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1
LSSG Green Belt Training
Control: How do we make it happen at a controlled speed?
2
DMAIC Six Sigma - Control
Implement Controls Determine process capability,
implement controls to ensure continuance; assign process ownership and manage organizational change
Standardize Create standard operating
procedures; create and implement training programs; document project
Evaluate Benefit Calculate the profit of the project
and identify opportunities for replication
Measure
Control
Analyze
Improve
Define
3
Agenda for Control
1. Standardization
2. Financial Benefit
3. Change Management
4. Process Monitoring
5. Process Capability
6. Response Plan
7. Closure
4
Standardization and Documentation
Role of SOP
To create uniformity, consistency and reliability, to reduce errors; to support training needs
Steps necessary to create SOPs:
Purpose and frequency of task Who will perform the task? The steps involved Corrective actions if performed incorrectly Timing for updates and revisions
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Benefits of Standard Work
Allows for Monitoring and Control
Reduces Process Variation
Provides Input for ISO9000 Certification Document what you do, and then
do what you have documented!
Helps Maintain the Gains from Improvement Projects
SOP Link: osg.ivdgl.org/.../ Operations/CriticalUpdateSOP
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Estimating Financial Benefits
Benefit Estimation At start and end Decide computation
method early Conservative and
defendable Time value of money
Benefits Issues Projection for 1 to 2
years only Hard and soft benefits
Certified by Finance Dept.
Treat this subject with great care!
-15
-10
-5
0
5
10
15
20
25
30
35
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35
Months
Low Estimate
High Estimate
Cash Flow
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Estimating Benefits
Case Study #1: Improvement, or Not?!
Prior to the implementation of an improvement project, the mean number of defects was 80 per week, and the range of defects was 40 to 120. The improvement project yielded a 25% improvement in the defect rate, but no change in the range.
The team reported the improvement to management. However, no change was observed by the customer.
Why Not?
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Estimating Benefits
Case Study #2: Estimating Future Benefits
An improvement project yielded an estimated $100,000 per year. The team reported a project benefit of $500,000, as they believed that the project’s benefit would last for five years.
What is your opinion?
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Estimating Benefits
Case Study #3: Estimating Future Benefits
An improvement project yielded an estimated $50,000 per year, based on a calculation that one less person would be needed for a task, once the new improved process is implemented. The CFO said that she would only agree to certify this benefit if the affected department would reduce their salary budget by $50,000 for the next year.
What is your opinion?
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Change Management
Employee Skill
Motivation
Process Ownership
User Acceptance
Process Needs
Implementation Plan
Management Signoff
Rollout
Validate Process
Others Training Materials and Plans
New Equipment
Space Requirements/Layout Changes
“People Side of Change” Presentation: http://www.purdue.edu/hr/ppt/APSACHadley.ppt#1
CURRENT STATE
Preferred state
Resistance to change
TRANSITION STATE
Anxiety and stress
Significant dislike
FUTURE STATE
Unknown
Undesired
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Monitor
Implement Visual Controls Monitor Metrics Control Charting Process Capability Analysis Periodic Reviews Audit Controls
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Choosing the Right Control Chart
Data Type
AttributeContinuous
Count
P-Chart(% Defectives)
U-Chart (# of Defects/Unit,
or DPU)
I-MR (or X-MR) Chart (n = 1)
X Bar-R Chart(n = 2 to 5)
X Bar-S Chart(n>6)
Note: The NP Chart and C Chart are alternatives to the P and U Charts, respectively, but can only be used for constant sample sizes.
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Rev # Date Change Log – Describe Revisions By Apppr
-Name-Numerator &
Denominator- Specification
-Name-Numerator &
Denominator or Description
Indicator Chart Type
“Physical” Item to Check
When to Check
Who Performs Check
Recovery Action
-Indicator Formula
-Procedures
-Comments
Y1 = % of Itineraries with a Policy Violation
Y2 = % of Inaccurate Itineraries
Y3 = % of Expense Payments not paid within 15 days of Post
X1 = % of Lowest Airfare
X2 = % of 7 day advance tickets
X3 = Count of Ticket Problems
X4 = Time from Post to Submit
X5 = Time in Days from Submit to Approve
X6 = Time in Days from Approve to Pay (Client)
X7 = Time in Days from Post to Pay (AMEX)
P chart
P chart
U chart
I-MR
I-MR
I-MR
I-MR
Travel Agency Report
Travel Agency Report
Travel AgencyReport
Activity Report
Activity Report
Activity Report
Activity Report
Weekly
Weekly
Weekly
Weekly
Weekly
Weekly
Weekly
Connie
Connie
Connie
Tim
Tim
Tim
Tim
Consult with Group
Consult with Group
Consult with Travel Agency
Consult with Group
Consult with Group
P&CMS process may need to be measured.
Process MapOutcome
Indicators (Ys)
Upstream Indicators
(Xs)Capturing Data
Misc. Information
Process Name:Travel Management
Primary Customer of Process: Business Travelers
Customer’s CTQs:
Accuracy
Timeliness
Outcome Indicators (Ys):% of Itineraries with a Policy Violation
% of Inaccurate Itineraries
% of Expenses not Reimbursed within 15 days of post
Process Management Control System
Position
Step/Time
Traveler
Travel Agent
No
Yes
Yes
No
Yes
No
Yes
No
Yes
No
Yes
18Receive TravelRequirements
19QC trip
1Travel Need
10Select Travel
Planner
44Send Email of
Itinerary
20Book Airfare
8Call Travel #
40Problem
Acknowledgedwith Traveler
26Select and
Confirm Hotel
a
Problem w/ Itinerary?
22View Preferred
Hotels
FlightRequired?
2Use On-line
tool
14Lowest Airfare
Selected?
15Enter
ReasonCode
41Problem
resolved within72 hrs?
29Select Hertz or
National
32Submit and
ConfirmItinerary
a
42Client Notified
ProblemResolved
A
b
b
Arr
an
ge
Tra
vel
14
Response Plan
Mistake Proof Identify Gaps Develop Action Plans Implement Dashboard Triggers Monitor Employee Suggestions Foster Continuous Improvement
15
Project Closure
Identify key lessons learned Update knowledge management repository Identify opportunity for replication Revise budgets to reflect benefits Celebrate and sunset teams Communication to stakeholders