Digital Six Sigma integration with Directed Innovation for Generation of High-Quality Solutions

Digital Six Sigma
and Directed Innovation

Jeff Summers – Director, Motorola University
Maria Thompson - Director, Intellectual Asset
Management Process & Tools

Version 1.2
MOTOROLA and the Stylized M Logo are registered in the U.S. Patent & Trademark Office. All other
product or service names are the property of their respective owners. © Motorola, Inc. 2009.

Objectives

• Develop an understanding of how the DSS & Directed
Innovation methodologies complement each other

• Apply at least one DSS and one complementary
Directed Innovation technique to solve a valuable
problem

• Develop action plan(s) for future application of
appropriate DSS and/or Directed Innovation
methodologies

Process Excellence Week -- 2 08/31/09 Version 1.2
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
All other product or service names are the property of their respective owners. © Motorola, Inc. 2009

What is Six Sigma?

What does Six Sigma
mean to you?


What is Six Sigma?
One Term, Multiple Meanings
Business
Impact
Management
System
Drive Vital Few
Dedicated Resources
Data-Driven Decisions
Customer Focused
Improvement
Methodology
(DMAIC, DMADV, DMADDD)

Metric
3.4 DPMO

Literal Philosophical
Definition Definition
DPMO = Defects per Million Opportunities

MORE DETAIL AT: http://www.isixsigma.com/library/content/six-sigma-newbie.asp

Minimizing Variation

Variation

Customer
Satisfaction

• Minimizing variation is a key focus of Six Sigma.
• Variation means that a process does not produce exactly the
same result every time the product or service is delivered.
• Variation leads to defects, and defects lead to unhappy customers
and Cost of Poor Quality.
• Variation exists in all processes Data Variation


Using Mean and Standard Deviation

• Mean (µ)
– Average of Values

• Standard Deviation ( )
– How far values lie from the mean or average
– Standard Deviation is a measure of Variation


Six Sigma is Virtual Perfection!
Three Sigma Six Sigma

At least 54,000 wrong drug One wrong drug prescription in
prescriptions per year 25 years

27 minutes of dead air time per 2 seconds of dead air time per
TV channel each week TV channel each week

5 short or long landings at 1 short or long landing at all
O’Hare airport each day U.S. airports in 10 years


Where’s The Magic?
Status Quo
Tools to Drive Subjectivity, Conjecture,
Objectivity & Data & Strong Personalities
Driven Decisions

Step By Step Process Shoot from the Hip, Figure it Out
Improvement As We Go, High Variation in
―Recipes‖ Results

No Metrics or Mean Based
Variance Based Metrics
Vs. Metrics

Dedicated, Proactive Process Part Time Firefighters
Improvement Resources

A Leadership Tool:
-A Common Language Multiple, Disjointed Initiatives
-A Mobilization Platform &
-A Catalyst To Drive Change ―Hobby‖ Projects

86

How is Digital Six Sigma Different?

• New Focus – Strategically aimed at Big Y’s with a $3 Billion target

• New Organization – Dedicated resource deployment team

• New Tools – DMAIC + (Lean, DFSS and Change Management )

• New Thinking – Heavy emphasis on leadership and fact-based decisions

• New Technology – IT solutions to ―hard code‖ Six Sigma solutions
–Digital Cockpits to provide real-time tracking of process performance
–E-Learning
–Low cost web applications & workflow tools

• New Applications – Six Sigma for Product Development

DSS Methods Overview

DMAIC
Variation & Defect
 Use for improving quality & service problems;
Reduction reducing variation

Lean
Process Efficiency  Use for improving process optimization & speed
& Speed

DFSS
New Product &  Use for developing new processes; or radical change
Process in process


What can we expect from DSS?
Performance
Improvement The Process Half–Life Effect
100%
Lean/
DMADV

DMAIC
50%

20%
Low Hanging Fruit

Traditional Management
Ford 8-D
0% (Status Quo)

Crisis Crisis
-10%
3 6 9 12 months
Ray Stata, Sloan Management Review, 1989.


How do you know which approach to use?

• Often a project team may not know which methodology to use until
after the Analyze Phase.

• Use DMAIC when…
– an existing product, service or process is failing to meet customer requirements
or is not performing adequately.
– there are opportunities for continuous improvement without radical change
– Trying to reduce defects or variation in a process
• Use DMADV when…
– a process is required but does not exist (or radical change)
– an existing process has been optimized using DMAIC but is still failing to meet
customer requirements
• Use Lean when…
– a process is encountering cycle time issues (often transactional)
– optimizing a process for speed and efficiency
• Use BLITZ when…
– quick wins can be implemented to solve the majority of the problem


DSS Methodologies
DMAIC / Lean / DMADV The Process
 Systematic methodologies focusing on problem
solving & continuous improvement

Design For Six Sigma (DFSS) The Product
 Systematic methodology focused on creating
new products
 Often required to achieve true 6 capability that
Customers can see - by reducing variability &
preventing problems in the design phase
83


Digital Six Sigma Flow Chart
Change Management
Define Measure Analyze Improve Control
D Business Issue Process Solutions Document &
M Case Statement Mapping (VSM) Developed Standardize
A
I Team Process Solutions Digitize &
C Charter Measurement Selected Draw Down

Stakeholder Measurement DOE
Analysis Systems Analysis Testing
L
E Risk
Assessment
A yes

Analysis
Value
N Cause
Root
Customer
Information Performance
no
Achieved
New Process
no
or Product
no
yes
D
M BHAG
A
D Customer Needs Paradigm Ideal
QFD Verify
& Requirements Analysis Design
V
1

Six Sigma for Product Development
Product Portfolio Product
Definition & Commercialization
Development

Business
Strategy MFSS
P2D2 C D O V Product
Marketing
I D E A Launch
Strategy DFSS
C D O V
Technology
Strategy
SDFSS
I2 D O V
TDFSS
Technology &
I2 D O V Software Platform

8
Development
3

Stakeholders VOC VOB VOP

P D M

D
? A
Prioritization
I Quick
Wins
Projects

Decide

E

C
S
A Phase Gate Process

What causes six
sigma projects
to fail?


The ―Define‖ Phase Is Critical
70% of process initiatives fail due to:
Project Selection Lack of alignment with a strategic priority
Insufficient reasons for change
No financial estimate
Can’t be completed in 3-6 months
Team Charter
No clear & measurable goals
Not staffed with the right people or enough time
Stakeholder Key stakeholders unwilling to try new solutions
Analysis Key stakeholders and managers not committed

Risk
Assessment Starting projects with no understanding of risk
Ignoring early red flags

Customer Lack understanding of customer experience & needs
Requirements


The Elements of Change

WHO

INTERNAL
CONTEXT HOW WHAT

EXTERNAL
CONTEXT


The Growth (―S‖) Curve

Maturity

Performance
Rapid Growth
Decline

Formation

Adapted from Nadler, D. A. (1998)
Time

1

0.9

0.8

0.7

0.6

0.5
Risk
0.4

0.3

0.2

0.1

0
DMAIC LEAN DMADV


Managing Transitions
How people experience and react to change and its transitions can have a significant
impact on the success of the initiative. The illustration below provides a good overview
of how people experience change.

Experiencing Change and Transition
Endings Transition Zone New Beginnings

Uncertainty Commitment
Uncertainty Commitment

Creativity
Excitement Accomplishment
Innovation High Energy
Anticipation Learning

Relief
Confusion Anxiety Unsure
Frustration Resistance
Reservation Confusion Ambivalence
Denial
Skepticism Exploration
Skepticism Exploration

Adapted from Managing Transitions , William Bridges


1.1 Complete the Business Case for Change
defining current state, desired future state,
gaps, and actions
Change tool used: Business Case for Change

The Business Case for Change (BCC) is the most important
document of any change initiative.

Current situation

Plan for HOW to close the gaps (WHATs)
Desired future state


Business Case for Change walkthrough


Exercise: Developing a Business
Case for Change

1. Break into teams EXERCISE

2. Read the Overview section in the case
study handout
3. Develop a Business Case for Change using
the information in the case study and the
instructions in the BCC tool.
Handout: Handout:
Case Business
Case for Prioritization
Study
Change Quick
Projects
Wins

Decide


Project Schematic Example

Big Y (VOB) NPI Say/Do

Little y’s Price Unit Volume Manufacturing Development
<10% >75% Cost <10% Cost <5%

Vital X’s Product Launch Business Case
Timeliness Effectiveness
• Resource Management
• Customer Insight Process
• Work Allocation
DSS Projects • Market Size Forecasting
• Specs / Requirements
• Commercial DOE Testing
Management
• ―Do‖ Rescue Tools Kit
• Digitized M-Gates


Process Measures
What Are Process Measures? Numeric indicators of process ―health‖

Why Have Them?
• Tells you how well you are meeting customer requirements
• Clarifies the ―defect‖
• Determine capability of process & amount of improvement required

Quality Characteristic Numeric Indicator

Customer Need Amount of change required
*Accuracy *Time days, weeks, hours, minutes
*Defects *Reliability % of __________________
# of (defects) per (day)


Determine What to Measure: Listen to Customers
Effective process improvement means that the measure we use in our
business is directly tied to our customers.
• Step 1: Develop a Customer-Focused Business Strategy
– Assess the business needs
– Identify customer segments

• Step 2: Listening to the VOC
– To obtain useful and valid customer information and feedback:
• Select research methods to gather customer information
• Probe for complete understanding

• Step 3: Translating Voice of the Customer (VOC) into Critical
Customer Requirements (CCRs)
– Organize and verify customer needs data into CCRs
– Determine CCR priorities
– Identify CCR measurement and targets

• Step 4: Developing Measures and Indicators
– Identify customer issue statements
– Translate the CCRs into output indicators:
• Identify and select output indicators
• Establish output performance targets

Translating VOC into CCRs
1. Group similar and common statements received from customers. Select or adjust
comments from each group to form a single statement which best represents the VOC.
2. Clarify, in measurable and specific terms, the customer requirement(s) associated with
each key VOC statement.
3. Based on clarification gathered through Voice of the Customer and the Critical Customer
Requirements, state the key customer issue associated with each VOC/CCR statement.

Voice of the Customer Critical Customer Requirement Key Customer Issue
Actual customer statements and The specific, precise, and measurable Describes the experience
comments which reflect their expectation which a customer has surrounding the product or service
expectation of a product or service. regarding a product or service. expected or desired by the customer.

It should reference a process and the
direction of improvement.
“My burger is cold and stale.” Burger should be warm and Increase temperature of delivered
fresh. food in the burger production process

“I’m waiting way too long for my Total time per order should not Reduce cycle time in burger order
order.” exceed 2 minutes. process

“These ingredients are too messy.” All toppings should not extend Decrease variation in placement and
beyond the bun’s diameter. amount of ingredients in the burger
production process


CTQ & CTP Examples
Critical to:
The Customer
The Market

Process Output
Indicators CTQ’s
Critical to:
Price/Unit
The Business CTQ’s Delivery Time
The Regulator ________ Dimensions

The Employees ________ Purity
Reliability
CTP’s Color

Cost/Unit Service Level
CTP’s
Productivity
Compliance with ________
Regulations ________
Changeover Time
Safety
Certification


Develop An Issue Statement
Process Quality Change
Reference Characteristic Indicator

Process that needs What needs Nature of the
improvement improvement improvement

• Design • Defects • Increase

• Accounts Receivable • Cycle Time • Decrease
• Order entry • Rework • Improve
• Shipping of parts • Efficiency • Reduce
• Invoicing • Complaints • Eliminate


Project Schematic Example

Big Y (VOB) NPI Say/Do

Little y’s Price Unit Volume Manufacturing Development
<10% >75% Cost <10% Cost <5%

Vital X’s Product Launch Business Case
Timeliness Effectiveness
• Resource Management
• Customer Insight Process
• Work Allocation
DSS Projects • Market Size Forecasting
• Specs / Requirements
• Commercial DOE Testing
Management
• ―Do‖ Rescue Tools Kit
• Digitized M-Gates

Issue Statement Improve the accuracy of the customer insight process


Root Cause Analysis

 Identification of the few underlying factor(s) causing the problem

 Identifies the vital X’s driving the Y performance

 Attacking the top 20% of causes will solve 80% of the effect (80/20
Rule)

 Avoids implementing quick fixes that only cover up the problem

 Builds data-driven consensus on prioritized causes


DMAIC

Reduce Defects using
DMAIC

Version 1.2

Reduce Defects using DMAIC

Objective
• Understand & Measure the sources of defects and
variation in your process or product.
• Brainstorm potential Root Causes and let the Data
guide you to a decision.
• Develop solutions that best address the root cause.

Key Tools
– Affinity Diagram
– 5 Why’s
– Cause & Effect Diagram (a.k.a. Ishikawa, Fishbone)


DSS Methodologies

DMAIC
Variation & Defect

Lean
& Speed

DMADV
Process in process


DMAIC Phases and Tools

Define Business Case, Team Charter, Stakeholder Analysis,
Opportunities VOC, CCR's, CTQ's, SIPOC, Process Maps

Measure Baseline Performance, Operational Definitions,
Performance
Measurement Plan, QFD, Check Sheets

Analyze Brainstorming, Root Cause Analysis, Cause & Effect
Opportunity Diagrams, Pareto Diagrams, Affinity Diagram

Improve Develop solutions, Testing, Confirming solutions,
Performance Communication Plan, Solution Matrix

Control SPC, Control Charts, Document & Standardize,
Performance Control Plan, SOP's, FMEA


Brainstorm Causes


Affinity Diagram
Affinity Diagrams encourage creativity by everyone on the
team at all phases of the process by breaking down long-
standing communication barriers. Teams use this type of
diagram to overcome team paralysis which is brought on by
an overwhelming array of options and lack of consensus.

When using Affinity Diagrams follow these simple steps:
1. Write the issue under discussion in a full sentence
2. Brainstorm at least 20 ideas or issues
3. Without talking: sort ideas simultaneously into 5-10 related groupings
4. For each grouping, create summary cards using consensus


Affinity Diagram
Issues Surrounding Returned Orders
Our store and equipment We must focus on the order
Must be more reliable creation & fulfillment

Mechanical Store Environment Order Entry Toppings problems

Grill not Toppings too
Not enough workers Poor Handwriting Messy at ingredients
Hot enough
station

Not enough Wrong combination
Fryer did not Cashiers at front Of toppings
Stations are Counter
cook french fries
Too crowded
thoroughly
Vegetables not
fresh
Incorrect written
order by cashier
Burger Buns
are stale

Tip: Use Post-it Notes when brainstorming the ideas so that they can be moved
around more easily.


5 Why‘s
Using the Cause and Effect diagram with the major categories, begin with the
―most likely‖ — the questioning of ―why.‖
• Why does this occur?
• Why does the condition exist?

Root Cause – Most Basic Reason a Problem Has or Could Occur
1. Ask ―Why‖ 3-5 times.
– Why is this failure mode active?
Progressively becomes more difficult and a more
thought provoking assignment.

Symptom 1
Early questions are usually superficial, obvious;
Why did this ―why‖ the later ones more substantive.
Symptom 2
happen?
―why‖ Symptom 3
―why‖ Symptom 4
And more ―why‘s‖ Probable Root Cause


Example of 5 Why‘s

• Problem: Order returned due to cold food.

Why is this burger cold?
 Took too long from the grill to customer
Why did it take too long?
 Had to wait for fries to be added
Why did it wait for the fries?
 Fries were not dropped into the fryer
Why were the fries not dropped into fryer?
 Fry station worker rotated to help cashier


Cause and Effect Diagram
Perhaps the most useful tool for identifying root causes is the cause and effect diagram. It goes by
several names (Ishikawa, fishbone, etc.) and there are a variety of ways to use it. The cause and
effect diagram is primarily a tool for organizing information to establish and clarify the relationships
between an effect and its main causes.

The cause and effect diagram identifies the root cause(s) of the problem so that collective actions
can be taken to eliminate their recurrence.

The cause and effect diagram develops a picture composed of words and lines designed to show the
relationship between the effect and its causes.

Receipt process
Rushed salespeople
EFFECT Hourly completion
CAUSES Analyses were
Problem required
unable to verify
Statement
Rushed 40% of January
Too many sales receipts
Not enough sales
coverage at peak times
Salespeople

The cause and effect diagram assists in reaching a common understanding of the problem and
exposes the potential drivers of the problem.


Fishbone Example: Big Y‘s Burgers
5 M’s + E
Manpower Machine Material
No flame

Employee sick
Grill Broken Stale Bread

Understaffed
Too cold Unreadable
Ticket
Not enough Wrong Wrapping Material
Untrained
Assigned to work Sauce Dispenser Bad
lettuce
Fryer Problems
Returned
Ticketed wrong
Order
Crowded Space
Lunch Rush-too many orders
Incorrect
Order Excess Toppings
Incorrect Placement Order
Language
Barrier Toppings Delivered to wrong customer Not enough fries

Lighting Incorrect wrapping
Wrong Too Messy Too much ice
Toppings Wrong sizes used

Environment Method Measurement

Note: A Fishbone can be quantified using a Cause & Effect Matrix. See a Black Belt for more information.


Fishbone Example (Affinity)
Computer Internal Mail
System System
Cost-Reduction Program
Older System

Excess One Pick-Up Daily
Demand Downtime
Manual
Workspace Equipment
Sort
New Process
Access Limitations Excess Maintenance
Lost/Misplaced Mail
Demand Contractor
Turnover
Low Priority
Inexperienced Staff Invoices paid
Hiring
Freeze Turnover Audit Recommendation late
for Tighter Control
Centralized
Access Limitations
Payment Manual Crowded
Maximize Cash Authorization Files Space
Low Priority
Morale Payment Branch Offices
Paycuts Delays Forward Payments Weekly Missing Documentation
Productivity Deadlines Reorganization Resigned
Increased Workload of Purchase Org. No Limit Manager
Overtime Missing
Reduced Purchase Orders

Finance
Staff Documentation
Policy

Note: A Fishbone can be quantified using a Cause & Effect Matrix. See a Black Belt for more information.


LEAN
(DMADDD)

Improving process
optimization & speed

Version 1.2

Change Management
A

L
E Risk
Assessment
A yes

Analysis
Value
N Cause
Root
Customer
no
Achieved
New Process
no
or Product
no
yes
D
M BHAG
A
QFD Verify
V
1

Maximize Efficiency using Lean

Objective
• Look for major opportunities to improve speed
• Evaluate common inputs and outputs for parallel paths
• Quantify Value of major activities
• Develop and Test Improvements

Key Tools
– Voice of Customer
– Value Analysis


DSS Methodologies

DMAIC
Variation & Defect

Lean
& Speed

DMADV
New Product & Use for developing new processes; or radical change
Process in process


Lean (DMADDD) Phases and Tools
Define Business Case, Team Charter, Stakeholder Analysis,
VOC, CCR's, CTQ's, SIPOC, Process Maps

Measure Baseline Performance, Operational Definitions,
Measurement Plan, QFD, Check Sheets, Surveys

Analyze Brainstorming, Value Analysis: Identify process areas
causing poor efficiency

Design
Develop & Prototype Solutions, Communication Plan

Digitize
Automate new solutions.

Ensure Compliance to Process, Remove Parallel
Draw Down
Paths & „work arounds”

Value Analysis
Why do a Value Analysis?
• 80% of most processes are non-value added work!
• Design out work that consumes valuable time and energy

Business
15%
Requirements
• Work that keeps the Business 30%
organization running, Requirement Rework
but has no value to Not done right first time
the external customer Poor quality, rejects,
• Financials returns
• Hiring • Checking Bureaucracy
• Approvals • Work no one uses
20% Value Added • Redundancy • Reports not used
Work • Non-productive
meetings
Value-Added
Work Bureaucracy
It physically changes Idle Time
the inputs • Waiting/ Delays
• Backlog 10%
The customer is willing
to pay for it, or
requires it
* Features customer Last Super Bowl, the Ball
cares about 25% was in motion 17 minutes!


Understanding Value Analysis
• Introduction to Improvement Criteria
– Team can often identify quick and simple opportunities for significant
improvement.
– Sometimes these quick wins are sufficient for accomplishing the team’s
improvement goals.
• Customer Value-Added - An activity can be described as adding value for the
customer only if:
• The customer recognizes the value
• It changes the product toward something the customer expects
• It is done right the first time
• Operational Value-Added - An activity adds operational value if it is not a customer
value-added activity and is:
• Required to sustain the workplace ability to perform customer value-added activities
• Required by contract or other laws and regulation
• Required for health, safety, environmental, or personnel development reasons
• Done right the first time
• Non Value-Added Activities
• A team preparing to perform a value analysis of a process will begin by asking some
questions relative to each step in the process. Some of these questions may
include:
– Is this step required by a customer?
– Could this step be eliminated?


Understanding Value Analysis

• Examples: Non-Value-Added Activities
– Proofreading
– Counting the amount of work
– Inspection and checking
– Sorting work
– Logging information
– Checking calculations
– Reviewing and approving
– Moving and set-up
– Monitoring work
– Stamping
– Any type of rework


Value Analysis
Job A
1) Process Walk Through

As A Group:
• Review each job tasks and materials
• One flip chart page per job

2) Separate Value from Non-Value Work
• Review each activity & input for value/non value 20% value
Value Add =
– Customer will pay for it
– Changes inputs Value line
Non-Value=
– Redundant 80% non-value
– Rework
– Unnecessary
– Inefficient
• Move value added activities above the value line
• Move non-value activities below the value line

Value Analysis
Non-Value Categories
Priorities

3) Verify 80/20 Rule E.g., Walking
Add up non-value vs. value activities
Does number of non-value activities approximate 80%?
#NVA‘s:_____

4) Categorize Non-Value Areas

Group Common Activities
Record, Look up, Walk, etc...
Inputs/Outputs #NVA‘s:_____
Calculate Time/Category

5) Prioritize Non-Value Areas

Rank Order ―biggest‖ time wasters by # of NVA’s
#NVA‘s:_____


DMADV

Design Optimal Process
using DMADV

Version 1.2

Change Management
A

L
E Risk
Assessment
A yes

Analysis
Value
N Cause
Root
Customer
no
Achieved
New Process
no
or Product
no
yes
D
M BHAG
A
QFD Verify
V
1

DMADV

Objective: Perfecting the process so that we don’t have to
do DMAIC/ DMADDD!

• Focuses on creating new processes

• Or, creating a significantly new level of performance


DSS Methodologies

DMAIC
Variation & Defect

Lean
& Speed

DMADV
Process in process


DMADV Phases and Tools

Define
Business Case, Team Charter, Stakeholder Analysis,
VOC, CCR's, CTQ's, BHAG‟s

Measure
Measurement Plan, Operational Definitions, QFD

Analyze
Paradigm Analysis, SOV Studies, CTQ Flow Down,
Initial Models & Ideal Designs

Design Solution Matrix, Optimized Design, DOE, Pilot Plan

Verify Verify Design, Document & Standardize, Prototype,
FMEA, Digitization


BHAG‘s
Big, Hairy Audacious Goals
Why? BHAG’s force you to create world-class processes

How?
1. Set a goal that will ―significantly‖ exceed current performance & industry
benchmarks

2. Ask, ―What goal will make us better than the best?‖

3. The goal should feel impossible! If it doesn’t, you’ll need to cut your stretch
goal in half.

Obstacles
* Perception that significant improvement is impossible
* Fear of not making the goal
* Risk averse people or culture


Paradigm Analysis
A paradigm is a set of assumptions (believed to be true) that may
significantly limit our view of what‘s possible and ultimately, our
performance.
1. Brainstorm Paradigms
1. What the customer wants Outputs

2. What you have to do Activities

3. Your resources Inputs

1. Identify Givens—things customer/company is unwilling to change

 16 data points
 Hard copy
 Customer isn‟t changing
 No automation

2. Eliminate "Can't‖
PERISH PARADIGMS!


Ideal Design Case
The Pendulum Swings
A group of construction specialists, attempting to reduce the cost of a new office building,
proposed replacing a 10-story spiral staircase for the atrium with a 10-story brass pendulum.
The architect was delighted. The owner was enthusiastic. Half a million dollars was saved!

This may give visions of executives sliding down the brass pole, but it really made perfect
sense. The function of the staircase was not to serve as a way to get from floor to floor. The
building had elevators to do that. The spiral staircase was merely an architectural feature to
convey an upsweeping dynamic vision to visitors.

The group realized that projecting an image was the key to the problem. They brainstormed
a variety of different ways to project such an image. In the end, they settled on the brass
pendulum, partly because of the money it would save.

A group less skilled at problem solving would have proposed ways to build the spiral
staircase more cheaply. This group got to the nub of the matter and focused on the
function of the staircase.

Groups need to manage their problem-solving and communication process to find the
pendulums, not cheapen the staircase.


Ideal Design
Ideal Design is a clean slate approach to process innovation that:
• Encourages ―visionary‖ thinking about best system
• Legitimizes ―letting go‖ of legacy system

Start with vision & design backwards
1) Redefine Outputs (Customers true needs)
• What needs are we really trying to meet?
• Forget about how we currently meet the need
• How else could we meet those needs?

2) Redesign Value Activities
• How else can these activities be done to achieve the result?
• Benchmark other companies & industries – How do the ―best of best‖ do it?

3) Re-evaluate Inputs
• What information is really needed?
• In what other form could you use or receive the inputs?

4) Experiment
• Ideal design is Iterative, so the more tests, the quicker the success!
• Retrain


Ideal Design
Baseline Test

Paradigms Ideal Designs

Output

• What are your paradigms about the current output?
• Brainstorm alternative output designs to achieve BHAG

Value Activity
• What is the last activity performed to produce output?
• What are your paradigms about this activity?
• Are there other ways to do this activity to achieve BHAG?

Input

• What are your paradigms about the current input?
• Are there other ways to use the input to achieve BHAG?


Successful Process Digitization
 Don’t digitize too soon! Have we done everything to improve this process
before automating?

 Have low cost web applications or re-usable solutions been considered?

 What tracking systems are needed to ensure process compliance & to
prevent ―workarounds‖?

 Have all supporting procedures & policies to perform the process been
revised or updated?

 Have supporting procedures & policies for the old process been eliminated?

 Does training exist in order to teach people the new process?

 Is there an acceptable ROI for digitizing this process? Can the applications
be re-used?


Directed
Innovation

Version 1.2

Where’s The Magic?
Status Quo
Park in the problem Fire = Invent, Ready, Aim
space

Manage Creativity like Get smart people in a room &
a project brainstorm

Identify & evaluate Subjective assessment of
importance of solutions to implement, patents
problems as well as
solutions
Vs. to file

Process facilitation role with Ad hoc inventors from
diverse, cross-functional same project
participant pool

More difficult problems &
radical solutions require more Narrow, incremental
participants and diverse ―inventions‖ from individual
ideators inventors lead to lower-value

86
patents


What is Directed Innovation?

• New Focus – Gnarly Problems, conflicts and tradeoffs generated from
contrasting today’s solutions with Ideal solution

• New Organization – Process Facilitator,SMEs: Critical & Free thinkers,
Convergent & Divergent thinkers, Inventor Mentors

• New Tools – Provocation, Problem Storming, Question Banking, TRiZ, Value
Analysis

• New Thinking – Creative Problem Solving vs. Brainstorming, Inventing,
Patenting

• New Technology – Provocation worksheets, Idea Sheets, Post-it Notes,
Chocolate, Mint & Cinnamon*

• New Applications – Patent drafting/Claims writing, Research Project Definition,
Marketing, Product Naming
* Stimulate the right side of brain


What can we expect from DI?
Performance
Improvement The Process Half–Life Effect
100%
Lean/DFSS/
DMADV/DI

DMAIC/DI
50%

20%
Low Hanging Fruit

Traditional Management

0% (Status Quo)

Crisis Crisis
-10%
3 6 9 12 months
Ray Stata, Sloan Management Review, 1989.


History

• Advanced Inventing
– Ad hoc brainstorming by project teams
– Infrequent Patent attorney participation
– Direct to patent filings


History
• Strategic Portfolio Development
– Focused on generating solutions & patents from new promising technology
– TRiZ used rarely to identify conflicts & tradeoffs in new technology
– Attorney = scribe
– SME = facilitator (sometimes)
– Project &/or technology team participation
– Participants vote on ideas to patent


History

• Directed Innovation
– Agnostic facilitator
– Provocation/Question Banking
– Diverse & cross-functional team
– Innovators = scribes-> Idea Sheets
– Problem Storming –> Post-its
– Chocolate, Cinnamon, Peppermint
– Competition
– Concept Evaluation by SMEs & Patent Attorney
– Prior Art searching/ Patcomm review
– Inventor Mentors
– Balanced left brain vs. right brain activities


The ―Define‖ Phase Is Critical
90% of innovation initiatives fail due to:
Project Selection Lack of alignment between business & IP Strategy
Long time to obtain (3-4 yrs) & leverage (8 yrs.) IP
No budget allocation to future problems (AnTRIZipation)

Team Charter
No concise & shared problem statements
Not staffed with the right people or enough planning
Stakeholder Key stakeholders risk averse
Analysis Key stakeholders invent themselves

Risk
Assessment Starting projects with no understanding of IP Landscape
Ignoring early red flags – litigiousness of competitors

Customer Lack understanding of variety of customers’ perspectives
Requirements & issues/problems – FUNCTIONAL perspective lacking


Treat Your Inventing session like a
PROJECT and MANAGE it!

1.0
PLAN

4.0 2.0
ACT DO

3.0
CHECK


Directed Innovation Methods Overview
 Use for understanding all the problems to be solved in
Provocation /
Problem Storming order to implement the Ideal Solution

 Use for engaging diverse population in creative
Question problem solving to generate more and better solutions
Banking

Use for effectively capturing all solutions potentially
Ideation applicable in this problem domain or closely-related
ones

Concept  Use for determining most feasible, revenue-producing
Evaluation solutions

 Use problem statements to generate specification and
Disclosure /
Claims Drafting all solutions to generate independent and dependent
claims of patent application

PLAN
• Select Inventing team
 Subject Matter Experts (SMEs) in Technology Domain

 Identify/select team members
• critical thinkers (problem-oriented)
• divergent thinkers (creatives)

 Facilitator (see IAF Handbook of Group Facilitation)
• process observer
• objectivity
• no emotional connectivity to outcome


• Problem Storming (w/ critical thinkers) PLAN
– Describe and list all attributes of Ideal Solution(s)
• see TRiZ @ http://www.triz-journal.com

– Identify known solutions X and current patents Y
• Describe characteristics and parameters of X and Y and why they are
insufficient: CRITICAL CHALLENGES
• 39 Parameters Matrix (http://triz40.com/) & 40 Inventive Principles

– Once have Critical Challenges, transform these problem
statements to thought-provoking questions to inspire radical
thinking
• Generate an open-ended question in the form of "How might we
achieve the IDEAL attribute by applying X or Y technology or solution
without introducing a limiting characteristic (parameter) of X or Y
technologies or solutions?‖

*The format of the problem statements and related open-ended thought-provoking
questions is key to successful results


Issue Statement – DI Prework

• Reframe original problem statement as several different
open-ended, thought-provoking, generic questions that
can engage diverse set of creative problem solvers &
generate portfolio of alternative solutions

• Break Ideation into several 1- 1.5 hour sessions focusing
on one problem/question within the domain for 15-30
minutes each

• Keeps team focused!
– Fast-paced
– Rotate partners
– Idea Sheet generation competitive


Digital Six Sigma integration with Directed Innovation for Generation of High-Quality Solutions

Digital Six Sigma integration with Directed Innovation for Generation of High-Quality Solutions

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