Define Phase Jimmie Carr OPERMGT 380


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  • PowerPoint Training Presentation Due: October 8, 2003
  • Initially, you need to ensure that you have a solid baseline performance measure for all key requirements. The team leader need to look for information that will help identify design opportunities, both inside the process and outside the organization. The Voice of the Customers (VOC) should be uppermost in his mind, and his focus should be improving or changing the process for the benefit of the customers.
  • The Charter is a collection of documents that provide purpose and motivation for a Six Sigma team to do its work. It includes the following; Business case is a sentence or two that describes why this project should be done and why is has priority. b) Problem statement is a short measurable statement about the problem (indicate how long problem has been going on). c) Project scope refers to what the team should focus on, but more importantly what the team should try to avoid. d) Goals and objectives are what the team should strive to achieve in the 4-6 months they exist. Typically, a first wave Six Sigma team should aim at improving the problem by 50 percent. e) Milestones indicate where the team should be in the process and when (Define and Measure should take no longer than 8 weeks). f) Roles and responsibilities-first there is the Champion (usually the process owner who guides the team strategically, but is not a full-time team member). Second, there is the team leader, who is called the Black Belt, and is responsible for day-to-day activities. The Master Black Belt is equivalent to an internal consultant, and assist the team with technical aspects of their work. The rest of the team are called team members and will conduct the actual work of the project.
  • The Problem Statement need to be as specific as possible to aid in understanding. Also, the team should focus on actual problems and not assumptions. At the end of the Define Phase the team can update and expand the Project Charter. The charter will be used for Define, Measure, Analyze, Improve, and Control steps (DMAIC) of the Six-Sigma process.
  • An assumption of the Six Sigma process is that you don’t know the cause of the problem a the beginning of the project. This is one reason why you shouldn’t use the Problem Statement for speculations or guesses about what the problem might be. The goals/objectives shouldn’t lead to outrageous expectations. The Project Charter will change as the team gather more data to find out more about the problem that exists.
  • The business case states the importance of the project in relation to other strategic goals of the company. It should also give the consequences if the project isn’t pursued. The consequences could be a lost of customers or potentially profits due to the team/company not fulfilling the needs of its customers. The business case needs to be defined by an executive that’s directly responsible for the product/service that the customers are dissatisfied with. This would also be the person with the most at stake or the most to lose. The business case should be prepared so that it will help sway management to allocate resources to support the team’s efforts to find a reasonable solution.
  • The Problem Statement does not describe the problem or point fingers at someone or other areas within the organization. You’re also trying to determine the conditions that caused the problem in the first place, and how long has the problem existed. Is there a way to replicate the conditions that caused the problem to exist? How is this problem affecting your customers and your organization? Additionally, you need to determine if there are business opportunities that could be lost if the problem isn’t resolved.
  • The scope set the boundaries of what is included or excluded from the charter. You’re looking for a balance when defining the project between too narrow and too broad. The scope should be viewed as a contract between the team and the business affected by the project. If not the business will tend to expand the scope through the project, this is known as scope creep.(Ehrlich, pg 7).
  • The goal statement should describe the expected outcomes and results of the project. The goal statement could change dependent upon the team’s understanding of the Voice of the customer. The team uses the SMART acronym to determine if the goal statement is well written. (Ehrlich, pg 5) A strong, well-written goal statement can help a team to focus on accomplishing its overall mission.
  • The milestones also set the time limits for the other steps in the DMAIC process. For example, the Define and Measure should take no more than 8 weeks of the project. Analysis should take no more than 6 weeks after completion of the Measure phase. Improvements should be implemented in the next 12 weeks. As a result of these milestones the team should be ready to implement Control at the end of the 12 weeks devoted to Improvement implementation. (pg 18, Eckes)
  • This step of the Define Phase addresses the customers needs and requirements because you’re listening to the voice of the customer(s). The project focuses on the concerns of the customer and works to improve each area of concern. For each need of the customer that you provide for, there are requirements for the need that must be met. The requirements are the characteristics of the need that determine whether the customer is happy with the product or service provided. Overall, happy customers can improve the company’s overall financial bottom line. They can be a source of indirect business if this happiness with your product/service lead them to tell others how satisfied they are, and will continue to do business with your company based on your responsiveness to address their concerns.
  • The High-Level Process Map is a series of steps that information is feed into. At each of these steps the team tries to add value, and produce an output. The high-level process map is created based on a combination of the following; suppliers, inputs, process, output, and customers. Sometimes this process is referred to as SIPOC. At the start of the map development the team determines who the customers and suppliers are to gain a better insight into the perceived problem with the product/service. The steps that the team agrees on are the steps between the start and stop in the process.
  • The Champion is not a full-time team member, and he is usually the owner of the process that the customers are having problems with. He assist in picking the other team members, and when the team is assembled he offers strategic guidance. The Champion also helps to remove obstacles that could potentially keep the team from doing its job. The Black Belt is actually the team leader, and is responsible for the team’s day-to-day activities. These activities may include keeping the team on track/schedule, and writing an agenda for the next upcoming team meeting. Sometimes there are other responsibilities within an organization that the team leader must address. If his focus is on the additional duties then he is called a Green Belt. There is also another member of the team that work with the team on an as needed basis, and he helps with the technical direction of the team. This person is known as a Master Black Belt. The rest of the group is called team members and they should have a strong understanding of the problem because they will be doing the work on the project. The correct composition of the team is critical to the success of the project. The size of the team should be limited to no more than seven (excludes the team leader).
  • These steps in the Define Phase are similar to passing through tollgates on a turnpike. In order for you to reach your destination you have to pass through each tollgate in sequence or as you reach them. The tollgates of the Define Phase must be passed through in sequence in order to advance to the Measurement Phase of Six Sigma and subsequent steps/phases.
  • GE’s focus from the inside to the outside delighted customers. Customers have now become the center of GE’s attention because they expect a quality product/service. As we know quality can be defined in several ways, but we will use performance, reliability, competitive prices/designs, service and on-time delivery as GE’s definition. The point is that if your business isn’t willing to make sacrifices to maintain a strong customer relationship another business will.
  • ITT is an Engineering company based in White Plains, New York. The company have a local recognition program that seeks to recognize and reward project teams for their accomplishments and knowledge sharing.
  • The team needs to give equal attention to service and outputs requirements to help benefit their customers. A company with Six-Sigma products but lousy service and customer relations may survive, but only until the customers find a better supplier (pg 6, Pande, Neuman, Cavanagh). If your requirements aren’t quite clear at first continue to focus on measurable requirements to help give you an understanding of your customers and as a way to measure your success.
  • The main point is to ensure that the team leader keep an open mind as to what the customers really want. Customer data can be contradictory at times, and may challenge some of your beliefs. Your team has taken the time to Define the requirements and you should check/measure how well you’re meeting your goals/objectives.
  • These are typically the most important questions asked by companies before deciding whether or not to implement the Define Phase. Costs can be staggering if not kept under control. Companies need to look exactly where they need help in their business and decide if Six Sigma will be a move to fix things. Most importantly, companies need to look if their corporate culture. The bottom line is that it’s all about the customers and the quality of service that you provide to them.
  • Overall, the Define Phase is structured and disciplined in the problem-solving approach. A quality process is required for a quality outcome and this is one reason why the project team needs to be disciplined in making decisions based on data. As a result there will be a higher consistency of outcomes and the project results will be sound.
  • Define Phase Jimmie Carr OPERMGT 380

    1. 1. Define Phase <ul><li>Jimmie Carr </li></ul><ul><li>OPERMGT 380 </li></ul><ul><li>Boise State University </li></ul>
    2. 2. Overview <ul><li>Define Phase defined </li></ul><ul><li>Define Tollgates </li></ul><ul><li>Companies using the Define Phase </li></ul><ul><li>An exercise opportunity </li></ul><ul><li>Summary </li></ul>
    3. 3. Define Phase Defined <ul><li>Project charter is created </li></ul><ul><li>Voice of the Customer (VOC) </li></ul><ul><li>High-Level Map of current process is created </li></ul><ul><li>Project Team assembled </li></ul>
    4. 4. Project Charter Includes <ul><li>The business case </li></ul><ul><li>The problem statement </li></ul><ul><li>Project scope </li></ul><ul><li>Goals statement </li></ul><ul><li>Milestones </li></ul><ul><li>Roles and responsibilities of the project team </li></ul>
    5. 5. Project Charter Do’s <ul><li>Make problem statement specific </li></ul><ul><li>Focus on observable symptoms </li></ul><ul><li>Use Charter to set direction, goals </li></ul><ul><li>Address project questions early </li></ul>
    6. 6. Project Charter Don’ts <ul><li>Assign blame in problem statement </li></ul><ul><li>Set non-obtainable goals </li></ul><ul><li>Make the charter wordy </li></ul>
    7. 7. Business Case <ul><li>Given to the team by the Leadership Council </li></ul><ul><li>Gives a broad definition of the issue </li></ul><ul><li>Gives rationale why this project is a key business priority </li></ul><ul><li>Compelling reason to commit resources </li></ul>
    8. 8. Problem Statement <ul><li>Concise statement of the problem </li></ul><ul><li>Under what circumstances does problem occur </li></ul><ul><li>Extent of problem </li></ul><ul><li>Impact of problem </li></ul><ul><li>Opportunity if problem is eliminated </li></ul>
    9. 9. Problem Statement Form
    10. 10. Project Scope <ul><li>An important element in the charter </li></ul><ul><li>Sets boundaries on what’s included/excluded </li></ul><ul><li>Seek a balance </li></ul><ul><li>Viewed as a contract to avoid scope creep </li></ul>
    11. 11. Goal Statement <ul><li>Specific </li></ul><ul><li>Measurable </li></ul><ul><li>Attainable </li></ul><ul><li>Relevant </li></ul><ul><li>Time bound </li></ul>
    12. 12. Milestones <ul><li>Indicates when and where the team should be in the process </li></ul><ul><li>Set limits for other steps in DMAIC process </li></ul>
    13. 13. Voice of the Customer (VOC) <ul><li>Recipient of product/service targeted for improvement </li></ul><ul><li>Delivery time </li></ul><ul><li>Accuracy </li></ul>
    14. 14. High-Level Process Map <ul><li>Name the process </li></ul><ul><li>Establish start and stop points </li></ul><ul><li>Determine the output </li></ul><ul><li>Determine the customers </li></ul><ul><li>Determine the supplier </li></ul><ul><li>Determine the input </li></ul><ul><li>Agree on five to seven high level steps </li></ul>
    15. 15. Symbols Used to Create A Process Map <ul><li>Start/stop of a Process </li></ul><ul><li>Decision point </li></ul><ul><li>Step in the Process </li></ul><ul><li>Direction in the Process </li></ul>
    16. 16. Project Team <ul><li>Champion (process owner) </li></ul><ul><li>-strategically guides team </li></ul><ul><li>-assist in picking the team </li></ul><ul><li>Team Leader-Black Belt </li></ul><ul><li>Team Members </li></ul><ul><li>Master Black Belt </li></ul>
    17. 17. Tollgates <ul><li>Steps of the Define Phase </li></ul><ul><li>Similar to being on a turnpike </li></ul><ul><li>Stop to pay toll </li></ul><ul><li>Proceed to the next tollgate </li></ul><ul><li>Continue on the highway of quality </li></ul><ul><li>Improve sigma performance </li></ul>
    18. 18. General Electric (GE) <ul><li>2000 was a record breaking year </li></ul><ul><li>Revenue rose 16% to $129.9 billion-a record </li></ul><ul><li>75% of GE’s top businesses posted double-digit earning increases </li></ul><ul><li>Six Sigma turned the company’s focus from inside to outside </li></ul>
    19. 19. ITT <ul><li>Uses Value Based Six Sigma (VBSS) </li></ul><ul><li>2001-$135 million in cost savings </li></ul><ul><li>Linked VBSS to the company’s strategic plan </li></ul><ul><li>Go for quick wins </li></ul><ul><li>Match project and resources </li></ul>
    20. 20. Define Phase Do’s <ul><li>Give equal attention to Service and Output requirements </li></ul><ul><li>Create clear goals and objectives </li></ul><ul><li>Measurable requirements are essential to understanding your customers </li></ul>
    21. 21. Define Phase Don’ts <ul><li>Fail to measure your performance against customer requirements </li></ul><ul><li>Close your mind to new information </li></ul><ul><li>Make new requirements your standard operating procedures (SOP) </li></ul>
    22. 22. Training Exercise <ul><li>Break down into 3-5 people per group to determine there are issues within your organization that you could use the Define Phase on. </li></ul><ul><li>How long did the problem exist? </li></ul><ul><li>How did the problem begin? </li></ul><ul><li>Will we need a project team to work on the problem? </li></ul><ul><li>What will be the savings if a solution is found? </li></ul><ul><li>What will be the damage if a solution isn’t found? </li></ul>
    23. 23. Summary <ul><li>Define Phase is structured </li></ul><ul><li>Efficient and effective way of achieving a difficult undertaking </li></ul><ul><li>Higher consistency of outcomes </li></ul><ul><li>Project results as sound </li></ul>
    24. 24. Applying the Change <ul><li>The most general lesson to be learned from the more successful cases is that the change process goes through a series of phases that, in total, usually require a considerable length of time. Skipping steps creates only the illusion of speed and never produces a satisfying result. …But just as a relatively simple vision is needed to guide people through a major change, so a vision of the change process can reduce the error rate. And fewer errors can spell the difference between success and failure. </li></ul><ul><li>-------James Kotter, “Why Transformation Efforts Fail,” Harvard Business Review, March-April, 1995 </li></ul>
    25. 25. Bibliography <ul><li>Pande, Peter S., Neuman, Robert P., and Cavanagh, Roland R. The Six </li></ul><ul><li>Sigma Way, Team Fieldbook , 2002. </li></ul><ul><li>Pande, Peter S., Neuman, Robert P., and Cavanagh, Roland R. The Six </li></ul><ul><li>Sigma Way, 2000. </li></ul><ul><li>Ehrlich, Betsi Harris, Transactional Six Sigma and Loan Servicing; </li></ul><ul><li>Leveraging Manufacturing Concepts to Achieve World-Class Service, </li></ul><ul><li>1998. </li></ul><ul><li>Eckes, George, Six Sigma for Everyone , 2003 </li></ul>
    26. 26. Bibliography (cont) <ul><li>Welch, John, GE Annual 2000 Letter </li></ul><ul><li>McClenahen, John, Industry Week,Publication 4/1/02 </li></ul>