What do CSI, Oglethorpe and Six Sigma have in common?

1. What do CSI, Oglethorpe and Six Sigma have in common? Victor Kane – KSU Associate Professor Department of Mathematics and Statistics

2. Orientation Overview • What is Lean Six Sigma? • Origin of Lean Six Sigma • Process Improvement Organizational Model • Quality Awards Using Process Improvement • KSU Customer Service Initiative • Research Activity in Six Sigma • Six Sigma Jobs: http://www.indeed.com/

3. 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.

4. 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.”

5. Origin of Lean Six Sigma

6. Six Sigma Begins

7. Lean Six Sigma Begins

8. 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

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

10. Lean Six Sigma Improvement Strategies 1) Defects – what is not done right the first time 2) Process Analysis and Simplification 3) Find and Optimize Process Key Measures that impact cost/satisfaction. Cost improvement is an outcome not the primary measure. 4) Rationalize Flows of Material & Information 5) Standardization of Work Methods 6) Error Proof Process Steps 7) Benchmark Similar Processes

11. 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.

12. Business Processes Corrective & Preventive Action Internal Auditing Customer Satisfaction Document Control Data Control 1) Translation of Req’mts 3) Combining Inputs 2) Processing Inputs 4) Organizational Records Value Added Process Management Review Quality Planning Standard Operating Procedures Quality Objectives Purchase Records Personnel Training Communication Process Map Elements Input Customer Requirements Output Customer Satisfaction

13. 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

14. Reviewing process for a student with new SAT / ACT scores who has previously been reviewed As Is March 01, 2010 Start New SAT/ACT scores Total Processing Time: 25 days Number of scores received per month 2010 : Jan: 2,028 SAT, 1,768 ACT Feb: 387 SAT, 516 ACT System uploads scores to the file Duration: 1 day Scores operator downloads scores into applicants ‘ files Duration: 1 day Scores operator generates report of student files with new SAT/ACT Duration: 1 day Scores operator organizes and cleans the report Duration: 20 days Scores operator gives report to freshman entry operator Duration: 1 day freshman entry operator reviews the file Duration: 1-2 days Student Accepted already Score above minimum standard No No Yes Yes freshman entry operator reviews Learning Support requirements freshman entry operator accepts student Acceptance Letter End

15. 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

16. Organizational Perspective • What is the “Big Picture”? • Are these activities interrelated? 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?

17. Criteria Framework: A Systems Perspective

18. 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

19. 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

20. 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….”

21. 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/

22. 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

23. 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 service across all areas of service in the state.

24. 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. KSU Linda Lyons • Plans are developed each FY with identified units. • Outline clear and measurable ways to track the campus' progress toward improved customer service.

25. 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.

26. 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”

27. 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”

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. Research Topics in Six Sigma Six Sigma Project Steps - DMAIC 1) Define 2) Measure 3) Analyze 4) Improve 5) Control

30. Research Topics in Six Sigma Six Sigma Project Steps - DMAIC 1) Define 2) Measure 3) Analyze 4) Improve 5) Control Measurement Systems Analysis MSA Accuracy On Target Operator Error Reproducibility Gage Variation Repeatability

31. MSA Project Applications • Industry – What is diameter of an oval hole? • Service (Business, Health Care, Government, etc.) … • What is service quality? • What are defects, service accuracy? • What are Key Measures? • Education – Define measures for…… • Student Competency • Effective teaching • Stakeholder Satisfaction

32. Traditional MSA – GRR Study Gage Repeatability and Reproducibility (GRR) Study MSA Accuracy Repeatability & Reproducibility Random Effects ANOVA for Parts yijk = μ+ Pi + Aj + (PA)ij + 𝝐ijk Study Reference Parts Fixed Bias Inference Test for Reproducibility Estimate % Tolerance: Repeatability Reproducibility

33. New MSA Gage Accuracy, Repeatability & Reproducibility (GARR) MSA Accuracy Repeatability & Reproducibility Estimate % Tolerance Random Bias Repeatability Reproducibility Test for Reproducibility 2) Test for Random Bias 3) Test for Constant Bias

34. GARR Summary of Results • Requires Reference Gage & Measurement Operational Definition for “True” Measures • Obtains Traditional R&R Measures • Accuracy is estimated with three parameters: constant bias, random bias & an interaction. • Meaningless F-test replaced by three bias tests all in one-step model ANOVA • Much improved MSA diagnostic information

35. Thank You!! May your processes be productive and satisfy your customers…. Question: “What do CSI, Oglethorpe and Six Sigma have in common?” Answer: ??? Process Focus!!