LSSG Green Belt Training Control How do we

LSSG Green Belt Training Control: How do we make it happen at a controlled speed? 1

DMAIC Six Sigma - Control l Implement Controls l Control Improve l Standardize l Analyze Define Measure l Determine process capability, implement controls to ensure continuance; assign process ownership and manage organizational change Create standard operating procedures; create and implement training programs; document project Evaluate Benefit l Calculate the profit of the project and identify opportunities for replication 2

Agenda for Control 1. 2. 3. 4. 5. 6. 7. Standardization Financial Benefit Change Management Process Monitoring Process Capability Response Plan Closure 3

Standardization and Documentation Role of SOP To create uniformity, consistency and reliability, to reduce errors; to support training needs Steps necessary to create SOPs: l l l Purpose and frequency of task Who will perform the task? The steps involved Corrective actions if performed incorrectly Timing for updates and revisions 4

Benefits of Standard Work l Allows for Monitoring and Control l Reduces Process Variation l Provides Input for ISO 9000 Certification l Document what you do, and then do what you have documented! l Helps Maintain the Gains from Improvement Projects SOP Link: osg. ivdgl. org/. . . / Operations/Critical. Update. SOP 5

Estimating Financial Benefits Benefit Estimation l l At start and end Decide computation method early Conservative and defendable Time value of money Cash Flow High Estimate Benefits Issues l l Low Estimate Projection for 1 to 2 years only Hard and soft benefits Certified by Finance Dept. Treat this subject with great care! 6

Estimating Benefits Case Study #1: Improvement, or Not? ! Prior to the implementation of an improvement project, the mean number of defects was 80 per week, and the range of defects was 40 to 120. The improvement project yielded a 25% improvement in the defect rate, but no change in the range. The team reported the improvement to management. However, no change was observed by the customer. Why Not? 7

Estimating Benefits Case Study #2: Estimating Future Benefits An improvement project yielded an estimated $100, 000 per year. The team reported a project benefit of $500, 000, as they believed that the project’s benefit would last for five years. What is your opinion? 8

Estimating Benefits Case Study #3: Estimating Future Benefits An improvement project yielded an estimated $50, 000 per year, based on a calculation that one less person would be needed for a task, once the new improved process is implemented. The CFO said that she would only agree to certify this benefit if the affected department would reduce their salary budget by $50, 000 for the next year. What is your opinion? 9

Change Management CURRENT STATE Employee Skill Motivation Process Ownership User Acceptance Process Needs Implementation Plan Management Signoff Rollout Validate Process Others Training Materials and Plans New Equipment Space Requirements/Layout Changes Preferred state Resistance to change TRANSITION STATE Anxiety and stress Significant dislike FUTURE STATE Unknown Undesired “People Side of Change” Presentation: http: //www. purdue. edu/hr/ppt/APSACHadley. ppt#1 10

Monitor l l l Implement Visual Controls Monitor Metrics Control Charting Process Capability Analysis Periodic Reviews Audit Controls 11

Choosing the Right Control Chart Data Type Attribute P-Chart (% Defectives) I-MR (or X-MR) Chart (n = 1) Count Continuous X Bar-R Chart (n = 2 to 5) U-Chart (# of Defects/Unit, or DPU) X Bar-S Chart (n>6) Note: The NP Chart and C Chart are alternatives to the P and U Charts, respectively, but can only be used for constant sample sizes. 12

Process Management Control System Process Name: Travel Management Primary Customer of Process: Business Travelers Outcome Indicators (Ys) Process Map Position Step/ Time Traveler Customer’s CTQs: Accuracy Timeliness Travel Agent -Name -Numerator & Denominator - Specification Y 1 = % of Itineraries with a Policy Violation Outcome Indicators (Ys): % of Itineraries with a Policy Violation % of Inaccurate Itineraries % of Expenses not Reimbursed within 15 days of post Upstream Indicators (Xs) -Name -Numerator & Denominato r or Description Indicator Chart Type X 1 = % of Lowest Airfare P chart Travel Agency Report Weekly Connie Consult with Group Travel Agency Report Weekly Connie Activity Report Weekly Tim Consult with Group I-MR Activity Report Weekly Tim X 2 = % of 7 day advance tickets Y 2 = % of Inaccurate Itineraries Y 3 = % of Expense Payments not paid within 15 days of Post X 3 = Count of Ticket Problems X 4 = Time from Post to Submit Arrange Travel X 5 = Time in Days from Submit to Approve X 6 = Time in Days from Approve to Pay (Client) X 7 = Time in Days from Post to Pay (AMEX) Rev # Date Misc. Information Capturing Data U chart I-MR “Physical ” Item to Check When to Check Change Log – Describe Revisions Who Performs Check Recovery Action -Indicator Formula -Procedures -Comments Consult with Travel Agency P&CMS process may need to be measured. By Apppr 13

Response Plan l l l Mistake Proof Identify Gaps Develop Action Plans Implement Dashboard Triggers Monitor Employee Suggestions Foster Continuous Improvement 14

Project Closure l l l Identify key lessons learned Update knowledge management repository Identify opportunity for replication Revise budgets to reflect benefits Celebrate and sunset teams Communication to stakeholders 15