Applied Projects - LSS - Define Phase PDF

Green Belt Certification Define Phase of the DMAIC Model Applied Projects Lean Six Sigma Amelia Abernathy  Intro video  Identify standards, metrics, objectives & customer problems Result – Problem statement & Project plan...

Green Belt Certification Define Phase of the DMAIC Model Applied Projects Lean Six Sigma Amelia Abernathy  Intro video  Identify standards, metrics, objectives & customer problems Result – Problem statement & Project plan Maintain, monitor & Control Variation – preventive fixes of root causes Define - Result – Control plan A Road Map Plan, apply, deploy Improvement tools – corrective fixes of failure modes For Guiding Result – reduced variation, measurable improved performance Improvement Map/measure the process Result – good quality data collect by listening to the Projects process Organize & Analyze the data & information collected Result – Identify Failure modes, sources of variation & root causes Define Phase: Key Concepts Activities Tools/Deliverables Identify customer problems & Draft the problem Project Charter statement Team Charter Identify performance standards (CTQ) SIPOC Diagram Identify improvement objectives (Goals) Voice of the customer Develop high level process maps Identify customer: define their needs Link Problem to the key business drivers  Overview of the Define Phase WHAT is the Define step? Identifies the product and/or process to be improved Defines the project’s purpose and scope; obtain background information about the process and its customers Ensures that resources are in place for the improvement project. WHY is the Define phase important? Sets the expectations of the improvement project Maintains the focus of Lean/Six Sigma strategy on the customer's requirements WHAT are the outputs of the Define step? A project charter that describes the purpose and goals of the project, identifies resources and establishes the team’s solution boundaries A well-defined problem/opportunity statement that details the impact of the problem, its resultant effect on the organization and a simple timeline for completion A high-level process map (SIPOC) that graphically displays the major process events Voice of the Customer data on customer needs & perceptions of your products / services.  What We Will Cover in the Define Phase PROJECT PROJECT STAKEHOLDE HIGH-LEVEL SIPOC VOICE OF THE CHARTER TEAMS RS PROCESS CUSTOMER FLOW (VOC)  Defining a Project Projects/opportunities require explicit definition before applying process excellence tools and techniques. Project definition clarifies the purpose, objective, goal(s), reasons for selection, boundaries and a logical time frame from initiation to completion. The problem with poorly defined projects: May not deliver the expected business results Lacking specifics, such projects often lose focus and credibility Without clear goals representing the needs and wants of the sponsor, the project may not receive management support Project Charter A project charter is an agreement between management and team members about what the team is expected to accomplish. It is the first step in the Lean Six Sigma methodology. The charter can make or break a successful project. It can make it by specifying necessary resources and boundaries that will in turn ensure success It can break it by reducing team focus, effectiveness and motivation The charter can be thought of as a contract between the project team and the executive team. Project Charter – AN Ongoing Process Few project charters are set at the beginning…most evolve  As the project goes on, you will learn and understand more about what is really going on in the process  At a minimum, the charter should be reviewed: After all the data has been collected and verified When each of the first three phases of DMAIC are completed: Define, Measure, Analyze Before interim project reviews with Key Stakeholders  Be open to revisiting the various elements of the project charter so that the project remains: Important Achievable Choosing a Project Often out of your hands!!! However, before beginning evaluate that a project:  is within the “control” of the team: the members of the team have responsibility and influence over the process  is an activity, process, or operation in which the team members regularly participate and work – from which we can collect data and information  has the support of process owners, sponsors and champions  has a supportable business case:  cost reductions, waste improvement, productivity improvement, cost avoidance, compliance and overall benefit  aligns with the Mission, Vision and Goals of Organization  has a time-frame that will fit into the allotted schedule  Project Charter A Project Charter is an agreement between management and team members about what the team is expected to accomplish. Date: Project Title: Project start Date: ProblemStatement TeamMembers  A brief Description of the problem or  SponsorChampion: process you will investigate and the  Process Owner: Who should be This one-page summary of your impacts caused by this problem  Project Leader: on your project project that quickly  Team Members: team? captures the essential elements Project Definition and Scope Milestones/ Projected Timeline: of the project  A description of the what you intend charter. the project to do: Define what results are due and when  Scope  First estimates of performance they are expected. gains or savings  Expectation and estimation of ROI © 2020 University of Oklahoma Lean Institute  Approvals: Process Owner (The person responsible for the day-to-day performance of the process) Date Title of Project Sign: ________________________________ Date: _________________ Project Start Date Sponsor/Champion (A person with decision-making authority in the organization who can: - make decisions - coach, mentor, and support project leaders - procure resources - help clear roadblocks, and remove barriers) Very important: Getting signatures Sign: ________________________________ Date: _________________ ensures support and “buy-in” over a verbal commitment. Supervisor (The person to whom the Project Leader directly reports) Sign: ________________________________ Date: _________________ Project Leader (The student, students, or continuous improvement practitioner leading the project) Sign: ________________________________ Date: _________________ Continuous Improvement Project Charter Considerations for Defining a Project Project Charter 1) Problem Statement  Identify the key customer concerns and Critical to Quality requirements 2) Project Definition  Clearly define the Objective of your project  Ensure it ties to the organization’s business drivers 3) Project Resources (Project team roster)  Including Owner, Champion, Content Experts and Process Experts 4) Milestones  May be performance and/or time related 5) Approvals  Process Owners, Champions, Supervisors, Team Leader and Members Considerations for Defining a Project Other Key Issues to Address 1) Project Value  What is the value of my project – refer to the Project Value notes for reference 2) Assumptions  Document your sources and concerns 3) Business Case [Return on Investment (ROI) where possible] Calculations  Estimate your savings (current and annualized) divided by your costs 4) Areas of Concern  Discussion of the Project Characteristics  Identify gaps and mitigation of the gaps 5) Next Steps  What actions need to be done? Additional Project Charter Template Problem A statement to define: What problem is being Statement addressed The magnitude and trend of the problem The baseline It should not: performance Include a cause Imply a solution It should: Be specific Quantify the problem State the effect / pain Define a defect Problem Statement Example: Good or Bad? A Problem Statement tells you: What is wrong? Example: Where does it happen? Problem Statement: We have seen a larger than normal scrap rate on line 25 in resent months. This is causing us to run overtime to make up the missed When does it happen? product. We need to address this. To what extent does it happen? What is the impact? Problem Statement Example: Good or Bad? A Problem Statement tells you: What is wrong? Example: Where does it happen? Problem Statement: Our company’s procedure for submitting responses to RFPs has many delays because we have to gather information from multiple When does it happen? departments. We could reduce late responses with the installation of a new computer-based collaboration system. To what extent does it happen? What is the impact? Problem Statement Example: Good or Bad? A Problem Statement tells you: What is wrong? Example: Where does it happen? Problem Statement: We have missed the deadline for submission date on RFPs 23% of the time in the last six months, resulting in loss of revenue. When does it happen? To what extent does it happen? What is the impact? Project Goal/Mission Statement Mission or Goal Statement What is the goal of the project? How much improvement are we targeting? The goal of the project should be SMART It should be related to the problem you are trying to solve Basic Framework: Improve “A” to “B” level by “timeframe” resulting in “C” Project Goal: Good or Bad? The project management group needs to reduce the number of late responses to RFPs they cause by not filling out the paperwork correctly the first time.  Reduce the percentage of late Project submissions from XX% to less than 1% in the next five months resulting Goal: Good in $XX in new revenue. or Bad? Good!! - An effective mission statement also indicates the numerical goal of the project - What will the results of a successful project be - As with a problem statement, you may not have all the numbers/data at the beginning. You can still work on the project and fill in the numbers later  Project Scope A specific description of the scope of the project that clearly defines the boundaries (beginning and ending points) Clarifies what is within the team’s area of influence & what is outside that area The scope should: Be at an actionable level Indicate any constraints for the team Specify products, locations, etc. to focus on  Project Scope The boundaries – what is in scope and what is out of scope Can include product families, geographical areas, departments, etc. Helps to avoid “Scope Creep” It is NOT a timeline Think of this as your contract. Your project will do X, Y, and Z. It will NOT do A, B, or C. Example: This project will map and evaluate the delivery process for letters and flats in all zip codes in the Oklahoma City local area, starting with the receipt of mail at the Oklahoma City dock and ending with delivery into customers’ mail receptacle. Limited to _______________ Start = Point of ___________ Stop = Point of ___________ In-Class Activity Complete “Define: Problem Statement and Project Goal” Passcode: 123515  Stakeholder Analysis When working on a project it is important that you appropriately engage stakeholders. The kind of stakeholder will dictate how you engage with them. What is a Stakeholder? An individual, group, or organization who can impact, or be affected by the outcome of a project. Stakeholders have an interest in the success of the project and can have a positive or negative influence on it. Stakeholders include: Those who can influence the project Those who are affected by the project Those who are involved in the project Types of Stakeholders Managers whose budgets, results, schedules, or resources will be affected by the project Process owners Project team Employees who work in the process under study Upstream and downstream departments Customers / Clients Suppliers Finance Etc. Stakeholder analysis Stakeholder analysis is the process of clearly identifying, assessing, and prioritizing the people who will be affected by your business or project. This process typically involves: 1. Identifying all key stakeholders 2. Documenting stakeholder needs 3. Assessing & analyzing stakeholder interest/influence on the project 4. Managing stakeholder expectations 5. Taking actions 6. Reviewing status & repeat Identify Core Processes and Key Customers Think of a “Core Process” as one that is critical for day-to- Always start with the day operations. Consider customer and their problems, functions such as HR, look at the problem from accounting, scheduling, their perspective. maintenance, resource allocation, medical, etc. as core process.  Voice of the Customer (VOC) Process used to capture the requirements and feedback from the customer to provide them with high quality service/product quality VOC is a term used to describe the stated AND unstated needs or requirements of the customer Can be captured in a variety of ways: Direct discussion or interviews Surveys Focus groups Customer specifications Observation This data is utilized to identify the quality attributes needed for a supplied component or material to incorporate in the process or product **Essential to identify during the “Define” phase  VOC – Why It Is Important? To achieve improvements through LSS and other continuous improvement initiatives, practitioners must first identify what matters most to the customers impacted by the process. Customers may have diverse perspectives and priorities Remember all of our different customers: External customers – those who receive the product, service or output of the process and pay the organization for the product/service Internal customer – the next step in the process or the overall business itself Organization – the stakeholders or leaders of the organization who want the process to operate efficiently Employees – those who work on the process Defining Customer Requirements Once we have talked to our customers, we must translate these generic needs into specific items called critical-to-quality requirements (CTQs) To ensure that the CTQs are adequately specific, a key question to ask is: “Can a formula or precise operational definition be developed to describe this need, and can it be measured as a project metric?” Voice of Critical to Project Customer Quality Metrics (Y) (VOC) (CTQ) CTQ Example Customer Feedback: “I want a good hotel room” CTQ to Metric Example Product/ Service Metric Characteristic s What does clean Room is clean mean? Need Room has many # of functioning Good Hotel Room TV channels channels per day # of rooms with Room has High high speed Speed Internet internet versus # of rooms in hotel The RIGHT Voice of the Customer Kano Model All Work is Done in a Process Work is done by people using energy, materials, facilities, and procedures Most critical processes are highly cross- functional processes Most processes are undefined and unmanaged Many key processes fail often, are highly inefficient, and are complex SIPOC Clearly define the start and end points of the process 30,000 foot view of the process A process may (and most likely will) have multiple suppliers, inputs, outputs and customers  Suppliers: Significant internal/external suppliers to the process. This would be anyone who provides raw material, goods or services as inputs to the process. A SIPOC diagram Inputs: Significant inputs to the process. This would include resources such as raw materials, forms, identifies all of the information, staff, etc. Process: One block representing the entire process (empty for now). relevant elements Outputs: Significant outputs to internal/external customers. This would be any deliverable from the process. Measures for of a process by quality, speed, and costs are listed along with the output. creating Examples of outputs would be reports, products, documents, etc. Customers: Significant internal/external customers to the process. a detailed list of all This would include anyone who receives output or a deliverable from the process. It is important to note that the customer must of the process’s get the output directly from the business unit and does not necessarily have to be a user of the output. If the output is inputs and outputs. received from a third party, they are not customers. Examples of customers could be managers, CEOs, boards of directors or other departments. Requirements (optional columns): What does the process expect from each input? What does the customer expect from each output? “How To” SIPOC 1. Meet with your process owner and team 2. Document a simple process definition 3. ASK QUESTIONS, for example: a) What transformation does this process perform? b) Where does the process start and stop? c) What are the critical inputs and outputs? d) Who are the key suppliers? e) Who are the key customers? f) What are the major steps? g) Where are the feedback loops? 4. Summarize on the SIPOC template so that it is available for everyone High Level SIPOC Example High Level Process (Activity) Map A diagram of a process displaying the sequential steps of the process. It is a key tool to understand the “real” process What is ACTUALLY happening, not what is supposed to happen Helps us document the process in order that we can understand and identify the causes of variation Visually shows complexity of a process (This is the “P” of the SIPOC)  Process Step or Operation This symbol represents Activity – points in the process where the entity is changed as the result of work being done Noun/Verb Also called task, step, or operation Often, an activity can be decomposed into a sub-process which contains lower level activities. Label using a verb or Noun  Decisions Decision symbols are used to identify locations in the process that a decision creates a branch in the process flow Label the decision as a question All decisions symbols should have two or more exit lines. Each line should be labeled such that it answers the decision question – Yes or not Now Does the When Yes Later class need a does the break? class need a break? NO Never In-Class Activity Complete “Define: SIPOC and Process Map” Passcode: 765569