RLM & Associates LLC Your Lean Six Sigma & Project Management Trainers Lean Six Sigma DMAIC Workshop...

RLM & Associates LLCYour Lean Six Sigma & Project Management Trainers

Lean Six Sigma DMAIC WorkshopGreen Belt Part 2

6 σ Green Belt

04/18/23 1Kraft Foods Green Belt

04/18/23 Kraft Foods Green Belt 2

Six Sigma Pizza Inc.

Start Boundary: Customer places order Stop Boundary: Customer receives order

Suppliers Inputs Process Outputs Customers

Order Received

Pizza Built

Pizza Cooked

Pizza Finished

Pizza Served


Customer Identification

Objective is to determine who is directly impacted by the problem

Looking for ROI in improvement effortso Identify most impacted” customers

Correcting the problem for this group generates the largest benefit, and can be applied to the other customer groups


Who Are My Customers?

A customer is the recipient of a product or service:

May be internal or external– External customer

– pay for the product or service– Internal customer

– utilize the same output to complete their own processes, ultimately supplying the output to the external customer


Customer Identification Exercise

Internal ExternalCustomers Customers


Critical Customer Requirements

Objective is to determine the qualities the customer views as important.– How does the customer define quality?

What specific characteristics matter most?

Is there a difference among customer segments?– Which segment is the target segment?

Must be measureable!

Requires that we gather feedback from our customers



Product Quality Service Quality Price

Reliability Convenience Low original priceDurability Reliability ValueUseability/Features Speed Total costsPrestige InterractionServiceability TangiblesFailure Recovery Failure Recovery


Voice of the Customer

Collects information from the customer directly through various sources

– Internal intelligence– Outbound communications– Inbound communications– Casual contact– Formal transactions– Research



Typical Methods

Interviews

Focus Groups

Surveys

Customer Complaint Data


Critical Customer Requirements CCR’s


Key Customer Issues

Critical Customer Requirements

Actual customer comments which reflect their perception of:

• An attribute of a product orService

• An experience with aproduct/service or delivery

• An encounter orexperience with a businessprocesses or representative

“This mower is way too hard to start”

“I’m always on hold or end up talking to the wrong person”

“This package doesn’t do squat”

The real customer concerns, values or expectations regarding a product or service. Void of emotion or bias, the statement describes the primary issue a customer may have with the product or services. Describes the experience surrounding the attributes of the product or service expected or desired by the customer.

Wants the mower to start quickly and painlessly

Wants to talk to the right person quickly

The software does what the vendor said it would do

The specific andmeasurable expectation which a customer has regarding a product or service.

Mower starts within two pulls on the cord

Mower starts with an effortless pull on the cord not exceeding 24” in length

Customer reaches correct person the first time within 30 seconds (good)

The software is fully operational on the customer's existing system


VOC to CCR

Customer Said Customer Issue Critical Customer Requirement



Multiple CCR‘s will require prioritization– ROI is key

1. “Must Be‘s”– Unless fully functional, customer will be dissatisfied

2. Performance Improvement–Improves competitiveness

3. Delighters–The “human touch” extras


Air Travel Example

Must Be’s Performance Delighters

Safe Arrival Seat Comfortable Free Upgrades

Accurate Booking XM/Sirius Satellite Wireless Internet Available for free

Luggage Arrives with Passenger

Friendliness of Staff Computer Plug-ins

On-time Arrival


Six Sigma Pizza Exercise

Must Be’s Performance Delighters


Six Sigma Pizza VOC

Customer Complaints

Delivery took too long to arrive

Pizza cold when delivered

Pizza was stuck to the top of the box

Adding 20% tip to my group of 16 was not justified

Jeff Gordon crashed in turn 3 and my pizza was stuck to the top of the package

My pizza was cold when I got it home



Customer Loyalty Score over the last 12 months

– Dine In Customers 52%

– Carry Out Customers 48%

– Delivery Customers 22%


Team Exercise

Assign teams:

Complete the SIPOC Exercise for Six Sigma Pizza Inc.

Complete VOC to CCR template

Complete Prioritization Matrix

Be prepared to present



Customer Said Customer Issue Critical Customer Requirements


Pizza was cold


Jeff Gordon crashed in turn 3 and ………





Timely delivery

Pizza was cold Pizza is supposed to be HOT


Pizza should be in one piece


Safe and courteous drivers





Timely delivery Delivered in 35 minutes

Pizza was cold Pizza is supposed to be HOT

110 degrees at time of delivery


Pizza should be in one piece

Intact not stuck to box


Safe and courteous drivers No accidents, tickets or complaints about drivers



Start Boundary: Customer places order Stop Boundary: Customer receives order

Suppliers Inputs Process Outputs Customers

Customer

Ingredient Suppliers

Oven Suppliers

HR Department

Marketing Department

Media

Order

Ingredients

Equipment

Staff

Coupons

Order Received

Pizza Built

Pizza Cooked

Pizza Finished

Pizza Served

Carry Out Customers

Dine in Customers

Delivery Customers

Cooked Pizza


Document and Analyze Processes


Functional Deployment Process

Like the top-down process map, a functional deployment process map displays the steps depicted in a process in sequential order. The functional deployment process map also illustrates where each step is performed and who is involved.

– Features

Symbols, such as those shown below, are used to illustrate the process flow, decision points, and activities performed.

Functional deployment process maps generally take considerable time to prepare, but they are extremely useful in understanding a process prior to attempting improvements. They require input from people familiar with each area of the process.


Functional Deployment Mapping


Six Sigma Pizza Exercise

Turn top-down flow chart in to Functional Deployment Map

Hand drawn or Visio is acceptable

Present to group

Remember…. AS IS Process!


Quick Win Opportunities

Some processes have been neglected for so long that a simple mapping exercise may illuminate many easy and obvious improvement opportunities.

Conducting a common sense assessment of the value of each step may help to identify these opportunities, referred to as ―quick wins, “or ―low hanging fruit.”

Teams should always be prepared to identify and pursue quick win opportunities —the return on investment can be very high.


Quick Win Opportunities

Criteria for Defining an Opportunity as a Quick Win

Easy to Implement: Making the change or improvement does not require a great deal of coordination and planning.

Fast to Implement: Making the change or improvement does not require a great deal of time.

Cheap to Implement: The change or improvement does not require a large investment of capital, of human resource or of equipment or technology.

Within the Team‘s Control: The team and its management are able to gain the support of the people needed to make the change. The scope of the change is within the team‘s ability to influence.


Qualitative Analysis

Introduction to Improvement Criteria Prior to detailed measurement and analysis of a process,

a team can often identify quick and simple opportunities for significant improvement. Sometimes these ―quick wins‖ are sufficient for accomplishing the team‘s improvement goals.

Customer Value-Added

An activity can be described as adding value for the customer only if:

The customer recognizes the value It changes the product toward something the customer expects It is done right the first time


Qualitative Analysis

Operational Value-Added

An activity adds operational value if it is not a customer value-added activity and is:

Required to sustain the workplace ability to perform customer value-added activities

Required by contract or other laws and regulation Required for health, safety, environmental or

personnel development reasons Done right the first time


Value Added Analysis

Examples: Non-Value-Added Activities

– Counting the amount of work– Inspection and checking– Sorting work– Logging information– Checking calculations– Reviewing and approving– Moving and set-up– Monitoring work– Stamping– Any type of rework


Value Added Observations

Let’s get back into your teams

Based on everything you know so far….

– Quick Wins?

– Value Add Concerns?


Stakeholder Management




Committed Leadership is critical for success!

Questions to ask:

Who is the sponsor and stakeholders?

What is his/her current level of dissatisfaction with the current state?

What data has been surfaced to create this need or discomfort?



Create and strengthen relationships which can be leveraged to manage the change efforts

Manage expectations

Establish two-way communications channel

Develop a process to detect fearful or negative reactions which could hinder the change effort

Manage resistance to change


Who is a Stakeholder?

Stakeholders are individuals and groups of people who have the ability to influence or are impacted by the direction and success of the project

–Customers, owners, suppliers and other business partners, manufacturers, team members, regulators, people within the process, investment community

Different stakeholders can perceive the same changes in dramatically different ways

Assessment of stakeholders and stakeholder issues are necessary to identify:

–The range of interests –Issues to be taken into consideration in planning change and –To develop the vision and change process in a way that generates the greatest support



Risks of Inadequate Stakeholder Management:

Unrealistic expectations

Stakeholders concerned over personal impact

Rumor mill becomes the main source of information

Resistance to the change effort

Fear and confusion


Types of Resistance in Stakeholders

Technical Resistance: stakeholders believe 6 Sigma produces feelings of inadequacy or stupidity on statistical and process knowledge

Political Resistance: stakeholders see 6 Sigma as a loss of power and control

Organizational Resistance: stakeholders experience issues of pride, ego and loss of ownership of change initiatives

Individual Resistance: stakeholders experience fear and emotional paralysis as a result of high stress


Listens

Positive toward the project

Demonstrates awareness of project goals, approach, timeline and team members

Enthusiastic; desire to be involved

Willingness to offer resources, facilities & personal time

Proactive to see what personal impact the project will have

Voluntarily contributes ideas

Supportive Stakeholder Challenging Stakeholder

Apathetic

Interrupts, not really interested complacent, why change?

Project perceived as low priority

Not cooperative or forthcoming

Plainly critical…a vocal opponent

Wants nothing to do with project

Behaves as a barrier to project implementation requirements

Reluctance to talk/discuss


Strategies to Overcome Resistance

Technical Resistance: focus on high-level concepts to build competencies. Then add more statistical theorems as knowledge base broadens

Political Resistance: address issues of perceived loss straight on. Look for champions to build consensus for 6 Sigma and change

Organizational Resistance: look for ways to allow the resistor greater control over the 6 Sigma initiatives

Individual Resistance: decrease the fear by increased involvement, information and education


Communication is the Key

Keep stakeholders aware and involved in your project…

Gate Reviews

Update Meetings

Gallery Walk


Project Stakeholder Management Plan:

Stakeholder Primary Needs

Planned Actions Frequency of Action

Who will Manage this Stakeholder?

Support Needed to Execute Role

Project Name: __________________


Communication Strategy

Communication strategy defines the message to be delivered and the method of delivery

What is the message to be delivered?

Who is the target audience?

Is it tailored to the audience?

Who will deliver the communications?

When should the communications be delivered?

How will the communications be delivered?

How frequently should communications occur?

How will feedback be obtained and used to address resistance?


Communication for Successful Change

Honest and simple

Communicate early and communicate often

Communicate with all of your change ―targets‖ –be consistent from one audience to the next but tailor your message to be relevant

Be open to concerns and questions from all levels and areas of the business affected; invite dialogue

Build communications to address concerns voiced

A clear demonstration of the leadership‘s commitment to the change and the success of the business

A clear description of the compelling need to change


Project Communication Plan:

Action/Task Objective Key Message Audience Timing Media Activity

Owner

Project Name: __________________



Change Management


Organizational Change Management?

Organizational Change Management is the process of managing change with a focus on people, culture, structure and process

The goal of Organizational Change Management is to “manage” the change by demonstrating the value of the change and addressing any resistance

Organizational Change Management does not eliminate “resistance” to change, it simply manages it


Why is Change Management Important to the Success of 6 Sigma Projects?

Understanding and managing change is vitally important. Managing the human element will be one of the most challenging and dynamic components of your team experience.

6 Sigma methodology and tools are fact based and data driven. The project team also needs tools to manage one of the most important tasks of all…getting people to champion your project and accept your solutions!


A Basic Change Model

Change can cause a mixture of thoughts and emotions

– Excitement

– Yearning for the past

– Unfocused energy

– Productivity dip—remember, the “dip” is going to happen, however the objective is to lessen the dip, not remove all the pain


Transition State

The transition state is defined by the implementation plan developed in Improve. This is the process in which people and organizations move from the “as is” to the “to be”.

Consider this: Today I work at Chuckie‘s, tomorrow I‘m doing brain surgery…

–What needs to be done to get there? What skill sets, training, procedures are required to facilitate the change?


Change Management Roles

Sponsor

–Person with ultimate responsibility, allocates resources and calls for change

Stakeholder

–May be responsible for area being impacted –Needs clear understanding of the change

–Willing to support the change

–May be a sponsor


Change Management Roles

Change Agent

–Sponsors, Stakeholders, Black Belts, Green Belts

–Create and monitor change plan

–Need to fully understand and be able to clearly communicate the change

Target

–Group or groups impacted by the change

–Sponsors, stakeholders, change agents and customers could and would likely be targets of the change


Culture Change

Culture shapes an organization‘s decision patterns, guides its actions, and drives the individual behavior of all members (“The way we do things around here”).

–What are the written and unwritten rules?–How do people behave? –What do we believe?

The degree of change and what people believe, how they behave, and the rules they follow will have a strong impact on the success or

failure of the change.


What is Required for Change?

A Compelling Need…

The benefits or rewards of change are greater than the cost and risk of change

...lighting a "burning platform" at both the organizational and personal level


Determine Compelling Need

Documenting the compelling need will require the team to answer the following questions using data captured in the Define Phase:

–Process mapping –Qualitative Analysis –Define Critical Customer Requirements

Questions to Answer: Process

What is not working well today?Are inter-related process identified?

StructureWhat are current tools/technology? What is the organization structure?Who are potential targets?Resources unused or underutilized?


Validate Compelling Need

Dissatisfaction with the current state must be greater than the natural resistance to change

Validates the business opportunity and risk

Builds the momentum needed to keep the project moving forward

Establish shared recognition, by both the team and key stakeholders of the need and logic for change

The ability to define the need for change as both a threat and an opportunity


Threat Opportunity Matrix

Short Term Threats:What are the threats if the project does not happen / if we do not do the project?

Short Term Opportunities:What are the short term opportunities with the proposed project?

Long Term Threats:What are the threats if the project does not happen / if we do not do the project?

Long Term Opportunities:What are the long term opportunities with the proposed project?

Threats(if we don‘t do the project)

Opportunity(if we do the project)

LongTerm

ShortTerm

This matrix helps determine the driving factors behind the project which can then be used in communicating the need.

Focusing on the Long Term ensures involvement beyond what can be gained from the Short Term

sense of urgency!

Fill Out Each

Quadrant


Threat/Opportunity Exercise



Long Term

ShortTerm


Twelve Key Drivers of Successful Change

Accountability - Identifying specific roles, goals, and performance measures for the change

Adaptability - Learning from, and taking action based on, the successful and unsuccessful change actions that are taken

Communication - Influencing those who will sponsor, support, implement or be affected by the change, including the possible determination of a displacement plan

Focus, Purpose, and Vision - Defining articulate descriptions of the technical and organizational compelling need and vision for the change



Measurement and Results - Determining the measurable improvements to be achieved through the change, and identifying the data to be used to track those improvements

Momentum - Responding to shifts in the pace of the implementation of change actions and acceptance

Readiness - Aligning the change with the existing culture and work climate based on an assessment of the ―readiness to change‖ of those individuals, or groups of individuals, likely to be impacted by the change

Recognition - Reinforcing individuals and groups achieving results consistent with the change, and determining sanctions for those who are not



Skill Development - Providing training to prepare for and enable effective participation during and after the change at all levels

Team Orientation - Using teams throughout the organization to manage, implement and take ownership for the change

Involvement - Ensuring that those affected by the change participate fully in decisions and implementation

Leadership – Taking leadership actions through an infrastructure designed to promote and enable change


Team Exercise

Complete Stakeholder Management plan

Complete Threats/Opportunities Matrix

Complete Communication Planning


Threat/Opportunity Exercise



Long Term

ShortTerm

RLM & Associates LLC Your Lean Six Sigma & Project Management Trainers Lean Six Sigma DMAIC Workshop...

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