Day 1 - Yellow Belt
Day 1 - Yellow Belt
Day 1 - Yellow Belt
Yellow Belt
Introduction to Lean Six Sigma
Welcome and Introductions
• Name
• Organization and role
• Time with HP
• Experience with Lean Six Sigma
• Expectations from the class
• Ice-breaker
2
HP’s Continuous Improvement Journey
Future State
Problem solving self-sufficiency
Current State
Strategically targeted improvement
Isolated process engagement
A true data-based culture
Limited, LOCALIZED improvement Embedding
Continuous Fully engaged CI leadership
Employees disconnected from HP strategy Improvement
Skilled, ACTIVE workforce
Inadequate data skills into our DNA
“ONE HP” Continuous Improvement Culture
Over-engineered processes
Embed- 2015
Fragmented CI support
Define- 2013
3
Objectives
• Learn to use Lean Six Sigma as a powerful business advantage
• Develop an understanding of the DMAIC methodology
• Increase your process and data skills using Lean Six Sigma tools
• Practice using DMAIC for data-based process improvement
• Introduce some simple statistical concepts
4
Ground Rules
• This is a learning environment – Make the most of it
• This class provides basic skills but keep a list of questions and things that YOU would
like to learn more about
• HAVE FUN!!
5
Facilities
Emergency exits
Rooms
Breaks
Lunch
Restrooms
Drinks / Refreshments
6
X Ball: A Business Simulation (Round 1)
7
Welcome to X Ball
Simulation Roles
• Customer
• Salesperson
• Procurement
• Internal Transfer
• Five Operators
• Quality Control
• Packaging
• External Transfer
8
How it works:
Got it?
9
X Ball: Let’s try it!
10
Lean Six Sigma
Introduction
What Is Lean Six Sigma?
• Customer-focused X
XX X XXXX X
X
philosophy of data-driven XX X X X
X X
process excellence
12
Why does HP need Lean Six Sigma?
• Poor or inconsistent quality reduces sales revenues and customer loyalty
• In a value stream, as much as 95% of lead time is spent waiting
• Poor quality increases customer lead time
− A 10% error rate can increase cycle time by 40% while reducing overall capacity
14
Lean Six Sigma Roles
Creates, owns, and articulates the Lean Six Sigma Vision
Strategy
Executive Belt
Relentlessly drives it to completion
Deploys Lean Six Sigma in the business
LSS Business Champion
Drives KPIs and priorities
Lean Six Sigma expert
LSS Master Black Belt
Works on business-wide issues, teaches and mentors
Execution
15
Lean Six Sigma Framework
1. Define 2. Measure 3. Analyze 4. Improve 5. Control
Describe the problem Collect baseline data Identify the root cause Select the best solution Sustain the gains
16
Define Phase
X Ball Project Charter
18
Writing a Problem Statement
• Describes the problem the team is working to solve
• Must quantify “what” is happening and the negative impact
• Should NOT contain unverified causes, solutions, or blame
Example:
19
Customers Define “Quality”
Customer
Ease
Aesthetics
of Use
Price
and Cost
20
The Kano Model
3 Types of Customer Requirements:
• Must Be’s – “Dis-satisfiers”
− Basic needs or expected attributes
− Implicit requirements that MUST be met
• One-Dimensional – “Satisfiers”
− Stated performance requirements
− “More/less the better”
• Delighters- “Wow Factors”
− Difficult to determine but may create positive
customer experience
− Become dis-satisfiers over time
21
Voice of the Customer
Translate customer needs into measurable requirements
Good customer requirements:
• Are specific and measurable
• Are related directly to an attribute of the product or service
• Don’t bias the design toward a particular approach or technology
• Are complete and unambiguous
• Describe what, not how
Voice of the After Clarifying the Customer
Customer Key Issue(s) Requirements
• “The mower should be
• Mower starts within two
easy to start.” Wants the mower to start pull on the cord
• “The cord shouldn’t be too quickly and painlessly
• Pull effort <= 5 pounds
hard to pull.”
22
SMART goals
23
Working with stakeholders
Support & Influence Matrix •LS + LI = Anchors, opposition won’t
influence organization. Cast your rod trying
to shift their support, but if they don’t bite,
cut bait.
25
Stakeholder Analysis
Why is your plan important to each stakeholder Proposed strategy and
Who is affected by How critical is this person to
What do you need from each person to and/or what are the risks to your plan from each actions to gain
your plan or needed the plan’s success?
successfully carry out the plan? stakeholder if no support? stakeholder commitment
in the plan
(what’s in it for me?)
High Med Low Importance Risks
• Central
• Lack of adoption will
repository/standard
• Adhere to standard process minimise the benefit • Accurate info in a central
ES PM’s
• Report final $ savings.
process to follow-
Improved user experience
we see from repository
• Attach project & financial docs to PPMC improvement • Quicker & easier process
• Minimised requests for info
changes in terms of to generate
& reporting lines-saving
data accuracy.
time
• Will quicken the ability to
• Buy in from leadership
generate an accurate
team
• Supply monthly report of project savings realised report. • Reduced
• Quicker, more agile
ES Quality & estimated for the year ($) • Improve PPMC data improvement if plan
process
accuracy isn’t followed
• Less manual
• Minimise tasks which are
• Accurate reporting
currently done manually
• Emphasis on greater
• Changes wont be outputs
PPMC Steering • Review and implement necessary change • Drives usage of the tool implemented to the • Drives usage
Committee measures to drive improvement • Improves outputs tool to drive • More accurate reporting
improvement • Makes the tool a success
story
• More reliable process
• Greater accuracy around
$ benefit in PPMC
• Tasked with verifying all $ • Quicker & less complex
• Determine & verify where savings will be realised
BPM Finance
in the P&L
•
benefit from projects
Changes could result in
• Cycle time remains
to produce
• Outline where further detail is required high due to wait time
more accurate readings
(Rejection process?)
quicker
26 26 3 June 2015
X Ball: What is the VOC?
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SIPOC
A chart showing the high-level components of a process
− Suppliers – Significant internal/external suppliers to the process
− Inputs – Significant inputs to the process i.e. material, forms, information, etc.
− Process – One block representing the entire process
− Outputs – Significant outputs to internal/external customers
− Customers – Significant internal/external customers of the process
Hiring
Manager Request New person
Hiring Process in place and Manager
Society Candidate productive
Pool
Brainstorm Brainstorm
Identify Identify Label the and and
Suppliers Inputs Process Prioritize Prioritize
Outputs Customer
29
Creating a SIPOC for your process
30
X Ball: SIPOC
31
Process Mapping
• A Process Map is a picture of how process steps turn inputs into outputs
• Uses standard symbols
• The most common process map types are Linear,
• Cross-Functional, and Layout maps
Note:
Create early versions of process maps on white-boards, paper, or Post-It™
notes to facilitate changes as your understanding of the process evolves.
Decision Pre-defined
Start / End
Point
Flow Action
Process
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Process map example:
Setting up a conference call example: detailed level for Get conference line step
Get
Select Set date Notify
Start conference Done
attendees and time attendees
line
Did you
Look them Go to
find
up No GetIT
them?
33
Layout Map (Spaghetti Diagram)
• A Layout Map is a graphical representation of the work area
• Arrows are drawn between work stations to show the flow of the process
Station 1 Station 4
Station 6 Station 2
Station 3 Station 5
Station 7
34
X Ball: Process Map
35
High-level process map for X Ball
Operator 1
Internal
Customer Sales takes selects band
Sales picks Procurement Transfer
calls out order to and installs;
up order gets ball takes ball to
“Sale!” Procurement transfers to
Operator 1
Operator 2
No
External
Repeat for Send to QC Customer
Good Transfer
Operators for Packaging receives
2–5 inspection
? Yes back to
product
Customer
External
Transfer Operator 2
Quality
Check
Packaging
Procurement
Operator 3
Operator 5
37
Sales
Define Phase
Objectives: Deliverables:
• Confirm that the project is viable • Project Charter
• Define and confirm scope • Problem statement
• Key metrics
• Confirm sponsor and stakeholder
• Team members
support
• SIPOC
• Finalize team members
• High-level Process Map
• Begin to detail the problem, process,
and project • Project Management tools
• Stakeholder Analysis
• Communication Plan
• Project Plan
38
Measure Phase
What Is a Measure?
• A quantified evaluation of characteristics and/or level of performance based on
observable data
• Examples include:
• Length of time (speed, age)
• Size (length, height, weight)
• Dollars (costs, sales revenue, profits)
• Counts of characteristics or “attributes” (types of customer, property size, gender)
• Counts of defects (number of errors, late checkouts, complaints)
42
Types of data
Qualitative vs. Quantitative
• Qualitative: Describes a quality or characteristic (color, type, material, etc.)
• Quantitative: Measurable attribute (age, height, length, etc.)
vs.
vs.
43
Using Input, process, and output measures
Y = f(X)
Input (X) Process (f) Output (Y)
What you get out is the result of what you put in and how you process it!
44
Measures
Input, process, and output measures
45
X Ball: Are we measuring the right things?
46
Operational definitions
Example
Message 1: Class begins promptly at 9 a.m. It is very important
that you arrive on time.
Message 2: Class instruction begins at 9 a.m. Please have your
laptop set up and connected to the network before class starts.
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Data collection plan
• Defines what, where, when, how, and by whom
• Has clear operation definitions
• States the sample size for each measure
• Includes space for stratification factors and comments
• What data is needed to “baseline” our problem?
• What “upstream” factors may affect the process/problem?
• What do we plan to do with the data after it’s gathered?
Measures of Center
• Mean
Frequency
60
• Median 45
• Mode 30
10 20 30 40 50 60 70 80 90 100 110 120
Response
Measures of Variation
• Range
• Standard Deviation
49
X Ball: Baseline data & operational definitions
50
Measure Phase
Objectives: Deliverables:
• Identify key measures • Detailed Process Map
• Check for consistent operational • Key metrics
definitions • Input/Process/Output Metrics
• Collect and display baseline data • Operational definitions
• Update the charter, if needed • Data collection plan
• Baseline data display
• Histograms
• Run charts
• Pareto charts
51
Analyze Phase
Three types of analysis
• Data: Using observations to describe the process and its behavior
• Experiential: Stepping through the process with the team to identify typed
and reasons for problems
53
Graphical data analysis: Pareto Charts
Pareto chart: Reasons for being late to work
70 100%
90%
60
80%
50 70%
60%
40
50%
30 32 40%
20 30%
20
20%
10
10%
8 6 4 3
0 0%
Traffic Sick Overslept Family care Car trouble Bad weather
54
Anatomy of a histogram
40 D
30
C
20
10 E
0
100 200 300 400 500 600 700 800 900
55
Anatomy of a run chart
Identify key process factors
• Gather data
• Draw and label the horizontal and vertical axes
• Add the data to the chart 90
70
# Miles RunRun 68 68
60
# Miles
60 60
50 50
50 55 55
50 50 50
40
46 46
30
25
20
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Week
56
Week
Graphical data analysis: Scatter Plots
Number of Births
Average Temp
Lurking variables!
57
X Ball: Graphical data analysis
58
Value analysis
• VALUE is determined by the customer
• Traditional criteria for Value-Add include:
• Must change Form, Fit, Function, or Feature
• Something the customer is willing to pay for
• Must be done right the first time
61
Qualitative Analysis
Tech Ball Cause & Effect Diagram
Why?
Why?
Poor throwing skills
Why? Defects
Why?
Materials Methods
62
5 Whys: A true railroad story
Does the statement, “We've always done it that way!”
sound familiar?
A true story …. the global, standard, mainline railroad gauge
(distance between the rails) is 4 feet, 8.5 inches.
Why was that gauge used?
• The first railroads were built in Great Britain by laying rails in the ruts in existing stone-paved
roads
• Those roads were built by Imperial Rome and have been in use ever since
• Roman war chariots formed the ruts, later users matched the spacing to preserve their wheels
• Roman military chariots had a standard wheel spacing ---
• Just wide enough to accommodate the width of two war horses
63
Now the twist to the story
• The US Space Shuttle had two big booster rockets attached to the sides of
the main fuel tank
• These solid rocket boosters were made at a factory at Utah
• The engineers who designed the rockets would have preferred to make
them a bit fatter
• but they were shipped by train through tunnels wide enough for standard
railroad cars…
64
X Ball: What are the causes?
65
Finalizing the Root Causes
Following our analysis, we then:
Identify and
prioritize
root causes
Select the
vital few
Validate
with data
67
Improve Phase
Improve phase activities
Brainstorming
Find What will address the root causes?
solutions Solution Selection
Which is the BEST solution?
Test
Implement
69
Brainstorming
70
Solution Selection
Generate
Narrow the List Select the Best
Potential
and Synthesize Solution
Solutions
71
Affinity Diagrams
• Use brainstorming to develop potential solutions
• Use an Affinity Diagram to help categorize and consolidate possible solutions
72
Evaluate solution alternatives
Solution selection matrix: Call center example
Solution 4 7 9 Sum
73
Test
Pilot purpose
• Confirm expected results Find
• Estimate cost or savings solutions
• Obtain feedback and data
• Prepare for full-scale implementation
Test
74
Test
Pilot steps
Optimized solution
75
Implement
Find
solutions
Test
Action plan
Implement A plan to implement the solution
Tracking plan
A plan to track improvement over baseline
76
X Ball: What can we fix? How can we do it?
77
Change vs. transition
78
Improve Phase
Objectives: Deliverables:
• Brainstorm possible solutions • Decision-making and evaluation tools
• Evaluate alternatives • Solution Selection Matrix
• Determine optimal solution • Pilot
• Pilot the solution • “Should be” map
• Develop Implementation Plan
• Project Implementation Plan
• Implement new process
79
X Ball: A Business Simulation (Round 3)
80
Control Phase
Control plans
Control plans provide a written summary of actions to keep the process in control
• They do not replace information contained in detailed instructions
82
Monitor the process: Control Plan example
83
Monitor the process
Control chart
Without control of an improved process, it tends to revert to old performance levels
UCL
Performance
Mean
LCL
Time
84
Before improvement Implementation Without controls in place
Communications plan
85
Lessons learned sharing
• Other areas of HP need to know about your improvements!
• If you had inefficiencies, likely others do also
• Save other areas the need to “re-invent the wheel”
86
Control Phase
Objectives: Deliverables:
• Develop Control Plan • Solution implemented
• Develop SOPs • Process monitoring
• Monitor performance • Training and control documents
• Complete transition meeting • SOPs
• Process Control Plans
• Develop communication/close-out plan
• Training Plans
• Document opportunities for replication • Visual process controls
• Document additional project • Project Transition Plan
opportunities
• Project hand-off and closure
• Team feedback session
• Final Project Report
87
Conclusions and
Takeaways
HP’s Continuous Improvement Journey
Future State
Problem solving self-sufficiency
Current State
Strategically targeted improvement
Isolated process engagement
A true data-based culture
Limited, LOCALIZED improvement Embedding
Continuous Fully engaged CI leadership
Employees disconnected from HP strategy Improvement
Skilled, ACTIVE workforce
Inadequate data skills into our DNA
“ONE HP” Continuous Improvement Culture
Over-engineered processes
Embed- 2015
Fragmented CI support
Define- 2013
89
90