MGT655 Grand Canyon Process Improvement Project Presentation For this assignment select either your own organization or an organization about which you know enough to review the supply chain processes and identify a process that can be improved in your sphere of influence.
Phase I: Improvement Opportunity
Write 500-750 words on improvement opportunity in your sphere of influence. Address each of the following sections:
Quality Tool Analysis
Identify your problem statement and complete a root-cause analysis. Identify which quality tools you used to identify and vet the problem. Explain the quantitative and qualitative tools you used and provide a summary of how you arrived at your problem.
Stakeholder Analysis
Complete the interactive “Stakeholder Analysis: Winning Support for Your Projects,” located on the Mind Tools website. In Step 2, select the “Interactive Screen App” hyperlink. Provide a Power/Interest Grid of your completed chart (using either a picture format or a handwritten document). In addition, provide a summary that includes considerations for all stakeholders. These considerations will form your communication plan in Part II.
Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.
You are required to submit this assignment to Turnitin. Please refer to the directions in the Student Success Center.
Phase II: Planning and Implementation
In Phase II of the Process Improvement Project you will be creating a project timeline to help you implement the proposed solution to the problem statement defined in Phase I. As a project leader, you will need to consider several things before you start the project. The project leader must preplan, plan, and kickoff the project.
Planning of the Project
As the project leader, write 500-750 words that address these items:
Identify which methodologies and strategies you will implement to meet your goals. Provide rationale for why you did not select some of the other methodologies and strategies.
Which business functions will be impacted by your action plan? What tactics will you use to manage implementation across business functions? What can you do to enhance collaboration/cross-functionality to ensure the success of your plan?
Timeline: Create a timeline to implement the proposed improvement to the problem and identify the critical path components.
Communication plan: Using your completed quality tools analysis and stakeholder analysis, create a communication plan for disseminating your action plan to all of the stakeholders. Which strategies do you plan to utilize and why? Your plan should demonstrate how you plan to use formal and informal communication channels to implement the plan. In addition, explain how the communication plan addresses what you are hoping to achieve with your goal.
Project Kickoff and Implementation of the Project
Successfully improving the value chain requires the willingness of required stakeholders to participate. Imagine you are presenting your project plan in a meeting to all the essential stakeholders for approval. Effective oral communication is essential in the business setting so you will need to present your project plan logically and comprehensively to the stakeholders.
Create a PowerPoint presentation (7-10 slides) specifying the problem statement, stakeholders, proposed solution, timeline, and communication plan to implement the project. MAKE SURE TO ADD SPEAKER NOTES TO GET FULL CREDIT. Be sure to address the “why” and “how” in your narrative.
Phase III: Evaluation
In the final step for your plan, state in 250-300 words the metrics you will use to determine project implementation success. Please justify why you have selected those metrics. Include specific metrics that will be used to evaluate the success of the implementation. How long will the project team monitor project implementation?
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.
You are required to submit this assignment to Turnitin. Please refer to the directions in the Student Success Center.
General Project Requirements
While APA format is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion. Course Code
MGT-655
Class Code
MGT-655-XC0125M1
Criteria
Content
Percentage
70.0%
Quality Tool Analysis
40.0%
Stakeholder Analysis
30.0%
Organization and Effectiveness
20.0%
Thesis Development and Purpose
7.0%
Argument Logic and Construction
8.0%
Mechanics of Writing (includes spelling,
punctuation, grammar, language use)
5.0%
Documentation
10.0%
Documentation of Sources (citations, footnotes,
references, bibliography, etc., as appropriate to
assignment and style)
10.0%
Total Weightage
100%
Assignment Title
Benchmark – Process Improvement Project: Phase I
Unsatisfactory (0.00%)
A quality tool analysis that includes a problem statement,
root-cause analysis, and explanation of which quality tools
you used to identify and vet the problem is absent,
inappropriate, or irrelevant. An explanation of quantitative
and qualitative tools you used and a summary of how you
arrived at the problem is absent, inappropriate, or irrelevant.
A stakeholder analysis that includes a power interest grid and
a summary of all considerations for all stakeholders is absent,
inappropriate, or irrelevant.
Paper lacks any discernible overall purpose or organizing
claim.
Statement of purpose is not justified by the conclusion. The
conclusion does not support the claim made. Argument is
incoherent and uses noncredible sources.
Surface errors are pervasive enough that they impede
communication of meaning. Inappropriate word choice or
sentence construction is used.
Sources are not documented.
Total Points
100.0
Less than Satisfactory (74.00%)
A quality tool analysis that includes a problem statement,
root-cause analysis, and explanation of which quality tools
you used to identify and vet the problem makes weak
connections with several gaps in presentation. An explanation
of quantitative and qualitative tools you used and a summary
of how you arrived at the problem makes weak connections
A stakeholder analysis that includes a power interest grid and
a summary of all considerations for all stakeholders makes
weak connections with several gaps in presentation.
Supporting sources are present and that show limited
understanding of the content.
Thesis is insufficiently developed or vague. Purpose is not
clear.
Sufficient justification of claims is lacking. Argument lacks
consistent unity. There are obvious flaws in the logic. Some
sources have questionable credibility.
Frequent and repetitive mechanical errors distract the
reader. Inconsistencies in language choice (register) or word
choice are present. Sentence structure is correct but not
varied.
Documentation of sources is inconsistent or incorrect, as
appropriate to assignment and style, with numerous
formatting errors.
Satisfactory (79.00%)
A quality tool analysis that includes a problem statement,
root-cause analysis, and explanation of which quality tools
you used to identify and vet the problem makes connections
at a cursory level and contains minimal gaps. An explanation
of quantitative and qualitative tools you used and a summary
of how you arrived at the problem is at a cursory level and
A stakeholder analysis that includes a power interest grid and
a summary of all considerations for all stakeholders makes
connections at a cursory level and contains minimal gaps.
Supporting sources are present and show some
understanding of the content.
Thesis is apparent and appropriate to purpose.
Argument is orderly, but may have a few inconsistencies. The
argument presents minimal justification of claims. Argument
logically, but not thoroughly, supports the purpose. Sources
used are credible. Introduction and conclusion bracket the
thesis.
Some mechanical errors or typos are present, but they are
not overly distracting to the reader. Correct and varied
sentence structure and audience-appropriate language are
employed.
Sources are documented, as appropriate to assignment and
style, although some formatting errors may be present.
Good (87.00%)
A quality tool analysis that includes a problem statement,
root-cause analysis, and explanation of which quality tools
you used to identify and vet the problem is clear and
integrated, and makes meaningful connections with no gaps.
An explanation of quantitative and qualitative tools you used
and a summary of how you arrived at the problem is clear
A stakeholder analysis that includes a power interest grid and
a summary that of all considerations for all stakeholders is
clear and integrated, and makes meaningful connections with
no gaps. Supporting sources are present that illustrate the
understanding of the content.
Thesis is clear and forecasts the development of the paper.
Thesis is descriptive and reflective of the arguments and
appropriate to the purpose.
Argument shows logical progressions. Techniques of
argumentation are evident. There is a smooth progression of
claims from introduction to conclusion. Most sources are
authoritative.
Prose is largely free of mechanical errors, although a few may
be present. The writer uses a variety of effective sentence
structures and figures of speech.
Sources are documented, as appropriate to assignment and
style, and format is mostly correct.
Excellent (100.00%)
Comments
A quality tool analysis that includes a problem statement,
root-cause analysis, and explanation of which quality tools
you used to identify and vet the problem is thorough and well
integrated and makes meaningful connections with no gaps.
An explanation of quantitative and qualitative tools you used
and a summary of how you arrived at the problem is
A stakeholder analysis that includes a power interest grid and
a summary of all considerations for all stakeholders is
thorough and well integrated, and makes meaningful
connections with no gaps. Supporting sources are present
that illustrate a deep understanding of the content.
Thesis is comprehensive and contains the essence of the
paper. Thesis statement makes the purpose of the paper
clear.
Clear and convincing argument that presents a persuasive
claim in a distinctive and compelling manner. All sources are
authoritative.
Writer is clearly in command of standard, written, academic
English.
Sources are completely and correctly documented, as
appropriate to assignment and style, and format is free of
error.
Points Earned
MGT655
Week 7
Topic 7 and 8 Objectives
■ . Evaluate how to use tools of many types to effectively analyze and improve
manufacturing processes.
■
Describe how project management can be used to effectively implement supply
chain strategies.
■
Identify the key elements of project management including a timeline and a critical
path.
■
Evaluate an organization’s operations in order to improve the value chain.
Topic 7
■ Process Improvement
■ Lean
■ Formulating a Problem Statement
■ Stakeholder Analysis
PI Philosophy
■
Improve Profitability
■
Be Customer Focused
■
Measure Outcomes
■
Focus on Prevention
■
Reduce Variation
Background to Process Improvement (PI)
– A highly disciplined process that helps us focus on
developing and delivering near-perfect products and
services
– The central idea behind PI is measuring how many
‘defects’ exist in a process/service/product. Then
systematically reducing or eliminating them to as close
to ‘zero defects’ as possible.
– Common tools are:
■ PDCA – Plan, Do, Check, Act.
■ TQM – Total Quality Management.
■ DMAIC – Define, Measure, Analyze, Improve, Control.
– Focused on prevention rather than detection.
PI Philosophy – Focus on Prevention
Prevention costs less than detection
– Detection is finding and fixing errors, problems, and
mistakes
– Prevention is preventing them from happening in the first
place
COQ : Cost of Quality
– Prevention costs, Appraisal costs, Internal failures, External
failures
The $1 : $10 : $100 Rule
– $1 spent on prevention saves $10 of internal failures and
$100 of external failures
Benefits of PI
– Greater customer
–
–
–
–
satisfaction
Reduction in the cost of
poor quality
Improved competitiveness
Increased productivity and
top-line growth
Establishes a rigorous
approach for problem
solving.
Benefits to Customers
– A pro-active approach which listens to client requirements, and
then translates them into Critical to Quality measurements.
– Customer focused – taking key requirements and implementing
processes which deliver
– Increased quality of goods and services provided
– Ability to “Get it Right the First Time” and if there are problems
to “Fix the Problem, and only once”
Simple PI Tools
–
–
–
–
–
–
–
–
–
–
–
–
Control Charts
Mistake Proofing,
Failure Modes and Effectivity Analysis (FMEA),
Statistical Process Control (SPC)
Root Cause Analysis
Quality Functional Deployment (QFD) (also
called “House of Quality”)
Process Mapping/Value Stream Mapping
Performance Metrics
Trend Analysis
Variation Measurement
Process Capability Analysis
Lean Thinking
Advanced PI Tools
–
–
–
–
–
–
–
–
–
Advanced SPC, Control Charts
Design of Experiments (DOE)
Analysis of Variation (ANOVA)
Test of Significance (Hypothesis Testing) — z
Test, t Test, Student t Test, Paired t Test, and F
test
Chi Square
Correlation, Linear, Multiple, and Logical
Regression
Measurement Systems Analysis (MSA)
Nonparametrics,
Power, and Sample Size
PI Philosophy – Be Customer Focused
Listen to what customers say
– Hear what is being said “between the
lines”
Does CTQ = CTC?
– Make sure your CTQ (Critical to Quality)
requirements match up to your CTC
(Critical to Customer) elements
– Be fast, flexible, and responsive
– Measure your performance through
the eyes of your customers
PI Philosophy – Measure Outcomes
If we don’t measure “it” we don’t improve “it”
– Measuring focuses the organization
What we measure is what we get
– If we measure the wrong things, the wrong things get better
– Make sure your measures don’t send mixed messages
– Measure your performance through the eyes of your
customers
Track improvement trends over time
Why 99% may NOT be Good Enough!!
7.2 Hours per
month downtime
2 unsafe landing per
day at Heathrow
5,000 incorrect
surgical
operations per
week
John Doe,
111 Any Address
200,000 incorrect
prescriptions per year
20,000 lost
articles of mail
per hour
1 hour of unsafe water
each month
PI Deployment
■ Overall deployment plan
■ Choosing projects
■ Choose team members
■ Replicate Solutions
■ Update Standards
■ Common databases
Define Phase – Example : VOC Translation
Define Phase
EXAMPLE: Translate Table
VOC Translation
Voice of
Customer
Issue
CTQ
Goal
“The process
takes too long”
Time
Timely,
consistent
process
The process must
complete within 30
days on 99% of
occasions
“I wait ages to
get through to
the Help Desk”
Time
Fast,
consistent
access to the
Help Desk
95% of calls must
be answered within
5 seconds
“I don’t know
who to contact
to find out
progress”
Complexity
Clear contact
information
for assessing
progress
The process must
have clearly
established contact
points for
establishing
progress
Problem Statement/Project Charter Example
Project Statement
Problem Statement
Lower than expected billability, also described as
Excessive Bench Capacity, results in chargeability
variances and negatively impacts services margins by
approximately $100,000,000 per year.
Project Scope
In Scope:
Includes Teams A, B and C within Region X only.
Out of Scope:
All other Teams in all other Regions.
Project Deliverables/Benefits
Project Goal
Improve billability from current 60% to 70% while
maintaining planned fee adjustment. Corrective action
plan will be prepared by June 2005, implemented by July
2005. Benefits will be evaluated 6 and 12 months
following implementation.
Key Deliverables
Six Sigma project documentation, project plan and
validated cost savings to meet project targets
Financial and Operational Benefits
Hard: Potential financial benefit of $1,000,000 per
annum through increased chargeability.
Soft: Increased employee and customer satisfaction
Roles & Responsibilities
Champion:
Process Owner:
Project BB/GB:
John Doe
Fred Blogs
Jane Smith
Core team members:
Steven Adams
Billy Brown
Ad hoc team members:
Jenny Black
Creating a Problem Statement
Original problem or
focusing question
Restate the initial problem that launched this inquiry process, or
rewrite the focusing question or one of the clarifying question as a
statement.
Stakeholders who are most
affected by the problem
Who is most directly impacted by this problem? Alternately, who
would benefit the most if this problem were resolved?
Type of problem
For example, skills, attitudes, knowledge, resources, competition,
defects or something else.
Suspected cause of the
problem
Based on the data analysis and/or the root cause analysis, what
does the Team think is the most significant cause(s) contributing
to this problem? What, if addressed, would make the greatest
impact on resolving the problem? (Include specific evidence).
Goal for improvement and
long-term impact
Describe the target for impact. This should be measurable.
Proposal for addressing the
problem
High-level strategy that represents promising practices drawn
from research, local knowledge, and local expertise. (Note
sources if possible). This will become the basis for subsequent
action planning.
Final problem statement
Tie the above statements into 3–5 coherent sentences that could
be easily understood by a wide range of stakeholders.
Sample Brainstorm on Problem
Statement
Original problem or
focusing question
Call Center representatives are not meeting quality standards
Stakeholders who are most
affected by the problem
External customers and call center representatives.
Skills and Resources: Without the appropriate skills training
and tools to perform the job, the call center representatives
are not set up to succeed in their positions.
Call Center Representatives do not get adequate training
There are insufficient online resources for representatives to
refer to in production
There are insufficient management resources for coaching and
mentoring
We want the Call Center to achieve a 99.8% Quality rating
with no more than 2% of the staff on quality action plans.
Loss of Customers and revenue
Lower performance evaluations for representatives
Higher call center attrition
Potential missed Service Level Agreements (Fines)
Many Call Center representatives are not achieving quality
standards; thereby contributing to the overall low quality for
the Call Center of 92%. Based upon data and process
evaluation, it was identified that the training time for XYZ Call
Center 30% less time than other call centers which may
contribute to lack of skills training. In addition, the online tools
available to the call center staff are not updated frequently
with procedural changes and do not contain all required
information for representatives to perform their job. The low
quality over the past 6 months has resulted in a decrease of
customers by 2% and lost revenue by $550,000 annually.
Decreased employee satisfaction in the call center due to the
issue has identified an increase in voluntary attrition by 5%,
which costs the business $80,000 annually. There is an
opportunity to improve quality to reduce both customer and
employee attrition by addressing the skills training and
resource issue in the call center.
Type of problem
Suspected cause of the
problem
Goal for improvement and
long-term impact
Impact to Stakeholders
Final problem statement
Why is Lean important to you?
Lean labels each step as one of the
following.
■ Value-added: A step the customer is
willing to pay for.
■ Value-enabling: Regulatory or other
required activities that may not provide
value, but must be done. These should be
reduced/combined if possible.
■ Non-value added. This is waste.
■ Lean eliminates non-value added steps
and reduces the Enemies of Lean
Enemies of Lean
A. Interruptions
B. Poor/Incomplete Definition
C. Non-value added steps
D. Rework
E. Redundant/Excessive Data
Requirements
F.
Non-value added requirements
G. Lack of/Misplaced Accountability
H. Lack of Knowledge (need training)
I.
Lack of Communication/Reporting
J.
Non-value added approvals
K. Manual effort
L.
Inconsistent Enterprise Practices
M. Excessive Process time/Cycle time
N. Loops
O. Lack of Prioritization of work
P. Resource Allocation Ambiguities
R.
S.
T.
U.
V.
W.
Series steps
Bottlenecks
Pushes (insert pulls)
Excessive complexity
Set-up time
Non-Availability (Client, Information,
Hardware, Vendor, Mgmt)
X. Product/Process Constraints
Y. Sequence Issue
Z. Lack of Trust
AA. Resistance to Change
BB. Lack of Buy-in
CC. Disengaged
DD. Inappropriate measurement
Lean chooses fewer projects aligned
with the Strategic Initiatives and that
provide the greatest value
Traditional
quality
costs —
4% to 5%
of sales
Hidden
quality
costs
difficult to
measure —
around
15% to 25%
Strategic Initiatives:
Rejects
Rework
Testing
Inspection Costs
Scrap
Pricing and
Billing Errors
Long Cycle
Times
Warranty
Morale, Productivity,
Turnover
Excessive
Overtime
Time with
Dissatisfied
Customers
Expediting
Parts
Revenue
Leakage
Customer
Allowances
Lost Sales
Lost
Opportunity
Lost Customer
Loyalty
Excess
Inventory
Late Delivery
Late Product Introduction
Eng. Change Orders
Overdue
Receivables
1. Reduce time to receive
parts from vendors.
2. Reduce the cost of
bidding.
The Power of Lean!
Step
Process Yield
1
2
3
4
5
6
7
8
9
10
Yield
0.75
0.8
0.85
0.9
0.95
0.99
0.75
0.8
0.85
0.9
0.95
0.99
0.75
0.8
0.85
0.9
0.95
0.99
0.75
0.8
0.85
0.9
0.95
0.99
0.75
0.8
0.85
0.9
0.95
0.99
0.75
0.8
0.85
0.9
0.95
0.99
0.75
0.8
0.85
0.9
0.95
0.99
0.75
0.8
0.85
0.9
0.95
0.99
0.75
0.8
0.85
0.9
0.95
0.99
0.75
0.8
0.85
0.9
0.95
0.99
5.63% 10.74% 19.69% 34.87% 59.87% 90.44%
Step
1
2
3
4
5
Yield
Process Yield
0.75
0.8
0.85
0.9
0.95
0.99
0.75
0.8
0.85
0.9
0.95
0.99
0.75
0.8
0.85
0.9
0.95
0.99
0.75
0.8
0.85
0.9
0.95
0.99
0.75
0.8
0.85
0.9
0.95
0.99
23.73% 32.77% 44.37% 59.05% 77.38% 95.10%
Note that each step in the first column of
the 10 and 5 step processes is 75%
effective, yet the 5 step process is 4
times more effective and we haven’t
improved anything yet – that’s the power
of Lean.
Apply Lean first, then Process Improvement.
Impact
How They
All Fit
Together
Strategic Initiative Lean
Lean/PI
PM
PI
PM
Just Do It
PM
No
Complexity
Lean/
PI
PI
Lean
Apply Lean/PI when
designing processes
Differences between Lean and PI
Lean
Process Improvement
Create flow and eliminate waste
Improve process capability and eliminate
variation
Simple processes; you already know the
problem
Processes where you don’t know the
problem or associated solution
Teaching principles and “cookbook
style” implementation based on best
practice
Teaching a generic problem-solving
approach relying on statistics
Project Selection
Driven by Value Stream Map
Should be aligned with Strategic Goals
and
Length of Projects
1 week to 2 months
2 to 6 months
Less training required, but needs
support from Exec Sponsors
PI trained resources/teams, Exec
Sponsor, project defence
Lean Event, 5S’s, Value Stream
Mapping, reducing non-value tasks
DMAIC or DMADV with 5 to 10 tools per
phase.
Learning by OJT w/Lean Trainers
Formal Training & Certification, practice,
practice, practice
Goal
Application
Approach
Infrastructure
Tools Used
Training
ALWAYS apply Lean to remove waste, then apply PI to
the remaining steps.
DMAIC/Lean Problem-Solving Model
Six Sigma
projects
Define
Measure
Analyze
Improve
Control
•Define
customers and
their CTQs
•Establish
baseline
performance for
the current
process and
develop
measures that
will enable
process
improvement
•Examine the
data and
process…
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