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2 DAY PROGRAMME ON

                          LEAN
                            &
                       SIX SIGMA
        ...
STATISTICS AS A KEY TECHNOLOGY IS NOT MERELY AN
OPERATIONAL TOOL FOR PROFITABLE BUSINESS. BUT AS A
POWERFUL ACCELERATOR AN...
ABOUT THE INSTITUTE
      PIONEERING QUALITY MOVEMENT IN INDIA BY
                 SQC & OR DIVISION OF ISI
70 years of e...
Every year about 100 organizations are benefited in
following this approach in different sector, Private – Public –
Gover...
The value of
     time


               5
LONG LIFE WITHOUT QUALITY
           (OR)
 QUALITY WITH GIVEN LIFE




                        6
TO BE THE FIRST AND FAST PLAYER
                        Price

       Willingness to
             pay




                ...
TODAY’S BUSINESS ISSUES:
        Quality and price are two axis of business so long. The Third axis
emerged as -"THE TIME"...
TAKING OF THE BLINDERS…

“In strategy it is important to see distant things as if
they were close and to take a distanced ...
COMPETITIVE REQUIRES INNOVATION

No existing market share is safe today, no product life is
indefinite. Not only is this t...
INNOVATING FOR COMPETITIVENESS
Innovation     requires     the     planned    abandonment     of
established, familiar, cu...
MANAGEMENT
    OF
   TIME

             12
TIME CRESIS MANAGEMENT:
         Crisis involves two aspects. The cresis created by factors within one‟s
control and such ...
DO THE UNPLEASANT FIRST:
         We can not expect every thing in life to be pleasant. Like the two
sides of the coin, th...
MURPHY’S LAW:
         What can go wrong, will go wrong. The possibility of something
going wrong is much greater than its...
DEALING WITH THE ISSUES:
          For any business man, interference from competitor will be a problem.
This is not creat...
ACCEPT LIMITATIONS:
         To be for failure, it is necessary to recognize one‟s limitations. Our
knowledge is limited a...
TIME PRIORITIZATION:
          Water, Tumbler, pebbles, sand, stones, grane . All can be accommodated, if it is
planned in...
“What ever a leader does, other people do. The very thing.
What ever the upholds as authority, an ordinary person
follows ...
Understanding
     lean


                20
Understanding lean


   Lean:
        A systematic approach to identifying and eliminating waste
{non- value-added activit...
Lean production:
      The opposite of mass production.
Muda:

        A Japanese word, usually translated as “waste”, tha...
Example for takt time
Time Available      Minutes
     Shift               480
    Breaks               -10
    Lunch     ...
Business
  Process
Improvement
  system
              24
Ground Rules

• Everyone participates
• Anything is open to question
• Look at issues from larger perspective
• Ideas from...
Leadership Vision

• “Quality . . . is the next opportunity for our Company to
  set itself apart from its competitors . ....
Definition of a process


A Process Is A Collection Of
Activities That Takes One Or
 More Kinds Of Input And
 Creates Outp...
Processes

    All activity takes place in terms of a process.
         The quality of the process determines the quality...
Strategic Focus

 “Voice Of The Customer”     “Voice Of The Shareholder”          Other Stakeholders
        (Surveys)    ...
Levels of Process

Core Process           Equip.         Order/        Pick-Up &       Customer
                          ...
3 Dimensions of Process

The Dimensions Of Process Focus




                            Management
                      ...
BPMS

  What is BPMS?


A nine step methodology designed to create
ongoing accountability for managing entire
cross-functi...
BPMS
 Why BPMS ?

• Proven methodology to optimize process
  performance


• Establishes value-added metrics to assess
  p...
BPMS
      •Assess your previous mission/goals                                     Process Mission Statement
             ...
Step-1 : Create Process Mission

     Define process specific mission.

        Mission statement of the plant

     Li...
Step-2 : Define & Document the Process



      Use SIPOC to define the process.
        Ready for all plants



      U...
Use SIPOC to define the process.
     Starting at the Top
     Key business activities can be defined at different levels ...
Which Flowcharting Technique
     Should I use?

         Basic                   Activity             Deployment
       F...
Types of Flowcharts Useful
            for Understanding Process Flow
      Activity               Deployment
       flo...
Activity Flowcharts
                                                  Hotel Check-out Process                          Pro...
Deployment Flowcharts
                                People or groups
Deployment flowcharts show    listed across the top...
Value - Added and
      Nonvalue -  Added Steps
     Value-Added Step:
       Customers are willing to pay for it.
      ...
How to Create
     an Opportunity Flowchart
                               Value-Added Steps   Nonvalue-Added Steps
     ...
Step-3 : Document Customer & Process Requirements




 Types of customers.


 Translating VOC into specific requirements...
VOC Process

          1.              2.                 3.              4.            5.
       Identify      Collect an...
What is Critical to Quality
What is Critical to Quality (CTQ)?
 What a customer tells us they want from our product / ser...
Example: CTQ Tree
                           One of 7 Management Tools – Tree diagram

            Need                   ...
Establishing a Performance Standard

 • A performance standard translates customer needs into
   quantified requirements f...
BPMS
Step 3 – Document Customer/Process Requirements VOC Guidelines

      Internal          Voice of Customer
           ...
Step 3 – Document Customer/Process Requirements VOC Guidelines

                    After Clarifying, the          Custome...
BPMS
Step 4 – Identify Output/Process Measures:                                                                           ...
CTQ Template
C T Q T ree T em plate
   CTQ          S p e c ific C T Q                     M in im u m                 M a...
BPMS
Step 5 – Build Process Mgmt. System

   Objectives: Consolidate work performed in steps 1-5 onto
   one concise page ...
Step-5 : Build Process Management System



 Measures & Targets.

 Monitoring System.

 Contingency Plan.




         ...
Process Management System
Process Description: Process Customer : Customer Requirements :      Outcome Quality Indicators ...
BPMS
Step 6 – Establish Data Collection Plan                                                                              ...
Data Collection Plan

          Reporting
          Frequency
         of Measures                                        ...
BPMS
 Step 6 – Establish Data Collection Plan                                     Guidelines
                   Decision t...
BPMS

Step 7 – Process Performance Monitoring                                               Guidelines
                   ...
Process Performance Monitoring


 All Repetitive activities of a process have a certain amount
  of fluctuation .

 Inpu...
BPMS
Step 7 – Process Performance Monitoring                                                                              ...
BPMS

Step 8 – Develop Dashboards                                       Guidelines
                                       ...
Step 9 – Operate Process Management System &
                    Identify
               Improvement Opportunities

  Exte...
Process Management Chart
Process Name :          Process Owner :                       Date :
                 Process Map...
Project Y Alignment
                        Key output metrics that are
Business Big Y’s           aligned with strategic
...
Project Identification


               Customer wants and
                needs should drive
                   our actio...
A GreAt Project Should…

 Be clearly bound with defined goals
    If it looks too big, it is
 Be aligned with Strategic...
Selecting the Right Projects




                                        Delivered CTQ Importance
                        ...
Project Prioritization Matrix

The desirability of a project increases as you move from
  the lower right to the upper lef...
Project Selection
• Success Factors
   – Project scope is manageable
   – Project has identifiable defect
   – Project has...
A Good Project

A good project:
  – Problem and Goal Statements are clearly stated
  – Defect and opportunity definition i...
A Bad Project

A bad project:
  – Is not focused–scope is too broad
  – Is not clear on what you are trying to fix
  – May...
Project Chartering

A Charter:
   – Clarifies what is expected of the team
   – Keeps the team focused
   – Keeps the team...
Five Major Elements Of A Charter

1. Business Case
    Explanation of why to do the project
2. Problem and Goal Statements...
The Goal Statement

The Goal Statement then defines the
team’s improvement objective           Specific
Definition of the...
8 Steps To Bind A Project

1. Identify the customer
   – Who receives the process output?
      (May be an internal or ext...
8 Steps To Bind A Project

4.    Identify CTQ’s for those deliverables
     – What are the specific, measurable attributes...
8 Steps To Bind A Project

7. Evaluate which CTQ’s have the greatest opportunity
   for improvement
  – Consider available...
Project Selection Workshop

2 Ways :

• Top- down method – More effective & High impact projects.
                    (Thr...
CTQ Selection Workshop

List down the Strategic Business Objectives
List down the Key Focus Areas to achieve the SBOs
P...
CTQ Selection Workshop
Step 1       - List down the Strategic Business
             Objectives & Key focus areas of your
 ...
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
Lean Manufacturing And Six Sigma
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Lean Manufacturing And Six Sigma

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Six Sigma Vs Lean

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Lean Manufacturing And Six Sigma

  1. 1. 2 DAY PROGRAMME ON LEAN & SIX SIGMA MANUFACTURING PRACTICES Faculty: Prof. A. Rajagopal, HEAD, SQC&OR UNIT INDIAN STATISTICAL INSTITUTE Ph: 0422-2441192 mobile no +91 98442245219 mail id abramaya@hathway.com 1
  2. 2. STATISTICS AS A KEY TECHNOLOGY IS NOT MERELY AN OPERATIONAL TOOL FOR PROFITABLE BUSINESS. BUT AS A POWERFUL ACCELERATOR AND CATALYST FOR ECONOMIC DEVELOPMENT PROF: P.C.MAHALANOBIS 2
  3. 3. ABOUT THE INSTITUTE PIONEERING QUALITY MOVEMENT IN INDIA BY SQC & OR DIVISION OF ISI 70 years of existence as a centre of excellence promoting statistics as a key technology.  One of the world‟s leading organization recognized as an Institute of National Importance.  At the Initiation of founder Prof. P.C.Mahalanobis, Dr.Walter Shewart visited the institute in 1947 to introduce SQC in the industries particularly in the textile sector in a significant way. Successfully demonstrated SQC / SPC not only as operational tool for profitable business but also as a powerful accelerator and catalyst for economic development. 3
  4. 4. Every year about 100 organizations are benefited in following this approach in different sector, Private – Public – Government, around the country. Over 10,000 projects has been carried out so far.  Now Coimbatore Unit is introducing this approach to small scale sector also based on the widespread experience in the application of Textile sector. Objective:  Improve Quality  Reduce Waste / Rework / Rejection  Increase Productivity  Best utilization of resources including time. 4
  5. 5. The value of time 5
  6. 6. LONG LIFE WITHOUT QUALITY (OR) QUALITY WITH GIVEN LIFE 6
  7. 7. TO BE THE FIRST AND FAST PLAYER Price Willingness to pay Quality PPM Competitive Edge Time 7
  8. 8. TODAY’S BUSINESS ISSUES: Quality and price are two axis of business so long. The Third axis emerged as -"THE TIME"- the factor taking leading position in business. “SPEED" is the need of hour. “To be FAST and to be FIRST has become the challenge". Conventional Business approach is moving towards higher production (Quantity), which some time affects the Quality and may force to sell in discounts or as seconds, and to carry out "High Inventories“ “Quality in time" at the "least cost" is the mission statement, moving ahead in this changing environment. "Statistical Methodologies" -that study the uncertainties, Analytical approach that economies the cost and which minimizes the waiting time/ idle time through such “No investment”- “No cost tools” enabled to maximize the return on valued resources. 8
  9. 9. TAKING OF THE BLINDERS… “In strategy it is important to see distant things as if they were close and to take a distanced view of close things” Miyamoto Musashi The Book of Five Rings 9
  10. 10. COMPETITIVE REQUIRES INNOVATION No existing market share is safe today, no product life is indefinite. Not only is this true for high technology, but it is also true for all consumer products. Competition will tear away market niches and technology advantages from the established business through the weapon of innovation. Companies will become merely a shadow of their „glory days‟ or will vanish if they do not find a way to re-create their market success through a steady stream of innovative products and customer – oriented solutions. 10
  11. 11. INNOVATING FOR COMPETITIVENESS Innovation requires the planned abandonment of established, familiar, customary or comfortable ways of working… whether in product or services, competencies or human relationships or the organisation itself. Business Assessment Break through Planning System Strategic Change Decision Management Making Conclusion: Innovation means that you must be organized to allow constant change. 11
  12. 12. MANAGEMENT OF TIME 12
  13. 13. TIME CRESIS MANAGEMENT: Crisis involves two aspects. The cresis created by factors within one‟s control and such crisis can be avoided. Then those crisis created by factor‟s beyond one‟s control and have to be faced. Major cresis can be avoid, if we act upon a situation at the right time. More often than not, there are two tendencies that present us from acting at the right time.  Postponement of the unpleasant Non recognition of the problem PROCRASTINATION CREATES CRESIS: The tendency to do what ii easy, trouble free, and pleasant and leave for the future the issues that are difficult, Thus the difficult issues keeps piling up. They become irritants. We do not want this because it remind us of our inefficiency and incapacity to face unpleasant issues. A thing undone always remain with us. 13
  14. 14. DO THE UNPLEASANT FIRST: We can not expect every thing in life to be pleasant. Like the two sides of the coin, the unpleasant always goes with the pleasant. The one who does not postpone making a decision, right or wrong, to fulfill a responsibility, that person alone can be successful. Postponing something because it is unpleasant is wrong. It has the potential to create a crisis and when it occurs, we will be inadequately equipped to face it. RECOGNIZE THE PROBLEM AND ACT: We get used to the problem so much so chronically, that we don‟t recognize it as a problem. When there is a problem, we tend to say, “There is no problem, Everything will be alright”. But it will not be all right. 14
  15. 15. MURPHY’S LAW: What can go wrong, will go wrong. The possibility of something going wrong is much greater than its going right. One can act upon a problem, however small it is, only when the problem is first accepted. Action presupposes a decision, a will, and the will can exists, only when there is recognition. KARMA: “Everything will be all right if my karma is good”. Karma does not work that way, the theory of karma is not fatalism. It does not justify passing the buck. It pins down the responsibility upon us. so accept problem as it occurs. 15
  16. 16. DEALING WITH THE ISSUES: For any business man, interference from competitor will be a problem. This is not created by him. This has to be faced. This requires inner strength. It is like learning to drive a car. The instruction cannot reproduce all possible traffic situations. The learner has to deal with particular situation as they occur. EVERY EFFECT IS A CALCULATED RISK: When you make a business projection for the following year, factors like potential demand, availability of raw material, changes in tax structure, shrikes are taken in to account. Since every intelligent effort involves a calculated risk, only two results can be expected from every effort – Success to different degree – Failure to different degree. With every failure, a person seems to become more and more frightened and a time comes when are is not able to act at all. So it is important that we are prepared for failure in our effort, because success may not always come. Our power are limited, and there are factors beyond our control. 16
  17. 17. ACCEPT LIMITATIONS: To be for failure, it is necessary to recognize one‟s limitations. Our knowledge is limited and so we can not avoid many situations from occurring- otherwise we could avoid all accidents. sometime we have the knowledge but our power is limited and we feel helpless . If you permit yourself to be depressed for reasons you seem to have no control over, you become helpless and the outside factors will make you more and more inefficient and ineffective. Depression is a reaction. In action, you have freedom to exercise your will. Acceptance of facts is a precondition to an action, Non –acceptance is an ideal condition for reaction – in fact Non- acceptance itself is a reaction. Non –acceptance does not alter the facts- the reaction creates a chain of reactions. SO ACCEPT THE FACTS AND KEEP ACTION. 17
  18. 18. TIME PRIORITIZATION: Water, Tumbler, pebbles, sand, stones, grane . All can be accommodated, if it is planned in priority while filling the tumbler without pilferage. We can find time for anything, provided we have passion for it. GOALS MUST BE CLEAR: Nobody works for failure. You do not have to make an effort to achieve a failure. Sometimes people invest in failing business for tax purposes. It is not a real failure. It is a calculated achievement. CORPORATE MANAGER: BE CLEAR ABOUT GOAL. What is to be accomplished. What is expected out of me. I must also know, what I expect of those who works for me. PRIORITIZING GOALS: With out conflict Based on resources (Time, Manpower, resources) Be concern with immediate plan without getting bogged down by the scale of the project. 18
  19. 19. “What ever a leader does, other people do. The very thing. What ever the upholds as authority, an ordinary person follows that”. - BHAGAVATGITA. KRISHNA TO ARUGUNA: If you runaway from this battle field, all others will also follow you. If you fail to do what is to be done, others will also do exactly that, because you are leader, whether you like it or not. - Set our Example. 19
  20. 20. Understanding lean 20
  21. 21. Understanding lean Lean: A systematic approach to identifying and eliminating waste {non- value-added activities) through continuous improvement in pursuit of perfection by flowing the product at the pull of the customer. Lean champion: Subject matter expert in the tools of lean typically chosen to lead lean training, lean projects, and lean transformation. Lean enterprise: Any organization that continually strives to eliminate waste, reduce costs, and improve quality, on-time delivery, and service levels. 21
  22. 22. Lean production: The opposite of mass production. Muda: A Japanese word, usually translated as “waste”, that refers to those elements of production that do not add value to the product. Takt Time: The available production time divided by the rate of customer demand. Takt time sets the pace of production to math the rate of customer demand and becomes the heartbeat of any lean system. 22
  23. 23. Example for takt time Time Available Minutes Shift 480 Breaks -10 Lunch -20 5S -10 Meetings -5 Changeover -220 Maintenance -5 Other -0 Total minutes 210 Total seconds 12600 Min 900 Demand Avg 1080 Max 1800 Takt time (Min) = 12600 900 Takt time (Avg) = 12600 1080 Takt time (Max) = 12600 1800 Min 14.0 Takt time Avg 11.7 Max 7.0 23
  24. 24. Business Process Improvement system 24
  25. 25. Ground Rules • Everyone participates • Anything is open to question • Look at issues from larger perspective • Ideas from anyone is respected • Talk to the ideas generated ; not the person • No complaining – unless accompanied with solution and action plan • No blaming 25
  26. 26. Leadership Vision • “Quality . . . is the next opportunity for our Company to set itself apart from its competitors . . . ... Dramatically improved Quality will increase employee and customer satisfaction, will improve share and profitability, and will enhance our reputation. ... “[Six Sigma] is the most important training thing we have ever had. It’s better than going to Harvard Business School.” J.F. Welch 26
  27. 27. Definition of a process A Process Is A Collection Of Activities That Takes One Or More Kinds Of Input And Creates Output That Is Of Value To The Customer 27
  28. 28. Processes All activity takes place in terms of a process.  The quality of the process determines the quality of the output. Shocking lessons  #1: Most people do not think in terms of processes. They would rather think terms of isolated events.  #2: When convinced of the value of thinking in terms of processes, most people still don‟t think in terms of processes  #3:The word “process” generates fear and resistance. 6 28
  29. 29. Strategic Focus “Voice Of The Customer” “Voice Of The Shareholder” Other Stakeholders (Surveys) (Profitability Analysis)  Employees  Lenders  Regulators Stakeholder Customer Requirements Prioritization Requirements Internal Processes And Output Measures Core Processes And Output Measures Key Subprocesses And Input Measures Supplier Quality Black Belt Projects 29
  30. 30. Levels of Process Core Process Equip. Order/ Pick-Up & Customer Billing (Level I) Mgmt. Leasing Delivery Service CSR Customer Branch Servicer CSR Verifies CSR Subprocesses Qualifies CSR Enters Calls For Schedules Fixes Customer Completes (Level 2) Customers’ Case In CIS Repair Repair Problem Satisfaction Case Needs Subprocesses Through Microprocesses (Level 3 And Below) 30
  31. 31. 3 Dimensions of Process The Dimensions Of Process Focus Management Process Management 31
  32. 32. BPMS What is BPMS? A nine step methodology designed to create ongoing accountability for managing entire cross-functional processes to satisfy process goals 32
  33. 33. BPMS Why BPMS ? • Proven methodology to optimize process performance • Establishes value-added metrics to assess process performance – takes the guesswork out of how a process is performing 33
  34. 34. BPMS •Assess your previous mission/goals Process Mission Statement Purpose: A. •Evaluate if your process boundaries have changed  Importance: Boundaries: Step 1: Create Process Mission •Adjust and make corrections Process Goals: Process Management System Process Owner Beginning Point End Point  Step 2:Document Process B. •Assess current CTQs and if they reflect process S I P O C •Assess if any new CTQs or measures are needed •Adjust and make corrections Verbatim Key Issue Process Requirement Step 3: Document Customer and  Process Requirements Operational Definitions CTQ Proc. Rqmt Output Proc Input Data Owner Definition Step 4:Identify Output and       Unit How Many DPU Process Measures  C. •Develop should be process map  Process Management System Step 5: Build Process •Create a simple data collection plan Management System Clarify Data Operational Definitions Step 6 Establish Data Collection  Validate Data Plan System Display 80 •Assess if current dashboards are representative UCL Step 7: Process Performance 70 60  50 D. •Collect Data and populate dashboards 40 LCL Monitoring 30 20 10 18- S ep 21- A ug 17- A pr 4- S ep 15- M ay 29- M ay •Assess performance against targets 3- A pr 0 1- M ay 10- Jul 24- Jul 12- Jun 26- Jun •Adjust and make corrections 25 20 15 Nov 10 $1,600 Step 8: Develop Dashboards with Sep 5 0 $1,400 Jul M ar M ay Jul Jan Jun Feb Sep Oct Nov Dec Apr Aug $1,200 May 10  $1,000 ar 9 M 8 Spec Limits and Targets Jan $800 7 0 5 10 15 6 $600 5 J a n M a r M a y J u l Se p No v 4 $400 3 2 $200 1 0 Jul Jan Jun Feb Se p Oc t No v De c Ma r Ap r Au g Ma y $0 J ul J an Sep Nov Mar May 0 5 10 15 •Develop actions to address variation Trend Problem Step 9: Identify Improvement  Chart Pareto E. Root Cause Corrective Actions Opportunities 34
  35. 35. Step-1 : Create Process Mission  Define process specific mission.  Mission statement of the plant  List out preliminary process goals  Measurable type  Attribute type 35
  36. 36. Step-2 : Define & Document the Process  Use SIPOC to define the process. Ready for all plants  Use flow charts to create & validate process maps. Yet to be incorporated Flowcharts are to be drawn on four different perspectives on a process What one think the process is. What the process really is. What the process could be. What the process should be. 36
  37. 37. Use SIPOC to define the process. Starting at the Top Key business activities can be defined at different levels of the organization: New Product Demand Demand Customer Level 1 development Fulfillment Service Generation Level 2 Ordering Producing Picking Shipping Materials Level 3 Mixing Filling Sealing Packing  Level 1 = highest -level view of work in the organization  Level 2 = work that flows across several departments or within a n entire department or work area  Level 3 = a detailed view of of a particular process 30 37
  38. 38. Which Flowcharting Technique Should I use? Basic Activity Deployment Flowchart Flowchart Flowchart To identify the major To display the To help highlight steps of the process complexity and handoff areas in and where it begins decision points of a processes between and ends process people or functions To illustrate where in To identify rework To clarify roles and the process you will loops and bottlenecks indicate dependencies collect data 35 38
  39. 39. Types of Flowcharts Useful for Understanding Process Flow  Activity  Deployment flowcharts flowcharts Sales Technical Shipping Coordinator 31 39
  40. 40. Activity Flowcharts Hotel Check-out Process Process Name 1 2 YES Is there 3 Approach front desk Wait a line? Clear direction of Activity flowcharts are Numbered NO flow (top to bottom or 4 specific about what happens steps Step up to desk left to right) in a process. They often 5 Clerk NO 6 capture decision points, Key of symbols available? Wait rework loops, complexity, YES 7 Consistent etc. Start/End Give room number level of detail Action/Task 8 Check bill Decision 9 Charges NO 10 Sequence correct? Correct charges YES 11 Clear starting Pay bill and ending Date of creation points or update & name of creator 40
  41. 41. Deployment Flowcharts People or groups Deployment flowcharts show listed across the top Invoicing Process the detailed steps in a Sales Billing Shipping Customer Elapsed Time process and which people Steps listed in 1 Delivers goods Time flows column of person or down the or groups are involved in group doing step or 2 8 page Notifies sales of Receives in charge each step. They are completed delivery delivery 5 days 9 particularly useful in 3 Sends invoice to customer Records receipt and claims against this delivery processes that involve the 10 days 4 10 flow of information Notifies billing of invoice Receives invoice between people or 5 Files invoice 11 Checks invoice against receipt functions, as they help 12 Pays bill highlight handoff areas. 6 Receives and records payment Horizontal lines 7 clearly identify Reviews weekly report of overdue handoffs accounts 41
  42. 42. Value - Added and Nonvalue - Added Steps Value-Added Step:  Customers are willing to pay for it.  It physically changes the product.  It‟s done right the first time. Nonvalue-Added Step:  Is not essential to produce output.  Does not add value to the output.  Includes: • Defects, errors, omissions. • Preparation/setup, control/inspection. • Over-production, processing, inventory. 43 • Transporting, motion, waiting, delays. 42
  43. 43. How to Create an Opportunity Flowchart Value-Added Steps Nonvalue-Added Steps  Divide page into Loop two sections Yes • Value -added Yes section smaller Loop than cost-added- only section No No  Time flows down the page  Only join two Value - Loop Yes Added steps with an No arrow if there are no Nonvalue -Added steps in between 47 43
  44. 44. Step-3 : Document Customer & Process Requirements  Types of customers.  Translating VOC into specific requirements. this is the place for defining the QFD 44
  45. 45. VOC Process 1. 2. 3. 4. 5. Identify Collect and Analyze data Translate Set customers analyze to generate the customer specifications and determine reactive a key list language for CTQs what you need system data of customer into CTQs to know then fill gaps needs in with proactive their language approaches Outcomes:  A list of customers and customer segments  Identification of relevant reactive and proactive sources of data  Verbal or numerical data that identify customer needs  Defined Critical-to-Quality requirements (CTQ)  Specifications for each CTQ 7 45
  46. 46. What is Critical to Quality What is Critical to Quality (CTQ)?  What a customer tells us they want from our product / service or process output  CTQs are rendered from Voice of Customer (VOC)  CTQs must be specific  CTQs must be measurable  CTQs must be actionable  CTQs always have three elements:  CTQ Category (also known as an Output Characteristic or CTQ name, e.g. Claims Processing Timeliness)  Customer Specification (customer’s requirement of our product/ service or process, e.g. “30”)  Unit of Measure (how output is quantified by the customer, e.g. “Days”) CTQ Example: Claims Processing Timeliness: 30 Days Category Specification Unit of Measure 46
  47. 47. Example: CTQ Tree One of 7 Management Tools – Tree diagram Need Drivers CTQs Low qualification of operator Operation Easy to setup (training / documentation) Digital Control MTBF Ease of Operation Maintenance Maintenance and Maintenance Cost Down time Modification Mistake Proofing and Documentation Standardization Minimum special tools / equipment required General Specific Hard to measure Easy to measure 23 47
  48. 48. Establishing a Performance Standard • A performance standard translates customer needs into quantified requirements for our product or process Product/ Process % Trained Characteristic No. Trained against no. Customer Measure identified for training in a Need chosen subject CTQ Better Target 95 % Throughput Specification/ Tolerance 90% Limit(s) Defect Definition Below 90% 48
  49. 49. BPMS Step 3 – Document Customer/Process Requirements VOC Guidelines Internal Voice of Customer After Clarifying, the CTQ Customer Sample CTQ’s Key Issue(s) Is... Requirements Customers Reliability Leadership Durability Process Owners Accuracy Stakeholders Timeliness Failure Recovery External Efficiency Customers Cost Savings Easy to Use Clients Quick Response Consumers Regulators Brokers VOC Translation Process Your Voice of Customer Key Issues CTQ’s Outputs Customer Requirements Outputs of your Customer needs are Clarification of the Defined as customer Key issues are process are designed stated in the language customer’s language performance translated into to satisfy customer of the customer identifies the key requirements of a customer needs profitably issues product or service requirements 49
  50. 50. Step 3 – Document Customer/Process Requirements VOC Guidelines After Clarifying, the Customer Voice of Customer CTQ Key Issue(s) Is... Requirements 50
  51. 51. BPMS Step 4 – Identify Output/Process Measures: Measurement Matrix Guidelines C T Q T ree T em plate CTQ S p e c ific C T Q M in im u m M a x im u m O u tp u t P ro c e ss In p u t K ey Issu e C u sto m er T a rg e t L o w er S p ecificatio n U p p er S p ecificatio n M easu rem en ts M easu rem en ts M easu rem en ts R eq u irem en t L im it (L S L ) L im it (U S L ) Process Measurement Criteria •The measure must be important •The measure must be easy to understand •The measure is sensitive to the right things and insensitive to other things •The measure promotes appropriate analysis/action •The measure must be easy to get 51
  52. 52. CTQ Template C T Q T ree T em plate CTQ S p e c ific C T Q M in im u m M a x im u m O u tp u t P ro c e ss In p u t K ey Issu e C u sto m er T a rg e t L o w er S p ecificatio n U p p er S p ecificatio n M easu rem en ts M easu rem en ts M easu rem en ts R eq u irem en t L im it (L S L ) L im it (U S L ) 52
  53. 53. BPMS Step 5 – Build Process Mgmt. System Objectives: Consolidate work performed in steps 1-5 onto one concise page which captures the essence of your process. Establish process specs/targets, control limits, and response plan for out-of-control/under- performing metrics. Why Is This Important?: A process management system allows a process owner to quickly respond to performance trends. It is an enabler for process optimization. Tools : Control Plan 53
  54. 54. Step-5 : Build Process Management System  Measures & Targets.  Monitoring System.  Contingency Plan. 54
  55. 55. Process Management System Process Description: Process Customer : Customer Requirements : Outcome Quality Indicators : Process Flow Chart Checking Measure Remarks Target SOP/SOC/ LSL Checking Contingency Document Desc. USL Item Frequency Resp. plan no. Y1 Y2 Y2.1 X1 X2 X2.1 55
  56. 56. BPMS Step 6 – Establish Data Collection Plan Guidelines Reporting Frequency of Measures Sampling Plan (Daily, Upper Lower Operation Green Yellow Red (what, where, Weekly, Spec Spec Definition of Calculation/ Calculation/ Calculation/ Data Display when, how Measures Monthly) Limit Limit Metric Definition Definition Definition Data Type Owner Method many) Data Collection Roadmap Develop Continue Plan for Data Operational Begin Data Improving Consistency Definitions & Collection Measurement & Stability Procedures Consistency • Operational Definitions • Creating Monitoring • Validating Measurement Systems • Collecting Data • Training Data Collectors Procedures • Sampling • Making Data Collection Activities “Error Proof” 56
  57. 57. Data Collection Plan Reporting Frequency of Measures Sampling Plan (Daily, Upper Lower Operation Green Yellow Red (what, where, Weekly, Spec Spec Definition of Calculation/ Calculation/ Calculation/ Data Display when, how Measures Monthly) Limit Limit Metric Definition Definition Definition Data Type Owner Method many) 57
  58. 58. BPMS Step 6 – Establish Data Collection Plan Guidelines Decision to Decision to Collect New Data Sample • Is there existing data to help with problem • It is often impractical or too costly to collect all solving mission? of the data • Is current data enough? • Sound conclusions can often be drawn from a • Does the current data meet the process needs? relatively small amount of data • Is the team just using data that is available? One BB to finalise sampling strategy Validating Data Collection Measurement Systems Considerations • Data is only as good as the measurement system • Can the new data be generated through systems used to gather it. Measurement systems must be modifications? validated to ensure data is free from errors • Can data collection be integrated into existing • There are a variety of techniques to validate data work processes? – consult a Quality representative or refer to your • Is all data being collected necessary to calculate six sigma training process measures? • Review the measurement system periodically to • Can some data collection efforts be curtailed ensure consistency and stability over time because they don’t add value? 58
  59. 59. BPMS Step 7 – Process Performance Monitoring Guidelines Variation Over A Variation Over Type of Data Period of Time Time Pareto Diagram Run Charts Discrete Bar Charts Control Charts Pie Charts Histograms Run Charts Continuous Box Plots Control Charts Multi-Vari Charts Upper Control Purpose of Control Charts Limit •Determine whether or not process variation is due to special cause or common cause variation Average •Determine whether the process is in control or out of control Lower Control Limit Time 59
  60. 60. Process Performance Monitoring  All Repetitive activities of a process have a certain amount of fluctuation .  Input, Process & Output measures will fluctuate.  Variation is the „Voice of the Process‟ – Learn to Listen to it and Understand it. 60
  61. 61. BPMS Step 7 – Process Performance Monitoring Charts Individuals Control Chart for Weekly Requistion Sigma Defective Rate, DPMO, and Sigma for Purchase Order Request Process 700000 4.50 4.0 3.0SL=3.939 4.00 600000 3.50 Defective Rate/DPMO 500000 3.00 400000 Sigma 2.50 300000 2.00 3.5 X=3.448 1.50 Sigma 200000 1.00 100000 0.50 0 0.00 9/28/0 10/5/0 10/19/ 10/26/ 11/9/0 11/16/ 11/30/ 12/7/0 12/14/ 12/28/ 1/18/0 1/25/0 2/15/0 2/22/0 3/15/0 3/29/0 1/4/02 2/1/02 3/8/02 1 1 01 01 1 01 01 1 01 01 2 2 2 2 2 2 3.0 -3.0SL=2.958 Defectives per Million 63809 34574 38271 30000 11842 16666 14814 17613 16000 25000 31147 22413 71429 30833 0 0 0 0 0 DPMO 70899 46099 43896 34921 24123 17490 16461 10101 8889 34722 38251 23946 7937 33333 0 0 0 0 0 Sigma 2.97 3.18 3.21 3.31 3.48 3.61 3.63 3.82 3.87 3.32 3.27 3.48 3.91 3.33 0 10 20 Week Ending Week of Defectives per Million DPMO Sigma Measurement 61
  62. 62. BPMS Step 8 – Develop Dashboards Guidelines Dashboard Creation Roadmap Key Considerations Identify Universe of Potential Measures • How do you want the information displayed? • To what level do you want to drill Narrow List of down in the information? Measures • How might you want to segment the information for making critical decisions? Data Collection • Who should access the information? • What supporting information do Determine Measures you want to see? w/Best Relationship • Lower level dashboards should to CTQ’s roll-up to higher level dashboards. Finalize Dashboard 62
  63. 63. Step 9 – Operate Process Management System & Identify Improvement Opportunities External Continue Environmental Control Information Actions Yes No Plan/Implement Dashboard Process Satisfied with Improvement Indicators Indicators? Actions to Review Correct Internal Environmental QC/SGA/ Information Quick Hit/ No Action Troubleshoot DMADV DMAIC Identify Problem Process Improvement Process Redesign Diagnose Root Cause (process not capable Remedy Cause of performing to standards) 63
  64. 64. Process Management Chart Process Name : Process Owner : Date : Process Map Monitoring Response Plan Target Data Process USL collection Immediate Improvement Measures LSL method Control/Fix projects 64
  65. 65. Project Y Alignment Key output metrics that are Business Big Y’s aligned with strategic goals/objectives of the business. Big Y’s provide a direct measure of business performance. Process Y’s Y PROCESS Y Key output metrics that Y summarize process Management Y performance Project Y Key project metric defined from the customer’s perspective X1 X2 X3 Any parameters that influence the Y 65
  66. 66. Project Identification Customer wants and needs should drive our actions!  Who’s the customer?  What’s the business  What does he/she strategy? think is critical to  Who in the business quality? holds a stake in this?  Who speaks for the  Who can help define customer? the issues?  What are the processes involved? 66
  67. 67. A GreAt Project Should…  Be clearly bound with defined goals If it looks too big, it is  Be aligned with Strategic Business Objectives and initiatives It enables full support of business  Should have high Impact the Bottom Line  Be felt by the customer There should be a significant impact  Work with other projects for combined effect Global business initiatives  Show improvement that is locally actionable  Relate to your day job  Focus on key CTQ’s 67
  68. 68. Selecting the Right Projects Delivered CTQ Importance High Impact Medium Impact Low Impact Six issues in selecting a project: Low Medium High  Process Performance  Feasibility (Is it doable?)  Measurable impact  Potential for improvement  Resource support within the organization  Project interactions Top priorities based on impact and performance: strategic issues 68
  69. 69. Project Prioritization Matrix The desirability of a project increases as you move from the lower right to the upper left, and as the circle gets larger Hi Probability of Success IMPACT Low Med Med Low Hi Low Med Hi EFFORT 69
  70. 70. Project Selection • Success Factors – Project scope is manageable – Project has identifiable defect – Project has identifiable impact – Adequate buy-in from key stakeholders • To Be Successful… – Set up project charter and have it reviewed – Measure where defects occur in the process – Assess and quantify potential impact up front – Perform stakeholder analysis • Common Pitfalls – Inadequately resourcing the project – Duplicating another project – Losing project momentum – Picking the easy Y, not the critical Y • Avoiding Pitfalls – Identify and get committed resources up front – Research the project database and translate from other projects where possible – Set up milestones and a communications plan 70
  71. 71. A Good Project A good project: – Problem and Goal Statements are clearly stated – Defect and opportunity definition is clearly understood – Does not presuppose a solution – Clearly relates to customers and their requirements – Aligns to the business strategy – Uses the tools effectively – Is data driven 71
  72. 72. A Bad Project A bad project: – Is not focused–scope is too broad – Is not clear on what you are trying to fix – May be an already-known solution mandated without proper investigation – Is difficult to see linkage to customer needs – Is not clearly aligned with business objectives – Has little or no use of tools – Is anecdotal–not data driven 72
  73. 73. Project Chartering A Charter: – Clarifies what is expected of the team – Keeps the team focused – Keeps the team aligned with organizational priorities – Transfers the project from the Champion to the improvement team 73
  74. 74. Five Major Elements Of A Charter 1. Business Case Explanation of why to do the project 2. Problem and Goal Statements Description of the problem/opportunity and objective in clear, concise, measurable terms 3. Project Scope Process dimensions, available resources 4. Milestones Key steps and dates to achieve goal 5. Roles People, expectations, responsibilities 74
  75. 75. The Goal Statement The Goal Statement then defines the team’s improvement objective Specific Definition of the improvement the Measurable team is seeking to accomplish? Starts with a verb (reduce, Attainable eliminate, control, increase) Tends to start broadly - eventually Relevant should include measurable target and completion date Must not assign blame, presume Time Bound cause, or prescribe solution! 75
  76. 76. 8 Steps To Bind A Project 1. Identify the customer – Who receives the process output? (May be an internal or external customer) 2. Define customer expectations and needs – Ask the customer – Think like the customer – Rank or prioritize the expectations 3. 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 76
  77. 77. 8 Steps To Bind A Project 4. 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 5. Map your process – Map the process as it works today (as is) – Map the informal processes, even if there is no formal, uniform process in use 6. Determine where in the process the CTQ’s can be most seriously affected – Use a detailed flowchart – Estimate which steps contain the most variability 77
  78. 78. 8 Steps To Bind A Project 7. 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 8. Define the project to improve the CTQ’s you have selected – Define the defect to be attacked 78
  79. 79. Project Selection Workshop 2 Ways : • Top- down method – More effective & High impact projects. (Through CTQ selection workshop) • Bottom-up method – Low impact & High numbers of projects 79
  80. 80. CTQ Selection Workshop List down the Strategic Business Objectives List down the Key Focus Areas to achieve the SBOs Prioritize the KFAs List down the core processes List the impact of the core processes on the KFAs Rank and prioritize the core processes List down the performance indicators for the prioritized list of core processes Rank and Prioritize the CTQs Generate projects list from CTQs 80
  81. 81. CTQ Selection Workshop Step 1 - List down the Strategic Business Objectives & Key focus areas of your plant/deptt. Sl.No SBO’s KFAs Wtg 1 2 3 81

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