Define Phase Jimmie Carr OPERMGT 380 Boise State University

Overview  Define Phase defined  Define Tollgates  Companies using the Define Phase  An exercise opportunity  Summary

Define Phase Defined  Project charter is created  Voice of the Customer (VOC)  High-Level Map of current process is created  Project Team assembled

Project Charter Includes  The business case  The problem statement  Project scope  Goals statement  Milestones  Roles and responsibilities of the project team

Project Charter Do’s  Make problem statement specific  Focus on observable symptoms  Use Charter to set direction, goals  Address project questions early

Project Charter Don’ts  Assign blame in problem statement  Set non-obtainable goals  Make the charter wordy

Business Case  Given to the team by the Leadership Council  Gives a broad definition of the issue  Gives rationale why this project is a key business priority  Compelling reason to commit resources

Problem Statement  Concise statement of the problem  Under what circumstances does problem occur  Extent of problem  Impact of problem  Opportunity if problem is eliminated

Problem Statement Form

Project Scope  An important element in the charter  Sets boundaries on what’s included/excluded  Seek a balance  Viewed as a contract to avoid scope creep

Goal Statement  Specific  Measurable  Attainable  Relevant  Time bound

Milestones  Indicates when and where the team should be in the process  Set limits for other steps in DMAIC process

Voice of the Customer (VOC)  Recipient of product/service targeted for improvement  Delivery time  Accuracy

High-Level Process Map  Name the process  Establish start and stop points  Determine the output  Determine the customers  Determine the supplier  Determine the input  Agree on five to seven high level steps

Symbols Used to Create A Process Map  Start/stop of a Process  Decision point  Step in the Process  Direction in the Process

Project Team  Champion (process owner) -strategically guides team -strategically guides team -assist in picking the team -assist in picking the team  Team Leader-Black Belt  Team Members  Master Black Belt

Tollgates  Steps of the Define Phase  Similar to being on a turnpike  Stop to pay toll  Proceed to the next tollgate  Continue on the highway of quality  Improve sigma performance

General Electric (GE)  2000 was a record breaking year  Revenue rose 16% to $129.9 billion-a record  75% of GE’s top businesses posted double- digit earning increases  Six Sigma turned the company’s focus from inside to outside

ITT  Uses Value Based Six Sigma (VBSS)  2001-$135 million in cost savings  Linked VBSS to the company’s strategic plan  Go for quick wins  Match project and resources

Define Phase Do’s  Give equal attention to Service and Output requirements  Create clear goals and objectives  Measurable requirements are essential to understanding your customers

Define Phase Don’ts  Fail to measure your performance against customer requirements  Close your mind to new information  Make new requirements your standard operating procedures (SOP)

Training Exercise Break down into 3-5 people per group to determine there are issues within your organization that you could use the Define Phase on. Break down into 3-5 people per group to determine there are issues within your organization that you could use the Define Phase on.  How long did the problem exist?  How did the problem begin?  Will we need a project team to work on the problem?  What will be the savings if a solution is found?  What will be the damage if a solution isn’t found?

Summary  Define Phase is structured  Efficient and effective way of achieving a difficult undertaking  Higher consistency of outcomes  Project results as sound

Applying the Change The most general lesson to be learned from the more successful cases is that the change process goes through a series of phases that, in total, usually require a considerable length of time. Skipping steps creates only the illusion of speed and never produces a satisfying result. …But just as a relatively simple vision is needed to guide people through a major change, so a vision of the change process can reduce the error rate. And fewer errors can spell the difference between success and failure. The most general lesson to be learned from the more successful cases is that the change process goes through a series of phases that, in total, usually require a considerable length of time. Skipping steps creates only the illusion of speed and never produces a satisfying result. …But just as a relatively simple vision is needed to guide people through a major change, so a vision of the change process can reduce the error rate. And fewer errors can spell the difference between success and failure James Kotter, “Why Transformation Efforts Fail,” Harvard Business Review, March-April, 1995

Bibliography  Pande, Peter S., Neuman, Robert P., and Cavanagh, Roland R. The Six Sigma Way, Team Fieldbook, Sigma Way, Team Fieldbook,  Pande, Peter S., Neuman, Robert P., and Cavanagh, Roland R. The Six Sigma Way, Sigma Way,  Ehrlich, Betsi Harris, Transactional Six Sigma and Loan Servicing; Leveraging Manufacturing Concepts to Achieve World-Class Service, Leveraging Manufacturing Concepts to Achieve World-Class Service,  Eckes, George, Six Sigma for Everyone, 2003

Bibliography (cont)  Welch, John, GE Annual 2000 Letter  McClenahen, John, Industry Week,Publication 4/1/02