This document defines the deliverables for a project to improve the computer delivery time process. Deliverable 2 involves defining the project boundaries, which includes writing a problem statement identifying the defect as computers being delivered in 11 days on average versus the 10 day goal, drafting a project charter with details of the scope, timeline and benefits, and setting a goal of decreasing the delivery time to 9 days by a target date. It provides guidance on tools to use for each deliverable such as a SIPOC, inclusion/exclusion list, and elevator speech.

1. Define Project Boundaries Deliverable 2D

2. Define Module Roadmap Define 1D – Define VOC, VOB, and CTQ’s 2D – Define Project Boundaries 3D – Quantify Project Value 4D – Develop Project Mgmt. Plan Measure 5M – Document Process 6M – Prioritize List of X’s 7M – Create Data Collection Plan 8M – Validate Measurement System 9M – Establish Baseline Process Cap. Analyze 10A – Determine Critical X’s Improve 12I – Prioritized List of Solutions 13I – Pilot Best Solution Control 14C – Create Control System 15C – Finalize Project Documentation Green 11G – Identify Root Cause Relationships

3. Deliverables – Define # Deliverable Deliverable Concept & Tasks Primary Tool(s) Secondary Tool(s) 1D Define VOC, VOB and CTQs A project is started because a customer (internal or external) needs some problem to be solved. Deliverable 1D obtains customer input to understand the problem(s) that the customer is experiencing so that a project can be started. In addition to defining the problem, we also need to understand how the customer defines product acceptability (specifications). VOC Worksheet Affinity Diagram Stratification tools (Pareto and other basic graphs) 2D Define Project Boundaries Once we understand the defect that needs to be improved (project Y), define the project boundaries and components of the project. This includes a well written problem statement, identifying what process produces the defective item, how much improvement we will make, when it will be done, etc. This information is summarized in the project charter. Portions of deliverables 3D and 4D will also be on the charter. Project charter SIPOC Included / Excluded Elevator Speech 3D Quantify Project Value Determine the benefit to the customer and to JEA for improving the process. Internal customer benefits are typically hard or soft $ savings, productivity improvements, and employee satisfaction. External customer benefits are typically customer retention, customer satisfaction, and price and/or share increase. Deliverable 3D documents these benefits. Project Benefit Document 4D Develop Project Management Plan To effectively manage a project, the GB/BB needs to identify team members, effectively interface with the project stakeholders, plus develop and manage to a project plan (milestones and timelines). This plan should be developed and shared with all stakeholders. ARMI Project plan Fist of five Faces of resistance Stakeholder analysis Influence strategy 3D’s V1.2

4. 2D - Define Project Boundaries # Deliverable Deliverable Concept & Tasks Primary Tool(s) Secondary Tool(s) 2D Define Project Boundaries Once we understand the defect that needs to be improved (project Y), define the project boundaries and components of the project. This includes a well written problem statement, identifying what process produces the defective item, how much improvement we will make, when it will be done, etc. This information is summarized in the project charter. Portions of deliverables 3D and 4D will also be on the charter. Project charter SIPOC Included / Excluded Elevator Speech Steps to Complete Deliverable: Use the VOC, VOB, and CTQ information from deliverable 1D, complete the Project Charter CTQ section. Draft a Problem Statement containing the 4 key elements and enter this on the Project Charter. Use the SIPOC, Included/Excluded, and Elevator Speech tools as needed to further refine the Project Scope. Complete the Goal Statement and Process Map Number sections of the project charter. Enter the Process Capability, Project Stakeholders, Project Timeline and Estimated Benefits information if available. If unknown at this point, enter and/or update these during deliverables 3D, 4D, and 9M. Although deliverables 3D and 4D are listed as subsequent deliverables to 2D, the information from 3D and 4D is reflected in the project charter of 2D. As such, all three deliverables are often pursued simultaneously instead of sequentially.

5. Objectives – Define Project Boundaries Upon completing this module, students should be able to: Name the 4 elements of a problem statement Construct a problem statement from “real world” data Create a SIPOC Create an Included/Excluded worksheet Create an elevator speech Construct a goal statement from “real world” data Apply the green, yellow, and red color codes to the project cycle time section of the project charter Fill in a blank charter using information from this and other modules

6. Process Improvements Should “everything” be a DMAGIC project? NO!! Existing Processes Some solutions are so obvious they are “go-do’s” DMAGIC is a methodology to improves existing process when a solution isn’t obvious or when multiple solutions exist Mgmt. directive to use a specific solution for various reasons New Processes Processes that don’t exist are DFSS (DMADV) candidates When a process can not be further improved because it has reached it’s underlying mechanical limitations (entitlement), capital project improvements are often required (also DMADV)

7. A Good DMAIC Project: Improves an existing process Identify a process Q or P in your area that needs improvement Management is responsible for making processes run better, faster, etc. TargetSmart should not be something “in addition to” this responsibility. It is a methodology to do this work better. Has a single defect Avoid projects “to fix this, and this, and this,…” Does not have an “obvious” solution Can obtain data frequently Is important to the business (you/Champion/VP/etc.) Can be completed in 2-5 month’s

8. A Poor DMAGIC Project: Has multiple and/or unclear defects listed (GB/BB and team is confused on what to fix and gets bogged down) Already has a solution (a “go-do” project) “ My project is to implement/create a new _____” “ The lack of a ____ causes ____” Is a series of known tasks to be executed “ My project is to research ____, perform a cost analysis and …” Is not important to the business (lack of urgency) Has slow/hard to get data (hard to show improvement quickly) Uses cost as the defect (vs. the true underlying defect) Is outside your area (low team motivation) Is scoped too large or small (too complex/waste of team’s time) Most Common Less Common

9. Why Not Use Cost as a Defect? High cost is certainly a valid reason to identify processes for improvement. However, excess cost (COPQ) is usually a result of the process defect, not the defect itself. e.g. Process “A” and “B” both cost $200k/yr to run. Which has the higher Cost of Poor Quality? Which do you improve first? (If $ on a cost sheet were the only concern, we would work both) Processes with no defects still cost money to operate Consider a process that has been improved to the point of > 6  operation but has a cost of $195k/yr. 2 years later, inflation raises this “perfect” process to above the desired $200k/yr cost. Has the defect returned? How do we improve the process?

10. Why Have a Project Charter? A Project Charter Describes… The Purpose and Plan for the project What is the defect The scope of the project The process to be improved The Improvement goal Estimated project benefits Key players and their roles

11. Why Have a Project Charter? A Project Charter Helps… Develop clarity on the project Provide Direction for the team Keep the team “on task” Avoid “mission creep” Provide an evergreen roadmap for the project Where is the Project Charter template? 15 Deliv template.ppt

12. Project Charter {Project Name & No. Here} Assigned Define Measure Analyze Green Improve Control Sched Date Date Date Date Date Date Date Actual Date Date Date Date Date Date Date Process Map Number: Number here Black Belt: Name here Process Owner: Name here Champion: Name here Implementation Coordinator : Name here Data Coordinator : Name here Team Members: Name & function here Name & function here Name & function here Name & function here Name & function here Expected Benefits: Hard Savings –$ xxx K Soft Savings –$ xxx K Other Benefits: List benefit here List benefit here Project Timeline: Customer CTQ(s): Describe customer CTQ (customer need/defect and spec limit.) Problem Statement : List the 4 elements of a problem statement: * Defect identification * Magnitude of the defect (events/unit time, etc) * Where is the defect (location/group/segment) * Why this project is important to work now ($, strategy support, etc) Project Scope: List project/process boundaries here Goal Statement: Increase(/decrease) the {primary metric} from {baseline state} to {improved state} by {date} without negatively impacting {secondary metric}. Baseline Metric Performance ( Time frame here ): Short Term Long Term Zbench x.x x.x DPMO xxxxxx xxxxxx 15 Deliv template.ppt

13. Deliverable 2: Define Improve Computer Delivery Time Proj. No. 12345 Assigned Define Measure Analyze Green Improve Control Sched 7/1/08 7/15/08 8/30/08 9/30/08 10/7/08 10/20/08 11/20/08 Actual 7/1/08 7/12/08 9/5/08 9/28/08 Process Map Number: 1234 Black Belt: I. Cantwait Process Owner: Weneedta Getbetter Champion: Ima Gonnahelp Implementation Coordinator : Iwill Putinplace Data Coordinator : Ilove Numbers Team Members: John – Installer Paul – Installer George – Supervisor Ringo - Purchasing Expected Benefits: Hard Savings – $15 K Soft Savings – $225 K Other Benefits: Internal Customer Satisfaction Scores Project Timeline: Customer CTQ(s): Configured computer delivered to new employee within 10 working days Problem Statement : From 7/1/07 through 6/30/08, new JEA employees located in downtown Jacksonville received their configured laptop/desktop computer at an average of 11.0 days (standard deviation = 2.04) vs. a 10 day USL. This translates to an estimated productivity loss of $225K/yr. Project Scope: Includes new hires and transferred employees to the downtown tower and CCC. Excludes all other locations or electronic Goal Statement: Decrease the average computer delivery time from 11.0 days to 9.0 days by 11/20/08 without negatively impacting new computer inventory or expediting costs. Baseline Metric Performance (7/07-6/08) : Short Term Long Term Zbench -0.72 -0.50 DPMO 763,253 692,088 Example charter for project in Green phase

14. Deliverable 2: Define; SIPOC Suppliers Inputs Process Outputs Customers ?? ?? Process Description ?? ?? ?? ?? ?? ?? Process Steps Project Boundary Project Boundary ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??

15. Problem Statement

16. Project Charter {Project Name & No. Here} Assigned Define Measure Analyze Green Improve Control Sched Date Date Date Date Date Date Date Actual Date Date Date Date Date Date Date Process Map Number: Number here Black Belt: Name here Process Owner: Name here Champion: Name here Implementation Coordinator : Name here Data Coordinator : Name here Team Members: Name & function here Name & function here Name & function here Name & function here Name & function here Expected Benefits: Hard Savings –$ xxx K Soft Savings –$ xxx K Other Benefits: List benefit here List benefit here Project Timeline: Customer CTQ(s): Describe customer CTQ (customer need/defect and spec limit.) Problem Statement : List the 4 elements of a problem statement: * Defect identification * Magnitude of the defect (events/unit time, etc) * Where is the defect (location/group/segment) * Why this project is important to work now ($, strategy support, etc) Project Scope: List project/process boundaries here Goal Statement: Increase(/decrease) the {primary metric} from {baseline state} to {improved state} by {date} without negatively impacting {secondary metric}. Baseline Metric Performance ( Time frame here ): Short Term Long Term Zbench x.x x.x DPMO xxxxxx xxxxxx This is our focus

17. What is a Problem Statement? The Problem Statement is a crisp description of the customer/business problem or opportunity available Will be directly linked to the VOC, but may or may not use the same units of measure as the VOC e.g. A project to reduce customer hold time may measure the defect as wait time (continuous) or proportion waiting over 4 min. (discrete) The Problem Statement does NOT contain: Proposed solutions or a statement of the suspected key X(s) A description of the project goal performance level The project performance goal is described in the goal statement. The project goal may or may not be identical to the customer specifications.

18. Problem Statement Elements There are 4 parts to a well written problem statement: Defect identification Incorrect billing quantity, excessive cycle time, etc. Magnitude of the defect Proportion defective, Avg. cycle time vs. goal, etc. Where is the defect Location, affected group, market segment, etc Why this project is important to work now Financial gain, strategy support, etc.

19. Building A Problem Statement Defect identification (describe the defect to be improved) e.g. 1: Excessive customer wait time e.g. 2: Low pH probe life Magnitude of the defect (events/unit time, etc) e.g. 1: 12% of Customers wait time exceeds 4 minutes e.g. 2: pH probes currently last an average 25 days vs. the desired 60 days before failure

20. Building A Problem Statement Where is the defect (location/group/segment) e.g. 1: 12% of Customers calling (800-xxx,xxxx) have a wait time exceeding 4 minutes e.g. 2: pH probes placed in effluent water service at NGS currently last an average 25 days before failure Why this project is important to work now ($, strategy support, etc) e.g. 1: 12% of Customers calling (800-xxx,xxxx) have a wait time exceeding 4 minutes. This project needs to be pursued at this time in order to support current strategy goals. e.g. 2: pH probes placed in effluent water service at NGS currently last an average 25 days before failure. This represents a COPQ of $200k/yr.

21. Example Problem Statements The 0.34ppm Chlorine standard deviation of the water arriving at the customer’s house is excessive. COPQ from this defect is $25k/yr plus poor customer satisfaction related to occasional high Cl 2 odor/taste. What makes this a good example? The variability of the water leaving Ridenour is high. Customers complain of Chlorine smell at times, and Sulfur smell at times. We need to improve this by increasing the degassing time. What makes this a poor example?

22. Problem Statement Exercise Form into teams of 3-4. Select one of the team member’s project and create a Problem Statement for that process Alternative: Rewrite the following into a proper Problem Statement No matter how many times employees have been reminded, they don’t seem to remember to wear their safety glasses while at Buckman. Records from March and April show that employees wore their safety glasses only 70% of the time that they should, and there doesn’t seem to be any effort to improve. 10 Min

23. Project Scope - Description 23

24. Project Charter {Project Name & No. Here} Assigned Define Measure Analyze Green Improve Control Sched Date Date Date Date Date Date Date Actual Date Date Date Date Date Date Date Process Map Number: Number here Black Belt: Name here Process Owner: Name here Champion: Name here Implementation Coordinator : Name here Data Coordinator : Name here Team Members: Name & function here Name & function here Name & function here Name & function here Name & function here Expected Benefits: Hard Savings –$ xxx K Soft Savings –$ xxx K Other Benefits: List benefit here List benefit here Project Timeline: Customer CTQ(s): Describe customer CTQ (customer need/defect and spec limit.) Problem Statement : List the 4 elements of a problem statement: * Defect identification * Magnitude of the defect (events/unit time, etc) * Where is the defect (location/group/segment) * Why this project is important to work now ($, strategy support, etc) Project Scope: List project/process boundaries here Goal Statement: Increase(/decrease) the {primary metric} from {baseline state} to {improved state} by {date} without negatively impacting {secondary metric}. Baseline Metric Performance ( Time frame here ): Short Term Long Term Zbench x.x x.x DPMO xxxxxx xxxxxx This is our focus

25. What is Project Scope? The Project Scope statement describes the boundaries of the process the project will improve Provides a common understanding among the stakeholders of what is and is not included in the project Project Scope will describe items such as: Which locations are involved e.g. Includes NGS, excludes SJRPP Which groups are involved e.g. Includes new service customers, excludes all others Which process steps are involved e.g. Includes the process steps associated with routine billing, excludes establishing new service and discontinuing existing service

26. Why is Project Scope Important? Projects with appropriate scope move quickly Projects with large scope (“Boil the Ocean”) rarely proceed smoothly As project scope increases: “ Success” often requires fixing more than one defect “ Success” requires a different solution to the same defect at different locations – multiple improvement strategies, multiple control plans, multiple training programs, etc. Project Cycle time increases!!! Six Sigma, the Belt leading the project, and the team as a whole are viewed as slow and ineffective

27. When Do You Manage Scope? Project Assignment When a project is first assigned, clearly defining the defect and project scope are vital! Most other define phase work (team selection, COPQ, project timeline, etc.) are determined by these. Early Define Phase Meetings Early team meetings are often filled with energy to fix more than one defect “while we are at it”. Be wary of “scope creep”! Mid-project changes Mid-project scope reductions are sometimes difficult to accomplish. Process Owners and Champions are expecting success on the original scope. They can leave stakeholders feeling “the job wasn’t done right”.

28. Determining Project Scope Defining the project scope begins in Deliverable 1 with project Y data stratification & segmentation. It is appropriate to refine it in Deliverable 2. e.g. Is the project about reducing the proportion of customers who do not pay their bills within 30 days, or reducing the proportion the customers whose payments are late enough to reach service termination (a subset of customers who do not pay within 30 days)?? Use the following tools to refine project scope SIPOC Included/Excluded Elevator speech

29. Project Scope - SIPOC

30. What is a SIPOC? SIPOC is an acronym standing for “Suppliers, Inputs, Process, Outputs, Customers” A SIPOC is a high level map of the process which will be improved (could also be described as a map of the process generating the defect of concern) 30 ©2006, JEA™; All Rights Reserved S U P P L I E R S C U S T O M E R S Outputs Inputs Process

31. 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 in 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.

32. Why Create a SIPOC Map? To develop a high-level view of the process To avoid scope creep To highlight areas for improvement To ensure customer focus

33. SIPOC Definitions Supplier: Internal or External - whoever provides the input to your process Input: The item (tangible entity or data) that a process uses to produce an output Process: A repetitive and systematic series of actions or operations whereby an input is used to achieve an outcome, product, or defined goal Output: The material or data that results from the operation or a process Customer: Internal or External - whoever receives the output of your process

34. SIPOC: Inputs Labor Material Ideas Information Environment Process

35. SIPOC: High-Level Process View A high-level view is often captured as a top-level flowchart Process Step 1: Bottling Step 2: Labeling Step 3: Inspecting Step 4: Packaging

36. SIPOC: Outputs Process Physical products Documents Information Services Decisions

37. SIPOC Components Suppliers/Inputs Where does the information or material you work on come from? Who are your suppliers? What do they supply? Where do they affect the process flow? What effect do they have on the process and on the outcome? Process steps What happens to each input? What conversion activities take place? Outputs What product does this process make? What are the outputs of this process? At what point does this process end? Customers Who uses the products from this process? Who are the customers of this process?

38. How to Create a SIPOC Name the process Brainstorm and identify the process steps Identify, name and order the major process steps Clarify the start and the stop (boundaries) of the process List key inputs and suppliers List key outputs and customers Remember – the purpose of a SIPOC is to define project boundaries, not describe the process in detail. A full process map will be developed in Measure.

39. SIPOC Example Suppliers Inputs Process Outputs Customers Copier Toner Electricity Original Yourself Power Company Office Supply Company Copies Manufacturer Making a photocopy You File Others Put original on glass Close Lid Adjust Settings Press START Remove originals and copies Process Steps Paper Boundary Boundary 15 Deliv template.ppt

40. SIPOC Exercise Form into teams of 3-4. Select one of the team member’s project and create a SIPOC for that process 20 Min Tip – Sticky notes work very well when creating a SIPOC. It allows the team to brainstorm and rearrange items with minimal effort.

41. Project Scope – Included/Excluded

42. “ Included/Excluded” Description The Included/Excluded worksheet is a tool to facilitate discussion of the project boundaries Can be used in conjunction with a SIPOC Instructions to complete the “Included/Excluded” worksheet: Complete the worksheet in a team meeting Main value comes from team discussion & consensus Answer the What, Where, When, Who questions in sequence “ Other” is for any miscellaneous entries

43. Included/Excluded INCLUDED What __________________ Where _________________ When __________________ Who ___________________ Other __________________ EXCLUDED _____________________ _____________________ _____________________ _____________________ _____________________ 15 Deliv template.ppt

44. Example - Included/Excluded INCLUDED What __________________ Where _________________ When __________________ Who ___________________ Other __________________ EXCLUDED _____________________ _____________________ _____________________ _____________________ _____________________ Grease related SSO’s All other SSO’s Southside All other areas No time periods excluded All time periods included Restaurant locations Commercial and Residential locations n/a n/a

45. Included/Excluded Exercise Form into teams of 3-4. Select one of the team member’s project and create an Included/Excluded worksheet for that project 15 Min

46. Project Scope – Elevator Speech

47. What is an Elevator Speech? An Elevator Speech is a concise verbal description of what the project is about. Imagine getting on an elevator with an EMT member and they ask about your most recent project. You have only a few seconds to describe your project, so you must be brief and to the point. What would you say? Example Elevator Speech: “ My team and I have a project to reduce the number of demurrage days incurred to offload solid boiler feed products at NGS. Over the past year, JEA experienced 20 demurrage days. Our goal is to reduce this to two days per year or less by 12/1/08 for a savings of ~$45k/yr.”

48. Elevator Speech Exercise Form into teams of 3-4 Create an Elevator Speech for each member’s project 20 Min

49. Goal Statement

50. Project Charter {Project Name & No. Here} Assigned Define Measure Analyze Green Improve Control Sched Date Date Date Date Date Date Date Actual Date Date Date Date Date Date Date Process Map Number: Number here Black Belt: Name here Process Owner: Name here Champion: Name here Implementation Coordinator : Name here Data Coordinator : Name here Team Members: Name & function here Name & function here Name & function here Name & function here Name & function here Expected Benefits: Hard Savings –$ xxx K Soft Savings –$ xxx K Other Benefits: List benefit here List benefit here Project Timeline: Customer CTQ(s): Describe customer CTQ (customer need/defect and spec limit.) Problem Statement : List the 4 elements of a problem statement: * Defect identification * Magnitude of the defect (events/unit time, etc) * Where is the defect (location/group/segment) * Why this project is important to work now ($, strategy support, etc) Project Scope: List project/process boundaries here Goal Statement: Increase(/decrease) the {primary metric} from {baseline state} to {improved state} by {date} without negatively impacting {secondary metric}. Baseline Metric Performance ( Time frame here ): Short Term Long Term Zbench x.x x.x DPMO xxxxxx xxxxxx This is our focus

51. What is a Goal Statement? The Goal Statement defines the project’s improvement objectives – “what will be improved and by when” The goal should be “S.M.A.R.T.” S = Specific M = Measurable performance A = Attainable R = Relevant to the project T = Time bound After defining Primary and Secondary Metrics, you will learn how to use the standard goal statement

52. Primary and Secondary Metrics The “Primary Metric” is the metric being improved by the project. It will have the same units of measure as those expressed in the problem statement Number of Document transactions/hr Pump Repair Cycle Time The “Secondary Metric” is the metric that must not be negatively impacted while improving the primary metric Proportion of Documents with information defects Pump Critical Dimensions within specs If your project has an efficiency related primary metric (typically VOB), the secondary is often effectiveness (typically VOC) - and vice versa

53. Primary and Secondary Metric Examples Example 1: For a project with a primary metric of reducing the proportion of incorrect customer bills, the secondary metric may be to not increase bill processing time Primary metric = effectiveness, secondary = efficiency Example 2: For a project with a primary metric of increasing the life of a NGS pH probe, the secondary metric may be pH probe accuracy Primary metric = efficiency, secondary = effectiveness

54. Standard Goal Statement When the primary and secondary goal statements have been established, use them to complete the following sentence: Increase/Decrease the {Primary Metric} from {Baseline State} to {Improved State} by {Date} without negatively impacting {Secondary Metric}. Is this a S.M.A.R.T goal statement?

55. Example Goal Statements Good examples: Decrease the proportion of telephone customers who are on hold more than 4 min. from 12% to 6% by 12/13/08 without increasing headcount. Increase the average pH probe life at NGS from 25 days to 60 days by 2/1/09 without negatively impacting the number of manual calibrations required. Poor examples: Increase pump life by 60% by 2/1/09. Decrease the number of employee hours required to process a document by instituting a new document sorting system.

56. Goal Statement Exercise Form into teams of 3-4 Create a properly phrased Goal Statement for each member’s project 20 Min

57. Remaining Project Charter Items Baseline Metric Performance Process Map Number Project Stakeholders Project Timeline Expected Benefits

58. Project Charter {Project Name & No. Here} Assigned Define Measure Analyze Green Improve Control Sched Date Date Date Date Date Date Date Actual Date Date Date Date Date Date Date Process Map Number: Number here Black Belt: Name here Process Owner: Name here Champion: Name here Implementation Coordinator : Name here Data Coordinator : Name here Team Members: Name & function here Name & function here Name & function here Name & function here Name & function here Expected Benefits: Hard Savings –$ xxx K Soft Savings –$ xxx K Other Benefits: List benefit here List benefit here Project Timeline: Customer CTQ(s): Describe customer CTQ (customer need/defect and spec limit.) Problem Statement : List the 4 elements of a problem statement: * Defect identification * Magnitude of the defect (events/unit time, etc) * Where is the defect (location/group/segment) * Why this project is important to work now ($, strategy support, etc) Project Scope: List project/process boundaries here Goal Statement: Increase(/decrease) the {primary metric} from {baseline state} to {improved state} by {date} without negatively impacting {secondary metric}. Baseline Metric Performance ( Time frame here ): Short Term Long Term Zbench x.x x.x DPMO xxxxxx xxxxxx These are our focus

59. Baseline Metric Performance “ Baseline” data is data for the project Y (and X’s if available) over the recent past For a project to be completed in an acceptable cycle time, it needs to have (at least some) “baseline” data How much data should you have? Ideally 12 months If less than 12 months data is not available, use what is available Key issue is to have some long term data. The length of time this represents is unique to each project. If there is no baseline data available, consider postponing the project launch until some baseline data has been gathered

60. Baseline Metric Performance What do “Zbench”, “DPMO”, “Short Term”, and “Long Term” mean? These are process capability terms which relate process performance to customer specifications. These will be calculated in deliverable 9M. Enter these values if known or obtain assistance to calculate them

61. Process Map Number JEA has an extensive set of process maps with P and Q metrics Q’s are output parameters = project Y’s P’s are input parameters = project X’s The Y for your project should be the Q on the process owners process map Document the process map number on the project charter

62. Project Stakeholders A Stakeholder is anyone “touched” by the project. In addition to the team members, this includes customers and suppliers (internal and/or external). List the Project Stakeholders who will be actively supporting the project on the Project Charter. When a project is first launched, some of the Stakeholders may not yet be identified.

63. Project Timeline Enter the project timeline by phase when known. The target timeline is 120 days for a complete DMAGIC project. Use this overall cycle time unless it is determined the timeline should be different. As each phase is completed, use a green, yellow, red color code to highlight cycle time performance vs. the schedule Green = Actual cycle time to date is equal to or ahead of schedule Yellow = Actual cycle time to date is 7 days or less over schedule Red = Actual cycle time to date is more than 7 days over schedule

64. Expected Benefits “ Expected Benefits” are a summary of the benefits which the project will bring “ Hard” financial savings “ Soft” financial savings Non-financial benefits (e.g. customer satisfaction) Expected Benefits calculations will be covered in detail in Deliverable 3D

65. Completed Charter Example

66. Deliverable 2: Define Improve Computer Delivery Time Proj. No. 12345 Assigned Define Measure Analyze Green Improve Control Sched 7/1/08 7/15/08 8/30/08 9/30/08 10/7/08 10/20/08 11/20/08 Actual 7/1/08 7/12/08 9/5/08 9/28/08 Process Map Number: 1234 Black Belt: I. Cantwait Process Owner: Weneedta Getbetter Champion: Ima Gonnahelp Implementation Coordinator : Iwill Putinplace Data Coordinator : Ilove Numbers Team Members: John – Installer Paul – Installer George – Supervisor Ringo - Purchasing Expected Benefits: Hard Savings – $15 K Soft Savings – $225 K Other Benefits: Internal Customer Satisfaction Scores Project Timeline: Customer CTQ(s): Configured computer delivered to new employee within 10 working days Problem Statement : From 7/1/08 through 6/30/08, new JEA employees located in downtown Jacksonville received their configured laptop/desktop computer at an average of 11.0 days (standard deviation = 2.04) vs. a 10 day USL. This translates to an estimated productivity loss of $225K/yr. Project Scope: Includes new hires and transferred employees to the downtown tower and CCC. Excludes all other locations or electronic Goal Statement: Decrease the average computer delivery time from 11.0 days to 9.0 days by 11/20/08 without negatively impacting new computer inventory or expediting costs. Baseline Metric Performance (7/08-6/08) : Short Term Long Term Zbench -0.72 -0.50 DPMO 763,253 692,088 Example charter for project in Green phase

67. Project Charter - Workshop

68. Project Charter Exercise 1 Complete a Project Charter for the following scenario “ Hi Sue, I have been meaning to talk to you. I was doing some data analysis last week and found that the Cl 2 level in water arriving at the customer’s house has averaged 1.35ppm over the past 6 month’s. The FDEP stipulates the minimum Cl 2 content is 0.20ppm which is a long way from 1.35. I know that we have to take into account that some days have a higher Cl 2 level than others so I calculated the standard deviation to be 0.31. If we can shift the mean closer to the lower spec, we stand to save $25k for every 0.10ppm of reduction. Would you be willing to take on a project to get the average down to 1.0ppm?” 15 Min

69. Example 1 Data

70. Example 1 - Solution Process Map Number: Number here Black Belt: Name here Process Owner: Name here Champion: Name here Implementation Coordinator : Name here Data Coordinator : Name here Team Members: Name & function here Name & function here Name & function here Name & function here Name & function here Expected Benefits: Hard Savings – 100 $K Soft Savings – xxx $K Other Benefits: List benefit here List benefit here Project Timeline: Customer CTQ(s): Cl 2 content in water leaving Ridenour averages 1.0ppm. Problem Statement : The Cl 2 content of Ridenour’s water averages 1.35ppm vs. a goal of 1.0ppm. This equates to a $100k opportunity for Cl 2 savings. Project Scope: Includes the water leaving Ridenour and excludes all other locations or water contaminants. Goal Statement: Decrease the Cl 2 content at Ridenour from 1.35ppm to 1.0ppm by 2/1/09 without negatively impacting our ability to meet FDEP limits. Baseline Metric Performance ( 2/08 – 7/08 ): Short Term Long Term Zbench 22.9 3.71 DPMO 0 103 Assigned Define Measure Analyze Green Improve Control Sched 7/1/08 7/15/08 8/30/08 9/30/08 10/7/08 10/20/08 11/20/08 Actual

71. Project Charter Example 2 Complete a Project Charter for the following scenario “ I have been looking at my budget and don’t like what I see. Our cost to maintain the lime pumps is outrageous and I would like to shave 20% off the $13,500/mo. we spend. I put the last 10 month’s of data into the file Lime pump cost.mtw for you to use. Joe and Ruth are two mechanics that are pretty familiar with the area so let’s use them as team members.” 10 Min

72. Example 2 - Solution A charter should not be completed for the Lime Pump Cost charter as presented. There is no specific process defect outlined. Stating cost as a defect does not reflect a process oriented problem solving methodology. Cost is a result of the defect – not the defect itself. It is certainly valid to start researching a project based on the opinion that costs are too high, but there needs to be a drilldown to understand what defect needs to be improved. For example, a $500k/yr cost could represent a large, small, or NO underlying defect within the current process. Remember, COPQ is the Cost of Poor Quality. It’s not Cost Is Poor Quality.

73. Project Charter Example 3 Complete a Project Charter for the following scenario “ I have been looking at my budget and don’t like what I see. The cost to maintain NGS lime pumps is outrageous and I would like to shave 20% off the $13,500/mo we spend. The cost is mostly related to the mechanical pump seals. They just don’t seem to last like they should, with an average life of around 37 days with some lasting only ~20 days. I put the last 10 month’s of seal life data into the file Lime pump seal life.mtw for you to use. If we can get them to the point where minimum life is 35 days I would consider that a victory. Joe and Ruth are two mechanics that are pretty familiar with the area so let’s use them as team members and start on Sept 1.” 10 Min

74. Example 3 Data

75. Example 3 - Solution Process Map Number: Number here Black Belt: Name here Process Owner: Name here Champion: Name here Implementation Coordinator : Name here Data Coordinator : Name here Team Members: Name & function here Name & function here Name & function here Name & function here Name & function here Expected Benefits: Hard Savings – xxx $K Soft Savings – xxx $K Other Benefits: List benefit here List benefit here Project Timeline: Customer CTQ(s): Lime pump seal life meets or exceeds 35 days. Problem Statement : The Lime pump seal life at NGS currently averages 37 days vs. a desired minimum of 35 for any individual seal. This equates to $xxx/yr COPQ. Project Scope: Includes Lime pump seals at NGS, excludes all other locations or pumps Goal Statement: Increase the NGS lime pump seal life from an average 37 days to 58 days by 2/1/09 without negatively impacting maintenance costs. Baseline Metric Performance ( 12/07 – 8/08 ): Short Term Long Term Zbench 0.35 0.27 DPMO 362163 392180 Assigned Define Measure Analyze Green Improve Control Sched 9/1/08 10/5/08 11/1/08 12/1/08 1/1/09 2/1/09 3/1/09 Actual

76. Project Charter Exercise 4 Complete a Project Charter for the following scenario “ Hi George, I have been hoping to bump into you. I have a great project I would like you to work on. My group has been looking at the way we do our CAD drawings and are convinced it is antiquated. MicroSquish has some new software in beta release called “Be-a-CAD” that will probably increase productivity by $100k/yr. We have tentatively agreed to be one of their beta test sites in exchange for a 10% price break on the purchase price. Since you have some experience in CAD systems, you are just the person to help put together a well thought out transition plan and have the new system in place 6 month’s from now”. 10 Min

77. Example 4 - Solution A charter should not be completed for the Microsquish CAD software proposal. This is not a DMAIC project. It may be a very valid improvement to implement – it just isn’t a DMAIC project. When the business wants to implement a known solution, or when the tasks to achieve an end goal are known and obvious, this is a “just do it” project. Select an appropriate task force leader and proceed. DMAIC is used when the solution isn’t “obvious”. Rule of thumb – if you ask 4-6 people who have a different perspective of the problem what 1 thing they would do to fix the problem, and you get the same answer, it is a “just do it”. If you get several answers, use “DMAIC”.

78. Homework – 2D Complete a Project Charter for the following scenario and be prepared to show your results tomorrow A Process Owner at Pearl St. tells you “I just haven’t done a good job of getting my crew on the road in the morning. Ideally, the jobs would be assigned to all 40 employees and the trucks would be departed within 30 minutes of start time. I have been tracking this over the past 10 weeks and we seem to average 35 minutes. At $17.50/hour, that is a lot of money spent just sitting. Today is Aug 1 and I would like to get this fixed as soon as possible. How soon can you start the project?” You can leave the map number and team member names blank. See following Process Capability graph for supporting information.

79. Homework 2D Process Capability

80. Pearl St. Example {Project Name & No. Here} Process Map Number: Number here Black Belt: Name here Process Owner: Name here Champion: Name here Implementation Coordinator : Name here Data Coordinator : Name here Team Members: Name & function here Name & function here Name & function here Name & function here Name & function here Expected Benefits: Hard Savings – xxx $K Soft Savings – xxx $K Other Benefits: List benefit here List benefit here Project Timeline: Customer CTQ(s): Each Pearl St. Crew heading to a work location < 30 min of start time. Problem Statement : Work crews at Pearl St. are taking an average 35 minutes to obtain work assignments and depart the yard vs. a 30 minute individual crew maximum. Reducing this to a 20 min avg. equates to $xxx/yr in lost productivity. Project Scope: Includes all Pearl St. work crews, excludes all other locations. Goal Statement: Decrease the work crew departure delay from an average of 35min to 20 min by 1/2/09 without negatively impacting accuracy or completeness of work assignments. Baseline Metric Performance ( 5/08-7/08 ): Short Term Long Term Zbench -2.39 -0.85 DPMO 991625 803225 Assigned Define Measure Analyze Green Improve Control Sched 9/1/08 10/5/08 11/1/08 12/1/08 1/1/09 2/1/09 3/1/09 Actual

81. Learning Check – Define Project Boundaries Upon completing this module, students should be able to: Name the 4 elements of a problem statement Construct a problem statement from “real world” data Create a SIPOC Create an Included/Excluded worksheet Create an elevator speech Construct a goal statement from “real world” data Apply the green, yellow, and red color codes to the project cycle time section of the project charter Construct a blank charter using information from this and other modules