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

“Descriptive Project Title”
Customer Profile – 28,000 Retail Business
Process Data

Control

Process Capability Analysis for Average Spee
LSL USL
* 0.0000

Process Capability – Before
ST LT

Business Problem & Impact

USL Target LSL

20.0000

Average speed to answer (ASA) was 1 minute. As call volumes Mean 71.4444 Sample N increased 30% with a recent acquisition, end user downtime 117 StDev (ST) 38.9880 was costing the company US$500K annually. The target StDev (LT) 50.6272 average speed to answer was under 30 seconds.
Potential (ST) Capability

Measure & Analyze

Cp CPU CPL

0.09 -0.44 0.61

-0.44 Data Collection: Speed to answer on all calls was Cpk measured. Cpm * -100 The existing process sigma was 2.4. Overall (LT) Capability Root Causes: Nature of problem and time of call were identified Pp 0.07 PPU -0.34 as root causes. Process Data PPL 0.47

0

100

200

300
PPM < LSL PPM > USL PPM Total

400

Observed Performance PPM < LSL PPM > LSL USL PPM Total 948717.95 948717.95

Expected ST Performance PPM > USL USL PPM Total 906498.25 939938.64

Expected LT Performance

0.00 PPM < LSL Process Capability – 33440.39 After

79094.9

845218.9

924313.9

Improve & Control

USL Ppk T arget LSL

20.0000 -0.34 * 0.0000

Mean Cross-training on call types was performed and staffing was 14.7929 Sample N 169 arranged around peak call times. Metrics are reviewed weekly StDev (ST ) 3.38716 StDev (LT ) 4.61648 and posted to an IT dashboard. Potential (ST ) Capability

ST LT

Results/Benefits

Cp CPU CPL

0.98 0.51 1.46 0.51 *

Cpk After the 3 month project, the customer saved US$150K, or Cpm 30%, as a result of reduced end user downtime.

0
PPM < LSL PPM > USL PPM T otal

10
Observed Performance 0.00 130177.51 130177.51

20
Expected ST Performance PPM < LSL PPM > USL PPM T otal 6.29 62109.19 62115.48

30
PPM < LSL PPM > USL PPM T otal

40

Overall (LT ) Capability Pp PPU PPL Ppk 0.72 0.38 1.07 0.38

Expected LT Performan

67

A Savings of US $150k in 2007!
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Project “Storyboard” – Example
Define
Project Charter 1.2 Day CTQ Gap BUS CASE: Be #2 Fin Service Provider GOAL: Reduce Loan/Lease CT from 9.2 to 8.0 days by July 1 FIN IMPACT: $2.7M per year

Control

Sigma Performan ce Level of 1.3

Analyze

Measure

Contro l

Improv Loan or e
Lease Screen Entry Color Printout s Reward Work & Turnover, Waiting, & Automation Affect CT; Job Aids affect Variation in CT s& Recog Flex Time

Pilot Plan

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DefineMeasure Analyze Improve Control

LEAN SIX SIGMA

Lean Six Sigm Program Nam

Project Charter
Problem/Goal Statement Problem: Describe problem in non-technical terms
Statement should explain why project is important; why working on it is a priority Goal: Goals communicate “before” and “after” conditions  Shift mean, variance, or both?  Should impact cost, time, quality dimensions  Express goals using SMART criteria  Specific, Measurable, Attainable, Resource Requirements, Time Boundaries  Explain leverage and strategic implications (if any)

Control

Financial Impact

State financial impact of project
  

Expenses Investments (inventory, capital, A/R) Revenues

 

Separate “hard” from “soft” dollars State financial impact of leverage opportunities (future projects)

Team
    

PES Name PS) PS Name DC Name GB/BB Name MBB Name

Project Executive Sponsor (if different from Project Sponsor/Process Owner Deployment Champion Green Belt/Black Belt Master Black Belt Role % Contrib. XX XX XX XX XX XX YB GB PS YB Not Trained Not Trained LSS

Tollgate Define: Measure: Analyze: Improve: Control:

Tollgate Review Schedule
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

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

Core Team Training
   

Team Member 1 SME Team Member 2 Team Member 3 Team Member 4 Team Member 1 TM SME SME BFM

Review high-level schedule milestones here:
  

Phase Completions Tollgate Reviews Trials

Extended Team

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Measure Overview
Process Capability
      

Control

Graphical Analysis
I -MR Chart of Delivery Tim e
40 UC L=37.70 In ivid a V lu d u l a e 35 30 25 20 1 28 55 82 109 LC L=20.56 136 Observation 163 190 217 244 _ X=29.13

CTQ: ? Unit (d) or Mean (c): ? Defect (d) or St. Dev. (c): ? DPMO (d): ? Sigma (Short Term): ?
M ovin R n e g a g

Sigma (Long Term):? MSA Results: show the percentage result of the GR&R, AR&R or other measurement systems analysis carried out in the project

10.0 7.5 5.0 2.5 0.0 1 28 55 82 109 136 Observation 163 190 217 244

UC L=10.53

__ MR=3.22

LC L=0

Root Cause / Quick Win
 Root

Tools Used
      

cause: cause: cause:

Detailed process mapping Measurement Systems Analysis Value Stream Mapping Data Collection Planning Basic Statistics Process Capability Histograms

      

Time Series Plot Probability Plot Pareto Analysis Operational Definitions 5s Pull Control Charts

Quick Win #1

 Root

Quick Win #2

 Root

Quick Win #3

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Analyze Overview
Hypothesis Tests Value-Add Analysis

Control

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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Improve Summary

Control

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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Control Summary
Control/Response Plan Highlights • ? • ? • ? • ? • ?
Include text here to explain highlights of the plan to monitor and respond to variation in y’s and x’s

Control

Benefits of Project • ? • ? • ? • ? • ?
Summarize benefits to the internal/external customers here. Start tracking benefits from date of implementation of Improve Phase Improvements.

Sigma Levels/Improvements
Units Defects DPMO Mean* Std. Deviation* Sigma (ST) Sigma (LT)
* Continuous data only

Communication & Translation
Documentation • Provide any necessary training Translation project within/ outside of region/function: • Any resulting spin-off projects initiated • Anything done to carry out projects in other locations Communication • Communicate project results with customer • Communicate results with the business
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Baseline ? ? ? ? ? ? ?

Improved ? ? ? ? ? ? ?

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Business Impact
  

Control

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
 

Control

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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Lessons Learned
1. ? 2. ? 3. ? 4. ? 5. ? 6. ? 7. ? 8. ? 9. ? 10.?

Control

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Sign Off

Control

Once the project is complete and has been reviewed by the Green Belt/Black Belt or other Quality mentor, the project should be reviewed with Deployment Champion, Project Sponsor, Process Owner, Master Black Belt and other project or process stakeholders. In addition, financial benefits of the project (or the method used to estimate financial benefits) should be confirmed by your Process Owner and/or finance representative. • Policies & Procedures for the Improve and Control phases were documented and
communicated on MM/DD/YY • I understand the New Policies and Procedures • I understand and take responsibility for monitoring the Defect Measurements as delineated in the Control Plan • I will report the progress on this subprocess on a regular basis to the customer (internal or external) • I have reviewed this project’s financial benefits with the Deployment Champion, Sponsor and Finance • I understand the corrective action procedure and am responsible for ensuring that action items are completed toEnter Nameand capture the financial benefits hold the gains Here Enter Name Here Enter Name Here
Executive Director Financial Representative Green Belt/Black Belt

Enter Name Here
Sponsor / Process Owner

Enter Name Here
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Enter Name Here Enter Name HereEnter Name Here
“Other” Key Stakeholder “Other” Key Stakeholder Master Black Belt

Deployment Champion

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Project Contributors
Steering Team
 <Name>: <Contribution>  <Name>: <Contribution>  <Name>: <Contribution>  <Name>: <Contribution>  <Name>: <Contribution>

Control

Support Team
 <Name>: <Contribution>  <Name>: <Contribution>  <Name>: <Contribution>  <Name>: <Contribution>  <Name>: <Contribution>

Project Ownership Team
 <Name>: <Contribution>  <Name>: <Contribution>  <Name>: <Contribution>  <Name>: <Contribution>  <Name>: <Contribution>

Deployment Team
 <Name>: <Contribution>  <Name>: <Contribution>  <Name>: <Contribution>  <Name>: <Contribution>  <Name>: <Contribution>

Enter Key Slide Take Away (Key Point) Here
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Sample Team Member Certificate

Control

<Name>
Has Successfully Participated In The

“Project Name”
Your Commitment to the Program Name is Recognized as the Driving Force Behind the Future Success of Your Organization, Incorporated.
Month XX, XXXX to Month XX, XXXX

Month XX, XXXX
Team Leader Date

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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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