Define Phase

Y = f(x1,x2,x3,...,xk)
Image Courtesy for entire presentation: Various authors of - Freepik.com Defining “Y”

Slide 1
https://www.youtube.com/
watch?v=m-RwLwBrvx0

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Define : What is the Problem?
→ Goals
→ Define Project Purpose
DMAIC
→ Create The Project Charter And Plan
→ Determine Scope And Goals DEFINE:
→ Identify Voice Of The Customer Define the problem / reason for the project and map the
value stream steps
→ Develop Project CTQs, CTQ Specification Table
→ Project Communication MEASURE:
Populate the data, measure and baseline current state
performance
→ Deliverables
→ Approved Project Charter ANALYZE:
Identify and confirm root causes
→ SIPOC
→ VOC (Voice of Customer) IMPROVE:
→ Critical To Quality (CTQ) Characteristics Generate and implement solutions and evaluate results

→ Kano Model CONTROL:

→ Focused Problem Statement. Maintain the gains
→ Define Phase Toll Gate Review
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2.1 Project Charter

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Project Charter
“You will not get anywhere if you don’t know where you are going”
→ Clarifies what is expected of the Team
→ Keeps the team aligned with key Business Priorities
→ Created by MBB / BB / GB with input from Champion Goal
Note the Project
Project Charter Charter is a living

1. Business Case Specific document and will

change over the
2. Problem Statement Measurable initial phases of the
project
3. Project scope
4. Goals Achievable
5. Team details
6. Project schedule
Relevant
7. Resources Timely
Slide 5
Project Charter Template

Problem Statement Goal Statement

What is the problem? What is the team trying to accomplish?

Where’s the pain? What is the current level of problem?

How big is the problem? (frequency / magnitude) What measurable target is the team working
towards?
What is the impact of the problem?
When is the project scheduled to be complete?

Project Scope Business Case / Financial Impact

Why is the project worth doing?

What does the project include? What is the financial impact of the project?
What are the consequences of not doing the project?
How does the project roll up to the Big Ys?
What is outside of the project scope? What is the impact on external customers?

Slide 6
Project Charter Template, cont.
Customer Project Team
Internal Customer:
Project champion:
External Customer:
Process owner:
Defects & Metrics BB team leader:
Defect (CTQ) Measurement: MBB mentor:
Defect Operational Definition: Core team members:
Baseline and its period: Extended team/stakeholders (if needed):

Milestones Approval

Phase Planned Date Actual Date Project Leader name and Sign:
Completed
Define Champion name and Sign:

Measure
MBB / BB Signature:
Analyze
Improve Financial Representative:
Control
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Problem Statement
→ Be Specific — Avoid terms which lend themselves to ambiguity, such
as “Quality,” “Responsiveness,” “Productivity,” etc.
→ Quantify The Problem — State explicitly When, How Much, How
Long, How Often, and What Direction (Magnitude / Trend).
→ State The Effect / Pain — State explicitly the Effect the Problem is
having on the Customer (how Customers are Affected or Impacted).
→ Should Not Imply A Cause — Avoid expressions such as “because
of,” “due to,” etc.
→ Should Not Imply A Solution — Avoid expressions such as “a lack
of,” “need to,” etc.
Slide 8
Problem Statement Example
Problem Statement: “Our customers are Problem Statement: “In the last 3 months
not happy with the delay in monthly credit 26% of the monthly credit card account
card account statement mailing” statement were delayed by 10 or more
days, due to which business had to waive
off $280,000 in late fee charges.”

Poorly defined problem statement – Well defined problem statement –

generic in nature. It does not highlight the specific and direct. Clearly brings out the
magnitude or the impact of the issue at magnitude of the problem and its
hand. consequences to the business.

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Goal Statement
Includes
→ Definition Of The Improvement
→ Direction Of Change (Reduce, Eliminate, Increase, Etc.)
→ Variable Of Interest (Time, Errors, Cost, Etc.)
→ Target

Does Not Include:

→ Blame
→ Presumed Cause
→ Presumed Solution

Slide 10
Goal Statement
→ Goal Statement: “We intend to reduce the no. of delayed credit card
statements.”

→ Poorly defined goal statement – generic in nature. The target and time
frame to achieve it have not been defined.

→ Goal Statement: “Reduce the percentage of delayed monthly credit card

account statement from 26% to 2% by 26th Nov 2020.”

→ Well defined goal statement – is specific, measurable and time bound.

Slide 11
Project Charter Example

Problem Statement Goal Statement

During last 2 years, a company is facing the Reduce Invoice processing time from 5 days to 2
problem of high invoice processing time. It is days by Dec-2021.
taking around 5 days to process an invoice which
is very high as it affect to the cashflow of the
company.

Project Scope Business Case / Financial Impact

Due to high invoice processing time i.e. 5 days, cash flow

Process in scope : Invoice making process gets affected. More processing time results in late payment
recovery from customers. Days outstanding in sales is as
Process out of scope: All other processes high as 60 day (based on past 6 months data) resulting in
high financial cost up to $ 10 Million.
Product in scope : A & B Category products
Product our of scope : C Category items If we reduce it up to 2 days, then $ 1 Million will be saved in
financial cost.

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Project Charter Example, cont.
Customer Project Team
Internal Customer: Account Department Project champion : Mr. John
External Customer: End Customer Process owner : Mr. Herry
BB team leader : Mr. Richard
Defects & Metrics
MBB mentor : -
Defect (CTQ) Measurement : Invoice Processing time
in days Core team members: Mr. Adam, Ms. Amy, Mr. Boni, Mr.
George
Defect Operational Definition: Time taken from request to
release of invoice is > 2 days is considered as defect. Extended team/stakeholders (if needed): Mr. Mathew (Stores)
Baseline and its period: 5 days (Jan-2020 to Jul-2020

Milestones Approval

Phase Date Planned Actual Date Project Leader name and Sign:

Define Aug 25, 2020 Aug 28, 2020

Champion name and Sign:
Measure Sep 15, 2020 Sep 20, 2020
Analyze Oct 10, 2020 Oct 08, 2020 MBB / BB Signature:
Improve Nov 15, 2020 Nov 20, 2020
Financial Representative:
Control Dec 31, 2016
Project
Dec 31, 2016
Charter is a Live Document
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Exercise of Project Charter
with Participant Example
One Example of Manufacturing

One Example of Service

Slide 14
2.2 SIPOC Map

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SIPOC – High Level Process
→ Constructing a SIPOC Map is the Step in understanding a Process.
→ SIPOC is a High Level Process Map showing the Flow from Supplier to Customer.
Both Supplier and Customer can be either Internal or External.
→ High-level view of a process helps to:
→ Define Project Boundaries (starting and ending points)
→ Describe where to collect data
Su Cu
pp st
lie o
rs m
Inputs Process Outputs er

Slide 16
SIPOC – Example

Suppliers Inputs Process Outputs Customers Requirements

Customer Information Delivered pizza Customer Complete call < 3 min
From customer like Order to cook < 2 min
Pizza type, size,
Qty. etc. Cash received Account Pizza delivered
in < 30 min
Warehouse/ Ingredients Pizza
depot & Other material Order Information on
booking & process time Management

Process/ Recipe
Delivery
Management

Utility like Phone

Telephone com
and cash register
& Other

Process Steps
Address
Call for Answer Confirm Order to
and Preparation Delivery
order phone order cook
phone

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Use of SIPOC Map
→ To identify key stakeholders

→ To identify process boundaries

→ Understand data collection points

→ Understand key customer requirements

→ Explain team members what we are working on

Slide 18
Exercise of SIPOC with
Participant Example
One Example of Manufacturing

One Example of Service

Slide 19
2.3 Voice of Customer
Collection and Analysis

Slide 20
Voices
Voice Of The Business (Alignment With Strategy)
→ What are our current business strategies and objectives?
→ What barriers exist that prevent us from achieving our objectives?
→ What targets are being missed?

Voice Of The customer / Customer (Critical Requirements)

→ What do customers complain about the most?
→ How is the market/industry evolving? Are we ready to adapt? If not, why not?
→ Do we need to grow in a new market where products, services, and processes don’t currently exist?
→ How can we better anticipate our customers’ needs?
→ What is getting in the way of our ability to increase customer satisfaction?

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It All Starts with the Customer
Customer Define • “I don’t want to pay for you to double check product,
Waste and Value can’t you get it right the first time?”

Customers feel the

• “Your competitor can provide this product in one day,
effects of Long Cycle
why does it take you five days?”
Times

• “Product from your different business units all look

Customers feel the different.”
Variation • “Sometimes you deliver with no defects, sometimes
with defects.”

Customers define • “Product was delivered late”

Defects • “Product was having defects”
Slide 22
 Measuring Process Performance based on VOC
→ Customers want their Pizza
delivered fast!

→ Guarantee = “30 minutes or less”

→ What if we measured performance and found an average delivery time

of 23.5 minutes?
→ On-time performance is great, right?
→ Our customers must be happy with us, right?

Slide 23
Using VOC to Measure Performance
Processes CTQ
Measure process performance as compared
to VOC Deliver within 30
Min
35

Average = 23.5 Min

30
Goal = <30 Min
# of Responses 25

20

15

10

Response Time (in Min)

Customers Don’t Experience The Average, Customers Experience The Variation.

Slide 24
 VOC / VOB Examples
→ Identify each of the following as VOC or VOB
→ On–Time Delivery VOC

→ Accuracy of Billing Statements VOC

→ Time to Repair VOB VOC

→ Accuracy of Purchase Order VOB

→ Rework at Turning VOB

→ Cycle Time for Assembly VOB

→ Boiler Efficiency VOB

→ Number of Customer Complaints VOC

Slide 25
VOC Data Collection
Direct Relationship Indirect Relationship
• Relatively few customers • Relatively many customers
• Direct business relationship • Distributors and retailers interface with
customers
Proactive
Proactive
• Customer meetings
• Surveys
• Customer representatives
• Focus groups
• Benchmarking
• Market research
Reactive
Reactive
• Contract, Order, Specifications, Queries
• Customer/dealer complaints
• Customer complaints
• Customer service feedback
• Warranty and repair data
• Regulator/NGO complaints
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Two Types of VOC Data Collection
Reactive Data Proactive Data
• The customer comes to us • We go to the customer

• Tends to only include Negatives / Complaints • Can include positives as well as negatives

• Focuses on current offerings, not future • Can address future offerings as well as current
• Tends to require new data collection
• Data that may be available right now
• Examples
• Examples
– Customer Surveys
– Customer Complaints
– Focus Groups
– Tech Support Calls – Interviews
– Product Returns – Direct Observation
– Comment Cards
– Contested Invoices
– Market Research
– Data Inquiries – Benchmarking

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Proactive VOC Data Collection
→ Focus on listening / collecting, not disseminating information
→ Keep an open mind – don’t go in with biases
→ Clearly identify all customers
→ Define the purpose of VOC collection and how data will be used
→ Prepare for and practice your collection method
→ Methods
→ Interview
→ Focus groups
→ Survey
→ Listen actively

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Proactive Methods : Interviews
Individual Interviews
What is it One-on-one meeting with customer
Best for Higher-level people
Small customer base
Current knowledge of customer needs is low
Tips Phone OK
In-person better to read body language

Pre-work List of unbiased, open-ended, simply worded questions

Logistics – time, place, etc

Pros Interviews allow for probing of customer needs

Customers feel listened to
Able to add questions, probe deeper on-the-fly
Cons Time-consuming if large customer base

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Proactive Methods : Focus Groups
Focus Groups
What is it Small group discussion (5-10 participants)
Best for Group of similar customers
Current knowledge of customer needs is low-medium

Tips Avoid mix of levels

Avoid phone – difficult to ensure all participate

Pre-work List of unbiased, open-ended, simply worded questions

Logistics – time, place, etc
Identify strong facilitator
Pros Reach a greater number of customers personally
Check if VOC is consistent across customers
Build synergy/consensus among participants
Cons Individual participants can dominate discussion

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Proactive Methods : Surveys
Surveys
What is it Pre-set list of questions that customer is requested to answer
Best for Large customer base
Current knowledge of customer needs is medium-high
Tips Utilize technology – iShare, Survey Monkey
Consider prizes to drive response rate
Include open-ends as appropriate
Include other and N/A choices
Pre-work List of questions
Demographic data needs
Measurement scale
How to code open-ends
Pros Reach a very broad audience
More likely to get statistical sample
Can be more quantitative in nature
Cons Must anticipate all questions
Potential bias, especially if low response rate
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2.4 Affinity Diagram

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Affinity Diagram
For Pinpointing the Problem in a Chaotic Situation and Generating Solution
Strategies
● Gathers large amounts of intertwined verbal data (ideas, opinions, issues)
● Organizes the data into groups based on natural relationship
● Makes it feasible for further analysis and to find a solution to the problem.

Topic
Affinity Statement Affinity Statement Affinity Statement
Data Card Data Card Data Card Data Card Data Card Data Card
Data Card Data Card Data Card Data Card Data Card Data Card
Data Card Data Card
Affinity Statement
Data Card Data Card
Data Card

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Affinity Diagram

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Advantages of Affinity Diagram
● Facilitates breakthrough thinking and stimulate fresh ideas
● Permits the problem to be pinned down accurately
● Ensures everyone clearly recognizes the problem
● Incorporates opinions of entire group
● Fosters team spirit
● Raises everyone’s level of awareness
● Spurs to the group into action

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Constructing Affinity Diagram
● Select a topic
● Collect verbal data by brainstorming
● Discuss info collected until everyone understands it thoroughly
● Write each item on separate data card
● Spread out all cards on table
● Move data cards into groups of similar themes (natural affinity for each other)
● Combine statements on data cards to new Affinity statement
● Make new card with Affinity statement
● Continue to combine until less than 5 groups
● Lay the groups outs, keeping the affinity clusters together
● Next, complete the diagram

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2.5 CTQ (Critical To
Quality)

Slide 37
CTQ Characteristics
→ Critical requirements on process outputs and other critical process
performance measures are called CTQs.

VOC
CTC (Critical
(Customer
to Customer)
Need) CTQ (Critical
VOB to Quality)
CTB (Critical
(Business
to Business)
Need)

Slide 38
CTQ derived from VOC Example
Manufacturing

Time from
“Your car turning of Engine
VOC / takes too Engine key to start time
CTQ Measure Defect
VOB long a time Start Time sustained > three
to start” idle (in seconds
seconds

Service

“Do you have

more than one Number of Any call
VOC / Prompt call
Measure Defect
person CTQ attendance
rings before answered after
VOB answering greeting three rings
phone calls?”

Slide 39
CTQ Target and Specification Table
→ Once you identify the CTQ and Components of CTQ Table
how to Measure (Operational CTQ Cycle time to resolve client
inquiries
Definition) it you need to identify
Specific Measure From client call to client reply
the target and specification (Operational confirmation (business days)
Definition)
limits based on the customer’s
Long term Target 3 Days
perspective
Current Specification 5 Days
→ Anything outside the Limits

specification limits is a defect Defect Definition Any resolution taking > 5 days

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2.6 Kano Model

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Kano Model Understanding
Satisfied

Infotainment Performance
System needs
Delighter
needs

Mileage
Not Fully
implemented implemented

Basic
Safety needs

Not satisfied
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2.7 Define Phase Tollgate
Review

Slide 43
Define Phase Toll Gate Review

Approved Project
VOC Collection
• Purpose of the project Charter • Deriving the Key • What to be measured
Process Step and improved
• Document with project • Input, Supplier, Output • What is important to
related information and Key Customers Customer / Business
• How do you ensure
that you have covered
them all?
SIPOC / High CTQ Tree &
Business Case
Level VSM Kano Model

Slide 44
Project Communication
• To establish • Minutes of • Person
project meetings, Action responsible
communication items, Status,
Reviews,
success stories

Objective What Who

• Time and • Electronic mail,

frequency Phone,
Presentation,
Video conference

When How

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Define Phase Case Study

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 2.8 Define Phase
Assignment for Participants

Slide 47
Define Phase Assignment
Brainstorm and Discuss with your Sr. Leadership Team and find out a
current Business Problem in your Organization (Preferably in your area).
1) Write Down the Business Case in Objective Term.
2) Validate your Business Case by Collecting VOC / VOB
3) Create Project Charter of your Project
4) Create the SIPOC or High Level VSM
5) If the VOC / VOB is very generic then create Affinity Diagram to group them.
6) Create CTQ Tree and CTQ Specification Table
7) Use Kano Model to Group the CTQs into Basic, Performance and Delighter
Needs

Slide 48
Thank You!!!

Slide 49