Measure Phase Lean Six Sigma Measure Phase Tollgate Review.

Measure Phase Lean Six Sigma Measure Phase Tollgate Review

Lean Six Sigma DMAIC Tools and Activities
Review Project Charter Validate High-Level Value Stream Map and Scope Validate Voice of the Customer & Voice of the Business Validate Problem Statement and Goals Validate Financial Benefits Create Communication Plan Select and Launch Team Develop Project Schedule Complete Define Tollgate Value Stream Map Flow Identify Key Input, Process and Output Metrics Develop Operational Definitions Develop Data Collection Plan Validate Measurement System Collect Baseline Data Determine Process Capability Complete Measure Tollgate Identify Root Causes Reduce List of Potential Root Causes Confirm Root Cause to Output Relationship Estimate Impact of Root Causes on Key Outputs Prioritize Root Causes Value-Add Analysis Takt Rate Analysis Quick Wins Statistical Analysis Complete Analyze Tollgate Develop Potential Solutions Evaluate, Select, and Optimize Best Solutions Develop ‘To-Be’ Value Stream Map(s) Develop and Implement Pilot Solution Implement 5s Program Develop Full Scale Implementation Plan Cost/Benefit Analysis Benchmarking Complete Improve Tollgate Develop SOP’s, Training Plan & Process Controls Implement Solution and Ongoing Process Measurements Confirm Attainment of Project Goals Identify Project Replication Opportunities Training Complete Control Tollgate Transition Project to Process Owner Define Measure Analyze Improve Control Project Charter Voice of the Customer and Kano Analysis SIPOC Map Project Valuation/ROIC Analysis Tools RACI and Quad Charts Stakeholder Analysis Communication Plan Effective Meeting Tools Inquiry and Advocacy Skills Time Lines, Milestones, and Gantt Charting Pareto Analysis Value Stream Mapping Process Cycle Efficiency/Little’s Law Operational Definitions Data Collection Plan Statistical Sampling Measurement System Analysis (MSA) Gage R&R Kappa Studies Control Charts Spaghetti Diagrams Histograms Normality Test Process Capability Analysis Process Constraint ID and Takt Time Analysis Cause & Effect Analysis FMEA Hypothesis Tests/Conf. Intervals Simple & Multiple Regression ANOVA Components of Variation Conquering Product and Process Complexity Queuing Theory Replenishment Pull/Kanban Stocking Strategy Process Flow Improvement Process Balancing Analytical Batch Sizing Total Productive Maintenance Design of Experiments (DOE) Solution Selection Matrix Piloting and Simulation Work Control System Setup reduction Pugh Matrix Pull System Mistake-Proofing/ Zero Defects Standard Operating Procedures (SOP’s) Process Control Plans Visual Process Control Tools MGPP Statistical Process Controls (SPC) Solution Replication Visual Workplace Metrics Project Transition Model Team Feedback Session Kaizen Events Targeted in Measure to Accelerate Results International Standards for Lean Six Sigma

Improve Summary Enter Key Slide Take Away (Key Point) Here
Solution Selection Criteria Pilot and Implementation Plan Choose solutions that will impact the root cause's) heavily, which will in turn reduce your problem. You do not want to implement a dozen solutions, each of which makes only a small difference in the bottom line. Note: Benefits realization will begin upon improvement implementation, unless approved by Financial Representatives Solution: What are the solutions for implementation? What solutions were considered in the Solution Selection Matrix? What were the criteria? What were the results of the Pugh matrix, if used? Has the process owner been involved in the review of recommended actions? What changes are recommended? What techniques were used to evaluate the risk of the chosen solutions? What changes were made? What efforts were made to optimize the solution and what were the results? What are the initial thoughts on a Control Plan? - Identify all opportunities for continuous improvement Reduction of effort Reduction of time Reduction of space Reduction of cost Reduction of mistakes Increasing customer satisfaction - Improve the process through a variety of Lean tools/techniques: Value Stream Mapping Time Trap Identification Heijunka/Leveling/Stability (S&OP) Kaizen/Continuous Improvement Kaikaku/Innovation Jidoka/Autonomation Kanban/Just In Time 5S Organization Stocking Strategy Generic & Replenishment Pull Systems MRP/Pull System integration Single Minute Exchange of Die (SMED) Visual Tools, Visual Processes Cellular Layouts & Line Balancing Standardized Work Total Productive Maintenance (TPM) Make vs Buy, Distribution Mgmt, Vert Integ Strategic Sourcing, Tactical Purchasing Faster feedback on process performance (increased learning cycles) Improved first pass yield (results in improved productivity) Improved process stability (results in improved throughput) Uncovers process deficiencies (forces problem resolution) Less in-process and buffer inventories (reduced risk) Improved customer satisfaction (flexibility and responsiveness) Check for the Ripple Effect and Unintended Consequences Even a small change in a business process can affect many other processes. During a pilot, the team may need to double-check for this “ripple” effect. Impact on Other Processes Make sure the new design has not somehow caused problems for your internal supplier and customer processes. People working in such support areas as planning, customer service, operations, and quality control need to know that you are doing things differently so they can adjust their work where necessary. Check administrative processes such as personnel, finance, or accounting. If one of your solutions, for example, is to cross-train people in several skills, the human resources department may need to revise job descriptions. The pilot plan should be designed to include steps to analyze the results. Root causes of performance gaps may need to be analyzed or redesigned. Summarizing Pilot Conclusions Once all the pilot data has been collected and the results verified, the team can determine the next steps toward solution implementation. Only after an objective and comprehensive assessment of the pilot can responsible “next step” decisions be made. Some questions a team should ask upon the completion of a pilot to help guide them toward identification of the proper next steps are: Did pilot have anticipated results? Was the plan for conducting the pilot effective? What improvements can we make to the solution? Can the solution be implemented “as-is”? Should it be? Can the solution remain in place at the pilot location? What lessons learned and best practices can we apply during solution implementation? Did the solution achieve the required design goals? Don’t skip the pilot! Define successful criteria before testing the pilot Agree on a list of critical parameters to continue Document all test results and control procedures Train all process participants How the solution was determined: What was the solution selection tool used? What project management tools were used? Cost/benefit analysis? Include any other tools or methods used ? Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Descriptive Statistics Process Capability
(Baseline) Process capability analysis is not possible to create with discrete data – use continuous data if you can! The process capability analysis shown here is only one way to show data results. Others include histogram, Capability Six-pack, and Descriptive Statistics are all other acceptable methods. Capability Analysis What is the new capability of key Output Variables and root causes? What is the final capability of the KPOVs? How reliable are your capability estimates? (Is the process stable, unimodal and normal?) What is the final capability of the KPIVs? Why A process is said to be in control if no special causes of variation exist. A measure of process capability can provide insight into issues of mean shift of the process or excessive variability. These insights can be used to improve process capability. What Process capability/performance studies assess a process relative to specification criteria. Cp is the capability index that is defined as the tolerance width divided by the process capability, irrespective of process centering. Cpk is the capability index that accounts for process centering. How Create a control chart. Calculate standard deviation. Calculate Cp: Cp = (USL-LSL)/6s Calculate Cpk: Cpk = min[(USL-m)/3s,(m-LSL)/3s] (Improved) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Enter Key Slide Take Away (Key Point) Here
FMEA Risk Analysis recommended actions (Key Speaking Points) Rating Index Total Current RPN Risk If an FMEA was used: Who helped develop the FMEA? What ranking did you use for Severity, Occurrence and Detection? Show the Pareto of high Risk Priority Numbers (RPN). What actions have you taken with inputs that have high RPNs? What is the plan for implementation of FMEA recommendations? - Stands for Failure Modes and Effects Analysis. - FMEA is a structured approach to: Identifying the areas and ways in which a process or system can fail (failure mode) Estimating risk associated with specific causes Identifying and prioritizing the actions that should be taken to reduce those risks Evaluating and documenting proposed process plans or current control plans FMEA is used to reduce risk, and therefore unintended consequences, in the implementation. When to Conduct an FMEA Early in the process design or improvement development. When new systems, products, and processes are being designed. When existing designs or processes are being changed. When carry-over designs are used in new applications. After system, product, or process functions are defined, but before beginning detailed final design. When the design concept has been decided. FMEA Procedure 1. For each process step (start with steps that give highest value) determine the ways in which the input to the step or the function of the step can go wrong (failure mode). 2. For each failure mode, determine effects. Select a severity rating for each effect (1-10 scale). 3. Identify potential causes of each failure mode. Select an occurrence rating for each cause (1-10 scale). 4. List current monitoring and controls for each cause. Select a detection rating for each cause (1-10 scale). 5. Calculate the ‘Risk Priority Number (RPN)’ by multiplying the three ratings by each other. 6. Develop recommended actions, assign responsible persons, and note actions taken. In general: Prioritize actions so the highest RPNs are attended to first, with the exception that Any failure with a severity rating of 10 is worked on first. 7. Implement solutions from the first round of actions, create a re-prioritized fmea and analyze for further necessary action. Severity Importance of the effect on customer requirements. Often can’t do anything about this without fundamentally changing the system or design. Occurrence Frequency with which a given cause occurs and creates failure modes (or probability it will occur). Detection The ability of the current monitoring and control method to detect before or after occurrence of a given cause Rating Scales and RPN Rating formats can be quantitative or qualitative. Two common scales used are 1-5 or 1-10. The 1-5 scale makes it easier for team members to decide on scores (fewer choices). The 1-10 scale allows for greater precision in estimates and provides for wider variation in team members’ perceptions (most commonly used). Typically: 1 = Not severe, not likely to occur or likely to detect 10 = Very severe, very likely to occur or not likely to detect RPN is a product of the severity, occurrence and detection ratings. (Severity) x (Occurrence) x (Detection) = RPN (maximum of 1000) By focusing on the “Meaningful Many”: - We use FMEA to ensure error-free execution in designing products and services as well as the processes and tasks necessary for producing/delivering them Anticipating errors to make processes “fail-safe” Allows for preventive actions to be a part of the process design - Creating alarm signals to catch defects as or before they occur Initiating individual accountability to “double-check” work before handing off to another step in the process An FMEA: Identifies the ways in which a product, service or process can fail Estimates the risk associated with specific causes Prioritizes the actions that should be taken to reduce risk Documents the actions taken Highlights where further actions would result in further risk reduction - FMEA is a team tool There are three different types of FMEAs System Design Process Inputs to the FMEA include several other Black Belt tools What is a Risk Standards Matrix? Simple but effective tool for identifying potential problems Prompts a BB to consider the ways in which the implementation could impact: Customers Cost Safety IT Environment Other Areas Why do an EMEA? To identify and prioritize parts of the product or process that need improvement To improve the quality, reliability and safety of products and services To increase customer satisfaction To document and track actions taken to reduce risk When to do an EMEA: When new products or services are being designed When a process is created, improved, or redesigned When existing products, services, or processes are used in new ways or in new environments To expose potential problems in the solution process Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

RACI Chart R = Responsible – The person who performs the action/task. A = Accountable – The person who is held accountable that the action/task is completed. C = Consulted – The person(s) who is consulted before performing the action/task. I = Informed – The person(s) who is informed after performing the action/task. Step Action/Task Responsible Accountable Consulted Informed 1 2 3 4 5 6 7 8 9 10 R = Responsible – The person who performs the action/task. A = Accountable – The person who is held accountable that the action/task is completed. C = Consulted – The person(s) who is consulted before performing the action/task. I = Informed – The person(s) who is informed after performing the action/task. Accountable: The individual who has ultimate accountability and authority. There is only one accountable (A) to each task/activity. Accountability is assigned at the lowest level and implied at higher levels Accountability can not be delegated Responsible: Individual/s who perform a task/activity; the doer, responsible for action/implementation. The degree of responsibility is defined by the Accountable person. Responsibility can be shared. While Accountability can NOT be delegated, Responsibility can be delegated. Consulted: The individuals to be consulted prior to a final decision or action is taken. Two-way communication. Informed: The individuals that need to be informed after a decision or action is taken Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Control / Response & Escalation Plan
Process Escalation Map Part of “Managing By Fact” in many organizations, is to consistently review key indices or dashboards regarding critical core and enabling processes. - Identify process owner(s) - Develop initial process management charts - Set up regular, on-going review cycle - Determine criteria for process dashboards - Establish mechanism for ensuring performance to business goals - Update measures to meet customer requirements - Ensure process stability through “quick response” - Institutionalize Control Plan – How will you ensure that the Process benefit will be retained? Control Planning Have you completed your final FMEA with revised ratings? Is there a control plan in place for each KPIV? How was it developed? Has it been approved? How does this control plan insure that the process will perform at the improved level? Who owns the responsibility to ensure continued performance? Procedures What key procedures are required to maintain control? hat are the corrective action procedures (Reaction Plan)? Have you updated SOPs, if applicable? Were ISO methods followed? Who owns the process instruction manual? Training Has personnel training been performed and documented? Has the process owner been properly trained to support long term performance? How was the process knowledge transferred to area and support personnel? How will new personnel be trained in process operation and reliability? Is there a method in place to ensure proper training? Control Chart Monitoring What specifically is to be controlled? What precisely are the Input Variables specifications? Who is responsible for control for each variable and why is control needed? What type of control chart is used for monitoring? Who interprets the chart(s) and takes action? Visual Process What visual controls are included in the control plan (5S, SOP, safety, special instruction)? Are the area personnel involved with placement and implementation of the visual controls? Automated Process Control Are there KPIVs or KPOVs that could benefit from automated process control? If yes, what type of control? How much reduction in variation were you able to get? How much reduction in process variation would you expect by automating the control? Data Monitor checks the dashboard and learns that I-MR and is out of control Escalates to the Process Owner & Black Belt for special cause identification FMEA is used to update any failure/actions or improvements not recorded Supplier is contacted to review defects and actions Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Business Impact State financial impact of future project leverage opportunities Separate “hard or Type 1” from “soft Type 2 or 3” dollars Annual Estimate Replicated Estimate Revenue Enhancement Type 1: ? Type 2: ? Type 3: ? Expenses Reduction Loss Reduction Cost Avoidance Total Savings Lean 6 Sigma Project Documentation General Guidance The project charter templates provided will document both the functional and financial goals to be realized. When the Project Charter portion of the project is documented sufficiently for a Black Belt to begin work, a copy of the documentation can be placed in the Project Hopper. When a Black Belt begins work on a particular project, that project’s Project Charter should be removed from the Project Hopper as it is no longer available to be worked. The financial portion of the Project Charter should initially be completed by the Project Sponsor and the Financial Representative to show projected savings. This portion should also be updated as the project progresses to clearly show true savings achieved. When the project is completed, the Financial Representative should validate that the project savings were achieved as recorded. The financial portion (now validated savings) should then be forwarded to Deployment Champion. ***************************************************************************************************** State financial impact of project Expenses Investments (inventory, capital, A/R) Budget Separate “hard” from “soft” dollars State financial impact of future project leverage opportunities Benefits – Will the project make a significant impact on the Business? Is the project driven by the Business strategy? What are the expected Business Benefits of the project? What are the critical assumptions in the benefit analysis? Does the Financial Manager endorse the Benefit calculation? Definitions Growth = Percentage Increase in Revenue Return on Invested Capital: If a shareholder invests a dollar, how much will be earned each year? Return = Profit After Tax (Net Operating Profit After Tax, NOPAT) Invested Capital = Working Capital + Plant, Property & Equip. (PP&E) Return on Invested Capital = Profit After Tax/Invested Capital Cost of Capital = How Much a Company Pays for Its Capital ~ 12% Compare the Cost of Capital to the Internal Rate of Return (IRR) of a project’s cash flows (more on this later) Finding the Financial Impact We must be able to satisfactorily demonstrate the impact of our improvement project activities Typically, there are at least four categories of impact: “Green” dollars positive dollars that exit or enter the organization, that appear on the profit and loss (P&L) statement (Measurable) Redeployment of resources – people or equipment no P&L impact, versus a baseline, but reduces cost needed to support business growth, realized immediately upon redeployment (Can be difficult to measure) Cost avoidance, reduces the need to add cost to support business growth, ex. capacity improvement. Realized when the business grows (Can be difficult to measure with certainty) Strategic. May be no “hard” financial impact, but the right thing to do in terms of the future of the business. (Very difficult to measure the true impact) Examples of Potential Revenue Enhancement: New sales of existing or new products Increased retention of profitable customers Examples of Potential Cost Reduction: Price increases Labor Cost – Reduced number of hand-offs Servicing Cost – Decreased number of quality related service calls Rework – Less defective work due to improving quality at the source of the defect Examples of Potential Capital Reduction Supplies – Decreased volume of inventory due to process improvements Cost of Capital – Decreased time of service to customer payment Occupancy – Decreased storage area due to quicker shipping times Direct Costs – These are costs that can be traced directly to providing a service. For example direct labor charges to include wage and benefit costs. Also, any cost associated with materials or service maintenance . One Time Costs – These are costs which are incurred only once. Examples include new equipment or facilities, initial training, initial software installation and configuration, etc. On-Going Costs – These are costs which will continuously be incurred. Examples included labor, on-going training, supplies and other operating costs. If you must prove the bottom line impact of a project, reduce the dollars that exit the organization or increase the Revenue entering the organization! Make sure that all stakeholders agree on the project’s impact and how it will be measured in financial terms! Regularly seek the advice and input of members of the financial community, especially on the assumptions to make and means of calculating the stream of financial benefits from an improvement project. Each project should have a financial rep (a person from outside the team) to assist and review financial benefits calculations. Economic Profit can be impacted in three ways: Revenue Growth Volume increases due to improved customer satisfaction, faster delivery, differentiated features, etc. Cost Reduction Purchase items and services Waste elimination Make vs. Buy Labor reduction Productivity improvements Scrap/Rework reductions Capital Reduction Inventory Accounts Receivables Assets While overall project benefits are frequently a combination of all three levels, it is important to understand the distinction. Lean Six Sigma Financial Principles Every step is taken to ensure the integrity and accuracy of the data. Processes developed to calculate and assess benefits must be simple and not overly complex. Benefits are measured using established financial, cost and investment methodologies/principles/practices/guidelines of the company as appropriate. Impacts on internal controls are proactively identified and communicated. The primary reporting metric for Lean Six Sigma projects is the impact on Economic Profit. All benefits and costs should be reported in $US dollars using the current year plan exchange rate. All organizations consistently define, quantify, measure and report Lean Six Sigma projects in the tracking system. Lean Six Sigma metrics complements, but does not replace, other critical business measures and analyses. Black Belt, Project Sponsor and Financial Representative need to form a partnership with the Financial Representative acting as a key consultant to the project team Roles and Responsibilities Black Belt/Project Sponsor Define current operational process and establish baseline with metrics and data Determine process improvement relative to baseline and metrics Define logic for benefits Determine type of benefits Calculate financial benefit outlook Support validation of benefits during realization Ensure benefits info is included in DMS by Measure tollgate Ensure Type 1 savings are tracked to BLI and customers are in agreement by Control Certifies savings Financial Representative Review and consult on expected benefit projections at Define phase Validate financial benefits before Control tollgate Validate actual project benefits during realization Expertise solicited only at critical points Available to advise Project Sponsor if needed during tollgate reviews Charter Benefits Review (before Launch): Financial Representative should be consulted with on the expected Benefits identified in the Project Charter Benefits Realization Schedule Review (before Implementation) Financial Representative validates the Tracking Methodology and Benefit Realization Schedule (the monthly Benefit projection) prior to implementation. Financial representatives review and consult on expected benefit projections at Define phase. BBs, ensure benefits info is included in Measure. This will be added to the measure tollgate checklist. FR Validate financial benefits before Control tollgate. Black/Green Belt Certification Review (after 2 months of realization) Financial Representative reviews the Benefits calculations made to-date by the Process Owner. PS ensure actual project benefits are identified during realization. FR Validate actual project benefits during realization. Project Validation Review (after 6 months of realization) Financial Rep reviews the Benefits calculations made to-date by the Process Owner. Realization Review (after 12 months of realization) Financial Rep reviews the final Benefits calculations made by the Process Owner. Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Business Impact Details
Type 1: Describe the chain of causality that shows how you determined the Type 1 savings. (tell the story with cause–effect relationships, on how the proposed change should create the desired financial result (savings) in your project ) Show the financial calculation savings and assumptions used. Assumption #1 (i.e. source of data, clear Operational Definitions?) Assumption #2 (i.e. hourly rate + incremental benefit cost + travel) Type 2: Describe the chain of causality that shows how you determined the Type 2 savings. (tell the story with cause–effect relationships, on how the proposed change should create the desired financial result (savings) in your project ) Assumption #1 (i.e. Labor rate used, period of time, etc…) Assumption #2 (i.e. contractor hrs or FTE, source of data, etc…) Describe the Type 3 Business Impact(s) areas and how these were measured Assumption #1 (i.e. project is driven by the Business strategy?) Assumption #2 (i.e. Customer service rating, employee moral, etc…) Other Questions Stakeholders agree on the project’s impact and how it will be measured in financial terms? What steps were taken to ensure the integrity & accuracy of the data? Has the project tracking worksheet been updated? Describe the chain of causality that shows how you determined the Type 1 savings. (tell the story on how you will capture these savings in your project) Show the Type 1 financial calculation savings and assumptions used. Assumption #1 (i.e. source of data, clear Operational Definitions?) Assumption #2 (i.e. hourly rate + incremental benefit cost + travel) Describe the chain of causality that shows how you determined the Type 2 savings. (tell the story on how you will capture these savings in your project) Show the Type 2 financial calculation savings and assumptions used. Assumption #1 (i.e. Labor rate used, period of time, etc…) Assumption #2 (i.e. contractor hrs or FTE, source of data, etc…) Describe the Type 3 Business Impact(s) areas and how these were measured Assumption #1 (i.e project is driven by the Business strategy?) Assumption #2 (i.e. Customer service rating, employee moral, etc…) Other Questions All stakeholders agree on the project’s impact and how it will be measured in financial terms? What steps were taken to ensure the integrity & accuracy of the data? Has the project tracking worksheet been updated? ************************************************************************** Validating financial benefit projections is one of the most important, but challenging, tasks to perform in validating the Project Charter Often the financial benefit projections written in the “Business Impact” section of the Project Charter are notional “rough order of magnitude (ROM)” or “back of the envelope” estimates without much analytical rigor applied in the calculations The “Future Reality Tree” is a tool we can use to analyze and document the “chain of causality” from the operationally-oriented “Goal Statement” to the financial dollar savings/benefits stated in the “Business Impact” section of the Project Charter The Future Reality Tree is a graphical approach to map out the cause–effect relationships which form the basis of the change you intend to make. It shows in clear, cause–effect relationships, how the proposed change should create the desired result, surfacing potential side effects along the way. In Lean Six Sigma, we use it to: Define the thinking behind our proposed project Confirm the logic of the project Assess the valuation of the project Surface risk issues *************************************************************************************************** Identify the basic improvements desired from the proposed project (intended to produce the desired result). Avoid identifying specific solutions; rather identify the nature of the improvement desired. Make sure that the cause–effect relationship is clear and self-evident. Avoid making “trans-Atlantic leaps” but rather take “baby steps”. If you find yourself thinking of effects that stretch far from the causes, insert intermediate steps Review with one or more knowledgeable associates to ensure clarity, correctness and completeness. Strive for clarity, correctness and completeness Use non-offensive wording Build shared understanding Make sure you are satisfied that the solutions really will produce the desired results (and the financial impact!) Welcome negative branches, then deal with them When objections are raised, try to determine the specific logic that is being challenged. ************************************************************************************ Valid Objections Clarity – I don’t understand what you mean Entity Existence – I don’t believe that “A” happens Cause Existence – I don’t believe that “A” causes “B” Additional Effect – But “A” also causes “D” Cause Insufficiency – But “A” won’t cause “B” unless “C” happens too Additional Cause – But “B” is also caused by “E” Circular Reasoning – How can “A” cause “B” if “B” causes “A” Comptrollers Role Provide input regarding project viability from a financial perspective What type of savings are expected? What effort will be required to capture them? Will investment be required? Review actual project savings claims as project approaches completion Are the savings numbers accurate? Can we capture them in a meaningful way? Audit actual results in the ‘Sustain’ stage Have the actual savings been realized? If no, what is the recovery plan? Types of Benefits Type I: Hard savings that can be readily identified in budget terms and can be used for recapitalization Type II: Resources that are freed up to move to value-added work TYPE III: Intangible benefits Type I benefits have a clear impact on the NAVSUP budget. The relationship between the project and the benefits are direct. Type I benefits result in an adjustment to the business plan and are permanent. Examples of Type I Benefits: Reduction in labor costs and billets Non-labor reductions (I.e., NMCI seats, supplies) Space reductions that result in termination of a lease Scrap or material reductions Contract cost reductions Type I reductions must be a primary goal in order for NAVSUP to deal with solvency concerns and accomplish required efficiencies Booking Manpower Savings Manpower savings will be booked in the fiscal year in which the savings are actually realized The booking of manpower savings must begin no later than the fiscal year after project completion Projects must focus on current savings; deferring manpower savings into the future defeats the purpose of Lean 6 Sigma Type II benefits do not have an immediate impact on available funds. Type II benefits are assets or resources that are freed up and may be re-utilized on value-added work. Type II benefits may result in future savings Examples of Type II Benefits: Floor space is reduced, but building is not vacated Allows reallocation of the space Future resource requirements are reduced in existing budget documentation Type III benefits are mainly intangible and cannot be captured in the budget or other documentation. Examples of Type III Benefits: Customer Satisfaction increases An expenditure that was not budgeted is avoided Employees are more satisfied Response time is improved ********************************************************************* Projects requiring investments No project requiring investment will be approved unless: Type I and II project savings will exceed investment cost within 1 year Projects that produce savings without requiring investment are preferred Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Current Status Key actions completed Issues Lessons learned Communication, team building, organizational activities Status Plan Weekly planning tool used to coordinate a work team’s activities. Limited look-ahead (usually 2 weeks), Black Belt/team can decide window Plan work with Black Belt and team – leverage and focus Shows activities, issues, and need-helps correlated to deliverables/timeline Separated into work planning, status, issues, need-helps Usually created at the end of each week. Typical scenario: Stream lead coordinates with client counter-part Thursday prior to departing account, after coordination with their team Stream lead provides status and requests to team in Friday Stat/plan meeting Standardize approach for identifying deliverables, tasks, etc. – need same “look and feel” across teams Proactively assign accountabilities and to-do’s as team reviews Teams have a propensity to use this tool as simply a reporting mechanism rather than a tool for leverage and planning In team meetings, select items that are meaningful to that team for review and planning Ensure tasks’ relevance to deliverables is clear Must be overlaid on environment of accountability Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Next Steps Key actions Planned Lean Six Sigma Tool use Questions to answer Barrier/risk mitigation activities Successful project management requires an understanding of: Individual Team Roles Basic Skills and Tools Project Budget Negotiation Skills Communications Forming and Leading High-Performing Teams Team Meetings Managing Conflict Time Management Skills Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Lessons Learned ? Every improvement effort offers a lesson. It is what we do with these lessons that matters. For successful projects, we want to document our efforts and conclusions to repeat the success. If not successful, we want to document what went wrong to prevent repeating the same mistakes. The availability of this type of information can greatly accelerate future efforts. Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Project Ownership Team Enter Key Slide Take Away (Key Point) Here
Project Contributors Steering Team Support Team <Name>: <Contribution> <Name>: <Contribution> Project Ownership Team Deployment Team <Name>: <Contribution> <Name>: <Contribution> By definition, Critical and Essential Stakeholders MUST have representation on the CORE project team Project Sponsors MUST come from the Critical Stakeholder group(s) Core Team Members MUST come from the group of Critical and Essential Stakeholders (i.e. the Core Team is only made up of representatives from the Critical and Essential Stakeholders) Non-Essential Stakeholders CANNOT be involved as Project Sponsor or Core Team Members, but may be involved as Extended Team Members Core Team Members and Project Sponsors must come from the Critical and Essential Stakeholders group Typically 3-5 Team Members on the Core Team for a DMAIC project, each contributing 15%-25% time commitment Too many team members is restrictive and could also be early indicator of scope issues Extended Team Members will be drawn from the remaining Stakeholder community Key Team Member Activities Participate in Writing of Project Charters Due to their process knowledge, they may be asked to participate in the writing of potential project charters Participate on Project Teams Represent the organizations from which they come (the Stakeholder groups), not themselves Communicate actively with the Stakeholder groups which they represent, to provide a ‘voice’ for the Stakeholder group on the project team Participate in the execution of the DMAIC process, as led by a Black Belt or Green Belt Become experts in the basic tools, such as flowcharting, fishbone diagrams and Value Analysis, and participate in their execution Participate in Tollgate Reviews Sustain and Extend Project Results As key participants in the process, are responsible for implementing the changes recommended from the project and insuring their success Look for opportunities to replicate the project results to other areas of the organization Participate on projects part-time in their function or area of responsibility Core Team Members – 15%-25% time commitment, during the duration of the project. Extended Team Members – 1%-10% time commitment during the duration of the project Often bring specific Subject Matter Expertise (called SME’s) Represent the Essential Stakeholders in the process (not their own interests) Responsible for communicating project status/progress with Essential Stakeholder group they represent and soliciting their involvement/feedback on solution direction. Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Sign Off Once the project is complete and has been reviewed by the Green Belt/Black Belt or other Quality mentor, the project should be reviewed with Deployment Champion, Project Sponsor, Process Owner, Master Black Belt and other project or process stakeholders. In addition, financial benefits of the project (or the method used to estimate financial benefits) should be confirmed by your Process Owner and/or finance representative. Policies & Procedures for the Improve & Control phases were documented & communicated on MM/DD/YY I understand the New Policies and Procedures I understand and take responsibility for monitoring the Defect Measurements as delineated in the Control Plan I will report the progress on this sub-process on a regular basis to the customer I have reviewed this project’s financial benefits with the Champion, Sponsor, and Finance I understand the corrective action procedure and am responsible for ensuring that action items are completed to hold the gains and capture the financial benefits Project Management: - Does the Process Owner accept the revised process and commit to maintain the improved performance? - Is there any part of the implementation that is not complete? If so, how do you plan on completing? - Has the Process been turned over to the local Process Owner? - Does the local Process Owner agree to maintain the Control plan? - What is the plan to detect degradation in the performance of the implemented improvements) and correct the condition? - Did you exploit team synergy to maximize effectiveness of your team exercises? - What issues/concerns do you have on long-term maintenance of the improved performance resulting from your project's implementation? - Have you updated your Storyboard? - What is the agreed upon date for the Sustain-Certify Gate (or Control Gate if Project does not pass the Gate review)? Project Close-out: - Has the team prepared all the essential documentation of the improved process, including key procedures and process maps? - Have the right measures been selected to monitor performance of the process and the continued effectiveness of the solution? - Who owns the measures? What happens if minimum performance is not achieved? - Has the solution been effectively implemented? Has the team compiled results data confirming that the solution has achieved the goals defined in the Project Charter? - What are the realized gains? - Has a process owner been ‘commissioned’ to take over responsibility for managing continuing operations? - Has a Storyboard documenting the project work been developed? - Has the team forwarded other issues/opportunities, which were not able to be addressed, to senior management? - Have “lessons learned” been captured? - Have replication opportunities been identified and communicated? - Has the hard work and successful efforts of our team been celebrated? Enter Name Here Sponsor / Process Owner Enter Name Here Executive Director Enter Name Here Financial Representative Enter Name Here Green Belt/Black Belt Enter Name Here Deployment Champion Enter Name Here “Other” Key Stakeholder Enter Name Here “Other” Key Stakeholder Enter Name Here Master Black Belt Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Tollgate Reviews Backup Slides
Halt - Hold D M A I C Go Forward Wait - Go Back

Project Charter Problem/Goal Statement Financial Impact Team
State financial impact of project Expenses Investments (inventory, capital, A/R) Revenues Separate “hard” from “soft” dollars State financial impact of leverage opportunities (future projects) Problem: Describe problem in non-technical terms Statement should explain why project is important; why working on it is a priority Goal: Goals communicate “before” and “after” conditions Shift mean, variance, or both? Should impact cost, time, quality dimensions Express goals using SMART criteria Specific, Measurable, Attainable, Resource Requirements, Time Boundaries Explain leverage and strategic implications (if any) Team Tollgate Review Schedule PES Name Project Executive Sponsor (if different from PS) PS Name Project Sponsor/Process Owner DC Name Deployment Champion GB/BB Name Green Belt/Black Belt MBB Name Master Black Belt Core Team Role % Contrib. LSS Training Team Member 1 SME XX YB Team Member 2 TM XX GB Team Member 3 SME XX PS Extended Team Team Member 1 BFM XX Not Trained Team Member 2 IT XX Not Trained Tollgate Scheduled Revised Complete Define: XX/XX/XX - XX/XX/XX Measure: XX/XX/XX XX/XX/XX XX/XX/XX Analyze: XX/XX/XX XX/XX/XX XX/XX/XX Improve: XX/XX/XX XX/XX/XX XX/XX/XX Control: XX/XX/XX XX/XX/XX XX/XX/XX Readiness Checklist – Measure Project Charter – Confirm that the project will make a significant impact on the Business. How have you confirmed the key customers, the CCR's and KPOVs? What are the revised Business Benefits? Does Business strategy still drive the project? Review high-level schedule milestones here: Phase Completions Tollgate Reviews Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Measure Overview Process Capability Graphical Analysis CTQ: ? Unit (d) or Mean (c): ? Defect (d) or St. Dev. (c): ? PCE%: ? DPMO (d): ? Sigma (Short Term): ? Sigma (Long Term):? MSA Results: show the percentage result of the GR&R, AR&R or other MSA carried out in the project Root Cause / Quick Win Tools Used Root cause: Quick Win #1 Quick Win #2 Quick Win #3 Detailed process mapping MSA Value Stream Mapping Data Collection Planning Basic Statistics Process Capability Histograms Time Series Plot Probability Plot Pareto Analysis Operational Def. 5s Pull Control Charts Measurement System Analysis Confirm that the Measurement process will remain good enough to guide process improvement efforts and to meet customer needs. How do you know that the Measurement System of the KPOVs is still acceptable? Narrowing the list of Potential Root Causes – What was the process for identifying Potential Root Causes, ex. Brainstorming, data analysis, etc.? Has the list potential root causes been reduced? What was the process used to narrow the list of potential root causes? What were the results? Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Analyze Overview Hypothesis Tests Value-Add Analysis Root Cause / Effect Tools Used Root cause: Effect Data Analysis What potential KPIVs were identified? Show the key statistical and graphical tools which narrowed the potential KPIVs. Show regression models developed. How good is the model? Show ANOVA results. Show Hypothesis Test results. What have you learned? Do you see any important interactions between various parameters? Were there any special causes in the data? What did you do? Standard Deviation What effect would a lot of variation in the population have on our estimate of the population mean from a sample? How would this affect our ability to draw conclusions about the mean? What if there is very little variation in the population? Statistical Inferences and Confidence How much confidence do we have in our estimates? How close do you think the true mean, m, is to our estimate of the mean, x-bar? How certain do we want/need to be about conclusions we make from our estimates? If we want to be more confident about our sample estimate (i.e., we want a lower risk of being wrong), then we must relax our statement of how close we are to the true value. Three Factors drive Sample Sizes Three concepts affect the conclusions drawn from a single sample data set of (n) items: Variation in the underlying population (sigma) Risk of drawing the wrong conclusions (alpha, beta) How small a Difference is significant (delta) These 3 factors work together. Each affects the others. Variation: When there’s greater variation, a larger sample is needed to have the same level of confidence that the test will be valid. More variation diminishes our confidence level. Risk: If we want to be more confident that we are not going to make a decision error or miss a significant event, we must increase the sample size. Difference: If we want to be confident that we can identify a smaller difference between two test samples, the sample size must increase Process Balancing “Process Balancing” is a procedure whereby a set of process steps are “equalized” in terms of time required to accomplish them (note “effort” may not be the same!). Process balancing tools are used where the process is contained in a defined area. Examples include: Order Entry Department Mortgage Application Process Key tools used in process balancing are the time study and takt time chart, but other tools such as skill matrix, etc., may play a significant role in the analysis. The Process Balancing techniques are not exclusive to “one-piece flow” – small batches may be necessary between certain steps – but use of the process balancing tools is meant to drive the process to one-piece flow. Primary Issues in Typical Transactional Environments Excess “stuff in process” Poor space utilization Low employee efficiency Long/erratic cycle times Poor balance of labor content across process steps Conveyance, standby and motion waste Disorganized workspace and component/supply storage High variability of demand on multiple processing centers – e.g., call centers/customer arrivals High variability of task content (non-standard work/procedures) Define: What is the Goal of balancing the process? Capacity improvement without adding resources Productivity improvement without sacrificing quality Space reduction Day-to-Day scheduling Long-term resource planning Measure: What tools will be used to gather, present, and analyze data? Time Study and Task Times (breakdown of NVA, BVA, CVA) Historical: Exits, Productivity, Customer Demand, Staffing, etc. Layout and spaghetti flow Analyze: Task Time Chart with breakdown of NVA, BVA, CVA Time Traps and Constraints (if any) Variability of Demand Improve: What steps will be taken and in what order? 1. Reduce NVA of Constraints and Time Traps to meet Customer Demand General Rule is that Max Task Time (incl. NVA+BVA+CVA) of Time Trap should be no more than 90% of Takt Time for low variability 2. Reduce NVA of non-Time Traps General Rule is that Max Task Time of all other non-Time Traps should no more than 90% of Takt Time (customer demand) for highly predictable environments OR 80% of Takt Time for processes with variability 3. Reorder/Re-sort tasks to balance work content, alter staffing 4. Modify Layout to accommodate new staffing Implement work controls (generic pull) 5. Iterate on reducing NVA, then BVA, then CVA and rebalancing/re-staffing until goals are achieved. Cost targets, capacity requirements, etc. Control: Implement visual control tools to sustain the improvements Takt Boards for the Time Trap and overall process 5S & Issue Boards for problem resolution and process control Customer Value Add: A task or activity for which the customer would be willing to pay. Example: Electronic funds transfer via credit card Business Value Add: A task that is required to support the business but for which the customer is not willing to pay Example: Financial Services employee writing customer credit history on a credit application Non-Value Add: A task that is not required and should be eliminated because it is wasteful Example: Financial Services employee having to look for missing information needed to complete credit history Review Sources of Waste Transportation (moving items from one place to another) Inventory (items/paperwork/information waiting to be processed) Motion (excess movement and/or poor ergonomics) Waiting (delays caused by shortages, approvals, downtime) Overprocessing (adding more value than the customer is paying for) Overproduction Defects (rework & scrap – doing the same job more than once) Another waste is: People (untapped and/or misused resources) Hypothesis Testing: Allows us to determine statistically whether or not a value is cause for alarm (or is simply due to random variation) Tells us whether or not two sets of data are different Tells us whether or not a statistical parameter (mean, standard deviation, etc.) is statistically different from a test value of interest Allows us to assess the “strength” of our conclusion (our probability of being correct or wrong) Hypothesis Testing Enables Us to: Handle uncertainty using a commonly accepted approach Be more objective (2 persons will use the same techniques and come to similar conclusions almost all of the time) Confirm or disprove assumptions Control our risk of making wrong decisions or coming to wrong conclusions The null hypothesis is a statement you are testing in order to determine whether or not that statement is true. We assume the null hypothesis is true unless we have enough evidence to prove otherwise. If we can prove otherwise, then we reject the null hypothesis. The alternative hypothesis is a statement that represents reality if there is enough evidence to reject Ho. If we reject the null hypothesis then we accept the alternative hypothesis. This is analogous to being found “guilty” in a court of law. Assumptions - The Hypothesis Tests we have discussed make certain assumptions: Independence between and within samples Random samples Normally distributed data Unknown Variance In our example, we did not assume equal variances. This is the safe choice. However, if we had reason to believe equal variances, then we could have checked the “Assume equal variances” box in the dialogue box. Type I Error - I’ve discovered something that really isn’t here! Alpha Risk Producer Risk The risk of rejecting the null, and taking action, when none was necessary Type II Error - I’ve missed a significant effect Beta Risk Consumer Risk The risk of accepting the null when you should have rejected it. No action is taken when there should have been action. The Type I Error is determined up front. It is the alpha value you choose. The confidence level is one minus the alpha level. The Type II Error is determined from the circumstances of the situation. If alpha is made very small, then beta increases (all else being equal). Requiring overwhelming evidence to reject the null increases the chances of a type II error. To minimize beta, while holding alpha constant, requires increased sample sizes. One minus beta is the probability of rejecting the null hypothesis when it is false. This is referred to as the Power of the test. The p-Value If we reject the null hypothesis, the p-value is the probability of being wrong. In other words, if we reject the null hypothesis, the p-value is the probability of making a Type I error. It is the critical alpha value at which the null hypothesis is rejected. If we don’t want alpha to be more than 0.05, then we simply reject the null hypothesis when the p-value is 0.05 or less. Beta, Power, and Sample Size If two populations truly have different means, but only by a very small amount, then you are more likely to conclude they are the same. This means that the beta risk is greater. Beta only comes into play if the null hypothesis truly is false. The “more” false it is, the greater your chances of detecting it, and the lower your beta risk. The power of a hypothesis test is its ability to detect an effect of a given magnitude. Minitab will calculate beta for us for a given sample size, but first let’s show it graphically…. We have concentrated on 2-sided hypothesis tests. 2-Sided tests determine whether or not two items are equal or whether a parameter is equal to some value. Whether an item is less than or greater than another item or a value is not sought up front. A 2-sided test is a less specific test. The alternative hypothesis is “Not Equal”. Everything we have learned also applies to 1-sided tests. 1-Sided tests determine whether or not an item is less than (<) or greater than (>) another item or value. The alternative hypothesis is either (<) or (>). This makes for a more powerful test (lower beta at a given alpha and sample size). Value Add Analysis One-Way ANOVA Two-Way ANOVA Pareto Plots Simple Linear Regression Multiple Regression Test for Equal Variance Scatter Plots C&E Matrix Complexity Cause & Effect Diagram Kaizen/Quick Wins FMEA Control/Impact Chart T-Test Other Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Improve Tollgate Checklist
What techniques were used to generate ideas for potential solutions? What narrowing and screening techniques were used to further develop and qualify potential solutions? What evaluation criteria were used to select a recommended solution? Do proposed solutions address all the identified root causes, at least the most critical? Were the solutions verified with the Project Sponsor and Stakeholders? Has an approval been received to implement? Was a pilot run to test the solution? What was learned? What modifications made? Has the team seen evidence that the root causes of the initial problems have been addressed during the pilot? What are the expected benefits? Has the team considered potential problems and unintended consequences (FMEA) of the solution and developed preventive and contingency actions to address them? Has the proposed solution been documented, including process participants, job descriptions and if applicable, their estimated time commitment to support the process? Has the team developed an implementation plan? What is the status? Have changes been communicated to all the appropriate people? Has the team been able to identify any additional ‘Quick Wins’? Have ‘learning's’ to-date required modification of the Project Charter? If so, have these changes been approved by the Project Sponsor and the Key Stakeholders? Have any new risks to project success been identified and added to the Risk Mitigation Plan? Deliverables: Prioritized List of Solutions “To-Be” Value Stream Map(s) Pilot Plan & Results Approved Solution and Detailed Implementation Plan Additional “Quick Wins”, if applicable Refined Charter, as necessary Updated Risk Mitigation Plan Deliverables Uploaded to Central Storage Location or Deployment Management System Tollgate Review Stop Has the team developed improvement solutions for the critical X’s, piloted the solution and verified that the solution will solve the problem? International Standards for Lean Six Sigma 19

Control Tollgate Checklist
Has the team prepared all the essential documentation for the improved process, including revised/new Standard Operating Procedures (SOP’s), a training plan and a process control system? Has the necessary training for process owners/operators been performed? Have the right measures been selected, and documented as part of the Process Control System, to monitor performance of the process and the continued effectiveness of the solution? Has the metrics briefing plan/schedule been documented? Who owns the measures? Has the Process Owner’s job description been updated to reflect the new responsibilities? What happens if minimum performance is not achieved? Has the solution been effectively implemented? Has the team compiled results data confirming that the solution has achieved the goals defined in the Project Charter? Has the Benefits Realization Schedule been verified by the Financial Representative? Has the process been transitioned to the Process Owner, to take over responsibility for managing continuing operations? Do they concur with the control plan? Has a final Storyboard documenting the project work been developed? Has the team forwarded other issues/opportunities, which were not able to be addressed, to senior management? Have “lessons learned” been captured? Have replication opportunities been identified and communicated? Has the hard work and successful efforts of our team been celebrated? Deliverables: SOP’s Training Plan Process Control System Benefits Realization Schedule, validated by Financial Representative Validated Solution Replication/ Standardization Plan Lessons Learned Transitioned Project Project Risk Performance Deliverables Uploaded to Central Storage Location or Deployment Management System Tollgate Review Stop Has the team implemented the solution, and a control plan to insure the process is robust to change? International Standards for Lean Six Sigma 20

Lean Six Sigma DMAIC Improvement Process
Define Define the opportunity from both the customer and business perspective Tollgate Review Understand the baseline process performance Stop Measure Tollgate Review Identify the critical X factors and root causes impacting process performance Stop Analyze Tollgate Review Stop Develop solutions linked to critical x’s Improve Tollgate Review Stop Implement solutions & control plan Control Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Measurement Systems Analysis (Optional)
Total Gage R&R Repeatability Reproducibility operator Part-To-Part Total Variation For Continuous Data, use Minitab GR&R Study For Discrete data, use AR&R Excel Tool For more information, see Notes section of this slide Conclusions: 17.12% of component variation from measurement system, 82.88% of component variation from part-to-part measured Notes: Acceptable results for GR&R (continuous or variable data) are: < 10% GR&R as a % of tolerance, < 2% GR&R as a % of contribution, <15% GR&R as a % of study variation. There should be 10 or more distinct categories (discrimination index). Acceptable results for AR&R (discrete or attribute data) are that no more than 10% of data should be in conflict for repeatability, reproducibility and accuracy (>90% repeatable, reproducible and accurate) This page represents output that can be copied from Minitab and pasted here Note: In the Measure phase, an MSA should be done on the y In the Control phase, the MSA should be done on the x(s) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Control Chart (Optional)
Control Chart Findings ? Minitab can be used to generate control charts (Stat>Control Charts>Select Chart Type First step is to determine if the data to be plotted is discrete or continuous For continuous data, if the sample size is: One, then use X (individual) and moving range charts Two-9, then use X-bar and range charts Greater than 9, then use X-bar and S-charts For discrete data, determine if measuring defectives or defects, and for: Defectives, equal sample size: use np-charts Defectives, unequal sample size: use p-charts Defects, equal sample size: use c-charts Defects, unequal sample size: use u-charts Why Monitor and control a process. At a glance, can determine whether process is in control. To know when to adjust a process. To know the difference between assignable and chance variation. To determine process capability. To predict from the pattern of variability the percentage of occurrences that fall outside expected values. What The application of statistical techniques for measuring and analyzing the variation of a process. The diagnosis of the SPC graphs allow one to analyze problems and improve the process. How Decisions on the objectives of the charts. Choice of variable or attribute charts. Select subgroup size and frequency of data collection. Calculate average, standard deviation, control limits and plot the charts. Draw preliminary conclusions from the charts. Indication of control or lack of control. Relationship between what process is doing and what it’s supposed to do. Take action suggested by the charts. Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Takt Board – Monitor (Optional)
TAKT BOARD: <Department Name> Last Week: <CTQ> This Week: <CTQ> Day Scheduled Actual Diff (+/-) Comments - Takt boards monitor the output of a process or process step on a timely basis to ensure that it is keeping up with customer demand. - Takt Boards should at the least provide three key pieces of information: - What should I be doing? - How (fast) should I be doing it? - How have I been doing? - Common Type of Takt Board: Process Summary/Lists - Jobs in process - Value in WIP - Daily Takt Rate for Process - Daily Summary Information - Productivity - Actual Output - WIP Cycle Time Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Mistake Proofing (Poke Yoke) (Optional)
Solution: Make use of existing bar codes on shipping paperwork to mistake proof receiving function. Validate with suppliers (shipping company) that all shipping containers will have barcode label ($0) Purchase RF (wireless) bar coding equipment and software ($100/gun * 20 guns) Train all longshoreman on use and care of equipment ($50/hr * 20 hrs) Install error metrics for error tracking ($100) Mistake-Proofing (Poka-Yoke) What error-prevention methods for KPIVs are included in the control plan? Were the area personnel involved with the error-prevention solutions and implementation? Does the data support that the solutions implemented are working? Why To prevent defects/rework in a business process. What Creative tools/devices/procedures that “mistake-proof” a business process. How Define defect. Determine cause of defect. Utilize Brainstorming/Benchmarking/Best Practices to develop a technique to “mistake-proof” the process. Implement technique Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Cultural/Educational Issues (Optional)
Force Field Analysis: 1. Select a process control method & explain why this choice for your project. 2. Identify 4-6 cultural/educational barriers to successfully implementing your process controls & potential solutions using the Force-Field Analysis Table below: Driving Forces Restraining Forces Force Field Analysis: A technique for analyzing the forces that will aid or hinder an organization in reaching an objective. An arrow pointing to an objective is drawn down the middle of a piece of paper. The factors that will aid the objective's achievement (called the driving forces) are listed on the left side of the arrow; the factors that will hinder its achievement (called the restraining forces) are listed on the right side of the arrow. Why To force creative thinking focused on the issues of change. To build organizational consensus concerning the fuel for and the barriers to change. To provide an entry point into process improvement initiatives. What A tool to assist in examining the driving and restraining forces of change. How List all of the driving forces and all the restraining forces to change. Brainstorming and/or nominal group technique can be used to assist in list development. Establish a plan to eliminate or reduce all restraining forces. Market and use the driving forces in your implementation planning. Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Replication (Optional)
Replication Goals 29% $ savings captured with 1st completed project in 10 week project 70% $ savings captured with 5 locations replicated in 6 months 100% $ savings captured with 9 locations replicated in 9 months Replication Strategy Build change team Train / Kaizen Dashboard Metrics 10 Wks 6 Mo 9 Mo 5 locations standardized (70%) 1st completed project (29%) 9 locations Replicated (100%) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Measure Phase Lean Six Sigma Measure Phase Tollgate Review.

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