Lean Six Sigma Management Orientation

1. Lean Six Sigma Management Orientation Linda Lyons –Director, Center for University Learning & KSU’s Customer Service Champion Victor Kane – KSU Associate Professor Department of Mathematics and Statistics

2. Orientation Overview • Customer Service Initiative • What is Lean Six Sigma? • Origin of Lean Six Sigma • Employee Training • Project Essentials • Supervisor’s Role for Successful Projects • Process Improvement Organizational Model • Quality Awards Focused on Process Improvement

3. Customer Service State Initiative • In 2006, Governor Sonny Perdue launched the “Customer Service Improvement” initiative to assist in achieving the goal of making Georgia the best-managed state in the country. • It was the Governor’s desire that this initiative serve as both a catalyst and a vehicle to create a change in our culture towards providing better customer serviceacross all areas of service in the state.

4. The Governor’s initiative is anchored in five commitments to our customers: • Helpful • Courteous • Accessible • Responsive • Knowledgeable

5. In coordination with the Governor's Customer Service Initiative, Chancellor Davis mandated that every USG campus is to implement a plan for improving customer service. • Each institution has Customer Service Champion to manage/promote the Governor’s initiative. • Plans are developed each FY with identified units. • Outline clear and measurable ways to track the campus' progress toward improved customer service.

6. BOR’S STRATEGIC PLAN: Goal Six: Increase efficiency, working as a System • Challenge: • The USG will implement systematic process improvement efforts across the campuses in order to promote effectiveness. • Action: • Establish a process improvement initiative • Activities for Implementation: • Implement a Lean Six Sigma training program • Implement process improvement efforts.

7. KSU Customer Service Mission Kennesaw State University is dedicated to providing top customer service to our students and other KSU constituents by diligently listening to our customers’ concerns, being proficient and knowledgeable in our job duties, and demonstrating a willingness to go above the customers’ expectations when addressing customers’ issues and interests.

8. KSU Customer Service Initiative KSU-focused programs and activities include: • Customer Service Improvement Program - LSS • Customer Service Training/Certificate Program • Customer Service Council • Customer Service Inspector Program (CSI) • Shining Star Award Program • Chancellors/ Governors Award Program Nominations • Annual KSU Customer Service Recognition Luncheon

9. KSU Unit Participation The following units at Kennesaw have participated in the CS Improvement Program: • The Office of Student Financial Aid – FY “07 “, “09”, “10” • Business Services and KSU Bookstore – FY “08” • Continuing Education – FY “09” • Plant Operations/ Facilities - FY “10” • Office of the Registrar - FY “10”

10. KSU Awards/Recognitions Chancellor’s Customer Service Awards 2007 • Outstanding Customer Service Institution of the Year • Outstanding Customer Service Leadership Gold Award – Linda Lyons • Outstanding Customer Service Improvement Gold Award – Coles College of Business • Outstanding Customer Service Improvement Silver Award – New Hires Online Project 2008 • Outstanding Customer Service Institution of the Year • Joseph Greene Champion of the Year Award – Linda Lyons • Outstanding Customer Service Improvement Bronze Award – KSU Bookstore • Outstanding Customer Service Individual Bronze Award – Dr. Charles Aust • Outstanding Customer Service Team Bronze Award – Enrollment Services Communication Center 2009 • Outstanding Customer Service Leadership Award - Honorable Mention – Kim West, KSU Registrar • Outstanding Customer Service Team Gold Award – KSU’s Customer Service Council The following units at Kennesaw have participated in the CS Improvement Program: • The Office of Student Financial Aid – FY “07 “, “09”, “10” • Business Services and KSU Bookstore – FY “08” • Continuing Education – FY “09” • Plant Operations/ Facilities - FY “10” • Office of the Registrar - FY “10”

11. KSU Awards/Recognitions Chancellor’s Customer Service Awards 2007 • Outstanding Customer Service Institution of the Year • Outstanding Customer Service Leadership Gold Award – Linda Lyons • Outstanding Customer Service Improvement Gold Award – Coles College of Business • Outstanding Customer Service Improvement Silver Award – New Hires Online Project 2008 • Outstanding Customer Service Institution of the Year • Joseph Greene Champion of the Year Award – Linda Lyons • Outstanding Customer Service Improvement Bronze Award – KSU Bookstore • Outstanding Customer Service Individual Bronze Award – Dr. Charles Aust • Outstanding Customer Service Team Bronze Award – Enrollment Services Communication Center 2009 • Outstanding Customer Service Leadership Award - Honorable Mention – Kim West, KSU Registrar • Outstanding Customer Service Team Gold Award – KSU’s Customer Service Council • Governor’s Commendation for Customer Service Excellence • 2008 • Kennesaw State University • Linda Lyons, Director, Center for University Learning • The Office of Student Financial Aid • 2009 • Linda Lyons, ,Director, Center for University Learning • Dr. Theresa Johnston, Director of Collegiate Recovery Center • 2010 • Dr. Michael Sanseviro, Interim Dean, Student Success and Director of Residence Life The following units at Kennesaw have participated in the CS Improvement Program: • The Office of Student Financial Aid – FY “07 “, “09”, “10” • Business Services and KSU Bookstore – FY “08” • Continuing Education – FY “09” • Plant Operations/ Facilities - FY “10” • Office of the Registrar - FY “10”

13. QUESTIONS?

14. What is Lean Six Sigma? • Definition – Lean Six Sigma is an improvement methodology for reducing cost through improving products and services related to customer satisfaction. • Observation – the methodology used in Lean Six Sigma is not new, but a disciplined evolution of approaches used in Quality Control during the 20th century.

15. Why Consider Lean Six Sigma? • Jack Welch – CEO GE (1981-2001) http://www.youtube.com/watch?v=aNMULFcLuIM “I see a Six Sigma company as a company whose management understands that variation is evil….” • Ewy and Gmitro (2009) “Process Management in Education” http://www.asq.org/quality-press/display-item/index.pl?item=E1352 “Six Sigma is a process improvement methodology used by process managers to create breakthrough improvements.”

16. Origin of Lean Six Sigma

17. Six Sigma Begins Video Links: 1) http://www.youtube.com/watch?v=GHvnIm9UEoQ 2) http://www.youtube.com/watch?v=Pd_uRGy5RKY 3) http://www.youtube.com/watch?v=UxCeeUqrfs4

18. Lean Six Sigma Begins Links: 1) http://www.youtube.com/watch?v=PQspf3q12mo 2) http://www.baldrige.nist.gov/PDF_files/UWStout_Application_Summary.pdf 3) http://www.baldrige.nist.gov/PDF_files/Richland_College_Application_Summary.pdf

19. Key Elements of Lean Six Sigma • Cost and Service Improvement Focus • Process Based Analysis with DMAIC • Project Based Organization • Team Oriented with Employee Training Levels • White, Yellow, Green, Black Belt • Master Black Belt, Champion • Data Driven with Key Measures Defined • CustomerSatisfaction Measures

20. Key Lean Six Sigma Tools • DMAIC Problem Solving Process Define→Measure⇄Analyze→Improve→Control • Data Analysis (7 basicstatistical tools) • Process Mapping with Flows of Everything • Process Monitoring and Capability • Team Discussion Methods (7 team tools) • Many Statistical Methods • Lean flow and Cycle Time Focus

21. Six Sigma Assumptions • All work is accomplished using a process. • Every process has inputs (X’s) with outputs (Y’s) which relate to customer satisfaction. • Every process has value-added activities that transform X’s to Y’s. The goal of a project is to discover the critical X’s and optimize them to obtain the best level of Y’s.

22. Process Flowchart Basics • Six Sigma principle: All work in an organization is performed in a process. See video: http://www.youtube.com/watch?v=J6Aqg7CKRa8 • Consequence: After defining targeted measures to improve, the first step in improvement is detailed definition of processes. Step 1 Correct? Rework Y M Outputs Value-Added Activity - 1 Value-Added Activity – 2A Start End M M M M Customer Use Inputs Data or Information Value-Added Activity – 2B M=Measures Process performance metrics Counts, times, measures Alternate Path M Customer Satisfaction M

23. Find Possible Sources of Purchase Balsa Different Brand of Airplane Balsa Airplanes Unwrap package without damaging any part. Inventory Parts per Instructions or Checklist Self-Developed of Parts Checklist X1 =Fuselage N All Parts Present? Weight KIV Y CTQ Variables in Bold Assemble Tail Wing and Rudder N KIV's X2=Main Wing Center Position Assemble Main X3=Tail Wing Measure Wing Center Position Test Flight ok? Y Y1=Distance X4=Distance Y2=Time from Nose to Front of Main Wing X5=Total Assembled Weight End Process Map Example

24. Common Six Sigma Metrics • Defects per Time Period ( Items not correct the first time) • First Time Through - % of products/services with no changes, adjustments, etc. • Rework - % of units in that require some change • Cycle Time – time required to complete a process • Wait Time – time customer waits for service • Yield – number units entering process versus number exiting

25. Lean Six Sigma Improvement Strategies 1) Defect Focus – what is not done right the first time? 2) ProcessDefinition Analysis and Simplification 3) Find and Optimize Process Key Measures that impact defects & customer satisfaction. Reduce variation. Cost improvement is an outcome. 4) Rationalize Flows of Material & Information (Lean) 5) Standardize Work Methods (Lean) 6) Error Proof Process Steps 7) Benchmark Similar Processes

26. KSU Training for CSI • White Belt (6 hours) • Identifying Improvement Opportunities • Using Lean Six Sigma (DMAIC) • Variability Reduction • Identifying Customers • Teamwork Essentials • Yellow Belt (18 hours) • Business Process Reengineering • DMAIC Phases • Simple Statistical Tools

27. CSI Learning to Date • Defining a useful project is the most important step in DMAIC. • A process map can be difficult when processes are not systematically defined. • Data in a usable form is usually not available on how a process is performing. • Trained personnel cannot work in a vacuum and be successful. They will need team member support. • Periodic supervisor updates are motivating.

28. Project Essentials • Define is the first step in DMAIC. This is the most difficult phase. It is said that a “Well defined problem is half solved”. • To assist in project definition a Project Charter can be used. Template: http://www.6sigma.us/user/Six%20Sigma%20Project%20Charter%20Template%20v1.doc • Key elements to start a project definition: • Practical problem description and measures • Objective – What does success look like? • Scope with organizational boundaries • Time commitment authorized for each team member • Schedule for updates

29. Supervisory Roles • Select Right People for Training • Identify Area Needing Improvement • Brainstorm Key Measures (e.g., processing time, rework time, number of complaints/calls, etc.) • Review Team Membership to Ensure Needed Skills and Interfaces are Represented. • Set Boundaries for Project Activity • Brainstorm Benchmarking Opportunities • Meet with Team Periodically

30. Organizational Perspective • What is the “Big Picture”? • What are interrelationships? Process Management Improvement System – DMAIC Team-Based Improvement Strategy Data Based Key Measures Customer Focus, etc. • Is there a model to represent how the entire organization might function?

31. Criteria Framework: A Systems Perspective

32. Historical Perspective • Baldrige established in 1987 to recognize U.S. organizations for quality and performance achievements • Established as a diagnostic tool for self- and third-party assessments • 70+ nations have Baldrige-based award processes • 40 states have Baldrige-based award processes • Initial focus was on the manufacturing industry • Currently many sectors: business, industry, government, EDUCATION,healthcare, and nonprofit • Video:http://www.baldrige.nist.gov/Video/Getting_Results/index.html

33. Baldrige Education Winners • Baldrige has adapted Performance Criteria to education. http://www.quality.nist.gov/Education_Criteria.htm • U. Of Wisconsin – Stout : Wins MBNQA (2001) , graduate (8,000 students) http://www.baldrige.nist.gov/PDF_files/UWStout_Application_Summary.pdf • Richland College – Dallas, Texas: Wins MBNQA (2005), 2 year (3500 students) http://www.baldrige.nist.gov/PDF_files/Richland_College_Application_Summary.pdf

34. Baldrige and Lean Six Sigma It must be emphasized that NO specific process improvement system is required by Baldrige criteria. A relevant criteria question is: 6.2 Work Processes: How do you design, manage, and improve your key organizational work processes? Note 2 states: “… your organization might implement approaches such as PDCA…ISO standards,Six Sigma, or Lean….” Application of criteria to smaller organizations requires flexibility.

35. Baldrige Validated Criteria- 89 QuestionsSome Validation Evidence • Benefits compared to social cost exceed 207:1 - A. N. Link and J.T. Scott (2006) , “An Economic Evaluation of the Baldrige National Quality Program,” Economics of Innovation and New Technology, 15, 83-100. • Award winners significantly outperformed control group (38-46%) – K. B. Hendricks and V. R. Singhal (2001), “The Long-Run Stock Price Performance of Firms with Effective TQM Programs,” Management Sciences, 47, 359-368. • Award winners outperformed control group on operating income (48%)- K. B. Hendricks and V. R. Singhal (1997), “Does Implementing an Effective TQM Program Actually Improve Operating Performance? …,” Management Sciences, 43, 1258-1274. • Baldrige winners were better than control group by a factor of 2 on key financial measures.- K. B. Hendricks and V. R. Singhal (1999), “The Financial Rewards from TQM,” American Ceramic Society Bulletin, 78, 89-93. • TQM and superior financial results were found to covary. K. M. York and C. E. Miree (2004), “Causation or Covariation: an Empirical Re-examination of the Link Between TQM and Financial Performance,” Journal of Operations Management 22 (2004) 291–311 • 1994-2003 award recipients underperformed S&P 500 by -18% to +36% from announcement date to December 2004. MBNQA Website. • Up to 2001 Award winners beat S&P 500 returns by 300-600% (8 years), This trend was reversed in 2002 and 2003, the last years studied. http://baldrige.nist.gov/Stock_Studies.htm.

36. Summary – Performance Excellence and Lean Six Sigma • Jim Collins in Good to Great (2001) analyzes 11 great companies selected based on stock performance. His team found 6 concepts that made them unique. One concept “a culture of discipline” describes several Baldrige/TQM-like characteristics. • Clearly, there is no agreement on everything organizations should do to achieve Greatness or Performance Excellence. • Criteria have slight annual changes to reflect best practices. Inputs vary - Enron Scandal (2001): Ethical Behavior in Leadership - Hurricane Katrina (2005): Disaster Planning • Some common themes related to Lean Six Sigma in most approaches are: - Customer Focused Products and Services - Process Model for Value-Added Work Activity - Continuous Improvement of Processes - Data-Based Decision Making • Lean Six Sigma is a useful approach that supports most models for superior organizational performance.

37. What is Georgia Oglethorpe Award Process, Inc.? • Public-private partnership (1997) • Mission – • Leading Georgia’s Organizations to • Improve Performance • Vision – Georgia Outperforming the World! • Modeled after the Malcolm Baldrige National Quality Award Criteria and Award Process • http://www.georgiaoglethorpe.org/

38. Three Step Process Baldrige Award (For those eligible.) Maturity and Recognition Options Georgia Oglethorpe Award Step 3 Georgia Progress Award Step 2 Georgia Focus Recognition Step 1

39. Thank You!! May your processes be productive and satisfy your customers….