Accenture Process and Innovation Performance Solving Retail Problems Using Lean Six Sigma

7/31/2019 Accenture Process and Innovation Performance Solving Retail Problems Using Lean Six Sigma

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Solving Retail ProblemsUsing Lean Six Sigma


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About Accenture Process &Innovation Performance

The Accenture Process & Innovation

Performance service line takes an

end-to-end, process-based approach

to address key business challenges

such as complexity reduction, lean

manufacturing and operations, process

innovation, strategic cost reduction

and growth through innovation, in

order to create competitive advantage

for clients globally. We help ourclients become high-performance

businesses by enhancing the internal

capabilities needed to continuously

improve operational and innovation

performance. Accenture enhanced its

longstanding operations and strategy

expertise with the 2007 acquisition

of George Group, a recognized

market leader in process, operational

and business transformation, and

innovation strategy, whose capabilities

and offerings form the foundation of

this new service line.


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The rise of Lean Six Sigma in

retail

Lean Six Sigma (LSS) is a continuous

improvement methodology that

combines two of the most powerful

improvement engines available

to business today. Lean providesmechanisms for quickly and

dramatically slashing lead times and

waste in any process, anywhere in an

organization. Six Sigma provides the

tools and organizational guidelines

that establish a foundation for

sustained, data-based improvement

in strategically important, customer-

critical targets. Today, Lean Six Sigma

has grown beyond these problem-

solving roots and now encompasses

high-level analytical tools anddeployment guidelines. These tools

and guidelines give executives the

means to establish and maintain

strategy-to-execution links in their

efforts to become high-performance

businesses.

Lean Six Sigma in retail

seriesThis series of three articles explores

how LSS deployments designed

specifically for retail can drive

operational excellence throughout a

company, from corporate offices to

individual stores, and help retailers

drive high performance. The series

provides retail-specific insights

gained in working with pioneering

retailers deploying LSS. The articles in

this series cover the following topics:

1. Applying Lean Six Sigma Principles

in Retail Stores: A discussion of the

specific challenges retail companiesface and case examples highlighting

what some retailers have done to

overcome these challenges in

applying LSS in stores.

2. Solving Retail Problems Using

Lean Six Sigma: A look into solving

simple to complex business problems

using LSS tools and approaches.

3. Leadership in Retail Lean Six Sigma

Deployments to Achieve High

Performance: An exploration into the

necessary leadership roles and

discussion of leadership support in

successful LSS deployments.

Summary of first articleIn the first article in this series,

Applying Lean Six Sigma Principles in

Retail Stores, we discussed how the

robust problem-solving methodology of

Lean Six Sigma (LSS) has been

effectively adapted to many industries,

including retail, despite Lean Six

Sigmas start in traditional

manufacturing and services industries.

Proven by companies across industries,

the flexibility of LSS and the DMAIC

(define-measure-analyze-improve-control) methodology helps companies,

including retailers, adjust to specific

industry needs quite well.

Based on Accentures experience, we

believe LSS and DMAIC have achieved

strong results in retail for a number of

reasons. The use of LSS and DMAIC:

Enablesretailerstobetterdefine

the problem. Retailers tend tolist numerous issues but lose the

focus on what measures are notperforming at the right level.Oftentimes, companies cannotexpress what output measures willbe different and/or quantify theimprovement in the output measure.LSS also helps get to the processbehind the problem.

Mapsandmeasurestheprocess.

Retail companies tend to missthe process aspects of everydaywork and therefore miss the non-

value-add aspects of the process.Mapping and measuring the processhighlights the non-value add (waste)in the process.

Identifiescriticalprocessfactors

that have the most influence onkey output measures. LSS forcesthe team to identify the criticalfactors in the process that drives theperformance of the output measureby using data analysis to replaceexperiential or reactionary methods.

Addressing these critical factors isthe best way to get step-changeperformance that is sustainable.

Helpsensurechangewillbe

sustainable through a control planby identifying: 1) The process; 2)The critical process factors thatshould be monitored; 3) Methodsto monitor them (for example, themore visual the better); 4) Standardstate for the critical factors (in

other words, how they shouldbe performing to get the desiredprocess performance); and 5) Theresponse plan when the criticalfactors in the process are notperforming to standard. Followingthese steps allows corrections to bemade early in the process, before

the output misses targets.

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Lean Six Sigma (LSS) has long been

applied in other industries to drive

operational excellence. More recently,

the retail industry is discovering ways

to tailor this continuous improvement

methodology to the industrys unique

challenges to solve problems, execute

methodical changes and make

process-change decisions. By

addressing the unique challenges of

the industry as well as of store

environments, LSS can drive high

performance in retail as it has in otherindustries. Increasingly, retailers are

applying LSS using a variety of tools to

address problems with a wide range of

scope, complexity and impact. From

Kaizens to accelerated improvements

to enterprisewide Black Belt projects,

the LSS toolkit is large and diverse.

This article discusses various

approaches retailers can take to

effectively solve problems on their

journeys to high performance.

Few retailers would dispute the unique

nature and challenges of retailing.

With Lean Six Sigma, different

approaches drawing on a large toolkit

can be applied to solve a diverse array

of problems. If an issue affects all

stores in the United States, for

example, a solution may entail

executing a project at the corporate

level, but perhaps require

implementing another approach using

DMAIC (define-measure-analyze-

improve-control) methodology to

address local or district concerns. In

general, the use of LSS allows a

concurrent top-down, middle-out andbottom-up approach to process

improvement, creating a synergy of

activities designed to satisfy

customers, stakeholders and associates.

Not only can LSS be applied to a wide

range of problems, it also is flexible.

The flexibility of LSS is demonstrated

in the various ways in which the

approaches can be used effectively in

solving problems. Factors such as

scope, available resources, time tocomplete, and complexity can all

impact the overall project approach.

Along with the ability to lead and

influence a team, application of the

appropriate approach differentiates the

best LSS project leaders from the

average. From the basic to complex,

choice of LSS approaches is as much

an art as it is a science.

LSS projects use a disciplined approach

not only through the DMAIC process,

but also with strong project and

change management applications to

increase the probability of long-term

success.Evenwiththemostcarefully

crafted approaches and the best

project management, the success of

LSS projects also hinges on the people

factor, specifically the ability of team

members to unite. True problem

solving becomes attainable the

moment team members understand

that even the most diverse areas of the

business have similar issues and ways

of thinking. Although people are

creatures of habit, there are reasons

they continue to perform in the sameway. LSS approaches help bring

entrenched issues to the forefront

Lean Six Sigma deployments designed specifically for the retail

industry hold the potential to drive high performance for

companies.

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4

LSS DMAIC Methodology

DMAIC (pronounced d-may-ick) is the incremental processimprovement methodology of Lean Six Sigma. It is an acronymthat stands for five interconnected phases: Define, Measure,Analyze, Improve and Control. Practitioners who use LSS followthe DMAIC process strictly to ensure the improvements are

data-driven instead of led by conventional wisdom. The fivephases of the methodology are:

DefineWhat exactly is the problem? Identify and/or validatethe improvement opportunity.

MeasureWhat data do we have? Identify and collect criticalmetrics/data to demonstrate and understand the problem.

AnalyzeWhat does the data tell us about how good (or bad)we and the primary drivers of the process are? Identify andvalidate that the true root causes are being addressed.

ImproveWhat does the data tell us are the best possiblesolutions both from an impact standpoint as well as cost/benefit? Identify, evaluate and select the right improvementsolutions.

ControlWhat dowe put in place to ensure the problem staysfixed? Establish process controls and metrics so we donthave to solve the problem again next year.


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where they can be resolved and

remove the we vs. they mentality.

Removing this mentality is required for

fundamental process improvement.

Both change management techniques

and data analysis are powerful sets of

tools that help build this necessary

alignment of team members. Duringany project, project leaders must

collect and use data appropriately to

remove the possibility of decisions

based on emotion or experiential

anecdotes. In one case, accepted

conventional wisdom drove different

goals for each distribution center

because the mix of product was

different between centers. Over time,

the centers met or slightly exceeded

the established goals. During a BlackBelt project, test runs and data

analysis proved that despite the variety

of products, all of the centers should

perform similarlyand, in fact, at a

higher rate than any of the centers

were currently expected to perform.

The vice president over the distribution

centers raised the goals to the new

rates and within six months every

distribution center consistently met

the new goals.

With the many challenges in the retail

environment, use of basic project

management approaches to gain

buy-in and consensus are also critical

to project success in all projects,

whether simple or complex. When the

problem scope is straightforward and

the risk of implementation is low,

some basic approaches tend to be used

successfully and quickly. Nevertheless,

a question that often arises is: why

does a simple project using a basic

approach take three months to

complete? The answer is: it does not,

and probably should not, have to take

three months with the appropriate LSS

approach. The project duration is

usually driven by the scope,

complexity, project leaders experience

and leadership, the strength of the LSS

knowledge and the leadership support

on the project.

LSS approaches to simple

problems

Depending on scope, implementation

risk and degree of complexity, some

projects can be completed using an

accelerated improvement approach.

Accelerated improvement is often used

within projects to drive faster

completion of a particular phase or

component (an example: value stream

mapping). However, used properly,

accelerated improvement can be used

effectively to execute projects. The

technique is straightforward, but

requires strong facilitation skills and

DMAIC knowledge, intense preparation

and follow-up management.

Characteristics of an accelerated

improvement approach:

Acoreteamofsixtoeightcross-

functional representatives preparesthe logistics, designs the agendaand determines the participantsand pathway for the event. Anaccelerated improvementI event canwork effectively with as many as 35participants.

Thepathwayconsistsofaseries

of questions designed to drive the

group to quick understanding ofthe problem, leading to solutiongeneration.

Questionsareansweredbysmall

breakout groups, and each groupreports back its best answers tothe overall team. The overall teamthen discusses each answer anddetermines the best next steps.

Typically,solutionsarenot

implemented during an accelerated

improvement event; therefore,developing detailed follow-up actionitems with due dates and identifyingownership is imperative to success.

Theeventisconsideredcomplete

upon full implementation of thefollow-up list and sign-off of thecontrol plan.

The accelerated improvement approach

is very effective when used

appropriately, but it is not always

adequate. More complex projectsrequire statistical analysis in addition

to the basic tools to identify and solve

the root cause or causes of problems.

As project complexity and scope

increases, the accelerated improvement

approach no longer becomes

functional or effective. When project

scope exceeds the accelerated

improvement approach, but is still

fairly narrow, a Kaizen is often the

answer. Kaizen is often calledaccelerated DMAIC or DMAIC in a

week. To be more precise, the event

lasts for a week, but is preceded by one

to two preparation weeks and followed

by a 20-day follow-up period. The

primary differences between

accelerated improvement and Kaizen

are scope, team size (accelerated

improvement can have up to 35

members compared to six to eight in a

Kaizen) and speed of implementation

(accelerated improvement develops a

future plan while a Kaizen takes

immediate action).

Characteristics of a Kaizen process:

Kaizeneventsconsistofthreesteps:

planning, the event and follow-up.

Theone-totwo-weekplanning

phase requires a Kaizen leader notonly to select the team and planthe necessary logistics, but to also

complete the define phase andcollect initial data for the event.

TheKaizeneventitself,whichis

typically five days in duration,completes the measure, analyzeand improve phases of the DMAICmethodology. During the event,additional data is collected andanalyzed, potential solutions arebrainstormed and prioritized, andimplementation of the best solutionsis begun.

AsinallLSSwork,acontrolplan is required. The plan is developedin the event along with a follow-upaction plan for the solutions thatwere not completed during theweek, and appropriate sign-offis obtained.

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Accelerated improvement: Weekly insert process

A large US retailer determined the advertising portion of theweekly insert took 14 work days to create. The defect rate withits current process exceeded 90 percent resulting in extensiverework. Although the retailer never missed an insert, theprocess to meet printer deadlines was costly.

After determining that more than 30 hand-offs were involvedin the process of creating the insert, the Accenture teamdetermined that the accelerated improvement approach wasthe most appropriate to help resolve the issues. Three majorplanning activities were necessary: determining the necessaryteam members, socializing the process and creating the agendafor the event itself. During the 12-hour session, 40 cross-functional team members determined the as-is value streammap, the root causes of the process delays, the future state, andthe steps and ownership needed to implement the improvement

changes.The team implemented multiple solutions with the mostimportant being a distinct timeline for each step in creatingthe insert, based on hard deadlines. The solutions were pilotedin one class of product, and then implemented throughout theorganization over the next few months. Once completed, thecycle time from the first touch by advertising was reduced tofour days, and the defect rate decreased to less than 5 percent.

Kaizen: In-store cost reductionA new store upgrade for high-scale products was implementedin a faster-than-normal pace in order to be first to market. Afterthe project was complete, the team reviewed the new processand determined cost overruns of more than $500,000 per storewere controllable.

After determining the appropriate cross-functional team,the Kaizen team reviewed the construction process and eachcomponent of the new store design using LSS tools and theKaizen focus on action. The construction process was reduced

by two weeks by reducing process inefficiencies and timelinesand improving communication between functions. Using voice-of-customer data from existing store upgrades, the team wasalso able to identify and eliminate wasteful pieces of the designthat were not valued by customers. An example of this wastereduction was the elimination of wood paneling in the storagearea (the initial plan created matching wood paneling for allareas of the display).

Over the course of the week, the team discovered more than 30unnecessary components of the original design. They created a

new construction process and timeline resulting in more than$5 million in annual savings and increased margin from earlierstore upgrade openings. Through this project, Accenture helpeddemonstrate how LSS can help drive high performance.


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LSS approaches to complex

problems

A combination of accelerated

improvement and Kaizen often prove

to be quite effective in solving a

number of problems. So why not use

them to solve every problem? Theanswer is that these methods should

be used when practical, particularly in

stores because of the relative short

time requirements for team members.

However, not every problem fits the

faster methods of accelerated

improvement and Kaizen and instead

requires Green Belt- or Black Belt-level

analysis to solve.

When the scope, complexity and/or

difficulty of obtaining buy-in from keystakeholders increases, accelerated

improvement and Kaizen methods are

not as effective. In most LSS

deployments, the primary vehicle for

problem solving is Green Belt and

Black Belt project approaches. Projects

at these levels use DMAIC in a

methodical, analytical approach to

determine the best possible solution or

solutions. Where accelerated

improvement and Kaizen use some

data to help drive solutions, thenecessary discipline is less than typical

Green Belt or Black Belt projects. The

quick improvements identified in

Kaizens are intended for action and

typically based on directional data or

tribal knowledge, targeting 80

percent confidence. Green Belt and

Black Belt projects require more

detailed analysis and target decisions

with a much more stringent confidence

level of 95 percent.Green Belt and Black Belt projects are

the necessary approach for more

complex and higher risk problems. The

project timelines vary tremendously

due to scope, experience level,

leadership support, data availability

and other reasons, but a typical

expectation is three to six months for

Black Belt projects and two to four

months for Green Belt projects.

The primary differences between GreenBelt and Black Belt project leaders are

the level of training, depth of

knowledge and scope of projects. Black

Belts are most effective when the role

is a full-time process improvement

position in the organization. They

receive four or five weeks of deep

DMAIC theory and application training,

and can lead large, complex, cross-

functional projects with coaching from

more experienced, certified MasterBlack Belts. The Green Belt typically

gets two weeks of training that

provides enough knowledge to

complete focused, single functional

projects with coaching support from

either a Master Black Belt or a Black

Belt.

Retail executives often ask how Green

Belt/Black Belt projects in stores can

be completed when they require

resources for three to eight months tofinish. Gaining traction in stores is

difficult with the traditional approach

to LSS projects due to not only tight

labor constraints, which does not allow

associates time away to work on

long-term improvement efforts, but

also turnover at the store level that

makes a sustainable team difficult to

design. One solution is the project

accelerator (PA), a new model for

DMAIC projects. Project accelerator is

an intensive one-to-two-day event

designed to complete an entire phase

of DMAIC or to complete a complex

task (such as value stream mapping). A

complex LSS project in the store can

be completed in the original or possibly

shorter timeline by a combination of

project accelerator and research/

planning.

Characteristics of the project

accelerator method:

Projectleader,eitherGreenBelt

or Black Belt, plans the event andcreates the agenda.

Thescopeoftheeventisdetermined

based on DMAIC phase, need andteam dynamic after discussion withthe project sponsor.

Duringtheevent,decisionsare

made and a follow-up plan isimplemented.

Theprojectleaderisresponsibleforcompleting the follow-up plan priorto the next event or phase.

ADMAICprojectcouldbecompleted

by a series of project acceleratorevents depending on the scope ofthe project.

As an example of how the project

accelerator method can be used, a

define/measure project accelerator was

conducted in a retailers copy printcenter where some team members

were located in the corporate office

and others were scattered among

multiple stores. In the project

accelerator event, the following were

completed: the team launch, voice of

the customer, communication plan,

value stream mapping (VSM),

perational definitions and data

collection plan.

Also, the project charter, SIPOCdiagram and project timeline were

nearly complete in the project

accelerator (see also sidebar on LSS

Tools Primer). At the end of the

project accelerator, the project leader

was nearly ready for the define and

measure tollgates. Tollgates are formal

reviews between the DMAIC team and

the project sponsor and champion.

Held at the end of each phase,

tollgates have three major functions:1) presentation of the methodology

and learnings from the just-completed

phase; 2) a go/no-go decision from the

sponsor and champion to pass the

tollgate and continue the project to

the next phase; and 3) a full discussion

on next steps in the project.

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Green Belt and Black Belt projects

Reduction of misdelivery errorsA large US retailer incorrectly loaded

more than 20,000 boxes of customer

orders per year, placing boxes onthe wrong delivery trucks. These

errors resulted in increased labor

and transportation costs to redeliver

boxes to customers as well as reduced

customer satisfaction. The retailers

project team addressed this problem,

beginning with a single distribution

center in their network. Using basic

LSS tools such as value stream maps

and value-add analysis to analyze

the issue, the team determined that

repetitive route changes, lack of visualtools and an inefficient label-delivery

process were driving these delivery

errors. The project team identified

and implemented several solutions

including making permanent route

moves, installing large white boards

with planning data and relocating

the label printing. These relatively

simple and low-risk solutions resulted

in $30,000 of cost savings for the

distribution center with the potentialfor $200,000 of benefits upon

replication across the other centers and

a 65 percent reduction in errors.

Improved freight consolidationBy missing opportunities to consolidate

freight transported from their suppliers

to several distribution centers, a large

global retailer incurred higher-than-

necessary freight expenses. A freight

optimization process was executed

twice each business day; however, the

consolidation of additional supplier

shipments was estimated to potentially

reduce annual inbound freight costs

by more than $750,000. The project

team used histograms and process

complexity identification tools to

uncover three main root causes

that resulted in inefficient freight

optimization: 1) suppliers were required

to request routing instructions atleast 48 hours in advance of their ship

date; 2) suppliers were given instant

routing responses unnecessarily; and 3)

current allocation of resources did not

provide freight optimization process

support. These causes reduced the time

available and shipment visibility for the

retailer to analyze opportunities and

consolidate freight.

Enlistingtheexpertiseofcross-

functional associates, the team

generated a large list of solutions and

identified two primary solutions for

implementation that were chosen using

a cause-and-effect diagram (also know

as a fishbone diagram). By removing

suppliers ability for instant routing

and reallocating internal resources to

freight optimization, the team was able

to eliminate four critical controllable

defects and generate $752,000 in

annualized savings.

Reduction of damage inventoryThe damaged inventory levels in a

leading global retailers US stores

averaged around $11.5 million, tying

up costly working capital and slowing

down replenishment of necessaryproduct inventory in stores. In the

early analysis of the data, the Black

Belt discovered that 30 percent of

the return reason codes entered were

incorrect. This discovery highlighted

a problem much greater than initially

expected: the actual damaged

inventory was 23 percent higher than

the recorded financial reports, the

cycle time to process and clear some

damaged inventory exceeded a year,and significant complexity was added

to the store inventory positions.

Analyzing the drivers of inventory using

deep LSS tools such as Lean value

stream mapping, process balancing

and advanced ANOVA statistical

analysis, the team uncovered several

critical root causes: 1) multiple process

failure points were uncovered before

the damaged product inventory was

placed in the cage; 2) cashiers werenot trained on returns and exchanges;

and 3) an audit process did not exist

for damaged product reports. The team

then analyzed and tested data that

actually proved conclusions directly

opposite of supposed widely accepted

truths.

The Black Belt leveraged a cross-

functional team of corporate and store

inventory associates to redistribute

workload and accountability between

the store inventory and service desk

associates to increase inventory

accuracy. Also, the complexity of the

damaged inventory processing was

reduced by balancing process loads

balancing, allowing the inventory

associates to control damage-on-

hand inventory and process damaged

inventory a minimum of three times

per week. This change enabled the

inventory process to be executed more

often and reduced the cycle time of

processing damaged inventory. As a

result, the running average of damaged

inventory was reduced by 26 percent

or $3.5 million, resulting in capital

improvement of $409,000 and a turn

improvement of 2.25bp. Additionally,

the cycle time of items in the damagedinventory was reduced by 37 percent to

less than 10 days.

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applies. Determining which option or

set of options to use is the art of the

process.Eachcompanysproject

selection process should include a

determination of the best methodology

and approach to successful completion.

LSS and its ability to match the needs

of the business is a strong solution foroperational transformation and

cultural change.

Third article in series

In the final article in this series of

achieving high performance through

Lean Six Sigma in retail, we discuss the

importance of leadership and explore

the necessary key leadership roles in

successful LSS deployments.

To learn more, please go towww.accenture.com/

processandinnovationperformance.

Progressing to high

performance through

operational transformation

Understanding the variety of

approaches for different business

issues and how they can be applied

increases the effectiveness of theproject solutions and program growth,

ultimately contributing to achieving

high performance. LSS can be and is

successful in the retail industry

because its robust and flexible nature

fits into the fast-paced, variable

competitive environment and

organizational cultures. Moreover, in

retail, flexibility and diversity are

requirements for any sustainable

cultural change agent.

Whether a project is a complex,

cross-functional enterprisewide effort

or a local improvement

implementation, the LSS toolkit

9

Criteria

Approach Description Complexity Scope

Implementation

Risk Typical Timeframe

Project

Accelerator

(PA)

short, intensive event

designed to complete an

entire phase of DMAIC or to

complete a complex task

Extremelylow Small Low 1-2 days

Accelerated

Improvement

(AI)

Short burst of activity

concerning a specific issue

to determine an agreed upon

set of actions

Low Small Low 1-2 days with

variable follow-up

Kaizen Intense event utilizingDMAIC methodology in

which root causes and

solutions of smaller scoped

issues are determined, and

solutions are implemented

immediately

Low to moderate Small tomedium

Low to moderate 4-5 days with 15-30days follow-up

Green Belt

(GB)

Focused projects within a

functional area utilizing

DMAIC methodology to

solve smaller problems

Low to moderate Medium Moderate 2-4 months

Black Belt(BB)

Project utilizing DMAICmethodology to solve root

causes to major issues and

establish permanent controls

High Large Moderate to high 3-6 months


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10

Lean Six Sigma Tools Primer

Basic tools

Affinity Diagram: An approach for

organizing facts, opinions and issues

into natural groups as an aid to

diagnosing a complex problem.

Cause-and-Effect Diagram (also

known as a Fishbone or Ishikawa

Diagram) and 5 Whys: Strong

brainstorming approach to determine

the relationship between a problem

symptom and its main causes and sub-

causes.

Force-field Analysis: An approach to

assist in examining the factors that

will aid (called driving forces) or hinder(called restraining forces) in reaching

an objective. Also, aids in helping

understand the forces that keep things

the way they are.

Histogram: A basic graph that displays

relative frequency or occurrence

of data values and enables easier

observation of patterns in a set of

data as compared to a simple table of

numbers.

Nominal Group Technique (NGT): Astructured approach that supplements

brainstorming, used to generate

additional ideas, survey the opinions

of a small group and prioritize

brainstormed ideas, issues or solutions.

Pareto Chart: A type of bar chart that

helps quantify and prioritize problems

so effort is focused on the vital few

causes as opposed to the trivial many.

The Pareto principle suggests that 80

percent of the effect of the problem isattributed to 20 percent of the causes.

Process Map:Visual representation of

the steps of work path used to produce

a product or perform a function to

better understand processes, comprises

a stream of activities that transforms

defined inputs into a set of outputs.

SIPOC (which stands for suppliers,

inputs, process, output and

customers): A high-level process

chart that primarily helps identify the

process output(s) and the customers of

the output.

Stakeholder Analysis: A visual tool

used to help identify key stakeholders

level of support in order to develop an

action plan and enlist support for a

project or change.Value Stream Mapping (VSM):

Process mapping technique that helps

identify and understand the flow of

material and information as a product

or service makes its way through the

process work path.

More advanced tools

ANOVA: Statistical models to estimate

the variance components associated

with total amount of observed

variation, assists in identifying the

critical causes of a problem.

Boxplot (also called box-and-whisker

diagrams): A graph used to visualize

both the median and the range of a

process and allow for easy graphical

comparison of multiple sets of data.

Control Chart: A graphical approach

for monitoring changes within a

process, distinguishes variation that

is inherent in the process (commoncause) from variation that indicates a

change to the process (special cause).

Design of Experiment (DOE): A

structured, organized method for

planning, conducting and interpreting

controlled tests to determine the

relationship between factors affecting

the outputs of a process.

Process Capability: A statistical

measure of the inherent process

variability for a given characteristic

and refers to the ability of a process

to produce a defect-free product or

service.

Regression Analysis: A statistical

method to describe and quantify the

relationship between two or more

variables.

Trend Analysis: An approach to chart

and analyze data to identify underlying

long-term trends (e.g., failure patterns).


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About AccentureAccenture is a global management

consulting, technology services

and outsourcing company.

Combining unparalleled experience,

comprehensive capabilities across all

industries and business functions,

and extensive research on the worldsmost successful companies, Accenture

collaborates with clients to help them

become high-performance businesses

and governments. With more than

186,000 people in 49 countries, the

company generated net revenues of

US$23.39 billion for the fiscal year

ended Aug. 31, 2008. Its home page

is www.accenture.com.

Contact us

To learn more, see our thought

leadership on www.accenture.com/

processandinnovationperformance

or call one of our senior directors:

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+1 804 683 8914 or

[email protected]

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Accenture Process and Innovation Performance Solving Retail Problems Using Lean Six Sigma

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