Lean Six Sigma Champion SprangerBusinessSolutions.com 1 Lean Six Sigma Champion Training 1 Chris Spranger Spranger Business Solutions Founded management consulting firm focusing on Lean Six Sigma coaching/training/deployment. Have worked with hundreds of businesses and individuals across the United States ASQ Certified Six Sigma Master Black Belt BS in Industrial Engineering, University of Wisconsin - Platteville, and MBA from University of Wisconsin - Whitewater 2 1 2
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Lean Six Sigma Champion
SprangerBusinessSolutions.com 1
Lean Six Sigma Champion Training
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Chris SprangerSpranger Business Solutions
Founded management consulting firm focusing on Lean Six Sigma coaching/training/deployment. Have worked with hundreds of businesses and individuals across the United States
ASQ Certified Six Sigma Master Black Belt
BS in Industrial Engineering, University of Wisconsin -Platteville, and MBA from University of Wisconsin -Whitewater
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Activity: Introduction of Participants◦ Name
◦ Position, how long have you worked here?
◦ Experience with Operational Improvement?
◦ What are your goals for the training?
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Course Objectives•Understand the role of a champion and how to support a successful program
•Learn and apply principles of effective project chartering, planning, and execution
•Learn and apply facilitation skills in order to enhance your ability to engage others and obtain maximum results from improvement efforts
•Apply the appropriate Lean and Six Sigma tools to the execution of a Green Belt project
•Provide the confidence to guide improvement projects being facilitated by belts using the DMAIC structure
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Looking ahead▪Introduction to Lean and Six Sigma
▪The Mechanics of an Operational Improvement Program
▪Mindset, Skillset, Toolset
▪The role of a Champion
▪Leading Teams, Managing Change
▪Project Execution - Tollgates
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Lean Six Sigma ChampionINTRODUCTION TO LEAN AND SIX SIGMA
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Six Sigma – What is it?Six Sigma is a comprehensive and flexible system for achieving, sustaining and maximizing business success.
The Six Sigma approach is driven by:◦ Closely understanding customer needs◦ Disciplined use of facts, data & statistical analysis◦ Diligent attention to managing, improving & reinventing business processes
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Six Sigma – What is it?Three Short Definitions:◦ A statistical measure of performance
◦ A rigorous analytical approach to reduce or eliminate the root cause of problems
◦ A philosophy that fosters the concept that higher quality will result in lower cost, increased productivity and improved customer satisfaction
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Six Sigma – What it is NOT!It is not just STATISTICS!◦ Statistics are a tool, but there are other tools in the Six Sigma tool chest
It is not only a cost reduction program◦ Cost reduction is just one of many benefits of this approach
It is not a rigid approach◦ Six Sigma is flexible
It is not a panacea◦ Six Sigma is not suited for every situation
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Six Sigma - ResultsGeneral Electric increased profitability by $7 – $10 billion in five years
DuPont added $1 billion to its bottom line within two years of implementation
Bank of America saved hundreds of millions of dollars, and cut cycle times by more than half in the first three years
Honeywell saved $2 billion in direct costs and achieved record operating margins
Motorola saved $4.4 billion in four years
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The DMAIC MethodologyDEFINE the problem. Why is it important to the customer?
MEASURE how often or how much.
ANALYZE to determine what is causing the problem.
IMPROVE the process. Implement changes to reduce or eliminate variation and non-value added activities
CONTROL process inputs so that problems don’t reoccur
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)( ,...,, 321 xxxfY =
The project scope statement needs to clearly identify the project “Y”
The “Y” is driven by customer expectations
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1. Identify & quantify these “causes”.
2. Quantify the relationship between the causes & and the output (Y).
3. Improve & control critical “Xs” for sustained improvement of…
Input measures: quality, speed, cost of items or information coming to the process. (Xs)
Process measures: quality, speed, cost performance of points in the process. (Xs)
Output measure: quality, speed, cost metrics of your project. This is what your team is trying to improve the performance of. (Y)
)( ,...,, 321 xxxfY =
Inputs Outputs
Process
Xs
Xs
Ys
The overall goal of a lean six sigma project is to identify, improve, and
control the critical Xs that are highly correlated with
the Y of interest.
How does the Six Sigma approach work?▪Identifying what’s critically important to customers, and the overall business
▪Clearly defining the process or processes involved to deliver that product or service
▪Continuously improving those processes using a reliable, project based improvement methodology (DMAIC)
▪Selecting improvement activities strategically aligned with your business needs/objectives
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Six Sigma – Historical Perspective▪Motorola is credited with the inception of Six Sigma in 1987
▪Texas Instruments (1988) and IBM (1990) also adopted the methodology in the “early” years
▪General Electric put Six Sigma into practice in the mid 1990s.▪ Projects were more analytically selected to not only reduce process defect rates, but also
selected projects were aligned to GE business needs/objectives.
▪ GE also gave birth to the Six Sigma support infrastructure of Executives, Champions, Master Black Belts, Black Belts and Green Belts. The concept of dedicated black belts was practiced whereby full-time black belts were deployed on projects.
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Six Sigma – What is happening now?Today Six Sigma and Lean concepts are implemented as part of a core business strategy◦ Six Sigma provides the methodology of how problem solving, and improvement is to be done
◦ Management uses the appropriate tools to lead business improvement efforts
◦ Six Sigma, through the DMAIC methodology, is used to execute projects and report on progress
Involves application of statistical tools to projects that will produce a high return on investment
Project facilitators are referred to as Black and/or Green Belts
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The “Belt” Structure
Champions provide visible leadership for effective problem solving using the DMAIC strategy & guide the selection and monitoring of projects.
Deployment Manager oversees and manages the deployment of the Six Sigma program.
Process Owners provide valuable insight to the project team into the area that is being investigated and assume accountability for sustaining results.
Master Black Belts are experts in Lean Six Sigma Methodology and tools; coach, mentor and provide training support for Belts to identify, share and deploy best practices.
Black Belts demonstrate strong technical /analytical skills, ensure a process focus, coach the use of Lean Six Sigma tools, assist with 10-20 projects per year
Green Belts lead process improvement projects, encourage use of Lean Six Sigma tools, strive for continuous process improvement, complete 2-3 projects per year
Yellow Belts are educated on a core set of Lean and Six Sigma tools, apply tools to their daily job activities, strive to make “daily improvements”, educate peers on LSS tools and their uses
White Belts are provided a background perspective and education on Lean and Six Sigma. White Belt is typically an all employee general training
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Six Sigma – The Benefits▪Improved bottom line for the business
▪Increased customer satisfaction
▪Simplified work processes
▪Development opportunities for future organizational leadership
▪Systematic elimination of waste and poor-quality issues
▪Workforce empowerment
▪Business management based on metrics, rather than emotion and “gut feel”
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So, why is it called Six Sigma?“Sigma” is a Greek alphabet letter ()
◦ Used in statistics to describe variability
Process measurement starts by determining the mean (average)
We can measure how much a process differs from output to output using standard deviation
A “Six Sigma” process is defined as a process whose variation is no more than half the specifications
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We are comparing process performance to process requirements – with the aim of less than 3.4 defects per million opportunities!
Isn’t 99% good enough?
99% Good 99.99966% Good (6σ)
20,000 lost articles of mail every hour 7 lost articles of mail per hour
Unsafe drinking water for 15 minutes per day 1 minute of unsafe drinking water every 7 months
2 short or long airline landings every day 1 short or long landing every 5 years
550 incorrect drug prescriptions every day 68 incorrect drug prescriptions every year
No electricity for 7 hours each month 1 hour without electricity every 34 years
130 – 265 deaths due to hospital errors every day
17 to 34 deaths due to hospital errors each year
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A six sigma golfer who plays one round of golf each week will miss one putt every 76 years!
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Six Sigma Summary
Six sigma is an organization wide approach to statistically improving processes with the aim of
reducing variation. By reducing variation, processes are more consistent, reliable, and predictable.
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In your groups, list five examples of “real-world” situations where you get inconsistent results.
Lean Overview
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Historical Perspective
LEAN
▪Create Value (Customer Focus)
▪Minimize Resource Consumption
▪Focus on Time
▪Engage Everyone in Improvement
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A Lean Enterprise is one that:
▪Utilizes the knowledge of all company employees to create a high performance organization
▪Produces highest quality products or services that meet or exceed customer demands
▪Succeeds in reducing work-in-process, space usage, and cycle times
▪Strives to eliminates all non-value-adding waste and activities
▪Is totally committed to creating a culture of continuous improvement
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The Lean Concept of “Value”Value is defined by the customer’s perspective
The concept of value is categorized three ways:◦ Value Added: Activity that processes material or information to meet
customer needs
◦ Non-Value Added: Activities performed which do not contribute to meeting customer requirements
◦ Business Non-Value-Added: Activities that contribute to running the business, but do not directly add value to meeting customer requirements.
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Value-added time is the amount of time used for activities that the customer would be willing to pay for. All other activities are non-value-
added and should be scrutinized for possible reduction, simplification, or elimination.
Eight “Deadly” Wastes of LeanTransport - Moving people, products & information
Inventory - Storing parts, pieces, documentation ahead of requirements
Motion - Bending, turning, reaching, lifting
Searching/Waiting - For parts, information, instructions, equipment
Over production - Making more (or buying more) than is IMMEDIATELY required
Over processing - Tighter tolerances or higher grade materials than are necessary
Defects - Rework, scrap, incorrect documentation
Skills - Under utilizing capabilities, delegating tasks with inadequate training
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Lean Means SpeedIn most organizations, 95% of the time is spent waiting. Think of your work processes, is there ever waiting for……information…
…materials…
…people…
…communication…
…decisions…
…etc….
The goal of lean is to virtually eliminate wait time
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Lean Means SpeedLess than 20% of the processes cause the majority of the time delay –they are the TIME TRAPS!!
Identifying and prioritizing the Time Traps ◦ At the most basic level, it’s all you need to know!
Lean principals apply to any process: manufacturing, clinical process, office processes, service processes, etc., etc., etc…
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Lean Improvement Cycle
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Source: www.lean.org
Lean Summary
Lean is a systematic approach to identifying and eliminating waste (non-value added activities) by
analyzing the process flow through the eyes of the customer in order to reduce the time and effort it takes to
▪Champion and Operational Improvement Approval to proceed
▪Proceed with exceptions (no sign off until resolution)
▪Stop the project (generally less than 5% of the projects)
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The Champion’s Role
Inquiry and examination of the project status and team’s work
Avoid judgement, confrontation, and directing
They are working on the project; the champion is working on developing their thought process and leadership skills
“could you explain how you arrived at that conclusion?”
Vs.
“that’s not accurate…why didn’t you just…”
IMPORTANT: Always ask, “how can I help?”
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The Leader’s Role
▪Pre-work to prepare for the tollgate
▪Schedules the tollgate with the appropriate attendees
▪Presents the work done, tools used, conclusions reached, and answers the core questions
▪Reveals any team/stakeholder concerns
▪Reveals any timeline concerns or potential barriers
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The Operational Improvement Manager
▪Provides advice on tools, approaches, change management, structure
▪Evaluates the effectiveness of the tollgate
▪Provides feedback to the Team Leader to help them improve
▪Provides feedback to the Champion to help them improve
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DMAIC Tollgate standard agenda▪The project leader will reintroduce the project goal and identify the current project phase
▪The project leader will present the data, tools, thought process, evidence and conclusions to the Champion and the Black Belt
▪The Champion and Black Belt will create discussion with open ended questions
▪Make sure the conversation stays centered on the current phase –DO NOT JUMP AHEAD!!!
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The DMAIC ProcessTHE DEFINE PHASE DELIVERABLES
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The Define Phase Roadmap▪Charter▪ Problem statement
▪ In Scope / Out of Scope
▪ Clear Goal Statement
▪ Team Members
▪ Estimated Project Timeline
▪Visualize the Process▪ SIPOC Diagram
▪Voice of the Customer Analysis▪ Affinity Diagram > Critical To Quality Tree
▪Determine Stakeholders and Plan to Keep them Informed▪ ARMI
▪ Communication Plan
▪Tollgate Approval
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Project Charter: (Title Here)
Basic Information Team Members (Name, Role)
Location/Department:
Leader:
Project Sponsor:
Project Champion:
Process Owner: In Scope Out of Scope
Financial Rep: • •
Coach:
Business Case/Problem Statement
▪ Currently…
▪ Why is it important to the Business?
▪ Explain the problem to be solved (What, Where, When, To What Extent, I Know
Because).
Estimated Project Timeline
Planned Completion Actual Completion
Project Goal Statement (SMART) Define
▪ To improve process from “XX” to “YY” by “ZZ/ZZ/ZZ” Measure
Analyze
Improve
Control
Re-Measure
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Voice of the Customer Analysis
Determine Determine measurable specifications
Create Create a critical to Quality Tree
Sort, group and summarize Sort, group and summarize (affinitize)
Gather Gather information about needs and wants
Identify Identify who your customers are (internal and external)
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Affinity Diagram
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Critical to Quality Characteristics (CTQC) Tree Diagram
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High Level SIPOC DiagramS
SuppliersI
InputsP
Process
OOutputs
CCustomers
Grind Coffee
Put Filter in Coffee Maker
Measure Grounds and dump in filter
Pour water in reservoir
Press start
Enjoy Coffee
Ground Coffee
Filter Ready
Grounds Ready
Water Ready
Brewed Coffee
Caffeinated Drinker
Coffee Beans
Coffee Filter
Measuring Spoon, Grounds
Water
Electricity
Brewed Coffee
Measure and Dump (step 3)
Measure and Dump (step 3)
Press Start (step 5)
Press Start (step 5)
Coffee Drinker
Coffee Drinker
Local Coffee Co.
Ed’s Grocery
Drawer,Grind Coffee (step 1)
City Water Commission
Zap Electric Co.
Press Start (Step 5)
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Team Members & Stakeholders
Responsible – the people who will do the project work. These are your “core team members”.
Accountable – The people who “own” the process being worked on. These are typically your Sponsor, Champion and Process Owner.
Consulted – People who may need to be consulted at some point throughout the project and provide assistance or expertise. These are resources that are not core team members.
Informed – People who may be impacted by the future changes or be curious about what is happening with the project. These are interested parties who need to be kept informed.
Causes are framed as inputs/problems, NOT SOLUTIONS or “things” we want to do.
As a facilitator – Ask questions like, “what is it about the methods we are using that could be causing this problem?”
What do we believe to be the primary causes?
Narrow using n/3 Technique◦ Count total causes (n)
◦ Divide by 3
◦ Give every team member n/3 votes
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What evidence do we have?
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Project Y: Service Turn Around Time
X How We Know It Contributes to the "Y" Analysis Tools Used
Staff Travel Time17 minutes of every hour is spent walking while doing work tasks. 78% of the walking is to the copier and back to the desk.
Direct observation, stop watch, spaghetti diagram, Pareto chart
Paperwork Errors A ‘bunch’ of these happen every week.
Work schedules
51% of the forms are dropped off in the last hour of the work day and there is not
enough time to complete them before the end of the shift. Additionally, with the
AM work tasks, many of the forms that are dropped off at the end of the day are
not touched again until the following afternoon.
Approval path We think this is a big issue. N/3
Theories are – just theories
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“What data is there to support or refute our theories?”
Blinding flash of the obvious
Need more data, graphical analysis, statistical analysis◦ To increase our confidence in the x/Y relationship
◦ To communicate the relationship
Always question your “assumptions”
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Graphical AnalysisWhy graphical analysis?
◦ A picture tells more than the written word
◦ Graphs help us spot patterns, trends, anomalies
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Source: Minitab 17
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Statistical AnalysisStatistical analysis is about breaking through biases to find patterns with variables – to identify the “high leverage” opportunities.
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What are the target values for the x’s?From isixsigma.com, “Design of experiments (DOE) is a systematic method to determine the relationship between factors affecting a process and the output of that process. In other words, it is used to find cause-and-effect relationships. This information is needed to manage process inputs in order to optimize the output.”
Identify quick winsA “Quick-Win” is an improvement opportunity that presents itself
What does a “quick win” look like?◦ Minimal effort and planning
◦ Less than 2 people or two weeks to complete
◦ Near certainty of an immediate improvement
“Quick-win” rule: if there is any doubt, or any question how implement, just consider the idea during the improve phase – that’s your next stop anyway!
Describe the relationship between the inputs and the output (X’s and Y)
What are the primary root causes that you want to focus on?
What evidence do you have that demonstrates each of the X’s impact on the Y?
Based on the validated and prioritized root causes, what is the target value for each of the X’s?
What quick wins can be implemented?
POTENTIAL QUESTIONSWhat tools did you use to analyze your data?
What are the significant causes (Xs) that are effecting the output (Y)? What are the improvement goals for each of the Xs?
How did you determine the significance of each of the causes (Xs)? How do you know they are contributing to the problem (Y)?
Show me your process map? What non value-added steps did you identify?
Did you determine the takt rate? What does this mean in terms of your improvement effort?
Did you determine how this (Xs) impacts the customer?
Anything I need to know about?
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Focus the conversation on describing “why is it broke?”
The DMAIC ProcessTHE IMPROVE PHASE DELIVERABLES
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The Improve Phase RoadmapThe purpose of the Improve phase of the DMAIC process is to find and implement solutions to the vital few (X’s) that were identified as an outcome of the Analyze Phase – in order to
achieve a new level of performance.
How we get there…◦ Identify potential solutions
◦ Determine the best set of solutions
◦ Evaluate risks associated with changing the process
◦ Test solutions
◦ Full solution implementation
◦ Measure new performance vs. baseline
◦ Document new process
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Recall: Key Inputs Summary Form
Evidence and
conclusions
about the
relationships
between X and
Y.
Project Y: Service Turn Around Time
X How We Know It Contributes to the "Y" Analysis Tools Used
Staff Travel Time17 minutes of every hour is spent walking while doing work tasks. 78% of the walking is to the copier and back to the desk.
Direct observation, stop watch, spaghetti diagram, Pareto chart
Paperwork Errors32% of the applications have missing information; it takes 10 minutes per application to hunt down the missing information
Checksheet
Work schedules
51% of the forms are dropped off in the last hour of the work day
and there is not enough time to complete them before the end of
the shift. Additionally, with the AM work tasks, many of the forms
that are dropped off at the end of the day are not touched again
until the following afternoon.
Checksheet, time series chart
Approval path
The approval process for the form passes through four different
departments with wait times at each department ranging from 1
day to 5 days.
Value stream map
What factors
(Xs) do you
believe are
causing the
problem (Y)?
Analytical tools
used
Like in a court of law, X’s are innocent until proven guilty…
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Solution Summary Table
Key factorsWhat did we do
to improve it?
Project Y: Service Turn Around Time
X Solutions ImplementedStaff Travel Time
Paperwork Errors
Work schedules
Approval path
Key Deliverables of the Improve Phase
How did you plan and execute
the full implementation?
What did you learn from your
pilot test?
How did you identify,
evaluate, and prioritize
solutions?
How did you evaluate risks?
What evidence shows the solutions
were effective?
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What does the new process look like?
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How did you identify, evaluate, and prioritize solutions?
With a group of team members:
◦ Brainstorm potential solutions for each X
◦ Use silent brainstorming techniques if needed
◦ Get many possible solutions for each X
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Solution Selection Matrix
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Solution DescriptionTechnical Feasibility
Investment Product CostProduct Performance
Development Time
Development & Investment Cost
Total sum of weight x rating
0
0
0
0
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How did you evaluate risks?
Prior to taking action
◦ What could go wrong?
◦ With the solutions?
◦ With the implementation?
Use a Failure Modes and Effects Analysis (FMEA) to evaluate and prioritize risks in a structured way
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Simple FMEAFMEA
Process Name: Left Front Seat Belt Install
Process Number: SBT 445
Date: 1/1/2001 Revision Level: 1.3
FAILURE MODE
A) SEVERITYB) OCCURRENCE
Probability
C) DETECTIO
N Probability
RISK PRIORITY
NUMBER ACTION TO IMPROVE REVISED
VALUESRate 1-10 Rate 1-10 Rate 1-10 RPN
10=Most
Severe
10=Highest
Probability
10=Lowest
Probability AxBxC A B C RPN
1) Select Wrong Seat Belt
Color 5 4 3 60 02) Seat Belt Not Fully
Tightened 9 2 8 144 03) Trim Cover Clip
Misaligned 2 3 4 24 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
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Pilot Testing
We need to test the solutions and the implementation of the solutions
We want to “prove out” the solutions while being as least disruptive as possible
Think small >> how can you implement the solutions on a subset of the process?
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How did you plan and execute the full implementation?
Use a documented action plan to organize the full-scale implementation
Work with a team to brainstorm all the actions that need to be completed before the “new process” is completely implemented
◦ Assign responsibility
◦ Build out a detailed plan with planned dates
◦ Establish a meeting frequency to move the plan to completion
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Action PlanAction Item Who Estimated Start Date Estimated Finished
DateCompletion Date
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What evidence shows the solutions were effective?
▪After the solutions are implemented, we need to re-measure to understand new performance.
▪Go back to your baseline measure (remember your SMART objective?)
▪We need data to prove that a performance change happened (with the project Y)
DMAIC Tollgates▪Tollgates are a forum for the champion, process owner, green belt, and black belt to re-convene, discuss progress, obstacles, etc.
▪Before the project can move from one phase of the DMAIC process to the next, the belt must obtain champion approval.
▪It is the Belt’s responsibility to schedule the tollgate meetings (including their coach!) and ensure the project is staying with the project timeline.
▪You (champion) will be asking questions at the tollgate meeting, make sure…▪ They have evaluated with the appropriate depth
▪ They have used an analytical approach (tools)
▪The single biggest goal of improvement projects is to increase the Belt’s abilities to lead projects and solve problems!
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Lean Six Sigma SummaryLean-Six Sigma is a fact based, data-driven philosophy of improvement that
values defect prevention over defect detection. It drives customer satisfaction and bottom-line results by reducing variation, waste, and cycle time, while
promoting the use of standard work and flow, thereby creating a competitive advantage. It applies anywhere variation and waste exist and should involve