Measure Perance sigma.ppt

MeasurePerformance IntroductionandDetermineWhattoMeasure 1 0DefineOpportunities 2 0MeasurePerformance 3 0AnalyzeOpportunity 4 0ImprovePerformance 5 0ControlPerformance 1 1ValidateBusinessOpportunity1 2DocumentandAnalyzeProcesses1 3DefineCustomerRequirements1 4BuildEffectiveTeams 2 1Determinewhattomeasure2 2Managemeasurement2 3Understandvariation2 4DetermineSigmaPerformance2 5Excellentteamperformance 3 1processstratificationandAnalysis3 2determinerootcauses3 3validaterootcauses3 4managecreativity 4 1Generateimprovementideas4 2evaluateandselectsolution4 3presentrecommendations4 4Implementchange 5 1DevelopandExecutepilotplan5 2planandimplementsolution5 3processintegration5 4closureandrecognition ReviewandTransition InSection1 4 welearnedhowto Understandtheroleofeffectiveteamsinprocessimprovement Applyteamevaluationtoolstoidentifyopportunitiestoimproveteameffectiveness Section2 0 MeasurePerformance coversthefollowingareas PreparedTeam 2 1Determinewhattomeasure 2 2ManageMeasurement 2 4DetermineSigmaperformance 2 3UnderstandVariation 2 5ExcellentTeamPerformance Summaryof2 0 MeasurePerformance 2 1DetermineWhattoMeasureUnderstandtherolethatdataplaysinprocessimprovementUnderstandthecauseandeffectrelationshipsthatoccurinsidetheteam sprocessDeterminetheindicatorsneededtoevaluatecurrentprocessperformance2 2ManageMeasurementUnderstanddifferenttypesofdataandhoweachtypecanprovidetheteamwithdifferentinsightsandknowledgeofaprocessDevelopoperationaldefinitionsanddatacollectionplansthatbuildvalidityandconsistencyinthedatawhichtheteamgathers2 3UnderstandVariationUnderstandtheconceptofvariationandhowaprocesscanbeevaluatedbyassessingitsvariationovertimePlotandcalculatethevariationoftheteam sbusinessprocessGainhandsonexperiencewiththeuseofthestatisticalsoftwarepackageMINITABTM2 4DetermineSigmaPerformanceUnderstandthevariouscalculationsassociatedwithdeterminingprocesssigmaCalculatethesigmaperformanceoftheteam sprocessCalculatetherolled upSigmaforthebusiness2 5ExcelTeamPerformanceUnderstandtheroleofhigh performanceworkteamsinprocessimprovementUseteamdiagnosticsandassessmentstoevaluatetheteamstrengthsandopportunitiesforimprovingitsownperformance MeasurePerformance 2 1 DetermineWhattoMeasure 2 1DetermineWhattoMeasure ObjectiveToidentifydifferenttypesofmeasuresandanunderstandingofhowthemeasuresrelatetocriticalcustomerrequirements KeyTopicsPerformanceMeasurementInput Process andOutputIndicatorsIndicatorRelationships PerformanceMeasures CustomerValueAchieved ProcessElementsandIndicatorRelationships Effectiveimprovementrequiresinformationfromtheentiresupplier customer causeandeffectrelationship Process StartBoundary EndBoundary Input ProcessandOutputIndicators EfficiencyMeasuresCostpertransactionTimeperactivityAmountofreworkTurnaroundtimeVariabilityofanactivity EfficiencyMeasuresPercentdefectiveNumberoferrorsTotalresponsetimeInvoice billingaccuracyRevenue InputIndicators ProcessIndicators OutputPerformanceIndicators CTQ SCTP S ProcessOutputIndicatorsincludeCTQ s CTP s VOB VoiceoftheBusinessCBR CriticalBusinessRequirementsCTP CriticaltotheProcess VOC VoiceoftheCustomerCCR CriticalCustomerRequirementsCTQ CriticaltoQuality CTQ CTPExamples Criticalto TheCustomerTheMarket Criticalto TheBusinessTheRegulatorTheEmployees SuccessDerivedFromProjectFocusExample MedicalDiagnosticTubeLife After8projects January 96toMay 97averagetubelifedoubled ToplevelYisbigenoughtobeseenatOBUlevel anoperationalbusinessobjective FrequentlytheparentprojectdoesatleastaverificationofthistoplevelYwiththecustomer GBmaterialSIGMA CCR sandMultipleOutputIndicators Intheprevioussection teamstranslatedavarietyofVOCdataintocriticalcustomerrequirements Teamswerecarefultorecognizethatsomecustomerfeedbackandstatementsneedtobeclarified andthataprocessforspecifyingCCRsinvolvesconsideringkeyissuescustomersmayhavewithaproductorservice Fromtheseissues theteamwasabletospecifythecriticalcustomerrequirementsoftheprocessoutput SomeCCRsmaybemeasuredintermsofonespecificexpectationacustomerhas Othersmayrequireseveraloutputindicators ThetableshowshowoneCCRcanhaveoneorseveralassociatedoutputindicators SelectingtheRightProcessIndicators Inadditiontomakingsurethattheindicatorsprovidetheteamwithvalidandquantifiabledata teamsmustbesurethatwhattheyaremeasuringactuallyenablesthemtoevaluatethecauseandeffectrelationshipsoccurringinsidetheprocess Belowisalistofquestionsthateachteamshouldreviewafteridentifyingoutput process andinputindicators Areeachoftheprocessindicatorstrue predictors orleadingindicators ofatleastoneoutputindicator Dotheprocessindicatorsevaluateareasoftheprocessthatareknowntoadverselyaffectthequalityoftheprocessoutput Hastheteamidentifiedprocessindicatorsfortheprocessvariablesthatmostinfluencetheabilityoftheprocessinmeetingcriticalcustomerrequirementsandthereforetheoutputindicators Ifacriticalcustomerrequirementisnotmet doestheteamknowwhy rootcause Whatadditionalprocessindicatorsmaybeneededtoanswerthisquestion SelectingtheRightInputIndicators Inputindicatorsallowmeasurementoftheconsistencyoftheinputstotheprocess Dotheinputindicatorsmeasurethecriticalrequirementswehaveofoursuppliers productsorservices Dotheindicatorsmeasureelementsoftheinputthatareknowntoaffecttheabilityofourprocesstomeetcriticalcustomerrequirements Aretheinputindicatorstrue predictors orleadingindicators ofatleastoneprocessindicator Dotheindicatorsmeasureaspectsoftheinputthatwould withinaspecifiedtolerance eliminatesignificantinspection scrap reworkorexcessivecycletime IndicatorRelationships LinkOutputPerformancetoProcessandInputIndicatorsFirstlooktoestablishoutputindicatorsbecausetheyindicatehoweffectiveyourprocessisatmeetingCCRs Onceyouunderstandthekeyoutputperformancemeasures determinewhatkeyinputandprocessindicatorsyouneedinordertomeetthedesiredoutcomesandthereforesatisfycustomerrequirements Youcanusearelationshipmatrixtohelpshowtherelationshipbetweentheoutputperformancemeasuresandkeyinputandprocessmeasures Therelationshipmatrixwillhelpprioritizethemostimportantmeasures Note Thestrengthoftherelationshipisbasedonhowlikelychangesintheinputofprocessindicatorwillcausechangesintheoutputindicator LinkOutputPerformancetoProcessandInputMeasures Example CallCenterRelationshipofProcess InputMeasuresNote Thestrengthoftherelationshipisbasedonhowlikelychangesintheinput processmeasurewillcausechangesintheoutputperformancemeasure StrongRelationshipweakRelationship mediumRelationshipBlankNoRelationship ReviewandTransition In2 1DetermineWhattoMeasure welearned TherolethatdataplaysinprocessimprovementThecauseandeffectrelationshipsthatoccurinsidetheteam sprocessHowtodeterminetheindicatorsneededtoevaluatecurrentprocessperformanceIn2 2ManagementMeasurement wewilllearn ThedifferenttypesofdataandhoweachtypecanprovidetheteamwithdifferentinsightsandknowledgeofaprocessHowtodevelopoperationaldefinitionsanddatacollectionplansthatbuildvalidityandconsistencyinthedatawhichtheteamgathers MeasurePerformance2 2 ManageMeasurement 2 2ManageMeasurement objectiveToestablishadisciplineandamethodologytobecost efficientandeffectiveincollectingdatatomeasureperformance KeyTopicsDataCollectionOperationalDefinitionMeasurementPlanPerformanceDateVersusCauseDataSampling 2 1DetermineWhattoMeasure 2 2ManageMeasurement 2 3UnderstandVariation 2 4determineSigmaPerformance 2 5ExcelTeamPerformance DataCollection Measurementmanagementstartswithadatacollectionmethodology DataCollectionMethod OperationalDefinition Step1 OperationalDefinitionAnoperationaldefinitionisaconceptthathelpsguidetheteam sthinkingonwhattheyneedtomeasureaswellasthekeyattributesofthemeasure what how andwho Itprovidesthefoundationfortheteamtoreachagreementandbuildconsistencyandreliabilityintodatacollection Thishelpsensureanypersonusingtheagreed ondefinitionwillbemeasuringthesamething OperationalDefinitionAprecisedescriptionofthespecificcriteriausedforthemeasures thewhat themethodologytocollectthedata thehow theamountofdatatocollect howmuch andwhohasresponsibilitytocollectthedata thewho Provideseverybodywiththesamemeaning Ensuresthatconsistencyandreliabilityarebuiltinupfront Describesthescopeofthemeasure whatisincludedandwhatisnotincluded anoperationaldefinitionputscommunicablemeaningintoaconcept W EdwardsDemingExample OperationalDefinitionPoor Cycletimeforapplications Good CollectdatafromallapplicationsreceivedbyfaxfromJanuary3 1999toJanuary17 1999 Theresponsetimewillbedeterminedbythedateandtimeofthefaxreceivedasshownonthefaxedapplicationtothetimetheapprovalorrejectionletterisfaxedtotheapplicantasshownonthefaxlog SixSigmaandOperationalDefinitions Operationaldefinitionsenableateamtofullyagreeonhowaparticularcharacteristicofaprocessistobemeasured Itistheprocesscharacteristicthatiscriticaltothesatisfactionofthecustomer Therefore whendevelopinganoperationaldefinition itisimportantfortheteamtofullyunderstandandagreethatthedefinitionreflectsexactlywhatinformationtheteamisattemptingtogatherontheprocess Clarityisevenmoreimportantwhendevelopingandselectingthemeasuresthatwillbeusedtodeterminethesigmaperformanceofaprocess Operationaldefinitionsmaydetermineifateamistocountallthedefectsonaninvoice requiredtocalculatedefectspermillionopportunities orthetotalnumberofdefectiveinvoices anyinvoicewithanydefect orthetypeofdefectsencounteredonaninvoice toeliminatethemostcommondefectsfirst Eachofthesecasesmayrequireaverydifferentapproachforgatheringthedata Operationaldefinitionshelpensurethattheteamdoesitrightthefirsttimewhenitcomestodatacollection Exercise OperationalDefinition ObjectiveTopracticedevelopinganoperationaldefinition 20minutes Instructions1 Selectoneofthefirstthreeexamplesbelowandonefromyourprocess 2 Writeanoperationaldefinitionforeachthatwillbecleartoallwhoneedtounderstandit 3 Preparetosharethedefinitionswiththeclass A On TimeDepartures Aconsumerorganizationwantstorateairlinesonhowsuccessfultheyareatmeetingthedeparturescheduleasputforwardbyairports Butbeforetheorganizationcanstartitneedsanoperationaldefinitionofwhentheairplanedeparts B CustomerComplaintsReduction Afastfoodrestaurantwantstoreducethenumberofcomplaintsitreceives Itneedsanoperationaldefinitionofcomplaintsbeforeitcanstarttomeasureit C KnowledgeableStaff Acustomerserviceorganizationwantstobeabletoassesshowknowledgeableitsstaffisatmeetingthecustomerneeds Itneedsanoperationaldefinitiontohelpestablishabaseline D YourProcess MeasurementPlan QuestionstoAnswerWhatprecisedatawillbecollected Performancemeasurement Causesofprocessdeficiencies Doweanalyzeallrelevantdataorasample Whatistherightsamplesize Whatistherightfrequency Whatwillbethesampleselectionmethod Whattoolsarenecessary Whatformatswillbeused Whatlogswillbekept Doweneedacomputer Step2 MeasurementPlanDeterminingcurrentprocessperformanceusuallyrequiresthecollectionofdata Whendevelopingameasurementplanensurethat ThedatacollectedismeaningfulThedatacollectedisvalidAllrelevantdataiscollectedconcurrently Whatlogisticalissuesarerelevant Whowillcollectdata Whereisthedatalocated Whenwillitbecollected Whatadditionalassistanceisrequired Whatyouwanttodowiththedata Useddaily weekly etc IdentifytrendsintheprocessdataIdentifydeficienciesintheprocessDemonstratecurrentprocessperformanceIdentifyvariationisaprocessIdentifyacauseandeffectrelationship DevelopaMeasurementPlan TypesofData Beforedatacollectionsstarts classifythedataintodifferenttypes continuousordiscrete Thisisimportantbecauseitwill ProvideachoiceofdatadisplayandanalysistoolsDictatesamplesizecalculationProvideperformanceorcauseinformationDeterminetheappropriatecontrolcharttouseDeterminetheappropriatemethodforcalculationof6s Continuous Measuredonacontinuum Objective Time Money Weight Length Subjective Satisfaction Agreement Extent Typeoferror Discrete Countorcategories Objective Countdefects approved oferrors Typeofdocument Subjective Yes No Categories Serviceperformancerating good poor Satisfaction Agreement TwoBasicsTypesofData Continuousorvariabledata measuredonacontinuumorscale Usuallycontinuousmeasurescanbedividedintopartsandstillmakesense Forexample Timecanbedividedintodays hours minutes orseconds cycletime Moneycanlogicallybedividedorspecifiedinincrements sales costs losses Satisfactionifmeasuredwithacontinuousscale dissatisfied dissatisfied neithersatisfiednordissatisfied satisfied verysatisfied canlogicallybecalculatedandexpressedinanaveragelevelofsatisfactiononascale Discrete categoricalorattributedata measuredbycounting Forexample Defects yes no approved disapproved pass fail metcustomerrequirement didnotmeetcustomerrequirement Categories daysoftheweed locations typeofcustomer typeofproduct risk low medium high Satisfaction poor fair good excellentordissatisfied satisfied CauseData PerformanceDataDescriptiveFocusonResultsHelpsestablishabaselineMeasuresperformanceofaprocessShouldbecollectedfirst CauseDataFocusesonwhyprocessperformsthewayitdoesHelpsidentifypotentialrootcausesCollectthistypeofdatatoexplainperformanceproblems Causedata ontheotherhand focusesonwhytheprocessperformsasitdoes Causedatasupportsproblemsolvingbyhelpingtoisolaterootcausesofproblems Don tassume however thatyoushouldn tgathercausedataandperformancedataatthesametime Remember resourcefulnessisoneofthekeystoeffectivedatacollection Sometimes you llknowenoughaboutpotentialcausestomeasureperformanceandisolatepotentialcausesatthesametime Mostofthetime however youwon tknowenoughaboutpotentialcausesuntilyou vedeterminedyourprocessescurrentperformancelevel Bepreparedtodocumentcurrentperformancefirst thenbrainstormpotentialcausesandcollectadditionaldatarelatedtothosecausesatalaterdate PerformanceandCauseData Step2 DevelopaMeasurementPlan EachSixSigmaimprovementteamshouldcompleteameasurementplanthatcontainsthefollowinginformation Example Cycletimeforloanapplicationprocessing Step2 DevelopDataMeasurementPlan Example Cycletimeforloanapplicationprocessing Considerationsforotherdatathatshouldbecollectedatthesametime Howwillyoudisplaythedata Whatdoyouwanttodowiththedataafteritiscollected Howdoyouwanttostratifythedata Whatdatamightyouneedtoidentifyandverifyrootcause Datacollectionisabalancebetweentimemoneyandaccuracy gettingthedatayouneed Step3 CollectData Followtheplan noteanydeviationsfromtheplanConsistency avoidbiasObservedatacollectionDiscussiononDataCollectionExperience ObtainingtheMeasurements Thedatacollectedwillonlybeasgoodasthecollectionsystemitself Inordertoassuretimelyandaccuratedata thecollectionmethodshouldbesimpletouseandunderstand Thereareseveralmethods Themostcommonare Checksheet asimplelogof tickmarks representingthevolumeandtypeofworkTimestamps arecordingofthetimethateachactivitybeginsandends Example ChecksheetApplicationsReturnedforMissingDataAlldatacanbecollectedmanually writinginthelog recordingthetime etc orautomatically Automaticdatacollectionassuresaccurateandtimelydata andremovestheburdenofcollectionfromtheoperatoroftheprocess But itcanbeveryexpensivetosetup Itusuallyinvolvescomputerprogrammingand orhardware Formostinitialefforts apaperlogisthemostcosteffectiveformofdatacollection IdentifyToolstoHelpYouCollectData Hint IdentifytypesofdatayouneedtocollectbeforeyoudesigntheformChecksheetsSimpledatacollectionformwhichhelpsdeterminehowoftensomethingoccurs ConcentrationDiagramsPictorialchecksheetwhichhelpsyoumarkwheresomethingoccursorthetypeofproblem NameAddress Telephone TypeofLoanNeeded IncomeLevel OtherLoanInformation BankingInformation ProcessDistributionChecksheet Totals One FactorAttributeChecksheet Sampling Usingasampleofdatayoudrawconclusionsabouttheentirepopulationofdata Thisisknownas statisticalinference Samplingsavescostsandtime Samplingprovidesagoodalternativetocollectingallthedata Identifyingaspecificconfidencelevelallowsustomakereasonablebusinessdecisions SamplingSituations Differentsituationswhichdictatesamplingtechniques ToanalyzeandcontrolaprocessTodescribealargepopulation I e typesofcustomersandbuyingbehavior SamplingTypes SamplingConsiderations WhereLocationintheprocesswhereprocessstepsdirectlyaffectoutputs strongrelationship Maximizeopportunityforproblemidentification causedata FrequencyDependentonvolumeoftransactionsand oractivityUnstableprocess morefrequently usesystematicorsubgroupsampling Stableprocess lessfrequently usesamplesizeformula DependentonhowprecisethemeasurementmustbetomakeameaningfulbusinessdecisionconsiderationsIsthesamplerepresentativeoftheprocessorpopulation Istheprocessstable Isthesamplerandom Isthereanequalprobabilityofselectinganydatapoint Theanswertoeachofthesequestionsmustbeyesbeforewecandrawstatisticallyvalidconclusions DeterminingMinimumSampleSize Minimumsamplingsizefromapopulationorastableprocesscanbeestimatedfromthefollowingformulas ContinuousDataSampleSizeForcontinuousdata N minimumsamplesizerequiredS estimateofstandarddeviationofthepopulationorprocessdataD levelofprecisiondesiredfromthesampleinthesameunitsasthe s measurement1 96 constantrepresentinga95 confidenceinterval where DiscreteDataSampleSizeFordiscreteorproportiondata wheren minimumsamplesizep estimateoftheproportionofthepopulationofprocesswhichisdefectiveD levelofprecisiondesiredfromthesampleinunitsofproportion1 96 constantrepresenting95 confidenceintervalthehighestvalueofp 1 p is 25orp 5BenefitsofContinuousDataUsuallyrequiresasmallersampleMoreinformationforstratificationandrootcauseanalysis DeterminingMinimumSampleSize FormulaforSmallPopulations Makingadjustmentsintheminimumsamplesizerequiredforsmallpopulations Samplesizeformulaassumes a95 confidenceintervalAsmallsamplesize n comparedtotheentirepopulationsize N Ifn Nisgreaterthan0 05 thesamplesizeshouldbeadjustedto TheproportionformulashouldonlybeusedwhennP 5 FormulaforSmallPopulations Example ProcessingloanapplicationsGiven Thesamplesizeformulashowsthatyouneedaminimumsamplesizeof289 Youhaveonlyprocessed200units Solution Thecorrectminimumsamplesizewouldbe 118 2or119 minimumsamplesizerequired MinimumSampleSize Example SampleSizeCalculation ContinuousAsigmateamsamplesaloanprocesstodeterminetheaverageprocessingtime andwishestoestimatetheaveragetimewithinoneday Basedonprevioussampling theteamhasestimatedthestandarddeviationofthecurrentloanprocessingtimeas4days