1

LSSG Green Belt Training

Control: How do we make it happen at a controlled speed?

2

DMAIC Six Sigma - Control

Implement Controls Determine process capability,

implement controls to ensure continuance; assign process ownership and manage organizational change

Standardize Create standard operating

procedures; create and implement training programs; document project

Evaluate Benefit Calculate the profit of the project

and identify opportunities for replication

Measure

Control

Analyze

Improve

Define

3

Agenda for Control

1. Standardization

2. Financial Benefit

3. Change Management

4. Process Monitoring

5. Process Capability

6. Response Plan

7. Closure

4

Standardization and Documentation

Role of SOP

To create uniformity, consistency and reliability, to reduce errors; to support training needs

Steps necessary to create SOPs:

Purpose and frequency of task Who will perform the task? The steps involved Corrective actions if performed incorrectly Timing for updates and revisions

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Benefits of Standard Work

Allows for Monitoring and Control

Reduces Process Variation

Provides Input for ISO9000 Certification Document what you do, and then

do what you have documented!

Helps Maintain the Gains from Improvement Projects

SOP Link: osg.ivdgl.org/.../ Operations/CriticalUpdateSOP

6

Estimating Financial Benefits

Benefit Estimation At start and end Decide computation

method early Conservative and

defendable Time value of money

Benefits Issues Projection for 1 to 2

years only Hard and soft benefits

Certified by Finance Dept.

Treat this subject with great care!

-15

-10

-5

0

5

10

15

20

25

30

35

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35

Months

Low Estimate

High Estimate

Cash Flow

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Estimating Benefits

Case Study #1: Improvement, or Not?!

Prior to the implementation of an improvement project, the mean number of defects was 80 per week, and the range of defects was 40 to 120. The improvement project yielded a 25% improvement in the defect rate, but no change in the range.

The team reported the improvement to management. However, no change was observed by the customer.

Why Not?

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Estimating Benefits

Case Study #2: Estimating Future Benefits

An improvement project yielded an estimated $100,000 per year. The team reported a project benefit of $500,000, as they believed that the project’s benefit would last for five years.

What is your opinion?

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Estimating Benefits

Case Study #3: Estimating Future Benefits

An improvement project yielded an estimated $50,000 per year, based on a calculation that one less person would be needed for a task, once the new improved process is implemented. The CFO said that she would only agree to certify this benefit if the affected department would reduce their salary budget by $50,000 for the next year.

What is your opinion?

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Change Management

Employee Skill

Motivation

Process Ownership

User Acceptance

Process Needs

Implementation Plan

Management Signoff

Rollout

Validate Process

Others Training Materials and Plans

New Equipment

Space Requirements/Layout Changes

“People Side of Change” Presentation: http://www.purdue.edu/hr/ppt/APSACHadley.ppt#1

CURRENT STATE

Preferred state

Resistance to change

TRANSITION STATE

Anxiety and stress

Significant dislike

FUTURE STATE

Unknown

Undesired

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Monitor

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

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Choosing the Right Control Chart

Data Type

AttributeContinuous

Count

P-Chart(% Defectives)

U-Chart (# of Defects/Unit,

or DPU)

I-MR (or X-MR) Chart (n = 1)

X Bar-R Chart(n = 2 to 5)

X Bar-S Chart(n>6)

Note: The NP Chart and C Chart are alternatives to the P and U Charts, respectively, but can only be used for constant sample sizes.

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Rev # Date Change Log – Describe Revisions By Apppr

-Name-Numerator &

Denominator- Specification

-Name-Numerator &

Denominator or Description

Indicator Chart Type

“Physical” Item to Check

When to Check

Who Performs Check

Recovery Action

-Indicator Formula

-Procedures

-Comments

Y1 = % of Itineraries with a Policy Violation

Y2 = % of Inaccurate Itineraries

Y3 = % of Expense Payments not paid within 15 days of Post

X1 = % of Lowest Airfare

X2 = % of 7 day advance tickets

X3 = Count of Ticket Problems

X4 = Time from Post to Submit

X5 = Time in Days from Submit to Approve

X6 = Time in Days from Approve to Pay (Client)

X7 = Time in Days from Post to Pay (AMEX)

P chart

P chart

U chart

I-MR

I-MR

I-MR

I-MR

Travel Agency Report

Travel Agency Report

Travel AgencyReport

Activity Report

Activity Report

Activity Report

Activity Report

Weekly

Weekly

Weekly

Weekly

Weekly

Weekly

Weekly

Connie

Connie

Connie

Tim

Tim

Tim

Tim

Consult with Group

Consult with Group

Consult with Travel Agency

Consult with Group

Consult with Group

P&CMS process may need to be measured.

Process MapOutcome

Indicators (Ys)

Upstream Indicators

(Xs)Capturing Data

Misc. Information

Process Name:Travel Management

Primary Customer of Process: Business Travelers

Customer’s CTQs:

Accuracy

Timeliness

Outcome Indicators (Ys):% of Itineraries with a Policy Violation

% of Inaccurate Itineraries

% of Expenses not Reimbursed within 15 days of post

Process Management Control System

Position

Step/Time

Traveler

Travel Agent

No

Yes

Yes

No

Yes

No

Yes

No

Yes

No

Yes

18Receive TravelRequirements

19QC trip

1Travel Need

10Select Travel

Planner

44Send Email of

Itinerary

20Book Airfare

8Call Travel #

40Problem

Acknowledgedwith Traveler

26Select and

Confirm Hotel

a

Problem w/ Itinerary?

22View Preferred

Hotels

FlightRequired?

2Use On-line

tool

14Lowest Airfare

Selected?

15Enter

ReasonCode

41Problem

resolved within72 hrs?

29Select Hertz or

National

32Submit and

ConfirmItinerary

a

42Client Notified

ProblemResolved

A

b

b

Arr

an

ge

Tra

vel

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Response Plan

Mistake Proof Identify Gaps Develop Action Plans Implement Dashboard Triggers Monitor Employee Suggestions Foster Continuous Improvement

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Project Closure

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