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Lean Six Sigma Green Belt Training. A. Workshop Goals. This Workshop will help you learn to: Implement a systematic approach to identify, map and control existing processes.

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Lean six sigma green belt training

Lean Six Sigma Green Belt Training

A


Workshop goals

Workshop Goals

This Workshop will help you learn to:

  • Implement a systematic approach to identify, map and control existing processes.

  • Develop upstream and outcome metrics and targets that track process performance in satisfying critical customer requirements.

  • Utilize methodologies for collecting, displaying, and interpreting data.

  • Apply proven approaches for continuously improving processes, including DMAIC problem solving, and Tollgate reviews.

Ref Intro-1a


Lean six sigma green belt training

Agenda


Administrative information

Administrative Information

  • Safety (room, building)

  • Breaks and lunch

  • Facilities (bathrooms, services)

  • Courtesy (mobile phones, blackberries etc)

  • ?

Ref Intro-2


Introductions activity

Introduce a colleague covering the following information:

Name

Work location

Job responsibilities

Experience prior to working at ING

Experience with Lean Six Sigma

Expectations of this workshop

Something interesting about you

Introductions Activity

Ref Intro-3


Ground rules

Ground Rules

  • Be on time

  • Follow an agenda

  • Listen constructively

  • Defer items to Parking Lot

  • Ask Questions

  • Have fun!


Lean six sigma green belt training

Have you completed the Pre-work?

Ref Intro-1b


Lean six sigma green belt training

Overview of

Lean Six Sigma


Ing strategy and lean six sigma

ING Strategy and Lean Six Sigma

Customer Centric

Economic Value

Lean Six Sigma

Improve Persistency

Reduce Operational Costs

Increase Sales

Improve Mix of Business

Reduce Risk and Economic Capital

Identify Critical Customer Requirements

Define Gaps to Customer Requirements

Establish Baseline Metrics

Execute Improvements to Close Gaps

RESULTS

Lean Six Sigma Is “How” to Achieve Strategic Objectives

Ref Overview-1


Ing strategy and lean six sigma1

Set the standard in helping our customers manage their financial future

Mission

Positioning Statement

ING is dedicated to deliver financial services

solutions valued by the customer

Brand Attributes

Delivers on

Promises

Customer- Centric

Is Easy to Deal with

Treats Me Fairly

ING Strategy and Lean Six Sigma


Executing strategy with lean six sigma

Executing Strategy with Lean Six Sigma

Strategy Deployment

  • Voice of Customer

  • Voice of Process

  • Voice of Business

  • Market Factors

  • Competition/ Benchmarks

  • SWOT

BusinessStrategic Objectives

BusinessLine Strategies

BusinessLineTactics

METRICS

METRICS

METRICS

PROJECTS

Review Process

METRICS

Ref Overview-2


Sources of lean six sigma projects

Sources of Lean Six Sigma Projects

Lean Six Sigma projects may be generated from a number of sources, examples include…

  • VOC – Improve timeliness, accuracy, satisfaction, control compliance risks, reduce fines

  • VOP – Reduce the gap between current performance and customer specifications

  • VOB – Increase sales, reduce expenses, improve productivity, includes VOE (Voice of the Employee) Increase employee retention, improve employee satisfaction

METRICS

Ref Overview-3a


Lean six sigma project selection

Lean Six Sigma Project Selection

Inputs

  • Voice of the customer

  • Voice of the business

  • Voice of process

Prioritize

Projects

Known

solution with

supporting data?

YES

Translate into project opportunities

  • Strategic Fit

  • Economic Value

  • Time/Effort

NO

Implement solution, follow lean six sigma principles

Process Not Capable – use DFSS methodology

Process Capable – use DMAIC methodology

Ref Overview-3b


Project prioritization matrix

More detailed approach than Pre-work

Project Prioritization Matrix

Ref Overview-4


Lean six sigma success factors

Business Process Framework

Customer & Market Network

Quantifiable Measures & Results

Committed Leadership

Strategy Integration

Full Time Six Sigma Leaders

Incentives & Accountability

Lean Six Sigma Success Factors

  • Establishing these factors provides the seeds of success.

  • They need to be integrated uniquely to fit each business.

  • They are all necessary for the best result.

  • The most powerful success factor is “committed leadership”

Ref Overview-5


Lean six sigma failure factors

Lean Six Sigma Failure Factors

  • Leaping to the fix – faulty assumptions; not data based

  • Serving the wrong customer – not focusing on the voice of the “next” customer

  • Selecting the wrong projects – not linked to strategy

  • Solution-caused problems – poor sequencing; stakeholder under-involvement; ineffective resource planning; absence of change management; no project closure

Adapted from Six Sigma’s Seven Deadly Sins by James P. Zimmerman and Dr. Jamie Weiss of Kepner Tregoe

Ref Overview-6


The evolution of lean six sigma

The Evolution of Lean Six Sigma

Today: American Express, JP Morgan, Merrill Lynch, Wells Fargo, B of A , Caterpillar Financial …..

The foundation for Lean Six Sigma has

been effectively applied in a wide variety of companies

worldwide

over many decades

Design for Six Sigma: GE

Six Sigma: AlliedSignal, GE

Six Sigma: Motorola

Reengineering: Michael Hammer

Quality Circles

1970: Zero Defects: Philip Crosby

Japanese Quality methods: Ishikawa, Taguchi

Applied Lean Concepts: Toyota Production System

Statistical methods for business: Juran, Figenbaum

Late 1940s; Statistical methods in Japan; W. Edwards Deming

Statistical Sampling; Walter A. Shewhart

1920 Time and motion studies; Frederick Taylor

Ref Overview-7


What is sigma

What is Sigma?

  • The Greek letter σ (sigma) is used in statistics to describe variation.

  • Sigma (σ) represents the standard deviation in a population.

  • Standard deviation is derived from calculating the average difference between all data points of a population and the average of that population.

Ref Overview-9a


Lean and six sigma thinking

Lean Thinking:

Customer focused

Identify waste

Improve process speed/cycle time

Specific speed tools – Value-add analysis; Kaizen events

Six Sigma Thinking:

Critical Customer Requirement (CCR) focused

Culture and infrastructure to sustain results

Focus on variation

Methodology driven – DMAIC, DFSS

Lean and Six Sigma Thinking

Lean Six Sigma - Blended to Optimize Results

Ref Overview-8


What is lean six sigma

What is Lean Six Sigma?

(cont’d.)

  • Measurement

    • Measures the variation and defect level in a process or product

    • Allows different processes to be compared

    • 3.4 defects per million opportunities

Ref Overview-9b


What is lean six sigma1

What is Lean Six Sigma?

(cont’d.)

  • Measurement

    • Measures the variation and defect level in a process or product

    • Allows different processes to be compared

    • 3.4 defects per million opportunities

  • Improvement Methodology

    • Customer-focused

    • Data and measurement-driven

    • Focused on reducing defect levels

    • Results-oriented

Ref Overview-9c


What is lean six sigma2

What is Lean Six Sigma?

(cont’d.)

  • Measurement

    • Measures the variation and defect level in a process or product

    • Allows different processes to be compared

    • 3.4 defects per million opportunities

  • Improvement Methodology

    • Customer-focused

    • Data and measurement-driven

    • Focused on reducing defect levels

    • Results-oriented

  • Catalyst for Organizational Change

    • Large-scale fundamental change in culture

    • Move to a data-driven, customer-centric mindset

Ref Overview-9d


Who is the customer

Who is the Customer?

  • External

    • Purchasers of products and services

    • Distributors

    • Regulatory entities

Ref Overview-10a


Who is the customer1

Who is the Customer?

(cont’d.)

  • External

    • Purchasers of products and services

    • Distributors

    • Regulatory entities

  • Internal

    • Other departments

    • Management / Shareholders

Ref Overview-10b


Who is the customer2

Who is the Customer?

  • External

    • Purchasers of products and services

    • Distributors

    • Regulatory entities

  • Internal

    • Other departments

    • Management / Shareholders

  • Voice of Customer(VOC)

    • Information that can be collected from external/internal customers

Ref Overview-10


What is variation

What is Variation?

Process

Average

Customer

Requirement

  • Variation is the normal, measured difference in process outputs

  • Many process measurements focus on averages… averages don’t tell the whole story

Same Process

Average

15

25

30

20

5

1

10

Days to close loan

Ref Overview-11a


What is variation1

What is Variation?

(cont’d.)

Process

Average

Customer

Requirement

  • Knowledge of process variation and defect levels provides more insight into process performance

  • Less variation reduces costs, increases reliability, and customer satisfaction

Same Process

Average

Much Different

Customer Defects

15

25

30

20

5

1

10

Days to close loan

Ref Overview-11b


Sources of variation

Process Outputs

Sources of Variation

Market

Critical Customer Requirements

Inputs

Process Activities

Suppliers

Defects

In-process variation may lead to defects in process output

Variation occurs in both process inputs and process activities – people, methods, materials, equipment, and environment

The output (Y) is determined by performance of inputs and processes (x)…. Y=f(x)

Ref Overview-12


Goal of lean six sigma

Using Lean Six Sigma, we work to reduce variation and permanently move product or service outputs inside customer requirements. (Curve A to B)

Goal of Lean Six Sigma

Critical Customer Requirement (CCR)

B

A

Defects: Process output that does not meet Customer Requirements

Product or Service Output

Ref Overview-13


Improve process yield

Improve Process Yield

We use Lean Six Sigma to improve process yield. Process Yield is the proportion of process output that meets customer requirements.

Critical Customer Requirement (CCR)

Proportion of process output (B) that meets customer requirements = 100%

B

A

Proportion of process output (A) that meets customer requirements ≈ 70%

Produce or Service Output

Ref Overview-14


Lean six sigma green belt training

The ‘Hidden’ Factory (Lean Thinking)

.

  • The hidden factory corresponds to the resources that today are directed at creating waste, while they could be focused on generating high quality products and services.

  • For the typical organization, about 25% to 40% of all work activities consists of hunting for mistakes, unnecessary audits, rework, duplication of efforts and the performance of unneeded tasks.


Rolled throughput yield

Rolled Throughput Yield

Rolled Throughput Yield (RTY)represents a combined yield for each step or sub-process.

Obtain RTY by multiplying the yield for each step or sub-process.

STEP 1

STEP 1

STEP 1

STEP 2

STEP 2

STEP 2

STEP 3

STEP 3

STEP 3

STEP 4

STEP 4

Ref Overview-15a


Lean six sigma green belt training

Rolled Throughput Yield (cont’d.)

Loan

Documentation

Yield = 95%

Loan

Application

Yield = 91%

Loan

Processing

Yield = 96%

Loan

Review

Yield = 96%

Rolled throughput Yield =

0.95 x 0.91 x 0.96 x 0.96 x 0.97 = 77.2%

Loan

Servicing

Yield = 97%


Lean six sigma green belt training

Rolled Throughput Yield (cont’d.)

(cont’d.)

  • RTY can be calculated on either the number of items that make it through defect-free the “first time right” or on the final number of items that are defect-free once errors are corrected

  • In most situations, it makes sense to base sigma calculations on First Time Right

Process Step 1

Correct?

No

Errors Reworked

First Time Right =

Number of items that make it through error-free without corrections

Final Yield =

Number of items that are defect-free AFTER errors are corrected

Ref Overview-16


Rolled throughput yield activity

Rolled-Throughput-Yield - Activity

  • Appoint a facilitator in your project team to manage the time and the discussion.

  • Map your selected improvement process high-level (e.g. 6-8 process steps) on a flip chart

  • Make an estimate of the yield rate at each individual process step

    • You may have to first consider the criteria for defects and what the definition is for a defect free step! This may include establishing a target level for a step (e.g. this step must be finished in 2 hours)

  • Calculate the RTY % of the overall process

  • What is your conclusion?

  • Be ready to share your results in a short presentation.


  • Process sigma is a great metric

    Process Sigma is a Great Metric

    • Focus is on defects, even one is a failure for a customer

    • Universal measure that can be applied to any product or service

    • Difficult to motivate people to improve quality from 99% to 99.9997%

    Distribution shifted +/- 1.5 sigma

    DPMO = Defects per million opportunities

    Sigma Improvement Requires Enormous Defect Reduction

    Ref Overview-17


    Is six sigma performance necessary

    Is Six Sigma Performance Necessary?

    flight arrivals (all carriers)

    IRS answers 21% of calls

    Overnight delivery of 1st Class Mail

    Correct legal advice from IRS

    Soft drink quality in N. America

    1000000

    On-time

    Mishandled baggage (all carriers)

    Restaurant bills

    Payroll processing

    100000

    Wire transfers

    10000

    1000

    100

    DPMO

    Domestic airline fatality rate

    10

    (0.43ppm)

    1

    0

    1

    2

    3

    4

    5

    6

    7

    Process Sigma

    Is the Airline Industry Focused on the Right Processes?

    Ref Overview-18a


    Is six sigma performance necessary1

    Is Six Sigma Performance Necessary?

    (cont’d.)

    At 3σ, or 93% Yield, there would be:

    • >90% of computers would not function

    • 10.8 million mishandled healthcare claims annually

    • 54,000 checks lost each night by a single large bank

    • 270 million erroneous credit card transactions each year in the US

    Source: The Six Sigma Handbook 2003, page 61, T. Pyzdek

    Ref Overview-18c


    Is six sigma performance necessary2

    Is Six Sigma Performance Necessary?

    (cont’d.)

    At 4.5 σ, or 99.9% Yield, there would be:

    • At least 20,000 wrong drug prescriptions per year

    • Unsafe drinking water almost 1 hour each month

    • No telephone service for nearly 10 minutes each week

    • Two short or long landings at O’Hare airport each day

    • 25,000 lost or incorrectly delivered articles of mail per hour

    • Over 9,000 wrong felony convictions per year

    • 50 Newborn babies dropped at birth by doctors each day

    Ref Overview-18b


    Setting sigma performance targets

    Setting Sigma Performance Targets

    • If the current Process Sigma is greater than 3.0, a two times defect improvement goal is set, e.g., improve from 1,000 DPMO to 500.

    • If the current Process Sigma is 2.9 or less, a ten times defect improvement goal is established, e.g., 300,000 DPMO to 30,000.

    Ref Overview-19


    The cost of defects

    The Cost of Defects

    Activity:

    Brainstorm some costs that you incur as a result of defects.

    Ref Overview-20


    Cost of defects examples

    Cost of Defects - Examples

    • Hidden Factories

      • Re-work of defects in processes or products

      • Complex workarounds

      • Excessive phone calls, emails, faxes and other correspondence as a result of poor performance

    • Inspections and Audits

      • Back-end audits and approvals

      • Multiple approval steps

    • Lost Sales and Market Share

      • Market product requirements not met

      • Service or delivery requirements not met

    • Fines and Other Penalties

    Ref Overview-21


    Lean six sigma business system

    Lean Six Sigma Business System

    • MTP Planning– the steering mechanism of the Business System

    • Process Management–documenting and measuring process performance

    • Problem Solving – using lean, DMAIC, DFSS, and other methodologies to close process performance gaps

    • People – recognizing and harnessing the exceptional potential of employees, suppliers, customers, and experts

    Ref Overview-22


    Dmaic vs dfss

    Define Business

    Improvement Opportunity

    Does Process

    Currently Exist?

    No

    Yes

    Measure Current Performance

    Measure Market Requirements

    Analyze Root Cause

    of Current Performance

    Analyze Design Alternatives

    Develop New Process

    Is Current Process

    Capable of Meeting

    Customer Reqts?

    No

    Yes

    Control Performance

    Improve Performance

    DMAIC vs. DFSS

    Lean Six Sigma DMAIC

    Lean Six Sigma DFSS

    Ref Overview-23


    Dmaic vs dfss1

    DMAIC vs. DFSS

    (cont’d.)

    D M A I C

    D F S S

    • Define customer requirements and project goals

    • Measure the process to determine current performance

    • Analyze to identify and validate root causes of defects

    • Improve process by eliminating causes of defects

    • Control and monitor on-going process performance

    • Define customer requirements and project goals

    • Measure customer needs and specifications

    • Analyze design options to meet customer requirements

    • Design a detailed process that meets customer requirements

    • Verify that current and future process meets customer requirements

    Define

    Measure

    Analyze

    Design

    Improve

    Control

    Verify

    Ref Overview-24a


    Funneling the focus of process work

    Funneling the Focus of Process Work

    Variables

    Ref Overview-24b


    Project components define

    Project Components: DEFINE

    Overall objective:Clarify the Improvement Opportunity

    Identify Business

    Opportunity/Problem

    Identify Outcome Metric(s) and Target

    Establish Roles & Stakeholder Expectations

    Clarify Project Boundaries, Financial Benefit, and Preliminary Problem Statement

    Charter & Schedule Project,

    Select Resources

    Identify Critical Customer Requirements (CCRs)

    To Measure Step

    Ref Overview-25a


    Project components measure

    Data Collection Plan

    Project ________________________

    A

    B

    C

    E

    What questions do you want to answer?

    Mary

    Data

    Operational Definition and Procedures

    What

    Measure

    How

    Related

    How/where

    Sampling

    John

    1

    type/ Data

    Measured

    conditions to

    recorded (attach

    notes

    2

    type

    record

    form)

    Sally

    Jim

    Frequency Plots

    Pareto Chart

    DPMO_____

    Yield _____

    Sigma _____

    Goal _____

    UCL

    UCL

    LCL

    LCL

    F

    F

    2

    F

    F

    1

    3

    4

    Run Chart

    Project Components: MEASURE

    Overall objective:Narrow the improvement opportunity to a specific problem statement.

    Plot Outcome Defect Data

    Stratify Data

    Revise Problem Statement

    From Define Step

    Create Detailed

    Process Map

    Calculate Performance

    Collect Upstream Data

    Check Sheet

    Develop Data Collection Plan

    Understand Variation

    Assess Financial Impact (COPQ)

    Control Chart

    To Analyze Step

    Ref Overview-25b


    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 Overview-25c


    Project components improve

    “After”

    Occurrence

    Occurrence

    Severity

    Item or

    Potential

    Potential

    Responsibility

    Detection

    Severity

    Detection

    RPN

    Process

    Failure

    Effect (s)

    Potential

    Current

    Recommended

    and

    RPN

    Step

    Mode

    of Failure

    Cause(s)

    Controls

    Action

    Target Date

    Action Taken

    Ease to Implement

    Effectiveness

    Root Causes

    Solutions

    Specific Tasks

    Total Score

    Problem

    Action

    Cost

    Total Risk Priority Number =

    “After”

    Risk Priority Number =

    Before

    Before

    After

    Good

    3.6 Process Sigma

    3.2 Process Sigma

    :

    Problem Statement ________________________________________

    Solution (s) / Specific Task (s) ____________________________

    IMPROVE changes

    Cost/Benefit Analysis

    implemented

    Before

    After

    Task / Project

    Status

    Who

    Due Date

    }

    Improvement

    1.3 s

    3.1 s

    Time

    100%

    100%

    Cost

    }

    75%

    75%

    Benefit

    Improvement

    50%

    50%

    25%

    25%

    Approval from Finance

    A2

    A1

    A3

    A4

    A1

    A2

    A3

    A4

    Project Components: IMPROVE

    Overall objective: To identify/implement countermeasures that will eliminate or reduce the confirmed root causes.

    From Analyze Step

    Cost/Benefit Analysis

    Develop Action Plan

    Quantify Pilot Results

    Identify Breakthrough Ideas

    Updated Pareto Chart

    Lean Thinking

    Select Countermeasures

    Risk Analysis

    Develop Pilot Plan

    Update Metrics

    Selection Matrix

    FMEA

    Gantt Chart

    To Control Step

    Ref Overview-25d


    Project components control

    Train

    “Y” Outcome Metrics

    Good

    Cost/Benefit Analysis

    Approval from Finance

    “X” Upstream Metrics

    UCL

    UCL

    LCL

    LCL

    Project Components: CONTROL

    Overall objective: To maintain the gains.

    From Improve Step

    Communicate Results

    Close Project

    Standardize the Process

    StandardPractices

    Celebrate!

    Process Control Plan

    Ref Overview-25e


    Lean six sigma involves cultural shift

    Lean Six Sigma Involves Cultural Shift

    • Owns vision,

    • Leads change

    • Provide project-specific support

    • SMEs (subject matter experts) provide support as needed

    • Directs, integrates project w/in business

    • Creates business deployment plan

    Executive

    Champion

    Project Team Members / SME

    Project

    Sponsor

    • Understand vision

    • Apply concepts to their joband work area

    All Employees

    Green Belts

    Process Owner

    • Help Black Belts as team member

    • Experienced Green Belts lead some projects

    Black Belts

    • Supports Black Belts and Local Champion

    • Sustains and leverage gains

    Master Black Belts

    • Full-time

    • Facilitate problem solving

    • Train and coach Project Teams

    • Full-time

    • Train and coach Black Belts and Six Sigma Green Belts

    Ref Overview-26


    Lean six sigma roles responsibilities

    Lean Six Sigma Roles/Responsibilities

    Executive Champion

    • Creates the vision and aligns Lean Six Sigma with business strategy

    • Defines strategic goals and measures

    • Establishes business targets

    • Promotes Lean Six Sigma tools and methodology

    • Helps to remove barriers to success

    • Reviews project and team progress

    • Attends tollgates during initial roll-out

    Ref Overview-27a


    Lean six sigma roles responsibilities1

    Lean Six Sigma Roles/Responsibilities

    (cont’d.)

    Project Sponsor

    • Positions project within business environment

    • Identifies process owner of improvement projects

    • Develops preliminary project charter

    • Defines improvement areas, goals and financial targets Identifies key SME resources for project team

    • Positions and kicks off improvement project

    • Reviews project and team progress

    • Helps gain organizational support and removes barriers

    • Helps gain organizational support for solution

    • Recognizes team and contributing members

    • Ensures access to data from existing databases

    • Establishes and certifies savings

    Ref Overview-27b


    Lean six sigma roles responsibilities2

    Lean Six Sigma Roles/Responsibilities

    (cont’d.)

    Process Owner

    • Participates in tollgates

    • Identifies resources and team members for project team

    • Ensures sufficient implementation resources

    • Ensures organization support of solution deployment

    • Evaluates sufficiency of project “controls” designed to hold gains upon solution implementation

    • Owns process, Responsible for sustaining project gains

    • Removes barriers for the team

    Ref Overview-28a


    Lean six sigma roles responsibilities3

    Lean Six Sigma Roles/Responsibilities

    (cont’d.)

    Master Black Belt

    • Expert on Six Sigma tools and concepts

    • Trains Black Belts and ensures they are properly applying the methodology and tools

    • Coaches and mentors Black Belts and Green Belts

    • Works high-level projects, many of which are across divisions or business units

    • Assists Champions and Process Owners with project selection, project management and Lean Six Sigma deployment and administration

    • Removes barriers for the team

    Ref Overview-28b


    Lean six sigma roles responsibilities4

    Lean Six Sigma Roles/Responsibilities

    (cont’d.)

    Black Belt

    • Responsible for leading, executing, and completing Lean Six Sigma projects

    • Teaches team members the Lean Six Sigma methodology and tools

    • Assists in identifying project opportunities and refining project details and scope

    • Reports progress to MBB, Process Owners and Champions

    • Mentors Green Belts and team members

    Ref Overview-29a


    Lean six sigma roles responsibilities5

    Lean Six Sigma Roles/Responsibilities

    (cont’d.)

    GreenBelt

    • Assists Black Belt as team member

    • Can lead smaller scope projects

    • Reports progress to MBB or BB, Process Owners and Sponsors

      Project Team Members/Subject Matter Experts (SMEs)

    • Provide process knowledge and understanding

    • Participate in identifying and gathering data

    • Identify gaps

    • Help analyze data and identify solutions

    Ref Overview-29b


    What is a tollgate review

    What is a Tollgate Review?

    • A milestone that the project must pass through at each step (D-M-A-I-C)

    • Formal presentation(s) followed by questions and discussion

      • Assess status of project – project control

      • Review activities and accomplishments prior to proceeding to the next phase – alignment with plan

      • Revisit Project Charter assumptions

    • A tollgate review ends with a Go/No-Go decision

    Tollgate reviews ensure projects deliver desired results.

    Ref Overview-30a


    Who attends tollgate reviews

    Black Belt/Green Belt

    Project Sponsor

    Process Owner

    Project Team (Key Members)

    Quality Champion

    Senior Mgmt. Stakeholders

    Other Stakeholders

    Master Black Belt

    Required

    Required

    Required

    Required

    Recommended

    Recommended

    As Appropriate

    Required

    Who Attends Tollgate Reviews?

    Ref Overview-30b


    Why are tollgate reviews critical

    Brainstorm reasons why Tollgate Reviews are important.

    Why Are Tollgate Reviews Critical?

    2. At what intervals should Tollgate Reviews be scheduled? Why?

    Discuss ideas

    Ref Overview-31


    Who is using lean six sigma

    Who is Using Lean Six Sigma?

    Financial Services:

    Manufacturing:

    Services:

    Companies across all regions and industries


    Lean six sigma green belt training

    UNIT 1

    Define


    Define learning objectives

    Define – Learning Objectives

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

    • Describe actions for launching a Lean Six Sigma project.

    • Identify project stakeholders and expectations.

    • Clarify project scope.

    • Define Critical Customer Requirements (CCRs) to measure a process performance metric and establish a target for improvement.

    • Develop a project charter and schedule.

    Ref Unit 1-1


    Define major activities

    Define– Major Activities

    DEFINE

    MEASURE

    ANALYZE

    IMPROVE

    CONTROL

    Develop Project Charter and Schedule

    Launch

    the

    Project

    Identify Stakeholder Expectations

    Clarify

    Project

    Scope

    Measure Customer CCRs

    Overall objective:Clarify the Improvement Opportunity

    Ref Unit 1-2a


    Define key deliverables commonly used tools

    Stakeholder Analysis

    Preliminary Financial Benefit

    Preliminary Problem Statement

    Project CCR’s

    Process Outcome Metric/Target

    Team Charter

    Risk Analysis

    Project Schedule

    Surveys

    Focus Groups

    Interviews

    Stakeholder Analysis

    SIPOC

    In and Out of Scope Analysis

    Risk Analysis

    Pert Chart

    Define – Key Deliverables/Commonly Used Tools

    Key Deliverables:

    Commonly Used Tools:

    Ref Unit 1-2b


    Define major activities1

    Define – Major Activities

    DEFINE

    MEASURE

    ANALYZE

    IMPROVE

    CONTROL

    Develop Project Charter and Schedule

    Launch

    the

    Project

    Identify Stakeholder Expectations

    Clarify

    Project

    Scope

    Measure Customer CCRs

    Ref Unit 1-3a


    Lead team identifies lean six sigma projects

    Lead Team Identifies Lean Six Sigma Projects

    Analyze

    current operations, competitive environment,

    §

    customer input, employee surveys, benchmark information.

    Identify

    priorities that align with MTP, and that

    §

    PLAN

    address local priorities.

    Establish

    metrics with targets for improvement to

    §

    measure performance.

    Launch

    projects that focus on priorities.

    §

    DEPLOY

    Coordinate

    activities in an action plan that defines who

    §

    will be doing what by when.

    Monitor

    progress during Tollgates.

    §

    Offer Feedback,

    both positive and constructive, to keep

    §

    REVI

    EW

    people informed.

    Share Thoughts, Feelings and Rationale

    so others

    §

    can learn from a leader’s knowledge and experience.

    Inform

    Senior Management of progress.

    §

    REPORT

    Recommend

    improvements.

    §

    Continuously improve

    both results and the approach

    §

    GROW

    taken to achieve them.

    Ref Unit 1-3b


    Lead team identifies lean six sigma projects1

    Management Action

    Individual Assignment

    Form a Project Team

    Process Management

    DMAIC

    DFSS

    Lead Team Identifies Lean Six Sigma Projects

    (cont’d.)

    Approach Options

    Methodology Options

    Ref Unit 1-4a


    Dmaic for existing process improvement

    DMAIC for Existing Process Improvement

    • Control the process “maintain the gains & transition to full implementation”

    • Define the project’s purpose, scope and major milestones “clarify the opportunity”

    5

    1

    CONTROL

    DEFINE

    • Improve the process “develop & pilot solutions”

    • Measure the current process performance “narrow the problem area”

    IMPROVE

    MEASURE

    4

    2

    ANALYZE

    3

    • Analyze potential root causes “confirm with data”

    Ref Unit1-4b


    Lead team fills lean six sigma roles

    Lead Team Fills Lean Six Sigma Roles

    (cont’d.)

    Project Roles

    • Executive Champion

    • Project Sponsor

    • Process Owner

    • Master BlackBelt

    • BlackBelt

    • GreenBelt

    • SMEs

    Ref Unit1-5


    Define major activities2

    Define – Major Activities

    Develop Project Charter and Schedule

    Launch

    the

    Project

    Identify Stakeholder Expectations

    Clarify

    Project

    Scope

    Measure Customer CCRs

    A stakeholder is someone with an interest in, and/or who may be effected by outcomes of the project.

    Ref Unit 1-6a


    Stakeholder expectations

    Stakeholder Expectations

    The Project Sponsor communicates:

    • The need for change

    • Desired outcomes

    • Where performance is now and targets

    • How performance will be measured

    • Level of urgency

    • Related issues to be addressed

    Ref Unit 1-6b


    Stakeholder expectations1

    Stakeholder Expectations

    (cont’d.)

    Project

    Sponsor

    Process

    Lead

    Owner

    Team

    Your team's expections of others - Other's expectations of your team -

    Other

    Project

    Team

    Internal/External

    Project

    Customers

    Teams

    Internal/External

    SMEs

    Suppliers

    Other

    Employees

    Ref Unit 1-7


    Stakeholder expectations2

    Stakeholder Expectations

    (cont’d.)

    What stakeholders typically expect:

    • On-time delivery

    • Resource management

    • Accurate cost forecast and control

    • Risk Management / Security

    • Measurable results / ROI

    • Easy to understand /implement

    Ref Unit1-8a


    Stakeholder expectations3

    Stakeholder Expectations

    (cont’d.)

    What Project Teams typically expect :

    • Clear goals and deliverables

    • Resource availability

    • Time to work on the project

    • Clear idea as to how performance will be evaluated

    • Positive and constructive feedback

    • Support, as needed

    Ref Unit1-8b


    Activity

    Activity

    Expectations

    Ref Unit 1-9


    Define major activities3

    Define – Major Activities

    Develop Project Charter and Schedule

    Launch

    the

    Project

    Identify Stakeholder Expectations

    Clarify

    Project

    Scope

    Measure Customer CCRs

    Ref Unit 1-10a


    Clarify project scope

    Clarify Project Scope

    The scope of a project is the sum of activities that a team is committed to complete in a given scheduled timeframe.

    Begin thinking about scope using the high-level process map you developed in the PreWork…

    Sell Policy

    Review Application

    Underwrite

    Policy

    Issue Policy

    Ref Unit 1-10b


    Clarify project scope1

    Clarify Project Scope

    (cont’d.)

    In and Out of Scope Analysis

    Ref Unit 1-11


    Clarify project scope2

    Clarify Project Scope

    (cont’d.)

    Preliminary Problem Statement

    • What is Wrong – state the effect, not why it is wrong, and not the solutions

    • Measurable – how often, how much, and when

    • Specific – avoid broad categories, e.g., poor morale; low customer satisfaction

    • How Customers Are Effected – areas of dissatisfaction

    • Objective – does not imply blame or cause

    • What Is and What Should Be – gap between customer expectations and performance

    Ref Unit 1-12


    Clarify project scope3

    Clarify Project Scope

    (cont’d.)

    Calculate Financial Benefit

    • An initial financial benefit of the project is developed based on the project scope and preliminary problem statement.

    • When determining Financial Impact, calculate annualized benefits.

    • Look for benefits that may accrue from reducing or eliminating defects in the process.

    Ref Unit 1-13


    Activity1

    Activity

    Clarify Project Scope

    Ref Unit 1-14


    Define major activities4

    Define – Major Activities

    Develop Project Charter and Schedule

    Measure Customer CCRs

    Launch

    the

    Project

    Identify Stakeholder Expectations

    Clarify

    Project

    Scope

    Ref Unit 1-15a


    Customer requirements

    Customer Requirements

    Do you remember from the PreWork…

    • What are typical customer requirements?

    • What are customer requirements categories?

    Requirement Categories:

    Ref Unit 1-15b


    Must haves vs like to have

    Must Haves vs. Like to Have

    Separate Must Haves from Like to Haves…

    • Ask questions of internal customers

    • Negotiate for win/win reasonable requirements

    • Agree on specific, measurable, attainable and trackable performance levels

    Ref Unit 1-16


    Who caught the fish

    B

    D

    E

    A

    C

    Who Caught The Fish?


    Sipoc analysis

    Products

    Products

    Suppliers

    Customers

    Services

    Services

    SIPOC Analysis

    Inputs

    Outputs

    Process

    Ref Unit1-17


    80 20 rule

    80/20 Rule

    Use the 80/20 rule to identify the 20% of customer requirements that are most critical.

    Review your SIPOC Analysis while considering the following questions:

    • Who is the “next customer” – the direct recipient of our process output?

    • Who are the most critical customers of our process (it may only be one customer)?

    • Who would be most impacted if our process stopped producing an output?

    Ref Unit 1-18


    Activity2

    Activity

    SIPOC Analysis

    Ref Unit 1-19


    Critical customer requirements ccr

    Critical Customer Requirements (CCR)

    A CCR is a description of a product/ service attribute or characteristic that influences a customer’s requirement.

    To identify CCRs for your process…

    • What attribute of my product/service does the next customer (my key customer) most care about?

    • What attribute of my product/service does the business most care about?

    • Work with your Project Sponsor to rectify any conflicts.

    Ref Unit 1-20


    Measure ccrs with outcome metrics

    Measure CCRs with Outcome Metrics

    • Outcome metrics are “after the fact” “past tense” measures

    • They always focus on defects

    • They represent the proportion of total process output that is not satisfying the customer requirement over a period of time

    • A typical process has 1-3 outcome metrics

    Ref Unit 1-21


    Tips for defining outcome metrics

    Tips for Defining Outcome Metrics

    • Customer Oriented

    • Cost Effective

    • Controllable

    • Calculable

    • Consistent

    Ref Unit 1-22


    System of metrics

    Process A

    Process A

    Region 1

    Process B

    Process B

    Process C

    Process C

    Region 2

    Business Line

    Process D

    Process D

    Process E

    Process E

    Region 3

    Process F

    Process F

    System of Metrics

    An outcome metric for one process should link to the next higher-level process – see example on next slide

    Ref Unit 1-23


    Setting outcome metric targets

    Setting Outcome Metric Targets

    Sources of Targets

    • Critical customer requirement data

    • Specifications

    • Past performance trends

    • Analysis of potential for process improvement (Process Sigma)

    • Benchmark levels of performance attained by competitors, or best in class in your organization

    Ref Unit 1-24a


    Setting outcome metric targets1

    Setting Outcome Metric Targets

    (cont’d.)

    Tips for Setting Targets

    • Use numbers to clarify desired level of performance

    • Be prepared to change target

    • Establish a time frame for achieving target with intermediate targets

    • With multiple process outputs, set targets for each to realize the overall product or service target

    Ref Unit 1-24b


    Valid ccrs

    Valid CCRs

    Note: “On time” means within 5 working days beginning the day after the policy is received from agent.

    Ref Unit 1-25


    Valid ccrs1

    Valid CCRs

    Promise what you can deliver.

    Ref Unit 1-26


    Activity3

    Activity

    Define Valid CCRs

    Ref Unit1-27


    Define major activities5

    Define – Major Activities

    Develop Project Charter and Schedule

    Launch

    the

    Project

    Identify Stakeholder Expectations

    Clarify

    Project

    Scope

    Measure Customer CCRs

    Ref Unit 1-28a


    Project charter example

    Project Charter Example

    Ref Unit1-28b


    Project charter

    Project Charter

    Elements of a Project Charter

    • Business Opportunity

    • Business Benefits/Customer Benefits

    • Key Deliverables

    • Metric /Target

    • Process Scope

    • Project Schedule and Resources

    Ref Unit 1-29


    Identify and mitigate risks

    Identify and Mitigate Risks

    • People

    • Technology

    • Resources

    • Cost

    • Schedule

    • Environment

    Can you think of others?

    Ref Unit 1-30


    Identify and mitigate risks1

    Identify and Mitigate Risks

    (cont’d.)

    Ref Unit 1-31


    Project schedule resources

    Project Schedule & Resources

    • Serves as a record of team participation

    • Tracks the number and duration of meetings

    • Clarifies a schedule for completing each of the DMAIC steps

    • Facilitates comparison of the planned schedule with actual time required

    • Includes actions to reduce/mitigate identified risks

    Ref Unit 1-32


    Project schedule resources1

    Project Schedule & Resources

    (cont’d.)

    Project Schedule Worksheet

    Project Theme

    Team Name

    Sponsor

    Team Information

    Team Members/ % Dedicated

    Date

    Attd.

    Hours

    Date

    Attd.

    Hours

    Date

    Attd.

    Hours

    Date

    Attd.

    Hours

    Meeting Record

    Ref Unit 1-33a


    Project schedule resources2

    Schedule:

    Planned

    Actual

    Project Close

    Week/Month

    Define

    Measure

    Analyze

    Improve

    Control

    Project Schedule & Resources

    (cont’d.)

    1

    2

    3

    4

    1

    2

    3

    4

    1

    2

    3

    4

    1

    2

    10

    10

    10

    10

    11

    11

    11

    11

    12

    12

    12

    12

    1

    1

    Ref Unit 1-33b


    Activity4

    Activity

    Develop Project Charter, Schedule and Resource Requirements

    Ref Unit 1-35


    Project tollgates

    Project Tollgates

    A tollgate occurs at the end of each step in the DMAIC methodology with the purpose of...

    • Monitor team progress

    • Identify additional resource needs

    • Maintain focus

    • Assist in dealing with sensitive issues

    • Ensure coordination among all teams

    • Share best practices

    • Remove organizational barriers

    • “See” the business

    • Check for consistency

    • Reward and recognize

    Ref Unit 1-34a


    Define project tollgate

    Define Project Tollgate

    Prepare to answer the following questions during a tollgate review at the end of the Define Step:

    • What is the problem or opportunity?

    • Why is this project important to the business?

    • Who is the project Sponsor

    • Does the Project Charter address key stakeholder expectations?

    • When does the Project Schedule call for the project to be completed?

    • What identified risks most threaten the project?

    • Who is working on this project? Why?

    • How does the outcome metric measure performance against CCRs?

    • How were targets established for each metric?

    Ref Unit 1-34b


    Unit summary

    Unit Summary

    Having completed this unit, here are some questions you should be able to answer:

    • What actions are involved in launching a Lean Six Sigma project?

    • Who are typical project stakeholders? What do they typically expect from a project?

    • What is a CCR?

    • What metric is used to measure overall process performance in satisfying CCRs?

    • How are the Project Charter and Schedule helpful?

    Ref Unit 1-38a


    Project components define1

    Project Components: DEFINE

    Overall objective:Clarify the Improvement Opportunity

    Identify Business

    Opportunity/Problem

    Identify Outcome Metric(s) and Target

    Establish Roles & Stakeholder Expectations

    Clarify Project Boundaries, Financial Benefit, and Preliminary Problem Statement

    Charter & Schedule Project,

    Select Resources

    Identify Critical Customer Requirements (CCRs)

    To Measure Step

    Ref Unit 1-38b


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