Green Belt Certification Chapter 6

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© 2006 MHTC, Inc. © 2006 MHTC, Inc. Green Belt Certification Chapter 6 Lean Six Sigma for Government Certification Series

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Lean Six Sigma for Government Certification Series. Green Belt Certification Chapter 6. Introduction to Continuous Process Improvement (CPI) DMAIC (CONTINUED). DMAI C in CPI Control. Control Stage Objectives Standardize new process procedures - PowerPoint PPT Presentation

Transcript of Green Belt Certification Chapter 6

Page 1: Green Belt Certification Chapter 6

© 2006 MHTC, Inc.© 2006 MHTC, Inc.

Green Belt Certification

Chapter 6

Lean Six Sigma for Government Certification Series

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Introduction to Continuous Process Improvement (CPI)

DMAIC (CONTINUED)

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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

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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

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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”

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DMAIC in CPIControl

Standardize and Control the Process Changes

– Standard Procedures

– Statistical Process Control

– Engineered Process Control

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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

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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

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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?

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DMAIC in CPIControl

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DMAIC in CPIControl

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DMAIC in CPIControl

• Developing a Process Control Plan – The Shewhart cycle

• Late 1930s

– the Deming cycle

• Early 1950s

– Quality Control Environment

– PDCA

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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.

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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

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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)

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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

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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.

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DMAIC in CPIControl

• Define Measurement Technique

• How will characteristic be measured?– Manually– Automatically

• Who will be responsible for the technique?

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DMAIC in CPIControl

Define Sample Size

• How many measurements are required at each point in time?

• Statistically Significant

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DMAIC in CPIControl

Define Sample Frequency

• How often should the sample be taken?– Continuous

– Incrementally

• Seconds

• Minutes

• Hours

• Daily

• Monthly

• Quarterly

• Annually

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DMAIC in CPIControl

Define the Analytical Tool

• How are the measurements evaluated?

• Run Chart

• SPC Chart

• Alarm

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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.

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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

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DMAIC in CPIControl

Train Personnel

• New Technology

• New Methods

• New Process

• New Relationships

• New Culture

Change Management

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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

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DMAIC in CPIControl

Measure the Bottom-Line

• Actual cost of the new process

• Implementation and operations

• Activity Based Costing

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DMAIC in CPIControl

Closure and Recognition

The project cannot be closed and victory declared until all the paperwork is done.

Prepare a Project Report

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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.

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DMAIC in CPIControl

Team Recognition

• Publicize– Successes

– Lessons Learned

• Financial Rewards

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DMAIC in CPIControl

QUESTIONS

?

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DMAIC in CPIControl

The Road Ahead