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LSSG Green Belt Training

LSSG Green Belt Training. Control: How do we make it happen at a controlled speed?. Control. Improve. Analyze. Define. Measure. DMAIC Six Sigma - Control. Implement Controls

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LSSG Green Belt Training

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

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

  3. Agenda for Control • Standardization • Financial Benefit • Change Management • Process Monitoring • Process Capability • Response Plan • Closure

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

  5. Benefits of Standard Work • Allows for Monitoring and Control • Reduces Process Variation • Provides Input for ISO9000 Certification • Document what you do, and then do what you have documented! • Helps Maintain the Gains from Improvement Projects SOP Link: osg.ivdgl.org/.../ Operations/CriticalUpdateSOP

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

  7. 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?

  8. 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?

  9. 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?

  10. Change Management CURRENTSTATE 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

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

  12. Choosing the Right Control Chart Data Type Attribute Count Continuous P-Chart (% Defectives) U-Chart (# of Defects/Unit, or DPU) I-MR (or X-MR) Chart (n = 1) X Bar-R Chart (n = 2 to 5) 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.

  13. Arrange Travel

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

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

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