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WELCOME

To
THE
Six Sigma Yellow Belt
Program

Transforming Life…
TRAINING GROUND RULES

) If you have any questions --ask! Someone else may need to have additional

explanations also!

) Share your thoughts and experiences relating to the topics we discuss.

) When we take breaks --be prompt in returning so we can stay on schedule.

) There will be a number of activities --please take an active role --each

activity is intended to reinforce learning.

)Listen as an ally --How can I use this tool or apply this concept?

) Only one person speaking at a time. Keep side discussions to a minimum.

) Please turn cellular phones to a silent mode.( Rs. 50 X Fine )

Transforming Life…
TRAINING GROUND RULES

)Adult learning theory: You are responsible for your own learning,this requires

your active participation:

)Questions are good, not a sign of ignorance, but part of a learning

experience.

)Applying learning's right away is very important. We learn when we use

knowledge in our lives.

)Accelerating the need to use the lessons is a key way to assure that we

really learn!

Transforming Life…
Course Content

OBJECTIVES

MNYL’s Perspective on Quality


“ Why Six Sigma “
Apply the Six Sigma methodology to improve processes
Clarity on Six Sigma –DMAIC Methodology
Your Role going Forwards

Transforming Life…
Quality

What is Quality

• “Quality is Fitness for use “ Juran

• “A product or service possesses quality if it helps somebody and


enjoys a good and sustainable market” Deming

• “Quality is conformance to requirements” Crossby

• “Quality is as perceived by Customer “ Anonymous

Transforming Life…
Quality Policy - MNYL

Transforming Life…
The MNYL Quality Journey QUALITY
And
BUSINESS
EXCELLENCE

Consolidation

• Six Sigma Launch


• Service Delivery Forum
Small Improvements &
Process Orientation • Improvement Projects
(Servottam,PPP,PLS)
• ISO Certification • Cost Mgmt Program
Basic Awareness & • My Kontribution (Kaizen) • Service Scorecard
Culture • Improvement Projects • Zonal Quality
(Polivartan) • ISO Recertification
• Basic Processes & • Project Management(C4G, • Six Sigma Excellence
Procedure Munich Re etc) Award (Sakaal)
• ASAT/ CSAT • Mystery Shopping

2002 2003 - 2004 2005 - 2006 2007 - 2008

Transforming Life…
Quality & Business Excellence Model
CUSTOMER PERSPECTIVE
Listening Posts (CSAT / ASAT)

CONTINUOUS IMPROVEMENT
Six Sigma / Project Management

INTEGRATION / PERFORMANCE / RESULTS


Measurements / Balance Scorecard

PROCESS EXCELLENCE
BPMS – ISO Audits/ Process and dashboard orientation

CULTURE BUILDING
People Engagement & Empowerment – MyKontribution, Training, ISO, Six Sigma
Recognition & Rewards, Communication

Transforming Life…
The MNYL Quality Structure ‰
‰
‰
Gary Bennett - CEO
Sunil Sharma – COO
Rajesh Sud – Distribution
‰ Sanjeev Mago – Ops & S
‰ Rajit Mehta – HR
‰ Sunil Kakar – Finance
Business Quality ‰ Amit Kumar – IT
Council ‰ Vineet Sharma – Business
Excellence & Quality

Quality Leader Functional Quality


Councils (HO/Zonal)

Improvement Team

Champion Black Belt/Green Belt (Team Leader)


Yellow Belts
Master Black Belt

Members

Transforming Life…
WIFM

9 Higher level of learning in Basic Quality Tools.

9 Yellow belt projects create applicable benefits for MNYL.

9 Certification methodology ensures focussed Learning.

9 Nursery for creating Future Quality Project leaders.

9 Get taste of Quality and learn usable tools in a simple


way.

9 Direct Nomination to the Green Belt program on


certification

Transforming Life…
Certification Process
The Yellow belt certification program is a simple 5- Step process:

STEP 1 : Send nominations to the Quality team for participation in the YB


program.

STEP 2 : Participate in the Two day Yellow Belt program post invitation
from Q-Team.

STEP 3 : Successfully pass the Yellow Belt Post Training


assessment.LESTONE I : YELLOW BELT TRAINED CERTIFICATE

STEP 4 : Register your yellow belt project .

STEP 5: Report successful completion of the Yellow Belt project.

• On project completion fill project details in format provided.


• Sign off from Supervisor and Quality SPOC (BB).
• Last date to submit is before 28th of every month.
• Every Ist week of the Month YB certification will happen

Transforming Life…
Let`s know little
bit more about
Six Sigma
Transforming Life…
Evolution of SS What is 6σ

Transforming Life…
Why we chose Six Sigma

ÉMeasurable & data based


ÉCustomer Focused
ÉRemoves defects from products & services
ÉEncompasses Manufacturing, Software and Transactional
processes
ÉSustainable competitive edge
ÉGlobal acceptance
ÉProject based, with milestones
ÉIntegrates well with other Quality initiatives like ISO, Phil Cross by
etc.

Transforming Life…
What is 6σ

What is different about

Six Sigma

Transforming Life…
Let us Start with …. What is 6σ

É The vast majority of the tools were developed more than 50 years
ago

É Many Six Sigma projects (especially in transactional areas) will not


require sophisticated / esoteric analytical tools.

É Improvement comes on a project by project basis.

É Management care and feeding is required.

What`s Not New

Transforming Life…
What is New Strategically ? What is 6σ

¾ Alignment of Six Sigma Initiative with Business Objectives

¾ Accountability
9 Metrics
• Activity based
• Outcome based.

¾ Executive Selection Of :
9 Champions to manage Projects
9 Projects formation
9 Belts to execute projects
• Green
• Black
• Master Black

Transforming Life…
What is New Tactically? What is 6σ
¾ Dedicated Resources.

¾ Improvements Instutionalized and “Cross-pollinated”

¾ Structure and Organization of Tools


9 Define
9 Measure
9 Analyze
9 Improve
9 Control

¾ Personal Computer Technology Facilitates :


9 Statistics
9 Extracting information from data

Transforming Life…
Advantages of This Type of Approach

¾ Have a common language


¾ Sensitize the organization in the use of statistical tools
¾ Develop the internal supplier/customer relationship
¾ Benchmarking
¾ Work on the most significant objectives
¾ Promote working in teams

Transforming Life…
Common Language Z Value

A Universal Measurement Scale ...


Sigma

7
6
5
4
ε DPMO
3
On one condition : 3.4

233
Calculate the defects and
estimate the opportunities 6210
in the same way...
66810

Transforming Life…
Need for Z Value Z Value

Process Performance

Purchase Order Generation ) 98% Accuracy

Accounts Receivables ) 33 days average aging

Customer Service ) 82% rated 4 or 5 on responsiveness

Supplier Delivery ) 95 % on-time delivery

Which process is performing best ?

Transforming Life…
Character of 6σ Why 6σ

A Traditional View The Six Sigma View


Product Quality
• Input COQ Service
Variables On-Time Delivery
Relationships
Credit Terms
Customer
Training
Customer Satisfaction

Market Share
Market Share
Sales Growth
Sales Growth • Output
Profitability
• Output Profitability Variables
Variables
Manage the inputs; respond
Manage the outputs. to the outputs.

Transforming Life…
Six Sigma Co-travelers

™ Motorola ™ Toshiba
™ Allied Signals ™ Canon
™ ABB ™ Hitachi
™ GE ™ J P Morgan Chase
™ Texas Instruments ™ Seagate
™ Citibank ™ Tata Steel
™ Sony ™ ISPAT
™ Honda ™ WIPRO
™ Polaroid ™ AT & T
™ Sun Microsystems ™ Whirlpool

Transforming Life…
6 SIGMA DEFINITION What is 6σ

•LAYMAN’S DEFINITION
6 SIGMA MEANS ONE PIN HEAD UNCLEANED
AREA OF 1500 SQ FOOT CARPET AREA

6
STATISTICAL DEFINITION
•3.4 DEFECTS / MILLION ( 1.5 SIGMA SHIFT)
OR 2 DEFECTS / BILLION ( 0 SHIFT)

• IT MEANS OPERATING IN 1 / 2 THE


ALLOWABLE SPECIFICATION LIMIT

Transforming Life…
What are the Statistics What is 6σ

Two Meanings of “ Sigma ”


σ - Greek alphabet
The term “ Sigma ” is used to designate the distribution or spread
about the mean ( average ) of any process or procedure.

For a business processes , the sigma capability ( z –value )


Is a metric that indicates how well that process is performing defect free
work. A defect is anything that results in customer dissatisfaction.

As defects The Sigma Capability


Go down …… D σ Goes up ..……

Transforming Life…
Focus on defects

Design for Six Sigma (DFSS)

World Class Sweetest


Fruit
Six
Sigma 3.4 Bulk
fruit
Five Sigma 233 Process Characterization &

Optimization (DMAIC)
Average Four
Processes Sigma 6210
Low
Three Sigma 66807 Hanging
Seven Basic tools

Two Sigma 308537


Ground
One 697672 Fruit
Sigma
Logic & Intuition

Transforming Life…
What are the Statistics What is 6σ

σ PPM %age • 1 misspelled word in all of the books


contained in a small library
6 3.4 99.99966 • $340 indebtedness per $100 millions
assets
5 233 99.97670 • 1.8 minutes per year

4 6,210 99.37900
• 1.5 misspelled words per page in a
book
3 66,807 93.33190
• $6.7 millions indebtedness per $100
millions assets
2 308,537 69.12300
• 24 days per year

Transforming Life…
Paradigm Shift Why 6σ

Are you satisfied


with 99 % OK
in your life ???
Transforming Life…
We demand High Quality in our daily lives. . .

99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)


20,000 lost letters per hour Seven articles of mail lost per hour

Unsafe drinking water for One unsafe minute every seven


almost 15 minutes each day months

5,000 incorrect surgical 1.7 incorrect operations per week


operations per week
. . .so why not in our businesses?
Two short or long landings at One short or long landing every five
most major airports each day years at each airport

200,000 wrong drug 68 wrong prescriptions per year


prescriptions each year

No electricity for seven hours One hour without electricity every


each month 34 years

Transforming Life…
Paradigm Shift Why 6σ
Six Sigma: An Ambitious Objective?

Accurate to 99.99966 % ( less than 3.4 defects for each million


opportunities ) could appear excessive....!
99.9% is already VERY GOOD !
But what could happen at a quality level of 99.9% (i.e., 1000 ppm),
in our everyday lives (about 4.6s)?

4000 wrong medical prescriptions each year

• More than 3000 newborns accidentally falling


from the hands of nurses or doctors each year
• Two long or short landings at American airports each day

• 400 letters per hour which never arrive at their destination

Transforming Life…
Paradigm Shift Why 6σ
Comparing 6σ with 3σ

The 3σ Company The 6σ Company

• Spends 15~25%of sales dollars on cost • Spends 5%of sales dollars on cost of failure
of failure

• Produces 66,807 ppm opportunities • Produces 3.4 ppm opportunities


• Relies on capable processes that don’t
• Relies on inspection to find defects produce defects
• Believes high quality is expensive • Knows that the high quality producer is
the low cost producer
• Does not have a disciplined approach
to gather and analyze data • Use Measure, Analyze, Improve, Control
and Measure, Analyze, Design
• Benchmarks themselves against their • Benchmarks themselves against the best
competition in the world
• Believes 99% is good enough • Believes 99% is unacceptable

• Define CTQ’s internally • Define CTQ’s externally

Transforming Life…
6σ as the Biz Strategy What is 6σ

1. It is a statistical measurement.
It tells us how good our products, services, and processes really are.
6σ helps us to establish our course and gauge our pace in the race for total
customer satisfaction.

2. It is a improvement tool.
It’s a full packaged tool applying to design, manufacturing, sales & SVC.

3. It is a business strategy
It can greatly help us gain a competitive edge
As you improve the σ rating of a process, the product quality improves and costs go
down. Naturally, the customer becomes more satisfied as a result.

4. It is a philosophy.
This is one of working smarter, not harder.
Also it makes fewer and fewer mistakes in everything we do.

Transforming Life…
What is New Strategically ? What is 6σ

¾ Alignment of Six Sigma Initiative with Business Objectives

¾ Accountability
9 Metrics
• Activity based
• Outcome based.

¾ Executive Selection Of :
9 Champions to manage Projects
9 Projects formation
9 Belts to execute projects
• Green
• Black
• Master Black

Transforming Life…
What is New Tactically? What is 6σ
¾ Dedicated Resources.

¾ Improvements Instutionalized and “Cross-pollinated”

¾ Structure and Organization of Tools


9 Define
9 Measure
9 Analyze
9 Improve
9 Control

¾ Personal Computer Technology Facilitates :


9 Statistics
9 Extracting information from data

Transforming Life…
AIM of 6σ the Activity What is 6σ
Shift to
Precise but not Accurate Target Shifting to Target &
Reducing Variation
T
T USL USL Object
Object
USL USL
of
of6σ
6σisis
μ
μ Accurate but not Precise Shift
Shiftto
to
Target
Target
T
USL USL Reducing
Reducing
variation
variation
μ

Reducing
Variation

Transforming Life…
Variation Need ?

Why isn`t the average alone, good enough ?

7.95 Target = 6 6.10


4.05 5.90
6.95 6.05
5.05 5.95
6.00 6.00

We need a way to quantify the “spread”


in the data

Transforming Life…
What is Variation What is 6σ

Why did this happen ?

Transforming Life…
What is Variation What is 6σ

Why did this happen ?

We may make a big mistake


only because we make
decision based on just
average.

So, we need additional information on variation. Data which expresses


variation we call “ Standard Deviation., Using Greek Alphabet, ó (Sigma)
represent the standard deviation.

Transforming Life…
Variation Exercise

(Count the Letter “ e” in the following text)

The Necessity of Training Farm Hands for First Class Farms in the
Fatherly Handling of Farm Live Stock is Foremost in the Eyes of
Farm Owners. Since the Forefathers of the Farm Owners Trained the
Farm Hands for First Class Farms in the Fatherly Handling of Farm
Live Stock, the Farm Owners Feel they should carry on with the
Family Tradition of Training Farm Hands of First Class Farmers in
the Fatherly Handling of Farm Live Stock Because they Believe it is
the Basis of Good Fundamental Farm Management

Transforming Life…
Six Sigma Methodologies

Six Sigma

DMAIC DFSS

•Existing •New product /Service/Process


product/Service/Process
•Existing
•Process performance needs product/Service/Process
improvement. optimized using DMAIC and
still doesn't meet the level of
•Not meeting customer customer specification or six
specification sigma level

Transforming Life…
Six Sigma Team Roles &Responsibilities
Sponsor Champion
Define Big Ys of Project Define Project
Define Strategic Business Objectives Select Team Members
Select MBB & BBs Clear Project Roadblocks
Select & Sponsor BB & GB Projects Orient Team
Review Progress Review Progress
Approve Project Definition & closure Project Speaker

Black Belt (BB) Green Belt (GB)


Full time Resource to Six Sigma Projects Part time Resource to Six Sigma Projects
Help Champion to select team members Use Quality tools to improve Process
Make Breakthrough Improvement in Process Execute & Deliver Project Results (Min 2 per year)
Execute & Deliver Project Results (5-10 per year) Communicate Project Statusts
Mentor & Guide Green Belts Sustain improved Process after Improvement
Training on Six Sigma tools & techniques
Lead Process Improvement teams
Communicate Project Status

Master Black Belt (MBB) Six Sigma Team


Depth Understanding -Philosophy,Goal & Application Functional Experts
Six Sigma Expert Part time Assignment
Train & Coach BBs,GBs & Team members Participate in the meeting
Drive/Direct/Steer Projects to success Help with administrative tasks
Approve Project Definition & Project Closure Meet with Champion for review
Business focus & dedication to Quality Make Recommendation or Change
Project Implementation & Closure

Transforming Life…
How to do 6σ ?

CONTENTS

DMAIC Approach

Transforming Life…
The DMAIC Approach How to do 6σ

Practical Statistical Statistical Practical


Problem Problem solution solution
Disciplined Problem-Solving thru DMAIC

Transforming Life…
Why DMAIC Approach How to do 6σ

We tend to start from


We Judge by Averages an Internal Perspective
… Start looking … Start from Outside-In!
at Variance!!
Practical Measure
Problem Phase

Lo to t
Statistical Analyze

ve his
W Ju art
e
Problem Phase

to P
m
Statistical Improve

p
Solution Phase

Practical Control
Solution Phase

Transforming Life…
The DMAIC Approach How to do 6σ
DEFINE
•Define Customers & their
MEASURE
expectations
• Develop Data Collection
•Define Scope (Start & End
Plan for each Metrics
of Process) defined
CONTROL
•Define Present and • Collect Data from many
• Control Improvements
to keep the Process on Futuristic Process Map sources to determine type
the New Course •Define Deliverables & of defects
(Sustaining on the gains) Time Frames • Compare this with Voice of
Customer-Survey Result
• Develop how Progress will
be measured

ANALYZE
IMPROVE
• Determine Root Cause of
• Design Creative Solution Defects & Opportunities of
to fix & prevent problem Improvement
using technology (mistake
• Identify Sources of Variation
proofing) and discipline
• Identify Resource Required
• Study & Analyse Micro
& Cases what could cause
Level Activities which are
change to fail (Failure
creating Variation
Modes)
Transforming Life…
The Focus of Six Sigma

Y= f( X)
To get results ,should we focus our behavior on the Y or X?

‰ Y ‰ Xi……….Xn
‰ Dependent ‰ Independent
‰ Output ‰ Input- Process
‰ Effect ‰ Cause
‰ Symptom ‰ Problem
‰ Monitor ‰ Control

Historically the Y,……….with Six Sigma the Xs

Transforming Life…
D-M-A-I-C

DEFINE MEASURE ANALYZE


MEASURE IMPROVE CONTROL

Identify Project CTQ


Develop Project Charter
Define Process Map
Develop Measures
Establish Performance Standard
Establish Process Capability Generate & Select
Solutions
Implement Solutions

Define Performance Objectives


Identify Source of Variations Monitor Improved Performances
Standardization & Documentation

Transforming Life…
Road Map : Define

DEFINE MEASURE ANALYZE


MEASURE IMPROVE CONTROL

Identify Project CTQ Develop Project Charter Define Process MAP

DMAIC
DMAIC Transforming Life…
Case Study 6σ Common term

ABCL Ltd. has been in the business of providing life insurance


covers. For the last 25 years the company was enjoying a state of
monopoly. Due to revision in the government policy in the year 2002
the company saw series of private players entering into the market.
Data provided by the marketing department in the last management
committee meeting showed that the company's market share has
further dipped from 89% in Quarter 4 of 2002 to 82% at the end of
Qtr 1 in 2003. Concerned by this, management advised the quality
head to conduct a customer satisfaction survey and find out the
reasons for low share. The quality department conducted a
customer satisfaction survey of 50 customers who had bought the
policy from ABCL Ltd. in the period of January to April 2003. The
survey results showed customer dissatisfaction due to high policy
issuance TAT. The average TAT for policy issuance as perceived by
the customers was 30 days. Based on the results it was estimated
that the company is losing business to the tune of Rs.20 lakhs per
month.

DMAIC Transforming Life…


Case Study 6σ Common term

Prepare a Project Charter using the case study

Participants to use Yellow Belt Worksheet

DMAIC Transforming Life…


Case Study 6σ Common term

Problem Statement: Policy Issuance TAT (What) of 30 days (extent)


for the period of January – April 2003 (when) is leading to a loss of
2.4 crores per annum (impact).

Goal Statement: Reduce (verb) the TAT from 30 days (From) to 15 days
(goal) by August 30 2003 (deadline).

DMAIC Transforming Life…


CTQ Examples 6σ Common term

Area : Call Center


Customer Quote 'I consistently wait too long to speak to a
representative.'

CTQ Name : Representative Responsiveness


CTQ Measure Time on hold (seconds)

CTQ Less than 60 seconds from call connection to the automated


Specification response system

DMAIC Transforming Life…


Examples 6σ Common term
Area: Book Publisher
Customer Quote: 'I can't stand typos in books I purchase.’

CTQ Name : Typographic Quality

CTQ Measure : Number of typographical mistakes

CTQ Specification : Zero typographical mistakes

DMAIC Transforming Life…


Define: Identify Project CTQs

Who is the Customer?

PROCESS:

Input Output
Supplier Process Customer

What is critical to the Quality of the Process?


………according to your Customer !

DMAIC Transforming Life…


Example of SIPOC

Example of a Photocopying Process

DMAIC Transforming Life…


SIPOC – High Level Process Mapping

Objective :Developing High level Process mapping

• Work in a team ,Develop a SIPOC format Process MAP


• Define & name the process
• Establish Start & End Points
• Identify Major Customers and Output Requirement of the Process
• Identify Key Suppliers and Inputs to the Process
• Determine & MAP the 4-7 steps of the Process

Time : 10 Minutes

DMAIC Transforming Life…


Scoping
Longitudinal

Scoping
Lateral
Longitudinal
Starts after receipt of Proposal
Form from the customer
Ends at the despatch from HO
Lateral
Despatches for a Particular Zone
All despatches during shift A
Despatch through transporter X

DMAIC Transforming Life…


Road Map : Measure

DEFINE MEASURE ANALYZE


MEASUREIMPROVE CONTROL

Establish Performance Establish Process


Develop Measures
Standard Capability

DMAIC Transforming Life…


Data Types What is 6σ

Discrete

DMAIC Transforming Life…


Summarize Data

Average (Mean)

Express Centre of data Median

Mode
(Centre)

Range

Express Centre of data SPAN

Standard Deviation
(Variation)
Variance

DMAIC Transforming Life…


Power of Measure What is 6σ

We don’t know what we don’t know.


If we can’t express what we know in the form
of numbers, we really don’t know much about
it.

If we don’t know much about it,


we can’t control it.

If we can’t control it, we are at the mercy of


chance.

DMAIC Transforming Life…


Power of Measure What is 6σ

Our survival is dependent upon growing the business.


Our business growth is largely determined by customer satisfaction.
Customer satisfaction is governed by quality, price, and delivery.
Quality, price, and delivery are controlled by process capability.
Our Process capability is greatly limited by variation.
Process variation leads to an increase in defects, cost, and cycle time.
To eliminate variation, we must apply the right knowledge.
In order to apply the right knowledge, we must first measure it.
Measure the problem, we‘ll get the right knowledge.

DMAIC Transforming Life…


The Origin of Sampling What is 6σ

How to Collect Data ?

1. Shake it well No bias

2. Take one spoon Sampling

3. Make Decision Based on


Statistics
4. Action

DMAIC Transforming Life…


Operational Definition – One illustration

How much liquid has been consumed?


Half Glass……...is the Quantity same?

DMAIC Transforming Life…


Some Tools

CONTENTS

Histogram
Scatter Plot
Pie Chart
Pareto

DMAIC Transforming Life…


Histogram

Purpose : Use to examine the shape and spread of sample data

HISTOGRAM divides sample values into many intervals called bins.


Bars represent the number of observations falling within each bin (its
frequency). Observations that fall exactly on an interval boundary are
included in the interval

DMAIC Transforming Life…


Scatter Plot
Purpose : Scatterplots are also useful for plotting a variable over time.
This is especially useful for data that are not entered in chronological
order or were collected at irregular intervals.

DMAIC Transforming Life…


Pie Chart

Purpose : Used to display the proportion of each data category


relative to the whole data set.

DMAIC Transforming Life…


Pareto Chart

Purpose : A Pareto chart can be used to prioritize defects according


to type or source of defect. Basically, a Pareto chart is a type of bar
graph.
It can help weed out the vital few types or sources of defects from the
trivial many. It works on principle 80-20. It is a prioritization chart
which helps to decide the improvement goals

DMAIC Transforming Life…


Pareto Chart

Pareto Chart

300 100

80
200

Percent
Count

60

40
100

20

0 0

rs
Defect D1 D2 D3 D4 D5 D6 D7 he
Ot

Count 80 60 50 45 20 17 15 9
Percent 27.0 20.3 16.9 15.2 6.8 5.7 5.1 3.0
Cum % 27.0 47.3 64.2 79.4 86.1 91.9 97.0 100.0

Approx 80% of Defects from Defect D1+D2+D3+D4

DMAIC Transforming Life…


Exercise

All Team members to note down the following about themselves

1. Height and Weight


2. Distance you drive to Work
3. Mode of Vehicle used
4. Colour of Cab used
5. Time taken in the morning
6. Time taken in the evening
7. Number of Co Travellers
8. Number of Males and Females in Cab

DMAIC Transforming Life…


Exercise

Data Collection template to be designed and own data to be filled


Team Leader to Collect Data from all the other members

Transfer to Flip chart

Leader of each group to move around from table to table


and collect consolidated data

1. Create Histogram with Class Intervals on Height


2. Create Scatter Plot on Height Vs. Weight
3. Create Pie Chart on Number of Males/ Females
4. Create Pareto on Mode of Vehicle

DMAIC Transforming Life…


Need for Z Value Z Value

Process Performance

Purchase Order Generation ) 98% Accuracy

Accounts Receivables ) 33 days average aging

Customer Service
) 82% rated 4 or 5 on responsiveness

Supplier Delivery
) 95 % on-time delivery

Which process is performing best ?


None as there is no Common Benchmark

DMAIC Transforming Life…


Need for Z Value Z Value

A Universal Measurement Scale ...


Sigma

7
6
5
4
ε DPMO
3
On one condition : 3.4

233
Calculate the defects and
estimate the opportunities 6210
in the same way...
66810

DMAIC Transforming Life…


Need for Z Value Z Value

Process Performance Z Value

Purchase order booking ) 98% Accuracy ) 3.54

Accounts Receivables ) 33 days average aging )1.54

Customer Service ) 82% rated 4 or 5 on


)2.91
responsiveness

Supplier Delivery ) 95 % on-time delivery )3.29

Now we can say which is performing the best ?


There is a Common Benchmark without any Dimensions

DMAIC Transforming Life…


Defect 6σ Common term

Defect :- Anything that results in customer dissatisfaction. Anything that


results in a Nonconformance

Transforming Life…
DPU/DPO/DPMO 6σ Common term

Defects Per Unit : Number of defects per unit


DPU Judging the process as “No good”, we could not know if it had a defect.
So 6σ handling it.

Ex) A Proposal form has 10 blanks, 2 blanks are wrong


DPU= Defect / Unit = 2 / 1 = 2

Defects Per Opportunity : Number of defects related opportunities per unit


DPO Expanding concept of DPU by opportunities

Ex) A Proposal form has 10 blanks, 2 blanks are wrong


2 Defect / (1Unit x 10 Opportunity) = 0.2, DPO=0.2

Defect Per Million Opportunities : Value of DPO x 1,000,000,


DPMO
Changing DPO to million unit because 6σ uses PPM(Part Per Million)

Ex) DPMO = 0.2 DPO x 1,000,000 = 200,000

Transforming Life…
CTQ 6σ Common term

Definition of CTQ Typical Tools

• Customer states as critical to quality


of product, service or process. ) Customer surveys
) Focus Groups Interview
• Most CTQ’s are customer-driven,but ) Customer needs Mapping
risk, economics, and regulation may ) Quality function
drive others.
deployment(QFD)
) Quick Market Intelligence
Ex.) • Spec. of anything part ) Logic Tree
• Accuracy and reliability of billing ) Pareto Diagram
statements
• Time to repair
Main purpose of CTQ control is selecting
• Courteousness
the factors to the most important to customer.
It is not hard to do, but right to do!

DMAIC Transforming Life…


CTQ Examples 6σ Common term

Area : Call Center


Customer Quote 'I consistently wait too long to speak to a representative.'
CTQ Name : Representative Responsiveness
CTQ Measure
Time on hold (seconds)

CTQ Less than 60 seconds from call connection to the automated


Specification response system
Defect
Calls with hold time equal and greater than 60 seconds
Call
Unit 1 call

Opportunity 263 calls


Sigma: 3.75
Defects 21,501 calls

DMAIC Transforming Life…


Examples 6σ Common term
Area: Book Publisher
Customer Quote: 'I can't stand typos in books I purchase.’

CTQ Name : Typographic Quality


CTQ Measure : Number of typographical mistakes
CTQ Specification : Zero typographical mistakes
Defect : Any typographical mistakes
Unit : A word
Opportunity : Words per book

Defects : 2 typographical mistakes

Units : 100,000 (500 words/page x 200 pages/book)

Opportunities:1 per word

Sigma: 5.61

DMAIC Transforming Life…


Road Map : Analyze

DEFINE MEASURE ANALYZE


MEASURE IMPROVE CONTROL

Define Performance Identify Source


Objective of Variations

DMAIC Transforming Life…


Every process looks like this. . .

IN PROCESS
PROCESS OUT

. . . in theory

DMAIC Transforming Life…


What do you see here . . . Any clarity?

Table Phone Shadow

Pencil stand
Paper

Pad

Wire
Ring Pens

DMAIC Transforming Life…


See the Difference Now . . . .

Recall..One
picture is
better than
1000 words

Process Mapping is a graphic display of steps & activities that


constitute a process

DMAIC Transforming Life…


Definition of a Process

A Process Is A Collection Of Sequential Activities


That Takes One Or More Kinds Of Input And
Creates An Output That Is Of Value To The
Customer

DMAIC Transforming Life…


All Processes have variations

¾ All Repetitive Activities of a process have a certain amount of


fluctuations.
¾ Input , Process & Output measures will fluctuates.
¾ This fluctuation is called Variation.
¾ Variation is the Voice of the Process.
Measurement

Time

DMAIC Transforming Life…


Process
Variation is Evil ...
Every Human Activity Has Variability...
Customer
Specification

X
X
XXX
X XXXX
XXXXXXX X
XXXXXXXXXX defects
X XXXXXXXXXXXXXX
Target
Understanding Variability & Customer Specification
Is The Essence of Continuous Process Improvement

DMAIC Transforming Life…


Process Flow Charting Symbols

A process or Storage point


Task

Predefined
Start, End Activity

Delay Decision, Check

DMAIC Transforming Life…


Nature of Work – Value Analysis

Value-Added Work Non Value-Added


Work
Process steps that are Process steps that are
Essential to Produce & Deliver non-essential
the Product or Service to To produce & deliver the
meet the Customer’s Product or Service to meet the
Need & requirements. Customer’s Need & requirements.
Customer is willing to pay Customer is not willing to pay
For the step. for the step.
Process steps that
Are not essential
But that allow
Value –adding
Tasks to be done
Better/faster

Value Enabling- Work

DMAIC Transforming Life…


Type of Non-Value : Added Work

Internal failure Delay External failure

Preparation/Set-up Control/Inspection Move

• Look for
Re-evaluate, Remake, Redo, Recall, Recheck, Rework,
Repeat, Redesign, Revise, Reject, Retest, Reship, Return,
Reissue, Re-measure, Retype

DMAIC Transforming Life…


Process Mapping

Team Exercise

• Purpose : To get graphical illustration of the process which


creates an output

9 List General Process steps & Major customer key Output variables
(CTQ)
9 Identify Value added (VA) & non-value added (NVA) steps in
process
9 Show CTQ at each process step.
9 CARES (Combine, Add, Re-arrange ,Eliminate, Simplify)

DMAIC Transforming Life…


Process

In any case. . .

X function
unction
Y

DMAIC Transforming Life…


Process
MAN METHOD

MEASUREMENT

Machine
Service function
unction
other
This Time
Time
Product Nex
t Ti
me
Material
MACHINE MATERIAL
ENVIRONMENT

Y = f( lots of x’s)
DMAIC Transforming Life…
Source & Type of Variations

MAN
MACHINE P
Source of Variations-6Ms R
MATERIAL
O
C
METHOD
E
S
MOTHER NATURE
S
MEASUREMENT
Type Definition Names
Common No undue influence by one of Expected, Normal,
Cause the 6Ms Random
Special Undue influence of the one of Unexpected,
Cause the 6Ms Abnormal, Non-
Random

DMAIC Transforming Life…


Preparing for the Analyze step

Start thinking in Scientific Terms

Y = f ( X1,X2,X3…,Xn)

¾ Y = Relates to the Outputs


¾ X = Relates to the Process & Inputs
¾ Identify Xs that might Explain Variation in the Output
measures
¾ Collect Data Efficiently – Both the Ys & suspected Xs

DMAIC Transforming Life…


Cause & Effect Diagram (Fishbone)
MAN MACHINE
MEASUREMENT

Root Causes – Grouped in Six Categories


Man ,Machine, Material, Method,
Measurement & Mother Nature

MATERIAL METHOD MOTHER NATURE

DMAIC Transforming Life…


5 Why Analysis

The 5 Whys is a technique used in the Analyze phase of the Six


Sigma DMAIC methodology. It's a great Six Sigma tool that doesn't
involve data segmentation, hypothesis testing, regression or other
advanced statistical tools, and in many cases can be completed
without a data collection plan.

By repeatedly asking the question "Why" (five is a good rule of


thumb), you can peel away the layers of symptoms which can lead
to the root cause of a problem. Very often the ostensible reason for
a problem will lead you to another question. Although this technique
is called "5 Whys," you may find that you will need to ask the
question fewer or more times than five before you find the issue
related to a problem.

DMAIC Transforming Life…


5 Why Analysis (Examples)
Problem Statement: Customers are unhappy because they are being shipped products that
don't meet their specifications.

1. Why are customers being shipped bad products?


- Because manufacturing built the products to a specification that is different from what the customer
and the sales person agreed to.

2. Why did manufacturing build the products to a different specification than that of sales?
- 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 being communicated or written
down.

3. Why does the sales person call the head of manufacturing directly to start work instead of following
the procedure established in the company?
- 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).

4. Why does the form contain an approval for the sales director?
- Because the sales director needs to be continually updated on sales for discussions with the CEO.

A non-value added signature authority


is helping to cause a process breakdown

Transforming Life…
5 Why Analysis (Examples)
Problem Statement: You are on your way home from work and your
car stops in the middle of the road.

1. Why did your car stop?


- Because it ran out of gas.

2. Why did it run out of gas?


- Because I didn't buy any gas on my way to work.

3. Why didn't you buy any gas this morning?


- Because I didn't have any money.

4. Why didn't you have any money?


- Because I lost it all last night in a poker game.

5. Why did you lose your money in last night's poker game?
- Because I'm not very good at "bluffing" when I don't have a good
hand

teach a person to "bluff" a hand


than it is to try to directly solve the stated problems

Transforming Life…
Road Map : Improve

DEFINE MEASURE ANALYZE


MEASURE IMPROVE CONTROL

Generate &
Implement Solutions
Select Solutions

Deliverables : Deliverables :
¾ Statistically Propose ¾ Proposed Solution
Solution which will meets or exceeds the
meet or exceed the Quality improvement
quality improvement Goal.
goals.

DMAIC Transforming Life…


Improve Phase Objectives

9 To develop a proposed Solution


9 Identify an Improvement Strategy
9 Experiment to determine a Solution
9 Quantify financial opportunities
• Confirm that Proposed Solution will meet or Exceed Performance
Objective
9 A Pilot include one or more small scale of Tests of the Solution in a
real world business environment.
9 To Statistically confirm that an Improvement Exists (Hypothesis
Test).
• To Identify resources required for a successful Full-Scale
Implementation of the Solution.
• To Plan & Execute full Scale Implementation including training,
support, technology rollout, Process and documentation changes.

DMAIC Transforming Life…


Generate And Select Solutions

Focus And Select Vital


ANALYZE Few Causes
IMPROVE
Generate Ideas
BRAINSTORM (Raw “Material” for
Solutions)

Synthesize Ideas
(Build potential
FILTER Solutions)
Refine, Evaluate & Select Pilot
(Select Best Solutions)
Develop
Solution
“Proposal “

DMAIC Transforming Life…


Counter Measures

Sl.# Root Cause Counter Measure Practical / Feasible Effect


(Xs) (Solution) Logical (Impact )

DMAIC Transforming Life…


Why PILOT

• Improved Solution
• Improved Implementation
• Lower Risk of failure
• Confirm Expected Result & Relationship
• Ability to better predict financial saving from proposed
Solution
• Increased Opportunity for Feedback
• Increased Buy-In.
• Get early version of a Solution out quickly to a particular
segment.

DMAIC Transforming Life…


Failure Mode & Effect Analysis
(FMEA)
• FMEA is a simple tool to prioritize the failure modes & actions
Tool
• By understanding why and how we fail, we can plan for success

• It works on the belief that proactiveness saves time

• Typically, FMEA is applied on the output of root-cause analysis,


& is a better tool for focus / prioritization as compared to multi-

FMEA
voting

• We shall focus on Process FMEA (Design FMEA is used in


designing products)

DMAIC Transforming Life…


FMEA Concepts & Output

Effect
Severity

Risk Action
Process / Product Failure
Cause Priority Plan
Characteristics Mode
Number
Occurrence

Control
Detectability

• Risk Priority Number (RPN) = S*O*D


• Severity, Occurrence & Detectability are measured on a scale of 1-10

DMAIC Transforming Life…


FMEA Concepts & Output

• Process / Product characteristics - Purpose of the product or


Process
• Failure Mode - How can the product /
process fail to function?
• Effects - Which effects are most
severe to customer?
• Causes - Which causes are most
likely to occur?
• Controls - Ability for current controls
to detect causes?
• RPN - Which high risk cause we
work on first?
• Action Plan - Recommended actions &
responsibilities

DMAIC Transforming Life…


Transforming Life…
Scales of ‘SOD’ - Occurrence

• Occurrence is the probability that a specific cause will result in the


particular failure mode

• Rating Scale:

DMAIC Transforming Life…


Scales of ‘SOD’ - Delectability

• Detectability is the probability that a particular cause will


be detected

• Rating Scale:

DMAIC Transforming Life…


FMEA Table

FMEA Table

DMAIC Transforming Life…


FMEA Summary

• Usually, FMEA is used to prioritize root-causes for discrete defect


definitions on ‘Y’ where Regression / ANOVA are not possible
• Typically, final part of the FMEA table in terms of ‘recommended
actions’ & improved SOD rating gets filled during IMPROVE &
CONTROL phases.
• Recommended action is nothing but a counter-measure to
eliminate/ transition a root-cause that will be studied in step 9 of
DMAIC.
• New SOD ratings shall be given only at the time of project closure
when counter-measures would have been implemented & effect
seen on “failure mode”
• Project teams must review the RPN’s periodically

DMAIC Transforming Life…


Road Map : Control

DEFINE MEASURE ANALYZE


MEASURE IMPROVE CONTROL

Monitor Improved Standardization &


Performance Documentation

Deliverables : Deliverables :
¾ Monitor Process Stability, ¾ Implement Process
Process capability & Process control system &
control after implementing Project Closure
solution on a ongoing basis.

DMAIC Transforming Life…


Control – Main Objective

• Make sure Process stays in control after the implementation of the


Solution.
• Quickly Detect the out of control state and determine the associated
special cause so that action can be taken to correct the problem.
• Keep Xs with in tolerance by using appropriate controls (Risk
Management, Mistake Proofing)
• Apply Control Charts to Xs to monitor & control variation.

• Understand Implication on existing quality plans due to


modifications of current control systems.

• Establish transition plan for maintaining control of improved


process.

DMAIC Transforming Life…


Process Control System
• A process Control System
9 Strategy for maintaining the improved process performance over time.
9 Identify specific tools required for sustaining the process
improvement or gains
• A Control System may incorporate
9 Risk Management
9 Mistake proofing device
9 Statistical Process Control (SPC)
9 Data Collection Plans
9 Ongoing Measurement
9 Audit Plan
9 Response Plans
9 Product drawing
9 Standardization
9 Process documentation
9 Process Ownership
9 Process Certification

DMAIC Transforming Life…


Technical Definition of dashboards Dash Board

What is a DashBoards?

A dash boards is numeric indicator of all the critical parameters


needed to drive Process Engine.Two measures are on the dash
boards

Effectiveness Measures: Input/Output


Efficiency Measures : Process

DMAIC Transforming Life…


Technical Definition of dashboards Dash Board

What measurements do you use ?


How do you use these measures ?
What measures get the most attention in your areas ?
Do these measure assure a customer focus?
Do these measure have an input/output focus ?

Switching to a sigma-based system :


Provide uniform measure of:
• Process performance
• Variation
• Quality

DMAIC Transforming Life…


Output Measures Dash Board

Defining Y – Output Measures :: Wing-to-Wing Measure

• This Measure is from Customer Point of View


• Includes whole process not just ‘touch time’
• End to End Measure - Input to Output

DMAIC Transforming Life…


Monitoring - Dashboard

A Visual Display Of current performance of Key Measures like Input ,Process


& Output indicates status as “ In-Control “ or Out-Control “

Process Input
Input
Input

Output
Input

DMAIC Transforming Life…


How you can get Involved today…

™ Think about your own Metrics.

™ Who are your customers – Internal and External.

™ What do you deliver to your customers ?

™ What do they think is critical to their using your product to get their job done?

™ How do you measure up ?

™ Participate in Black Belt or Green Belt Projects.

™ Your role as project team member or resource to project.

™ Become an advocate…….

Transforming Life…
Transformation due to Six Sigma

Customer Focus

Ro
e
icl

bu
eh

st
V

Pr
ge

oc
an

es
Ch

e
ess
ur
Te

lt
Cu
am

ta
ing

Da
Financial Gains

Transforming Life…
.

THANK YOU
FOR YOUR TIME

Transforming Life…
Z Value 6σ Common term
Definition of Z Value Concept of Z Value

It is standard normalized**value for various


*
normal distributions to make easy LSL USL
statistical analysis. 1σ
X -T
Z=
Z is ratio value that difference between σ

X(USL***or LSL) and target is divided


standard deviation (s). T=μ

In a Process, if six standard deviations are


That is numeric part of σ Level. between spec.(USL, LSL), then we call “6σ
level” .
When Z is 6, it is 6σ level.
It is good process that has 3.4ppm, that is 3
or 4 defects per million.

* Normal distribution : As bell shaped distribution, left side is same as right side by axis mean(μ)
** Standard normal distribution : mean is “0”, standard deviation is “1” normal distribution
*** USL : Upper Spec Limit / LSL : Lower Spec Limit

Transforming Life…
Visualizing the Answer Sigma & Cp

20
25 30

Process Average
(15 seconds)

Design width
(30 seconds)

Since this is a one sided specification (upper limit only) we are only
concerned with the right side of this diagram. There are 3 units of
standard deviation between the process average and the closest
specification limit. Therefore, this is a 3 sigma process.

Transforming Life…
Calculating the Answer Sigma

Z Value or Sigma Value

Z= USL - X
σ

Z = 30 - 15 = 3
5

Transforming Life…
Great Truths about
Six Sigma

brought to us by various cartoonists

Transforming Life…
Always listen to the market

Transforming Life…
Use check-lists for testing

ears
neck
feet

Transforming Life…
Select significant attributes for your forecaster

Which one
Is mine?

Transforming Life…
Support! different situations by specific tools

Transforming Life…
Look for efficient solutions

Transforming Life…
What suits one customer might not suit the next

Transforming Life…
Forecasting and optimization are complex

Come on! It can‘t go


wrong every time...

Transforming Life…
Not every presentation is successful

Transforming Life…
Simulation expertice helps

Transforming Life…
Get Better or Get Beaten....

Deadline is deadline !

Transforming Life…
Maths is not everything

Transforming Life…