SIPOC Leads to Process Mapping and Project Selection

Often when companies introduce Lean Six Sigma as a way of executing process improvement in its organization, they get excited about all the statistical tools and are enamored with the idea of training Green Belts and Black Belts. An experienced Six Sigma deployment leader will rein-in that enthusiasm and point out that there is much work to be done before candidates are selected for training and statistical software is distributed to the masses.

Companies new to Six Sigma need to build a foundation for repeatable continuous improvement in the organization (infrastructure), as well as an agreed-upon, easily communicated picture of current processes (“as is” state). These are the key elements that give any organization the ability to identify projects that will actually improve processes impacting the customer experience and the ability for change agents to execute improvement in a repeatable and effective fashion.

Capturing the “as is” picture of an organization’s processes is important because it allows a company to be ready for project selection and the introduction of DMAIC (Define, Measure, Analyze, Improve, Control) tools and Six Sigma certification. If done correctly, defining the current state of a company’s processes can help break down strategic focus areas into project ideas. In early Six Sigma deployments, often project scopes are too large, causing excessive project cycle times and loss of internal organizational support. The goal should be ensuring that high-value, well-scoped projects are identified and linked to the company’s strategic objectives. This is the importance of project identification and process mapping: It allows an organization to better understand all the steps, critical inputs and outputs and product and information flows from supplier to customer. Armed with a detailed and shared visual understanding of how work actually occurs, the organization can more easily identify project ideas for improvement.

Once projects are identified, a discussion with key stakeholders can take place to validate initial findings and prioritize projects. This healthy discussion allows individuals to come together and objectively discuss ongoing activities and gaps. Not only will many Lean Six Sigma projects be identified, but other projects that the organization could address will come to light. For the Six Sigma project ideas selected, project charters can be drafted which provide the business case for each project and serves as the guiding framework for improvement efforts. It also is at this point that baseline metrics are established allowing one to track project and process improvement performance.

But it all starts with mapping the current state.

Approach for Process Mapping – SIPOC

The purpose of mapping an organization’s current process is to position the organization to quickly define, document, analyze, prioritize and recommend solutions and follow-up plans to move the company toward its financial and customer-focused goals. Any process mapping activity starts with a simple assessment that can be conducted by interviewing the key stakeholders of the processes. A key activity for this assessment is capturing those critical-to-quality (CTQ) factors of internal clients’ processes and services to their customers. This lays the foundation for collecting data, developing metrics to measure success, and ultimately building value stream maps.

But before a company can leverage the DMAIC process to identify and execute critical process improvement initiatives – let alone do detailed mapping techniques such as value stream mapping – it needs to capture the basics from initial interviews and assessment. This is where one would use a SIPOC diagram; and this initial phase of process mapping is the foundation leveraged throughout the initial phase of a Six Sigma deployment. A SIPOC is a simple process mapping tool used to map the entire chain of events from trigger to delivery of the target process.

SIPOC is an acronym for supplier-input-process-output-customer. A SIPOC diagram helps to identify the process outputs and the customers of those outputs so that the voice of the customer can be captured. When mapping the SIPOC, one can choose the swim lane or unrelated method. The unrelated method requires that the business unit capture all information without directly relating it to a certain process, output, etc. similar to a brainstorming session. This method works best with high-level mapping and is vertical in nature. The swim lane method is best suited for lower detail level mapping. Swim lanes allow the business unit to capture all information directly related to a specific process, output, etc. This method requires more space and several mapping sessions due to the amount of time required to map each process and is horizontal in nature. Basically the documentation used is a combination of matrix, flow chart and summary. And once again includes:

◉ Suppliers: Significant internal/external suppliers to the process.

◉ Inputs: Significant inputs to the process like material, forms, information, etc.

◉ Process: One block representing the entire process.

◉ Outputs: Significant outputs to internal/external customers.

◉ Customers: Significant internal/external customers to the process.

A project team should avoid swim lanes unless if the objective is detailed lower level mapping. This method takes many hours and sessions to complete. Part of the power of the SIPOC is that it is simple to do, but it is full of information that allows the participants in a process to learn together and come to consensus not only about the make-up of the SIPOC itself, but the lessons learned and opportunities as well. Places in the processes for potential improvement can be discussed and prioritized in a non-threatening fashion. By having the business units participate in the session and rank/prioritize opportunities together they tend to be clearer and more descriptive in a shorter period of time. So the SIPOC acts as a dynamic tool to create dialogue and acceptance of a new approach to change in addition to simply capturing the “as is” state.

Building a SIPOC Diagram

When creating a SIPOC diagram, a project team does not necessarily begin at the beginning. The team should more likely start in the middle and ask questions about the process itself (P). The team may label the process with the summaries of the most critical three to six steps. Next is documenting what is delivered to whom (O and C). The team can brainstorm and prioritize the most critical one to three customers and identify, prioritize and align the outputs most significant to those customers. Later the team can verify these initial assumptions with voice of the customer tools from the DMAIC process and/or designate as critical to quality, speed or cost. Finally, the team can identify what input or information is needed to perform that process (I) and who provides that input (S). This brainstorming and prioritization of significant inputs finishes the activities around building a SIPOC. Here are some further concepts about building a SIPOC diagram:

◉ Outputs: Outputs are defined as anything the business unit distributes. Frequency/timing is listed along with the output. Examples of outputs would be reports, ratings, products, documents, etc.

◉ Recipients (customers): A recipient is defined as anyone who receives outputs. It is important to note that the recipient must get the output directly from the business unit and does not necessarily have to be a user of the output. If the output is received from a third party, they are not recipients. Examples of recipients would be a manager, CEO, board of directors, another department.

◉ Triggers: Triggers are anything that starts the business unit’s process. A trigger could be the receipt of a report, a certain day of the month, etc.

◉ Estimated Time: The estimated time is how long it takes to complete process steps – this can be continuous, days, weeks, years, etc.

◉ Pain Points: Pain points are ranked/prioritized and then numbered based on the priority.

In the end, the reason a Lean Six Sigma engagement many times begins with building a SIPOC diagram as a first step in the process mapping exercise is threefold in nature:

1. A SIPOC diagram quickly and easily captures the current or “as is” state of the organization and processes in question.

2. The SIPOC exercise brings associates together in a non-threatening way that builds teamwork and momentum to the cause around culture and learning about Six Sigma.

3. The SIPOC exercise allows the team to review all the processes in a manner in which next steps can be identified, and limited resources assigned during the next phase of the roll-out to those processes with an objectively identified listing of the most critical project opportunities.

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How to overcome the risks of shifting to agile

Once primarily adopted by the tech industry, agile practices are now being embraced by a whole host of industries. It is a huge global movement. Just as digitalisation has touched almost every business, so too has the need to become more agile.

A snapshot of the benefits

Agile practices allow companies to respond to change in a flexible and adaptive way. With ever evolving customer demands agile principles can help businesses avoid and overcome disruption. By mastering continuous change, you will be able to better serve your customers, and meet changing needs quicker than your competitors.

Agile also enables you to promptly respond and react when laws and regulations impact your business. With streamlined processes and operations in place the doors are open for exploration. Your teams have the flexibility to innovate and exceed expectations when seeking solutions.

The risks when transforming

There are a number of key considerations when committing to transform your business. Re-organising and restructuring entire teams and practices is no easy task. Businesses need to assess the risk of such a bold move in order to transform in a way that works.

Employees

For one, businesses overhauling current practices risk losing otherwise loyal and talented employees. They may be reluctant to change or be fearful that their role will cease to exist with new company methodology. These fears are justified, to an extent, as transforming to agile can often mean letting go of employees who are not the right fit. A changing workforce comes with its own perils, but it is a risk that must be overcome when shooting to achieve a more flexible working environment.

Management

Onboarding your team begins with onboarding management. Never has it been more important to lead by example than when undergoing a transformation. When shifting to agile, there is a risk that managers too may struggle with the changes. They may show resistance if they are accustomed to traditional processes. But it is essential that leaders are able to manage effectively in an agile working environment.

Company

One of the biggest risks for a company making the switch to agile methodologies is loss of business. This generally stems from losing sight of the company’s vision and the bumpiness of the transition process. When adjusting to new working practices a company should always keep the business’ direction and goals in mind. Failure to do so is sure to be noticed by customers and clients.

The solution

With careful planning and a phased approach these risks can be overcome. Be clear when outlining the changes to practices. A vision statement is useful to keep aims in focus. Once management is clear on the approach it can be more successfully communicated to teams without the vision becoming diluted.

An alternative is a more hybrid approach. PRINCE2 agile training is designed for those who use traditional management but recognise the advantages of applying agile methods. A host of companies can benefit from the efficiencies of this tailored approach.

The PRINCE2 agile course provides guidance on crafting a balance that works for you. It covers agile principles that can see your business become more productive and responsive to customer needs; as well as practical tips for effective implementation of both PRINCE2 and agile, whilst reducing conflict.

When making the shift to a new, more agile culture you must overcome risks. PRINCE2 Agile can ensure a smooth transition towards improved methodologies and company architecture. By benefitting from the best of both worlds, you can allow your business to flourish.

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Project Selection Options

Six Sigma is accomplished one project at a time. The billions of dollars saved by companies around the world is the cumulative effect of properly selecting and defining business issues that can be assigned to Green Belts and Black Belts for solution. As you may have read last week, a strategic plan includes planning, adequate links between strategy and action, and effective communications. Six Sigma projects are a key action that you can take to reach your organization’s strategic goals.

The intent of this article is to present ideas for identifying issues in your organization and function. These ideas can then be evaluated and formalized into project charters which will allow you to prioritize for implementation.

Project Selection Ideas By Function

Finance/Accounting Six Sigma Project Ideas

◉ Reduce the time it takes to close the accounting books (cycle time)
◉ Improve the forecast accuracy
◉ Control spending over time
◉ Reduce balance sheet risk
◉ Eliminate unstable customers and associated risks
◉ Improve payment processing to vendors/suppliers
◉ Improve Days Sales Outstanding (DSO) — the average time taken by a company to collect payment from its customers
◉ Reduce payroll process cycle time
◉ Improve cash management processes
◉ Improve payment/collection processes
◉ Reduce electronic financial transaction costs
◉ Reduce the cycle time of reconciliation
◉ Reduce the procure to pay cycle
◉ Standardize the accrual and deferral processes

Human Resources Six Sigma Project Ideas

◉ Reduce the time required to hire an employee
◉ Reduce the time to process an insurance claim
◉ Improve employee on-boarding and orientation processes
◉ Reduce expenditures for recruiting firms
◉ Improve timeliness and the value of employee performance reviews
◉ Reduce absenteeism
◉ Improve training efficiency
◉ Improve employee satisfaction
◉ Identify and correct retention issues

From Linda Linteau’s beneficial:

◉ Adds and Deletes of Dependents to Active Employee Health Care Coverage’s
◉ Advanced Degree Equity
◉ Death Notification Processing
◉ Defining Ergonomic Concerns to the Wayne Assembly Plant PVT
◉ Dependent Level Data Reconciliation – HAP
◉ Disability Overpayments – Pension
◉ Disability Plan Overpayments
◉ Disability Re-Engineering Process (DFSS)
◉ Disability Retirees Working Outside of Ford
◉ ECPL Audit Process Improvement Process @ VO and PTO
◉ Effective Recovery of Relocation Costs Upon Voluntary Termination
◉ Elimination of Overpayments to RTW from Disability Leaves
◉ End Stage Renal Disease (ESRD) Eligibility Project
◉ Ford and BCBS Medicare Enrollment
◉ HR Salaried Medical Leave – MEGA project
◉ HRCC Phone Tree Dissatisfaction
◉ HRCC Supervisor Reporting Inefficiencies
◉ Identification and Recovery of Claim Overpayments with Self-Insured Plans
◉ Improve Data Integrity Between Ford and BCBS
◉ Improvement In the ISE Transaction Process
◉ Incentive Compensation
◉ Increasing Generic Drug Substitution Rate
◉ Mail Order Refill Rate for Maintenance Drugs
◉ Medical Department Emergency Response Capability
◉ Medical Leave Volume at Ford Financial
◉ Medicare/BCBSM Coordination of Benefits
◉ OSHA Record Keeping Audit Process
◉ Overpayments to Terminated Salaried Employees
◉ PCE Cost Reduction Project
◉ Pharmaceutical Costs in Ford of Mexico Operations
◉ Post Offer Salaried Medical Exam Process
◉ Reducing Losses of Long Term Advances to ISE’s
◉ Reducing Purchased Vacation Losses to Terminated Employees
◉ Reducing Purchasing Pre-Commitments in Ford HR Organization
◉ Reducing Unauthorized Search Firm Usage for GSR and LL6
◉ Reducing Variation in the Independent Medical Exam Process for Workers Compensation
◉ Reduction in Number of Premium Share Contributions
◉ Reduction of “My Personnel Connections” (MPC) transfer and promotion
◉ Reduction of Production Defects in Recruiting System
◉ Reduction of Salaried EE CDSID and Outlook Exchange Cycle Time
◉ Regulatory Compliance Project
◉ Salaried Discipline Processes
◉ Speed of Response – ER&I Primary Queue
◉ Sponsored Dependent Overpayments
◉ Terminated EE’s Actively Enrolled with One or More Healthcare Providers
◉ Unicare COBRA Cash Pay Project
◉ Urine Drug Test Cycle Time – Salaried
◉ Key Perfomance Indicators for Human Resources

Sales Six Sigma Project Ideas

◉ Improve cross-sell opportunities
◉ Reduce time required to enter sales orders
◉ Reduce errors and rework associated with sales orders
◉ Reduce customer credit worthiness cycle time
◉ Reduce the number of “bad deals” that are processed
◉ Improve the cycle time of the entire sales order to cash process
◉ Increase repeat orders/customers

Shipping/Receiving Six Sigma Project Ideas

◉ Improve on-time delivery of products to customers
◉ Improve on-time delivery of goods to our facility from vendors
◉ Improve documentation accuracy
◉ Reduce line downtime due to shipping/receiving
◉ Improve inventory control/rotation
◉ Improve inspection processes

Information Technology

◉ Reduce network/server/application downtime
◉ Improve process of logging-in to network from remote locations
◉ Improve system reliability/uptime
◉ Standardize computer loads for configuration and support productivity improvement

Product/Service Design Six Sigma Project Ideas

◉ Reduce time required to design a product or service
◉ Reduce errors in design
◉ Reduce production time
◉ Reduce testing time

Call Center Six Sigma Project Ideas

◉ Increase/decrease (depending on your business needs) average talk time
◉ Reduce abandon calls
◉ Improve employee knowledge
◉ Reduce number of times customer is put on hold

Obvious Areas For Improvement

External Defects

◉ Audits (customer, regulatory or internal) discovering non-compliance issues
◉ Any out of specification (customer, regulatory or internal) output
◉ Any inspection process in your organization
◉ Anything you cover for by having a guy in the customer’s plant, office or facility

Internal Defects

◉ Any scrap produced by your processes
◉ Any item reworked in a process (sales contracts, invoices, surgeries, software, etc.)
◉ Any process with high variation in the product output
◉ Any process with high variation in the material consumption
◉ Any process with many “hand-offs” between individuals or business groups

Efficiency/Capacity Issues

◉ Processes producing less than expected
◉ Processes requiring overtime not requested by a customer
◉ Processes requiring cycle times in excess of expectations
◉ Processes with computer/machine downtime
◉ Processes requiring expedited shipping and associated costs due to delayed output production
◉ Any process that has added labor to make the required cycle

Understanding Process Variation

◉ How much variation is there in your incoming materials and/or process parameters and how does this affect your output?
◉ Where do you need the input controlled to always have a good output?
◉ Can you scientifically adjust your process to compensate for changing material, weather, etc.?
◉ Can your Black Belt help your supplier do a project to control the incoming product where you need it?
◉ Does understanding your inputs allow you to produce a good part using less material?

General Six Sigma Project Ideas

◉ Reduce expenses at…
◉ Reduce scrap…
◉ Reduce downtimes… or increase uptimes…
◉ Reduce rework…
◉ Increase throughput at…
◉ Reduce quality defects…

General Guidelines for Project Selection

◉ Any project should have identifiable process inputs and outputs.
◉ A good six sigma project should never have a pre-determined solution.
◉ If you already know the answer, then just go fix it!
◉ For projects that have operator or operator training as an input, focus on ways to reduce operator variation, thereby making your process more robust to different or untrained operators.
◉ All projects need to be approached from the perspective of understanding the variation in process inputs, controlling them, and eliminating the defects.

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The Fundamentals of Cause-and-effect (aka Fishbone) Diagrams

A popular means for identifying the causes of a particular problem, or effect, is the aptly named cause-and-effect diagram. As the completed graphic resembles the bones of a fish, it is also commonly referred to as a “fishbone” diagram (Figure 1).

Figure 1: A Fishbone Diagram

The head of the “fish” is the problem statement, such as “late delivery of product XYZ” (Figure 2). From the head is drawn a straight horizontal line, and all of the “bones” coming off that line represent categories of possible causes. For example, many practitioners use the 6Ms as the categories for the bones:

1. Man (personnel)

2. Machine

3. Methods

4. Materials

5. Measurements

6. Mother Nature (environment)

Figure 2: Filling in the Bones

However, what set of categories is used for a given analysis can be modified to fit the situation.

Team members – which should include subject matter experts and those who work within the processes related to the problem – then brainstorm the causes of the defined problem. For example, a possible cause of late deliveries of product XYZ within the Machine category could be “frequent line stoppages.”

Another approach is to start by brainstorming the possible causes of the problem, and then determining appropriate categories based on what causes were identified. Sticky notes are particularly useful for this method – write one cause per sticky note and they are easily moved for grouping.

A team is likely to find that once they have identified possible causes, they need to delve a little further to find a true root cause. For instance, as shown in Figure 3, each cause coming off the main category “bone” could have one or more lines with sub-causes coming off of it. Application of the 5 Whys at this point can help drive the team to the root cause. Why are there frequent line stoppages? Because the material jams. Why does the material jam? Because it is out of spec. Why is it out of spec? Etc.

Figure 3: Determining the Causes

Teams that start brainstorming within defined categories may find that as they dig further into a cause, the sub- or root cause might better fit into a different category (e.g., out-of-spec material that causes jams more appropriately fits in the Material category, rather than Machine). Not to worry. The categories are generally used to help spur ideas and should not constrain a team with unnecessary boundaries.

While the cause-and-effect diagram has the benefit of being a visual tool that utilizes the input of many team members, its drawback is that it is based on perception and does not constitute a quantitative analysis. For that reason, it is best suited for projects in which hard data is unavailable, or as preliminary work to identify potential causes worthy of data collection and further analysis.

After the diagramming is complete, the improvement team can tackle the root causes – either by immediately addressing the identified cause, or by using the information as input for additional analysis as needed.

Figure 4: Example of Completed Fishbone Diagram – graphic excerpted from “Case Study: Applying Six Sigma to Cricket”

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Goldilocks Dilemma: Getting Project Scope ‘Just Right’

One of the hardest decisions teams and their sponsors make is picking the right scope for a project. Those who choose easy, bite-sized projects often have a high success rate – but the impact sometimes is so small that the general reaction is “so what” or “is that all that Lean Six Sigma can do for us?” On the other hand, those who lean toward projects that are too large do not fare any better. They lose energy and focus as projects drag on for 6, 12 or even 18 months or more. And if they manage to complete the project, the results may be irrelevant to what is happening in the company by that time.

The best course is to aim for a project that can be completed in three to four months and that will generate enough of an impact to contribute towards achieving an important strategic goal. How does a team leader or Sponsor know how much a team can accomplish in three to four months? There is no precise answer, but there are several simple tricks of the trade that can help in making reasonable guesses.

Trick 1: Rate Alternatives on Difficulty

The first trick lives upstream of the project, in the executive suite where projects are born and prioritized. During the project identification process, it is very important for the executive team to prioritize the projects according to both their impact and their difficulty. Impact is related to the organization’s strategic goals, but difficulty is, in part, related to how long the project can be expected to complete.

For example, in order to better meet the strategic goal of “improved customer service,” one bank wanted to speed up its loan processing time. The team considered three possible goals:

Option 1: Cut time by 20 percent
Option 2: Cut time by 50 percent
Option 3: Cut time by 70 percent

Although Option 1 could definitely be done in less than three months making it a relatively low-effort project, the executive team was worried that the improvement would not be great enough to address customer complaints and the strategic objective. Option 3 would definitely be noticed by customers, and definitely address the strategic objective, but the executive team was not sure that the bank had the improvement skills yet to get it done in a reasonable time and that perhaps brand new technologies would be required. Therefore Option 3 was rated high on impact but also high on difficulty.

The project goal adopted was Option 2. The executive team knew from experience that there were a lot of process problems that could probably be addressed quickly, and thought that cutting the process time in half would definitely be noticed by customers and improve customer service.

Trick 2: Use In-and-Out-of-Scope Tool

Sometimes a situation is so complex that there are many directions a company could pursue that would serve a particular goal. One way to deal with that situation is to use what is called the in-and-out-of-scope tool. This tool can be used by the executive team that is defining a project or a project team that wants to clarify its understanding of the assignment (with the proviso that the team’s decisions are checked with its advisor or sponsor).

The steps in creating an in-and-out-of-scope diagram are simple:

1. Team members individually brainstorm elements of the project (any thing is fair game at this stage) and write their ideas on self-stick notes.

2. The team leaders draws a circle on a flip chart to indicate the project boundaries. (Often the drawing is a bull’s-eye to allow the team to make decisions about the relative importance of each factor to a strategic goal.)

3. Team members place their notes either inside or outside the circle’s boundaries to show whether they think the element is within the project’s scope or not. If using the bull’s-eye format, the closer the factor relates to achieving a strategic goal, the closer to the center the note is placed, as in the figure below.

4. Team members discuss and come to agreement as a group.

Scoping with a Bull's-eye

Based on this exercise, an executive team decided that it would charter a project focused primarily on an overnight check depositing service (Service M) provided to large businesses at two locations (Sites B and C). The goals would focus on improving speed while decreasing errors. If necessary, the team also could look at Service N (a follow-on processes) and go to Site A as well. What the team should not concern itself with at this time were all other services – any small business customers, any other locations and the cost of providing the service.

Trick 3: Think Multigenerational

Another way to help team members settle on a project goal that is doable within three to four months is to designate more challenging ideas for future projects. Documenting these options helps a team:

◉ Make measurable progress quickly without having to abandon larger issues.

◉ Be confident that these larger issues will be addressed in the future.

An example of multigenerational project plan is shown in the table below.

Multigenerational Auto Loan Process

	Generation 1	Generation 2	Generation 3
Vision	> Provide consistent solutions and responses to the customer > Reduce customer complaints by 85%	> Best-in-class customer service > Increase revenues by 35%	> Industry leader in auto loan policies
Process Generation	> Standardize auto loan application procedures across all locations	> Introduce “direct-to-customer” marketing concept	> Integrate auto loan policies with other consumer offerings > Implement instantaneous loan approval process
Platforms and Technology	> Update auto loan divisions’ hardware and software to current standards across all locations	> Centralize rating database for all locations > Web-based loan application processing platform	> Automated policy fulfillment process

For this auto loan process, the initial project (Generation 1) would focus on consistency and standardization. Generation 2 would target improving from the solid baseline established in Generation 1 to achieve world-class service levels, which would require the development of some new supporting processes. From there, the bank could then strive for even more innovative ways to meet customer needs (Generation 3).

To create a multigenerational project plan, identify as many aspects of the problem as possible (through brainstorming and/or by capturing ideas surfaced during a project). Decide which issues must be addressed right away and can be done within three months or so (the first generation of the project) and which need to be deferred to a later generation project. For example:

◉ The goal is to reduce billing errors for all customers. The first generation will deal with problems with the top 20 percent of customers.

◉ This project will streamline the process and reduce the number of errors. The next phase will be to implement an automated information system.

As the team’s work progresses, new ideas can be added to future generations of the process rather than increasing the project completion time and delaying value realization for the first generation scope.

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Case Study: Meeting Customers’ Welding Flux Demands

Submerged arc welding (SAW) flux has many applications in the fabrication of oil, gas and water pipelines; gas cylinders; ship building; and surfacing of worn-out mining and material handling equipment. The following case study tracks a project to meet customer demand by fine-tuning the upper and lower control limits used in manufacturing this welding consumable.

Problems with Flux

The granular ceramic substance known as SAW flux (see picture below) is manufactured by mixing mineral and chemical components in proprietary proportions and fusing the mixture in an electric furnace. The molten product is then quenched in water, dried in a rotary kiln, and crushed and sieved to yield a granular product. The final product is sold in sieve mesh fractions, in a number of sizes.

SAW Flux

The granular composition is physically added to cover the welding arc zone (hence the name submerged arc). It shields the weld arc zone from the atmosphere, refines the weld metal and peels off after solidification.

The company in this case study was approached by one of its flux-using customers with an unusual problem. By speeding up the welding process and, in effect, increasing operating currents and voltages, the company was experiencing higher productivity. However, the productivity increase also resulted in a dramatic rise in weld defects. Up to this point, they had used SAW flux for more than 10 years with very satisfactory results.

A data collection team was sent immediately to the customer’s location to investigate. Through analysis, the team identified the mesh (particle) size fraction of the flux to be the root cause of the defects. While the company had been supplying the customer with a product designated as mesh 8 x 48 (meaning 100 percent of the mixture would pass through a size-8 sieve, and 0 percent would pass through a size-48 sieve), the new optimal size fraction was mesh 18 x 30. This fraction had upper and lower control limits that were almost 50 percent stricter than what was being currently supplied.

Fixing this problem meant eliminating 20 percent of the company’s currently sellable product. Because India is a cost-sensitive market, price increases to make up for the loss was not an option. Thus, the company began a Lean Six Sigma initiative to reduce product variation to the new customer requirement and simultaneously reduce its operational costs drastically.

Completing the Project

The company set a project goal of reducing product variation to the customer-acceptable upper control limit of mesh 18 and lower control limit of mesh 30 within two months.

The Lean Six Sigma team collected data from the flux creation process and plotted a Pareto chart of where defects occurred. They noted when the flux size fraction did not conform to the new control limits. Of the various manufacturing process points – quenching, drying in the kiln, crushing and sieving – the largest number of defects (75 percent) were found in the crushing stage, with 15 percent taking place in the sieving stage.

Based on this information, the team decided on an action plan. They started by focusing on optimizing the operation of the roller crusher and the sieve decks. Simultaneous 5S (sort, straighten, shine, standardize, sustain) and total productive maintenance programs were initiated for both machinery stations to aid in continuous improvement. The programs included regularly scheduled vibration and alignment checks, and calibration of measurement tools.

Next, the team collected data by varying the operational parameters of the crusher, namely the revolutions per minute, the gap between the crushers and the feed rate. They plotted the data in a Pareto chart and fishbone diagram to help address the process limitations.

The team also carried out a design of experiments, varying the three parameters (roller gap, roller revolution speed and material feed rate). Through these trials they arrived at the ideal set of parameters. Line balancing, movement analysis and takt time studies also were undertaken to ensure a uniform production rate between work stations and breakdown-free production.

One example of the added process improvements based on the data-driven campaign is the placement of photo cells connected to warning buzzers to indicate non-conforming gaps between the crusher rollers. This poka-yoke, or failsafe, system ensured a properly calibrated machine at all times. The rollers themselves were surfaced with a special alloy and machined to ensure smooth, vibration-free operation.

Ultimately, through the strategic application of Lean Six Sigma protocols, the company experienced a more than 30 percent improvement in its bottom line.

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Using SQDCM Boards the Right Way for Effective Gemba Walks

Based on a request that stemmed from a discussion earlier in the year, I spent three days at a company’s plant to help them finetune their Gemba walks. Several of their floor leaders had attended a training session and approached me with questions. The training highlighted a problem they had been having since they implemented their first safety, quality, delivery, cost (sometimes inventory and/or productivity), morale (SQDCM) board about one year earlier.

Figure 1: Template of an SQDCM Board

Figure 2: Example of Modified SQDIP Board

Figure 3: Example of Modified SQDIPM Board

Development of a Typical SQDCM Board

Their first SQDCM board described in this example (not shown in photographs) was put in the department occupying the middle of both the physical facility and process flow. They had included an accountability process* at the board as well. As the year went by, they expanded into other process areas within the facility.

The metrics that were chosen were, for better or worse, “handed down” from the corporate office located in another city. Those metrics were used at each board, with little or no modification permitted. This led to difficulty for many of the company’s leaders. One big problem: The daily Gemba walk was conducted in the order the boards were created, not in the logical flow of the process. As with so many misunderstood elements in an attempted Lean transformation, the focus was on not being red, rather than identifying and correcting problems.

What did this specifically look like? Red items on the fancy SQDCM letters were transferred down to a countermeasure (C/M) sheet, but in many instances, no actions were identified. There was even a checkbox for “no C/M needed.” (Hint: If you have a red, it should always have a corresponding countermeasure!) In addition, red situations were glazed over quickly so green situations could be highlighted.

None of this is uncommon. Too many organizations attempting to either do Lean or possibly transform simply don’t understand the concepts and theory behind the numerous tools. SQDCM isn’t simply putting those letters up on a board. Gemba walks aren’t simply management by walking around (MBWA) – popular in the ’80s and ’90s. Strategic deployment isn’t simply an X-matrix in the CEO’s office or, even worse, an annual operating plan.

When organizations truly want to benefit from Lean thinking, the leadership understands this requires a transformation – the entire business needs to change the way it operates. Most importantly, the organization needs to understand that Lean is a holistic system. This is why a tree is one of the most common visualizations of Lean. The roots, the soil, the trunk, the branches, the leaves, the sun and the rain all must work together for the tree to maximize its potential. Simply dropping a seed in the ground doesn’t guarantee success.

Tool Use of SQDCM Boards

So, what should this complete transformation look like? Let’s start with two points of basic tool use of SQDCM boards.

1. Always start at the point closest to the customer. It doesn’t matter how good your manufacturing is if you can’t get product out of shipping. Put your first board there. See how you are performing to your external customer. Then put the boards in place moving backward. That might be warehouse, packing, painting, assembly – whatever the process is that delivers to shipping. Don’t wait months between boards. Push for one every week or two. End with boards in scheduling, purchasing and maintenance. If appropriate, get boards to HR, finance, sales, customer service and R&D too. Just remember – start closest to the customer and work your way backward.

2. Determine the right metrics for the boards. Safety is always first. The metrics are presented in the name in order of priority (safety, quality, delivery, cost [sometimes inventory and/or productivity], morale – although I often move morale ahead of safety, in keeping with Toyota’s respect-for-people mantra). The metrics at the floor need to relate to the floor but also need to tie to company goals.

Floor-Specific Goals

Boards that have the same percentage metric or labor/hour metric across departments aren’t scaled to reflect the specific areas. (I’ve never seen shipping, assembly and machining have identical outcomes.) Pay close attention to the behavior the metric drives. For example, with OSHA total reportable incidence rate (TRIR), it either becomes an impossible goal due to injuries, or employees hide injuries to not affect the goal. Instead, try measuring something like “more than five safety opportunities identified each week.” This is a proactive goal. In theory, the more opportunities identified, the fewer actual injuries occur. Thus, the floor metric is supporting the corporate metric of reduced recordable injuries.

It is important to note that not only do these goals need to be floor-specific (as opposed to company-specific), but they also need to be customer-driven. Each department’s customer is the next department in line. Is the machining department delivering product at spec, on time to assembly? Is shipping delivering to the delivery company in the same way? If the organization can deliver on time internally, corporate delivery performance will be improved. Likewise, each department should be managing inventory. Be careful not to simply manage dollars or pieces. Rather, the inventory goal should be reflected by inventory turns and stock-outs. These two metrics drive each department to control their inventory level and strive to have the right inventory on hand. This helps control cost at the corporate level.

Connection with Strategic Deployment

Now, tie this to strategic deployment (SD). As noted above, the plant SQDCM should connect to the corporate goals. This means there should be deployment of those SQDCM goals from top to bottom.

Figure 4: Connect the Plant SQDCM to the Overall SD

When the X-matrix is created, it should be a three- to five-year plan, with annual achievements. The targets to improve should be related to the stretch goals of the organization (or facility). The plant referred to in the beginning of the article faltered here. They simply took the corporate deployment goals (more like annual operating plan goals) and rolled them into department SQDCM boards. This made the measurement cumbersome, difficult to relate to employees and stifled discussion during the Gemba walks.

Strategic Deployment Is Critical

Early in my career, we started with SQDCM boards without SD. I try not to do this now. For our first 18 months, we struggled with the process. When we initiated SD, it seemed to tie everything together for our managers. It didn’t affect the direct labor employees simply because our initial SQDCM was floor-specific (because there was no strategic deployment). Note: Initial attempts at this process can be time-consuming for an organization. However, the planning becomes both easier and faster with experience.

Here are a couple other tricks for the SD process.

1. Start the process in October. This ensures the organization is ready by January. Remember, a strong SD process has catchball – the two-way process of goal discussion going from executive offices to shop floor.

2. Build a Gantt chart into the SD process. Many first- and second-year SD processes forget about timelines. Plants expect to hit goals in January when the projects aren’t even active until April.

As shown in Figure 5, the goal of the SQDCM board isn’t the pretty green or red letters at the top, but rather the importance of driving problem solving. The focus should be on cause identification and solution implementation, not: are we red or green?

Figure 5: Root Cause Identification and Problem Solutions

Gemba Walk

Next to the Gemba walk! There are many, many ways to conduct the walk process. There can be different tiers, different frequencies of walk and different expectations of leaders. This describes my way. To start, the highest level in the facility should be on the walk daily (what is often identified as the senior staff). Each department in the facility should also be represented (this is often beyond the senior staff). Strong walks are supported by leaders having team huddles to start the shift, before the walk. These are leaders and their hourly employees.

The walk should start closest to the customer, just like board implementation. The walk works back until it ends at receiving (or sometimes sales/customer service/R&D). Green is acknowledged, but red is discussed. What was the problem, what caused it, what temporary countermeasure was used, what is the next step for a long-term C/M? The temporary C/M is often where teams stop in the process (if they determine anything at all). This displays a lack of Lean understanding.

The challenge is to determine the long-term C/M. It is important to now note that the most critical part of the SQDCM board is not the pretty green or red letters, but rather the countermeasure sheet. This shows the actions to get the department (or facility or company) back to green. In addition, the lower information on the board often reflects trends over time. This, too, can be critical, to ensure departments aren’t chasing squirrels and missing the bigger picture. The focus should always be on the ideal state (defined as 1×1, on-demand, on-time, with perfect quality, safely created and delivered, at the best cost).

Source: isixsigma.com

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5 Ways Project Software is Changing

Increasing demands in the project profession are putting new demands on the capabilities of project software. In order to keep up, project management software must continually develop. Here we take a look at five of the key changes and innovations we are seeing as part of the evolution of software for this industry.

Big data capabilities

Described as the fourth industrial revolution, we are in the midst of extraordinary advances in technology. The use of big data is a key part of this movement and has fundamentally revolutionised business decision making. Evermore project managers are leveraging big data in order to reveal trends and patterns, and to form decisions that will positively impact both customer experience and profitability.

Big data is becoming paramount for project success. For this reason, it is important that project software is capable of dealing with extremely large sets of data. Software must be able to collect the information intelligently.

Tools used for tasks, ticketing, scheduling or communication are being upgraded with new features. In some cases, tools are being redeveloped to have much broader capabilities with the aim of being an all-in-one system. The alternative is using apps and tools which integrate with project management software. Such tools can not only handle big data, but also interpret it and display it in a user-friendly way.

Improved visualisation

Keeping tabs on your metrics is easy when they are illustrated clearly. This is why software is increasingly prioritising a sleeker interface. Not only is clear visualisation simpler for viewing large amounts of information at once, but also allows for ease of analysis and strategic planning.

Improved visuals are aiding active project reporting too. Clear dashboards within software allow project managers to check on status and performance in an instant. These snapshots can also be invaluable for reporting to senior management, clients or stakeholders; and can be used to preempt the project’s future, allowing the user to plan effectively.

Machine learning

The use of artificial intelligence is set to rise in almost every industry, and project management is no exception. Platforms such as Forecast and ClickUp have already evolved to utilise advanced AI-driven assistants to automate tasks, for instance turning tasks into to-do lists for individuals.

Through machine learning many big data tools have the intelligence to interpret structured and unstructured information. They are able to flag any abnormalities, for example if a task is taking longer than average to complete. Future iterations of project software will become even more intuitive, and sophisticated enough to make recommendations for task assignment, resource allocation and efficiencies.

Machine learning is predicted to make a project manager’s life easier; helping them to keep their finger on the pulse, crunching the numbers, and making smart suggestions.

Software accessibility

In order to have a finger on the pulse at all times, project managers are increasingly using project software on the go. This decade has seen a rise in remote and flexible working, which has led to a shift in employees using their own devices for work. In order for a project management platform to be effective the entire team must be using it, and so there is a great demand on software to be accessible from any device and operating system.

What’s more, cloud-based project management software is more widely used than ever, allowing managers and teams to access project information and work from anywhere. Going forward the rollout of 5G will improve the accessibility of project platforms even further. There will likely be a decrease in the need for work offline modes, and a further increase in working on the go.

More customisation

Projects are growing in complexity and becoming more challenging to manage. Software needs to counteract this and aid ease of management. The more data points there are to track, the more important it is that tools and apps innovate and offer flexible features.

No two projects are the same and so software is changing to allow for adding customisation. Many project management platforms now let the user personalise their dashboard with drag-and-drop user interfaces (no coding knowledge required). With a clear and customised aesthetic it can be far easier to grasp project progress at a glance and track the KPIs that matter to the project.

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Get Your Green Belt: IASSC Lean Six Sigma Green Belt Certification

IASSC Lean Six Sigma Green Belt

Lean Six Sigma has appeared as a popular business management strategy employed for projects globally. It eases a company to achieve process excellence initiatives, expedite product delivery, improve product quality, and drive increased profits to an organization. Lean Six Sigma emphasizes the value created by the Lean method while maintaining the statistical rigors of the Six Sigma methodology.

The Lean Six Sigma Green Belt Certification from the International Association for Six Sigma Certification (IASSC) will show your thorough understanding of all aspects of the DMAIC methodology and your ability to execute and understand Six Sigma tools and Lean principles efficiently.

The Lean Six Sigma Green Belt certification offers managers to process improvement, waste minimization, and value maximization. This certification is aimed at professionals with an industry or business-need for process improvement techniques.

If this sounds like you, and you would like to implement Lean Six Sigma’s methodologies in your workplace, you will benefit from the Green Belt certification. The Lean Six Sigma Green Belt professional will be competent in developing and assisting project teams and managing Lean Six Sigma projects from start to finish.

Achieve it, and you will learn how to reduce errors, control costs, streamline processes, and improve the success rates of your team’s projects.

Who Can Benefit from ICGB Certification?

Project managers and process owners need to learn how to use Lean Six Sigma to give improvement projects more successful.

Financial managers, plant managers, floor supervisors, and administrators who are trying a validated method for dramatically increasing their organization’s economic performance.

Professionals in health care, education, and the army, among many other industries, are committed to seeking Lean Six Sigma Black Belt certification.

Also Read:

Lean Six Sigma Green Belt Provides New Career Opportunities

Tips to Pass Your Lean Six Sigma Green Belt Certification Exam

I have created a list of tips to aid you in studying for the Lean Six Sigma Green Belt exam.
These are tips to help you pass your Lean Six Sigma Green Belt exam:

#1. Test Yourself on Practice Questions

To gain your certification, you will need to pass the multiple-choice Lean Six Sigma Green Belt exam. Before you take your exam, make sure you have thoroughly tested your knowledge with online practice tests to sharpen your exam technique. Take a look at Six Sigma Study Guide for an extensive collection of practice tests, exams, and questions.

#2. Use of Lean Six Sigma Study Guide

There is a wide range of study guides available online explicitly designed to help you study for the Green Belt exam. With an emphasis on easy-to-understand and smooth content, the Lean Six Sigma Green Belt Study Guide includes a full review of all exam concepts, practice questions.

#3. Join a Lean Six Sigma Green Belt Forum

Because of the broad and generally-applicable nature of project management, there is a wide range of forums and discussions you can find online, all with varying levels of quality.

As with all online forums, though, be conscious that not everyone is an expert, and not all contributions will be applicable or relevant! Learning as much as you can when preparing for the exam, will put you in a high position to take your knowledge into your business to improve processes and reduce errors.

Why Is IASSC Green Belt Certification In Such High Demand?

IASSC’s Lean Six Sigma Green Belt Certification proves your quality control skills and your ability to adapt to emerging or shifting market conditions without compromising on quality. As organizations aim for continuous improvement, they seek professionals that can employ problem-solving and business know-how to improve internal processes, control manufacturing, and process costs and increase profits. This course positions you to take the lead in property management projects.

As a Lean Six Sigma Green Belt, you will be involved in the continuous improvement of processes, products, and services. In this training, you will get to know the essential Lean Six Sigma approaches practically.

Summary

Lean Six Sigma Green Belts are paraprofessionals who have been instructed on the Lean Six Sigma improvement methodology, and who lead or support development leadership within the organization. They work on a data-driven path to reduce defects and change processes in the organization.

The Lean Six Sigma Green Belt Certificate Program concentrates on creating a mindset and culture shift that reduces wastage of time and resources. It replaces the methods used in traditional settings with a set of tools that provide near-perfect results.

These certified professionals work to support or under the direction of a Six Sigma Black Belt. The Six Sigma Green Belt certification will provide you the credibility to make about changes that will improve your organization to realize its vision and help you achieve your potential. As a Six Sigma professional, you will go on general quality improvement by analyzing and solving quality problems and attempt to create a high-performance organization.

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PRINCE2 2017 is renamed PRINCE2 6th Edition

As of 1 January 2020, AXELOS has renamed PRINCE2® 2017 (the most recent updates to the PRINCE2 certification) to PRINCE2 6th Edition. This name change is not an update in itself — PRINCE2 6th Edition is a rebrand and doesn’t come with any changes to the PRINCE2 2017 course material or exams. Rather it has been changed to reflect the legacy, heritage and authority of PRINCE2 best practice, and to ensure the format of the name is aligned with that used by other frameworks within the project management industry.

What’s actually changing?

PRINCE2 2009 – the previous version – will now be called PRINCE2 5th Edition, while PRINCE2 2017 – the current version – will now be called PRINCE2 6th Edition.

Will the syllabus or exams change?

No, they will remain the same as PRINCE2 2017. There won’t be a change to the exams or syllabus until PRINCE2 7th Edition, which has not been scheduled for release, or even announced, as of February 2020.

Will the manual be reprinted?

The current version of Managing Successful Projects with PRINCE2® will not be reprinted, apart from maybe the front cover. If you bought the 2017 version of the manual before the name change, you won’t need to buy another copy.

Are 2017 certificates still valid?

Yes, because the course materials and exams are the same, all PRINCE2 2017 certifications are still valid. As before, you can check your current Practitioner status on the Successful Candidates Register.

What changes do I have to make?

The only change worth considering is to update your CV/résumé if you refer to PRINCE2 2009 or PRINCE2 2017. You can change it to PRINCE2® 6th Edition or instead just include the certification level, the date you passed, your candidate number and the training provider, like so:

PRINCE2® Practitioner (3 Sep 2019) Candidate Number P2R/999999 – ILX Group

Source: Prince2.com

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Avoid the “Bloom and Doom” Cycle

Over the past decade, the success of Lean Six Sigma has been highly publicized. The widespread adoption of the process improvement methodology across many different business sectors is one indicator of success. However, little is written about companies that fail in their Six Sigma deployments, or at least scale back their support over time. For obvious reasons, companies are reluctant to air their dirty laundry, but the phenomenon is serious enough to warrant public discussion.

Although limited reliable data exists on companies that abandon, phase out or replace Six Sigma programs, only minimal digging is necessary to find anecdotal cases of deployments gone wrong. By having conversations with peers across various industries, sifting through the blogs of frustrated participants or reading the few negative reports on a company’s Six Sigma experience, common warnings and patterns begin to emerge. The astute practitioner will notice that many companies that have had problems with their deployments face similar challenges and will see their programs move along the same rising and falling arc. This can be described as the “bloom and doom” curve, shown below.

The Six Sigma Deployment Bloom and Doom Curve

The Three Phases of Bloom and Doom

The Rise: This first phase of bloom and doom can be characterized by lots of excitement and initial support. Certification targets are published by organizational leaders (e.g. “X percent of the population must be Green Belt certified”). Ratios of Black Belts or Master Black Belts to employee base are standardized. Managers push to get their people certified. Employees are quick to realize how obtaining Six Sigma credentials will benefit their careers. Training classes are filled to capacity. Six Sigma can be found everywhere in the company. A myriad of projects are launched.

The Plateau: After certification targets are met, things start to slow down. Many of the company’s employees have completed their obligatory certification projects and never complete another. Managers have been rewarded for reaching certification goals and only have to maintain current levels. Training classes begin to thin out because most employees are now trained.

The Decline: Finally, the Six Sigma program goes down a slippery slope. Managers give the program lip service at best or – at worst – completely disregard it. Leaders have already moved onto whatever initiative is the “next big thing.” Employees don’t attend training and initiate Six Sigma projects only if coerced. Training stats may not even be reported at this point. Projects don’t follow the DMAIC roadmap, but are still labeled as Six Sigma projects. Project tollgates are nonexistent or done sporadically with limited attendance. Black Belts and Master Black Belts begin their mass exodus to other companies that are just starting Six Sigma or are still in the Rise phase. At this stage, Six Sigma exists at the company in name only.

The time period to go through all three phases can vary from organization to organization. The Rise can last from one to five years, the Plateau may be slightly shorter and the Decline can drag on indefinitely.

Five Ways to Defeat the Decline

This rise-and-fall pattern, however, is not inevitable. By following these five steps, practitioners can ensure that the path of their program will continue in a continuous upward arc.

1. Select the right metrics. Remember that Six Sigma is not an end unto itself. The business results delivered through Six Sigma are what matters most, whether they are measured in hard or soft dollar savings, increased revenue, or improved customer satisfaction and loyalty. Beware when companies use metrics such as certification rates or the number of Belts as the primary indicators of success. Belt certification does not guarantee year-over-year business value. Once organizations have reached certification targets, there may be little incentive to continue their focus on Six Sigma without more relevant success metrics. The primary metrics to measure Six Sigma success should always be based on the business value returned to the company.

2. Value the organization over the individual. Understandably, employees desire certification for many reasons, the most obvious of which is that certification will help them advance their careers. However, the importance of Green Belt or Black Belts diminishes over time if the only results they deliver are part of their certification projects. In terms of the number of Belts, more is not better if continued value is not delivered year after year. After all, what is the value of a Belt who does not complete a project? Zero. Six Sigma leaders should never be driven by an individual’s desire for certification. Rather, organizational goals should be the focus, with individual certification as a positive byproduct of the process of achieving those goals.

3. Select the right projects. Closely linked to the idea above, project selection is a key component to Six Sigma longevity. Projects should never be selected merely to get someone certified or to wrap DMAIC around a problem that is clearly not a Six Sigma project simply to gain visibility. Meaningful, impactful projects help keep momentum. Leaders should be very selective when applying Six Sigma. Additionally, project benefits should be validated by leaders outside the deployment, such as finance representatives, to avoid reporting inflated results that will eventually erode credibility.

4. Build the right infrastructure. Who is ultimately accountable for the success of Six Sigma within an organization? Not the Belts. The organization’s leadership determines success or failure. Too often, Belts are expected to carry a Six Sigma deployment. Instead, the organizational leaders that act as project sponsors or Champions should be the keystones to success. From communicating expectations and responsibilities to selecting projects and training leaders, management must provide the program with a strong foundation. Additionally, deployment leaders must evaluate foundational components of the business before implementing Six Sigma. For instance, does the organization exercise basic process management skills? Are processes documented and routinely maintained? Are metrics used to drive decision making? If not, leaders may have some more planning work to do before rolling out Six Sigma training and projects.

5. Continually evolve the program. Despite what some will say, process improvement and quality are evolutionary, not revolutionary, endeavors. At the beginning of this decade, Lean was sometimes seen as a competing methodology to Six Sigma before people got smart and combined the two. The infusion of Lean tools and ideas helped to reinvigorate Six Sigma. Likewise, organizations should prevent Six Sigma from becoming stale. Six Sigma professionals can help by searching for ways to expand the skill sets of employees and keep the initiative fresh. Whether it involves the implementation of Design for Six Sigma (DFSS) to complement DMAIC, or the introduction of new tools, ideas or concepts, there is no reason to impede the growth of the continuous improvement body of knowledge.

Six Sigma practitioners all aim for continuous gains over time. The challenge is to maintain momentum after the initial surge and excitement wears off. The above actions, if taken at the beginning of the deployment, can create the right environment for sustainability. With these five elements in place, Six Sigma professionals can keep an eye on the warning signs to avoid the dreaded Plateau and prevent Decline.

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Before Deployment: “Minding Your Ps to Get Your Q”

Change agents involved in an effort to introduce Lean Six Sigma into an organization go through a honeymoon stage where there is consensus on the following:

◉ There is a need to become a quality-focused organization.

◉ The Six Sigma path to quality is all about customers’ needs and expectations.

◉ Decisions should be based on data.

◉ This will be a continuous learning-doing-improving cycle.

◉ Quality is the goal.

What cannot always be agreed upon – and in numerous occasions is not even asked out loud – is an honest assessment of the organization’s maturity in the continuous improvement process and its readiness for adopting a Lean Six Sigma culture. In order to meet the expectations and requirements of the internal organization, those leading the deployment must mind their “Ps,” answering two fundamental questions:

Will Lean Six Sigma be rolled out through a push approach or a pull approach?

And, in order to help make that decision in an objective fashion:

How is the company positioned on the quality learning curve in terms of culture and infrastructure?

At a recent Lean Six Sigma roundtable in New York, Michael Fischbach, senior vice president from Bank One, presented the concept of the Continuous Improvement Maturity Assessment Model (see figure below). Fischbach’s premise – based on more than 15 years of experience in the change management and continuous improvement fields – is that not all environments are ready for a wide-scale rollout of Lean Six Sigma. Specifically, services organizations and financial services in particular, need to understand where they fall on the readiness continuum before choosing an approach to incorporating Lean Six Sigma into their environments. Although a global rollout across all functional processes and platforms is ultimately the approach with the biggest return, a pilot project is a viable precursor to a broader implementation.

Position on Learning Curve Indicates Readiness for Lean Six Sigma

Finding an organization’s place on the assessment curve is as much a political act and art as it is an objective process. However, Fischbach believes that – at minimum – to demonstrate an organizational grasp of continuous improvement basics, a company should already be utilizing or be knowledgeable of the following:

◉ Metrics

◉ Scorecards

◉ Business reviews

◉ Simple problem solving

◉ Voice of the Customer (customer data available)

In addition, there may be other elements to consider as an organization does a gut-check of where it falls on its commitment to quality and its readiness for Six Sigma on a grand scale. Examples may be:

◉ Quality standards such as participation in TQM, Baldrige, ISO 9000

◉ Strategic plans that link to projects, quality functions, mission statements

◉ Customer satisfaction programs, segmentation, retention programs

◉ Project management methodology, planning, implementation, project office

◉ Continuous improvement programs, cost of quality, process mapping

◉ Human resource programs, leadership development, teams formation

◉ Training that includes quality, facilitation, feedback

Understanding an organization’s position on all of the elements above will help senior management objectively determine whether it is just starting on its way to establishing a quality-friendly environment, whether it has already developed the capability to execute in a quality fashion, or whether it has achieved quality as a way of life.

Pull Approach Versus the Push Approach

If the company is in the early stages of the process, it makes sense to utilize a pull approach for the introduction of Lean Six Sigma and pilot a project in the area of true need. This pilot project approach, coupled with high support from the management group, leads to a high probability of success. The key is to make a true commitment to execution in order to demonstrate success in terms of payback and speed. This is the catalyst that will create interest and the pull for more Six Sigma projects in the organization.

If, on the other hand, the assessment of the organization shows that it is much further down the path of quality, then a larger-scale rollout is less risky and will have greater payback in a shorter period of time.

Here is a synopsis of push and pull approaches with pros and cons.

Approach	What Is it?	Pros and Cons
Push	+ Management believes that Lean Six Sigma will fundamentally transform the way company does business + Management is ready to make the rollout the single most critical imperative for the company + Management is committed to achieve “full deployment” in 6 to 12 months (Full deployment = 1%+ of employees as Black Belts)	Pros + Overwhelms organizational opposition + Largest mass generates largest results and momentum + Highest ROI from economies of scale on cost and acceleration of benefits ---------------------------------------------- Cons + Requires intense top level headroom and commitment + Requires intense planning effort upfront
Pull	+ Typical commitment is to only one or two waves (25 to 50 Black Belts and 5 to 10 Champions) + Typically no major impact to broader organization; may be large impact if focused in just one or two business units + Pilots used as test cases for decision on further deployment and through success create interest from broader organization	Pros + Low total cost + Exposure to other organizations’ application of process + Good approach if “experimentation” is a key objective ---------------------------------------------- Cons + Smaller business impact + Higher risk of rejection because organization may not think management is serious + Sample size may be too small to validate approach

Regardless of the approach, the following principles need to be at work for a small- or a large-scale deployment of Lean Six Sigma:

◉ Management engagement

◉ Dedicated and well-respected deployment Champion

◉ Accountability for project results

◉ Dedicated resources

◉ Black Belts with leadership and process skills

◉ Value-based project selection

◉ Recognition of the history and culture of the organization

Getting agreement on what is being sought is easy. The q everyone is striving for is quality. Quality can be thought of as the ability to deliver products and services that fulfill or exceed the requirements or expectations of all stakeholders. Bottom line, quality is primarily about getting the right answer for the ultimate customer. But, by saying “all stakeholders,” it is important to realize that change must move through the halls and corridors of the organization (associates, internal customers, management and culture) before there can be any delivery to the streets upon which the final customers reside.

In other words, the company must meet the expectations and requirements internally, before it can deliver the right answers externally. To do that, the organization needs to mind its p’s (understand its position on the curve, push or pull) to get the q (quality).

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