Define Phase Jimmie Carr OPERMGT 380 Boise State University.
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Transcript of Define Phase Jimmie Carr OPERMGT 380 Boise State University.
Define PhaseDefine Phase
Jimmie CarrJimmie Carr
OPERMGT 380OPERMGT 380
Boise State UniversityBoise State University
OverviewOverview
Define Phase definedDefine Phase definedDefine TollgatesDefine TollgatesCompanies using the Define PhaseCompanies using the Define PhaseAn exercise opportunityAn exercise opportunitySummarySummary
Define Phase DefinedDefine Phase Defined
Project charter is createdProject charter is createdVoice of the Customer (VOC)Voice of the Customer (VOC)High-Level Map of current process High-Level Map of current process
is createdis createdProject Team assembledProject Team assembled
Project Charter IncludesProject Charter Includes
The business caseThe business caseThe problem statementThe problem statementProject scopeProject scopeGoals statementGoals statementMilestonesMilestonesRoles and responsibilities of the Roles and responsibilities of the
project teamproject team
Project Charter Do’sProject Charter Do’s
Make problem statement specificMake problem statement specificFocus on observable symptomsFocus on observable symptomsUse Charter to set direction, goalsUse Charter to set direction, goalsAddress project questions earlyAddress project questions early
Project Charter Don’tsProject Charter Don’ts
Assign blame in problem statementAssign blame in problem statementSet non-obtainable goalsSet non-obtainable goalsMake the charter wordyMake the charter wordy
Business CaseBusiness Case
Given to the team by the Leadership Given to the team by the Leadership CouncilCouncil
Gives a broad definition of the issueGives a broad definition of the issueGives rationale why this project is a Gives rationale why this project is a
key business prioritykey business priorityCompelling reason to commit Compelling reason to commit
resourcesresources
Problem StatementProblem Statement
Concise statement of the problemConcise statement of the problemUnder what circumstances does Under what circumstances does
problem occurproblem occurExtent of problemExtent of problem Impact of problemImpact of problemOpportunity if problem is Opportunity if problem is
eliminatedeliminated
Problem Statement FormProblem Statement Form
Problem Statement
Expected Benefits Target Stretch
Total Savings $ $
Milestones Start Date Plan Actual
DefineMeasureAnalyzeImproveControl
Team Percent of TimeChampionTeam LeaderMaster Black BeltTeam Members Role
Project ScopeProject Scope
An important element in the An important element in the chartercharter
Sets boundaries on what’s Sets boundaries on what’s included/excludedincluded/excluded
Seek a balanceSeek a balanceViewed as a contract to avoid Viewed as a contract to avoid
scope creepscope creep
Goal StatementGoal Statement
SpecificSpecificMeasurableMeasurableAttainableAttainableRelevantRelevantTime boundTime bound
MilestonesMilestones
Indicates when and where the Indicates when and where the team should be in the processteam should be in the process
Set limits for other steps in DMAIC Set limits for other steps in DMAIC processprocess
Voice of the Customer Voice of the Customer (VOC)(VOC)
Recipient of product/service Recipient of product/service targeted for improvementtargeted for improvement
Delivery timeDelivery timeAccuracyAccuracy
High-Level Process MapHigh-Level Process Map
Name the processName the processEstablish start and stop pointsEstablish start and stop pointsDetermine the outputDetermine the outputDetermine the customersDetermine the customersDetermine the supplierDetermine the supplierDetermine the inputDetermine the inputAgree on five to seven high level stepsAgree on five to seven high level steps
Symbols Used to Create A Symbols Used to Create A Process MapProcess Map
Start/stop of a Process Start/stop of a Process Decision point Decision point Step in the Process Step in the Process Direction in the Process Direction in the Process
Project TeamProject Team
Champion (process owner)Champion (process owner)
-strategically guides team -strategically guides team
-assist in picking the team-assist in picking the teamTeam Leader-Black BeltTeam Leader-Black BeltTeam MembersTeam MembersMaster Black BeltMaster Black Belt
TollgatesTollgates
Steps of the Define PhaseSteps of the Define PhaseSimilar to being on a turnpikeSimilar to being on a turnpikeStop to pay tollStop to pay tollProceed to the next tollgateProceed to the next tollgateContinue on the highway of qualityContinue on the highway of quality Improve sigma performanceImprove sigma performance
General Electric (GE)General Electric (GE)
2000 was a record breaking year2000 was a record breaking yearRevenue rose 16% to $129.9 Revenue rose 16% to $129.9
billion-a recordbillion-a record75% of GE’s top businesses posted 75% of GE’s top businesses posted
double-digit earning increasesdouble-digit earning increasesSix Sigma turned the company’s Six Sigma turned the company’s
focus from inside to outsidefocus from inside to outside
ITTITT
Uses Value Based Six Sigma (VBSS)Uses Value Based Six Sigma (VBSS)2001-$135 million in cost savings2001-$135 million in cost savingsLinked VBSS to the company’s Linked VBSS to the company’s
strategic planstrategic planGo for quick winsGo for quick winsMatch project and resourcesMatch project and resources
Define Phase Do’sDefine Phase Do’s
Give equal attention to Service and Give equal attention to Service and Output requirementsOutput requirements
Create clear goals and objectivesCreate clear goals and objectivesMeasurable requirements are Measurable requirements are
essential to understanding your essential to understanding your customerscustomers
Define Phase Don’tsDefine Phase Don’ts
Fail to measure your performance Fail to measure your performance against customer requirementsagainst customer requirements
Close your mind to new informationClose your mind to new informationMake new requirements your Make new requirements your
standard operating procedures standard operating procedures (SOP)(SOP)
Training ExerciseTraining Exercise
Break down into 3-5 people per group to Break down into 3-5 people per group to determine there are issues within your determine there are issues within your organization that you could use the Define Phase organization that you could use the Define Phase on.on.
How long did the problem exist?How long did the problem exist? How did the problem begin?How did the problem begin? Will we need a project team to work on the Will we need a project team to work on the
problem?problem? What will be the savings if a solution is found?What will be the savings if a solution is found? What will be the damage if a solution isn’t found?What will be the damage if a solution isn’t found?
SummarySummary
Define Phase is structuredDefine Phase is structuredEfficient and effective way of Efficient and effective way of
achieving a difficult undertakingachieving a difficult undertakingHigher consistency of outcomesHigher consistency of outcomesProject results as soundProject results as sound
Applying the ChangeApplying the Change
The most general lesson to be learned from the The most general lesson to be learned from the more successful cases is that the change process more successful cases is that the change process goes through a series of phases that, in total, goes through a series of phases that, in total, usually require a considerable length of time. usually require a considerable length of time. Skipping steps creates only the illusion of speed Skipping steps creates only the illusion of speed and never produces a satisfying result. …But just and never produces a satisfying result. …But just as a relatively simple vision is needed to guide as a relatively simple vision is needed to guide people through a major change, so a vision of people through a major change, so a vision of the change process can reduce the error rate. the change process can reduce the error rate. And fewer errors can spell the difference And fewer errors can spell the difference between success and failure.between success and failure.
-------James Kotter, “Why Transformation Efforts Fail,” Harvard -------James Kotter, “Why Transformation Efforts Fail,” Harvard Business Review, March-April, 1995Business Review, March-April, 1995
BibliographyBibliography Pande, Peter S., Neuman, Robert P., and Cavanagh, Roland R. Pande, Peter S., Neuman, Robert P., and Cavanagh, Roland R. The The
Six Six
Sigma Way, Team FieldbookSigma Way, Team Fieldbook, 2002., 2002.
Pande, Peter S., Neuman, Robert P., and Cavanagh, Roland R. Pande, Peter S., Neuman, Robert P., and Cavanagh, Roland R. The The SixSix
Sigma Way, Sigma Way, 2000. 2000.
Ehrlich, Betsi Harris, Ehrlich, Betsi Harris, Transactional Six Sigma and Loan Servicing; Transactional Six Sigma and Loan Servicing;
Leveraging Manufacturing Concepts to Achieve World-Class Leveraging Manufacturing Concepts to Achieve World-Class Service, Service,
1998.1998.
Eckes, George, Eckes, George, Six Sigma for EveryoneSix Sigma for Everyone, 2003, 2003
Bibliography (cont)Bibliography (cont)
Welch, John, Welch, John, GE Annual 2000 LetterGE Annual 2000 Letter
McClenahen, John, McClenahen, John, Industry Week,Publication 4/1/02Industry Week,Publication 4/1/02