TLIM 4342: Chapter 3 - Other Process Improvement and Quality Methods /// The Measure Phase Part 1

Steps in creating Flowcharts

1. Define process to be diagrammed 2. Identify process boundaries (i.e. start/end points) 3. Discuss/determine level of detail to be ascribed in diagram 4. Determine process steps 5. Arrange process steps in proper sequence 6. Draw arrows to show process flow 7. Review flowchart for accuracy/completeness

Best Practices for Histogram

1. Display data in bar graph form (with all bars the same color) 2. Describe the count of frequency/occurrence on y-axis 3. Depict the data values on x-axis (in appropriate number of "bins" so you can see the shape of the data) 4. Include appropriate descriptive statistics along with histogram (average/mean, standard deviation, range, minimum/maximum)

Best Practices for Run Charts

1. Display data in line graph form (with all data points/line the same color) 2. Describe process management on y-axis (with units clearly specified) 3. Depict time (sequential order) on x-axis 4. Include a center line (mean or median)

Best Practices for Pareto Charts

1. Display data in prioritized bar and line graph (with all bars same color & all data points/line the same color) 2. Describe categories (names of bars) through brief statements on x-axis 3. Depict frequency of occurrence on left y-axis 4. Indicate cumulative percentage of occurrence on right y-axis

Successful Total Quality Management (TQM) Initiative require 8 key elements:

1. Ethics 2. Integrity 3. Trust - The foundations for quality 4. Training 5. Teamwork 6. Leadership - The bricks by which quality is built 7. Recognition - The roof that covers everything 8. Communication - The mortar that binds everything together

Rummler-Brache approaches improvement in six phases:

1. Improvement planning 2. Definition 3. Analysis and Design 4. Implementation 5. Management of process 6. Processes are turned over to daily teams

Tollgate Checklist for Measure Phase

1. Team has agreed upon key measurements and came up with a baseline measurement of process performance. 2. Identified and corrected any issues that might contribute to analysis errors. 3. Calculated process variation and sigma level. 4. Conducted appropriate sampling. 5. Sponsor or champion has reviewed and signed off on all elements of the measure phase.

3 Main Phases of Scrum

1. The pregame - Development teams analyze data and business requirements, using the information to come up with the concept for the new product or upgrade. 2. The game - Teams begin to develop the product via programming sprints - smaller phases of development that are completed in sequence, usually with a review and validation of the work before moving on the the next sprint. 3. The postgame - Quality assurance, testing, change management procedures. Quality preparation for product relese is also handled.

Best Practices for SIPOC Diagrams

1. Use a 5-column format 2. Has approximately 5-10 process steps listed 3. Contain high-level (not detailed) lists in each column 4. Provide descriptions of each element that address useful questions

Best Practices for Flowcharts

1. Use basic types of symbols (ovals, boxes, diamonds) 2. Clearly identify start/end points 3. Flow from left-to-right and top-to-bottom (as much as possible) in a simple path (i.e. minimize crossing arrows) 4. Describe process steps through brief statements/yes-no questions

When should you use Six Sigma?

1. When facing the unknown - Cause of the problem, or even the exact problem itself, is unknown. 2. When problems are widespread and not defined 3. When solving complex problems 4. When costs are closely tied to processes

Tools and Techniques for Measure Phase (DMAIC)

Flowcharts Baseline Measurements Graphical Methods

What is the first step in creating a SIPOC diagram?

Identify the process steps.

What was one of the biggest advantages of the TQM (Total Quality Management) mentality that changed businesses?

It began to force organizations to see themselves as one entity rather than a number of loosely related entities or departments. Prior to TQM, many organizations were run via heavily isolated departments. It helped organizations realize that they are only as strong as their weakest elements. Business leaders started to see companies as a series of linked processes operating toward a single end goal.

Purpose of the Measure Phase

Map the Process - Document process steps in enough detail to help team understand and analyze process. Establish a baseline measurement - Obtain data that quantifies problem/process performance at start of project.

The purpose of the Measure phase of a Lean Six Sigma project is to:

Map the process and establish a baseline measurement.

Total Quality Management (TQM)

One of the first formal process improvement methods of improving quality and removing errors through a continuous process enacted in business environments in the U.S. It served as an essential stepping block to current improvement and quality methods such as Six Sigma. Involved requirements such as: - Systems that let organizations make improvements and monitor quality - Strategic planning that takes quality improvement into account when making long-term decisions - A reward and recognition structure to promote quality work for employees

Which symbol is typically used to denote the starting/ending point of a flowchart?

Oval

Three Common Phases of BPR

Planning - Process mapping, look for opportunities of improvement, brainstorm new architectures for processes. Design - Validation techniques 3, build tools and programs to integrate the changes, sometimes teams use Scrum methods. Implementation - Since changes are often programmatic in nature, implementation usually includes a rigorous change management and testing procedure.

What is the last step in creating a flowchart?

Review the flowchart for accuracy/completeness.

Which tool is typically used to depict a high-level snapshot of key process elements?

SIPOC diagram

How is Lean Process Management similar to Six Sigma?

They are both concerned with continuous improvements. They are both centered around an overall culture of quality rather than a single quality event.

How are SIPOC Diagrams and Flowcharts related?

You can use SIPOC diagrams to create flowcharts. Flowcharts will be more detailed, typically having a minimum of 3-4x more process steps than the SIPOC diagram.

Pareto Chart (+what phase?)

a combination of a bar and line graph that prioritizes identifying potential causes or sub-causes of a problem. Used in the Measure phase of DMAIC. Identifies the "vital few" from the "trivial many" Uses the 80/20 rule - 80% of the problem is due to 20% of the causes

Histogram (+what phase?)

a graphical summary of numerical data that displays the frequency distribution in bar graph form. Used in the Measure phase of DMAIC.

SIPOC Diagram (+what phase?)

a high-level (general, not detailed) flowchart that captures a snapshot of key process elements. Used in the Measure phase of DMAIC. Suppliers - Who supplies the process inputs Inputs - What materials, people, information, is needed for the process to work Process - What is generally done to convert inputs to outputs Outputs - What materials, information is produced from the process. Customers - Who uses/benefits from the process outputs

Run Chart (+what phase?)

a line graph that monitors process performance over time (analyzes trends/patterns). Used in the Measure phase of DMAIC. Vertical axis: Process measurement Horizontal axis: Time

Lean Process Management

a process improvement methodology focused on reducing/eliminating waste through a continuous process. - Can be combined with Six Sigma (reducing defects) to create Lean Six Sigma.

Business Process Reengineering (BPR)

a process improvement methodology less concerned with incremental quality wins (such as with Lean, Six Sigma, and TQM) and more concerned with a radical change across an entire organization or process architecture.Itisnotacontinuousprocesstechnique - More concerned with the technical processes that occur throughout an organization. - BPR organizations have to rely heavily on both inside (programming, integration, troubleshooting) and outside (consultants, programmers, developers) technical resources. - Usually very costly and therefore only deployed when confronted with exponential gain or when current processes are obsolete or badly broken.

JumpStart

a process improvement program that entails a fast-paced method for identifying problems and solutions in a single session. - Can be used within almost all other methods (Six Sigma, Lean, TQM, CEM) as a way to spark discussion regarding processes or to identify possible solutions. - A leader and a team of employees who know the problem spend several hours brainstorming root causes and coming up with possible solutions. - Teams should not use this method to enact sweeping changes or attempt to improve processes that could seriously impact customer experience. - Advantage: lets teams create and implement small-scale solutions quickly, often providing problem resolution the same day. - Disadvantage: changes are sometimes made on a wait-and-see mentality, which is dangerous for department or enterprise-wide processes.

Customer Experience Management Method (CEM)

a process improvement program that, like Rummler-Brache, was created to address needs in organizations outside of manufacturing. - Combines some process improvement tools with customer relations management. - Takes an outside-in approach to process improvement, focusing on what the customer wants or needs and how each process in an organization serves that need. - The advantage of CEM is that organizations are able to deploy customer-facing tactics across the enterprise, which often results in enormous gains in customer satisfaction, loyalty, and spending. - The disadvantage of CEM is that departments such as human resources, legal, and accounting have difficulty implementing customer-focused cultural change.

Scrum

a project development method specific to Agile programming endeavors in technical departments. Scrum is used when teams want to create new technical products or integrate new developments on existing products within a short time frame. Commonly last between 2-4 weeks. Three main phases: - The pregame - The game - The postgame

Rummler-Brache

a proprietary process improvement program created from implementing bits and pieces of Lean and Six Sigma elements. - Pioneered in the 1980s by Geary Rummler and Alan Brache. - The method seeks to affect positive change in processes and organizations by using a set of practical tools to address business issues and process problems. - Created to address needs in organizations outside of manufacturing - Created the Nine Boxes Model.

Baseline Measurements (+what phase?)

data that quantifies a problem at the start of an improvement project. Used in the Measure phase of DMAIC. Data measures current process performance. Typically depicted using one or more of the following tools: - Histogram - Run chart - Pareto chart

Flowchart (+what phase?)

depicts sequence of steps in a process. Used in the Measure phase of DMAIC. Helps teams develop common understanding about process flow Generic tool, easily adapted for many purposes. - Training aid/work instruction - Foundation for conducting process analysis

Descriptive Statistics (+what phase?)

facilitates understanding of a data set. Used in the Measure phase of DMAIC. It reveals information about: - Central Tendency (average/mean, median, mode) - Spread/dispersion/variation (standard deviation, range, etc.) - Shape

Check Sheets (+what phase?)

generic tool for counting and accumulating data. Used in the Measure phase of DMAIC. Structures data collection process Supports data analysis