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Lean, Six Sigma and ToC DMAIC Process Improvement Optimise -GB
Knowledge base Lean:  is centred around creating more value with less work by removing waste and increasing efficiencies i...
Knowledge base Theory of Constraints (TOC ) is an overall management philosophy introduced by Dr. Eliyahu M. Goldratt and ...
Six Sigma Process Improvement methodology Optimise -GB
<ul><li>What is the business mission statement? </li></ul><ul><li>Who are your customers? What is your products / Services...
Six Sigma  Define   What do the customers want from the project?  What are the issues you wish to address? What are the Cr...
Six Sigma  Stakeholder Identification! Optimise -GB D M A I C
Six Sigma  Stakeholder Analysis – who are the key players? Optimise -GB D M A I C
Six Sigma  What do you do and how? Use SIPOC (Process) map Supplier  - Who starts the activity in the process Input -  Wha...
Six Sigma  SIPOC (Process) map – Example: Customer Orders Optimise -GB D M A I C Supplier Input Process Output Customer Cu...
Six Sigma  Obtain data relating to the process Optimise -GB D M A I C Process Give order Take goods from shelf Produce and...
Six Sigma  High level Problem statement Optimise -GB D M A I C Poor quality with goods Invoice entered incorrectly Invoice...
Six Sigma  Critical to Quality (use SMART) Error Rate less than 2% Reduce cash collection days by 15 days Operational cost...
Six Sigma  Define the requirements   Weighting: M = Must have failing this then the solution is rejected 3 = Very importan...
Six Sigma  2. Identify protect team 1. Identify objectives / targets for project / Business case 3. Agree project scope an...
Six Sigma  Produce an A2/3  project charter to describe what the project is about and what it is to deliver (ex1) Optimise...
Six Sigma  Produce an A2/3  project charter to describe what the project is about and what it is to deliver (ex2) Optimise...
Six Sigma  Measure Confirm Objectives Document current process Measure the performance of your process in terms of time, c...
Six Sigma  SIPOC (Process) map - Convert into a Swim Lane process map Optimise -GB D M A I C Supplier Input Process Output...
Six Sigma  SIPOC (Process) map - Convert into a Swim Lane process map You may wish to add more process boxes for each depa...
Six Sigma  SIPOC (Process) map – Measures Optimise -GB D M A I C Types of measures Time of completing an activity Time wai...
Six Sigma  Process Time  10 Min  30 Min  10 Min  15 Min Waiting Time  0 Mins  5 Days  2 Days Distribution method  N/A  Pos...
Six Sigma  Using the data from the swim lane Process Time  = 45 Minutes Waiting Time  =  10,080 Minutes(8 hours in a day @...
Six Sigma  Spaghetti Diagram – Flow diagram  (describes the motion of activity) Customer Operations Credit Control Phone i...
Six Sigma  Spaghetti Diagram – Also used to describe movement of people in a factory or office (Motion is waste) Post Room...
Six Sigma  Key things to measure are : - Distance travelled - Cost of travel - Time of travel (return) - Number of trips m...
Six Sigma  Theory of Constraints (ToC) The Theory of Constraints aims to identify and eliminate constraints so that bottle...
Six Sigma  Process time:  10 Min  30 Min  10 Min  15 Min Batch Units B/F  10  25  10  50 Process along  (6)  (2)  (6)  (4)...
Six Sigma  Statistics to see if there is consistency Optimise -GB D M A I C Trial # Time to collect cash 1 12 Days 2 15 Da...
Six Sigma  Statistics to see if there is consistency Optimise -GB D M A I C
Six Sigma  Statistics to see if there is consistency Mean (Average) = 15.6 Days Median (Middle number)  = 15 Days Standard...
Six Sigma  Statistics to see if there is consistency A large standard deviation could be the result of different gauges – ...
Six Sigma  Remove abnormal data  Optimise -GB D M A I C
Six Sigma  Statistics to see if there is consistency Mean (Average) = 14.5 Days Median (Middle number)  = 15 Days Standard...
Six Sigma  Staff availability: 6.5 working hours  per day (8 hours less 1 hour lunch less 30 minutes for breaks) Meetings ...
Six Sigma  Staff Performance efficiency: Total Process time from order to cash As above one month later Efficiency Operati...
Six Sigma  Not Right First Time = Quality measurement of defects % Defects  5%  0%  5%  1%  0%  0%  4%  In a sample of 100...
Six Sigma  Therefore the Overall Efficiency is: OEE % = Availability X Performance X Quality X 100 OEE % = 77% X 80% X 85%...
Six Sigma  Remove or minimise non-value added work Optimise -GB Value Added Non-value Added Value enabled D M A I C Proces...
Six Sigma  Prioritisation of focus: Process time If your focus is on process time, a Pareto chart will help to prioritise ...
Six Sigma  Prioritisation of focus: Quality If your focus is on quality a Pareto chart will help to prioritise your improv...
Six Sigma  Analyse Pinpoint and verify causes of process inefficiencies and identify value added and non-value added activ...
Six Sigma  Prioritisation of focus: Quality If your focus is on quality a Pareto chart will help to prioritise your improv...
Six Sigma  From the Pareto chart the area of focus for quality would be “Take Orders” and Take goods from shelf” as these ...
Six Sigma  Why are there errors in taking goods from the shelf <ul><li>Why?  </li></ul><ul><li>Answer: Person mi-read the ...
Six Sigma  Use Cause and Effect Trees to get the root cause of the problem Optimise -GB D M A I C Take goods from shelf Wr...
Six Sigma  Use Cause and Effect Trees to get the root cause of the problem Optimise -GB D M A I C Take order from customer...
Six Sigma  Use Relationship models to understand interaction of problems The problems with the most outbound issues are ta...
Six Sigma  Measure costs, time for  Process Waste  Optimise -GB Waste category Office examples 1. Overproducing Printing /...
Six Sigma  List all root causes and wastes – Issues with High risk defect / waste levels are targets for improvement Optim...
Six Sigma  Improve To address the process inefficiencies of risks, defects and waste.  Identify and evaluate mitigating so...
5 S Six Sigma  Sort out the work area.... Optimise -GB D M A I C
5 S Six Sigma  Sort out the work area.... - Review equipment, files, stationery, storage, posters, shelves - Red tag items...
5 S Six Sigma  Sort out the work area.... - Arrange items for easy access, everything has a place - Place items so that yo...
5 S Six Sigma  Sort out the work area.... - Daily checks done - Clean surfaces down each day - Clean desk policy - All equ...
5 S Six Sigma  Sort out the work area.... - Do jobs in the same way where possible by all users - Keep and adhere to all r...
5 S Six Sigma  Sort out the work area.... - Keep high standards - Use suggestion box, management meetings to improve syste...
5 S Six Sigma  Sort out the work area.... Optimise -GB D M A I C
Generating solutions:  Good practice <ul><li>Shout out as many ideas as possible </li></ul><ul><li>Do not discuss ideas at...
Improve  - Select one process issue at a time   ...then Identify the solutions Solution 1 Use post it notes and put the so...
Improve  - Select one process issue at a time   ...Group the solutions to identify duplications Group the post it notes in...
Improve  - Select one process issue at a time   ... Generate additional ideas Six Sigma  Optimise- GB D M A I C
Improve  – Agree weighting for objectives to evaluate solutions Six Sigma  Count the objectives on the matrix to determine...
Improve  - Evaluate solutions against the objectives & criteria Identify solutions that must pass a certain requirement. I...
Improve  – Evaluate solution Six Sigma  Optimise- GB D M A I C Easy to  Implement Big Impact Hard to  implement Small Impa...
Improve  – Evaluate solution De Bono’s 6 thinking hats Six Sigma  Optimise- GB D M A I C
Improve  – Evaluate solution De Bono’s 6 thinking hats Six Sigma  Optimise- GB D M A I C
Current state process map Six Sigma  Optimise -GB D M A I C Customer Operations Finance Order goods Take goods from shelf ...
Future state process map Six Sigma  Solution: Operations produce invoice and pack goods Benefit: No waiting time, reduces ...
Six Sigma  Improve  - Now formulate a project plan to identify what activities are required to deliver the solutions. Agre...
Six Sigma  Control Project manage business process improvement activities  Ensure control reports, policy documents, train...
Control  – Use mistake proofing to prevent previous errors recurring Six Sigma  Optimise -GB D M A I C Use colour and clea...
Control  – Use exception report to act on out of control work Six Sigma  Unacceptable time to input invoice – managers to ...
Control  – Use visuals to set and monitor daily targets Invoices to process Six Sigma  Optimise -GB D M A I C Time Target ...
Control  – Use visuals to set and monitor weekly targets Invoices to process Six Sigma  Optimise -GB D M A I C Time Target...
Control  – Training manuals: Each process maps should be accompanied by the following documents Six Sigma  Process map of ...
Control – staff training: Steps to training Six Sigma  Optimise -GB D M A I C
Control – staff training: Ensure that  every user  involved in the business process has been given training. Use tests to ...
<ul><li>Control – Super Users for staff support: </li></ul><ul><li>Identify a select number of super users </li></ul><ul><...
<ul><ul><li>For other solutions </li></ul></ul><ul><ul><li>Contact  </li></ul></ul><ul><ul><li>Simon Misiewicz through  </...
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Lean, Six Sigma, ToC using DMAIC project management

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This presentation guides you through the DMAIC methodology that encompasses Lean, Six Sigma and ToC initiatives. There are five key stages of DMAIC. D = Design, where do you want to be? Create and communicate your vision, mission and objectives. M = Measure. What is to be measured and how? A = Analyse, what business process is to be analysed. Which process if changed would reap the biggest benefit? I = Improve, where are the improvements going to be made, what are the ideas and how will they be evaluated against your key objectives? C = Control, how are you going to control your process and people within it to ensure that they stick to the new way of doing things, what error proofing techniques can be built? What project management controls will you use? This presentation will guide you. Please contact me should you have any questions on simon@optimise-gb.com. Many thanks Simon Misiewicz

Published in: Business, Technology

Lean, Six Sigma, ToC using DMAIC project management

  1. 1. Lean, Six Sigma and ToC DMAIC Process Improvement Optimise -GB
  2. 2. Knowledge base Lean: is centred around creating more value with less work by removing waste and increasing efficiencies in business processes. Six Sigma: seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) to achieve cost reduction or profit increase and customer satisfaction Optimise -GB
  3. 3. Knowledge base Theory of Constraints (TOC ) is an overall management philosophy introduced by Dr. Eliyahu M. Goldratt and is geared to help organisations achieve their objectives. Any manageable system is limited by a small number of constraints. Optimise -GB
  4. 4. Six Sigma Process Improvement methodology Optimise -GB
  5. 5. <ul><li>What is the business mission statement? </li></ul><ul><li>Who are your customers? What is your products / Services? </li></ul><ul><li>What is the state of your business right now in terms of sales, cost, quality, customer satisfaction, market share? </li></ul><ul><li>What are your strengths, weaknesses, opportunities and threats? </li></ul><ul><li>Where do you want the business to be in the future? </li></ul>Before we continue ask yourself the following questions: Optimise -GB
  6. 6. Six Sigma Define What do the customers want from the project? What are the issues you wish to address? What are the Critical To Quality aspects of the project? What is the reason for change? By failing to prepare you are preparing to fail – Benjamin Franklin Optimise -GB D M A I C
  7. 7. Six Sigma Stakeholder Identification! Optimise -GB D M A I C
  8. 8. Six Sigma Stakeholder Analysis – who are the key players? Optimise -GB D M A I C
  9. 9. Six Sigma What do you do and how? Use SIPOC (Process) map Supplier - Who starts the activity in the process Input - What is used in the process: documents, reports, orders Process – What is done with the inputs Output – What are the outputs from the process, forms Customer – Who receives the output Optimise -GB D M A I C Supplier Input Process Output Customer
  10. 10. Six Sigma SIPOC (Process) map – Example: Customer Orders Optimise -GB D M A I C Supplier Input Process Output Customer Customer Need for goods Give order Order Operations Operations Order Take goods from shelf Obtained goods Finance Finance Obtained Goods Produce and print invoice Invoice Operations Operations Goods and Invoice Box goods / invoice Boxed Goods Customer
  11. 11. Six Sigma Obtain data relating to the process Optimise -GB D M A I C Process Give order Take goods from shelf Produce and print invoice Box goods / invoice
  12. 12. Six Sigma High level Problem statement Optimise -GB D M A I C Poor quality with goods Invoice entered incorrectly Invoice authorised in error Invoices lost in the post Invoice paid twice Process Give order Take goods from shelf Produce and print invoice Box goods / invoice
  13. 13. Six Sigma Critical to Quality (use SMART) Error Rate less than 2% Reduce cash collection days by 15 days Operational costs less than £5 per transaction Optimise -GB D M A I C Process Give order Take goods from shelf Produce and print invoice Box goods / invoice
  14. 14. Six Sigma Define the requirements Weighting: M = Must have failing this then the solution is rejected 3 = Very important to strategy, customer requirement, legal 2 = Would have significant benefit to the company 1 = Would be good to have but not imperative Optimise -GB D M A I C Quality Aspects / Objectives Weighting* Examples: Improve speed of debt collection by 15 days M Remove manual intervention of generating letters 3 Reduce costs of sending letters 1
  15. 15. Six Sigma 2. Identify protect team 1. Identify objectives / targets for project / Business case 3. Agree project scope and direction 4. Create a high level project timetable Optimise -GB D M A I C Project Charter (Project document) Or PID
  16. 16. Six Sigma Produce an A2/3 project charter to describe what the project is about and what it is to deliver (ex1) Optimise -GB D M A I C
  17. 17. Six Sigma Produce an A2/3 project charter to describe what the project is about and what it is to deliver (ex2) Optimise -GB D M A I C
  18. 18. Six Sigma Measure Confirm Objectives Document current process Measure the performance of your process in terms of time, cost and quality (defects) and set new targets to be achieved Optimise -GB D M A I C
  19. 19. Six Sigma SIPOC (Process) map - Convert into a Swim Lane process map Optimise -GB D M A I C Supplier Input Process Output Customer Customer Need for goods Give order Order Operations Operations Order Take goods from shelf Obtained goods Finance Finance Obtained Goods Produce and print invoice Invoice Operations Operations Goods and Invoice Box goods / invoice Boxed Goods Customer
  20. 20. Six Sigma SIPOC (Process) map - Convert into a Swim Lane process map You may wish to add more process boxes for each department or add decision boxes for variable outcomes with diamonds. We will continue with the simple process map as an example Optimise -GB D M A I C Customer Operations Finance Give order to sales desk Take goods from shelf Produce / print invoice Box goods / Invoice
  21. 21. Six Sigma SIPOC (Process) map – Measures Optimise -GB D M A I C Types of measures Time of completing an activity Time waiting between activities Labour cost of activity Distribution costs % of errors / re-work Number of people in the process Cost of 3 rd party Storage costs
  22. 22. Six Sigma Process Time 10 Min 30 Min 10 Min 15 Min Waiting Time 0 Mins 5 Days 2 Days Distribution method N/A Post Post Cost of process £10.00 £0.00 £15.00 £0.00 £5.00 £0.00 £2.50 % Defects 5% 0% 5% 1% 0% 0% 4% Optimise -GB D M A I C Customer Operations Finance Give order to sales desk Take goods from shelf Produce / print invoice Box goods / Invoice
  23. 23. Six Sigma Using the data from the swim lane Process Time = 45 Minutes Waiting Time = 10,080 Minutes(8 hours in a day @7 days) Cost of process = £32.50 % Defects = 23% rework required You will need to verify the above data with sampling techniques of your choosing – Once more data has been identified then statistics can be used to verify consistency. Interviews should be used to obtain qualitative information Optimise -GB D M A I C
  24. 24. Six Sigma Spaghetti Diagram – Flow diagram (describes the motion of activity) Customer Operations Credit Control Phone in order Deliver goods and invoice Pay invoice Requests an invoice to be raised Optimise -GB D M A I C
  25. 25. Six Sigma Spaghetti Diagram – Also used to describe movement of people in a factory or office (Motion is waste) Post Room Credit Control Desks Central Printer Collect copy of order from operations Collect invoice from printer Take invoice to post room Stationery Room Get stamps and envelopes Optimise -GB D M A I C
  26. 26. Six Sigma Key things to measure are : - Distance travelled - Cost of travel - Time of travel (return) - Number of trips made Optimise -GB D M A I C
  27. 27. Six Sigma Theory of Constraints (ToC) The Theory of Constraints aims to identify and eliminate constraints so that bottle necks do not appear by following 5 steps: 1 – Identify the constraint 2 – Exploit the constraint to maximise production benefit 3 – Subordinate everything else – eliminate non value added work 4 – Elevate the constraint by increasing resources to handle more work 5 – Start again from point 1 to review all other constraints Optimise -GB D M A I C
  28. 28. Six Sigma Process time: 10 Min 30 Min 10 Min 15 Min Batch Units B/F 10 25 10 50 Process along (6) (2) (6) (4) Prev Process - 6 2 6 Batch Units C/F 4 29 6 52 You can see which processes are becoming bottle necks and where action is required Optimise -GB D M A I C
  29. 29. Six Sigma Statistics to see if there is consistency Optimise -GB D M A I C Trial # Time to collect cash 1 12 Days 2 15 Days 3 28 Days 4 15 Days 5 22 Days 6 9 Days 7 10 Days 8 12 Days 9 15 Days 10 18 Days
  30. 30. Six Sigma Statistics to see if there is consistency Optimise -GB D M A I C
  31. 31. Six Sigma Statistics to see if there is consistency Mean (Average) = 15.6 Days Median (Middle number) = 15 Days Standard deviation = 5.8 If the standard deviation is > 2 then there is a large variation and little correlation in the data. Identifying abnormal data and removing it will ensure that a better sample may be taken. Optimise -GB D M A I C
  32. 32. Six Sigma Statistics to see if there is consistency A large standard deviation could be the result of different gauges – for example: - Different people being measured - Variations in complexity with invoice - Customers paying invoices differently - Different payment terms It is important to understand these variations and produce sample data based on categories rather than the entire sample Optimise -GB D M A I C
  33. 33. Six Sigma Remove abnormal data Optimise -GB D M A I C
  34. 34. Six Sigma Statistics to see if there is consistency Mean (Average) = 14.5 Days Median (Middle number) = 15 Days Standard deviation = 2.26 The standard deviation is still greater than 2 but this at least provides a better sample. Therefore the average (baseline) of 14.5 can be assumed for larger samples. Optimise -GB D M A I C
  35. 35. Six Sigma Staff availability: 6.5 working hours per day (8 hours less 1 hour lunch less 30 minutes for breaks) Meetings none customer focused Idle time due to no work Availability time Operating time 390 Mins (60 Mins) (30 Mins) 300 Mins 77% Availability Optimise -GB D M A I C
  36. 36. Six Sigma Staff Performance efficiency: Total Process time from order to cash As above one month later Efficiency Operating time 15 Days 18 Days 80% Optimise -GB D M A I C
  37. 37. Six Sigma Not Right First Time = Quality measurement of defects % Defects 5% 0% 5% 1% 0% 0% 4% In a sample of 100 sales invoices the number of defects would be 15. Therefore the NRFT is 15%. Quality = 85% Optimise -GB D M A I C Customer Operations Finance Order goods Take goods from shelf Produce and print invoice Box goods and invoice
  38. 38. Six Sigma Therefore the Overall Efficiency is: OEE % = Availability X Performance X Quality X 100 OEE % = 77% X 80% X 85% X 100 OEE % = 52.4% (World Class is 85%) This means that 47.6% of work is lost through inefficiency Optimise -GB D M A I C
  39. 39. Six Sigma Remove or minimise non-value added work Optimise -GB Value Added Non-value Added Value enabled D M A I C Process Take order Take goods from shelf Produce and print invoice Box goods / invoice
  40. 40. Six Sigma Prioritisation of focus: Process time If your focus is on process time, a Pareto chart will help to prioritise your improvement focus. In this case Taking goods from Shelves” and Boxing goods and invoice” seems to take the longest time. Optimise -GB D M A I C Process Time Take goods from shelf 30 Package goods and invoice 15 Take order 10 Produce Invoice 10
  41. 41. Six Sigma Prioritisation of focus: Quality If your focus is on quality a Pareto chart will help to prioritise your improvement focus. In this case “Taking goods from shelves” and “Taking orders” has the larges defects. Optimise -GB D M A I C Process Defects Take goods from shelf 5% Take order 5% Package goods and invoice 4% Produce Invoice 1%
  42. 42. Six Sigma Analyse Pinpoint and verify causes of process inefficiencies and identify value added and non-value added activities Determine process capability and speed Look beneath the surface; let not the several quality of a thing nor its worth escape thee – Marcus Aurelius Antoninus Optimise -GB D M A I C
  43. 43. Six Sigma Prioritisation of focus: Quality If your focus is on quality a Pareto chart will help to prioritise your improvement focus. In this case Taking goods from shelves and taking orders has the larges defects. Optimise -GB Process Defects Take goods from shelf 5% Take order 5% Package goods and invoice 4% Produce Invoice 1% D M A I C
  44. 44. Six Sigma From the Pareto chart the area of focus for quality would be “Take Orders” and Take goods from shelf” as these have 5% defects You will now need to understand why!! Optimise -GB D M A I C Process Give order Take goods from shelf Produce and print invoice Box goods / invoice
  45. 45. Six Sigma Why are there errors in taking goods from the shelf <ul><li>Why? </li></ul><ul><li>Answer: Person mi-read the order </li></ul>2. Why? Answer: The writing is hard to read 3. Why? Answer: The person writing it was in a rush 4. Why? Answer: Because their workload was too much Etc etc Optimise -GB Invoice paid twice D M A I C
  46. 46. Six Sigma Use Cause and Effect Trees to get the root cause of the problem Optimise -GB D M A I C Take goods from shelf Writing on form mis-read Writing of poor quality Person was in a rush Writing was smudged Felt tips are used Too much workload Person is carless Paper is greasy No pens in the office No other supplies Lack of training
  47. 47. Six Sigma Use Cause and Effect Trees to get the root cause of the problem Optimise -GB D M A I C Take order from customer Wrong order taken Could not hear customer Phone telephone systems Customer quotes wrong code Code obsolete Poor telephone reception Customer spoke too quietly Used old catalogue Product obsolete
  48. 48. Six Sigma Use Relationship models to understand interaction of problems The problems with the most outbound issues are targets for improvement Optimise -GB D M A I C Customer spoke too quietly Product obsolete Too much workload No pens in the office No other supplies Lack of training Poor telephone reception
  49. 49. Six Sigma Measure costs, time for Process Waste Optimise -GB Waste category Office examples 1. Overproducing Printing / working on paperwork before it is needed 2. Inventory Filed in boxes, office supplies, batch processing 3. Waiting System downtime, managers approval, information from others 4. Extra processing Re-entering data, extra copies, excessive reports, budget process, scanning 5. Correction Data entry, design, invoice errors 6. Excess motion Walking to and from printers, other offices, filing 7. Transportation Excessive email attachments, multiple hand offs, approvals, postal services, internal post 8. Under utilised people Limited employee authority, excessive management control D M A I C
  50. 50. Six Sigma List all root causes and wastes – Issues with High risk defect / waste levels are targets for improvement Optimise -GB Risk / defect / waste Impact Impact M / M / L Probability H / M / L Risk / Defect / Waste Level Poor quality of goods from the supplier Cannot sell goods, use less quality products H M M Lack of training in customer service and procurement Quality of staff output decreased H H H No pens in the office Writing smudged and wrong orders picked H M H D M A I C
  51. 51. Six Sigma Improve To address the process inefficiencies of risks, defects and waste. Identify and evaluate mitigating solutions. Develop project implementation plan People never improve unless they look to some standard or example higher and better then themselves – Tryon Edwards Optimise -GB D M A I C
  52. 52. 5 S Six Sigma Sort out the work area.... Optimise -GB D M A I C
  53. 53. 5 S Six Sigma Sort out the work area.... - Review equipment, files, stationery, storage, posters, shelves - Red tag items not used often (Keep spare tags at the ready) - Remove red tag when item is used - Remove items that have red tags still in place after 3 months - Have things next to you, where you need it - Label cupboards (use easy to read writing, colour) - Use shadow boards to show where specific items go - Throw out rubbish Optimise -GB D M A I C
  54. 54. 5 S Six Sigma Sort out the work area.... - Arrange items for easy access, everything has a place - Place items so that you do not have to search for them Optimise -GB D M A I C
  55. 55. 5 S Six Sigma Sort out the work area.... - Daily checks done - Clean surfaces down each day - Clean desk policy - All equipment checked for suitability, efficiency and effectiveness Optimise -GB D M A I C
  56. 56. 5 S Six Sigma Sort out the work area.... - Do jobs in the same way where possible by all users - Keep and adhere to all rules - Speed of access to systems and equipment remains high Optimise -GB D M A I C
  57. 57. 5 S Six Sigma Sort out the work area.... - Keep high standards - Use suggestion box, management meetings to improve system further - Track measures via photos, checklists, visual workplace - Focus on the customer - Remove 7 wastes Optimise -GB D M A I C
  58. 58. 5 S Six Sigma Sort out the work area.... Optimise -GB D M A I C
  59. 59. Generating solutions: Good practice <ul><li>Shout out as many ideas as possible </li></ul><ul><li>Do not discuss ideas at this stage </li></ul><ul><li>Questions should only be asked for clarification purposes </li></ul><ul><li>Everyone should suggest an idea </li></ul><ul><li>No judgements or criticisms should be made </li></ul><ul><li>Do not talk over others </li></ul>Six Sigma Optimise- GB D M A I C
  60. 60. Improve - Select one process issue at a time ...then Identify the solutions Solution 1 Use post it notes and put the solutions on a blank wall Solution 2 Solution 3 Solution 4 Solution 5 Solution 6 Solution 7 Solution 8 Solution 9 Solution 10 Solution 11 Solution 12 Solution 13 Solution 14 Solution 15 Solution 16 Solution 17 Solution 18 Six Sigma Optimise- GB D M A I C
  61. 61. Improve - Select one process issue at a time ...Group the solutions to identify duplications Group the post it notes in an affinity diagram to identify common themes Six Sigma Theme 3 Solution 12 Solution 18 Theme 2 Theme 1 Optimise- GB Solution 1 Solution 2 Solution 3 Solution 4 Solution 5 Solution 7 Solution 8 Solution 9 Solution 10 Solution 11 Solution 13 Solution 14 Solution 15 Solution 16 Solution 17 D M A I C
  62. 62. Improve - Select one process issue at a time ... Generate additional ideas Six Sigma Optimise- GB D M A I C
  63. 63. Improve – Agree weighting for objectives to evaluate solutions Six Sigma Count the objectives on the matrix to determine the weighting Optimise- GB D M A I C
  64. 64. Improve - Evaluate solutions against the objectives & criteria Identify solutions that must pass a certain requirement. If the solution does not meet this requirement then it will not be selected even though it may have a high weighted score, which must be 5 for high importance, 2 for nice to have. If the solution meets the criteria then give the solution the weighted score or 1 if it does not meet the requirement. Multiply the scores to identify the best solution Six Sigma Optimise- GB Solutions Must Have Objective 2 Weighting 5 Objective 2 Weighting 2 Objective 2 Weighting 2 Solution 1 Pass 5 1 2 10 Solution 2 Fail N/A N/A N/A N/A Solution 3 Pass 1 2 2 4 D M A I C
  65. 65. Improve – Evaluate solution Six Sigma Optimise- GB D M A I C Easy to Implement Big Impact Hard to implement Small Impact Solution 1 Solution 3 Solution 6 Solution 7 Solution 8 Solution 9 Solution 2 Implement Now Possible Kill Implement Later
  66. 66. Improve – Evaluate solution De Bono’s 6 thinking hats Six Sigma Optimise- GB D M A I C
  67. 67. Improve – Evaluate solution De Bono’s 6 thinking hats Six Sigma Optimise- GB D M A I C
  68. 68. Current state process map Six Sigma Optimise -GB D M A I C Customer Operations Finance Order goods Take goods from shelf Produce and print invoice Box goods and invoice
  69. 69. Future state process map Six Sigma Solution: Operations produce invoice and pack goods Benefit: No waiting time, reduces headcount from Finance Solution: Customers place orders through internet (discounts as incentives) Benefit: Orders are no longer hand written thus mistakes reduced Optimise -GB D M A I C Customer Operations Order goods on internet Take goods from shelf Produce and print invoice Box goods and invoice
  70. 70. Six Sigma Improve - Now formulate a project plan to identify what activities are required to deliver the solutions. Agree millstones for review Optimise -GB D M A I C Project Plan What Who When How
  71. 71. Six Sigma Control Project manage business process improvement activities Ensure control reports, policy documents, training manuals and schedules are in place to ensure control Optimise -GB D M A I C
  72. 72. Control – Use mistake proofing to prevent previous errors recurring Six Sigma Optimise -GB D M A I C Use colour and clear help guides for users Use system interfaces to prevent manual working Use drop down lists instead of free text fields Use colourful pictures to show the expected end result Process Take order Take goods from shelf Produce and print invoice Box goods / invoice
  73. 73. Control – Use exception report to act on out of control work Six Sigma Unacceptable time to input invoice – managers to immediately address issue System to send email upon work falling outside tolerance levels Optimise -GB D M A I C
  74. 74. Control – Use visuals to set and monitor daily targets Invoices to process Six Sigma Optimise -GB D M A I C Time Target Actual Difference Reason 0900 – 1000 1000 – 1100 1100 – 1200 1200 – 1300 1300 – 1400 1400 – 1500 1500 – 1600 1600 – 1700 Total
  75. 75. Control – Use visuals to set and monitor weekly targets Invoices to process Six Sigma Optimise -GB D M A I C Time Target Actual Difference Reason Week 1 Week 2 Week 3 Week 4 Total Month
  76. 76. Control – Training manuals: Each process maps should be accompanied by the following documents Six Sigma Process map of who does what Procedure of how to carry out activity clearly numbered with screen shots What is expected, policies behind work, rules and regulations that apply Examples of what the finished output should look like: example being forms Check list for the activities to confirm completion and sign as authorisation Optimise -GB D M A I C Process map How to guide Policy info Specimen Checklist
  77. 77. Control – staff training: Steps to training Six Sigma Optimise -GB D M A I C
  78. 78. Control – staff training: Ensure that every user involved in the business process has been given training. Use tests to ensure understanding and ensure employees sign to acknowledge that training has been given Do not allow access to systems or allow person to work in process if they do not have thorough understanding Six Sigma Optimise -GB D M A I C
  79. 79. <ul><li>Control – Super Users for staff support: </li></ul><ul><li>Identify a select number of super users </li></ul><ul><li>Involve the super users in the business process improvement initiative </li></ul><ul><li>Ensure super user is always available and that people know their contact details </li></ul><ul><li>Ensure that process issues / risks are filtered from the super users to change management </li></ul>Six Sigma Optimise -GB D M A I C
  80. 80. <ul><ul><li>For other solutions </li></ul></ul><ul><ul><li>Contact </li></ul></ul><ul><ul><li>Simon Misiewicz through </li></ul></ul><ul><ul><li>Web: www.optimise-gb.com </li></ul></ul><ul><ul><li>Email: [email_address] or </li></ul></ul>Optimise- GB

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