BUSN 3390 – Week 3
Understanding Data
– Ch 4/5
Questions from last class?
-Type them in the comment field.
Definitions
• Data
values assigned to observations or measurements
(information collected)
-Each characteristic of interest is called a variable
• Information
data that are transformed into useful facts that can be
used for a specific purpose, such as making a decision
Module 1 - Define Phase
2
Central Tendency
Symmetric
Skewed
LeftSkewed
Mean < Median
Mean = Median
Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall
3-3
RightSkewed
Median < Mean
Measures of Variability
• Measures of variability show how much
spread is present in the data.
Measures of Variability
Range
Variance
Standard
Deviation
For a sample
For a population
For a sample
For a population
Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall
3-4
Introduction
• Statistical Quality Control uses statistical techniques &
sampling to monitor & test the quality of goods & services.
– Acceptance sampling determines to accept or reject a product
– Statistical process control determines if process is operating
within acceptable limits.
• Inspection is the appraisal of goods/services against standards.
The best companies
design quality into the process,
thereby reducing the need for
inspection/tests.
5
Managing Quality
Acceptance
Sampling
Process
Control
INPUTS
TRANSFORMATION
PROCESS
“CONTROL”
Acceptance
Sampling
OUTPUT
•Goods
•Services
http://brians.hubpages.com/hub/Statistical-Process-Control3-6
Product-Sampling
Statistical Process Control Planning
Process
1.
Define important quality characteristics,
and how to measure
2.
For each characteristic,
a.
Determine
a quality
control
point
b.
Plan
i.
how to
inspect
ii.
how much
to inspect
iii.
where
centralized
or on-site
c.
Plan the
corrective
action
process.
7
Inspection
• How Much/How Often
• Where/When
• Centralized vs. On-site
8
Cost
Inspection Costs
Total Cost
Cost of
inspection
Cost of
passing
Optimal defectives
Amount of Inspection
9
Examples of Inspection Points
Type of
business
Fast Food
Inspection
points
Cashier
Counter area
Eating area
Building
Kitchen
Hotel/motel Parking lot
Accounting
Building
Main desk
Supermarket Cashiers
Deliveries
Characteristics
Accuracy
Appearance, productivity
Cleanliness
Appearance
Health regulations
Safe, well lighted
Accuracy, timeliness
Appearance, safety
Waiting times
Accuracy, courtesy
Quality, quantity
10
Statistical Process Control (SPC)
Steps
Take periodic
samples from
process
Compare to
predetermined
limits
If outside limits,
stop process and
take corrective
action
If inside limits,
continue process
11
II. Basics of SPC
• Random variation: Natural variations in the output of
process, created by countless minor factors
Main task of
SPC is to
distinguish
assignable
from random
variation
• Assignable variation: A variation whose source can
be identified
Sampli
ng
distributio
Process
n
distributio
n
Non-random
Variation
Lower
control
limit
Proce
ss
Mean
Random
Variation
Non-random
Variation
Upper
control
limit
Control limits
2 or 3 STD
DEV of process
mean.
12
The Normal Distribution
Only a small percentage of sample means
fall more than 2 or 3 standard deviations
from the process mean.
Upper
Control
Limit
Lower
Control
Limit
95%
99.74%
-3 -2 -1 =0 1
2 3
3-13
Control Chart
https://www.youtube.com/watch?v=5hSUyEYJdGA
14
II. Basics of SPC
When to Apply SPC
Critical Processes
Harmful, costly
History
Tendency to variation
Critical Point in Process
Prior to expensive process
Prior to concealment
Ease of testing
Final Inspection
Prior to customer receipt
3-15
Type I and Type II Errors
In control
In control
No Error
Out of
control
Type II Error
(consumers risk)
Out of control
Type I error
(producers risk)
No error
16
Module 1 - Define Phase
17
Before next class
Before coming to next class – self review of slides 20-48 and post responses for
the 2 week 3 discussion board threads:
1. After reviewing the following
video: https://www.youtube.com/watch?v=2VogtYRc9dA
– Consider how the video relates to continuous improvement. If you were to
describe it in 3 sentences to someone who had not seen it, how would you
describe it?
2.
After reviewing the slides and watching the following videos:
https://www.youtube.com/watch?v=WY_r2weeJcM
https://www.youtube.com/watch?v=RroptWyIPcM
– Consider what is the difference between a process being out of control and
capable? How are the concepts related?
Skim through slides 49-91 to get an idea of what a real company did during the
define phase
• Make sure you have submitted Assignment # 3 – the 5s
***Make sure you are in class next week***we are doing an exercise that will
greatly help you be able to complete the next assignment.
Module 1 - Define Phase
18
III. Control Charts
https://www.youtube.com/watch?v=WY_r2weeJc
M
VARIABLES
ATTRIBUTES
19
III. Control Charts for Attributes
p-Charts – Proportion of Defects
• Observations placed into two categories
Good or Bad
• Pass or Fail
• Operate or doesn’t operate
•
c-Charts – Number of Defects per unit
# Occurrences/Unit of Measure are Counted but
NOT Non-Occurrences
COUNTING
 EXAMPLES



Scratches, chips, dents, or errors per item
Bacteria or pollutants per unit of volume
Calls, complaints, failures per unit of time
n=1
20
III. Control Charts for Attributes
• p-Chart – for sample proportion of defectives in a process
• c-Chart – for the number of defects per unit
UCLp  p  z p UCLc  c  z c
LCL p  p  z p LCLc  c  z c
p 
p1  p 
n
z
p
p
n
=
=
=
=
# std deviations from process avg
sample proportion defective
std deviation of sample proportion
sample size
21
III. Control Charts for Attributes
Data for
p-Chart
p-Chart
NUMBER OF PROPORTION
SAMPLEDEFECTIVES DEFECTIVE
Average
proportion
(p) of
Defectives?
200
(20*100)
.10 = p
1
2
3
:
:
20

6
0
4
:
:
18
200
.06
.00
.04
:
:
.18
20 samples of 100 pairs of jeans
Copyright 2009 John Wiley & Sons, Inc.
3-22
III. Control Charts for Attributes
Construction of p-Chart
p=
total defectives
= 200 / 20(100) = 0.10
total sample observations
UCL = p + z
p(1 - p)
n
= 0.10 + 3
0.10(1 - 0.10)
100
= 0.10 - 3
0.10(1 - 0.10)
100
UCL = 0.190
LCL = p - z
p(1 - p)
n
LCL = 0.010
3-23
III. Control Charts for Attributes
0.20
UCL = 0.190
p-Chart
Proportion defective
0.18
0.16
0.14
0.12
0.10
p = 0.10
0.08
0.06
0.04
0.02
LCL = 0.010
2
4
6
8 10 12 14 16 18 20
Sample number
3-24
III. Control Charts for Attributes
http://www.vertex42.com/Files/download2/
excel.php?file=control-chart.xls
SPC with Excel
3-25
III. Control Charts for Attributes
c-Chart
UCL = c + zc
LCL = c - zc
c =
c
c = # of defects per sample
3-26
III. Control Charts for Attributes
Number of defects in 15 sample rooms
cChart
SAM
PLE
1
2
3
:
:
15

190
NUMBER
OF
DEFECTS
12
8
16
:
:
15
190
c =
15
= 12.67
UCL = c + zc

= 12.67 + 3

= 23.35
12.67
LCL = c - zc

= 12.67 - 3

= 1.99
12.67
3-27
III. Control Charts for Attributes
24
c-Chart
Number of defects
UCL = 23.35
21
18
c = 12.67
15
12
9
6
LCL = 1.99
3
2
4
6
8 10
Sample number
12
14
16
3-28
III. Control Charts for Variables
Control Charts for Variables
Mean chart (x-Chart )
 Measures sample Average
Range chart (R -Chart )
 Measures sample Dispersion
3-29
III. Control Charts for Variables
X-Bar Chart
=
UCL = x + zx
=
=
x =
=
LCL = x - zx
x1 + x2 + ... xn
n
x = average of sample means
Z = Standard Normal deviate (usually z = 3)
 = Process standard deviation

x = Std dev of sampling distrib of sample means =
n
3-30
III. Control Charts for Variables
R- Chart
UCLR = D4R
LCLR = D3R
R
R= k


R = range of each sample
k = number of samples
3-31
III. Control Charts for Variables
X-Bar Chart Example
OBSERVATIONS (SLIP- RING DIAMETER, CM)
SAMPLE k
1
2
3
4
5
x
R
1
2
3
4
5
6
7
8
9
10
5.02
5.01
4.99
5.03
4.95
4.97
5.05
5.09
5.14
5.01
5.01
5.03
5.00
4.91
4.92
5.06
5.01
5.10
5.10
4.98
4.94
5.07
4.93
5.01
5.03
5.06
5.10
5.00
4.99
5.08
4.99
4.95
4.92
4.98
5.05
4.96
4.96
4.99
5.08
5.07
4.96
4.96
4.99
4.89
5.01
5.03
4.99
5.08
5.09
4.99
4.98
5.00
4.97
4.96
4.99
5.01
5.02
5.05
5.08
5.03
0.08
0.12
0.08
0.14
0.13
0.10
0.14
0.11
0.15
0.10
50.09
1.15
Example 15.4
3-32
II. Control Charts
R-Chart Example
Calculate R
Retrieve Factor Values D3 and D4 from Table
UCL = D4R = 2.11(0.115) = 0.243
LCL = D3R = 0(0.115) = 0
Example 15.3
3-33
III. Control Charts
R-Chart Example
0.28 –
Range
0.24 –
UCL = 0.243
0.20 –
0.16 –
R = 0.115
0.12 –
0.08 –
0.04 –
0–
LCL = 0
|
|
|
1 2
3
|
|
|
|
4
5
6 7
Sample number
|
8
|
9
|
10
3-34
III. Control Charts for Variables
https://www.youtube.com/watch?v=nEE4SvRd
76g
SPC with Excel
3-35
Process Variation – Funnel
Experiment
https://www.youtube.com/watch?v=2VogtYRc9dA
• Variation is natural!
• Don’t over react!!
36
V. Process Capability
https://www.youtube.com/watch?v=RroptWyIPcM
Design Specifications (“Specs”, Tolerances)
Range of Acceptable Values
Established by:
– Engineering Design
– Customer Requirements
Process Variability-Natural Variation in a Process
Process Capability-Process Variation vs. Specification
37
Process Capability Indices
specification width
Process capability ratio=
process width
If the process is centered use Cp
Cp =
Upper specification – lower specification
6
If the process is not centered use Cpk
Smaller of:
Process mean – Lower specification
3
and Upper specification – Process mean
3
38
Capability Example
The design specification for the width of a part is between 101
mm and 101.8 mm (= .8 mm). Which of these machines are
capable?
Standard Machine
Machine
Machine Deviation Variability
Capability

6
Cp = spec/6
A
0.13
0.78
0.80/0.78 = 1.03
B
0.08
0.48
0.80/0.48 = 1.67
C
0.16
0.96
0.80/0.96 = 0.83
Cp > 1.33 is desirable
Cp = 1.00 process is barely capable
Cp < 1.00 process is not capable
39
3
9
Real example of Process
Capability Ration and Index
calculated
• https://www.youtube.com/watch?v=fo1CT0DZAsE
40
Process Capability Analysis
Lower
Specification
Upper
Specification
=
1
Process variability matches
specifications
Lower
Specification
Upper
Specification
Process variability well
within specifications
>1
Lower
Upper
Specification Specification
What can be done?
<1
Process variability exceeds
specifications
41
Capability Analysis
Capable = process output falls
within specifications
• If incapable:
1.
2.
3.
4.
redesign process or reduce variability,
use alternative process,
use 100-percent inspection, or
relax design specification.
42
Process Capability Example: Cookie
Packages
•
•
•
A company creates small packages of cookies in a 16 gram package.
Government standards state that weights must be within ± 5 percent of
the weight advertised on the package.
The design specifications are:
Upper design specification = 16 + .05(16) = 16.8 grams
Lower design specification = 16 – .05(16) = 15.2 grams
Inspectors test 1,000 packages of cookies and find an average weight
of 15.875 grams with a standard deviation of .529 grams.
Is the process capable?
43
Process Capability Example: Cookie
Packages
• Specification Limits
– Upper Spec = 16.8 g
– Lower Spec = 15.2 g
• Observed Weight
– Mean = 15.875 g
– Std Dev = .529 g
C pk
15.875  15.2 16.8  15.875 
 Min 
;

3(.529)
 3(.529)

C pk  Min.4253; .5829
C pk  .4253
44
What does a Cpk of .4253 mean?
• An index that shows how well the units being
produced fit within the specification limits.
• Process considered capable if Cpk  1
• This process will produce a relatively high number
of defects.
• Many companies look for a Cpk of 1.3 or better…
Six-Sigma companies want 2.0!
Bigger is
Better!
45
Six Sigma Quality
• Goal:
– Cpk = 2.00 = only 3.4 units per million outside design specification
46
Improving Process Capability
Simplify
Standard
-ize
Mistakeproof
Upgrade
equipment
Automate
47
Pre-reading for
Week 4
Module 1 - Define Phase
48
Organization Chart - Logistics
Module 1 - Define Phase
49
Case Study Summary
• CEO requests 15% reduction of operating costs for
•
•
•
•
company
This translates to 10% reduction of operating costs for the
Logistics division
The Midwest region of Logistics is requested to reduce
operating costs by 3.6% to meet CEO’s request
Midwest region forms a Lean Six Sigma team
Lean Six Sigma team chooses trailer utilization as process
to be improved with a goal of cost reduction
Module 1 - Define Phase
50
Core Project Team Organization
Anita Smith
Team Leader Black Belt
Midwest VP of Trans.
Module 1 - Define Phase
Project
Champion
Joe Thompson
Midwest VP of
Distribution
Master
Black Belt
Jim Pulls
Master Black Belt
Process
Sponsors
Robert Quincy
Sr. Dispatch Mgr.
51
Responsibility Matrix (RASIC) – Define Phase
Project Champion
Joe Thompson
Finance
Joe Thompson
Process Owner
Robert Quincy
CI Mentor/MBB
Jim Pulls
Team Leader
Anita Smith
Form Core Team
R
I
A
A
C
Define Activities and Deliverables
For Define Phase
R
I
A
A
I
Responsibility Matrix
R
I
A
C
I
Project Charter
R
S
A
C
S
SIPOC
R
S
A
C
I
Responsible (R)
Approval (A)
Support (S)
Inform (I)
Consult (C)
Develop Initial Documents
Identify Stakeholders & Communication Plan
Module 1 - Define Phase
Stakeholder Analysis Matrix
R
S
A
C
S
TPC Analysis
R
S
A
C
S
Customers/Stakeholders Matrix
R
S
A
C
S
Communication Plan
R
S
A
C
S
52
Responsibility Matrix (RASIC) – Define Phase
Finance
Joe Thompson
Project Champion
Joe Thompson
CI Mentor/MBB
Jim Pulls
Process Owner
Robert Quincey
Team Leader
Anita Smith
R
S
A
C
S
Team Organization Chart
R
S
A
C
S
Revise Responsibility Matrix
R
I
A
C
I
Items for Resolution (IFR) Form
R
S
A
C
S
Establish Ground Rules
R
S
A
C
S
R
S
A
C
S
Responsible (R)
Approval (A)
Support (S)
Inform (I)
Consult (C)
Perform Initial VOC and Identify CTS
CTS Summary
Select Team and Launch the Project
Create Project Plan
Macro Project Plan
Module 1 - Define Phase
53
Process Improvement Statement
• The Logistics Midwest
•
Region Lean Six-Sigma
team will work on improving
the utilization of trailers
within the region.
The basic process for
trailer utilization is the
same no matter who ships
or receives.
Store Receiving
Vendor
Shipping
Module 1 - Define Phase
Warehouse
Receiving
And Shipping
54
Logistics Operating Cost by Region
Module 1 - Define Phase
55
Project Charter
Initial Project Overview
Project Name: Trailer Utilization Optimization
Project Overview:
In alignment with the company’s strategic goals, the Logistics Executive team has jointly
set the objective to reduce internal operating costs by 10%. This has translated to a 3.6% reduction of operating
costs in the Midwest Logistics Region. The Midwest Logistics Region’s Lean Six Sigma team has examined
multiple projects that may impact the breakthrough goal and has identified optimizing trailer utilization as a high
priority.
Problem Statement:
The Midwest Logistics Region needs to reduce operating costs by 3.6% ($324 million).
Improving trailer utilization has been identified as the quickest way to reduce costs within their direct control. The
Lean Six Sigma team needs to analyze the current state of trailer utilization and then suggest improvements based
on an optimized process, within 4-6 months.
If the Midwest Logistics Region fails to show an opportunity to reduce operating costs as directed by the
company’s strategic plans within 4-6 months, the region would have to reduce operating costs by other means,
such as labor cutbacks, procurement freezes, and contract renegotiations. By staying in the current state the
Midwest Logistics Region would have to choose unfavorable cost cutting methods which typically impact the
productivity of the operation and may not meet the $324 million goal. If productivity is lost, shipments may not
make it to the market on-time thus reducing the total sales of the company. The final impact would be a devaluation
of Wal-Mart's stock due to its inability to meet the 10% profit increase projection.
Customer/Stakeholders:
Transportation Personnel, Warehouse Receiving Personnel, Warehouse Shipping
Personnel, Driver, Store Receiving Personnel, Vendor Shipping Personnel
What is important to these customers – CTS:
Up-to-date trailer status, optimized trailer dispatch
plan, open communication of critical or jeopardy events, realistic process time estimates
Module 1 - Define Phase
56
Project Charter
Initial Project Overview
Goal of the Project:
Reduce trailer utilization costs by 10.3%
Scope Statement :
The project is limited to the Midwest region which Anita Baker and Joe Thompson are
responsible. The Lean Six Sigma team will examine and recommend changes to the major process steps for the
use of a trailer: dispatch, load, transport, dispatch update, and unload. The investigation is limited to the two
methods of trailer use: live load/unload and drop’n hook. These methods of use may occur at a vendor, distribution
center, or store.
Projected Financial Benefit (s):
Based on an operating budget of $9 billion, this project will attempt to
avoid costs connected with trailer use in the Midwest region. The avoidance target is $324 million.
Module 1 - Define Phase
57
Project Charter
Potential Risks
Probability of Risk
(H/M/L)
Impact of Risk
(H/M/L)
Risk Mitigation Strategy
Lack of Support
M
H
Build Communication Plan
Data not Available
L
H
Retain Risk
Resistance to
Change from
Transportation Office
M
H
Include in change strategy
Project Resources:
Milestones
Team Leader: Anita Smith
Phase
Division and Dept.: Midwest Logistics Region
Define
2/2
Process Owner: Robert Quincy, Sr. Dispatch Manager
Measure
3/2
Project Champion: Joe Thompson
Analyze
4/6
CI Mentor/ MBB: Jim Pulls
Improve
4/15
Finance: Joe Thompson
Control
4/27
Team Members/Support Resources: Midwest Transportation Office
Team Leaders (6)
Seek Approval
5/5
Module 1 - Define Phase
Est. Completion Date
58
Trailer Transportation Routes
Module 1 - Define Phase
59
SIPOC
Suppliers
Inputs
Processes
Outputs
Customers
(Providers of the
required
resources)
(Resources required by
the process)
(Top level description of the
activity)
(Deliverables from
the process)
(Anyone w ho receives a deliverable
from the process)
Requirem ents
Driver Coord.
Dispatch Plan,
Phone, Tractor,
Trailer, Driver
Shipping
Personnel
Packing List,
Product
Driver
Travel Plan,
Tractor, Trailer
Driver
Cell phone
Driver Coord.
Dispatch Plan,
Phone
Driver
Travel Plan,
Tractor, Trailer
Receiving
Personnel
Module 1 - Define Phase
Requirem ents
Dispatch to Dock Loaction,
Shipping
Final Destination,
Dock
Trailer at Dock
Arrive On
Schedule
(AOS)
Shipping
Personnel
Leave On
Schedule
(LOS)
Driver
Trailer within
staging zone
AOS
Driver Coord.
Trailer Ready to
Load Product
Transport
Travel within
legal limits
Transport
Trailer
Driver
Reports
Status
Driver
Receives
Dispatch
Update
Arrives at
Receiving
Dock
verbal
communication
30 min. before
arriving at rec.
dock
Driver Coord.
Rec. Dock
Location, Trailer
Status, Next
Assignment
10 min. before
arriving at rec.
dock
Driver
Trailer Ready to
Unload
AOS
Receiving
Personnel
Product
Unload
Empty Trailer,
Product, Trailer
Status Update
LOS
Driver,
W'house/Store,
Driver Coord.
60
Stakeholder Analysis
Stakeholders
Who Are They?
Potential Impact or
Concerns

Transportation
P
Personnel
R
I
M
A
R
Y
Driver
Module 1 - Define Phase
This includes the general
manager, dispatch manager,
and driver coordinators for
each transportation office in
the Midwest region.



This includes any driver moving a
Wal-Mart owned trailer.


Manage
optimized plan
Clear and timely
communication
Able to adapt to
changing
conditions
effecting plan
+
Must champion
optimized plan
First point of
contact in field
Clear and timely
communication
+
+
-
-
61
Stakeholder Analysis
Stakeholders
Warehouse
Receiving/
Shipping
Personnel
P
R
I
M
A
R Vendor
Shipping
Y
Personnel
Module 1 - Define Phase
Who Are They?
This includes the warehouse
manager, the receiving
manager, and the shipping
manager. It also includes dock
personnel that load and unload
the trailer.
Potential Impact or
Concerns





This includes the operations
manager, shipping manager,
and the dock personnel.

Indirect link
Must know goal
of optimized
plan
Must have buy in
-
Indirect link
Must know goal
of optimized
plan
Must have buy in
-
-
-
62
Stakeholder Analysis
Stakeholders
P
R
I
Store Receiving
M
Personnel
A
R
Y
Module 1 - Define Phase
Who Are They?
Potential Impact or
Concerns


This includes the store manager
and receiving dock personnel.


Indirect link
Must know goal
of optimized
plan
Must have buy in
Needs goods
+
63
TPC Analysis
Identifying, labeling & understanding sources of resistance
Transportation Personnel
Source of
resistance
Technical
Political
Cultural
Definition causes of
resistance
Aligning and structuring
organization
•Habit and inertia
•Difficulty in learning new skills
•Sunk costs
•Lack of skills
Allocating power and resources
•Threat to the old guard from the
new guard
•Relationships
•Power and authority imbalance or
self-preservation
Articulating the glue or cultural
norms
•Selective perception
•Locked into old “mindset”
•Afraid of letting go
Examples from our project
•Learn a new dispatch planning and
execution process
20
•Lean Six Sigma team doesn’t know my
business.
40
•Why fix what works?
* Rating – Divide 100 points by how often this type of resistance exists in your business.
Module 1 - Define Phase
Rating*
40
Total = 100
64
TPC Analysis
Identifying, labeling & understanding sources of resistance
Driver
Source of
resistance
Technical
Political
Cultural
Definition causes of
resistance
Aligning and structuring
organization
•Habit and inertia
•Difficulty in learning new skills
•Sunk costs
•Lack of skills
Allocating power and resources
•Threat to the old guard from the
new guard
•Relationships
•Power and authority imbalance or
self-preservation
Articulating the glue or cultural
norms
•Selective perception
•Locked into old “mindset”
•Afraid of letting go
Examples from our project
0
•Doesn’t want to be watched so close
•Thinks the schedule may become too
rigid
60
•Doesn’t want performance data tied to
merit increases
* Rating – Divide 100 points by how often this type of resistance exists in your business.
Module 1 - Define Phase
Rating*
40
Total = 100
65
TPC Analysis
Identifying, labeling & understanding sources of resistance
Warehouse Rec. and Ship. Personnel
Source of
resistance
Technical
Political
Cultural
Definition causes of
resistance
Aligning and structuring
organization
•Habit and inertia
•Difficulty in learning new skills
•Sunk costs
•Lack of skills
Allocating power and resources
•Threat to the old guard from the
new guard
•Relationships
•Power and authority imbalance or
self-preservation
Articulating the glue or cultural
norms
•Selective perception
•Locked into old “mindset”
•Afraid of letting go
Examples from our project
0
•Not happy to have transportation
pushing warehouse personnel
20
•Forced to work faster loading or
unloading, may be unsafe and reduced
quality
•Reduced number of personnel per load
or unload event
* Rating – Divide 100 points by how often this type of resistance exists in your business.
Module 1 - Define Phase
Rating*
80
Total = 100
66
TPC Analysis
Identifying, labeling & understanding sources of resistance
Vendor Shipping Personnel
Source of
resistance
Technical
Political
Cultural
Definition causes of
resistance
Aligning and structuring
organization
•Habit and inertia
•Difficulty in learning new skills
•Sunk costs
•Lack of skills
Allocating power and resources
•Threat to the old guard from the
new guard
•Relationships
•Power and authority imbalance or
self-preservation
Articulating the glue or cultural
norms
•Selective perception
•Locked into old “mindset”
•Afraid of letting go
Examples from our project
•Worried that trailers will be taken at
unpredictable or inconsistent times
* Rating – Divide 100 points by how often this type of resistance exists in your business.
Module 1 - Define Phase
Rating*
100
Total = 100
67
TPC Analysis
Identifying, labeling & understanding sources of resistance
Store Receiving Personnel
Source of
resistance
Technical
Political
Cultural
Definition causes of
resistance
Aligning and structuring
organization
•Habit and inertia
•Difficulty in learning new skills
•Sunk costs
•Lack of skills
Allocating power and resources
•Threat to the old guard from the
new guard
•Relationships
•Power and authority imbalance or
self-preservation
Articulating the glue or cultural
norms
•Selective perception
•Locked into old “mindset”
•Afraid of letting go
Examples from our project
•Afraid new standards will be set for
unloading trailers which are too difficult
and dangerous
* Rating – Divide 100 points by how often this type of resistance exists in your business.
Module 1 - Define Phase
Rating*
100
Total = 100
68
Customers/Stakeholder
Identify stakeholders and their position on the change
initiative
Transportation Office
Stakeholders
Strongly
Against
Moderate
Against
Neutral
Moderate
Support
Strongly
Support
X O
General Manager
Comm. Strategy
Project Launch
Keep Informed
Advocate within
Strategy
Mgr.
Team
Member 1
office
Dispatch
Manager
Driver
Coordinator
X
X
O
Project Launch
Invite at all levels
Project
Champ.
O
Project Launch
Keep Informed
Invite to Reviews
Team
Member 1
Inform of Project
Driver
X
X= Current
Module 1 - Define Phase
O
Launch
Keep Informed
Town Hall
Team
Member 1
O=Future
69
Customers/Stakeholder
Identify stakeholders and their position on the change
initiative
Warehouse
Stakeholders
Strongly
Against
Warehouse
Manager
Dock Personnel
Neutral
X
Receiving
Manager
Shipping
Manager
Moderate
Against
Strongly
Support
O
X
O
X
O
X
X= Current
Module 1 - Define Phase
Moderate
Support
O
Comm. Strategy
Strategy
Mgr.
Project Launch
Invite at all levels
Town Hall
Project
Champ.
Project Launch
Keep Informed
Invite to Reviews
Town Hall
Project Launch
Keep Informed
Invite to Reviews
Town Hall
Inform of Project
Launch
Town Hall
Team
Member 3
Team
Member 3
Team
Member 3
O=Future
70
Customers/Stakeholder
Identify stakeholders and their position on the change
initiative
Vendor
Stakeholders
Strongly
Against
Moderate
Against
Operations
Manager
Shipping
Manager
Dock Personnel
Neutral
X
X
X
X= Current
Module 1 - Define Phase
Moderate
Support
Strongly
Support
Comm. Strategy
O
Project Launch
Inform of reviews
Town Hall
Team
O
Project Launch
Inform of reviews
Town Hall
Team
Inform of Project
Team
O
Launch
Town Hall
Strategy
Mgr.
Member 4
Member 4
Member 4
O=Future
71
Customers/Stakeholder
Identify stakeholders and their position on the change
initiative
Store
Stakeholders
Strongly
Against
Store Manager
Receiving Dock
Personnel
Moderate
Against
X
Neutral
Strongly
Support
X
Comm. Strategy
Strategy
Mgr.
Project Launch
Inform of Monthly Project
meetings &
O
X= Current
Module 1 - Define Phase
Moderate
Support
reviews
Town Hall
O
Inform of Project
Launch
Town Hall
Leader
Team
Member 2
O=Future
72
Communication Plan - RASIC
S
A
C
S
S
S
S
S
S
S
S
S
S
S
S
S
S
S
S
S
S
S
S
S
R
S
A
C
S
A
S
S
R
A
R
Team Member 6
R
Team Member 5
A
S
Team Member 4
Send out a Copy of the Report
S
Team Member 3
Project Launch Meeting
C
Team Member 2
Send out a Copy of the Report
A
Team Member 1
Milestone Review
S
Finance
Joe Thompson
Send out the Agenda & Minutes
R
CI Mentor/MBB
Jim Pulls
Monthly Meeting
Project Champion
Joe Thompson
Send out the Agenda & Minutes
Process Owner
Robert Quincey
Weekly Meeting
Project Leader
Anita Smith
Responsible (R)
Approval (A)
Support (S)
Inform (I)
Consult (C)
S
R
S
R
A
S
A
S
R
Town Hall (WebEx) 1 - Driver
S
I
A/I
I
I
R
I
I
I
I
I
Town Hall (WebEx) 2 - Store
S
I
A/I
I
I
I
R
I
I
I
I
Town Hall (WebEx) 3 Warehouse
S
I
A/I
I
I
I
I
R
I
I
I
Town Hall (WebEx) 4 - Vendor
S
I
A/I
I
I
I
I
I
R
I
I
Final Report
R
S
A
C
S
S
S
S
S
S
S
Send out a Copy of the Report
Module 1 - Define Phase
A
R
73
Communication Plan Matrix - Events
X
X
X
X
Project Launch
Meeting
X
X
X
X
Town Hall (WebEx) 4 Vendor
X
X
Town Hall (WebEx) 2 Store
Town Hall (WebEx) 3 Warehouse
Store
Rec. Personnel
X
Store
General Mgrs.
Vendor
Shipping Mgr.
X
Vendor
Dock Personnel
Vendor
Operations Mgr.
X
Warehouse
Dock Personnel
X
X
Milestone Review
Town Hall (WebEx) 1 Driver
Warehouse
Shipping Mgrs.
X
Warehouse
Rec. Mgrs.
Monthly Meeting
Warehouse
General Mgrs.
X
Driver
Weekly Meeting
Transportation
Driver Coord.
Transportation
Dispatch Mgrs.
Invited (X)
Transportation
General Mgrs.
Level of
Participation
X
X
X
X
X
X
X
Final Report
Presentation
Module 1 - Define Phase
74
Communication Plan Matrix - Deliverables
Store
Rec. Personnel
Store
General Mgrs.
Vendor
Dock Personnel
Vendor
Shipping Mgr.
E
E
E
E
Transportation
Driver Coord.
Driver
Warehouse
General Mgrs.
Warehouse
Rec. Mgrs.
Warehouse
Shipping Mgrs.
Monthly Meeting
Agenda & Minutes
E
E
E
E
E
E
E
Milestone Report
H
E
E
E
H
E
E
Project Launch Report
H
E
E
E
H
E
E
E
E
Final Report
H
E
E
E
H
E
E
E
E
Warehouse
Dock Personnel
Transportation
Dispatch Mgrs.
E
E
Transportation
General Mgrs.
Vendor
Operations Mgr.
E
E
E
Hardcopy (H)
Email (E)
75
Module 1 - Define Phase
E
Weekly Meeting
Agenda & Minutes
Method of
Communication
Initial Voice of the Customer (VOC)
• Perform VOC Needs Brainstorm
• Gathered from
– Process Sponsor
– Core team discussions
• Relative to problem statement
• Past discussions with customers
Module 1 - Define Phase
76
Initial Voice of the Customer (VOC)
Customer/Stakeholder
Needs
Transportation
Personnel
Accurate information
Timely information
Standard process
Standard language
Get inventory to market
when/before it demands
Driver
Accurate assignments
Help 24/7 if plan changes
Module 1 - Define Phase
77
Initial Voice of the Customer (VOC)
Customer/Stakeholder
Needs
Warehouse
Rec/Ship Personnel
Accurate arrival times
Easy method to update
dispatch
Correct dock/trailer
assignments
Vendor Ship
Personnel
Standard trailer pick-up,
window of time
Module 1 - Define Phase
78
Initial Voice of the Customer (VOC)
Customer/Stakeholder
Store Rec.
Personnel
Module 1 - Define Phase
Needs
Accurate arrival times
Realistic unload cycle
times
79
Initial Critical to Satisfaction (CTS)
Characteristics
Needs
CTS Factor
Accurate information
Timely information
Up-to-Date
Trailer Status
Standard trailer pickup, window of time
Accurate assignments
Accurate arrival times
Correct dock/trailer
assignments
Optimized
Trailer Dispatch
Plan
Module 1 - Define Phase
80
Initial Critical to Satisfaction (CTS)
Characteristics
Needs
CTS Factor
Help 24/7 if plan
changes
Easy method to
update dispatch
Open Communication
of Critical or Jeopardy
Events
Realistic unload
cycle-times
Realistic Process Time
Estimates Expectations
Module 1 - Define Phase
81
Initial Critical to Satisfaction (CTS)
Characteristics
Needs
CTS Factor
Get inventory to
market when/before it
demands
Meet Store Customer’s
Demand
Standard process
Standard language
Documented Standard
Process
Module 1 - Define Phase
82
Initial Critical to Satisfaction (CTS)
Characteristics
•
•
•
•
•
•
Module 1 - Define Phase
Up to Date Trailer Status
Optimized Trailer Dispatch Plan
Open Communication of Critical or
Jeopardy Events
Realistic Process Time
Estimates/Expectations
Meet Store Customer’s Demand
Documented Standard Process
83
Project Team Organization
Anita Smith
Team Leader Black Belt
Midwest VP of Trans.
Team
Member 1
Paul Jones
Driver Coord.
MW Transpo 1
Team
Member 2
Dave Leader
Dispatch Mgr.
MW Transpo 2
Module 1 - Define Phase
Team
Member 3
Simone Fillbert
General Mgr.
MW Transpo 3
Team
Member 4
Cindy Patch
Dispatch Mgr.
MW Transpo 4
Project
Champion
Joe Thompson
Midwest VP of
Distribution
Master
Black Belt
Jim Pulls
Master Black Belt
Process
Sponsors
Robert Quincy
Sr. Dispatch Mgr.
Team
Member 5
Chris Roberts
Driver Coord.
MW Transpo 5
Team
Member 6
Mike O’Conner
Dispatch Mgr.
MW Transpo 6
84
Team Member Ground Rules
• Everyone is responsible for the success of the project.
• Be on time and prepared.
• Be a team player.
• Respect each other's ideas.
• Question and participate.
• Respect differences.
• Keep an open mind and appreciate other points of view.
• Be willing to make mistakes or have a different opinion.
• Share your knowledge, experience, and time.
• Stay focused on the task and the person speaking.
• Communicate openly and don’t assume someone knows what
you know.
• Don't interrupt.
• Keep up-to-date.
• Have Fun!
Module 1 - Define Phase
85
Responsibility Matrix (RASIC) – Define Phase
Define Activities and Deliverables
For Define Phase
R
I
A
A
I
Responsibility Matrix
R
I
A
C
I
Project Charter
R
S
A
C
S
SIPOC
R
S
A
C
I
Team Member 6
Mike O’Conner
C
Team Member 5
Chris Roberts
A
Team Member 4
Cindy Patch
A
Team Member 3
Simone Fillbert
I
Team Member 2
Dave Leader
R
Team Member 1
Paul Jones
Project Champion
Joe Thompson
Finance
Joe Thompson
Process Owner
Robert Quincey
CI Mentor/MBB
Jim Pulls
Team Leader
Anita Smith
Form Core Team
Responsible (R)
Approval (A)
Support (S)
Inform (I)
Consult (C)
Develop Initial Documents
Identify Stakeholders & Communication Plan
Stakeholder Analysis Matrix
R
S
A
C
S
TPC Analysis
R
S
A
C
S
Customers/Stakeholders Matrix
R
S
A
C
S
Communication Plan
R
S
A
C
S
Module 1 - Define Phase
86
Responsibility Matrix (RASIC) – Define Phase
(cont.)
Team Member 1
John Doe
Team Member 2
John Doe
Team Member 3
John Doe
Team Member 4
John Doe
Team Member 5
John Doe
Team Member 6
John Doe
Finance
Joe Thompson
Project Champion
Joe Thompson
CI Mentor/MBB
Jim Pulls
Process Owner
Robert Quincey
Team Leader
Anita Smith
R
S
A
C
S
Team Organization Chart
R
S
A
C
S
Revise Responsibility Matrix
R
I
A
C
I
S
S
S
S
S
S
Items for Resolution (IFR) Form
R
S
A
C
S
I
I
I
I
I
I
Establish Ground Rules
R
S
A
C
S
S
S
S
S
S
S
R
S
A
C
S
S
S
S
S
S
S
Responsible (R)
Approval (A)
Support (S)
Inform (I)
Consult (C)
Perform Initial VOC and Identify CTS
CTS Summary
Select Team and Launch the Project
Create Project Plan
Macro Project Plan
Module 1 - Define Phase
87
Macro Project Timeline
FEB
JAN
Define
Activities
• Team
Organization
Activities
• Project
Charter
•Stakeholder
Analysis
•SIPOC
2/2
Define
Report
Due
Module 1 - Define Phase
MAR
Measure
Activities
•Process Flow
Diagrams
•Survey Execution
•Database Data
Collection
•CTQs
3/2
Measure
Report
Due
APR
Analyze
Activities
• Cause and
Effect
Brainstorming
•Cost Benefit
Analysis
MAY
Improve/
4/6
Control
Analyze
Activities
Report • Improvement
Due
Plans
4/27
Improve/
Control
Report
•Revised
Due
Process flow
5/5
Diagrams
Final
•Control Plan
Pres.
Recommendati
to SVP
ons
88
Project Plan - Events
Event
Dates
Form Core Team
Jan 4
Project Launch Meeting
Jan 23
Define Review
Feb 2-3
Town Hall - Driver
Feb 5
Town Hall - Store
Feb 6
Town Hall - Warehouse
Feb 7
Town Hall - Vendor
Feb 8
Measure Presentation
Mar 2-3
Data Analysis Complete
Mar 30
Analyze Presentation
Apr 6-7
Cause and Effect Analysis Complete
Apr 23
Improve/Control Presentation
Apr 27-28
Final Report/Presentation
May 5-6
Module 1 - Define Phase
89
Project Plan - Define
Activity
Status
Due
Date
Deliverables
Resource
s
Define Phase
1
Form Core Team
Complete
1/4
Org. Chat
2
Define Activities and Deliverables
Complete
1/6
Activities and
Deliverables Matrix
3
Define Responsibilities
Complete
1/6
Responsibility Matrix
4
Prepare Project Charter
Complete
1/10
Project Charter
Define High Level Process Flow and
Participants
Complete
1/10
SIPOC
5
Define Customer / Stakeholder
Complete
1/15
Stakeholder Analysis
Matrix, TPC Analysis,
Customer/Stakeholder
Analysis
7
Define Communication Plan
Complete
1/16
Communications Plan
8
Perform Initial VOC and Identify CTS
Complete
1/17
CTS Summary
9
Select Additional Team Members
Complete
1/18
Update Org. Chart
6
Module 1 - Define Phase
90
Project Plan – Define (cont.)
Activity
Status
Due
Date
Deliverables
Revise Responsibilities
Complete
1/19
Update
Responsibility
Matrix
Develop Method to Control Change
Complete
1/19
Items for Resolution
Form
12
Prepare Project Plan
Complete
1/20
Project Plan
Complete
2/2/05
Define Phase Report
13
Prepare Define Phase Report and
Presentation
10
11
Module 1 - Define Phase
Resources
91
Next Steps
• Measure Phase
–Process Maps
–Data Collection Plan
–Survey Construction
–Database Orientation
–Data Extraction Sessions
Module 1 - Define Phase
92