Program Name

Lean Six Sigma

<Project Title
(State From ... To)>
< Last Name, First Name >
Define Measure Analyze Improve Control
Wave No: <xx>
Review Date: <xx/xx/xxxx>

LEAN
SIX SIGMA
 Program Name
Lean Six Sigma

Define Measure Analyze Improve Control

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 callMean
volumes
71.4444
LSL 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 measured.
Cpk -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 Perf ormance
PPM < LSL Process
0.00
Expected ST Performance
Capability
PPM < LSL – 33440.39
After
Expected LT Perf ormance
PPM < LSL 79094.9
as root causes. PPU -0.34
P roc es s Data
PPM
L S L> USL 948717.95 PPM > USL
US L 906498.25 PPM > USL 845218.9
PPL 0.47 PPM Total 948717.95 PPM Total 939938.64 PPM Total 924313.9
US L 20.0000
Ppk -0.34
Improve & Control T arget
LS L 0.0000
*
ST
LT
Cross-training on call types was performed and staffing was
S am ple N 169
Mean 14.7929

arranged around peak call times. Metrics are reviewed weekly

S tDev (S T ) 3.38716
S tDev (LT ) 4.61648
and posted to an IT dashboard.
P otential (S T ) Capability
Cp 0.98

Results/Benefits CP U
CP L
0.51
1.46
After the 3 month project, the customer saved US$150K,
Cpk
Cpm
or 0.51
*
30%, as a result of reduced end user downtime. 0 10 20 30 40
Overall (LT ) Capability Obs erved P erform anc e E xpec ted S T P erform anc e E xpec ted LT P erform an
Pp 0.72 P P M < LS L 0.00 P P M < LS L 6.29 P P M < LS L 67
PPU 0.38 P P M > US L 130177.51 P P M > US L 62109.19 P P M > US L 12967

A Savings of US $150k in 2007!

PPL
P pk
1.07
0.38
P P M T otal 130177.51 P P M T otal 62115.48 P P M T otal 13034

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 Control
Project “Storyboard” – Example
Define 1.2 Day
Project Charter CTQ Gap Sigma
Performanc
BUS CASE: Be #2 Fin Service Provider e 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

Control

Improve
Pilot Plan
Loan or
Lease
Screen
Entry
Color
Printouts
Rewards
& Recog
Work & Turnover, Waiting, & Automation
Affect CT; Job Aids affect Variation in CT Flex
Time

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 Program Name
Lean Six Sigma

Define Measure Analyze Improve Control

LEAN
SIX SIGMA
Project Charter Control

Problem/Goal Statement Financial Impact

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

Team Tollgate Review Schedule

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

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 Control

Measure Overview
Process Capability Graphical Analysis
I-MR Chart of Delivery Time
 CTQ: ? 40
U C 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

Sigma (Short Term): ?

O bser v ation

U C L=10.53

Sigma (Long Term):?

10.0


Moving Range
7.5

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

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

carried out in the project 1 28 55 82 109 136

O bser v ation
163 190 217 244

Root Cause / Quick Win Tools Used

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

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 Control
Analyze Overview
Hypothesis Tests Value-Add Analysis
Hypothesis Test Factor (x) Value Add Analysis - Current State
(ANOVA, 1 or 2 sample t - test, Chi Squared, p Value Observations/Conclusion
Regression, Test of Equal Variance, etc) Tested Takt Tim e = 55
Significant factor - 1 hour driving time from DC 80

Task Time (seconds)

Example: ANOVA Location 0.030 to Baltimore office causes ticket cycle time to
generally be longer for the Baltimore site 60
Significant factor - on average, calls requiring
Example: ANOVA Part vs. No Part 0.004 parts have double the cycle time (22 vs 43 40
hours)
Significant factor - Department 4 has digitized 20
Example: Chi Squared Department 0.000 addition of customer info to ticket and less
human intervention, resulting in fewer errors 0
South region accounted for 59% of the defects 1 2 3 4 5 6 7 8 9 10
Example: Pareto Region n/a due to their manual process and distance from Task #
the parts warehouse
Describe any other observations about the root cause (x) data CVA Time BVA Time NVA Time

Root Cause / Effect Tools Used

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

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Improve Summary
Control

Practical Solution (process change Operating

Vital X (root cause)
Client IT need to reverify
all exit data received from
Client HR
E-mail vendor's contract
with Client
E-mail vendor's contract
with Client
Proof of Causation
to address X) Tolerances for X
Average delay between Eliminate process - Place accountability n/a
reception of information on Client HR for information placed into
from Client HR until it new database.
reaches NT Admin or
general admin
The SLA has a range of 3- E-mail vendor instituted new web 1 - 2 days
5 business days for the interface for all add/delete requests,
completion of a delete vastly improving request processing
request time.
The SLA has a range of 3- E-mail vendor instituted new web 1 - 2 days
5 business days for the interface for all add/delete requests,
completion of a delete vastly improving request processing
request time.

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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Lessons Learned
Control

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

Enter Key Slide Take Away (Key Point) Here

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Sign Off
Control

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 to hold the gains and capture the financial benefits

Enter Name Here Enter Name Here Enter Name Here Enter Name Here
Sponsor / Process Owner Executive Director Financial Representative Green Belt/Black Belt

Enter Name Here Enter Name Here Enter 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
 Control
Sample Team Member 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

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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.

© 2006 by Bonacorsi Consulting, L.L.C. All Rights Reserved.

Steven Bonacorsi is a Senior Master Black
Belt instructor and coach. Steven Bonacorsi
has trained 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