Measure Up 6 Sigma and Libraries Lesley Farmer

Measure Up! 6 Sigma and Libraries Lesley Farmer and Alan Safer CSU Long Beach lfarmer@csulb. edu / asafer@csulb. edu

2 Does this sound familiar? I can’t get the articles I need! The catalog says the book is there, but I can’t find it. What does it take to get a new book on the shelf before it becomes old? No one uses our self-check out system. Should we subscribe to ebooks? Why isn’t online reference service used?

3 The Answer May Be 6 Sigma! …which is a Goal, a Measure, a Process, and a (set of) Tool(s) 6 • • Sigma is a management methodology Customer focused Data driven decisions Breakthrough performance gains Validated bottom line results

4 Example: Normal Distribution IQ Test Mean = 100 SD =15 99. 7% of people are between = [mean – 3 SD , mean + 3 SD] = [100 – 3(15), 100+3(15)] = [100 – 45, 100 + 45] = [55, 145] 95. 4% of people between [70, 130] 68. 2% of people between [85, 115]

Sigma (Distribution Shifted ± 1. 5 ) Process Capability PPM Defects per Million Opportunities Sigma is a statistical unit of measure which reflects process capability. The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per million defective, and the probability of a failure/error.

Why “Quality Improvement” is Important: A Simple Example • A visit to a fast-food store: Hamburger (bun, meat, special sauce, cheese, pickle, onion, lettuce, tomato), fries, and drink. • This product has 10 components - is 99% good okay? 6

Some Commercial Applications Reducing average and variation of days outstanding on accounts receivable Managing costs of consultants (public accountants, lawyers) Skip tracing Credit scoring Closing the books (faster, less variation) Audit accuracy, account reconciliation Forecasting Inventory management Tax filing Payroll accuracy 7

Six Sigma A disciplined analytical approach to process and product improvement Specialized roles for people; Champions, Master Black belts, Black Belts, Green Belts Top-down business) driven (Champions from each BBs and MBBs have responsibility (project definition, leadership, training/mentoring, team facilitation) 8

What Makes it Work? Successful implementations characterized by: Committed leadership Use of top talent Supporting infrastructure Formal project selection process Formal project review process Dedicated resources Financial system integration Project-by-project improvement strategy 9

Data Driven Decisions Y= f (X) To get results, should we focus our behavior on the Y or X ? • • Y Dependent Output Effect Symptom Monitor Response • • X 1. . . XN Independent Input-Process Cause Problem Control Factor Why should we test or inspect Y, if we know this relationship?

Basic Implementation Roadmap Identify Customer Requirements Understand Define Entire Value Streams Vision (Strategic Business Plan) Deploy Key Business Objectives - Measure and target (metrics) - Align and involve all employees - Develop and motivate Continuous Improvement (DMAIC) Define, Measure, Analyze, Improve Identify root causes, prioritize, eliminate waste, make things flow and pulled by customers Control -Sustain Improvement -Drive Towards Perfection

12 DMAIC is a structure problem-solving technique consisting of the following steps: Define Measure Analyze Improve Control DMAIC is usually associated with six sigma, but it can be used with any business or process improvement effort

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Problem-Solving What do you want to know? How do you want to see what it is that you need to know? What type of tool will generate what it is that you need to see? What type of data is required of the selected tool? Where can you get the required type of data?

15 Projects Essential part of DMAIC Needs: quality variation, unsustainable costs, ID process capability and problem basis Breakthrough opportunity Financial systems integration Value opportunity of a project must be clear Project selection Project management

16 Case Study: University of Arizona Study ILL article borrowing process Why: improve service to meet increased demand Drivers: customer expectations, cost reduction, leverage technology Personnel: leadership, staff involvement

17 Define Phase Reduce costs Focus on articles (many processes possible) ID customer expectations relative to turnaround time, scan quality, priority value Fill 80% of article requests within 3 days Premise: no additional staff or $

18 Measure Phase Current process capabilities through flow charts, performance matrixes, data collection sheets

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20 Analyze Phase ID root causes of problems in order to eliminate or reduce them Tools: fishbone diagram, histogram, Pareto chart, Xm. R chart

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Improve Phase Cause: variations and delays in searching and delivery on evenings/weekends Cause: lack of lender staff evenings/weekends Cause: Choosing right ISSN Lags in searching difficult requests Pilot/evaluate support solutions based on impact, cost,

25 Implemented Solutions Use downtime of other evening/weekend staff Replace student workers with FT/temp staff Add staff hours on evenings/weekends Train Schedule search requests Encourage other libraries to increase evening/weekend staff, and use ODYSSEY

26 Control Phase New quality standards Responsibility/timeline for implementation Method to measure user satisfaction Methods to measure process control and capability Progress reports

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28 Lessons Learned Increased cost for document supplier wasn’t worth it Saved $2/request (even with more requests) Use ILL system that tracks detailed data including processing steps Get monthly data summary

29 Next Steps Let’s work together! Lesley Farmer lfarmer@csulb. edu Alan Safer asafer@csulb. edu

30 Q&A

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32 2. 2 The Define Step

33 A process map or value stream map may also be prepared. These should be completed by at least the end of the Measure step.

34 The Define Step

35 The Define Tollgate

36 The Measure Step Purpose is to evaluate and determine the present process state Identify key process input variables (KPIV) and key process output variables (KPOV) Data – from historical records, from sampling, from observational studies Histograms, box plots, Pareto charts, scatter diagrams, stem-and-leaf diagrams may all be useful In some businesses, the measurement system must be developed Measurement systems capability may be important

37 The Measure Tollgate

38 The Analyze Step Determine cause-and-effect relationships Sources of variability – common cause versus assignable cause Tools – control charts, hypothesis testing, confidence intervals, regression models, failure modes and effects analysis Discrete event simulation

39 The Analyze Tollgate

40 The Improve Step Process redesign to reduce bottlenecks Mistake-proofing Statistical tools – particularly designed experiments DOX can be applied to either the physical process or a computer model of the process Pilot test the solution to confirm that it will solve the problem

41 The Improve Tollgate

42 The Control Step Complete all remaining work on project Provide the process owner with a process control plan Training documents (if appropriate) should be provided Methods and metrics for future audits Transition plan to the new process might include a validation step

43 The Control Tollgate