TGB2.01 Lean Six Sigma Define Phase Rev RK 20060224

8/13/2019 TGB2.01 Lean Six Sigma Define Phase Rev RK 20060224

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2.01 Lean Six SigmaDefine Phase

Six Sigma

Green Belt TrainingGreen Belt Training

TransactionalTransactional

-- Week 2Week 2 --


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Lean Six Sigma

Define Phase

1. Define PhaseOverview

Version 2.1

6 November, 2006SKF/AIT

Six Sigma Green Belt Training,

2.01 Lean Six Sigma DefinePhase


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DMAIC Roadmap

Celebrate

Control Plan

Design of Experiments

Hypothesis Testing/Confidence Intervals

Multi-Vari StudyCapability Study

Statistical Process Control

Data Collection & Sampling

Measurement Systems Analysis

Potential Failure Mode and Effects AnalysisCause & Effect Matrix

Value Stream Map

Voice of Customer (SIPOC)

Rolled Throughput Yield

Process Map

Project Charter ControlImproveAnalyseMeasureDefine

Six Sigma Methodology and Roadmap for Common Tool Usage


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Define Phase

Define the Problem

Identify the Customer

Select Output Characteristic and Identify Key Process Input and

Output Variables and Graph Performance

Outline the Financial Consideration of the Project

Develop High Level Process Map

Scope Project and Outline Scope on Process Map


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Define Phase

Purpose

To obtain a clear understanding of the problem to be addressed

To define the problem and parameters and to establish well defined

boundaries

To identify the input and output variables

To develop roles, responsibilities, process steps, goals and milestones


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Define Phase

Deliverables

A well defined problem statement, objective and improvement metric

- project charter

Identification of the process or products customers

A Y/X diagram or similar graphic to outline the relationship between

the input and output variables

A primary metric trend chart indicating performance

A high level process map

A project scope including designation on the process map


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Objectives

Review of importance in selecting good Six Sigma projects

Process to select Six Sigma projects

Includes:

-Process for idea generation

-Sorting for good Six Sigma projects

-Prioritising


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Project Identification

Source of inputs for Six Sigma projects:

Link to the SKF Business strategies;

-10 % operating Margin

-6% sales growth

-4Z: (* Zero Defects, * Zero Broken Promises, * Zero Accidents, * Zero Lossmaking businesses)

-Beyond zero (sustainability)

Other targets/activities from Business Plan/Scorecard

Voice of Customer (VOC); e.g. satisfaction review

Audits/Reviews

Ideas individuals; Sponsors, Managers and other employeesSpin off effects from other projects


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YnY2

Delivery Service

Y3Reduced cost

Y4Profitable Growth

Y1Improved quality

Y

Y2,3,1 Y2,3,2

Y2,1 Y2,2 Y2,4Y2,3

X2,3,2,3Reduce Cycle Time

from idea conceptionto new product

Reduce Cycle Timefrom idea conception

to new product

Reduce Cycle Timefor marketing of

new product

Reduce Cycle Timefor marketing of

new product

Reduced Cycle timefor Time to Market

Reduced Cycle time

for Time to Market

Specific SixSigma projects

Specific SixSigma projects

X2,3,2,1 X2,3,2,2

Six Sigma Project Identification

Root CausesRoot Causes


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Six Sigma ProjectsContinues Improvements,

Ground fruits

Other Projectswhere Six Sigmais not suitable

Project Difference in Complexity

$ $ $ $$


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Look for the Right Metrics for Projects

Sigma Level

Rolled Throughput Yield (RTY)

Defects

Scrap & Rework

Inspection time

Broken promises Capacity or Cycle Time

Customer Satisfaction and Warranty Costs

Supplier Quality

Overtime

Expedited Freight

...


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Elements of a Six Sigma Project

Project Statement

-Describe, in detail, the problem (defect) that the business wants to solve andwhy it is a problem

-The problem statement should also include the baseline data and statistics

that support the justification as a project

Process Deficiency Basis

-Is the problem caused by defective process (Common Cause or SpecialCause)


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Clear Objectives

-Describe, in detail, the objective of the project and, what and how thebusiness experts to improve as a result of completing the project

Reduction in costs

Improved quality

Improved Product/service on-time delivery

Is the required data/measurements available? Can a measurement

system be implemented?


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Six Sigma Green Belt Training,2.01 Lean Six Sigma DefinePhase

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Reasonable Scope

-The project should be scoped for completion in approximately 6 months tomaintain momentum and enable correction with training (less than 4months for GB).

Return on Investment

-Describe, in detail, the calculation basis and assumptions for the projectssavings goal.

-Projects with lower potential returns should be calculated as potentialfuture Green Belt project


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Well Defined Ownership

-Project teams must be comprised of all significant process experts.-Managers with fiscal responsibility for the focus process area must be

ultimately responsible for the project implementation.

Management Commitment (Resources)

-Is the budget available to support capital required expenditures?

-Are necessary team members available in the time frame of the project?


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Project Categories Based on Complexity

S

I

X

S

I

G

M

A

Examples of projects thatare too big and too complex

for Six Sigma are: a new factory acquisitions

Continuous improvements,e.g. Five Whys Five S , QITs

Less complex problems andimprovement projects, following

DMAIC roadmap led by Green Belts

Improvementprojects, followingDMAIC roadmapled by Black Belts

If the actual task istoo complex for this

level, it should bemoved to next level


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Projects Type

Start with your customer!

External Driven Projects (one who receives finished goods)

Reactive to customer concerns / complaints

Proactive to customer desires (strategic projects)

Internal Pain Projects (next process operation)

Result from not doing things right the first time, poor system design,poor information flow, poor work flow systems


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Example of Manufacturing Projects

Conformance to external customer use specifications;

-Warranty reduction, customer satisfaction projects to ultimately improveprofitability

Conformance to internal product specification;

-Most products have manufacturing standards to meet (often related torework and scrap) to reduce cost

Operational efficiency;

-Processing time, material usage, equipment and facility usage to reduce cost


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Example of Administrative Process and

Service Operations Projects

Internal Business Processes (payroll systems, mail systems,

accounting systems)

Order System Processing (internal processing time, errors, amount of

rework)

Application Processing (internal approval process)

IT Systems (information flow, complaints)

Human Resource Management (staffing, training, benefits analysis)


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Example of Customer Transactional Projects

Call Centres (response/ resolution time)

Ordering Systems (order time to delivery, order accuracy)

Hospital Systems (patient flow)

Human Resource Management (customer service training)

Retail Services (wait time, customer satisfaction)


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Project Selection Process

This entire process is recommended, especially for the first Six Sigma

projects

Leaders new to selecting Six Sigma projects should consider coaching

from Champions and MBBs

Tip: First Six Sigma projects tend to need re-scoping as Belts andLeaders gain experience

Scoping is the process in which some projects should be expanded,

and some will need to be divided to close on time


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InputCreate Project

Ideas ListAssure the linkage to

the Business Strategies

Review with

the "Filtering

questions"

Pass

Nopass

Not typicalSigmaProjects

Prioritise theideas

Create a draftProject Charter

Six SigmaProject

Hopper

PotentialProjectsHopper

Assign Sponsorand Belt

Finalise theProject Charterbuilt on a SIPOC

Verify scopeand approveproject start

Run

project

Six Sigma Project Identification and Selection

Detailed process reviewedin Sponsor Training


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Excerpt from Project CharterExcerpt from the Six Sigma Charter to remind us all Six Sigma projectsshould improve one of the major drivers (10, 6, 4Z, Beyond Zero).

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Prioritise Using the

Simply list all of your sorted projects and sum the

leaderships votes to help in prioritising.

Weight 10 10 10 10 10 10 10

Criteria Category

Project Ideas:

State the Problem

Existing

Six

Sigma

project?

Project

Ranking Strategic gap

Strategic

or

important

customer

need

Sales

impact or

growth

potential

Improves and

develops Core

Product or

Service Offering

Improves or

develops

Core

Competency

TVA

impact

BOI impact

(annualized)

Strategic Business Fit Financial

10 10 10 10 10 1 10 1 10

Zero

Accident

impact

Broken

Promises

Zero

Defects

Zero Loss

Businesses

Scopable

to achieve

in < 6

months

Data

available or

possible to

validate

Probability

of success

Belt

available

Causes and

solutions

unknown or

not validated

SolvabilityStakeholder

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Project Prioritisation Matrix

Project Prioritization Matrix FILTERS Prioritizations from: 1(low), 3 (medium), 9 (1 2 3 4 5 6 1 2 3 4 5

STRATEGIC(link

toSc

orecard)

VALUEFOR

CUS

TOMER

GIVE

SAPROFIT

EAS

YTOD

O

(upto4-6months)

HIGH

PROCESS

FREQUENCY

No. 1.3 1.5 1.5 1.3 1

2

Steering Seal Optimization

(zytel parts) N N Y Y Y N 9 6.429 9 2.714 9 47.37

5

Eliminate rework of

phosphated stampings at

satellite plants N N Y Y Y N 9 3 9 4.429 9 44.46

4 Curl Design change N N Y Y Y N 5.57143 3 3 9 9 36.94

1

Increase FTY/decrease cost

for new product tools N N Y Y Y Y 0 0 0 0 0 0.00

3 Crankshaft Seal Optimization N Y Y Y Y N 0 0 0 0 0 0.00

6 0.00

7 0.00

8 0.00

9 0.00

10 0.00HINTS FOR PROJECT SELECTION:

1) Problem not to simple to solve

2) Try to formulate title starting with word: " Improve" or "Decrease "

4) Do Project Priority results fit with gut feeling ?? >>>>>>>>> IF NOT - RECHECK THE SCORING

3) For the first (learning) projects select to improve something what is: easy to measure with (preferably)

continuous data, and easy to collect the data

PROJE

CT

PRIORITY

Solution

/rootcause

Known

orsolutionis

easyto

implement?

Problem

beingaddre-

ssedelsewhere?Y/N

Project

address

strategi

carea?Y/N

Newpro

duct/pro-

cessor

service?Y/N

TotalSavings/Benefit

meetst

hetarget?Y/N

Processunderour

control

Y/N?

Project Name

Criteria

Hard Soft

193,754$

not

estimated

216,174$ $55,000

75,000$

not

estimated

84,456$

not

estimated

38,266$

not

estimated

SAVINGS

ESTIMATION / YEAR

FOR PRIORITIZED

PROJECTS(in $ U.S)

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Six Sigma Critical Success Factors

If the projects arent important

Management is reluctant to dedicate resource &

time

and results wont happen


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Lean Six Sigma

Define Phase

3. Project Scoping

Version 2.16 November, 2006

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Project Scoping

Project scoping has been one of the largest areas of opportunity

within many organisations Six Sigma deployment efforts

Issues have cantered primarily around over scoping the Six Sigma

Belts initial projects

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Project Scoping

Project Sponsor Primary Lead

Six Sigma Belt Secondary Lead

The Project Sponsor has the ultimate responsibility in effectivelyscoping a project however the Belt has a vested interest and should

be included in the process

Responsibility for Project Scoping

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Project Scoping

Project Sponsor Primary Lead

Six Sigma Belt Secondary Lead

Experienced Black Belts

Master Black Belts Deployment Champion

The Project Sponsor and Belt should use their availableresource pool in scoping projects

Support for Project Scoping

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Project Scoping

Issue with Large Scoped Projects

Additional Time Required to Close Project

Tangible cost of deployment

Intangible costs increase

World Peace

Boil the Ocean

World Hunger

Narrowing the Scope

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Project Scoping

Higher material costs

Higher labour costs

Frustration due to lack of progress

Diversion of manpower away from

other activities

Delay in realisation of projectbenefits

Team member turn-over

Lower project closure rates

Decline in the confidence of the Six

Sigma programme

Tangible cost of deployment Intangible costs increase

Narrowing the Scope

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Project Scoping

Small Projects

Larger Projects

Small Projects

Small Projects

Small Projects

Larger scoped projectsshould be broken down

into a number ofsmaller projects

Any project that is scheduled to take longer than six months tocomplete should be broken down into smaller subsequent projects

Narrowing the Scope

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Project Scoping

Tools Used for Scoping a Project

Y=f(X) Diagram

High Level Process Map (SIPOC)

Value Stream Mapping

Cause and Effect Diagram (fishbone)

Cause and Effect Matrix

Pareto Chart

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Project Scoping


Y=f(X) Diagram can be used to progressively uncover the deeper

relationship between an issue and its constituents

The relationships are continually uncovered until a factor is identified

that would serve as an adequate scope for a Six Sigma project

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Project Scoping

Y = X1 + X2 + X3 + X4

Y = X1 + X2 + X3 + X4 + X5

The taste of a glass of lemonade is dependent on: X1 the type of lemon ingredient X2 the amount of sugar added

X3 the type of water added X4 the amount of ice added

The type of lemon ingredient is dependent on: X1 if it was from fresh squeezed lemons

X2 if it was from liquid concentrate lemons X3 the it was from powder concentrate lemon

A fresh squeezed lemon are dependent on: X

1 where the lemons are grown

X2 how the lemons are transported X3 age when squeeze X4 how the lemons were squeezed X5 if pesticides where used when growing

In this example an adequately scopedproject may deal with the process forhow the lemons are squeezed asindicated by the circle around X4

Y = X1 + X2 + X3

Reference: Ford Motor Company ConsumerDriven Six Sigma Project Guidebook

Y=f(X) Diagram Example - Lemonade

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Project Scoping


High Level Process Map outlines the boundary area for a project

scope

The area addressed by the scope in a process map is circled

If the circle encompasses a large process area or if there is more than

one circle in separate areas of the map ... The project may be over-

scoped

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Project Scoping

BusinessProcess

(Strategic)

BusinessProcesses

SIPOC

DetailedSub-process

Map

BusinessDevelopment

Sales Underwriting Contracting Customer Service

Terms Docs Neg Close

Underwriters

SS

(ext.) Customers

(int.) Cust. Service Dept.

CC

Process Mapping Example

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Project Scoping


Cause and Effect Diagram (fishbone) can be used to outline the

boundary area for a project scope in the same manner as the process

map however with respect to causes instead of process steps

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Project Scoping


Pareto Chart can be used to break down a project scope using

numerical data the Pareto chart is typical used in conjunction with

one of the above methods to select the area of focus

If the potential scope encompasses several bars on the Pareto chart,

the project may be over-scoped

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Project Scoping

Refining the Scope

After data is collected in the measure phase it may be required to go

back and refine the scope and redefine the project specifics

Define

DataRe-scope

If re-scoping is required the projectcharter should be revised

Measure


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Write Project Charters for Project Hopper

For projects chosen that require a Six Sigma resource

If variation is the likely cause - choose Six Sigma-If the cause of the problem are waste, long lead time, long set-ups,

consider using lean approach or a combination of lean and Six Sigma.

Using the Sponsor, Belt, and others if necessary

Recognising that further development of charter will be required bythe Sponsor and Belt

Note: Controller is necessary and critical for successful project savings - Involvethe Controller from the start to estimate all potential savings

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2.01 Lean Six Sigma DefinePhase- 49 -

Project Descriptions and Charters

A REQUIREMENT for Belts to enter Six Sigma training!

Must have metrics identified PRIOR to training

NOTE: A Belt can enter training with multiple projects!

NOTE: A charter is a requirement to begin a Six Sigma project

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Ch k f A bili


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Check for Accountability

Personal Level

Each Belt, Sponsor, and Business Leader must be held personally

accountable for the success of the project

Reflected in performance review criteria

Business Level

Sponsor accountable for the project closure at goal

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P j t Ch t El t


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Project Charter Elements

Project Title and General Information

1. Problem Statement

2. Process Impacted

3. Benefit to Internal and External Customers

4. Benefit to the SKF Business

5. Constraints

6. Project Scope

7. Goals - Metrics

8. Project Costs

9. Milestone Chart/Schedule


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Lean Six Sigma

Define Phase

5. Project Management

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P j t M t


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Project Management

Keys to Successful Project Management

Project Charter

Milestones from Project Plan - Belt Gantt chart

Weekly schedule reviews

Formal toll gate review process

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Project Management


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Project Management

Project Plan

Every Belt project should have a detailed Gantt chart

The completion of DMAIC phases should be outlined as milestones

Work Breakdown Structure (WBS) of the Six Sigma Road Map should

be developed, based on experience and similar projects, for eachphase

Gantt chart should be used to manage the daily control of the project

and to make decisions

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Project Management


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Project Management

Weekly Schedule Reviews

Sponsors review of the Belts projects in their area

30-60 minutes in duration

Used to monitor all continuous improvement activity within an area

Road blocks should be reviewed

GYR (green-yellow-red) format used to identify projects requiring

additional help

G = ok, Y = team has correction plan in place, R (or Y on consecutive

weeks) = requires separately scheduled supplemental Sponsor project

review

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Project Management


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Project Management

Formal Tollgate Review Process

Typically performed on monthly or as needed basis

Review performed by Sponsor and Master Black Belt

Approval required at the end of each phase for the Black Belt to

continue on to next phase

Review of goal / purpose, deliverables, relevant tools for each phase

Key questions guide review

Documents

TGB2.01 Lean Six Sigma Define Phase Rev RK 20060224