Lean Six

Sigma Group

Lean Six Sigma Case Study

Executive Overview

International Standards for Lean Six Sigma (ISLSS)

 “Descriptive Project Title”
Process Capability Analysis for Average Spee

Customer Profile: 28,000 Retail Business LSL

USL Process Capability
Process Data

Business Problem & Impact: USL 20.0000 – Before

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

increased 30% with a recent acquisition, end user downtimeStDev

was
Sample N
(ST)
117
38.9880

costing the company US$500K annually. The target averageStDev

speed
(LT)
to
50.6272

answer was under 30 seconds. Potential (ST) Capability

Cp 0.09

Measure & Analyze: CPU

CPL
-0.44
0.61
Cpk -0.44
Data Collection: Speed to answer on all calls was measured.
Cpm The *
-100 0 100 200 300 400
existing process sigma was 2.4. Overall (LT) Capability Observed Perf ormance Expected ST Perf ormance Expected LT Performan

Root Causes: Nature of problem and time of call were identified as root
Pp 0.07 PPM < LSL 0.00 PPM < LSL 33440.39 PPM < LSL 7909
PPU -0.34
LPPM
S L> USL 948717.95 PPM > USL
US L 906498.25 PPM > USL 84521
P roc es s Data Process Capability
causes. PPL
Ppk US L
0.47
-0.34 20.0000
PPM Total 948717.95 PPM Total 939938.64

– After
PPM Total 92431

T arget *
ST
LS L 0.0000

Improve & Control:

LT
Mean 14.7929
S am ple N 169

Cross-training on call types was performed and staffing was arranged S tDev (S T )
S tDev (LT )
3.38716
4.61648

around peak call times. Metrics are reviewed weekly and posted to an
IT dashboard.
P otenti al (S T ) Capability
Cp 0.98
CP U 0.51

Results/Benefits CP L
Cpk
1.46
0.51
Cpm *
After the 3 month project, the customer saved US$150K, or 30%, as a 0 10 20 30 40
result of reduced end user downtime. Pp
Overall (LT ) Capabil ity
0.72
Obs erved P erform anc e
P P M < LS L 0.00
E xpec ted S T Perform anc e
P P M < LS L 6.29
E xpec ted LT P erform
P P M < LS L
PPU 0.38 P P M > US L 130177.51 P P M > US L 62109.19 P P M > US L 129
PPL 1.07 P P M T otal 130177.51 P P M T otal 62115.48 P P M T otal 130

A Savings of US $150k in 20XX

P pk 0.38

Create Candor in the Workplace with Jack Welch

Video by Stanford Graduate School of Business
International Standards for Lean Six Sigma (ISLSS) 2
Project “Storyboard”
Example

Enter Key Slide Take Away (Key Point) Here

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International Standards for Lean Six Sigma (ISLSS)
 Lean Six
Sigma Group

Lean Six Sigma Case Study

Backup Slides

International Standards for Lean Six Sigma (ISLSS)

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

Team Tollgate Review Schedule

 PES Name Project Executive Sponsor (if different from PS)
Tollgate Scheduled Revised Complete
 PS Name Project Sponsor/Process Owner
 DC Name Deployment Champion Define: XX/XX/XX - XX/XX/XX
 GB/BB Name Green Belt/Black Belt Measure: XX/XX/XX XX/XX/XX XX/XX/XX
 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
 Team Member 2 TM XX
Control: XX/XX/XX XX/XX/XX XX/XX/XX
GB
 Team Member 3 SME XX PS  Review high-level schedule milestones here:
Extended Team  Phase Completions
 Team Member 1 BFM XX Not Trained  Tollgate Reviews
 Team Member 2 IT XX Not Trained

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How Hoshin Planning helps Organizations Video by iNexusTV1
International Standards for Lean Six Sigma (ISLSS) 5
 Measure Overview
Process Capability Graphical Analysis
 CTQ: ? I-MR Chart of Delivery Time
40
 Unit (d) or Mean (c): ? U C L=37.70

Individual Value
35

 Defect (d) or St. Dev. (c): ? 30 _

X=29.13

 PCE%: ? 25

20 LC L=20.56

 DPMO (d): ? 1 28 55 82 109 136

O bser v a tion
163 190 217 244

 Sigma (Short Term): ? 10.0

U C L=10.53

 Sigma (Long Term):?

Moving Range
7.5

5.0

 MSA Results: show the percentage result of the GR&R,

__
M R=3.22
2.5

AR&R or other MSA carried out in the project 0.0

1 28 55 82 109 136 163 190 217 244
LC L=0

O bser v a tion

Root Cause / Quick Win Tools Used

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

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Gemba Training Video by Gemba Academy
International Standards for Lean Six Sigma (ISLSS) 6
 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

T ask T im e (seco n d s)
Takt Tim e = 55
Significant factor - 1 hour driving time from DC
80
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
 Effect
 One-Way ANOVA  Complexity
 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:  T-Test
 Test for Equal Variance
 Effect  Scatter Plots  Other

Enter Key Slide Take Away (Key Point) Here

Analyze Tools using SigmaXL Virtual Menus Training Video by SigmaXL Inc.
International Standards for Lean Six Sigma (ISLSS) 7
 Improve Summary
Practical Solution (process change Operating
Vital X (root cause) Proof of Causation
to address X) T olerances for X
Client IT need to reverify Average delay between Eliminate process - Place accountability n/a
all exit data received from reception of information on Client HR for information placed into
Client HR from Client HR until it new database.
reaches NT Admin or
general admin
E-mail vendor's contract The SLA has a range of 3- E-mail vendor instituted new web 1 - 2 days
with Client 5 business days for the interface for all add/delete requests,
completion of a delete vastly improving request processing
request time.
E-mail vendor's contract The SLA has a range of 3- E-mail vendor instituted new web 1 - 2 days
with Client 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

The 3 Key Secrets of Strategy Execution (Paul Docherty) Video by i-nexus
International Standards for Lean Six Sigma (ISLSS) 8
 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* ? ?
 Any Replication in other locations?
PCE% ? ?
Std. Deviation* ? ? Communication:
 Communicate project results with customer
Sigma (ST) ? ?
 Communicate results with the business
Sigma (LT) ? ?

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Standard Work Training Video by Gemba Academy
International Standards for Lean Six Sigma (ISLSS) 9
 Business Impact
 State financial impact of future project leverage opportunities
 Separate “hard or Type 1” from “soft Type 2 or 3” dollars
Annual Estimate Replicated Estimate
• Type 1: ? Type 1: ?
Revenue • Type
•
2: ? • Type 2: ?
Enhancement • Type 3: ? • Type 3: ?
• Type 1: ? Type 1: ?
Expenses •
• Type 2: ? • Type 2: ?
Reduction • Type 3: ? • Type 3: ?
• Type 1: ? Type 1: ?
Loss Reduction •
• Type 2: ? • Type 2: ?
• Type 3: ? • Type 3: ?
• Type 1: ? Type 1: ?
Cost Avoidance •
• Type 2: ? • Type 2: ?
• Type 3: ? • Type 3: ?
• Type 1: ? Type 1: ?
Total Savings •
• Type 2: ? • Type 2: ?
• Type 3: ? • Type 3: ?

Enter Key Slide Take Away (Key Point) Here

Floyd Boilanger CFO Lean Six Sigma Interview National Energy Technology Lab

International Standards for Lean Six Sigma (ISLSS) 10

 Business Impact Details
 Type 1: Describe the chain of causality that shows how you determined the Direct Cash Flow. Tell the story
with cause & effect relationships, on how the proposed change should create the desired financial result ($) 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 Labor Efficiency savings. Tell the
story with cause & effect relationships on how the change should create the desired financial result ($).
 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 (i.e. Cost/Risk Avoidance)
 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

How to Calculate ROI Training Video by Mike Turco
International Standards for Lean Six Sigma (ISLSS) 11
 Lessons Learned
1. ?
2. ?
3. ?
4. ?
5. ?
6. ?
7. ?
8. ?
9. ?
10. ?

Enter Key Slide Take Away (Key Point) Here

Learn the 7 Quality Control Tools Training Video by Gemba Academy
International Standards for Lean Six Sigma (ISLSS) 12
 Project Contributors
Steering Team Support Team
 <Name>: <Contribution>  <Name>: <Contribution>
 <Name>: <Contribution>  <Name>: <Contribution>
 <Name>: <Contribution>  <Name>: <Contribution>
 <Name>: <Contribution>  <Name>: <Contribution>
 <Name>: <Contribution>  <Name>: <Contribution>

Project Ownership Team Deployment Team

 <Name>: <Contribution>  <Name>: <Contribution>
 <Name>: <Contribution>  <Name>: <Contribution>
 <Name>: <Contribution>  <Name>: <Contribution>
 <Name>: <Contribution>  <Name>: <Contribution>
 <Name>: <Contribution>  <Name>: <Contribution>

Enter Key Slide Take Away (Key Point) Here

What does a good Leader or Coach do? (Jeff Liker) Video by George Trachilis

International Standards for Lean Six Sigma (ISLSS) 13

 Lean Six
Sigma Group

Lean Six Sigma

Additional Resources

How to Upgrade to SigmaXL Video by SigmaXL Inc.

International Standards for Lean Six Sigma (ISLSS)
 Lean Six Sigma Tollgate
Template Notes
The Lean Six Sigma Tollgate Templates are:
 Free and intended as a guide in documenting a Lean Six Sigma
Project. I grant permission for you to modify these templates to meet
the specific needs of your process improvement project.
 Instructional - a video has been linked to each Template, I selected a
mix of videos from Thought Leaders in the Lean Six Sigma Group.
I included reference links to all video’s should you want to learn
more information. Also included guidelines in the Note’s section of
each slide.
 Efficient and Effective – Placeholders for Graphic or Video Examples
for various tools and methods across each DMAIC Phase. My name is
How to Use These Templates: Steven Bonacorsi,
 Collaboratively – use as a guide, reuse templates independently or Author of the Lean Six
across phases as needed, and change the order as needed to best Sigma Tollgate
Templates, President of
capture the execution of Lean Six Sigma in each phase, and
the
summarize in the final Case Study. International Standard f
 Use as a Communication tool, and document your findings and or Lean Six Sigma
results. (ISLSS), and Owner of
the
Replace the content of this slide with images or video’s LinkedIn a Group
Lean Six Sigm
related to your process improvement project .
International Standards for Lean Six Sigma (ISLSS) 15
 Lean Six Sigma Resources
 Lean Six Sigma Group: https://www.linkedin.com/groups/Lean-Six-Sigma-37987
 Lean Six Sigma Subgroups: https://www.linkedin.com/groups?subgroups=&gid=37987

 International Standard for Lean Six Sigma (ISLSS): http://www.islss.com

 i-nexus: http://www.i-nexus.com
 Strategy Execution Community LinkedIn Group
https://www.linkedin.com/groups/Strategy-Execution-Community-3725091

 SigmaXL: http://www.sigmaxl.com
 SigmaXL LinkedIn Group: https://www.linkedin.com/groups/SigmaXL-1812101?gid=1812101

 Gemba Academy http://www.gembaacademy.com Lean CEO Group:

 Gemba Academy LinkedIn Group: https://www.linkedin.com/groups/Gemba-Academy-1844998?gid=1844998

 PEX Network http://www.processexcellencenetwork.com

 PEX Network & IQPC - Lean Six Sigma & Process Excellence for Continuous Improvement
 Lean Leadership Institute: http://www.LeanLeadership.guru/books.html The Toyota Way Group

Best Wishes in Continuously Improving Your Business Processes

– Steven Bonacorsi, Certified Lean Six Sigma Master Black Belt
International Standards for Lean Six Sigma (ISLSS) 16
 Lean Six Sigma Groups
(Click Logo’s to Join Group)

Lean Six Sigma Group

Each Week, the Lean Six Sigma Group Grows +1,500 New Members; +2,000 Lean
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+280,000 Members – Come Join the Conversation
International Standards for Lean Six Sigma (ISLSS) 17
 Lean Six Sigma Resource Blogs
(Click Logo’s to Follow Blogs)

See Notes Section for Links to Lean Six Sigma Group Contributors

International Standards for Lean Six Sigma (ISLSS) 18

Lean Six Sigma Executive Overview
Video References – Set 22

Create Candor in the Workplace with J

ack Welch Analyze Tools using SigmaX
L Virtual Menus
Video by
Video by SigmaXL Inc.
Stanford Graduate School of Business

How Gemba Training Video by

a Passionate Lean Thinking Enterprise i Gemba Academy
s
Developed by Gemba Academy

Floyd Boilanger CFO Lean Six Sigma Standard Work Video by

Interview Gemba Academy
National Energy Technology Lab

The 3 Key Secrets of Strategy How Hoshin Planning helps

Execution (Paul Docherty) Video by i
Organizations Video by
-nexus
iNexusTV1

Join the Lean Six Sigma Jobs Group: http://

www.linkedin.com/groups?gid=2161051
International Standards for Lean Six Sigma (ISLSS) 19
Lean Six Sigma Executive Overview
Video References – Set 23

What does a good Leader or Coach How to Calculate ROI

do? (Jeff Liker) Video by Training Video by
George Trachilis Mike Turco

Learn the 7 Quality Control Tools How to Upgrade to

Video by Gemba Academy SigmaXL Video by
SigmaXL Inc.

Join the Careers in Operational Excellence Group: http://

www.linkedin.com/groups?gid=3723227
International Standards for Lean Six Sigma (ISLSS) 20