Program Nam

Lean Six Sigm

<Project Title
(State From ... To)>
< Last Name, First Name >
DefineMeasure
AnalyzeImproveControl
Wave No: <xx>
Review Date: <xx/xx/xxxx>

LEAN
SIX SIGMA
 Program Nam
Lean Six Sigm

DefineMeasure
AnalyzeImproveControl

LEAN
SIX SIGMA
 Control
“Descriptive Project Title”
Process Capability Analysis for Average Spee
Customer Profile – 28,000 Retail Business Process Capability – Before
LSL
USL
Process Data

Business Problem & Impact USL

Target
20.0000
*
ST
Average speed to answer (ASA) was 1 minute. As call
Mean
volumes
LSL
71.4444
0.0000
LT

increased 30% with a recent acquisition, end user downtime

Sample N 117
StDev (ST) 38.9880
was costing the company US$500K annually. The target
StDev (LT) 50.6272

average speed to answer was under 30 seconds.

Potential (ST) Capability
Cp 0.09
Measure & Analyze CPU -0.44
CPL 0.61
Data Collection: Speed to answer on all calls was Cpk
measured.-0.44
Cpm *
The existing process sigma was 2.4. -100 0 100 200 300 400

Root Causes: Nature of problem and time of call were

Pp
identified
Overall (LT) Capability
0.07
Observed Performance
PPM < LSL Process
0.00 Capability
PPM < LSL
Expected ST Performance
– 33440.39
After
Expected LT Performance
PPM < LSL 79094.9

as root causes. PPU

PPL
-0.34
Process Data0.47
PPM > USL
LSL
PPM Total
948717.95
948717.95
PPM > USL
USL
PPM Total
906498.25
939938.64
PPM > USL
PPM Total
845218.9
924313.9
PpkUSL 20.0000
-0.34
Improve & Control T arget
LSL 0.0000
*
ST
LT
Cross-training on call types was performed and staffing
Mean was 14.7929
Sample N 169
arranged around peak call times. Metrics are reviewedStDevweekly
(ST ) 3.38716
StDev (LT ) 4.61648
and posted to an IT dashboard.
Potential (ST ) Capability
Cp 0.98

Results/Benefits CPU
CPL
0.51
1.46
After the 3 month project, the customer saved US$150K,
Cpk or 0.51
Cpm *
30%, as a result of reduced end user downtime. 0 10 20 30 40
Overall (LT ) Capability Observed Performance Expected ST Performance Expected LT Performan
Pp 0.72 PPM < LSL 0.00 PPM < LSL 6.29 PPM < LSL 67
PPU 0.38 PPM > USL 130177.51 PPM > USL 62109.19 PPM > USL 12967
A Savings of US $150k in 2007!
PPL
Ppk
1.07
0.38
PPM T otal 130177.51 PPM T otal 62115.48 PPM T otal 13034

Bonacorsi Consulting 3
 Control
Project “Storyboard” – Example
Define 1.2 Day
Project Charter CTQ Gap Sigma
Performan
BUS CASE: Be #2 Fin Service Provider ce Level
of 1.3
GOAL: Reduce Loan/Lease CT from
9.2 to 8.0 days by July 1
Measure
FIN IMPACT: $2.7M per year Analyze

Contro
l

Improv
Loan or e
Pilot Plan
Lease
Screen
Entry
Color
Printout
sReward
s&
Work & Turnover, Waiting, & Automation Recog
Affect CT; Job Aids affect Variation in CT Flex
Time

Bonacorsi Consulting 4
 Program Nam
Lean Six Sigm

DefineMeasure
AnalyzeImproveControl

LEAN
SIX SIGMA
Project Charter Control

Problem/Goal Financial Impact

Statement
Problem: Describe problem in non-technical terms
 Statement should explain why project is important;  State financial impact of project
why working on it is a priority  Expenses
Goal: Goals communicate “before” and “after”  Investments (inventory, capital, A/R)
conditions  Revenues
 Shift mean, variance, or both?
 Should impact cost, time, quality dimensions  Separate “hard” from “soft” dollars
 Express goals using SMART criteria
 Specific, Measurable, Attainable, Resource  State financial impact of leverage opportunities
Requirements, Time Boundaries (future projects)
 Explain leverage and strategic implications (if any)

Team Tollgate Review

 PES Name Project Executive Sponsor (if different from
Schedule
Tollgate Scheduled Revised Complete
PS)
Define: XX/XX/XX - XX/XX/XX
 PS Name Project Sponsor/Process Owner
 DC Name Deployment Champion Measure: XX/XX/XX XX/XX/XX XX/XX/XX
 GB/BB Name Green Belt/Black Belt Analyze: XX/XX/XX XX/XX/XX XX/XX/XX
 MBB Name Master Black Belt Improve: XX/XX/XX XX/XX/XX XX/XX/XX
Core Team Role % Contrib. LSS Control: XX/XX/XX XX/XX/XX XX/XX/XX
Training
 Team Member 1 SME XX YB  Review high-level schedule milestones
 Team Member 2 TM XX GB here:
 Team Member 3 SME XX PS  Phase Completions
 Team Member 4 SME XX YB
 Tollgate Reviews
Extended Team
 Team Member 1 BFM XX Not Trained  Trials
Bonacorsi Consulting
 Team Member 2 IT XX Not Trained 6
 Control

Measure Overview
Process Capability Graphical Analysis
I -MR Chart of Delivery Time
 CTQ: ? 40
UC L=37.70
 Unit (d) or Mean (c): ?

Individual Value
35

 Defect (d) or St. Dev. (c): ? 30 _

X=29.13

DPMO (d): ? 25

20 LC L=20.56
1 28 55 82 109 136 163 190 217 244
Observation
 Sigma (Short Term): ?
UC L=10.53
10.0
 Sigma (Long Term):?

Moving Range
7.5

5.0
 MSA Results: show the percentage result of the 2.5
__
MR=3.22

GR&R, AR&R or other measurement systems 0.0 LC L=0

analysis carried out in the project 1 28 55 82 109 136

Observation
163 190 217 244

Root Cause / Quick Win Tools Used

 Root cause:  Detailed process mapping  Time Series Plot
 Measurement Systems  Probability Plot
 Quick Win #1
Analysis  Pareto Analysis
 Root cause:  Value Stream Mapping  Operational
 Data Collection Planning Definitions
 Quick Win #2
 Basic Statistics  5s
 Root cause:  Process Capability  Pull
 Quick Win #3  Histograms  Control Charts

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 Control
Analyze Overview
Hypothesis Tests Value-Add Analysis

Root Cause / Effect Tools Used

 Root cause:  Value Add Analysis  C&E Matrix
 One-Way ANOVA  Complexity
 Effect
 Two-Way ANOVA  Cause & Effect
 Root cause:  Pareto Plots Diagram
 Effect  Simple Linear Regression
 Kaizen/Quick Wins
 Multiple Regression
 FMEA
 Root cause:  Control/Impact Chart
 Test for Equal Variance
 Effect  Scatter Plots
 T-Test
 Other
Bonacorsi Consulting 8
 Control
Improve Summary

Solution Selection Criteria Pilot and Implementation Plan

How the solution was determined: 1. ?
• What was the solution selection tool used? 2. ?
• What project management tools were used? 3. ?
• Cost/benefit analysis? 4. ?
• Include any other tools or methods used 5. ?

Enter Key Slide Take Away (Key Point) Here

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 Control
Control Summary
Control/Response Plan Highlights Benefits of Project
• ? • ?
Include text here to explain Summarize benefits to the
• ? • ?
highlights of the plan to monitor and internal/external customers here.
• ? respond to variation in y’s and x’s • ? Start tracking benefits from date
• ? • ? of implementation of Improve
Phase Improvements.
• ? • ?

Sigma Levels/Improvements Communication & Translation

Baseline Improved Documentation
Units ? ? • Provide any necessary training
Defects ? ? Translation project within/ outside of region/function:
DPMO ? ? • Any resulting spin-off projects initiated
Mean* ? ? • Anything done to carry out projects in other
Std. Deviation* ? ? locations
Sigma (ST) ? ?
Communication
Sigma (LT) ? ? • Communicate project results with customer
* Continuous data only • Communicate results with the business
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 Control
Business Impact
 State financial impact of project
 Separate “hard or Type 1” from “soft Type 2 or 3” dollars
 State financial impact of future project leverage opportunities
Annual Estimate Replicated Estimate
Revenue  • Type 1: ? • Type 1: ?
• Type 2: ? • Type 2: ?
Enhancement • Type 3: ? • Type 3: ?

Expenses  • Type 1: ? • Type 1: ?

• Type 2: ? • Type 2: ?
Reduction • Type 3: ? • Type 3: ?

Loss  • Type 1: ? • Type 1: ?

• Type 2: ? • Type 2: ?
Reduction • Type 3: ? • Type 3: ?

Cost  • Type 1: ? • Type 1: ?

• Type 2: ? • Type 2: ?
Avoidance • Type 3: ? • Type 3: ?

Total Savings • Type 1: ? • Type 1: ?

• Type 2: ? • Type 2: ?
• Type 3: ? • Type 3: ?

Enter Key Slide Take Away (Key Point) Here

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 Control
Business Impact Details
 Type 1: Describe the chain of causality that shows how you determined the Type 1 savings. (tell
the story with cause–effect relationships, on how the proposed change should create the
desired financial result (savings) in your project )
 Show the financial calculation savings and assumptions used.
 Assumption #1 (i.e. source of data, clear Operational Definitions?)
 Assumption #2 (i.e. hourly rate + incremental benefit cost + travel)

 Type 2: Describe the chain of causality that shows how you determined the Type 2 savings. (tell
the story with cause–effect relationships, on how the proposed change should create the
desired financial result (savings) in your project )
 Show the financial calculation savings and assumptions used.
 Assumption #1 (i.e. Labor rate used, period of time, etc…)
 Assumption #2 (i.e. contractor hrs or FTE, source of data, etc…)

 Describe the Type 3 Business Impact(s) areas and how these were measured
 Assumption #1 (i.e. project is driven by the Business strategy?)
 Assumption #2 (i.e. Customer service rating, employee moral, etc…)

 Other Questions
 Stakeholders agree on the project’s impact and how it will be measured in financial terms?
 What steps were taken to ensure the integrity & accuracy of the data?
 Has the project tracking worksheet been updated?

Enter Key Slide Take Away (Key Point) Here

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 Control
Lessons Learned
1. ?
2. ?
3. ?
4. ?
5. ?
6. ?
7. ?
8. ?
9. ?
10.?

Enter Key Slide Take Away (Key Point) Here

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 Control
Sign Off
Once the project is complete and has been reviewed by the Green Belt/Black Belt or
other Quality mentor, the project should be reviewed with Deployment Champion,
Project Sponsor, Process Owner, Master Black Belt and other project or process
stakeholders. In addition, financial benefits of the project (or the method used to
estimate financial benefits) should be confirmed by your Process Owner and/or finance
representative.
• Policies & Procedures for the Improve and Control phases were documented and
communicated on MM/DD/YY
• I understand the New Policies and Procedures
• I understand and take responsibility for monitoring the Defect Measurements as
delineated in the Control Plan
• I will report the progress on this subprocess on a regular basis to the customer (internal or
external)
• I have reviewed this project’s financial benefits with the Deployment Champion, Sponsor
and Finance
• I understand the corrective action procedure and am responsible for ensuring that action
items are completed toEnter
hold the gains and
Name capture
Here Enter theName
financialHere
benefits
Enter Name Here
Enter Name Here
Sponsor / Process Owner Executive Director Financial Representative Green Belt/Black Belt

Enter Name Here Enter Name HereEnter Name Here

Enter Name Here
Deployment Champion “Other” Key Stakeholder “Other” Key Stakeholder Master Black Belt

Bonacorsi Consulting 14

Project Contributors
Steering Team
 <Name>: <Contribution>
 <Name>: <Contribution>
 <Name>: <Contribution>
 <Name>: <Contribution>
 <Name>: <Contribution>
Project Ownership Team
 <Name>: <Contribution>
 <Name>: <Contribution>
 <Name>: <Contribution>
 <Name>: <Contribution>
 <Name>: <Contribution>
Enter Key Slide Take Away (Key Point) Here
Bonacorsi Consulting
Control
Support Team
 <Name>: <Contribution>
 <Name>: <Contribution>
 <Name>: <Contribution>
 <Name>: <Contribution>
 <Name>: <Contribution>
Deployment Team
 <Name>: <Contribution>
 <Name>: <Contribution>
 <Name>: <Contribution>
 <Name>: <Contribution>
 <Name>: <Contribution>
15
Sample Team Member Control
Certificate

<Name>
Has Successfully Participated In The
“Project Name”
Your Commitment to the Program Name is Recognized as the
Driving Force Behind the Future Success of Your Organization, Incorporated.
Month XX, XXXX to Month XX, XXXX

Month XX, XXXX

Team Leader Date

Bonacorsi Consulting 16
Bonacorsi Consulting
This Training Manual and all materials, procedures and systems herein contained or
depicted (the "Manual"), are the sole and exclusive property of Bonacorsi Consulting,
L.L.C.
The contents hereof contain proprietary trade secrets that are the private and
confidential property of Bonacorsi Consulting. Unauthorized use, disclosure, or
reproduction of any kind of any material contained in this Manual is expressly
prohibited. The contents hereof are to be returned immediately upon termination of any
relationship or agreement giving user authorization to possess or use such information
or materials. Any unauthorized or illegal use shall subject the user to all remedies, both
legal and equitable, available to Bonacorsi Consulting. This Manual may be altered,
amended or supplemented by Bonacorsi Consulting from time to time. In the event of
any inconsistency or conflict between a provision in this Manual and any federal,
provincial, state or local statute, regulation, order or other law, such law will supersede
the conflicting or inconsistent provision(s) of this Manual in all properties subject to that
law. Steven Bonacorsi is a Senior Master
Black Belt instructor and coach.
© 2006 by Bonacorsi Consulting, L.L.C. Steven Bonacorsi
All Rights has trained
Reserved.
hundreds of Master Black Belts, Black
Belts, Green Belts, and Project
Sponsors and Executive Leaders in
Lean Six Sigma DMAIC and Design for
Lean Six Sigma process improvement
methodologies.

Bonacorsi Consulting 17