Define Phase Lean Six Sigma Define Phase Tollgate Review.

Define Phase Lean Six Sigma Define 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

Team Charter: Business Case & Project Description
Describe the project in non-technical terms ? Define the project’s scope and boundaries (locations, products, operations, etc) Is the scope reasonable? Have key constraints and key assumptions been identified? Where are you feeling the pain? The Attendee Contribution Reinforce use of logic and data which you want the team to continue. Ask questions of clarification about logic and data. Identify places where conclusions have no visible logic and data behind them – assume logic or data might be there and ask questions to invite it to come out. Ask questions to encourage self-discovery of problems. If there are many instances of missing logic or data: Focus on the place where consequences will be most serious if not discovered Focus on the first or earliest omission Offer one or two specific suggestions for improving logic and data. Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Enter Key Slide Take Away (Key Point) Here
Team Effectiveness Ground Rules: Team Roles: Team Meeting Frequency: Tools used by Team: Team Issues: (Schedule, Vacations, Availability, Communication) Other: Ensure that meetings have useful content – Avoid holding meetings if they are unnecessary. Can a one-on-one conversation accomplish what you need? Make meetings timely – Hold them promptly after receipt of important information Keep meetings as small in size as practical – Select only attendees who are directly involved and able to deal effectively with agenda items Be realistic about meeting length – One hour max is a good guideline Inform participants in advance about the purpose, agenda, and objectives so they can come prepared Open meetings with positives – Short-term wins or milestone completions Introduce members if there are some new faces Keep meeting in perspective – Stick to the agenda, stick to the schedule Summarize at the end – Ensure that all action items have a name and due date Be open to change. Maintain a positive attitude. Never leave disagreements unspoken. We’re not interested in assigning blame – only in creating solutions! Practice mutual respect. Treat others as you want to treated. One person, one vote – position doesn’t matter. The only stupid questions are the ones not asked. Have fun! Understand the process, and… JUST DO IT! Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

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

Voice of the Customer (VOC)
Key Customer Issue(s) Critical Requirement Who is the Customer? What does the customer want from us? We need to identify the issue(s) that prevent us from satisfying our customers. We should summarize key issues and translate them into specific and measurable requirements ? Determine Critical Customer Requirements (CCR’s) From requirements to “Quality” A customer’s perception of value & performance represent their view of the “quality” of a product or service Their basis for evaluation is how well their requirements have been met Evaluations are also influenced by their “expectations” Quality = Actual Performance - Expectations All requirements are not created equal … Customers weight their requirements differently The most important customer requirements become those “Critical Customer Requirements” or CCR’s. Critical Customer Requirements Represents a customer desire that must be met Strong correlation to the “buying decision” Often forms the basis for comparison CCR Selection Methods Ask Customers Fast and specific feedback However, they may not be completely honest with you Key Buying Factor Analysis Formal customer survey Force ranks the requirements Kano Analysis Good “first cut” technique to evaluate relative importance of customer requirements Segments by “type of quality”/customer expectation House of Quality (Quality Function Deployment) Use this page to describe who the customer is and any Voice of the Customer (VOC) activities carried out to determine the Customer CTQ (Project Y) - see sample below Potential Discovery Tools: Voice of Customer meeting/interviews Quality Function Deployment (QFD) Customer Surveys Other customer feedback FMEA (Risk Analysis) CTQ Tree Stakeholder Analysis Other Black Belt or Green Belt Project(s) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

SIPOC Chart Suppliers Inputs Process Outputs Customers Supplier #1 Supplier #2 Supplier #3 Billing Dept. staff Customer database Shipping information Order information Billing Process Delivered invoice Delivered receipt Customer #1 Customer #2 Input Metrics Process Metrics Output Metrics ? ? ? Quality Supplier-Input-Process-Output-Customer (SIPOC) Chart Suppliers – Significant internal/external suppliers to the process Inputs – Significant inputs to the process i.e. material, forms, information, etc. Process – One block representing the entire process Outputs – Significant outputs to internal/external customers Customers – Significant internal/external customers to the process The best place to start mapping/analyzing the process A high-level SIPOC chart helps to identify the process output(s) and the customers of that output so that the Voice of the Customer can be captured. How To Do A SIPOC - Label Process - May place first and last step in process - May summarize (3-6 steps) - Brainstorm and Prioritize Customers - For critical few Customers (1-3) – Brainstorm and Prioritize Significant Outputs - Later verify by VOC tools - May designate as CTQ, CTS, CTC (Critical to Quality, Speed, Cost) - Brainstorm and Prioritize Significant Inputs - For critical few – Identify Supplier Leading and Lagging Measures - Leading Measures tell the need to adjust process before the fact. Evaluate inputs and adjust downstream process to reflect results of evaluation. The Input and Process Metrics from SIPOC map (the X’s) are Leading Measures for process performance - Lagging Measures inform about process performance and the need for adjustment after the fact. Some close lagging measures are able to give immediate feedback to the process – small likelihood of providing inconsistent service. Evaluate results of process step and feed information upstream. Some long lagging measures take so long to give feedback that decision-making is not timely and not well defined – great likelihood of providing inconsistent service. Evaluate results of process’ output and feed information upstream. The Output Metrics from the SIPOC map (the Y’s) are Lagging Measures for process performance ? ? ? Speed ? ? ? Cost Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Critical-to-Quality (CTQ) Tree
Strategic Item Process Start: ? Process Stop: ? Functional Dept. Processes Speed Quality Cost Process Requirement: Defect Definition: Unit Definition: Unit of Measure: Data Type: ? ? ? To break any broad strategic business goal, graphically, into levels of detailed actions that could be done to achieve the process charter goals. Allows all participants (and reviewing stakeholders outside the core team), to check all of the logical links. Scoping: reveals the real level of complexity involved in the achievement of any goal, making potentially overwhelming projects manageable, as well as uncovering unknown complexity. Encourages team members to expand their thinking when creating solutions. Simultaneously keeping everyone linked to the overall goals and sub goals. In order for any process capability to accurately be calculated, one must properly define and quantify the process defect, unit and opportunity. Every process should have definitions for defect, unit and opportunity. This article will define the defects, units and opportunities, as well as provide examples. Start With The Customer Before you can define your process defects, units and opportunities, you need to understand the needs of your customers. Voice of the Customer (Customer Needs, eSurveys, Focus Groups, Surveys) is the process of gathering customer comments/quotes and translating them into issues and specifications. From these comments, issues and specifications come the customer CCR (Critical Customer Requirement) – a product or service characteristic that must be met to satisfy a customer specification or requirement. Define Your Product/Service Defects A defect is defined as any part of a product or service that: - does not meet customer specifications or requirements, or - causes customer dissatisfaction, or - does not fulfill the functional or physical requirements. It should be noted that the term customer refers to both internal and external customers. Define Your Product/Service Units A unit is something that can be quantified by a customer. It is a measurable and observable output of your business process. It may manifest itself as a physical unit or, if a service, it may have specific start and stop points. Define Your Product/Service Opportunities Simply stated, opportunities are the total number of chances per unit to have a defect. Each opportunity must be independent of other opportunities and, like a unit, must be measurable and observable. The final requirement of an opportunity is that it directly relates to the customer CCR (see Start With The Customer above). The total count of opportunities indicates the complexity of a product or service. CCR Examples Including Defect, Unit and Opportunity Area: Call Center Customer Quote: 'I consistently wait too long to speak to a representative.' CCR Name: Representative Responsiveness CCR Measure: Time on hold (seconds) CCR Specification: Less than 60 seconds from call connection to the automated response system Defect: Calls with hold time equal and greater than 60 seconds Unit: Call Opportunity: 1 per call Calculate Your Sigma Defects: 263 calls Units: 21,501 calls Opportunities: 1 per call Sigma: 3.75 Area: Book Publisher Customer Quote: 'I can't stand typos in books I purchase.' CCR Name: Typographic Quality CCR Measure: Number of typographical mistakes CCR Specification: Zero typographical mistakes Defect: Any typographical mistakes Unit: A word Opportunity: Words per book Defects: 2 typographical mistakes Units: 100,000 (500 words/page x 200 pages/book) Opportunities: 1 per word Sigma: 5.61 Area: Printed Circuit Board Manufacturing Customer Quote: 'Boards must work when I plug them in.' CCR Name: Board Functionality CCR Measure: Non-functioning or improperly functioning boards CCR Specification: All boards function properly (a board wil not function properly if any individual component is bad) Defect: Any non-functioning or improperly functioning board Unit: A board Opportunity: Total number of parts plus solder points Defects: 18 boards Units: 1,000 boards Opportunities: 58 (1 board + 13 resistors + 4 capacitors + 2 diodes + 38 solder points) Sigma: 4.92 Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Tollgate Review Schedule Enter Key Slide Take Away (Key Point) Here
EXAMPLE Review high-level schedule milestones here Phase Completions Gate Reviews Executive Briefing Tollgate Review Schedule 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 Phase 1: Define Phase 2: Measure Phase 3: Analyze Project Plan and Timeline Ties executable plan to deliverables Provides rolling details of project status Assigns accountability Maintains baselines if desired Used as basis for updates (Stat Plans) Updates on % complete, risks, etc. Updated weekly Phase 4: Improve Phase 5: Control Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 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

Communication Plan Audience Media Purpose Topics of Discussion/ Key Messages Owner Frequency Notes/Status Effective Communications Must have the following characteristics: A consistent formal process Simple and understood by all Contain current information Have a feedback loop built into the process Will help: Build and maintain trust Prevent rumors Enlist and enroll the participation of employees in the pursuit of achieving objectives What’s the best way to communicate with your team, key stakeholders and project champion? Who is your audience? What is the tool or media you will use to communicate? What is the purpose of your communication? What are you key messages? Who is the owner of the communications task? What is the timing and frequency of the communications? Identify the various audiences you will need to communicate to: Executive Team Departmental Managers Administration Risk Management Sales Marketing HR Consumer Relations Engineering Finance Legal Customers Salaried Hourly Marketplace South America Distributors Europe Asia North America Identify the media by which you will communicate to the groups above: Voice Mail Posters Memos Oral Communication Formal Presentations “Elevator Speech” For each Stakeholder identified, determine: Are they critical for development of project tasks (Project Enabling Stakeholders) or critical for the successful implementation of a solution (Project Implementation Stakeholders)? What concerns can you anticipate for each Stakeholder? What positive outcomes exist for each Stakeholder? What will be your message for each Stakeholder? A Stakeholder Analysis should be completed/revised as critical aspects of the project change (I.e. scope changes, solution options become more visible, etc.) A Stakeholder Analysis should be a confidential document Communication Plan Comes in many forms, but Key Elements include: Target of communication Frequency of communication Media to be used Be specific, Example 1: A 30 minute verbal conversation, every Friday at 4 p.m., including topics … Example 2: A weekly written update, to be completed by Friday end-of-day, to include, a) Activities completed this past week, b) activities to be completed next week, c) currents risk to on-time, on-budget completion, & d) action plan to resolve risks. Revise, as necessary, as project matures Especially important to revise/update for project implementation Obtain verbal agreement on each plan element from target of communication Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Current Status Key actions completed Issues Lessons learned Communications, 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

Sign Off I concur that the Define phase was successfully completed on MM/DD/YYYY I concur the project is ready to proceed to next phase: Measure Enter Name Here Green Belt/Black Belt Enter Name Here Deployment Champion Enter Name Here Sponsor / Process Owner Enter Name Here Financial Representative 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

Define Tollgate Checklist
Is this project important, i.e. has the project been chosen because it is in alignment with business goals and the strategic direction of the ‘business’? What is the problem statement – detailing (what) is the problem, (when) was the problem first seen, (where) is it seen, and what is the (magnitude or extent) of the problem. Is the problem measured in terms of Quality, Cycle Time or Cost Efficiency, or direct financial benefits? Ensure there is no mention or assumptions about causes and solutions. Does a goal statement exist that defines the results expected to be achieved by the process, with reasonable and measurable targets? Is the goal developed for the “what” in the problem statement, thus measured as Quality, Cycle Time, or Cost Efficiency metric? Does a financial business case exist, explaining the potential impact (i.e. measured in dollars) of the project on the process, department, division, suppliers, customers, etc.? Is the project scope reasonable? Have constraints and key assumptions been identified? Have IT implications been addressed and coordinated with IT managers? Who is on the team? Are they the right resources and has their required time commitment to the project been confirmed by Management and Deployment Team? What is the high level work plan? What are the key milestones (i.e. dates of tollgate reviews for DMAIC projects)? Who are the customers (internal/external) for this process? What are their requirements? Are they measurable? How were the requirements determined? Who are the key stakeholders? How will they be involved in the project? How will progress be communicated to them? Do they agree to the project? What kinds of barriers/obstacles will need assistance to be removed? Has the development of a risk mitigation plan to deal with the identified risks been developed? Key Deliverables: SIPOC Process Map and/or Value Stream Map Communication Plan Validated Project Charter Initial Work Plan Risk Mitigation Plan Deliverables Uploaded to Central Storage Location or Deployment Management System. Tollgate Review Stop Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

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

Measure Tollgate Checklist
Has a more detailed Value Stream Map been completed to better understand the process and problem, and where in the process the root causes might reside? Has the team conducted a value-added and cycle time analysis, identifying areas where time and resources are devoted to tasks not critical to the customer? Has the team identified the specific input (x), process (x), and output (y) measures needing to be collected for both effectiveness and efficiency categories (i.e. Quality, Speed, and Cost measures)? Has the team developed clear, unambiguous operational definitions for each measurement and tested them with others to ensure clarity/consistent interpretation? Has a clear, reasonable choice been made between gathering new data or taking advantage of existing data already collected by the organization? Has an appropriate sample size and sampling frequency been established to ensure valid representation of the process we’re measuring? Has the measurement system been checked for repeatability and reproducibility, potentially including training of data collectors? Has the team developed and tested data collection forms or check sheets which are easy to use and provide consistent, complete data? Has baseline performance and process capability been established? How large is the gap between current performance and the customer (or project) requirements? Has the team been able to identify any complete ‘Quick Wins’? Have any Kaizen opportunities been identified to accelerate momentum and results? Have key learning(s) to-date required any 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, added to the Risk Mitigation Plan, and a mitigation strategy put in place? Key Deliverables: Detailed Value Stream Map(s) Data Collection Plan Measurement Collection Results Process Capability Results Current Baseline Process Performance Quick Wins, if applicable Identification of Kaizen Opportunities, if applicable Refined Charter, as necessary Updated Risk Mitigation Plan Deliverables Uploaded to Central Storage Location or Deployment Management System. Tollgate Review Stop Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Responsibility Grid (Optional)
Responsibility Grid Decision = should be the only one to make this decision = should have veto power over this decision 3 = should be one of those who votes Green Belt Black Belt Master Black Belt Project Sponsor Deployment Champion Executive Leader Customer Charter Define Measure Execution A = has to execute B = has to assist in execution (provide information,…) C = not involved in execution Analyze Improve Control Responsibility P = Perform A = Approve R = Review Responsibility Grid - A useful tool to help the project team sort out “who will do what” in terms of decision making. Based on the theory that not all constituents have the same vested interest in the decisions the team will make, it can help the team identify the areas where they need to be “politically” sensitive to the needs and desires of various groups and individuals as they relate to activities (execution), decisions and milestones of the project. Uses: Project teams who have used this tool have found it very useful in sorting out who will do what with respect to overall action plan for the project, rather than in the more traditional way of identifying who needs to be “in the loop” with regard to decision making. Steps: Team members decide how they want to use the grid (eg: including key stakeholders or just the team members). They then work as a team to complete the grid, remembering to do the first draft “in pencil” so as to minimize win/loss conflicts. A communication plan is then produced to ensure that all affected parties are informed of the team’s view of the project plan as represented in this grid. OPTION: Some teams may wish to employ a more traditional project planning process (PERT, Critical Path, Program Management, etc.) for the overall project plan and use this grid to only address key areas of potential conflict and confusion regarding decision-making authority. Timing: Probably most useful when the team has done enough work on need, vision and mobilizing commitment to yield a detailed action plan. Also, obviously useful useful when the team has arrived at a major decision point. Tips: Don’t be afraid to modify this grid to suit the needs of the team. It could help sort out who will do what with regard to and action plan (names along the horizontal, actions along the vertical) or who will play what role (names along the horizontal, tasks or activities along the vertical) with each task charted: P = Perform, A = Approve, R = Review, etc… When the team’s work on this involves other key stakeholders, it probably makes sense to involve them in the development of the grid rather than simply informing them of the team’s work after the fact. Used in its traditional format (In decision making), this can be a useful tool for helping the team identify ways they need to be more or less responsible for key decisions along the way. For example, it might reveal that the team does not currently have the decision making authority it needs to move the project along swiftly or, conversely, does not have sufficient involvement from others in decisions that will ultimately affect the team. Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Strategy - Thought Map (Optional)
Are the team members identified? Critical variables identified? Are my champions & Controller briefed? Problem Has the CTQ’s been defined? Is Y=F(X) established? Can we control X’s? Are the CTQ’s measurable? A map of your working strategy to solve your problem A problem-solving roadmap A living document that promotes critical thought Primary benefits: Saves time by reducing the amount of work Help the team communicate Keeps the project focused Finds the project ‘killer’ Secondary benefits Documents your work Explains your problem solving methodology to other Points out ‘holes’ in your problem solving strategy Shows were you currently are Shows tool usage and tool linkage Makes sure the right tools are used Planned sequence of the actions including Serial and Parallel path The logic behind a series of decisions to solve a problem Linkage of Lean Six Sigma tools to Project results Communication tool for Team members Leadership Specific to your project Do we have a measurement system? Can we have dashboards on X’s? Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Customer Segmentation Matrix (Optional) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Ranking of Customer Needs Enter Key Slide Take Away (Key Point) Here
Kano Analysis Chart (Optional) Ranking of Customer Needs Dissatisfiers or Basic Needs – Expected features or characteristics of a product or service (legible forms, correctly-spelled name, basic functionality). These needs are typically “unspoken”. If these needs are not fulfilled, the customer will be extremely dissatisfied. Satisfiers or Performance Needs – Standard characteristics that increase or decrease satisfaction by their degree (cost/price, ease of use, speed). These needs are typically “spoken”. Delighters or Excitement Needs – Unexpected features or characteristics that impress customers and earn you “extra credit”. These needs are also typically “unspoken”. The Kano Model addresses the 3 types of requirements: Satisfying Basic Needs – Allows you to get into the market Satisfying Performance Needs – Allows you to remain in the market Satisfying Excitement Needs – Allows you to excel, to be World Class Requirements can be: Spoken (or written) Unspoken/unwritten To maximize the chances of success in the market, all 3 must be addressed The Kano Model is helpful in understanding different types of customer needs. Blindly fulfilling customer needs has risk associated with it if there is not a good understanding of the different types of needs. Without this understanding, a team risks: Providing superfluous quality Wowing the customer in one area, and driving them to competitors in another Focusing only on what customers say, and not what they think or believe Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

VOC Plan (Optional) Process Name: Project Name: Created By: Date Initiated: Location: Current Revision Date: Customers and Segments List the various customers (external) and other key stakeholders (business partners, regulatory agencies, etc.) of your process. Are there different types of stakeholders who may have very different needs? If so, list these as different segments. ? What You Want to Know Develop a list of specifically what you want to know about your customers and other stakeholders needs. Use the following list as a guide: What are the most important process outputs (products/services)? What is the performance level of the important outputs? What are the problems with the outputs? What is their impact? What do you like about _______? What can be improved about _______? What can be done to make your job easier? What specific recommendations would you make to us? How do we compare relative to our competitors? How easy is it to do business with us? Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

VOC Plan (Cont.) (Optional)
Information Sources (Check the data sources that you think will be most useful) Reactive Data Complaints Problem or service hot lines Technical support calls Customer service calls Claims, credits Sales reporting Product return information Warranty claims Web page activity Proactive Data Interviews Focus groups Surveys Comment cards Sales visits/calls Direct observation Market research/monitoring Benchmarking Other: VOC Collection Plan Summary Summarize your plans to gather and use both reactive and proactive sources of VOC information. Indicate how much data you will get, how you will get it, and when. Include, for instance: What specific sources of data you plan on exploring The number of interviews or surveys you plan to use Which customers you will contact The amount of data you will collect - When you will start and end the data collection How you plan on analyzing the gathered information Etc. ? Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Quality Functional Deployment (QFD) (Optional)
Importance Ratings Strong Impact Moderate Impact Weak Impact Note: an alternate use of this tool is to determine the best metric to indicate performance against customer CTQs. For that application, replace process steps in the horizontal columns with potential metrics (y’s) relating to the customer CTQ (Y) Note: For more help on this tool, please refer to the following QuickPlace: This page contains an embedded MS Excel worksheet. Double click the worksheet on the slide to modify the cell contents Add more rows for CTQs if necessary If using this QFD to determine area of focus within a process, take process steps from high level process map in COPIS (abbreviate steps if necessary) An alternate use of this tool is to determine the best metric to indicate performance against customer CTQs. For that application, replace process steps in the horizontal columns with potential metrics (y’s) relating to the customer CTQ (Y) Use of the top (“roof”) section is optional. Consult your BB if you would like to use this section and need guidance Pages with the black and white checkmark symbol such as this one are required only if applicable to your project. Consult your BB for confirmation if you are not sure whether or not this page should be utilized for your project Note: the QFD may also be used in the MEASURE 1 phase Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Project Definition: Includes/Excludes (Optional)
A process tool which challenges the team to clarify and agree on what is included and isn’t excluded in the scope of work. The dimensions (What, Where, etc.) can be easily modified to address aspects of the project the team feels essential to resolve (such as adding a dimension of “key deliverables” if this is an aspect that has little clarity and/or agreement associated with it. Uses: A simple tool to begin to define the boundaries for the project. Can easily be done in a “storyboard” fashion and could then be used to modify or extend the original contract with the Team Sponsor, and/or to orient new members to the team and the project. Steps: Individually, complete the chart. Distribute storyboard cards and ask team members to transfer a major point from each dimension to a card and place them on the wall-sized chart. Discuss and resolve differences. OPTION: You can save a bit of time by distributing the storyboard cards as part of a pre-work assignment and have people arrive at the meeting with their cards ready to be placed on the wall chart. Timing: This tool should be used in conjunction with the In The Frame/Out Of The Frame chart in the early stages of the project to clarify what is stated in the Charter with the team sponsor. It can be updated as necessary as the project advances. Tips: Far too often, project teams waste valuable time and efforts due to an unclear scope of work. Some fear embarrassment if they don’t already know what the Sponsor wants them to do, while others simply ignore the fact that not all team members see the project the same way. While the contract itself may seem a bit artificial, the intent is serious and important. Time spent up front clarifying what is and isn’t in the scope of work for the team will save resources, time and frustration later on in the project life-cycle. If there are disagreements about scope, it is better to know what they are up front than later when rework is inevitable. Also, if (as in most cases) the project scope expands as the project unfolds, the expansion can be more easily understood by all if the team works from a common, original scope document. Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

SWOT Analysis (Optional)
Strength Weakness ? ? Opportunity Threat Short Term ? ? What is a SWOT Analysis? A SWOT (Strengths, Weaknesses, Opportunities, and Threats) is a tool used to provide a general or detailed snapshot of a company's health. Think of your SWOT as a tune-up that every business needs periodically to diagnose and fix what’s a bit worn, what’s on the verge of breaking down, or what’s already broken and needs replacement--so that you can keep the business humming—even better than it has in the past. SWOT offers professional managers an effective evaluative technique to aid the decision making process. It can not find the solution for you, but it will ensure that issues are: identified, classified and prioritized clearly, showing the problem in terms of key underlying issues. Decision makers can then see the answer. It's a four-part approach to analyzing a company's overall strategy or the strategy of its business units. All four aspects must be considered to implement a long-range plan of action. Why use a SWOT Analysis? In any business, it is imperative that the business be its own worst critic. A SWOT analysis forces an objective analysis of a company's position via its competitors and the marketplace. Simultaneously, an effective SWOT analysis will help determine in which areas a company is succeeding, allowing it to allocate resources in such a way as to maintain any dominant positions it may have. SWOT Analysis is a very effective way of identifying your Strengths and Weaknesses, and of examining the Opportunities and Threats you face. Carrying out an analysis using the SWOT framework will help you to focus your activities into areas where you are strong, and where the greatest opportunities lie. Why Bother to SWOT? The economy stinks. So why take the time to bang your company over the head doing a SWOT analysis when so much is out of your control? No question that the current downturn is impacting some businesses more traumatically than others, and a lot of disappointing business results can be blamed primarily on the general economic climate. But look around. A high percentage of U.S. businesses are surviving the pain, and many are even thriving. During depressed economic times, there are still lots of winners--who typically win not by sticking with their past game plans--but rather by focusing on some new thing(s) that are under their control. A Basic SWOT Analysis You can develop the basic analysis in a brainstorming session with members of your company, or by yourself if you are a one-person shop. The business of management today is characterised by complex issues and continuous change. Frequently the related decisions and actions are characterised by trying to understand the complexity of the issues involved so that an appropriate decision can be made. While this kind of applied decision making is not an exact science, SWOT analysis is internationally known as a method of understanding the issues which are involved. In doing so, ideas can be shared between managers and even integrated into a wider picture for subsequent analysis. Use SWOT analysis to help you and your team reach the best solution by: Helping decision makers share and compare ideas Bringing about a clearer common purpose and understanding of factors for success Organizing the important factors linked to success and failure in the business world. Analyzing issues that have led to failure in the past Providing linearity to the decision making process allowing complex ideas to be presented systematically. How does SWOT analysis work? The strategy is to look at the organizations current performance (strengths and weaknesses) and factors in the external environment (opportunities and threats) that might affect the organizations future. Once the attributes for each section have been identified it is possible to determine the point of balance. Eventually the points of balance of strengths versus weaknesses and opportunities versus threats can be plotted together. For example, an information technology department needs to determine the strengths and weaknesses of its people and its technology. It also needs to make sure the IT strategy complements the company's business goals. The department head needs to ask: What is each staff member good at? What are they not good at? Project leaders also must consider opportunities and threats -- or customers and competitors. How attractive is the market or direction they're considering? What's their market share and cost structure? To get a better look at the big picture, consider both internal and external forces when uncovering opportunities and threats. Internal Analysis: Examine the capabilities of your organization. This can be done by analyzing your organization's strengths and weaknesses. External Analysis: Look at the main points in the environmental analysis, and identify those points that pose opportunities for your organization, and those that pose threats or obstacles to performance. Key points: Once the SWOT analysis has been completed, mark each point with the following: Things that MUST be addressed immediately. Things that can be handled now. Things that should be researched further. Things that should be planned for the future. Now that each point has been prioritized, set an action point for each and assign it to a person, add a deadline. Although the SWOT analysis will assist in identifying issues, the action plan will ensure that something is done about each one. With complicated issues, a further brainstorming session might be done to analyze it further and decide what action to take. The SWOT analysis results should be reviewed every few months to determine if anything has changed and what has been achieved. The "Brainstorm" is best used when setting up a new project or organization, works best in smaller groups than a SWOT session, and can be effectively used in the transformation process when the participants are a smaller group of managers. The observations generated by the participants should not include any major surprises to the organizers and coordinators of the program and the administrators of the organization. It can be used in a conference where the participants come from different locations and organizations. Long Term Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Multi-Generational Project Plan (Optional)
What Is a Multi-Generation Project Plan? A vehicle to help focus the design team’s energies on a manageable project that can be completed relatively quickly. Since the future has been considered, the team will not make decisions that are incompatible with future generations. As the team’s work progresses, new ideas can be added to future generations of the process instead of increasing the development time for the first generation process. Helps manage “scope creep.” The organization can be working on new technologies that are needed for future generations while the first generation process is being implemented and benefits realized. The MGPP is usually not fully developed in the Define step. In Define you should describe all the elements for the first generation product/service as fully as possible and fill in as much information as you have for future generations. You will add information to the MGPP throughout the DFSS process. At the end of the first generation, you will be able to describe the second and third generation products and services in much greater detail because of what you have learned from your research and testing of the first generation product. The Multi-Generation Project Plan Will Help Initially establish a reasonable project scope – one that drives values with a reasonable completion date Capture good ideas that are surfaced during the project Proactively identify project replication opportunities for other parts of the business Establish the “big picture” – How does this project fit into the overall improvement scheme for the organization E.g., the objective is to reduce billing errors for all of our customers. The first generation will address problems with our top 20% customers. E.g., this project will streamline the process and reduce the number of errors. The next phase will be to implement an automated information system. Communicate with stakeholders “We’re focusing on this part of the process with this project, but recommend a follow-on project to address other parts of the process”. 1. Start with the vision. Describe the vision for the new product/service 3 years from now. Then back up and describe product/service stages that lead up to the longer-term vision. 2. Describe the concept and technologies/platforms for Generation 1 in as much detail as possible. 3. Fill in as much information for Generation 2 and 3 concepts, platforms and technologies as you can. You will be adding more information about these elements as you learn more during Generation 1 development Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Process Bottleneck Identification & Workload Balancing (Optional)
Takt Rate Analysis compares the task time of each process (or process step) to: Each other to determine the time trap Customer demand to determine if the time trap is the constraint 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) Develop the Ability: To understand that waste simply: Raises cost Produces no corresponding benefit Threatens all of our jobs To recognize and identify waste To have the courage to call it waste To have the desire to eliminate waste To apply tools/techniques to eliminate waste To understand the benefits of eliminating waste External (customer satisfaction, shareholder value) Internal (employee satisfaction, financial improvement Net Process Time Available Number of Units to Process Takt Time = Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

Influence Strategy (Optional)
Uses: Once the team knows who the key stakeholders are, the difficult task of figuring out a strategy to win their support begins. This simple planning tool can help the team assess the issues and concerns of each stakeholder who must be moved to a higher level of support for the project, and identify a strategy for doing so. Taking time to talk through the concerns important to each key stakeholder, and validating this with the individual involved, is time consuming but critical to the formulation of a strategy for influence. In this instance, an issue is something the stakeholder feels strongly about regardless of the change initiative (example: a Purchasing Manager will certainly have many issues around effective supplier management). likewise, each stakeholder will have one or more concerns regarding the change initiative itself (example: the same Purchasing Manager may be concerned that the change initiative not derail his own initiative that involves training employees in the new supplier management process). Once key stakeholders are known and their political attitudes have been discussed (and verified), the job turns to one of building an effective strategy for influencing them to strengthen, or at a minimum, maintain their level of support. The team’s task is to determine what their issues and concerns are, who can best influence each individual, and how they are best influenced (one-on-one, informally, demonstrations like site visits, etc.). How To Steps: 1. List the key stakeholders that need to be influenced. Remember that even if someone is already moderately or strongly supportive, they will have issues and concerns that need to be addressed by the team. 2. Discuss each stakeholders issues and concerns and agree on a method for validating these perceptions. 3. Identify "wins" for each stakeholder (example: continue to play a key role in organizational decision making, etc…) 4. When the team has validated their understanding of the stakeholders issues and concerns, it is time to proceed with developing an influence strategy. At this point, it is often useful to consider a number of aspects of the influence process which may not have been addressed before: A. What is this person's "style"? (Example: are they a statistical person who will be most likely to be swayed by data?) B. What history needs to be taken into account as we talk about this individual? or, Does she/he have an issue with any of the team members that might make it difficult to support the initiative?) C. Is there a part of the change initiative that, if we could give it to this person, would generate their support? 5. Be sure that assignments are made that will ensure that the influence strategy will be implemented appropriately and in a timely fashion. 5. OPTION: Some teams combine this discussion with the formulation of their communication campaign for change. Timing: Anytime the team is discussing a key stakeholder whose support must be one. Tips: This tool is very straightforward and easy to understand. The only trap some teams fall into is around the strategy itself. Careful thought needs to be given to who will have most impact on this individual, what is the nature of the message that needs to be delivered, and how and when should the influence process begin. Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

RACI Chart (Optional) 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

Define Phase Lean Six Sigma Define Phase Tollgate Review.

Similar presentations

Presentation on theme: "Define Phase Lean Six Sigma Define Phase Tollgate Review."— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Define Phase Lean Six Sigma Define Phase Tollgate Review.

Similar presentations

Presentation on theme: "Define Phase Lean Six Sigma Define Phase Tollgate Review."— Presentation transcript:

Similar presentations

About project

Feedback