Work out session Srastiucl Complete the project till choosing hypothesis and Minitab sessionNEM UCa yan Tuts] WHAT: auantitying the opportunity is all about the six sigma team visiting the benefits to be accrued from the project. The index at this point of time would comprise of both hard and soft gains (with a $ figure attached to hard gains) however no cost factors are involved at this time WHY: To provide the financial rationale of continuing the project, and to gauge the allowable spending on the specific solution (s) that will be identified in improve. It is a key milestone to be covered before the analyse tollgate WHEN: usualy after the verification of the vital few root causes Quantify the opportunity Costibenefit analysis * Done in the analyse phase + Done in the improve stage + Itis not for a specific solution + Calculated for a specific solution + Considers only gross numbers + Talks about net gains + Covers the entire process as the scope + Scope: A portion of the process Te Brainstorming Pilot planning TRIZ Verification of results Criteria matrix Nominal Group Technique Solution selection tools | 2 earn l 4 eer Error proofing (Poka yoke) Cost benefit analysis FMEAImprove: Steps ee en ry ee etal 2) Brainstorming Data analysis (DOE) Select best idea Fiter wae °, Refine the Idea inh Error proofing/F MEA | Test the new idea Pilot | ; * oT tra, nn Rainn ag ser ttn tg mn et Cn hss 182 BI Peem CNR NN atu TT Atheory of problem solving based on the recognition of the power of psychological inertia and the importance of having a process to move problem solving activities beyond this inertia by identifying contradictions (barriers to an ideal solution) and providing specific tools and strategies for eliminating them Genrikh Altshuller (developer of TRIZ) screened thousands of patents looking for inventive problems and how they were solved. Only 40,000 had inventive ‘solutions; the rest were straightforward improvements. Altshuller categorised these patents by identifying the problem-solving process that had been used repeatedly. He found that the problems had been solved using one of forty inventive principles. seunes to enn tnt on some 199iP Cut) Overcoming psychological inertia + Psychological inertia is the sum total of an individual's personal bias, previous experience and technological knowledge. When challenged with a problem, the solution path will be constrained by the individual's psychological inertia. Psychological inertia predisposes not only the solution path, but the types of solutions as well, Psychological inertia defines the boundaries of the solution space; ifthe ideal solution for a problem demands ‘out-of- the-box’ thinking, psychological inertia confines the thought process to the conventional box Ria CCL Sc) Inventive principles are rules for system transformations. Each principle is intended to Two of the forty principles eliminate a single contradiction ; fl ' or several contradictions. Also, are listed in next page with these principles can be used ; simply to stimulate, or initiate, accompanying service the thought process to create the ideal solution to a problem. examples. They can be used for Apply selected inventive principles to your inspiration in conceptual contradiction/problem to develop innovative design, directly utilised in the solutions case-based design or used in various forms of analogical reasoning.Uae CRC TORE at A) Divide an object into independent parts + Divide an organization into diferent product centers + Use a work breakdown structure fora large project + Franchise objects + Strengthiweakness/opportunitythreat (SWOT) analysis, + Sectional furniture B) Make an object + Flexible pensions. sy to dissemble + Use of temporary workers on short-term projects + Modular furitureoffices ) Increase the degree of fragmentation + Empowerment ~ segmentation of decision making + Distance learning + Virtual officestremote working ‘A) Use harmful factors to achieve a positive effect + Recast an attack on you as an attack on a problem * Collect information to understand the harm, then formulate a positive action to remove it + Making a fuss over customers who have experienced ‘a problem with your goods or services 8) Eliminate the primary harmful action by adding it to another harmful action to resolve the problem + Eliminate the fear of change by introducing fear of competition + Puta problem person on an assignmentin another area where he/she can do well and not be a problem in the original group cnt nent stone ea Cain ME anh e195 Structured brainstorming + Smooth fiow of ideas + Everyone has an opportunity to express opinions + Efficient process in terms of idea generation + Less creative in approach Unstructured brainstorming + Smooth + Random flow of ideas + All opinions may not be captured + Lesser number of ideas generated + Effective process for creative ideas 2, pn Pan att HPS et ee win OM aa the PME Mens 197CPPTUS urate CeunT [Ts + Structured brainstorming: This is a process in which the ideas are generated in a systematic method by moving from one person to another and obtaining an idea. The person who does not wish to provide an idea, passes. The process is continued until each participant passes and the facilitator determines no fresh ideas are being generated. As with all forms of brainstorming, the ideas are then taken up for discussion At the end discard any ideas that are similar and debate on each idea to come up with the finalised list of possible solutions + Unstructured brainstorming: In this form of brainstorming, ideas are generated randomly and there is no need to pass. The solutions are discussed freely and can be proposed at any time. This type of brainstorming process is effective when the representation of each of the diverse groups involved in the discussion is large. However, the facilitator should be careful that even in this randomized discussion with large representations, ideas may not be captured completely Pree Cutan ate seed “Must be” for all brainstorming forms. eer Our uo Teen Piet gieeeh eae ene ree A) San LD)era eG ein ge Channeling Anti solution Structured approach to brainstorm on Structured approach to brainstorm on specific category of solutions the opposite of the objectives of the available to the team discussion ERE eaten eerste ks me pm ct an copiONEm. xt 200 PM eR a) Analogy Brain writing Brainstorm on ideas on related topic Build on ideas written on a sheet of to unblock the thought process paper randomly distributed amidst the groupUIC Zune} Channeling: This form of brainstorming entails channeling of thoughts of the participants similar to the discussion in fishbone diagram. The discussion revolves on specific streamisection of solution. E.g while discussion on methods to improve the sales of soaps, potential solutions can be channeled into: Improvements related to the packaging, fragrance, cutting of costs or _Aistribution system for the product _ Antisolution: Here the objective of the team is reversed to exactly the opposite of what is to be determined. E.g, In an effort to improve the training programme, the team can debate about the ‘ways in which the training programme can be worsened. The solutions are opposite of what is determined during the discussion Analogy: Analogy form of brainstorming encompasses a discussion on a process/product that is similar to the one which is being improved. E.g. Instead of discussing on ‘what are ways to improve the productivity of call center associates for an insurance customer service call center, the team can discuss opinions on productivity of associates in the customer service call center for automobile leasing’. Make associations at the end of the discussion Brain writing: Written ideas are exchanged in this process. Each person who receives a written idea tries to expand on it or adds a totally new idea to it. The pieces of paper are rotated and a collections of ideas or solutions are then debated and prioritised. This is used when the team members are unknown to each other ETc coll) Pay off matrix I Screening against ‘Must Be’ ———_ 2] ey Compliance, poicis and a a fone 2 ] customer CFOs a | Business Cras Cia ———— | Effort ‘ Solutions for further iacussions NI3 voting Criteria based matrix ETS stanton cotta | ARH | Bat, som.2 rere = Ease of Use + Inter ate avaiabiy Rationalize/justiyireject ‘lemenmesror creel solutions + Information Real ire + uo escalation of Uneoxevos abu + Fier and regulated ie peaSolution selection Pay-off matrix: After the possible solutions are generated, they can be assigned to different quadrants of the pay off matrix. The ideas which are low on benefits, are rejected. The discussion is then focussed on the high effortihigh benefits and these are rationalised for implementation. Some of the solutions in this quadrant are so prohibitively expensive that they can be eliminated without further analysis. Caution needs to be maintained when eliminating potential solutions from this quadrant Screening against ‘Must be’ criteria: Company policies, local laws and social considerations are extremely important before proceeding further on any solution. Finally, the extent to which the customer ctgs of the project are satisfied is a key consideration for selection (use kano model to evaluate expected extent of satisfaction generated) NI3 voting: The key consideration in this form is that all rejected solutions should be justified Criteria matrix: - Please refer to the next slide 204 _, Where to use CBM + More than a few criteria for solution selection + Solutions scoring differently under each criteria |. The weight for each criteria differs How to use CBM c. Identify criteria and assign weightage + The team members to give votes to each idea + The votes are then multiplied with the weights of the criteria established for selection + The total scores obtained at the bottom of (S 7 __ te solution are used to select the sameN GT: Nominal Group Technique What is the best method to reduce cost per transaction? + Simplify Application process + Automation + Employ Six Sigma + Consolidate sites + Implement Web Services + Reduce Workforce Ve neg enti ene nt nN ern me ih KG aid ape US erin e208 Simplify Application process & consolidate Site Error proofing Error free designs or processes Eliminate the possibility of setting the xs beyond the limits Warns operators before the xs move to the outside limit so that the preventive action can be taken Can also be used in conjunction with the risk management or SPC The opportunity for error needs to be minimized or eliminated Get it right during process design.a Definition: Failure mode and effects analysis is a tool to identify the relevant importance of possible failure of the process/solution and establish clear mitigation strategy associated with the risks Principle of FMEA Impact of any failure on a process is not only severity of the failure but also the frequency of occurrence and the ability of the control mechanism to detect the failure A team activity with the subject matter experts...! Objective: + Addressing rational concerns that have significant affect on the performance of the proposed solution + To evolve a consensus on the recommended corrective actions and procedures to follow. Suggestions for completion of the activity in time: + It would be best to address concems from a process perspective rather than have a business contingency plan activity which would affect the entire business (E.g. earthquake, fires, natural calamities, geo-political exigencies, power back ups etc.) + Each individual SME/functional expert would position the argument. More often than not the suggestions/action plans would come from him/her or through a judicious discussion within the group. + The process owner takes the final call on the impact except when issue is related toa legal or a compliance issue.Sut s FMEA is carried out on the process/product being introduced or redesigned Calculate the risk priority number by multiplying the scores associated with severity, occurrence and detection-revisit frequently to update FMEA is a live document oo a cc recommended | ** cod | ros SEER Ep meet mortem snminiomtntne ait me mamma ane er aM Earn an RPN = Severity x occurrence x detection Bad 10 injure a customer or mpoyee © Beilega 8 Render producto service unfit for use 7 Cause extreme customer isststacton & Reset inpartalmatuncton 5 Cause alos ofperomance whic key to result in a complaint, 4 Cause minor pectomance loss 3. Gause aminor nuisance but be overcome wth no perfomance loss Good 2 Beunnotced and have nly minor elect on performance 1. Beunnoticed and not tet the perfomance More the seventy, higheris the rating 2g wnat heen nvm A na ten coment EsaETM Eure | RPN = severity x occurrence x detection Cote Bad ec 10 More than once per day > 30% 9 Once every 34 days <30% 8 Once per week 5% 7 Once per month faz 51% & —_Onca.every Smonths 5 Onceevery Smonths 51 Per 10,000 4 Once per year ‘<6 Per 10,000 3 Once every +2 ye 6Permition Good 2 Once every 38 years 53 Per 10 milion ‘Once every 6-100 years 2 Per Bition More often it occurs, higher i the rating (28040, mean Resn Punto ene mate PD ho Ligh Ie nd wh US enn Ce ME Mah eae 212 Calculating RPN RPN = severity x occurrence x detection Bad 40 Defect caused by failures not detectable © Occasional uns ae checked for detect 8 Unis are aystomaticay sampled and inepected 7 Alunite are manual inspected 6 5 ‘ 3 2 Units are manvaly inspected wih mistake-prooing modifications Process is monitored (SPC) and manually inspected ‘SPC is used with an immediate reaction to out-of-control contions SPC as above wih 100% inspection surrounding out - contro conditions ‘Alun are automaticaly inspected Defects obvious and can be kept rom affecting the customer Good Lower the abilty to detect, higher isthe ratingTesting for solutions Why test solutions + Confirm to potential solution * Obtain feedback and buy-in for proposal + Opportunity for refining solution How to test solutions + Small scale experimentation-piloting + Modeling-physical models + Simulation- computer models BetUS Create A data collection plan and Monitor Activities For data Consistency and stability Verify that the process has improved-process capability, hypothesis testing for evaluating statistical significance of the old and the improved process ery ees Puce NVI Peasy eee a Une cet Raa or)ace Reread + Savings + Incremental revenue + Interest cost and income * Cash flow + Reduced workforce CBA Hard Gains Cost Hoade Vendor Trainer Cost, 250,000 Tang 30,000 (Team Suppor ane Facies 20,000 augment "000 ‘Stationary and Manas 18000 GB Examination 50.000 Tota Cont 70.408 Estimated annual cost Cost wih vendor PerTraining ‘370,448 ra Trang per veer 446 399 | I ‘Cost of creating the training manual Man Days Spent ‘Aveiage por day cost » 2222 Savings por year e.067 ‘Assurptons 1. Hypothetcal Coss assumed 2 Recuring cost of uegrasing te content is INR 86,687 — "Ap Figues 9 INR ae gina et a a CU Ue ae ee cee ete Intangible benefits | + Customer retention + Improved VOB/VOC + Ease of work + Better governance + Trainings customized to the need of the employees + Calendar and duration ‘ast with Quality Team of the training “4493, coordi 1532000 | eccoreang ta) ] organizations need Tota Cost incured Beret oftanng toh ve Emo a vendorControl EE implement solution neseilig ls Documentation Communication of learning Project closure Stakeholder analysis Implementation elements 5 fee eo ceL el Process management chart Process documentation Selection of control charts, Interpreting control charts Response plan olution Pr Penne ec Pee cose tant Marl Eg improvements an | | Pa COR mea teu a Cu Ra efforts of the project team are not written offWhat to control? »> Input measures mm Output (xs) measures | > Process measures » mre means Monitoring = + points. + At the barest minimum, measuré CTQs + Strive to measure the critical Xs to provide chances to make corrections + Install the appropriate data collection plan + Audit appropriately + Early waming system prevent $$ impact (rework reduction) zt ttn ett tO a pn me ns ne me eNO os 229 Ce Lely Elements of good implementation planning: * Objectives + Incorporation of pilot learning + Resources and time frame + Influence strategy + Control plan + Documentation eum m nants Poewe sme te XH et na ew FMD en Cane PUD er Sate 234Teer) Quality of solution Acceptance of solution x Effectiveness of implemented solution INC EA Key constituents map I Stakeholders analysis Project Impact Profile _ldentify stake holders to be addressed first Identity stakeholder support profile — Influence strategy TPC analysis, teeorconcam | tty | sraagy causeet | examples | ranking senor ate Teste enor enone Pica! sien aman canal I Determine influence strategy Identity causes for stakeholder resistance et 9g nae ms vent orate min PC te nga ener estan EMO Meni Coin ENG Sete 228ENTER a) Key constituents map: This tool is used for mapping out the size of the stakeholder team that would be affected by the change that is going to be implemented. The tool helps the team identify what should be the right composition of the implementation team (proportional to the key constituents map sections). It also helps determine (based on size) the stakeholder that needs to be addressed first Stakeholder analysis: Stakeholder analysis helps provide an insight on the extent of support/resistance that should be expected by the project team during the implementation of the project. It also establishes the requirements for successful implementation for the project team. Using this information the team would be able to determine which key stakeholders need to be influenced or sought support from during the implementation § rere sans an APUG nl Cnt PND Nima ones 4 = eure tong : > lal Project management tools Successful Implementation etn PUG ain Crp YPUS somes 225,Why control? Process control is essential to prevent the loss of gains over a period of time Detect the out of control state of processes and determine the appropriate actions Control system incorporates risk management, SPC, measurement and audit plans, response plans, documentation and ownership 228 Control charts + Monitor changes in the Xs and detect changes that are due to special causes + Used when the Xs cannot be mistake proofed or need to be controlled for inherent variationsControl charts Common Cause/Random Variation Upper Control Limit sost-8087 Has Average -s08t=2810 Value/Measurement Axis '——+ Lower Control Limit Time/Sequence Axis + Select process, measures to be charted Establish data collection and sampling plan Calculate the statistics Plot control charts(two charts for continuous data and one for discrete data) Cirle mom CCl) Common causes Special causes istake 1 tg Focus on systematic Tampering Common causes oe ce (increases variation) Ss € 3 s a Mistake 2 Investigate special § Goce |, Underreacting causes for possible g (missed prevention) quick-fixes = Low High In Our Control (22081040 ie euismod np EPD ,Anes 208Selecting control charts ominous ———————— Me rod cine caret) lee ! Ginn ae | vom | rede inaviduas ard moving | ae rs ! : : : Manas ohare | |7anert || “chore p-chart | | np chart | Cechart | U-chart exc ctegmeettnme teeta ie ern eee ee Selecting control charts randomly sample 100 responses from their outgoing calls. The number of positive responses is plotted on the chart The technical support area is monitoring average response time on help requests. Each hour five calls are sampled team is monitoring the number of applications received each day with incomplete fields. All applications are being audited. Each day 200-250 applications are received ‘A team is monitoring the cycle time for the underwriters’ loan decisions. The data comes in slowy; that is, one loan is completed daily. ‘Ateam is tracking the number of fields left blank on an application. Each day a sample of 100 applications is audited. ‘Another team is doing the same thing as the team in example 5 (counting the number of fields left blank on an application), only they are looking at all the applications that come in daily. Each day 50-100 applications are turned in The team is tracking the number of abandoned calls to a customer call center in a shift. Each shift takes from 200-400 calls beso ‘Ateam from marketing is tracking response rates (yes, no) on telemarketing calls. Each day theya Ceara ejected toms based o consant Sansle Sze Pept ts based ro Sane sas po Meet ie ee | p-Chart c-Chart, Types of control charts | Hum Chart for aah bog of aw materi ee apo |= | Individuals Chats forthe eh bap of tate re [ Dar Chat a tt | Yoais chan or gett i Se SO hk > ey i ‘50,0 mtn tt ae tis A mtg etn nl coe. 38Ext: You work at an automobile engine assembly plant. One of the parts, a camshaft, must be 600 mm_ +2.mm long to meet engineering specifications. There has been a chronic problem with camshaft length being out of specification, which causes poor-‘iting assemblies, resulting in high scrap and rework rates ‘Your supervisor wants to run control chart to monitor this characteristic, so for a month, you collect a total ‘of 100 observations (20 samples of 5 camshafts each) from all the camshafts used at the plant, and 100 ‘observations from each of your suppliers x2: You are conducting a study on the blood glucose levels of nine patients who are on strict diets and exercise routines. To monitor the mean and standard deviation of the blood glucose levels of your Patients, create a control chart. You take a blood glucose reading every day for each patient for 20 days Ex3: As the distribution manager at a limestone quarry, you want to monitor the weight {in pounds) and variation in the 45 batches of limestone that are shipped weekly to an important client Each batch should weigh approximately 930 pounds Ex4: Suppose you work in a plant that manufactures picture tubes for televisions, For each lot, you pull some of the tubes and do a visual inspection. If a tube has scratches on the inside, you reject it. Ifa lot has too many rejects, you do a 100 per cent inspection on that lot dn eso Paresh mene FHS ena teese be re Mun wh KPA Coa ND ann, HB 734 Srey x5: You work in a toy manufacturing company and your job is to inspect the number of defective bicycle tires. You inspect 200 sampies in each lot and then decide to create a control chart to monitor the number of defectives. To make the chart easier to present at the next staff meeting, you decide to split the chart by every 10 inspection fots Ex6: Suppose you work for a linen manufacturer. Each 100 square yards of fabric can contain a certain number of blemishes before itis rejected. For quality purposes, you want to track the number of blemishes per 100 square yards over a period of several days, to see if your process is behaving predictably Ex7: As production manager of a toy manufacturing company, you want to monitor the number of defects per unit of motorized toy cars. You inspect 20 units of toys and create a control chart to examine the ‘number of defects in each unit of toys eS md rb es ahh PUG Coen ENS ae 25Project closure Essentials of project closure: + Document and communicate results + Recommend transiation opportunities + Evaluate team success-results, process and relationships + Celebrate + Disband project team Syrah sero tn PAG mio oe et atime Een. Outs 238 te eRe eC New special cause variations identified DolT uly + Deployment hart Eur What, who, where of the > ms eT lcl Zilla) Process tivity details + Key measures > + Standards + Measurement and process What, who, when, how of data collection and measurements een Maistlachel win! how of + Procedure for adjustment ct action upon process failure D> - containment + Procedure for improvement Ongoing auditing 20g ner Pi sm APE ein aPC ma st 237Process management system Dp ay DLT) eo ccs ] Presi or | Proseaue or Deatomant | Delasoniey | MHP Monioing | _Metroator ac ond ouinat conanmert | cee | proms onc ‘oa orcas | veomdng cate i | | eye lef) Documentation process is an activity that help ensure that the knowledge gained by the project team is: Implemented successfully Retained by the business Used to standardize the business processes + Future resources can be trained easily + Improvements can be shared and translated across + Institutionalized Documentation Levels: Process Flowcharts Procedures Checklist Management ‘System creasing level of de A Core Process ‘Sub Process mira inne crpemn WPS, 2308s 299Work out session > » Work out session SummaryNitesh Jain - KPMG [email protected] ‘wwnw.in.kpmg.com (©2016 KONG, mn ndan Rogateed Parmertp and a member em al he KPUG ‘eter of nsepencen mera Ts aad wih KEMS inetd Cooperate {PRPNG irtamatona). a Suis ety. A igfsrexerved, “Tha KPMG name, ogo ar rogers ademas or taderaris of KPMG Irematonl Cooperative KPMG mmatona’)