Lean six sigma green belt training
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Lean Six Sigma Green Belt Training. UNIT 3 Analyze. Analyze – Learning Objectives. At the conclusion of this unit, you will be able to: “Peel back” the layers of the causal chain to identify potential causes of process problems.

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Lean six sigma green belt training

Lean Six Sigma Green Belt Training


Lean six sigma green belt training

UNIT 3

Analyze


Analyze learning objectives

Analyze – Learning Objectives

  • At the conclusion of this unit, you will be able to:

  • “Peel back” the layers of the causal chain to identify potential causes of process problems.

  • Complete a fishbone diagram to identify potential root causes.

  • Confirm root causes with data.

Ref Unit 3-1


Analyze major activities

Analyze – Major Activities

DEFINE

MEASURE

ANALYZE

IMPROVE

CONTROL

Identify Potential Root Causes

Collect Data to Confirm

Root Causes

Identify Potential Causes

Overall objective: Identify and confirm the root causes of the revised problem statement.

Ref Unit 3-2a


Analyze key deliverables and commonly used tools

Analyze –Key Deliverables and Commonly Used Tools

Ref Unit 3-2b


Analyze major activities1

Identify Potential Causes

Analyze – Major Activities

DEFINE

MEASURE

ANALYZE

IMPROVE

CONTROL

Identify Potential Root Causes

Collect Data to Confirm

Root Causes

Ref Unit 3-3a


Identify potential causes

Identify Potential Causes

  • Analysis is a search for causes

  • Many causes may be identified

  • The objective is to identify those causes that most significantly contribute to the problem - root cause

Cause and effect analysis begins with experience‑based guesses and progresses toward data-based proof.

Ref Unit 3-3b


Cycle time analysis

Cycle

Time

Process

Customers

Suppliers

Outputs

Inputs

Cycle Time Analysis

Cycle time is the total time required to perform all process activities, including both value-add and non-value-add time.

Ref Unit 3-4a


Cycle time analysis1

NET

WORK

WASTE

ALL

WORK

AUXILIARY WORK

Cycle Time Analysis

Waste vs. Work

Eliminate Non-Value-Added Actions

Increase Value-Added Work

Typically 50-75% of work in manufacturing and 60%-75% of work in transactional processes is non-value add.

Minimize Non-Value-Added

But Necessary Work

Ref Unit 3-4b


Cycle time analysis2

Cycle Time Analysis

(cont’d.)

Lean Thinking

  • Identify waste

  • Define what is value-add and not

  • Measure cycle time

Ref Unit 3-5a


Cycle time analysis3

Cycle Time Analysis

(cont’d.)

Seven Types of Waste

  • Processing

  • Waiting

  • Motion

  • Inventory

  • Transportation

  • Overproduction

  • Correction

Ref Unit 3-5b


Cycle time analysis4

Cycle Time Analysis

(cont’d.)

Processing Waste

  • Information is requested but not actually required, e.g. application forms

  • Exception processing / rework required by defects in the process

  • Activities no longer needed, but still a part of the process

Inventory

Ref Unit 3-5c


Cycle time analysis5

Cycle Time Analysis

(cont’d.)

Waiting Waste

  • Colleagues not being able to perform work, e.g., IT system is down

  • Only one fax available for department – often in use

  • Bottlenecks

  • Delays waiting for decisions to be taken before being able to continue work

Inventory

Ref Unit 3-5d


Cycle time analysis6

Cycle Time Analysis

(cont’d.)

Motion Waste

  • Inefficient office layout, requiring frequent movement for colleagues to collaborate

  • Redundant activities – more than one person doing the same thing

  • Client files move to storage while still requiring consultation

Inventory

Ref Unit 3-5e


Cycle time analysis7

Cycle Time Analysis

(cont’d.)

Inventory Waste

  • Extra brochures are printed ‘just in case’

  • Stationary is ordered annually requiring storage space

  • Piles of ‘Work In Progress’ exist between process steps

  • Physical files are stored on department floor

Inventory

Ref Unit 3-5f


Cycle time analysis8

Cycle Time Analysis

(cont’d.)

Transportation Waste

  • Unnecessary movement of paperwork and equipment

  • Often linked to poor office lay-out

  • Using Internal Mail / Fax to hand over work to colleagues

Inventory

Ref Unit 3-5g


Cycle time analysis9

Cycle Time Analysis

(cont’d.)

Overproduction Waste

  • We produce more or earlier than required

  • Process output is increased to ensure enough quality items are produced

  • Multiple data entries for same information

  • Manual work - not taking advantage of system capability

Inventory

Ref Unit 3-5h


Cycle time analysis10

Cycle Time Analysis

(cont’d.)

Correction Waste

  • Process errors are allowed to move to the next process step without finding preventive solution

  • Orders are checked 5 times before sending to customer

  • All orders are checked on quality vs. sampling

Inventory

Ref Unit 3-5i


Cycle time analysis11

Value-Added Time

Customers care about it; they are willing to pay for it

The process activity physically changes the product/service

Re-work is not involved; the work is done right the first time

Non-Value-Added Time

Processing

Waiting

Motion

Inventory

Transportation

Overproduction

Correction

Cycle Time Analysis

(cont’d.)

  • Do not get too hung up on what type of waste it is

  • Focus on finding a sustainable way to remove it

Ref Unit 3-5/6


Cycle time analysis12

Cycle Time Analysis

(cont’d.)

Measuring Cycle Time

  • Decide whether to measure cycle time on the entire process or a sub-process

  • Use a flowchart/process map

  • Develop operational definitions for the starting and ending points of each activity

  • Develop consensus about what is value-added and what is non-value-added time

  • Create a data collection form to identify which activities will yield the most process improvement

Ref Unit 3-7a


Cycle time analysis13

Cycle Time Analysis

(cont’d.)

Useful Cycle Time Data

  • Estimated cost/activity – total cost, not activity-based cost

  • Process time – value-add time per unit

  • Change-over time – time required to change from one type of product/service to another, including learning time

  • Queue time – time spent waiting to be processed

  • Takt time – the rate at which output is completed, compared to customer demand

  • Complexity – the number of different products/services processed at the activity

  • Uptime – time worked per day minus breaks and interruptions

  • Defects and rework – time needed to correct defective products/services

Ref Unit 3-7b


Cycle time analysis14

Cycle Time Analysis

(cont’d.)

Cycle Time Data Collection

Ref Unit 3-8


Activity

Activity

Identify cycle time waste in your process.

Ref Unit 3-9


Identify potential causes1

Identify Potential Causes

  • Gather Many Causes

  • Use data from Measure Step

  • Talk with people

  • Focus on what you know

  • Think about sources of variation – people, materials, methods, equipment, environment

  • Review past records

Ref Unit 3-10


Identify potential causes2

Brainstorming

Identify Potential Causes

(cont’d.)

  • Brainstorming approaches

  • Brainstorming guidelines

Ref Unit 3-11


Analyze major activities2

Analyze – Major Activities

DEFINE

MEASURE

ANALYZE

IMPROVE

CONTROL

Identify Potential Root Causes

Collect Data to Confirm

Root Causes

Identify Potential Causes

Ref Unit 3-12a


Identify potential root causes

Identify Potential Root Causes

The search for potential causes evolves to a selection of those causes most likely to be the reason for the revised problem statement.

Ref Unit 3-12b


Identify potential root causes1

Agents not notified on time

Twice requirement

System error

Delivery delay

Heavy workload

Branch clerk

Forget to scan image

Identify Potential Root Causes

(cont’d.)

Cause and Effect Analysis

People

Equipment

Delayed receipt/reply to requirement

Requirement expired after deadline

Inconvenient

Underwriter

Not aware of requirement

Agent

No follow-up/not enough follow-up

77% non-ME cases not issued on time involved missing or unclear information on the policy application

Avoidable requirement

Underwriter

Inconvenient

Agent slow to respond

Requirement can only be printed in home office

Training

Agents can only get requirement in branch office

Environment

Red words are actionable

root causes

Methods

Ref Unit 3-12c


Identify potential root causes2

Major Bone

Major Bone

1st Level Cause

1st Level Cause

Revised Problem Statement

3rd Level

2nd Level

2nd Level

1st Level Cause

1st Level Cause

1st Level Cause

3rd Level

2nd Level

2nd Level

3rd Level

2nd Level

Major Bone

2nd Level

Major Bone

4th Level

May be more than one

5th Level

Identify Potential Root Causes

(cont’d.)

Fishbone Diagram

Review for Continuity

Ref Unit 3-15


Identify potential root causes3

Identify Potential Root Causes

(cont’d.)

Affinity Cluster Approach

  • Brainstorm possible causes for problem statement

  • Arrange causes into affinity clusters

  • Label each cluster

  • Expand causal levels for each major bone

Ref Unit 3-16


Identify potential root causes4

Fish boning tip:

Write the causes on post-it notes as you identify them. This facilitates moving them around.

Identify Potential Root Causes

(cont’d.)

Affinity Cluster Approach (cont’d.)

  • Brainstorm possible causes for the problem statement.

  • Focus on the problem statement developed in the Measure step and brainstorm causes for it to occur.

Ref Unit 3-17


Identify potential root causes5

Identify Potential Root Causes

(cont’d.)

Affinity Cluster Approach (cont’d.)

  • Arrange possible causes into affinity clusters.

  • Clarify the meaning

  • Sort into clusters according to affinity.

  • Adding new items is okay, as is editing.

  • If a cause seems to fit into two different clusters, make another post-it note and place one in each cluster.

Ref Unit 3-18a


Example

Duplicated

Edited

Example

Brainstorm list

  • Data entry error

  • Not familiar with rules

  • No system support

  • Inefficient scanner

  • Documents not checked

  • Operations delays

  • Process not well defined

  • Different operating systems in use

  • Manual calculations required

  • Short-sighted planning for new product

  • Applicable rules must be checked manually

  • New product launch was expedited

Conversion form delayed

Manual calculations required

Process not well defined

Affinity

Clusters

Operations delays

New product launch was expedited

Applicable rules must be checked manually

Short-sighted planning for new product

Data entry error

Applicable rules must be checked manually

Not familiar with rules

Inefficient scanner

No system support

Documents not checked

System support not available at this time

Different operating systems in use

Ref Unit 3-18b


Identify potential root causes6

Identify Potential Root Causes

(cont’d.)

Affinity Cluster Approach (cont’d.)

  • Label each cluster.

  • Focus on one cluster.

  • Discuss what the listed causes have in common.

  • Agree on a name for that cluster.

  • Draw a main bone and label it with cluster name.

Ref Unit 3-19a


Example1

People

New Product Launch Process

Conversion form delayed

Manual calculations required

Process not well defined

Operations delays

New product launch was expedited

Applicable rules must be checked manually

Short-sighted planning for new product

Data entry error

Systems

Not familiar with rules

Applicable rules must be checked manually

Add to fishbone where appropriate

Documents not checked

System support not available at this time

Different operating systems in use

Inefficient scanner

Example

Affinity

Clusters

People

Systems

Turnaround time for 83% of XYZ product clean cases exceeds seven working days

New Product Launch Process

Ref Unit 3-19b


Identify potential root causes7

Identify Potential Root Causes

(cont’d.)

Affinity Cluster Approach (cont’d.)

  • Expand causal levels for each major bone.

  • Use the causes listed in each cluster.

  • Write new ideas on post-it notes.

  • Modify wording/placement of causes.

  • Continue with all major bones in same manner.

  • Check for continuity – Ask, “Does this level cause effect this other level cause?”

  • You should be able to answer yes at each level.

Ref Unit 3-20a


Example2

Example

Ref Unit 3-20b


Identify potential root causes8

Identify Potential Root Causes

(cont’d.)

Ask Why 5 Times

  • Ask, “Why does this (cause) happen?”

  • Keep asking until answers are not actionable.

  • Why are 84% of Proposals not sent on time?

    Answer: Sales Rep. doesn’t make decision in time.

  • Why isn’t decision made in time?

    Answer: Sales Rep. busy researching to prepare response.

  • Why is Sales Rep. busy researching?

    Answer: Uncertain about products, services, & pricing.

  • Why is Sales Rep. uncertain?

    Answer: Does not always have new product information.

  • Why doesn’t Sales Reps. have information needed?

    Answer: Didn’t know information was needed.

84% of proposals not prepared on time for manager’s approval involve delays.

1. Cause

2. Cause

3. Cause

4. Cause

5. Cause

Ref Unit 3-21


Identify potential root causes9

Identify Potential Root Causes

(cont’d.)

Select Root Causes of Revised Problem Statement

  • Usually the source of other causes.

  • Occurs several times during analysis.

  • Is not a symptom.

  • Trust instincts.

  • May be more than one root cause.

  • Focus on causes you can measure/control.

Ref Unit 3-22


Activity1

Activity

Practice fishbone diagram.

Ref Unit 3-23


Analysis major activities

Analysis – Major Activities

DEFINE

MEASURE

ANALYZE

IMPROVE

CONTROL

Collect Data to Confirm

Root Causes

Identify Potential Root Causes

Identify Potential Causes

Ref Unit 3-24


Collect data to confirm root cause

Collect Data to Confirm Root Cause

Testing Theory with Data

  • The data collected in the Measure step may help.

  • Collect new data if existing data does not confirm your theory.

  • Use “paired data” to enable comparison between the potential root cause and the problem statement (effect).

  • If a positive relationship exists between occurrences of the potential root causes and changes in the problem statement data, your theory is confirmed – you have found a root cause.

Ref Unit 3-25a


Collect data to confirm root cause1

Collect Data to Confirm Root Cause

(cont’d.)

Cause Data, X

Effect Data, Y

Ref Unit 3-25b


Collect data to confirm root cause2

Cause Data, X

Attribute

X1

X2

X3

Effect Data, Y

YData

Ya

Attribute

Yb

XData

Collect Data to Confirm Root Cause

(cont’d.)

Ref Unit 3-26


Collect data to confirm root cause3

Collect Data to Confirm Root Cause

(cont’d.)

Scatter Plots

When both cause and effect data are continuous

Scatter plots clarify the relationship between two variables. They help you:

  • Discover whether two variables are related

  • Find out if changes in one variable are associated with changes in the other

Sale Amount (Y effect)

Note: Finding a relationship does not always imply causation

Time Spent with Customer (X cause)

Ref Unit 3-27


Collect data to confirm root cause4

Collect Data to Confirm Root Cause

(cont’d.)

Scatter Plots

Positive Correlation

Negative Correlation

No Correlation

Possible Positive Correlation

Possible Negative Correlation

Ref Unit 3-29


Collect data to confirm root cause5

Collect Data to Confirm Root Cause

(cont’d.)

Stratified Frequency Plots

Attribute causal data; Continuous problem data

Theory: Variation in training, technique, and procedures at different locations accounts for how long it takes to complete insurance application

Data: Measure time needed to complete application at different locations

Location A

Time to Complete

Application

(all locations)

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

Location B

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

Location C

8

9

10

11

12

13

14

15

16

17

18

19

20

21

7

Minutes

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

Ref Unit 3-30a


Collect data to confirm root cause6

(cont’d.)

Made the Sale

5

10

15

20

25

30

3

5

40

45

50

55

60

>60

Time With Customer(in minutes)

Did Not Make the Sale

5

10

15

20

25

30

3

5

40

45

50

55

60

>60

Time With Customer(in minutes)

Collect Data to Confirm Root Cause

Stratified Frequency Plots

Continuous causal data; Attribute problem data

Theory: More time spent with a customer, the more likely to make a sale

Data: Measure time spent with customer and separate into two categories:

  • Made sale

  • Did not make sale

Ref Unit 3-30b


Collect data to confirm root cause7

“X” Cause: Poor Legibility

Not Present

Present

77

23

Present

A root

cause!

“Y” Defect:Data errors

89

11

Not Present

n = 200

Collect Data to Confirm Root Cause

(cont’d.)

Contingency Tables

Attribute causal data (x); Attribute problem data (y)

Ref Unit 3-32


Collect data to confirm root cause8

Collect Data to Confirm Root Cause

(cont’d.)

More Than One Root Cause

  • What does the data tell you about the contribution each makes to the problem?

  • Select confirmed root causes that have the greatest impact on the problem statement to conserve resources.

Ref Unit 3-34


Activity2

Activity

Create a fishbone diagram for your revised problem statement; Identify potential root causes; Plan how to confirm root causes with data.

Ref Unit 3-35


Analyze tollgate questions

Analyze Tollgate Questions

  • What process deficiencies produce wasted cycle time in your process? Why?

  • What potential root causes were identified? How?

  • How do you know whether one root cause has greater impact than another?

  • How was root cause verification demonstrated?

Ref Unit 3-36


Unit summary

Unit Summary

  • What are the three tests to determine if a process activity is Value-Add?

  • How does cause and effect analysis “peel back” the layers of the causal chain to uncover potential root causes of process problems?

  • What are the components of a fishbone diagram?

  • What is involved when confirming suspected root causes?

Ref Unit 3-37a


Project components analyze

Scatter Plots

Customer

Customer

5

10

15

20

25

30

3

5

40

45

50

55

60

>60

5

10

15

20

25

30

3

5

40

45

50

55

60

>60

Y

5

5

10

10

15

15

20

20

25

25

30

30

3

3

5

5

40

40

45

45

50

50

55

55

60

60

>60

>60

Stratified Frequency Plots

Time With Customer

X

(in minutes)

Cause and Effect Diagram

Root

Contingency Table

Sub Cause

Cause

1

Level 2 Cause

Made the Sale

Made the Sale

Level 3 Cause

Level 1 Cause

Level 1 Cause

Yes

No

Revised

ProblemStatement

5

5

Level 2 Cause

5

5

10

10

15

15

20

20

25

25

30

30

3

3

5

5

40

40

45

45

50

50

55

55

60

60

>60

>60

Level 1 Cause

Present

Level 1 Cause

Did Not

Make the Sale

Level 2 Cause

Did Not Make the Sale

Level 1 Cause

Defect

Root

Level 2 Cause

Cause

5

5

2

Not

Present

5

5

10

10

15

15

20

20

25

25

30

30

3

3

5

5

40

40

45

45

50

50

55

55

60

60

>60

>60

Time With Customer

(in minutes)

Project Components: ANALYZE

Overall objective: Identify and confirm the root causes of the problem statement.

From Measure Step

Confirm Root Causes with Data

Identify Value Added & Non-Value Added Steps

Continuous Data

Brainstorm and Organize Potential Causes

Mixed

Data

To Improve Step

Attribute

Data

Ref 3-37b


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