Design for Innovation Workbook

Contents
Page
1. Introduction: DMADV Improvement of a minimally complex process………………………………………………….. 2
2. Example: DMADV for Development of a Learning Outcomes Assessment Program at Texas A&M........
3
3. DMADV Case Study: Can you help this experience industry organization recapture market share?..…... 7
4. Want to learn more? …………………………………………………………………………………………………………………………….. 12
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Introduction: DMADV Improvement of a minimally complex process
Phase
Define
Description
Establish a precise definition of the
problem. Specify the purpose and
goals, develop schedule and
guidelines, analyze risk
Measure Determine “customers” and the
specific needs of each.
Example
Problem: Our office made four errors in processing 102 offer letters to graduate assistants during FY 2010.
These errors cost us $6,500 in penalties and 9 hours of re-work.
SMART Goal(Specific, Measureable, Attainable, Realistic, Time-bound): To design a process that eliminates
penalties and rework while also meeting requirements of customers ( Office of Graduate and Professional
Studies, Dean of Faculties, payroll, graduate students we hire, and advisors of the students we hire) by
September 1 of 2011.
Determine “Voice of the Customers” (specifications)
What are the needs of the Office of Graduate Studies and Professional Studies, Payroll, Graduate Students,
advisors? Procedures will include informal interviews or “member checks” with key informants.
(For large projects innovators may use surveys, focus groups, “going to the gemba,” observation, and other
approaches.)
Analyze
Develop and evaluate design
options
Option A: Implement new procedure requiring that each offer letter be reviewed by our graduate program
specialist and a designated business office employee before distribution
Option B: Design a master spreadsheet that includes all necessary details and contingencies. Use that
spreadsheet as the data for a macro that writes offer letters. Establish new procedure in which graduate
program coordinator and business office employee review the data in the spreadsheet before producing and
distributing the letters.
Design
Develop a detailed components
and processes, optimize the design
Develop the spreadsheet and macro. Document each feature that is intended to meet the specifications
identified in the “Measure” phase. Train staff in its use. Beta test the innovation. Improve based on results.
Verify
Implement the program and
evaluate its efficiency and efficacy
Implement the new process. Continuous quality improvement through consultation with internal and external
customers every cycle for the first year and annually thereafter.
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Example: DMADV for Development of a Learning Outcomes Assessment Program at Texas A&M
Team Name: __Team Ellis!_________________________________________________________________________
Define
Problem
Failure to develop and implement a learning outcomes assessment program including a written assessment
plan, measures of outcome variables, collect, and analyze data by June of 2010 will result in our department
being out of compliance with standards for both professional and regional accreditation. We risk severe
sanctions from the University and loss of professional accreditation.
SMART Goal
To develop and fully implement a learning outcomes assessment program that meets the requirements of Texas A&M
University and the COAPRT by June of 2010. That program will include a written assessment plan, instrumentation for
assessment of learning outcomes (two direct measures and one indirect measure), data from the first year of
implementation, a report of assessment results, and a record of results in the University’s electronic data base,
WEAVEonline.
Measure
“Customer” Group
1. Faculty Members
Method of Listening to Voice
Assessment Task Force Discussion
2. Students
Focus Groups
3. University Administration
Individual consultation with Assessment Office Representative
4. Council on Accreditation
Consultation with Board Member
5. Professionals
Advisory Committees and Intern Supervisors
Specifications, “Our innovation must have the following characteristics:”
1. Must be cost-efficient in data acquisition and analysis
2. Must yield tangible curriculum quality improvement benefits that are commensurate with costs
3. Must be minimally intrusive on the right of faculty to design and implement preferred approaches to
curriculum and instruction that they believe are bet for their students.
4. Must be compelling to accrediting bodies (COAPRT and SACS) and to the University.
5. Must not violate the criterion of consequential evidence of validity.
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Design
The design phase of our project involved conceptualizing learning outcomes as a process, constructing the
tests and exit questionnaire, and writing an assessment plan. The result of conceptualizing learning
outcomes as a process is depicted in Figure 1.
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Verify
How will you confirm the effectiveness of your innovation? How will you measure its effectiveness and
acceptability?
The DMADV verify phase involves implementation of the program and evaluation of its effectiveness and
efficiency. That process is ongoing. One indicator of the success of the program was successful
reaccreditation by COAPRT. In the next year, our assessment program was judged to be in compliance with
University (and SACS) expectations. During Academic Year 2013, our assessment program was highlighted
as an outstanding strength in the final summary of our seven-year Academic Program Review. Our
assessment program was, in fact, described as “among the best we have seen” in the final document
forwarded to the State of Texas Higher Education Coordinating Board. (We should complete an evaluation
that includes all customer groups)
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DMADV Case Study: Can You help this experience industry organization recapture market share?
IMPORTANT NOTE: This case study includes both fact and fiction. The case is an invitation to engage your
creative energies toward crafting an innovation to address loss of market share (new memberships and
renewals) in an increasingly competitive fitness market. The experience industry organization setting for
the case is very real. That setting is College Station’s AggieLand Fitness Dome
(http://www.aggielandfitness.com/membership/our-facilities ). The situation described in the case,
though, is fictional. The case describes entry of new competitors into the College Station fitness industry
which is, in fact, occurring. But the population of College Station is also growing, so the scenario of
escalating competition for a market of a rather stable and fixed size is fictional. Trend data are fictional.
Descriptions of strategy and concerns of owners and managers are also purely fictional.
So, here is the case! Due to your extensive and rigorous training in use of the Lean Six Sigma DMADV
strategy (i.e., this 90-minute session at TRAPS!), we (participants in our session) have been asked to serve
as consultants to AggieLand Fitness Dome. After a period of individual work, we will divide into teams of 34 consultants. Each team will use DMADV to design an innovation that will result in AggieLand Fitness
dome regaining its “market share” (memberships) in an increasingly competitive fitness market. Each team
will record its work on the following worksheets. At the end of our extensive and exhaustive planning
period (about 30 minutes), we will share our innovations and select the approach that we will recommend
to our client.
Facts
AggieLand Fitness Dome is a 25,400 square foot fitness center located along Highway 6 in College Station.
The facility, which is “Aggie owned and locally operated,” opened in January of 2004. A summary of
facilities, equipment, and programs follows.
Facilities
* Cardio-training area (elliptical machines, steppers,
treadmills, rowing machines)
* Extensive Free Weight Area, Benches, and Racks
* Extensive Exercise Machine Areas (virtually every
muscle group)
* Lounge
* Gymnasium
* Stairway to Nowhere
* Mind and Body Studio
* Cycling Studio
* Group Fitness Area
* Locker rooms with showers and saunas
* Child Care
Programs
*Yoga
* Pilates
* Zumba (“Party yourself into shape!”)
* Boot-camps (indoor and outdoor)
* Power (barbell program)
* Kick (Martial arts and boxing)
* Core (athletic training),
* Active (movement to music),
* Step (high-intensity stepping),
* Cycling,
* Centergy (music, yoga, and pilates)
* Volleyball, basketball
* Personal training,
Among the many prominent elements of success of the AggieLand Fitness Dome are its personalized guest
service; its rigorous attention to maintaining a clean, attractive, and orderly environment; and its exciting
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programs strategically scheduled to meet the needs of the markets served. Staff members are
extraordinarily friendly and consistently show passion for people and active living.
Competition among providers of fitness services, however, is increasing. Last year, an innovative “Anytime
Fitness” facility opened within two miles of the AggieLand Fitness Dome. While much smaller in size, that
facility offers members access 24 hours per day, 365 days per year. Also, by February, 2014, a new Aerofit
Fitness Center will open. That facility is less than one mile from the AggieLand Fitness Dome. Owners of the
“Aerofit Center on Longmire” (locally owned and operated) assert
(http://aerofitclubs.com/aerofitwellnessonlongmire ):
Aerofit has given a lot of consideration to this much anticipated location. Unlike any other fitness center in the
Brazos Valley, the new Aerofit location will feature amenities that are not currently available in town. The new
facility will offer two indoor heated pools; one for lap swimming and the other for members needing warmer
water temperatures. Track your workouts and results from the cardio and weight machines. Equipment will even
know your personal preferences for entertainment, workouts, etc. The locker rooms will feature steam,
whirlpools and sitting areas just for you to relax. Group Exercise classes will be limited in size during peak
workout times to avoid overcrowding and Aerofit will feature semi-private classes that can be conducted on a
reservation basis.
Fiction
Now for the fiction. The author of this case study has absolutely no knowledge of the response, if any,
AggieLand Fitness Dome has to this new competition. Perhaps the markets served are very different, and
presence of new entrants into the fitness industry is having no impact on the success of the AggieLand
Fitness Dome, or perhaps the impact is, in fact, positive. The following content is fully contrived for the
purpose of this exercise. Please humor me.
Imagine that managers of the AggieLand Fitness Dome have noticed the effects of the increased
competition. With a February, 2014 opening date in place for Aerofit, they have witnessed a 12% drop in
renewals for memberships that expire in February. Compared to November, December, and January of
2012 and 2013, the number of new memberships for the same months of 2013 and 2014 has decreased 8%,
10%, and 14%, respectively. Workers also report increasing numbers of members talking about exciting
features of the new Aerofit facility and the teaser membership fees for the first six months. In brief,
imagine that the facility is losing members and is experiencing noticeably slower growth of new members.
Current target markets of the AggieLand Fitness Dome are (keep in mind that these are fictional!) are:
* Young adults, ages 18-28, motivated by desire for high levels of physical fitness
* Accomplished high school and college-age athletes seeking to maintain fitness for
performance in their sports,
* Middle-aged adults seeking increased flexibility, strength, weight loss, and weight control
* Retired professionals, seeking general health benefits,
* Young married men and women seeking social opportunities and health benefits with samesex co-participants.
Apart from the temporary “teaser” rates being offered by Aerofit, both AggieLand Fitness Center and
Aerofit have complex pricing structures, and pricing is not reasonable strategy for these two organizations
to compete.
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DMADV Case Study Instructions and Worksheet
Team Name: ______________________________________________________________
Define
Problem
SMART Goal
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Measure
“Customer” Group
Method of Hearing Voice
1.
2.
3.
4.
5.
Specifications, “Our innovation must have the following characteristics:”
1.
2.
3.
4.
5.
6.
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Analyze
Options
Option A: ____________________________________________________________
Option B: ____________________________________________________________
Which is our best option, per
specification? (√)
Specification
1.
Option A
Option B
2.
3.
4.
5.
6.
7.
8.
Other considerations:
Innovation to be developed (Circle one):
Option A
Option B
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Design
Briefly describe the innovation option you chose. How could you test and improve it before committing to
full implementation? (Use the back of this sheet if needed)
Verify
How will you confirm the effectiveness of your innovation? How will you measure its effectiveness and
acceptability?
Want to learn more? Select sources I particularly like:
George, M., Rowlands, D. , Price, M. & Maxey, J. (2005). The Lean Six Sigma Pocket Toolbook. New York:
McGraw-Hill.
Gygi, C., De Carlo, N. & Williams, B. (2005). Six Sigma for Dummies. New York: Wiley Publishing, Inc.
Pyzdeck, T. (2003). The Six Sigma Handbook. New York: McGraw-Hill.
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