Introduction to Lean Six Sigma-Salex Tax Process Mapping using SIPOC

1. Sales Tax Process Mapping
Workshop Using SIPOC

2. SHARE YOUR EXPECTATIONS AND PERCEIVED BENEFITS
What do you expect to learn in this session?
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3. OBJECTIVES
At the end of this session, you will be able to:
 Get a broad overview of Lean Six Sigma and its applicability in Finance
 Explain the purpose of using the SIPOC diagram.
 Summarise the concepts of Suppliers, Inputs, Processes, Outputs and
Customers.
 Learn how to build the SIPOC diagram.
 Try it in the case of the sales tax process.
 Explain the concepts and conventions of Process Mapping.
 Identify the advantages of applying Process Mapping as a team and
individually.
 Identify the differences between Linear and Deployed process maps.
 Explain the context of Process Mapping within your work environment.
 Apply the learning to the sales tax process.
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4. WHY ARE WE HERE TODAY
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“The most important lesson is always that
when we evaluate a situation properly
together, there is actually no problem that
we cannot solve. It isn’t that we don’t have
enough money, that we don’t have the people
or that we don’t have the skills. The problem
is often that we don’t fully understand
exactly what the problem is.”
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5. LEAN SIX SIGMA OVERVIEW
DEFINATION
Lean Six Sigma is an approach focused on improving quality, reducing
variation, and eliminating waste in an organization.
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As wasteful activities are removed overall process variation is reduced
It is the combination of two improvement programs: Six Sigma and Lean
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6. LEAN SIX SIGMA HISTORY
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The concept of Six Sigma was
developed in the early 1980s at
Motorola Corporation. Six Sigma was
popularized in the late 1990s by the
General Electric Corporation and their
former CEO, Jack Welch.
Lean originated from the Toyota Motor
Corporation as the Toyota production
system (TPS), and increased in
popularity after the 1973 energy crisis. The first concept of Lean Six Sigma was
created in 2001.
In the early 2000s Six Sigma principles
expanded into other sectors of the
economy, such as Healthcare, Finance,
and Supply Chain
Lean 1970s
Six Sigma 1980s
Lean Six Sigma 2000s
Many other Companies and Industries have embraced Six Sigma achieving Greater
Customer Satisfaction and Improved Profitability
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7. UNDERSTANDING LEAN SIX SIGMA – EXAMPLE
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Answer: Player B
Player A Player B
Q1: Which player do you think did better in this round? Answer: Player A
Q2: Which player do you think will do better in the long run?
Archery Competition
The real problem with Player A is “Variation”, Even though Player A has
better score, but Player B is more “Consistent”
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8. IS 99% GOOD ENOUGH? DEFECTS PER MILLION OPPORTUNITIES
99% Good
(3.8 Sigma)
99.999998% Good
(6 Sigma)
200,000 wrong drug prescriptions
per year
5000 incorrect surgical operations
each week
770 coding errors per day
14.4 minutes of unsafe
drinking water per day
68 wrong drug prescriptions
per year
1.7 incorrect surgical
operations each week
10 coding errors per year
0.3 seconds of unsafe
drinking water per day
a
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9. UNDERSTANDING LEAN
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It focuses on cutting-out waste!
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10. LEAN SIX SIGMA PROJECT TYPES
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11. LEAN SIX SIGMA TOOLS
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12. “Improving what we do every day in a structured way”
SIPOC
FISHBONE
5 WHYS
BRAINSTORMING
VA, BNVA, NVA
TIMWOOD-I
SIPOC
5S
BRAINSTORMING
5S
BRAINSTORMING
THE FOUR STAGES OF PROBLEM SOLVING
“Improving what we do every day in a structured way”
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13. WHAT IS SIPOC
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 SIPOC is a tool that illustrates the process, the roles that are involved
in the process (e.g., suppliers and customers), and how each role is
involved (e.g., the inputs they provide or outputs they receive)
Suppliers
Significant
internal /
external
suppliers to
the process
Input
Significant
inputs to the
process
Process
One block,
representing
the entire
process
Output
Significant
outputs to
the internal /
external
customers
Customers
Significant
internal /
external
customers to
the process
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14. EXERCISE
SIPOC ANALYSIS OF THE SALES TAX PROCESS
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15. DEFINITION OF PROCESS
A process is a collection of activities that takes one or
more inputs and transforms them into outputs that
are valuable to the process customer.
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16. THE FOUR STAGES OF PROBLEM SOLVING
PROCESS MAPPING Process Mapping is not
isolated to stage 1, but
is strongly used as we
first look to understand
“What is the
Problem?”.
It can be used in all
stages.
“Improving what we do every day in a structured way”
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17. SELECT THE PROCESS MAPPING APPROACH
Observe the process and
assemble the team.
1. Agree on the first and last
steps.
Are multiple functions or
departments involved?
2. Determine what departments/
functions are involved.
3. Record the remaining steps in order,
and allocate to the column.
4. Add arrows to show the flow.
5. Identify improvement opportunities.
Preparation
Development
No
Yes
Linear
Deployed
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18. 18
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19. VOICE OF THE CUSTOMER (VOC)
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20. Questions:
1. Why would you map a process?
2. Why would you create a “to be”
process map?
3. Why would you choose to use a
Deployed process map instead of
a Linear one?
EXERCISE: POP QUIZ
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21. EXERCISE: POP QUIZ (CONT.)
Why would you map a process?
 To clearly define and agree on the process steps within the project
teams or with Process Performers.
 To identify opportunities for process improvement.
Why would you create a “to be” process map?
 To focus on improvement opportunities detected during the “as is”
process mapping and how to remove the waste.
Why would you choose to use a Deployed process map instead of a
Linear one?
 A Deployed map is used when a process moves between various
departments or functions.
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22. EXERCISE
MAPPING THE SALES TAX PROCESS
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23. MAPPING THE SALES TAX PROCESS
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Preparation:
Observe the process and
assemble the team.
1. Agree the first and
last steps.
2. Determine what
departments/
functions are
involved.
3. Record the
remaining steps in
order, and allocate
to column.
4. Add arrows to show
the flow.
5. Identify
improvement
opportunities.
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24. Q&A
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25. THANK YOU

26. HANDOUT: STANDARD MAPPING SYMBOLS
Preparation
Shows steps that take place in preparation, such as “set-
up” or “gather team”.
Start and End
Points
Identifies the boundaries of the process.
Activity
Indicates what is being done, all (necessary and
unnecessary) activities performed in the process.
Decision
Illustrates decision points and where loops occur in the
process. Also used to accept, reject, approve and so on.
Arrow Represents a process path/ flow.
Connector to
Input or Output
Shows connect to inputs or outputs without the detail;
can be an “off-page” reference.
Delay
Looks for delays, work-in-progress (WIP) and inventory
within the process. Record data on duration in the
comments column.
Report
Depicts a report, document or computer file that is
generated. Note recipients in the comments column.
Sub-process
Signifies a sub-process. They use shadow boxes, and
are analysed on other flowcharts to stop the process
map from becoming too detailed.
No
Yes
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27. LEAN TOOLS…
TIM WOODS – Categories of Waste
1. Transportation 2. Inventory 3. Motion
Non necessary, non-value adding
movement of material, information
or people
Inappropriate levels (high or low) of
material, goods or work in process
(including paperwork ) or information
Excessive people movements, actions, effort
driven by poor ergonomic, process layouts, or
organizational configurations (Ergonomics)
5. Over Production
4. Waiting 6. Over Processing 7. Defects / Rework
Delays or
waiting resulting
in idle people or
assets
Difference between
what is produced and
the specification,
resulting in scrap or
rework
Inappropriate levels of
processing, complexity or
non standardization that
results in doing more or
less than what the
customer values in a
consistent way
Difference between
what, when the customer
requires the product and
what is actually produced
The miss
application of
skills and/or
overloading
resources
8. Skills
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28. LEAN TOOLS…
5S A series of activities for eliminating wastes and making sure no problems
are hidden and that they can be addressed quickly.
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29. Six Sigma uses a special role model with
popular certifications:
LEAN SIX SIGMA CERTIFICATIONS
Six Sigma Champions:
Project sponsors
and mentors
Six Sigma Master Black Belts:
Full-time program managers,
PMO heads and educators
Six Sigma Black Belts:
Full-time project
managers
Six Sigma Green Belts:
Part time project
coordinators and
assistants