Ever had an annoying fly buzzing around you?  You swat and swipe and you just can't get it away from you until you grab the right tool.  I certainly have.  Much like a fly swatter is the right tool for getting that pesky fly the swot analysis is often times the right tool to help you identify four very important elements of business, projects or venture objectives.

  Almost every organization in the world knows by now that the 5S system is an efficient, low maintenance and high impact means of driving continuous improvement.  The system itself can be used in offices, shop floors and software systems.  So why is it that many who have tried this powerful tool only yield small returns or feel as though something is hiding?

  So you have planned out some improvement for an existing process, product or service but you want to ensure that it is a success.  One of the best ways to make sure improvement goals are a success is to plan for possible failures.  FMEA or failure mode effects analysis will do just that for you.  FMEA is a method of identifying possible failures in a process.  As the name implies "failure modes" hints that it will help us to understand the possibilities of failure.  Sound like a valuable activity?  It certainly is,  so how is it performed?
  Before we get started with an overview of FMEA you need to know that there are a few different FMEA methods.  One is for process oriented analysis.  You may have heard it referred to as PFMEA.  The other type is used in the design or redesign of a process, product or service this type of FMEA is referred to as DFMEA.  Today we will not focus on either one specifically.  Remember you can find templates here.
How to Perform FMEA

1. As with almost any other project or initiative you need to define the details of the project.  This would include such elements as the objective of the activity, estimated timeline, history, resources you might need and why exactly you are undertaking the initiative.  A project charter can be used to lay out and define the the initiative.
2. Now that you have defined your project and assembled together a cross-functional team of SME's we can begin gathering measurements and understanding the current state of the process.  While there are a few different methods of understanding the current state or as is process or product the absolute best method is usually to map the process out.  However if there is no process in place using a quality function deployment approach may be helpful.  Tools like the house of quality can help you to ensure you are aligning your abilities with the needs of the customer.  
3. After the team has gained a good understanding of what is needed or what exactly is going on you will be ready to begin identifying potential modes of failure for each step in the process.  The current state map should have identified initial issues for you to focus on.  These potential failures should be listed next to the appropriate process step in your template. Once you have your potential failures link them up with how they will impact the customer. Try to keep in mind answering the question "what goes wrong when the failure occurs and how severe is it?"  This answer combined with the impact on customer requirements will give you your first score which is the severity rating of the potential failure.
4. Having now listed potential modes of failure and established an agreed upon severity score the team can now turn its focus to the actual causes or root causes of the failures.  
5. The next step in our FMEA method is to identify and rate the frequency of the potential failures occurrence.  This is an important part of the fmea process because it helps us to understand where we will focus our corrective activities.  The risk priority number that fmea establishes is based on severity, frequency and the level of detection or how well we can detect and prevent failures prior to reaching the next customer (internal or external).  One very effective way of seeing level of occurrence or frequency is through the use of check sheets and pareto analysis.
6. After a frequency score has been documented we need to document the current controls that are in place.   These controls are placed in the tab labeled "current controls."  These could be any realm of activities that the department or organization currently uses to prevent failure from happening or risk from escalating.  One thing to note is that some process steps may not have any control in place, these boxes remain blank.
7. Once the current methods of control are documented we will again attach a score to the control methods.  Although criteria varies from organization to organization ultimately you will be scoring detection based on how well the existing controls either prevent the failure from occurring or detect it.  
8. The next step is to calculate your RPN or risk priority number.  If you are using a template (hopefully) the number should populate automatically, but if you are not you will need to multiply your severity score by your occurrence or frequency score and by your detection score (S x O x D = RPN).
9. Finally we are ready to recommend actions that will reduce the possible failures severity, occurrence and improve your ability to detect or prevent the possible failure.  These recommendations should have an owner attached to the activity and should provide status as to what is happening with the recommendation.
10. Once the team agrees on the action plan move forward by implementing the agreed upon activities.
11. Last but not least calculate the results of your action plan with the RPN.  One best practice is to continue to set improvement goals targeting improvements or reductions in the potential failures.

  Keep in mind that fmea is meant to identify and completely understand a product or processes potential failure modes along with how they impact the customer.   FMEA will also establish a level of risk associated with the identified failure modes, effects and causes and will assist in prioritizing solutions and narrowing down a seemingly long list of actions.  But like any other improvement project you will need a team of experienced and skilled professionals to properly gather "failure modes" and "analyse the effects."    

  In the first three phases of the REDUCE methodology, required data is established, the value stream is engaged for a deeper understanding and internal and external activities are differentiated or separated as defined in the SMED system.  The first two phases are largely gathering information and analysis while the second begins to separate tasks and define what can be done while the machine is running and what can be done while the machine is stopped.

​  Of all the steps in a setup or changeover reduction, separating internal and external activities may in fact be the most important as well as the simplest steps you can take.  In the most general sense, performing activities like preparing tools, kits and materials as well as transporting items while your line is running can reduce setup time by as much as 50%.

Before improving anything in a setup, we must first consider the current state or common problem areas of what we are improving.  In the case of setups, changeovers or turnarounds there are traditionally 4 basic steps where problems and opportunities fall.  Those steps are:

1. Preparation.
2. Removing and Mounting Tools and Parts
3. Calibration.
4. First Articles, Trial Runs and Adjustments.

  If you travel into any machine shop, office or hospital facility in the world guaranteed you have seen a changeover before.  The changeover occurs in between the last good part or service until the next good part or service.  Some examples would be:

1. Changing tooling.
2. Patients service completion.
3. Changing paper in a printer.
4. Taking one batch of cookies out of the oven in order to start a new batch.  

This "in-between" time is usually spent performing wasteful activities which often result in long changeovers that inevitably eat up value added time.

  Almost every project will include brainstorming of some kind at some point in the project lifecycle.  Brainstorming sessions can be a powerful gateway to unlock solutions, make issues visible, prioritize actions and bring experienced minds together.  When individuals come together as a team, innovative ideas can be born.  One of the struggles of being a part of a powerful and productive brainstorming session is that they generate many great ideas and often reveal a large amount of issues.  This can leave a group feeling overwhelmed.  Often times, the wide array of ideas can be hard to organize, understand, validate and act on.  Worse yet, many members of a team might leave feeling invalidated, unheard or completely shut down. 
  

  The fishbone diagram, cause and effect, or ishikawa diagram is one of the most common quality tools used today.  Best known by its resemblance to a fish's body the fishbone diagram is used to show the many possible causes for an effect. The tool is used to help coordinating brainstorming in an effort to discover root causes.

​  The first day on the job is always an exciting experience for any new employee.  A new chance to show your skills, meet new people and grow in a new organization.  Excited to learn something new in training you get thrown to the wolves and here the phrase "you will figure it out."  That can be a bit scary to say the least.  Surprisingly as you start figuring out everything has procedures connected to it.  Three days later and you have mastered erp, assembly and every office function in the organization.  A bit surprised by this you're off to a great start!

   Have you ever gotten into a discussion of why? because. Why? because.  Last weekend I had the great pleasure of this discussion for what seemed to be the first time.  I never really put much thought into it but asking why never really was a difficulty for me.
  Oftentimes when we want to use the 5 whys to drill from issue to root cause we end up in a pattern of why, because. Why, because.  Or, we conduct a long analysis only to find out that none of our levels of causation matched at all.  One of the best known examples of a 5 why analysis was performed by the master Taiichi Ohno.  He used the example of a welding robot stopping in the middle of its operation.  Like a sensei does he naturally went from initial issue to root cause with almost no difficulty at all.   So, how do we begin developing this level of mastery with regards to root cause analysis?  Here are a few important things to keep in mind when looking for the ROOT cause.

  For years now teams have come together on baseball fields, football fields, soccer fields, race tracks, offices and homes in what has become known as the huddle.  These quick and spirited standups often last no more than 5 minutes and help team members refocus their efforts while planning for things to come.  Whether the purpose is to realign or align team members focus towards an objective, the daily 10 - 15 minute scrum, stand - up or huddle works. ​

   ​Many years ago, newspapers lined the streets of almost every city in the world.  People would gather at the "newspaper stands" and browse each page while sharing a story or two.  Word of mouth and the rugged ink stained paper were the main drivers of news, suggestions and ideas.
  Today we still have ideas and suggestions, but things aren't quite as simple as the good ole days.  Today making a suggestion often involves filling out a tedious small slip with more information than you can even read, shoving it in a bin that nobody collects and then hoping it gets "approved."  Here's the idea!   Workers see it all, touch it all and often have the closest connection with a process.  Why is this significant?  That connection can act as the perfect vehicle when looking to identify issues, collect improvement suggestions and or come up with innovative new ideas.   The best part is, you don't have to walk to a newspaper stand to do it.  

  The Kaizen template or improvement newspaper is a powerful tool that can be used with employees. They can suggest improvements, possible solutions and even create opportunities for improvements without necessarily having any idea of a solution.  Sounds a bit crazy doesn't it?  Well it is!  We’ve all been there before, a problem you see all the time and no ideas on how to solve it.  The Kaizen template enables employees to support improvements whether they have a fix or not. So how will this tool help employees?  To start, the suggestion or person filling out the kaizen template will need to capture a few pieces of information and document the information on the kaizen sheet.
  Here's the important thing to understand, no matter how much information you capture, it will do no good if it's shoved in a box waiting for review or hidden on a desktop only to become trapped in cyberspace.  
  Like any other lean tool, the kaizen template works best when it is made visible.  Here are a few important things to keep in mind when using improvement newspapers for a suggestion system.

1. Make it Visible
  Like we mentioned earlier improvement newspapers should not be contained within a network or hard drive, they need to be visible. Think for a second to a problem you’ve had before but couldn’t solve.  Eventually you share with a friend and they share a possible solution.  Immediately you think, “why didn’t I think of that?”  When opportunities are visible everyone can see, understand and help each other.  One advantage when using a computer to fill out the suggestion is that there will be no sorting through legible and illegible papers.  You can fill the paper out and print it out, placing it in an area where everyone can see the idea and before you know it someone is there to support you in finding a possible solution.

2. Keep them Alive
  About the era when tv was in full swing and computers began to emerge newspaper stands were laid to rest.  Now we get quarter machines by selected restaurants and no more standing with our friends talking and sharing the latest news on the front page.  Fortunately, Kaizen templates are far from dead.  They are in fact one very effective way to obtain opportunities for improvement but they must be kept alive.  Monitoring the suggestions during a huddle is one way to keep status up to date and ensure that each suggestion is moving forward.  In a huddle you can address the needs of the suggestion and help ensure ideas continue moving forward.  Possibly the most valuable aspect of this constant and continuous activity is that the people who make the suggestions will begin to understand that they are part of a team and their ideas mean something to others.  When people get a sense of belonging, support, action and appreciation your possible improvements will increase sufficiently.

3. Simple
  If you have ever used a new tv changer there is a bit of a learning curve to it.  Directions in hand and a thousand different settings to program it will never be as simple as walking to the newspaper stand to get some information.  The same principle should apply to our kaizen templates or improvement papers.  Not everyone knows how to use excel and not everyone will understand the process right from the start.  That makes it the perfect opportunity to train employees and go for a Gemba walk.  The bottom line, make it easy for the people filling the papers out.  The only thing that employees should be responsible for is filling out the template and doing their best to discover the root cause.  

  Although we may never see newspaper stands lining the streets again, kaizen templates or improvement newspapers could line the huddle boards of your organization.  They could fill white boards, line the walls and flow from the mouths of team huddles.  All while capturing innovative ideas from talented employees and driving improvement initiatives day in and day out.  The best part about this great tool is that it won't even cost you a quarter.  

  If you would like a template for a Kaizen/Improvement newspaper to get started click on the button below and begin experimenting with different tools that will help transfer improvements from idea to action.

  When it comes to understanding a process, few tools are as powerful as the SIPOC map.  The SIPOC can be used in both process mapping and value stream mapping.  When used as part of a value stream initiative the map shows material and information flow in forward and backwards loops, this allows teams to identify potential gaps from a systemic view which helps us understand the effects of activities both upstream and downstream. Today we will look at the SIPOC map from a process mapping perspective.  

  The tools name SIPOC is rather catchy.  Each of the letters provide us with insight as to portions of a process we should review when mapping from a high level.  

• Suppliers
• Inputs
• Process
• Outputs
• Customers

  When using a SIPOC map keep in mind that the suppliers provide the inputs to the process.  The process which is what you are trying to improve should in some way provide value or transformation to the inputs which results in an output that needs to at minimum meet your customer's expectations.

  The SIPOC diagram is most often used to identify opportunities for improvements before a project begins.  Because the tool shows us all relevant aspects of a process it can also be useful when a team needs to:

• Identify who the suppliers (internal or external) of inputs are.
• Clarify the scope or boundaries of a process.
• Understand requirements that are needed by customers.
• View the process/system from a high level.

  One of the added benefits of a SIPOC diagram is how easy they are to create.  Follow these simple steps and you will be able to create a SIPOC map:

1.  Find an area as close to the process you are mapping as possible so that you can see the process happening and engage with people at the gemba.

2.  Start by mapping the process out.  You should map no less than 4 steps and no more than 7 high level steps.

3.  Next identify the process outputs.

4.  Now identify customers (internal/external) that will receive the outputs.

5.  After you have identified customers, document the inputs of the process.  These are the X's that are transformed into outputs or Y's by the process.

6.  Lastly Identify any suppliers of the inputs.

7.  If at all possible identify requirements that might be known already.  If you are following the DMAIC method these CTQ's will be verified in the measure phase.

Example:

  After using a SIPOC map we can now see all the elements of the process clearly.

  1. There was an inquiry for a bike repair which resulted in a scheduled appointment date and time.
  2. Next the owner came with his bicycle ready for a diagnosis which resulted in a recommendation and an estimate to the bike owner.
  3.  The bike rep. then received permission for the order and prepared his purchase order for the bike mechanic.
  4.  The parts were then ordered by the manager which was the internal approval for the bike rep.
  5.  The vendor then delivered the parts which was the approval for the bike mechanic to perform the repairs and ultimately resulted in the customer being called.
  6.  Then through observation the bike was repaired.

  If you would like to download a free SIPOC template simply click on the link below.

  One of the most effective tools any process orientated employee can use is the process map.  The process map has been around since the dawn of time and has evolved into many different iterations in order to meet users needs.  Along with the flexibility of a process map it's quite effective at showing a user where pain points in a process might be.

  Process mapping refers to a tool used to make business processes visual.  The process map documents an entire process step by step which allows us to see relationships between inputs and outputs of a process along with clear identification of decision points and many other steps in the process series.  The process map is generally used towards the beginning of initiatives in order to understand the flow of a process but it can also be used in support of almost every phase of improvement projects. ​

Different Types of process maps:

  Traditionally there are many different types of process maps that have been developed and used.  For example a SIPOC and a value stream map are forms of process maps but generally provide a much deeper level of understanding as they identify information flows too.  In general there are three different categories of process maps:

1. Systematic maps - Show us the entire system at a very high level.  Systematic maps often extend beyond an organization's boundaries. 
2. Cross functional maps - Cross functional maps will show us a process from one end of the organization to the other.  They allow us to cross department functions and see clearly where ownership of each process step is held at.  The use of swimlanes is one example of a cross functional map.
3. Process level maps - Process level maps give us a detailed view of a process.  These types of maps are very useful for cells and production lines contained in one department.

  In general process maps provide us with a visual display of the sequence of steps within a process.  They can also be used as a method of communication.  We have all been a part of a project that goes around and around in circles trying to remember and figure out what actually happens in a process.  When we make those steps visible the process is communicated to everyone in a more understandable language.  There may be times where you need to add in steps here and there but with the map visual and near the area where the process actually occurs, the communication of the process is much more accurately defined.  Another very common reason for process mapping is that a visual map can aid us in the analysis of a business process.  Some of the ways we can use process maps to analyze are:

• Identify parts of a process where errors occur such as re-work flows.
• Establish measurements/data at various points of the process.
• Show boundaries.
• Show stakeholders.

  One of the drawbacks often associated with process mapping is that it tends not to capture elements such as information flow, where a value stream map gathers both information and material flow.  

  Process mapping is a fairly simple process to learn.  But there are a few general rules to follow when you build a process map.  

• The first thing to keep in mind when you are building a process map is to start from the gemba, go and walk the process from start to finish.  Take notes if you can, but really understand how things are actually happening where the process takes place.
•  If at all possible try to establish and area where you will be building your process map close to the gemba or where the work is done.  
• Another key element to remember is to include the people from the gemba in the mapping process.  They are the experts who work on the process everyday and can identify what is actually going on.
• Next, start your map from a high level.  Be sure that everyone has a good level of understanding of the process before you begin digging in.  Remember problem solving will come later so keep a parking lot handy where you can place possible solutions but don't address them until the appropriate time.  
• Make the map as simple as possible.  There are lot's of symbols but try to stick to the basics.
•  Last but not least be sure to validate your map with stakeholders.

​Different Tools for Building your Map:

  Process maps can be built with stickie notes and butcher paper, excel, powerpoint, word or in vizio.  Over the years I have grown to love stickies and butcher paper because it is much less restrictive and can be built anywhere. For our purposes today though we will use excel to build our process map. Today we will cover three types of process maps:  The top down flow chart, the linear flow chart and the swimlane or cross functional flow chart.  If you haven't downloaded a template yet, you can do so by clicking here.

  The first thing you will want to look over is the first tab of the template.  Excel makes it very simple to choose your symbols by simply clicking on the insert tab and selecting shapes.  At the bottom of the shapes you will notice symbols for building a flowchart.  You can try to memorize them right away but there is also a reminder of the symbols meaning in the first tab.

• Serve Cake
• Eat

​  So we input those high level steps into the template just as it's shown below.

  The great thing about a top down chart is that we can still drill into each of the process steps below it.  2. We then can ask the subject matter expert,  "what do you have to do to get the ingredients out?"  The person baking the cake might say:

• I need to get out eggs.
• I need to get out flour.
• I need to get out sugar etc.

Linear Flowchart:

  The next type of map you will find in your template is known as a linear flowchart.  The linear flowchart is a diagram that displays the sequence of work steps that make up a process.  It will show decision points, rework loops and a few other elements.  Let's make a linear flow chart for our cake.  

1. Insert terminator symbol for our starting point.
2. Insert a rectangle or a process function for get out ingredients.
3. Next let's say we need to check to see if we have all the ingredients.  This is a decision point so we will enter our diamond.  One path will be yes and one path will be no, just as shown below.

Swimlane Flowchart:

  The final flow chart we will look at is the swimlane flowchart.  These types of flowcharts are often referred to as deployment flowcharts too.  The swimlane flowchart is used to distinguish what  job function of the organization is performing what steps.  They can be used to show back and forth activities between steps and unlevel workflows.  

1. Start off by identifying the departments/job functions within the process you will be mapping.   In our case we will map a grocery check process.  Our departments or process owners are: customer, cashier and manager and bagger.
2. Now we will map the process flow the same way we did with our linear flow but we will keep activities in the swimlane of the owner just as shown below.

  As you can tell in the swimlane diagram above we can see very clearly who is responsible for what process step.  If there were overlapping steps we would see those stacked which may be a trigger that there is an opportunity for improvement.   

  Like any other map a process map has a few unspoken rules we should do our best to adhere to.  First and foremost be sure to label the process name and the team somewhere on the map just in case there are any questions.  You may also want to place a date on the map of when it was created.  Next the process map should be very simple to read, it needs to go in one direction not up and down and side to side.  Try to keep a flow that is either left to right or top to bottom.  You will also need to identify start points and end point and keep all of your loops closed.  Did I include all these unspoken rules?

  We mentioned a few items to look for in our process maps but let's summarize them here now that you are an expert.

• Keep your eyes peeled for redundant steps.
• Be on the lookout for back and forth activities.
• Delays.
• Rework loops.
• Inventory.

  Process mapping can be a very powerful tool to use in improvement projects and can help others see opportunities to improve too.  You never know, if you do enough of them you might start thinking in a process orientated manner.

  Selecting a project in Lean Six Sigma can sometimes be a daunting task.  But like any other project it is a necessary step that you will have to take at some point.  One very important piece of this early decision comes in the form of a document called a project charter.  The project charter is a very important piece of the puzzle that we have written about before in a post titled The Project Charter.  The project charter is one of the first essential steps in many different types of projects.  It acts as an informal contract between the organization and the team.  The charter will set a clear outlook on what the team's objective is and how their success factors will be measured.  Additionally it contains historical evidence for the project, a clearly defined problem statement, a goal statement, the boundaries associated with the project, team members, measurements and an estimation of the time needed to complete the project's implementation all on one sheet of paper.

Where does the charter come from?
  In general a project charter will normally take one of two roads of development.  The first is that a charter is developed by leadership or the top level management of the organization and then is presented to the team.  The other very common way a charter can develop is through the team's discovery of opportunities or issues that might need to be solved or improved.  The team then pieces together a project charter and presents their findings to upper management.  No matter how the project charter is developed, consensus and buy in from upper management and the team is absolutely critical to the project's success.  This agreement of the project's direction will show the rest of the organization that both the team and upper management approve and endorse the project moving forward and will provide the team with the support and empowerment they will eventually need.  

What is included in a project charter?
 
  Basic identifiers - The charter should always begin by defining basic elements such as the company name and the project title.  Like a contract this identifies who the contract is between and a general title to keep projects organized.

  Business Case (historical reasoning) - Next the charter should include a clearly written one or two sentence business case.  This simple two sentence business case will define "why" the team has been formed and how the project aligns with the organization's strategic direction.  In other words the charter will show how the project aligns with the vision and the mission of the company.

  Problem Statement - After the business case is clearly defined the charter will very clearly tell us what the issue or opportunity is that the team is going to focus on.  This is called the problem statement.

  Goal Statement - The next important element is the goal statement.  The goal statement lays out the objectives that the team is expected to achieve.  These expectations or the goal statement should always be agreed upon by both the team and the team champion.  A very important piece of the goal statement is to be sure that when it is written out, it is done in such a way that makes the statement measurable.  

  Scope - The project charter will also include the boundaries or the scope of the project.  These boundaries make it clear what is acceptable and what is out of the project scope.  It is very important that the boundaries are clearly defined in the scope.  This part of the charter is what will empower and hold the team accountable for their actions. The scope will give team members the freedom and support they need to focus their energy on the important tasks at hand.  
  
  Measurements - As noted earlier the goal statement should be worded in such a way that makes the objective measurable.  Those measurements or Key performance Indicators are placed on the charter so that the team can identify baselines of where they are starting from, where they are headed and eventually actuals that can be used for reflection or as a means to see how near or far the team landed in relation to their target. 

  Team Roles - Another important designation that is contained within the project charter are the roles of each of the team members.   This simply lays out who's on the team, who the champion is and who the sponsors are along with any other members that might apply to the project.

  Milestones (schedule) - Last but not least the charter will include a high level project schedule or a gantt chart.
  
  All of the information outlined above is normally documented on one piece of paper, with each category being very clearly defined, concise, accurate and to the point as possible.  It's quite a bit of information I know, so let's list some of the advantages related to documenting all this project information.

Example and walkthrough

  If you haven't downloaded the charter template yet you will need to do so now.  You can click right here to get your template.  Now that you have your template let's get started.

  STEP 1 - As we noted earlier on the first thing we will need to document is the basic identifiers.  Let's say our company name is Bob's machine house, I know original right?  Next we will input our project title.  Our title will be Accounting Cycle Time Reduction.

  STEP 2 - Now we are ready to identify our business case or the historical reasoning for the project. This is a short summary of our strategic direction and reasons for the project.  In general your short summary should include either quality, cost or scheduling issues or opportunities.  Most of the time the business case will be directly related to either:

• Design of a new process or product.

Or

• Redesign of an existing process or product.

  Your template should have a general format for the wording so we just need to fill in a few spots in the statement.  Let's give it a try.  As an (appropriate level i.e. organization, department, group) our (area of problem) performance for the (name department or area) area is not meeting (objective, goal, target or measure).  This is causing (type of problem) that are costing $(list estimated amount) per (time frame).  Keep in mind that a cost to benefit analysis should be performed prior to establishing the charter.  One tool you can use to calculate the cost to benefit is the Pareto Priority Index.  It goes without saying but if the costs outweigh the benefits than the project should not move forward.

  Step 3 - After our business case is documented we are ready to define our problem statement.  This statement should be as detailed as possible.  The problem statement should provide insight in the following ways:

• What category the problem falls under.
• Where the problem occurs.
• What the problem is.
• The magnitude of the problem (metric e.g. %).

And

• Explain why it is so important to correct or improve the problem.

  The template will again provide you with a general problem statement that you can use.  We will just need to fill in a few specific areas just like we did with our business case.  Our (category of problem) at the (where is the problem?) have not been meeting (What is the problem?).  As a result of this (connect a metric with the magnitude of the problem e.g. %) It is crucial that we (correct or improve) this because (why it is important).  
  One thing to keep in mind as you define your problem statement is that it should not be leading in any way.  Make sure the statement is neutral and does not pass preconceived judgements or diagnosis.

Example - Problem Statement

  Our cash to cash cycle at the accounting process has not been meeting the standard of 30 days.  As a result of this our funds are invested in inventory 50% longer than we expect.  It is crucial that we improve this because we are not getting a return on our investments quick enough.

  With a neutral statement like this, the team has no preconceived notions, allowing them to work towards the project objectives with an open mind.

  STEP 4 -  Our next step is to gain consensus on a goal statement.  As a general rule of thumb goal statements are generally in the realm of 50% improvement or reduction depending on the goal. We will again use the standard goal statement format in the template.  The statement might sound like this:   The Goal is to reduce the cash to cash cycle time by 50% resulting in a reduced, cash to cash cycle of 15 days.

  STEP 5 -  Once everyone including the project champion have agreed on the goal statement we then need to define our project boundaries or the scope of the project.  There are two boundaries you will need to clarify here.  The first is the longitudinal scope which tells us where the process starts and where the process ends.  One example of our cash to cash cycle time  might be:

Example
  Start - When materials are acquired  and  End - When we receive payment.

  The other boundary we need to define in our scope is the lateral scope.  This refers to the "width" of the process.  One example of the lateral scope for our cash to cash cycle time might be:

Example
  The cash to cash cycle time for our accounting project only applies to the accounting and purchasing department but no other department is applicable in the entire organization.

  After combining the two boundaries our scope tells us that we need to be empowered from the point materials are acquired to the point where we receive payment only within accounting and purchasing.  One thing to note with scope is that you may want to include more specific level of authority than just lateral and longitudinal.

  Step 6 - Next we need to define our measurements.  There are at minimum three measurements you should establish and track.  A baseline, A future state and the actual results after the project is complete.  Since our goal statement and problem statement already defined the metrics we need, we just need to input them into our template in the measurement section.  The one that I will use is the number of days for the cash to cash cycle time, you may want to use others too though.  Since we know our standard of 30 days is being exceeded by 50% as defined in the problem statement, we can input a baseline of 45 days (30 days + 50% of 30) in the current state.  Our future state measure was defined in our goal statement.  So we can input 30 days (45 days baseline - 15 days improvement) in the future state which tells us we need to improve by 15 days.  The actuals will be measured when the project is complete.  Remember since you more than likely will have more than 1 measurement to input those too.  

  Step 7 - Your team roles should be somewhat self explanatory, just be sure to input your sponsor, coach or champion and each of the team members in the template.  

  Step 8 - Last but not least we need to establish a schedule for our project.  This schedule defines the amount of time you think you will need from the start of the project to the complete and full implementation.  The template includes a scheduling tab that you can enter in the stages you want to measure.  The dates will automatically populate back to your charter, but let's look at one example just to be clear.  If I were using the DMAIC method I would want to make my start and complete dates visible for the Define, Measure, Analyze, Improve and Control Phase.  If you are using another methodology simply plan the high level steps of that methodology the same as we did with the DMAIC example.

  Now you have all the necessary information on your project charter to move forward with your improvement.  Be sure to remember though that the charter should be revisited every day of the event to adjust and monitor the charter.  Even if you don't feel like doing it, just do it.  There will be times where new people join the project and it will save you a lot of time and energy if you can hand them an up to date Project Charter to catch them up to speed.  

  In almost every project you perform in both lean and six sigma teams will bring a long list of experience, talent and solutions to the project table.  But often times it can feel overwhelming when trying to decide which of the solutions to move forward on, especially if you have limited time for implementation.  So how do we complete this important project task without losing all of our hair?

What is the tool used for?
 
  The cause and effect matrix, C&E matrix or XY diagram is a great tool that can do the job quite effectively.  The XY matrix takes a list of possible X's and narrows them down into a more manageable amount of inputs.  Similar to the way a PPI measurement works in selecting projects the C&E/XY matrix helps us to prioritize solutions for implementation.  

How do we use the tool?

  First and foremost let's recall our formula that we use in six sigma projects,  Y=F(X).  We will use this same formula in our C&E/XY matrix.  The Y's or the red cells represent process outputs and the cells above our Y's which are yellow represent our customer's voice or the level of importance the outputs are to the customer.  Next we have the grey cells which shows us our input variables or our X's.  The X's are what input variables you will use in your attempt to accomplish the Y or customer desire.  Finally we have our blue cells which tell us the level of impact or correlation each input has on the output.  So let's define a process for using the C&E and walk through an example.

1.  The first thing we want to do is define the the process outputs.  This is simply the end result or customer desire that we are trying to achieve.  Let's say we are listing some important outputs for a hamburger we are making.  

will score each of the outputs on a scale of 10 to 1.  10 being the most important and 1 being the least important.  For best practice your most important Y will be your only 10, however your other Y's can and may score the same.  

  Inputs could be anything from initiatives to projects or other activities you will use in order to achieve the outputs.  There are many different ways that you can gather suggestions for improvements like brainstorming and gemba walking.  Any way is acceptable just be sure to place those inputs in the grey boxes.

5. When this data is in the cells you see a total number and percentage number automatically populate.  We first want to look at the total column.  In the case of our hamburgers our priority would be first creating a standard for making the burgers, then adding a special sauce to our burgers.  The way we read is by looking for the highest number and placing our options in descending order going down.  

  Although our hamburger example was only in theory the XY/C&E matrix will be a very valuable tool for your team to use when you have multiple solutions in mind.  As always using any data that may exist is the best way to get the most accurate results, however if there is no type of data qualitative information will be very helpful.  Just remember that if you use the matrix based on qualitative data that the best thing you can do to get accurate results is make the team cross-functional.  

  Like a contract between you and a car salesmen the project charter acts as an informal contract between the organization and the team, department or group of individuals who will be executing the improvement initiative.  Project Charters are used in Lean, Six Sigma and many other Project Management Initiatives to provide guidance and direction for what you have been tasked to do.  

What is a project charter?

  Let's start by first defining what a project charter actually is.  The project charter is one of the first essential steps in many different types of projects.  Like we mentioned earlier the charter acts as an informal contract between the organization and the team.  It sets a clear outlook on what the team's objective is and how their success factors will be measured.  

  We have included a business case sample format in the charter template for you to use when you download it.  The next piece of information that a charter includes is a problem statement.  The problem statement gives a more detailed look at the issues or the symptoms that are a result of the problem the team will be focusing on.  A good problem statement will answer what is wrong, where it is occurring, how big the magnitude of the problem or opportunity is and explain why the opportunity or problem is so important.  
  After the problem statement the charter will typically define the goal.  In summary this is a statement that describes the anticipated results of the project.  The goal statement is usually connected to predefined measurements.  The measurements are referred to as key performance indicators.  These measurements should define the baseline or the current state so that the team knows where they are starting from.  The team will also define where they think they can get to or the future state measurements.  These measurements must be agreed upon.  The final set of KPI's that will be collected and added to the charter afterwards are the actuals.  The actuals will help establish measurements for tracking and continued improvement.   
  Like a contract would do we also outline the project scope.  A simple way to understand the project scope is to think of your scope as boundaries for the project.  They help the team understand what is acceptable and what is not.  This is very important so that the Organization get's the results they want and the team is empowered enough to be able to get results. 
  There are two more critical aspects of a project charter that should be defined.  The first is your team structure.  This one is pretty self explanatory just be sure to outline each member of the team all the way up to the sponsor.  The last piece of our project charter puzzle is the schedule or inch, foot or mile stones.  These are critical parts of your project that show your start date, estimated completion and the total number of days for each one.  Remember the charter is an informal contract between the organization and the team so whatever schedule you put on their is what the team will go by.  
  

  With the Olympics ending just a short time ago there has been a lot of talk about Michael Phelps and his absolutely stunning performance at the Olympics.  What a great swimmer Mr. Phelps is.  One of the toughest challenges of being amongst the elite in sports like track, swimming and many other racing sports is just staying in your lane.  But those lanes are put there to help guide athletes and allow them to perform at their very best.
  

  As you can tell on the left hand side are the departments or process owners of the steps in their swimlanes.  We then see from left to right each of the process steps laid out in the appropriate order.  There are a few differences between a "process map" and a value stream map that you will want to be sure to include but in general you will follow a SIPOC format showing suppliers, inputs, process steps, outputs and customers.

Differences in process map and VSM

  1.  The first key difference that you will see is in the connecting lines.  These lines are meant to show the information flow that you would capture in a vsm.  In our example a simple textbox is added to the connectors in order to identify the information that travels along the connector.

  2.  Next we notice that the shapes are not the typical format of a process map.  The main reason for this is because we want to include the appropriate metrics for our project.  Metrics can be time based, money based or anything else that might align with the objective you are trying to achieve.  Along with metrics we need to show inputs of the process and outputs of the process, those can be identified in a traditional manner breaking your sipoc into columns or showing the inputs and outputs of each process step like our example shows above.

  3.  It is necessary for us to identify va, nva and bva when constructing a value stream map.  There are multiple ways of doing this, but our example shows red, green and orange dots to signify va, nva and bva.  

  Adding these three elements will help you collect metrics that you need to focus on and tell us what is va, nva and bva while still connecting the information flow of the value stream.

What to look for?

  In process mapping we look for many different things such as rework loops, crossover in lanes and points that may not be needed.  When we look at a value stream map using metrics and swimlanes we look for similar elements such as crossover, repetition, large gaps in metrics or excessive issues, non value and business value and any steps that may be stacked could identify a trouble area in the process.  One other thing that we commonly look for is inputs that produce no output.  There can on occasion be circumstances where this may happen but generally if something is going into a step something should come out too or it may fall into the category of wasteful activities.  

Steps to build

  1.  Identify the starting point and stopping point of the your map.
  2. Identify process owners, departments or individuals.
 3. Establish appropriate metrics that are aligned with objectives.  Examples might be if you want to reduce time collecting time based metrics.
  4. Begin mapping the value stream including inputs and outputs.  *Note - Suppliers and customers are identified by looking upstream or downstream.
  5. Connect value stream steps with information flow.
  6. Identify va, nva and bva.
  7. Analyze looking for improvement opportunities
  8. Create future state.

    Though this type of SIPOC format may seem a bit foreign it actually is quite effective in mapping processes that are cross functional such as an order to cash request or any other process that maps the activities of multiple departments.  Though the map itself may not win you gold medals in the Olympics it will certainly identify who's swimming in what lane and where resistance may be occurring.   

  Ever since the dawn of time man seeks to make woman happy and keep cave in 5S condition.  Bows nice and tidy, dirt floor swept and sanitary with a place in the tunnel to scratch each internal audit.  The benefits are almost immediate and the system seems to have a way of energizing the other "tribes."  But even with success that dates back to prehistoric times why is it that 5S seems to have become the "beginners" project?
  Truth is, there is an art to 5S that often goes unnoticed.  Maybe it's the assumption of spring cleaning, possibly the intense effort it sometimes takes or maybe it's just how simple the system is but behind all the smoke and mirrors 5S brings together a set of proven techniques that when combined dramatically transform anything they are applied to.  
  
Sorting
  Let's take for example sorting.  Separate what is needed from what is not needed. right?  Wrong!  It's actually more like separate what is needed from what is not needed taking into consideration critical needs and establishing a priority system based on the items frequency of use all while gently guiding the oh so needed torn apart and rusting to pieces tool box into the garbage bin.  If you weren't skilled before the project started you will certainly discover your strengths and learn to acknowledge your weaknesses in the sorting phase.
  
Set-in-Order
  Now the junk is gone and there are a few piles of important items laying in groups according to how often they will be used.  Fantastic!  But alas it's only the beginning.  Now we must set all items back in a designated space and then begin shining.  Wrong again!  Actually we would all love to think that setting things in order only requires a few core activities, but in hindsight setting things in order often times means laying out a "plate of spaghetti" and reviewing the flow of the shop floor.  Then gathering labels and various sensory indicators to create a place for everything.  After you have finished laying out a calculated flow for the newly sorted shop floor and gathering the necessary supplies now it's time to create the flow you laid out and clearly identify a place for everything ensuring that everything gets put in its place.  Tools like shadow boards are assembled, wheels, axes and spears (see picture above) are placed in easy to reach positions and everything is placed in a carefully planned out order.  The mere fact that teams coordinate these activities and make decisions based on consensus provides participants with an opportunity to become a team. One other very interesting fact related to setting items in order is that although it certainly will tidy an area up, the actual purpose of this activity is to remove any forms of waste (muda) from the area.  This is one reason why we look to establish flow and place items in carefully marked boards or areas.  The core principle with all the tape and shadow boards is not in fact to make the "cave" look pretty but rather to enhance the degree by which an abnormality can be identified.  Here is an example,  if I were to trace wrenches with a black sharpie I certainly would know where the item goes and upon further need for an item would be able to discover the abnormal condition if the tool was not their.  Now if I were to cut a hole in foam in the shape of the wrench and line the bottom of that cut out with "cavewoman's"   favorite color let's say bright pink, we may not even have to look to notice the tool missing.  Aside from identifying abnormalities setting things in order reduce wait time (looking around), transportation (going and getting what you need), and many other forms of muda.  While these experiences may sound familiar to those of you who have performed a 5S before, the system often get's set aside after our next step, shining.
​  

game.  The purpose of shining is actually much deeper rooted than just seeing your face in every item around the office or shop.  The actual intention of shining is a few different things:

1.  Ensure the work area is safe and sanitary.
2. Establish cleaning as a form of "inspection" and support of TPM.
3. Jumpstart the initial mindset of daily maintenance and improvement.
​
 
Standardizing
  After the shining is complete we then move on to in my own personal opinion the bread and butter of 5S, standardizing.  This is often mistaken or confused with the activities that took place in the set-in-order portion of 5S.   When we standardize activities we link sustainment with the first 3S's.  Think of it like you are closing the loop.  Whatever is done in this stage will determine the degree of sustainment you and your team obtain.   However the policies and procedures must be systematic in nature.  They must be checked maintained and kept alive in order for them to work.  One very common practice is to assign a "5S manager."  This is not a bad practice in the early stages of 5S development, but the goal should be to have "everyone" be "5S managers."  

Sustain
  Sustaining 5S is commonly noted as the hardest part of a 5S initiative.  But really when you think about keeping a room in tip top condition it sounds easy.  Maintaining 5S has more to do with what we do everyday that maintains the new condition.  Because this often involves other people and culture or behavioral changes, 5S oftentimes fails to meet the condition we left the gemba in after shining.  I recently experimented with a new concept at a local machine shop where we assigned accountability partners within the department structure.  Using the same principles as any other accountability partners each person had a silent best friend who held one another accountable for their areas condition.  The idea was to create an environment where every individual did their part ultimately resulting in everyone doing their part.  The concept caught on rather quickly and turned out to be a big success.  In order to avoid partners "keeping secrets"  the teams still met each morning in huddle and reflected at the end of the day in hansei.  

  There can be no denying that a positive 5S experience often sends participants catapulting into a Lean mindset.  The system provides benefits for the organization and upon completion excites team members.  That momentum if used correctly often grabs many non-believers and turbo charges their  lean conversion providing tangible results for everyone to see and feel.   No matter what level of "lean" or skill set we are performing 5S can really hone, remind or strengthen individuals.  If you train 100% of your employees in the 5S system and require each one to perform an initiative of their own, guaranteed you will see a return on the investment.  In closing let's not discount the 5S system its benefits are quite powerful and often the results compound with each go around of 5S.

  One of the first quality tools that I learned how to use was the control chart.  At the time my job function consisted mostly of receiving a blueprint and designing the process which would ultimately make what was on the blueprint, while at the same time working up an RFP or and RFQ.  Being heavily involved in six sigma at the time I frequently went to the gemba and looked at reports from previous production runs and spoke with the employees who ran the machines.  One day while speaking with an employee he mentioned that there was a lot of sanding that needed to be done, but that other times yielded no sanding at all.  Upon further review I learned that this sanding had been built into the process in order to solve the over-sized parts.  Knowing that this was a form of over-processing I decided to collect some data.
  As we gathered the data a control chart was used to monitor the process stability as we produced our outputs or the Y's in our process.  Eventually we discovered that this was in fact not a common cause variation but rather a special cause of variation.  This of course told us that an adjustment needed to be made.
  While the design of the mold is not the topic that we will discuss today, the application of the DMAIC method proved to be beneficial.  I believe that the key turning point in the life cycle of the part was directly related to using that control chart.   
  If you have never used a control chart before the control charts general purpose is to monitor if a process stays within a standard over a defined period of time.  The other important lesson that can be learned from a control chart is whether or not the process is in control or not, hens the name "control chart." The control chart shows us an upper limit and a lower limit and a mean or an average line.  For example if you went bowling and wanted to monitor where the balls were hitting the average would show a cluster of where the ball hit most.  As the name hints control charts show us when a process is no longer in control and an adjustment needs to be made.  The key is to make the adjustment in relation to the "root cause" and not the issue that is first seen.
  In my circumstance I wanted to see the readings and get started on a solution right away which is why the control chart worked so well for me.  Most control charts need somewhere between 12 to 25 readings in order to estimate our limits.  While every circumstance is different the control chart can often be used to analyze patterns of a process, control a process that is ongoing and to determine whether or not the process should focus on the problem or change the process entirely.

  Here are a few basic steps to follow when using a control chart:

1. First define what it is you are trying to solve.
2. Select a control chart.
3. Measure or gather data that will be used for analyzing (If possible place data into control chart in real time).
4. Review data looking for patterns, "out of control points" and get to the root cause.
5. Correct the root cause.
6. Continue monitoring to ensure control.

​  To set up your own control chart is reasonably simple.  Simply follow these steps or you can download a template by signing up below:

Step 1 - Collect data.
Step 2 - Insert data into template.
Step 3 - Calculate mean (center line)
Step 4 - Calculate the UCL or upper control limit.
Step 5 - Calculate the lower control limit.
Step 6 - Select data and insert chart.

  In my circumstance of gathering data, the control chart proved to be a valuable tool and helped me to successfully eliminate some inefficiencies in that particular value stream.  The control chart can do the same for you too if the situation is right.  Don't forget to grab your free template below. 

  Value Stream Mapping is one of the Most effective methods and Skills a Lean practitioner can have.  With an effective VSM methodology the tool of mapping can be used to truly transform processes from process level all the way to extended enterprise systems and maps.  Let's look at a few elements that can be applied to mapping and keep your vehicle on course;

1.  Define the Objective

  Like a vision the people mapping need something to align their thoughts with.  Clearly defining the objective with all parties will allow people to ask the all important question "Is what I'm about to do going to move me towards or away from my objective?"  Of course you want to head towards; you can define objectives through a charter, contract or an A3.  The use of these project tracking tools will help to keep the objective insight.

2.  Teardown the process

  Now that you have clearly laid out your objectives and all parties agree on the goals at hand, it's time to Go see and understand what is exactly happening in the Current State.  Remember to include process owners and SME's they will help you understand the as is.  While investigating at the Gemba, it is a good idea to snap photos and take notes.  The Goal here is to really understand what is actually happening not what is supposed to be happening.  In this stage you will also want to begin to make what you are understanding visual.  Making the process visual means getting the good old stickies out and putting them on the wall.  The process owners can help you to map out the steps which will further your understanding of the current state at the gemba.

3.  Apply the right Metrics

  It goes without saying but if you are looking to reduce cycle time you would not want the Mapping participants to to identify cost (cheapest, most expensive).  Now I'm not suggesting you use process mapping for more than just reducing process times, but use process mapping for more than just "time".  After you have listed the steps in the process you will want to list the cycle times below, the best and worst is okay or if you are looking at cost reduction the most expensive and least expensive will work too, be sure you capture the appropriate metrics in the row shown below, it should be in line with your objective. The photo below may help you understand.

3.  Review and Examine

  Now that you have laid out each step in your process and have the appropriate data and or metrics associated with the Objective in place you can begin to review and examine the Current process.  The word "Review" gives us the hint we will scrub again so make sure everyone who was involved still is involved.  When we "scrub again"  we look for anything that might be a bit messy or that we missed so take this opportunity to identify key bottlenecks or constraints that are choking the life out of your process.  Take a microscope to your process and make visual what category each step fits into (VA,NVA,BN/BVA). Of course as you examine each of the symptoms that are brought up you will want to get to the root cause.

4.  Decide what the "best route" is and "drive"

  Well we haven't started our "vacation" yet, but we have clearly defined where we are going (objective) and we figured out our gas and speed (data metrics) and of course we talked about all the things we would enjoy to do (VA,NVA, BN/BVA) and nobody left out all the things that could go wrong (bottlenecks and constraints).  Now it's time to decide what the best route is (solutions) and advance.  In this stage you can finalize your solutions, gain consensus amongst everyone and plan out any implementations that might need more resources or approval from the mountain top.  Anything other solutions that you can do quickly, get er done.  

5. Last but not Least

  In the process of driving towards your objective you will want to figure out "how to sustain or improve" your plan so that the end result of reaching your objective happens as it should. We all know that stuff comes up and need to pivot at times, that time comes as soon as it happens adjust as necessary and share with the entire team any changes that have revealed themselves.  Lastly update any new procedures, standards and policies that may need to be updated.  One last Key element to sustainment is proper training to bring everyone up to speed.  

  Value stream mapping like a vacation can be fun and yield transformative results if the right elements are in place and experienced practitioners are involved.  Now go and reach your objectives, if you get lost along the way give us a holler, we're happy to support.  
  

  When Looking into various systems of replenishment, there is no doubt that the Kanban system is at the top of every list.  Although the ideal system in any Organization is true single piece flow, the Kanban system can help you to adjust buffers, trigger material before it is out and free up hundreds of thousands of dollars in company assets.  We often times don't realize as much as 50% of an organization's assets are usually tied up somewhere in the supply chain, for that reason Kanban has become a go to system to solve many of the problems experienced by supply chain professionals.

  The Kanban can be in the form of a card, bin or even just an empty space that has been clearly labeled and identified.  the simplest way to explain the Kanban system is that when the Kanban is empty it acts as the "trigger" for replenishment.  Grocery stores often times have Kanban systems in place to restock shelves or trigger the re-ordering of necessary supplies.  Originally the Kanban system was a "Best in Class" benchmark that was observed by Taiichi Ohno while traveling in America.  

  Although the Kanban is a very effective way to control activities and production rates there are a few key elements that should be put in place that will help ensure the Kanban system is accepted and Successful.

1. Clearly Label your Kanban

  Be sure that the System is clearly labeled with a part number or Stock Keeping Unit, if you are using a Bin make sure the Bin has been identified and the location for the bin is clearly marked.

2. No Min/Max Quantities

  What?  That's right the Quantity on the Kanban should be Clearly defined;  There should be no minimum or maximum buy or produce ammount, what's on the card is the number.

3. Empty Kanban, replenish

  Be sure that the Kanban is the trigger to replenish and that means the only trigger.  It is important to note that no counting of any form should be required if the Kanban quantity has been properly figured.

4. All Kanbans should Maintain a 5S standard and Integrity

  Keep the Kanban areas in proper 5S shape, you wouldn't want any sort of mixing and matching or confusion in the Kanban system.  Maintaining a 5S standard will help to keep things Visual and Organized.

5. No Purchase Orders, None

  This is an important element to Kanban that is often times overlooked but honestly is very powerful to the system.  The whole purpose of Kanban is to create replenishment that in one way or another frees up resources and provides the activities, actions or product you need when you need it.  The Kanban card should have the same authority as a purchase order and sets the quantity for the supplier to provide.  While your looking at it another element that can help free up more resources is to batch your invoices on the back side.

  Kanban can be a powerful system when properly implemented into an Organization, it works during high months and low months and cuts out a lot of Forecasting errors and Fluctuation in Supply and Demand.  If you are interested in Receiving the Template shown above please feel free to touch base with us by emailing info@leanstrategiesinternational.com, we would also be happy to answer any additional questions you may have in stting up your Kanban system.