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Greenbelt Training

1

Historically, Quality has been defined as Meeting the Specifications Fitness for Use

Meeting the Customers Requirements

NO !

3

The most noticeable difference in this operational definition of Quality is that it requires CONTINUOUS IMPROVEMENT

WHY CHANGE ?

The reason is simple, to remain or become competitive and thereby increase Profitability and Market Share

If the likelihood of detecting the defect is 70% and we have 10 consecutive inspectors with this level of capability, we would expect about 6 escaping defects out of every 1,000,000 defects produced.

1,000,000 ppm

6 ppm

3.4 ppm

1 Sigma - 68% 2 Sigma - 95% 3 Sigma - 99.73 %

S (X X)2 n

1

Upper Specification Limit (USL) Target Specification (T) Lower Specification Limit (LSL) Mean of the distribution (m) Standard Deviation of the distribution (s)

p(d) USL

Before A 3 process because 3 standard deviations fit between target and spec

Target Customer Specification

1 2 3

Target

Customer Specification

After

1 2 3 4 5 6

No Defects!

6 !

Continuous Improvement of Processes

Defect Prevention through the use of Statistical tools as opposed to Defect Detection through inspection.

10

Focus and commitment to quality must be driven by top leadership Leadership must be fully engaged and accountable for success Six Sigma provides classical problem solving tools enhanced with a fundamental knowledge of statistics and variation

Leadership Process

Focus is on statistical process capability and process variation analysis Products must be designed to be manufactured within process capability Process capability must be quantified

Tools Metrics

Goal is defect free products and processes Focus is on true capability (rolled throughput yield) rather than end of line yield All decisions must be data driven

11

99% Good (3.8 Sigma)

20,000 lost articles of mail per hour Unsafe drinking water for almost 15 minutes each day 5,000 incorrect surgical operations per week Two short or long landings at most major airports each day 200,000 wrong drug prescriptions each year No electricity for almost seven hours each month

Seven articles lost per hour One unsafe minute every seven months 1.7 incorrect operations per week One short or long landing every five years 68 wrong prescriptions per year One hour without electricity every 34 years

12

Top Line Growth - satisfied customers are repeat customers

13

Industry Overview

The Six Sigma Define-Measure-Analyze-Improve-Control (DMAIC) model consistently yields rapid, measurable, benefits Avery Dennison Results:

Implemented 6s in March, 1998. 52 completed projects Forecast 99 savings = $18,500,000 Actual savings (through 2Q)=$5,800,000 130 projects planned or in progress Annualized savings = $35M 99 impact = $12.3M

AlliedSignal Results:

Implemented 6 in 1994 for Operations. Initial 4 months, 600 projects reduced defects by 68%. Saved $175M at bottom line in 95; $500M in 98 ! (not including overhead, inventory, indirect charges, or avoidance. Over $2B in savings realized since 1992. Fastest rate for implementing 6 yet!

GE Results:

Implemented 6 efforts in late 1995. Targets savings over $10 B during next few years by reducing its current COPQ ($7B /yr.) to less than $1B annually by: - Reducing scrap parts. - Reducing reworked parts. - Rectifying transaction mistakes.

Motorola Results:

Implemented 6 program in 1987 when it was performing at a 4 level. By 1992 it averaged a 5.21 level. Sales productivity increased from $68.9K to $110.1K per employee and savings due to US operations improvements were over $2.2 Billion.

14

Cost Opportunity

Cost of Failure (% Revenue)

3.4

Sigma

233 5

6210 4 3

66,807 2

308,537 1

691,462

15

Six Sigma Cost and Benefits

2500 2000 1500

2000 Cost Benefits Net 1500 1050

1450

$ Million

1000 500

0 1996 -500

200 380 170 -30

550

1997

1998

1999

16

Up front investment and staying power Significant impact on the bottom line

Traditional Quality Costs

(Easily Identified) Inspection Warranty Rejects

(tangible)

Scrap Rework

1.5 % COQ

(Difficult to measure)

(intangible)

Long cycle times Field Modifications More Setups Expediting costs Customer Productivity Loss Engineering change orders

15 % COQ

Lost Opportunity

17

Distribution Shifted 1.5s

Defects Per Million Opportunities

3

4

5

6

18

Process Capability

Sweet Fruit

Design for Manufacturability 5 s Wall - Must Address Designs

Bulk of Fruit

Process Characterization and Optimization

----------------------------------

Seven Basic Tools

----------------------------------

Ground Fruit

Logic and Intuition

19

Practical Problem

Rejects for bad estimation of cost =20% average

Statistical Problem

DOE Results: - Technology - Labour rate - Interaction

Statistical Solution

Practical Solution

20

Install standard measurement system for each technology Reward & recognition policy to retain experienced labours in order to increase productivity

Y

Y Dependent Output Effect Symptom Monitor

f(X)

X1 . . . Xn Independent Input-Process Cause Problem Control

21

Would you control shooter or target to get the Gold Medal at Olympics

Y

OUTPUT SIGNAL

(x)

IN-PROCESS PARAMETERS

RELATIONSHIP or EQUATION THAT EXPLAINS Y IN TERMS OF X Distance traveled Money to Spend Determined by Car speed, traveling time Income, Commitments, Credit Rating

Determined by

22

Y

OUTPUT SIGNAL

(x)

IN-PROCESS PARAMETERS

RELATIONSHIP or EQUATION THAT EXPLAINS Y IN TERMS OF X Distance traveled Determined by Car speed, Car Speed traveling time Amount of wear on brakes Selection of CDs available Amount of gas in the tank Time since last service Traveling time Number of passengers Weather Car inside temperature

Understanding the 23

F (x)S

Y

OUTPUT SIGNAL,

=

Y

F

UNDERSTANDING OF

(x)

SELECT IMPORTANT

F (x)S

VERIFY UNDERSTANDING

OF

24

Y

OUTPUT SIGNAL,

=

POOR OR NO

F

UNDERSTANDING OF

(x)

BRAINSTORM

F (x)S

Y

NO CORRELATION

Model

Y

Capturing the measurement on a Customer unit basis

=

Understanding our output as the Customer sees it

(x)

F

26

27

Cost of Quality

Sigma Level 2 3 4 Defects/Million Opportunities 308,000 66,800 ($12b) Cost of Quality Not Competitive 25 - 40% of Sales 15 - 25% of Sales

3.4($0.3b) World Class

5 6

28

SPAN

Order-to-Delivery Time vs Customer Want Date

40 Day Span

5% of orders are >15 days early to request 5% of orders are >25 days late to request

-15 days

Early

0

Customer Want Date On Time

+25 days

Late

29

Average River Depth - 4ft

30

Outside In Thinking

Delivery cycle time (days)

What WE see

Baseline

12 24 13 7 16 8 20 25 14 10 11 30 16 Mean 15.8 Std Dev 7.0

Improved?

27 7 15 4 18 6 23 6 2 24 2 6 5 11.2 9.0

Using mean-based thinking, we improve average performance by 29%, and we break out the champagne ... But our customer only feels the variance and cancels the next order!

31

Customers View How did [Company Name] influence my

A C Performance?

Missing data during download

Customer Process

A B C

Missing data during logical execution

32

... Can Be Applied To Every Business Function

Business Development HR Operations Training

CRT

6 Sigma

Methods Finance Admin / Transport Projects Quality

IT

33

Why Now?

Customers & Competitors are adopting elements of this business improvement process:

Customers:

HP Intuit

Competitors:

Wipro Spectramind EXL Hughes

34

Table of Contents

Six Sigma Overview

What is Six Sigma Overview of Scope Linkage to Vision

Pre-Tea

Roles and Responsibilities as Leaders/ Sponsor Criteria for Project Selection Criteria for BB/GB Selection Introduction to Process

35

Implementation Strategy

Train. Apply.. Review..

Every Participant arrives to training with a well defined project with measurable savings opportunities!

Integrate training with metrics performance to maximize the bottom line impact. 36

Define Measure Analyze Improve

Management

Leadership Black Belt

Process Owner

Control

37

1. 2. 3. 4. 5. 6. 7. 8. 9. Lead the Six Sigma efforts overall in their BU Provide Strategic Direction for Six Sigma Project teams Track the Projects Progress, Offer rewards as appropriate Help the Black Belt / Green Belt overcome roadblocks, including seeking collaboration Help find resources for the team as Needed, Allocate resources when authorized Keep Black Belt / Green Belt focused on desired results When immovable objects block the road, Redirect Project / Team activities Serve as the Teams Champion from Top-To-Bottom of Entire Business Ensure that Project Solutions are well implemented, Gains are sustained and on-going responsibility transfers to Process Owner

38

Champion/Sponsor/Functional Leader

The Champion Or Sponsor Is The Person(s) Who Is Accountable For And Sanctions A Six Sigma Project. The Champion Or Sponsor Is Involved In Project Team Chartering, Reviews Progress, Helps Remove Organizational Barriers To Project Success, And Is Often The Decision-Maker For Approval Of Final Recommendations

Full-Time Positions Dedicated To Supporting Six Sigma Efforts. Expert Resources To Black Belts And Teams On The Six Sigma Tools And Techniques Coach And Assist Black Belts And Team Members. Train The Black Belts, Champions, And Employees As Needed.

Full-time position where the Black Belt Is Accountable, Usually To The Champion, For The Project / Team Results. The Black Belt Is Responsible For The Project / Teams Progress, Provides Leadership In Planning The Project / Teams Work, Applies Six Sigma Tools And Teaches Team Members How To Apply Them, Often Leads Team Meetings, And Ensures That Decisions Are Made By The Team In A Timely Manner To Meet Its Goals

Part-time position where the Green Belt Is Accountable, Usually To The Champion, For The Project / Team Results. The Green Belt Is Responsible For The Project / Teams Progress, Provides Leadership In Planning The Project / Teams Work, Applies Six Sigma Tools And Teaches Team Members How To Apply Them, Often Leads Team Meetings, And Ensures That Decisions Are Made By The Team In A Timely Manner To Meet Its Goals

Team Members

Team Members Are The Individuals Who Comprise The Six Sigma Project Team. Team Members Are Individually And Collectively Accountable For Specific Tasks That Will Result In The Teams Final Recommendation. When Team Members Are Responsible For A Particular Aspect Of A Project, They Often Will Make Their Own Decisions

39

Six Sigma Steering Committee - BQC

Assures [Company Name]s Six Sigma implementation plan: Has appropriate resources allocated Has appropriate scope and is involving all required elements of the organization Is consistent with [Company Name]s culture of Exceeding customer expectation Develop a communication plan to energize the organization around the Six Sigma implementation. Remove roadblocks to facilitate implementation. Review the status of training / project implementation on a regular basis. Establish [Company Name]s business metrics and goals, assess progress towards goals, analyze strengths and weaknesses of implementation, and provide strategic direction as necessary. Verify the financial (as calculated by Finance) impact of projects implemented. Provide a forum to share best practices within the organization.

40

Table of Contents

Six Sigma Overview

What is Six Sigma Overview of Scope Linkage to Vision

Pre-Tea

Roles and Responsibilities as Leaders/ Sponsor Criteria for Project Selection Criteria for BB/GB Selection Introduction to Process

41

Customer Focus

1. 2. 3. 4. Measure the same as the customer does Determine your capability as the customer sees it Understand the variance in the output signal Find the in-process keys to impact the customer

42

Customer Focus

What I Want to be

What I Am (?)

What I Am(?)

What I Am(?)

Performance Continuum

43

Project Selection

Objective:

Need: 2. Why is the project worth doing? 3. Is the project tied to a high importance customer CTQ? 4. What are the consequences of not doing this project? 5. How would it fit with business initiatives and targets? Scope: 6. Is the scope reasonable? Can the problem be effectively broken apart into projects with reasonable scope? Expectations: 7. Is there a clear owner in the organization for the problem and for the benefits of improving? 8. What specific goals would project be trying to achieve? What would constitute stretch results?

44

Project Objectives

What exactly is the problem being addressed in measurable terms? PROBLEM The problem this project is going to solve is:

- Takes too long to submit the quotation to customer - The productivity is very poor in our company - There is too much documentation in our work

- Improve time of submission of quotation from the time enquiry comes from customer

- Improve productivity by 15 % - Reduce the paperwork by 20%

45

Who are your customers? What do you provide your customers? What is critical to quality for your customers? What are your internal processes for providing your product or service to customers? What CTQ is this project addressing?

46

Project Need

Why is this project worth doing?

Customer

[Company Name]

Customer

[Company Name]

Customer 47

[Company Name]

Project Need

Write down threat and opportunity for short term and long term for the problem you are addressing in your project

Threat Short Term Opportunity

1 2

Long Term

3 4

48

Expectations

What specific goals must be met? When must they be met?

For each goal, what milestones are critical and must be met?

49

Project Scoping

50

Project Scoping

Why? High level problem Level A Initial Contributor Level B

Why? Why? Secondary Contributor Level C Why? Project Level Level D

When you can no longer answer the Why? with confidence, you have arrived at the project level.

51

Project Scoping

Why?

AHT too high

Why?

AHT for Pavilion P.L. is too high

Why?

AHT for Team 11 is too high AHT for New Agents is too high

Level A Level B

Why?

Level C

Level D Our project then becomes in measurable terms: Improving the AHT for New Batches from 30 min. to 20 min.

52

Project Scoping

What must this project accomplish? What (if anything) is out of bounds for the team?

53

Business Acumen Project and Process Management Data Affinity

Result Orientation

Relationship Building and Influence Coaching and Mentoring Team Leadership Change Leadership

54

Receive 5 days training Understand the statistical tools and practice them Work on the project

Close the project

55

Table of Contents

Six Sigma Overview

What is Six Sigma Overview of Scope Linkage to Vision

Pre-Tea

Roles and Responsibilities as Leaders/ Sponsor Criteria for Project Selection Criteria for BB/GB Selection Introduction to Process

56

DEFINE

IDENTIFY

NO

PROCESS ?

YES

MEASURE

ANALYSE

DESIGN

NO

CAPABLE ?

YES

OPTIMISE

IMPROVE

VALIDATE

CONTROL

57

DMAIC Process

Define the project (Y) & make the team & plan Measure Y & Xs Whats wrong with Xs How much and what I can improve

Control

Sustain the improvement

Define

Measure

Analyze

Improve

PLAN

58

DO

Project Scoping SIPOC Thought Process Mapping Quality Metrices Process Mapping C&E matrix FMEA MSA Concepts of DOE DOE Strategies & Analysis DOE Control Strategies 59

Measurement Purpose

Document Process Map

Establish Measurement Capabilities Establish Baseline Process Capabilities

60

Process Map C&E Matrix and FMEA Multi-Vari Studies 8 - 10 Experimentation Control Plans / SPC

Screened List Found Critical Xs Controlling Critical Xs

4-8

3-6

Optimized Process 61

Input Measures Process Measures

Measures That Are Internal To Your Process. They Include Quality And Delivery Measures Important To Your Internal Customers As Well As Waste And Cycle Time Measures. They Are Correlated To The Pertinent Output Measures.

Output Measures

Output Measures Are Measures Used To Determine How Well Customer Needs And Requirements Are Met.

62

Develop A Picture Of The Working Process As A Team

Suppliers

Inputs Start

Process

Outputs

Customers

Requirement

64

START Boundary

Boundary

Input

What Must My Suppliers Provide My Process To Meet My Needs?

Process

Output

How Can I Assure That My Process Output Meets The Needs Of My Customer?

65

Process Map

[Company Name]

What You Think It Is... What It Really Is... What It Should Be... What It Could Be...

66

Industry Overview

Traditional View

Final Test

The Hidden Factory RTY is the probability that a product will pass through the entire process without rework and without any defects. It is the true yield for a product at the completion of all the individual processes.

Develop A Better Understanding of Your Operations

If this is your process, where do you put your key resources ? A B

0.90 $10 / Unit 500 un/dy

C

0.90

$ 5 / Unit 400 un/dy

D

0.583 $19 200 un

RTY

COPQ Capacity 68

0.80

$2 / Unit 700 un/dy

Project Prioritization

A

0.80

$2 / Unit 700 un/dy

B

0.90

$10 / Unit 500 un/dy

C

0.90

$ 5 / Unit 400 un/dy

D

0.583 $19 200 un

0.90

$2 /Unit 200 un/dy

Project # A 69

Project # B

Project # C

Role of Statistics

Can you always measure 100% or less

What is Population what is sample? Roll of statistics in measurement (descriptive / Inference) 1. We only use experience, not data. 2. We collect data, but just look at the numbers. 3. We group the data so as to form charts and graphs. 4. We use census data with descriptive statistics. 5. We use sample data with descriptive statistics. 6. We use sample data with inferential statistics.

70

Basic Statistics

Types of data Measures of the Center of the data Mean Median Mode Measures of the Spread of Data Range Variance Standard Deviation Normal Distribution and Normal Probabilities

71

Mean: Arithmetic average of a set of values Reflects the influence of all values Strongly Influenced by extreme values

x xi n

i 1

Median: Reflects the 50% rank - the center number after a set of numbers has been sorted from low to high. Does not include all values in calculation Is robust to extreme scores The mean and median will be affected by the nature of the distribution of numbers Mode - Most Common Observation Why would we use the mean instead of the median in process Improvement?

72

Different Distributions

Sketch in the Means and Medians on each Distribution.

Comparison of Distributions.

300

300

Comparison of Distributions.

Frequency

Frequency

200

200

100

Tail

0 10 20 30 40 50 60 70 80

100

Tail

60 70 80 90 100 110 120 130

C2

C3

Negative Skew

Positive Skew

Comparison of Distributions.

100

Frequency

50

0 20 30 40 50 60 70 80 90 100 110

C1

Symmetric Distribution

73

Examples of POPULATION: Entire India Average Literacy rate Examples of SAMPLE:

500 people randomly selected

m = Population Mean

X ^

= Sample Mean

74

Computational Equations

Population Mean

m =

X

i 1

=S=

(Xi m ) 2

i=1

Sample Mean

^ m =x=

N

x

i =1

n

i --

^ = s=

(X

i =1

X )2

n -1

Measures of Variability

Range: the distance between the extreme values of a data set. (Highest - Lowest) Variance ( ): the Average Squared Deviation of each data point from the Mean. Standard Deviation ( ): the Square Root of the Variance. The range is more sensitive to outliers than the variance.

76

X

1 2 3 4 5 6 7 8 9 10 S Mean square 2 1 3 5 4

X - X (X - X) 2

Variance

(X i X ) 2

i=1

N -1

(X

i=1

X )2

Sum

N -1

Standard Deviation

77

1.581139

Types of Data

Attribute / Discrete Data (Qualitative) Categories Yes, No Go, No go Operator 1, Operator 2, Operator 3 Pass / Fail Variable / Continuous Data (Quantitative) Decimal subdivisions are meaningful Time, Pressure, Conveyor Speed

78

Variation

While every process displays Variation, some processes display controlled variation, while other processes display uncontrolled variation (Walter Shewhart). Controlled Variation is characterized by a stable and consistent pattern of variation over time. Associated with Common Causes. Uncontrolled Variation is characterized by variation that changes over time. Associated with Special Causes.

X- B a r C h art fo r P r o c e s s A

UCL=77.20 80

X - B a r C h a r t fo r P r o c e s s B

UCL =7 7.27 X =7 0.98 L CL =6 4 .7 0 60

Sample Mean

75

Sample Mean

70

X =70.91

70

65 0 5 10 15 20 25

LCL=64.62 50 0 5 10 15 20 25

Sa mp le Nu mbe r

S a mp le Nu mb e r

79

Special Causes

Stratification

Customer Type

Geography

Etc.

Company Process

ALL DATA

n = 2000 0 (-11, 38) 49 Sample Size , Median (Min, Max) SPAN

The most powerful potential process labels are those that are known at the beginning of the process.

80

Stratification

ALL DATA

n = 2000 0 (-11, 38) 49

Dashboard

n = 899 -2 (-9, 21) 30

Non-Dashboard

n = 1101 1 (-12, 70) 82

North

n = 261 -2 (-8, 8) 16

South

n = 297 -2 (-10, 24) 34

East

n = 103 -1 (-8, 15) 23

West

n = 238 -1 (-8, 23) 32

Commercial

n = 119 -2 (-10, 5) 15

Government

n = 74 -2 (-8, 9) 17

Industrial

n = 68 -2 (-7, 40) 47

Credit A

n = 71 -3 (-10, 0) 10

Credit B

n = 41 0 (-7, 6) 13

Credit C

n=7 5 (-8, 31) 39

81

Stratification

Key Learning Points:

The first thing you must do is Separate the Processes. We call this Stratification. If you dont Stratify (isolate) the processes, you will have more than one central tendency in the data set and you will never figure out what drives variance.

If you think you have found the right label to stratify the processes, make sure you double check it to see if there is another label that is influencing the way the data appears. In this case, the real process label was Credit Rating, but it appeared in the Dashboard/Non-Dashboard data. You can double check by cross-cutting the data (look at Credit Rating and Dashboard at the same time in a tabular format), or by continuing to segment to see if the central tendency indicator still moves even though we thought it was an isolated process. In this case, if you continue with Dashboard as an isolated process, you will see the median move for various segmentations (especially Credit Rating). Once you have Stratified (isolated the processes) and you have a segment that reflects several different levels of Variance, you have the first clues to find the critical xs that drive variance. When you find a critical x for one of the processes, check to see if it is also the critical x for the other processes. Often the factors that drive variance in one of the processes, also drive it in another.

82

FMEA Model

Prevention

What made failure mode to take place. Ask 5 Whys.

Detection

Detection

What manner my process was not able to obey me

Cause

Material or process input

Process Step

Effect

External customer or downstream process step.

Controls

83

A measurement system will not willingly disclose the type of distortion, inaccuracy or imprecision it is transmitting to our data. We must actively force it to reveal its hidden effects.

84

Parts (Example) Inputs Process Outputs Inputs Measurement Process Outputs Observations Measurements Data

Product Variability

(Actual variability)

Measurement Variability

Total Variability

(Observed variability)

2 Actual(Part)

2 Meas.System

2 Observed (Total)

85

LSL USL Short-Term Capability

Long-Term Capability

86

Within Group

Called short term (st) Our potential - the best we can be

Time 1 Time 2 Time 3 Time 4

st + shift = total

Between Groups

Called shift (truly a measurement in sigma's of how far the mean has shifted) Indicates our process control The vital few

87

Analyse Purpose

To reduce the number of Process Input Variables to a manageable number To determine high risk inputs from Failure Modes and Effects analysis To determine the presence of and eliminate Noise Variables through Multi-vari Studies To plan the first improvement activities

88

Sources of Variation

A common method of analysis at this stage is the variables tree. Try thinking about your process in this manner........

Not resolved the call

Skill to Skill

Agent to Agent

Call to Call

Customer to Customer

Type of call

89

Tools Used..

Time Series Plot

15

Scatter Plot

15

HrsVar

10

HrsVar

5 10

10

0 Index

Date

Main Effects Plot - Means for HrsVar

13. 0 10. 5

HrsVar

8. 0

5. 5

3. 0 D at e Cu s t o m er Sal es m an

Box Plot

15

1000

Pareto Chart

Pareto Chart for : Defects

100 80 900 800 700 600 500 400 300 200 100 20 40 60

r a H sV r

10 5 0 W ater U t il

Count

0

. ev tD i gh We rB Ai bl e ub l or Co f or De n t io ma

C u s to m e r

Min in g

Pa p e r

Defect

Count Percent Cum %

1 32 1 3.5 87.7

1 20 1 2.3 1 00.0

90

Percent

Regression..

Some examples:

Y=Gas Mileage 30 (mpg)

20 10

Y=Sons Height

80 60 40

80 60 40

(Thousands) 35

25 5

6 14 22 30 X=Age of Car

91

Regression..

How do you find a line that fits the data?

What we are looking for is a line which will minimize the distances from the plotted points to the line....

Deviations (distances) How much the line missed by

* * * *

Regression Line

* * * * * *

Input Variable (X)

92

Regression..

The R2 Statistic is defined as the sum of squares of errors divided by sum of the square of difference from average:

Y

Measured Error Measured Predicted

Y=a+bX

r 1

2

^ (yi yi )

(y y )

i 1 i

i 1 n

93

Improve

What will you do for Improve

Identify solutions. Develop change management plan. Conduct cost / benefit analysis. Create implementation plan.

94

Improve

What will you do for Control

Document procedures.

95

Control

In the physical world, the law of entropy explains the gradual loss of order in a system. The same law applies to business processes. Unless we add energy (in the form of documentation and ongoing process controls); processes will tend to degrade overtime, losing the gains achieved by design and improvement activities. The quality plan is the structure through which we add this energy to business processes.

Target

96

Control

Three Main Control Mechanism..

Avoid Potential Problems Control Potential Problems

Mistake Proofing 97

Project Sign-off

Answer the following questions before the project is signed off:

What can go wrong and derail improvements ? What controls are in place ? Can you show me your closure plan ? What happen when the people change ?

Is all documentation completed ? Is the savings verified by finance ?

98

Project Sign-off

Finalize Financial Results

Calculate tangible benefits

Calculate net financial gain Calculate the intangible benefits e.g. cost avoidance, customer retention

Tangible Benefits - Implementation Costs = Net Financial gains (Over one financial year)

Bank

99

Documentation

Complete Documentation Package

..Compile and organize a record of the key aspects of your six sigma project

A description of the project Problem statement & business case A list of CTQs + Xs

Hypothesis tests

Process capability analysis Control parameters Audit Plan/ owner Financial results Operational metrics Lessons learned and best practices Project to be signed off by GB/BB, MBB, Financial controller, Process Owner, Champion.

100

?...

101

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