical implementation activities but address some of the people issues associated with change Ensure that you have full approval on your plan before deploying your solution within your business 137 LSS Green Belt IMPROVE v2.6 Recommended coach support points There are recommended support points with your Coach, Project Champion or Process Owner. Be sure to engage your Coach in a review of: • Your Communication and Training Plans for the deployment • The high risk items for the deployment and your risk mitigation strategies • Your approach to transfer the Control Plan to the Process Owner Be sure to engage your Project Champion and Process Owner in a review of: • The overall Implementation Plan 138 LSS Green Belt IMPROVE v2.6 69 Key points of the Improve phase Lean Six Sigma is all about implementing sustainable successful solutions for business. Generate high volumes of ideas through creative thinking techniques Use a Pugh matrix to select between and synthesise different solution options Assess solutions within the physical work environment and as part of a pilot Have a detailed plan to implement successfully addressing the people aspects of change 139 LSS Green Belt IMPROVE v2.6 Lean Six Sigma simulation: Final Round The coin simulation Objective: Use the tools covered in this and the Analyse module to prepare: The future state value stream map Implement any changes you feel will improve performance 60 mins NOTE THERE IS A NEW COMPETITOR IN THE MARKET 140 LSS Green Belt IMPROVE v2.6 70 CONTROL Lean Six Sigma Green Belt Objectives of this module At the end of this module, you will be able to: Use statistical process control Deploy your solutions successfully Close your Lean Six Sigma project 2 LSS Green Belt CONTROL v2.6 10/8/2014 1 Control Phase Overview Sampling strategy Deployment Choosing the appropriate control chart Lessons Learned Signals of special cause Project closure 3 LSS Green Belt CONTROL v2.6 10/8/2014 CONTROL Statistical Process Control 2 Statistical Process Control Sampling strategy Deployment Choosing the appropriate control chart Lessons Learned Signals of special cause Project closure 5 LSS Green Belt CONTROL v2.6 10/8/2014 Preview of the lesson At the end of this lesson, you will be able to: Create the sampling strategy for the Control Chart and document it in the Control Plan Choose the appropriate Control Chart for the variables Identify signals of special cause when looking at a Control Chart 6 LSS Green Belt CONTROL v2.6 10/8/2014 3 Review of Measure material What are Control Charts? Upper Control Limit Center Line Lower Control Limit 0 10 20 30 7 LSS Green Belt CONTROL v2.6 10/8/2014 Use of Control Charts to identify type of variation Two types of variation: • Common cause variation • Special cause variation UpperUCL Control Limit Center Line LCL Lower Control Limit 0 10 20 30 0 10 2 0 8 LSS Green Belt CONTROL v2.6 10/8/2014 4 Error in control charting 9 LSS Green Belt CONTROL v2.6 10/8/2014 Signals of unusual variation Variation in call handle time: •What are some examples of common cause variation in the handle time for a call? •What are some examples of special cause variation in the handle time for a call? 10 LSS Green Belt CONTROL v2.6 10/8/2014 5 Control Chart variables to evaluate Variables typically include: •Project Y’s: monitor the primary and secondary metrics •Vital Few Inputs (x’s): manage and control 11 LSS Green Belt CONTROL v2.6 10/8/2014 Control chart sampling strategy The Control Plan will specify: • Type of data • Sampling strategy • Designated control method PROCESS PERFORMANCE CHARACTERISTICS Process Step Process Step Input (s) Process Step Process Step Output (s) Owner LSL Call Center System Call Type Customer inquiry resolved 0.95 USL Target Customer CTQ 0.97 1st Call Resolution CONTROL METHODS Out of Control Conditions Measurement System for Process Evaluation 1 point outside Q&P randomly of control limits, records calls and trend reviews to ensure resolution SAMPLE SIZE FREQ. CONTROL METHOD 100 Weekly np chart REACTION PLAN (Refer to Process FMEA) Investigate out of control conditions 12 LSS Green Belt CONTROL v2.6 10/8/2014 6 Control Plan example CESS PERFORMANCE CHARACTERISTICS L USL Target 95 Customer CTQ 0.97 1st Call Resolution CONTROL METHODS Out of Control Conditions Measurement System for Process Evaluation 1 point outside Q&P randomly of control limits, records calls and trend reviews to ensure resolution SAMPLE SIZE FREQ. CONTROL METHOD 100 Weekly np chart REACTION PLAN (Refer to Process FMEA) Investigate out of control conditions 13 LSS Green Belt CONTROL v2.6 10/8/2014 What type of data are we collecting? PROCESS PERFORMANCE CHARACTERISTICS CONTROL METHODS p LSL 0.95 USL Customer CTQ Target 0.97 1st Call Resolution Out of Control Conditions Measurement System for Process Evaluation 1 point outside Q&P randomly of control limits, records calls and trend reviews to ensure resolution SAMPLE SIZE FREQ. CONTROL METHOD 100 Weekly np chart REACTION PLAN (Refer to Process FMEA) Investigate out of control conditions Our data for control charts can be: • Continuous • Discrete • Defects • Defectives 14 LSS Green Belt CONTROL v2.6 10/8/2014 7 Sampling strategy Determining the sampling strategy: • The four sampling strategies Sampling from a Population Random Sampling X Stratified Random Sampling X Systematic Sampling X Sampling from a Process X Rational Subgrouping X • The sampling strategy used by Control Charts is rational subgrouping. 15 LSS Green Belt CONTROL v2.6 10/8/2014 The challenge of Rational Subgrouping Challenge: Construct a sampling plan that focuses on detecting betweensubgroup variation by identifying subgroups that minimise withinsubgroup variation. Considerations: • Size of the subgroup • Frequency • Composition of the samples for the subgroup 16 LSS Green Belt CONTROL v2.6 10/8/2014 8 Minimising within subgroup variation Subgroup composition: • The within-subgroup variation influences the control limits. • The greater the within-subgroup variation, the wider will be the control limits. • Wide control limits may mask special cause variation that occurs between subgroups. 17 LSS Green Belt CONTROL v2.6 10/8/2014 Determining sampling frequency Factors to consider when determining frequency: • The sensitivity of the Control Chart refers to the ability of the Control Chart to detect special cause (or out-of-control conditions) between subgroups. • The frequency of sampling should be often enough for special cause variation to be detected when it occurs. • Try to maximize the variability between subgroups. 18 LSS Green Belt CONTROL v2.6 10/8/2014 9 Selecting the correct control chart – Control Chart Decision Tree Question 1: What is the data type for the variable? Question 2: What is the sampling strategy? 19 LSS Green Belt CONTROL v2.6 10/8/2014 Subgroup sizes Sampling Strategy Equal subgroup sizes Take this path when… Unequal subgroup sizes You collect different numbers of samples for each subgroup. For example, you might collect all forms received in a day (this will change day-to-day), all calls in an hour You collect the same number of samples for each subgroup For example, you might collect, 150 forms per day, 100 calls per hour 20 LSS Green Belt CONTROL v2.6 10/8/2014 20 10 Table activity: selecting the appropriate control chart Objective: Use of Control Charts In your table team, read each scenario on the following slide and answer the questions below to determine which Control Chart is most appropriate: What variable is identified? 20 mins Is this continuous or discrete? If discrete, is the data defects or defectives? How is data collected (as an individual value or in subgroups)? Is the same amount of data collected each time (fixed or variable subgroups)? How much data is collected each time (this is your subgroup size)? Prepare to report your team’s findings to the group 21 LSS Green Belt CONTROL v2.6 10/8/2014 Table activity: selecting the appropriate control chart The billing department in a gas supply company has found a relationship between customers receiving estimated bills and the number of credits issued by customer service. The department has started to monitor the number of bills that are based on actual meter readings. It will take a sample of 100 statements every day. Incorrectly lodged application forms are a problem for the company. Too many errors on each form cause major delays for new customers and drive significant additional cost into the business. The manager is monitoring the errors daily based on all the forms filed each day. The time to close mortgages is related to the time it takes to submit the application. The mortgage processing manager feels there may be a lot of variation in the time to submit the application and wants to start monitoring it. The manager plans to collect the time to complete every 50th mortgage application. 22 LSS Green Belt CONTROL v2.6 10/8/2014 11 What are signals of special cause? Signals of special cause: Signals of special cause are •One point outside the control limits •Non-random patterns in the data plotted over time that are unlikely to occur solely due to natural variation. What is a non-random pattern? 23 LSS Green Belt CONTROL v2.6 10/8/2014 Overview of non-random patterns There are four different categories of non-random patterns: • Cycling Pattern • Mixture Pattern • Shift Pattern • Trend Pattern 24 LSS Green Belt CONTROL v2.6 10/8/2014 12 Cycling Pattern Cycling pattern example: UCL LCL Possible causes: • Seasonal or periodic influences 25 LSS Green Belt CONTROL v2.6 10/8/2014 Mixture Pattern Mixture pattern example: UCL LCL 0 10 20 Possible causes: • Two or more overlapping process output distributions • Tampering 26 LSS Green Belt CONTROL v2.6 10/8/2014 13 Shift in process level Shift in process example: UCL LCL 0 10 2 0 Possible causes: • Introduction of new inputs • A change in inspection methods or standards • A process improvement 27 LSS Green Belt CONTROL v2.6 10/8/2014 Trend pattern Trend pattern example: UCL LCL 0 5 10 15 Possible causes: • A cumulative effect over time, such as an increase in staff knowledge with more experience • A gradual effect due to noise variables, such as an increase in the cycle time to process loans when volume increases 28 LSS Green Belt CONTROL v2.6 10/8/2014 14 Control charts for continuous data 29 LSS Green Belt CONTROL v2.6 10/8/2014 Overview of XBar R Charts XBar R Chart example: 30 LSS Green Belt CONTROL v2.6 10/8/2014 15 Control charts for discrete data Discrete Defects Defectives Equal subgroup size Unequal subgroup size Equal subgroup size Unequal subgroup size C Chart Number of Defects U Chart Defects per unit NP Chart Number of Defectives P Chart Proportion defective 31 LSS Green Belt CONTROL v2.6 10/8/2014 Characteristics of the U Chart Review the chart below: How would you interpret this? What do you notice about the control limits? 32 LSS Green Belt CONTROL v2.6 10/8/2014 16 Characteristics of the P chart control limits Look at the chart below: What do you notice about the control limits? Why might this happen? 33 LSS Green Belt CONTROL v2.6 10/8/2014 Summary of key learning points The key points to remember when using control charts to monitor and manage a process are: UCL Identify the variables to monitor Establish the sampling strategy. Select the appropriate Control Chart. Create and analyse the Control Chart. LCL 34 LSS Green Belt CONTROL v2.6 10/8/2014 17 Recommended coach support points When identifying variables to monitor using Control Charts The Data Collection Plan for the Control Charts For rational sub-grouping, the rationale for the subgroups, how your sampling plan will show less variation than expected between the subgroups 35 LSS Green Belt CONTROL v2.6 10/8/2014 CONTROL Deploying the solutions and closing your project 18 Deploy your solutions and close your project Sampling strategy Deployment Choosing the appropriate control chart Lessons Learned Signals of special cause Project closure 37 LSS Green Belt CONTROL v2.6 10/8/2014 Preview of the lesson After completing this lesson, you will be able to: • Describe the indicators of a successful deployment of your solution and control plan • Deploy the solutions and Control plan on a full-scale basis • Complete the required actions to close your Lean Six Sigma project • Explain the responsibilities of the Coach and Finance Certifier in closing your project 38 LSS Green Belt CONTROL v2.6 10/8/2014 19 Deploying the solution A successful deployment has three indicators: The Process Owner “owns” the solution and Control Plan Training for the solution and Control Plan is delivered The deployment of the solution is verified 39 LSS Green Belt CONTROL v2.6 10/8/2014 Deploying the solution Most organisations have their own implementation methodologies and standards. At a minimum, after a successful period of systems, integration and user acceptance testing a detailed task schedule and/or Gantt chart will be prepared documenting: Detailed implementation task list Implementation task ownership Timing Task dependencies Escalation Notifications of task start/completion times The task schedule may by controlled by the Project Manager or be managed centrally by a Control Room 40 LSS Green Belt CONTROL v2.6 10/8/2014 20 Document the key lessons learned from your project What are lessons learned? • Additional pieces of information discovered during a work effort. They can be: • Positive lessons (possible best practices) • Negative lessons • Lessons learned and best practices are the basis for continuous improvement of your Lean Six Sigma program. • Lessons learned are captured: • Informally throughout the project • Formally at the close of the project 41 LSS Green Belt CONTROL v2.6 10/8/2014 Document the key lessons learned from your project Sources of Lessons Learned: • Lessons Learned can be identified from: • The results of the project • The process improved • The use of the DMAIC methodology 42 LSS Green Belt CONTROL v2.6 10/8/2014 21 Other project closure activities Your Finance Certifier should: • Approve the Predicted benefits for your project • Agree how the benefits will be recognised • Mandate reporting frequency and responsibility 43 LSS Green Belt CONTROL v2.6 10/8/2014 The control phase tollgate must be completed A project must pass the Control Phase tollgate review to meet the criteria for closure. • The Project Lead, Coach and Project Champion must agree that the chartered project goals were met. • The Project Lead is responsible for completing the tollgate review. 44 LSS Green Belt CONTROL v2.6 10/8/2014 22 Summary of key learning points Poor deployment can undermine all the good work completed on your project to date Ensure you have a detailed plan for implementation Document and share any lessons learned and best practise Agree project benefits and recognition approach Complete Control tollgate and gain formal approval to close your project 45 LSS Green Belt CONTROL v2.6 10/8/2014 Recommended coach support points When deploying the solution/control plan • The final Control Plan • The strategy to transfer the Control Plan to the Process Owner. • The validation strategy for the Y after the solution/Control Plan has been deployed When closing your project • The information required to complete the Control phase tollgate review. • Your lessons learned from the project. 46 LSS Green Belt CONTROL v2.6 10/8/2014 23
Short Paper/Case Study Analysis Rubric Guidelines for Submission: Short papers should use double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to a discipline-appropriate citation method. Page-length requirements: 1–2 pages (undergraduate courses) or 2–4 pages (graduate courses). Critical Elements Main Elements Inquiry and Analysis Integration and Application Critical Thinking Research Writing (Mechanics/Citations) Exemplary (100%) Includes all of the main elements and requirements and cites multiple examples to illustrate each element Provides in-depth analysis that demonstrates complete understanding of multiple concepts All of the course concepts are correctly applied Draws insightful conclusions that are thoroughly defended with evidence and examples Incorporates many scholarly resources effectively that reflect depth and breadth of research No errors related to organization, grammar and style, and citations Proficient (90%) Includes most of the main elements and requirements and cites many examples to illustrate each element Provides in-depth analysis that demonstrates complete understanding of some concepts Most of the course concepts are correctly applied Draws informed conclusions that are justified with evidence Needs Improvement (70%) Includes some of the main elements and requirements Not Evident (0%) Does not include any of the main elements and requirements Value 25 Provides in-depth analysis that demonstrates complete understanding of minimal concepts Some of the course concepts are correctly applied Draws logical conclusions, but does not defend with evidence Does not provide in-depth analysis 20 Does not correctly apply any of the course concepts Does not draw logical conclusions 10 Incorporates some scholarly resources effectively that reflect depth and breadth of research Minor errors related to organization, grammar and style, and citations Incorporates very few scholarly resources that reflect depth and breadth of research Does not incorporate scholarly resources that reflect depth and breadth of research 15 Some errors related to organization, grammar and style, and citations Major errors related to organization, grammar and style, and citations Earned Total 10 20 100%
Running Head: PROJECT CHARTER Week 5 Assignment: Project Charter Presented By: Kimberly D. Hall Presented To: Mark Fournier Southern New Hampshire University January 27, 2019 PROJECT CHARTER 2 Executive Summary American Health Care (AHC), a managed care organization located in Baton Rouge, LA, is known for holding the Baton Rouge Area Chamber (BRAC) award of “The Best Workplace” for quite a few years. For the past two years, the BRAC employee survey ratings have dwindled from 99% to 67%. AHC Human Resources department conducts an annual employee satisfaction survey to 1) ensure its employees are satisfied and 2) ensure its employees have work-life balance. Today, there are many unsatisfied and unmotivated employees and the numbers have continued to decline. The survey results proved a high number of dissatisfaction ratings were from those employees who worked remote (from home). According to Great Places to Work (2018), employees who say they have a great place to work were four times more likely to say they're willing to give extra to get the job done. Always left out, teleworkers have become accustomed to just working and receiving no rewards, bonuses, or recognition. Because of company-wide emails and the organization’s home web page, the teleworkers are privy to all the goings-on at the corporate offices and the local offices in their home state; but cannot take part in the activities. Activities consists of wellness programs, health clubs, raffles, employee of the month and its benefits, holiday parties, holiday luncheons, annual employee picnic, games, merit rewards, lunch & learns, non-profit donation activities, development courses, etc. Employee dissatisfaction has made a significant impact on the organization meeting its strategic goals; thus impacting the organization as a whole. PROJECT CHARTER 3 PROJECT CHARTER Project Name: Teleworker Employee Engagement Project Number: 97-1234 Date: 1/1/2019 Revision Number: 0 1. PROJECT GOALS By incorporating the TEEC, the organization can expect to see an employee satisfaction rating increase of 5% to 8% by the end of June 2019 and upwards to 15% by the end of December 2019. The TEEC will work along with the organization’s current Employee Engagement Committee (EEC) but will engage solely with the teleworkers. The project deliverables shall include a new committee solely for teleworkers, a rewards/merit system, developmental course offerings, gift cards for wellness (when provided to in-office employees), and gift cards for meals (when provided to in-office employees), and a company web-based platform for the TEEC to engage solely with teleworkers which will include virtual capabilities for face-to-face engagement. The TEEC will plan major activities in conjunction with the current EEC but will have ad-hoc activities conducive for remote workers. AHC will conduct a follow-up study and test for increase in satisfaction in June 2019 but will use a 3rd party to conduct the survey. 2. DELIVERABLES Form a committee to include a director of Human Resources, a manager of Human Resources, and 12 teleworkers as committee members. After formation, schedule bi-weekly committee meetings through June 2019. After June, schedule monthly meetings for the remainder of the year. Design a company web-based platform designed for teleworker-only access and to include virtual capabilities for face-to-face engagement. The new system must include the following; • Ability to create a 2 access portals on the home page: 1 for the committee members and 1 for all teleworkers • Ability to create and push informational emails to all teleworkers • Allow user access for teleworkers only • Access to a teleworker directory • Ability to have virtual meetings • Ability to list developmental course offerings • Ability to highlight a teleworker of the month on home page • Ability to provide resources for Teleworkers 3. SCOPE DEFINITION The purpose of this project is to improve teleworkers satisfaction and overall work-life balance by organizing a Teleworker Employee Engagement Committee (TEEC) to satisfactorily engage and motivate the teleworkers of AHC (see Section 1: Project Goals). 4. PROJECT MILESTONES Project will begin on February 1, 2019 with a time to completion of June 30, 2019 (5 months). The project plan will be submitted and approved in accordance with the milestone schedule below. Upon approval of the project plan resources will be assigned to the project and work will commence within 5 business days. The Project Sponsor must approve any schedule changes which may impact milestones. A detailed schedule will be included in the project plan. The high level milestone schedule is: PROJECT CHARTER • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 5. 4 February 1, 2019 – Project Plan Complete and Approved February 6, 2019 – TEEC Committee formation begins February 6, 2019 – Assign resources to design the web-based portal February 9, 2019 – Project Manager to meet with Project Team to define the web-based portal and discuss project deliverables February 10, 2019 – Programmers begin project design and IT Specialist determine technical limitations of AHC’s policies and procedures. February 15, 2019 – TEEC 1st meeting (meeting to be led by leaders of the Corporate EEC) and TEEC member role assignments February 17, 2019 – Project Team meeting to discuss outcome of 1st committee meeting and provide updates and changes. March 1, 2019 – 2nd TEEC meeting (meeting to include leaders of the Corporate EEC for guidance) March 2, 2019 – Outlook meeting invite email sent to all teleworkers for mandatory meeting on 3/25/19 March 15, 2019 – 3rd TEEC meeting March 17, 2019 – Web-based portal beta design complete March 18, 2019 – Beta Testing (TEEC, Project Manager, and stakeholders test the portal – user access and issues identified) March 19, 2019 – Web-Based Portal Update March 25, 2019 – Mandatory All Teleworker Meeting (Introduce committee, portal training, and idea behind the project) March 25, 2019 – Web-Based Portal Implementation complete March 30, 2019 – 4th TEEC meeting (discuss telework engagement/activities ideas for April) April 1, 2019 – Portal Go-Live April 5, 2019 – Programmers & IT Specialist maintain and update portal April 5, 2019 – Select 3rd Party Survey company to conduct engagement survey April 10, 2019 – 1st Teleworker Engagement/Activity April 15, 2019 – 5th TEEC meeting (review of 1st activity, discuss gathering information for teleworker of the month for May, and the reward) April 16, 2019 – Meet with 3rd Party Survey Company on the survey questions and design April 30, 2019 – 6th TEEC meeting (vote on teleworker of the month) May 10, 2019 – Teleworker of the Month Award May 15, 2019 – 7th TEEC meeting May 20, 2019 – 2nd Teleworker Engagement/Activity May 25, 2019 – Meeting with 3rd Party Survey company to finalize the survey and method of delivery May 30, 2019 – 8th TEEC meeting June 1, 2019 – Survey Email sent to all teleworkers June 1, 2019 – June 15, 2019 – Survey Collection June 15th – 9th TEEC Meeting June 25, 2019 – Survey Results June 30, 2019 – Project Complete ASSUMPTIONS, CONSTRAINTS & DEPENDENCIES PROJECT CHARTER 5 Assumptions: Teleworker satisfaction and participation utilizing the web-based portal. Increase in overall employee satisfaction. Corporate’s programmer and IT managers on board with allowing a member of their team to work on the project. Programmer assigned equipped with creativity needed for the ideal web-based tool. 3rd Party Survey company will be within budget and accept bid. After project completion, assigning the responsibility on maintaining the web-based portal to the Windows Desktop Team. Corporate EEC willingness to work in conjunction with the TEEC. Corporate EEC & Human Resources already identified and understand the needs of the teleworkers. Portal Training completed by March 25, 2010 for Go-Live on April 1, 2019. Constraints; The availability of programmers and IT specialist to work on project team but also to continuously update and maintain the tool through project completion. Encouraging teleworkers to sign up to be a committee member and obtaining manager’s approval. Teleworker committee member’s availability for bi-weekly meetings. AHC policy & procedure technical limitations. Dependencies: TEEC activities, rewards, content, & engagement ideas are “remote employee” driven. United States Postal Service to routinely deliver items to teleworkers. Programmer & IT Managers. Project outcomes or employee satisfaction increases are dependent on the TEEC. 6. RELATED DOCUMENTS • • 7. 2018 Baton Rouge Area Chamber (BRAC) employee survey results List of EEC Activities for In-Office Employees for 2018 PROJECT ORGANIZATIONAL STRUCTURE Key stakeholders and team members by function, name and role. Function Name Role Project Sponsor Approve project and resources, strategy, and outcomes Team Member Jan Rivers, Corporate Sr. Vice President of Human Resources Kimberly Hall, HR Business Partner Jamie Schlottman, CEO Corporate VPs & Senior Directors Brandi Vilo, HR Business Partner Shelton Evans, EEC Leader Corporate EEC/Subject Matter Expert Programmer Team Member IT Specialist Team Member TEEC Leader Team Member TEEC Member Team Member Data Analyst Project Manager Stakeholder Stakeholder Project Coordinator Project Team Leader Team Member Manage project, resources, and budget Project Executive Project Executive Ensure project timeline and deliverables tracking. Be a resource for Project Team Helps to guide the TEEC PROJECT CHARTER 6 Team Member Teleworker Team Member Teleworker 8. ACRONYMNS EEC – Employment Engagement Committee TEEC – Teleworker Employment Engagement Committee BRAC – Baton Rouge Area Chamber HR – Human Resources VP – Vice President IT – Information Technologist AHC – American Health Care 9. PROJECT AUTHORIZATION Approved by Project Sponsor: Date Jan Rivers, Corporate Sr. Vice President Human Resources 1/26/2019 Approved by Project Manager: Date Kimberly Hall, Corporate HR Business Partner 1/26/2019 PROJECT CHARTER 7 References Great Place to Work. (2018). Fortune 100 best companies to work for 2018. Retrieved from: https://www.greatplacetowork.com/best-workplaces/100-best/2018 Graves, A. (2016). How to identify your first six sigma project. Six Sigma Daily. Retrieved from: https://www.sixsigmadaily.com/how-to-identify-your-first-six-sigma-project/

Tutor Answer

Robert__F
School: Rice University

Please let me know if there is anything needs to be changed or added. I will be also appreciated that you can let me know if there is any problem or you have not received the work. Please let me know if there is anything needs to be changed or added. I will be also appreciated that you can let me know if there is any problem or you have not received the work Good luck in your study and if you need any further help in your assignments, please let me know Can you please confirm if you have received the work? Once again, thanks for allowing me to help you R MESSAGE TO STUDYPOOL NO OUTLINE IS NEEDED

Running head: DMAIC: MEASURE PHASE

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DMAIC: Measure Phase
Name
Course
Date

DMAIC: MEASURE PHASE

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DMAIC: Measure Phase

The DMAIC is a commonly used approach to systematically identify, solve, and monitor
the different problems that arise during the company's operations. The present essay summarizes
the critical aspects of the measurement stage. The identified problem refers to the low
satisfaction rate of the employees working in a service company. Aware of the impact that a low
satisfaction rate has on the employee performance (Mone & London, 2018), the goal is that of
increasing the employee satisfaction rate from 5% to 8% by the end of June 2019 and to 15% by
the end of the year.
Figure 1 shows a process map summarizing the different steps undertaken during the
project to reach the target increase in the employee satisfaction rate. As observed in this process
map, the project will get divided into a total of four fundamental steps.

Figure 1. Process map of the stages involved in the project
The first of such steps consists of the measurement of the employee...

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awesome work thanks

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