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7/31/2019 Accenture Process and Innovation Performance Solving Retail Problems Using Lean Six Sigma
1/12
Solving Retail ProblemsUsing Lean Six Sigma
7/31/2019 Accenture Process and Innovation Performance Solving Retail Problems Using Lean Six Sigma
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About Accenture Process &Innovation Performance
The Accenture Process & Innovation
Performance service line takes an
end-to-end, process-based approach
to address key business challenges
such as complexity reduction, lean
manufacturing and operations, process
innovation, strategic cost reduction
and growth through innovation, in
order to create competitive advantage
for clients globally. We help ourclients become high-performance
businesses by enhancing the internal
capabilities needed to continuously
improve operational and innovation
performance. Accenture enhanced its
longstanding operations and strategy
expertise with the 2007 acquisition
of George Group, a recognized
market leader in process, operational
and business transformation, and
innovation strategy, whose capabilities
and offerings form the foundation of
this new service line.
7/31/2019 Accenture Process and Innovation Performance Solving Retail Problems Using Lean Six Sigma
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The rise of Lean Six Sigma in
retail
Lean Six Sigma (LSS) is a continuous
improvement methodology that
combines two of the most powerful
improvement engines available
to business today. Lean providesmechanisms for quickly and
dramatically slashing lead times and
waste in any process, anywhere in an
organization. Six Sigma provides the
tools and organizational guidelines
that establish a foundation for
sustained, data-based improvement
in strategically important, customer-
critical targets. Today, Lean Six Sigma
has grown beyond these problem-
solving roots and now encompasses
high-level analytical tools anddeployment guidelines. These tools
and guidelines give executives the
means to establish and maintain
strategy-to-execution links in their
efforts to become high-performance
businesses.
Lean Six Sigma in retail
seriesThis series of three articles explores
how LSS deployments designed
specifically for retail can drive
operational excellence throughout a
company, from corporate offices to
individual stores, and help retailers
drive high performance. The series
provides retail-specific insights
gained in working with pioneering
retailers deploying LSS. The articles in
this series cover the following topics:
1. Applying Lean Six Sigma Principles
in Retail Stores: A discussion of the
specific challenges retail companiesface and case examples highlighting
what some retailers have done to
overcome these challenges in
applying LSS in stores.
2. Solving Retail Problems Using
Lean Six Sigma: A look into solving
simple to complex business problems
using LSS tools and approaches.
3. Leadership in Retail Lean Six Sigma
Deployments to Achieve High
Performance: An exploration into the
necessary leadership roles and
discussion of leadership support in
successful LSS deployments.
Summary of first articleIn the first article in this series,
Applying Lean Six Sigma Principles in
Retail Stores, we discussed how the
robust problem-solving methodology of
Lean Six Sigma (LSS) has been
effectively adapted to many industries,
including retail, despite Lean Six
Sigmas start in traditional
manufacturing and services industries.
Proven by companies across industries,
the flexibility of LSS and the DMAIC
(define-measure-analyze-improve-control) methodology helps companies,
including retailers, adjust to specific
industry needs quite well.
Based on Accentures experience, we
believe LSS and DMAIC have achieved
strong results in retail for a number of
reasons. The use of LSS and DMAIC:
Enablesretailerstobetterdefine
the problem. Retailers tend tolist numerous issues but lose the
focus on what measures are notperforming at the right level.Oftentimes, companies cannotexpress what output measures willbe different and/or quantify theimprovement in the output measure.LSS also helps get to the processbehind the problem.
Mapsandmeasurestheprocess.
Retail companies tend to missthe process aspects of everydaywork and therefore miss the non-
value-add aspects of the process.Mapping and measuring the processhighlights the non-value add (waste)in the process.
Identifiescriticalprocessfactors
that have the most influence onkey output measures. LSS forcesthe team to identify the criticalfactors in the process that drives theperformance of the output measureby using data analysis to replaceexperiential or reactionary methods.
Addressing these critical factors isthe best way to get step-changeperformance that is sustainable.
Helpsensurechangewillbe
sustainable through a control planby identifying: 1) The process; 2)The critical process factors thatshould be monitored; 3) Methodsto monitor them (for example, themore visual the better); 4) Standardstate for the critical factors (in
other words, how they shouldbe performing to get the desiredprocess performance); and 5) Theresponse plan when the criticalfactors in the process are notperforming to standard. Followingthese steps allows corrections to bemade early in the process, before
the output misses targets.
2
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Lean Six Sigma (LSS) has long been
applied in other industries to drive
operational excellence. More recently,
the retail industry is discovering ways
to tailor this continuous improvement
methodology to the industrys unique
challenges to solve problems, execute
methodical changes and make
process-change decisions. By
addressing the unique challenges of
the industry as well as of store
environments, LSS can drive high
performance in retail as it has in otherindustries. Increasingly, retailers are
applying LSS using a variety of tools to
address problems with a wide range of
scope, complexity and impact. From
Kaizens to accelerated improvements
to enterprisewide Black Belt projects,
the LSS toolkit is large and diverse.
This article discusses various
approaches retailers can take to
effectively solve problems on their
journeys to high performance.
Few retailers would dispute the unique
nature and challenges of retailing.
With Lean Six Sigma, different
approaches drawing on a large toolkit
can be applied to solve a diverse array
of problems. If an issue affects all
stores in the United States, for
example, a solution may entail
executing a project at the corporate
level, but perhaps require
implementing another approach using
DMAIC (define-measure-analyze-
improve-control) methodology to
address local or district concerns. In
general, the use of LSS allows a
concurrent top-down, middle-out andbottom-up approach to process
improvement, creating a synergy of
activities designed to satisfy
customers, stakeholders and associates.
Not only can LSS be applied to a wide
range of problems, it also is flexible.
The flexibility of LSS is demonstrated
in the various ways in which the
approaches can be used effectively in
solving problems. Factors such as
scope, available resources, time tocomplete, and complexity can all
impact the overall project approach.
Along with the ability to lead and
influence a team, application of the
appropriate approach differentiates the
best LSS project leaders from the
average. From the basic to complex,
choice of LSS approaches is as much
an art as it is a science.
LSS projects use a disciplined approach
not only through the DMAIC process,
but also with strong project and
change management applications to
increase the probability of long-term
success.Evenwiththemostcarefully
crafted approaches and the best
project management, the success of
LSS projects also hinges on the people
factor, specifically the ability of team
members to unite. True problem
solving becomes attainable the
moment team members understand
that even the most diverse areas of the
business have similar issues and ways
of thinking. Although people are
creatures of habit, there are reasons
they continue to perform in the sameway. LSS approaches help bring
entrenched issues to the forefront
Lean Six Sigma deployments designed specifically for the retail
industry hold the potential to drive high performance for
companies.
3
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4
LSS DMAIC Methodology
DMAIC (pronounced d-may-ick) is the incremental processimprovement methodology of Lean Six Sigma. It is an acronymthat stands for five interconnected phases: Define, Measure,Analyze, Improve and Control. Practitioners who use LSS followthe DMAIC process strictly to ensure the improvements are
data-driven instead of led by conventional wisdom. The fivephases of the methodology are:
DefineWhat exactly is the problem? Identify and/or validatethe improvement opportunity.
MeasureWhat data do we have? Identify and collect criticalmetrics/data to demonstrate and understand the problem.
AnalyzeWhat does the data tell us about how good (or bad)we and the primary drivers of the process are? Identify andvalidate that the true root causes are being addressed.
ImproveWhat does the data tell us are the best possiblesolutions both from an impact standpoint as well as cost/benefit? Identify, evaluate and select the right improvementsolutions.
ControlWhat dowe put in place to ensure the problem staysfixed? Establish process controls and metrics so we donthave to solve the problem again next year.
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where they can be resolved and
remove the we vs. they mentality.
Removing this mentality is required for
fundamental process improvement.
Both change management techniques
and data analysis are powerful sets of
tools that help build this necessary
alignment of team members. Duringany project, project leaders must
collect and use data appropriately to
remove the possibility of decisions
based on emotion or experiential
anecdotes. In one case, accepted
conventional wisdom drove different
goals for each distribution center
because the mix of product was
different between centers. Over time,
the centers met or slightly exceeded
the established goals. During a BlackBelt project, test runs and data
analysis proved that despite the variety
of products, all of the centers should
perform similarlyand, in fact, at a
higher rate than any of the centers
were currently expected to perform.
The vice president over the distribution
centers raised the goals to the new
rates and within six months every
distribution center consistently met
the new goals.
With the many challenges in the retail
environment, use of basic project
management approaches to gain
buy-in and consensus are also critical
to project success in all projects,
whether simple or complex. When the
problem scope is straightforward and
the risk of implementation is low,
some basic approaches tend to be used
successfully and quickly. Nevertheless,
a question that often arises is: why
does a simple project using a basic
approach take three months to
complete? The answer is: it does not,
and probably should not, have to take
three months with the appropriate LSS
approach. The project duration is
usually driven by the scope,
complexity, project leaders experience
and leadership, the strength of the LSS
knowledge and the leadership support
on the project.
LSS approaches to simple
problems
Depending on scope, implementation
risk and degree of complexity, some
projects can be completed using an
accelerated improvement approach.
Accelerated improvement is often used
within projects to drive faster
completion of a particular phase or
component (an example: value stream
mapping). However, used properly,
accelerated improvement can be used
effectively to execute projects. The
technique is straightforward, but
requires strong facilitation skills and
DMAIC knowledge, intense preparation
and follow-up management.
Characteristics of an accelerated
improvement approach:
Acoreteamofsixtoeightcross-
functional representatives preparesthe logistics, designs the agendaand determines the participantsand pathway for the event. Anaccelerated improvementI event canwork effectively with as many as 35participants.
Thepathwayconsistsofaseries
of questions designed to drive the
group to quick understanding ofthe problem, leading to solutiongeneration.
Questionsareansweredbysmall
breakout groups, and each groupreports back its best answers tothe overall team. The overall teamthen discusses each answer anddetermines the best next steps.
Typically,solutionsarenot
implemented during an accelerated
improvement event; therefore,developing detailed follow-up actionitems with due dates and identifyingownership is imperative to success.
Theeventisconsideredcomplete
upon full implementation of thefollow-up list and sign-off of thecontrol plan.
The accelerated improvement approach
is very effective when used
appropriately, but it is not always
adequate. More complex projectsrequire statistical analysis in addition
to the basic tools to identify and solve
the root cause or causes of problems.
As project complexity and scope
increases, the accelerated improvement
approach no longer becomes
functional or effective. When project
scope exceeds the accelerated
improvement approach, but is still
fairly narrow, a Kaizen is often the
answer. Kaizen is often calledaccelerated DMAIC or DMAIC in a
week. To be more precise, the event
lasts for a week, but is preceded by one
to two preparation weeks and followed
by a 20-day follow-up period. The
primary differences between
accelerated improvement and Kaizen
are scope, team size (accelerated
improvement can have up to 35
members compared to six to eight in a
Kaizen) and speed of implementation
(accelerated improvement develops a
future plan while a Kaizen takes
immediate action).
Characteristics of a Kaizen process:
Kaizeneventsconsistofthreesteps:
planning, the event and follow-up.
Theone-totwo-weekplanning
phase requires a Kaizen leader notonly to select the team and planthe necessary logistics, but to also
complete the define phase andcollect initial data for the event.
TheKaizeneventitself,whichis
typically five days in duration,completes the measure, analyzeand improve phases of the DMAICmethodology. During the event,additional data is collected andanalyzed, potential solutions arebrainstormed and prioritized, andimplementation of the best solutionsis begun.
AsinallLSSwork,acontrolplan is required. The plan is developedin the event along with a follow-upaction plan for the solutions thatwere not completed during theweek, and appropriate sign-offis obtained.
5
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6
Accelerated improvement: Weekly insert process
A large US retailer determined the advertising portion of theweekly insert took 14 work days to create. The defect rate withits current process exceeded 90 percent resulting in extensiverework. Although the retailer never missed an insert, theprocess to meet printer deadlines was costly.
After determining that more than 30 hand-offs were involvedin the process of creating the insert, the Accenture teamdetermined that the accelerated improvement approach wasthe most appropriate to help resolve the issues. Three majorplanning activities were necessary: determining the necessaryteam members, socializing the process and creating the agendafor the event itself. During the 12-hour session, 40 cross-functional team members determined the as-is value streammap, the root causes of the process delays, the future state, andthe steps and ownership needed to implement the improvement
changes.The team implemented multiple solutions with the mostimportant being a distinct timeline for each step in creatingthe insert, based on hard deadlines. The solutions were pilotedin one class of product, and then implemented throughout theorganization over the next few months. Once completed, thecycle time from the first touch by advertising was reduced tofour days, and the defect rate decreased to less than 5 percent.
Kaizen: In-store cost reductionA new store upgrade for high-scale products was implementedin a faster-than-normal pace in order to be first to market. Afterthe project was complete, the team reviewed the new processand determined cost overruns of more than $500,000 per storewere controllable.
After determining the appropriate cross-functional team,the Kaizen team reviewed the construction process and eachcomponent of the new store design using LSS tools and theKaizen focus on action. The construction process was reduced
by two weeks by reducing process inefficiencies and timelinesand improving communication between functions. Using voice-of-customer data from existing store upgrades, the team wasalso able to identify and eliminate wasteful pieces of the designthat were not valued by customers. An example of this wastereduction was the elimination of wood paneling in the storagearea (the initial plan created matching wood paneling for allareas of the display).
Over the course of the week, the team discovered more than 30unnecessary components of the original design. They created a
new construction process and timeline resulting in more than$5 million in annual savings and increased margin from earlierstore upgrade openings. Through this project, Accenture helpeddemonstrate how LSS can help drive high performance.
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LSS approaches to complex
problems
A combination of accelerated
improvement and Kaizen often prove
to be quite effective in solving a
number of problems. So why not use
them to solve every problem? Theanswer is that these methods should
be used when practical, particularly in
stores because of the relative short
time requirements for team members.
However, not every problem fits the
faster methods of accelerated
improvement and Kaizen and instead
requires Green Belt- or Black Belt-level
analysis to solve.
When the scope, complexity and/or
difficulty of obtaining buy-in from keystakeholders increases, accelerated
improvement and Kaizen methods are
not as effective. In most LSS
deployments, the primary vehicle for
problem solving is Green Belt and
Black Belt project approaches. Projects
at these levels use DMAIC in a
methodical, analytical approach to
determine the best possible solution or
solutions. Where accelerated
improvement and Kaizen use some
data to help drive solutions, thenecessary discipline is less than typical
Green Belt or Black Belt projects. The
quick improvements identified in
Kaizens are intended for action and
typically based on directional data or
tribal knowledge, targeting 80
percent confidence. Green Belt and
Black Belt projects require more
detailed analysis and target decisions
with a much more stringent confidence
level of 95 percent.Green Belt and Black Belt projects are
the necessary approach for more
complex and higher risk problems. The
project timelines vary tremendously
due to scope, experience level,
leadership support, data availability
and other reasons, but a typical
expectation is three to six months for
Black Belt projects and two to four
months for Green Belt projects.
The primary differences between GreenBelt and Black Belt project leaders are
the level of training, depth of
knowledge and scope of projects. Black
Belts are most effective when the role
is a full-time process improvement
position in the organization. They
receive four or five weeks of deep
DMAIC theory and application training,
and can lead large, complex, cross-
functional projects with coaching from
more experienced, certified MasterBlack Belts. The Green Belt typically
gets two weeks of training that
provides enough knowledge to
complete focused, single functional
projects with coaching support from
either a Master Black Belt or a Black
Belt.
Retail executives often ask how Green
Belt/Black Belt projects in stores can
be completed when they require
resources for three to eight months tofinish. Gaining traction in stores is
difficult with the traditional approach
to LSS projects due to not only tight
labor constraints, which does not allow
associates time away to work on
long-term improvement efforts, but
also turnover at the store level that
makes a sustainable team difficult to
design. One solution is the project
accelerator (PA), a new model for
DMAIC projects. Project accelerator is
an intensive one-to-two-day event
designed to complete an entire phase
of DMAIC or to complete a complex
task (such as value stream mapping). A
complex LSS project in the store can
be completed in the original or possibly
shorter timeline by a combination of
project accelerator and research/
planning.
Characteristics of the project
accelerator method:
Projectleader,eitherGreenBelt
or Black Belt, plans the event andcreates the agenda.
Thescopeoftheeventisdetermined
based on DMAIC phase, need andteam dynamic after discussion withthe project sponsor.
Duringtheevent,decisionsare
made and a follow-up plan isimplemented.
Theprojectleaderisresponsibleforcompleting the follow-up plan priorto the next event or phase.
ADMAICprojectcouldbecompleted
by a series of project acceleratorevents depending on the scope ofthe project.
As an example of how the project
accelerator method can be used, a
define/measure project accelerator was
conducted in a retailers copy printcenter where some team members
were located in the corporate office
and others were scattered among
multiple stores. In the project
accelerator event, the following were
completed: the team launch, voice of
the customer, communication plan,
value stream mapping (VSM),
perational definitions and data
collection plan.
Also, the project charter, SIPOCdiagram and project timeline were
nearly complete in the project
accelerator (see also sidebar on LSS
Tools Primer). At the end of the
project accelerator, the project leader
was nearly ready for the define and
measure tollgates. Tollgates are formal
reviews between the DMAIC team and
the project sponsor and champion.
Held at the end of each phase,
tollgates have three major functions:1) presentation of the methodology
and learnings from the just-completed
phase; 2) a go/no-go decision from the
sponsor and champion to pass the
tollgate and continue the project to
the next phase; and 3) a full discussion
on next steps in the project.
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Green Belt and Black Belt projects
Reduction of misdelivery errorsA large US retailer incorrectly loaded
more than 20,000 boxes of customer
orders per year, placing boxes onthe wrong delivery trucks. These
errors resulted in increased labor
and transportation costs to redeliver
boxes to customers as well as reduced
customer satisfaction. The retailers
project team addressed this problem,
beginning with a single distribution
center in their network. Using basic
LSS tools such as value stream maps
and value-add analysis to analyze
the issue, the team determined that
repetitive route changes, lack of visualtools and an inefficient label-delivery
process were driving these delivery
errors. The project team identified
and implemented several solutions
including making permanent route
moves, installing large white boards
with planning data and relocating
the label printing. These relatively
simple and low-risk solutions resulted
in $30,000 of cost savings for the
distribution center with the potentialfor $200,000 of benefits upon
replication across the other centers and
a 65 percent reduction in errors.
Improved freight consolidationBy missing opportunities to consolidate
freight transported from their suppliers
to several distribution centers, a large
global retailer incurred higher-than-
necessary freight expenses. A freight
optimization process was executed
twice each business day; however, the
consolidation of additional supplier
shipments was estimated to potentially
reduce annual inbound freight costs
by more than $750,000. The project
team used histograms and process
complexity identification tools to
uncover three main root causes
that resulted in inefficient freight
optimization: 1) suppliers were required
to request routing instructions atleast 48 hours in advance of their ship
date; 2) suppliers were given instant
routing responses unnecessarily; and 3)
current allocation of resources did not
provide freight optimization process
support. These causes reduced the time
available and shipment visibility for the
retailer to analyze opportunities and
consolidate freight.
Enlistingtheexpertiseofcross-
functional associates, the team
generated a large list of solutions and
identified two primary solutions for
implementation that were chosen using
a cause-and-effect diagram (also know
as a fishbone diagram). By removing
suppliers ability for instant routing
and reallocating internal resources to
freight optimization, the team was able
to eliminate four critical controllable
defects and generate $752,000 in
annualized savings.
Reduction of damage inventoryThe damaged inventory levels in a
leading global retailers US stores
averaged around $11.5 million, tying
up costly working capital and slowing
down replenishment of necessaryproduct inventory in stores. In the
early analysis of the data, the Black
Belt discovered that 30 percent of
the return reason codes entered were
incorrect. This discovery highlighted
a problem much greater than initially
expected: the actual damaged
inventory was 23 percent higher than
the recorded financial reports, the
cycle time to process and clear some
damaged inventory exceeded a year,and significant complexity was added
to the store inventory positions.
Analyzing the drivers of inventory using
deep LSS tools such as Lean value
stream mapping, process balancing
and advanced ANOVA statistical
analysis, the team uncovered several
critical root causes: 1) multiple process
failure points were uncovered before
the damaged product inventory was
placed in the cage; 2) cashiers werenot trained on returns and exchanges;
and 3) an audit process did not exist
for damaged product reports. The team
then analyzed and tested data that
actually proved conclusions directly
opposite of supposed widely accepted
truths.
The Black Belt leveraged a cross-
functional team of corporate and store
inventory associates to redistribute
workload and accountability between
the store inventory and service desk
associates to increase inventory
accuracy. Also, the complexity of the
damaged inventory processing was
reduced by balancing process loads
balancing, allowing the inventory
associates to control damage-on-
hand inventory and process damaged
inventory a minimum of three times
per week. This change enabled the
inventory process to be executed more
often and reduced the cycle time of
processing damaged inventory. As a
result, the running average of damaged
inventory was reduced by 26 percent
or $3.5 million, resulting in capital
improvement of $409,000 and a turn
improvement of 2.25bp. Additionally,
the cycle time of items in the damagedinventory was reduced by 37 percent to
less than 10 days.
8
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applies. Determining which option or
set of options to use is the art of the
process.Eachcompanysproject
selection process should include a
determination of the best methodology
and approach to successful completion.
LSS and its ability to match the needs
of the business is a strong solution foroperational transformation and
cultural change.
Third article in series
In the final article in this series of
achieving high performance through
Lean Six Sigma in retail, we discuss the
importance of leadership and explore
the necessary key leadership roles in
successful LSS deployments.
To learn more, please go towww.accenture.com/
processandinnovationperformance.
Progressing to high
performance through
operational transformation
Understanding the variety of
approaches for different business
issues and how they can be applied
increases the effectiveness of theproject solutions and program growth,
ultimately contributing to achieving
high performance. LSS can be and is
successful in the retail industry
because its robust and flexible nature
fits into the fast-paced, variable
competitive environment and
organizational cultures. Moreover, in
retail, flexibility and diversity are
requirements for any sustainable
cultural change agent.
Whether a project is a complex,
cross-functional enterprisewide effort
or a local improvement
implementation, the LSS toolkit
9
Criteria
Approach Description Complexity Scope
Implementation
Risk Typical Timeframe
Project
Accelerator
(PA)
short, intensive event
designed to complete an
entire phase of DMAIC or to
complete a complex task
Extremelylow Small Low 1-2 days
Accelerated
Improvement
(AI)
Short burst of activity
concerning a specific issue
to determine an agreed upon
set of actions
Low Small Low 1-2 days with
variable follow-up
Kaizen Intense event utilizingDMAIC methodology in
which root causes and
solutions of smaller scoped
issues are determined, and
solutions are implemented
immediately
Low to moderate Small tomedium
Low to moderate 4-5 days with 15-30days follow-up
Green Belt
(GB)
Focused projects within a
functional area utilizing
DMAIC methodology to
solve smaller problems
Low to moderate Medium Moderate 2-4 months
Black Belt(BB)
Project utilizing DMAICmethodology to solve root
causes to major issues and
establish permanent controls
High Large Moderate to high 3-6 months
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10
Lean Six Sigma Tools Primer
Basic tools
Affinity Diagram: An approach for
organizing facts, opinions and issues
into natural groups as an aid to
diagnosing a complex problem.
Cause-and-Effect Diagram (also
known as a Fishbone or Ishikawa
Diagram) and 5 Whys: Strong
brainstorming approach to determine
the relationship between a problem
symptom and its main causes and sub-
causes.
Force-field Analysis: An approach to
assist in examining the factors that
will aid (called driving forces) or hinder(called restraining forces) in reaching
an objective. Also, aids in helping
understand the forces that keep things
the way they are.
Histogram: A basic graph that displays
relative frequency or occurrence
of data values and enables easier
observation of patterns in a set of
data as compared to a simple table of
numbers.
Nominal Group Technique (NGT): Astructured approach that supplements
brainstorming, used to generate
additional ideas, survey the opinions
of a small group and prioritize
brainstormed ideas, issues or solutions.
Pareto Chart: A type of bar chart that
helps quantify and prioritize problems
so effort is focused on the vital few
causes as opposed to the trivial many.
The Pareto principle suggests that 80
percent of the effect of the problem isattributed to 20 percent of the causes.
Process Map:Visual representation of
the steps of work path used to produce
a product or perform a function to
better understand processes, comprises
a stream of activities that transforms
defined inputs into a set of outputs.
SIPOC (which stands for suppliers,
inputs, process, output and
customers): A high-level process
chart that primarily helps identify the
process output(s) and the customers of
the output.
Stakeholder Analysis: A visual tool
used to help identify key stakeholders
level of support in order to develop an
action plan and enlist support for a
project or change.Value Stream Mapping (VSM):
Process mapping technique that helps
identify and understand the flow of
material and information as a product
or service makes its way through the
process work path.
More advanced tools
ANOVA: Statistical models to estimate
the variance components associated
with total amount of observed
variation, assists in identifying the
critical causes of a problem.
Boxplot (also called box-and-whisker
diagrams): A graph used to visualize
both the median and the range of a
process and allow for easy graphical
comparison of multiple sets of data.
Control Chart: A graphical approach
for monitoring changes within a
process, distinguishes variation that
is inherent in the process (commoncause) from variation that indicates a
change to the process (special cause).
Design of Experiment (DOE): A
structured, organized method for
planning, conducting and interpreting
controlled tests to determine the
relationship between factors affecting
the outputs of a process.
Process Capability: A statistical
measure of the inherent process
variability for a given characteristic
and refers to the ability of a process
to produce a defect-free product or
service.
Regression Analysis: A statistical
method to describe and quantify the
relationship between two or more
variables.
Trend Analysis: An approach to chart
and analyze data to identify underlying
long-term trends (e.g., failure patterns).
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Copyright 2008 Accenture
All rights reserved.
Accenture, its logo, and
High Performance Delivered
are trademarks of Accenture.
About AccentureAccenture is a global management
consulting, technology services
and outsourcing company.
Combining unparalleled experience,
comprehensive capabilities across all
industries and business functions,
and extensive research on the worldsmost successful companies, Accenture
collaborates with clients to help them
become high-performance businesses
and governments. With more than
186,000 people in 49 countries, the
company generated net revenues of
US$23.39 billion for the fiscal year
ended Aug. 31, 2008. Its home page
is www.accenture.com.
Contact us
To learn more, see our thought
leadership on www.accenture.com/
processandinnovationperformance
or call one of our senior directors:
Tony Curtis
+1 804 683 8914 or
Jin An
+1 804 387 8555 or
Robert Gettys
+1 404 312 1762 or