Test Content Part 2.pptx

Project Selection 1 Selecting The Right Projects Discussion Topics • What criteria would you use when selecting Lean Six Sigma projects? • Identify some potential Lean Six Sigma projects. o Do these projects meet the criteria you have just defined? o What key Business issues / objectives are addr...

Project Selection 1 Selecting The Right Projects Discussion Topics • What criteria would you use when selecting Lean Six Sigma projects? • Identify some potential Lean Six Sigma projects. o Do these projects meet the criteria you have just defined? o What key Business issues / objectives are addressed by this Six Sigma Operational Excellence project? o Is there an identified “process owner”? o What authority is needed to implement changes to this process? o How will you measure success? 2 Selecting The Right Projects • Well-selected and defined improvement projects will translate into better, faster results • The “Right Projects”: o Are linked to a key business issue or objective o Are prioritized based on the value to the Business and the resources and time required o Have clearly defined deliverables o Have an identified “process owner” o Have defined boundaries o Have “SMART” objectives 3 Selecting The Right Projects pecific easureable chievable but aggressive elevant to the business strategy ime bound 4 Selecting The Right Projects Well selected + Well defined = Better, faster results 5 Measuring Projects • Reduction in defects (PPM) • Improvements in fixed or variable costs • Reduction in the Cost of Poor Quality • Improved capacity • Improved cycle time • Higher service level • Reduction in transaction lead time 6 Focus the Project Scope Possible Indicators Business Objective Improve Delivery To Request For Product XYZ Process Yield Cost of Poor Quality Cycle Time 7 Focus the Project Scope Possible Indicators Business Objective Improve Delivery To Request For Product XYZ Process Yield Cost of Poor Quality Cycle Time 8 Focus the Project Scope A B C Yield 85% 92% 98% Scrap .10 .30 .05 Capacity 1000 1200 500 9 Focus the Project Scope Baseline the current performance of the process steps A B C Yield 85% 92% 98% RTY = 76.7% Scrap .10 .30 .05 .45 per unit Capacity units/day 1000 1200 500 500 10 Focus the Project Scope 100 90 80 300 F r e q u e n c y 70 60 200 50 Cumulative Percent 40 30 100 20 10 0 1 2 3 DEFECTS 4 Other 0 6 11 Project Do’s And Don’ts •• Don’ts Do’s o Choose o Base the too many projects projects o improvement Create “world hunger” projects solid criteria o on Fail to explain the rationale for project o Balance efficiency selection and cost reduction projects with benefits to the customer o Prepare for an effective project hand off in the control phase 12 The DMAIC methodology Getting Started 13 Problem Solving Decision Making Process Type of Problem Gut feel, intuition Simple Follow obvious data Graph and chart data, Trends Analytical Tools to zoom in on root causes Advanced Statistical Tools to Evaluate Data Complex 14 Lean Six Sigma Methodology • Lean Six Sigma removes the “I think” or “I feel” terms from the solution. It provides a mathamatical relationship to give you a data driven solution. • In order to arrive at this solution the DMAIC methodology is used: D Define M A I C Measure Analyze Improve Control 15 DMAIC Funneling Define 20+ Inputs All Inputs (Xs) Measure 10 – 12 Inputs 8 – 10 Inputs Analyze 1st Hit List Improve Screened Inputs 6 – 8 Inputs Critical Inputs 3 – 6 Inputs Control Inputs Control 16 DMAIC Methodology 17 DMAIC Methodology 18 What To Do First ... •Define •Measure •Analyze •Improve •Control 19 Purpose Define • Define project purpose and scope • Obtain background information about the process and its customers • Attain the the Voice of the Customer • Select project objectives • • • • • • • • • Tools Voices SIPOC OEE / TRS RTY CTQ Tree Data collection Cycle Time Takt Time Project Charter 20 Voice of the Customer Our Performance Customers’ Need 21 DEFINE Voice of the Customer 22 Process Check Develop Develop Business Business Case Case and and Project Project Charter Charter Create Create High High Level Level Process Process Map Map Gain Gain the the Voice Voice of of the the Customer Customer 23 Supplier Perception vs. Customer Reality Supplier Customer Perception Reality Airport rental car company’s perspective: What a customer wants in a car: • Visible car - White Business Traveler’s perspective: What a customer wants in a car: • Cars that don’t break down • Pay for tank of gas • Option to drop cars • Full size sedans • Fast terminal pickup • Transportation from terminal • More SUV’s 24 Goals o Understand criticality in gaining the Voice of the Customer (VOC) o Create a plan for gathering the VOC o Be able to use a tree diagram (CTQ Tree) to identify customer requirements and set specifications o Use the Kano Analysis to understand gaps o Identify Project Y(s) 25 Converting customer needs into product requirements Customers aren’t clear about what they want or provide conflicting requirements. We need to utilize methods which help us to understand customer needs and translate them into internal requirements After we have translated customer needs to internal requirements we must be able to measure and determine product and process capability 26 What is the Voice of the Customer? • The term Voice of the Customer (VOC) is used to describe customers’ needs and their perceptions of your product or service. 27 Why VOC Is Critical • VOC data helps an organization o Decide what products and services to offer o Identify critical features and specification for those products and services o Decide where to focus improvement efforts o Get a baseline measure of customer satisfaction to measure improvement against o Identify key drivers of customer satisfaction 28 VOC Plan Features List the main customers who use your product and service and make notes about potential segments that might be relevant to your project. Make sure you include all relevant internal and external customers (for example intermediate customers such as logistics provider, warehousing etc.) Project Worksheet #6: VOC Plan PROJECT: ___________ Who What & Why Think about what you need to know from these customers Sources REACTIVE SOURCES PROACTIVE SOURCES Summary Look for diverse sources of information about customer needs. Summarize specifically which customers you will contact, when, and how. 29 The VOC Plan Step 1: Specify the Customer’s (Hint: Use your SIPOC) Step 2: Indicate specifically what you want to know from your customers about your product/process. 30 Sample Questions • For all customers, you should ask questions such as: 1. What is important to you about our product/service? (Ask them to rank each of these needs in order of importance.) 2. What do you think of as a defect? 3. How are we performing on the areas you consider important? 4. What do you like about our product/service? 5. What can we improve about our product/service? What can we do to make your job easier? 6. What specific recommendations would you make to us? 31 Basic VOC Systems Step 3: Determine what sources you will use to generate VOC data. Use Reactive systems first. 1. Reactive systems Information comes to you whether you take action or not 2. Proactive systems You need to put effort into gathering the information 32 Typical Reactive Systems o Customer complaints (phone or written) o Problem or service hot lines o Technical support calls o Customer service calls o Claims, credits, contested payments o Sales reporting o Product return information o Warranty claims o Web page activity • Reactive systems generally gather data on: o current and former customer issues or problems o current and former customers’ unmet needs o current and former customers’ interest in particular products or services 33 Proactive VOC Systems o o o o o o o o o Interviews Focus groups Surveys Comment cards Data gathering during sales visits or calls Direct customer observation Market research, market monitoring Benchmarking Quality scorecards 34 Surveying Guidelines • Include an introduction that is enticing and clearly states the purpose of your research. Also include instructions on how to complete the survey and an estimate of how much time it will take. • If your questions are biased, unclear, or ambiguous, you will get misleading responses. • Consider how specific the questions need to be and whether your audience is willing and able to answer them. • To maximize results, make sure you: • Ask questions that provide the information you need to solve your problem. • Avoid technical terms, jargon, and acronyms. • Organize your questions in logical groups. Web surveying makes this easy • Ask important questions first -- demographic questions last. • Be sensitive to the feelings of the respondent. • Keep your survey short, simple, and to the point. • Finish your survey with a place for participants to add comments and thank them for their assistance. 35 VOC Exercise o Using the template below, take 10 minutes and begin creating a VOC plan for your project . Be prepared to discuss with the class. 36 Voice of Business (VOB) • The Voice Of the Business are the needs, wants, expectations, and preferences, both spoken and unspoken, of the people who constitute (run) the business itself (e.g., shareholders, officers, or others involved in corporate governance). • Example metrics from VOB: o o o o Revenue Growth % Market share Margin • The sweet spot for a project objective is where VOC and VOB overlap. 37 Voice of Team (VOT) & Voice of Benchmark (VOX) • The “voices” are what guide you to your objective. • VOT and VOX are also important voices to consider. • Examples of VOT: o What problems are the team members consistently facing with the current process? o Which aspects of the process do the team members think can be improved? o Do the team members feel like they have the tools to aid in the process improvement? • Examples of VOB: o Which Michelin plant has the best lead time for this process globally? Can we also achieve this lead time? What similarity or differences between our plants affects these lead times? 38 DEFINE SIPOC 39 Create High Level Process Map o Understand the process view. o Apply the steps within a SIPOC (supplier, input, process, output, customer) to your process o Gain confidence in the concept of Rolled Throughput Yield for identifying opportunities for immediate focus o Best to start the SIPOC from the right side – using the voice of customer. 40 The Process • All activities take the form of a process. • The quality level of a product or service is directly related to the bounded process steps. • In general, people tend to look at failures in isolation, and ignore the variation within the process as a cause. • As business leaders, we must address the process as a whole in order to make real change. 41 The High Level Process View Suppliers Inputs • Mankind • Machines • Material • Methods • Measures • Mother Nature Process Step A Outputs • Products • Services • Documents • Decisions Customers • External • Internal Step B Step C o The high level view of a process helps • Clarify project boundaries (start and stop points) • Understand potential causal relationships to be explored later • Identify the Customers impacted by the process for gaining the Voice of the Customer (VOC) 42 Purpose of the SIPOC o To create a high-level view of the process o To prevent scope creep o To identify potential areas for improvement o To generate a list of customers for your process 43 Process/Product Performance Indicators for Efficiency Process Yield / Rolled Throughput Yield Cycle Time Takt Time Overall Equipment Effectiveness 44 Process Yield 1000 pcs Step A Step B End of Process Yield Good X 100 Opportunities Step C 10 BAD = 990 / 1000 X 100 = 99% 990 Good 45 Process DPMO (Nonconform Rate) 1000 pcs Step A Are we seeing everything? Step B End of Process DPMO Step C Defects 10 BAD X 1,000,000 Opportunities = 10/ 1000 X 1MM = 10,000 990 Good 46 Process DPMO (Nonconform Rate) 1000 pcs Step A 48 Parts Reworked 76000 DPMO Step B 76 Parts Reworked Step C The Hidden Factory 48000 DPMO 10 BAD 990 Good 47 Rolled Throughput Yield 1000 pcs Step A 95.2 % Yield 48 Parts Reworked 952 Good Step B 92.4 % Yield 924 Good Step C RTY = .952x .924 x .99 = 0.8708 = 87.1% 76 Parts Reworked 10 BAD 99 % Yield 990 Good 48 Rolled Throughput Yield o Collect yield measures for each process step o Calculate rolled throughput yield to establish a baseline for the entire process o Revisit your project scope o Significant differences in yield suggest creating a new map or refocusing your project on the sub-process with the lowest yield Start Stop Y RT P lass lass Y ield 95% 44% Y ield Y ield 95% 60% Y ield Y ield 90% 90% 49 Cycle Time: Little’s Law  Exit rate is the count of how many units leave the system in a given time  Work in process is the count of how many units are in the process at a given time  Cycle time should match the “heartbeat” of the process: o o Called takt time This enables one-piece flow, just-in-time, and other benefits 50