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7/28/2019 Yellow Six Sigma

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Define PhaseSix Sigma Fundamentals


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Open Source Six Sigma, LLCOSSS LSS Yellow Belt v10.0 - Define Phase 2

Six Sigma Fundamentals

Voice of the Customer

Cost of Poor Quality

Process Maps

Process Metrics

Six Sigma Fundamentals

Selecting Projects

Elements of Waste

Understanding Six Sigma

Wrap Up & Action Items


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What is a Process?

Why have a process focus?

So we can understand how and why work gets done

To characterize customer & supplier relationships

To manage for maximum customer satisfaction while utilizing

minimum resources

To see the process from start to finish as it is current lybeingperformed

Blame the process, no tthe people

process (proses) n. A repeti t ive and systematicseries ofsteps o r act iv i t ieswhere inputsare

modified to achieve a value-added output


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Examples of Processes

Injection molding

Decanting solutions

Filling vial/bottles Crushing ore

Refining oil

Turning screws

Building custom homes

Paving roads Changing a tire

Recruiting staff

Processing invoices

Conducting research Opening accounts

Reconciling accounts

Filling out a timesheet

Distributing mail

Backing up files Issuing purchase orders

We go through processes everyday. Below are som e examples of

those processes. Can you th ink of other processes wi th in yourdaily envi ronment?


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Process Maps

The purpose of Process Maps is to:

Identify the complexity of the process

Communicate the focus of problem solving

Process Maps are l iv ingdocuments and must be changed as the

process is changed

They represent what is currently happening, not what you think is

happening. They should be created by the people who are closest to the process

Step AStart FinishStep B Step C Step D

Process Map


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Process Map Symbols

Standard symbols for Process Mapping (available in Microsoft

Office, Visio, iGrafx , SigmaFlow and other products):

A RECTANGLEindicates an

activity. Statements within

the rectangle should begin

with a verb

ADIAMONDsignifies a decision

point. Only two paths emerge from

a decision point: No and Yes

An ELLIPSEshows the start

and end of the process

A PARALLELAGRAMshows

that there are data

An ARROWshows the

connection and directionof flow

1

ACIRCLE WITH A LETTER OR

NUMBER INSIDEsymbolizesthe continuation of aflowchart to another page


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High Level Process Map

One of th e del iverables from the Define Phase is a high level

Process Map, wh ich at a min im um mu st include:

Start and stop points

All process steps

All decision points

Directional flow

Value categories as defined below

Value Added: Physically transforms the thing going through the process

Must be done right the first time

Meaningful from the customers perspective (is the customer willing topay for it?)

Value Enabling:

Satisfies requirements of non-paying external stakeholders(government regulations)

Non-Value Added

Everything else


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Process Map Example

A Process Map for a Call Center -

START

LOGON TO PC &

APPLICATIONS

SCHEDULED

PHONE TIME?

LOGON

TO PHONE

CALL or

WALK-IN?

PHONE DATA

CAPTURE BEGINS

DETERMINE WHO

IS INQUIRING

ACCESS CASE TOOL

CASE TOOL

RECORD?

Y

N

A

Z

CALL

WALK-IN

DETERMINE NATURE

OF CALL & CONFIRM

UNDERSTANDING

Y

NC

B

D PHONETIME

Y

N

Z

B

C

REVIEW CASETOOL HISTORY &

TAKE NOTES

PUT ON HOLD,

REFER TO

REFERENCES

IMMEDIATE

RESPONSE

AVAILABLE?

Y

N

TRANSFER

APPROPRIATE?

Y

N

TRANSFER

CALL

ANSWER?Y

N

QUERY INTERNAL

HRSC SME(S)

ANSWER?Y

N

OFF HOLD AND

ARRANGE CALL

BACK PHONE DATA

ENDS

PROVIDE

RESPONSE

PHONE&

NOTE

DATA ENDS

D

ADD TO

RESEARCH

LIST

Z

LOGOFF PHONE, CHECKMAIL,E-MAIL,VOICE MAIL

SCHEDULED

PHONE TIME?

N

YA

E

EXAMINE NEXT NOTE

OR RESEARCH ITEM

ACCESS CASE TOOL

ENTER APPROPRIATE

SSAN (#,9s,0s)

IF EMP DATA NOT

POPULATED, ENTER

OLD

CASE

Y

N

UPDATE ENTRIES

INCL OPEN DATE/TIME

CREATE A CASE

INCL CASE TYPE

DATE/TIME, &

NEEDED BY

AUTO

ROUTE Y ROUTE

CASE

CLOSED

N

Y

N

CLOSE CASE

W/

DATE/TIMEE

TAKE ACTION

or

DO RESEARCH

F

GO TO

F or E

DEPENDING ON

CASEF

ENEXT


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Cross Functional Process Map

When multiple departments or functional groups are involved in a complex

process it is often useful to use cross functional Process Maps.

Draw in either vertical or horizontal Swim Lanes and label the functional groupsand draw the Process Map

General

Accounting

Bank

Financial

Accounting

Vendor

Department

StartRequest

transfer

Attach ACH

form toInvoice

Produce an

Invoice

Fill out ACH

enrollment

form

Receive

payment End

Vendor

info in

FRS?

Input info into

web interface

Match against

bank batch

and daily cash

batch

Accepts transactions,

transfer money and

provide batch total

Review and

Process

transfer in

FRS

3.0

Journey Entry

21.0

Bank

Reconciliation

Maintain database

to balance ACH

transfers

ACH Automated

Clearing House.

No

Yes

Sending Fund Transfers


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Process Map Exercise

Exercise objective: Using your favorite Process

Mapping tool create a Process Map of your project

or functional area.

1. Create a high level Process Map, use enough

detail to make it useful.

It is helpful to use rectangular post-its for processsteps and square ones turned to a diamond for

decision points.

2. Color code the value added (green) and non-value

added (red) steps.

3. Be prepared to discuss this with your mentor.


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Do you know your Customer?

Knowing your customer is more than just a handshake. It is

necessary to clearly understand their needs. In Six Sigma we call

this understanding the CTQ s or critical to customercharacteristics.

Voice Of the Customer Critical to Customer

Characteristics


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Voice of the Customer

Voice of the Customer or VOC seems obvious; after all, we allknow what the customer wants. Or do we??

The customers perspective has to be foremost in the mind of the SixSigma Belt throughout the project cycle.

1. Features Does the process provide what the customers expect and need?

How do you know?

2. Integrity Is the relationship with the customer centered on trust?

How do you know?

3. Delivery Does the process meet the customers time frame?

How do you know?

4. Expense Does the customer perceive value for cost?

How do you know?


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What is a Customer?

There are di fferent types of custom ers w hich dictates how we

interact w ith them in the pro cess. In ord er to ident i fy cu stomer and

supp l ier requirements w e mus t f i rs t define who the custom ers are:

External

Direct: those who receive the output of your services, they

generally are the source of your revenue Indirect: those who do not receive or pay for the output of your

services but have a vested interest in what you do (government

agencies)

Internal

- those within your organization

who receive the output of your

work


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Value Chain

The relationship from one process to the next in an organization creates a

Value Chain of suppliers and receivers of process outputs.

Each process has a contribution and accountability to the next to satisfy the

external customer.

External customers needs and requirements are best met when all process

owners work cooperatively in the Value Chain.

Careful each movehas manyimpacts!


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What is a CTQ?

Critical to Quality (CTQ s) are measures that we use to capture

VOC properly. (also referred to in some literature as CTCs Critical

to Customer) CTQ s can be vague and difficult to define.

The customer may identify a requirement that is difficult to measure

directly so it will be necessary to break down what is meant by the

customer into identifiable and measurable terms

Product:

Performance

Features

Conformance

Timeliness

Reliability

Serviceability

Durability

Aesthetics

Reputation

Completeness

Service:

Competence

Reliability

Accuracy

Timeliness

Responsiveness

Access Courtesy

Communication

Credibility

Security

Understanding


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Developing CTQs

Identify Customers

Listing Segmentation

Prioritization

Validate CTQ s

Translate VOC to CTQs Prioritize the CTQs

Set Specified Requirements

Confirm CTQs with customer

Capture VOC Review existing performance

Determine gaps in what you need to know

Select tools that provide data on gaps

Collect data on the gaps

Step 1

Step 2

Step 3


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Cost of Poor Quality (COPQ)

COPQ stands for Cost of Poor Quality

As a Six Sigma Belt, one of your tasks will be to estimate COPQ foryour process

Through your process exploration and project definition work you

will develop a refined estimate of the COPQ in your project

This project COPQ represents the financial opportunity of your

teams improvement effort (VOB)

Calculating COPQ is iterative and will change as you learn moreabout the process No, not that kindof cop queue!


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The Essence of COPQ

COPQ helps us understand the financial impact of problems created

by defects.

COPQ is a symptom, not a defect

Projects fix defects with the intent of improving symptoms.

The concepts of traditional Quality Cost are the foundation forCOPQ.

External, Internal, Prevention, Appraisal

A significant portion of COPQ from any defect comes from effects

that are difficult to quantify and must be estimated.


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COPQ - Categories

External COPQ

Internal COPQ

Warranty

Customer Complaint Related

Travel Customer Charge Back Costs

Etc

Prevention

Error Proofing Devices Supplier Certification

Design for Six Sigma

Etc

Detection

Supplier Audits

Sorting Incoming Parts

Repaired Material Etc

Quality ControlDepartment

Inspection

Quarantined Inventory

Etc


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COPQ - Iceberg

Rework

Inspect ionWarranty

Rejects

Lost s ales

Late delivery

Engineer ing change orders

Long c yc le t imes

Expedit ing costs

Excess inventory

Hidden Cos ts

Visib le Costs

Lost Custom er Loyalty

More Set-ups

Time value of money

Working Capital al locat ions

Excess ive Material

Orders/Planning

Recode

(less obviou s)

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