Green Belt Certification Chapter 6

1. Lean Six Sigma for Government Certification Series Green Belt Certification Chapter 6

2. Introduction to Continuous Process Improvement (CPI)DMAIC (CONTINUED)

3. DMAIC in CPIControl • Control Stage Objectives • Standardize new process procedures • Establish means to verify new process performance • Detect deviation from specifications • Correct before impacting the customer • Prevent deviation from specifications • Verify gains in terms of time, quality and cost • Document Lessons Learned • Purpose • Complete the Project • Return the improved process to owner • Ensure gains are achieved and maintained • Enable further improvement opportunities

4. DMAIC in CPIControl • Control • Institutionalize Process Change • Standard Procedures • Training • Performance Measures • Customer Focus • Value Focus • Output Focus • Balanced Scorecard • Customer Need • Financial Performance • Process Performance • Growth & Learning

5. DMAIC in CPIControl Process Control • Strategies • Prevent/Reduce Errors • Detect/Correct Errors Before the Customer is affected • “An ounce of Prevention is worth a pound of cure”

6. DMAIC in CPIControl Standardize and Control the Process Changes • Standard Procedures • Statistical Process Control • Engineered Process Control

7. DMAIC in CPIControl Standard Procedures (SOPs) • Standardize the Process • Flowcharts • Decision Trees • Divert Resources • Move personnel • Switch product lines • Channel Orders by Type • Route certain customers • Express lanes

8. DMAIC in CPIControl Statistical Process Control (SPC) How does the characteristic vary over time? • A centerline, usually the mathematical average of all the samples plotted. • Upper and lower statistical control limits that define the constraints of common cause variations. • Performance data plotted over time. What causes the variation? • Common Cause Variation • Special Cause Variation

9. DMAIC in CPIControl • Engineered Process Control (EPC) • Automatically correct deviation from specified course • Example: Autopilot • What are examples of EPC you use in your work environment? • How does it help from a customer point of view add value to your process?

10. DMAIC in CPIControl

11. DMAIC in CPIControl

12. DMAIC in CPIControl • Developing a Process Control Plan • The Shewhart cycle • Late 1930s • the Deming cycle • Early 1950s • Quality Control Environment • PDCA

13. DMAIC in CPIControl Plan-Do-Check-Act (PDCA) • Plan: Recognize an opportunity, and plan the change. • Do: Test the change. • Check: Review the test, analyze the results and identify key learning points. • Act: Take action based on what you learned in the check step.

14. DMAIC in CPIControl • Components of a Process Control Plan • Establishing Process Characteristics for Inputs, Process and Outputs • Establish Specification • Define Measurement Technique • Define Sample Size • Define Sample Frequency • Define the Analytical Tool • Establish Reaction Plan

15. DMAIC in CPIControl Establishing Process Characteristics for Inputs, Process and Outputs • What are the CTQs/CTPs? • Y = f(X) + ε • Design of Experiments (DOE) • Failure Mode and Effects Analysis (FMEA)

16. DMAIC in CPIControl Establishing Process Characteristics for Inputs, Process and Outputs • Inputs • Lead Time (How long does it take to get it?) • Cost (Are we getting what we pay for?) • Quality (Defects) • Process • Cycle Time • Rework/Defects • Activity Cost • Outputs • Customer Satisfaction (same store sales, returns, complaints, attendance, etc.) • Unit Cost

17. DMAIC in CPIControl • Establish Specification • Voice of the Customer (VOC) • For Each Characteristic • What is Good & Bad? • Upper and Lower Control Limits • Example: Wait time for teller service.

18. DMAIC in CPIControl • Define Measurement Technique • How will characteristic be measured? • Manually • Automatically • Who will be responsible for the technique?

19. DMAIC in CPIControl Define Sample Size • How many measurements are required at each point in time? • Statistically Significant

20. DMAIC in CPIControl Define Sample Frequency • How often should the sample be taken? • Continuous • Incrementally • Seconds • Minutes • Hours • Daily • Monthly • Quarterly • Annually

21. DMAIC in CPIControl Define the Analytical Tool • How are the measurements evaluated? • Run Chart • SPC Chart • Alarm

22. DMAIC in CPIControl • Establish Reaction Plan • What do we do when the alarm goes off? • Predetermined course of action. • Who is notified? • When? • Standing around doesn’t put the fire out. • Well trained and disciplined firemen do.

23. DMAIC in CPIControl Return Process to Owner/ Stakeholders • The goal of the CPI team is to return the improved process to the owners. • Critical Factors • Stakeholder Involvement • Training • Audit Plan • Bottom Line Results

24. DMAIC in CPIControl Train Personnel • New Technology • New Methods • New Process • New Relationships • New Culture Change Management

25. DMAIC in CPIControl Establish Internal Audit Plan • Audits provide a method to routinely and periodically measure the overall performance of the process • Address the attainment of chartered objectives • Address the bottom-line

26. DMAIC in CPIControl Measure the Bottom-Line • Actual cost of the new process • Implementation and operations • Activity Based Costing

27. DMAIC in CPIControl Closure and Recognition The project cannot be closed and victory declared until all the paperwork is done. Prepare a Project Report

28. DMAIC in CPIControl Document Lessons Learned • Project charter: introduce the project’s problem statement, objectives and plan. • Summarize each stage of the DMAIC cycle: include objectives and results • Appendices: raw data, analysis results and a timeline of the actual activities • Expenditures required to implement the project, including lost capacity, material or labor. • Cost savings received to date and projected for the next three years. • The current status of the process and the control plan for the future. • Recommendations: future projects, future project leaders and sponsors, based on lessons from this project.

29. DMAIC in CPIControl Team Recognition • Publicize • Successes • Lessons Learned • Financial Rewards

30. DMAIC in CPIControl QUESTIONS ?

31. DMAIC in CPIControl The Road Ahead