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1 Even slow progress is better than none at all Daniel S. Carroll version 1.0 April 13, 2012 99.73% 99.73% 95.46% 95.46% 68.26% 68.26% + 3σ + 2σ + 1σ - 3σ - 2σ - 1σ Average
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The Process of Process Improvement

Dec 05, 2014

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Daniel Carroll

A presentation about process improvement covering Six Sigma concepts, root cause analysis, improvement methodology, and 3 case study/projects where I applied improvement concepts such as process identification, flowcharting, and surveying/customer observations (analyzing document workflow in a insurance processing center, bettering records & information management practices for a law firm, and applying voice of the customer (VOC) to strengthen our sales cycle).

Please note this was an internal presentation to my colleagues and was not meant to education them Six Sigma. I do not work in the manufacturing/R&D/sciences sectors where many of these key concepts are derived. The specific examples are meant to reflect our business support services and improve our own culture.
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Page 1: The Process of Process Improvement

1

Even slow progress is better than none at all

Daniel S. Carroll version 1.0

April 13, 2012

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 2: The Process of Process Improvement

2

Is a data driven quality improvement methodology structured to reduce product or

service failures rates to near perfection. ∑

= 99.73% = Six Sigmas outlining normal distribution = for 1M opportunities, there are 3.4

mistakes

In statistics, a bell-shaped curve represents the

distribution of values, frequencies, or probabilities of

a set of data. The middle is the “norm”

(normal distribution / “norm” = a good thing!)

2

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 3: The Process of Process Improvement

3

Methodology for improvement

Management philosophy

Strategy for running a business

Creates a common language throughout an organization (small, medium or large)

Method to transform culture (paradigm shift)

3

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 4: The Process of Process Improvement

Like most “quality management” programs, it started in manufacturing / industrial

Has been adopted in practically all verticals

Major modern day focuses: Financial Services, Healthcare, Information Technology

Baseline: mistakes are costly

Effectiveness – the degree to which you meet and/or exceed customer needs or

requirements

Efficiency – the amount of resources consumed in being effective

4

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 5: The Process of Process Improvement

5

What it is What it is NOT

Scientific in nature

Hypotenuse applied to business (think HS

science class)

Discovery, asking questions, challenging the

methods (investigative practice)

Team participation

Listening to the customer (VOC – voice of

the customer)

Leaving no stone unturned, enterprise wide

High level, top-down approach

Anecdotal

Deviation in delivery (e.g. service delivery)

Bandaid fix approach / “one size fits all”

Independent assumptions

Lack of understanding of culture, evolution

A sliver bullet solution

Subjected to just one entity of an

organization

5

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 6: The Process of Process Improvement

6

What it is What it is NOT

De facto standard

Just because you’re not sick doesn’t mean

you can’t get better

Use of tools

Knowledge workers

Method acting

A Team*

Quick, Complete Project Adoption

Status quo

If it ain’t broke don’t fix it

Lacking a valuable apparatus

For everyone

Single act show

Solely an individual process

*Six Sigma defines a team as “A group of motivated people with complementary skills and knowledge who are

committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually

accountable.”

6

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 7: The Process of Process Improvement

7

SS defines “customer” as…

A customer is a recipient of a product or services – internal or external

SS’ six recommendations to identify VOC…

1. Interviews* (formal, direct, small)

2. Focus Groups (informal, direct, medium)

3. Market Research (informal, indirect, large)

4. Surveys (formal, direct, large)

5. Customer Observations* (formal, direct, small)

6. Complaints* (formal, direct, small)

* Ideal opportunities to seek “pain points”

7

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

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Average

Page 8: The Process of Process Improvement

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Using VOC tact, we become more valuable in the marketplace

Professional, Consultative

Knowledge Experts, Thought Leaders

Less commoditized!

8

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

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Average

Page 9: The Process of Process Improvement

9

Using VOC tact, we analyze client situations

Customer Needs vs. Requirements

Needs establish the relationship between the organization and the customer

Requirements are the characteristics that determine whether or not the customer is

happy

Q. what makes a client unhappy?

9

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 10: The Process of Process Improvement

A. Variation – deviation in service delivery, or a large step away from the “norm” (average)

Caused by factors that can be in your control (Machines, Materials, Methods, Measurement,

People) or the one not in control (Mother Nature)

Variation

Problem identification

Norming

Get control

Average

Improve using VOC

10

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

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- 2σ

- 1σ

Average

Page 11: The Process of Process Improvement

11

Define

Measure

Analyze

Improve

Control

11

99.73%

99.73%

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Page 12: The Process of Process Improvement

12

Define phase

Identifying there’s a problem

Develop a “problem statement”

Identifying the solution (the target)

Work with the knowledge experts

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

12

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 13: The Process of Process Improvement

13

Problem statement (pain point): reduce the amount of indexing performed by a 3rd party in

their mail scanning workflow

Take a large problem and make it more granular

1. Process Map

2. Use VOC

Case Study 1

13

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 14: The Process of Process Improvement

14

Analyze phase

potential area of process improvement

Case Study 1

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

14

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 15: The Process of Process Improvement

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Microproblem statement (pain point): how do we control file tracking on-and-off site

Take a large problem and make it more granular

1. Began with VOC

2. Enabled controls to ensure accountability and upkeep of related information

Case Study 2

15

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 16: The Process of Process Improvement

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Combined Improve and Control

SOPs

Continuity

Consistency

Case Study 2

16

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

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Page 17: The Process of Process Improvement

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Problem statement (hypotenuse): what is the most important factor that yields a new sale?

Key considerations

1. Use VOC

2. Identify their pain points of dealing with similar providers

3. Gather feedback from decision makers on their needs and requirements

Case Study 3

17

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 18: The Process of Process Improvement

18

EXAMPLE ONLY

Created 3 top-level categories to classify the type of question asked by a prospect: (1)

about the company, (2) about our products, (3) about our services

Timeframe Fall 2011 – Spring 2012

Prospects 5

Total Questions collected 47

Categories 3

Questions about the Company 28 (60%)

Questions about its Product 5 (11%)

Questions about its Service 14 (30%) Surprisingly, decision makers seemed

to be more concerned with their

potential business partner as a whole,

verse impressing them with superior

product and/or service

Case Study 3

Page 19: The Process of Process Improvement

Areas:

Zero variation: tighter control with standard, universal procedures

Team participation

Listening to the customer (VOC – voice of the customer)

Leaving no stone unturned, enterprise wide

Quick, Complete Project Adoption

High level, top-down approach

19

19

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 20: The Process of Process Improvement

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Controls aren’t just tools used to govern and regulate

Develop consistencies behind routine, “course setting” actions

Standard procedures offer ways to control, benchmark, and study outcomes

You can’t improve upon something that varies each and every time it’s preformed

The analysis of result-driven outcomes cannot be compared against varied

performances

20

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 21: The Process of Process Improvement

Areas:

Zero variation: tighter control with standard, universal procedures

Team participation

Listening to the customer (VOC – voice of the customer)

Leaving no stone unturned, enterprise wide

Quick, Complete Project Adoption

High level, top-down approach

21 21

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 22: The Process of Process Improvement

22

Now, more than ever, organizations must be dynamic to face tomorrow’s challenges

Expertise isn’t the only thing that should lend itself sideways, backwards and forwards

With raised expectations of select knowledge workers, there should be more contributions of

other individuals as well

Eliminate “silos” while broadening partial and central ownership

22

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 23: The Process of Process Improvement

Areas:

Zero variation: tighter control with standard, universal procedures

Team participation

Listening to the customer (VOC – voice of the customer)

Leaving no stone unturned, enterprise wide

Quick, Complete Project Adoption

High level, top-down approach

23 23

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 24: The Process of Process Improvement

24

Organizations rely on business intelligence from all facets within

Cross-account analytics for benchmarking (prospecting)

Multilevel TQM Reporting analysis (current clients)

Marketing Analytics (external)

We have data to become industry thought leaders and shape customer wants

24

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 25: The Process of Process Improvement

Areas:

Zero variation: tighter control with standard, universal procedures

Team participation

Listening to the customer (VOC – voice of the customer)

Leaving no stone unturned, enterprise wide

Quick, Complete Project Adoption

High level, top-down approach

25 25

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 26: The Process of Process Improvement

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A Lean Six Sigma organization has everyone’s participation

Everyone identifies an opportunity to leverage Lean or Continuous Improvement

Craft a problem statement (a “pet project”)

Identify key team resources, execute

Create a heightened sense of cause effect execute realize improve

26

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 27: The Process of Process Improvement

Areas:

Zero variation: tighter control with standard, universal procedures

Team participation

Listening to the customer (VOC – voice of the customer)

Leaving no stone unturned, enterprise wide

Quick, Complete Project Adoption

High level, top-down approach

27 27

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 28: The Process of Process Improvement

28

A Lean organization is one that is agile, reliant on firm leadership and decision making

Build solid business cases using business intelligence

Carve out time to listen, understand and react

Do not let initiatives fall by the wayside

Project/program adoption and group participation should never take longer than

development which usual involves high level information gather, preparation, etc.

28

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 29: The Process of Process Improvement

Areas:

Zero variation: tighter control with standard, universal procedures

Team participation

Listening to the customer (VOC – voice of the customer)

Leaving no stone unturned, enterprise wide

Quick, Complete Project Adoption

High level, top-down approach

29 29

99.73%

99.73%

95.46%

95.46%

68.26%

68.26%

+ 3σ

+ 2σ

+ 1σ

- 3σ

- 2σ

- 1σ

Average

Page 30: The Process of Process Improvement

30

Pres./

CEO

VPs EVPs

Divisions Departments Internal

Customers

External

Departments

sacred cows

traditional thinking

unchanged mindset

satisfactory silo adoption

short-term gains

Committees