The document discusses Lean Six Sigma concepts including defining value-adding work, types of waste, and key components of a Lean Six Sigma project charter. It provides examples of value-adding versus non-value adding processes and covers the seven most common types of waste. Additionally, it explains that a project charter helps clarify the focus and importance of a project and typically includes elements such as the problem statement, goals, scope, team, timeline and deliverables. The document is intended for an instructional session on Lean Six Sigma fundamentals.

1. European Students of Industrial Engineering and Management
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Initiating a LSS Project - Let’s get started!
for publication
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It’s Feedback time!
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In this session we will be covering three topics
3
Project charter SIPOC
Defining
value-adding
work in processes

4. European Students of Industrial Engineering and Management
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Let’s begin our journey by thinking when
should we use the DMAIC cycle…
What do you think?
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5. European Students of Industrial Engineering and Management
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The DMAIC cycle is often at its best when...
5
Just do it! Are you sure?
Lean Six SigmaKaizen Blitz
Known
solution
Unknown
solution
Known
root cause
Unknown
root cause

6. European Students of Industrial Engineering and Management
www.estiem.org
6
Just do it! Are you sure?
Lean Six SigmaKaizen Blitz
Known
solution
Unknown
solution
Known
root cause
Unknown
root cause
The DMAIC cycle is often at its best when...

7. European Students of Industrial Engineering and Management
www.estiem.org
The DMAIC cycle is often at its best when...
7
Just do it! Are you sure?
Lean Six SigmaKaizen Blitz
Known
solution
Unknown
solution
Known
root cause
Unknown
root cause

8. European Students of Industrial Engineering and Management
www.estiem.org
The DMAIC cycle is often at its best when...
8
Just do it! Are you sure?
Lean Six SigmaKaizen Blitz
Known
solution
Unknown
solution
Known
root cause
Unknown
root cause

9. European Students of Industrial Engineering and Management
www.estiem.org
The DMAIC cycle is often at its best when
the solution and the root cause are unknown
9
Just do it! Are you sure?
Lean Six SigmaKaizen Blitz
Known
solution
Unknown
solution
Known
root cause
Unknown
root cause

10. European Students of Industrial Engineering and Management
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Lean Six Sigma tools are also
widely applicable outside DMAIC
For example at GE, all managers were taught
to be Six Sigma Black Belts …
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Let’s talk about the key components of the
Define phase
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Project Charter SIPOC
Defining
value-adding
work in processes

12. European Students of Industrial Engineering and Management
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Lean Six Sigma projects often start with
creating a project charter in the Define phase
What is a project charter?
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One way to look at the project charter:
1) the basic information about the project
2) communication tool inside the organization
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The elements of the project charter
often include the following:
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Problem
statement
Goals /
objectives
Project scope
Project teamTimeline Deliverables
Leveraging
opportunities
Key process
measurement

15. European Students of Industrial Engineering and Management
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The elements of the project charter often
include the following:
15
Problem
statement
Goals /
objectives
Project scope
Project teamTimeline Deliverables
Leveraging
opportunities
Key process
measurement

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What is the purpose of the
problem statement?
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17. European Students of Industrial Engineering and Management
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The problem statement helps to …
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Clarify the focus
of the project
inside the team
Communicate the
importance
inside the
organization
Good idea to start with the issue that first raised
the management’s concern about the process performance.

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How to structure a problem statement?
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Performance
Measure
Desired direction
of change
Identification of
location

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During the past quarter, 40% of the plastic moulds
produced in the European plant have been
delivered to the customer later than promised to
the customer (promised lead time 100 days).
Example of a problem statement
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20. European Students of Industrial Engineering and Management
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The elements of the project charter often
include the following:
20
Problem
statement
Goals /
objectives
Project scope
Project teamTimeline Deliverables
Leveraging
opportunities
Key process
measurement

21. European Students of Industrial Engineering and Management
www.estiem.org
The elements of the project charter often
include the following:
21
Problem
statement
Goals /
objectives
Project scope
Project teamTimeline Deliverables
Leveraging
opportunities
Key process
measurement

22. European Students of Industrial Engineering and Management
www.estiem.org
The elements of the project charter often
include the following:
22
Problem
statement
Goals /
objectives
Project scope
Project teamTimeline Deliverables
Leveraging
opportunities
Key process
measurement

23. European Students of Industrial Engineering and Management
www.estiem.org
The elements of the project charter often
include the following:
23
Problem
statement
Goals /
objectives
Project scope
Project teamTimeline Deliverables
Leveraging
opportunities
Key process
measurement

24. European Students of Industrial Engineering and Management
www.estiem.org
The elements of the project charter often
include the following:
24
Problem
statement
Goals /
objectives
Project scope
Project teamTimeline Deliverables
Leveraging
opportunities
Key process
measurement

25. European Students of Industrial Engineering and Management
www.estiem.org
The elements of the project charter often
include the following:
25
Problem
statement
Goals /
objectives
Project scope
Project teamTimeline Deliverables
Leveraging
opportunities
Key process
measurement

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What is the difference between
“leveraging in” and “leveraging out”?
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27. European Students of Industrial Engineering and Management
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The elements of the project charter often
include the following:
27
Problem
statement
Goals /
objectives
Project scope
Project teamTimeline Deliverables
Leveraging
opportunities
Key process
measurement

28. European Students of Industrial Engineering and Management
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Which kind of roles are important for the
success of Lean Six Sigma projects?
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29. European Students of Industrial Engineering and Management
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Project team should comprise …
29
Green Belt
Process
owner
Executive
sponsor
Project team

30. European Students of Industrial Engineering and Management
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The elements of the project charter often
include the following:
30
Problem
statement
Goals /
objectives
Project scope
Project teamTimeline Deliverables
Leveraging
opportunities
Key process
measurement

31. European Students of Industrial Engineering and Management
www.estiem.org
31
What is the purpose of the
project charter?

32. European Students of Industrial Engineering and Management
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The problem statement helps to …
32
Clarify the focus
of the project
inside the team
Communicate the
importance
inside the
organization
Good idea to start with the issue that first raised
the management’s concern about the process performance.

33. European Students of Industrial Engineering and Management
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Time to work…
33

34. European Students of Industrial Engineering and Management
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SPONSOR MESSAGE
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35. European Students of Industrial Engineering and Management
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Time to revise – ladies and gentlemen,
it’s quiz time!
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36. European Students of Industrial Engineering and Management
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Question 1/3:
When should we use DMAIC?
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37. European Students of Industrial Engineering and Management
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Question 2/3:
Why should we create a project charter?
37

38. European Students of Industrial Engineering and Management
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Question 3/3:
Name one part of the project charter and
describe it in 1-2 sentences max.
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39. European Students of Industrial Engineering and Management
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Any questions before we move forward?
39

40. European Students of Industrial Engineering and Management
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Let’s talk about the key components of the
Define phase
40
Project Charter SIPOC
Defining
value-adding
work in processes

41. European Students of Industrial Engineering and Management
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Now it is the time to learn about one of the
fundamental tools of the Define phase
The SIPOC map
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42. European Students of Industrial Engineering and Management
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What does SIPOC stand for?
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43. European Students of Industrial Engineering and Management
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43
Suppliers Process Customers
Input Output

44. European Students of Industrial Engineering and Management
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For what SIPOC is used?
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45. European Students of Industrial Engineering and Management
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SIPOC is used to present
the high level view
of the process and to
identify the focus area
of the improvement project

46. European Students of Industrial Engineering and Management
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46
Suppliers Process Customers
Input Output
1 23

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Process
1. Fill main process steps between start and end (4-7 in total)
a) Keep on a high-enough level
b) Rule of thumb, often not done for a work of an individual person, but
rather for a process (definitions vary)

48. European Students of Industrial Engineering and Management
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48
Process Customers
Output
2. Identify output(s) of the process
3. Identify the critical customers for each process output

49. European Students of Industrial Engineering and Management
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49
Suppliers Process Customers
Input Output
4. Identify the key process inputs
5. Identify critical suppliers for each input
a) Where does the information or material we work on come from?
▪ Who are our suppliers?
b) What do they supply?
c) Where do they affect on the process flow?
d) What effect do they have on the process and on the outcome?

50. European Students of Industrial Engineering and Management
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Strategy
Governance
Business Rules
Sales Targets
Rewarding model
Product
Sales material
Sales leads
Sales mgmt tools
Top management
Sales mgmt
Product mgmt
Marketing dept
Customer Service
IT
Contract
Order
Customer data
Order & Delivery process
End customer
Defining
opportunities
Contacting
prospects
Making offer Contract

51. European Students of Industrial Engineering and Management
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Time to work…
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52. European Students of Industrial Engineering and Management
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SPONSOR MESSAGE
53

53. European Students of Industrial Engineering and Management
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Time to revise – ladies and gentlemen,
it’s quiz time!
54

54. European Students of Industrial Engineering and Management
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Question 1/2:
Why are we using SIPOC?
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55. European Students of Industrial Engineering and Management
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Question 2/2:
Why is it advised to have only 5-7
process steps in SIPOC?
56

56. European Students of Industrial Engineering and Management
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Any questions before we go forward?
57

57. European Students of Industrial Engineering and Management
www.estiem.org
Let’s talk about the key components of the
Define phase
58
Project Charter SIPOC
Defining
value-adding
work in processes

58. European Students of Industrial Engineering and Management
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What is the difference between
value-adding and non-value-adding work?
59
Non-value-adding
work
Waste (NVA)
Value-adding
work
Required (NVA)
Value defined as
value for the end
customer

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You work in a company producing mobile
phones – let’s test your skills!
60
Value-adding or not? If not, is it required or waste?
Moving the required parts
to the production line

60. European Students of Industrial Engineering and Management
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You work in a company producing mobile
phones – let’s test your skills!
61
Value-adding or not? If not, is it required or waste?
Shipping the mobile phone from
the factory to the customer

61. European Students of Industrial Engineering and Management
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You work in a company producing mobile
phones – let’s test your skills!
62
Value-adding or not? If not, is it required or waste?
Manufacturing the screen
for the mobile phone

62. European Students of Industrial Engineering and Management
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You work in a company producing mobile
phones – let’s test your skills!
63
Value-adding or not? If not, is it required or waste?
Testing the functionality of the
mobile phone screen

63. European Students of Industrial Engineering and Management
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You work in a company producing mobile
phones – let’s test your skills!
64
Value-adding or not? If not, is it required or waste?
Painting the mobile phone black
as customer requested

64. European Students of Industrial Engineering and Management
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Yamazumi diagram can be used to present
time spent in the process
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Value adding
Non-value adding
Waste
Non-value adding
Required

65. European Students of Industrial Engineering and Management
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Yamazumi diagram can be used to present
time spent in the process
66
Value adding
Non-value adding
Waste
Non-value adding
Required
Optimize
Eliminate
Reduce

66. European Students of Industrial Engineering and Management
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We just discussed about what is
value-adding work.
Next, we try to understand the common
types of wastes
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67. European Students of Industrial Engineering and Management
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7 common wastes can be remembered
through TIMWOOD ...
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T ransportation
I nventory
Motion
Waiting
O verproduction
O verprocessing
D efects
Unused worker intellect
often added as
the 8th waste

68. European Students of Industrial Engineering and Management
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What kind of wastes can be found in the
processes of a school cafeteria?
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69. European Students of Industrial Engineering and Management
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• Wasted energy
• Pollution
• Wasted space
• Delays in provision of service
• Incorrect inventory
• Data without integrity
• Duplication of effort
• … … … …
TIMWOOD is a good thinking model –
remember that other wastes may exist
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70. European Students of Industrial Engineering and Management
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Time to revise – ladies and gentlemen,
it’s quiz time!
71

71. European Students of Industrial Engineering and Management
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Question 1/3:
How do we define the value-adding work?
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72. European Students of Industrial Engineering and Management
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Question 2/3:
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What should be your goal with:
1) Value-adding work
2) Non-value adding, required
3) Non-value adding, waste

73. European Students of Industrial Engineering and Management
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Question 3/3:
Name one of the 7 most common wastes, do
you have a practical example in mind?
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74. European Students of Industrial Engineering and Management
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What did we learn in this session?
75
Project Charter SIPOC
Defining
value-adding
work in processes

75. European Students of Industrial Engineering and Management
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Thank you!
Any questions or comments?
76

76. European Students of Industrial Engineering and Management
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It’s Feedback time!
77
Persons giving feedback
Link to the feedback form
(can be found on Schoology and
WhatsApp)
Instructor to give feedback toPersons giving feedback
INSTRUCTOR 1
INSTRUCTOR 2

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It’s Feedback time!
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Feedback box

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Usage license of the
materials
https://creativecommons.org/licenses/by-nc/4.0/legalcode
Contact leansixsigma@estiem.org
for commercial usage of the materials
Materials of the trainings have been created based on the materials provided by
ESTIEM Summer Academy Professor Gregory H. Watson