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Six Sigma Simplified
                      for Service Organizations
                       Best Practice Approach
The steps to develop a successful Six Sigma Simplified Process for Service Organizations are:




                                          FOCUS

                              HONOR                IMRPOVE

                                         SUSTAIN




                                  FOCUS
   Focus on developing a Master Improvement Story for your organization
             which aligns multiple teams (See example below).

                                  IMPROVE
Identify and eliminate root causes of organizational problems in time, defects
or cost. Old Six Sigma wisdom: 4% of your business generates over 50% of
                     rework - start to tackle the 4% first.

                                  SUSTAIN
  Define and stabilize the improvement by developing Line Graphs until you
      have achieved Predictability and Consistency as basis for Process
                                Improvement.

                                      HONOR
                     Purpose: To recognize, review, and refocus
SIX SIGMA SCORECARD
                  MASTER IMPROVEMENT STORY
               Long-Term    Short-Term Measures Targets
                                Increase
                                               Frequency of
VISION         Customer         Applicant
                               Acceptance
                                                   Sale
                                                                % increase


                                 Increase
                                                 Customer
                                Customer                        % increase
                                                Satisfaction
                               Satisfaction

                             Increase Hiring
                                                “Perfect Fit”
                              “Perfect Fit”                     % increase
                                               Achieved Rate
                                  Rate


                Financial     Increase Task      # of Task
                                                                % increase
                                Order Size         Order
                 Growth

                                Increase
                                               # of Customers   % increase
                               Customers


                                Increase
                                                 Frequency      % increase
                               Frequency



                              Reduce Cycle
Six Sigma’s     Quality          Time
                                                Cycle Time      % reduction

Operational
Focus                                            # and % of
                             Reduce Defects                     % reduction
Drives                                            Defects

Financial
Growth and                   Reduce Costs
                                               Cost of Waste
                                                                % reduction
                                                 & Rework
Customer
Satisfaction
               Learning &    Increase Core
                                                  Training      % increase
                Growth           Skills


                              Increase Opt
                                                Opt System
                                Systems                         % reduction
                                               Unavailability
                               Availability
ROADMAP to
          LEAN SIX SIGMA SUCCESS
     for Service Organizations
SET BIG GOALS
After you have identifed your key measurements and Early Warning
Indicators for each of these goals, go ahead and SET BIG GOALS like 50% less
defects in processing jobs. (You get 50% more bigger Ideas, forget the 10% here!)

DON’T DELEGATE
Only start team approach with outlock of success and after you have already
valuable Data collected and available

KEY SIX SIGMA TOOLS
Use Line Graphs, Pareto/Fishbone and Cause and Effect Charts to focus and
analyze problems. Measure daily, weekly or monthly, where and what occurs

Develop your “Yardsticks” your EARLY WARNING INDICATORS (Example below)

 “QUALITY”                             “PROCESS”
 Requirement Indicator                 Early Warning Indicator
 Percent of Defective                  Amount of rework per step
                                       Number of defects per step
 Missed Committments                   Time per process step Delay
                                       (Idle, rework time)
 Value                                 Cost of waste and rework
 Paycheck errors                       For ex.: timesheet errors
                                       % timesheet late
 Cost of missed committment            Number of Task orders lost
AVOID PITFALLS
• Don’t use formulas and other to complicated tools in service business
• Devide between Control Charts for COMMON CAUSE and SPECIAL
  CAUSE
• Choose THE RIGHT CONTROL CHARTS:
  Use horizontal (X Axis)for day, week or month
  Use vertical (Y Axis) for number or percent defective, time, lenghts…

     100%

       80%

       60%                                                 UCL
       40%                                                 CL
                                                           LCL
       20%

        0%
               week 1    week 2    week 3    week 4
   Explanation:
   UCL: Upper Control Limits
   CL: Center Line
   LCL: Lower Control Limits
   You see how often data is collected (X axis)
   You see the number or percentage of defects (Y axis)
   The center line makes it happen to evaluate the process stability !
   Take the UCL / LCL for your absolute customer requirements limits
   Define the scale from UCL to LCL in scale points from 1-10

   Measure “Out of Control” processes and stabilize them with
   Preventive Actions !
Best Practice Roadmap for implementation
•   Use the SAFE Six Sigma Implementation road which is DIFFUSION
    Use the minimum amount of your organizational key resources, use “one day” swot teams

•   START SMALL
    Use the 4% rule, - 4% of any business create over half of the waste and rework, your
    workforce will learn by experience and our consulting – cost less than expensive training

•   SET BIG GOALS
    Try to reduce defects in one of your mission critical systems or processes by 50% in six
    months, for example:

    -   Task Order errors
    -   Service Defects
    -   Billing errors
    -   HR Third Party errors
    -   Payment errors

•   FOCUS ONE GOAL AT A TIME
    Six Sigma is like peanut butter, wide spread - thin traction, FOCUS, efforts is the key here;
    Try to improve 4% of your entire processes, than the next 4%, than the next 4%, you will
    reach your goals. Naarow down focus on analyzing one problem at a time brings SUCCESS !

•   CUSTOMER FOCUS
    Try to use Six Sigma Simplified /TQM to please your customers, take their wishes serious:


     Requirement                 Measurement                                 Period
     Better                      Number of defects                            Hour
                                 Percent defective
     Faster                      Committments missed                          week
                                time in minutes, hr, days
     Cheaper                    cost per rework, time, waste               shift,task order
     Think “Out of the Box” to find ways to create innovative solutions

                           Copyrights2012©robertjaspertheartofquality

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Six Sigma Simplified for Service Organizations

  • 1. Six Sigma Simplified for Service Organizations Best Practice Approach The steps to develop a successful Six Sigma Simplified Process for Service Organizations are: FOCUS HONOR IMRPOVE SUSTAIN FOCUS Focus on developing a Master Improvement Story for your organization which aligns multiple teams (See example below). IMPROVE Identify and eliminate root causes of organizational problems in time, defects or cost. Old Six Sigma wisdom: 4% of your business generates over 50% of rework - start to tackle the 4% first. SUSTAIN Define and stabilize the improvement by developing Line Graphs until you have achieved Predictability and Consistency as basis for Process Improvement. HONOR Purpose: To recognize, review, and refocus
  • 2. SIX SIGMA SCORECARD MASTER IMPROVEMENT STORY Long-Term Short-Term Measures Targets Increase Frequency of VISION Customer Applicant Acceptance Sale % increase Increase Customer Customer % increase Satisfaction Satisfaction Increase Hiring “Perfect Fit” “Perfect Fit” % increase Achieved Rate Rate Financial Increase Task # of Task % increase Order Size Order Growth Increase # of Customers % increase Customers Increase Frequency % increase Frequency Reduce Cycle Six Sigma’s Quality Time Cycle Time % reduction Operational Focus # and % of Reduce Defects % reduction Drives Defects Financial Growth and Reduce Costs Cost of Waste % reduction & Rework Customer Satisfaction Learning & Increase Core Training % increase Growth Skills Increase Opt Opt System Systems % reduction Unavailability Availability
  • 3. ROADMAP to LEAN SIX SIGMA SUCCESS for Service Organizations SET BIG GOALS After you have identifed your key measurements and Early Warning Indicators for each of these goals, go ahead and SET BIG GOALS like 50% less defects in processing jobs. (You get 50% more bigger Ideas, forget the 10% here!) DON’T DELEGATE Only start team approach with outlock of success and after you have already valuable Data collected and available KEY SIX SIGMA TOOLS Use Line Graphs, Pareto/Fishbone and Cause and Effect Charts to focus and analyze problems. Measure daily, weekly or monthly, where and what occurs Develop your “Yardsticks” your EARLY WARNING INDICATORS (Example below) “QUALITY” “PROCESS” Requirement Indicator Early Warning Indicator Percent of Defective Amount of rework per step Number of defects per step Missed Committments Time per process step Delay (Idle, rework time) Value Cost of waste and rework Paycheck errors For ex.: timesheet errors % timesheet late Cost of missed committment Number of Task orders lost
  • 4. AVOID PITFALLS • Don’t use formulas and other to complicated tools in service business • Devide between Control Charts for COMMON CAUSE and SPECIAL CAUSE • Choose THE RIGHT CONTROL CHARTS: Use horizontal (X Axis)for day, week or month Use vertical (Y Axis) for number or percent defective, time, lenghts… 100% 80% 60% UCL 40% CL LCL 20% 0% week 1 week 2 week 3 week 4 Explanation: UCL: Upper Control Limits CL: Center Line LCL: Lower Control Limits You see how often data is collected (X axis) You see the number or percentage of defects (Y axis) The center line makes it happen to evaluate the process stability ! Take the UCL / LCL for your absolute customer requirements limits Define the scale from UCL to LCL in scale points from 1-10 Measure “Out of Control” processes and stabilize them with Preventive Actions !
  • 5. Best Practice Roadmap for implementation • Use the SAFE Six Sigma Implementation road which is DIFFUSION Use the minimum amount of your organizational key resources, use “one day” swot teams • START SMALL Use the 4% rule, - 4% of any business create over half of the waste and rework, your workforce will learn by experience and our consulting – cost less than expensive training • SET BIG GOALS Try to reduce defects in one of your mission critical systems or processes by 50% in six months, for example: - Task Order errors - Service Defects - Billing errors - HR Third Party errors - Payment errors • FOCUS ONE GOAL AT A TIME Six Sigma is like peanut butter, wide spread - thin traction, FOCUS, efforts is the key here; Try to improve 4% of your entire processes, than the next 4%, than the next 4%, you will reach your goals. Naarow down focus on analyzing one problem at a time brings SUCCESS ! • CUSTOMER FOCUS Try to use Six Sigma Simplified /TQM to please your customers, take their wishes serious: Requirement Measurement Period Better Number of defects Hour Percent defective Faster Committments missed week time in minutes, hr, days Cheaper cost per rework, time, waste shift,task order Think “Out of the Box” to find ways to create innovative solutions Copyrights2012©robertjaspertheartofquality