2010 Dr. Charles Wilson Six Sigma Doctor 11/28/2010 Six Sigma Project Execution Steps Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 2 Copyright © 2010 All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, graphic, electronic, or mechanical, including photocopying, recording, taping, or by any information storage retrieval system, without the permission, in writing, from the publisher. LTD Publishing An imprint of Six Sigma Doctor Book Group 407 Southern Oaks Drive Lake Jackson, Texas 77566 www.treqnauniversity.org This is a DEMO of the 180 page pdf eBook “Six Sigma Project Execution Steps”. The pre-sales price is $19.95. It is the author’s intent this step – by –step guide serves you well on your journey as both a Six Sigma Project Execution Team Member and or Project Manager, no matter if you are a veteran or a newbie to these activities. You will find more about the benefits of this important eBook on pages (3 and 4). As you scan the Table of Contents (pages 5 and 6) you will notice this eBook includes the Six Sigma DMAIC project execution phase and as well sub steps within each the Define, Measure, Analyze, Improve and Control. The (14) appendixes include many additional resources to assist both team members and project managers during the execution of their Six Sigma project. Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 3 This eBook is intended for those persons who are experiencing the managing or leading of their first Six Sigma Project. As well it is intended for those who are veteran Six Sigma Project Managers and wish to build a standardized roadmap for their organizational Six Sigma project management process. The main purpose of this pdf eBook is designed to address the general guidelines for Six Sigma Project execution phases of DMAIC (Define, Measure, Analyze, Improve, and Control) and includes some suggested sub steps for each. Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 4 The benefit of this eBook is found in providing a roadmap to both new and veteran project managers by assisting them and their teams to successful execute a first time Six Sigma project. A second benefit is the use of this work as a training guideline for the less experienced project team members serving on the execution team as “subject matter experts”. An added benefit of this eBook is that it can provide the foundation for both organizations and individual project managers to use this work as a guidepost for building their own standardized procedures for project executions. No two projects are ever the same and as such you may find the need to skip all or part of a sub step, add steps, and or add tools as maybe needed during a specific project execution. It is suggested to always use the simplest of tools to accomplish the task at hand. Let the tools work for you, not the other way around. Experienced veterans of Six Sigma and other continuous improvement methodologies will recognize that many of the improvement tools and methods used during a specific phase of the execution process may well be employed in other phases and sub steps of the project execution process. Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 5 Six Sigma DMAIC, eBook Purpose and Benefit………………………………………….3 Six Sigma Project Execution Visual ……………………………………………………...6 eBook Objectives………………………………………………………………………….7 Project Selection and Execution Cycle……………………………………………………8 Define Phase and Sub Steps………...……………………………………………………12 Measure Phase and Sub Steps………...…………………………………………………38 Analyze Phase and Sub Steps………...………………………………………………….57 Improve Phase and Sub Steps………...………………………………………………….73 Control Phase and Sub Steps ………...………………………………………………….88 Strategic Business Process ……………………………………………………………..102 About the Author ……………………………………………………………………..104 APPENDIX 1 Cost of Poor Quality……………………………………………………106 APPENDIX 2 Quality Terms Glossary ………………………………………………..125 APPENDIX 3 Thirty Questions ………………………………………………………..135 APPENDIX 4 Project Charter Form……………………………………………………138 APPENDIX 5 Business Case …………………………………………………………..146 APPENDIX 6 Define Tollgate Review ………………………………………………..151 APPENDIX 7 Measure Tollgate Review ……………………………………………...153 APPENDIX 8 Analyze Tollgate Review………………………………………………157 APPENDIX 9 Improve Tollgate Review ………………………………………………160 APPENDIX 10 Control Tollgate Review ……………………………………………...163 Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 6 APPENDIX 11 Transfer Process Ownership ………………………………………….166 APPENDIX 12 Project Initiation Checklist……………………………………………171 APPENDIX 13 Sigma Conversation Table ……………………………………………175 APPENDIX 14 Agenda Planning………………………………………………………176 TreQna University Products…...180 Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 7 Above note the DMAIC process of Six Sigma project execution, the short hand deliverables for each, and a few visuals of the common simple statistical tools associated for each phase. Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 8 Note the general objectives for this eBook appear in the graphic above. The Goal of typical Six Sigma project executions is to produce goods and services at a Six Sigma level and improve profitably. The Vision of typical Six Sigma project executions is for stakeholders relentlessly strive to learn their processes, satisfy their customers, and improve the organizations desired business results. The Strategy of Six Sigma implementation is as a data driven, structured approach, to manage all of the organizations key processes. This would include to quantifying problems, removing waste by attacking variation and defects and assisting in gaining the organizations desired business results. Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 9 Project Selection and Execution Cycle The Executive Management Team begins the Six Sigma project cycle. This team gathers information regarding the customer’s satisfaction with the products and services offered by the organization. The organizations competitors present another critical motivator for the need for change. The Executive Management Team gathers information from high level key product and service process mapping. The intent is to examine these processes, end to end, to discern if they are creating defects, defectives, or presenting breakthrough opportunities regarding the intended good health of the customer’s critical criteria requirements and expectations. The voice of the customer, the results of process mapping of key products and services and the current SWOT analysis of competitors versus the organizations desired business results all combine in the drafting of the organizations Strategic Business Plans. Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 10 The Strategic Plans become the center piece of all efforts towards which stakeholders strive to make breakthrough performance gains in capturing the organizations desired business results and competitive advantages. Six Sigma Projects become the method of choice for making and sustaining the competitive advantages and desired business results gains that are aligned to the organizations Strategic Plans. In the Define phase, you need to determine which opportunities will provide the biggest payoff for our efforts. As you will soon learn there are many sub steps to be worked through in the Define Phase. Part of this task involves describing the current state of various metrics of the project you have under study. The team will be gaining an understanding of how various metrics behave, if there are any important trends, if the data is relatively stable or are there outliers? The team will learn what the statistical distributions look like and are the distributions what we’d expect from this process. In addition to process mapping and flowcharting, some tools and techniques to consider during the Define phase include the following: Check sheets Pareto analysis Cause-and-effect diagrams Seven management tools for quality control (7M tools) Data mining or exploring information contained in your organizations data storages Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 11 Project Criteria Customer Impact: Financial Impact: Business Process: Learning and Growth: Time to Complete: Risk/Reward: Criteria for project selection Results or business benefits criteria Impact on external/internal customer requirements. Impact on core competencies or internal skills sets. Financial impact such as cost reductions, improved efficiency, Increased sales, market share gains, accurate predictions of short/long term gains. Urgency, lead time needed to address issues or capitalize on recognized opportunities. Trends, problems getting larger/smaller, what if we do nothing? Sequences or dependencies; are other projects or opportunities dependent on this project as a first priority? Do other projects need to be added first? What is the feasibility of resources, expertise, complexity and likelihood of success? Organizational impact criteria such as what knowledge’s to be gained about our customers, business, process, market, or stake holders? Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 12 Can cross-functional benefits be gained such as breaking down barriers and creating of “whole” process management? Results or business benefits criteria Urgency Trends Sequences or dependencies Feasibility Organizational impact Cross-functional benefits We now begin the DMAIC project phases and sub steps presentations that the project manager and team might follow during the execution of projects they may have under study. We will begin with Define Phase and sub steps and follow each in sequential order. Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 13 Note the graphic above identifies the main objectives of the Define Phase and provides a visual of a “process”. The main deliverables of this project execution phase includes; Define the Problem or Pain Define CTQ Determine Current State of the Process under study Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 14 This graphic provides a few of the more common tools used during the Define Phase of project execution by the team. Other common tools used by the team during this phase of project execution would include; Business Case Problem Statement Objective/Goal Statement Cost of Poor Quality Primary Metric Secondary Metric Team Charter Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 15 It should be noted this is not an exhaustive list of tools, techniques or methods that could be employed by the project execution team. Check the visual above to note even more tools and methods that can be used during this phase of the project execution. Do not rule out tools used in other phases of the project as they may apply during your specific project execution efforts. Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 16 Define Phase Step 1 The problem statement must also provide additional available data as necessary that may narrow focus to a predominant fail mode or circumstances responsible for a majority of the problem(s) observed. Note: If the problem statement does not include quantified measures, you will not be able to calculate the cost impact this problem presents. Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 17 Define Phase Step 2 Goals and objectives must be quantitative metrics explaining the actual performances versus the performance goals. Note: If your goals are not quantified, you will not be able to determine if the team is meeting or has met the project executions objectives. This failure may cause “scope creep” which is the extending of the projects executions of deliverables and timelines. Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 18 Define Phase Step 3 The baseline performance confirms and validates the team’s problem statement regarding the project under study. The baseline performance also provides a starting point to which improvement gains will be measured against. Note: The team must ensure that your elected metric is a true predictor of process performance. Gain agreement with your Management Champion regarding the metric of choice. The team’s performance will be determined based on this metric. Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 19 Define Phase Step 4 The team should identify the defects of the project they have under study by first defining those defects clearly. See the next few pages for an example of each Defect, DPO and DPMO. Six Sigma Project Execution Steps Http://www.treqnauniversity.org Page 20 This ends the DEMO of this wonderful eBook. You will discover the main benefits of owning your personal copy of this eBook on pages 3 and 4. Thank you for taking the time to explore this most useful eBook. Buy Your Copy Today The pre-release purchase of this eBook is $19.95. To obtain your advanced copy of this eBook please send your request to dr.charleswilson@comcast.net The final distribution links have yet to be determined. Likely this eBook will be located at WiZiQ and as well available at TreQna University. Please visit http://treqnauniversity.org/default.aspx to learn more about effective and unique “blended learning” and “be able to do” skills approach for Six Sigma, Managing Performance Excellence, Behavior and Leadership training. Charles E. Wilson, Ph. D.