SixSigmaPreCourseMaterial

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TableofContents
TableofContents...................................................................................................................................................2 1SixSigmaOverview..............................................................................................................................................3 1.1 1.2 1.3 1.4 WhatisSixSigma? ................................................................................................................................3 . HistoryofSixSigma...............................................................................................................................4 KeyBusinessDrivers .............................................................................................................................4 . SixSigmaProjectSelectionProcess......................................................................................................6

2LeanPrinciplesOverview.....................................................................................................................................7 2.1 2.2 2.3 2.4 Whatis5S?............................................................................................................................................7 WhatisKaizen?...................................................................................................................................8 WhatisPokaYoke?...............................................................................................................................9 Whatare7WastesinLean? ...............................................................................................................10 .

3DMAICOverviewDPhase................................................................................................................................13 3.1 3.2 3.3 3.4 ObjectivesofDefinePhase ................................................................................................................13 . ProjectCharter....................................................................................................................................13 . TeamRoles&Responsibilities ...........................................................................................................16 TeamTools.........................................................................................................................................18

4DMAICOverviewMPhase...............................................................................................................................20 4.1 4.2 4.3 ObjectivesofMeasurePhase.............................................................................................................20 ProcessMaps.....................................................................................................................................20 DataCollection&Summarization......................................................................................................23

5DMAICOverviewAPhase................................................................................................................................27 5.1 5.2 ObjectivesoftheAnalyzePhase........................................................................................................27 GenerationofPotentialSolutions.......................................................................................................27

6DMAICOverviewIPhase.................................................................................................................................29 6.1 6.2 6.3 6.4 6.5 ObjectivesoftheImprovePhase.......................................................................................................29 SolutionSelection ..............................................................................................................................29 . JohnKotters8StepChangeManagementPlan.................................................................................30 ChangeManagementIssues...............................................................................................................30 StagesofaTeam.................................................................................................................................32

7DMAICOverviewCPhase................................................................................................................................33 7.1ObjectivesoftheControlPhase.................................................................................................................33 7.2ToolstoSustainImprovements..................................................................................................................33 8Appendix:BasicProbability...............................................................................................................................37 Probability density function (PDF).......................................................................Error!Bookmarknotdefined. BinomialDistribution.......................................................................................................................................37 9CommonSixSigmaAcronyms...........................................................................................................................40 . 10Importantlinksforonlinelearninganddiscussion .........................................................................................41

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1SixSigmaOverview
1.1 WhatisSixSigma?
Sigma is the Greek letter representing a statistical unit of measurement that defines the standard deviation of a population. It measures the variability or spread of the data. The lowerthevariabilityinaprocess,themoreoftheprocessoutputs,productsandservices, meetcustomersrequirementsor,thefewerthedefects. Six Sigma is a vehicle for strategic change ... an organizational approach to performance excellence. Six Sigma is important for business operations because it can be used both to increasetoplinegrowthandalsoreducebottomlinecosts.SixSigmacanbeusedtoenable: 1. Transformationalchangebyapplyingitacrosstheboardforlargescalefundamental changes throughout the organization to change processes, cultures, and achieve breakthroughresults. 2. Transactionalchangebyapplyingtoolsandmethodologiestoreducevariationand defectsanddramaticallyimprovebusinessresults. WhenpeoplerefertoSixSigma,theyrefertoseveralthings: Itisaphilosophy Itisbasedonfacts&data Itisastatisticalapproachtoproblemsolving. Itisastructuredapproachtosolveproblemsorreducevariation Itrefersto3.4defectspermillionopportunities Itisarelentlessfocusoncustomersatisfaction Strongtieinwithbottomlinebenefits

ThetwomostcommonusedmethodologiesareDMAIC&DMADV1: 1. DMAIC:Define,Measure,Analyse,ImproveandControl 1

Structuredandrepeatedprocessimprovementmethodology Focusondefectsreduction Improvementsinexistingproductsandprocesses

SomecompaniesuseanequivalentmethodologycalledIDOV(IdentifyDesignOptimizeVerify)

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2. DMADV:Define,Measure,Analyse,Design,Verify/Validate - Strictapproachtodesignprocesstoexceedcustomerexpectations - Focusonpreventingerrorsanddefects. - Developnewproduct/process,orredesignexistingproduct/process. - IfDMAICdoesnotproducesufficientimprovements,weuseDMADV.

1.2

HistoryofSixSigma

In the late 1970's, Dr. Mikel Harry, a senior staff engineer at Motorola's Government Electronics Group (GEG), experimented with problem solving through statistical analysis. Usingthisapproach,GEG'sproductswerebeingdesignedandproducedatafasterrateand atalowercost.Subsequently,Dr.HarrybegantoformulateamethodforapplyingSixSigma throughoutMotorola.In1987,whenBobGalvinwastheChairman,SixSigmawasstartedas amethodologyinMotorola.BillSmith,anengineer,andDr.MikelHarrytogetherdeviseda 6stepmethodologywiththefocusondefectreductionandimprovementinyieldthrough statistics.BillSmithiscreditedasthefatherofSixSigma.Subsequently,AlliedSignalbegan implementing Six Sigma under the leadership of Larry Bossidy. In 1995, General Electric, under the leadership of Jack Welch began the most widespread implementation of Six Sigma.

Dr.MikelHarry BillSmithLarryBossidyJackWelch

General Electric: It is not a secret society, a slogan or a clich. Six Sigma is a highly disciplinedprocessthathelpsfocusondevelopinganddeliveringnearperfectproductsand services.SixSigmahaschangedourDNAitisnowthewaywework. Honeywell:SixSigmareferstoouroverallstrategytoimprovegrowthandproductivityas wellasaqualitymeasure.Asastrategy,SixSigmaisawayforustoachieveperformance breakthroughs.Itappliestoeveryfunctioninourcompanyandnotjusttothefactoryfloor. ThetoolsusedinSixSigmaarenotnew.SixSigmaisbasedontoolsthathavebeenaround foraroundforcenturies.Forexample,SixSigmareliesalotonthenormalcurvewhichwas introducedbyAbrahamdeMoivrein1736andlaterpopularizedbyCarlFriedrichGaussin 1818.

1.3

KeyBusinessDrivers

The Key Performance Indicators (KPIs) that are tracked by businesses to measure its progress towards strategic objectives is usually displayed together on a scorecard. This scorecardisreviewedbymanagementonatleastamonthlybasistoidentifyproblemareas
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and take corrective actions as needed. There are four primary areas within a scorecard: Financial, Customer, Internal Business Processes, and Learning & Growth. Some indicators are lagging indicators in the sense that they talk about what has already occurred. An example of a lagging indicator is Revenue in the last quarter. It can be an important indicatorforthebusinesstoknowaboutbutitdoesnottellthefullstoryofwhatisgoingto happen in the future. Hence, scorecards must also contain indicators that predict future performance.Theseindicatorsarecalledleadingindicators.Forexample,ifweknowthatall employees are trained 20 hours this year, this could be a leading indicator of future employee performance. Following are some traditional KPIs that businesses track within theirscorecard: FinancialIndicators Revenue(amountofmoneycollectedbysellingproductsorservices) CostofGoodsSold(amountofmoneyexpendedtoproduceproductsorservices) GrossIncome(differencebetweenRevenue&CostofGoodsSold) NetIncome(profitabilityofthecompanyaftersubtractingallexpenses) PercentageofIndustrySales(PINSindicatorofmarketshare) Earnings per Share (EPS Net income divided by number of outstanding shares. Indicatorofreturnearnedbyeachshareholder) CashFlow(Amountofmoneyearnedvs.spentduringtheindicatedperiod)

CustomerIndicators Customer Returns (Amount of $$ returned by customers an indicator of how satisfiedcustomersarewithproducts/services) Warranty(Morethemoneyspentonwarranty,lesssatisfiedarethecustomers) Net Promoter Score (NPS will our customers recommend us to others based on surveyresults) Ontimedelivery(%ofproducts/servicesdeliveredontime) NumberofComplaintsReceived CustomerChurn

InternalBusinessProcesses Efficiency(Productivityindicatorforkeyresources)

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NewProductIntroductionCycleTime(Timetakenfordevelopmentofnewproducts) NetRevenuebyProduct(Indicatorofwhichproductscontributetorevenuesome companiesmayrequirenewproductsgenerateatleast20%revenue) MaterialorProductionCosts QualityIndicators(Rework) ProductionCycleTime

Learning&Growth TrainingperEmployee LabourProductivity StaffTurnover SpeedofPromotion SixSigmaorLeanBenefits

1.4

SixSigmaProjectSelectionProcess

Ideally, Green Belts and Black Belts are expected to work on projects and are not directly responsibleforgenerationorselectionofSixSigmaprojects.SixSigmaprojectsareselected by senior management on certain criteria. These criteria include linkage between the proposedprojectandcompanystrategy,expectedtimelineforprojectcompletion,expected revenuefromtheprojects,whetherdataexiststoworkontheproblem,whethertheroot causeorsolutionisalreadyknown.Table1showsatypicalprojectselectiontemplateused bymanagementtopickprojects.Theprojectsthathavethehighestnetscorearetheones thatgetpickedforexecution.

Table1:ExampleProjectSelectionTemplate

For a project to be a valid Six Sigma project it must be a chronic issue, it must have an unknownrootcauseandunknownsolution.Forifthesolutionisalreadyknown,thereisno point wasting everyones time to do data analysis and determine the root cause and solution.Allthatisneededistojustdotheimplementationofthesolution.

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2LeanPrinciplesOverview
Lean is a philosophy that seeks to minimize the working capital required to produce a product or provide a service. In other words, the value added time through a process should dramatically outweigh the nonvalue added time. Lean is all about eliminating wastesfromaprocessandmakingtheproductorserviceflow. LeanfocusesonwasteeliminationwhileSixSigmafocusesonreductionofvariation.Lean Six Sigma is the application of the DMAIC methodology, supplemented with concepts extracted from the principles of lean. Combined together, they provide a sustainable processforincreasingvelocity,managinginventory/capacityandreducingwaste.Following aresomebasicoverviewofLeantools&principles:

2.1 Whatis5S?
5S is a process and method for creating and maintaining an organized, clean, and high performance workplace. 5S enables anyone to distinguish between normal and abnormal conditionsataglance.5Sisthefoundationforcontinuousimprovement,zerodefects,cost reduction, and a safe work area. 5S is a systematic way to improve the workplace, our processesandourproductsthroughproductionlineemployeeinvolvement.5Scanbeused inSixSigmaforquickwinsaswellascontrol.5SshouldbeoneoftheLeantoolsthatshould be implemented first. If a process is in total disarray, it does not make sense to work on improvements.Theprocessneedstobefirstorganized(stabilized)andthenimproved. The5Ssare: 1. Sort Clearly distinguish needed items from unneeded items and eliminate the latter. 2. Straighten/Stabilize/SetinOrderKeepneededitemsinthecorrectplacetoallow foreasyandimmediateretrieval 3. ShineKeeptheworkareaclean 4. StandardizeDevelopstandardizedworkprocessestosupportthefirstthreesteps 5. SustainPutprocessesinplacetoensurethatthatthefirstfourstepsarerigorously followed.

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Figure1:5SImagefromwww.tpfeurope.com

2.2 WhatisKaizen?
Kaizen is a Japanese word that means to break apart to change or modify (Kai) to make thingsbetter(Zen).Kaizenisusedtomakesmallcontinuousimprovementsintheworkplace toreducecost,improvequalityanddelivery.Itisparticularlysuitablewhenthesolutionis simple and can be obtained using a team based approach. Kaizen assembles small cross functionalteamsaimedatimprovedaprocessorprobleminaspecificarea.Itisusuallya focussed35dayeventthatreliesonimplementingquickanddoitnowtypesolutions. Kaizenfocusesoneliminatingthewastesinaprocesssothatprocessesonlyaddvalueto thecustomer.Someofthe7wastestargetedbyKaizenteamsare: Waiting/Idle Time/Search time (look for items, wait for elements or instructions to be delivered) Correction(defects/rework&scrapdoingthesamejobmorethanonce) Transportation(excessmovementofmaterialorinformation) Overproduction(buildingmorethanrequired) Overprocessing(processingmorethanwhatisrequiredorsufficient) ExcessMotion(excesshumanmovementsatworkplace) Storage/warehousing(excessinventory)

The benefits of doing Kaizen are less direct or indirect labour requirements, less space requirements, increased flexibility, increased quality, increased responsiveness, and increased employee enthusiasm. Figure 2 shows a Kaizen team in action discussing improvements.

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Figure2:AKaizenTeamatBoeinginAction

2.3 WhatisPokaYoke?
Pokayokeisastructuredmethodologyformistakeproofingoperations.Itisanydeviceor mechanism that either prevents a mistake from being made or ensures that the mistakes dontgettranslatedintoerrorsthatthecustomersseeorexperience.Thegoalofpokayoke is both prevention and detection:errors will not turn into defects if feedback and action takeplaceattheerrorstage.(ShigeoShingo,industrialengineeratToyota.Heiscredited with starting Zero Quality Control). The best operation is one that both produces and inspectsatthesametime.Figure3showsaPokaYokedevicewhichpreventsafloppydisk frombeingputinthewrongwayintothecomputer. TherearethreeapproachestoPokaYoke: Warning(lettheuserknowthatthereisapotentialproblemlikedoorajarwarning inacar) Control (automatically change the process if there is a problem like turn on windshieldwipersincaseofraininsomeadvancedcars) Shutdown(closedowntheprocesssoitdoesnotcausedamagelikedenyaccessto ATMmachinesifpasswordenterediswrong3timesinarow)

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Figure3:PokaYokeExamplethepossibilityofparachutenotopeningneedsto beeliminated

2.4 Whatare7WastesinLean?
The7Wastes(alsoreferredtoasMuda)inLeanare: Overproduction Correction(defects,rework) Inventory Motion Overprocessing Transportation Waiting

Theunderutilizationoftalentandskillsissometimescalledthe8thwasteinLean. Waste 1: Overproduction is producing more than the next step needs or more than the customerbuys.WasteofOverproductionrelatestotheexcessiveaccumulationofworkin process (WIP) or finished goods inventory. It may be the worst form of waste because it contributestoalltheothers.Examplesare: Preparingextrareports Reportsnotacteduponorevenread Multiplecopiesindatastorage Overorderingmaterials Waste2:Correctionordefectsare as obvious as they sound. Waste of Correction includes the waste of handling and fixing mistakes. This is common in both manufacturing and transactionalsettings.Examplesare: Incorrectdataentry Payingthewrongvendor Misspelledwordsincommunications Makingbadproductormaterialsorlabourdiscardedduringproduction

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Waste 3: Inventory is the liability of materials that are bought, invested in and not immediatelysoldorused.WasteofInventoryisidenticaltooverproductionexceptthatit refers to the waste of acquiring raw material before the exact moment that it is needed. Examplesare: Waste 4: Motion is the unnecessary movement of people and equipment. This includes lookingforthingslikedocumentsorpartsaswellasmovementthatisstraining.Wasteof Motionexamineshowpeoplemovetoensurethatvalueisadded.Examplesare: Waste 5: Over processing is tasks, activities and materials that dont add value. Can be caused by poor product or process design as well as from not understanding what the customerwants.WasteofOverprocessingrelatestooverprocessinganythingthatmaynot beaddingvalueintheeyesofthecustomer.Examplesare: Waste6:Transportationistheunnecessarymovementofmaterialandinformation.Stepsin aprocessshouldbelocatedclosetoeachothersomovementisminimized.Examplesare: Extrastepsintheprocess Distancetravelled Movingpaperfromplacetoplace
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Transactionsnotprocessed Biggerinboxthanoutbox Overstockingrawmaterials

Extrasteps Extradataentry Havingtosearchforsomethingforapproval

Signoffs Reportsthatcontainmoreinformationthanthecustomerwantsorneeds Communications, reports, emails, contracts, etc that contain more than the necessary points(conciseisbetter) Voicemailsthataretoolong Duplicationofeffort/reports

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Forwardingemailstooneanother

Waste7: Waitingisnonproductivetimeduetolackofmaterial,people,orequipment.This canbeduetosloworbrokenmachines,materialnotarrivingontime,etc.WasteofWaiting isthecostofanidleresource.Examplesare: Processingonceeachmonthinsteadofastheworkcomesin Waitingonpartofcustomeroremployeeforaserviceinput Delayedworkduetolackofcommunicationfromanotherinternalgroup

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3DMAICOverviewDPhase
3.1 ObjectivesofDefinePhase
Toidentifyand/orvalidatetheimprovementopportunity,developthebusinessprocesses, definecriticalcustomerrequirements,andpreparetobeaneffectiveprojectteam. MainActivities: Validate/IdentifyBusinessOpportunity Validate/DevelopTeamCharter IdentifyandMapProcesses IdentifyQuickWinsandRefineProcess TranslateVoiceoftheCustomer(VOC)intoCriticalCustomerRequirements(CCRs) DevelopTeamGuidelines&GroundRules

KeyDeliverables: TeamCharter(includesActionPlan) HighLevelProcessMaps PreparedTeam

3.2 ProjectCharter
Aprojectcharterisawrittendocumentandworksasanagreementbetweenmanagement andtheteamaboutwhatisexpected.Thecharterclarifieswhatisexpectedoftheteamand keepstheteamfocussedandalignedontheorganizationalpriorities.Ittransferstheproject fromthechampiontotheprojectteam.ElementsofaProjectCharter: OpportunityStatement:PainorProblems BusinessCase:PurposefromBenefitsPerspective GoalStatement:SuccessCriteria ProjectScope:Boundaries ProjectPlan:Activities TeamSelection:WhoandWhat

OpportunityStatement:Theopportunitystatementdescribesthewhyofundertakingthe improvementinitiative.Theproblemstatementshouldaddressthefollowingquestions:
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Whatiswrongornotworking? Whenandwheredotheproblemsoccur? Howextensiveistheproblem? Whatistheimpactpainonourcustomers/business/employees?

Business Case: The business case describes the benefit for undertaking a project. The businesscaseaddressesthefollowingquestions: Whatisthefocusfortheprojectteam? Doesitmakestrategicsensetodothisproject? Doesthisprojectalignwithotherbusinessinitiatives(CriticalSuccessFactors)? Whatbenefitswillbederivedfromthisproject? Whatimpactswillthisprojecthaveonotherbusinessunitsandemployees?

Goal Statement: The goal statement should be most closely linked with the Opportunity statement.Thegoalstatementdefinestheobjectiveoftheprojecttoaddressthespecific painarea,andisSMART(Specific,Measurable,Attainable,RelevantandTimebound).The goalstatementaddresses: Whatistheimprovementteamseekingtoaccomplish? Howwilltheimprovementteamssuccessbemeasured? Whatspecificparameterswillbemeasured?ThesemustberelatedtotheCriticaltoCost, Quality,and/orDelivery(CollectivelycalledtheCTQs). Whatarethetangibleresultsdeliverables(e.g.,reducecost,cycletime,etc.)? Whatisthetimetablefordeliveryofresults?

ProjectScope:Theprojectscopedefinestheboundariesofthebusinessopportunity.Oneof the Six Sigma tools that can be used to identify/control project scope is called the In Scope/OutofScopeTool.ProjectScopedefines: Whataretheboundaries,thestartingandendingstepsofaprocess,oftheinitiative? Whatpartsofthebusinessareincluded? Whatpartsofthebusinessarenotincluded? What,ifanything,isoutsidetheteamsboundaries? Whereshouldtheteamsworkbeginandend?

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ProjectPlan:Theprojectplanshowsthetimelineforthevariousactivitiesrequiredforthe project.SomeofthetoolsthatcanbeusedtocreatetheprojecttimelinearetheNetwork diagram(orPERTchart),theGANTTchartetc. ANetworkdiagram(orPERTchart)helpswithidentificationofthecriticalpathwhichisthe longestpathintheprocess.Anyactivitiesthatgetdelayedonthecriticalpathdirectlyaffect theendpointoftheproject.Intheexamplebelow,theelementAnalyzeRootCauseisnot onthecriticalpathbecauseitsdurationislessthanaparallelactivitythattakeslonger.So, foritemsthatarenotonthecriticalpath,smalldelayswillnotnecessarilyaffecttheproject completiondate.TheCriticalPathMethod(CPM)calculatesthelongestpathinaprojectso that the project manager can focus on the activities that are on the critical path and get themcompletedontime.

AGANTTchartshowsasummaryoftheprojectplan.Ithastaskdetails,resourcedetails,durations, andexpectedstartandstopdatesfortheproject.AGANTTchartcanalsoshow%completed activities(notshowninfigurebelow).Itisagoodvisualindicatoroftheprojectplan.

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3.3 TeamRoles&Responsibilities
YellowBelt: ProvidesupporttoBlackBeltsandGreenBeltsasneeded MaybeteammembersonDMAICteams Supportingprojectswithprocessknowledgeanddatacollection

GreenBelt: IstheTeamLeaderforaProjectwithinownfunctionalarea Selectsothermembersofhisprojectteam DefinesthegoalofprojectwithChampion&teammembers Definestherolesandresponsibilitiesforeachteammember IdentifiestrainingrequirementsforteamalongwithBlackBelt HelpsmaketheFinancialScoreCardalongwithhisCFO

BlackBelt: Leadsprojectthatarecrossfunctionalinnature(acrossfunctional2areas) Endsroleasprojectleaderatthecloseoftheturnovermeeting TrainsothersinSixSigmamethodologies&concepts

Crossfunctionalprojectsaremorecomplextomanageasitinvolvesseveralpeoplefromdifferent departments.Thiswillrequiresignificantchangemanagementeffort,ifnotmanagedwellcouldtakealot longerthanexpected&therearegreaterchancesforfailure.

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SitsalongwiththeBusinessUnitHeadandhelpsprojectselection Providesapplicationassistance&facilitatesteamdiscussions HelpsreviewprojectswithBusinessUnitHead InformsBusinessUnitHeadofprojectstatusforcorrectiveaction

MasterBlackBelt: ParticipatesintheReviewsandensuresproperdirection. TeachesandcoachesProcessOwnersonProcessManagementprinciples

TeamMember: ATeamMemberischosenforaspecialskillorcompetence TeamMembershelpdesignthenewprocess TeamMembersdrivetheprojecttocompletion

SubjectMatterExpert(SME): Isanexpertinaspecificfunctionalarea Maybeinvitedtospecificteammeetingsbutnecessarilyallofthem Providesguidanceneededtoprojectteamsonanasneededbasis

ProjectSponsor: ActsassurrogateProcessOwner(PO)untilanownerisnamed BecomesPOatImprove/DevelopifPOisnotnamed UpdatesTrackerwithrelevantdocumentsandpertinentprojectdata Partofseniormanagementresponsibleforselection/approvalofprojects

ProcessOwner: Takesovertheprojectaftercompletion Managesthecontrolsystemafterturnover TurnsoverPOaccountabilitytothenewProcessOwneriftheprocessisreassignedto anotherareaoranotherindividual

DeploymentChampion: ResponsiblefortheoverallSixSigmaprogramwithinthecompany
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Reviewsprojectsperiodically Addsvalueinprojectreviewssinceheishandsoninthebusiness Clearsroadblocksfortheteam Hastheoverallresponsibilityfortheprojectclosure

3.4 TeamTools
Brainstormingisaneffectivewaytogeneratelotsofideas(potentialsolutions)onaspecific issueandthendeterminewhichideaorideasisthebestsolution.Brainstormingismost effectivewithgroupsof812peopleandshouldbeperformedinarelaxedenvironment.If participants feel free to relax and joke around, they'll stretch their minds further and thereforeproducemorecreativeideas. A brainstorming session requires a facilitator, a brainstorming space and something on which to write ideas, such as a whiteboard a flip chart or software tool. The facilitator's responsibilities include guiding the session, encouraging participation and writing ideas down. Brainstorming works best with a varied group of people. Participants should come fromvariousdepartmentsacrosstheorganisationandhavedifferentbackgrounds.Evenin specialistareas,outsiderscanbringfreshideasthatcaninspiretheexperts. Therearenumerousapproachestobrainstorming,butthetraditionalapproachisgenerally the most effective because it is the most energetic and openly collaborative, allowing participantstobuildoneachothers'ideas. Multivotingisamechanismtonarrowdownthelistofideasandselecttherightsubsetfor further investigation. Each team members is given a certain number of votes which he placesontheideasthathe/shesupportswithminimaldiscussion.Attheendofthevoting by all team members, the ideas which have the highest number of votes is selected for furtherstudy.Thisprocessmayberepeatedtofurthernarrowdownthelist.Table2shows voting results for six different ideas. Based on the votes, ideas 1 and 6 were selected for deployment.
Item 1.Haveameetingagenda 2. Inform participants why they have to attend meeting 3.Havesomeonetakenotesatthemeeting 4.Haveaclearmeetingobjective 5.Reducethenumberoftopicstobediscussedateach meeting 6.Startandendmeetingsontime NumberofVotes

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Table2:MultiVotingExample Nominal Group Technique: A technique that supplements brainstorming. Structured approaches to generate additional ideas, surveys the opinions of a small group, and prioritize brainstormed ideas. The nominal group technique is a decision making method for use among groups who want to make their decision quickly, as by a vote, but want everyone'sopinionstakenintoaccount.First,everymemberofthegroupgivestheirviewof thesolution,withashortexplanation.Then,duplicatesolutionsareeliminatedfromthelist ofallsolutions,andthemembersproceedtorankthesolutions,1st,2nd,3rd,4th,andso on.Thenumberseachsolutionreceivesaretotalled,andthesolutionwiththelowest(i.e. mostfavoured)totalrankingisselectedasthefinaldecision.Figure4showsresultsofthe nominal group technique. Each idea was ranked by several team members. The idea with thelowesttotalscoreisselectedasthewinner.Inthisexample(IdeaN). Structuredtofocusonproblems,notpeople.Toopenlinesofcommunication,tolerate conflictingideas. Builds consensus and commitment to the final result. Especially good for highly controversialissues Nominal Group Technique is most often used after a brainstorming session to help organizeandprioritizeideas

1 Item Number Card Rating Value 6 Idea Scores Idea 1 Totals

8,8,6,7,8,2 6/39 5/25 4/8

Idea 2
6,5,4,7,3

Idea N
3,2,2,1

Figure4:ExampleofNominalGroupTechniquewithIdeasRated Delphi Technique: It is a method of relying on a panel of experts to anonymously select their responses using a secret ballot process. After each round, a facilitator provides the summaryoftheexpertsopinionsalongwiththereasonsfortheirdecisions.Participantsare encouraged to revise their answers in light of replies from other experts. The process is stopped after predefined criteria such as number of rounds. The advantage of this techniqueisthatifthereareteammemberswhoareboisterousoroverbearing,theywill nothavemuchofanimpactonswayingthedecisionsofotherteammembers.
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4DMAICOverviewMPhase
4.1 ObjectivesofMeasurePhase
To identify critical measures that are necessary to evaluate the success meeting critical customer requirementsand begin developing a methodology to effectively collect data to measure process performance. To establish baseline sigma for the processes the team is analyzing. MainActivities: IdentifyInput,Process,andOutputIndicators DevelopOperationalDefinition&MeasurementPlan PlotandAnalyzeData DetermineifSpecialCauseExists DetermineSigmaPerformance CollectOtherBaselinePerformanceData

KeyDeliverable: Reliableassessmentofcurrentperformance

4.2 ProcessMaps
Process maps are graphical representations of a process flow identifying the steps of the process,theinputsandoutputsoftheprocess,andopportunitiesforimprovement.Process maps can cross functional boundaries if the start points and stop points are located in differentdepartmentsorifseveralpersonsfromdifferentdepartmentsareresponsiblefor satisfied the specific customer need. Process maps are applicable to any type of process: manufacturing,design,service,oradministrative.Processmapsareusedtodocumentthe actual process and located value and nonvalue added steps. These maps can be an excellent way to communicate information to others and train employees. Process Maps can be used to document nonvalue added steps (anything that the customers are not willingtopayfor).Identificationofnonvalueaddedstepspavesthewaytogetridofthese stepsinfuturephasesofDMAIC. TheinitialASISprocessmapsshouldalwaysbecreatedbycrossfunctionalteammembers andmustreflecttheactualprocessratherthananidealstateofdesiredstate. SIPOCisanacronymforSuppliersInputsProcessOutputsCustomers.Itisahighlevel process map that describes the boundaries of the process, major tasks and activities, Key ProcessInputandOutputVariables,Suppliers&Customers.Whenwerefertocustomers,
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we usually talk about both internal and external customers. It can beused to identify the key stakeholders and describe the process visually to team members and other stakeholders.Astakeholderisanyonewhoiseitherimpactedbytheprojectorcouldimpact theoutcomeoftheproject.Noteveryoneisastakeholderbutaprojectmayhaveseveral stakeholdersincludingemployees,suppliers,customers,shareholdersetc.Figure5showsa filledoutSIPOCmatrix. Suppliers:Provideinputs Inputs:Data/unitrequiredtoexecutetheprocess ProcessBoundary:Identifiedbythehandoffattheinput(thestartpointofprocess)and theoutput(theendpointoftheprocess) Outputs:Outputofaprocesscreatingaproductorservicethatmeetsacustomerneed Customers:Usersoftheoutput

Figure5:SIPOCExample

TopDownFlowChartisaflowchartthatdescribestheprocessusingthesymbolsshownin thefollowingtable.

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Table3:TypicalSymbolsusedinProcessMaps

Figure6:TypicalFlowChart

FunctionalDeploymentFlowChart:Afunctionaldeploymentflowchartshowsthedifferent functionsthatareresponsibleforeachstepintheprocessflowchart.Anexampleisshown below:

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Responsible Step Log-in Order Prioritize Order Review for Specifications Materials Explosion Schedule Fabrication Y N Clerk Supervisor Materials Management Scheduler

N Y

Figure7:ExampleProcessMapswithFunctionsShown

4.3 DataCollection&Summarization
Beforedatacollectionsstarts,classifythedataintodifferenttypes:continuousordiscrete. Figure8showsexamplesofdifferenttypesofcontinuousandattributedata. Continuousorvariable Measuredonacontinuum Objective Subjective
Time Money Weight Length Satisfaction Agreement Extent

Discrete,categorical,orattribute CountorCategories Objective Subjective

Countdefects #approved #oferrors Typeof document Yes/No Categories Service performance rating(good, poor)

Figure8:DifferentTypesofData Sometimes it is very costly or time consuming to collect all the data that is available. In thesecases,weresorttosampling.Samplingreferstocollectingonlyasubsetofthedata and still be able to make good decisions from this subset of data instead of having the collectthedatafortheentirepopulation. Isthesamplerepresentativeoftheprocessorpopulation? Istheprocessstable? Isthesamplerandom? Isthereanequalprobabilityofselectinganydatapointwithinahomogenousgroup? Theanswertoeachofthesequestionsmustbeyesbeforewecandrawstatistically validconclusions.
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ThreecommontypesofSamplingare:RandomSampling(samplestobeselectedcannotbe predicted),StratifiedSampling(makesurethatwesampleeachofthedifferentsegments), andsystematicsampling(every100thpiece) In random sampling, all items have some chance of selection that can be calculated. Randomsamplingtechniqueensuresthatbiasisnotintroducedregardingwhoisincludedin thesurvey.Forexample,eachnameinatelephonebookcouldbenumberedsequentially.If the sample size was to include 2,000 people, then 2,000 numbers could be randomly generatedbycomputerornumberscouldbepickedoutofahat.Thesenumberscouldthen bematchedtonamesinthetelephonebook,therebyprovidingalistof2,000people. Systematic sampling, sometimes called interval sampling, means that there is a gap, or interval, between each selection. This method is often used in industry, where an item is selected for testing from a production line (say, every fifteen minutes) to ensure that machines and equipment are working to specification. This technique could also be used whenquestioningpeopleinasamplesurvey.Amarketresearchermightselectevery10th personwhoentersaparticularstore,afterselectingapersonatrandomasastartingpoint; orinterviewoccupantsofevery5thhouseinastreet,afterselectingahouseatrandomasa startingpoint. Ageneralproblemwithrandomsamplingisthatyoucould,bychance,missoutaparticular group in the sample. However, if you form the population into groups, and sample from each group, you can make sure the sample is representative. In stratified sampling, the population is divided into groups called strata. A sample is then drawn from within these strata.SomeexamplesofstratacommonlyusedinCensusstudiesareStates,AgeandSex. Otherstratamaybereligion,academicabilityormaritalstatus.Forexample,ifaparticular subgroup is 10% of the entire population and we want to sample 100 points overall, we wouldrandomlypick10pointsfromthissubgroup. TOOLSforDataCollections CheckSheets:Areprobablythemostcommontypeofdatacollectionformsused,butthere are a variety of other data collection forms. Simple data collection form that helps determineshow often something occurs. Figure 9 shows an examplecheck list. These are beneficialforuseinrealtimeastheyareveryeasytounderstandanduse. Concentration Diagrams: Are most commonly physical representations of a product that hasmarksonittoshowwhatproblemsoccurredandwhereontheproducttheyoccurred. However,anexampleshownlaterinthismoduleshowshowthesameideacanbeapplied toanadministrativeform.Inthiscase,theobjectonwhicherrorswereoccurringwasthe formthatemployeeswerefillingout.Byusingaconcentrationdiagram,thecompanycan seewhaterrorsarebeingmadeandwhereontheobjecttheerrorsoccurmostfrequently. Figure10showsaconcentrationdiagramwhichshowsthatmosterrorsoccurintheupper lefthandcornerofthePrintedCircuitBoard.
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Figure9:CheckSheetExample

Figure10:ConcentrationDiagramshowinglocationofDefects ParetoChartsisatypeofbargraphusedtoarrangeinformationinsuchawaythatitcanbe usedtoprioritizeprocessimprovements.Thechartissimilartothehistogramorbarchart, exceptthatthebarsarearrangedindecreasingorderfromlefttorightalongtheabscissa. The fundamental idea behind the use of Pareto diagrams for quality improvement is that thefirstfew(aspresentedonthediagram)contributingcausestoaproblemusuallyaccount for the majority of the result. Pareto charts are sometimes referred to as identifying the vital few from the trivial many. Targeting these "major causes" results in the most cost effective improvement scheme. The Pareto example in Figure 11 shows that Caulking and Connectingarethebiggestsourcesoftheproblemaccountingfor60%ofthetotalproblem.

Figure11:ParetoExample Histogramsarechartsthatshowthefrequencyofoccurrenceofvalues.Figure12showsan examplehistogram.Forexample,ifwedoacustomersurveyandthereare10choicesinthe survey,ahistogramcanbeusedtoplothowmanyrespondentspickedoption1,howmany pickedoption2,andsoon.Histogramsaregoodwaystoshowsummaryofdatavalues.In

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thisexample,mostrespondentschoseoption6withthelowestoptionbeingOption3and thehighestbeingOption9.

Figure12:HistogramExample(CustomerSurveyResults)

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5DMAICOverviewAPhase
5.1 ObjectivesoftheAnalyzePhase
Tostratifyandanalyzetheopportunitytoidentifyandvalidatetherealrootcausesofthe problem. MainActivities: StratifyProcess StratifyData&IdentifySpecificProblem DevelopProblemStatement IdentifyRootCauses DesignRootCauseVerificationAnalysis ValidateRootCauses EnhanceTeamCreativity&PreventGroupThink

KeyDeliverable: ValidatedRootCauses

5.2 GenerationofPotentialSolutions
Cause & Effect or Fishbone Diagram: A graphic tool used to explore and display opinion aboutsourcesofvariationinaprocess.Thepurposeistoarriveatafewkeysourcesthat contribute most significantly to the problem being examined. These sources are then targeted for improvement.The diagram also illustrates the relationships among the wide variety of possible contributors to the effect. The figure below shows a simple Ishikawa diagram. Note that this tool is referred to by several different names: Ishikawa diagram, CauseandEffect diagram, Fishbone diagram, and Root Cause Analysis. The first name is after the inventor of the tool, Kaoru Ishikawa (1969) who first used the technique in the 1960s. The basic concept in the CauseandEffect diagram is that the name of a basic problemofinterestisenteredattherightofthediagramattheendofthemain"bone".The main possible causes of the problem (the effect) are drawn as bones off of the main backbone.Thistoolcanbeusedtobrainstormforpotentialcausesandthennarrowdown the causes to be investigated further. Figure 13 shows a partially filled out fishbone diagram.

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Figure13:FishboneDiagramExample Five Whys Analysis: Asking "Why?" may be a favourite technique of your three year old childindrivingyoucrazy,butitcouldteachyouavaluableSixSigmaqualitylesson.The5 Whys is a technique used in the Analyze phase of the Six Sigma DMAIC methodology. By repeatedlyaskingthequestion"Why"(fiveisagoodruleofthumb),youcanpeelawaythe layersofsymptomswhichcanleadtotherootcauseofaproblem.Althoughthistechnique iscalled"5Whys,"youmayfindthatyouwillneedtoaskthequestionfewerormoretimes thanfivebeforeyoufindtheissuerelatedtoaproblem.Thebenefitsof5Whysisthatitis asimpletoolthatcanbecompletedwithoutstatisticalanalysis.Table4showsanillustration of the 5 Whys analysis. Based on this analysis, we may decide to take out the nonvalue addedsignatureforthedirector.
Customersareunhappybecausetheyarebeingshippedproductsthatdon'tmeettheir specifications. Because manufacturing built the products to a specification that is different from what thecustomerandthesalespersonagreedto. Because the sales person expedites work on the shop floor by calling the head of manufacturing directly to begin work. An error happened when the specifications were beingcommunicatedorwrittendown. Because the "start work" form requires the sales director's approval before work can begin and slows the manufacturing process (or stops it when the director is out of the office). Becausethesalesdirectorneedstobecontinuallyupdatedonsalesfordiscussionswith theCEO.

Why

Why

Why

Why

Table4:5WhysExample
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6DMAICOverviewIPhase
6.1 ObjectivesoftheImprovePhase
Toidentify,evaluate,andselecttherightimprovementsolutions.Todevelopachangemanagement approach to assist the organization in adapting to the changes introduced through solution implementation.

MainActivities: GenerateSolutionIdeas DetermineSolutionImpacts:Benefits EvaluateandSelectSolutions DevelopProcessMaps&HighLevelPlan CommunicateSolutionstoallStakeholders

KeyDeliverables: Solutions ProcessMapsandDocumentation

6.2 SolutionSelection
Pugh Matrix refers to a matrix that helps determine a solution from a list of potential solutions. It is a scoring matrix used for concept selection, in which options are assigned scores relative to some predefined criteria. The selection is made based on the consolidatedscore.ThePughmatrixisatooltofacilitateamethodicalteambasedapproach for the selection of the best solution. It combines the strengths of different solutions and eliminates the weaknesses. This solution then becomes the datum of the base solution againstwhichothersolutionsarecompared.Theprocessisiterateduntilthebestsolution orconceptemerges.Figure14showsanexampleofPughmatrix.Fromthisexample,wecan conclude that options B, C, and D have more number of negatives compared tooption A. Hence,wewouldpickoptionAasthebestsolution. Whentherootcausesandsolutionsareselected,weneedtoensurethattheprojectteam hasdemonstratedthattheprimarymetricisbetterthanthegoalestablishedfortheproject.

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Figure14:ExamplePughMatrix

6.3 JohnKotters8StepChangeManagementPlan
AccordingtoJohnKotter,thefollowingeightstepshavetobefollowedtoenablechangewithinan organization.Oneofthemostcommonreasonsforprojectfailureislackofcommunication. Step1:IncreaseUrgency Step2:BuildaGuidingTeam Step3:GettheVisionRight Step4:CommunicateforBuyIn Step5:EmpowerAction Step6:CreateShortTermWins Step7:DontLetUp Step8:MakeChangeStick

6.4 ChangeManagementIssues
We will discuss three change management tools: Force Field analysis, Stakeholder analysis, and Resistanceanalysis. ForceFieldAnalysisisausefultechniqueforlookingatalltheforcesforandagainstadecision.It helps in identifying the restrainers and drivers to change. In effect, it is a specialized method of weighing pros and cons. By carrying out the analysis you can plan to strengthen the forces supportingadecision,andreducetheimpactofoppositiontoit.Figure15showsanexampleForce Fieldanalysis.Inthisexample,thereare4forcesforthechangeand2forcesagainstthechange.This

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indicatesthattherearemoreforcesforthechange.Canyouthinkofdeployingsomeactionitemsto furtherincreasetheforcesforchange?

Figure15:SampleForceFieldAnalysis
StakeholderAnalysisisatechniquethatidentifiesindividualsorgroupsaffectedbyandcapableof influencingthechangeprocess.Assessmentofstakeholdersandstakeholderissuesandviewpoints arenecessarytoidentifytherangeofintereststhatneedtobetakenintoconsiderationinplanning changeandtodevelopthevisionandchangeprocessinawaythatgeneratesthegreatestsupport. Thefollowingparametersareusedtodevelopthesegmentationofthestakeholders: LevelsofInfluence:High,Medium,Low LevelofImpact:High,Medium,Low MinimumSupportRequired:Champion,Supporter,Neutral CurrentPosition:Champion,Supporter,Neutral,Concerned,Critic,Unknown

StakeholderActionPlan: 1. Theplanshouldoutlinetheperceptionsandpositionsofeachstakeholdergroup,including meansofinvolvingtheminthechangeprocessandsecuringtheircommitment 2. Definehowyouintendtoleveragethepositiveattitudesofenthusiasticstakeholdersand thosewhoownresourcessupportiveofchange 3. Statehowyouplantominimizerisks,includingthenegativeimpactofthosewhowilloppose thechange 4. Clearlycommunicatecomingchangeactions,theirbenefitsanddesiredstakeholderroles duringthechangeprocess 5. Maintainedonanongoingbasis ResistanceAnalysis TechnicalResistance:stakeholdersbelieve6Sigmaproducesfeelingsofinadequacyor stupidityonstatisticalandprocessknowledge PoliticalResistance:stakeholderssee6Sigmaasalossofpowerandcontrol OrganizationalResistance:stakeholdersexperienceissuesofpride,egoandlossof ownershipofchangeinitiatives IndividualResistance:stakeholdersexperiencefearandemotionalparalysisasaresultof highstress

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StrategiestoOvercomeResistance: TechnicalResistance:focusonhighlevelconceptstobuildcompetencies.Thenaddmore statisticaltheoremsasknowledgebasebroadens PoliticalResistance:addressissuesofperceivedlossstraighton.Lookforchampionsto buildconsensusfor6Sigmaanditsimpactonchange OrganizationalResistance:lookforwaystoreduceresistance. IndividualResistance:decreasethefearbyincreasedinvolvement,informationand education

6.5 StagesofaTeam
Thefourstagesthatallteamsgothroughareshownbelow.Ineachphase,theprojectleader hastouserdifferenttechniquestopushtheteamalong. Form

Identifyingandinformingmembers Everyoneisexcitedatthenewresponsibilities UseProjectChartertoestablishacommonsetofexpectationsforallteammembers

Storm

Teamsstarttobecomedisillusioned.Whyarewehere,isthegoalachievable? Identifyingresistors,counsellingtoreduceresistance. Helppeoplewiththenewroles&responsibilities Haveadifferentpersontakemeetingminutes,leadteammeetingsetc

Norm

Informingnorms(rules),buildingupofrelationshipsamongstmembers. Productivityofteamisincreasing Helpteampushtothenextstage

Perform

ContributionfromthemembersIdeas,innovation,creation. Allmemberscontributetothefullest. Teamsshouldreachthisstagequickestforthebestresults. Motivateteammembersbyrecognition,financialrewards,quickwinopportunities.

Someoftheproblemswithteamsare:

Groupthinkwhichistheunquestionedacceptanceofteamsdecisions Feudingfightingbetweendifferentteammembers Flounderingteamsthattakeforevertoreachadecision Rushingteamsthatwanttoskipallstepsandfinishtheprojectsoon

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7DMAICOverviewCPhase
7.1ObjectivesoftheControlPhase
To ensure process control over the long term, disseminate lessons learned, identify replicationandstandardizationopportunities/processes,anddeveloprelatedplans. MainActivities: DevelopandImplementPilotPlanandSolution VerifyReductioninRootCauseSigmaImprovementResultedfromSolution IdentifyifAdditionalSolutionsareNecessarytoAchieveGoal IdentifyandDevelopReplication&StandardizationOpportunities IntegrateandManageSolutionsinDailyWorkProcesses IntegrateLessonsLearned IdentifyTeamsNextSteps&PlansforRemainingOpportunities

KeyDeliverables: ProcessControlPlan

7.2ToolstoSustainImprovements
ControlPlan:Itisadocumentthathelpswithensuringlongtermcontroloftheprocess. ProcessDescription Reflectsakeyprocess,joborgroupofworktasks Usessimpleandgeneralterms Mustbeunderstandableforowners,customers,andusers

ProcessPurpose Describesthedesiredprocessoutcome Mustbemeasurable(mustbemeasurableasasetofcustomerdriven specifications)

Quality/OutcomeIndicator MeasureshowwelltheCustomerrequirements/processpurposeisbeingmet

ProcessMap Thesetofsequentialandparallelactivitiesthatmustbecompletedtoensurethe Customerrequirement/processpurposeismet Showsindividualaswellascrossfunctionalaccountability

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Indicators Asetofindicatorsidentifiedaftertheprocessisdevelopedthatmeasure complianceofcriticalprocessactivitiestoprocessspecifications Mustbetiedtothespecificprocessactivities Mustprovideupstreamindicationofthequalityoftheoutcomeoftheprocess

ControlLimits&Specifications Thespecificationlimitsortargetsthatdefineacceptablelevelsofquality performanceforthequalityandprocessindicators

Checking Definesthespecificitemstobechecked Definesthefrequencyatwhichtheyshouldbechecked Definestheindividualaccountableforchecking

Actions Definesthecontingencyactionsthatshouldbetakeninresponsetocertain identifiedevents

MiscellaneousInformation Mustincludereferencestostandardsandprocedures Shouldidentifyallproceduresandstandardsrequiredtoperformtheactivities specifiedontheprocessmap StandardsandProcedures Eachproceduremustdefinethespecificsetofinstructionsnecessaryto performanidentifiedactivity Standardsandproceduresmustconformtoastandardizedformandformat Formandformatshouldsimplifyexecutionoftheactivitiesandreducethe possibilityofmiscommunicationandmistakes

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Figure16:ControlPlanExample ControlCharts

Control charts have the ability to indicate the presence of special causes that upset processes. Note that control charts are not there to detect if a process is performing to specificationsornot.Ithelpstodetect,diagnose,andcorrectprocessproblemsinatimely fashion. It provides an easy to understand visual indicator of process performance and recognize the extent ofvariation that now exists so that we do not overreact to common causevariation(tweaking).Figure17showstwocontrolcharts.Thefirstcontrolcharthasall datapointswithinthecontrollimits(LCandUC),hencethisplotisincontrol.The second chart has some data points that fall outside the control limits, hence this plot is out of control. Therearetwotypesofvariations:CommoncauseandSpecialcause. CommonCause: Therearealwaysinherentchancecausesresponsiblefornaturalvariationinall processesduetonormalvariationinmaterials,environments,methods,etc. (commoncause) Variationwithinastablepatternofchancecausesisinevitable

SpecialCause: Oncewehaveanindicationofashiftoutsideastablepatternofvariation,wemust discoverthereasonfortheshift(specialcause) Wewanttoremovetheinfluenceofaspecialcauseifitisadverselyaffecting productprocessquality Ifthespecialcauseinfluenceisimprovingproductprocessquality(e.g.,6Sigma projects),wewanttopermanentlycaptureitseffect

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InControlVariation
26 25 24 23 22 21 20 19 18 17 16 15 14
M T W Th F M T W Th F M T W Th F M T W Th F M

UC

LC

Days OutofControlVariation
6
1 2 3 4 5 UC

4
3

3
1 LC

Time Figure17:ControlChartsExample

Note that PokaYoke may be a better form of maintaining control as it could prevent the mistake fromoccurringinthefirstplace.Incaseofacontrolchart,wehavetoconstantlymonitorthecontrol charttodetermineifanyspecialcauseshaveoccurred.

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8Appendix
BinomialDistribution
Inthisdistribution,therandomvariableonlytakestwovaluessuchasacointoss(headsor tails).Forexample,ifweareworkingwithdefectivesinaprocess,wecanhavepartsthat aredefectiveornotdefectivehenceonlytwopossiblevalues. If we have a series of coin tosses, lets say we have n coin tosses and the probability of occurrenceofheadisp,thentherandomvariableXissaidtohaveabinomialdistribution withparametersnandp.Therandomvariablecantakeonvalues0,1,2,...,nandcounts the number of successes (where getting a head can be termed as success). The following conditionshavetobemetforusingaBinomialdistribution: o o o o Thenumberoftrialsisfixed Eachtrialisindependent Eachtrialhasoneoftwooutcomes:eventornonevent Theprobabilityofaneventisthesameforeachtrial

Supposeaprocessproduces2%defectiveitems.Youareinterestedinknowinghowlikelyis it to get 3 or more defective items in a random sample of 25 items selected from the process.Thenumberofdefectiveitems(X)followsabinomialdistributionwithn=25andp =0.02. One of the properties of a binomial distribution is that when n is large and p is close to 0.5, the binomial distribution can be approximated by the standard normaldistribution.Forthisgraph,n=100andp=0.5.

Poissondistribution
Describesthenumberoftimesaneventoccursinafiniteobservationspace.Forexample,a Poisson distribution can describe the number of defects in the mechanical system of an airplane or the number of calls to a call center. The Poisson distribution is often used in qualitycontrol,reliability/survivalstudies,andinsurance. The Poisson distribution is defined by one parameter: lambda. This parameter equals the mean and variance. As lambda increases, the Poisson distribution approaches a normal distribution. Whenever, we are working with defects or when the exact probability of an event is not know (only the average), then we are usually working with the Poisson distribution.Forexample,iftheaveragenumberofroadaccidentsinastateis2perday,
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then the exact probability is not know, we would use the Poisson distribution function in thiscase. Lambda=3 Lambda=10

AvariablefollowsaPoissondistributionifthefollowingconditionsaremet: Dataarecountsofevents(nonnegativeintegerswithnoupperbound). Alleventsareindependent. Averageratedoesnotchangeovertheperiodofinterest. The Poisson distribution is similar to the binomial distribution because they both model countsofevents.However,thePoissondistributionmodelsafiniteobservationspacewith any integer number of events greater than or equal to zero. The binomial distribution modelsafixednumberofdiscretetrialsfrom0tonevents

Normaldistribution
Abellshapedcurvethatissymmetricaboutitsmean.Thenormaldistributionisthemost common statistical distribution because approximate normality arises naturally in many physical, biological, and social measurement situations. Many statistical analyses require thatthedatacomefromnormallydistributedpopulations. For example, the heights of all adult males residing in the state of Pennsylvania are approximatelynormallydistributed.Therefore,theheightsofmostmenwillbeclosetothe meanheightof69inches.Asimilarnumberofmenwillbejusttallerandjustshorterthan 69inches.Onlyafewwillbemuchtallerormuchshorter. Themean()andthestandarddeviation()arethetwoparametersthatdefinethenormal distribution. The mean is the peak or centre of the bellshaped curve. The standard deviationdeterminesthespreadinthedata.Approximately,68%ofobservationsarewithin +/ 1 standard deviation of the mean; 95% are within +/ 2 standards deviations of the mean;and99%arewithin+/3standarddeviationsofthemean.

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FortheheightofmeninPunjab,themeanheightis69inchesandthestandarddeviationis 2.5 inches. For a continuous distribution, like to normal curve, the area under the probabilitydensityfunction(PDF)givestheprobabilityofoccurrenceofanevent. Approximately68%ofPunjab menarebetween66.5 (m1s)and71.5(m+1s)inchestall.

Approximately95%ofPunjabmenarebetween64(m 2s)and74(m+2s)inchestall.

Approximately99%ofPunjabmenarebetween61.5 (m3s)and76.5(m+3s)inchestall.

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9CommonSixSigmaAcronyms

ANOVA COPQ CP,CPK DMADV DMAIC DOE DPMO DPU FMEA IDOV Kaizen KPI MSA Muda PDCA PP,PPK s AnalysisofVariance CostofPoorQuality ProcessCapabilityIndices(ShortTerm) Define,Measure,Analyze,Design,Validate/Verify Define,Measure,Analyze,Improve,Control DesignofExperiments DefectsperMillionOpportunities DefectsperUnit FailureModes&EffectsAnalysis Identify,Design,Optimize,Validate/Verify ContinuousImprovement KeyPerformanceIndicator MeasurementSystemsAnalysis Waste PlanDoCheckAct ProcessCapabilityIndices(LongTerm) SampleStandardDeviation

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10 Importantlinksforonline learninganddiscussion
1. HowdoesSixSigmaapplyinfollowingIndustriesandFunctionalAreas? Clickonthelinksbelowtolearnaboutapplicabilityandbenefits.
Accounting Advertising Agriculture http://forum.benchmarksixsigma.com/discussion/topic/show/138463#message_273165 http://forum.benchmarksixsigma.com/discussion/topic/show/138482 http://forum.benchmarksixsigma.com/discussion/topic/show/230973 http://forum.benchmarksixsigma.com/discussion/topic/show/142929 http://forum.benchmarksixsigma.com/discussion/topic/show/232795 http://forum.benchmarksixsigma.com/discussion/topic/show/230978
http://forum.benchmarksixsigma.com/discussion/topic/show/144906#message_273175

Airlines/TravelAviation Construction ConsumerDurables

Courier Defence

http://forum.benchmarksixsigma.com/discussion/topic/show/185904 http://forum.benchmarksixsigma.com/discussion/topic/show/153534 http://forum.benchmarksixsigma.com/discussion/topic/show/157376 http://forum.benchmarksixsigma.com/discussion/topic/show/230978 http://forum.benchmarksixsigma.com/discussion/topic/show/153534 http://forum.benchmarksixsigma.com/discussion/topic/show/138459

http://forum.benchmarksixsigma.com/discussion/topic/show/138463#message_238236

DesignandDev Education

Electronics EngineeringDesign

Export Finance

Fertilizer FMCG

http://forum.benchmarksixsigma.com/discussion/topic/show/232733 http://forum.benchmarksixsigma.com/discussion/topic/show/143417 http://forum.benchmarksixsigma.com/discussion/topic/show/232731 http://www.sixsigmaindia.com/ http://forum.benchmarksixsigma.com/discussion/topic/show/235546 http://forum.benchmarksixsigma.com/discussion/forum/show/103421?page=1 http://forum.benchmarksixsigma.com/discussion/topic/show/165689 http://forum.benchmarksixsigma.com/discussion/topic/show/142929 http://forum.benchmarksixsigma.com/discussion/topic/show/138479 http://forum.benchmarksixsigma.com/discussion/topic/show/144895

Food Fresher

Gems GeneralManagement Government Healthcare

HR Hotels

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ITES/BPO ITSoftware ITHardware Legal http://forum.benchmarksixsigma.com/discussion/topic/show/138448 http://forum.benchmarksixsigma.com/discussion/forum/show/104071

http://forum.benchmarksixsigma.com/discussion/topic/show/232729 http://forum.benchmarksixsigma.com/discussion/topic/show/232730 http://forum.benchmarksixsigma.com/discussion/topic/show/141783 http://forum.benchmarksixsigma.com/discussion/topic/show/232727 http://forum.benchmarksixsigma.com/discussion/topic/show/235543 http://forum.benchmarksixsigma.com/discussion/topic/show/235550 http://forum.benchmarksixsigma.com/discussion/topic/show/230978 http://forum.benchmarksixsigma.com/discussion/topic/show/232726 http://forum.benchmarksixsigma.com/discussion/topic/show/156024 http://forum.benchmarksixsigma.com/discussion/topic/show/232732 http://forum.benchmarksixsigma.com/discussion/topic/show/159371 http://forum.benchmarksixsigma.com/discussion/topic/show/232794 http://benchmark.groupsite.com/discussion/topic/show/145142 http://benchmark.groupsite.com/discussion/topic/show/149429 http://forum.benchmarksixsigma.com/discussion/topic/show/235541 http://forum.benchmarksixsigma.com/discussion/topic/show/159328 http://forum.benchmarksixsigma.com/discussion/topic/show/153534 http://benchmark.groupsite.com/discussion/topic/show/144911 http://forum.benchmarksixsigma.com/discussion/topic/show/235552 http://forum.benchmarksixsigma.com/discussion/topic/show/197031 http://www.sixsigmaindia.com/ http://benchmark.groupsite.com/discussion/topic/show/153860 http://forum.benchmarksixsigma.com/discussion/topic/show/138442 http://forum.benchmarksixsigma.com/discussion/topic/show/232740 http://forum.benchmarksixsigma.com/discussion/topic/show/138459

Marketing Media Metallurgy

NGO OfficeEquipment

Oil&Gas ServiceOperations Paper Pharma

Printing Production

ProjectManagement RealEstate

Recruitment Research

Retail/Logistics Security

Shipping Students

SupplyChain Telecom Training Textile

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2. SlideshowsonSixSigma Visitwww.slideshare.netandsearch&studythefollowingpresentations. a. SixSigmainvariousIndustries b. SixSigmainbusinessfunctions c. SixSigmaforManagementstudents d. SixSigmabenefitsforindividuals 3. SuccessstoriesofpeoplewhohavebenefitedalotfromSixSigmaClickonthe followinglinkhttp://forum.benchmarksixsigma.com/blog 4. SixSigmasroleincareergrowth

a. Clickonthefollowinglinktoseeresponsesofpeoplewhounderwentonly BenchmarkSixSigmaGreenBelttrainingandhavelimitedexperiencein implementingSixSigma. http://app.sgizmo.com/reports/45875/164620/H960YX0QKLA04LM2VOZOA2 6CWJ3APU/?ts=1254985224 b. Clickonthefollowinglinktoseeresponsesofpeoplewhoareexperienced SixSigmaprofessionalsandhaveundergoneeitheroneormorelevelsofSix Sigmatraining(GreenBelt,BlackBelt,MasterBlackBelt) http://app.sgizmo.com/reports/45875/165131/6YQ0L5TMXYSK76S207L3K47 1A6H1MW/?ts=1254985224

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