LSSG Green Belt Training

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LSSG Green Belt Training
Define Getting Started - Alignment.
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DMAIC Six Sigma - Define

• The Big Picture
• Alignment
• Identify Customers
• Customer requirements and expectations for
  product or service
• Complete Charter
• Identify opportunity, project boundaries,
  leadership and team
• Understand Process
• Map business process and identify stakeholders

3
Aligning Project with Broader Goals
MISSION
STRATEGY
GOALS AND OBJECTIVES
PROJECTS
4
Alignment Mission / Purpose
Corporate Mission Statements We are ladies and
gentlemen serving ladies and gentlemen.
Ritz-Carlton People, Service, Profits
Federal Express

• Typical Organizational Mission Statement
• Our mission is to assist in designing and
  implementing a team concept of management
  throughout all levels in our plant that will
  facilitate employee involvement for the mutual
  benefit of all in achieving our goal of
  continuous improvement in safety, environment,
  quality, production and cost.

5
Alignment - Goals and Objectives
SMART ObjectivesSpecificMeasurableAttainable
ReasonableTied to Time Frame

• Unclear Project Objective
• Remove CLS data entry during Shipping Process
• Clearer Project Objective
• Reduce shipping paperwork data entry errors by
  25 by June 2000.

6
Alignment - Projects
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Project Prioritization
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Chartering a Project

• Goals
• Problem Statement
• Project and Process Mission
• Objective Statement
• Enables project owner to set expectations and
  creates ability to get buy in
• Obtain Commitment
• Set Roles and Responsibility
• Set Project Schedule
• Secondary Goals
• Acquire Resources
• Focus on Project Objective

9
Selecting the Right Project Focus

• Reduced Time
• Improved Quality
• Reduced Cost
• Improved Customer Satisfaction
• Combinations of the Above

10
Roles and Responsibilities - RASCI Chart

• Has Responsibility for decision/execution and
  making it happen. The prime mover.
• Approval required before taking action
• Support member for decision or activity
• Coaches R before plans/decisions are finalized
• Is kept Informed

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Gantt Chart - Scheduling
Schedule of Activities
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Listening to the Voices

• Voice of the
• Customer Quality, Price, Responsiveness
• Process Process Flow, Value Stream, Control,
  Capability
• Employee Satisfaction, Worth, Recognition,
  Safety
• Also remember the other stakeholders
• Owners Returns, Growth, Security
• Suppliers Involvement,Growth,Price,Stability

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Voice of Customer (VOC)
Goal - To identify how to create value to
customers

• Steps
• Collect raw data Interviews, Surveys
• Group data into themes Affinity Diagrams
• Identify underlying issues (drivers) Kano
  Analysis
• Define measurable variables (Critical-to-Quality,
  or CTQ, variables) House of Quality (HOQ)

I do not like dealing with your company
Products not delivered on time
Need 10 day lead time
VOC
5 Whys
CTQ
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Customer Satisfaction Survey
Goal to measure the quality of a product or
service

• Uses
• To identify areas which need improvement
• ways to gain back and retain customers
• To identify gaps in management and customers
  point of view
• To acquire feedback for improvement

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Qantas Airways

• Survey of Passenger Needs Order of Priority
• No lost baggage 12. Assistance with connections
• No damaged baggage 13. Being kept informed of
  delays
• Clean toilets 14. Transport to cities
• Comfortable seats 15. Accurate arrival
  information
• Prompt baggage delivery 16. Well-organized
  boarding
• Ample leg room 17. Quick/friendly airport
  check-in
• Good quality meals 18. Self-service baggage
  trolleys
• Prompt reservation service 19. On-time arrival
• Friendly/efficient cabin crew 20. Provision of
  pillows/rugs
• Clean and tidy cabin 21. Assistance with customs
• Comfortable cabin temp/humidity 22. On-time
  departures
• Source Juran Institute

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PIMS Model of Customer Satisfaction
Goal to determine the performance and importance
of key customer satisfaction drivers
Use To identify high-priority issues
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Low Performance /High Importance
High Performance/ High Importance
1
3
Importance
High Performance/Low Importance
Low Performance/Low Importance
2
1
5
3
1
Performance
Source Boston Consulting Group
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Affinity Diagrams
Goal to organize abstract thinking about a
problem
Uses To brainstorm various possibilities about
how to solve a problem or to scope project when a
team cannot clearly decide what to do next.
Group all Needs and title them
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Kano Analysis
Goal To model customer satisfaction as it
relates to product
Use To identify customer needs, determine
requirements, develop concept, or to analyze
competitive products

• Levels of customer expectations
• Dissatisfiers
• Satisfiers
• Delighters

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House of Quality
Goal to model customer requirements into
critical to quality characteristics
Use To prioritize areas for improvement or to
design new produces or services
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HOQ Example
Training Manual
7
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What is a SIPOC?
Suppliers - Provide inputs to the process Input -
Resources required by the process Input Boundary
- Specifies when the process starts Input
Requirements - What the process requires of the
inputs. Measurable, quantifiable. Process - The
activity which transforms inputs to outputs
Output Boundary - Specifies when the process
ends Outputs - Delivered products or
services Customers - Stakeholders who place the
requirements on the outputs Output Requirements -
What the customer requires of the outputs.
Measurable, quantifiable.
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Input Output Analysis - SIPOC
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Voice of the Process (VOP)

• Goal of Voice of the Process/Voice of the Data
• Eliminate Blame/Fear
• Determine if process is predictable
• Identify causes of problems

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Process Mapping
Goal to understand a system or a process
Use To identify customers/supplier
relationships, value-added work, potential
opportunities for improvement, and to eliminate
redundant steps
Example Order Fulfillment Process

• Environmental Analysis
• Develop RFP
• Conduct Bid Process
• Select Supplier
• Implement Supplier Change

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Process Map Example
Hospital Admittance - High Level Process Map
Administration

• Triage

Pre- Assessment
Doctor Assessment
Patient Arrival
Patient Arrival
via Paramedics
Code
1
Wait
Parametric Arrival
/
Code
Yes
(5-20 min)
(
10
-
40
min
)
1
?
Doctor Assessment
(
5
-
10
min
)
No
Code
2
Wait
(11-50 min)
(
10
-
40
min
)
Patient Arrival
Triage
/
Code
via Walk In
Administration
Determination
Been though
(
4
-
5
min
)
(
1
-
3
min
)
Admin
?
Code
3
Wait
(31-120 min)
(
40
-
120
min
)
Yes
Patient Arrival
via Drag In
End
No
Been assessed by
Code
4
Wait
doctor
?
(
120

min
)
Yes
No
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Value Stream Mapping
High level delivery path (flowchart or process
map) from customer request to delivery of product
or service includes materials, people,
information
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Service Family Analysis
Used to determine if a Product or Service Family
should be flowcharted and analyzed together
Check
-
In
Check
-
In
Prep
Prep
Patient
Patient
Schedule
Schedule
Doctor
Doctor
Pay/
Pay/
Type
Type
Appoint
-
Appoint
-
Visit
Visit
Check
Check
ment
ment
Out
Out
Chronic
Chronic
Illness
Illness
X
X
X
X
X
X
X
X
X
X
Acute
Acute
The processes seem different, but are not!
Problem
Problem
X
X
X
X
X
X
X
X
X
X
Well
Well
Person
Person
X
X
X
X
X
X
X
X
X
X
Check
-
Up
Check
-
Up
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Cost of Quality

• Prevention Cost
• Appraisal Cost

• Internal Failure
• External Failure

1-10-100 Rule
COPQ - The Language of Management
Six Sigma COQ
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The Downside of Quality Cost Analysis

• Focus on the companys costs and not the
  customers costs
• The customer suffers quality related costs as
  well!
• Return costs, wasted time, lost business,
  possible injury or death

If Six Sigmas purpose is to improve customer
satisfaction, its just plain wrong to measure
success by dollars saved. The best measure of
better quality is growing market share. Six Sigma
shouldn't be a cost reduction program.
James Harrington If
improvements do not lead to market share growth,
the organization cannot promise job security, and
downsizing will result since less people are
needed.

Anand Sharma, Quest for the Perfect
Engine
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VOE Voice of Employee
Goal to identify how to create value to the
organization and its employees

• Empower Employees
• Obtain Input from Employees
• Employees survey
• Suggestion system
• Feed back from teams
• Obtain Input from Teams
• Manage Meetings
• Roles for meeting
• Tools for effective meetings

Tools Suggestion System, Employee Surveys, Team
Process Check, Brainstorming Tools
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Empowerment
Levels of Empowerment
Just Do It!
Do It and Report Back
Make Recommendation
Ask if you can
Wait Until told
Creation of conditions within organizations
which result in the ability of individual people
to contribute their maximum potential energy,
creativity, quality efforts, and effectiveness to
achieving the mission and strategy of the
organization.

Stephen Covey
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Employee Survey Results
Strongly
Avg Score
Strongly
Disagree
Disagree
Neutral
Agree
Agree
Q
Question
28
50
13
10
0
4.0
15
Part of my job is to measure the success of the
work that I do.
17
Most of our employees conduct themselves with
honesty,
15
65
15
5
0
3.9
integrity and professionalism.
1
We often create teams to solve important problems
or to
13
68
15
3
3
3.9
improve our work processes.
15
55
25
3
3
3.8
7
Teamwork is an important part of my performance
evaluation.
18
53
23
3
5
3.8
21
I feel that the company is headed in the right
direction.
10
58
20
13
0
3.7
14
Most of the people in our company work well in
teams.
5
53
23
20
0
3.4
18
We embrace diversity of thought, ideas, and
perspective in our
6
I usually
rarely
know the purpose and agenda for upcoming
3
13
33
50
3
3.4
team meetings. ( R )
12
0
30
20
35
15
3.4
I have created flowcharts of work processes.
10
I always feel that my opinions and feelings will
be understood,
3
48
35
13
3
3.4
even if team decisions dont go my way.
8
5
30
58
8
0
3.3
I use quality tools in my work teams.
10
35
35
18
3
3.3
16
I understand the value of statistical process
control (SPC).
5
40
38
15
3
3.3
5
I am encouraged to take reasonable risks without
fear of
9
Our company mission is clear, simple and known by
everyone.
0
40
38
18
5
3.1
It inspires and guides peoples actions.
Note For presentation purposes, reverse ( R )
questions were changed to allow for ranking of
all questions together.
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Suggestion Systems

• Employee Suggestions System Implementation
• Can be the lifeblood of an organization
• Formal suggestion systems often fail
• Create open culture

In 1989, Japanese companies averaged 37 ideas per
employee, of which 87 were implemented as
compared to one idea per employee every 8 years
in the U.S. Source All You Gotta Do Is Ask by
Yorke and Bodek
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Teams
When Should a Team be Formed?

• Cross-functional expertise
• Involvement, motivation and commitment
• Integrated, unified direction
• Collective strength
• Management of complexity
• Buy-in
• Creativity
• Time

Types of Teams Functional Cross Functional Self
Managed
Definition A group of individuals who are
committed to achieve common objectives, meet
regularly to identify and solve quality problems,
work and interact openly and effectively
together, produce high quality results
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New Management Roles
Management
Create Vision Coach Employees
Secure Resources Design
New System
Customer Interaction
Resources
Employees
Remove Barriers Provide Support/Encouragement W
illingness to Deal with Sensitive Issues