1. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Credit Card Case Study – Round Three The Dot Simulation… An Illustration Of Sigma Lean Tactics

2. Pg 1 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Credit Card Case Study – Round Three Purpose Of The Simulation This round of the “Dot Game” is intended to simulate the application of traditional Lean waste reduction activities to a transactional process, specifically a Credit Card Issuance process. This will allow us to collect and analyze data in order to understand how these activities support the 12 Step Breakthrough Strategy ®. Expose team dynamics regarding waste identification and elimination activities – So have fun and pay attention! The simulation works for many processes: Service applications, transactions, assembly, and other manufacturing processes

3. Pg 2 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Credit Card Case Study – Round Three Simulation Objectives Create a metaphorical understanding of Sigma Lean Tactics and how/why they drive improvement. Objectives by Round: Round 1 – Demonstrate current state practices (Managed Chaos) Round 2 – Value Stream Map the “Current State” of Round 1 Round 3 – Use the “Tools to Identify Waste” and the “Tools to Eliminate Waste” to reduce the waste in the Credit Card process

4. Pg 3 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Credit Card Case Study – Round Three Remember Round #1 Physical Barrier Physical Barrier Inspector Team 2 Inspector Team 1 Yellow Team 1 Red Team 1 Blue Team 1 Green Team 1 Application Supplies Dot supplies Green Team 2 Blue Team 2 Red Team 2 Yellow Team 2

5. Pg 4 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Credit Card Case Study – Round Three Review – (1) Case Study Description Credit Card Issuance Process Two companies, a supplier and a customer are defined; they are The Left Dogleg Bank Company of America (LDBA) and The United States Duffers Golf Association (USDGA), respectively USDGA is interested in issuing a new corporate credit card for their members with a new logo and need to find a supplier that can meet their requirements, which are: -USDGA requires that a minimum 25 credit cards be delivered in 13 minutes with no defects (but the Bank wants more to prove they can do far better than this and make more $) LDBA, which has offices throughout the United States, claims that they have a product that meets the requirements of the USDGA. The USDGA agrees to work with the LDBA to determine whether their product will meet the standards.

6. Pg 5 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Credit Card Case Study – Round Three Review – (2) Case Study Description Credit Card Issuance Process LDBA’s process to issue credit cards is shown on the following slide It is a five-step process that begins with receipt of the Credit Card Application from a USDGA Member and ends when the Credit Card is delivered to that USDGA Member ready to be activated via a phone call The high-level process steps are described below: -Data Entry for Credit Card Application -Background Credit Checks -Set the Customer up in the System -Issue the Card -Inspect the Card before sending to the Customer and Ship Within each of the high-level process steps are more detailed steps that are required to convert the credit card application into a delivered card that is ready to be activated by the customer

7. Pg 6 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Credit Card Case Study – Round Three Review – (3) Case Study Description Initial LDBA High-level Process Flow

8. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved The Dot Game… An Illustration Of Sigma Lean Tactics Round #3: Future State Practice: Waste Minimized

9. Pg 8 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Credit Card Case Study – Round Three Objective Round 3 1.To apply the Sigma Lean Toolkit to eliminate waste/defects 2.To collect data from an optimized process to demonstrate the improvement due to the Sigma Lean methodology 3.Determine the Capability based on the definition of the Defect 4.Each team to determine their metrics (DPMO and Profitability) using the following EXCEL spreadsheets 2260ME00 Benefits Analysis Worksheet.xls 2260ME00 Credit Card Metrics.xls

10. Pg 9 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Credit Card Case Study – Round Three Conducting Round 3 1.The instructor will review the Case Study including a review of the results from the First Round and the cost components of the process 2.The teams will have 45 minutes to develop a production system to maximize throughput (Quality and Cycle) using tools covered to date 3.The instructor will review the plans from each team and may or may not suggest changes (Note: Same team makeup as in Round 1) 4.The instructor will begin the round which will last the same time as was allowed for Round 1 5.Each team will follow its predefined process to produce quality output. The only requirements that must be met are: 1. All dots must be clearly within the circle (white space between dot and circle), 2. The dots must be placed in the defined sequence (Green  Blue  Red  Yellow), or any other sequence as defined by the customer/instructor, 3. Any reworked dots must be removed and placed on a rework sheet, and 4. Either the customer or an inspector must inspect final product.

11. Pg 10 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Credit Card Case Study – Round Three Conducting Round 3 (Cont’d) 6.To ensure inspectors are not allowing bad parts through (to make their team seem better), the customers (or instructor) may randomly audit some sheets. If it is deemed that a significant number of bad parts were let through, then these will need to be reworked at a significant (as determined by the instructor) cost 7.The instructor will call out the end of the game. Data will be tallied and profitability determined. Time duration for Round 3 is to be the same as Round 1 8.At the end of the round each team will tally their production, material consumption, and defects per the requirements of the EXCEL spreadsheets 9.All of the data including profitability calculations will be tallied by the Instructor onto a single copy of the 2260ME00 Credit Card Metrics.xls spreadsheet and reviewed with the class

12. Pg 11 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Credit Card Case Study – Round Three Initial Participant Roles And Responsibilities 1 SupplyResponsible for distributing sheets and dots to the one or two mail clerks 1(2) Mail clerkResponsible for moving batches through all steps in the process, delivering the final batches to the customer and delivering dots to the operators 4 Operators Responsible for placing dots in the circles 1 Inspector Responsible for inspecting and documenting the batches for defects 1 CustomerResponsible for accepting incoming product 1. Use the same number of active participants as your team did in Round 1 2. You may reassign, redefine, cross-train, split into multiple cells, etc. 3. Customer must be independent

13. Pg 12 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Credit Card Case Study – Round Three Financial Information $80 income for every dot that the customer receives, providing it is correctly placed. $200 per sheet whether we ship to customer or have it in WIP. Note: Due to changing market conditions, it is likely that we will scrap WIP that is not shipped by the contract date. $6 per dot for Materials whether it is shipped to the customer, or applied to WIP sheet, or placed on a "scrap" sheet. We are not charged for dots that are still on their original paper as supplied. Fixed cost of $5,000 per processing cycle. $4 per dot for Labor whether it is shipped to the customer, or applied to WIP sheet, or placed on a "scrap" sheet. We are not charged for dots that are still on their original paper as supplied.

14. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Appendix A

15. Pg 14 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Credit Card Case Study – Round Three One Potential Set Of Improvements 1.Sequencing the dots in groups on a single form vs. three random forms 2.Cross training for Operators to let them flex between operations (multiskilled) 3.One pc. Flow vs. batch of five 4.Cellular Layout 5.Elimination of material handler (possibly use as a solo operator who can add all dots) These last three bullets, 6 through 8, represent the improved ability of the operators to perform acceptable work (clear understanding of defect and ability to measure product). Additionally, their self-inspection may be sufficiently good to eliminate the Non-Value-Added inspector. Finally, subsequent operators can inspect the performance of prior operators. Taken together, this could result in a significant decrease in defects and increase in production. 6.Results of MSA to provide additional training for Operators to self inspect 7.Clear defect definition allows improved evaluation capabilities of the operators 8.Operator’s capability of placing dots improved such that the Inspector can be removed and added as another Operator placing dots

16. Pg 15 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Credit Card Case Study – Round Three Trademarks And Service Marks Trademarks of Six Sigma Academy: Breakthrough Change Strategy SM Breakthrough Design SM Breakthrough Software Design SM Breakthrough Diagnosis SM Breakthrough Execution SM Breakthrough Lean ® Breakthrough Sigma Lean SM Breakthrough Six Sigma SM Breakthrough Strategy ® Breakthrough Value Services ® FASTART SM INTELLEQ TM METREQ TM SOLVING YOUR BUSINESS PROBLEMS FOR THE LAST TIME SM Six Sigma is a federally registered trademark of Motorola, Inc. MINITAB is a federally registered trademark of Minitab, Inc. SigmaFlow is a federally registered trademark of Compass Partners, Inc. VarTran is a federally registered trademark of Taylor Enterprises

17. Pg 16 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Credit Card Case Study – Round Three Six Sigma Academy www.6-sigma.com US Tel: (480) 515-9501 US Fax: (480) 515-9507 International Tel: +44-1403-783456 International Fax: +44-1403-218788 8876 E. Pinnacle Peak Road, Suite 100 Scottsdale, AZ 85255