The Strategy Session

New Blog Site

noreply@blogger.com (Jim Odom) — Thu, 01 Nov 2012 11:12:00 +0000

Just to let everyone know that has been following my blog posts, I have created a new website at www.jlodom.com. At the site, you can click on the link at the top of the page and it will take you to my blog. I will no longer be maintaining this site. Thanks and let me know what you think of the new format and website.

Jim

Questions to Ask Before Conducting a Kaizen Event

noreply@blogger.com (Jim Odom) — Sat, 13 Oct 2012 11:54:00 +0000

The following is a list of questions that you can use to understand a business process and assess the readiness of your organization to undertake a kaizen event.

Who owns the process?
Are processes documented?
Does the documented process follow the actual process?
Is the process repeatable?
Are their existing work standards and practices?
Are the work standards and practices being followed?
Are the work standards and practices adequate to perform the work properly?
Is the work area well organized?
Are there any metrics?
How are the metrics used?
How often are the metrics recorded?
Do the metrics tell employees how they are doing at any point in time?
What is the organization’s attitude toward change?
Who is involved in the process?
Whom does the process impact?
Who supplies the process?
Are the inputs to the process properly documented and specified?
Who is the customer of the process?
What are the outputs of the process?
Are the customer’s requirements properly documented and specified?
Can you identify any of the 7 wastes in the existing process?

Root Cause Analysis

noreply@blogger.com (Jim Odom) — Fri, 12 Oct 2012 10:51:00 +0000

Root cause analysis is the part of problem solving that tries to determine the root cause(s) of problems or anomalies that effect processes. It focuses on getting to the root cause and implementing corrective action versus addressing only the symptoms of a problem. The action of focusing on the root cause and implementing corrective action thus prevents the problem from reoccurring.

Problems may have more than one root cause and it's important to understand that and have the perseverance to identify them all in order to prevent the problem from coming back. How the problem is defined makes a big difference and a good problem statement can help tremendously.

There are several methods or processes that address root cause analysis, such as the 8D Problem Solving Process, 5-Step Process, etc. The following is a general process for determining root cause:

Obtain all the information and data you can concerning the problem. Define the problem and develop a good problem statement. If possible, use a control chart to determine if you are dealing with common cause or special cause variation. Another great tool I have used many times to help with clue generation is the Is, Is-Not.
Develop a time line for the events that led to the problem. Placing events in chronological order can help you make sense of the issue and put it into perspective.
Use the 5 Why tool to identify the causes associated with each step in the sequence towards the defined problem.
Identify all the factors that may have contributed to the problem. Use the 6Ms, i.e., Man, Machine, Method, Material, Measurement, and Mother Nature to help you identify the factors.
Identify corrective actions that would prevent recurrence.
Identify solutions. These solutions should be those that can be implemented quickly and are the most effective and least costly to implement.
Implement the solutions and ensure they are effective.

A good way to know for sure if you have the true root cause(s) is if you can turn the problem on and off. This is recommended if you have the luxury of being able to do it.

Other useful tools that can help you in collecting and analyzing data and information are:

Histogram and box-plots for variable data. Always plot the data you have.
Pareto charts for attribute data.
Control charts to determine if special causes are present.
Check sheets
Pictographs or concentration diagrams
Cause and effect diagrams
Data stratification
Comparison of extremes
PDCA

Measuring & Reducing Process Cycle Time

noreply@blogger.com (Jim Odom) — Thu, 11 Oct 2012 10:08:00 +0000

Cycle time is defined as the actual time it takes to transform inputs into outputs and is composed of two components: processing time and non-processing time. Processing time can further be divided into the three categories of real value-added, business value-added, and non-value-added.

Real value-added includes essential processes that transform the inputs into outputs that are necessary to meet customer's requirements and that the customer is willing to pay for. Examples include:

Product development Fabrication Packaging
Materials procurement Assembly Delivery
Design Finishing After-sales service

Business value-added includes processes that are deemed necessary to support, control, and monitor internal business functions but have no perceived value to the customer. Examples include:

Scheduling Career planning Recruiting
Invoicing Filing Auditing
Marketing Selling Record keeping

Non-value-added includes nonessential processes that contribute to neither customer satisfaction nor business operations (7 forms of waste). Non-value-added activities increase cycle time and add costs rather than value. In addition to nonessential processes, the component of non processing time fits into this category. Examples of non-value-added time include:

Redundant inspections Rework Waiting
Filling in forms Excessive transit Storage

Eliminating all activities except for those that add real value improves the cycle time. Further improvements are gained by streamlining the remaining essential tasks.

The process of reducing process cycle time usually starts by developing a current state value stream map, identifying all the process steps and associated cycle times for those steps. Wastes are then identified and shown as opportunities for improvement. Further gains can be made by streamlining the real value-added activities and putting together a future state value stream map.

Study Shows Reduction in Cycle Time by 25% Doubles Productivity & Reduces Cost by 20%

noreply@blogger.com (Jim Odom) — Wed, 10 Oct 2012 08:57:00 +0000

In their 1990 book, Competing Against Time: How Time-based Competition Is Reshaping Global Markets, George Stalk and Thomas Hout investigated reducing time as a means of securing a competitive advantage. In summary, they offer four rules of responsiveness:

1/4-2-20 rule: If time is compressed in a process by one-quarter, labor productivity doubles, and costs are reduced by 20 percent.
3/3 rule: The time lost in most processes is equally attributed to three sources:

Waiting for the completion of a unit of work, either for the product itself or for a required component that is not yet available.
Waiting for physical or intellectual rework to be completed, and
Waiting for a management decision to send work to the next step.

.05 to 5 rule: Studies show that value is created in only .05 to 5 percent of the total time employed in a process.
3 X 2 rule: When time is compressed in an organization's processes to be at least 50 percent faster than the competition, growth at three times the industry's average is likely, and profits of two times the industry average are possible.

Other benefits of reducing cycle time cited in their book include:

Price premiums: Customers perceive products and services provided in less time as more valuable.
Reduced risk: By producing products and services faster, companies can rely on shorter forecasts, which are likely to be more accurate than longer range forecasts.
Increased market share: Consumers tend to have more confidence in responsive suppliers and tend to reward them with their business.

Guidelines & Tips for Successful Lean Six Sigma Projects

noreply@blogger.com (Jim Odom) — Mon, 08 Oct 2012 00:15:00 +0000

The following are guidelines and tips that I have found over the years to aid in the deployment of a Lean Six Sigma initiative. Lean Six Sigma is a management strategy and like any strategy needs to have the necessary resources and commitment allocated to make it successful.

Top Management

· Develop and implement a steering committee to oversee the progress of your lean six sigma initiative. This group should meet monthly to identify opportunities and weaknesses and make any corrections.

· Select a deployment champion to lead the charge and be responsible for the initiative. This person reports the monthly metrics, i.e., number of projects in progress, monthly savings, number of people certified, etc. They can work with department managers to determine the number of MBB’s, BB’s, and GB’s needed to support the various areas.

· Attend a 2 – 3 day overview of Lean Six Sigma to learn what it is all about and understand your role in the process. Better yet, go through the GB and BB training to understand the tools and get certified. This will convey to everyone that you’re serious about this initiative.

· Make sure your middle managers understand the Lean Six Sigma process. Have them take a 2 – 3 day overview so that they understand their responsibilities, know how to select projects and how to conduct a tollgate review.

· Lean Six Sigma is a management strategy and must be managed to be successful. This means following the process and giving the participants the time to work their projects, conduct tollgate reviews, etc.

· Celebrate successful projects and recognize the team members. Communicate these successes to the rest of the organization through your newsletters, bulletin boards, e-mails, etc. Have a quarterly or semi-annual meeting to high-light outstanding projects.

· Steer your organization toward having “process owners,” especially where processes involve different functional areas. These are typically processes that are prone to waste and inefficiencies, i.e., process inputs and outputs not clearly defined and unclear handoffs between the various functions involved. I often use the analogy that this needs to be as seemless as passing a baton in a 4 X 100 relay race where it is automatic and doesn’t require any thought.

· Tie part of your executive’s compensation to their Lean Six Sigma project savings.

· Give the MBB’s and BB’s the tools to be successful, i.e., laptops, Minitab software, etc.

Steering Committee

· This committee should be comprised of top level personnel that come from the different functional areas. They need to understand the Lean Six Sigma process and be able to guide the organization in its implementation.

· Determine the level or organizational involvement. How many BB’s in each area? Number of MBB’s? Full-time vs Part-time? Etc.

· Determine certification requirements. How many projects before someone is a BB or MBB?

· What training curriculum best suits your organization? Initial focus should be more on the process and not the tools. Make sure the participants have a firm understanding of the basics and the thought process. Additional tools that are more sophisticated can be added latter.

· Don’t overemphasize statistics. You want to develop good problem solvers and project leaders that can improve processes and make them more efficient, not statistical analysts.

· Keep your initial BB projects small in scope. You want to make sure the candidates have a good understanding of the process and have a high likely- hood of success.

· Meet monthly to discuss what’s going well and what needs improvement. Review the metrics you’ve established. Determine what metrics you’ll communicate to the organization.

· Focus initially on developing the expertise to sustain the initiative. Select your best and brightest to become BB’s and MBB’s.

· Develop guidelines for how long a person will remain a BB or MBB. Since these people are typically your “best and brightest,” look for opportunities to promote them to the next level.

· Develop a project selection process so that projects support your organization’s goals and objectives. Don’t let BB’s, MBB’s, and GB’s select their own projects.

Deployment Champion

· This is a necessary and vital role, especially in medium to large organizations! Organizations that elect not to fill this position lack consistency and cause functional areas to go off and create their own thing.

· This person should learn as much as they can about how successful companies have deployed Lean Six Sigma, i.e., what works vs what doesn’t work.

· The role of the deployment champion is to coordinate the Lean Six Sigma deployment. This person has the responsibilities to:

o Lead and guide the steering committee.

o Along with the steering committee, establish the yearly goals and objectives.

o Gather and communicate the monthly metrics.

o Establish and lead an organizational network of MBB’s and BB’s to gather project information and monthly metrics from functional areas.

Establish and communicate the certification requirements.

o Establish and maintain the training curriculum.

o Establish, maintain, and communicate the training schedule for GB’s, BB’s, and MBB’s.

o Establish the requirements for GB and BB projects, i.e., scope, team size, length of project, etc.

o Establish and maintain project templates, training aids, report formats, etc. used throughout the organizations

o Develop and maintain a repository for projects after they are completed.

o Work with functional area champions and sponsors to identify project opportunities.

Project Sponsors & Champions

· Sponsors and champions must constantly be on the lookout for good project opportunities. What area or process has problems or needs improved?

· Select project BB’s and team leaders that can get things done and aren’t afraid to make things happen.

· Stay involved with your improvement team. Make sure you understand where they are in the process. Demand weekly updates by the team leader. Attend team meetings.

· Demand tollgate reviews at the end of each DMAIC phase. Make sure you know what questions to ask the team or team leader.

· Be on the look out for good BB or MBB candidates. Is there someone in your organization that can benefit from these skills? Is there someone that you would like to promote if they had these skills?

· Periodically, ask the team leader if there are having any issues that you can help them with. Are they having difficulty with a particular team member? Is everyone participating and showing up for team meetings? Is there another functional area that is not cooperating?

· Make sure you work with the process owner to ensure a smooth handoff at the conclusion of an improvement project.

· Promote the use of Lean Six Sigma within your functional area. Share best practices with your BB’s and MBB’s. What is working well? What do you need to improve?

Selecting Projects

· Balance your project selection based on solid criteria. Look at the feasibility and impact to the organization. Good project selection can be a key to early success.

· Try to balance efficiency/cost cutting with externally-focused, customer value projects. Putting all your energies into short-term savings reduces your chance of boosting customer satisfaction and loyalty.

· Don’t choose too many projects. Improvement needs nurturing by leaders, especially at the beginning. It is tempting to overextend your resources and capabilities.

· Don’t create “world hunger” projects. Better to get a too small project done quickly than to have a too big project drag on for months.

· Make sure to prepare for an effective handoff to the improvement team. You can give them a good start by clearly defining the issues and objectives.

Applying Lean Six Sigma in a Job Shop

noreply@blogger.com (Jim Odom) — Fri, 05 Oct 2012 10:37:00 +0000

“How does Lean Six Sigma apply in a job shop?” The simple answer is “very well.”

In a job shop, the typical production quantities are one, two, or possibly three pieces or units. The question always becomes “how can I get a good representation or sample of the process with such a limited number of pieces or units?” In this case you really can’t unless you can accumulate a number of pieces of the same job over a period of time. Yes, there are some short-run SPC techniques that can be used to look at variable data. But instead of focusing on the number of pieces, the focus can be on the process, i.e., eliminating waste and reducing the variation in each individual process step.

I am currently working with a company in the Youngstown area that designs and builds equipment. Typical quantities are one to five units. They cut steel, fit, weld, machine, and assemble the equipment. Their focus has been on eliminating waste, reducing variation and making it easier for the operator to do their job in each of the different areas, i.e., cutting, fitting, welding, machining, and assembly. They look at downtime associated with each job and determine if it is due to lack of material, lack of tools, etc. They also are looking at reducing the number of defects associated with each area and have several projects focused on them.

In addition, they have found that some of the procedures they use to handle non-conforming material, how they assign tooling and material to jobs, etc. are lacking and they are in the process of making them better. It’s been interesting to watch and listen to the new language that has emerged within the group. They now talk about inputs and outputs of process, the 7 forms of waste and the 6M’s. They are getting away from hearsay and opinion and are now basing their decisions on data and facts.

How To Measure & Improve the Efficiency of Your Processes

noreply@blogger.com (Jim Odom) — Thu, 04 Oct 2012 11:24:00 +0000

Efficiency is about doing things right. In the simplest terms, it is the elimination of waste – waste of time, waste of resources, and waste of money. Efficiency measures compare actual performance to the best possible. An example is the actual time it takes to deliver goods or services relative to the fastest.

There are numerous ways of measuring efficiency, but typically they fall into the three categories of cost, variation, and cycle time.

Cost measures the resources consumed in the process of making the goods or providing the service.
Variation measures the difference the customer sees in the goods and services over time.
Cycle time measures the total elapsed time required to provide those goods and services.

Efficiency is measured within the process and is not measured by examining products after they are produced or by customer feedback. These process measures are the different variables that control the integration of the 6M’s, i.e., Man, Machine, Material, Method, Measurement, and Mother Nature. Eliminating the waste and variation in these process variables will make your processes more efficient.

Making the Problem Go Away Requires Understanding the Current Situation

noreply@blogger.com (Jim Odom) — Wed, 03 Oct 2012 12:11:00 +0000

"Just make the problem go away!"

How often have you heard someone say that in your organization? What ends up happening is that we take some action and throw several solutions at a problem before we understand the current situation. People are rewarded for firefighting and sometimes the problem does go away only to recur later because it was not sufficiently understood.

Part of the problem is that many managers equate action with making improvement. The more action items we have, the more improvements are happening. The causes have not been discovered and eliminated, but because of the extra attention the problem gets better. Future problem solving capability suffers because this type of action supports opinions, hear-say, and “We tried that before and it didn’t work!” mentality.

Understanding the current situation takes some work, but doesn’t have to be too complicated. Using simple tools and techniques can give you great insight into the root causes of problems. Start by mapping the process using a process map, a deployment flow chart, or a value stream map. Identify a key process indicator (KPI) and measure to determine whether the process is in “statistical control.” Is the variation due to common cause variation or is there some special or assignable cause that needs eliminated? Plot your KPI to determine whether a “shift strategy,” “squeeze strategy” or both are needed to eliminate the variation. Analyze the process to determine which of the 6M’s (Man, Machine, Material, Method, Measurement, or Mother Nature) are contributing to the variation. At the same time you can identify any of the 7-Waste forms that exist and eliminate them.

Using the above approach leads to solutions that are simple, effective, and less costly. In addition, this approach improves an organizations capability to solve future problems and causes them to rely on data-driven decisions and not hear-say or opinion.

Use Internal Audits to Identify Process Gaps & Deficiencies

noreply@blogger.com (Jim Odom) — Mon, 01 Oct 2012 10:27:00 +0000

A technique to help you improve your manufacturing or transactional processes and make them more effective is to simply audit them at some defined frequency. Processes that aren't working well, i.e., generating rework, take too long, out-of-control, etc. are usually caused by too much variation or waste in the system.

Not long ago, I worked with a company that had a problem with accounts receivable past dues. When we analyzed what was going on, it became quickly apparent that the issues were mostly due to a lack of procedures and work instructions. I asked if they had an internal audit process and they quickly responded that it was a waste of time and that they did not want to audit their professional people. If an internal audit had been used, it would have quickly found the lack of procedures and work instructions and they would have been well on their way to solving or reducing their problem.

As I have said many times before, all variation is a result of the 6M's, i.e., Man, Machine, Method, Material, Measurement, and Mother Nature. Especially in transactional processes, where Man and Method are the predominate sources of variation, an effective internal audit process can be of great value to help you uncover gaps and deficiencies in your systems and make them more efficient.

More Organizations & Managers Need to Think Process!

noreply@blogger.com (Jim Odom) — Fri, 21 Sep 2012 13:48:00 +0000

In the last several months I have worked with various clients to improve their transactional processes. These projects were in the areas of finance, human resources, IT, purchasing, and customer service. A common theme that surfaced during these projects is that seldom do organizations spend enough time thinking about the process that their employees deal with on a daily basis. How easy is it for the employee to do their job?

Many times employees struggle in doing their job because things are not well defined and documented. How to deal with situations that are not defined and in which no method exists can cause people to "improvise" and do things that create variation, upset customers, and cause processes to go out of control.

I especially see a lot of these problems when different functional areas are involved. One function hands off a task to another without knowing if they have satisfied and given that group the necessary information to take the next step. If asked, "Who owns the process?" no one knows and a lot of finger pointing takes place. I often use the analogy that the hand-off from one functional area to the next needs to be seamless, much like the passing of a baton in a relay race. This only happens if the inputs and outputs of each functional area are well defined.

The responsibility to define and document a process lies with management. They need to understand the issues that employees have in doing their jobs and determine the best method or process for resolving them. "What are the inputs and outputs of each process step?" "What does the next department need from me in order to take the next step in the process?" Understanding these issues, and defining and documenting the process will alleviate a lot of problems and make it easier for the employees to do their job.

Helicopter Exercise Creates Common Language for Admin Process Improvement

noreply@blogger.com (Jim Odom) — Mon, 30 Jul 2012 10:17:00 +0000

A Black Belt student of mine made an interesting observation after we had some team competition doing the helicopter DOE exercise last week. The class is made up of different administrative functions from IT, Purchasing, HR, and Finance. He stated that it was remarkable that we had 13 people from these four different groups all on the same page, talking the same language, i.e., factors, levels, responses, replicates, etc. and all working to achieve the same goal of maximizing the hang time of the helicopter.

This is the real power in giving an organization a common problem solving process: a common language, a common set of tools and techniques, and a step by step approach to making improvements. Give them these things, then get out of their way and just watch what they can accomplish! It never ceases to amaze me!

Be Aggressive in Developing a Lean Six Sigma Goal Statement

noreply@blogger.com (Jim Odom) — Fri, 04 May 2012 11:06:00 +0000

The goal statement goes hand-in-hand with the problem statement of your project and should be part of your project charter. Whereas the problem statement describes the symptoms of a problem, the goal statement defines the results expected from the team's work. Goal statements typically have three elements:

Description of what is to be accomplished. A typical goal statement will start with "Increase, " "Reduce," or "Eliminate." An example would be, "Reduce errors on supplier purchase orders."
Measurable target for the expected results. The target should put a number on the expected results for cost savings, defect elimination, increased revenue, decreased cycle time, etc. The measured target then becomes the measure of the team's success. Continuing our example used above, "Reduce errors on supplier purchase orders by 50%."
Projected completion date. The date may change, but setting a date helps the team focus and get down to business. Having a completion date may shorten the project's cycle time which may stretch out if no date is set. Now our example reads: "Reduce errors on supplier purchase orders by 50% by July 1, 2012.

Goal statements should be aggressive especially at the outset of a Lean Six Sigma initiative when there is a lot of low hanging fruit. Most organizations aren't interested in 5% or 10% improvement at that stage. Also, goal statements are a way for the team to know that they should close the project and prevent scope creep from entering in. If the team has met it's goal, close the project and start another one.

Lean Six Sigma Problem Statement

noreply@blogger.com (Jim Odom) — Thu, 03 May 2012 11:28:00 +0000

The charter problem statement is a concise description of what's wrong and needs to be fixed. It describes the opportunity and the pain that is being felt as a result of the problem. In addition, the problem statement serves to:

Validate the team understands the problem.
Solidifies consensus and ownership of the team members.
Allow the team to begin focusing on a problem that is neither too narrow nor too broad.
Allow the team to assess the validity of the data supporting the definition of the problem.
Helps the team establish a baseline against which progress and results can be measured.

Problem statements answer the following questions:

What's wrong?
Where is the problem appearing?
How big is the problem?
What impact does the problem have on the business?

Problem statements must not:

State an opinion about what's wrong.
Describe the cause of the problem.
Assign blame for the problem.
Prescribe a solution.
Try to combine several problem statements into one.

Teams may have a hard time clarifying the problem statement especially if initial data isn't available and may have to modify the statement during data collection in the measure phase. This is alright, because without data our early statements of problems are often little more than guesswork.

Reducing The Cost of Product and Service Complexity

noreply@blogger.com (Jim Odom) — Wed, 02 May 2012 10:12:00 +0000

The complexity of products and services is something that needs constant attention. Different versions, options, offerings, etc. add confusion, cost, and waste to any business process. Most commonly the waste is in the form of increased work in process (WIP), increased inventory, and increased processing and defects.

Companies that want to reduce complexity generally have two options, either to standardize by using Design for Lean Six Sigma (DFLSS) or by applying the tools of Lean Six Sigma and trying to become more efficient and flexible.

Countless examples of standardization can be found. It has been said that the success of Southwest Airlines can partially be contributed to the fact that they have one airplane. This has numerous benefits that include lower spare parts inventory, easier airport terminal access, common maintenance practices, greater pilot flexibility, etc. American airlines, on the other hand, had at least 14 types of aircraft at one time. They have since reduced the number to 7.

The tools of Lean Six Sigma can be used to reduce waste in the current processes and make them more efficient and flexible. Setup reduction and defect and error prevention can be applied to a reduced number of tasks. When offerings aren't profitable contributors, they must be optimized out of the mix.

Complexity reduction can have enormous competitive advantage and can be a potent tool to increase customer value.

Understanding Why Customers Complain

noreply@blogger.com (Jim Odom) — Tue, 01 May 2012 11:22:00 +0000

Improving customer satisfaction and understanding why customers complain are certainly worthy Lean Six Sigma projects and deserve attention. Companies need to understand why customers complain, why some unhappy customers' don't complain, and what customers' expectations are about their complaints. Customers usually complain for a number of reasons: to obtain a refund or compensation, to vent their anger, and to help improve a service or product.

A study conducted a few years ago, found that only 5 to 10% of dissatisfied customers formally complain. Often unhappy customers just quit buying the product or service. In order to improve your organizations ability to understand why customers complain, you should follow these basic principles:

Make it easy for your customers to give feedback. Companies need to provide various ways customers can provide feedback. Comment cards, surveys, toll-free numbers, and website links are the most common.
Be proactive. Procedures need to be implemented and employees trained and empowered to make decisions.
Learn from the feedback. Feedback should be appropriately documented and acted upon.

I've read other studies that found the cost of getting new customers far exceeds the cost of keeping the ones you currently have. In today's economy, understanding and acting on your customers' concerns before they become a problem can go a long way in improving their satisfaction with your products and services.

Get Your Data Collection Right

noreply@blogger.com (Jim Odom) — Mon, 30 Apr 2012 10:57:00 +0000

Data can be either qualitative or quantitative. Qualitative data characterize things that are sorted by type, such as fruit (oranges, pears, apples, …), defects (scratches, burrs, dents, …), or operators (Jim, Harry, Martha, …). Qualitative data are usually summarized by counting the number of occurrences of each type of event. Quantitative data, on the other hand, characterizes things by size which requires a system of measurement. Examples of quantitative data are length, time, and weight.

There are 5 steps in the data collection process:

1. Clarify your data-collection goals. Make sure the data you collect will give you the answers you need. You can use these questions to help you identify your data-collection goals:

Why are you collecting data?
What questions do you want to answer?
What will you do with the data?
How will the data help you?
What patterns or relationships might you want to explore?

Consider how you can possibly stratify the data. Think of the following categories:

Who – which people, groups, departments, etc. are involved
What – relevant machines, equipment, products, services, etc.
Where – the physical location of the defect or problem
When – time of day, day of week, or step of the process involved

2. Develop operational definitions and procedures. Operational definitions tell you how you should measure something. They help you specify who should collect the data using what instrument, what data-collection form, and whether they should measure every item or just a sample of items.

3. Validate the measurement system. Conduct a Measurement System Analysis to make sure your measurement system is capable.

4. Begin data collection. This involves training the data collectors, piloting and error-proofing the data-collection process, and deciding how you will display your data.

5. Continue improving your measurement consistency. Check to make sure that everyone is following the data-collection procedures.

Remember, the results you get and the decisions you make depend on the accuracy and integrity of your data. Make sure you take the time to plan your data collection process and validate your measurement system.

TRIZ Principles Aid In Design of Products, Processes, and Services

noreply@blogger.com (Jim Odom) — Fri, 27 Apr 2012 11:36:00 +0000

TRIZ is a tool to help us see design opportunities and provide us with principles to resolve, improve, and optimize product, process, and service designs. It is also a useful innovation and problem solving tool.

TRIZ was developed by Genrich S. Altshuller of Russia. Working in the Russian patent office, he was troubled by the common misconception that invention was the result of accident or evolution and he sought to discover a methodology for inventing. During his research of the world's patent base, he made four key observations:

There are five levels of invention:

Level 5: Rare scientific discovery of new phenomena (less than 1%)
Level 4: New generations using a new scientific principle to perform the primary functions of the system (4%)
Level 3: Fundamental improvements to an existing design paradigm by methods known outside the industry (about 18%)
Level 2: Minor improvement to an existing design paradigm by methods known within the industry (about 45%)
Level 1: Routine design problems (no innovation) solved by known methods results in simple improvement (about 32%)

Inventive problems contain at least one contradiction. In his research, Altshuller recognized that the same design contradictions had been addressed by a number of inventions in different areas of industry. He also saw the repetition of the same fundamental solutions or principles to resolve these contradictions.
These principles can therefore be considered solution patterns or basic inventive principles. An inventive principle is a best practice that has been used in many applications. Altshuller recognized that there were 40 fundamental inventive principles.
There are standard patterns of evolution. To create a product or service, analogies can be made to situations for similar concepts. The evolution of the design is examined, then the analogy is applied to predict the future of the design of interest.

TRIZ is a combination of algorithms and principles. Study of the world's patents shows that these same principles have been used in innovative solutions in many different fields and industries. Using these algorithms and principles can help your organization make evolutionary jumps in the design of your products, processes, and services.

Operational Definitions Make Processes More Consistent

noreply@blogger.com (Jim Odom) — Thu, 26 Apr 2012 11:42:00 +0000

Operational definitions are defined as a clear description of what is to be observed and measured, such that different people taking or interpreting the data will do so consistently. It answers the questions: "What do we mean by a defect?" "A service?" "How do we measure a characteristic?"

Here are a few examples that occurred because there wasn't an operational definition:

Recall the Mars Polar Orbiter that crashed onto the planet surface because a group of engineers had written procedures in English units (pounds-seconds) and the computer interpreted the data in metric units (newton-seconds).
Or think back to the Florida ballot recounts in the presidential election of 2000: how consistently do you think people interpreted a “pregnant chad”?
Large account receivables due to different interpretations of "net 30" between the customer and the accounting department.

Having clear operational definitions would certainly have helped in these situations! If things are unclear in your organization, maybe operational definitions would help. Here are some things to consider when you develop your operational definition:

Different ways people interpret the same words.
Changes that might emerge that require special interpretation.
Events or observations that can fit under more than one grouping or that might be interpreted or measured several ways.

To develop your own operational definition:

Ask a team member to write a draft definition of the problem, defect, or measure. Elements should include: What are you trying to measure? What the measure isn't? Basic definition of the measure. How to take the measurement in detail.
Ask different team members to read the definition and try to shoot holes in it. Is every word understandable? Make revisions as needed.
If relevant, check the definition with customers. Is it exactly the same as theirs?
Develop job aids if appropriate.
Have people who were not involved in developing the definition apply it and watch for problems and sources of confusion.
Finalize the definition and train the appropriate people in its use.

To be consistent, how you define and measure things is extremely important. Don't overlook the importance of having and using operational definitions!

Lean Six Sigma Training System

noreply@blogger.com (Jim Odom) — Wed, 25 Apr 2012 10:35:00 +0000

As I have said many times before, Lean Six Sigma is a management strategy and must be understood by everyone in the organization. It is not enough that a few people get trained as Black Belts or Green Belts and then have sponsors and champions that do not understand their roles in project selection and tollgate reviews.

An overall training system for each of the Lean Six Sigma roles is a key element of the deployment plan. A training schedule for the initial wave of Black Belts is needed at launch. As more people in various roles are involved, new employees hired, and advanced training is needed, a functioning training system will need to be developed. A well thought out system that identifies all the training needs of all the roles, and an ongoing system to continuously satisfy these needs must be included.

To ensure your Lean Six Sigma initiative is ongoing and sustainable, make sure everyone involved in your organization understands their role in the process and gets the proper training.

Use Comparisons to Understand Process Variation

noreply@blogger.com (Jim Odom) — Tue, 24 Apr 2012 12:06:00 +0000

To understand and eliminate process variation, I tell my students to try to use comparisons as much as possible. Here is an example to illustrate the point.

When dealing with attribute data, you can use a control chart to make this comparison. Determine what set of conditions contribute to the acceptable and unacceptable areas using the 6Ms, i.e., Man, Machine, Method, Material, Measurement, or Mother Nature.

There are many samples when the defective rates are very low and also when they are very high. Is that difference because of different operators, different machines, different lots of material, different methods being used, etc. It is your job to determine the largest sources of variation in the process and put controls in place to eliminate or reduce them!

Addressing Stakeholders Concerns Can Make Your Project Smoother

noreply@blogger.com (Jim Odom) — Mon, 23 Apr 2012 10:16:00 +0000

Stakeholders are people who will be affected by the project or can influence it but are not directly involved with the project work. They could be the customer, supplier, champion, sponsor, department head, employees -- anyone who may be interested in the outcome of the project. It is important that you understand who these people are, understand any concern they may have, and communicate to them on a regular basis.

An easy way to do this is to establish a communications plan that should include the following steps:

During the Define phase, identify the stakeholders involved in your project.
Identify the main concerns each group of stakeholders might have regarding the project.
Develop a plan to give each group of stakeholders a report on the project’s progress and to address their main concerns.
Throughout the project, continue to regularly communicate with these stakeholder groups.

A simple matrix, such as the following, can help you with this process:

Understanding your stakeholder concerns, addressing them, and communicating often will alleviate problems as you proceed in your project.

Understanding Customer Requirements

noreply@blogger.com (Jim Odom) — Wed, 18 Apr 2012 08:36:00 +0000

Understanding what your customers really want is sometimes frustrating for a new group of Lean Six Sigma students to grasp. Customers may not fully understand what they want, or they can be awfully vague. In addition, their attitudes may change over time. It is usually easier for organizations that already have an effective system for translating the Voice of the Customer (VOC) into measurable customer requirements for teams to validate customer specifications and start to gather data immediately. Without this data, getting the relevant customer input will take some time and effort.

Teams should be on the lookout for two critical categories of customer requirements, output requirements and service requirements.

Output requirements are the features of the final product and service delivered to the customer.
Service requirements are more subjective ways in which the customer expects to be treated and served during the process and answer questions concerning "How should we interact with the and treat customers during our transactions?" These requirements usually surface during "moments of truth" when customers come in contact with your organization's products, services, and employees.

A clear understanding and attention to the needs of customers is mandatory and will require a combination of discipline, persistence, creativity, and sensitivity.

Understanding Team Dynamics

noreply@blogger.com (Jim Odom) — Tue, 17 Apr 2012 08:32:00 +0000

Being on a Lean Six Sigma team can be a very rewarding experience and at the same time very challenging. As a team member, you can experience highs and lows, good days and bad days. Understanding this in advance and knowing that this is part of the normal team development can help you cope with these emotions. Team development is often described in four stages: Forming, Storming, Norming, and Performing.

Forming is a period when team members get to know each other and start to understand their responsibilities. People generally have some anxiety about getting involved and are uncertain about how they'll fit with the team and the role they'll play.
Storming is where reality starts to set in and a team member may swing from optimism to uncertainty. The task may seem overwhelming and energies may be channeled against one another rather than on the problem that needs fixed.
Norming is a time where team members start to understand that the DMAIC process will do the job for them and that there is light at the end of the tunnel. Team members start to gain respect for one another and are more willing to help each other. Norming usually occurs with the help of a coach helping the team to narrow their scope and getting them calmed down and settled on the task at hand.
Performing generally occurs when the team completes it's analysis and starts to improve and control the process. The team gets a sense of accomplishment when real changes are being made and can take satisfaction in their achievements.

Teams may go through several cycles of the four phases as they go through DMAIC, especially when they begin to improve things and it involves major changes in how members do their individual jobs. These periods may not last very long, but it is important to realize that they may occur and the team needs to be ready to deal with them.

Team Logistics for Lean Six Sigma Projects

noreply@blogger.com (Jim Odom) — Mon, 16 Apr 2012 08:40:00 +0000

Starting a new Lean Six Sigma project can be fun and exciting. It's an opportunity to fix or improve something that is not working well in the organization. In order to make sure your Lean Six Sigma project runs as smooth as possible, there are some basic logistic questions you need to address.

Frequency of meetings? In order to get momentum, I'd suggest the first three or four meetings be at least every week. There's a lot to do in the early meetings. Later, meetings can be spaced out to every two weeks, especially when data is being collected or your waiting to implement your solution or determining it's impact.
Meeting length? You don't want to cut yourself short, so most meetings should last at least two hours. If the team is working on a particular phase deliverable (contract, process map, MSA, FMEA, etc.) the time could be longer. A good strategy is to initially work through a deliverable, then give the team a few days to digest their work before getting back together to review and put together the final version.
Meeting attendance? Meeting days and times should be scheduled so everyone is available to attend the meeting. There will be days when someone is absent, but you should meet anyway. Don't lose momentum. If possible, get the absent person to communicate their ideas to another team member who can then communicate them to the rest of the team. If a person says their too busy, the team leader should try to work it out with the person, or possibly get the project sponsor or champion involved.
Meeting in person? Sometimes it is difficult for everyone to meet in person and this is a common challenge you have to work around. Teleconferences and the use of email are a good substitute. I have participate on many projects using teleconferences and emails with great success.
Team members? Make sure you get the right people involved in the project, people who know the process being studied very well, and who might inherit the solution the team produces. Try to get people that are vocal about the process and that aren't afraid to express their views. Process experts may be called in to share special knowledge as required. Sometimes you may run into a situation where a person's boss may say someone is too busy to be on the team. In that case the team leader will want to get the project sponsor or champion involved.
Communication? Meeting minutes should be distributed to team members after every meeting, detailing actions taken, results, and assignments. The team leader should make it a point to keep the project champion and sponsor in the loop and keep them aware of the team's progress.

Taking some time to think about these issues before your project begins can help you set some ground rules and get your project off to a good start.