Embed Size (px)
DESCRIPTION
Introduction to Lean Six-Sigma. Presentation from my 1-Day Workshop
Citation preview
WHAT is lean six-sigma?
(And what is it not?)
• Six-Sigma is process-focused
Fix the process, and the outcome shall take care of itself.
• A process has measurable outcomes
Measurement is a prerequisite to improvement
• The outcomes follow the laws of statistics
Normal Distribution
Tightening the bell-curve means reducing the spread
to make a process reliable
When acceptable variation is within 6 of the mean, the no. of defects is only 3.4 per million opportunities.
ALWAYS ALWAYS ALWAYS ALWAYS ALWAYS
Tackle variation before adjusting the mean
LEAN SIX-SIGMA
Lean Six-Sigma is a
framework that provides
a structured approach to
eliminate waste and improve
customer satisfaction
framework
structure
waste
customer
IS
IS NOT
IS
IS NOT
IS
IS NOT
IS
IS NOT
Generic architecture that can be customized to the needs of a specific problem
An opportunity for to knock oneself out with statistics
A series of logical steps with a quantifiable business outcome
A substitute for work!
A defect, a.k.a. customer pain
Second-guessing the customer
The consumer of a process output
Only the consumer of the company’s product or service
WHERE is lean six-
sigma applicable?
SIX-SIGMA HAS A BAD REP!
NO PAIN NO GAIN
NO PAIN NO PAIN
Employees set their own goals based on team goals
Employees are the source of ideas and managers facilitate successful
outcomes Employees are responsible for their career path and managers provide development feedback to set them up for success
Managers set goals for employees
Managers hand out report-cards to employees judging past performance
Culture of Empowerment Six-Sigma likely to succeed
Culture of Dependency Six-Sigma likely to fail
An employee must take manager’s permission when stepping outside
the scope of assigned tasks
HOW DOES LEAN SIX-SIGMA APPLY TO SERVICES AS FOR MANUFACTURING?
MANUFACTURING OR SERVICES
OUTCOMES ARE PRODUCED BY A
LEAN PRINCIPLES CAN BE APPLIED TO:
•Suitcases lost at an airport •Rooms not available in time for check-in at a hotel
When acceptable variation is within 6 of the mean, the no. of defects is only 3.4 per million opportunities.
Development Testing Deployment Launch App Support Engineering
Constructs products
Assures fitness for use
Unpacks and installs
Imparts training
Help-desk
Maintenance
BEFORE Lean Six-Sigma
Each department has its own
view of success
Firmly rooted in its specialization
The success of one has very little to do with that
of
AFTER Lean Six-Sigma [mythological interlude]
BRAHMA [God of Creation] SHIVA [God of Destruction]
VISHNU [God of Sustenance]
D
T
S T
D
S Creates new products
Assures fitness for use
Ramps-up users quickly
Channels change-requests
Refines and improves product
Assures system integrity T
D
S Ramps-down usage
Retires old product
BUILD PRODUCT SUSTAIN PRODUCT RETIRE PRODUCT
Development Testing Support Helpdesk D T S
AFTER Lean Six-Sigma
Mindset spills-over departmental lines as Functions participate in acts of creation, sustenance and destruction
to serve a customer through the IT product lifecycle
HOW shall I apply lean six-sigma?
BUSINESS CONNECT
DEFINE
Effort must
connect with the business of the organization.
1. Customer Requirements
Voice of Customer (Voc) State the customer’s pain area • Starting point for
launching an effort • Speak the customer’s
language
Return on Investment (RoI) Build the Business Case
E.g. An initiative to reduce the volume of customer support
requests may use a template for RoI as
Cost to support tickets on recurring basis
v. Cost to implement
application-fix
DEFINE
Effort must
connect with the business of the organization.
2. Process Flow
Value-stream mapping with SIPOC
SUBWAY MAP
The focus is on getting a passenger from Point A to Point B
S
I
P
O
C
1. A process is a series of steps
2. Each step is a verb representing an action taken, such as
• Define • Plan • Analyze • Submit • Summarize
3. The action adds value – or it should be eliminated
S
I
C
1. Each step in a process produces an outcome
2. The outcome is a noun, representing output delivered, such as:
• Product Definition • Forecast of Sales
3. The outcome is associated with Critical to Quality metrics (CTQs)
P
O
S
I
O
1. Each output has an intended recipient called customer
2. The customer signs-off on the output based on its CTQs. S/he may: • Accept
unconditionally • Accept conditionally,
with left-on-table items clearly listed
• Reject
P
C
P
I
O
C
1. A process consumes inputs
2. Each input is a noun, representing an input consumed, which could be the output of a previous step
3. Each input may be qualified by CTQs and require the sign-off of process owner
S
P
S
O
C
1. The provider of an input is called supplier
2. The supplier of an input is accountable for satisfying CTQs and negotiating sign-off by customer
I
DEFINE
Effort must
connect with the business of the organization.
3. Potential
1. Project Title &
Description What is the project?
2. Project Manager &
Authority Level Who is given authority to lead the project and can he/she determine, manage and approve changes to budget, staffing, schedule, etc.
3. Business Need
Why is the project being done
4. Business Case
Financial or other basis that justifies the project
5. Resource Pre-
Assignment Men & Materials
6. Stakeholder Analysis
Who will affect or be affected by the project – as known to date.
PROJECT CHARTER
DEFINE
Effort must
connect with the business of the organization.
3. Potential
SMART Goals
• Specific
• Measurable
• Attainable
• Realistic
• Time-bound
7. Deliverables
End-result of the project in terms of specific outcomes and the tangible form in which they will be delivered.
8. Constraints &
Assumptions A constraint is any limiting factor and an assumption is something taken to be true but which may not be true.
6. Stakeholder Analysis • Stakeholder
Requirements as known
• Triple Constraints Model (Pentagon)
•Sponsor
Authorizes the project.
PROJECT CHARTER
Risk
DEFINE establishes there is a problem.
MEASURE sizes the problem, and VALIDATES some of the assumptions. Is it as big as we thought? BIGGER?
4. Refined Project Definition
Measurement Plan To collect data to corroborate the business case made in DEFINE phase.
Run Chart
5. Capable Measurement System
6. Data Collection
MEASURE
Cast the
objective
in measurable
terms.
Data Speaks! • What data is relevant to
collect .. • .. to establish the magnitude
of the problem? • How it shall be collected? • How it shall be presented?
FIND THE “Y” AS IN
Y characterizes the process in a way that the customer cares about
)(xfy
C O P I S
MEASURE
Cast the
objective
in measurable
terms.
Data Speaks!
S I P O C
Traditional six-sigma treats “y” as a measurable characteristic of the process output
Lean Six-Sigma, “y” is simply something about the process that the customer would care about
Lean Six-Sigma, “y” can simply be the number of tickets logged by an IT Helpdesk in a particular category.
MEASURE
Cast the
objective
in measurable
terms.
Data Speaks!
CASE-STUDY
Background One wireless company had a 17% (170,000 parts per million) level of rejected service orders. There were over 30,000 errors per month, which, at an average cost of USD 12.50 to fix (wage cost only), cost USD 375,000 per month. Over 50 temporary workers had been hired to deal with the 2-month backlog of unfixed errors. The objective was to cut this level of rejects in half (9%) by the end of the year.
RUN CHART – Defects per week over a 6 month window
PARETO – 80% defects from 6 transaction codes
As
information
systems get
more complicated ..
.. there are more moving
parts and interdependencies
The requirements for adding, changing, and deleting data are often too loose, too tight, or nonexistent, which leads to errors and rejected transactions that must be corrected manually by people hunched over
computer terminals for 8 hours a day.
MEASURE
Cast the
objective
in measurable
terms.
Data Speaks!
CASE-STUDY
Outcome Programmers took 4 months to implement the solution. The changes completely eliminated the two top service-affecting errors, and three of the four record-affecting changes. It cut total errors by 77%. This reduction translated to USD 299,426 per month in savings—over USD 3 Million per year.
Root-cause analysis showed that the top categories could be eliminated by baking appropriate business rules into IT
D
T
S T
D
S Creates new products
Assures fitness for use
Ramps-up users quickly
Channels change-requests
Refines and improves product
Assures system integrity T
D
S Ramps-down usage
Retires old product
BUILD PRODUCT SUSTAIN PRODUCT RETIRE PRODUCT
Development Testing Support Helpdesk D T S
A significant chunk of lean projects can originate in the maintenance phase of the lifecycle Although projects can start in any phase.
How does the support
helpdesk see itself?
(a.) I am here to resolve as many tickets as fast as
possible (b.) Why do these
tickets arise in the 1st place? I am here to
eliminate tickets for good.
ANALYZE
Find the root causes
and identify the vital few.
Group Activities • Brainstorm • Sticky-Notes
Software • Excel • QI Macros for SPC • Minitab
8. Ranking & Prioritization
Statistical Tools • Pareto Analysis • Ishikawa • ANOVA • Design of Experiments
7. Enumeration of Potential ‘X’
ANALYZE
Find the root causes
and identify the vital few.
And all for the want of a horseshoe nail.
IMPROVE
Focus on the vital few
to drive business
outcomes.
9. Define focus ‘X’ 10. Fix ‘X’
Decide which root causes to focus on, and how
CONTROL is the counterpart of MEASURE. Measure sizes the problem. CONTROL shows it has gone away or diminished as a result of IMPROVE.
BEFORE AFTER
