1. Tollgate files on all 5 phases of lean six sigma based on a simulated project on the Acuity Institute platform.

2. Certification exams of all 5 phases of lean six sigma on the Acuity Institute platform.

The exams can be completed by next month. This week I just need 2 files on define and measure phases bases on the project. But I would like 1 tutor to complete all 5 phases of the project.

In total 5 assignments and 5 exams.

ONLY RESPOND IF YOU HAVE DONE PROJECTS ON LEAN SIX SIGMA BEFORE.

1Copyright © 2016 Acuity Institute LLC. All rights reserved.
Lean Six Sigma
Green Belt
Course eBook
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Copyright © 2016 Acuity Institute LLC. All rights reserved.
eBook Overview
Welcome to the eBook for the Acuity Institute Lean Six Sigma Green Belt Certification Program.
 You will need the most recent version of Adobe Reader to view the eBook. We do not recommend viewing
the eBook with Adobe Acrobat.
 We recommend becoming familiar with the eBook and its features. A few features include printing, viewing
notes, and capturing your comments.
 For ease of use, we have included numerous bookmarks in the eBook so you can quickly access common
course concepts.
 The eBook is for personal use only. Please do not use the eBook for presentations and training facilitation.
 The eBook is for the intended parties only.
 This eBook contains various exercises that are represented by the following icons:
General
ExercisesEXERCISE
1
Simco International Products Simulated Project.
When you see this icon you will be completing
an exercise within the simulation. We call these
exercises “deliverables”.
When you are done with the Deliverable you can
return to the course material by selecting the
“Go Back To Lesson” link.
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Course Objectives
2
Upon completion of this course, students will be able to:
 Apply Lean Six Sigma and the DMAIC methodology
 Apply skills in project management, process management, lean, change
management, and statistical analysis
 Define their role in a successful Lean Six Sigma deployment
 Recognize how to scope, define and lead Lean Six Sigma projects
 Recognize how to transition projects from phase to phase
 Complete projects
 Present projects to peers, managers and senior leadership
 Apply methods learned in the DMAIC process to business issues
 Apply statistical analysis to determine the relationship between key inputs and
process outputs
 Characterize the equation y = f(x)
 Implement controls to sustain gains
 Effectively manage team dynamics
 Navigate statistical analysis software (SigmaXL or Minitab)
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Course Lessons
Define Measure Analyze Improve Control
1. Lean Six Sigma
Introduction
2. Define Overview
3. Project Charter
4. Project
Management
5. Process
Definition
6. Stakeholder
Management
7. Voice of
Customer
8. Measure
Overview
9. Identify
Measures
10. Data Collection
11. Describe &
Display Data
12. Baseline
Performance
13. Analyze
Overview
14. Root Cause
Analysis
15. Lean Process
Analysis
16. Graphical Data
Analysis
17. Statistical Data
Analysis
18. Identify Root
Causes
19. Improve
Overview
20. Identify &
Select
Solutions
21. Financial
Impact of
Solutions
22. Risk Planning
& Testing
23. Implement
Solution
24. Control
Overview
25. Process
Control
26. Response
Planning
27. Project
Documentation
The Lean Six Sigma Green Belt course contains 27 lessons, and 5 Simulated Project sections
(32 Project Deliverables)
3
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Lean Six Sigma Toolkit
The Lean Six Sigma Toolkit icon is periodically introduced in this eBook The toolkit icon
informs you that a Lean Six Sigma template is available for your use. The templates are
located in the “Lean Six Sigma Toolkit Templates” folder. To access the templates you will
need to download this folder onto your computer.
The Lean Six Sigma Toolkit assists practitioners in keeping focused on their project work and
not creating “templates”. The toolkit includes common templates used throughout the Lean Six
Sigma DMAIC phases. The templates are developed in common formats (MS Word, MS Excel
or MS PowerPoint).
Included Templates  Solutions Benefits and Implications
 Solutions Prioritization Matrix
 Solutions Selection Matrix
 Stakeholder Identification
 Stakeholder Management Plan
 Stakeholder Map
 Standardized Procedures
 Team Meeting Agenda
 Team Profile
 VOC Research Plan
 XY Matrix
 Pilot Plan
 Process Monitoring Plan
 Process Value Analysis
 Project Charter
 Project Storyboard
 Quick Win Identification
 Response Plan
 Sigma Calculator
 SIPOC
 5 Whys
 Communication Plan
 CTQ Chart
 Dashboard Measurement Plan
 Data Collection Plan
 DMAIC Project Plan
 DMAIC Tollgate Presentation
 FMEA
 Force Field Diagram
 Implementation Plan – Detailed
 Implementation Plan – High Level
Template Name
4
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Acuity Institute Support
For product support questions please contact Acuity Institute at
support@acuityinstitute.com
Please visit www.acuityinstitute.com
for additional product and course offerings
5
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Lean Six Sigma Introduction
Lean Six Sigma Training
1
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By the end of this lesson, you will be able to:
 Learn what Lean Six Sigma is
 Learn about various Lean Six Sigma Improvement Methodologies
 Learn what the Lean Six Sigma Roles and Responsibilities are
Overview – Objectives – Key Topics
2
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Experience with Other Quality InitiativesEXERCISE
Objective
 Identify past experiences with other Quality or Process Improvement
initiatives.
Instructions
 Answer the following questions:
 What has been your experience with other Quality or Process
Improvement initiatives?
 What was good about the other Quality or Process Improvement
initiatives you were involved in?
 What struggles or challenges have you had with other Quality or Process
Improvement initiatives?
 What could have made them better?
 Prepare your findings.
3
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Please Do Not Proceed Forward
Experience with Other Quality InitiativesEXERCISE
4
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When you see this symbol, please do not continue forward in the materials until you have completed the exercise.

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Experience with Other Quality Initiatives
Discussion
EXERCISE
5
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Lean Six Sigma Training
Lean Six Sigma Overview
Lean Six Sigma Roles
Lean Six Sigma Improvement Methodologies
6
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Does your current performance meet customer expectations? Is there a
gap between what your company’s leaders want to achieve and the
organization’s ability to deliver it?
“Leaders who execute look for deviation from desired managerial
tolerances – the gap between the desired and actual outcome in everything
from profit margins to the selection of people for promotion… Like Six
Sigma, the discipline of execution doesn’t work unless people are
schooled in it and practice it constantly… Execution has to be part of an
organization’s culture…”
— Larry Bossidy, Former CEO of Allied Signal —
— Execution: The Discipline of Getting Things Done —
Vital Questions in an Increasingly
Competitive World
7
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Lean Six Sigma was developed out of necessity as a very rigorous and disciplined
approach for companies to improve products and services based on their customers’
expectations and requirements…an “outside looking in” approach. Lean Six Sigma has
many facets.
Lean Six Sigma Definition
Lean Six Sigma can improve profits and cut costs, but more importantly, it can
keep customers loyal as well as improve a company’s competitive advantage.
Goal
Vision
Philosophy
Benchmark
Methodology
Symbol
Metric
Tool
Process Focused
Business FocusedCustomer Focused
8
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Lean Six Sigma Definition
Lean Six Sigma uses a variety of tools and techniques to achieve superior
process performance, such as:
 Customer Surveying (Voice of Customer)
 Metric Identification and Collection
 Baselining / Measuring Process Performance
 Data Based Decision Making (Analysis and Statistics)
 Lean Process Flow / Value Analysis
 Benchmarking “Best In Class” Companies
 Risk Analysis / Assessment
 Implementation Planning / Management
 Change Management
9
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A process is defined as a repetitive and systematic series of actions
or operations whereby one or more inputs from suppliers is used to
achieve an output of value to the customer (internal/external)
Input Output
Process
Actions
Process Model
What is a Process?
10
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I P O
The Work Process
I P O
The Improvement Process
Relationship of Work Process and
Improvement Process
11
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For every process there is a dependent variable called Y that we are
attempting to influence. The independent variables which determine
what happens to our Y are called the process X’s. Thus, we can boil
down every process into a simple formula:
Y = f(x1,x2,x3…xn)
The goal of Lean Six Sigma is to
understand the relationship between
our various Xs and our Y, so we can
manipulate the Xs to modify Y as desired,
then lock down the process so that Y
remains within the proper range and is
meeting customer requirements.
The Focus of Lean Six Sigma
12
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Lean Six Sigma Focuses on Reducing Variation
Variation Happens
 All repetitive activities of a process have a certain amount of
fluctuation or variation
 Variation is the “Voice of the Process”
 When plotted, process variation becomes visible over time
 Input, process, and output measures will have variation
 Failure to understand variation could be costly
Time Frequency
13
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Why it’s Important to Understand Variation
PROCESS VARIATION INHIBITS OUR ABILITY TO MEET
CUSTOMER REQUIREMENTS
Product or Service Output
Critical to Quality (CTQ)
Defects: Service
unacceptable to
customer
A
Product or Service Output
Critical to Quality (CTQ)
Defects: Service
unacceptable to
customer
A
Variation
14
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Sigma is a Greek letter that is a statistical unit
of measurement used to define the standard
deviation of a population. It measures the
variability or spread of the data.
Sigma is a name given to indicate how much of the data falls within the
customers’ requirements. The higher the process sigma, the more
the process outputs, products and services, meet customers’
requirements – or, the fewer the defects.
“Sigma” Defined
15
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Defects are defined as not meeting customer requirements. Put simply, sigma is the measure of how far a process is away from achieving near perfect customer satisfaction. “6” Sigma is measured at near perfect… meeting customer expectations 99.99966% of the time.

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In this diagram, the Sigma is calculated by the number of occurrences
(defects) that fall outside of the customer requirement (for Process A).
Process B represents the optimal performance with no occurrences outside
of the requirement.
Optimal Performance
Product or Service Output
Critical to Quality (CTQ)
Defects: Service
unacceptable to
customer
B A
Customer
Requirement
“Sigma” Defined
16
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Process (A) has considerable variability or spread and is not meeting the critical customer requirement (identified by the defects). By reducing the variation of the Process (B), the process is more capable of meeting customer requirements and will lead to higher sigma performance and greater customer satisfaction.

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With performance at 2 Sigma:
ONLY 69.146% of products and/or services
meet customer requirements with 308,538
defects per million opportunities.
With performance at 4 Sigma:
99.379% of products and/or services meet
customer requirements…with 6,210 defects
per million opportunities.
With performance at 6 Sigma:
99.99966% – As close to flaw-free as a
business can get, with just 3.4 defects per
million opportunities.
Superior business
performance target
(common goal in
manufacturing
environments)
Realistic business
performance target for
transaction / service
industry
Most companies
processes perform at this
level or below prior to
improvement
Sigma Scale
17
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Most companies measured, prior to business performance improvement, perform around a 1 to 2 sigma, which equates to meeting customer expectations only 30.9% to 69.1% of the time.
These numbers are staggering and can be extremely detrimental to customer satisfaction with products and services. Although 6 Sigma is difficult to achieve in some industries, a 3.5 Sigma (meeting customer expectations 97.7% of the time) is realistic for most service related companies.

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Why “6” Sigma?
When Processes Operate at less than 6 Sigma:
 Two unsafe plane landings per day at
most major airports
 500 incorrect surgical operations per
week
 One hour unsafe drinking water per
month
 16,000 pieces of mail lost every day
 No electricity for 7 hours per month
Even if your goal is 99.0% quality… Your results would be:
18
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 Lean Six Sigma is a framework to improve performance
 Lean Six Sigma is not the solution for everything
 Lean Six Sigma does apply to every function and business
 Lean Six Sigma is not just about statistics
 Lean Six Sigma is about Business Performance
 Lean Six Sigma is not new work
 Lean Six Sigma is a better way to work
Lean Six Sigma – What it is and What it is not
19
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Applying Lean Six Sigma
Lean Six Sigma can be applied to any process problem to achieve significant
improvement results. The following are a few examples…..
Results After
Applying Lean Six
Sigma
Application of
Lean Six Sigma
Core Process
Area
Operations – Claims
Payment
(Insurance Provider)
 Reduced claims eligibility
determination errors to 5%
 Saved over $1 MM per
year in cost avoidance
dollars
 Inaccurate determination of
claims eligibility occurred
26% of the time resulting in
a loss of $1.1 MM per year.
 Applied Lean Six Sigma to
identify root causes of
claims eligibility
determination errors.
HR – Staffing
(Employee Benefits
Provider)
 Increased employee
retention by 20%
utilizing exit interview
data
 Applied Lean Six Sigma to
identify root causes of high
employee turnover and loss
of high potential employees.
20
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Applying Lean Six Sigma
Results After
Applying Lean Six
Sigma
Core Process
Area
Application of
Lean Six Sigma
Sales
(Vehicle Service Contract
Provider)
 Increased sales volume by
40%
 Increased revenue by 35%
 Sales run rate data indicated
by year end there would be a
110,000 shortfall between
actual contract sales volume
and the sales volume goal.
 Applied Lean Six Sigma to
identify root causes of reduced
sales volume.
IT – QA/Testing
(Software
Development
Company)
 Extended cycle time of the
software bug fixing process
drove increased costs of
releasing a new software
product.
 Utilized Lean Six Sigma to
identify drivers of extended
cycle time.
 Reduced average bug
fixing process time
from 16 to 5 business
days
21
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Companies Deploying Lean Six Sigma (a sample)
Motorola
Allied Signal
General Electric
Sony
Honda
Maytag
Raytheon
Bombardier
Canon
Polaroid
IBM
American Express
Dow
Lockheed Martin
Texas Instruments
DuPont
Toshiba Fidelity Investments
Johnson & Johnson
Bank of America
Nokia
Digital Electronics
Kodak
Jaguar
22
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Lean Six Sigma Training
Lean Six Sigma Overview
Lean Six Sigma Roles
Lean Six Sigma Improvement Methodologies
23
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Process
Management Kaizen DMAIC DFSS
Just Do
It
• Problem
identified and
solution is
known
• Implement a
fix and
establish a
dashboard to
continuously
monitor
process
• Process
performance is
unknown or not
understood
• Implement a
process
monitoring
dashboard to
decide what to do
next
• Problem
identified and
solution is
unknown.
• Small in scale
or urgency
needed for
process
improvement
• Initiate 2-5 day
Kaizen Event
to analyze the
process and
implement
improvements
• Existing
process is not
meeting
customer
requirements
or business
objectives
• Initiate a
DMAIC
project to
identify root
causes of the
problem and
initiate
breakthrough
improvements
• New product
or process
needs to be
designed or
significant
problems to
current
process exist
• Initiate DFSS
project to
design
processes to
meet
customer
requirements
Types of Improvement Methodologies
Lean
• Process is
inefficient and
contains
wasteful
activities
• Initiate a Lean
project to
identify non
value-add
activities and
remove waste
from the
process
24
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“Process Management” and “Just Do It”
Process Management
 Manage processes more effectively by the collection, display,
and evaluation of process data.
 Data is important in that it fuels the various problem solving
approaches, specifically the ability to execute Lean Six Sigma
projects.
Just Do It
 Pinpoint process problem
 Solution(s) already known
 Implement solution(s)
 Measure performance (ongoing Process Management)
25
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A Kaizen Event is a very concentrated team-
oriented effort to rapidly improve the
performance of a process.
Kaizen
Event
 Team effort is coordinated over a brief period of time – typically
no more than 5 days.
 A Kaizen Event can be very chaotic for a short period until
solutions can be implemented as numerous and major
improvements will be implemented at the same time.
 Kaizen involves deliverables and activities prior to and right
after the Kaizen Event that must be completed to ensure
successful execution.
“Kaizen” Events
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“Lean”
Lean is utilized for the following purposes:
 To reduce or eliminate capacity constraints of the
process
 To reduce the lead time of the process
Step 1 Step 2 Step 3 Step 4
Bottleneck
Inputs Outputs
2 Days 10 Days 4 Days 6 DaysInputs Outputs
=22 Days
27
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“DMAIC” and “DFSS”
 Define
 Measure
 Analyze
 Improve
 Control
 Define
 Measure
 Analyze
 Design
 Verify
Continuous
Process
Improvement
(DMAIC)
CTQ Tree
ID Root Causes that drive
process performance
Design for Six
Sigma
(DFSS)
QFD
Optimized Design
across processes
Methodology and Primary Focus of Each Discipline
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Process
Management Kaizen
DMAIC
DFSS
Just Do It
Selecting the Lean Six Sigma Methodology
Lean
Process
performance
understood?
Can the
problem be
solved in less
than 5
days? Is it a
process flow
/ cycle time
problem?
Is it a
variation /
defect driven
problem?
Is a new
process or
redesign
required?
Is the
solution to
the problem
simple &
known?
Start
Yes
No
Explore Other Methodologies
No
No
No
No
No
Yes
Yes
Yes
Yes
Yes
29
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Improvement Techniques – Lean and Six Sigma
Combining Lean and Six Sigma is Best in Class
Six SigmaLean
Effect
Cause A
Cause D
Cause C
Cause B
Quality and Efficiency
Improvement
Efficiency
Improvement
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Lean Six Sigma DMAIC Methodology Defined
DMAIC is a
Common Lean Six
Sigma Problem
Solving
Methodology
ANALYZE
“Identify root cause for
performance shortfalls”
CONTROL
“Monitor new
processes or products”
IMPROVE
“Identify and implement
solutions”
MEASURE
“Measure current
performance”
DEFINE
“Identify customer
requirements”
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The focus of this course is the Lean Six Sigma DMAIC Methodology.

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Define Measure Analyze Improve Control
Project Charter
Project Management
Project Plan
Process Definition
SIPOC
As-Is Process
Map
Quick Win
Identification
Stakeholder
Management
Stakeholder Map
Stakeholder
Management Plan
Communication
Plan
Voice of Customer
Customer
Identification
VOC Research
Plan
Kano Analysis
CTQ Identification
 Root Cause Analysis
Affinity Diagram
Fishbone Diagram
and/or 5 Why’s
Lean Process
Analysis
Lean Tools and
Measures
Graphical Data
Analysis
Histogram
Pareto Chart
Box Plots
Correlation
Analysis
Statistical Data
Analysis
Linear Regression
Multiple
Regression
Root Causes
Identified
Quick Win
Identification
Identify Measures
X/Y Matrix
Data Collection
Operational
Definitions
Measurement
Systems Analysis
(MSA)
Data Collection
Plan
Describe and Display
Data
Histogram
Pareto Chart
Pie Chart
Run Chart
Control Charts
Baseline Performance
Sigma
Performance
Yield
Process
Capability
Quick Win
Identification
Identify and Select
Solutions
Generate Solutions
Benchmarking
Solutions
Prioritization Matrix
Solution Selection
Matrix
To-Be Process Map
Financial Impact of
Solutions
Cost/Benefit Analysis
Risk Planning and
Testing
Failure Modes and
Effects Analysis
(FMEA)
Pilot Plan
Implement Solutions
Multi-Generational
Product Plan (MGPP)
Implementation Plan
Stakeholder
Management
Project Storyboard
Process Control
Control Charts
Process
Monitoring Plan
Dashboard
Response Plan
Project
Documentation
Process
Procedures
Replication
Opportunities
Solution Transfer
Plan
Key DMAIC Project Deliverables
32
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Lean Six Sigma Training
Lean Six Sigma Overview
Lean Six Sigma Roles
Lean Six Sigma Improvement Methodologies
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Champions
Black Belts
and Green
Belts
Master
Black Belts
Process Owners &
Project Sponsors Projects
Project Team
Members and
SMEs
Collaborative Effort
is the Key
Lean Six Sigma Roles
34
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Roles are structured to support project success and drive business performance results. It is critical to gain agreement of roles and time commitment early so teams can establish chemistry and focus on project deliverables.

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Champions / Executive Leadership
 Monitors the external and internal factors affecting the business
 Defines business strategy
 Communicates the plan for business success
 Champions Lean Six Sigma vision
 Establishes improvement priorities and targets
 Provides and aligns resources (Sponsors, Black Belts / Green
Belts), ensures cross-functional collaboration
 Establishes accountability for results
 Role modeling appropriate behaviors, change leader
 Integrates Lean Six Sigma into business direction & plan
 Markets Lean Six Sigma program and results
35
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Process Owners
 Assists in identifying potential Lean Six Sigma projects
 Approves and supports projects
 Provides resources to serve as team members and subject mater
experts (SMEs) on projects
 Approves changes in project scope and removes barriers
 Owns the solution delivered by the project team
 Responsible for supporting implementation of improvement
actions
36
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In many cases the Process Owner and Project Sponsor are the same person supporting the project.

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Project Sponsors
 Provides and aligns resources (Black Belts / Green Belts, Team
Members), ensures cross-functional collaboration
 Establishes improvement priorities, targets and accountability for
results
 Role modeling appropriate behaviors, change leader
 Ensures project is aligned with department and strategic
objectives
 Approves all phases of Lean Six Sigma projects
 Ensures project deliverables are being maintained and project is
on time and on budget
 Approves changes in scope of the project, removes barriers
 Markets Lean Six Sigma program and results
37
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In many cases the Process Owner and Project Sponsor are the same person supporting the project.

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Master Black Belt
 Part-time or full-time position
 Provides expertise on Lean Six Sigma tools and techniques,
including project management and change management
 Provides strategic direction to leadership and project team
 Identifies projects critical to achieving business goals
 Is ultimately accountable for project success
 Serves as main champion during change implementation
 Identifies, trains, coaches and evaluates Black Belts / Green
Belts and Team Members
 Ensures cross-functional & cross-team collaboration
 Acts as Lean Six Sigma advisor to Champions, Sponsors and
Process Owners
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Black Belt
 Full-time position
 Provides direction and leadership for project team, manages
inter-project communications
 Delivers results through application of Lean Six Sigma
methodologies
 Provides skills training when needed
 Accountable for reporting project progress and coordinating
communication to project stakeholders
 Maintains all documentation from project, prepares and submits
deliverables
 Manages implementation of solutions, ensures transition of
improved process to the business
 Acts as a change catalyst
39
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Green Belt
 Part-time position
 Provides direction and leadership for project team, manages
inter-project communications
 Delivers results through application of Lean Six Sigma
methodologies
 Provides skills training when needed
 Accountable for reporting project progress and coordinating
communication to project stakeholders
 Maintains all documentation from project, prepares and submits
deliverables
 Manages implementation of solutions, ensures transition of
improved process to the business
 Acts as a change catalyst
40
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Project Team Members
 Part-time position
 Team player in application of Lean Six Sigma methodologies
 Provides expertise and feedback to the project team
 Is responsible for tasks within the team action plan
 Delivers regular updates to team on status of action steps
 Acts as a change catalyst
41
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In many organizations Project Team Members are referred to as “Yellow Belts”.

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Subject Matter Experts (SME)
 As-needed position
 Provides subject matter expertise and feedback to the project
team
 Acts as a change catalyst
42
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Finance Analysts (also a SME)
 Part-time role
 Responsible for providing financial support to Lean Six Sigma
deployment
 Provides standard, consistent guidelines for project valuation
 Provides financial savings forecast for potential projects
 Estimate project savings during the project execution
 Track / validate actual project savings after project closure
43
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Project
Status
Phase
Potential Defined
Define
Active
Measure Improve /
Implement
Control
Realization
Ty
pi
ca
l L
ev
el
o
f E
ffo
rt Champion/Sponsor
Black Belt / Green Belt
Define
Project
& Scope
Select
Black Belt/Green
Belt
Project
Team
Kickoff
Develop, Sell, Pilot, and
Implement Solutions
Standardize and
Replicate Solutions
Master Black Belt
Analyze
Fi
na
l P
ro
je
ct
V
al
id
at
io
n
Process Owner
Project Team
In
iti
al
P
ro
je
ct
V
al
id
at
io
n
(B
y
B
B
o
r G
B
)
Pr
oj
ec
t A
ut
ho
riz
at
io
n
(A
ss
ig
ne
d
to
B
B
o
r G
B
)
DMAIC Project Deployment Effort Required
44
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What you learned during this lesson:
Summary of Lesson
 Understanding what Lean Six Sigma is
 Introduction to the various Lean Six Sigma Improvement
Methodologies
 Understanding of what the Lean Six Sigma Roles and
Responsibilities are
45
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End of Lesson: Lean Six Sigma Introduction
Lean Six Sigma Training
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Define Phase
Lean Six Sigma Training
1
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Define Phase Overview
Lean Six Sigma Training
2
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Define establishes the project scope and
boundaries, the problem the team is improving and
the goals that will be achieved once improvements
have been implemented, the process that the team
is improving, and the customer requirements of the
process.
Define Phase Introduction
3
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 Develop Project Charter for Business
Problem/Case, Roles and Project Plan
 Key Characteristics of Effective Teams
 Document and Understand the Current
Process
 Identify Quick Win Opportunities
 Understand How to Manage Stakeholders
 Identify Customer Requirements (CTQ’s)
through Voice of Customer (VOC)
Voice of
Customer
Voice of
Customer
ANALYZE
CONTROL
IMPROVE
MEASURE
DEFINE
Define Phase Overview
4
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Define Phase Deliverables
Define Measure Analyze Improve Control
Project Charter
Project Management
Project Plan
Process Definition
SIPOC
As-Is Process
Map
Quick Win
Identification
Stakeholder
Management
Stakeholder Map
Stakeholder
Management Plan
Communication
Plan
Voice of Customer
Customer
Identification
VOC Research
Plan
Kano Analysis
CTQ Identification
 Root Cause Analysis
Affinity Diagram
Fishbone Diagram
and/or 5 Why’s
Lean Process
Analysis
Lean Tools and
Measures
Graphical Data
Analysis
Histogram
Pareto Chart
Box Plots
Correlation
Analysis
Statistical Data
Analysis
Linear Regression
Multiple
Regression
Root Causes
Identified
Quick Win
Identification
Identify Measures
X/Y Matrix
Data Collection
Operational
Definitions
Measurement
Systems Analysis
(MSA)
Data Collection
Plan
Describe and Display
Data
Histogram
Pareto Chart
Pie Chart
Run Chart
Control Charts
Baseline Performance
Sigma
Performance
Yield
Process
Capability
Quick Win
Identification
Identify and Select
Solutions
Generate Solutions
Benchmarking
Solutions
Prioritization Matrix
Solution Selection
Matrix
To-Be Process Map
Financial Impact of
Solutions
Cost/Benefit Analysis
Risk Planning and
Testing
Failure Modes and
Effects Analysis
(FMEA)
Pilot Plan
Implement Solutions
Multi-Generational
Product Plan (MGPP)
Implementation Plan
Stakeholder
Management
Project Storyboard
Process Control
Control Charts
Process
Monitoring Plan
Dashboard
Response Plan
Project
Documentation
Process
Procedures
Replication
Opportunities
Solution Transfer
Plan
5
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End of Lesson: Define Phase Overview
Lean Six Sigma Training
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Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove
Project Charter Development
Project Selection
Define – Project Charter
Lean Six Sigma Training
Effective Teams
1
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By the end of this section, you will be able to:
 Learn why developing a Lean Six Sigma project selection criteria
is important
 Learn how to select Lean Six Sigma projects
Overview – Objectives – Key Topics
2
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Why Establish a Lean Six Sigma Project
Selection Process?
 Ensure all business process issues from all possible
sources have been incorporated
 Ensure alignment of potential improvement ideas with
business and customer satisfaction goals
 Resource and time constraints require the business to
work on the most important issues first
3
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Select key
improvement areas that
will drive key
performance indicators
(KPIs), strategy, and
improve customer
satisfaction
Brainstorm
potential projects
Prioritize potential
projects
Select projects by
consensus of business
leaders




Active Projects Initiatives
Key Improvement Areas
A B EC D
Potential
Projects
________
________
Prioritize Prioritize Prioritize Prioritize Prioritize
Potential
Projects
________
________
Potential
Projects
________
________
Potential
Projects
________
________
Strategy
Customer
Requirements
Core
Processes
KPIs
Key Performance Indicators
KPIs
Potential
Projects
________
________
Project Identification
4
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L M H
Understanding of How to Solve the Problem
B
us
in
es
s
or
C
us
to
m
er
Im
pa
ct
“Boiling the
Ocean”
“Just Do It”
“Looking Good”
“Why Bother?”
H
M
L
Quick
Wins
Lean Six
Sigma
Projects
What Makes a Good Lean Six Sigma Project
Step 2: Project Identification
5
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High potential Lean Six Sigma
opportunity,
develop Project Charter
Potential Lean Six Sigma opportunity
Low potential Lean Six Sigma
opportunity
Prioritized list of Potential Projects
1
4
5
2
6
3
9
10
12
147
11
13
21
17
18
15
16
20
19
Low Medium High
Impact on Key Business Drivers
Lo
w
M
ed
iu
m
H
ig
h
Fi
na
nc
ia
l I
m
pa
ct
Step 3: Prioritize Potential Projects
8
6
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Lean Six Sigma Projects Selected
Low Medium High
Impact on Key Drivers
Lo
w
M
ed
iu
m
H
ig
h
Fi
na
nc
ia
l I
m
pa
ct
Step 4: Select Projects
21
17
18
15
16
20
19
Next Step: Assign
Black Belts / Green
Belts to the Projects
and Complete the
Individual Project
Charters
7
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What you learned during this section:
Summary of Section
 Understand why developing a Lean Six Sigma project selection
criteria is important
 Understand how to select Lean Six Sigma projects
8
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Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove
Project Charter Development
Project Selection
Define – Project Charter
Lean Six Sigma Training
Effective Teams
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By the end of this section, you will be able to:
 Understand what a project charter is and why it’s important
 Learn the steps and components for drafting a project charter
 Learn the tips and traps for drafting each component of a charter
 Learn how to calculate estimated project benefit
 Gain experience applying effective criteria to developing the charter
 Learn how to identify when you need to change your project scope
Overview – Objectives – Key Topics
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A project charter is a document that defines the
project initiative. It provides purpose, focus and
goals for an improvement project team.
 Defines what is expected of the team
 Clarifies the desired outcomes of the project
 Keeps the team focused
 Aligns the team with organizational objectives
 Transfers the project from the Sponsor to the
improvement team
Definition:
Purpose:
Definition and Purpose of a Project Charter
Project Charter
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The project charter is the first deliverable a project team will undertake. The first draft of the project charter is completed by the Sponsor, Master Black Belt, and Black Belt / Green Belt. Once the project is initiated, the project charter is owned by the project team. The Sponsor will continually provide input and approve elements of the project charter throughout the project.
A project charter is often referred to as a “living document”, since it is continuously updated throughout the engagement of the project.

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 Name the project
 What is the business unit being impacted?
 Identify the project primary resources
 What is the timeline for the project?
 When was the charter revised?
 How will this project drive strategic initiatives and goals?
 Why is it important to do now? Why is it a priority?
 What customer (s) will benefit from this project (may also
include internal customers) and how?
Business Case
General Information1. Project Overview
2. Project Description
 What problem is the project addressing?
 Where and when does the problem occur?
 What are the defects? (not meeting customer expectations)
Problem Statement
Elements of a Project Charter
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2. Project Description
(continued)
 What are the high level goals?
 What are the goals for the project? Starts with a verb (i.e.,
reduce time; eliminate defects; control costs; increase revenue).
 Include measurable targets
 How will we know if this project is successful?
Project Goals
 What is the primary area or process that the project will be
focused on?
 What process(s) / department(s) are included in the project?
 What process(s) / department(s) are excluded in the project?
 What are the boundaries of the process we are improving?
Process start point? Process stop point?
Project Scope
 What are the potential dollar benefits from the project?
 Separate hard savings (cost reduction, increase in profits) from
soft savings (cost avoidance, customer retention)
Estimated Benefit ($$)
Elements of a Project Charter
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 Determine people who will be involved in the project
 Their function in the business (i.e. VP of Sales, Risk
Manager, Customer Service Representative)
 Their role on the project (Champion/Sponsor, Master Black
Belt, Black Belt / Green Belt, Team Member, Subject Matter
Expert/SME, Financial Analyst)
 List the anticipated amount of time the resource will spend on
the project (hours per week)
 Identify other resources that may be required; such as
contract IM/IT help, outside consultants, market research,
etc.
 Includes ad hoc members such as HR, IM/IT, Finance
Project Resources
 Complete a preliminary, high-level project plan with start &
completion dates for each phase
Project Milestones
3. Project Resources
4. Project Milestones
Elements of a Project Charter
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Resources should be approved by the Champion (and/or Sponsor) and direct managers of the employees that will participate on the team prior to project kick-off.
Guidelines for Milestones:
Dates should be tied directly to the DMAIC phases.
Project plan and timeline should be aggressive but realistic.
Should be approved by all team members and Champion (and/or Sponsor) and updated regularly.

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 Defines the project name
 Clearly distinguishes the project from other projects
 Uses a name that is easy to remember
 Documents the project primary area of focus and resources
assigned
 Identifies the timeline of the overall project
 Documents each time the charter is revised
Project Overview
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 Explains/validates the project
 Defines the “value-add” of the project
 Explains the rationale for doing the project
 Describes why it is important to the organization to do this
project now?
 Indicates how internal/external customers will benefit
 Describes potential consequences of not doing the project
 Indicates the link between the project and current business
goals
Project Description – Business Case
16
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The business case describes the project and communicates the rationale for doing the project.
Typically, the business case is one area of the project charter that usually does not get revised or modified throughout the life of the project.

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Pharmaceutical Provider
Pharmaceutical publications generate extensive publicity and marketing opportunities for our most important
drugs. These publications need to be released to the market place within crucial timelines from when the
drugs are to be sold. Currently, these publication releases are very time consuming and are not being
released until long after the new drugs have been distributed. This leads to loss of revenue due to the initial
and crucial advertising opportunities when the drugs are initially distributed.
Claims Processing Center
The Customer Inquiry process is an important touch point with our customers. Therefore, one of our
strategic objectives is to ensure the customer inquiry process is consistent in meeting our customer’s needs.
Customers have indicated that our customer inquiry process needs improvement. Currently, there is no
consistent approach or standard to handling customer inquiries. The handling and response to customer
inquiries varies a great deal from one customer service representative to another. This lack of consistency
leads to inaccurate handling of customer inquiries, rework, increased customer complaints, and ultimately
lost customers.
Telecommunications Provider
Customer survey results indicate that the timeliness of installing additional phone lines is critical to
satisfaction for our large business customers. Our large business customers are our most profitable
customer segment, therefore, meeting their requirements for the installation process is critical to our ability
to meet our annual profitability goals. Currently our installation process is meeting customer requirements
only 50% of the time. If we do not improve the timeliness of the installation process, we will continue to
receive customer complaints, lose customers, and lose revenue.
Business Case Examples
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The business case should describe the broad areas of the project and answer the question of why the project should be conducted. The business case should be written in such a way that it creates a compelling case for why the organization needs to do this project now.

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 Identifies what problem the improvement project is addressing
 Usually describes the “pain”, issue or problem
 Can also describe an opportunity
 Should be measurable
 Identifies where and when problems occur
 Defines what is not meeting customer expectations
 Describes the magnitude and impact of the problem
 Quantifies how large the problem is
 Describes the impact presented by the problem
Project Description – Problem Statement
18
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Notes:
We recommend including the baseline performance and capability (entitlement) of your current process in the problem statement.

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Tips:
 Validate problem is based on data vs. perception or “gut feel”
 Ensure the customers of the process and the organization think
working on this process is valuable and necessary
Traps:
 Prejudging a root cause within the problem statement
 Including a solution in the statement
 Writing a statement that is too narrowly defined or too broadly
defined
Problem Statement Tips and Traps
19
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Notes:

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Pharmaceutical Publications
During the past year, publications have increased by a rate of 20% per
month. The time it takes to get a publication released is approximately 4
months. In addition, there are on average 4 drafts of each publication that
are created before it is approved for release. These problems lead to slow
market distribution and could lead to lost revenue if the publication is
released too late to have a positive impact on the new drug sales.
Claims Processing Center
Customer inquiries account for 65% of incoming claims calls. Currently, our
response time to these inquiries varies from 2 hours to 5 days. In addition,
approximately 10% of inquiry calls are call backs from customers who have
not received follow-up from their initial call. These problems are leading to
customer dissatisfaction with our services and ultimately loss of business.
Problem Statement Example
20
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 Defines and clarifies the goals the project team is focused on
accomplishing
 Includes measurable targets and completion date
 Starts with a verb
 Eliminate defects
 Reduce time
 Increase revenue
 Decrease costs
 If these goals are met the project is considered successful
Project Description – Project Goals
21
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Goal Statements Should be SMART !!
S – specific
M – measurable
A – attainable
R – relevant
T – time bound
Criteria for Developing Goal Statements
22
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Measurable
Assigns a quantifiable metric
for the goal
Attainable
While the goal should be a
stretch goal, it should also
have a high probability of
success given an assessment
of the potential resources,
timelines and challenges
Specific
A SMART goal identifies a
specific action driving a
specific outcome
Time Bound
The goal has an aggressive
but reasonable timeline for
meeting desired results
Relevant
The project goal should be
relevant to the organizational
strategy
Criteria for Developing Goal Statements
23
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Tips:
 Should focus on the results that will drive and define project
success
Traps:
 Including a solution as part of the project goals
 Assigning blame in the statement
Goal Statement Tips and Traps
24
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Presenter
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Notes:

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Pharmaceutical Publications
 Problem Statement – During the past year, publications have increased by a rate of 20% per
month. The time it takes to get a publication released is approximately 4 months. In addition,
there are on average 4 drafts of each publication that are created before it is approved for
release. This problems leads to slow market distribution and could lead to lost revenue if the
publication is released too late to have a positive impact on the new drug sales.
 Goal Statement – Reduce publications release time by 50% and drafts to 1 for each
publication by August 30th.
Claims Processing Center
 Problem Statement – Customer inquiries account for 65% of incoming claims calls.
Currently, our response time to these inquiries varies from 2 hours to 5 days. In addition,
approximately 10% of inquiry calls are call backs from customers who have not received
follow-up from their initial call. These problems are leading to customer dissatisfaction with
our services and ultimately loss of business.
 Goal Statement – Reduce the response time <1 day and eliminate call backs from customers by January 15th. Problem and Goal Statement Examples 25 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Indicates the financial benefit of doing the project  What are the potential costs of not doing this project?  Quantify the potential financial impact and link to business pain  Separate hard benefits (cost reduction, profit increase) from soft benefits (cost avoidance, customer retention)  During the front-end of a project, detailed data and information may not be available, so estimates may be required at the beginning of a project  Updated and refined as the project proceeds and more data becomes available Project Description – Estimated Benefit 26 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  One of the main goals of Lean Six Sigma is to improve the company’s bottom line financial results over the long term  Capturing and reporting the financial benefits of the project are important to determine:  Are we getting a return for our investment of valuable resources?  Are we having an impact on our key financial performance measures?  How process improvements affect our organization’s financial health and overall performance  Project benefits will be reported to the Leadership Team  The results must be verifiable and supported Why the Estimated Project Benefit is Important 27 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: To fully commit to and support a project, your Champion (and/or Sponsor) and other key stakeholders need to have at least a rough estimate of the projects impact. They then have an opportunity to buy into the project, or suggest revisions in scope or direction that will improve the business impact and estimated benefit. Copyright © 2016 Acuity Institute LLC. All rights reserved.  Hard Benefits - Improvements that result in real and measurable cost or asset reductions.  Examples of Hard Benefits: – Incremental revenues – Cost reductions such as fewer headcount  Soft Benefits - Improvements that do not immediately reduce cost or assets but provide benefits through improved process efficiency, employee productivity, improved customer satisfaction, improved competitiveness, etc.  Examples of Soft Benefits: – Avoidance of lost sales – Cost avoidance such as the need to hire 5 instead of 10 The Two Categories of Project Benefits ($$) 28 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Gross Hard Project Benefits + Gross Soft Project Benefits Less: Project Implementation Costs = Net Project Benefits Net Project Benefits Method to Calculate Estimated Project Benefits ($$) 29 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Hard benefits…such as:  Incremental Revenues…less Cost of Goods Sold (COGS)  Cost Reductions Soft benefits…such as:  Avoidance of lost sales…less COGS  Cost avoidance Gross Hard Project Benefits + Gross Soft Project Benefits Less: Project Implementation Costs Implementation costs include...  Full-time resources assigned to the project  Consultants, contractors and temps  Other considerations for running the project Implementation costs exclude…  Direct costs of Quality resources assigned to the project prior to implementation Gross Project Benefits Net Project Benefits Project Implementation Costs Method to Calculate Estimated Project Benefits ($$) 30 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Reduce costs by 30% ($50,000 annually) Reduce rework, increase productivity per person Reduce task time by 3 hours per week 10% increase in monthly revenues ($725,000 annually) Reduce re-work, speeds up workflow cycle time Reduce processing accuracy defects Reduce costs of potential legal fees by 40% ($1.5 million annual impact) Avoid legal costsEliminate compliance risk 20% increase in repeat business ($2 million annual impact) Increase customer satisfaction; increase customer retention Increase in on time delivery and installation of phone line from 80%-90% Estimated dollar impact of improvement ($$) Benefit of ImprovementType of Improvement Examples of Estimated Project Benefits ($$) 31 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Identifies the process the team will be focusing on improving  Establishes project boundaries  Clarifies the process start and stop points  Clarifies which process(s) / department(s) are included in the project  Identifies which process(s) / department(s) are excluded from the project Project Description – Project Scope 32 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Properly scoped projects are critical for success and optimal benefit so pay attention to the following tips and traps: Tips:  Avoid scopes that are too small to justify the manpower commitment of a Lean Six Sigma project  Avoid too large of scopes which can take the team’s focus off the key project objective and put the success of the project at risk Traps:  Tendency in the beginning of the project to try to do too much  Overestimating the level of resource commitment  Overestimating the willingness of our stakeholders to embrace radical change  Assigning blame in the statement Project Scope Tips and Traps 33 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Be wary of scope creep! Allowing the scope of your project to balloon can cause a team to lose sight of the project objective and lead to project failure. As a project’s scope increases linearly, its complexity tends to increase geometrically. It is therefore in our best interest to keep our projects as narrowly-focused as will yield significant benefits. Scope Creep 34 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. There is a marked tendency at the outset of a Lean Six Sigma project to attempt to do too much, to solve a problem so large and so profound that the effort involved will be enormous. We call these types of initiatives “boiling the ocean” projects, as they are likely to fail no matter how many resources are employed to work on them. IF YOUR PROJECT...  Requires a project team of 6 or more  Requires either several pages of detailed process mapping or process blocks which are broad and cross-functional  Contains a problem statement which is not specific to one issue  Has multiple Ys or customer requirements  Does not have a clear start and end point  Involves multiple Champions (and/or Sponsors) from the highest levels of the business  Requires more than a year of time to complete start to finish  Encompasses multiple Lean Six Sigma projects REDUCE THE PROJECT SCOPE! Guidelines to Project Scope 35 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. A problem which occurs far less frequently in Lean Six Sigma projects than “boiling the ocean” projects, is the project that is so small in scope that it doesn’t yield significant benefits or organizational impacts. If your project is too small in scope, it may not be worth the investment of resources necessary to achieve its potential benefits. IF YOUR PROJECT...  Is not related to a strategic business imperative  Has little or no impact on your customers  Project savings < cost to implement  Drives improvements which could be implemented instantly without issue  Serves only to justify “common sense” approach to problem INCREASE THE PROJECT SCOPE! Guidelines to Project Scope 36 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. To properly re-scope your project:  If the scope needs to be decreased: reexamine your process map, business case, and problem statement and consider breaking the project into manageable pieces  If the scope needs to be increased: reexamine your process map, business case, and problem statement and cast your net wider for potential improvements Changing the Scope of Your Project 37 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Claims Processing Center Area of Focus: New Claims Processing Process Includes:  Claims Queue  Initial Claims  Reimbursement Start: New claim is received from customer Stop: Claim is approved and reimbursed or claim is denied Excludes:  Denied Claims  Customer Complaints Pharmaceutical Publications Area of Focus: Publication Creation and Distribution Process Includes:  Articles, Flyers, Marketing Materials  Review  Distribution Start: Publication order is received Stop: Publication is distributed Excludes:  Publication Planning Project Scope Examples 38 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Identifies all of the people that need to be involved on the project team  Includes both formal members and satellite team members (members involved in critical decisions, may help on key team deliverables but not serve as a formal team member)  Identifies the resource’s functional role (VP Sales) in the organization and their role on the project team (Champion)  Lists the anticipated amount of time the resource will spend on the project (hours per week)  Should be approved by the Champion and direct managers of employees that will participate on the project prior to kick-off Project Resources 39 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  A high level project plan with start and completion dates for each phase  Critical points in the DMAIC process where progress is reviewed  Are reviewed at tollgate reviews  Negotiated with Champion/Process Owner based on  Scope of project  Complexity of project  Existence of relevant data  Amount of resource allocation Project Milestones 40 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Guidelines for Milestones: Dates should be tied directly to the DMAIC phases. Project plan and timeline should be aggressive but realistic. Should be approved by all team members and Champion and updated regularly. Copyright © 2016 Acuity Institute LLC. All rights reserved.  Most projects evolve, few are cast in stone from the beginning so the charter is a living document  In each phase of DMAIC as you gather more data, the information in the project charter can be further refined and updated  Be open to revising the scope, problem statement, and goal statement as the team makes progress and learns more about the process they are improving  Check with your Champion before making substantial changes to the charter Things to Keep in Mind when Developing a Project Charter 41 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. PROJECT DESCRIPTION Business Case The Customer Inquiry process is an important touch point with our customers. Therefore, one of our strategic objectives is to ensure the customer inquiry process is consistent in meeting our customer’s needs. Customers have indicated that our customer inquiry process needs improvement. Currently, there is no consistent approach or standard to handling customer inquiries. The handling and response to customer inquiries varies a great deal from one customer service representative to another. This lack of consistency leads to inaccurate handling of customer inquiries, rework, increased customer complaints, and ultimately lost customers Problem Statement Customer inquiries account for 65% of incoming claims calls. Currently, our response time to these inquiries varies from 2 hours to 5 days. In addition, approximately 10% of inquiry calls are call backs from customers who have not received follow-up from their initial call. These problems are leading to customer dissatisfaction with our services and ultimately loss of business Project Goals Reduce the response time <1 day and eliminate call backs from customers by January 15th Estimated Benefits ($$) Approximately $500K in hard savings (line charges, vendor charges) and $1.2MM in soft savings (people time) Project Scope Area of Focus: New Claims Processing Process Includes: Claims Queue, Initial Claims, Reimbursement Excludes: Denied Claims, Customer Complaints Start Point: New claim is received from customer Stop Point: Send notification to customer Project Charter Example – Processing Center 42 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Pay particular attention to the measurable elements of the example above. The problems and benefits are concise and easily understood by the organization. Copyright © 2016 Acuity Institute LLC. All rights reserved. Project Resources Team Members Function in the Business Project Role Time Dedicated to Project (Hrs/Week) Chris Matthews Claims Service Rep Black Belt / Green Belt 20 Donna Hillary Accounts Reimbursement Team Member 5 Jason Whitley Customer Service Rep Team Member 5 Clyde Mahoney Risk Assessment SME 2 Kristine Swanson Quality MBB 2 Suzy Maculvey VP, Claims Champion 1 Additional Support Finance, IT (resources to be named later) Project Milestones Milestone Phase Start Date Completion Date Define January 1st February 14th Measure February 11th In Progress Analyze March 23rd April 9th - To Be Completed Improve April 10th May 29th - To Be Completed Control May 30th June 30th - To Be Completed Closure July 1st August 1st - To Be Completed Project Charter Example – Processing Center 43 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Pay particular attention to the measurable elements of the example above. The problems and benefits are concise and easily understood by the organization. Copyright © 2016 Acuity Institute LLC. All rights reserved. Objective  Practice applying SMART criteria to various goal statements from project charters. Instructions  Utilize the SMART criteria to identify which of the following goal statements on the following page are:  Specific  Measurable  Attainable  Relevant  Time Bound  Identify which element(s) of the SMART criteria is missing, if any.  Prepare your findings. SMART Project Charter EXERCISE 44 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 1. Reduce credit card resolution time by 75% in 2 weeks. In addition maintain credit card resolution accuracy. 2. Improve the meeting room scheduling process. 3. Reduce failed installs by 30% 4. Achieve an 80% or greater small business customer retention rate by year end. 5. Improve profitability. 6. Reduce late and early appliance deliveries in 6 months from the project kick off date. 7. Reduce contract processing cycle time by 40% and reduce required resources by 10% by July 06. 8. Decrease costs by end of year. SMART Project Charter EXERCISE 45 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Please Do Not Proceed Forward SMART Project Charter EXERCISE 46 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes When you see this symbol, please do not continue forward in the materials. Copyright © 2016 Acuity Institute LLC. All rights reserved. 1. Reduce credit card resolution time by 75% in 2 weeks. In addition maintain credit card resolution accuracy. (not attainable) 2. Improve the meeting room scheduling process. (not relevant) 3. Reduce failed installs by 30%. (not time bound) 4. Achieve an 80% or greater small business customer retention rate by year end. (no change) 5. Improve profitability. (not specific, not time bound, don’t know if it’s attainable because we don’t have enough info) 6. Reduce late and early appliance deliveries in 6 months from the project kick off date. (no quantifiable goal, by what percent?) 7. Reduce contract processing cycle time by 40% and reduce required resources by 10% by July 06. (no change) 8. Decrease costs by end of year. (not specific) SMART Project Charter – Answers EXERCISE 47 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  Understanding of what a project charter is and why it’s important  Steps and components for drafting a project charter  Tips and traps for drafting each component of a charter  How to calculate estimated project benefit  Gained experience applying effective criteria to developing the charter  How to identify when you need to change your project scope Summary of Section 48 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove Project Charter Development Project Selection Define – Project Charter Lean Six Sigma Training Effective Teams 49 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. By the end of this section, you will be able to:  Know the keys to successfully operating as a team  Identify critical team roles and responsibilities  Identify team member profiles and interpersonal styles  Understand guidelines to communicate effectively within the team  Understand the importance of utilizing a conflict-resolution process  Understand team decision making methods Overview – Objectives – Key Topics 50 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. “SMART” Charter Project Goals and Objectives Clearly Identified Roles & Responsibilities Who does What Team Procedures How does the Team Complete Deliverables Effective Teams Key Characteristics of Effective Teams 51 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Roles and responsibilities are clear  Members agree on how to work together and make decisions  Members leverage differences in team member profiles and interpersonal styles  Communication is clear and honest among the team  Members use a conflict-resolution process Keys to Operating as a Successful Project Team 52 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Formalized team roles enables the team to effectively avoid the “too many chiefs” syndrome (too many leaders).  Team members work more effectively when they know what is expected of them  Having clear roles and responsibilities creates an environment of accountability  Lack of clear roles can cause expectations to not be met which increases team conflict  Roles that are not clearly defined lead to work overlap or significant gaps, resulting in rework or catch-up effort Importance of Team Roles and Responsibilities 53 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Black Belt / Green Belt  Provide mentoring and Lean Six Sigma tool expertise support to team  Validate that the team is following DMAIC process  Facilitate team communication internally and with other teams and stakeholders  Work with team to overcome roadblocks and sources of resistance  Keeps project team on track, coordinates team activities  Process Owner  Provide input and encourage the team  Attend critical team meetings when input on critical decisions is required  Takes ownership for the implementation of the process improvement and is accountable for process results after implementation Team Meeting Roles and Responsibilities 54 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Team Members  Come prepared to meetings  Complete tasks assigned and report back to the team  Support team and any consensus decisions by the team  Master Black Belt  Attend critical team meetings  Provides guidance and coaching to the Black Belt / Green Belt Team Meeting Roles and Responsibilities 55 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Facilitator (Usually Black Belt / Green Belt, but role can be rotated)  Creates team meeting agenda  Guides team through agenda, tests for consensus, and clarifies discussion points  Gather all team member’s input, ensures all are engaged and given the opportunity to participate  Schedules, arranges and conducts meetings  Timekeeper  Keeps meetings focused and on track  Helps maintain time limits on the agenda  Scribe/Recorder  Maintains shared files (electronic and paper)  Records meeting minutes and action items Team Meeting Roles and Responsibilities 56 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What is a team member profile?  How individuals translate information  How individuals accomplish key tasks  How individuals interact with others  How individuals influence others  How individuals react to change Understanding Team Member Profiles 57 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Stays clear of confrontation  Avoids difficult or challenging discussions  Risk adverse  Calls for caution and is often critical  Tentative or restrained  Often waits until the last minute to complete deliverables/tasks  Hesitates in diving in due to fear of failure  Works well under pressure  Seeks alternative ideas  Does not pay much attention to detail  Characterized by originality and expressiveness AvoiderCautiousProcrastinatorCreative  Often positive about things  One who usually expects a favorable outcome  Requires information and data to make decisions  Focuses on details  Often over analyzing things  Skilled at planning  Linear in thought process  Enjoys the role of “Gatekeeper”  Often completes deliverables ahead of schedule  Often takes control of situations  Constantly pushing for results  Sometimes individual goals dominate situations OptimistAnalyzerTacticianDriver Common Individual Behaviors 58 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Review the Individual Profiles among your team:  Do individuals share common behaviors?  If yes, should this be a concern?  If no, should this be a concern?  What behaviors may have a tendency to contradict each other?  What should the team do about this?  How can the team work effectively together given the various Individual Profiles? Developing a Team Profile Team Profile 59 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Good communication practices for all team members:  Honest, candid team feedback  Balance positive and negative feedback  Support ideas with examples, information, data or pictures  Listening actively  Common communication mistakes to avoid:  Inadequate time for discussion  Faking understanding  Not paying attention to body language Poor or ineffective communication can hinder team effectiveness Team Communication Considerations 60 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Conflict is a normal part of team development, but here are some guidelines….. Tolerate conflict when it:  Enables ideas to be tested and built upon and is proving to be constructive  Allows team members to gain a deeper understanding of one another  Increases creative thought  Increases involvement Intervene to resolve conflict when it:  Team members become more concerned about “winning” the conflict than communicating their point of view  Polarizes the team  Involves personal insult or attack  Disrespects the values of the organization Team Conflict 61 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Talk through issues until a higher-level solution is found and is supported by all team members  Openly discuss personal differences of opinion, dealing with them directly but tactfully  Listen carefully to each person/group’s point of view  Clarify the core issue by separating areas of agreement from areas of disagreement, then try to build small agreements to reach a compromise  To calm the agitation, have disagreeing team members write down their issues and ideas before discussing with the group  Consider taking members who conflict outside of the meeting to mediate the disagreement and come to a compromise Team Conflict Management and Resolution Techniques 62 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Method Description Effect Non-intervention Avoids/Withdraws from addressing situation Does not solve problem Smoothing De-emphasizes conflict, attempts to smooth over Short-term solution, can resurface later Compromising Giving up some things in exchange for getting other things Can provide resolution, but can cause resentment Forcing Forcing only one viewpoint High probability of conflict re- emerging, increased resentment Collaborating Incorporates multiple viewpoints to gain commitment from all Long-term resolution Confronting/ Problem Solving Examine alternatives to find resolution that meets everyone’s goals Provides ultimate resolution Methods to Deal with Conflict within the Team 63 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Decision making often requires time and effort to reach agreement within the team. There are many internal and external influences that can delay the decision making process. To assist you, the following are 5 potential options that a team can utilize in making a decision.  Decide and Announce  Delegate with Constraints  Consensus  Gather Input from the Team and Decide  Gather Input from Others (influencers) and Decide Decision Making 64 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  Know the keys to successfully operating as a team  Identify critical team roles and responsibilities  Identify team member profiles and interpersonal styles  Understand guidelines to communicate effectively within the team  Understand the importance of utilizing a conflict-resolution process  Understand team decision making methods Summary of Section 65 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove End of Lesson: Define – Project Charter Lean Six Sigma Training 66 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove Tollgate Reviews Meeting Planning Project Planning Define – Project Management Lean Six Sigma Training 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand the importance of effective project planning  Learn tools for effective project planning  Understand how to develop a DMAIC Milestone plan for your project By the end of this section, you will be able to: Overview – Objectives – Key Topics 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 1. When is the project going to end? 2. What deliverables and tasks do I have to complete before the project is completed? 3. Who is going to own completion of the project deliverables? 4. How are the Lean Six Sigma deliverables and tasks linked to one another? 5. How will the team members and other project resources allocate their time to the project? 6. When are critical milestones supposed to be met? Effective planning early in the project will help answer the following questions: Why Invest Time Planning? 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Start Date Stop Date Milestone A Milestone B Milestone C Task B Task A Task C Task D Task E Task F Resources Aligned Typical Project Planning Process 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Project planning is a set of milestones and activities that ends in specific accomplishments.  Clear milestones and tasks  Start and end dates for each milestone, task, and sub-task  Resources aligned to tasks Milestones of Lean Six Sigma Project Planning Basics 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Milestones of Lean Six Sigma Milestones – are key phases of the project where major deliverables are completed and key decisions are made and approved by project stakeholders and management. Each phase of Lean Six Sigma is considered a milestone. Tasks – are the activities that are completed to reach the milestone. Tasks include Charter, SIPOC, VOC. Every project plan should also have sub-tasks. Sub-tasks are the detailed activities that the team will complete in order to finish the tasks. All sub-tasks should use a verb-noun format, e.g., complete, deliver, check, collect, etc. Note: Both milestones and tasks/sub-tasks have start and end points to keep the team aligned to the overall project timeline. Project Planning Basics 6 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Milestone Task Sub-Tasks Resources Completion Dates Predecessor % Complete Duration Project Planning Elements DMAIC Project Plan 7 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Project Planning Element Definition Resources The team members or other organizational resources who will be responsible for completing the tasks. Duration The time in days that the milestone, task, and sub- task is planned to take. This is based on the calculation of the start date and end date. % Complete The % complete of each milestone, task, and sub- task. (Completion % should be updated regularly as activities are completed on the project). Predecessor The task or sub-task that proceeds the noted task (A task marked with predecessors can not be completed until the other tasks are completed). Project Planning Elements Defined 8 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  The importance of effective project planning  Tools for effective project planning  How to develop a DMAIC Milestone plan for your project Summary of Section 9 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove Tollgate Reviews Meeting Planning Project Planning Define – Project Management Lean Six Sigma Training 10 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand the importance of effective meeting planning  Learn tools for effective meeting planning By the end of this section, you will be able to: Overview – Objectives – Key Topics 11 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Objective  Identify effective meeting challenges and barriers in your organization. Instructions  Identify current challenges and barriers to effective meetings in your organization.  Prepare your findings. Effective MeetingsEXERCISE 12 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Please Do Not Proceed Forward Effective MeetingsEXERCISE 13 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes When you see this symbol, please do not continue forward in the materials. Copyright © 2016 Acuity Institute LLC. All rights reserved. Discussion Effective MeetingsEXERCISE 14 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Effective meetings have the following characteristics:  The right people participating  Clear objectives  Understanding of objectives before meeting begins  Good facilitation of discussion, time, note taking  Good amount of breaks  Action items from meeting  Continuation from previous meeting(s) – if needed Meeting Planning Basics 15 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Agenda Template: Task Method Owner Time Agenda Review Review Desired Outcomes & Tasks
Minutes Review minutes from previous meeting
Presentation
Review
Agreement

Break (if needed)
Discussion
Brainstorm Ideas

Wrap/Up and Next Steps
1.Review Action Items
2.Review Next Steps
Present
Agreement

Team Meeting Agenda



Desired Outcomes:



Good Planning Starts with an Agenda
Team Meeting
Agenda
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Key Agenda Elements:
– Meeting location, date, time
– Participants attending
– Desired outcomes of the meeting
– Tasks to be completed
– Method to complete each task (discussion, presentation, brainstorming, review, etc)
– Time and owner for each task
– Action items and minutes from previous meeting

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 Meeting date, location, time, agenda with desired outcomes, and
materials that will be reviewed during the meeting should be sent to
participants at least 24 hours in advance of meeting
 Allow ample time for agenda planning (a solid, organized agenda is
key to having a successful, productive meeting)
 If difficult or challenging topics are to be discussed, meet with
participants ahead of time to get input and support for meeting
objectives
 Have participants confirm participation by accepting meeting request
or obtain verbal during one-on-one meeting
 Follow-up with completed tasks, next steps, and meeting minutes
should be sent out to participants no later than 24 hours after
meeting completion
Meeting Planning Tips
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The minutes should contain the following elements:
 Outcomes of the meeting
 Developed or updated materials
 Action items and owners
 Next steps
 Next meeting schedule – location, date, time if planned
Each meeting should be followed up with minutes which document what
was discussed during the meeting and captures key action items.
Meeting Minutes
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What you learned during this section:
 The importance of effective meeting planning
 Tools for effective meeting planning
Summary of Section
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Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove
Tollgate Reviews
Meeting Planning
Project Planning
Define – Project Management
Lean Six Sigma Training
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By the end of this section, you will be able to:
 Understand the purpose and importance of project tollgates
 Know the process and guidelines for project tollgate reviews
 Identify key deliverables required for each project tollgate review
 Understand important considerations for tollgate review planning
Overview – Objectives – Key Topics
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DEFINE
MEASURE
ANALYZE
CONTROL
IMPROVE
A tollgate review is a checkpoint that ensures completion of each phase
of a DMAIC project.
Tollgate Purpose
DMAIC Tollgate
Presentation
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 Sponsor (mandatory) – actively engaged in representing, supporting and
questioning the data and team members.
 MBB (mandatory) – Sets expectation of tollgate process and objectives to
leadership. Engaged in supporting the team as needed.
 Black Belt / Green Belt (mandatory) – leads presentation to leadership
and is overall accountable for presentation development and desired
outcomes of tollgate review.
 Select Team Members (optional) – selected members actively participate
during review.
 Champion (optional) – actively engaged in questioning the team for
completion of required tasks/objectives for each phase. Projects with cross-
team dependencies would have other teams’ champions participate.
 Process Owner(s) (optional) – may attend all phases, but required for
Improve and Control phases.
Who Attends the Tollgate?
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DMAIC Deliverables for Tollgates
Define Measure Analyze Improve Control
Project Charter
Project Management
Project Plan
Process Definition
SIPOC
As-Is Process
Map
Quick Win
Identification
Stakeholder
Management
Stakeholder Map
Stakeholder
Management Plan
Communication
Plan
Voice of Customer
Customer
Identification
VOC Research
Plan
Kano Analysis
CTQ Identification
 Root Cause Analysis
Affinity Diagram
Fishbone Diagram
and/or 5 Why’s
Lean Process
Analysis
Lean Tools and
Measures
Graphical Data
Analysis
Histogram
Pareto Chart
Box Plots
Multi-vari
Correlation
Analysis
Statistical Data
Analysis
Linear Regression
Multiple
Regression
Root Causes
Identified
Quick Win
Identification
Identify Measures
X/Y Matrix
Data Collection
Operational
Definitions
Measurement
Systems Analysis
(MSA)
Data Collection
Plan
Describe and Display
Data
Histogram
Pareto Chart
Pie Chart
Run Chart
Control Charts
Baseline Performance
Sigma
Performance
Yield
Process
Capability
Quick Win
Identification
Identify and Select
Solutions
Generate Solutions
Benchmarking
Solutions
Prioritization Matrix
Solution Selection
Matrix
To-Be Process Map
Financial Impact of
Solutions
Cost/Benefit Analysis
Risk Planning and
Testing
Failure Modes and
Effects Analysis
(FMEA)
Pilot Plan
Implement Solutions
Multi-Generational
Product Plan (MGPP)
Implementation Plan
Stakeholder
Management
Project Storyboard
Process Control
Control Charts
Process
Monitoring Plan
Dashboard
Response Plan
Project
Documentation
Process
Procedures
Replication
Opportunities
Solution Transfer
Plan
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In addition to the DMAIC deliverables, teams should be prepared to
review the following throughout the tollgate process:
 Open issues/barriers for project
 Action items from previous tollgate
 Decisions from previous tollgate
 Next steps for project
Define Measure Analyze Improve Control
DMAIC Deliverables for Tollgates
25
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 Business Case is aligned with strategic objectives
 Problem Statement and Goal Statement are clearly
defined and measurable (SMART)
 Resources are identified and have been approved
 DMAIC timeline is realistic
 All segments have been completed
 Relationships of S-I-P-O-C are clearly defined
 Process start and end points are scoped properly for
project
 Segments contain enough granularity for proper scoping
and identification of relationships.
Project Charter
SIPOC
As-Is Process Map
 Process map reflects the true “as is” process
Was developed and validated with subject matter experts
 Is at the appropriate level of detail to highlight quick win
opportunities
Define Tollgate Planning
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 VOC research plan is documented and contains
necessary detail (customers, method, information to be
gathered, resources)
 Customers have been selected that can provide feedback
to problem being fixed
 Clear link between customer issues to needs to CTQ’s
 CTQ’s are measurable and related to problem statement
in charter
 Project plan contains all necessary milestones, tasks, and
sub-tasks to complete project
 Timeline is realistic for project
 Resources are aligned to tasks
VOC/CTQ’s
Project Plan
 All customer/project/individual groups have been identified
 Stakeholder Map, Stakeholder Management Plan
 Communication methods and timings are relevant for each
customer/project/individual group
Stakeholder
Management Plan
Define Tollgate Planning
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 Ensure coordination of
dependencies among all
transition projects
 Share best practices/lessons
learned
 Remove organizational barriers to
team success
 Request funding to move forward
where applicable
 Reward and recognize the team
efforts
 Check for consistent understanding
of the project and its objectives
 Monitor team progress for cost and
schedule compliance
 Alignment to company strategy
 Ensure data quality/integrity
 Identify additional resource needs
 Assist team with escalation of
issues and risks
Sponsor’s Guide for Tollgate Reviews
Be Prepared – Sponsor’s Tollgate Guidelines
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 Challenge the purpose and objectives of the project
 Determine if project goals are achievable and realistic
 Ensure alignment between business case, objectives and problem
statement
 Assess the impact on stakeholders
 Determine if right customers have been included in VOC
 Remove barriers to success
Champions Guide for Define Tollgate Review
Be Prepared – Champions Tollgate Guidelines
29
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 The purpose and importance of project tollgates
 The process and guidelines for project tollgate reviews
 Key deliverables required for each project tollgate review
 Key considerations for tollgate review planning
What you learned during this section:
Summary of Section
30
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Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove
End of Lesson: Define – Project Management
Lean Six Sigma Training
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Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove
Process Mapping
Quick Wins
SIPOC
Process Overview
Define – Process Definition
Lean Six Sigma Training
1
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 Understand the levels of processes in an organization
 Learn the difference between core and enabling processes
 Understand what an organizational process model is
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
2
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A process is defined as a repetitive and systematic series of actions
or operations whereby one or more inputs from suppliers is used to
achieve an output of value to the customer (internal/external)
Input Output
Process
Actions
Process Model
What is a Process?
3
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There are various levels to all organizational processes.
LEVEL 1 High-Level Organizational Process
LEVEL 2 Sub-Processes
LEVEL 3 Activities
LEVEL 4, 5 Procedures and Tasks
Process Levels
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There are multiple levels of process – from the highest level organizational process (30,000 foot view) to the task steps (“worm’s eye” view).
Organizational Process
An organizational process is a macro-process, or a bundle of several processes which result in providing the customer with a product or service. An organizational process is all the functions and sequence of activities (regardless of where they reside in the organization), policies and procedures, and supporting systems required to meet a marketplace need through a specific strategy. It includes all functions involved in the development, production, and provision of specific products or services to particular customers.

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Core Process
A core process is one of the major processes required in managing the operation and
providing day to day services to the customer.
These are processes that are seen as having greater value by external customers
Examples: Service Claims, Develop Product
Key enabling
Processes that support one or more
other processes, typically by supplying
indirect inputs; do not usually have
direct impact on the external customer
 Support the core processes and
enable a company to manage the
operation and provide day to day
services to the customer
 Enabling processes often direct or
tune other processes
Examples: Finance, Info Technology
Types of Processes
Core Process
Sub-Process Sub-Process
E
N
A
B
L
I
N
G
E
N
A
B
L
I
N
G
E
N
A
B
L
I
N
G
E
N
A
B
L
I
N
G
5
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A core business process is one which is:
 Closely linked to external customers at both the beginning of the
process and the end of the process
 Closely tied to the organization’s core competencies
 An integral part of the organization’s “identity” with
customers/markets
 Key to achieving strategic objectives
4.0
Authorize
Claim
3.0
Process
Contract
5.0
Pay
Claim
1.0
Develop
Product
6.0
Service
Customers
2.0
Distribute
Product
Criteria For Identifying Core Processes
6
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A key enabling process is one which:
 Typically supplies indirect inputs to the core process
 The impact, positive or negative on the core process(es) is
potentially significant
 Governs or “fine tunes” the core process
9.0
Legal
8.0
Human
Resources
10.0
Information
Technology
7.0
Finance
11.0
Risk
Management
Identifying Key Enabling Processes
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In an organization there are many enabling processes that exist in an organization. It is important to identify the “key” enabling processes or those that are most critical or impactful to the core processes for two reasons:
1) An enabling process can have an impact on the process the improvement team is focused on improving.
2) A DMAIC project can also be conducted on an enabling process as well as a core process.

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 An organization is a chain of interwoven core and enabling processes, each of
which contributes to the product or service provided to the external customer.
The Process Chain is only as strong as its weakest link
Process Chain
Your Organization
CoreCoreCore
enabling enabling enabling
Internal
Suppliers /
Customers
Product/Process
Requirements
Product/Process
Outputs
8
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Each link represents a process, or work group within the organization. It may often be only the last link (process) that directly serves the external customer. Yet the product or service you provide to the next internal process customer has an effect on the external customer.
�

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CORE PROCESSES
KEY ENABLING
PROCESSES
2.1
Qualify
Customer
2.3
Complete
Census
2.2
Sell Product
1.3
Price
Product
1.2
Design
Product
3.1
Review
Packet
3.3
Audit
Contract
3.2
Enter
Contract
4.1
Evaluate
Eligibility
4.3
Authorize
Claim
4.2
Adjudicate
Claim
5.1
Review
Claim
5.3
Distribute
Payment
5.2
Settle
Claim
6.1
Route
Inquiry
6.3
Address
Inquiry
6.2
Gather
Information
7.1
Cash
Management
8.1
Manage
Employees
8.2
Recruit
Employees
9.1
Product Filing/
Approval
10.1
Manage
Network
11.1
Monitor
Risk
10.2
Deliver Tech.
Solutions
4.0
Authorize
Claim
3.0
Process
Contract
5.0
Pay
Claim
1.0
Develop
Product
6.0
Service
Customers
2.0
Distribute
Product
1.1
Collect Market
Data
9.0
Legal
8.0
Human
Resources
10.0
Information
Technology
7.0
Finance
11.0
Risk
Management
Example of Core & Enabling Process Model
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What you learned during this section:
 Understand the levels of processes in an organization
 Learn the difference between core and enabling processes
 Understand what an organizational process model is
Summary of Section
10
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Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove
Process Mapping
Quick Wins
SIPOC
Process Overview
Define – Process Definition
Lean Six Sigma Training
11
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 Understand the relationships of a process
 Define the suppliers, inputs, process, outputs, and customers
of a process
 Identify the boundaries of a process
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
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 To develop a high-level view of the process
 Developing an accurate “picture” of the process is
made easier by first understanding its elements
 To avoid scope creep
Purpose of Developing a SIPOC
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Effective improvement requires information from the
entire Supplier-Customer Relationship
Elements Common to All Processes
Suppliers Inputs Process Outputs Customers
S I P O C
Process Map
SIPOC
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All company activities constitute a process. A process is defined as taking one or more inputs from suppliers and creating outputs, whether these are a service or product. The graphical display of these activities is known as process mapping.
Understanding business processes is made easier by first identifying the key components of a SIPOC: Suppliers, Inputs, Process, Outputs, and Customers.

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The products or services resulting from a process, which address a
customer’s need
Output
A process is a collection of activities that takes one or more kinds of
input and creates output that is of value to the customer
Process
Materials, resources, data, information, guidelines required to
execute your process
Input
The limits of a particular process, usually identified by the inputs and
outputs, identifies where the process starts and stops
Boundary
Whoever receives the output(s) of your process – may be internal or
external
Customer
Whoever provides the inputs to your processSupplier
SIPOC Elements
15
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1. Work backwards when completing the SIPOC
2. Start by identifying the customers first, then the process outputs
3. Identify the process start and stop points, then complete the remaining steps
4. Identify process steps – rapid brainstorming
 Use your sticky notes
 One step per note
Write big
 Don’t worry about order
 Don’t discuss in detail
 Begin all steps with a verb
5. Finally, define the inputs and suppliers
6. The suppliers may be the customers as well
Steps to Complete a SIPOC
16
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Suppliers Inputs Process Outputs Customers
Customer
Collection
Agency
Customer
Complaint
Billing
Question
Statement
Question
Renewal or
New
Account
Set-up
Credit Card
Resolution
Accurate
Statement
Credit /
Debit to
Account
Credit Card
Customer
Collection
Agency
Accounts
Payables
Accounts
ReceivableUpdate Customer Data
Start Boundary
Stop Boundary
Receive
Customer Call Gather Data
Review History Identify Problem
Resolve
Problem
Call Center SIPOC Example
SIPOC
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In this call center example, all components of the SIPOC chain are identified and lead into the next segment, creating a visual depiction of the process stream. Only the high-level process steps are identified in the SIPOC.

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What you learned during this section:
 The relationships of a process
 The use of SIPOC to define suppliers, inputs, process, outputs,
and customers of a process
 The identification of boundaries of a process
Summary of Section
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Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove
Process Mapping
Quick Wins
SIPOC
Process Overview
Define – Process Definition
Lean Six Sigma Training
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 Understand the basic process mapping shapes
 Document the detailed steps and activities of a process
 Understand the concept of deployment flow charts
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
20
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Definition:
A process map is the graphical representation of the steps, actions, and operations that
constitute a process
Purpose:
In order to control or evaluate a process the team needs to have a clear picture of the current
process
Who develops it:
The team works with those who perform the process itself to map out the process
Basic Process Mapping Shapes
Start / Stop Point Task / Activity Decision Point Direction of Flow
What is a Process Map?
21
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Once the primary segments of the process are identified through the SIPOC, the team can further drill down into the detailed process steps.
Detailed process mapping is necessary to fully understand the flow and tasks that occur to produce the outputs to the customer. The process mapping shapes identified above are standard for most processes, however additional shapes are available for different processes.
Tips in sub-process mapping:
Involve the people who work directly in the process when completing the map.
Clarify the boundaries of the process first by identifying the start and stop points.
Brainstorm the steps that occur between the start and stop points using verbs (Review, Determine, Contact).
Combine and eliminate duplicate steps.
Organize steps into logical order using the direction of flow arrows.

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 Describe how activities are being done
 Identify where a team should measure in a process to evaluate
performance
 Investigate where problems might occur
 Aid in the re-design or improvement of a process
 Help all stakeholders understand their part of the process and how it
fits into the process as a whole
 To perform gap analysis against regional processes or potential
duplicate processes
 Aid in training new people
Process Mapping Uses
22
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Example of “As-Is” Process
23
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Basic flowchart
Deployment flowchart (“swim lanes”)
Processing Administration Adjusters Payables
Start
Activity
Activi
ty
End30 5
70
20
Alternate Path flowchart
Activity
Activity
Types of Process Maps
24
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 Indicates specific steps that
occur in a process
 Indicates decision points
 Illustrates rework loops,
bottlenecks, etc.
Clear start
point
Clear stop
point
Number
each step
Represents
Decision Point
1.
Activity
Yes
No
Yes
No
2.
Activity
3.
Activity
Basic Flowchart
25
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Key:
Percentage of time
task is done via
phone or e-mail
Task
Phone
70
30 E-mail
 Indicates percentage of
Time one path of a process
is taken over another path
Start Activity
Activity
End30
70
Alternate Path Process Map
Activity
26
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In this technique, alternative “paths” are noted by split arrows. Teams can then note the relative percentages of time/incidents the process follows each path. This approach helps in the study of workload issues.

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Ordering
Dept.
Processing
Dept.
Delivery
Dept.
Customer
Start
Activity Activity
End
Decision
Activity Activity Activity
Activity Activity Activity
Decision Activity
Horizontal Deployment Flowchart
27
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Deployment Process Maps are useful for defining large or complex processes. The number of functions (or “bands”) are easily defined and can be layered vertically or horizontally. Initial horizontal maps are often done on walls so that time can stretch off to the right as far as necessary. Horizontal maps have the advantage that they can show the entire process in a continuous flow.
There are many software solutions that can assist you in creating process maps (example: Microsoft Visio). PowerPoint can also be used to create process maps.

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What you learned during this section:
 The basic process mapping shapes
 How to document the detailed steps and activities of a
process
 The concept of deployment flow charts
Summary of Section
28
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Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove
Process Mapping
Quick Wins
SIPOC
Process Overview
Define – Process Definition
Lean Six Sigma Training
29
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 Learn how to identify quick win opportunities
 Practice applying quick win criteria
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
30
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Utilizing Lean Six Sigma techniques (i.e. process mapping) often uncovers many easy
and obvious improvement opportunities. These are referred to as “Quick Wins”. Teams
should be prepared to react to these opportunities and implement changes to the
process.
The criteria for defining an improvement opportunity as a “Quick Win” are:
 Easy to Implement – the improvement does not require significant planning and
coordination
 Reversible – the improvement is reversible (i.e. it is easy to go back to the original
process)
 Fast to Implement – the improvement does not require a significant amount of time to
implement
 Within the Team’s Control – the scope of the improvement is within the control of the
Team or Sponsor (i.e. the improvement does not cross multiple departments/areas within
the business)
 Cheap to Implement – the improvement does not require a significant amount of capital
and/or resources to implement
Quick Win Opportunities
Quick Win
Identification
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We also recommend using “Lean” tools to identify Quick Win Opportunities. Lean tools will be introduced later in this course.

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What you learned during this section:
 Understanding how to identify quick win opportunities
 Understanding of how to apply the quick win criteria
Summary of Section
32
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Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove
End of Lesson: Define – Process Definition
Lean Six Sigma Training
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Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove
Communication Planning
Stakeholder Analysis
Define – Stakeholder Management
Lean Six Sigma Training
1
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 Identify the Stakeholders for the projects
 Understand how to overcome resistance to change
 Develop a Stakeholder Management Plan
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
2
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Stakeholder Management should be done early and throughout the
initiative to continually influence key individuals. The process for
managing stakeholders is the following:
Identify
Stakeholders
Develop
Stakeholder Map
Develop
Stakeholder
Management Plan
Step 1 Step 2 Step 3
The Process for Managing Stakeholders
3
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Anyone who is
affected by the
process or product the
project team
is working
on.
Who is a Stakeholder?
4
Internal
Customers
External
Customers
Suppliers
Customers
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Identify
Stakeholders
Step 1
External Internal Suppliers
1. 10. 19.
2. 11. 20.
3. 12. 21.
4. 13. 22.
5. 14. 23.
6. 15. 24.
7. 16. 25.
8 16. 26.
9. 18. 27.
Identify All
Stakeholders
The Process for Identifying Stakeholders
Stakeholder
Identification
5
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Lean Six Sigma will be driven by the support from key individuals throughout the
organization. The project team’s communication and influence strategy needs to
focus not only on the individuals engaged directly in the initiative, but those
individuals who can have an impact on the success of implementation. These
individuals are often referred to as stakeholders. Stakeholders include executive
leadership, managers, process owners, or any individuals who have a “stake” in
the outcome of the teams efforts.
Team Members
Project Sponsor
Process Owner
Middle Management
Executive Leadership
Front Line Employees
Enabling Functions Supplier
Stakeholder Influence
6
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Step 2
Develop
Stakeholder Map
Impact of Change (from the Project)
In
flu
en
ce
o
n
Pr
oj
ec
t
Lo
w
M
ed
iu
m
H
ig
h
1. Place Stakeholder #s on the Stakeholder Map
2. Add Stakeholder Position
Stakeholder Position
Enthusiast
Neutral
Opponent
Low Medium High
9
4
5
6
8
3
7
6
1
2
The Process for Managing Stakeholders
Stakeholder
Map
7
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Give those most affected by change the
responsibility for implementing the change
Overcoming Resistance
8
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Planning to Deal with Resistance
Being aware of potential areas of resistance is a critical issue for the Lean Six Sigma project team. As a team progresses through its implementation, it should continuously identify ways in which resistance could occur.
One of the best ways to overcome resistance is if those impacted by the change take ownership for implementing the change. Not only does the project team have to deal with issues and consensus within the team, but it also has to seek a teamwork relationship with stakeholders, frontline employees, and managers. Ownership forces the resistance to be dealt with and resolved.

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Common Sources of Resistance
Determine Sources Of Resistance
Technical
Example: Lack of
skills to complete
required tasks
Cultural
Example: Locked into
the way it has always
been done
Political
Example: Difficulty
managing power and
authority
9
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Step 3
Develop
Stakeholder
Management Plan
Great action plans identify what, why, who, when and how. Preparing your
team’s stakeholder management plan will enable proactive change
management. The key elements of a stakeholder management plan are:
Stakeholder Who does the team need to focus on?
Objective What is the purpose/desired outcome of the action?
Action How will the purpose/desired outcome be achieved (i.e. meeting)?
Completion Date When will the action be completed?
Owner Who is responsible for following through with the action?
The Process for Managing Stakeholders
Stakeholder
Management
Plan
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What you learned during this section:
 How to identify the Stakeholders for your project
 Understand methods to overcome resistance to change
 How to develop a Stakeholder Management Plan
Summary of Section
11
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Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove
Communication Planning
Stakeholder Analysis
Define – Stakeholder Management
Lean Six Sigma Training
12
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 Understand key considerations to making communication
effective
 Understand the key elements of a Communication Plan
 Develop a communication plan
 Understand how to create an effective Elevator Speech
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
13
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The #1 Reason communication efforts fail to achieve the level of
understanding and influence intended is due to:
Emails, large meetings, print announcements, and
even videos alone tend to:
 Be ignored
 Fail to engage recipients in active thinking
 Focus on “What’s in it for the company” rather
than credibly persuade “What’s in it for the
individual”
Method of Communication
Effective Communication
14
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 Have a clear message
 Involve and engage your audience
 Be candid
 Demonstrate, don’t lecture
 Follow up
Communication of the improvement project message should be
80% Face to Face meetings
80%
20%
Face to Face
Company Wide
80%
20%
Face to Face
Company Wide
Project Communication
15
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 Organizational communication is a change agent
The purpose of communication is not just to convey information, but to change
behavior. Project communication should change behavior by building support of
and buy-in toward the project’s objectives.
 Communication is a two way process

Listening and encouragement of feedback is critical to understanding whether
project communication has been effective.
 Craft communication in the interests and language of the target audience

To be effective, the message should be focused on the receiver of the
communication’s interests in both content and context.
 Communication must be compelling and continuous

To be compelling consider creative ways to deliver your message. To be
remembered and internalized, communication needs to be continuous and
consistent.
Communication Considerations
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A Communication Plan should be developed early in the project. The basic steps and
components are as follows:
Target Audience:
 Identify the project audience(s) – include internal and external stakeholder groups
The “What” (message):
 Assess information needs – determine what groups need to know, want to know, and
expect. NOTE: Utilize project resources only on communicating information that
contributes to success or where a lack of communication can lead to failure
 Identify key project messages, announcements, that need to be delivered on a
recurring basis
When:
 Define when communications will be provided
The Method:
 Identify the best media and methods available to communicate, e.g. face to face
meetings, presentations, email – remember people absorb information in different ways
Developing a Plan – What to Include
Communication
Plan
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Owner:
 Assign responsibilities for creating and delivering the various types of communications
Approval Process:
 Document the approval process needed for any of the communications
Feedback Loop:
 Create internal and external feedback loops to help evaluate the effectiveness of
communications
Schedule tasks:
 Schedule the work of communications and related dependencies into the project
schedule to ensure they are part of the overall plan
Update Process:
 Define a process for updating/changing the Communications Plan
Developing a Plan – What to Include
18
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Audience What When Method Owner Required
Approval
Feedback
Loop
• Team
• Process
owner
Project
Kickoff
Project
start date
(June 5th)
Meeting Black Belt /
Green Belt
Sponsor Plus/delta
All
employees
Major
Milestone
Announce-
ments
As
completed
Email Black Belt
/Green Belt
Sponsor Survey
Questions
Communication Plan Example
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 Make the Communication Plan readily accessible to the project team members.
 Make sure project stakeholders buy into the Communication Plan.
 Scale the Communication Plan to fit the complexity, duration, and size of the
project.
 Update the Communication Plan when significant changes occur.
 Periodically ask team members if they are getting the right information at the right
time.
 Enter communication tasks in the project plan.
 Be specific when assigning communication tasks – list responsible person(s).
 Get proper approval before disseminating communication, when applicable.
Developing a Plan – For Best Results
20
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What is an elevator speech?
 A tool used for helping team members practice articulating the project
vision, purpose and objectives in a clear, concise and meaningful way.
 It’s a simple but effective communication method to help build project
support and buy-in from all members of the organization.
Elevator Speech
21
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Steps to develop an elevator speech for your project:
 Imagine a chance meeting of a project team member with a key project
stakeholder on the elevator. The project team member has five floors (90
seconds) to articulate to the stakeholder the project vision and objectives.
 Identify the key 4-7 bullet points that should be communicated to the
stakeholder while on the elevator ride. Some possible themes:
 Problem statement/opportunity
 Benefit to the organization
 Current project status
 What action others can take (show support, help communicate)
 Team members practice reciting the elevator speech so the message is
delivered consistently among all members.
Elevator Speech
22
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What you learned during this section:
 Key considerations to making communication effective
 The key elements of a Communication Plan
 How to develop a communication plan
 How to create an effective Elevator Speech
Summary of Section
23
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Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove
End of Lesson: Define – Stakeholder Management
Lean Six Sigma Training
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Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove
How to Translate VOC into CTQ’s
What is Voice of Customer (VOC)
Who is the Customer
Define – Voice of Customer
Lean Six Sigma Training
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 Understand the definition and types of customers
 Identify and apply methods to segment customers
 Understand methods to prioritize customers
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
2
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It is our customers who determine whether or not our products and services
and our work output are considered quality or not. Therefore being focused
on the customer’s wants, needs and expectations is a central focus of Lean
Six Sigma.
Customer
Business/Shareholder
The Customer’s Role
3
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Identify
Customers
 Review Charter
and SIPOC
 Define
customers
 Segment
customers
Develop
VOC
Research
Plan
 Identify research
methods
 Develop
research plan
 Develop VOC
questions
Gather
Customer
Issues /
Needs
 Collect VOC
 Organize
customer issues
into needs
Translate
Issues /
Needs to
CTQ’s
 Translate needs
into
requirements
(CTQ’s)
 Set specification
limits
Voice of Customer (VOC) Process
4
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The Recipient of a Product or Service
External
Product/Service
Internal
Product/Service
Customer
Downstream in Process
Leadership/Management
Associates
Clients
End-Use Consumers
Regulators
Brokers
Shareholders
What is a Customer?
5
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While not every process will touch external customers directly, the more we can do �to make each process better, the more likely we’ll be able to exhibit “quality” to our customers in all we do. Remember, too, that “internal customer” partnerships are essential to smoothly-run processes.

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External Customers are groups or individuals external to the organization
who receive or are affected by our products and services.
Internal Customers are groups or individuals whose ability to perform a job is
impacted by the quality of products and services we provide to them, e.g.,
other processing departments, enabling departments (Finance), etc.
External
Customers
Direct Customers
Indirect Customers
Those who receive and use our
products and services.
Those who are affected by our
work, or who have authority over
us, but who may not actually use
our products or services
themselves, e.g., government
agencies, stakeholders, etc.
Definitions of the Types of Customers
6
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A process is a chain of internal suppliers and customers, each of whom
contributes to the product or service provided to the external customer.
The Process Chain is only as strong as its Weakest Link
Customer Process Chain
Your Organization
CoreCoreCore
enabling enabling enabling
Internal
Suppliers /
Customers
Product/Process
Requirements
Product/Process
Outputs
Customers
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Each link represents a process, or work group within the organization. It may often be only the last link (process) that directly serves the external customer. Yet the product or service you provide to the next internal process customer has an effect on the external customer.

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 It may be necessary to segment customers so customer research is focused
on the most important customers.
 Customers can be segmented by region, size, revenue, etc.
Region
Large
Medium
Small
Size of
Deal
Customer Segmentation
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If you have many different customers, segmenting them will help the team focus on the vital few and prioritize issues and needs (covered later in this section).
Examples include:
– Channel – direct vs. distribution
– Regional – North vs. South
– Price – high-end vs. low-end

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 A process may have many customers
 It is difficult to address all the needs of all the customers
 There is a need to focus on the vital-few key customers
 Customers who purchase the majority of products/services (external)
 Customers who provide the most revenue (external)
 Customers who use your output at a critical juncture in their process
(internal)
 Once needs are addressed for the vital few, the project team can then focus
on the needs of the next layer of customers
Why is it necessary to prioritize customers?
Prioritizing Customers
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Prioritization Matrix – Credit Union Example
5 = Major Impact of Customer on Criterion. 3= Moderate Impact. 1= Small Impact. 0= No Impact
Customer Criteria Total
Large Dollar
Transactions
Large Volume
Transactions
Loans Certificates of
Deposit
Money Market
Funds
Large
Commercial
Customers
5 5 5 5 3 23
Small
Businesses
1 1 3 0 1 6
Retail
Customers
3 5 5 1 1 15
Elderly /
Disabled
0 0 1 5 5 11
Tellers 0 3 1 1 1 6
Federal
Examiners
1 0 0 1 1 3
Prioritizing Customers
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What you learned during this section:
 The definition and types of customers
 Methods to segment customers
 Methods to prioritize customers
Summary of Section
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Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove
How to Translate VOC into CTQ’s
What is Voice of Customer (VOC)
Who is the Customer
Define – Voice of Customer
Lean Six Sigma Training
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 Understand how to develop a VOC research plan
 Understand methods to collect data around customer
requirements
 Develop effective VOC questions
 Learn how to organize customer feedback into customer
needs
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
13
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 A philosophy and approach of understanding the “voice” of customers through
continuous research
 The term used to describe stated or unstated requirements that customers
have of products or services
Voice of Customer (VOC) is:
Product/Process
Outputs
What do customers want?
How do customers communicate with us?
Why should we listen to our customers?
What is most important?
How are we doing?
Where can we improve?
Voice of Customer Defined
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Understanding customers requirements is critical if real achievement of project success is to be validated. Voice of Customer is a useful method for identifying the customers of the process (either internal or external) and their requirements.

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Identify
Customers
 Review Charter
and SIPOC
 Define
customers
 Segment
customers
Develop
VOC
Research
Plan
 Identify research
methods
 Develop
research plan
 Develop VOC
questions
Gather
Customer
Issues /
Needs
 Collect VOC
 Organize
customer issues
into needs
Translate
Issues /
Needs to
CTQ’s
 Translate needs
into
requirements
(CTQ’s)
 Set specification
limits
Voice of Customer (VOC) Process
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Focus Groups
Used to pull together a
group of similar customers
with a broad range of
opinions.
Surveys
Used as a comprehensive
data gathering technique.
Very valuable in gathering
and prioritizing
requirements.
Interviews
Used to ask probing
questions from one-on-one
sessions with customers.
Can be structured or
informal.
Market Research
Used to gather competitive
comparison data. This is
particularly useful if you want
to compare
strengths/weaknesses to
competitors.
Be a Customer
Used to gain first hand
experience from your
products and services as
your customers experience
them.
Customer Complaints
Used to gather initial issues
with products/services.
Usually come from a small
percentage of customers so
do not necessarily represent
majority of customers.
Research Methods to Collect VOC
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Complaints from Customers
Feedback from Internal Associate
Qualitative
InformationFrom
To QuantitativeInformation
Written Surveys
Telephone Interviews
VOC Progression
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The VOC process is the progression of taking qualitative feedback from customers and translating those into quantitative requirements. This process will lead the team through the necessary steps to ensure the requirements of the organization’s products and services are documented.

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1. Start Broad – What is important?
2. Get Specific – What does that mean?
3. Prioritize – How important is this?
Complaints
Requests
Observations
Focus Groups
 Interviews
Surveys
Requirements
Needs
Issues
The “Funnel” Effect for VOC Research
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Elements of a Customer Research Plan
Customer Segments
to be Contacted
Identifies the groups
(internal and external)
that VOC data will be
collected from
Information to be
Gathered
Identifies the specific
VOC questions to be
used for each group
Data Collection
Method
Identifies the medium for
collecting the VOC (face
to face interview, focus
group, survey)
Customers to Contact
Identifies the # from each
group (external) or
specific individuals
(internal) that data will be
collected from
Project Team Owner
Assigns who on the
project team is
responsible for collecting
the VOC
VOC Completed
Tracks when the VOC is
complete
Develop Customer Research Plan
VOC Research
Plan
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Conducting customer research can be very time consuming for a project team. The time to complete the research and gather all of the input depends on:
The number of customers being researched
The availability of the customers
The number of team members who will conduct the research
The time available of the team members
Each element of the Customer Research Plan must be documented and agreed to by the team and Sponsor/Champion.

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 Clearly define the objectives of the survey (use qualitative
information for developing objectives)
 Draft questions that will meet objectives
 Order questions appropriately (funnel from broad to specific)
1. Start Broad – What is important?
2. Get Specific – What does that mean?
3. Prioritize – How important is this?
 Use a mix of open and close ended questions
 Test the questions with a small sample of customers, then
review to ensure objectives are being met
Developing VOC Questions
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Pitfalls with developing questions:
Being too broad with questions can lead to non-measurable responses.
However, being too specific can bias or lead customer responses or lead to narrow issue identification.

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Sample Open Ended Questions:
 What are the product/service features that are most important to
you? (primary and secondary)
 What are your expectations relative to delivery dates?
 How do we compare to our competitors?
 What are some additional features that would enhance the
product or service?
Examples of Effective Questions to Gather VOC
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Open-Ended Questions:
Initial questioning to ensure interviewee isn’t being led to specific responses.
Allows the interviewer to probe for more specific answers.
Good for gathering exact responses to be used for presentations

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Sample Close Ended Questions:
 Would you continue to buy other products/services from us?
 Did we meet all of your service expectations?
 How important are the product/service features you mentioned:
1. Not important at all
2. Below average importance
3. Average importance
4. Above average importance
5. Extremely important
6. Not Applicable
Yes No
1 2 3 4 5 6
Not Satisfied Moderately
Satisfied
Very Satisfied Not Applicable
Examples of Effective Questions to Gather VOC
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Close-Ended Questions:
Allows the interviewer to rank specific responses to questions.
Good for gathering rankings to be used for presentations.

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Objective
 Practice identifying bias in questions.
Instructions
 Review the questions below and determine how each one is biased.
 Prepare your findings.
1. What service qualities, such as quick loan approval or excellent customer
service, are most important to you (external)?
2. When did you mail in your application (external)?
3. What department caused the most problems in your ability to process the
application (internal)?
4. What % of the time do you normally see the following types of errors (internal)?
Determining Question BiasEXERCISE
23
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Please Do Not Proceed Forward
Determining Question BiasEXERCISE
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When you see this symbol, please do not continue forward in the materials.

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1. What service qualities, such as quick loan approval or excellent customer
service, are most important to you (external)?
Question contains a narrow list of qualities. Neither may be the most
important to the customer.
2. When did you mail in your application (external)?
Too much subjectivity. Difficult to remember actual time for customer.
3. What department caused the most problems in your ability to process the
application (internal)?
Leading. There may have not been any problems. Also, focusing blame on
a particular group.
4. What % of the time do you normally see the following types of errors (internal)?
Over-generalization. Doesn’t get to the requirement or expectation. Not
based on actual data – assumptions.
Determining Question Bias – AnswersEXERCISE
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Identify
Customers
Develop
VOC
Research
Plan
Gather
Customer
Issues /
Needs
Translate
Issues /
Needs to
CTQ’s
 Review Charter
and SIPOC
 Define
customers
 Segment
customers
 Identify research
methods
 Develop
research plan
 Develop VOC
questions
 Collect VOC
 Organize
customer issues
into needs
 Translate needs
into
requirements
(CTQ’s)
 Set specification
limits
Voice of Customer (VOC) Process
26
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 Qualitative data is different, it requires translation
 Customer data can be overwhelming
 Different voices heard at the same time
 Customers often have difficulty in expressing requirements
 Different “voices” from the same customer
 Bias by the collector
Challenges and Key Issues with Gathering VOC
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Key Steps in Translating Qualitative Customer Feedback into Needs
1. Collect VOC
2. Probe for clear understanding
3. Identify key issue
4. Organize issues into central categories/themes
5. Translate into customer need in terms that make sense to the
organization
Organize Customer Feedback
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Organization Tool: Affinity Diagram
Customer
ResponseCustomer
ResponseCustomer
Response
Customer
Response
Customer
ResponseCustomer
Response
Customer
Response
Customer
Response
Customer
ResponseCustomer
ResponseCustomer
ResponseCustomer
ResponseCustomer
Response
Customer
ResponseCustomer
ResponseCustomer
Response
Customer
Response
Customer
Response
Customer
Response
Customer
ResponseCustomer
Response
Customer
Response
Customer
Response
Issues –
Hold Time Inaccurate Statement
Phone
Transfers
Process
DifficultIssue Category –
Organizing Customer Feedback
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Once VOC has been gathered, it is necessary to organize the feedback from the customers. Categorizing the issues will help bring out central themes for the team to focus on.
Instructions for Affinity Matrix:
Using raw VOC issues/feedback, write down the feedback on sticky notes.
Post the stick notes to a white board or flip chart paper.
Once completed, sort issues into 4-8 related groups.
Create a summary issue category for each issue group. Make sure everyone agrees to headings.

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Examples of Translating Qualitative Information into Needs
Customer Issue Customer Need
“On hold too long”
“My statement is
inaccurate”
“I keep getting
transferred”
Reduce
Hold Time
Statement Accuracy
Resolve Problem 1st
Time
Organize Customer Feedback
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Guidelines for translating customer needs:
Combine feedback into central themes
Write the corresponding need, not the solution
Use terms that are measurable
Avoid words like “should” or “must”

Copyright © 2016 Acuity Institute LLC. All rights reserved.
What you learned during this section:
 How to develop a VOC research plan
 Methods to collect data around customer requirements
 How to develop effective VOC questions
 How to organize and analyze customer feedback
Summary of Section
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Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove
How to Translate VOC into CTQ’s
What is Voice of Customer (VOC)
Who is the Customer
Define – Voice of Customer
Lean Six Sigma Training
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 Know how to translate customer needs into a measurable,
actionable customer requirement
 Learn tools for analyzing and prioritizing customer
requirements
 Understand how to identify customer specification limits
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
33
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Copyright © 2016 Acuity Institute LLC. All rights reserved.
Identify
Customers
 Review Charter
and SIPOC
 Define
customers
 Segment
customers
Develop
VOC
Research
Plan
 Identify research
methods
 Develop
research plan
 Develop VOC
questions
Gather
Customer
Issues /
Needs
 Collect VOC
 Organize
customer issues
into needs
Translate
Issues /
Needs to
CTQ’s
 Translate needs
into
requirements
(CTQ’s)
 Set specification
limits
Voice of Customer (VOC) Process
34
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Common Customer Requirements
Reliability
Durability
Features
Prestige
Usability
Failure Recovery
Product
Quality
Convenience
Accuracy
Speed/Timeliness
Treatment/Interaction
Tangibles
Failure Recovery
Service
Quality
Low Original Price
Value Ratio
Discounts/Sales
Total Costs
Frequent Buyer Plans
Terms, Tax
Price/
Value
What Matters to Customers?
35
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During the VOC process, customers may express their issues in the form of solutions or complaints, or the issue may be too general or abstract to glean any meaningful information from.
By conducting translation of VOC feedback, the “real” or hidden requirements being vocalized by the customers will be identified.

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 Understanding customer requirements is essential to
assure the outputs of your processes meet the customer’s needs
 To identify whether your organization’s processes are meeting
customer needs and expectations, these customer needs must be
translated into customer requirements that are measurable and
quantifiable
 The term for a measurable and quantifiable customer requirement is
CTQ (Critical to Quality), because these are the characteristics of a
product or service that are “Critical to Quality” for the customer
What is a CTQ?
Defining Critical to Quality (CTQ’s)
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–
Dissatisfaction
Primary SatisfierDelighters
Must Be
Satisfaction
+
Service
Dysfunctional
Service
Fully
Functional
Prioritizing Customer Needs – Kano Analysis
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Kano Model developed by Professor Noriaki Kano.
Identified needs are not of equal importance to customers. The Kano analysis frames needs into must be’s, primary satisfiers, and delighters.
Kano’s theory is that for some customer needs, customer satisfaction is directly proportional to the extent to which the product or service is fully functional. The horizontal axis represents how fully functional a product or service is, whereas the vertical axis represents how satisfied a customer is.
Think about the following travel needs. Where would they fit on the Kano Analysis?
– In flight movie
– Hot meal
– On time flight arrival
– Safe landing

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Requirements Type Definition
Must Be – Priority #1 Requirement that can dissatisfy, but
cannot increase satisfaction
Primary Satisfiers – Priority #2 The more of these requirements that
are met, the more the customer is
satisfied
Delighters If the requirement is absent it does
not cause dissatisfaction, but it will
delight customers if present
Indifferent Customer is indifferent to whether
the feature is present or not
Reverse Feature actually causes
dissatisfaction
Kano Analysis Definitions
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Requirement Type Ease/Expense to Capture Approach to Use
Must Be  Difficult, more expensive
 Information is known but difficult
to access and organize
 Customer complaints
 One-on-One interviews
 Focus groups
Delighters  Very difficult and expensive
 Information is unknown and
must be created or combined
from many unrelated sources
 Carefully orchestrated focus
groups
 Customer observation
Primary Satisfiers  Easy and inexpensive
information
 Information is known and can be
easily captured
Mail and phone surveys
Market research
 Be a customer
Level of Effort to Capture Each Requirement Type
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Need Rating
~~~~~~~~ 4.2
~~~ 3.6
~~~~~ 1.2
~~~~~~~~~~ 2.4
~~~~~ 2.8
Q. How important are the
product/service features:
1. Not important at all
2. Below average importance
3. Average importance
4. Above average importance
5. Extremely important
Survey/Interview Feedback
 Complaints from
Customers
 Feedback from Internal
Associate
Qualitative Feedback
Determine priority
needs through
analysis of all
VOC methods
Must-Be
Requirements
Determining Priority Needs
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Prioritizing needs is based on combining qualitative feedback methods that are used to collect complaints and issues and the quantitative methods used by the team to drill down and understand the specific needs of the customers. In this example the team used two different criteria to evaluate each need . #1: The total number of customer responses per need. #2: The overall importance of the need to the customer. Each of the criteria had a maximum value of 2.5. When combined the highest rating is 5 for each need.
Prioritization Process:
Combine the importance rating responses for each need and calculate the average.
You can also add the satisfaction rating averages to the subsequent importance rating.
Avoid having the team prioritize the needs. Use your qualitative and quantitative analysis.

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CTQ’s are the translated customer needs into quantifiable and
measurable requirements of our products and services
Reduce
Hold Time
Process
Output
Characteristic
Measure
Target
Answer Call
<15 Seconds Prioritized Need = Speed of Answer = Customer call to answer time = <15 seconds CTQ Translating Must-Be Needs into CTQ’s 41 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Once CTQ’s have been identified, review and update the charter to align with your new findings. Once updated, remember to review with your project Sponsor/Champion. Questions to consider are: Is your problem and goal statements aligned with your CTQ’s? Have you scoped your project to focus on the critical requirements of the customer? Copyright © 2016 Acuity Institute LLC. All rights reserved.  Once CTQ’s have been identified and documented, it may be necessary to develop specification limits.  Specification limits (specs) are specific tolerances that the CTQ must fall within for the customer to be satisfied with performance. Example of CTQ’s and specification limits: Pay Federal filing fee by 12th of month CTQ 6th of each month Lower Spec Limit 12th of each month Upper Spec Limit Developing Specification Limits for CTQ’s CTQ Chart 42 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Spec limits are separated into the lower spec limit and the upper spec limit. The upper spec limit is usually the CTQ defined in the VOC (i.e. 100% Accuracy, Answer Phone <15 seconds). However, sometimes a lower spec limit is also defined. This is particularly common in CTQ’s around delivery. (Example would be that the CTQ for delivery of a product is between 8AM-12PM. Anything below the lower spec limit or above the upper spec limit could lead to customer dissatisfaction) Specification limits are also necessary in the Control Phase so tolerances to track process performance are documented and proactive action can be taken if process performance begins to near either the upper spec limit or the lower spec limit. Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  How to translate customer needs into a measurable, actionable customer requirement  Tools for analyzing and prioritizing customer requirements  How to identify customer specification limits Summary of Section 43 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze ControlImproveDefine MeasureMeasure AnalyzeAnalyze ControlControlImproveImprove End of Lesson: Define – Voice of Customer Lean Six Sigma Training 44 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Measure Phase Lean Six Sigma Training 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Measure Phase Overview Lean Six Sigma Training 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Measure identifies the measures that will be used to baseline process performance and determine how well processes are meeting customer requirements, describes and displays variation in the process, and calculates process performance through statistical measures of sigma and yield. Measure Phase Introduction 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Identify and Define Key Indicators of Process Performance  Develop Data Collection Plan  Calculate Baseline Performance (Sigma)  Display Performance Data  Promote Productive Team and Change Management Atmosphere Population of Calls Population of Calls Sample Pareto Diagram The types of complaints received from customers (January 1 – December 31) DiscreteOutputTypes of Complaints Run ChartThe number of inbound calls to the call resolution group (January 1 – December 31) ContinuousInputNumber of Customer Calls Measure DisplayOperational Definition Type of Data Type of Measure Population of Calls Population of Calls Sample Pareto Diagram The types of complaints received from customers (January 1 – December 31) DiscreteOutputTypes of Complaints Run ChartThe number of inbound calls to the call resolution group (January 1 – December 31) ContinuousInputNumber of Customer Calls Measure DisplayOperational Definition Type of Data Type of Measure Defects: 102 Opportunities: 4 Units: 221 DPMO: 115,385 Sigma: 2.7 Defects: 102 Opportunities: 4 Units: 221 DPMO: 115,385 Sigma: 2.7 0 10 20 30 40 50 0 100 200 300 400 Days Fr eq ue nc y CTQ = 15 Days N = 4267 Average = 22.18 Days Measure Phase Overview 4 ANALYZE CONTROL IMPROVE MEASURE DEFINE This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Measure Phase Deliverables Define Measure Analyze Improve Control Project Charter Project Management Project Plan Process Definition SIPOC As-Is Process Map Quick Win Identification Stakeholder Management Stakeholder Map Stakeholder Management Plan Communication Plan Voice of Customer Customer Identification VOC Research Plan Kano Analysis CTQ Identification  Root Cause Analysis Affinity Diagram Fishbone Diagram and/or 5 Why’s Lean Process Analysis Lean Tools and Measures Graphical Data Analysis Histogram Pareto Chart Box Plots Correlation Analysis Statistical Data Analysis Linear Regression Multiple Regression Root Causes Identified Quick Win Identification Identify Measures X/Y Matrix Data Collection Operational Definitions Measurement Systems Analysis (MSA) Data Collection Plan Describe and Display Data Histogram Pareto Chart Pie Chart Run Chart Control Charts Baseline Performance Sigma Performance Yield Process Capability Quick Win Identification Identify and Select Solutions Generate Solutions Benchmarking Solutions Prioritization Matrix Solution Selection Matrix To-Be Process Map Financial Impact of Solutions Cost/Benefit Analysis Risk Planning and Testing Failure Modes and Effects Analysis (FMEA) Pilot Plan Implement Solutions Multi-Generational Product Plan (MGPP) Implementation Plan Stakeholder Management Project Storyboard Process Control Control Charts Process Monitoring Plan Dashboard Response Plan Project Documentation Process Procedures Replication Opportunities Solution Transfer Plan 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. End of Lesson: Measure Phase Overview Lean Six Sigma Training 6 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine MeasureMeasure ControlControlAnalyzeAnalyze ImproveImprove Measure Relationships (X/Y) Types of Measures Measure – Identify Measures Lean Six Sigma Training 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand and identify measures of the process  Identify the types of process indicators  Identify relationships between measures and CTQ’s By the end of this section, you will be able to: Overview – Objectives – Key Topics 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Selecting key output measures (Ys)  Collecting baseline data for key output (Ys), input and process measures (Xs)  Studying the variation in the output measures (Ys)  Calculating the capability of the process  Preparing for the Analyze Phase Focus of the Measure Phase 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. I P O I P O The Work Process The Improvement Process Relationship of Work Process and Improvement Process 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Dictionary says - “the dimensions, capacity, or amount of something ascertained by measuring” A measure takes a concept such as time, error rate, length, width, height, amount, percent, or duration, and describes it in terms of a number (data)  Overall  At a specific point in the process  At a specific point in time  Over a period of time What is a Measure? 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Process Effectiveness The extent to which customer requirements are met  Defect Rate  Accuracy  Actual/Plan  Cost per transaction  Time per activity (Cycle Time)  Set up time for new customer needs  Cycle Time for special customer requests  Percentage of special requests not met Process Efficiency The internal allocation of resources Adaptability The ability to quickly adapt to changing requirements  Service Level(s)  Timeliness  Response Time  Output per unit (Space, FTE, Time)  Process Yield 3 Process Measurement Categories 6 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: There are two primary categories of measurements to determine process performance. They are Process Effectiveness and Process Efficiency. Adaptability is a process objective involving effectiveness and efficiency over time. Process adaptability is an objective that a project team should aim for after effectiveness and efficiency goals have been achieved. A process that is adaptable to changing customer needs, and the ability to remain capable in spite of variation that may exist within ones customer group’s needs is said to be “robust”. Copyright © 2016 Acuity Institute LLC. All rights reserved. Data Continuous Discrete  Countable  Indivisible No values possible between whole units Never fewer than 1  Counts in categories  Measurable  Divisible Unit on scale is endlessly sub-divisible Precision is limited only by the accuracy of the measuring instrument  Measures variation of a characteristic Examples  True/False Yes/No Satisfaction (poor, good, excellent) Examples Dimensions  Time Currency Two Types of Data 7 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: A simple method to determine if your data is continuous is to ask the following question: Is the unit of data divisible? If yes, does the unit still retain a meaningful value. If yes, your data is continuous. Example, if you have 50 hours, the unit is hours, if you divide an hour in half you have 30 minutes, hence the unit is continuous because 30 minutes is of value. For discrete data, if you divide it in half it does not retain a meaningful value. Example, if you have 10 false answers on a survey, the unit is answers, if you divide an answer in half you have a half of an answer, which is not a meaningful value. Individuals often misunderstand their data when they focus on the quantity of units in determining if they have continuous or discrete data. In the previous example the quantity is “10” false answers. In determining if the data is continuous or discrete you need to focus on the unit, which is answers, and not the quantity of answers “10”. Copyright © 2016 Acuity Institute LLC. All rights reserved. Data type is often determined at the outset of identifying your process CTQ (Y). If your Y is discrete, you will severely limit the tools available to you to Analyze and dissect your process. Generally speaking, continuous Ys and Xs are preferred, as the information provided by a given sample is typically greater with continuous data than with discrete data. However, as long as your Y is continuous, statistical analysis tools will largely remain available, even though your Xs might be discrete. CONTINUOUS DATA ALLOWS PROCESSES TO BE BROUGHT INTO SHARP FOCUS DISCRETE Implications Based on the Type of Data 8 CONTINUOUS This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Objective  Practice identifying discrete and continuous data types. Instructions  Identify if the following data descriptions are discrete or continuous. 1. The time it takes to schedule a meeting. 2. The difference between when a meeting is supposed to start and when it actually starts. 3. The numbers on a telephone. 4. The questions on a survey. 5. The assortment of candy delivered during afternoon snack time of a meeting. 6. The price of a ticket.  Prepare your findings. Types of DataEXERCISE 9 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Please Do Not Proceed Forward Types of DataEXERCISE 10 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes When you see this symbol, please do not continue forward in the materials. Copyright © 2016 Acuity Institute LLC. All rights reserved. 1. The time it takes to schedule a meeting. (Continuous) 2. The difference between when a meeting is supposed to start and when it actually starts. (Continuous) 3. The numbers on a telephone. (Discrete) 4. The questions on a survey. (Discrete) 5. The assortment of candy delivered during afternoon snack time of a meeting. (Discrete) 6. The price of a ticket. (Continuous) Types of Data – AnswersEXERCISE 11 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. To understand how your processes are performing and to determine whether they are meeting internal or external customer requirements requires measuring the process. In developing measures for your process, you must identify your indicators… What is an Indicator?  A measure  A measurement that indicates how well the process is performing  Should describe both the condition of a part of a process and the quality of the output or result of the entire process. Identify Process Indicators 12 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Elements Common to All Processes S I P O C Suppliers Inputs Process Outputs Customers Process Map Process Indicators Quality Indicators Process and Measures 13 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Quality Indicators  Used to determine the quality of the output provided to customers  Assess the degree of conformance or non-conformance to CTQ (customer requirement)  Are a lagging indicator, therefore, are not very useful in identifying reasons for non-conformance Process Indicators  Measures taken at critical points in the process to describe what the process is doing  Can serve as early warning signs (leading indicator) that something is wrong before the defect in the output occurs  Monitored to evaluate process stability  Monitored and taken corrective action on to avoid adverse impact on customers Types of Indicators 14 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Output Measures Measures that are placed on your internal processes. These are the measures for internal customers (i.e. departments) or those that influence output measures. Measures used to determine how well customer needs and requirements are met. Measures that are placed on your suppliers to ensure quality inputs are received. Input Measures Process Measures Process Indicators Quality Indicators Linking Indicators to the Three Types of Measures 15 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Measures used to determine how well customer needs and requirements are met. Measures that are placed on your internal processes. These are the measures for internal customers (i.e. departments) or those that influence output measures. Measures that are placed on your suppliers to ensure quality inputs are received. Examples:  # of calls/hour taken by each service rep  2nd year customer retention figures  Total # of meals delivered  % customer complaints Examples:  Availability of service personnel  Time required to perform credit review  % of non-standard approvals required  # of qualified applicants  Total cost of service delivery  Total overtime hours Examples:  # of customer inquiries  Type of customer inquiries  # of orders  # of positions open  Type of position open  Accuracy of the credit analysis  Timeliness of the contract submitted for review Output MeasuresProcess MeasuresInput Measures Linking Indicators to the Three Types of Measures 16 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. The Improvement Process I P O C 1. Measures Output Measures to CTQ’s 17 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  An output measure expresses the “voice of the process” because changes in input or process conditions drive changes in the output measure  A good output measure serves as the translation of the voice of the customer  Changes in the values of a good output measure should predict changes in the degree to which the process meets the customer need  As changes are made upstream (to the process or to the inputs to the process), the output measure is a good indication of the success of changes being made upstream in the process Why Start Measurement with Output Measures? 18 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 1. Make the output measure and the requirement as closely related as possible  For each customer requirement there should be a corresponding output measure Example: Customer Requirement Customer Specification Output Measure Timely delivery of merchandise 0 late deliveries of merchandise # or % of late deliveries Accurate statements 0 statements with errors # or % of inaccurate statements Guidelines for Developing Output Measures 19 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 2. Measure at intervals that allow you to make useful judgments  Measure often enough to catch problems before too much damage has been done, but balance this with time and cost to collect data. 3. Avoid using averages as quality output measures  Averages can be misleading. Example: When a vendor who is supposed to be paid 30 days after invoice date receives a late payment (after 30 days), the contractor does not care about the company’s claim that they pay all invoices on an average of 25 days after the invoice date. Guidelines for Developing Output Measures 20 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. The Improvement Process I P O C 2. Measures Process Measures to Output Measures 21 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 1. Review the Process Map and Identify “Points of Pain”  Measure steps that experience has shown are problem area or “points of pain”. Example: Areas of rework, long delay, or errors  Measure steps that have long cycle times  Measure where there is logical change or a decision point when the process moves from one process customer to the next P1 Inputs to the process P2 “Rework loops – rework points P3 At the end of major process steps P4 Hand-offs between departments 5 m in 10 m in Customer Payment Processor AP Processor Y N P1 P2 P4 P5 P3 P1 ? Guidelines for Developing Process Measures (Critical X’s) 22 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 2. Measure critical “Moments of Truth” (customer touch point)  Evaluate situations where a customer can leave a point of contact with the company and can have either a positive or negative experience. 3. Ensure process measures are linked/correlated to output measures  These are the steps in the process that are leading indicators of downstream performance of the final process output. These are the most important! 4. Include measuring critical inputs as part of your process measures  The timing and accuracy of inputs can have a great effect on the process, including these measurements can be telling about the process. Guidelines for Developing Process Measures 23 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. The Improvement Process I P O C 3. Measures Input Measures to Process Measures 24 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 1. Review the process map and identify incoming “Points of Pain”  Measure inputs that experience has shown are problem area or “points of pain”. Example: # of documents, types of documents, or location of supplier  Measure where the inputs enter for the first time or throughout the process 2. Ensure input measures are linked/correlated to process measures  These are the inputs to the process that are leading indicators of downstream performance of the final process output. Guidelines for Developing Input Measures (Critical X’s) 25 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Key: Little Relationship Moderate Relationship Strong Relationship X/Y Matrix - Input/Process/Output Measures Process: Bills Sent To Customer’s Home Output Measures On Time Bill Delivery # of Errors Per Bill % Received Response Time # Of Processing # per Bill % Statements Accurate Input and Process Variables Input/Process Measures Linking Output Measures to Process and Input Measures H M L H M: M L L L: H: X/Y Matrix 26 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Selecting Input and Process Measures 1. List output measures. 2. List potential process and input measures. 3. Assess relationship between output measures and potential process and input � measures. 4. Select set measures for process monitoring. Copyright © 2016 Acuity Institute LLC. All rights reserved. Process Check: Measures and DMAIC  Understand Core and Sub Processes  SIPOC  Develop Measures Around SIPOC  Effectiveness  Efficiency  Customer Satisfaction  Measurement Criteria  Importance  Understandability  Sensitivity  Actionable  Accessibility  Customer Requirements  Cost Benefit of Data Collection  Collect Data  Establish Relationships to Key Measures  Scatter Plots  Regression  Process/Output Measures Matrix  Tree Diagram Finalize Process Measures Dashboard Determine Process Measures with Best Relationships Narrow List of Measures Data Collection to Select Measures  Judgment And Linkage Measure ControlAnalyze Identify and Define Universe of Potential Measures Narrow the Measures Down to the Critical Few 27 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Principles of Good Measures  The measure must be important  The measure must be easy to understand  The measure is sensitive to the right things and insensitive to other things  The measure promotes appropriate analysis and action  The measure should be easy to get 28 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  What measures are  The types of process indicators  Method to document the relationships between measures and CTQ’s Summary of Section 29 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine MeasureMeasure ControlControlAnalyzeAnalyze ImproveImprove Measure Relationships (X/Y) Types of Measures Measure – Identify Measures Lean Six Sigma Training 30 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. By the end of this section, you will be able to:  Understand the statistical relationship of process and input measures to outputs  Understand the focus of monitoring measures Overview – Objectives – Key Topics 31 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Y relates to the outputs  X relates to the process and inputs  Identifying Xs that might explain variation in the output measure  Collecting data efficiently: both the Ys and the suspected Xs Now we are talking!!!! Prepare for the Analyze Phase 32 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Process Variables (Xs) Input Variables (Xs) Outputs (Ys) Process X X X X X X X Y Y Y Process Flow Predictor and Response Variables 33 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Outputs (Ys) Product or service produced or delivered by the process. Key measures include cycle time, CTQs and defects, customer satisfaction, cost, etc. Process Variables (Xs) Those variables that influence the output and are generally controllable by those who operate the process. Key measure might include timeliness of step-by-step processing of the unit, accuracy/reliability, availability of products and staff, service provider behaviors, etc. Input Variables (Xs) Materials and information used by the process to create the outputs. Inputs are often outside the control of the process operator. Copyright © 2016 Acuity Institute LLC. All rights reserved. Input Measures Process Measures Output Performance Measures Efficiency Measures Cost per transaction  Time per activity Amount of rework  Turnaround time Variability of an activity  # of inbound items Effectiveness Measures Percent defective Number of errors  Total response time  Invoice/billing accuracy Revenue X’s X’s Y’s Monitoring and Controlling the Critical X’s 34 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. To get results, should we focus our behavior on the Y or the X?  X1...Xn  Independent  Input or Process  Cause  Problem  Control Response Predictor x x x xx x x x  Y  Dependent  Output  Effect  Symptom  Monitor Focus on the Process 35 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Understanding variation requires understanding the relationship between the process response (Y) and the process predictors (Xs).�� Y = f (X1, X2 , . . . , Xn )� The process predictors (Xs) affect (drive) the process outputs (Y). Copyright © 2016 Acuity Institute LLC. All rights reserved. For every process there is a dependent variable called Y that we are attempting to influence. The independent variables which determine what happens to our Y are called the process X’s. Thus, we can boil down every process into a simple formula: Y = f(X1,X2,X3…Xn) Once we understand the relationship between our various Xs and our Y, we can monitor and manipulate the Xs if necessary to modify Y as desired, then lock down the process so that Y remains within the proper range and is meeting customer requirements. Monitoring and Controlling the Critical X’s 36 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  The statistical relationship of process and input measures to outputs  The focus of monitoring measures Summary of Section 37 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine MeasureMeasure ControlControlAnalyzeAnalyze ImproveImprove End of Lesson: Measure – Identify Measures Lean Six Sigma Training 38 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine MeasureMeasure ControlControlAnalyzeAnalyze ImproveImprove Data Consistency and Stability Collecting Data Data Sampling Operational Definitions Measure – Data Collection Lean Six Sigma Training 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand the importance of operational definitions  Understand the criteria for documenting operational definitions  Develop sound definitions for measures By the end of this section, you will be able to: Overview – Objectives – Key Topics 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Data will help the team to:  Shift from “gut feel” understanding to “Measurable” and “Quantifiable” understanding  Support or disprove preconceived ideas and theories  Determine a baseline of current process performance  Document the history of the problem over time  Develop metrics to measure the impact of changes on a process  Identify and understand relationships that might help explain process variation Data Collection 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Data and measurement play vital roles in every business improvement initiative. The right metrics give the organization a fact based view of current process performance. Think for a moment. 1. How well does your organization make decisions based on data? 2. How effective is your organization at meeting or exceeding customers expectations? Data will help answer these questions. Copyright © 2016 Acuity Institute LLC. All rights reserved. In developing your data collection plan you will need to define:  What you are trying to evaluate and measure  Whether you need to collect new data or if existing data can be used  How you will attach a value to what you are measuring  How will you collect the data  How frequently you will collect data  The appropriate sample size (if needed)  What data will the team collect Guidelines for Developing Data Collection Plan 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Step 1 Develop Operational Definitions, Procedures, & Sample Size Step 2 Plan for Data Consistency and Stability Step 3 Collect Data Step 4 Continue Improving Measurement Consistency The Data Collection Process 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Purpose:  To remove ambiguity  Everyone who is collecting the data has the same understanding  Identifies what to measure  Identifies how to measure  Reduces collector to collector variation to ensure that no matter who does the measuring, the results are the same Definition: An operational definition is a precise description that tells how to get a value for the characteristic you are trying to measure. It includes what it is and how to measure it. Operational Definitions and Procedures 6 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Definitions Must Have Specific Criteria Everyone understands the definition and can use the definition to collect data in the same way. Example: If a team were measuring the time it takes to drive to work, the team would need to agree on “what” to measure (how long the drive is, how much time it takes) and agree on the method that will be used to measure it.  Definitions Must Have a Method for Measuring the Criteria The definition describes how to get the value (either variable or continuous). Example: The team would need to know how to calculate the length of the drive – is it in miles or kilometers?  Definitions Must be Useful to the Customer and Team The definition relates directly to the issue the customer is having with the process. Example: Are customers really interested in the distance of the drive or how long the drive is? Operational Definitions Guidelines 7 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. How would you define these?  Office meeting “first thing in the morning”  On time flight departures  Computer downtime  Accurate bill Measure Type of Measure Type of Data Operational Definition What Operational Definition How Billing Accuracy Output Discrete Inaccurate = Bill with any of the 5 fields not matching customer order form Reconcile invoice with customer order for 5 fields Example: Examples of Why Operational Definitions are Necessary 8 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  The importance of operational definitions  The criteria for documenting operational definitions  How to develop sound definitions for measures Summary of Section 9 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine MeasureMeasure ControlControlAnalyzeAnalyze ImproveImprove Data Consistency and Stability Collecting Data Data Sampling Operational Definitions Measure – Data Collection Lean Six Sigma Training 10 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. By the end of this section, you will be able to:  Understand the importance of data sampling  Understand the uses of sampling in process and population types Overview – Objectives – Key Topics 11 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Statistical Inference is the process of drawing conclusions about a population based on analysis of a portion of that population. Sampling is the process of selecting the portion of the population to study. SAMPLEPOPULATION As it is the population we wish to study, not merely a subset of it, there is an inherent danger in sampling. If we are to have confidence in our results, the sample must be representative of the overall population. The illustration above shows a population (area under the black line or top line) and a representative sample (area under the red line). Fr eq ue nc y Pop. Sample m (N = 5,000 People) (n = 100 People) What is Sampling? 12 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Why Sampling is Necessary Why Sample?  Data collection can be costly and timely  Sometimes data collection is a destructive process (ex. taste testing)  Sound conclusions can often be drawn from a relatively small amount of data Sample Frequency  Collect often enough to catch fluctuation  Better to collect several small samples over different times than one large sample at a single point in time  Greater the instability (variability), greater the sampling frequency 13 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Process Sampling: predicting WHY a measure takes on certain values We have a process that we want to measure, analyze or control  Establishing baseline performance of the process  Conducting a special study to improve the process  Ongoing monitoring to control the process  Population Sampling: estimating or characterizing the WHAT or HOW MANY of a measure We have a large population that we want to describe  Income level of a certain customer segment  % of customers who would purchase a new service  Reasons for being behind in credit card payments 2 Important Uses of Sampling 14 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 25-30Control Chart 25Scatter Diagram 50Pareto Chart 50Histogram 100 and nP≥5Proportion Defective (P) 25-30Standard Deviation 5-10Average Minimum Sample SizeTool or Statistic Simple Sample Size Guidelines for Process Sampling 15 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Monitor process frequency enough to catch it going from good to bad  Better to collect several small samples over different times than one large sample at a single point in time  Unstable process – more frequently  Stable process – less frequently Covered in the “Describe and Display Data” lesson Simple Frequency Guidelines for Process Sampling 16 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Where to Sample Locating your “Sampling Sweet Spot”  Location in the process where the process variable affects the output variable 17 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  The importance of data sampling  The uses of sampling in process and population types Summary of Section 18 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine MeasureMeasure ControlControlAnalyzeAnalyze ImproveImprove Data Consistency and Stability Collecting Data Data Sampling Operational Definitions Measure – Data Collection Lean Six Sigma Training 19 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. By the end of this section, you will be able to:  Understand the importance of measurement system analysis  Understand the different measurement system analysis techniques (accuracy, repeatability, reproducibility, stability)  Take the actions necessary to ensure the measurement system functions properly Overview – Objectives – Key Topics 20 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Plan for Data Consistency and Stability Measurement systems must be validated to ensure that data is consistently free from errors  Data is only as good as the process that measures it  Methodology must be developed to teach the measurement system to ensure consistency and stability, also known as Gage R&R (Gage R&R analysis quantifies the precision of a measurement system to determine its acceptability)  Determine factors that could cause the measurement of an item to vary  Find ways to reduce the effects of those factors 21 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Key Questions for Measurement System Analysis  How much variation is caused by the measurement system vs. actual process variation?  How much error is considered allowable for this data?  What are the sources of the measurement error?  How can the error sources be eliminated or minimized? 22 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Guidelines for Measurement System Analysis A Measurement System must be:  Accurate  Repeatable  Reproducible  Stable 23 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Issues when Validating a Measurement System Why do a Gage R&R?  To determine if different workers across a given process use the same criteria to determine “good” from “bad”  To assess work standards against customer requirements  To identify how well people are conforming to themselves  To identify how well people are conforming to a “known master”  To identify training, procedural, or standards gaps 24 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. The difference between observed average measurement and a master/standard. Accuracy Standard Value Observed Average Accuracy in Measurement Systems Measurement System Accuracy 25 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: This is the most common approach for correcting inaccuracy (or bias) in a measurement process. This is driven by the people or equipment “drifting” over time. Copyright © 2016 Acuity Institute LLC. All rights reserved. Variation experienced when one person repeatedly measures the same unit with the same measuring equipment. (Minimum Variation) Repeatability Repeatability in Measurement Systems Measurement System Repeatability 26 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Variation when two or more people measure the same unit with the same measuring equipment. Reproducibility Data Collector 2 Data Collector 1 Reproducibility in Measurement Systems Measurement System Reproducibility 27 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Variation obtained when the same person measures the same unit with the same equipment over an extended period of time. Stability Time 1 Time 2 Stability in Measurement Systems Measurement System Stability 28 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Develop a master standard for everyone to utilize  Train data collectors together  Define each measure (operational definitions)  Test for accuracy, repeatability, reproducibility early and make changes to system accordingly  Audit the process frequently (stability) Improving the Measurement System 29 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  The importance of measurement system analysis  The different measurement system analysis techniques (accuracy, repeatability, reproducibility, stability)  How to take the actions necessary to ensure the measurement system functions properly Summary of Section 30 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine MeasureMeasure ControlControlAnalyzeAnalyze ImproveImprove Data Consistency and Stability Collecting Data Data Sampling Operational Definitions Measure – Data Collection Lean Six Sigma Training 31 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. By the end of this section, you will be able to:  Understand the elements of a data collection plan  Understand the purpose of data collection forms  Determine the benefits of using existing data collection methods or developing new methods  Develop elements of a data collection plan for your project Overview – Objectives – Key Topics 32 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Communicate the purpose (what and why) to the data collectors and process participants  Train everyone who will be collecting data  Make data collection procedures error proofed (consistency and stability)  Oversee data collection and perform a pilot test (check in frequently with collectors) Begin Data Collection 33 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Measure Specify the name of what you are measuring (billing accuracy, billing cycle time). Type of Data Discrete or Continuous. Type of Measure Specify whether it is an output, input or process measure. Operational Definition Define what is being measured, how it will be measured, and how it will be recorded Sample - Number to be sampled - Where in the process to sample - Frequency Display - What tool or tools will you use to display the data Data Collection Plan Elements Data Collection Plan 34 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Sample 100 Calls Sample 225 Statements Population of Calls Population of Calls Population of Calls Sample HistogramThe average hold time per hour / day / week / month (January 1 – December 31) ContinuousProcessHold Time Average Pareto Diagram The types of complaints received from customers (January 1 – December 31) DiscreteOutputTypes of Complaints Run ChartThe number of inbound calls to the call resolution group (January 1 – December 31) DiscreteInputNumber of Customer Calls Call Resolution Statement Accuracy Measure Pie ChartThe % of calls resolved without transfer to another department (March 1 – June 31) DiscreteProcess Pareto Diagram The inaccurate fields for each statement (March 1 – June 31) DiscreteOutput DisplayOperational DefinitionType of Data Type of Measure Data Collection Plan Example 35 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Data Collection Forms A Data Collection Form:  Defines exactly what is to be measured  Standardizes data collection between different people  Makes it easier to keep track of data Data Collection Form Considerations:  Descriptions of data that is being collected  Space to record the data  Space for comments  Space to keep track of stratification factors 36 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Loan # Location Inaccurate Fields Notes Incomplete Application Wrong Amount Address Incorrect No Signature A1234 Chicago X Missing address A2234 Chicago X B3432 London X A3487 Chicago X X B9872 London X B2903 London X Totals 1 3 2 1 Check Sheets  A type of data collection form that helps collect the data  Standardizes the data collection to ensure consistency if more than one person will be collecting Data Collection Form Example – Check Sheet 37 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Guidelines for determining the cost/benefit trade off for data collection  Can the new data be generated through systems modifications?  Can data collection efforts be easily integrated into existing work processes?  Is all the data being collected necessary to calculate key process measures?  Can some existing data collection efforts be curtailed because they do not add value? Cost/Benefits of Data Collection 38 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Check to make sure measurements are stable  Review the measurement procedures periodically to ensure consistency  Check to see if the data looks reasonable Continue Improving Measurement Consistency 39 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Keep in mind that data collection costs time and money. Ask yourself:  Is it worth it?  Know how you will use the data before launching a large collection. Ask yourself:  Can we test it through a quick pilot?  How we will gather and use the data?  Data is the output of a measurement process. Ask yourself:  How can I apply my process perspective to the issue of measurement quality? Data Collection Summary Points 40 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  The elements of a data collection plan  The purpose of data collection forms  The benefits of using existing data collection methods or developing new methods  How to develop elements of a data collection plan for your project Summary of Section 41 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine MeasureMeasure ControlControlAnalyzeAnalyze ImproveImprove End of Lesson: Measure – Data Collection Lean Six Sigma Training 42 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine MeasureMeasure ControlControlAnalyzeAnalyze ImproveImprove Types of Variation Understanding Variation Measure – Describe and Display Data Lean Six Sigma Training 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. By the end of this section, you will be able to:  Understand what variation is and how to display and describe it  Develop a Histogram and use it to interpret variation  Understand normal and non-normal data  Utilize additional tools for categorical data Overview – Objectives – Key Topics 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Reducing the process variability to meet customer requirements (CTQ’s) is a central theme for Lean Six Sigma improvement. We must first document this variability before we can understand the problems that drive it (Analyze Phase) and how to improve it (Improve Phase).  The goal of Lean Six Sigma improvement is to center a process well within customer requirements by reducing variation.  To determine whether this goal is achieved, Sigma requires that two elements are measured:  Customer requirements (CTQ’s) – Define Phase  Process baseline performance (mean & standard deviation) – Measure Phase Variation and Sigma 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Variation Happens  All repetitive activities of a process have a certain amount of fluctuation or variation  Variation is the “Voice of the Process”  When plotted, process variation becomes visible over time  Input, process, and output measures will have variation  Failure to understand variation could be costly Time Frequency What is Variation? 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. PROCESS VARIATION INHIBITS OUR ABILITY TO MEET CUSTOMER REQUIREMENTS Variation Product or Service Output Critical to Quality (CTQ) Defects: Service unacceptable to customer A Product or Service Output Critical to Quality (CTQ) Defects: Service unacceptable to customer A Why it’s Important to Understand Variation 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Histograms – a histogram is a bar graph that displays data in picture form. Often times called a frequency distribution because it shows clearly how frequently each separate value appears in the data.  A histogram reveals several factors about the data. Such as:  The central position of the data. For example, the mode or most frequently appearing value shows one measure of central position. (Another measure of central tendency is the average.)  The dispersion (spread or variation) of the data.  The shape (pattern) of the data. Charting Variation – Histograms 6 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. The first question to be answered in describing variation is “What is the central tendency of the data?” Central Tendency:  Refers to the “center” of the frequency distribution  Represents where most of the values (in this example cycle time) tend to occur Histograms – Central Tendency 7 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Descriptive Statistics:  Mean: 30.60 Days  Often referred to as the average, it is the most likely or expected value. The formula for mean is:  Median: 31 Days  The middle of the data set, where 50% of the data is greater than the median, and 50% of the data set is less than the median  Mode: 31 Days  The most frequently occurring value. Central Tendency can be estimated using the graphical display of the histogram, but is more precisely measured by statistical measures of central tendency. _ n ΣxiX = _ X is the value we are trying to solve (mean) Σ is a mathematical notation for adding values (summation) Xi is the I’th (where I runs from 1-n) data value of all the data n is the number of data points Statistics Overview: Histograms – Central Tendency 8 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Example: Calculate Mean, Median and Mode from the following data set: 1, 2, 6, 6, 10, 11, 12, 13, 14, 28 Mean = 10.3; Median = 10.5; Mode = 6 Copyright © 2016 Acuity Institute LLC. All rights reserved. Many companies often use mean or average to describe their process variation and performance. Example: A call center answers the phone on average within 30 seconds of the customer call. The customer’s requirement of the speed of answer is <1 minute.  How well is this process performing at meeting the customer’s requirement? What additional information is missing to draw sound conclusions? Mean = 30 Seconds CTQ = 1 Minute time Histograms – Central Tendency 9 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. The second question to be answered in describing variation is “What is the dispersion of the data?” Or, how much variation exists in the data? Dispersion:  Often referred to as the spread or variation in the measurements Histograms – Dispersion 10 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Descriptive Statistics:  Range: 23 Days  The maximum value in the data set minus the minimum value in the data set. The formula for range is: R = MAX - MIN  Standard Deviation: 4.67 Days  The most common measure of dispersion, the standard deviation is the average distance, or deviation, that a given point is away from the mean. The formula is: Dispersion can be estimated using the graphical display of the histogram, but is more precisely measured by statistical measures of dispersion S = n - 1 Σ (xi – x)2 _ _ X is the average of all of the data Σ is a mathematical notation for adding values (summation) n is the number of data points s is the value we are trying to solve (standard deviation) Xi is the I’th (where I runs from 1-n) data value of all the data Statistics Overview: Histograms – Dispersion 11 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. While the central tendency and dispersion of data provide valuable information, they still are not sufficient in describing variation. Example: 2 call centers have almost identical average and standard deviations.  Is one center performing better than the other? What additional information is missing to draw sound conclusions? Histograms – Central Tendency and Dispersion N = 100, Mean = 30.42, StDev = 4.452 12 N = 100, Mean = 31.1, StDev = 4.462 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. The final question to be answered in describing variation is “What is the shape of the data?” Histograms – Shape 13 Shape:  Refers to the pattern of the data when plotted on a histogram This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: These histogram examples above represent the 3 commonly encountered shapes. They are the normal distribution, bimodal distribution, and exponential distribution (which can be skewed either to the right-positive or left-negative). Many processes do not follow a “normal” distribution and non-normal data should not be considered bad data. Some examples of non-normal processes would include: Cycle time Calls per hour Customer waiting time And many others Copyright © 2016 Acuity Institute LLC. All rights reserved. The Normal Curve – a probability distribution where the most frequently occurring values are centered around the middle (or center point) and the other values tail off symmetrically in both directions.  In theory, the curve or distribution never ends  Equal proportions fall on either side of the most frequently occurring value  The center of the data is at the peak of the distribution  Almost 100% of the results are contained within 3 standard deviations on either side of the average Normal Curve 14 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: The normal distribution is of special interest because it naturally arises from measurement data. In addition, many statistical tools assume a normal distribution: Continuous Data Control Charts Continuous Data Hypothesis Tests Process Capability Design of Experiments We can use a “Normal Probability Plot” to test whether the data is normally distributed. Copyright © 2016 Acuity Institute LLC. All rights reserved. The Normal Curve – can be divided into segments, mathematically called standard deviations. Roughly 100% of the data falls within 3 standard deviations on either side of the average . Normal Curve and Standard Deviation 15 Number of Standard Deviations from the Mean x -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 Standard Deviations (Sigma’s) 1 2 3 4 5 6 % of Data Between Limits 68.26 95.46 99.73 99.9937 99.999943 99.9999998 68.26% This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Normal Probability Plot – Roughly Normal 16 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Normal Probability Plot – Bimodal Distribution 17 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Normal Probability Plot – Exponential Distribution 18 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. After you have plotted data using the Normal Probability Plot, check the P-value. Normality Test: P-value Normal data will fall on a straight line within the probability confidence intervals (95% CI) and have a P-value of >0.05. Normal: P-value >= 0.05, Not Normal: P-value < 0.05  Example: In the normal distribution probability plot (see previous pages):  Almost all of the data points fall within the limits  The P Value is 0.229 We would conclude that there is no serious departure from normality in this data.  Example: In the bimodal and exponential probability plots (see previous pages):  Many of the data points fall outside of the limits  The P Value is <0.05 We would conclude therefore that these data sets depart significantly from normal distribution. You can also perform the Anderson-Darling Normality Test to calculate the P-value (this test is found in many statistical software applications). There are several methods for handling non-normal data. These include stratifying differently, sub-group averaging, using different distributions, and transforming data. Transforming data is an advanced statistical technique that will not be covered in this course. 19 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. As we have covered in displaying variation, histograms allow us to answer the following questions:  What is the central position of the distribution?  What is the dispersion or spread of the distribution – is it wide or narrow?  What is the shape of the distribution – symmetrical, twin peaked, skewed to one side or the other, flat, etc?  Are there outliers or extreme data points? Interpreting Histograms 20 After describing the data, we can use the histogram to determine the appropriate strategy for improvement: 1. Reduce the process variation 2. Reduce the process mean 3. Reduce both the process variation and mean This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 1. Reduce the process variation  Process A (dashed line)  Excessive variation  Defects are created when process variation exceeds CTQ (also known as USL – upper spec limit)  Process B (solid line)  Reduced variation  Defects are eliminated or reduced when process variation stays within CTQ Product or Service Output Critical to Quality (CTQ) Defects: Service unacceptable to customer A B Product or Service Output Critical to Quality (CTQ) Defects: Service unacceptable to customer A B Interpreting Histograms 21 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 2. Reduce the process mean  Process A  Mean > CTQ creates defects
 Virtually all of the process
distribution is causing defects or is
“out-of-spec” for USL
 Process B
 Mean reduction* < CTQ eliminates defects  Defects are eliminated or reduced when process mean is shifted within CTQ requirements Product or Service Output Critical to Quality (CTQ) Defects: Service unacceptable to customer AB *Remember that just measuring the mean alone will not be sufficient to determine if process is meeting CTQ’s Interpreting Histograms 22 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 3. Reduce the process variation then reduce the mean  Process A  Variation and mean exceed CTQ requirements  Only shifting mean, the variation would still cause defects  Reducing variation first will make the process more stable  Process B  Mean > CTQ creates defects
 Reduce process mean
 Process C
 Defects are eliminated or reduced
when process variation is reduced
and mean is shifted within CTQ
requirements
Product or Service Output
Critical to Quality (CTQ)
A
C B
Interpreting Histograms
23
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Presenter
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Notes:

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Reduce the Process
Variation
Process may be
stable with no outliers
present
Symmetric, bell
shaped
Revise measurement
process
Measurement may
not be sensitive
enough
No distinctive values
Investigate reason for
asymmetric
Process data may not
be normally
distributed
Asymmetric, long tail
(either positive or
negative)
Investigate reason for
bi-modal, try
segmentation
There may be 2 or
more processes or
segments
Bi-modal, two humps
Standardize
measurement
process
Inconsistent roundingMultiple dominant
observations
Investigate cause of
bias
Measurement may be
biased
One value dominant
ActionConcludeObservationShape
Common Histogram Shapes
24
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Objective
 Practice interpreting histogram shapes.
Instructions
 Interpret the shapes on the following page.
 What can you gather from the shape?
 What actions might you take on it?
 Prepare your findings.
Histogram InterpretationEXERCISE
25
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Histogram InterpretationEXERCISE
26
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Please Do Not Proceed Forward
Histogram InterpretationEXERCISE
27
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Histogram Interpretation – ResultsEXERCISE
Symmetric
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Pie Chart – the pie chart is a tool that displays discrete variation by
breaking down the frequency of the data distribution into categories.
Pie Charts and Variation
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What you learned during this section:
 What variation is and how to display and describe it
 How to develop a Histogram and use it to interpret variation
 What normal and non-normal data is and how to differentiate
between the two
 Other variation tools that can be used for displaying categorical
data
Summary of Section
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Define Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine MeasureMeasure ControlControlAnalyzeAnalyze ImproveImprove
Types of Variation
Understanding Variation
Measure – Describe and Display Data
Lean Six Sigma Training
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By the end of this section, you will be able to:
 Understand what common cause and special cause variation are
 Develop a Run Chart and Control Chart and use them to
distinguish common and special cause
 Select the appropriate control chart based on the type of data
Overview – Objectives – Key Topics
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V
A
R
I
A
T
I
O
N
Machines
Materials
Methods
Measurement
Mother Nature
People
Describing and understanding the sources of variation is a first step in reducing it.
Sources of Variation
33
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Potential sources of variation:
Machines – The equipment used to transform inputs into outputs.
Materials – The outputs of the process. These may be tangible (i.e. documents) or not.
Methods – The procedures used to transform inputs into outputs. These may be as formal as standard operating procedures or not documented at all.
Measurement – Any tools that are used to monitor or track the performance of the process.
Mother Nature – Environmental elements within the process that have an impact on its performance.
People – The workers who perform the process.

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Variation
Common Cause
(natural/inherent)
Special Cause
(assignable/imposed)
 Common Cause – natural inherent causes from the interaction of all of the sources
of variation.
 Can only be reduced by changing the process
 Special Cause – assignable cause from especially large influence by one of the
sources of variation.
 Must be removed or reduced for a process to be considered stable or in control
Approximately 85 to 95 percent of variation within a process can be attributed to
the overall system in which the work is done rather than to the individuals
involved in the process
Two Types of Variation Defined
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Where does process variation come from in the first place? Given the same
input, shouldn’t the process produce the same output every time?
Dr. Walter Shewhart wrestled with this dilemma in the 1920s. He discovered that
process variation has two components: a stable, omnipresent variation inherent
in the process; and an unstable, intermittent variation attributable to assignable
causes.
Total Process Variation = VARSPECIAL + VARCOMMON
SPECIAL CAUSE COMMON CAUSE
Special Cause vs. Common Cause Variation
35
 New procedure
implemented
 Machinery failure
 Power outage
 Untrained operator
 Employee strike
 Improper setup
 Different levels of
training
 Inadequate
inspection/test
 Lack of machinery
capability
 Failure to understand
customer requirements
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Common
Cause
Special
Cause
Not significantly
influenced by one
of the sources
Significantly
influenced by one
of the sources
 Expected
 Predictable
 Normal
 Random
 Chance
 Unexpected
 Unpredictable
 Not Normal
 Not Random
 Chance
It is important to understand this distinction so the strategy for process
improvement and control can be determined.
Characteristics of the Two Types of Variation
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Common
Cause
Investigate to
determine the “vital
few” causes (X’s)
Develop solutions
for “vital few”
causes
The actions that will be taken are driven by the type of variation.
Analyze and Improve Phases
Special
Cause
Investigate the
specific causes from
the problem source
Develop solutions
and implement as
needed
Measure Phase
Improvement Strategies for Common and Special
Causes
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The first question most teams will ask is “How do we know whether we have
common cause or special cause variation?”
Distinguishing Common Cause vs. Special Cause
Variation
2 tools that
distinguish
Common and
Special
Cause
Run Chart
Control Chart
38
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Run Charts – time ordered plots of data that can be used to search for
special cause variation.
Run Charts and Variation
39
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Advantages
 Most data collected over
time can be used
 Provides baseline of
current process performance
 Easy to create
 No calculations needed
 Easy to interpret
Disadvantages
 Detecting special causes
takes time
 Won’t detect:
 Short duration shifts
 Variation increases
 Hard to assess process
capability
Run Chart Advantages and Disadvantages
40
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Run Charts should be used in conjunction with the Histogram to develop a full picture of process performance. A process may not have detectable patterns of special cause variation, but have considerable variation that can only be determined when using the Histogram.

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Control Charts – similar to the run chart, control charts are time-ordered plots
of data that can be used to search for special cause variation. The additional
benefit of control charts is that they also have “control limits”.
Upper Control
Limit
Lower Control
Limit
Control Charts and Variation
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Control limits are calculated at 3 standard deviations on either side of the mean (or center line).

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Control Limits – are a statistical calculation from the process data and define
the boundaries of common cause variation. Remember that a process is
considered out of control if it contains special cause variation.
Upper Control
Limit
Lower Control
Limit
 Defined based on the performance of the process
 Help to determine if your process in “in control”
(only common cause variation is present)
 Plotted on control charts by statistical calculation
 Can change based on changes to the process
“Control Limits”
Control Limits Defined
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Control limits (UCL and LCL) may be recalculated when the following
guidelines have been met.
 No special cause variation exists in the process
 Either the methods of collecting or operational definitions of the
data have changed in the process
 When a change in the process has occurred that has fundamentally
changed the performance in the process
Recalculating Control Limits
43
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 Defined by the customer
 Help determine if the process is
producing defects
 Not plotted on control charts
 Change when customers
requirements change
 Defined by the process
performance
 Help determine if the process is in
control
 Plotted on control charts
 Change when the process changes
Upper Control
Limit
Lower Control
Limit
“Control Limits” Voice of
Process
Upper Spec
Limit
Lower Spec Limit
“Spec Limits”
Voice of
Customer
Control Limits vs. Specification Limits
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 Only common cause variation is present
in the process
 The process is predictable
 The process is stable
A process that is “in control” may not be meeting
customer requirements
Definition of Control
45
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Look for patterns in the graph that indicate special cause. Patterns to look for are:
Shift – 8 or more consecutive points on the
same side of the center line
Outlier – 1 or more points that fall outside of
the control limits
Trend – 6 or more consecutive points
increasing or decreasing
Cycle – Data points that cycle up and down
Interpreting Control Charts
46
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We can conclude that special cause variation is present if one of these patterns is present in the data. Next steps would include:
Investigate the specific data points where the pattern occurs
Determine the source of the variation
Develop solutions and implement as needed

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In addition to the previous patterns, when the Control Chart is divided into zones, as shown
below, a process is out of control when any of the following is true:
 2 points out of 3 consecutive points are on the same side of the average in Zone A or
beyond
 4 points out of 5 consecutive points are on the same side of the average in Zone B or
beyond
 There are 15 consecutive points within Zone C (above and below the average)
UCL
CL
LCL
Zone A
Zone B
Zone C
Zone B
Zone C
Zone A
Interpreting Control Charts
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By dividing the control chart into zones, we can better detect special cause variation. Each zone represents standard deviations from the mean:
Zone C represents +/- 1 standard deviations from the average (center line)
Zone B represents +/- 2 standard deviations from the average (center line)
Zone A represents +/- 3 standard deviations from the average (center line)

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2 points out of 3 consecutive
points are on the same side of
the average in Zone A or beyond
UCL
CL
LCL
A
B
C
C
B
A
UCL
CL
LCL
A
B
C
C
B
A
4 points out of 5 consecutive
points are on the same side of
the average in Zone B or beyond
There are 15 consecutive points
within Zone C (above and below
the average)
UCL
CL
LCL
A
B
C
C
B
A
Examples of Zone Variation Detection
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Use this chart to select the type of control chart to use.
Discrete
ImR Chart
Continuous
Type of Data
Subgroup Size
of 1
Rational Small
Subgroups (<8- 10) Rational Large Subgroups (>8-
10)
X and S
Chart
_
np Chart
Classification
(binomial data)
Sample Size is
Constant
Sample Size
Varies p chart
u Chart
Count
Opportunity
Varies
Opportunity is
Constant c chart
OR
OR
OR
OR
OR
X and R
Chart
_
Selecting a Control Chart
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For X-bar and R and X-bar and S you will need to collect data in sets of points called subgroups, or logical groupings of data.

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Overview of the different types of control charts
Discrete data control charts:
np Chart – used with classification data (i.e. pass/fail, good/bad) and charts the number of
defectives in each subgroup (sample size is constant).
p Chart – used with classification data (i.e. pass/fail, good/bad) and charts the proportion of
defectives in each subgroup (sample size varies).
u Chart – used with count data (e.g. number of defects) and charts the number of defects
per unit sampled in each subgroup (opportunity for defects varies).
c Chart – used with count data (e.g. number of defects) and charts the defect count per
sample (opportunity for defects is constant).
Continuous data control charts:
ImR Chart (Individuals) – for analyzing individual data points and rational subgroups can
not be formed from the data (data is assumed to be normally distributed).
X and R Chart – for analyzing the averages of small subgroups (<8-10) can be formed from the data. X and S Chart – for analyzing the averages of large subgroups (>8-10) can be formed from
the data.
Selecting a Control Chart
50
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What you learned during this section:
 What common cause and special cause variation are
 How to develop a Run Chart and Control Chart and use them
to distinguish common and special cause
 How to select the appropriate control chart based on the type of
data
Summary of Section
51
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Define Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine MeasureMeasure ControlControlAnalyzeAnalyze ImproveImprove
End of Lesson: Measure – Describe and Display Data
Lean Six Sigma Training
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Define Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine MeasureMeasure ControlControlAnalyzeAnalyze ImproveImprove
Yield
Sigma
Measure – Baseline Performance
Lean Six Sigma Training
Process Capability
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 Understand the concept and benefits of sigma
 Understand how sigma relates to process capability
 Utilize the formula to calculate baseline performance
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
2
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By now, you have gathered your data from Outputs (Y’s) and Process and Inputs
(X’s). You have displayed and described your data. The next question to solve is:
How well is my process performing against my
customer’s requirements?
Voice of Process
(variation)
Voice of
Customer
(CTQ’s)
I P O C
?
Measure Phase Review
3
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Sigma is a name given to indicate how much of the data falls within the
customers’ requirements. The higher the process sigma, the more
the process outputs, products and services, meet customers’
requirements – or, the fewer the defects.
Sigma is a Measurement scale which
compares the output (variation) of a
process to the customer’s requirements
(CTQ’s). Sigma shows how capable a
process is of meeting CTQ’s.
What is Sigma?
4
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Defects are defined as not meeting customer requirements. Put simply, sigma is the measure of how far a process is away from achieving near perfect customer satisfaction. Six, or 6 Sigma is measured at near perfect… meeting customer expectations 99.99966% of the time.

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If you were the VP of a company and these were current process performance
figures, how would you know which process is performing better?
Process Performance
Customer Service Speed of answer is 20
seconds
Systems
Loan Processing
Systems up time is 95%
Loans processed on
average 15 days
Why Having a Common Metric for
Comparison is Critical
5
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It’s difficult to compare processes with very different kinds of measures. There is no common metric between these processes.

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In this diagram, the number of occurrences that fall outside of the customer requirement
for Process A are considered defects. Process B represents the optimal performance
(most capable) with no occurrences (defects) outside of the requirement.
B
Product or Service Output
Critical to Quality (CTQ)
Defects: Service
unacceptable to
customer
A
Optimal Performance
Process Variation and CTQ’s
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Process A has considerable variability or spread and is not meeting the critical customer requirement (identified by the defects). By reducing the variation and mean of the process (B), the process is more capable of meeting customer requirements and will lead to higher sigma performance and greater customer satisfaction.

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The most capable process has variation and mean that are well within
customer requirements.
Product or Service Output
Critical to Quality
(CTQ)
Sigma is calculated by the variation against the CTQ’s, so
the smaller the variation the higher the Sigma.
Capable Process
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There are 2 ways a process can be non-capable.
Product or Service Output
Critical to Quality
(CTQ)
Defects:
Service
unacceptable to
customer
High Process Variation – the process
variation exceeds the customer
requirement (specification limits which
could have a lower or LSL and upper or
USL)
Process Mean Not Aligned – the
process mean exceeds the customer
requirement (specification limits which
could have a lower or LSL and upper or
USL)
Product or Service Output
Critical to Quality
(CTQ)
Defects:
Service
unacceptable
to customer
Product or Service Output
Critical to Quality
(CTQ)
Defects:
Service
unacceptable
to customer
Non-Capable Process
8
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The term “Six Sigma” refers to process capability equivalent to produce 3.4
defects per million opportunities (DPMO). A defect is considered any event which
fails to meet customer critical-to-quality (CTQ) requirements, while an opportunity
is any event where failure to meet CTQs is possible.
99% performance is generally considered quite good. Yet if many of the
processes we encounter in our daily lives functioned only at 99% effectiveness,
we would reconsider our definition of “good” performance:
 20,000 lost articles of mail per hour
 15 minutes worth of unsafe drinking
water each day
 5000 incorrect surgical operations a
week
 2 short or long landings at most major
airports every day
 No electricity for 7 hours per month
99% Defect-Free 6σ (99.99966% Defect-Free)
 7 lost articles of mail per hour
 9 seconds worth of unsafe drinking
water each month
 2 incorrect surgical operations a
week
 1 short or long landing at most major
airports every 4 years
 No electricity for 1 second per year
(Adapted from Mikel J. Harry, The Nature of Six Sigma Quality, 1987)
Which world would you rather live in?
Sigma Defined
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With performance at 2 Sigma:
69.146% of products and/or services meet customer requirements with
308,538 defects per million opportunities.
With performance at 4 Sigma:
99.379% of products and/or services meet customer requirements… but
there are still 6,210 defects per million opportunities.
With performance at 6 Sigma:
99.99966% – As close to flaw-free as a business can get, with just 3.4
defects per million opportunities (e.g., products, services or transactions).
Sigma Performance
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Most companies measured, prior to business performance improvement, perform around a 1 to 2 sigma, which equates to meeting customer expectations only 30.9% to 69.1% of the time.
These numbers are staggering and can be extremely detrimental to customer satisfaction with products and services. Although 6 Sigma is difficult to achieve in some industries, a 3.5 Sigma (meeting customer expectations 97.7% of the time) is realistic for most service related companies.

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A capable process is statistically defined as a process that has all of its
variation within 6 standard deviations (sigma’s) of the customer requirements.
Number of Standard Deviations from the Mean
x
-6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6
Standard
Deviations (Sigma’s)
1
2
3
4
5
6
% of Data
Between Limits
68.26
95.46
99.73
99.9937
99.999943
99.9999998
CTQ
(Upper Spec)
CTQ
(Lower Spec)
Capable Process and Sigma
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 A measurement scale focused on improvement
 Focuses on defects
 Common metric for comparison
Why Sigma Measures?
12
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Yield exclusive of rework at a process stepFirst time yield
A unit with one or more defectsDefective
Any event which can be measured that provides a chance of not
meeting a customer requirement
Defect Opportunity
Any event that does not meet the specification of a CTQ. For
DPMO method, defects or non-defects must be at least 5*.
Defect:
The item produced or processed – either a product or service
transaction
Unit:
How these are operationally defined is critical to your
data collection effort
*Additional methods for calculating Six Sigma are utilized when defects and non-
defects are <5. These methods are an advanced statistical technique that will not be covered in this course. Six Sigma Calculation Definitions – DPMO Method 13 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  There may be more than one defect opportunity per unit.  Ex. Fields on an invoice  The opportunity for the defect must be important to the customer (relate directly to a CTQ).  Ex. Only count fields on an invoice that are requirements of the customer  Don’t count every field, doing this can inflate the opportunities and the sigma  Some defects may cause others. Only count the original defect as the opportunity. Guidelines for Determining Opportunity 14 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Unit Defect Opportunity Invoice Incorrect fields identified by customer The fields on the invoice Employee Check Customer Phone Call Check not received on date specified Call not answered within 30 seconds Each check processed Each customer call Six Sigma Calculation Definition Examples 15 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. General Worksheet for Calculating Process Sigma (DPMO) 1. Number of Units Processed (N) N = __________ 2. Total Number of Defects Made (D) (Include Defects Made and Later Fixed) D = __________ 3. Number of Defect Opportunities Per Unit (O) O = __________ 4. Solve for Defects Per Million DPMO = 1,000,000 X Opportunities =1,000,000 X = __________ 5. Look up Process Sigma in an Abridged Sigma Conversion Table = __________ Sigma D N•O ( ) ( ) ( ) Sigma Calculator 16 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Unit Defect Opportunity Employee Check Check not received on date specified Each check processed Unit = Employee Processed Checks Critical to Quality (CTQ) = 5th of each month Defects: Checks received after 5th Total Opportunities Calculating Process Sigma (DPMO) Example 17 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Calculating Process Sigma (DPMO) Example 1. Number of Units Processed (employee checks) N = __________ 2. Total Number of Defects Made (checks received after the 5th) D = __________ 3. Number of Defect Opportunities Per Unit (each check) O = __________ 4. Solve for Defects Per Million DPMO = 1,000,000 X Opportunities =1,000,000 X = 356,000 1,000 356 1 D N•O ( ) ( ) ( ) 356 1,000 1 A company that pays its employees on the 5th of the month, has collected data on the number of checks that are received by the employee after the required date. 18 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Yield Sigma DPMO Yield Sigma DPMO 99.99966% 6.00 3.4 98.60966% 3.70 13,903 99.99946% 5.90 5.4 98.21356% 3.60 17,864 99.99915% 5.80 8.5 97.72499% 3.50 22,750 99.99867% 5.70 13 97.12834% 3.40 28,717 99.99793% 5.60 21 96.40697% 3.30 35,930 99.99683% 5.50 32 95.54345% 3.20 44,565 99.99519% 5.40 48 94.52007% 3.10 54,799 99.99277% 5.30 72 93.31928% 3.00 66,807 99.98922% 5.20 108 91.92433% 2.90 80,757 99.98409% 5.10 159 90.31995% 2.80 96,800 99.97674% 5.00 233 88.49303% 2.70 115,070 99.96631% 4.90 337 86.43339% 2.60 135,666 99.95166% 4.80 483 84.13447% 2.50 158,655 99.93129% 4.70 687 81.99519% 2.40 184,060 99.90323% 4.60 968 78.81446% 2.30 211,855 99.86501% 4.50 1,350 75.80363% 2.20 241,964 99.81342% 4.40 1,866 72.57469% 2.10 274,253 99.74449% 4.30 2,555 69.14625% 2.00 308,538 99.65330% 4.20 3,467 65.54217% 1.90 344,578 99.53388% 4.10 4,661 61.79114% 1.80 382,089 99.37903% 4.00 6,210 57.92597% 1.70 420,740 99.18025% 3.90 8,198 53.98278% 1.60 460,172 98.92759% 3.80 10,724 50.00000% 1.50 500,000 Abridged Sigma Table (For calculation of long-term sigma, subtract 1.5 sigma) 4. Solve for Defects Per Million Opportunities = 5. Look up Process Sigma in an Abridged Sigma Conversion Table = __________ Sigma 1.90 356,000 Calculating Process Sigma (DPMO) Example 19 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Time Co nt in uo us D at a Long-Term Data Short-Term Data The amount of variation in the process is influenced by whether the data is long-term or short-term.  Long-Term Data – Data that is collected over a long enough period of time that it contains the diversity of conditions within the process to contain large process shifts and special causes.  Short-Term Data – Data that is collected over a short enough period of time that large shifts and special causes are not likely to occur. For the purposes of this training, all data (continuous and discrete) will be treated as long-term data and contain short-term process sigma's that are automatically built into the Abridged Sigma Table. Long-Term vs. Short-Term Data 20 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  The concept and benefits of utilizing sigma  How sigma relates to process capability  How to calculate baseline performance with sigma Summary of Section 21 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine MeasureMeasure ControlControlAnalyzeAnalyze ImproveImprove Yield Sigma Measure – Baseline Performance Lean Six Sigma Training Process Capability 22 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand the concept of process yield By the end of this section, you will be able to: Overview – Objectives – Key Topics 23 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Buy Seed Sell Corn Plant Seed Gather Corn 45,000 PPM Wasted 95.5% Yield Following Excess Disposed and Lost Seed… 21,965 PPM Wasted 97.7% Yield Following Damaged and Underdeveloped Corn… 46,652 PPM Wasted 95.0% Yield Available to Sell After Packaging 113,617 Parts Per Million Wasted Opportunities Concept of Yield 24 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Yield and Defect Counts are related measures Ex. 356,000Ex. 0.356Ex. 64% = 1,000,000 ●== 1 - The count of defects per opportunity times 1 million in products or services The count of defects per opportunity in products or services The % of good products or services Defects per Million Opportunity (DPMO) Defects per Opportunity (DPO) Yield D N•O D N•O D N•O Yield and Defect Count 25 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. If you were the VP of a company and these were current process performance figures, how would you know which process is performing better? Customer Service Speed of answer is 20 seconds Process Performance Sigma Systems Loan Processing Systems up time is 95% Loans processed on average 15 days 4.8 Sigma 3.2 Sigma 2.1 Sigma Why Having a Common Metric for Comparison is Critical 26 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: With sigma included, we have a common metric in order to gauge process performance. Loan Processing is not meeting customer requirements based on the low sigma. Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  The concept of process yield Summary of Section 27 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine MeasureMeasure ControlControlAnalyzeAnalyze ImproveImprove Yield Sigma Measure – Baseline Performance Lean Six Sigma Training Process Capability 28 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Overview – Objectives – Key Topics  Understand the concept of Process Capability  Understand the necessary data and calculations to determine Process Capability  Calculate Process Capability By the end of this section, you will be able to: 29 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What is Process Capability Process Capability measures the Voice of Process against its ability to meet Customer Requirements (Voice of the Customer). Voice of the Customer Voice of Process U pp er S pe ci fic at io n Li m it Lo w er S pe ci fic at io n Li m it Is this process capable of meeting customer requirements? 30 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Why Process Capability  Provides a single value to assess the capability of a process in meeting customer expectations.  Evaluates the baseline of a process against customer expectations.  Validates the capability of a process over time.  Validates the capability of a pilot against expected results.  Capability indices are without a unit (i.e. does not have a value like minutes, dollars, etc,) therefore you can compare one process to another. 31 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Process Capability Assumptions  Data is normally* distributed  Data is continuous*  Process is in statistical control  Data is time ordered *Process Capability can be calculated for non-normal data and discrete data. This course will only cover calculating Process Capability for normal continuous data. 1019181716151413121111 30 15 0 In di vi du al V al ue _ X=15.42 UCL=29.74 LCL=1.10 1019181716151413121111 20 10 0 M ov in g R an ge __ MR=5.38 UCL=17.59 LCL=0 I Chart Moving Range Chart Control Chart for Cycle Time 3020100 Normal Prob Plot A D: 0.580, P: 0.128 32 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Capability Roadmap for Normal Continuous Data Start YES NO LSL USL Is Short Term Data Available ? Conduct Capability Analysis & Specify Subgroup Size for Short Term “Subgroup Data Set” Conduct Capability Analysis in Long Term with Subgroup Size of “1” Note: Look at Both Short Term & Long Term Data Note: Only Look at Long Term Results Conduct Analysis Calculate Sigma Levels To Further Understand Results (not covered in this course) 33 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Process Capability Definitions – Capability Indices  Cp (short term data) or Pp (long term data) = Potential capability of the process or the ratio of the Specification Range (Voice of the Customer) to the natural range of the process, it does not look at how well the process average is centered to the target value. This value gives you an idea of whether the process could meet customer requirements. Example: Let’s say you are driving your car into your garage, Cp tells you if you are capable in the short term of fitting into the garage or not. It does not tell you if the driver has driven in straight or centered the car properly. Pp tells you if you are capable of fitting into the garage over the long term.  Cpk (short term data) or Ppk (long term data) = Actual capability of the process and takes into account the location of the process average. Example: Let’s say you are driving your car into your garage, Cpk tells you if you are capable in the short term of fitting into the garage or not, and if the driver has driven in straight or centered the car properly. Ppk tells you if you are capable of fitting into the garage in the long term and if the driver has driven in straight or centered the car properly. Note: The problem with Cp or Pp is that it is a theoretical capability (entitlement) and you cannot compare two processes that have the same Cp or Pp when one is off center (obviously creating defects). 34 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Calculating Process Capability  Step 1: Identify/Calculate the following from your data: a. Identify Specification Range  Upper Specification Limit: USL and/or  Lower Specification Limit: LSL b. Calculate the Process Range  Standard Deviation: “s” c. Calculate the Location of the Process  Process Average: “X” 35 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Calculating Process Capability  Step 2: Determine if your data is Short Term or Long Term. Data tends to vary over time due to many internal and external factors. It is important to separate short term from long term data in order to determine current process capability.  Short Term data generally does not include special cause variation. Example: data collected only for: 1 day, 1 operator, or 1 call center rep.  Long Term data includes the effects of special cause variation. This means that you have collected enough data over a long enough period of time to be confident that you have seen 80% of the process variation. This is the variation that the customer actually experiences over the long term. Example: data collected for multiple: days, operators, or call center reps. Time A B D C A + B + C + D The truth about process capability is Long Term. So you have to determine what type of data you have and convert it from Short Term to Long Term. 36 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Sigma values for Long Term data are generally lower than Sigma values for Short Term data. The difference between the two is called Sigma Shift. The Sigma Shift from Long Term to Short Term is 1.5 Sigma. Example, to convert Short Term Sigma into Long Term Sigma you will need to subtract 1.5 Sigma from the Short Term Sigma value. Copyright © 2016 Acuity Institute LLC. All rights reserved. Calculating Process Capability  Interpreting Cp and Pp Values:  Above 1.33 is acceptable and capable of meeting customer expectations In general, the higher the Cp or Pp value, the more capable your process is.  Cp or Pp Interpretation Example: A value of 1 would mean the Specification range and the Process range are the same and that any variation would mean the process could easily not meet the customer requirements therefore 1.3 and greater is acceptable.  Step 3: Calculate and Interpret Process Capability  Cp (short term data) or Pp (long term data) = Voice of Customer Voice of the Process USL - LSL 6 * s = Requires both USL and LSL 37 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Calculating Process Capability  Step 3: Calculate and Interpret Process Capability  Cpk (short term data) or Ppk (long term data)=  Interpreting Cpk and Ppk Values:  Below 1.0 is generally not acceptable for meeting customer expectations  Above 1.33 is acceptable and capable of meeting customer expectations Min*: In the case that you have both USL and LSL, calculate both values and report the lower value. Note: Cpk or Ppk divides the formula of Cp or Pp into 2 and takes into account where the process is situated. 38 Cpk or Ppk = Min* USL - X 3 * s X - LSL 3 * s or This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Cpk or Ppk & Z score (Z score = the number of standard deviations that can fit between the mean and the nearest customer specification limit). Something interesting that explains what range is acceptable and how short term, long term and Z score tie together. Cpk = Z(short term) / 3 & Ppk = Z(long term) / 3 or 3 * Cpk = Z(short term) So Z(short term) = 6 sigma then Cpk = 6/3 = Cpk of 2 Z (long term) = 6-1.5(shift for conversion to long term from short term) = Ppk 4.5/3 = 1.5 So a capability of 1 means the process is just capable and 2 is Six Sigma so the range has to depend on the requirements of the process. Some processes need to be closer to 2 and for others it is okay to be at 1. Copyright © 2016 Acuity Institute LLC. All rights reserved. Summary of Section What you learned during this section:  The concept of Process Capability  The necessary data and calculations to determine Process Capability  How to calculate Process Capability 39 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine Measure ControlAnalyze ImproveDefine MeasureMeasure ControlControlAnalyzeAnalyze ImproveImprove End of Lesson: Measure – Baseline Performance Lean Six Sigma Training 40 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Analyze Phase Lean Six Sigma Training 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Analyze Phase Overview Lean Six Sigma Training 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. In Analyze, the questions of why the organization is unable to meet customer requirements is understood. Analyze utilizes both process and data analysis techniques to drill down to the root cause problems that will ultimately lead to solutions. Analyze also keeps the team from jumping to premature solutions from Measure. Analyze Phase Introduction 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Identify Potential Root Causes  Identify Value Added and Non- Value Added Processes  Identify Cause and Effect Relationships  Analyze the Data and Process to Determine Root Causes ANALYZE CONTROL IMPROVE MEASURE DEFINE Why are customer hold times so long? Machinery Methods People Inconsistent processes Too much rework Systems do not interact Too much review Use different technology platforms Customer information is not easy to access Reps are not well trained International Products “As-Is” Process Map (Page 1) R ea l Es ta te Ag en t (R A) IP M or tg ag e Sa le s As so ci at e (M SA ) IP L oa n Pr oc es so r (L P) IP L oa n O ffi ce r (L O ) H om e Lo an C us to m er Contact RA to request loan Mail loan application to customer Complete loan application Mail loan application to RA Forward application to MSA Forward application to LP Review application Request additional info from customer Gather additional information Mail additional information to LP Go to Step 12 (Next Page) Review application and additional information 1 2 3 4 5 6 7 8 9 10 11 X = Non-Value Added Step X X X X X X X X X y = 15.213x + 0.7012 R2 = 0.5149 0 1 2 3 4 5 0.00 0.05 0.10 0.15 0.20 0.25 % of Defective Incoming Applications # o f F in al De te rm in at io n Pa ck ag es w ith E rro rs Analyze Phase Overview 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Necessary to identify the “real” root causes of a problem  Ensures accurate focus on the real culprit so we avoid jumping to the wrong conclusions and solutions  Enables understanding of the magnitude of the problem  Provides understanding of what is causing variation Why Analyze is So Important 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Process Variables (Xs) Process Input Variables (Xs) Outputs (Ys) Analyze the Process to Identify the Critical X’s 6 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Definitions Outputs Product or service produced or delivered �by the process. Process Variables (Xs) Those variables that influence the output and are generally controllable by those who operate the process. Input Variables (Xs) Materials and information used by the process to create the outputs. Inputs are often outside the control of the internal operations group. Copyright © 2016 Acuity Institute LLC. All rights reserved. For every process there is a dependent variable called Y that we are attempting to influence. The independent variables which determine what happens to our Y are called the process X’s. Thus, we can boil down every process into a simple formula: The goal of analyze is to understand the relationship between our various Xs and our Y, so we can manipulate the Xs to modify Y as desired, then lock down the process so that Y remains within the proper range and is meeting customer requirements. The Focus of Process Analysis Y = f(x1,x2,x3…xn) 7 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Process Variables (Xs) Process Input Variables (Xs) Outputs (Ys) Narrow down to the vital few process X’s that will be useful in indicating the final process output (measures conformance to CTQ) Identify which of these has the greatest impact or affect on the output and its performance against the customer requirements The performance of the Y indicates whether customer requirements have been met or not Analyze Which are the Most Critical Process Variables Y = f(x1,x2,x3…xn) 8 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Process Door Data Door 0 2 4 6 8 10 12 In the analyze phase, improvement teams will go through both the process “door” and the data “door” using both process tools and data tools to identify and validate root causes. Analyze Phase Overview 9 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: It is recommended to go through both “doors” to make sure that potential causes and opportunities are not overlooked and true root causes are validated by statistical analysis. Chart1 2 5 6 7 10 8 6 3 2 Sheet1 2 5 6 7 10 8 6 3 2 Sheet1 Sheet2 Sheet3 Copyright © 2016 Acuity Institute LLC. All rights reserved. Analyze the Process Develop Theories and Formulate Potential Causes Analyze the Data Understand Cause and Effect and Verify Root Causes • Process Value Analysis • Lean Measures • Value Stream Mapping • Error Proofing • 5s and Waste • Fishbone Diagram • 5 Whys • Histogram • Pareto • Box Plot • Scatter Diagram • Regression Analyze Tools Analyze Approach 10 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Analyze Phase Deliverables Define Measure Analyze Improve Control Project Charter Project Management Project Plan Process Definition SIPOC As-Is Process Map Quick Win Identification Stakeholder Management Stakeholder Map Stakeholder Management Plan Communication Plan Voice of Customer Customer Identification VOC Research Plan Kano Analysis CTQ Identification  Root Cause Analysis Affinity Diagram Fishbone Diagram and/or 5 Why’s Lean Process Analysis Lean Tools and Measures Graphical Data Analysis Histogram Pareto Chart Box Plots Correlation Analysis Statistical Data Analysis Linear Regression Multiple Regression Root Causes Identified Quick Win Identification Identify Measures X/Y Matrix Data Collection Operational Definitions Measurement Systems Analysis (MSA) Data Collection Plan Describe and Display Data Histogram Pareto Chart Pie Chart Run Chart Control Charts Baseline Performance Sigma Performance Yield Process Capability Quick Win Identification Identify and Select Solutions Generate Solutions Benchmarking Solutions Prioritization Matrix Solution Selection Matrix To-Be Process Map Financial Impact of Solutions Cost/Benefit Analysis Risk Planning and Testing Failure Modes and Effects Analysis (FMEA) Pilot Plan Implement Solutions Multi-Generational Product Plan (MGPP) Implementation Plan Stakeholder Management Project Storyboard Process Control Control Charts Process Monitoring Plan Dashboard Response Plan Project Documentation Process Procedures Replication Opportunities Solution Transfer Plan 11 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. End of Lesson: Analyze Phase Overview Lean Six Sigma Training 12 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlImproveDefine Analyze ControlMeasure ImproveDefine Measure ControlImproveDefine Analyze ControlMeasure Improve Analyze – Root Cause Analysis Lean Six Sigma Training Root Cause Analysis 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand how to use an affinity diagram to identify and organize potential root causes  Learn how to develop and analyze a cause and effect diagram  Understand how the “five why’s” technique can guide a team to identify deeper root causes By the end of this lesson, you will be able to: Overview – Objectives – Key Topics 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Identifying Potential Causes – Where to Begin? Add res s Inac cur ate Line Item T ota l Am oun t Ove rch arg e Oth ers 42 32 14 9 3 42.0 32.0 14.0 9.0 3.0 42.0 74.0 88.0 97.0 100.0 0 50 100 0 20 40 60 80 100 Defect Count Percent Cum % Pe rc en t C ou nt Pareto Chart for Statement Accuracy 9080706050403020100 60 50 40 30 20 10 0 Average Hold Time # of C al ls January Avg. Hold Time Distribution Plot  A good starting point for analysis is to go back to the data that was collected and graphed during the Measure phase to begin to formulate possible causes  The data display tools that were conducted in Measure that described the process and indicated information on variation, distribution, and defects can be helpful in developing theories on potential causes I-MR or Individuals Control Chart 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Identifying Potential Causes – Where to Begin? Add res s Inac cur ate Line Item T ota l Am oun t Ove rch arg e Oth ers 42 32 14 9 3 42.0 32.0 14.0 9.0 3.0 42.0 74.0 88.0 97.0 100.0 0 50 100 0 20 40 60 80 100 Defect Count Percent Cum % Pe rc en t C ou nt Pareto Chart for Statement Accuracy Pareto Chart  The largest defect/problem area(s) indicated on the Pareto point to the section(s) of the process the team should focus on to formulate potential causes  A Pareto can help prioritize analysis efforts 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Brainstorming  Affinity diagram (previously seen in define)  Cause and Effect Diagram (Fishbone)  The “Five Why’s” There are several tools that a team can employ to identify potential root causes. Some of these tools include: These tools can be used as stand alone tools or in some cases in conjunction with one another to drill deeper into potential causes. Lack of staffing Poor Training Missing info Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Identifying Potential Causes EFFECT Cause A Cause D Cause C Cause B 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Purpose  Brainstorming is a method of generating lots of ideas quickly  Encourage creativity  Involve everyone  Generate excitement and energy  Separate people from ideas they suggest  Uses in Analyze  Use brainstorming to generate a lot of potential causes of the problem you defined in Measure  Key question is “why does that happen?” Identifying Potential Causes – Brainstorming 6 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Brainstorming 1. Generation 2. Clarification 3. Evaluation Brainstorming  The Generation phase is a free open forum for all participants to generate ideas.  During the Clarification phase of brainstorming, the team reviews the list to make sure everyone understands all the items.  During the Evaluation phase of brainstorming, the team reviews the list to eliminate duplicates or combine like items. Stages of Brainstorming 7 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Rules for Brainstorming:  Clearly state purpose of what you are brainstorming  Each person takes a turn, in sequence, around the group  Present one thought at a time  Do not criticize or discuss any idea  Build on ideas of others  Record ideas and make visible to the whole group (flipchart) Brainstorming 8 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Problem: Why do 85% of claims take 37 days or longer to pay? Lack of staffing Poor Training Missing info Process Difficult Cause CauseCause Cause A Cause B Cause C Cause D Cause E Cause F Cause ResponseCause ResponseCause ResponseCause ResponseCause G Cause ResponseCause ResponseCause H Cause I Cause J Cause K Cause ResponseCause L Cause M Cause N Like or similar causes Cause Category An affinity diagram can help a team organize brainstormed potential root causes Good tool to use as pre-cursor to a fishbone diagram or 5 Why’s Identify and Organize Potential Causes – Affinity Diagram 9 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Instructions for Affinity Diagram:  Brainstorm potential causes of problem, write down the feedback on sticky notes.  Post the stick notes to a white board or flip chart paper.  Once completed, sort issues into 4 – 8 related groups.  Create a summary issue category for each issue group. Make sure everyone agrees to headings. Identify and Organize Potential Causes – Affinity Diagram 10 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Finds major themes out of large number of ideas  Groups items that are naturally related  Identifies one concept that ties each grouping together  Creative, rather than logical  Good tool to facilitate consensus on major cause categories Affinity Diagram Summary 11 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Fishbone diagrams, also known as “cause-and-effect” diagrams, are employed to help teams brainstorm possible causes of a problem (or effect) and rationally group potential causes together. This diagram is called a fishbone as it resembles the skeletal structure of a fish once completed. Fishbone Diagram Problem Statement Main Category A Main Category C Main Category B Potential Root Cause Cause Cause Cause Potential Root Cause Potential Root Cause Primary Effect Potential Causes Identify Potential Causes – Fishbone Diagram 12 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: A Fishbone Diagram (also known as a Cause and Effect diagram is the starting point for analysis. Based on the organizations experience, a problem is drilled down to potential causes by asking the question “Why”, thus showing the cause of each effect until the team is satisfied that they have reached the low-level cause (potential root cause). These low-level causes are then validated through data analysis. Copyright © 2016 Acuity Institute LLC. All rights reserved. Fishbone diagrams link potential causes to effects  To brainstorm potential root causes to a problem (effect)  To identify reoccurring causes across multiple fishbone categories  To create a visual picture that identifies the link between cause and effect  To provide areas (potential causes) where data can be collected for root cause validation Fishbone… ...Get it? Fishbone Diagram Uses 13 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. STEP 1: Draw a box on the far right-hand side of the paper with a horizontal arrow to the box and write the description of the problem in the box. It is critical for the team to agree upon the problem under study. In most cases, the problem will be identical to the definition of Y. STEP 2: As a team, come to consensus on the 4-5 major cause categories to use on the fishbone diagram. Write the names of the major cause categories above and below the horizontal line. Connect them to the “back bone” of the fish. EFFECT Cause C Cause A Cause BCause D How to Construct a Fishbone Diagram 14 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. STEP 3: Brainstorm a list of possible causes that could be driving the problem. Brainstorming can be done by category or can be done prior to placing the potential causes on the major bones. It is recommended that the entire list of possible causes be generated first before attempting to place them on the major category bones. This keeps the creative flow of ideas. STEP 4: Place the brainstormed data causes in the appropriate category. STEP 5: For each cause, drill down into “causes of the causes” by asking repeatedly, “why does this happen?” Arrange contributing causes on the smaller bones. STEP 6: Select 2-3 potential root causes from the fishbone diagram to verify with data. Look for causes that appear repeatedly within or across major bones. Use multi-voting to narrow down the list of potential causes and come to consensus on 2-3 potential root causes from the fishbone diagram to drill down on further with additional analysis tools. STEP 7: Select possible causes to verify with data. How to Construct a Fishbone Diagram 15 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Machines (equipment)  Methods/procedures (how work is done/tasks and steps)  Materials (components or raw materials)  People (the human element)  Mother Nature (Environment)  Measurement (data collection)  Policies (higher level decision rules) Typical categories utilized for the major bones of the fishbone are the following: Other possible categories are:  Utilize the major steps of the process in place of the major cause categories listed above. Note: The key is to select categories that are relevant to the problem that the team is improving. Fishbone Diagram Categories 16 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Why are customer hold times so long? Machinery Methods People Inconsistent processes Too much rework Systems do not interact Too much review Use different technology platforms Customer information is not easy to access Reps are not well trained Potential Causes Call Center Fishbone Diagram Example 17 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: The call center team completed their cause and effect analysis utilizing a fishbone diagram and determined 3 potential root causes. Copyright © 2016 Acuity Institute LLC. All rights reserved. The Five Why’s technique is a classic approach to root cause analysis of a problem situation by asking the question “Why?” a number of times. While the name of the approach contemplates 5 iterations, this is a recommendation only. True root causes generally are deep, not as simple as first suspected. In order to get long lasting and far reaching corrective actions in place, the true root cause must be found. If problems are identified before enough questions are addressed, then the problems will diminish at first, but will often resurface. The “5 Why’s” technique digs deep into the root of the problem The Five Why’s technique can be used in conjunction with a fishbone diagram to identify potential root causes or can be used as a stand alone tool to formulate potential root causes. Identify Potential Causes – The Five Why’s 5 Whys 18 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. WHY? Why do we have an increase in customer complaints? Because of late orders. Why don’t the orders leave the store in time? Because the cooks receive the order 10 minutes after the call was received, not instantly as they should. Why do the cooks receive the orders 10 minutes after the calls were received? Because the new order entry method takes longer. Why do we have late orders? Because the orders don’t leave the restaurant in time. Why does the new order-entry method take longer? Because the employees were not properly trained. WHY? WHY? WHY? WHY? The Potential Root Cause - Employee Order Entry Training Deficiency The Five Why’s Example 19 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Helps assign a cause to the correct sub-category  Guides team to deeper root causes  Provides link from effect to cause Purpose of the Five Why’s 20 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this lesson:  How to use an affinity diagram to identify and organize potential root causes  How to develop and analyze a cause and effect diagram  How to use the “five why’s” technique to guide a team to identify deeper root causes Summary of Lesson 21 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlImproveDefine Analyze ControlMeasure ImproveDefine Measure ControlImproveDefine Analyze ControlMeasure Improve End of Lesson: Analyze – Root Cause Analysis Lean Six Sigma Training Root Cause Analysis 22 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlImproveDefine Analyze ControlMeasure ImproveDefine Measure ControlImproveDefine Analyze ControlMeasure Improve Lean Techniques Lean Process Analysis and Measures Analyze – Lean Process Analysis Lean Six Sigma Training Lean Process Analysis 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand the purpose of process analysis  Understand how to calculate Lean measures of time  Understand how to analyze a process to identify potential causes and effects By the end of this section, you will be able to: Overview – Objectives – Key Topics 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Process Door  To analyze and understand current process flow  To identify process efficiency problems and bottlenecks  To establish cause and effect relationships Detailed Process Maps Value Added Analysis Cycle Time Analysis Process Door 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: � Copyright © 2016 Acuity Institute LLC. All rights reserved. To get results, we need to focus in on the X’s Focus on the Process  Y  Dependent  Output  Effect  Symptom  Monitor  X1...XN  Independent  Input or Process  Cause  Problem  Control Response Predictor x x x xx x x x 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Understanding variation requires understanding the relationship between the process response (Y) and the process predictors (Xs).�� Y = f (X1, X2 , . . . , XN )� The process predictors (Xs) affect (drive) the process outputs (Y). Copyright © 2016 Acuity Institute LLC. All rights reserved. Process - Level 1 Step #1 Process - Level 2 Step #1 Step #2 Process - Level 3 Step #3 Step #1 Step #2 Step #3 Step #3 Step #2 Process analysis is typically focused on a level 3 process or below To highlight process problems, break out process steps in detail Selecting the Right Level for Process Analysis 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Drilling down into a detailed process map can provide clues for what is causing our process to not meet CTQ’s  It can help a team begin to identify and formulate what the potential critical X’s are which might be driving the problem and process variation.  Enables a team to identify process streamlining opportunities 1. Activity Yes No Yes No 2. Activity 3. Activity Process Analysis 6 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Review the Detailed Process Map and Identify “Points of Pain”  Examine steps that experience has shown are problem area or “points of pain”. Example: Areas of rework, long delay, or errors  Examine steps that have long cycle times  Examine decision points and handoffs where the process moves from one process customer to the next X1 Inputs to the process X2 “Rework” loops – rework points X3 At the end of major process steps X4 Hand-offs between departments 5 m in 10 m in Customer Claims Reviewer Claims Adjuster Y N X1 X2 X4 X5 X3 X1 Y ? Y Output (Measure of conformance to CTQ) Drilling Down in the Process to Identify Potential X’s 7 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Analysis Techniques – Lean and Six Sigma Six SigmaLean Effect Cause A Cause D Cause C Cause B Quality and Efficiency Improvement Efficiency Improvement Combining Lean and Six Sigma is Best in Class 8 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What is Lean? Lean is utilized for the following purposes:  To reduce or eliminate capacity constraints of the process  To reduce the lead time of the process Inputs Step 1 Step 2 Step 3 Step 4 Bottleneck Outputs 2 Days 10 Days 4 Days 6 DaysInputs Outputs =22 Days 9 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Definition The AIM of Lean is to eliminate waste in every area including:  Customer relations  Product design  Supplier networks  And office management Its GOAL is to incorporate:  Less human effort  Less inventory  Less time to develop products  And less space to become highly responsive to customer demand while producing top quality services in the most efficient and economical manner possible 10 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Concepts – Measures of Time Lead Time: Amount of Time a unit spends in the process  Lead Time (T) = Cycle time (Value Add) and Inactive Time (Non Value Add)  Advantages of Short Lead Times  Customer satisfaction through increased responsiveness  Reduced inventory at constant throughput  Reduced working capital  Increased throughput at constant inventory levels  Increases accuracy Lead Time Non Value Add Value Add 11 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Concepts – Measures of Time Cycle Time: Total time that elapses from the beginning of a process step until its completion. It is the time a unit is being worked on. 12 min 1 min 15 min Cycle Time Start Finish Cycle Time Cycle Time Reference: Value Stream Management for the Lean Office: Don Tapping and Tom Shuker Total Process Cycle Time = 28 minutes 12 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Elements of Cycle Time Cycle Time Value Added Value Activities Decisions Non Value Added Transport Inspection Over Processing Defects / Rework Over Processing Lead Time can be reduced by eliminating Non- Value Added Activities Lead Time can be reduced by reducing the cycle time of value added activities 13 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Efficiency Metrics:  Measure need to reflect how efficiently you are utilizing time and resources  Look at what happens to time and how efficiently we use it.  Here we will learn the Lean Efficiency Metrics of: Applying Lean Can Improve Efficiency Lean Efficiency Metrics 14 - Utilization - Efficiency - Quality - Overall Resource Effectiveness This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What Happens to Time *Service Time = Standard Service Time multiplied by the Quantity Serviced 15 Total Time = Total time in the shift Target Time = Total Time less planned breaks & shutdowns Available Time = Target Time less lost time Effective Time Serviced** Service Time* 450 min. 210 min. 120 min. 1 2 3 4 5 480 min. 540 min. Example: **Effective Time Serviced = Standard Service Time multiplied by the number of good units produced. This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Efficiency Metrics  Utilization, the % of time made available for service  Efficiency, how well did we work while we were working  Quality, the % Good units we serviced out of the total units serviced  ORE (Overall Resource Effectiveness), the % of time that we spent and got back in good units 16 Utilization = Available Time/Target Time Efficiency = Service Time/Available Time Quality = Effective Time Serviced/Service Time ORE = Effective Time Serviced/Target Time This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Process Analysis Tool – Process Value Analysis Non Value-Added Work • Customer does not recognize value in the step • Step is not done right the first time • Step does not change the process Value-Added Work • Customer recognizes the value in the step • Step is done right the first time • Step changes the process Examples of Non Value-Added Work Delay Steps “Re” Steps (ex. Re-Work) “Checker Checking the Checker” Approvals Back Office Internal Failure External Failures Hand-offs 17 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Any steps in the process not meeting value-added criteria is considered non value-added work. Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Analysis – Process Value Analysis Process Value Analysis Process Step 1 2 3 4 5 6 7 8 9 Total % Total Time (Hours) 100% Value-Added Non Value-Added Delay Set-up Inspection Transporting Rework Total To better understand the process  Review detailed process map (deployment flow chart)  Identify which of the process steps are value-added and which are non value-added  Determine cycle time and identify bottlenecks  Look for errors or inefficiencies that contribute to defects Value-Added Questions: 1.Change the process? 2.Customer recognizes the value? 3.Done right the first time? 4.Required by law or regulation? Non Value-Added Examples: - Waiting - Storing - Counting - Inspecting - Recording - Obtaining - Approvals - Reviewing - Copying - Reworking - Filing - Tracking 18 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Analysis – Process Value Analysis  To easily identify non value-add steps in the process, the following symbols can be used to label non value-added activity on the process map:  D = Delay  S = Set-up  I = Inspection  T = Transporting  R = Rework  Lean Six Sigma teams can develop and customize symbols as necessary 19 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Process Analysis Analyzing a process is a valuable tool for identifying process disconnects such as: By linking the cycle time (hours/minutes) with the process analysis, we can begin to develop a complete picture of the need for change and where this change should occur.  Process gaps  Redundant work  Implicit or unclear requirements  Tricky hand-offs  Conflicting objectives  Common problem areas 20 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section: Summary of Section  The purpose of process analysis  How to calculate Lean measures of time  How to analyze a process to identify potential causes and effects 21 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlImproveDefine Analyze ControlMeasure ImproveDefine Measure ControlImproveDefine Analyze ControlMeasure Improve Lean Techniques Lean Process Analysis and Measures Analyze – Lean Process Analysis Lean Six Sigma Training Lean Process Analysis 22 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand how to identify the process value stream  Understand how to indentify opportunities to implement error proofing techniques  Determine how to identify waste in your process By the end of this section, you will be able to: Overview – Objectives – Key Topics 23 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Analysis Techniques 5s & WasteError ProofingValue Stream Identify the Process Value Stream Implement Process Checks to Identify and Fix Incoming / Outgoing Errors Clean Up the Work Environment and Standardize Processes I P O Inputs Process Outputs 24 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Analysis Techniques – Value Stream  Successful companies are sustainable in the long term because they define value from the Customer’s perspective The Flow of Units through a process that produce value to the customer is a Value Stream  Identifying the Value Streams and what value the Customer is prepared to pay for in the Value Stream is the first step in creating a better flow. For each Value Stream, identify the customer’s needs and their demand 25 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What is Value?  Value is defined in terms of specific products and services having specific capabilities, offered at specific prices to specific customers, to be delivered defect- free at specific times  Value must be viewed in terms of the entire Customer Experience  Any action or resource expenditure that does not contribute directly to the goal of creating value is Waste (Muda) and should be eliminated to the greatest extent possible 26 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Difference Between Waste and Value In assessing a process, it is important to understand what activities in the process actually add value to the end result, all other activities are wasteful  CVA (Customer Value-Added - or just VA for Value-Added): an activity that the customer would be willing to pay for in isolation if they knew it was being done – e.g. Implementing functionality to a product/process  BVA (Business Value-Added - non-negotiable waste): an activity that is required to operate the business but the customer is unwilling to pay for – e.g. Budget tracking, code documentation  NVA (Non Value-Added): an activity that is not required by the business nor is the customer willing to pay for – e.g. Waiting for resource allocation, requirements documents 27 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. The Value Stream Suppliers Your Company Customer TOTAL VALUE STREAM The flow of activity required to turn raw materials into finished products Fit for purpose, for use by the end customer 28 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Implement Flow in the Value Stream  Standardize work Mistake proof processes  Achieve process control  Implement self inspection Cross train workforce Reduce set up times  Implement visual controls 29 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Value Stream Mapping  Value Stream Mapping is a pencil and paper tool that helps you to see and understand the flow of material and information as an order makes its way through your transactional process.  Value stream mapping is a way to evaluate the current transactional process, identify the value-added steps, and envision the improved (future) transactional process. 30 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. General Icons used in Value Stream Mapping Dedicated Process Box Customer or Supplier Mail Delivery Database (Excel, Access, etc) Queue Time Schedule Box Schedule Worker Shared Process Box 31 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. General Icons used in Value Stream Mapping Push Arrow Manual Information Flow Exceptions or Disruptions Electronic Information Flow F I F O Max. 5 pieces First In First Out Sequence Flow Kaizen Focus Physical Material Pull Non Value-Added Time Value-Added Time hrs/min hrs/min hrs/min 32 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Value Stream Mapping Example Customers Orders processed within 1 day Central Mail Sort Joe Sort orders To depts/5s Place in out Box/5s Sales Mail Sort Debbie Sort orders By customer Date stamp/ 2s Place for CSR/10s Initiate Order CSR 1 - Susan/Cathy Initiate Order /45s Per line Check Parts Numbers CSR 2 - John/Jane Check part# 10s per line Attach Revisions/ 10s Assign part# 15s per line Assign Delivery Date CSR 1 - Susan/Cathy Assign Delivery date/30s line File hard copy /90s Verify Order CSR 2 - John/Jane Review/15s per line Sales Mail Sort Debbie Sort/30s Central Mail Sort Joe Post order/30s 8 Hrs 4 Hrs 4 Hrs 2 Hrs 1 Hr 4 Hrs 4 Hrs 8 Hrs Schedule 8:00, 2:00 & 3:00 3 x Daily Mail Orders Order Acknowledgements 1 x Daily Phone Orders (Expedited) Faxed Orders .16 480 .28 240 11.25 240 120 60 240 240 480 23.75 9 3.75 5 5 NVA / VA Minutes Lead Time 33 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Background to this VSM example: A Lean Six Sigma team chose to focus on the Value Stream Map for orders for its customers. The main processes were determined and are as follows: Central mail sort – Joe; Sales mail sort – Debbie; Initiate Order – Customer sales rep 1 – Susan/Cathy; Check parts numbers – Customer sales rep 2 – Jane/John; Assign delivery date - Customer sales rep 1 – Susan/Cathy; Verify order - Customer sales rep 2 – Jane/John; Sales mail sort – Debbie; Central mail sort – Joe Copyright © 2016 Acuity Institute LLC. All rights reserved. Tips for Value Stream Mapping DO’s DON’T • Do begin at the end and work your way upstream • Don’t sit at the computer (Get up, walk around, and collect the required information) • Do map things as they are, and not the way they are supposed to be • Don’t try to map all of your process flows in one map (Its too confusing) • Do map the value stream yourself and refrain from using the committee approach • Don’t rely on standard times/information that you did not collect (Get a stopwatch and collect the data yourself) • Do use a customer focus approach • Don’t try to map all the parts (Just flow a few of the main raw materials) • Do walk the process, documenting as you go, and gathering information • Don’t‘ be hasty, take your time as this is a very important exercise 34 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Analysis Techniques – Error Proofing Implementing process checks may be necessary to ensure quality and timely input and outputs. Examples include:  Inspecting inputs from suppliers and not accepting defective inputs  Introducing required information on inputs  Implementing auto correcting techniques  Training employees on the process  Inspecting outputs to ensure quality and timeliness before the customer is affected I P O Inputs Process Outputs Error Proofing Checks *Additional information on Error Proofing will be covered in the Improve Phase 35 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Analysis Techniques – 5s Cleaning up the work environment will make it easier for employees to get to needed information.  Sort – Sort through the contents of a work area and remove unnecessary items.  Set – Set necessary items for easy and efficient access in demarcated areas.  Shine – Clean everything to ensure that your workplace and equipment are properly maintained.  Standardize – Create guidelines to keep the area organized, orderly and clean. You may also standardize the way you work by determining that work will flow using the FIFO principle (First-In, First- Out) – This means that first work in, is the first work to be processed (first out).  Sustain – Educate and communicate to ensure that 5S standards are followed. 36 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Analysis Techniques – Waste WASTE IS...  Any human activity which absorbs resource but creates NO VALUE – This is the direct translation of “Muda” the Japanese term for waste  Use of resources over and above what is actually required to produce the product/service as defined by the customer  If the customer does not need it or will not pay for it then it is waste 37 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Two Major Categories of Waste 1. Obvious Waste 2. Hidden Waste Obvious waste is easily recognizable  Examples: Undisciplined meetings, excessive paperwork systems, working ahead of schedule, and doing more than is actually required Hidden waste refers to work which is necessary under current methods of operation, but could be eliminated if improved methods were adopted  Examples: Poor office layout, excess overtime, excess labor We must always strive to minimize the amount of resources utilized to create products and services. Identification and Elimination of all types of waste is imperative to succeed. 38 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 8 Types Of Waste There are 8 basic categories of waste: MotionTransportation Over-Processing Waiting Over-ProductionDefects / Rework Inventory SkillsHey Tim Woods!! 39 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: “WHEN LOOKING FOR WASTE, BE LOOKING FOR “TIMWOODS” http://images.google.co.za/imgres?imgurl=http://digital-photography-school.com/blog/wp-content/uploads/2007/08/motion-blur-1 &imgrefurl=http://digital-photography-school.com/blog/how-to-capture-motion-blur-in-photography/&h=350&w=350&sz=103&hl=en&start=10&tbnid=3e6F_dkgCMqI-M:&tbnh=120&tbnw=120&prev=/images?q=motion&gbv=2&hl=en http://images.google.co.za/imgres?imgurl=http://digital-photography-school.com/blog/wp-content/uploads/2007/08/motion-blur-1 &imgrefurl=http://digital-photography-school.com/blog/how-to-capture-motion-blur-in-photography/&h=350&w=350&sz=103&hl=en&start=10&tbnid=3e6F_dkgCMqI-M:&tbnh=120&tbnw=120&prev=/images?q=motion&gbv=2&hl=en Copyright © 2016 Acuity Institute LLC. All rights reserved. 8 Types of Waste – Definitions TYPES OF WASTE DEFINITION TRANSPORTATION Back and forth work - handling documents more than once, unnecessary moving or handling of work between departments INVENTORY Any amount of work greater than single-piece flow. Excessive work in process (WIP), calls on hold, people waiting in line. MOTION Movement of people that adds no value (searching for paperwork, quotes, supplies etc) WAITING When work is sent from one department to another then waits for the next processing to occur (queues, time when no value is added to the product/service) OVER-PRODUCTION Producing more than the next operation can handle. OVER-PROCESSING Over-processing, unnecessary processing, or procedures (work carried out on the product/service which adds no value) often caused by bureaucracy DEFECTS / REWORK Ineffective work practices that result in poor data collection and poor data entry – result in data integrity issues; wrong customer details SKILLS Not listening to employees ideas or not asking them to use their brain and help solve problems 40 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: The idea of 8 wastes is useful because it allows a company to categorize problems and then focus attention in the appropriate areas once they have been identified. There are many tools and techniques in the Lean tool box which can be applied to many areas of service in order to tackle any one of these wastes. Reference: http://www.swmas.co.uk/Lean_Tools/The_7_Wastes.php http://images.google.co.za/imgres?imgurl=http://digital-photography-school.com/blog/wp-content/uploads/2007/08/motion-blur-1 &imgrefurl=http://digital-photography-school.com/blog/how-to-capture-motion-blur-in-photography/&h=350&w=350&sz=103&hl=en&start=10&tbnid=3e6F_dkgCMqI-M:&tbnh=120&tbnw=120&prev=/images?q=motion&gbv=2&hl=en http://images.google.co.za/imgres?imgurl=http://digital-photography-school.com/blog/wp-content/uploads/2007/08/motion-blur-1 &imgrefurl=http://digital-photography-school.com/blog/how-to-capture-motion-blur-in-photography/&h=350&w=350&sz=103&hl=en&start=10&tbnid=3e6F_dkgCMqI-M:&tbnh=120&tbnw=120&prev=/images?q=motion&gbv=2&hl=en Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section: Summary of Section  How to identify the process value stream  How to indentify opportunities to implement error proofing techniques  How to identify waste in your process 41 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlImproveDefine Analyze ControlMeasure ImproveDefine Measure ControlImproveDefine Analyze ControlMeasure Improve End of Lesson: Analyze – Lean Process Analysis Lean Six Sigma Training Lean Process Analysis 42 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlImproveDefine Analyze ControlMeasure ImproveDefine Measure ControlImproveDefine Analyze ControlMeasure Improve Analyzing Data Graphically Stratification Data Analysis Overview Analyze – Graphical Data Analysis Lean Six Sigma Training 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  To understand the drivers of variation in the process  To validate cause and effect relationships  To understand the root cause of differences between inputs, process, and outputs Stratification Graphical Analysis Hypothesis Testing Regression Experimentation Data Door 0 2 4 6 8 10 12 Data Door 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Chart1 2 5 6 7 10 8 6 3 2 Sheet1 2 5 6 7 10 8 6 3 2 Sheet1 Sheet2 Sheet3 Copyright © 2016 Acuity Institute LLC. All rights reserved. 0 2 4 6 8 10 12 0 2 4 6 8 10 12  The data door for Analyze functions more as a toolbox of tools and techniques than a step by step linear process. Depending on the problem that is being addressed and what the suspected causes are, the set of tools and the order of tools will vary according to the specific needs of each individual project.  Depending on the problem being addressed, some teams will pass through all doors and some teams may only go through 1 door to identify root causes. Graphical Data Analysis Statistical Data Analysis  Within the data door there are many different “doors” a team can pass through to analyze for root causes. Data Door 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Chart1 2 5 6 7 10 8 6 3 2 Sheet1 2 5 6 7 10 8 6 3 2 Sheet1 Sheet2 Sheet3 Chart1 2 5 6 7 10 8 6 3 2 Sheet1 2 5 6 7 10 8 6 3 2 Sheet1 Sheet2 Sheet3 Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlImproveDefine Analyze ControlMeasure ImproveDefine Measure ControlImproveDefine Analyze ControlMeasure Improve Analyzing Data Graphically Stratification Data Analysis Overview Analyze – Graphical Data Analysis Lean Six Sigma Training 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Know what stratification is and how it’s used in analysis  Understand the importance of stratification  Know common stratification factors By the end of this section, you will be able to: Overview – Objectives – Key Topics 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. DATA Process Subset 1 Subset 2 Subset 3  A data analysis technique by which data is sorted into various categories by specific factors  Divides data into several subgroups with common themes that may be the cause of observed variation  Enables suspicious patterns to surface  Unveils differences in processes  Allows for more accurate focus and prioritization of analysis efforts Stratification – What it is and What it’s Used for 6 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. -Region -City -Office site Where -Business Unit -Department -Individual Who -Year -Month -Week -Day When -Defect type -Problem type -Complaint type Type of Category ExampleFactor Common Stratification Factors 7 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Stratification is critical to getting down to the deeper root cause level. However stratification should be balanced with the time it takes to analyze each factor. It is recommended that a team narrows their list of stratification factors down to 3-4 key categories of possible causes of variation. The most efficient way to stratify data is to identify what stratification factors you want to analyze prior to collecting data in the measure phase. Otherwise it may be necessary to collect more data. Copyright © 2016 Acuity Institute LLC. All rights reserved. Example of “delivery time” data stratified by “day of week” Monday Tuesday Wednesday Thursday Friday D el iv er y Ti m e Since Tuesdays are consistently later than other days - the next step would be to look into Tuesday and analyze why Examples of Stratification 8 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Example of trend data on complaints broken out by product type Total Complaints Month Pr ob le m s 2000 2200 2400 2600 2800 3000 3200 1 2 113 4 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 24 Month Product B Complaints Pr ob le m s 300 500 700 900 1100 1300 1 2 113 4 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 Product A Complaints Pr ob le m s 300 500 700 900 1100 1300 1 2 113 4 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 Month Product C Complaints Month Pr ob le m s 300 500 700 900 1100 1300 1 2 113 4 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 24 Examples of Stratification 9 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  What stratification is and how it’s used in analysis  The importance of stratification  Common stratification factors Summary of Section 10 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlImproveDefine Analyze ControlMeasure ImproveDefine Measure ControlImproveDefine Analyze ControlMeasure Improve Analyzing Data Graphically Stratification Data Analysis Overview Analyze – Graphical Data Analysis Lean Six Sigma Training 11 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Know how, why and when to use pareto charts, stratified histograms, box plots, and scatter diagrams (correlation analysis).  Understand what type of data is required to use various analysis tools.  Learn how to interpret pareto charts, histograms, box plots, and scatter diagrams. By the end of this section, you will be able to: Overview – Objectives – Key Topics 12 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  You most likely identified many potential causes through your fishbone diagram and process value analysis  The potential cause is really a theory that two factors—a cause and an effect—are related  You need data to verify whether the cause-and-effect relationship truly exists  You can analyze historical data to test that theory, or collect new data  It’s possible the data you collected in the Measure phase can be analyzed in new ways to answer your questions about cause-effect relationships  Use other existing data only if you have confidence in its reliability and accuracy (presuming it is appropriate for your needs)  If historical or existing data will not answer the questions you are now trying to answer or if the existing data is unreliable, then you must collect new data Analyzing Data 13 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Remember we are trying to identify which X’s (input/process variables) have the greatest impact on the process Y (output).  There are a variety of graphical tools that can be used to examine the relationship between X’s and Y’s, the key is selecting the right tool.  Selecting the right tool depends on the type of data for both X and Y.  Some of the analysis tools have already been presented in the Measure phase, in this section we will summarize new tools that have not yet been fully presented. 9080706050403020100 60 50 40 30 20 10 0 Average Hold Time # of C al ls January Avg. Hold Time Distribution Plot Potential Root Potential Root CausesCauses Potential Root Potential Root CausesCauses Tools for Analyzing Data Graphically 14 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  A Pareto chart is a graphical tool that assists in segmenting a large problem into multiple components and identifying which components are the most important  Pareto charts rely on the Pareto Principle, postulated in the 19th century by Vilfredo Pareto, who found that 80 percent of Italy’s wealth was held by 20 percent of the Italian population.  This 80/20 Rule applied to Lean Six Sigma says that 80% of the process defects are caused by 20% of the problems. Pareto Chart A B C D 50 10 6 5 70.4 14.1 8.5 7.0 70.4 84.5 93.0 100.0 0 10 20 30 40 50 60 70 0 20 40 60 80 100 Defect Count Percent Cum % Pe rc en t C ou nt Defects  Pareto charts are one of the most widely used Lean Six Sigma tools 15 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  To analyze categorical or discrete data  Aids in understanding the pattern of occurrence for a problem  To identify the relative impact of various parts of a problem (quantifying the problem)  To identify the biggest contributors to a problem  Prioritizes where to focus analysis and improvement efforts  Helps prevent “shifting the problem” where the solution removes some causes, but worsens others Why Use a Pareto Chart 16 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. You can use a Pareto Chart when:  The problem under study can be broken down into categories  You want to identify the “vital few” categories—focus your improvement effort When to Use a Pareto Chart 17 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Understanding How to Read a Pareto Add res s Inac cura te Line I te m Tota l Am oun t Ove rcha rge Oth ers 0 50 100 0 20 40 60 80 100 Defect Pe rc en t Co un t Pareto Chart for Statement Accuracy Height of vertical axis represents all occurrences Bar height arranged in descending order with tallest bar on left, shows relative importance “Other” category is always last Cumulative count line Potential X’s 18 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Pareto Charts are used to graphically summarize and display the relative importance of the differences between groups of data. Further, it is used to identify and prioritize problems or causes of problems. What Questions Does The Pareto Chart Answer: - What are the largest issues facing our team or business? - What 20% of sources are causing 80% of the problems (80/20 Rule)? - Where should we focus our efforts to achieve the greatest improvements? Copyright © 2016 Acuity Institute LLC. All rights reserved. 1. Decide which problem you want to know more about 2. Choose the causes or problems that will be monitored, compared, and rank ordered 3. Choose the time period for study (pareto charts show variation for a period of time) Tip: Select a time period that is long enough to represent the situation, consider volume and variety within the data. 4. Gather the appropriate data (either historical or new) 5. Compare the relative frequency of each problem category (see example below) 6. List the problem categories (sorted by frequency, in descending order) on the horizontal line and frequencies on the vertical line 7. Draw the cumulative percentage line showing the portion of the total that each problem category represents Tip: Always include the source of data and time period covered on the chart. 8. Interpret the results (This tool can and should be done using statistical software) Problem Category Frequency Printing problems 15 Erroneous configuration 30 Filing problems 10 Network problems 6 How to Construct a Pareto Chart 19 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Indicates Pareto Principle holds true: one or a few categories account for the majority of the problem Focus analysis/improvement efforts on top one or two bars If the Pareto looks like this… Indicates Pareto Principle does not hold (bars are all close to equal in height) Look for other ways to categorize data or stratify data Interpretation: Response: Interpretation: Response: How to Interpret and Respond to a Pareto Chart 20 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Check the Pareto chart to evaluate whether the Pareto principle holds true. A few of the categories should account for the majority of the problem. Copyright © 2016 Acuity Institute LLC. All rights reserved. Data has been correctly distributed among categories, with the “other” category consisting only of issues that have a relatively low frequency of occurrence Continue with analysis efforts on top one or two bars If the Pareto looks like this… “Other” category has categories included in it that should be broken out into other separate categories Evaluate whether “other” items should be redistributed to existing categories or to newly created categories Interpretation: “Other” bar is relatively small “Other” bar is relatively tall Response: Interpretation: Response: How to Interpret and Respond to a Pareto Chart 21 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. If Pareto principle holds true, the largest bar on the pareto should be further broken into sub-causes to identify potential X’s. Defects A 0 5000 10000 15000 20000 25000 D ef ec ts Defect Type B C D E 0 2500 5000 7500 10000 12500 Am ou nt M on Day of Week For Defect A Tu es W ed Th ur s Fr iTeam focus for further analysis: defects on Monday Pareto Chart Drill Down 22 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 3020100 150 100 50 0 Location 1 Fr eq ue nc y Days CTQ = 15 Days Av erage = 12.29 Day s 5040302010 100 50 0 Location 3 Fr eq ue nc y CTQ = 15 Days Days Av erage = 30.02 Day s 3020100 100 50 0 Days Fr eq ue nc y Location 2 CTQ = 15 Days Av erage = 15.88 Day s Remember this? Going back to the histograms we learned in previous lessons….. In Analyze a Stratified Histogram enables you to compare distributions by providing one graph for each group, which aids in formulating potential causes. 0 10 20 30 40 50 0 100 200 Days Fr eq ue nc y 15 Days CTQ = Average = 19.39 Days N = 4266 Example of Stratified Histogram 23 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 0 10 20 30 40 50 0 100 200 Days Fr eq ue nc y 15 Days CTQ = Average = 19.39 Days N = 4266 3020100 150 100 50 0 Location 1 Fr eq ue nc y Days CTQ = 15 Days Av erage = 12.29 Day s 5040302010 100 50 0 Location 3 Fr eq ue nc y CTQ = 15 Days Days Av erage = 30.02 Day s 3020100 100 50 0 Days Fr eq ue nc y Location 2 CTQ = 15 Days Av erage = 15.88 Day s Sample Size Guideline: n > 50 for
each
group
Team’s Theory: The total variation in how long it takes to pay claims at all locations combined
is caused by variation in training and procedures at different locations.
What conclusions would the team have drawn from the results of the stratified histograms
below?
Example of Stratified Histogram
24
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When to Use:
 To analyze results when one variable has continuous data and another has
attribute or discrete data
Why use it:
 To compare distributions and measures of central tendency
 To look for patterns
How to create:
 Gather appropriate continuous data for each of the attribute types or
categories you want to investigate
 Create a histogram for each category (use the same numeric scale and plot
size for each individual histogram so you can easily compare distributions)
 Sample size for each group should be greater than 50 data points
Stratified Histograms
25
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 A box plot is a tool used to draw comparisons between different
distributions based on quartiles
 Box plots take key statistics from the data and summarize them in
a box format
Box plots of shift A and shift B
BA
1020
1010
1000
990
(means are indicated by solid circles)
*
Box Plots
26
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Why Use it:
 To compare several distributions against each other
 To identify variability and centering of two or more distributions
When To Use It:
 When you want to identify differences in distributions between
groups
 When you want to identify variability and centering in a variable
output (y) vs. an attribute input (x)
 An excellent tool to provide visibility to outliers
Box Plots – Why and When to use them
27
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 Box Plots measure variation (spread) by dividing data into four equal groups to see how far
apart the extreme groups are. It is based off of the Inter-quartile range (IQR).
 The IQR is the distance between the first quartile (Q1) and the third quartile (Q3). The IQR
= Q3 – Q1.
 A box plot indicates:
 Where the median of the dataset lies (represented by the middle line)
 A view of the size of each quartile of the data set
 Easy identification of data points that might be deemed extreme values or outliers (here an outlier is
defined as a point that is more than 1.5 IQR from an end of the box.)
 The dispersion or spread of the data (the whiskers)
Fourth Quartile
First Quartile
Second Quartile Third Quartile
Median
Outlier
Whisker

Mean
Understanding How to Read a Box Plot
28
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1. Gather appropriate continuous data for each of the attribute types you want
to investigate.
2. Draw a box between the first and third quartiles of data, this represents 50%
of the data values.
3. Draw horizontal lines from the middle of the sides of the box to the minimum
and maximum values. (These represent the whiskers).
4. Draw a vertical line inside the box to represent the median value.
5. Indicate any outliers with a dot or an asterisk.
6. Sample size for each subgroup should not have less than 25 data points.
7. Box plots can be constructed vertically or horizontally.
(Of course this can and should be done using statistical software)
How to Construct a Box Plot
29
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*
80
70
60
50
40
30
20
10
0
Phone Queue A Phone Queue B
Box Plot of Hold Time of Queue A and Queue B
H
ol
d
Ti
m
e
Stratified Box Plot Example
30
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Symmetrical
(based off of median)
If the median is close to the
center of the box, the
distribution of the data will
be symmetrical.
Negatively Skewed
(based off of median)
If the median is in the upper
half of the box, the
distribution of the data
values will be negatively
skewed.
Positively Skewed
(based off of median)
If the median is in the lower
half of the box, the
distribution of the data
values will be positively
skewed.
Symmetrical
(based off of whisker)
If the whiskers are
approximately the same
length, the distribution of the
data values will be
symmetrical.
Positively Skewed
(based off of whisker)
If the upper whisker is longer
than the lower whisker then
the distribution of the data
values will be positively
skewed.
Negatively Skewed
(based off of whisker)
If the lower whisker is longer
than the upper whisker then
the distribution of the data
values will be negatively
skewed.
How to Interpret a Box Plot
31
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 A Scatter Diagram assists in studying the relationship between 2 variables
Output
Variable
(Y)
Process Variable (X)
 A Scatter Diagram is a graph that helps you visualize the relationship
between two variables. It can be used to check whether one variable is
related to another
Scatter Diagram or Correlation Analysis
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One tool that can be used for identifying the relationship between input and process variables (X’s) and the process output (Y) is a scatter diagram.

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 Tests and verifies cause and effect
relationship between input/process
variable (X’s) and output variable (Ys)
 Analyzes the strength of relationship or
correlation between potential cause and
effect
 Provides indication of a root cause
Scatter Diagram – Why Use it?
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 To discover whether two variables are related
 To find out if changes in one variable are associated with changes in
the other
 To test for a cause and effect relationship (but finding a relationship
does not always imply causation)
Scatter Diagram – When to Use it
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Each data point
represents a pair of
measurements (ex. 10
defects for 5 min
process time)
Cause on the
X axis
High
# Defects
(Y)
Low
Low
Speed (X)
High
The pattern
Effect on
the Y axis
Both axis need
to be roughly
equal in length,
so the plot is
square
The pattern
indicates how
the variables are
related
Understanding How to Read a Scatter Diagram
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Both axes need to be about the same length so the plot is square. If you make one axis is longer or shorter than the other, the pattern formed by the scatter can be distorted.

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1. Gather appropriate data
2. Determine which variable will be on the horizontal axis (X) and
which will be on the vertical axis (Y)
3. Find the minimum and maximum value of X and Y
4. Set up the axes (ensure they are the same length)
5. Plot all the X & Y pairs on the graph (need 30 -100 pairs of data)
(This can and should be done using statistical software)
How to Construct a Scatter Diagram
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High
# Defects
(Y)
Low
Low
Speed (X)
High
Scatter Diagram Example
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In this scatter diagram, there appears to be a positive relationship between speed of the process and the number of process defects.

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Scatter Diagram Example: Printers Installed –
Printer Calls
Printer Calls
Pr
in
te
rs
In
st
al
le
d
420400380360340320
475
450
425
400
375
350
Scatterplot of Printers Installed vs Printer Calls
38
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This scatter diagram indicates that there appears to be a positive correlation between increased printer installation and printer calls to the Helpdesk.

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Common Mistakes Constructing Scatter Diagrams
 Mixing up the “X” and the “Y” variables
 Data is not paired correctly
 Improper scaling – scatter diagram not square
 Incorrect increment spacing between tick
marks
39
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Mixing Up The “X” And The “Y” Variables
In analyzing variables for potential cause and effect, the process variable as the predictor is on the “X” axis and the output or process performance variable as the response is on the “Y” axis.
Data Is Not Paired Correctly
Scatter Diagrams require that the “X” and “Y” variables be paired. It means that there has to be a logical correspondence between the data to appropriately study the correlation. For example, if one examines the relationship between length of time to approve loans and number of telephone calls to the applicant, the paired data would be based on a specific loan application. Taking a sample of loan applications, it will be necessary to know the length of the time to approve and the number of telephone calls for each loan.
Improper Scaling – Scatter Diagram Not Square
To ensure proper interpretation, it is necessary to use the fullest possible extent of both the “X” and “Y” axis to cover the range of the data collected. Improper scaling can result in the pattern being obscured.
Incorrect Increment Spacing Between Tick Marks
The increment, or the space width between tick marks on the Scatter Diagram, should be a value that makes it easy to plot the data and easy to read. A general guideline is to have between 5 to 15 increments of equal width along the full length of each axis.

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No Correlation
Possible Positive
Correlation
Strong Positive Correlation
Other PatternPossible Negative
Correlation
Strong Negative Correlation
Look For Patterns
Interpreting a Scatter Diagram
40
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In examining Scatter Diagrams, it is helpful to look for patterns. First, is there a pattern or correlation between the X and Y variables?
Second, the direction of the pattern, either positive or negative. For example, a strong positive correlation indicates an increase in the process variable (X) and increases the process performance (Y).�
Examples of positive correlation include:�- Hours worked and amount of production
– Age and height of school children
– Advertising costs and sales receipts
If a relationship is such that as one quantity increases the other quantity decreases, we call the relationship a negative correlation. ��Examples of negative correlation include:�- Time spent designing a piece of equipment and the time spent maintaining it
– Hours spent on training new employees and hours spent correcting errors
– Speed of a vehicle and time required to complete a trip

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 Common patterns in the data
 Range of the predictor variable (X’s)
 Irregularities in the data pattern (investigate
outliers)
Look for:
Interpretation of a Scatter Diagram
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Correlation Between Butterflies and Hurricanes
It is important to understand that correlation, no matter how strong, does not imply causation. As tempting as
it may be for us to leap to causation, we must understand that two variables may be strongly correlated with
no causal link whatsoever.
Just because the correlation between number of butterflies and number of hurricanes in a given year is
very strong does not mean that hurricanes are caused by butterflies flapping their wings.
50
80
70
60
50
80
70
60
100 200 300
H
ur
ric
an
es
Butterflies (Billions)
Be Careful – Correlation Does Not Imply Causation
42
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Summary of Data Tools
Tool Purpose
Box Plot Used to identify variability and centering of two or more groups
of data
Control Chart
(Measure Phase)
Used to help understand variation and to control and improve a
process
Histogram
(Measure Phase)
Used to determine shape, center and range of numeric data,
also used to prepare Pareto charts
Pareto Chart Used to identify and prioritize problems or causes of problems
Pie Chart Used to depict percentages of total in a circular diagram
Run Chart
(Measure Phase)
Type of chart used to display data related to a process variable
in sequence over time to identify changes
Scatter Diagram Used to confirm relationship between two variables
43
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What you learned during this section:
 How, why and when to use Pareto charts, stratified
histograms, box plots, and scatter diagrams (correlation
analysis).
 What type of data is required to use various analysis tools.
 How to Interpret pareto charts, histograms, box plots, and
scatter diagrams.
Summary of Section
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Define Measure ControlImproveDefine Analyze ControlMeasure ImproveDefine Measure ControlImproveDefine Analyze ControlMeasure Improve
End of Lesson: Analyze – Graphical Data Analysis
Lean Six Sigma Training
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Define Measure ControlImproveDefine Analyze ControlMeasure ImproveDefine Measure ControlImproveDefine Analyze ControlMeasure Improve
Hypothesis Testing Tools
Hypothesis Testing Overview
Statistical Data Analysis Overview
Analyze – Statistical Data Analysis
Lean Six Sigma Training
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 At this point, the vital few potential root causes have been identified.
Now we need to validate the root causes with 95% confidence in the
results. Statistical data enables us to do this.
 Allows us to draw meaningful conclusions from data samples
 So we can have a greater level of certainty in our identified vital few X’s
 Enables us to pinpoint the root cause so we can select the best fit
solutions to improve our process problems
 Helps to make the case for change with solid data to back up our plan
for change
Why do we Need to Use Statistical Data?
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Statistical Problem
Understand the process
• Only two issues can exist:
• Is the mean not centered properly
• Is the variability (spread) to large?
2
Practical Solution
• Once root causes are validated,
implement focused solutions
43 Statistical Solution
• Understand what drives the process
output
• Measure the influence of the vital few
X’s on the mean and the variability
1 Practical Problem
Problem Statement
• Magnitude
• Impact to business
Translate the Practical Problem into a Statistical Problem. Solve the
Statistical Problem and translate into practical terms and implement a
solution.
Statistical Thought Process
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 Just like graphical analysis tools, there are several statistical tools to help you
identify which X’s (input/process variables) affect the process output (Y).
 Again, in order to select the right tool to examine the relationship between X’s
and Y’s it depends on the type of data you are testing for both X and Y.
 The tools this course will cover are:
 Simple Linear &
Multiple Regression
5040302010 0
65
55
45
35
25
15
5
Cycle Time Sending Information
To
ta
l C
yc
le
T
im
e
Correlation Plot of Cycle Time
Statistical Analysis Tools
4
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Define Measure ControlImproveDefine Analyze ControlMeasure ImproveDefine Measure ControlImproveDefine Analyze ControlMeasure Improve
Hypothesis Testing Tools
Hypothesis Testing Overview
Statistical Data Analysis Overview
Analyze – Statistical Data Analysis
Lean Six Sigma Training
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 Understand what a hypothesis test is
 Know how to properly state a null and alternative
hypothesis
 Understand the significance of a p-value
 Know when to reject the null hypothesis
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
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 A hypothesis test is used to detect
differences between two or more groups
that may be important to the business
 Because of variation, no two things
will be exactly alike
The question is whether differences
you see between samples, groups,
processes, etc., are due to random,
common cause variation, or if there
is a real difference.
Hypothesis testing answers this
question for us.
Are A and B
really different?
Statistically
speaking?
10
20
30
40
A B
What is a Hypothesis Test?
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 To determine whether
making a change to an input
or process (X) significantly
changes the output (Y) of
the overall process.
 Statistically determine if
there are differences
between two or more
process outputs.
 Bottom Line: To determine
which process factors are
the cause of the variation in
our output that is causing
defects.
Y = f(X1, X2, X3…, Xn)
mmm….is it X1 or
X2 that’s causing
the problem?
Why Use a Hypothesis Test?
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 Hypothesis testing consists of a set of tools that can tell us how certain we can be
in the observations and formulated causes we made from our process analysis
and graphical analysis.
 There are different hypothesis testing methods to use for each situation
Type of Data
What You
Can Compare Example
Continuous
Proportions Is the % of on-time application completions
the same for group 1 as for group 2
Discrete
Averages
Variation
Shapes or
Distributions
Is the average productivity the same
for multiple regions?
Do results from the department using
the improved process have less
variation than the results from the
department using the old process?
How does the cycle time
distribution compare for various
processes?
Hypothesis Testing
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The goal of a Hypothesis test is to either reject or not reject
the Null Hypothesis.
The way it works:
 Test the null hypothesis
 H0: no difference between groups
 Against the alternative hypothesis (represents the
theory you are trying test or prove)
 Ha: groups are different
…to determine if we can reject the null hypothesis or not
Overview of Hypothesis
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There is a difference in the
waiting time across the
different regions
There is no difference in
the waiting time across the
different regions
Process waiting times
across different regions
There is a difference in the
variation of the dimension
from the different machines
There is no difference in
the variation of the
dimension from the
different machines
The variation in a product
dimension from different
machines
There is a difference in
customer satisfaction levels
between product A and
Product B
There is no difference in
customer satisfaction
levels between product A
and Product B
Customer satisfaction levels
for different products
There is a difference in
average wait times between
call centers
There is no difference in
average wait times
between call centers
Average call answer times
between call centers
The Alternative
Hypothesis
The Null HypothesisWhat you are looking at
Your aim is to disprove or reject the null hypothesis
Examples of Determining the Correct Null
Hypothesis
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Example: What is the p-value?
 The p-value is the probability that the observed difference between the
means is caused by sampling variation, OR
 The p-value is the probability that these two samples came from the
same population.
 P-values range from 0.0 to 1.0 (0% chance to 100% chance)
 By convention, usually treat P < 0.05 as indicative that the difference is significant. How do I Interpret the p-value? If p < 0.05, we declare a significant difference exists and therefore we should reject the null hypothesis. (In other terms, if P < 0.05, reject the H0 and conclude the Ha) When performing a Hypothesis test, an output of the test will be a calculated p- value. Identifying the p-value will tell us whether a significant difference exists. How do we Know When to Reject the Null Hypothesis? 12 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. P-values are probabilities for values of interest P-value =  Tail area  Area beyond value-of-interest Probability of being at the value-of-interest or beyond A small P-value (0 to 0.05) means:  The probability is small that the value-of-interest did, indeed, come from that distribution. . . . It is likely to have come from some other distribution A practical definition of the p-value is: The p-value is your confidence in the null hypothesis, so when it’s low you reject the null. Value of interest 0 0.05 p 1.0 Understanding P-values 13 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. “If p falls below, H0 must go.” Simple Method to Remember How to Interpret the Hypothesis 14 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Hypothesis Terminology:  So…..If the “null hypothesis” (H0) is that there is no difference between the two groups.  Then…..If we are able to reject the “null hypothesis” then we will be able to say that the two groups are statistically different with 95% confidence.  If p < 0.05, we declare a significant difference exists.  The p-value is the probability that the observed difference between the means is caused by sampling variation, OR  The p-value is the probability that these two samples came from the same population. Hypothesis Overview Summary 15 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  What a hypothesis test is  How to properly state a null and alternative hypothesis  The significance of a p-value  When it is appropriate to reject the null hypothesis Summary of Section 16 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlImproveDefine Analyze ControlMeasure ImproveDefine Measure ControlImproveDefine Analyze ControlMeasure Improve Hypothesis Testing Tools Hypothesis Testing Overview Statistical Data Analysis Overview Analyze – Statistical Data Analysis Lean Six Sigma Training 17 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Know how to perform linear regression analysis  Understand how to perform multiple regression By the end of this section, you will be able to: Overview – Objectives – Key Topics 18 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Note: This is not an exhaustive list and in this course we will only introduce Regression Analysis  Hypothesis testing consists of a set of tools that can tell us how certain we can be in the observations and formulated causes we made from our process analysis and graphical analysis.  There are different hypothesis testing methods to use for each situation Overview of Hypothesis Testing Tools Hypothesis Test Purpose Regression Identify if two variables are correlated t-test Compare two group averages ANOVA (Analysis Of Variance) Compare two or more group averages Chi-Square Compare two or more group proportions Design of Experiments (DOE) Identify the cause and effect relationships between Xs and a Y 19 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Hypothesis tests rely on the following assumptions:  Data is normally distributed (If continuous data).  When comparing groups from different populations, we assume samples are independent samples, were randomly selected, and representative of the population.  When comparing groups from different populations, we assume variances are not dramatically different.  When comparing groups from different processes, each process is stable (no special cause variation exists in the process.) CAUTION: Bear in mind that many processes are not stable, hypothesis testing should not be applied until the process is in control. For the purposes of learning and discussing hypothesis testing in this course, we will assume the above conditions have been met. Hypothesis Testing Assumptions 20 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Regression Takes correlation one step further by developing a mathematical model that represents the relationship between the X (input) and Y (output). Y X Correlation is used to determine the strength of a linear relationship between two continuous process variables. If two variables have a strong relationship, they are said to be correlated. R= +0.82 Y X Correlation and Regression Analysis – What is it? 21 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Correlation  To validate root causes by quantifying the magnitude of the relationship between variables.  This relationship of variables may be between: • A potential root cause (X) and the problem or output (Y). • Two potential causes, inputs, or factors (X1 and X2 ). Regression  To define the mathematical relationship between 2 or more variables so we can: • Make predictions of process performance, Y, based on a given value of the process variable, X. • Improve process performance (Y) based on controlling or manipulating process conditions (X) to generate desired results. Y X R= +0.82 Y X Correlation and Regression Analysis – Why use it? 22 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Correlation and regression are intended to be used in conjunction with one another.  Conducting regression analysis involves several steps and uses multiple tools. We can break down regression analysis into a 3 step process: Step 1: Graph the data Step 2: Measure strength of correlation Step 3: Run regression Y X Using a scatter diagram Y X By developing fitted line plot R= +0.82 By obtaining correlation coefficient The Process of Regression Analysis Overview 23 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. X Variable Is an input or process variable (sometimes called a predictor) which we are hoping to be able to manipulate to influence our project Y. If not, it can be used to predict Y Y Variable Is an output variable or a measure of process performance which we are hoping to positively affect by managing or manipulating X. If not, at least it can be predicted from X The scatter diagram indicates how a change in an input or process (X) can affect a change in output (Y) based on the strength of the relationship. Scatter Diagram – Identifying Possible Correlations Speed (X) # Defects (Y) Scatter Diagram 24 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  A correlation coefficient is used to measure the degree of linear association (correlation) between continuous sets of data.  The correlation coefficient is referred to as “r.”  The possible range of “r” is: +1 to -1  r = +1 Perfect positive relationship  r = 0 No linear relationship  r = -1 Perfect negative relationship (the higher the absolute value of r, the stronger the correlation)  The correlation coefficient (r):  Reflects the degree to which the data points are tightly clustered  Is sometimes referred to as the Pearson Coefficient Once scatter diagrams have been used to look for correlations, a correlation coefficient can be used to measure the strength of any correlations found. Correlation analysis places a quantifiable magnitude on the graphical scatter diagram relationship. Correlation Coefficient 25 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Examples of scatter diagrams and their associated correlation coefficients: Indicates a strong negative correlation, so the r value is very high. The r is a negative number to represent the downhill slope. Interpretation: the more call center reps available, the faster the speed of answer. Indicates a strong positive correlation, so the r value is very high. The r is a positive number to represent the upward slope. Interpretation: the more call center reps, the longer the talk time. No. of call center reps Sp ee d of a ns w er r = - 0.98 100 110 10 120 30 50 Indicates no correlation exists, so the r value is very low. Interpretation: there is no relationship between the number of call center reps, and the claims payment cycle time. No. of call center reps r = +0.06 Pa ym en t c yc le ti m e 120110100 30 Ta lk T im e No. of call center reps r = +0.96 120110100 10 50 Interpreting Correlation Coefficient 26 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Before you can use the correlation coefficient the statistical significance of the correlation coefficient should be assessed.  Because of the random nature of data, it is possible for a scatter diagram to suggest a correlation between variables when in reality, none exists.  There is a greater risk of this occurring if a scatter diagram is based on a small sample size  To solve for this issue, look at the correlation coefficient’s corresponding p-value  Just like hypothesis testing, a p-value is generated for a correlation coefficient using statistical software.  If the p-value < 0.05, you can be 95% confident that a correlation exists. r = - 0.98 p-value 0.000 y- ef fe ct r = - 0.98 Interpreting Correlation Coefficient 27 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Linear regression develops a mathematical model to represent the data in a scatter diagram  It defines the mathematical relationship between two variables  It generates a fitted line that quantifies the relationship between X and Y  Enables us to predict the value of Y given a certain value of X  The line or regression equation is represented as: y = b0 + b1 “multiplied by” x1, where y = output x1 = an input b1 = the slope of the line (rise over run, or change in Y per unit increase in X) b0 = the predicted value of y when x1 = 0 Linear Regression Analysis X1 Y Residuals Fitted Line 28 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Residuals are the difference between the fitted line (in the model) and the actual data point. Residuals can be analyzed to validate if the fitted line models the shape of the relationship intended. Copyright © 2016 Acuity Institute LLC. All rights reserved.  Regression analysis has its own measure for the strength of the relationship. This measure is the square of the correlation coefficient, and is simply referred to as “r-squared” (R-sq).  r-squared is the measure of how much variation in the process output is accounted for by the model. Another way to look at it is, it’s the measure of how well the regression line describes the data. (Therefore, the closer to 100% the better).  Since it is a squared value, it can range from 0 to positive 1.  It is defined as the proportion of the variability in Y (the output) that is explained by X (the input and/or process).  The regression process creates a line that best resembles the relationship between the process or input (X) and output (Y). Y X Linear Regression – How it Works 29 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. There are two values that are generated from regression analysis that serve as indicators for how to interpret regression results: P-value R-sq value Interpreting P-value: Null Hypothesis H0: slope = 0 (or no difference in Y when X changes) Alternative Hypothesis Ha: slope = 0 (or Y changes as X changes) Interpreting R-sq value: Represents how much of the variation in the process output is accounted for by the model so the closer to 100% the more confident we can be in our results. Linear Regression Interpretation 30 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Theory:  A Lean Six Sigma team wanted to see if the number of call center representatives had an affect on the speed of answer. Steps Used:  They took their data and first developed a scatter diagram and obtained their r- value.  Next, they ran regression analysis in a statistical software program to create the fitted line.  Finally they obtained, the R-sq value and the P value The results:  R-sq = 95.4%  P-value = 0.0 # of Call Center Representatives Sp ee d of A ns w er X1 Y Interpretation: The number of call center reps has a large affect on the speed of answer (95.4% of the variation in speed of answer is explained by the number of call center reps.) This is a critical X (since p < 0.05, we rejected H0, and determined Y changes as X changes) Linear Regression Interpretation Example 31 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 0.055 0.045 0.035 0.025 0.015 0.005 Speed of Answer Ab an do n R at e 10 20 30 The range of data ends here Do not attempt to make predictions beyond the range of your data! Regression Tips and Traps 32 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: As tempting as it might be to extrapolate beyond the range of data, don’t attempt to do this because it’s risky. Predictions using regression equations are more reliable for X’s that are within the range of the data set collected. Copyright © 2016 Acuity Institute LLC. All rights reserved. Y= f (X1, X2, X3, etc.)  Multiple regression is the same concept as linear regression, but it is an equation to show the mathematical relationship between several X’s and one Y.  Multiple regression is used to sift through many X’s (input and process variables) at the same time to find the most critical variables that affect the Y (the output variable). This enables us to select the best improvement solution. Multiple Regression equation: Y= b0 + b1 X1 + b2 X2 + b3 X3 + …etc. Where… Y = output variable XS = predictor variables (input or process variables) b0 = intercept (predicted value of Y when each X = 0) b1 = slope of the linear relationship between Y and X1, or the change in Y per unit increase in X1 holding all other XS constant b2 = slope for X2 b3 = slope for X3 etc…. Multiple Regression 33 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Scenario: A Lean Six Sigma team working in a call center focused on improving speed of answer wanted to see if the number of customer service calls and the number of inquiries on active accounts were correlated to the speed of answer. For this scenario predictor and response variables were: Y = Speed of Answer X1 = number of calls X2 = number of inquiries Speed of Answer (seconds) Number of Calls (per hour) Number of Inquiries (per hour) 21 503 45 24 654 52 30 709 22 16 598 16 Data Sheet: Multiple Regression Example 34 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Results: R-Sq = 94.3% P-value for number of calls = 0.0 P-value for number of inquiries = 0.785 Interpretation:  The R-sq value indicates that the input variables in the regression account for 94.3% of the variation in speed of answer, however…  Since the p-value of number of inquiries is greater than 0.05 it does not influence the speed of answer  Since the p-value for number of calls is less than 0.05, it does influence the speed of answer and therefore is a critical X. Conclusion: It must be the number of calls that is creating all the variation in speed of answer. The number of calls is causing the variation in the speed of answer Multiple Regression Example Continued 35 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Determine the type of test suited to your data and question  Arrange the data appropriately in the statistical software program of your choice.  Perform the statistical test  Obtain the p-value from statistical software output; declare a statistically significant difference if the p < 0.05 How to Perform a Hypothesis Test Summary 36 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  How to perform linear regression analysis  How to perform multiple regression Summary of Section 37 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlImproveDefine Analyze ControlMeasure ImproveDefine Measure ControlImproveDefine Analyze ControlMeasure Improve End of Lesson: Analyze – Statistical Data Analysis Lean Six Sigma Training 38 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlImproveDefine Analyze ControlMeasure ImproveDefine Measure ControlImproveDefine Analyze ControlMeasure Improve Analyze – Identify Root Causes Lean Six Sigma Training Identify Root Causes Validated Root Causes 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Validated Root Causes The Process of Identifying Root Causes Pareto Regression Stratification Process Value Analysis Fishbone 5 Whys Potential Root Causes Value Stream Map Root Cause Analysis Lean Process Analysis Graphical Data Analysis Statistical Data Analysis 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: The process of identifying root causes is similar to a funnel. It begins at a macro level with a multitude of possible root causes. Through root cause analysis, lean process analysis, graphical data analysis and statistical data analysis, the list of potential root causes gets narrowed down to the vital few process and input variables that affect CTQ process output performance. Copyright © 2016 Acuity Institute LLC. All rights reserved. Root Cause Analysis Graphical Data Analysis Statistical Data Analysis Potential causes identified (fishbone, 5 whys) Statistical tests conducted to validate differences in data groups Testing method utilized is appropriate for the data P-value determined Root causes identified to target for improvement Data graphically analyzed to identify the Xs that account for variation in the process Data sample is random and independent Data stratifications conducted to identify variation Analyze Completion Checklist Lean Process Analysis Process value analysis and Lean measures Value Stream Waste identification 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Identify potential root causes Statistical Data Analysis X1 Y Validate root causes through statistical tools Investigate potential root causes through graphical tools Graphical Data Analysis 10 20 30 40 A B Next Steps…… Move to Improve Phase to Identify Solutions Identify Root Cause Summary Root Cause Analysis & Lean Process Analysis Cause A Cause D Cause C Cause B Effect 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Once the Lean Six Sigma improvement team has analyzed which of the process variables (X’s) have the have the strongest relationship to the output measures (Y), they can confidently select the best solution. Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure ControlImproveDefine Analyze ControlMeasure ImproveDefine Measure ControlImproveDefine Analyze ControlMeasure Improve End of Lesson: Analyze – Identify Root Causes Lean Six Sigma Training Identify Root Causes Validated Root Causes 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Improve Phase Lean Six Sigma Training 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Improve Phase Overview Lean Six Sigma Training 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Once root causes are understood, the team can begin to develop solutions for the process. Generating both obvious and creative solutions requires innovation, technology, and discipline. Improve Phase Introduction 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. ANALYZE CONTROL IMPROVE MEASURE DEFINE  Generate Solutions  Prioritize and Document Improved Process  Document Solution Impacts and Cost/Benefits  Pilot Solutions and Identify Potential Problem Analysis  Develop Implementation Plan Best Practices Root Causes Project Goals “Discoveries” During Analysis Benchmark Ideas Ideas from Other Projects Brainstorming Performance Targets Generate Solution Ideas Generate Solution Ideas Implement Solution ID 1 2 3 4 5 6 7 8 9 Install new hardware Revalidate System Install new software Train Processing Staff Update documentation Develop Training Plan Train Staff Test Task Name 5/31 6/7 6/14 6/21 MAY JUNE 6/28 Jen, Kris, Sue Conroy Conroy Gwen Team, TBD Team, TBD Improve Phase Overview 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Identify and Select Solutions Financial Impact of Solutions Risk Planning and Testing Implement Solution  Benchmarking  Brainstorming  Solution Selection Matrix  Deployment Flowchart  Quantify Benefits  Quantify Costs  CBA Improve Tools  FMEA  Error Proofing  Pilot Planning MGPP  Change Management Strategy  Implementation Plan Improve Approach 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Improve Phase Deliverables Define Measure Analyze Improve Control Project Charter Project Management Project Plan Process Definition SIPOC As-Is Process Map Quick Win Identification Stakeholder Management Stakeholder Map Stakeholder Management Plan Communication Plan Voice of Customer Customer Identification VOC Research Plan Kano Analysis CTQ Identification  Root Cause Analysis Affinity Diagram Fishbone Diagram and/or 5 Why’s Lean Process Analysis Lean Tools and Measures Graphical Data Analysis Histogram Pareto Chart Box Plots Correlation Analysis Statistical Data Analysis Linear Regression Multiple Regression Root Causes Identified Quick Win Identification Identify Measures X/Y Matrix Data Collection Operational Definitions Measurement Systems Analysis (MSA) Data Collection Plan Describe and Display Data Histogram Pareto Chart Pie Chart Run Chart Control Charts Baseline Performance Sigma Performance Yield Process Capability Quick Win Identification Identify and Select Solutions Generate Solutions Benchmarking Solutions Prioritization Matrix Solution Selection Matrix To-Be Process Map Financial Impact of Solutions Cost/Benefit Analysis Risk Planning and Testing Failure Modes and Effects Analysis (FMEA) Pilot Plan Implement Solutions Multi-Generational Product Plan (MGPP) Implementation Plan Stakeholder Management Project Storyboard Process Control Control Charts Process Monitoring Plan Dashboard Response Plan Project Documentation Process Procedures Replication Opportunities Solution Transfer Plan 6 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. End of Lesson: Improve Phase Overview Lean Six Sigma Training 7 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze Improve ControlDefine Measure Analyze Improve ControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControlDefine Measure Analyze Improve Control Document/Design Solution Select Solutions Identify Potential Solutions Improve – Identify and Select Solutions Lean Sigma Training 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand how to conduct a gap analysis  Understand the difference between an incremental improvement strategy vs. an exponential improvement strategy  Understand various methods and techniques to generate solution ideas By the end of this section, you will be able to: Overview – Objectives – Key Topics 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. ANALYZE→ Identify the vital few root causes IMPROVE→ Generate solution ideas using both logical and creative thinking Look outside of the box for innovative solution ideas Obvious remedies to root causes of problem Project goals and targets Benchmarking + Review process and data analysis results Select “best fit” solution Filter ideas against criteria Process to Identify and Select Improvement Solutions 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Things to consider before generating solution ideas:  Assess gap between current performance and required performance  Determine if incremental or exponential process improvement is required to meet project goals Key Considerations to Generating & Developing Solutions 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. To comprehend the gap between current and desired performance, a Gap Analysis can be utilized to provide a structured approach to understanding this difference. After the root causes (critical Xs) have been identified, the project team can evaluate each root cause and assess what level of improvement the team needs for each critical X. The larger the gap, the more effort and risk associated with crossing it. An example of a gap analysis is below (some teams may only have one root cause): Gap Analysis Defines Delta Between Current & Desired Performance Root Cause Current Performance Desired Performance Gap Key Considerations to Generating & Developing Solutions 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Incremental Improvement Is the gap large? Customer Requirements Process Capability YesNo Design for Six Sigma (DFSS or DMADV) DMAIC Example: Modify the existing process Exponential Improvement Example: Completely re-design the existing process and/or build a new process Define Measure Analyze Improve Control Define Measure Analyze Design Verify Improvement Strategies 6 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Process entirely broken: the existing process is unable to meet many CTQs, too many successive DMAIC projects required  Technology development: new technology solution enables all customer requirements to be met at lower cost or gain a competitive advantage  Process has reached entitlement When to Utilize Design for Six Sigma Methodology 7 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Best Practices Root Causes Project Goals “Discoveries” During Analysis Benchmark Ideas Ideas from Other Projects Brainstorming Performance Targets Generate Solution Ideas Improve: Sources of Solution Ideas 8 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Generating solution ideas should be based on all of the analysis and conclusions the team has developed through the project. Copyright © 2016 Acuity Institute LLC. All rights reserved. These techniques allow a team to think outside of the box which can lead a team to build upon or discover a new idea which can lead to a better, more improved solution than the obvious or conventional solution.  Brainstorming  Benchmarking The following techniques enable creative thinking beyond the obvious solutions. Creative Solution Generation Techniques 9 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Traditional Brainstorming Review 1. Generation 2. Clarification 3. Evaluation Brainstorming  The Generation phase is a free open forum for all participants to generate solution ideas.  During the Clarification phase of brainstorming, the team reviews the list to make sure everyone understands all the items.  During the Evaluation phase of brainstorming, the team reviews the list to eliminate duplicates or combine like items. Stages of Brainstorming In preparation for brainstorming, the team should begin by reviewing the “as is” process, the gap analysis and the verified root causes. 10 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Rules for Brainstorming:  Clearly state the purpose of what you are brainstorming  Each person takes a turn, in sequence, around the group  Present one thought at a time  Do not criticize or discuss any idea  Build on ideas of others  Record ideas and make visible to the whole group (flipchart) Traditional Brainstorming Review 11 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. dopt- Other Companies’ Best Practices A dapt- Best Practices to our Business Processes A dvance- Our Business Performance A So We Can . . . What is Benchmarking? Benchmarking A Continuous, systematic approach to improving processes by identifying, evaluating and implementing World-Class processes, practices, products and services of highly successful organizations. 12 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Benchmarking is an improvement methodology that an organization can use to assist in identifying solutions. By identifying best practices in other organizations and companies and determining the reasons for success, an organization can integrate valuable knowledge into its processes, practices, products and services. Copyright © 2016 Acuity Institute LLC. All rights reserved. …And not reinvent the wheel?  Benchmarking  Benchmarking promotes the discovery of best practices and processes of successful external organizations or internal teams, units or segments.  The Benchmarking methodology focuses on adapting and building on these innovations to improve them even further.  Benchmarking is an excellent tool for identifying potential solutions during the improve phase. How do you Develop Innovative Solution Ideas for Breakthrough Change? 13 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  A continuous process  A process of investigation that provides valuable information  A process of learning from others; a pragmatic search for ideas  A time consuming, labor-intensive process requiring discipline  A viable tool that provides useful information for improving virtually any business process Benchmarking Is . . .  A one-time event  A process of investigation that provides simple answers  Copying; imitating  Quick and easy  A buzzword, a fad Benchmarking Isn’t . . . Benchmarking Defined 14 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Internal Benchmarking  Work processes are compared between departments, divisions or internal company segments  Competitive Benchmarking  Measuring process performance against peers or competitors  Functional/Industry Benchmarking  Comparing similar process performance of the same function at companies outside your industry  Generic Process/Best In Class Benchmarking  Internal processes are compared against truly innovative practices and world class performance levels, regardless of industry Types of Benchmarking 15 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Determining who to benchmark is a critical step. Research and analysis to decide which organizations have best in class processes have to be carefully conducted. This is particularly important when benchmarking a competitor. Collection of data is best performed by site visits to benchmarking partners. Telephone and written surveys are often satisfactory for preliminary screening or supplemental data. Site visits and surveys should be carefully planned to ensure good data is obtained. Copyright © 2016 Acuity Institute LLC. All rights reserved. Benchmarking Evaluation Example XXFunctional leaders XXGeneric processes XDirect competitors XXInternal operations Innovative PracticesData Collection EaseRelevanceBenchmarking Operation To determine which type of Benchmarking might be the best approach for your team to generate solution ideas, consider the relevance to your process, the level of effort required to collect the benchmarking information, and the level of creativity. Evaluation by Type of Benchmarking 16 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: To help determine who are the best benchmarking partners to focus efforts on, above is an example of a matrix of criteria used to flush out which type of benchmarking might provide the most best practice information with the least effort and time. Copyright © 2016 Acuity Institute LLC. All rights reserved. Thinking “out-of-the-box” produces the best results when selecting benchmark partners and analyzing their processes Company: Remington Rifle Co. Issue: Surveys revealed Remington’s customers’ prefer shiny rifle shells Benchmark Maybelline Cosmetics Partner: Results: Remington adopted Maybelline’s practice of making shiny tubes of lipstick to improve the shininess of their rifle shells Company: Southwest Airlines Issue: Southwest was interested in reducing aircraft maintenance and turnaround time Benchmark Indy 500 Pit Crews Partner: Results: Southwest adopted some of the crews’ ideas to develop an action plan and incorporate these Best Practices into it’s own organization Southwest Airlines Indy 500 Maybelline CosmeticsRemington Rifle Company Innovative Benchmarking Examples (Different Process and Industry) 17 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. To contribute to efficient, effective and ethical benchmarking, individuals agree for themselves and their organization to abide by the following principles:  Keep it legal  Be willing to give what you get  Respect confidentiality  Keep information internal  Use benchmarking contacts  Don’t refer without permission  Be prepared at initial contact Benchmarking Code of Conduct 18 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  How to conduct a gap analysis  The difference between an incremental improvement strategy vs. an exponential improvement strategy  Various methods and techniques to generate solution ideas Summary of Section 19 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze Improve ControlDefine Measure Analyze Improve ControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControlDefine Measure Analyze Improve Control Document/Design Solution Select Solutions Identify Potential Solutions Improve – Identify and Select Solutions Lean Six Sigma Training 20 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand how to organize solutions  Know how to use various methods and tools to prioritize solutions  Know how to use various methods and tools to select solutions  Understand how to select solutions in the event that no clear solution option emerges By the end of this section, you will be able to: Overview – Objectives – Key Topics 21 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. After solution ideas have been generated, duplicates need to be removed and they need to be organized into like categories. One of the best tools for categorizing the solutions is a familiar tool - the Affinity Diagram. Solution 1 Solution 2 Solution 3 Affinity Diagram Organize Solutions 22 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Develop the Evaluation Criteria  Remove Show Stoppers  Consider Organization Fit  Determine Sigma Impact  Evaluate Time Impact  Evaluate Cost Benefit Impact  Evaluate Other Impacts  Narrow the List Narrowing List Select Solutions Solution Evaluation and Selection Process Po te nt ia l S ol ut io ns 23 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Once solution ideas have been generated, the next step is to select the best solutions. Developing evaluation criteria helps identify those solutions that meet specific requirements. These requirements should be based on the needs of the customers and the organization. Eliminating ideas that do not meet certain criteria will save time and energy discussing unacceptable solutions. Criteria examples: - Show Stoppers contain minimum requirements that must be met for a solution to be considered. - Solutions may not fit into the current organization structure and should be eliminated or considered for later implementation. - Any solution selected should have a favorable impact to the process Sigma. Copyright © 2016 Acuity Institute LLC. All rights reserved. Payoff Matrix In this example, solution C and solution D would be eliminated from the list because of the relatively high level of effort and low benefit. Estimated Financial Benefit Implementation Level of Effort Solution A Solution B Solution C L H L Solution D H Narrow the List By Removing the Low Payoff Solutions 24 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: The Payoff Matrix is an effective tool used to narrow down the list of solutions by eliminating those solutions that are low “pay-offs” for the organization in terms of estimated cost benefit. Although we have not yet completed a detailed cost benefit analysis, at this stage of the project, the team should have enough information from quantifying the cost associated with the problem during the Define phase and a sense of the level of effort to be able to estimate the Level of Effort and Financial Benefit to use this tool. Copyright © 2016 Acuity Institute LLC. All rights reserved. A tool used to narrow and prioritize those solutions that have the greatest impact to key criteria. Example of criteria include: Root cause identified in the Analyze Phase that will be impacted by the solution The description of the solution that was generated from the brainstorming session Customer / CTQ Impact (H, M, L) The impact the solution will have on the CTQ, measured by High Impact, Medium Impact, or Low Impact The costs required to implement the solution suggested, measured by High, Medium, or Low The solution represents a quick win and can be implemented immediately Technology is required to implement the solution Root Cause Addressed Solution Description Implementation Cost (H,M,L) Quick Win (Yes, No) Technology Required (Yes, No) Solution Prioritization Matrix Solution Prioritization Matrix 25 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Choosing the right solutions can be challenging. The Solution Prioritization Matrix is another tool that will help drill down to a list of the best potential solutions. By comparing each idea against the criteria listed above, the project team can narrow down the list of solutions based on key requirements and not on gut feeling or popularity. Copyright © 2016 Acuity Institute LLC. All rights reserved. Criteria Develop 1 platform for systems to interact Increase approval levels of reps 4 2 1 Imp costs Quick-Win Tech. Rqd.CTQ Impact SUM 3Weight Standardize training materials/program Standardize & document resolution process 9 3 9 3 36 12 36 12 1 9 3 9 3 27 9 27 1 9 3 3 2 18 6 6 1 9 9 9 1 9 9 9 42 66 60 54 Weight (based on rank ordering Score against criteria 1(L), 3(M), 9(H) Score multiplied against weight To quantitatively select the final “best fit” solutions for your organization based on criteria, a Solution Selection Matrix can be used. See example and explanation below: Note: the implementation costs for this solution are high, but we give it a 1 instead of a 9 because increased cost is a negative. The sum of the multiplied scores Selected Solution Selected Solution Highest score solutions are selected Solution Selection Matrix Solution Selection Matrix 26 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Steps to Developing Solution Selection Matrix: 1. Record a list of final solutions 2. Create a list of criteria  This criteria should include the common criteria (root cause addressed, customer impact, implementation effort, etc. as seen on the previous page) as well as criteria that is specific and most important to the organization. 3. Weight the criteria  To identify the appropriate weighting of each criterion the individual criterion should be either rank ordered or weighted on a scale of 1-10. Criterion that are the most important are weighted a 10; lower weighted criterion are weighted a 2 or 1.  One method of determining the weight of each criterion is to have the team multi-vote . 4. Evaluate the list of solutions against the weighted criteria using a 1 for low, 3 for medium and 9 for high. 5. Tally the scores for each solution, discuss, and select those solutions that had the highest score. Developing a Solution Selection Matrix 27 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  On rare occasions, the choice may be obvious given your knowledge of the process and problem  More often, you need to carefully weigh pros and cons utilizing tools such as, the pay-off matrix, solution prioritization matrix, and solution selection matrix  If the solution selection matrix does not result in a clear choice—and perhaps even if it does—you can get more information about a solution by…  Modeling or simulating the solutions  Doing trial implementations (small scale tests)  Observation (find a person or organization who is doing something similar and observe) Selecting Solutions 28 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Since a solution selection decision is typically high impact, emotionally charged, and sometimes offers a wide diversity of opinion, consensus is generally the best decision making method to use when using a fall back solution selection method like decision making is required. Gathers upon every team members opinion Increased participation and buy-in Provides a structured process to arrive at decision Ensure you have allocated enough time Take thorough notes The Benefits of Using Consensus Tips to Using Consensus Decision Making Balance Power Listen carefully and check for understanding Decision Making Method – Consensus 29 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. To aid in the selection of solutions and aid in evaluating solutions against criteria, often more information must be gathered on each solution idea. Below are some effective and recommended methods:  Visit an organization that uses the particular solution option you are evaluating to see how effective it is.  Hopefully, you have already done this through benchmarking during the solution generation phase. If not, make a site visit to benchmark the solution at this stage.  Making a site visit to an organization who has a particular solution option can also provide valuable information about lessons learned through implementation and estimated costs to implement.  If evaluating potential solutions that involve a level of automation or technology:  Ask for a demonstration.  Compare different vendors (if applicable).  Visit an organization that uses this particular solution.  Prepare a list of questions. Obtaining More Information to Aid in Selecting Solutions 30 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Consensus  Delegate with Constraints  Gather Input from Others (influencers) and Decide  Gather Input from the Team and Decide  Decide and Announce High Level of Involvement/Time Required to Make a Decision Medium Level of Involvement/Time Required to Make a Decision Low Level of Involvement/Time Required to Make a Decision What to Do if No Clear Solution Option Emerges 31 If the criteria-based comparison tools, and methods to gather additional information on solutions as discussed on previous pages still does not result in a clear solution choice or if many solutions are equally scored, a fallback method is using decision making methods. See below…. This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  How to organize solutions  How to use various methods and tools to prioritize solutions  How to use various methods and tools to select solutions  How to select solutions in the event that no clear solution option emerges Summary of Section 32 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze Improve ControlDefine Measure Analyze Improve ControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControlDefine Measure Analyze Improve Control Document/Design Solution Select Solutions Identify Potential Solutions Improve – Identify and Select Solutions Lean Six Sigma Training 33 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand the importance of documenting the new process  Understand tools to document the new solution  Understand how to document the new process solution by creating a “to-be” process map By the end of this section, you will be able to: Overview – Objectives – Key Topics 34 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Documenting the newly selected solution is critical to understanding costs and risks, training associates, and achieving desired improvement results.  The tools for documenting the improved process solution design can include the following:  Process maps/flowcharts  Functional requirements document (for solutions that involve technology)  Drawings Documenting the New “To-Be” Process Solution 35 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Once the solution has been selected we need to go back to the baseline “as-is” process and identify and document how the process will change as a result of implementing the new solution.  The new “to-be” process map will also be a valuable tool for training the organization before implementation. S I P O C Suppliers Inputs Process Outputs Customers Process Map Documenting the New “To-Be” Process 36 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: It is helpful in documenting the new “to-be” process, to go back to the SIPOC first and identify what will change. In addition to the process steps, often suppliers and inputs will change as a result of the selected solution. Copyright © 2016 Acuity Institute LLC. All rights reserved. Deployment flowchart (“swim lanes”) Processing Administration Adjusters Payables Since both “who” conducts each process step and “how” work gets accomplished in a process changes after the improvement solution is applied, the best process mapping tool to document these changes is a Deployment flowchart. Deployment flowcharts clearly indicate both who handles each process step and how it gets done. Documenting the New “To-Be” Process 37 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Requirement documents for IT solutions can include items such as:  Business requirements  Data requirements  Functional requirements of product or service  Historic data specs  Production data specs  Functionality of product or service  User access/security If the solutions selected involves technology or automation, a detailed requirements and design document would also need to be developed with the support of an IT SME (information technology subject matter expert) that is assigned by the organization to be on the implementation team. Documenting Solution which Involves Technology 38 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  Understand the importance of documenting the new process solution  Understand tools to document the new solution  Understand how to document the new process solution by creating a “to-be” process map Summary of Section 39 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze Improve ControlDefine Measure Analyze Improve ControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControlDefine Measure Analyze Improve Control End of Lesson: Improve – Identify and Select Solutions Lean Six Sigma Training 40 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze Improve ControlDefine Measure Analyze Improve ControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControlDefine Measure Analyze Improve Control Cost/Benefit Analysis Costs of the “As-Is” Process Improve – Financial Impact of Solutions Lean Six Sigma Training 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand the costs of poor quality and defects  Understand how to quantify the costs and inefficiencies of the “As-Is” process By the end of this section, you will be able to: Overview – Objectives – Key Topics 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  For many companies, performance depends on meeting shareholder expectations. Given limited resources, an executive is unlikely to support quality for quality’s sake--- the business environment requires getting the most “bang for the buck” by increasing revenue and reducing cost.  The focus of Lean Six Sigma projects is to reduce defects and inefficiency to increase earnings and value for the shareholder. Overview of the Financial Side of Poor Quality and Defects generating gross revenue which minus costs results in profits some of which is reinvested the remainder reported as earnings thus meeting financial expectations Organizations produce products/services to the marketplace, thereby (which gets reduced by poor quality) (increased by inefficiency) 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. To identify the costs of the “As-Is” process, we need to identify the labor, material, and equipment costs to operate the process, plus the cost effect of the non value- added activities in the process. To do this assessment, go back to the process map analysis conducted earlier in the project where the percentage of value-added activity vs. non value-added activity was identified and calculate the cost of the non value-added activities. Method to Quantify the Cost of the “As-Is” Process Examples of Cost Categories Material Costs:  Postage  Paper  Ink  Forms Equipment Costs:  Computers  Phones  Office Furniture  Office Space Labor Costs:  Salary  Benefits 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Collect data on how many times the problem/defect occurs per unit of time (example: 12 occurrences/week)  Work with process owners and finance to collect data on the cost per occurrence in terms of labor, materials and equipment costs. (example, $200 per occurrence)  Identify time involved (example: 52 weeks)  Calculate total annual cost by multiplying the above three factors (example: 12 X $200 X52 = $124,800) Quantifying the Cost of the “As-Is” Process 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. The Cost of Conformance The money and time spent to ensure valid customer requirements are being met.  Includes money and time spent on both prevention (finding mistakes before they happen) and inspection (finding defects after they happen but before they touch the customer). The Cost of Lost Opportunity The profit impact of lost revenues that result from failure to meet customer requirements . If a company loses business because it has a reputation for poor quality, it loses revenue. The profit the company could have made on that revenue is the cost of lost opportunity. The Cost of Non-conformance The money spent to fix products and services that do not meet valid customer requirements. This cost includes money spent on warranties, credits, and other customer concessions paid as a result of poor product and service performance. These are considered external failures and are the worst type of cost because they touch the customer. Remember non-value added activities, such as, rework and defects cost money, this is considered the cost of poor quality. The cost of poor quality generally breaks down into three major categories: Considerations for Capturing the Costs of Non- Value Added Activities 6 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Once the team has collected data around the costs associated with the inefficiencies of the “As-Is” process, and has selected the solution to target these inefficiencies, the team now has enough information to perform a Cost/Benefit Analysis. Selected Solution“As Is” Costs Cost/Benefit Analysis Inputs to the Cost/Benefit Analysis 7 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  The costs of poor quality and defects (poor effectiveness)  How to quantify the costs and inefficiencies of the “As-Is” process (poor efficiency) Summary of Section 8 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze Improve ControlDefine Measure Analyze Improve ControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControlDefine Measure Analyze Improve Control Cost/Benefit Analysis Costs of the “As-Is” Process Improve – Financial Impact of Solutions Lean Six Sigma Training 9 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand the elements of capturing the financial impact of the selected solutions  Understand why performing a cost/benefit analysis on selected solutions is necessary  Know how to develop a cost/benefit analysis  Understand examples of various cost/benefit analysis formats  Understand key considerations and lessons learned around capturing financial benefits of improvement projects By the end of this section, you will be able to: Overview – Objectives – Key Topics 10 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  An analysis which quantifies the benefits of your project and compares them to the cost of pursuing the project.  A document which communicates in financial terms why the organization should implement your selected improvement solution(s).  A cost/benefit analysis includes calculations and financial measurements that fit your particular project and are important to the organization. These vary from project to project and might include measurements such as:  Return on investment  Return on equity  Return on capital  Cash flow  Net present value  Pay back period What is a Cost/Benefit Analysis? 11 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  It identifies the criteria against which we can measure the project success. Remember the key reason for conducting Lean Six Sigma improvement projects is to have a positive financial impact and increase value to the shareholder.  Before implementing the solution that has been selected we need to ensure that it meets the financial requirements of the business.  Allows us to determine if implementing improvement solutions will have clear financial payback.  The business case for implementing the selected solution might not be apparent to those stakeholders outside of the project team.  Data that indicates implementing the selected solution will result in a positive impact to the bottom line by creating buy-in and mobilize the organization’s commitment and support for the project. Why Perform a Cost/Benefit Analysis? 12 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Ties process defects to dollar impact  Translates “Quality Lingo” into common financial terms  Eliminates perception of Quality improvements as being “pie in the sky”  Enables Lean Six Sigma projects to compete effectively with other business initiatives for human and financial resources  Makes Lean Six Sigma project savings auditable  Increases credibility and support of Lean Six Sigma philosophy with business and finance leaders  Greatly enhances project success The Benefits of Quantifying Project Costs and Benefits 13 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Benefits generally fall into 2 categories:  Hard Benefits  Soft Benefits Cost categories:  Direct Project Costs  Indirect Project/Process Costs Benefits Costs When performing a cost/benefit analysis we are evaluating whether the benefits to be gained with the new improved process outweigh the costs of implementing the improvement solution, and to what degree. It is important to understand that every organization has its own guidelines and methodology to justify cost/benefit analysis. It is critical to work with the organization’s Quality/Financial Analyst to gain agreement and approval on the Cost/Benefit methodology used. Developing a Cost/Benefit Analysis Solutions Benefits and Implications 14 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Hard Benefits - Improvements that result in real and measurable cost or asset reductions.  Examples of Hard Benefits: – Incremental revenues – Cost reductions such as fewer headcount  Soft Benefits - Improvements that do not immediately reduce cost or assets but provide benefits through improved process efficiency, employee productivity, improved customer satisfaction, improved competitiveness, etc.  Examples of Soft Benefits: – Avoidance of lost sales – Cost avoidance such as the need to hire 5 instead of 10* *Note: in some organizations cost avoidance is considered a hard dollar benefit The Two Categories of Project Benefits ($$) 15 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Additional Examples of Hard Benefits (typically tracked by the company accounting system).  Reduction in unit cost of operations  Reduction in unit cost of production  Reduction in transaction cost  Reduction in overhead cost  Reduction in transportation cost  Reduction in manpower  Increased throughput, resulting in increased sales or revenue Additional Examples of Soft Benefits (less tangible, typically not tracked by accounting system).  Reduced cycle time  Improved on-time delivery  Increased flexibility  Faster response  Reduced effort  Increased availability  Fewer defects  Higher scores on customer satisfaction scores Additional Examples of Project Benefits ($$) 16 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Direct Project Costs – Costs that can be tied directly to a particular process or project. These include incremental costs (costs which are only being incurred as a result of deciding to implement the selected Improvement solution). Incremental costs are the costs above the current cost to operate the process.  Example of Incremental Costs: ̶ If recommended improvement solution was to implement a new computer system to improve the processing of loans, the purchase cost of the computer would be an incremental cost of the project.  Indirect Project/Process Costs – Costs associated with running the enterprise or organization (often called facilities and administrative costs.)  Examples of Indirect Costs: ̶ Utilities and rent ̶ Cost of Quality resources working on the project prior to implementation of solution. Note: in most organizations only incremental costs should be considered in the cost/benefit analysis. Implementation Costs ($$) 17 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Gross Hard Project Benefits + Gross Soft Project Benefits Less: Project Implementation Costs = Net Project Benefits Net Project Benefits Method to Calculate Estimated Project Benefits ($$) 18 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Hard benefits…such as:  Incremental Revenues…less Cost of Goods Sold (COGS)  Cost Reductions Soft benefits…such as:  Avoidance of lost sales…less COGS  Cost avoidance Implementation costs include...  Full-time resources assigned to the implementation  Consultants, contractors and temps  Other considerations for running the project Implementation costs exclude…  Costs of Quality resources assigned to the project prior to implementation Gross Project Benefits Gross Hard Project Benefits + Gross Soft Project Benefits Less: Project Implementation Costs Net Project Benefits Project Implementation Costs Method to Calculate Estimated Project Benefits ($$) 19 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Time Fi na nc ia l & p ro ce ss p er fo rm an ce Before improvement Minimize this effect After improvement In the initial stages of the solution being implemented, there is often a period of time when process participants are adjusting to the new process which causes a degradation to both the process and financial performance. After the adjustment period, performance will gradually improve to the new desired level. Implementing the solution quickly and minimizing this adjustment period will result in realizing improved process performance and therefore improved financial benefits faster. Key Considerations 20 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Start with the “As-Is” process analyzed earlier in the life of the project  Use the data generated in the previous project phases to illustrate the difference between the “as-is” state and your solution.  Cost out the various “Should-Be” alternatives  Use the process map and personnel in associated departments to identify cost and benefit information.  “As-Is” minus “Should-Be” represents the cost savings associated with the proposed solution  Determine cost of implementing the proposed solution  Concentrate on direct costs and direct benefits. Use indirect costs that are generally acceptable to all stakeholders  Use standard methods and rates in your calculations  Document your assumptions How to Perform a Cost/Benefit Analysis 21 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Project Name: Improve credit card billing process Problem Statement: The credit card billing process is inaccurate resulting in incorrect bills being sent to card holders. Proposed Solution: Improve credit card billing process by implementing new software. Implementation Costs: Measurement Variable Cost Estimate Total Notes Software 1 site license $50,000 $50,000 Training 2 contractors @ 40hrs each/week for 1 week $50/hr/each $4,000 Implementation team personnel time 4 people @10 hrs./wk. for 5 weeks $50/hr. $10,000 Hard Benefits: Measurement Variable Cost Estimate Total Notes Reduce billing inquiries 1 staff eliminated @ $9.50/hr. $20,000/yr. $20,000 Hard Benefits: Cardholder receives more accurate and understandable statement 5 day reduction in receivables days outstanding per quarter Avg. receivables balance = $1.5M @15% cost of capital $123,000 Time value of money indicates because of interest costs, a dollar received today is worth more than a dollar in the future so collecting receivables sooner is a benefit Net Benefit (equals total benefits, less costs): $79,000 Example of Cost/Benefit Analysis *A cost/benefit analysis can be done in many different formats. If a standardized cost/benefit analysis template does not exist within your organization, then propose one to the organization. 22 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Company: Auto Insurance provider Problem: Extended claims payment cycle time due to manual claims payment process with multiple handoffs. Process Solution: Implement an automated workflow system with built in automated payment system to reduce process cycle time to pay auto claims. Cost/Benefit Summary: Implementation Costs: $58,000 Hard Benefits: Head Count Reductions $398,261 Overtime Elimination $56,799 Reduction in check writing costs $69,176 Soft Benefits: Productivity Increases $121,750 Total Project Benefit: $645,986 Net Benefit: (Benefits less costs) $587,986 See back up data on following pages Example of Cost/Benefit Analysis with Back Up Data Detail 23 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: In this example, an auto insurance provider’s auto repair claims payment process was incapable of meeting its cycle time CTQ of paying claims within 7 days. The “as-is” process was completely manual and they paid the majority of their claims via checks. Due to the manual nature of the process, it required a lot of labor to complete the process effectively. To improve the process, the improvement team recommended implementing an automated workflow system with a built in automated payment process. This solution enabled the auto insurance provider to reduce the staff required to process claims manually, expand their payment capabilities, reduce check writing costs, and improve cycle time. Copyright © 2016 Acuity Institute LLC. All rights reserved. Automated Workflow System with Build in the payment system: $58,000Total Costs: $3,000 User Training on new system (10 @ $300 each) Training: $50,000Software program (1 site license @ $50,000) $5,000Hardware (10 computers @ $500 each) Implementation Costs: Example of Cost/Benefit Analysis with Back Up Data Detail 24 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. The back up data to the CBA shows the comparison of the “As-Is” process to the new “To-Be” process Old Process Department Makeup: Count Job Title Gross Annual Pay* (avg. annual pay for 1 x total count) 1 Supervisor $33,141 (1 @ $33,141) 3 Fax People $55,029 (3 @ $18,343) 3 Filers $63,426 (3 @ $21,142) 5 Mail Openers $91,615 (5 @ $18,323) 3 Researchers $67,476 (3 @ $22,492) Total= $310,687 New Process Department Makeup: Clerical: Clerical: Count Job Title Gross Annual Pay* 1 Manager $37,343 (1 @ $37,343) 9 Payment Reps $225,000 (9 @ $25,000) 3 Exceptions $66,669 (3 @ $22,223) Total= $329,012 Count Job Title Gross Annual Pay* 1 Manager $37,343 (1 @ $37,343) 4 Payment Reps $100,000 (4 @ $25,000) 0 Exceptions $0 2 Master Card Reps $49,066 (2 @ $24,533) Total= $186,409 Accounts Payable: Accounts Payable: Expected Annual Savings from headcount reduction: Old process $639,699 New Process $241,438 Total head count savings = $398,261 Count Job Title Gross Annual Pay* (avg. annual pay for 1 x total count) 0 Supervisor $0 3 Fax People $55,029 (3 @ $18,343) 0 Filers $0 0 Mail Openers $0 0 Researchers $0 Total= $55,029 *Reflects salary with benefits, exclusive of overtime Example of Cost/Benefit Analysis with Back Up Data Detail 25 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Savings From Elimination of Overtime: Overtime paid from week 9-43 4,863 Avg. hourly pay, non exempt employees* $ 11.68 Total Over time elimination savings $ 56,799 *fully loaded labor rate based on average of the time periods studied FINANCIAL WEEK HEAD COUNT TOTAL HOURS TOTAL OT HOURS Loaded Labor Rate 9 62 5,336.00 721.28 11.25 PRIOR TO 11 68 6,904.57 796.28 11.31 IMPROVE- 13 67 5,990.67 667.80 11.45 MENT 15 67 5,956.65 641.63 11.19 17 62 5,169.00 114.02 11.42 19 63 5,074.25 2.25 11.24 21 61 4,768.00 - 12.01 I 23 60 4,879.27 115.95 11.23 M 25 59 4,688.00 - 11.42 P 27 58 4,625.25 17.25 12.26 R 29 57 4,541.70 16.50 12.24 O 31 58 4,705.87 97.88 11.34 V 33 56 4,487.75 39.75 12.26 E 35 56 4,403.45 54.75 12.11 M 37 56 4,652.43 369.38 12.61 E 39 55 4,918.54 631.95 11.44 N 41 55 4,918.02 563.33 12.23 T 43 55 4,381.12 13.13 11.23 90, 400.54 4,863.13 Example of Cost/Benefit Analysis with Back Up Data Detail 26 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Elimination of Check Writing Costs: Old Process: New Process: Check printing and postage costs $120,000 $50,824 Check processing volume (percent of total volume) 85% 36% Check Printing and Postage Cost Check printing and postage after improvement $120,000 $ 50,824 Total Cost Savings from reduction in check writing as a result of automation: $69,176 Productivity Increases: Old Process: New process: Avg. number of transactions per payment rep./day (based on time studies) 31.8 49.0 Expected annual savings from productivity increases: Productivity Improvement as a result of new process = (49.0 -31.8)/31.8 54% Required additional payment reps, old process, to achieve new process productivity level (% change * 9 people) = 4.87 additional people Avg. annual salary, net of overtime 4.87 $25,000 Productivity Increase Savings: $121,750 Example of Cost/Benefit Analysis with Back Up Data Detail 27 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. When analyzing the costs it is important to distinguish between the design/implementation and the operational impacts  Cost associated with design and implementation  Training Cost  System Cost  Design and Development Cost  Cost of Change  Costs associated with operational impacts  Resource Consumption  Rework Cost  Cost of Capital  Maintenance Cost Considerations for Analyzing Costs 28 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Six Sigma focuses on tying process improvement to the company bottom line. The Finance function is responsible for reporting this bottom line---the effectiveness of any Lean Six Sigma implementation is therefore dependent on building credibility with Finance. This can be accomplished through either a separate Finance tollgate or a Finance representative being present at the regularly scheduled tollgates at the end of each phase. AnalyzeDefine Measure Improve Control PHASE TOLLGATE PHASE TOLLGATE PHASE TOLLGATE PHASE TOLLGATE PHASE TOLLGATE FINANCE TOLLGATE FINANCE TOLLGATE Phase Tollgates are reviews with Lean Six Sigma Mentors and Sponsors after every phase to ensure that all phase deliverables have been met and sufficient rigor maintained to move on to the next phase. Finance Tollgates occur during or after Improve (when one knows enough about the process to develop a cost/benefit analysis) and Control phases (when project savings are to be booked). The Importance of Finance Review at Tollgates 29 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. A lot can change during the course of a Lean Six Sigma project: key business assumptions, strategy, execution, processes, etc. This change can have dramatic impact upon a project’s cost/benefit analysis model. As a result, most companies set up periodic audits of Lean Six Sigma projects after implementation to review and update cost models and savings. Auditing and Updating Cost/Benefit Analysis PROJECT COMPLETE SAVINGS START PROJECT AUDIT COST MODEL OK? UPDATE MODEL UPDATE SAVINGS END START Y N 30 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. When presenting CBA, consider focusing on the following:  Keep it simple  Focus on the summary benefits and costs; have back up data and be prepared to go into detail if necessary, but be careful not to go “into the weeds” in terms of detail  Discuss benefits, be clear on what are soft vs. hard benefits  Speak frankly about the costs  Speak the language of the business: use standard methods and techniques  Ask for input  Confirm go/no go decision Gaining Approval on Cost/Benefit Analysis 31 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  The elements of capturing the financial impact of selected solutions  Why performing a cost/benefit analysis on selected solutions is necessary  How to develop a cost/benefit analysis  Examples of various cost/benefit analysis formats  Key considerations and lessons learned around capturing financial benefits of improvement projects Summary of Section 32 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze Improve ControlDefine Measure Analyze Improve ControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControlDefine Measure Analyze Improve Control End of Lesson: Improve – Financial Impact of Solutions Lean Six Sigma Training 33 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze Improve ControlDefine Measure Analyze Improve ControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControlDefine Measure Analyze Improve Control Test Solution Plan for Risks Improve – Risk Planning and Testing Lean Six Sigma Training 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand the importance of assessing and managing risks  Learn how to conduct a Failure Mode and Effects Analysis (FMEA)  Understand the concept of Errorproofing By the end of this section, you will be able to: Overview – Objectives – Key Topics 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Every process change carries risk. Unintended consequences can strike even the best-planned implementation. While we cannot eliminate risk, we can certainly mitigate it.  In the following pages, we will examine some tools that allow us to anticipate potential problems with the new “to-be” process and therefore reduce the risks. RED YELLOW GREEN Minimal risk to implementation Moderate risk to implementation Severe risk to implementation Risk Assessment and Mitigation 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Common tools for risk assessment and mitigation:  Failure Mode and Effects Analysis (FMEA)  Errorproofing Risk Assessment and Management Tools 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Is a structured approach to evaluating and prioritizing risks in a process and/or product  Can be used to identify and mitigate risks prior to making changes to a process and/or product  Can be used to prevent failures in a process and/or product Failure Mode and Effects Analysis (FMEA) 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  To identify specific parts of the product or process that need improvement  To improve the quality, reliability, and safety of products and services  To increase customer satisfaction  To document and track actions taken to reduce risk Why Use an FMEA 6 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 1. Review the product, service or process (use process map) 2. Brainstorm to identify potential failure modes. These are ways in which the product, service, or process might fail (ask the question, if the failure occurs, what are the consequences?) 3. Identify 1 or more potential effects of each failure (consequences of that failure) and rate its severity 4. Identify causes of the potential failures and rate their likelihood of occurrence (frequency) 5. Rate your ability to detect each failure mode 6. Multiply the three numbers (severity, occurrence, detection) together to determine the risk of each failure mode (RPN = Risk Priority Number) 7. Identify ways to reduce or eliminate risk associated with high RPNs How to Conduct an FMEA 7 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. FMEA Worksheet FMEA 8 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Severity = likely impact of the failure Rating Criteria: A failure could… 10 Customer leaves you because of poor customer service 5 Poor customer service likely to result in a complaint from the customer 1 Be unnoticed and not affect customer service Bad Good Sample Severity Rating Scale 9 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: This scale is just one example; you can develop your own scale customized to your specific product, service, or process. For example, you can have more rating levels, and use other criteria. Copyright © 2016 Acuity Institute LLC. All rights reserved. Occurrence = frequency of occurrence Rating Time Period Sample Occurrence Rating Scale 10 Once an hour 5 Once a week 1 Once a quarter Bad Good 10 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: This scale is just one example; you can develop your own scale customized to your specific product, service, or process. For example, you can have more rating levels, and use other criteria. Copyright © 2016 Acuity Institute LLC. All rights reserved. Detection = how easily the failure can be detected Rating Definition Defect caused by failure is not detectable Process is monitored and manually inspected Defect is obvious and can be kept from affecting customer Sample Detection Rating Scale 10 5 1 Bad Good 11 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: This scale is just one example; you can develop your own scale customized to your specific product, service, or process. For example, you can have more rating levels, and use other criteria. Copyright © 2016 Acuity Institute LLC. All rights reserved. RPN = (severity) x (frequency of occurrence) x (likelihood of detection)  The idea is to focus action/improvement efforts on the failures that have the biggest impact on customers. The highest scoring failure modes are those that happen a lot, that are bad when they happen, and/or that are unlikely to be detected. Difficult-to-detect errors obviously are more likely to get through to customers.  The RPN number identifies those items or process steps in the new “to-be” process that pose the greatest risk. Anticipating these risks ahead of time will allow the team to put countermeasures in place to mitigate the risks associated with the new process, thereby increasing the chances of success. Calculating the Risk Priority Number (RPN) 12 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: This scale is just one example; you can develop your own scale customized to your specific product, service, or process. For example, you can have more or fewer rating levels, and use other criteria. Copyright © 2016 Acuity Institute LLC. All rights reserved. Item or Process Step Potential Failure Mode Potential Effect(s) of Failure S E V E R I T Y Potential Cause(s) O C C U R R E N C E Current Controls D E T E C T I O N R P N Recommended Action Responsible Computers Viruses Loss of data, corrupted files, network invasion 4 Virus software isn’t up to date or gets disabled 8 Virus protection software 2 64 Ensure that virus protection software is up to date Susan K. Files not backed up Data loss, rework 4 Staff forgets, low priority 6 None 9 216 Keep files on LAN, notify IT of remote files for automatic backup Sam T. Stolen Lost data, rework 8 Not locked up at night 7 None 10 560 IT Security awareness training and communication Bob J. Example of FMEA – IT Security 13 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Focus taking action on those process steps which have the highest RPN. Copyright © 2016 Acuity Institute LLC. All rights reserved.  Before you use the standard scales, make sure they are in line with your process or product  Make the tool work for you and your particular process  The scales for severity, occurrence, and detection can be adjusted if necessary  If standard scales don’t apply, brainstorm the appropriate FMEA scales that best fit your particular process Adjusting FMEA Scales 14 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. No matter how good people’s intentions are, if a process allows for the generation of defects, the process will generate defects. A common tendency to eliminate errors is to add inspection steps. Inspection does not prevent errors, it just detects them. Inspection requires time and resources and is not an efficient method to reduce errors. Another technique to combat this propensity toward defect generation is Errorproofing. Errorproofing is an alternative to inspection. Error-proofing a process is a technique to help prevent errors and increase the chances of detection so that failure mode occurrences are eliminated. Similar to FMEA, teams can use this tool to identify many possible actions to prevent errors or mitigate their effects. Errorproofing 15 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What is considered an error?  Errors are inadvertent, unintentional, accidental mistakes made by people because of the human sensitivity designed into processes.  Errors result in those once in a while defects that we always find difficult to control. Errorproofing 16 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. It’s Origins: Errorproofing (also known as Poka-Yoke technique) was developed to mistake-proof processes. Poka-Yoke translates into English as to avoid (yokeru) inadvertent errors (poka). The result is a business that wastes less energy, time and resources doing things wrong in the future. How it works: Errorproofing involves physical process modifications to eliminate the opportunity for defects. Errorproofing measures or techniques should be an integral part of the process. The technique or device to eliminate or reduce the error is placed sufficiently close to where mistakes occur, providing fast feedback to the process operator of mistakes occurring. The selected errorproofing technique should qualify the following criteria:  Inexpensive.  Based upon common sense, preferably of the operator or the 1st line employee.  It MUST eliminate or reduce occurrence and/or provide detection of the problem at the source itself. Errorproofing 17 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Eliminates errors in counting out change owed back to the customer Cash register is programmed to calculate correct change Eliminates safety hazardChild locks on car doors Error reduced or prevented as a result of errorproofing Errorproofing Technique Examples of Errorproofing 18 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. This prevents the processing department from reviewing an incomplete document, sending it back to the loan department, delaying the processing of paperwork The online banking form requires all fields to be filled in for a loan (including the loaner signature) before allowing the form to be sent to processing Reduces spelling errorsSpell check function and auto correct function in a word processor Error reduced or prevented as a result of errorproofing Errorproofing Technique Examples of Errorproofing 19 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Prevents surgery from being conducted on the wrong limb or side of the body Before surgery patient’s incision site is marked with a marker Reduces plane collisionsCollision avoidance radar in planes Error reduced or prevented as a result of errorproofing Errorproofing Technique Examples of Errorproofing 20 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  Understand the importance of assessing and managing risks  Learn how to conduct a Failure Mode and Effects Analysis (FMEA)  Understand the concept of errorproofing Summary of Section 21 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze Improve ControlDefine Measure Analyze Improve ControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControlDefine Measure Analyze Improve Control Test Solution Plan for Risks Improve – Risk Planning and Testing Lean Six Sigma Training 22 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand the importance of testing the new solution  Learn what a pilot is and the benefits of conducting one  Learn the elements of an effective pilot plan and the key considerations for making the pilot successful  Learn how to evaluate and confirm pilot results By the end of this section, you will be able to: Overview – Objectives – Key Topics 23 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Before we can implement our solution, we need to test our solution to confirm the expected impact on our process performance. The Shewhart Cycle of Plan- Do-Check-Act (PDCA) applies to this effort: PLAN DO CHECKACT Develop a plan of how we will test the solution Conduct a pilot test Check the plan and the results Compare estimated improved process performance (Y) to goals for project Revise action plan if improved process performance (Y) would not be sufficient  Implement action plan if improved Y is sufficient Testing Our Solution 24 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Definition of a Pilot: A test of all or part of a proposed solution on a small scale in order to better understand its effects and to learn about how to make the full scale implementation more effective and successful. It is important to test your solution to identify any problems and manage risks prior to implementing the solution across the organization. One method we use to test our solution is a Pilot. Testing Your Solution 25 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Make further improvements to the solution  Gain additional understanding of the risks  Identify opportunities to reduce risks  Validate assumptions  Validate solution cost/benefit  Practice run prior to full implementation  Facilitate stakeholder buy-in Reasons to Pilot 26 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  The scope of the implementation is large  The scope of the implementation is complex  Confirmation of the desired results is required  Validation of the selected solutions is required  Additional stakeholder commitment is needed When to Pilot 27 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Test product/process:  With a specific market or customer segment  Within a particular business unit or location  With a single row of employees or shift (morning shift employees, afternoon shift employees, etc.)  With a focus group  When processing a subset of items Pilot Strategy 28 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Defined Roles/Responsibilities Pilot steering committee/team (select those who will be supportive) Pilot participants Liaison between pilot area and core pilot team Workplan Have a detailed project plan Identify tasks and owners Identify dates of completion Pilot plan outline Communication Plan Inform and motivate steering committee and pilot participants Inform and motivate all associates Conduct daily briefings with steering committee Training Plan Train all employees which are affected by the pilot Review pilot plan with trainees Goals/Targets Identify success measure Make continuous, small improvements towards the CTQ and specifications Evaluation Process Record observations Set up a feedback loop Compare actuals to goal Elements of an Effective Pilot Plan Pilot Plan 29 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Step 1. Select pilot oversight committee Step 2. Identify pilot participants Step 3. Develop pilot plan Step 4. Communicate to the organization about the pilot Step 5. Train pilot participants Step 6. Execute pilot Step 7. Evaluate pilot results Step 8. Debrief on lessons learned from the pilot Step 9. Adjust process where necessary based on pilot results Step 10. Prepare for full scale implementation or increase scope of pilot to a second area prior to implementation if necessary Steps to Piloting 30 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Product/Service: Insurance Services Function/Process Tested: Claims Payment process Pilot Plan Objectives: 1. Test new “to-be” process 2. Validate expected results 3. Identify risks Pilot Strategy: Pilot within claims department in location A Pilot Duration: 30 days Plan Pilot Actuals Measure Target Tolerance Average Sigma CTQ 5 day cycle time + 1 day Measurement Plan: Pilot Observations: Gaps: Follow-up Actions: Pilot Plan Outline Example 31 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Where to pilot? What location, department or segment of the organizational process?  How do we ensure that the full range of process conditions are tested during the pilot (i.e. cyclical business cycles)?  How long do we need to pilot or how many samples do we need to statistically be sure that the process is capable to produce the desired outcome?  What needs to be measured? How? When? Where?  How do we ensure that pilot process is contained (i.e. not influenced by other processes or departments)?  How to minimize service or production disruptions that the pilot may cause to the business? Key Considerations when Planning the Pilot 32 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. PLAN DO CHECKACT Check the Plan Check the Results Date Completed  Develop Form 4/28  Test Form 5/03  Revise Form 5/10  Roll-Out 5/12 Check Results: Compare graphs such as paretos, histograms, etc. before pilot to the same graphs post pilot Confirm the results via hypothesis testing tools Check Plan and Results 33 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Add more data to an existing run chart or control chart Prepare new Pareto charts for those you created in Measure/Analyze. Make the scale and dimensions the same so you can more accurately judge degree of improvement Draw new histograms on the same scale as the original graphs Before After }Improvement Target }Remaining Gap Good Step 4 changes implemented } Improvement Before After A1 A2 A3 A4 A2 A1 A3 A4 151050 8 7 6 5 4 3 2 1 0 Fr eq ue nc y 654321 8 7 6 5 4 3 2 1 0 Fr eq ue nc y Before After Evaluating Before and After Data 34 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Total Opportunities Total Defects Before Pilot Total Defects After Pilot 960 846 86 Sigma = 0.3 Yield = 1 – = 1 – .88 = 12% 960 846 BEFORE Sigma = 2.8 Yield = 1 – = 1 – .09 = 91% 960 86 AFTER Assessing Pilot Results – Recalculate Process Sigma 35 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Results  How much was the gap between desired and actual reduced?  What targets were missed and why?  Were the plans effective in addressing the root causes you targeted?  What do customers tell you now that the changes are in place?  Has enough progress been made or do you need to go back and try other solutions?  Were there unintended benefits or negative side effects? Methods  Did you follow your plan? Did the pilot represent the conditions of what the actual implementation will be like?  Do you need to modify the plan/solution prior to implementation?  In what ways do you need to modify the process/solution before implementation? When evaluating pilot results, both the results and the methods need to be considered What to Consider when Evaluating Pilot Results 36 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Confirm that you followed the plan and didn’t deviate from it, causing poor results  Retrace your steps and look for flaws or gaps in your analysis  Pick up with that step and start again if necessary  Go back and select another solution if necessary What to do if Desired Results aren’t Achieved After Pilot 37 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  The importance of testing the new solution  What a pilot is and the benefits of conducting one  The elements of an effective pilot plan and the key considerations for making the pilot successful  How to evaluate and confirm pilot results Summary of Section 38 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze Improve ControlDefine Measure Analyze Improve ControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControlDefine Measure Analyze Improve Control End of Lesson: Improve – Risk Planning and Testing Lean Six Sigma Training 39 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze Improve ControlDefine Measure Analyze Improve ControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControlDefine Measure Analyze Improve Control Implementation of Solutions Implementation Planning - Cultural Implementation Planning - Technical Improve – Implement Solution Lean Six Sigma Training 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand the two sides to implementation planning  Learn the elements of the technical implementation plan  Understand how to use an MGPP  Learn various work planning tools  Know what a Gantt Chart is and how to use it  Gain experience developing an implementation plan By the end of this section, you will be able to: Overview – Objectives – Key Topics 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Planning for Implementation The project team has selected the solution, analyzed the potential risks and conducted a pilot test of the solution and is now ready to implement it. You must now translate the drawing board solution design into a working, breathing implementation plan. Implementation Planning Implementation Plan – High Level or Implementation Plan - Detailed 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. There are two sides to Implementation: The technical side The people/cultural side To successfully implement the solution we must plan for both! We will begin by learning about the technical plan…. And The Two Sides to Implementation Planning 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Elements of the technical plan include:  Project definition and objective  A plan for the work involved to implement the solution  Tasks and subtasks to complete the work  Time and schedule to complete the tasks  People and resources (money, equipment, etc.) needed to fulfill the plan The Technical Plan 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  The source of this information should come from your project charter.  Just like the purpose of the charter, the purpose of the project definition is to keep the implementation team on track.  It also serves as the foundation of the implementation plan.  Project Definition should include:  Purpose/goal  Objectives  Specifications  Constraints  Scope The project definition is a statement of the project objective, purpose, goal and scope. Develop Project Definition and Goals of the Implementation 6 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Purpose/Goal: Why are we doing this project? (Ex. To improve productivity? Increase Sales? Reduce lost customers?) Objectives: What specific outcomes are desired? What is the definition of success? (Ex. To implement the new MasterCard payment process with as little impact on the business as possible.) Specifications: What are the targets and specifications for the improved process? (Ex. 5 day cycle time) Constraints: What parameters must the implementation be completed under? (Ex. Time to implement solution must not exceed 3 weeks) Scope: Are there any processes or locations that the solution will not be implemented in? (Ex. Excluded: Tokyo office) Develop Project Definition 7 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. When implementing solutions that are very large in scope or large in the magnitude of change from the “as-is” process, a Multi-Generational Product Plan (MGPP) can be a useful tool to scope the implementation effort into three separate phases.  The Multi-Generational Product Plan (MGPP) is a tool used to define the scope of a new product or new service process as well as to plan the long-term direction of future product/service generations.  It is built around core technologies, competencies or platforms (this can be an excellent tool for solutions that involve technology) Definition of MGPP: Project Definition – Scoping Large Implementation Efforts 8 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Not all teams will use this tool. Many DMAIC solutions are scoped to only require 1 generation. However even for those teams with a small to medium scope, it can still be an effective tool for long term planning and future enhancements to the product/process. Copyright © 2016 Acuity Institute LLC. All rights reserved. Product/ Process Generations Platforms and Technology Vision Long Term direction for each key product/service process based on anticipated evolution of the market and competitor products/services beyond current applications Series of releases; each release characterized by distinct combinations of features or technology Product/service/process competencies which can be leveraged to introduce a number of product generations quickly and to reduce the cost of new product/process development Elements of an MGPP 9 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Generation 1 Generation II Generation III Stop the Bleeding Fill selected product/process voids Take the offensive Fill new target markets Attain technical leadership Deliver productivity breakthroughs Step Stretch Leap Generations of an MGPP 10 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Most DMAIC project are focused on achieving generation 1. Copyright © 2016 Acuity Institute LLC. All rights reserved. MGPP’s uses in the Improve phase:  To break large scoped improvement solutions into manageable phases  To help the organization focus on long term planning around the solution  To plan future releases or enhancements to improvement solution  If some part of the solution is going to have a very unfavorable impact, you can look to the MGPP to see whether it might make sense to move that capability to a later generation  MGPP can control scope additions/changes to current improvement solution design  MGPP can prevent products/services/processes from stagnating while the market changes around them MGPP 11 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Create Work Plan The work plan will be the specific set of tasks and objectives, aligned with identified resources and a defined schedule. It will define the integrated activities and their sequence that the team will use to implement the improvement solution. Tasks & Timeline Aug. Sept. Oct. Nov. Dec. Jan. Feb.Step Budget & Resources Expenses Staff time xxxxx 00.00 xxxxx 00.00 xxxxx 00.00 Bob 5 hrs Develop the Work Plan for Implementing the Solution 12 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. When listing the tasks and activities that must be completed for the solution to be implemented successfully, consider these major activities/elements the plan should include: Tasks & Timeline Aug. Sept. Oct. Nov. Dec. Jan. Feb.Step  Training Plan  Communication Plan  Rollout Schedule  Implementation of Equipment, and Materials (if applicable)  Evaluation Process  Change Management Plan Develop the Work Plan for Implementing the Solution 13 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Project Plans April. May. June July Aug. Sept OctStep Gantt Charts Flowcharts Processing Administration Adjusters Payables Work Planning Tools 14 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Now we want to put all of the tasks associated with the elements of the Implementation plan into a work plan which indicates the dates and owners of each of the tasks and activities. Project plans, Gantt charts and flowcharts are all excellent work planning tools. Copyright © 2016 Acuity Institute LLC. All rights reserved.  A Gantt chart is a project management tool that shows the timing, duration, and interrelationship of steps in a process. Implement New Claim’s Processing System Implement Solution ID 1 2 3 4 5 6 7 8 9 Install new hardware Revalidate System Install new software Train Processing Staff Update documentation Develop Training Plan Train Staff Test Task Name 5/31 6/7 6/14 6/21 MAY JUNE 6/28 Jen, Kris, Sue Conroy Conroy Gwen Team, TBD Team, TBD Gantt Chart 15 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Tasks (level of detail will vary) Tasks ID # Length of bar indicates duration of task. Also indicates start and end point in relationship to other tasks Implement New Claim’s Processing System Implement Solution ID 1 2 3 4 5 6 7 8 9 Install new hardware Revalidate System Install new software Train Processing Staff Update documentation Develop Training Plan Train Staff Test Task Name 5/31 6/7 6/14 6/21 MAY JUNE 6/28 Jen, Kris, Sue Conroy Conroy Gwen Team, TBD Team, TBD Indicates owner of task Illustrates duration of main task Gantt Chart Elements 16 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: There are generally five kinds of relationships between steps in a Gantt chart: 1. No relationship (the tasks are independent) 2. Start-to-end (one task can’t start until another ends) 3. End-to-start (one task can’t end until another starts) 4. Parallel start (both tasks need to start at the same time) 5. Parallel stop (both tasks need to end at the same time) Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  The two sides to implementation planning  The elements of the implementation plan  How to use an MGPP  Various work planning tools  What a Gantt Chart is and how to use it  How to develop an implementation plan Summary of Section 17 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze Improve ControlDefine Measure Analyze Improve ControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControlDefine Measure Analyze Improve Control Implementation of Solutions Implementation Planning - Cultural Implementation Planning - Technical Improve – Implement Solution Lean Six Sigma Training 18 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Understand the importance of developing a plan to prepare the organization to successfully accept and transition through to using the new improvement process  Learn the key elements of a change management plan  Learn tools and techniques to effectively manage stakeholder support for your selected solution  Understand the critical role communication planning plays in a successful implementation  Learn how to develop a project storyboard By the end of this section, you will be able to: Overview – Objectives – Key Topics 19 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  To enable a smooth implementation of the improvement solution  To identify sources of resistance, uncover the reasons, and convert resistors  To build commitment and support for the improvement solution across the organization  For the critical stakeholders to fully support or even embrace the change To help the team develop a comprehensive change management plan and keep the efforts focused, you should clearly define the goals and objectives of the change management effort. Change Management Goals Change Management Plan – Objectives and Goals 20 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Early on in the project we identified the importance of stakeholder influence on the projects success. The implementation of the solution is one of the most critical junctures in the life of the project where stakeholder influence can either make or break the project’s success. Because positive stakeholder influence is so essential to a smooth and successful implementation, it is important to review and re-evaluate our stakeholder analysis specifically for the implementation effort. Project Sponsor Process Owner Middle Management Executive Leadership Front Line Employees Enabling Functions Supplier Team Members Stakeholder Influence During the Implementation Phase 21 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Once the actual solution has been selected to address the process problem, often times stakeholder support can shift either positively or negatively. Therefore it is important to revisit the process for managing stakeholders. In flu en ce o n Pr oj ec t Impact of Change (from the Solution) After Solution Selected Low Medium High Lo w M ed iu m H ig h 9 4 5 6 8 3 9 6 1 2 In flu en ce o n Pr oj ec t Before Solution Selected Impact of Change (from the Solution) Low Medium High Lo w M ed iu m H ig h 9 4 5 6 8 3 9 6 1 2 Stakeholder Shift 22 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Often times a stakeholder who is supportive of the project during the earlier phases of the DMAIC project lifecycle can shift once the solution is selected for the following reasons: - The selected solution is perceived as a threat to the stakeholder’s position of power - The stakeholder wanted a different solution to be selected - The selected solution is perceived by the stakeholder as being too risky or not likely to succeed The selected solution is perceived by the stakeholder as adding too much to daily workload. Stakeholder Map Legend: Triangle = Enthusiast, Square/Rectangle = Neutral, Circle/Oval = Opponent Copyright © 2016 Acuity Institute LLC. All rights reserved. Identify Stakeholders Develop Stakeholder Map Develop Stakeholder Management Plan Step 1 Step 2 Step 3  Re-examine the list of stakeholders  Are there any new stakeholders that should be added when considering the newly selected solution and implementation effort?  Re-evaluate the stakeholder map and identify positive and negative stakeholder shifts in support, based on the selected solution  Identify where key stakeholders need to be for successful implementation To meet the objective of a successful implementation and effectively manage stakeholder shift, we must re-tool the process for managing stakeholders with a focus on the newly selected solution.  Identify source of concern and develop action plan to convert resistors who are critical stakeholders to the successful implementation of the solution. Readdress the Process for Managing Stakeholders 23 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Benefits and Barriers: Assume that it is now two years in the future and we have been successful in implementing the process. What benefits do you see for yourself as an individual, for your dept., and for the company as a whole? Benefits What are the barriers that we as an organization are going to have to overcome in order to make the implemented change a success and thereby achieve the benefits? Barriers Brainstorm the benefits and barriers to implementation with stakeholders, identify top three, and develop action plans Force Field Analysis: Additional Tools to Manage Stakeholders Forcefield Diagram 24 Driving Forces Restraining Forces Goal Brainstorm the driving forces and restraining forces with stakeholders, identify top three, and develop action plans This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Teams can impede their own success when they don’t consider the following when managing stakeholder support:  The importance of political sensitivity  Failing to recognize the need to “share the glory”  Assume technical solution is sufficient  Don’t involve others due to time constraints  Use only one or two conflict resolution styles  Fail to appreciate the human side of implementing solutions Tips and Traps for Managing Stakeholders 25 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Another component to building and maintaining support for the implementation of the improvement solution is aligning systems and structures with the new process solution. When we are expecting stakeholders to be supportive and enthusiastic about the new solution, it is important to make sure the way we organize, train, reward, compensate, and promote aligns with the behavior we are expecting. If organizational measures and rewards don’t link to the desired behavior and the new process solution, we run the risk of the change not being effective or not lasting long term. Aligning Systems and Structures 26 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Do any measurements exist around achieving sigma goals and service quality?  Do any rewards exist around rewarding sigma goals and service quality?  What type of behavior do we want to reward?  What types of behaviors do we want to eliminate?  Are there measurements in place today that actually promote the wrong behavior or are in conflict with what we are trying to achieve with the new “to-be” process? Aligning Systems and Structures Key considerations for aligning systems and structures with the new process goals: 27 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. One of the most important elements to facilitate change is communication to those affected by the change. Consistent and effective communication also fosters cooperation and collaboration which are key elements to an efficient transition to the “to-be” process. Communication Collaboration Change Communication Planning 28 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Below is a review of some key considerations when developing your communication plan for the implementation of the solution.  Organizational communication is a change agent The purpose of communication is not just to convey information, but to change behavior. Project communication should change behavior by building support of and buy-in toward the project's objectives.  Communication is a two way process Listening and encouragement of feedback is critical to understanding whether project communication has been effective and to evaluate whether the project is being supported or not; and if not why.  Craft communication in the interests and language of the target audience To be effective, the message should be focused on the receiver of the communication’s interests in both content and context.  Communication must be compelling and continuous To be compelling consider creative ways to deliver your message. To be remembered and internalized, communication needs to be continuous and consistent. Communication Planning Considerations 29 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. A communication plan for the project was developed back in the Define phase. That plan should be revisited at this stage in the project to identify specific messages that need to be delivered regarding the implementation of the solution.  Communication regarding the solution and why that particular solution was selected  Communication to key stakeholders to prevent resistance and gain support for the solution  Communication around the implementation schedule and timeline  Selling the project story and its benefits to the organization The key communication messages that should be disseminated regarding the implementation fall into the following major categories: Communication Plan for Implementation of the Solution 30 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. All employees All employees Audience SurveySponsorDMAIC Team Gallery Walk to present project story board August 30Selling the project story and benefits Check in with key stakeholders for feedback SponsorBlack Belt / Green Belt Mass e-mail campaign to the organization August 5Selling the project story and benefits Feedback Loop Required Approval OwnerMethodWhenWhat Implementation Communication Plan Example Communication Plan 31 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. When looking at the core categories of communication that should be considered for the implementation plan, we have looked at all the categories but the last. Communicating the “project story” and its benefits to the organization is an important part of facilitating change and building support for the project across the organization. Communication regarding the solution and why that particular solution was selected Communication to key stakeholders to prevent resistance and gain support for the solution Communication around the implementation schedule and timeline Selling the project story and its benefits to the organization as a whole Communication Planning 32 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What is a Project Story?  A presentation and visual depiction of the steps the team took during each phase of the DMAIC process.  It communicates key deliverables and accomplishments that were completed by the team during each phase of the improvement process.  A project story brings all the work and effort the team put into their DMAIC project to life through a storyboard presentation. Why Communicate your Project Story?  Provides the organization with a full understanding and appreciation of the rigor that went into selecting the solution.  It provides a standard way to communicate the team’s progress.  Builds enthusiasm and support for the project.  Educates the organization on the Lean Six Sigma DMAIC process and the DMAIC project lifecycle.  “Selling the project story” and its benefits to the organization is crucial in developing a critical mass of support for the Quality initiative. The Project Story 33 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. The most effective way to tell and “sell” the project story is by developing and presenting a storyboard. What’s a Storyboard?  A visual illustration of the project story (steps, tasks, key deliverables, and results from each phase of the project) typically displayed on a large board so it can be easily read and viewed. How to Communicate the Project Story 34 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Team Information DEFINE MEASURE Project Overview ANALYZE IMPROVE CONTROL 9080706050403020100 60 50 40 30 20 10 0 Average Hold Time # of C al ls January Avg. Hold Time Distribution Plot Add res s Inac cur ate Line Item T ota l Am oun t Ove rch arg e Oth ers 42 32 14 9 3 42.0 32.0 14.0 9.0 3.0 42.0 74.0 88.0 97.0 100.0 0 50 100 0 20 40 60 80 100 Defect Count Percent Cum % Pe rc en t C ou nt Pareto Chart for Statement Accuracy 0Subgroup 5 10 0.000 0.001 0.002 0.003 0.004 0.005 0.006 0.007 Pr op or tio n IncreasedOpportunities per Unit Charter CTQ’s Process Map Data Coll. Sigma Capability Root Causes Solution Selected FMEA Pilot Monitoring Response plan A 12 22 145 B 52 43 130 C 48 43 180 “1 Page” Project Storyboard Example Project Storyboard 35 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. The Gallery walk also provides an opportunity for the members of the organization to ask questions of the project team about the project. Gallery walks are a very effective communication method to use before the solution is implemented, as well as, throughout the life of the project to communicate project progress and generate enthusiasm for the project. Project Storyboards are typically presented at a Gallery Walk. What’s a Gallery Walk? Gallery walks are scheduled coordinated meetings where members of the organization are invited to attend the meeting to hear about each of the Lean Six Sigma projects that are being worked on by DMAIC teams throughout the organization. How to Communicate the Project Story at a Gallery Walk 36 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 1. Communicate the focus of your project and the phase of DMAIC the team is currently in 2. When presenting the storyboard, consider your audience 3. Identify the story you want to tell them. What do you really want the organization to know and understand about your project? 4. Emphasize the benefits of your project 5. Use strong visual aids to tell your story (graphs and charts) 6. Communicate the key deliverable, lessons learned and output of each DMAIC phase of the project 7. Have the entire team participate in the gallery walk presentation, this is a great team builder Storyboard and Gallery Walk Tips and Traps 37 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 8. Keep your storyboard to no more than 10 slides (for a gallery walk) 9. Slides can have a lot packed in, but be careful not to make too busy 10. When developing the gallery walk presentation for the storyboard, draw it out on paper first before you create your final presentation 11. Developing a presentation script makes the presentation more effective and can be a good exercise for the team, particularly if the team has inexperienced presenters 12. Be creative! 13. Be sure to conduct a survey after the gallery walk to determine if your communication was effective 14. Allow sufficient time to develop your project storyboard and practice the gallery walk presentation Storyboard and Gallery Walk Tips and Traps 38 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  The importance of developing a plan to prepare the organization to successfully accept and transition through to using the new improvement process  The key elements of a change management plan  Tools and techniques to effectively manage stakeholder support for your selected solution  The critical role communication planning plays in a successful implementation  How to develop a project storyboard Summary of Section 39 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze Improve ControlDefine Measure Analyze Improve ControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControlDefine Measure Analyze Improve Control Implementation of Solutions Implementation Planning - Cultural Implementation Planning - Technical Improve – Implement Solution Lean Six Sigma Training 40 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Know the steps to implementing the solution  Understand the key questions that need to be answered to complete the Improve phase By the end of this section, you will be able to: Overview – Objectives – Key Topics 41 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Now that the planning process is complete it is time to execute the plans  If the appropriate amount of time and attention to detail was put into the planning of the implementation, the rollout of the solution should be successful Implementing the Plans 42 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 1. Update “to-be” process maps to reflect any changes that came out of the pilot 2. Prepare data collection forms 3. Conduct training 4. Rollout process on a small scale first if possible, then move to full scale rollout 5. Monitor implementation and evaluate results Steps to Implementing the Solution 43 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved.  Use the same methods and procedures used during the pilot to monitor and evaluate results PLAN ACTUALS  Conduct daily “book end” meetings with the implementation team  Meet at the beginning of each morning to discuss any key information points or plans  Meet at the end of each day to debrief on the outcome and results of process performance for that day Before implementation 151050 8 7 6 5 4 3 2 1 0 Fr eq ue nc y 654321 8 7 6 5 4 3 2 1 0 Fr eq ue nc y After Implementation Monitoring the Implementation and Establishing Check Points 44 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Solution Selection: What other potential solutions did the team consider? What were the primary criteria for selecting the solution(s)? Cost/Benefit: What is the net project benefit? What are the assumptions of the cost/benefit analysis? Risk Assessment:  How did the team analyze process risks? What risks were identified? What was done to mitigate the risks?  In what ways has the solution been modified based on pilot results? Yes No Yes No Yes No Tollgate Questions and Check list Items: Improvement Completion Checklist 45 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Tollgate Questions and Check list Items: Solutions Pilot: Was the solution tested? Did the pilot represent the conditions of the actual implementation? What measures were established for pilot results? What target performance levels were set for those measures? What targets were missed, and why?  In what ways has the solution been modified based on pilot results? Implementation Planning: What is the implementation schedule and timeline? What new stakeholders were added as a result of the selected solution? Did any of the stakeholders negatively shift their position after solution selection? What were the survey results from the gallery walk? Yes No Yes No Improvement Completion Checklist 46 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. What you learned during this section:  Know the steps to implementing the solution  Understand the key questions that need to be answered to complete the Improve phase. Summary of Section 47 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Define Measure Analyze Improve ControlDefine Measure Analyze Improve ControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControlDefine Measure Analyze Improve Control End of Lesson: Improve – Implement Solution Lean Six Sigma Training 48 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Control Phase Lean Six Sigma Training 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Control Phase Overview Lean Six Sigma Training 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Control develops the monitoring plan that will be used to ensure the process gains are maintained, develops the response plans should a problem with the process develop, documents all processes and procedures for the organization, reviews any replication opportunities from the project, and celebrates the projects success. Control Phase Introduction 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. ANALYZE CONTROL IMPROVE MEASURE DEFINE  Develop Process Control Monitoring Plan  Standardize Processes and Develop Change Implementation Plans  Create Storyboards of Improvement  Identify Replication Opportunities  Complete Project Closure and Celebrate Success Processing Administration Adjusters PayablesProcessing Administration Adjusters Payables Control Phase Overview 4 Loan Processing Cycle Time Sigma = >6
Mean CL: 8.86
1.91
15.81
1.31
3.31
5.31
7.31
9.31
11.31
13.31
15.31
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
In
di
vi
du
al
s
– C
hi
ca
go
L
oa
n
P
ro
ce
ss
in
g
C
yc
le
T
im
e
Mean CL: 1.52
-0.11
3.15
-0.11
0.39
0.89
1.39
1.89
2.39
2.89
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
In
di
vi
du
al
s
– C
hi
ca
go
L
P
L
oa
n
R
ev
ie
w
in
g
Ti
m
e
Chicago Loan Processing Cycle Time
Chicago LP Reviewing Time Chicago Package Accuracy – Error Type
Final Package Accuracy Sigma = 3.5 LP Reviewing Time Sigma = 3.1
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Develop
Process
Control Plan
Develop
Response
Plan
Document
Solutions
 Control Chart
 Dashboard
Measurement
Plan Matrix
 Dashboard
 Benefits
Realization
 Response
Plan
 Process
Management
Chart
 Process
Reviews
 Process and
Procedures
 Communication
Plan
Control Tools
Control Approach
5
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Control Phase Deliverables
Define Measure Analyze Improve Control
Project Charter
Project Management
Project Plan
Process Definition
SIPOC
As-Is Process
Map
Quick Win
Identification
Stakeholder
Management
Stakeholder Map
Stakeholder
Management Plan
Communication
Plan
Voice of Customer
Customer
Identification
VOC Research
Plan
Kano Analysis
CTQ Identification
 Root Cause Analysis
Affinity Diagram
Fishbone Diagram
and/or 5 Why’s
Lean Process
Analysis
Lean Tools and
Measures
Graphical Data
Analysis
Histogram
Pareto Chart
Box Plots
Correlation
Analysis
Statistical Data
Analysis
Linear Regression
Multiple
Regression
Root Causes
Identified
Quick Win
Identification
Identify Measures
X/Y Matrix
Data Collection
Operational
Definitions
Measurement
Systems Analysis
(MSA)
Data Collection
Plan
Describe and Display
Data
Histogram
Pareto Chart
Pie Chart
Run Chart
Control Charts
Baseline Performance
Sigma
Performance
Yield
Process
Capability
Quick Win
Identification
Identify and Select
Solutions
Generate Solutions
Benchmarking
Solutions
Prioritization Matrix
Solution Selection
Matrix
To-Be Process Map
Financial Impact of
Solutions
Cost/Benefit Analysis
Risk Planning and
Testing
Failure Modes and
Effects Analysis
(FMEA)
Pilot Plan
Implement Solutions
Multi-Generational
Product Plan (MGPP)
Implementation Plan
Stakeholder
Management
Project Storyboard
Process Control
Control Charts
Process
Monitoring Plan
Dashboard
Response Plan
Project
Documentation
Process
Procedures
Replication
Opportunities
Solution Transfer
Plan
6
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End of Lesson: Control Phase Overview
Lean Six Sigma Training
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Control – Process Control
Dashboards
Process Monitoring
Introduction to Process Management
Lean Six Sigma Training
Measure ControlAnalyze ImproveDefine ControlControlImproveMeasure ControlControlAnalyze ImproveImproveDefine ControlControl
1
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 Define Process Management
 Understand the benefits of an organization using Process
Management vs. Functional Management
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
2
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A Process Management System is a
measurement system used to ensure the outputs
of processes are predictable (stable) and meet
customer requirements (capable).
Definition of Process Management System
3
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Why Process Management?
Provides a framework that will facilitate process improvement and
process design activity that ultimately drives the fulfillment of
important organizational goals.
Process Management enables an organization to:
 Understand operations – process metrics
 Select the right processes for improvements
 Enable clear links between customer requirements and
internal operational activities
 Drive process ownership and accountability
4
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What are the
functional
objectives
of these
departments?
What are their
real priorities?
Functional Management
FUNCTIONAL OBJECTIVES
Sales Under-
writing Processing Claims
Info.
Technology
5
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Many organizations have been based on functional differentiation or specialization.
This has resulted in the traditional vertical/hierarchical organizations. Management
direction, goals, and measurements have been deployed or cascaded down the existing
organizational structure.
In a traditional functional organization, the dominant focus of people is:
 Please the boss…
 The department’s specialized knowledge or skill.
 The functional goals which may not have been stated in terms that the external
customer would recognize.
 The people in your silo.
Successful performance is defined as winning for the function. Things often fall through
the cracks in this model causing fragmented efforts at satisfying external customers’
needs.
Functional Management System
6
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What are
employees’
REAL
priorities?
Process G
oals
Sales Under-
writing Processing Claims
Info.
Technology
Sell
Products
& Services
Process
Contracts
FUNCTIONAL OBJECTIVES
Process
Claims
Process Performance
What We Sell…
Process Performance
How We Sell…
Process Performance
The Service We Provide…
Process Performance
The Service We Provide…
Process Management
7
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The need to manage process quality with a link to strategic objectives
What are
employees’
REAL
priorities?
Functional Management vs. Process Management
8
What are
employees’
REAL
priorities?
CustomerDevelop
Products &
Services
Sales Process Claims Info.
Tech
Process
Contracts
FUNCTIONAL OBJECTIVES
Process G
oalsProcess
Claims
Process Performance
Process Performance
Process Performance
Process Performance
Under-
writing
Customer
Customer
Customer
STRATEGIC
OBJECTIVES
What are
employees’
REAL
priorities?
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Functional And Process Management Systems
From the figure above, we see the connection of core processes with Strategic Objectives, the linkage of process deliverables with customers, and the ongoing interest that Shareholders and Upper Management will have in functional contributions to traditional business indicators such as revenue, market share, profit, ROI, etc. To meet customer needs, Functional and Process Management systems must be integrated and harmonized so that both support Strategic Objectives.

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 Provides a system of processes and indicators to help manage objectively
 Focuses on the customer
 Provides a common language within or across departments
 Internally you know how well you are doing in the eyes of the customer
 Provides accurate focus for improvement teams
 Provides learnings supported by data that can be applied to other
processes
Benefits to Process Management
9
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From To
Function-Oriented
Somewhat Flexible, Efficient,
Effective Processes
High Walls between Functions
Uneven Cycle Time
Focus on the Function/Project
Value Stream is in the middle
Quality is added on
Cross-Functional
Process Focus
Increased Flexibility, Better
Efficiency, Greater Effectiveness
Walls between Functions
broken down
Improved Cycle Time
Focus on the Customer
Value Stream is end-to-end
Quality is built in
Sub-Optimization Integrated System
What will Change as a Result of Process
Management?
10
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Eliminating departmental barriers and becoming process focused takes time. As the shift occurs from well-defended functional-silos to cross-functional processes, the process becomes more flexible, efficient and effective at delivering quality to its customers. Department walls become less visible as the process and its outputs become more visible and dominant.
Process improvement results in processes that take less time, have steps that only add value to the customer, have fewer hand-offs, and fewer defects and errors.

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What does a Process Management System Look
Like?
 There will be as much focus to processes as to individual functions
 Everyone will be able to more efficiently utilize resources
 Employees will know all of the process steps and how they add value
 Employees will understand how the process is performing
 Customers’ requirements will become known and everyone in the
organization will strive to meet or exceed them
 Employees will help manage each other instead of escalating conflicts
 Hand-offs between employees are smooth and boundaryless
 Processes will be objectively and frequently measured and reviewed
11
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1. How are these different from traditional management approaches?
2. When your Process Management System is in place, what will be different for your organization compared to the past?

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What you learned during this section:
 The definition of Process Management
 The benefits of an organization using Process Management
vs. Functional Management
Summary of Section
12
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Control – Process Control
Dashboards
Process Monitoring
Introduction to Process Management
Lean Six Sigma Training
Measure ControlAnalyze ImproveDefine ControlControlImproveMeasure ControlControlAnalyze ImproveImproveDefine ControlControl
13
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 Understand what is meant by process control
 Understand the types of control charts
 Determine how to develop a monitoring plan
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
14
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Document and Standardize
(covered later in Project Documentation
section)
4. How can I assure that things will
continue?
Response Planning3. What do I do if I detect a change in
the process?
Process Monitoring2. How can I detect changes in my
process?
 Earliest possible detection
 Acceptable false alarm
Process Monitoring1. What should I monitor?
TopicQuestion
Four Key Questions for Managing and Controlling
Processes
15
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Process Control is:
The activities necessary to help to maintain the
gains the project team has accomplished through
their improvements.
What is Process Control?
16
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Using Control Charts to Monitor for Process
Control
The more we know about our process,
the more likely we will be able to predict
process performance
Using Control Charts to track and
monitor our process indicators is
critical to being able to Control and
manipulate the process outcome
(output)
17
therefore……
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Monitoring a Process for Control
Ongoing monitoring of the process is important for two reasons:
 Ensure that the process is in control
 Maintain process in its stable state
 Compare with standards or control limits
 If not within standard or out of control,
seek to identify special cause, eliminate
it and prevent recurrence
 Identify opportunities for future improvements
18
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Monitoring a process helps us answer 5 key questions:
 What is the current performance level?
 Has the performance changed?
 Do we need to adjust the process?
 Do we need to improve the process?
 How will the process perform in the future?
Adjust &
Improve
Compare
Current
Status
Predict
Future
Performance
Past
Performance
Present
Performance
For comparison with baseline
performance in Measure
Monitoring a Process
19
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Copyright © 2016 Acuity Institute LLC. All rights reserved.
X
X
X
X X X X
Y
Y
Y
Process Flow
 Key input and
process
measures (X)
that track
variables
identified in your
project as Key
drivers of Project
Y variables
 Key output
measures (Y) from
the customers’
perspective
Process Variables
(Xs)
Input
Variables
(Xs)
Outputs
(Ys)
NOTE: Whether or not improvements were
made to inputs, process, or outputs –
Monitoring should still be developed for all
critical measures
What Should We Monitor
20
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The measures that you choose to monitor in the control plan are the critical measures for your process. These are the process management measures that the Process Owner will rely on to track process performance over time.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Special Cause Variation
Sporadic, isolated events
that affect a Process
Management Role: Eliminate
Common Cause Variation
Expected, normal, random
fluctuations in Process
Management role: Reduce
Categorizing Variation on a Control Chart
21
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By observing how variation in the process causes results to fluctuate, we can
make some objective decisions about when to take action.
We do not always Want to take action.
When a process has special or assignable causes (i.e. out of control points) the
action necessary to improve the process is investigation and removal of those
special causes.
Processes that vary only from common causes will perform within the upper
and lower control limits. If a process has only normal or common causes of
variation, the focus should be on improving the process itself.
If process variation is not understood, time and money may be wasted reacting to a
variation that is normal. Fixing something that does not need to be fixed can
introduce more variation to the process and reduce the ability to meet
customer’s needs.
Key Point:
Using Control Charts to Make Decisions
22
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Out of Control
Upper Control Limit
Lower Control Limit
#1
fre
qu
en
cy
LSL USL
Not Capable of
Meeting Specification
fre
qu
en
cy
LSL USL
Not Capable of
Meeting Specification
In Control
Upper Control Limit
Lower Control Limit
#2
Four Possible States of the Process
23
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– Out of control and out of specification
This situation is the least optimal because you have two types of variation problems to consider and the process clearly isn’t meeting customer expectations.
– In control and not meeting customer specifications
Getting the process in control/stable is the first step in improving the process, however it is still not meeting customer expectations.
Note: It’s possible to be inside the control limits, yet still out of control as a result of shifts, patterns or trends in the data.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Capable of Meeting
Specification
fre
qu
en
cy
LSL USL
Out of Control
Upper Control Limit
Lower Control Limit
#3
In Control
Upper Control Limit
Lower Control Limit
#4
Capable of Meeting
Specification
fre
qu
en
cy
LSL USL
Four Possible States of the Process – Continued
24
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– Not in control but meeting customer specifications
In this scenario, the customer specifications are broad enough to accommodate the instability in the process but the customer is being satisfied purely by chance. Because the process is not predictable, we cannot guarantee the customers specifications will continue to be met.
– In control and meeting customer specifications
This is the most optimal state of the process. The process is both stable and capable. The goal is to have all processes in this state.
Note: It’s possible to be inside the control limits, yet still out of control as a result of shifts, patterns or trends in the data.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
It is inaccurate to put specification limits on a Control Chart.
Upper Control
Limit
Lower Control
Limit
“Control Limits”
Upper Spec
Limit
Lower Spec Limit
“Spec Limits”
 Defined by the customer
 Help determine if the process is
producing defects
 Not plotted on control charts
 Change when customer
requirements change
 Defined by the process
performance
 Help determine if the process is in
control
 Plotted on control charts
 Change when the process changes
Voice of
Process
Voice of
Customer
Key Concept – Control Limits vs. Specification
Limits
25
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Common Errors in Using Control Charts
 Management/Process Owners do not buy into the concept
 Special cause variation goes unnoticed
 Non-random patterns are not studied for special causes
 Poor or erroneous measurements are used
 Data on charts is not current
 Specifications are plotted on charts
26
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Use this chart to select the type of control chart to use.
Discrete
ImR Chart
Continuous
Type of Data
Subgroup Size
of 1
Rational Small
Subgroups (<8- 10) Rational Large Subgroups (>8-
10)
X and S
Chart
_
np Chart
Classification
(binomial data)
Sample Size is
Constant
Sample Size
Varies p chart
u Chart
Count
Opportunity
Varies
Opportunity is
Constant c chart
OR
OR
OR
OR
OR
X and R
Chart
_
Control Chart Types
27
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For X-bar and R and X-bar and S you will need to collect data in sets of points called subgroups, or logical groupings of data.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Overview of the different types of control charts
Discrete data control charts:
np Chart – used with classification data (i.e. pass/fail, good/bad) and charts the number of
defectives in each subgroup (sample size is constant).
p Chart – used with classification data (i.e. pass/fail, good/bad) and charts the proportion of
defectives in each subgroup (sample size varies).
u Chart – used with count data (e.g. number of defects) and charts the number of defects
per unit sampled in each subgroup (opportunity for defects varies).
c Chart – used with count data (e.g. number of defects) and charts the defect count per
sample (opportunity for defects is constant).
Continuous data control charts:
ImR Chart (Individuals) – for analyzing individual data points and rational subgroups can
not be formed from the data (data is assumed to be normally distributed).
X and R Chart – for analyzing the averages of small subgroups (<8-10) can be formed from the data. X and S Chart – for analyzing the averages of large subgroups (>8-10) can be formed from
the data.
Selecting a Control Chart
28
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Number of defects,
accidents or flaws
# of accidents/month
# of times the phone is
not answered within
three ring
# of breakdowns/week
# of flaws on an
automobile
Fraction of
“defectives”
fraction of requests not
processed within 15
minutes; fraction of
orders not processed
perfectly the first time
through (first-pass
quality)
Situation Chart Used
c Chart
u Chart
p Chart
np Chart
Variables data, one
figure at a time
sales, cost variances,
customer satisfaction
score, total cycle time
per order, average
cycle time per month
Variables data, sets of
measurements
Situation Chart Used
ImR Chart
(Individuals)
X and R
Chart
X and S
Chart
_
_
Examples of which Control Chart to Use
29
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X Chart
0
5
10
15
20
25
30
35
40
45
50
1/1
/20
04
1/8
/20
04
1/1
5/2
004
1/2
2/2
004
1/2
9/2
004
2/5
/20
04
2/1
2/2
004
2/1
9/2
004
2/2
6/2
004
3/4
/20
04
3/1
1/2
004
3/1
8/2
004
3/2
5/2
004
Date
Ch
ica
go
Lo
an
P
ro
ce
ss
ing

Cy
cle
Ti
me
Range Chart
0
5
10
15
20
25
1/1
/20
04
1/8
/20
04
1/1
5/2
004
1/2
2/2
004
1/2
9/2
004
2/5
/20
04
2/1
2/2
004
2/1
9/2
004
2/2
6/2
004
3/4
/20
04
3/1
1/2
004
3/1
8/2
004
3/2
5/2
004
Date
Ra
ng
e
 The first control chart (X Chart) is
designed to monitor the variation
from data point to data point or
subgroup to subgroup (depending
on the control chart used).
 The second control chart (Range
Chart) is designed to monitor
variation within a sample of data
points. The range of a process is a
reflection of the amount of variation
in the process and can be useful to
detect changes in variation.
 It is possible that the averages could remain fairly consistent, but the spread within the
samples could fluctuate wildly. By monitoring both the variation between data points and
variation within data points, we can detect special cause variation more effectively.
Why Two Charts with Continuous Data?
30
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Chart3

39 29.5384615385 45.2634615385 13.8134615385

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Data1
Average
UCL
LCL
Date
Chicago Loan Processing Cycle Time
X Chart

Case Study Histogram

Chicago Loan Processing Cycle Time

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The data set is the Loan Processing Cycle Time for Chicago. We want to display and describe the variation in the process. Follow these instructions to create the Histogram:
1. Click “Engine Room” from the toolbar above.
2. Select Measure from the menu.
3. Select Histogram from the menu.
4. Select Case Study Histogram from the menu in “Select Worksheet”.
5. Click “OK”
6. Select Chicago Loan Processing Cycle Time from the menu in “First Variable”.
7. Click “OK”
8. Engine Room will generate a new worksheet entitled “Histogram”.
When completed, answer the following questions:
1. How would you describe the variation in the data?
2. What conclusions can you draw from the Histogram and descriptive statisics?

Case Study Run Chart

Date Chicago Loan Processing Cycle Time

1-Jan 39

2-Jan 25

3-Jan 26

4-Jan 45

5-Jan 30

6-Jan 27

7-Jan 22

8-Jan 25

9-Jan 32

10-Jan 32

11-Jan 30

12-Jan 33

13-Jan 26

14-Jan 21

15-Jan 34

16-Jan 34

17-Jan 32

18-Jan 33

19-Jan 27

20-Jan 21

21-Jan 35

22-Jan 37

23-Jan 24

24-Jan 27

25-Jan 27

26-Jan 29

27-Jan 20

28-Jan 32

29-Jan 14

30-Jan 37

31-Jan 32

1-Feb 39

2-Feb 34

3-Feb 36

4-Feb 25

5-Feb 31

6-Feb 31

7-Feb 24

8-Feb 28

9-Feb 41

10-Feb 24

11-Feb 33

12-Feb 34

13-Feb 30

14-Feb 30

15-Feb 21

16-Feb 37

17-Feb 32

18-Feb 27

19-Feb 34

20-Feb 36

21-Feb 23

22-Feb 25

23-Feb 29

24-Feb 32

25-Feb 26

26-Feb 31

27-Feb 38

28-Feb 22

29-Feb 29

1-Mar 37

2-Mar 35

3-Mar 30

4-Mar 34

5-Mar 30

6-Mar 21

7-Mar 37

8-Mar 24

9-Mar 32

10-Mar 19

11-Mar 24

12-Mar 23

13-Mar 27

14-Mar 19

15-Mar 30

16-Mar 27

17-Mar 32

18-Mar 31

19-Mar 29

20-Mar 28

21-Mar 31

22-Mar 36

23-Mar 15

24-Mar 30

25-Mar 33

26-Mar 31

27-Mar 30

28-Mar 34

29-Mar 28

30-Mar 32

31-Mar 29

The sample data set is the Loan Processing Cycle Time for Chicago with dates. We want to display and describe the variation in the process. Follow these instructions to create the Run Chart (Trend Chart in Engine Room):
1. Click “Engine Room” from the toolbar above.
2. Select Measure from the menu.
3. Select Trend Chart from the menu.
4. Select Chicago Loan Processing Cycle Time from the menu in “Data”.
5. Select Date from the menu in “Time Period”.
6. Click “OK”
7. Engine Room will generate a new worksheet entitled “Trend”.
When completed, answer the following questions:
1. How would you describe the variation in the data?
2. What conclusions can you draw from the Run Chart?

Case Study Control Chart

Date Chicago Loan Processing Cycle Time

1-Jan 39

2-Jan 25

3-Jan 26

4-Jan 45

5-Jan 30

6-Jan 27

7-Jan 22

8-Jan 25

9-Jan 32

10-Jan 32

11-Jan 30

12-Jan 33

13-Jan 26

14-Jan 21

15-Jan 34

16-Jan 34

17-Jan 32

18-Jan 33

19-Jan 27

20-Jan 21

21-Jan 35

22-Jan 37

23-Jan 24

24-Jan 27

25-Jan 27

26-Jan 29

27-Jan 20

28-Jan 32

29-Jan 14

30-Jan 37

31-Jan 32

1-Feb 39

2-Feb 34

3-Feb 36

4-Feb 25

5-Feb 31

6-Feb 31

7-Feb 24

8-Feb 28

9-Feb 41

10-Feb 24

11-Feb 33

12-Feb 34

13-Feb 30

14-Feb 30

15-Feb 21

16-Feb 37

17-Feb 32

18-Feb 27

19-Feb 34

20-Feb 36

21-Feb 23

22-Feb 25

23-Feb 29

24-Feb 32

25-Feb 26

26-Feb 31

27-Feb 38

28-Feb 22

29-Feb 29

1-Mar 37

2-Mar 35

3-Mar 30

4-Mar 34

5-Mar 30

6-Mar 21

7-Mar 37

8-Mar 24

9-Mar 32

10-Mar 19

11-Mar 24

12-Mar 23

13-Mar 27

14-Mar 19

15-Mar 30

16-Mar 27

17-Mar 32

18-Mar 31

19-Mar 29

20-Mar 28

21-Mar 31

22-Mar 36

23-Mar 15

24-Mar 30

25-Mar 33

26-Mar 31

27-Mar 30

28-Mar 34

29-Mar 28

30-Mar 32

31-Mar 29

The sample data set is the Loan Processing Cycle Time for Chicago with dates. We want to display and describe the variation in the process. Follow these instructions to create the Individuals Chart (XmR in Engine Room):
1. Click “Engine Room” from the toolbar above.
2. Select Measure from the menu.
3. Select XmR Chart from the menu.
4. Select Chicago Loan Processing Cycle Time from the menu in “Data”.
5. Select Date from the menu in “Time Period”.
6. Click “OK”
7. Engine Room will generate a new worksheet entitled “X and Moving Range”.
When completed, answer the following questions:
1. How would you describe the variation in the data?
2. What conclusions can you draw from the Individuals Charts and descriptive statistics?

Case Study Pareto

Application Fields Number of Errors

Name 12

Address 3

Loan # 0

Loan Amount 26

Loan Duration 2

City 1

State 0

The data set is from a checksheet. We want to display and describe the variation in the process. Follow these instructions to create the Pareto:
1. Click “Engine Room” from the toolbar above.
2. Select Define from the menu.
3. Select Pareto Analysis from the menu.
4. Select Case Study Pareto from the menu in “Select Worksheet”.
5. Click “OK”
6. Select Number of Errors from the menu in “Data”.
7. Select Application Fields from the menu in “Category”.
8. Click “OK”
9. Engine Room will generate a new worksheet entitled “Pareto”.
When completed, answer the following questions:
1. How would you describe the variation in the data?
2. What conclusions can you draw from the Pareto and descriptive statistics?

Case Study Correlation

Number of Personnel Loans Processed

26 111

24 114

27 111

16 118

21 115

22 112

15 117

21 116

38 103

48 102

39 107

50 101

18 116

20 114

28 110

31 109

50 100

41 103

42 103

40 105

21 115

18 116

42 104

15 119

42 106

9 119

52 101

36 107

46 102

21 113

41 104

22 115

30 110

25 112

31 108

19 115

17 118

47 102

17 118

21 114

15 118

31 108

21 114

22 115

43 104

28 111

22 110

17 115

48 101

25 111

18 117

33 108

13 118

17 118

42 106

27 112

41 105

40 106

28 109

50 101

21 114

28 111

50 101

48 101

35 108

34 111

41 104

29 110

22 115

26 111

12 119

16 115

35 108

24 113

23 116

21 113

28 110

46 103

20 116

46 101

The data set is the number of loans processed per day.
We want to see if there is a strong relationship (correlation) between the loans processed per day and the number of personnel. Follow these instructions to perform correlation:
1. Click “Engine Room” from the toolbar above.
2. Select Measure from the menu.
3. Select scatter plot from the menu.
4. Select Case Study Correlation from the menu in “Select Worksheet”.
5. Click “OK”
6. Select Loans Processed from the menu in “Data”.
7.Select number of personnel from the menu in ‘Data-2 “.
8. Click “OK”
9. Engine Room will generate a new worksheet entitled “Scatter”.
When completed, answer the following questions:
1. How would you interpret the graph
2. What conclusions can you draw from p-value and the R-squared value?

Obtaining R Value

Number of Personnel Loans Processed

26 111

24 114

27 111

16 118

21 115

22 112

15 117

21 116

38 103

48 102

39 107

50 101

18 116

20 114

28 110

31 109

50 100

41 103

42 103

40 105

21 115

18 116

42 104

15 119

42 106

9 119

52 101

36 107

46 102

21 113

41 104

22 115

30 110

25 112

31 108

19 115

17 118

47 102

17 118

21 114

15 118

31 108

21 114

22 115

43 104

28 111

22 110

17 115

48 101

25 111

18 117

33 108

13 118

17 118

42 106

27 112

41 105

40 106

28 109

50 101

21 114

28 111

50 101

48 101

35 108

34 111

41 104

29 110

22 115

26 111

12 119

16 115

35 108

24 113

23 116

21 113

28 110

46 103

20 116

46 101

This is the same data set we used for the scatter plot.
Now we want to obtain the “r” value (correlation coefficient) to help us detrmine the strength of the correlation. Follow these instructions to identify the correlation coefficient (a.k.a pearson coefficient):
1. Click “Insert” from the Excel toolbar above.
2. Select function from the menu.
3. Select statistical from the “Select a Category” menu
4. In the “Select a Function” menu, scroll down to PEARSON and select.
5. Click “OK”
6. To populate the field “Array 1”, in the excel worksheet select and highlight fields A1-A81.
7.To populate the field “Array 2”, in the excel worksheet select and highlight fields B1-B81
8. Click “OK”
9. Excel will generate an “r” value in the worksheet itself.
When completed, answer the following questions:
1. How would you interpret the “r” value (correlation coefficient)?

Case Study Regression

Loans Processed Loans per hour (average) (mins)

111 6.1

114 6.2

111 5.9

118 6.7

115 6.4

112 5.7

117 6.9

116 7

103 5.8

102 5.8

107 5.2

101 5.7

116 6.6

114 6.4

110 6

109 6

100 5.1

103 5.2

103 4.9

105 5.8

115 6.5

116 6.8

104 5.7

119 6.9

106 5.4

119 7

101 5.3

107 5.8

102 5.1

113 6.1

104 5.4

115 6.5

110 6

112 6

108 5.9

115 6.1

118 6.5

102 5.2

118 6.7

114 6.6

118 6.7

108 5.9

114 6.5

115 6.3

104 5.7

111 6.9

110 5.7

115 6.8

101 5.2

111 5.9

117 6.6

108 5.6

118 6.4

118 6.6

106 5.3

112 6

105 5.5

106 5.6

109 5.6

101 5.4

114 6.4

111 6.1

101 6.5

101 5.9

108 5.5

111 6.3

104 6

110 6.5

115 6.8

111 6.2

119 7

115 6.9

108 5.9

113 6.1

116 6.9

113 5.9

110 5.4

103 4.8

116 6.4

101 5.8

The data set is the Loans Processed.
We want to see if there is a correlation between the loans processed per hour and the total loans processed per day. Follow these instructions to perform regression:
1. Click “Engine Room” from the toolbar above.
2. Select Analyze from the menu.
3. Select Simple Regression from the menu.
4. Select Case Study Regression from the menu in “Select Worksheet”.
5. Click “OK”
6. Select Loans Processed from the menu in the “Dependent Variable”.
7.Select Loans per hour from the menu in ‘Independent Variable”.
8. Click “OK”
9. Engine Room will generate a new worksheet entitled “Regression”.
When completed, answer the following questions:
1. How would you interpret the graph
2. What conclusions can you draw from p-value and the R-squared value?

Case Study Regression Results

SUMMARY OUTPUT 8.27 60.09

100 5.1

Regression Statistics 101 5.7

Multiple R 0.8193026767 101 5.3

R Square 0.671256876 101 5.2

Adjusted R Square 0.6670422206 101 5.4

Standard Error 3.2887153692 101 6.5

Observations 80 101 5.9

101 5.8

ANOVA 102 5.8

df SS MS F Significance F 102 5.1

Regression 1 1722.5793951901 1722.5793951901 159.26732 1.56980839556793E-20 102 5.2

Residual 78 843.6206048099 10.8156487796 103 5.8

Total 79 2566.2 103 5.2

103 4.9

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% 103 4.8

Intercept 60.0865544884 3.983959925 15.0821181987 7.84476407641124E-25 52.1550977424 68.0180112345 104 5.7

X Variable 1 8.2681165172 0.6551537816 12.6201156889 1.56980839556406E-20 6.9638052344 9.5724278 104 5.4

104 5.7

104 6

Formula: y = 8.27x + 60.09 105 5.8

RESIDUAL OUTPUT 105 5.5

106 5.4

Observation Predicted Y Residuals 106 5.3

1 102.2539487261 -2.2539487261 106 5.6

2 107.2148186364 -6.2148186364 107 5.2

3 103.9075720295 -2.9075720295 107 5.8

4 103.0807603778 -2.0807603778 108 5.9

5 104.7343836812 -3.7343836812 108 5.9

6 113.8293118501 -12.8293118501 108 5.6

7 108.8684419398 -7.8684419398 108 5.5

8 108.0416302881 -7.0416302881 108 5.9

9 108.0416302881 -6.0416302881 109 6

10 102.2539487261 -0.2539487261 109 5.6

11 103.0807603778 -1.0807603778 110 6

12 108.0416302881 -5.0416302881 110 6

13 103.0807603778 -0.0807603778 110 5.7

14 100.6003254227 2.3996745773 110 6.5

15 99.7735137709 3.2264862291 110 5.4

16 107.2148186364 -3.2148186364 111 6.1

17 104.7343836812 -0.7343836812 111 5.9

18 107.2148186364 -3.2148186364 111 6.9

19 109.6952535916 -5.6952535916 111 5.9

20 108.0416302881 -3.0416302881 111 6.1

21 105.561195333 -0.561195333 111 6.3

22 104.7343836812 1.2656163188 111 6.2

23 103.9075720295 2.0924279705 112 5.7

24 106.3880069847 -0.3880069847 112 6

25 103.0807603778 3.9192396222 112 6

26 108.0416302881 -1.0416302881 113 6.1

27 108.8684419398 -0.8684419398 113 6.1

28 108.8684419398 -0.8684419398 113 5.9

29 106.3880069847 1.6119930153 114 6.2

30 105.561195333 2.438804667 114 6.4

31 108.8684419398 -0.8684419398 114 6.6

32 109.6952535916 -0.6952535916 114 6.5

33 106.3880069847 2.6119930153 114 6.4

34 109.6952535916 0.3047464084 115 6.4

35 109.6952535916 0.3047464084 115 6.5

36 107.2148186364 2.7851813636 115 6.5

37 113.8293118501 -3.8293118501 115 6.1

38 104.7343836812 5.2656163188 115 6.3

39 110.5220652433 0.4779347567 115 6.8

40 108.8684419398 2.1315580602 115 6.8

41 117.136558457 -6.136558457 115 6.9

42 108.8684419398 2.1315580602 116 7

43 110.5220652433 0.4779347567 116 6.6

44 112.1756885467 -1.1756885467 116 6.8

45 111.348876895 -0.348876895 116 6.9

46 107.2148186364 4.7851813636 116 6.4

47 109.6952535916 2.3047464084 117 6.9

48 109.6952535916 2.3047464084 117 6.6

49 110.5220652433 2.4779347567 118 6.7

50 110.5220652433 2.4779347567 118 6.5

51 108.8684419398 4.1315580602 118 6.7

52 111.348876895 2.651123105 118 6.7

53 113.0025001984 0.9974998016 118 6.4

54 114.6561235019 -0.6561235019 118 6.6

55 113.8293118501 0.1706881499 119 6.9

56 113.0025001984 0.9974998016 119 7

57 113.0025001984 1.9974998016 119 7

58 113.8293118501 1.1706881499

59 113.8293118501 1.1706881499

60 110.5220652433 4.4779347567

61 112.1756885467 2.8243114533

62 116.3097468053 -1.3097468053

63 116.3097468053 -1.3097468053

64 117.136558457 -2.136558457

65 117.9633701087 -1.9633701087

66 114.6561235019 1.3438764981

67 116.3097468053 -0.3097468053

68 117.136558457 -1.136558457

69 113.0025001984 2.9974998016

70 117.136558457 -0.136558457

71 114.6561235019 2.3438764981

72 115.4829351536 2.5170648464

73 113.8293118501 4.1706881499

74 115.4829351536 2.5170648464

75 115.4829351536 2.5170648464

76 113.0025001984 4.9974998016

77 114.6561235019 3.3438764981

78 117.136558457 1.863441543

79 117.9633701087 1.0366298913

80 117.9633701087 1.0366298913

Case Study Regression Results

Y
Predicted Y
Loans per hour (average) (mins)
Loans Processed
Loans per hour (average) (mins) Line Fit Plot

X and Moving Range

Date Chicago Loan Processing Cycle Time Average – X 30

1-Jan 39 Median – Range 5

2-Jan 25 LCL – X 14

3-Jan 26 UCL – X 45

4-Jan 45 UCL – Range 19

5-Jan 30

6-Jan 27

7-Jan 22

8-Jan 25

9-Jan 32

10-Jan 32

11-Jan 30

12-Jan 33

13-Jan 26

14-Jan 21

15-Jan 34

16-Jan 34

17-Jan 32

18-Jan 33

19-Jan 27

20-Jan 21

21-Jan 35

22-Jan 37

23-Jan 24

24-Jan 27

25-Jan 27

26-Jan 29

27-Jan 20

28-Jan 32

29-Jan 14

30-Jan 37

31-Jan 32

1-Feb 39

2-Feb 34

3-Feb 36

4-Feb 25

5-Feb 31

6-Feb 31

7-Feb 24

8-Feb 28

9-Feb 41

10-Feb 24

11-Feb 33

12-Feb 34

13-Feb 30

14-Feb 30

15-Feb 21

16-Feb 37

17-Feb 32

18-Feb 27

19-Feb 34

20-Feb 36

21-Feb 23

22-Feb 25

23-Feb 29

24-Feb 32

25-Feb 26

26-Feb 31

27-Feb 38

28-Feb 22

29-Feb 29

1-Mar 37

2-Mar 35

3-Mar 30

4-Mar 34

5-Mar 30

6-Mar 21

7-Mar 37

8-Mar 24

9-Mar 32

10-Mar 19

11-Mar 24

12-Mar 23

13-Mar 27

14-Mar 19

15-Mar 30

16-Mar 27

17-Mar 32

18-Mar 31

19-Mar 29

20-Mar 28

21-Mar 31

22-Mar 36

23-Mar 15

24-Mar 30

25-Mar 33

26-Mar 31

27-Mar 30

28-Mar 34

29-Mar 28

30-Mar 32

31-Mar 29

67% of the variation in total loans processed is explained by loans processed per hour. ** Since this is transactional data, this is considered a high r-squared value.
High R-Square value
The E-20 means there are 20 zeros before the 1.56981…so this number is effectively zero. Since this is less than 0.05 we reject the null hypothesis that m= 0. In practical terms, this indicates a strong correlation between loans per hour and total loans processed per day.
Low P-value so Strong Correlation indicated.

X and Moving Range

39 29.5384615385 45.2634615385 13.8134615385

25 29.5384615385 45.2634615385 13.8134615385

26 29.5384615385 45.2634615385 13.8134615385

45 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

27 29.5384615385 45.2634615385 13.8134615385

22 29.5384615385 45.2634615385 13.8134615385

25 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

33 29.5384615385 45.2634615385 13.8134615385

26 29.5384615385 45.2634615385 13.8134615385

21 29.5384615385 45.2634615385 13.8134615385

34 29.5384615385 45.2634615385 13.8134615385

34 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

33 29.5384615385 45.2634615385 13.8134615385

27 29.5384615385 45.2634615385 13.8134615385

21 29.5384615385 45.2634615385 13.8134615385

35 29.5384615385 45.2634615385 13.8134615385

37 29.5384615385 45.2634615385 13.8134615385

24 29.5384615385 45.2634615385 13.8134615385

27 29.5384615385 45.2634615385 13.8134615385

27 29.5384615385 45.2634615385 13.8134615385

29 29.5384615385 45.2634615385 13.8134615385

20 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

14 29.5384615385 45.2634615385 13.8134615385

37 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

39 29.5384615385 45.2634615385 13.8134615385

34 29.5384615385 45.2634615385 13.8134615385

36 29.5384615385 45.2634615385 13.8134615385

25 29.5384615385 45.2634615385 13.8134615385

31 29.5384615385 45.2634615385 13.8134615385

31 29.5384615385 45.2634615385 13.8134615385

24 29.5384615385 45.2634615385 13.8134615385

28 29.5384615385 45.2634615385 13.8134615385

41 29.5384615385 45.2634615385 13.8134615385

24 29.5384615385 45.2634615385 13.8134615385

33 29.5384615385 45.2634615385 13.8134615385

34 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

21 29.5384615385 45.2634615385 13.8134615385

37 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

27 29.5384615385 45.2634615385 13.8134615385

34 29.5384615385 45.2634615385 13.8134615385

36 29.5384615385 45.2634615385 13.8134615385

23 29.5384615385 45.2634615385 13.8134615385

25 29.5384615385 45.2634615385 13.8134615385

29 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

26 29.5384615385 45.2634615385 13.8134615385

31 29.5384615385 45.2634615385 13.8134615385

38 29.5384615385 45.2634615385 13.8134615385

22 29.5384615385 45.2634615385 13.8134615385

29 29.5384615385 45.2634615385 13.8134615385

37 29.5384615385 45.2634615385 13.8134615385

35 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

34 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

21 29.5384615385 45.2634615385 13.8134615385

37 29.5384615385 45.2634615385 13.8134615385

24 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

19 29.5384615385 45.2634615385 13.8134615385

24 29.5384615385 45.2634615385 13.8134615385

23 29.5384615385 45.2634615385 13.8134615385

27 29.5384615385 45.2634615385 13.8134615385

19 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

27 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

31 29.5384615385 45.2634615385 13.8134615385

29 29.5384615385 45.2634615385 13.8134615385

28 29.5384615385 45.2634615385 13.8134615385

31 29.5384615385 45.2634615385 13.8134615385

36 29.5384615385 45.2634615385 13.8134615385

15 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

33 29.5384615385 45.2634615385 13.8134615385

31 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

34 29.5384615385 45.2634615385 13.8134615385

28 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

29 29.5384615385 45.2634615385 13.8134615385

Data1
Average
UCL
LCL
Date
Chicago Loan Processing Cycle Time
X Chart

XMRData-4

37987 5 19.325

14 5 19.325

1 5 19.325

19 5 19.325

15 5 19.325

3 5 19.325

5 5 19.325

3 5 19.325

7 5 19.325

0 5 19.325

2 5 19.325

3 5 19.325

7 5 19.325

5 5 19.325

13 5 19.325

0 5 19.325

2 5 19.325

1 5 19.325

6 5 19.325

6 5 19.325

14 5 19.325

2 5 19.325

13 5 19.325

3 5 19.325

0 5 19.325

2 5 19.325

9 5 19.325

12 5 19.325

18 5 19.325

23 5 19.325

5 5 19.325

7 5 19.325

5 5 19.325

2 5 19.325

11 5 19.325

6 5 19.325

0 5 19.325

7 5 19.325

4 5 19.325

13 5 19.325

17 5 19.325

9 5 19.325

1 5 19.325

4 5 19.325

0 5 19.325

9 5 19.325

16 5 19.325

5 5 19.325

5 5 19.325

7 5 19.325

2 5 19.325

13 5 19.325

2 5 19.325

4 5 19.325

3 5 19.325

6 5 19.325

5 5 19.325

7 5 19.325

16 5 19.325

7 5 19.325

8 5 19.325

2 5 19.325

5 5 19.325

4 5 19.325

4 5 19.325

9 5 19.325

16 5 19.325

13 5 19.325

8 5 19.325

13 5 19.325

5 5 19.325

1 5 19.325

4 5 19.325

8 5 19.325

11 5 19.325

3 5 19.325

5 5 19.325

1 5 19.325

2 5 19.325

1 5 19.325

3 5 19.325

5 5 19.325

21 5 19.325

15 5 19.325

3 5 19.325

2 5 19.325

1 5 19.325

4 5 19.325

6 5 19.325

4 5 19.325

3 5 19.325

Range
Average
UCL(R)
Date
Range
Range Chart

XMRData-3

Date Chicago Loan Processing Cycle Time Average Range R-Median UCL – Range LCL – X UCL – X

1-Jan 39 29.5384615385 5 19.325 13.8134615385 45.2634615385

2-Jan 25 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

3-Jan 26 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

4-Jan 45 29.5384615385 19 5 19.325 13.8134615385 45.2634615385

5-Jan 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

6-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

7-Jan 22 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

8-Jan 25 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

9-Jan 32 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

10-Jan 32 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

11-Jan 30 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

12-Jan 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

13-Jan 26 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

14-Jan 21 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

15-Jan 34 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

16-Jan 34 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

17-Jan 32 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

18-Jan 33 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Jan 27 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

20-Jan 21 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

21-Jan 35 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

22-Jan 37 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Jan 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

24-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Jan 27 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

26-Jan 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Jan 20 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

28-Jan 32 29.5384615385 12 5 19.325 13.8134615385 45.2634615385

29-Jan 14 29.5384615385 18 5 19.325 13.8134615385 45.2634615385

30-Jan 37 29.5384615385 23 5 19.325 13.8134615385 45.2634615385

31-Jan 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

1-Feb 39 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

2-Feb 34 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

3-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

4-Feb 25 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

5-Feb 31 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

6-Feb 31 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

7-Feb 24 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

8-Feb 28 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

9-Feb 41 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

10-Feb 24 29.5384615385 17 5 19.325 13.8134615385 45.2634615385

11-Feb 33 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

12-Feb 34 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Feb 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Feb 30 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

15-Feb 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

16-Feb 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

17-Feb 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Feb 27 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

19-Feb 34 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

20-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

21-Feb 23 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

22-Feb 25 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Feb 29 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

24-Feb 32 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Feb 26 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

26-Feb 31 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

27-Feb 38 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

28-Feb 22 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

29-Feb 29 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

1-Mar 37 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

2-Mar 35 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

3-Mar 30 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

4-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

5-Mar 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

6-Mar 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

7-Mar 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

8-Mar 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

9-Mar 32 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

10-Mar 19 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

11-Mar 24 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

12-Mar 23 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Mar 27 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Mar 19 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

15-Mar 30 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

16-Mar 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

17-Mar 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Mar 31 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Mar 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

20-Mar 28 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

21-Mar 31 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

22-Mar 36 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

23-Mar 15 29.5384615385 21 5 19.325 13.8134615385 45.2634615385

24-Mar 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

25-Mar 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

26-Mar 31 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Mar 30 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

28-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

29-Mar 28 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

30-Mar 32 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

31-Mar 29 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

XMRData-2

Date Chicago Loan Processing Cycle Time Average Range R-Median UCL – Range LCL – X UCL – X

1-Jan 39 29.5384615385 5 19.325 13.8134615385 45.2634615385

2-Jan 25 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

3-Jan 26 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

4-Jan 45 29.5384615385 19 5 19.325 13.8134615385 45.2634615385

5-Jan 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

6-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

7-Jan 22 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

8-Jan 25 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

9-Jan 32 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

10-Jan 32 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

11-Jan 30 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

12-Jan 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

13-Jan 26 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

14-Jan 21 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

15-Jan 34 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

16-Jan 34 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

17-Jan 32 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

18-Jan 33 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Jan 27 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

20-Jan 21 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

21-Jan 35 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

22-Jan 37 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Jan 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

24-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Jan 27 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

26-Jan 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Jan 20 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

28-Jan 32 29.5384615385 12 5 19.325 13.8134615385 45.2634615385

29-Jan 14 29.5384615385 18 5 19.325 13.8134615385 45.2634615385

30-Jan 37 29.5384615385 23 5 19.325 13.8134615385 45.2634615385

31-Jan 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

1-Feb 39 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

2-Feb 34 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

3-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

4-Feb 25 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

5-Feb 31 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

6-Feb 31 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

7-Feb 24 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

8-Feb 28 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

9-Feb 41 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

10-Feb 24 29.5384615385 17 5 19.325 13.8134615385 45.2634615385

11-Feb 33 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

12-Feb 34 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Feb 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Feb 30 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

15-Feb 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

16-Feb 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

17-Feb 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Feb 27 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

19-Feb 34 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

20-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

21-Feb 23 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

22-Feb 25 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Feb 29 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

24-Feb 32 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Feb 26 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

26-Feb 31 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

27-Feb 38 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

28-Feb 22 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

29-Feb 29 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

1-Mar 37 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

2-Mar 35 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

3-Mar 30 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

4-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

5-Mar 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

6-Mar 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

7-Mar 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

8-Mar 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

9-Mar 32 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

10-Mar 19 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

11-Mar 24 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

12-Mar 23 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Mar 27 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Mar 19 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

15-Mar 30 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

16-Mar 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

17-Mar 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Mar 31 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Mar 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

20-Mar 28 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

21-Mar 31 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

22-Mar 36 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

23-Mar 15 29.5384615385 21 5 19.325 13.8134615385 45.2634615385

24-Mar 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

25-Mar 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

26-Mar 31 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Mar 30 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

28-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

29-Mar 28 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

30-Mar 32 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

31-Mar 29 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

XMRData-1

Date Chicago Loan Processing Cycle Time Average Range R-Mean UCL – Range LCL – X UCL – X

1-Jan 39 29.5384615385 6.6222222222 21.6414222222 11.9233504274 47.1535726496

2-Jan 25 29.5384615385 14 6.6222222222 21.6414222222 11.9233504274 47.1535726496

3-Jan 26 29.5384615385 1 6.6222222222 21.6414222222 11.9233504274 47.1535726496

4-Jan 45 29.5384615385 19 6.6222222222 21.6414222222 11.9233504274 47.1535726496

5-Jan 30 29.5384615385 15 6.6222222222 21.6414222222 11.9233504274 47.1535726496

6-Jan 27 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

7-Jan 22 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

8-Jan 25 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

9-Jan 32 29.5384615385 7 6.6222222222 21.6414222222 11.9233504274 47.1535726496

10-Jan 32 29.5384615385 0 6.6222222222 21.6414222222 11.9233504274 47.1535726496

11-Jan 30 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

12-Jan 33 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

13-Jan 26 29.5384615385 7 6.6222222222 21.6414222222 11.9233504274 47.1535726496

14-Jan 21 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

15-Jan 34 29.5384615385 13 6.6222222222 21.6414222222 11.9233504274 47.1535726496

16-Jan 34 29.5384615385 0 6.6222222222 21.6414222222 11.9233504274 47.1535726496

17-Jan 32 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

18-Jan 33 29.5384615385 1 6.6222222222 21.6414222222 11.9233504274 47.1535726496

19-Jan 27 29.5384615385 6 6.6222222222 21.6414222222 11.9233504274 47.1535726496

20-Jan 21 29.5384615385 6 6.6222222222 21.6414222222 11.9233504274 47.1535726496

21-Jan 35 29.5384615385 14 6.6222222222 21.6414222222 11.9233504274 47.1535726496

22-Jan 37 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

23-Jan 24 29.5384615385 13 6.6222222222 21.6414222222 11.9233504274 47.1535726496

24-Jan 27 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

25-Jan 27 29.5384615385 0 6.6222222222 21.6414222222 11.9233504274 47.1535726496

26-Jan 29 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

27-Jan 20 29.5384615385 9 6.6222222222 21.6414222222 11.9233504274 47.1535726496

28-Jan 32 29.5384615385 12 6.6222222222 21.6414222222 11.9233504274 47.1535726496

29-Jan 14 29.5384615385 18 6.6222222222 21.6414222222 11.9233504274 47.1535726496

30-Jan 37 29.5384615385 23 6.6222222222 21.6414222222 11.9233504274 47.1535726496

31-Jan 32 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

1-Feb 39 29.5384615385 7 6.6222222222 21.6414222222 11.9233504274 47.1535726496

2-Feb 34 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

3-Feb 36 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

4-Feb 25 29.5384615385 11 6.6222222222 21.6414222222 11.9233504274 47.1535726496

5-Feb 31 29.5384615385 6 6.6222222222 21.6414222222 11.9233504274 47.1535726496

6-Feb 31 29.5384615385 0 6.6222222222 21.6414222222 11.9233504274 47.1535726496

7-Feb 24 29.5384615385 7 6.6222222222 21.6414222222 11.9233504274 47.1535726496

8-Feb 28 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

9-Feb 41 29.5384615385 13 6.6222222222 21.6414222222 11.9233504274 47.1535726496

10-Feb 24 29.5384615385 17 6.6222222222 21.6414222222 11.9233504274 47.1535726496

11-Feb 33 29.5384615385 9 6.6222222222 21.6414222222 11.9233504274 47.1535726496

12-Feb 34 29.5384615385 1 6.6222222222 21.6414222222 11.9233504274 47.1535726496

13-Feb 30 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

14-Feb 30 29.5384615385 0 6.6222222222 21.6414222222 11.9233504274 47.1535726496

15-Feb 21 29.5384615385 9 6.6222222222 21.6414222222 11.9233504274 47.1535726496

16-Feb 37 29.5384615385 16 6.6222222222 21.6414222222 11.9233504274 47.1535726496

17-Feb 32 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

18-Feb 27 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

19-Feb 34 29.5384615385 7 6.6222222222 21.6414222222 11.9233504274 47.1535726496

20-Feb 36 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

21-Feb 23 29.5384615385 13 6.6222222222 21.6414222222 11.9233504274 47.1535726496

22-Feb 25 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

23-Feb 29 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

24-Feb 32 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

25-Feb 26 29.5384615385 6 6.6222222222 21.6414222222 11.9233504274 47.1535726496

26-Feb 31 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

27-Feb 38 29.5384615385 7 6.6222222222 21.6414222222 11.9233504274 47.1535726496

28-Feb 22 29.5384615385 16 6.6222222222 21.6414222222 11.9233504274 47.1535726496

29-Feb 29 29.5384615385 7 6.6222222222 21.6414222222 11.9233504274 47.1535726496

1-Mar 37 29.5384615385 8 6.6222222222 21.6414222222 11.9233504274 47.1535726496

2-Mar 35 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

3-Mar 30 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

4-Mar 34 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

5-Mar 30 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

6-Mar 21 29.5384615385 9 6.6222222222 21.6414222222 11.9233504274 47.1535726496

7-Mar 37 29.5384615385 16 6.6222222222 21.6414222222 11.9233504274 47.1535726496

8-Mar 24 29.5384615385 13 6.6222222222 21.6414222222 11.9233504274 47.1535726496

9-Mar 32 29.5384615385 8 6.6222222222 21.6414222222 11.9233504274 47.1535726496

10-Mar 19 29.5384615385 13 6.6222222222 21.6414222222 11.9233504274 47.1535726496

11-Mar 24 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

12-Mar 23 29.5384615385 1 6.6222222222 21.6414222222 11.9233504274 47.1535726496

13-Mar 27 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

14-Mar 19 29.5384615385 8 6.6222222222 21.6414222222 11.9233504274 47.1535726496

15-Mar 30 29.5384615385 11 6.6222222222 21.6414222222 11.9233504274 47.1535726496

16-Mar 27 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

17-Mar 32 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

18-Mar 31 29.5384615385 1 6.6222222222 21.6414222222 11.9233504274 47.1535726496

19-Mar 29 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

20-Mar 28 29.5384615385 1 6.6222222222 21.6414222222 11.9233504274 47.1535726496

21-Mar 31 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

22-Mar 36 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

23-Mar 15 29.5384615385 21 6.6222222222 21.6414222222 11.9233504274 47.1535726496

24-Mar 30 29.5384615385 15 6.6222222222 21.6414222222 11.9233504274 47.1535726496

25-Mar 33 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

26-Mar 31 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

27-Mar 30 29.5384615385 1 6.6222222222 21.6414222222 11.9233504274 47.1535726496

28-Mar 34 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

29-Mar 28 29.5384615385 6 6.6222222222 21.6414222222 11.9233504274 47.1535726496

30-Mar 32 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

31-Mar 29 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

XMRData

Date Chicago Loan Processing Cycle Time Average Range R-Median UCL – Range LCL – X UCL – X

1-Jan 39 29.5384615385 5 19.325 13.8134615385 45.2634615385

2-Jan 25 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

3-Jan 26 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

4-Jan 45 29.5384615385 19 5 19.325 13.8134615385 45.2634615385

5-Jan 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

6-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

7-Jan 22 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

8-Jan 25 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

9-Jan 32 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

10-Jan 32 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

11-Jan 30 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

12-Jan 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

13-Jan 26 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

14-Jan 21 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

15-Jan 34 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

16-Jan 34 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

17-Jan 32 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

18-Jan 33 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Jan 27 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

20-Jan 21 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

21-Jan 35 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

22-Jan 37 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Jan 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

24-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Jan 27 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

26-Jan 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Jan 20 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

28-Jan 32 29.5384615385 12 5 19.325 13.8134615385 45.2634615385

29-Jan 14 29.5384615385 18 5 19.325 13.8134615385 45.2634615385

30-Jan 37 29.5384615385 23 5 19.325 13.8134615385 45.2634615385

31-Jan 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

1-Feb 39 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

2-Feb 34 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

3-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

4-Feb 25 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

5-Feb 31 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

6-Feb 31 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

7-Feb 24 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

8-Feb 28 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

9-Feb 41 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

10-Feb 24 29.5384615385 17 5 19.325 13.8134615385 45.2634615385

11-Feb 33 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

12-Feb 34 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Feb 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Feb 30 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

15-Feb 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

16-Feb 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

17-Feb 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Feb 27 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

19-Feb 34 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

20-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

21-Feb 23 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

22-Feb 25 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Feb 29 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

24-Feb 32 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Feb 26 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

26-Feb 31 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

27-Feb 38 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

28-Feb 22 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

29-Feb 29 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

1-Mar 37 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

2-Mar 35 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

3-Mar 30 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

4-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

5-Mar 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

6-Mar 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

7-Mar 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

8-Mar 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

9-Mar 32 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

10-Mar 19 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

11-Mar 24 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

12-Mar 23 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Mar 27 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Mar 19 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

15-Mar 30 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

16-Mar 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

17-Mar 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Mar 31 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Mar 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

20-Mar 28 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

21-Mar 31 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

22-Mar 36 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

23-Mar 15 29.5384615385 21 5 19.325 13.8134615385 45.2634615385

24-Mar 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

25-Mar 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

26-Mar 31 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Mar 30 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

28-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

29-Mar 28 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

30-Mar 32 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

31-Mar 29 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

XBSData

Date Chicago Loan Processing Cycle Time Average Range R-Median UCL – Range LCL – X UCL – X

1-Jan 39 29.5384615385 5 19.325 13.8134615385 45.2634615385

2-Jan 25 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

3-Jan 26 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

4-Jan 45 29.5384615385 19 5 19.325 13.8134615385 45.2634615385

5-Jan 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

6-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

7-Jan 22 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

8-Jan 25 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

9-Jan 32 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

10-Jan 32 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

11-Jan 30 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

12-Jan 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

13-Jan 26 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

14-Jan 21 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

15-Jan 34 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

16-Jan 34 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

17-Jan 32 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

18-Jan 33 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Jan 27 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

20-Jan 21 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

21-Jan 35 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

22-Jan 37 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Jan 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

24-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Jan 27 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

26-Jan 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Jan 20 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

28-Jan 32 29.5384615385 12 5 19.325 13.8134615385 45.2634615385

29-Jan 14 29.5384615385 18 5 19.325 13.8134615385 45.2634615385

30-Jan 37 29.5384615385 23 5 19.325 13.8134615385 45.2634615385

31-Jan 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

1-Feb 39 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

2-Feb 34 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

3-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

4-Feb 25 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

5-Feb 31 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

6-Feb 31 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

7-Feb 24 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

8-Feb 28 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

9-Feb 41 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

10-Feb 24 29.5384615385 17 5 19.325 13.8134615385 45.2634615385

11-Feb 33 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

12-Feb 34 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Feb 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Feb 30 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

15-Feb 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

16-Feb 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

17-Feb 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Feb 27 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

19-Feb 34 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

20-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

21-Feb 23 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

22-Feb 25 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Feb 29 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

24-Feb 32 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Feb 26 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

26-Feb 31 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

27-Feb 38 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

28-Feb 22 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

29-Feb 29 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

1-Mar 37 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

2-Mar 35 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

3-Mar 30 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

4-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

5-Mar 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

6-Mar 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

7-Mar 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

8-Mar 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

9-Mar 32 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

10-Mar 19 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

11-Mar 24 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

12-Mar 23 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Mar 27 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Mar 19 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

15-Mar 30 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

16-Mar 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

17-Mar 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Mar 31 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Mar 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

20-Mar 28 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

21-Mar 31 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

22-Mar 36 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

23-Mar 15 29.5384615385 21 5 19.325 13.8134615385 45.2634615385

24-Mar 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

25-Mar 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

26-Mar 31 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Mar 30 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

28-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

29-Mar 28 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

30-Mar 32 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

31-Mar 29 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

HistData

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 Average StdDev X Bar Bar S Bar LCL – S UCL – S LCL – X UCL – X

1 37987 37988 37989 37990 37991 37992 37993 37994 37995 37996 37997 37998 37999 38000 38001 38002 38003 38004 38005 38006 38007 38008 38009 38010 38011 38012 38013 38014 38015 38016 38017 38018 38019 38020 38021 38022 38023 38024 38025 38026 38027 38028 38029 38030 38031 38032 38033 38034 38035 38036 38037 38038 38039 38040 38041 38042 38043 38044 38045 38046 38047 38048 38049 38050 38051 38052 38053 38054 38055 38056 38057 38058 38059 38060 38061 38062 38063 38064 38065 38066 38067 38068 38069 38070 38071 38072 38073 38074 38075 38076 38077 38032 26.4133804475 19030.7692307692 16.0598635958 -127.8720872474 159.9918144389 19014.8581890309 19046.6802725076

2 39 25 26 45 30 27 22 25 32 32 30 33 26 21 34 34 32 33 27 21 35 37 24 27 27 29 20 32 14 37 32 39 34 36 25 31 31 24 28 41 24 33 34 30 30 21 37 32 27 34 36 23 25 29 32 26 31 38 22 29 37 35 30 34 30 21 37 24 32 19 24 23 27 19 30 27 32 31 29 28 31 36 15 30 33 31 30 34 28 32 29 29.5384615385 5.706346744 19030.7692307692 16.0598635958 -127.8720872474 159.9918144389 19014.8581890309 19046.6802725076

HistData-1

Observation Max 46 Bin Frequency Cum Count Bins

1 45 Min 12 12 1 0.1% 1423 10

2 20 Interval 3.7777777778 15.7777777778 4 0.0035137034

3 24 19.5555555556 28 0.0231904427

4 31 23.3333333333 124 0.1103302881

5 24 27.1111111111 303 0.3232607168

6 29 30.8888888889 283 0.5221363317

7 28 34.6666666667 392 0.7976106817

8 34 38.4444444444 213 0.9472944483

9 33 42.2222222222 57 0.9873506676

10 25 46 18 1

11 25 0 0 0

12 25 0 0 0

13 24 0 0 0

14 30 0 0 0

15 30 0 0 0

16 32 0 0 0

17 31 0 0 0

18 27 0 0 0

19 21 0 0 0

20 36 0 0 0

21 28 0 0 0

22 35 0 0 0

23 35 0 0 0

24 26 0 0 0

25 42 0 0 0

26 35 0 0 0

27 29 0 0 0

28 22 0 0 0

29 29 0 0 0

30 26 0 0 0

31 32

32 27

33 28

34 28

35 26

36 30

37 32

38 36

39 28

40 39

41 22

42 30

43 32

44 24

45 31

46 31

47 45

48 36

49 25

50 37

51 21

52 31

53 28

54 22

55 43

56 33

57 32

58 38

59 26

60 28

61 26

62 26

63 27

64 40

65 24

66 29

67 27

68 37

69 20

70 37

71 31

72 30

73 39

74 34

75 33

76 43

77 31

78 36

79 29

80 30

81 37

82 31

83 25

84 33

85 33

86 25

87 25

88 29

89 37

90 28

91 38

92 39

93 21

94 28

95 36

96 30

97 32

98 35

99 21

100 18

101 29

102 26

103 27

104 30

105 32

106 35

107 25

108 25

109 28

110 24

111 33

112 28

113 30

114 26

115 36

116 33

117 27

118 28

119 24

120 27

121 40

122 25

123 29

124 33

125 32

126 24

127 22

128 26

129 37

130 28

131 29

132 35

133 26

134 33

135 23

136 27

137 34

138 29

139 25

140 36

141 35

142 31

143 32

144 36

145 32

146 29

147 39

148 32

149 33

150 30

151 20

152 36

153 31

154 34

155 33

156 32

157 24

158 24

159 26

160 37

161 33

162 27

163 22

164 30

165 27

166 37

167 26

168 34

169 30

170 32

171 36

172 30

173 33

174 35

175 24

176 31

177 27

178 27

179 26

180 32

181 35

182 25

183 30

184 14

185 36

186 34

187 30

188 28

189 35

190 31

191 32

192 28

193 24

194 40

195 31

196 24

197 30

198 33

199 28

200 21

201 31

202 38

203 34

204 26

205 27

206 34

207 28

208 18

209 26

210 28

211 34

212 28

213 34

214 24

215 32

216 34

217 30

218 33

219 37

220 36

221 30

222 33

223 32

224 35

225 33

226 30

227 31

228 22

229 29

230 33

231 26

232 23

233 32

234 28

235 29

236 28

237 32

238 41

239 35

240 29

241 34

242 26

243 28

244 35

245 32

246 17

247 33

248 35

249 37

250 25

251 33

252 33

253 26

254 36

255 35

256 27

257 26

258 30

259 25

260 28

261 32

262 36

263 33

264 31

265 34

266 24

267 28

268 29

269 38

270 32

271 29

272 31

273 25

274 30

275 37

276 34

277 25

278 19

279 29

280 32

281 22

282 36

283 31

284 24

285 37

286 36

287 31

288 27

289 26

290 21

291 41

292 31

293 24

294 30

295 24

296 19

297 37

298 41

299 21

300 21

301 32

302 19

303 20

304 27

305 34

306 37

307 36

308 45

309 31

310 33

311 30

312 29

313 36

314 18

315 23

316 37

317 36

318 36

319 30

320 29

321 33

322 39

323 27

324 27

325 28

326 29

327 35

328 24

329 26

330 32

331 31

332 31

333 26

334 18

335 29

336 37

337 28

338 22

339 38

340 26

341 31

342 31

343 41

344 27

345 35

346 27

347 38

348 32

349 33

350 30

351 34

352 32

353 38

354 27

355 29

356 31

357 14

358 33

359 30

360 31

361 35

362 27

363 31

364 34

365 33

366 27

367 37

368 37

369 21

370 22

371 32

372 20

373 38

374 28

375 31

376 22

377 29

378 33

379 36

380 26

381 17

382 25

383 29

384 41

385 39

386 38

387 36

388 33

389 22

390 32

391 34

392 25

393 29

394 23

395 30

396 26

397 30

398 29

399 32

400 27

401 26

402 35

403 34

404 30

405 29

406 41

407 26

408 37

409 25

410 33

411 43

412 29

413 37

414 42

415 29

416 28

417 30

418 39

419 34

420 28

421 24

422 34

423 29

424 35

425 27

426 42

427 37

428 42

429 31

430 29

431 37

432 30

433 30

434 18

435 22

436 24

437 40

438 35

439 32

440 38

441 32

442 36

443 34

444 19

445 32

446 31

447 30

448 29

449 36

450 33

451 36

452 36

453 25

454 33

455 24

456 32

457 27

458 34

459 27

460 28

461 27

462 40

463 26

464 30

465 26

466 31

467 28

468 24

469 35

470 31

471 25

472 29

473 38

474 31

475 23

476 30

477 40

478 33

479 30

480 27

481 30

482 31

483 30

484 30

485 30

486 25

487 36

488 32

489 32

490 26

491 34

492 31

493 28

494 31

495 26

496 33

497 37

498 35

499 28

500 16

501 31

502 32

503 26

504 28

505 25

506 34

507 30

508 32

509 35

510 31

511 33

512 22

513 31

514 38

515 29

516 33

517 26

518 43

519 36

520 29

521 33

522 27

523 31

524 16

525 38

526 36

527 27

528 25

529 34

530 31

531 28

532 31

533 21

534 27

535 35

536 33

537 21

538 36

539 37

540 37

541 43

542 29

543 36

544 34

545 33

546 26

547 26

548 29

549 31

550 32

551 24

552 33

553 24

554 36

555 31

556 38

557 30

558 19

559 34

560 38

561 38

562 24

563 39

564 27

565 30

566 35

567 30

568 31

569 32

570 23

571 27

572 32

573 30

574 34

575 27

576 20

577 37

578 31

579 35

580 35

581 32

582 29

583 34

584 36

585 23

586 26

587 33

588 31

589 20

590 22

591 37

592 25

593 25

594 26

595 38

596 37

597 24

598 26

599 32

600 25

601 25

602 30

603 28

604 32

605 29

606 18

607 30

608 21

609 32

610 32

611 32

612 37

613 37

614 32

615 23

616 26

617 41

618 33

619 26

620 29

621 30

622 24

623 22

624 30

625 40

626 24

627 35

628 23

629 28

630 34

631 29

632 27

633 27

634 30

635 23

636 29

637 33

638 26

639 37

640 30

641 34

642 29

643 31

644 25

645 24

646 28

647 36

648 29

649 28

650 31

651 20

652 31

653 32

654 32

655 25

656 30

657 34

658 30

659 34

660 21

661 27

662 32

663 30

664 26

665 29

666 32

667 24

668 27

669 25

670 32

671 30

672 35

673 27

674 41

675 22

676 35

677 26

678 27

679 21

680 33

681 33

682 20

683 29

684 28

685 31

686 32

687 24

688 21

689 37

690 36

691 30

692 30

693 35

694 38

695 33

696 40

697 30

698 35

699 20

700 29

701 35

702 35

703 35

704 26

705 32

706 29

707 28

708 18

709 26

710 21

711 30

712 33

713 32

714 29

715 31

716 26

717 36

718 37

719 40

720 35

721 28

722 29

723 32

724 30

725 27

726 27

727 29

728 24

729 34

730 32

731 24

732 22

733 32

734 30

735 25

736 31

737 33

738 39

739 30

740 44

741 23

742 31

743 23

744 32

745 28

746 40

747 12

748 30

749 25

750 27

751 28

752 29

753 27

754 25

755 30

756 37

757 23

758 29

759 30

760 30

761 37

762 30

763 28

764 32

765 25

766 35

767 33

768 31

769 34

770 31

771 23

772 32

773 29

774 31

775 28

776 23

777 25

778 31

779 28

780 27

781 24

782 38

783 38

784 29

785 41

786 37

787 38

788 20

789 33

790 24

791 27

792 29

793 25

794 31

795 23

796 27

797 30

798 34

799 30

800 44

801 24

802 35

803 33

804 29

805 32

806 29

807 35

808 33

809 34

810 29

811 40

812 24

813 40

814 30

815 25

816 29

817 27

818 24

819 33

820 27

821 24

822 31

823 29

824 31

825 34

826 35

827 24

828 30

829 26

830 33

831 36

832 28

833 27

834 30

835 36

836 25

837 37

838 39

839 39

840 32

841 40

842 21

843 24

844 24

845 30

846 36

847 29

848 36

849 29

850 26

851 32

852 34

853 37

854 30

855 27

856 31

857 26

858 31

859 28

860 31

861 40

862 32

863 26

864 31

865 29

866 33

867 31

868 33

869 25

870 28

871 28

872 29

873 30

874 31

875 25

876 26

877 36

878 22

879 29

880 39

881 45

882 29

883 38

884 26

885 27

886 33

887 30

888 29

889 23

890 31

891 37

892 27

893 26

894 40

895 28

896 40

897 24

898 34

899 31

900 29

901 21

902 21

903 29

904 29

905 33

906 34

907 35

908 20

909 34

910 27

911 25

912 27

913 32

914 26

915 19

916 15

917 32

918 26

919 25

920 25

921 26

922 30

923 31

924 32

925 23

926 27

927 23

928 23

929 33

930 33

931 33

932 32

933 28

934 19

935 40

936 30

937 31

938 25

939 31

940 33

941 43

942 36

943 34

944 29

945 34

946 27

947 30

948 29

949 31

950 31

951 16

952 26

953 27

954 31

955 18

956 23

957 27

958 35

959 27

960 33

961 32

962 36

963 29

964 32

965 31

966 27

967 44

968 27

969 31

970 37

971 35

972 25

973 33

974 29

975 34

976 32

977 32

978 27

979 29

980 23

981 30

982 20

983 28

984 34

985 31

986 33

987 28

988 35

989 31

990 36

991 24

992 35

993 24

994 34

995 33

996 34

997 25

998 32

999 27

1000 21

1001 34

1002 32

1003 35

1004 21

1005 23

1006 32

1007 30

1008 35

1009 24

1010 21

1011 32

1012 38

1013 32

1014 32

1015 36

1016 39

1017 25

1018 29

1019 28

1020 23

1021 35

1022 32

1023 21

1024 27

1025 28

1026 23

1027 37

1028 30

1029 29

1030 24

1031 32

1032 24

1033 28

1034 34

1035 23

1036 35

1037 22

1038 24

1039 33

1040 28

1041 17

1042 36

1043 26

1044 38

1045 26

1046 33

1047 29

1048 25

1049 33

1050 34

1051 28

1052 29

1053 33

1054 23

1055 32

1056 35

1057 25

1058 29

1059 25

1060 31

1061 26

1062 35

1063 35

1064 27

1065 34

1066 29

1067 31

1068 36

1069 34

1070 37

1071 37

1072 25

1073 32

1074 24

1075 35

1076 32

1077 25

1078 33

1079 34

1080 32

1081 28

1082 37

1083 24

1084 36

1085 31

1086 30

1087 37

1088 22

1089 20

1090 19

1091 29

1092 32

1093 22

1094 32

1095 41

1096 35

1097 37

1098 31

1099 32

1100 36

1101 36

1102 23

1103 37

1104 34

1105 31

1106 44

1107 30

1108 30

1109 32

1110 28

1111 20

1112 35

1113 24

1114 28

1115 33

1116 27

1117 26

1118 36

1119 32

1120 35

1121 28

1122 36

1123 31

1124 26

1125 27

1126 32

1127 31

1128 29

1129 34

1130 37

1131 24

1132 29

1133 37

1134 20

1135 33

1136 33

1137 22

1138 24

1139 22

1140 31

1141 25

1142 30

1143 22

1144 34

1145 37

1146 20

1147 23

1148 39

1149 19

1150 20

1151 25

1152 21

1153 27

1154 33

1155 31

1156 21

1157 34

1158 25

1159 35

1160 24

1161 23

1162 28

1163 31

1164 27

1165 29

1166 29

1167 25

1168 28

1169 29

1170 24

1171 19

1172 29

1173 42

1174 32

1175 35

1176 33

1177 32

1178 30

1179 18

1180 31

1181 20

1182 36

1183 21

1184 25

1185 39

1186 25

1187 30

1188 27

1189 29

1190 35

1191 34

1192 29

1193 32

1194 32

1195 43

1196 29

1197 40

1198 32

1199 25

1200 27

1201 33

1202 26

1203 27

1204 26

1205 24

1206 31

1207 27

1208 20

1209 27

1210 33

1211 25

1212 31

1213 30

1214 32

1215 36

1216 27

1217 32

1218 32

1219 32

1220 36

1221 39

1222 34

1223 24

1224 33

1225 30

1226 35

1227 34

1228 30

1229 32

1230 42

1231 24

1232 34

1233 34

1234 26

1235 28

1236 35

1237 30

1238 31

1239 38

1240 22

1241 32

1242 32

1243 22

1244 23

1245 35

1246 35

1247 31

1248 33

1249 36

1250 37

1251 24

1252 23

1253 33

1254 21

1255 34

1256 32

1257 28

1258 31

1259 29

1260 34

1261 17

1262 34

1263 22

1264 21

1265 34

1266 23

1267 41

1268 31

1269 31

1270 28

1271 26

1272 34

1273 20

1274 24

1275 21

1276 32

1277 30

1278 29

1279 27

1280 36

1281 25

1282 33

1283 23

1284 34

1285 33

1286 28

1287 17

1288 27

1289 29

1290 29

1291 32

1292 43

1293 30

1294 25

1295 29

1296 27

1297 28

1298 31

1299 31

1300 40

1301 28

1302 26

1303 33

1304 33

1305 33

1306 22

1307 40

1308 36

1309 27

1310 30

1311 40

1312 22

1313 26

1314 26

1315 29

1316 36

1317 22

1318 38

1319 24

1320 36

1321 29

1322 29

1323 35

1324 33

1325 31

1326 26

1327 27

1328 25

1329 26

1330 30

1331 32

1332 34

1333 32

1334 29

1335 42

1336 33

1337 25

1338 27

1339 26

1340 26

1341 15

1342 46

1343 20

1344 40

1345 26

1346 33

1347 22

1348 28

1349 25

1350 34

1351 34

1352 31

1353 25

1354 37

1355 23

1356 38

1357 23

1358 31

1359 32

1360 38

1361 28

1362 35

1363 24

1364 25

1365 29

1366 34

1367 33

1368 33

1369 38

1370 23

1371 30

1372 28

1373 33

1374 21

1375 35

1376 33

1377 35

1378 25

1379 31

1380 28

1381 24

1382 35

1383 30

1384 26

1385 30

1386 30

1387 30

1388 33

1389 24

1390 39

1391 31

1392 27

1393 22

1394 30

1395 23

1396 25

1397 28

1398 32

1399 25

1400 31

1401 34

1402 37

1403 21

1404 31

1405 36

1406 34

1407 25

1408 33

1409 34

1410 26

1411 35

1412 27

1413 24

1414 25

1415 26

1416 28

1417 31

1418 29

1419 33

1420 43

1421 18

1422 27

1423 23

Observation Max 46 Bin Frequency Cum Count Bins

1 45 Min 12 12 1 0.1% 1423 10

2 20 Interval 3.7777777778 15.7777777778 4 0.0035137034

3 24 19.5555555556 28 0.0231904427

4 31 23.3333333333 124 0.1103302881

5 24 27.1111111111 303 0.3232607168

6 29 30.8888888889 283 0.5221363317

7 28 34.6666666667 392 0.7976106817

8 34 38.4444444444 213 0.9472944483

9 33 42.2222222222 57 0.9873506676

10 25 46 18 1

11 25 0 0 0

12 25 0 0 0

13 24 0 0 0

14 30 0 0 0

15 30 0 0 0

16 32 0 0 0

17 31 0 0 0

18 27 0 0 0

19 21 0 0 0

20 36 0 0 0

21 28 0 0 0

22 35 0 0 0

23 35 0 0 0

24 26 0 0 0

25 42 0 0 0

26 35 0 0 0

27 29 0 0 0

28 22 0 0 0

29 29 0 0 0

30 26 0 0 0

31 32

32 27

33 28

34 28

35 26

36 30

37 32

38 36

39 28

40 39

41 22

42 30

43 32

44 24

45 31

46 31

47 45

48 36

49 25

50 37

51 21

52 31

53 28

54 22

55 43

56 33

57 32

58 38

59 26

60 28

61 26

62 26

63 27

64 40

65 24

66 29

67 27

68 37

69 20

70 37

71 31

72 30

73 39

74 34

75 33

76 43

77 31

78 36

79 29

80 30

81 37

82 31

83 25

84 33

85 33

86 25

87 25

88 29

89 37

90 28

91 38

92 39

93 21

94 28

95 36

96 30

97 32

98 35

99 21

100 18

101 29

102 26

103 27

104 30

105 32

106 35

107 25

108 25

109 28

110 24

111 33

112 28

113 30

114 26

115 36

116 33

117 27

118 28

119 24

120 27

121 40

122 25

123 29

124 33

125 32

126 24

127 22

128 26

129 37

130 28

131 29

132 35

133 26

134 33

135 23

136 27

137 34

138 29

139 25

140 36

141 35

142 31

143 32

144 36

145 32

146 29

147 39

148 32

149 33

150 30

151 20

152 36

153 31

154 34

155 33

156 32

157 24

158 24

159 26

160 37

161 33

162 27

163 22

164 30

165 27

166 37

167 26

168 34

169 30

170 32

171 36

172 30

173 33

174 35

175 24

176 31

177 27

178 27

179 26

180 32

181 35

182 25

183 30

184 14

185 36

186 34

187 30

188 28

189 35

190 31

191 32

192 28

193 24

194 40

195 31

196 24

197 30

198 33

199 28

200 21

201 31

202 38

203 34

204 26

205 27

206 34

207 28

208 18

209 26

210 28

211 34

212 28

213 34

214 24

215 32

216 34

217 30

218 33

219 37

220 36

221 30

222 33

223 32

224 35

225 33

226 30

227 31

228 22

229 29

230 33

231 26

232 23

233 32

234 28

235 29

236 28

237 32

238 41

239 35

240 29

241 34

242 26

243 28

244 35

245 32

246 17

247 33

248 35

249 37

250 25

251 33

252 33

253 26

254 36

255 35

256 27

257 26

258 30

259 25

260 28

261 32

262 36

263 33

264 31

265 34

266 24

267 28

268 29

269 38

270 32

271 29

272 31

273 25

274 30

275 37

276 34

277 25

278 19

279 29

280 32

281 22

282 36

283 31

284 24

285 37

286 36

287 31

288 27

289 26

290 21

291 41

292 31

293 24

294 30

295 24

296 19

297 37

298 41

299 21

300 21

301 32

302 19

303 20

304 27

305 34

306 37

307 36

308 45

309 31

310 33

311 30

312 29

313 36

314 18

315 23

316 37

317 36

318 36

319 30

320 29

321 33

322 39

323 27

324 27

325 28

326 29

327 35

328 24

329 26

330 32

331 31

332 31

333 26

334 18

335 29

336 37

337 28

338 22

339 38

340 26

341 31

342 31

343 41

344 27

345 35

346 27

347 38

348 32

349 33

350 30

351 34

352 32

353 38

354 27

355 29

356 31

357 14

358 33

359 30

360 31

361 35

362 27

363 31

364 34

365 33

366 27

367 37

368 37

369 21

370 22

371 32

372 20

373 38

374 28

375 31

376 22

377 29

378 33

379 36

380 26

381 17

382 25

383 29

384 41

385 39

386 38

387 36

388 33

389 22

390 32

391 34

392 25

393 29

394 23

395 30

396 26

397 30

398 29

399 32

400 27

401 26

402 35

403 34

404 30

405 29

406 41

407 26

408 37

409 25

410 33

411 43

412 29

413 37

414 42

415 29

416 28

417 30

418 39

419 34

420 28

421 24

422 34

423 29

424 35

425 27

426 42

427 37

428 42

429 31

430 29

431 37

432 30

433 30

434 18

435 22

436 24

437 40

438 35

439 32

440 38

441 32

442 36

443 34

444 19

445 32

446 31

447 30

448 29

449 36

450 33

451 36

452 36

453 25

454 33

455 24

456 32

457 27

458 34

459 27

460 28

461 27

462 40

463 26

464 30

465 26

466 31

467 28

468 24

469 35

470 31

471 25

472 29

473 38

474 31

475 23

476 30

477 40

478 33

479 30

480 27

481 30

482 31

483 30

484 30

485 30

486 25

487 36

488 32

489 32

490 26

491 34

492 31

493 28

494 31

495 26

496 33

497 37

498 35

499 28

500 16

501 31

502 32

503 26

504 28

505 25

506 34

507 30

508 32

509 35

510 31

511 33

512 22

513 31

514 38

515 29

516 33

517 26

518 43

519 36

520 29

521 33

522 27

523 31

524 16

525 38

526 36

527 27

528 25

529 34

530 31

531 28

532 31

533 21

534 27

535 35

536 33

537 21

538 36

539 37

540 37

541 43

542 29

543 36

544 34

545 33

546 26

547 26

548 29

549 31

550 32

551 24

552 33

553 24

554 36

555 31

556 38

557 30

558 19

559 34

560 38

561 38

562 24

563 39

564 27

565 30

566 35

567 30

568 31

569 32

570 23

571 27

572 32

573 30

574 34

575 27

576 20

577 37

578 31

579 35

580 35

581 32

582 29

583 34

584 36

585 23

586 26

587 33

588 31

589 20

590 22

591 37

592 25

593 25

594 26

595 38

596 37

597 24

598 26

599 32

600 25

601 25

602 30

603 28

604 32

605 29

606 18

607 30

608 21

609 32

610 32

611 32

612 37

613 37

614 32

615 23

616 26

617 41

618 33

619 26

620 29

621 30

622 24

623 22

624 30

625 40

626 24

627 35

628 23

629 28

630 34

631 29

632 27

633 27

634 30

635 23

636 29

637 33

638 26

639 37

640 30

641 34

642 29

643 31

644 25

645 24

646 28

647 36

648 29

649 28

650 31

651 20

652 31

653 32

654 32

655 25

656 30

657 34

658 30

659 34

660 21

661 27

662 32

663 30

664 26

665 29

666 32

667 24

668 27

669 25

670 32

671 30

672 35

673 27

674 41

675 22

676 35

677 26

678 27

679 21

680 33

681 33

682 20

683 29

684 28

685 31

686 32

687 24

688 21

689 37

690 36

691 30

692 30

693 35

694 38

695 33

696 40

697 30

698 35

699 20

700 29

701 35

702 35

703 35

704 26

705 32

706 29

707 28

708 18

709 26

710 21

711 30

712 33

713 32

714 29

715 31

716 26

717 36

718 37

719 40

720 35

721 28

722 29

723 32

724 30

725 27

726 27

727 29

728 24

729 34

730 32

731 24

732 22

733 32

734 30

735 25

736 31

737 33

738 39

739 30

740 44

741 23

742 31

743 23

744 32

745 28

746 40

747 12

748 30

749 25

750 27

751 28

752 29

753 27

754 25

755 30

756 37

757 23

758 29

759 30

760 30

761 37

762 30

763 28

764 32

765 25

766 35

767 33

768 31

769 34

770 31

771 23

772 32

773 29

774 31

775 28

776 23

777 25

778 31

779 28

780 27

781 24

782 38

783 38

784 29

785 41

786 37

787 38

788 20

789 33

790 24

791 27

792 29

793 25

794 31

795 23

796 27

797 30

798 34

799 30

800 44

801 24

802 35

803 33

804 29

805 32

806 29

807 35

808 33

809 34

810 29

811 40

812 24

813 40

814 30

815 25

816 29

817 27

818 24

819 33

820 27

821 24

822 31

823 29

824 31

825 34

826 35

827 24

828 30

829 26

830 33

831 36

832 28

833 27

834 30

835 36

836 25

837 37

838 39

839 39

840 32

841 40

842 21

843 24

844 24

845 30

846 36

847 29

848 36

849 29

850 26

851 32

852 34

853 37

854 30

855 27

856 31

857 26

858 31

859 28

860 31

861 40

862 32

863 26

864 31

865 29

866 33

867 31

868 33

869 25

870 28

871 28

872 29

873 30

874 31

875 25

876 26

877 36

878 22

879 29

880 39

881 45

882 29

883 38

884 26

885 27

886 33

887 30

888 29

889 23

890 31

891 37

892 27

893 26

894 40

895 28

896 40

897 24

898 34

899 31

900 29

901 21

902 21

903 29

904 29

905 33

906 34

907 35

908 20

909 34

910 27

911 25

912 27

913 32

914 26

915 19

916 15

917 32

918 26

919 25

920 25

921 26

922 30

923 31

924 32

925 23

926 27

927 23

928 23

929 33

930 33

931 33

932 32

933 28

934 19

935 40

936 30

937 31

938 25

939 31

940 33

941 43

942 36

943 34

944 29

945 34

946 27

947 30

948 29

949 31

950 31

951 16

952 26

953 27

954 31

955 18

956 23

957 27

958 35

959 27

960 33

961 32

962 36

963 29

964 32

965 31

966 27

967 44

968 27

969 31

970 37

971 35

972 25

973 33

974 29

975 34

976 32

977 32

978 27

979 29

980 23

981 30

982 20

983 28

984 34

985 31

986 33

987 28

988 35

989 31

990 36

991 24

992 35

993 24

994 34

995 33

996 34

997 25

998 32

999 27

1000 21

1001 34

1002 32

1003 35

1004 21

1005 23

1006 32

1007 30

1008 35

1009 24

1010 21

1011 32

1012 38

1013 32

1014 32

1015 36

1016 39

1017 25

1018 29

1019 28

1020 23

1021 35

1022 32

1023 21

1024 27

1025 28

1026 23

1027 37

1028 30

1029 29

1030 24

1031 32

1032 24

1033 28

1034 34

1035 23

1036 35

1037 22

1038 24

1039 33

1040 28

1041 17

1042 36

1043 26

1044 38

1045 26

1046 33

1047 29

1048 25

1049 33

1050 34

1051 28

1052 29

1053 33

1054 23

1055 32

1056 35

1057 25

1058 29

1059 25

1060 31

1061 26

1062 35

1063 35

1064 27

1065 34

1066 29

1067 31

1068 36

1069 34

1070 37

1071 37

1072 25

1073 32

1074 24

1075 35

1076 32

1077 25

1078 33

1079 34

1080 32

1081 28

1082 37

1083 24

1084 36

1085 31

1086 30

1087 37

1088 22

1089 20

1090 19

1091 29

1092 32

1093 22

1094 32

1095 41

1096 35

1097 37

1098 31

1099 32

1100 36

1101 36

1102 23

1103 37

1104 34

1105 31

1106 44

1107 30

1108 30

1109 32

1110 28

1111 20

1112 35

1113 24

1114 28

1115 33

1116 27

1117 26

1118 36

1119 32

1120 35

1121 28

1122 36

1123 31

1124 26

1125 27

1126 32

1127 31

1128 29

1129 34

1130 37

1131 24

1132 29

1133 37

1134 20

1135 33

1136 33

1137 22

1138 24

1139 22

1140 31

1141 25

1142 30

1143 22

1144 34

1145 37

1146 20

1147 23

1148 39

1149 19

1150 20

1151 25

1152 21

1153 27

1154 33

1155 31

1156 21

1157 34

1158 25

1159 35

1160 24

1161 23

1162 28

1163 31

1164 27

1165 29

1166 29

1167 25

1168 28

1169 29

1170 24

1171 19

1172 29

1173 42

1174 32

1175 35

1176 33

1177 32

1178 30

1179 18

1180 31

1181 20

1182 36

1183 21

1184 25

1185 39

1186 25

1187 30

1188 27

1189 29

1190 35

1191 34

1192 29

1193 32

1194 32

1195 43

1196 29

1197 40

1198 32

1199 25

1200 27

1201 33

1202 26

1203 27

1204 26

1205 24

1206 31

1207 27

1208 20

1209 27

1210 33

1211 25

1212 31

1213 30

1214 32

1215 36

1216 27

1217 32

1218 32

1219 32

1220 36

1221 39

1222 34

1223 24

1224 33

1225 30

1226 35

1227 34

1228 30

1229 32

1230 42

1231 24

1232 34

1233 34

1234 26

1235 28

1236 35

1237 30

1238 31

1239 38

1240 22

1241 32

1242 32

1243 22

1244 23

1245 35

1246 35

1247 31

1248 33

1249 36

1250 37

1251 24

1252 23

1253 33

1254 21

1255 34

1256 32

1257 28

1258 31

1259 29

1260 34

1261 17

1262 34

1263 22

1264 21

1265 34

1266 23

1267 41

1268 31

1269 31

1270 28

1271 26

1272 34

1273 20

1274 24

1275 21

1276 32

1277 30

1278 29

1279 27

1280 36

1281 25

1282 33

1283 23

1284 34

1285 33

1286 28

1287 17

1288 27

1289 29

1290 29

1291 32

1292 43

1293 30

1294 25

1295 29

1296 27

1297 28

1298 31

1299 31

1300 40

1301 28

1302 26

1303 33

1304 33

1305 33

1306 22

1307 40

1308 36

1309 27

1310 30

1311 40

1312 22

1313 26

1314 26

1315 29

1316 36

1317 22

1318 38

1319 24

1320 36

1321 29

1322 29

1323 35

1324 33

1325 31

1326 26

1327 27

1328 25

1329 26

1330 30

1331 32

1332 34

1333 32

1334 29

1335 42

1336 33

1337 25

1338 27

1339 26

1340 26

1341 15

1342 46

1343 20

1344 40

1345 26

1346 33

1347 22

1348 28

1349 25

1350 34

1351 34

1352 31

1353 25

1354 37

1355 23

1356 38

1357 23

1358 31

1359 32

1360 38

1361 28

1362 35

1363 24

1364 25

1365 29

1366 34

1367 33

1368 33

1369 38

1370 23

1371 30

1372 28

1373 33

1374 21

1375 35

1376 33

1377 35

1378 25

1379 31

1380 28

1381 24

1382 35

1383 30

1384 26

1385 30

1386 30

1387 30

1388 33

1389 24

1390 39

1391 31

1392 27

1393 22

1394 30

1395 23

1396 25

1397 28

1398 32

1399 25

1400 31

1401 34

1402 37

1403 21

1404 31

1405 36

1406 34

1407 25

1408 33

1409 34

1410 26

1411 35

1412 27

1413 24

1414 25

1415 26

1416 28

1417 31

1418 29

1419 33

1420 43

1421 18

1422 27

1423 23

Chart4

37987 5 19.325

14 5 19.325

1 5 19.325

19 5 19.325

15 5 19.325

3 5 19.325

5 5 19.325

3 5 19.325

7 5 19.325

0 5 19.325

2 5 19.325

3 5 19.325

7 5 19.325

5 5 19.325

13 5 19.325

0 5 19.325

2 5 19.325

1 5 19.325

6 5 19.325

6 5 19.325

14 5 19.325

2 5 19.325

13 5 19.325

3 5 19.325

0 5 19.325

2 5 19.325

9 5 19.325

12 5 19.325

18 5 19.325

23 5 19.325

5 5 19.325

7 5 19.325

5 5 19.325

2 5 19.325

11 5 19.325

6 5 19.325

0 5 19.325

7 5 19.325

4 5 19.325

13 5 19.325

17 5 19.325

9 5 19.325

1 5 19.325

4 5 19.325

0 5 19.325

9 5 19.325

16 5 19.325

5 5 19.325

5 5 19.325

7 5 19.325

2 5 19.325

13 5 19.325

2 5 19.325

4 5 19.325

3 5 19.325

6 5 19.325

5 5 19.325

7 5 19.325

16 5 19.325

7 5 19.325

8 5 19.325

2 5 19.325

5 5 19.325

4 5 19.325

4 5 19.325

9 5 19.325

16 5 19.325

13 5 19.325

8 5 19.325

13 5 19.325

5 5 19.325

1 5 19.325

4 5 19.325

8 5 19.325

11 5 19.325

3 5 19.325

5 5 19.325

1 5 19.325

2 5 19.325

1 5 19.325

3 5 19.325

5 5 19.325

21 5 19.325

15 5 19.325

3 5 19.325

2 5 19.325

1 5 19.325

4 5 19.325

6 5 19.325

4 5 19.325

3 5 19.325

Range
Average
UCL(R)
Date
Range
Range Chart

Case Study Histogram

Chicago Loan Processing Cycle Time

45

20

24

31

24

29

28

34

33

25

25

25

24

30

30

32

31

27

21

36

28

35

35

26

42

35

29

22

29

26

32

27

28

28

26

30

32

36

28

39

22

30

32

24

31

31

45

36

25

37

21

31

28

22

43

33

32

38

26

28

26

26

27

40

24

29

27

37

20

37

31

30

39

34

33

43

31

36

29

30

37

31

25

33

33

25

25

29

37

28

38

39

21

28

36

30

32

35

21

18

29

26

27

30

32

35

25

25

28

24

33

28

30

26

36

33

27

28

24

27

40

25

29

33

32

24

22

26

37

28

29

35

26

33

23

27

34

29

25

36

35

31

32

36

32

29

39

32

33

30

20

36

31

34

33

32

24

24

26

37

33

27

22

30

27

37

26

34

30

32

36

30

33

35

24

31

27

27

26

32

35

25

30

14

36

34

30

28

35

31

32

28

24

40

31

24

30

33

28

21

31

38

34

26

27

34

28

18

26

28

34

28

34

24

32

34

30

33

37

36

30

33

32

35

33

30

31

22

29

33

26

23

32

28

29

28

32

41

35

29

34

26

28

35

32

17

33

35

37

25

33

33

26

36

35

27

26

30

25

28

32

36

33

31

34

24

28

29

38

32

29

31

25

30

37

34

25

19

29

32

22

36

31

24

37

36

31

27

26

21

41

31

24

30

24

19

37

41

21

21

32

19

20

27

34

37

36

45

31

33

30

29

36

18

23

37

36

36

30

29

33

39

27

27

28

29

35

24

26

32

31

31

26

18

29

37

28

22

38

26

31

31

41

27

35

27

38

32

33

30

34

32

38

27

29

31

14

33

30

31

35

27

31

34

33

27

37

37

21

22

32

20

38

28

31

22

29

33

36

26

17

25

29

41

39

38

36

33

22

32

34

25

29

23

30

26

30

29

32

27

26

35

34

30

29

41

26

37

25

33

43

29

37

42

29

28

30

39

34

28

24

34

29

35

27

42

37

42

31

29

37

30

30

18

22

24

40

35

32

38

32

36

34

19

32

31

30

29

36

33

36

36

25

33

24

32

27

34

27

28

27

40

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23

The data set is the Loan Processing Cycle Time for Chicago. We want to display and describe the variation in the process. Follow these instructions to create the Histogram:
1. Click “Engine Room” from the toolbar above.
2. Select Measure from the menu.
3. Select Histogram from the menu.
4. Select Case Study Histogram from the menu in “Select Worksheet”.
5. Click “OK”
6. Select Chicago Loan Processing Cycle Time from the menu in “First Variable”.
7. Click “OK”
8. Engine Room will generate a new worksheet entitled “Histogram”.
When completed, answer the following questions:
1. How would you describe the variation in the data?
2. What conclusions can you draw from the Histogram and descriptive statisics?

Case Study Run Chart

Date Chicago Loan Processing Cycle Time

1-Jan 39

2-Jan 25

3-Jan 26

4-Jan 45

5-Jan 30

6-Jan 27

7-Jan 22

8-Jan 25

9-Jan 32

10-Jan 32

11-Jan 30

12-Jan 33

13-Jan 26

14-Jan 21

15-Jan 34

16-Jan 34

17-Jan 32

18-Jan 33

19-Jan 27

20-Jan 21

21-Jan 35

22-Jan 37

23-Jan 24

24-Jan 27

25-Jan 27

26-Jan 29

27-Jan 20

28-Jan 32

29-Jan 14

30-Jan 37

31-Jan 32

1-Feb 39

2-Feb 34

3-Feb 36

4-Feb 25

5-Feb 31

6-Feb 31

7-Feb 24

8-Feb 28

9-Feb 41

10-Feb 24

11-Feb 33

12-Feb 34

13-Feb 30

14-Feb 30

15-Feb 21

16-Feb 37

17-Feb 32

18-Feb 27

19-Feb 34

20-Feb 36

21-Feb 23

22-Feb 25

23-Feb 29

24-Feb 32

25-Feb 26

26-Feb 31

27-Feb 38

28-Feb 22

29-Feb 29

1-Mar 37

2-Mar 35

3-Mar 30

4-Mar 34

5-Mar 30

6-Mar 21

7-Mar 37

8-Mar 24

9-Mar 32

10-Mar 19

11-Mar 24

12-Mar 23

13-Mar 27

14-Mar 19

15-Mar 30

16-Mar 27

17-Mar 32

18-Mar 31

19-Mar 29

20-Mar 28

21-Mar 31

22-Mar 36

23-Mar 15

24-Mar 30

25-Mar 33

26-Mar 31

27-Mar 30

28-Mar 34

29-Mar 28

30-Mar 32

31-Mar 29

The sample data set is the Loan Processing Cycle Time for Chicago with dates. We want to display and describe the variation in the process. Follow these instructions to create the Run Chart (Trend Chart in Engine Room):
1. Click “Engine Room” from the toolbar above.
2. Select Measure from the menu.
3. Select Trend Chart from the menu.
4. Select Chicago Loan Processing Cycle Time from the menu in “Data”.
5. Select Date from the menu in “Time Period”.
6. Click “OK”
7. Engine Room will generate a new worksheet entitled “Trend”.
When completed, answer the following questions:
1. How would you describe the variation in the data?
2. What conclusions can you draw from the Run Chart?

Case Study Control Chart

Date Chicago Loan Processing Cycle Time

1-Jan 39

2-Jan 25

3-Jan 26

4-Jan 45

5-Jan 30

6-Jan 27

7-Jan 22

8-Jan 25

9-Jan 32

10-Jan 32

11-Jan 30

12-Jan 33

13-Jan 26

14-Jan 21

15-Jan 34

16-Jan 34

17-Jan 32

18-Jan 33

19-Jan 27

20-Jan 21

21-Jan 35

22-Jan 37

23-Jan 24

24-Jan 27

25-Jan 27

26-Jan 29

27-Jan 20

28-Jan 32

29-Jan 14

30-Jan 37

31-Jan 32

1-Feb 39

2-Feb 34

3-Feb 36

4-Feb 25

5-Feb 31

6-Feb 31

7-Feb 24

8-Feb 28

9-Feb 41

10-Feb 24

11-Feb 33

12-Feb 34

13-Feb 30

14-Feb 30

15-Feb 21

16-Feb 37

17-Feb 32

18-Feb 27

19-Feb 34

20-Feb 36

21-Feb 23

22-Feb 25

23-Feb 29

24-Feb 32

25-Feb 26

26-Feb 31

27-Feb 38

28-Feb 22

29-Feb 29

1-Mar 37

2-Mar 35

3-Mar 30

4-Mar 34

5-Mar 30

6-Mar 21

7-Mar 37

8-Mar 24

9-Mar 32

10-Mar 19

11-Mar 24

12-Mar 23

13-Mar 27

14-Mar 19

15-Mar 30

16-Mar 27

17-Mar 32

18-Mar 31

19-Mar 29

20-Mar 28

21-Mar 31

22-Mar 36

23-Mar 15

24-Mar 30

25-Mar 33

26-Mar 31

27-Mar 30

28-Mar 34

29-Mar 28

30-Mar 32

31-Mar 29

The sample data set is the Loan Processing Cycle Time for Chicago with dates. We want to display and describe the variation in the process. Follow these instructions to create the Individuals Chart (XmR in Engine Room):
1. Click “Engine Room” from the toolbar above.
2. Select Measure from the menu.
3. Select XmR Chart from the menu.
4. Select Chicago Loan Processing Cycle Time from the menu in “Data”.
5. Select Date from the menu in “Time Period”.
6. Click “OK”
7. Engine Room will generate a new worksheet entitled “X and Moving Range”.
When completed, answer the following questions:
1. How would you describe the variation in the data?
2. What conclusions can you draw from the Individuals Charts and descriptive statistics?

Case Study Pareto

Application Fields Number of Errors

Name 12

Address 3

Loan # 0

Loan Amount 26

Loan Duration 2

City 1

State 0

The data set is from a checksheet. We want to display and describe the variation in the process. Follow these instructions to create the Pareto:
1. Click “Engine Room” from the toolbar above.
2. Select Define from the menu.
3. Select Pareto Analysis from the menu.
4. Select Case Study Pareto from the menu in “Select Worksheet”.
5. Click “OK”
6. Select Number of Errors from the menu in “Data”.
7. Select Application Fields from the menu in “Category”.
8. Click “OK”
9. Engine Room will generate a new worksheet entitled “Pareto”.
When completed, answer the following questions:
1. How would you describe the variation in the data?
2. What conclusions can you draw from the Pareto and descriptive statistics?

Case Study Correlation

Number of Personnel Loans Processed

26 111

24 114

27 111

16 118

21 115

22 112

15 117

21 116

38 103

48 102

39 107

50 101

18 116

20 114

28 110

31 109

50 100

41 103

42 103

40 105

21 115

18 116

42 104

15 119

42 106

9 119

52 101

36 107

46 102

21 113

41 104

22 115

30 110

25 112

31 108

19 115

17 118

47 102

17 118

21 114

15 118

31 108

21 114

22 115

43 104

28 111

22 110

17 115

48 101

25 111

18 117

33 108

13 118

17 118

42 106

27 112

41 105

40 106

28 109

50 101

21 114

28 111

50 101

48 101

35 108

34 111

41 104

29 110

22 115

26 111

12 119

16 115

35 108

24 113

23 116

21 113

28 110

46 103

20 116

46 101

The data set is the number of loans processed per day.
We want to see if there is a strong relationship (correlation) between the loans processed per day and the number of personnel. Follow these instructions to perform correlation:
1. Click “Engine Room” from the toolbar above.
2. Select Measure from the menu.
3. Select scatter plot from the menu.
4. Select Case Study Correlation from the menu in “Select Worksheet”.
5. Click “OK”
6. Select Loans Processed from the menu in “Data”.
7.Select number of personnel from the menu in ‘Data-2 “.
8. Click “OK”
9. Engine Room will generate a new worksheet entitled “Scatter”.
When completed, answer the following questions:
1. How would you interpret the graph
2. What conclusions can you draw from p-value and the R-squared value?

Obtaining R Value

Number of Personnel Loans Processed

26 111

24 114

27 111

16 118

21 115

22 112

15 117

21 116

38 103

48 102

39 107

50 101

18 116

20 114

28 110

31 109

50 100

41 103

42 103

40 105

21 115

18 116

42 104

15 119

42 106

9 119

52 101

36 107

46 102

21 113

41 104

22 115

30 110

25 112

31 108

19 115

17 118

47 102

17 118

21 114

15 118

31 108

21 114

22 115

43 104

28 111

22 110

17 115

48 101

25 111

18 117

33 108

13 118

17 118

42 106

27 112

41 105

40 106

28 109

50 101

21 114

28 111

50 101

48 101

35 108

34 111

41 104

29 110

22 115

26 111

12 119

16 115

35 108

24 113

23 116

21 113

28 110

46 103

20 116

46 101

This is the same data set we used for the scatter plot.
Now we want to obtain the “r” value (correlation coefficient) to help us detrmine the strength of the correlation. Follow these instructions to identify the correlation coefficient (a.k.a pearson coefficient):
1. Click “Insert” from the Excel toolbar above.
2. Select function from the menu.
3. Select statistical from the “Select a Category” menu
4. In the “Select a Function” menu, scroll down to PEARSON and select.
5. Click “OK”
6. To populate the field “Array 1”, in the excel worksheet select and highlight fields A1-A81.
7.To populate the field “Array 2”, in the excel worksheet select and highlight fields B1-B81
8. Click “OK”
9. Excel will generate an “r” value in the worksheet itself.
When completed, answer the following questions:
1. How would you interpret the “r” value (correlation coefficient)?

Case Study Regression

Loans Processed Loans per hour (average) (mins)

111 6.1

114 6.2

111 5.9

118 6.7

115 6.4

112 5.7

117 6.9

116 7

103 5.8

102 5.8

107 5.2

101 5.7

116 6.6

114 6.4

110 6

109 6

100 5.1

103 5.2

103 4.9

105 5.8

115 6.5

116 6.8

104 5.7

119 6.9

106 5.4

119 7

101 5.3

107 5.8

102 5.1

113 6.1

104 5.4

115 6.5

110 6

112 6

108 5.9

115 6.1

118 6.5

102 5.2

118 6.7

114 6.6

118 6.7

108 5.9

114 6.5

115 6.3

104 5.7

111 6.9

110 5.7

115 6.8

101 5.2

111 5.9

117 6.6

108 5.6

118 6.4

118 6.6

106 5.3

112 6

105 5.5

106 5.6

109 5.6

101 5.4

114 6.4

111 6.1

101 6.5

101 5.9

108 5.5

111 6.3

104 6

110 6.5

115 6.8

111 6.2

119 7

115 6.9

108 5.9

113 6.1

116 6.9

113 5.9

110 5.4

103 4.8

116 6.4

101 5.8

The data set is the Loans Processed.
We want to see if there is a correlation between the loans processed per hour and the total loans processed per day. Follow these instructions to perform regression:
1. Click “Engine Room” from the toolbar above.
2. Select Analyze from the menu.
3. Select Simple Regression from the menu.
4. Select Case Study Regression from the menu in “Select Worksheet”.
5. Click “OK”
6. Select Loans Processed from the menu in the “Dependent Variable”.
7.Select Loans per hour from the menu in ‘Independent Variable”.
8. Click “OK”
9. Engine Room will generate a new worksheet entitled “Regression”.
When completed, answer the following questions:
1. How would you interpret the graph
2. What conclusions can you draw from p-value and the R-squared value?

Case Study Regression Results

SUMMARY OUTPUT 8.27 60.09

100 5.1

Regression Statistics 101 5.7

Multiple R 0.8193026767 101 5.3

R Square 0.671256876 101 5.2

Adjusted R Square 0.6670422206 101 5.4

Standard Error 3.2887153692 101 6.5

Observations 80 101 5.9

101 5.8

ANOVA 102 5.8

df SS MS F Significance F 102 5.1

Regression 1 1722.5793951901 1722.5793951901 159.26732 1.56980839556793E-20 102 5.2

Residual 78 843.6206048099 10.8156487796 103 5.8

Total 79 2566.2 103 5.2

103 4.9

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% 103 4.8

Intercept 60.0865544884 3.983959925 15.0821181987 7.84476407641124E-25 52.1550977424 68.0180112345 104 5.7

X Variable 1 8.2681165172 0.6551537816 12.6201156889 1.56980839556406E-20 6.9638052344 9.5724278 104 5.4

104 5.7

104 6

Formula: y = 8.27x + 60.09 105 5.8

RESIDUAL OUTPUT 105 5.5

106 5.4

Observation Predicted Y Residuals 106 5.3

1 102.2539487261 -2.2539487261 106 5.6

2 107.2148186364 -6.2148186364 107 5.2

3 103.9075720295 -2.9075720295 107 5.8

4 103.0807603778 -2.0807603778 108 5.9

5 104.7343836812 -3.7343836812 108 5.9

6 113.8293118501 -12.8293118501 108 5.6

7 108.8684419398 -7.8684419398 108 5.5

8 108.0416302881 -7.0416302881 108 5.9

9 108.0416302881 -6.0416302881 109 6

10 102.2539487261 -0.2539487261 109 5.6

11 103.0807603778 -1.0807603778 110 6

12 108.0416302881 -5.0416302881 110 6

13 103.0807603778 -0.0807603778 110 5.7

14 100.6003254227 2.3996745773 110 6.5

15 99.7735137709 3.2264862291 110 5.4

16 107.2148186364 -3.2148186364 111 6.1

17 104.7343836812 -0.7343836812 111 5.9

18 107.2148186364 -3.2148186364 111 6.9

19 109.6952535916 -5.6952535916 111 5.9

20 108.0416302881 -3.0416302881 111 6.1

21 105.561195333 -0.561195333 111 6.3

22 104.7343836812 1.2656163188 111 6.2

23 103.9075720295 2.0924279705 112 5.7

24 106.3880069847 -0.3880069847 112 6

25 103.0807603778 3.9192396222 112 6

26 108.0416302881 -1.0416302881 113 6.1

27 108.8684419398 -0.8684419398 113 6.1

28 108.8684419398 -0.8684419398 113 5.9

29 106.3880069847 1.6119930153 114 6.2

30 105.561195333 2.438804667 114 6.4

31 108.8684419398 -0.8684419398 114 6.6

32 109.6952535916 -0.6952535916 114 6.5

33 106.3880069847 2.6119930153 114 6.4

34 109.6952535916 0.3047464084 115 6.4

35 109.6952535916 0.3047464084 115 6.5

36 107.2148186364 2.7851813636 115 6.5

37 113.8293118501 -3.8293118501 115 6.1

38 104.7343836812 5.2656163188 115 6.3

39 110.5220652433 0.4779347567 115 6.8

40 108.8684419398 2.1315580602 115 6.8

41 117.136558457 -6.136558457 115 6.9

42 108.8684419398 2.1315580602 116 7

43 110.5220652433 0.4779347567 116 6.6

44 112.1756885467 -1.1756885467 116 6.8

45 111.348876895 -0.348876895 116 6.9

46 107.2148186364 4.7851813636 116 6.4

47 109.6952535916 2.3047464084 117 6.9

48 109.6952535916 2.3047464084 117 6.6

49 110.5220652433 2.4779347567 118 6.7

50 110.5220652433 2.4779347567 118 6.5

51 108.8684419398 4.1315580602 118 6.7

52 111.348876895 2.651123105 118 6.7

53 113.0025001984 0.9974998016 118 6.4

54 114.6561235019 -0.6561235019 118 6.6

55 113.8293118501 0.1706881499 119 6.9

56 113.0025001984 0.9974998016 119 7

57 113.0025001984 1.9974998016 119 7

58 113.8293118501 1.1706881499

59 113.8293118501 1.1706881499

60 110.5220652433 4.4779347567

61 112.1756885467 2.8243114533

62 116.3097468053 -1.3097468053

63 116.3097468053 -1.3097468053

64 117.136558457 -2.136558457

65 117.9633701087 -1.9633701087

66 114.6561235019 1.3438764981

67 116.3097468053 -0.3097468053

68 117.136558457 -1.136558457

69 113.0025001984 2.9974998016

70 117.136558457 -0.136558457

71 114.6561235019 2.3438764981

72 115.4829351536 2.5170648464

73 113.8293118501 4.1706881499

74 115.4829351536 2.5170648464

75 115.4829351536 2.5170648464

76 113.0025001984 4.9974998016

77 114.6561235019 3.3438764981

78 117.136558457 1.863441543

79 117.9633701087 1.0366298913

80 117.9633701087 1.0366298913

Case Study Regression Results

Y
Predicted Y
Loans per hour (average) (mins)
Loans Processed
Loans per hour (average) (mins) Line Fit Plot

X and Moving Range

Date Chicago Loan Processing Cycle Time Average – X 30

1-Jan 39 Median – Range 5

2-Jan 25 LCL – X 14

3-Jan 26 UCL – X 45

4-Jan 45 UCL – Range 19

5-Jan 30

6-Jan 27

7-Jan 22

8-Jan 25

9-Jan 32

10-Jan 32

11-Jan 30

12-Jan 33

13-Jan 26

14-Jan 21

15-Jan 34

16-Jan 34

17-Jan 32

18-Jan 33

19-Jan 27

20-Jan 21

21-Jan 35

22-Jan 37

23-Jan 24

24-Jan 27

25-Jan 27

26-Jan 29

27-Jan 20

28-Jan 32

29-Jan 14

30-Jan 37

31-Jan 32

1-Feb 39

2-Feb 34

3-Feb 36

4-Feb 25

5-Feb 31

6-Feb 31

7-Feb 24

8-Feb 28

9-Feb 41

10-Feb 24

11-Feb 33

12-Feb 34

13-Feb 30

14-Feb 30

15-Feb 21

16-Feb 37

17-Feb 32

18-Feb 27

19-Feb 34

20-Feb 36

21-Feb 23

22-Feb 25

23-Feb 29

24-Feb 32

25-Feb 26

26-Feb 31

27-Feb 38

28-Feb 22

29-Feb 29

1-Mar 37

2-Mar 35

3-Mar 30

4-Mar 34

5-Mar 30

6-Mar 21

7-Mar 37

8-Mar 24

9-Mar 32

10-Mar 19

11-Mar 24

12-Mar 23

13-Mar 27

14-Mar 19

15-Mar 30

16-Mar 27

17-Mar 32

18-Mar 31

19-Mar 29

20-Mar 28

21-Mar 31

22-Mar 36

23-Mar 15

24-Mar 30

25-Mar 33

26-Mar 31

27-Mar 30

28-Mar 34

29-Mar 28

30-Mar 32

31-Mar 29

67% of the variation in total loans processed is explained by loans processed per hour. ** Since this is transactional data, this is considered a high r-squared value.
High R-Square value
The E-20 means there are 20 zeros before the 1.56981…so this number is effectively zero. Since this is less than 0.05 we reject the null hypothesis that m= 0. In practical terms, this indicates a strong correlation between loans per hour and total loans processed per day.
Low P-value so Strong Correlation indicated.

X and Moving Range

39 29.5384615385 45.2634615385 13.8134615385

25 29.5384615385 45.2634615385 13.8134615385

26 29.5384615385 45.2634615385 13.8134615385

45 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

27 29.5384615385 45.2634615385 13.8134615385

22 29.5384615385 45.2634615385 13.8134615385

25 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

33 29.5384615385 45.2634615385 13.8134615385

26 29.5384615385 45.2634615385 13.8134615385

21 29.5384615385 45.2634615385 13.8134615385

34 29.5384615385 45.2634615385 13.8134615385

34 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

33 29.5384615385 45.2634615385 13.8134615385

27 29.5384615385 45.2634615385 13.8134615385

21 29.5384615385 45.2634615385 13.8134615385

35 29.5384615385 45.2634615385 13.8134615385

37 29.5384615385 45.2634615385 13.8134615385

24 29.5384615385 45.2634615385 13.8134615385

27 29.5384615385 45.2634615385 13.8134615385

27 29.5384615385 45.2634615385 13.8134615385

29 29.5384615385 45.2634615385 13.8134615385

20 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

14 29.5384615385 45.2634615385 13.8134615385

37 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

39 29.5384615385 45.2634615385 13.8134615385

34 29.5384615385 45.2634615385 13.8134615385

36 29.5384615385 45.2634615385 13.8134615385

25 29.5384615385 45.2634615385 13.8134615385

31 29.5384615385 45.2634615385 13.8134615385

31 29.5384615385 45.2634615385 13.8134615385

24 29.5384615385 45.2634615385 13.8134615385

28 29.5384615385 45.2634615385 13.8134615385

41 29.5384615385 45.2634615385 13.8134615385

24 29.5384615385 45.2634615385 13.8134615385

33 29.5384615385 45.2634615385 13.8134615385

34 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

21 29.5384615385 45.2634615385 13.8134615385

37 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

27 29.5384615385 45.2634615385 13.8134615385

34 29.5384615385 45.2634615385 13.8134615385

36 29.5384615385 45.2634615385 13.8134615385

23 29.5384615385 45.2634615385 13.8134615385

25 29.5384615385 45.2634615385 13.8134615385

29 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

26 29.5384615385 45.2634615385 13.8134615385

31 29.5384615385 45.2634615385 13.8134615385

38 29.5384615385 45.2634615385 13.8134615385

22 29.5384615385 45.2634615385 13.8134615385

29 29.5384615385 45.2634615385 13.8134615385

37 29.5384615385 45.2634615385 13.8134615385

35 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

34 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

21 29.5384615385 45.2634615385 13.8134615385

37 29.5384615385 45.2634615385 13.8134615385

24 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

19 29.5384615385 45.2634615385 13.8134615385

24 29.5384615385 45.2634615385 13.8134615385

23 29.5384615385 45.2634615385 13.8134615385

27 29.5384615385 45.2634615385 13.8134615385

19 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

27 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

31 29.5384615385 45.2634615385 13.8134615385

29 29.5384615385 45.2634615385 13.8134615385

28 29.5384615385 45.2634615385 13.8134615385

31 29.5384615385 45.2634615385 13.8134615385

36 29.5384615385 45.2634615385 13.8134615385

15 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

33 29.5384615385 45.2634615385 13.8134615385

31 29.5384615385 45.2634615385 13.8134615385

30 29.5384615385 45.2634615385 13.8134615385

34 29.5384615385 45.2634615385 13.8134615385

28 29.5384615385 45.2634615385 13.8134615385

32 29.5384615385 45.2634615385 13.8134615385

29 29.5384615385 45.2634615385 13.8134615385

Data1
Average
UCL
LCL
Date
Chicago Loan Processing Cycle Time
X Chart

XMRData-4

37987 5 19.325

14 5 19.325

1 5 19.325

19 5 19.325

15 5 19.325

3 5 19.325

5 5 19.325

3 5 19.325

7 5 19.325

0 5 19.325

2 5 19.325

3 5 19.325

7 5 19.325

5 5 19.325

13 5 19.325

0 5 19.325

2 5 19.325

1 5 19.325

6 5 19.325

6 5 19.325

14 5 19.325

2 5 19.325

13 5 19.325

3 5 19.325

0 5 19.325

2 5 19.325

9 5 19.325

12 5 19.325

18 5 19.325

23 5 19.325

5 5 19.325

7 5 19.325

5 5 19.325

2 5 19.325

11 5 19.325

6 5 19.325

0 5 19.325

7 5 19.325

4 5 19.325

13 5 19.325

17 5 19.325

9 5 19.325

1 5 19.325

4 5 19.325

0 5 19.325

9 5 19.325

16 5 19.325

5 5 19.325

5 5 19.325

7 5 19.325

2 5 19.325

13 5 19.325

2 5 19.325

4 5 19.325

3 5 19.325

6 5 19.325

5 5 19.325

7 5 19.325

16 5 19.325

7 5 19.325

8 5 19.325

2 5 19.325

5 5 19.325

4 5 19.325

4 5 19.325

9 5 19.325

16 5 19.325

13 5 19.325

8 5 19.325

13 5 19.325

5 5 19.325

1 5 19.325

4 5 19.325

8 5 19.325

11 5 19.325

3 5 19.325

5 5 19.325

1 5 19.325

2 5 19.325

1 5 19.325

3 5 19.325

5 5 19.325

21 5 19.325

15 5 19.325

3 5 19.325

2 5 19.325

1 5 19.325

4 5 19.325

6 5 19.325

4 5 19.325

3 5 19.325

Range
Average
UCL(R)
Date
Range
Range Chart

XMRData-3

Date Chicago Loan Processing Cycle Time Average Range R-Median UCL – Range LCL – X UCL – X

1-Jan 39 29.5384615385 5 19.325 13.8134615385 45.2634615385

2-Jan 25 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

3-Jan 26 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

4-Jan 45 29.5384615385 19 5 19.325 13.8134615385 45.2634615385

5-Jan 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

6-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

7-Jan 22 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

8-Jan 25 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

9-Jan 32 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

10-Jan 32 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

11-Jan 30 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

12-Jan 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

13-Jan 26 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

14-Jan 21 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

15-Jan 34 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

16-Jan 34 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

17-Jan 32 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

18-Jan 33 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Jan 27 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

20-Jan 21 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

21-Jan 35 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

22-Jan 37 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Jan 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

24-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Jan 27 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

26-Jan 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Jan 20 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

28-Jan 32 29.5384615385 12 5 19.325 13.8134615385 45.2634615385

29-Jan 14 29.5384615385 18 5 19.325 13.8134615385 45.2634615385

30-Jan 37 29.5384615385 23 5 19.325 13.8134615385 45.2634615385

31-Jan 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

1-Feb 39 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

2-Feb 34 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

3-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

4-Feb 25 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

5-Feb 31 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

6-Feb 31 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

7-Feb 24 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

8-Feb 28 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

9-Feb 41 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

10-Feb 24 29.5384615385 17 5 19.325 13.8134615385 45.2634615385

11-Feb 33 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

12-Feb 34 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Feb 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Feb 30 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

15-Feb 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

16-Feb 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

17-Feb 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Feb 27 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

19-Feb 34 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

20-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

21-Feb 23 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

22-Feb 25 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Feb 29 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

24-Feb 32 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Feb 26 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

26-Feb 31 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

27-Feb 38 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

28-Feb 22 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

29-Feb 29 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

1-Mar 37 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

2-Mar 35 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

3-Mar 30 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

4-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

5-Mar 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

6-Mar 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

7-Mar 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

8-Mar 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

9-Mar 32 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

10-Mar 19 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

11-Mar 24 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

12-Mar 23 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Mar 27 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Mar 19 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

15-Mar 30 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

16-Mar 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

17-Mar 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Mar 31 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Mar 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

20-Mar 28 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

21-Mar 31 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

22-Mar 36 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

23-Mar 15 29.5384615385 21 5 19.325 13.8134615385 45.2634615385

24-Mar 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

25-Mar 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

26-Mar 31 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Mar 30 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

28-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

29-Mar 28 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

30-Mar 32 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

31-Mar 29 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

XMRData-2

Date Chicago Loan Processing Cycle Time Average Range R-Median UCL – Range LCL – X UCL – X

1-Jan 39 29.5384615385 5 19.325 13.8134615385 45.2634615385

2-Jan 25 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

3-Jan 26 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

4-Jan 45 29.5384615385 19 5 19.325 13.8134615385 45.2634615385

5-Jan 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

6-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

7-Jan 22 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

8-Jan 25 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

9-Jan 32 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

10-Jan 32 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

11-Jan 30 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

12-Jan 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

13-Jan 26 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

14-Jan 21 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

15-Jan 34 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

16-Jan 34 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

17-Jan 32 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

18-Jan 33 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Jan 27 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

20-Jan 21 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

21-Jan 35 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

22-Jan 37 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Jan 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

24-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Jan 27 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

26-Jan 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Jan 20 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

28-Jan 32 29.5384615385 12 5 19.325 13.8134615385 45.2634615385

29-Jan 14 29.5384615385 18 5 19.325 13.8134615385 45.2634615385

30-Jan 37 29.5384615385 23 5 19.325 13.8134615385 45.2634615385

31-Jan 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

1-Feb 39 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

2-Feb 34 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

3-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

4-Feb 25 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

5-Feb 31 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

6-Feb 31 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

7-Feb 24 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

8-Feb 28 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

9-Feb 41 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

10-Feb 24 29.5384615385 17 5 19.325 13.8134615385 45.2634615385

11-Feb 33 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

12-Feb 34 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Feb 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Feb 30 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

15-Feb 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

16-Feb 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

17-Feb 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Feb 27 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

19-Feb 34 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

20-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

21-Feb 23 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

22-Feb 25 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Feb 29 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

24-Feb 32 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Feb 26 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

26-Feb 31 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

27-Feb 38 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

28-Feb 22 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

29-Feb 29 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

1-Mar 37 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

2-Mar 35 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

3-Mar 30 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

4-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

5-Mar 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

6-Mar 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

7-Mar 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

8-Mar 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

9-Mar 32 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

10-Mar 19 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

11-Mar 24 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

12-Mar 23 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Mar 27 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Mar 19 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

15-Mar 30 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

16-Mar 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

17-Mar 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Mar 31 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Mar 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

20-Mar 28 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

21-Mar 31 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

22-Mar 36 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

23-Mar 15 29.5384615385 21 5 19.325 13.8134615385 45.2634615385

24-Mar 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

25-Mar 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

26-Mar 31 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Mar 30 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

28-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

29-Mar 28 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

30-Mar 32 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

31-Mar 29 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

XMRData-1

Date Chicago Loan Processing Cycle Time Average Range R-Mean UCL – Range LCL – X UCL – X

1-Jan 39 29.5384615385 6.6222222222 21.6414222222 11.9233504274 47.1535726496

2-Jan 25 29.5384615385 14 6.6222222222 21.6414222222 11.9233504274 47.1535726496

3-Jan 26 29.5384615385 1 6.6222222222 21.6414222222 11.9233504274 47.1535726496

4-Jan 45 29.5384615385 19 6.6222222222 21.6414222222 11.9233504274 47.1535726496

5-Jan 30 29.5384615385 15 6.6222222222 21.6414222222 11.9233504274 47.1535726496

6-Jan 27 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

7-Jan 22 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

8-Jan 25 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

9-Jan 32 29.5384615385 7 6.6222222222 21.6414222222 11.9233504274 47.1535726496

10-Jan 32 29.5384615385 0 6.6222222222 21.6414222222 11.9233504274 47.1535726496

11-Jan 30 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

12-Jan 33 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

13-Jan 26 29.5384615385 7 6.6222222222 21.6414222222 11.9233504274 47.1535726496

14-Jan 21 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

15-Jan 34 29.5384615385 13 6.6222222222 21.6414222222 11.9233504274 47.1535726496

16-Jan 34 29.5384615385 0 6.6222222222 21.6414222222 11.9233504274 47.1535726496

17-Jan 32 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

18-Jan 33 29.5384615385 1 6.6222222222 21.6414222222 11.9233504274 47.1535726496

19-Jan 27 29.5384615385 6 6.6222222222 21.6414222222 11.9233504274 47.1535726496

20-Jan 21 29.5384615385 6 6.6222222222 21.6414222222 11.9233504274 47.1535726496

21-Jan 35 29.5384615385 14 6.6222222222 21.6414222222 11.9233504274 47.1535726496

22-Jan 37 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

23-Jan 24 29.5384615385 13 6.6222222222 21.6414222222 11.9233504274 47.1535726496

24-Jan 27 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

25-Jan 27 29.5384615385 0 6.6222222222 21.6414222222 11.9233504274 47.1535726496

26-Jan 29 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

27-Jan 20 29.5384615385 9 6.6222222222 21.6414222222 11.9233504274 47.1535726496

28-Jan 32 29.5384615385 12 6.6222222222 21.6414222222 11.9233504274 47.1535726496

29-Jan 14 29.5384615385 18 6.6222222222 21.6414222222 11.9233504274 47.1535726496

30-Jan 37 29.5384615385 23 6.6222222222 21.6414222222 11.9233504274 47.1535726496

31-Jan 32 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

1-Feb 39 29.5384615385 7 6.6222222222 21.6414222222 11.9233504274 47.1535726496

2-Feb 34 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

3-Feb 36 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

4-Feb 25 29.5384615385 11 6.6222222222 21.6414222222 11.9233504274 47.1535726496

5-Feb 31 29.5384615385 6 6.6222222222 21.6414222222 11.9233504274 47.1535726496

6-Feb 31 29.5384615385 0 6.6222222222 21.6414222222 11.9233504274 47.1535726496

7-Feb 24 29.5384615385 7 6.6222222222 21.6414222222 11.9233504274 47.1535726496

8-Feb 28 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

9-Feb 41 29.5384615385 13 6.6222222222 21.6414222222 11.9233504274 47.1535726496

10-Feb 24 29.5384615385 17 6.6222222222 21.6414222222 11.9233504274 47.1535726496

11-Feb 33 29.5384615385 9 6.6222222222 21.6414222222 11.9233504274 47.1535726496

12-Feb 34 29.5384615385 1 6.6222222222 21.6414222222 11.9233504274 47.1535726496

13-Feb 30 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

14-Feb 30 29.5384615385 0 6.6222222222 21.6414222222 11.9233504274 47.1535726496

15-Feb 21 29.5384615385 9 6.6222222222 21.6414222222 11.9233504274 47.1535726496

16-Feb 37 29.5384615385 16 6.6222222222 21.6414222222 11.9233504274 47.1535726496

17-Feb 32 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

18-Feb 27 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

19-Feb 34 29.5384615385 7 6.6222222222 21.6414222222 11.9233504274 47.1535726496

20-Feb 36 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

21-Feb 23 29.5384615385 13 6.6222222222 21.6414222222 11.9233504274 47.1535726496

22-Feb 25 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

23-Feb 29 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

24-Feb 32 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

25-Feb 26 29.5384615385 6 6.6222222222 21.6414222222 11.9233504274 47.1535726496

26-Feb 31 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

27-Feb 38 29.5384615385 7 6.6222222222 21.6414222222 11.9233504274 47.1535726496

28-Feb 22 29.5384615385 16 6.6222222222 21.6414222222 11.9233504274 47.1535726496

29-Feb 29 29.5384615385 7 6.6222222222 21.6414222222 11.9233504274 47.1535726496

1-Mar 37 29.5384615385 8 6.6222222222 21.6414222222 11.9233504274 47.1535726496

2-Mar 35 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

3-Mar 30 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

4-Mar 34 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

5-Mar 30 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

6-Mar 21 29.5384615385 9 6.6222222222 21.6414222222 11.9233504274 47.1535726496

7-Mar 37 29.5384615385 16 6.6222222222 21.6414222222 11.9233504274 47.1535726496

8-Mar 24 29.5384615385 13 6.6222222222 21.6414222222 11.9233504274 47.1535726496

9-Mar 32 29.5384615385 8 6.6222222222 21.6414222222 11.9233504274 47.1535726496

10-Mar 19 29.5384615385 13 6.6222222222 21.6414222222 11.9233504274 47.1535726496

11-Mar 24 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

12-Mar 23 29.5384615385 1 6.6222222222 21.6414222222 11.9233504274 47.1535726496

13-Mar 27 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

14-Mar 19 29.5384615385 8 6.6222222222 21.6414222222 11.9233504274 47.1535726496

15-Mar 30 29.5384615385 11 6.6222222222 21.6414222222 11.9233504274 47.1535726496

16-Mar 27 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

17-Mar 32 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

18-Mar 31 29.5384615385 1 6.6222222222 21.6414222222 11.9233504274 47.1535726496

19-Mar 29 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

20-Mar 28 29.5384615385 1 6.6222222222 21.6414222222 11.9233504274 47.1535726496

21-Mar 31 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

22-Mar 36 29.5384615385 5 6.6222222222 21.6414222222 11.9233504274 47.1535726496

23-Mar 15 29.5384615385 21 6.6222222222 21.6414222222 11.9233504274 47.1535726496

24-Mar 30 29.5384615385 15 6.6222222222 21.6414222222 11.9233504274 47.1535726496

25-Mar 33 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

26-Mar 31 29.5384615385 2 6.6222222222 21.6414222222 11.9233504274 47.1535726496

27-Mar 30 29.5384615385 1 6.6222222222 21.6414222222 11.9233504274 47.1535726496

28-Mar 34 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

29-Mar 28 29.5384615385 6 6.6222222222 21.6414222222 11.9233504274 47.1535726496

30-Mar 32 29.5384615385 4 6.6222222222 21.6414222222 11.9233504274 47.1535726496

31-Mar 29 29.5384615385 3 6.6222222222 21.6414222222 11.9233504274 47.1535726496

XMRData

Date Chicago Loan Processing Cycle Time Average Range R-Median UCL – Range LCL – X UCL – X

1-Jan 39 29.5384615385 5 19.325 13.8134615385 45.2634615385

2-Jan 25 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

3-Jan 26 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

4-Jan 45 29.5384615385 19 5 19.325 13.8134615385 45.2634615385

5-Jan 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

6-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

7-Jan 22 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

8-Jan 25 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

9-Jan 32 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

10-Jan 32 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

11-Jan 30 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

12-Jan 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

13-Jan 26 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

14-Jan 21 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

15-Jan 34 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

16-Jan 34 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

17-Jan 32 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

18-Jan 33 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Jan 27 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

20-Jan 21 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

21-Jan 35 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

22-Jan 37 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Jan 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

24-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Jan 27 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

26-Jan 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Jan 20 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

28-Jan 32 29.5384615385 12 5 19.325 13.8134615385 45.2634615385

29-Jan 14 29.5384615385 18 5 19.325 13.8134615385 45.2634615385

30-Jan 37 29.5384615385 23 5 19.325 13.8134615385 45.2634615385

31-Jan 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

1-Feb 39 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

2-Feb 34 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

3-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

4-Feb 25 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

5-Feb 31 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

6-Feb 31 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

7-Feb 24 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

8-Feb 28 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

9-Feb 41 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

10-Feb 24 29.5384615385 17 5 19.325 13.8134615385 45.2634615385

11-Feb 33 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

12-Feb 34 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Feb 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Feb 30 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

15-Feb 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

16-Feb 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

17-Feb 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Feb 27 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

19-Feb 34 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

20-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

21-Feb 23 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

22-Feb 25 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Feb 29 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

24-Feb 32 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Feb 26 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

26-Feb 31 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

27-Feb 38 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

28-Feb 22 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

29-Feb 29 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

1-Mar 37 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

2-Mar 35 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

3-Mar 30 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

4-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

5-Mar 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

6-Mar 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

7-Mar 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

8-Mar 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

9-Mar 32 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

10-Mar 19 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

11-Mar 24 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

12-Mar 23 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Mar 27 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Mar 19 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

15-Mar 30 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

16-Mar 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

17-Mar 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Mar 31 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Mar 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

20-Mar 28 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

21-Mar 31 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

22-Mar 36 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

23-Mar 15 29.5384615385 21 5 19.325 13.8134615385 45.2634615385

24-Mar 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

25-Mar 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

26-Mar 31 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Mar 30 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

28-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

29-Mar 28 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

30-Mar 32 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

31-Mar 29 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

XBSData

Date Chicago Loan Processing Cycle Time Average Range R-Median UCL – Range LCL – X UCL – X

1-Jan 39 29.5384615385 5 19.325 13.8134615385 45.2634615385

2-Jan 25 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

3-Jan 26 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

4-Jan 45 29.5384615385 19 5 19.325 13.8134615385 45.2634615385

5-Jan 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

6-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

7-Jan 22 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

8-Jan 25 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

9-Jan 32 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

10-Jan 32 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

11-Jan 30 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

12-Jan 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

13-Jan 26 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

14-Jan 21 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

15-Jan 34 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

16-Jan 34 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

17-Jan 32 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

18-Jan 33 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Jan 27 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

20-Jan 21 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

21-Jan 35 29.5384615385 14 5 19.325 13.8134615385 45.2634615385

22-Jan 37 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Jan 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

24-Jan 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Jan 27 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

26-Jan 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Jan 20 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

28-Jan 32 29.5384615385 12 5 19.325 13.8134615385 45.2634615385

29-Jan 14 29.5384615385 18 5 19.325 13.8134615385 45.2634615385

30-Jan 37 29.5384615385 23 5 19.325 13.8134615385 45.2634615385

31-Jan 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

1-Feb 39 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

2-Feb 34 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

3-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

4-Feb 25 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

5-Feb 31 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

6-Feb 31 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

7-Feb 24 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

8-Feb 28 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

9-Feb 41 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

10-Feb 24 29.5384615385 17 5 19.325 13.8134615385 45.2634615385

11-Feb 33 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

12-Feb 34 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Feb 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Feb 30 29.5384615385 0 5 19.325 13.8134615385 45.2634615385

15-Feb 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

16-Feb 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

17-Feb 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Feb 27 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

19-Feb 34 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

20-Feb 36 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

21-Feb 23 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

22-Feb 25 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

23-Feb 29 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

24-Feb 32 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

25-Feb 26 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

26-Feb 31 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

27-Feb 38 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

28-Feb 22 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

29-Feb 29 29.5384615385 7 5 19.325 13.8134615385 45.2634615385

1-Mar 37 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

2-Mar 35 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

3-Mar 30 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

4-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

5-Mar 30 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

6-Mar 21 29.5384615385 9 5 19.325 13.8134615385 45.2634615385

7-Mar 37 29.5384615385 16 5 19.325 13.8134615385 45.2634615385

8-Mar 24 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

9-Mar 32 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

10-Mar 19 29.5384615385 13 5 19.325 13.8134615385 45.2634615385

11-Mar 24 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

12-Mar 23 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

13-Mar 27 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

14-Mar 19 29.5384615385 8 5 19.325 13.8134615385 45.2634615385

15-Mar 30 29.5384615385 11 5 19.325 13.8134615385 45.2634615385

16-Mar 27 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

17-Mar 32 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

18-Mar 31 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

19-Mar 29 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

20-Mar 28 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

21-Mar 31 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

22-Mar 36 29.5384615385 5 5 19.325 13.8134615385 45.2634615385

23-Mar 15 29.5384615385 21 5 19.325 13.8134615385 45.2634615385

24-Mar 30 29.5384615385 15 5 19.325 13.8134615385 45.2634615385

25-Mar 33 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

26-Mar 31 29.5384615385 2 5 19.325 13.8134615385 45.2634615385

27-Mar 30 29.5384615385 1 5 19.325 13.8134615385 45.2634615385

28-Mar 34 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

29-Mar 28 29.5384615385 6 5 19.325 13.8134615385 45.2634615385

30-Mar 32 29.5384615385 4 5 19.325 13.8134615385 45.2634615385

31-Mar 29 29.5384615385 3 5 19.325 13.8134615385 45.2634615385

HistData

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 Average StdDev X Bar Bar S Bar LCL – S UCL – S LCL – X UCL – X

1 37987 37988 37989 37990 37991 37992 37993 37994 37995 37996 37997 37998 37999 38000 38001 38002 38003 38004 38005 38006 38007 38008 38009 38010 38011 38012 38013 38014 38015 38016 38017 38018 38019 38020 38021 38022 38023 38024 38025 38026 38027 38028 38029 38030 38031 38032 38033 38034 38035 38036 38037 38038 38039 38040 38041 38042 38043 38044 38045 38046 38047 38048 38049 38050 38051 38052 38053 38054 38055 38056 38057 38058 38059 38060 38061 38062 38063 38064 38065 38066 38067 38068 38069 38070 38071 38072 38073 38074 38075 38076 38077 38032 26.4133804475 19030.7692307692 16.0598635958 -127.8720872474 159.9918144389 19014.8581890309 19046.6802725076

2 39 25 26 45 30 27 22 25 32 32 30 33 26 21 34 34 32 33 27 21 35 37 24 27 27 29 20 32 14 37 32 39 34 36 25 31 31 24 28 41 24 33 34 30 30 21 37 32 27 34 36 23 25 29 32 26 31 38 22 29 37 35 30 34 30 21 37 24 32 19 24 23 27 19 30 27 32 31 29 28 31 36 15 30 33 31 30 34 28 32 29 29.5384615385 5.706346744 19030.7692307692 16.0598635958 -127.8720872474 159.9918144389 19014.8581890309 19046.6802725076

HistData-1

Observation Max 46 Bin Frequency Cum Count Bins

1 45 Min 12 12 1 0.1% 1423 10

2 20 Interval 3.7777777778 15.7777777778 4 0.0035137034

3 24 19.5555555556 28 0.0231904427

4 31 23.3333333333 124 0.1103302881

5 24 27.1111111111 303 0.3232607168

6 29 30.8888888889 283 0.5221363317

7 28 34.6666666667 392 0.7976106817

8 34 38.4444444444 213 0.9472944483

9 33 42.2222222222 57 0.9873506676

10 25 46 18 1

11 25 0 0 0

12 25 0 0 0

13 24 0 0 0

14 30 0 0 0

15 30 0 0 0

16 32 0 0 0

17 31 0 0 0

18 27 0 0 0

19 21 0 0 0

20 36 0 0 0

21 28 0 0 0

22 35 0 0 0

23 35 0 0 0

24 26 0 0 0

25 42 0 0 0

26 35 0 0 0

27 29 0 0 0

28 22 0 0 0

29 29 0 0 0

30 26 0 0 0

31 32

32 27

33 28

34 28

35 26

36 30

37 32

38 36

39 28

40 39

41 22

42 30

43 32

44 24

45 31

46 31

47 45

48 36

49 25

50 37

51 21

52 31

53 28

54 22

55 43

56 33

57 32

58 38

59 26

60 28

61 26

62 26

63 27

64 40

65 24

66 29

67 27

68 37

69 20

70 37

71 31

72 30

73 39

74 34

75 33

76 43

77 31

78 36

79 29

80 30

81 37

82 31

83 25

84 33

85 33

86 25

87 25

88 29

89 37

90 28

91 38

92 39

93 21

94 28

95 36

96 30

97 32

98 35

99 21

100 18

101 29

102 26

103 27

104 30

105 32

106 35

107 25

108 25

109 28

110 24

111 33

112 28

113 30

114 26

115 36

116 33

117 27

118 28

119 24

120 27

121 40

122 25

123 29

124 33

125 32

126 24

127 22

128 26

129 37

130 28

131 29

132 35

133 26

134 33

135 23

136 27

137 34

138 29

139 25

140 36

141 35

142 31

143 32

144 36

145 32

146 29

147 39

148 32

149 33

150 30

151 20

152 36

153 31

154 34

155 33

156 32

157 24

158 24

159 26

160 37

161 33

162 27

163 22

164 30

165 27

166 37

167 26

168 34

169 30

170 32

171 36

172 30

173 33

174 35

175 24

176 31

177 27

178 27

179 26

180 32

181 35

182 25

183 30

184 14

185 36

186 34

187 30

188 28

189 35

190 31

191 32

192 28

193 24

194 40

195 31

196 24

197 30

198 33

199 28

200 21

201 31

202 38

203 34

204 26

205 27

206 34

207 28

208 18

209 26

210 28

211 34

212 28

213 34

214 24

215 32

216 34

217 30

218 33

219 37

220 36

221 30

222 33

223 32

224 35

225 33

226 30

227 31

228 22

229 29

230 33

231 26

232 23

233 32

234 28

235 29

236 28

237 32

238 41

239 35

240 29

241 34

242 26

243 28

244 35

245 32

246 17

247 33

248 35

249 37

250 25

251 33

252 33

253 26

254 36

255 35

256 27

257 26

258 30

259 25

260 28

261 32

262 36

263 33

264 31

265 34

266 24

267 28

268 29

269 38

270 32

271 29

272 31

273 25

274 30

275 37

276 34

277 25

278 19

279 29

280 32

281 22

282 36

283 31

284 24

285 37

286 36

287 31

288 27

289 26

290 21

291 41

292 31

293 24

294 30

295 24

296 19

297 37

298 41

299 21

300 21

301 32

302 19

303 20

304 27

305 34

306 37

307 36

308 45

309 31

310 33

311 30

312 29

313 36

314 18

315 23

316 37

317 36

318 36

319 30

320 29

321 33

322 39

323 27

324 27

325 28

326 29

327 35

328 24

329 26

330 32

331 31

332 31

333 26

334 18

335 29

336 37

337 28

338 22

339 38

340 26

341 31

342 31

343 41

344 27

345 35

346 27

347 38

348 32

349 33

350 30

351 34

352 32

353 38

354 27

355 29

356 31

357 14

358 33

359 30

360 31

361 35

362 27

363 31

364 34

365 33

366 27

367 37

368 37

369 21

370 22

371 32

372 20

373 38

374 28

375 31

376 22

377 29

378 33

379 36

380 26

381 17

382 25

383 29

384 41

385 39

386 38

387 36

388 33

389 22

390 32

391 34

392 25

393 29

394 23

395 30

396 26

397 30

398 29

399 32

400 27

401 26

402 35

403 34

404 30

405 29

406 41

407 26

408 37

409 25

410 33

411 43

412 29

413 37

414 42

415 29

416 28

417 30

418 39

419 34

420 28

421 24

422 34

423 29

424 35

425 27

426 42

427 37

428 42

429 31

430 29

431 37

432 30

433 30

434 18

435 22

436 24

437 40

438 35

439 32

440 38

441 32

442 36

443 34

444 19

445 32

446 31

447 30

448 29

449 36

450 33

451 36

452 36

453 25

454 33

455 24

456 32

457 27

458 34

459 27

460 28

461 27

462 40

463 26

464 30

465 26

466 31

467 28

468 24

469 35

470 31

471 25

472 29

473 38

474 31

475 23

476 30

477 40

478 33

479 30

480 27

481 30

482 31

483 30

484 30

485 30

486 25

487 36

488 32

489 32

490 26

491 34

492 31

493 28

494 31

495 26

496 33

497 37

498 35

499 28

500 16

501 31

502 32

503 26

504 28

505 25

506 34

507 30

508 32

509 35

510 31

511 33

512 22

513 31

514 38

515 29

516 33

517 26

518 43

519 36

520 29

521 33

522 27

523 31

524 16

525 38

526 36

527 27

528 25

529 34

530 31

531 28

532 31

533 21

534 27

535 35

536 33

537 21

538 36

539 37

540 37

541 43

542 29

543 36

544 34

545 33

546 26

547 26

548 29

549 31

550 32

551 24

552 33

553 24

554 36

555 31

556 38

557 30

558 19

559 34

560 38

561 38

562 24

563 39

564 27

565 30

566 35

567 30

568 31

569 32

570 23

571 27

572 32

573 30

574 34

575 27

576 20

577 37

578 31

579 35

580 35

581 32

582 29

583 34

584 36

585 23

586 26

587 33

588 31

589 20

590 22

591 37

592 25

593 25

594 26

595 38

596 37

597 24

598 26

599 32

600 25

601 25

602 30

603 28

604 32

605 29

606 18

607 30

608 21

609 32

610 32

611 32

612 37

613 37

614 32

615 23

616 26

617 41

618 33

619 26

620 29

621 30

622 24

623 22

624 30

625 40

626 24

627 35

628 23

629 28

630 34

631 29

632 27

633 27

634 30

635 23

636 29

637 33

638 26

639 37

640 30

641 34

642 29

643 31

644 25

645 24

646 28

647 36

648 29

649 28

650 31

651 20

652 31

653 32

654 32

655 25

656 30

657 34

658 30

659 34

660 21

661 27

662 32

663 30

664 26

665 29

666 32

667 24

668 27

669 25

670 32

671 30

672 35

673 27

674 41

675 22

676 35

677 26

678 27

679 21

680 33

681 33

682 20

683 29

684 28

685 31

686 32

687 24

688 21

689 37

690 36

691 30

692 30

693 35

694 38

695 33

696 40

697 30

698 35

699 20

700 29

701 35

702 35

703 35

704 26

705 32

706 29

707 28

708 18

709 26

710 21

711 30

712 33

713 32

714 29

715 31

716 26

717 36

718 37

719 40

720 35

721 28

722 29

723 32

724 30

725 27

726 27

727 29

728 24

729 34

730 32

731 24

732 22

733 32

734 30

735 25

736 31

737 33

738 39

739 30

740 44

741 23

742 31

743 23

744 32

745 28

746 40

747 12

748 30

749 25

750 27

751 28

752 29

753 27

754 25

755 30

756 37

757 23

758 29

759 30

760 30

761 37

762 30

763 28

764 32

765 25

766 35

767 33

768 31

769 34

770 31

771 23

772 32

773 29

774 31

775 28

776 23

777 25

778 31

779 28

780 27

781 24

782 38

783 38

784 29

785 41

786 37

787 38

788 20

789 33

790 24

791 27

792 29

793 25

794 31

795 23

796 27

797 30

798 34

799 30

800 44

801 24

802 35

803 33

804 29

805 32

806 29

807 35

808 33

809 34

810 29

811 40

812 24

813 40

814 30

815 25

816 29

817 27

818 24

819 33

820 27

821 24

822 31

823 29

824 31

825 34

826 35

827 24

828 30

829 26

830 33

831 36

832 28

833 27

834 30

835 36

836 25

837 37

838 39

839 39

840 32

841 40

842 21

843 24

844 24

845 30

846 36

847 29

848 36

849 29

850 26

851 32

852 34

853 37

854 30

855 27

856 31

857 26

858 31

859 28

860 31

861 40

862 32

863 26

864 31

865 29

866 33

867 31

868 33

869 25

870 28

871 28

872 29

873 30

874 31

875 25

876 26

877 36

878 22

879 29

880 39

881 45

882 29

883 38

884 26

885 27

886 33

887 30

888 29

889 23

890 31

891 37

892 27

893 26

894 40

895 28

896 40

897 24

898 34

899 31

900 29

901 21

902 21

903 29

904 29

905 33

906 34

907 35

908 20

909 34

910 27

911 25

912 27

913 32

914 26

915 19

916 15

917 32

918 26

919 25

920 25

921 26

922 30

923 31

924 32

925 23

926 27

927 23

928 23

929 33

930 33

931 33

932 32

933 28

934 19

935 40

936 30

937 31

938 25

939 31

940 33

941 43

942 36

943 34

944 29

945 34

946 27

947 30

948 29

949 31

950 31

951 16

952 26

953 27

954 31

955 18

956 23

957 27

958 35

959 27

960 33

961 32

962 36

963 29

964 32

965 31

966 27

967 44

968 27

969 31

970 37

971 35

972 25

973 33

974 29

975 34

976 32

977 32

978 27

979 29

980 23

981 30

982 20

983 28

984 34

985 31

986 33

987 28

988 35

989 31

990 36

991 24

992 35

993 24

994 34

995 33

996 34

997 25

998 32

999 27

1000 21

1001 34

1002 32

1003 35

1004 21

1005 23

1006 32

1007 30

1008 35

1009 24

1010 21

1011 32

1012 38

1013 32

1014 32

1015 36

1016 39

1017 25

1018 29

1019 28

1020 23

1021 35

1022 32

1023 21

1024 27

1025 28

1026 23

1027 37

1028 30

1029 29

1030 24

1031 32

1032 24

1033 28

1034 34

1035 23

1036 35

1037 22

1038 24

1039 33

1040 28

1041 17

1042 36

1043 26

1044 38

1045 26

1046 33

1047 29

1048 25

1049 33

1050 34

1051 28

1052 29

1053 33

1054 23

1055 32

1056 35

1057 25

1058 29

1059 25

1060 31

1061 26

1062 35

1063 35

1064 27

1065 34

1066 29

1067 31

1068 36

1069 34

1070 37

1071 37

1072 25

1073 32

1074 24

1075 35

1076 32

1077 25

1078 33

1079 34

1080 32

1081 28

1082 37

1083 24

1084 36

1085 31

1086 30

1087 37

1088 22

1089 20

1090 19

1091 29

1092 32

1093 22

1094 32

1095 41

1096 35

1097 37

1098 31

1099 32

1100 36

1101 36

1102 23

1103 37

1104 34

1105 31

1106 44

1107 30

1108 30

1109 32

1110 28

1111 20

1112 35

1113 24

1114 28

1115 33

1116 27

1117 26

1118 36

1119 32

1120 35

1121 28

1122 36

1123 31

1124 26

1125 27

1126 32

1127 31

1128 29

1129 34

1130 37

1131 24

1132 29

1133 37

1134 20

1135 33

1136 33

1137 22

1138 24

1139 22

1140 31

1141 25

1142 30

1143 22

1144 34

1145 37

1146 20

1147 23

1148 39

1149 19

1150 20

1151 25

1152 21

1153 27

1154 33

1155 31

1156 21

1157 34

1158 25

1159 35

1160 24

1161 23

1162 28

1163 31

1164 27

1165 29

1166 29

1167 25

1168 28

1169 29

1170 24

1171 19

1172 29

1173 42

1174 32

1175 35

1176 33

1177 32

1178 30

1179 18

1180 31

1181 20

1182 36

1183 21

1184 25

1185 39

1186 25

1187 30

1188 27

1189 29

1190 35

1191 34

1192 29

1193 32

1194 32

1195 43

1196 29

1197 40

1198 32

1199 25

1200 27

1201 33

1202 26

1203 27

1204 26

1205 24

1206 31

1207 27

1208 20

1209 27

1210 33

1211 25

1212 31

1213 30

1214 32

1215 36

1216 27

1217 32

1218 32

1219 32

1220 36

1221 39

1222 34

1223 24

1224 33

1225 30

1226 35

1227 34

1228 30

1229 32

1230 42

1231 24

1232 34

1233 34

1234 26

1235 28

1236 35

1237 30

1238 31

1239 38

1240 22

1241 32

1242 32

1243 22

1244 23

1245 35

1246 35

1247 31

1248 33

1249 36

1250 37

1251 24

1252 23

1253 33

1254 21

1255 34

1256 32

1257 28

1258 31

1259 29

1260 34

1261 17

1262 34

1263 22

1264 21

1265 34

1266 23

1267 41

1268 31

1269 31

1270 28

1271 26

1272 34

1273 20

1274 24

1275 21

1276 32

1277 30

1278 29

1279 27

1280 36

1281 25

1282 33

1283 23

1284 34

1285 33

1286 28

1287 17

1288 27

1289 29

1290 29

1291 32

1292 43

1293 30

1294 25

1295 29

1296 27

1297 28

1298 31

1299 31

1300 40

1301 28

1302 26

1303 33

1304 33

1305 33

1306 22

1307 40

1308 36

1309 27

1310 30

1311 40

1312 22

1313 26

1314 26

1315 29

1316 36

1317 22

1318 38

1319 24

1320 36

1321 29

1322 29

1323 35

1324 33

1325 31

1326 26

1327 27

1328 25

1329 26

1330 30

1331 32

1332 34

1333 32

1334 29

1335 42

1336 33

1337 25

1338 27

1339 26

1340 26

1341 15

1342 46

1343 20

1344 40

1345 26

1346 33

1347 22

1348 28

1349 25

1350 34

1351 34

1352 31

1353 25

1354 37

1355 23

1356 38

1357 23

1358 31

1359 32

1360 38

1361 28

1362 35

1363 24

1364 25

1365 29

1366 34

1367 33

1368 33

1369 38

1370 23

1371 30

1372 28

1373 33

1374 21

1375 35

1376 33

1377 35

1378 25

1379 31

1380 28

1381 24

1382 35

1383 30

1384 26

1385 30

1386 30

1387 30

1388 33

1389 24

1390 39

1391 31

1392 27

1393 22

1394 30

1395 23

1396 25

1397 28

1398 32

1399 25

1400 31

1401 34

1402 37

1403 21

1404 31

1405 36

1406 34

1407 25

1408 33

1409 34

1410 26

1411 35

1412 27

1413 24

1414 25

1415 26

1416 28

1417 31

1418 29

1419 33

1420 43

1421 18

1422 27

1423 23

Observation Max 46 Bin Frequency Cum Count Bins

1 45 Min 12 12 1 0.1% 1423 10

2 20 Interval 3.7777777778 15.7777777778 4 0.0035137034

3 24 19.5555555556 28 0.0231904427

4 31 23.3333333333 124 0.1103302881

5 24 27.1111111111 303 0.3232607168

6 29 30.8888888889 283 0.5221363317

7 28 34.6666666667 392 0.7976106817

8 34 38.4444444444 213 0.9472944483

9 33 42.2222222222 57 0.9873506676

10 25 46 18 1

11 25 0 0 0

12 25 0 0 0

13 24 0 0 0

14 30 0 0 0

15 30 0 0 0

16 32 0 0 0

17 31 0 0 0

18 27 0 0 0

19 21 0 0 0

20 36 0 0 0

21 28 0 0 0

22 35 0 0 0

23 35 0 0 0

24 26 0 0 0

25 42 0 0 0

26 35 0 0 0

27 29 0 0 0

28 22 0 0 0

29 29 0 0 0

30 26 0 0 0

31 32

32 27

33 28

34 28

35 26

36 30

37 32

38 36

39 28

40 39

41 22

42 30

43 32

44 24

45 31

46 31

47 45

48 36

49 25

50 37

51 21

52 31

53 28

54 22

55 43

56 33

57 32

58 38

59 26

60 28

61 26

62 26

63 27

64 40

65 24

66 29

67 27

68 37

69 20

70 37

71 31

72 30

73 39

74 34

75 33

76 43

77 31

78 36

79 29

80 30

81 37

82 31

83 25

84 33

85 33

86 25

87 25

88 29

89 37

90 28

91 38

92 39

93 21

94 28

95 36

96 30

97 32

98 35

99 21

100 18

101 29

102 26

103 27

104 30

105 32

106 35

107 25

108 25

109 28

110 24

111 33

112 28

113 30

114 26

115 36

116 33

117 27

118 28

119 24

120 27

121 40

122 25

123 29

124 33

125 32

126 24

127 22

128 26

129 37

130 28

131 29

132 35

133 26

134 33

135 23

136 27

137 34

138 29

139 25

140 36

141 35

142 31

143 32

144 36

145 32

146 29

147 39

148 32

149 33

150 30

151 20

152 36

153 31

154 34

155 33

156 32

157 24

158 24

159 26

160 37

161 33

162 27

163 22

164 30

165 27

166 37

167 26

168 34

169 30

170 32

171 36

172 30

173 33

174 35

175 24

176 31

177 27

178 27

179 26

180 32

181 35

182 25

183 30

184 14

185 36

186 34

187 30

188 28

189 35

190 31

191 32

192 28

193 24

194 40

195 31

196 24

197 30

198 33

199 28

200 21

201 31

202 38

203 34

204 26

205 27

206 34

207 28

208 18

209 26

210 28

211 34

212 28

213 34

214 24

215 32

216 34

217 30

218 33

219 37

220 36

221 30

222 33

223 32

224 35

225 33

226 30

227 31

228 22

229 29

230 33

231 26

232 23

233 32

234 28

235 29

236 28

237 32

238 41

239 35

240 29

241 34

242 26

243 28

244 35

245 32

246 17

247 33

248 35

249 37

250 25

251 33

252 33

253 26

254 36

255 35

256 27

257 26

258 30

259 25

260 28

261 32

262 36

263 33

264 31

265 34

266 24

267 28

268 29

269 38

270 32

271 29

272 31

273 25

274 30

275 37

276 34

277 25

278 19

279 29

280 32

281 22

282 36

283 31

284 24

285 37

286 36

287 31

288 27

289 26

290 21

291 41

292 31

293 24

294 30

295 24

296 19

297 37

298 41

299 21

300 21

301 32

302 19

303 20

304 27

305 34

306 37

307 36

308 45

309 31

310 33

311 30

312 29

313 36

314 18

315 23

316 37

317 36

318 36

319 30

320 29

321 33

322 39

323 27

324 27

325 28

326 29

327 35

328 24

329 26

330 32

331 31

332 31

333 26

334 18

335 29

336 37

337 28

338 22

339 38

340 26

341 31

342 31

343 41

344 27

345 35

346 27

347 38

348 32

349 33

350 30

351 34

352 32

353 38

354 27

355 29

356 31

357 14

358 33

359 30

360 31

361 35

362 27

363 31

364 34

365 33

366 27

367 37

368 37

369 21

370 22

371 32

372 20

373 38

374 28

375 31

376 22

377 29

378 33

379 36

380 26

381 17

382 25

383 29

384 41

385 39

386 38

387 36

388 33

389 22

390 32

391 34

392 25

393 29

394 23

395 30

396 26

397 30

398 29

399 32

400 27

401 26

402 35

403 34

404 30

405 29

406 41

407 26

408 37

409 25

410 33

411 43

412 29

413 37

414 42

415 29

416 28

417 30

418 39

419 34

420 28

421 24

422 34

423 29

424 35

425 27

426 42

427 37

428 42

429 31

430 29

431 37

432 30

433 30

434 18

435 22

436 24

437 40

438 35

439 32

440 38

441 32

442 36

443 34

444 19

445 32

446 31

447 30

448 29

449 36

450 33

451 36

452 36

453 25

454 33

455 24

456 32

457 27

458 34

459 27

460 28

461 27

462 40

463 26

464 30

465 26

466 31

467 28

468 24

469 35

470 31

471 25

472 29

473 38

474 31

475 23

476 30

477 40

478 33

479 30

480 27

481 30

482 31

483 30

484 30

485 30

486 25

487 36

488 32

489 32

490 26

491 34

492 31

493 28

494 31

495 26

496 33

497 37

498 35

499 28

500 16

501 31

502 32

503 26

504 28

505 25

506 34

507 30

508 32

509 35

510 31

511 33

512 22

513 31

514 38

515 29

516 33

517 26

518 43

519 36

520 29

521 33

522 27

523 31

524 16

525 38

526 36

527 27

528 25

529 34

530 31

531 28

532 31

533 21

534 27

535 35

536 33

537 21

538 36

539 37

540 37

541 43

542 29

543 36

544 34

545 33

546 26

547 26

548 29

549 31

550 32

551 24

552 33

553 24

554 36

555 31

556 38

557 30

558 19

559 34

560 38

561 38

562 24

563 39

564 27

565 30

566 35

567 30

568 31

569 32

570 23

571 27

572 32

573 30

574 34

575 27

576 20

577 37

578 31

579 35

580 35

581 32

582 29

583 34

584 36

585 23

586 26

587 33

588 31

589 20

590 22

591 37

592 25

593 25

594 26

595 38

596 37

597 24

598 26

599 32

600 25

601 25

602 30

603 28

604 32

605 29

606 18

607 30

608 21

609 32

610 32

611 32

612 37

613 37

614 32

615 23

616 26

617 41

618 33

619 26

620 29

621 30

622 24

623 22

624 30

625 40

626 24

627 35

628 23

629 28

630 34

631 29

632 27

633 27

634 30

635 23

636 29

637 33

638 26

639 37

640 30

641 34

642 29

643 31

644 25

645 24

646 28

647 36

648 29

649 28

650 31

651 20

652 31

653 32

654 32

655 25

656 30

657 34

658 30

659 34

660 21

661 27

662 32

663 30

664 26

665 29

666 32

667 24

668 27

669 25

670 32

671 30

672 35

673 27

674 41

675 22

676 35

677 26

678 27

679 21

680 33

681 33

682 20

683 29

684 28

685 31

686 32

687 24

688 21

689 37

690 36

691 30

692 30

693 35

694 38

695 33

696 40

697 30

698 35

699 20

700 29

701 35

702 35

703 35

704 26

705 32

706 29

707 28

708 18

709 26

710 21

711 30

712 33

713 32

714 29

715 31

716 26

717 36

718 37

719 40

720 35

721 28

722 29

723 32

724 30

725 27

726 27

727 29

728 24

729 34

730 32

731 24

732 22

733 32

734 30

735 25

736 31

737 33

738 39

739 30

740 44

741 23

742 31

743 23

744 32

745 28

746 40

747 12

748 30

749 25

750 27

751 28

752 29

753 27

754 25

755 30

756 37

757 23

758 29

759 30

760 30

761 37

762 30

763 28

764 32

765 25

766 35

767 33

768 31

769 34

770 31

771 23

772 32

773 29

774 31

775 28

776 23

777 25

778 31

779 28

780 27

781 24

782 38

783 38

784 29

785 41

786 37

787 38

788 20

789 33

790 24

791 27

792 29

793 25

794 31

795 23

796 27

797 30

798 34

799 30

800 44

801 24

802 35

803 33

804 29

805 32

806 29

807 35

808 33

809 34

810 29

811 40

812 24

813 40

814 30

815 25

816 29

817 27

818 24

819 33

820 27

821 24

822 31

823 29

824 31

825 34

826 35

827 24

828 30

829 26

830 33

831 36

832 28

833 27

834 30

835 36

836 25

837 37

838 39

839 39

840 32

841 40

842 21

843 24

844 24

845 30

846 36

847 29

848 36

849 29

850 26

851 32

852 34

853 37

854 30

855 27

856 31

857 26

858 31

859 28

860 31

861 40

862 32

863 26

864 31

865 29

866 33

867 31

868 33

869 25

870 28

871 28

872 29

873 30

874 31

875 25

876 26

877 36

878 22

879 29

880 39

881 45

882 29

883 38

884 26

885 27

886 33

887 30

888 29

889 23

890 31

891 37

892 27

893 26

894 40

895 28

896 40

897 24

898 34

899 31

900 29

901 21

902 21

903 29

904 29

905 33

906 34

907 35

908 20

909 34

910 27

911 25

912 27

913 32

914 26

915 19

916 15

917 32

918 26

919 25

920 25

921 26

922 30

923 31

924 32

925 23

926 27

927 23

928 23

929 33

930 33

931 33

932 32

933 28

934 19

935 40

936 30

937 31

938 25

939 31

940 33

941 43

942 36

943 34

944 29

945 34

946 27

947 30

948 29

949 31

950 31

951 16

952 26

953 27

954 31

955 18

956 23

957 27

958 35

959 27

960 33

961 32

962 36

963 29

964 32

965 31

966 27

967 44

968 27

969 31

970 37

971 35

972 25

973 33

974 29

975 34

976 32

977 32

978 27

979 29

980 23

981 30

982 20

983 28

984 34

985 31

986 33

987 28

988 35

989 31

990 36

991 24

992 35

993 24

994 34

995 33

996 34

997 25

998 32

999 27

1000 21

1001 34

1002 32

1003 35

1004 21

1005 23

1006 32

1007 30

1008 35

1009 24

1010 21

1011 32

1012 38

1013 32

1014 32

1015 36

1016 39

1017 25

1018 29

1019 28

1020 23

1021 35

1022 32

1023 21

1024 27

1025 28

1026 23

1027 37

1028 30

1029 29

1030 24

1031 32

1032 24

1033 28

1034 34

1035 23

1036 35

1037 22

1038 24

1039 33

1040 28

1041 17

1042 36

1043 26

1044 38

1045 26

1046 33

1047 29

1048 25

1049 33

1050 34

1051 28

1052 29

1053 33

1054 23

1055 32

1056 35

1057 25

1058 29

1059 25

1060 31

1061 26

1062 35

1063 35

1064 27

1065 34

1066 29

1067 31

1068 36

1069 34

1070 37

1071 37

1072 25

1073 32

1074 24

1075 35

1076 32

1077 25

1078 33

1079 34

1080 32

1081 28

1082 37

1083 24

1084 36

1085 31

1086 30

1087 37

1088 22

1089 20

1090 19

1091 29

1092 32

1093 22

1094 32

1095 41

1096 35

1097 37

1098 31

1099 32

1100 36

1101 36

1102 23

1103 37

1104 34

1105 31

1106 44

1107 30

1108 30

1109 32

1110 28

1111 20

1112 35

1113 24

1114 28

1115 33

1116 27

1117 26

1118 36

1119 32

1120 35

1121 28

1122 36

1123 31

1124 26

1125 27

1126 32

1127 31

1128 29

1129 34

1130 37

1131 24

1132 29

1133 37

1134 20

1135 33

1136 33

1137 22

1138 24

1139 22

1140 31

1141 25

1142 30

1143 22

1144 34

1145 37

1146 20

1147 23

1148 39

1149 19

1150 20

1151 25

1152 21

1153 27

1154 33

1155 31

1156 21

1157 34

1158 25

1159 35

1160 24

1161 23

1162 28

1163 31

1164 27

1165 29

1166 29

1167 25

1168 28

1169 29

1170 24

1171 19

1172 29

1173 42

1174 32

1175 35

1176 33

1177 32

1178 30

1179 18

1180 31

1181 20

1182 36

1183 21

1184 25

1185 39

1186 25

1187 30

1188 27

1189 29

1190 35

1191 34

1192 29

1193 32

1194 32

1195 43

1196 29

1197 40

1198 32

1199 25

1200 27

1201 33

1202 26

1203 27

1204 26

1205 24

1206 31

1207 27

1208 20

1209 27

1210 33

1211 25

1212 31

1213 30

1214 32

1215 36

1216 27

1217 32

1218 32

1219 32

1220 36

1221 39

1222 34

1223 24

1224 33

1225 30

1226 35

1227 34

1228 30

1229 32

1230 42

1231 24

1232 34

1233 34

1234 26

1235 28

1236 35

1237 30

1238 31

1239 38

1240 22

1241 32

1242 32

1243 22

1244 23

1245 35

1246 35

1247 31

1248 33

1249 36

1250 37

1251 24

1252 23

1253 33

1254 21

1255 34

1256 32

1257 28

1258 31

1259 29

1260 34

1261 17

1262 34

1263 22

1264 21

1265 34

1266 23

1267 41

1268 31

1269 31

1270 28

1271 26

1272 34

1273 20

1274 24

1275 21

1276 32

1277 30

1278 29

1279 27

1280 36

1281 25

1282 33

1283 23

1284 34

1285 33

1286 28

1287 17

1288 27

1289 29

1290 29

1291 32

1292 43

1293 30

1294 25

1295 29

1296 27

1297 28

1298 31

1299 31

1300 40

1301 28

1302 26

1303 33

1304 33

1305 33

1306 22

1307 40

1308 36

1309 27

1310 30

1311 40

1312 22

1313 26

1314 26

1315 29

1316 36

1317 22

1318 38

1319 24

1320 36

1321 29

1322 29

1323 35

1324 33

1325 31

1326 26

1327 27

1328 25

1329 26

1330 30

1331 32

1332 34

1333 32

1334 29

1335 42

1336 33

1337 25

1338 27

1339 26

1340 26

1341 15

1342 46

1343 20

1344 40

1345 26

1346 33

1347 22

1348 28

1349 25

1350 34

1351 34

1352 31

1353 25

1354 37

1355 23

1356 38

1357 23

1358 31

1359 32

1360 38

1361 28

1362 35

1363 24

1364 25

1365 29

1366 34

1367 33

1368 33

1369 38

1370 23

1371 30

1372 28

1373 33

1374 21

1375 35

1376 33

1377 35

1378 25

1379 31

1380 28

1381 24

1382 35

1383 30

1384 26

1385 30

1386 30

1387 30

1388 33

1389 24

1390 39

1391 31

1392 27

1393 22

1394 30

1395 23

1396 25

1397 28

1398 32

1399 25

1400 31

1401 34

1402 37

1403 21

1404 31

1405 36

1406 34

1407 25

1408 33

1409 34

1410 26

1411 35

1412 27

1413 24

1414 25

1415 26

1416 28

1417 31

1418 29

1419 33

1420 43

1421 18

1422 27

1423 23

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Important Distinctions
Defective
Defect
Discrete Data: Defect vs. Defective
Any nonconformance; may have multiple “defects”
per unit
Use: “c” or “u” charts
A unit or product that contains one or more defects
(i.e. it does not matter the amount of defects it is
either right or wrong)
Use: “p” or “np” charts
31
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Copyright © 2016 Acuity Institute LLC. All rights reserved.
Summary of Variation and Control Charts
 Control limits are calculated from the process data;
specification limits come from the customer: they are
both important
 Process variation can be stable and still be
unacceptable; to reduce common cause variation,
make fundamental improvements to the vital few
root causes
 Variation is the “voice of the process” – learn to
listen and respond appropriately
32
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Copyright © 2016 Acuity Institute LLC. All rights reserved.
Interpret Control Chart
or Run Chart
Develop solutions for
special causes and
implement as
appropriate
Investigate the specific
data points related to
the special causes
Special Causes
Develop solutions for
the “vital few” process
and input Xs
Common
Causes
Investigate all of the
variation by identifying
the “vital few” process
Xs and input Xs
Response Strategy Summary
33
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Understanding the source of variation is important to devising a sound strategy for process control and improvement. The source of variation has important consequences for the type of actions required.
If a process exhibits common cause variation the appropriate action is to investigate all of the data points. Finding the “vital few” causal factors (Xs) that explain common cause variation is more difficult than finding causal factors for special causes because they are not as obvious.
If a process exhibits special cause variation the appropriate action is to investigate those specific data points related to the special cause signals. In most cases the investigation will reveal important causal factors (Xs) related to the special cause (s). The results of the investigation should be integrated into an action plan for immediately addressing the special causes.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
What is a Process Monitoring Plan?
The Process Monitoring Plan Includes:
 CTQ – The measurable requirement (Critical to Quality aspect)
the customer has of the process.
 Process Steps Where the CTQ is Measured – The step in the
process where the CTQ will be measured and data collected.
 Data Collection Method – A description of the method that will
be followed to collect the data.
 Data Collection Frequency – The frequency that the data will be
collected (hourly, daily, twice a week, monthly, etc.).
 Owner – The person responsible for collecting the data.
Process
Monitoring Plan
34
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Copyright © 2016 Acuity Institute LLC. All rights reserved.
What you learned during this section:
 What is meant by process control
 The types of control charts
 How to develop a monitoring plan
Summary of Section
35
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Copyright © 2016 Acuity Institute LLC. All rights reserved.
Control – Process Control
Dashboards
Process Monitoring
Introduction to Process Management
Lean Six Sigma Training
Measure ControlAnalyze ImproveDefine ControlControlImproveMeasure ControlControlAnalyze ImproveImproveDefine ControlControl
36
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Copyright © 2016 Acuity Institute LLC. All rights reserved.
 Understand what a dashboard is
 Understand the questions to consider when developing a
dashboard
 Utilize a dashboard example to begin development of your
project dashboard
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
37
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Copyright © 2016 Acuity Institute LLC. All rights reserved.
A process dashboard provides a visual picture of the process through data diagrams and charts.
Visualizing your process allows you to fully comprehend process performance and communicate
it to your champions and stakeholders.
Preliminary Process Dashboard
Customer: Applicant CTQ Spec: 100%
Process: New Business
Department: Customer Engagement
Owner: M. Gunner Projects: 0
88 Defects/28908 Opps
Weighted average: 5-7 opportunities/unit
4.4 Sigma without India.
India Sigma is 3.6 on 100% QA. Improving steadily.
Some Customer
Satisfaction COPQ
Defects
0
2
4
6
8
10
12
14
16
18
20
Unplanned Emp. AbsenceCustomer Not Available for
Call Back
Rejected System Downtime Hold for Sup Approval
Category
#
O
bs
er
va
tio
ns
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
38
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In planning for the design of a process dashboard you must select which
chart/tool is the best to use to display process performance and results. To do
this, you must first decide what you want the process dashboard to tell or
describe about the process it is monitoring.
Some key questions your process dashboard should answer:
1. Is my process capable? Is it meeting customer requirements?
2. If it isn’t meeting customer requirements, what might be driving the
lack of capability? What is the biggest defect contributing to the overall
defect rate?
3. How much variation is in my process?
Preliminary Process Dashboard
39
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Used to confirm relationship between two variablesAnalysisScatter Plot
Type of chart used to display data related to a process
variable in sequence over time to identify changes
MonitoringRun Charts
Used to track the relationship between two sets of data
over time
AnalysisRegression (Advanced tool)
Used to depict percentages of total in a circular diagramDisplayPie Chart
Used to identify and prioritize problems or causes of
problems
Monitoring/AnalysisPareto Analysis
Used to display frequency of data in column form. Also
used to prepare Pareto charts
MonitoringHistogram
Used to help understand variation and to control and
improve a process
MonitoringControl Charts
Used to brainstorm and logically organize possible
causes for a particular effect
AnalysisCause and Effect Diagrams
Used to display simple comparisons between series of
data
DisplayBar Chart
PurposeTypeChart/Tool
It is not necessary to use all of the charts, just choose the ones that best suit the type of data and purpose of
display for your process.
Overview of Data Tools
40
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√Run ChartPercent of Invoices that are received via electronic data interchange
EDI InvoicingInvoice
OutputProcessInputDisplayMeasurementCustomer
Requirement or
Process
Indicator
Unit Being
Processed
√Histogram and/or Run
Chart
Customer Set-Up: Time form CMM
launch to input completed
Credit Approval: Time from credit
application hand-off to credit application
approved/rejected.
Lease/Sale Contract: Time from lease
created to lease activated
Case Creation: Time from lease created
to delivery case created
Order Fulfillment Sub-
process Cycle times
Order
√Run ChartPercent of Invoices that are adjustedAdjustments
A method for organizing and identifying your preliminary dashboard
Preliminary Dashboard Measurement
Plan Matrix – Example
Dashboard
Measurement
Plan
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In addition to tracking and monitoring process results during the Control
phase, it also important to track and monitor financial results.
Teams should include financial metrics in the dashboard design to
continuously track the financial impact of the improved process and to
ensure that the organization has realized the benefits that the project
projected.
Additional Dashboard Metrics
42
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Financial Metrics Commonly Tracked:
 Project Benefits Projected vs. Actual
 Cost of Poor Quality (COPQ)
 Often tracked for individual projects
and also as a rollup metric for all
projects
Guidelines:
 Most financial benefits from projects are tracked over a 12 month period
of time after implementation
 Remember to involve Finance representatives in dashboard design to
agree on what financial metrics will be tracked and how they will be
measured.
Financial Dashboard Metrics Considerations
43
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Cycle
Time
Sales Sigma
Accuracy
Accuracy
Defects
What Should Your Gauges/Dials Be?
Process Dashboard
44
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The dashboard is the key communication tool to the organization that indicates process performance and the health of the process. The dashboard, provides the means for assuring continuing effective and efficient process performance; or detecting defects requiring removal; or, special cause variation requiring troubleshooting; or, triggering the need for new process design or reengineering to restore performance at a level that meets our customer’s needs. The dashboard indicators should tie to process goals and strategic objectives.

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The dashboard is:
 A business management tool
 Set of critical indicators
 It serves as a control infrastructure for existing improvement
projects once they go into the control phase
 It can also serve as the platform for identifying new improvement
projects
 An indicator system that must be developed, tested, and
recalibrated as requirements and measurement systems change
Dashboard Attributes
45
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 How do you want the information displayed for your
indicators/measures?
 To what level do you want to “drill down” in the
information?
 How might you want to segment the information for
making critical decisions?
 Who should have access to the information?
Key Questions for Developing Your Dashboard
46
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What you learned during this section:
 Understand what a dashboard is
 Understand the questions to consider when developing a
dashboard
 Utilize a dashboard example to practice developing a
dashboard for your project
Summary of Section
47
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End of Lesson: Control – Process Control
Lean Six Sigma Training
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Control – Response Planning
Action Planning
Process Reviews
Lean Six Sigma Training
Measure ControlAnalyze ImproveDefine ControlControlImproveMeasure ControlControlAnalyze ImproveImproveDefine ControlControl
1
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 Understand the purpose and benefits of regular process
reviews
 Understand the role of the process owner in monitoring
and responding to process issues
By the end of this section, you will be able to:
Overview – Purpose – Objectives – Key Topics
2
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Process
Reviews
External
Environmental
Information
Internal
Environmental
Information
Satisfied
With Indicators?
– Yes –
Continue Control
Actions
Satisfied
With Indicators?
– No –
Plan & Implement
Improvement
Actions
Dashboard
Indicators
Process Reviews
3
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The Dashboard is the mechanism used to monitor and assess process
performance and determine what actions to take. During process review
meetings the process owner and team will review dashboard results and
determine what remedial actions need to be taken.
Process Reviews
4
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http://images.google.com/imgres?imgurl=http://www.ace.net.nz/miata/graphics/dashboard.gif&imgrefurl=http://www.ace.net.nz/miata/ogg1e.html&h=360&w=480&sz=126&tbnid=kiy13Mmo43QJ:&tbnh=94&tbnw=125&start=1&prev=/images?q=dashboard&hl=en&lr=&ie=UTF-8

http://images.google.com/imgres?imgurl=http://www.ace.net.nz/miata/graphics/dashboard.gif&imgrefurl=http://www.ace.net.nz/miata/ogg1e.html&h=360&w=480&sz=126&tbnid=kiy13Mmo43QJ:&tbnh=94&tbnw=125&start=1&prev=/images?q=dashboard&hl=en&lr=&ie=UTF-8

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When to review?
Process Owners hold regular (monthly, weekly) updates with their
Process Teams
 Receive updates on process performance
 Conduct question and answer session
 Perform joint problem solving
 Reinforcing success
Conducting Process Review Meetings
5
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How often should Process Owners review processes?
Formal audits/reviews conducted under the auspices of an
outside authority.
Formal meeting of Process Owner and Sub-Process
Owners. Used primarily when processes and sub processes
are performing within expected parameters and are meeting
or exceeding goals. Can occur within regular operations
reviews.
Less formal meeting of Process Owner and Sub-Process
Owners. Detailed review of sub-process dashboards and
performance.
Informal meeting with Sub-Process Owners. Detailed review
similar to the bi-weekly to monthly review. Used primarily
when sub-processes are critical to overall process cycle
times or sub-processes are performing poorly.
Quarterly to
Annually
Monthly to
Quarterly
Bi-weekly to
Monthly
As Needed
Process Reviews by Process Owner
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The timing of the review meetings is typically set at the discretion of the Process Owner and sometimes at the request of the team.
Some factors that affect the frequency of reviews are:
– Poorly performing processes/sub-processes (more frequent reviews)
– Processes/sub-processes cycle times (completion of a cycle provides better information mid-cycle)
– Availability of data (updated date is needed since last review meeting)

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Process review meetings should be structured to address these types of questions
and trigger the appropriate response to address gaps.
1. How is the process performing compared to the goals we set for it? Are there gaps?
Why or why not?
2. How are the sub-processes performing against the goals? Are they stable? Are they
capable? How should we respond?
3. How does our process compare to our competitors, or those “best in class”?
4. Are we maintaining gains made by our changes – e.g. Quick Wins, DMAIC or DFSS
projects?
5. Are we making changes in one part of our process that could impact another part of
our process or impact another process? Will it help or hurt? Are other project teams
making changes that impact our process?
Process Review Questions
7
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6. Are we measuring the right process indicators? Do they predict how well our process
outputs will satisfy customers? Are there better indicators we should be measuring?
7. Do we need to make changes to: Measures? Training? Staffing? Rewards?
Communications and feedback? Goals? Resource allocation? Action plans?
8. Are our work procedures being used? Why or why not?
9. What do we need to communicate to Leadership and to our process teams?
10. How can we recognize process contributions and successes?
Process Review Questions (Continued)
8
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Review Dashboards
 Sigmas
 Trends
 Specific Transactions
Perform Analysis
 Special/Common Causes (Stability)
 Root Causes
 Assess Capability
 Identify Next Steps
 Stabilization
 Management Emphasis & Inspection
 Project Scoping
 Training
 Advanced Statistical Tools
 QRB Report-Out
 Monthly (3rd week of each month)
 2 hours or as needed
Standardized Meeting Agendas with
Action Items
Process Owner Report-Outs
Champion
Process Owner(s)
MBB or Quality Analyst
Quality Leader, if appropriate
Customers, when appropriate
WHAT WHEN
HOW WHO
Example Guidelines for Process Review Meetings
9
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Consequences of not having an accountable process owner:
 Defects start to occur and remain unchecked
 Internal complaints go unaddressed
 Changing customer needs are not identified, let alone planned for
 Improvement projects aren’t identified or implemented on a timely basis
 Teamwork and morale deteriorate
Creating an environment of process accountability is important:
 Establishing what results and processes the Process Team will be accountable for (set goals)
 Explaining those expectations to the Process Team Leader and assuring understanding
 Giving the Process Team and Process Owner the tools, resources and information to
succeed
 Measuring and giving performance feedback (timely, specific, accurate to all levels of the
team)
 Applying judgment in evaluation of performance
Process Accountability
10
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What you learned during this section:
 The purpose and benefits of regular process reviews
 The role of the process owner in monitoring and
responding to process issues
Summary of Section
11
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Control – Response Planning
Action Planning
Process Reviews
Lean Six Sigma Training
Measure ControlAnalyze ImproveDefine ControlControlImproveMeasure ControlControlAnalyze ImproveImproveDefine ControlControl
12
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 Understand what response planning is
 Understand the course of action to take if out of control
issues should occur
 Troubleshoot to fix common and special cause
problems
By the end of this section, you will be able to:
Overview – Purpose – Objectives – Key Topics
13
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What is a Response Plan?
 A response plan is a documented method for how a process
owner/team should respond to any out-of-control conditions
that may occur in a process
 A good response plan will help ensure a timely and
appropriate response to processing problems as they occur,
thereby decreasing the risk of defects getting to the
customer
Response Plan
14
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Provides a response if the process should fail to meet customer
requirements for each variable (both the X and Y)
OwnerTimingActionMeasure
Specific
Action to be
Taken
Responsibility
to Take Action
Timing of Action
What is a Response Plan?
15
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All Xs and Ys that are being monitored must be included in the response plan.
For each measurement tracked, document the specific action to be taken when an out-of-control event occurs. The action that is taken will depend on the severity of the situation. If the situation is minor, specific corrective actions can be executed as planned. In the event of a serious problem, the process owner may need to become more involved. The timing of the response should also be included in the response plan. The plan should specify a time frame in which the team needs to respond for each out-of-control situation. Finally, the person responsible for each X and Y must be named in the response plan.
Be specific about action to be taken. Remember to operationally define any terms that may be ambiguous so that little confusion exists about the specific response needed.

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Looks
Like
Type
Common
Cause
Variation
Special
Cause
Variation
Action To Be Taken
Study individual
points or specific
cluster of points
to determine what
was reason for
difference
Make changes to sustain or
prevent special causes in the
future
Study all data
points collectively
to better
understand
sources of
variation
Make basic process change to
reduce common cause variation,
shift the average, or both
What should you do when you are not Satisfied
with Current Performance?
16
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Yes No Are there differences in the methods used by different employees?
Yes No Has there been a significant change in the internal/external
environment?
Yes No Is the process affected by predictable conditions?
Yes No Were any untrained employees involved in the process at any
time?
Yes No Has there been a change in the supplier of inputs to the process?
Yes No Has there been a change in policies or procedures?
Yes No Could the employees be afraid to report “bad news?”
Common Questions for Investigating an Out-Of-
Control Process
17
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Strategy for Eliminating Special Causes of Variation
 Work to get special causes signaled
quickly. Use early warning indicators
throughout your operation.
 Immediately search for cause when a
control chart gives a signal that a special
cause has occurred.
 Find out what was different on that
occasion.
 Keep asking – “Why”
 Do not make fundamental changes in the
process.
 Immediate remedy to contain any damage.
 Remove assignable cause and seek ways
to prevent that special cause from
recurring, or if results are good, retain that
lesson.
Timely Data
Search for
Cause
No Changes
Prevent and
Retain
18
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 Quick hit tools the team can use to analyze, troubleshoot, and diagnose
why a process is not performing up to requirements:
 Cause and Effect Diagram
 Value-Add/Non Value-Add Process Analysis
Process Step
Time (Minutes)
Value-Added
Nonvalue-added
Transferring
Retrieving Information
Reviewing
Prep/Set-up
Waiting for Help
Total
1 2 3 4 5 6 7 8 9 10 Total %Total
1 5 3 2 4 2 8 2 5 8 40 100%
4
5
16
8
40
4
10%
12.5%
40%
20%
10%
100%
3 7.5%
Problem
Statement
Main Category A
Main Category C
Main Category B
Potential
Root Cause
Cause
Cause
Cause
Potential
Root Cause
Potential
Root Cause
Tools for Quick Process Analysis, Diagnosis, and
Remedy
19
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What you learned during this section:
 What response planning is
 The course of action to take if out of control issues should
occur
 How to troubleshoot to fix common and special cause
problems
Summary of Section
20
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End of Lesson: Control – Response Planning
Lean Six Sigma Training
Measure ControlAnalyze ImproveDefine ControlControlImproveMeasure ControlControlAnalyze ImproveImproveDefine ControlControl
21
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Control – Project Documentation
Solution Replication and Closure
Communicate Project Outcomes
Document and Standardize
Lean Six Sigma Training
Measure ControlAnalyze ImproveDefine ControlControlImproveMeasure ControlControlAnalyze ImproveImproveDefine ControlControl
1
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 Understand the purpose and importance of standards to
effective Control
 Understand the use and importance of documenting
procedures
 Understand some of the keys to success and pitfalls with
writing procedures
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
2
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Definition
A documented method which identifies in detail all the steps
necessary to produce a product or meet a desired service
outcome.
They are a written agreement between the associate and the
company regarding how the job will be done.
Questions to ask when there is trouble with a Standard
Practice:
 Do we have a standard practice?
 Does the employee know the standard practice?
 Does the employee use the standard practice?
 Do we enforce the standard practice?
What are Standard Practices?
3
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 Everyone does things in a different way
 Some individual learning and improvement
 No group learning
 No accepted methods
Right Amount
 Best available methods are used
 Less wasted effort
 Group and individual learning
 Methods are improved
 People are frustrated
 Creativity is stifled
 No learning and improvement
 People fight the system, cut corners
Too Little
Too Much
Degrees of Standardization
4
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 Greater process variation
 Unhappy customers
 Lack of organizational learning
 Inability to hold the gains of
improvement efforts
 Lack of agreement among employees
on how to do the job
 Increased supervisory time and training
required
Costs of Not Standardizing
5
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Documentation is Critical to:
 Describe the flow of the process and standardize
procedures for operating the process
 Provide approved information for all current and
future employees who will need it
 Increase organizational learning and provide
training materials
 Use results in consistent operating procedures
and reduced process variation
 A necessary step to ensure that the learning
gained via Process Management is shared and
institutionalized
Why Document?
6
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A procedure is the documented sequence of
steps and other instructions necessary to carry
out an activity.
Documentation – Procedures
7
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What is a Procedure
Procedures are the details behind the activities documented on the business process map.
They serve as a method for every employee to gain an understanding in their context of the
process.
Purpose
To gather process skill in written form and to make it easier for everyone to do his/her work.
Questions To Ask When There Is Trouble with Procedures:
 Do we have a standard procedure?
 Does the employee know the standard procedure?
 Does the employee use the standard procedure? (Do we enforce the standard
procedure?)
In Summary…
 A procedure is a written agreement between an associate and the company regarding
how the job will be done.
Documentation – Procedures
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Pitfalls in Writing Procedures
 Not involving the affected persons in the creation of the procedures
 Not testing the procedures
 Omitting information
 Results to be obtained
 How to do a step
 Lowering the importance of procedures
 Not readily available
 Ignored by management
 No method to update procedures
 Obsolete procedures not destroyed
 Procedure documentation is not readily available
9
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Procedures Example
Standardized
Procedures
10
1.0 Activity: Conduct Market Analysis including Market Segmentation
 Description: Marketing group will gather market research information and conduct analysis
including identification of competitor intelligence and market segmentation.
 Tools:
 Various Market Research Reports
 Buying Process and Market Map Tools
 Timing:
 Within 3 weeks of market data availability
 Deliverable:
 Buying process to uncover key customer behavioral objectives that we want to
change and one which will give the maximum leverage in driving business
 Responsibility:
 Marketing Group taking the lead, but involving Sales
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Direct Ways
 Observation
 Ask associates directly, “What difficulties do you have following
the procedures? Are there any ways to make the work easier
and get the results we need?”
Indirect Ways
 Observe the last time the instruction was revised. If the instructions
have stayed the same for six months, do associates really use
them?
Checking Procedures
11
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What you learned during this section:
 The purpose and importance of standards to effective
Control
 The use and importance of documenting procedures
 Some of the keys to success and pitfalls with writing
procedures
Summary of Section
12
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Control – Project Documentation
Solution Replication and Closure
Communicate Project Outcomes
Document and Standardize
Lean Six Sigma Training
Measure ControlAnalyze ImproveDefine ControlControlImproveMeasure ControlControlAnalyze ImproveImproveDefine ControlControl
13
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 Understand key considerations to making communication
effective
 Understand the key elements of a Communication Plan
 Develop a Communication Plan
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
14
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The #1 Reason communications efforts fail to achieve the level of
understanding and influence intended is due to:
E-mails, large meetings, print announcements, and
even videos alone tend to:
 Be ignored
 Fail to engage recipients in active thinking
 Focus on “What’s in it for the company” rather
than credibly persuade “What’s in it for the
individual”
Method of Communication
Effective Communication Reviewed
15
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 Have a clear message
 Involve and engage your audience
 Be candid
 Demonstrate, don’t lecture
 Follow up
Communication of the improvement project message should be
80% Face to Face meetings
80%
20%
Face to Face
Company Wide
Project Communication Reviewed
16
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The Final Communication Plan should be developed once the documentation has
been completed. The basic components of the Communication Plan include:
Target Audience:
 Identify the project audience(s) – include internal and external stakeholder
groups.
The “What” (message):
 Assess information needs – determine what groups need to know, want to know,
and expect. NOTE: Utilize project resources only on communicating information
that contributes to success or where a lack of communication can lead to
failure.
 Identify key project messages, announcements, that need to be delivered on
the project outcomes.
When:
 Define when communications will be provided to the different stakeholder
groups.
Developing a Communication Plan – What to
Include
Communication
Plan
17
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The Method:
 Identify the best media and methods available to communicate, e.g. face to face
meetings, presentations, e-mail – remember people absorb information in different
ways.
Owner:
 Assign responsibilities for creating and delivering the various types of
communications. At this point, the process owner should be utilized to aid in
communicating the project results.
Required Approval:
 Document the approval process needed for any of the communications.
Feedback Loop:
 Create internal and external feedback loops to help evaluate the effectiveness of
communications.
Developing a Communication Plan – What to
Include
18
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Audience What When Method Owner Required
Approval
Feedback
Loop
Leadership  Overview of
Solutions
 Financial
Benefits
Project
End Date
(October
1st)
Leadership
Team Meeting
Black Belt /
Green Belt
and
Process
Owner
Sponsor Discussion
All employees Overview of
Solutions
October
15th
Gallery Walk
in Lunch
Room
Black Belt /
Green Belt
and Team
Sponsor Feedback
Cards
Operations Detailed
Solutions
October
6th
Meeting Black Belt /
Green Belt
and Team
Sponsor Discussion
Communication Plan Example
19
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What you learned during this section:
 The key considerations to making communication effective
 The key elements of a Communication Plan
 How to develop a Communication Plan
Summary of Section
20
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Control – Project Documentation
Solution Replication and Closure
Communicate Project Outcomes
Document and Standardize
Lean Six Sigma Training
Measure ControlAnalyze ImproveDefine ControlControlImproveMeasure ControlControlAnalyze ImproveImproveDefine ControlControl
21
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 Understand the process of replicating opportunities from
project solutions to other parts of the organization
 Understand the roles of the team and the process to
transition the project outcomes to the process owner
By the end of this section, you will be able to:
Overview – Objectives – Key Topics
22
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Replication opportunities are key learnings and documented
solutions that may be applicable to other processes or projects.
Looking for these opportunities can:
 Increase process improvement in other areas
 Reduce resource time solving similar problems
 Increase customer satisfaction in other areas of the business
Solution Replication Opportunities
23
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Look for replication
opportunities across the
organization that have similar
processes
Solution Replication Opportunities – Organization
24
Level 1 Processing Processing Processing
Chicago London Singapore
Process
Improvement
Accomplished
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Look for replication
opportunities across the “end to
end” process either upstream or
downstream
Level 3
Accounts Payable Process
Re
plic
ate
Process
Improvement
Accomplished
Re
pli
ca
te
Solution Replication Opportunities – Process
25
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1. Identify existing improvement efforts or problems within the
organization that relate to the process improvement outcomes of
your project.
2. Develop a project charter summarizing problems and goals of the
replication opportunity.
3. Develop a summary of the “just completed” project outcomes that
include the following deliverables:
 Lessons learned from project
 Project Charter
 Key metrics and how they link to potential replication opportunity
 All final project documentation (including control plan and dashboards
for use as best practice sharing)
 Action plan with owners to transition project outcomes to new process
Solution Replication Opportunities – Process
26
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Once the process is in control, the final step of the project team
is to transition the new process to the process owner.
The materials include:
All project outcomes
Project binders
Process monitoring plans
Training materials
Transition to Process Owner
27
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What Does Successful Transition Mean?
1. The process is completely integrated into the organization
and under control.
2. The process owner has approved all deliverables and has
agreed to take ownership of the project outcomes.
3. The process will be managed by the outcomes of the project,
including all monitoring techniques defined in the Control
Phase.
4. The project team is no longer needed to monitor and make
adjustments to the process.
28
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Black Belt /
Green Belt
 Ensure that an actionable, measurable and
comprehensive Monitoring Plan is defined, communicated
and implemented
 Jointly ensure that the handoff to the Process Owner is
successful
Process Owner
Sponsor
Project Team
 Commit to own the project outcomes and Monitoring Plan
 Designate the appropriate resources to manage the plan
 Ensure the project outcomes meet strategic objectives
 Jointly ensure that the handoff to the Process Owner is
successful
 Monitor the ongoing compliance to the Monitoring Plan
 Assist in designing and implementing the Monitoring Plan
 If applicable, members of the team should assist the
Process Owner in managing the ongoing Monitoring Plan
Roles of a Successful Transition
29
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Once Transition is Complete, the
Project Team Should Celebrate
Their Success
Celebrate Success
30
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What you learned during this section:
 The process of replicating opportunities from project
solutions to other parts of the organization
 The roles of the team and the process to transition the
project outcomes to the process owner
Summary of Section
31
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End of Lesson: Control – Project Documentation
Lean Six Sigma Training
Measure ControlAnalyze ImproveDefine ControlControlImproveMeasure ControlControlAnalyze ImproveImproveDefine ControlControl
32
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Lean Six Sigma
Green Belt
Simulated Project Workbook
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1Copyright © 2016 Acuity Institute LLC. All rights reserved.
Simulated Project Overview
Welcome to the Lean Six Sigma Green Belt Simulated Project.
At Acuity Institute we recognize that not every individual has the opportunity to complete an
actual Lean Six Sigma project while completing training, therefore we have created a real world
simulated project that takes students from the beginning to the end of a problem and solution.
The simulated project helps to build the students understanding of the concepts taught in
training and provides practical application of the tools. Students complete the course better
prepared to apply what they have learned in the real world.
The simulation is based on a hypothetical company (Simco International or “SI”) that faces many
of the same problems companies are dealing with today. The simulation is designed to illustrate
the entire business improvement effort through every phase of the Lean Six Sigma DMAIC
methodology. Students complete challenging exercises (project deliverables) which build on
previously learned tools and concepts taught in training. When complete, students have a
significant perspective on what true business improvement means and a tangible “project story”
that they can utilize throughout their process improvement journey.
There is no comparison to Acuity Institute’s Simulated Project in the marketplace.
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2Copyright © 2016 Acuity Institute LLC. All rights reserved.
Simulated Project Deliverables
Acuity Institute’s Lean Six Sigma Green Belt Simulated Project includes 32 project deliverables which are
introduced throughout the DMAIC Methodology.
Define Measure Analyze Improve Control
1. Project Charter
Development
2. SIPOC
3. As-Is Process
Mapping
4. Quick Win
Opportunities
5. Identify
Stakeholders
6. Develop
Stakeholder Map
7. Stakeholder
Management Plan
8. Communication
Plan
9. VOC Questions
10.CTQ Determination
11. Operational
Definitions
12. Data Collection
Planning
13. Histogram
14. Run Chart
15. Control Chart
16. Sigma
Performance
(DPMO)
17. Cause and Effect
Analysis
18. Lean Process
Analysis
19. Pareto
20. Box Plots
21. Correlation
Analysis
22. Regression
Analysis
23. Solution Selection
Matrix
24. Cost/Benefit
Analysis
25. Mitigating Risks
(FMEA)
26. Pilot Plan
27. Implementation
Planning
28. Storyboarding
29. Process
Monitoring Plan
30. Dashboard
Development
31. Response
Planning
32. Final Project
Storyboard
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3Copyright © 2016 Acuity Institute LLC. All rights reserved.
Simulated Project Templates
There are “blank” templates for you to complete for all 32 Simulated Project deliverables. The templates are
located in the “LSS GB_SI Project Templates” file folder. The templates are developed in common formats
(MS Word, MS Excel, or MS PowerPoint). To access the templates you will need to download this file folder
onto your computer.
For your reference, the name of the specific template that you are to complete is included in the instructions
of the project deliverable you are working on (example: “SI Project Template: Project Charter
Development_SI”). Please note, answers are provided as a reference point for many of the project
deliverables. In most cases we do not recommend updating your answers to match the answers provided. It
is important for your answers to be authentic to your experience as you complete the Simulated Project.
In addition to the project templates, the “LSS GB_SI Project Templates” file folder also contains the MS
Excel file “LSS SI Data File”. This file includes data to be used for various Simulated Project deliverables.
This course includes step by step instructions on how to complete these deliverables using both SigmaXL
and Minitab statistical analysis software.
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Lean Six Sigma – Simco International
Define Phase
1
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Simco International – Define Phase Deliverables
Deliverable Page Lesson
(Deliverable Originated From)
Project Charter Development 3 Project Charter
SIPOC 10 Process Definition
As-Is Process Mapping 15 Process Definition
Quick Win Opportunities 21 Process Definition
Identify Stakeholders 26 Stakeholder Management
Develop Stakeholder Map 31 Stakeholder Management
Stakeholder Management Plan 36 Stakeholder Management
Communication Plan 41 Stakeholder Management
VOC Questions 46 Voice of Customer
CTQ Determination 51 Voice of Customer
2
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Lean Six Sigma – Project Simulation
Project Charter Development
3
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Objective
 Develop key sections of a Project Charter for the Simco International (SI) Consumer Home
Loan project.
Instructions
 Utilize the information from the Simco International Overview information on the following
pages to draft the following Project Charter elements in the worksheet below:
 Problem Statement
 Project Goals
 Prepare your findings.
PROJECT DESCRIPTION
Problem
Statement
Project
Goals
Project Charter Development
SI Project Template: Project Charter Development_SI
4
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Simco International “SI” is a global financial services company
that conducts business in 84 different countries. During the
past 2 years SI has fallen from the 3rd largest financial services
provider to 6th in the world. The primary reason for this decline
is poor customer service which is driving customers to SI’s
competition.
SI recently formed multiple Lean Six Sigma teams to address
their customer service issues. In selecting the Lean Six Sigma
projects, SI studied their organization to learn where customer
expectations were being least met. Through this process they
learned that their Global Consumer Home Loan division was
performing well below customer expectations, therefore the
“Home Loan” Lean Six Sigma project was initiated.
Simco International Overview
5
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During the pre-project research, SI learned that it required an
average of 22 days to process home loans. Their competition
was completing the same process in 15 days. The process
time of 15 days was what home loan customers consider to be
Critical to Quality (CTQ). By not meeting the CTQ of 15 days,
SI estimated that it was losing $26.2 million in lost revenues
and $2.4 million in process inefficiencies per year.
The primary goal of the “Home Loan” Lean Six Sigma team is
to meet customer expectations for consumer home loans
throughout the world. If the team achieves this goal, they
believe that they will be well positioned to re-capture market
share, increase revenues, and improve customer satisfaction.
Simco International Overview
6
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Please Do Not Proceed Forward
Project Charter Development
7
For additional information
about this concept, see
Lesson 3 Project Charter, in
the Project Charter section.
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PROJECT DESCRIPTION
Business Case Increasing customer satisfaction will assist SI to re-capture market
share and ultimately increase revenues while improving process
efficiencies.
Problem Statement The Global Consumer Home Loan process cycle time currently
averages 22 days to complete, which exceeds customer expectation by
7 days.
Project Goals Reduce the Consumer Home Loan process cycle time by 32% by
September 1st. Improve process accuracy by 50%.
Estimated Benefits ($$) Increased revenues by $20 million and reduced process costs by
$650,000.
Project Scope Area of
Focus:
Consumer Home Loan processes in Singapore,
Chicago, and London.
Includes: Home Loan Customer, Real Estate Agent,
Underwriting, Credit Agency, processing of application,
and approval/denial of home loan
Excludes: Accounts Payables and Receivables, re-finance
processes
Start Point: When a customer requests a loan
Stop Point: Home loan acceptance or rejection package is
received by the customer
SI Project Charter
* Additional Project Charter information has been provided for your reference.
8
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PROJECT RESOURCES
Team Members Function in the Business Project Role
Time Dedicated to
Project (Hrs/Week)
John Davis VP of Operations Sponsor 1-2
Susan Terrell Performance Improvement Expert Master Black Belt 2
Steve McCaffrey Project Manager Black Belt / Green Belt 25
Ellen Mobley Finance Team Member 8-16
Rod Elway Operations SME Team Member 8-16
Erin Anderson Processing SME Team Member 8-16
Owen Atwater Sales SME Team Member 8-16
Additional Support Legal, Compliance, Information Technology, External Business Partners
PROJECT MILESTONES
Milestone Phase Start Date Completion Date
Define January 1st In Progress
Measure April 1st June 15th
Analyze June 1st June 30th
Improve July 1st July 31st
Control August 1st August 30th
Closure August 30th September 30th
SI Project Charter
* Additional Project Charter information has been provided for your reference.
9
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SIPOC
Lean Six Sigma – Project Simulation
10
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Objective
 Develop a SIPOC for the SI Consumer Home Loan process.
Instructions
 Complete the worksheet on the following page by utilizing the SI Overview
and Project Charter to develop the SIPOC.
 Prepare your findings.
SIPOC
SI Project Template: SIPOC_SI
11
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Utilize the SI Overview and Project Charter to complete each element of the SIPOC diagram.
Suppliers Inputs Process Outputs Customers
• • 1. • •
• • 2. • •
• • 3. • •
• • 4. • •
SIPOC
12
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Tips in SIPOC completion:
– Brainstorm information that is common to all home loan processes.
– Work backwards when completing the SIPOC.
– Start by identifying the customers first, then the process outputs.
– Identify the process start and stop points, then complete the remaining steps (you can identify more than the 4 high-level steps provided if needed).
– Finally, define the inputs and suppliers.
– The suppliers may be the customers as well.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Please Do Not Proceed Forward
SIPOC
13
For additional information
about this concept, see
Lesson 5 Process
Definition, in the SIPOC
section.
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Suppliers Inputs Process Outputs Customers
• Home Loan
Customer
• Application 1.Receive
Application
• Home Loan
Acceptance
Package
• Home Loan
Customer
• Real Estate
Agents
(Partners)
• Customer
Information
(Bank,
Employment,
etc.)
2.Complete
Application
Process
• Home Loan
Rejection
Package
• Real Estate
Agents
(Partners)
• Credit
Agency
• Credit Score 3.Complete
Underwriting
Process
• Loan
Products
4.Send
Notification
SI SIPOC
14
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As-Is Process Mapping
Lean Six Sigma – Project Simulation
15
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Objective
 Develop the as-is process map for the SI Consumer Home Loan process.
Instructions
 Using the description of the SI Consumer Home Loan process on the
following page, develop a deployment flow chart process map.
 Document each step in the process
 Align the steps with the personnel (deployment flow chart)
 Prepare your findings.
As-Is Process Mapping
SI Project Template: As Is Process Mapping_SI
16
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Primary People and Departments Involved in the SI Home Loan Process
 Home Loan Customer
 Real Estate Agent (RA)
Home Loan Process Flow
The SI Consumer Home Loan process starts when a customer contacts a Real Estate Agent (RA) to request a loan.
The RA’s are located across the country. The RA mails the customer a home loan application which is to be
completed and mailed back to the RA. The RA forwards the application to their local SI Mortgage Sales Associate
(MSA). The MSA’s are organized by region. The MSA forwards the application to an SI Loan Processor (LP). There
are LP’s in every local SI office. The LP reviews the application. The LP contacts the customer to request additional
information (bank info, employment info, etc.). The customer gathers the additional information and mails it to the LP.
With the additional information, the LP reviews the application and additional information to ensure that it is complete.
If there is missing or incorrect information, the LP contacts the customer to make the necessary corrections. If the
information is correct, the LP forwards the information to an SI Loan Officer (LO). There are LO’s in every local SI
office. Certain LO’s are responsible for managing each of the Local SI offices. The LO reviews the customer
information to determine the loan qualifications for final determination (acceptance or rejection). When this is
complete, the LO forwards the final determination to the LP. If the loan is accepted, the LP creates an SI “Home Loan
Acceptance Package”. If the loan is rejected, the LP creates an SI “Home Loan Rejection Package”. When this is
complete, the LP forwards the final determination package to the MSA. When the MSA receives the package they
schedule a meeting with the RA to review the final determination package. The RA reviews the final determination
package. The RA sends the final determination package to the customer. When the customer receives the final
determination package the SI Consumer Home Loan process is complete.
 SI Mortgage Sales Associate (MSA)
 SI Loan Processor (LP)
 SI Loan Officer (LO)
As-Is Process Mapping
17
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Notes:
Tips in sub-process mapping:
– Clarify the boundaries of the process first by identifying the start and stop points.
– Document (brainstorm) the steps/activities that occur during the process.
– Combine and eliminate any duplicate process steps that team members repeated.
– Organize steps into logical order using the direction of flow arrows.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Please Do Not Proceed Forward
As-Is Process Mapping
18
For additional information
about this concept, see
Lesson 5 Process
Definition, in the Process
Mapping section.
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Simco International “As-Is” Process Map (Page 1)
Re
al

Es
ta
te

Ag
en
t
(R
A)
SI
M
or
tg
ag
e
Sa
le
s
As
so
cia
te

( M
SA
)
SI
L
oa
n
Pr
oc
es
so
r
(L
P)
SI
L
oa
n
O
ffi
ce
r
(L
O
)
Ho
m
e
Lo
an

Cu
st
om
er
Contact RA to
request loan
Mail loan
application to
customer
Complete loan
application
Mail loan
application to
RA
Forward
application to
MSA
Forward
application to
LP
Review
application
Request
additional info
from customer
Gather
additional
information
Mail additional
information to
LP
Go to Step 12
(Next Page)
Review
application
and additional
information
1
2
3 4
5
6
7 8
9 10
11
SI As-Is Process Map
19
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Notes:
The above process map is known as a Deployment Flow Chart (DFC). A DFC is a type of process map. It is a graphical display of the actions and activities of a business process and their alignment with resources. DFC’s are particularly helpful when multiple and diverse groups have accountability in the process being managed.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Simco International “As-Is” Process Map (Page 2)
SI
L
oa
n
O
ffi
ce
r
(L
O
)
SI
L
oa
n
Pr
oc
es
so
r
(L
P)
SI
M
or
tg
ag
e
Sa
le
s
As
so
cia
te

(M
SA
)
Re
al

Es
ta
te

Ag
en
t
(R
A)
Ho
m
e
Lo
an

Cu
st
om
er
Go to Step 8
(Previous Page)
Is info
complete?
Forward
customer info
to LO
Determine
loan
qualification
Send final
determination
to LP
Is loan
accepted?
Create SI
Home Loan
acceptance
package
Create SI
Home Loan
rejection
package
Forward final
determination
package to
MSA
Schedule
meeting with
RA to review
final package
Review final
package
Send final
package to
customer
Receive final
determination
package
Yes
No No
Yes
12
13
14 15
16
17
18 19
20
21 22
23
SI As-Is Process Map
20
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Quick Win Opportunities
Lean Six Sigma – Project Simulation
21
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Objective
 Identify Quick Wins for the SI Consumer Home Loan process.
Instructions
 Using the worksheet on the following page, utilize the outcomes of your
charter, SIPOC, and process mapping to identify quick wins.
 Brainstorm a few opportunities for quick improvements to the process
 Complete the remaining sections by answering “Yes” or “No” to each
category
 Decide on the Quick Wins based on your analysis
 Prepare your findings.
Quick Win Opportunities
SI Project Template: Quick Win Opportunities_SI
22
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Quick Win
Opportunity
Easy to
Implement
Reversible Fast to
Implement
Within
Team’s
Control
Cheap to
Implement
Quick Win Opportunities
23
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Please Do Not Proceed Forward
Quick Win Opportunities
24
For additional information
about this concept, see
Lesson 5 Process
Definition, in the Quick Wins
section.
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Quick Win
Opportunity
Easy to
Implement
Reversible Fast to
Implement
Within
Team’s
Control
Cheap to
Implement
Have application
mailed directly to
LP from Customer
Yes Yes Yes Yes Yes
Have application
completed with LP via
phone, remove paper
application
Yes Yes No Yes No
Gather additional
information from
customer via phone
Yes Yes Yes Yes Yes
Remove MSA Position
from process
Yes No No No Yes
Have LP determine
loan qualification
No Yes No No Yes
SI Quick Win Opportunities
25
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Identify Stakeholders
Lean Six Sigma – Project Simulation
26
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Objective
 Develop a list of Stakeholders for the SI Consumer Home Loan project.
Instructions
 Using the list of potential stakeholders below, complete the worksheet on the following page
to identify the actual stakeholders of the SI process
 Identify stakeholders by name
 Determine the stakeholder type: external, internal, or supplier
 Prepare your findings.
Name Function / Organization Name Function / Organization
John Davis VP, Operations/Sponsor Susan Terrell MBB
Jason Cody IT Systems Analyst Sean White Compliance Officer
Vince Joseph VP, Accounts Payable Lori Emtman Equifax Credit Agency
Home Loan Customers NA Chris Simms VP, Sales
Barbara Kissinger VP, Processing Steven O’Malley Loan Officer
Sandra Williams Real Estate Agent, Chicago Lynn Washington Real Estate Agent, Los Angeles
Xiu Len Real Estate Agent, Singapore Mark Clayton Real Estate Agent, London
Petra Lubiwitz VP, Underwriting Davin Carter Accounts Payable Rep
Identify Stakeholders
SI Project Template: Identify Stakeholders_SI
27
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Identify Stakeholders
Stakeholder Name Type
28
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Please Do Not Proceed Forward
Identify Stakeholders
29
For additional information
about this concept, see
Lesson 6 Stakeholder
Management, in the
Stakeholder Analysis
section.
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Stakeholder Name Type
Lori Emtman (Equifax Credit Agency) Supplier
Sandra Williams (Real Estate Agent, Chicago) Supplier/External
Xiu Len (Real Estate Agent, Singapore) Supplier/External
Mark Clayton (Real Estate Agent, London) Supplier/External
Lynn Washington (Real Estate Agent, Los Angeles) Supplier/External
John Davis (VP, Operations/Sponsor) Internal
Chris Simms (VP, Sales) Internal
Barbara Kissinger (VP, Processing) Internal
Steven O’Malley (Loan Officer) Internal
Petra Lubiwitz (VP, Underwriting) Internal
Jason Cody (IT Systems Analyst) Internal
Vince Joseph (VP, Accounts Payable) Internal
Susan Terrell (MBB) Internal
Sean White (Compliance Officer) Internal
Davin Carter (Accounts Payable Rep) Internal
Home Loan Customers External
SI Stakeholders
30
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Develop Stakeholder Map
Lean Six Sigma – Project Simulation
31
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Objective
 Develop a Stakeholder Map for the SI Consumer Home Loan project.
Instructions
 Using the summary developed by the team on their current perceptions of the stakeholders
on the project, complete the stakeholder map on the following page.
 Prepare your findings.
Name Influence Impact of Change Perception on Project
1. Lori Emtman Low Low Has heard about it and wants problem solved
2. Sandra Williams Medium High Has been calling team members about project status
3. Xiu Len Low High Not aware of project or Lean Six Sigma
4. Mark Clayton Medium High Has resisted change in the past
5. John Davis High High Very supportive and engaged in project
6. Chris Simms High Medium Understands need, wants to know more
7. Barbara Kissinger High High Has expressed dissatisfaction with scope
8. Steven O’Malley Medium Medium Wanted to participate on team
9. Petra Lubiwitz Low Medium Was involved in drafting original charter
10.Home Loan Customers Low High Not aware of project
Develop Stakeholder Map
SI Project Template: Develop Stakeholder Map_SI
32
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In
flu
en
ce
Impact of change
H
M
L
L M H
Enthusiast
Neutral
Opponent
Develop Stakeholder Map
33
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Please Do Not Proceed Forward
Develop Stakeholder Map
34
For additional information
about this concept, see
Lesson 6 Stakeholder
Management, in the
Stakeholder Analysis
section.
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In
flu
en
ce
Impact of change
H
M
L
L M H
1
2
3
4
56 7
8
9 10
Enthusiast
Neutral
Opponent
SI Stakeholder Map
35
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Stakeholder Management Plan
Lean Six Sigma – Project Simulation
36
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Objective
 Develop a Stakeholder Management Plan for the SI Consumer Home Loan
project.
Instructions
 Using the Stakeholder Map from the previous deliverable, use the worksheet
on the following page to develop a management plan for the stakeholders
you select.
 Which stakeholders need to be influenced?
 How will this occur?
 Prepare your findings.
Stakeholder Management Plan
SI Project Template: Stakeholder Management Plan_SI
37
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Stakeholder Objective Actions
Stakeholder Management Plan
38
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Please Do Not Proceed Forward
Stakeholder Management Plan
39
For additional information
about this concept, see
Lesson 6 Stakeholder
Management, in the
Stakeholder Analysis
section.
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Stakeholder Objective Actions Completion
Date
Owner
#5 Utilize influence
with #7 to help
gain support
Review charter
Discuss help needed in working
with #7
March 2nd Steve M.
#7 Gain support in
processing
department
Help sell project
to associates
Schedule one-on-one meeting to
review project charter and scope
Discuss communication support
needed in Processing
Gain commitment for support
March 3rd Erin A.
#4 Overcome
resistance to
project initiative
Schedule one-on-one meeting to
review project charter
 Take feedback and initiate follow-
up meeting
Escalate if necessary
March 15th Rod E.
#3, #6. #10 Gain
understanding of
project
Schedule one-on-one meeting to
review project charter
 Take feedback and initiate follow-
up meeting
Gain commitment for support
March 15th Steve M.
SI Stakeholder Management Plan
* Additional Stakeholder Management Plan information has been provided for your reference.
40
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Communication Plan
Lean Six Sigma – Project Simulation
41
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Objective
 Develop a Communication Plan for the SI Consumer Home Loan project.
Instructions
 Use the worksheet on the following page to develop a communication plan for
the target audience(s) for the project.
 Who needs to receive communication about the project?
 What kind of information will be communicated?
 When/how often will communication take place?
 What will be the method of delivery?
 Prepare your findings.
Communication Plan
SI Project Template: Communication Plan_SI
42
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Audience What When Method
Communication Plan
43
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Please Do Not Proceed Forward
Communication Plan
44
For additional information
about this concept, see
Lesson 6 Stakeholder
Management, in the
Communication Planning
section.
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Audience What When Method Owner Required
Approval
Feedback
Loop
Champion /
Sponsor
 Status Reports
 Milestones
 Obstacles /
Resources
 Scope Reviews
Bi-Monthly / As
Needed
 Face to Face Project Lead MBB Minutes
from
Meeting
Stakeholders  Status Reports
 Milestones
Completion of
Phases / As
Needed
 Face to Face
 Memo’s/Email
Owners on
Stakeholder
Management
Plan
Champion /
Sponsor /
MBB
Minutes
from
Meeting
MBB  Status Reports
 Milestones
 Obstacles /
Resources
 Scope Reviews
Bi-Monthly / As
Needed
 Face to Face Project Lead None Minutes
from Team
Meeting
Legal /
Compliance /
Finance / IT
 Status Reports As Needed  Face to Face
 Department
Meeting
Project Lead MBB Minutes
from
Meeting
Organization
(Sales,
Processing,
Underwriting)
 Project Results End of Project  Email
 Town Hall
Project Team Champion /
Sponsor /
MBB
Surveys
Customers /
Credit Agencies
 Update New
Process
End of Project  Update Materials Real Estate
Agents
Champion /
Sponsor /MBB
Surveys
SI Communication Plan
* Additional Communication Plan information has been provided for your reference.
45
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VOC Questions
Lean Six Sigma – Project Simulation
46
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Objective
 Develop a list of VOC questions for the SI Consumer Home Loan process.
Instructions
 Using the worksheet on the following page, develop a list of VOC questions
you feel will gather information on SI’s customer requirements.
 Prepare your findings.
VOC Questions
SI Project Template: VOC Questions_SI
47
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Brainstorm 5-7 SI VOC Questions (Be as detailed as possible)
VOC Questions
VOC Questions
1.
2.
3.
4.
5.
6.
7.
48
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Defining the right questions to ask customers can be difficult. Being too broad with questions can lead to non-measurable responses. However, being too specific can direct customer responses and lead to narrow issue identification. Make sure your questions have a good mix of open-ended (i.e. summary or free form) and close-ended (i.e. rating 1 through 4) criteria.
Another pit fall in collecting VOC is to utilize the questions to collect data on the existing process. Try and avoid questions that will identify the current performance or roles within the process. This information will be determined in the Measure Phase.

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Please Do Not Proceed Forward
VOC Questions
49
For additional information
about this concept, see
Lesson 7 Voice of
Customer, in the What is
Voice of Customer section.
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Example SI VOC Questions
1. How long did it take for you to receive your Home Loan?
2. On a scale of 1-4, with 1 being completely dissatisfied and 4 being completely
satisfied, how satisfied were you with this time?
3. What would have been an acceptable timeframe to receive your Home Loan?
4. On a scale of 1-4, with 1 being completely dissatisfied and 4 being completely
satisfied, how satisfied were you with your overall Home Loan experience?
5. Why did you rate your experience this way?
6. Did SI fail to meet your service expectations in any way?
SI VOC Questions
50
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CTQ Determination
Lean Six Sigma – Project Simulation
51
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Objective
 Identify “Customer Needs” and “CTQ’s” for the SI Consumer Home Loan
process.
Instructions
 Using the worksheet on the following page, identify the remaining “Customer
Needs” from the “Customer Issues” listed. Once complete, translate the
“Customer Needs” into “CTQs”.
 Prepare your findings.
CTQ Determination
SI Project Template: CTQ Determination_SI
52
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Translate the following VOC into CTQ’s
Segment Customer Issue Customer Need CTQ
External It takes too long to process loans Reduce loan
processing
cycle time
15 day loan
processing cycle
time
External There are too many errors on the
final determination packages
Reduce errors on
final determination
package
100% accuracy on
final determination
package
External It is very difficult to reach anyone at
SI
Internal No clear roles and responsibilities to
who owns the loan process
Internal Too much time is spent reviewing the
application
CTQ Determination
53
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Tips in CTQ determination:
– Document the need, not the solution (this is done in the Improve Phase).
– Use measurable terms.
– Avoid words like “should” or “must”.
Utilize the previous pages as a guide for CTQ determination.

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Please Do Not Proceed Forward
CTQ Determination
54
For additional information
about this concept, see
Lesson 7 Voice of
Customer, in the How to
Translate VOC into CTQs
section.
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Segment Customer Issue Customer Need CTQ
External It takes too long to process loans Reduce loan
processing
cycle time
15 day loan
processing cycle
time
External There are too many errors on the
final determination packages
Reduce errors on
final determination
package
100% accuracy on
final determination
package
External It is very difficult to reach anyone at
SI
First call contact
with SI personnel
100% first call
contact
Internal No clear roles and responsibilities to
who owns the loan process
Clearly defined and
documented roles
and responsibilities
100%
documentation of
roles and
responsibilities
Internal Too much time is spent reviewing the
application
Reduce loan
reviewing time
2 day loan
reviewing time
SI CTQ Determination
55
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Lean Six Sigma – Simco International
Measure Phase
1
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Simco International – Measure Phase Deliverables
Deliverable Page Lesson
(Deliverable Originated From)
Operational Definitions 3 Data Collection
Data Collection Planning 8 Data Collection
Histogram 13 Describe & Display Data
Run Chart 20 Describe & Display Data
Control Chart 27 Describe & Display Data
Sigma Performance (DPMO) 34 Baseline Performance
2
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Operational Definitions
Lean Six Sigma – Project Simulation
3
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Objective
 Develop operational definitions for some of the measures identified in the X/Y
Matrix for the Consumer Home Loan process.
Instructions
 Using the worksheet on the following page, develop specific operational
definitions for each measure identified.
 Prepare your findings.
Operational Definitions
SI Project Template: Operational Definitions_SI
4
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% of Defective Incoming
Applications
Application Cycle Time per
Department Segment
# of Final Determination
Packages with Errors
Total Loan Processing Cycle
Time
Operational DefinitionPerformance Measure
Operational Definitions
5
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Please Do Not Proceed Forward
Operational Definitions
6
For additional information
about this concept, see
Lesson 10 Data Collection,
in the Operational
Definitions section.
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Performance Measure Operational Definition
Total Loan Processing Cycle
Time
The total time in business days from when a customer submits the
application to when the loan is mailed by location
# of Final Determination
Packages with Errors
The total # of final determination packages that have an inaccurate
field by defect type (name, address, loan #, loan amount, loan
duration, city, state) from total packages processed
% of Defective Incoming
Applications
The total # of applications that are inaccurate (by type) or
incomplete when received from the customer divided by the total #
of applications received
Application Cycle Time Per
Department Segment
The total time in business days to complete the application
processing per department (RA, MSA, LP, LO)
SI Operational Definitions
7
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Data Collection Planning
Lean Six Sigma – Project Simulation
8
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Copyright © 2016 Acuity Institute LLC. All rights reserved.
Objective
 Develop a data collection plan for the SI Consumer Home Loan process.
Instructions
 Using the worksheet on the following page, develop a data collection plan for
the performance measures previously identified.
 Prepare your findings.
Data Collection Planning
SI Project Template: Data Collection Planning_SI
9
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Measure Type of
Measure
Type of
Data
Operational Definitions Sampling Display
Total Loan
Processing
Cycle Time
The total time in days from when a
customer submits the application to
when the loan is mailed by location;
Time stamp calculation in SI database
SI Database: Sample
of 105 Loans (1/1-
3/31) from Chicago,
London, Singapore
Histogram,
Run Chart,
Control Chart
# of Final
Determination
Packages with
Errors
The total # of final determination
packages that have an inaccurate field
by defect type (name, address, loan #,
loan amount, loan duration, city, state)
from total packages processed; Check
Sheet completed by associates
Real Time: Sample of
240 Determination
Packages (April) from
Chicago, London,
Singapore
Pareto
% of Defective
Incoming
Applications
The total # of applications that have an
inaccurate field (by type) or incomplete
when received from the customer
divided by the total # of applications
received; Check Sheet completed by
associates
Real Time: Sample of
240 Applications
(April) from Chicago,
London, Singapore
Pareto
Application
Cycle Time Per
Department
Segment
The total time in days to complete the
application processing per department
(RA, MSA, LP, LO); Time stamp
calculation in SI database
SI Database: Sample
of 105 Applications
(1/1-3/31) from
Chicago, London,
Singapore
Histogram,
Run Chart,
Control Chart;
Pareto by
department
Data Collection Planning
10
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Please Do Not Proceed Forward
Data Collection Planning
11
For additional information
about this concept, see
Lesson 10 Data Collection,
in the Collecting Data
section.
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Measure Type of
Measure
Type of
Data
Operational Definitions Sampling Display
Total Loan
Processing
Cycle Time
Output Continuous The total time in days from when a
customer submits the application to
when the loan is mailed by location;
Time stamp calculation in SI database
SI Database: Sample
of 105 Loans (1/1-
3/31) from Chicago,
London, Singapore
Histogram,
Run Chart,
Control Chart
# of Final
Determination
Packages with
Errors
Output Discrete The total # of final determination
packages that have an inaccurate field
by defect type (name, address, loan #,
loan amount, loan duration, city, state)
from total packages processed; Check
Sheet completed by associates
Real Time: Sample of
240 Determination
Packages (April) from
Chicago, London,
Singapore
Pareto
% of Defective
Incoming
Applications
Input Discrete The total # of applications that have an
inaccurate field (by type) or incomplete
when received from the customer
divided by the total # of applications
received; Check Sheet completed by
associates
Real Time: Sample of
240 Applications
(April) from Chicago,
London, Singapore
Pareto
Application
Cycle Time Per
Department
Segment
Process Continuous The total time in days to complete the
application processing per department
(RA, MSA, LP, LO); Time stamp
calculation in SI database
SI Database: Sample
of 105 Applications
(1/1-3/31) from
Chicago, London,
Singapore
Histogram,
Run Chart,
Control Chart;
Pareto by
department
SI Data Collection Plan
12
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Histogram
Lean Six Sigma – Project Simulation
13
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Objective
 Create a Histogram from the Chicago Total Loan Processing Cycle
Time data and conduct initial analysis.
Instructions
 Open up the Excel file “LSS SI Data File”.
The data set is in the worksheet “Chicago Cycle Time”. Utilize your
statistical software to display and describe the variation in the process
using a “Histogram.”
 When completed, answer the following questions:
1. How would you describe the variation in the data?
2. What conclusions can you draw from the Histogram and
descriptive statistics?
Histogram
SI Project Template: Histogram_SI
14
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Please Do Not Proceed Forward
Histogram
15
For additional information
about this concept, see
Lesson 11 Describe and
Display Data, in the
Understanding Variation
section.
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Histogram
SigmaXL Instructions
 Open up the Excel file “LSS SI Data File”.
 The data set is in the worksheet “Chicago Cycle Time”.
 We want to display and describe the variation in the process.
Follow these instructions to create the Histogram:
1. Select “SigmaXL” from the toolbar in Excel
2. Select “Graphical Tools” from the menu
3. Select “Histograms & Descriptive Statistics” from the menu
4. Select “Use entire data table” from the data window
5. Select “Next”
6. Select “Numeric Data Variables (Y)” to move the Chicago Loan Processing Cycle
Time data set into the function window
7. Select “OK”
8. SigmaXL will generate a new worksheet “Hist Descript”
16
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SI Histogram
SigmaXL Results
* Additional information is provided (which we do not always use) when you perform this analysis.
17
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Notes:
SI Team Analysis
– Large variation and spread in cycle time
– No data points are below the CTQ of 15 days
– 2 loans took considerably more time to complete than the rest of the data set
– Data is non-normal as identified by the p-value less than 0.05 from the Anderson-Darling Normality Test

Copyright © 2016 Acuity Institute LLC. All rights reserved.
SI Histogram
Minitab Instructions
 Open up the Excel file “LSS SI Data File”.
 The data set is in the worksheet “Chicago Cycle Time”.
 We want to display and describe the variation in the process.
Follow these instructions to create the Histogram:
1. Copy the entire data set including the header
2. Open the Minitab software
3. Paste the data set into Column 1 (C1) of Minitab
4. Select “Paste as a single column”
5. Select “OK”
6. Select “Stat” from the toolbar
7. Select “Basic Statistics” from the menu
8. Select “Graphical Summary” from the menu
9. Highlight “C1 Chicago Loan” from the menu
10. Click on “Select”
11. Select “OK”
12. Minitab will generate a summary with the Histogram and descriptive statistics for
Chicago Cycle Time
18
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SI Histogram
Minitab Results
* Additional information is provided (which we do not always use) when you perform this analysis.
19
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Notes:
SI Team Analysis
– Large variation and spread in cycle time
– No data points are below the CTQ of 15 days
– 2 loans took considerably more time to complete than the rest of the data set
– Data is non-normal as identified by the p-value less than 0.05 from the Anderson-Darling Normality Test

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Run Chart
Lean Six Sigma – Project Simulation
20
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Objective
 Create a Run Chart from the Chicago Total Loan Processing Cycle Time
data and conduct initial analysis.
Instructions
 Open up the Excel file “LSS SI Data File”.
The data set is in the worksheet “Chicago Cycle Time”. Utilize your statistical
software to display and describe the variation in the process using a “Run”
chart.
 When completed, answer the following questions:
1. How would you describe the variation in the data?
2. What conclusions can you draw from the Run Chart?
Run Chart
SI Project Template: Run Chart_SI
21
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Please Do Not Proceed Forward
Run Chart
22
For additional information
about this concept, see
Lesson 11 Describe and
Display Data, in the Types
of Variation section.
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Run Chart
SigmaXL Instructions
 Open up the Excel file “LSS SI Data File”.
 The data set is in the worksheet “Chicago Cycle Time”.
 We want to display and describe the variation in the process.
Follow these instructions to create the Run Chart:
1. Select “SigmaXL” from the toolbar in Excel
2. Select “Graphical Tools” from the menu
3. Select “Run Chart” from the menu
4. Select “Use entire data table” from the data window
5. Select “Next”
6. Select “Numeric Data Variables (Y)” to move the Chicago Loan Processing Cycle
Time data set into the function window
7. Select “Show Mean”
8. Select “OK”
9. SigmaXL will generate a new worksheet “Run Chart”
23
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SI Run Chart
SigmaXL Results
24
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Notes:
SI Team Analysis
– Large variation and spread in cycle time
– 2 loans took considerably more time to complete than the rest of the data set
– Cycle time is not trending upwards or downwards

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Run Chart
Minitab Instructions
 Open up the Excel file “LSS SI Data File”.
 The data set is in the worksheet “Chicago Cycle Time”.
 We want to display and describe the variation in the process.
Follow these instructions to create the Run Chart:
1. Copy the entire data set including the header
2. Open the Minitab software
3. Paste the data set into Column 1 (C1) of Minitab
4. Select “Paste as a single column”
5. Select “OK”
6. Select “Stat” from the toolbar
7. Select “Quality Tools” from the menu
8. Select “Run Chart” from the menu
9. Select “Subgroups across rows of” from the menu
10. Click inside the data box
11. Highlight “C1 Chicago Loan” from the menu
12. Click on “Select”
13. Select “OK”
14. Minitab will generate a summary with the Run Chart and descriptive statistics for Chicago Cycle
Time
25
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SI Run Chart
Minitab Results
* Additional information is provided (which we do not always use) when you perform this analysis.
26
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Notes:
SI Team Analysis
– Large variation and spread in cycle time
– 2 loans took considerably more time to complete than the rest of the data set
– Cycle time is not trending upwards or downwards

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Control Chart
Lean Six Sigma – Project Simulation
27
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Objective
 Create a Control Chart from the Singapore Total Loan Processing
Cycle Time data and conduct initial analysis.
Instructions
 Open up the Excel file “LSS SI Data File”.
The data set is in the worksheet “Singapore Cycle Time”. Utilize your
statistical software to display and describe the variation in the process
using an “Individuals & Moving Range” control chart.
 When completed, answer the following questions:
1. How would you describe the variation in the data?
2. What conclusions can you draw from the Individuals & Moving
Range control chart and special cause tests?
Control Chart
SI Project Template: Control Chart_SI
28
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Please Do Not Proceed Forward
Control Chart
29
For additional information
about this concept, see
Lesson 11 Describe and
Display Data, in the Types
of Variation section.
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When you see this symbol, please do not continue forward in the materials.

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Control Chart
SigmaXL Instructions
 Open up the Excel file “LSS SI Data File”.
 The data set is in the worksheet “Singapore Cycle Time”.
 We want to display and describe the variation in the process.
Follow these instructions to create the Control Chart:
1. Select “SigmaXL” from the toolbar in Excel
2. Select “Control Charts” from the menu
3. Select “Individuals & Moving Range” from the menu
4. Select “Use entire data table” from the data window
5. Select “Next”
6. Select “Numeric Data Variables (Y)” to move Singapore Cycle Time data set into the
function window
7. Select “Tests for Special Causes”
8. Select “OK”
9. SigmaXL will generate a new worksheet “Indiv & MR Charts“
30
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SI Control Chart
SigmaXL Results
31
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SI Team Analysis
– Process is not in statistical control due to failing one of the tests for special cause variation (4 out of 5 points more than 1 standard deviation from center line, on one side of center line)

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Control Chart
Minitab Instructions
 Open up the Excel file “LSS SI Data File”.
 The data set is in the worksheet “Singapore Cycle Time”.
 We want to display and describe the variation in the process.
Follow these instructions to create the Control Chart:
1. Copy the entire data set including the header
2. Open the Minitab software
3. Paste the data set into Column 1 (C1) of Minitab
4. Select “Paste as a single column”
5. Select “OK”
6. Select “Stat” from the toolbar
7. Select “Control Charts” from the menu
8. Select “Variables Charts for Individuals” from the menu
9. Select “I-MR” menu
10. Highlight “C1 Singapore Cycle Time” from the menu
11. Click on “Select”
12. Select “I-MR Options…”
13. Select “Tests”
14. Select “Perform all tests for special causes” from the drop down menu
15. Select “OK”
16. Select “OK”
17. Minitab will generate the I-MR Charts for Singapore Cycle Time
32
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SI Control Chart
Minitab Results
33
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Notes:
SI Team Analysis
– Process is not in statistical control due to failing one of the tests for special cause variation (4 out of 5 points more than 1 standard deviation from center line, on one side of center line)

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Sigma Performance (DPMO)
Lean Six Sigma – Project Simulation
34
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Objective
 Calculate Sigma Performance for Chicago Final Determination Package accuracy.
Instructions
 Utilize the information below and complete the fields for Units, Defects, and Opportunities.
 Total number of loans = 240
 Total number defects = 72
 Total number of critical fields to customer = 7
 Calculate the DPMO and Sigma for accuracy. Sigma can be found on the abridged sigma
table on the following page.
 Prepare your findings.
DPMO = 1M
Units x Opportunities
Defects
_______ Units
_______ Defects
_______ Opportunities
_____________ DPMO
_____________ Sigma
( )
( ) ( )=
Sigma Performance (DPMO)
SI Project Template: Sigma Performance_SI
35
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Yield Sigma DPMO Yield Sigma DPMO
99.99966% 6.00 3.4 98.60966% 3.70 13,903
99.99946% 5.90 5.4 98.21356% 3.60 17,864
99.99915% 5.80 8.5 97.72499% 3.50 22,750
99.99867% 5.70 13 97.12834% 3.40 28,717
99.99793% 5.60 21 96.40697% 3.30 35,930
99.99683% 5.50 32 95.54345% 3.20 44,565
99.99519% 5.40 48 94.52007% 3.10 54,799
99.99277% 5.30 72 93.31928% 3.00 66,807
99.98922% 5.20 108 91.92433% 2.90 80,757
99.98409% 5.10 159 90.31995% 2.80 96,800
99.97674% 5.00 233 88.49303% 2.70 115,070
99.96631% 4.90 337 86.43339% 2.60 135,666
99.95166% 4.80 483 84.13447% 2.50 158,655
99.93129% 4.70 687 81.99519% 2.40 184,060
99.90323% 4.60 968 78.81446% 2.30 211,855
99.86501% 4.50 1,350 75.80363% 2.20 241,964
99.81342% 4.40 1,866 72.57469% 2.10 274,253
99.74449% 4.30 2,555 69.14625% 2.00 308,538
99.65330% 4.20 3,467 65.54217% 1.90 344,578
99.53388% 4.10 4,661 61.79114% 1.80 382,089
99.37903% 4.00 6,210 57.92597% 1.70 420,740
99.18025% 3.90 8,198 53.98278% 1.60 460,172
98.92759% 3.80 10,724 50.00000% 1.50 500,000
Abridged Sigma Table
Abridged Process Sigma Conversion Table
36
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Sheet1

Yield Sigma DPMO Yield Sigma DPMO

99.99966% 6.00 3.4 98.60966% 3.70 13,903

99.99946% 5.90 5.4 98.21356% 3.60 17,864

99.99915% 5.80 8.5 97.72499% 3.50 22,750

99.99867% 5.70 13 97.12834% 3.40 28,717

99.99793% 5.60 21 96.40697% 3.30 35,930

99.99683% 5.50 32 95.54345% 3.20 44,565

99.99519% 5.40 48 94.52007% 3.10 54,799

99.99277% 5.30 72 93.31928% 3.00 66,807

99.98922% 5.20 108 91.92433% 2.90 80,757

99.98409% 5.10 159 90.31995% 2.80 96,800

99.97674% 5.00 233 88.49303% 2.70 115,070

99.96631% 4.90 337 86.43339% 2.60 135,666

99.95166% 4.80 483 84.13447% 2.50 158,655

99.93129% 4.70 687 81.99519% 2.40 184,060

99.90323% 4.60 968 78.81446% 2.30 211,855

99.86501% 4.50 1,350 75.80363% 2.20 241,964

99.81342% 4.40 1,866 72.57469% 2.10 274,253

99.74449% 4.30 2,555 69.14625% 2.00 308,538

99.65330% 4.20 3,467 65.54217% 1.90 344,578

99.53388% 4.10 4,661 61.79114% 1.80 382,089

99.37903% 4.00 6,210 57.92597% 1.70 420,740

99.18025% 3.90 8,198 53.98278% 1.60 460,172

98.92759% 3.80 10,724 50.00000% 1.50 500,000

Sheet2

Sheet3

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Please Do Not Proceed Forward
Sigma Performance (DPMO)
37
For additional information
about this concept, see
Lesson 12 Baseline
Performance, in the
Sigma section.
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Baseline Performance
240 Units
72 Defects
7 Opportunities
42,857 DPMO
3.2 Sigma
DPMO = 1M Units x Opportunities
Defects
( 240 )
=
( 72 )
( 7 )
SI Sigma Performance
38
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Lean Six Sigma – Simco International
Analyze Phase
1
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Simco International – Analyze Phase Deliverables
Deliverable Page Lesson
(Deliverable Originated From)
Cause and Effect Analysis 3 Root Cause Analysis
Lean Process Analysis 8 Lean Process Analysis
Pareto 18 Graphical Data Analysis
Box Plots 25 Graphical Data Analysis
Correlation Analysis 32 Graphical Data Analysis
Regression Analysis 39 Statistical Data Analysis
2
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Cause and Effect Analysis
Lean Six Sigma – Project Simulation
3
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Objective
 Develop cause and effect relationships for the SI Consumer Home Loan
process problem statement.
Instructions
 Complete the “Process” component of the Fishbone diagram on the following
page.
 Then, circle all significant Potential Root Causes in the entire Fishbone.
 Prepare your findings.
Cause and Effect Analysis
SI Project Template: Cause and Effect Analysis_SI
4
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Loan Processing Cycle Time in
Chicago Takes an Average of
31 Days to Complete
People
Process
Staffing not aligned with
peak volume
It is difficult to handle the volume
at different times throughout the year
The LP does not know which
forms to use for different loan types
The Loan Processor often
does the job of the Loan Officer
Waiting for information
from another department
Unclear number of loans
required to complete per day
Internal mail department only
picks up and delivers once a day
Work load for Loan Processors and
Loan Officers is inconsistent
It is difficult for the LP to
understand the
LO final determination
Waiting for applications and information in the mail
The LP was not trained on
different loan types
Work load for Loan Processors and
Loan Officers is inconsistent
Cause and Effect Analysis
5
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Notes:
The above cause-and-effect diagram was generated by the project team for the Chicago loan processing cycle time.
Note the problem statement (primary effect) that is being analyzed at the head of the diagram and the corresponding major categories (or “bones”) of Process and People.
Take a moment to review the causes and effects for each category and their relationships to the overall problem.
Utilize your understanding of the process to create potential root causes. Remember to ask the question “Why?”.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Please Do Not Proceed Forward
Cause and Effect Analysis
6
For additional information
about this concept, see
Lesson 14 Root Cause
Analysis, in the Root Cause
Analysis section.
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Loan Processing Cycle Time in
31 Days to Complete
People
Chicago Takes an Average of
Process
Staffing not aligned with
peak volume
It is difficult to handle the volume
at different times throughout the year
The LP does not know which
forms to use for different loan types
The Loan Processor often
does the job of the Loan Officer
Requirement to send
everything by regular mail
No Process Controls
Waiting for information
from another department
Unclear how long it should
take to perform
individual tasks
Unclear number of loans
required to complete per day
Internal mail department only
picks up and delivers once a day
One mail person
on staff
Work load for Loan Processors and
Loan Officers is inconsistent
It is difficult for the LP to
understand the
LO final determination
Budget only
allows for one
mail person
Waiting for applications and information in the mail
The LP was not trained on
different loan types
Work load for Loan Processors and
Loan Officers is inconsistent
SI Cause and Effect Analysis
7
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Lean Process Analysis
Lean Six Sigma – Project Simulation
8
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Lean Process Analysis
Objective
 Complete a Lean Analysis for the SI Consumer Home Loan process.
Instructions
 Using the descriptions below and the “SI Deployment Flowchart with Time” (on the following
pages), complete the Lean Analysis worksheet (value-add/non value-add) on the following
page.
 Calculate the total value-add and non value-add steps, total time, and % of total time.
 Prepare your findings.
Value-Added Questions:
1.Change the process?
2.Customer recognizes the value?
3.Done right the first time?
4.Required by law or regulation?
Non Value-Added Examples:
– Waiting – Storing – Counting
– Inspecting – Recording – Obtaining
– Approvals – Reviewing – Copying
– Reworking – Filing – Tracking
SI Project Template: Lean Process Analysis_SI
9
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Lean Process Analysis
Process Step 1 2 3 4 5 6 7 8 9 1
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
2
0
2
1
2
2
2
3
Total
Steps
Total
Time
% of
Total
Time
Time (Hours)
Value-Added
Non Value-
Added
Delay
Set-up
Inspection
Transporting
Rework
10
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SI Cycle Time Per Process Step
Process
Step
Cycle Time
(Hours)
1 1/2
2 32
3 2
4 32
5 8
6 8
7 1
8 1/2
Process
Step
Cycle Time
(Hours)
9 2
10 32
11 1
12 1/2
13 1/2
14 1
15 1/2
16 1/2
Process
Step
Cycle Time
(Hours)
17 1
18 1
19 8
20 1/2
21 1
22 32
23 1/2
11
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Lean Process Analysis – SI As-Is Process
Map
SIMCO International “As-Is” Process Map (Page 1)
R
ea
l
Es
ta
te
Ag
en
t
(R
A)
SI
M
or
tg
ag
e
Sa
le
s
As
so
ci
at
e
(M
SA
)
SI
L
oa
n
Pr
oc
es
so
r
(L
P)
SI
L
oa
n
O
ffi
ce
r
(L
O
)
H
om
e
Lo
an
C
us
to
m
er
Contact RA to
request loan
Mail loan
application to
customer
Complete loan
application
Mail loan
application to
RA
Forward
application to
MSA
Forward
application to
LP
Review
application
Request
additional info
from customer
Gather
additional
information
Mail additional
information to
LP
Go to Step 12
(Next Page)
Review
application
and additional
information
1
2
3 4
5
6
7 8
9 10
11
12
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Lean Process Analysis – SI As-Is Process
Map
SIMCO International “As-Is” Process Map (Page 2)
SI
L
oa
n
O
ffi
ce
r
(L
O
)
SI
L
oa
n
Pr
oc
es
so
r
(L
P)
SI
M
or
tg
ag
e
Sa
le
s
As
so
ci
at
e
(M
SA
)
R
ea
l
Es
ta
te
Ag
en
t
(R
A)
H
om
e
Lo
an
C
us
to
m
er
Go to Step 8
(Previous Page)
Is info
complete?
Forward
customer info
to LO
Determine
loan
qualification
Send final
determination
to LP
Is loan
accepted?
Create SI
Home Loan
acceptance
package
Create SI
Home Loan
rejection
package
Forward final
determination
package to
MSA
Schedule
meeting with
RA to review
final package
Review final
package
Send final
package to
customer
Receive final
determination
package
Yes
No No
Yes
12
13
14 15
16
17
18 19
20
21 22
23
13
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Please Do Not Proceed Forward
Lean Process Analysis
14
For additional information
about this concept, see
Lesson 15 Lean Process
Analysis, in the Lean
Process Analysis and
Measures section.
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When you see this symbol, please do not continue forward in the materials.

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SI Lean Process Analysis
Process Step 1 2 3 4 5 6 7 8 9 1
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
2
0
2
1
2
2
2
3
Total
Steps
Total
Time
% of
Total
Time
Time (Hours) 23 166 Hrs 100%
Value-Added x x x x x x 6 6 Hrs 4%
Non Value-Added x x x x x x x x x x x x x x x x x 17 160 Hrs 96%
Delay x 1 .5 Hrs .5%
Set-up x x 2 2 Hrs 1%
Inspection x x 2 1 Hour .5%
Transporting x x x x x x x 7 144.5 Hrs 87%
Rework x x x x x 5 12 Hrs 7%
15
See SI Cycle Time Per Process Step
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SI Lean Process Analysis
Simco International “As-Is” Process Map (Page 1)
Re
al
Es
ta
te

Ag
en
t
(R
A)
SI
M
or
tg
ag
e
Sa
les

As
so
cia
te

(M
SA
)
SI
L
oa
n
Pr
oc
es
so
r
(L
P)
SI
L
oa
n
Of
fic
er
(L
O)
Ho
m
e
Lo
an

Cu
sto
m
er
Contact RA to
request loan
Mail loan
application to
customer
Complete loan
application
Mail loan
application to
RA
Forward
application to
MSA
Forward
application to
LP
Review
application
Request
additional info
from customer
Gather
additional
information
Mail additional
information to
LP
Go to Step 12
(Next Page)
Review
application
and additional
information
1
2
3 4
5
6
7 8
9 10
11
X = Non Value-Added Step
X
X
X
X
X
X
X
X
X
16
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SI Lean Process Analysis
Simco International “As-Is” Process Map (Page 2)
SI
L
oa
n
O
ffi
ce
r
(L
O
)
SI
L
oa
n
Pr
oc
es
so
r
(L
P)
SI
M
or
tg
ag
e
Sa
le
s
As
so
cia
te

(M
SA
)
Re
al

Es
ta
te

Ag
en
t
(R
A)
Ho
m
e
Lo
an

Cu
st
om
er
Go to Step 8
(Previous Page)
Is info
complete?
Forward
customer info
to LO
Determine
loan
qualification
Send final
determination
to LP
Is loan
accepted?
Create SI
Home Loan
acceptance
package
Create SI
Home Loan
rejection
package
Forward final
determination
package to
MSA
Schedule
meeting with
RA to review
final package
Review final
package
Send final
package to
customer
Receive final
determination
package
Yes
No No
Yes
12
13
14 15
16
17
18 19
20
21 22
23
X
X
X X
X
XXX
X = Non Value-Added Step
17
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Process Stratification and Analysis – Pareto
Lean Six Sigma – Project Simulation
18
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Objective
 Create a Pareto Chart from the # of Final Determination Packages with Errors for
London and conduct initial analysis.
Instructions
 Open up the Excel file “LSS SI Data File”.
The data set is from a check sheet and is located in the worksheet “# of Package
Errors”. Utilize your statistical software to display and describe the variation in the
process using a Pareto Chart.
 When completed, answer the following questions:
1. How would you describe the variation in the data?
2. What conclusions can you draw from the Pareto?
 Prepare your findings.
Pareto
SI Project Template: Pareto_SI
19
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Please Do Not Proceed Forward
Pareto
20
For additional information
about this concept, see
Lesson 16 Graphical Data
Analysis, in the Analyzing
Data Graphically section.
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Pareto
SigmaXL Instructions
 Open up the Excel file “LSS SI Data File”.
 The data set is from a check sheet and is located in the worksheet “# of Package
Errors”.
 We want to display and describe the variation in the process.
Follow these instructions to create the Pareto:
1. Click “SigmaXL” from the toolbar in Excel
2. Select “Graphical Tools” from the menu
3. Select “Basic Pareto Chart” from the menu
4. Select “Use entire data table” from the data window
5. Click “Next”
6. Select “Pareto Category (X)” to move Application Fields data set into the function
window
7. Select “Optional Numeric Count (Y)” to move Number of Errors data set into the
function window
8. Select “Finish”
9. SigmaXL will generate a new worksheet “Pareto”
21
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SI Pareto
SigmaXL Results
22
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Notes:
SI Team Analysis
– Loan Amount and Name account for 86% of the total final determination package errors.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Pareto
Minitab Instructions
The following are the instructions to complete this deliverable using Minitab.
 Open up the Excel file “LSS SI Date file”
 The data set is from a check sheet and is located in the worksheet “# of Package Errors”
 We want to display and describe the variation in the process
Follow these instructions to create the Pareto:
1. Copy the entire data set including the headers
2. Open the Minitab software
3. Paste the data set into Minitab
4. Select “Stat” from the toolbar
5. Select “Quality Tools” from the menu
6. Select “Pareto Chart” from the menu
7. Click inside the data box for “Defects or attribute data in:”
8. Highlight “C1 Application Fields” from the menu
9. Click on “Select”
10. Highlight “C2 Numbers of Errors” from the menu
11. Click on “Select” to add to “Frequencies in”
12. Select “OK”
13. Minitab will generate a Pareto Chart for # of Package Errors
23
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SI Pareto
Minitab Results
24
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Notes:
SI Team Analysis
– Loan Amount and Name account for 86% of the total final determination package errors.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Process Stratification and Analysis – Box Plots
Lean Six Sigma – Project Simulation
25
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Notes:

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Objective
 Create a Box Plot from the SI Loan Processing Cycle Time from all 3 locations and
conduct initial analysis.
Instructions
 Open up the Excel file “LSS SI Data File”.
The data set is located in the worksheet “Cycle Time for 3 Locations”. We want to
display and describe the variation in the process. Utilize your statistical software to
display and describe the variation in the process using a Box Plot.
 When completed, answer the following questions:
1. How would you describe the variation in the data?
2. What conclusions can you draw from the Box Plot?
 Prepare your findings.
Box Plots
SI Project Template: Box Plots_SI
26
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Please Do Not Proceed Forward
Box Plots
27
For additional information
about this concept, see
Lesson 16 Graphical Data
Analysis, in the Analyzing
Data Graphically section.
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Copyright © 2016 Acuity Institute LLC. All rights reserved.
Box Plots
SigmaXL Instructions
 Open up the Excel file “LSS SI Data File”.
 The data set is located in the worksheet “Cycle Time for 3 Locations”.
 We want to display and describe the variation in the process.
Follow these instructions to create the Pareto:
1. Click “SigmaXL” from the toolbar in Excel
2. Select “Graphical Tools” from the menu
3. Select “Boxplots” from the menu
4. Select “Use entire data table” from the data window
5. Click “Next”
6. Select “Numeric Data Variables (Y)” 3 times to move cycle time data sets into the
function window
7. Select “Show Legend”
8. Select “OK”
9. SigmaXL will generate a new worksheet “Boxplot”.
28
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SI Box Plots
SigmaXL Results
29
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Notes:
SI Team Analysis
Chicago has the highest average between the 3 sites
Chicago has 2 significant outliers
– Both Chicago and Singapore have significant variation
– London variation is less than the other sites and the average cycle time is below the CTQ of 15 days

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Box Plots
Minitab Instructions
 Open up the Excel file “LSS SI Data File”.
 The data set is located in the worksheet “Cycle Time for 3 Locations”.
 We want to display and describe the variation in the process.
Follow these instructions to create the Box Plot:
1. Copy the entire data set including the headers
2. Open the Minitab software
3. Paste the data set into Minitab
4. Select “Graph” from the toolbar
5. Select “Boxplot” from the menu
6. Select “Simple” from the menu under “Multiple Y’s”
7. Select “OK”
8. Click inside the data box for “Graph variables”
9. Highlight “C1 Chicago Cycle Time” from the menu
10. Click on “Select” (repeat for C2 and C3)
11. Select “OK”
12. Minitab will generate a Boxplot for Cycle Time for 3 Locations
30
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SI Box Plots
Minitab Results
31
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Presenter
Presentation Notes
Notes:
SI Team Analysis
Chicago has the highest average between the 3 sites
Chicago has 2 significant outliers
– Both Chicago and Singapore have significant variation
– London variation is less than the other sites and the average cycle time is below the CTQ of 15 days

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Correlation Analysis
Lean Six Sigma – Project Simulation
32
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Notes:

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Objective
 Create a Scatter Diagram from data to determine correlation and conduct initial
analysis.
Instructions
 Open up the Excel file “LSS SI Data File”.
The data set is in the worksheet “Singapore LP Cycle Time”. We want to determine if
there is a strong relationship (correlation) between the Singapore LP Cycle Time (X)
and the Singapore Total Cycle Time (Y). Utilize your statistical software to perform
correlation.
 When completed, answer the following question:
1. How would you interpret the graph?
 Prepare your findings.
Correlation Analysis
SI Project Template: Correlation Analysis_SI
33
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Notes:

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Please Do Not Proceed Forward
Correlation Analysis
34
For additional information
about this concept, see
Lesson 16 Graphical Data
Analysis, in the Analyzing
Data Graphically section.
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Presentation Notes
When you see this symbol, please do not continue forward in the materials.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Correlation Analysis
SigmaXL Instructions
 Open up the Excel file “LSS SI Data File”.
 The data set is in the worksheet “Singapore LP Cycle Time”.
 We want to determine if there is a strong relationship (correlation) between the
Singapore LP Cycle time (X) and the Singapore Total Cycle Time (Y).
Follow these instructions to perform correlation:
1. Click “SigmaXL” from the toolbar in Excel
2. Select “Graphical Tools” from the menu
3. Select “Scatter Plots” from the menu
4. Select “Use entire data table” from the data window
5. Click “Next“
6. Select the first measure “Singapore Total Cycle Time”
7. Select “Singapore Total Cycle Time” for your Numeric Response (Y)
8. Select “Singapore LP Cycle Time” for your Numeric Predictor (X1)
9. Click “OK”
10. SigmaXL will generate a new worksheet “Scatterplot”.
35
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Notes:

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SI Correlation Analysis
SigmaXL Results
36
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Presentation Notes
Notes:
SI Team Analysis
– A possible positive correlation exists between the Singapore LP Cycle Time and the Singapore Total Cycle Time

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Correlation Analysis
Minitab Instructions
 Open up the Excel file “LSS SI Data File”.
 The data set is in the worksheet “Singapore LP Cycle Time”.
 We want to determine if there is a strong relationship (correlation) between the Singapore LP
Cycle time (X) and the Singapore Total Cycle Time (Y).
Follow these instructions to perform correlation:
1. Copy the entire data set including the headers
2. Open the Minitab software
3. Paste the data set into Minitab
4. Select “Graph” from the toolbar
5. Select “Scatterplot” from the menu
6. Select “With Regression” from the menu
7. Select “OK”
8. Click inside the data box for “Y variables”
9. Highlight “C2 Singapore Total Cycle Time” from the menu
10. Click on “Select” to move under “Y variables”
11. Highlight “C3 Singapore LP Cycle Time” from the menu
12. Click on “Select” to move under “X variables”
13. Select “OK”
14. Minitab will generate a Scatterplot for Singapore LP Cycle Time
37
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Notes:

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SI Correlation Analysis
Minitab Results
38
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Presentation Notes
Notes:
SI Team Analysis
– A possible positive correlation exists between the Singapore LP Cycle Time and the Singapore Total Cycle Time

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Regression Analysis
Lean Six Sigma – Project Simulation
39
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Notes:

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Objective
 Conduct Regression Analysis from data and conduct root cause analysis.
Instructions
 Open up the Excel file “LSS SI Data File”.
The data set is in the worksheet “Singapore LP Cycle Time”. We want to determine if
there is a statistical correlation between the Singapore LP Cycle Time (X) and the
Singapore Total Cycle Time (Y). Utilize your statistical software to perform Regression
Analysis.
 When completed, answer the following questions:
1. How would you interpret the output of the analysis?
2. What conclusions can you draw from the p-value and the R2 value?
 Prepare your findings.
Regression Analysis
SI Project Template: Regression Analysis_SI
40
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Notes:

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Please Do Not Proceed Forward
Regression Analysis
41
For additional information
about this concept, see
Lesson 17 Statistical Data
Analysis, in the Hypothesis
Testing Tools section.
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Presenter
Presentation Notes
When you see this symbol, please do not continue forward in the materials.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Regression Analysis
SigmaXL Instructions
 Open up the Excel file “LSS SI Data File”.
 The data set is in the worksheet “Singapore LP Cycle Time”.
 We want to see if there is a statistical correlation between the Singapore LP Cycle time (X) and
the Singapore Total Cycle Time (Y).
Follow these instructions to perform Regression:
1. Select “SigmaXL” from the toolbar in Excel
2. Select “Statistical Tools” from the menu
3. Select “Regression” from the menu
4. Select “Multiple Regression” from the menu
5. Select “Use entire data table” from the data window
6. Select “Next”
7. Select the first measure “Singapore Total Cycle Time”
8. Select “Numeric Response (Y)” to move Singapore Total Cycle Time data set into the function
window
9. Select “Continuous Predictors (X)” 1 time to move the cycle time data set for Singapore LP Cycle
Time into the function window
10. Select “OK”
11. SigmaXL will generate a new worksheet “Multiple Regression“ and a second worksheet “Mult
Reg Residuals”
42
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SI Regression Analysis
SigmaXL Results
* Additional information is provided (which we do not always use) when you perform this analysis.
43
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Notes:
SI Team Analysis
– R-Sq = 47.1% of the variation in the process output is accounted for by the model
– P-Value < 0.05, the Singapore LP Cycle Time does influence the Singapore Total Cycle Time Copyright © 2016 Acuity Institute LLC. All rights reserved. Regression Analysis Minitab Instructions  Open up the Excel file “LSS SI Data File”.  The data set is in the worksheet “Singapore LP Cycle Time”.  We want to see if there is a statistical correlation between the Singapore LP Cycle time (X) and the Singapore Total Cycle Time (Y). Follow these instructions to perform Regression: 1. Copy the entire data set including the headers 2. Open the Minitab software 3. Paste the data set into Minitab 4. Select “Stat” from the toolbar 5. Select “Regression” from the menu 6. Select “Fitted Line Plot…” from the menu 7. Click inside the data box for “Response “(Y)” 8. Highlight “C2 Singapore Total Cycle Time” from the menu 9. Click on "Select” 10. Click inside the data box for “Predictor “(X)” 11. Highlight “C3 Singapore LP Cycle Time” from the menu 12. Click on "Select” 13. Select “OK” 14. Minitab will generate a Fitted Line Plot and summary for Singapore Cycle Time 44 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. SI Regression Analysis Minitab Results * Additional information is provided (which we do not always use) when you perform this analysis. 45 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: SI Team Analysis - R-Sq = 47.1% of the variation in the process output is accounted for by the model - P-Value < 0.05, the Singapore LP Cycle Time does influence the Singapore Total Cycle Time Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Six Sigma – Simco International Improve Phase 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Simco International – Improve Phase Deliverables Deliverable Page Lesson (Deliverable Originated From) Solution Selection Matrix 3 Identify & Select Solutions Cost/Benefit Analysis 8 Financial Impact of Solutions Mitigating Risks (FMEA) 13 Risk Planning and Testing Pilot Plan 18 Risk Planning and Testing Implementation Planning 23 Implement Solution Storyboarding 28 Implement Solution 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Solution Selection Matrix Lean Six Sigma – Project Simulation 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Objective  Complete a Solution Selection Matrix for the SI Consumer Home Loan process. Instructions  Utilize the worksheet on the following page to complete the Solution Selection Matrix.  Rate each solutions impact on the criteria using the following scale (1=low impact, 3=medium impact, 9=high impact). Impact for each criteria should be calculated as follows:  Sigma Impact = rate the solutions impact on improving sigma  Time Impact = rate the solutions impact on time investment needed to implement  Cost / Benefit Impact = rate the solutions impact of financial benefits over costs  Other Impacts = rate the solutions impact to other criteria (organization, morale, etc)  Multiply each rating by the weighting for the criteria and document the totals for each solution.  Rank the solutions from highest to lowest and select the solutions for the SI process.  Prepare your findings. Solution Selection Matrix SI Project Template: Solution Selection Matrix_SI 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Criteria Total Rank Weight Solutions Rating Score Rating Score Rating Score Rating Score Have LP determine loan qualification Develop email/internet based system to exchange information and remove paperwork Combine LP and MSA processes to eliminate MSA from loan processing Develop online application submission with mandatory fields and accuracy checks Identify and track process segment requirements on processing time and accuracy 3 2 3 1 Sigma Impact Time Impact Cost/ Benefit Impact Other Impacts Solution Selection Matrix Worksheet Develop training program on different types of loans for LP 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Please Do Not Proceed Forward Solution Selection Matrix 6 For additional information about this concept, see Lesson 20 Identify and Select Solutions, in the Select Solutions section. This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes When you see this symbol, please do not continue forward in the materials. Copyright © 2016 Acuity Institute LLC. All rights reserved. Criteria Total Rank Weight Solutions Rating Score Rating Score Rating Score Rating Score Develop training program on different types of loans for LP 3 9 9 18 1 3 3 3 33 5 Have LP determine loan qualification 9 27 3 6 3 9 1 1 43 3 Develop email/internet based system to exchange information and remove paperwork 9 27 1 2 9 27 9 9 65 1 Combine LP and MSA processes to eliminate MSA from loan processing 3 9 9 18 3 9 3 3 39 4 Develop online application submission with mandatory fields and accuracy checks 3 9 1 2 9 27 9 9 47 2 Identify and track process segment requirements on processing time and accuracy 1 3 3 6 1 3 3 3 15 6 Sigma Impact Time Impact Cost/ Benefit Impact Other Impacts 3 2 3 1 SI Solution Selection Matrix 7 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Cost/Benefit Analysis Lean Six Sigma – Project Simulation 8 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Objective  Complete a Cost/Benefit Analysis for the SI Consumer Home Loan process. Instructions  Using the costs and benefits below, utilize the worksheet on the following page to complete the Cost/Benefit Analysis.  Total all costs and benefits and calculate net benefits  Would you recommend implementing the solutions based on the results?  Prepare your findings. Implementation Costs Project Benefits Hardware – SI Loan System development = $300,000 Temporary Headcount Eliminated – 15 people @ all 3 sites = $10,000/year Hardware – 50 PC’s with Processing Software = $1,200/each MSA/LO Processing Time Eliminated – 5 FTE’s @ all 3 sites = $35,000/year Consultant Training – 2 IT Consultants @ 24hrs/week for 3 weeks (includes all 3 sites) = $100/hr. Improved cycle time – interest accrued earlier by 80% of total loan volume = $125,000 Training Site – Training facility @ 3 days/week for 3 weeks = $200/day Reduction in Mail Cost – elimination of application and loan mail costs by 80% of loan volume ($10 per approved loan @ ~ 3,152 loans) = $31,520 Increased customer retention revenue ~ 300 customers annually @ 10% interest on $200,000 home loan = $6MM Cost/Benefit Analysis SI Project Template: Cost Benefit Analysis_SI 9 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Implementation Costs: Measurement Variable Cost Estimate Total Hardware Hardware Consultant Training Training Site Total Costs Benefits: Measurement Variable Benefit Estimate Total Temporary Headcount Eliminated MSA/LO Processing Time Eliminated Improved Cycle Time Mail Cost Reduction Increased Customer Retention Total Benefits Net Benefit (equals total benefits, less costs) Cost/Benefit Analysis 10 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Please Do Not Proceed Forward Cost/Benefit Analysis 11 For additional information about this concept, see Lesson 21 Financial Impact of Solutions, in the Cost/Benefit section. This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes When you see this symbol, please do not continue forward in the materials. Copyright © 2016 Acuity Institute LLC. All rights reserved. Implementation Costs: Measurement Variable Cost Estimate Total Hardware SI Loan System Development $300,000 $300,000 Hardware 50 PC’s with Processing Software $1,200/each $60,000 Consultant Training 2 IT Consultants @ 24hrs./week for 3 weeks (includes all 3 sites) $100/hr. $14,400 Training Site Training facility @ 3 days/week for 3 weeks $200/day $1,800 Total Costs $376,200 Benefits: Measurement Variable Benefit Estimate Total Temporary Headcount Eliminated 15 people @ all 3 sites $10,000/year $150,000 MSA/LO Processing Time Eliminated 5 FTE’s @ all 3 sites $35,000/year $175,000 Improved Cycle Time Interest accrued earlier by 80% of total loan volume $125,000/year $125,000 Mail Cost Reduction Elimination of application and loan mail costs by 80% of loan volume ($10 per approved loan @ ~ 3,152 loans) $31,520/year $31,520 Increased Customer Retention 300 customers annually @ 10% interest on $200K home loan $6MM $6MM Total Benefits ~$6.5MM Net Benefit (equals total benefits, less costs) ~$6.1MM SI Cost/Benefit Analysis 12 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Mitigating Risks (FMEA) Lean Six Sigma – Project Simulation 13 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Objective  Complete a Failure Modes and Effects Analysis for the SI Consumer Home Loan process. Instructions  Utilize the worksheet on the following page to complete an FMEA.  Complete the possible Effect, Cause and Current Controls for each Error listed.  Rate each error for the listed criteria using the following scale (1=low, 3=medium, 9=high). Each criteria should be calculated as follows:  Frequency = a value reflecting the likelihood that the error will occur  Severity = a value reflecting the degree of adversity the errors effect  Detection = a value reflecting the ease or likelihood that the error will be visible or noticed (a score of 9 is not good in this case)  Multiply all of the values and document the totals for each error (Risk Priority Number or RPN).  Document any countermeasures to eliminate and/or monitor (recommended actions).  Prepare your findings. Mitigating Risks (FMEA) SI Project Template: Mitigating Risks_SI 14 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. LP sends final package to customer LP determines loan qualification LP reviews paper application Customer completes online application Item or Process Step Final package is not sent Loan is incorrectly denied Application is missing information System does not accept application Recommended Action R P N D E T E C T I O N Current Controls O C C U R R E N C E Potential Cause(s) S E V E R I T Y Potential Effect(s) of Failure Potential Failure Mode Mitigating Risks (FMEA) Worksheet 15 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Please Do Not Proceed Forward Mitigating Risks (FMEA) 16 For additional information about this concept, see Lesson 22 Risk Planning and Testing, in the Plan for Risks section. This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes When you see this symbol, please do not continue forward in the materials. Copyright © 2016 Acuity Institute LLC. All rights reserved. LP sends final package to customer LP determines loan qualification LP reviews paper application Customer submits application online Item or Process Step  Add procedure for mailing, internal audit 273Manual Check3Loan package is sitting in outgoing mail 3Customer does not receive loan package Final package is not sent  Internal audit, document procedures 819Minimal1Inaccurate qualification was completed 9Customer is denied loan Loan is incorrectly denied  None (low RPN)91Manual Check1Customer failed to provide all information 9Application is sent back to customer, delay in processing Application is missing information  Auto notification of system down  Manual submission of application 2439Minimal3System is down9Customer unable to submit online application System does not accept application Recommended Action R P N D E T E C T I O N Current ControlsO C C U R R E N C E Potential Cause(s) S E V E R I T Y Potential Effect(s) of Failure Potential Failure Mode SI Mitigating Risks (FMEA) 17 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Pilot Plan Lean Six Sigma – Project Simulation 18 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Objective  Complete a Pilot Plan for the SI Consumer Home Loan process. Instructions  Utilize the worksheet on the following page to complete the Pilot Plan.  The following parameters have been determined by the team:  Both the new SI Home Loan Process and SI Loan System will be piloted  The pilot will be conducted in the Chicago site  The pilot will take place in the first 2 weeks of July  5 LP’s will be trained on the new process and system  Northwest Regional customers will have their loans processed with the new process and system  Prepare your findings. Pilot Plan SI Project Template: Pilot Plan_SI 19 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. 4. What materials are required to conduct the training? 3. Who will deliver the training? 2. Who will be trained? 1. When and where will the training take place? Training Plan 4. How is Pilot failure defined? 3. How is Pilot success defined? 2. Who and how will the data be collected? 1. What will be measured (CTQs)? Data Collection Plan 4. Who will be involved in the pilot? 3. Where will the pilot take place (business, location)? 2. When will the pilot occur (dates from start to stop)? 1. What processes will be piloted? Scope of Pilot Description (be as detailed as possible) Task/Deliverable Pilot Plan 20 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Please Do Not Proceed Forward Pilot Plan 21 For additional information about this concept, see Lesson 22 Risk Planning and Testing, in the Test Solutions section. This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes When you see this symbol, please do not continue forward in the materials. Copyright © 2016 Acuity Institute LLC. All rights reserved. Task/Deliverable Description (be as detailed as possible) Scope of Pilot 1. What processes will be piloted? The new SI Consumer Home Loan process and Loan System 2. When will the pilot occur (dates from start to stop)? July 1 – July 15 3. Where will the pilot take place (business, location)? Chicago site 4. Who will be involved in the pilot? Northwest Regional customers, 5 LP’s, LP Manager, Northwest Regional RA Data Collection Plan 1. What will be measured (CTQs)?  15 day loan processing cycle time  100% accuracy on final determination packages  2 day loan reviewing time 2. Who and how will the data be collected? Project team will collect data using SI Loan System for cycle time CTQ’s and tick sheets for accuracy CTQ 3. How is Pilot success defined? Meet or exceed CTQ’s 4. How is Pilot failure defined? Do not meet 2 or more CTQ’s Training Plan 1. When and where will the training take place? June 21 – 23 in the Chicago Training Room 2. Who will be trained? 5 LP’s, LP Manager, Northwest Regional RA 3. Who will deliver the training? Project Team on SI Consumer Home Loan process, IT Consultants on Loan System 4. What materials are required to conduct the training? To-Be Process Map, Standard Operating Procedures, Roles and Responsibilities, PC’s installed with Loan System, LCD projector SI Pilot Plan 22 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Implementation Planning Lean Six Sigma – Project Simulation 23 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Objective  Develop an Implementation Plan for the SI Consumer Home Loan process. Instructions  Using the worksheet on the following page, develop an implementation plan for the new process.  Who will be responsible for leadership of the implementation?  Document any barriers you feel the team will have to overcome in order for implementation to be successful and actions required to mitigate them.  Develop the training plan: – Who will need to be trained in the new process? – What will they be trained on? – What materials will be required to conduct the training? (perhaps the same materials in the pilot) – How long will the training occur and who will conduct it?  Prepare your findings. Implementation Planning SI Project Template: Implementation Planning_SI 24 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Leadership Implementation Owner(s) Training Owner(s) Process Owner(s) Barriers to Success Barriers Actions Necessary to Overcome Barriers Owner Training Plan Group To Be Trained Description of Training Materials Required Length of Training Trainer(s) Implementation Planning 25 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Please Do Not Proceed Forward Implementation Planning 26 For additional information about this concept, see Lesson 23 Implement Solution, in the Implementation Planning - Technical section. This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes When you see this symbol, please do not continue forward in the materials. Copyright © 2016 Acuity Institute LLC. All rights reserved. Barbara KissingerProcess Owner(s) Steve McCaffrey, Erin AndersonTraining Owner(s) Steve McCaffrey, Erin AndersonImplementation Owner(s) Leadership SI Implementation Plan Erin A.Approval from Processing VP, begin scheduling earlyPulling associates from floor for training Steve M.Approval from IT VP and assignment of resourcesIT resources needed to build new system Erin A.Gain leadership support, Process Owners to work with associates Resistance to combining LO and LP roles and eliminating MSA responsibility from process OwnerActions Necessary to Overcome BarriersBarriers Barriers to Success Erin A.½ DayBinderProcess review, roles and responsibilitiesAgents Erin A.½ DayBinderProcess review, roles and responsibilitiesSales Steve M., Erin A. 3 DaysBinder (new process, SOP’s, R&R’s), PC’s Process review, Internet System review, roles and responsibilities Processing Trainer(s)Length of Training Materials RequiredDescription of TrainingGroup To Be Trained Training Plan 27 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Storyboarding Lean Six Sigma – Project Simulation 28 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Objective  Develop a “1 page” Storyboard for the SI Consumer Home Loan project. Instructions  Using the worksheet on the following page, develop a “1 page” storyboard for communication to the organization through the Improve phase.  Document key deliverables from each phase of the project under the designated sections  Be creative…think about the story you are trying to tell and the key deliverables you want the organization to see that will help sell the project outcomes  Use graphs, statements and visual aides  Prepare your findings. Storyboarding SI Project Template: Storyboarding_SI 29 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Background DEFINE MEASURE ANALYZE IMPROVE Storyboarding 30 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Please Do Not Proceed Forward Storyboarding 31 For additional information about this concept, see Lesson 23 Implement Solution, in the Implementation Planning - Cultural section. This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes When you see this symbol, please do not continue forward in the materials. Copyright © 2016 Acuity Institute LLC. All rights reserved. Background DEFINE MEASURE ANALYZE IMPROVE During the past 2 years SI has fallen from the 3rd largest financial services provider to 6th in the world. The primary reason for this decline is poor customer service which is driving customers to our competition. Through analyzing our processes we learned that our Global Consumer Home Loan division was performing well below customer expectations, therefore the “Home Loan” Lean Six Sigma project was initiated. Team Members Project Role John Davis Sponsor Susan Terrell Master Black Belt Steve McCaffrey Black / Green Belt Ellen Mobley Team Member Rod Elway Team Member Erin Anderson Team Member Owen Atwater Team Member Project Goals (by September 1st): 1.Reduce the Consumer Home Loan process cycle time by 45% 2.Improve process accuracy by 50% CTQ’s: 15 day loan processing cycle time 100% final determination accuracy 100% documented roles and responsibilities 2 day loan reviewing time 0 5 10 15 20 25 30 35 40 45 20 .0 24 .3 28 .7 33 .0 37 .3 41 .7 46 .0 50 .3 54 .7 59 .0 63 .3 67 .7 72 .0 Chicago Loan Processing Cycle Time Accuracy Baseline Sigma for Chicago = 3.2 Root Causes: 1.Too Much Inter- Department Processing Time 2.Staffing Model Not Aligned with Peak Volume 3. Incoming Applications are Inaccurate 4.No Process Controls 5.Non Value-Added Process Steps Median: 30.00 0.90 5.90 10.90 15.90 20.90 25.90 30.90 35.90 40.90 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 9910 1 10 3 10 5 10 7 10 9 11 1 11 3 11 5 11 7 11 9 12 1 12 3 12 5 Ru n Ch ar t - C hi ca go L oa n Pr oc es si ng C yc le T im e Project Benefits = ~$6.1MM Pilot Results Baseline Performance SI Storyboard 32 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Chart4 6.5140688934 12 7.4594354069 19 8.48613712 41 9.5910158579 28 10.7688579977 3 12.012272298 0 13.3116277219 0 14.6550611711 0 16.0285628548 1 17.4161441501 0 18.800089363 0 20.1612889329 0 21.4796475287 1 22.7345563899 23.9054154296 24.9721872717 25.9159628042 26.7195161675 27.3678265349 27.8485446582 28.1523839526 28.2734188254 28.2092768612 27.9612161566 27.5340842817 26.9361607397 26.1788900765 25.2765176574 24.2456443015 23.1047192105 21.8734927916 20.5724519549 19.2222602603 17.8432239533 16.4548026025 15.0751799165 13.7209066056 12.4066231116 11.1448659099 9.9459571253 8.8179736125 7.7667885908 6.7961765134 5.9079701595 5.1022579739 4.3776094181 3.7313164606 3.1596402307 2.6580531625 2.2214685423 1.8444511161 1.5214041911 1.2467303849 1.0149647441 0.820880325 0.6595674476 0.526488703 0.4175123991 0.3289274931 0.2574432146 0.2001765506 0.154630596 0.1186665005 0.0904714014 0.0685243583 0.0515619239 0.0385446163 0.0286252189 0.0211195366 0.0154799812 0.0112721549 0.0081544364 0.0058604562 0.0041842669 0.0029679584 0.0020914463 0.0014641518 0.0010183005 0.0007035845 0.0004829555 0.000329343 0.0002231209 0.0001501697 0.0001004096 0.0000666988 0.0000440161 0.0000288573 0.0000187954 0.0000121617 0.0000078179 0.0000049927 0.0000031676 0.0000019966 0.0000012502 0.0000007777 0.0000004806 0.0000002951 0.00000018 0.0000001091 0.0000000657 0.0000000393 Chicago Loan Processing Cycle Time Sheet134 Sheet133 Sheet132 Sheet131 Sheet130 Sheet129 Sheet128 Sheet127 1 2 Sheet126 Sheet125 Sheet124 Chicago Loan Processing Cycle Time Chicago Cycle Time Chicago Loan Processing Cycle Time 30 30 27 31 31 21 32 28 31 30 28 35 26 55 32 24 34 28 40 31 32 36 31 34 29 34 28 30 30 35 22 23 32 33 32 28 41 32 34 20 31 31 29 30 35 30 28 31 29 31 37 36 21 27 28 33 32 32 24 29 72 35 28 21 32 32 29 37 32 29 33 20 31 34 23 33 36 31 30 26 25 37 35 30 33 23 30 27 35 35 36 29 25 35 38 26 24 25 36 31 33 28 34 25 32 Sheet2 Sheet3 Hist Descript SigmaXLChartSheet Chicago Loan Processing Cycle Time Count = 105 Mean = 31 Stdev = 6.4196 Range = 52.0 Minimum = 20 25th Percentile (Q1) = 28 50th Percentile (Median) = 31 75th Percentile (Q3) = 34.00 Maximum = 72 95% CI Mean = 29.76 to 32.2 95% CI Sigma = 5.65 to 7.43 1 6.5140688934 7.4594354069 8.48613712 9.5910158579 10.7688579977 12.012272298 13.3116277219 14.6550611711 16.0285628548 17.4161441501 18.800089363 20.1612889329 21.4796475287 22.7345563899 23.9054154296 24.9721872717 25.9159628042 26.7195161675 27.3678265349 27.8485446582 28.1523839526 28.2734188254 28.2092768612 27.9612161566 27.5340842817 26.9361607397 26.1788900765 25.2765176574 24.2456443015 23.1047192105 21.8734927916 20.5724519549 19.2222602603 17.8432239533 16.4548026025 15.0751799165 13.7209066056 12.4066231116 11.1448659099 9.9459571253 8.8179736125 7.7667885908 6.7961765134 5.9079701595 5.1022579739 4.3776094181 3.7313164606 3.1596402307 2.6580531625 2.2214685423 1.8444511161 1.5214041911 1.2467303849 1.0149647441 0.820880325 0.6595674476 0.526488703 0.4175123991 0.3289274931 0.2574432146 0.2001765506 0.154630596 0.1186665005 0.0904714014 0.0685243583 0.0515619239 0.0385446163 0.0286252189 0.0211195366 0.0154799812 0.0112721549 0.0081544364 0.0058604562 0.0041842669 0.0029679584 0.0020914463 0.0014641518 0.0010183005 0.0007035845 0.0004829555 0.000329343 0.0002231209 0.0001501697 0.0001004096 0.0000666988 0.0000440161 0.0000288573 0.0000187954 0.0000121617 0.0000078179 0.0000049927 0.0000031676 0.0000019966 0.0000012502 0.0000007777 0.0000004806 0.0000002951 0.00000018 0.0000001091 0.0000000657 0.0000000393 20.0 24.3 28.7 33.0 37.3 41.7 46.0 50.3 54.7 59.0 63.3 67.7 72.0 12 19 41 28 3 0 0 0 1 0 0 0 1 Hist Descript Chicago Loan Processing Cycle Time Run Chart SigmaXLChartSheet $A$1 1 Chicago Loan Processing Cycle Time RunChart 30.44 Chicago Loan Processing Cycle Time Chicago Cycle Time 1 30 30.0 105 30 2 30 30.0 30 106 3 27 27.0 30 4 31 31.0 0 30 5 31 31.0 105 30 6 21 21.0 -105 30 Mean 7 32 32.0 30 8 28 28.0 30 9 31 31.0 30 10 30 30.0 30 11 28 28.0 30 12 35 35.0 30 13 26 26.0 30 14 34 34.0 30 15 32 32.0 30 16 24 24.0 30 17 34 34.0 30 18 28 28.0 30 19 40 40.0 30 20 31 31.0 30 21 32 32.0 30 22 36 36.0 30 23 31 31.0 30 24 34 34.0 30 25 29 29.0 30 26 34 34.0 30 27 28 28.0 30 28 30 30.0 30 29 30 30.0 30 30 35 35.0 30 31 22 22.0 30 32 23 23.0 30 33 32 32.0 30 34 33 33.0 30 35 32 32.0 30 36 28 28.0 30 37 41 41.0 30 38 32 32.0 30 39 34 34.0 30 40 20 20.0 30 41 31 31.0 30 42 31 31.0 30 43 29 29.0 30 44 30 30.0 30 45 35 35.0 30 46 30 30.0 30 47 28 28.0 30 48 31 31.0 30 49 29 29.0 30 50 31 31.0 30 51 37 37.0 30 52 36 36.0 30 53 21 21.0 30 54 27 27.0 30 55 28 28.0 30 56 33 33.0 30 57 32 32.0 30 58 32 32.0 30 59 24 24.0 30 60 29 29.0 30 61 34 34.0 30 62 35 35.0 30 63 28 28.0 30 64 21 21.0 30 65 32 32.0 30 66 32 32.0 30 67 29 29.0 30 68 37 37.0 30 69 32 32.0 30 70 29 29.0 30 71 33 33.0 30 72 20 20.0 30 73 31 31.0 30 74 34 34.0 30 75 23 23.0 30 76 33 33.0 30 77 36 36.0 30 78 31 31.0 30 79 30 30.0 30 80 26 26.0 30 81 25 25.0 30 82 37 37.0 30 83 35 35.0 30 84 30 30.0 30 85 33 33.0 30 86 23 23.0 30 87 30 30.0 30 88 27 27.0 30 89 35 35.0 30 90 35 35.0 30 91 36 36.0 30 92 29 29.0 30 93 25 25.0 30 94 35 35.0 30 95 38 38.0 30 96 26 26.0 30 97 24 24.0 30 98 25 25.0 30 99 36 36.0 30 100 31 31.0 30 101 33 33.0 30 102 28 28.0 30 103 34 34.0 30 104 25 25.0 30 105 32 32.0 30 Run Chart Run Chart - Chicago Loan Processing Cycle Time Mean: 30.44 Indiv & MR Charts SigmaXL Control Charts tests $A$1 IMR 6.3461538462 31 imean Chicago Loan Processing Cycle Time Chicago Cycle Time 1 30 30 14.1219312602 31 47.8780687398 0 0 6.3461538462 20.7328846154 indvmean 105 2 30 0 30 14.1219312602 31 47.8780687398 3 0 6.3461538462 20.7328846154 106 3 27 3 27 14.1219312602 31 47.8780687398 4 0 6.3461538462 20.7328846154 4 31 4 31 14.1219312602 31 47.8780687398 0 0 6.3461538462 20.7328846154 5 31 0 31 14.1219312602 31 47.8780687398 10 0 6.3461538462 20.7328846154 6 21 10 21 14.1219312602 31 47.8780687398 11 0 6.3461538462 20.7328846154 7 32 11 32 14.1219312602 31 47.8780687398 4 0 6.3461538462 20.7328846154 8 28 4 28 14.1219312602 31 47.8780687398 3 0 6.3461538462 20.7328846154 9 31 3 31 14.1219312602 31 47.8780687398 1 0 6.3461538462 20.7328846154 10 30 1 30 14.1219312602 31 47.8780687398 2 0 6.3461538462 20.7328846154 11 28 2 28 14.1219312602 31 47.8780687398 7 0 6.3461538462 20.7328846154 12 35 7 35 14.1219312602 31 47.8780687398 9 0 6.3461538462 20.7328846154 13 26 9 26 14.1219312602 31 47.8780687398 29 0 6.3461538462 20.7328846154 14 55 29 55 14.1219312602 31 47.8780687398 23 0 6.3461538462 20.7328846154 15 32 23 32 14.1219312602 31 47.8780687398 8 0 6.3461538462 20.7328846154 16 24 8 24 14.1219312602 31 47.8780687398 10 0 6.3461538462 20.7328846154 17 34 10 34 14.1219312602 31 47.8780687398 6 0 6.3461538462 20.7328846154 18 28 6 28 14.1219312602 31 47.8780687398 12 0 6.3461538462 20.7328846154 19 40 12 40 14.1219312602 31 47.8780687398 9 0 6.3461538462 20.7328846154 20 31 9 31 14.1219312602 31 47.8780687398 1 0 6.3461538462 20.7328846154 21 32 1 32 14.1219312602 31 47.8780687398 4 0 6.3461538462 20.7328846154 22 36 4 36 14.1219312602 31 47.8780687398 5 0 6.3461538462 20.7328846154 23 31 5 31 14.1219312602 31 47.8780687398 3 0 6.3461538462 20.7328846154 24 34 3 34 14.1219312602 31 47.8780687398 5 0 6.3461538462 20.7328846154 25 29 5 29 14.1219312602 31 47.8780687398 5 0 6.3461538462 20.7328846154 26 34 5 34 14.1219312602 31 47.8780687398 6 0 6.3461538462 20.7328846154 27 28 6 28 14.1219312602 31 47.8780687398 2 0 6.3461538462 20.7328846154 28 30 2 30 14.1219312602 31 47.8780687398 0 0 6.3461538462 20.7328846154 29 30 0 30 14.1219312602 31 47.8780687398 5 0 6.3461538462 20.7328846154 30 35 5 35 14.1219312602 31 47.8780687398 13 0 6.3461538462 20.7328846154 31 22 13 22 14.1219312602 31 47.8780687398 1 0 6.3461538462 20.7328846154 32 23 1 23 14.1219312602 31 47.8780687398 9 0 6.3461538462 20.7328846154 33 32 9 32 14.1219312602 31 47.8780687398 1 0 6.3461538462 20.7328846154 34 33 1 33 14.1219312602 31 47.8780687398 1 0 6.3461538462 20.7328846154 35 32 1 32 14.1219312602 31 47.8780687398 4 0 6.3461538462 20.7328846154 36 28 4 28 14.1219312602 31 47.8780687398 13 0 6.3461538462 20.7328846154 37 41 13 41 14.1219312602 31 47.8780687398 9 0 6.3461538462 20.7328846154 38 32 9 32 14.1219312602 31 47.8780687398 2 0 6.3461538462 20.7328846154 39 34 2 34 14.1219312602 31 47.8780687398 14 0 6.3461538462 20.7328846154 40 20 14 20 14.1219312602 31 47.8780687398 11 0 6.3461538462 20.7328846154 41 31 11 31 14.1219312602 31 47.8780687398 0 0 6.3461538462 20.7328846154 42 31 0 31 14.1219312602 31 47.8780687398 2 0 6.3461538462 20.7328846154 43 29 2 29 14.1219312602 31 47.8780687398 1 0 6.3461538462 20.7328846154 44 30 1 30 14.1219312602 31 47.8780687398 5 0 6.3461538462 20.7328846154 45 35 5 35 14.1219312602 31 47.8780687398 5 0 6.3461538462 20.7328846154 46 30 5 30 14.1219312602 31 47.8780687398 2 0 6.3461538462 20.7328846154 47 28 2 28 14.1219312602 31 47.8780687398 3 0 6.3461538462 20.7328846154 48 31 3 31 14.1219312602 31 47.8780687398 2 0 6.3461538462 20.7328846154 49 29 2 29 14.1219312602 31 47.8780687398 2 0 6.3461538462 20.7328846154 50 31 2 31 14.1219312602 31 47.8780687398 6 0 6.3461538462 20.7328846154 51 37 6 37 14.1219312602 31 47.8780687398 1 0 6.3461538462 20.7328846154 52 36 1 36 14.1219312602 31 47.8780687398 15 0 6.3461538462 20.7328846154 53 21 15 21 14.1219312602 31 47.8780687398 6 0 6.3461538462 20.7328846154 54 27 6 27 14.1219312602 31 47.8780687398 1 0 6.3461538462 20.7328846154 55 28 1 28 14.1219312602 31 47.8780687398 5 0 6.3461538462 20.7328846154 56 33 5 33 14.1219312602 31 47.8780687398 1 0 6.3461538462 20.7328846154 57 32 1 32 14.1219312602 31 47.8780687398 0 0 6.3461538462 20.7328846154 58 32 0 32 14.1219312602 31 47.8780687398 8 0 6.3461538462 20.7328846154 59 24 8 24 14.1219312602 31 47.8780687398 5 0 6.3461538462 20.7328846154 60 29 5 29 14.1219312602 31 47.8780687398 43 0 6.3461538462 20.7328846154 61 72 43 72 14.1219312602 31 47.8780687398 37 0 6.3461538462 20.7328846154 62 35 37 35 14.1219312602 31 47.8780687398 7 0 6.3461538462 20.7328846154 63 28 7 28 14.1219312602 31 47.8780687398 7 0 6.3461538462 20.7328846154 64 21 7 21 14.1219312602 31 47.8780687398 11 0 6.3461538462 20.7328846154 65 32 11 32 14.1219312602 31 47.8780687398 0 0 6.3461538462 20.7328846154 66 32 0 32 14.1219312602 31 47.8780687398 3 0 6.3461538462 20.7328846154 67 29 3 29 14.1219312602 31 47.8780687398 8 0 6.3461538462 20.7328846154 68 37 8 37 14.1219312602 31 47.8780687398 5 0 6.3461538462 20.7328846154 69 32 5 32 14.1219312602 31 47.8780687398 3 0 6.3461538462 20.7328846154 70 29 3 29 14.1219312602 31 47.8780687398 4 0 6.3461538462 20.7328846154 71 33 4 33 14.1219312602 31 47.8780687398 13 0 6.3461538462 20.7328846154 72 20 13 20 14.1219312602 31 47.8780687398 11 0 6.3461538462 20.7328846154 73 31 11 31 14.1219312602 31 47.8780687398 3 0 6.3461538462 20.7328846154 74 34 3 34 14.1219312602 31 47.8780687398 11 0 6.3461538462 20.7328846154 75 23 11 23 14.1219312602 31 47.8780687398 10 0 6.3461538462 20.7328846154 76 33 10 33 14.1219312602 31 47.8780687398 3 0 6.3461538462 20.7328846154 77 36 3 36 14.1219312602 31 47.8780687398 5 0 6.3461538462 20.7328846154 78 31 5 31 14.1219312602 31 47.8780687398 1 0 6.3461538462 20.7328846154 79 30 1 30 14.1219312602 31 47.8780687398 4 0 6.3461538462 20.7328846154 80 26 4 26 14.1219312602 31 47.8780687398 1 0 6.3461538462 20.7328846154 81 25 1 25 14.1219312602 31 47.8780687398 12 0 6.3461538462 20.7328846154 82 37 12 37 14.1219312602 31 47.8780687398 2 0 6.3461538462 20.7328846154 83 35 2 35 14.1219312602 31 47.8780687398 5 0 6.3461538462 20.7328846154 84 30 5 30 14.1219312602 31 47.8780687398 3 0 6.3461538462 20.7328846154 85 33 3 33 14.1219312602 31 47.8780687398 10 0 6.3461538462 20.7328846154 86 23 10 23 14.1219312602 31 47.8780687398 7 0 6.3461538462 20.7328846154 87 30 7 30 14.1219312602 31 47.8780687398 3 0 6.3461538462 20.7328846154 88 27 3 27 14.1219312602 31 47.8780687398 8 0 6.3461538462 20.7328846154 89 35 8 35 14.1219312602 31 47.8780687398 0 0 6.3461538462 20.7328846154 90 35 0 35 14.1219312602 31 47.8780687398 1 0 6.3461538462 20.7328846154 91 36 1 36 14.1219312602 31 47.8780687398 7 0 6.3461538462 20.7328846154 92 29 7 29 14.1219312602 31 47.8780687398 4 0 6.3461538462 20.7328846154 93 25 4 25 14.1219312602 31 47.8780687398 10 0 6.3461538462 20.7328846154 94 35 10 35 14.1219312602 31 47.8780687398 3 0 6.3461538462 20.7328846154 95 38 3 38 14.1219312602 31 47.8780687398 12 0 6.3461538462 20.7328846154 96 26 12 26 14.1219312602 31 47.8780687398 2 0 6.3461538462 20.7328846154 97 24 2 24 14.1219312602 31 47.8780687398 1 0 6.3461538462 20.7328846154 98 25 1 25 14.1219312602 31 47.8780687398 11 0 6.3461538462 20.7328846154 99 36 11 36 14.1219312602 31 47.8780687398 5 0 6.3461538462 20.7328846154 100 31 5 31 14.1219312602 31 47.8780687398 2 0 6.3461538462 20.7328846154 101 33 2 33 14.1219312602 31 47.8780687398 5 0 6.3461538462 20.7328846154 102 28 5 28 14.1219312602 31 47.8780687398 6 0 6.3461538462 20.7328846154 103 34 6 34 14.1219312602 31 47.8780687398 9 0 6.3461538462 20.7328846154 104 25 9 25 14.1219312602 31 47.8780687398 7 0 6.3461538462 20.7328846154 105 32 7 32 14.1219312602 31.00 47.8780687398 Indiv & MR Charts Individuals - Chicago Loan Processing Cycle Time 1 1 Mean CL: 31.00 Indiv - Tests MR - Chicago Loan Processing Cycle Time Tests for Special Causes - Indiv - Chicago Loan Processing Cycle Time Number of Data Points Failing Tests = 2 Observation No. Test 1: 1 point more than 3 sigma from CL Test 2: 9 points in a row on same side of CL Test 3: 6 points in a row all increasing or all decreasing Test 4: 14 points in a row alternating up and down Test 5: 2 out of 3 points more than 2 sigma from CL (same side) Test 6: 4 out of 5 points more than 1 sigma from CL (same side) Test 7: 15 points in a row within 1 sigma from CL (either side) Test 8: 8 points in a row more than 1 sigma from CL (either side) 14 x 61 x Chart5 30 30 30 30 27 30 31 30 31 30 28 30 32 30 28 30 31 30 30 30 28 30 35 30 26 30 34 30 32 30 24 30 34 30 28 30 31 30 31 30 32 30 36 30 31 30 34 30 29 30 34 30 28 30 30 30 30 30 35 30 25 30 27 30 32 30 33 30 32 30 28 30 32 30 32 30 34 30 37 30 31 30 31 30 29 30 30 30 35 30 30 30 28 30 31 30 29 30 31 30 37 30 36 30 31 30 27 30 28 30 33 30 32 30 32 30 24 30 29 30 34 30 35 30 28 30 32 30 32 30 32 30 29 30 37 30 32 30 29 30 33 30 20 30 31 30 34 30 28 30 33 30 36 30 31 30 30 30 26 30 25 30 37 30 35 30 30 30 33 30 29 30 30 30 27 30 35 30 35 30 36 30 29 30 25 30 35 30 38 30 26 30 24 30 25 30 36 30 31 30 33 30 28 30 34 30 25 30 32 30 3 30 6 30 5 30 7 30 7 30 6 30 6 30 4 30 4 30 7 30 1 30 12 30 7 30 4 30 5 30 6 30 9 30 8 30 6 30 7 30 Run Chart - Chicago Loan Processing Cycle Time Median: 30.00 Sheet134 Sheet133 Sheet132 Sheet131 Sheet130 Sheet129 Sheet128 Sheet127 1 2 Sheet126 Sheet125 Sheet124 Chicago Loan Processing Cycle Time Dataxl1 Sum of Number of Errors 44 Application Fields 0 Total Loan Amount 26 0.5909090909 26 Name 12 0.8636363636 38 Address 3 0.9318181818 41 Loan Duration 2 0.9772727273 43 City 1 1 44 Loan # 0 1 44 State 0 1 44 1 Sheet24 Sheet23 Sheet22 Sheet21 Sheet20 Sheet19 Sheet18 Sheet17 1 2 Sheet16 Application Fields Number of Errors Name 12 Address 3 Loan # 0 Loan Amount 26 Loan Duration 2 City 1 State 0 Dataxl1 (2) Sum of Number of Errors 44 82 7 Loan Amount 26 0.5909090909 Application Fields Total 0 Name 12 0.8636363636 Loan Amount 26 59% 26 Address 3 0.9318181818 Name 12 86% 38 100 Loan Duration 2 0.9772727273 Address 3 93% 41 City 1 1 Loan Duration 2 98% 43 Loan # 0 1 City 1 100% 44 State 0 1 Loan # 0 100% 44 State 0 100% 44 Dataxl1 (3) Sum of Number of Errors 44 Application Fields 0 Total Loan Amount 26 0.5909090909 26 Name 12 0.8636363636 38 Address 3 0.9318181818 41 Loan Duration 2 0.9772727273 43 City 1 1 44 Loan # 0 1 44 State 0 1 44 1 # of Package Errors Application Fields Number of Errors Name 12 Address 3 Loan # 0 Loan Amount 26 Loan Duration 2 City 1 State 0 44 Sheet13 Sheet12 Sheet11 Sheet10 Sheet8 Sheet7 4286 0 4286 0 2 Sheet5 Chicago Loan Processing Cycle Time RA Cycle Time MSA Cycle Time LP Cycle Time LO Cycle Time 30 1 15 11 3 30 2 15 9 4 27 3 14 7 3 31 4 16 8 3 31 3 16 10 4 21 4 11 3 3 32 5 16 8 3 28 6 14 5 3 31 3 16 8 4 30 4 15 8 3 28 2 14 9 3 35 3 18 13 2 26 4 13 6 3 55 5 28 15 7 32 3 16 11 2 24 2 12 6 4 34 3 17 11 3 28 4 14 7 3 40 2 20 16 2 31 3 16 9 3 32 4 16 9 3 36 2 18 11 2 31 3 16 9 3 34 3 17 10 4 29 2 15 9 5 34 2 17 10 4 28 1 14 8 3 30 1 15 9 3 30 2 15 9 2 35 3 18 11 3 22 2 11 7 1 23 3 12 7 3 32 4 16 10 2 33 5 17 10 3 32 4 16 10 3 28 3 14 8 3 41 4 21 12 4 32 3 16 10 3 34 2 17 10 3 20 3 10 6 2 31 4 16 9 3 31 3 16 9 3 29 2 15 9 3 30 2 15 9 3 35 2 18 11 4 30 3 15 9 3 28 3 14 8 3 31 2 16 9 3 29 1 15 9 3 31 2 16 9 3 37 3 19 11 4 36 4 18 11 4 21 3 11 6 2 27 2 14 8 3 28 1 14 8 3 33 2 17 10 3 32 3 16 10 3 32 4 16 10 3 24 4 12 7 3 29 4 15 9 4 72 3 36 22 6 35 4 18 11 5 28 4 14 8 3 21 5 11 6 4 32 3 16 10 3 32 3 16 10 4 29 2 15 9 2 37 1 19 11 4 32 2 16 10 3 29 3 15 9 3 33 2 17 10 3 20 3 10 6 2 31 3 16 9 3 34 4 17 10 3 23 3 12 7 2 33 2 17 10 2 36 3 18 11 3 31 4 16 9 1 30 3 15 9 3 26 2 13 8 4 25 2 13 8 3 37 2 19 11 4 35 2 18 11 4 30 3 15 9 4 33 3 17 10 3 23 4 12 7 2 30 3 15 9 3 27 4 14 8 3 35 5 18 11 4 35 4 18 11 4 36 3 18 11 5 29 2 15 9 3 25 1 13 8 2 35 2 18 11 4 38 3 19 11 4 26 4 13 8 3 24 5 12 7 3 25 4 13 8 4 36 3 18 11 4 31 4 16 9 3 33 5 17 10 3 28 4 14 8 3 34 3 17 10 3 25 4 13 8 3 32 5 16 10 4 Sheet4 Sheet3 Chicago Loan Processing Cycle Time Chicago Loan Processing Cycle Time RA Cycle Time RA Cycle Time MSA Cycle Time MSA Cycle Time LP Cycle Time LP Cycle Time LO Cycle Time LO Cycle Time Sheet45 Sheet44 Sheet43 Sheet42 Sheet40 Sheet39 4286 0 4286 0 2 Sheet37 Chicago Loan Processing Cycle Time RA Cycle Time MSA Cycle Time LP Cycle Time LO Cycle Time 30 1 15 11 3 30 2 15 9 4 27 3 14 7 3 31 4 16 8 3 31 3 16 8 4 21 4 11 3 3 32 5 16 8 3 28 6 14 5 3 31 3 16 8 4 30 4 15 8 3 28 2 14 9 3 35 3 18 12 2 26 4 13 6 3 55 5 28 15 7 32 3 16 11 2 24 2 12 6 4 34 3 17 11 3 28 4 14 7 3 40 2 20 16 2 31 3 16 9 3 32 4 16 9 3 36 2 18 14 2 31 3 16 9 3 34 3 17 10 4 29 2 15 7 5 34 2 17 11 4 28 1 14 10 3 30 1 15 11 3 30 2 15 11 2 35 3 18 11 3 22 2 11 8 1 23 3 12 5 3 32 4 16 10 2 33 5 17 8 3 32 4 16 9 3 28 3 14 8 3 41 4 21 12 4 32 3 16 10 3 34 2 17 12 3 20 3 10 5 2 31 4 16 8 3 31 3 16 9 3 29 2 15 10 3 30 2 15 10 3 35 2 18 12 4 30 3 15 9 3 28 3 14 8 3 31 2 16 10 3 29 1 15 11 3 31 2 16 10 3 37 3 19 12 4 36 4 18 11 4 21 3 11 5 2 27 2 14 9 3 28 1 14 10 3 33 2 17 11 3 32 3 16 10 3 32 4 16 9 3 24 4 12 5 3 29 4 15 6 4 72 3 36 27 6 35 4 18 8 5 28 4 14 7 3 21 5 11 1 4 32 3 16 10 3 32 3 16 9 4 29 2 15 10 2 37 1 19 13 4 32 2 16 11 3 29 3 15 9 3 33 2 17 11 3 20 3 10 5 2 31 3 16 9 3 34 4 17 10 3 23 3 12 7 2 33 2 17 12 2 36 3 18 12 3 31 4 16 10 1 30 3 15 9 3 26 2 13 7 4 25 2 13 8 3 37 2 19 12 4 35 2 18 11 4 30 3 15 8 4 33 3 17 10 3 23 4 12 5 2 30 3 15 9 3 27 4 14 6 3 35 5 18 8 4 35 4 18 9 4 36 3 18 10 5 29 2 15 9 3 25 1 13 9 2 35 2 18 11 4 38 3 19 12 4 26 4 13 6 3 24 5 12 4 3 25 4 13 4 4 36 3 18 11 4 31 4 16 8 3 33 5 17 8 3 28 4 14 7 3 34 3 17 11 3 25 4 13 5 3 32 5 16 7 4 Sheet36 Sheet35 Chicago Loan Processing Cycle Time Chicago Loan Processing Cycle Time RA Cycle Time RA Cycle Time MSA Cycle Time MSA Cycle Time LP Cycle Time LP Cycle Time LO Cycle Time LO Cycle Time Sheet56 Sheet55 Sheet54 Sheet53 Sheet51 Sheet50 4286 0 4286 0 2 Sheet48 Chicago Loan Processing Cycle Time RA Cycle Time MSA Cycle Time LP Cycle Time LO Cycle Time 30 1 15 11 3 30 2 15 9 4 27 3 14 7 3 31 4 16 8 3 31 3 16 8 4 21 4 11 3 3 32 5 16 8 3 28 6 14 5 3 31 3 16 8 4 30 4 15 8 3 28 2 14 9 3 35 3 18 12 2 26 4 13 6 3 55 5 28 15 7 32 3 16 11 2 24 2 12 6 4 34 3 17 11 3 28 4 14 7 3 40 2 20 16 2 31 3 16 9 3 32 4 16 9 3 36 2 18 14 2 31 3 16 9 3 34 3 17 10 4 29 2 15 7 5 34 2 17 11 4 28 1 14 10 3 30 1 15 11 3 30 2 15 11 2 35 3 18 11 3 22 2 11 8 1 23 3 12 5 3 32 4 16 10 2 33 5 17 8 3 32 4 16 9 3 28 3 14 8 3 41 4 21 12 4 32 3 16 10 3 34 2 17 12 3 20 3 10 5 2 31 4 16 8 3 31 3 16 9 3 29 2 15 10 3 30 2 15 10 3 35 2 18 12 4 30 3 15 9 3 28 3 14 8 3 31 2 16 10 3 29 1 15 11 3 31 2 16 10 3 37 3 19 12 4 36 4 18 11 4 21 3 11 5 2 27 2 14 9 3 28 1 14 10 3 33 2 17 11 3 32 3 16 10 3 32 4 16 9 3 24 4 12 5 3 29 4 15 6 4 72 3 36 27 6 35 4 18 8 5 28 4 14 7 3 21 5 11 1 4 32 3 16 10 3 32 3 16 9 4 29 2 15 10 2 37 1 19 13 4 32 2 16 11 3 29 3 15 9 3 33 2 17 11 3 20 3 10 5 2 31 3 16 9 3 34 4 17 10 3 23 3 12 7 2 33 2 17 12 2 36 3 18 12 3 31 4 16 10 1 30 3 15 9 3 26 2 13 7 4 25 2 13 8 3 37 2 19 12 4 35 2 18 11 4 30 3 15 8 4 33 3 17 10 3 23 4 12 5 2 30 3 15 9 3 27 4 14 6 3 35 5 18 8 4 35 4 18 9 4 36 3 18 10 5 29 2 15 9 3 25 1 13 9 2 35 2 18 11 4 38 3 19 12 4 26 4 13 6 3 24 5 12 4 3 25 4 13 4 4 36 3 18 11 4 31 4 16 8 3 33 5 17 8 3 28 4 14 7 3 34 3 17 11 3 25 4 13 5 3 32 5 16 7 4 Sheet47 Sheet46 Chicago Loan Processing Cycle Time Chicago Loan Processing Cycle Time RA Cycle Time RA Cycle Time MSA Cycle Time MSA Cycle Time LP Cycle Time LP Cycle Time LO Cycle Time LO Cycle Time Chicago Cycle Time with Pilot Loan # Chicago Loan Processing Cycle Time 1 30 2 30 3 27 4 31 5 31 6 28 7 32 8 28 9 31 10 30 11 28 12 35 13 26 14 34 15 32 16 24 17 34 18 28 19 31 20 31 21 32 22 36 23 31 24 34 25 29 26 34 27 28 28 30 29 30 30 35 31 25 32 27 33 32 34 33 35 32 36 28 37 32 38 32 39 34 40 37 41 31 42 31 43 29 44 30 45 35 46 30 47 28 48 31 49 29 50 31 51 37 52 36 53 31 54 27 55 28 56 33 57 32 58 32 59 24 60 29 61 34 62 35 63 28 64 32 65 32 66 32 67 29 68 37 69 32 70 29 71 33 72 20 73 31 74 34 75 28 76 33 77 36 78 31 79 30 80 26 81 25 82 37 83 35 84 30 85 33 86 29 87 30 88 27 89 35 90 35 91 36 92 29 93 25 94 35 95 38 96 26 97 24 98 25 99 36 100 31 101 33 102 28 103 34 104 25 105 32 1 3 2 6 3 5 4 7 5 7 6 6 7 6 8 4 9 4 10 7 11 1 12 12 13 7 14 4 15 5 16 6 17 9 18 8 19 6 20 7 Sheet61 Normal Random Data (1) Chicago Pilot Loan Processing Time 3 6 5 7 7 6 6 4 4 7 1 12 7 4 5 6 9 8 6 7 Run Chart (2) SigmaXLChartSheet $B$1 1 Chicago Loan Processing Cycle Time RunChart 30.00 Chicago Loan Processing Cycle Time Chicago Cycle Time Per Dept 1 30 30.00 125 30 Nonparametric Runs Test: Chicago Loan Processing Cycle Time 2 30 30.00 30 126 3 27 27.00 30 Number of Runs about Median: 57 4 31 31.00 0 30 Expected Number of Runs about Median: 63 5 31 31.00 125 30 Number of Points above Median: 60 6 28 28.00 -125 30 Number of Points equal to or below Median: 65 Median 7 32 32.00 30 P-Value for Clustering: 0.1248 8 28 28.00 30 P-Value for Mixtures: 0.8752 9 31 31.00 30 P-Value for Lack of Randomness (2-Sided): 0.2496 10 30 30.00 30 11 28 28.00 30 Number of Runs Up or Down: 82 12 35 35.00 30 Expected Number of Runs Up or Down: 83 13 26 26.00 30 P-Value for Trends: 0.4154 14 34 34.00 30 P-Value for Oscillation: 0.5846 15 32 32.00 30 16 24 24.00 30 17 34 34.00 30 18 28 28.00 30 19 31 31.00 30 20 31 31.00 30 21 32 32.00 30 22 36 36.00 30 23 31 31.00 30 24 34 34.00 30 25 29 29.00 30 26 34 34.00 30 27 28 28.00 30 28 30 30.00 30 29 30 30.00 30 30 35 35.00 30 31 25 25.00 30 32 27 27.00 30 33 32 32.00 30 34 33 33.00 30 35 32 32.00 30 36 28 28.00 30 37 32 32.00 30 38 32 32.00 30 39 34 34.00 30 40 37 37.00 30 41 31 31.00 30 42 31 31.00 30 43 29 29.00 30 44 30 30.00 30 45 35 35.00 30 46 30 30.00 30 47 28 28.00 30 48 31 31.00 30 49 29 29.00 30 50 31 31.00 30 51 37 37.00 30 52 36 36.00 30 53 31 31.00 30 54 27 27.00 30 55 28 28.00 30 56 33 33.00 30 57 32 32.00 30 58 32 32.00 30 59 24 24.00 30 60 29 29.00 30 61 34 34.00 30 62 35 35.00 30 63 28 28.00 30 64 32 32.00 30 65 32 32.00 30 66 32 32.00 30 67 29 29.00 30 68 37 37.00 30 69 32 32.00 30 70 29 29.00 30 71 33 33.00 30 72 20 20.00 30 73 31 31.00 30 74 34 34.00 30 75 28 28.00 30 76 33 33.00 30 77 36 36.00 30 78 31 31.00 30 79 30 30.00 30 80 26 26.00 30 81 25 25.00 30 82 37 37.00 30 83 35 35.00 30 84 30 30.00 30 85 33 33.00 30 86 29 29.00 30 87 30 30.00 30 88 27 27.00 30 89 35 35.00 30 90 35 35.00 30 91 36 36.00 30 92 29 29.00 30 93 25 25.00 30 94 35 35.00 30 95 38 38.00 30 96 26 26.00 30 97 24 24.00 30 98 25 25.00 30 99 36 36.00 30 100 31 31.00 30 101 33 33.00 30 102 28 28.00 30 103 34 34.00 30 104 25 25.00 30 105 32 32.00 30 106 3 3.00 30 107 6 6.00 30 108 5 5.00 30 109 7 7.00 30 110 7 7.00 30 111 6 6.00 30 112 6 6.00 30 113 4 4.00 30 114 4 4.00 30 115 7 7.00 30 116 1 1.00 30 117 12 12.00 30 118 7 7.00 30 119 4 4.00 30 120 5 5.00 30 121 6 6.00 30 122 9 9.00 30 123 8 8.00 30 124 6 6.00 30 125 7 7.00 30 Run Chart (2) Run Chart - Chicago Loan Processing Cycle Time Median: 30.00 Hist Descript SigmaXLChartSheet Chicago Pilot Loan Processing Time Count = 20 Mean = 6 Stdev = 2.3170 Range = 11.0 Minimum = 1 25th Percentile (Q1) = 4.2500 50th Percentile (Median) = 6 75th Percentile (Q3) = 7.00 Maximum = 12 95% CI Mean = 4.92 to 7.1 95% CI Sigma = 1.76 to 3.38 An 1 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 1 0 1 3 2 5 5 1 1 0 0 1 0 Hist Descript Chicago Pilot Loan Processing Time Step 3 Corr LO Cycle Time MSA Cycle Time LP Cycle Time SUMMARY OUTPUT MSA Cycle Time 5 15 9 2 15 9 Regression Statistics 3 14 8 Multiple R 1 1 16 9 R Square 1 5 16 9 Adjusted R Square 1 2 14 8 Standard Error 1 1 16 10 Observations 105 3 14 8 3 16 9 ANOVA 5 15 9 df SS MS F Significance F 4 14 8 Regression 2 307 154 606 0 3 18 11 Residual 102 26 0 3 13 8 Total 104 333 1 17 10 4 16 10 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% 3 12 7 Intercept 2 0 4 0 1 2 1 2 4 17 10 LP Cycle Time 1 0 32 0 1 2 1 2 4 14 8 LO Cycle Time 0 0 2 0 0 0 0 0 4 16 9 3 16 9 SUMMARY OUTPUT LP Cycle Time 2 16 10 5 18 11 Regression Statistics 3 16 9 Multiple R 1 4 17 10 R Square 1 3 15 9 Adjusted R Square 1 5 17 10 Standard Error 0 3 14 8 Observations 105 5 15 9 4 15 9 ANOVA 3 18 11 df SS MS F Significance F 2 13 8 Regression 2 123 62 582 0 1 14 8 Residual 102 11 0 5 16 10 Total 104 134 1 17 10 2 16 10 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% 3 14 8 Intercept -0 0 -1 0 -1 0 -1 0 2 16 10 MSA Cycle Time 1 0 32 0 1 1 1 1 4 16 10 LO Cycle Time -0 0 -1 0 -0 0 -0 0 5 17 10 4 19 11 SUMMARY OUTPUT LO Cycle Time 2 16 9 5 16 9 Regression Statistics 1 15 9 Multiple R 0 4 15 9 R Square 0 4 18 11 Adjusted R Square 0 3 15 9 Standard Error 1 5 14 8 Observations 105 4 16 9 4 15 9 ANOVA 1 16 9 df SS MS F Significance F 4 19 11 Regression 2 25 13 9 0 3 18 11 Residual 102 149 1 5 16 9 Total 104 175 4 14 8 5 14 8 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% 5 17 10 Intercept -1 1 -1 0 -3 1 -3 1 3 16 10 MSA Cycle Time 1 0 2 0 0 1 0 1 2 16 10 LP Cycle Time -1 0 -1 0 -1 0 -1 0 1 12 7 4 15 9 5 17 10 2 18 11 2 14 8 3 16 10 3 16 10 3 16 10 4 15 9 6 19 11 4 16 10 2 15 9 4 17 10 1 10 6 3 16 9 5 17 10 3 14 8 4 17 10 6 18 11 2 16 9 3 15 9 2 13 8 2 13 8 5 19 11 3 18 11 3 15 9 3 17 10 3 15 9 3 15 9 1 14 8 3 18 11 2 18 11 4 18 11 3 15 9 3 13 8 4 18 11 5 19 11 1 13 8 3 12 7 2 13 8 4 18 11 2 16 9 1 17 10 5 14 8 4 17 10 2 13 8 3 16 10 Step 3 Data MSA Cycle Time LP Cycle Time LO Cycle Time 15 9 5 15 9 2 14 8 3 16 9 1 16 9 5 14 8 2 16 10 1 14 8 3 16 9 3 15 9 5 14 8 4 18 11 3 13 8 3 17 10 1 16 10 4 12 7 3 17 10 4 14 8 4 16 9 4 16 9 3 16 10 2 18 11 5 16 9 3 17 10 4 15 9 3 17 10 5 14 8 3 15 9 5 15 9 4 18 11 3 13 8 2 14 8 1 16 10 5 17 10 1 16 10 2 14 8 3 16 10 2 16 10 4 17 10 5 19 11 4 16 9 2 16 9 5 15 9 1 15 9 4 18 11 4 15 9 3 14 8 5 16 9 4 15 9 4 16 9 1 19 11 4 18 11 3 16 9 5 14 8 4 14 8 5 17 10 5 16 10 3 16 10 2 12 7 1 15 9 4 17 10 5 18 11 2 14 8 2 16 10 3 16 10 3 16 10 3 15 9 4 19 11 6 16 10 4 15 9 2 17 10 4 10 6 1 16 9 3 17 10 5 14 8 3 17 10 4 18 11 6 16 9 2 15 9 3 13 8 2 13 8 2 19 11 5 18 11 3 15 9 3 17 10 3 15 9 3 15 9 3 14 8 1 18 11 3 18 11 2 18 11 4 15 9 3 13 8 3 18 11 4 19 11 5 13 8 1 12 7 3 13 8 2 18 11 4 16 9 2 17 10 1 14 8 5 17 10 4 13 8 2 16 10 3 Step 2 Corr Step 2 Data LO Cycle Time LP Cycle Time 5 9 2 9 3 8 1 9 5 9 2 8 1 10 3 8 3 9 5 9 4 8 3 11 3 8 1 10 4 10 3 7 4 10 4 8 4 9 3 9 2 10 5 11 3 9 4 10 3 9 5 10 3 8 5 9 4 9 3 11 2 8 1 8 5 10 1 10 2 10 3 8 2 10 4 10 5 10 4 11 2 9 5 9 1 9 4 9 4 11 3 9 5 8 4 9 4 9 1 9 4 11 3 11 5 9 4 8 5 8 5 10 3 10 2 10 1 7 4 9 5 10 2 11 2 8 3 10 3 10 3 10 4 9 6 11 4 10 2 9 4 10 1 6 3 9 5 10 3 8 4 10 6 11 2 9 3 9 2 8 2 8 5 11 3 11 3 9 3 10 3 9 3 9 1 8 3 11 2 11 4 11 3 9 3 8 4 11 5 11 1 8 3 7 2 8 4 11 2 9 1 10 5 8 4 10 2 8 3 10 UserInfo Number of Variables 3 Variable 1 MSA Cycle Time 1 3 4 0 90 95 A 0 0 Keep in © Variable 2 LP Cycle Time 2 95 B 0 Keep in Variable 3 LO Cycle Time 3 C 0 Keep in Variable 4 0 0 D Variable 5 0 0 E Variable 6 0 0 F Variable 7 0 0 G DO NOT MAKE ANY CHANGES TO THIS SHEET!! MRData RA Cycle Time MSA Cycle Time LP Cycle Time LO Cycle Time 1 15 9 5 4 15 9 2 14 8 5 16 9 1 16 9 4 14 8 2 5 16 10 1 3 14 8 3 3 16 9 3 1 15 9 5 2 14 8 4 3 18 11 3 2 13 8 3 6 17 10 1 2 16 10 4 2 12 7 3 3 17 10 4 2 14 8 4 2 16 9 4 3 16 9 3 4 16 10 2 2 18 11 5 3 16 9 3 3 17 10 4 2 15 9 3 2 17 10 5 3 14 8 3 1 15 9 5 2 15 9 4 3 18 11 3 2 13 8 2 4 14 8 1 1 16 10 5 5 17 10 1 4 16 10 2 3 14 8 3 4 16 10 2 2 16 10 4 2 17 10 5 3 19 11 4 4 16 9 2 1 16 9 5 4 15 9 1 2 15 9 4 2 18 11 4 3 15 9 3 1 14 8 5 2 16 9 4 1 15 9 4 5 16 9 1 3 19 11 4 4 18 11 3 1 16 9 5 1 14 8 4 1 14 8 5 1 17 10 5 3 16 10 3 4 16 10 2 4 12 7 1 1 15 9 4 2 17 10 5 4 18 11 2 4 14 8 2 3 16 10 3 3 16 10 3 3 16 10 3 1 15 9 4 1 19 11 6 2 16 10 4 3 15 9 2 2 17 10 4 3 10 6 1 3 16 9 3 2 17 10 5 3 14 8 3 2 17 10 4 1 18 11 6 4 16 9 2 3 15 9 3 3 13 8 2 2 13 8 2 2 19 11 5 3 18 11 3 3 15 9 3 3 17 10 3 2 15 9 3 3 15 9 3 4 14 8 1 3 18 11 3 4 18 11 2 3 18 11 4 2 15 9 3 1 13 8 3 2 18 11 4 3 19 11 5 4 13 8 1 2 12 7 3 2 13 8 2 3 18 11 4 4 16 9 2 5 17 10 1 1 14 8 5 3 17 10 4 2 13 8 2 3 16 10 3 Copyright © 2016 Acuity Institute LLC. All rights reserved. Lean Six Sigma – Simco International Control Phase 1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Simco International – Control Phase Deliverables Deliverable Page Lesson (Deliverable Originated From) Process Monitoring Plan 3 Process Control Dashboard Development 10 Process Control Response Planning 15 Response Planning Final Project Storyboard 20 Project Documentation 2 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Process Monitoring Plan Lean Six Sigma – Project Simulation 3 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Objective  Create a Process Monitoring Plan for the SI Consumer Home Loan process. Instructions  Using the worksheet on the following page, develop a process monitoring plan for the ongoing monitoring of the new process.  Identify the process step(s) where the CTQs will be measured  Document the data collection process  Finally, document the frequency you feel the data will need to be collected and who will have ownership of the collection  Prepare your findings. Process Monitoring Plan SI Project Template: Process Monitoring Plan_SI 4 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. CTQ #1: 15 Day Loan Processing Cycle Time Owner Responsible for Collection Data Collection Frequency Data Collection MethodProcess Steps Where the CTQ is Measured CTQ #2: 2 Day Loan Reviewing Time Process Steps Where the CTQ is Measured Data Collection Method Data Collection Frequency Owner Responsible for Collection CTQ #3: 100% Final Determination Package Accuracy Process Steps Where the CTQ is Measured Data Collection Method Data Collection Frequency Owner Responsible for Collection Process Monitoring Plan 5 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Please Do Not Proceed Forward Process Monitoring Plan 6 For additional information about this concept, see Lesson 25 Process Control, in the Process Monitoring section. This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes When you see this symbol, please do not continue forward in the materials. Copyright © 2016 Acuity Institute LLC. All rights reserved. CTQ #1: 15 Day Loan Processing Cycle Time Process Steps Where the CTQ is Measured Data Collection Method Data Collection Frequency Owner Responsible for Collection Customer receives final determination package (either internet or mail) 1. Loan cycle time for Internet will be collected through the SI Loan System; Mail will be collected from the date the customer submits the application to the date of the outgoing final package (+5 days for shipping) 2. Query will be run each week to pull loan data 3. All loans processed will be entered into the SI Quality Assurance spreadsheet and Control Charts and Sigma’s will be created Weekly Processing Manager SI Process Monitoring Plan 7 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. CTQ #2: 2 Day Loan Reviewing Time Process Steps Where the CTQ is Measured Data Collection Method Data Collection Frequency Owner Responsible for Collection LP determines loan qualification 1. Loan cycle time for Internet will be collected through the SI Loan System; Mail will be collected from the date of the incoming application to the date the final determination package letter is generated 2. Query will be run each week to pull loan data 3. All loans processed will be entered into the SI Quality Assurance spreadsheet and Control Charts and Sigma’s will be created Weekly Processing Manager SI Process Monitoring Plan 8 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. CTQ #3: 100% Final Determination Package Accuracy Process Steps Where the CTQ is Measured Data Collection Method Data Collection Frequency Owner Responsible for Collection Generate (Internet) or create final determination package 1. A sample of 50 loans per week will be pulled for inspection using an accuracy tick sheet 2. Accuracy data will be entered into the SI Quality Assurance spreadsheet and Pareto Charts and Sigma’s will be created Weekly Processing Manager SI Process Monitoring Plan 9 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Dashboard Development Lean Six Sigma – Project Simulation 10 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Objective  Create a Dashboard for the SI Consumer Home Loan process. Instructions  Open up the Excel file “LSS SI Data File”.  The data set is in the worksheet “SI Quality Assurance”.  Develop a dashboard from the data that has been collected so far in the Control Phase.  Utilize whatever graphical display tools and calculations you feel would summarize the current process performance of the new SI loan process.  Utilize the following page to arrange these tools and calculations in the format of a dashboard.  Prepare your findings. Dashboard Development SI Project Template: Dashboard Development_SI 11 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Dashboard Development 12 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Please Do Not Proceed Forward Dashboard Development 13 For additional information about this concept, see Lesson 25 Process Control, in the Dashboards section. This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes When you see this symbol, please do not continue forward in the materials. Copyright © 2016 Acuity Institute LLC. All rights reserved. Chicago Loan Processing Cycle Time (Sigma = 3.6) Chicago LP Reviewing Time (Sigma = 3.0) Chicago Package Accuracy (Sigma = 3.5) Count 3 1 1 0 Percent 60.0 20.0 20.0 0.0 Cum % 60.0 80.0 100.0 100.0 Co un t Pe rc en t Loan Fields OtherNameAddressLoan Amount 5 4 3 2 1 0 100 80 60 40 20 0 Pareto Chart SI Dashboard 16141210864 12 10 8 6 4 2 0 Fr eq ue nc y Mean 8.98 StDev 2.290 N 50 Normal Histogram of Chicago Loan Processing Cycle Time 50454035302520151051 3.0 2.5 2.0 1.5 1.0 Observation Ch ica go LP Lo an R ev iew ing Ti me Run Chart (Mean 1.52) 14 8 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: - The SI Team used statistical analysis software to create the graphs for the new process dashboard. Copyright © 2016 Acuity Institute LLC. All rights reserved. Response Planning Lean Six Sigma – Project Simulation 15 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Objective  Develop a Response Plan for the SI Consumer Home Loan process. Instructions  Using the worksheet on the following page, develop a response plan for the ongoing monitoring of the new process.  What actions should be taken if the process goes out of control?  How frequently should action be taken?  Who will own taking the action?  Prepare your findings. Response Planning SI Project Template: Response Planning_SI 16 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. LP Reviewing Time Loan Accuracy Loan Processing Cycle Time OwnerTimingActionMeasure Response Planning 17 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes Notes: Copyright © 2016 Acuity Institute LLC. All rights reserved. Please Do Not Proceed Forward Response Planning 18 For additional information about this concept, see Lesson 26 Response Planning, in the Action Planning section. This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Presenter Presentation Notes When you see this symbol, please do not continue forward in the materials. Copyright © 2016 Acuity Institute LLC. All rights reserved. Processing Manager  Analysis should take place when process has been out of control for 2 weeks or more.  Quick Win improvements should be continuous  New DMAIC project should be implemented if process is out of control >2 months
1. Review qualification procedures with LP’s
2. Look for causal relationships (special or common)
3. Continue to monitor and initiate Quick Win
improvement for special cause and initiate a new
DMAIC project for common cause
LP
Reviewing
Time
Processing
Manager
 Analysis should take place when
process has been out of control
for 2 weeks or more.
 Quick Win improvements should
be continuous
 New DMAIC project should be
implemented if process is out of
control >2 months
1. Review incoming application accuracy from
customers
2. Review qualification procedures with LP’s
3. Identify and stratify accuracy defects by type
4. Look for causal relationships (special or common)
5. Continue to monitor and initiate Quick Win
improvement for special cause and initiate a new
DMAIC project for common cause
Loan
Accuracy
Processing
Manager
 Analysis should take place when
process has been out of control
for 2 weeks or more.
 Quick Win improvements should
be continuous
 New DMAIC project should be
implemented if process is out of
control >2 months
1. Identify and stratify overall cycle time defects by
location, day of week, and process segment
2. Look for causal relationships (special or common)
3. Check that SI Loan System has been functioning
properly
4. Continue to monitor and initiate Quick Win
improvements for special cause and initiate a new
DMAIC project for common cause
Loan
Processing
Cycle Time
OwnerTimingActionMeasure
SI Response Plan
19
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Presenter
Presentation Notes
Notes:

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Final Project Storyboard
Lean Six Sigma – Project Simulation
20
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Presenter
Presentation Notes
Notes:

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Final Project Storyboard
SI Project Template: Final Project Storyboard_SI
Objective
 Develop a Final Project Storyboard for the SI Consumer Home Loan project.
Instructions
 Using the “Final Project Storyboard” template, develop the Final Project Storyboard for
communication to the organization about the entire SI Consumer Home Loan project.
 The Final Project Storyboard is a presentation and visual depiction of the steps you took during
each phase of the DMAIC process. It communicates key deliverables and accomplishments
that were completed during the project (i.e. steps, tasks, key deliverables, and results). The
project story brings all the work and effort you put into your project to life through a storyboard
presentation.
 Document key deliverables from each phase of the project under the designated sections of the
“Final Project Storyboard” template
 For each phase where applicable, use a combination of graphs, pictures, statements and
annotations
 Be creative…think about the story you are trying to tell and the key deliverables you want the
organization to see that will help sell the overall project story
 Prepare your findings.
21
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Presenter
Presentation Notes
Notes:
The Final Project Storyboard is different from the “1 Page” storyboard you completed in the Improve Phase. The Final Project Storyboard consists of 7 slides (we highly recommend keeping it to 7 slides total).
Slide 1: Cover
Slide 2: Define Phase Outcomes
Slide 3: Measure Phase Outcomes
Slide 4: Analyze Phase Outcomes
Slide 5: Improve Phase Outcomes
Slide 6: Control Phase Outcomes
Slide 7: Project Takeaways/Lessons Learned

Copyright © 2016 Acuity Institute LLC. All rights reserved.
SI Final Project Storyboard – Example #1
This is an example of a poor SI Final Project Storyboard slide (from the Improve Phase)
22
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Presenter
Presentation Notes
Notes:
– This is an example of one slide from a poor SI Final Project Storyboard. This example has a simple screen shot of one deliverable from the Improve Phase. A screen shot without any annotations does not mean much (what does the tool tell you?). Also, what about the other deliverables from the Improve Phase.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
SI Final Project Storyboard – Example #2
This is an example of a good SI Final Project Storyboard slide (from the Analyze Phase)
23
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Presenter
Presentation Notes
Notes:
This is an example of one slide from a good SI Final Project Storyboard. This example includes graphs, charts and annotations from the entire Analyze Phase.
Please do not copy this slide for your SI Final Project Storyboard.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Please Do Not Proceed Forward
Final Project Storyboard
24
For additional information
about this concept, see
Lesson 27 Project
Documentation, in the
Solution Replication and
Closure section.
This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes.

Presenter
Presentation Notes
When you see this symbol, please do not continue forward in the materials.

Copyright © 2016 Acuity Institute LLC. All rights reserved.
Acuity Institute Support
For product support questions please contact Acuity Institute at
support@acuityinstitute.com
Please visit www.acuityinstitute.com
for additional product and course offerings
This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes.

Lean Six Sigma Green Belt eBook
eBook Overview
LSS Introduction
Lean Six Sigma Overview
Lean Six Sigma Improvement Methodologies
Lean Six Sigma Roles
Define Phase
Define Overview
Project Charter
Project Management
Process Definition
Stakeholder Management
Voice of Customer
Measure Phase
Measure Overview
Identify Measures
Data Collection
Describe and Display Data
Baseline Performance
Analyze Phase
Analyze Overview
Root Cause Analysis
Lean Process Analysis
Graphical Data Analysis
Statistical Data Analysis
Identify Root Causes
Improve Phase
Improve Overview
Identify and Select Solutions
Financial Impact of Solutions
Risk Planning and Testing
Implement Solution
Control Phase
Control Overview
Process Control
Response Planning
Project Documentation
Lean Six Sigma Green Belt Simulated Project Workbook
Simulated Project Overview
Define Phase Deliverables
Project Charter Development
SIPOC
As-Is Process Mapping
Quick Win Opportunities
Identify Stakeholders
Develop Stakeholder Map
Stakeholder Management Plan
Communication Plan
VOC Questions
CTQ Determination
Measure Phase Deliverables
Operational Definitions
Data Collection Planning
Histogram
Run Chart
Control Chart
Sigma Performance (DPMO)
Analyze Phase Deliverables
Cause and Effect Analysis
Lean Process Analysis
Process Stratification and Analysis – Pareto
Process Stratification and Analysis – Box Plots
Correlation Analysis
Regression Analysis
Improve Phase Deliverables
Solution Selection Matrix
Cost/Benefit Analysis
Mitigating Risks (FMEA)
Pilot Plan
Implementation Planning
Storyboarding
Control Phase Deliverables
Process Monitoring Plan
Dashboard Development
Response Planning
Final Project Storyboard

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