lean six sigma executive overview (case study) templates
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Lean six sigma executive overview (case study) templatesTRANSCRIPT
Lean Six Sigma Group
Lean Six Sigma Case Study Executive Overview
International Standards for Lean Six Sigma (ISLSS)
0 10 20 30 40
LSL USL
USL
Target
LSL
Mean
Sample N
StDev (ST)
StDev (LT)
Cp
CPU
CPL
Cpk
Cpm
Pp
PPU
PPL
Ppk
PPM < LSL
PPM > USL
PPM Total
PPM < LSL
PPM > USL
PPM Total
PPM < LSL
PPM > USL
PPM Total
20.0000
*
0.0000
14.7929
169
3.38716
4.61648
0.98
0.51
1.46
0.51
*
0.72
0.38
1.07
0.38
0.00
130177.51
130177.51
6.29
62109.19
62115.48
676.79
129673.00
130349.79
Process Data
Potential (ST) Capability
Overall (LT) Capability Observed Performance Expected ST Performance Expected LT Performance
STLT
-100 0 100 200 300 400
LSLUSL
Process Capability Analysis for Average Spee
USL
Target
LSL
Mean
Sample N
StDev (ST)
StDev (LT)
Cp
CPU
CPL
Cpk
Cpm
Pp
PPU
PPL
Ppk
PPM < LSL
PPM > USL
PPM Total
PPM < LSL
PPM > USL
PPM Total
PPM < LSL
PPM > USL
PPM Total
20.0000
*
0.0000
71.4444
117
38.9880
50.6272
0.09
-0.44
0.61
-0.44
*
0.07
-0.34
0.47
-0.34
0.00
948717.95
948717.95
33440.39
906498.25
939938.64
79094.94
845218.98
924313.92
Process Data
Potential (ST) Capability
Overall (LT) Capability Observed Performance Expected ST Performance Expected LT Performance
STLT
Business Problem & Impact:Average speed to answer (ASA) was 1 minute. As call volumes increased 30% with a recent acquisition, end user downtime was costing the company US$500K annually. The target average speed to answer was under 30 seconds.
“Descriptive Project Title”
Results/BenefitsAfter the 3 month project, the customer saved US$150K, or 30%, as a result of reduced end user downtime.
Measure & Analyze:Data Collection: Speed to answer on all calls was measured. The existing process sigma was 2.4.
Root Causes: Nature of problem and time of call were identified as root causes.
Customer Profile: 28,000 Retail Business
Improve & Control:Cross-training on call types was performed and staffing was arranged around peak call times. Metrics are reviewed weekly and posted to an IT dashboard.
Process Capability– Before
Process Capability – After
A Savings of US $150k in 20XX
2International Standards for Lean Six Sigma (ISLSS)
Create Candor in the Workplace with Jack Welch Video by Stanford Graduate School of Business
Project “Storyboard” Example
International Standards for Lean Six Sigma (ISLSS)
Enter Key Slide Take Away (Key Point) Here
How a Passionate Lean Thinking Enterprise is Developed by Gemba Academy
Lean Six Sigma Group
Lean Six Sigma Case Study Backup Slides
International Standards for Lean Six Sigma (ISLSS)
Project Charter
Problem: Describe problem in non-technical terms Statement should explain why project is important; why
working on it is a priorityGoal: 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
Tollgate Review Schedule
Financial Impact
Team
Scope: In-Scope/Out-of-Scope (Process Start/Stop
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, replication opportunities, project iterations)
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 BeltCore Team Role % Contrib. LSS Training Team Member 1 SME XX YB Team Member 2 TM XX GB Team Member 3 SME XX PSExtended Team Team Member 1 BFM XX Not Trained Team Member 2 IT XX Not Trained
Review high-level schedule milestones here: Phase Completions Tollgate Reviews
Tollgate Scheduled Revised CompleteDefine: XX/XX/XX - XX/XX/XXMeasure: XX/XX/XX XX/XX/XX XX/XX/XXAnalyze: XX/XX/XX XX/XX/XX XX/XX/XXImprove: XX/XX/XX XX/XX/XX XX/XX/XXControl: XX/XX/XX XX/XX/XX XX/XX/XX
Enter Key Slide Take Away (Key Point) Here
5International Standards for Lean Six Sigma (ISLSS)
How Hoshin Planning helps Organizations Video by iNexusTV1
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
Root cause: Quick Win #1
Root cause: Quick Win #2
Root cause: Quick Win #3
Observation
Indiv
idual Valu
e
2442171901631361098255281
40
35
30
25
20
_X=29.13
UCL=37.70
LCL=20.56
Observation
Movin
g R
ange
2442171901631361098255281
10.0
7.5
5.0
2.5
0.0
__MR=3.22
UCL=10.53
LCL=0
I-MR Chart of Delivery Time
Detailed process mapping MSA Value Stream Mapping Data Collection Planning Basic Statistics Process Capability Histograms
Time Series Plot Probability Plot Pareto Analysis Operational Def. 5s Pull Control Charts
Enter Key Slide Take Away (Key Point) Here
6
Process Capability Graphical Analysis
Tools UsedRoot Cause / Quick Win
International Standards for Lean Six Sigma (ISLSS)
Gemba Training Video by Gemba Academy
Analyze Overview
Value Add Analysis - Current State
0
20
40
60
80
1 2 3 4 5 6 7 8 9 10Task #
Task T
ime (
seco
nd
s)
CVA Time BVA Time NVA Time
Takt Time = 55
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
C&E Matrix Complexity Cause & Effect Diagram Kaizen/Quick Wins FMEA Control/Impact Chart T-Test Other
Hypothesis Test (ANOVA, 1 or 2 sample t - test, Chi Squared,
Regression, Test of Equal Variance, etc)
Factor (x) Tested
p Value Observations/Conclusion
Example: ANOVA Location 0.030Significant factor - 1 hour driving time from DC to Baltimore office causes ticket cycle time to generally be longer for the Baltimore site
Example: ANOVA Part vs. No Part 0.004Significant factor - on average, calls requiring parts have double the cycle time (22 vs 43 hours)
Example: Chi Squared Department 0.000Significant factor - Department 4 has digitized addition of customer info to ticket and less human intervention, resulting in fewer errors
Example: Pareto Region n/aSouth region accounted for 59% of the defects due to their manual process and distance from the parts warehouse
Describe any other observations about the root cause (x) data
Enter Key Slide Take Away (Key Point) Here
7
Hypothesis Tests Value-Add Analysis
Tools UsedRoot Cause / Effect
International Standards for Lean Six Sigma (ISLSS)
Analyze Tools using SigmaXL Virtual Menus Training Video by SigmaXL Inc.
Vital X (root cause) Proof of CausationPractical Solution (process change
to address X)Operating
Tolerances for XClient IT need to reverify all exit data received from Client HR
Average delay between reception of information from Client HR until it reaches NT Admin or general admin
Eliminate process - Place accountability on Client HR for information placed into new database.
n/a
E-mail vendor's contract with Client
The SLA has a range of 3-5 business days for the completion of a delete request
E-mail vendor instituted new web interface for all add/delete requests, vastly improving request processing time.
1 - 2 days
E-mail vendor's contract with Client
The SLA has a range of 3-5 business days for the completion of a delete request
E-mail vendor instituted new web interface for all add/delete requests, vastly improving request processing time.
1 - 2 days
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
1. ?
2. ?
3. ?
4. ?
5. ?
Improve Summary
Enter Key Slide Take Away (Key Point) Here
8
Solution Selection Criteria Pilot and Implementation Plan
International Standards for Lean Six Sigma (ISLSS)
The 3 Key Secrets of Strategy Execution (Paul Docherty) Video by i-nexus
Control Summary
? ? ? ? ?
Documentation Provide any necessary training
Translation project within/ outside of region/function: Any resulting spin-off projects initiated Any Replication in other locations?
Communication: Communicate project results with customer Communicate results with the business
Baseline Improved
Units ? ?
Defects ? ?
DPMO ? ?
Mean* ? ?
PCE% ? ?
Std. Deviation* ? ?
Sigma (ST) ? ?
Sigma (LT) ? ?
Include text here to explain highlights of the plan to monitor and respond to variation in y’s and x’s
? ? ? ? ?
Summarize benefits to the internal/external customers here.Start tracking benefits from date
of implementation of Improve Phase Improvements.
Enter Key Slide Take Away (Key Point) Here
9
Benefits of ProjectControl/Response Plan Highlights
Sigma Levels/Improvements Communication & Translation
International Standards for Lean Six Sigma (ISLSS)
Standard Work Training Video by Gemba Academy
Business Impact
State financial impact of future project leverage opportunities Separate “hard or Type 1” from “soft Type 2 or 3” dollars
Annual Estimate Replicated Estimate
Revenue Enhancement
• Type 1: ?• Type 2: ?• Type 3: ?
• Type 1: ?• Type 2: ?• Type 3: ?
Expenses Reduction
• Type 1: ?• Type 2: ?• Type 3: ?
• Type 1: ?• Type 2: ?• Type 3: ?
Loss Reduction • Type 1: ?• Type 2: ?• Type 3: ?
• Type 1: ?• Type 2: ?• Type 3: ?
Cost Avoidance • Type 1: ?• Type 2: ?• Type 3: ?
• Type 1: ?• Type 2: ?• Type 3: ?
Total Savings • Type 1: ?• Type 2: ?• Type 3: ?
• Type 1: ?• Type 2: ?• Type 3: ?
10
Enter Key Slide Take Away (Key Point) Here
International Standards for Lean Six Sigma (ISLSS)
Floyd Boilanger CFO Lean Six Sigma Interview National Energy Technology Lab
Business Impact Details
Type 1: Describe the chain of causality that shows how you determined the Direct Cash Flow. Tell the story with cause & effect relationships, on how the proposed change should create the desired financial result ($) in your project.
Show the financial 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 Labor Efficiency savings. Tell the story with cause & effect relationships on how the change should create the desired financial result ($).
Show the 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 (i.e. Cost/Risk Avoidance) 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?
11
Enter Key Slide Take Away (Key Point) Here
International Standards for Lean Six Sigma (ISLSS)
How to Calculate ROI Training Video by Mike Turco
Lessons Learned
1. ?
2. ?
3. ?
4. ?
5. ?
6. ?
7. ?
8. ?
9. ?
10.?
Enter Key Slide Take Away (Key Point) Here
12International Standards for Lean Six Sigma (ISLSS)
Learn the 7 Quality Control Tools Training Video by Gemba Academy
Project Contributors
Steering Team Support Team
Project Ownership Team Deployment Team
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<Name>: <Contribution>
<Name>: <Contribution>
<Name>: <Contribution>
<Name>: <Contribution>
<Name>: <Contribution>
<Name>: <Contribution>
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Enter Key Slide Take Away (Key Point) Here
13International Standards for Lean Six Sigma (ISLSS)
What does a good Leader or Coach do? (Jeff Liker) Video by George Trachilis
Lean Six Sigma Group
Lean Six Sigma Additional Resources
International Standards for Lean Six Sigma (ISLSS)
How to Upgrade to SigmaXL Video by SigmaXL Inc.
Lean Six Sigma Tollgate Template Notes
The Lean Six Sigma Tollgate Templates are: Free and intended as a guide in documenting a Lean Six Sigma
Project. I grant permission for you to modify these templates to meet the specific needs of your process improvement project.
Instructional - a video has been linked to each Template, I selected a mix of videos from Thought Leaders in the Lean Six Sigma Group. I included reference links to all video’s should you want to learn more information. Also included guidelines in the Note’s section of each slide.
Efficient and Effective – Placeholders for Graphic or Video Examples for various tools and methods across each DMAIC Phase.
How to Use These Templates: Collaboratively – use as a guide, reuse templates independently or
across phases as needed, and change the order as needed to best capture the execution of Lean Six Sigma in each phase, and summarize in the final Case Study.
Use as a Communication tool, and document your findings and results.
15
Replace the content of this slide with images or video’s related to your process improvement project
International Standards for Lean Six Sigma (ISLSS)
My name is Steven Bonacorsi, Author of the Lean Six Sigma Tollgate Templates, President of the International Standard for Lean Six Sigma (ISLSS), and Owner of the LinkedIn Lean Six Sigma Group.
Lean Six Sigma Resources
16
Best Wishes in Continuously Improving Your Business Processes – Steven Bonacorsi, Certified Lean Six Sigma Master Black Belt
International Standards for Lean Six Sigma (ISLSS)
Lean Six Sigma Group: https://www.linkedin.com/groups/Lean-Six-Sigma-37987
Lean Six Sigma Subgroups: https://www.linkedin.com/groups?subgroups=&gid=37987
International Standard for Lean Six Sigma (ISLSS): http://www.islss.com
i-nexus: http://www.i-nexus.com
Strategy Execution Community LinkedIn Group https://www.linkedin.com/groups/Strategy-Execution-Community-3725091
SigmaXL: http://www.sigmaxl.com
SigmaXL LinkedIn Group: https://www.linkedin.com/groups/SigmaXL-1812101?gid=1812101
Gemba Academy http://www.gembaacademy.com Lean CEO Group:
Gemba Academy LinkedIn Group: https://www.linkedin.com/groups/Gemba-Academy-1844998?gid=1844998
PEX Network http://www.processexcellencenetwork.com
PEX Network & IQPC - Lean Six Sigma & Process Excellence for Continuous Improvement
Lean Leadership Institute: http://www.LeanLeadership.guru/books.html The Toyota Way Group
Lean Six Sigma Groups(Click Logo’s to Join Group)
17
Each Week, the Lean Six Sigma Group Grows +1,500 New Members; +2,000 Lean Six Sigma Jobs; +200 Discussions; +500 Comments
+280,000 Members – Come Join the ConversationInternational Standards for Lean Six Sigma (ISLSS)
Lean Six Sigma Group
Lean Six Sigma Resource Blogs(Click Logo’s to Follow Blogs)
18
See Notes Section for Links to Lean Six Sigma Group Contributors
International Standards for Lean Six Sigma (ISLSS)
Floyd Boilanger CFO Lean Six Sigma Interview
National Energy Technology Lab
Lean Six Sigma Executive Overview Video References – Set 22
19
Join the Lean Six Sigma Jobs Group: http://www.linkedin.com/groups?gid=2161051
International Standards for Lean Six Sigma (ISLSS)
Create Candor in the Workplace with Jack Welch
Video by Stanford Graduate School of Business
How a Passionate Lean Thinking Enterprise is Developed by Gemba Academy
How Hoshin Planning helps Organizations Video by
iNexusTV1
Gemba Training Video by Gemba Academy
Analyze Tools using SigmaXL Virtual Menus Video by SigmaXL Inc.
The 3 Key Secrets of Strategy Execution (Paul Docherty) Video
by i-nexus
Standard Work Video by Gemba Academy
Lean Six Sigma Executive Overview Video References – Set 23
20
Join the Careers in Operational Excellence Group: http://www.linkedin.com/groups?gid=3723227
International Standards for Lean Six Sigma (ISLSS)
How to Calculate ROI Training Video
by Mike Turco
Learn the 7 Quality Control Tools
Video by Gemba Academy
What does a good Leader or Coach do? (Jeff Liker) Video by
George Trachilis
How to Upgrade to SigmaXL Video by
SigmaXL Inc.