Department of Immigration and Citizenship
Pareto Principle
muda = obstacles to processes

We don't know what we don't know
We can't do what we don't know
We won't know until we measure
We don't measure what we don't value
We don't value what we don't measure

Reduce costs, improve productivity, increase market share, reduce defects, retain customers

Six Sigma is a:
System of management
Goal of near perfection
Statistical measure

Defect = something the customer does not want
CTQ = Critical To Quality

Assess performance against CTQs and identify variation between what the customer wants and what the customer gets. Variation = defect.

Sigma = standard deviation = number of defects
Low sigma = high variation. High sigma = low variation
DPMO = Defects Per Million Opportunities

Six sigma = single digit DPMO
Five sigma = huindreds DPMO
Four sigma = thousands DPMO

% without defects = High
DPMO = Low
Sigma level = High

70% without defects = 2 sigma = 308,537 DPMO
99.4% without defects = 4 sigma = 6,210 DPMO
99.9997% without defects = 6 sigma = 3.4 DPMO = NEAR PERFECTION

Reduce Variation
Common cause variation caused by something which is built into the system, requires large changes to eliminate
Special cause variation caused by something which is not inherent to the system, much easier to eliminate
Common cause variation = Problem
Special cause variation = Incident

PARETO PRINCIPLE: 80/20
80% of results are due to 20% of effort
80% of people use 20% of features...
80% of variation causes are trivial, 20% are important
80% of network traffic is LAN, 20% is WAN.

Experience: new tools to increase problem solving effectiveness
Recognition: work in many areas, interact with different people, link to successful results.
Job Satisfaction: challenge, new perspective, contribution to customer satisfaction
Point of View: look at processes differently, lead to breakthroughs

Roles:
Specialists working together to common goal

Black Belt: Leads, manages, inspires, coaches and delegates on a full-time basis. Forms, builds and manages teams, joins in training, and ensures results.
Master Black Belt (MBB): Coaches and mentors Black Belts, is a change agent, and provides training.
Green Belt: Is a team member, rarely leads a ream, and works part time on six sigma
Champion: Establishes roles, selects projects, allots resources, and reviews progress. Helps, quantifies efforts, shares best practices, applies lessons learned.

DMAIC Team & Problem Solving Model:
DMAIC (Define, Measure, Analyse, Improve, Control)
Six sigma uses teams to work on projects. Teams are led by a Black Belt or Green Belt. Teams may be diverse, coming from different parts of an organisation. DMAIC is the common tool that all team members use.
1. Selecting the project
2. Forming the team
3. Training the team
4. Following DMAIC to implement a solution
5. Transferring ownership of the solution
DEFINE step: project team formed, customers and their most important requirements are identified, project charter developed. Project charter includes the reson for choosing the project, a statement of the problem and the project goal, any limitations on the project and its scope, the team members, and the names of all who have a stake in the success of the project. It also includes a preliminary project plan. A chart of the high-level view of the process to be improved is developed.
MEASURE step: best ways to measure the process are identified, data collection is planned and executed, variations in the process are found, and current sigma level calculated.
ANALYSE step: data collected and process is analysed, to find the root cause of the problem. Experience, data and a process review are used to find possible causes. Repeat, refining or rejecting possible causes, until a root cause is found and verified with data.
IMPROVE step: identify, test, refine and implement a solution for the root cause of the problem. Possible solutions are identified and tested until the best solutions can be selected. An implementation plan is decided upon. The new approach is then implemented, and the improvement is validated.
CONTROL step: monitoring plan is document and implemented. The solution is institutionalised by updating policies, procedures, budgets, instructions and other management systems as necessary. Project is sold to the internal and external customers, management support is secured, and ownership is transferred to those who work with the new system.

Challenges:
Joining a team
Attending training
Discovering DMAIC already performed
Gathering data
Implementing a solution

Capabilities required:
Optimism, energy, enthusiasm, anticipation, perspective, open-mindedness, flexibility
Maintain a focused perspective: see a process from beginning to end, have awareness of customer's requirements and what competitors are doing, use that knowledge as a basis for making decisions. Capture a clear view of what your customers want and what your competitors are doing, envision where your particular job fits into the entire business process of which it is part, and then envision the process from start to finish.
Make fact-based decisions: gather and analyse relevant data, don't jump to conclusions and stop gathering data too soon, don't assume you know what the customers want without asking them, or assume you know what the causes of problems are. Generate as many potential criteria as you can, then gather sufficient data to objectively conclude which is the best decision.
Work toward continual improvement: change for the benefit of the organisation, not just for the sake of change. Be alert to industry trends, consider how your product can change to ride these trends.

LEAN:
Revolutionary Ideas Become Old
Redesign processes and procedures to fulfil customer expectations without slashing staff or production
Avoiding costs, decreasing time-to-market for new products, reducing inventory and the need for expensive storage facilities, meeting customer needs more quickly without sacrificing product quality, maximising the workforce and minimising job cuts.
Definition:
Concurrent improvement - improvements take place simultaneously in all areas
Appropriate removal of wasteful activities - activities that do not add value
Organised improvement projects to create efficient processes and quality products - specific production improvement initiatives
Reorganisation of workforce effort to support improvements - designing processes and strategies that apply employee effort in the best way to attain the most value

"The pursuit of concurrent improvement in all measures of manufacturing performance by the elimination of waste through projects that change the physical organisation on the shop floor, logistics and production control throughout the supply chain, and the way human effort is applied to both production and support tasks." - Michel Baudin

Define "value" in the same way your customers do.
Problems: Company defines value, technology defines value, local economy defines value.

How does an organisation determine product value?
Has a value stream analysis been conducted properly?
What steps in the value stream that add no value can be removed?

Value Stream Mapping:
Provides uniformity - Enhance communication, improve flow
Explains your processes - see the flow in the big picture, identify wasteful processes.
Provides a blueprint - detained description of how the organisation should operate in order to create flow, eliminate waste and streamline processes.

Waste:
1. overproduction and excessive inventory
2. downtime
3. transportation
4. processing and unnecessary motion
5. making defective products

Striving for perfection is a never ending process. Waste can always be found.
Organisations must be willing to take as many steps as necessary to strive for leaner practices, compete against higher standards, keep goals in clear view, establish appropriate timelines for continuous improvements, and prioritise projects.

- Six Sigma starts with customer reqirements
- Involves project teams led by trained Six Sigma practicioners
- Data-driven approach using statistical tools
- Typical project lasts 4-6 months
- DMAIC process

Lean 5-step process:
1: Specify value from the customer's perspective
2. Map the value stream
3. Eliminate waste
4. Flow the deliverable
5. Perfect the process