Contents of Deployment Plan

This section provides an in- depth discussion of the contents of the deploy- ment plan. One of the most important components of the plan is the cover sheet, which contains the official signatures of the executive management team indicating full approval of the deployment plan. Following are the spe- cific contents:

• Cover sheet: In addition to the official approvals, the cover page should include the company name, the title of the program (such as Lean Six Sigma Deployment Plan), the date the report was written, and the author or department that created the report. If the organi- zation uses specialized tracking or identification numbers for proj- ects, these should be included too.

• Overview: This section provides the purpose, business context, and project summary in an executive summary format. It identi- fies the purpose of the deployment plan and its intended audience, describes the business processes that will be modified as a result of the deployment, and provides a summary of the plan. It also includes Company Name __________________________________________

Location: ________________________________________________ Date: ________________________

Alterative Description: ______________________________________ Alternative Tracking Number: ____

PASS Step 1: Estimate quality improvements and attach supporting documents %

Estimate productivity improvements parts/year

Estimate cost reductions $/year

Estimate revenue increase $ $/year

Step 2: Attach process flowcharts for the process Step 3: Feasibility Analysis

Technical

Compatibility with current work processes and material handling

Operational

Labor Impacts (Additional work hours) Supervisory Needs

Maintenance Needs Productivity Impacts Safety Concerns and Impacts Product Quality Impact Addition labor requirements Organizational

Impact on sales Impact on marketing Impact on employee morale Impact on corporate image Impact on Supply Chain

Lean Six Sigma Alternative Feasibility Analysis Worksheet C Process Changes

The purpose of this work sheet is to evaluate the feasibility of alternatives that have passed the screening process. All grayed boxes should be completed before completing the Approval Process in Step 6

FIGURE 8.29

124 Lean Six Sigma for Engineers and Managers: With Applied Case Studies

an overview of activities necessary to get the program launched into the business environment such as installation, configuration, and initial operational activities. It also includes details regarding the location where the assessment was conducted, the dates that it was conducted, the names of the individuals conducting the project, and a facility layout.

• Assessment Findings and Recommendations: This section provides a summary of the principal findings, recommendations, and

Step 4: Cost Analysis

New Material Costs

Previous Material cost per load $ New material cost per load $ Material cost differential $ Annual loads purchased $ Annual material cost differential $ Operating Expenses

Utility cost impacts $

Labor cost impacts $

Supervision cost impacts $ Maintenance cost impacts $ Operating and maintenance supply impacts $ Changes in Overhead costs $ Operating Savings and Revenue

Reduced operating costs $ Revenues from increased productivity $ Revenues from the sale of end products $ Total Initial Investment $ Annual Operating Savings $

Payback period $

Net Present Value (NPV) $ Internal Rate of Return (IRR)

Organization Minimum Attractive Rate of Return (MARR)

Step 5: Feedback Analysis

Feedback from operators Feedback from management Feedback from maintenance Feedback from finance

Step 6: Approval

Lean Six Sigma Team Leader

Manager, Maintenance name date

Manager, Operations name date

Manager, Finance name date

CEO name date

name date

Lean Six Sigma Alternative Feasibility Analysis Worksheet C (Page 2 of 2) Process Changes

FIGURE 8.30

125 General Approach to Implement Lean Six Sigma

observations. It discusses the data collected during the assessment in terms of quality and cost improvements. It also provides a listing of the approved alternatives for implementation.

• Assumptions, Dependencies, and Constraints: This section describes the assumptions about the current organizational capabilities and the day- to- day operations of the program. In addition it describes the depen- dencies that can affect the deployment of the program, such as working within the constraints of third- party vendors, staff expertise, and the factors that limit the ability to deploy the program.

• Operational Readiness: This section describes the preparation required for the site on which the program and alternatives will operate. It defines any changes that must occur to the operational site and speci- fies features and items that should be modified to adapt to the program alternatives. It also describes the method for use in assessing deploy- ment readiness and identifies the configuration audits and reviews to be held after the program is tested and accepted and before the program or equipment is installed in the production environment. • Timeline for Implementation: This section describes the timetable for

the implementation of each Lean Six Sigma project or the entire pro- gram. It serves as the control document to facilitate communication Company Name __________________________________________

Location: ________________________________________________ Date: ________________________

Alterative Description: ______________________________________ Alternative Tracking Number: ____

PASS Step 1: Estimate quality improvements and attach supporting documents _%

Estimate productivity improvements _parts/year

Estimate cost reductions _$/year

Estimate revenue increase _{$ $/year}

Step 2: Attach process flowcharts for the process Step 3: Feasibility Analysis

Technical

Does the material exist (vendor or manufacturer)? Yes No

Compatibility with current work processes and material handling

Operational

Safety Concerns and Impacts Product Quality Impact Addition labor requirements Organizational

Impact on sales Impact on marketing Impact on employee morale Impact on corporate image Impact on Supply Chain

Lean Six Sigma Alternative Feasibility Analysis Worksheet D Purchasing Changes

The purpose of this work sheet is to evaluate the feasibility of alternatives that have passed the screening process. All grayed boxes should be completed before completing the Approval Process in Step 6

FIGURE 8.31

126 Lean Six Sigma for Engineers and Managers: With Applied Case Studies

within (departments) and outside the organization (suppliers and contractors). A Gantt chart is an excellent diagram to include in this section as it displays the order or precedence of events and the per- cent completion to the established timeline. Figure 8.33 provides an example of a deployment timeline.

• Training and Documentation: This section describes the plans for pre- paring and conducting training for the purpose of training all stake- holders regarding program or process changes. It also identifies and

Step 4: Cost Analysis

New Material Costs

Previous Material cost per load $ New material cost per load $ Material cost differential $ Annual loads purchased $ Annual material cost differential $ Operating Expenses

Utility cost impacts $

Labor cost impacts $

Supervision cost impacts $ Maintenance cost impacts $ Operating and maintenance supply impacts $ Changes in Overhead costs $ Operating Savings and Revenue

Reduced operating costs $ Revenues from increased productivity $ Revenues from the sale of end products $ Total Initial Investment $ Annual Operating Savings $

Payback period $

Net Present Value (NPV) $ Internal Rate of Return (IRR)

Organization Minimum Attractive Rate of Return (MARR)

Step 5: Feedback Analysis

Feedback from operators Feedback from management Feedback from maintenance Feedback from finance

Step 6: Approval

Waste Minimization Team Leader

Manager, Maintenance name date

Manager, Operations name date

Manager, Finance name date

CEO name date

name date

Lean Six Sigma Alternative Feasibility Analysis Worksheet D (Page 2 of 2) Purchasing Changes

FIGURE 8.32

127 General Approach to Implement Lean Six Sigma

describes each document that will be produced for the purpose of aiding in implementation, support, or use of the new programs. The section should include the activities needed to create each document. • Notification of Deployment: This section describes the method of notify- ing all stakeholders of the successful release of all Lean Six Sigma pro- grams and identifies stakeholders and groups requiring notification. • Operations and Maintenance Plans: This section describes the mainte-

nance and operations activities for each program or piece of equip- ment. For example, preventive maintenance schedules should be included for each new piece of equipment.

• Contingency Plan: This section describes the contingency plan to be executed if problems occur during deployment activities. A contin- gency plan is devised for specific situations if or when things do not occur as expected or circumstances change. Contingency plans include specific strategies and actions to deal with specific variances to assumptions resulting in a particular problem, emergency, or state of affairs. They also include a monitoring process and “triggers” for initiating planned actions. They are very useful to help govern- ments, businesses, or individuals recover from serious incidents in the minimum time with minimum cost and disruption.

• Appendices: This section contains all relevant appendices related to the project. The alternative evaluation sheets should be included in this section. Weeks: Start-To-Start Finish-To-Start Finish-To-Finish 0% Complete 0% Complete Today 0% Complete 0% Complete 0% Complete 50% Complete 67% Complete 75% Complete 57% Complete WBS 1 Summary Element 1 WBS 2 Summary Element 2 WBS 1.1 Activity A WBS 1.2 Activity B WBS 1.3 Activity C WBS 1.4 Activity D WBS 2.1 Activity E WBS 2.2 Activity F WBS 2.3 Activity G 1 2 3 4 5 6 7 8 9 10 11 12 13 FIGURE 8.33

128 Lean Six Sigma for Engineers and Managers: With Applied Case Studies