Lecture 3 - Customer value & understanding how the work gets done Flashcards
What does the acronym DMAIC stand for?
Define-Measure-Analyse-Improve-Control
What standardised and systematic methodology does every Six Sigma project follow?
DMAIC
What is accomplished in the ‘Define’ stage?
State the exact problem or goal
State all processes involved
What is accomplished in the ‘Measure’ stage?
Gather information
Give baseline performance
What is accomplished in the ‘Improve’ stage?
Development, incorporation and testing of solution in application
What is accomplished in the ‘Control’ stage?
Communication of successes/ Implementing measures to ensure that this problem will not occur again
What is a project charter?
Provides a clear description of the project and its objectives
What should a project charter include?
High level business case Problem statement
Goal statement
Project scope
CTQS and defect definitions Role definition and allocation
Milestones
What are the Muda/7 Wastes of manufacturing?
Overproduction or asynchrony Inventory Motion Defectiveness Transportation Overprocessing Waiting
What are the 8 Wastes?
Overproduction or asynchrony Inventory Motion Defectiveness Transportation Overprocessing Waiting Underutilised skillset
What does the manufacturing waste ‘Transportation’ mean in a service environment?
Unnecessary movement
What does the manufacturing waste ‘Inventory’ mean in a service environment?
Incorrect inventory
What does the manufacturing waste ‘Motion’ mean in a service environment?
Unnecessary movement
What does the manufacturing waste ‘Waiting’ mean in a service environment
Delay
What does the manufacturing waste ‘Overproduction’ mean in a service environment?
Duplication
What does the manufacturing waste ‘Overprocessing’ mean in a service environment?
Duplication
What does the manufacturing waste ‘Defects’ mean in a service environment?
Unclear communication
Errors in the service transaction
Lost opportunity to win or retain customers
What are the effects of the wastes ‘Transportation’ and ‘Motion’?
Adds time to process without increasing value
Increase probability of inventory damage
Damage to customer
What are the effects of the waste ‘Inventory’?
Additional storage space Additional transportation activities
Increase probability of damage
What are the effects of the waste ‘Waiting’?
Can cause customers to queue
Non-delivery of promises
What are the effects of the waste ‘Overprocessing’?
Ineffective or inefficient processes
What are the effects of the waste ‘Overproduction’?
Excess inventory
Reduces speed and flexibility of processes
What are the effects of unclear communication?
Errors in service provision Customer dissatisfaction
What are the effects of system transaction errors?
User dissatisfaction Hidden costs (e.g. reworking, liability claims)
What are the effects of the waste ‘Underutilised skillset’
Limited authority and responsibility
Person put on a wrong job Lack of motivation, rewards and recognition
What are examples of unnecessary movement in service systems?
Excessive email attachments
Unnecessary copying people into emails
Walking to copier or printer Central filing
Unnecessary meetings
What are examples of incorrect inventory in service systems?
Purchasing before needed
Reports waiting on desk
Messages waiting in an inbox
Sales orders in a database
What are examples of delay in service systems?
System downtime Queuing Waiting for approvals Clarification of information Corrections from upstream processes
What are examples of duplication in service systems?
Processing order before needed Processing on routine schedule Unintegrated systems Capturing data and not using it Excessive planning
What are examples of defects in service systems?
Poor planning Data entry errors Employee turnover Miscommunication Client dissatisfaction Employee demotivation
What are Moments of Truth
‘Anytime a customer comes into contact with any aspect of a business, however remote, is an opportunity to form an impression’
What is a process?
‘Sequence of interdependent and linked procedures which, at every stage, consume one or more resources to convert inputs into outputs. These outputs then serve as inputs for the next stage until a known goal or end result is reached’
What is a process map?
A continuous improvement tool that enables the visual representation of a process
Give three examples of forms of process maps.
Process flowchart Deployment flowchart Spaghetti diagram
What is the benefit of process mapping?
Improves understanding with the purpose of eliminating non-value-adding activities
What could occur if a process map was not used?
Changes could be made without a good understanding of how the process work which could lead to mistakes
What do process maps help identify?
Who does what How tasks are done What the inputs and outputs are Where the waste is Methods of enhancing business memory
What are the risks of process maps?
Buy-in issues Business politics/ Analysis in a vacuum Time and resource consuming Doing it for the sake of it
What are the three tests to identify value adding activities?
Does the step physically change the input or is it a necessary pre-requisite to doing so?
Would the customer be interested or care about this step?
Is the step carried out ‘right first time’?
How do you ensure success?
Figure out what you are expecting to gain
Get to know your process a little bit before starting (objective)
Involve both customers and process stakeholders Effective use of project management will be required
Transparency
What are the stages of SIPOC?
Suppliers-Inputs-Process-Outputs-Customers
What questions could be asked to define the Suppliers & Inputs stages of a SIPOC?
Who are your suppliers? What do they supply?
Where do they affect the process flow?
What effects do they have on the process and on the outcome?
What questions could be asked to define the Process stage of a SIPOC?
Why does this process exist? What is the purpose of this process?
What is the outcome?
What happens to the inputs? What conversion activities take place?
What questions could be asked to define the Outputs & Customers stages of a SIPOC?
Who uses the products from this process? Who are the customers of this process? What product does this process make? What are the outputs of this process? At what point does this process end?
Give examples of process mapping techniques.
Value stream mapping High and low lever flow charts IDEF family of methods Deployment charts Spaghetti diagrams Post-It technique Work flow diagrams
What is failure demand?
Demand caused by a failure to do something or do something right for the customer
What is on the Define completion checklist?
Clear problem statement supported by data
High-level map of process to be improved
Description of the improvement project
Convincing business case showing that it is aligned with business goals, business benefits and critical customer requirements
Team on board
Project objectives are understood and agreed
Project timeline defined and agreed
Project risks identified and evaluated
