six sigma dmaic define 1
TRANSCRIPT
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
IXCUSTOMER & COMPETITIVE INTELLIGENCE
FOR SYSTEMS INNOVATION & DESIGN
S IGMAS DEPARTMENT OF
STATISTICSDR. RICK EDGEMAN, PROFESSOR & CHAIR – SIX SIGMA BLACK BELT
[email protected] OFFICE: +1-208-885-4410
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
IXS IGMAS DEPARTMENT OF
STATISTICS
DMAIC: The Define Phase
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
IXS IGMAS
DEPARTMENT OF
STATISTICS
a highly structured strategy for acquiring, assessing, and applying customer, competitor, and enterprise intelligence for the purposes of product, system or enterprise innovation and
design.
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
TheVillain
level DPMO CP3
2 308,537 Not Applicable3 66,807 25%-40% of sales4 6,210 15%-25% of sales5 233 5%-15% of sales6 3.4 < 1% of sales
Each sigma shift provides a 10% net income improvement
Cost of Poorly Performing Processes
(CP3)
Why is Six Sigma Important?
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Six Sigma Innovation
Structured Problem-Solving with DMAIC:The Analytic Heartbeat of Six Sigma
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
The DMAIC Model
Define Control
Measure ImproveAnalyze
Voice of the Customer
Institutionalization
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Six Sigma Road Map: R DMAIC SI
Breakthrough Stage Strategy Phase Objective
Identification Recognize Identify Key Business
Define Issues
Characterization Measure Understand Current
Analyze Performance Levels
Optimization Improve Achieve Breakthrough
Control Improvement
Institutionalization Standardize Transform How Day-to
Integrate Day Business is Conducted
Bre
akth
rou
gh
Str
ate
gy
Bla
ck B
elt
Pro
jects
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Define
Control
Improve Analyze
Measure
Six Sigma Innovation & the DMAIC
Algorithm
Define the problem and customerrequirements.Measure defect rates and documentthe process in its current incarnation.
Analyze process data and determinethe capability of the process.
Improve the process and removedefect causes.
Control process performance andensure that defects do not recur.
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Six Sigma Projects Begin with aDetailed Assessment of Customer Needs
DEFINE:
A. Identify project CTQs: what does the customer think is essential?
B. The Team Charter represents the business case for the project.
C. Define and build a process map that relates measurableinternal processes to customer needs.
These will now be addressed in greater detail
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Define:A. Identify project CTQs: what does the customer think is
essential?Voice of the Customer (VOC)
That which is critical to the quality of the process according to your customer.
VOC tools:Surveys
Focus GroupsInterviews
Customer Complaints
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Advantages: Lower cost approach Phone response rate 70-90% Mail surveys require least
amount of trained resources for execution
Can produce faster results
Disadvantages:Mail surveys can get incomplete
results, skipped questions, unclear understanding
Mail surveys 20-30% response ratePhone surveys: interviewer has
influential role, can lead interviewee, producing undesirable results
Advantages:Group interaction generates
informationMore in-depth responsesExcellent for getting CTQ
definitionsCan cover more complex
questions or qualitative data
Disadvantages: Learning’s only apply to those
asked, difficult to generalize Data collected typically qualitative
vs. quantitative Can generate too much anecdotal
information
Focus GroupsFocus Groups
SurveysSurveys
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Advantages:Specific feedback Provides opportunity to respond
appropriately to dissatisfied customer
Disadvantages: Probably not adequate sample
size May lead to changing process
inappropriately based on 1-2 data points
Advantages:Can tackle complex
questions and a wide range of information
Allows use of visual aidsGood choice when people
won’t respond willingly and/or accurately by phone/mail
Disadvantages:Long cycle time to completeRequires trained, experienced
interviewers
Customer ComplaintsCustomer Complaints
InterviewsInterviews
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six SigmaSurvey Development
Information What do I need to know when this study is
complete? What is my budget? What information will the survey provide that
cannot be obtained elsewhere? How much time do I have to complete the
study? Who will be surveyed and how do I reach these
people?
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Survey Development Steps • Review survey objectives.
• Determine appropriate sample.• Identify specific areas of desired information.• Write draft questions and determine measurement scales.• Determine coding requirements.• Design the survey.• Pilot the survey–both the individual questions as well as the
total survey against the objectives.• Revise and finalize.
Creation of Electronic Surveyswww.zoomerang.com or
www.surveyz.com
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Define:A. Identify project CTQs: what does the customer think is essential?
• Who is the customer and what do they want? This may be derived from:Business Goals; Complaint Information; Customer Surveys or Focus Groups;
Benchmarking Data; Executive-Level Discussions; or Job-Specific Discussions.
We need a “Process / Product Drill-Down Tree”Y = f(X1, X2, …)
“Big Y” is a function of X1, X2, … where the X’s are internal process characteristicsor ‘CTQs’ that can be controlled. CTQs represent customer desired outcomes.
Drill Down Trees Integrate Customer CTQs and Business Strategy.
In this drill down tree the “Big Y” is decomposed into “little y’s” that are subprocesses of Y.This “drill down” continues through DEFINE and MEASURE. The X’s are part of ANALYZE.
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six SigmaProcess/Product Drill Down Tree
Black Belts/Green Belt work on removing defectson selected CTQ’s by improving processes.
Black Belts/Green Belt work on removing defectson selected CTQ’s by improving processes.
• Customer requirements (customer CTQ’s)
• Process requirements (process CTQ’s)
How Customer CTQ’s Become Project CTQ’s
Important To Our Customer
Sub -Process/Service
B
Sub -Process/Service
C
Product/Process/Service
Single Cell
Projects
Process -Based Projects
CT
Q P
roje
cts
Con
trol
labl
e B
y U
s
Define product and/or process tree
and identify product and process CTQ’s
Define product and/or process tree
and identify product and process CTQ’s
Sub -Process/Service
A
Process 4
Process 1
Process 2
Process 3
CTQ 9CTQ 1 CTQ 2 CTQ 3 CTQ 4 CTQ 5 CTQ 6 CTQ 7 CTQ 8
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Define:B. The Team Charter represents the business case for the project.
a. Define the BUSINESS CASE for the project – that is, what is its importance?What are the consequences of NOT doing the project? What are the priorities?How does it fit with business initiatives of the organization?
b. Provide a problem statement that describes the opportunities for improvementand a goal statement that defines the improvement objective.
Problem Statement + Goal Statement = Team Focusc. Define the Process – place appropriate boundaries on the process, that is itslimitations and constraints.
d. Select the team – this should be carefully done and needs-based. Also necessaryis determination of the role, responsibilities and expectations of each team member.
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
SMART•Problem & Goal Statements
Should be:Specific
Measurable
Attainable
Relevant
Time-Bound
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Define: The Team Charter Business Name: Project Name:Project Charter:
Prepared by: _____________ Version: ___________ Date: ________
` Champion: _____________ Process Owner: _____________________Team Leader: ____________ Coach: ___________________________
Approval Signatures
Champion: ______________ Process Owner: _____________________Other Stakeholder : ________ Other Stakeholder:___________________
as needed as needed
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Define: The Team Charter
Table of Contents
1. EXECUTIVE SUMMARY …………………………………………………3 2. PROJECT OBJECTIVES…………………………………………………3 3. PROJECT SCOPE ……………………………………………………..…3 4. BUSINESS CASE …………………………………………………………3 5. PROJECT ORGANIZATION ……………………………………………3 6. SCHEDULES……………………………………………………………….4 7. COMMUNICATION PLAN ……………………………………………...4 8. PROJECT CONTROL PROCEDURES ……………………...…………4 9. PROJECT ASSUMPTIONS ……………………………..………………4 10. CONFLICT RESOLUTION ………………………………………………. 5
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Define: The Team Charter1.0 EXECUTIVE SUMMARY
Provide a brief description of the project, its goals and objectives. This is the “elevator speech” for the project.
2.0 PROJECT OBJECTIVES
Describe what the project hopes to accomplish. If this project’s purpose is to design a new product or service, describe same. At a high-level, describe the potential customers of the new product/service and their needs.
Include goals or targets for the new product or service (customer and business related). If the project’s purpose is to redesign an existing product, service or process, develop problem and goal statements. Attempt to quantify the “pain” and associated goals using data.
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Define: The Team Charter3.0 Project ScopeDescribe the project deliverables (i.e. a new product or redesigned and implemented business process) and the boundaries of the project. This is a further definition of the what is to be designed / redesigned. Scope aspects to consider include products / services and/or processes to be designed / redesigned, facilities to be employed, organizational structures or labor agreements, compensation plans, and use of existing hardware/ software platforms. As the project progresses, the scope may be refined via a Multi-Generational Product / Process Plan (MGPP). Include the MGPP here.
4.0 Business CaseDescribe why this particular project is important to the business. This may include a description of a business opportunity, and / or a cost/benefit analysis. This latter analysis may include tangible and intangible benefits and costs. Assumptions made should be clearly documented. This section may also include a risk analysis, focused on factors that could act as barriers to the projects success. The risk analysis should identify the risk factor, and mitigation strategies identified to manage the risks.
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Eight Steps for Establishing Project Boundaries
5. Map your process– Map the process at it works today (as is).– Map the informal processes, even if there is no formal, uniform process in
use.
6. Determine where in the process the CTQ’s can be most seriously affected
– Use a detailed flowchart– Estimate which steps contain the most variability
7. Evaluate which CTQ’s have the greatest opportunity for improvement
– Consider available resources– Compare variation in the processes with the various CTQ’s– Emphasize process steps which are under the control of the team conducting
the project
8. Define the project to improve the CTQ’s you have selected– Define the defect to be attacked
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Define: The Team Charter5.0 PROJECT ORGANIZATION
Define how the project is to be run. This includes who will work on the project, roles & responsibilitiesof project members and supporting staff (i.e. Master Black Belts) and reporting relationships to the champion/management. A project organization chart and roles and responsibilities matrix may be shownhere. The matrix should include each role, the role’s responsibilities, the business resource(s) assigned to the role and the level of commitment for each resource. 6.0 SCHEDULES & RESOURCES
Describe when the project should be completed and the key project milestones. Initially, the projectcompletion date (define what “completion” means) and milestones based on the steps of DMADV may beincluded. As the project is better defined, more detailed project plans may be included in Gantt / PERT format. The DMADV Tollgates may be used to develop a work-breakdown structure for the project. Based on the resource commitments identified in Section 5.0 of the Charter, the schedule can be resource loaded (either to determine the “finish date” based on available resources, or to identify required resources based on a targeted completion date).
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Define: The Team Charter 7.0 COMMUNICATION PLAN Define how the project team will communicate with business leaders, staff and other stakeholders. A table such as shown below is an easy way of summarizing the communication plan. Included are examples of typical communication types:
CommunicationType
Audience Frequency Responsibility Delivery Mechanism
Task Status Project Team
Weekly Project Manager E-Mail
Phase Completion Champion / Review Board
End of each Phase
Project Manager Project Phase Meeting
Design Outputs Various As Needed Project Team Design Review Meeting
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Define: The Team Charter8.0 PROJECT CONTROL PROCEDURES: Describe how the project will be controlled andmanaged. Depending on the project’s scope, risk and perhaps regulatory issues, the extent of thenecessary control processes will vary. Some control processes to consider include:
Quality Assurance Plan Test Plan Progress Control Change Control Issue Resolution Problem Reporting & Resolution Risk Management Change Acceleration Processes
9.0 PROJECT ASSUMPTIONS: This section should document any assumptions that have notpreviously been covered and that are important to the success of the project. These may includemarket or organizational conditions, availability of resources or others.
10.0 CONFLICT RESOLUTION: Describe and Contractually Commit to the expectations ofeach team member, deliverables required of each member, dates and formats of those deliverablesacceptable and unacceptable means and forms of communication, and agreed upon means of resolving project-related conflicts among team members.
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Project Scope On what process will the team focus on? What are the boundaries of the process we are to improve?
Start point? Stop point? What resources are available to the team? What (if anything) is out-of-bounds for the team? Under what (if any) constraints must the team work? What is the time commitment expected of team members? What are the advantages to each team member for the time
commitment?
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six SigmaEight Steps for Establishing Project
Boundaries1. Identify the customer
– Who receives the process output? (May be an internal or external customer)
2. Define customer’s expectations and needs– Ask the customer– Think like the customer– Rank or prioritize the expectations
3. Clearly specify your deliverables tied to those expectations– What are the process outputs? (Tangible and intangible deliverables)– Rank or prioritize the deliverables– Rank your confidence in meeting each deliverable
4. Identify CTQ’s for those deliverables– What are the specific, measurable attributes that are most critical in the
deliverables?– Select those attributes that have the greatest impact on customer
satisfaction.
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
The SIPOC Model
Suppliers Customers
Inputs OutputsProcess
Steps
Inform Loop
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Six Sigma COPIS Model
Customers Suppliers
Outputs InputsProcess
Steps
The Voice of the Customer (VOC) is aggressively sought and rigorously evaluated and used to determine needed outputs and hence the optimal process configuration needed to yield those outputs and their necessary inputs for which the best suppliers
are identified and allied with.
From Concept to Market: the Voice of the Customer
How does Six Sigma Work?
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Define:C. Define and build a process map that relates measurable internal
processes to customer needs. (COPIS)
The High-Level Process Mapa. Displays the relationship between the customer and the process;
b. Identifies key inputs; and c. Identifies key customer requirements.C – customer’s key requirements; O – outputs; P – process steps; I – Inputs; S – suppliers
Customers Suppliers
Outputs InputsProcess
Steps
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Process Mapping: Top-Down Flowchart – The “What’s” a. List the fundamental process steps. Limit your list to about five major steps. b. Write these down, in the order they occur, from left to right across the top of a
writing surface.c. Under each major step, list – in the order of occurrence, the major sub-processes
that compose the major step (again, only five or six of these).
A B C D EA.1
A.2
A.3
A.4
B.1
B.2
C.1
C.2
C.3
E.1
E.2
E.3
D.1
D.2
D.3
D.4
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Process Mapping: Deployment Flowchart – “What’s” & “Who’s” – a. List the fundamental process steps in the order they occur. b. Across the top of your writing surface, list the names of the people
or organizations involved in the process.c. Beneath the name(s) of those responsible for the first step, draw a
box and list the step in that box.d. If any other entities assist or advise those with primary responsibility
for that step, list the entity name and draw an oval around it. Connect these ovals to the box.
e. Repeat this process for the second and subsequent steps.
In this way we will have both the “what” and “who” listed.
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma D
ep
loym
en
tF
low
ch
art
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5
Step A
Step B
Step C
Step D
Step E
Step F
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
Process Mapping: Detailed Flowchart
1. Draw the first symbol and record adescription of the process step therein.
2. Do similarly with all remaining processsteps, connecting these to indicateprocess flow.
3. Stop when you have mapped the (portion of the) process of interest.
Each symbol should represent only one action or one “yes/no” decision.
Operation
Measurement
Input / Output
Decision
Transportation Start / Stop
Start / Stop
Operation
Document
DelayOperation
Decision
Yes
No
Operation
No
Decision
YesOperation
DecisionNo
Yes Yes Storage
Client, Enterprise & Competitive Intelligence for Product, Process & Systems Innovation
Dr. Rick L. Edgeman, University of Idaho
Six Sigma
IXS IGMAS DEPARTMENT OF
STATISTICS
End of Session