lean six sigma green belt training module 1 · dmaic is a typical lean six sigma project structure...

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Lean Six SigmaGreen Belt TrainingModule 1October 2017

www.pwc.com

2Lean Six Sigma • Green BeltPwC

Today‘s focus:

DefineD

Measure

Analyzuj

Improve

Control

M

A

I

C

Define the improvement opportunities

Identify the Key Performance Indicators (KPIs)

Identify specific problems

Identify potential solutions

Determine the control plan

Develop the project plan

Develop a data collection plan

Identify and validate the root causes

Select right improvement solution

Detect the abnormal variations

Develop the project team

Validate the measurement system

Identify y = f (x)

Test and validate optimal solutions

Evaluate results of the changes

Define the processes (high level)

Define the baseline process performance

Develop a change management approach

Document the process changes

Identify critical customers requirements (CCR’s).

Deploy and execute solutions

Close project, communicate the know-how

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August 2013Lean Six Sigma • Black Belt Training Week 2PwC

Opportunities for improvement

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4Lean Six Sigma • Green BeltPwCPwC

Lean and Six Sigma are two methodologies with one goal

Lean Six Sigma

Find out what customer values and remove everything else. Keep quality high, costs low and do it fast.

Remove waste Remove variability

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How would 99% right look like

20 000 lost packages in the US per hour 2 landing accidents daily on every major airport

Unsafe drinking water for almost 15 minutes each day

5000 wrong surgeries in the US per week


Some things need to be 99,99966% (6 sigma) right

7 lost packages in the US per hour 1 landing accident every 5 years on every major airport

Unsafe drinking water once in 7 months

1,7 wrong surgeries in the US per week

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3 to 6 Sigma cost of poor quality

Hint: blame your processes, not your people.

Expenses

Cost of Waste & rework

Profit

3 Sigma of poor quality 4 Sigma of poor quality

Expenses


Profit

5 Sigma of poor quality

Expenses


Profit

Six Sigma of poor quality

Expenses


Profit


DMAIC is a typical Lean Six Sigma project structure

DefineD

Measure

Analyze

Improve

M

A

I

Section 1 – “Define” – Summary

ControlC

What clients want? Improvement opportunity? Financial benefit? Product / service usefulness?

How to measure improvement & success? What is the current state?

What is the root cause of the problem? Which causes are crucial?

How to improve customer value? Improve or innovate?

Is the client satisfied? Sustain the improvement. Always evaluate and challenge!

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Define

d


The Business Model Canvas

Keyactivities

Keypartners

Keyresources

Coststructure

Customerrelations

Customersegments

Valuepropositions

Channels

Revenuestreams

Adopted: Strategyzer®

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Value Proposition Map

Gain Creatorsthings that you will design into your value proposition

Products or servicesthings that are within your realm of control

Pain Relieversthings that can be observedabout a customer segment


Customer profile

GainsDescribe customer outcomes

to achieve or expected benefits Customer

jobsDescribe what customers are

trying to achieve at work and in life

Jobs:Functional Emotional

SocialSupporting

PainsDescribe customer bad

outcomes, risks or obstacles

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Job – pains – gains perceived by a customer

Job importance Pain severity Gain relevance

+ Important

- Insignificant

Works at public service

Attractiveperson

Xxxxx

Active sports

Good mum

Xxx

Xxxxxxxxxx

+ Extreme

- Moderate

Joints

Xxx

Xxx

Small gap between teeth

Digestive problems

Does not sleep

Xxx

+ Essential

- Nice to have

Success in society

Saves money

Xxx

Can eat everything

Free traveling

Xxx

Xxx


Kano model

DefineDefine the improvement opportunities

Develop the project plan

Develop the project team


Identify critical customers requirements

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Bad performance(Need not fulfilled)

Excellent performance(Need well fulfilled)

Client satisfied

Clientnotsatisfied

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Basic parameters:Ordinary chairs in the waiting room (leather armchairs are useless)

Performance parameters:The dentist will calm the patient and create confidence in the result

Parameters "Beyond expectations":After treatment:the patient receives a suitable and design toothbrush

Indifferent parameters:The dentist will recommend a local restaurant

Problematic parameters:Voice over TV with a series in the waiting room

"Defeats":Inappropriate or „silly“ dentist´s jokes during the treatment

ModelofClient´sSatisfaction/Example„Atthedentist“


Team, management and roles (Belbin)

THINKING

THINKING

THINKING

ACTION

ACTION ACTION

PEOPLE

PEOPLE

PEOPLE

PROACTIVE PROACTIVE

PROACTIVEPROACTIVEShaper

Coordinator

Plant

Resource investigator

Monitor evaluator

Specialist

Implementer

Team worker

Completer finisher

REACTIVEREACTIVE

REACTIVE

REACTIVE

PROACT./ REACT.

2. Leadership and people development3. Implementation and co-operation

1. Ideas and opportunities4. Observing and finishing

DefineDefine theimprovementopportunities

Develop theproject plan

Develop theproject team


Identify criticalcustomersrequirements

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Key factors of team success






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Perfo

rman

ce

Time

Potential teamWork group

Forming Fake-team

Storming

Real team

Norming

From: Bruce W. Tuckman

Team development

Initiating Planning Executing Closing

Monitoring

Project development

Membership

Role Allocation

Trust building

Roles and norms

Self-confidence growthTeam culture

Performing

Highly effective team

Project and team






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Lean Six Sigma • Yellow Belt školeníPwC

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Planning a task

1. Define a task (What is expected?)

2. Divide up a task into parts (Which steps will lead to accomplishment?)

3. Analyse its parts (What is critical and what may wait?)

4. Generate more methods of its implementation (How to do it?)

5. Select the best method (It will be expensive or too slow?)

6. Decide how to perform a task (What and when will it do?)






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Lean Six Sigma • Yellow Belt školeníPwC

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Appendix

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Business Case ¨ Why should we do

this?

Problem 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 within

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?

Project Charter

Elements of a project charter

A. Business Case: Purpose

B. Problem Statement: Business impact

C. Goal Statement: Success criteria

D. Project Scope: Boundaries

E. Project Plan: Activities

F. Team Selection: Who and what

Project Charter

Objective of a project charterTo validate and/or identify an improvement project that is critical and aligned to the business value stream.






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Project Charter – How? (1/6)A. Business Case

The business case describes the benefit for undertaking a project, and should address the following questions:

• What is the benefit to the customer?

• What benefits will be derived from this project?

• Has the value of the benefits been quantified?

• Does this project align with other business initiatives?

• What impacts will this project have on other business units and employees?

• What is the focus for the project team?

• Where should the team’s work begin and end?

• What are the projected investments?

Business CaseDefine

Define theimprovementopportunities





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Project Charter – How? (2/6)B. Problem Statement

The problem statement describes current pain. The problem statement should address the following questions:

• What is the problem?

• When and where do the problems occur?

• How extensive is the problem?

• What is the impact “pain” on our customers?

• What is the impact “pain” on our business?

• What is the impact “pain” on our employees?

• Does it make strategic sense to address this problem?






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Project Charter – How? (3/6)C. Goal Statement

The goal statement defines the objective of the project, and is specific, measurable, attainable, relevant and time-bound. The goal statement addresses the dream state:

• What are the customers needs that must be met?

• What are the tangible results deliverables (e.g. reduce cost, cycle time, etc.)?

• What specific parameters will be measured?

• What is the improvement team seeking to accomplish?

• How will the improvement team’s success be measured?

• What is the timetable for delivery of results?






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Project Charter – How? (4/6)D. Project Scope

The project scope defines the boundaries of the business opportunity, and should address the following questions:

• 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, if anything, is outside the team’s boundaries?

Project boundariesDefine

Define theimprovementopportunities





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Project Charter – How? (5/6)E. Project Plan

Purpose

Plan the tollgates and activities of the Six Sigma project

Project Plan

• What (DMAIC, output defined by tollgates)

• Who

• When

Apply the KISS principle

• Actions, Action Owner, Time plan, status control






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Project Charter – How? (6/6)F. Team Selection

Select your team members and assign responsibilities. This should address the following questions:

• Who is the project sponsor? What are his/her responsibilities to the team?

• Who is accountable to whom and for what?

• Who is on the team?

• Who is the team leader? What are the team leader’s responsibilities?

• What type of team members are needed? At what stage will they be needed?

• How will the project teams coordinate their efforts?

• How often and how does the team report?






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Project Charter – Evaluation

Once you complete a draft of your project charter, you should evaluate the charter to ensure its effectiveness.

A methodology for evaluation is called “SMART.”

This acronym is a checklist to ensure that the charter is effective and thorough.

SMART

S pecific• Does it address a real business

problem?

M easurable• Are we able to measure the problem,

establish a baseline, and set targets for improvement?

A cceptable• Is the goal achievable? Is the project

completion date realistic?

R eal• Does it relate to a business objective?

T ime Bound• Have we set a date for completion?






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7+1 types of wasteManufacturing Services

Transport (M) Touches (S)

• Unnecessary movement• Extra handling• “Moving inventory”

• Unnecessary approvals• Verification loops• Inefficiencies between corporate and field

Inventory• High material stocks• Excessive space requirements• Clutter

• Poor resource leveling to meet demand• Minimal understanding of bottlenecks• Redundant activities

Motion• Incorrect layouts of factory, office, etc.• Lack of proximity of machines• Off-line resources

• “Chasing” approvals• “Searching” for information

Waiting • Watching machines work• Long set-up and lead times

• Waiting for approvals• Meetings and conference calls

Overprocessing• Poor machine maintenance• Unnecessary processing steps• High overall lead time

• Significant ad-hoc reporting• Pools of headcount performing reconciliation activities

Overproduction• Large batches of inventory• Making for the sake of it• Ignoring customer demand

• Poorly defined or communicated requirements• Excess resources lacking clear work activities

Defects• Long delays for troubleshooting• Costly rework• Dissatisfied customers

• Costly rework• Inaccurate reporting• Dissatisfied customers

(People) • Untapped Human Potential• Lack of motivation to make improvements

• Untapped Human Potential• Lack of motivation to make improvements


What is a Lean Six sigmaNormal distribution (Gaussian chart / Bell curve) is a most common statistical distributionProcess output has often a normal distributionCustomer sets lower limit and upper limit, what he acceptsStandard deviation is a measure of variationThe lover variation, the more standard deviations fits into customer limitThe best companies try to fit 6 standard deviations into the limit (therefore Six Sigma)That is 3,4 values outside the limits in 1 million tries!

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Lean Six Sigma Projects Examples

Production

Decrease scrap rateIncrease customer lead timeIncrease “On time in full” ordersDecrease breakdown rate Total productive maintenanceOptimization of internal logistics, decrease of transport and movementDecrease machine set up timesDecrease material consumptionReduce inventory

Services

Decrease mortgage approval timeIncrease accounting team productivityStreamlining internal approval processDecrease % of customers contacting customer serviceDecrease waiting time in call centers

Lean Six Sigma is equally usefull in both production and services. Most of the methods are the same.


Case for Change Storyline business case

• Defines power to change• Describes need for change• Defines relation to business issues

All together are the legitimisation for change!!

Key to success!!!Ambition

Pain?

Burning platform?

Need?






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Template: Case for Change – project x

1. What is the urgency or ambition behind the change?…………………………………….

2. What are the benefits of the change (as specific as possible)?…………………………………….

3. What happens if we do not change?…………………………………….






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Key Stakeholder Mapping

Stakeholders are….…individuals or groups of individuals who will either be affected by your activities or have

the ability to impact your activities

Mapping is done using five dimensions:- Time- Current level of support- Current level of impact- Power and influence- Desired level of support






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Conclusion


Contact

Jiří Benedikt

Trainer, ConsultantI help people work smarter

Lean Six Sigma | Design thinking | Excel

[email protected]

777 253 754

www.jiribenedikt.com

Jan Stejskal

Trainer, ConsultantCreating productive and cool teams

[email protected]

602 725 420

www.belbin.cz

lean six sigma green belt training module 1 · dmaic is a typical lean six sigma project structure...

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