Lean Six Sigma Program Name

<Project Title (State From ... To)>
< Last Name, First Name > Wave No: <xx> Review Date: <xx/xx/xxxx>

Define

Measure Analyze Improve Control

LEAN SIX SIGMA

Define

Lean Six Sigma Program Name
Measure Analyze Improve Control

LEAN SIX SIGMA

Define Phase Road Map
Define Measure Analyze Improve

Define

Control

Activities
Team election and scoping • Review Project Charter • Validate High-Level Value Stream Map and Scope • Validate Voice of the Customer and Voice of the Business • Validate Problem Statement and Goals • Validate Financial Benefits • Create Communication Plan • Select and Launch Team • Develop Project Schedule • Complete Define Gate
• •

Tools
Project Charter • Voice of the Customer and Kano Analysis • SIPOC Map • Project Valuation/ROIC Analysis Tools • RACI and Quad Charts • Stakeholder Analysis • Communication Plan • Effective Meeting Tools • Inquiry and Advocacy Skills • SWOT Analysis • Time Lines, Milestones, and Gantt Charting • Pareto Analysis
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Project Description
Describe the project in non-technical terms
?

Define

Define the project’s scope and boundaries (locations, products, operations, etc)
Is the scope reasonable? Have key constraints and key assumptions been identified?

Where are you feeling the pain?
?

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Responsibility Grid
Gree nbel t Blac kbel t Mas te Blac r kbel t

Clarifying roles is a critical preliminary step for setting Improvement teams up for success!
Responsibility Grid
Depl oym Cham ent pi on Exec uti v Lead e er Proj ec Spon t sor Cust o me r
Decision

Define

1 = should be the only one to make this decision 2 = should have veto power over this decision 3 = should be one of those who votes

Charter

Define Measur e Analyze Execution
A = has to execute B = has to assist in execution (provide information,…) C = not involved in execution

Improve Responsibility Control
P = Perform A = Approve R = Review

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Team Effectiveness
Ground Rules Team Roles Team Meeting Frequency Tools used by Team Team Issues (Schedule, Vacations, Availability, Communication) Other

Define

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Strategy - Thought Map
Are the team members identified? Are my champions and Controller briefed?

Define

Problem
Has the CTQ’s been defined? Are the CTQ’s measurable ?

Critical variables identified?

Is Y=F(X) established ?

Can we control X’s?

Do we have a measurement system?

Can we have dashboards on X’s?

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Customer Segmentation Matrix
Customer Segmentation Matrix
Product / Service Customers Potential Segments

Define

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Kano Analysis Chart

Define

Ranking of Customer Needs

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VOC Plan
Process Name: Created By: Location: Additional Information: Customers and Segments Project Name: Date Initiated: Current Revision Date:

Define

List the various customers (external) and other key stakeholders (business partners, regulatory agencies, etc.) of your process. • Are there different types of stakeholders who may have very different needs? If so, list these as different segments.

• ? • ? • ?

What You Want to Know
• Develop a list of specifically what you want to know about your customers and other stakeholders needs. • Use the following list as a guide: • What are the most important process outputs (products/services)? • What is the performance level of the important outputs? • What are the problems with the outputs? What is their impact? • What do you like about _______? • What can be improved about _______? • What can be done to make your job easier? • What specific recommendations would you make to us? • How do we compare relative to our competitors? • How easy is it to do business with us? • • • • • • • • • • • • ? ? ? ? ? ? ? ? ? ? ? ?

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VOC Plan (Cont.)
Information Sources (Check the data sources that you think will be most useful) Reactive Data
Complaints Problem or service hot lines Technical support calls Customer service calls Claims, credits Sales reporting Product return information Warranty claims Web page activity Other:

Define

Proactive Data
Interviews Focus groups Surveys Comment cards Sales visits/calls Direct observation Market research/monitoring Benchmarking Other:

VOC Collection Plan Summary


• • • • • • • •

Summarize your plans to gather and use both reactive and proactive sources of VOC information. Indicate how much data you will get, how you will get it, and when. Include, for instance: What specific sources of data you plan on exploring The number of interviews or surveys you plan to use Which customers you will contact The amount of data you will collect - When you will start and end the data collection How you plan on analyzing the gathered information Etc.

• • • • • • • • •

? ? ? ? ? ? ? ? ?

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Voice of the Customer (VOC)
Customer
Who is the Customer?

Define

Voice of the Customer
What does the customer want from us?

Key Customer Issue(s)
We need to identify the issue(s) that prevent us from satisfying our customers.

Critical Customer Requirement
We should summarize key issues and translate them into specific and measurable requirements

? ? ? ? ? ? ? ?

? ? ? ? ? ? ? ?

? ? ? ? ? ? ? ?

? ? ? ? ? ? ? ?

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Voice of the Customer (VOC)
Customer “Voice of the Customer” Verbatim
Categories: Delighters / OneDimensional / Must-Be’s <….>

Define

Critical To Satisfaction

Questions
Who are the customer focus groups?

<Customer>

<“…..”>

<Design / Service / Process> <Design / Service / Process> <Design / Service / Process>

<Right Click, and select Add Text>

What methods were used to capture customer needs?

<Customer>

<“…..”>

<….>

<Right Click, and select Add Text>

<Customer>

<“…..”>

<….>

What CTQ is the primary focus for this project?

<Right Click, and select Add Text>

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Critical-to-Quality (CTQ) Tree
Performance attribute (Big Y) Profitability Effectiveness of return Share Supply chain responsiveness Supply chain Delivery reliability Level 1
Gross Margin Operating Income Net Income

Define
Level 2 (CTQ:Y)
Revenue COGS Sales General & Admin (SG&A) Corporate Taxes

Return on assets
Delivery Performance

Supplier on time P.O on time Warehouse on time & in full shipment 3PL on time

Fill rate Perfect order fulfillment

Process Requirement Defect

<Right Click, Add Text> <Right Click, Add Text> <Right Click, Add Text> <Right Click, Add Text>

Unit of Measure Data Type

<Right Click, Add Text> <Right Click, Add Text> <Right Click, Add Text> <Right Click, Add Text>

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Quality Functional Deployment (QFD)
Importance Rating Legend

Define
Correlation Matrix
Strong Positive Positive Negative

Importance Ratings Importance Ratings Strong Impact 9
Moderate Impact 3 Strong Impact Strong 1 Weak Impact Impact "Blank" for no Impact

9 9 3 3 1 1

Moderate Impact Moderate Impact Weak Impact Weak Impact

#
P ro cess R eq u irem en ts C redit A pprov al C hec k

#
T o tals "W h at Im p o rtan ce" F unding Loan U nderw riting

Strong Negative

#

"Blank" for No Correlation

V O C P rio ritiz atio n R atin g

Competitor Comparison:
Washington Mutual Wells Fargo Countrywide Bank of America

F ill O ut F orm s

Loc k Loan

VOC Prioritized Comments

C los e

1 Loan Approval Cycle Time 1st Call Resolution Approval to Loan Close Cycle Time Fee (Good Faith Estimate) Accuracy Invoice Completeness Average Speed To Answer Unexpected Fees Totals "How Importance" 5 2 5 3 4 1 2 <= 14 days >= 75% <= 30 days >= 85% 100% <= 15 sec <= $5 9 1 0 9 9 1 9 129 9 0 0 3 9 0 1 92 9 9 1 1 9 0 1 109 0 0 3 0 0 0 9 33 0 0 9 0 0 0 1 47 0 9 0 1 1 0 1 27 135 38 65 42 112 1 44

2

3

4

5

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Project Definition - Includes/Excludes
Project Scope
Includes Excludes

Define

What: Where: When: Who: Time:
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VOC - SIPOC
S Suppliers
Providers of the required resources Resources required by the process

Define

I Input
(Numerical requirements on inputs) Requirements

P Process
Top level description of the activity Deliverables from the process

O Output
(Numerical requirements on inputs) Requirements

C Customers
Stakeholders

• • •

? ? ?

• • •

? ? ?

• • •

? ? ?

Start

• • •

? ? ?

• • •

? ? ?

• • •

? ? ?

Stop

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Schedule
Review high-level schedule milestones here
Phase Completions Gate Reviews Executive Briefing
Tollgate Review Schedule Tollgate Review Schedule
Tollgate Define: Measure: Scheduled XX/XX/XX XX/XX/XX XX/XX/XX XX/XX/XX XX/XX/XX Revised XX/XX/XX XX/XX/XX XX/XX/XX XX/XX/XX

Define

Complete XX/XX/XX XX/XX/XX XX/XX/XX XX/XX/XX XX/XX/XX

Phase 1: Define Phase 2: Measure Phase 3: Analyze

Analyze: Improve: Control:

Phase 4: Improve Phase 5: Control

Oct 07

Nov 07

Dec 07

Jan 08

Feb 08

Mar 08

Apr 08

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Team Charter
Resource Plan
Project Lead Project Sponsor Project Champion Coach Team Members

Define

Project Information

Tollgate Review Dates
Date Define Measure Analyze Improve Control Signoff

Rolling Action Item List (RAIL)
Meeting Date Meeting Frequency

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Project Charter
Business Case
• Process Start: <…> • Process End: <…> • In Scope: <…> • Out of Scope: <…..> • Constraints: <…>

Define
Project Scope

<Explain why did you pick up this project?>
Problem Statement

Key Learning's
• Impacted Process: <…> • Cultural Change:<…> • Organizational Change: <…>

<Explain the pain felt by the customer>
SMART Goals CTQ Baseline Actua l World Benchmark

Recommendations
• Effort Replication Areas: <…>

Customer Satisfaction Benefits

<Explain the benefits for the customer>

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Critical Path Analysis / Pert / Gantt Chart

Define

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Business Impact
State financial impact of project Separate “hard or Type 1” from “soft Type 2 or 3” dollars State financial impact of future project leverage opportunities
Annual Estimate
Revenue Enhancement Expenses Reduction Loss Reduction Cost Avoidance Total Savings
• Type 1: ? • Type 2: ? • Type 3: ? • Type 1: ? • Type 2: ? • Type 3: ? • Type 1: ? • Type 2: ? • Type 3: ? • Type 1: ? • Type 2: ? • Type 3: ? • Type 1: ? • Type 2: ? • Type 3: ? • Type 1: ? • Type 2: ? • Type 3: ? • Type 1: ? • Type 2: ? • Type 3: ? • Type 1: ? • Type 2: ? • Type 3: ? • Type 1: ? • Type 2: ? • Type 3: ? • Type 1: ? • Type 2: ? • Type 3: ?

Define

Replicated Estimate

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Business Impact Details
Show the financial calculation savings and assumptions used.
Assumption #1 (i.e. source of data, clear Operational Definitions?) Assumption #2 (i.e. hourly rate + incremental benefit cost + travel)

Define

Type 1: Describe the chain of causality that shows how you determined the Type 1 savings. (tell the story with cause–effect relationships, on how the proposed change should create the desired financial result (savings) in your project )

Type 2: Describe the chain of causality that shows how you determined the Type 2 savings. (tell the story with cause–effect relationships, on how the proposed change should create the desired financial result (savings) in your project ) Show the financial calculation savings and assumptions used.
Assumption #1 (i.e. Labor rate used, period of time, etc…) Assumption #2 (i.e. contractor hrs or FTE, source of data, etc…)

Describe the Type 3 Business Impact(s) areas and how these were measured
Assumption #1 (i.e. project is driven by the Business strategy?) Assumption #2 (i.e. Customer service rating, employee moral, etc…)

Other Questions
Stakeholders agree on the project’s impact and how it will be measured in financial terms? What steps were taken to ensure the integrity & accuracy of the data? Has the project tracking worksheet been updated?

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SWOT Analysis
Strength Weakness

Define

? ? ? ?
Opportunity Short Term

? ? ? ?
Threat

? ?

? ?

Long Term

? ?

? ?

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Multi-Generational Project Plan
MGPP
Gen1 Target Date Vision Gen2 Gen3

Define

Key Functionality

Technology Requirements

Target Customers

Metrics

Dependencies

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Process Bottleneck Identification & Workload Balancing

Define

Takt Rate Analysis compares the task time of each process (or process step) to: Each other to determine the time trap Customer demand to determine if the time trap is the constraint
Value Add Analysis - Current State
80 70 60 50 40 30 20 10 0
Takt Time = Net Process Time Available Number of Units to Process
Takt Tim e = 55

-<Right Click, and select Add Text>

Task Time (seconds)

--

<Right Click, and select Add Text>

---

1

2

3

4

5 6 Task # BVA Time

7

8

9

10
<Right Click, and select Add Text>

CVA Time

NVA Time

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Influence Strategy
Influence Strategy Stakeholder Issues/Concerns Identify "Wins"

Define

Influence Strategy

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Communication Plan
Audience Media Purpose
Topics of Discussion/ Key Messages

Define

Owner

Frequency

Notes/Status

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RACI Chart
R = Responsible – The person who performs the action/task. C = Consulted – The person(s) who is consulted before performing the action/task. I = Informed – The person(s) who is informed after performing the action/task.
Step 1 2 3 4 5 6 7 8 9 10 Action/Task Responsible Accountable Consulted

Define

A = Accountable – The person who is held accountable that the action/task is completed.

Informed

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Current Status
Key actions completed Issues Lessons learned Communications, team building, organizational activities
Upcoming Deliverables/Tasks - 2 weeks out Due Revised Due

Define

Lean Six Sigma Project Status and Planning
Deliverables/Tasks Completed last week Comments

W/E:

Comments

For deliverables due thru: Actions Scheduled for next 2 Weeks Deliverable/Action Who Due Revised Due Comments/Resolution Need Help

Issue/Risk

Current Issues and Risks Who Due Revised Due Recommended Action Need Help

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Next Steps
Key actions Planned Lean Six Sigma Tool use Questions to answer Barrier/risk mitigation activities

Define

Lean Six Sigma Project Issue Log
No.
1 2 3 4 5 6 7 8 9 10

Description/Recommendation

Status Open/Closed/Hold

Due Date

Last Revised: Revised Due Date

Resp

Comments / Resolution

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Define

Stop

Tollgate Checklist

Tollgate Review

Has the team defined the opportunity from both business and customer perspectives?

Define

Is this project important, i.e. has the project been chosen because it is in alignment with <Business Unit> goals and the strategic direction of the ‘business’? What is the problem statement – detailing (what) is the problem, (when) was the problem first seen, (where) was is it seen, and what is the (magnitude or extent) of the problem. Is the problem measured in terms of Quality, Cycle Time or Cost Efficiency, not expected financial benefits? Ensure there is no mention or assumptions about causes and solutions. Does a goal statement exist that defines the results expected to be achieved by the process, with reasonable and measurable targets? Is the goal developed for the “what” in the problem statement, thus measured in terms of Quality, Cycle Time or Cost Efficiency? Does a financial business case exist, explaining the potential impact (i.e. measured in dollars) of the project on the business units, suppliers, external and business customers, etc.? Is the project scope reasonable? Have constraints and key assumptions been identified? Have IT implications been addressed and coordinated with IT managers? Who is on the team? Are they the right resources and has their required time commitment to the project been confirmed by Sponsor and Team? What is the high level work plan? What are the key milestones (i.e. dates of tollgate reviews for DMAIC projects)? Who are the customers (business units, suppliers, external and business customers) for this process? What are their requirements? Are they measurable? How were the requirements determined? Who are the key stakeholders? How will they be involved in the project? How will progress be communicated to them? Do they agree to the project? What kinds of barriers/obstacles will need assistance to be removed? Has the development of a risk mitigation plan to deal with the identified risks been developed?

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Sign Off
• I concur that the Define phase was successfully completed on MM/DD/YYYY • I concur the project is ready to proceed to next phase: Measure

Define

Enter Name Here
Green Belt/Black Belt

Enter Name Here Enter Name Here
Sponsor / Process Owner Deployment Champion

Enter Name Here
Financial Representative

Enter Name Here
Master Black Belt

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Bonacorsi Consulting
This Training Manual and all materials, procedures and systems herein contained or depicted (the "Manual"), are the sole and exclusive property of Bonacorsi Consulting, L.L.C. The contents hereof contain proprietary trade secrets that are the private and confidential property of Bonacorsi Consulting. Unauthorized use, disclosure, or reproduction of any kind of any material contained in this Manual is expressly prohibited. The contents hereof are to be returned immediately upon termination of any relationship or agreement giving user authorization to possess or use such information or materials. Any unauthorized or illegal use shall subject the user to all remedies, both legal and equitable, available to Bonacorsi Consulting. This Manual may be altered, amended or supplemented by Bonacorsi Consulting from time to time. In the event of any inconsistency or conflict between a provision in this Manual and any federal, provincial, state or local statute, regulation, order or other law, such law will supersede the conflicting or inconsistent provision(s) of this Manual in all properties subject to that law. © 2006 by Bonacorsi Consulting, L.L.C. All Rights Reserved.

Steven Bonacorsi is a Senior Master Black Belt instructor and coach. Steven Bonacorsi has trained hundreds of Master Black Belts, Black Belts, Green Belts, and Project Sponsors and Executive Leaders in Lean Six Sigma DMAIC and Design for Lean Six Sigma process improvement methodologies.
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