AnalyzeAnalyze ImproveImproveDefineDefine MeasureMeasure ControlControl
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<Project Title (State From ... To)>
< Last Name, First Name >
Wave No: <xx>
Review Date: <xx/xx/xxxx>
AnalyzeAnalyze ImproveImproveDefineDefine MeasureMeasure ControlControl
LEANSIX SIGMA
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ImproveImprove
Define Phase Road Map
• Project Charter• Voice of the Customer and Kano Analysis
• SIPOC Map• Project Valuation/ROIC Analysis Tools• RACI and Quad Charts• Stakeholder Analysis• Communication Plan• Effective Meeting Tools• Inquiry and Advocacy Skills• SWOT Analysis• Time Lines, Milestones, and Gantt Charting
• Pareto Analysis
• Team election and scoping• Review Project Charter • Validate High-Level Value Stream Map and Scope
• Validate Voice of the Customer and Voice of the Business
• Validate Problem Statement and Goals
• Validate Financial Benefits• Create Communication Plan• Select and Launch Team• Develop Project Schedule• Complete Define Gate
ToolsActivities
ControlControlMeasureMeasureDefineDefine AnalyzeAnalyze
DefineDefine
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Project Description Describe the project in non-technical terms
?
Define the project’s scope and boundaries (locations, products, operations, etc) Is the scope reasonable? Have key constraints and key assumptions been
identified?
Where are you feeling the pain?
?
DefineDefine
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Responsibility Grid Decision 1 = should be the only one to make this decision 2 = should have veto power over this decision3 = should be one of those who votes
Gre
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Bla
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Mas
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Bla
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Pro
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Decision 1 = should be the only one to make this decision 2 = should have veto power over this decision3 = should be one of those who votes
Charter
Define
Measure
Analyze
Improve
Control
Decision 1 = should be the only one to make this decision 2 = should have veto power over this decision3 = should be one of those who votes
Execution A = has to executeB = has to assist in execution (provide information,…)C = not involved in execution
Responsibility P = Perform A = Approve R = Review
Responsibility GridClarifying roles is a critical preliminary step for setting
Improvement teams up for success!DefineDefine
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Team Effectiveness Ground Rules
Team Roles
Team Meeting Frequency
Tools used by Team
Team Issues (Schedule, Vacations, Availability, Communication)
Other
DefineDefine
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Strategy - Thought MapAre the
team members
identified?
Problem
Has the CTQ’s been
defined?
Are the CTQ’s
measurable?
Is Y=F(X) establishe
d?
Do we have a measurement
system?
Are my champions
and Controller briefed? Critical
variables identified?
Can we control X’s?
Can we have
dashboards on X’s?
DefineDefine
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Product / Service Customers Potential Segments
Customer Segmentation Matrix
Enter Key Slide Take Away (Key Point) Here
DefineDefineCustomer Segmentation Matrix
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Enter Key Slide Take Away (Key Point) Here
DefineDefineKano Analysis ChartRanking
of Customer Needs
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VOC PlanProcess Name: Project Name:
Created By: Date Initiated:
Location: Current Revision Date:
Additional Information:
Customers and Segments
• List the various customers (external) and other key stakeholders (business partners, regulatory agencies, etc.) of your process.
Are there different types of stakeholders who may have very different needs? If so, list these as different segments.
• ?• ?• ?
What You Want to Know
Develop a list of specifically what you want to know about your customers and other stakeholders needs.
Use the following list as a guide: What are the most important process outputs
(products/services)? What is the performance level of the important outputs? What are the problems with the outputs? What is their impact? What do you like about _______? What can be improved about _______? What can be done to make your job easier? What specific recommendations would you make to us? How do we compare relative to our competitors? How easy is it to do business with us?
• ?• ?• ?• ?• ?• ?• ?• ?• ?• ?• ?• ?
DefineDefine
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VOC Plan (Cont.)Information Sources (Check the data sources that you think will be most useful)
Reactive Data Complaints Problem or service hot lines Technical support calls Customer service calls Claims, credits Sales reporting Product return information Warranty claims Web page activity Other:
Proactive Data Interviews Focus groups Surveys Comment cards Sales visits/calls Direct observation Market research/monitoring Benchmarking Other:
VOC Collection Plan Summary
• Summarize your plans to gather and use both reactive and proactive sources of VOC information.
Indicate how much data you will get, how you will get it, and when. Include, for instance: What specific sources of data you plan on exploring The number of interviews or surveys you plan to use Which customers you will contact The amount of data you will collect - When you will start and end the
data collection How you plan on analyzing the gathered information Etc.
• ?• ?• ?• ?• ?• ?• ?• ?• ?
DefineDefine
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Voice of the Customer (VOC)
Customer
Voice of the
Customer
Key Customer Issue(s)
CriticalCustomer
Requirement
Who is the Customer?
What does the customer want from
us?
We need to identify the issue(s) that prevent us from
satisfying our customers.
We should summarize key issues and translate them into specific and
measurable requirements
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DefineDefine
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Voice of the Customer (VOC)
Customer “Voice of the Customer” Verbatim
Categories: Delighters / One-
Dimensional / Must-Be’s
Critical To Satisfaction
<Customer> <“…..”> <….> <Design / Service / Process>
<Customer> <“…..”> <….> <Design / Service / Process>
<Customer> <“…..”> <….> <Design / Service / Process>
Who are the customer focus groups?
Questions
<Right Click, and select Add Text>
What methods were used to capture customer needs?
<Right Click, and select Add Text>
What CTQ is the primary focus for this project?
<Right Click, and select Add Text>
Enter Key Slide Take Away (Key Point) Here
DefineDefine
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Critical-to-Quality (CTQ) Tree
Profitability
Effectiveness of return
Share
Supply chain responsiveness
Supply chain Delivery reliability
Gross Margin
Operating Income
Net Income
Performance attribute (Big Y)
Level 1
Supplier on time
P.O on time
Warehouse on time & in full shipment
3PL on time
Return on assets
Revenue
COGS
Sales General & Admin (SG&A)
Corporate Taxes
Level 2 (CTQ:Y)
Delivery Performance
Fill rate
Perfect order fulfillment
<Right Click, Add Text><Right Click, Add Text>Process Requirement
Defect <Right Click, Add Text><Right Click, Add Text>
<Right Click, Add Text><Right Click, Add Text>Unit of Measure
Data Type <Right Click, Add Text><Right Click, Add Text>
DefineDefine
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VOC Prioritized Comments
VO
C P
rior
itiza
tion
Ratin
g
Pro
cess
Req
uire
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ts
Fill
Out
For
ms
Cre
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val C
heck
Und
erw
ritin
g
Lock
Loa
n
Clo
se
Fund
ing
Loan
Tota
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Wha
t Im
porta
nce"
1 2 3 4 5Loan Approval Cycle Time 5 <= 14 days 9 9 9 0 0 0 1351st Call Resolution 2 >= 75% 1 0 9 0 0 9 38Approval to Loan Close Cycle Time 5 <= 30 days 0 0 1 3 9 0 65Fee (Good Faith Estimate) Accuracy 3 >= 85% 9 3 1 0 0 1 42Invoice Completeness 4 100% 9 9 9 0 0 1 112Average Speed To Answer 1 <= 15 sec 1 0 0 0 0 0 1Unexpected Fees 2 <= $5 9 1 1 9 1 1 44Totals "How Importance" 129 92 109 33 47 27
Importance Rating LegendStrong Impact 9Moderate Impact 3Weak Impact 1"Blank" for no Impact
Competitor Comparison:
Washington Mutual
Wells Fargo
Countrywide
Bank of America
Correlation Matrix
Strong Positive
Positive
Negative
Strong Negative
"Blank" for No Correlation
###
Importance Ratings
Strong Impact 9
Moderate Impact 3
Weak Impact 1
Importance Ratings
Strong Impact 9
Moderate Impact 3
Weak Impact 1
Quality Functional Deployment (QFD)
Enter Key Slide Take Away (Key Point) Here
DefineDefine
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Project Definition - Includes/Excludes
What:
Where:
When:
Who:
Time:
Includes ExcludesProject Scope
DefineDefine
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VOC - SIPOCS I P O C
Suppliers Input Process Output CustomersProviders of the
required resourcesResources required
by the process(Numerical
requirements on inputs)Requirements
Top level description of the activity Deliverables from the process
(Numerical requirements on inputs)
Requirements
Stakeholders
• ?• ?• ?
• ?• ?• ?
• ?• ?• ?
• ?• ?• ?
• ?• ?• ?
• ?• ?• ?
DefineDefine
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Start
Stop
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Schedule Review high-level schedule milestones here
Phase Completions Gate Reviews Executive Briefing
Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08 Apr 08
Phase 2: MeasurePhase 2: MeasurePhase 2: MeasurePhase 2: Measure
Phase 3: AnalyzePhase 3: AnalyzePhase 3: AnalyzePhase 3: Analyze
Phase 4: ImprovePhase 4: ImprovePhase 4: ImprovePhase 4: Improve
Phase 1: DefinePhase 1: DefinePhase 1: DefinePhase 1: Define
Phase 5: ControlPhase 5: ControlPhase 5: ControlPhase 5: Control
Tollgate Scheduled Revised Complete
Define: XX/XX/XX - XX/XX/XX
Measure: XX/XX/XX XX/XX/XX XX/XX/XX
Analyze: XX/XX/XX XX/XX/XX XX/XX/XX
Improve: XX/XX/XX XX/XX/XX XX/XX/XX
Control: XX/XX/XX XX/XX/XX XX/XX/XX
Tollgate Review ScheduleTollgate Review Schedule
DefineDefine
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Team CharterResource Plan Project Information Tollgate Review Dates
Project Lead
Project Sponsor
Project Champion
Coach
Team Members
Define
Measure
Analyze
Improve
Control
Rolling Action Item List (RAIL)Meeting Date
Meeting FrequencyProject Status
Green (Done) Red (off-track) Yellow (WIP)
Date Signoff
DefineDefine
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Project CharterBusiness Case
<Explain why did you pick up this project?>
Problem Statement
<Explain the pain felt by the customer>
SMART Goals
CTQ Baseline Actual World Benchmark
Customer Satisfaction Benefits
<Explain the benefits for the customer>
Project Scope
• Process Start: <…>• Process End: <…>• In Scope: <…>• Out of Scope: <…..>• Constraints: <…>
Key Learning's• Impacted Process: <…>• Cultural Change:<…>• Organizational Change: <…>
Recommendations• Effort Replication Areas: <…>
DefineDefine
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Critical Path Analysis / Pert / Gantt Chart
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DefineDefine
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Business Impact State financial impact of project Separate “hard or Type 1” from “soft Type 2 or 3” dollars State financial impact of future project leverage opportunities
DefineDefine
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Annual Estimate Replicated Estimate
Revenue Enhancement
• Type 1: ?• Type 2: ?• Type 3: ?
• Type 1: ?• Type 2: ?• Type 3: ?
Expenses Reduction
• Type 1: ?• Type 2: ?• Type 3: ?
• Type 1: ?• Type 2: ?• Type 3: ?
Loss Reduction
• Type 1: ?• Type 2: ?• Type 3: ?
• Type 1: ?• Type 2: ?• Type 3: ?
Cost Avoidance
• Type 1: ?• Type 2: ?• Type 3: ?
• Type 1: ?• Type 2: ?• Type 3: ?
Total Savings • Type 1: ?• Type 2: ?• Type 3: ?
• Type 1: ?• Type 2: ?• Type 3: ?
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Business Impact Details Type 1: Describe the chain of causality that shows how you determined the Type 1 savings. (tell
the story with cause–effect relationships, on how the proposed change should create the desired financial result (savings) in your project )
Show the financial calculation savings and assumptions used. Assumption #1 (i.e. source of data, clear Operational Definitions?) Assumption #2 (i.e. hourly rate + incremental benefit cost + travel)
Type 2: Describe the chain of causality that shows how you determined the Type 2 savings. (tell the story with cause–effect relationships, on how the proposed change should create the desired financial result (savings) in your project )
Show the financial calculation savings and assumptions used. Assumption #1 (i.e. Labor rate used, period of time, etc…) Assumption #2 (i.e. contractor hrs or FTE, source of data, etc…)
Describe the Type 3 Business Impact(s) areas and how these were measured Assumption #1 (i.e. project is driven by the Business strategy?) Assumption #2 (i.e. Customer service rating, employee moral, etc…)
Other Questions Stakeholders agree on the project’s impact and how it will be measured in financial terms? What steps were taken to ensure the integrity & accuracy of the data? Has the project tracking worksheet been updated?
DefineDefine
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SWOT AnalysisS
hor
t T
erm
Sh
ort
Ter
mL
ong
Ter
mL
ong
Ter
m
StrengthStrength
WeaknessWeakness
OpportunityOpportunity
ThreatThreat
DefineDefine
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Multi-Generational Project PlanGen1 Gen2 Gen3
Target Date
MGPP
Metrics
Dependencies
Vision
Key Functionality
Technology Requirements
Target Customers
DefineDefine
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Process Bottleneck Identification & Workload Balancing
--
<Right Click, and select Add Text>
--
<Right Click, and select Add Text>
<Right Click, and select Add Text>
---
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Takt Rate Analysis compares the task time of each process (or process step) to: Each other to determine the time trap Customer demand to determine if the time trap is the constraint
Net Process Time AvailableNumber of Units to Process
Takt Time =
DefineDefine
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Influence Strategy
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DefineDefine
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Communication Plan
AudienceAudience MediaMedia PurposePurposeTopics of Topics of
Discussion/Discussion/Key MessagesKey Messages
OwnerOwner FrequencyFrequency Notes/StatusNotes/Status
DefineDefine
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RACI Chart
Step Action/TaskResponsibl
eAccountabl
e Consulted Informed
1
2
3
4
5
6
7
8
9
10
R = Responsible – The person who performs the action/task.
A = Accountable – The person who is held accountable that the action/task is completed.
C = Consulted – The person(s) who is consulted before performing the action/task.
I = Informed – The person(s) who is informed after performing the action/task.
DefineDefine
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Current Status Key actions
completed
Issues
Lessons learned
Communications, team building, organizational activities
DefineDefine
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Next Steps Key actions
Planned Lean Six Sigma Tool use
Questions to answer
Barrier/risk mitigation activities
Last Revised:
No. Description/RecommendationStatus
Open/Closed/HoldDue Date
Revised Due Date
Resp Comments / Resolution
12345678910
Lean Six Sigma Project Issue Log
DefineDefine
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Define Tollgate Checklist Tollgate
ReviewTollgate Review
StopStopHas the team defined the opportunity from
both business and customer
perspectives?
Is this project important, i.e. has the project been chosen because it is in alignment with <Business Unit> goals and the strategic direction of the ‘business’?
What is the problem statement – detailing (what) is the problem, (when) was the problem first seen, (where) was is it seen, and what is the (magnitude or extent) of the problem. Is the problem measured in terms of Quality, Cycle Time or Cost Efficiency, not expected financial benefits? Ensure there is no mention or assumptions about causes and solutions.
Does a goal statement exist that defines the results expected to be achieved by the process, with reasonable and measurable targets? Is the goal developed for the “what” in the problem statement, thus measured in terms of Quality, Cycle Time or Cost Efficiency?
Does a financial business case exist, explaining the potential impact (i.e. measured in dollars) of the project on the business units, suppliers, external and business customers, etc.?
Is the project scope reasonable? Have constraints and key assumptions been identified? Have IT implications been addressed and coordinated with IT managers?
Who is on the team? Are they the right resources and has their required time commitment to the project been confirmed by Sponsor and Team?
What is the high level work plan? What are the key milestones (i.e. dates of tollgate reviews for DMAIC projects)? Who are the customers (business units, suppliers, external and business customers) for this process? What are their
requirements? Are they measurable? How were the requirements determined? Who are the key stakeholders? How will they be involved in the project? How will progress be communicated to
them? Do they agree to the project? What kinds of barriers/obstacles will need assistance to be removed? Has the development of a risk mitigation plan to
deal with the identified risks been developed?
DefineDefine
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Sign Off
• I concur that the Define phase was successfully completed on MM/DD/YYYY
• I concur the project is ready to proceed to next phase: Measure
Enter Name Here Deployment Champion
Enter Name Here Financial Representative
Enter Name Here Green Belt/Black Belt
Enter Name Here Master Black Belt
Enter Name Here Sponsor / Process Owner
DefineDefine
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Bonacorsi Consulting
Steven Bonacorsi is a Senior Master Black Belt instructor and coach. Steven Bonacorsi has trained hundreds of Master Black Belts, Black Belts, Green Belts, and Project Sponsors and Executive Leaders in Lean Six Sigma DMAIC and Design for Lean Six Sigma process improvement methodologies.
This Training Manual and all materials, procedures and systems herein contained or depicted (the "Manual"), are the sole and exclusive property of Bonacorsi Consulting, L.L.C.The contents hereof contain proprietary trade secrets that are the private and confidential property of Bonacorsi Consulting. Unauthorized use, disclosure, or reproduction of any kind of any material contained in this Manual is expressly prohibited. The contents hereof are to be returned immediately upon termination of any relationship or agreement giving user authorization to possess or use such information or materials. Any unauthorized or illegal use shall subject the user to all remedies, both legal and equitable, available to Bonacorsi Consulting. This Manual may be altered, amended or supplemented by Bonacorsi Consulting from time to time. In the event of any inconsistency or conflict between a provision in this Manual and any federal, provincial, state or local statute, regulation, order or other law, such law will supersede the conflicting or inconsistent provision(s) of this Manual in all properties subject to that law.
© 2006 by Bonacorsi Consulting, L.L.C. All Rights Reserved.