Operation Management Project

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Stakeholders, A3, Voice of Customer and Value Stream Mapping Session 5

How Will You Communicate?

The best way to identify and communicate with your team, key stakeholders and event champion is to answer questions such as:

Who is your audience?

What is the tool or media you will use to communicate?

What is the purpose of your communication?

What are your key messages?

Who is the owner of the communications task?

What is the timing and frequency of the communications?

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Instructor Guide

Published Date

Development of a Communication Process

Effective Communications

Must have the following characteristics:

A consistent formal process

Simple and understood by all

Contain current information

Have a feedback loop built into the process

Will help:

Build and maintain trust

Prevent rumors

Enlist and enroll the participation of employees in the pursuit of achieving objectives

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Instructor Guide

Published Date

Communication Plan Development

1. Determine audience and media to be used

2. Complete a Stakeholder Analysis

3. Complete a Communication Plan

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Instructor Guide

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1. Determine Audience and Media

 Executive Team  Managers  Administration

 Risk Management  Sales  Marketing

 HR  Consumer Relations  Engineering

 Finance  Legal  Customers

 Salaried  Hourly  Marketplace

 South America  Distributors  Europe

 Asia  North America

Identify the various audiences you will need to communicate:

Identify the media by which you will communicate to the groups above:

Voice Mail  Formal Presentations  Posters

Memos  Oral Communication  E-Mail

Elevator Speech

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Instructor Guide

Published Date

INOTE: Ask where is the audience’s source document

2. Complete a Stakeholder Analysis

For each Stakeholder identified, determine:

Are they critical for development of project tasks (Enabling Stakeholders) or critical for the successful implementation of a solution (Implementation Stakeholders)?

What concerns can you anticipate for each Stakeholder?

What positive outcomes exist for each Stakeholder?

What will be your message for each Stakeholder?

A Stakeholder Analysis should be completed/revised as critical aspects of the project change (I.e. scope changes, solution options become more visible, etc.)

A Stakeholder Analysis can be a sensitive document and is intended for internal team use only.

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Instructor Guide

Published Date

Example Stakeholder Analysis

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Instructor Guide

Published Date

Example: Stakeholder Analysis

Team Lead	M	H	+	ON-BOARD	6	MONTHLY UPDATE
Engineering Dept. Head	H	H	-	DEFENSIVE	9	SEPARATE BRIEF & FOLLOW-UP
Program Manager	M	H	+	ON-BOARD	6	WEEKLY UPDATE (E-MAIL)
Comptroller	L	L	0	UNKNOWN	4	TOLLGATES
Contracting Officer	H	M	0	WAIT & SEE	7	WEEKLY FACE-TO-FACE
Prime Contractor	H	L	+	ON-BOARD	5	INITIAL/ MONTHLY

Stakeholder

Name/Group

Project Impact

On Stakeholder

(H, M, L)

Stakeholder

Level of

Influence on

Success of

Project (H,M,L)

Stakeholder’s

Current Attitude

Toward Project

( +, 0, - )

Explanation of

Current

Stakeholder

Attitude

(list)

Stakeholder

Score

(H=3, M=2, L=1,

+=1, 0=2, -=3)

Action Plan

For

Stakeholder

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Instructor Guide

Published Date

3. Complete Communication Plan

Comes in many forms, but key elements include:

Target of communication

Frequency of communication

Media to be used

Be specific:

Example 1: A 30 minute verbal conversation, every Friday at 4 p.m., including topics …

Example 2: A weekly written update, to be completed by Friday end-of-day, to include, a) Activities completed this past week, b) activities to be completed next week, c) currents risk to on-time, on-budget completion, and d) action plan to resolve risks.

Revise, as necessary, as project matures.

Especially important to revise/update for project implementation

Obtain verbal agreement on each plan element from target of communication.

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Instructor Guide

Published Date

Communication Plan (Example)

Each DMAIC

Phase

As Needed

Project

Schedule

Expected

Outcomes

Report

Progress

Barrier

Removal

mail With

Attachments

Exec

Sponsors &

Deployment

Champion

Kick

off

After M and

Project

Sponsor

“

What

”

Progress

Awareness

Buy

mail

All Hands

Monthly

Team

Leader,

Green Belt

Support

Needed

Status

Buy

Solicit

Feedback

Briefing

Project

Sponsor

Briefing

mail

Support/

Remove

Barriers

Weekly

Team

Leader,

Green Belt

Team Status

Expected

Outcomes

Affected

Functional

Managers

Each DMAIC

Phase

As Needed

Project

Schedule

Expected

Outcomes

Report

Progress

Barrier

Removal

mail With

Attachments

Exec

Sponsors &

Deployment

Champion

Kick

off

After M

Project

Sponsor

“

What

”

Progress

Awareness

Buy

mail

All Hands

Monthly

Team

Leader,

Green Belt

Support

Needed

Status

Buy

Solicit

Feedback

Briefing

Project

Sponsor

Briefing

mail

Support/

Remove

Barriers

Weekly

Team

Leader,

Green Belt

Team Status

Expected

Outcomes

Affected

Functional

Managers

Audience

Media

Purpose

Topics of

Discussion/

Key Messages

Topics of

Discussion/

Key Messages

Owner

Frequency

Notes/Status

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Instructor Guide

Published Date

End Section 1

A3 Introduction

Letter

A Toyota-pioneered practice of getting the problem, the analysis, the corrective actions, and the action plan down on a single sheet of paper

Standardizes a methodology for planning and problem-solving. Gives structure to process improvement projects.

From launch to completion…a living document that changes as the project progresses

Prepared by individuals, teams, or any leader. A benefit to executives and managers at all levels. Used wherever there is a need for people to work together to get clarity on a problem or proposal and then to create a set of realistic and effective countermeasures.

What

Why

When

Who

Stakeholders/Team

Who has a vested interest in this project? Who cares if the process improves?

Who has to “buy-in”? Individuals? Teams? Managers? Customers?

Who uses this process?

Scope

Team consensus on the start and end point

Keep the team focused on the goals and objectives

Used to prevent scope creep

Background

What are the elements/history behind the current condition.

Why would this project be important?

What is happening within the process?

Problem Statement

A simple statement of the core issue/problem.

Be careful not to include solutions or conclusions.

Be careful not to ascribe blame and not to identify potential root cause

Good problem statements include:

What is the problem or opportunity for improvement (what)?

Where is the problem. Is it in your workplace or someone else's (where)?

How long has it been happening (when)?

What is the extent of the problem (extent)?

How large is the impact of the problem (impact)?

It takes too long to process a new account and mistakes are common.

The new account set up process for ABC Bank takes in excess of 30 days. The problem has existed for the past year. 85% of the new account paperwork require rework due to missing information. This has resulted in the cancellation of 15% of the contracts over the last 6 months.

WHAT

WHERE

WHEN

EXTENT

IMPACT

Example of a better opportunity or problem statement.

Example of a bad opportunity or problem statement.

Examples of Problem Statements

Goals & Objectives

What good looks like. The purpose for which this project exists (be specific)

How will we know when the project is complete?

SMART: Specific, Measurable, Achievable, Relevant, Time bound

Analysis can include any discovery data:

VSM

Fishbone

Time Studies

Financial Analysis

5 Whys

Spaghetti chart

Productivity calculations

Waste

Risk

Volume

Project Cost/Savings (Hard, Soft, Intangible)

Analysis

Contains analysis to substantiate both the reality of the issue and the validity of possible countermeasures.

Inclusion of visual analysis is encouraged

Plan

A mini project plan; or a short description of how the project will be handled.

Who does what and when.

Countermeasures

Activities put into place to mitigate the effects of the problem.

Some countermeasures will be more effective than others. For iterations during Do/Check, this can include a “history” of countermeasures that have been implemented.

End Section 2

My Voice

Voice of the Customer (VOC)

What is VOC?

Why is VOC critical?

How is VOC data gathered?

How is VOC data analyzed?

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I’m a

Customer

Who Are Your Customers?

I’m a

Customer

External Customers

Those persons or organizations which purchase your products or services

Internal Customer

Anyone who receives an output of your process

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How Well Do You Know Your Customers?

When a customer is not satisfied:

1%-5% complain to management or headquarters

45% complain to agent or company representative

50% do not complain at all

Reference: Young, John. “Lost in Translation,” ASQ Six Sigma Conference, Palm Springs, 2005.

Customer complaints

Warranty issues

Surveys

Direct contact

Focus groups

Competitors

SIPOC Process Flow

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If we do not understand the customers needs, then it is generally not possible to satisfy the customer.

Applies to both external and internal customers!

Reactive

Proactive

Capturing Voice of the Customer (VOC)

Complaints

Customer Service representatives

Focus groups

Surveys

Competitors

SIPOC

Customer Voice

Translate

Customer Requirements

Measurable

Needs vs. Wants

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Translating VOC into Requirements

Good customer requirements:

Are specific and measurable (and the method of measurement is specific)

Are related directly to an attribute of the product or service

Don’t have alternatives and don’t bias the design toward a particular approach or technology

Are complete and unambiguous

Describe what, not how

“I hate filling out this form!”

The form takes too long to fill out

The form takes less than five minutes to complete

Voice of the Customer

After Clarifying, the Key Issue(s) Is...

Customer(s) Requirements

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Diagnose VOC before prescribing requirements

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Actual Customer Statements and Comments	The Real Customer Concerns, Values or Expectations	The Specific, Precise and Measurable Characteristic
“I want to talk to the right person and don’t want to wait on hold too long”	Wants to talk to the right person quickly	No additional menu items on voice system Customer reaches correct person the first time within 30 seconds
“This software package doesn’t do squat”	The software does not do what the vendor said it would do	Every design feature needed is built into the package The software is fully operational on the customer’s existing system

Customer Requirement

Key Customer Issue

Voice of Customer Input

Translating VOC Into Customer Requirements

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SIPOC Diagram

SIPOC is a tool that depicts the entire flow of a process from suppliers to the customer. SIPOC is an acronym for each of the columns in the diagram:

Suppliers: the internal / external people or organizations that provide materials, information, or other resources for a process.

Inputs: the resources that are supplied.

Process: the series of work steps that transform inputs to outputs.

Outputs: the product, service, or information that is delivered to the customer.

Customer: the people, organizations, or process that receive the output. External and Internal Customers.

The last column on the tool allows for the input of the customer’s critical to quality requirement for the process flow.

Suppliers	Inputs	Process	Outputs	Customer	Critical to Quality

SIPOC Diagram

Inputs are the resources that are required to create outputs.

Process input quantify cost, quality, and speed at various points in the process:

Labor hours

Errors

Rework

Task time

etc.

Outputs

Tangible products or services.

Identifies metrics that gauge process performance.

Linked to the CTQ measures as defined by the customer.

PROCESS

Suppliers	Inputs	Process	Outputs	Customer	Critical to Quality

End Section 3

Value Stream

The entire set of activities running from raw material to finished product or service seeking to optimize the whole from the standpoint of the final customer

Link the value to the Customer – what is important to the Customer

What & Why of Value Stream Mapping

A visual tool of flow of Material and Information

Physically observing the process area in question

A map of all actions currently required to deliver a product/service

Includes all Process Owners

Three phases of VSM:

Current State

Ideal State

Future State

WHAT

WHY

Focus on improving the whole process and not optimizing silo’d pieces of the process

To help understand how your business actually works (you don’t understand the current process if you can’t draw it).

Discover 8 Types of waste :

Defects/Rework

Overproduction

Waiting

Non-utilized Creativity

Transportation

Inventory

Motion

Extra Processing

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Major difference from other maps – VSM includes INFORMATION flow

Physical map is large and allows for multiple folks to touch and see the flow. Usual questions from the “audience” – does this really happen? Why do we do this? The process opens the eyes of all stakeholders.

Value Stream Mapping (VSM)

Create current state value stream map

Identify opportunities for improvement (Kaizen stars)

Prioritize opportunities using priority matrix

Create ideal state map

Create future state map

Create plan to get to future state

How

What is the difference between a “flow chart” and a value stream map?

Layout the process in “excruciating” detail

Use multiple viewpoints

Typically leave out the manager. (Why?)

Purpose of a VSM:

To visually identify the 8 wastes

Identify VALUE ADDED vs. NON VALUE ADDED WORK

See opportunities for improvement

Use the current state to create a new future state (Why?)

Can use electronic or paper

VSM Example

Walk the Process

Visualize yourself in the place of the product / information

Walk the entire process

Interview personnel who touch the process (look for problems that may be occurring)

Measure people and/or product travel distances

Look for constraints in the system (shared resources)

Look for 8 types of wastes

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Value Added

Goals of Value-Added Analysis

The objective is to:

Eliminate the hidden costs that do not add value to the customer

Reduce unnecessary process complexity, and thus errors

Reduce the process cycle time

Increase capacity by better utilizing resources

Focus efforts in the right waste-removal places

Value Added

Waste

Value Added

Waste

Value Added

Lean: Value Stream and Non Value Example

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Any step or activity in a process is considered VALUE ADDED (VA) if it meets ALL of the following:

What is Value Added (VA)?

Value Added

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The Customer is willing to pay for the activity/step.

If the Activity/step actually changes the form, fit, or function of a product or service

If it is done right the first time (does not create rework)

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Value Analysis

Value Added

Non-Value Added

NVA

(but necessary)

Value Added (VA)

Activities that change form, fit, or function of a product or service

Activities the customer wants to pay for

Activities done right the first time

Non-Value Added (NVA)

Activities that do not change form, fit, or function

Activities that fall under any of the eight forms of waste

Activities not performed right the first time

Non-Value Added, but necessary (NNVA)

Activities causing no value to be created but which cannot be eliminated based on Regulation, Compliance, & Law.

Be stingy with “NNVA” designations! Require proof that a step is required

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Define value added and solicit the class for examples of value added activities they perform or have seen

A good question to ask when trying to determine if something is value added, especially in transactional processes, is “If I were the Customer, would I be willing to pay for this?”

(mouse click)

Define Non-value added and solicit the class for examples of non-value added activities they may perform or have seen or experienced

Labor recording

Inspections

Define waste (needless activities that consume resources but don’t add value to the product) and solicit the class for examples of waste

Examples of Non-Value-Added

Long set-up time

Incapable process

Poor work methods

Lack of training

Lack of organization

Layout

Irrelevant performance

measures

Redundant systems

Incomplete information

Functional handoffs

Batch processing

Unnecessary data

Transportation

Approvals

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NVA activities account for 50%-90% of product cost

People are not NVA, tasks are

NVA does not mean unimportant

Don’t take it personally!

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A More Traditional LEAN VSM

Phases of the Value Stream Map

How the process works today. No optimization or improvement.

Significantly Improved process that solves many current problems and waste

How could the process work ideally without any limitations or restrictions?

Current State

Ideal State

Future State

Relentless Pursuit of Perfection

Picture your value stream with no waste

Create flowchart using only the Value-Added steps

No stops, piles, backups, wait time, parallel paths…

Assume that anything is possible

Ideal State VSM

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Visual of improved material and information flow

Unites Process Improvement concepts and techniques

Used to drive detailed implementation plans

What type of improvements are needed and why?

What is a Future State Map ?

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NARRATIVE:

► Just like a Current State Map – only assume improvements have been made. Visualize the “best” or how you need the process to perform

► If you don’t create a future state map and put a plan in place to achieve it, your current state mapping efforts were likely pointless

Creating a Future State Process

Taking into account the current organizational readiness, create a future-state recommendation that:

Proposes specific process improvements

Documents what the new state will look like

Identifies additional process controls and measures

Outlines a roadmap to move the process to the proposed state.

Additional thoughts on the Future State

To streamline the current-state business process, use analysis from improvement tools and consider these areas:

Value-Added Assessment

Duplication Elimination

Simplification

Cycle Time Reduction

Error Proofing

Standardization

Reducing process lead time

Reducing inventory

Cost reduction

Increasing available capacity

Decreasing the area footprint

Bureaucracy Elimination

Supplier Partnership

Automation, Mechanization, and Information Technology.

Class Exercise:

Create a Current State Map including VA, NVA & NNVA.

Create Ideal and Future State Map

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Value Added

Non-Value Added

Walk to LS

10’

5 sec

Turn on LS

0’

2 sec

Walk Back

10’

5 sec

Non-Value Added

Value Added

Non-Value Added

Clap to turn on LS

0’

2 sec

Value Added

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