Boss - Module 1 (basics Of Six Sigma) 6d493k

BOSS

BOSS Basics Of Six Sigma – Level 1

1

BOSS Index MODULE 1 1.1 Introduction to Six Sigma • Concept of Quality • Six Sigma Concept • Introduction to DMAIC • • • • • • • • •

1.2 SIPOC, Process Mapping & Process Analysis What is SIPOC Use of SIPOC Case Study on SIPOC What is Process What is Process Mapping Types of Process Maps Case Study Process Analysis Value Add & Non-Value Add Analysis

1.3 VOC & CTQ • What is VOC • Why is VOC critical • VOC Tools • Translating VOC to CTQ • •

1.4 ARMI What is ARMI Use of ARMI

?? QA Session ??

Six Sigma Executive Overview Confidential

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BOSS

What is Six Sigma?  Is equivalent to 99.9997% defect free  Is a performance indicator describing the capability of a product, service, process, and/or input of consistently meeting current and future defined requirements or expectations

s

Comparing different functions/processes Measurement tool 3.4 DPMO (Defects per Million Opportunity) Concept to identify variation

Organization philosophy


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BOSS Six Sigma Terminology  Sigma – An expression of process performance (based on yield or the number of Defects per Million Opportunities – DMPO

 Unit – The item produced or processed

 CTQ (Critical to Quality) – Is truly critical to the customer’s perception of quality – Can be measured – A specification can be set to tell whether or not the CTQ has been achieved

 Defect – Any event that does not meet a customer specification – A defect must be measurable

 Defect Opportunity – A measurable chance for a defect to occur

 Defective – A unit with one or more defects


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What do you understand by Operational Definition? An operational definition is an understandable description of what is to be observed and measured. It includes what something is and how to measure it. An operational definition :  Describes the way something is to be understood  Describes your way of measuring that characteristic or feature  Helps in remaining focused on what is to measured


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Why AIM As High As Six Sigma? Accurate to 99.99966 % (less than 3.4 defects for every million Opportunities) could appear excessive ….! 99.9% is already VERY GOOD ! But what could happen at a quality level of 99.9%, in our everyday lives (about4.6σ )? • 4000 wrong medical prescriptions each year • More than 3000 newborns accidentally falling from the hands of nurses or doctors each year • Two long or short landings at American airports each day • 400 letters per hour which never arrive at their destination Six Sigma Executive Overview Confidential

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BOSS

What is Six Sigma Methodology?  DMAIC (Define, Measure, Analyze, Improve, Control)  A business philosophy of focusing on continuous improvement by understanding customers’ needs, analyzing business processes and instituting proper measurement methods  A structured problem solving methodology that creates the framework for data driven decision-making  An organized process for structured analysis of data  A “tool box” of quality and management tools for problem resolution


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Six Sigma Roap

Define 1. Develop charter 2. Understand voice of customer 3. Create high level

Analyze

Measure 1. Collect baseline

1. Develop a focused problem statement

date on defects 2. Plot defect data over time and

process map

analyse for special

(SIPOC)

causes 3. Create and stratify frequency plots and do Pareto analysis 4. Calculate process sigma

2.

Brainstorm potential causes

3. Organise potential causes 4. Collect data on potential causes 5. Statistical methods to quantify causeeffect relationship

Improve 1. Brainstorm many possible solutions to identify root causes

Control 1. Develop and document standard practices 2. Train

2. Select solution (s)

3. Ongoing monitoring

3. Develop plans

4. Build process for

4. Implement plans 5. Quantify results 6. Evaluate benefits of improvements

updating procedures 5. Summarize and communicate learning's 6. Make recommendations for future plans

5. Create detailed process map

TOLLGATES Six Sigma Executive Overview Confidential

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Six Sigma Roles & Responsibilities

Business Leaders Module : 40 Hours

Champions Master Black Belts

Teachers and Mentors Module : 200 Hours

Full Time Team Leaders Module : 100 Hours

Black Belts

Part Time Team Leaders Module : 80 Hours

Green Belts

All Associates


Foundation of Improvement Teams Module : 4 Hours

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Why adopt Six Sigma?  Get better results consistently  Focus on the “bottom line” which encourages credibility/ from the top of the organization  Six Sigma is a methodology that provides tools to improve the capability of processes  Six Sigma helps us focus reducing defects to near zero  Six Sigma defines and estimates the opportunities for error and calculates defects in the same way every time, thus offering a means for measuring improvement


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SIPOC 1. 2. 3. 4. 5. 6. 7.

Welcome and Introduction SIPOC Defined How can SIPOC be used? How It Works? An Example In-class Exercise Summary

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SIPOC Defined SIPOC is 1. S 2. I 3. P 4. O 5. C

an acronym standing for = Supplier(s) = Input(s) & key requirements = Process = Output(s) & key requirements = Customer(s)

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SIPOC Diagram Defined • A SIPOC Diagram is a visual representation of a high-level process map; including suppliers & inputs into the process and outputs & customers of the process • Visually communicates the scope of a project

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How can SIPOC be used? • SIPOC Diagrams help a team and its sponsor(s) agree on project boundaries and scope • A SIPOC helps teams that inputs match outputs of upstream processes outputs match inputs of downstream processes

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Brainstorming Exercise

How can SIPOC be used in your organization?

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How a SIPOC works? Suppliers Inputs

Process

Outputs

Customers

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Step 1: Begin with the high-level process map Suppliers

Inputs

Process

Outputs

Customers

Step1 Step2 Step3 Step4 17

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Step 2: List all of the outputs from the process Suppliers Inputs

Process Step1 Step2

Outputs

Customers

Examples Services Products Reports Metrics Raw data

Step3 Step4 18

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Step 3: Identify the customers receiving the outputs Suppliers

Inputs

Process Step1 Step2 Step3

Outputs Examples Services Products Reports Metrics Raw data

Customers Examples Internal External Vendors End s Management Downstream Process

Step4 19

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Step 4: List all of the inputs into the process Suppliers

Inputs Examples Data Parts Application Raw materials




Step4 20

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Step 5: Identify the suppliers of the process inputs Suppliers Examples Internal External Vendors Producers Management Upstream Process

Inputs Examples Data Parts Application Raw materials




Step4 21

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An Example: Mowing the Lawn Suppliers

Inputs

Process

Outputs

Customers

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Step 1: Begin with the highlevel process map Suppliers

Inputs

Process

Outputs

Customers

PrepareLawn formowing

Mowthe Lawn

Trimthe Lawn

Clean-up& Removal 23

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Step 2: List all of the outputs from the process Suppliers

Inputs

Process PrepareLawn formowing

Mowthe Lawn

Trimthe Lawn

Clean-up&

Outputs

Customers

• Debris from lawn • Beautiful lawn • Bagged grass clippings • Happy customer

Removal 24

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Step 3: Identify the customers receiving the output Suppliers

Inputs


Mowthe Lawn

Trimthe Lawn

Clean-up&

Outputs

Customers

• Debris from lawn

• Homeowner

• Beautiful lawn

• Yard waste recycler

• Bagged grass clippings • Happy customer

Removal 25

BOSS

Step 4: List all of the inputs into the process Suppliers

Inputs • Long lawn • Lawnmower • Trimmer


Mowthe Lawn

• Gasoline • Yard waste bags • Rake & broom

Trimthe Lawn

Clean-up&

Outputs

Customers


• Homeowner

• Beautiful lawn



Removal 26

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Step 5: Identify the suppliers of the process inputs Suppliers

Inputs

• Homeowner

• Long lawn

• Warehouse

• Lawnmower • Trimmer


Mowthe Lawn

• Gasoline • Yard waste bags • Rake & broom

Trimthe Lawn

Clean-up&

Outputs

Customers


• Homeowner

• Beautiful lawn



Removal 27

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Summary What we covered today 1. Defined SIPOC 2. Discussed how SIPOC can be used 3. Showed how it works 4. Demonstrated an example 5. Completed an in-class exercise

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What is a Process?  Converting a set of inputs to an output, (usually of greater value)  Everything we do is a process  Every process can be characterized by: – Average performance – Inherent Sigma


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Process Maps • • • • • • • • •

What is a process? Why use process maps? Attributes of process maps Process mapping symbols How to create process maps? A real world example Types of process maps Summary References


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What Is a Process?

• A group of activities which , together, achieve a specific goal. • The essence of operation management: inputs are transformed into outputs.


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Process Examples

• • • • •

Sales order processing Demand forecasting Sales operations planning Invoice processing New product development


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Process Maps Allow To: • Understand a process • Simplify the process based on that understanding • Implement or eliminate processes through a multi-step methodology • Redesign the process


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Process Maps Cont’d

• Diagrams which show each step of the process • Similar to flowcharts • Represent the logic necessary to achieve the desired result


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Why Use Process Maps? “ Everything from globalization to collaborative relationships demands maps that are clear and can be read by all the partners in the process. Process models are those maps. We use them to navigate our way through complex business practices of today.” Chris Cummins Vice President, Process Development Group Uniform Code Council, Inc.


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Process Maps: A Picture Is Worth 1000 Words


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Attributes of Process Maps • • • • • •

Intuitive Understood at every level of an organization Sophisticated enough to model complex activities Prevent ambiguity Make effective use of time available to analyze a process Identify process-related issues


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to Know Before We Start Mapping

• Alternative Path: One or more options are presented that create a path off the primary path. • Decision Criteria: When incorporating alternative paths into a map, there must be a choice to be made between 2 or more options; the question being asked should be specific. • Inspection Point: A /fail decision to test an output in process.


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Key (Cont’d) • Input: Materials, money, people, information, or other factors that are essential to the process • Output: The end result -- the product or service that a customer receives • Parallel Process: Another process that can be executed at the same time as the primary process • Primary Process: The tasks must be carried out in order to achieve a desired output from given inputs


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Process Mapping Symbols

• The rectangle represents each task of step within the map

• The parallelogram represents inputs

• The oval represents the process boundary

• The diamond represents a decision


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How to Create a Process Map?

1.

Select a process

2.

Define the process – – –

Goals Input Output


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3. Map the Primary Process

• Define the tasks that will be required to reach the desired output • Incorporate appropriate symbols in your map • Make sure to show parallel processes


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4. Map Alternative Processes • Map points along the primary process where decision are made • Recognize one or more alternative paths • Merge those paths back into the primary path


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5. Map Inspection Points • Use these points to error-proof your map • Useful to better satisfy customers and/or cut down on costs and time • Inspection points could lead into rework loops or do-over loops


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6. Use Your Map to Improve the Process

• Eliminate non-value-added steps • Set standards for the process – What will and what will fail


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Real World Example: Mapping the Student Course Registration Process • Define the process – Output: schedule – The goal of the student: obtain classes needed to graduate – Inputs: the course catalog, an advisor, a computer, and professors • Map the primary process – Tasks of the registration process in logical order


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Student Course Registration Process (Cont’d) • Map alternative paths – 3 points in the map where alternative paths are necessary • Has registration started? YES/NO • Are the classes still available YES/NO • If not, can the student get an override? YES/NO – Diamonds are the appropriate symbols – Alternative paths merge back to the primary process


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Registration Process Map (Simplified) Receive course catalog

NO

Choose classes

YES Can I get signed in?

Find out registration period

Can I ?

NO

YES later

YES via Internet

Are my classes closed? Six Sigma Executive Overview Confidential

NO

Receive schedule 48

BOSS

Benefits of Process Maps • • • • •

Simplified processes Higher efficiencies in employee tasks Greater understanding of processes and procedures Cost savings from elimination of redundant or unnecessary tasks “Opportunities” are addressed and corrected faster

• Better training programs


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Maps Used in the Re-engineering Process Strategic directive

Benchmark data

Design principles

Key performance measures

Goals & specifications for process performance

Customer requirements data Baseline analysis

High-level process map

Innovative ideas

Detailed process map

Model validation

Pilot study of new design

Full-scale implementation Six Sigma Executive Overview Confidential

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1. High-level Process Maps • • • •

Useful in beginning of the re-design process Contain the essential parts of a process Focus on performance goal Helpful for generating innovative ideas


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High-level Process Maps Cont’d

Sub-process

Sub-process

Input

Output Performance goal

Sub-process

Sub-process


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2. Detailed Process Maps • Prepared for each sub-process in the high-level map • Guide decisions on allocation of resources • Determine and set in place key performance measures


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BOSS After a process is documented using the S-I-P-O-C and Process Mapping Tools, you can quickly analyze the value of each step of the process from the perspective of people who are served. Three categories are used to describe types of value that a process step may have: Value added to people served: steps that directly impact the satisfaction of the people served •Value added to operations: steps that the ability to deliver services to the people served •Non-value-added: steps that could be eliminated or changed without harming service levels or the organization 1. In order to assess whether the steps in your process have value to the people that you serve, ask: Is this step required by the people served by the process? Are those served willing to pay for this activity? An activity can be described as adding value for the people served only if: the people served recognize the value the activity specifically impacts the service requirements of those served the step is necessary to meet the timelines and expectations of those served Six Sigma Executive Overview Confidential

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BOSS 2. In order to assess whether the steps in your process add operational value, ask: Could this activity be eliminated if some preceding activity were done differently? Is there a risk if this activity is eliminated? Could any existing technology eliminate this activity? Could this activity be eliminated without impacting the quality of our product or service? Does this activity fulfil an external regulatory requirement? Could this step be made more efficient? Is it done right the first time or does it need to be repeated? An activity adds operational value if it is not a customer value-added activity and is required to: sustain the ability to perform value-added activities for the people served meet contractual, legal, or other regulatory criteria meet health, safety, environmental, or personnel development criteria Six Sigma Executive Overview Confidential

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BOSS 3. In order to assess whether the steps in your process are non-value-added, ask: Does this activity add value for the people served or operations? An activity is ‘non-value-add’ if it does NOT add value for either the people served or for operations. Designating a step as ‘non-value-added’ means that it warrants further analysis to determine whether it should stay the same. Doing the analysis Use a table format like the one below along with your process map to review each step of your process. List each process step in the far left column of the table in the order that they occur. Next, review each step against the definitions of customer value added, operational value added, and non-value added, and classify each step as appropriate. For each step, place one check mark in the appropriate column.


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BOSS PROCESS: OPENING AN Activity

Customer value Operational value Non-value added added added

Request to be opened

X

Gather information

X

Qualify request against legal compliance

X

Authorize request

X

Request review

X

Send incomplete requests to rep

X

Obtain information

X

Request activation

X

manager review

X

manager approval

X

Risk manager review

X

Risk manager approval

X


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BOSS • For each item that is checked as ‘non-value added,’ critically assess whether that step could be completely eliminated or at least modified. Eliminating steps that don't add value allows processes to get faster and more efficient without impacting quality or service levels. Tips • When assessing each step, be sure to include participants who are directly familiar with the process as well as one or two outside voices to help challenge assumptions. • Give each step a hard look. Often, many steps in a process have been performed for so long that they are simply accepted as important even if they are not. • Teams should continually challenge assumptions about what is important and what is not. • The ‘big learning’ occurs when a step is deemed non-value added. Do not get caught up in whether a step adds value for the people served or for the operation. Further, a process does not need both types of value-added steps in order to be legitimate: it's okay if one column is blank.


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BOSS • Expect sensitivity to classifying the work people do as ‘non-value added.’ In order to foster a robust dialogue that challenges the status, it is useful to provide examples of the type of steps that may be non-value added, such as: – – – – – – – – –

counting the amount of work inspection and checking sorting work logging information checking calculations reviewing and approving moving and setup monitoring work Stamping

• any type of rework


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Summary Process maps are: • Simple and effective ways of visualizing and understanding of a process • Valuable and unique quality improvement tools • Waste management tools • Everyone involved can take part in improving the process


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Capturing the Voice of the Customer

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Concept Development Phase Phase 1 Concept Development

Phase 2 Phase 3 System-Level Detail Design Design

Phase 4 Testing and Refinement

Phase 5 Production Ramp-up

Mission Statement Identify Customer Needs

Establish Target Specs

Analyze competitive Products

Generate Product Concepts

Select a Product Concept

Perform Economic Analysis

Refine Specs

Plan Remaining Development Project

Development Plan

Concept Development


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What’s the Problem?

Our Performance Customers’ Need


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Kano's "3 Arrow Diagram" Satisfied Feeling

Neutral Physically Fulfilled   Condition (Need is met)

(Need is not met)

Dissatisfied Feeling

Feeling


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Physically Fulfilled   Condition (Need is met)

(Need is not met)

Unstated, Expected Quality Dissatisfied Feeling


“Taken for granted”

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“Competitive” the more the better

(Need is not met)

"O

Di ne

m

si n e

l" a on

ity l a u Q Physically Fulfilled   Condition (Need is met)




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BOSS


“Surprise & Delighters”

the more the better

Exciting Quality

(Need is not met)

"O

im D ne

“Competitive”

si n e

l" a on

ity l a u Q Physically Fulfilled   Condition (Need is met)




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BOSS

Kano's "3 Arrow Diagram" What was exciting yesterday becomes expected tomorrow

Satisfied Feeling

Physically Fulfilled Condition (Need is met)

(Need is not met)



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BOSS •

The goals for Identifying Customer Needs 1. 2. 3. 4. 5. 6.

Ensure that the product is focused on customer needs. Identify unusual or hidden needs. Provide a ‘body of facts’ for justifying the product specification. Create an archival record of the needs. Ensure that no critical customer need is over-looked. Develop a common understanding of the customer needs by the team.


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BOSS •

The 6 steps in Identifying Customer Needs 1. 2. 3. 4. 5. 6.

Define the scope of the effort Gather raw data from customers. Interpret the raw data in of customer needs. Organize the needs into a hierarchy of primary, secondary, and tertiary needs (if required) Establish the relative importance of the needs. Reflect on the results and the process


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BOSS • Step 1 Gather Raw Data from Customers – Identify typical customers or s – – – – –

• sometimes these can be individuals, other times in groups develop a set of questions that will draw out needed comments decide on using interviews or surveys. Perform the market study capture the customer inputs, written statements, voice, video recording, etc. compile the final written list of customer statements.


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Customer Needs Interviews • Generate a ‘script’ or list of questions • Open ended versus closed ended questions – examples – when to use which • Let the customer talk - be flexible • Manage your time • Get the whole team involved


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BOSS • Step 2 Interpret the Raw Data in of Customer Needs – express the need in of What the product will do, not How it will do it. – Try to keep the interpretation at the same level of detail as the customer input. – Use positive statements. – Express the need as a product attribute. – Avoid the words Must and Want


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Examples of interpreting customer comments Interpreted Need

Customer statement “I need to drive screws fast, faster than by hand”

The SD drives screws faster than by hand.

“I sometimes do duct work; use sheet metal screws”.

The SD drives sheet metal screws into metal duct work.

“I like the pistol grip; it feels better in my hand”.

The SD is comfortable to grip.

“I don’t like it when the tip slips off the screw.”

The SD tip remains aligned with screw head without slipping.

“I sometimes drive screws in at an angle”

The SD will show when the screw in not aligned with the surface.


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BOSS

• Step 3 Organize the Needs into a Hierarchy – Write each Interpreted Need statement on a sticky note, and put them on the wall or chart. – Eliminate redundant statements. – Group the notes according to how similar the needs are to each other. – For each group of notes, write a label on a bigger sticky note. – Look for higher level groups of similar sub groups. – Go back and do a “sanity check” on the data. “how does it feel?”


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• Step 4 Establish the Relative Importance of the Needs. – First try the Team Consensus method – Give every team three sticky dots and have them vote. Or just give each team three votes. – Be careful that all the primary needs are at the same level. – If key customers are available, let them help establish importance either by surveys or in focus groups.


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• Step 5 Reflect on the Results and the Process – This method is not an exact science. – Did we get the important customers in our data? – Are there needs that the current customers can’t envision? – Do we have some weak areas of analysis? – Are we surprised by the results? And why? – Did we get the key stakeholders involved?


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Steps in customer needs prioritization. Theme

State the Project Scope or Mission. Capture customer inputs, one customer need on each Sticky note.

Theme

Theme

Group similar needs.

Theme

Title the groups. Lay out groups and show relations between groups.

Theme

Theme

Conclusion

Vote on most important needs and draw conclusion. Six Sigma Executive Overview Confidential

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Introduction to ARMI What is ARMI? • A tool to determine individuals and / or groups whose commitment is essential for project success and / or to drive any change / initiative.


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BOSS KEY STAKEHOLDERS

Define

Measure

Analyse

Improve

Control

A

A

A

A

A

I/A/R

I/A/R

I/A/R

I/A/R

I/A/R

Stakeholder 2 – master black belt

A

A

A

A

A

Stakeholder 3 - Team

M

M

M

M

M

Stakeholder 4 - Black belt

I/A

I/A

I/A

I/A

I/A

Stakeholder 4 – Green belt

M

M

M

M

M

Stakeholder 5 – others

R

R

R

R

R

Sponsor Stakeholder 1 – champion

roval of team decisions outside their charter/authorities, I.e., sponsor, s leader ource to the team, one whose expertise, skills, “clout” may be needed o basis. mber of team, with the authorities and boundaries of the charter. ested party, one who will need to be kept informed on direction, findings is to be forthcoming .


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Why ARMI is required? • To ensure the project leader (person leading the initiative / change) has identified key stakeholders. • Helps in clearly defining the role of each stakeholder in a change process. • Helps in involving the “right” personnel for decision in a change process. • Helps involving the “right” personnel for decision-making when required during a project or change process. • Helps in a more robust communication plan. Six Sigma Executive Overview Confidential

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BOSS

END OF MODULE 1 Thank-You

Queries????


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