1. MGS 8020 Business Intelligence Define Jul 15, 2017

2. DMAIC Six Sigma - Define
The Big Picture
Alignment
Identify Customers
Customer requirements and expectations for product or service
Understand Process
Map business process and identify stakeholders
Complete Charter
Identify opportunity, project boundaries, leadership and team
Measure
Control
Analyze
Improve
Define

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

4. Aligning Project with Broader Goals
MISSION
STRATEGY
GOALS AND
OBJECTIVES
PROJECTS

5. 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.
MISSION STATEMENT DEVELOPMENT
Write down ideas and phrases individually
Poll ideas on board/flipchart
Clarify and combine ideas
Rank ideas
Use key ideas and write a brief mission individually
Vote to select best individual mission
Revise to incorporate other ideas
Develop action plan for organizational review
Implement
“Casico Inc. is a producer of high quality engineered steels for the production of flat rolled and construction products. Our mission is to dedicate ourselves to continuously improve our products and services to meet our customer’s requirements and attain a level of profit sufficient to let us prosper as a company.”
Mission/Values
Speak up more; be made to feel that our opinion is important
Act upon things that are wrong and follow-through
Focus on things that we can control
Measure what we do; make fact-based decisions
Use the data that we have to quickly make obvious improvements
Have a positive attitude; eliminate “not my problem” attitudes
Do the right things; know what is important and what can wait
Be prepared for meetings; use better time and project management
Infuse LSS in the entire company
Be self-sufficient in LSS

6. Alignment - Goals and Objectives
“SMART” Objectives Specific Measurable Attainable Reasonable Tied to Time Frame
Unclear Project Objective:
Remove CLS data entry during Shipping Process
Clearer Project Objective:
Reduce shipping paperwork data entry errors by 25% by June 2000.
Some Poor Problem Statements:
Shipping paperwork errors are too high thus requiring excessive rework.
Outbound freight costs are too high
Release losses are too high
Some Good Problem Statements:
Shipping paperwork errors occur at a rate of 7 per 100 orders and require 22 hours of administrative overtime per month for rework.
Outbound freight costs are $5.2 million per year and comprise 20.5% of the total cost of the product.
Release losses are $254,000 per year and the number one cause of customer complaints.

7. Perform project scoping until you cannot answer why.
Alignment - Projects
PROJECT SCOPING
Initial
Issue
Second
Level
Third ?
Why?
Perform project scoping until you cannot answer why.

8. Project Prioritization
A problem statement helps communicate why the issue is being addressed.
Just-Do-It Projects
Fast, low hanging fruit, immediate benefit
Lean Projects
Kaizen events, GB initiated, functional
DMAIC Projects
GB,BB projects depending on scope, risk, and benefits to the organization
DMADV/DFSS Projects
Re-design projects led by Black Belts with DFSS training using cross-functional teams
LSS Projects
Non-Projects
Communications to field personnel that a suggestion, complaint will not be the subject of an improvement team, and why

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

10. Process Capability
Tolerance limits (The “Voice of the Customer”) – customer requirements
Process limits (The “Voice of the Process” or The “Voice of the Data”) - based on natural (common cause) variation
Process Capability – A measure of how “capable” the process is to meet customer requirements; compares process limits to tolerance limits. There are three main elements associated with process capability – process variability (the natural range of variation of the process), the process center (mean), and the design specifications.

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

12. Voice of Customer (VOC)
Goal - To identify how to create value to customers
Steps:
Collect raw data – Interviews, Surveys
Group data into themes
Identify underlying issues (drivers) – Kano Analysis
Define measurable variables (Critical-to-Quality, or CTQ, variables)
“I do not like dealing
with your company”
Products not
delivered on time
Need 10 day
lead time
VOC
5 Whys
CTQ

13. Customer Satisfaction Survey
Goal: to measure the quality of a product or service
Uses:
To identify areas which need improvement
ways to gain back and retain customers
To identify gaps in management and customer’s point of view
To acquire feedback for improvement

14. PIMS Model of Customer Satisfaction
Goal: to determine the performance and importance of key customer satisfaction drivers
Use: To identify high-priority issues 5
Question ’
Importance
Performance 1 2 3 4 5 6
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

15. Customer Satisfaction Customer Dissatisfaction
Kano Analysis
Goal: To model customer satisfaction as it relates to product
Use: To identify customer needs, determine requirements,
develop concept, or to analyze competitive products
Customer Satisfaction
Customer Dissatisfaction
Delighters
Satisfiers
Dissatisfies
High Performance
Low performance
Separates features into dimensions
Levels of customer expectations
Dissatisfiers
Satisfiers
Delighters
Can you give examples of each?
Article on kano available at:
Dissatisfies, also known as “must-be,” “basic,” or “expected” characteristics
Satisfiers, also known as “one-dimensional” or “straight-line" characteristics
Delighters, also known as “attractive” or “exciting” characteristics
6 common Kano categories
One-way (O)— User satisfaction is proportional to the performance of the feature; the lower the performance, the lower the user satisfaction; the higher the performance, the higher the user satisfaction.
Must-be (M)— User satisfaction is not proportional to the performance of the feature; the lower the performance, the lower the user satisfaction, but high performance creates feelings of indifference to the feature.
Delighters (A)— Again, user satisfaction is not proportional to the performance of the feature; low levels of performance create feelings of indifference to the feature, but high levels of performance create feelings of delight to the feature.
Indifferent (I)— User does not care about the feature.
Questionable (Q)— User response does not make sense (e.g., delighted if feature is present and delighted if feature is absent).
Reverse (R)— User offers responses opposite the responses expected by individuals conducting the Kano survey (e.g., "do not like it" if feature is present and "delighted" if feature is absent).
Lessons From the Model
Customers have different levels of satisfaction
Success = respond to customer complaints
Success = proactive actions toward customer satisfaction

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

17. 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
Process Activity from the Customer Perspective
Direct Value Add
Non-Value Add But Necessary
Non-Value Add V

18. S I P O C What is a SIPOC? Suppliers Input Process Outputs Customers
Input Boundary
Output Boundary
Requirements
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.

19. Input Output Analysis - SIPOC

20. 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
Shipping
Sourcing
Packaging
Customer Service
Inputs
Outputs
Environmental Analysis
Develop RFP
Conduct Bid Process
Select Supplier
Implement Supplier Change
Understand a system or process
Verify or clarify work processes

21. Value Stream Mapping
High level delivery path (flowchart or process map) from customer request to delivery of product or service – includes materials, people, information

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

23. 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
Process Name
Product/ Service Description
Objective
Project Scope Statement
Assumptions/ Constraints/ Risk
Benefits
Schedule
Project Name
Business Unit
Department
Start Date
Project Budget
Contact Information
Project Stakeholder
Phone number
Name
Project Champion
Process Owner
Black/ Green Belt
Team Members
Project Y
Baseline
Forecast
Select and define the project after process analysis and evaluation. Describe boundaries of the project and how to measure. Suggested project selection criteria:
Narrow in scope
Will improve the process in the immediate future (based on estimated COPQ)
Select Project Team Form Teams and Identify Project Roles
Analyze project about to start
Assign roles and responsibilities for project
Communicate the following information to the Project Team in written form:
The definition, scope and measures of the project and why this is important.
The current process behavior – include charts for the process measures.
The customer – internal and/or external – requirements.
The reporting structure between the Project Team and Management Team and frequency of milestone reporting.
Any constraints that may impact the recommendations for process improvements, such as number of people, resources needed and when team can meet.
Their authority to requisition data and experts for consultation.
How much leeway the team has to make process changes without consulting the Management Team .
Project teams need a high level of autonomy. If they always need to check with the Management Team then something is wrong – problem scope may be too big.
The deliverables at the conclusion of the project.
Timeline for the completion of the project.
Meet to develop project mission

24. Gannt Chart - Scheduling
Schedule of Activities