1 © visteon corporation gb-mod #7 rev 3.6 10/03 define phase gb module #8

1© Visteon Corporation GB-Mod #7 Rev 3.6 10/03

Define PhaseGB Module #8


Continuous Improvement Road Map

Improve

Control

• Define CTQ• Determine Current State

• Determine Key Input / Output Variables

• Perform MSA• Calculate initial process

capabilities

Measure

• Verify Effects of Key inputs with DOE’s

• Determine Optimum Settings

• Update Control Plan• Verify Improvements

Analyze• Evaluate Existing Control Plan• Using statistical methods to determine potential key inputs• Prioritize key input variables

N

Define


Define Phase

• Scope out the Project• Define Customer• Define Critical to Quality Characteristics (CTQs)• Form a Team


Define - Toolbox

• Project Scoping• Tools for Scoping

X-Y Diagram, High Level Process Map, Cause and Effect Diagram (fishbone), Cause and Effect Matrix

• Surveys• Pareto Charts


Section Objectives

• Understand the importance of Six Sigma project scoping

• Determine the keys and tools to properly scope a Six Sigma project

• Understand the steps in the Define process and how to work through them

• Learn the importance of Critical to Quality Definitions

• Understand how CTQ ties to metrics


VisteonContinuous Improvement

Project Scoping


Responsibility for Project Scoping

Project Champion Primary Lead

Black / Green Belt Secondary Lead

The Project Champion has the ultimate responsibility for effectively scoping a project however the Black / Green Belt has a vested interest and should be included in the process


Support for Project Scoping

Project Champion Primary Lead

Black / Green Belt Secondary Lead

Experienced Black Belts

Master Black Belts Deployment Director

The Project Champion and Black / Green Belt should use their available resource pool in scoping projects


• Problem Solving – The project should address a problem with an unknown solution that addresses an organizational performance issue

problems with unknown solutions are for black belts – problems with known solutions are for project managers

• Goals – The project should have clear numeric goals tied directly to a well defined set of metrics that correspond to the opportunity

• Project Tracking – Progress should be tracked through the well defined set of metrics

• Business Benefit – The project should culminate in a measurable benefit in terms of cost, schedule and /or quality

• Implementation Schedule – The project benefit must be realized in a reasonable period of time (typically defined as 3-6 months)

Any projects taken longer than 6 months should not be a accepted as a Six Sigma project – scarcity of resources

• Six Sigma Process – The project should follow the DMAIC process for problem-solving

Definition of a Six Sigma Project


• Six Sigma Tools – By following the DMAIC methodology a portion of the Six Sigma tools should be utilized

• Capability and Confidence – The project should serve to increase the self-confidence of the Green Belt and the project team in utilizing the DMAIC methodology, while simultaneously increasing the corporate confidence in Six Sigma with the successful results

• Process Orientation – The project should be viewed from the orientation of improving a process

Notice: There are no ties to financial requirements in the definition of a Six Sigma project

Defining a Black / Green Belt’s initial project based upon minimal financial savings can serve to force over-scoped projects

The $250K / project savings is an average of the entire Black Belt population

Definition of a Six Sigma Project


Narrowing the Scope

The definitions of a Six Sigma Process should be used to

narrow the scope of projects

Large Scoped Project

Narrow Scoped Project

Project

Definitions


Narrowing the Scope

Issue with Large Scoped Projects

Additional Time Required to Close Project

•Tangible cost of deployment

•Intangible costs increase

“ World Peace”

“Boil the Ocean”

“World Hunger”


Narrowing the Scope

Tangible cost of deployment Intangible costs increase

• Frustration due to lack of progress

• Diversion of manpower away from other activities

• Delay in realization of project benefits

• Team member turn-over

• Lower project closure rates

• Fall in confidence with program

• Higher material costs

• Higher labor costs


Larger Projects

Small Projects

Small Projects

Small Projects

Small Projects

Larger scoped projects should be broken down

into a number of smaller projects

Any project that is scheduled to take longer than six months to complete should be broken down into smaller subsequent projects

Narrowing the Scope


Narrowing the Scope - Example

Electric Motor Issue

Brush Wear Issue

Brush Hardness Variability

General Problem: Electric Motor Reliability is Poor

Project Scope: Reduce Variation in Brush Hardness

Source: SAE Paper 2002-01-0897 “Creating a Positive and Successful Experience for Black-Belt Candidates “

Data Taken

Data Taken

Data Taken


Narrowing the Scope - Data

Source: SAE Paper 2002-01-0897 “Creating a Positive and Successful Experience for Black-Belt Candidates “

Data Taken

Data Taken

Data Taken

It is often required to assemble a significant

amount of data to properly scope a project


• Lack of focus on scoping in Six Sigma training and education – reliance on OJT

• Lack of organizational experience in Six Sigma• Lack of Master Belts to serve as a support to

Project Champions and Black / Green Belts• Difference between Champion “top-down” vs.

Black / Green Belt “bottom-up” approach• Project Champions tasked with sometimes

conflicting mandates• American cultural motivation factors• Ties to financial targets for a Black / Green Belt’s

initial projects

Barriers to Effective Scoping


• Issues with scoping are even more prevalent with new Black Belts and Green Belts

• A Black / Green Belt’s performance on their first project will set the stage for their future success with the Six Sigma program

Scoping Black / Green Belts’ Initial Projects


Scoping Black / Green Belts’ Initial Projects

Recommended Refined Goals / Requirements for new Black / Green Belt’s Initial Projects:

1. Achieve closure in a 3-6 month period

2. Follow DMAIC process

3. Utilize a sample of the Six Sigma tools

4. Most importantly – GAIN CONFIDENCE

The primary objectives of a new Black / Green Belt’s initial project

– reach closure

– gain confidence

– and grow to fight another day


Special Considerations for Green Belt Projects

• A Green Belt project typical is within their own functional area or touches their own area / desk

• A Green Belt project can be a sub-set of a larger Black Belt project

• Many Green Belt projects are centered on developing a measurement system where one did not previously exist

• The Green Belt project should be scoped to use the applicable Six Sigma tools

• A Green Belt is typically assigned a Black Belt mentor to see them through their first project

• A Green Belt project should be complete in less than 4 months


Tools Used to Effectively Scope a Project• Y/X Diagram• High Level Process Map• Cause and Effect Diagram (fishbone)• Cause and Effect Matrix• Pareto Chart

Tools for Narrowing the Scope


Y/X Diagram – can be used to progressively uncover the deeper relationship between an issue and its constituents

The relationships are continually uncovered until an factor is identified that would serve as an adequate scope for a Six Sigma project



X/Y Diagram Example - Lemonade

Y = X1 + X2 + X3 + X4

Y = X1 + X2 + X3 + X4 + X5

The taste of a glass of lemonade is dependent on:•X1 – the type of lemon ingredient•X2 – the amount of sugar added•X3 – the type of water added•X4 – the amount of ice added

The lemon ingredient is dependent on:•X1 – if it was from fresh squeezed lemons•X2 – if it was from liquid concentrate lemons•X3 – if it was from powder concentrate lemon

The fresh squeezed is dependent on:•X1 – where the lemons are grown•X2 – how the lemons are transported•X3 – age when squeezed•X4 – how the lemons were squeezed•X5 – if pesticides where used when growing

In this example an adequately scoped project may deal with the process for how the lemons are squeezed – as indicated by the circle around X4

Y = X1 + X2 + X3 + X4


A High Level Process Map – can be used to outline the boundary area for a project scope.

The area addressed by the scope in a process map is circled. If the circle encompasses a large process area, or if there are more than one circle in separate areas of the map, the project may be over-scoped



Business Process

(“Strategic”)

BusinessProcesses

SIPOC

Detailed Subprocess

Map

BusinessDevelopment

Sales Underwriting Contracting Customer Service

Terms Docs Neg Close

Underwriters

S

(ext.) Customers(int.) Cust. Service Dept.

C

Process Mapping Example

High Level Process Map


A Cause and Effect Diagram (fishbone) and Cause and Effect Matrix – can be used to outline the boundary area for a project scope in the same manner as the process map however with respect to causes instead of process steps

The potential causes / areas addressed by the scope in a cause and effect diagram is circled. If the circle encompasses a large area, or if there are more than one circle in separate areas of the diagram, the project may be over-scoped



A Pareto Chart – can be used to break down a project scope using numerical data – the pareto chart is typically used in conjunction with one of the above methods to select the area of focus

If the potential scope encompasses several bars on the pareto chart, the project may be over-scoped



After data is collected during the Measure phase, it may be necessary to go back and refine the scope and redefine the project specifics

Refining the Scope

Define

Measure

DataRe-scope


•Project Team•Project Charter•High level process Map•Customer Requirements

Summaryof Defineoutcomes

Purpose: To get the team established with an agreed clear opportunity

Define Process Summary

ProjectCharter

CustomerRequirements


Forming the Team

Approved Project


Forming the Team

• Green Belt Module #6 Team Dynamics






ProjectCharter



Forming the Team

Approved Project


• Project leader’s responsibility• Means to control, manage and approve project• Serves as a contract between the Champion

and the project team• Should be updated with any changes to the

original agreement

Project Charter


• Typical elements in a project charter: Purpose Problem Statement Objective Scope Project Plan (Gantt chart) Stakeholders Champion Team Team Contract Resources Business Case Deliverables

Project Charter






ProjectCharter



Forming the Team

Approved Project


Business Process(“Strategic”)

BusinessProcesses

SIPOC

Detailed Subprocess Map

BusinessDevelopment

Sales Underwriting Contracting Customer Service

Terms Docs Neg Close

Underwriters

SS(ext.) Customers(int.) Cust. Service Dept.

CC

Tasks Procedures

Process MappingLevels Of A Process


New Employment Process – SIPOC Map

Job Descriptions

Hiring Budgets

Dept. Managers

Exec.Committee

Recruiters,etc.

Candidates

NEW EMPLOYEE Qualified

Fits XYZCulture

Oriented toBusiness

Set-up forPayroll,Benefits

MANAGER

CO-WORKERS

CUSTOMERS

RECRUITMENT AND

SELECTION

PAYROLL AND

TAX SET-UP

BENEFITSENROLLMENT

Suppliers Inputs Process Outputs Requirements Customers

ORIENTATIONTRAINING

Process MappingSIPOC






ProjectCharter



Forming the Team

Approved Project


Process for Customer Requirements/Needs

Build the Vision

Sell theVision

Tools Output

More of / Less ofAnalysis

WhoPerformed by the TeamFacilitated and led by the Green Belt

Threat/OpportunityAnalysis

Corridor Conversation

CommunicationsPlan

Message Purpose Media Audience When/ Who Measure

Communications Plan

Corridor Conversation

Process model Process CTQs

and Y Measures

ProjectCharter

IdentifyCustomers and

elicit CTQs



Six Sigma Focus

• Six Sigma needs focus, which is achieved through the business and customers

• Projects are selected to make an impact on the business to: Improve customer satisfaction Reduce costs - preferably bottom line costs

• To provide the focus we use the concept of

Critical To Quality (CTQ)


• Critical to Quality The select few, measurable key characteristics of

a specific part/product or process that relate to customer satisfaction

• CTQ Attributes CTQ’s are customer issues expressed in a way

that is measurable For any one issue there maybe more than one

CTQ CTQ’s can be internal and external

Critical to Quality (CTQ)


Identify Customers and Elicit CTQs

• All processes have customers (internal or external) • All customers have expectations and needs• The process needs to deliver the customer expectations and needs• Understanding Customers’ expectations/need is about:

identifying the customer(s) identifying their expectations (CTQs) -often via their issues verifying their expectations ensuring the CTQs align to the process outputs – can we measure the

CTQ through measurements of the process outputs?

• While conducting the SIPOC, the team will have already identified the Ys. We need to ensure these are related to the customer CTQs – this step is concerned with verifying and expanding these relationships


Process

Identify Customers

Listen to theVoice of the Customer

Voice of the CustomerTranslation

Structure CTQs

Review Project Charter


Identify Customers

Suppliers Inputs Process Outputs Customers

Coffee Mug

Sugar

Electricity

MilkMilk Supplier

Power Company

CateringSupplier

Mug of coffeeManufacturer

Making a Mug of Coffee

Customer

Change

Process Steps

Coffee

Step 4:Add Hot

water

Step 4:Add Hot

water

Step 5:Add Milk

Step 5:Add Milk

Step 1:Heat

Water

Step 1:Heat

Water

Step 3:Coffee in

mug

Step 3:Coffee in

mug

Step 2:Take Order

Step 2:Take Order

Step 6:Collect Money

Step 6:Collect Money

Step 6:Give mug

Step 6:Give mug

OrderCustomer

StaffSociety

Money

Use your SIPOC as a start, butthink about the: • Type of Customer• Customer’s Customer

Should these people be included in the SIPOC


Types of Customer

• For many products / services there are more than one customer Economic - has the purchasing

decision Technical - makes an

evaluation User - has to use it!

• They will have different perspectives and even different expectations!

We must find out The views of each type Their role in the decision

making process

Check to see if your SIPOC needs to or has considered thedifferent types of customers


Customers’ Customers

Our customers’ have customers and we need to identify these

S

S

S

S

S

S

S

Process

C

C

C

C

C

C

CCTQ Cost

CTQ On-timeDeliveryThere should be a

flow-through ofCTQs Mismatches should

be investigated


Listen to the Voice of the Customer

• If we want to capture needs and expectations, and understand their issues or concerns, we have to listen to the customer

• We need to remember that: Different customers have different needs and expectations Different categories of customer have different priorities

• Customer’s often express their needs expectations issues etc. in vague general terms. Therefore, we may need to seek clarification

• Ultimately, customers require six basic factors


What Do Customers Want?

The six main factors that influence customer satisfaction (internal and external) are: FUNCTION / FEATURES

the product or service must work and have the expected features PRICE / COST

must be reasonable AVAILABILITY / DELIVERY

must be on time QUALITY / RELIABILITY

must be up to expectation COMPETENCE

good track record MARKET RESPONSE

time to market


Sample Questions

• For all customers, you should ask questions and listen to the answer

• Typical questions are:1. What is important to you about our product/service? (ask

them to rank each of these needs in order of importance)2. What do you consider to be a “defect?”3. How well are we performing in the areas you consider

important? (How do you measure us?)4. What do you like about our product/service?5. What can we do to improve our product/service? (What

can we do to make your job easier?)6. What specific recommendations would you suggest to us?


Approaches to listening to the Customer

Reactive systems Information comes to you

whether you take action or not

Customer complaints (phone or written)

Problem or service calls Technical support calls Letters and Claims Sales reporting Product return information Warranty claims

This information tell us about current and past problems

Un-met requirements

Proactive systems You need to put effort into

gathering the information Interviews Focus groups Surveys Comment cards Data gathering during sales

visits or calls Direct customer observation Market research, market

monitoring Benchmarking

This information tells us about past, current and future needs


Voice of the Customer Translation

• What is it? Voice of the Customer Translation (VoC) is a simple, but

powerful tool that helps in determining the customer’s Critical to Quality aspects

• How is it captured?Capture Customers’

requirements/complaints

Determine the underlying issues

Determine a wayof measuring the issue

CTQs

Determine the definition of Defects


Translating Customer Needs to CTQs

Voice Of The Customer

Key Issue CTQ

If I’m not put on hold, I always

seem to get the wrong department

or person

Add additional menu items to voice system (BAD)

Customer gets to the correct person the first time (GOOD)

The customer wants to be put through quickly

to the right person

You send me an invoice at

different times of the month

Customer wants timely bill (BAD)

Customer bill received 15th day of month, every month. (GOOD)

Consistent monthly billing

DefectDefinition

Customer gets the wrong person

Customer waits too long

Bill received before 15th

Bill received after 15th

While CTQs should be measurable it is often easier, and more enlightening,to measure the failure to meet CTQs. These are defects and are a measure

of the variation in a process


Guidelines For CTQs

• Customers often express their requirements, complaints, needs and expectations in vague statements. These have to be translated into measurable CTQs.

• Write the CTQ as a requirement, not the solution.• Be concise.• Write as a sentence and consider including an example.• Remember, CTQs can, and will need to, be measured.• Determine the defects – failure to meet the CTQs.• Write the CTQ as a positive statement.


Structuring CTQs

When capturing CTQs it is often useful to structure them

Customer

NeedComplaintExpectation CTQ CTQ

CTQ

CTQ

CTQ

CTQ

CTQ

CTQ

CTQ

CTQ

CTQ

CTQ Tree

Look for links to Process Ys


CTQ Tree• What is it?

A tool that helps in the translation of broad customer requirements and needs into specific CTQs

• Why use it? Helps the team move from the broad and often vague high-level requirements

and needs towards detailed requirements Helps to ensure there is a direct relationship between the CTQs and the process

Ys• How to use it?

List the customer requirements / needs Identify any common groups – identifies existing stems and branch relationships Break high level requirements and needs into more detail Look for links to Process Ys from SIPOC Assemble into the tree structure Post-its are useful here


VoC and SIPOC

SupplierInputs

Processrelationship to the process

relationship to the outputs

relationship to the inputs

Customer Outputs

CTQs


CTQ, Defect and Metrics

• After the CTQ and definition of defect is complete the next step is to identify the corresponding process output metrics or Ys (often called key process output variable - KPOV)

• Similar to CTQs, there can be a number of levels of KPOVs

• KPOVs are used to measure if the project has made an impact on CTQs

• KPOVs are tracked before, during and after the project


CTQ, Defect and Metrics

• In projects KPOVs are typically outlined on 3 levels: Business Level

Strategic metric; describes the impact the project will have on the organization

Usually in $$$

Operational LevelUsually corresponds to the customers high level CTQQuantifies the primary defect

Process (Project) LevelThe scope version of the CTQ that is the primary indicator

whether the project is successful or not


Exercise - Voice of the Customer

1. Split into groups of 5

2. Each group receives a box of animal crackers and a worksheet

3. As a group, open your box of animal crackers and remove several crackers

4. As a group, record a Critical to Quality (CTQ) statement

5. Each group will then inspect the other groups animal crackers according to the groups definitions

6. What would the definition of a defect be?

7. What would be examples of a business, operational and process level KPOVs?


Catapult Define Phase

1. What are the CTQ characteristics in the Lean Catapult?

2. What would the definition of a defect be?

3. What would be examples of a business, operational and process level KPOVs?

1 © visteon corporation gb-mod #7 rev 3.6 10/03 define phase gb module #8

Documents

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visteon corporation

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