Introduction to Lean Six Sigma

Yellow Belt Training

Session One

28/03/2019
 28/03/2019
Cheryl Phillips
Confidential

What have you heard about Lean Six Sigma?

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 28/03/2019
CI Vision – The Culture Change… Cheryl Phillips
Confidential

The Vision…
“Empowered People Operating in a Culture and
a Climate of Creativity and Innovation.”

Continuous Elimination Of Waste and Variation in Processes

Reduce Cost & Increase Efficiency

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Course Objectives 28/03/2019
Cheryl Phillips
Confidential

▶ Objectives:
– Increase overall understanding of the Lean Six Sigma (LSS)
methodology and tools that support the methodology
– Provide an overall understanding of basic process improvement
tools and techniques used to drive continuous improvement
initiatives
– Enable participants to use those process tools and
methodologies to drive continuous improvement efforts
– Enable participants to participate fully on LSS project teams
▶ Outcomes:
– Utilization of process improvement tools to assist in the
facilitation and support of continuous improvement initiatives
– Yellow Belt Certification

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 28/03/2019
Who will benefit from this course? Cheryl Phillips
Confidential

▶ Anyone who is responsible for figuring out "what went wrong",

looking for root causes to problems and implementing new processes
▶ Lean Six Sigma project team members

Note: This training is designed to assist in driving Continuous Improvement

for small/mini process improvements (solutions may not be known).

Projects that are larger in scope will need to go through the entire Lean Six
Sigma DMAIC (Define Measure Analyze Improve and Control) methodology.

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Certification Requirements Cheryl Phillips
Confidential

▶ Option 1:
– Completion of the required Yellow Belt training curriculum
– Completion of one small/mini process improvement project
– utilizing 1 or more tools from Yellow Belt training
– Recording of your mini-project in the GCSIR tool
– Completion of a one page Success Story Document

▶ Option 2:
– Completion of the required Yellow Belt training curriculum
– Participation on a completed Green Belt or Black Belt Lean
Six Sigma project

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Session 1 Agenda / Objectives Cheryl Phillips
Confidential

▶ Session 1 Agenda – Introduction / Define

– Lean History
– Six Sigma Overview
– Lean Six Sigma Integration
– DMAIC Methodology
– Roles/Responsibilities
– Define Overview
– Project Charter Overview
– SIPOC Chart

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Session 1 - Objectives Cheryl Phillips
Confidential

▶ By the end of the session, the participant will be able to

– Understand how the Lean and Six Sigma methodology
evolved
– Understand the basic concepts of Lean and Six Sigma
– Know the Lean and Six Sigma integration principles
– Define the phases of the DMAIC methodology
– Know the roles and responsibilities of the LSS deployment
– Understand the elements needed to develop a project
charter
– Know how to develop a SIPOC chart

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 28/03/2019
Course Agenda Cheryl Phillips
Confidential

▶ Session 2 – Define/Measure
– Session 1 Review
– Data Classification (Data Types)
– Stratification Factors
– Data Collection Plan
– Process Mapping
– Process Analysis
▶ Session 3 – Analyze
– Session 1 & 2 Review
– Cause & Effect /Fishbone Analysis
– Cause & Effect Matrix
– Pareto Chart

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Course Agenda - Continued Cheryl Phillips
Confidential

▶ Session 4 – Improve/Control
– Session 1 – 3 Review
– Solution Selection Matrix
– Control Charts Overview
– Control Plans Overview
– Meeting Facilitation Tips
– Success Story Template

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Ground Rules (Remote) Cheryl Phillips
Confidential

– One person speaking at a time

– When speaking, please identify yourself
– If you have a question, please ask
– Do not put your phone on hold
– Focus on training
– Turn off e-mail
– Turn off IM
– No side conversations
– Set up area conducive for learning
– Close office door
– Put up a “Do not disturb sign”
– Place your phones on Mute

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Lean History

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Origins of Lean Cheryl Phillips
Confidential

▶ Lean has been around a long time:

– Pioneered by Ford in the early 1900’s (33 hrs from iron ore to finished
Model T, almost zero inventory but also zero flexibility!)
– Perfected by Toyota post WWII (multiple models/colours/options, rapid
setups, Kanban, mistake-proofing, almost zero inventory with maximum
flexibility!)
▶ Known by many names:
– Toyota Production System
– Just-In-Time
– Continuous Flow
▶ Outwardly focused on being flexible to meet customer demand, inwardly
focused on reducing/eliminating the waste and cost in all processes
▶ Highly applicable to transactional businesses!
– Whenever flexibility and speed are key: banks, technology firms and
customer service organizations the most recent to adopt Lean practices

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Toyota Production System – Waste 28/03/2019
Cheryl Phillips
Elimination (All Processes) Confidential

“The ability to eliminate waste is developed by

giving up the belief that there is ‘no other way’ to
perform a given task. It is useless to say, ‘It has
to be done that way,’ or ‘This can’t be helped!’

At Toyota, we have found that there is always

another way.”
– Study of the Toyota Production System

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 28/03/2019

Sources of Waste – DOWNTIME Cheryl Phillips

Confidential

1. Defects (incorrect data entry, rework & scrap – doing the same job more
than once)

2. Over processing (preparing unneeded reports, multiple copies in storage,

adding more value than the customer is paying for)

3. Waiting (delays caused by shortages, approvals, downtime)

4. Not utilizing creativity (untapped and/or misused resources)

5. Transportation (unneeded steps, moving items from one place to another)

6. Inventory (items/paperwork/information waiting to be processed)

7. Motion (unneeded data entry, extra steps, excess movement and/or poor
ergonomics)

8. Excessive Processing (too fast, excessive sign-offs)

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Achieve Lean Perfection Cheryl Phillips
Confidential

▶ Identify all opportunities for continuous improvement

– Reduction of effort
– Reduction of time
– Reduction of space
– Reduction of cost
– Reduction of mistakes
– Increasing customer satisfaction
▶ Improve the process through a variety of Lean tools/techniques:

◆ Value Stream Mapping ◆ Generic & Replenishment Pull Systems

◆ Time Trap Identification ◆ Visual Tools, Visual Processes
◆ Kaizen/Continuous Improvement ◆ Cellular Layouts & Line Balancing
◆ Kanban/Just In Time ◆ Standardized Work
◆ 5S Organization

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A Lean Process Means… Cheryl Phillips
Confidential

Old Process New Process

Cycle Time
Flexibility

◆ Faster feedback on process performance (increased learning cycles)

◆ Improved first pass yield (results in improved productivity)

◆ Improved process stability (results in improved throughput)

◆ Uncovers process deficiencies (forces problem resolution)

◆ Less in-process and buffer inventories (reduced risk)

◆ Improved customer satisfaction (flexibility and responsiveness)

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Six Sigma Overview

28/03/2019
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Six Sigma History Cheryl Phillips
Confidential

▶ Motorola was the first advocate in the 80’s

▶ Six Sigma Black Belt methodology began in late 80’s/early 90’s
▶ More recently, other companies have embraced Six Sigma:
– GE
– Allied Signal
– Bombardier
– Sony
▶ Project implementers names includes “Black Belts”, “Top Guns”, “Change
Agents”, “Trailblazers”, etc.
▶ Implementers are expected to deliver annual benefits between $500,000 and
$1,000,000 through 3-5 projects per year
▶ Top-down program with Executive and Champion support
▶ Outwardly focused on Voice of the Customer, inwardly focused on using
statistical tools on projects that yield high return on investment

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 28/03/2019
What Is Six Sigma? Cheryl Phillips
Confidential

▶ The term “Sigma” is a Greek letter (s) used to describe variability

▶ Sigma Quality Level (SQL) is an indicator of how often defects are
likely to occur
▶ A Sigma Quality Level (SQL) = 6 is said to equate to only 3.4
PPM (parts per million) defective (99.9997% good)
▶ A SQL= 4 (99% good) equates to:
– 20,000 lost articles of mail per hour
– 5,000 incorrect surgical operations per week
– 200,000 wrong drug prescriptions each year
– No electricity for almost 7 hours per month

Six Sigma is a data driven methodology focusing on reducing

process defects.

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Lean and Six Sigma
Integration

28/03/2019
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Lean Six Sigma - Integration Cheryl Phillips
Confidential

▶ “Six Sigma”
– Term originally comes from statistics
– Statistics help us measure and understand both individual data
points, averages, and variation in a process or service
– Primary focus is achieving improvements in service quality and
cost
▶ “Lean”
– Focus is eliminating waste in a process or service
– Result is reducing service cycle times, improving on-time delivery
performance, and reducing cost
▶ “Lean Six Sigma”
– Combines the speed and power of both Lean and Six Sigma
– Only a fast and responsive process is capable of achieving high
quality, and only a high quality process can sustain high velocity

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Integrating Lean and Six Sigma Cheryl Phillips
Initiatives Confidential

▶ Lean and Six Sigma can co-exist independently, but the

benefits of integration are tremendous...
– Single channel for employing limited resources
– One improvement strategy for the organization
– Highly productive and profitable synergy
– Avoid re-inventing Lean tools

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The Integration of Two Powerful Cheryl Phillips
Business Improvement Approaches Confidential

Precision + Accuracy + VOC Speed + Low Cost + Flexibility

▶ Six Sigma ▶ Lean
– Voice of the Customer – Value stream mapping
– Statistical Process – Bottleneck identification
Control and removal
– Design of Experiment – “Pull” from the Customer
– Error-proofing – Setup and queue
– Measurement Systems reduction
Analysis – Process flow
– Failure Modes Effect improvement
Analysis – Kaizen & 5S
– Cause and Effect Analysis – Supply Chain Strategy
– Hypothesis Testing – S&OP

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 28/03/2019
The Integration of Two Powerful Cheryl Phillips

Business Improvement Approaches Confidential

Combines the time-based strategy and solution sets inherent in Lean with the
cultural, organizational, process and analytical tools of Six Sigma.

With the result that we …

Respond to our customers better, faster and with less waste

Lean Six Sigma

Speed LSS Precision
Low Cost Accuracy
Flexibility VOC

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Lean Six Sigma
DMAIC Methodology

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Lean Six Sigma Improvement Cheryl Phillips
Process Confidential

Define Define the opportunity from both

business and customer perspectives

Understand the process

Measure and its performance

Search for the key factors (critical X’s) that

Analyze have the biggest impact on process
performance and determine the root causes

Improve Develop improvement

Critical Enablers solutions for the critical X’s
• Opportunity Identification &
Project Selection
• Project Sponsorship Implement the
• Tollgate Reviews Control solution and control
plan

27

Lean Six Sigma
Black Belt Improvement Process Road Map
Define
Activities
• Review Project Charter
• Validate Problem Statement
and Goals
• Validate Voice of the Customer
& Voice of the Business
• Validate Financial Benefits
• Validate High-Level Value
Stream Map and Scope
• Create Communication Plan
• Select and Launch Team
• Develop Project Schedule
• Complete Define Gate
Tools
• Project Charter
• Voice of the Customer and
Kano Analysis
• SIPOC Map
• Project Valuation/ROIC
Analysis Tools
• RACI and Quad Charts
• Stakeholder Analysis
• Communication Plan
• Effective Meeting Tools
• Inquiry and Advocacy Skills
• Time Lines, Milestones,
and Gantt Charting
• Pareto Analysis
• Belbin Analysis
Measure
• Value Stream Map for Deeper
Understanding and Focus
• Identify Key Input, Process and
Output Metrics
• Develop Operational Definitions
• Develop Data Collection Plan
• Validate Measurement System
• Collect Baseline Data
• Determine Process Capability
• Complete Measure Gate
Identify and Implement Quick Improvements
• Value Stream Mapping
• Value of Speed (Process Cycle
Efficiency/Little’s Law)
• Operational Definitions
• Data Collection Plan
• Statistical Sampling
• Measurement System Analysis
(MSA)
• Gage R&R
• Kappa Studies
• Control Charts
• Histograms
• Normality Test
• Process Capability Analysis
Analyze
• Identify Potential Root
Causes
• Reduce List of Potential
Root Causes
• Confirm Root Cause to
Output Relationship
• Estimate Impact of Root
Causes on Key Outputs
• Prioritize Root Causes
• Complete Analyze Gate
• Process Constraint ID and Takt
Time Analysis
• Cause & Effect Analysis
• FMEA
• Hypothesis Tests/Conf. Intervals
• Simple & Multiple Regression
• ANOVA
• Components of Variation
• Conquering Product and
Process Complexity
• Queuing Theory
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28/03/2019
Cheryl Phillips
Confidential
Improve
• Develop Potential Solutions
• Evaluate, Select, and Optimize
Best Solutions
• Develop ‘To-Be’ Value Stream
Map(s)
• Develop and Implement Pilot
Solution
• Confirm Attainment of Project
Goals
• Develop Full Scale
Implementation Plan
• Complete Improve Gate
Kaizen, 5S, NVA Analysis,
Generic Pull Systems,
Four Step Rapid Setup Method
• Replenishment Pull/Kanban
• Stocking Strategy
• Process Flow Improvement
• Process Balancing
• Analytical Batch Sizing
• Total Productive Maintenance
• Design of Experiments (DOE)
• Solution Selection Matrix
• Piloting and Simulation
Control
• Implement Mistake Proofing
• Develop SOP’s, Training Plan
& Process Controls
• Implement Solution and
Ongoing Process
Measurements
• Identify Project Replication
Opportunities
• Complete Control Gate
• Transition Project to Process
Owner
• Mistake-Proofing/
Zero Defects
• Standard Operating
Procedures (SOP’s)
• Process Control Plans
• Visual Process Control Tools
• Statistical Process Controls
(SPC)
• Solution Replication
• Project Transition Model
• Team Feedback Session
 28/03/2019
Define Define Measure Analyze Improve Control
Cheryl Phillips
Confidential

Project Identification
and Selection Tollgate
▪ Strategy
▪ Customer
Team ▪ Financial
Launch ▪ Process

Communication Plan
Scope Clarification Communications Plan
Validate Project Charter
What Do

S I P O C
Communication Desired Current Communications Timing Who Prepares
Stakeholder Objective Response They Already Attitudes Channel and Delivers
Know?

Stakeholder Analysis
Stakeholder Analysis
•1 •5

Customer Needs CCR/Measure LSL USL Priority

Voice of the Customer

and
Translate VOC to
Voice of the Business
Requirements
Customer Key Customer Customer
Comment Issue Requirement
“I hate filling out this Takes too long long to The form takes less than
form.” fill it out five minutes to complete

“I don’t understand this Ambiguous instructions 99% of all forms filled out
jargon.” are completed correctly
the first time (no defects)

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Measure Define Measure Analyze Improve Control
Cheryl Phillips
Confidential

Tollgate
Develop Measures
Focus Project – Process Mapping
I P O
Input Process Output Sigma Quality Level
1. Determine number of defect
• Based on process opportunities per unit O= 3

and Y=f(X) 2. Determine number of units

processed N= 100
3. Determine total number
of defects made D= 19
4. Calculate Defects D
DPO = = 0.063
per Opportunity NxO
5. Calculate DPMO
DPMO = DPO x 1,000,000 = 63,333
Gather Data - Sampling 6. Look up the Sigma in the
Sigma Quality Level = ~3
Strategy and Data Collection Plan
Sigma Table (next slide)

Wasteful Energy Habits Week 1 Week 2 Week 3 Total

Long showers 6
Validate Measurement Lights left on 11

System
Windows left open 3
Determine Process Capability
Gage name:

Gage R&R (ANOVA) f or Response

Date of study:
o
Reported by:
Tolerance:
Misc:
AC set below 72 5
Components of Variation By Part
100
%Contribution
600 Door left open 13
%Study Var 500
Percent

50
400

300 Total 15 12 11 38
200
0
Gage R&R Repeat Reprod Part-to-Part Part 1 2 3

R Chart by Operator By Operator

400 1 2 3
600
UCL=376.5
Sample Range

300 500

200 400
R=146.3
100 300

0 LCL=0 200

0 Operator 1 2 3

Xbar Chart by Operator Operator*Part Interaction

1 2 3 490 Operator
550 UCL=555.8 1
2
Sample Mean

440
Average

450 3
Mean=406.2
350 390

250 LCL=256.5 340

0 Part 1 2 3

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Analyze Define Measure Analyze Improve Control
Cheryl Phillips
Confidential

Cause & Effect

Diagram Tollgate

Root Cause
Validation
Narrow list to Prioritized
Value-Added Analysis Potential Critical Root Causes
X’s or Root Causes
1. Slfjldskjfldjfldsjflds

X’s Regression 2. Dlfjldsjldsjfldsjf

3. Dsfldsjfldsjfldsjfds
4. Dsfjdsljfldsjfldsjf
5. Dsfljfljfljflds
6. Fjldjfldsjfdsf
Data Analysis 7.
8.
Dsfjdsfjdsf
Dsfdsljfdsjfldsj
9. slfjlsjfkds

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 28/03/2019
Improve Define Measure Analyze Improve Control
Cheryl Phillips
Confidential

Solution Generation Launch

Narrowing Solutions
✓ Idea Generation Risk
✓✓
✓✓
✓✓ Techniques Management
✓✓
✓✓
✓ ✓✓
✓
Stage gate
✓✓
✓✓

Multi-Voting
Lean Best Practices
FMEA Pilot
Cost/Benefit
Analysis Implementation
Should-Be Mapping Planning

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Control Define Measure Analyze Improve Control
Cheryl Phillips
Confidential

Tollgate
Ongoing Measurement
Risk Assessment –
FMEA or Other
Failure Specific Cause Effect of Failure Likeliness Detectability Severity of Risk
I P O
Dashboard Review
Mode of Failure of Failure Failure Priority
Gas will not Spring broke Explosion resulting in 3 5 10 150

Input Process Output

shut off preventing valve property damage
from closing and/ or serious injury



Likeliness of Failure: 1-10 with 10 representing most likely
Detectability of Failure: 1-10 with 10 representing most difficult
• Based on process
 Severity of Failure: 1-10 with 10 representing most severe and Y=f(X)
 Risk Priority = (Likeliness of Failure) X (Detectability of Failure) X
(Severity of Failure)

Control Charts Process Control Plan

Process Name
Documentation/SOP’s
Process Map Monitoring

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 28/03/2019
DMAIC Concept Focus Cheryl Phillips
Confidential

“Many Potential Projects”

Define Single Project Selected

“Where are we now?”

Project Baseline Measured
Measure
“Many Potential
Root Causes”

Analyze Root Causes Identified

And Verified

“What is the solution?”

Improve Improvements Tested

and Measured

“How do we sustain
the gains”
Control
Self-Sustaining
Institutionalized
Process
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 28/03/2019
When to Use the Lean Six Sigma Cheryl Phillips
Methodology Confidential

Black Belt /Green Belt projects:

▶ Project is larger in scope – need to go through the entire DMAIC
methodology
▶ You have a challenging goal to reach or issue to solve
– Driven by the Business Unit strategy
– Issues that are valuable for the Business Unit to resolve
– Problems that “have stood the test of time”
– Solution is not known
▶ You are willing to commit people to identify and resolve the issue
▶ You want a more robust solution than traditional methods can provide
▶ You want to encourage the upward flow of ideas and build team spirit
▶ You want group ownership of a course of action
Yellow Belt projects:
▶ Projects that are smaller in scope – may not know the solution
▶ You already have a solution and course of action

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 28/03/2019
Lean Six Sigma Projects at Atos Cheryl Phillips
Confidential

Lean Six Sigma project benefits include:

– Defect reduction
– Cycle time improvement
– Process waste elimination
– Improved productivity
– Improved customer satisfaction

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Lean and Six Sigma
Roles & Responsibilities

28/03/2019
 28/03/2019
Lean Six Sigma Master Black Belt Cheryl Phillips
(MBB) Confidential

Role of MBB: Full-time LSS resource driving overall LSS

deployment throughout Atos
▶ Responsibilities of MBB:
– Project prioritization, pipeline maintenance, and approval
– Curriculum development and deployment
– Project identification sessions
– Project mentoring
– Approval of all BB tollgates
– Champion and sponsor support
– Communication
– Drive culture change

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Lean Six Sigma Black Belt (BB) Cheryl Phillips
Confidential

Definition of Black Belt

Black Belt
• Trained Black Belt – complete approved BB training and passed exam
• Active Black Belt – Person functioning as a full-time LSS resource
(leading, mentoring and training) and is either in the process of
completing BB training or has already achieved BB training requirements
• Certified Black Belt – Achieved CI certification requirements (a certified
BB may be in the role of an active BB) through Atos or through a
previous employer

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 28/03/2019
Lean Six Sigma Black Belt Cheryl Phillips
(continued) Confidential

Role of BB: Full-time LSS resource driving LSS project

completion
▶ Responsibilities of BB:
– Lead LSS BB projects
– Mentor LSS GB projects
– Approval of all GB tollgates
– Yellow Belt training
– LSS training
– Sponsor support/mentoring
– Communication
– Drive culture change

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Lean Six Sigma Green Belt (GB) Cheryl Phillips
Confidential

Definition Green Belt

– Green Belt (Role): Part-time LSS project leader who
maintains normal job responsibilities while leading LSS
projects
– Green Belt – complete approved GB training and passed
exam
– Certified Green Belt – Achieved CI certification requirements
through Atos or through previous employer

Responsibilities of GB:
• LSS project leader
• Drive culture change
• Use LSS methodology/tools as part of everyday job

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 28/03/2019
Lean Six Sigma Yellow Belt (YB) Cheryl Phillips
Confidential

Role of YB: Participate fully on LSS project teams driving

small/mini process improvement
▶ Responsibilities of YB
– Provide subject matter expertise on project team
– Active team member throughout the life of the LSS project
– Completion of one small/mini process improvement project
– Completion of a one page Success Story Document
– Drive Culture Change

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 28/03/2019
Atos QCI Certification Cheryl Phillips
Confidential

Black Belt Requirements

• Complete Black Belt training and pass exam
• Complete 2 projects through Control phase
• Present 2 projects to CI Review Board for final certification approval

Green Belt Requirements

• Complete Green Belt training and pass exam
• Complete 2 projects through Control Phase
• Present 2 projects to CI Review Board for final certification approval

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Atos QCI Certification - Continued Cheryl Phillips
Confidential

Yellow Belt Requirements

▶ Option 1:
– Completion of the required Yellow Belt training curriculum
– Completion of one small/mini process improvement project
– Record the small/mini process improvement project in the
GCSIR tool
– Completion of a one page Success Story Document

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Yellow Belt
Introduction to Define
Overview
Project Charters
SIPOC

28/03/2019
Lean Six Sigma 28/03/2019
Cheryl Phillips
Improvement Process Road Map - Define Phase Confidential
Overview

Define Measure Analyze Improve Control

• Value Stream Map for Deeper

Identify
Understanding and Focus and Implement Quick Improvements with Kaizen
• Identify Key Input, Process and Kaizen, 5S, NVA Analysis,
Output Metrics Generic Pull Systems,
• Develop Operational Definitions Four Step Rapid Setup Method
• Develop Data Collection Plan
• Validate Measurement System
Activities • Collect Baseline Data Tools
• Determine Process Capability
• Review ProjectCharter
• Complete Measure Gate
• Project Charter
• Validate Problem Statement • Voice of the Customer and Kano Analysis
and Goals • SIPOC Map
• Validate Voice of the Customer • Project Valuation/ROIC Analysis Tools
and Voice of the Business • Stakeholder Analysis
• Validate Financial Benefits • Communication Plan
• Validate High-Level Value Stream Map and Scope
• Create Communication Plan
• Select and Launch Team
• Develop Project Schedule
• Complete Define Gate

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Project Charter Overview Cheryl Phillips
Confidential

Answers the questions:

▶ Why is this project important?
▶ Who is responsible for the success of this project?
▶ What are the expected benefits of this project?
▶ When should the expected benefits begin to accrue and for how
long?
▶ Where are improvement efforts being focused?

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Project Charter Overview Cheryl Phillips
Confidential

Start of project

• Broadly define the project (initial scope, preliminary estimates of benefits, performance
goals, estimated start and completion time, and so on)
• Assign project team members
• Provide rationale for the project by linking the project to stakeholder needs or
requirements
• Provide a problem statement for the project and a clear definition of the defect that is
the focus of the project

Mid-project

• After establishing a baseline for a project, update the information regarding process
performance, improvement goals, and estimated benefits
• Continuously update information as the project progresses

Data - No data requirements exist because you only use this tool to collect and organize data.

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 28/03/2019
Project Charter How-To Cheryl Phillips
Confidential

1 The project selection team often writes an initial project charter,

which contains the following information:
– Team (champion, process owner, project leader, and finance
representative)
– Title and problem statement
– Initial estimate of defect rate
– Preliminary defect reduction goal
– Initial benefits estimates
– Start date and estimated completion date
– Executive summary outlining stakeholder benefits
2 The project leader provides a clear definition of the defect to
reduce as well as what constitutes a defect opportunity.

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Project Charter How-To Cheryl Phillips
Confidential

3 The team members listed above should sign the project

charter prior to launching the project.
4 Record the collected information in a Project Charter
Template.
5 Update information in the project charter as the project
progresses.
6 Most commonly, you update the benefits section of the
project charter after you establish a baseline for the process,
which also implies that you have evaluated the measurement
system.
7 Most commonly, you include finalized benefits information
and performance metrics at the time you hand off the project
to the process owner.

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Project Charter Guidelines Cheryl Phillips
Confidential

▶ Remember the completion date is generally an estimate and you may need to
revise it as the project progresses.
▶ Organizations should standardize defect metrics. For example, usually Six Sigma
projects use long-term DPMO, or PPM (what the customer feels), and short-term
Z-bench (a measure of entitlement).
▶ The importance of having Champion/management support is critical when the
project affects or needs the support of a function/organization separate from the
one doing the project. Evaluate the feasibility of such projects carefully.

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SIPOC Overview Cheryl Phillips
Confidential

Answers the questions:

▶ Where does the process start and end?
▶ What are the major steps in the process?
▶ What are the primary process inputs and outputs?
▶ Who are the key customers of the process (both internal and external)?
▶ Who are the key suppliers of the process (both internal and external)?

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SIPOC Overview Cheryl Phillips
Confidential

When to Use:
▶ Pre-project - Identify potential projects by isolating areas of the process that
need improvement.
▶ Start of project - Scope the project by defining the beginning and end of the
process segment that is the focus of the project.
▶ Mid-project - Use to identify inputs for simple processes with few inputs.

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 28/03/2019
SIPOC How-To Cheryl Phillips
Confidential

As a team, determine where the process starts and where it ends, then define major
steps in the process.
– List the primary steps in the process.
– List the primary process inputs; you do not need to associate inputs
with process steps.
– List the primary process outputs; you do not need to associate
outputs with process steps.
– List the suppliers of the process; you do not need to associate a
supplier with every process input.
– List the customers of the process; you do not need to associate a
customer with every process output.
– SIPOC, like process mapping, is a team effort. Your team should
include people who have various jobs related to the process to help
point out activities, inputs, outputs, or process data that may be
missed otherwise.

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 28/03/2019
SIPOC Guidelines Cheryl Phillips
Confidential

SIPOC, like process mapping, is a team effort. Your team should include people who
have various jobs related to the process to help point out activities, inputs,
outputs, or process data that may be missed otherwise.

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The SIPOC Chart Cheryl Phillips
Confidential

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Completing the SIPOC Cheryl Phillips
Confidential

1. Complete the SIPOC Header

2. In Process, list the major steps in the process, most importantly,
the start and end points, so that the scope of the process is
clear. You do not need to list every step or activity.
3. In Outputs, enter a Description, then the Requirements. For
outputs with multiple requirements, use multiple rows.
4. In Customers, enter the customers. Customers can be matched
with an output description or with an output requirement. You do
not need to list a customer for every output.
5. In Inputs, enter a Description, then the Requirements. For
inputs with multiple requirements, use multiple rows.
6. In Suppliers, enter the suppliers. Suppliers can be matched with
an input description or with an input requirement. You do not
need to list a supplier for every input.

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Define Conclusion Cheryl Phillips
Confidential

▶ Define phase focuses on:

– Clearly defining the problem, goal and scope
– Identifying project team members and stakeholders
▶ All team members and stakeholders must understand the
project charter
▶ The SIPOC is a process mapping tool which enables the
following:
– High-level view of process to be improved
– Identification of process inputs, outputs, suppliers and
customers
– Further communication of the scope as identified in the
charter

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What’s Next? Cheryl Phillips
Confidential

▶ Session 1 Review
▶ Data Classification
▶ Data Collection Plan
▶ Stratification Factors
▶ Process mapping

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Acronyms Cheryl Phillips
Confidential

▶ Lean Six Sigma – LSS

▶ Define, Measure, Analyze, Improve & Control - DMAIC
▶ Continuous Improvement – CI
▶ Master Black Belt – MBB
▶ Black Belt- BB
▶ Green Belt – GB
▶ Yellow Belt – YB
▶ Sigma Quality Level - SQL
▶ Cause & Effect Analysis – C&E Analysis
▶ Supplier, Input, Process, Output and Customer - SIPOC

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