Define Phase
Six Sigma Fundamentals
Six Sigma Fundamentals
Understanding Six Sigma
Six Sigma Fundamentals
Process Maps
Voice of the Customer
Cost of Poor Quality
Process Metrics
Selecting Projects
Elements of Waste
Wrap Up & Action Items
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What is a Process?
Why have a process focus?
– So we can understand how and why work gets done
– To characterize customer & supplier relationships
– To manage for maximum customer satisfaction while utilizing
minimum resources
– To see the process from start to finish as it is currently being
performed
– Blame the process, not the people
proc•ess (pros′es) n. – A repetitive and systematic
series of steps or activities where inputs are
modified to achieve a value-added output
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Examples of Processes
We go thru processes everyday. Below are some examples of
processes. Can you think of other processes within your daily
environment?
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•
•
•
•
•
•
•
•
•
•
•
•
•
Injection molding
Decanting solutions
Filling vial/bottles
Crushing ore
Refining oil
Turning screws
Building custom homes
Paving roads
Changing a tire
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Recruiting staff
Processing invoices
Conducting research
Opening accounts
Reconciling accounts
Filling out a timesheet
Distributing mail
Backing up files
Issuing purchase orders
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Process Maps
• The purpose of Process Maps is to:
– Identify the complexity of the process
– Communicate the focus of problem solving
• Process Maps are living documents and must be changed as the
process is changed
– They represent what is currently happening, not what you think is
happening.
– They should be created by the people who are closest to the process
Process Map
Start
Step A
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Step B
Step C
5
Step D
Finish
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Process Map Symbols
Standard symbols for process mapping (available in Microsoft
Office™, Visio™, iGrafx™ , SigmaFlow™ and other products):
A RECTANGLE indicates an
activity. Statements within
the rectangle should begin
with a verb
A PARALLELAGRAM shows
that there are data
A DIAMOND signifies a decision
point. Only two paths emerge from
a decision point: No and Yes
An ELLIPSE shows the start
and end of the process
An ARROW shows the
connection and direction
of flow
A CIRCLE WITH A LETTER OR
NUMBER INSIDE symbolizes
the continuation of a
flowchart to another page
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High Level Process Map
One of the deliverables from the Define Phase is a high level
process map, at a minimum it must include:
–
–
–
–
–
Start and stop points
All process steps
All decision points
Directional flow
Value categories as defined below
• Value Added:
– Physically transforms the “thing” going through the process
– Must be done right the first time
– Meaningful from the customer’s perspective (is the customer willing to
pay for it?)
• Value Enabling:
– Satisfies requirements of non-paying external stakeholders
(government regulations)
• Non-Value Added
– Everything else
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Process Map Example
The Process Map below is for a call center.
B
START
Z
REVIEW CASE
TOOL HISTORY &
TAKE NOTES
LOGON TO PC &
APPLICATIONS
LOGOFF PHONE, CHECK
MAIL,E-MAIL,VOICE MAIL
E
C
SCHEDULED
PHONE TIME?
Z
Y
TRANSFER
APPROPRIATE?
TRANSFER
CALL
Y
A
D
PHONE
TIME
N
CALL or
WALK-IN?
Z
IMMEDIATE
RESPONSE
AVAILABLE?
Y
PROVIDE
RESPONSE
PHONE&
NOTE
DATA ENDS
Y
WALK-IN
N
CALL
PUT ON HOLD,
REFER TO
REFERENCES
PHONE DATA
CAPTURE BEGINS
ANSWER?
DETERMINE WHO
IS INQUIRING
Y
ANSWER?
N
C
Y
ENTER APPROPRIATE
SSAN (#,9s,0s)
CREATE A CASE
INCL CASE TYPE
DATE/TIME, &
NEEDED BY
N
Y
Y
AUTO
ROUTE
ROUTE
N
Y
CASE
CLOSED
OFF HOLD AND
ARRANGE CALL
BACK PHONE DATA
ENDS
ADD TO
RESEARCH
LIST
B
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F
UPDATE ENTRIES
INCL OPEN DATE/TIME
N
CASE TOOL
RECORD?
ACCESS CASE TOOL
OLD
CASE
QUERY INTERNAL
HRSC SME(S)
DETERMINE NATURE
OF CALL & CONFIRM
UNDERSTANDING
N
IF EMP DATA NOT
POPULATED, ENTER
N
ACCESS CASE TOOL
D
A
EXAMINE NEXT NOTE
OR RESEARCH ITEM
N
LOGON
TO PHONE
Y
SCHEDULED
PHONE TIME?
N
8
N
TAKE ACTION
or
DO RESEARCH
Y
CLOSE CASE
W/
DATE/TIME
E
GO TO
F or E
DEPENDING ON
CASE
E
NEXT
F
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Cross Functional Process Map
When multiple departments or functional groups are involved in a complex
process it is often useful to use cross functional Process Maps.
– Draw in either vertical or horizontal swim lanes and label the functional groups
and draw the Process Map
Start
Request
transfer
ACH – Automated
Clearing House.
Attach ACH
form to
Invoice
Produce an
Invoice
No
Vendor
info in
FRS?
Yes
General
Accounting
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Fill out ACH
enrollment
form
Receive
payment
End
Match against
bank batch
and daily cash
batch
Input info into
web interface
Maintain database
to balance ACH
transfers
Accepts transactions,
transfer money, and
provide batch total
Bank
Financial
Accounting
Vendor
Department
Sending Fund Transfers
Review and
Process
transfer in
FRS
9
3.0
Journey Entry
21.0
Bank
Reconciliation
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Process Map Exercise
Exercise objective: Using your favorite process
mapping tool create a Process Map of your project
or functional area.
1. Create a high level Process Map, use enough
detail to make it useful.
•
It is helpful to use rectangular post-it’s for process
steps and square ones turned to a diamond for
decision points.
2. Color code the value added (green) and non-value
added (red) steps.
3. Be prepared to discuss this with your mentor
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Do you know your Customer?
Knowing your customer is more than just a handshake. It is
necessary to clearly understand their needs. In Six Sigma we call
this “understanding the CTQ ’s” or critical to customer
characteristics.
Critical to Customer
Characteristics
Voice Of the Customer
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Voice of the Customer
Voice of the Customer or VOC seems obvious; after all, we all
know what the customer wants. Or do we??
The customer’s perspective has to be foremost in the mind of the Six
Sigma Belt throughout the project cycle.
1. Features
•
•
Does the process provide what the customers expect and need?
How do you know?
2. Integrity
•
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Is the relationship with the customer centered on trust?
How do you know?
3. Delivery
•
•
Does the process meet the customer’s time frame?
How do you know?
4. Expense
•
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Does the customer perceive value for cost?
How do you know?
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What is a Customer?
There are different types of customers which dictates how we interact
with them in the process, in order to identify customer and supplier
requirements we must first define who the customers are:
External
– Direct: those who receive the output of your services, they
generally are the source of your revenue
– Indirect: those who do not receive or pay for the output of your
services but have a vested interest in what you do (government
agencies)
Internal
- those within your organization
who receive the output of your
work
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Value Chain
The relationship from one process to the next in an organization creates a
“Value Chain” of suppliers and receivers of process outputs.
Each process has a contribution and accountability to the next to satisfy the
external customer.
External customers needs and requirements are best met when all process
owners work cooperatively in the Value Chain.
Careful –
each move
has many
impacts!
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What is a CTQ?
• Critical to Quality (CTQ ’s) are measures that we use to capture
VOC properly. (also referred to in some literature as CTC’s – critical
to customer)
• CTQ ’s can be vague and difficult to define.
– The customer may identify a requirement that is difficult to measure
directly so it will be necessary to break down what is meant by the
customer into identifiable and measurable terms
Service:
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Competence
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Reliability
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Accuracy
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Timeliness
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Responsiveness
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Access
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Courtesy
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Communication
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Credibility
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Security
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Understanding
Product:
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Performance
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Features
•
Conformance
•
Timeliness
•
Reliability
•
Serviceability
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Durability
•
Aesthetics
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Reputation
•
Completeness
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Developing CTQ’s
Step 1
Step 2
Step 3
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Identify Customers
Listing
Segmentation
Prioritization
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Validate CTQ s
Translate VOC to CTQ s
Prioritize the CTQ s
Set Specified Requirements
Confirm CTQ s with customer
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Capture VOC
Review existing performance
Determine gaps in what you need to know
Select tools that provide data on gaps
Collect data on the gaps
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Cost of Poor Quality (COPQ)
• COPQ stands for Cost of Poor Quality
• As a Six Sigma Belt, one of your tasks will be to estimate COPQ for
your process
• Through your process exploration and project definition work you
will develop a refined estimate of the COPQ in your project
• This project COPQ represents the financial opportunity of your
team’s improvement effort (VOB)
• Calculating COPQ is iterative and will change as you learn more
about the process
No, not that
kind of cop
queue!
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The Essence of COPQ
• COPQ helps us understand the financial impact of problems created
by defects.
• COPQ is a symptom, not a defect
– Projects fix defects with the intent of improving symptoms.
• The concepts of traditional Quality Cost are the foundation for
COPQ.
– External, Internal, Prevention, Appraisal
• A significant portion of COPQ from any defect comes from effects
that are difficult to quantify and must be estimated.
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COPQ - Categories
Internal COPQ
Prevention
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• Quality Control
Department
• Inspection
• Quarantined Inventory
• Etc…
Detection
External COPQ
• Warranty
• Customer Complaint Related
Travel
• Customer Charge Back Costs
• Etc…
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Error Proofing Devices
Supplier Certification
Design for Six Sigma
Etc…
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•
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•
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Supplier Audits
Sorting Incoming Parts
Repaired Material
Etc…
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COPQ - Iceberg
Inspection
Warranty
Recode
Rework
Rejects
Visible Costs
Lost sales
Engineering change orders
Time value of money
(less obvious)
More Set-ups
OSSS LSS Yellow Belt v9.1 - Define Phase
Expediting costs
Excess inventory
Working Capital allocations
Hidden Costs
Late delivery
Long cycle times
Excessive Material
Orders/Planning
Lost Customer Loyalty
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