02 BB Manual Define v12 4 PDF

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Lean Six Sigma

Black Belt Training
Define Phase
Understanding Six Sigma
Welcome to the Lean Six Sigma Black Belt Training Course.
This course has been designed to build your knowledge and capability to improve the
performance of processes and subsequently the performance of the business of which you are a
part. The focus of the course is process centric. Your role in process performance improvement
is to be through the use of the methodologies of Six Sigma, Lean and Process Management.
By taking this course you will have a well rounded and firm grasp of many of the tools of these
methodologies. We firmly believe this is one of the most effective classes you will ever take and it
is our commitment to assure this is the case.
We begin in the Define Phase with “Understanding Six Sigma”.
LSS Black Belt Manual v12.4 MT © Open Source Six Sigma, LLC
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Overview
The fundamentals of
this phase are Understanding Six Sigma
Definitions, History,
Strategy, Problem Definitions
Solving and Roles and
Responsibilities. History
We will examine the

Strategy
meaning of each of
these and show you
Problem Solving
how to apply them.
Roles & Responsibilities
Six Sigma Fundamentals
Selecting Projects
Elements of Waste
Wrap Up & Action Items
What is Six Sigma…as a Symbol?

Variation is our enemy. Our
σ, sigma, is a letter of the Greek alphabet. customers, both internal and
external, have expectations
– Mathematicians use this symbol to signify Standard Deviation, an relative to the deliverables from
important measure of variation. our processes. Variation from
– Variation designates the distribution or spread about the average of those expectations are likely
any process. dissatisfiers to them. Much of
this course is devoted to
identifying, analyzing and
Narrow Variation Wide Variation eliminating variation. So let’s
begin to understand it.
The Blue Line designates

narrow variation while the
Orange Line designated wide
variation.
The variation in a process refers to how tightly the various outcomes are clustered
Obviously the less variation
around the average. No process will produce the EXACT same output each time.
within a process the more
predictable the process is,
assuming the Mean is not moving all over the place. If you took the height of everyone in the class
would you expect a large variation or narrow variation?
What if you had a few professional basketball players in the room, would that widen or narrow the
variation?
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What is Six Sigma…as a Value?

Sigma is a measure of
deviation. The
mathematical calculation
for the Standard Deviation
of a population is as
shown.
 Sigma can be used
interchangeably with the
statistical term Standard By definition, the Standard Deviation is the distance
Deviation.
between the mean and the point of inflection on the
 Standard Deviation is
the average distance of normal curve.
data points away from the
Mean in a distribution. Point of Inflection
When measuring the

sigma value of a process
we want to obtain the
distance from the Mean to
the closest specification
limit in order to determine
how many Standard
Deviations we are from
the mean….our Sigma
Level!
The Mean being our optimal or desired level of performance.
What is Six Sigma…as a Measure?
The probability of creating a defect can be estimated and translated

into a “Sigma” level.
The higher the sigma level, the better the performance. Six Sigma refers to a process having six
Standard Deviations between the average of the process center and the closest specification limit or
service level.
This pictorial depicts the percentage of data which falls between Standard Deviations within a Normal
Distribution. Those data points at the outer edge of the bell curve represent the greatest variation in our
process. They are the ones causing customer dissatisfaction and we want to eliminate them.
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Measure
“Sigma Level” is:

– A statistic used to describe the performance of a process
relative to the specification limits
– The number of Standard Deviations from the Mean to the
closest specification limit of the process
USL
6 Sigma
5 Sigma
4 Sigma
3 Sigma
2 Sigma
1 Sigma
The likelihood of a defect decreases as the number of Standard Deviations

that can be fit between the Mean and the nearest spec limit increases.
Each gray dot represents one Standard Deviation. As you can see, the Normal Distribution is tight.
Said differently, if all the outputs of our process fall within six Standard Deviations from the Mean,
we will have satisfied our customers nearly all the time. In fact, out of one million customer
experiences, only 3.4 will have experienced a defect.
What is Six Sigma…as a Metric?

Each of these metrics serves a different purpose and may be used at different levels in the
organization to express the performance of a process in meeting the organization’s (or customer’s)
requirements. These are some key metrics used in Six Sigma. We will discuss each in detail as
we go through the course.
 Defects 20
 Defects per unit (DPU)
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 Parts per million (PPM)
16
 Defects per million opportunities (DPMO)
14
 Rolled Throughput yield (RTY)
 First Time Yield (FTY) 12
 Sigma(s) 10
8
0 20 40 60 80 100
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What is Six Sigma…as a Benchmark?
This data represents the sigma level of companies. As you can see less than 10% of companies
are at a 6 sigma level!
Yield PPMO COPQ Sigma
99.9997% 3.4 <10% 6 World Class Benchmarks
99.976% 233 10-15% 5 10% GAP
99.4% 6,210 15-20% 4 Industry Average
93% 66,807 20-30% 3 10% GAP
65% 308,537 30-40% 2 Non Competitive
50% 500,000 >40% 1
Source: Journal for Quality and Participation, Strategy and Planning Analysis
What does 20 - 40% of Sales represent to your Organization?
What is Six Sigma…as a Method?
The Six Sigma Methodology is made up of five stages: Define, Measure, Analyze, Improve and
Control.
Each has highly defined steps to assure a level of discipline in seeking a solution to any variation or
defect present in a process.
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What is Six Sigma…as a Tool?
Six Sigma contains a broad set of tools interwoven in a

business problem-solving methodology. Six Sigma tools
are used to scope and choose projects, design new
products and processes, improve current processes,
decrease downtime and improve customer response time.
Six Sigma has not created new tools, it has simply

organized a variety of existing tools to create flow.
Customer Value
Management Product Process Process System Functional
Responsiveness,
Cost, Quality, = EBIT, (Enabler) , Design , Yield , Speed , Uptime , Support
Delivery
Six Sigma has not created new tools. It is the use and flow of the tools that is important. How they
are applied makes all the difference.
Six Sigma is also a business strategy that provides new knowledge and capability to employees so
they can better organize the process activity of the business, solve business problems and make
better decisions. Using Six Sigma is now a common way to solve business problems and remove
waste resulting in significant profitability improvements. In addition to improving profitability,
customer and employee satisfaction are also improved.
Six Sigma is a process measurement and management system that enables employees and
companies to take a process oriented view of the entire business. Using the various concepts
embedded in Six Sigma, key processes are identified, the outputs of these processes are prioritized,
the Capability is determined, improvements are made, if necessary, and a management structure is
put in place to assure the ongoing success of the business.
People interested in truly learning Six Sigma should be mentored and supported by seasoned Belts
who truly understand how Six Sigma works.
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What is Six Sigma…as a Goal?

To give you a better example the concept of the sigma level can be related to hanging fruit. The higher
the fruit the more challenging it is to obtain. And the more sophisticated the tools necessary to obtain
them.
Sweet Fruit
Design for Six Sigma
5+ Sigma
Bulk of Fruit
Process
3 - 5 Sigma Characterization
and Optimization
Low Hanging Fruit

3 Sigma Basic Tools of
Problem Solving
1 - 2 Sigma Ground Fruit

Simplify and
Standardize
What is Six Sigma…as a Philosophy?
General Electric: First, what it is not. It is not a secret society, a slogan or a cliché. Six Sigma is
a highly disciplined process that helps us focus on developing and delivering near-perfect products
and services. The central idea behind Six Sigma is that if you can measure how many "defects" you
have in a process you can systematically figure out how to eliminate them and get as close to "zero
defects" as possible. Six Sigma has changed the DNA of GE — it is now the way we work — in
everything we do and in every product we design.
Honeywell: Six Sigma refers to our overall strategy to improve growth and productivity as well as
a measurement of quality. As a strategy, Six Sigma is a way for us to achieve performance
breakthroughs. It applies to every function in our company, not just those on the factory floor. That
means Marketing, Finance, Product Development, Business Services, Engineering and all the other
functions in our businesses are included.
Lockheed Martin: We have just begun to scratch the surface with the cost-saving initiative called
Six Sigma and already we have generated $64 million in savings with just the first 40 projects. Six
Sigma uses data gathering and statistical analysis to pinpoint sources of error in the organization or
products and determines precise ways to reduce the error.
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History of Six Sigma
Simplistically, Six
Sigma was a
program initiated
around targeting a
process Mean
(average) six
Standard Deviations
away from the
closest specification
limit.
By using the process
Standard Deviation
to determine the
location of the Mean,
the results could be
predicted at 3.4
defects per million by
the use of statistics.
There is an allowance for the process Mean to shift 1.5 Standard Deviations. This number is another
academic and esoteric controversial issue not worth debating. We will get into a discussion of this
number later in the course.
The Phase Approach of Six Sigma

Six Sigma created a realistic and quantifiable goal in terms of its target of 3.4 defects per million
operations. It was also accompanied by a methodology to attain that goal. That methodology
was a problem solving strategy made up of four steps: measure, analyze, improve and control.
When GE launched Six Sigma, they improved the methodology to include the Define Phase.
Define Measure Analyze Improve Control
GENERAL ELECTRIC MOTOROLA
Today, the Define Phase is an important aspect to the methodology. Motorola was a mature culture
from a process perspective and did not necessarily have a need for the Define Phase.
Most organizations today DEFINITELY need it to properly approach improvement projects.
As you will learn, properly defining a problem or an opportunity is key to putting you on the right
track to solve it or take advantage of it.
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DMAIC Phases Roadmap
Define Phase Deployment
Here is a more granular

look at the Define
Phase.
This is what you will

later learn to be a Level
2 Process Map.
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Define Phase Deliverables
Listed here are the type of Define Phase deliverables that will be reviewed by this course.
By the end of this course, you should understand what would be necessary to provide these
deliverables in a presentation.
 Charter Benefits Analysis

 Team Members (Team Meeting Attendance)
 Process Map – high level
 Primary Metric
 Secondary Metric(s)
 Lean Opportunities
 Stakeholder Analysis
 Project Plan
 Issues and Barriers
Six Sigma Strategy

Six Sigma places the emphasis on the Process
– Using a structured, data driven approach centered on the customer, Six Sigma can resolve
business problems where they are rooted, for example:
 Month end reports
 Capital expenditure approval
 New hire recruiting
Six Sigma is a Breakthrough Strategy
– Widened the scope of the definition of quality

 Includes the value and the utility of
the product/service to both the
company and the customer.
Success of Six Sigma depends on the extent of

transformation achieved in each of these levels.
Six Sigma as a breakthrough strategy to process improvement. Many people mistakenly assume
Six Sigma only works in manufacturing type operations. That is categorically untrue. It applies to
all aspects of either a product or service based business.
Wherever there are processes, Six Sigma can improve their performance.
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Conventional Strategy
Conventional definitions of quality focused on conformance to standards.
Requirement Requirement
or or
LSL
Target USL
Bad Good Bad
Conventional strategy was to create a product or service that met certain specifications.
 Assumed if products and services were of good quality then their
performance standards were correct.
 Rework was required to ensure final quality.
 Efforts were overlooked and unquantified (time, money, equipment
usage, etc.).
The conventional strategy was to create a product or service to met certain specifications. It was
assumed if products and services were of good quality their performance standards were correct
irrespective of how they were met.
Using this strategy often required rework to ensure final quality or the rejection and trashing of some
products and the efforts to accomplish this “inspect in quality” were largely overlooked and un-
quantified.
You will see more about this issues when we investigate the Hidden Factory.
Problem Solving Strategy
The Problem Solving Methodology focuses on:

• Understanding the relationship between independent variables and the
dependent variable.
• Identifying the vital few independent variables that effect the
dependent variable.
• Optimizing the independent variables so as to control our dependent
variable(s).
• Monitoring the optimized independent variable(s).
There are many examples to describe dependent and independent

relationships.
• We describe this concept in terms of the equation:
• Often referred to as a transfer function
Y=f (Xi)
This simply states that Y is a function of the
X’s. In other words Y is dictated by the X’s.
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Problem Solving Strategy (cont.)
Y = f(x) is a key concept you must fully understand and remember. It is a fundamental principle to
the Six Sigma methodology. In its simplest form it is called “cause and effect”. In its more robust
mathematical form it is called “Y is equal to a function of X”. In the mathematical sense it is data
driven and precise as you would expect in a Six Sigma approach. Six Sigma will always refer to an
output or the result as a Y and will always refer to an input that is associated with or creates the
output as an X.
Another way of saying this is the output is dependent on the inputs that create it through the
blending that occurs from the activities in the process. Since the output is dependent on the inputs
we cannot directly control it, we can only monitor it.
Example
Y = f(x) is a transfer function tool to determine what input variables (X’s) affect the output
responses (Y’s). The observed output is a function of the inputs. The difficulty lies in determining
which X’s are critical to describe the behavior of the Y’s.
The X’s determine how the Y performs.
In the Measure Phase we will introduce a tool to manage the long list of input variable and their
relationship to the output responses. It is the X-Y Matrix or Input-Output Matrix.
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Y = f(X) Exercise
Exercise:
Consider establishing a Y = f(x) equation for a

simple everyday activity such as producing a
cup of espresso. In this case, our output or Y is
espresso.
Espresso =f ( X1 , X2 , X3 , X4 , Xn )
Notes
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Six Sigma Strategy
As you go through the application of DMAIC you will have a goal to find the Root Causes to the
problem you are solving. Remember a vital component of problem solving is cause and effect
thinking or Y = f(X). To aid you in doing so you should create a visual model of this goal as a funnel -
a funnel that takes in a large number of the “trivial many contributors” and narrows them to the
“vital few contributors” by the time they leave the bottom.
At the top of the funnel you are faced with all possible causes - the “vital few” mixed in with the
“trivial many.” When you work an improvement effort or project you must start with this type of
thinking. You will use various tools and techniques to brainstorm possible causes of performance
problems and operational issues based on data from the process. In summary, you will be applying
an appropriate set of “analytical methods” and the “Y is a function of X” thinking to transform data
into the useful knowledge needed to find the solution to the problem.
It is a mathematical fact 80 percent of a problem is related to six or less causes; the X’s. In most
cases it is between one and three. The goal is to find the one to three Critical X’s from the many
potential causes when we start an improvement project. In a nutshell this is how the Six Sigma
methodology works.
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Breakthrough Strategy
Bad 6-Sigma
Breakthrough UCL
Old Standard
Performance
LCL
UCL
New Standard
LCL
Good
Time Juran’s Quality Handbook by Joseph Juran
By utilizing the DMAIC problem solving methodology to identify and optimize the vital few variables, we
will realize sustainable breakthrough performance as opposed to incremental improvements or, even
worse, temporary and non-sustainable improvement..
The image above shows how after applying the Six Sigma tools, variation stays within the specification
limits.
VOC, VOB, VOE
The
foundation of
Six Sigma
VOC is Customer Driven
requires focus
VOB is Profit Driven

on the voices
of the
Customer, the
Business and
the Employee
which VOE is Process Driven
provides:
 Awareness of the needs that are critical to the quality (CTQ) of our products and
services
 Identification of the gaps between “what is” and “what should be”
 Identification of the process defects that contribute to the “gap”
 Knowledge of which processes are “most broken”
 Enlightenment as to the unacceptable Costs of Poor Quality (COPQ)
Six Sigma places strong emphasis on the customer because they are the ones assessing our performance
and they respond by either continuing to purchase our products and services or … NOT!
So, while the customer is the primary concern, we must keep in mind the Voice of the Business – how do
we meet the business’s needs so we stay in business? And we must keep in mind the Voice of the
Employee - how do we meet employees’ needs such that they remain employed by our firm and remain
inspired and productive?
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Six Sigma Roles and Responsibilities

There are many roles and responsibilities for successful implementation of Six Sigma.
 Executive Leadership
 Champion/Process Owner
 Master Black Belt
 Black Belt
 Green Belt
 Subject Matter Experts
Just like a winning sports team various people who have specific positions or roles have defined
responsibilities. Six Sigma is similar - each person is trained to be able to understand and perform the
responsibilities of their role. The end result is a knowledgeable and well coordinated winning business
team.
The division of training and skill will be delivered across the organization in such a way as to provide a
specialist: it is based on an assistant structure much as you would find in the medical field between a
Doctor, 1st year Intern, Nurse, etc. The following pages discuss these roles in more detail.
In addition to the roles described herein, all other employees are expected to have essential Six Sigma
skills for process improvement and to provide assistance and support for the goals of Six Sigma and the
company.
Six Sigma has been designed to provide a structure with various skill levels and knowledge for all
members of the organization. Each group has well defined roles and responsibilities and communication
links. When all participants are actively applying Six Sigma principles the company operates and performs
at a higher level. This leads to increased profitability and greater employee and customer satisfaction.
Executive Leadership
Not all Six Sigma deployments are driven from the top by executive leadership. The data is clear,
however, that those deployments that are driven by executive management are much more successful
than those that are not.
 Makes decision to implement the Six Sigma initiative and develop accountability
method
 Sets meaningful goals and objectives for the corporation
 Sets performance expectations for the corporation
 Ensures continuous improvement in the process
 Eliminates barriers
The executive leadership owns the vision for the business, they provide sponsorship and set
expectations for the results from Six Sigma. They enable the organization to apply Six Sigma and then
monitor the progress against expectations.
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Champion/Process Owner
Champions identify and select the most meaningful projects to work on, they provide guidance to the
Six Sigma Black Belt and open doors for the Black belts to apply the process improvement
technologies.
 Own project selection, execution control, implementation and realization of gains
 Own Project selection
 Obtain needed project resources and eliminates roadblocks
 Participate in all project reviews
 Ask good questions…
 One to three hours per week commitment
Champions are responsible for functional business activities and to provide business deliverables to
either internal or external customers. They are in a position to be able to recognize problem areas of
the business, define improvement projects, assign projects to appropriate individuals, review projects
and support their completion. They are also responsible for a business roadmap and employee
training plan to achieve the goals and objectives of Six Sigma within their area of accountability.
Master Black Belt
MBB should be well versed with all aspects of Six Sigma, from technical applications to Project
Management. MBBs need to have the ability to influence change and motivate others.
 Provide advice and counsel to Executive Staff

 Provide training and support
MBB - In class training

- On site mentoring
 Develop sustainability for the business
 Facilitate cultural change
A Master Black Belt is a technical expert, a “go to” person for the Six Sigma methodology. Master
Black Belts mentor Black Belts and Green Belts through their projects and support Champions. In
addition to applying Six Sigma, Master Black Belts are capable of teaching others in the practices
and tools.
Being a Master Black Belt is a full time position.
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Black Belt
Black Belts are application experts and work projects within the business. They should be well
versed with The Six Sigma Technologies and have the ability to drive results.
 Project team leader

 Facilitates DMAIC teams in applying Six Sigma methods to
solve problems
Black Belts  Works cross-functionally
 Contributes to the accomplishment of organizational goals
 Provides technical support to improvement efforts
A Black Belt is a project team leader, working full time to solve problems under the direction of a
Champion, and with technical support from the Master Black Belt. Black Belts work on projects
that are relatively complex and require significant focus to resolve. Most Black Belts conduct an
average of 4 to 6 projects a year -- projects that usually have a high financial return for the
company.
Green Belt
Green Belts are practitioners of Six Sigma Methodology and typically work within their
functional areas or support larger Black Belt Projects.
• Well versed in the definition & measurement of critical processes

- Creating Process Control Systems
 Typically works project in existing functional area
Green Belts  Involved in identifying improvement opportunities
 Involved in continuous improvement efforts
- Applying basic tools and PDCA
 Team members on DMAIC teams
- Supporting projects with process knowledge & data
collection
Green Belts are capable of solving problems within their local span of control. Green Belts remain in
their current positions, but apply the concepts and principles of Six Sigma to their job environment.
Green Belts usually address less complex problems than Black Belts and perform at least two projects
per year. They may also be a part of a Black Belt’s team, helping to complete the Black Belt project.
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Subject Matter Experts

Provide specific support to Black Belts and Green Belts as needed based on expertise
May be team members on DMAIC teams
Support project work with their specific knowledge or skills
The Life of a Six Sigma Black Belt
Training as a Six Sigma Black Belt can be one of the most rewarding undertakings of your career
and one of the most difficult.
You can expect to experience:
 Hard work (becoming a Six Sigma Black Belt is not easy)

 Long hours of training
 Be a change agent for your organization
 Work effectively as a team leader
 Prepare and present reports on progress
 Receive mentoring from your Master Black Belt
 Perform mentoring for your team members
 ACHIEVE RESULTS!
You’re going places!
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To achieve Black Belt certification, Ford BB candidates must:
 Complete all Black Belt course work; refer to Six Sigma SharePoint site.
– DMAIC Black Belt Classroom Training
 Become familiar with tools and their application
 Practice using tools in classroom examples and exercises
 Discuss how tools will apply to actual projects
– On-line Project Management
– 2 on-line leadership courses e.g. Harvard ManageMentor® Plus
– Pass the written Black Belt Certification Exam (strongly suggest closing 1 project before taking
the exam)
– Each BB gets two (2) chances to take and pass the exam
 Show ability to use tools beyond the training environment to effect a measurable and significant
business impact in your organization
– Complete two (2) projects that positively impact Quality, Cost and/or Delivery for the Functional
Business Unit within two (2) Years from beginning of the training
 Submit a request to certify in the 6-Sigma Project Tracking System for MBB review along with the two
(2) identified BB projects
Organizational Behaviors
All players in the Six Sigma process must be willing to step up and act according to the Six Sigma
set of behaviors.
 Leadership by example: “walk the talk”
 Encourage and reward individual initiative
 Align incentive systems to support desired behaviors
 Eliminate functional barriers
 Embrace “systems” thinking
 Balance standardization with flexibility
Six Sigma is a system of improvement. It develops people skills and capability for the participants. It
consists of proven set of analytical tools, project-management techniques, reporting methods and
management methods combined to form a powerful problem-solving and business-improvement
methodology. It solves problems, resulting in increased revenue and profit, and business growth.
The strategy of Six Sigma is a data-driven, structured approach to managing processes, quantifying
problems, and removing waste by reducing variation and eliminating defects.
The tactics of Six Sigma are the use of process exploration and analysis tools to solve the equation
of Y = f(X) and to translate this into a controllable practical solution.
As a performance goal a Six Sigma process produces less than 3.4 defects per million
opportunities. As a business goal Six Sigma can achieve 40% or more improvement in the
profitability of a company. It is a philosophy that every process can be improved, at breakthrough
levels.
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At this point, you should be able to:
 Describe the objectives of Six Sigma
 Describe the relationship between variation and sigma
 Recognize some Six Sigma concepts
 Recognize the Six Sigma implementation model
 Describe the general roles and responsibilities in Six Sigma
You have now completed Define Phase – Understanding Six Sigma.
Notes
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Lean Six Sigma

Black Belt Training
Define Phase
Now we will continue in the Define Phase with the “Six Sigma Fundamentals”.
The output of the Define Phase is a well developed and articulated project. It has been correctly
stated that 50% of the success of a project is dependent on how well the effort has been defined.
There’s that Y = f(X) thinking again.
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Overview
The fundamentals of
this phase are Process Understa nding Six Sigm a
Maps, Voice of the
Customer, Cost of Poor
Quality and Process Six Sigm a Funda m enta ls
Metrics.
Process
Process M
Maaps
ps
We will examine the
meaning of each of Voice
Voice of
of the
the Custom
Customer
er
these and show you
how to apply them. Cost
Cost of
of Poor
Poor Q
Qua
uality
lity
Process
Process M
Metrics
etrics
Selecting Projects
Elem ents of W a ste
W ra p Up & Action Item s
What is a Process?
Why have a process focus?

– So we can understand how and why work gets done
– To characterize customer & supplier relationships
– To manage for maximum customer satisfaction while utilizing
minimum resources
– To see the process from start to finish as it is currently being
performed
– Defects: Blame the process, not the people
proc•ess (pros′es) n. – A repetitive and systematic

series of steps or activities where inputs are
modified to achieve a value-added output
What is a Process? Many people do or conduct a process everyday but do they really think of it as a
process? Our definition of a process is a repetitive and systematic series of steps or activities where inputs
are modified to achieve a value-added output.
Usually a successful process needs to be well defined and developed.
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Examples of Processes
We go through processes everyday. Below are some examples of processes. Can you
think of other processes within your daily environment?
 Injection molding  Recruiting staff
 Decanting solutions  Processing invoices
 Filling vial/bottles  Conducting research
 Crushing ore  Opening accounts
 Refining oil  Reconciling accounts
 Turning screws  Filling out a timesheet
 Building custom homes  Distributing mail
 Paving roads  Backing up files
 Changing a tire  Issuing purchase orders
Process Maps
Process Mapping, also called The purpose of a Process Map is to:
flowcharting, is a technique to – Identify the complexity of the process
visualize the tasks, activities and – Communicate the focus of problem solving
steps necessary to produce a product
or service. The preferred method for Process Maps are living documents and must be changed as the
process is changed:
describing a process is to identify it
– They represent what is currently happening not what you think is
with a generic name, show the happening
workflow with a Process Map and – They should be created by the people who are closest to the process
describe its purpose with an
operational description.
Process Map
Remember a process is a blending of
inputs to produce some desired
output. The intent of each task, activity
and step is to add value as perceived
t
ec
Start Step A Step B Step C Step D Finish

sp
In
by the customer, to the product or

service we are producing. You cannot
discover if this is the case
until you have adequately mapped the process.
There are many reasons for creating a Process Map:

- It helps all process members understand their part in the process and how their process fits into the
bigger picture.
- It describes how activities are performed and how the work effort flows, it is a visual way of standing
above the process and watching how work is done. In fact, Process Maps can be easily uploaded into
model and simulation software allowing you to simulate the process and visually see how it works.
- It can be used as an aid in training new people.
- It will show you where you can take measurements that will help you to run the process better.
- It will help you understand where problems occur and what some of the causes may be.
- It leverages other analytical tools by providing a source of data and inputs into these tools.
- It identifies many important characteristics you will need as you strive to make improvements.
The individual processes are linked together to see the total effort and flow for meeting business and
customer needs. In order to improve or to correctly manage a process, you must be able to describe it
in a way that can be easily understood. Process Mapping is the most important and powerful tool you
will use to improve the effectiveness and efficiency of a process.
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Process Map Symbols
Standard symbols for Process Mapping:

(available in Microsoft Office™, Visio™, iGrafx™ , SigmaFlow™ and other products)
A RECTANGLE indicates an A PARALLELOGRAM shows

activity. Statements within that there are data
the rectangle should begin
with a verb
A DIAMOND signifies a decision An ELLIPSE shows the start

point. Only two paths emerge from and end of the process
a decision point: No and Yes
An ARROW shows the A CIRCLE WITH A LETTER OR

connection and direction
1 NUMBER INSIDE symbolizes
the continuation of a
of flow
flowchart to another page
There may be several interpretations of some of the Process Mapping symbols; however, just
about everyone uses these primary symbols to document processes. As you become more
practiced you will find additional symbols useful, i.e. reports, data storage etc. For now we will start
with just these symbols.
High Level Process Map
At a minimum a
high level Process
Map must include;
start and stop
points, all process
steps, all decision
points and
directional flow.
Also be sure to
include Value
Categories such
as Value Added
(Customer Focus)
and Value
Enabling (External
Stakeholder
focus).
26
Process Map Example – Call Center
Cross Functional Process Map

When multiple departments or functional groups are involved in a complex process it is often useful
to use cross functional Process Maps.
– Draw in either vertical or horizontal Swim Lanes and label the functional
groups and draw the Process Map
These are best

used in Sending Wire Transfers
transactional
Department
Attach ACH ACH – Automated

Request form to Clearing House.
processes or Start transfer
Invoice
where the
process involves Fill out ACH
Vendor
Produce an No Receive
Invoice
enrollment payment End
several form
departments.
Accounting
Match against
Financial
Maintain database
The lines drawn Vendor
info in
Yes Input info into bank batch to balance ACH
web interface and daily cash transfers
horizontally FRS? batch
across the map

Accepts transactions,
Bank
represent transfer money and

provide batch total
different
departments in
Accounting
Review and
General
21.0
Process
the company transfer in
3.0
Journey Entry
Bank
Reconciliation
and are usually FRS
referred to as
Swim Lanes. By mapping in this manner one can see how the various departments are
interdependent in this process.
27
Process Map Exercise
Notes
Notes
28
Do you know your Customer?
Knowing your customer is more than just a handshake. It is

necessary to clearly understand their needs. In Six Sigma we
call this “understanding the CTQ’s” or Critical to Customer
Characteristics.
Voice Of the Customer Critical to Customer

Characteristics
An important element of Six Sigma is understanding your customer. This is called VOC or Voice of
the Customer. By doing this allows you to find all of the necessary information that is relevant
between your product/process and customer, better known as CTQ’s (Critical to Quality). The CTQ’s
are the customer requirements for satisfaction with your product or service.
Voice of the Customer
Do you feel confident
you know what your
customer wants?
There are four steps

that can help you in
understanding your
customer. These
steps focus on the
customer’s
perspective of
features, your
company’s integrity,
delivery mechanisms
and perceived value
versus cost.
29
What is a Customer?
Every process has a

Different types of customers dictate how we interact with them in
deliverable. The
the process. In order to identify customer and supplier
person or entity who
requirements we must first define who the customers are:
receives this
deliverable is a
customer. External
– Direct: those who receive the output of your services, they
There are two types of
generally are the source of your revenue
customers; External
and Internal. People – Indirect: those who do not receive or pay for the output of your
generally forget about services but have a vested interest in what you do (government
the Internal customer agencies)
and they are just as
important as the Internal
customers who are
- those within your organization
buying your product.
who receive the output of your
work
Value Chain
The relationship from one process to the next in an organization creates a

“Value Chain” of suppliers and receivers of process outputs.
Each process has a contribution and accountability to the next to satisfy the
external customer.
External customers needs and requirements are best met when all process
owners work cooperatively in the Value Chain.
Car ef u l –
ea ch m o ve
ha s m a n y
i m pa ct s!
The disconnect from Design and Production in some organizations is a good example. If Production
is not fed the proper information from Design how can Production properly build a product?
Every activity (process) must be linked to move from raw materials to a finished product on a store
shelf.
30
What is a CTQ?
Example: Making an
Online Purchase
Reliability – Correct
amount of money is
taken from account
Responsiveness –
How long to you wait
for product after the
Merchant receives
their money
Security – is your
sensitive banking
information stored in
secure place
Developing CTQ’s
The steps in developing
CTQ’s are identifying
the customer, capturing
the Voice of the
Customer and finally
validating the CTQ’s.
31
Cost of Poor Quality (COPQ)
Another important tool from • COPQ stands for Cost of Poor Quality
this phase is COPQ, Cost of
Poor Quality. COPQ • As a Six Sigma Belt one of your tasks will be to estimate COPQ for
represents the financial your process
opportunity of your team’s
improvement efforts. Those • Through your process exploration and project definition work you will
opportunities are tied to develop a refined estimate of the COPQ in your project
either hard or soft savings.
• This project COPQ represents the financial opportunity of your
COPQ, is a symptom team’s improvement effort (VOB)
measured in loss of profit
(financial quantification) that • Calculating COPQ is iterative and will change as you learn more
results from errors (defects) about the process
and other inefficiencies in our
No, n ot t hat k i n d
processes. This is what we
o f co p queue!
are seeking to eliminate!
You will use the concept of COPQ to quantify the benefits of an improvement effort and also to
determine where you might want to investigate improvement opportunities.
The Essence of COPQ

There are four
elements that make up
COPQ; External Costs,
Internal Costs,
Prevention Costs and
Appraisal Costs.
Internal Costs are
opportunities of error
found in a process that
is within your
organization. Whereas,
External Costs are
costs associated to the
finish product
associated with the
internal and external
customer.
Prevention Costs are typically cost associated to product quality, this is viewed as an investment
companies make to ensure product quality. The final element is Appraisal costs; these are tied to
product inspection and auditing.
This idea was of COPQ was defined by Joseph Juran and is a great point of reference to gain a further
understanding.
Over time with Six Sigma, COPQ has migrated towards the reduction of waste. Waste is a better term
because it includes poor quality and all other costs that are not integral to the product or service your
company provides. Waste does not add value in the eyes of customers, employees or investors.
32
COPQ - Categories
COPQ - Iceberg
Inspection
Generally speaking Warranty Recode
Rework
COPQ can be Rejects
classified as tangible Visible Costs
(easy to see) and (Hard Costs)
intangible (hard to
see). Visually you can
think of COPQ as an Engineering change orders Lost sales
iceberg. Most of the
iceberg is below the Time value of money (less obvious) Late delivery
Expediting costs
water where you
cannot see it. More set-ups
Excess inventory
Similarly the tangible Working Capital allocations

Long cycle times
quality costs are costs
the organization is Excessive Material
Orders/Planning
rather conscious of, Hidden Costs Lost Customer Loyalty
may be measuring (Soft Costs)
already or could
easily be measured. The COPQ metric is reported as a percent of sales revenue. For example tangible
costs like inspection, rework, warranty, etc. can cost an organization in the range of 4 to 10 % of every
sales dollar it receives. If a company makes a billion dollars in revenue this means there are tangible
wastes between 40 and 100 million dollars.
Even worse are the intangible Costs of Poor Quality. These are typically 20 to 35% of sales. If you
average the intangible and tangible costs together it is not uncommon for a company to be spending
25% of their revenue on COPQ or waste.
33
COPQ and Lean
Waste: that which does not add, subtract or otherwise modify the
output in a way that is perceived by the customer to add value.
• In some cases waste may be

necessary but should be Lean Enterprise
recognized and explored: Seven Elements of Waste*
– Inspection, Correction, Waiting u Correction
in suspense u Processing
– Decision diamonds, by u Conveyance
definition, are non-value added u Motion
• Often waste can provide u Waiting
opportunities for additional u Overproduction
defects to occur. u Inventory
• We will discuss Lean in more *Womack, J. P., & Jones, D. T. (1996). Lean
Thinking. New York, NY: Simon & Schuster
detail later in the course.
Implementing Lean fundamentals can also help identify areas of COPQ. Lean will be discussed later.
COPQ and Lean
Here are examples are COPQ’s Hard and Soft Savings.
34
COPQ Exercise
Notes
Notes
35
The Basic Six Sigma Metrics
In any process improvement endeavor, the ultimate objective

is to make the process:
• Better: DPU, DPMO, YRT (there are others, but they derive from
these basic three)
• Faster: Cycle Time
• Cheaper: COPQ
If you make the process better by eliminating defects you will make it
faster.
If you choose to make the process faster, you will have to eliminate
defects to be as fast as you can be.
If you make the process better or faster, you will necessarily make it
cheaper.
The metrics for all Six Sigma projects fall into

one of these three categories.
The previous slides have been discussing process management and the concepts behind a process
perspective. Now we begin to discuss process improvement and the metrics used.
Some of these metrics are:
DPU: Defects Per Unit produced.
DPMO: Defects Per Million Opportunities, assuming there is more than one opportunity to fail
in a given unit of output.
YRT: Rolled Throughput Yield, the probability that any unit will go through a process defect-free.
Cycle Time Defined
Think of Cycle Time in terms of your product or transaction in

the eyes of the customer of the process:
– It is the time required for the product or transaction to go through the
entire process, from beginning to end
– It is not simply the “touch time” of the value-added portion of the process
What is the cycle time of the process you mapped?

Is there any variation in the cycle time? Why?
Cycle time includes any wait or queue time for either people or products.
36
Defects Per Unit (DPU)

Six Sigma methods quantify individual defects and not
DPU or Defects per Unit
just defectives
quantifies individual
defects on a unit and not – Defects account for all errors on a unit
just defective units. A • A unit may have multiple defects
returned unit or • An incorrect invoice may have the wrong amount due and the
transaction can be wrong due date
defective and have more – Defectives simply classifies the unit bad
than one defect. • Doesn’t matter how many defects there are
Defect: A physical • The invoice is wrong, causes are unknown
count of all errors on a – A Unit:
unit, regardless of the
• Is the measure of volume of output from your area.
disposition of the unit.
• Is observable and countable. It has a discrete start and stop
EXAMPLES: An error in a point.
single Online transaction • It is an individual measurement and not an average of
has (1 Unit) has a typed measurements.
wrong card number and an Two Defects One Defective
internet failure. In this
case one online transaction
had 2 defects (DPU=2).
A Mobile Computer (1 Unit) that has 1 broken video screen, 2 broken keyboard keys and 1 dead
battery, has a total of 4 defects. (DPU=4)
Is a process that produces 1 DPU better or worse than a process that generates 4 DPU? If you
assume equal weight on the defects, obviously a process that generates 1 DPU is better; however,
cost and severity should be considered. The only way you can model or predict a process is to count
all the defects.
Final Yield (YF )
Traditional
metrics when Final Yield (YF) is the traditional quality metric for yield
chosen poorly – Unfortunately, it does not account for any necessary rework
can lead the
team in a Total Units Passed
direction that is YF = Total Units Tested
not consistent
with the focus Units in = 100 Units in = 100 Units in = 100 Units Passed = 100
Units Out = 100 Units Out = 100 Units Out = 100 Units Tested = 100
of the business. Process B
Process A Process C Final Product
One of the (Grips*) (Shafts*) (Club Heads*) (Set of Irons*)
metrics we
must be
concerned about
would be YF or
FINAL YIELD.
It is very possible
Defects Repaired Defects Repaired Defects Repaired
to have 100%
40 30 20
YF and spend YF = 100 %
tremendous
amounts in *None of the data used herein is associated with the products shown herein. Pictures are no more than illustration
to make a point to teach the concept.
excess repairs
and rework.
37

Rolled Throughput Yield (YRT)
Rolled Throughput Yield (YRT) is a more appropriate metric

for problem solving
– It accounts for losses due to rework steps
YRT = YT1 * YT2 * YT3
Units in = 100 Units in = 100 Units in = 100 Units Passed = 100
Units W/O Rework = 60 Units W/O Rework = 70 Units W/O Rework = 80 Units Tested = 100
YT1 = 0.6 YT2 = 0.7 YT3 = 0.8
Process A Process B Process C Final Product
(Grips*) (Shafts*) (Club Heads*) (Set of Irons*)
Defects Repaired Defects Repaired Defects Repaired

40 30 20 YRT = 33.6 %
*None of the data used herein is associated with the products shown herein. Pictures are no more than illustration
Instead of relying on YF – Final Yield, a more efficient metric to use is Rolled Throughput Yield (YRT ).
Rolled Throughput Yield has a direct correlation (relationship) to Cost of Poor Quality.
In the few organizations where data is readily available, the YRT can be calculated using actual defect
data. The data provided by this calculation would be a Bi-Nominal Distribution since the lowest yield
possible would be zero.
As depicted here, YRT is the multiplied Throughput yield of each subsequent operation throughout a
process (YT1 * YT2 * YT3…).
YRT Estimate
• In many organizations the long term data required
Sadly, in most companies to calculate YRT is not available, we can however
there is not enough data to estimate YRT using a known DPU as long as
calculate YRT in the long term.
certain conditions are met.
Installing data collection
practices required to provide • The Poisson distribution generally holds true for
such data would not be cost the random distribution of defects in a unit of
effective. In those instances, product and is the basis for the estimation.
it is necessary to utilize a – The best estimate of the proportion of units
prediction of YRT in the form
containing no defects, or Y RT is:
of e-dup (e to the negative dpu).
W hen using the e-dpu equation YRT
Y RT == ee-dpu
-dpu
to calculate the probability of a The mathematical constant e is the base of the natural logarithm.
product or service moving e ≈ 2.71828 18284 59045 23536 02874 7135
through the entire process
without a defect, there are several things that must be held for consideration. While this would seem to
be a constraint, it is appropriate to note that if a process has in excess of 10% defects, there is little
need to concern yourself with the YRT .
In such extreme cases, it would be much more prudent to correct the problem at hand before worrying
38
Deriving YRT from DPU
The Binomial distribution is the true model for defect data, but the
Poisson is the convenient model for defect data. The Poisson does a
good job of predicting when the defect rates are low.
Probability Yield Yield %
% Over
Poisson VS Binomial (r=0,n=1) Probability
of
Yield Yield Over
120%
ofaadefect
defect (Binomial)
(Binomial) (Poisson)
(Poisson) Estimated
Estimated
0.0
0.0 100%
100% 100%
100% 0%
0%
100%
Yield (Binomial) 0.1
0.1 90%
90% 90%
90% 0%
0%
0.2
0.2 80%
80% 82%
82% 2%
2%
80% Yield (Poisson)
Yield (YRT)
0.3
0.3 70%
70% 74%
74% 4%
4%
60%
0.4
0.4 60%
60% 67%
67% 7%
7%
0.5
0.5 50%
50% 61%
61% 11%
11%
40% 0.6
0.6 40%
40% 55%
55% 15%
15%
0.7
0.7 30%
30% 50%
50% 20%
20%
20% 0.8
0.8 20%
20% 45%
45% 25%
25%
0.9
0.9 10%
10% 41%
41% 31%
31%
0% 1.0
1.0 0%
0% 37%
37% 37%
37%
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0
Probability of a defect
Binomial Poisson
n = number of units For low defect
r = number of predicted rates (p < 0.1),
defects the Poisson
p = probability of a defect approximates
occurrence the Binomial
fairly well.
q=1-p
Our goal is to predict yield. For process improvement, the “yield” of interest is the ability of a process
to produce zero defects (r=0). Question: W hat happens to the Poisson equation when r=0?
Deriving YRT from DPU - Modeling

Given a
Unit
probability that Ba sic Q uestion: W hat is the likelihood of
any opportunity Opportunity producing a unit with zero defects?
is a defect = # • For the unit shown above the following
defects / (# units data was gathered:
x # opportunities – 60 defects observed
– 60 units processed RTY for DPU = 1
per unit): 0.368
• W hat is the DPU? 0.364
To what value 0.36
Yield
is the P(0) 0.356
converging? • W hat is probability that any given

0.352
0.348
opportunity will be a defect?
Note: Ultimately, 10 100 1000
Chances Per Unit
10000 100000 1000000
this means that Opportunities P(defect) P(no

Opportunities P(defect) P(no defect)
defect) RTY (Prob
RTY (Prob defect
defectfree
freeunit)
unit)
you need the • W hat is the probability that any given 10 0.1 0.9 0.34867844
opportunity will N OT be a defect is: 10
100 0.1
0.01 0.9
0.99 0.34867844
0.366032341
ability to track 100
1000 0.01
0.001 0.99
0.999 0.366032341
0.367695425
1000 0.001 0.999 0.367695425
all the individual 10000
10000
100000
0.0001
0.0001
0.00001
0.9999
0.9999
0.99999
0.367861046
0.367861046
0.367877602
defects which • The probability that all 10 opportunities 100000
1000000 0.00001
0.000001 0.99999
0.999999 0.367877602
0.367879257
1000000 0.000001 0.999999 0.367879257
on single unit will be defect-free is:
occur per unit If we extend the concept to an infinite number
via your data of opportunities, all at a DPU of 1.0, we will
collection system. approach the value of 0.368.
Probability that an opportunity is a defect = 0.1

Probability that an opportunity is not a defect = 1 - 0.1 = 0.9
Probability that all 10 opportunities are defect-free = 0.910 = 0.34867844
39
YRT Prediction — Poisson Model
• Use the Poison Model to estimate the probability of a discrete event

(good/bad) when sampling from a relatively large population, (dpu)r e – dpu
n > 16, & p < 0.1. YRT =
r!
• W hen r=0, we compute the probability of finding zero defects per unit
(called “Rolled Throughput Yield” or YRT ). r p[r]
• The table to the right shows the proportion of product which will have 0 0.3679
– 0 defects (r=0) 1 0.3679
– 1 defect (r=1) When DPU=1
– 2 defects (r=2), etc… 2 0.1839
• W hen, on average, we have a process, with 1 defect per unit, then we say
there is a 36.79% chance of finding a unit with zero defects. There is only 3 0.0613
a 1.53% chance of finding a unit with 4 defects. 4 0.0153
• W hen r=1, this equation simplifies to: (dpu)*e-dpu 5 0.0031
• To predict the % of units with zero defect (i.e., YRT ):
6 0.0005
– count the number of defects found
7 0.0001
– count the number of units produced
– compute the dpu and enter it in the dpu equation: 8 0.0000
The point of this slide is to demonstrate the mathematical model used to predict the probability of an
outcome of interest. It has little practical purpose other than to acquaint the Six Sigma Black Belt with
the math behind the tool they are learning and let them understand that there is a logical basis for the
equation.
Six Sigma Metrics – Calculating DPU
The DPU for a given operation can be calculated by dividing the number of defects found
in the operation by the number of units entering the operational step.
- 100 parts built
- 2 defects identified and corrected
- dpu = 0.02
- So YT for this step would be e-.02 = 0.980199, or 98.02%.
If the process had only 5 process steps with the same yield, the process YRT would be:
0.98 * 0.98 * 0.98 * 0.98 * 0.98 = 0.904 or 90.4%. Since our metric of primary concern is
the COPQ of this process, we can say that in less than 10% of the time we will be
spending dollars in excess of the pre-determined standard or value added amount to
which this process is entitled.
YT1=0.98 YT2=0.98 YT3=0.98 YT4 =0.98 YT5=0.98 Y
YRT
RTT =0.904
RT
R ==
=0.904
00..990044
dpu1 = .02 dpu2 = .02 dpu3 = .02 dpu4 = .02 dpu5 = .02 dpu
dd
dpu
p
puuTOT
TTO = .1
OTT = ...1
TOT 11
Note:Note: RT’s must

YRT’sYmust be multiplied
be multiplied acrossa aprocess,
across
process, DPU’s are added across a process.
DPU’s are added across a process.
W hen the number of steps in a process continually increase, we then continue to multiply the yield from
each step to find the overall process yield. For the sake of simplicity let’s say we are calculating the YRT
for a process with 8 steps. Each step in our process has a Throughput Yield (YT ) of .98. Again, there will
be a direct correlation between the YRT and the dollars spent to correct errors in our process.
40
Focusing our Effort – YF vs. YRT
Assume we are creating two products in our organization

that use similar processes.
Product A*
YF = 80%
Product B*
YF = 80%
How do you know what to work on?
*None of the data used herein is associated with the products shown herein. Pictures are no more than illustration
If we chose only to examine the YF in our decision making process, it would be difficult to determine the
process and product on which our resources should be focused.
As you have seen, there are many factors behind the final number for YF. That’s where we need to look
for process improvements.
Focusing our Effort – YF vs. YRT
Answer the Slide’s Let’s look at the DPU of each product assuming equal opportunities
questions. and margin…
Now we have a
better idea of: Product A*
1) “W hat does a Product B*

200 defects / 100 units = 2 dpu
defect cost?”
100 defects / 100 units = 1 dpu
2) “W hat product Now, can you tell which to work on?
should get the
“the product with the highest DPU?” …think again!
focus?”
How much more time and/or raw material are required?
How much extra floor space do we need?
How much extra staff or hours are required to perform the rework?
How many extra shipments are we paying for from our suppliers?
How much testing have we built in to capture our defects?
*None of the data used herein is associated with the products shown herein. Pictures are no more than illustration to
make a point to teach the concept.
41
At this point, you should be able to:
• Describe what is meant by “Process Focus”
• Generate a Process Map
• Describe the importance of VOC, VOB and VOE, and CTQ’s
• Explain COPQ
• Describe the Basic Six Sigma metrics
• Explain the difference between YF and YRT
• Explain how to calculate “Defects per Unit” (DPU)
You have now completed Define Phase – Six Sigma Fundamentals.
Notes
42
Lean Six Sigma

Black Belt Training
Define Phase
Selecting Projects
Now we will continue in the Define Phase with the “Selecting Projects”.
43
Selecting Projects
Overview
The fundamentals of this phase Understa nding Six Sigm a
are Selecting Projects, Refining
and Defining and Financial
Evaluation. Six Sigm a Funda m enta ls
The output of the Define Phase

Selecting Projects
is a well developed and
articulated project. It has been
correctly stated that 50% of the Selecting
Selecting Projects
Projects
success of a project is
dependent on how well the Refining
Refining &
& Defining
Defining
effort has been defined.
Financial
Financial Evaluation
Evaluation
Approaches to Project Selection
Here are three approaches

There are three basic approaches to Project Selection…
for identifying projects. Do
you know what the best
approach is?
The most popular process

“Blatantly Obvious” “Brainstorming Approach”
for generating and selecting
Things that clearly occur on a Identifies projects based on projects is by holding
repetitive basis and present individual’s “experience” and “tribal “brainstorming” sessions. In
problems in delivering our knowledge” of areas that may be
service(s) or product(s). creating problems in delivering our brainstorming sessions a
service(s) / product(s) and hopefully
tie to bottom-line business impact.
group of people get together,
sometimes after polling
process owners for what
“Structured Approach”
Identifies projects based on organizational data providing a direct plan to
“blatantly obvious” problems
effect core business metrics that have bottom-line impact. are occurring, and as a team
try to identify and refine a list
All three ways work…the Structured Approach is the most desirable. of problems that MAY be
causing issues in the
organization. Furthermore in an organization that does not have an intelligent problem-solving
methodology in place, such as Six Sigma, Lean or even TQM, what follows the project selection
process brainstorm is ANOTHER brainstorming session focused on coming up with ideas on how to
SOLVE these problems.
Although brainstorming itself can be very structured it falls far short of being a systematic means of
identifying projects that will reduce Cost of Poor Quality throughout the organization. Why…for several
reasons. One, it does not ensure we are dealing with the most important high-impact problems but
rather what happens to be the recent fire fight initiatives. Two, usually brainstorming does not utilize a
data based approach, it relies on tribal knowledge, experience and what people THINK is happening.
As we know what people THINK is happening and what is ACTUALLY happening can be two very
different things.
44
Selecting Projects
Project Selection – Core Components
Business Case – The Business Case is a high level articulation of

the area of concern. This case answers two primary questions;
one, what is the business motivation for considering the project
and two, what is our general area of focus for the improvement
effort?
Project Charter – The Project Charter is a more detailed version of

the Business Case. This document further focuses the
improvement effort. It can be characterized by two primary
sections; one, basic project information and two, simple project
performance metrics.
Benefits Analysis – The Benefits Analysis is a comprehensive

financial evaluation of the project. This analysis is concerned with
the detail of the benefits in regard to cost and revenue impact we
are expecting to realize as a result of the project.
With every project there must be a minimum of 3 deliverables:

Business Case
Project Charter
Benefits Analysis
Project Selection - Governance
45
Selecting Projects
A Structured Approach – A Starting Point
These are some

examples of
Business Metrics or
Key Performance
Indicators.
What metric should
you focus on…it
depends? What is
the project focus?
What are your
organizations
strategic goals?
Are Cost of Sales
preventing growth?
Are customer
complaints
resulting in lost
earnings? Are
excess cycle times
and yield issues eroding market share? Is the fastest growing division of the business the
refurbishing department?
It depends because the motivation for organizations vary so much and all projects should be directly
aligned with the organizations objectives. Answer the question: What metrics are my department not
meeting? What is causing us pain?
A Structured Approach - Snapshot
Once a metric point

has been determined
another important
question needs to be
asked - What is my
metric a function of?
In other words what
are all of the things
that affect this metric?
We utilize the Tree

Diagram to facilitate
the process of
breaking down the
metric of interest.
When creating the tree diagram you will eventually run into activities which are made up of
processes. This is where projects will be focused because this is where defects, errors and
waste occur.
46
Selecting Projects
Business Case Components – Level 1
Be sure to start with higher level metrics, whether they are measured at the Corporate Level,
Division Level or Department Level. Projects should track to the Metrics of interest within a given
area. Primary Business Measures or Key Performance Indicators (KPI’s) serve as indicators of the
success of a critical objective.
Business Case Components – Business Measures
Post business measures (product/service) of the

primary business measure are lower level metrics
and must focus on the end product to avoid internal
optimization at expense of total optimization.
Business Business
Processes Activities
Measure Measure
Primary Business
Measure
Business Business
Measure Measure
Post business measures, be they a product or a service, are lower level metrics and must focus
on the end product.
47
Selecting Projects
Business Case Components - Processes
Business Business
Measure Measure
Primary Business
Measure
Business Business
Measure Measure
Y = f (x1, x2, x3…xn )

First Call Resolution = f (Calls, Operators, Resolutions…xn )
Black Box Testing = f (Specifications, Simulation, Engineering…xn)
Business measures are a function of processes. These processes are usually created or enforced
by direct supervision of functional managers. Processes are usually made up of a series of activities
or automated steps.
Business Case Components - Activities
Business Business
Measure Measure
Primary Business
Measure
Business Business
Measure Measure
Y = f (x1, x2, x3…xn )

Resolutions = f (New Customers, Existing Customers, Defective Products…xn )
Simulation = f (Design, Data, modeling…xn )
The Activities represent the final stage of the matrix where multiple steps result in the delivery of
some output for the customer. These deliverables are set by the business and customer and
are captured within the Voice of the Customer, Voice of the Business or Voice of the Employee.
These activities are the X’s that determine the performance of the Y which is where the actual
breakthrough projects should be focused.
48
Selecting Projects
What is a Business Case?
The Business Case

is created to ensure The Business Case communicates the need for the
the strategic need project in terms of meeting business objectives.
for your project. It
is the first step in
project description The components are:
development. – Output unit (product/service) for external customer
– Primary business measure of output unit for project
– Baseline performance of primary business measure
– Gap in baseline performance of primary business measure from
business objective
Let ’s get d o wn
to bu si n ess!
Business Case Example
During FY 2005, the First Time Call Resolution

Efficiency for New Customer Hardware Setup Here is an example of an
was 89% . Business Case. This defines
the problem and provides
evidence of the problem.
This represents a gap of 8% from the industry
standard of 97% that amounts to a potential of
$2,000,000US of annualized cost impact.
As you review this statement remember the following format of what needs to be in a Business
Case: WHAT is wrong, WHERE and WHEN is it occurring, what is the BASELINE magnitude at
which it is occurring and what is it COSTING me?
You must take caution to avoid under-writing a Business Case. Your natural tendency is to write too
simplistically because you are already familiar with the problem. You must remember if you are to
enlist support and resources to solve your problem others will have to understand the context and
the significance in order to support you.
The Business Case cannot include any speculation about the cause of the problem or what actions
will be taken to solve the problem. It is important that you do not attempt to solve the problem or bias
the solution at this stage. The data and the Six Sigma methodology will find the true causes and
solutions to the problem.
The next step is getting project approval.
49
Selecting Projects
The Business Case Template
Fill in the Blanks for Your Project:
During ___________________________________ , the ____________________ for

(Period of time for baseline performance) (Primary business measure)
________________________ was _________________ .

(A key business process) (Baseline performance)
This gap of ____________________________

(Business objective target vs. baseline)
from ___________________ represents ____________________ of cost impact.

(Business objective) (Cost impact of gap)
You need to make sure your own Business Case captures the units of pain, the business measures, the
performance and the gaps. If this template does not seem to be clicking use your own or just free form
your Business Case ensuring it is well articulated and quantified.
Business Case Exercise
Exercise objective: To understand how to create a “strong”

Business Case.
1. Complete the Business Case template below to the best of

your ability.
During ________________________ , the ____________________ for

(Period of time for baseline performance) (Primary business measure)
_______________________ was ___________________ .

(A key business process) (Baseline performance)
This gap of __________________________

(Business objective target vs. baseline)
from __________________ represents ____________ of cost impact.

(Business objective) (Cost impact of gap)
Using the Excel file ‘Define Templates.xls’, Business Case, perform this exercise.
50
Selecting Projects
What is a Project Charter?

The Charter expands on the Business Case, it clarifies the projects focus and measures of
project performance and is completed by the Six Sigma Belt.
Components:
• The Problem
• Project Scope
• Project Metrics
• Primary & Secondary
• Graphical Display of Project Metrics
• Primary & Secondary
• Standard project information
• Project, Belt & Process Owner
names
• Start date & desired End date
• Division or Business Unit
• Supporting Master Black Belt
(Mentor)
• Team Members
The Project Charter is an important document – it is the initial communication of the project. The first
phases of the Six Sigma methodology are Define and Measure. These are known as
“Characterization” phases that focus primarily on understanding and measuring the problem at hand.
Therefore some of the information in the Project Charter, such as primary and secondary metrics, can
change several times. By the time the Measure Phase is wrapping up the Project Charter should be in
its final form meaning defects and the metrics for measuring them are clear and agreed upon.
As you can see some of the information in the Project Charter is self explanatory, especially the first
section. We are going to focus on establishing the Problem Statement and determining Objective
Statement, scope and the primary and secondary metrics.
Project Charter - Definitions
• Problem Statement - Articulates the pain of the defect or error in the

process.
• Objective Statement – States how much of an improvement is desired

from the project.
• Scope – Articulates the boundaries of the project.
• Primary Metric – The actual measure of the defect or error in the process.
• Secondary Metric(s) – Measures of potential consequences (+ / -) as a

result of changes in the process.
• Charts – Graphical displays of the Primary and Secondary Metrics over a

period of time.
51
Selecting Projects
Project Charter - Problem Statement
Migrate the Business Case into a Problem Statement…
First the Business

Case will serve as the
Problem Statement, as
the Belt learns more
about the process and
the defects that are
occurring.
Project Charter – Objective & Scope
Consider the following for

constructing your Objective &
Scope:
What represents a significant

improvement?
 X amount of an increase in
yield
 X amount of defect reduction
 Use Framing Tools to establish
the initial scope
A project’s main objective is to solve

a problem! The area highlighted is
for articulating how much of a
reduction or improvement will yield a
significant impact to the process
and business.
This is the starting point creating your

project’s Objective Statement.
52
Selecting Projects
Pareto Analysis
Assisting you in determining what inputs are having the greatest impact on your process is the
Pareto Analysis approach.
The 80:20 Rule Examples
Here are some

examples of the 80:20
Rule. Can you think of
any other examples?
53
Selecting Projects
Pareto Chart - Tool

Multi level Pareto Charts are used in a drill down fashion to get to Root Cause of the tallest bar.
Level 1
Level 2
Level 3
The Pareto Charts are often referred to as levels. For instance the first graph is called the first level,
the next the second level and so on. Start high and drill down. Let’s look at how we interpret this and
what it means.
Let’s look at the following example.
By drilling down from the first level Level 2

we see that Department J makes
up approximately 60% of the scrap
and part Z101 makes up 80% of
Dept. J’s scrap.
See how we are creating focus and

establishing a line of sight?
You many be eager to jump into

trying to fix the problem once you
have identified it, BE CAREFUL.
Level 3
This is what causes rework and
defects in the first place.
Follow the methodology, be patient

and you will eventually be led to a
solution.
54
Selecting Projects
Pareto Chart - Example
 Open MINITABTM and select • Use the “Call Center.mtw”

Pareto Analysis as shown above worksheet to create a Pareto Chart
What would you do with this Pareto?
When your
Pareto shows up
like this your focus
is on the 80-20
which is across
the “incorrectly
routed and
dropped calls”
totaling to about
80%.
55
Selecting Projects
Pareto Chart – Example (cont.)

Let’s look at the problem a little differently…
- Using a higher level scope for the first Pareto may help in providing focus.
- Create another Pareto as shown below.
This gives a deeper picture of which product category contributes the highest defect count.
Which cards create the highest Defect Rates?
Now you are beginning to see what needs work to improve the performance of your project. Notice
the blue line shows the Cumulative Percentage of all defects.
56
Selecting Projects
Pareto Chart – Example (cont.)
Remember to keep focused on finding the biggest bang for the dollar.
Now what? We have got ourselves another “Pareto”…
Essentially this tells us there is clear direction to the major defects within the Platinum Business
Accounts.
57
Selecting Projects
Project Charter – Primary Metric
Moving on to the next Establishing the Primary Metric:

- Quantified measure of the defect - Serves as the indicator of project success
element of the Project - Links to the KPI or Primary Business measure - Only one Primary Metric per project
Charter…, Using the
Excel file ‘Define
The Primary
Templates.xls’,
Metric is a very
Project Charter, important
perform the following measure in the
exercise: Six Sigma project;
this metric is a
Since we will be quantified
measure of the
narrowing in on the
defect or primary
defect through the issue of the
Measure Phase it is project.
common for the
Primary Metric to
change several times
while we struggle to
understand what is
happening in our
process of interest.
The Primary Metric also serves as the gauge for when we can claim victory with the project.
Project Charter – Secondary Metrics

Consider a project
focused on improving Establishing Secondary Metric(s):
duration of call times - Measures positive & negative consequences as a result of changes in the process
- Can have multiple Secondary Metrics
(cycle time) in a call
center. If we realize a Secondary Metrics
reduction in call time are put in place to
measure potential
you would want to changes that may
know if anything else occur as a result of
was effected. making changes to
our Primary Metric.
Think about it…did They will measure
overtime increase / ancillary changes in
reduce, did labor the process, both
increase / reduce, what positive and
negative.
happened to customer
satisfaction ratings?
These are all things
that should be
measured in order to
accurately capture the
true effect of the
improvement.
58
Selecting Projects
Project Charter – Metric Charts

The Project
Charter
template
includes the
graphing
capabilities
shown here. It
is acceptable to
not use this
template but in
any case ensure
you are
regularly
measuring the
critical metrics.
Project Charter Exercise
Using the Excel

file ‘Define
Templates.xls’,
Project Charter,
perform this
exercise.
59
Selecting Projects
What is the Financial Evaluation?
The Financial Evaluation establishes the value of the project.
The components are:

– Impact OK, l et ’s ad d i t up!
• Sustainable
• One-off
– Allocations
• Cost Codes / Accounting System
– Forecast
• Cash flow
• Realization schedule
Typically a financial representative is responsible for evaluating the financial

impact of the project. The Belt works in coordination to facilitate the proper
information.
Standard financial principles should be followed at the beginning and end of the project to provide a
true measure of the improvement’s effect on the organization.
A financial representative of the firm should establish guidelines on how savings will be calculated
throughout the Lean Six Sigma deployment.
Benefits Capture - Calculation “Template”
Whatever
your There are two
organization’s I types of Impact:
M Sustainable Impact “One-Off” Impact
protocol may P
A One Off &
C
be these T
Sustainable
aspects
should be Cost Codes
accounted for C
allocate the impact
within any O
S
to the appropriate
T Reduced Increased Implemen-
Costs Capital
improvement C
Costs Revenue tation
area in the
O
project. D
E
“Books”
S
Forecasts allow for

F
O
Realization Schedule proper
R
(Cash Flow)
E
C
management of
A
S
T
projects and
By Period
(i.e. Q1,Q2,Q3,Q4) resources
60
Selecting Projects
Benefits Capture - Basic Guidelines
When calculating project benefits you should follow these steps.
Benefits Capture - Categorization

Here is an example of how to categorize your project’s impact.
A
• Projects directly impacting the Income Statement or Cash Flow
Statement.
B
• Projects impact the Balance Sheet (working capital).
C• Projects avoid expense or investment due to known or expected

events in the future (cost avoidance).
D• Projects are risk management, insurance, Safety, Health,

Environment and Community related projects which prevent or
reduce severity of unpredictable events.
Yo u d o n ot wa nt to t ak e t hi s o n e ho m e!
61
Selecting Projects
Benefits Calculation Involvement & Responsibility
Project Selection D-M-A-I-C Implementation 6 Month Audit
Financial Financial Financial Financial

Representative Representative Representative Representative
Champion Black Belt Champion Process Owner

& &
Process Owner Process Owner
It is highly recommended that you follow the involvement governance shown here.
Benefits Capture - Summary
• Performance tracking for Six Sigma Projects should use the

same discipline that would be used for tracking any other
high-profile projects.
• The A-B-C-D categories can be used to illustrate the impact of

your project or a “portfolio” of projects.
• Establish the Governance Grid for Responsibility &

Involvement.
T hi s i s t he
o n e we wa nt !
Just some recommendations to consider when running your projects or program.
62
Selecting Projects
Benefits Calculation Template
The Benefits
Calculation
Template
facilitates and
aligns with the
aspects
discussed for
Project
Accounting.
The Excel file

‘Define
Templates.xls’,
BENEFITS
CALCULATION
TEMPLATE.
63
Selecting Projects
You have now completed Define Phase – Selecting Projects.
Notes
64
Lean Six Sigma

Black Belt Training
Define Phase
Elements of Waste
Now we will continue in the Define Phase with “Elements of Waste”.
65
Elements of Waste
Overview
The fundamentals of
this phase are the 7 Understa nding Six Sigm a
components of waste
and 5S.
Six Sigm a Funda m enta ls
We will examine the
meaning of each of
these and show you
how to apply them. Selecting Projects
77 Com
Components
ponents of
of W
W aaste
ste
55S
S
Definition of Lean
“Lean Enterprise is based on the premise that anywhere

work is being done, waste is being generated.
The Lean Enterprise seeks to organize its processes to

the optimum level, through the continual focus on the
identification and elimination of waste.”
-- Barbara Wheat
Lean Six Sigma Master Black Belt
66
Elements of Waste
Lean – History
1885 1913 1955 - 1990 1993 -

Craft Production Mass Production Toyota Production Lean Enterprise
- Machine then harden - Part inter-changeability System - "Lean" applied to all
- Fit on assembly - Moving production line - Worker as problem functions in enterprise
- Customization - Production engineering solver value stream
- Highly skilled workforce - "Workers don't like to - Worker as process - Optimization of value
- Low production rates think" owner enabled by: delivered to all
- High Cost - Unskilled labor -- Training stakeholders and
- High production rates -- Upstream quality enterprises in value chain
- Low cost -- Minimal inventory - Low cost
- Persistent quality -- Just-in-time - Improving productivity
problems - Eliminate waste - High quality product
- Inflexible models - Responsive to change - Greater value for
- Low cost stakeholders
- Improving productivity
- High quality product
Lean Manufacturing has been going on for a very long time, however the phrase is credited to
James Womac in 1990. The small list of accomplishments noted above are primarily focused on
higher volume manufacturing.
Lean Six Sigma

The essence of Lean is
to concentrate effort on Lean Six Sigma combines the strengths of each system:
removing waste while
improving process flow • Lean • Six Sigma
to achieve speed and – Guiding principles based – Focus on Voice of the
agility at lower cost. The operating system Customer
focus of Lean is to – Relentless elimination of all – Data and fact based decision
increase the percentage waste making
of value-added work – Creation of process flow and – Variation reduction to near
performed by a demand pull perfection levels
company. Lean – Resource optimization – Analytical and statistical rigor
recognizes most – Simple and visual
businesses spend a
relatively small portion of
Strength: Efficiency Strength: Effectiveness
their energies on the true
delivery of value to a
customer. While all
companies are busy it is An Extremely Powerful Combination!
estimated for some
companies as little as 10% of their time is spent on value-added work, meaning as much as 90% of
time is allocated to non value-added activities, or waste.
67
Elements of Waste
Lean Six Sigma (cont.)

Forms of waste include: Wasted capital (inventory), wasted material (scrap), wasted time (cycle
time), wasted human effort (inefficiency, rework) and wasted energy (energy inefficiency). Lean is
a prescriptive methodology for relatively fast improvements across a variety of processes, from
administrative to manufacturing applications. Lean enables your company to identify waste where
it exists. It also provides the tools to make improvements on the spot.
Lean focuses on what it calls the Value Stream, the sequence of activities and work required to
produce a product or to provide a service. It is similar to a Linear Process Flow Map but it contains
its own unique symbols and data. The Lean method is based on understanding how the Value
Stream is organized, how work is performed, which work is value added versus non-value added
and what happens to products and services and information as they flow through the Value
Stream. Lean identifies and eliminates the barriers to efficient flow through simple, effective tools.
Lean removes many forms of waste so Six Sigma can focus on eliminating variability. Variation
leads to defects, which is a major source of waste. Six Sigma is a method to make processes
more capable through the reduction of variation. Thus the symbiotic relationship between the two
methodologies.
Project Requirements for Lean
Employees at some level have been de-sensitized to waste: “That is what we have always done.”
Lean brings these opportunities for savings back into focus with specific approaches to finding and
eliminating waste.
68
Elements of Waste
Seven Components of Waste
Muda is classified into seven components:

– Overproduction
– Correction (defects)
– Inventory
– Motion
– Overprocessing
– Conveyance
– Waiting
Sometimes additional forms of muda are added:

– Under use of talent
– Lack of safety
Being Lean means eliminating waste.
Overproduction
Overproduction is producing more than the next step needs

or more than the customer buys.
– It may be the worst form of waste because it contributes to all the
others.
Examples are:
üPreparing extra reports
üReports not acted upon or even read
üMultiple copies in data storage
üOver-ordering materials
üDuplication of effort/reports
Waste of Overproduction relates to the

excessive accumulation of work-in-process
(WIP) or finished goods inventory.
Producing more parts than necessary to satisfy the customer’s quantity demand thus leading to
idle capital invested in inventory.
Producing parts at a rate faster than required such that a work-in-process queue is created –
again, idle capital.
69
Elements of Waste
Correction
Correction of defects is as obvious as it sounds.
Examples are:
üIncorrect data entry
üPaying the wrong vendor
üMisspelled words in
communications
üMaking bad product
üMaterials or labor
discarded during
production
El i m i n at e er o r s!!
Waste of Correction includes the waste of handling
and fixing mistakes. This is common in both
manufacturing and transactional settings.
Correcting or repairing a defect in materials or parts adds unnecessary costs because of additional
equipment and labor expenses. An example is the labor cost of scheduling employees to work
overtime to rework defects.
Inventory
Inventory is the liability of materials that are bought, invested

in and not immediately sold or used.
Examples are:
üTransactions not
processed
üBigger “in box” than “out

box”
üOver-ordering materials
consumed in-house
üOver-ordering raw
materials – just in case
Waste of Inventory is identical to overproduction

except it refers to the waste of acquiring raw material
before the exact moment it is needed.
Inventory is a drain on an organization’s overhead. The greater the inventory, the higher the
overhead costs become. If quality issues arise and inventory is not minimized, defective material is
hidden in finished goods.
To remain flexible to customer requirements and to control product variation we must minimize
inventory. Excess inventory masks unacceptable change-over times, excessive downtime, operator
inefficiency and a lack of organizational sense of urgency to produce product.
70
Elements of Waste
Motion
Any movement of people or machinery that does not contribute added value to the product; i.e.
programming delay times and excessive walking distance between operations.
Overprocessing
Overprocessing is tasks, activities and materials that do not

add value.
– Can be caused by poor product or tool design as well as from not
understanding what the customer wants.
Examples are:
üSign-offs
üReports containing more

information than the
customer wants or needs
üCommunications, reports,
emails, contracts, etc.
containing more than the
necessary points (briefer is
better)
Waste of Overprocessing relates to over-
processing anything that may not be adding üVoice mails that are too
value in the eyes of the customer. long
Processing work that has no connection to advancing the line or improving the quality of the product.
Examples include typing memos that could be had written or painting components or fixtures internal
to the equipment.
71
Elements of Waste
Conveyance
Conveyance is incidental, required action that does not directly contribute value to the product.
Perhaps it must be moved however, the time and expense incurred does not produce product or
service characteristics that customers see.
It is vital to avoid conveyance unless it is supplying items when and where they are needed (i.e.
just-in-time delivery).
Waiting
Waiting is nonproductive time due to lack of material, people

or equipment.
– Can be due to slow or broken machines, material not arriving on
time, etc.
Examples are:
üProcessing once each

month instead of as the
work comes in
üShowing up on time for a

meeting that starts late
üDelayed work due to lack

of communication from
another internal group
Waste of Waiting is the cost of an idle resource.
Idle time between operations or events; i.e. an employee waiting for machine cycle to finish or a
machine waiting for the operator to load new parts.
72
Elements of Waste
Waste Identification Exercise
Notes
73
Elements of Waste
5S – The Basics
The term “5S” derives from the Japanese words for five practices leading to a clean and
manageable work area. The five “S” are:
‘Seiri' means to separate needed tools, parts and instructions from unneeded materials and to
remove the latter.
'Seiton' means to neatly arrange and identify parts and tools for ease of use.
'Seiso' means to conduct a cleanup campaign.
'Seiketsu' means to conduct seiri, seiton and seiso at frequent, indeed daily, intervals to maintain a
workplace in perfect condition.
'Shitsuke' means to form the habit of always following the first four S’s.
Simply put, 5S means the workplace is clean, there is a place for everything and everything is in its
place. The 5S will create a work place that is suitable for and will stimulate high quality and high
productivity work. Additionally it will make the workplace more comfortable and a place of which you
can be proud.
Developed in Japan, this method assume no effective and quality job can be done without clean and
safe environment and without behavioral rules.
The 5S approach allows you to set up a well adapted and functional work environment, ruled by
simple yet effective rules. 5S deployment is done in a logical and progressive way. The first three S’s
are workplace actions, while the last two are sustaining and progress actions.
It is recommended to start implementing 5S in a well chosen pilot workspace or pilot process and
spread to the others step by step.
74
Elements of Waste
English Translation
There have been many attempts to force 5 English “S” words to maintain the original intent of 5S
from Japanese. Listed below are typical English words used to translate:
1. Sort (Seiri)
2. Straighten or Systematically Arrange (Seiton)
3. Shine or Spic and Span (Seiso)
4. Standardize (Seiketsu)
5. Sustain or Self-Discipline (Shitsuke)
Place things in such a

way they can be
easily reached
whenever they are
needed.
Sort Straighten
Identify necessary Shine
items and remove Visual sweep of areas,
5S
unnecessary ones, eliminate dirt, dust and
use time management. scrap. Make workplace
shine.
Standardize
Self-Discipline Work to
standards,
Make 5S strong in habit. maintain
Make problems appear standards,
and solve them. wear safety
equipment.
Regardless of which “S” words you use the intent is clear: Organize the workplace, keep it neat and
clean, maintain standardized conditions and instill the discipline required to enable each individual to
achieve and maintain a world class work environment.
75
Elements of Waste
5S Exercise
Notes
76
Elements of Waste
You have now completed Define Phase – Elements of Waste.
Notes
77
Lean Six Sigma

Black Belt Training
Define Phase
Wrap Up and Action Items
Now we will conclude the Define Phase with “Wrap Up and Action Items”.
78
Define Phase Overview—The Goal
Define Action Items
At this point you should all understand what is necessary to

complete these action items associated with Define.
– Charter Benefits Analysis

– Team Members
– Process Map – high level
– Primary Metric
– Secondary Metric(s)
– Lean Opportunities
– Stakeholder Analysis
Del i ver
– Project Plan t he
– Issues and Barriers G o o d s!
79
Six Sigma Behaviors
• Being tenacious, courageous
• Being rigorous, disciplined
• Making data-based decisions
• Embracing change & continuous learning Wal k

t he
• Sharing best practices Wal k !
Each “player” in the Six Sigma process must be

A ROLE MODEL
for the Six Sigma culture.
Define Phase — The Roadblocks
80
DMAIC Roadmap
Define Phase Deployment

The importance of the
Define Phase is to begin
to understand the problem
and formulate it into a
project. Notice that if the
Recommended Project
Focus is approved the
next step would be team
selection.
81
Action Items Support List

These are some additional questions to ensure all the deliverables are achieved.
Define Questions
Step One: Project Selection, Project Definition And Stakeholder Identification
Project Charter
· What is the Problem Statement? Objective?
· Is the Business Case developed?
· What is the primary metric?
· What are the secondary metrics?
· Why did you choose these?
· What are the benefits?
· Have the benefits been quantified? It not, when will this be done?
Date:____________________________
· Who is the customer (internal/external)?
· Has the COPQ been identified?
· Has the controller’s office been involved in these calculations?
· Who are the members on your team?
· Does anyone require additional training to be fully effective on the team?
Voice of the Customer (VOC) and SIPOC defined
· Voice of the Customer identified?
· Key issues with stakeholders identified?
· VOC requirements identified?
· Business Case data gathered, verified and displayed?
Step Two: Process Exploration
Processes Defined and High Level Process Map
· Are the critical processes defined and decision points identified?
· Are all the key attributes of the process defined?
· Do you have a high level process map?
· Who was involved in its development?
General Questions
· Are there any issues/barriers that prevent you from completing this phase?
· Do you have adequate resources to complete the project?
· Have you completed your initial Define report out presentation?
82
You have now completed Define Phase.
Notes

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1

Lean Six Sigma

Welcome to the Lean Six Sigma Black Belt Training Course.

We begin in the Define Phase with “Understanding Six Sigma”.

Understanding Six Sigma

We will examine the

Six Sigma Fundamentals

Wrap Up & Action Items

What is Six Sigma…as a Symbol?

The Blue Line designates

Understanding Six Sigma

What is Six Sigma…as a Value?

When measuring the

What is Six Sigma…as a Measure?

The probability of creating a defect can be estimated and translated

Understanding Six Sigma

“Sigma Level” is:

The likelihood of a defect decreases as the number of Standard Deviations

What is Six Sigma…as a Metric?

Understanding Six Sigma

What is Six Sigma…as a Benchmark?

Yield PPMO COPQ Sigma

99.9997% 3.4 <10% 6 World Class Benchmarks

99.976% 233 10-15% 5 10% GAP

99.4% 6,210 15-20% 4 Industry Average

93% 66,807 20-30% 3 10% GAP

65% 308,537 30-40% 2 Non Competitive

50% 500,000 >40% 1

What does 20 - 40% of Sales represent to your Organization?

What is Six Sigma…as a Method?

Understanding Six Sigma

What is Six Sigma…as a Tool?

Six Sigma contains a broad set of tools interwoven in a

Six Sigma has not created new tools, it has simply

Understanding Six Sigma

What is Six Sigma…as a Goal?

Low Hanging Fruit

1 - 2 Sigma Ground Fruit

What is Six Sigma…as a Philosophy?

Understanding Six Sigma

History of Six Sigma

The Phase Approach of Six Sigma

Define Measure Analyze Improve Control

GENERAL ELECTRIC MOTOROLA

Understanding Six Sigma

DMAIC Phases Roadmap

Define Phase Deployment

Here is a more granular

This is what you will

Understanding Six Sigma

Define Phase Deliverables

 Charter Benefits Analysis

Six Sigma Strategy

Six Sigma is a Breakthrough Strategy

– Widened the scope of the definition of quality

Success of Six Sigma depends on the extent of

Understanding Six Sigma

Bad Good Bad

The Problem Solving Methodology focuses on:

There are many examples to describe dependent and independent

Understanding Six Sigma

Problem Solving Strategy (cont.)

The X’s determine how the Y performs.