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Define Phase


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  • 3. IX S IGMA S D EPARTMENT OF S TATISTICS a highly structured strategy for acquiring, assessing, and applying customer, competitor, and enterprise intelligence for the purposes of product, system or enterprise innovation and design.
  • 4. The Villain  level DPMO CP 3 2 308,537 Not Applicable 3 66,807 25%-40% of sales 4 6,210 15%-25% of sales 5 233 5%-15% of sales 6 3.4 < 1% of sales Each sigma shift provides a 10% net income improvement Cost of Poorly Performing Processes (CP 3 ) Why is Six Sigma Important?
  • 5. S ix S igma I nnovation S tructured P roblem- S olving with DMAIC : The Analytic Heartbeat of Six Sigma
  • 6. The DMAIC Model Define Control Measure Improve Analyze Voice of the Customer Institutionalization
  • 7. Six Sigma Road Map: R DMAIC SI Breakthrough Stage Strategy Phase Objective Identification Recognize Identify Key Business Define Issues Characterization Measure Understand Current Analyze Performance Levels Optimization Improve Achieve Breakthrough Control Improvement Institutionalization Standardize Transform How Day-to Integrate Day Business is Conducted Breakthrough Strategy Black Belt Projects
  • 8. D efine C ontrol I mprove A nalyze M easure S ix S igma I nnovation & the D MAIC Algorithm D efine the problem and customer requirements. M easure defect rates and document the process in its current incarnation. A nalyze process data and determine the capability of the process. I mprove the process and remove defect causes. C ontrol process performance and ensure that defects do not recur.
  • 9. S ix S igma P rojects B egin with a D etailed A ssessment of C ustomer N eeds DEFINE : A . Identify project CTQs: what does the customer think is essential? B. The Team Charter represents the business case for the project. C . Define and build a process map that relates measurable internal processes to customer needs. These will now be addressed in greater detail
  • 10. Define : A. Identify project CTQs: what does the customer think is essential? Voice of the Customer (VOC)
    • That which is critical to the quality of the process according to your customer.
    • VOC tools :
      • Surveys
      • Focus Groups
      • Interviews
      • Customer Complaints
  • 11.
    • Advantages :
    • Lower cost approach
    • Phone response rate 70-90%
    • Mail surveys require least amount of trained resources for execution
    • Can produce faster results
    • Disadvantages :
    • Mail surveys can get incomplete results, skipped questions, unclear understanding
    • Mail surveys 20-30% response rate
    • Phone surveys: interviewer has influential role, can lead interviewee, producing undesirable results
    • Advantages :
    • Group interaction generates information
    • More in-depth responses
    • Excellent for getting CTQ definitions
    • Can cover more complex questions or qualitative data
    • Disadvantages :
    • Learning’s only apply to those asked, difficult to generalize
    • Data collected typically qualitative vs. quantitative
    • Can generate too much anecdotal information
    Focus Groups Surveys
  • 12.
    • Advantages :
    • Specific feedback
    • Provides opportunity to respond appropriately to dissatisfied customer
    • Disadvantages :
    • Probably not adequate sample size
    • May lead to changing process inappropriately based on 1-2 data points
    • Advantages :
    • Can tackle complex questions and a wide range of information
    • Allows use of visual aids
    • Good choice when people won’t respond willingly and/or accurately by phone/mail
    • Disadvantages :
    • Long cycle time to complete
    • Requires trained, experienced interviewers
    Customer Complaints Interviews
  • 13. S urvey D evelopment I nformation
      • What do I need to know when this study is complete?
      • What is my budget?
      • What information will the survey provide that cannot be obtained elsewhere?
      • How much time do I have to complete the study?
      • Who will be surveyed and how do I reach these people?
  • 14. Survey Development Steps
    • Review survey objectives.
    • Determine appropriate sample.
    • Identify specific areas of desired information.
    • Write draft questions and determine measurement scales.
    • Determine coding requirements.
    • Design the survey.
    • Pilot the survey–both the individual questions as well as the total survey against the objectives.
    • Revise and finalize.
    Creation of Electronic Surveys or
  • 15.
    • Define :
    • A. Identify project CTQs: what does the customer think is essential?
    • Who is the customer and what do they want? This may be derived from:
    • Business Goals; Complaint Information; Customer Surveys or Focus Groups;
    • Benchmarking Data; Executive-Level Discussions; or Job-Specific Discussions.
    • We need a “ Process / Product Drill-Down Tree ”
    • Y = f(X 1 , X 2 , …)
    • “ Big Y” is a function of X 1 , X 2 , … where the X’s are internal process characteristics
    • or ‘CTQs’ that can be controlled. CTQs represent customer desired outcomes.
    • Drill Down Trees Integrate Customer CTQs and Business Strategy.
    • In this drill down tree the “Big Y” is decomposed into “little y’s” that are subprocesses of Y.
    • This “drill down” continues through DEFINE and MEASURE. The X’s are part of ANALYZE.
  • 16. Process/Product Drill Down Tree Black Belts/Green Belt work on removing defects on selected CTQ’s by improving processes. Black Belts/Green Belt work on removing defects on selected CTQ’s by improving processes. • Customer requirements (customer CTQ’s) • Process requirements (process CTQ’s) How Customer CTQ’s Become Project CTQ’s Important To Our Customer Sub - Process/ Service B Sub - Process/ Service C Product/Process/Service Single Cell Projects Process - Based Projects CTQ Projects Controllable By Us Define product and/or process tree and identify product and process CTQ’s Define product and/or process tree and identify product and process CTQ’s Sub - Process/ Service A Process 4 Process 1 Process 2 Process 3 CTQ 9 CTQ 1 CTQ 2 CTQ 3 CTQ 4 CTQ 5 CTQ 6 CTQ 7 CTQ 8
  • 17. D efine : B. The Team Charter represents the business case for the project. a. Define the BUSINESS CASE for the project – that is, what is its importance? What are the consequences of NOT doing the project? What are the priorities? How does it fit with business initiatives of the organization? b. Provide a problem statement that describes the opportunities for improvement and a goal statement that defines the improvement objective. Problem Statement + Goal Statement = Team Focus c. Define the Process – place appropriate boundaries on the process, that is its limitations and constraints. d. Select the team – this should be carefully done and needs-based. Also necessary is determination of the role, responsibilities and expectations of each team member.
  • 18. SMART
    • Problem & Goal Statements Should be:
    • S pecific
    • M easurable
    • A ttainable
    • R elevant
    • T ime-Bound
  • 19. Define: The Team Charter Business Name: Project Name: Project Charter:   Prepared by: _____________ Version: ___________ Date: ________ ` Champion: _____________ Process Owner: _____________________ Team Leader: ____________ Coach: ___________________________   Approval Signatures Champion: ______________ Process Owner: _____________________ Other Stakeholder : ________ Other Stakeholder:___________________ as needed as needed
  • 20. Define: The Team Charter Table of Contents   1.   EXECUTIVE SUMMARY …………………………………………………3 2.   PROJECT OBJECTIVES…………………………………………………3 3.   PROJECT SCOPE ……………………………………………………..…3 4.   BUSINESS CASE …………………………………………………………3 5.   PROJECT ORGANIZATION ……………………………………………3 6.   SCHEDULES……………………………………………………………….4 7.   COMMUNICATION PLAN ……………………………………………...4 8.   PROJECT CONTROL PROCEDURES ……………………...…………4 9.   PROJECT ASSUMPTIONS ……………………………..………………4 10. CONFLICT RESOLUTION ………………………………………………. 5
  • 21. Define: The Team Charter 1.0 EXECUTIVE SUMMARY   Provide a brief description of the project, its goals and objectives. This is the “ elevator speech” for the project.   2.0 PROJECT OBJECTIVES   Describe what the project hopes to accomplish. If this project’s purpose is to design a new product or service, describe same. At a high-level, describe the potential customers of the new product/service and their needs. Include goals or targets for the new product or service (customer and business related). If the project’s purpose is to redesign an existing product, service or process, develop problem and goal statements. Attempt to quantify the “pain” and associated goals using data.
  • 22. Define: The Team Charter 3.0 Project Scope Describe the project deliverables (i.e. a new product or redesigned and implemented business process) and the boundaries of the project. This is a further definition of the what is to be designed / redesigned. Scope aspects to consider include products / services and/or processes to be designed / redesigned, facilities to be employed, organizational structures or labor agreements, compensation plans, and use of existing hardware/ software platforms. As the project progresses, the scope may be refined via a Multi-Generational Product / Process Plan (MGPP) . Include the MGPP here. 4.0 Business Case Describe why this particular project is important to the business. This may include a description of a business opportunity , and / or a cost/benefit analysis . This latter analysis may include tangible and intangible benefits and costs. Assumptions made should be clearly documented. This section may also include a risk analysis, focused on factors that could act as barriers to the projects success. The risk analysis should identify the risk factor , and mitigation strategies identified to manage the risks.
  • 23. Eight Steps for Establishing Project Boundaries
    • Map your process
      • Map the process at it works today (as is).
      • Map the informal processes, even if there is no formal, uniform process in use.
    • Determine where in the process the CTQ’s can be most seriously affected
      • Use a detailed flowchart
      • Estimate which steps contain the most variability
    • Evaluate which CTQ’s have the greatest opportunity for improvement
      • Consider available resources
      • Compare variation in the processes with the various CTQ’s
      • Emphasize process steps which are under the control of the team conducting the project
    • Define the project to improve the CTQ’s you have selected
      • Define the defect to be attacked
  • 24. Define: The Team Charter 5.0 PROJECT ORGANIZATION   Define how the project is to be run. This includes who will work on the project, roles & responsibilities of project members and supporting staff (i.e. Master Black Belts) and reporting relationships to the champion/management. A project organization chart and roles and responsibilities matrix may be shown here. The matrix should include each role, the role’s responsibilities, the business resource(s) assigned to the role and the level of commitment for each resource.    6.0 SCHEDULES & RESOURCES   Describe when the project should be completed and the key project milestones. Initially, the project completion date (define what “completion” means) and milestones based on the steps of DMADV may be included. As the project is better defined, more detailed project plans may be included in Gantt / PERT format. The DMADV Tollgates may be used to develop a work-breakdown structure for the project. Based on the resource commitments identified in Section 5.0 of the Charter, the schedule can be resource loaded (either to determine the “finish date” based on available resources, or to identify required resources based on a targeted completion date).
  • 25. Define: The Team Charter 7.0 COMMUNICATION PLAN Define how the project team will communicate with business leaders, staff and other stakeholders. A table such as shown below is an easy way of summarizing the communication plan. Included are examples of typical communication types: Design Review Meeting Project Team As Needed Various Design Outputs Project Phase Meeting Project Manager End of each Phase Champion / Review Board Phase Completion E-Mail Project Manager Weekly Project Team Task Status Delivery Mechanism Responsibility Frequency Audience Communication Type
  • 26. Define: The Team Charter 8.0 PROJECT CONTROL PROCEDURES: Describe how the project will be controlled and managed. Depending on the project’s scope, risk and perhaps regulatory issues, the extent of the necessary control processes will vary. Some control processes to consider include: Quality Assurance Plan Test Plan Progress Control Change Control Issue Resolution Problem Reporting & Resolution Risk Management Change Acceleration Processes   9.0 PROJECT ASSUMPTIONS: This section should document any assumptions that have not previously been covered and that are important to the success of the project. These may include market or organizational conditions, availability of resources or others. 10.0 CONFLICT RESOLUTION: Describe and Contractually Commit to the expectations of each team member, deliverables required of each member, dates and formats of those deliverables acceptable and unacceptable means and forms of communication, and agreed upon means of resolving project-related conflicts among team members.
  • 27. Project Scope
    • On what process will the team focus on?
    • What are the boundaries of the process we are to improve? Start point? Stop point?
    • What resources are available to the team?
    • What (if anything) is out-of-bounds for the team?
    • Under what (if any) constraints must the team work?
    • What is the time commitment expected of team members?
    • What are the advantages to each team member for the time commitment?
  • 28. E ight S teps for E stablishing P roject B oundaries
    • Identify the customer
      • Who receives the process output?
        • (May be an internal or external customer)
    • Define customer’s expectations and needs
      • Ask the customer
      • Think like the customer
      • Rank or prioritize the expectations
    • Clearly specify your deliverables tied to those expectations
      • What are the process outputs? (Tangible and intangible deliverables)
      • Rank or prioritize the deliverables
      • Rank your confidence in meeting each deliverable
    • Identify CTQ’s for those deliverables
      • What are the specific, measurable attributes that are most critical in the deliverables?
      • Select those attributes that have the greatest impact on customer satisfaction.
  • 29. T he SIPOC M odel Suppliers Customers Inputs Outputs Process Steps Inform Loop
  • 30. Six Sigma COPIS M odel C ustomers S uppliers O utputs I nputs P rocess Steps The Voice of the Customer (VOC) is aggressively sought and rigorously evaluated and used to determine needed outputs and hence the optimal process configuration needed to yield those outputs and their necessary inputs for which the best suppliers are identified and allied with. From Concept to Market: the Voice of the Customer How does Six Sigma Work?
  • 31.
    • Define :
    • C. Define and build a process map that relates measurable internal
    • processes to customer needs. ( COPIS )
    • The High-Level Process Map
    • Displays the relationship between the customer and the process;
    • Identifies key inputs; and c. Identifies key customer requirements.
    • C – customer’s key requirements; O – outputs; P – process steps; I – Inputs; S – suppliers
    C ustomers S uppliers O utputs I nputs P rocess Steps
  • 32.
    • Process Mapping: Top-Down Flowchart – The “What’s”
    • List the fundamental process steps. Limit your list to about five major steps.
    • Write these down, in the order they occur, from left to right across the top of a
    • writing surface.
    • c. Under each major step, list – in the order of occurrence, the major sub-processes
    • that compose the major step (again, only five or six of these).
    A B C D E A.1 A.2 A.3 A.4 B.1 B.2 C.1 C.2 C.3 E.1 E.2 E.3 D.1 D.2 D.3 D.4
  • 33.
    • Process Mapping:
    • Deployment Flowchart – “What’s” & “Who’s” –
    • List the fundamental process steps in the order they occur.
    • Across the top of your writing surface, list the names of the people
    • or organizations involved in the process.
    • Beneath the name(s) of those responsible for the first step, draw a
      • box and list the step in that box.
    • If any other entities assist or advise those with primary responsibility
    • for that step, list the entity name and draw an oval around it. Connect
    • these ovals to the box.
    • e. Repeat this process for the second and subsequent steps.
    • In this way we will have both the “what” and “who” listed.
  • 34. Deployment Flowchart Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Step A Step B Step C Step D Step E Step F
  • 35. Process Mapping: Detailed Flowchart 1. Draw the first symbol and record a description of the process step therein. 2. Do similarly with all remaining process steps, connecting these to indicate process flow. 3. Stop when you have mapped the (portion of the) process of interest. Each symbol should represent only one action or one “yes/no” decision. Operation Measurement Input / Output Decision Transportation Start / Stop Start / Stop Operation Document Delay Operation Decision Yes No Operation No Decision Yes Operation Decision No Yes Yes Storage