Lean Six Sigma Green Belt Training Material PDF May 2024

Lean Six Sigma Green Belt training programme Lean Six Sigma © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification:...

Lean Six Sigma Green Belt training programme Lean Six Sigma © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 2  Lean Six Sigma Green Belt Training Flowchart Module-1 Overview of Lean Six Sigma Stakeholders in LSS & Digital Transformation organisation Evolution, Origin & Growth of Apex Council​ Six Sigma Champion or Sponsor​ Contribution of Quality Gurus Process owner​ Digital Transformation & Significance of LSS in Digital Master Black Belt​ transformation. Black Belt​ LSS success story and benefits Green Belt​ Overview of DMAIC Framework Team Members​ Demystifying meaning of Six Sigma © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 3  Lean Six Sigma Green Belt Training Flowchart Module-2 Voice of Customer(VOC) Project Charter Process Mapping Understanding Customer Business Case SIPOC Gather VOC Problem Statement Sub-process mapping Affinity Diagram Goal Statement (SMART) Sub-process examples Kano Model Project Scope/Milestone Process Mapping Guidelines VOC to CTQ Roles and Responsibilities SIPOC (Group Exercise) Group exercise on the Sample Project Charter Simulation on Case study identifying CTQ Group exercise for Project Charter © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 4  Lean Six Sigma Green Belt Training Flowchart Module-3 Understanding Introduction to Measurement Data Collection & Baseline Data Visualisation Data Minitab System Analysis Sampling Performance (Overview) Types of Data Introduction to Gage R & R Data Collection Six Sigma Plan Power BI Measures of Minitab Attribute Agreement Calculation Introduction Central Tendency Analysis Operational Demonstration of Process Capability Definition Extract Data Measures of graphical tools and Demonstration of [Cp, Cpk] Dispersion Measurement Sampling Overview Data Modelling MSA on Minitab with Defective/ Defects System Analysis example Sampling Methods [PPM, DPMO] Data Visualization on Minitab Determining Six Sigma Dashboard in Sample Size Power BI Interpretation Data Distribution Simulation on Case Histogram and Box study. Plot © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 5  Lean Six Sigma Green Belt Training Flowchart Module-4 Process Door Data Door Approach Statistical Based Statistical Based Artificial Intelligence Approach Decision Making - Cause Analysis Decision Making - Introduction of AI. Process Analysis Hypothesis Testing Brainstorming –Cause Correlation and Introduction of ML Lean (Definition & Introduction to Regression and Effect Diagram History) Hypothesis Segregation of Causes Scatter Plot Principles of Lean Test of Means Pareto Diagram Introduction to Thinking (1 sample t-test/z-test, 2 sample t-test, paired t-test, ANOVA) correlation and simple Value Stream Mapping 5-Why Analysis linear regression Test of Proportions TIMHWOOD (1 proportion test, 2 proportion Demonstration on test, Chi- Square test) Minitab Demonstration on Minitab © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 6  Lean Six Sigma Green Belt Training Flowchart Module-5 Idea Generation Digital Solution Selection Solution with Lean Change, Risk Proofing Brainstorming Improvements Payoff Matrix 5S & Implementation Channeling, Analogy, IOT Change Management Screening against Kanban Anti- solution and Digital Twin must be SMED Force Field Analysis Brain writing Robotic Process Criteria Based Matrix Spaghetti chart FMEA with example Automation Nominal Group KAIZEN Implementation Plan Technique Poka Yoke © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 7  Lean Six Sigma Green Belt Training Flowchart Module-6 Control SPC Process Management Project Closure Why Control? Variable Control charts System What to Control? Attribute Control charts Documentation and standardization Monitoring Response plan © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 8 Module-1 Overview of Lean Six Sigma & Digital Transformation  Lean Six Sigma Green Belt Training Flowchart Module-1 Overview of Lean Six Sigma Stakeholders in LSS & Digital Transformation organisation Evolution, Origin & Growth of Apex Council​ Six Sigma Champion or Sponsor​ Contribution of Quality Gurus Process owner​ Digital Transformation & Significance of LSS in Digital Master Black Belt​ transformation. Black Belt​ LSS success story and benefits Green Belt​ Overview of DMAIC Framework Team Members​ Demystifying meaning of Six Sigma © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 10 Module-1 Learning Objectives By the end of this module participants will be able to learn: ✓ To be able to describe the history and benefits of different methodologies of Lean and Six Sigma ✓ Recognize the significance of integrating Lean Six Sigma principles into digital transformation journey of a business ✓ Recognize the importance of Lean Six Sigma in Digital Transformation to deliver business benefits ✓ To define the DMAIC Framework and its phases ✓ To know different Stakeholder of Lean Six Sigma Organization © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 11 Overview of Lean Six Sigma & Digital Transformation Evolution of Six Sigma What does Quality Mean? ❖ Detecting and correcting mistakes in the product such that it meets compliance standards. OR ❖ Preventing defects in the first place through manufacturing controls and product design such that it meets performance standards. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 13 Evolution of Six Sigma Late 1970s - Motorola started experimenting with problem The real problem at Motorola is that our quality stinks solving through statistical analysis. Motorola started Six Sigma approach to achieve it’s one of the top ten corporate goal of improving the quality by ten ……1979, Art Sundry times within five years in 1981. The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola. 1986 - Motorola officially launched it’s Six Sigma program as follows: A product found defective and corrected during Improve quality 10 times by 1989. manufacturing had high probability of failing during early use Improve quality 100 times by 1991. by customer Achieve six sigma (3.4 DPMO) performance by 1992. Motorola won the first Malcolm Baldridge National ……1985, Bill Smith Quality Award in 1988. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 14 Origin of Six Sigma Motorola gained a return of USD 800 million in two years Beginning of a new era at Motorola.. Improve the quality. Lower production cost. Lower production time. Focus on how the product was designed and made. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 15 Growth of Six Sigma – General Electric (GE) Jack Welch launched Six Sigma at GE in Jan,1996. 1998/99 - Green Belt exam certification became the criteria for management promotions at GE. 2002/03 - Green Belt certification became the criteria for promotion to management roles at GE. Scope of six sigma initiative has changed from ‘manufacturing’ to the entire business – service, product design and innovation. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 16 Contribution of Quality Gurus © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 17 Contribution of Quality Gurus Dr.Walter Shewhart (1891-1967) ❑ Known for framing the problems of failures in terms of “assignable causes” and “chance cause” variation. ❑ Known for the introduction of the SPC – control charts as a tool for distinguishing between assignable and chance cause variation. ❑ Invented control charts which are widely used across industries to monitor processes and to determine when there are changes in a process. ❑ Known for the introduction of the continuous improvement cycle – Plan –Do – Check –Act (PDCA). © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 18 Contribution of Quality Gurus Dr. W Edward Deming (1900-1993) Dr.Joseph M Juran(1904-2008) ❑ Made a significant contribution to Japan’s reputation for innovative, high-quality ❑ Made a significant contribution to Japan’s reputation for innovative, high-quality products and for its economic power. products and for its economic power. ❑ Championed the work of Walter Shewhart including statistical process control, ❑ Known for Juran Trilogy – quality planning, quality control and quality operational definitions and “Shewhart Cycle" which had evolved into PDSA (Plan- improvement. Do-Study-Act). ❑ First to apply the work of Vilfredo Pareto to quality issues - “vital few and trivial many”. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 19 Contribution of Quality Gurus Dr. Kaoru Ishikawa (1915-1989) Philip B Crosby(1928-2001) ❑ Considered as a key figure in the development of quality initiatives in Japan, Philip Crosby is known for his four absolutes of quality management: particularly the quality circle. ❑ Quality means conformance to requirements. ❑ Best known for the Ishikawa or fishbone or cause and effect diagram often used in ❑ Quality comes from prevention. the industrial processes analysis. ❑ Quality performance standard is zero defects. ❑ Translated, integrated and expanded the management concepts of W. Edwards Deming and Joseph M. Juran into the Japanese system. ❑ Quality measurement is the price of non-conformance © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 20 What is Digital Transformation Digital Transformation is a Process of implementing Digital Technologies by an organization to create a new product or services or even modify the current way of doing Business. It can be a holistic Transformation of Business Model through which organization works. Examples: IOT-Enabled Services. Digital Twins. Automation and Robotics e.g.: Robotic Process Automation(RPA) 3-D Printing. Cloud Computing and Digital Platforms. Augmented Reality(AR) and Virtual Reality. Remote Work and collaboration Tools. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 21 Lean Six Sigma can be used to support Digital Transformation in a number of ways. Lean Six Sigma principles and strategy provide a defined approach Lean Six Sigma Transformation to waste reduction, and continuous improvement. This makes it an important framework for organizations focusing on digital transformation Digital Value Stream Mapping (VSM), can be used to identify the Non- value-added activities and bottleneck as enabler for digital solution. KANBAN, helps visualize work, track progress and mange workflow, it can improve efficiency and transparency for digital work. IOT/Digital Twins, can help to predict the conditions of process. Robotic Process Automation (RPA), it can reduce the manual error and improve efficiency of process © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 22 Benefits of Lean Six Sigma for Digital Transformation Streamlined Processes and Waste Reduction Enhanced Quality and Reliability of Digital Solutions Accelerated Time-to-Market Improved Customer Experience and Satisfaction Data-Driven Decision Making Cultural Transformation and Change Management © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 23 Success Story General Electric (GE) Industry: Diversified conglomerate, with a focus on aviation, healthcare, power, renewable energy, and more Objective: In order to increase the dependability and decrease flaws in its turbines and generators, GE set out to do both. The objective was to use data analytics and digital transformation to optimise operations, decrease downtime, and improve customer happiness. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 24 Implementation step Data Integration and Analysis: GE collected operational data from its Power plant equipment’s with help of 1 Internet Of Things(IOT) and sensors and used Machine learning and Analytics to analyze the data to know equipment performance and chances of defects. Predictive Maintenance: With analysis of real time data from IOT devices and Sensors on their Equipment, GE 2 used predictive analytics algorithm to detect failures before they appeared and can schedule the maintenance plans. Remote Monitoring and Diagnostics: GE created remote monitoring capabilities to diagnose problems and 3 performance of the equipment from a virtual setup. Digital Twins: GE developed Digital Twins for there Turbines, Pumps, motor and other Power generating machinery 4 to replicate the Physical assets and compare the performance with real time data form IOT and sensors which help it to predict the issues and gave scope for preventive maintenance. Collaboration and Knowledge Sharing: GE with the help of Collaboration and Knowledge sharing tools and 5 platforms, promoted communication, information sharing among their employees across the Globe. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 25 Result and Benefits 1. Improved Equipment Reliability: By implementing predictive maintenance and remote monitoring, GE significantly improved the reliability of their power generation equipment. 2. Enhanced Operational Efficiency: The combination of remote monitoring, predictive maintenance, and digital twins led to improved operational efficiency. 3. Proactive Decision-Making: The use of digital twins provided GE with valuable insights into equipment behavior and performance. 4. Remote Support and Expertise: Digital collaboration tools enabled GE's engineers and experts to provide remote support and share their expertise with field personnel and customers. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 26 DMAIC approach 01. Define What are customer expectations of the process? 02. Measure What is the frequency of defects? 03. Analyze Why, when and where do defects occur? 04. Improve How can we fix the process? 05. Control How can we make the process stay fixed? © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 27 Multiple meanings of Sigma Standard deviation Process capability Management philosophy The Greek symbol A statistical measure of View processes/ measures ‘sigma’ which means process’s ability to meet completely f rom a standard deviation. customer requirements customer point of view. (CTQs). Continual improvement. Integration of quality and Is a measure of Process Sigma= 6s daily work. variation. equates to 3.4 defects per Satisfying customer million opportunities. needs profitably. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 28 Relationship between Sigma Levels and Defects Per Million Opportunity (DPMO) 6 3.4 DPMO 5 4 230 DPMO 6,210 DPMO 2 3 3,08,500 DPMO 66,800 DPMO 1 6,91,400 DPMO © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 29 Stakeholders in LSS organization Six Sigma Team 01 Apex Council 02 Champion or Sponsor 03 Process owner 04 Master Black Belt 05 Black Belt 06 Green Belt 07 Team Members © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 31 Apex Council Top Management: ❑ Accountable for Six Sigma business results. ❑ Develop a strong case for Six Sigma. ❑ Plan and actively participate in implementation. ❑ Create a vision and market “change”; Become a powerful advocate. ❑ Set clear , SMART (Specific , Measurable , Achievable , Realistic , Time bound) objectives. ❑ Hold itself and others accountable. ❑ Demand specific measures of results. ❑ Communicate results (including setbacks). ❑ Helping to quantify the impact of Six Sigma efforts on bottom line. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 32 Champion or Sponsor Senior Manager: ❑ Oversees a Six Sigma project. ❑ Is accountable to the Apex Council. ❑ Sets rationale and goal for project. ❑ Be open to changes in project definitions. ❑ Find resources (time, support, money) for team. ❑ Help the team overcome roadblocks; smoothen implementation. ❑ Focus on data-driven management. ❑ Identify and recruit other key players. ❑ Assist in identifying and developing training materials. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 33 Process Owner Functional Head: ❑ Implements solutions through Black Belts and project teams. ❑ Provide resources and helps resolve conflicts. ❑ Accountable to the Apex Council. ❑ Owns end-to-end process. ❑ Sets goals for projects. ❑ Project review: timeline and project is on track. ❑ Responsible for holding the gains. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 34 Master Black Belt Six Sigma Coach: ❑ Advise and mentor Black Belts and teams. ❑ Communicate with champions and apex council. ❑ Establish and adhere to a schedule for projects. ❑ Deal with resistance to Six Sigma. ❑ Resolve team conflicts. ❑ Estimate, measure and validate savings. ❑ Gather and analyze data on team activities. ❑ Plan and execute training. ❑ Help teams promote and celebrate successes. ❑ Document overall progress of Six Sigma. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 35 Black Belt Facilitator: ❑ Six Sigma implementation experts with the ability to develop, coach, and lead multiple cross-functional process improvement teams. ❑ Use tools to quickly and efficiently drive improvement. ❑ Facilitate to keep team focused on the project objective. ❑ Ensure that the Six Sigma methods are followed. ❑ Help teams learn and understand Six Sigma tools and techniques through regular project reviews. ❑ Responsible for the ultimate success of the project. ❑ Trains and develops Green Belts. ❑ Spread Six Sigma awareness throughout the organization. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 36 Green Belt Project Team Leaders: ❑ Lead and Execute Six Sigma as part of their daily jobs. ❑ Keep the project team focused on the project goal. ❑ Extract equal participation from all team members. Counsel nonparticipating team members and motivate them to participate. ❑ Ensure discipline of Team Meetings is followed and that every meeting starts with an Agenda. Ensure MOM is distributed the same day. ❑ Regularly follow up with team members to ensure that assigned tasks are completed on time. ❑ Manage conflicts and seek intervention of Process Owner / Champion if necessary. ❑ Dual responsibility of being process experts as well as trained resource on Six Sigma methods and quality tools. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 37 Team Members Process Experts: ❑ Team members are vital for success. ❑ Good knowledge of product, process, customer. ❑ Willing to work in teams. ❑ Time to work on projects. ❑ Active in Data collection. ❑ Responsible for improvement. ❑ High Participation. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 38 Classroom Quiz © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 39 Module-2 Define Phase  Lean Six Sigma Green Belt Training Flowchart Module-2 Customer and Voice of Project Charter Process Mapping Customer(VOC) Business Case SIPOC Understanding Customer Problem Statement Sub-process mapping Gather VOC Goal Statement (SMART) Sub-process examples Affinity Diagram Project Scope/Milestone Process Mapping Guidelines Kano Model Roles and Responsibilities SIPOC (Group Exercise) VOC to CTQ Sample Project Charter Simulation on Case study Group exercise on the Group exercise for Project identifying CTQ Charter © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 41 Module-2 Learning Objectives By the end of this module participants will be able to learn: ✓ How to identify customer and capture their voice ✓ Recognize the significance of VOC & CTQ ✓ Use categorization and prioritization techniques ✓ Demonstrate how to derive CTQ, on the basis of VOC. ✓ Use Affinity model and Kano Model to categorize as well as prioritize VOCs ✓ Demonstrate how to prepare project charter ✓ Learn how to prepare process map (SIPOC) © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 42 Customer and Voice of Customer(VOC) Understanding of Customer Customers can be Internal or External ❑ Define products or services provided to customer. ❑ Identify related process. ❑ Are your customers – External and (or) Internal ?? Process Deliverable Person Placed in Customer (Internal) Hiring Technical the Position Directors & Managers Personnel Process Accounts Deliverable: Payment of Invoices Customer Payable (External) Suppliers © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 44 What does your customer need? Before you approach to a business problem, ask these questions: ❑ How does the customer view my process? ❑ What does the customer look at to measure my performance? ❑ What does the customer need from me to fulfill his process? The approach towards any problem must be “Outside-In”, that is view the problem from customer’s perspective. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 45 Gather Voice Of Customer (VOC) Key Considerations In Collecting Customer Data: ❑ Collector’s bias may affect what is heard. ❑ What contact/relationship do you have with the customer? ❑ What are your time constraints? ❑ What budget is available? ❑ How much certainty to do you need to move forward with the project? ❑ Ensure customer expectations are aligned with our intentions/actions. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 46 Gather Voice Of Customer (VOC) Identify customer Gather verbatim VOC and segments that need to be How? determine service quality issue targeted What? List your customers Review existing VOC data Define customer segments Decide on what to collect Narrow the list of customers Use appropriate tools to gather VOC Gather VOC – Surveys – Interviews – Be a customer – Focus group – Customer observation – Listening posts – Competitive comparison Collect data © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 47 Tools for analyzing VOC How do I analyze these countless VOCs ? Affinity Diagram(> than 10 VOC) Kano Model (up to 10 VOC) © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 48 Affinity Diagram ❑ Record each VOC on a post it note in bold letters. ❑ Without talking, sort the ideas simultaneously as a team into 5 –10 related groupings. ❑ For each grouping create summary or header cards using consensuses. ❑ Draw the final affinity diagram connecting all finalized header cards with their grouping. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 49 Affinity diagram – An Example Flexible product Easy process Availability Personal interface Advice/consulting Knows about my Low interest rate Easy application Will come to my facility Knowledgeable reps finances Available outside normal business Knows about my Variable terms Easy access to capital hours Professional business Makes finance All charges clearly stated Quick decision Available when I need to talk Friendly suggestions Make me feel Cares about my Pay back when I want Can apply over phone Responsive to my calls comfortable business No prepayment Know status of loan during Patient during Talk to one-person Has access to experts penalties/ charges application process Know status of loan (post- Provides answers to Pre-approved credit Available on chat Calm during process approval) questions Preference if bank Variable terms Schedule as per availability Professional Calls if problems arise customer Organize VOC into broad categories © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 50 Kano Model Purpose: ❑ To identify & prioritize the full range of the customers needs. ❑ Kano model helps to describe which needs, if fulfilled contribute to customer dissatisfaction neutrality or delight. ❑ Kano Model Identifies: 1. Must be needs - Critical to customer expectation. 2. More is better – Critical to customer satisfaction. 3. Delighter – Converting wants to needs. How to built? ❑ Gather sorted customer needs. Classify the needs into 3 Categories: 1. Must be 2. More the better 3. Delighters If there is insufficient data to enable the classification, collect addition data on VOC. ▪ Prioritize the customer needs to develop the CTQ. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 51 Prioritizing VOC for CTQ Identification – Kano model SATISFACTION MORE THE BETTER DELIGHTERS + (One-dimensional) INNOVATION COMPETITIVEPRIORITY Free upgrades Seat comfort Individual movies and games Quality of refreshments Special staff attention/services Friendliness of staff Computer Baggage speed On-time plug- ins arrival (power sources) DYSFUNCTIONAL - + FUNCTIONAL MUST BE CRITICAL PRIORITY Safe arrival Accurate booking Baggage arrives with passenger - 99 per cent system uptime DISSAT ISFACTION KANO MODEL HELPS TO PRIORITIZE OUR EFFORTS TOWARDS SATISFYING CUSTOMERS © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 52 Translating VOC into CTQs V OC C T Qs Identify customer Translate to needs statement and Gather verbatim VOC and segments that need to be develop a CTQ - project Y metric determine service quality issue targeted output characteristic CTQs: Critical To Quality Characteristics A specific measurable attribute of the output that is a key requirement for customer satisfaction © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 53 Example: Translating Voice of Customer (VOC) to Critical To Quality (CTQ) Verbatim Specific need CTQs ‘You take too much time in getting back to me!’ Quick response. Process turn around time not more than10 minutes. "Your bank takes forever to process the loan" Quick processing time Turn around time for loan processing < 72 hours What gets measured gets managed… help ensure measurable CTQs © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 54 Classroom Quiz © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 55 Project Charter What is a Project Charter? One of the most important things necessary to get a team started on a footing is a charter. A Charter: ❑ Clarifies what is expected of the project. ❑ Keep the team focused. ❑ Keeps the team aligned with organizational priorities. ❑ Transfers the project from the Champion to the Improvement Team. ❑ Used as a tool by the Apex Council to review project progress. © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 57 Elements of a project charter Goal statement Milestone/ project plan What is the estimated target for improvement? Key milestones/ timelines/detailed plan Resources/ team members Roles Who are the key resources? What will be the 03 05 roles of BBs/ GBs/Sponsor/MBB’s Business case/ Benefits 01 04 06 Does project “Y” link to business Y’s? 02 Project scope Clearly defining project’s In scope and Out of Scope Problem/ opportunity statement What is the problem/opportunity of improvement? © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 58 Business case A Good Business case should answer these questions: ❑ Why is this project worth doing? ❑ Why is it important to do now? ❑ What are the consequences of not doing this project? ❑ What activities have higher or equal priority? ❑ How does it fit with business initiatives and targets? © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 59 Problem Statement The purpose of the Problem Statement is to describe what is wrong - Description of the “pain” ❑ What is wrong or not meeting our customer’s needs? ❑ When and where does the problem occur? ❑ How big is the problem? ❑ What’s the impact of the problem? Key Points / Potential Pitfalls ❑ Is the problem based on observation (fact). ❑ Does the problem statement prejudge a root cause? ❑ Can data be collected by the team to verify and analyze the problem? ❑ Is the problem statement too narrowly or broadly defined? ❑ Is a solution included in the statement? ❑ Is the statement blaming any person or function? © 2024 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Document Classification: KPMG Public 60 Problem Statement - Examples Example 1 Poor Statement Because our customers are dissatisfied with our service, they are late