Introduction:

Fundamentals / Bases for Six Sigma:

 Quality
 Customer Requirement
 Better than the competition (Improving your product)
CP ↓ + Profit ↓ = SP ↓
In this case, the company must cut their costs without any reduction in the profits. For this,
company must strive for Continuous Development.
Input(X) → Process → Output(Y) (Internal & External) → These are determined by the
customers (For internal, stakeholders, for external, end users)
Y = f(X)
O/p is not always uniform. This is called variation. Six-Sigma is used to reduce the variation.

Lean
Lean focuses on reducing the waste. Lean itself can sustain on its own.

Six-Sigma
Six sigma is defined based on 3M:

Measurements (3.4 defects per million) – 99.997% accuracy.

Defect is the micro observation of the problems in a product. Defective means, if an object
has some defects, it is termed to be defective.
Million is used in six sigma as a benchmark because, in terms of percentage, if the
percentage say out of 100 products 98 are good, then 2% is defective. But the magnitude
increases with increase in number. Hence, PPM is used as a benchmark as we achieve 3.4
defects per million, it is not worth to strive to reduce the 3.4 ppm further.
The defects that are allowed in a product depends on the industry. For example, airplane
industry must have very low defect % while the industry like steel has 50% defect rate,
which is considered as industry standard.

Methodology (DMAIC and DMADV)

DMAIC- Define (Defining the requirement)
Measure (Collect Data)
Analyze (Identify the root cause)
Improve (Try to resolve the root cause- solution)
Control (Sustain the improvements)
DMADV- Define, Measure, Analyze, Design, Validate/Verify.
Main difference between the two is that DMAIC (for green belts) emphasizes on existing
processes, and DMADV (for black belts) emphasizes on design of new processes

Management Philosophy the objective of the company. (Study Mumbai Dabbawala

Case)
On an average, a green belt project takes up to 3-4 months, black belt up to 6 months and a
master black belt requires up to 1-2 years, but there is no standard rule to define them.
Efficiency Effectiveness
Measured from organization pt. of From customer point of view.
View.
DMAIC
Define – Capture VOC (Voice of Customers) which is external from the customer feedback,
through the available channels VOB (Voice of Business) is internal, from the people inside
the organization.
The VOC is not just enough to work upon. The VOC is converted into quantifiable
terms, like CTQ (Critical to Quality).

VOC/VOB CTQ
Deliver me product faster Turnaround time
Newly built multiplex is empty % utilization in multiplex
Response to the queries must be faster Turnaround time
Not a lot of people visiting the mall Footfall
Document filled incorrectly No of errors
Deliver me the pizza hot Temperature
Operator took a lot of time to complete the Waiting time
activity
We could not process the loan documents Processing time
within the time promised to customer
Loan application form submitted by officer Number of errors
has too many errors

Before going to the CTQs, the voices are analyzed so that what areas to worked on can be
determined.
For this, two methods are available. They are:
a. Affinity Matrix: This is made by putting all the voices in a single board and
categorizing them into small segments so that they can be assigned a CTQ in a simple
way.
b. KANO Model: It is used to analyze and prioritize the voices.
It is done as a matrix between Functionality and Satisfaction.
Highly Satisfied

Delighter
One dimensional. More the better
Functional
Dysfunctional
Must be

Dissatisfaction
Always work on must be features, then one dimensional and then focus on delighters as
delighters are the features that make the user experience better.
(Look for the affinity diagram in the pdf).

After creating the CTQ, a project charter must be prepared regarding the future framework.
Also, it is used to get the approval. The project charter must have the following elements:

Improve marker quality by 20%

Business Case Opportunity statement
For markers, in the last six months rejection rate has $100,000 due to loss of
increased to 20% contributing to loss in sales material
Goal Scope- Day and Night Shift
CTQ Baseline Target Timeline Out of scope- Logistics
% rejection 20% 10% 4 months
SMART
Timeline Phase St Date Duration Team
D 1 week Sponsor (YB)- GM
M 2 weeks Champion (YB)- PL
A 3-4 weeks Mentor (BB/MBB)- Quality
I 3 weeks Project Leader (GB)-
Production Head
C 3-4 weeks Other team members (WB)
Once the sign off has been done on the project report, we can proceed with further steps in
define phase. That is to map the process.

Map the process: Mapping the process can be done in the following ways:
 SIPOC (Supplier, Input, Profit, Output, Customer) – It is a bird’s eye view of the
overall project/tasks. It is also known as COPIS (Since customer is easy to identify, so
deduction is easier)

Serve a cup of tea for the guests

Supplier Input Process Output Customer
Kitchen Milk, Sugar,  Boiling the water Cup of Guest
(Respective Tea powder,  Add milk, sugar to tea
store of the Water, Ginger, the boiling water.
supplier.) Vessel, Cup  Add ginger
 Filter the tea and
pour it in the cup

 Flow Chart:

Start

D1 P1

P2

Dec P5

A typical flowchart.

P3 P4

P6

Stop
There are extensions of flow chart which are cross functional flow chart, which describes all
the steps & procedures involved at each step and value stream map, which indicates the
time taken for each step in the flow chart.

Lean Reducing Waste: There are 8 ways to achieve this, named as TIMWOODS. In these
categories, if any type of wastage falls into two or more categories, it is entered only once.
For example, movement of material inside the company fits both motion and waiting so it is
entered only in one of the two. All the below mentioned entries are a waste hence they
must be reduced or avoided.

 Transportation (The products and supply you do with external sources)

 Inventory (The stock you hold)
 Motion (Moving of materials within the organization)
 Waiting (For material, approvals, etc.)
 Overproduction (Producing more than needed)
 Over processing (Doing more than what is required)
 Defects (Issues with the products or services)
 Skills (Human talents)
To tackle the above wastes, we use the EARS approach. Which is to Eliminate, Automate,
Reduce and Standardize.