Lean Six Sigma Improve Phase Tollgate Review

1. Improve Phase • Lean Six Sigma Improve Phase Tollgate Review

2. Lean Six Sigma DMAIC Tools and Activities • Review Project Charter • Validate High-Level Value Stream Map and Scope • Validate Voice of the Customer & Voice of the Business • Validate Problem Statement and Goals • Validate Financial Benefits • Create Communication Plan • Select and Launch Team • Develop Project Schedule • Complete Define Tollgate • Value Stream Map Flow • Identify Key Input, Process and Output Metrics • Develop Operational Definitions • Develop Data Collection Plan • Validate Measurement System • Collect Baseline Data • Determine Process Capability • Complete Measure Tollgate • Identify Root Causes • Reduce List of Potential Root Causes • Confirm Root Cause to Output Relationship • Estimate Impact of Root Causes on Key Outputs • Prioritize Root Causes • Value-Add Analysis • Takt Rate Analysis • Quick Wins • Statistical Analysis • Complete Analyze Tollgate • Develop Potential Solutions • Evaluate, Select, and Optimize Best Solutions • Develop ‘To-Be’ Value Stream Map(s) • Develop and Implement Pilot Solution • Implement 5s Program • Develop Full Scale Implementation Plan • Cost/Benefit Analysis • Benchmarking • Complete Improve Tollgate • Develop SOP’s, Training Plan & Process Controls • Implement Solution and Ongoing Process Measurements • Confirm Attainment of Project Goals • Identify Project Replication Opportunities • Training • Complete Control Tollgate • Transition Project to Process Owner Improve Control Define Analyze Measure • Mistake-Proofing/Zero Defects • Standard Operating Procedures (SOP’s) • Process Control Plans • Visual Process Control Tools • MGPP • Statistical Process Controls (SPC) • Solution Replication • Visual Workplace • Metrics • Project Transition Model • Team Feedback Session • Replenishment Pull/Kanban • Stocking Strategy • Process Flow Improvement • Process Balancing • Analytical Batch Sizing • Total Productive Maintenance • Design of Experiments (DOE) • Solution Selection Matrix • Piloting and Simulation • Work Control System • Setup reduction • Pugh Matrix • Pull System • Value Stream Mapping • Process Cycle Efficiency/Little’s Law • Operational Definitions • Data Collection Plan • Statistical Sampling • Measurement System Analysis (MSA) • Gage R&R • Kappa Studies • Control Charts • Spaghetti Diagrams • Histograms • Normality Test • Process Capability Analysis • Process Constraint ID and Takt Time Analysis • Cause & Effect Analysis • FMEA • Hypothesis Tests/Conf. Intervals • Simple & Multiple Regression • ANOVA • Components of Variation • Conquering Product and Process Complexity • Queuing Theory • Project Charter • Voice of the Customer and Kano Analysis • SIPOC Map • Project Valuation/ROIC Analysis Tools • RACI and Quad Charts • Stakeholder Analysis • Communication Plan • Effective Meeting Tools • Inquiry and Advocacy Skills • Time Lines, Milestones, and Gantt Charting • Pareto Analysis Kaizen Events Targeted in Measure to Accelerate Results International Standards for Lean Six Sigma

3. Analyze Overview Hypothesis Tests Value-Add Analysis Tools Used Root Cause / Effect • C&E Matrix • Complexity • Cause & Effect Diagram • Kaizen/Quick Wins • FMEA • Control/Impact Chart • T-Test • Other • Root cause: • Effect • Root cause: • Effect • Root cause: • Effect • Value Add Analysis • One-Way ANOVA • Two-Way ANOVA • Pareto Plots • Simple Linear Regression • Multiple Regression • Test for Equal Variance • Scatter Plots Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

4. To-Be Process Map Notify HR of employee exit date Client Mgr Avg. Cycle time = 0 days Places information into HR EXIT database Client HR Utilize web tool to submit a delete request to vendor Avg. Cycle time = 1 day Client Contact Access database daily Create Work Request Avg. Cycle time = 1 day NT Admin Delete account Avg. Cycle time = 1 day Email Vendor Admin closes work request and manager notified Avg. Cycle time = 1 day Admin Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

5. Quick Win Documentation Template • Root Cause: _________________________________________________ • Obvious Solution: __________________________________________ • Low or No Cost: __________________________________________ • Low Risk: ________________________________________________ • Implementation Plan: ______________________________________________ • Stakeholder (s) Approval: ___________________________________________ Process Name: __________________ Process Lead: ___________________ Process Owner: ______________________ Start Date: ______________ Process Area: ________________________ Stop Date: ______________ • 5s • 4-Step Setup Reduction • Inventory Reduction • MSA Improvements • Price reductions • Reduced DOWNTIME (NVA steps or work) • Pull System • Kaizen events • Other Benefits: • __________________________________________________________ • __________________________________________________________ • __________________________________________________________ Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

6. FMEA • Risk Analysis recommended actions (Key Speaking Points) • Rating Index • Total Current RPN Risk Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

7. Value Stream Map (VSM)Future State Customer Supplier Information Flow Sources of Value • ? • ? • ? • ? • ? <Step1> <Step3> <Step3> 1 1 2 Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

8. Business Impact • State financial impact of future project leverage opportunities • Separate “hard or Type 1” from “soft Type 2 or 3” dollars Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

9. Business Impact Details • Type 1: Describe the chain of causality that shows how you determined the Type 1 savings. (tell the story with cause–effect relationships, on how the proposed change should create the desired financial result (savings) in your project ) • Show thefinancial calculation savings and assumptions used. • Assumption #1 (i.e. source of data, clear Operational Definitions?) • Assumption #2 (i.e. hourly rate + incremental benefit cost + travel) • Type 2: Describe the chain of causality that shows how you determined the Type 2 savings. (tell the story with cause–effect relationships, on how the proposed change should create the desired financial result (savings) in your project ) • Showthe financial calculation savings and assumptions used. • Assumption #1 (i.e. Labor rate used, period of time, etc…) • Assumption #2 (i.e. contractor hrs or FTE, source of data, etc…) • Describe the Type 3 Business Impact(s) areas and how these were measured • Assumption #1 (i.e. project is driven by the Business strategy?) • Assumption #2 (i.e. Customer service rating, employee moral, etc…) • Other Questions • Stakeholders agree on the project’s impact and how it will be measured in financial terms? • What steps were taken to ensure the integrity & accuracy of the data? • Has the project tracking worksheet been updated? Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

10. Current Status • Key actions completed • Issues • Lessons learned • Communication, team building, organizational activities Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

11. Next Steps • Questions to answer • Barrier/risk mitigation activities • Key actions • Planned Lean Six Sigma Tool use Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

12. Improve Summary Solution Selection Criteria Pilot and Implementation Plan How the solution was determined: • What was the solution selection tool used? • What project management tools were used? • Cost/benefit analysis? • Include any other tools or methods used • ? • ? • ? • ? • ? Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

13. Sign Off • I concur that the Improve phase was successfully completed on MM/DD/YYYY • I concur the project is ready to proceed to next phase: Analyze Enter Name Here Green Belt/Black Belt Enter Name Here Deployment Champion Enter Name Here Sponsor / Process Owner Enter Name Here Financial Representative Enter Name Here Master Black Belt Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

14. Tollgate ReviewsBackup Slides Halt - Hold D M A I C Go Forward Wait - Go Back

15. Project Charter Problem:Describe problem in non-technical terms • Statement should explain why project is important; why working on it is a priority Goal: Goals communicate “before” and “after” conditions • Shift mean, variance, or both? • Should impact cost, time, quality dimensions • Express goals using SMART criteria • Specific, Measurable, Attainable, Resource Requirements, Time Boundaries • Explain leverage and strategic implications (if any) Problem/Goal Statement Financial Impact • State financial impact of project • Expenses • Investments (inventory, capital, A/R) • Revenues • Separate “hard” from “soft” dollars • State financial impact of leverage opportunities (future projects) Team Tollgate Review Schedule • PES Name Project Executive Sponsor (if different from PS) • PS Name Project Sponsor/Process Owner • DC Name Deployment Champion • GB/BB Name Green Belt/Black Belt • MBB Name Master Black Belt • Core Team Role % Contrib. LSS Training • Team Member 1 SME XX YB • Team Member 2 TM XX GB • Team Member 3 SME XX PS • Extended Team • Team Member 1 BFM XX Not Trained • Team Member 2 IT XX Not Trained TollgateScheduledRevisedComplete Define: XX/XX/XX - XX/XX/XX Measure: XX/XX/XX XX/XX/XX XX/XX/XX Analyze: XX/XX/XX XX/XX/XX XX/XX/XX Improve: XX/XX/XX XX/XX/XX XX/XX/XX Control: XX/XX/XX XX/XX/XX XX/XX/XX • Review high-level schedule milestones here: • Phase Completions • Tollgate Reviews Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

16. Measure Overview • CTQ: ? • Unit (d) or Mean (c): ? • Defect (d) or St. Dev. (c): ? • PCE%: ? • DPMO (d): ? • Sigma (Short Term): ? • Sigma (Long Term):? • MSA Results: show the percentage result of the GR&R, AR&R or other MSA carried out in the project Process Capability Graphical Analysis Tools Used Root Cause / Quick Win • Time Series Plot • Probability Plot • Pareto Analysis • Operational Def. • 5s • Pull • Control Charts • Detailed process mapping • MSA • Value Stream Mapping • Data Collection Planning • Basic Statistics • Process Capability • Histograms • Root cause: • Quick Win #1 • Root cause: • Quick Win #2 • Root cause: • Quick Win #3 Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

17. AnalyzeTollgate Checklist Stop Tollgate Review • Has the team examined the process and identified potential bottlenecks, disconnects and redundancies that could contribute to the problem statement? • Has the team analyzed data about the process and its performance to help stratify the problem, understand reasons for variation in the process, and generate hypothesis as to the root causes of the current process performance? • Has an evaluation been done to determine whether the problem can be solved without a fundamental recreation of the process? Has the decision been confirmed with the Project Sponsor? • Has the team investigated and validated (or devalidated) the root cause hypotheses generated earlier, to gain confidence that the “vital few” root causes have been uncovered? • Does the team understand why the problem (the Quality, Cycle Time or Cost Efficiency issue identified in the Problem Statement) is being seen? • Has the team been able to identify any additional ‘Quick Wins’? • Have learningsto-date required modification of the Project Charter? If so, have these changes been approved by the Project Sponsor and the Key Stakeholders? • Have any new risks to project success been identified, added to the Risk Mitigation Plan, and a mitigation strategy put in place? Deliverables: • List of Potential Root causes • Prioritized List of Validated Root Causes • Additional “Quick Wins”, if applicable • Refined Charter, as necessary • Updated Risk Mitigation Plan • Deliverables Uploaded to Central Storage Location or Deployment Management System Has the team identified the key factors (critical X’s) that have the biggest impact on process performance? Have they validated the root causes? International Standards for Lean Six Sigma 17

18. ImproveTollgate Checklist Stop Tollgate Review • What techniques were used to generate ideas for potential solutions? • What narrowing and screening techniques were used to further develop and qualify potential solutions? • What evaluation criteria were used to select a recommended solution? • Do proposed solutions address all the identified root causes, at least the most critical? • Were the solutions verified with the Project Sponsor and Stakeholders? Has an approval been received to implement? • Was a pilot run to test the solution? What was learned? What modifications made? • Has the team seen evidence that the root causes of the initial problems have been addressed during the pilot? What are the expected benefits? • Has the team considered potential problems and unintended consequences (FMEA) of the solution and developed preventive and contingency actions to address them? • Has the proposed solution been documented, including process participants, job descriptions and if applicable, their estimated time commitment to support the process? • Has the team developed an implementation plan? What is the status? • Have changes been communicated to all the appropriate people? • Has the team been able to identify any additional ‘Quick Wins’? • Have ‘learning's’ to-date required modification of the Project Charter? If so, have these changes been approved by the Project Sponsor and the Key Stakeholders? • Have any new risks to project success been identified and added to the Risk Mitigation Plan? Deliverables: • Prioritized List of Solutions • “To-Be” Value Stream Map(s) • Pilot Plan & Results • Approved Solution and Detailed Implementation Plan • Additional “Quick Wins”, if applicable • Refined Charter, as necessary • Updated Risk Mitigation Plan • Deliverables Uploaded to Central Storage Location or Deployment Management System Has the team developed improvement solutions for the critical X’s, piloted the solution and verified that the solution will solve the problem? International Standards for Lean Six Sigma 18

19. ControlTollgate Checklist Stop Tollgate Review • Has the team prepared all the essential documentation for the improved process, including revised/new Standard Operating Procedures (SOP’s), a training plan and a process control system? • Has the necessary training for process owners/operators been performed? • Have the right measures been selected, and documented as part of the Process Control System, to monitor performance of the process and the continued effectiveness of the solution? Has the metrics briefing plan/schedule been documented? Who owns the measures? Has the Process Owner’s job description been updated to reflect the new responsibilities? What happens if minimum performance is not achieved? • Has the solution been effectively implemented? Has the team compiled results data confirming that the solution has achieved the goals defined in the Project Charter? • Has the Benefits Realization Schedule been verified by the Financial Representative? • Has the process been transitioned to the Process Owner, to take over responsibility for managing continuing operations? Do they concur with the control plan? • Has a final Storyboard documenting the project work been developed? • Has the team forwarded other issues/opportunities, which were not able to be addressed, to senior management? • Have “lessons learned” been captured? • Have replication opportunities been identified and communicated? • Has the hard work and successful efforts of our team been celebrated? Deliverables: • SOP’s • Training Plan • Process Control System • Benefits Realization Schedule, validated by Financial Representative • Validated Solution • Replication/ Standardization Plan • Lessons Learned • Transitioned Project • Project Risk Performance • Deliverables Uploaded to Central Storage Location or Deployment Management System Has the team implemented the solution, and a control plan to insure the process is robust to change? International Standards for Lean Six Sigma 19

20. Lean Six Sigma DMAIC Improvement Process • Define the opportunity from both the customer and business perspective Define Tollgate Review • Understand the baseline process performance Stop Measure • Identify the critical X factors and root causes impacting process performance Tollgate Review Analyze Stop Tollgate Review • Develop solutions linked to critical x’s Stop Improve Tollgate Review Stop • Implement solutions & control plan Control Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

21. Evaluating Solutions Against Criteria (Optional) #1 #2 #3 #4 Root Causes 250 200 150 100 50 0 100% 80% 60% 40% 20% 0% % Contribution of Root Cause to Process Deficiency Solutions Root Cause #1 40% Root Cause #2 25% Root Cause #3 20% Root Cause #4 10% Solution A 80% Solution B 20% 80% Solution C 30% 100% Solution D Solution E 20% 5% Example: Independent Solutions Solution A = a 32% reduction in defects (80% of 40%) Solution B = a 21% reduction in defects (20% of 25% + 80% of 20%)=(5%+16%) Solution C = a 17.5% reduction in defects (30% of 25% + 100% of 10%)=(7.5%+10%) Implementing Solutions A & B achieve a 53% reduction in defects. (Assumes no interaction effects of the solutions) Original goal is a 50% reduction. Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

22. Design of Experiments (DOE)Results (Optional) The number of Employees is the biggest driver for Mean Time Late • Employee is the only statistically significant factor for Mean besides the constant term. All other main effects & 2-way interactions have a p-value > 0.05. • Ymean=f(x) equation is: Ymean = -27.97(Employee) + 29.64 Pareto Chart for Mean Time Late Number of Employeesis the only significant factor for Mean - Time Late Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

23. Pugh (Selection) Matrix(Optional) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

24. Benefit-Effort Matrix(Optional) Low Low Med Med High High Benefit Highly Desirable Opportunities Projects in upper left are the most desirable projects. Potentially Desirable Opportunities Projects in the upper right are potentially desirable, but usually require more analysis to ensure good decision making. “Potential Quick Hits” Possibility for Kaizen event or small GB project Least Desirable Opportunities Projects in the lower right are the least desirable. 16 1 8 12 7 3 4 17 10 13 9 6 14 11 2 15 5 Effort Low Low Med Med High High Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

25. Stakeholder Analysis(Optional) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

26. Influence Strategy(Optional) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

27. Measurement Systems Analysis (MSA) (Optional) Gage R&R %Contribution Source VarComp (of VarComp) Total Gage R&R 0.0015896 3.70 Repeatability 0.0005567 1.29 Reproducibility 0.0010330 2.40 Operator 0.0003418 0.79 Operator*Part 0.0006912 1.61 Part-To-Part 0.0414247 96.30 Total Variation 0.0430143 100.00 Study Var %Study Var Source StdDev (SD) (6 * SD) (%SV) Total Gage R&R .039870 0.23922 19.22 Repeatability 0.023594 0.14156 11.38 Reproducibility 0.032140 0.19284 15.50 Operator 0.018488 0.11093 8.91 Operator*Part 0.026290 0.15774 12.68 Part-To-Part 0.203531 1.22118 98.13 Total Variation 0.207399 1.24439 100.00 Number of Distinct Categories = 7 • Measurement system is acceptable with the Total % Contribution <10% Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

28. Pull System(Optional) Bin 1 Bin 2 Bin 1 Bin 2 Bin 1 Bin 1 Bin 1 Bin 2 Bin 2 Bin 2 Bin 1 1. Always pull stock from bin with GREEN card if it is there. 2. Store/supply room replaces stocked items and switches RED card to items just replaced. 3. The cards are attached to magnetic strip labels (for ease of movement for resizing). 2-Bin Mailbox Bin 1 Order Cards Bin 1 Bin 2 Bin 1 Bin 2 Bin 1 Bin 2 Bin 1 Bin 2 Bin 1 Bin 2 Bin 1 Bin 1 Bin 1 Bin 2 Bin 1 Bin 2 Bin 1 Bin 2 Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

29. Setup Reduction(Optional) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

30. PDCA(Optional) • Plan: • ? • ? • Do: • ? • ? • Check: • ? • ? • Act: • ? • ? ? Plan ? Do ? Check ? Act Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

31. 5s(Optional) Sort • ? • ? Set Order • ? • ? Shine • ? • ? Standardize • ? • ? Sustain • ? • ? Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

32. Kaizen(Optional) • Typical Kaizen Weekly Schedule Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

33. Benchmark Analysis(Optional) Based on the information above, what is the performance objective*? • Reduce defects by % • Reduce long-term DPMO from to . • Improve short-term Z from to . *If you do not benchmark, performance standards are based on: • For a process with  3 sigma level, decrease % defects by 10x. • For a process with > 3 sigma level, decrease % defects by 2x. • Other….please explain (corporate mandate, compliance/legal, VOC data, etc) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

34. Key Buying Factor Analysis(Optional) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

35. Pilot Plan(Optional) Pilot Test Description Success Criteria Test Team Schedule Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

36. Pilot Observations: 1) Data Reception Weak – 12th Floor, SW Rooms 2) Data Entry Sequence Confusing GAP Analysis/Root Causes: 1) Insufficient radio transceivers, 12th Floor 2) Order of questions confusing staff Follow-up Actions: 1) Add four more radio transceivers 2) Resequence guest questions Verify Pilot Results(Optional) x Measurement Plan: Pilot Plan Target Measure s Comments CTQs Process time 1 minute 0.5 min. 0.05 min. CTQs Data Transmission Accuracy 100 DPMO < 3.4 DPMO Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

37. Summarizing Pilot Conclusions (Optional) • Once all the pilot data has been collected and the results verified, the team can determine the next steps toward solution implementation. Only after an objective and comprehensive assessment of the pilot can responsible “next step” decisions be made. • Some questions a team should ask upon the completion of a pilot to help guide them toward identification of the proper next steps are: • Did pilot have anticipated results? • Was the plan for conducting the pilot effective? • What improvements can we make to the solution? • Can the solution be implemented “as-is”? Should it be? • Can the solution remain in place at the pilot location? • What lessons learned and best practices can we apply during solution implementation? • Did the solution achieve the required design goals? Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

38. KaizenAction Workout (Optional) Planning Execution Before • ? • ? • ? • ? • ? • ? • ? • ? • ? • ? • ? • ? • ? • ? • ? Root Causes / Quick Wins Graphical Analysis After • Root cause: • Quick Win #1 • Root cause: • Quick Win #2 • Root cause: • Quick Win #3 • ? • ? • ? • ? • ? • ? • ? • ? • ? • ? Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

39. Technical-Political-CulturalTPC Analysis (Optional) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

40. Multi-Generational Project Plan (Optional) Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma

41. Cost/Benefit Analysis(Optional) • Identify the various solution options • Describe the Type 1 solution $ gained from the expected process improvement • Calculate the total cost of ownership to fully implement the solution Enter Key Slide Take Away (Key Point) Here International Standards for Lean Six Sigma