Six Sigma Quality Engineering Week 3 Chapters 4 (Define Phase)
Chapter 4 Outline <ul><li>Six Sigma Project Team </li></ul><ul><li>Six Sigma Team Charter </li></ul><ul><li>Project Manage...
Six Sigma Project Team   <ul><li>The team must: </li></ul><ul><ul><li>Understand the organizational context for process im...
Six Sigma Team Charter <ul><li>A team charter is an agreement between management and the team about what is expected.  </l...
Six Sigma Project Charter Example <ul><li>Process </li></ul><ul><ul><li>Process in which opportunity exists </li></ul></ul...
Six Sigma Project Charter Example <ul><li>Schedule </li></ul><ul><ul><li>Give the key milestones/dates </li></ul></ul><ul>...
Project Management <ul><li>Problem Statement    Objectives    Measures </li></ul><ul><li>Problem Statement </li></ul><ul...
Project Management <ul><li>Project Problem Statement </li></ul><ul><li>A problem is the unsatisfactory result of a job or ...
Project Management <ul><li>A poor problem statement </li></ul><ul><ul><li>Product returns are too high and will be reduced...
Project Management <ul><li>Project Objectives </li></ul><ul><li>Should address the problem statement </li></ul><ul><li>Qua...
Project Management <ul><li>Measures </li></ul><ul><li>Should be consistent with the problem statement and objectives  </li...
Structure of the Define Phase
Define Completion Checklist <ul><li>By the end of Define, you should be able to describe for your Champion: </li></ul><ul>...
Six Sigma Problem Statements <ul><li>A problem statement has the form: </li></ul><ul><li>“ WHAT is wrong </li></ul><ul><li...
What is Wrong and Where Does it Happen? <ul><li>A good problem statement will clearly define WHAT  is wrong.  Examples: </...
When Was This Seen? <ul><li>A good problem statement will clearly explain WHEN the problem occurred. </li></ul><ul><ul><li...
How Widespread is the Problem? <ul><li>A good problem statement will clearly explain the EXTENT of the problem.  </li></ul...
What is the Standard? <ul><li>A good problem statement will clearly explain HOW I KNOW there is a problem.  Examples: </li...
Primary Metric <ul><li>Primary Metric (used to measure process performance) </li></ul><ul><ul><li>The gage used to measure...
Sample Primary Metric Product Returns 0% 1% 2% 3% 4% 5% 6% 7% Aug-99 Sep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00 Mar-00 Apr-...
Secondary Metrics <ul><li>Secondary Metrics: </li></ul><ul><ul><li>Measurements of key input/output features, cycle time, ...
Sample Secondary Metric Pct of Orders Shipped within 24 hours   90% 91% 92% 93% 94% 95% 96% 97% 98% 99% 100% Aug-99 Sep-99...
Problem Statements – Exercise <ul><li>Break out into your groups.  Using the guidelines of this module, each group will re...
What is a SIPOC? <ul><ul><li>A high-level map of your process that includes: </li></ul></ul><ul><ul><ul><li>Approximately ...
Why Create a SIPOC Map? <ul><ul><li>SIPOC helps your team to:  </li></ul></ul><ul><ul><ul><li>Define process boundaries (s...
When to Create a SIPOC <ul><ul><li>All work can and should be considered as a process </li></ul></ul>In the Early Stage of...
Questions to Help with SIPOC <ul><ul><li>From the Output/Customer End: </li></ul></ul><ul><ul><li>Why does this process ex...
SIPOC - Process Development Example
SIPOC Workshop <ul><li>Instructions:  </li></ul><ul><ul><li>Prepare a SIPOC for the process of baking your cake. Use the g...
How to Create a SIPOC Map <ul><li>Name the process </li></ul><ul><li>Identify, name, and order the major process steps (ap...
SIPOC– a Foundation for Next Steps <ul><li>The list of Customers from your SIPOC are the starting point for the Voice of t...
Voice of Customer <ul><li>Understand why the Voice of the Customer (VOC) is critical </li></ul><ul><li>Know how to create ...
What Is the Voice of the Customer? <ul><li>The term Voice of the Customer (VOC) is used to describe customers’ needs in a ...
Why VOC Is Critical <ul><li>VOC data helps an organization and a project to: </li></ul><ul><ul><li>Decide what products an...
Why Collect VOC Data <ul><li>Customer requirements change constantly </li></ul><ul><li>Specifications tend to focus on tec...
VOC Process <ul><li>Outcomes </li></ul><ul><ul><li>A list of customers and customer segments </li></ul></ul><ul><ul><li>Id...
VOC Step 1: Identify Customers & Determine What You Need to Know <ul><li>Goal </li></ul><ul><ul><li>Identify your customer...
Who Are Your Customers? <ul><li>What are the outputs of your process? Who are the customers of that output? </li></ul><ul>...
Common Customer Segments <ul><li>Customer status: Former Customers, Current Customers, Customers of Competitors, Substitut...
Do You Have Customer Segments? <ul><li>If your customers seem to have similar needs across the board, you don’t necessaril...
Deciding the What and Why <ul><li>Revisit your charter—what is the purpose of your project? </li></ul><ul><li>How does you...
Sample Questions <ul><li>For all customers, you should ask questions such as: </li></ul><ul><ul><li>1. What is important t...
VOC Step 2: Collect and Analyze Reactive and Proactive Data 1. Identify customers  and determine what you need to know 2. ...
Typical Reactive Systems <ul><li>Customer complaints (phone or written) </li></ul><ul><li>Problem or service hot lines </l...
Proactive VOC Systems <ul><li>Interviews </li></ul><ul><li>Focus groups </li></ul><ul><li>Surveys </li></ul><ul><li>Commen...
VOC Plan: Final Touches <ul><li>The last step to finishing your data collection is to decide specifically how you will obt...
VOC Step 3: Analyzing Customer Data <ul><li>Goal is to generate a list of key customer needs in their language. </li></ul>...
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  • The Primary metric is the focus of the project objective statement. It is directly influenced by the behavior of the process defined by the project scope, and is the primary measure of your success. The primary metric reflects the “Y” (i.e. Y=f(x)) of the process to be improved . The primary metric(s) should focus on specific aspects of the process, correlate directly to process performance, and be controllable by the project team. Generally, primary metrics fall into three categories: defect or error rates, cycle time, or usage/consumption rates. It is the metric that will be tracked by the Process Owner after the project is in realization. It must reflect the original problem and the results of the changes made during the project. The primary metric is the metric to be tied to the financial goals of the project.
  • Suppliers Inputs Process Outputs Customers lass Settings Start Stop
  • The purpose of VOC activities is to identify the key business drivers of customer satisfaction. It is only through understanding the customer that you can effectively design, deliver and improve products and services. Understanding the VOC will be necessary in order to focus the improvement project properly and to develop the right measures.
  • Sometimes a special effort must be made to ensure the needs of all customers are considered. Segmentation can help you ensure that small but important customer segments are represented in your analysis, and help you identify important differences that could affect the purpose or focus of the improvement effort. For example, to see if the needs of high-volume customers differ from those of low-volume customers, analyze the data for the two groups separately Sometimes different methods will be required to get information on different customer segments. For example, you may be able to use customer surveys to understand current customers, but may instead want to interview former or potential customers in order to get a clearer idea of their precise issues. Substitute Customers are those who use a competing solution to meet a need that could be met with your process, product or service (for example, Greyhound and Trailways bus riders are substitute customers for the airlines).
  • Reactive systems: Most businesses &amp; processes have repeated daily contact with their customers during which customers share their opinions about what is important to them. Generally this contact information is used to solve customers’ immediate needs. It is important to explore this often underused source of information before attempting to gather new information. Much more can be learned about improving existing processes, products and services if extra effort is put into categorizing and analyzing the data from these sources, and reviewing them periodically to identify patterns, trends and other opportunities. Feedback from customers is easily lost. Extra effort must be made to preserve as much of this information as possible.
  • Proactive Systems Proactive systems are those in which you initiate contact with customers, as for example face-to-face interviews or customer visits. Face-to-face interaction with customers can provide a wealth of data and knowledge that is unobtainable by other means, for example how they use the product or the process output. If you have to design and initiate targeted customer contact to gather information specifically related to your project, look for ways to integrate your effort with ongoing customer contact in your organization. For example, request that process owners, customer service or marketing staff ask additional questions during regular contact with customers, or see if customers will allow you to observe their workplace during a scheduled visit.
  • 2007-695week 3.ppt

    1. 1. Six Sigma Quality Engineering Week 3 Chapters 4 (Define Phase)
    2. 2. Chapter 4 Outline <ul><li>Six Sigma Project Team </li></ul><ul><li>Six Sigma Team Charter </li></ul><ul><li>Project Management </li></ul><ul><li>Structure of the Define Phase </li></ul><ul><li>Define Metrics </li></ul><ul><li>Problem Statement Exercise </li></ul><ul><li>SIOPC Analysis </li></ul><ul><li>Voice of the Customer Analysis </li></ul><ul><li>Class Exercise </li></ul>
    3. 3. Six Sigma Project Team <ul><li>The team must: </li></ul><ul><ul><li>Understand the organizational context for process improvement projects </li></ul></ul><ul><ul><li>Know the basic elements of the team charter and review any questions you have about the charter for your own project </li></ul></ul><ul><ul><li>Understand the basics of estimating the business impact of a project and be able to relate them to your own project </li></ul></ul><ul><ul><li>Be able to identify key players and stakeholders and incorporate them into the communication plan for your own project </li></ul></ul>
    4. 4. Six Sigma Team Charter <ul><li>A team charter is an agreement between management and the team about what is expected. </li></ul><ul><li>The charter: </li></ul><ul><ul><li>A project charter is a form that has key information about your project. It is used to: </li></ul></ul><ul><ul><ul><li>Better define your project </li></ul></ul></ul><ul><ul><ul><li>Define what is Critical to Quality (CTQ’s) to the Customer </li></ul></ul></ul><ul><ul><ul><li>Write a business case (links project to business goals) </li></ul></ul></ul><ul><ul><ul><li>Write a problem and goal statement </li></ul></ul></ul><ul><ul><ul><li>Scope a project </li></ul></ul></ul><ul><ul><ul><ul><li>State the problem or opportunity </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Establish the project goal(s) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Identify criteria for success </li></ul></ul></ul></ul><ul><ul><ul><ul><li>List assumptions, risks and obstacles </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Communicate the above </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Obtain management support </li></ul></ul></ul></ul>
    5. 5. Six Sigma Project Charter Example <ul><li>Process </li></ul><ul><ul><li>Process in which opportunity exists </li></ul></ul><ul><li>Project Description </li></ul><ul><ul><li>Project’s purpose and scope </li></ul></ul><ul><li>Project Scope </li></ul><ul><ul><li>Define the part of the process that will be investigated </li></ul></ul><ul><li>Objectives </li></ul><ul><ul><li>Define the baseline, goal & target </li></ul></ul><ul><li>Business Case </li></ul><ul><ul><li>Define the improvement in business performance anticipated and when </li></ul></ul><ul><li>Team Members </li></ul><ul><ul><li>Who are the full time team members </li></ul></ul><ul><li>Expected Customer Benefits </li></ul><ul><ul><li>Who is the final customer? </li></ul></ul><ul><ul><li>What benefit will they see and what are their most critical requirements? </li></ul></ul>
    6. 6. Six Sigma Project Charter Example <ul><li>Schedule </li></ul><ul><ul><li>Give the key milestones/dates </li></ul></ul><ul><ul><li>Define completion date </li></ul></ul><ul><ul><li>Measure completion date </li></ul></ul><ul><ul><li>Analyze completion date </li></ul></ul><ul><ul><li>Improve completion date </li></ul></ul><ul><ul><li>Control completion date </li></ul></ul><ul><li>Support required </li></ul><ul><ul><li>Support needed for any special capabilities </li></ul></ul>
    7. 7. Project Management <ul><li>Problem Statement  Objectives  Measures </li></ul><ul><li>Problem Statement </li></ul><ul><ul><li>Should focus the team on a process deficiency </li></ul></ul><ul><ul><li>Communicate the significance to others </li></ul></ul><ul><li>Objectives </li></ul><ul><ul><li>Should address the problem statement </li></ul></ul><ul><ul><li>Quantify performance improvement </li></ul></ul><ul><li>Measures </li></ul><ul><ul><li>Primary Metric(s) </li></ul></ul><ul><ul><ul><li>Used to measure success </li></ul></ul></ul><ul><ul><ul><li>Consistent with problem statement and objectives </li></ul></ul></ul><ul><ul><li>Secondary Metric(s) </li></ul></ul><ul><ul><ul><li>Tracks potential negative consequences </li></ul></ul></ul>
    8. 8. Project Management <ul><li>Project Problem Statement </li></ul><ul><li>A problem is the unsatisfactory result of a job or process </li></ul><ul><ul><li>So what? What is the impact on the ‘customer’? </li></ul></ul><ul><li>What problem or gap are you addressing? </li></ul><ul><ul><li>What impact will closing the gap have on the customer? </li></ul></ul><ul><li>How will you know things are better? </li></ul><ul><li>It should not include theories about solutions </li></ul>Remember 5W’s + H to help give more focus <ul><li>What are the symptoms? What happens when the problem appears? </li></ul><ul><li>Where do symptoms appear? Where don’t they appear? </li></ul><ul><li>When do symptoms appear? Where don’t they appear? </li></ul><ul><ul><li>Who is involved? Who isn’t? </li></ul></ul>
    9. 9. Project Management <ul><li>A poor problem statement </li></ul><ul><ul><li>Product returns are too high and will be reduced by analyzing first and second level pareto charts </li></ul></ul><ul><li>A better problem statement </li></ul><ul><ul><li>Product returns are 5% of sales resulting in a business unit negative profit impact of $5M and reduced market share of 10% </li></ul></ul>Project Problem Statements
    10. 10. Project Management <ul><li>Project Objectives </li></ul><ul><li>Should address the problem statement </li></ul><ul><li>Quantify performance improvement </li></ul><ul><li>Should also identify timing </li></ul><ul><li>Needs to be Measurable, Actionable and Realistic </li></ul><ul><ul><li>Quality / Quantity / Time / Cost </li></ul></ul><ul><li>A poor objective </li></ul><ul><ul><li>Reduce product returns by implementing performance measures and objectives </li></ul></ul><ul><li>A better objective </li></ul><ul><ul><li>Reduce product returns of product line abc from 5% to 2.5% by the year end, to reduce overall returns by 1% and saving $1M </li></ul></ul>
    11. 11. Project Management <ul><li>Measures </li></ul><ul><li>Should be consistent with the problem statement and objectives </li></ul><ul><li>Primary Metric(s) - used to measure success </li></ul><ul><ul><li>Needs to include 3 series, plotted as a function of time: </li></ul></ul><ul><ul><ul><li>Baseline performance (average over past 12 months) </li></ul></ul></ul><ul><ul><ul><li>Actual performance </li></ul></ul></ul><ul><ul><ul><li>Objective / target performance </li></ul></ul></ul><ul><li>Secondary Metric(s) - drives the right behaviour </li></ul><ul><ul><li>Tracks potential negative consequences </li></ul></ul><ul><ul><li>More than one may be required </li></ul></ul>
    12. 12. Structure of the Define Phase
    13. 13. Define Completion Checklist <ul><li>By the end of Define, you should be able to describe for your Champion: </li></ul><ul><ul><li>What key process is involved (including its Suppliers, Inputs, Outputs, and Customers) </li></ul></ul><ul><ul><li>What about the process output is important to customers </li></ul></ul><ul><ul><li>What customers currently think of the process and its output </li></ul></ul><ul><ul><li>Why this project is important to your organization and what business goals the project must achieve to be considered successful </li></ul></ul><ul><ul><li>Who the players are on the project (sponsors, advisors, team leader, team members) </li></ul></ul><ul><ul><li>What limitations (budget, time, resources) have been placed on this project </li></ul></ul>
    14. 14. Six Sigma Problem Statements <ul><li>A problem statement has the form: </li></ul><ul><li>“ WHAT is wrong </li></ul><ul><li>WHERE it happened </li></ul><ul><li> WHEN it occurred </li></ul><ul><li> TO WHAT EXTENT and </li></ul><ul><li> I KNOW THAT BECAUSE…” </li></ul><ul><li>A problem statement: </li></ul><ul><ul><li>Does not include causes of the deficiency. </li></ul></ul><ul><ul><li>Does not include likely actions or solutions. </li></ul></ul><ul><ul><li>Is clear and concise and specific. </li></ul></ul>A good problem statement is essential to a good start.
    15. 15. What is Wrong and Where Does it Happen? <ul><li>A good problem statement will clearly define WHAT is wrong. Examples: </li></ul><ul><ul><li>“ Customers are not satisfied with my product…” </li></ul></ul><ul><ul><li>“ Yields are suffering…” </li></ul></ul><ul><ul><li>“ Reliability is insufficient…” </li></ul></ul><ul><li>A good problem statement will clearly define WHERE the problem occurs. Examples: </li></ul><ul><ul><li>“ Customers in the Midwest Region are not satisfied with my ordering service…” </li></ul></ul><ul><ul><li>“ Equipment availability for Urgent Care is poor…” </li></ul></ul><ul><ul><li>“ Document correctness is insufficient in Billing…” </li></ul></ul>
    16. 16. When Was This Seen? <ul><li>A good problem statement will clearly explain WHEN the problem occurred. </li></ul><ul><ul><li>“Customers in the Midwest Region are not satisfied with my ordering service. Starting in January…” </li></ul></ul><ul><ul><li>“Equipment availability for Urgent Care is poor. Since the consolidation of services…” </li></ul></ul><ul><ul><li>“Document correctness is insufficient in Billing after the introduction of flexi-forms” </li></ul></ul>
    17. 17. How Widespread is the Problem? <ul><li>A good problem statement will clearly explain the EXTENT of the problem. </li></ul><ul><ul><li>“ Customers in the Midwest Region are not satisfied with my ordering service. Starting in January, complaints have increased 15%…” </li></ul></ul><ul><ul><li>“ Equipment availability for Urgent Care is poor. Since the consolidation of services, delays caused by lack of availability have increased by 40%…” </li></ul></ul><ul><ul><li>“ Document correctness is insufficient in Billing after the introduction of flexi-forms. Errors have increased 28%…” </li></ul></ul>
    18. 18. What is the Standard? <ul><li>A good problem statement will clearly explain HOW I KNOW there is a problem. Examples: </li></ul><ul><ul><li>“ Customers in the Midwest Region are not satisfied with my ordering service. Starting in January, complaints have increased 15% at a time when complaint rates from other regions have remained static” </li></ul></ul><ul><ul><li>“ Equipment availability for Urgent Care is poor. Since the consolidation of services, delays caused by lack of availability have increased by 40% when the patient traffic has increased by only 5%” </li></ul></ul><ul><ul><li>“ Document correctness is insufficient in Billing after the introduction of flexi-forms. Errors have increased by 28% when the goal of the project was to reduce errors by 90%” </li></ul></ul>
    19. 19. Primary Metric <ul><li>Primary Metric (used to measure process performance) </li></ul><ul><ul><li>The gage used to measure your success </li></ul></ul><ul><ul><li>It must be consistent with the problem statement. It is used to track progress towards your goals and objectives. </li></ul></ul><ul><ul><li>It is usually reported as a time series graph of: </li></ul></ul><ul><ul><ul><li>Baseline data – averaged over a year, if available </li></ul></ul></ul><ul><ul><ul><li>Target performance – goal or objective </li></ul></ul></ul><ul><ul><ul><li>Actual (current) performance </li></ul></ul></ul><ul><li>Examples: </li></ul><ul><ul><li>Rolled throughput yield (RTY) [versus FTY] </li></ul></ul><ul><ul><li>Process Sigma Level or Ppk </li></ul></ul><ul><ul><li>Defects per unit (DPU) [versus Proportion Defective] </li></ul></ul>The Primary Metric is how the success of your project will be measured
    20. 20. Sample Primary Metric Product Returns 0% 1% 2% 3% 4% 5% 6% 7% Aug-99 Sep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00 Oct-00 Nov-00 Dec-00 Return $ As % Sales $ Baseline Actual Objective
    21. 21. Secondary Metrics <ul><li>Secondary Metrics: </li></ul><ul><ul><li>Measurements of key input/output features, cycle time, or process resource usage that may improve as a result of meeting objectives using the primary metric </li></ul></ul><ul><ul><li>Can be “Drivers” or “Riders” – i.e. Vital X’s impacting the project (Primary Metric) or “Good Consequential Metrics” </li></ul></ul><ul><li>Examples: </li></ul><ul><ul><li>Primary Metric : Cycle Time </li></ul></ul><ul><ul><li>Secondary Metric : Reduced backorders </li></ul></ul><ul><ul><li>Primary Metric : Defects per Unit </li></ul></ul><ul><ul><li>Secondary Metric : Available Floor Space </li></ul></ul>
    22. 22. Sample Secondary Metric Pct of Orders Shipped within 24 hours 90% 91% 92% 93% 94% 95% 96% 97% 98% 99% 100% Aug-99 Sep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00 Oct-00 Nov-00 Dec-00
    23. 23. Problem Statements – Exercise <ul><li>Break out into your groups. Using the guidelines of this module, each group will rewrite these problems statements to make them better: </li></ul><ul><ul><li>The complaint rate for our customer service group is too high, probably due to all of the new people in the department. </li></ul></ul><ul><ul><li>Food Services order errors are too high. They must be reduced. </li></ul></ul><ul><ul><li>Reduce measurement errors by cleaning the instruments more often. </li></ul></ul><ul><ul><li>Consumable use is increasing too fast. Reduce consumable cost. </li></ul></ul><ul><ul><li>Long term rolled throughput yield for Accounts Payable billing this year is 83% versus a past RTY of 95%. </li></ul></ul><ul><ul><li>Long wait time for phone service. It takes customers about 30 minutes to get an order completed. </li></ul></ul>
    24. 24. What is a SIPOC? <ul><ul><li>A high-level map of your process that includes: </li></ul></ul><ul><ul><ul><li>Approximately 4-7 process steps </li></ul></ul></ul><ul><ul><ul><li>Inputs that feed the process </li></ul></ul></ul><ul><ul><ul><li>The Suppliers (sources) of those Inputs </li></ul></ul></ul><ul><ul><ul><li>Outputs that result from the process </li></ul></ul></ul><ul><ul><ul><li>The Customers (recipients) of those Outputs </li></ul></ul></ul><ul><ul><li>Keep it simple, and think carefully about the scope </li></ul></ul>S U P P L I E R S C U S T O M E R S Outputs Inputs Process
    25. 25. Why Create a SIPOC Map? <ul><ul><li>SIPOC helps your team to: </li></ul></ul><ul><ul><ul><li>Define process boundaries (starting and ending points) </li></ul></ul></ul><ul><ul><ul><li>Identify data collection opportunities </li></ul></ul></ul><ul><ul><ul><li>Clarify who are the true customers of the process </li></ul></ul></ul><ul><ul><li>To avoid “scope creep.” </li></ul></ul><ul><ul><li>To identify likely sources of performance problems </li></ul></ul><ul><ul><li>To expose fundamental issues early in the project that could change the direction of the team </li></ul></ul>
    26. 26. When to Create a SIPOC <ul><ul><li>All work can and should be considered as a process </li></ul></ul>In the Early Stage of Any Project! Labor Material Ideas Information Environment Process Physical products Documents Information Services Decisions
    27. 27. Questions to Help with SIPOC <ul><ul><li>From the Output/Customer End: </li></ul></ul><ul><ul><li>Why does this process exist? </li></ul></ul><ul><ul><li>What products, services or outcomes does this process produce? </li></ul></ul><ul><ul><li>How does this process end? </li></ul></ul><ul><ul><li>Who uses the outputs or experiences the results from this process? </li></ul></ul><ul><ul><li>Who provides funding or staffing for the process activities, and who cares about the quality of outcome? </li></ul></ul><ul><li>From the Input/Supplier End: </li></ul><ul><ul><li>What items or information gets worked on? </li></ul></ul><ul><ul><li>Where do the items or information come from? </li></ul></ul><ul><ul><li>What effect do the inputs have on the process and on the outcome? </li></ul></ul><ul><ul><li>How does this process start? </li></ul></ul><ul><li>From the Middle – Inside the Process: </li></ul><ul><ul><li>What major steps happen to convert inputs into outputs? </li></ul></ul><ul><ul><li>What people or resources perform those steps? </li></ul></ul>
    28. 28. SIPOC - Process Development Example
    29. 29. SIPOC Workshop <ul><li>Instructions: </li></ul><ul><ul><li>Prepare a SIPOC for the process of baking your cake. Use the guidelines on the following page. </li></ul></ul><ul><ul><li>Be prepared to share your work with the class. </li></ul></ul><ul><ul><li>15 minutes to prepare + 2 presentations (5 minutes each) </li></ul></ul>
    30. 30. How to Create a SIPOC Map <ul><li>Name the process </li></ul><ul><li>Identify, name, and order the major process steps (approximately 4-7 steps) </li></ul><ul><li>Clarify the boundaries of the process – where it starts and where it stops </li></ul><ul><li>List key outputs and customers </li></ul><ul><li>List key inputs and suppliers </li></ul>
    31. 31. SIPOC– a Foundation for Next Steps <ul><li>The list of Customers from your SIPOC are the starting point for the Voice of the Customer (step 3) </li></ul><ul><li>The major process steps (macro map) from your SIPOC are the overview for later detailed process mapping </li></ul><ul><li>The Inputs, Process Steps, and Outputs on your SIPOC generates ideas for what can and should be measured, which feeds the Data Collection Plan in the Measure phase </li></ul><ul><li>The SIPOC contains clues about potential root causes that drive performance. </li></ul>
    32. 32. Voice of Customer <ul><li>Understand why the Voice of the Customer (VOC) is critical </li></ul><ul><li>Know how to create a plan for gathering VOC data </li></ul><ul><li>Know both reactive and proactive ways to gather VOC information </li></ul><ul><li>Know how to analyze data through the use of affinity diagrams and Kano diagrams </li></ul><ul><li>Be able to use a CTQ tree diagram to identify customer requirements and set specifications for them </li></ul>
    33. 33. What Is the Voice of the Customer? <ul><li>The term Voice of the Customer (VOC) is used to describe customers’ needs in a process improvement effort and their perceptions of your product or service. </li></ul>
    34. 34. Why VOC Is Critical <ul><li>VOC data helps an organization and a project to: </li></ul><ul><ul><li>Decide what products and services to offer </li></ul></ul><ul><ul><li>Identify critical features and specifications for those products, process outputs and services </li></ul></ul><ul><ul><li>Decide where to focus improvement efforts </li></ul></ul><ul><ul><li>Get a baseline measure of customer satisfaction to measure improvement against </li></ul></ul><ul><ul><li>Identify key drivers of customer satisfaction </li></ul></ul>
    35. 35. Why Collect VOC Data <ul><li>Customer requirements change constantly </li></ul><ul><li>Specifications tend to focus on technical data only </li></ul>
    36. 36. VOC Process <ul><li>Outcomes </li></ul><ul><ul><li>A list of customers and customer segments </li></ul></ul><ul><ul><li>Identification of relevant reactive and proactive sources of data </li></ul></ul><ul><ul><li>Verbal or numerical data that identify customer needs </li></ul></ul><ul><ul><li>Defined Critical to Quality requirements (CTQ) </li></ul></ul><ul><ul><li>Specifications for each CTQ </li></ul></ul>Based on Rath & Strong 1. Identify customers and determine what you need to know 2. Collect and analyze reactive system data then fill gaps with proactive approaches 3. Analyze data to generate a key list of customer needs in their language 4. Translate the customer language into CTQs 5. Set specifications for CTQs
    37. 37. VOC Step 1: Identify Customers & Determine What You Need to Know <ul><li>Goal </li></ul><ul><ul><li>Identify your customers </li></ul></ul><ul><ul><li>Decide what you need to know about their needs </li></ul></ul><ul><ul><li>Decide when and how you will get this information </li></ul></ul>1. Identify customers and determine what you need to know 2. Collect and analyze reactive system data then fill gaps with proactive approaches 3. Analyze data to generate a key list of customer needs in their language 4. Translate the customer language into CTQs 5. Set specifications for CTQs
    38. 38. Who Are Your Customers? <ul><li>What are the outputs of your process? Who are the customers of that output? </li></ul><ul><li>Are there particular groups of customers whose needs are especially important to your organization and project success? </li></ul>S U P P L I E R S C U S T O M E R S Outputs Inputs Process AB-588.2
    39. 39. Common Customer Segments <ul><li>Customer status: Former Customers, Current Customers, Customers of Competitors, Substitute Customers </li></ul><ul><li>Where they are in the “customer chain” </li></ul><ul><ul><li>Internal user  Distributor  End user </li></ul></ul><ul><li>Geography </li></ul><ul><li>Industry, Division or Department </li></ul><ul><li>Demographics </li></ul>
    40. 40. Do You Have Customer Segments? <ul><li>If your customers seem to have similar needs across the board, you don’t necessarily have to divide them into segments </li></ul><ul><li>If you suspect that different groups will have significantly different needs, and that these differences will influence how you structure your process, product, or service, then it will be worthwhile to think in terms of segments </li></ul>
    41. 41. Deciding the What and Why <ul><li>Revisit your charter—what is the purpose of your project? </li></ul><ul><li>How does your purpose relate to customer needs? </li></ul><ul><li>What do you need to know about the needs of the customers you’ve identified to make sure your project’s purpose stays on track? </li></ul>
    42. 42. Sample Questions <ul><li>For all customers, you should ask questions such as: </li></ul><ul><ul><li>1. What is important to you about our process/product/service? (Ask them to rank each of these needs in order of importance.) </li></ul></ul><ul><ul><li>2. What do you think of as a defect? </li></ul></ul><ul><ul><li>3. How are we performing on the areas you consider important? </li></ul></ul><ul><ul><li>4. What do you like about our product/service? </li></ul></ul><ul><ul><li>5. What can we improve about our process/product/service? What can we do to make your job easier? </li></ul></ul><ul><ul><li>6. What specific recommendations would you make to us? </li></ul></ul>
    43. 43. VOC Step 2: Collect and Analyze Reactive and Proactive Data 1. Identify customers and determine what you need to know 2. Collect and analyze reactive system data then fill gaps with proactive approaches 3. Analyze data to generate a key list of customer needs in their language 4. Translate the customer language into CTQs 5. Set specifications for CTQs <ul><li>Reactive systems </li></ul><ul><ul><li>Information comes to you whether you take action or not </li></ul></ul><ul><li>Proactive systems </li></ul><ul><ul><li>You need to put effort into gathering the information </li></ul></ul>
    44. 44. Typical Reactive Systems <ul><li>Customer complaints (phone or written) </li></ul><ul><li>Problem or service hot lines </li></ul><ul><li>Technical support calls </li></ul><ul><li>Customer service calls </li></ul><ul><li>Claims, credits, contested payments </li></ul><ul><li>Sales reporting </li></ul><ul><li>Product return information </li></ul><ul><li>Warranty claims </li></ul><ul><li>Web page activity </li></ul><ul><ul><li>Reactive systems generally gather data on: </li></ul></ul><ul><ul><ul><li>Current and former customer issues or problems </li></ul></ul></ul><ul><ul><ul><li>Current and former customers’ unmet needs </li></ul></ul></ul><ul><ul><ul><li>Current and former customers’ interest in particular products, process outputs or services </li></ul></ul></ul>
    45. 45. Proactive VOC Systems <ul><li>Interviews </li></ul><ul><li>Focus groups </li></ul><ul><li>Surveys </li></ul><ul><li>Comment cards </li></ul><ul><li>Data gathering during sales visits or calls </li></ul><ul><li>Direct customer observation </li></ul><ul><li>Market research, market monitoring </li></ul><ul><li>Benchmarking </li></ul><ul><li>Quality scorecards </li></ul>
    46. 46. VOC Plan: Final Touches <ul><li>The last step to finishing your data collection is to decide specifically how you will obtain the information, within what time frame the data gathering should take place, and how you will record the data </li></ul>
    47. 47. VOC Step 3: Analyzing Customer Data <ul><li>Goal is to generate a list of key customer needs in their language. </li></ul><ul><li>It is helpful to summarize this information in a meaningful way. </li></ul>1. Identify customers and determine what you need to know 2. Collect and analyze reactive system data then fill gaps with proactive approaches 3. Analyze data to generate a key list of customer needs in their language 4. Translate the customer language into CTQs 5. Set specifications for CTQs
    48. 48. Questions? Comments?
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