1. 2 DAY PROGRAMME ON
LEAN
&
SIX SIGMA
MANUFACTURING
PRACTICES
Faculty: Prof. A. Rajagopal,
HEAD, SQC&OR UNIT
INDIAN STATISTICAL INSTITUTE
Ph: 0422-2441192
mobile no +91 98442245219 mail id
abramaya@hathway.com
1
2. STATISTICS AS A KEY TECHNOLOGY IS NOT MERELY AN
OPERATIONAL TOOL FOR PROFITABLE BUSINESS. BUT AS A
POWERFUL ACCELERATOR AND CATALYST FOR ECONOMIC
DEVELOPMENT
PROF: P.C.MAHALANOBIS
2
3. ABOUT THE INSTITUTE
PIONEERING QUALITY MOVEMENT IN INDIA BY
SQC & OR DIVISION OF ISI
70 years of existence as a centre of excellence promoting
statistics as a key technology.
One of the world‟s leading organization recognized as an
Institute of National Importance.
At the Initiation of founder Prof.
P.C.Mahalanobis, Dr.Walter Shewart visited the institute in
1947 to introduce SQC in the industries particularly in the
textile sector in a significant way.
Successfully demonstrated SQC / SPC not only as operational
tool for profitable business but also as a powerful accelerator
and catalyst for economic development.
3
4. Every year about 100 organizations are benefited in
following this approach in different sector, Private – Public –
Government, around the country. Over 10,000 projects has
been carried out so far.
Now Coimbatore Unit is introducing this approach to small
scale sector also based on the widespread experience in the
application of Textile sector.
Objective:
Improve Quality
Reduce Waste / Rework / Rejection
Increase Productivity
Best utilization of resources including time.
4
7. TO BE THE FIRST AND FAST PLAYER
Price
Willingness to
pay
Quality
PPM
Competitive
Edge
Time
7
8. TODAY’S BUSINESS ISSUES:
Quality and price are two axis of business so long. The Third axis
emerged as -"THE TIME"- the factor taking leading position in business.
“SPEED" is the need of hour. “To be FAST and to be FIRST has become the
challenge".
Conventional Business approach is moving towards higher production
(Quantity), which some time affects the Quality and may force to sell in
discounts or as seconds, and to carry out "High Inventories“
“Quality in time" at the "least cost" is the mission statement, moving
ahead in this changing environment.
"Statistical Methodologies" -that study the uncertainties, Analytical
approach that economies the cost and which minimizes the waiting time/ idle
time through such “No investment”- “No cost tools” enabled to maximize the
return on valued resources.
8
9. TAKING OF THE BLINDERS…
“In strategy it is important to see distant things as if
they were close and to take a distanced view of close
things”
Miyamoto Musashi
The Book of Five Rings
9
10. COMPETITIVE REQUIRES INNOVATION
No existing market share is safe today, no product life is
indefinite. Not only is this true for high technology, but it
is also true for all consumer products. Competition will
tear away market niches and technology advantages from
the established business through the weapon of
innovation. Companies will become merely a shadow of
their „glory days‟ or will vanish if they do not find a way
to re-create their market success through a steady stream
of innovative products and customer – oriented solutions.
10
11. INNOVATING FOR COMPETITIVENESS
Innovation requires the planned abandonment of
established, familiar, customary or comfortable ways of working…
whether in product or services, competencies or human
relationships or the organisation itself.
Business
Assessment
Break through
Planning System
Strategic Change
Decision Management
Making
Conclusion: Innovation means that you must be organized to allow
constant change.
11
13. TIME CRESIS MANAGEMENT:
Crisis involves two aspects. The cresis created by factors within one‟s
control and such crisis can be avoided. Then those crisis created by factor‟s
beyond one‟s control and have to be faced.
Major cresis can be avoid, if we act upon a situation at the right time.
More often than not, there are two tendencies that present us from acting at the
right time.
Postponement of the unpleasant
Non recognition of the problem
PROCRASTINATION CREATES CRESIS:
The tendency to do what ii easy, trouble free, and pleasant and leave for the
future the issues that are difficult, Thus the difficult issues keeps piling up. They
become irritants. We do not want this because it remind us of our inefficiency
and incapacity to face unpleasant issues. A thing undone always remain with us.
13
14. DO THE UNPLEASANT FIRST:
We can not expect every thing in life to be pleasant. Like the two
sides of the coin, the unpleasant always goes with the pleasant.
The one who does not postpone making a decision, right or
wrong, to fulfill a responsibility, that person alone can be successful.
Postponing something because it is unpleasant is wrong. It has the
potential to create a crisis and when it occurs, we will be inadequately
equipped to face it.
RECOGNIZE THE PROBLEM AND ACT:
We get used to the problem so much so chronically, that we don‟t recognize
it as a problem. When there is a problem, we tend to say, “There is no
problem, Everything will be alright”. But it will not be all right.
14
15. MURPHY’S LAW:
What can go wrong, will go wrong. The possibility of something
going wrong is much greater than its going right. One can act upon a
problem, however small it is, only when the problem is first accepted. Action
presupposes a decision, a will, and the will can exists, only when there is
recognition.
KARMA:
“Everything will be all right if my karma is good”. Karma does not
work that way, the theory of karma is not fatalism. It does not justify passing
the buck. It pins down the responsibility upon us.
so accept problem as it occurs.
15
16. DEALING WITH THE ISSUES:
For any business man, interference from competitor will be a problem.
This is not created by him. This has to be faced. This requires inner strength. It is
like learning to drive a car. The instruction cannot reproduce all possible traffic
situations. The learner has to deal with particular situation as they occur.
EVERY EFFECT IS A CALCULATED RISK:
When you make a business projection for the following year, factors
like potential demand, availability of raw material, changes in tax structure,
shrikes are taken in to account.
Since every intelligent effort involves a calculated risk, only two results
can be expected from every effort – Success to different degree – Failure to
different degree.
With every failure, a person seems to become more and more frightened
and a time comes when are is not able to act at all. So it is important that we are
prepared for failure in our effort, because success may not always come. Our
power are limited, and there are factors beyond our control.
16
17. ACCEPT LIMITATIONS:
To be for failure, it is necessary to recognize one‟s limitations. Our
knowledge is limited and so we can not avoid many situations from occurring-
otherwise we could avoid all accidents.
sometime we have the knowledge but our power is limited and we
feel helpless . If you permit yourself to be depressed for reasons you seem to
have no control over, you become helpless and the outside factors will make
you more and more inefficient and ineffective.
Depression is a reaction. In action, you have freedom to exercise your
will.
Acceptance of facts is a precondition to an action, Non –acceptance is
an ideal condition for reaction – in fact Non- acceptance itself is a reaction. Non
–acceptance does not alter the facts- the reaction creates a chain of reactions.
SO ACCEPT THE FACTS AND KEEP ACTION.
17
18. TIME PRIORITIZATION:
Water, Tumbler, pebbles, sand, stones, grane . All can be accommodated, if it is
planned in priority while filling the tumbler without pilferage. We can find time for
anything, provided we have passion for it.
GOALS MUST BE CLEAR:
Nobody works for failure. You do not have to make an effort to achieve a failure.
Sometimes people invest in failing business for tax purposes. It is not a real failure. It is a
calculated achievement.
CORPORATE MANAGER:
BE CLEAR ABOUT GOAL.
What is to be accomplished. What is expected out of me. I must also know, what I
expect of those who works for me.
PRIORITIZING GOALS:
With out conflict
Based on resources (Time, Manpower, resources)
Be concern with immediate plan without getting bogged down by the scale of
the project.
18
19. “What ever a leader does, other people do. The very thing.
What ever the upholds as authority, an ordinary person
follows that”.
- BHAGAVATGITA.
KRISHNA TO ARUGUNA:
If you runaway from this battle field, all others will also
follow you. If you fail to do what is to be done, others will also do
exactly that, because you are leader, whether you like it or not.
- Set our Example.
19
21. Understanding lean
Lean:
A systematic approach to identifying and eliminating waste
{non- value-added activities) through continuous improvement in
pursuit of perfection by flowing the product at the pull of the customer.
Lean champion:
Subject matter expert in the tools of lean typically chosen to
lead lean training, lean projects, and lean transformation.
Lean enterprise:
Any organization that continually strives to eliminate waste,
reduce costs, and improve quality, on-time delivery, and service levels.
21
22. Lean production:
The opposite of mass production.
Muda:
A Japanese word, usually translated as “waste”, that refers to
those elements of production that do not add value to the product.
Takt Time:
The available production time divided by the rate of customer
demand. Takt time sets the pace of production to math the rate of
customer demand and becomes the heartbeat of any lean system.
22
23. Example for takt time
Time Available Minutes
Shift 480
Breaks -10
Lunch -20
5S -10
Meetings -5
Changeover -220
Maintenance -5
Other -0
Total minutes 210
Total seconds 12600
Min 900
Demand Avg 1080
Max 1800
Takt time (Min) = 12600
900
Takt time (Avg) = 12600
1080
Takt time (Max) = 12600
1800
Min 14.0
Takt time Avg 11.7
Max 7.0 23
25. Ground Rules
• Everyone participates
• Anything is open to question
• Look at issues from larger perspective
• Ideas from anyone is respected
• Talk to the ideas generated ; not the person
• No complaining – unless accompanied with
solution and action plan
• No blaming
25
26. Leadership Vision
• “Quality . . . is the next opportunity for our Company to
set itself apart from its competitors . . .
... Dramatically improved Quality will increase employee
and customer satisfaction, will improve share and
profitability, and will enhance our reputation.
... “[Six Sigma] is the most important training
thing we have ever had. It’s better than going
to Harvard Business School.”
J.F. Welch
26
27. Definition of a process
A Process Is A Collection Of
Activities That Takes One Or
More Kinds Of Input And
Creates Output That Is Of
Value To The Customer
27
28. Processes
All activity takes place in terms of a process.
The quality of the process determines the quality of the output.
Shocking lessons
#1: Most people do not think in terms of processes. They
would rather think terms of isolated events.
#2: When convinced of
the value of thinking in
terms of processes, most
people still don‟t think in
terms of processes
#3:The word “process”
generates fear and
resistance.
6 28
29. Strategic Focus
“Voice Of The Customer” “Voice Of The Shareholder” Other Stakeholders
(Surveys) (Profitability Analysis) Employees
Lenders
Regulators
Stakeholder
Customer Requirements Prioritization Requirements
Internal Processes And Output Measures
Core Processes
And Output Measures
Key Subprocesses And Input Measures
Supplier
Quality
Black Belt Projects
29
30. Levels of Process
Core Process Equip. Order/ Pick-Up & Customer
Billing
(Level I) Mgmt. Leasing Delivery Service
CSR
Customer Branch Servicer CSR Verifies CSR
Subprocesses Qualifies CSR Enters
Calls For Schedules Fixes Customer Completes
(Level 2) Customers’ Case In CIS
Repair Repair Problem Satisfaction Case
Needs
Subprocesses Through
Microprocesses
(Level 3 And Below)
30
31. 3 Dimensions of Process
The Dimensions Of Process Focus
Management
Process Management
31
32. BPMS
What is BPMS?
A nine step methodology designed to create
ongoing accountability for managing entire
cross-functional processes to satisfy process
goals
32
33. BPMS
Why BPMS ?
• Proven methodology to optimize process
performance
• Establishes value-added metrics to assess
process performance – takes the guesswork out
of how a process is performing
33
34. BPMS
•Assess your previous mission/goals Process Mission Statement
Purpose:
A. •Evaluate if your process boundaries have changed
Importance:
Boundaries: Step 1: Create Process Mission
•Adjust and make corrections
Process Goals:
Process Management System
Process Owner
Beginning Point End Point
Step 2:Document Process
B. •Assess current CTQs and if they reflect process
S I P O C
•Assess if any new CTQs or measures are needed
•Adjust and make corrections Verbatim
Key
Issue
Process
Requirement
Step 3: Document Customer and
Process Requirements
Operational Definitions
CTQ
Proc.
Rqmt Output Proc Input
Data Owner
Definition
Step 4:Identify Output and
Unit
How Many
DPU Process Measures
C. •Develop should be process map
Process Management System
Step 5: Build Process
•Create a simple data collection plan Management System
Clarify
Data
Operational
Definitions Step 6 Establish Data Collection
Validate Data
Plan
System Display
80
•Assess if current dashboards are representative
UCL
Step 7: Process Performance
70
60
50
D. •Collect Data and populate dashboards
40
LCL
Monitoring
30
20
10
18- S ep
21- A ug
17- A pr
4- S ep
15- M ay
29- M ay
•Assess performance against targets
3- A pr
0
1- M ay
10- Jul
24- Jul
12- Jun
26- Jun
•Adjust and make corrections 25
20
15
Nov
10 $1,600
Step 8: Develop Dashboards with
Sep
5
0 $1,400
Jul
M ar
M ay
Jul
Jan
Jun
Feb
Sep
Oct
Nov
Dec
Apr
Aug
$1,200
May
10
$1,000
ar
9
M
8
Spec Limits and Targets
Jan
$800
7
0 5 10 15 6
$600
5
J a n M a r M a y J u l Se p No v
4
$400
3
2
$200
1
0
Jul
Jan
Jun
Feb
Se p
Oc t
No v
De c
Ma r
Ap r
Au g
Ma y
$0
J ul
J an
Sep
Nov
Mar
May
0 5 10 15
•Develop actions to address variation Trend Problem Step 9: Identify Improvement
Chart Pareto
E. Root
Cause
Corrective
Actions
Opportunities
34
35. Step-1 : Create Process Mission
Define process specific mission.
Mission statement of the plant
List out preliminary process goals
Measurable type
Attribute type
35
36. Step-2 : Define & Document the Process
Use SIPOC to define the process.
Ready for all plants
Use flow charts to create & validate process maps.
Yet to be incorporated
Flowcharts are to be drawn on four different perspectives on a process
What one think the process is.
What the process really is.
What the process could be.
What the process should be.
36
37. Use SIPOC to define the process.
Starting at the Top
Key business activities can be defined at different levels of the organization:
New Product Demand Demand Customer
Level 1 development Fulfillment Service
Generation
Level 2 Ordering
Producing Picking Shipping
Materials
Level 3 Mixing Filling Sealing Packing
Level 1 = highest -level view of work in the organization
Level 2 = work that flows across several departments or within a n entire
department or work area
Level 3 = a detailed view of of a particular process
30 37
38. Which Flowcharting Technique
Should I use?
Basic Activity Deployment
Flowchart Flowchart Flowchart
To identify the major To display the To help highlight
steps of the process complexity and handoff areas in
and where it begins decision points of a processes between
and ends process people or functions
To illustrate where in To identify rework To clarify roles and
the process you will loops and bottlenecks indicate dependencies
collect data
35 38
39. Types of Flowcharts Useful
for Understanding Process Flow
Activity Deployment
flowcharts flowcharts
Sales Technical Shipping Coordinator
31 39
40. Activity Flowcharts
Hotel Check-out Process Process Name
1 2 YES
Is there 3
Approach front desk Wait
a line?
Clear
direction of
Activity flowcharts are Numbered
NO flow (top to
bottom or
4
specific about what happens steps Step up to desk left to right)
in a process. They often 5
Clerk NO
6
capture decision points, Key of symbols
available?
Wait
rework loops, complexity, YES
7 Consistent
etc. Start/End
Give room number
level of
detail
Action/Task
8
Check bill
Decision
9
Charges NO 10
Sequence correct? Correct charges
YES
11
Clear starting
Pay bill and ending
Date of creation points
or update &
name of creator
40
41. Deployment Flowcharts
People or groups
Deployment flowcharts show listed across the top Invoicing Process
the detailed steps in a Sales Billing Shipping Customer Elapsed
Time
process and which people Steps listed in 1
Delivers goods
Time flows
column of person or down the
or groups are involved in group doing step or 2 8 page
Notifies sales of Receives
in charge
each step. They are completed delivery delivery
5 days
9
particularly useful in 3
Sends invoice to
customer
Records receipt and
claims against this
delivery
processes that involve the 10 days
4 10
flow of information Notifies billing
of invoice
Receives invoice
between people or 5
Files invoice
11
Checks invoice
against receipt
functions, as they help 12
Pays bill
highlight handoff areas. 6
Receives and
records payment
Horizontal lines
7
clearly identify
Reviews weekly
report of overdue
handoffs
accounts
41
42. Value - Added and
Nonvalue - Added Steps
Value-Added Step:
Customers are willing to pay for it.
It physically changes the product.
It‟s done right the first time.
Nonvalue-Added Step:
Is not essential to produce output.
Does not add value to the output.
Includes:
• Defects, errors, omissions.
• Preparation/setup, control/inspection.
• Over-production, processing,
inventory.
43
• Transporting, motion, waiting, delays. 42
43. How to Create
an Opportunity Flowchart
Value-Added Steps Nonvalue-Added Steps
Divide page into
Loop
two sections
Yes
• Value -added
Yes
section smaller
Loop
than cost-added-
only section No No
Time flows down the
page
Only join two Value - Loop Yes
Added steps with an
No
arrow if there are no
Nonvalue -Added steps
in between
47 43
44. Step-3 : Document Customer & Process Requirements
Types of customers.
Translating VOC into specific requirements.
this is the place for defining the QFD
44
45. VOC Process
1. 2. 3. 4. 5.
Identify Collect and Analyze data Translate Set
customers analyze to generate the customer specifications
and determine reactive a key list language for CTQs
what you need system data of customer into CTQs
to know then fill gaps needs in
with proactive their language
approaches
Outcomes:
A list of customers and customer segments
Identification of relevant reactive and proactive sources
of data
Verbal or numerical data that identify customer needs
Defined Critical-to-Quality requirements (CTQ)
Specifications for each CTQ
7 45
46. What is Critical to Quality
What is Critical to Quality (CTQ)?
What a customer tells us they want from our product / service or process output
CTQs are rendered from Voice of Customer (VOC)
CTQs must be specific
CTQs must be measurable
CTQs must be actionable
CTQs always have three elements:
CTQ Category (also known as an Output Characteristic or CTQ name, e.g. Claims
Processing Timeliness)
Customer Specification (customer’s requirement of our product/ service or
process, e.g. “30”)
Unit of Measure (how output is quantified by the customer, e.g. “Days”)
CTQ Example: Claims Processing Timeliness: 30 Days
Category Specification Unit of Measure
46
47. Example: CTQ Tree
One of 7 Management Tools – Tree diagram
Need Drivers CTQs
Low qualification of operator
Operation Easy to setup
(training / documentation)
Digital Control
MTBF
Ease of Operation Maintenance
Maintenance
and Maintenance Cost
Down time
Modification Mistake Proofing and
Documentation
Standardization Minimum special tools /
equipment required
General Specific
Hard to measure Easy to measure
23 47
48. Establishing a Performance Standard
• A performance standard translates customer needs into
quantified requirements for our product or process
Product/
Process % Trained
Characteristic
No. Trained against no.
Customer Measure identified for training in a
Need chosen subject
CTQ
Better Target
95 %
Throughput
Specification/
Tolerance 90%
Limit(s)
Defect Definition Below 90%
48
49. BPMS
Step 3 – Document Customer/Process Requirements VOC Guidelines
Internal Voice of Customer
After Clarifying, the
CTQ
Customer Sample CTQ’s
Key Issue(s) Is... Requirements
Customers
Reliability
Leadership Durability
Process Owners Accuracy
Stakeholders Timeliness
Failure Recovery
External Efficiency
Customers Cost Savings
Easy to Use
Clients Quick Response
Consumers
Regulators
Brokers
VOC Translation Process
Your Voice of Customer
Key Issues CTQ’s
Outputs Customer Requirements
Outputs of your Customer needs are Clarification of the Defined as customer Key issues are
process are designed stated in the language customer’s language performance translated into
to satisfy customer of the customer identifies the key requirements of a customer
needs profitably issues product or service requirements 49
50. Step 3 – Document Customer/Process Requirements VOC Guidelines
After Clarifying, the Customer
Voice of Customer CTQ
Key Issue(s) Is... Requirements
50
51. BPMS
Step 4 – Identify Output/Process Measures: Measurement Matrix Guidelines
C T Q T ree T em plate
CTQ S p e c ific C T Q M in im u m M a x im u m O u tp u t P ro c e ss In p u t
K ey Issu e
C u sto m er T a rg e t L o w er S p ecificatio n U p p er S p ecificatio n
M easu rem en ts M easu rem en ts M easu rem en ts
R eq u irem en t L im it (L S L ) L im it (U S L )
Process
Measurement Criteria
•The measure must be important
•The measure must be easy to understand
•The measure is sensitive to the right things and insensitive to other things
•The measure promotes appropriate analysis/action
•The measure must be easy to get
51
52. CTQ Template
C T Q T ree T em plate
CTQ S p e c ific C T Q M in im u m M a x im u m O u tp u t P ro c e ss In p u t
K ey Issu e
C u sto m er T a rg e t L o w er S p ecificatio n U p p er S p ecificatio n
M easu rem en ts M easu rem en ts M easu rem en ts
R eq u irem en t L im it (L S L ) L im it (U S L )
52
53. BPMS
Step 5 – Build Process Mgmt. System
Objectives: Consolidate work performed in steps 1-5 onto
one concise page which captures the essence of your
process. Establish process specs/targets, control
limits, and response plan for out-of-control/under-
performing metrics.
Why Is This Important?: A process management system
allows a process owner to quickly respond to performance
trends. It is an enabler for process optimization.
Tools : Control Plan
53
54. Step-5 : Build Process Management System
Measures & Targets.
Monitoring System.
Contingency Plan.
54
55. Process Management System
Process Description: Process Customer : Customer Requirements : Outcome Quality Indicators :
Process Flow Chart Checking
Measure Remarks
Target SOP/SOC/
LSL Checking Contingency Document
Desc. USL Item Frequency Resp. plan no.
Y1
Y2
Y2.1
X1
X2
X2.1
55
56. BPMS
Step 6 – Establish Data Collection Plan Guidelines
Reporting
Frequency
of Measures Sampling Plan
(Daily, Upper Lower Operation Green Yellow Red (what, where,
Weekly, Spec Spec Definition of Calculation/ Calculation/ Calculation/ Data Display when, how
Measures Monthly) Limit Limit Metric Definition Definition Definition Data Type Owner Method many)
Data Collection Roadmap
Develop Continue
Plan for Data
Operational Begin Data Improving
Consistency
Definitions & Collection Measurement
& Stability
Procedures Consistency
• Operational Definitions • Creating Monitoring
• Validating Measurement Systems
• Collecting Data • Training Data Collectors Procedures
• Sampling • Making Data Collection Activities “Error Proof”
56
57. Data Collection Plan
Reporting
Frequency
of Measures Sampling Plan
(Daily, Upper Lower Operation Green Yellow Red (what, where,
Weekly, Spec Spec Definition of Calculation/ Calculation/ Calculation/ Data Display when, how
Measures Monthly) Limit Limit Metric Definition Definition Definition Data Type Owner Method many)
57
58. BPMS
Step 6 – Establish Data Collection Plan Guidelines
Decision to Decision to
Collect New Data Sample
• Is there existing data to help with problem • It is often impractical or too costly to collect all
solving mission? of the data
• Is current data enough? • Sound conclusions can often be drawn from a
• Does the current data meet the process needs? relatively small amount of data
• Is the team just using data that is available? One BB to finalise sampling strategy
Validating Data Collection
Measurement Systems Considerations
• Data is only as good as the measurement system • Can the new data be generated through systems
used to gather it. Measurement systems must be modifications?
validated to ensure data is free from errors
• Can data collection be integrated into existing
• There are a variety of techniques to validate data work processes?
– consult a Quality representative or refer to your
• Is all data being collected necessary to calculate
six sigma training
process measures?
• Review the measurement system periodically to
• Can some data collection efforts be curtailed
ensure consistency and stability over time
because they don’t add value? 58
59. BPMS
Step 7 – Process Performance Monitoring Guidelines
Variation Over A Variation Over
Type of Data
Period of Time Time
Pareto Diagram Run Charts
Discrete Bar Charts Control Charts
Pie Charts
Histograms Run Charts
Continuous Box Plots Control Charts
Multi-Vari Charts
Upper
Control
Purpose of Control Charts Limit
•Determine whether or not process variation is due to
special cause or common cause variation Average
•Determine whether the process is in control or out of
control Lower
Control
Limit
Time
59
60. Process Performance Monitoring
All Repetitive activities of a process have a certain amount
of fluctuation .
Input, Process & Output measures will fluctuate.
Variation is the „Voice of the Process‟ – Learn to Listen to it
and Understand it.
60
62. BPMS
Step 8 – Develop Dashboards Guidelines
Dashboard Creation Roadmap
Key Considerations Identify Universe
of Potential Measures
• How do you want the information
displayed?
• To what level do you want to drill Narrow List of
down in the information? Measures
• How might you want to segment
the information for making critical
decisions?
Data Collection
• Who should access the
information?
• What supporting information do Determine Measures
you want to see? w/Best Relationship
• Lower level dashboards should to CTQ’s
roll-up to higher level dashboards.
Finalize Dashboard
62
63. Step 9 – Operate Process Management System &
Identify
Improvement Opportunities
External Continue
Environmental Control
Information Actions
Yes
No
Plan/Implement
Dashboard Process Satisfied with Improvement
Indicators Indicators? Actions to
Review
Correct
Internal
Environmental QC/SGA/
Information Quick Hit/
No Action Troubleshoot DMADV
DMAIC
Identify Problem Process Improvement Process Redesign
Diagnose Root Cause (process not capable
Remedy Cause of performing to
standards)
63
64. Process Management Chart
Process Name : Process Owner : Date :
Process Map Monitoring Response Plan
Target Data Process
USL collection Immediate Improvement
Measures LSL method Control/Fix projects
64
65. Project Y Alignment
Key output metrics that are
Business Big Y’s aligned with strategic
goals/objectives of the
business. Big Y’s provide a
direct measure of business
performance.
Process Y’s
Y
PROCESS Y
Key output metrics that
Y summarize process
Management Y performance
Project Y
Key project metric defined
from the customer’s
perspective
X1 X2 X3
Any parameters that
influence the Y
65
66. Project Identification
Customer wants and
needs should drive
our actions!
Who’s the customer? What’s the business
What does he/she strategy?
think is critical to Who in the business
quality? holds a stake in this?
Who speaks for the Who can help define
customer? the issues?
What are the
processes involved?
66
67. A GreAt Project Should…
Be clearly bound with defined goals
If it looks too big, it is
Be aligned with Strategic Business Objectives and
initiatives
It enables full support of business
Should have high Impact the Bottom Line
Be felt by the customer
There should be a significant impact
Work with other projects for combined effect
Global business initiatives
Show improvement that is locally actionable
Relate to your day job
Focus on key CTQ’s 67
68. Selecting the Right Projects
Delivered CTQ Importance
High
Impact
Medium
Impact
Low
Impact
Six issues in selecting a project:
Low Medium High
Process
Performance
Feasibility (Is it doable?)
Measurable impact
Potential for improvement
Resource support within the organization
Project interactions
Top priorities based on impact and performance:
strategic issues 68
69. Project Prioritization Matrix
The desirability of a project increases as you move from
the lower right to the upper left, and as the circle gets
larger
Hi Probability
of Success
IMPACT
Low
Med
Med
Low Hi
Low Med Hi EFFORT
69
70. Project Selection
• Success Factors
– Project scope is manageable
– Project has identifiable defect
– Project has identifiable impact
– Adequate buy-in from key stakeholders
• To Be Successful…
– Set up project charter and have it reviewed
– Measure where defects occur in the process
– Assess and quantify potential impact up front
– Perform stakeholder analysis
• Common Pitfalls
– Inadequately resourcing the project
– Duplicating another project
– Losing project momentum
– Picking the easy Y, not the critical Y
• Avoiding Pitfalls
– Identify and get committed resources up front
– Research the project database and translate from other projects where
possible
– Set up milestones and a communications plan 70
71. A Good Project
A good project:
– Problem and Goal Statements are clearly stated
– Defect and opportunity definition is clearly understood
– Does not presuppose a solution
– Clearly relates to customers and their requirements
– Aligns to the business strategy
– Uses the tools effectively
– Is data driven
71
72. A Bad Project
A bad project:
– Is not focused–scope is too broad
– Is not clear on what you are trying to fix
– May be an already-known solution mandated without
proper investigation
– Is difficult to see linkage to customer needs
– Is not clearly aligned with business objectives
– Has little or no use of tools
– Is anecdotal–not data driven
72
73. Project Chartering
A Charter:
– Clarifies what is expected of the team
– Keeps the team focused
– Keeps the team aligned with organizational priorities
– Transfers the project from the Champion to the
improvement team
73
74. Five Major Elements Of A Charter
1. Business Case
Explanation of why to do the project
2. Problem and Goal Statements
Description of the problem/opportunity and objective in
clear, concise, measurable terms
3. Project Scope
Process dimensions, available resources
4. Milestones
Key steps and dates to achieve goal
5. Roles
People, expectations, responsibilities
74
75. The Goal Statement
The Goal Statement then defines the
team’s improvement objective Specific
Definition of the improvement the Measurable
team is seeking to accomplish?
Starts with a verb (reduce, Attainable
eliminate, control, increase)
Tends to start broadly - eventually Relevant
should include measurable target and
completion date
Must not assign blame, presume Time Bound
cause, or prescribe solution!
75
76. 8 Steps To Bind A Project
1. Identify the customer
– Who receives the process output?
(May be an internal or external customer)
2. Define customer expectations and needs
– Ask the customer
– Think like the customer
– Rank or prioritize the expectations
3. Clearly specify your deliverables tied to those expectations
– What are the process outputs? (tangible and intangible
deliverables)
– Rank or prioritize the deliverables
– Rank your confidence in meeting each deliverable
76
77. 8 Steps To Bind A Project
4. Identify CTQ’s for those deliverables
– What are the specific, measurable attributes that are most
critical in the deliverables?
– Select those attributes that have the greatest impact on
customer satisfaction
5. Map your process
– Map the process as it works today (as is)
– Map the informal processes, even if there is no formal,
uniform process in use
6. Determine where in the process the CTQ’s can be
most seriously affected
– Use a detailed flowchart
– Estimate which steps contain the most variability
77
78. 8 Steps To Bind A Project
7. Evaluate which CTQ’s have the greatest opportunity
for improvement
– Consider available resources
– Compare variation in the processes with the various
CTQ‟s
– Emphasize process steps which are under the control of
the team conducting the project
8. Define the project to improve the CTQ’s you have
selected
– Define the defect to be attacked
78
79. Project Selection Workshop
2 Ways :
• Top- down method – More effective & High impact projects.
(Through CTQ selection workshop)
• Bottom-up method – Low impact & High numbers of projects
79
80. CTQ Selection Workshop
List down the Strategic Business Objectives
List down the Key Focus Areas to achieve the SBOs
Prioritize the KFAs
List down the core processes
List the impact of the core processes on the KFAs
Rank and prioritize the core processes
List down the performance indicators for the
prioritized list of core processes
Rank and Prioritize the CTQs
Generate projects list from CTQs
80
81. CTQ Selection Workshop
Step 1 - List down the Strategic Business
Objectives & Key focus areas of your
plant/deptt.
Sl.No SBO’s KFAs Wtg
1
2
3
81
