RLM & Associates LLC
Your Lean Six Sigma & Project Management Trainers
Lean Six Sigma DMAIC Workshop
Green Belt – Organizational
Deployment
3/14/2016
© 2010 RLM & Associates LLC
1
Objectives
 Explain and apply the DMAIC process to
specific issues and/or problems
 Use basic 6 Sigma analysis tools to make
decisions based on data and information
 Communicate and apply data driven
decision-making process techniques in
your daily job function
3/14/2016
© 2010 RLM & Associates LLC
2
LSS Company Stock Performance Research
50 Publicly Traded Companies with Organizational-Wide 6
 Deployments
Source: iSixSigma
3/14/2016
© 2010 RLM & Associates LLC
3
10 Year Stock Price Increase
190%
Lean Six Sigma Organizations
Outperform the Major Stock
Indices by More than 300%
61 %
50%
42%
Dow Jones
Industrial
Average
3/14/2016
S&P 500
NASDAQ
$
$
$
$
$
$
$
$
$
$
LSS Companies
January, 2000 – January, 2010
© 2010 RLM & Associates LLC
4
10 Year Stock Price Increase* LSS Companies
Lean Six Sigma is NOT a cure-all
It is NOT a Replacement for Poor Strategy or
Poor Execution
16% (8 of 50) Companies Saw a Decrease in
Stock Value
…but 84% Saw an Increase!
0
3/14/2016
2.5X
5.0X
7.5X
10.0X
© 2010 RLM & Associates LLC
12.5X
15.0X
17.5X
5
Kraft Foods 10 Year Stock Performance
3/14/2016
© 2010 RLM & Associates LLC
6
Team Work
Lean and Six Sigma are not
something extra to add to
your daily roles and
responsibilities!
Lean and Six Sigma ARE
your daily responsibility.
3/14/2016
© 2010 RLM & Associates LLC
7
Six Sigma – the Goal
Sigma Level
Defects Per
Million Opportunities
2
3
4
5
6
308,770
66,810
6,210
233
3.4
Most companies operate internally at 3 Sigma and
externally at 4 Sigma
3/14/2016
© 2010 RLM & Associates LLC
8
6 Sigma vs Cost of Poor Quality
30%
2σ
25%
3σ
20%
4σ
Cost of
15%
Poor
Quality
5σ
10%
6σ
5%
0%
68%
93%
99.4%
99.99%
99.9997%
Percent Defect Free
*From Allied Signal
3/14/2016
© 2010 RLM & Associates LLC
9
Your Role as a Green Belt
 Green Belts are NOT full-time process
improvement positions
 Participate as a team member in Black
Belt Projects
 Lead green belt 6σ projects & activities
 Apply 6σ tools & techniques to daily
problem solving activities
 Operate under the supervision of Black
Belts or Master Black Belts
3/14/2016
© 2010 RLM & Associates LLC
10
Integration of Lean and Six Sigma
Topic
3/14/2016
Lean
© 2010 RLM & Associates LLC
Six Sigma
11
Integration of Lean and Six Sigma
Topic
Improvement
3/14/2016
Lean
Reduce Process
Wastes
© 2010 RLM & Associates LLC
Six Sigma
Reduce Variation
12
Integration of Lean and Six Sigma
Topic
Lean
Six Sigma
Improvement
Reduce Process
Wastes
Reduce Variation
Justification
Speed or Velocity
6σ (3.4 DPMO)
3/14/2016
© 2010 RLM & Associates LLC
13
Integration of Lean and Six Sigma
Topic
Lean
Six Sigma
Improvement
Reduce Process
Wastes
Reduce Variation
Justification
Speed or Velocity
6σ (3.4 DPMO)
Main Savings
Operating Costs
Cost of Poor Quality
3/14/2016
© 2010 RLM & Associates LLC
14
Integration of Lean and Six Sigma
Topic
Lean
Six Sigma
Improvement
Reduce Process
Wastes
Reduce Variation
Justification
Speed or Velocity
6σ (3.4 DPMO)
Main Savings
Operating Costs
Cost of Poor Quality
Learning Curve
Short
Long
3/14/2016
© 2010 RLM & Associates LLC
15
Integration of Lean and Six Sigma
Topic
Lean
Six Sigma
Improvement
Reduce Process
Wastes
Reduce Variation
Justification
Speed or Velocity
6σ (3.4 DPMO)
Main Savings
Operating Costs
Cost of Poor Quality
Learning Curve
Short
Long
Project Selection
Value Stream
Mapping
DMAIC or DMEDI
3/14/2016
© 2010 RLM & Associates LLC
16
Integration of Lean and Six Sigma
Topic
Lean
Six Sigma
Improvement
Reduce Process
Wastes
Reduce Variation
Justification
Speed or Velocity
6σ (3.4 DPMO)
Main Savings
Operating Costs
Cost of Poor Quality
Learning Curve
Short
Long
Project Selection
Value Stream
Mapping
DMAIC or DMEDI
Project Length
Days to Weeks
2 – 6 months
3/14/2016
© 2010 RLM & Associates LLC
17
Integration of Lean and Six Sigma
Topic
Lean
Six Sigma
Improvement
Reduce Process
Wastes
Reduce Variation
Justification
Speed or Velocity
6σ (3.4 DPMO)
Main Savings
Operating Costs
Cost of Poor Quality
Learning Curve
Short
Long
Project Selection
Value Stream
Mapping
DMAIC or DMEDI
Project Length
Days to Weeks
2 – 6 months
Drivers
Demand
Data
3/14/2016
© 2010 RLM & Associates LLC
18
Integration of Lean and Six Sigma
Topic
Lean
Six Sigma
Improvement
Reduce Process
Wastes
Reduce Variation
Justification
Speed or Velocity
6σ (3.4 DPMO)
Main Savings
Operating Costs
Cost of Poor Quality
Learning Curve
Short
Long
Project Selection
Value Stream
Mapping
DMAIC or DMEDI
Project Length
Days to Weeks
2 – 6 months
Drivers
Demand
Data
Complexity
Moderate
High
3/14/2016
© 2010 RLM & Associates LLC
19
Integration of Lean and Six Sigma
Do major business problems fall into the
following categories?
 There appears to be a lot of waste
 There is a need to reduce inventories
and redundancies
 There is a need to improve work flow
 There is a need to speed up processes
 There are human mistakes
3/14/2016
© 2010 RLM & Associates LLC
20
Integration of Lean and Six Sigma
If so, then lean tools should be
used to:





3/14/2016
Eliminate wastes
Increase speed or velocity
Reduce inventories
Simplify processes and improve flows
Mistake proof processes
© 2010 RLM & Associates LLC
21
Integration of Lean and Six Sigma
However, if issues and/or problems
exhibit the following characteristics:
 There are quality problems
 There is excessive product or process
variations
 There are complex problems or issues
 There are significant problems
identifying root causes
 There are many technical
considerations
3/14/2016
© 2010 RLM & Associates LLC
22
Integration of Lean and Six Sigma
Then six sigma tools should be used
to:





3/14/2016
Minimize variation
Apply scientific problem solving
Use robust project chartering
Focus on quality issues
Employ technical methodologies
© 2010 RLM & Associates LLC
23
Lean and Six Sigma Tools
Define
3/14/2016
Measure
Analyze
© 2010 RLM & Associates LLC
Improve
Control
24
Lean and Six Sigma Tools
Define
Measure
Analyze
Improve
Control
Value Stream
Mapping
Charter –
Problem
Statements
Voice of the
Customer
Communicatio
ns Planning
Critical to
Quality Issues
Business
Results
Benchmarking
3/14/2016
© 2010 RLM & Associates LLC
25
Lean and Six Sigma Tools
Define
Measure
Analyze
Value Stream
Mapping
Prioritization
Matrices
Charter –
Problem
Statements
Measurement
System Analysis
Voice of the
Customer
Capability
Studies
Communicatio
ns Planning
Videotaping
Critical to
Quality Issues
Time Studies
Business
Results
SIPOC
Benchmarking
Collecting Data
3/14/2016
© 2010 RLM & Associates LLC
Improve
Control
26
Lean and Six Sigma Tools
Define
Measure
Analyze
Value Stream
Mapping
Prioritization
Matrices
Charter –
Problem
Statements
Measurement
5 - Whys
System Analysis
Voice of the
Customer
Capability
Studies
Cause –
Effect
Diagrams
Communicatio
ns Planning
Videotaping
Root Cause
Analysis
Critical to
Quality Issues
Time Studies
ANOVA
Business
Results
SIPOC
Multi-Variate
Analysis
Benchmarking
Collecting Data
Hypothesis
Testing
3/14/2016
Improve
Control
Regression
Analysis
© 2010 RLM & Associates LLC
27
Lean and Six Sigma Tools
Define
Measure
Analyze
Value Stream
Mapping
Prioritization
Matrices
Charter –
Problem
Statements
Measurement
5 - Whys
System Analysis
Kaizen Events
Voice of the
Customer
Capability
Studies
Cause –
Effect
Diagrams
Theory of
Constraints
Communicatio
ns Planning
Videotaping
Root Cause
Analysis
Pull Systems
Critical to
Quality Issues
Time Studies
ANOVA
SMED
Business
Results
SIPOC
Multi-Variate
Analysis
5S
Benchmarking
Collecting Data
Hypothesis
Testing
Work Flow
Improvement
3/14/2016
Regression
Analysis
Improve
Control
Design of
Experiments
© 2010 RLM & Associates LLC
28
Lean and Six Sigma Tools
Define
Measure
Value Stream
Mapping
Prioritization
Matrices
Charter –
Problem
Statements
Analyze
Control
Design of
Experiments
Statistical
Process
Control
Measurement
5 - Whys
System Analysis
Kaizen Events
Visual Controls
Voice of the
Customer
Capability
Studies
Cause –
Effect
Diagrams
Theory of
Constraints
Control Plans
Communicatio
ns Planning
Videotaping
Root Cause
Analysis
Pull Systems
Total
Preventative
Maintenance
Critical to
Quality Issues
Time Studies
ANOVA
SMED
Standardized
Work
Business
Results
SIPOC
Multi-Variate
Analysis
5S
Procedures
and Work
Instructions
Benchmarking
Collecting Data
3/14/2016
Regression
Analysis
Improve
Hypothesis
Work Flow
Testing
© 2010
RLM & Associates LLCImprovement
Training
Requirements
29
Customer Defects
6 Sigma Focuses on the Reduction of Variation that
Generates Defects for Customers
Suppliers
Inputs
Business
Processes
Variation in the
Process Output
Causes Defects that
are seen by the
Customer
3/14/2016
Process
Outputs
Defects
© 2010 RLM & Associates LLC
The
Market
Critical
Customer
Requirements
30
Defect Reduction Due to Process
Variation is Attained by Reducing or
Removing the Root Causes of Variation
with the intention of …
 Reducing the process output variation
and/or…
 Modifying the process output mean levels
of performance
3/14/2016
© 2010 RLM & Associates LLC
31
Moving the Mean
Mean
Critical
Customer
Requirement
Defects:
Unacceptable
to customer
Product Output
3/14/2016
© 2010 RLM & Associates LLC
32
Reducing Process Output Variation
Mean
Critical
Customer
Requirement
Defects:
Unacceptable
to customer
Product Output
3/14/2016
© 2010 RLM & Associates LLC
33
Quiz
1. Lean and Six Sigma share all of the
following issues EXCEPT:
A. They both focus on continuous improvement
B. They both require top management commitment
C. They both focus on customer satisfaction
D. They both require long learning curves
3/14/2016
© 2010 RLM & Associates LLC
34
Quiz
1. Lean and Six Sigma share all of the
following issues EXCEPT:
A. They both focus on continuous improvement
B. They both require top management commitment
C. They both focus on customer satisfaction
D. They both require long learning curves
3/14/2016
© 2010 RLM & Associates LLC
35
Quiz
2. Increasing performance in a lean six
sigma organization from 3 sigma to 4
sigma would reduce defects per million
by a factor of:
A. 2
B. 8
C. 10
D. 16
3/14/2016
© 2010 RLM & Associates LLC
36
Quiz
2. Increasing performance in a lean six
sigma organization from 3 sigma to 4
sigma would reduce defects per million
by a factor of:
A. 2
B. 8
C. 10
D. 16
3/14/2016
© 2010 RLM & Associates LLC
37
Quiz
3. What is the best senior management
reason for not providing black belt
assistance to an improvement team:
A. Black belt resources may be tight
B. It forces the team to develop its own skills
C. It may not be required
D. It requires the team to ask for help
3/14/2016
© 2010 RLM & Associates LLC
38
Quiz
3. What is the best senior management
reason for not providing black belt
assistance to an improvement team:
A. Black belt resources may be tight
B. It forces the team to develop its own skills
C. It may not be required
D. It requires the team to ask for help
3/14/2016
© 2010 RLM & Associates LLC
39
Quiz
4. From a senior management perspective
what is the principal motivation factor for
embracing lean six sigma?
A. Bottom line results
B. Market share growth
C. Defect reductions
D. Customer focus
3/14/2016
© 2010 RLM & Associates LLC
40
Quiz
4. From a senior management perspective
what is the principal motivation factor for
embracing lean six sigma?
A. Bottom line results
B. Market share growth
C. Defect reductions
D. Customer focus
3/14/2016
© 2010 RLM & Associates LLC
41
Organizational-Wide
Deployment of Lean Six Sigma
3/14/2016
© 2010 RLM & Associates LLC
42
Organizational-wide Deployment
Business Systems – comprised of a variety of
processes. Business systems must work
together to achieve customer satisfaction.
Key Management activities that support and
guide business systems include:
 Strategic planning
 Customer & market focus
 Information & analysis
 Human resources
 Process management
3/14/2016
© 2010 RLM & Associates LLC
43
Organizational-Wide Deployment
Inputs
Process 1
Data
Options & Ideas
Orders
Specifications
Money
Customer Requirements
Suppliers
Process 2
Process 3
Process 4
Outputs
Products
Services
Remedies
Designs
Root Causes
Training
Others
Feedback
Customer
3/14/2016
© 2010 RLM & Associates LLC
44
Six Sigma Roles
Six Sigma defines a taxonomy of
knowledge, skills and ability levels for
all members of the organization.
Each Six Sigma level has well
defined roles and
responsibilities for team
communications.
Executive
Deployment
Leader
Champions
Master Black Belts
Black Belts
Effect: Team members
are focused and
capable of meeting
project needs.
Green Belts
Yellow Belts
All Employees
3/14/2016
© 2010 RLM & Associates LLC
45
Large Scale Change
 Organizational change agents advise
to allow 3 to 5 years for changes to
take effect.
 Training alone can take one to two
years
3/14/2016
© 2010 RLM & Associates LLC
46
Resistance to Change
Strategies for Dealing with Change
 Educate and communicate the change
 Enlist employee participation
 Provide training and counseling
 Have negotiated arrangements for change
 Use manipulation to obtain support
 Use threats ONLY as a last resort
3/14/2016
© 2010 RLM & Associates LLC
47
Linking Project to Organizational Goals
Implementing Six Sigma begins with
managements commitment to make a change
 Is the organizations strategy clear and
communicated to all employees
 Can the organization meet its financial and growth
goals and objectives
 Does the organization respond effectively to new
environmental conditions
3/14/2016
© 2010 RLM & Associates LLC
48
Linking Project to Organizational Goals
Organizations need to evaluate current
levels of performance
 How are the current overall business
results?
 How effectively do we meet customer
requirements?
 How effectively are we operating?
3/14/2016
© 2010 RLM & Associates LLC
49
Linking Project to Organizational Goals
Organizations need to evaluate their
capacity for systems change and
improvement
 How effective are we in managing systems
change?
 How well are cross functional processes
managed?
 Are our current efforts in conflict with Six
Sigma
3/14/2016
© 2010 RLM & Associates LLC
50
Linking Project to Organizational Goals
Performance
Do’s
Don’t Do
Low
Medium
High
3/14/2016
© 2010 RLM & Associates LLC
51
Linking Project to Organizational Goals
Performance
Low
Do’s
Don’t Do
 Concentrate on basics
 Use problem solving teams
 Apply cost management
 Engage in customer innovation
Medium
High
3/14/2016
© 2010 RLM & Associates LLC
52
Linking Project to Organizational Goals
Performance
Low
Do’s
 Concentrate on basics
 Use problem solving teams
 Apply cost management
 Engage in customer innovation
Don’t Do
 Empowerment
 Benchmarking
 Strategic Planning
Medium
High
3/14/2016
© 2010 RLM & Associates LLC
53
Linking Project to Organizational Goals
Performance
Do’s
Low
 Concentrate on basics
 Use problem solving teams
 Apply cost management
 Engage in customer innovation
Medium
 Set goals and monitor them
 Use process simplification
 Use department improvement
teams
 Get middle management
involved
Don’t Do
 Empowerment
 Benchmarking
 Strategic Planning
High
3/14/2016
© 2010 RLM & Associates LLC
54
Linking Project to Organizational Goals
Performance
Do’s
Low
 Concentrate on basics
 Use problem solving teams
 Apply cost management
 Engage in customer innovation
Medium
 Set goals and monitor them
 Use process simplification
 Use department improvement
teams
 Get middle management
involved
High
 Benchmark other firms
 Empower employees
 Communicate strategic plans
 Continuously improve
3/14/2016
© 2010 RLM & Associates LLC
Don’t Do
 Empowerment
 Benchmarking
 Strategic Planning
55
Linking Project to Organizational Goals
Six Sigma Deployment Methodology
 Focus on project cost savings
 Focus on customer satisfaction deliverables
 Focus on processes
 Focus on problems
 Focus on targeted locations
 Focus on design
 Focus on supplier processes
3/14/2016
© 2010 RLM & Associates LLC
56
Quiz #2
1. The role of a six sigma green belt can be
defined as:
A. A full time process improvement position
B. An individual that has mastered the basic
skills, but has less experience than black belts
C. A person that has demonstrated proficiency
with statistical tools by using them to
generate positive financial benefits
D. A part time financial support person to
document project return on investment
3/14/2016
© 2010 RLM & Associates LLC
57
Quiz #2
1. The role of a six sigma green belt can be
defined as:
A. A full time process improvement position
B. An individual that has mastered the basic
skills, but has less experience than black
belts
C. A person that has demonstrated proficiency
with statistical tools by using them to
generate positive financial benefits
D. A part time financial support person to
document project return on investment
3/14/2016
© 2010 RLM & Associates LLC
58
Quiz #2
2. It will take my organization how long to
become a six sigma organization:
A.
B.
C.
D.
3/14/2016
Six Months
12 Months
24 Months
36 to 60 Months
© 2010 RLM & Associates LLC
59
Quiz #2
2. It will take my organization how long to
become a six sigma organization:
A.
B.
C.
D.
3/14/2016
Six Months
12 Months
24 Months
36 to 60 Months
© 2010 RLM & Associates LLC
60
Quiz #2
3. Which of the following is not a focus of
six sigma projects:
A.
B.
C.
D.
3/14/2016
Improving supplier processes
Customer satisfaction deliverables
Cost savings
Employee labor relations
© 2010 RLM & Associates LLC
61
Quiz #2
3. Which of the following is not a focus of
six sigma projects:
A.
B.
C.
D.
3/14/2016
Improving supplier processes
Customer satisfaction deliverables
Cost savings
Employee labor relations
© 2010 RLM & Associates LLC
62
Quiz #2
4. Implementing Six Sigma begins with
managements commitment to make a
change. Which of the following is NOT a
management responsibility.
A. Clearly communicating the organizations
strategy to all employees
B. Identifying SMART financial and growth goals
and objectives
C. Responding to changing environmental
conditions
D. Process specific knowledge
3/14/2016
© 2010 RLM & Associates LLC
63
Quiz #2
4. Implementing Six Sigma begins with
managements commitment to make a
change. Which of the following is NOT a
management responsibility.
A. Clearly communicating the organizations
strategy to all employees
B. Identifying SMART financial and growth goals
and objectives
C. Responding to changing environmental
conditions
D. Process specific knowledge
3/14/2016
© 2010 RLM & Associates LLC
64
Generating Six Sigma
Project Ideas
3/14/2016
© 2010 RLM & Associates LLC
65
What is Your Improvement Story
What Are We Here To Do?

As an organization

As a business unit

As a team

As an individual team member
3/14/2016
© 2010 RLM & Associates LLC
66
Improvement Tree Diagram
3/14/2016
© 2010 RLM & Associates LLC
67
DMAIC Improvement Process
Define Opportunities
Focuses on “real
problems” directly related
to financial performance
Measure Performance
Realizes results in 2-4 months
Analyze Opportunity
Utilizes tools and techniques
including rigorous statistical methods
when needed
Improve Performance
Sustain improvement efforts
Control Performance
Communicate improvements
throughout the organization
3/14/2016
© 2010 RLM & Associates LLC
68
DMAIC Improvement Process
Define
Opportunities
Measure
Performance
Analyze
Opportunity
Improve
Performance
Objective
Main Activities
Potential Tools
To identify and/or
validate the
improvement
opportunity.
Develop the
business
processes. Define
critical customer
requirements.
Prepare to be an
effective team
member
• Identify Business
Opportunity
• Develop Project
Charter
• Identify and Map
Processes
•Identify Quick
Wins
• Translate VOC
into Customer
Requirements
• Charts
3/14/2016
• Project Charter
• Action Plan
• Critical Customer
Requirements
© 2010 RLM & Associates LLC
Control
Performance
Key
Deliverables
• Project Charter
• Action Plan
• Process Maps
• Quick Win
Opportunities
• Critical Customer
Requirements
• Team Ready to
Perform
69
DMAIC Improvement Process
Define
Opportunities
Measure
Performance
Analyze
Opportunity
Improve
Performance
Objective
Main Activities
Potential Tools
Identify the critical
measures necessary to
evaluate success.
Develop methodology
to effectively collect
data to measure
process performance.
Understand the
elements of the 6
Sigma calculation and
establish baseline
sigma for process
being analyzed.
• Identify Input, and
Output Indicators
• Develop
Operational
Definition and
Measurement Plan
• Plot/Analyze Data
• Determine if
Special Cause
Exist
• Determine Sigma
Performance
• Collect
Performance Data
• Flow Charts/Process
Maps
3/14/2016
Control
Performance
Key
Deliverables
• Inputs, Process,
• Checksheets
• Run/Control Charts
• Histograms/Bar Charts
© 2010 RLM & Associates LLC
•
•
•
•
and Output
Indicators
Operational
Definitions
Data Collection
Formats & Plans
Baseline
Performance
Positive Team
Culture
70
DMAIC Improvement Process
Define
Opportunities
Measure
Performance
Analyze
Opportunity
Improve
Performance
Objective
Main Activities
Potential Tools
To stratify and analyze
the opportunity to
identify a specific
problem and define an
easily understood
problem statement. To
identify and validate
the root causes that
assure elimination of
“real” root causes and
thus the problem the
team is focused on.
• Stratify Process
• Stratify Data &
Identify Problem
• Develop problem
Statement
• Identify Root
Causes
• Design Root Cause
Verification
Analysis
• Validate Root
Cause
• Flow Charts/Process
Maps
3/14/2016
Control
Performance
Key
Deliverables
• Data Analysis
• Quantified Root
Causes
• Process Maps
• Hypothesis Testing
• Validates Root
Causes
• ANOVA
• Regression Modeling
© 2010 RLM & Associates LLC
• Problem
Statement
71
DMAIC Improvement Process
Define
Opportunities
Measure
Performance
Analyze
Opportunity
Improve
Performance
Objective
Main Activities
Potential Tools
To identify, evaluate
and select the right
improvement
solutions. To develop a
change management
approach to assist the
organization in
adopting to the
changes introduced
through solution
implementation.
• Generate Solution
• Solutions
3/14/2016
•
•
•
•
•
Ideas
Determine Solution
Impacts & Benefits
Evaluate and
Select Solutions
Develop Process
Maps
Develop and
Present Storyboard
Communicate to All
Stakeholders
• Cost/Benefits
• Gantt Charts
• Design of Experiments
• Analysis/Screening
• Response Surface
© 2010 RLM & Associates LLC
Control
Performance
Key
Deliverables
• Solutions
• Process Maps and
Documentation
• Implementation
Milestones
• Improvement
Impacts and
Benefits
• Storyboard
• Change Maps
72
DMAIC Improvement Process
Define
Opportunities
Measure
Performance
Analyze
Opportunity
Improve
Performance
Objective
Main Activities
Potential Tools
To understand the
importance of planning
and executing against
the plan. Determine
approach to be taken
to assure achievement
of the targeted results.
Understand how to
share lessons learned,
identify replication and
standardization
opportunities.
• Implement Pilot
Plan and Solution
• Verify Reduction in
Root Cause Sigma
Improvement
• Identify Additional
Solutions
to Achieve Goal
• Identify and
Develop
Replication/
Standardization
Opportunities
• Error Modes and
Effects Analysis
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• Process Control
Systems
• Project Workplan
• Gap Analysis
• Run/Control Charts
© 2010 RLM & Associates LLC
Control
Performance
Key
Deliverables
• Process Control
Systems
• Standards and
Procedures
• Training
• Team Evaluation
• Change Plans
• Potential Problem
Analysis
• Pilot and Solution
Results
• Success Stories
73
DMEDI Creation Process
DMEDI Overview
 Define
 Measure
 Explore
 Develop
 Implement
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DMEDI Creation Process
Define Opportunities
Focuses on development of new
products, services, processes, and
plants that precisely meet
customer current and future needs
Measure VOC
Realizes results in 6-18 months
depending on type of project
Explore Design Concepts Utilizes multiple tools and
techniques including rigorous
statistical methods when needed
Develop Detailed Design Sustains improvement over the
long-term and disseminates
throughout the organization
Implement Final Design Acts as an agent of change
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DMEDI Creation Process
Define
Measure
Explore
Develop
Objective
Main Activities
Potential Tools
Understand the
Purpose and the
Outputs of Define.
Develop a Project
Charter. Develop a
Multi-Generational
Plan. Develop a
Project Plan to
Manage the
Project
• Form Stakeholder
• Multigenerational Plan
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•
•
•
•
•
•
Review Team
Develop Business
Case
Develop
Opportunity and
Goal Statement
Define Scope
Develop Charter
Identify Team
Develop
Communication
Plan
• Project Charter
• Communications Plan
• In – and – Out of Scope
Tools
• Gantt Chart
© 2010 RLM & Associates LLC
Implement
Key
Deliverables
• Draft Project
•
•
•
•
•
•
Charter
Write Problem/
Goal Statement
Project Scope
Definition
Project Plan
Team Resources
Design Controls
Communications
Management Plan
76
DMEDI Creation Process
Define
Measure
Explore
Develop
Objective
Main Activities
Potential Tools
Understand the
outputs of
Measure.
Understand how to
specify CCRs using
QFD. Begin QFD
work. Understand
how to use VOC.
Synthesize
information and
create output from
Measure.
• Identify
• Voice of the Customer
•
• Affinity Diagram
•
•
•
•
•
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Customer Needs
Translate needs
into
Requirements
Benchmark
performance
Organize QFD
Prioritize CCRs
Establish CCR
upper & lower
limits
Establish Target
Sigma
• Tree Diagram
• QFD
• Benchmarking
• Critical Customer
Requirements Matrix
© 2010 RLM & Associates LLC
Implement
Key
Deliverables
• Voice of
Customer
• Competitive
Benchmarking
• Product/Service
Requirements
• Critical-toCustomer
Requirements
Definition
77
DMEDI Creation Process
Define
Measure
Explore
Develop
Objective
Main Activities
Potential Tools
Use QFD to
deploy CCRs.
Develop
alternative
concepts. Evaluate
designs. Develop
high-level designs.
Assess and select
best design.
Assess risk of
high-level design
• Translate CCRs
• Function Structure Tree
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•
•
•
•
into Functions
Identify
Alternatives
Select best fit
Evaluate CCRs
vs. Functions
Perform
Functional
Capability
Assessment
Evaluate
Requirements
• Benchmarking
• QFD
• Capability Assessments
• Creativity Tools
• Balance Scorecards
© 2010 RLM & Associates LLC
Implement
Key
Deliverables
• Product/Service
Design Concepts
•“Best-Fit”
Concept
Selection
• High-Level
Production
Design
• Design Elements
Definition
• Performance
Capability
Assessment
78
DMEDI Creation Process
Define
Measure
Explore
Develop
Objective
Main Activities
Potential Tools
Understand
outputs of
Develop. Begin
work on planning
activities. Develop
a detailed design.
Refine capability
predictions.
Develop process
control methods.
Develop pre and
pilot test plans for
product/service
• Translate High
Level Design into
Detailed Design
Elements
• Perform
Capability
Assessments
• Revise based on
Capability
Assessment
• Perform FMEA
• Develop Process
Control Plans
• Structure Tree
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• FMEA
• QFD
• Process Control Plans
• Detailed Designs
• Design of Experiments
• Balanced Scorecards
© 2010 RLM & Associates LLC
Implement
Key
Deliverables
• Detailed Design
• Refined
Functional
Capability &
Performance
Assessments
• Process Control
Plan
• Critical Customer
Requirement
(CCR) Score Card
79
DMEDI Creation Process
Define
Measure
Explore
Develop
Objective
Main Activities
Potential Tools
Understand the
purpose and the
outputs of
Implement.
Develop and
execute the pilot
and analyze the
results . Develop
full-scale
implementation
plans and
transition to
process owners.
• Execute Pilot Plan
• Confirm Design
• Develop Detailed
Implementation
Plan
• Develop
Communication
Plan
• Develop Owner
Transition Plan
• Complete Project
& Lessons
Learned
• Gantt Chart
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Implement
• Process Control Plans
• Communications Plan
• Pilot Validation Assessment
• Balanced Scorecard
© 2010 RLM & Associates LLC
Key
Deliverables
• Validation Testing
• Gap Analysis
• Scale-Up Decision
• Full-Scale
Implementation
Plan
• Owner Transition
Plan
• Build & Control
Documentation
80
Quiz #3
1. The DMAIC process focuses on:
A. Developing ideas for new product lines
B. Improving an existing process
C. Demonstrated proficiency with statistical tools
by using them to generate positive financial
benefits
D. Understanding effectiveness, efficiency and
adaptability
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Quiz #3
1. The DMAIC process focuses on:
A. Developing ideas for new product lines
B. Improving an existing process
C. Demonstrated proficiency with statistical tools
by using them to generate positive financial
benefits
D. Understanding effectiveness, efficiency and
adaptability
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Quiz #3
2. In the DMAIC model the objective of the
DEFINE OPPORTUNITIES process step is to:
A.
B.
C.
D.
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Validate business opportunities
Develop team guidelines
Identify business improvement opportunities
Identify quick wins
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Quiz #3
2. In the DMAIC model the objective of the
DEFINE OPPORTUNITIES process step is
to:
A. Validate business opportunities
B. Develop team guidelines
C. Identify business improvement
opportunities
D. Identify quick wins
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Quiz #3
3. In the DMAIC model the objective of the
MEASURE PERFORMANCE process step is to:
A.
B.
C.
D.
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Validate business opportunities
Develop team guidelines
Identify quick wins
Identify critical measures necessary to evaluate
your ability to meet customer requirements
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Quiz #3
3. In the DMAIC model the objective of the
MEASURE PERFORMANCE process step is
to:
A.
B.
C.
D.
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Validate business opportunities
Develop team guidelines
Identify quick wins
Identify critical measures necessary to
evaluate your ability to meet customer
requirements
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Quiz #3
4. In the DMAIC model the objective of the
ANALYZE OPPORTUNITY process step is to:
A. Identify the specific problem and write a
problem statement
B. Prevent group think when analyzing the
problem
C. Identify quick wins
D. Calculate the process efficiency
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Quiz #3
4. In the DMAIC model the objective of the
ANALYZE OPPORTUNITY process step is
to:
A. Identify the specific problem and write a
problem statement
B. Prevent group think when analyzing the
problem
C. Identify quick wins
D. Calculate the process efficiency
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A Six Sigma
Improvement Scenario
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Six Sigma Pizza Inc.
“Look at these
numbers. Our
revenue is
down again.
“Business is
not good. We
have to fix
this right
now.”
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Six Sigma Pizza Inc.
 8 locations in the Champaign area
 Dine-In, Carry-Out, Delivery options
 Perceptions are that customer satisfaction levels are declining
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Six Sigma Pizza Inc.
 Six Sigma Pizza has come to
the realization that changes must
be made within his organization
in order to meet the requirements
of his customers and grow his
business.
 Further erosion of their
customer base will cast serious
doubt on Six Sigma Pizza’s ability
to stay afloat.
 Six Sigma Pizza has recently
adopted the 6-Sigma way into his
operation and looks for this to
help turn things around.
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Six Sigma Pizza Inc.
With performance at 2 Sigma:
– 69.146% of products/services meet customer
requirements with 308,538 defects per million
opportunities
With performance at 4 Sigma:
– 99.379% of products/services meet customer
requirements … but there are still 6,210 defects
per million opportunities
With performance at 6 Sigma:
– 99.99966% - just 3.4 failures per million
opportunities (e.g., products/services, or
transactions)
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Six Sigma Pizza Inc.
Define Process Flow
Problem
Statement
Y = f(x)
Process
Mapping
CCR’s
Project
Scope
Project
Charter
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Six Sigma Pizza Inc.
 Define the problem using a quantifiable
numerical data
 Who are the customers impacted by the
problem
 Define CTQ‘s (Critical to Customer
Requirements)
 Scope the project to an actionable level
 Document the Define phase activities in
the project charter
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Six Sigma Pizza Inc.
Problem Statement
Purpose
The problem statement describes the “why”
of undertaking the improvement initiative.
The problem statement should address the
following questions:
 What is wrong or not working?
 When and where do the problems occur?
 How extensive is the problem? Baseline!
 What is it costing us?
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Steps for Defining a Project
1. Identify the problem cost and impact.
+
2. Write a Problem Statement
Be sure the statement includes:
What
Where
When
Baseline
Cost
3. Write an Objective Statement
Be sure the statement includes:
A METRIC
BASELINE performance level
The GOAL
A TIME FRAME to achieve some BENEFIT
The linkage to a specific CORPORATE GOAL or OBJECTIVE.
4. Obtain sponsor approvals and launch the project
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Six Sigma Pizza Inc.
Poor Problem Statement Example
Example
 Customers are complaining about their
pizza delivery times.
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Six Sigma Pizza Inc.
Good Problem Statement Example
Example
 Since August 1, 2009, the average time to
deliver pizza within a fifteen-mile radius is 39
minutes - a low of 24 minutes and a high of 49
minutes - this causes us to miss our delivery
goal of less than 35 minutes 39% of the time.
The result is customer complaints, delivery of
cold pizzas and loss of business. This costs us
$47,500 per year in scrapped/free pizzas,
$9,750 in drivers’ expenses and an annual
revenue loss of $300,000.
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Six Sigma Pizza Inc.
Business Case
 What impacts will this project have on
other departments, workgroups, and
employees?
 What benefits will be derived from this
project?
 Has the value of the benefits been
quantified?
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Six Sigma Pizza Inc.
Business Case Development
The business case describes the benefit
for undertaking a project. The business
case addresses the following questions:
 Does this project align with other business
initiatives?
 What is the focus for the project team?
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Six Sigma Pizza Inc.
Objective Statement
Purpose
The goal statement defines the objective of the
project, and is specific, measurable, attainable,
relevant and time-bound. The goal statement
addresses:
What is the improvement team seeking to
accomplish?
How will the improvement team‘s success
be measured?
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Six Sigma Pizza Inc.
Objective Statement
 What specific parameters will be measured?
 What are the tangible results deliverables
(e.g., reduce cost, cycle time, etc.)?
 What are the intangible deliverables/
results?
 What is the timetable for delivery of results?
 Define Y = f(x)
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Six Sigma Pizza Inc.
Objective Statement
Y = f(x)
 “Y” is a function of “x”
 What is the outcome?
Y
 What are the contributing factors?
X (X1, X2, X3, etc)
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Six Sigma Pizza Inc.
Poor Objective Statement
Example
 Improve pizza delivery times.
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Six Sigma Pizza Inc.
Good Objective Statement
Example
 Reduce the number of pizzas delivered
in over 35 minutes from 39% to less
than 5% by August 1, 2010. This will
support our Customer Satisfaction goal
and achieve a hard savings of $85,000.
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Six Sigma Pizza Inc.
Purpose of the Project Scope
 The project scope defines the boundaries of the
business opportunity.
Project Scope
 What are the boundaries, the starting and
ending steps of a process, of the initiative?
 What parts of the business are included?
 What parts of the business are not included?
 What is outside the team‘s boundaries?
 Where should the team‘s work begin and end?
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Six Sigma Pizza Inc.
Project Plan
Identifies high-level project milestones
and timelines
– Define by 9/1/2010
– Measure by 10/1/2010
– Analyze by 11/1/2010
– Improve by 12/1/2010
– Control by 1/1/2011
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Six Sigma Pizza Inc.
Roles and Responsibilities
Who are your team members and what are
their responsibilities? (list individually)
Name
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Role
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Activity
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Six Sigma Pizza Inc.
SMART Criteria
A methodology
for evaluation
is called
“SMART.”
This acronym is a
checklist to
ensure that the
charter is
effective and
thorough.
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Specific
 Does it address a real business
problem?
Measurable
 Are we able to measure the
problem, establish a baseline, and
set targets for improvement?
Attainable
 Is the goal achievable? Is the
project completion date realistic?
Relevant
 Does it relate to a business
objective?
Time Bound
 Have we set a date for completion?
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Six Sigma Pizza Inc.
Project Charter Elements
Business Case - Why should we do this?
Opportunity Statement - What “pain” are we
experiencing? What is wrong?
Goal Statement - What are our improvement
objectives and targets?
Project Scope - What authority do we have? What
processes are we addressing? What is not in scope?
Project Plan - How are we going to get this done? When are we going to complete the work?
Team Selection - Who are the team members? What
responsibilities will
they have?
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Six Sigma Pizza Inc.
Six Sigma Project Charter
Project Definition
Business Case – Why do this project?
Opportunity Statement – What problem
are we trying to solve? What is your pain?
Goal Statement – must be measurable
Project Scope – What is in scope and out
of scope?
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What is a Process Map?
A graphical representation of a process flow
identifying the steps of the process, the X’s
and Y’s of the process and opportunities for
improvement
Process maps need to be modified to fit the
particular needs of any specific process
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The Process Map has Many Uses
 Provides a step-by-step picture of the “as-is”
situation for discussion and/or
communication.
 Defines and highlights areas for improvement
in a process. These can either be elimination
of non-value added steps or addition of
needed steps depending on the desired
outcome of the process.
 Documents hidden “factory”, shows where
rework occurs.
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Throughput Yield vs. First pass Yield
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Process Map Benefits
 Provides visual representation of the process
 Allows flexibility in levels of detail
 Demands verification and objectivity
 Hands-on exposure
 Identifies rework loops and redundancies
 Provides insight into bottlenecks, cycle time, and
inventories
 Helps identify when and where to collect data
 Identifies where different work teams use different
processes
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Components of a Process
 Supplier: Whomever provides inputs to the
process
 Input: Materials, resources, and data
required to execute the process
 Process: The activities and resources applied
to the inputs to convert to outputs
 Output: The tangible products or services
that result from process
 Customer: Whomever receives the outputs
of the process –internally or externally
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Process Mapping
Process Maps Should Describe:
Major activities/tasks
Sub-processes
Process Boundaries (top level vs. detail)
Process Inputs X‘s
Process outputs Y‘s
Process step outputs Y‘s
Should be reviewed frequently and updated
Y = f(X1,X2,X3,X4…….. Xk)
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Process Mapping Iterations
 It is difficult to know what level of detail is
needed at the beginning
 It is recommended to start at a fairly high
level with SIPOC and process mapping and
allow some basic data collection to guide you
to areas of the process for more detailed
mapping
 Two process mapping and analysis techniques
are presented in this section: top-down
charting and functional deployment process
maps.
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Process Mapping Helpful Hints
 Always Process Map with a team. One person
never has all process knowledge.
 Interrogate the process by watching in many
different conditions. You must watch the process
as it happens to see the detail you need.
 Don‘t let space be an issue. Consider using postits, as the process steps and post on a wall to get
your initial ideas across.
 Maintain your Process Maps with dates and
update them as necessary. Use them as a
reference.
 Usually at least three versions… What we think it
is, What it actually is, and What it should be to
meet CTQ‘s!
 Look for the “hidden factory”
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30,000 Foot View
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Quiz #4
1. The first step in the DEFINE
OPPORTUNITIES phase of the DMAIC
model is to:
A.
B.
C.
D.
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Write a problem statement
Validate the problem
Define critical customer requirements
Train the project team
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Quiz #4
1. The first step in the DEFINE
OPPORTUNITIES phase of the DMAIC
model is to:
A.
B.
C.
D.
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Write a problem statement
Validate the problem
Define critical customer requirements
Train the project team
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Quiz #4
2. A well written problem statement
includes which of the following:
A.
B.
C.
D.
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What, where, when, baseline, and cost
What, where when, goal, objective
What, where, when, goal, benefit
What where, baseline, cost, benefit
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Quiz #4
2. A well written problem statement
includes which of the following:
A.
B.
C.
D.
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What, where, when, baseline, and cost
What, where when, goal, objective
What, where, when, goal, benefit
What where, baseline, cost, benefit
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Quiz #4
3. A well written objective statement includes
which of the following:
A. Metric to improve, the baseline, where it is
occurring, and the cost
B. Identify what to improve, when to improve by,
and the new goal or objective
C. Improve some goal from its current level of
performance to some new goal, by some time
frame, to achieve a benefit
D. Improve some metric from some baseline level to
some goal, by some time frame, to achieve some
benefit and improve upon some corporate goal or
objective.
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Quiz #4
3. A well written objective statement includes
which of the following:
A. Metric to improve, the baseline, where it is
occurring, and the cost
B. Identify what to improve, when to improve by,
and the new goal or objective
C. Improve some goal from its current level of
performance to some new goal, by some time
frame, to achieve a benefit
D. Improve some metric from some baseline
level to some goal, by some time frame, to
achieve some benefit and improve upon
some corporate goal or objective.
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Quiz #4
4. Which of the following is NOT a key
element of a project charter:
A. Business Case or Purpose
B. Opportunity Statement or Business
Impact
C. Goal Statement: Success Criteria
D. Project Scope: Boundaries
E. Best Practices and Lessons Learned
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Quiz #4
4. Which of the following is NOT a key
element of a project charter:
A. Business Case or Purpose
B. Opportunity Statement or Business
Impact
C. Goal Statement: Success Criteria
D. Project Scope: Boundaries
E. Best Practices and Lessons Learned
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