Your SlideShare is downloading. ×
0
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
5. The DMAIC: Define Stage Detail (1,002 k ppt)
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

5. The DMAIC: Define Stage Detail (1,002 k ppt)

6,765

Published on

0 Comments
4 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
6,765
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
508
Comments
0
Likes
4
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. The DMAIC Process Detail The Define Phase
  • 2. The Define Stage The Voice of the Business The Voice of the Customer The Voice of the Process Define Business Case and Project Team Charter Define the Customer and the Customer Requirements Define and map the process
  • 3. The Define Phase
    • Identify and confirm the improvement opportunity;
    • Develop a Project Team Charter
    • Build an Effective Team;
    • Define the Customer and Customer Requirement;
    • Define and Map the Process.
  • 4. DMAIC Process Storyboard TEAM FORMATION DEFINE MEASURE ANALYSE IMPROVE - I : Generate Potential Solutions CONTROL - Standardise FUTURE PLANS Define, Measure, Analyse, Improve, Control Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity. Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis Objective: Identify and verify the root cause(s) of the problem. Output: Root cause(s) identified. Objective: Determine possible solutions that will address the identified root cause(s) of the problem. Action Plan Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Output: Preferred solution or countermeasures Key Steps:-
    • Generate potential solutions
    • Assess potential solutions
    • Select preferred solution
    • Test/Pilot preferred solution
    • Develop implementation plan
    Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated. Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented. Key steps:-
    • Implement preferred solution
    • Verify effectiveness
    • Apply comparative methods if necessary.
    Objective: Prevent the problem and its root cause from recurring. Output: Solution embedded and “routinised” in relevant process, procedures and standards. Key steps:-
    • Standardise the solution (standards & procedures)
    • Document project
    • Implement scorecard
    • Implement controls
    Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning. Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack” Potential Solutions IMPROVE - II: Implement and Check Objective : Define the Problem/Opportunity, Customers, Customer Requirements, and Process. Output: A q uantified picture of the current process performance, problem impact. The process sigma rating. Objective : Select problem/ opportunity theme, select team members Output: Problem/Opportunity selected, Team members selected.
    • Develop business case
    • Develop project team charter
    • Understand Customer Requirements
    • Understand the Process.
    • Determine what to measure
    • Understand the measures
    • Understand Variation
    • Assess measurement system
    • Assess process performance
    Key Steps:- Key Steps:- Team charter Run chart or control chart
    • Analyse data
    • Analyse process
    • Determine potential root causes
    • Hypothesis Testing
    • Verify root causes
    Key Steps:- Key Steps:-
    • Review remaining project opportunities
    • Review other applications
    • Review learnings
    Cause and Effect Diagram (Fishbone) Pareto Chart Checksheet Before After Flowchart Standard procedure D M A C I Flowchart Cause and Effect Diagram
  • 5. Team Formation
  • 6. Team – A Definition
    • Common people, working together to attain uncommon results;
    • A team is a small number of people with complementary skills, who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable.
            • Katzenback, Jon R. and Smith, Douglas K. The Wisdom of Teams, 1995
  • 7. The Components of Teamwork Teamwork Content Task Relationship Process What we do How we do it How to do it How we feel
    • Technical inputs required to progress the problem solving process through to a solution. eg.
      • Technical skills;
      • Technical knowledge;
      • Knowledge of the process and of the business;
      • Data and information;
      • Other specific inputs.
    • The DMIAC process
    • Six Sigma Process Improvement and Problem solving tools and techniques,
    • Statistical techniques.
    • Facilitating group processes;
    • Making the team fun to be a part of;
    • Recognising/appreciating contributions
  • 8. Characteristics of an Effective Team
    • The atmosphere tends to be informal, comfortable, relaxed. There are no obvious tensions;
    • There is a lot of discussion in which virtually everyone participates, but it remains pertinent to the task of the group;
    • The task or objective of the group is well understood and accepted by the members;
    • The members listen to each other;
    • There is disagreement;
    • Most decisions are reached by a kind of consensus, in which it is clear that everybody is in general agreement and willing to go along;
    • Criticism is frequent, frank and relatively comfortable;
    • People are free in expressing their feelings as well as their ideas, both on the problem and on the group's operation;
    • When action is taken, clear assignments are made and accepted;
    • The team leader does not dominate it, nor does the team defer unduly to him/her;
    • The team is self-conscious about its own operations.
  • 9. Stages of Team Development Forming Storming Norming Performing Adjourning Performance Time
  • 10. Stages of Team Development Forming Storming Norming Performing Adjourning Clarify the mission/ purpose of the team; Establish specific objectives and tasks; Identify roles and responsibilities of team members. Get acquainted with one another; Establish a set of ground rules; Recognising that people are checking each other out. Reestablish roles &/or ground rules; Acknowledge & confront conflict by focusing on the facts; Clarify & understand the team's purpose Actively listen to all options; Respond to feelings that emerge or are hidden; Create focus to direct team efforts. Develop decision making process; Be prepared to offer ideas & suggestions; Utilise all resources to support team effort. Support the team's decisions in and outside the team; Give and receive feedback comfortably; Respect individual differences. Actively contribute ideas; Achieve desired objectives; Establish milestones for success. Feel a sense of satisfaction; Develop personal & professional relationships; Find ways to sustain momentum and enthusiasm. Evaluate efforts; Tie up loose ends, discuss future plans; Recognise and reward team efforts. Express thanks and appreciation; Discuss feelings, many may feel sad, depressed; Create a sense of closure, reduce dependency on team Task Relationship Job done! Cooperating and getting involved We do not agree Who are we? Getting to know each other? This is as good as it gets!
  • 11. Launching the Team
    • Form the team;
    • Establish ground rules;
    • Develop a team mission/purpose;
    • Develop a shared team vision;
    • Develop specific team goals, objectives and performance targets.
    From Katzenback, Jon R. and Smith, Douglas K. The Wisdom of Teams, 1995 Team/ Project Charter
  • 12. Skills and Knowledge Required by the Team Six Sigma Process Improvement/ Problem Solving Skills Technical job skills and knowledge of the business. Group process facilitation and interpersonal skills Team Leadership Skills
  • 13. Successful Team Functioning
    • Clarity in team goals;
    • A plan to work to;
    • Clearly defined roles;
    • Clear communication;
    • Beneficial team behaviours;
    • Well-defined decision procedures;
    • Balanced participation;
    • Established group rules;
    • Awareness of the group process;
    • Use of the scientific approach (in Six Sigma DMAIC).
    From Peter Scholtes: The Team Handbook. In Six Sigma, provided by the project/ team charter
  • 14. Where teams and team based efforts have failed, they typically:
    • Lacked management support and resources;
    • Lacked the training or the disciplines to apply "team basics" to their work i.e. no formal process like PDCA or DMAIC;
    • Worked on projects that were considered unimportant and not connected to core business;
    • Were not considered or integrated into long-term organisational plans;
    • Were led by leaders that lacked leadership "know how" and/or had minimal training as team leaders.
          • Adapted from Katzenback, Jon R. and Smith, Douglas K. The Wisdom of Teams, 1995
  • 15. Problem/Opportunity Selection
  • 16. Six Sigma Project Selection Establishing the Business Case
    • The business case establishes the importance of the project to the business in terms of meeting business objectives;
    • Components of a business case:
      • The output unit for the customer of the process, usually the external customer;
      • The primary business measure of the output unit;
      • The baseline of the primary business measure;
      • The gap in the baseline performance with the business objective.
    • The purpose is to establish the need in terms of business objectives - usually expressed in financial terms.
  • 17. Example: Business Case SEFP
    • Output unit for the External Customer
      • Boxes food product delivered to their customers;
    • Primary Business Measure of the output unit:
      • Unit cost of Packaging in $/Box
    • Baseline of the primary business measure:
      • $23.94 per box
    • Business Objective:
      • $22.50 per box
    • Gap = $1.44 per box
  • 18. Develop a Problem/Opportunity Theme Statement
    • The problem/opportunity theme statement provides the initial definition of the problem/opportunity area to be pursued;
    • It is on the basis of the problem/opportunity theme statement that management decide to allocate resources (the problem solving team) and time to develop a project team charter and determine whether the problem/opportunity is worth pursuing.
  • 19. Problem/Opportunity Theme Statement What is the area of concern? What first brought this problem or opportunity to the attention of your business? What impact has this problem already had? What evidence is there that it is a problem worthy of attention? What will happen if the business does not address this problem? Summary problem statement (summarise the above in a concise statement). Project Title:
  • 20. Problem Statements
    • Problem Statements should ideally describe the following:-
      • What is wrong?
      • Where is the problem appearing?
      • How big is the problem? (Quantify)
      • What is the impact of the problem on the business.
    • What problem statement should not do:-
      • State and opinion of what is wrong;
      • Describe the cause of the problem;
      • Assignment blame or responsibility for the problem;
      • Describe a solution;
      • Combine several problems into one.
  • 21. Identifying the problem
    • Developing a problem statement:
      • What is the deviation - should vs actual?
      • What is the symptom?
    • Be specific in what it is and what it is not ;
      • What is it? vs. what is it not?
      • Where is it? vs. where could it also be but is not?
      • When does it occur vs. when does it not occur?
      • How many?
      • How big?
  • 22. Problems as deviations What should be happening What is happening What is happening = What should be happening No Problem! What is happening different to What should be happening = Problem!
  • 23. Problems with Problem Statements Disguised Solutions!
    • We’re experiencing delays in putting sales data in an understandable form.
    • We have to purchase or otherwise obtain the necessary additional equipment.
    • Turnover in the department is 20% higher than company average.
    • Marketing reported a sudden increase in customer complaints about our product.
    • We need to redesign our main product to make it more modern?
    • We must identify the specific training required to correct this performance.
    • Error rates in the past two months are unacceptably high.
    • We need to stream line the ordering process.
  • 24. DMAIC Process Storyboard TEAM FORMATION DEFINE MEASURE ANALYSE IMPROVE - I : Generate Potential Solutions CONTROL - Standardise FUTURE PLANS Define, Measure, Analyse, Improve, Control Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity. Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis Objective: Identify and verify the root cause(s) of the problem. Output: Root cause(s) identified. Objective: Determine possible solutions that will address the identified root cause(s) of the problem. Action Plan Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Output: Preferred solution or countermeasures Key Steps:-
    • Generate potential solutions
    • Assess potential solutions
    • Select preferred solution
    • Test/Pilot preferred solution
    • Develop implementation plan
    Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated. Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented. Key steps:-
    • Implement preferred solution
    • Verify effectiveness
    • Apply comparative methods if necessary.
    Objective: Prevent the problem and its root cause from recurring. Output: Solution embedded and “routinised” in relevant process, procedures and standards. Key steps:-
    • Standardise the solution (standards & procedures)
    • Document project
    • Implement scorecard
    • Implement controls
    Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning. Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack” Potential Solutions IMPROVE - II: Implement and Check Objective : Define the Problem/Opportunity, Customers, Customer Requirements, and Process. Output: A q uantified picture of the current process performance, problem impact. The process sigma rating. Objective : Select problem/ opportunity theme, select team members Output: Problem/Opportunity selected, Team members selected.
    • Develop business case
    • Develop project team charter
    • Understand Customer Requirements
    • Understand the Process.
    • Determine what to measure
    • Understand the measures
    • Understand Variation
    • Assess measurement system
    • Assess process performance
    Key Steps:- Key Steps:- Flowchart Team charter Run chart or control chart
    • Analyse data
    • Analyse process
    • Determine potential root causes
    • Hypothesis Testing
    • Verify root causes
    Key Steps:- Key Steps:-
    • Review remaining project opportunities
    • Review other applications
    • Review learnings
    Cause and Effect Diagram (Fishbone) Pareto Chart Checksheet Before After Flowchart Standard procedure D M A C I Cause and Effect Diagram
  • 25. The Define Stage
    • During the Define Stage, we:
      • Define our problem or opportunity and improvement objectives;
      • Define the customers and their requirements - the Critical-to-Quality issues (CTQ);
      • Define the process that will be affected;
      • Develop a plan for completing the project;
    • Key outputs of the Define Stage:
      • Team Project Charter and Work Plan
      • Measurable Customer Requirements - Customer Requirements Statement
      • Process Map/Process Analysis.
  • 26. Process Green Belt Champion Start Date Expected Financial Impact Telephone Number Organization/Function Target Completion Date Six Sigma Project Team Charter Project Title Objective Problem/Opportunity Definition What is the Problem to be solved or the opportunity this project will exploit. Business Case Team Members Project Scope Customer Benefit Improvement target, impact on Sigma, COQ/COPQ and Customer Satisfaction Schedule What improvement in business performance is expected. $ impact and by when. Who are the team members and key experts to be consulted. Which part of the process will be investigated Who are the final customers. What benefits will they see and what are their most critical requirements. What are key milestone dates for completion of each stage. Define completion Measure completion Analyse completion Improve completion Control completion Project Completion Cost of Waste Reduction Project Jane Verde John Briggs 1-April Reduce net spoilage rate by 50% from 6% to 3%. Estimated Sigma level improvement from 3 to 3.4 Reduction in cost of waste of $253,000 p.a. from a baseline of $506,000. Will result in target processing cost/box being achieved. 634-5789 Packaging Operations 1- October $253,000 Box Packaging Jane Verde (Team Leader), Paul Black, Rachel Cintura, Roland Thompson, Sdravo Krysevic, Giovanni Nero (Black Belt) Box packaging from start of box filling through to placement of product on buyer shelves. The packaging customers for whom we package and deliver product to buyers such as supermarkets and wholesalers. Benefits: competitive costs and more accurate schedule compliance. 20-April 1-June 1-August 1-September 15-September 1-October The cost of waste in box packaging is excessive and causes box packaging operations to run at a loss. The cost of waste needs to be reduced to achieve target cost levels.
  • 27. Key Elements of the Project Team Charter
    • Problem/Opportunity Definition – see previous problem/opportunity theme statement;
    • Objective – quantified objective to be achieved with a specified timeframe – usually expressed in physical units;
    • Business Case – business impact expected from the project, usually expressed in financial terms;
    • Team Members – who will be on the team;
    • Project Scope – what is the project about, what is it not about. Provides focus.
    • Customer Benefits – what impact will it have on the customer.
    • Work Plan/Schedule with Key Milestones defined e.g. approximate time frame for each stage of the DMAIC Process
  • 28. Setting Objectives The SMART Principle
    • S for Specific - Objectives have to be specific and describe exactly what you want to achieve. Need to be able to answer the question “How will I know I have achieved my objective?”
    • M for Measurable - if you cannot measure, you cannot manage. Objectives must be expressed in quantified (numbers) terms.
    • A for Achievable - Objectives need to challenge enough to provide incentive, but not be unattainable.
    • R for Relevant - Objectives must produce something of benefit. Phrase the objectives in results term - what you want to achieve, not how you will achieve it.
    • T for Time Targeted - Objective must always specific a time frame by when they need to be achieved. If you do not know when you want to achieve you objectives by, you will always be on track.
  • 29. Breaking Down “Big” Objectives Example: Transaction Processing Operation Ask why? to go up Ask how? to go down Develop daily schedules for allocating work to people Improve allocation of work to people Simplify work processes Improve Labour Productivity Reduce Rework Reduce costs/transaction by 10%
  • 30. Gantt Chart Working Plan Development Layout project tasks on planning proforma 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Weeks Task People Finalise project charter Develop CR statement Validate CR Statement Develop process map Mile stone – end of define phase Determine measures Collect measures Analyse measures Assess process stability Assess process capability/ sigma Mile stone – end of measure phase Etc.
  • 31. Gantt Chart Working Plan Development Estimate durations and time phase to indicate work sequence 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Weeks Task People Finalise project charter Develop CR statement Validate CR Statement Develop process map Mile stone – end of define phase Determine measures Collect measures Analyse measures Assess process stability Assess process capability/ sigma Mile stone – end of measure phase Etc. … Key Milestones
  • 32. Gantt Chart Working Plan Development Allocate People to Tasks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Weeks Task People Finalise project charter Develop CR statement Validate CR Statement Develop process map Mile stone – end of define phase Determine measures Collect measures Analyse measures Assess process stability Assess process capability/ sigma Mile stone – end of measure phase Etc. … 2 2 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 3 3 2 2 2 2
  • 33. Example:Project Gantt Chart & Resource Histogram on Excel Schedule bars are drawn using the cell pattern function Float drawn using the cell borders function.
  • 34. Gantt Chart Working Plan Implementation Updating Progress 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Weeks Task People Finalise project charter Develop CR statement Validate CR Statement Develop process map Mile stone – end of define phase Determine measures Collect measures Analyse measures Assess process stability Assess process capability/ sigma Mile stone – end of measure phase Etc. … 2 2 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 3 3 2 2 2 2
  • 35. Define the Customer and the Customer Requirements
  • 36. Who are our customers ? A customer is anyone who comes into contact with our work External Customer Supplier Internal Customers
    • External Customers
      • Those outside the organisation who use, buy or are affected by our work.
    • Internal Customers
      • Those within the organisation, who will be affected by our work. The next person in the process, those who may need to add to, respond to or adapt to our work.
  • 37. What is quality ? Toyota or Rolls ? Both the Rolls Royce and the Toyota are consistently suited to their customers' purposes. Which is higher quality?
  • 38. Customer Segmentation
    • Different customers have different requirements;
    • Different customers have different priorities;
    • What Drives Customer Satisfaction
    Perceived Quality Perceived Value + = Customer Satisfaction
  • 39. How Customers See Quality Quality = Perceptions - Expectations Expectations Perceptions Customer Content Process What the customer gets , the actual service or product. The "technical dimension“ or output . How they get it , the process by which the service or product is delivered. The service or “experience”. Perceived Quality Parasuraman, Zeithaml and Berry (1988)
  • 40. Dimensions of Quality
    • Content
    • Performance;
    • Features;
    • Reliability;
    • Conformance;
    • Durability;
    • Serviceability;
    • Aesthetics.
    • Process
    • Tangibles;
    • Reliability;
    • Responsiveness;
    • Competence;
    • Courtesy;
    • Credibility/Trustworthiness;
    • Security;
    • Access;
    • Communication;
    • Understanding the Customer.
  • 41. Content – Detailed Definitions
    • Performance. Does the product or service's primary operating characteristic measure up to the customer's expectation. eg. Is service prompt in a fast food restaurant, does the TV have good picture and sound, does the high-interest account give high interest.
    • Features. Do the characteristics that supplement the basic function measure up to the customer's expectations. eg. Extra "bells and whistles", ability to customise your purchase.
    • Reliability. Once you've bought it will it work for you.
    • Conformance. Does the design conform to established standards and does your purchase conform to the design.
    • Durability. Will it work for you on an on-going basis.
    • Serviceability . Speed, courtesy, competence, ease of repair or ease with which problems are addressed.
    • Aesthetics. Look, feel, sound, taste, smell. Personal judgement a significant factor.
  • 42. Process – Detailed Definitions
    • Tangibles. The physical evidence of service. eg. facilities, appearance of personnel, tools/equipment used to provide the service, physical representations, other customers in the service facility.
    • Reliability. Consistency of performance, the organisation honours its promise and gets it right first time. eg. accuracy of billing, record kept correctly, no time delays.
    • Responsiveness. Willingness and readiness of employees to provide service. Promptness, timely follow-up, calling back quickly.
    • Competence. Skills and knowledge required to perform the service for contact and support personnel.
    • Courtesy. Involves politeness, respect, consideration and friendliness of contact personnel.
    • Credibility. Trustworthiness, believability, honesty, having the customers best interest at heart. Contributing to credibility are company name, reputation, personal characteristics of contact personnel, "degree of hard sell".
    • Security. Freedom from physical danger, financial risk, or doubt about confidentiality.
    • Access. Service is easily accessible, waiting time not excessive, convenient hours of operation, convenient locations.
    • Communication . Keeping the customer informed and listening to them. eg. explaining the service, costs, trade-offs, how problems will be handled.
    • Understanding the Customer. Understanding the customer's needs. eg. learning the customer's specific requirements, providing individualised attention, recognising the regular customer.
  • 43. How Customers form Expectations Past Experience External Communications Marketing Strategies Quality Dimensions Process & Content Competitors Word of Mouth Controllable Expectation Creators Un-controllable Expectation Creators Personal Needs and Preferences Expectations of product or service
  • 44. Managing the Customer Interface Percep -tions Expect -ations Quality Customer Internal Processes Customer interface Service Delivery Perception Disatisfaction Delighted Satisfied
  • 45. Focus on the Process
    • Customers often assume content;
    • Provided the content is in the right “ball park”
      • Customers often cannot tell the difference between good and bad content;
    • Most of what they judge is process;
    • Process is important!
  • 46. The RATER Framework A framework for understanding customer process
    • The RATER framework consolidates the dimensions of service or customer process quality into 5 key themes.
    • Reliability - ability to perform promised service, dependably and accurately;
    • Assurance - Knowledge and courtesy of employees and their ability to inspire trust and confidence;
    • Tangibles - physical facilities, appearance of personnel etc.;
    • Empathy - Providing personal understanding and customer support;
    • Responsiveness - Willingness to help and provide prompt service.
    Parasuraman, Zeithaml and Berry (1988)
  • 47. The RATER Framework
    • The RATER framework provides us with a tool for understanding and specifying the “service” or “process” dimension of the customer requirements;
    • Used for determining what we need to establish service standards for and what these standards should be in managing interactions with customers;
    • Can be used for designing the “operational infrastructure” required to deliver customer service to the required service standards.
      • That is:- Processes, Organisation and Technology
  • 48. Applying the RATER Framework Example: The Room Service Process Guest Calls Room Service, Service Cycle. Quality Dimension Quality Service Standards – Customer Requirements Responsiveness Assurance Tangibles Empathy Phone operator has thorough knowledge of menu and prices There is a menu in the room giving full description of what is available. Specific delivery time stated Effort to comply with any special requests. Prompt service. Reliability Phone answered within five rings, 24 hours a day Customer name used. Prescribed guest treatment procedure carried out with sincerity. Order taken in a courteous manner.
  • 49. Using RATER to Design Service Processes Responsiveness Assurance Tangibles Empathy Reliability Quality Dimension Quality Service Standards Supporting Infrastructure - Processes/People/Technology What does it mean? How do we do it?
  • 50. Managing Perceptions of Quality Responsiveness Assurance Tangibles Empathy Reliability Think of a customer contact point associated with a service you currently provide to a customer(s), how are he following dimensions managed? What could you do? Service : . Quality Dimension Quality Service Standards – Customer Requirements
  • 51. Moments of Truth
    • A moment of truth is any episode in which a customer comes into contact with any aspect of the organisation, however remote, and gets an impression of the quality of its service.
    • When the moments of truth go unmanaged, service quality regresses to mediocrity and the customer experience of the service is poor.
  • 52. Typical Moments of Truth
    • Customer walks in the door;
    • Customer telephones us;
    • Customer receives a bill;
    • Customer makes a special request;
    • Customer discovers a slip-up;
    • etc., etc.;
  • 53. Identifying the “Moments of Truth”
    • Review service critical incident reports to identify the types of things that go wrong;
    • Review compensation/warranty claims etc. to see what the cause was;
    • Understand the service cycle through "service blue printing" (process mapping);
      • Anticipate the likely moments of truth;
  • 54. A Service System Map Understanding the Customer’s View Customer Front Line Assessm't Stamp Settlem't Manager Valuation Document'n Broker
  • 55. The Service Cycle Customer Front Line Assessm't Stamp Settlem't Manager Valuation Document'n Broker
  • 56. Identifying the Critical Moments of Truth Customer Front Line Assessm't Stamp Settlem't Manager Valuation Document'n Broker
  • 57. Listening to the Voice of the Customer
  • 58. Listening to The Voice of the Customer Tools and Techniques
    • Focus groups;
    • Face-to-face interviews;
    • Periodic/regular formal surveys/questionnaires;
    • Customer comment and complaint analysis;
    • Follow-up telephone calls;
    • Critical incident reports produced by front-line staff;
    • Visits to major customers by management and employees;
    • Toll-free telephone number;
    • Follow-up customers who have discontinued dealing with us;
    • Involve customers formally in product development;
    • Mystery shopping.
    • Methods for obtaining feedback on customer expectations, perceptions and satisfaction.
  • 59. Customer Surveys
  • 60. Adapted Questionnaires
    • Adapted questionnaires aim to measure those dimensions relevant to a specific organisation and/or important to a specific customer group(s);
    • They can be designed to have a small number of questions (eg. 10), results in an increased rate of return;
    • Can be flexible in mode of application. eg. Customer can fill out, staff can use in face-to-face or telephone interview;
    • Can be completed by staff and management. Comparison with customer returns can identify improvement priorities, "blind spots" and hidden strengths;
    • Questions need to test the perceptions/expectation “gap”.
  • 61. Using Adapted Questionnaires
    • Questionnaires should also allow customers to give free format feedback, and not restrict them to pre-structured questions;
    • Unstructured customer feedback can provide the spark for service and product extensions, cross-selling and innovation;
    • Use as an ongoing monitoring tool, job-by-job, weekly, monthly - not the “big” annual customer survey.
  • 62. Adapted Questionnaires - Scoring System Expectations not met Expectations met Expectations exceeded Unacceptable quality Satisfactory quality Ideal quality -2 -1 0 1 2 "Much less than expected" "Very disappointed" "As I expected" "Satisfied" "Much more than I expected" Very impressed"
    • No need for paired expectation-perception questions;
    • Use - to + scale corresponding to expectations not met/met;
    • Reduces the number of questions required to extract the same information.
  • 63. Example: Hotel Customer Satisfaction Questionnaire Assume a typical 10 question questionnaire
  • 64. Assessing Questionnaire Results Hotel Example 1 2 3 4 5 6 7 8 9 10 0.9 1.0 0.5 0.3 0.8 0.4 1.2 0.9 0.8 1.1 1.2 1.3 0.9 1.9 1.3 0.8 0.6 1.0 1.2 1.1 -0.3 -0.3 -0.4 -1.6 -0.5 -0.4 +0.6 -0.1 -0.4 0.0 ! : immediate corrective action required, C : check out for any obvious quick fix M : maintain standard, D : apparently delighting, find out why M M C ! C C D M M M Item Guest Ave. Staff Ave. Gap Action
  • 65. Customer Monitoring: A Strategy Overview Major Customer Survey “Not very often” Adapted Questionnaires Weekly, by job, etc. Identify Customer Priorities Weekly Customer Performance Monitors Monitor Questionnaires for relevance, general feedback and innovation opportunities. Redo Major Survey when questions no longer reflect customer priorities.
  • 66. Customer Satisfaction and Loyalty
  • 67. Impact of Customer Satisfaction on Loyalty Using a 5 point customer satisfaction rating. From Heil, G., Service Quality Improvement Seminar, Sydney (1992) Rating Category Would Repurchase Would Recommend Completely Satisfied 90% 96% Somewhat Satisfied 56% 71% Neither Satisfied Nor Dissatisfied 12% 19% Somewhat Dissatisfied 3% 0% Very Dissatisfied 7% 7%
  • 68. Managing Customer Perceptions of Quality
    • Identify the elements of customer expectations you can control;
    • Expectation levels should be set high enough to attract business, but accurately enough to reflect the reality of what is likely to be delivered 99.9% of the time;
    • Focus on improving areas where expectations are low and importance to the customer is high;
      • Strategic gaps in the market that provide viable footholds.
    • Customer expectations will increase with time - so should your ability to meet them. Plan for it!;
    • Surprise is one way to exceed customer expectations. Promise what to expect, deliver more, sometimes surprise customers.
      • E.g. “going the extra mile when it matters.
  • 69. Kano Analysis Low Customer Satisfaction High Customer Satisfaction Done Very Well Not Done or Done Poorly Delighters Breakthrough Customer Needs/Features Dis-satisfiers Basic Requirements Satisfiers Core Competitive Requirements
  • 70. Kano Analysis Low Customer Satisfaction High Customer Satisfaction Done Very Well Not Done of Done Poorly Delighters Breakthrough Customer Needs/Features Dis-satisfiers Basic Requirements Satisfiers Core Competitive Requirements
  • 71. Defining the Customer Requirements and Critical-to-Quality Requirements Customer Value Process/ Service/ Experience Content RATER Analysis Critical Customer Requirements CTQ Requirements Optional KANO Analysis Customer Requirements Statement & Ranking Validate with Customers Interviews, focus groups, questionnaires, complaints & feedback analysis
  • 72. Simple Customer Requirements Statement Customers need to have their food products packaged at a competitive price ($23.50) and delivered to their customers as per their schedule and order quantity manifest (100% compliance).
  • 73. Example: SEFP’s Customer Requirements Statement What is this customer’s major complaint? What issue would they want us to work on? Outputs: Customer: Customer Requirements Measure Importance to Customer Customer Satisfaction Priority Rating 1. Cost competitiveness Boxed product delivered to buyers according to customer manifest. Contract Box Packaging Customers (Importance x Satisfaction) Target 2. Schedule compliance 2.1. On-time delivery/right day/right time. 2.2. Right product delivered 2.3. Product quality to specification 2.4. Right amount/ amount as per manifest. Processing cost $/Box % On time Returns: wrong product % Returns: off-spec product % Order shortfall % Ranking Scheme Importance to customer: 1 = Nice to Have, 2 = Important, 3 = Critical, Must Have Customer Satisfaction: 1 = Very Satisfied, 2 = OK. Could be better, 3 = Unhappy, Must be improved $22.50 97% 95% 99% 99% 3 3* 9* 2 1 2 2 1 2 3 2 6 3 3 9 *Note: customer has not complained about price because we are absorbing difference between market price and actual costs. If customer were charged actual cost we would lose the business. In addition to price, getting the delivery amount right is a Critical-to-Quality issue for the customer.
  • 74. Define the Process
  • 75. Define the Process
    • What process? Identifying the process;
    • Tools for documenting and analysing our processes:
      • SIPOC
      • Process Blocking
      • Top-Down Process Map
      • Process Mapping
      • Process Deployment Chart
      • Process Flow Analysis
  • 76. Identifying Processes
    • Ask the following questions:
      • What are we doing for a customer?
      • What is the first step in the chain of events that lead to meeting the customer need ?
      • What are all the steps in between including the decisions and choices that need to be made?
      • What order or sequence do the steps flow in from start to finish ?
  • 77. Identifying the Customer and what it is we do for them …… Customer Outcome Satisfaction
  • 78. Identifying what it is that tells us we have to do this for them … the “triggering event” which kicks off an operation of the process. Customer Outcome Satisfaction Triggering Event
  • 79. Identify all of the tasks, operations, activities, judgements, decisions, inspections and checks which must be done along the way in order to deliver the required outcome to the customer. Customer Outcome Satisfaction Triggering Event Task or activity required to progress the process Decision, judgement, inspection, check point or choice. Yes/No, OK/Not OK outcome.
  • 80. Link them all up to to show the order in which the process flows. Customer Outcome Satisfaction Triggering Event Task or activity required to progress the process Decision, judgement, inspection or check point. Yes/No, OK/Not OK outcome.
  • 81. This is a process map! Customer Outcome Satisfaction Triggering Event Task or activity required to progress the process Decision, judgement, inspection or check point. Yes/No, OK/Not OK outcome.
  • 82. Process Definition Worksheet Objective : To specifically define the scope of the process being studied Process Name: The Process Starts with: The Process Ends with: The Process includes: The Process excludes: Connecting Process:
  • 83. The SIPOC Model Suppliers - Inputs - Process - Outputs - Customers Suppliers Business or Work Process Inputs Outputs Customer
  • 84. Date SIPOC Analysis Worksheet Process Name Page of Suppliers Inputs Outputs Customers Process Steps
  • 85. Date SIPOC Analysis Worksheet Process Name Page of Suppliers Inputs Outputs Customers Process Steps Purchase Requisition Customer Dept. Receives purchase req. Reviews for completeness Time stamps Assigns to buyer Complete Purchase Requisition Buyer Procurement Process
  • 86. Process Block Diagramming (Process Blocking)
    • Block diagramming a process provides an easy way to construct a "rough cut" view of the process;
    • Block diagramming identifies the major "chunks" in the process and which functions are involved;
    • Block diagramming may provide a suitable level of detail for a high level analysis of the process in many cases.
  • 87. Example of Process Block Diagram Raise Order Data Processing Receive Rejection process Purchasing Process Dispatch & Delivery Start Install & Commission Finish Account Payable Credit Check Warehouse process Official Order picking
  • 88. Top-Down Process Map Order Receival Credit Check Product Sourcing Technician Allocation Etc.
    • Receive fax
    • Raise formal order documentation
    • Data process into system
    • Send to Credit section
    • Preliminary customer checks
    • Obtain credit details from Bank
    • Make credit decision.
    • Receive order details
    • Determine stock availability
    • Issue to stock picker
    • Pick stock
    • Take to Despatch dock
    • Pass order onto Technical
    • Receive order details
    • Identify schedule date
    • Book into scheduling system
    • Allocate technician
  • 89. Process Mapping Symbols Symbol Name Brief Definition Operation or process step Decision Point Document Generated Continuation Point Input/Output Block Flow lines Depending on the level of detail being developed, can be used to denote anything from a simple task, major activity or a whole sub-processes. Used to indicate the process is continued elsewhere on the flow diagram or on another sheet. Point at which a form or report is generated by the process. Point where a decision must be made before any further action can be taken. Optionally used to describe an input or output from a processing block. Use to connect all blocks to display the sequence in which operations are performed. Termination point Used to indicate the start and end of a process.
  • 90. Sample Process Map: Taking a Customer Order Start Change order Yes No An extended oval shape is used to indicate the start or finish of a process. A numbered circle represents a continuation point. Cook's part of process continued page 2. 1 A rectangle represents a processing step A line with an arrowhead indicates flow and direction of the process A diamond shape represents a decision point 1 Continues onto the Cook’s part of the process. Greet customer Take customer's order Repeat order to customer Customer confirms Confirm order on terminal Verbally announce to kitchen Note: Some computer based flow charting packages use to indicate a continuation point on another page, and to indicate a continuation point on the same page. 1 1
  • 91. Process Deployment Chart
    • Re-draw the Process Map laying out each of the process segments in "bands" or "streams" which correspond to the part of the process performed by each functional position in the process;
    • Identifies how the process is deployed through the functional organisational structure – add functions in the order that they are first “touched” by the process;
    • Can highlight process steps performed within functions that may not be apparent from initial process map. Good at highlighting parallel processes;
    • Identifies hand-overs and inefficient "zig-zagging" in the process;
    • Rule of Thumb: Changes that reduce the amount of zig-zagging usually result in improved performance.
  • 92. Process Deployment Chart Customer Sales Credit Dispatch Service Clerk Data Proc. Technical Bank
  • 93. Process Deployment Chart Variation: Service System Map The Line of Visibility Approach Customer Front Line Assessm't Stamp Settlem't Manager Valuation Document'n Broker Line of Visibility Customer Interface Direct Front Line support In-Direct Front Line support
  • 94. A Service System Map The Line of Visibility Approach Customer Front Line Assessm't Stamp Settlem't Manager Valuation Document'n Broker Could be moved to a back office operation Front office
  • 95. Process Complexity Analysis
  • 96. Complexity
    • Concept first put forward by the Hewlett-Packard Company;
    • Complexity is defined as being those extra process steps that are required to deal with external errors (errors generated by factors outside the process) and to recover from internal errors (errors generated by the process).
    • Classified all work into two categories:
      • Real Work
      • Complexity
  • 97. Identifying Complexity
    • To identify complexity, ask the question:
    • "If the process were running perfectly, would this activity be performed ?"
    • YES = Real Work
    • NO = Complexity
  • 98. Two Views of Work Time Time Unavailable for Work Time Available for Real Work Time Unavailable for Work Complexity - Internal Errors Complexity - External Errors Time Available for Real Work Conventional View Complexity View
  • 99. Indicators of High Complexity
    • Lots of work-in-progress materials. Many shelves and interim storage facilities to hold materials.
    • Many people walking from place to place, standing in line waiting for something, standing idle.
    • Work areas that are in disarray. Dusty boxes on floors, bookcases full of dusty binders, desks and walls covered in little scraps of paper serving as reminder notes.
    • People who can give only brief and vague explanations of what they are working on and why it is important.
    • Humorous signs taped to the walls that say things like "You want it when ? Ha ! Ha !" or " A clean desk is a sign of a sick mind"
    • In office areas, piles of processed and unprocessed documents, stored in the work area.
    • Supervisors and managers pacing around the area trying to find out what's going on, ascertain who made a critical mistake and expediting late orders.
  • 100. Indicators of Low Complexity
    • Small amount of work-in-progress. Few shelves and temporary storage areas to hold work.
    • Few people walking around. Most people working at a steady, relaxed pace. No one waiting in line at copy machines, office supplies stores etc.
    • Work areas that are neat. Everything in a department has a place and a use. People using time management systems instead of scraps of paper. Desk tops containing only what the person is working on at the time.
    • People on shop floor or office areas can give complete descriptions of what they do, why they do it, who their customers are, and what's important to those customers.
    • The most common item displayed on department walls are monthly performance graphs, daily control charts, pareto charts of problems.
    • In office areas all documents are received, processed and filed. In-baskets are clean.
    • Supervisors and managers who are relaxed, walking around the area talking with employees, asking them what they are working on, and looking for ways to make their employees' jobs easier and more satisfying.
  • 101. A Simple Retail Purchasing Process The Manager's View Select goods from shelf Read price tag Enter data in register Announce Total Offer to Pay Make change Wrap Goods Leave Customer Clerk
  • 102. The Reality of Complexity caused by Error ! Customer Clerk Supervisor Store person Pick Goods from shelf Is Price Tag OK ? Look up Printed list Explain Difference Accept ? Exit Angry ! Goods Damaged ? Discuss with supervisor Inquire if available from storeroom Discuss situation Bring to Clerk Fetch and Notify Supervisor Apologise to Customer Explain to Customer Available ? No Yes No Yes No Yes No Wrap etc. Yes ? Etc., Etc. ...
  • 103. A “generic” process map Customer
    • Show the task structure and underlying logic;
    • Would be useful to link a process to resources and costs;
    • Process Flow Analysis (PFA) is a technique that allows us to do this. (note: PFA is also referred to as Value Stream Analysis by some).
  • 104. Process Flow Analysis (Also referred to as Value Stream Analysis) Delay Transportation Storage Storing materials or documents in a protected storage area, requiring authorisation for removal. Moving of an object or document from one physical location or work station to another. Temporary storage between operations or waiting for some event which will allow work to continue. Operation A task or activity which results in intentional changes to one or more characteristics. Inspection An examination to determine quality or quantity. Combined Combining two symbols indicates simultaneous activities eg. inspection is conducted at the same time as the operation. Symbol Name Brief Definition
  • 105.
    • D
    Process Flow Analysis Chart Process Name Page of Date Operation Inspection Transport Delay Store Description Estimated Time Quantity Distance Notes D D D D D D D D D D D D D D D D D D D D
  • 106.
    • D
    D D D D D D Process Flow Analysis Chart Process Name Page of Date D Operation Inspection Transport Delay Store Description Estimated Time Quantity Distance Notes Internal Mail Distribution Process 1. Mail sitting in mail room 2. Date Stamp all envelopes 3. Determine addressee 4. Sort in bundles by department 5. Place in out-trays and wait for pick-up 6. Internal Mail pick-up and delivery 7. Placed in department secretary in tray 8. etc., etc. .... 30 min 30 min 10 min 2 hrs 15 min 15 min 300 300 300 15 15 15 1 100m Average distance of all depts. Delivered 8:00am One bundle /Dept. 1 hr D D D D D D D D D D D D D
  • 107. Using PFA with a Process Map Stream A: Dominant flow through the process Stream B: Secondary flow Stream C: Secondary flow
    • Secondary flows are caused by:
      • Variations required to the dominant process to handle different products or variants of the main product through the process;
      • Extra steps required to deal with errors and mistakes in the dominant flow e.g. rework and correction activities.
  • 108. Quantifying the process by using PFA Stream A: Dominant flow through the process Stream B: Secondary flow Stream C: Secondary flow Volume of product or transactions going through stream A (Total Volume) X Time = Hours of Work Generated by the work flow. % % Volume X Time through B Volume X Time through C
  • 109. Quantifying the process by using PFA
    • Apply a volume to the dominant flow and weighted volumes to the secondary flows and calculate the workload generated;
    • From the workload generated, calculate the number of Full Time Equivalents required (FTE);
      • Apply accepted conversion factors from work standards;
    • Convert to number of people required to resource the process by taking into account hours worked and rostering arrangements.
  • 110. Using PFA
    • The full PFA for a process can be set up as a spreadsheet model;
    • This can then be used to test the viability of various opportunities for improvement when selecting what to focus on;
    • Can be used to model proposed changes and simulate the impact on the organisation.
    Review Spreadsheet PFA Model
  • 111. Value-Added and Non-Value Added Analysis
    • Process steps can be categorised as being value added or non-value added;
    • Value-added steps are steps considered essential to the process;
    • Value-added process steps pass the following three tests:
      • Is the step related to doing it right the first time ?
      • Does the step get you one step closer to delivering the product or service to the customer ?
      • Would the customer be willing to pay for the step ?
  • 112. Non-Value Added Work
    • Internal failure: steps related to correcting in-process failures due to errors in prior activities in the process;
    • External failure: steps related to fixing errors in the product or service the customer has found and re-addressed to you;
    • Set-up: Steps that prepare work for subsequent activity;
    • Control/Accuracy: Steps that relate to internal process review and monitoring, appraisal steps in COQ terminology;
    • Moves and transport: Steps related to the physical transports that occur between activities in a process;
    • Delay or wait: Time spent waiting for the next processing step
  • 113. Using PFA for Value Analysis Value Added Non - Value Added First pass through the process If done as rework, internal or external failure All Non - Value Added
  • 114. Tollgate Review: Define Phase
  • 115. Toll Gate Review: Define
    • Project has been confirmed as a valid improvement priority and is supported by management.
    • A business case has been prepared, showing the potential business impact of this project in financial terms.
    • A problem statement has been prepared and agreed.
    • Objectives defining the results we are expecting from this project have been stated in the form of measurable targets.
    • A full Project Team Charter has been prepared including a preliminary plan/schedule.
    • The charter has been reviewed with the project sponsor and their support has been confirmed.
    • The primary customer and their key requirements have been identified.
    • The process concerned has been documented in the form of a process map.
  • 116. Conclusion of Define Stage Module

×