SIPOC Failure Mode Identification Methodology

Joel Miller - Certified Lean Six Sigma Black Belt

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VOP Workshop using the SIPOC FMI Methodology

Joel MillerCertified Lean Six Sigma Black Belt


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Voice of the Process Workshop

Investigating the opportunities to better meet the goals of your organization.


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Why should your company conduct a Voice of the Process Workshop?

An opportunity to explore why a process is not meeting my current business requirements for quality or timeliness.

An opportunity to reassess the requirements and deliverables of a process as the needs of the organization continue to change

An opportunity to examine the process gaps in the current and potential performance of a process.


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What is Voice of the Process Workshop?

A VOP workshop explores a business process and identifies the Process Complexity Throughput Problems Quality Concerns Organization Issues

These increase the complexity and slow down key business processes and prevent a company from achieving their continuous improvement goals.

These are usually identifiable as In Process or Customer Requested

Rework Multiple “Time Traps” that constrain the

throughput and capability of a process Cost Reduction Targets Customer Needs and Processes have

Changed

An opportunity to explore why a process is not meeting my current business requirements for quality or timeliness.


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A VOP workshop is also used to identify opportunities that cannot currently be realized within the current capability of the process.

The are usually identifiable as A Customer has updated their

technology and processes A Customer has expressed that they

have new Requirements and / or Needs

An opportunity to reassess the requirements and deliverables of a process as the needs of the organization continue to change


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A VOP workshop is also used to identify organizational or design gaps within the current processes.

These are usually identifiable as The Customer has benchmarked their

process and has identified that the current process does not perform as well as the industry or its competitors

The Customer process is not capable of meeting customer requirements and expectations

The Customer has identified benefits for outsourcing existing in-house services

An opportunity to examine the process gaps in the current and potential performance of a process.


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Workshop Activities

Explore how the selected business

process is integrated within

the overall business of the client

Develop A detailed view of the process by

stepping through each input transforming

activity to create the desired output

Identify the hand-offs within the process

including key inputs and deliverables, as well as

the scope and context of the process

Investigate the throughput requirements

and capabilities of the process

Brainstorm and identify the problems, concerns, or issues that increase

the complexity and slow down the process and prevent the customer from achieving their

business goals Identify the resources

required to execute and support the process

including staffing, tools, systems, and infrastructure


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Workshop Documentation and Recommendations

Key Deliverables: Process Narrative SIPOCr Process Metrics and Voids Process Problems, Issues &

Concerns Process Resources Identified Customer Needs Affinity Diagram Benefit-Effort Matrix

An “At a Glance” view of the Current State of the Process that Identifies the Opportunities to Improve the Process

A recommend process improvement plan for how to Lean the process and improve the Sigma level of the process based upon the opportunities exposed during the workshop

Opportunities for Xerox solutions that can meet the current and future business needs of the process Customer’s

A foundation for process improvement


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Who participates in the workshop?

The workshop is a facilitated ½ day engagement using the Xerox Lean Six Sigma methodology to identify the customer’s internal business priorities and opportunities where Xerox Solutions are matched with critical customer requirements.

Identifies and prioritizes opportunities for the client to improve their document processes related to Enterprise Print Services (EPS)

Pre-Workshop Information Project sponsor to identify

Key department objectives Primary challenges and barriers The key Process “Customers”

Workshop Participants Project Sponsor Process SME’s Process Customer(s) IT Support


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Methodology Slides

How to conduct the VOP Workshop using the SIPOC FMI Toolset


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Steps for doing a VOP Workshop

1. Develop a SIPOCr of the process as it is intended to be performed.

2. Identify all of the Failure Modes buried within the process.

3. Write a Process Narrative to solidify the scope and context of the process.

4. Capture the known and unknown process metrics.

5. Brainstorm additional Failure Modes, Issues and Concerns for the process.

6. Capture all of the process enablers that support the process.

7. Affinitize the Failure Modes

8. Develop the Failure Mode Effects for the Affinitized Groups

9. Restate the Failure Modes and Effects as Opportunities and Needs

10. Evaluate the Benefits and Efforts to realize the Opportunities and Needs


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What is a SIPOCr FMI Methodology?

It combines the process using the Lean Six Sigma Methodology to develop a SIPOCr for a process and identify the Failure Modes that increase the complexity and slow down the process and prevent the customer from achieving their business goals.

Failure Modes are the sources of: Customer problems, concerns, or

issues Process, Cost, and Throughput

Improvement Opportunities The process is not capable of

meeting customer requirements and expectations

Organizational Gaps that prevent the Enterprise from meeting its needs or goals

It is also a useful tool methodology when there is limited process data available.


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What is a SIPOCr Chart?

Supplier-Input-Process-Output-Customer-requirements (SIPOCr) Chart Provides an “at-a-glance” perspective

of the process steps, in conjunction with key suppliers, inputs, outputs, customers, and requirements

Identifies boundaries (start/stop points) for process.

Defines the scope (magnitude) of the process.

Illustrates the relationships between suppliers, inputs, and the process.

Defines the key suppliers and customers (internal and external).

Provides linkage to the “upstream” and “downstream” processes.

Suppliers – Significant internal/external suppliers to the process

Inputs – Significant inputs to the process i.e. material, forms, information, etc.

Process – The activities that transform the inputs into outputs

Outputs – Significant outputs to internal/external customers

Customers – Significant internal/external customers to the process

Requirements – Significant Service Level Agreements that are necessary for fulfilling the customer expectations for the outputs


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Why combine Failure Mode Identification with the SIPOCr?

As the process is being described, it is inevitable that the Failure Modes will be exposed as decision points, and delays for clarification of processing requirements Failure Modes are categorized as input, in-

process, or output failures Input failure modes do not allow the

process to start because information or materials are not available

In-process failure modes stop or delay the process due to processing errors (In-process Rework) or needs for clarification

Output failure modes do not meet the needs of the customer requirements and result in the customer requiring the process output to be rejected or reworked

Prepare the Electronic Oringal

Is the electronic

original attached to the

Request?

Contact the Customer and Request the Original

Wait for the Orginal to Arrive

No

Yes


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When do you use a SIPOC FMI?

It is used prior to the launch of a project to collect all of the process steps as the process is intended to be performed This may result in a high level overview of a process or a detailed step by step

investigation of a process It explores the process as it is intended to be executed and all of the contributing

factors that increase the process complexity The information collected is used as inputs for a developing the Detail Process

Map, Criteria Selection Matrix, Failure Mode Effects Analysis and Value Stream Map

It exposes what data is available within the y=f(x) of the process It allows process data to be collected and analyzed based upon a Customer

Value criteria


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How do you complete a SIPOCr

Step 1. Process Walk through the process activities as they are

intended to be performed. Use a noun-verb sequence to describe each broad step, like “Collect information,” “Enter information,” etc.

Brainstorm any additional gaps in the process. Identify organizational or workgroup boundaries.

Step 2. Inputs List the Information and Materials that will be

transformed within the process. (Resources, Tools, and Infrastructure will be captured separately as enablers.)

Step 3. Suppliers List all of the sources of the Inputs

Step 4. Outputs List each of the Outputs produced by the

process. Step 4. Customers

List each of the Customers that receive the Outputs

Step 5. Requirements Describe the key features/characteristics of

the Output for each Customer (e.g. SLA’s) Step 6. Validation

Brainstorm how the process steps can be verified. (e.g. Walk the Process)


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Identify Failure Modes within the Process

Problems, Concerns, or Issues (What Goes Wrong? ) These prevent the customer from achieving

their goals. These are usually identifiable as

In Process Rework Customer Requested Rework

What stops the process? Missing Information Insufficient Supplies

Step 1. Brainstorm Input Failure Modes Walk through the “As Is” process activities and

brainstorm any activities that do not allow the process to begin stop or delay an activity.

Use a noun-verb sequence to describe each broad step, like “Missing Order,” “Unclear Requirements,” etc.

Step 2. Brainstorm In-process Failure Modes What are activities that stop or delay an

activity from being completed or cause in-process rework.

Step 3. Brainstorm Output Failure Modes What are the activities that produce output

that is rejected by the process customer. Step 4. Brainstorm any additional gaps in

the process. Identify organizational or workgroup

boundaries.


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What is the Process Narrative?

A Narrative is provided to describe the context and scope of the SIPOC By developing the narrative, a project

team clarifies context of the targeted improvement process and the scope of the project.

Example Project Scope Process Start Narrative:

The process begins when the customer submits a request to the Xerox Document Print and Production center with an electronic original through the Web Job Submission portal.

Process Value Add Narrative: The electronic original is prepared for printing by

converting the original into a print-ready format, producing the requested output, and informing the customer of the job status.

Process End Narrative: The process is complete when the output

produced is scheduled for delivery to the customer and the status of the request is changed to completed.


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SIPOC FMI Quality Companion Form

Page 2

Page 1


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What type of process Metrics do we need?

Quality, Cost, Delivery and Risk Metrics for the Input Processes (e.g. Demand) In-process (e.g. X Measures) Output (e.g. Y Measures) It is not uncommon that the project team will only have data concerning Demand

and Output. This is an opportunity to reveal limitations in how the process is currently measured

and managed


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What are the Enablers and Additional Information?

Direct Labor Staffing List the Full Time, Part Time and other Labor related to this process

Information & Data Collection Systems List all of the systems that touch the process that could be used within the scope

of the process Each system has the potential to provide data about the process

Equipment & Process Tools Required This is a complete Bill of Material of Tools required to replicate the process

PC’s & Printers, Production Equipment, Finishing Equipment, Furniture & Fixtures, Customer Network Connectivity, etc.


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Are there other Failure Modes?

Deficiency (What Do I not Have Enough Of?) These are opportunities they cannot

currently realize. These are usually identifiable as

Delays in the process for Materials, Information, Data, Systems, or other Resources These may already be describing needs or

benefits, but may need to be reworded.

Positioning of the Operational Issue (If we could be empowered) These are organizational

constraints that limit the capabilities of the process.

These are usually identifiable as Delays in the process waiting for direction as to how to proceed with the request. These may be describing boundary needs but

may need to be reworded.


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What are the unmet needs and requirements of the Organization?

Customer Needs are the positive restatement of customer Problems, Concerns, Issues, or Organizational Gaps independent of the product or solutions offering. Affinitize all of the Failure Modes based upon common problems, issues,

concerns, gap measures. Record the multiple Effects experience from this common Failure Mode

Use a noun-verb sequence to describe each broad step, like “Time To Process Too Long,” “Poor Performance,” “Missed Due Date”, etc.

Name the Affinity Group with a common Noun-Verb Problem Name

Create a positive restatement of the Failure Modes and Effects as Customer Needs and Opportunities


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Benefits and Effort Analysis to Meet Identified Customer Needs and Opportunities

Using the Customer Needs and Opportunities, Develop the Benefits and Effort Matrix. When estimating effort, use estimated project

staffing, and duration. Benefit-Effort ratio = Benefits ÷ Effort Remember, your conclusions are only as good

as the estimates they are based on!

STEP 1 The team first identifies the various resources required for the activities to be completed within the opportunity or customer need to be evaluated.

STEP 2 Effort estimates are provided based upon consensus from the assembled project team.

STEP 3 The project team next discusses the various options, and positions the opportunity on the B&E Matrix chart.

STEP 4 Adjustments are made by comparing the benefits/effort ratios for similar Customer Needs and Opportunities.

STEP 5 A final decision is made and the benefit-effort analysis and is included in the proposed process improvement plan.


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Benefit Effort Analysis Charts


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Benefit Effort Analysis Form


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Project Desirability Plots


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Project Desirability Form


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Next Steps After SIPOC FMI

Analysis tools for SIPOC FMI data.


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Detail Process Map or Value Stream Map

Information from the SIPOC and FMI are incorporated into a Detailed Process Map prior to the criteria analysis workshop and is validated with the project team A Value Stream Map is possible depending on the availability or process data

Start ? EndYes

No

Y PCT

Do

Action Hold


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Critical Customer Requirements Analysis

The Critical Customer Requirements analysis is completed as part of the Analysis Workshop A Criteria Matrix analysis of the Process Steps (i.e. Page 1) is evaluated based

upon CVA BVA NVA Contribution to Process PCT Does the process trigger a Failure Mode


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FMEA Analysis

The FMEA analysis is completed as part of the Analysis Workshop Discussion with the project team reveals the Potential Failure Effects from each of

the Failure Modes identified as well as Severity Occurrence Detection Actions That Could be Taken

SIPOC Failure Mode Identification Methodology

Documents

Transcript of SIPOC Failure Mode Identification Methodology