LSSG Green Belt Training

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LSSG Green Belt Training
Control How do we make it happen at a controlled
speed?
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DMAIC Six Sigma - Control

• Implement Controls
• Determine process capability, implement controls
  to ensure continuance assign process ownership
  and manage organizational change
• Standardize
• Create standard operating procedures create and
  implement training programs document project
• Evaluate Benefit
• Calculate the profit of the project and identify
  opportunities for replication

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Agenda for Control

1. Standardization
2. Financial Benefit
3. Change Management
4. Process Monitoring
5. Process Capability
6. Response Plan
7. Closure

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Standardization and Documentation
Role of SOP
To create uniformity, consistency and
reliability, to reduce errors to support
training needs
Steps necessary to create SOPs

• Purpose and frequency of task
• Who will perform the task?
• The steps involved
• Corrective actions if performed incorrectly
• Timing for updates and revisions

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Benefits of Standard Work

• Allows for Monitoring and Control
• Reduces Process Variation
• Provides Input for ISO9000 Certification
• Document what you do, and then do what you have
  documented!
• Helps Maintain the Gains from Improvement
  Projects

SOP Link osg.ivdgl.org/.../ Operations/CriticalUp
dateSOP
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Estimating Financial Benefits

• Benefit Estimation
• At start and end
• Decide computation method early
• Conservative and defendable
• Time value of money
• Benefits Issues
• Projection for 1 to 2
• years only
• Hard and soft benefits
• Certified by Finance Dept.

Treat this subject with great care!
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Estimating Benefits

• Case Study 1 Improvement, or Not?!
• Prior to the implementation of an improvement
  project, the mean number of defects was 80 per
  week, and the range of defects was 40 to 120. The
  improvement project yielded a 25 improvement in
  the defect rate, but no change in the range.
• The team reported the improvement to management.
  However, no change was observed by the customer.
• Why Not?

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Estimating Benefits

• Case Study 2 Estimating Future Benefits

An improvement project yielded an estimated
100,000 per year. The team reported a project
benefit of 500,000, as they believed that the
projects benefit would last for five years.
What is your opinion?
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Estimating Benefits

• Case Study 3 Estimating Future Benefits

An improvement project yielded an estimated
50,000 per year, based on a calculation that one
less person would be needed for a task, once the
new improved process is implemented. The CFO
said that she would only agree to certify this
benefit if the affected department would reduce
their salary budget by 50,000 for the next
year. What is your opinion?
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Change Management
Employee Skill Motivation Process Ownership User Acceptance
Process Needs Implementation Plan Management Signoff Rollout Validate Process
Others Training Materials and Plans New Equipment Space Requirements/Layout Changes
CURRENT STATE Preferred state Resistance to
change
TRANSITION STATE Anxiety and stress Significant
dislike
FUTURE STATE Unknown Undesired
People Side of Change Presentation
http//www.purdue.edu/hr/ppt/APSACHadley.ppt1
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Monitor

• Implement Visual Controls
• Monitor Metrics
• Control Charting
• Process Capability Analysis
• Periodic Reviews
• Audit Controls

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Choosing the Right Control Chart
Data Type
Attribute
Count
Continuous
P-Chart ( Defectives)
U-Chart ( of Defects/Unit, or DPU)
I-MR (or X-MR) Chart (n 1)
X Bar-R Chart (n 2 to 5)
X Bar-S Chart (ngt6)
Note The NP Chart and C Chart are alternatives
to the P and U Charts, respectively, but can only
be used for constant sample sizes.
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Process Management Control System
Process NameTravel Management Primary Customer of Process Business Travelers Customers CTQs Accuracy Timeliness Outcome Indicators (Ys) of Itineraries with a Policy Violation of Inaccurate Itineraries of Expenses not Reimbursed within 15 days of post
Process Map Outcome Indicators (Ys) Upstream Indicators (Xs) Capturing Data Misc. Information
PositionStep/Time Traveler Travel Agent
-Name -Numerator Denominator - Specification -Name -Numerator Denominator or Description Indicator Chart Type Physical Item to Check When to Check Who Performs Check Recovery Action -Indicator Formula -Procedures -Comments
Y1 of Itineraries with a Policy Violation Y2 of Inaccurate Itineraries Y3 of Expense Payments not paid within 15 days of Post X1 of Lowest Airfare X2 of 7 day advance tickets X3 Count of Ticket Problems X4 Time from Post to Submit X5 Time in Days from Submit to Approve X6 Time in Days from Approve to Pay (Client) X7 Time in Days from Post to Pay (AMEX) P chart P chart U chart I-MR I-MR I-MR I-MR Travel Agency Report Travel Agency Report Travel Agency Report Activity Report Activity Report Activity Report Activity Report Weekly Weekly Weekly Weekly Weekly Weekly Weekly Connie Connie Connie Tim Tim Tim Tim Consult with Group Consult with Group Consult with Travel Agency Consult with Group Consult with Group PCMS process may need to be measured.

Arrange Travel
Rev Date Change Log Describe Revisions By Apppr


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Response Plan

• Mistake Proof
• Identify Gaps
• Develop Action Plans
• Implement Dashboard Triggers
• Monitor Employee Suggestions
• Foster Continuous Improvement

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Project Closure

• Identify key lessons learned
• Update knowledge management repository
• Identify opportunity for replication
• Revise budgets to reflect benefits
• Celebrate and sunset teams
• Communication to stakeholders