RLM

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RLM Associates LLCYour Lean Six Sigma
Project Management Trainers

• Lean Six Sigma DMAIC Workshop
• Green Belt Part 2

6 s Green Belt
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The SIPOC Model.

• Start Boundary Customer places order
  Stop Boundary Customer receives order
• Suppliers Inputs Process
  Outputs Customers

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Customer Identification

• Objective is to determine who is directly
  impacted by the problem
• Looking for ROI in improvement efforts
• Identify most impacted customers
• Correcting the problem for this group generates
  the largest benefit, and can be applied to the
  other customer groups

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Who Are My Customers?

• A customer is the recipient of a product or
  service
• May be internal or external
• External customer
• pay for the product or service
• Internal customer
• utilize the same output to complete their own
  processes, ultimately supplying the output to the
  external customer

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Customer Identification Exercise
Internal External Customers Customers

1. 1. 2. 2. 3. 3. 4. 4. 5. 5.
6. 6. 7. 7.
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Critical Customer Requirements

• Objective is to determine the qualities the
  customer views as important.
• How does the customer define quality?
• What specific characteristics matter most?
• Is there a difference among customer segments?
• Which segment is the target segment?
• Must be measureable!
• Requires that we gather feedback from our
  customers

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Six Sigma Pizza Inc.
Product Quality Service Quality Price Reliabilit
y Convenience Low original price Durability Rel
iability Value Useability/Features Speed Total
costs Prestige Interraction Serviceability Tangi
bles Failure Recovery Failure Recovery
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Voice of the Customer

• Collects information from the customer directly
  through various sources
• Internal intelligence
• Outbound communications
• Inbound communications
• Casual contact
• Formal transactions
• Research

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Voice of the Customer
Typical Methods Interviews Focus
Groups Surveys Customer Complaint Data
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Critical Customer Requirements CCRs
Critical Customer Requirements
Voice of the Customer
Key Customer Issues

• Actual customer comments which reflect their
  perception of
• An attribute of a product or
• Service
• An experience with a
• product/service or delivery
• An encounter or
• experience with a business
• processes or representative
• This mower is way too hard to start
• Im always on hold or end up talking to the
  wrong person
• This package doesnt do squat

The real customer concerns, values or
expectations regarding a product or service. Void
of emotion or bias, the statement describes the
primary issue a customer may have with the
product or services. Describes the experience
surrounding the attributes of the product or
service expected or desired by the customer.
Wants the mower to start quickly and painlessly
Wants to talk to the right person quickly The
software does what the vendor said it would do
The specific and measurable expectation which a
customer has regarding a product or
service. Mower starts within two pulls on the
cord Mower starts with an effortless pull on the
cord not exceeding 24 in length Customer
reaches correct person the first time within 30
seconds (good) The software is fully operational
on the customer's existing system
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VOC to CCR
Customer Said Customer Issue Critical Customer Requirement










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Six Sigma Pizza Inc.
Multiple CCRs will require prioritization ROI
is key 1. Must Bes Unless fully functional,
customer will be dissatisfied 2. Performance
Improvement Improves competitiveness 3.
Delighters The human touch extras
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Air Travel Example
Must Bes Performance Delighters
Safe Arrival Seat Comfortable Free Upgrades
Accurate Booking XM/Sirius Satellite Wireless Internet Available for free
Luggage Arrives with Passenger Friendliness of Staff Computer Plug-ins
On-time Arrival
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Six Sigma Pizza Exercise
Must Bes Performance Delighters








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Six Sigma Pizza VOC

• Customer Complaints
• Delivery took too long to arrive
• Pizza cold when delivered
• Pizza was stuck to the top of the box
• Adding 20 tip to my group of 16 was not
  justified
• Jeff Gordon crashed in turn 3 and my pizza was
  stuck to the top of the package
• My pizza was cold when I got it home

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Six Sigma Pizza Inc.
Customer Loyalty Score over the last 12 months
Dine In Customers 52 Carry Out Customers
48 Delivery Customers 22
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Team Exercise

• Assign teams
• Complete the SIPOC Exercise for Six Sigma Pizza
  Inc.
• Complete VOC to CCR template
• Complete Prioritization Matrix
• Be prepared to present

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Six Sigma Pizza Inc.
Customer Said Customer Issue Critical Customer Requirements
Delivery took too long to arrive
Pizza was cold
Pizza was stuck to the top of the box
Jeff Gordon crashed in turn 3 and
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Six Sigma Pizza Inc.
Customer Said Customer Issue Critical Customer Requirements
Delivery took too long to arrive Timely delivery
Pizza was cold Pizza is supposed to be HOT
Pizza was stuck to the top of the box Pizza should be in one piece
Jeff Gordon crashed in turn 3 and Safe and courteous drivers
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Six Sigma Pizza Inc.
Customer Said Customer Issue Critical Customer Requirements
Delivery took too long to arrive Timely delivery Delivered in 35 minutes
Pizza was cold Pizza is supposed to be HOT 110 degrees at time of delivery
Pizza was stuck to the top of the box Pizza should be in one piece Intact not stuck to box
Jeff Gordon crashed in turn 3 and Safe and courteous drivers No accidents, tickets or complaints about drivers
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Six Sigma Pizza Inc.

• Start Boundary Customer places order
  Stop Boundary Customer receives order
• Suppliers Inputs Process
  Outputs Customers

Customer
Ingredient Suppliers
Oven Suppliers
HR Department
Marketing Department
Media


Order
Ingredients
Equipment
Staff
Coupons



Order Received
Pizza Built
Pizza Cooked
Pizza Finished
Pizza Served

Carry Out Customers
Dine in Customers
Delivery Customers





Cooked Pizza







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Document and Analyze Processes
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Functional Deployment Process

• Like the top-down process map, a functional
  deployment process map displays the steps
  depicted in a process in sequential order. The
  functional deployment process map also
  illustrates where each step is performed and who
  is involved.
• Features
• Symbols, such as those shown below, are used to
  illustrate the process flow, decision points, and
  activities performed.
• Functional deployment process maps generally
  take considerable time to prepare, but they are
  extremely useful in understanding a process prior
  to attempting improvements. They require input
  from people familiar with each area of the
  process.

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Functional Deployment Mapping
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Six Sigma Pizza Inc.
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Six Sigma Pizza Exercise

• Turn top-down flow chart in to Functional
  Deployment Map
• Hand drawn or Visio is acceptable
• Present to group
• Remember. AS IS Process!

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Quick Win Opportunities
Some processes have been neglected for so long
that a simple mapping exercise may illuminate
many easy and obvious improvement opportunities.
Conducting a common sense assessment of the
value of each step may help to identify these
opportunities, referred to as ?quick wins, or
?low hanging fruit. Teams should always be
prepared to identify and pursue quick win
opportunities the return on investment can be
very high.
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Quick Win Opportunities
Criteria for Defining an Opportunity as a Quick
Win Easy to Implement Making the change or
improvement does not require a great deal of
coordination and planning. Fast to Implement
Making the change or improvement does not require
a great deal of time. Cheap to Implement The
change or improvement does not require a large
investment of capital, of human resource or of
equipment or technology. Within the Teams
Control The team and its management are able to
gain the support of the people needed to make the
change. The scope of the change is within the
teams ability to influence.
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Qualitative Analysis

• Introduction to Improvement Criteria
• Prior to detailed measurement and analysis of a
  process, a team can often identify quick and
  simple opportunities for significant improvement.
  Sometimes these ?quick wins? are sufficient for
  accomplishing the teams improvement goals.
• Customer Value-Added
• An activity can be described as adding value for
  the customer only if
• The customer recognizes the value
• It changes the product toward something the
  customer expects
• It is done right the first time

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Qualitative Analysis

• Operational Value-Added
• An activity adds operational value if it is not
  a customer value-added activity and is
• Required to sustain the workplace ability to
  perform customer value-added activities
• Required by contract or other laws and regulation
• Required for health, safety, environmental or
  personnel development reasons
• Done right the first time

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Value Added Analysis
Examples Non-Value-Added Activities Counting
the amount of work Inspection and checking
Sorting work Logging information Checking
calculations Reviewing and approving Moving
and set-up Monitoring work Stamping Any
type of rework
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Value Added Observations

• Lets get back into your teams
• Based on everything you know so far.
• Quick Wins?
• Value Add Concerns?

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Stakeholder Management
Stakeholder Management
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Stakeholder Management
Committed Leadership is critical for
success! Questions to ask Who is the sponsor
and stakeholders? What is his/her current level
of dissatisfaction with the current state? What
data has been surfaced to create this need or
discomfort?
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Stakeholder Management

• Create and strengthen relationships which can be
  leveraged to manage the change efforts
• Manage expectations
• Establish two-way communications channel
• Develop a process to detect fearful or negative
  reactions which could hinder the change effort
• Manage resistance to change

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Who is a Stakeholder?

• Stakeholders are individuals and groups of people
  who have the ability to influence or are impacted
  by the direction and success of the project
• Customers, owners, suppliers and other business
  partners, manufacturers, team members,
  regulators, people within the process, investment
  community
• Different stakeholders can perceive the same
  changes in dramatically different ways
• Assessment of stakeholders and stakeholder issues
  are necessary to identify
• The range of interests
• Issues to be taken into consideration in
  planning change and
• To develop the vision and change process in a
  way that generates the greatest support

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Stakeholder Management
Risks of Inadequate Stakeholder Management

• Unrealistic expectations
• Stakeholders concerned over personal impact
• Rumor mill becomes the main source of
  information
• Resistance to the change effort
• Fear and confusion

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Types of Resistance in Stakeholders

• Technical Resistance stakeholders believe 6
  Sigma produces feelings of inadequacy or
  stupidity on statistical and process knowledge
• Political Resistance stakeholders see 6 Sigma as
  a loss of power and control
• Organizational Resistance stakeholders
  experience issues of pride, ego and loss of
  ownership of change initiatives
• Individual Resistance stakeholders experience
  fear and emotional paralysis as a result of high
  stress

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Supportive Stakeholder
Challenging Stakeholder

• Listens
• Positive toward the project
• Demonstrates awareness of project goals,
  approach, timeline and team members
• Enthusiastic desire to be
• involved
• Willingness to offer resources, facilities
  personal time
• Proactive to see what personal impact the
  project will have
• Voluntarily contributes ideas

• Apathetic
• Interrupts, not really interested complacent,
  why change?
• Project perceived as low priority
• Not cooperative or forthcoming
• Plainly criticala vocal opponent
• Wants nothing to do with project
• Behaves as a barrier to project implementation
  requirements
• Reluctance to talk/discuss

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Strategies to Overcome Resistance

• Technical Resistance focus on high-level
  concepts to build competencies. Then add more
  statistical theorems as knowledge base broadens
• Political Resistance address issues of perceived
  loss straight on. Look for champions to build
  consensus for 6 Sigma and change
• Organizational Resistance look for ways to allow
  the resistor greater control over the 6 Sigma
  initiatives
• Individual Resistance decrease the fear by
  increased involvement, information and education

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Communication is the Key

• Keep stakeholders aware
• and involved
• in your project
• Gate Reviews
• Update Meetings
• Gallery Walk

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Project Stakeholder Management Plan
Project Name __________________

Stakeholder Primary Needs Planned Actions Frequency of Action Who will Manage this Stakeholder? Support Needed to Execute Role










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Communication Strategy

• Communication strategy defines the message to be
  delivered and the method of delivery
• What is the message to be delivered?
• Who is the target audience?
• Is it tailored to the audience?
• Who will deliver the communications?
• When should the communications be delivered?
• How will the communications be delivered?
• How frequently should communications occur?
• How will feedback be obtained and used to
  address resistance?

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Communication for Successful Change

• Honest and simple
• Communicate early and communicate often
• Communicate with all of your change ?targets?
  be consistent
• from one audience to the next but tailor your
  message to be
• relevant
• Be open to concerns and questions from all levels
  and areas of the business affected invite
  dialogue
• Build communications to address concerns voiced
• A clear demonstration of the leaderships
  commitment to the
• change and the success of the business
• A clear description of the compelling need to
  change

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Project Communication Plan
Project Name __________________

Action/Task Objective Key Message Audience Timing Media Activity Owner










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Stakeholder Management
Change Management
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Organizational Change Management?

• Organizational Change Management is the process
  of managing change with a focus on people,
  culture, structure and process
• The goal of Organizational Change Management is
  to manage the change by demonstrating the value
  of the change and addressing any resistance
• Organizational Change Management does not
  eliminate resistance to change, it simply
  manages it

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Why is Change Management Important to the Success
of 6 Sigma Projects?

• Understanding and managing change is vitally
  important. Managing the human element will be one
  of the most challenging and dynamic components of
  your team experience.
• 6 Sigma methodology and tools are fact based and
  data driven. The project team also needs tools to
  manage one of the most important tasks of
  allgetting people to champion your project and
  accept your solutions!

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A Basic Change Model
Change can cause a mixture of thoughts and
emotions Excitement Yearning for the past
Unfocused energy Productivity
dipremember, the dip is going to happen,
however the objective is to lessen the dip, not
remove all the pain
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Transition State
The transition state is defined by the
implementation plan developed in Improve. This is
the process in which people and organizations
move from the as is to the to be. Consider
this Today I work at Chuckies, tomorrow Im
doing brain surgery What needs to be done to
get there? What skill sets, training, procedures
are required to facilitate the change?
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Change Management Roles

• Sponsor
• Person with ultimate responsibility, allocates
  resources and calls for change
• Stakeholder
• May be responsible for area being impacted
• Needs clear understanding of the change
• Willing to support the change
• May be a sponsor

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Change Management Roles

• Change Agent
• Sponsors, Stakeholders, Black Belts, Green Belts
• Create and monitor change plan
• Need to fully understand and be able to clearly
  communicate the change
• Target
• Group or groups impacted by the change
• Sponsors, stakeholders, change agents and
  customers could and would likely be targets of
  the change

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Culture Change

• Culture shapes an organizations decision
  patterns, guides its actions, and drives the
  individual behavior of all members (The way we
  do things around here).
• What are the written and unwritten rules?
• How do people behave?
• What do we believe?
• The degree of change and what people believe, how
  they behave, and the rules they follow will have
  a strong impact on the success or failure of the
  change.

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What is Required for Change?
A Compelling Need The benefits or rewards of
change are greater than the cost and risk of
change
...lighting a "burning platform" at both the
organizational and personal level
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Determine Compelling Need

• Documenting the compelling need will require the
  team to answer the following questions using data
  captured in the
• Define Phase
• Process mapping
• Qualitative Analysis
• Define Critical Customer Requirements
• Questions to Answer
• Process
• What is not working well today?
• Are inter-related process identified?
• Structure
• What are current tools/technology?
• What is the organization structure?
• Who are potential targets?
• Resources unused or underutilized?

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Validate Compelling Need

• Dissatisfaction with the current state must be
  greater than the natural resistance to change
• Validates the business opportunity and risk
• Builds the momentum needed to keep the project
  moving forward
• Establish shared recognition, by both the team
  and key stakeholders of the need and logic for
  change
• The ability to define the need for change as both
  a threat and an opportunity

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Threat Opportunity Matrix
Threats (if we dont do the project)
Opportunity (if we do the project)
This matrix helps determine the driving factors
behind the project which can then be used in
communicating the need.
Short Term Threats What are the threats if the project does not happen / if we do not do the project? Short Term Opportunities What are the short term opportunities with the proposed project?
Long Term Threats What are the threats if the project does not happen / if we do not do the project? Long Term Opportunities What are the long term opportunities with the proposed project?
Short Term
Long Term
Fill Out Each Quadrant
Focusing on the Long Term ensures involvement
beyond what can be gained from the Short Term
sense of urgency!
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Threat/Opportunity Exercise
Threats (if we dont do the project)
Opportunity (if we do the project)


Short Term
Long Term
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Twelve Key Drivers of Successful Change

• Accountability - Identifying specific roles,
  goals, and performance measures for the change
• Adaptability - Learning from, and taking action
  based on, the successful and unsuccessful change
  actions that are taken
• Communication - Influencing those who will
  sponsor, support, implement or be affected by the
  change, including the possible determination of a
  displacement plan
• Focus, Purpose, and Vision - Defining articulate
  descriptions of the technical and organizational
  compelling need and vision for the change

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Twelve Key Drivers of Successful Change

• Measurement and Results - Determining the
  measurable improvements to be achieved through
  the change, and identifying the data to be used
  to track those improvements
• Momentum - Responding to shifts in the pace of
  the implementation of change actions and
  acceptance
• Readiness - Aligning the change with the existing
  culture and work climate based on an assessment
  of the ?readiness to change? of those
  individuals, or groups of individuals, likely to
  be impacted by the change
• Recognition - Reinforcing individuals and groups
  achieving results consistent with the change, and
  determining sanctions for those who are not

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Twelve Key Drivers of Successful Change

• Skill Development - Providing training to prepare
  for and enable effective participation during and
  after the change at all levels
• Team Orientation - Using teams throughout the
  organization to manage, implement and take
  ownership for the change
• Involvement - Ensuring that those affected by the
  change participate fully in decisions and
  implementation
• Leadership Taking leadership actions through an
  infrastructure designed to promote and enable
  change

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Team Exercise

• Complete Stakeholder Management plan
• Complete Threats/Opportunities Matrix
• Complete Communication Planning

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Threat/Opportunity Exercise
Threats (if we dont do the project)
Opportunity (if we do the project)


Short Term
Long Term