Define Phase GB Module #8

1. Define Phase GB Module #8

2. Continuous Improvement Road Map Define Improve • Define CTQ • Determine Current State • Verify Effects of Key inputs with DOE’s • Determine Optimum Settings Analyze • Evaluate Existing Control Plan • Using statistical methods to • determine potential key inputs • Prioritize key input variables Measure • Determine Key Input / Output Variables • Perform MSA • Calculate initial process capabilities Control • Update Control Plan • Verify Improvements N

3. Define Phase • Scope out the Project • Define Customer • Define Critical to Quality Characteristics (CTQs) • Form a Team

4. Define - Toolbox • Project Scoping • Tools for Scoping • X-Y Diagram, High Level Process Map, Cause and Effect Diagram (fishbone), Cause and Effect Matrix • Surveys • Pareto Charts

5. Section Objectives • Understand the importance of Six Sigma project scoping • Determine the keys and tools to properly scope a Six Sigma project • Understand the steps in the Define process and how to work through them • Learn the importance of Critical to Quality Definitions • Understand how CTQ ties to metrics

6. VisteonContinuous ImprovementProject Scoping

7. Responsibility for Project Scoping Project Champion Primary Lead Black / Green Belt Secondary Lead The Project Champion has the ultimate responsibility for effectively scoping a project however the Black / Green Belt has a vested interest and should be included in the process

8. Primary Lead Project Champion Black / Green Belt Secondary Lead Support for Project Scoping Deployment Director Master Black Belts Experienced Black Belts The Project Champion and Black / Green Belt should use their available resource pool in scoping projects

9. Definition of a Six Sigma Project • Problem Solving – The project should address a problem with an unknown solution that addresses an organizational performance issue • problems with unknown solutions are for black belts – problems with known solutions are for project managers • Goals – The project should have clear numeric goals tied directly to a well defined set of metrics that correspond to the opportunity • Project Tracking – Progress should be tracked through the well defined set of metrics • Business Benefit – The project should culminate in a measurable benefit in terms of cost, schedule and /or quality • Implementation Schedule – The project benefit must be realized in a reasonable period of time (typically defined as 3-6 months) • Any projects taken longer than 6 months should not be a accepted as a Six Sigma project – scarcity of resources • Six Sigma Process – The project should follow the DMAIC process for problem-solving

10. Definition of a Six Sigma Project • Six Sigma Tools – By following the DMAIC methodology a portion of the Six Sigma tools should be utilized • Capability and Confidence – The project should serve to increase the self-confidence of the Green Belt and the project team in utilizing the DMAIC methodology, while simultaneously increasing the corporate confidence in Six Sigma with the successful results • Process Orientation – The project should be viewed from the orientation of improving a process • Notice: There are no ties to financial requirements in the definition of a Six Sigma project • Defining a Black / Green Belt’s initial project based upon minimal financial savings can serve to force over-scoped projects • The $250K / project savings is an average of the entire Black Belt population

11. Narrowing the Scope The definitions of a Six Sigma Process should be used to narrow the scope of projects Large Scoped Project Project Definitions Narrow Scoped Project

12. Narrowing the Scope “ World Peace” “Boil the Ocean” “World Hunger” Issue with Large Scoped Projects Additional Time Required to Close Project • Tangible cost of deployment • Intangible costs increase

13. Narrowing the Scope Tangible cost of deployment Intangible costs increase • Higher material costs • Higher labor costs • Frustration due to lack of progress • Diversion of manpower away from other activities • Delay in realization of project benefits • Team member turn-over • Lower project closure rates • Fall in confidence with program

14. Narrowing the Scope Larger scoped projects should be broken down into a number of smaller projects Larger Projects Small Projects Small Projects Small Projects Small Projects Any project that is scheduled to take longer than six months to complete should be broken down into smaller subsequent projects

15. General Problem: Electric Motor Reliability is Poor Electric Motor Issue Data Taken Data Taken Data Taken Brush Wear Issue Brush Hardness Variability Project Scope: Reduce Variation in Brush Hardness Narrowing the Scope - Example Source: SAE Paper 2002-01-0897 “Creating a Positive and Successful Experience for Black-Belt Candidates “

16. Data Taken Data Taken Data Taken Narrowing the Scope - Data It is often required to assemble a significant amount of data to properly scope a project Source: SAE Paper 2002-01-0897 “Creating a Positive and Successful Experience for Black-Belt Candidates “

17. Barriers to Effective Scoping • Lack of focus on scoping in Six Sigma training and education – reliance on OJT • Lack of organizational experience in Six Sigma • Lack of Master Belts to serve as a support to Project Champions and Black / Green Belts • Difference between Champion “top-down” vs. Black / Green Belt “bottom-up” approach • Project Champions tasked with sometimes conflicting mandates • American cultural motivation factors • Ties to financial targets for a Black / Green Belt’s initial projects

18. Scoping Black / Green Belts’ Initial Projects • Issues with scoping are even more prevalent with new Black Belts and Green Belts • A Black / Green Belt’s performance on their first project will set the stage for their future success with the Six Sigma program

19. Scoping Black / Green Belts’ Initial Projects • Recommended Refined Goals / Requirements for new Black / Green Belt’s Initial Projects: • Achieve closure in a 3-6 month period • Follow DMAIC process • Utilize a sample of the Six Sigma tools • Most importantly – GAIN CONFIDENCE • The primary objectives of a new Black / Green Belt’s initial project • – reach closure • – gain confidence • – and grow to fight another day

20. Special Considerations for Green Belt Projects • A Green Belt project typical is within their own functional area or touches their own area / desk • A Green Belt project can be a sub-set of a larger Black Belt project • Many Green Belt projects are centered on developing a measurement system where one did not previously exist • The Green Belt project should be scoped to use the applicable Six Sigma tools • A Green Belt is typically assigned a Black Belt mentor to see them through their first project • A Green Belt project should be complete in less than 4 months

21. Tools for Narrowing the Scope Tools Used to Effectively Scope a Project • Y/X Diagram • High Level Process Map • Cause and Effect Diagram (fishbone) • Cause and Effect Matrix • Pareto Chart

22. Tools for Narrowing the Scope Y/X Diagram – can be used to progressively uncover the deeper relationship between an issue and its constituents The relationships are continually uncovered until an factor is identified that would serve as an adequate scope for a Six Sigma project

23. X/Y Diagram Example - Lemonade • The taste of a glass of lemonade is dependent on: • X1 – the type of lemon ingredient • X2 – the amount of sugar added • X3 – the type of water added • X4 – the amount of ice added Y = X1 + X2 + X3 + X4 • The lemon ingredient is dependent on: • X1 – if it was from fresh squeezed lemons • X2 – if it was from liquid concentrate lemons • X3 – if it was from powder concentrate lemon Y = X1 + X2 + X3 + X4 Y = X1 + X2 + X3 + X4 + X5 • The fresh squeezed is dependent on: • X1 – where the lemons are grown • X2 – how the lemons are transported • X3 – age when squeezed • X4 – how the lemons were squeezed • X5 – if pesticides where used when growing In this example an adequately scoped project may deal with the process for how the lemons are squeezed – as indicated by the circle around X4

24. Tools for Narrowing the Scope A High Level Process Map – can be used to outline the boundary area for a project scope. The area addressed by the scope in a process map is circled. If the circle encompasses a large process area, or if there are more than one circle in separate areas of the map, the project may be over-scoped

25. High Level Process Map Process Mapping Example Business Process (“Strategic”) BusinessDevelopment Sales Underwriting Contracting Customer Service BusinessProcesses SIPOC Terms Docs Neg Close S C Underwriters (ext.) Customers (int.) Cust. Service Dept. Detailed Subprocess Map

26. Tools for Narrowing the Scope A Cause and Effect Diagram (fishbone) and Cause and Effect Matrix – can be used to outline the boundary area for a project scope in the same manner as the process map however with respect to causes instead of process steps The potential causes / areas addressed by the scope in a cause and effect diagram is circled. If the circle encompasses a large area, or if there are more than one circle in separate areas of the diagram, the project may be over-scoped

27. Tools for Narrowing the Scope A Pareto Chart – can be used to break down a project scope using numerical data – the pareto chart is typically used in conjunction with one of the above methods to select the area of focus If the potential scope encompasses several bars on the pareto chart, the project may be over-scoped

28. Refining the Scope After data is collected during the Measure phase, it may be necessary to go back and refine the scope and redefine the project specifics Define Re-scope Data Measure

29. Project Team • Project Charter • High level process • Map • Customer • Requirements Summary of Define outcomes Define Process Summary Approved Project Purpose: To get the team established with an agreed clear opportunity Forming the Team Project Charter High Level Process Map Customer Requirements

30. Forming the Team • Green Belt Module #6 Team Dynamics

31. Project Team • Project Charter • High level process • Map • Customer • Requirements Summary of Define outcomes Define Process Summary Approved Project Purpose: To get the team established with an agreed clear opportunity Forming the Team Project Charter High Level Process Map Customer Requirements

32. Project Charter • Project leader’s responsibility • Means to control, manage and approve project • Serves as a contract between the Champion and the project team • Should be updated with any changes to the original agreement

33. Project Charter • Typical elements in a project charter: • Purpose • Problem Statement • Objective • Scope • Project Plan (Gantt chart) • Stakeholders • Champion • Team • Team Contract • Resources • Business Case • Deliverables

34. Project Team • Project Charter • High level process • Map • Customer • Requirements Summary of Define outcomes Define Process Summary Approved Project Purpose: To get the team established with an agreed clear opportunity Forming the Team Project Charter High Level Process Map Customer Requirements

35. BusinessDevelopment Business Process (“Strategic”) Sales Underwriting Contracting Customer Service BusinessProcesses SIPOC Terms Docs Neg Close S C Underwriters (ext.) Customers (int.) Cust. Service Dept. Detailed Subprocess Map Tasks Procedures Process MappingLevels Of A Process

36. Suppliers Inputs Process Outputs Requirements Customers Exec.Committee Hiring Budgets PAYROLL AND TAX SET-UP RECRUITMENT AND SELECTION NEW EMPLOYEE BENEFITSENROLLMENT ORIENTATIONTRAINING Dept. Managers Job Descriptions MANAGER Qualified Fits XYZCulture Recruiters,etc. Candidates CO-WORKERS Oriented toBusiness Set-up forPayroll,Benefits CUSTOMERS Process MappingSIPOC New Employment Process – SIPOC Map

37. Project Team • Project Charter • High level process • Map • Customer • Requirements Summary of Define outcomes Define Process Summary Approved Project Purpose: To get the team established with an agreed clear opportunity Forming the Team Project Charter High Level Process Map Customer Requirements

38. Process model Process CTQs and Y Measures Project Charter Tools Output Identify Customers and elicit CTQs More of / Less of Analysis Customer Requirements Threat/Opportunity Analysis Build the Vision Communications Plan Message Purpose Media Audience When/ Who Measure Corridor Conversation Sell the Vision Who Performed by the Team Facilitated and led by the Green Belt Communications Plan Corridor Conversation Process for Customer Requirements/Needs

39. Six Sigma Focus • Six Sigma needs focus, which is achieved through the business and customers • Projects are selected to make an impact on the business to: • Improve customer satisfaction • Reduce costs - preferably bottom line costs • To provide the focus we use the concept of Critical To Quality (CTQ)

40. Critical to Quality (CTQ) • Critical to Quality • The select few, measurable key characteristics of a specific part/product or process that relate to customer satisfaction • CTQ Attributes • CTQ’s are customer issues expressed in a way that is measurable • For any one issue there maybe more than one CTQ • CTQ’s can be internal and external

41. Identify Customers and Elicit CTQs • All processes have customers (internal or external) • All customers have expectations and needs • The process needs to deliver the customer expectations and needs • Understanding Customers’ expectations/need is about: • identifying the customer(s) • identifying their expectations (CTQs) -often via their issues • verifying their expectations • ensuring the CTQs align to the process outputs – can we measure the CTQ through measurements of the process outputs? • While conducting the SIPOC, the team will have already identified the Ys. We need to ensure these are related to the customer CTQs – this step is concerned with verifying and expanding these relationships

42. Identify Customers Listen to the Voice of the Customer Voice of the Customer Translation Structure CTQs Review Project Charter Process

43. Suppliers Process Outputs Customers Inputs Manufacturer Mug of coffee Customer Coffee Mug Catering Supplier Coffee Making a Mug of Coffee Change Sugar Milk Supplier Milk Customer Order Money Step 1:Heat Water Power Company Electricity Society Staff Process Steps Step 2:Take Order Step 3:Coffee in mug Step 4:Add Hot water Step 6:Give mug Step 6:Collect Money Step 5:Add Milk Identify Customers • Use your SIPOC as a start, but • think about the: • Type of Customer • Customer’s Customer • Should these people be included in the SIPOC

44. For many products / services there are more than one customer Economic - has the purchasing decision Technical - makes an evaluation User - has to use it! They will have different perspectives and even different expectations! We must find out The views of each type Their role in the decision making process Types of Customer Check to see if your SIPOC needs to or has considered the different types of customers

45. C S C C S S C S Process C S C S C S CTQ Cost Customers’ Customers Our customers’ have customers and we need to identify these CTQ On-time Delivery There should be a flow-through of CTQs Mismatches should be investigated

46. Listen to the Voice of the Customer • If we want to capture needs and expectations, and understand their issues or concerns, we have to listen to the customer • We need to remember that: • Different customers have different needs and expectations • Different categories of customer have different priorities • Customer’s often express their needs expectations issues etc. in vague general terms. Therefore, we may need to seek clarification • Ultimately, customers require six basic factors

47. What Do Customers Want? The six main factors that influence customer satisfaction (internal and external) are: • FUNCTION / FEATURES • the product or service must work and have the expected features • PRICE / COST • must be reasonable • AVAILABILITY / DELIVERY • must be on time • QUALITY / RELIABILITY • must be up to expectation • COMPETENCE • good track record • MARKET RESPONSE • time to market

48. Sample Questions • For all customers, you should ask questions and listen to the answer • Typical questions are: 1. What is important to you about our product/service? (ask them to rank each of these needs in order of importance) 2. What do you consider to be a “defect?” 3. How well are we performing in the areas you consider important? (How do you measure us?) 4. What do you like about our product/service? 5. What can we do to improve our product/service? (What can we do to make your job easier?) 6. What specific recommendations would you suggest to us?

49. Reactive systems Information comes to you whether you take action or not Customer complaints (phone or written) Problem or service calls Technical support calls Letters and Claims Sales reporting Product return information Warranty claims This information tell us about current and past problems Un-met requirements Proactive systems You need to put effort into gathering the information Interviews Focus groups Surveys Comment cards Data gathering during sales visits or calls Direct customer observation Market research, market monitoring Benchmarking This information tells us about past, current and future needs Approaches to listening to the Customer

50. Capture Customers’ requirements/complaints Determine the underlying issues CTQs Determine a way of measuring the issue Determine the definition of Defects Voice of the Customer Translation • What is it? • Voice of the Customer Translation (VoC) is a simple, but powerful tool that helps in determining the customer’s Critical to Quality aspects • How is it captured?