Lean Six Sigma Measure Phase Tollgate Review

1. Measure Phase • Lean Six Sigma Measure Phase Tollgate Review

2. Lean Six Sigma DMAIC Tools and Activities • Review Project Charter • Validate High-Level Value Stream Map and Scope • Validate Voice of the Customer & Voice of the Business • Validate Problem Statement and Goals • Validate Financial Benefits • Create Communication Plan • Select and Launch Team • Develop Project Schedule • Complete Define Tollgate • Value Stream Map Flow • Identify Key Input, Process and Output Metrics • Develop Operational Definitions • Develop Data Collection Plan • Validate Measurement System • Collect Baseline Data • Determine Process Capability • Complete Measure Tollgate • Identify Root Causes • Reduce List of Potential Root Causes • Confirm Root Cause to Output Relationship • Estimate Impact of Root Causes on Key Outputs • Prioritize Root Causes • Value-Add Analysis • Takt Rate Analysis • Quick Wins • Statistical Analysis • Complete Analyze Tollgate • Develop Potential Solutions • Evaluate, Select, and Optimize Best Solutions • Develop ‘To-Be’ Value Stream Map(s) • Develop and Implement Pilot Solution • Implement 5s Program • Develop Full Scale Implementation Plan • Cost/Benefit Analysis • Benchmarking • Complete Improve Tollgate • Develop SOP’s, Training Plan & Process Controls • Implement Solution and Ongoing Process Measurements • Confirm Attainment of Project Goals • Identify Project Replication Opportunities • Training • Complete Control Tollgate • Transition Project to Process Owner Improve Control Define Analyze Measure • Mistake-Proofing/Zero Defects • Standard Operating Procedures (SOP’s) • Process Control Plans • Visual Process Control Tools • MGPP • Statistical Process Controls (SPC) • Solution Replication • Visual Workplace • Metrics • Project Transition Model • Team Feedback Session • Replenishment Pull/Kanban • Stocking Strategy • Process Flow Improvement • Process Balancing • Analytical Batch Sizing • Total Productive Maintenance • Design of Experiments (DOE) • Solution Selection Matrix • Piloting and Simulation • Work Control System • Setup reduction • Pugh Matrix • Pull System • Value Stream Mapping • Process Cycle Efficiency/Little’s Law • Operational Definitions • Data Collection Plan • Statistical Sampling • Measurement System Analysis (MSA) • Gage R&R • Kappa Studies • Control Charts • Spaghetti Diagrams • Histograms • Normality Test • Process Capability Analysis • Process Constraint ID and Takt Time Analysis • Cause & Effect Analysis • FMEA • Hypothesis Tests/Conf. Intervals • Simple & Multiple Regression • ANOVA • Components of Variation • Conquering Product and Process Complexity • Queuing Theory • Project Charter • Voice of the Customer and Kano Analysis • SIPOC Map • Project Valuation/ROIC Analysis Tools • RACI and Quad Charts • Stakeholder Analysis • Communication Plan • Effective Meeting Tools • Inquiry and Advocacy Skills • Time Lines, Milestones, and Gantt Charting • Pareto Analysis Kaizen Events Targeted in Measure to Accelerate Results International Standards for Lean Six Sigma

3. Improve Summary Solution Selection Criteria Pilot and Implementation Plan 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 • ? • ? • ? • ? • ? Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

4. Descriptive StatisticsProcess Capability (Baseline) (Improved) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

5. FMEA • Risk Analysis recommended actions (Key Speaking Points) • Rating Index • Total Current RPN Risk Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

6. RACI Chart Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

7. Control / Response & Escalation Plan Process Escalation Map Data Monitor checks the dashboard and learns that I-MR and is out of control Escalates to the Process Owner & Black Belt for special cause identification FMEA is used to update any failure/actions or improvements not recorded Supplier is contacted to review defects and actions Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

8. Business Impact • State financial impact of future project leverage opportunities • Separate “hard or Type 1” from “soft Type 2 or 3” dollars Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

9. Business Impact Details • 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 thefinancial 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 ) • Showthe 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? Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

10. Current Status • Key actions completed • Issues • Lessons learned • Communication, team building, organizational activities Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

11. Next Steps • Questions to answer • Barrier/risk mitigation activities • Key actions • Planned Lean Six Sigma Tool use Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

12. Lessons Learned • ? • ? • ? • ? • ? • ? • ? • ? • ? • ? Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

13. Project Contributors Steering Team Support Team • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> Project Ownership Team Deployment Team • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> • <Name>: <Contribution> Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

14. Sign Off 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 & Control phases were documented & 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 sub-process on a regular basis to the customer • I have reviewed this project’s financial benefits with the Champion, Sponsor, and Finance • I understand the corrective action procedure and am responsible for ensuring that action items are completed to hold the gains and capture the financial benefits Enter Name Here Executive Director Enter Name Here Financial Representative Enter Name Here Green Belt/Black Belt Enter Name Here Sponsor / Process Owner Enter Name Here “Other” Key Stakeholder Enter Name Here Master Black Belt Enter Name Here “Other” Key Stakeholder Enter Name Here Deployment Champion Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

15. Tollgate ReviewsBackup Slides Halt - Hold D M A I C Go Forward Wait - Go Back

16. Project Charter 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) Problem/Goal Statement 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 Tollgate Review Schedule • PES Name Project Executive Sponsor (if different from PS) • PS Name Project Sponsor/Process Owner • DC Name Deployment Champion • GB/BB Name Green Belt/Black Belt • MBB Name Master Black Belt • Core Team Role % Contrib. LSS Training • Team Member 1 SME XX YB • Team Member 2 TM XX GB • Team Member 3 SME XX PS • Extended Team • Team Member 1 BFM XX Not Trained • Team Member 2 IT XX Not Trained TollgateScheduledRevisedComplete Define: XX/XX/XX - XX/XX/XX Measure: XX/XX/XX XX/XX/XX XX/XX/XX Analyze: XX/XX/XX XX/XX/XX XX/XX/XX Improve: XX/XX/XX XX/XX/XX XX/XX/XX Control: XX/XX/XX XX/XX/XX XX/XX/XX • Review high-level schedule milestones here: • Phase Completions • Tollgate Reviews Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

17. Measure Overview • CTQ: ? • Unit (d) or Mean (c): ? • Defect (d) or St. Dev. (c): ? • PCE%: ? • DPMO (d): ? • Sigma (Short Term): ? • Sigma (Long Term):? • MSA Results: show the percentage result of the GR&R, AR&R or other MSA carried out in the project Process Capability Graphical Analysis Tools Used Root Cause / Quick Win • Time Series Plot • Probability Plot • Pareto Analysis • Operational Def. • 5s • Pull • Control Charts • Detailed process mapping • MSA • Value Stream Mapping • Data Collection Planning • Basic Statistics • Process Capability • Histograms • Root cause: • Quick Win #1 • Root cause: • Quick Win #2 • Root cause: • Quick Win #3 Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

18. Analyze Overview Hypothesis Tests Value-Add Analysis Tools Used Root Cause / Effect • C&E Matrix • Complexity • Cause & Effect Diagram • Kaizen/Quick Wins • FMEA • Control/Impact Chart • T-Test • Other • Root cause: • Effect • Root cause: • Effect • Root cause: • Effect • Value Add Analysis • One-Way ANOVA • Two-Way ANOVA • Pareto Plots • Simple Linear Regression • Multiple Regression • Test for Equal Variance • Scatter Plots Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

19. ImproveTollgate Checklist Stop Tollgate Review • 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 proposed solutions address all the identified root causes, 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 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? Deliverables: • Prioritized List of Solutions • “To-Be” Value Stream Map(s) • Pilot Plan & Results • Approved Solution and Detailed Implementation Plan • Additional “Quick Wins”, if applicable • Refined Charter, as necessary • Updated Risk Mitigation Plan • Deliverables Uploaded to Central Storage Location or Deployment Management System Has the team developed improvement solutions for the critical X’s, piloted the solution and verified that the solution will solve the problem? International Standards for Lean Six Sigma 19

20. ControlTollgate Checklist Stop Tollgate Review • Has the team prepared all the essential documentation for the improved process, including revised/new Standard Operating Procedures (SOP’s), a training plan and a process control system? • Has the necessary training for process owners/operators been performed? • Have the right measures been selected, and documented as part of the Process Control System, to monitor performance of the process and the continued effectiveness of the solution? Has the metrics briefing plan/schedule been documented? Who owns the measures? Has the Process Owner’s job description been updated to reflect the new responsibilities? What happens if minimum performance is not achieved? • Has the solution been effectively implemented? Has the team compiled results data confirming that the solution has achieved the goals defined in the Project Charter? • Has the Benefits Realization Schedule been verified by the Financial Representative? • Has the process been transitioned to the Process Owner, to take over responsibility for managing continuing operations? Do they concur with the control plan? • Has a final Storyboard documenting the project work been developed? • Has the team forwarded other issues/opportunities, which were not able to be addressed, to senior management? • Have “lessons learned” been captured? • Have replication opportunities been identified and communicated? • Has the hard work and successful efforts of our team been celebrated? Deliverables: • SOP’s • Training Plan • Process Control System • Benefits Realization Schedule, validated by Financial Representative • Validated Solution • Replication/ Standardization Plan • Lessons Learned • Transitioned Project • Project Risk Performance • Deliverables Uploaded to Central Storage Location or Deployment Management System Has the team implemented the solution, and a control plan to insure the process is robust to change? International Standards for Lean Six Sigma 20

21. Lean Six Sigma DMAIC Improvement Process • Define the opportunity from both the customer and business perspective Define Tollgate Review • Understand the baseline process performance Stop Measure • Identify the critical X factors and root causes impacting process performance Tollgate Review Analyze Stop Tollgate Review • Develop solutions linked to critical x’s Stop Improve Tollgate Review Stop • Implement solutions & control plan Control Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

22. Measurement Systems Analysis (Optional) Total Gage R&R 17.12 41.38 Repeatability 17.12 41.38 Reproducibility 0.00 0.00 operator 0.00 0.00 Part-To-Part 82.88 91.04 Total Variation 100.00 100.00 For Continuous Data, use Minitab GR&R Study For Discrete data, use AR&R Excel Tool For more information, see Notes section of this slide Conclusions: 17.12% of component variation from measurement system, 82.88% of component variation from part-to-part measured Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

23. Control Chart(Optional) Control Chart Findings • ? • ? • ? • ? • ? Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

24. Takt Board – Monitor(Optional) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

25. Mistake Proofing (Poke Yoke) (Optional) • Solution: Make use of existing bar codes on shipping paperwork to mistake proof receiving function. • Validate with suppliers (shipping company) that all shipping containers will have barcode label ($0) • Purchase RF (wireless) bar coding equipment and software ($100/gun * 20 guns) • Train all longshoreman on use and care of equipment ($50/hr * 20 hrs) • Install error metrics for error tracking ($100) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

26. Cultural/EducationalIssues (Optional) Restraining Forces Driving Forces • Force Field Analysis: 1. Select a process control method & explain why this choice for your project. 2. Identify 4-6 cultural/educational barriers to successfully implementing your process controls & potential solutions using the Force-Field Analysis Table below: Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

27. Replication(Optional) • Replication Goals • 29% $ savings captured with 1st completed project in 10 week project • 70% $ savings captured with 5 locations replicated in 6 months • 100% $ savings captured with 9 locations replicated in 9 months • Replication Strategy • Build change team • Train / Kaizen • Dashboard Metrics 10 Wks 6 Mo 9 Mo • 5 locations standardized (70%) • 9 locations Replicated (100%) • 1st completed project (29%) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma