Black Belt Training - Module 1 - Day 1

7/23/2019 Black Belt Training - Module 1 - Day 1

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Belt Training

WelcomeWelcome toto ModuleModule 11



Administration Details

Emergency Exits and Fire Drills

Contact Point

Mobile phones and PagersPlease leae them s!itched o"" duringthe !or#shop sessions$

Co""ee and Meals



%ntroductions

Who are you&

Where do you !or#&

What is your#no!ledge o"

DMA%C'&



The Course (tructure

Module 1

Module )

Module *

Module +

%ntroduction to DMA%C' and to the

DMA%C' process$ The "irst t!o phases,De"ine and Measure- o" the DMA%C'process$ ,* days-

The third phase ,Analyse- in the DMA%C'process$ ,* days-

The "ourth and "i"th phases ,%mproe and

Control- in the DMA%C' process$ ,* days-

The "inal phase ,'eplicate- in the DMA%C'process$ ,1 day-



This Module.s /b0ecties

nderstand the basic philosophy o" DMA%C' nderstand the "undamentals o" data

management$

nderstand the DMA%C' process

Proide all the material so that the "irst t!ophases can be commenced 2 De"ine andMeasure$



This Module.s Agenda

0830

1000

1230

1330

1500

1830

Day *

Lunch

Measure3 (tep 4Collecting the

data

Measure3 (tep 4

The next phase

Day )

Lunch

De"ine3 (tep *Forming Team

Measure3 (tep 5(ta#eholders

Measure3 (tep 67eed

Measure3 (tep 8

9ision

De"ine3 (tep +De"ining

/pportunity

Measure3 (tep 67eed

Day 1

%ntroduction

to DMA%C'

The DMA%C' process

Lunch

DataManagement

P:T Process

De"ine3 (tep 1and (tep )

%ntroductions



Co""ee Brea# 2 1; minutes



%ntroduction to%ntroduction toDMA%C'DMA%C'

Belt Training



DMA%C' is about reducing ariation

/""2Target

<<

<<<<<

<<<

<

< <

9ariation

<

<

<

<

<<

<

<

<<<

Centre theProcess

Reduce theSpread

/n2Target

<

<

<<<< <<<<<

<< <



*σ

+σ

6σ

8σ

(igma

As ariation reduces so do errors

1 misspelled !ord eeryother line o" text

1 misspelled !ord in1* lines o" text

1 misspelled !ord in5 pages o" a document

1 misspelled !ord in+6; pages ,a boo#=-

De"ects

1 hour !asted eeryt!o !or#ing days

1 hour !asted eery) !or#ing !ee#s

1 hour !asted in)$+ !or#ing years

1 hour !asted in18; !or#ing years

Time

But getting there isn.t easy 2 it needs a systematic andBut getting there isn.t easy 2 it needs a systematic and

disciplined approach to process improementdisciplined approach to process improement

Money

>85?;;; !asted per >1 million in assets

>8?;;; !asted per >1 million in assets

>)*; !asted per >1 million in assets

>* !asted per>1 million in assets

Factor

x)8

x84

x11

DMA%C' is *$+ de"ects in eerymillion opportunities



Where are !e today &

Actiity dpmo (igma ,de"ects per million opportunities-

Manual assembly 1;;; +$6Automated assembly 18 6$8Typical s@! build *;;; +$)Credit notes );?;;; *$+Exchange build 18;?;;; )$67et!or# upgrades )6;?;;; )$)

;

6

1;

16

);

)6

*;

8 6 + * )

(igma eel

Cost o"9ariation

o" (ales

The Cost$



(o !e must reduce ariation$$$

DMA%C' is consistently meetingcustomers. reuirements pro"itably

$but !ho sets the targets&

Customers? Customers and

Customers



no!ing !hat causes the outputs to ary

DependentDependent

/utput/utput E""ectE""ect

(ymptom(ymptom

Monitor Monitor

<<11 $ $ $ <$ $ $ <NN

%ndependent%ndependent

%nput2Process%nput2Process CauseCause

ProblemProblem

ControlControl

Therefore we need to understand the X’s andTherefore we need to understand the X’s and

improve the ones with most influence on Y improve the ones with most influence on Y

The variation in Y is caused by variation of the X’s

/utput ,.s- Process,<.s- %nput ,<.s-



'emember it.s the process not the people

“ “ Eightyfive percent of the reasonsEightyfive percent of the reasonsfor failure to meet customerfor failure to meet customer

e!pectations are related toe!pectations are related to

deficiencies in systems anddeficiencies in systems and process" rather than the employee# process" rather than the employee#

The role of management is toThe role of management is to

change the processchange the process rather thanrather than$adgering individuals to do $etter#% $adgering individuals to do $etter#%

W Ed!ards Deming



But DMA%C' !ill impact and change people

GA programme aimed at the near elimination o"de"ects "rom eery product? process andtransaction. 2 &inancial Times

GA hard2edged programme to delier results. 'eil Sutcliffe( CE) *arconi Services

GA consuming passion s!eeping across the

company. 2 +ac, -elch( CE) .eneral Electric



:etting to DMA%C' is li#e$$$$$

$$$trying to eat an elephant



There"ore$$$

ots o" small chun#s 2 PR)+ECTS

A pro0ect must hae a minimum leel o" potentialimpact 2 T/*E or *)'EY

A rigorous uantitatie improement process"ocused on !hat is important to the customer 2 T0E 1*2/CR PR)CESS

Highly trained? highly capable people2 C02*P/)'S 3 4E5TS



Does it !or#&

Motorola 2 turnaround in semiconductormanu"acturing I "inancial per"ormance$

Allied (ignal 2 Cost saings exceeding J4;;msince1KK6$

:eneral Electric 2 most admired company t!oyears running? and consistently increasinggro!th and pro"it$



Case study3 Motorola

Motorola began implementing its 8σ improement

programme in 1K45 !hen it per"ormed at a +σ leel$

By 1KK) Motorola.s diisions aeraged a 6$)1σ leel o" per"ormance in their pursuit o" 8σ$

During the same period Motorola.s salesproductiity had increased "rom J84$K to J11;$1per employee and saings due to operationsimproements in the (A !as oer J)$) Billion$

Motorola.s 8σ per"ormance demonstrated thathigh uality and lo! cost can be mutuallyachieed$



Case study3 Allied (ignal

%mplemented 8σ in 1KK+ "or Loperations excellence$

%nitial + months? 8;; pro0ects reduced de"ects 84$

(aed J156M at bottom line in 1KK6 22 J1$)B in 1KK8=

,These saings do not include oerhead? inentory?indirect charges or aoidance costs 22 the impact is

bigger=- Fastest improement rate obsered implementing 8σ=

Expects to sae J1$4 billion annually ,8 o" reenues-!hen lin#ed to3

Product design Customer serice

Allied stoc# gains 18) ,December 1KK+2Nune 1KK5-



Case study3 :eneral Electric

:E began its 8σ e""orts in late 1KK6 and targets to sae oer

J1;B during the next year by reducing its current cost o"poor uality ,J5B a year- to less than J1B annually? ,J8Bsaings annually-$

'educing scrapped parts to 8σ leels$ 'educing re!or#ed parts to 8σ leels$ 'ecti"ying transaction mista#es to 8σ leels$

Analysts estimate 8σ could "ree another J)B in cash "romimproed inentory processes$

:E has trained )*; internal auditors as six sigma roingconsultants rotating to three assignments annually? inaddition :E !ill train a total o" 1?+;; blac# belts$



Why does (ix (igma !or# &

DMA%C' is drien by top leel management$

DMA%C' is aligned to strategic businessob0ecties$

DMA%C' has uniersal application across thebusiness$

Pro0ects are selected based on #ey businessissues and !ill not be chosen i" there is notangible impact on the business$

DMA%C' pays "or itsel"O returns are "ar greater

than inestment$ Bene"its are isible and traceableO "ocus is on

pro"itability$



Why Are Most Companies at *2 +σ

&

* sigma + sigma 6 sigma 8 sigma

MostMost

companiescompanies Already G(uccess"ul.

Dependence on inspection andre!or#

'eliance on trial and error

'e!arding "ire2"ighting behaiour

ittle "ocus on ualitymeasurements

Functional silos



Ta#ing the /perational Excellence eap

(trong and sustained leadership

(ystematic and rigorous approach

(trong "ocus on measurement andanalysis

Continuous and Brea#throughimproement

Dedicated pro0ect support

* sigma + sigma 6 sigma 8 sigma

What.s needed to ma#e the leap&

MostMost

companiescompanies



%n Conclusion? DMA%C' is3

A philosophy

A measurement

A methodology A standard 2 !orld class per"ormance



BeltM1D1 -26

Exercise 1 2 Why 8σ ???

%denti"y the possiblebene"itsto DMA%C'

%denti"y the possibleobstacles toDMA%C'

Ho! might you sellDMA%C' in yourdiision&



BeltM1D1 -27

unch Brea# 2 8; minutes



Belt Training

%ntroduction to%ntroduction toData AnalysisData Analysis



BeltM1D1 -29

(ix (igma is about reducing both$

/""2Target

<<

<<<<<

<<<

<

< <

9ariation

<

<

<

<

<<

<

<

<<<

Centre theProcess Reduce theSpread

<

<

<<<< <<<<<

<< <

To do this you need dataand you need to be able to analyse that data



BeltM1D1 -30

/""2Target 9ariation

Centre the

Process

Reduce the

Spread

/n2Target

Dra!ing the same picture a di""erent !ay$$



BeltM1D1 -31

(iing ariation$$$

<

<<<<

<

<<<<<

<< <

<

<

<

<

< <

<

<

<<

<

(tandard deiation Qσ

QΣ

,mean2alue-)

n

σ

Q large number

σ

Q medium number

σ

Q small number

<

<

<

<

<

<

<

<

<<<



BeltM1D1 -32

'educing ariation$$$

'educing ariation is bene"icial?'educing ariation is bene"icial?

but you also need to #no! thebut you also need to #no! thelimits that apply to the processlimits that apply to the process

output$output$

These are imposed eitherThese are imposed either

directly or indirectly by thedirectly or indirectly by the

customer$customer$

The !ider the process spread? orThe !ider the process spread? or

the tighter the limits? the morethe tighter the limits? the more

de"ects "rom the process$de"ects "rom the process$



BeltM1D1 -33

Process Potential %ndex 2 Cp

%t !ould be use"ul i" !ecould hae a "igure that

de"ines ho! good aprocess is? in relation tothe speci"ication limits$

The "irst o" these is#no!n as the ProcessPotential %ndex andabbreiated to Cp

Process Potential? Cp

Q (2 ( DMA%C'

o!er (peci"icationimit ,(-

pper (peci"icationimit ,(-



BeltM1D1 -34

Typical alues o" Cp

Approximately )? CApproximately )? Cpp Q ;$5Q ;$5

Approximately *? CApproximately *? Cpp Q 1$;Q 1$;

Approximately +? CApproximately +? Cpp Q 1$*Q 1$*

,"or DMA%C'? C,"or DMA%C'? Cpp Q )$;-Q )$;-



BeltM1D1 -35

Centering the process $$$

<

<<<<

<

<<<<<

<< <

<

<<<

<<<

<<

<

<

<target

target

The process is capable?The process is capable?

but o"" target$ Ruotingbut o"" target$ Ruoting

standard deiation or eenstandard deiation or eenCCpp does not coney thedoes not coney the

sie o" the problem$sie o" the problem$

target

<<

<<

<<<

<<<

<

< <



BeltM1D1 -36

Process Capability %ndex 2 Cp#

Cp assumes the process

is centred on the targetalue? !hich is rarely thecase$ (o? !hen it isn.t?!e hae to use another

index$

This is the ProcessCapability %ndex and

abbreiated to Cp#

o!er (peci"icationimit ,(-

pper (peci"icationimit ,(-

Process Capability? Cp#

Q 7earest (pec imit 2 Mean *

σ



BeltM1D1 -37

Typical alues o" Cp#

CCp#p# Q ;$+Q ;$+

CCp#p# Q ;$4Q ;$4

CCp#p# , Q C, Q Cpp - Q 1$*- Q 1$*

%nterpreting Cp#

%ncapable S 1Capable 1? S 1$69ery capable 1$6



BeltM1D1 -38

Transactional Processes

%n transactional processes !e o"ten do not

#no! the speci"ication limits "or the process$There"ore !e can not determine the sigmaleel in the method using spec limits$

Ho!eer? !e !ill #no! the number o" de"ects

produced by the process and the DMA%C'leel can be calculated "rom this number$

De"ectie :ood



BeltM1D1 -39

Method "or calculating Gdpmo.

Count the obsered leel o" de"ects$,/ccasions !hen customer reuirements arenot met$-

Determine the number o" opportunities "orde"ects to occur !ithin the process$

From the t!o "igures calculate the Gdpmo.,number o" de"ects per million de"ect

opportunities-$ Derie process DMA%C' "rom a Gdpmo. table$

"



BeltM1D1 -40

'ules "or calculating Gdpmo.

The de"ect opportunity must be important to

the sta#eholder @ customer$ When calculating process DMA%C' a"ter

improement actions? use the same numbero" opportunities as "or DMA%C' be"ore the

changes$ Don.t arti"icially hi#e the number o"

opportunities 2 they must be reasona$ly li#elyto occur=

First2pass yield is used? not "inal yield incalculating DMA%C'$

C l l ti P DMA%C'



BeltM1D1 -41

Calculating Process DMA%C'

7umber o" units processed 7 Q UUUUUUUUUU Total number o" de"ects made

,include de"ects made and later "ixed- D Q UUUUUUUUUU

7umber o" de"ect opportunitiesper unit / Q UUUUUUUUUU

Calculate V de"ects per millionopportunities dpmo Q 1?;;;?;;; x ,

Q 1?;;;?;;; x

Q UUUUUUUUUU

oo# up process DMA%C' inDMA%C' conersion table DMA%C',(T- Q UUUUUUUUUU

D7 x /

, -

, - , -

-

DMA%C' ( l



BeltM1D1 -42

DMA%C' (cale

To increase the DMA%C' alue reuires acorresponding exponential reduction in de"ects$

σ

,DMA%C'leel-dpmodpmo (de"ects permillion

opportunities- ield ield

*;4?6*5 )

88?4;5 *

8?)1; +

)** 6

*$+ 8

8K$); ;$5

K*$*) 1

KK$*5K 1$*

KK$K55 1$5

KK$KKK88 )

CCpp

%n the next module !e !ill loo# in detail at the Data



BeltM1D1 -43

%n the next module !e !ill loo# in detail at the DataAnalysis Tools because$

We !ill hae to understandariation and distribution$

We hae to be able to compareone set o" data to another$

We o"ten hae to use samplesrather than test eerything$

We !ill hae to test out ourtheories and understand theresults$

We hae to predict !hat !illhappen !ith some degree o"con"idence$

Data AnalysisTools

E i * B li i



BeltM1D1 -44

Exercise * 2 Base lining

se the internalscrap and customerre0ects to calculate

dpmo and theDMA%C' leel$

Case study



BeltM1D1 -45

%27exus Belt Training

%ntroduction to%ntroduction tothe DMA%C'the DMA%C'

ProcessProcess

DMA%C' P B # d



BeltM1D1 -46

DMA%C' Process 2 Bac#ground

%t has built on our #no!ledge o" otherimproement methodologies that !e haeused? e$g$ %DEA? DEFEAT? BEM Wor#shops$

%t has built on the Public Domain material "orDMA%C'$

%t has built on the company.s experiences o"

balancing change management and statistics$

% t d i th DMA%C' P



BeltM1D1 -47

%ntroducing the DMA%C' Process

A 8 phase? ); step rigorous and uantitatie

improement process$ ses best practice tools and techniues "rom

change? pro0ect and data managementdisciplines$

%ncorporates monitor and reie! mechanisms$ Training is normally aligned !ith pro0ect

actiity$

'euires3 Actie senior champions$

Dedicated "ull2time resources$

Th DMA%C' M th d l



BeltM1D1 -48

OPPORTUNITIES

Stats Package

Tools &

Techniques

•Rework•Delays•Complaints

•Expediting•etc. etc.

•Perormance•Customers•Proita!ility

User Guide

The DMA%C' Methodology

'EP%CATECONTROL %MP'/9E A7A(E MEA('E DEF%7E

Project Teamham!ion

Th DMA%C' P



BeltM1D1 -49

The DMA%C' Process

De"ine 2 "orming a team !ith agreed? clear goals ande""ectie sponsorship$

Measure 2 inoling users o" the process and gatheringdata on current per"ormance$

Analyse 2 identi"ying and uanti"ying root causes o"current per"ormance limitations$

%mproe 2 implementing per"ormance improements$Control 2 achieing predicted bene"its and sustaining

per"ormance$

'eplicate 2 maximising the bene"its o" the learning gainedduring the pro0ect$

'EP%CATECONTROL %MP'/9E A7A(E

MEA('E DEF%7E

OPPORTUNITIES

The Tool#it



BeltM1D1 -50

The Tool#it

ProcessAnalysisTools

Data AnalysisTools

ChangeManagement

Tools

Pro0ect

ManagementTools

The Tool#it



BeltM1D1 -51

The Tool#it

sing "acts and real datasing "acts and real data

to ma#e decisions?to ma#e decisions?

there"ore3there"ore3 Teams trained to

understand andinterpret data$

Data tools to ensurethe correct data iscollected$

(tatistical (o"t!aretool to speed thestatistical analysis$

Process

AnalysisTools

Data AnalysisTools

Change

ManagementTools

Pro0ectManagement

Tools

The Tool#it



BeltM1D1 -52

The Tool#it

Processes delier theProcesses delier theitems to the customer?items to the customer?

there"ore3there"ore3

Teams trained tounderstand andanalyse processes$

Process Analysis toolsin the general tool #it$

Process

AnalysisTools

Data AnalysisTools

Change

ManagementTools

Pro0ectManagement

Tools

The Tool#it



BeltM1D1 -53

The Tool#it

Care"ul selection o"the Champion$

:eneral tools toensure so"ter side o"

change is managed$ %nolement o" Ma0or

(ta#eholders$

9ital that improements9ital that improements

are "ully implementedare "ully implementedand sustained?and sustained?

there"ore3there"ore3

Process

AnalysisTools

Data AnalysisTools

ChangeChange

ManagementToolsTools

Pro0ectManagement

Tools

The Tool#it



BeltM1D1 -54

The Tool#it

:uides de"ining pro0ectmanagement$

Wee#ly 'eie!s$

Milestones andMilestone 'eie!s$

Pro0ect Trac#ing Early

Warning (ystem$ Templates$

Many pro0ects? clearMany pro0ects? clear

targets? tight time2targets? tight time2

scales? there"ore3scales? there"ore3

Process

AnalysisTools

Data AnalysisTools

Change

ManagementTools

Pro0ectPro0ect

ManagementManagement

Tools

What.s 7e! &&&



BeltM1D1 -55

What s 7e! &&&

We Hae seen this be"ore& BT

Don.t "ocus on customer needs Don.t engage all the right people

Don.t hae a rigorous process

Don.t hae a consistent set o" tools

Don.t demonstrate bottom line impact

'esulting in incomplete@ inaccurate data @ in"ormation

'esulting in !rong or poor decisions

'esulting in $$ unsustainable solutions

another G"ailed. initiatie

Putting DMA%C' in Context



BeltM1D1 -56

Putting DMA%C' in Context

Business (ituationBusiness (ituation

• Process roughly de"ined !ithcapability )2+

σ

Customers Ghappy. but !antimproement

DMA%C' Brea#throughPro0ect

or " (eeral processes around

the company doing the same

tas#$ Customers Ghappy. but!ant improement

• 7o real process or erybro#en process$

Customers ery unhappy

%mproementPro0ect

DMAICR

Typical Di""erences



BeltM1D1 -57

Typical Di""erences

%ncremental Brea#through

-ho sets goal (enior Manager The Board

Processes ocal@(upport Core@ <"unctional

1uration * 2 8 months 1) 2 *8 months

Resources Part2Time Full2Time

Pay$ac, 1$6 2 * Times + 2 8 Times

Purpose 'esole critical Achiee strategic

issues ob0ecties

Ris, (mall High

Typical Approaches



BeltM1D1 -58

Typical Approaches

%ncremental Brea#through

+o$ Content Minor mod$ 'ede"ined

/T Systems Minor mod$ Ma0or mod$

S,ills Broadened 'ede"ined

)rganisation Existing 'e2aligned

Rewards6

/ncentives Modi"ied 'e2ealuated

5eadership (enior manager The Board

Tea Brea# 2 1; minutes



BeltM1D1 -59

Tea Brea# 2 1; minutes



BeltM1D1 -60

Belt Training

De"ineDe"ine

De"ine Process (ummary



BeltM1D1 -61

•Pro#ect Champion•Pro#ect Charter

•Pro#ect Plan

(ummaryo" (tarting

outcomes

Purpose3 $o get the

team esta!lished with

an agreed% clear opportunity

and eecti&e sponsorship

De"ine Process (ummary

'tep 'electing the

Champion

'tep )Deining the

*pportunity

'tep +,orming the

$eam

'tep 1Prioritising

*pportunities

Pro#ect 'ources

7ormally done be"ore the

pro0ect is "ormally set up

Prioritising /pportunitiesDEF%7E



BeltM1D1 -62

Prioritising /pportunities2 What is done&

Purpose To identi"y possible opportunities "or

improement in order to select the best ones"or the business at this time$

Delierables A list o" prioritised opportunities? !ith a

scoping document detailing bac#groundin"ormation? bene"its and resources reuired"or each possible improement opportunity$

(TEP 1

DEF%7E

Why PrioritiseDEF%7E



BeltM1D1 -63

y/pportunities&

(electing the right opportunity !here e""ort!ill not be !asted and the bene"its !ill betangible and sustainable$

nderta#en so that e""ort and resourcescan be 0usti"ied to all inoled$

Aoids !or#ing on opportunities !here the

organisation is not ready$

(TEP 1

DEF%7E

Prioritising /pportunities

DEF%7E



BeltM1D1 -64

g ppProcess

Pro#ect'ources

-enerate

nitial List

Critical $o

/uality aspects

nitial process

!aseline

-ap 0nalysis

Prioritise on

C$/s and gaps

Who 27ormally done be"ore the pro0ect7ormally done be"ore the pro0ect

team has been "ormed 2team has been "ormed 2

Done by #ey personsDone by #ey personsin the business in the business

Ho! 2

(TEP 1

DEF%7E

Hearing 9oicesDEF%7E



BeltM1D1 -65

g2 :enerating the %nitial ist (TEP 1

DEF%7E

•Account manager "eedbac#•Customer complaints

•Customer sureys

9 o i c e

o " t h e c u

s t o m e r

•Wor# Areas•Hotline ,%ntranet-

9 o i c e o " t

h e p e o p l e

BusinessBusiness%mpact%mpact,9oice o",9oice o"

(hareholder-$(hareholder-$

•

(hare price•Future direction

•(trategic analysis•'is#s

9oice o" the process•(crap and !aste costs

•E""iciency @ oertime•Per"ormance measures

Hearing the Customer 9oice DEF%7E



BeltM1D1 -66

Hearing the Customer 9oice

DMA%C' is aboutconsistently meetingcustomers. reuirementspro"itably$ There"ore inprioritising the pro0ects !eneed to select those !here

the customer is least happy!ith our per"ormance$

Must listen to their oicesand conert their needs intomeasurable CTR.s ,Critical to

Ruality aspects-$

(TEP 1

DEF%7E

9 o i c e

o " t h e c u

s t o m e r 9

o i c e o " t

h e p e o p l e

9oice o" the process

Business%mpact,9oice o"

(hareholder-$

7ote that CTR.s can also come "rom other sta#eholders 2(hareholders? Employees? (ociety? (uppliers and :oernment$

CTR.s to .s to <.s A7A(E



BeltM1D1 -67

CTR s to s to < s

2oice o Customer Their #ey issues in

Gtheir spea#.

ssuesThe #ey issues in

Gour spea#.

C$/sThe #ey issues expressed ina !ay that can be measured

3 measures

The process output measuresrelating to that CTR

4 measuresThe process and input measuresthat !ill in"luence the sie o" $ is a "unction o" <1? <)? <* etc$

(TEP K

A7A(E

CTR.s and .s and <.s



BeltM1D1 -68

CTR s and s and < s 9oice o" Customer

L% !ant to hae a hot mug o" co""ee

%ssueLCustomer !ants a mug o" co""ee !hich they can start to drin# !ithin 1 minuteo" being seated$

CTR

Mug o" co""ee needs to be < X )o

C at table$ Measure

Temperature o" co""ee at centre o" mug? 6 cms "rom bottomo" mug? at point o" pouring$

< Measures

<1 2 temperature o" !ater used to ma#e co""ee ino

C$<) 2 temperature o" mil# used to ma#e co""ee in oC$<* 2 ratio o" hot !ater olume to mil# olume$<+ 2 time "rom pouring co""ee to point o" sale in seconds$

eys to 9oC translation DEF%7E



BeltM1D1 -69

eys to 9oC translation

As# the customer? do not assume that you canspea# on the customer.s behal"$

Probe to get underneath and really understand$,se the ipling chec#listO !hat? !hy? !hen? ho!?

!here and !ho&- Ma#e sure your translations ma#e sense "or your

organisation$

'eie! and re"lect !ith the customer and theprocess team$

'e"ine and prioritise reuirements$

(TEP 1

DEF%7E

ipling Chec#list



BeltM1D1 -70

p g L% #eep six honest sering2men? they taught me all % #ne!? their names are

What and Why and When? and Ho! and Where and Who$

What is done& is the purpose o" it&

and is it necessary&

Why is it done& is it done this !ay& and is it 0ust historic&

When is it done& !ould be better& should it be done? be"ore or

a"ter&

Ho! is it done& can it be done better@ easier@

more e""iciently @moree""ectiely&

Where is it done& is the best place to do it& and can it be done

some!here else&

Who does it& could do it more easily@

economically&

:uidelines For CTR.s DEF%7E



BeltM1D1 -71

:uidelines For CTR s

Customers. o"ten express their reuirements inague statements$ These hae to be translatedinto measurable CTR.s$

Write the CTR as a reuirement? not the solution$

Be concise$ Write as a sentence and maybe include an

example$

'emember? CTR.s can be? and !ill need to be

measured$ Write the CTR as a positie statement$

(TEP 1

DEF%7E

Example3 Translating Customer DEF%7E



BeltM1D1 -72

Example3 Translating Customer7eeds to CTR.s

9oice /" TheCustomer

ey %ssue CTR

%" %.m not put onhold? % al!ays

seem to get the!rong departmentor person

Add additional menu itemsto oice system ,BAD-

Customer gets to the correctperson the "irst time

,://D-

The customer!ants to be put

through uic#lyto the rightperson

ou send me aninoice atdi""erent times

o" the month

Customer !ants timely bill,BAD-

Customer bill receied 16th

day o" month? eery month$,://D-

Consistentmonthly billing

(TEP 1

DEF%7E

Hearing the Process 9oice DEF%7E



BeltM1D1 -73

Hearing the Process 9oice

nderstanding ho! ourprocesses are per"ormingtoday and !hich are causingproblems3 Do they meet customer

reuirements consistently&

Ho! stable are they&

Ho! much do they cost&,re!or# and oertime=-

Can they be improed? or dothey need a "undamental

redesign& Baseline the processes 2 to

help prioritise those "orimproement$

(TEP 1

DEF%7E

9 o i c e

o " t h e c u

s t o m e r 9

o i c e o " t

h e p e o p l e



(hareholder-$

What is meant by DEF%7E



BeltM1D1 -74

ybase lining&

Base lining is ealuating initial processcapability$

We really ought to measure this? but thatcomes later

There"ore !e need to estimate3 Process DMA%C' Cp#

'olled ield Ruality 'elated Cost

(TEP 1

DEF%7E

Hearing the People 9oice DEF%7E



BeltM1D1 -75

Hearing the People 9oice

:ie the employees theopportunity to highlight the!ea# areas !ithin theorganisation3 Which processes are di""icult

to operate&

What reduces their morale&

Where do they continuallyhae to Gbuc# the system. to#eep the customer happy&

What processes? i" not

changed? !ill cause peopleto leae the organisation& =

(TEP 1

DEF%7E

9 o i c e

o " t h e c u

s t o m e r 9

o i c e o " t

h e p e o p l e



(hareholder-$

Hearing the (hareholder 9oice DEF%7E



BeltM1D1 -76

Hearing the (hareholder 9oice

oo# at all the potentialproblems and classi"y orran# in terms o" "inancialimpact 2 increased costs?reenue lost or at ris#$

Are !e li#ely to loosebusiness as a result&

What !ill help us to meet our"uture business strategy&

Ensure this ran#ed list meets

(hareholders. reuirements,CTR.s- 2 o"ten e""iciency?cost reduction? or 'oCE$

(TEP 1

9 o i c e

o " t h e c u

s t o m e r 9

o i c e o " t

h e p e o p l e



(hareholder-$

:ap Analysis DEF%7E



BeltM1D1 -77

p y

This is essentially sub0ectie$

Each management team member rates the process gap

as Ghigh.? Gmedium. or Glo!. ,or a ariant-$ 9oting and ran#ing allo!s processes to be listed

according to estimated gaps$

(ome discussion and "acilitation may be necessary?

including presentations o" past per"ormance measuresby process o!ners$

%denti"ication o" !here !e are ,baselining- to%denti"ication o" !here !e are ,baselining- to

!here !e should be relatie to the CTR process!here !e should be relatie to the CTR processelements$elements$

(TEP 1

(o prioritising is$$$ DEF%7E



BeltM1D1 -78

p g

For each problem? opportunity or

potential pro0ect identi"ying3 The business impact

the Gbottom line. "inancial impact?

the relatie e""ectieness o" the process?

impact on customers$

The resources reuired expenditure and the time o" all those inoled

i#elihood o" success an assessment o" the ris#s

(TEP 1

$$and plot on a Desirability DEF%7E



BeltM1D1 -79

p yMatrix

5ed

Low

6igh

B u s i n e

s s % m p a c t

'esources 'euired

Low 5ed 6igh

Likelihood o

'uccess

Low

5ed

6igh

(TEP 1

sing the Desirability Matrix DEF%7E



BeltM1D1 -80

g y

5ed

Low

6igh

B u s i n e

s s % m p a c t

'esources 'euired

Low 5ed 6igh

Likelihood o

'uccess

Low

5ed

6igh

Plot all potential projects

and then focus on the

large circles nearest to the

TLH corner.

. n c r e a s i n g D e s i

r a ! i l i t y

(TEP 1

Examples o" Poor Pro0ects DEF%7E



BeltM1D1 -81

p 0

Business %mpact Writing a report

Ruanti"ying the per"ormance o" a process

'educing cycle time on a non2bottlenec# process step

'esources %nstalling a ne! computer system

%mproing the pro"itability o" an entire product range

LFixing the annual planning process

i#elihood o" (uccess Depends on completion o" other ris#y pro0ects

7ot aligned !ith operational goals

'euires help "rom extremely busy people

(TEP 1

Exercise + 2 9oice o" the Customer



BeltM1D1 -82

Who are the customers

"or the process underconsideration&

se the 9oice o" theCustomer tool to

speci"y their mainneeds and translatethem to CTR.s$

Are there any otherCTR.s&

(electing the ChampionDEF%7E



BeltM1D1 -83

2 What is done&

Purpose To select the most appropriate senior person

to mentor the pro0ect team and champion the

improement !ithin the business$Delierables

The champion agreeing to sponsor the pro0ectand accepting the initial scoping document "or

the pro0ect$

(TEP )

Why Hae a Champion&DEF%7E



BeltM1D1 -84

Their role !ill be to$

Act as pro0ect sponsors?approing results? deliering resources?#eeping in touch? but not doing the !or#$

Proide genuine and committed leadership

throughout the entire change process$ Assist? encourage? gain support and remoe

roadbloc#s across the organisation$

Challenge the status uo$

%denti"y #ey players and gain their support$ 'eie! the pro0ect regularly$

(top the pro0ect i" appropriate$

(TEP )

our 9ie!s$$ DEF%7E



BeltM1D1 -85

What in your ie! are thes#ills and behaiours o" asuccess"ul champion&

What !ill you do i" yourchampion does not meetyour expectations&

(TEP )

The Champion shouldb

DEF%7E



BeltM1D1 -86

be3

A member o" the Diision Management Team$

(omeone !ith a speci"ic interest in the processor problem$

%deally the process o!ner$ Prepared to commit the necessary time and

support$

Experienced? !ith a good trac# record on

improement issues$

(TEP )

What is the Blac# Belt.s role&



BeltM1D1 -87

Wor# !ith the champion to bring about an

improement on a de"ined opportunity !ithin thegien time boundaries$

Coach a small team o" Gpart2time. improersO settingdirection? applying tools? managing ris#? trans"erring#no!ledge? deeloping their s#ills? discoering ne!perspecties and in"luencing results$

Promote DMA%C' across the organisation$

(elected "or technical pro"iciency? interpersonal s#illsand leadership ability$

Deeloped by pro0ect planning? statistics training?on2the20ob application and mentored reie!s$

The eadership (tyles



BeltM1D1 -88

Consult

Bargain

Participate

Facilitate

Delegate

Aoid

Autocratic

(tyles

Participating(tyles

Tell Exerting pressure? carrot and stic#? being directie$

(ell 'easoned case? persuading? personal appeal$

Coach Train? sho! Gho! to.

As# "or ideas? decide and in"orm$

:ie and ta#e

Wor# together as a team$

nbiased support and guidance

Assigning a tas#? allo!ing scope on ho!

7o inolement? leaing team on their o!n

The eadership (tyles



BeltM1D1 -89

Consult

Bargain

Participate

Facilitate

Delegate

Aoid

Autocratic

(tyles

Participating(tyles

Tell

(ell

Coach

All styles are alid and hae their

bene"its$ :ood leaders moe "romstyle to style as appropriate$

Which !ill be yourmain styles as a

Blac# Belt&

The eadership (tyles 2 Blac# Belts



BeltM1D1 -90

Consult

Bargain

Participate

Facilitate

Delegate

Aoid

Tell

(ell

Coach

When sed in DMA%C'3

2 Putting across "acts2 Communication

Pros32 uic#

Cons32 chec# authority leel2 chec# "acts are correct

2 buy2in may be limited




BeltM1D1 -91

Consult

Bargain

Participate

Facilitate

Delegate

Aoid

Tell

(ell

Coach

When sed in DMA%C'3

2 Putting across solutions2 Changing methods2 (elling the DMA%C' approach

Pros32 gets buy2in

Cons32 !hat is the contingency&2 ta#es time

2 smaller audiences




BeltM1D1 -92

Consult

Bargain

Participate

Facilitate

Delegate

Aoid

Tell

(ell

Coach

When sed in DMA%C'3

2 sing tools !ith team2 Teaching DMA%C'2 Handoer to !or# area

Pros32 gro!s s#ill base

Cons32 di""icult to do !ell2 initially can be slo!




BeltM1D1 -93

Consult

Bargain

Participate

Facilitate

Delegate

Aoid

Tell

(ell

Coach

When sed in DMA%C'3

2 (iing the opportunity2 'esearching root causes

Pros32 gets inolement

Cons32 ta#es time2 chec# balance o" ie!s

2 builds expectations




BeltM1D1 -94

Consult

Bargain

Participate

Facilitate

Delegate

Aoid

Tell

(ell

Coach

When sed in DMA%C'3

2 'olling out di""icult solution2 :aining co2operation

Pros32 !or#s !hen othermethods "ail

Cons32 can sho! !ea#ness

2 #no! the bargaining limits




BeltM1D1 -95

Consult

Bargain

Participate

Facilitate

Delegate

Aoid

Tell

(ell

Coach

When sed in DMA%C'3

2 Problem soling2 %mplementing pilot2 %mplementing solution

Pros32 strengthens team

Cons32 some team members !ill expect direction

2 it is easy to reert




BeltM1D1 -96

Consult

Bargain

Participate

Facilitate

Delegate

Aoid

Tell

(ell

Coach

When sed in DMA%C'3

2 Helping group deelop solution "or themseles

Pros32 ery good buy2in

Cons32 some team members !ill expect direction

2 "acilitation is di""icult




BeltM1D1 -97

Consult

Bargain

Participate

Facilitate

Delegate

Aoid

Tell

(ell

Coach

When sed in DMA%C'3

2 (haring the !or# load2 :etting actions completed

Pros32 e""icient use o" team

Cons32 some need chasing2 day 0ob ta#es prime place

2 result not as expected




BeltM1D1 -98

Consult

Bargain

Participate

Facilitate

Delegate

Aoid

Tell

(ell

Coach

When sed in DMA%C'3

2 Ensuring you do not do the 0ob "or the !or# area2 /nce handoer complete

Pros32 essential at right time

Cons32 #no!ing !hen to leae2 seen as lac# o" interest

2 di""icult to !al# a!ay

The autocrat in sheep.s clothing



BeltM1D1 -99

L:uess !hat.s on my mindAs# a uestion and #eep on going until the ans!er

corresponds to your ans!er$

Clay Pigeon (hooting(hoot do!n eery ans!er !ith reasons !hy they can not!or#? until an ans!er corresponds to your ans!er$

indly ncle@AuntLWhat % !ould do i" % !ere you? is$$$

eading RuestionsTelling the group under the guise o" as#ing$ LWouldn.tyou agree that the best !ay to do it is $

The expertLThere is only one !ay to do this? so do it my !ay$

Exercise 6 2 My team role as a BB&



BeltM1D1 -100

What do you need todo as the team leaderto set up a good!or#ing relationship!ith the team&

What !ill help tocement your role as

leader&

/ernight Challenge



BeltM1D1 -101

Create a scheme toCreate a scheme tohelp an indiidual tohelp an indiidual to

remember the stepsremember the steps

that ma#e up thethat ma#e up the

DMA%C' process$DMA%C' process$

S

SS

S

S S



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Black Belt Training - Module 1 - Day 1