Lean Six Sigma

Session 5
Chapter 5

The Define Phase

S. No Reference No Particulars

1 Chapter 1 Introduction to Lean Six Sigma

2 Chapter 2 Implementing Six Sigma
3 Chapter 3 Basic Statistical Concepts for Six Sigma
4 Chapter 4 Six Sigma Tools and Techniques
5 Chapter 5 The Define Phase
6 Chapter 6 The Measure Phase
7 Chapter 7 Analyse Phase
8 Chapter 8 The Improve/Design Phase
9 Chapter 9 Control/Verify Phase
Introduction
➢ The Define phase is the stage where a project team begins to gain an understanding of
the Six Sigma methodology.
➢ The fundamentals which form the basis of this phase are:
✓ project activity definition
✓ decisions on the primary strategy to be adopted for problem-solving and
✓ assignment of roles and responsibilities.
➢ The Define phase is set off with the preparation of the project charter which is an official
document and outlines the details of the process improvement project.
➢ Even though it is created in the beginning of the Define phase, it can be periodically
reviewed, refined and revised throughout the project whenever required.
➢ The elements of a Project Charter can vary from project to project, but they generally
revolve around business case, goal statement, problem statement, scope, team members
and timelines.
Project Charters
Title of the project: The Project Charter serves as a source of reference for managers in future. Hence, it is
important to give the project such a title that is descriptive of its basic intent. This will help the
concerned people quickly reference a project by searching it based on keywords and phrases. For example,
if the claim files management is targeted to be improved in a project, the project may be titled as claim file
cycle time or claim file variation reduction.
Project Black Belt/Green Belt: Black Belt and the Green Belt individuals lead a project. Early
identification of project leaders (Black belt and Green belt holders) is important because the
organization's management needs to be familiar with the project leader. The management must know
whom to call when any additional information is required.
Mentor/Master Black Belt: A Master Black Belt functions as an adviser who can be approached for
problem resolution as and when required during the entire course of the project. It is important that this
resource be identified as a helping hand in the early stages of the project itself.
Expected project start date: Setting project timelines helps the project team steer the resources at its
command in the right direction. The project start date is essentially the date on which project activities are
officially launched.
Expected project end date: Generally, the mentor (Master Black Belt) or the project leader advises on the
expected date of project completion depending on the project’s complexity. It is anticipated that the project
leader and the team shall be given adequate time to be able to complete the project within the given
business circumstances, work requirement, holidays and leave schedules, etc. In many projects, a set of
general guidelines is established regarding how long the project should take.
Project Charters
Identification of process issues: Once the importance of a process to the business is established, its
fragmentation can be discussed. In hospital for example, suppose there is no online
communication between departments like pharmacy, pantry, etc. from where clearance is required
before the discharge of a patient. As a result, patients do not get their discharge bills instantly
which leads to frustration. Also, manual processes lead to errors.
Process start and end points: Though it may be an ideal situation to cover as many aspects of a
process as possible in the project, it may not be practically feasible to do it. Hence it is important
that the project leadership determines the project start and end points.
Project goals: The goals of the project must be documented in the beginning. The goals are the
expectations from the project. Project leaders may establish objectives such as reduction in the
Turn Around Time (TAT) by 50%, elimination of defects or reduction of defects by 95% etc.
Measures of a process: Measures to determine the effectiveness of the project should also be
defined in the Project Charter. Examples of these measures could be the revenue value (INR) per
item or TAT in days.
Project Charters
Cost of poor quality: Quantifying the cost of quality of the process output may not always be an easy task.
Poor outcomes such as scrap, excess hours spent by employees performing manual and redundant
activities, fines levied for violations of product requirements, etc. – all need to be quantified.
Quantification of waste gives an estimate of savings that can be made after implementation of the Six
Sigma project and also help take decisions as to whether it is a project on which the organisation must
focus.
Business importance of the process: A business is run through a collection of processes. Thus, it is
important to assess the effect of process improvements on the business. For example, if an organisation (a
hospital) intends to improve its patient discharge process, it could identify how its current process
compares with that of the other hospitals and how it is an important aspect of the organisation.
Team Members: Members who shall be holding important roles in the team need to be identified. While
the remaining team can be identified at later stages, three important people who will hold the following
designations must be identified: Project Sponsor, Project Leader, Subject Matter Experts (In case of cross-
functional project teams, all team members may not be aware of each other’s positions and skill sets.
Hence, SMEs should be identified and documented at this stage.)
Project timeframe: After identifying the project start and end dates, it is also important to document
important milestones that are expected to be achieved. These are best identified by project mentors and
MBBs owing to their relevant past experience.
Step One: Identification of project deliverables
Before starting the process of project decomposition, the project team must identify the project
deliverables or milestones. The entire project is broken down into smaller works or tasks called
work packages, and each task is broken down into deliverables.
Step Two: Handle one deliverable at a time
Traditionally, the decomposition exercise during the initial stage of the project is done with the use
of pencil and paper (manually). Experts believe that the traditional method of using pencil and
paper creates the least amount of frustration. Using a separate piece of paper for each deliverable is
the best and least confusing methods. The individual paper offers ample space for making a rough
draft. Each paper should be designated with the deliverable name.
Step Three: Dealing with each deliverable individually
Managers can avoid confusion by dealing individually with every deliverable. The process would
involve selecting the first deliverable and keeping the piece of paper in front. The first question that
is asked at this stage is: “What would be the first step required to achieve the deliverable?” For
example, if you were to throw a lunch party at your home, deliverables would include the
identification of guests, sending invitations to them and serving food to all the guests.
Step Four: Know your stop point
Project activities may go on and on. A project deliverable can consider to be broken down sufficiently when
the expected duration and cost can be accurately determined, and everyone has clarity on what needs to be
done exactly in every step. This process can be repeated for all deliverables till the time all the deliverables
have been decomposed to the extent that one can sufficiently estimate the duration and cost.

Step Five: Duration estimation and work packaging

Once the deliverables are broken down using paper and pen, the paper would appear like a filled-up box.
After this, these boxes need to be organised into work packages that essentially contain action items that
are related in some way and that will be assigned to resources for completion. Estimation of the amount of
time that will be required by every task needs to be carried out before this activity. After this, all tasks can
be grouped together as per the resource requirement. According to Joseph Phillips, author of PMP Project
Management Professional Study Guide, a package should be neither less than work worth eight hours nor
more than work worth eighty hours.

Step Six: Estimate task costs

Lastly, the cost of each task needs to be estimated. Once this is done, the project manager can accurately
estimate the project budget. This step holds its own importance because certain tasks have costs that are
dependent on time while others may have some resource requirements that have attached costs. Once the
task estimation exercise is complete, decomposed deliverables can be arranged in the WBS.
For example, assume that a retail apparel store is being launched. A critical need for this store might be “should accept returns if required”. The best option is
to describe the needs in broad terms. In this way, missing out on important aspects in the next steps can be avoided. If there is a constraint in directly asking
customers about their needs, managers can do brainstorming sessions with the team members who come in direct contact with customers such as sales and
customer service teams.

For example, if the need is “should accept returns if required”, a quality driver may be “no deductions in the refund amount.” This phase of quality driver
determination should not be rushed through because it is important to determine quality drivers as comprehensively as possible. Yet again, the customer
service and sales teams should be roped in if customers can’t be approached. Some special tools such as the Kano analysis and Philip Kotler’s Five product
levels are found to be useful.
The ability of a business to deliver quality products is
dependent on many variables such as the availability of
enough resources or the required technology. An
individual CTQ tree should be developed for each critical
need. This would yield a comprehensive list of
requirements that can be used to produce a product that
gives customer delight.
Example- Critical to Quality Metrics
➢ In the example of the retail apparel store, after identifying the Voice of Customer (VOC),
one critical need identified may include delightful customer service.
➢ Here, a CTQ tree can be created to prepare a list of measurable performance
requirements.
Example- Critical to Quality Metrics
Benefits of using process mapping tool are listed as follows:
➢ Acquiring process understanding
➢ Identifying scope for process improvement
➢ Displaying all process steps
➢ Enhancing interpersonal communication between team members
➢ Documenting the process steps
➢ Aiding in project planning
➢ Help in problem solving and decision making
➢ Identifying problems and proposing possible solutions
➢ Symbols used in process mapping are easy to remember and follow
➢ Easier to visualise the end-to end-process
There are different types of process maps as follows:
Activity process map: It includes activities that are value-adding and non-value adding.
Detailed process map: This map includes a lot of detailing around process steps.
Document maps: This map documents process inputs and outputs.
High-level process map: It’s a bird’s eye-view of a process that includes elements such as
Supplier, Input, Process, Output, and Customer (SIPOC).
Rendered process map: This map is a representative of the existing state and the future
state of a process indicating the process improvement areas.
Swim lane map: The sub-process responsibilities are separated out in this type of map.
Value-added chain diagram: A simplified representation using unconnected boxes.
Value stream map: It is a process analysis and improvement technique in lean
management.
Note: The international standard
for drawing process maps is the
Unified Modelling Language
(UML).
Step 1: Problem identification
In this step, the process that requires visualization is selected and the name of the process is used as the document title.
Step 2: Process activity brainstorming
In this step, all activities needed for the process are identified. Also, the granularity needed in breaking down the project is
determined. Also, the responsibilities and activity timings are identified.
Step 3: Identify process boundaries
In this step, the process start and end dates are specified.
Step 4: Sequencing of the steps
The general flow of the process may be displayed or the action or decision details may be mentioned depending on the
requirements of the project.
Step 5: Start preparing the process map using basic symbols
In this step, all the elements in the process flow are represented by their respective symbols.
Step 6: Process map finalization
Team members, workers, process owners, supervisors, suppliers, customers, etc. are the stakeholders who should be
approached for a consensus on the final process map. The process map should have all relevant information such as title, date,
etc. for easy future reference.
 Some important tools required for developing Project Schedule
➢ Project and personnel calendars: It is important for managers to understand their organisation’s
shifts, working days, availability of resource, etc.
➢ Project scope description: This includes start and end dates of the project, major assumptions
made during project planning, any identified constraints or restrictions, etc. Stakeholder
expectations are also important because they help in determining project milestones.
➢ Risks involved in the project: Risk identification is important as it ensures that ample time is
available to deal with risks.
➢ Activity list and resource requirements: Managers should have an understanding of the
capabilities of the available resources and experience level. List of company holidays and
scheduled leaves of staff are also an important component.
➢ Scheduling tools: Some tools and techniques are used for combining the scheduling inputs in
order to develop the project schedule. In schedule network analysis, project activities are
represented in a graphical form. It also depicts the time required to complete these activities
along with the sequence in which they must be done. This depiction is done using tools such as
Critical path, Gantt chart and PERT chart.
Some important tools required for reviewing Project schedule
➢ ‘What if’ analysis: In this technique, all possible scenarios and options of the project are documented,
and a comparison is drawn between all of them. Sometimes managers use simulations to create life-like
situations and observe the effects of their assumptions – whether they are harmful or good. These
could include timely availability of resources, which could impact other project areas. Depending on the
extent of risk, the most suitable option can be selected.
➢ Resource levelling: The sequence of activities is rearranged in certain situations so as to address a
constraint arising from resource unavailability and achieve a resource vs. demand balance at all times.
Timing of activities can be rescheduled to make maximumresource available for critical activities.
➢ Critical chain method (CCM): Activities are planned keeping in mind their latest possible start and
finish dates. This leads to availability of extra time in between activities. This time can be used to manage
exigencies. CCM is adopted under ‘finite’ resources. Under ‘infinite’ resources, it becomes CPM (Critical
Path Method). Also, for each task that feeds into the critical chain, a buffer called as feeding buffer is
created.
➢ Critical path analysis/method (CPM): It is a process of visualizing the activities required to complete
and determine the critical path that needs to be taken to complete the project in the least possible time.
Interdependencies can be identified, and schedule control tools like crashing and fast tracking can be
deployed for decreasing the time allocated for certain activities.
 Case study
BRIDGING GAPS WITH PROJECT SCHEDULING
➢ An infrastructure development organisation, IDC, which is wholly owned by the
municipal corporation of a large city, was assigned the responsibility of constructing a
railway bridge at the city’s entrance.
➢ Santiago Calatrava, a renowned architect, designed the 4,500-ton, 380-metre railway
bridge that was constructed at cost of $65 million. The bridge was constructed with steel
and concrete. It consisted 66 – 150-metre-long cables that are suspended from a pylon
that stands 119-metre high.
➢ In the bridge construction, the major challenge posed was to acquire two main
construction materials – concrete and steel. Two distinct schedules of two different and
independent subcontractors, a steel construction company and a concrete company, were
combined together to create a project schedule for bridge construction. The final project
schedule consisted of nearly 1500 tasks.
➢ The corporation hired a project management consultant to analyse the project schedule
who helped to understand critical parts and requirements of the project. At the beginning
of the project, the project manager assigned a super critical status to the steel aspects of
the project, not giving much importance to concrete aspects. A detailed report by the
consultant also stated that the steel aspects were critical to the project schedule.
 Case study
BRIDGING GAPS WITH PROJECT SCHEDULING
➢ But an analysis revealed that there were only nine days of float available for
some concrete-related tasks that existed in the critical paths but were not
obvious. This revelation led the project manager to make significant changes in
the project schedule that included alteration in concrete components and
changes in priorities. As a result, a new improved schedule was developed.
➢ However, an in-depth analysis of the revised schedule by the project
management consultants revealed that the though steel held a critical place but
the most critical concrete tasks now had a float of eight weeks, i.e. of two
months instead of the earlier float of less than two weeks.
➢ The report of in-depth schedule analysis provided a detailed management
insight which helped uncover hidden risks in this project. A high-level process
map would not have given the project manager an opportunity to test the
accuracy of his assumption about the critical aspects of the project mentioned in
the project schedule.
➢ The detailed analysis helped the project manager pinpoint the criticality of
many concrete-related tasks and take appropriate action to address this
criticality to ensure the success of the project.