This presentation guides you through the DMAIC methodology that encompasses Lean, Six Sigma and ToC initiatives. The define stage is the starting point of any six sigma projects. The presentation asks you where you are now and more importantly where you want to be. The presentation guides you through the process mapping phase, understanding data types to use and generating a project charter – Optimise-GB (Creating Operational Efficiencies)
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Lean, Six Sigma, ToC using DMAIC - Define phase
1. Lean, Six Sigma and ToC DMAIC Process Improvement Optimise -GB
2. Knowledge base Lean: is centred around creating more value with less work by removing waste and increasing efficiencies in business processes. Six Sigma: seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) to achieve cost reduction or profit increase and customer satisfaction Optimise -GB
3. Knowledge base Theory of Constraints (TOC ) is an overall management philosophy introduced by Dr. Eliyahu M. Goldratt and is geared to help organisations achieve their objectives. Any manageable system is limited by a small number of constraints. Optimise -GB
6. Six Sigma Define What do the customers want from the project? What are the issues you wish to address? What are the Critical To Quality aspects of the project? What is the reason for change? By failing to prepare you are preparing to fail – Benjamin Franklin Optimise -GB D M A I C
7. Six Sigma Stakeholder Analysis – who are the key players? Optimise -GB D M A I C
8. Six Sigma What do you do and how? Use SIPOC (Process) map Supplier - Who starts the activity in the process Input - What is used in the process: documents, reports, orders Process – What is done with the inputs Output – What are the outputs from the process, forms Customer – Who receives the output Optimise -GB D M A I C Supplier Input Process Output Customer
9. Six Sigma SIPOC (Process) map – Example: Customer Orders Optimise -GB D M A I C Supplier Input Process Output Customer Customer Need for goods Give order Order Operations Operations Order Take goods from shelf Obtained goods Finance Finance Obtained Goods Produce and print invoice Invoice Operations Operations Goods and Invoice Box goods / invoice Boxed Goods Customer
10. Six Sigma Obtain data relating to the process Optimise -GB D M A I C Process Give order Take goods from shelf Produce and print invoice Box goods / invoice
11. Six Sigma High level Problem statement Optimise -GB D M A I C Poor quality with goods Invoice entered incorrectly Invoice authorised in error Invoices lost in the post Invoice paid twice Process Give order Take goods from shelf Produce and print invoice Box goods / invoice
12. Six Sigma Critical to Quality (use SMART) Error Rate less than 2% Reduce cash collection days by 15 days Operational costs less than £5 per transaction Optimise -GB D M A I C Process Give order Take goods from shelf Produce and print invoice Box goods / invoice
13. Six Sigma Define the requirements Weighting: M = Must have failing this then the solution is rejected 3 = Very important to strategy, customer requirement, legal 2 = Would have significant benefit to the company 1 = Would be good to have but not imperative Optimise -GB D M A I C Quality Aspects / Objectives Weighting* Examples: Improve speed of debt collection by 15 days M Remove manual intervention of generating letters 3 Reduce costs of sending letters 1
14. Six Sigma 2. Identify protect team 1. Identify objectives / targets for project / Business case 3. Agree project scope and direction 4. Create a high level project timetable Optimise -GB D M A I C Project Charter (Project document) Or PID
15. Six Sigma Produce an A2/3 project charter to describe what the project is about and what it is to deliver (ex1) Optimise -GB D M A I C
16. Six Sigma Produce an A2/3 project charter to describe what the project is about and what it is to deliver (ex2) Optimise -GB D M A I C