six sigma green belt training part 18 by skillogic

Six Sigma – Green Belt Training

© 2016 Skillogic Knowledge Solutions. All Rights Reserved

Part 18

2

Value Analysis

Notes on Value enable work:Value enable work is the category which confuses the most. The only distinguishing factor between non value add and value enable work comes from customer’s perspective where customer is definitely not ready to pay for non-value added work. Given the current condition of any given process we might not be able to take out the value .enable steps from the process. They aid in delivery of product and services.Indicators of non value add in the process: Approval process involves multiple departments Too many supervisors Multiple reportingTypical non-value add is rework. Which is a process step repeated, a step which usually takes you back in the process. E.g. Defect caught in downstream step being sent to upstream step in process.

Analyze Six Sigma – Green Belt Training

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Types Of Non-Value-Added Work

Process failures: • Failures happen two ways, Internal and External. Internal refers to defect found during processing due to upstream process and being corrected. E.g. Rework• External failure are the defects reported by customer.Inspection(Quality Check): • Internal process step dedicated to check products/ services for defects.Wait/ Delay: • Products/ services waiting or queuing to get processed in front of process step. It isinventory building in front of a process step. It is usually due to bottlenecks. E.g. BacklogsSetup / Initialization: • Steps involved in setup or preparation of subsequent step. E.g. Changing settings of machine in manufacturing plantInventory Movement:Physical movement of inventory from one point of processing to other point of processing.


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Workflow and Time allocation

While analyzing workflow for a process one needs to go at product/service unit level and track theflow of that identity. This is very detailed process map with time allocation with each small step. Inthe process we categorize process step into value add, non value add and value enabling.

Concept of time allocation in process:Cycle TimeTotal time spent from start point of process to end point of process. It is also important to look atthis metric from customer point of view. E.g in call centre the average wait time for call might be60 seconds but customer might be going through longer wait due to IVR, which we don’t capture.Process TimeIt is the actual spent on any unit of service or product which goes through the whole process.(Note: this also includes steps which are non value add).Wait / Delay Time:Total idle time spent by any product or service while going through process steps.


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Workflow: Disconnects in Process Steps

Unclear work responsibility Unclear processing requirements Redundancies Tricky handoffs between process steps Conflict in job goals

Process disconnects more often than not lead to delay and wait time in the process. It also leads to rework or resource under utilization.

Most of the disconnects arise due to following reasons: Unclear work responsibility: Happens when a process step is not owned by a particularperson. The processing such environment happens in a very ad hoc manner leading to delay. Unclear processing Requirements: Operational definitions for process step do not exist. This might lead to rework due to defects caught in later process steps. Redundancies: When one process step is duplicated amount two or multiple processors. This happens when one processor is unaware of other processor working. Tricky Handoffs: Work transfer from one person or step to another step or person without any operational definitions in place. Leading to delays or rework. Conflict in Job goals: When the job goals are overlapping or do not cover completeprocessing involved leading to conflict or incomplete work.


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Analyzing Workflow: “Track the unit flow”

Cycle time is the total time taken from the point at which the customer requests a good or serviceuntil the good or service is delivered to the customer.

The components of cycle time are processing time, inventory movement time, inspection time, wait time.

Cycle time metric should always be seen with caution. Lot of times we might just look at one part ofprocess which might be working at its best. But when the customer might think otherwise as youmight have another process step having lot of delays. The customer always looks at total cycle time.


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Value Analysis

Usually, a majority of the time is spent in Non Value add or Value Enabling work


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Value Analysis

Value analysis breaks the process into small steps categorized into value add and non value add. When we put our cycle time analysis against value analysis it gives tremendous insight into improvement opportunities. It tells exactlywhere we spent maximum time in process and whether or not it is value added work.It is an eye opener exercise to understand the process, we might come the data where non-value added work adds to maximum in cycle timeNote: We might come across a situation where for a process step we may not have any data available. In such ascenario it is best to estimate time than skip the step.Conclusion: Example4 steps (<25% of total steps) provide 100% value and take 24 minutes or 5% of total cycle time.14 steps (>75% of steps) are non-value-added, and consume 95% of cycle time.How to Interpret the Matrix:Look for the longest cycle time component. Is it a value-added step? If not, can you still reduce time? Look for frequent category of non-value add steps in your process?. They might be driven due to things outside process.Look for overall breakup of cycle time into value add, value enable, and non-value add. This might give overview ofimprovement opportunities.


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Histogram

Tool Utility:Study variation in process. Gives visual display of data distribution as bar graph(frequency graph). Useful tool to determine if distribution is centered aroundtarget, and how is the variation against the customer specification limits.How:Minitab.Histogram can also be made using excel sheet. In order to do so:- create a frequency table with or without defined classes(e.g. age 10-20, orwithout classes 10, 11 etc.)- Plot the frequency against individual X values or Classes on X-axis.


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Histogram –Minitab

Click on Graph > Histograms MINITAB FILE: DescriptiveStats.mtw1.Click on ‘Simple’2.Click Ok


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Histogram Output

Histogram is the graphical representation of the distribution of population plotted. It helpsunderstanding following for any given population:

• Shape: Look for the distribution of bars. Are there multiple modes in thedistribution?. This might give us idea if the given data is mix of two or more differentpopulation sets.

• Center: Where is the distribution centered?. Is it off the process target?

• Spread: How is the spread of bars in histogram?. Is the spread large compare torequirement?(look against the specification limits). Note that spread has got nothingto do with Normality of data, as you might have normal data with very large spreadwhen compared against specification limits from customer.The options at the bottom of histogram input window gives option to put specification limits.


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Six Sigma – Green Belt Training

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six sigma green belt training part 18 by skillogic

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