5. the dmaic: define stage detail (1,002 k ppt)

© Max Zornada (2005) Slide 1

The DMAIC Process DetailThe DMAIC Process DetailThe Define PhaseThe Define Phase


The Define StageThe Define Stage

The Voice of the

Business

The Voice of the

Customer

The Voice of the

Process

Define

Business Case and Project Team Charter

Define the Customer and the Customer Requirements

Define and map the process


The Define PhaseThe Define Phase

Identify and confirm the improvement opportunity; Develop a Project Team Charter Build an Effective Team; Define the Customer and Customer Requirement; Define and Map the Process.


DMAIC Process StoryboardDMAIC Process StoryboardTEAM FORMATION DEFINE MEASURE

ANALYSE IMPROVE - I : Generate Potential Solutions

CONTROL - Standardise FUTURE PLANS

Define, Measure, Analyse, Improve, Control

Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity.

Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis

Objective: Identify and verify the root cause(s) of the problem.

Output: Root cause(s) identified.

Cause and Effect Diagram(Fishbone)

Pareto Chart

Checksheet

Objective: Determine possible solutions that will address the identified root cause(s) of the problem.

Action Plan

Step 1Step 2Step 3Step 4Step 5Step 6

Output: Preferred solution or countermeasures

Key Steps:-

•Generate potential solutions•Assess potential solutions•Select preferred solution•Test/Pilot preferred solution•Develop implementation plan

Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated.

Before

After

Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented.

Key steps:-•Implement preferred solution•Verify effectiveness•Apply comparative methods if necessary.

Objective: Prevent the problem and its root cause from recurring.

Flowchart Standard procedure

Output: Solution embedded and “routinised” in relevant process, procedures and standards.

Key steps:-•Standardise the solution (standards & procedures)•Document project•Implement scorecard•Implement controls

Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning.

Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack”

Potential Solutions

D

MA

C

I

IMPROVE - II: Implement and Check

Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process.

Output: A quantified picture of the current process performance, problem impact. The process sigma rating.

Objective: Select problem/ opportunity theme, select team members

Output: Problem/Opportunity selected, Team members selected.

•Develop business case•Develop project team charter•Understand Customer Requirements•Understand the Process.

•Determine what to measure•Understand the measures•Understand Variation•Assess measurement system•Assess process performance

Problem Solving Team

Key Steps:-Key Steps:-

FlowchartTeam charter Cause and Effect Diagram Run chart or

control chart

•Analyse data•Analyse process•Determine potential root causes•Hypothesis Testing•Verify root causes

Key Steps:-

Key Steps:-•Review remaining project opportunities•Review other applications•Review learnings


Team FormationTeam Formation


Team – A DefinitionTeam – A Definition

Common people, working together to attain uncommon results;

A team is a small number of people with complementary skills, who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable.

Katzenback, Jon R. and Smith, Douglas K. The Wisdom of Teams, 1995


The Components of Teamwork The Components of Teamwork

Teamwork

Content

Task Relationship

Process

What we do How we do it

How to do it How we feel

Technical inputs required to progress the problem solving process through to a solution. eg.

Technical skills; Technical knowledge; Knowledge of the process and

of the business; Data and information; Other specific inputs.

The DMIAC process Six Sigma Process Improvement

and Problem solving tools and techniques,

Statistical techniques.

Facilitating group processes;

Making the team fun to be a part of;

Recognising/appreciating contributions


Characteristics of an Effective TeamCharacteristics of an Effective Team The atmosphere tends to be informal, comfortable, relaxed. There are no obvious

tensions; There is a lot of discussion in which virtually everyone participates, but it remains

pertinent to the task of the group; The task or objective of the group is well understood and accepted by the members; The members listen to each other; There is disagreement; Most decisions are reached by a kind of consensus, in which it is clear that

everybody is in general agreement and willing to go along; Criticism is frequent, frank and relatively comfortable; People are free in expressing their feelings as well as their ideas, both on the

problem and on the group's operation; When action is taken, clear assignments are made and accepted; The team leader does not dominate it, nor does the team defer unduly to him/her; The team is self-conscious about its own operations.


Stages of Team DevelopmentStages of Team Development

Forming

Storming

Norming

Performing

Adjourning

Per

form

ance

Time


Stages of Team DevelopmentStages of Team Development

Forming Storming Norming Performing Adjourning

Clarify the mission/ purpose of the team;

Establish specific objectives and tasks;

Identify roles and responsibilities of team members.

Get acquainted with one another;

Establish a set of ground rules;

Recognising that people are checking each other out.

Reestablish roles &/or ground rules;

Acknowledge & confront conflict by focusing on the facts;

Clarify & understand the team's purpose

Actively listen to all options;

Respond to feelings that emerge or are hidden;

Create focus to direct team efforts.

Develop decision making process;

Be prepared to offer ideas & suggestions;

Utilise all resources to support team effort.Support the team's decisions in and outside the team;

Give and receive feedback comfortably;

Respect individual differences.

Actively contribute ideas;

Achieve desired objectives;

Establish milestones for success.

Feel a sense of satisfaction;

Develop personal & professional relationships;

Find ways to sustain momentum and enthusiasm.

Evaluate efforts;

Tie up loose ends, discuss future plans;

Recognise and reward team efforts.

Express thanks and appreciation;

Discuss feelings, many may feel sad, depressed;

Create a sense of closure, reduce dependency on team

Tas

kR

elat

ions

hip

Job done!Cooperating and getting involved

We do not agree

Who are we? Getting to know each other?

This is as good as it gets!


Launching the TeamLaunching the Team

Form the team; Establish ground rules; Develop a team

mission/purpose; Develop a shared team vision; Develop specific team goals,

objectives and performance targets.

From Katzenback, Jon R. and Smith, Douglas K. The Wisdom of Teams, 1995

Team/ Project Charter


Skills and Knowledge Required by the TeamSkills and Knowledge Required by the Team

Six Sigma Process Improvement/

Problem Solving Skills

Technical job skills and knowledge of the

business.

Group process facilitation and

interpersonal skills

Team Leadership Skills


Successful Team FunctioningSuccessful Team Functioning Clarity in team goals; A plan to work to; Clearly defined roles; Clear communication; Beneficial team behaviours; Well-defined decision procedures; Balanced participation; Established group rules; Awareness of the group process; Use of the scientific approach (in Six Sigma DMAIC).

From Peter Scholtes: The Team Handbook.

In Six Sigma, provided by the project/ team charter


Where teams and team based efforts have Where teams and team based efforts have failed, they typically:failed, they typically:

Lacked management support and resources; Lacked the training or the disciplines to apply "team basics" to their

work i.e. no formal process like PDCA or DMAIC; Worked on projects that were considered unimportant and not

connected to core business; Were not considered or integrated into long-term organisational plans; Were led by leaders that lacked leadership "know how" and/or had

minimal training as team leaders.Adapted from Katzenback, Jon R. and Smith, Douglas K. The Wisdom of Teams, 1995


Problem/Opportunity SelectionProblem/Opportunity Selection


Six Sigma Project SelectionSix Sigma Project SelectionEstablishing the Business CaseEstablishing the Business Case

The business case establishes the importance of the project to the business in terms of meeting business objectives;

Components of a business case: The output unit for the customer of the process, usually the external customer; The primary business measure of the output unit; The baseline of the primary business measure; The gap in the baseline performance with the business objective.

The purpose is to establish the need in terms of business objectives - usually expressed in financial terms.


Example: Business Case SEFPExample: Business Case SEFP

Output unit for the External Customer Boxes food product delivered to their customers;

Primary Business Measure of the output unit: Unit cost of Packaging in $/Box

Baseline of the primary business measure: $23.94 per box

Business Objective: $22.50 per box

Gap = $1.44 per box


Develop a Problem/Opportunity Theme Develop a Problem/Opportunity Theme StatementStatement

The problem/opportunity theme statement provides the initial definition of the problem/opportunity area to be pursued;

It is on the basis of the problem/opportunity theme statement that management decide to allocate resources (the problem solving team) and time to develop a project team charter and determine whether the problem/opportunity is worth pursuing.


Problem/Opportunity Theme StatementProblem/Opportunity Theme Statement

What is the area of concern? What first brought this problem or opportunity to the attention of your business?

What impact has this problem already had? What evidence is there that it is a problem worthy of attention?

What will happen if the business does not address this problem?

Summary problem statement (summarise the above in a concise statement).

Project Title:


Problem StatementsProblem Statements Problem Statements should ideally describe the following:-

What is wrong? Where is the problem appearing? How big is the problem? (Quantify) What is the impact of the problem on the business.

What problem statement should not do:- State and opinion of what is wrong; Describe the cause of the problem; Assignment blame or responsibility for the problem; Describe a solution; Combine several problems into one.


Identifying the problemIdentifying the problem

Developing a problem statement: What is the deviation - should vs actual? What is the symptom?

Be specific in what it is and what it is not; What is it? vs. what is it not? Where is it? vs. where could it also be but is not? When does it occur vs. when does it not occur? How many? How big?


Problems as deviationsProblems as deviations

What should be happening

What is happening

What is happening= What should be happeningNo Problem!

What is happening different to What should be happening= Problem!


Problems with Problem StatementsProblems with Problem StatementsDisguised Solutions!Disguised Solutions!

We’re experiencing delays in putting sales data in an understandable form. We have to purchase or otherwise obtain the necessary additional equipment. Turnover in the department is 20% higher than company average. Marketing reported a sudden increase in customer complaints about our

product. We need to redesign our main product to make it more modern? We must identify the specific training required to correct this performance. Error rates in the past two months are unacceptably high. We need to stream line the ordering process.


DMAIC Process StoryboardDMAIC Process StoryboardTEAM FORMATION DEFINE MEASURE

ANALYSE IMPROVE - I : Generate Potential Solutions

CONTROL - Standardise FUTURE PLANS

Define, Measure, Analyse, Improve, Control

Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity.

Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis

Objective: Identify and verify the root cause(s) of the problem.

Output: Root cause(s) identified.

Cause and Effect Diagram(Fishbone)

Pareto Chart

Checksheet

Objective: Determine possible solutions that will address the identified root cause(s) of the problem.

Action Plan

Step 1Step 2Step 3Step 4Step 5Step 6

Output: Preferred solution or countermeasures

Key Steps:-

•Generate potential solutions•Assess potential solutions•Select preferred solution•Test/Pilot preferred solution•Develop implementation plan

Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated.

Before

After

Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented.

Key steps:-•Implement preferred solution•Verify effectiveness•Apply comparative methods if necessary.

Objective: Prevent the problem and its root cause from recurring.

Flowchart Standard procedure

Output: Solution embedded and “routinised” in relevant process, procedures and standards.

Key steps:-•Standardise the solution (standards & procedures)•Document project•Implement scorecard•Implement controls

Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning.

Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack”

Potential Solutions

D

MA

C

I

IMPROVE - II: Implement and Check

Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process.

Output: A quantified picture of the current process performance, problem impact. The process sigma rating.

Objective: Select problem/ opportunity theme, select team members

Output: Problem/Opportunity selected, Team members selected.

•Develop business case•Develop project team charter•Understand Customer Requirements•Understand the Process.

•Determine what to measure•Understand the measures•Understand Variation•Assess measurement system•Assess process performance

Problem Solving Team

Key Steps:-Key Steps:-

FlowchartTeam charter Cause and Effect Diagram Run chart or

control chart

•Analyse data•Analyse process•Determine potential root causes•Hypothesis Testing•Verify root causes

Key Steps:-

Key Steps:-•Review remaining project opportunities•Review other applications•Review learnings


The Define StageThe Define Stage During the Define Stage, we:

Define our problem or opportunity and improvement objectives; Define the customers and their requirements - the Critical-to-Quality issues (CTQ); Define the process that will be affected; Develop a plan for completing the project;

Key outputs of the Define Stage: Team Project Charter and Work Plan Measurable Customer Requirements - Customer Requirements Statement Process Map/Process Analysis.


Process

Green Belt

Champion

Start Date

Expected Financial Impact

Telephone Number

Organization/Function

Target Completion Date

Six Sigma Project Team CharterProject Title

Objective

Problem/Opportunity Definition

What is the Problem to be solved or the opportunity this project will exploit.

Business Case

Team Members

Project Scope

Customer Benefit

Improvement target, impact on Sigma, COQ/COPQ and Customer Satisfaction

Schedule

What improvement in business performance is expected. $ impact and by when.

Who are the team members and key experts to be consulted.

Which part of the process will be investigated

Who are the final customers. What benefits will they see and what are their most critical requirements.

What are key milestone dates for completion of each stage.

Define completion

Measure completion

Analyse completion

Improve completion

Control completion

Project Completion

Cost of Waste Reduction Project

Jane VerdeJohn Briggs

1-April

Reduce net spoilage rate by 50% from 6% to 3%. Estimated Sigma level improvement from 3 to 3.4

Reduction in cost of waste of $253,000 p.a. from a baseline of $506,000. Will result in target processing cost/box being achieved.

634-5789Packaging Operations1- October

$253,000Box Packaging

Jane Verde (Team Leader), Paul Black, Rachel Cintura, Roland Thompson, Sdravo Krysevic, Giovanni Nero (Black Belt) Box packaging from start of box filling through to placement of product on buyer shelves.

The packaging customers for whom we package and deliver product to buyers such as supermarkets and wholesalers. Benefits: competitive costs and more accurate schedule compliance.

20-April1-June1-August1-September15-September1-October

The cost of waste in box packaging is excessive and causes box packaging operations to run at a loss. The cost of waste needs to be reduced to achieve target cost levels.


Key Elements of the Project Team Charter Key Elements of the Project Team Charter

Problem/Opportunity Definition – see previous problem/opportunity theme statement; Objective – quantified objective to be achieved with a specified timeframe – usually

expressed in physical units; Business Case – business impact expected from the project, usually expressed in

financial terms; Team Members – who will be on the team; Project Scope – what is the project about, what is it not about. Provides focus. Customer Benefits – what impact will it have on the customer. Work Plan/Schedule with Key Milestones defined e.g. approximate time frame for each

stage of the DMAIC Process


Setting ObjectivesSetting ObjectivesThe SMART PrincipleThe SMART Principle

S for Specific - Objectives have to be specific and describe exactly what you want to achieve. Need to be able to answer the question “How will I know I have achieved my objective?”

M for Measurable - if you cannot measure, you cannot manage. Objectives must be expressed in quantified (numbers) terms.

A for Achievable - Objectives need to challenge enough to provide incentive, but not be unattainable.

R for Relevant - Objectives must produce something of benefit. Phrase the objectives in results term - what you want to achieve, not how you will achieve it.

T for Time Targeted - Objective must always specific a time frame by when they need to be achieved. If you do not know when you want to achieve you objectives by, you will always be on track.


Breaking Down “Big” ObjectivesBreaking Down “Big” ObjectivesExample: Transaction Processing OperationExample: Transaction Processing Operation

Ask why?to go up

Ask how?to go down Develop daily

schedules for allocatingwork to people

Improve allocationof work to people

Simplify workprocesses

Improve LabourProductivity

Reduce Rework

Reduce costs/transactionby 10%


Gantt Chart Working Plan DevelopmentGantt Chart Working Plan DevelopmentLayout project tasks on planning proformaLayout project tasks on planning proforma

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Weeks

Task People

Finalise project charterDevelop CR statementValidate CR StatementDevelop process mapMile stone – end of define phaseDetermine measuresCollect measuresAnalyse measuresAssess process stabilityAssess process capability/ sigmaMile stone – end of measure phaseEtc.


Gantt Chart Working Plan DevelopmentGantt Chart Working Plan DevelopmentEstimate durations and time phase to indicate work sequenceEstimate durations and time phase to indicate work sequence

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Weeks

Task People

Finalise project charterDevelop CR statementValidate CR StatementDevelop process mapMile stone – end of define phaseDetermine measuresCollect measuresAnalyse measuresAssess process stabilityAssess process capability/ sigmaMile stone – end of measure phaseEtc. …

Key Milestones


Gantt Chart Working Plan DevelopmentGantt Chart Working Plan DevelopmentAllocate People to TasksAllocate People to Tasks

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Weeks

Task People


221111111122

2 2 2 2 2 2 3 3 2 2 22


Example:Project Gantt Chart & Resource Histogram on ExcelExample:Project Gantt Chart & Resource Histogram on Excel

Schedule bars are drawn using the cell pattern function

Float drawn using the cell borders function.


Gantt Chart Working Plan Implementation Gantt Chart Working Plan Implementation Updating ProgressUpdating Progress

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Weeks

Task People


221111111122

2 2 2 2 2 2 3 3 2 2 22


Define the Customer and the Customer Define the Customer and the Customer RequirementsRequirements


Who are our customers ? Who are our customers ? A customer is anyone who comes into contact with our workA customer is anyone who comes into contact with our work

External Customer

Supplier

Internal Customers

External Customers Those outside the organisation who use, buy or are affected by

our work. Internal Customers

Those within the organisation, who will be affected by our work. The next person in the process, those who may need to add to, respond to or adapt to our work.


What is quality ?What is quality ?Toyota or Rolls ?Toyota or Rolls ?

Both the Rolls Royce and the Toyota are consistently suited to

their customers' purposes.

Which is higher quality?


Customer SegmentationCustomer Segmentation

Different customers have different requirements; Different customers have different priorities;

What Drives Customer Satisfaction

Perceived Quality

Perceived Value

+ = Customer Satisfaction


How Customers See QualityHow Customers See QualityQuality = Perceptions - ExpectationsQuality = Perceptions - Expectations

Expectations Perceptions

Customer

Content Process

What the customer gets, the actual service or product. The "technical dimension“ or output.

How they get it, the process by which the service or product is delivered. The service or “experience”.

Perceived Quality

Parasuraman, Zeithaml and Berry (1988)


Dimensions of QualityDimensions of Quality

Content Performance; Features; Reliability; Conformance; Durability; Serviceability; Aesthetics.

Process Tangibles; Reliability; Responsiveness; Competence; Courtesy; Credibility/Trustworthiness; Security; Access; Communication; Understanding the

Customer.


Content – Detailed DefinitionsContent – Detailed Definitions

Performance. Does the product or service's primary operating characteristic measure up to the customer's expectation. eg. Is service prompt in a fast food restaurant, does the TV have good picture and sound, does the high-interest account give high interest.

Features. Do the characteristics that supplement the basic function measure up to the customer's expectations. eg. Extra "bells and whistles", ability to customise your purchase.

Reliability. Once you've bought it will it work for you. Conformance. Does the design conform to established standards and does your

purchase conform to the design. Durability. Will it work for you on an on-going basis. Serviceability. Speed, courtesy, competence, ease of repair or ease with which

problems are addressed. Aesthetics. Look, feel, sound, taste, smell. Personal judgement a significant factor.


Process – Detailed Definitions Process – Detailed Definitions Tangibles. The physical evidence of service. eg. facilities, appearance of personnel,

tools/equipment used to provide the service, physical representations, other customers in the service facility.

Reliability. Consistency of performance, the organisation honours its promise and gets it right first time. eg. accuracy of billing, record kept correctly, no time delays.

Responsiveness. Willingness and readiness of employees to provide service. Promptness, timely follow-up, calling back quickly.

Competence. Skills and knowledge required to perform the service for contact and support personnel.

Courtesy. Involves politeness, respect, consideration and friendliness of contact personnel. Credibility. Trustworthiness, believability, honesty, having the customers best interest at heart.

Contributing to credibility are company name, reputation, personal characteristics of contact personnel, "degree of hard sell".

Security. Freedom from physical danger, financial risk, or doubt about confidentiality. Access. Service is easily accessible, waiting time not excessive, convenient hours of operation,

convenient locations. Communication. Keeping the customer informed and listening to them. eg. explaining the

service, costs, trade-offs, how problems will be handled. Understanding the Customer. Understanding the customer's needs. eg. learning the customer's

specific requirements, providing individualised attention, recognising the regular customer.


How Customers form ExpectationsHow Customers form Expectations

Past Experience

External CommunicationsMarketing Strategies

QualityDimensionsProcess & Content

CompetitorsWord of Mouth

Controllable Expectation Creators

Un-controllable Expectation Creators

Personal Needs and Preferences

Expectationsof product or service


Managing the Customer InterfaceManaging the Customer Interface

Percep-tions

Expect-ations

Quality

Customer

Internal ProcessesCustomer interface

Service Delivery

Perception

Disatisfaction

Delighted

Satisfied


Focus on the ProcessFocus on the Process

Customers often assume content; Provided the content is in the right “ball park”

Customers often cannot tell the difference between good and bad content;

Most of what they judge is process; Process is important!


The RATER FrameworkThe RATER FrameworkA framework for understanding customer processA framework for understanding customer process

The RATER framework consolidates the dimensions of service or customer process quality into 5 key themes.

Reliability - ability to perform promised service, dependably and accurately;

Assurance - Knowledge and courtesy of employees and their ability to inspire trust and confidence;

Tangibles - physical facilities, appearance of personnel etc.; Empathy - Providing personal understanding and customer support; Responsiveness - Willingness to help and provide prompt service.

Parasuraman, Zeithaml and Berry (1988)


The RATER FrameworkThe RATER Framework The RATER framework provides us with a tool for understanding and

specifying the “service” or “process” dimension of the customer requirements;

Used for determining what we need to establish service standards for and what these standards should be in managing interactions with customers;

Can be used for designing the “operational infrastructure” required to deliver customer service to the required service standards. That is:- Processes, Organisation and Technology


Applying the RATER FrameworkApplying the RATER FrameworkExample: The Room Service ProcessExample: The Room Service Process

Guest Calls Room Service, Service Cycle.Guest Calls Room Service, Service Cycle.

Quality Dimension Quality Service Standards – Customer Requirements

Responsiveness

Assurance

Tangibles

Empathy

Phone operator has thorough knowledge of menu and prices

There is a menu in the room giving full description of what is available. Specific delivery time stated

Effort to comply with any special requests. Prompt service.

Reliability Phone answered within five rings, 24 hours a day

Customer name used. Prescribed guest treatment procedure carried out with sincerity. Order taken in a courteous manner.


Using RATER to Design Service Using RATER to Design Service ProcessesProcesses

Responsiveness

Assurance

Tangibles

Empathy

Reliability

Quality Dimension

Quality Service Standards

Supporting Infrastructure - Processes/People/Technology

What does it mean? How do we do it?


Managing Perceptions of QualityManaging Perceptions of Quality

Responsiveness

Assurance

Tangibles

Empathy

Reliability

Think of a customer contact point associated with a service you currently provide to a customer(s), how are he following dimensions managed? What could you do?Service : .

Quality Dimension Quality Service Standards – Customer Requirements


Moments of TruthMoments of Truth

A moment of truth is any episode in which a customer comes into contact with any aspect of the organisation, however remote, and gets an impression of the quality

of its service.

When the moments of truth go unmanaged, service quality regresses to mediocrity and the customer

experience of the service is poor.


Typical Moments of TruthTypical Moments of Truth

Customer walks in the door; Customer telephones us; Customer receives a bill; Customer makes a special request; Customer discovers a slip-up; etc., etc.;


Identifying the “Moments of Truth”Identifying the “Moments of Truth”

Review service critical incident reports to identify the types of things that go wrong;

Review compensation/warranty claims etc. to see what the cause was;

Understand the service cycle through "service blue printing" (process mapping); Anticipate the likely moments of truth;


A Service System MapA Service System MapUnderstanding the Customer’s ViewUnderstanding the Customer’s View

Customer Front Line Assessm't Stamp Settlem'tManager Valuation Document'n Broker


The Service CycleThe Service Cycle



Identifying the Critical Moments of TruthIdentifying the Critical Moments of Truth



Listening to the Voice of the CustomerListening to the Voice of the Customer


Listening to The Voice of the CustomerListening to The Voice of the CustomerTools and TechniquesTools and Techniques

Focus groups; Face-to-face interviews; Periodic/regular formal surveys/questionnaires; Customer comment and complaint analysis; Follow-up telephone calls; Critical incident reports produced by front-line staff; Visits to major customers by management and employees; Toll-free telephone number; Follow-up customers who have discontinued dealing with us; Involve customers formally in product development; Mystery shopping.

Methods for obtaining feedback on customer expectations, perceptions and satisfaction.


Customer SurveysCustomer Surveys


Adapted QuestionnairesAdapted Questionnaires

Adapted questionnaires aim to measure those dimensions relevant to a specific organisation and/or important to a specific customer group(s);

They can be designed to have a small number of questions (eg. 10), results in an increased rate of return;

Can be flexible in mode of application. eg. Customer can fill out, staff can use in face-to-face or telephone interview;

Can be completed by staff and management. Comparison with customer returns can identify improvement priorities, "blind spots" and hidden strengths;

Questions need to test the perceptions/expectation “gap”.


Using Adapted QuestionnairesUsing Adapted Questionnaires

Questionnaires should also allow customers to give free format feedback, and not restrict them to pre-structured questions;

Unstructured customer feedback can provide the spark for service and product extensions, cross-selling and innovation;

Use as an ongoing monitoring tool, job-by-job, weekly, monthly - not the “big” annual customer survey.


Adapted Questionnaires - Scoring SystemAdapted Questionnaires - Scoring System

Expectations not met

Expectations met

Expectations exceeded

Unacceptable quality

Satisfactory quality

Ideal quality

-2-1012

"Much less than expected"

"Very disappointed"

"As I expected"

"Satisfied"

"Much more than I expected" Very impressed"

No need for paired expectation-perception questions; Use - to + scale corresponding to expectations not

met/met; Reduces the number of questions required to extract

the same information.


Example: Hotel Customer Satisfaction Example: Hotel Customer Satisfaction QuestionnaireQuestionnaire

Assume a typical 10 question questionnaire


Assessing Questionnaire ResultsAssessing Questionnaire ResultsHotel ExampleHotel Example

12345678910

0.91.00.50.30.80.41.20.90.81.1

1.21.30.91.91.30.80.61.01.21.1

-0.3-0.3-0.4-1.6-0.5-0.4+0.6-0.1-0.4 0.0

! : immediate corrective action required, C : check out for any obvious quick fixM : maintain standard, D : apparently delighting, find out why

MMC!CCDMMM

Item Guest Ave. Staff Ave. Gap Action


Customer Monitoring: A Strategy Customer Monitoring: A Strategy OverviewOverview

Major Customer Survey

“Not very often”

Adapted QuestionnairesWeekly, by job, etc.

Identify Customer Priorities

Weekly Customer Performance Monitors

Monitor Questionnaires for relevance, general feedback and innovation opportunities.

Redo Major Survey when questions no longer reflect customer priorities.


Customer Satisfaction and LoyaltyCustomer Satisfaction and Loyalty


Impact of Customer Satisfaction on Impact of Customer Satisfaction on LoyaltyLoyalty

Using a 5 point customer satisfaction rating. From Heil, G., Service Quality Improvement Seminar, Sydney (1992)

Rating CategoryWould Repurchase

Would Recommend

Completely Satisfied 90% 96%

Somewhat Satisfied 56% 71%

Neither Satisfied Nor Dissatisfied 12% 19%

Somewhat Dissatisfied 3% 0%

Very Dissatisfied 7% 7%


Managing Customer Perceptions of QualityManaging Customer Perceptions of Quality Identify the elements of customer expectations you can control; Expectation levels should be set high enough to attract business, but

accurately enough to reflect the reality of what is likely to be delivered 99.9% of the time;

Focus on improving areas where expectations are low and importance to the customer is high; Strategic gaps in the market that provide viable footholds.

Customer expectations will increase with time - so should your ability to meet them. Plan for it!;

Surprise is one way to exceed customer expectations. Promise what to expect, deliver more, sometimes surprise customers. E.g. “going the extra mile when it matters.


Kano AnalysisKano Analysis

Low Customer Satisfaction

High Customer Satisfaction

Done Very WellNot Done or Done Poorly

DelightersBreakthrough Customer Needs/Features

Dis-satisfiersBasic Requirements

SatisfiersCore Competitive Requirements


Kano AnalysisKano Analysis

Low Customer Satisfaction

High Customer Satisfaction

Done Very WellNot Done of Done Poorly

DelightersBreakthrough Customer Needs/Features

Dis-satisfiersBasic Requirements

SatisfiersCore Competitive Requirements


Defining the Customer Requirements and Defining the Customer Requirements and Critical-to-Quality RequirementsCritical-to-Quality Requirements

Cus

tom

er V

alue

Process/ Service/ Experience

Content

RATER Analysis

Critical Customer RequirementsCTQ Requirements

Optional KANO Analysis

Customer Requirements Statement & Ranking

Validate with Customers

Interviews, focus groups, questionnaires, complaints & feedback analysis


Simple Customer Requirements StatementSimple Customer Requirements Statement

Customers need to have their food products packaged at a competitive price ($23.50) and

delivered to their customers as per their schedule and order quantity manifest (100%

compliance).


Example: SEFP’s Customer Requirements StatementExample: SEFP’s Customer Requirements Statement

What is this customer’s major complaint? What issue would they want us to work on?

Outputs: Customer:

Customer Requirements Measure Importance to Customer

Customer Satisfaction

PriorityRating

1. Cost competitiveness

Boxed product delivered to buyers according to customer manifest.Contract Box Packaging Customers

(Importance x Satisfaction)

Target

2. Schedule compliance

2.1. On-time delivery/right day/right time.

2.2. Right product delivered

2.3. Product quality to specification

2.4. Right amount/ amount as per manifest.

Processing cost $/Box

% On timeReturns: wrong product %

Returns: off-spec product %Order shortfall %

Ranking SchemeImportance to customer: 1 = Nice to Have, 2 = Important, 3 = Critical, Must HaveCustomer Satisfaction: 1 = Very Satisfied, 2 = OK. Could be better, 3 = Unhappy, Must be improved

$22.50

97%

95%

99%

99%

3 3* 9*

2 1 2

2 1 2

3 2 6

3 3 9

*Note: customer has not complained about price because we are absorbing difference between market price and actual costs. If customer were charged actual cost we would lose the business.In addition to price, getting the delivery amount right is a Critical-to-Quality issue for the customer.


Define the ProcessDefine the Process


Define the ProcessDefine the Process

What process? Identifying the process; Tools for documenting and analysing our processes:

SIPOC Process Blocking Top-Down Process Map Process Mapping Process Deployment Chart Process Flow Analysis


Identifying ProcessesIdentifying Processes

Ask the following questions: What are we doing for a customer? What is the first step in the chain of events that

lead to meeting the customer need ? What are all the steps in between including the

decisions and choices that need to be made? What order or sequence do the steps flow in from

start to finish ?


Identifying the Customer and what it is Identifying the Customer and what it is we do for them ……we do for them ……

Customer

Outcome

Satisfaction


Identifying what it is that tells us we have to Identifying what it is that tells us we have to do this for them … the “triggering event” do this for them … the “triggering event”

which kicks off an operation of the process.which kicks off an operation of the process.

Customer

Outcome

Satisfaction

TriggeringEvent


Identify all of the tasks, operations, activities, Identify all of the tasks, operations, activities, judgements, decisions, inspections and checks which judgements, decisions, inspections and checks which

must be done along the way in order to deliver the must be done along the way in order to deliver the required outcome to the customer.required outcome to the customer.

Customer

Outcome

Satisfaction

TriggeringEvent

Task or activity required to progress the process

Decision, judgement, inspection, check point or choice.Yes/No, OK/Not OK outcome.


Link them all up to to show the order in Link them all up to to show the order in which the process flows.which the process flows.

Customer

Outcome

Satisfaction

TriggeringEvent


Decision, judgement, inspection or check point.Yes/No, OK/Not OK outcome.


This is a process map!This is a process map!

Customer

Outcome

Satisfaction

TriggeringEvent


Decision, judgement, inspection or check point.Yes/No, OK/Not OK outcome.


Process Definition WorksheetProcess Definition Worksheet Objective : To specifically define the scope of the process being studiedObjective : To specifically define the scope of the process being studied

Process Name:

The Process Starts with:

The Process Ends with:

The Process includes:

The Process excludes:

Connecting Process:


The SIPOC ModelThe SIPOC ModelSuppliers - Inputs - Process - Outputs - CustomersSuppliers - Inputs - Process - Outputs - Customers

Suppliers CustomerBusiness or Work Process

Inputs Outputs

Supplier 1Supplier 2Supplier 3

Input 1Input 2Input 3

Process Step 1Process Step 2Process Step 3Process Step 4Process Step ...

...............

Output 1Output 2Output 3

Customer 1Customer 2Customer 3


DateSIPOC Analysis WorksheetProcess Name Page of

Suppliers Inputs Outputs CustomersProcess Steps


DateSIPOC Analysis WorksheetProcess Name Page of

Suppliers Inputs Outputs CustomersProcess Steps

Purchase RequisitionCustomer Dept. Receives purchase req.

Reviews for completeness

Time stamps

Assigns to buyer

Complete Purchase

Requisition

Buyer

Procurement Process


Process Block DiagrammingProcess Block Diagramming(Process Blocking)(Process Blocking)

Block diagramming a process provides an easy way to construct a "rough cut" view of the process;

Block diagramming identifies the major "chunks" in the process and which functions are involved;

Block diagramming may provide a suitable level of detail for a high level analysis of the process in many cases.


Example of Process Block DiagramExample of Process Block Diagram

Raise

Order

Data Processing

Receive

Rejection

process

Purchasing Process

Dispatch

& Delivery

Start

Install &

Commission

Finish

Account

Payable

Credit Check

Warehouse

processOfficial

Order

picking


Top-Down Process MapTop-Down Process Map

Order Receival

Credit Check

Product Sourcing

Technician Allocation

Etc.

Receive fax Raise formal

order documentation

Data process into system

Send to Credit section

Preliminary customer checks

Obtain credit details from Bank

Make credit decision.

Receive order details

Determine stock availability

Issue to stock picker

Pick stock Take to Despatch

dock Pass order onto

Technical

Receive order details

Identify schedule date

Book into scheduling system

Allocate technician


Process Mapping SymbolsProcess Mapping SymbolsSymbol Name Brief Definition

Operation orprocess step

Decision Point

DocumentGenerated

ContinuationPoint

Input/OutputBlock

Flow lines

Depending on the level of detail being developed, can be used to denote anything from a simple task, major activity or a whole sub-processes.

Used to indicate the process is continued elsewhere on the flow diagram or on another sheet.

Point at which a form or report is generated by the process.

Point where a decision must be made before any further action can be taken.

Optionally used to describe an input or output from a processing block.

Use to connect all blocks to display the sequence in which operations are performed.

Termination point

Used to indicate the start and end of a process.


Start

Change order

Yes

No

An extended oval shape is used to indicate the start or finish of a process.

A numbered circle represents a continuation point.Cook's part of process continued page 2.

1

A rectangle represents a processing step

A line with an arrowhead indicates flow and direction of the process

A diamond shape represents adecision point

Sample Process Map: Taking a Customer OrderSample Process Map: Taking a Customer Order

1Continues onto the Cook’s part of the process.

Greet customer

Take customer's order

Repeat order to customer

Customer confirms

Confirm order on terminal

Verbally announce to kitchen

1

Note:Some computer based flow charting packages useto indicate a continuation point on another page, andto indicate a continuation point on the same page.

1


Process Deployment ChartProcess Deployment Chart Re-draw the Process Map laying out each of the process segments in "bands" or

"streams" which correspond to the part of the process performed by each functional position in the process;

Identifies how the process is deployed through the functional organisational structure – add functions in the order that they are first “touched” by the process;

Can highlight process steps performed within functions that may not be apparent from initial process map. Good at highlighting parallel processes;

Identifies hand-overs and inefficient "zig-zagging" in the process; Rule of Thumb: Changes that reduce the amount of zig-zagging usually result in

improved performance.


Process Deployment ChartProcess Deployment Chart

Customer Sales Credit Dispatch ServiceClerk Data Proc. Technical Bank


Process Deployment Chart Variation: Service System MapProcess Deployment Chart Variation: Service System MapThe Line of Visibility ApproachThe Line of Visibility Approach

Customer

Front Line Assessm't Stamp Settlem'tManager Valuation Document'n Broker

Line of VisibilityCustomer Interface Direct Front Line support

In-Direct Front Line support


A Service System MapA Service System MapThe Line of Visibility ApproachThe Line of Visibility Approach

Customer

Front Line Assessm't Stamp Settlem'tManager Valuation Document'n Broker

Could be moved to a back office operationFront office


Process Complexity AnalysisProcess Complexity Analysis


ComplexityComplexity Concept first put forward by the Hewlett-Packard Company; Complexity is defined as being those extra process steps that are

required to deal with external errors (errors generated by factors outside the process) and to recover from internal errors (errors generated by the process).

Classified all work into two categories: Real Work Complexity


Identifying ComplexityIdentifying Complexity

To identify complexity, ask the question:"If the process were running perfectly, would this activity be performed ?"

YES = Real Work

NO = Complexity


Two Views of Work TimeTwo Views of Work Time

Time Unavailable for Work

Time Available for Real Work

Time Unavailablefor Work

Complexity -Internal Errors

Complexity - External Errors

Time Available for Real Work

Conventional View

Complexity View


Indicators of High ComplexityIndicators of High Complexity Lots of work-in-progress materials. Many shelves and interim storage facilities to hold materials. Many people walking from place to place, standing in line waiting for something, standing idle. Work areas that are in disarray. Dusty boxes on floors, bookcases full of dusty binders, desks and

walls covered in little scraps of paper serving as reminder notes. People who can give only brief and vague explanations of what they are working on and why it

is important. Humorous signs taped to the walls that say things like "You want it when ? Ha ! Ha !" or " A

clean desk is a sign of a sick mind" In office areas, piles of processed and unprocessed documents, stored in the work area. Supervisors and managers pacing around the area trying to find out what's going on, ascertain

who made a critical mistake and expediting late orders.


Indicators of Low ComplexityIndicators of Low Complexity Small amount of work-in-progress. Few shelves and temporary storage areas to hold

work. Few people walking around. Most people working at a steady, relaxed pace. No one

waiting in line at copy machines, office supplies stores etc. Work areas that are neat. Everything in a department has a place and a use. People

using time management systems instead of scraps of paper. Desk tops containing only what the person is working on at the time.

People on shop floor or office areas can give complete descriptions of what they do, why they do it, who their customers are, and what's important to those customers.

The most common item displayed on department walls are monthly performance graphs, daily control charts, pareto charts of problems.

In office areas all documents are received, processed and filed. In-baskets are clean. Supervisors and managers who are relaxed, walking around the area talking with

employees, asking them what they are working on, and looking for ways to make their employees' jobs easier and more satisfying.


A Simple Retail Purchasing ProcessA Simple Retail Purchasing ProcessThe Manager's ViewThe Manager's View

Select goodsfrom shelf

Read price tag

Enter data in register

Announce TotalOffer to Pay

Make change

Wrap GoodsLeave

Customer Clerk


The Reality of ComplexityThe Reality of Complexitycaused by Error !caused by Error !

Customer Clerk Supervisor Store person

Pick Goods from shelfIs

Price Tag OK ?

Look up Printed list

Explain Difference

Accept ?

Exit Angry !

GoodsDamaged ?

Discuss with supervisor

Inquire if available from storeroom

Discuss situation

Bring to ClerkFetch and

Notify SupervisorApologise to Customer

Explain to Customer Available ?

No

Yes

No

Yes

No

Yes

No

Wrap etc.

Yes

?

Etc., Etc. ...


A “generic” process mapA “generic” process map

Customer

Show the task structure and underlying logic;

Would be useful to link a process to resources and costs;

Process Flow Analysis (PFA) is a technique that allows us to do this. (note: PFA is also referred to as Value Stream Analysis by some).


Process Flow AnalysisProcess Flow Analysis(Also referred to as Value Stream Analysis)(Also referred to as Value Stream Analysis)

Delay

Transportation

Storage Storing materials or documents in a protected storage area, requiring authorisation for removal.

Moving of an object or document from one physical location or work station to another.

Temporary storage between operations or waiting for some event which will allow work to continue.

Operation A task or activity which results in intentional changes to one or more characteristics.

InspectionAn examination to determine quality or quantity.

Combined Combining two symbols indicates simultaneous activities eg. inspection is conducted at the same time as the operation.

Symbol Name Brief Definition


D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

Process Flow Analysis ChartProcess Name Page of

Date

D

Ope

rati

on

Insp

ecti

onT

rans

port

Del

ay

Sto

reDescriptionEstimated

TimeQuantity Distance Notes


D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

Process Flow Analysis Chart

Process Name Page of

Date

D

Ope

rati

on

Insp

ecti

onT

rans

port

Del

ay

Sto

reDescriptionEstimated

TimeQuantity Distance

Notes

Internal Mail Distribution Process

1. Mail sitting in mail room

2. Date Stamp all envelopes

3. Determine addressee

4. Sort in bundles by department

5. Place in out-trays and wait for pick-up

6. Internal Mail pick-up and delivery

7. Placed in department secretary in tray

8. etc., etc. ....

30 min30 min

10 min

2 hrs

15 min

15 min

300

300

300

15

15

15

1

100m Average distance of all depts.

Delivered 8:00am

One bundle /Dept.

1 hr


Using PFA with a Process MapUsing PFA with a Process MapStream A: Dominant flow through the process

Stream B: Secondary flow

Stream C: Secondary flow

Secondary flows are caused by: Variations required to the

dominant process to handle different products or variants of the main product through the process;

Extra steps required to deal with errors and mistakes in the dominant flow e.g. rework and correction activities.


Quantifying the process by using PFAQuantifying the process by using PFA

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D



Date

D

Ope

ratio

nIn

spec

tion

Tra

nspo

rtD

elay

Stor

eDescriptionEstimated


Notes









8. etc., etc. ....

30 min30 min10 min

2 hrs

15 min

15 min

1 hr 300

300

300

15

15

15

1


Delivered 8:00am

One bundle /Dept.

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D



Date

D

Ope

ratio

nIn

spec

tion

Tra

nspo

rtD

elay

Stor



Notes









8. etc., etc. ....

30 min30 min10 min

2 hrs

15 min

15 min

1 hr 300

300

300

15

15

15

1


Delivered 8:00am

One bundle /Dept.

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D



Date

D

Ope

ratio

nIn

spec

tion

Tra

nspo

rtD

elay

Stor



Notes









8. etc., etc. ....

30 min30 min10 min

2 hrs

15 min

15 min

1 hr 300

300

300

15

15

15

1


Delivered 8:00am

One bundle /Dept.

Stream A: Dominant flow through the process

Stream B: Secondary flow

Stream C: Secondary flow

Volume of product or transactions going through stream A (Total Volume)X Time = Hours of Work Generated by the work flow.

%

%

Volume X Time through B

Volume X Time through C


Quantifying the process by using PFAQuantifying the process by using PFA

Apply a volume to the dominant flow and weighted volumes to the secondary flows and calculate the workload generated;

From the workload generated, calculate the number of Full Time Equivalents required (FTE); Apply accepted conversion factors from work standards;

Convert to number of people required to resource the process by taking into account hours worked and rostering arrangements.


Using PFAUsing PFA

The full PFA for a process can be set up as a spreadsheet model;

This can then be used to test the viability of various opportunities for improvement when selecting what to focus on;

Can be used to model proposed changes and simulate the impact on the organisation.

Review Spreadsheet PFA Model


Value-Added and Non-Value Added AnalysisValue-Added and Non-Value Added Analysis

Process steps can be categorised as being value added or non-value added;

Value-added steps are steps considered essential to the process; Value-added process steps pass the following three tests:

Is the step related to doing it right the first time ? Does the step get you one step closer to delivering the product or

service to the customer ? Would the customer be willing to pay for the step ?


Non-Value Added WorkNon-Value Added Work

Internal failure: steps related to correcting in-process failures due to errors in prior activities in the process;

External failure: steps related to fixing errors in the product or service the customer has found and re-addressed to you;

Set-up: Steps that prepare work for subsequent activity; Control/Accuracy: Steps that relate to internal process review and monitoring,

appraisal steps in COQ terminology; Moves and transport: Steps related to the physical transports that occur between

activities in a process; Delay or wait: Time spent waiting for the next processing step


Using PFA for Value Analysis Using PFA for Value Analysis

Value Added Non - Value Added First pass through the process

If done as rework, internal or external failure

All Non - Value Added


Tollgate Review: Define PhaseTollgate Review: Define Phase


Toll Gate Review: DefineToll Gate Review: Define

Project has been confirmed as a valid improvement priority and is supported by management. A business case has been prepared, showing the potential business impact of this project in

financial terms. A problem statement has been prepared and agreed. Objectives defining the results we are expecting from this project have been stated in the form

of measurable targets. A full Project Team Charter has been prepared including a preliminary plan/schedule. The charter has been reviewed with the project sponsor and their support has been confirmed. The primary customer and their key requirements have been identified. The process concerned has been documented in the form of a process map.


Conclusion of Define Stage ModuleConclusion of Define Stage Module

5. the dmaic: define stage detail (1,002 k ppt)

Documents

effective team

team processes

project team charter

team project charter

team fun

team leader

team members output

relevant process