Lss U2 Notes

UNIT 2 - THE SCOPE OF TOOLS AND TECHNIQUES IPO – INPUT PROCESS OUTPUT Diagram Input Process Output called IPO like usual. Input process output is basically what one puts in and its outcome. It is an Information processing cycle that determines how the information is processed and handled with in a system. IPO system is always be a part in every business. In business, every company should have products. Output is mean products of the company. All stuff that the company made for selling is an output. And all stuff that the company buy for make the product is called an input. So input is all stuff that the company will use for make the products of the company. And process is the process the ways company made the product  SIPOC diagram is a Six Sigma tool used for documenting business processes. The word SIPOC stands for Suppliers, Inputs, Process, Outputs, and Customers which form the columns of the diagram. SIPOC diagram visually documents a business process from beginning to end. Because the diagram doesn’t contain much detail about the process, it is often called a high-level process map. Benefits of SIPOC Diagram The diagram is useful in a number of ways. For starters, it gives people unfamiliar with the business process a high-level overview. Because the diagram contains only the most basic information, it also works well if you need to quickly fill in a new person or update someone who worked on the process in the past. SIPOC diagram is also used to kick-start problem-solving within the business process. First of all, the diagram is useful if the team needs to agree on the common language and understanding of the process. This way you can make sure everyone is on the same page before you continue. Second, SIPOC diagram can be your first step in creating a process map. This tool gives you the first coherent view of your process and sets the foundation for Six Sigma DMAIC strategy (usually used during the “Define” phase of DMAIC). Finally, SIPOC diagram can clarify a few things for your team, including: 1. For which stakeholder does this process primarily exist? 2. What value does it create? What output is produced? 3. Who is the owner of this process? 4. Who provides inputs to this process? 5. What are the inputs? 6. What resources does this process use? 7. What steps create the value? 8. Are there sub-processes with natural start and end points? These questions, which are common to nearly all processes addressed by Six Sigma projects, have been arranged into a standard format known as SIPOC. SIPOC stands for Suppliers-Inputs-Process-Outputs-Customers. SIPOCs begin with people who know something about the process. This may involve people who are not fulltime members of the Six Sigma team. Bring the people together in a room and conduct a “focused brainstorming” session. To begin, briefly describe the process and obtain consensus on the definition. For example: • “Make it easy for the customer to reach technical support by phone” • “Reduce the space needed to store tooling” • “Reduce the downtime on the CNC machine” • “Get roofing crew to the work site on time” • “Reduce extra trips taken by copier maintenance person” Post flip charts labeled suppliers, inputs, process, outputs, and customers. Once the process has been described, create the SIPOC diagram as follows: OMF751 LEAN SIX SIGMA

1. Create a simple, high-level process map of the process. Display this conspicuously while the remaining steps are taken to provide a reminder to the team. 2. Using brainstorming rules, identify the outputs of this process. Record all ideas on the outputs flip chart without critiquing them. 3. Using brainstorming rules, identify the customers who will receive the outputs. Record all ideas on the customer’s flip chart without critiquing them. 4. Using brainstorming rules, identify the inputs needed for the process to create the outputs. Record all ideas on the Inputs flip chart without critiquing them. 5. Using brainstorming rules identify the suppliers of the inputs. Record all ideas on the supplier’s flip chart without critiquing them. 6. Clean up the lists by analyzing, rephrasing, combining, moving, etc. 7. Create a SIPOC diagram. 8. Review the SIPOC with the project sponsor and process owner. Modify as necessary.

In 6 Sigma, CTQ is an acronym that stands for Critical-To- Quality. Customer requirements, which are identified as CTQs, are actually a handful of elements that are considered critical to the executive team in determining the success of the project/product/process. CTQ trees were originally developed as a part of the Six Sigma approach. However; you can use them in a variety of situations, including when you are developing products, processes, and services for your internal customers. CTQs are the internal critical quality parameters that relate to the wants and needs of the customer. The (internal and external) customer requirements get translated into Critical-To-Quality (CTQ) features. These CTQs define the criteria to evaluate what good looks like i.e., how well the project scope and deliverables meet requirements. CTQ is a simple, yet powerful tool that translates customer needs into a Meaningful, Measurable, and Actionable metrics for people or group of people. CTQs answer this question: How does my work relate to the customer requirements, and how do I know when I have fulfilled them? CTQ helps you to understand the customer’s general requirements in more specific terms. CTQs serve as a bridge between the internal process, its deliverables and customer satisfaction. OMF751 LEAN SIX SIGMA

Need –  What customer need are you fulfilling with your product or service? Drivers – What elements or characteristics will your customers mostly likely consider when judging the quality of your product or service? Requirements – What process or product requirements are needed to make those drivers meet customer standards?

Project Charter refers to a statement of objectives in a project. This statement also sets out detailed project goals, roles and responsibilities, identifies the main stakeholders, and the level of authority of a project manager. It acts as a guideline for future projects as well as an important material in the organization's knowledge management system. The project charter is a short document that would consist of new offering request or a request for proposal. This document is a part of the project management process, which is required by Initiative for Policy Dialogue (IPD) and Customer Relationship Management (CRM). The Role of Project Charter Following are the roles of a Project Charter:  It documents the reasons for undertaking the project.  Outlines the objectives and the constraints faced by the project.  Provides solutions to the problem in hand.  Identifies the main stakeholders of the project. Benefits of Project Charter Following are the prominent benefits of Project Charter for a project:  It improves and paves way for good customer relationships. OMF751 LEAN SIX SIGMA

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Project Charter also works as a tool that improves project management processes. Regional and headquarter communications can also be improved to a greater extent. By having a project charter, project sponsorship can also be gained. Project Charter recognizes senior management roles. Allows progression, which is aimed at attaining industry best practices.

Elements in Project Charter Since project charter is a project planning tool, which is aimed at resolving an issue or an opportunity, the below elements are essential for a good charter project. For an effective charter project, it needs to address these key elements:  Identity of the project.  Time: the start date and the deadline for the project.  People involved in the project.  Outlined objectives and set targets.  The reason for a project charter to be carried out, often referred to as 'business case'.  Detailed description of a problem or an opportunity.  The return expected from the project.  Results that could be expected in terms of performance.  The expected date that the objectives is to be achieved.  Clearly defined roles and responsibilities of the participants involved.  Requirement of resources that will be needed for the objectives to be achieved.  Barriers and the risks involved with the project.  Informed and effective communication plan. Out of all above elements, there are three most important and essential elements that need further elaboration. Business Case This outlines the need for a project charter to take place. A business case should set out the benefits gained from carrying out a project charter. Benefits need not only be in terms of finance such as revenue, cost reduction, etc., but also the benefit that the customer receives. Following are the characteristics of a good business case:  The reasons of undertaking the project.  The benefits gained from undertaking the project now.  The consequences of not doing the project.  The factors that would conclude that it fits the business goals. Project Scope As the name denotes, it refers to the scope that the project will give the business if they undertake the project. Before doing a project, the following concerns need to be addressed:  The within scope and out of scope needs to be considered.  The process that each team will focus upon.  The start and end points for a process.  Availability of resources.  Constraints under which the team will work.  Time limitations .  The impact on the normal workload if the project is to be undertaken. OMF751 LEAN SIX SIGMA

The Need for a Good Communication Plan The need for a good communication plan is at its utmost necessity when it comes to planning a project. Project managers need to work on building a good communication plan which will help in meeting the overall objectives of a Project Charter. When creating a communication plan, the project manager needs to take the following into consideration:  Who - responsibility of each individuals participating in the project.  What - the motive and the reason for communication plan.  Where - location where the receiver could find information.  When - the duration and the frequency of the communication plan.  How - the mechanism which is used to facilitate the communication.  Whom - The receivers of the communication.

The seven traditional tools of quality: 1. Pareto diagram 2. Flow diagram 3. Cause and effect diagram 4. Check sheets 5. Histogram 6. Control charts 7. Scatter diagram Old Seven Tools of quality control. • Flow chart – for depicting the essential steps of a process by using standard symbols. • Check sheet - for systematic data gathering, by tabulating the frequency of occurrence • Histogram – for graphically displaying the frequency distribution of the numerical data. • Pareto diagram – for identifying the vital few causes that account for a dominant share of quality loss. OMF751 LEAN SIX SIGMA

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Cause and effect diagram – for identifying and analyzing the potential causes of a given problem Scatter diagram – for depicting the relationship between two variables Control chart – for identifying process variations and signaling corrective action to be taken.

PARETO DIAGRAM: Pareto charts are used for identifying a set of priorities. You can chart any number of issues/variables related to a specific concern and record the number of occurrences. This way you can figure out the parameters that have the highest impact on the specific concern. This helps you to work on the propriety issues in order to get the condition under control. When do we use it (3.20)  Pareto analysis can be used in a wide range of situations where one need to priorities problems based on its relative importance.  It can be used as a risk assessment technique from activity level to system level.  Breaks big problem into smaller pieces.  Identifies most significant factors.  Shows where to focus efforts  Allow better use of limited resources. How can we construct it(3.20-3.21) A Pareto diagram can be constructed using the following steps: 1. Obtain data, using a check sheet or brainstorm. 2. Arrange the data in descending order starting from the largest category to smallest. 3. Calculate the total and percentage of the total that each category represents. 4. Compute the cumulative percentages. 5. Draw a bar chart with two vertical axes. Along the left vertical axes, mark the measured values for each cause, starting from Zero till the total number of causes. The right vertical axis should have the same height and should go from 0 to 100%. This axis displays the cumulative percentages. List the different kinds of causes along the horizontal axis, from left to right in descending order of frequency or costs. 6. Draw a bar above each item whose height represents the number for that cause. 7. Plot a cumulative percentage line. 8. Now draw a horizontal line from 80% (on the right vertical axis) to the left till the point of intersection with the cumulative line, and then draw a vertical line, and then draw a vertical line from this intersection downwards till the horizontal axis. Left from this intersection point are the 20% of causes (the most essential bottlenecks) which causes 80% of the damages. FLOW CHARTS: This is one of the basic quality tools that can be used for analyzing a sequence of events. The tool maps out a sequence of events that take place sequentially or in parallel. The flow OMF751 LEAN SIX SIGMA

chart can be used to understand a complex process in order to find the relationships and dependencies between events. You can also get a brief idea about the critical path of the process and the events involved in the critical path. Flow charts can be used for any field and to illustrate events involving processes of any complexity. There are specific software tools developed for drawing flow charts, such as MS Vision.

CAUSE AND EFFECT DIAGRAM:

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Cause and effect diagrams (Ishikawa Diagram) are used for understanding organizational or business problem causes. Organizations face problems everyday and it is required to understand the causes of these problems in order to solve them effectively. Cause and effect diagrams exercise is usually teamwork. A brainstorming session is required in order to come up with an effective cause and effect diagram. All the main components of a problem area are listed and possible causes from each area is listed. Then, most likely causes of the problems are identified to carry out further analysis. Benefits of using a Cause and Effect Diagram (3.5)  Helps determine root causes Encourages group participation Uses an orderly, easy-to-read format Indicates possible causes of variation Increases process knowledge Identifies areas for collecting data

Step involved in Cause and effect The cause and effect diagram may be constructed using the following steps

Step 1 - Identify and Define the Effect • Decide on the effect to examine • Use Operational Definitions • Phases effect as  Positive (an objective) or  Negative (a problem)

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diagram (3.6)

1. Define the effect clearly and concisely 2. Mark the short description of the effect in a box. Then draw a line from this box towards left. 3. List down all the possible minor and major causes through a brainstorming session. 4. Mark the major causes on the branches and minor causes on the sub branches of the CE diagrams. 5. Look for possible solutions for these causes. 6. Introduce the changes. Step 2- Fill in the Effect box and Draw the Spine

Cause and Effect Diagram for Incorrect Delivery CHECK SHEET: A check sheet can be introduced as the most basic tool for quality. A check sheet is basically used for gathering and organizing data. When this is done with the help of software packages such as Microsoft Excel, you can derive further analysis graphs and automate through macros available.Therefore, it is always a good idea to use a software check sheet for information gathering and organizing needs.One can always use a paperbased check sheet when the information gathered is only used for backup or storing purposes other than further processing. Construction of Check sheet • Formulate the objectives for collecting data • Decide which data is necessary • Determine who and how data will be analyzed • Draw a format to record data • Collect and record data problem wise by putting tally lines. • Start counting by tallying on the list I, II,III,IIII and IIII represent the number 1,2,3, 4 and 5 respectively. • Mark on the list the total number of facts which were noticed.

Types of check sheet 1. Process distribution check sheets. 2. Defective item check sheets. 3. Defect location check sheet. 4. Defect factor check sheet. HISTOGRAM: Histogram is used for illustrating the frequency and the extent in the context of two variables. Histogram is a chart with columns. This represents the distribution by mean. If the histogram is normal, the graph takes the shape of a bell curve. If it is not normal, it may take different shapes based on the condition of the distribution. Histogram can be used to measure something against another thing. Always, it should be two variables. OMF751 LEAN SIX SIGMA

Consider the following example: Histogram is used:  To Summarize large data sets graphically • Compare measurements to specifications • Communicate information to the team • Assist in decision making SCATTER DIAGRAM: When it comes to the values of two variables, scatter diagrams are the best way to present. Scatter diagrams present the relationship between two variables and illustrate the results on a Cartesian plane. Then, further analysis, such as trend analysis can be performed on the values. In these diagrams, one variable denotes one axis and another variable denotes the other axis. CONTROL CHARTS: Control chart is the best tool for monitoring the performance of a process. These types of charts can be used for monitoring any processes related to function of the organization. These charts allow you to identify the following conditions related to the process that has been monitored.  Stability of the process  Predictability of the process  Identification of common cause of variation  Special conditions where the monitoring party needs to react

Control charts for variables X – Arithmetic chart

Control charts for attributes P -chart

R- Range chart

np -chart

Standard deviation chart

C- chart

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Nonconformities chart

U -chart

A process map is a planning and management tool that visually describes the flow of work. Using process mapping software, process maps show a series of events that produce an end result. A process map is also called a flowchart, process flowchart, process chart, functional process chart, functional flowchart, process model, workflow diagram, business flow diagram or process flow diagram. It shows who and what is involved in a process and can be used in any business or organization and can reveal areas where a process should be improved. Purpose of process mapping The purpose of process mapping is for organizations and businesses to improve efficiency. Process maps provide insight into a process, help teams brainstorm ideas for process improvement, increase communication and provide process documentation. Process mapping will identify bottlenecks, repetition and delays. They help to define process boundaries, process ownership, process responsibilities and effectiveness measures or process metrics. Benefits of process mapping Process mapping spotlights waste, streamlines work processes and builds understanding. Process mapping allows you to visually communicate the important details of a process rather than writing extensive directions. Flowcharts and process maps are used to:  Increase understanding of a process  Analyze how a process could be improved  Show others how a process is done  Improve communication between individuals engaged in the same process  Provide process documentation  Plan projects

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Regression analysis is a powerful statistical method that allows you to examine the relationship between two or more variables of interest. While there are many types of regression analysis, at their core they all examine the influence of one or more independent variables on a dependent variable.

Regression analysis is used in stats to find trends in data. For example, you might guess that there’s a connection between how much you eat and how much you weigh; regression analysis can help you quantify that. OMF751 LEAN SIX SIGMA

Regression analysis will provide you with an equation for a graph so that you can make predictions about your data. For example, if you’ve been putting on weight over the last few years, it can predict how much you’ll weigh in ten years time if you continue to put on weight at the same rate. It will also give you a slew of statistics (including a p-value and a correlation coefficient) to tell you how accurate your model is. Most elementary stats courses cover very basic techniques, like making scatter plots and performing linear regression. However, you may come across more advanced techniques like multiple regression. Multiple regression analysis is used to see if there is a statistically significant relationship between sets of variables. It’s used to find trends in those sets of data. Multiple regression analysis is almost the same as simple linear regression. The only difference between simple linear regression and multiple regression is in the number of predictors (“x” variables) used in the regression.  Simple regression analysis uses a single x variable for each dependent “y” variable. For example: (x 1, Y1).  Multiple regression uses multiple “x” variables for each independent variable: (x1)1, (x2)1, (x3)1, Y1). In one-variable linear regression, you would input one dependent variable (i.e. “sales”) against an independent variable (i.e. “profit”). But you might be interested in how different types of sales effect the regression. You could set your X1 as one type of sales, your X2 as another type of sales and so on.

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What Is SWOT Analysis? SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential. A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths and weaknesses of an organization, its initiatives, or an industry. The organization needs to keep the analysis accurate by avoiding pre-conceived beliefs or gray areas and instead focusing on real-life contexts. Companies should use it as a guide and not necessarily as a prescription   

SWOT analysis is a strategic planning technique that provides assessment tools. Identifying core strengths, weaknesses, opportunities, and threats lead to fact-based analysis, fresh perspectives and new ideas. SWOT analysis works best when diverse groups or voices within an organization are free to provide realistic data points rather than prescribed messaging.

Strengths Strengths are internal, positive attributes of your company. These are things that are within your control.    

What business processes are successful? What assets do you have in your team, such as knowledge, education, network, skills, and reputation? What physical assets do you have, such as customers, equipment, technology, cash, and patents? What competitive advantages do you have over your competition? Weaknesses Weaknesses are negative factors that detract from your strengths. These are things that you might need to improve on to be competitive.

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Are there things that your business needs to be competitive? What business processes need improvement? Are there tangible assets that your company needs, such as money or equipment? Are there gaps on your team? Is your location ideal for your success? Opportunities Opportunities are external factors in your business environment that are likely to contribute to your success.

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Is your market growing and are there trends that will encourage people to buy more of what you are selling? Are there upcoming events that your company may be able to take advantage of to grow the business? Are there upcoming changes to regulations that might impact your company positively? If your business is up and running, do customers think highly of you?

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Threats Threats are external factors that you have no control over. You may want to consider putting in place contingency plans for dealing them if they occur.     

Do you have potential competitors who may enter your market? Will suppliers always be able to supply the raw materials you need at the prices you need? Could future developments in technology change how you do business? Is consumer behavior changing in a way that could negatively impact your business? Are there market trends that could become a threat?

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A PESTEL analysis or PESTLE analysis (formerly known as PEST analysis) is a framework or tool used to analyse and monitor the macro-environmental factors that may have a profound impact on an organisation’s performance. This tool is especially useful when starting a new business or entering a foreign market. It is often used in collaboration with other analytical business tools such as the SWOT analysis and Porter’s Five Forces to give a clear understanding of a situation and related internal and external factors. PESTEL is an acronym that stand for Political, Economic, Social, Technological, Environmental and Legal factors. However, throughout the years people have expanded the framework with factors such as Demographics, Intercultural, Ethical and Ecological resulting in variants such as STEEPLED, DESTEP and SLEPIT. In this article, we will stick simply to PESTEL since it encompasses the most relevant factors in general business. Each factor will be elaborated on below:

Political Factors: These factors are all about how and to what degree a government intervenes in the economy or a certain industry. Basically all the influences that a government has on your business could be classified here. This can include government policy, political stability or instability, corruption, foreign trade policy, tax policy, labour law, environmental law and trade restrictions. Furthermore, the government may have a profound impact on a nation’s education system, infrastructure and health regulations. These are all factors that need to be taken into account when assessing the attractiveness of a potential market. Economic Factors: Economic factors are determinants of a certain economy’s performance. Factors include economic growth, exchange rates, inflation rates, interest rates, disposable income of consumers and unemployment rates. These factors may have a direct or indirect long term impact on a company, since it affects the purchasing power of consumers and could possibly change demand/supply models in the economy. Consequently it also affects the way companies price their products and services. Social Factors: This dimension of the general environment represents the demographic characteristics, norms, customs and values of the population within which the organization operates. This inlcudes population trends such as the population growth rate, age distribution, income distribution, career attitudes, safety emphasis, health consciousness, lifestyle attitudes and cultural barriers. These factors are especially important for marketers when targeting certain customers. In addition, it also says something about the local workforce and its willingness to work under certain conditions. Technological Factors: These factors pertain to innovations in technology that may affect the operations of the industry and the market favorably or unfavorably. This refers to technology incentives, the level of innovation, automation, research and development (R&D) activity, technological change and the amount of technological awareness that a market possesses. These factors may influence decisions to enter or not enter certain industries, to launch or not launch OMF751 LEAN SIX SIGMA

certain products or to outsource production activities abroad. By knowing what is going on technology-wise, you may be able to prevent your company from spending a lot of money on developing a technology that would become obsolete very soon due to disruptive technological changes elsewhere. Environmental Factors: Environmental factors have come to the forefront only relatively recently. They have become important due to the increasing scarcity of raw materials, polution targets and carbon footprint targets set by governments. These factors include ecological and environmental aspects such as weather, climate, environmental offsets and climate change which may especially affect industries such as tourism, farming, agriculture and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer. This has led to many companies getting more and more involved in practices such as corprate social responsibility (CSR) and sustainability. Legal Factors: Although these factors may have some overlap with the political factors, they include more specific laws such as discrimination laws, antitrust laws, employment laws, consumer protection laws, copyright and patent laws, and health and safety laws. It is clear that companies need to know what is and what is not legal in order to trade successfully and ethically. If an organisation trades globally this becomes especially tricky since each country has its own set of rules and regulations. In addition, you want to be aware of any potential changes in legislation and the impact it may have on your business in the future. Recommended is to have a legal advisor or attorney to help you with these kind of things. 5 Whys technique Sakichi Toyoda, the Japanese industrialist, inventor, and founder of Toyota Industries, developed the 5 Whys technique in the 1930s. It became popular in the 1970s, and Toyota still uses it to solve problems today. Toyota has a "go and see" philosophy. This means that its decision making is based on an in-depth understanding of what's actually happening on the shop floor , rather than on what someone in a boardroom thinks might be happening. The 5 Whys technique is true to this tradition, and it is most effective when the answers come from people who have hands-on experience of the process or problem in question. The method is remarkably simple: when a problem occurs, you drill down to its root cause by asking "Why?" five times. Then, when a counter-measure becomes apparent, you follow it through to prevent the issue from recurring. 1. Assemble a Team Gather together people who are familiar with the specifics of the problem, and with the process that you're trying to fix. Include someone to act as a facilitator , who can keep the team focused on identifying effective countermeasures. 2. Define the Problem If you can, observe the problem in action. Discuss it with your team and write a brief, clear problem statement that you all agree on. For example, "Team A isn't meeting its response time targets" or "Software release B resulted in too many rollback failures." Then, write your statement on a whiteboard or sticky note, leaving enough space around it to add your answers to the repeated question, "Why?" 3. Ask the First "Why?" Ask your team why the problem is occurring. (For example, "Why isn't Team A meeting its response time targets?") Asking "Why?" sounds simple, but answering it requires serious thought. Search for answers that are grounded in fact: they must be accounts of things that have actually happened, not guesses at what might have happened. 4. Ask "Why?" Four More Times OMF751 LEAN SIX SIGMA

For each of the answers that you generated in Step 3, ask four further "whys" in succession. Each time, frame the question in response to the answer you've just recorded.

Step 5. Know When to Stop You'll know that you've revealed the root cause of the problem when asking "why" produces no more useful responses, and you can go no further. An appropriate counter-measure or process change should then become evident. 6. Address the Root Cause(s) Now that you've identified at least one root cause, you need to discuss and agree on the counter-measures that will prevent the problem from recurring. 7. Monitor Your Measures Keep a close watch on how effectively your counter-measures eliminate or minimize the initial problem. You may need to amend them, or replace them entirely. If this happens, it's a good idea to repeat the 5 Whys process to ensure that you've identified the correct root cause. Inter-relationship Diagram: The purpose of relations diagram is to generate a visual representation of the relations between an effect and its causes as well as the interrelationship between the causes in complex problems. The steps in the preparation of a relations diagram are: 1. Decide the ‘effect’ or the problem for which causes are to be found. Write is in the centre of the flip chart or a board and enclose it in a dark bordered rectangle. Discuss the subject and confirm the ‘effect’. 2. Brainstorm to identify the immediate causes for the effect first. Enter these in rectangles around the central dark rectangle. Take care to place causes likely to be related to one another in adjacent positions. It is quite possible that the locations of the causes may have to be changed as one progresses. Hence a white board is preferable to a flip chart for this exercise. If a flip chart is used, the causes may be written on post-it pads and stuck on the chart so that their location can be changed easily. OMF751 LEAN SIX SIGMA

3. Connect these immediate causes to the effect by connecting the rectangles of the causes to that of the effect with a line with an arrow pointing towards the effect. Explore the cause and effect relationship among the immediate causes and connect them, keeping in mind that the arrow always points to an effect. 4. Taking each of these immediate causes as an effect, brainstorm to find causes for them one by one. The key question for identifying causes is “why?”. Keep asking the question till the root causes are identified for the immediate, secondary and tertiary causes. 5. Explore the relationship between all the causes and connect the rectangles as in step-3. Show as many relations among different causes as possible. A large number of routes leading to the same root causes provides an indication that the root cause may be an important contributor to the problem. 6. Brainstorm to find the more important root causes and more prominent links leading to the effect. Mark these by making the rectangles and the connecting lines darker. 7. If necessary, rearrange the rectangles in such a way that the connecting lines are short and the diagram compact. 8. Provide a suitable title to the diagram.

WHAT IS OVERALL EQUIPMENT EFFECTIVENESS? OEE (Overall Equipment Effectiveness) is the gold standard for measuring manufacturing productivity. Simply put – it identifies the percentage of manufacturing time that is truly productive. An OEE score of 100% means you are manufacturing only Good Parts, as fast as possible, with no Stop Time. In the language of OEE that means 100% Quality (only Good Parts), 100% Performance (as fast as possible), and 100% Availability (no Stop Time). Measuring OEE is a manufacturing best practice. By measuring OEE and the underlying losses, you will gain important insights on how to systematically improve your manufacturing process. OEE is the single best metric for identifying losses, benchmarking progress, and improving the productivity of manufacturing equipment (i.e., eliminating waste). S I MPL E C A LC U LA TI ON The simplest way to calculate OEE is as the ratio of Fully Productive Time to Planned Production Time. Fully Productive Time is just another way of saying manufacturing only Good Parts as fast as possible (Ideal Cycle Time) with no Stop Time. Hence the calculation is: OEE = (Good Count × Ideal Cycle Time) / Planned Production Time Although this is an entirely valid calculation of OEE, it does not provide information about the three loss-related factors: Availability, Performance, and Quality. For that – we use the preferred calculation. OMF751 LEAN SIX SIGMA

P referred C alculation The preferred OEE calculation is based on the three OEE Factors: Availability, Performance, and Quality.

OEE is calculated by multiplying the three OEE factors: Availability, Performance, and Quality. Availability Availability takes into account all events that stop planned production long enough where it makes sense to track a reason for being down (typically several minutes). Availability is calculated as the ratio of Run Time to Planned Production Time: Availability = Run Time / Planned Production Time Run Time is simply Planned Production Time less Stop Time, where Stop Time is defined as all time where the manufacturing process was intended to be running but was not due to Unplanned Stops (e.g., Breakdowns) or Planned Stops (e.g., Changeovers). Run Time = Planned Production Time − Stop Time Performance Performance takes into account anything that causes the manufacturing process to run at less than the maximum possible speed when it is running (including both Slow Cycles and Small Stops). Performance is the ratio of Net Run Time to Run Time. It is calculated as: Performance = (Ideal Cycle Time × Total Count) / Run Time Ideal Cycle Time is the fastest cycle time that your process can achieve in optimal circumstances. Therefore, when it is multiplied by Total Count the result is Net Run Time (the fastest possible time to manufacture the parts). Since rate is the reciprocal of time, Performance can also be calculated as: Performance = (Total Count / Run Time) / Ideal Run Rate Performance should never be greater than 100%. If it is, that usually indicates that Ideal Cycle Time is set incorrectly (it is too high). Quality Quality takes into account manufactured parts that do not meet quality standards, including parts that need rework. Remember, OEE Quality is similar to First Pass Yield, in that it defines Good Parts as parts that successfully pass through the manufacturing process the first time without needing any rework. Quality is calculated as: Quality = Good Count / Total Count This is the same as taking the ratio of Fully Productive Time (only Good Parts manufactured as fast as possible with no Stop Time) to Net Run Time (all parts manufactured as fast as possible with no stop time). OMF751 LEAN SIX SIGMA

OEE OEE takes into account all losses, resulting in a measure of truly productive manufacturing time. It is calculated as: OEE = Availability × Performance × Quality If the equations for Availability, Performance, and Quality are substituted in the above and reduced to their simplest terms the result is: OEE = (Good Count × Ideal Cycle Time) / Planned Production Time This is the “simplest” OEE calculation described earlier. And, as described earlier, multiplying Good Count by Ideal Cycle Time results in Fully Productive Time (manufacturing only Good Parts, as fast as possible, with no Stop Time). Why the Preferred OEE Calculation? OEE scores provide a very valuable insight – an accurate picture of how effectively your manufacturing process is running. And, it makes it easy to track improvements in that process over time. What your OEE score doesn’t provide is any insights as to the underlying causes of lost productivity. This is the role of Availability, Performance, and Quality. In the preferred calculation you get the best of both worlds. A single number that captures how well you are doing (OEE) and three numbers that capture the fundamental nature of your losses (Availability, Performance, and Quality). Here is an interesting example. Look at the following OEE data for two sequential weeks. OEE Factor Week 1 Week 2

OEE

85.1%

85.7%

Availability

90.0%

95.0%

Performanc e

95.0%

95.0%

Quality

99.5%

95.0%

OEE is improving. Great job! Or is it? Dig a little deeper and the picture is less clear. Most companies would not want to increase Availability by 5.0% at the expense of decreasing Quality by 4.5%. OMF751 LEAN SIX SIGMA

C A LC U L A TI ON EX A MPLE Now let’s work through a complete example using the preferred OEE calculation. Here is data recorded for the first shift: Item

Data

Shift Length

8 hours (480 minutes)

Breaks

(2) 15 minute and (1) 30 minute

Downtime

47 minutes

Ideal Cycle Time

1.0 seconds

Total Count

19,271 widgets

Reject Count

423 widgets

Planned Production Time As described in the OEE Factors page, the OEE calculation begins with Planned Production Time. So first, exclude any Shift Time where there is no intention of running production (typically Breaks). Formula: Shift Length − Breaks Example: 480 minutes − 60 minutes = 420 minutes Run Time The next step is to calculate the amount of time that production was actually running (was not stopped). Remember that Stop Time should include both Unplanned Stops (e.g., Breakdowns) or Planned Stops (e.g., Changeovers). Both provide opportunities for improvement. Formula: Planned Production Time − Stop Time Example: 420 minutes − 47 minutes = 373 minutes OMF751 LEAN SIX SIGMA

Good Count If you do not directly track Good Count, it also needs to be calculated. Formula: Total Count − Reject Count Example: 19,271 widgets − 423 widgets = 18,848 widgets Availability Availability is the first of the three OEE factors to be calculated. It accounts for when the process is not running (both Unplanned Stops and Planned Stops). Formula: Run Time / Planned Production Time Example: 373 minutes / 420 minutes = 0.8881 (88.81%) Performance Performance is the second of the three OEE factors to be calculated. It accounts for when the process is running slower than its theoretical top speed (both Small Stops and Slow Cycles). Formula: (Ideal Cycle Time × Total Count) / Run Time Example: (1.0 seconds × 19,271 widgets) / (373 minutes × 60 seconds) = 0.8611 (86.11%) Performance can also be calculated based on Ideal Run Rate. The equivalent Ideal Run Rate in our example is 60 parts per minute. Formula: (Total Count / Run Time) / Ideal Run Rate Example: (19,271 widgets / 373 minutes) / 60 parts per minute = 0.8611 (86.11%) Quality Quality is the third of the three OEE factors to be calculated. It accounts for manufactured parts that do not meet quality standards. Formula: Good Count / Total Count Example: 18,848 widgets / 19,271 widgets = 0.9780 (97.80%) OEE Finally, OEE is calculated by multiplying the three OEE factors. Formula: Availability × Performance × Quality Example: 0.8881 × 0.8611 × 0.9780 = 0.7479 (74.79%) OEE can also be calculated using the simple calculation. Formula: (Good Count × Ideal Cycle Time) / Planned Production Time Example: (18,848 widgets × 1.0 seconds) / (420 minutes × 60 seconds) = 0.7479 (74.79%)

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The result is the same in both cases. The OEE for this shift is 74.79%. TRIZ TRIZ is the Russian acronym for the "Theory of Inventive Problem Solving," an international system of creativity developed in the U.S.S.R. between 1946 and 1985, by engineer and scientist Genrich S. Altshuller and his colleagues. According to TRIZ, universal principles of creativity form the basis of innovation. TRIZ identifies and codifies these principles, and uses them to make the creative process more predictable. In other words, whatever problem you're facing, somebody, somewhere, has already solved it (or one very like it). Creative problem solving involves finding that solution and adapting it to your problem. TRIZ is most useful in roles such as product development, design engineering, and process management. For example, Six Sigma  quality improvement processes often make use of TRIZ. The Key TRIZ Tools Let's look at two of the central concepts behind TRIZ: generalizing problems and solutions, and eliminating contradictions.1. Generalizing Problems and Solutions The primary findings of TRIZ research are as follows: Problems and solutions are repeated across industries and sciences. By representing a problem as a "contradiction" (we explore this later in this article), you can predict creative solutions to that problem. Patterns of technical evolution tend to repeat themselves across industries and sciences. Creative innovations often use scientific effects outside the field where they were developed. Using TRIZ consists of learning these repeating patterns of problem and solution, understanding the contradictions present in a situation, and developing new methods of using scientific effects. You then apply the general TRIZ patterns to the specific situation that confronts you, and discover a generalized version of the problem. Figure 1, below, illustrates this process.

Here, you take the specific problem that you face and generalize it to one of the TRIZ general problems. From the TRIZ general problems, you identify the general TRIZ solution you need, and then consider how you can apply it to your specific problem. The TRIZ databases are actually a collection of "open source" resources compiled by users and aficionados of the system (such as the 40 Principles and 76 Standard Solutions, which we look at, below). 2. Eliminating Contradictions Another fundamental TRIZ concept is that there are fundamental contradictions at the root of most problems. In many cases, a reliable way to solve a problem is to eliminate these contradictions. TRIZ recognizes two categories of contradictions: OMF751 LEAN SIX SIGMA

Technical contradictions. These are classical engineering "trade-offs," where you can't reach the desired state because something else in the system prevents it. In other words, when something gets better, something else automatically gets worse. For example:The product gets stronger (good), but the weight increases (bad). Service is customized to each customer (good), but the service delivery system gets complicated (bad). Training is comprehensive (good), but it keeps employees away from their assignments (bad). The key technical contradictions are summarized in the TRIZ Contradiction Matrix. As with all TRIZ resources, it takes time and study to become familiar with the Contradiction Matrix. Physical (or "inherent") contradictions. These are situations in which an object or system suffers contradictory, opposite requirements. Everyday examples include: Software should be complex (to have many features), but simple (to be easy to learn). Coffee should be hot (to be enjoyed), but cool (to avoid burning the drinker). An umbrella should be large (to keep the rain off), but small (to be maneuverable in a crowd). You can solve physical contradictions with the TRIZ Separation Principles. These separate your requirements according to basic categories of Space, Time and Scale. AFFINITY DIAGRAM The purpose of an affinity diagram is to provide a visual representation of grouping of a large number of ideas or factors or requirements into logical sets of related items to help one organise action plans in a systematic manner. The steps in the procedure for preparing an affinity diagram are : 1. Decide the subject or the topic 2. Generate a large number of ideas through brainstorming 3. Decide the number of groups and their titles. Create a card for each group. Enter the title of the group at the top of the card. 4. Distribute all the ideas among the cards. If necessary, create new cards for additional groups. 5. Arrange the cards according to the relationship between the groups. 6. Give a name to the affinity diagram.

Nominal group technique (NGT) is defined as a structured method for group brainstorming th at encourages contributions from everyone and facilitates quick agreement on the relative importance of OMF751 LEAN SIX SIGMA

issues, problems, or solutions. Team members begin by writing down their ideas, then selecting which idea they feel is best. Once team members are ready, everyone presents their favorite idea, and the suggestions are then discussed and prioritized by the entire group using a point system. NGT combines the importance ratings of individual group members into the final weighted priorities of the group. Use NGT when:      

Some group members are much more vocal than others Some group members think better in silence There is concern about some members not participating The group does not easily generate quantities of ideas Some or all group members are new to the team The issue is controversial or there is heated conflict NOMINAL GROUP TECHNIQUE STEPS Materials needed: Paper and pen or pencil for each individual, flipchart, marking pens, and tape.

1. 2. 3. o o o o 4.

5.

State the problem, question, or issue that is the subject of the brainstorming and ensure that everyone understands. Each team member silently thinks of solutions or ideas that come to mind when considering the problem and writes down as many as possible in a set period of time (5 to 10 minutes). Each member states aloud one idea. The facilitator records it on the flipchart. No discussion is allowed, not even questions for clarification. Ideas given do not need to be from the team members' written lists. Indeed, as time goes on, many ideas will not be found on their original lists. A member may "pass" his or her turn and may then add an idea on a subsequent turn. Continue around the group until all members pass or until an agreed-upon length of time. Discuss each idea in turn. Wording may be changed only when the idea’s originator agrees. Ideas may be stricken from the list only by unanimous agreement or when there are duplicates. Discussion may clarify meaning, explain logic or analysis, raise and answer questions, or state agreement or disagreement. The group may also combine ideas into categories. Prioritize the recorded ideas in relation to the original question using multivoting or list reduction. Typically, the solution with the highest total ranking is selected as the final decision. Other variations include estimating the amount of work required to implement each solution by assigning it a point value; the higher the point value, the more work involved. For example, Table 1 lists possible user requirements for a library card system. Three team members have assigned each user requirement a points value based on the estimated work involved.

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Table 1: Nominal Group Technique (NGT) Example Nominal Group Technique Considerations   

The primary purpose of the discussion is clarification, not to resolve differences of opinion. Discussion should be equally balanced among all ideas. Keep all ideas visible. When ideas overflow to additional flipchart pages, post previous pages around the room so all ideas are still visible to everyone.  See brainstorming for other suggestions to use with this tool. SMED stands for Single-Minute Exchange of Die. SMED was developed by Shigeo Shingo, a Japanese industrial engineer who was extraordinarily successful in helping companies dramatically reduce their changeover times. His pioneering work led to documented reductions in changeover times averaging 94% (e.g. from 90 minutes to less than 5 minutes) across a wide range of companies. The SMED system is a theory and set of techniques that make it possible to perform equipment setup and changeover operations in fewer than 10 minutes – in other words, in the single-minute range. SMED principles can be used and applied in almost any operation or process. It was developed to improve die and machine tool setups. SMED’s goal is to reduce the setup time to within minutes. Depending on the process, setup within minutes may be very difficult, but in most cases, if the SMED principles are followed, drastic reductions in setup time can be obtained. The basic principles of SMED are:  Identify internal versus external changeover tasks.  Analyze each task’s real purpose and function.  Focus on no/low cost solutions.  Aim to eliminate changeover time.

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Stage 1 – Separate internal and external setup Certain tasks can clearly be done before machines are stopped for changeover. These include lining up the right people, preparing parts and tools, making repairs, and bringing the parts and tools closer to the equipment. There are three practical techniques to doing this:  Develop and implement changeover checklists.  Perform function checks on parts and tools.  Reduce transportation or tools, parts, and materials. By separating these tasks and performing them as external setup can cut changeover time by as much as 30% to 50%. Stage 2 – Convert internal setup to external setup Stage 1 functions alone will not reduce internal setup time to within the single minute range. For that you must implement Stage 2. There are two primary steps to Stage 2:  Look at the true functions and purposes of each operation in your current internal setup  Find ways to convert these internal setups to external setup. The key to successful implementation of Stage 2 is to look at the function as if you are new to it. Three practical techniques help shift internal setup tasks to external setup. Those techniques are:  Prepare operating conditions in advance  Standardize functions  Use intermediary jigs Stage 3 – Streamline internal and external elements In this third and final stage, all of the remaining internal and external setup operations are improved. This can be done by looking closely at each operations function and purpose one more time. More specifically, Stage 3 improvements can be divided into external and internal setup improvements. Four basic approaches to accomplishing this are through: External Setup  Maintain a visual organized workplace Internal Setup  Implement parallel operations  Eliminate the need for adjustments  Use functional clamps  Mechanize functions SMED provides many benefits for companies and those working within the company. More specifically, the advantages of SMED along with quicker and more efficient setup times are improved flexibility, quicker delivery, better quality and higher productivity. Through these benefits you will also see simpler setups and safer changeovers, less inventory and more standardized processes. OMF751 LEAN SIX SIGMA

5S represents Japanese words that describe the steps of a workplace organization process. English equivalent words are shown in parenthesis 1. Seiri (Sort) 2. Seiton (Straighten, Set) 3. Seiso (Shine, Sweep) 4. Seiketsu (Standardize) 5. Shitsuke (Sustain) In simple terms, the five S methodology helps a workplace remove items that are no longer needed (sort), organize the items to optimize efficiency and flow (straighten), clean the area in order to more easily identify problems (shine), implement color coding and labels to stay consistent with other areas (standardize) and develop behaviors that keep the workplace organized over the long term (sustain). 1. Sort (seiri) – Distinguishing between necessary and unnecessary things, and getting rid of what you do not need  Remove items not used in area – outdated materials, broken equipment, redundant equipment, files on the computer, measurements which you no longer use  Ask staff to tag all items which they don’t think are needed – this improves understanding about need and use  Classify all equipment and materials by frequency of use to help decide if it should be removed – place ‘Red Tag’ on items to be removed  Establish a ‘holding area’ for items that are difficult to classify – hold item for allotted period to enable others not on 5S team to review 2. Straighten (seiton) – The practice of orderly storage so the right item can be picked efficiently (without waste) at the right time, easy to access for everyone. A place for everything and everything in its place.  Identify and allocate a place for all the materials needed for your work  Assign fixed places and fixed quantity  Make it compact  Place heavy objects at a height where they are easy to pick from  Decide how things should be put away, and obey those rules 3. Shine (seiso) – Create a clean worksite without garbage, dirt and dust, so problems can be more easily identified (leaks, spills, excess, damage, etc)  Identify root causes of dirtiness, and correct process  Only one work activity on a workspace at any given time  Keep tools and equipment clean and in top condition, ready for use at any time  Cleanliness should be a daily activity – at least 5 minutes per day  Use chart with signatures/initials shows that the action or review has taken place  Ensure proper lighting – it can be hard to see dirt and dust 4. Standardize (seiketsu) – Setting up standards for a neat, clean, workplace  Standardization of best practices through ‘visual management’  Make abnormalities visible to management  Keep each area consistent with one another  Standards make it easy to move workers into different areas  Create process of how to maintain the standard with defined roles and responsibilities  Make it easy for everyone to identify the state of normal or abnormal conditions – place photos on the walls, to provide visual reminder 5. Sustain (shitsuke) – Implementing behaviors and habits to maintain the established standards over the long term, and making the workplace organization the key to managing the process for success  Toughest phase is to Sustain – many fall short of this goal OMF751 LEAN SIX SIGMA

     

Establish and maintain responsibilities – requires leader commitment to follow through Every one sticks to the rules and makes it a habit Participation of everyone in developing good habits and buy-in Regular audits and reviews Get to root cause of issues Aim for higher 5S levels – continuous improvement             

BENEFITS IN IMPLEMENTING 5S Work place becomes proud place to work Results in good image and- generates business Operations become easier and safer in work place Disciplined people Improve productivity' and morality Better quality awareness More usable space Less Material handling time Less production cost Preventive maintenance High employee involvement Less accidents More time to improvement.

Mistake Proofing is about adding techniques to prevent defects and detect defects as soon as possible, if one does occur. Poka-Yoke is often used as a synonymous term but its meaning is to eliminate product defects by preventing human errors (that are unintentional). The concept was first put to widespread use by Shigeo Shingo within the Toyota Production System (TPS). When an error can not practically be 100% prevented or detected, then the next best option is to try to reduce the severity of the error and defect. Objective: PREVENT a defect from occurring and when this is not possible, DETECT the defect every time one occurs. There are various levels, effort, and costs of error proofing. The team needs to identify the optimal states and examine feasibility of implementation in the new product or process KPIV's. The goal is in this priority: 1.To prevent the errors that lead to the defects 2.To detect defects (not all errors can be 100% preventable) 3.To reduce the severity of the defect If practical and necessary, try to implement all three or a combination of the three options. Sometimes technology isn’t available to prevent and/or detect errors so the next best solution is to reduce the severity of the defect. Tools such as the 5-WHY are used to get to root causes of the errors. When thinking about mistake-proofing it is crucial to get to the sources and root causes. OMF751 LEAN SIX SIGMA

Value stream mapping (VSM) or lean process mapping is defined as a lean tool that employs a flowchart documenting every step in the process. Many lean practitioners see VSM as a fundamental tool to identify waste, reduce process cycle times, and implement process improvement. VSM is a workplace efficiency tool designed to combine material processing steps with information flow, along with other important related data. VSM is an essential lean tool for an organization wanting to plan, implement, and improve while on its lean journey. VSM helps users create a solid implementation plan that will maximize their available resources and help ensure that materials and time are used efficiently.



A value stream map allows you to see a top-down overview of your business processes. Then, you can analyze the process or workflow, identifying wastes and inefficiencies. Typically, here’s a couple of things you’d want to be on the lookout for: Delays that hold up the process OMF751 LEAN SIX SIGMA

 

Restraints that limit the process Excess inventory that ties up resources unproductively Step #1: Decide How Far You Want to Go Typically, you would start your mapping by indicating a start and end point. This would show where your internal process begins and ends. Some companies, however, prefer to map out the entire value chain. This, of course, has it’s pros and cons – while it does give you a better idea of the whole process, there’s usually not much you can do about any external processes. Step #2: Define the Steps Now determine what processes are involved in order to get from point A to point B. As a simple example, a nursery producing ornamental plants begins with seed from a supplier and delivers plants to a customer. Intervening steps that add value along the way might include:

    

Sowing Transplanting Growing Grading Shipping Step #3: Indicate the Information Flows One of the advantages of value stream mapping is that it includes information flows. To continue with the example above, our plant nursery needs to place orders for its suppliers and its customers will place orders for delivery. How often is this done and how? Record it on your map. Step #4: Gather the Critical Data You now have the basics, and it’s time for an in-depth look at each process. To do so, you need real data and some of your mapping team might have to spend a little time collecting the information you need. Typical points to look at would include:

      

The inventory items held for each process The cycle time (typically per unit) The transfer time The number of people needed to perform each step A number of products that must be scrapped The pack or pallet size that will be used The overall batch size that each step handles Step #5: Add Data and Time Lines to the Map Draw a table or data box under each process block to do so. If you’ve used historical data, be sure to verify it using the current inputs and outputs for each process. Indicate the timeline involved in each process beneath your data blocks. This shows the lead time needed to produce products and the actual time spent on producing each unit, pack size, or batch. Don’t be surprised if a product with a lead time of weeks takes just a few hours to produce. Step #6: Identify the Seven Wastes of Lean OMF751 LEAN SIX SIGMA

Just creating a value stream map without using it would be a complete waste of time. Now that you have one, it’s time to start looking for the “seven wastes” that could be eating up your profits.       

Transport doesn’t add value to your final product – unless you’re in the transport business! See if you can reduce steps involving transport of materials or information that don’t add value. Inventory of inputs and finished products costs you money which could have been earning income elsewhere. The lower your inventory levels can be without stonewalling production, the better it will be. Motion costs time and time is money. As an example, our nursery worker has to move her transplanted seedling 10 feet from the potting table to the tractor wagon. That’s wasted time. Waiting because there’s a bottleneck in a previous process or sub-process is another clear waste of valuable resources. Over-processing can be hard to gauge, but if an item can move from one process to another in an acceptable condition with less input, it should do so. Overproduction is an additional pitfall to avoid. Even if your product isn’t perishable, storing it and monitoring it until such time as a customer buys it is clearly a waste. Defects mean reworking or scrapping and are clear money-eaters. How can you reduce defects in each step of the process you’ve mapped?

Step #7: Create the Ideal Value Stream Map You know how things are if you maintain the status quo, but how would you like them to look? Use your team to help you map out an ideal value stream map that eliminates, or at least reduces, all the wastes you spotted when analyzing the results of your value stream mapping exercise.

Force Field Analysis was created by Kurt Lewin in the 1940s. Lewin originally used it in his work as a social psychologist. Today, however, it is also used in business, for making and communicating go/no-go decisions. The idea behind Force Field Analysis is that situations are maintained by an equilibrium between forces that drive change and others that resist change, as shown in figure 1, below. For change to happen, the driving forces must be strengthened or the resisting forces weakened. The tool is useful for making decisions by analyzing the forces for and against a change, and for communicating the reasoning behind your decision.

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Step 1: Describe Your Plan or Proposal for Change Define your goal or vision for change, and write it down in a box in the middle of the page. Step 2: Identify Forces for Change Think about the kinds of forces that are driving change. These can be internal and external. Internal drivers could include: Outdated machinery or product lines. Declining team morale. A need to increase profitability. Your external drivers could include: A volatile, uncertain  operating environment. Disruptive technologies. Changing demographic trends. Step 3: Identify Forces against Change Now brainstorm the forces that resist or are unfavorable to change. Internal resistors and restrainers could include: Fears of the unknown. Existing organizational structures. "That's not how we do it here " attitudes. External factors might be: Existing commitments to partner organizations. Government legislation. Obligations toward your customers. Now add the forces against change to the right-hand side of your Force Field Analysis. Step 4: Assign Scores OMF751 LEAN SIX SIGMA

Next, score each force, from, say, one (weak) to five (strong), according to the degree of influence each one has on the plan, and then add up the scores for each side (for and against). For a visual representation of the influence that each force has, draw arrows around them. Use bigger arrows for the forces that will have a greater influence on the change, and smaller arrows for forces that will have a weaker influence. Step 5: Analyze and Apply Now that you've done your Force Field Analysis, you can use it in two ways: To decide whether or not to move forward with the decision or change. To think about which supportive forces you can strengthen and which opposing or resisting forces you can weaken, and how to make the change more successful. Gantt chart? Many people have never heard of a Gantt. Simply put, a Gantt chart is a visual view of tasks scheduled over time. Gantt charts are used for planning projects of all sizes and they are a useful way of showing what work is scheduled to be done on a Gantt chart you can easily see: The start date of the project What the project tasks are Who is working on each task? When tasks start and finish How long each task will take How tasks group together, overlap and link with each other The finish date of the project day. They also help you view the start and end dates of a project in one simple view.

An Activity Network diagram is a 7M tool that graphically depicts your project timeline. You can gather great information on how to manage your project by mapping out tasks in order of occurrence and labeling each with the best, worst, and average case times it takes to complete them by incorporating PERT and CPM techniques into a flowchart. An Activity Network diagram helps you: The primary intent of creating an Activity Network Diagram is to create a flow chart showing the necessary tasks for a project in sequence order (including parallel and serial paths).     

Identify Critical Tasks Identify bottle necks Identify time tables. Determine which activities are to be performed Determine when activities must be performed

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

Determine in what order activities must be performed

How to make an Activity Network Diagram Activity network Diagram helps manage the development of projects – especially for organizations that have list activities performed at a particular time. An Activity Network diagram is a 7M tool that graphically depicts your project timeline. You can gather great information on how to manage your project by mapping out tasks in order of occurrence and labeling each with the best, worst, and average case times it takes to complete them by incorporating PERT and CPM techniques into a flowchart. An Activity Network diagram helps you: The primary intent of creating an Activity Network Diagram is to create a flow chart showing the necessary tasks for a project in sequence order (including parallel and serial paths).      

Identify Critical Tasks Identify bottle necks Identify time tables. Determine which activities are to be performed Determine when activities must be performed Determine in what order activities must be performed

How to make an Activity Network Diagram Activity network Diagram helps manage the development of projects – especially for organizations that have list activities performed at a particular time.

OMF751 LEAN SIX SIGMA

Step 1: List all of the tasks in the project The first thing that you have to do is to gather the list of the complete tasks of the organization that are required to complete the proposed project Step 2: Put in Chronological order Have them arranged in chronological order- that is according to the order of the execution of each task. OMF751 LEAN SIX SIGMA

If a task is dependent on another, be sure that that task is further down the timeline than the one needed. In other words, if Task A needs tasks B and C to complete before it can be performed, put B and C in front of task A. If tasks can be executed simultaneously, draw them in parallel. Step 3: Label Optimistic, Pessimistic, and Most Likely times Most-likely time. The time that you will likely need to complete the project. Most optimistic time. The shortest amount of time to complete the task. Most pessimistic time.   The longest amount of time to complete the task. Step 4: Calculate the Critical Path The Critical Path is the longest time through the entire project executing tasks in necessary order. This is important because the project will never complete quicker than the critical path. Step 5: Review and look for Efficiencies Look for ways to shorten your critical path. Re-evaluate the task dependencies. Is there any way you can move tasks around to complete the project faster? Where are your bottlenecks? Can any tasks be sub-divided? Are there any more ways tasks can be completed in parallel?. Radar (Spider/Web/Polar Bar) Chart? Suppose you were asked to rank your favorite beer on 8 aspects (Sourness, Bitterness, Sweetness, Saltiness, Yeast, Hop, Malt and Special Grain) and then show them graphically, you might use a Column Chart for it. But when there are a large number of variables (8 in this case), the Column Chart might look cluttered. In such scenarios, try the Radar Chart instead! A Radar Chart, also called as Spider Chart, Radial Chart or Web Chart, is a graphical method of displaying multivariate data in the form of a two-dimensional chart of three or more quantitative variables represented on axes starting from the same point. 

OMF751 LEAN SIX SIGMA

The milestone chart template as a simpler way to illustrate, schedule and report your project. A milestone chart will provide a snapshot of your project for important presentations and communications with management or customers. Milestone charts can be used to illustrate the key events, objectives and targets of any project or plan. This makes the milestone template an excellent tool for planning projects or managing programs where visualizing the key components need to be displayed in chronological order on a time schedule. The free milestone chart should be used for top level reviews. It was made for reporting to management and clients, or any audiences who should not be overwhelmed with the detailed minutia of the plan or project.

Earned Value Management (EVM) helps project managers to measure project performance. It is a systematic project management process used to find variances in projects based on the comparison of worked performed and work planned. EVM is used on the cost and schedule control and can be very useful in project forecasting. The objectives of an EVMS are to: o Relate time phased budgets to specific contract tasks and/or statements of work. o Provide the basis to capture work progress assessments against the baseline plan. o Relate technical, schedule, and cost performance. o Provide valid, timely, and auditable data/information for proactive project management analysis and action. OMF751 LEAN SIX SIGMA

o Supply managers with a practical level of summarization for effective decision making.

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Earned value management does introduce a few new terms.  Contractors’ internal systems must be able to provide: o Budgeted cost for work scheduled (BCWS), sometimes called the planned value. o Budgeted cost for work performed (BCWP) or earned value. o Actual cost of work performed (ACWP). o Budget at completion (BAC). o Estimate at completion (EAC) which is comprised of the cumulative to date actual cost of work performed plus the estimate to complete the remaining work. o Cost variance (CV) which is calculated as BCWP minus ACWP.  A result greater than 0 is favorable (an underrun), a result less than 0 is unfavorable (an overrun). o Schedule variance (SV) which is calculated as BCWP minus BCWS.  A result greater than 0 is favorable (ahead of schedule), a result less than 0 is unfavorable (behind schedule). o Variance at completion (VAC) which is calculated as BAC minus EAC.  A result greater than 0 is favorable, a result less than 0 is unfavorable. The benefits of implementing an EVMS can be summarized as follows. An EVMS: o Improves the planning process; OMF751 LEAN SIX SIGMA

Fosters a clear definition of the work scope; Establishes clear responsibility for work effort; Integrates technical, schedule, and cost performance; Provides early warning and analysis of potential Earned Value problems; Identifies problem areas for immediate and proactive management attention; Enables more accurate reporting of cost and schedule impacts of known problems; Enhances the ability to assess and integrate technical, schedule, cost, systems analysis, and risk factors; o Provides consistent and clear communication of progress at all management levels; and o Improves project visibility and accountability. o o o o o o o

PDCA or PDSA CYCLE  Plan-Do-Study-Act (PDSA) cycle, Deming cycle, Shewhart cycle. Understand the evolution of these variations. The Plan-do-check-act cycle (Figure 1) is a four-step model for carrying out change. Just as a circle has no end, the PDCA cycle should be repeated again and again for continuous improvement. The PDCA cycle is considered a project planning tool.

Use the PDCA cycle when:      

Starting a new improvement project Developing a new or improved design of a process, product, or service Defining a repetitive work process Planning data collection and analysis in order to verify and prioritize problems or root causes Implementing any change Working toward continuous improvement The Plan-do-check-act Procedure

1. 2. 3.

Plan: Recognize an opportunity and plan a change. Do: Test the change. Carry out a small-scale study. Check: Review the test, analyze the results, and identify what you’ve learned.

OMF751 LEAN SIX SIGMA

4.

Act: Take action based on what you learned in the study step. If the change did not work, go through the cycle again with a different plan. If you were successful, incorporate what you learned from the test into wider changes. Use what you learned to plan new improvements, beginning the cycle again.

BENEFITS OF PDSA CYCLE        

Daily routine management for the individual and or the team Problem solving process Project management Continuous development Vendor development Human resource management New product development Process trials

OMF751 LEAN SIX SIGMA

UNIT 3 - SIX SIGMA METHODOLOGIES The DMADV approach is widely used to implement new products or processes. It’s especially beneficial for supply chain operations due to its basis in data and comprehensive analysis, and the ability it provides to determine success early on. The five phases of a Design for Six Sigma project are as follows: Define. This initial phase determines everything from the project’s purpose, schedule, and budget to how the results will be communicated. It also details any risks associated and establishes quantifiable goals. Measure. During this phase, customer expectations and needs are translated into quantifiable design requirements. Methods such as surveys, site visits, and consumer focus groups are utilized to obtain customer information. Analyze. Once the design requirements are established, multiple designs are created. Assessment tools evaluate how well each concept meets customer needs and its potential for success. Design. The best design is selected, and detailed production work begins. The technology required, materials, manufacturing process and location, risks, and packaging are all evaluated through analysis tools and computer simulation. This phase is finished once a final design has been decided upon and a validation plan is developed. Verify. Validation testing is conducted to assess whether the design does actually meet performance and customer requirements. Often, a prototype or pilot build is created before the actual product launch. Whether the design is successful or not, project documentation is completed and results are shared. When is it best to use DFSS instead of DMAIC? First, consider whether the product has already been implemented, or if it is going to be introduced for the first time. DMAIC should be used for processes that a company already has in effect. For example, DMAIC can help a company that makes phones evaluate the types of updates its newest version requires in order to stay competitive in the cellphone market. The DMADV approach should be used for products and services that are not currently in existence. It is also ideal to use DMADV if you would like to create a product that fully meets customer expectations, want to initially provide a product of high quality, or are interested in being more likely to achieve success on the first attempt. A company that is introducing its first cellphone can utilize DMADV to develop a phone that meets customer’s needs right off the bat. DMADV is widely used in other variations, including DMADOV, which contains the additional step “Optimization,” and IDOV, which is Identify, Design, Optimize, Verify. Design For Six Sigma also integrates fundamental Six Sigma tools such as Design of Experiments (DOE), Failure Modes and Effects Analysis (FMEA), Design for Reliability (DFR) and Design for Testability (DFT). Businesses practicing Design For Six Sigma can benefit in a number of areas:  Identifying the Critical to Quality (CTQ) attributes most important to customers.  Enhanced process capability – determining what the process can deliver.  Reduction of variations to a minimum in final product fabrication.  Stable operations – ensuring reliable, predictable processes and improving the customer experience.  Designing superior performance– to meet customer expectations and process proficiency. In addition, the DFSS toolbox utilizes a number of proven Six Sigma elements, including: Project Charter – An important first step in the design process is where the project team identifies the business need, clarifies objectives, deliverables, schedule, budget and roles. Parameters for project success are also identified in this step. OMF751 LEAN SIX SIGMA

Voice of the Customer (VOC) – Understanding what the customer wants can be accomplished by analyzing existing customer feedback and polling potential customers through surveys, focus groups and questionnaires. Quality Function Deployment (QFD) – A variety of mediums are used to make design decisions for new products or services. Customer needs are translated into Critical To Quality (CTQ) characteristics of the product and process. Design for Reliability (DFR) and Design for Testability (DFT) – These tools can help with fine-tuning the design for the lifecycle of the product to minimize costs and maintain reliability. Failure Modes and Effect Analysis (FMEA) – Identify potential failures in the product design and manufacturing process and develop controls to minimize or correct them. Design of Elements (DOE) – Optimize parameter values and reduce variation to create a robust design. Design For Six Sigma also integrates fundamental Six Sigma tools such as Design of Experiments (DOE), Failure Modes and Effects Analysis (FMEA), Design for Reliability (DFR) and Design for Testability (DFT). Businesses practicing Design For Six Sigma can benefit in a number of areas:  Identifying the Critical to Quality (CTQ) attributes most important to customers.  Enhanced process capability – determining what the process can deliver.  Reduction of variations to a minimum in final product fabrication.  Stable operations – ensuring reliable, predictable processes and improving the customer experience.  Designing superior performance– to meet customer expectations and process proficiency. In addition, the DFSS toolbox utilizes a number of proven Six Sigma elements, including: Project Charter – An important first step in the design process is where the project team identifies the business need, clarifies objectives, deliverables, schedule, budget and roles. Parameters for project success are also identified in this step. Voice of the Customer (VOC) – Understanding what the customer wants can be accomplished by analyzing existing customer feedback and polling potential customers through surveys, focus groups and questionnaires. Quality Function Deployment (QFD) – A variety of mediums are used to make design decisions for new products or services. Customer needs are translated into Critical To Quality (CTQ) characteristics of the product and process. Design for Reliability (DFR) and Design for Testability (DFT) – These tools can help with fine-tuning the design for the lifecycle of the product to minimize costs and maintain reliability. Failure Modes and Effect Analysis (FMEA) – Identify potential failures in the product design and manufacturing process and develop controls to minimize or correct them. Design of Elements (DOE) – Optimize parameter values and reduce variation to create a robust design. FAILURE MODE AND EFFECTS ANALYSIS: (FMEA) Is an analytical technique that combines the technology and experience of people in identifying foreseeable failure modes of a product or process and planning for its elimination. Failure mode and effect analysis also known as risk analysis is a preventive measure to systematically display the causes, effects, and possible actions regarding observed failures. OBJECTIVES OF FMEA: 1. The objective of FMEA is to anticipate failures and prevent them from occurring. FMEA prioritizes failures and attempts to eliminate their causes. 2. FMEA is an engineering technique is used to define, identify and eliminate known and or potential failures, problems, errors which occur in the system, design, process and service before they reach the customer. OMF751 LEAN SIX SIGMA

3. FMEA is a before the event action and is done when existing systems products processes are changed or redesigned. 4. FMEA is a never ending process improvement tool. TYPES OF FMEA: 1. System FMEA – anaylse components, substystem and main system in early stage of design. 2. Design FMEA – Analyses the products/ parts before they are released to manufacturing. 3. Process FMEA – Focus on manufacturing and assembly process. 4. Service FMEA – Analyses service industry process before they are released to impact the customer. 5. Equipment FMEA 6. Maintenance FMEA 7. Concept FMEA 8. Environment FMEA BENEFITS OF FMEA: 1. Improve product/process reliability and quality. 2. Increase customer satisfaction. 3. Early identification and elimination of potential product/process failure modes. 4. Prioritize product or process deficiencies 5. Capture engineering/organization knowledge 6. Document and track the actions taken to reduce risk 7. Provide focus for improved testing and development. 8. Minimize late changes and associated cost. 9. Act as catalyst for teamwork and idea exchange between functions. STAGES OF FMEA: 1. Specifying possibilities a. functions b. possible failure modes c. root causes d. effects e. detection/prevention 2. Quantifying risk a. probability of cause b. severity of effect c. effectiveness of control to prevent cause. d. risk priority number. 3. Correcting high risk causes a. prioritizing work b. detailing action c. assigning action responsibility. d. checks points on completion. OMF751 LEAN SIX SIGMA

4. Re-evaluation of risk a..Recalculation of risk priority number

Leadership plays a key role in Six Sigma. This is because the entire success of a Six Sigma project lies in the support and interest of Top management. Top Management has a huge responsibility in driving the Six Sigma culture in an organization. Leadership should recognize Six Sigma as a management strategy, rather than using it as a tool. When a company adopts Six Sigma as a management strategy, the entire organization and all its departments will be channelized towards identifying and improving its processes.

OMF751 LEAN SIX SIGMA

Investing in Six Sigma Training and Resources: For successful implementation of Six sigma methodology the first step should be to hire trained and experienced Six Sigma resources (Probably Six Sigma Master Black belts & Black belts), and then train different levels of management in Six Sigma methodology.  Top management should ensure there are adequate staffs in Six Sigma roles to drive Six Sigma. Include Six Sigma Cost Saving in Management Goals & Review:  Along with other goals fixed for each department, Six Sigma cost saving should also be a management goal, which top management should review in each meeting. Thus, the employees will also start to see Six Sigma methodology as a part of their responsibility and start identifying project opportunities. Communicate the Importance of Six Sigma: Top management should let the employees know that Six Sigma is an important goal, and that the leadership views it as an important parameter in its business. Posters, email communications, addressing employees about their concerns related to Six Sigma adoption, and providing clarity on each one’s role in Six Sigma journey are some ways to communicate the message strongly to employees. Drive Six Sigma Projects: Management should create Six Sigma champions, who will identify projects and allocate resources for the projects. There should be intervention from the leadership when there are bottlenecks in the progress of projects. Also, leadership should conduct periodical reviews on the progress of projects. Recognize and support Employee Participation: The KPIs and responsibilities of the employees should include contribution towards Six Sigma journey. Apart from this, leadership should identify ways and means to identify extraordinary participation by employees and reward them accordingly. This will motivate other employees to work towards the Six Sigma initiatives. Review and Support: As the organization progresses in the path of Six Sigma strategy, the policies and rules framed at the beginning of the journey may need reviewing and modification. Leadership should identify these changes and ensure that the journey is in the right path and at right pace. Change Acceleration Process (CAP) Change Acceleration Process (CAP) is the process of moving the Current State of the Process/Service/Product to an Improved State by catalyzing (speeding up) the Transition State. Getting buy-in from Stakeholders - CAP depends on Leading Change, Creating a Shared Need, Shaping a Vision, Mobilizing Commitment Leading Change - Making the Change Last and Monitoring Progress. All implementation projects require a Champion who sponsors the change if they are to be successful Creating a Shared Need - The reason to change, whether driven by threat or opportunity, is instilled within the organization and widely shared through data, demonstration, demand, or diagnosis. The need for change must exceed the resistance to change Shaping a Vision - The desired outcome of change is clear, legitimate, widely understood, and shared OMF751 LEAN SIX SIGMA

Mobilizing Commitment - There is a strong commitment from key constituents to invest in the change, make it work, and demand and receive management attention Making the Change Last - Once change is started, it endures and flourishes and learnings are transferred throughout the organization Monitoring Progress - Progress is real; benchmarks are set and realized; indicators are established to guarantee accountability Changing Systems and Structures - Management practices are used to complement and reinforce change

ARMI (Approver, Resource, Member, Interested Party): ARMI model is a CAP tool used to assess each person’s role in the project during various phases of the project. ARMI is an acronym of A - Approval of team decisions R - Resource of the team, one whose expertise/ skills may be needed M - Member of team, with the authorities and boundaries of the charter I - Interested Party, one who will need to keep informed on direction and findings ARMI helps in defining the role of each individual within the project team. It helps in clarifying any ambiguity related to the roles and responsibilities of these individuals. Let’s look at an example of ARMI: Project Acceptability: Project Acceptability is based on the below equation: Effectiveness of a solution = Quality of a solution * Acceptability of the solution. Effective communication strategy for stakeholder Stakeholder consultation and engagement typically follows a recognized three-step process: notification, consultation, and participation. The public has the right to be concerned about your project, to ask questions about it, and even to oppose it. But every person should have the correct information to form her or his opinion. Meaningful consultation that involves ongoing two-way communication with a project representative increases understanding, clarifies the community’s preferences and values, and allows the proponent to understand how the public’s views can and should lead policy decisions. However, organizations often struggle with communication with their stakeholder groups. Factors that negatively influence communication include:  

Not understanding how to set up a stakeholder engagement project so it effectively communicates the organization’s intentions Suffering from a lack of focus when engaging stakeholders – and failing to define the 5 W’s (who, what, when, where, and why)

OMF751 LEAN SIX SIGMA

 

Having the wrong person representing the organization. This can be someone who is inexperienced or whose strengths lay outside the field of communication Company and stakeholder groups involving multiple representatives that change over time. Relationships get lost and communication history, or commitments that were made can be forgotten.

5 tips for an effective communication strategy for stakeholder engagement 1. Make sure all information regarding your project is presented in a transparent way. The more you share in an honest, factual and easy to comprehend format, the more likely it is that stakeholders will take the time to comprehend your intentions, what their role is, and how it may affect them. 2. Communicate with stakeholders in the manner that works best for them. Recognize that each person or community is different and select the most suitable communication channel – email, online platforms, social media, phone, or in-person group meetings . People should be offered a variety of options to communicate with you and provide their input. 3. Do not judge what your stakeholders value, instead seek to understand why. Keeping an open and curious attitude will help your team understand the history and concerns of your stakeholders. This open, curious attitude will help both sides reach creative solutions to overcome roadblocks, aligning values and interests in the process. 4. Provide feedback to stakeholders on how their interests and issues are addressed and resolved. Track commitments made to them and ensure project team members coordinate consultation events, share information, and assign tasks and follow-up actions. 5. Keep a careful record of all aspects of stakeholder communications that occur over time. This includes meetings, phone calls, emails, and commitments made. Misunderstandings and delays can be prevented if you can easily demonstrate the history of all aspects of communication with your stakeholders – which is especially challenging with multi-year projects that where representatives change over time. A tool like StakeTracker helps organizations stay on top of their projects by centrally managing all communications regarding the potential impacts of initiatives on the communities in which they operate.

OMF751 LEAN SIX SIGMA