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Chapter 3 Lean Sigma Projects. What is the relationship of Six Sigma to Lean Sigma? LEAN Targets...
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Transcript of Chapter 3 Lean Sigma Projects. What is the relationship of Six Sigma to Lean Sigma? LEAN Targets...
Chapter 3Lean Sigma Projects
What is the relationship of Six Sigma to Lean Sigma?
LEANTargets process
efficiency through waste reductions
SIX SIGMATargets process
effectiveness through variation reduction
LEAN SIGMABoth strategic and tactical management system to
produce quantum improvements.
What is a Project?
• Are all Programs or activities Six Sigma projects?• Project is:
– Time-limited– Unique– Consists of interrelated activities – Undertaken for a purpose– Formal investigations guided by scientific knowledge– Success results from thoughtfully designed outcome– Carefully planned, resourced, manages and reviewed.
• Program is:– Larger effort than a project– Group of related projects coordinated together– Often will create synergies that could not be realized if all projects
were not done in concert.
Common Project Guidelines
• Project Identification - Must provide money and/or time tangible value.• Project Returns - Improvement must be viable, visible and verifiable in
terms of $• Project Responsibilities - Champion and X-belt approval and
responsibility.• Project Scale - Capable of delivering hard benefits.• Project Criteria
– Proper scope, depth and timing– The DMAIC improvement process can be applied to realize its projected
benefits– The targeted process and forecasted benefits can be clearly defined and are
rationally measurable.• Project Activation – Prepare a project charter, receive management
approval and execute in accordance with plan.
Where do project ideas come from?
Top-DownWill align local needs with
corporate goals.
Identify major business issues and objectives, then assigns a
champion.
Team identifies
processes and opportunities.
Assign team to solve these
specific problems
Managers’ identify areas of waste,
shortages, quality issues, unclear
requirements, etc..
Bottom-UpEnsure key opportunities are
addressed.
Balanced approach must be taken.
Project Selection Methods
Selection Method Strengths Weaknesses
Pareto Analysis • Warranty costs• Rework costs• Production costs• Defect measurements
•Easy to apply • Based on 1 or few criteria• PPI offers no insight of outcomes
Cost of Poor Quality • Based on cost only (excl. intangible)• Offers no insight of outcomes
Project Prioritization Matrix• Top-down approach • Based on CE matrix
•Align with strategies•Sr. mgmt involved
• Difficulty in setting up meetings
Project Clustering • Top-down approach
•Align with strategies•Sr. mgmt involved
• Difficulty in setting up meetings
Project Selection Methods
Selection Method Strengths Weaknesses
Value-based Mgmt • Mgmt sets project priorities
• Requires thorough assessment
• Justify projects with shareholder value only
Quality Function Deployment /Strategy Deployment Matrix • Top-down approach
• Align with strategies• Sr. mgmt involved
• Requires more training/ time/ experienced facilitator
Theory of Constraints (TOC)• Uses resource constraints
• Can identify projects at operation/process levels
• Analysts must be trained• Long analysis period
Political Choices • Lack objective• Low morale• Impedes team-based culture
What should a project do?
Lean Sigma projects should focus on those processes and critical-to quality characteristics that offer the greatest financial and customer satisfaction leverage.
Y=f(x) Not all (x) inputs exert the same leverage on the (Y) output…
find the critical few.
Address at least one element of the organizations key business objectives.
FOCUS ON:• Process Quality Focus (i.e. critical manufacturing process)
Best method to attack root causes• Product Focus (i.e. iPhone, Droid….)• Project Cost Savings Focus• Problem Focus (What is the biggest fire to address?) Can be shortsighted
How do we apply DMAIC to Project Planning?
PHASE GOAL MILESTONES
Define Establish focus Identify problematic output
Review output history
Describe output process
Measure Create baseline
Evaluate process efficiency
Qualify measurement system
Establish output capability
Analyze Discover causes
Diagnose output variation
Identify possible causes
Isolate critical factors
Improve Devise solution
Examine factor effects
Optimize factor settings
Prescribe factor tolerances
Control Sustain benefits
Verify solution repeatability
Ensure process stability
Monitor output capability
Tabular representation of the DMAIC goals and related milestone activities (source: M. Harry and R. Schroeder, Six Sigma, Doubleday, 2000.)
What kind of things should be measured?
MEASURE• Defects per million
opportunities• Net Cost Savings• Cost of poor quality• Capacity• Cycle time
CREATE
BASELINE
TO DETERMINE• How current process is working• How process should work• How much process can be improved• Magnitude and direction of each
process improvement on CTS• How much impact will be in cost
savings.
Measure the critical YY=f(x)
Y could be CTQ, CTC, CTD, CTP, or CTS
What should NOT be a Lean Sigma Project
• A task that is simple and has an obvious solution. Should be a “Just Do it” task.
• No outcome characteristics critical to customer satisfaction.• Projects without available data to measure .• Project where resource limitation could affect ability to complete the
project (especially IT resources) or proposed project uses software that is not company-compliant.
• Save the world projects.• Project that will take much longer than 4-6 months (divide into
smaller projects).• Initial training project that is too large or complex.
Establishing a Project Charter
• Created to define project and set goals. Blueprint.
• Must be approved by leadership team
• May be revised over the life of the project.
• Six Sigma Process calls on a deployment champion to launch projects.
Typical Elements
• Project Demographics• Problem Statement• Project Goals• Project Scope• Team Members• Team Leader• Project Sponsor• Process Description• Process Owner• Performance Measures• Project Timeline• Success Criteria• Project Milestones• DMAIC Tollgates
SAMPLE CHARTER
• Can vary across companies.
• Variety of samples can be found on web.
• This one is from: http://www.6sigma.us/.../Six%20Sigma%20Project%20Charter%20Template%20v1.doc
HW1: Find a published 6 charter on the web and identify the elements included. What is it missing? Do you think it is a good example? Why?
Other important 6 project documents
Formal Project Authorization– Signed by champion– Approved by Master Black
Belt– Local IT and Site controller
for review and approval– Business unit head/
executive manager should review and authorize.
– Becomes the basis for the Charter
DASHBOARD to summarize progress of projects – Activities of the week– Schedules– Project meetings– Financials– Hot Issues
Can take
variety of
forms
Class Project
Form Team of 2-3
Choose a project where you can apply Lean Sigma tools and analysis
Due to short time period you will focus on Define, Measure and Analyze steps.
A project could be
1. Any process that addresses wasted activities
2. Any outputs that are not meeting their CTQs (Critical to Quality) goals.
3. Any task that you must rework to get it right
4. Assignments that normally take more than a week because you have not found a solution yet
Consider opportunities for improvement in your jobs, dorm, or FIU departments. Key will be having sufficient access in our defined time period.
Class Project Deliverables
• Project Charter (Due February 8, 2011)• Written summary of Define, Measure, Analyze results
and examples. (Due March 1, 2011)– Show all charts, graphs, etc… Use appropriate Lean Sigma
tools– What would a project dashboard look like for this project if
implemented.– What resources would be needed to implement, what are the
roadblocks?
• 20 minute team presentation (focus on tools, and why you used them.) (April 19/26, 2011)