Lean Six Sigm Program Nam

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

DefineMeasure Analyze Improve Control

LEAN SIX SIGMA

DefineMeasure Analyze Improve Control

LEAN SIX SIGMA

Lean Six Sigm Program Nam

Improve Phase Road Map
Define Measure Analyze Improve

Improve

Control

Activities
• Develop

Tools
Potential Solutions Select, and Optimize Best
• Replenishment • Stocking • Process • Process

Pull/Kanban

• Evaluate,

Strategy

Solutions
• Develop • Develop • Confirm • Develop

Flow Improvement Balancing Batch Sizing

‘To-Be’ Value Stream Map(s) and Implement Pilot Solution Attainment of Project Goals Full Scale Implementation Plan Improve Gate

• Analytical • Total

Productive Maintenance of Experiments (DOE) Selection Matrix

• Design

• Complete

• Solution • Piloting

and Simulation

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Analyze Overview
Hypothesis Tests Value-Add Analysis

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Root Cause / Effect

Tools Used
       

Root cause:

Value Add Analysis One-Way ANOVA Two-Way ANOVA Pareto Plots Simple Linear Regression Multiple Regression Test for Equal Variance Scatter Plots

       

C&E Matrix Complexity Cause & Effect Diagram Kaizen/Quick Wins FMEA Control/Impact Chart T-Test Other

Effect

Root cause:

Effect

Root cause:

Effect

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To-Be Process Map
Client Mgr Notify HR of employee exit date
Avg. Cycle time = 0 days

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Client HR

Places information into HR EXIT database

Client Contact

Utilize web tool to submit a delete request to vendor

Avg. Cycle time = 1 day

NT Admin

Access database daily

Create Work Request

Avg. Cycle time = 1 day Avg. Cycle time = 1 day Avg. Cycle time = 1 day

Email Vendor

Delete account

Admin

Admin closes work request and manager notified

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Evaluating Solutions Against Criteria
Example: Independent Solutions
Solutions
Solution A Solution B Solution C Solution D Solution E 20% 5%
#1 #2 #3 #4

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% Contribution of Root Cause to Process Deficiency Root Cause #1Root Cause #2 Root Cause #3 Root Cause #4 40% 25% 20% 10%

250 200 150 100

100% 80% 60% 40% 20% 0%

80% 20% 30% 80% 100%

50 0

Root Causes

Solution A = a 32% reduction in defects (80% of 40%) Solution B = a 21% reduction in defects (20% of 25% + 80% of 20%)=(5%+16%) Solution C = a 17.5% reduction in defects (30% of 25% + 100% of 10%)=(7.5%+10%) Implementing Solutions A & B achieve a 53% reduction in defects. (Assumes no interaction effects of the solutions) Original goal is a 50% reduction.

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Design of Experiments (DOE) Results
Main Effects Plot (data means) for Mean
60 45 30 Training Dollars J ets 15 0 -1 60 45 30 15 0 -1 1 -1 1 Employees 1 -1 %Overbooked 1

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Fractional Factorial Fit: Response = Mean Estimated Effects and Coefficients for Mean (coded units) Term Effect Coef SE Coef T Constant 29.64 0.08610 344.22 Training 0.10 0.05 0.08610 0.60 Jets -0.08 -0.04 0.08610 -0.44 Employee -55.93 -27.97 0.08610 -324.81 % Overbo 0.36 0.18 0.08610 2.11 Training*Jets -0.10 -0.05 0.08610 -0.57 Training*Employee 0.05 0.02 0.08610 0.28 Training*% Overbo 0.09 0.05 0.08610 0.53 Jets*Employee 0.10 0.05 0.08610 0.57 Jets*% Overbo -0.40 -0.20 0.08610 -2.34 Employee*% Overbo 0.17 0.09 0.08610 1.01

P 0.000 0.573 0.676 0.000 0.088 0.591 0.788 0.619 0.591 0.066 0.359

Mean of Mean

The number of Employees is the biggest driver for Mean Time Late
Pareto Chart of the Standardized Effects
(response is Mean, Alpha = .05) 2.6 C BD D CD T erm A BC AB AD B AC 0 50 100 150 200 250 Standardized Effect 300 350
F actor A B C D Name Training Dollars J ets Employees % O verbooked

Employee is the only statistically significant factor for Mean besides the constant term. All other main effects & 2-way interactions have a p-value > 0.05.

Pareto Chart for Mean Time Late

Ymean=f(x) equation is:

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Ymean = -27.97(Employee) + 29.64

Number of Employees is the only significant factor for Mean - Time Late Bonacorsi Consulting

Pugh (Selection) Matrix
Benchmark Option Importance Rating

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Pugh Matrix
Solution Alternatives Alternative 2 Alternative 3 Alternative 5 + S + S + S + 4 3 3 20 15 5 Alternative 1 Alternative 4 + S + + S + 4 4 2 23 17 6 Concept Selection Legend Better + Same S Worse -

Key Criteria Criteria 1 Criteria 2 Criteria 3 Criteria 4 Criteria 5 Criteria 6 Criteria 7 Criteria 8 Criteria 9 Criteria 10 Sum of Positives Sum of Negatives Sum of Sames Weighted Sum of Positives Weighted Sum of Negatives Totals

4 2 3 2 5 6 10 8 5 6

+ S + S + S + 4 3 3 22 14 8

S + S + S + 3 4 3 19 18 1

+ S + S + S 3 4 3 16 20 -4

+ + + + S + S + 6 2 2 27 11 16

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Benefit-Effort Matrix
Benefit 16 7

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1 3

8

12

High

Highly Desirable Opportunities Projects in upper left are the most desirable projects. Potentially Desirable Opportunities Projects in the upper right are potentially desirable, but usually require more analysis to ensure good decision making. “Potential Quick Hits” Possibility for Kaizen event or small GB project

4
Med

9

13 6

17

10

Low

11

14 5 15
Med

2 Effort

Low

High

Least Desirable Opportunities Projects in the lower right are the least desirable.

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Stakeholder Analysis

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Influence Strategy

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Pull System
1. Always pull stock from bin with GREEN card if it is there. 2. Store/supply room replaces stocked items and switches RED card to items just replaced. 3. The cards are attached to magnetic strip labels (for ease of movement for resizing).

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Bin 1 Bin 1 Bin 1Bin 2 Bin 1 Bin 2 Bin 1Bin 2 Bin 1Bin 2 Bin 1 Bin 2 Bin 1 Bin 1Bin 2 Bin 1 Bin 2 Bin 1 Bin 2 Bin 1 Bin 2

Order Cards

2-Bin Mailbox

Bin 1 Bin 2 Bin 1 Bin 2 Bin 1 Bin 2 Bin 1 Bin 1 Bin 2

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Setup Reduction

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Kaizen

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Monday
8AM
Measure

Typical Kaizen Weekly Schedule

Tuesday

Wednesday
Future State Des Mid-Week Review Future State Des

Thursday

Friday
Finalize Future State

10AM

Finalize Pre-Event Prep

(Present State Analysis)

Implement Improvements Perform Process Participant Training Tweak Design

Complete Training on Std Work

Implement Improvements Analyze

Final Presentation

12PM

Lunch
Kaizen Kickoff

Lunch

Lunch

Lunch

Lunch and Celebration

2PM

Lean/Kaizen Training Specialized Training

Analyze Brainstorm Ideas Idea Effort/Impact Idea Prioritization Future State Design

Implement Improvements Perform Process Participant Training Tweak Design

Create and Implement Standard Work Measure Future State Calculate Actual Benefits

4PM

Measure (Present State Analysis)

6PM

Process Part Design Review

Create Final Presentation

St 1 ep
Tim e

St 2 ep
Tim e

St 3 ep
Tim e

St 4 ep
Tim e

St 5 ep
Tim e

St 6 ep
Tim e

A iv y ct it 1 -1
Tim e

A iv y ct it 2 -1
Tim e

A iv y ct it 3 -1
Tim e

A iv y ct it 4 -1
Tim e

A iv y ct it 5 -1
Tim e

A iv y ct it 6 -1
Tim e

A iv y ct it 1 -2
Tim e

A iv y ct it 2 -2
Tim e

A iv y ct it 4 -2
Tim e

A iv y ct it 5 -2
Tim e

A iv y ct it 6 -2
Tim e

A iv y ct it 1 -3
Tim e

A iv y ct it 2 -3
Tim e

A iv y ct it 4 -3
Tim e

A iv y ct it 5 -3
Tim e

A iv y ct it 1 -4
Tim e

A iv y ct it 2 -4
Tim e

A iv y ct it 4 -4
Tim e

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Pilot Plan
Pilot Test

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Description
Sample Check-in Data Sets entered in HandChek device • Sample Data Sets Transmitted to Hot-Chek System – All Hotel Floors, All Hotel Rooms • Confirmation Data Received from Hot-Chek to Hand-Chek Device – All Hotel Floors &Rooms
• • •

Success Criteria
Data Set Entry Accuracy < 3.4 DPMO • Data Time < 6 Sec • Data Set Transmission/ Reception Accuracy < 3.4 DPMO Data Set Entry Accuracy < 3.4 DPMO • Data Set Entry Time < 6 Seconds • Data Set Transmission/ Reception Accuracy < 3.4 DPMO • Design Scorecard CCRs

Test Team
SB, plus Hot-Chek tech rep

Schedule
Start 3/1 Complete 3/3

Hand-Chek/ Hot-Chek Interface Test

Check-in Verificatio n Test

• •

• •

Check-in Validation Test

• • •

Sample Guest Data Entered in Hot-Chek System (variety of room requirements) “Guests” (Hotel Employees) Walked Through Check-in Process (90% Pre-Registered, 10% Non-Pre-Registered) Volume Stress Test – Simulated Arrival 20 Guests in a “Tour Bus” Process Measurements recorded via Observer (see Design Scorecard); “Guest” Observations Recorded. 25 Guests invited to experience hotel check-in Guests “pre-registered” with their room requirements in Hot-Chek system. Guests Walked Through Check-in Process (90% Pre-Registered, 10% Non-Pre-Registered) Process Measurements recorded via Observer (see Design Scorecard) Guests Debriefed Following Experience.

SB, + 6 Check-in Staff

Start 3/6 Complete 3/7

Data Set Entry Accuracy < 3.4 DPMO • Data Set Entry Time < 6 Seconds • Data Set Transmission/ Reception Accuracy < 3.4 DPMO • Design Scorecard CCRs

SB, + 6 Check-in Staff

Start 3/10 Complete 3/10

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Verify Pilot Results
Measurement Plan: Measure CTQs Process time
Plan Target

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x

Pilot

s 0.05 min.

Comments

1 minute

0.5 min.

CTQs Data Transmission < 3.4 DPMO Accuracy
Pilot Observations: Rooms

100 DPMO

1) Data Reception Weak – 12th Floor, SW 2) Data Entry Sequence Confusing

GAP Analysis/Root Causes: 12th Floor

1) Insufficient radio transceivers, 2) Order of questions confusing staff

Follow-up Actions:

1) Add four more radio transceivers 2) Resequence guest questions

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Summarizing Pilot Conclusions

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Once all the pilot data has been collected and the results verified, the team can determine the next steps toward solution implementation. Only after an objective and comprehensive assessment of the pilot can responsible “next step” decisions be made. Some questions a team should ask upon the completion of a pilot to help guide them toward identification of the proper next steps are:
     

Did pilot have anticipated results? Was the plan for conducting the pilot effective? What improvements can we make to the solution? Can the solution be implemented “as-is”? Should it be? Can the solution remain in place at the pilot location? What lessons learned and best practices can we apply during solution implementation? Did the solution achieve the required design goals?

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FMEA
  

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Risk Analysis recommended actions (Key Speaking Points) Rating Index Total Current RPN Risk

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Value Stream Map (VSM) “Future State”
< ERP >
Supplier Customer

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Questions
What is the VA to NVA percentage? <Right Click, and select Add Text>

<Step1>
1

<Step3>
2

<Step3>
1

What is the Improved state VSM?

<Right Click, and select Add Text>

What is the Improved state VSM? <Right Click, and select Add Text>

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Kaizen - Action Workout
Planning
    

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Execution
    

Before
    

? ? ? ? ?

? ? ? ? ?

? ? ? ? ?

Root Causes / Quick Wins

Graphical Analysis
    

After
    

Root cause:
 Quick

? ? ? ? ?

? ? ? ? ?

Win #1

Root cause:
 Quick

Win #2

Root cause:
 Quick

Win #3

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Multi-Generational Project Plan

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Cost/Benefit Analysis
 

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Identify the various solution options Describe the Type 1 solution $ gained from the expected process improvement Calculate the total cost of ownership to fully implement the solution Cost/Benefit Analysis
Financial Benefits: First 12 months after Budget Increase Implementation Expense Reduction Loss Avoidance Other Total Benefits Financial Cost: Labor Pre-Implementation & Technology first 12 months after Materials Other Total Cost Cost/ Benefit Solution A
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Solution B
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Solution C
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

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Business Impact
  

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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 Replicated Estimate
• 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: ?

Revenue  Enhancement Expenses  Reduction Loss  Reduction Cost  Avoidance Total Savings

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Business Impact Details
 

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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 ) 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)

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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Current Status

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Key actions completed Issues Lessons learned Communication s, team building, organizational activities

 

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Next Steps
   

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

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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Improve Summary

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Solution Selection Criteria
How the solution was determined: • What was the solution selection tool used? • What project management tools were used? • Cost/benefit analysis? • Include any other tools or methods used 1. ? 2. ? 3. ? 4. ? 5. ?

Pilot and Implementation Plan

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Improve
             

Stop

Tollgate Checklist

Tollgate Review

Has the team developed improvement solutions for the critical X’s, piloted the solution and verified that the solution will solve the problem?

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What techniques were used to generate ideas for potential solutions? What narrowing and screening techniques were used to further develop and qualify potential solutions? What evaluation criteria were used to select a recommended solution? Do the proposed solutions address all of the identified root causes, or at least the most critical? Were the solutions verified with the Project Sponsor and Stakeholders? Has an approval been received to implement? Was a pilot run to test the solution? What was learned? What modifications were made? Has the team seen evidence that the root causes of the initial problems have been addressed during the pilot? What are the expected benefits? Has the team considered potential problems and unintended consequences (FMEA) of the solution and developed preventive and contingency actions to address them? Has the proposed solution been documented, including process participants, job descriptions and if applicable, their estimated time commitment to support the process? Has the team developed an implementation plan? What is the status? Have changes been communicated to all the appropriate people? Has the team been able to identify any additional ‘Quick Wins’? Have ‘learning's’ to-date required modification of the Project Charter? If so, have these changes been approved by the Project Sponsor and the Key Stakeholders? Have any new risks to project success been identified and added to the Risk Mitigation Plan?

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

Improve

Enter Name Here Enter Name Here
Sponsor / Process Owner

Enter Name Here
Deployment Champion

Green Belt/Black Belt

Enter Name Here
Financial Representative

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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 Steven Bonacorsi is a Senior Master law.

Black Belt instructor and coach. © 2006 by Bonacorsi Consulting, L.L.C. Steven Bonacorsi has trained All Rights Reserved. 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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