Bonacorsi Consulting Define Master Template

AnalyzeAnalyze ImproveImproveDefineDefine MeasureMeasure ControlControl

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<Project Title (State From ... To)>

< Last Name, First Name >

Wave No: <xx>

Review Date: <xx/xx/xxxx>

AnalyzeAnalyze ImproveImproveDefineDefine MeasureMeasure ControlControl

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Bonacorsi Consulting 3

ImproveImprove

Define Phase Road Map

• Project Charter• Voice of the Customer and Kano Analysis

• SIPOC Map• Project Valuation/ROIC Analysis Tools• RACI and Quad Charts• Stakeholder Analysis• Communication Plan• Effective Meeting Tools• Inquiry and Advocacy Skills• SWOT Analysis• Time Lines, Milestones, and Gantt Charting

• Pareto Analysis

• Team election and scoping• Review Project Charter • Validate High-Level Value Stream Map and Scope

• Validate Voice of the Customer and Voice of the Business

• Validate Problem Statement and Goals

• Validate Financial Benefits• Create Communication Plan• Select and Launch Team• Develop Project Schedule• Complete Define Gate

ToolsActivities

ControlControlMeasureMeasureDefineDefine AnalyzeAnalyze

DefineDefine


Project Description Describe the project in non-technical terms

?

Define the project’s scope and boundaries (locations, products, operations, etc) Is the scope reasonable? Have key constraints and key assumptions been

identified?

Where are you feeling the pain?

?

DefineDefine

Enter Key Slide Take Away (Key Point) Here


Responsibility Grid Decision 1 = should be the only one to make this decision 2 = should have veto power over this decision3 = should be one of those who votes

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Decision 1 = should be the only one to make this decision 2 = should have veto power over this decision3 = should be one of those who votes

Charter

Define

Measure

Analyze

Improve

Control

Decision 1 = should be the only one to make this decision 2 = should have veto power over this decision3 = should be one of those who votes

Execution A = has to executeB = has to assist in execution (provide information,…)C = not involved in execution

Responsibility P = Perform A = Approve R = Review

Responsibility GridClarifying roles is a critical preliminary step for setting

Improvement teams up for success!DefineDefine



Team Effectiveness Ground Rules

Team Roles

Team Meeting Frequency

Tools used by Team

Team Issues (Schedule, Vacations, Availability, Communication)

Other

DefineDefine



Strategy - Thought MapAre the

team members

identified?

Problem

Has the CTQ’s been

defined?

Are the CTQ’s

measurable?

Is Y=F(X) establishe

d?

Do we have a measurement

system?

Are my champions

and Controller briefed? Critical

variables identified?

Can we control X’s?

Can we have

dashboards on X’s?

DefineDefine



Product / Service Customers Potential Segments

Customer Segmentation Matrix


DefineDefineCustomer Segmentation Matrix



DefineDefineKano Analysis ChartRanking

of Customer Needs


VOC PlanProcess Name: Project Name:

Created By: Date Initiated:

Location: Current Revision Date:

Additional Information:

Customers and Segments

• List the various customers (external) and other key stakeholders (business partners, regulatory agencies, etc.) of your process.

Are there different types of stakeholders who may have very different needs? If so, list these as different segments.

• ?• ?• ?

What You Want to Know

Develop a list of specifically what you want to know about your customers and other stakeholders needs.

Use the following list as a guide: What are the most important process outputs

(products/services)? What is the performance level of the important outputs? What are the problems with the outputs? What is their impact? What do you like about _______? What can be improved about _______? What can be done to make your job easier? What specific recommendations would you make to us? How do we compare relative to our competitors? How easy is it to do business with us?

• ?• ?• ?• ?• ?• ?• ?• ?• ?• ?• ?• ?

DefineDefine



VOC Plan (Cont.)Information Sources (Check the data sources that you think will be most useful)

Reactive Data Complaints Problem or service hot lines Technical support calls Customer service calls Claims, credits Sales reporting Product return information Warranty claims Web page activity Other:

Proactive Data Interviews Focus groups Surveys Comment cards Sales visits/calls Direct observation Market research/monitoring Benchmarking Other:

VOC Collection Plan Summary

• Summarize your plans to gather and use both reactive and proactive sources of VOC information.

Indicate how much data you will get, how you will get it, and when. Include, for instance: What specific sources of data you plan on exploring The number of interviews or surveys you plan to use Which customers you will contact The amount of data you will collect - When you will start and end the

data collection How you plan on analyzing the gathered information Etc.

• ?• ?• ?• ?• ?• ?• ?• ?• ?

DefineDefine



Voice of the Customer (VOC)

Customer

Voice of the

Customer

Key Customer Issue(s)

CriticalCustomer

Requirement

Who is the Customer?

What does the customer want from

us?

We need to identify the issue(s) that prevent us from

satisfying our customers.

We should summarize key issues and translate them into specific and

measurable requirements

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DefineDefine



Voice of the Customer (VOC)

Customer “Voice of the Customer” Verbatim

Categories: Delighters / One-

Dimensional / Must-Be’s

Critical To Satisfaction

<Customer> <“…..”> <….> <Design / Service / Process>



Who are the customer focus groups?

Questions

<Right Click, and select Add Text>

What methods were used to capture customer needs?


What CTQ is the primary focus for this project?



DefineDefine


Critical-to-Quality (CTQ) Tree

Profitability

Effectiveness of return

Share

Supply chain responsiveness

Supply chain Delivery reliability

Gross Margin

Operating Income

Net Income

Performance attribute (Big Y)

Level 1

Supplier on time

P.O on time

Warehouse on time & in full shipment

3PL on time

Return on assets

Revenue

COGS

Sales General & Admin (SG&A)

Corporate Taxes

Level 2 (CTQ:Y)

Delivery Performance

Fill rate

Perfect order fulfillment

<Right Click, Add Text><Right Click, Add Text>Process Requirement

Defect <Right Click, Add Text><Right Click, Add Text>

<Right Click, Add Text><Right Click, Add Text>Unit of Measure

Data Type <Right Click, Add Text><Right Click, Add Text>

DefineDefine



VOC Prioritized Comments

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1 2 3 4 5Loan Approval Cycle Time 5 <= 14 days 9 9 9 0 0 0 1351st Call Resolution 2 >= 75% 1 0 9 0 0 9 38Approval to Loan Close Cycle Time 5 <= 30 days 0 0 1 3 9 0 65Fee (Good Faith Estimate) Accuracy 3 >= 85% 9 3 1 0 0 1 42Invoice Completeness 4 100% 9 9 9 0 0 1 112Average Speed To Answer 1 <= 15 sec 1 0 0 0 0 0 1Unexpected Fees 2 <= $5 9 1 1 9 1 1 44Totals "How Importance" 129 92 109 33 47 27

Importance Rating LegendStrong Impact 9Moderate Impact 3Weak Impact 1"Blank" for no Impact

Competitor Comparison:

Washington Mutual

Wells Fargo

Countrywide

Bank of America

Correlation Matrix

Strong Positive

Positive

Negative

Strong Negative

"Blank" for No Correlation

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Importance Ratings

Strong Impact 9

Moderate Impact 3

Weak Impact 1

Importance Ratings

Strong Impact 9

Moderate Impact 3

Weak Impact 1

Quality Functional Deployment (QFD)


DefineDefine


Project Definition - Includes/Excludes

What:

Where:

When:

Who:

Time:

Includes ExcludesProject Scope

DefineDefine



VOC - SIPOCS I P O C

Suppliers Input Process Output CustomersProviders of the

required resourcesResources required

by the process(Numerical

requirements on inputs)Requirements

Top level description of the activity Deliverables from the process

(Numerical requirements on inputs)

Requirements

Stakeholders

• ?• ?• ?

• ?• ?• ?

• ?• ?• ?

• ?• ?• ?

• ?• ?• ?

• ?• ?• ?

DefineDefine


Start

Stop


Schedule Review high-level schedule milestones here

Phase Completions Gate Reviews Executive Briefing

Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08 Apr 08

Phase 2: MeasurePhase 2: MeasurePhase 2: MeasurePhase 2: Measure

Phase 3: AnalyzePhase 3: AnalyzePhase 3: AnalyzePhase 3: Analyze

Phase 4: ImprovePhase 4: ImprovePhase 4: ImprovePhase 4: Improve

Phase 1: DefinePhase 1: DefinePhase 1: DefinePhase 1: Define

Phase 5: ControlPhase 5: ControlPhase 5: ControlPhase 5: Control

Tollgate Scheduled Revised Complete

Define: XX/XX/XX - XX/XX/XX

Measure: XX/XX/XX XX/XX/XX XX/XX/XX

Analyze: XX/XX/XX XX/XX/XX XX/XX/XX

Improve: XX/XX/XX XX/XX/XX XX/XX/XX

Control: XX/XX/XX XX/XX/XX XX/XX/XX

Tollgate Review ScheduleTollgate Review Schedule

DefineDefine



Team CharterResource Plan Project Information Tollgate Review Dates

Project Lead

Project Sponsor

Project Champion

Coach

Team Members

Define

Measure

Analyze

Improve

Control

Rolling Action Item List (RAIL)Meeting Date

Meeting FrequencyProject Status

Green (Done) Red (off-track) Yellow (WIP)

Date Signoff

DefineDefine



Project CharterBusiness Case

<Explain why did you pick up this project?>

Problem Statement

<Explain the pain felt by the customer>

SMART Goals

CTQ Baseline Actual World Benchmark

Customer Satisfaction Benefits

<Explain the benefits for the customer>

Project Scope

• Process Start: <…>• Process End: <…>• In Scope: <…>• Out of Scope: <…..>• Constraints: <…>

Key Learning's• Impacted Process: <…>• Cultural Change:<…>• Organizational Change: <…>

Recommendations• Effort Replication Areas: <…>

DefineDefine



Critical Path Analysis / Pert / Gantt Chart


DefineDefine


Business Impact State financial impact of project Separate “hard or Type 1” from “soft Type 2 or 3” dollars State financial impact of future project leverage opportunities

DefineDefine


Annual Estimate Replicated Estimate

Revenue Enhancement

• Type 1: ?• Type 2: ?• Type 3: ?

• Type 1: ?• Type 2: ?• Type 3: ?

Expenses Reduction

• Type 1: ?• Type 2: ?• Type 3: ?

• Type 1: ?• Type 2: ?• Type 3: ?

Loss Reduction

• Type 1: ?• Type 2: ?• Type 3: ?

• Type 1: ?• Type 2: ?• Type 3: ?

Cost Avoidance

• Type 1: ?• Type 2: ?• Type 3: ?

• Type 1: ?• Type 2: ?• Type 3: ?

Total Savings • Type 1: ?• Type 2: ?• Type 3: ?

• Type 1: ?• Type 2: ?• Type 3: ?


Business Impact Details Type 1: Describe the chain of causality that shows how you determined the Type 1 savings. (tell

the story with cause–effect relationships, on how the proposed change should create the desired financial result (savings) 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 Type 2 savings. (tell the story with cause–effect relationships, on how the proposed change should create the desired financial result (savings) in your project )

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 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?

DefineDefine



SWOT AnalysisS

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StrengthStrength

WeaknessWeakness

OpportunityOpportunity

ThreatThreat

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Multi-Generational Project PlanGen1 Gen2 Gen3

Target Date

MGPP

Metrics

Dependencies

Vision

Key Functionality

Technology Requirements

Target Customers

DefineDefine



Process Bottleneck Identification & Workload Balancing

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Takt Rate Analysis compares the task time of each process (or process step) to: Each other to determine the time trap Customer demand to determine if the time trap is the constraint

Net Process Time AvailableNumber of Units to Process

Takt Time =

DefineDefine


Influence Strategy


DefineDefine


Communication Plan

AudienceAudience MediaMedia PurposePurposeTopics of Topics of

Discussion/Discussion/Key MessagesKey Messages

OwnerOwner FrequencyFrequency Notes/StatusNotes/Status

DefineDefine



RACI Chart

Step Action/TaskResponsibl

eAccountabl

e Consulted Informed

1

2

3

4

5

6

7

8

9

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R = Responsible – The person who performs the action/task.

A = Accountable – The person who is held accountable that the action/task is completed.

C = Consulted – The person(s) who is consulted before performing the action/task.

I = Informed – The person(s) who is informed after performing the action/task.

DefineDefine



Current Status Key actions

completed

Issues

Lessons learned

Communications, team building, organizational activities

DefineDefine



Next Steps Key actions

Planned Lean Six Sigma Tool use

Questions to answer

Barrier/risk mitigation activities

Last Revised:

No. Description/RecommendationStatus

Open/Closed/HoldDue Date

Revised Due Date

Resp Comments / Resolution

12345678910

Lean Six Sigma Project Issue Log

DefineDefine



Define Tollgate Checklist Tollgate

ReviewTollgate Review

StopStopHas the team defined the opportunity from

both business and customer

perspectives?

Is this project important, i.e. has the project been chosen because it is in alignment with <Business Unit> goals and the strategic direction of the ‘business’?

What is the problem statement – detailing (what) is the problem, (when) was the problem first seen, (where) was is it seen, and what is the (magnitude or extent) of the problem. Is the problem measured in terms of Quality, Cycle Time or Cost Efficiency, not expected financial benefits? Ensure there is no mention or assumptions about causes and solutions.

Does a goal statement exist that defines the results expected to be achieved by the process, with reasonable and measurable targets? Is the goal developed for the “what” in the problem statement, thus measured in terms of Quality, Cycle Time or Cost Efficiency?

Does a financial business case exist, explaining the potential impact (i.e. measured in dollars) of the project on the business units, suppliers, external and business customers, etc.?

Is the project scope reasonable? Have constraints and key assumptions been identified? Have IT implications been addressed and coordinated with IT managers?

Who is on the team? Are they the right resources and has their required time commitment to the project been confirmed by Sponsor and Team?

What is the high level work plan? What are the key milestones (i.e. dates of tollgate reviews for DMAIC projects)? Who are the customers (business units, suppliers, external and business customers) for this process? What are their

requirements? Are they measurable? How were the requirements determined? Who are the key stakeholders? How will they be involved in the project? How will progress be communicated to

them? Do they agree to the project? What kinds of barriers/obstacles will need assistance to be removed? Has the development of a risk mitigation plan to

deal with the identified risks been developed?

DefineDefine



Sign Off

• I concur that the Define phase was successfully completed on MM/DD/YYYY

• I concur the project is ready to proceed to next phase: Measure

Enter Name Here Deployment Champion

Enter Name Here Financial Representative

Enter Name Here Green Belt/Black Belt

Enter Name Here Master Black Belt

Enter Name Here Sponsor / Process Owner

DefineDefine



Bonacorsi Consulting

Steven Bonacorsi is a Senior Master Black Belt instructor and coach. Steven Bonacorsi has trained hundreds of Master Black Belts, Black Belts, Green Belts, and Project Sponsors and Executive Leaders in Lean Six Sigma DMAIC and Design for Lean Six Sigma process improvement methodologies.

This Training Manual and all materials, procedures and systems herein contained or depicted (the "Manual"), are the sole and exclusive property of Bonacorsi Consulting, L.L.C.The contents hereof contain proprietary trade secrets that are the private and confidential property of Bonacorsi Consulting. Unauthorized use, disclosure, or reproduction of any kind of any material contained in this Manual is expressly prohibited. The contents hereof are to be returned immediately upon termination of any relationship or agreement giving user authorization to possess or use such information or materials. Any unauthorized or illegal use shall subject the user to all remedies, both legal and equitable, available to Bonacorsi Consulting. This Manual may be altered, amended or supplemented by Bonacorsi Consulting from time to time. In the event of any inconsistency or conflict between a provision in this Manual and any federal, provincial, state or local statute, regulation, order or other law, such law will supersede the conflicting or inconsistent provision(s) of this Manual in all properties subject to that law.

© 2006 by Bonacorsi Consulting, L.L.C. All Rights Reserved.

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Bonacorsi Consulting Define Master Template