PROBLEM SOLVING & SIX SIGMA Francy Chesser MGT 650 Summer 2014
Jan 12, 2015
PROBLEM SOLVING & SIX SIGMAFrancy Chesser
MGT 650
Summer 2014
GBS LSS YELLOW BELT TRANSACTIONAL
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What is Six Sigma?
Six Sigma+Lean is the consistent further development and systematic interlinking of proven tools and methods
Six Sigma is strongly customer oriented methodology, supporting companies to be
customer centricRaising quality andcustomer satisfaction
Project benefit forthe company in $
Six Sigma+Lean means "six standard deviations". The Six Sigma+Lean vision means that the standard deviation of a normal distribution fits +/- six times between the specification limits defined by the customer (upper specification limit = USL and lower specification limit = LSL). The located value corresponds to a quality level of 99.9999998 %. Practical experience shows that processes fluctuate over time by at least +/-1.5 Sigma, this means that in the end a quality level of 99.9997 % is achieved and this corresponds to an error rate of 3.4 defects per million opportunities
Measurement Dimension
Customer orientation
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Methodology Dimension
Most of the companies use Six Sigma to improve existing processes with
DMAIC tool set
After successful use of DMAIC in improvement of Six Sigma, a tool
set for development of new processes was designed called DFSS
Last Dimension of Six Sigma maintains achieved results by DMAIC
or new set up process/product by DMADV Improve processesDMAIC
Develop processesDFSS / DMADV
Process management takesresponsibility for the processes
Tools Results
Define
Phase
Measure
Analyze
Improve
Control
• Project Charter• High level process
map• Collection of
customer requirements
Cause
List of root
causes
• Definition of the size of the problem (SOW)
• Definition of the process to be improved
• Definition of the customer & his requirements
• Project potential in numbers (€)• Fact & data based definition of the
current situation
• Search for root causes• Data driven analysis and
verification
• Root cause related creation of solutions
• Systematic value based selection• Stringent improvement planning
• Documentation of final solutions• Control of results after 12 months • Detailed reaction plan measures
Start
Stop
List of possible
solutions
Implementation plan
Technical call
process
4321
240 -
190 -
140 -
Process analysisData analysisFocus
Problem
Scope
Goal
Team
• Output measurement
• Data collection• Process capability
• Process Analysis• Data Analysis• Root Cause Analysis
• Solution generation• Solution selection• Pilot &
Implementation
• Process Documentation
• Monitoring Charts• Reaction Planning• Process Perform.
Review
t
Call duration
t
Call duration (# Calls)
PWT time
t
PWT time
t
D M A I C
GBS LSS YELLOW BELT TRANSACTIONAL
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The Main Questions
Does it work ?
Why we have the
problem ?
How big the problem is ?
What is the problem ?
How to solve the problem ?
GBS LSS YELLOW BELT TRANSACTIONAL
Avoid or Redefine projects that fall into
any of these categories: Fuzzy objectives
No tie to financials
No team/resource to drive the project
Too broad in scope
No connection to strategic or annual plans
Solution already defined and agreed (go for just do it project)
Too many objectives
Without measurable $ benefits6
D M A I C
GBS LSS YELLOW BELT TRANSACTIONAL
Look for … What is on the current & coming Agenda of the department
Problems needing solutions to meet annual operating plan
Major problems with financial impact (customer or environmental crises)
Problems re-appearing on the agenda several times (“fire fighting is not enough”)
High volume products (small improvements can have huge impact)
Products and processes with major backlogs
Overtime, warranty, and other sources of waste
Rework and scrapping activities
Large budget items
Project has to have $ BENEFIT !!! ( minimal requirement is $5k / year)
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D M A I C
WHAT IS PROCESS ?
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D M A I CGBS LSS Yellow BeltTransactional
“ The application of knowledge, skills, tools, techniques and systems to define, visualize, measure, repeat, control and improve process with goal to meet customer requirements profitably “
INPUT PROCES OUTPUT
WHAT IS PROCESS ?
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D M A I CGBS LSS Yellow Belt Transactional
VOICE OF CUSTOMER/BUSINESS - TOOL I
Voice of the customer (VOC) Key issue Critical to Quality (CTQ)
Voice of the business (VOB) Key issue Critical to Quality (CTB)
D M A I CGBS LSS Yellow Belt Transactional
I do not want wait for taxi for ages
I want to be taken to the correct location
I want to pay correct bill
TIME
LOCATION
QUALITY
Each customer MUST BE taken to the right location
Each Taxi MUST pic up customer in 10 min
Each bill MUST BE correct
We want decrease the cost…
Cost / Expense
Reduce cost for…
Output measurement
Output measurement
Define output measurements
List of CTQ/CTB
Define how strong the measurements evaluate CTQ/CTB. Use ratings: 0 none, 1 weak, 3 medium, 9 strong
Output Measurement Matrix – Tool 2 How can we measure customer requirements?
D M A I CGBS LSS Yellow Belt Transactional
# of cases no pick up in 10
# of cases customer taken on wrong location
# of incorrect bill
9
9
9
1 0
0 0
Each Taxi MUST pic up customer in 10 min
Each customer MUST BE taken to the right location
Each bill MUST BE correct 0 0
DATA TYPES
D M A I CGBS LSS Yellow Belt Transactional
DATA TYPES
Discrete (Count) Data
Continuous Data
Can be categorized in a classification and is based on counts.
Can be measured on a continuum, it has decimal subdivisions thatare meaningful
Number of defectsNumber of defective unitsNumber of customer returnsYes / NO Black / White
Time, Pressure, Conveyor Speed, Material feed rateMoney
DATA PARAMETERS
D M A I CGBS LSS Yellow Belt Transactional
Basic statistical categories
Location parameters
Distribution parameters
Defines where most of our data points are located
Defines how big are the differences between data points
MeanMedianModeQuartileMin/max
VarianceStandard deviationRange
SWIMLANE (AS IS – TO BE)HOW LOOKS OUR PROCESS?
Processstart/end Process step
application
Use serviceRequest service
Technical feasibility
Enter order
Verify order
Enter order
Cancell orderapplication
Call Centeroperator
Sales agent
IT specialist
Function
Customer
Technical expert Instal service
Communicate cancellation
Communicate cancellation
Comment
yes
no
Recommended symbols: Processstart/end Process step application
Function Comment Swimlane template
D M A I CGBS LSS Yellow Belt Transactional
DATA COLLECTION PLANWHAT MUST BE DONE TO HAVE GOOD DATA AND IN TIME?
Belt: <
nam
e>
Pro
ject: <
nam
e>
What to measure? How to measure? Who does it?When
?
Measurement name
Operational definition
Sample Size
Input/output/ process
Collection description
Data tags needed to stratify the data
Responsible for collection
Date
D M A I CGBS LSS Yellow Belt Transactional
D M A I CGBS LSS Yellow Belt TransactionalData Stratification
WHY
Break down data to recognize new structures with which we can limit and explain a problem, e.g. when a problem occurs at different times, at different places, or under different conditions.
Stratification options
WHO Sales agent, operator,
WHENQuarter of the year, month, time of the day,
WHERE Country, region, town
WHATCall reason, failure reason, purchase reason
HOW Contact type, sales channel, treatment type
CAUSE & EFFECT DIAGRAMWHAT IS CAUSING OUR PROBLEMS?Measurement descriptionMan
Methods
Measurement
Machine
Material
Mather nature
Problem statement
D M A I C