Define Measure Analyze: Lean Six Sigma Training

Lean Six Sigma Training
Define
Measure
Analyze
Examples
six sigma project people selection.
Define: Why is there such a difference is the sales performance of people?
Measure: Top people have 10X volume of the bottom 25%. Failure to meet sales quotas is a defect.
Analyze: Education, training, time in job, product line, sales area, profiles.
Improve: Able to identify by profile 72% of the top sales people. Use this tool to select new people into this
function.
Control: Use profiles for new hires and continue to monitor performance levels.
six sigma project new capacity justified.

Define: Contract to deliver product at a minimum rate on a daily basis. Severe penalties if rate missed by even a small
amount. Customer "good will" also an issue.
Measure: Capacity of units in the system more than the minimum rates. Collected failure rate data for each unit
and time to repair.
Analyze: Failure rate data combined with the time to repair data indicated that there were significant periods of
time when the minimum contract rates could not be met and penalties would be paid.
Improve: Capital approved for an additional unit. Within the first year the new unit was required at least four
separate times for several weeks each time to meet the contract minimums. Any one of the four times returned
enough cash to pay for all of the capital expended.
Control: System to tract and monitor failure data and repair time data.
six sigma project web design.

Define: Design a web site that ranks in the top ten (10) on all major search engines and directories.
Measure: Enter "six sigma" and check ranking in search engines.
Analyze: URL name, title of pages, and other factors are major ranking criteria. Reciprocal links and other routine
activities aid in search engine ranking.
Improve: Purchase URL with six sigma included, optimize each page, develop reciprocal links, and perform other
regular activities required to maintain traffic and ranking.
Control: Monitor ranking on search engines weekly. You can check on the success of this project by entering "six
sigma" in the search field of your favorite search engine. Success is a link to http://www.adamssixsigma.com in
the top ten (10) listings. The titles and descriptions may vary , the URL link is the performance measure
Definitions
Term Definition
Customer Focus The concept that the customer is the only person qualified to specify what Quality means.
Process Excellence A set of techniques for ensuring that key processes are identified, owned, strategically aligned, and
continuously monitored and improved
DMC DMC is Define-Measure-Control methodology for implementing Process Excellence
DMAIC Data Driven strategy to Improve Processes, A quality initiative as part Six Sigma methodology ( Define ,
Measure , Analyze, Improve, Control)
LEAN Lean is a way to continuously eliminate waste
Kaizen Change for better through Continuous Improvement by Involvement of All
Waste Waste is anything that takes time , resources , or space but does not add to the value of the product or
service delivered to the customer
6 Types of Waste Defect , Motion , In- efficiency , Waiting , Over- Processing and Inventory
SIPOC SIPOC (suppliers, inputs, process, output, and customers) is a tool to define a process.
CTQ "Critical to Quality" requirements of a customer from a product or service
Kano Analysis Kano analysis is a technique used to prioritize customer requirements.
Process A Process Is A Collection Of Activities That Takes One Or More Inputs and creates output that is of Value to
the Customer
Continuous Data Data that can be measured on a continuum / scale ; and can be meaningfully subdivided into finer & finer
increments.
Discrete Data Data that is categorized into distinct buckets ; values can't be subdivided further meaningfully.
Performance Standard Customer expectation of performance on the CTQ's.
Defect Any event of failure to meet the performance standard
LSL Lower Specification Limit : the minimum value the customer is willing to tolerate on a metric.
USL Upper Specification Limit : the maximum value the customer is willing to tolerate on a metric.
Defective Any unit having one (or more) defects
Definitions
Term Definition
Cycle time Total time required to complete a process step(s)
TAT Total elapsed time ( Time Taken to Complete a Transaction or Activity)
Yield Yield is the percentage of a process output that is free of defects.
Unit A unit is any item/entity that is produced or processed.
Opportunity Opportunities are the measurable and distinct ways in which a defect can be created.
DPMO Defects per Million Opportunities
DPO Defects per Opportunity
DPU Defects per Unit
Sigma level The Greek letter (sigma) refers to the standard deviation of a population. Sigma level is a measure of Process
capability.
Process Capability Process capability refers to the ability of a process to produce a defect-free product or service.
Sampling Sampling is the practice of gathering a subset of the total data available from a process or a population.
Dashboard Tool used for Collecting & Reporting Information - Good dashboards are visual & graphic.
Histogram A graphic representation of variation in a set of continuous data.
Standard Deviation A statistic used to measure the variation in a distribution
Mean The mean is the average data point value within a data set.
Median The median is the middle point of a data set; 50% of the values are below this point, and 50% are above this point.
Normal Distribution The charting of a data set in which most of the data points are concentrated around the average (mean), thus
forming a bell shaped curve
Scatter plot A scatter plot is a basic graphic tool that illustrates the relationship between two variables.
Definitions
Term Definition
Scorecard A scorecard is an evaluation device, your customers will use to rate your business's performance in satisfying
their requirements.
Benchmarking Benchmarking is a continuous process whereby an enterprise measures and compares all its functions, systems
and practices against strong competitors, identifying quality gaps in the organization, and striving to achieve
competitive advantage locally and g
Entitlement As good as a process can get without Re-design

Variation Variation is the fluctuation in process output.
Fish Bone Diagram A Cause and Effect Analysis Technique. A diagram which explores the relationship between the problem and its
causes (by category).
Transfer function Transfer Function Y= f(X), describes the relationship between outputs (Y) & input / process(x) metrics.
FMEA Failure Modes & Effect Analysis
Mistake Proofing A technique for "Eliminating Errors" and "Making it Impossible" to make mistakes
Poka -yoke Japanese term which means mistake proofing, To avoid (yokeru) inadvertent errors (poka).
Probability Probability refers to the chance of something happening, or the fraction of occurrences over a large number of
trials.
Probability of Defect Probability of defect is the statistical chance that a product or process will not meet performance specifications
Robust Process A robust process is one where quality of output is immune to variation in inputs.
Control limits Also called "Voice of Process" : reflect the expected variation in the process , based on the distribution of the data
points.
BQC Business Quality Council- is Steering Committee to review and guide on Quality Initiatives aligned with Business
needs
BB Full Time Six Sigma Trained resource who completes High Impacts Projects to Improve Process Performance,
reduce defects and enhance Customer Satisfaction. BB also mentors Green Belts
MBB Master Black Belts are Six Sigma Quality experts that are responsible for the strategic implementation within an
organization. Master Black Belt's main responsibilities include training and mentoring of Black Belts and Green
Belts.
D-M-A-I-C…Overview
Step Description
Define
Step 1: Identify VoC & CTQs
Step 2: Define the Project
Step 3: Define Process map
Step 4: Building Team & Commitment
Step 5: Assess Risk
Measure
Step 1: Identify and prioritize CTQ Metrics
Step 2: Define Performance Standards
Step 3: Measurement System Analysis & Data Collection Plan
Step 4: Establish Current Process Capability
Step 5: Quantify the Opportunity
Step 1: Brainstorm potential solutions

Analyze
Step 2: Screen solutions against criteria
Step 3: Develop Implementation Plan
Improve
Step 1: Identify Root Cause / Sources of Variation
Step 2: Validate Root Causes
Step 3: Define Performance Objectives
Control
Step 1: Develop Control Plan
Step 2: Develop Process Management Flowchart
Step 3: Assess Potential Problems
Step 4: Implement Process Control System
D-M-A-I-C…Define Objectives
Step Description
Define
Selecting the Project
Step 5: Assess Risk
Define-Beginning With An Idea
Customer wants and

needs should drive
our actions!
 Who’s the customer?  What’s the business strategy?

 What does he/she think is critical  Who in the business holds a stake
to quality? in this?
 Who speaks for the customer?  Who can help define the issues?
 What are the processes involved?
8
Sources Of Project Ideas
 Customer dashboards
 Surveys
 Scorecards
 BQC
 Kaizen
 FMEA
Using Scorecard to Identify Projects
CTQs for Ramp Process Excluded
Defects – 210, Volume - 89610

Defects – 3192, Volume - 112761
Additional YB Trg Conducted

instead of LSS Awareness
Program
Selecting Right Project
H “Boiling the Six Sigma
Ocean” Projects
Business or Customer Impact
“Looking
Good”
Quick Wins
“Just Do It”
M
“Why
Bother?”
L M H
Understanding of how to solve problem
Impact - LCritical to Customer , Critical to Business
Knowledge - Solution Unknown
Speed - Results in 3-6 months
Project meets ROI expectations (e.g. savings level)
Project has available resources (BB, GB)
Project has clear sponsorship and process ownership
A defect or opportunity can be measured
Selecting The Right Projects
Issues in selecting a project:
 Feasibility (Is it doable?)
 Measurable impact
 Potential for improvement
 Resource support within the organization

Project Selection
 Success Factors
– Project scope is manageable
– Project has identifiable defect
– Project has identifiable impact
– Adequate buy-in from key stakeholders
 To be Successful…
– Set up project charter and have it reviewed
– Measure where defects occur in the process
– Assess and quantify potential impact up front
– Perform stakeholder analysis
 Common Pitfalls
– Resourcing of project is inadequate
– Duplicating another project
– Losing project momentum
– Picking the easy Y, not the critical Y
 Avoiding Pitfalls…
– Identify and get committed resources up front
– Research database and translate where possible
– Set up milestones and communications plan
Optimize
Optimizeon
onthe
theSuccess
SuccessFactors
Factorsto
toMaximize
MaximizeSix
SixSigma
Sigma
Project
ProjectBenefits.
Benefits.
Project Activity (20 minutes)
Answer the following questions as they relate to your project:

1. What are you improving?
2. When are you finishing?
3. What is the impact?
4. Potential for Improvement:
5. What is the difference between needed and available resources?
6. How many similar project are running across Processes
.
Define – Identify VoC & CTQs
Define
–Voice of the Customer
–Product/Process Drill-Down Tree
–Take Always-Identify Project CTQ’s
Step 4: Build Team & Commitment
Step 5: Assess Risk

Who Is The Customer?
Input Output
Supplier Process Customer
 Customer–Whoever receives the output of your process

– Internal Customer vs. External Customer
 Output–The material or data that results from the operation of a process

 Process–The activities you must perform to satisfy your customer’s
requirements
 Input–The material or data that a process does something to or with
 Supplier–Whoever provides the input to your process
What
Whatis
iscritical
criticalto
tothe
thequality
qualityof
ofthe
theprocess?
process?
…according
…accordingto toyour
yourcustomer!
customer!
Voice Of The Customer (VOC)
Definition: What is critical to the quality of the process

according to your customer.
Key VOC tools:

Surveys
Focus Groups
Customer Complaints
Customer Communication
Research Method
Advantages/Disadvantages
Advantages: Disadvantages:
 Lower cost approach  Mail surveys can get incomplete results,
 Phone response rate 70-90% skipped questions, unclear understanding
Surveys
Surveys  Mail surveys require least amount of  Mail surveys 20-30% response rate
trained resources for execution  Phone surveys: interviewer has influential
 Can produce faster results role, can lead interviewee, producing
undesirable results
 Group interaction generates  Learnings only apply to those asked,
Focus
Focus information difficult to generalize
 More in-depth responses  Data collected typically qualitative vs.
Groups
Groups  Excellent for getting CTQ definitions quantitative
 Can cover more complex questions  Can generate too much anecdotal
or qualitative data information
Research Method
Advantages/Disadvantages
 Can tackle complex questions  Long cycle time to complete
and a wide range of information  Requires trained, experienced
 Allows use of visual aids interviewers
Interviews
Interviews  Good choice when people won’t
respond willingly and/or
accurately by phone/mail
Customer
Customer  Specific feedback
 Provides opportunity to respond
 Probably not adequate sample size
 May lead to changing process
Complaints
Complaints appropriately to dissatisfied inappropriately based on 1-2 data points
customer
Project Activity (10 minutes)
 For your project:
 What tool did you can use for capturing VOC?
 List all customers and the segment(s) from which

you can captured VOC
Process/Product Drill–Down Tree
Define
Define product
product and/or
and/or process
process tree
tree How Customer CTQ’s
and identify product and process Product/Process/Service
and identify product and process Become Project CTQ’s
CTQ’s
CTQ’s
Sub-Process/ Sub-Process/ Sub-Process/

Service Service Service
A B C • Customer requirements
(customer CTQ’s)
• Process requirements
(process CTQ’s)
CTQ1 CTQ2 CTQ3 CTQ4 CTQ5 CTQ6 CTQ7 CTQ8 CTQ9
Process 1 Process-Based Projects
Controllable By Us
CTQ Projects
Process 2
Single
Process 3 Cell
Projects
Process 4
Important To Our Customer
Six
SixSigma
SigmaProjects
Projectswork
workononremoving
removingdefects
defects
on
onselected
selectedCTQ’s
CTQ’sbybyimproving
improvingprocesses.
processes.
Example: CTQ Drill–Down Tree
Loan Application
Reliable, Quick
Exceptional Timely
Level 1 CTQ Customer
Process
Service
Level 2 CTQ Knowledgeable Accessible Accurate Fast
Can Requests
Answer Rec’s 24 hr Access Clear Simple 72 hr for more
Level 3 CTQ Questions ‘right’ Access From Loan Loan Response Info within
correctly Loan Anywhere App App 24 hrs
Select Loan
Complete
App
Underwrite
Closing
Receive $
Exercise: Process/Product Tree
Your task:
Based on all previous Define work,
draw a CTQ Drill-Down tree for
your project
Take Aways–Identify Project CTQ’s
 A successful project is focused on the customer and is clearly bound
with defined goals
 To determine project CTQ’s the customer and their wants must be
determined. Critical to Quality characteristics (CTQ’s) are determined
by the customer
 A successful project is related to one or more of the four Vital
Customer CTQ’s:
– Customer Responsiveness/Communication
– Market Place Competitiveness-Product/Price/Value
– On-Time, Accurate, and Complete Customer Deliverables
– Product/Service Technical Performance
 Project CTQ’s are integrated with the business strategy through the
process/product drill-down tree
Define – Identify VoC & CTQs
Define

–Team Charter
–Business Case
–Problem & Goal Statements
–Project Scope
–Milestones
–Team Roles
–Good Project vs. Bad Project
–Take Aways-Develop Team Charter
Step 4: Managing Change & Build Commitment
Step 5: Assess Risk

Team Chartering
 A Charter:
– Clarifies what is expected of the team
– Keeps the team focused
– Keeps the team aligned with organizational priorities
– Transfers the project from the champion to the
improvement team
Five Major Elements Of A Charter
 Business Case
– Explanation of why to do the project
 Problem and Goal Statements

– Description of the problem/opportunity and objective
in clear, concise, measurable terms
 Project Scope
– Process dimensions, available resources
 Milestones
– Key steps and dates to achieve goal
 Roles
27
The Business Case
 Why is the project worth doing?

 Why is it important to do it now?
 What are the consequences of NOT doing the
project?
 What activities have higher or equal priority?
 How does it fit with the business initiatives and
target?
Problem And Goal Statements
The purpose of the Problem Statement is to describe what is

wrong
The Goal Statement then defines the team’s

improvement objective
Problem & Goal Statements Together provide focus

and purpose for the team.
Problem Statement
The Problem Statement is an objective description of the
“pain” experienced by internal and/or external customers as
a result of a poorly performing process.
– What is wrong or not meeting our customer’s

needs?
– When and where do the problems
occur?
– How big is the problem?
– What is the impact of the problem?
The Problem Statement
Key Considerations/Potential Pitfalls

– Is the problem based on observation (fact) or
assumption (guess)?
– Does the problem statement prejudge a root cause?
– Can data be collected by the team to verify and
analyze the problem?
– Is the problem statement too narrowly or broadly
defined?
– Is a solution included or implied in the statement?
– Would customers be happy if they knew we were
working on this?
The Goal Statement
 Project Objective
– Definition of the improvement the team is seeking to
accomplish?
– Starts with a verb (reduce, eliminate, control,
increase)
– Tends to start broadly–eventually should include a
measurable target and completion date
– Must not assign blame, presume cause, or prescribe a
solution!
SMART Problem And Goal Statements
SMART
Specific
 Does it address a real business problem?
Measurable
 Are we able to measure the problem, establish a baseline, and set targets for improvement?
Attainable
 Is the goal achievable? Is the project completion date realistic?
Relevant
 Does it relate to a business objective?
Time Bound
 Have we set a date for completion?
A methodology for evaluation is called “SMART.”
This acronym is a checklist to ensure that the charter

is effective and thorough.
Project Scope
 What process will the team focus on?

 What are the boundaries of the process we are to improve?
Start point? Stop point?
 What resources are available to the team?
 What (if anything) is out-of-bounds for the team?
 Under what (if any) constraints must the team work?
 What is the time commitment expected of team members?
 What are the advantages to each team member for the time
commitment?
Steps To Bound A Project
 Identify the customer
– Who receives the process output?
–(May be an internal or external customer)
 Define customer’s expectations and needs
– Ask the customer
– Think like the customer
– Rank or prioritize the expectations
 Clearly specify your deliverables tied to those expectations
– What are the process outputs? (Tangible and intangible deliverables)
– Rank or prioritize the deliverables
– Rank your confidence in meeting each deliverable
 Identify CTQ’s for those deliverables
– What are the specific, measurable attributes that are most critical in the
deliverables?
– Select those attributes that have the greatest impact on customer
satisfaction
Steps To Bound A Project (continued)
 Map your process
– Map the process as it works today (as is)
– Map the informal processes, even if there is no formal, uniform
process in use
 Determine where in the process the CTQ’s can be most seriously affected
– Use a detailed flowchart
– Estimate which steps contain the most variability
 Evaluate which CTQ’s have the greatest opportunity for improvement
– Consider available resources
– Compare variation in the processes with the various CTQ’s
– Emphasize process steps which are under the control of the
team conducting the project
 Define the project to improve the CTQ’s you have selected
– Define the defect to be attacked
Team Roles
 How do you want the Sponsor to work with the team?

 Is the team’s role to implement or recommend?
 When must the team go to the Sponsor for approval? What
authority does the team have to act independently?
 What and how do you want to inform the Sponsor about the team’s
progress?
 What is the role of the team leader (Black/Green Belt) and the team
coach (Master Black Belt)?
 Are the right members on the team? Functionally? Hierarchically?
Team Charter–Breakout Activity
Work How Who Time

Team  Choose a facilitator, timekeeper, scribe, and/or All 1 min.
Preparation note taker.
Write problem  For your own project, write a problem and goal Individuals or 15 min.
and goal statement using the guidelines in this section . partners
statement
Critique  Exchange problem and goal statements All 15 min.

with others in your group and provide suggestions
for improvement.
Close Exercise  Brainstorm key challenges in preparing Facilitator 5 min.

a good charter.
 Choose a spokesperson to report your All

identified challenges to the group.
A Good Project
 A good project:
– Problem and goal statement is clearly stated
– Defect and opportunity definition is clearly understood
– Does not presuppose a solution
– Clearly relates to the customer and customer’s requirements
– Aligns to the business strategy
– Uses the tools effectively
– Is data driven
 A bad project:
– Is not focused-scope is too broad
– Is not clear on what you are trying to fix
– Is not an already known solution mandated without proper investigation
– Is difficult to see linkage to customer needs
– Is not clearly aligned with business objectives
– Has little or no use of tools
– Is anecdotal-not data driven
Define – Process Map
Define

– High Level Process Map (SIPOC)
– Detail Process Map
Step 4: Managing Change & Build Commitment
Step 5: Assess Risk

What Is A Process?
A process is any related, recurring sequence of
events, steps, activities, or tasks which result in a
desired outcome.
Processes must have steps that repeat each time the

process is used.
Processes can be defined as either core or enabling.

– Core processes: things that we “must do.”
– Enabling processes: series of tasks and activities that

are internal to the business but contribute to the
performance of core processes.
Process Mapping
Objectives
– Learn the definition of process mapping
– Understand business processing mapping and its Application to

completely satisfying customer requirements
– Learn the key process elements
– Learn the importance of process boundaries and process owners
– Understand the benefits of process mapping
– Understand the steps of process mapping

Process Mapping Definition
Process Mapping Is the Graphic Display of Steps, Events and Operations

That Constitute a Process
A tool used to:

– Clearly define processes
– Identify areas where data collection should take place
– Visualize activities involved in a process at the early stages of project development
– Establish the process boundaries
– Observe the process in operation
– List the outputs, customers, and their key requirements
– List the inputs, suppliers, and your key requirements
Benefits Of Process Mapping
 Can reveal unnecessary, complex, and redundant

steps in a process. This makes it possible to simplify
and troubleshoot.
 Can compare actual processes against the ideal. You
can see what went wrong where.
 Can identify steps where additional data can be
collected
Perceptions Of A Process
What we think it looks like:
What it actually looks like:
What we wish it would look like:
Do
Donot
notjump
jumpto
to“What
“Whatwe
wewish
wishititwould
wouldlook
looklike”.
like”.
Building A Map
 Determine the scope

– How complex and detailed a map do you need to give
you what you want?
 Determine the steps in the process
– Don’t worry about order
– Don’t worry about priorities
– Just list them!
 Arrange the steps in order
 Assign a symbol (see next page)
To Identify Areas Of Improvement, Processes Must Be Decomposed Into
Sub Processes
Deliver
Obtain Customer
Core Process Customer
Product/
Service
Accounting
Service
Sub-process Marketing Advertising Sales
Market
Sub-process Segmentation
Design Offer Promotion
Two Decomposition And Analysis Techniques Are In This Section:
1) Top-down Charting; 2) Functional Deployment Process Maps
To gain significant insight into The two most commonly used
how work is actually process mapping tools are the top-
down chart and the functional
completed, one must
deployment process map.
understand processes.
Top-Down Charts: document a
Process mapping is a core process and its related sub-
technique used to document processes.
and analyze processes.
Functional Deployment Process
Maps: document sub-processes,
Process mapping identifies the the sequence of individual steps
flow of a process that any and decisions, and who is
service or product follows. responsible for them.
Top-down Charting Uses Two Levels Of Detail:
Process And Sub-process
Top-Down Charting
Process ________________________________________________________
Sub-processes
Start Stop
__________ __________ __________ __________ __________
Define your hard start and stop to the process before

doing the steps.
Functional Deployment Mapping Is Used To Further
Define And Understand A Sub-process Activity
Responsible
Core Steps
Clerk Supervisor Materials Scheduler
Management
Process
Log-in Order
Prioritize
Order N
Review for
Specifications
Y
Materials
Explosion
Schedule
Fabrication N
Inspection
Y
Distribution
Top-Down Charting Functional Deployment Mapping

Standard Symbols Are An Integral Component To Completing A Functional
Deployment Process Map
No
Yes
NOTE: Yes-arrows stem from the bottom of the diamond, symbolizing the quickest way to customer satisfaction.
Using Proper Symbols, A Descriptive And Accurate Functional Deployment
Map Can Be Created
Credit/Collect.
Department
Inven. Cont.
Sales Office
Accts / Rec
Purchasing
Shpg / Rec
Order Dept
Mig. / QC
Traffic
Billing
Sub-processes
Entry Order
A1
Approve Credit
A4 A3 A2
Procurement
A5 A6 A7 A8
Manufacturing
A11 A10 A9 D1
Request
A12
D2
Routing
A14 A15 A16 A17 A18
A13
Shipping
A19 A20 A21 A22
D3
Billing
There Are A Few Helpful Hints To Keep In Mind When Creating A
Deployment Process Map
Define your hard start and stop to the process before doing the steps.
Keep it simple. Use as few words as possible to label columns and describe work
steps.
If work flows into and out of the process: Create a separate column and label it
“outside,” or create columns where the headings reflect where the flow goes
(department head, engineering, etc.).
Include the individuals involved in a process on the process mapping team. These
are the employees who are most familiar with a process and who will have to live with
any future process changes.
A common view of the process rarely exists at the outset. Individual team members
who possess a detailed knowledge about a unique part of the process do not always
consider how each part relates to the big picture.
Case Study Exercise
Exercise
Process Mapping
Exercise: Project Process Mapping
Objective
To practice developing process maps
Exercise
Instructions
– As a project team, use either the Top Down Method or the
Functional Deployment Map method and draft a process
map for “Origin to end of Life of Transaction”
Define – Building Team & Commitment
Define


– Team Building
– Align Roles & Processes
– Building Commitment from Stakeholders
Step 5: Assess Risk

Steps towards Success
Project Definition
SCOPE - Timing
Organizations Involved
Processes Involved
Levels Involved
GOALS - Results / Target for Project

Measurements of Success
ROLES - Who Should be on Project Team?

What is Their Role?
Steps towards Success
Boundaries:
Who outside our team must we involve, inform or consult with?
What decisions need approval from someone outside our team?
What is not in our scope of work (though others might think it is)?
What authority does the team have to act independently?
Roles and Responsibilities:

What is the reporting relationship to the Team Sponsor?
What role and area(s) of responsibility does each team member
have?
What unique responsibilities does the Team Leader have?
Operating Agreements:
How will the team make decisions; resolve conflicts?
What are acceptable/unacceptable levels of involvement?
How often and how long will we meet as a team?
Building Team
PROJECT PHASE
Key
Stakeholders Startup/Planning Implementation Evaluation
What: A tool to determine individuals and/or groups whose

commitment is essential for project success
Why: To ensure that the project leader has identified Key

Stakeholders
How: List individuals/groups involved in the process and identify

project function
When: Team Building
59
What Role People play in our Project ?
PROJECT PHASE
Key Stakeholders
Startup/Planning Implementation Evaluation
A Approval of team decisions outside their charter authorities, e.g.,

sponsor, business leader
R Resource to the team, one whose expertise, skills, or clout may be
needed on an ad hoc basis
M Member of team, with the authorities and boundaries of the charter
I Interested party, one who will need to be kept informed on direction and
findings, if later support is to be forthcoming
A-R-M-I …an example
KEYSTAKE
HOLDERS Function DEFINE MEASUR E A
N A
LYZ E IMPROV E CONTRO L
Sponsor A
,I A,I A ,I A,I A,I
MBB A A A A A
BB R ,I R ,I R,I R ,I R ,I
GB(Leader) M M M M M
Mem ber R R,M R,M R,M R,M
Mem ber M M M M M
Mem ber M M M M M
Goals-Roles-Processes-Interpersonal Check List
Goals Roles Process Interpersonal

Low High
Check list
GOALS–How clear and in agreement are we on the mission and 1 2 3 4 5
goals of our team/projects?
ROLES–How well do we understand, agree on, and fulfill the 1 2 3 4 5
roles and responsibilities for our team?
PROCESSES–To what degree do we understand and agree on the 1 2 3 4 5
way we’ll approach our project AND our team? (Procedures and
approaches for getting our project work done? For running our team?)
INTERPERSONAL–Are the relationships on our team working well so 1 2 3 4 5
far? How is our level of openness, trust, and acceptance?
An excellent organizing tool for newly-formed teams or for teams that have been
underway for a while, but who have never taken time to look at their teamwork. Ideally,
this tool should be used at one of the first team meetings. It can and should be updated
as the project unfolds.
How would you rate the degree to which your team presently has CLARITY,
AGREEMENT, and EFFECTIVENESS on the following related elements?
0% 25% 50% 100%

 Purposes & Outcomes
G We understand and agree on our project mission and the desired outcome (vision).
O  Customer & Needs

We know who the project stakeholders are, what they require, and why this project is really
A needed.
 Goals & Deliverables
L We have identified specific, measurable and prioritized
to our business goals.
project goals and deliverables linked
S  Authority & Autonomy (Scope)

We understand/agree on what’s in/out of our project scope and tasks. The project scope is “set”.
 Roles & Responsibilities

R We have defined and agreed on our roles, responsibilities, required skills, and resources for our
& project team.
 Authority & Autonomy
R Our team is clear on the degree of authority/empowerment we have to meet our project mission.
0% 25% 50% 100%
P  Critical Success Factors

We know and are focusing on the key factors needed to meet the project goals and mission.
R  Plans & Activities
O We have an effective game plan to follow that includes the right tasks, clearly
C defined/assigned.
E  Monitoring & Measures
We have an effective monitoring process and specific metrics linked to progress and
S goals.
S  Schedule/Milestones
We have defined our project schedule and know what the
key phases and milestone are.
I  Team Operating Agreement

We have shared expectations, agreed and followed guidelines for how our team works
N together.
T  Interpersonal/Team
E We have the necessary relationships, trust, openness, participation and behaviors for a
healthy and productive team.
R
P
E
R
S
O
N
A
L
Stakeholder Analysis
Strongly Moderately Neutral Moderately Strongly

Names Against Against Supportive Supportive
Steps:
1. Plot where individuals currently are with regard to desired change ( = current).
2. Plot where individuals need to be (X = desired) in order to successfully accomplish desired
change–identify gaps between current and desired.
3. Indicate how individuals are linked to each other; draw lines to indicate an influence link
using an arrow ( → ) to indicate who influences whom.
4. Plan action steps for closing gaps.
Stakeholder Analysis Contd…
Stakeholder
Name/Title Strongly Moderately Moderately Strongly
or Constituent Against Against Neutral Supportive Supportive
Reasons for Rating
Stakeholder Analysis / Influence Strategy
Names SA MA N MS SS Issues / Concerns “Success Indicators Influence Strategy

Influence Strategy
Desired New S.H Issues/ Identify S.H. Influence Strategy

Stakeholder Behaviors Concerns “Wins” What Who By When
Communication Planning Worksheet
Message Media When / Where

Target objective Who
Audience (inform, persuade, (written, events,
empower) one-on-one, etc.)
Work Planning In Team
When
Who Action/Task
Breakout Activity (25 minutes)
Desired Outcomes
To practice identifying Stakeholders and their support relative to your project
What How Who Time

Team  Choose a facilitator, scribe, timekeeper, All 5 min.
Preparation and/or note taker
 Determine timing for each activity below

Create  Using the Stakeholder Analysis worksheet Individuals 20 min.
preliminary provided:
Stakeholder – List key stakeholders for your project.
Analysis – Identify their current level of support.
– Determine where you need them to be in order
for the project to be successful.
Close  Choose a spokesperson to report out on top 2-3 key All

exercise elements of your influence strategies
Define – Assessing Risk
Define

Step 5: Assess Risk

– For the Project
– From the Project on

Assess the Risk for Project
Assess the Risk
• For the Project
• on Process/Customer due to Project
For the Project

•What is probability of Failures of My Project
•What will Fail
•How it will fail
•What action are required to prevent
•Who are responsible for these actions
•Timelines to complete these actions
Use FMEA methodology to assess Risk for the Project
•on Process/Customer due to Project
•What are the process / Customer CTQs gets affected
•What is the probability of negative impact
•Identify all risks
Define
Step 5: Assess Risk

Measure Step 4: Establish Current Process Capability

Analyze Step 3: Define Performance Objectives

Improve Step 3: Develop Implementation Plan

Control Step 3: Assess Potential Problems
Content Flow
• Transfer Function
•Y&X
• Difference between Xs and Segmentation
• Using Statistics to Solve real problem
• Statistics software – Minitab
• Using data for Understanding variation
• Continuous Vs discrete Data
• Sources of Variation
• Type of variation
• Describing Variation over a period of Time
• Statistics
• Distribution
•Shape
•Normal curve
•Normal Probability
• Histogram
Content Flow
•Statistics
• Central Tendency
• Descriptive Statitics
• Variation
• Histogram
• Measures of Variation
• Variation over a Period of Time…Display
• Run Chart
• Two Types Of Variation
• Analyzing Relationships
• Scatter diagram
• Pareto
Content Flow
• Establish Process Capability

• Identify your Project Y data Type
For Continuous Data
• Identify the Data- Normal & Non Normal
• Check Stability- Run Chart
• Check Distribution & Spread
• Calculate Process Capability- Sigma Value, DPMO – Capability Analysis
For Discrete data
• Calculate Process Capability- Sigma Value, DPMO – Capability Analysis
• First Pass Yield
• Cumulative Yield Calculation
Content Flow
• Identify Sources of Variation

• Brainstorm for Possible sources of Variation – Fishbone Diagram, 5-Why
• Prioritize all Possible Xs – Control/Impact Matrix
• Validate Prioritized Xs
• Validation of Process as X
• Type of Work – Waste
• Nature of Work – VA/NVA/VE
• Flow of Work – Sub Process Map
• Data Analysis
• Hypothesis Testing
• List of Validated Xs
Content Flow
• Define Performance Objective

• Benchmarking
• Other sources
Terminology
Independent Variables–X’s
 Also called factors
 Factors or variables we select in advance
 The causes
Project Y
Dependent
Independent X
(5M’s and 1P)
Dependent Variable–Y
 Also called responses
 The quantity (Y) that we measure to determine
the impact of the X’s
 The effect (x) (x) (x)
M M M
Project Y
P M M
(x) (x) (x)
80
Bridging The Real World
Problem
Solving Practical
PracticalProblem
Problem
Flow State current process sigma.
Statistical
StatisticalProblem
Problem
Identify distribution’s characteristic
causing current process sigma: shape,
center and/or spread.
Statistical
StatisticalSolution
Solution
Find X’s that lead to better process
sigma: Identify the levels of X’s
Practical
Practical Solution
Solution
Identify process change that
incorporates statistical solution
© 1994 Dr. Mikel J. Harry V3.0
81
The Nature Of Statistical Problems
Problem with Spread
Desired
Current
Accurate but not Precise
Accurate but not Precise Situation
LSL
LSL TT USL
USL
Problem with Centering

Current
Desired Situation
Precise but not Accurate
Precise but not Accurate Off Target
LSL
LSL TT USL
USL
© 1994 Dr. Mikel J. Harry V3.0 δ

82
Using Statistics To Solve Problems
Goal: To find the relationship

Y = ƒ (X1, …, Xn)
µ
P(x)
Data-Driven Analysis
83
Using Statistics
To Characterize Processes
Likelihood
σ
µ
Likelihood
σ
84
Minitab and Graphical Analysis Module Objectives
Understand the structure of Minitab*
Understand data entry and correct data structure for analysis in Minitab
Review variation
Be able to create and interpret basic graphs in Minitab
Minitab Windows
Menu Bar
Session Window:
• Analytical Output
Data Window:
• A Worksheet, not a
Spreadsheet
Graph Window
Data Window
Minimizes the Window Closes the Window
Data Entry Arrow

Maximizes
the Window
Column Names
Are Entered Here
Data is Entered
Here
Scroll Bars
Minitab Menus–Summary
File Menu  Print and save the window that is currently active
 File menu changes depending on the window that is currently active
 Allows open, close, and save
Edit Menu  Similar to the edit menu in most standard Windows applications
Data Menu  Sort, code or manipulate data
Calc Menu  Calculate or generate data
Stat Menu  Basic statistics and quality tools

 Most often used by Green Belts
Graph Menu  Contains the commands that you will use to do graphical analysis during
your project
Help Menu  Minitab has a comprehensive Help system with detailed documentation of
all features, complete with examples of how all the menu commands are
used, and how to interpret graphical and statistical output which result from
the use of the commands
Window Menu  Allows you to manage multiple graphs on the screen
Using Minitab: A Typical Session
1. Enter data
2. Select menu command (for desired statistical/graphical function)
3. Enter command parameters in the dialog window
4. View results in session window or graph window
5. Copy output to another application
6. Print output
7. Save file
Step 1: Enter Data Minitab allows you to enter data in four different ways:
1. Open an existing Minitab worksheet
2. Type data into the worksheet
3. Import data files from other compatible software packages
4. Paste data from other applications
Step 1: Enter Data
Type data
directly into
worksheet
Step 1: Enter Data
1.3 How to import an Excel data file:

1. File > Open Worksheet
2. Select Files of Type: Excel
3. Highlight the file to be imported
4. Double-click or click Open
Step 1: Enter Data
Paste data from Excel
1.In Excel:
Highlight Data (and Column Names) to be copied
Using Your Mouse
2.Copy the Data to the Windows Clipboard

Edit > Copy (or CTRL-C on Your Keyboard)
3.Go to Minitab:
ALT > Tab
4. Position the Cursor where you want the data to fill

See example below.
5. Go to the Edit Menu:

Edit > Paste/Insert Cells (or Ctrl-V on the keyboard)
Insertion point
Step 1: Enter Data
Tips for moving data back and forth:
Structure the data so that each variable is in a single column
Each column must have a title
The column title must have fewer than 31 characters and be
on a single line
All data must immediately follow the column names
Do not put empty rows between rows of data
Columns containing dollar signs or commas cannot be transferred to Minitab using Copy or Paste, but can be imported using the
import command. Reformat these numbers to include only decimal points.
After movement into Minitab, check column heading type
(D vs. T.)
Step 1: Enter Data.
Tables vs. Variable Columns
Sales Office Revenue Month

Central 387,980 January
Central 45,700 February
Sales Office January February March April Central 456,789 March
Central 387,980 45,700 456,789 349,050 Central 349,050 April
Southwest 578,990 600,987 456,789 456,798 Southwest 578,990 January
Northeast 435,800 542,700 345,988 564,050 Southwest 600,987 February
Southeast
The best format 497,050
for 827,900 456,789 687,050 Southwest 456,789 March
Northwest 613,242
analysis of data in 61,689 456,789 434,567 Southwest 456,798 April
Minitab is variable Northeast 435,800 January
columns.
Northeast 542,700 February
Northeast 345,988 March
Northeast 564,050 April
Southeast 497,050 January
Southeast 827,900 February
Southeast 456,789 March
Southeast 687,050 April
Northwest 613,242 January
Northwest 61,689 February
Northwest 456,789 March
Northwest 434,567 April
Graphical Analysis Of Data
Key Questions:
How is my data distributed (variation)?
What relationships exist between the
Y variable and X variables?
Review–Variation
All repetitive activities have variation (fluctuation)
Variation is a primary source of customer dissatisfaction
In order for our customers to “feel the quality” , we must reduce variation
Using Data To Understand Variation
Plot The Data Using Variation Tools
Study Variation For A Period Of Time Study Variation Over Time

Histogram Run Chart
Measurement
Frequency
Measurement Time
For Continuous Data For Discrete Data For Continuous Data For Discrete Data
– Histogram Bar Chart Run Chart Control Charts
Box Plot Pie Chart Control Chart Run Chart
Histogram
Review–Continuous vs. Discrete Data
Reminder: Data Type Is Critical!
Data type dictates how much variation we will see:
Continuous data–the most information about variation in the process
Discrete data–less information about variation in the process
Application Cycle Time

Upper Specification Limit = 30 Days
Continuous
Y = days to process
Discrete
Y = late/on-time USL
Actual Times
No. Rec’d No. Late

28 23 13 34 24 29
21 16 24 11 49
30 2
21 21 25 26 27 27
29 30 29 30 20
10 30 12 11 27 23
24 28 17 9 30
29 29 28
Less variation information The most variation information
5 M’s & 1 P
Sources Of Variation
Machines P
Methods R
Materials O
Measurements
C
E
Mother Nature
S
People
S
Two Types Of Variation
Common Versus Special Causes
Type of Variation Characteristics

Characteristics
Always Present
Common Cause Expected
Predictable
To distinguish between common and special causes variation, use display
tools that study variation over time such as Run Charts and Control Charts.
Normal
Not Always Present

Special Cause Unexpected
Unpredictable
Not Normal
Describing Variation For A Period Of Time: Data
Distributions
Key Questions:
What is the shape of the distribution–symmetrical, lopsided, cliff-like shape, twin peaks, flat?
What is the central tendency (“center ” or “average”)
of the distribution?
What is the variation (“spread”) of the distribution–wide or narrow?
Statistics
Statistics is concerned with making inferences about general populations and about characteristics of
general populations
We study outcomes of random experiments
If a particular outcome is not known in advance, then we do not know the exact value assigned to the
variable of that outcome:
The number of invoices received weekly
The cost in dollars of reworking each part
The number of surfaces that are rough on a cast part
The number of calls received every Monday between the hours of 8-9 a.m.
We call such a value a random variable
Some Distributions
A random variable can be expressed in terms of a distribution
Uniform Distribution
Single roll of dice
All permissible values p(x)

are equally likely
P(X)
Triangular Distribution
Sums of pairs of dice
X Rapidly descending
P(X), no tails
P(X)
X
Distributions
Normal Distribution
Process/repair times
Error fluctuations about an

operating point
P(X)
Exponential Distribution
Time between arrivals
Time between random

X (unrelated) failures
Events with no memory from one

to the next
P(X)
X
Shape
Shape is the distribution pattern exhibited by the data
Assess shape using a histogram, or more precisely with a Normal Probability Plot
Roughly Normal Distribution Skewed Distribution

7 20
6
Frequency
5
Frequency
4
3 10
2
1
0 0
Bimodal Distribution
12 13 14 15 16 17 18 19 0 10 20 30 40 50 60 70 80 90
6
5
Frequency
4
3
2
1
0
7 9 11 13 15 17 19 21 23
The Normal Curve
Is The Data Distribution Normal?
Definition:
A probability distribution is where the most frequently occurring value is in the middle and other probabilities tail off symmetrically in
both directions.
Characteristics:
The curve does not reach zero
The curve can be divided in half with equal pieces falling either side of the most frequently occurring value
The peak of the curve represents the center of the process
The area under the curve represents 100% of the product the process is capable of producing
The Normal Curve (continued)
Specific Characteristics
34.13% 34.13%
13.60% 13.60%
2.14% 2.14%
68.26% Fall Within +\- 1 Standard Deviation
0.13% 0.13%
-3s -2s -1s X +1s +2s +3s

68.26%
95.46%
99.73%
Normal Probability Plot
Alternate Description Of Shape
Normal Probability Plot
.999
.99
.95
Probability
.80
.50
.20
.05
.01
.001
2 12 22 32
Cycle Time
Average: 16.3921 Anderson-Darling Normality Test
StDev: 5.61675 A-Squared: 0.208
N: 240 P-Value: 0.864
Normal Probability Plot (continued)
Distribution Type:
Straight line Bimodal curve Skewed Long-Tailed
Roughly Normal Distribution Bimodal Distribution Skewed Distribution Long-Tailed Distribution

7 6 20 6
6 5 5
5
Frequency
4
Frequency
Frequency
Frequency
4
3 10
3 3
2 2
2
1 1
1
0
0
12 13 14 15 16 17 18 19 0 0
7 9 11 13 15 17 19 21 23
0 10 20 30 40 50 60 70 80 90 7 9 11 13 15 17 19 21 23
Normal Probability Plot for a Normal Probability Plot for a Normal Probability Plot for a Normal Probability Plot for
Normal Distribution Bimodal Distribution Skewed Distribution Long-Tailed Distribution
99 ML Estimates 99
ML Estimates ML Estimates
Mean: 14.6382
Mean: Mean: 15.0790
95 95
StDev: 5.47084
StDev: 90 StDev: 12.6232 90
80 80
Percent
Percent
Percent
70 70
Percent
60 60
50 50
40 40
30 30
20 20
10 10
5 5
1 1
0 10 20 30 0 10 20 30
How Distribution Looks On Normality Curve:
Straight line Zig-zag Two lines “S” curve

(Stable Operations)
What If Your Data Is Not Normal?
If you conclude that Y is non-normally distributed, there are two general approaches:
Approach : Variance-based Thinking (VBT) Methodology
possibly multiple processes embedded
segmentation and stratification
Range reduction
Expectation: Green Belts Should Be

Able To DO Approach 1
“Center” Or Central Tendency
Descriptive Statistics:
Normal Distribution
Represents the nominal value
of the process.
Mean ( )
Median (“middle” data point)
X
Quartile Values (Q1, Q3) x
Long-tailed Distribution
Skewed Distributions
Q1 Q3
“Center” Or Central Tendency (continued)
The Mean, sometimes called the average, is the most likely or expected value. The formula for the mean is:
The Median is literally the middle of the data set where 50% of the data is greater than the median, and 50% of the data is less than the median. The
∑
most commonly used symbol for the median is . The procedure for calculating the median is:
X 1. The sum of all data values
Order the numbers from smallest to largest
i
X=If the number of values (N) is odd, the median is the middle value. For example, if the ordered values are 3, 4, 6, 9, 20, the median is 6.
n
If the number of values2. Divide
(N) isbyeven,
numbertheof data values is the average of the two middle values. For example, if the ordered values are 1,5,8,9,12,18, the
median
median is 8.5.
For very skewed data, we can describe the central tendency in terms of the quartile values, Q1 or Q3.
Q1 is the data point that divides the lowest 25% of the data set from the remaining 75% and is used to describe performance when the data is
skewed toward the right.
Q3 is the data point that divides the highest 25% of the data set from the remaining 75% and is used to describe performance when the data is
skewed toward the left. ~
X
Variation
Descriptive Statistics
Represents the variation of
Normal Distribution
the process
Standard Deviation (s) s

Range
Long-tailed Distribution
x=.05 x=.95
Skewed Distributions
Q1 Q3 Q1 Q3
Variation For A Period Of Time
Descriptive Statistics Summary
Shape Normality Plot Center Spread

(central tendency) (variation)
Normal Probability Plot for a Normal Distribution
ML Estimates
Mean:15.7224
StDev:1.74183
Percent
Standard
( )
Mean X Deviation (s)
normal
Normal Probability Plot for an Exponential Distribution
ML Estimates
Mean:15.0790
StDev:12.6232
Quartile Stability Factor
Percent
Q1 or Q3 (SF)
skewed
Normal Probability Plot for a Long-Tailed Distribution
99 ML Estimates
Mean:14.6382
( X~ )
95 StDev:5.47084
Percent
90
80
70
60
50 Median Span
40
30
20
10
5
long-tailed 1
0 10 20 30
Normal Probability Plot for a Bimodal Distribution
99 ML Estimates
The different processes must be stratified

Mean:14.6382
95
StDev:5.47084
90
Percent
80
70
60
50
40
before descriptive statistics
can be calculated.
30
20
10
5
bimodal 1
0 10 20 30
Displaying Variation For A Period Of Time
Histogram
Measurements Graphical Display

Time Time Histogram of Time Estimates
Estimates Estimates
Round 1 Round 2
16.48 13.84 10
18.89 13.50
# of Occurrences
13.18 15.41
11.11 14.35
14.67 14.37
16.53 14.63 5
14.79 13.58
18.06 14.75
14.48 11.95
14.89 14.36 0
15.63 16.17
10 11 12 13 14 15 16 17 18 19
13.95 15.15
13.74 12.48 Time Estimates (in seconds)
17.67 14.12
10.23 19.00
13.67 13.81
11.35 12.97
15.03 14.19 Illustrates
 Shape (pattern) of the data
 Central tendency (center) of the data
 Variation (spread) of the data

Displaying Variation For A Period Of Time (continued)
Box Plots
* Outlier
Highest Value
Third Quartile (75%) value

Each segment
represents Median
25% of the
data points First Quartile (25%) value
Lowest Value
Summary–Variation For A Period Of Time
10
Data
28 23 13 34 24 29
21 16 24 11 49 21 Histogram
21 25 26 27 27 29
30 29 30 20 10 30 5
12 11 27 23 24 28
17 9 30 29 29 28
10 11 12 13 14 15 16 17 18 19
Variation Over Time
Run Chart
A graphical tool to monitor the “stability of Project Y
Allows observation of time order properties such as trend
Should be used before any detailed data analysis
Example of a Run
Chart
Median
Is the process stable over time?

Run Charts–Special Cause Patterns
If p < 0.05, then there is significant statistical evidence to show that one of the trends below exists.
Mixture Cluster
Oscillating Trend
Two Types Of Variation
Investigating Common vs. Special Causes
For new process data, use a Run Chart to look for special causes
Investigate special cause points for positive quick-fixes
Common cause variation requires systematic improvement effort
Two Types Of Variation (continued)
Reacting To Common vs. Special Causes
How you interpret variation . . .

Common Causes Special Causes
Focus on systematic Mistake 1

Common Tampering
process change
Causes (increases variation)
True
variation
type...
Mistake 2 Investigate
Special Under-reacting special causes
for possible
Causes (missed prevention)
quick-fixes
Graphical Analysis Tools
Looking For Patterns In Data
Continuous Y Discrete Y
Boxplot
Pareto Chart
Scatterplot
Box Plots
What differences do you see between the output from the different shifts?
60
Measure
30
10
Shift 1 Shift 3 Shift 4 Shift 6

Shift 2 Shift 5
Scatter Diagrams–Analyzing Relationships
Use Scatter Diagrams To Study The Relationship Between Two Variables.
40
Cycle Time (Days) (Y)
35
30
25
20
15
10
5
1K 2K 3K 4K 5K 6K 7K 8K 9K 10K
Size Of Loan (X)

Warning! Correlation Does Not Imply Causation
Correlation Between Number Of Storks And Human Population
100 200 300

80 80
70 70
Population
(In Thousands)
60 60
50 50
100 200 300
Number Of Storks
Source: Box, Hunter, Hunter. Statistics For Experimenters. New York, NY: John Wiley & Sons. 1978
Interpretation Of A Scatter Diagram
Look For:
Common patterns in the data
Range of the predictor variable (X)
Irregularities in the data pattern
Interpreting A Scatter Diagram
Look For Patterns
1 3 5
Strong Positive Correlation Strong Negative Correlation No Correlation
2 4 6
Positive Correlation Negative Correlation Other Pattern
For all charts: Y = Participant satisfaction (scale: 1 – worst to 100 – best)

X = Trainer experience (# of hours)
Common Scatter Diagram Patterns
Strong,
Plot +/- Other Example
Weak, Other
1
Effect
Potential Cause
2
Effect
Potential Cause
3
Effect
Potential Cause
Common Scatter Diagram Patterns (continued)
Strong, Weak,
Other
Effect
4
Potential Cause
5
Effect
Potential Cause
6
Effect
Potential Cause
Strong,
Plot +/- Other Weak, Other Example
7
Effect
Potential Cause
8
Effect
Potential Cause
9
Effect
Potential Cause
Strong,
Weak, Other
10
Effect
Potential Cause
11
Effect
Potential Cause
12
Effect
Potential Cause
Pareto Charts
Is There A Defect That Occurs Frequently?
Frequency
C A E D B
Category of Defect
Establish Process Capability
In this step your team:

– Calculates baseline process capability for the process
Why is this step important?

This phase is important because it clearly defines how well the process is currently
performing and identifies how much the process will be improved.
What is establishing Process capability
What does it mean to Establish Process Capability?
 Process capability refers to the ability of a process to produce a defect-free product or service. In this step, you will determine how
consistently your product or process meets the performance standard for your project Y calculating the sigma level. The sigma level is
calculated through statistical analysis of the collected data.
 Why is it important to Establish Process Capability?
You can’t set a measurable goal without a clear understanding of where you are. It is important to establish process capability in order to
baseline your current process performance. This will be the starting point from which you will set your improvement goals.
 What are the project tasks for completing Step 4?
4.1 Graphically analyze data for project Y (continuous data only)
4.2 Calculate baseline sigma for project Y
Step 4.1: Graphically Analyze Data For
Project Y
Review: Describing Variation
Prior to Calculating Capability, we need to know:
Key question #1–Stability–Variation over time (Run Chart)
How stable is the data?
Key Question #2–Shape, Spread–Variation for a period of time: Data Distributions (Graphical Analysis)
– What is the shape of the distribution–symmetrical, lopsided, twin peaks, long-tailed? (determination of
normality)
– What is the central tendency (“center” or “average”) of the distribution?
– What is the variation (“spread”) of the distribution
– Wide or narrow?
Steps 4.2: Calculate Baseline Sigma
What IS Process Capability?
A measurement scale which compares the output of a process to The performance

standard
Common Metric For Comparison
Process Performance
Purchase Order 98% accuracy
Generation
Accounts Receivable 33 days average aging
Customer Service 82% rated 4 or 5 on responsiveness
Supplier Delivery 95% on-time delivery
Which process is performing best?

Data Analysis Roundup
Process Capability Tools and Terminology

e.g Cycle Time, Length,
e.g Light off Weight…
e.g Light On
Discrete
DiscreteData
Data Continuous
Continuous
Data
Data
Defects per Six Sigma Report:
Opportunity
Zlongterm
Defects per Million
Opportunities Zshortterm= Zbench=
reportedyield
Six Sigma Product
Report Zshift
Process Capability Continuous Data
– Verify we have a normal distribution

– Calculate ZLSL and/or ZUSL
– Determine probability of a defect
– Determine ZBench
Calculating Z
You can calculate a Z-value for any given value of x. Z is the number of standard deviations which will fit between the
mean and the value of x.
X −µ
Z =
σ
µ 1σ 2σ 3σ 4σ
Calculating Capability
X = 8.5
s = 0.1
xx
Probability
Probabilityofofaa Probability
Probabilityofofaa
defect
defectless
lessthan LSL
LSL USL
USL defect
than defectgreater
greater
LSL
LSL than USL
ZLSL ZUSL than USL
Standard Deviations - 4 -3 -2 -1 0 1 2 3 4
Units of Measure 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9
ZUSL = USL - X = 8.7 - 8.5 = 0.2 = 2

s 0.1 0.1
ZLSL = X - LSL = 8.5 - 8.2 = 0.3 = 3
s 0.1 0.1
Long-Term vs. Short-Term Data
Long-Term Data
Y
(Continuous)
Short-Term
Data
Time
Reporting Sigma Values
 Short-Term Sigma = Long-Term Sigma + Sigma Shift
– If “Shift” is unknown, then assume 1.5
– Assume that sigma calculated from project data is long-term sigma
– A rational sub grouping sampling scheme for data collection (in the Measurement
Phase) must have been used
Principles Of Rational Subgrouping
1. Never knowingly subgroup unlike things together
2. Minimize variation within each subgroup group homogeneous units, within a logic, within a reason
3. Maximize variation between sub groups the Xbar shows differences between subgroups that are
bigger than that shown within subgroups
4. Treat the chart in accordance with the use of the data subgroup frequency should reflect the process
use individuals with limited data use subgroups when logical
Generalizing The Correction
Six Sigma Centered

Process
Capability
.0005 ppm .0005 ppm

TT
LSL
LSL ± 6σ USL
USL
USL
Six Sigma Shifted 1.5σ

µµ
3.4 ppm
TT
LSL USL
4.5σ
The Universal Equation For Z
. . . so what are the possibilities? SL - λ

Z=
σ
SL = USL
LSL λ =
T (Target)
µ (Mean)
Z =
st (short-term)
lt (long-term) σ st
σ lt
and how do we choose the right one?

Z-Bench
Short-Term
Long-Term
P(d)LSL P(d)USL
_x
LSL T USL
Z-Long-Term Z-Short-Term
SL - µ SL - T
Zlt = Zst =
σ lt σ st
Z-Bench-Long-Term Z-Bench-Short-Term
USL - µ µ - LSL USL- T T - LSL
ZUSL = ZLSL = ZUSL = ZLSL =
σ lt σ lt σ st σ st
P(d)USL = from P(d)LSL = from P(d)USL = from P(d)LSL = from

Z table Z table Z table Z table
P(d)Total = P(d)USL + P(d)LSL P(d)Total = P(d)USL + P(d)LSL
ZB-lt = from Z table ZB-st = from

Z table
Activity–Calculating Process Capability–Continuous
Data
What is the process capability for a process that has:
 Mean = 5
 Standard Deviation = 2
 Upper Spec. Limit = 9
Graphically Analyze Data–Breakout Activity (20
minutes)
Desired Outcome: Graphical Analysis of YOUR Project Y Data
What How Who Timing
Run  Use the Run Chart tool in Minitab to investigate All 5 mins.
Chart the variation in the project Y data over time.
Shape, Normality,  Use the Normal Probability Plot in Minitab to All 10 mins.
Central Tendency analyze the shape of the project Y data
And Spread
 Use the Descriptive Statistics tool in Minitab to
analyze the shape, normality, central tendency and
spread of the project Y data
 Use the Minitab Six Sigma Process Report to
calculate Process Sigma
Solutions  You can check your answers using the solution All 5 mins.
sheets on the following pages
We always analyze the data this way:

1. Look at Stability–Is the process Stable?
2. Look at Shape–Do I have a normal distribution?
3. Look at the Spread–What measure of dispersion should I use?
Recall from our Case Study:
Traget *(More or Less) = (Target)–(Actual)
±
* Spec for time = Target.
Minitab Six Sigma Process Report
Process Capability of Extra Hrs

(using 95.0% confidence)
LSL
P rocess Data Within
LSL 0.5 Overall
T arget *
USL * P otential (Within) C apability
Sample Mean 2.31714 Z.Bench *
Sample N 175 Low er C L *
StDev (Within) 0.0786684 Upper C L *
StDev (O v erall) 0.598501 Z.LSL 23.10
Z.USL *
C pk 7.70
Low er C L 6.81
Upper C L 8.59
C C pk 7.70
O v erall C apability
Z.Bench 3.04
Low er C L 1.99
Upper C L 6.39
Z.LSL 3.04
0.6 1.2 1.8 2.4 3.0 3.6 4.2 Z.USL *
O bserv ed P erformance Exp. Within P erformance Exp. O v erall P erformance P pk 1.01
P P M < LSL 0.00 P P M < LSL 0.00 P P M < LSL 1198.08 Low er C L 0.90
P P M > USL * P P M > USL * P P M > USL * Upper C L 1.13
P P M T otal 0.00 P P M T otal 0.00 P P M T otal 1198.08 C pm *
Low er C L *
The Normal Curve And Capability
Poor Design Capability
High
Probability High
of Defects Probability of
Defects
Good Design
Capability
LSL USL
Low Low
Probability Probability
of Defects of Defects
LSL USL
Summary–Z-Value
– Basic statistical summaries, histograms, dotplots, boxplots, and run charts are used to
visualize data and better understand a process
– The Z–Value is a non-dimensional quantity that enables us to compare different
processes–it represents the process capability
– The Z–Value is the number of standard deviations that will fit between the mean and the
respective specification limit of a normal distribution
– The Z–Value corresponds to yield, or the area under the curve inside the specification
limits
Definitions
 Unit (U)
– The number of parts, sub-assemblies, assemblies, or systems inspected or tested
– Squares: 4 units
 Opportunity (OP)
– A characteristic you inspect or test
– Circles: 5 opportunities per unit
 Defect (D)
– Anything that results in customer dissatisfaction. Anything that results in a non-conformance.
– Black circles: 9 defects
Formulas
Defects per Unit
DPU = D/U
9/4 = 2.25
Total Opportunities
TOP = U*OP , 4*5 = 20
Defects per Opportunity (Probability of a Defect)
DPO = D/TOP , 9/20 = .45
Defects per Million Opportunities
DPMO = DPO*1,000,000.45*1,000,000 = 450,000

Converting DPMO To Z
Longterm Actual Reported
ZST = Sigma DPM

500,000
O Sigma(longterm)
0
Sigma(short term)
1.5
460,172 0.1 1.6
420,740 0.2 1.7
382,089 0.3 1.8
Capability
344,578 0.4 1.9
308,538 0.5 2
274,253 0.6 2.1
241,964 0.7 2.2
211,855 0.8 2.3
184,060 0.9 2.4
158,655 1 2.5
135,666 1.1 2.6
115,070 1.2 2.7
96,801 1.3 2.8
80,757
66,807
1.4
1.5
2.9
3
ZZ DPMO
DPMO
54,799 1.6 3.1
44,565 1.7 3.2
35,930
28,716
1.8
1.9
3.3
3.4 2 308,538
22,750
17,864 2.1
2 3.5
3.6 3 66,807
13,903 2.2 3.7
10,724 2.3 3.8 4 6,210
8,198 2.4 3.9
6,210
4,661
2.5
2.6 4.1
4 5 233
3,467
2,555
2.7
2.8
4.2
4.3
6 3.4
1,866 2.9 4.4
1,350 3 4.5
968 3.1 4.6
687 3.2 4.7
483 3.3 4.8
337 3.4 4.9
233 3.5 5
159 3.6 5.1
108 3.7 5.2
72 3.8 5.3
48 3.9 5.4
32 4 5.5
21 4.1 5.6
13 4.2 5.7
9 4.3 5.8
5 4.4 5.9
3.4 4.5 6
First Pass vs. Final Yield
Example
Errors Detected
28 – Wrong amount
14 – Wrong address
12 – Improper accounting
30 Invoices
code
Mailed Late
Prepare Review Fix Mail

Invoice 500
Invoice Errors Invoice
Preliminary
Invoices 470 Invoices
Mailed On-Time
446 Accurate Invoices
Customer CTQs
 Invoice mailed on date specified
 Invoice is error free
– Correct address
– Correct amount
Summary–Discrete Data Process Capability
– Define Defects, Units and Opportunities with your team. Be sure the definitions make sense and are consistent with
similar processes and customer definitions.
– Defects will be stated as Defects Per Million Opportunities. Discrete data is generally considered long-term data.
– For discrete data, Minitab Six Sigma Product Report is used to calculate capability from defects and opportunities
– Determine DPMO (which is long-term), then determine the corresponding Z–value (ST capability)
Step Description
Define
Step 5: Assess Risk
Measure
Step 4: Establish Current Process Capability
Analyze
Step 3: Define Performance Objectives
Improve
Step 3: Develop Implementation Plan
Control
Step 3: Assess Potential Problems
Identification of Variation Sources
Analyze – Identify Variation Sources
What does it mean to Identify Variation Sources?
In step you develop a list of statistically significant X’s, chosen based on analysis of historical data. This list is then prioritized to identify those X’s that have the
most impact on the project Y. The question in this step is “What are the variables that are preventing us from reaching our goal?” You will identify all possible
X’s before selecting the Critical (or Vital Few) X’s in the next step.
Why is it important to Identify Variation Sources?

The output of a process (Y) is a function of the input sources of variation (X’s). In other words, you can change the output of a process (Y) only by changing the input
& process variables (X’s). Therefore, in order to improve products and processes, you must shift your focus from monitoring the outputs of a process (Y’s) to
optimizing the inputs to the process and correcting the root causes of defects (X’s). You should use data and process analysis to identify potential X’s, and not
make any assumptions.
What are the project tasks for completing Analyze 6?

1 Identify possible causes of variation
2 Narrow list of potential causes
Identify The Vital Few
Transfer Function
Y = f (X)
Project Relationship Process

Y that explains variables
Y in terms of
X
Understanding the ƒ gives Insight into the Vital Few

X’s
Terminology
Independent Variables–X’s
 Also called factors
 Factors or variables we select in advance
 The causes
Project Y
Dependent
Independent X
(5M’s and 1P)
Dependent Variable–Y
 Also called responses
 The quantity (Y) that we measure to determine
the impact of the X’s
 The effect (x) (x) (x)
M M M
Project Y
P M M
(x) (x) (x)
165
Bridging The Real World
Problem
Solving Practical
PracticalProblem
Problem
Flow State current process sigma.
Statistical
StatisticalProblem
Problem
Identify distribution’s characteristic
causing current process sigma: shape,
center and/or spread.
Statistical
StatisticalSolution
Solution
Find X’s that lead to better process
sigma: Identify the levels of X’s
Practical
Practical Solution
Solution
Identify process change that
incorporates statistical solution
© 1994 Dr. Mikel J. Harry V3.0
166
The Nature Of Statistical Problems
Problem with Spread
Desired
Current
Accurate
Accuratebut
butnot
notPrecise
Precise Situation
LSL
LSL TT USL
USL
Problem with Centering

Current
Desired Situation
Precise
Precisebut
butnot
notAccurate
Accurate Off Target
LSL
LSL TT USL
USL
δ
167
Using Statistics To Solve Problems
Goal: To find the relationship

Y = ƒ (X1, …, Xn)
µ
P(x)
Data-Driven Analysis
168
Identify The Vital Few
Process
Input
Measure Outputs
s (Y’s)
(X’s)
X X X X
Process Measures
(X’s)
Analyze 1.1: Identify Possible Causes of Variation
Content Flow
• Identify Sources of Variation

• Brainstorm for Possible sources of Variation – Fishbone Diagram, 5-Why
• Prioritize all Possible Xs – Control/Impact Matrix
• Validate Prioritized Xs
• Validation of Process as X
• Type of Work – Waste
• Nature of Work – VA/NVA/VE
• Flow of Work – Sub Process Map
• Data Analysis
• Hypothesis Testing
• List of Validated Xs
Methods To Identify Possible Sources Of Variation
Methods To Identify Vital X’s

Graphical Process Map Analysis
Analysis
Machines Methods Materials
Problem
Statemen
t
Measurement Mother Nature
People
How to Start…
1
Problem
Start Here
Statement
Measurement Mother Nature People
Graphical
Or Here Analysis
And Machines Methods Materials
Again Here Problem

Statement
How to Start…
2
Problem
Start Here
Statemen
t
2.1
IMPACT
High Medium Low
C In Our
O Control
N
T
R
O Out Of
L Our
Control
Always Verify with Data/Process

Analysis
How to Start…
2
Problem
Start Here
Statemen
t
2.1
Drill Down for Analysis of -

• Measurement process
• Processing/Method
• Processes around above
factors
Process Map Analysis

Review: Graphical Analysis
Looking For Patterns In Data
Continuous Y Discrete Y
Boxplot Pareto Chart

Scatterplot
Histogram
Process Map Analysis
Types Of Analysis
Type of Work – waste Identification

Nature of Work
Flow of Work
Nature Of Work–Value Analysis
Value-Added Work Nonvalue-Added Work
Steps That Are Steps That Are

Essential Because Considered Non-Essential
They Physically To Produce And Deliver
Change The The Product Or Service To
Product/Service, The Meet The Customer’s
Customer Is Willing Needs And Requirements.
To Pay For Them, And The Customer Is Not
They Are Done Right Willing
The First Time. To Pay For Them.
Steps That Are Not
Essential To The
Customer, But That
Allow The Value-
Adding Tasks To Be
Done Better/Faster.
Value-Enabling Work
Types Of Non value–Added Work
Internal Failure Delay
External Failure Preparation/Set-Up
Control/Inspection Move
What Does The Customer Value?

Flow Of Work
Process Time
+ Delay Time
Cycle Time
Flow Of Work–Process Disconnects
Gaps
Redundancies
Implicit or unclear requirements
Inefficient hand-offs
Conflicting objectives
Common problem areas
Flow Of Work–”Be The Unit”
Unclear
requirements
1. Receive
Are we Yes
application in 11. Make loan extending
mail and open Redundancy decision loan?
envelope
No 12. Generate
2. Place 10. Review for
Inefficient loan packet
application in completeness 19. Generate
hand-off
mail slot and make turndown letter
decision
3. Move 9. Queue 13. Place in 18. Postman

application to application for out-box picks up
Entry Dept. credit review outbound mail
Unclear
requirements Inefficient
4. Place 14. Move to 17. Place in
8. Score hand-off
application in mailroom outbound mail
application
in-box basket
5. Retrieve 7. Enter
Yes 15. Wait for 16. Post
application and Is application application
postage package or
review for complete? to computer
letter
completeness system
No
6. Call to obtain
necessary
information
Linking Value Analysis With Process Flow
Summarized Analysis
% %
Process Step 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Total Total Steps
Est. Avg. Time (Mins) 1 120 15 120 3 180 7 1 120 5 10 15 90 15 120 2 120 5 8 957 100%
Value-Added
     48 5.0%
Nonvalue-Added
 180 18.8%
Internal Failure
External Failure
  8 .8%
Control/Inspection
      690 72.1%
Delay
Prep/Set-Up
  30 3.1%
Move
 1 .1%
Value-Enabling
957 100%
Total
Review: Cause & Effect Diagrams
A Visual Tool Used By An Improvement Team To Brainstorm And Logically Organize Possible Causes
For A Specific Problem Or Effect
Potential High-Level Causes Problem

Statement

Cause & Effect Diagrams–The Five Why’s
The “Five Why’s” Drill Deep Into The Process To Identify
Potential Root Cause(s)
Ask “why” five times to identify deeper causes

Use process data to answer each “why” question
Prioritization Of X’s–Control/Impact Matrix
IMPACT
High Medium Low
C In Our
O Control
N
T
R
O Out Of
L Our
Control
Always Verify with Data

Prioritization Of X’s–Control/Impact Matrix (continued)
Example
Why Is There Difference
In The Variation In Cycle
Time Between Small
And Medium Loans?
Measure- Mother People

ments Nature
IMPACT
High Medium Low
 Too many
defects
 Complicated  Too long for  Complexity
C In Our form customer  Evaluation
Control  Too much number of risk
O review worthiness
Duplication
N 
of effort
T
R  Too long to  Not enough
O Out Of get credit
report
staff
Not well
Our Control 
L trained
Prioritization Of X’s–Control/impact Matrix
IMPACT
High Medium Low
C In Our
O Control
N
T
R
O
L Out Of
Our
Control
Analyze 1.2
Narrow list of Potential Causes
Hypothesis Testing–Introduction
– Refers to the use of statistical analysis to determine if observed differences between two
or more data samples are due to random chance or to be true differences in the samples
– Increase your confidence that probable X’s are statistically significant
– Used when you need to be confident that a statistical difference exists
Hypothesis Testing For Equal Means
The histograms below show the height of inhabitants of countries A and B.
Both samples are of size 100, the scale is the same, and the unit of measurement is inches.
Question: Is the population of country B, on average, taller than that of country A?
Country A
Country B
60.0 62.0 64.066.0 68.0 70.0 72.0 74.0 76.0 78.0 80.0
[inch]
Concepts Of Hypothesis Testing
1. All processes 2. Samples from one

have variation. given process may
vary.
3. How can we differentiate

between sample–based
“chance” variation and a true
process difference?
Kinds Of Differences
Continuous data:
Differences in averages
Differences in variation
Differences in distribution
“shape” of values
Discrete data:
Differences in proportions
Hypothesis Testing
Guilty vs. Innocent Example
The American justice system can be used to illustrate the

concept of hypothesis testing.
In America, we assume innocence until proven guilty.

This corresponds to the null hypothesis.
It requires strong evidence “beyond a reasonable doubt”

to convict the defendant. This corresponds to rejecting the null hypothesis and accepting the alternate hypothesis.
Ho: person is innocent

Ha: person is guilty
Activity–Hypothesis Statements
(10 minutes)
Write the null and alternate hypothesis testing statements for each scenario below:
Scenario 1: You have collected data on the number of defects seen in products from supplier A and
supplier B. You wish to test whether or not there is a difference in defects from supplier A and B.
Null hypothesis statement :
Alternate hypothesis statement:
Scenario 2: You suspect that there is a difference in cycle time to process purchase orders in site 1 of
your company compared to site 2. You are going to perform a hypothesis test to verify your hypothesis.
Scenario 3: You purchase resins to be used in your company's manufacturing processes. You suspect
that suppliers who use higher temperatures to cure the resin are able to cure the resins faster.
Scenario 4: You have implemented process improvements to reduce the cycle time to process
purchase orders in your company. You have collected cycle time before the process improvements
and after the process improvement was implemented. You are going to perform a hypothesis test to
verify that the process improvements have resulted in a reduction in cycle time.

Hypothesis Testing
Guilty vs. Innocent Example
The only four possible outcomes:
1. An innocent person is set free. Correct decision

2. An innocent person is jailed. Type I error α
– The probability of this type of error occurring we represent as
3. A guilty person is set free Type II error β
– The probability of this type of error occurring we represent as
4. A guilty person is jailed. Correct decision
Hypothesis Testing–Another View
Ho: Person is innocent. Truth

Truth
Ha: Person is guilty.
Ho Ha
Innocent Guilty
Ho Innocent, Guilty,
Set Free Set Free
Set Free Type II
β
Verdict
Verdict
Innocent, Guilty,
Ha Jailed Jailed
Jailed Type I
α
Hypothesis Testing
P-value
 The probability of making a Type I error (concluding that there is a statistical difference between samples when there
is no difference).This value ranges from 0.0–1.0
 Typically set Type I error probability of = 0.05–P-value less than 0.05 means we reject the null hypothesis and
accept the alternate hypothesis
p < α : Reject Ho
p α : Accept Ho
≥
Statistical Tests In Minitab
Some basic statistical tests are shown below with the command for running each test in Minitab.
What The Tool Tests Statistical Test Graphical Test
Histogram
Mean of population data is 1-Sample t-test
different from an established Stat > Basic Statistics
target. > 1-Sample t
Histogram
Mean of population 1 is 2-Sample t-test
different from mean of Stat > Basic Statistics
population 2. > 2-Sample t
The means of two or more 1-Way ANOVA

Histogram
populations is different. Stat > ANOVA > One-Way
Variance among two or more Homogeneity of Box

populations is different. Variance Plots
Stat > ANOVA > Homogeneity
of Variance
Output (Y) changes as the Linear
input (X) changes. Regression Scatter
Stat > Regression >Fitted Line Plots
Plot
Frequency
Output counts from two two or Chi-Square Test Pareto
more subgroups differ. of Independence
Stat > Tables >
Cross Tabulation OR C AB D E M NO
Category
Chi-Square Test
Data is normally
Normality Test
distributed Stat > Basic
Statistics
Select A Statistical Test
Hypothesis tests to find relationships between project Y and potential X’s
Y
Continuous Discrete
Continuous Simple Linear

Regression
X 2 Sample t-Test
Discrete (Compare Means of two
samples) Chi-Square Test
ANOVA (Compare means
of multiple samples)
Homgeneity of Variance
(Compare variances)
Hypothesis Test Summary
Normal Data Non-normal Data
Variance Tests Variance Tests
F–test-–Compares two sample variances. Homogeneity of Variance Levene’s–
Homogeneity of Variance Bartlett’s– Compares two or more sample
Compares two or more sample variances variances.
Means Tests Medians Tests
t–Test 1–sample–Tests if sample mean is Mood’s Median Test–Another test for two
equal to a known mean or target. or more medians. More robust to
t–Test 2–sample–Tests if two sample means outliers in data.
are equal. Correlation–Tests linear relationship
ANOVA One Way–Tests if two or more between two variables.
sample means are equal.
ANOVA Two Way–Tests if means from
samples classified by two categories are
equal.
Correlation–Tests linear relationship between
two variables.
Regression–Defines the linear relationship
between a dependent and independent
variable. (Here, “Normality” applies to
the residuals of the regression.)
Choosing The Correct Hypothesis Test
Is the data NO
normal?
Mood’s Median Note: In order to use this chart, we
are assuming our X’s are discrete.
HOV Otherwise, use Regression. (1x =
YES Simple Linear Regression While
Multiple X’s Would use Multiple
Linear Regression).
Are Y’s NO CHI
Continuous?
SQUARE
YES
Comparing NO
Only 2 ANOVA
Groups? HOV
YES
Are We
Can I Match NO Comparing To NO
X’s With X’s? A Standard?
2 Sample t
HOV
YES YES
Paired t 1 Sample t
Hypothesis Testing Procedure
Ho: There is no difference between Population A and B
1. Write the null hypothesis

μpop1 =μpop2
Team
preparation
2. Write the alternate hypothesis
HA: There is a difference between Samples A and B
μpop1 ≠μpop2
3. Decide on the alpha level α =.05 (typical for DMAIC projects)
4. Chose hypothesis test Choose the correct test, given the type of X and Y data.
5. Gather evidence and test/conduct Collect data, run analysis, get p-value
analysis
If p ≥ 0.05 conclude, no difference between populations
6. Decide to Reject H0, or not reject H0, and If p < 0.05 conclude, the populations are different
draw conclusion
1-Sample Hypothesis
1. Ho : µ = constant = T
Ha : µ ≠ constant = T
Ho Ha
2. Ho : σ 2
= constant = T
Ha : σ 2
≠ constant = T
Review: Scatter Plots
R-value
y r = –1.0 y r = +1.0
x x
r = +.7 r = –.7
y y
x x
y r=0 y r=0
x x
Simple Linear Regression
– We have shown/talked about positive and negative correlation of two data sets
– Regression analysis is a statistical technique used to build the Y = ƒ(x) relationship between two or
more variables. The model is often used for prediction.
– Regression is a hypothesis test. Ha: The “X” is a significant predictor of the response.
– It may be used to analyze relationships between the “X’s”, or between “Y” and “X”
– Regression is a powerful tool, but can never replace process knowledge about trends
Simple Linear Regression
Y = b 0 + b 1 X1
Ha: The model is a significant predictor of the response.

Y
b0 = Predicted value of Y when X1 = 0
b1 = Slope of line change in Y per unit
change in X1
Minitab File: GB case study.mtw
Null Hypothesis: There is no correlation between our continuous Y

metric (time) and a continuous X metric (distance)
Minitab Command: Stat > Regression > Fitted Line Plot

Chi-Square Test
Y
Continuous Discrete
Continuous
X
Discrete
Chi-Square Test
Chi-Square Tests
The Chi-Square Tests

Used for:
1 - Goodness-of-Fit Test: To test if an observed set of data fits
a model (an expected set of data)
2 - Test of Independence: To test hypothesis of several
proportions (contingency table)
It’s for discrete data, any number of

categories
For all cases, Ho: no difference in data
Ha: difference exists
χ 2

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six sigma project new capacity justified.

six sigma project web design.

Entitlement As good as a process can get without Re-design

Step 1: Brainstorm potential solutions

Customer wants and

 Who’s the customer?  What’s the business strategy?

CTQs for Ramp Process Excluded

Defects – 210, Volume - 89610

Additional YB Trg Conducted

Issues in selecting a project:

 Feasibility (Is it doable?)

 Potential for improvement

 Resource support within the organization

Answer the following questions as they relate to your project:

–Take Always-Identify Project CTQ’s

Step 2: Define the Project

Step 3: Define Process map

Step 4: Build Team & Commitment

Step 5: Assess Risk

 Customer–Whoever receives the output of your process

 Output–The material or data that results from the operation of a process

Definition: What is critical to the quality of the process

Key VOC tools:

 For your project:

 What tool did you can use for capturing VOC?

 List all customers and the segment(s) from which

Sub-Process/ Sub-Process/ Sub-Process/

Process 1 Process-Based Projects

Important To Our Customer

Level 2 CTQ Knowledgeable Accessible Accurate Fast

Step 2: Define the Project

Step 3: Define Process map

Step 4: Managing Change & Build Commitment

Step 5: Assess Risk

 Problem and Goal Statements

 Why is the project worth doing?

The purpose of the Problem Statement is to describe what is

The Goal Statement then defines the team’s

Problem & Goal Statements Together provide focus

– What is wrong or not meeting our customer’s

Key Considerations/Potential Pitfalls

A methodology for evaluation is called “SMART.”

This acronym is a checklist to ensure that the charter

 What process will the team focus on?

 How do you want the Sponsor to work with the team?

Work How Who Time

Critique  Exchange problem and goal statements All 15 min.

Close Exercise  Brainstorm key challenges in preparing Facilitator 5 min.

 Choose a spokesperson to report your All

Step 2: Define the Project

Step 3: Define Process map

Step 4: Managing Change & Build Commitment

Step 5: Assess Risk

Processes must have steps that repeat each time the

Processes can be defined as either core or enabling.

– Enabling processes: series of tasks and activities that

– Understand business processing mapping and its Application to

– Learn the key process elements

– Learn the importance of process boundaries and process owners

– Understand the benefits of process mapping

– Understand the steps of process mapping

Process Mapping Is the Graphic Display of Steps, Events and Operations