Six Sigma Continuous Improvement Training Introduction to Benchmarking Six Sigma Simplicity.

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Flowserve Corporations Continuous Improvement Process

Six SigmaContinuous Improvement Training Introduction to Benchmarking

Six Sigma SimplicityContinuous Improvement - Benchmarking1Notes.Key Learning Points Steal Shamelessly Use the Experience of Others Plan to improveContinuous Improvement - Benchmarking2Notes.What is it:A comparative analysis technique intended to help performance improvement initiatives to set reasonable targets and to obtain vital process design information

When to use it:When the need to change or the degree of change is in debate and the process owner and/or other individuals need quantitative evidence that improvement is necessary and realistic

Benefits:Helps a learning organization gain insight into leading practices and competitor capabilitiesBenchmarkingDefinitionBenchmarking:A process of making improvements supported by structured data collection which involves third partiesContinuous Improvement - Benchmarking4Third parties depending on scope benchmarking may need to includecustomerssuppliersequipment manufacturersother Departments/Bus/Divisions/competitorsother business sectors

Notes.When to use BenchmarkingWhen the team is working on processes so weak that they appear not to existWhen your team is attempting something they have never done beforeWhen the team is considering applying a technology or strategy from competition or another business sectorWhen you need fresh ideas

Continuous Improvement - Benchmarking5Notes.Results of BenchmarkingRefine Existing Processpursue process improvementEmulatemodel a best practice match the bestLeap Frogcombine best of the best exceed the bestChange the Rulesborrow from another industry aggressive competitionContinuous Improvement - Benchmarking6When refining an existing process you will need SIPOC and a process map/brown paper. Exchanging Brown papers or making them together will improve the buy in and detailed understanding of the teamsNotes. Decide what to benchmark and why Define the data requirements Qualify the targets (set baseline) Select partners Make arrangements to collect data and possibly visit the target locationBenchmarking Develop interview guide Obtain the data Validate the data Do comparison analysis Check for sensibility Prepare report and gap analysis Implement a plan of actionBenchmarkingRoles: Who does the process and what tasks are performed?

Statistical: What results does the process produce?

Process: How is the process designed and operated?

4 types of benchmarks:Internal: peer group Business Units or DivisionsExternal: industry peer group competitorsExternal: world class industryBest-in-class (BIC) processesBenchmarking Five Stages Reactions to BenchmarkingBargainingDenialDepressionAngerAcceptance!Step 1: Preventative actions (future)Documented feedback for lessons learnedUpdate system

Step 2: Preventative actions (existing) Examine current system and process. If none, perform root cause analysis Inform/ initiate the relevant operational team for the potential corrective actions and follow upAfter BenchmarkingPrevent RecurrencePlan for success: Step by StepDefine ScopeForm TeamSet BaselineSelect PartnersFirst agree what result you are trying to achieve:Refine Existing ProcessEmulateLeap FrogChange the Rules

Continuous Improvement - Benchmarking12REALITY CHECKSCheck the charter! Are the champion /BB/GB powerful and skillful; enough to have a good chance of managing change in the time available

Check the charter and process map ! Will refining the existing process achieve the required result?

Notes.What questions to ask5. Develop Interview guide

Quantitative questions.e.g To compare the lead times of 4 locations what do you ask for?average + standard deviation of lead-timecapability to achieve a targetrun chart + identification of special causesupper quartile lead timehow many readings do you need? should the samples be the same size?

Qualitative questionsto ease analysis use a scale such as 1- I agree strongly 5 - I disagree strongly

Pilotto check for understanding and consistency of answer

Continuous Improvement - Benchmarking13Review Data collection Measurement Systems AnalysisUnderstanding VariationCapabilityGreenbelt statistics

Recommend review with BB.Notes.GAP analysis6. A tool - Collect/ Interpret data

Continuous Improvement - Benchmarking14Low and High scores are calculated for each measure from the responsesThe GAPs will focus you on the quality of improvements possible, combine with acceptability of improvements to drive effective change

Also once you have achieved best practice within the scope of the benchmarking you should enlarge your scope so that the search for best practice is extendedSee how you can manage the each GAP as a QMAIC project with its own charter(s)Notes.Solution - Effect7. Develop Action Plan

1) ProposedSolution2) Anticipated effects of solutionContinuous Improvement - Benchmarking15Notes. 8. Implement Plan9. InstitutionalizeHere you apply the CI tools that are appropriate to your projects scopei.e. charter and schedule improvements as Kaizens /Projects and monitor the metrics with your steering committee.Implement and DocumentContinuous Improvement - Benchmarking16Notes.Benchmarking and leading changeIdentifies burning platform for change

Can identify quick wins

Affirms success and acknowledges that we need to involve others to improve

Shares need to compete using data & demonstration

Continuous Improvement - Benchmarking17ConsIf decide and announce is used then there is a danger of lack of involvement of people who will work the process so who will accept project handover?The outside is unknown some people fear change challenging the authority of local leaders/experts to know best can demotivatelook for signs of conflict from those who are at the bottomlook for signs of complacency from those who are at the top

Apply Leading change process and tools to overcome.

Notes.Benchmarking and leading change

Shares vision of what needs to change by how much

Mobilises commitment by involving people. Team and process owner immersed in many levels of communication

Measurement drives behaviour

Continuous Improvement - Benchmarking18Notes.Overview of Benchmarking ProcessDefine ScopeForm TeamSet BaselineSelect PartnersDevelop Interview guideCollect/Interpret dataDevelop Action PlanImplement PlanInstitutionalize

Continuous Improvement - Benchmarking19It is not Industrial Tourism!Visit other locationsHave a lookPerhaps make a decision

Notes.

Congratulate the team!Six SigmaContinuous Improvement Training Introduction to Benchmarking

Continuous Improvement - Benchmarking21Notes.Sheet1LowHigh12345ProductivityxoInventory turnsxoNumber of suppliersxoWarranteexoDSOxoLost Payment due to documentationxoStaff turnoverxoRetestsxoCasting rejectionsxoour scorexBest practiceo

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