MGS 8020 Business Intelligence Define Jul 15, 2017

1. MGS 8020Business IntelligenceDefine Jul 15, 2017

2. Control Improve Analyze Define Measure DMAIC Six Sigma - Define • The Big Picture • Alignment • Identify Customers • Customer requirements and expectations for product or service • Understand Process • Map business process and identify stakeholders • Complete Charter • Identify opportunity, project boundaries, leadership and team

3. Agenda • The Big Picture • Alignment • Identify Customers • Customer requirements and expectations for product or service • Understand Process • Map business process and identify stakeholders • Complete Charter • Identify opportunity, project boundaries, leadership and team

4. Aligning Project with Broader Goals MISSION STRATEGY GOALS AND OBJECTIVES PROJECTS

5. Alignment – Mission / Purpose Corporate Mission Statements “We are ladies and gentlemen serving ladies and gentlemen.” Ritz-Carlton “People, Service, Profits” Federal Express Typical Organizational Mission Statement Our mission is to assist in designing and implementing a team concept of management throughout all levels in our plant that will facilitate employee involvement for the mutual benefit of all in achieving our goal of continuous improvement in safety, environment, quality, production and cost.

6. Alignment - Goals and Objectives “SMART” ObjectivesSpecificMeasurableAttainableReasonableTied to Time Frame Unclear Project Objective: • Remove CLS data entry during Shipping Process Clearer Project Objective: • Reduce shipping paperwork data entry errors by 25% by June 2000.

7. PROJECT SCOPING Initial Issue Second Level Third Level ? Why? Why? Why? Perform project scoping until you cannot answer why. Alignment - Projects

8. Project Prioritization

9. Agenda • The Big Picture • Alignment • Identify Customers • Customer requirements and expectations for product or service • Understand Process • Map business process and identify stakeholders • Complete Charter • Identify opportunity, project boundaries, leadership and team

10. Process Capability • Tolerance limits (The “Voice of the Customer”) – customer requirements • Process limits (The “Voice of the Process” or The “Voice of the Data”) - based on natural (common cause) variation • Process Capability – A measure of how “capable” the process is to meet customer requirements; compares process limits to tolerance limits. There are three main elements associated with process capability – process variability (the natural range of variation of the process), the process center (mean), and the design specifications.

11. Listening to the Voices Voice of the Customer – Quality, Price, Responsiveness Process – Process Flow, Value Stream,Control, Capability Employee – Satisfaction, Worth, Recognition, Safety Also remember the other stakeholders – • Owners – Returns, Growth, Security • Suppliers – Involvement,Growth,Price,Stability

12. Voice of Customer (VOC) Steps: • Collect raw data – Interviews, Surveys • Group data into themes • Identify underlying issues (drivers) – Kano Analysis • Define measurable variables (Critical-to-Quality, or CTQ, variables) Goal - To identify how to create value to customers “I do not like dealing with your company” Products not delivered on time Need 10 day lead time VOC 5 Whys CTQ

13. Customer Satisfaction Survey Uses: • To identify areas which need improvement ways to gain back and retain customers • To identify gaps in management and customer’s point of view • To acquire feedback for improvement Goal: to measure the quality of a product or service

14. Performance Importance Question 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 ’ ’ 6 PIMS Model of Customer Satisfaction Goal: to determine the performance and importance of key customer satisfaction drivers Use: To identify high-priority issues 5 Low Performance /High Importance High Performance/ High Importance 1 3 Importance High Performance/Low Importance Low Performance/Low Importance 2 1 5 3 1 Performance Source: Boston Consulting Group

15. Separates features into dimensions Levels of customer expectations Dissatisfiers Satisfiers Delighters Can you give examples of each? Customer Satisfaction Delighters Satisfiers Low performance High Performance Dissatisfies Customer Dissatisfaction Kano Analysis Goal: To model customer satisfaction as it relates to product Use: To identify customer needs, determine requirements, develop concept, or to analyze competitive products

16. Agenda • The Big Picture • Alignment • Identify Customers • Customer requirements and expectations for product or service • Understand Process • Map business process and identify stakeholders • Complete Charter • Identify opportunity, project boundaries, leadership and team

17. Voice of the Process (VOP) Goal of Voice of the Process/Voice of the Data • Eliminate Blame/Fear • Determine if process is predictable • Identify causes of problems Process Activity from the Customer Perspective • Direct Value Add • Non-Value Add But Necessary • Non-Value Add

18. Requirements Requirements S I P O C Suppliers Process Outputs Customers Input Input Boundary Output Boundary What is a SIPOC? Suppliers - Provide inputs to the process Input - Resources required by the process Input Boundary - Specifies when the process starts Input Requirements - What the process requires of the inputs. Measurable, quantifiable. Process - The activity which transforms inputs to outputs Output Boundary - Specifies when the process ends Outputs - Delivered products or services Customers - Stakeholders who place the requirements on the outputs Output Requirements - What the customer requires of the outputs. Measurable, quantifiable.

19. Input Output Analysis - SIPOC

20. Outputs Inputs Customer Service Sourcing Packaging Shipping Process Mapping Goal: to understand a system or a process Use: To identify customers/supplier relationships, value-added work, potential opportunities for improvement, and to eliminate redundant steps Example: Order Fulfillment Process Environmental Analysis Develop RFP Conduct Bid Process Select Supplier Implement Supplier Change

21. Value Stream Mapping High level delivery path (flowchart or process map) from customer request to delivery of product or service – includes materials, people, information

22. Agenda • The Big Picture • Alignment • Identify Customers • Customer requirements and expectations for product or service • Understand Process • Map business process and identify stakeholders • Complete Charter • Identify opportunity, project boundaries, leadership and team

23. Goals Problem Statement Project and Process Mission Objective Statement Enables project owner to set expectations and creates ability to get “buy in” Obtain Commitment Set Roles and Responsibility Set Project Schedule Secondary Goals Acquire Resources Focus on Project Objective Project Name Business Unit Department Start Date Project Budget Contact Information Project Stakeholder Name Phone number E-mail Project Champion Process Owner Black/ Green Belt Team Members Process Name Product/ Service Description Objective Project Y Baseline Forecast Objective Project Scope Statement Assumptions/ Constraints/ Risk Benefits Schedule Chartering a Project

24. Gannt Chart - Scheduling Schedule of Activities