Lean Six Sigma

Yellow Belt
Introduction to Lean Six Sigma
Welcome and Introductions
• Name
• Organization and role
• Time with HP
• Experience with Lean Six Sigma
• Expectations from the class
• Ice-breaker

2
HP’s Continuous Improvement Journey
Future State
Problem solving self-sufficiency
Current State
Strategically targeted improvement
Isolated process engagement
A true data-based culture
Limited, LOCALIZED improvement Embedding
Continuous Fully engaged CI leadership
Employees disconnected from HP strategy Improvement
Skilled, ACTIVE workforce
Inadequate data skills into our DNA
“ONE HP” Continuous Improvement Culture
Over-engineered processes
Embed- 2015
Fragmented CI support

Define- 2013

3
Objectives
• Learn to use Lean Six Sigma as a powerful business advantage
• Develop an understanding of the DMAIC methodology
• Increase your process and data skills using Lean Six Sigma tools
• Practice using DMAIC for data-based process improvement
• Introduce some simple statistical concepts

4
Ground Rules
• This is a learning environment – Make the most of it

• Ask questions, share examples

• Respect each other’s time

• This class provides basic skills but keep a list of questions and things that YOU would
like to learn more about

• HAVE FUN!!

5
Facilities
Emergency exits
Rooms
Breaks
Lunch
Restrooms
Drinks / Refreshments

6
X Ball: A Business Simulation (Round 1)

7
Welcome to X Ball
Simulation Roles
• Customer
• Salesperson
• Procurement
• Internal Transfer
• Five Operators
• Quality Control
• Packaging
• External Transfer

8
How it works:

Customers order the products from sales. Sales sends

to Procurement. Procurement sends to Internal Transfer who
carries to Operators. Operators build. Quality Control
inspects. Quality Control transfers to Packaging. Packaging hands off to External
Transfer. External Transfer sends to Customer. Customer
receives and inspects.

Got it?
9
X Ball: Let’s try it!

10
Lean Six Sigma
Introduction
What Is Lean Six Sigma?
• Customer-focused X
XX X XXXX X
X
philosophy of data-driven XX X X X
X X
process excellence

• Common set of tools and Lean Six Sigma

tactics for achieving faster + better
Six Sigma
sustainable change
Faster $$
• Proven strategy to drive X XX XX X
XX XXXXXXXX
improved business results

Lean Six Sigma = Better, Faster, Cheaper

12
Why does HP need Lean Six Sigma?
• Poor or inconsistent quality reduces sales revenues and customer loyalty
• In a value stream, as much as 95% of lead time is spent waiting
• Poor quality increases customer lead time
− A 10% error rate can increase cycle time by 40% while reducing overall capacity

• Lean tools drive cycle time reduction

• Six Sigma improves quality and reduces variability

Lean Six Sigma increases capacity and reduces cycle time,

process variability, and defects
13
What is Six Sigma?

• A customer-focused philosophy of data-based problem solving

• A structured framework for achieving sustainable process improvement
• A disciplined process that enables delivery of near-perfect products and
services
• A successful business strategy to drive bottom-line improvement

14
 Lean Six Sigma Roles
Creates, owns, and articulates the Lean Six Sigma Vision
Strategy

Executive Belt
Relentlessly drives it to completion
Deploys Lean Six Sigma in the business
LSS Business Champion
Drives KPIs and priorities
Lean Six Sigma expert
LSS Master Black Belt
Works on business-wide issues, teaches and mentors
Execution

Experienced Lean Six Sigma practitioner

LSS Black Belt
Works on cross-functional issues and mentors
Lean Six Sigma practitioner
LSS Green Belt
Works on larger, local issues, projects are 90-180 days
Lean Six Sigma contributor
LSS Yellow Belt
Works on immediate local issues, projects are 30-90 days
Lean Six Sigma aware
LSS White Belt
Project team member

15
 Lean Six Sigma Framework
1. Define 2. Measure 3. Analyze 4. Improve 5. Control
Describe the problem Collect baseline data Identify the root cause Select the best solution Sustain the gains

• Project Selection • CTQ Metrics • Pareto Chart • Brainstorming • Statistical Process

• Project Charter • Meas. Sys. Analysis • Run Chart • Benchmarking Control
• VOC, VOB • Summary Statistics • Cause and Effect • Force Field Analysis • Control Plan
• Problem Statement • Process Capability • Scatter Diagram • Criteria Test • Cost-Benefit Analysis
• Process Map/SIPOC • Control Chart • Value Analysis • FMEA • Mistake Proofing

Project Critical To Quality Tree Solution

Charter Analysis and
Pareto Chart Selection
Statistical
Process Control
Voice of the
Risk Assessment
Customer, MSA
Voice of the Sustainability &
Run Chart
Business benefits

Process Summary Solution Project

Map
Cause & Effect Implementation
Statistics Diagram Handoff

16
Define Phase
X Ball Project Charter

18
Writing a Problem Statement
• Describes the problem the team is working to solve
• Must quantify “what” is happening and the negative impact
• Should NOT contain unverified causes, solutions, or blame

Example:

It currently takes an average of 17 days to get parts through Customs into

China. This year, the time varied from 4 days to over 43 days. This has
resulted in 9 late deliveries over the past 4 quarters, including one cancelled
order of 14 million dollars.

19
Customers Define “Quality”

We must understand Flexibility

what the customers of and Options

the process care about! Timeliness Accuracy

Customer

Ease
Aesthetics
of Use
Price
and Cost
20
The Kano Model
3 Types of Customer Requirements:
• Must Be’s – “Dis-satisfiers”
− Basic needs or expected attributes
− Implicit requirements that MUST be met
• One-Dimensional – “Satisfiers”
− Stated performance requirements
− “More/less the better”
• Delighters- “Wow Factors”
− Difficult to determine but may create positive
customer experience
− Become dis-satisfiers over time

21
Voice of the Customer
Translate customer needs into measurable requirements
Good customer requirements:
• Are specific and measurable
• Are related directly to an attribute of the product or service
• Don’t bias the design toward a particular approach or technology
• Are complete and unambiguous
• Describe what, not how
Voice of the After Clarifying the Customer
Customer Key Issue(s) Requirements
• “The mower should be
• Mower starts within two
easy to start.” Wants the mower to start pull on the cord
• “The cord shouldn’t be too quickly and painlessly
• Pull effort <= 5 pounds
hard to pull.”
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SMART goals

Goals should be SMART:

− Specific
• “To get in shape for summer, I plan to
− Measurable lose 10 pounds by June 1.”
− Attainable
− Relevant • “So we are prepared for the QBR, we’ll
− Time-bound collect data from all six locations and
have them loaded into the database by
the 25th of January.”

23
Working with stakeholders
Support & Influence Matrix
•LS + LI = Anchors, opposition won’t
influence organization. Cast your rod trying
to shift their support, but if they don’t bite,
cut bait.

• HS + LI = Workhorses, channel their

passion into getting tasks and time
intensive work done
Support

• HS + HI = Rock Stars, find high profile

activities, using their influence to address
obstacles & gain momentum

•LS + HI = Bulldogs, convert them, find a

way around them, or they will limit your
project’s success
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Influence
Stakeholder analysis
• Stakeholders are key to implementing and sustaining your solution
• Their level of support and influence should be carefully considered in all
phases of DMAIC

Stakeholder Current Level of Level of Communication Who? How often?

Support Influence Requirements
(H,M,L) (H,M,L)

25
Stakeholder Analysis
Why is your plan important to each stakeholder Proposed strategy and
Who is affected by How critical is this person to
What do you need from each person to and/or what are the risks to your plan from each actions to gain
your plan or needed the plan’s success?
successfully carry out the plan? stakeholder if no support? stakeholder commitment
in the plan
(what’s in it for me?)
High Med Low Importance Risks
• Central
• Lack of adoption will
repository/standard
• Adhere to standard process minimise the benefit • Accurate info in a central
ES PM’s
 • Report final $ savings.
process to follow-
Improved user experience
we see from repository
• Attach project & financial docs to PPMC improvement • Quicker & easier process
• Minimised requests for info
changes in terms of to generate
& reporting lines-saving
data accuracy.
time
• Will quicken the ability to
• Buy in from leadership
generate an accurate
team
 • Supply monthly report of project savings realised report. • Reduced
• Quicker, more agile
ES Quality & estimated for the year ($) • Improve PPMC data improvement if plan
process
accuracy isn’t followed
• Less manual
• Minimise tasks which are
• Accurate reporting
currently done manually
• Emphasis on greater
• Changes wont be outputs
PPMC Steering • Review and implement necessary change • Drives usage of the tool implemented to the • Drives usage
Committee  measures to drive improvement • Improves outputs tool to drive • More accurate reporting
improvement • Makes the tool a success
story
• More reliable process
• Greater accuracy around
$ benefit in PPMC
• Tasked with verifying all $ • Quicker & less complex
• Determine & verify where savings will be realised
BPM Finance
 in the P&L
•
benefit from projects
Changes could result in
• Cycle time remains
to produce
• Outline where further detail is required high due to wait time
more accurate readings
(Rejection process?)
quicker
26 26 3 June 2015
X Ball: What is the VOC?

27
SIPOC
A chart showing the high-level components of a process
− Suppliers – Significant internal/external suppliers to the process
− Inputs – Significant inputs to the process i.e. material, forms, information, etc.
− Process – One block representing the entire process
− Outputs – Significant outputs to internal/external customers
− Customers – Significant internal/external customers of the process

The best place to start mapping process!

A high-level SIPOC chart helps identify the process

output(s) and the customers of that output so the
Voice of the Customer can be captured
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How To Build A SIPOC

Suppliers Inputs Process Outputs Customers

Hiring
Manager Request New person
Hiring Process in place and Manager
Society Candidate productive
Pool

Brainstorm Brainstorm
Identify Identify Label the and and
Suppliers Inputs Process Prioritize Prioritize
Outputs Customer

29
Creating a SIPOC for your process

30
X Ball: SIPOC

31
Process Mapping
• A Process Map is a picture of how process steps turn inputs into outputs
• Uses standard symbols
• The most common process map types are Linear,
• Cross-Functional, and Layout maps

Note:
Create early versions of process maps on white-boards, paper, or Post-It™
notes to facilitate changes as your understanding of the process evolves.

Decision Pre-defined
Start / End
Point
Flow Action
Process

32
Process map example:
Setting up a conference call example: detailed level for Get conference line step

Get
Select Set date Notify
Start conference Done
attendees and time attendees
line

Do you Get number

Is call Add
know your
domestic or participant
conference Yes
international? conference
codes?
Get information to
document meeting notice
No
Yes

Did you
Look them Go to
find
up No GetIT
them?

33
Layout Map (Spaghetti Diagram)
• A Layout Map is a graphical representation of the work area
• Arrows are drawn between work stations to show the flow of the process

Station 1 Station 4

Station 6 Station 2

Station 3 Station 5
Station 7
34
X Ball: Process Map

35
High-level process map for X Ball
Operator 1
Internal
Customer Sales takes selects band
Sales picks Procurement Transfer
calls out order to and installs;
up order gets ball takes ball to
“Sale!” Procurement transfers to
Operator 1
Operator 2

No
External
Repeat for Send to QC Customer
Good Transfer
Operators for Packaging receives
2–5 inspection
? Yes back to
product
Customer

But….does it REALLY happen like this?

Does this reflect the process we saw?

36
Is this a better representation of the process?
Customer
Operator 4 Internal
Operator 1 Transfer

External
Transfer Operator 2

Quality
Check
Packaging
Procurement

Operator 3
Operator 5
37
Sales
Define Phase
Objectives: Deliverables:
• Confirm that the project is viable • Project Charter
• Define and confirm scope • Problem statement
• Key metrics
• Confirm sponsor and stakeholder
• Team members
support
• SIPOC
• Finalize team members
• High-level Process Map
• Begin to detail the problem, process,
and project • Project Management tools
• Stakeholder Analysis
• Communication Plan
• Project Plan

38
Measure Phase
What Is a Measure?
• A quantified evaluation of characteristics and/or level of performance based on
observable data

• Examples include:
• Length of time (speed, age)
• Size (length, height, weight)
• Dollars (costs, sales revenue, profits)
• Counts of characteristics or “attributes” (types of customer, property size, gender)
• Counts of defects (number of errors, late checkouts, complaints)

42
Types of data
Qualitative vs. Quantitative
• Qualitative: Describes a quality or characteristic (color, type, material, etc.)
• Quantitative: Measurable attribute (age, height, length, etc.)

vs.

Continuous vs. Discrete

• Continuous: The measurement scale can be meaningfully divided into finer and finer
increments of precision (temperature, height, weight, amount, etc.)
• Discrete: Typically counted as the frequency of occurrence or the number of times something
happens (counts, aggregated levels, etc.)

vs.
43
Using Input, process, and output measures

Y = f(X)
Input (X) Process (f) Output (Y)

What you get out is the result of what you put in and how you process it!

44
Measures
Input, process, and output measures

X data: Predictor or Y data: Results or

leading measures Process measures lagging measures

Input (X) Process (f) Output (Y)

• Arrival time • Duration of each step • Customer satisfaction
• Accuracy • Delay between steps • Total defects
• Cost • Yield at each step • Cycle time
• Specifications • Rework at each step • % Late
• Cost and profit

45
X Ball: Are we measuring the right things?

46
Operational definitions

An operational definition is a precise, detailed

description that removes ambiguity

Example
Message 1: Class begins promptly at 9 a.m. It is very important
that you arrive on time.
Message 2: Class instruction begins at 9 a.m. Please have your
laptop set up and connected to the network before class starts.

47
Data collection plan
• Defines what, where, when, how, and by whom
• Has clear operation definitions
• States the sample size for each measure
• Includes space for stratification factors and comments
• What data is needed to “baseline” our problem?
• What “upstream” factors may affect the process/problem?
• What do we plan to do with the data after it’s gathered?

Data Collection Plan

What to Measure Type of Data Operational Definition Data Collection Form Sampling Plan Timeframe Objective Due Date
Continuous for times March 2003
Open Receivables collected; discrete Categories of 31 Aged Open through May Determine if differences exist Completed
1
by Carrier counts for defects days or more Receivable Report All life carriers 2003 from carrier to carrier
Reject Reasons Continuous/Discrete $ and # as they relate ISP222 Report Manulife March 2003 Determine key issues with By 7/11/03
2
to open receivables through May rejects as they relate to Open
2003 Receivables to identify
opportunities for improvement.
Reduce manual intervention so
that open Receivables will be
48 posted quicker
Baseline data….start with Descriptive Statistics

Measures of Center
• Mean

Frequency
60
• Median 45
• Mode 30
10 20 30 40 50 60 70 80 90 100 110 120
Response
Measures of Variation
• Range
• Standard Deviation

49
X Ball: Baseline data & operational definitions

50
Measure Phase
Objectives: Deliverables:
• Identify key measures • Detailed Process Map
• Check for consistent operational • Key metrics
definitions • Input/Process/Output Metrics
• Collect and display baseline data • Operational definitions
• Update the charter, if needed • Data collection plan
• Baseline data display
• Histograms
• Run charts
• Pareto charts

51
Analyze Phase
Three types of analysis
• Data: Using observations to describe the process and its behavior

• Value: Identifying value-added and non-value-added steps

• Experiential: Stepping through the process with the team to identify typed
and reasons for problems

53
Graphical data analysis: Pareto Charts
Pareto chart: Reasons for being late to work

70 100%
90%
60
80%
50 70%
60%
40
50%
30 32 40%

20 30%
20
20%
10
10%
8 6 4 3
0 0%
Traffic Sick Overslept Family care Car trouble Bad weather
54
Anatomy of a histogram

A. Vertical axis – frequency or the percentage of data points in each class

B. Modal class – class with the highest frequency
C. Frequency – number of data points found in each class
D. Class – each bar is one class, or interval
E. Horizontal axis – scale of measure for the Cycle Time characterized
A
BB
60
50
C
Frequency

40 D
30
C
20
10 E
0
100 200 300 400 500 600 700 800 900

55
Anatomy of a run chart
Identify key process factors
• Gather data
• Draw and label the horizontal and vertical axes
• Add the data to the chart 90

• Analyze the chart 80

80

70

# Miles RunRun 68 68
60
# Miles
60 60
50 50
50 55 55
50 50 50
40
46 46

30

25
20
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Week

56
Week
Graphical data analysis: Scatter Plots

Correlation by itself does not imply a cause and effect relationship!

When is it correct to infer causation?

Number of Births
Average Temp

Number of Pirates Number of Storks

Lurking variables!
57
X Ball: Graphical data analysis

58
Value analysis
• VALUE is determined by the customer
• Traditional criteria for Value-Add include:
• Must change Form, Fit, Function, or Feature
• Something the customer is willing to pay for
• Must be done right the first time

• Many activities DO NOT add Value. They are

considered WASTE and should be
eliminated!
Waste Facts Note: Some activities may be considered “Non Value-
 Production Environment – 30% Waste Added but Necessary” BUT the criteria should be
rigorously applied BEFORE settling on that classification
 Services Environment – 70% Waste
59
The 8 Types of Waste
An Introduction to Tim P. Wood
T Excess transportation
I Inventory
M Motion
P. People – misused skills or capacity
W Waiting
O Overproducing
O Over processing
D Defects
Tim Wood Costs Time And Dollars
60
X Ball: Value and waste in the process

61
Qualitative Analysis
Tech Ball Cause & Effect Diagram

People Information Environment

Why?
Why?
Poor throwing skills

Why? Defects

Why? Process order is

confusing

Why?
Materials Methods

What are the possible causes?

62
5 Whys: A true railroad story
Does the statement, “We've always done it that way!”
sound familiar?
A true story …. the global, standard, mainline railroad gauge
(distance between the rails) is 4 feet, 8.5 inches.
Why was that gauge used?
• The first railroads were built in Great Britain by laying rails in the ruts in existing stone-paved
roads
• Those roads were built by Imperial Rome and have been in use ever since
• Roman war chariots formed the ruts, later users matched the spacing to preserve their wheels
• Roman military chariots had a standard wheel spacing ---
• Just wide enough to accommodate the width of two war horses

63
Now the twist to the story
• The US Space Shuttle had two big booster rockets attached to the sides of
the main fuel tank
• These solid rocket boosters were made at a factory at Utah
• The engineers who designed the rockets would have preferred to make
them a bit fatter
• but they were shipped by train through tunnels wide enough for standard
railroad cars…

So, a major design feature of what is arguably the world's

most advanced transportation system was determined
over two thousand years ago by the width of a Roman
horse!

64
X Ball: What are the causes?

65
Finalizing the Root Causes
Following our analysis, we then:

Identify and
prioritize
root causes
Select the
vital few

Validate
with data

Confirmed Root Causes

66
Analyze Phase
Objectives: Deliverables:
• Focus on key input variables • Potential root cause identification
• Establish cause-effect relationships • NVA Analysis / 8 Wastes
• Select the actual root causes • Run Chart
• Histogram
• Validate selected root causes
• Narrow list of root causes
• Refine problem statement if needed
• Cause-Effect Diagram
• Prioritize, select, and specify actual
root causes
• Pareto chart
• Scatter Plot

67
Improve Phase
Improve phase activities

Brainstorming
Find What will address the root causes?
solutions Solution Selection
Which is the BEST solution?

Test

Implement

69
Brainstorming

Brainstorming is a structured method of generating unconstrained ideas/solutions

and gaining engagement/involvement in the improvement process
• It produces many ideas/solutions in a short time
• It facilitates the creative thinking process
• It separates idea generation from the organizing/assessment of the ideas

70
Solution Selection

• Brainstorming should be followed by a narrowing and synthesizing of ideas to

find the best solution

Generate
Narrow the List Select the Best
Potential
and Synthesize Solution
Solutions

71
Affinity Diagrams
• Use brainstorming to develop potential solutions
• Use an Affinity Diagram to help categorize and consolidate possible solutions

Category Category Category

Solution Solution Solution

Solution Solution Solution

Solution Solution Solution

72
Evaluate solution alternatives
Solution selection matrix: Call center example

Criteria and weights

Will improve
customer
Easy to implement Low cost satisfaction

Solution 4 7 9 Sum

New phone system 3 (rating) x 4 (wt) = 12 1 (rating) x 7 (wt)= 7 3 (rating) x 9 (wt) = 27 46

More training 4 (rating) x 4 (wt) = 16 3 (rating) x 7 (wt) = 21 1 (rating) x 9 (wt) = 9 46

Increase staff 6 (rating) x 4 (wt) = 24 3 (rating) x 7 (wt) = 21 1 (rating) x 9 (wt)= 9 54

73
Test
Pilot purpose
• Confirm expected results Find
• Estimate cost or savings solutions
• Obtain feedback and data
• Prepare for full-scale implementation

Test

Remember: The goal is an

EFFECTIVE pilot, not just a
Implement
SUCCESSFUL pilot

74
Test
Pilot steps

Develop Update Conduct Evaluate

Measure
a pilot process pilot tested
results
plan maps test solution

Optimized solution

75
Implement

Find
solutions

Test

Action plan
Implement A plan to implement the solution
Tracking plan
A plan to track improvement over baseline

76
X Ball: What can we fix? How can we do it?

77
Change vs. transition

It isn’t really the change that’s difficult…it’s the transition

• Change is situational: the new location, the new boss, the new team, the new computer system, etc.
• Transition is the psychological process people go through to come to terms with the new situation
• Change is external…Transition is internal

78
Improve Phase
Objectives:
• Brainstorm possible solutions
• Evaluate alternatives
• Determine optimal solution
• Pilot the solution
• Develop Implementation Plan
• Implement new process
79
Deliverables:
• Decision-making and evaluation tools
• Solution Selection Matrix
• Pilot
• “Should be” map
• Project Implementation Plan
X Ball: A Business Simulation (Round 3)

80
Control Phase
Control plans

Ensure consistent operation of processes as developed through the project

• Holds the performance gains made!
• Adjusts as conditions change and further improvements are made
• Has formal provision for periodic review

Control plans provide a written summary of actions to keep the process in control
• They do not replace information contained in detailed instructions

82
Monitor the process: Control Plan example

New hire paperwork processing control plan

Start date and Corrective

Category Task or action Control plan Owner Target
frequency action

Verify that all process 100% of team using

Process flow Jon Batista Immediately and Remove all outdated
Post to network performers can get to new process
and SOP (process owner) upon updates documentation
the posted documents documentation
Starting in Q2,
Verify that all process 100% of team Re-train any who do not
Schedule Jon Batista schedule one
Training performers have been completes training and achieve a passing score
training (process owner) session per week
scheduled for training passes assessment on assessment
for six weeks
Send email to process
Primary Capture data and Measure daily, Process operates within owner if values exceed
Post control chart to Allison Ansari
metric control update control post control chart UC and LC limits 100% UC or LC limit.
network every Friday (HR specialist)
chart chart weekly of the time Document special
circumstances, if any

83
 Monitor the process
Control chart
Without control of an improved process, it tends to revert to old performance levels
UCL
Performance

Mean

LCL

Time

84
Before improvement Implementation Without controls in place
Communications plan

• Document your process improvement successes

• Share the new process expectations to your team and stakeholders
• Include new process steps and flow-charts
• Share your improvements with other work areas

85
Lessons learned sharing
• Other areas of HP need to know about your improvements!
• If you had inefficiencies, likely others do also
• Save other areas the need to “re-invent the wheel”

86
Control Phase
Objectives:
• Develop Control Plan
• Develop SOPs
• Monitor performance
• Complete transition meeting
• Develop communication/close-out plan
• Document opportunities for replication
• Document additional project
opportunities
Deliverables:
• Solution implemented
• Process monitoring
• Training and control documents
• SOPs
• Process Control Plans
• Training Plans
• Visual process controls
• Project Transition Plan
• Project hand-off and closure
• Team feedback session
• Final Project Report

87
Conclusions and
Takeaways
HP’s Continuous Improvement Journey
Future State
Problem solving self-sufficiency
Current State
Strategically targeted improvement
Isolated process engagement
A true data-based culture
Limited, LOCALIZED improvement Embedding
Continuous Fully engaged CI leadership
Employees disconnected from HP strategy Improvement
Skilled, ACTIVE workforce
Inadequate data skills into our DNA
“ONE HP” Continuous Improvement Culture
Over-engineered processes
Embed- 2015
Fragmented CI support

Define- 2013

89
90