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OSSS LSS Black Belt v9.0 - Control Phase

Awareness Training Materials. 1. OSSS LSS Black Belt v9.0 - Control Phase. Course Contents. Process Management • Definitions • Process Ownership • Cost of Poor Quality. Class Presentation • 108 slide PowerPoint Presentation • Instructor Notes. 2.

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OSSS LSS Black Belt v9.0 - Control Phase

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  1. Awareness Training Materials 1 OSSS LSS Black Belt v9.0 - Control Phase

  2. Course Contents Process Management • Definitions • Process Ownership • Cost of Poor Quality Class Presentation • 108 slide PowerPoint Presentation • Instructor Notes 2 OSSS LSS Black Belt v9.0 - Control Phase

  3. Lean Principles • Seven Areas of Waste • Value Stream Analysis • 5S Principles • Poka-Yoke Methods Six Sigma • Define • Measure • Analyze • Improve • Control 3 OSSS LSS Black Belt v9.0 - Control Phase

  4. A SMALL SNEAK PEAK… 4 OSSS LSS Black Belt v9.0 - Control Phase

  5. Define Phase

  6. Define Phase Overview Which processes that I work in are key to the success of the organization, the customer and/or are in need of improvement? What specific problem can I solve to improve the performance of this process and/or my company? What is the current baseline level of performance that quantifies this problem or process performance? By how much and by when do I want to improve the performance, what is my objective? How much money would I save if I improved the process performance to the level stated in the objective statement? If I make an improvement which of the company’s goalsand objectivesdoes it support? Identify poorly performing areas, define an improvement effort with an understandable problem statement and a good objective statement that will have a beneficial impact on the business.

  7. Inputs Output Needing Improvement (Y) Process Process Steps for Defining a Project 1. Determine what specifically needs to be improved, defined as a “Y” (also called the primary metric)2. Determine the baseline performance for the chosen “Y” 3. Identify and map the associated processes at a macro level

  8. Steps for Defining a Project + 4. Identify the cost and impact of the problem 5. Write the Problem Statement 6. Write the Objective Statement 7. Identify individuals associated with the project 8. Obtain approvals and launch the project WHATis wrong,WHEREandWHENis it occurring, what is theBASELINEmagnitude at whichit is occurring and what is itCOSTINGme? Improve someMETRIC from someBASELINElevel to someGOAL, by someTIME FRAME,to achieve some BENEFIT and improve uponsomeCORPORATE GOAL or OBJECTIVE.

  9. GOOD Problem Statements: Since August 1, 2003, the average time to deliver pizza within a ten-mile radius is 29 minutes - a low of 24 minutes and a high of 34 minutes - causing us to miss our goal of less than 30 minutes 32% of the time. This causes customer complaints, delivery of cold pizzas and loss of business. This costs us $35,000 per year in scrapped/free pizzas, $6,750 in drivers’ expenses and an annual revenue loss of $300,000. For the past 12 months, 6.5% of pizzas have been scrapped prior to boxing due to burnt crust. Also, 1.75% of pizzas delivered have been scrapped due to burnt areas in the cheese and toppings. Annually, this costs us $84,000 plus loss of customer satisfaction. Writing a Problem Statement POOR Problem Statements: • Customers are complaining about delivery times. • There is a problem with the number of burnt pizzas. Include the following: WHATis wrong,WHEREandWHENis it occurring, what is theBASELINEmagnitude at whichit is occurring and what is itCOSTINGme?

  10. POOR Objective Statements: Improve pizza delivery times. Re-train employees to reduce the number of burnt pizzas. Writing an Objective Statement GOOD Objective Statements: • Reduce the number of pizzas delivered in over 30 minutes from 32% to less than 4% by August 1, 2005. This will support our Customer Satisfaction goal and achieve a hard savings of $65,000. • Reduce the number of burnt pizzas, including the cheese/ingredient area, from an average of 8.25% to less than 0.5% with an upper control limit of 1% by June 15, 2004. This will support our goal of operational excellence and provide a savings of $135,000. Include the following: Improve someMETRIC from someBASELINElevel to someGOAL, by someTIME FRAME,to achieve some BENEFIT and improve uponsomeCORPORATE GOAL or OBJECTIVE.

  11. Summary The probability of success for an improvement project is greatly improved when it is properly defined. • It increases the confidence of the leader and the supporting team. • There is more “buy-in” and support when people understand the problem (Problem Statement) and can sense the benefit (Objective Statement). • The problem becomes more manageable when it is transformed into a project. • There is a beginning and an end - you know when you have finished instead of an incomplete effort. • Most projects have hard financial benefit and/or they improve work conditions, predictability and customer satisfaction.

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