PWC Lss GB 2017 03 Module 1

25.3.
2017
www.pwc.com
Lean Six Sigma

Green Belt Training
Module 1
March 2017
Today‘s focus:
1 2 3 4 5
Identify
Define the Define the critical
D Define improvement
opportunities
Develop the
project plan
Develop the
project team
processes
(high level)
customers
requirements
(CCR’s).
1 Identify the 2 3 4
Define the
Key Develop Validate the
M Measure Performance
Indicators
a data
collection plan
measurement
system
baseline
process
performance
(KPIs)
1 2 3
Identify Identify and
A Analyzuj specific
problems
validate the
root causes
Identify
y = f (x)
1 2 3 4 5
Test and Develop a
Identify Select right Deploy
I Improve potential
solutions
improvement
solution
validate
optimal
solutions
change
management
approach
and execute
solutions
1 2 3 4 5
Detect the Evaluate Document the Close project,
C Control
Determine the
control plan
abnormal
variations
results of the
changes
process
changes
communicate
the know-how
Lean Six Sigma • Green Belt

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25.3.2017
Lean Six Sigma - Review
Lean Six Sigma • Black

GreenBelt
BeltTraining Week 2 August 2013
PwC 3
Lean and Six Sigma are two methodologies with one

goal
Lean Six Sigma
Remove waste Remove

variability
Find out what customer values and remove everything else. Keep
quality high, costs low and do it fast.

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25.3.2017
7+1 types of waste

Manufacturing Services
• Unnecessary movement • Unnecessary approvals
Transport (M)
• Extra handling • Verification loops
Touches (S) • “Moving inventory” • Inefficiencies between corporate and field
• High material stocks • Poor resource leveling to meet demand

Inventory • Excessive space requirements • Minimal understanding of bottlenecks
• Clutter • Redundant activities
• Incorrect layouts of factory, office, etc. • “Chasing” approvals

Motion • Lack of proximity of machines • “Searching” for information
• Off-line resources
• Watching machines work • Waiting for approvals

Waiting • Long set-up and lead times • Meetings and conference calls
• Poor machine maintenance • Significant ad-hoc reporting

Overprocessing • Unnecessary processing steps • Pools of headcount performing reconciliation activities
• High overall lead time
• Large batches of inventory • Poorly defined or communicated requirements

Overproduction • Making for the sake of it • Excess resources lacking clear work activities
• Ignoring customer demand
• Long delays for troubleshooting • Costly rework

Defects • Costly rework • Inaccurate reporting
• Dissatisfied customers • Dissatisfied customers
• Untapped Human Potential • Untapped Human Potential

(People) • Lack of motivation to make improvements • Lack of motivation to make improvements
PwC 5
What is a Lean Six sigma

Normal distribution (Gaussian chart / Bell curve) is a most common statistical
distribution
Process output has often a normal distribution
Customer sets lower limit and upper limit, what he accepts
Standard deviation is a measure of variation
The lover variation, the more standard deviations fits into customer limit
The best companies try to fit 6 standard deviations into the limit (therefore Six Sigma)
That is 3,4 values outside the limits in 1 million tries!

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25.3.2017
How would 99% right look like
20 000 lost packages in the US per hour 2 landing accidents daily on every
major airport
Unsafe drinking water for almost 5000 wrong surgeries in the US per
15 minutes each day week

PwC 7
Some things need to be 99,99966% (6 sigma) right
7 lost packages in the US per hour 1 landing accident every 5 years on

every major airport
Unsafe drinking water once in 7 1,7 wrong surgeries in the US per

months week

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25.3.2017
Typical Lean Six Sigma project structure

8 weeks 8 weeks 8 weeks
Workstream 1
Project Project Project
Project Project Project ...

Workstream 2
D M A I C
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Lean Six Sigma Projects Examples
Production Services
Decrease scrap rate Decrease mortgage approval time

Increase customer lead time Increase accounting team productivity
Increase “On time in full” orders Streamlining internal approval process
Decrease breakdown rate Decrease % of customers contacting
Total productive maintenance customer service
Optimization of internal logistics, Decrease waiting time in call centers
decrease of transport and movement
Decrease machine set up times
Decrease material consumption
Reduce inventory
Lean Six Sigma is equally usefull in both production

and services. Most of the methods are the same.

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25.3.2017
Section 1 – “Define” – Summary
DMAIC is a typical Lean Six Sigma project structure
What is the improvement opportunity? What

D Define
will be the financial benefit? What will we do?
How to measure success? What is the current

M Measure
state? How do we measure improvement?
What is the root cause of the problem? Which

A Analyzuj 20% of causes cause 80% of the effect?
How can we do things in a new way? How to

I Improve
improve customer value?
Did we improve? Can we sustain the

C Control
improvement after the end of the project?
PwC 11
Define

GreenBelt
PwC 12
6
25.3.2017
DMAIC – Project road map

1 2 3 4 5
Identify
Define the Define the critical
D Define improvement
opportunities
Develop the
project plan
Develop the
project team
processes
(high level)
customers
requirements
(CCR’s).
1 Identify the 2 3 4
Define the
Key Develop Validate the
M Measure Performance
Indicators
a data
collection plan
measurement
system
baseline
process
performance
(KPIs)
1 2 3
Identify Identify and
A Analyzuj specific
problems
validate the
root causes
Identify
y = f (x)
1 2 3 4 5
Test and Develop a
Identify Select right Deploy
I Improve potential
solutions
improvement
solution
validate
optimal
solutions
change
management
approach
and execute
solutions
1 2 3 4 5
Detect the Evaluate Document the Close project,
C Control
Determine the
control plan
abnormal
variations
results of the
changes
process
changes
communicate
the know-how

PwC 13
1 2 3 4 5
Define the Define the Identify critical
Develop the Develop the
Define improvement
project plan project team
processes (high customers
opportunities level) requirements
Den 2 –2“Define”
Section /VOC
– “Define” /VOB
– Summary
Kano model
Indiference

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1 2 3 4 5
Define improvement
Team, management and roles (Belbin)

4. Observing and finishing 1. Ideas and opportunities
Completer Plant
finisher PROACTIVE
PROACTIVE ACTION THINKING
Monitor Resource
evaluator investigator
REACTIVE THINKING REACTIVE
PEOPLE
Coordinator
REACTIVE PEOPLE
3. Implementation and co-operation 2. Leadership and people development
Implementer Shaper
PROACTIVE PROACTIVE
ACTION ACTION
Team worker Specialist

THINKING
REACTIVE
PEOPLE PROACT./ REACT.

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1 2 3 4 5
Define improvement
Key factors of team success

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1 2 3 4 5
Define improvement
Project and team Team culture Self-confidence growth

Highly effective team
Roles and norms
Membership Trust building
Real team
Performing
Performance
Work group Potential team

Norming
Role Allocation
Forming
Fake-team
Team development Storming

Time
Project development
Initiating Planning Executing Closing
From: Bruce W. Tuckman

Lean Six Sigma • Green Belt Monitoring
PwC 17
1 2 3 4 5
Define improvement
Planning a task - „Product X“
1. Define a task (What is expected?)
2. Divide up a task into parts (Which steps will lead to accomplishment?)
3. Analyse its parts (What is critical and what may wait?)
4. Generate more methods of its implementation (How to do it?)
5. Select the best method (It will be expensive or too slow?)
6. Decide how to perform a task (What and when will it do?)
Lean Six Sigma • Yellow Belt školení

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Appendix

YellowBelt
BeltTraining
školení Week 2 August 2013
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1 2 3 4 5
Define improvement
Project Charter
Objective of a project charter
To validate and/or identify an improvement project that is critical and aligned to the
business value stream.
Elements of a project charter Project Charter
Business Case Problem Statement
A. Business Case: Purpose  Why should we do  What ‘pain’ are we
this? experiencing?
 What is wrong?
B. Problem Statement: Business impact
C. Goal Statement: Success criteria Goal Statement Project Scope

 What are our  What authority do we
D. Project Scope: Boundaries improvement have?
objectives and  What processes are
targets? we addressing?
E. Project Plan: Activities  What is not within
scope?
Project Plan Team Selection
F. Team Selection: Who and what  How are we going to  Who are the team
get this done? members?
 When are we going to  What responsibilities
complete the work? will they have?

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25.3.2017
1 2 3 4 5
Define improvement
opportunities level) Business
requirements Case
Project Charter – How? (1/6)

A. Business Case
The business case describes the benefit for undertaking a project, and should address the
following questions:
• What is the benefit to the customer?

• What benefits will be derived from this project?
• Has the value of the benefits been quantified?
• Does this project align with other business initiatives?
• What impacts will this project have on other business units and employees?
• What is the focus for the project team?
• Where should the team’s work begin and end?
• What are the projected investments?

PwC 21
1 2 3 4 5
Define improvement

B. Problem Statement
The problem statement describes current pain. The problem statement

should address the following questions:
• What is the problem?

• When and where do the problems occur?
• How extensive is the problem?
• What is the impact “pain” on our customers?
• What is the impact “pain” on our business?
• What is the impact “pain” on our employees?
• Does it make strategic sense to address this problem?

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1 2 3 4 5
Define improvement

C. Goal Statement
The goal statement defines the objective of the project, and is specific,
measurable, attainable, relevant and time-bound. The goal statement
addresses the dream state:
• What are the customers needs that must be met?

• What are the tangible results deliverables (e.g. reduce cost, cycle time, etc.)?
• What specific parameters will be measured?
• What is the improvement team seeking to accomplish?
• How will the improvement team’s success be measured?
• What is the timetable for delivery of results?

PwC 23
1 2 3 4 5
Define improvement
opportunities level) Project boundaries
requirements

D. Project Scope
The project scope defines the boundaries of the business opportunity,

and should address the following questions:
• What are the boundaries, the starting and ending steps of a process, of the initiative?
• What parts of the business are included?
• What parts of the business are not included?
• What, if anything, is outside the team’s boundaries?

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1 2 3 4 5
Define improvement

E. Project Plan
Purpose
Plan the tollgates and activities of the Six Sigma project
Project Plan
• What (DMAIC, output defined by tollgates)
• Who
• When
Apply the KISS principle

• Actions, Action Owner, Time plan, status control

PwC 25
1 2 3 4 5
Define improvement

F. Team Selection
Select your team members and assign responsibilities. This should

address the following questions:
• Who is the project sponsor? What are his/her responsibilities to the team?
• Who is accountable to whom and for what?
• Who is on the team?
• Who is the team leader? What are the team leader’s responsibilities?
• What type of team members are needed? At what stage will they be needed?
• How will the project teams coordinate their efforts?
• How often and how does the team report?

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1 2 3 4 5
Define improvement
Project Charter – Evaluation

SMART
Once you complete a draft of your project charter, S pecific
you should evaluate the charter to ensure its • Does it address a real business
problem?
effectiveness.
M easurable
• Are we able to measure the problem,
A methodology for evaluation is called “SMART.” establish a baseline, and set targets for
improvement?
This acronym is a checklist to ensure that the A ttainable

charter is effective and thorough. • Is the goal achievable? Is the project
completion date realistic?
R elevant
• Does it relate to a business objective?
T ime Bound
• Have we set a date for completion?

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1 2 3 4 5
Define improvement
Change Management in DMAIC

Critical elements of our change approach
Solid strategies, processes and technology alone do not deliver results. It takes people to
accept, adopt and drive the change to realize tangible impact. From this perspective, the
most important change related objective of the LSS project is that management and
employees involved are willing and able to change. The competencies and behaviour of
management and employees have to be aligned with the processes, systems and structures
of the new situation. The following figure visualizes the critical elements of this change
approach:
Management
support
Communication Education
Have to
Willing &
Able
(organization
development
)
Change (Change)
readiness competence
Engagement
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1 2 3 4 5
Define improvement
Case for Change

Storyline business case
• Defines power to change

• Describes need for change
• Defines relation to business issues
All together are the legitimisation for change!!

Burning
platform?
Key to success!!!
Ambition
Need?
Pain?
PwC 29
1 2 3 4 5
Define improvement
Template: Case for Change – project x
1. What is the urgency or ambition behind the change?

…………………………………….
2. What are the benefits of the change (as specific as possible)?
…………………………………….
3. What happens if we do not change?
…………………………………….

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1 2 3 4 5
Define improvement
Key Stakeholder Mapping
Stakeholders are….
…individuals or groups of individuals who will either be affected by your activities or have
the ability to impact your activities
Mapping is done using five dimensions:

- Time
- Current level of support
- Current level of impact
- Power and influence
- Desired level of support

PwC 31
1 2 3 4 5
Define improvement
Stakeholder Mapping (1/3)
Time - Oil Slick.
Oil slick
The time at which stakeholders are affected by the project can be depicted by an oil Slick.
The inner ring will be involved first, outside ring towards the end. Timing of involving stakeholders
depends on power and influence, level of impact and desired level of support.
At this
Lean stage• only
Six Sigma Manager and Employees in ring 1 and 2 are involved.
Green Belt
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1 2 3 4 5
Define improvement

Dimension 1. current level of support,
Dimension 2. current level of impact and
Dimension 3. power and influence are depicted as follows:
Graph
• X as: current level of support: which level of support has the stakeholder in the project (in the measure
phase, we indicate the desired level of support)
• Y as: level of impact: how strong will the stakeholder be affected by the project?
• Power & influence: what is the power and level of influence of the stakeholders?
PwC 33
1 2 3 4 5
Define improvement

Current vs. desired level of support
The complete stakeholder map (including the current and the

desired level of support) will be prepared in the Improve phase as
we know at that time which changes will be realized and which
impact those changes will have on the organization.

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25.3.2017
Conclusion

GreenBelt
PwC 35
Contact
Jiří Benedikt Jan Stejskal
Trainer, Consultant Trainer, Consultant

I help people work smarter Building productive teams
Lean Six Sigma | Design thinking | Excel
jiri@jiribenedikt.com Stejskal.honza@volny.cz
777 253 754 602 725 420
www.jiribenedikt.com www.belbin.cz

PwC 36
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25.3.

Lean Six Sigma

Lean Six Sigma • Green Belt

Lean Six Sigma - Review

Lean Six Sigma • Black

Lean and Six Sigma are two methodologies with one

Remove waste Remove

Lean Six Sigma • Green Belt

7+1 types of waste

• High material stocks • Poor resource leveling to meet demand

• Incorrect layouts of factory, office, etc. • “Chasing” approvals

• Watching machines work • Waiting for approvals

• Poor machine maintenance • Significant ad-hoc reporting

• Large batches of inventory • Poorly defined or communicated requirements

• Long delays for troubleshooting • Costly rework

• Untapped Human Potential • Untapped Human Potential

What is a Lean Six sigma

Lean Six Sigma • Green Belt

How would 99% right look like

Lean Six Sigma • Green Belt

Some things need to be 99,99966% (6 sigma) right

7 lost packages in the US per hour 1 landing accident every 5 years on

Unsafe drinking water once in 7 1,7 wrong surgeries in the US per

Lean Six Sigma • Green Belt

Typical Lean Six Sigma project structure

Project Project Project ...

Project Project Project

Lean Six Sigma Projects Examples

Decrease scrap rate Decrease mortgage approval time

Lean Six Sigma is equally usefull in both production

Lean Six Sigma • Green Belt

Section 1 – “Define” – Summary

DMAIC is a typical Lean Six Sigma project structure

What is the improvement opportunity? What

How to measure success? What is the current

What is the root cause of the problem? Which

How can we do things in a new way? How to

Did we improve? Can we sustain the

Lean Six Sigma • Black

DMAIC – Project road map

Lean Six Sigma • Green Belt

Lean Six Sigma • Green Belt

Team, management and roles (Belbin)

3. Implementation and co-operation 2. Leadership and people development

Team worker Specialist

Lean Six Sigma • Green Belt

Key factors of team success

Lean Six Sigma • Green Belt

Project and team Team culture Self-confidence growth

Roles and norms

Membership Trust building

Work group Potential team

Team development Storming

Initiating Planning Executing Closing

From: Bruce W. Tuckman

Planning a task - „Product X“

1. Define a task (What is expected?)

2. Divide up a task into parts (Which steps will lead to accomplishment?)

3. Analyse its parts (What is critical and what may wait?)

4. Generate more methods of its implementation (How to do it?)

5. Select the best method (It will be expensive or too slow?)

6. Decide how to perform a task (What and when will it do?)