1. Lean Six Sigma Tools and Techniques for Continuous Improvement Session Three (Best Practices Improvement Tools and Approaches) This product was funded by a grant awarded under the President’s High Growth Job Training Initiative as implemented by the U.S. Department of Labor’s Employment & Training Administration. The information contained in this product was created by a grantee organization and does not necessarily reflect the official position of the U.S. Department of Labor. All references to non-governmental companies or organizations, their services, products, or resources are offered for informational purposes and should not be construed as an endorsement by the Department of Labor. This product is copyrighted by the institution that created it and is intended for individual organizational, non-commercial use only.

2. 2 Lean Six SIGMA Tollgate #3 DEFINE MEASURE ANALYZE IMPROVE CONTROL Develop LQS Team Charter, LQS Model & [Master Plan] Create High Level SIPOC Maps Identify CTQs: Customer Requirements Create Measurement Scorecards Implement Project Data Collection Plans Analyze The Data Analyze The Process Analyze The Root Causes Generate Solutions Select/ Test Solutions Determine Lean Control Points Implement The Lean Management Response Plan 1 2 3 4 6 9 11 5 7 8 10 12

3. 3 Lean Six SIGMA Tollgate #4 DEFINE MEASURE ANALYZE IMPROVE CONTROL Develop LQS Team Charter, LQS Model & [Master Plan] Create High Level SIPOC Maps Identify CTQs: Customer Requirements Create Measurement Scorecards Implement Project Data Collection Plans Analyze The Data Analyze The Process Analyze The Root Causes Generate Solutions Select/ Test Solutions Determine Lean Control Points Implement The Lean Management Response Plan 1 2 3 4 6 9 11 5 7 8 10 12

4. Measure Phase: Overview ExpertNovice Create detailed customer measures with targets No addressing customer measures Operationally define the customer requirements Missing and ambiguous measures of customer requirements Create a data collection planNo systematic plan to collect data Understands sampling techniques No understanding of sampling Implement the data collection plan No real data collection plan Understand basic statistical process control No real understanding of SPC Measure current process efficiency No understanding of measures of process efficiency Get the Facts

5. Theme Of Lean Turnaround #1 The major theme of Lean Turnaround Module #1 centers around creating a common set of assumptions, values and patterns of thinking which have a strong influence on your behavior and the performance of your employees.

6. Assumptions and Values As the Lean Turnaround clearly demonstrates, there are 15 key assumptions and values which govern how we feel about employee motivation and effective management When we show deep commitment to the wrong values, our employees are adversely impacted by these judgments Successful teams continue to outperform the average by a 2-1 margin.

7. Measurement Scorecards There are 6 basic types of scorecards: -- Process Scorecards -- Customer Scorecards -- Management Scorecards -- Project Scorecards -- Employee Scorecards -- Supplier Scorecards 7

8. Process Scorecards Process Scorecards begin with the Process Map and end with the Value Stream Map (VSM) A Process Failpoint Matrix is used to identify the major control point areas for failure Process Measures are used to track waste & gaps and to indentify improvements 8

9. Process Value Added Analysis Worksheet

11. Process Failpoint Analysis Matrix

12. Failpoints Moments of Truth Analysis Moments of Truth - Those Steps in Your Process or Sub-process where Either a Positive or Negative Impression can be formed between Supplier and Customer

13. Positive Moments of Truth Criteria –Thinks and Talks about Being Customer Focused. –Assesses Customer’s Perceptions. –Resolves Issues in Favor of the Most Profitable Impact on the Customer. –Resolves a Dispute in Favor of the Customer where the Value of Goodwill Exceeds the Economic Stake to the Supplier. –Recovers Conscientiously from Previous Blunders or Mishandled Moments of Truth. –“Whatever it Takes” Approach to Remedy a Situation for a Dissatisfied Customer or One With a Special Need. –Redesigns Systems or Eliminates “Sacred Cows.”

14. Moments of Truth Worksheet

15. Homework Assignments 1.Finalize Team Charter 2.Complete SIPOC, CTQs, and SIFOC 3.Create Process Scorecards 4.Begin Gathering Measures 5.Complete Lean Turnaround Module 2 6.Read Step-By-Step Problem Solving through page 43; Lean Enterprise through page 100.