Lean Six Sigma Define Phase PDF

# Lean Six Sigma - Lean six sigma - measure 3.4 DPMO (defects per million opportunities) (99.9999967% conformance) - DMAIC - existing process - DMADV - new process ## Lean vs. Six Sigma | Lean | Six Sigma | Lean Six Sigma | |-----...

# Lean Six Sigma - Lean six sigma - measure 3.4 DPMO (defects per million opportunities) (99.9999967% conformance) - DMAIC - existing process - DMADV - new process ## Lean vs. Six Sigma | Lean | Six Sigma | Lean Six Sigma | |--------------------|---------------------------------------------|--------------------------------------| | Waste elimination | Variation reduction | Makes the methodology powerful | | Taichi Ohno | Bill Smith & Mikel Harry | | | Toyota | Motorola | | | 1940s | 1980s | | | | Statistical side of Lean Six Sigma | | ## Qualities of a Lean Six Sigma Leader - Head for figures - Eye for Details - Wide reach - Walks the talk - Shouldering responsibility - Emotional intelligence - Solid footing ## Pillars of Lean 1. Define Value 2. Map Value Stream 3. Create Flow 4. Establish Pull 5. Pursuit of Perfection ## Define Phase - Goal: To establish the project's importance, problem/opportunity, goal, scope and team. - Output Deliverables: - A clear business case, problem and goal statement - Selected critical to quality characteristic - High-level process map - Outputs: Project Charter - Steps: - **Create Project Charter** - **Create SIPOC Diagram** - **Understand VOC (Voice of the Customer)** ## Problem Solving vs. Improvement ### What is a Problem? - Centers on the fundamental notion of "gap" or "deviation" from standard (eg cost, quality, delivery) - **Gap = Problem** ### What is an Improvement? - Focuses on achieving a new standard or level of performance - **Gap = Opportunity** ## Why Close the Gap? - There are benefits in closing the gap! ## How to Choose the Right Problem? - Recurring or continuous - Verifiable - Can be analyzed and solved by team members - Negatively affecting the work life of team members ## Project Charter - It is a "contract" between the organization's leadership and the project team created at the outset of the project. - It serves as a communication vehicle to establish a common understanding of the project among all involved. ### Project Charter Elements - **Business Case:** Importance of doing the project. - **Problem Statement:** Description of the pain. - **Goal Statement:** SMART objectives. - **Process Scope:** Process boundaries, resources. - **Project Timeline:** Timetable of actions to achieve the goal. - **Consequential Metric:** Metric that will possibly be affected negatively. - **Team Members:** People who will work together to achieve the goal. ### Project Charter Sample - Yield Improvement #### Business Case To support the strategic initiative of ensuring product quality and reducing unit cost, Yield Improvement projects are being driven and supported by the Top Management. As identified using the Factory VSM creation, Assembly has the largest gap of 1.38% versus the factory target of 99.5% for yield management. #### Problem Statement Process Yield at Assembly is at 98.12% since WW41 to WW52 versus factory target of 99.50% which is a gap of 1.38%. #### Objective Statement To increase Process Yield at Assembly from 98.12% to 99.5% which is 1.38% improvement by the end of October 2017. #### Project Scope This project will focus on Assembly process and factors affecting Yield and covering all models. #### Project Timeline | Phase | Week | | -------- | ----- | | Define | W01-W02 | | Measure | W03-W06 | | Analyze | W07-W09 | | Improve | W10-W13 | | Control | W14-W16 | #### Primary Metric - Project Metric of Assy Yield #### Consequential Metric - Productivity #### Project Benefits - 71k$ #### Project Team - **Leader:** J. Concepcion - **Members:** - D. Vegiga (Process) - K. Andal (Ops) - M. Rosales (IE) - M. Aguirre (Cost) - B. Ulan (Finance) #### Approvers - **Champion:** G. Ponce - **Coach:** J. Palisoc - **MBB:** F. Veroya ## Problem & Goal Statements ### Tips In Writing the Problem Statement - Develop the problem statement in such a way that the problem is obvious. - Highlight the deviation from the standard or the "should" with the use of the adjectives or words such as: - High or increasing defect rate - Low or decreasing yield - Frequent machine breakdown - Many complaints - Delay in - **Don't:** - Imply the most likely cause of the problem. ("Due to", "Because of") - Use "lack of" in stating the problem. ("Lack of") - State the problem in terms that are too broad or too narrow to be measured. ("System", "Communication") - State the problem as a question. ("How to") ### Problem Statement Elements - What? - Where? - Current? - When? - How much? - How do you know? ### Tips In Writing the Goal Statement - Start with an action verb. - Focus on the numbers. - Include the completion date. - **Don't:** Include a solution. ("By implementing", "Through the application") ### Goal Statement Elements - Action verb: "To increase" - Specific & measurable: "Process Yield at Assembly from 98.12% to 99.5% which is 1.38% improvement" - Attainable: "by the end of October 2017" - Realistic & time bound ## SIPOC Diagram - It is a high-level process map that shows process boundaries. - A tool that allows a team to see their process in relation to all needed inputs, outputs and suppliers. - Identifies relationship between suppliers, inputs and the process. - **Elements** - **Supplier:** The source of inputs. - **Input:** The necessary materials or information for the process. - **Process:** The series of steps taken to create the output. - **Output:** The result of the process. - **Customer:** The recipient of the output. ### SIPOC Helps to Answer the following Questions - What is the **start and end points** of the work system? - What are the **essential steps** within the work system? - What are the **main inputs and outputs**? - Who are the **key customers** (Internal and External)? - Who are the **key suppliers** (Internal and External)? ### Guide in Answering the SIPOC Questions | Element | Question | Example | |-----------|---------------------------------------------------|------------| | Supplier | Who are the suppliers of the inputs? | Persons, machines, processes, etc. | | Input | What are the required inputs? | Material, data, workforce, knowledge, etc. | | Process | What is the process? | Process from start to end | | Output | What are the expected outputs? | Product, yield information, etc. | | Customer | Who are the customers of the outputs? | End user, department, customer, etc. | ### How to Create a SIPOC Diagram 1. Describe the **Process** from start to end. 2. Specify the quality **Output**. 3. Identify the **Customers** of the Output. 4. Identify the needed **Input**. 5. Identify who the **Supplier** is. ### SIPOC Diagram Examples #### SIPOC Diagram Example #1 - **SIPOC:** | Element | Description | |--------------|-------------------| | **Supplier** | Patrons | | **Input** | A lunch order | | **Process** | 1. Customer arrives or calls<br> | 2. Take order<br> | 3. Deliver order to the kitchen<br> | 4. Prepare, make and cook order. <br> | 5. Package order. <br> | 6. Deliver order (or pick up). | | **Output** | Lunch Order | | **Customer** | Lunch Patron | - **Customer Requirements** - Accurate: Delivered food matched to ordered food - On Time: Delivery in 16 minutes or less or 20 minutes or less for entrees - Soup: Delivered at 155-160 degrees. - Available: Regular menu items are 100% available. #### SIPOC Diagram Example #2 - **SIPOC:** | Element | Description | |--------------|-------------------| | **Supplier** | You, Cornershop | | **Input** | Kettle, Water, Coffee, Mug | | **Process** | Making Coffee<br> | 1. Boil water<br> | 2. Add coffee to mug<br> | 3. Add boiling water to mug <br> | 4. Serve | | **Output** | Mug of coffee | | **Customer** | Wife |