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OPS/571 Operations Management

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Presentation on theme: "OPS/571 Operations Management"— Presentation transcript:

1 OPS/571 Operations Management
Six Sigma: DMAIC OPS/571 Operations Management

2 Six Sigma: DMAIC DMAIC Objectives of DMAIC Understand the process
Eliminate errors Remove slack Reduce variation Plan for continual improvement A main method used is six sigma to improve processes is DMAIC Measure Performance Analyze Opportunity Improve Control Define Opportunities DMAIC

3 Define: Define Opportunities

4 Six Sigma: DMAIC Define Opportunities Measure Performance Analyze Opportunity Improve Performance Control Performance Objective Main Activities Tools/Techniques Key Deliverables Control Chart CCR Identify improvement opportunity Develop business processes Define Customers & Stakeholders Define critical customer requirements Prepare team Assessment Employee responsibility alignment Process mapping Translate critical customer requirements Assess baseline metrics Define opportunities & measurable goals Critical Customer Requirements Team Charter Action Plan Process Maps Team Charter Process Map Before starting, it is important to define opportunities for improvement based on specific inputs There may be more opportunities to improve than resources so tradeoffs or prioritization may be required Action Plan

5 Measure: Define Opportunities

6 Six Sigma: DMAIC Measure Performance Define Opportunities Analyze Opportunity Improve Performance Control Performance Objective Main Activities Tools/Techniques Key Deliverables Process Chart Histogram CCR Identify critical measures Develop methods for collecting data Establish baseline sigma (variation) for processes Develop Measurement Plan Plot and Analyze Data Validate Measurements Determine desired performance Collect other performance items Inputs: Process Variables Outputs: Process Responses Data Collection formats & plans Define baseline performance Check sheet Process Map In the measure performance phase, it is necessary to understand where the process is starting so improvements can be measured. Develop measurement Plan includes Operational definition Identify process inputs Process Map here will include identification of input/process/output/CCR 1.1 1.2 1.3 Action Plan

7 Analyze: Analyze Opportunity

8 Six Sigma: DMAIC Analyze Opportunity Define Opportunities Measure Performance Improve Performance Control Performance Objective Main Activities Tools/Techniques Key Deliverables Control Chart Histogram Analyze Data Histogram Control charts Pareto’s Run charts Scatter Plot Identify root cause(s) Identify potential solutions Data Analysis Statement of root cause Potential solutions Stratify and Analyze Data Identify and Validate the Root Cause Identify Potential Solutions Cause & Effect Fishbone Diagram Analyzing involves the activities of getting to the root cause of the problem. There are several techniques listed here. Machine People Methods Materials Scatter Plot

9 Improve: Improve Performance

10 Six Sigma: DMAIC Improve Performance Define Opportunities Measure Performance Analyze Opportunity Control Performance Objective Main Activities Tools/Techniques Key Deliverables Cost Benefit Identify solutions Develop a Change Management Plan Communicate Improvement Strategy Statement of Solution Development of Action Plan Communicate Message of Solution using: Process Map(s) Analysis Doc’s Storyboard Impact & Benefits Evaluate and Select Solutions Determine Solution Impacts & Benefits Communicate solution to all Customers & Stakeholders Cost: Installation Spares Benefit: Productivity Savings Gantt Chart Process Map 1 Task A Finally, after all of this prep, we get to FIX SOMETHING. This is the section where many non six sigma based improvement methods start. However improvements starting without the DMA phases are often unsustainable or they “fix” only a portion of the problem 2 Task B 3 Task C Force Field Analysis Forces for idea Forces against idea

11 Control: Control Performance

12 Six Sigma: DMAIC Control Performance Define Opportunities Measure Performance Analyze Opportunity Improve Performance Objective Main Activities Tools/Techniques Key Deliverables Run Charts Executive plan Disseminate lessons learned Institute new process Determine other improvement opportunities. Process control systems Standards and procedures Training Change implementation plan Continuous improvement document Standardization Develop pilot plan Summarize experiences and lessons. Develop institutionalization of plan Identify continuous improvement opportunities. Lessons Learned 1 Poor X Process Control 2 Late K 3 Late Y After the fix, then what? The “fix” must be institutionalized so that it can be sustained. What if the leader changes or what if there is a large turn-over of staff, can the improvement be sustained? What if there is a change of computer systems, can the improvement be sustained? Change Plans CCR GAP

13 Exercise: Matching Team-Check
Descriptive Statement or Question Answer Optimize the process or performance. States the current performance level. Identify opportunity that would provide the biggest business payoff. Determine an operational definition that states the methodology to collect data and the amount of data to be collect Customer surveys indicate a high level of customer dissatisfaction, which can be quantified as a cost or loss. State how you can sustain the gains you have made. Marketing studies have been distributed. Disseminate lesson’s learned to ensure replication and standardization of performance improvements. Find the inputs that are the largest contributors to the defective performance. What is the best solution? Determine root causes for the identified gaps in performance. Define the priorities and establish the performance targets. Process Model Step 1.0 Define Opportunities 2.0 Measure Performance 3.0 Analyze Opportunity 4.0 Improve Performance 5.0 Control Performance Let’s see if you can identify what phase each of these activities fall into.

14 Exercise: Matching Team-Check Answer Key
Descriptive Statement or Question Answer Optimize the process or performance. 4 States the current performance level. 3 Identify opportunity that would provide the biggest business payoff. 1 Determine an operational definition that states the methodology to collect data and the amount of data to be collect 2 Customer surveys indicate a high level of customer dissatisfaction, which can be quantified as a cost or loss. State how you can sustain the gains you have made. 5 Marketing studies have been distributed. Disseminate lesson’s learned to ensure replication and standardization of performance improvements. Find the inputs that are the largest contributors to the defective performance. What is the best solution? Determine root causes for the identified gaps in performance. Define the priorities and establish the performance targets. Process Model Step 1.0 Define Opportunities 2.0 Measure Performance 3.0 Analyze Opportunity 4.0 Improve Performance 5.0 Control Performance And the answers are…


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