Observation paper
The value of this course is fully achieved when students are able to find application in real-life settings, whether academic, professional, or personal. Students will submit five (5) written observations about how they saw a principle from class applied in their life (academically, professionally, or personally). This is NOT a research paper. Points will be deducted if this is simply a repeat of something you found on the internet. Each observation must be at least page in length (approximately 1500 characters). Each submission will be graded with a score of 0-10.
Stakeholders, A3,
Voice of Customer
and Value Stream Mapping
Session 5
1
2
How Will You Communicate?
The best way to identify and communicate with your team, key stakeholders and event champion is to answer questions such as:
Who is your audience?
What is the tool or media you will use to communicate?
What is the purpose of your communication?
What are your key messages?
Who is the owner of the communications task?
What is the timing and frequency of the communications?
GREEN BELT
2
Instructor Guide
Published Date
3
Development of a Communication Process
Effective Communications
Must have the following characteristics:
A consistent formal process
Simple and understood by all
Contain current information
Have a feedback loop built into the process
Will help:
Build and maintain trust
Prevent rumors
Enlist and enroll the participation of employees in the pursuit of achieving objectives
GREEN BELT
3
Instructor Guide
Published Date
4
Communication Plan Development
1. Determine audience and media to be used
2. Complete a Stakeholder Analysis
3. Complete a Communication Plan
GREEN BELT
4
Instructor Guide
Published Date
5
1. Determine Audience and Media
Executive Team Managers Administration
Risk Management Sales Marketing
HR Consumer Relations Engineering
Finance Legal Customers
Salaried Hourly Marketplace
South America Distributors Europe
Asia North America
Identify the various audiences you will need to communicate:
Identify the media by which you will communicate to the groups above:
Voice Mail Formal Presentations Posters
Memos Oral Communication E-Mail
Elevator Speech
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5
Instructor Guide
Published Date
INOTE: Ask where is the audiences source document
6
2. Complete a Stakeholder Analysis
For each Stakeholder identified, determine:
Are they critical for development of project tasks (Enabling Stakeholders) or critical for the successful implementation of a solution (Implementation Stakeholders)?
What concerns can you anticipate for each Stakeholder?
What positive outcomes exist for each Stakeholder?
What will be your message for each Stakeholder?
A Stakeholder Analysis should be completed/revised as critical aspects of the project change (I.e. scope changes, solution options become more visible, etc.)
A Stakeholder Analysis can be a sensitive document and is intended for internal team use only.
GREEN BELT
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Instructor Guide
Published Date
7
Example Stakeholder Analysis
GREEN BELT
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Instructor Guide
Published Date
Example: Stakeholder Analysis
Team Lead M H + ON-BOARD 6 MONTHLY UPDATE
Engineering Dept. Head H H – DEFENSIVE 9 SEPARATE BRIEF & FOLLOW-UP
Program Manager M H + ON-BOARD 6 WEEKLY UPDATE (E-MAIL)
Comptroller L L 0
UNKNOWN
4 TOLLGATES
Contracting Officer
H M 0 WAIT & SEE 7 WEEKLY FACE-TO-FACE
Prime Contractor H L + ON-BOARD 5 INITIAL/
MONTHLY
Stakeholder
Name/Group
Project Impact
On Stakeholder
(H, M, L)
Stakeholder
Level of
Influence on
Success of
Project (H,M,L)
Stakeholders
Current Attitude
Toward Project
( +, 0, – )
Explanation of
Current
Stakeholder
Attitude
(list)
Stakeholder
Score
(H=3, M=2, L=1,
+=1, 0=2, -=3)
Action Plan
For
Stakeholder
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Instructor Guide
Published Date
3. Complete Communication Plan
Comes in many forms, but key elements include:
Target of communication
Frequency of communication
Media to be used
Be specific:
Example 1: A 30 minute verbal conversation, every Friday at 4 p.m., including topics
Example 2: A weekly written update, to be completed by Friday end-of-day, to include, a) Activities completed this past week, b) activities to be completed next week, c) currents risk to on-time, on-budget completion, and d) action plan to resolve risks.
Revise, as necessary, as project matures.
Especially important to revise/update for project implementation
Obtain verbal agreement on each plan element from target of communication.
GREEN BELT
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Instructor Guide
Published Date
Communication Plan (Example)
Each DMAIC
Phase
As Needed
GB
Project
Schedule
Expected
Outcomes
Report
Progress
Barrier
Removal
E
–
mail With
Attachments
Exec
Sponsors &
Deployment
Champion
Kick
–
off
After M and
I
Project
Sponsor
What
Progress
Awareness
Buy
–
in
E
–
mail
All Hands
Monthly
Team
Leader,
Green Belt
Support
Needed
Status
Buy
–
in
Solicit
Feedback
Briefing
Project
Sponsor
Briefing
E
–
mail
Support/
Remove
Barriers
Weekly
Team
Leader,
Green Belt
Team Status
Expected
Outcomes
Affected
Functional
Managers
Each DMAIC
Phase
As Needed
Project
Schedule
Expected
Outcomes
Report
Progress
Barrier
Removal
E
–
mail With
Attachments
Exec
Sponsors &
Deployment
Champion
Kick
–
off
After M
I
Project
Sponsor
What
Progress
Awareness
Buy
–
in
E
–
mail
All Hands
Monthly
Team
Leader,
Green Belt
Support
Needed
Status
Buy
–
in
Solicit
Feedback
Briefing
Project
Sponsor
Briefing
E
–
mail
Support/
Remove
Barriers
Weekly
Team
Leader,
Green Belt
Team Status
Expected
Outcomes
Affected
Functional
Managers
Audience
Audience
Audience
Audience
Media
Media
Media
Media
Purpose
Purpose
Purpose
Purpose
Topics of
Topics of
Discussion/
Discussion/
Key Messages
Key Messages
Topics of
Topics of
Discussion/
Discussion/
Key Messages
Key Messages
Owner
Owner
Owner
Owner
Frequency
Frequency
Frequency
Frequency
Notes/Status
Notes/Status
Notes/Status
Notes/Status
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Instructor Guide
Published Date
End Section 1
11
A3 Introduction
A3
Letter
A Toyota-pioneered practice of getting the problem, the analysis, the corrective actions, and the action plan down on a single sheet of paper
Standardizes a methodology for planning and problem-solving. Gives structure to process improvement projects.
From launch to completiona living document that changes as the project progresses
Prepared by individuals, teams, or any leader. A benefit to executives and managers at all levels. Used wherever there is a need for people to work together to get clarity on a problem or proposal and then to create a set of realistic and effective countermeasures.
A3
What
Why
When
Who
Stakeholders/Team
Who has a vested interest in this project? Who cares if the process improves?
Who has to buy-in? Individuals? Teams? Managers? Customers?
Who uses this process?
Scope
Team consensus on the start and end point
Keep the team focused on the goals and objectives
Used to prevent scope creep
Background
What are the elements/history behind the current condition.
Why would this project be important?
What is happening within the process?
Problem Statement
A simple statement of the core issue/problem.
Be careful not to include solutions or conclusions.
Be careful not to ascribe blame and not to identify potential root cause
Good problem statements include:
What is the problem or opportunity for improvement (what)?
Where is the problem. Is it in your workplace or someone else’s (where)?
How long has it been happening (when)?
What is the extent of the problem (extent)?
How large is the impact of the problem (impact)?
It takes too long to process a new account and mistakes are common.
The new account set up process for ABC Bank takes in excess of 30 days. The problem has existed for the past year. 85% of the new account paperwork require rework due to missing information. This has resulted in the cancellation of 15% of the contracts over the last 6 months.
WHAT
WHERE
WHEN
EXTENT
IMPACT
Example of a better opportunity or problem statement.
Example of a bad opportunity or problem statement.
Examples of Problem Statements
Goals & Objectives
What good looks like. The purpose for which this project exists (be specific)
How will we know when the project is complete?
SMART: Specific, Measurable, Achievable, Relevant, Time bound
Analysis can include any discovery data:
VSM
Fishbone
Time Studies
Financial Analysis
5 Whys
Spaghetti chart
Productivity calculations
Waste
Risk
Volume
Project Cost/Savings (Hard, Soft, Intangible)
Analysis
Contains analysis to substantiate both the reality of the issue and the validity of possible countermeasures.
Inclusion of visual analysis is encouraged
Plan
A mini project plan; or a short description of how the project will be handled.
Who does what and when.
Countermeasures
Activities put into place to mitigate the effects of the problem.
Some countermeasures will be more effective than others. For iterations during Do/Check, this can include a history of countermeasures that have been implemented.
End Section 2
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My Voice
Voice of the Customer (VOC)
What is VOC?
Why is VOC critical?
How is VOC data gathered?
How is VOC data analyzed?
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GREEN BELT
21
Im a
Customer
Who Are Your Customers?
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Im a
Customer
External Customers
Those persons or organizations which purchase your products or services
Internal Customer
Anyone who receives an output of your process
GREEN BELT
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How Well Do You Know Your Customers?
When a customer is not satisfied:
1%-5% complain to management or headquarters
45% complain to agent or company representative
50% do not complain at all
Reference: Young, John. Lost in Translation, ASQ Six Sigma Conference, Palm Springs, 2005.
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Customer complaints
Warranty issues
Surveys
Direct contact
Focus groups
Competitors
SIPOC Process Flow
GREEN BELT
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If we do not understand the customers needs, then it is generally not possible to satisfy the customer.
Applies to both external and internal customers!
Reactive
Proactive
Capturing Voice of the Customer (VOC)
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Complaints
Customer Service representatives
Focus groups
Surveys
Competitors
SIPOC
Customer Voice
Translate
Customer Requirements
Measurable
Needs vs. Wants
GREEN BELT
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Translating VOC into Requirements
Good customer requirements:
Are specific and measurable (and the method of measurement is specific)
Are related directly to an attribute of the product or service
Dont have alternatives and dont bias the design toward a particular approach or technology
Are complete and unambiguous
Describe what, not how
I hate filling out this form! The form takes too long to fill out The form takes less than five minutes to complete
Voice of
the Customer
After Clarifying,
the Key Issue(s) Is…
Customer(s) Requirements
TOPS – Powered By People
25
Diagnose VOC before prescribing requirements
GREEN BELT
25
Actual Customer Statements and Comments The Real Customer Concerns, Values or Expectations The Specific, Precise and Measurable Characteristic
I want to talk to the right person and dont want to wait on hold too long Wants to talk to the right person quickly No additional menu items on voice system
Customer reaches correct person the first time within 30 seconds
This software package doesnt do squat The software does not do what the vendor said it would do Every design feature needed is built into the package
The software is fully operational on the customers existing system
Customer Requirement
Key Customer Issue
Voice of Customer Input
Translating VOC Into Customer Requirements
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SIPOC Diagram
SIPOC is a tool that depicts the entire flow of a process from suppliers to the customer. SIPOC is an acronym for each of the columns in the diagram:
Suppliers: the internal / external people or organizations that provide materials, information, or other resources for a process.
Inputs: the resources that are supplied.
Process: the series of work steps that transform inputs to outputs.
Outputs: the product, service, or information that is delivered to the customer.
Customer: the people, organizations, or process that receive the output. External and Internal Customers.
The last column on the tool allows for the input of the customers critical to quality requirement for the process flow.
Suppliers Inputs Process Outputs Customer Critical to Quality
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SIPOC Diagram
28
Inputs are the resources that are required to create outputs.
Process input quantify cost, quality, and speed at various points in the process:
Labor hours
Errors
Rework
Task time
etc.
Outputs
Tangible products or services.
Identifies metrics that gauge process performance.
Linked to the CTQ measures as defined by the customer.
PROCESS
29
Suppliers Inputs Process Outputs Customer Critical to Quality
End Section 3
30
Value Stream
The entire set of activities running from raw material to finished product or service seeking to optimize the whole from the standpoint of the final customer
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Link the value to the Customer what is important to the Customer
What & Why of Value Stream Mapping
A visual tool of flow of Material and Information
Physically observing the process area in question
A map of all actions currently required to deliver a product/service
Includes all Process Owners
Three phases of VSM:
Current State
Ideal State
Future State
WHAT
WHY
Focus on improving the whole process and not optimizing silod pieces of the process
To help understand how your business actually works (you dont understand the current process if you cant draw it).
Discover 8 Types of waste :
Defects/Rework
Overproduction
Waiting
Non-utilized Creativity
Transportation
Inventory
Motion
Extra Processing
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Major difference from other maps VSM includes INFORMATION flow
Physical map is large and allows for multiple folks to touch and see the flow. Usual questions from the audience does this really happen? Why do we do this? The process opens the eyes of all stakeholders.
Value Stream Mapping (VSM)
Create current state value stream map
Identify opportunities for improvement (Kaizen stars)
Prioritize opportunities using priority matrix
Create ideal state map
Create future state map
Create plan to get to future state
How
What is the difference between a flow chart and a value stream map?
Layout the process in excruciating detail
Use multiple viewpoints
Typically leave out the manager. (Why?)
Purpose of a VSM:
To visually identify the 8 wastes
Identify VALUE ADDED vs. NON VALUE ADDED WORK
See opportunities for improvement
Use the current state to create a new future state (Why?)
Can use electronic or paper
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VSM Example
Walk the Process
Visualize yourself in the place of the product / information
Walk the entire process
Interview personnel who touch the process (look for problems that may be occurring)
Measure people and/or product travel distances
Look for constraints in the system (shared resources)
Look for 8 types of wastes
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Value Added
Goals of Value-Added Analysis
The objective is to:
Eliminate the hidden costs that do not add value to the customer
Reduce unnecessary process complexity, and thus errors
Reduce the process cycle time
Increase capacity by better utilizing resources
Focus efforts in the right waste-removal places
Value Added
Waste
Value Added
Waste
Waste
Value Added
Value Added
Value Added
Value Added
Lean: Value Stream and Non Value Example
GREEN BELT
36
Any step or activity in a process is considered VALUE ADDED (VA) if it meets ALL of the following:
What is Value Added (VA)?
Value Added
TOPS – Powered By People
37
The Customer is willing to pay for the activity/step.
1
If the Activity/step actually changes the form, fit, or function of a product or service
2
If it is done right the first time (does not create rework)
3
GREEN BELT
37
Value Analysis
Value Added
Non-Value Added
NVA
(but necessary)
Value Added (VA)
Activities that change form, fit, or function of a product or service
Activities the customer wants to pay for
Activities done right the first time
Non-Value Added (NVA)
Activities that do not change form, fit, or function
Activities that fall under any of the eight forms of waste
Activities not performed right the first time
Non-Value Added, but necessary (NNVA)
Activities causing no value to be created but which cannot be eliminated based on Regulation, Compliance, & Law.
Be stingy with NNVA designations! Require proof that a step is required
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Define value added and solicit the class for examples of value added activities they perform or have seen
A good question to ask when trying to determine if something is value added, especially in transactional processes, is If I were the Customer, would I be willing to pay for this?
(mouse click)
Define Non-value added and solicit the class for examples of non-value added activities they may perform or have seen or experienced
Labor recording
Inspections
Define waste (needless activities that consume resources but dont add value to the product) and solicit the class for examples of waste
Examples of Non-Value-Added
Long set-up time
Incapable process
Poor work methods
Lack of training
Lack of organization
Layout
Irrelevant performance
measures
Redundant systems
Incomplete information
Functional handoffs
Batch processing
Unnecessary data
Transportation
Approvals
TOPS – Powered By People
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NVA activities account for 50%-90% of product cost
People are not NVA, tasks are
NVA does not mean unimportant
Dont take it personally!
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39
A More Traditional LEAN VSM
Phases of the Value Stream Map
How the process works today. No optimization or improvement.
Significantly Improved process that solves many current problems and waste
How could the process work ideally without any limitations or restrictions?
Current State
1
Ideal State
2
Future State
3
Relentless Pursuit of Perfection
Picture your value stream with no waste
Create flowchart using only the Value-Added steps
No stops, piles, backups, wait time, parallel paths
Assume that anything is possible
Ideal State VSM
TOPS – Powered By People
42
GREEN BELT
42
Visual of improved material and information flow
Unites Process Improvement concepts and techniques
Used to drive detailed implementation plans
What type of improvements are needed and why?
What is a Future State Map ?
GREEN BELT
43
NARRATIVE:
Just like a Current State Map only assume improvements have been made. Visualize the best or how you need the process to perform
If you dont create a future state map and put a plan in place to achieve it, your current state mapping efforts were likely pointless
Creating a Future State Process
Taking into account the current organizational readiness, create a future-state recommendation that:
Proposes specific process improvements
Documents what the new state will look like
Identifies additional process controls and measures
Outlines a roadmap to move the process to the proposed state.
Additional thoughts on the Future State
To streamline the current-state business process, use analysis from improvement tools and consider these areas:
Value-Added Assessment
Duplication Elimination
Simplification
Cycle Time Reduction
Error Proofing
Standardization
Reducing process lead time
Reducing inventory
Cost reduction
Increasing available capacity
Decreasing the area footprint
Bureaucracy Elimination
Supplier Partnership
Automation, Mechanization, and Information Technology.
Class Exercise:
Create a Current State Map including VA, NVA & NNVA.
Create Ideal and Future State Map
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46
Value Added
Non-Value Added
Walk to LS
10
5 sec
Turn on LS
0
2 sec
Walk Back
10
5 sec
Non-Value Added
Value Added
Non-Value Added
Clap to turn on LS
0
2 sec
Value Added
GREEN BELT
47 Types of Business Processes
Process Maturity
What is Process Modeling?
Different Perspectives
4
What if we were asked to create a model without training?
5
What is BPMN?
6
BPMN = Business Process Model & Notation
What is BPMN?
Why BPMN as Modeling Language?
Why Should we Model Processes?
Benefits of Process Modeling
1. Pictures are worth 1000 words. If you use charts, graphs, and other images, you will easily save yourself the trouble of writing up dozens of pages of information on the processes that need fixing and the data that youve collected. Pictures will serve you much better than a 50 page report in every single instance.
2. Process improvement is easier done when it can be analyzed through process mapping. Identifying issues and changing processes is much easier because you can pinpoint exact places where changes need to happen.
3. Visualizing processes makes the problem clearer from the start. Process maps make inefficiencies in the work flow readily obvious. Often, those inefficiencies come to light before you’ve even completed the map. By creating and tracking paths on the flow chart, you can see where problems and delays occur. Moreover, creating maps forces you to break processes into smaller components. Doing that makes it easier to clearly identify problems, the first critical step toward solving them.
Benefits of Process Modeling
4. Employee Involvement. It’s a wise idea to involve employees at every level and from every department when creating a process map or flow chart. By doing so, you gain valuable input that you might otherwise miss and give employees a chance to take ownership of the process. With their input, your chance for success improves. Additionally, involving employees becomes a morale booster.
5.Training can be more effective through visualization. You can have someone read a 500 page book on Six Sigma. You can tell them everything that they need to know, and make them write notes to keep track. They still wont remember as much or understand the practical application until they have a visual example to help them understand how things work.
BPMN Overview
12
Basic Diagram Elements
13
14
Pools and Lanes
Activities
15
Events
16
Start Events
17
Intermediate Events
18
Intermediate Events (Normal Flow)
19
Intermediate Events (Attached to Boundary)
20
End Events
21
22
Gateways
Exclusive Gateways
23
Exclusive Gateways, Based on Data
24
Exclusive Gateways, Based on Event
25
Inclusive Gateways
26
Complex Gateways
27
Parallel Gateways
28
Connectors
29
Sequence Flow
30
Message Flow
31
Artifacts
32
Library Book Lending Process
http://www.brsilver.com/2011/02/26/bpmn-method-and-style-an-example/
Ordering and Delivering a Pizza
http://www.omgwiki.org/bpmn2.0-ftf/doku.php?id=public:sub-teams:examples
35
Sample Process
36
Sample Process
Sample Process Incident Manager
For a software company, heres the incident support process:
Incident process is triggered by a customer requesting help from her account manager because of a problem in the purchased product. The account manager should try to handle that request on his own and explain the solution to the customer, if possible. If not, the account manager will hand over the issue to a 1st level support agent, who will hand over to 2nd level support, if necessary. The 2nd level support agent should figure out if the customer can fix the problem on her own, but if the agent is not sure about this he can also ask a software developer for his opinion. In any case, at the end the account manager will explain the solution to the customer.
37
Sample Process Incident Manager
38
Customer
Sample Process Hardware Shipment
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Interview notes with Clerk:
First thing, I have goods that need to be shipped. I always give the goods to the warehouse worker to be packaged. While the goods are being packaged, I make a decision about if goods require special shipment or if normal post is okay. If normal post is okay, I check if extra insurance is necessary (insurance is automatically included with special carriers). If extra insurance is required, I ask the Logistics Manager to take out the insurance. Whether or not we get extra insurance, I need to fill out the post label for normal post. If special carrier is required, I first request quotes from various carriers. I choose a carrier and prepare the paperwork. I give the paperwork from the normal post or the special carrier to the warehouse worker. Thats pretty much all I do.
Interview notes with Warehouse Worker:
The clerk brings me goods that need to be shipped. I package the goods. I cant do anything else with that order until the paperwork is received for shipping. I combine packaged goods with paperwork and move package to the pick up area.
Interview notes with Logistics Manager:
Basically, if the Clerk requests extra insurance for a package going with normal post, I take out the insurance. Thats it for me. Very simple.
Sample Process Hardware Shipment
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BPMN Templates for MS Visio
If you are using MSVisio, consider installing BPMNVisiostencil. There are several options if you Google BPMNVisioStencil”.
For example, register (free) and download a “BPMNstarter kit” from the following site:
http://www.orbussoftware.com/downloads/
visio
-starter-packs/
bpmn
-20-starter-pack
41
