RLM & Associates LLC Your Lean Six Sigma & Project Management Trainers

1. RLM & Associates LLCYour Lean Six Sigma & Project Management Trainers Lean Six Sigma DMAIC Workshop Green Belt Part 2 6 σ Green Belt Kraft Foods Green Belt

2. Six Sigma Pizza Inc. Start Boundary: Customer places order Stop Boundary: Customer receives order Suppliers Inputs Process Outputs Customers Kraft Foods Green Belt

3. Customer Identification • Objective is to determine who is directly impacted by the problem • Looking for ROI in improvement efforts • Identify most impacted” customers • Correcting the problem for this group generates the largest benefit, and can be applied to the other customer groups Kraft Foods Green Belt

4. Who Are My Customers? • A customer is the recipient of a product or service: • May be internal or external • – External customer • – pay for the product or service • – Internal customer • – utilize the same output to complete their own processes, ultimately supplying the output to the external customer Kraft Foods Green Belt

5. Customer Identification Exercise Internal External Customers Customers Kraft Foods Green Belt

6. Critical Customer Requirements • Objective is to determine the qualities the customer views as important. • – How does the customer define quality? • What specific characteristics matter most? • Is there a difference among customer segments? • – Which segment is the target segment? • Must be measureable! • Requires that we gather feedback from our customers Kraft Foods Green Belt

7. Six Sigma Pizza Inc. Product Quality Service Quality Price Reliability Convenience Low original price Durability Reliability Value Useability/Features Speed Total costs Prestige Interraction Serviceability Tangibles Failure Recovery Failure Recovery Kraft Foods Green Belt

8. Voice of the Customer • Collects information from the customer directly through various sources • – Internal intelligence • – Outbound communications • – Inbound communications • – Casual contact • – Formal transactions • – Research Kraft Foods Green Belt

9. Voice of the Customer • Typical Methods • Interviews • Focus Groups • Surveys • Customer Complaint Data Kraft Foods Green Belt

10. Critical Customer Requirements CCR’s Critical Customer Requirements Voice of the Customer Key Customer Issues • Actual customer comments which reflect their perception of: • An attribute of a product or • Service • An experience with a • product/service or delivery • An encounter or • experience with a business • processes or representative • “This mower is way too hard to start” • “I’m always on hold or end up talking to the wrong person” • “This package doesn’t do squat” The real customer concerns, values or expectations regarding a product or service. Void of emotion or bias, the statement describes the primary issue a customer may have with the product or services. Describes the experience surrounding the attributes of the product or service expected or desired by the customer. Wants the mower to start quickly and painlessly Wants to talk to the right person quickly The software does what the vendor said it would do The specific and measurable expectation which a customer has regarding a product or service. Mower starts within two pulls on the cord Mower starts with an effortless pull on the cord not exceeding 24” in length Customer reaches correct person the first time within 30 seconds (good) The software is fully operational on the customer's existing system Kraft Foods Green Belt

11. VOC to CCR Kraft Foods Green Belt

12. Six Sigma Pizza Inc. • Multiple CCR‘s will require prioritization • – ROI is key • 1. “Must Be‘s” • – Unless fully functional, customer will be dissatisfied • 2. Performance Improvement • –Improves competitiveness • 3. Delighters • –The “human touch” extras Kraft Foods Green Belt

13. Air Travel Example Kraft Foods Green Belt

14. Six Sigma Pizza Exercise Kraft Foods Green Belt

15. Six Sigma Pizza VOC • Customer Complaints • Delivery took too long to arrive • Pizza cold when delivered • Pizza was stuck to the top of the box • Adding 20% tip to my group of 16 was not justified • Jeff Gordon crashed in turn 3 and my pizza was stuck to the top of the package • My pizza was cold when I got it home Kraft Foods Green Belt

16. Six Sigma Pizza Inc. Customer Loyalty Score over the last 12 months – Dine In Customers 52% – Carry Out Customers 48% – Delivery Customers 22% Kraft Foods Green Belt

17. Team Exercise • Assign teams: • Complete the SIPOC Exercise for Six Sigma Pizza Inc. • Complete VOC to CCR template • Complete Prioritization Matrix • Be prepared to present Kraft Foods Green Belt

18. Six Sigma Pizza Inc. Kraft Foods Green Belt

19. Six Sigma Pizza Inc. Kraft Foods Green Belt

20. Six Sigma Pizza Inc. Kraft Foods Green Belt

21. Six Sigma Pizza Inc. Start Boundary: Customer places order Stop Boundary: Customer receives order Suppliers Inputs Process Outputs Customers Kraft Foods Green Belt

22. Document and Analyze Processes Kraft Foods Green Belt

23. Functional Deployment Process • Like the top-down process map, a functional deployment process map displays the steps depicted in a process in sequential order. The functional deployment process map also illustrates where each step is performed and who is involved. • – Features • Symbols, such as those shown below, are used to illustrate the process flow, decision points, and activities performed. • Functional deployment process maps generally take considerable time to prepare, but they are extremely useful in understanding a process prior to attempting improvements. They require input from people familiar with each area of the process. Kraft Foods Green Belt

24. Functional Deployment Mapping Kraft Foods Green Belt

25. Six Sigma Pizza Inc. Kraft Foods Green Belt

26. Six Sigma Pizza Exercise • Turn top-down flow chart in to Functional Deployment Map • Hand drawn or Visio is acceptable • Present to group • Remember…. AS IS Process! Kraft Foods Green Belt

27. Quick Win Opportunities Some processes have been neglected for so long that a simple mapping exercise may illuminate many easy and obvious improvement opportunities. Conducting a common sense assessment of the value of each step may help to identify these opportunities, referred to as ―quick wins, “or ―low hanging fruit.” Teams should always be prepared to identify and pursue quick win opportunities —the return on investment can be very high. Kraft Foods Green Belt

28. Quick Win Opportunities Criteria for Defining an Opportunity as a Quick Win Easy to Implement: Making the change or improvement does not require a great deal of coordination and planning. Fast to Implement: Making the change or improvement does not require a great deal of time. Cheap to Implement: The change or improvement does not require a large investment of capital, of human resource or of equipment or technology. Within the Team‘s Control: The team and its management are able to gain the support of the people needed to make the change. The scope of the change is within the team‘s ability to influence. Kraft Foods Green Belt

29. Qualitative Analysis • Introduction to Improvement Criteria • Prior to detailed measurement and analysis of a process, a team can often identify quick and simple opportunities for significant improvement. Sometimes these ―quick wins‖ are sufficient for accomplishing the team‘s improvement goals. • Customer Value-Added • An activity can be described as adding value for the customer only if: • The customer recognizes the value • It changes the product toward something the customer expects • It is done right the first time Kraft Foods Green Belt

30. Qualitative Analysis • Operational Value-Added • An activity adds operational value if it is not a customer value-added activity and is: • Required to sustain the workplace ability to perform customer value-added activities • Required by contract or other laws and regulation • Required for health, safety, environmental or personnel development reasons • Done right the first time Kraft Foods Green Belt

31. Value Added Analysis • Examples: Non-Value-Added Activities • – Counting the amount of work • – Inspection and checking • – Sorting work • – Logging information • – Checking calculations • – Reviewing and approving • – Moving and set-up • – Monitoring work • – Stamping • – Any type of rework Kraft Foods Green Belt

32. Value Added Observations • Let’s get back into your teams • Based on everything you know so far…. • – Quick Wins? • – Value Add Concerns? Kraft Foods Green Belt

33. Stakeholder Management Stakeholder Management Kraft Foods Green Belt

34. Stakeholder Management Committed Leadership is critical for success! Questions to ask: Who is the sponsor and stakeholders? What is his/her current level of dissatisfaction with the current state? What data has been surfaced to create this need or discomfort? Kraft Foods Green Belt

35. Stakeholder Management • Create and strengthen relationships which can be leveraged to manage the change efforts • Manage expectations • Establish two-way communications channel • Develop a process to detect fearful or negative reactions which could hinder the change effort • Manage resistance to change Kraft Foods Green Belt

36. Who is a Stakeholder? • Stakeholders are individuals and groups of people who have the ability to influence or are impacted by the direction and success of the project • –Customers, owners, suppliers and other business partners, manufacturers, team members, regulators, people within the process, investment community • Different stakeholders can perceive the same changes in dramatically different ways • Assessment of stakeholders and stakeholder issues are necessary to identify: • –The range of interests • –Issues to be taken into consideration in planning change and • –To develop the vision and change process in a way that generates the greatest support Kraft Foods Green Belt

37. Stakeholder Management Risks of Inadequate Stakeholder Management: • Unrealistic expectations • Stakeholders concerned over personal impact • Rumor mill becomes the main source of information • Resistance to the change effort • Fear and confusion Kraft Foods Green Belt

38. Types of Resistance in Stakeholders • Technical Resistance: stakeholders believe 6 Sigma produces feelings of inadequacy or stupidity on statistical and process knowledge • Political Resistance: stakeholders see 6 Sigma as a loss of power and control • Organizational Resistance: stakeholders experience issues of pride, ego and loss of ownership of change initiatives • Individual Resistance: stakeholders experience fear and emotional paralysis as a result of high stress Kraft Foods Green Belt

39. Supportive Stakeholder Challenging Stakeholder • Listens • Positive toward the project • Demonstrates awareness of project goals, approach, timeline and team members • Enthusiastic; desire to be • involved • Willingness to offer resources, facilities & personal time • Proactive to see what personal impact the project will have • Voluntarily contributes ideas • Apathetic • Interrupts, not really interested complacent, why change? • Project perceived as low priority • Not cooperative or forthcoming • Plainly critical…a vocal opponent • Wants nothing to do with project • Behaves as a barrier to project implementation requirements • Reluctance to talk/discuss Kraft Foods Green Belt

40. Strategies to Overcome Resistance • Technical Resistance: focus on high-level concepts to build competencies. Then add more statistical theorems as knowledge base broadens • Political Resistance: address issues of perceived loss straight on. Look for champions to build consensus for 6 Sigma and change • Organizational Resistance: look for ways to allow the resistor greater control over the 6 Sigma initiatives • Individual Resistance: decrease the fear by increased involvement, information and education Kraft Foods Green Belt

41. Communication is the Key • Keep stakeholders aware • and involved • in your project… • Gate Reviews • Update Meetings • Gallery Walk Kraft Foods Green Belt

42. Project Stakeholder Management Plan: Project Name: __________________ Kraft Foods Green Belt

43. Communication Strategy • Communication strategy defines the message to be delivered and the method of delivery • What is the message to be delivered? • Who is the target audience? • Is it tailored to the audience? • Who will deliver the communications? • When should the communications be delivered? • How will the communications be delivered? • How frequently should communications occur? • How will feedback be obtained and used to address resistance? Kraft Foods Green Belt

44. Communication for Successful Change • Honest and simple • Communicate early and communicate often • Communicate with all of your change ―targets‖ –be consistent • from one audience to the next but tailor your message to be • relevant • Be open to concerns and questions from all levels and areas of the business affected; invite dialogue • Build communications to address concerns voiced • A clear demonstration of the leadership‘s commitment to the • change and the success of the business • A clear description of the compelling need to change Kraft Foods Green Belt

45. Project Communication Plan: Project Name: __________________ Kraft Foods Green Belt

46. Stakeholder Management Change Management Kraft Foods Green Belt

47. Organizational Change Management? • Organizational Change Management is the process of managing change with a focus on people, culture, structure and process • The goal of Organizational Change Management is to “manage” the change by demonstrating the value of the change and addressing any resistance • Organizational Change Management does not eliminate “resistance” to change, it simply manages it Kraft Foods Green Belt

48. Why is Change Management Important to the Success of 6 Sigma Projects? • Understanding and managing change is vitally important. Managing the human element will be one of the most challenging and dynamic components of your team experience. • 6 Sigma methodology and tools are fact based and data driven. The project team also needs tools to manage one of the most important tasks of all…getting people to champion your project and accept your solutions! Kraft Foods Green Belt

49. A Basic Change Model • Change can cause a mixture of thoughts and emotions • – Excitement • – Yearning for the past • – Unfocused energy • – Productivity dip—remember, the “dip” is going to happen, however the objective is to lessen the dip, not remove all the pain Kraft Foods Green Belt

50. Transition State • The transition state is defined by the implementation plan developed in Improve. This is the process in which people and organizations move from the “as is” to the “to be”. • Consider this: Today I work at Chuckie‘s, tomorrow I‘m doing brain surgery… • –What needs to be done to get there? What skill sets, training, procedures are required to facilitate the change? Kraft Foods Green Belt