Six Sigma Green Belt Training Program: Advisory Services

Six Sigma Green Belt Training Program
ADVISORY SERVICES
Prelude to Six Sigma
Expectations form the Organization
Drivers of Project Selection
Bigger Ys
Voice Of Voice Of Voice Of

Keep an Outside - In perspective
The Employee The Customer The Shareholder
Key output metrics that are

aligned with the strategic
Business Big Ys goals / objectives of the business.
Big Ys provide a direct measure
of business performance
Process
Ys Y
Y Key output metrics that
Y summarize process
performance
Y
Project Y
Key project metric defined
from the customer perspective
X1 X2 X3
Any parameters that
influence the Y
Strong Linkage between Projects & Big Ys is Important

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Gather VOC
Translate to needs statement

Identify customer Gather verbatim VOC & & develop a CTQ -
segments Determine Service Quality Project Y metric output
that need to be targeted Issue characteristic
• List your customers • Review existing VOC data

• Define Customer • Decide on what to collect
Segments • Use appropriate tools to
• Narrow the list of gather VOC
customers – Surveys
– Interviews
– Be a customer
– Focus Group
– Customer Observation
– Listening Posts
– Competitive Comparison
• Collect data
Customers Requirements determines quantifiable Process Metrics “CTQ’

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Gather VOC
Translate to needs statement

Identify customer Gather verbatim VOC & & develop a CTQ -
segments Determine Service Quality Project Y metric output
that need to be targeted Issue characteristic
• Organize all customer data

• Translate VOC to specific
needs
• Define CTQs for needs
• Prioritize CTQs
• Contain problem if necessary
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Affinity Diagram – Credit Card Example
Flexible Easy Personal Advice/

Product Availability Consulting
Process Interface
Low Interest Easy Will Come To Knowledgeable Knows About

Rate Application My Facility Reps My Finances
Variable Terms Easy Access
To Capital Available Professional Knows About
Outside My Business
All Charges Normal
Clearly Stated Quick Business Friendly
Makes Finance
Decision Hours Suggestions
Pay Back Make Me Feel
When I Want Can Apply Comfortable
Over Phone Available Cares About
No When I Need My Business
To Talk Patient During
Prepayment Know Status
Penalties/ Process
Of Loan During Has Access To
Charges Application Responsive Experts
To My Calls
Pre-Approved Know Status Provides
Credit Of Loan (Post- Answers To
Approval) Talk To Questions
One Person
Calls If
Preference If Problems Arise
Bank Customer
Verbatim VOC High-Level Needs

Organize VOC into broad categories
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Translating VOC into CTQ’s
VOC CTQs
Gather verbatim VOC Translate to needs

Identify customer
& statement
segments
Determine Service & develop a CTQ -
that need to be
Quality Project Y metric output
targeted
Issue characteristic
Customers Requirements determines quantifiable Process Metrics “CTQ’
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Example: Translating VOC to CTQ’s
Verbatim “ You take too much time in getting back to me!”

“ These forms are too cumbersome!”
Specific - Quick Response

Needs - User Friendly Forms
Validate
CTQ - Process Turn Around Time not more than 10 m
CTQs
with customer - Form < 2 pages & < 10 minutes to complete
What gets measured gets managed… ensure measurable CTQs
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Identify “Must Be’s” affecting CTQ’s
SHAREHOLDERS &
CUSTOMERS
COMPLIANCE BUSINESS PROCESS
EFFECTIVENESS
EMPLOYEES PROJECT CTQ COST & COMPETITORS
INTEGRITY OF CONTROLLERSHIP
COMMUNICATIONS & BUSINESS
INTERNAL UPSTREAM / STRATEGY
DOWNSTREAM
CUSTOMERS
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Prioritizing CTQ’s – Kano Model
Satisfaction
Delighters +
One-Dimensional
Innovation
Competitive Priority
Free upgrades Seat comfort
Individual movies and games Quality of refreshments
Special staff attention/services Friendliness of staff
Computer plug-ins (power Baggage speed
sources)
On-Time arrival
Dysfunctional Functional
Must Be
Critical Priority
Safe arrival
Accurate booking
Baggage arrives with
passenger
99% system uptime
Dissatisfaction
Kano Model helps to prioritize our efforts towards satisfying customers
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Prioritizing CTQ’s - Kano Model
• Kano Model / Theory:

– The Kano theory helps prioritize teams improvement efforts after needs & CTQ’s have
been established. The team should refrain from translating CTQ’s to the Kano Model but
rather have customer VOC verify where the need / CTQ should feature using the model
– For some customer needs, customer satisfaction is proportional to the extent to which
the product or service is fully functional
– The horizontal axis indicates how fully functional a product/service is; and the vertical
axis indicates customer satisfaction
– It is to be expected over a period of product life cycle that (the product) could shift from
being a Delighter to a One Dimensional to a Must - Be (e.g., invention of TV)
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Prioritization of Six Sigma Projects
• Financials help prioritize projects

• Focus & Motivate Teams to deliver results
• Incremental Revenue
– Volume Driven Metrics
 Increased Capacity
 Improved product quality/service
 Improved commercial processes
– Price Driven Metrics
• Decreased Cost
– Reduced Rework
– Increased Labor efficiency
– Reduced Operating expenses (fixed and variable costs)
– Reduced Plant and equipment depreciation or lease expense
Projects can focus on Hard Gains or Soft gains
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Work out session –
Identify area of improvement
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Contents
Define
Customer Expectations of the process?
Measure
What is the frequency of defects?
Analyze
Why, Where & When do defects occur?
Improve
How can we fix the Process?
Control
How can we keep the process fixed?
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Define
Customer Expectations of the Organization
Contents - Define
1 DETERMINE THE PROJECT CTQs

Identify your customers
Gather “VOC”
Organize VOCs
Prioritize VOCs
Translate VOC to CTQs2 DEFINE THE PROJECT
In-Frame/Out-Frame
15 Word Flip Chart 3 CHARTER
Backward Imaging
Business Case
Problem & Goal Statement
Project Scope
Milestones
Roles & Responsibility
4 MAP THE PROCESS
Process Operational Definition

Benefits of Process Mapping
SIPOC Model
Levels of Mapping
Deliverables: CTQs Identified Charter SIPOC Mapping Guidelines
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Charter
• A Charter:
– Clarifies what is expected of the team
– Keeps the team focused
– Keeps the team aligned with organizational priorities
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Sample Project Charter
Project Name Improving Accuracy of Payments Processing

Process name Accounts Payables Process for Malaysia
Sub Process Name Black Belt HT Project Number
Sponsor HK
Business Case Problem / Opportunity Statement Goal Statement
The Malaysian team is presently handling The data for the month of October 2002 To reduce the number of errors to less
the trade creditor payments for Bank of shows that 65 errors which were corrected than 10 errors (both first pass and second
Malaysia.Average lines processed being during processing and there were seven pass) per month by end of 31st
in the range of 15,000 to 16,000 per errors identified by the Customers which led December 2002
month. to Customer Complaints during the month.
Many a time, there are few errors which if
passed on to the customers which may
have a financial impact thus incurring a
monetary loss and high Customer
dissatisfaction. Such errors also have an
impact on the TAT as it results in rework.
Project Scope Includes Project Excludes Project Milestones
Includes vendor payments, staff claims. Project Excludes Fixed Assets batch run, Start Date: 28-Oct-02 End Date: 31-Dec-02
Target Actual TG
Daily Batch run and Account reconciliations.
Date Date Review
Define 1-Nov-02 ###### 1-Nov-03
Measure 16-Nov-02 ###### ########
Analyze 23-Nov-02 ###### ########
Improve 30-Nov-02 ###### 31-Jan-03
Control 7-Dec-02 ###### ########
Project CTQ Details Project Comments
Process CTQs Unit USL Target
Accuracy # 10 / month 5 / month
Project Charter Sign Off ( With date)
Current Target Sponsor
sigma 5.04 5.29 GB/BB
BB/QL
Project Translation Plans Project Benefits Estimate
Possible to roll out the model to other AP shops in BOM
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Sample Project Charter
Roles & Responsibilities

Interested Time
Name Approver Resource Member
Party Commitment
Hk X 2 Hours a month
V IV X 2 Hours a month
Ramanan X 2 Hours a month
Venkata X 4 Hours a week
Balaji X 4 Hours a week
Hema X 4 Hours a week
AC X 1 Hour a month
Estimated Benefits( Enter details for columns whichever are applicable)

Hard Gains Unit Amount Assumptions Soft Gains Unit Assumptions
End Customer Satisfaction
Sigma Increase
Employee Satisfaction
Shareholder Satisfaction
CTQ: Accuracy
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Elements of a Project Charter
Business Big Ys
What is & what is not
included? What are the
Process Ys The problem statement boundaries? In scope/
is a description of what out scope?
is wrong & where?
(quantify - % / $$$)
What is the improvement Key Milestones /

Does project “Y” team seeking to achieve? Timelines / Detailed Plan
link to business Y’s?
Problem / Goal Resources /

Business Case / Project Milestone /
Opportunity Statement Team Members
Benefits Scope
Statement Project Plan Roles
Start with a verb (e.g., reduce, eliminate, control, increase) Who are the key resources ?
Focus of project (cycle time, accuracy, etc.) What will be the roles of BB’s /
Target (by 50%, by 75%) GB’s / Sponsor / MBB’s
Deadline
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Project Scope
• What process will the team focus on?

• What are the boundaries of the process we are to improve?
• Start point? Stop point?
• What resources are available to the team?
• What (if anything) is out of bounds for the team?
• What (if any) constraints must the team work under?
• What is the time commitment expected of team members?
• What will happen to our “regular jobs” while we are doing the project?
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In Frame / Out Frame - Project Scoping Tool
• Draw a large square “picture frame” on a flip chart (or use tape on a wall) and use
this metaphor to help the team identify what falls inside the picture of their project
and what falls out. This may be in terms of scope, goals, and roles
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Process Definition & Elements
• A collection of activities that takes one or more inputs and transforms them into
outputs that are of value to the customer
“The Business Process”
Inputs Outputs
Customer(s)
Supplier(s)
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Process Mapping & Benefits
CTQs CTQs
S I P O C
Suppliers Inputs Process Outputs Customers
Measures Measures
Process
Map
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Process Mapping & Benefits
• Supplier: The provider of inputs to your process

• Input: Materials, resources or data required to execute your process
• Process: A collection of activities that takes one or more kinds of input and
creates output that is of value to the customer
• Output: The products or services that result from the process
• Customer: The recipient of the process output – may be internal or external
• CTQs: Critical to quality characteristics; A specific attribute or quality of the
output that is a key requirement for customer satisfaction
• Boundary: The limits of a particular process, that define the start and stop points
of the process
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Levels of Process Mapping
Core Process Credit

Ops Messaging Payments Trades Billing
(Level I)
Subprocesses Exports Imports

(Level 2)
Subprocesses Negotiation Payments Collections

(Level 3)
Microprocesses
(Level 4 & Below)
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Process Mapping Guidelines
Inputs Process Outputs

Suppliers Customers CTQs
• Define business process to be reviewed – name it – agree on beginning and end of process –
bound it.
• Refer to CTQ work to identify primary outputs, the customers who receive them, and the
customers’ CTQs
– Use nouns for outputs (e.g., sales call, proposal, etc.)
– Use adjectives for CTQs (.e.g., timely, knowledgeable, accurate)
• Identify the process steps using brainstorming and affinity techniques
– Write large – One step per card – Don't try to establish order
– All steps should begin with a verb – Don't discuss process steps in detail
• Use brainstorming and affinity techniques to identify critical inputs which affect the quality
of the process
• For each critical input, identify the “supplier” who provides it
• Validate to be sure the map represents the situation as it really is today (the “as is” map) –
not how you think it is, or how it should be
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G.R.P.I
• G.R.P.I. Check List - This tool is based on a simple model for team formation. It
challenges the team to consider four critical and interrelated aspects of
teamwork:
• Goals, Roles, Processes and Interpersonal relationships.
• It is invaluable in helping a group become a team.
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G.R.P.I
• Uses: An excellent organizing tool for newly-formed teams or for teams that have
been underway for a while, but who have never taken time to look at their
teamwork.
• Ideally, this tool should be used at one of the first team meetings. It can and
should be updated as the project unfolds.
• Steps:
– Distribute copies of the check list to all team members prior to a team meeting. Invite
team members to add details/examples on each of the four dimensions of the check list.
Ask each team member to bring his/her completed checklist to the team meeting.
– At the team meeting discuss and resolve issues related to the check list.
– Share certain aspects with Champion/Functional Leader if appropriate.
– OPTION: When there is considerable disagreement or tension within the team
environment, team members can choose to complete the questionnaire individually and
turn it in to a neutral party who will collate the data and give it back to the team in an
aggregate fashion (thus protecting the anonymity of individual team members).
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G.R.P.I
• Expanded Version of the Tool: Useful when a more detailed look at team elements
is required.
• How would you rate the degree to which your team presently has CLARITY,
AGREEMENT and EFFECTIVENESS on the following GRPI-related elements?
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G.R.P.I
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Great Project
• Be clearly bound with defined goals

– If it looks too big, it is
• Be aligned with critical business issues and initiatives
– It enables full support of business
• Be felt by the customer
– There should be a significant impact
• Work with other projects for combined effect
– Global or local “Beta Themes”
• Show improvement that is locally actionable
• Relate to your day job
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Project Selection
• Success Factors
– Project scope is manageable
– Project has identifiable defect
– Project has identifiable impact
– Adequate buy-in from key stakeholders
• To be successful
– Set up project scope charter and have it reviewed
– Measure where defects occur in the process
– Assess and quantify potential impact up-front
– Perform stakeholder analysis
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Project Selection
• Common Pitfalls
– Re sourcing of project is inadequate
– Duplicating another project
– Losing project momentum
– Picking the easy Y, not the critical Y
• Avoiding Pitfalls
– Identify and get committed resources up-front
– Research database and translate where possible
– Set up milestones and communications plan
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Define Deliverables
• Identify project through business theme and personal issue

• Review Six Sigma Quality Project Tracking database for similar projects
• Identify internal/external CTQs
• Create high-level process map
• Identify potential data sources
• Identify team members and business functions required
• Identify Information Technology (IT) requirements
• Identify financial impact
• Open project in Six Sigma Quality Project Tracking database
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Create a Project Charter
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Key Learning Points and Summary
•
•
•
•
•
•
•
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Measure
Quantification of problem and causes
Measure
1 SELECT PROJECT Y
Measures
CTQ Prioritization
Types of Data
Fishbone Diagram 2DEVELOP DATA COLLECTION PLAN
Establish Data collection

Plan
Define Operational
Definitions
Define Sampling Procedures3 VARIATION
Measurement System Display & Describe Variation
Analysis
Causes of Variation
Run Chart
Bar Chart
Normal Curve
Deliverables: Data Collection Plan MSA Results Data Plots
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Select Project Y
Example :
Employer
Big ‘Y’s
of Choice
Process CTQs/
VOC CTQs Retention Rate
Process Metrics
Project CTQ/
Attrition %
Project Ys
Essential to validate the linkage between Project CTQ, Process CTQs & Big Ys
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Select Project Y
• The foundation of the measure phase as the name suggests lies in the data
collection plan keeping the target of the project, process and business in mind
• The above steps have an inherent linkage in the sense that it would enable us to
cross check if our project CTQ is aligned to the process output characteristic
• The process output characteristic can than be rolled up into process and
business metric
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Understanding Measures
• Measure : Any element relating to the process under study which is operationally
definable & quantifiable. Measures can be understood better by classifying them
in the following ways:
Classification
of Measures
Based on SIPOC Based on Focus Based on

Statistics
● Input ● Efficiency ● Continuous
● Process ● Effectiveness ● Discrete
● Output
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Based on SIPOC
INPUT PROCESS OUTPUT
Garbage in Garbage out How good is my Accurate? Timely??

process ?
Y = f(X1, X2, X3…………………. Xn) Productive??
Output Y is a function of various Inputs and Process Steps
Measures can be classified as Input, Process or Output Measures
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Based on SIPOC
• Where should parameters for measuring be focused?

– Output - because that is what our customers get
– Process - because that’s the way we perform
– & Input - because potentially “Garbage in could be Garbage out”
• Y is the output Measure where as X relates to various Inputs and Process
Measures
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Based on Focus
Measures for looking at Process Performance
Customer Focussed Process Focussed
Effectiveness Efficiency
The degree to which customer The amount of resources allocated in

CTQs are met and exceeded meeting and exceeding customer CTQs
• Examples • Examples
– Percent Defective – Cost per transaction
– Response Time – Turnaround time
– Billing Accuracy – Time per activity
– Amount of rework
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Based on Statistics
Continuum of Data Types
Discrete
Continuous
Binary Ordered Count

categories
Rankings Measured
or ratings on a continuous
Description Classified Counted
into one of discretely scale
two categories
Classification of the group into
categories based on distance
each travels daily to reach office
Categories : (0 - 2 Kms) Number of people Actual distance
Is this group ready to
Example (2- 5 Kms) who have come late traveled by each in
travel 100 km daily to
(5-10 Kms) today this group
reach office
(10-20 Kms) measured in Kms
Yes or No (20-50 Kms)
Decision of Group (50-100 Kms)
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Exercise – Type of Data
1. Percent defective parts in hourly production

2. Percent cream content in milk bottles (comes in four-bottle container sets)
3. Amount time it takes to respond to a request
4. Number of blemishes per square yard of cloth, where pieces of cloth may be of
variable size
5. Daily test of water acidity
6. Number of accidents per month
7. Number of defective parts in lots of size 100
8. Length of screws in samples of size ten from production lots
9. Number of employees who had an accident
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Based on Statistics
• Some more examples:

– An instrument processed is defective or non defective
– Turn Around time for the batch processing
– Ratings for a Trainer on a point scale (say 5 point)
• Points to Remember:
– It is possible to convert Continuous Data to Discrete, however visa-versa is not possible
– Continuous Data gives more insight on the process performance than Discrete
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Must be for “Measures”
• Following criteria should be kept in mind while choosing Measures

– Choose the Output Measure from a Customers View (Outside-In)
– The Cost Benefit Ratio for the data collection should be justifiable
– The measure should be relevant to the process
– A clear Operational definition of the measure has been agreed upon by all Stakeholders
– The measure and subsequent data collection should enable analysis, evaluations and
actions
– The measure should truly be a representative of the deepest understanding of the
process
– Include efficiency & effective measures for process excellence
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Cause & Effect Diagram
High Level Prompters

to help generate Or use 4
Write the possible Material possible causes
causes here P’s
Method
Printer Problem Linked Deals not getting
Changes made in
Bank Profile with released on time
operational data
Printing not clear wrong Swift IDs Machine
Forced Priority of deals
Handwriting not legible To many deals held

Write the Correction of errors with same person
Full doc not
effect here scanned in previous deal Changes in Bill
Delays current deall category
Why do we have Late by Spoke
Processing
Lack of Typing Skill
Awaiting Memo Replies
(Clarifications) Creation of Bank ID,
Cust ID Fear of committing errors
To many amendments Availability of Imex for
long hours Alternations of Errors making
Learning Curve in previous steps
Bunching of Documents
Instns not clear Measurement
Complicated Deals
Lack of Training Program
Absenteeism
for new recruits
Late Scanning & Receipt
Man
Mother
nature
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Cause & Effect Diagram
How do we carry it out?

• Brainstorming without any prior preparation as the methodology
• Be sure that everyone in the team agrees on the problem statement
• Bring down the problem statement to a level more in detail as compared to the
statement in the Project Charter
• Follow the principle of “ 5 Why s ?”. Keep asking ”Why” till the group arrives at a
logical end to the chain of causes
• Include maximum possible information on
– What
– Where
– When &
– How Much
• Minitab Software helps you to generate the template of a Fish-Bone Diagram. You
can draw a blank diagram, or a diagram filled in as much as you like. Although
there is no "correct" way to construct a fishbone diagram, some types lend
themselves well to many different situations.
Stat > Quality Tools > Cause-and-Effect
Menu Pull-Down Sequence
in Minitab
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Data Collection Plan
Ensure
Why collect What to How to Consistency &
Collect
Data? Collect ? Collect? Stability Data
The Identify Formulate Develop Pilot

purpose of Measure Data Measurement Collection
the Data Collection System and
Collection Plan Analysis Validation
exercise Define
Plan
Operational
Definitions Sampling Test and
Strategy Validate Train Data
Collectors
What Data
to be Pilot Data
collected Collection Monitor and
Plan Improvise
Word of Caution : Wrong Data Leads to Wrong Conclusions
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Data Collection Plan
• Data collection occurs multiple times throughout DMAIC. The data collection plan
described here can be used as the guide for data collection. This help us ensure
that we collect useful, accurate data that is needed to answer our process
questions
• It is important to be clear about the data collection goals to ensure the right data
is collected. If your data is in the wrong form or format, you may not be able to
use it in your analysis
• Operational definition is a helps to guide thinking on what properties will be
measured and how they will be measured. There is no single right way to write an
operational definition. There is only what people agree to for a specific purpose.
The critical factor is that any two people using the operational definition will be
measuring the same thing in the same manner.
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Template - Data Collection Plan
• A format of an excel spread sheet that can be used for data collection plans for
our projects. The sample data collection plan above is for the Project CTQ, in this
example, Number of Rejections.
However one should remember that based on C-E Diagram and the SIPOC all
those Xs which the team feels to have a influence over the Y should also be
included in the data collection plan.
• Example of a Data Collection Plan
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Complete till Fish Bone and Data
Collection in the project
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Sampling
• What is Sampling all about??

– Sampling is a process of collecting a portion or a sub-set of the total data available. This
total data available or could be available is often referred to as population. The sample
so drawn up from the population should help us to draw conclusions about the
population.
• Some points to consider while collecting data

– What amount of time is needed?
– How much cost is involved?
– Is it really possible?
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Sampling
• The Six Sigma team would always face a question “How much data do we need
to have a valid sample?” Though an important part of data collection is to obtain a
sample of reasonable size, it is one of many questions to be addressed during the
planning and development of a data collection strategy. Sample size is just one
aspect of a valid data collection activity
• The validity of the data is impacted by many things – for example, operational
definitions, data collection procedures and recording
• In process improvement, there are a number of questions to keep in mind relative
to sampling:
• Is the data representative of the situation or is bias possible?
• Why am I sampling? To improve or control a process or to describe some
characteristic of a population?
• What are the key considerations for either a process or population situation?
• What is the approach to sampling (e.g., random, systematic, etc.) and
approximately how many to sample?
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Sampling
• When to sample?
– Collecting all the data is impractical
– High cost implications due to population study
– Time availability
– Data collection can be a destructive process (crash testing of cars)
– When measuring a high-volume process
• When not to sample?

– The subset of data so collected may not be truly representative of the population thus
leading to a wrong conclusion (every unit is unique – e.g., structured deals or auctioning
events)
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Types of Sampling
Types of Sampling
Random / Probability Non Random/Judgmental

All items in the population have The groups knowledge and opinions
an equal chance of getting are used to identify items from the
selected population
• Examples: • Examples:
– Cycle tyres being produced – Every third tyre used with
in the assembly line have a an aircraft is cut open and
random check on the daily checked for quality
production
– Sampling for deducing the
– 10% quality check on daily error rates during high
processed transactions
volumes / near cut off times
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Approaches for Sampling
What do you want to study…….the Process or the Output???
Process Data
Population Data
Process Approach Population Approach
Assess the stability of the population over time

Make probability statements about the
population from the sample
• Are the shifts, trends, or cycles occurring?
• Do I take a special or common cause
• I have 95% confidence that the mean of the
variation approach to process
population for Turn Around Time is between
improvement?
1.5 and 2.5 seconds
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Approaches for
Sampling
Process Population
Systematic Sampling Rational Sub-grouping Random Stratified Random

Sampling Sampling
• Measurement of AC • While studying the arrival rate • Survey across our • Average Cycle Time for
Room Temperature. of documents as dispatched organization to know LC Issuance Process of
Collect one data point by the customer. The entire what percentage of our different countries.
every 1 hour for the day is split up into quadrants, employees have visited Each Country is a
entire day. rational being the arrival rate the intranet in last 7 Strata (Segment).
of documents is similar within days. Select employees Collect random data
each quadrant and different from population at from each Strata
between quadrants random and collect
data.
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• Systematic sampling is typically used in process sampling situations when data

is collected “real time” during process operation. Unlike population sampling, a
frequency for sampling must be selected
• Systematic sampling involves taking samples according to some systematic rule
– e.g., every 4th unit, the first five units every hour, etc. One danger of using
systematic sampling is that the systematic rule may match some underlying
structure and bias the sample
– For example, the manager of a billing center is using systematic sampling to monitor
processing rates. At random times around each hour five consecutive bills are selected
and the processing time measured
• Like random samples, stratified random samples are used in population sampling
situations, when reviewing historical or batch data
• Stratified random sampling is used when the population has different groups
(strata) and we need to ensure that those groups are fairly represented in the
sample. In stratified random sampling, independent samples are drawn from each
group. The size of each sample is proportional to the relative size of the group
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Rational Subgrouping
The Process
12noon to 12.20pm 12.45pm to 1pm 1.20pm to 1.45pm Sample
Subgroup of
samples
• What does it mean

– Sample at point “A” in the process every Xth hour to discover the patterns in operation -
hunch plays a role - data drives decision
• Points to Remember
– Monitor process frequently enough to catch it in various phases of operation
– Several small subgroups to be measured at different points in time
– Higher frequency of measurements for an unstable & unpredictable process
– The frequency can be lowered in case of a stable process
– Processes working on lower Turn Around Time need a higher Frequency and vise versa
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Rational Subgrouping
• Rational subgrouping is the process of putting measurements into meaningful

groups to better understand the important sources of variation
• Rational sub grouping is typically used in process sampling situations when data
is collected “real time” during process operations. It involves grouping
measurements produced under similar conditions, sometimes called short-term
variation. This type of grouping assists in understanding the sources of variation
between subgroups, sometimes called long-term variation
• Guidelines For Using Rational Sub grouping
– Form subgroups with items produced under similar conditions
– To ensure items in a subgroup were produced under similar conditions, select items
produced close together in time
• Minimize the chance of “special causes” in variation in the subgroup, and
maximize the chance for “special causes” between subgroups
• Sub grouping over time is the most common approach; sub grouping can be done
by other suspected sources of variation (e.g., location, customer, supplier, etc)
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Sampling Bias
Sampling Bias
• Opinion on the abolition of a Student Union is being considered in an
University…..the target audience are students….a large number of those involved
in some political activity
• Deduction: 93% of the respondents were against the move.
• Bias occurs when systematic differences are introduced into the sample as a
result of the selection process
– Not representative of the population
– Will lead to incorrect conclusions about the population
65
Determining the Sample Size
• 3 metrics that determine the Sample Size

– Level of confidence (ZC):
 The Team needs to be sure of the adequate representation of the population with the
sample chosen
 The term used for the same is Level of confidence which increases with an increase
in the sample size
– Precision (∆)
 How accurate is the result as a deduction from the sample……what is the level of
accuracy needed in my sample…what kind of process are we dealing with
 Precision increases as sample size increases
– Standard deviation of the population (s)

 How much variation is in the total data population?
 As standard deviation increases, a larger sample size is needed to obtain reliable
results
Sample Size is not dependent on the “Population Size”
66
Sample Size for Continuous Data
ZC
– Is defined as the Z value at “c” level of confidence
– For example a 95% level of confidence is taken for which Z value is 1.96
2
– The Sample Size (n) can then be determined asn = (ZC) (s)
– Hence at 95% level of confidence n = 1.96 (s)

The measured
value can lie
between these
limits
What do we infer??
Target Value
The Six Sigma Team can thus infer that the mean for the population lies within m ± with
95% confidence - For service industry purposes we will use 95% confidence Interval
67
Sample Size for Discrete Data
p
– Is the estimate of the proportion defective for the population
– The maximum sample size is obtained at p = 0.5
2
– The Sample Size (n) can then be determined asn = (ZC) p (1-p)
2
– Hence at 95% level of confidence n = 1.96 p (1-p)
The measured
value can lie
between these
limits
What do we infer??
Proportion Defective - Proportion Defective Proportion Defective +

The Six Sigma Team can thus infer that the population proportion defective lies between
p± with 95% confidence
68
Measurement System Analysis (MSA)
TOTAL VARIANCE
Apparent variation = Process variation + Measurement variation
Double Challenge:
Reduce variation in both processes!
69
Terms of MSA
• Accuracy Measures the differences between Observed

average measurement against a Standard
Measures variation when one Operator

• Repeatability repeatedly takes the measurements of the
same unit with the same measuring
equipment
• Reproducibility Measures variation when various Operators

measure the same unit with the same
measuring equipment
70
GRR Example
71
GRR Example
72
GRR Example
73
GRR Example
74
Analyzing GRR Results
Analyzing Gage R&R Results

• R&R% of Tolerance
– R&R less than 10% - Measurement System “acceptable”
– R&R 10% to 30% - May be acceptable – make decision based on classification of
Characteristic, Application, Customer Input, etc.
– R&R over 30% - Not acceptable. Find problem, re-visit the Fishbone Diagram, remove
Root Causes. Is there a better gage on the market, is it worth the additional cost?
• % Contribution (or Gage R&R StdDev): GR&R Variance should be “small”
compared to Part-to-Part Variance
• Number of Distinct Categories
– < 2 - no value for process control, parts all “look” the same
– = 2 - can see two groups—high/low, good/bad
– = 3 - can see three groups—high/mid/low
– 4 or more acceptable measurement system (higher is better)
• Effective Resolution 50%, or more, of Xbar Chart outside control limits—implies
part variation “exceeds” Measurement System variation
75
AAA - Example
76
AAA - Example
77
AAA - Example
78
Analyzing AAA Results
• Within Appraiser Assessment Agreement graph

– shows you the consistency of each operator's answers. For each appraiser, the graph
consists of the following:
 Blue circle, which provides the actual percent matched
 Red line, which provides a 95.0% confidence interval for percent matched
 Blue cross and blue X, which provide the lower and upper limits for the 95.0%
confidence interval, respectively.
• Appraiser versus standard graph

– If you have a known standard for each part, then the percent matched between appraiser
and standard is plotted.
– The Appraiser versus Standard Assessment Agreement graph shows you the
correctness of each operator's answers. For each appraiser, the graph consists of the
following:
 Blue circle, which provides the actual percent matched
 Red line, which provides a 95.0% confidence interval for percent matched
 Blue cross and blue X, which provide the lower and upper limits for the 95.0%
confidence interval, respectively
79
Kappa
• If kappa = 1, then there is perfect agreement. If kappa = 0, then agreement is the same as
would be expected by chance. The higher the value of kappa, the stronger the agreement
between rating and standard. Negative values occur when agreement is weaker than
expected by chance, but this rarely happens. Depending on the application, kappa less than
0.7 indicates the measurement system needs improvement. Kappa values above 0.9 are
considered excellent.
Kendall's
• Use the p-values to choose between two opposing hypotheses, based on your sample data:
– H0: There is no association among multiple ratings made by an appraiser
– H1:The ratings are associated with one another
• The p-value provides the likelihood of obtaining your sample, with its particular Kendall's
coefficient of concordance, if the null hypothesis (H0) is true. If the p-value is less than or
equal to a predetermined level of significance (a-level), then you reject the null hypothesis
and claim support for the alternative hypothesis.
• Alternate hypothesis is good here as you are trying to judge if the match is due to chance or
significant match
80
Choosing between Kappa statistics or Kendall's coefficients

• When your classifications are nominal (true/false, good/bad,
crispy/crunchy/soggy), use kappa statistics.
• When your classifications are ordinal (ratings made on a scale), in addition to
kappa statistics, use Kendall's coefficient of concordance.
• When your classifications are ordinal and you have a known standard for each
trial, in addition to kappa statistics, use Kendall's correlation coefficient.
• Kappa statistics represent absolute agreement among ratings. Kappa statistics
treat all misclassifications equally.
• Kendall's coefficients measure the associations among ratings. Kendall's
coefficients do not treat all misclassifications equally.
The consequences of misclassifying a perfect (rating = 5) object as bad (rating =
1) are more serious than misclassifying it as very good (rating = 4).
81
Measurement System Analysis
82
Tools Displaying Data Variation
For a period of Time Over a period of Time

PERCENTAGE
I and MR Chart for C1

12%
8% INPUT ERROR
30 UCL=30.00
OMISSION
Indiv idual Value

PROCEDURE
18% 20
62% OTHERS
Discrete
Mean=15
10
160
140 0 LCL=3.68E-04
Data
120
No. of errors
Subgroup 0 10 20 30
Errors
Pie Chart
100
80 commited
60 20
Not updated UCL=18.43
40
Mov ing Range

20
0 10
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Remar
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0 LCL=0
Error fields
Bar Chart
Histogram
Measurement
Frequency
Run Chart
Continuous
Data Time I and MR Chart for C1
Measurement 30 UCL=30.00
Individual Value
20
Mean=15
10
0 LCL=3.68E-04
x
Subgroup 0 10 20 30
20
UCL=18.43
Moving Range
Frequency Diagram 10
R=5.640
Box Plot 0 LCL=0
83
Characteristics of Data
Characteristics of “data”
Central Tendency Dispersion

(Variation)
• Mean • Standard Deviation

• Median (SD)
• Mode • Range
• Quartile Values • Span
• Stability Factor
• A set of Data points can be compared and interpreted based on their Central
Tendency and Variation.
84
Central Tendency
• Consider the time taken for people to withdraw Cash (including queue time) from
two different ATM counters. Which Counter is better !!
Counter 1 Counter 2
10 10 Median is not
affected by • Mean
12 12
the presence – The arithmetic
13 13 average
9 9 of extreme
values – Can get skewed
8 8 with extreme
7 7 observations
8 8 – The deviations are
10 100 measure as
14 14 x distance from the
Mean 10.11 20.11 mean
Median 10 10
• Median (the ‘middle’
data point)
• Mode
– Mode is the data point which occurs the most
– The positioning of
the data set helps
often
determine median
– Mode is extensively used in the case of
– Takes into
discrete data which are ordered categories
account all values
but does not get
skewed
85
Dispersion
• Standard Deviation s • How much does each

(When central tendency is mean) point in the data set differ
from the mean
• The aggregate score can
help determine variation
of the process
• Range
• Range is the difference
(When central tendency is mean)
between the highest and
the lowest value of a set
of data points
• Span • The range of the data

(When central tendency is median) helps determine the span
• Extreme 5% observations
on either side can be
discounted
86
Normal Curve
• A Normal Curve originates from a Histogram. A histogram is a frequency

distribution chart showing the number of times a given value of the parameter we
are trying to measuring occurs.
Histogram of Processing Cycle Time, with Normal Curve

Normal Curve generated
by the Minitab Software
for curve-fitting 20
Frequency
Histogram showing the

10 Number of times ‘55’
has occurred in the data
45 50 55
Processing Cycle Time

Menu Pull-Down
Sequence
in Minitab
Stat > Basic Statistics > Display Descriptive Statistics > Graphs
• Minitab Software can be used to display a histogram, a histogram with a normal
curve & other graphical summary to be learnt later.
87
Normal Curve
34.13% 34.13%
13.60%
2.14% 13.60% 2.14%
0.13% 0.13%
-3s -2s -1s 0 +1s +2s +3s

68.26% Percentage of Data
95.46 getting covered under
%
99.73%
the curve
• Properties of a Normal Curve:

– The curve never touches the X axis…asymptotic
– Mean, Median and Mode coincide
– Curve can be divided in half with equal pieces falling either side of the most frequently occurring value
– The peak of the curve represents the center of the process
– The area under the curve represents virtually 100% of the product the process is capable of producing
88
Normality Plot
The minitab output of normality plot for a data set

Normal Probability Plot
.999
.99
.95
Probability
.80
.50
.20
.05
.01
.001 ‘P-Value’
Determines
the normality
24.8 25.8 26.8 27.8 28.8 29.8 30.8 31.8 32.8 33.8
of the data
C1
Average: 29.9371 Anderson-Darling Normality Test
StDev: 1.72224 A-Squared: 0.366
N: 90 P-Value: 0.427
Menu Pull-Down
Stat > Basic Statistics > Normality Test Sequence in Minitab
• Generates a normal probability plot and performs a hypothesis test to examine

whether or not the observations follow a normal distribution.
89
Straight Line 20 Exponential Curve

7 Roughly Normal Distribution
6
Exponential Distribution
Normal Probability Plot for an
Frequency
5 for a Normal Distribution Exponential Distribution
4 10
3
Percent
1
0 0
90
0 10 20 30 40 50 60 70 80
12 13 14 15 16 17 18
Bimodal curve “S” curve

Bimodal Distribution Long Tailed Distribution
6 6
5 5
4
Frequency
4 Normal Probability Plot For

3
Normal Probability Plot Frequency Long-Tailed Distribution
for a Bimodal Distribution 3
99
2 99
2 95
95
1 90
90
1 80
80
Percent
Percent
0 70
70
60 60
50 0 50
7 9 11 13 15 17 19 21 23 40 40
30 30
20
7 9 11 13 15 17 19 21 23 20
10 10
5 5
1 1
0 10 20 30
0 10 20 30
90
Types of Distribution
• The Shape of the distribution depicted by the data can be studied with the help of
a histogram or more precisely with Normal Probability Plot
Roughly Normal Distribution Exponential Distribution
20
7
6
5
Frequency
Frequency
4 10
3
2
1
0 0
12 13 14 15 16 17 18 19 0 10 20 30 40 50 60 70 80 90
Bimodal Distribution
6
5
4
Frequency
3
2
1
0
7 9 11 13 15 17 19 21 23
91
Quartile Value
• Quartile Values (Q1, Q3)
Q1 Q3
• Of great Use when the data is highly skewed
• Aims at dividing the data set in 4 quartiles and measuring the range in each
subsequently
• Each Quartile contains 25 percentile of the data
92
Stability Factor
• Skewed or Stable Ops Distributions:

– The stability factor (SF) is the ratio of the first quartile and third quartile values. The
formula for Stability Factor is:
SF = Q1/Q3
– The stability factor is interpreted such that the closer SF is to 1, the less variation there
is in the process. The further SF is from 1, the more variation there exists in the process
Q1 Q3
Q1 Q3
Q1 More Q1 Less
Q3 <1 Variation Q3 1 Variation
0 More Variation Less Variation 1
93
Box Plot
* Outlier
*
*
Highest Value
Third Quartile (75%) value

Each segment
represents Median
25% of the First Quartile (25%) value

data points
Lowest Value
Box Plot is another tool to visually display process dispersion
94
Box Plot
• Box Plots are graphical summaries of the patterns of variation in sets of data
• The horizontal lines at the top and bottom of the plot represent the highest and
lowest values beyond which the data becomes an outlier. The horizontal line in
the middle of the solid box represents the median, and the solid box represents
the middle 50% of the data, with 25% of the data on the top side of the box and
25% of the data on the bottom side of the box
• Points noted with an asterisk(*) represent extreme values or outliers
95
Descriptive Statistics
Descriptive Statistics
Variable: Processing Cycle
Time
Anderson-Darling Normality Test
A-Squared: 0.836
P-Value: 0.030
Mean 50.4118
StDev 2.2972
Variance 5.27718
Skewness 0.424275
Kurtosis 0.339406
45 47 49 51 53 55 57 N 100
Minimum 44.7533
1st Quartile 48.9910
Median 50.0208
3rd Quartile 51.8229
95% Confidence Interval for Mu Maximum 56.5353
95% Confidence Interval for Mu
49.9560 50.8676
49.8 50.3 50.8 95% Confidence Interval for Sigma
2.0170 2.6686
95% Confidence Interval for Median
95% Confidence Interval for Median
49.6825 50.5014
• Descriptive Statistics can be run on Minitab. The result will be shown as above.
One would be able to get information on Normality of the data, visual display of
data ( Normal curve), Box Plot, outliers, Mean, Median, Standard Deviation,
Quartile values. Menu Pull-Down
Stat > Basic Statistics > Display Descriptive Statistics Sequence
in Minitab
96
Run Chart
• A tool used to depict the behavior of the process under investigation over a
period of time
Median
Parameter
Time
• A run is defined as a single point or a series of sequential points where no point
is on the other side of the median
97
Patterns Observed in Run Charts
Shift / Mixtures Same Value / Clusters
Trend Cycle / Oscillation
98
Run Charts
99
Run Charts
100
Causes of Variations
Type of Variation Characteristics

Characteristics
Inherent to the
Common Cause process
Expected
Predictable
Normal
Random
Not Always Present

Unexpected
Unpredictable
Special Cause Not Normal
Not Random
• To distinguish between common & special causes variation, use display tools
that study variation over time such as run charts & control charts.
101
Analyze
Confer the assumption
Analyze
1 PROCESS CAPABILITY
Base lining
DPMO/DPU
Cp/Cpk
Calculate Sigma
2 IDENTIFY POSSIBLE CAUSES

Segmentation & Stratification
Sub-process Mapping
Process Map Analysis
Graphical Analysis Tools
Work Value Analysis 3 NARROW TO ROOT CAUSES
MUDA/MURI
Hypothesis Testing
• ANOVA
• t -Tests
• Chi-square Test 4 QUANTIFY THE OPPORTUNITY
Regression Analysis Determine the quantum of
Benefits from Root Causes
Deliverables: Process Sigma Verified Root Causes Estimate of Benef

103
Rolled Throughput Yield
Final Yield (FY) Yield at the end of the process excluding

scrap
100 Units Step 1 Step 2 Step 3 70 Units
Scrap 10 Units 10 Units 10 Units
Final Yield, FY = U/S = Units Passed/Units Submitted

FY = (100-30)/100 = .70 or 70%
104
Final Yield Ignores the Hidden Factory
HIDDEN FACTORY
Rework 10 Units 10 Units 10 Units
100 Units Step 1 Step 2 Step 3 70 Units
Scrap 10 Units 10 Units 10 Units
105
Classical Yield Ignores the Role of Hidden Factory

Scrap
Rework HIDDEN FACTORY
Operation Verify Product
106
Product of Throughput Yields

Rolled Throughput Yield (RTY) across the entire process
HIDDEN FACTORY
Rework 10 Units 10 Units 10 Units = 30 Units
100 Units Step 1 90 Units Step 2 80 Units Step 3 = 100 Units
Scrap 10 Units 10 Units 10 Units = 30 Units
FTY 90 % FTY 88.9 % FTY 87.5 % FTY 70 %

TPY 80 % TPY 77.8 % TPY 75.0 %
RTY .80 X RTY .778 X RTY .75 = 46.7 %
Probability of Zero Defects
107
Product of Throughput
Rolled Throughput Yield (RTY) Yields across the entire • How long can
process we sustain this
HIDDEN FACTORY situation
Rework 10 Units 10 Units 10 Units = 30 Units
How much is •
this
100 Units Step 1 90 Units Step 2 80 Units Step 3 = 100 Units performance
level costing
us
Scrap10 Units 10 Units 10 Units = 30 Units
• Where should
we focus to
improve the
FTY 90 % FTY 88.9 % FTY 87.5 % FTY 70 % process
TPY 80 % TPY 77.8 % TPY 75.0 %
RTY .80 X RTY .778 X
RTY . = 46.7 %
75
Probability of Zero Defects
108
Sigma Calculation
Defects Per Million

Process Sigma
Percentage Opportunities
(Z ST)
(DPMO)
6 99.99966% 3.4
5 99.9770% 230
4 99.3790% 6,210
3 93.320% 66,800
2 69.20% 308,000
Defects in the Process defects
w.r.t performance standards
109
Common Terms
• Critical-To-Quality Characteristics (CTQ): Customer performance requirements of

a product
• Defect: Any event that does not meet the specifications of a CTQ
• Defect Opportunity: Any event which can be measured that provides a chance of
not meeting a customer requirement
• Defective: A unit with one or more defects
• Dashboard: Graphical representation of process Measures providing a snapshot
of process health
110
Sigma Calculation
Calculating Process Sigma:

• No. of Units Processed / sample size observed (N)
• No. of defects observed (D)
• No. of Opportunities of defect per unit (O)
• Defects Per Opportunity = D

N*O
• Defect Per Million Opportunities = D

x 1,000,000
N*O
• Look up for the Sigma value in the Sigma Table
• Yield = 1 - Percentage Defective (The goodness of the process output)
111
Abridged Sigma Table
112
How to improve the process performance
• The Statistical Problem can be deduced from the data by concentrating our
efforts in 2 Directions
Are we
missing on
achieving the
Target
Mean??
OR
Is the
problem
around the
variations…?
?
Six Sigma Challenge…. Center Mean and/or Reduce variation
113
The Statistical Problem
LSL USL LSL USL
Target Target
Shift the process mean (technology case) Reduce the process variation (control case)
• The process variation is well under control • The process is capable of performing around
• The problem lies with the centering or the the mean target of the process
mean target of the process output • However the variation is beyond acceptable
• Indicates a need for a look at the limits
technology being used for the process • The technology is supportive but the control
mechanisms are not very effective
• Starting with a DMAIC….if need be a
DMADV/DFSS approach can also be taken • Look at process improvements
up
114
Process Capability
What is it & how does it help us?

• Process capability is a simple tool which helps us determine if a process, given its natural
variation, is capable of meeting the customer requirements or specifications
– Tells us if the process is capable?
– Helps to determine if there has been a change in the process &
– Also enables the six sigma team to determine the percent of the product / service not meeting the
customer requirement to enable Root Cause Analysis
• A stable process can be represented by a measure of its variation - six standard deviations
Comparing six standard deviations of the process variations to customer specifications
derives Process Capability
Cp : Process Capability
USL : Upper Specification Limit
Cp = USL - LSL LSL : Lower Specification Limit
6σ s : Estimated Standard Deviation
• While Cp looks at the spread of variation it DOES NOT look at how well the process is
centered to the target value
Stat > Quality Tools > Capability Analysis (Normal) Menu Pull-Down Sequence
in Minitab
115
Process Capability
Lower Spec Upper Spec

Limit Process Variation
Limit exceeds Specification
Cp<1 in this case. Process
is producing
Defectives
Process is just about

meeting the
Cp=1 specification but
Centering needs
attention from the six
sigma team
Process Variation well

Cp>1 under control. Keep a
check on the
centering of the
process
-3 -2 -1 +1 +2 +3
116
Other Indices
But we can definitely estimate the process capability in terms of centricity…...

• The indices of Cpl and Cpu (for single sided specification limits)
or
• & Cpk (for two sided specification limits) measure
- Process variation with respect to specifications
- Location of the process Average
Cpl = X – LSL Cpu = USL- X

3s 3s
• Cpk is considered a measure of process capability and is taken as the smaller of either Cpl or Cpu
can then be estimated
Cpk = min (Cpl , Cpu )
• Last but not the least Minitab helps us do all of it…
• Target a Cp greater than 1 and a Cpk nearer to 1
117
Control Impact Matrix
When we know the possible root causes……can we attack all??
The Difficult Piece… Target it now !!!

Use Change Why wait…???
HIGH
Management Strategy Just Do it

IMPACT
Check the effort vis a

vis the results
LOW
LOW HIGH
IN OUR CONTROL
118
Control Impact Matrix
• Classify all the causes that the group arrives at in the brainstorming session for
the Control and Impact Matrix
• Use your team’s process knowledge and business experience to list possible Xs
in a Control/Impact Matrix, then use process data to verify or disprove placement
of the Xs
Prioritization Steps
• Using the Control/Impact Matrix shown above, examine each X in light of two
questions:
– What is the impact of this X on our process?
– Is this X in our team’s control or out of our team’s control?
• With your team, place each X in the appropriate box on the matrix
• Use process data to verify or disprove your assertions
• The validated matrix is a guide used to addressing the Xs. Begin with the “High
Impact/In Our Control” category
• “Out of Our Control” Xs may require special solutions and CAP( Change
Accelerating Process) tools for successful sustainable solutions
119
Segmentation and Stratification
Segmentation
• A process used to divide a large group of data into smaller, logical categories for
analysis.
Segmentation is commonly used by us in our day to day business to understand
and interpret information
– Example : Segmentation of customers based on the cities
Stratification
• A process which uses summary metrics (central tendency, dispersion) to make
the decision about when to separate different processes for continued analysis
• Unlike segmentation, stratification involves the uses data rather than just
“information”. Values of the Central Tendency and Dispersion are used to stratify
the given data set.
– Example : Stratification of the customers based on the business volumes they provide
us
120
Segmentation Tools
Pie Charts
PERCENTAGE
• Can be used to represent the %
break up or the absolute
numbers
8%
12%
INPUT ERROR
• Use excel to develop the graph
OMISSION • Further break up of each slice
18%
PROCEDURE is also possible
62% OTHERS
Bar • Various combinations &

patterns of the Bar chart make
160 Charts it the most widely used tool
140
120
• Can depict process
No. of errors
100 Errors
80 commited performance in various pockets
60
40
Not updated as against the targets
20
0
• Multiple axes can help depict
comparative effects of factors
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Pareto Chart
April 1 – June 30
200 100
Number Of Units Investigated: 8,000
180 *f = frequency Cumulative
90 Summation Line
160 (Cum Sum line)
Cumulative Percentage
f* of D+B+F
80
140 f* of D+B
120 70
Frequency
f* of D
100 60
LEGEND
80 A: Typographical Errors
50
B: Incomplete Info
60 C: Sign not verified
40 D: Illegible
40 E: Process understanding
F: Poor Scan Quality
20 30
0 20
D B F A C E Other
Type of Defect 10
Approximately 80% of Defects from Defects D+B+F.
80 % of the effect on Y is caused by 20 % of the factors (X).
122
Pareto Chart
• A fully documented Pareto chart will include the “Cumulative Summation line” or
Cum Sum line, which depicts the running total of the frequency of each
subsequent bar (stratification level). The right- hand axis on the graph will show
the cumulative percent of defects. By reading the Cum Sum line against the
cumulative percentage, your team can determine which of the stratification levels
comprise 80% of total for the problem, and direct their attention to those levels
• The pareto chart is an important tool to further focus improvement efforts.

However, the top bars on the chart are not root causes and the team may need to
fully investigate each category in order to pinpoint the root cause. Like the “Five
Whys”, the pareto chart can be used in an iterative fashion in order to cascade
deeper into a process
123
Pareto Chart
• Pareto Chart can be used in the Define Phase to narrow-down the scope of the
project and focus on key-factors if historical data available
• Pareto Chart be used the Measure and Analyze Phase to analyzing the data
gathered to identify which are the 20 % Root-causes which cause 80 % of the
Effect
• Pareto Chart should not be used in series repeatedly on the same set of causes
as this will reduce the focus area to 80 % of 80 % or 80 %.
124
Process Mapping
Points to Remember:
• People who work on the process know it the best. Involve people who know
(focus on) the “As Is Process”
• Decide, Clarify and Agree upon Process Boundaries
• Use Group Activities like Brainstorming
– Use verb - noun format (e.g., Prepare contract not contracting )
– Don’t aim at the person taking care of the activity
• Respect the boundaries
• Don’t start “problem solving”
• Validate and refine before analyzing
125
Process Mapping
• Earlier in Define, you developed a high-level or SIPOC process map. By looking at

a process from a “big picture” perspective, you evaluated customer needs and
supplier inputs, and determined initial measurement objectives
• Now, you will look in more detail at the sub processes defined in the SIPOC map.
Sub process maps provide specifics on the process flow that you can then
analyze using several useful techniques. Choose what to sub process map by
determining which of the major steps in the SIPOC have the biggest impact on the
output (Ys). The block (or blocks) selected is the one on which you create a sub
process map – using it to understand how and why it impacts the output
– If the output is a time measure, which of the blocks consumes the largest portion of total
time, or which one has the most variation or delays?
– If the output is a cost measure, which of the blocks adds the most cost?
– If the output is a function measure, which block has the most errors or problems?
• Like working with a puzzle, you begin to assemble the pieces of an area on which
it makes sense to focus our efforts
126
Sub Process Mapping
• Core Process
• Business Process
• SIPOC
S C
Suppliers (ext.) Customers
(int.) Cust.
• Sub Process map Service Dept.
Tasks Procedures
127
Sub Process Mapping
• Here are some guidelines on building a sub process map. These are not absolute
– but they should help you avoid some of the pitfalls of process mapping:
– Focus on “As Is” – To find out why problems are occurring in a process, you need to
concentrate on how it’s working now
– Clarify Boundaries – If you’re working from a well-done high level map, this should be
easy. If not, you’ll need to clarify start and stop points
– Brainstorm Steps – It’s usually much easier to identify the steps before you try to build
the map
– Starting each step description with a verb (e.g., “Collate Orders”; “Review Credit Data”)
helps you focus on action in the process
– Who does the step is best left in parentheses (or left out) – you want to avoid equating a
person with the process step
128
Examples: Sub Process Mapping
 Process flowchart  Top Down Flow Chart  Deployment Or cross-

functional map/flowchart
Planning for a party
1.0 2.0 3.0
Dept 1 Dept 2 Dept
Determine Find Invite
Party Size Location Guests
Creates
1.1 2.1 3.1 List
Decide on Decide Complete
Budget Theme Invitations Is the Yes
Sends out
Writes Guest List the invitation
1.2 2.2 3.2 invitation covered
No
Decide on Select Send
No
Guest list Location Invitations
Yes Completes
List
Invitation task
completed
129
LEAN
• Muda means waste, where waste is any activity that does not add value. Reducing
or eliminating muda is, of course, one of the fundamental objectives of any
quality-oriented person.
– Defects
– Overproduction
– Inventories
– Unnecessary processing
– Unnecessary movement of people
– Unnecessary transport of goods
– Waiting
– Designing goods and services that don’e meet customers’ needs
• Muda is one of the '3Ms': muda, or waste, mura, meaning irregular, uneven or
inconsistent, and muri, meaning unreasonable or excessive strain.
130
Types of Waste
Type of waste Example

Complexity Unnecessary steps, excessive documentation, too may permission needed
Labor In efficient operations, excess head count
Overproduction Producing more than the customer demands. Producing before the customer needs it
Space Storage for inventory, parts awaiting disposition, parts awaiting rework and scrap storage.
Excessively wide aisles. Other wasted space
Energy Wasted power or human energy
Defects Repair, rework, repeated service, multiple calls to resolve problems
Materials Scrap, ordering more than is needed
Idle materials Material that just sits, inventory
Time Waste of time
Transportation Movement that adds no value
Safety Hazards Unsafe or accident-prone environments
131
Work Value Analysis
VALUE ADDED WORK

Can be recognized and classified as steps that are:
•Essential for the process • Data Input
•Change the form of the input in some way • Processing
•Are done right the first time
•The customer is willing to pay for them
NON VALUE ADDED WORK

Can be recognized and classified as steps that are • App waiting in
•Non Essential for the process the queue
•Do not Change the form of the input in some way
•Are Repetitive in nature • Rechecking
•The customer is NOT willing to pay for them
VALUE ENABLING WORK

Can be recognized and classified as steps that are
• Developmental
Training
•Essential for the process
•Even if the customer is not willing to pay for them
•Like trainings for employees
132
Work Value Analysis
• Value-enabling work is just a different type of nonvalue-added work. While this

terminology can be difficult, it does attest the perspective: “If the customer isn’t
willing to pay for it, it must be nonvalue-added – by definition.”
• Value-enabling may be tasks and steps that are still needed given today’s
condition. Consider what it would be like if things were perfect.
• Clues To Nonvalue-Added Work Symptoms:

– Your organization is grouped by functions
– To get work done, you need multiple approvals
– Your policies address only control issue
– REs are things in your process that are done more than one time (REdo, REcall,
REissue)
– REs usually cause you to loop back to an earlier point in your process
– REs consume time, add to the complexity, and use additional resources & costs the
organizations more in terms of $$s
133
Cycle Time Analysis
Movement of Output waiting

Processing Movement Processing
the goods to be shipped
5 hrs 2 hrs 4 hrs 4 hrs 4 hrs
The entire process is taking 1.5 days……can we reduce the TAT??

Experts say that a 66% of the time spent in a process can be targeted for reduction which is
usually spent in activities like:
• Movement
• Storage
• Waiting Time etc
We can by a simple Cycle time Analysis select and target such potential areas / activities
134
Cycle Time Constituents
Process Time + Delay Time = Total Cycle Time
Process 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 TOTAL % TOTAL % STEPS

Step
Time 1 120 15 120 3 180 7 1 120 5 10 15 90 15 120 2 120 5 8 957 100 %

Taken
Why should we
retain activities
which are NVA and
Where & Why are we What kind of contributing to total
spending the highest activities are TAT???
time?? these….
VA / NVA / VE??
135
Process Flow Analysis
Looking at the process together…..work flow & value analysis
Process Step 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Total % Total % Steps
Est. Avg. Time

(Mins) 1 120 15 120 3 180 7 1 120 5 10 15 90 15 120 2 120 5 8 957 100%
Value-Added 48 5%
Nonvalue-Added
- Internal Failure 180 18.80%
- External Failure
- Control/ Inspection 8 0.80%
- Delay 690 72.10%
- Prep/Set-Up
- Move 30 3.10%
- Value-Enabling 1 0.10%
Total 957 100%
136
Process Flow Analysis
• Cycle Time
– The total time from the point in which a customer requests a good or service until the good or service is
delivered to the customer. Cycle time includes process time and delay time
• Process Time
– The total time that a unit of work is having something done to it other than time due to delays or waiting.
It includes the time taken for value-added steps, internal failure, external failure, control, inspection,
preparation/set-up, and move
• Delay Time
– Total time in which a unit of work is waiting to have something done to it
• Linking value analysis with cycle time analysis creates a compelling business case for change
• Displaying this information on process maps emphasizes focus areas for improvement and begins building
data for Quantify the Opportunity
• Tips/Traps
– Don’t get stuck on deciding if a step is value-added or nonvalue-added
– Allow team to discuss it
– Consensus with 2/3’s majority vote
– Push team to make process map a true “as is.”
– The ratio for an average “as is” map is 20% value-added, 80% nonvalue-added
137
Hypothesis Testing
• What is Hypothesis Testing?

– When you suspect some of the Xs to cause differences (variation) on the Y, then that is
the ‘hypothesis’.
– Hypothesis Testing involves statistical validation of the Hypothesis.
– Examples :
 Two of the processors (X) have same efficiency (Y)
 There has been no increase in business volumes (Y) this year (X) compared to last
• When to test for Hypothesis ?
– Increases your confidence that probable Xs are statistically significant
– Used when you need to be certain that a statistical difference exists
138
Hypothesis Testing
What kind of differences are we trying to detect with the help of Hypothesis Testing?
• Continuous data:
– Differences in averages
– Differences in variation
– Differences in distribution “shape” of values
• Discrete data:
– Differences in proportions
139
Normal
Types of Hypothesis Testing Data
• There are different types of the Hypothesis Tests. The type of the test depends on
Statistical definition (Discrete or Continuous) of Xs & Y
• Each of these have a differential statistical treatment
• However the interpretation of results are common.
g r e s s i on
R e
t Test
2- Sa mple
ANOVA
est
tT Chi-Square Test
ple
a m
S
1-
140
Hypothesis Testing
• ANOVA – The simplest type of problem that is studied with the help of the
analysis of variance is one in which a single factor is under consideration and
this factor possesses several categories of levels, which could have a possible
effect on a variable of interest. Example, suppose an office manager is interested
in knowing which of the four brands of typewriters has to be purchased for the
office. The hypothesis tested is that all brands of the typewriters yield same
result.
• Regression – The regression analysis is basically useful for two primary

purposes:
– It can be used to predict the value of one variable when the value (s) of other related
variable(s) is (are) known; and
– It can be used to examine whether there is relationship between two or more variables
and it can further describe the strength of that relationship.
141
Hypothesis Testing
• One sample t test –

– Example: A state agro canning company uses an automatic machine to fill cans to a
specified weight. As the automatic machine has a tendency to drift out of adjustments,
the quality assurance department draws a random sample of 20 cans from each day’s
production and weighs these cans. The average weight of the sample can is found to be
485 g instead of the specified weight of 500 g and the sample standard deviation was
16.5 g. Would you specify, on the basis of the sample information, a readjustment for the
automatic machine?
• Two sample t test –

– Test concerned two populations and two samples. Is the average expenditure of the male
customer is equal to the average expenditure of the female customer. Sales of the
product before and after an advertising campaign.
142
Hypothesis Testing of Mean - Roadmap
Are No
Xs Regression Topics
Discrete?
Yes
Are
Ys No, Y Is Discrete
Continuous χ2 (Chi Square)
?
Yes, Y Is Continuous
• Parametric Comparing No, Multiple Groups

– F test and Barlett test for only 2 ANOVA
variance Groups ?
• Non Parametric
– Mann – Whitney for 2 Yes
sample t test
– Sign Test for 1 sample t
test Are
You No
– Moods Median for ANOVA
Comparing To 2 Sample t-Test
– Levene’s test for variance A Standard?
Yes
1 Sample t-Test
143
Minitab Directions
Stat>Basic Statistics>2 Sample t.

• There are two ways to make a two-group comparison, depending on how you
have recorded data in Minitab
– If each group is in its own column, select the Samples in different columns option
– If all the data is in one column and you have factor labels in a second column, select the
Samples in one column option
• While you can assume that the variation in the two groups is equal, it’s usually
more appropriate to leave the “Assume equal variances” box unchecked
Stat>Basic Statistics > 1-Sample t
Stat>ANOVA
• In Minitab, there are two ways to compare several groups:
– If you have all the response data in one column and the group identity labels in another
column, choose the One-way option
– If you have each group in its own column, choose the One-way (Unstacked) option
Stat > Tables > Chi-Square Test
144
T-test: An example
• The t-test is used when we wish to compare the average performance of two groups.
A brand Bulbs B brand Bulbs
• The statistical test examines whether the data supports or disputes the
• Null Hypothesis – no difference between the means of the two populations .
m1 = m2
• Alternate Hypothesis – that the means are “not equal” or when there is a difference between the two
population means
m1 ≠ m2
• when you don’t have a clear preference: “less than” or “greater than”
m1 < m2 or m1 > m2
145
One Sample t Test
146
One Sample t Test
147
Homogeneity of Variance
148
Homogeneity of Variance
149
Two sample t test
150
Two sample t test
151
ANNOVA
152
Chi Square Test – An example
• A process was producing 106 non defectives and 376 defectives per day. After improvement it was
performing at a level of 503 non defectives and 0 defectives. Do the two processes differ significantly?
Defectives
Non defectives 1 C2 C3 TOTAL
503 0 503
310.99 192.01
2 106 376 482

298.01 183.99
Total 609 376 985 Since p value is less than

0.05 we Reject Null
Chi-Sq =118.547 +192.008 + Hypothesis.
123.712 +200.374 = 634.640 The processes are
DF = 1, P-Value = 0.000 significantly different
• Thus the two processes are proved to be significantly different from each other on performing a Chi
Square test on the values for the before and after the change scenarios
153
Chi Square
154
Chi Square
155
Chi Square
156
Non
Types of Hypothesis Testing Normal
Data
i g n T e s t
Sample S
1- it n ey
Wh
Mann-
Kruskal-Wallis
Sq u a re
Chi
s t Mood's Median Test
Te
ns
Ru
• Above are test to be used when the data is not normal
157
Hypothesis Testing
• 1 Sample sign test –

– It is used to test whether the two different group data has changed by analyzing the
signs of the result.
• Run Test –
– It is used to test the sample for randomness.
158
Correlation & Regression
To narrow down upon the key variables (root causes) we next go on to a topic that
Helps us determine the NATURE & STRENGTH of a relationship between 2 variables
159
Correlation
A Correlation problem arises when the 6s team discusses whether there is any
relationship between a pair of variables
• A Scatter Diagram is a graphical tool for exploring the relationship between

predictor variables (Xs) and the response variable (Ys) (i.e., causes and the
effect). The equation under consideration stands at Y = f(x)
• This technique can be used to
– See whether the potential cause variable and the effect variable are related to one
another
• Range Of The Predictor Variable (Xs)

– The range is the difference between the largest and smallest values
– The range of the potential cause variable should be wide enough to show possible
relationships with the effect variable
• Irregularities In The Data Pattern

– Check whether the data pattern indicates possible problems in the data
160
Scatter Diagram
40
Cycle Time (Days) (Y) 35
30
25
20
15
10
5
1K 2K 3K 4K 5K 6K 7K 8K 9K 10K
Amount to be Sanctioned (X)
• A Scatter Diagram is an important graphical tool for exploring the relationship

between predictor variables (Xs) and the response variable (Ys) (i.e., causes and
the effect)
161
Some Scenarios
1 3 5
Strong Positive Strong Negative Correlation No Correlation

Correlation
2 4 6
Positive Correlation Negative Correlation Other Pattern
For all charts: Y = Participant satisfaction (scale: 1 – worst to 100 – best)

X = Trainer experience (# of hours)
162
Some Scenarios
Interpretation Of Patterns:
• Positive Relationship: X Increases/Y Increases
– Graphs 1 and 2 – as X increases, Y increases
– Graph 1 – Strong, positive relationship between X and Y. Not much scatter. Points form a
line with a positive slope
– Graph 2 – Weaker, positive relationship between X and Y. Scatter is wider. Points still
form a line with a positive slope
• Negative Relationship: X Increases/Y Decreases
– Graphs 2 and 3 – as X increases, Y decreases
– Graph 3 – strong negative relationship between X and Y. Not much scatter. Points form a
line with a negative slope
– Graph 4 – weaker negative relationship between X and Y. Scatter is wider
 As trainer experience increases, participant satisfaction decreases
• No Relationship: For any value of X, there are many values of Y
– Graph 5 – there is no relationship between X and Y. No one line best describes the data
• Non-Linear relationship – The relationship between X and Y is complex and
cannot be summarized with a straight line
– Graph 6 – Inverted U. This is not a linear relationship
163
Word of Caution
Growing Population
of ants
Growing Population of Human Beings
Lesson learnt : Correlation doesn’t imply causation
164
Regression
• The correlation coefficient r measures the strength of linear relationships; –1 ≤ r ≤

1
• When a relationship exists, the variables are said to be correlated

– Perfect negative relationship r = –1.0
– No linear correlation r= 0
– Perfect positive relationship r = +1.0
• r2 Measures the percent of variation in Y explained by the linear relationship of X

and Y
165
Regression
Y = mX + C
Line of
Best Fit
X
Regression Equation: Y = mX + C, where
C = Predicted Value Of Y When X = 0
m= Slope Of Line
Change in Y Per Unit Change in X
166
Forecasting and optimization are complex
Come on! It can‘t go

wrong every time...
167
Complete the project till choosing
hypothesis & Minitab session
168
Quantify the Opportunity
WHAT: Quantifying the Opportunity is all about the Six Sigma Team visiting the Benefits to
be accrued from the project. The index at this point of time would comprise of both Hard &
Soft gains (with a $ figure attached to hard gains) however no cost factors are involved at
this time
WHY: To provide the financial rationale of continuing the project, and to gauge the allowable
spending on the specific solution (s) that will be identified in Improve. It is a key milestone
to be covered before the Analyze tollgate
WHEN: Usually after the verification of the vital few root causes
Quantify The Opportunity Cost/Benefit Analysis

● Done in the Analyze phase ● Done in the Improve stage
● It is not for a specific ● Calculated for a specific
solution solution
● Considers only Gross ● Talks about Net gains
numbers
● Scope: A portion of the
● Covers the entire process
as the scope process
169
•
•
•
•
•
•
•
170
Improve
Fix the process (es)
Improve
GENERATE/SELECT SOLUTIONS
Brainstorming
TRIZ
DOE
Criteria Matrix REFINE SOLUTION
NGT FMEA
Idea Screening Tools
Error Proofing
TEST SOLUTION
Pilot planning
Verification of Results
JUSTIFY SOLUTION
Cost Benefit Analysis
Deliverables: Solution Design Developed Solution Tested on a small Scale Cost Benefit
Analysis
172
Improve - Steps
Creative Analytical
Approach Approach
Brainstorming Data
Analysis
Select Best Idea (DOE)
Filter
Refine the Idea
Error
Proofing /
FMEA
Test the
new Idea
Pilot
Justify $
173
Design of Experiments
We will understand the following:

• Understand the strategy behind Design of Experiments (DOE)
• Create a design matrix
• Code factors
• Understand the limitations of OFAT experiments
• Interpret interactions
174
Why Learn about DOE?
Properly designed experiments will improve

• Efficiency in gathering information
– Planning
– Resources
• Predictive knowledge of the process
• Ability to optimize process
– Response
– Control input costs
• Capability of meeting customer CTQs
175
What is DOE?
A DOE is a planned set of tests on the response variable(s) (KPOVs) with one or
more inputs (factors) (PIVs) each at two or more settings (levels) which will:
• Determine if any factor is significant
• Define prediction equations
• Allow efficient optimization
• Direct activity to rapid process improvements
• Create significant events for analysis
176
DOE Terminology
• Response (Y, KPOV): the process output linked to the customer CTQ
• Factor (X, PIV): uncontrolled or controlled variable whose influence is being
studied
• Level: setting of a factor (+, -, 1, -1, hi, lo, alpha, numeric)
• Treatment Combination (run): setting of all factors to obtain a response
• Replicate: number of times a treatment combination is run (usually randomized)
• Repeat: non-randomized replicate
• Inference Space: operating range of factors under study
177
DOE Objectives
• Learning the most from as few runs as possible; efficiency is the objective of DOE
• Identifying which factors affect mean, variation, both or none
• Screening a large number of factors down to the vital few
• Modeling the process with a prediction equation:
• Optimizing the factor levels for desired response
• Validating the results through confirmation
178
Strategy of Experimentation
Planning Phase Execution Phase

• Define the problem • Collect data
• Set the objective • Analyze data
• Select the response (s), Ys • Validate results
• Select the factors (s), Xs • Evaluate conclusions
• Select the factor levels • Revise SOPs
• Select the DOE design • Train affected workforce
• Determine sample size
• Document results
• Run the experiment
• Consider next experiment
179
Response Relationship to Other Tools
Process Map
Inputs Outputs
Power On
Projector has bright
Bulb life light
Projector
Instructor Training Projector is quiet
Computer Interface Colors correct Cause & Effect Matrix
Rating of
Importance to 8 7 8
Cause & Effect Diagram for Bright Light Customer
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
EnvironmentMethod Machine
Color Correct
Bright Light
Bulb Process
Quiet
Room Inputs Total
Brightness Instructions
Computer Settings 1 Power on 9 3 2 119
Low Bulb 2
3
Bulb Life 8
Instructor 1
1
1
3
1
95
23
Brightness 4 Computer 2 1 9 95
5
Instructor 6
Light Meter 7
Power On
Measurement
Person
180
Factor Relationship to Other Tools
Process Map
Inputs Outputs
Power On
Projector has bright
Bulb life light
Projector
Instructor Training Projector is quiet
Computer Interface Colors correct Cause & Effect Matrix
Rating of
Importance to 8 7 8
Cause & Effect Diagram for Bright Light
Customer
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Color Correct
Environment
Bright Light
Method Machine
Process
Quiet
Bulb Inputs Total
Room
Brightness Instructions 1
2
Power on9 3 2 119
Bulb Life8 1 3 95
Computer Settings 3 Instructor
1 1 1 23
4 Computer 2 1 9 95
Low Bulb 5
6
Brightness 7
Instructor
Light Meter
Power On
Measurement
Person
181
Experimental Design Considerations
Experimental Experimental Design Types

Objective
Many Less Less

OFAT (One Factor at a Time)
K
Screen Fractional Designs
K N
PI 2k Full Factorial O
V’ W C
s L O
2k Full Factorial ( w center
points/replication) E S
Optimize D T
G
Full Factorial (replication)
E
Model
RSM (Response Surface
Method)
Few More More
182
Factors and the Process
Y:
X1 Price
Business Accounts
X2 PO Receivable
X3 Terms Process Hold
X1 Temp Y:
X2 Press Manufacturing Scrap
X3 Time Process Reduction
DOE can be applied to both business and industrial processes
183
Coding Three Factors
Low-1 High+1
Press = 2 Press = 10
Temp = 10 Temp = 125
Resin = 56 Resin = 3560
+1
temp
+1
e sin
r
Coding convention often uses
“+” for high and “-” for low
-1
-1 press +1
184
TRIZ – Theory of Inventive Problem Solving
• A theory of problem solving based on the recognition of the power of

psychological inertia and the importance of having a process to move problem
solving activities beyond this inertia by identifying contradictions (barriers to an
ideal solution) and providing specific tools and strategies for eliminating them
• Genrikh Altshuller (developer of TRIZ) screened thousands of patents looking for
inventive problems and how they were solved. Only 40,000 had inventive
solutions; the rest were straightforward improvements.
• Altshuller categorized these patents by identifying the problem-solving process
that had been used repeatedly. He found that the problems had been solved using
one of forty inventive principles.
185
TRIZ – Key Concepts
Overcoming Psychological Inertia

• Psychological Inertia is the sum total of an
individual’s personal bias, previous experience
and technological knowledge. When
challenged with a problem, the solution path
will be constrained by the individual’s
psychological inertia. Psychological inertia
predisposes not only the solution path, but the
types of solutions as well. Psychological
inertia defines the boundaries of the solution
space; if the ideal solution for a problem
demands “out-of-the-box” thinking,
psychological inertia confines the thought
process to the conventional box.
186
• Inventive Principles are rules for system transformations. Each principle is

intended to eliminate a single contradiction or several contradictions. Also, these
principles can be used simply to stimulate, or initiate, the thought process to
create the ideal solution to a problem. They can be used for inspiration in
conceptual design, directly utilized in the case-based design or used in various
forms of analogical reasoning.
Two of the forty principles are listed in next page with accompanying service examples.
Apply Selected Inventive Principles To Your Contradiction/

Problem To Develop Innovative Solutions
187
188
Brainstorming Techniques
• Structured Brainstorming
– Smooth Flow of Ideas
– Everyone has an opportunity to express opinions
– Efficient process in terms of idea generation
– Less Creative in approach
• Unstructured Brainstorming
– Smooth
– Random Flow of Ideas
– All opinions may not be captured
– Lesser number of ideas generated
– Effective process for creative ideas
189
• Structured Brainstorming: This is a process in which the ideas are generated in a

systematic method by moving from one person to another and obtaining an idea.
The person who does not wish to provide an idea, passes. The process is
continued until each participant passes and the facilitator determines no fresh
ideas are being generated. As with all forms of brainstorming, the ideas are then
taken up for discussion. At the end discard any ideas that are similar and debate
on each idea to come up with the finalized list of possible solutions
• Unstructured Brainstorming: In this form of brainstorming, ideas are generated

randomly and there is no need to pass. The solutions are discussed freely and
can be proposed at any time. This type of brainstorming process is effective when
the representation of each of the diverse groups involved in the discussion is
large. However, the facilitator should be careful that even in this randomized
discussion with large representations, ideas may not be captured completely
190
Brainstorming Principles
• “Must be” for all Brainstorming forms

– Allow Free Flow of Ideas
– Create Heterogeneous Groups
– Focus on Critical Xs & CTQs
– Avoid Large Groups (6 - 10 optimum)
– Prevent Biases (Group/Function/Subject)
– Manage Time
– Scribe all Details
– Use Voting Techniques
191
Channeling / Anti Solution
Channeling Anti Solution
• Structured approach to brainstorm • Structured approach to brainstorm

on specific category of solutions on the opposite of the objectives of
available to the team the discussion
192
Analogy / Brain writing
Analogy Brain Writing
• Brainstorm on ideas on related • Build on ideas written on a sheet

topic to unblock the thought of paper randomly distributed
process amidst the group
193
• Channeling: This form of brainstorming entails channeling of thoughts of the participants

similar to the discussion in Fishbone diagram. The discussion revolves on specific
stream/section of solution. E.g While discussion on methods to improve the sales of soaps,
potential solutions can be channeled into: Improvements related to the packaging, fragrance,
cutting of costs or distribution system for the product
• Antisolution: Here the objective of the team is reversed to exactly the opposite of what is to
be determined. E.g. In an effort to improve the training program, the team can debate about
the ways in which the training program can be worsened. The solutions are opposite of what
is determined during the discussion
• Analogy: Analogy form of brainstorming encompasses a discussion on a process/product

that is similar to the one which is being improved.e.g. Instead of discussing on “What are
ways to improve the productivity of call center associates for an insurance customer service
call center, the team can discuss opinions on productivity of associates in the customer
service call center for Automobile Leasing”. Make associations at the end of the discussion
• Brain writing: Written ideas are exchanged in this process. Each person who receives a
written idea tries to expand on it or adds a totally new idea to it. The pieces of paper are
rotated & a collections of ideas or solutions are then debated & prioritized. This is used when
the team members are unknown to each other
194
Solution Selection
Pay Off Matrix Screening against

H “Must Be”
Benefits
Compliance, Policies &

regulations
Customer CTQs
Business CTQs
L Effort H
Solutions for further
discussions
N/3 Voting Criteria Based Matrix

Assign # of
Combine all similar Establish Criteria Wt. Soln. 1 Soln. 2
Votes
choices with
Generate/Update consensus • Ease of Use
List of Solutions • Inter site availability
• Preparation of Charts
Rationalize/Justify/
• Information Real time
Reject solutions
• Auto escalation of
unresolved issues
• Filters & Regulated
Allow members Access
Tally Votes
to choose 1/3 of the Total Score:
for each
list as choices
choice
195
Solution Selection
• Pay-off Matrix: After the possible solutions are generated, they can be assigned
to different quadrants of the pay off matrix. The ideas which are low on benefits,
are rejected. The discussion is then focused on the high effort/high benefits and
these are rationalized for implementation. Some of the solutions in this quadrant
are so prohibitively expensive that they can be eliminated without further
analysis. Caution needs to be maintained when eliminating potential solutions
from this quadrant
• Screening against “Must be” criteria: Company policies, Local laws & Social
considerations are extremely important before proceeding further on any
solution. Finally, the extent to which the customer CTQs of the project are
satisfied is a key consideration for selection (Use Kano model to evaluate
expected extent of satisfaction generated)
• N/3 Voting: The key consideration in this form is that all rejected solutions should
be justified
196
Criteria Based Matrix
Where to use CBM

• More than a few criteria for solution selection
• Solutions scoring differently under each criteria
• The weight for each criteria differs
How to use CBM

• Identify Criteria and assign weightage
• The Team members to give votes to each idea
• The votes are then multiplied with the weights of the criteria established for
selection
• The total scores obtained at the bottom of the solution are used to select the
same
197
N G T: Nominal Group Technique
What is the best method to reduce cost per transaction?

Member 1 Member 2 Member 3 Totals
Solutions
• Simplify Application process 6 4 6 16

• Automation 1 1 1 3
• Employ Six Sigma 3 3 2 8
• Consolidate sites 5 6 4 15
• Implement Web Services 4 5 3 12
• Reduce Workforce 2 2 5 9
Simplify Application process & consolidate Sites
198
Error Proofing
Error Free Designs or Processes

• Eliminate the Possibility of setting the Xs beyond the limits
• Warns Operators before the Xs move to the outside limit so that the preventive
action can be taken
• Can also be used in conjunction with the Risk Management or SPC
• The opportunity for error needs to be minimized or eliminated
Get it right during process design…!
199
FMEA
• Definition
– Failure Mode & Effects Analysis is a tool to identify the relevant importance of possible
failure of the process/solution & establish clear mitigation strategy associated with the
risks
• Principle of FMEA
– Impact of any failure on a process is not only severity of the failure but also the
frequency of occurrence & the ability of the control mechanism to detect the failure
A Team activity with the subject matter experts…!
200
FMEA
• Objective:
– Addressing rational concerns that have significant affect on the performance of the
proposed solution
– To evolve a consensus on the recommended corrective actions and procedures to
follow.
• Suggestions for completion of the activity in time:

– It would be best to address concerns from a process perspective rather than have a
business contingency plan activity which would affect the entire business (e.g
Earthquake, Fires, Natural calamities, Geo-political exigencies, Power back ups etc.).
– Each individual SME/functional expert would position the argument. More often than not
the suggestions/action plans would come from him/her or through a judicious
discussion within the group.
– The process owner takes the final call on the impact except when issue is related to a
Legal or a Compliance issue.
201
FMEA
• FMEA is carried out on the Process/Product being introduced or redesigned

• Calculate the Risk Priority Number by multiplying the scores associated with
Severity, Occurrence & Detection-revisit frequently to update
• FMEA is a live document
Process Potential Potential S O D R

Step/Part Failure Failure E Potential C Current E P
Number Mode Effects V Causes C Controls T N
Actions S O D R
Recom Target Actions E C E P
mended Resp. Date Taken V C T N
202
Calculating RPN
RPN = Severity x Occurrence x Detection
Severity Scale
Rating Criteria – A Failure Could: More the
Bad 10
Injure a customer or employee severity,
9 Be illegal higher is
8
Render product or service unfit for use the
7
Cause extreme customer dissatisfaction rating
6 Result in partial malfunction
5 Cause a loss of performance which

is likely to result in a complaint
4 Cause minor performance loss
3 Cause a minor nuisance, but be

overcome with no performance loss
2 Be unnoticed and have only minor
effect on performance
1 Be unnoticed and not affect the
Good
performance
203
Calculating RPN

Occurrence Scale
More
Rating Time Period Probability
Bad often it
10 More than once per day > 30%
occurs,
9 Once every 3-4 days ≤ 30%
higher is
8 Once per week ≤ 5%
the rating
7 Once per month ≤ 1%
6 Once every 3 months ≤ .03%
5 Once every 6 months ≤ 1 Per 10,000
4 Once per year ≤ 6 Per 100,000
3 Once every 1-3 years ≤ 6 Per Million
2 Once every 3-6 years ≤ 3 Per 10 Million
Good 1 Once every 6-100 years ≤ 2 Per Billion
204
Calculating RPN

Detection Scale
Bad
Rating Definition
Lower the
10 Defect caused by failure is not detectable

ability
9 Occasional units are checked for defect to detect,

8 Units are systematically sampled and inspected higher
7 All units are manually inspected is the
6 Units are manually inspected with mistake-proofing rating
modifications
5 Process is monitored (SPC) and manually inspected
4 SPC is used with an immediate reaction to out-of-

control conditions
3 SPC as above with 100% inspection surrounding out -
Good of-control conditions
2 All units are automatically inspected
1 Defect is obvious and can be kept from

affecting the
customer
205
Testing for Solutions
Why Test Solutions

• Confirm to potential solution
• Obtain feedback and buy-in for proposal
• Opportunity for refining solution
How to Test Solution

• Small scale experimentation-Piloting
• Modeling-Physical Models
• Simulation- Computer models
206
Testing Essentials
• Create a Data collection plan & monitor activities for Data consistency & Stability
• Verify that the process has improved-Process capability, Hypothesis Testing for
evaluating Statistical significance of the old & the improved process
Why collect What to How to Ensure

Consistency&
Data? Collect ? Collect? Stability
Ensure robust Measurement plan for testing the solution
207
Justify Solution
• Tangible Benefits • Intangible Benefits

– Savings – Customer Retention
– Incremental Revenue – Improved VOE/VOC/VOS
– Interest Cost & Income – Ease of Work
– Cash Flow – Better Governance
– Reduced Workforce
Prepare Net Financial Gains & supplement with Intangible gains and Obtain Business &
Finance Leader approvals before proceeding
208
CBA
Hard Gains
Cost Heads Vendor In House Training
Trainer Cost 250,000 0 Soft Gains
T& L 30,000 0
Q Team Support 4,444 11,111 • Trainings customized to
Facilities
Equipment
20,000
1,000
20,000
1,000
the need of the employees
Stationary & Manuals
GB Examination
15,000
50,000
10,000
2,222
• Calendar & Duration of
Total Cost 370,444 44,333 the training according to
Organizations need
Estimated annual cost
Cost with QAI Cost with Quality Team
Per Training 370,444 44,333
12 Training per year 4,445,333 532,000
Cost of creating the training manual

Average per
Man Days Spent day cost Total Cost incurred Benefits of Training
30 2,222 66,667 In-house
Savings per year
vs.
3,846,667 Employing a Vendor
Assumptions
1. Hypothetical Costs assumed
2. Recurring cost of upgrading the content is INR 66, 667
* All Figures in INR
209
•
•
•
•
•
•
•
210
Control
Sustaining the benefits
Control
1 PROCESS CONTROL PLAN

Process Management Chart
Process Documentation
Selection of Control Charts
Interpreting Control Charts
Response Plan
2 IMPLEMENT SOLUTION
Stakeholder Analysis
Implementation elements
3 CLOSE PROJECT
Documentation
Communication of Learning
Project Closure
Deliverables: Process Control Developed Fully Implemented Solution Communication of Project
212
Why Control?
Improvements
Process Control
No Process Control
Time
• To hold the gains of the DMAIC project there by ensuring that the efforts of
the project team are not written off
213
Why Control?
• Process Control is essential to prevent the loss of gains over a period of

time
• Detect the out of control state of processes & determine the appropriate
actions
• Control System incorporates Risk Management, SPC, Measurement & Audit
Plans, Response plans, Documentation & Ownership
214
What To Control?
Input Output
Measures Measures
(Xs)
Process Measures
Monitoring
Points
• At the barest minimum, measure CTQs

• Strive to measure the critical Xs to provide chances to make corrections
• Install the appropriate data collection plan
• Audit appropriately
• Early warning system prevent $$ Impact ( Rework reduction )
215
Process Management System
New special cause variations identified • Deployment flow

chart
Documentation What, Who, Where of the
• Activity Details
& process
Standardization
• Key Measures
• Standards
What, Who, When, How of
Monitoring data collection & • Measurement &
Process
measurements
•Procedure for
Response What, Who, When, How of adjustment
plan action upon process •Containment

failure • Procedure for
Ongoing Auditing improvement
216
Process Management Charts
Documentation Monitoring Response Plan

The
The Plan
Plan For
For Doing
Doing The Work Checking
CheckingThe
TheWork
Work The
TheResponse
ResponseTo
ToSpecial
SpecialCauses
Causes
Key Process Method For Procedure Procedure

Deployment Detail On And Output Monitoring Recording For Process For System
Flowchart Key Tasks Standards Containment
Measures Data Adjustment Improvement
217
Documentation
• Documentation process is an activity that ensures that the knowledge

gained by the project team is:
– Implemented successfully
– Retained by the business
– Used to standardize the business processes
– Future resources can be trained easily
– Improvements can be shared and translated across
– Institutionalized
Documentation Levels
Process Flowcharts Procedures Checklist
Management
System
Increasing level of detail
Core Process Sub Process Micro Process
218
SPC
• Control Charts
– Monitor Changes in the Xs & detect changes that are due to Special Causes
– Used when the Xs cannot be mistake proofed or need to be controlled for inherent
variations
219
Control Charts
Value/Measurement Axis
Common
Upper Control Limit
Cause/Random Variation
6000
3.0SL=5587
5000
4000
X=4198 Average
3000
-3.0SL=2810
2000 1
Subgroup 0 10 20 30 40
Week 10/22/00 12/31/00 3/11/01 5/20/01
Special Cause Lower Control Limit

Variation Time/Sequence Axis
• Select Process, Measures to be charted

• Establish Data Collection & sampling plan
• Calculate the Statistics
• Plot Control Charts(2 Charts for Continuous Data & 1 for Discrete Data)
220
Interpretation of Variation
How you interpret variation . . .

Common Causes Special Causes
True Variation Type…
Focus on systematic Mistake 1

Common
process change Tampering
Causes
(increases variation)
Mistake 2 Investigate
Special special causes
Under-reacting
Causes for possible
(missed prevention)
quick-fixes
221
Selecting Control Charts
Continuous Discrete
Type Of Data
?
Need To Count
Type Of
Detect Classification (defects)
Discrete
Small (defectives)
Data
Shifts ?
?
Constant Constant
No Yes Yes No
Sample Opportunity
Rational Size ?
Individual Subgroups ?
Individuals Measurements Sample
Or Size
Subgroups <10
?
Yes No
Individuals
and Moving Range X and R X and S p-Chart np Chart c-Chart u-Chart
Chart Chart Chart
222
Work out session – Q & A
223
Selecting Control Charts
• A team from Marketing is tracking response rates (yes, no) on telemarketing calls. Each day
they randomly sample 100 responses from their outgoing calls. The number of positive
responses is plotted on the chart.
• The technical support area is monitoring average response time on help requests. Each
hour 5 calls are sampled.
• A team is monitoring the number of applications received each day with incomplete fields.
All applications are being audited. Each day 200-250 applications are received.
• A team is monitoring the cycle time for the underwriters’ loan decisions. The data comes in
slowly; that is, one loan is completed daily.
• A team is tracking the number of fields left blank on an application. Each day a sample of
100 applications is audited.
• Another team is doing the same thing as the team in example 5 (counting the number of
fields left blank on an application), only they are looking at all the applications that come in
daily. Each day 50-100 applications are turned in.
• The team is tracking the number of abandoned calls to a customer call center in a shift.
Each shift takes from 200-400 calls.
224
Types of Control Charts
p-Chart np-Chart
Rejected Items based different Sample sizes Rejected Items based on constant Sample Size
30 1
3.0SL=0.3324
0.3
Proportion Defective
Number Defectives
3.0SL=20.90
20
0.2
P=0.1685
NP=12.00
0.1 10
-3.0SL=0.004728 -3.0SL=3.101
0.0
0
0 10 20 0 10 20
Sample Number Sample Number
u-Chart
Number of Blemishes per unit sq. m of
c-Chart
Defects reported on 100 sq. m of Artificial Leather Artificial Leather
8 0.08
3.0SL=7.677 3.0SL=0.07520
Number of Defect/sq. m
Number of Defects Reported
0.07
7
0.06
6
0.05
5
0.04
4
0.03
3 U=0.02705
C=2.725
0.02
2
0.01
1
0.00 -3.0SL=0.00E+00
0 -3.0SL=0.00E+00
0 10 20 30 40
0 10 20 30 40
Sample Number
Sample Number
225
Types of Control Charts
I-MR Chart for each bag of raw material.

Individuals Chats for the each bag of raw material 1050 11
Weight of each bag

1
1
1050 3.0SL=1011
1 11
1 950
X=936.9
3.0SL=1011
Weight of Each bag
-3.0SL=862.8
850 1 1
950 Subgroup 0 10 20 30 40 50
X=936.9
1
100
3.0SL=90.96
Moving Range
-3.0SL=862.8 50
850 1 1
R=27.84
0 10 20 30 40 50 0 -3.0SL=0.00E+00
Bags received during the day
Xbar/R Chart for size of steel Xbar/S Chart for size of a steel
rod(requirement 600+/-3mm) Rod(Specification 600+-3mm)
Mean of Subgroups of
1 1 1
Samples Collected
603 1 602 3.0SL=601.9
Subgroupl Mean
3.0SL=602.4
602 601
601 X=600.2
600
600 X=600.2
599 599
-3.0SL=598.6
598 -3.0SL=598.1
598
Subgroup 0 10 20 Subgroup 0 10 20
9 3 3.0SL=2.909
8 3.0SL= 7.866
7
Subgroups of
6
Range within
2
5 Subgroup S=1.695
Deviation
Standard
individual
Samples
4 R=3.720
3 1
2
1 -3.0SL=0.4808
0 -3.0SL=0.00E+00 0
226
Examples
• Ex1: You work at an automobile engine assembly plant. One of the parts, a
camshaft, must be 600 mm +2 mm long to meet engineering specifications. There
has been a chronic problem with camshaft length being out of specification,
which causes poor-fitting assemblies, resulting in high scrap and rework rates.
Your supervisor wants to run control chart to monitor this characteristic, so for a
month, you collect a total of 100 observations (20 samples of 5 camshafts each)
from all the camshafts used at the plant, and 100 observations from each of your
suppliers
• Ex2: You are conducting a study on the blood glucose levels of 9 patients who
are on strict diets and exercise routines. To monitor the mean and standard
deviation of the blood glucose levels of your patients, create a control chart. You
take a blood glucose reading every day for each patient for 20 days
• Ex3: As the distribution manager at a limestone quarry, you want to monitor the
weight
(in pounds) and variation in the 45 batches of limestone that are shipped weekly
to an important client. Each batch should weigh approximately 930 pounds
227
Examples
• Ex4: Suppose you work in a plant that manufactures picture tubes for televisions.
For each lot, you pull some of the tubes and do a visual inspection. If a tube has
scratches on the inside, you reject it. If a lot has too many rejects, you do a 100%
inspection on that lot
• Ex5: You work in a toy manufacturing company and your job is to inspect the
number of defective bicycle tires. You inspect 200 samples in each lot and then
decide to create a control chart to monitor the number of defectives. To make the
chart easier to present at the next staff meeting, you decide to split the chart by
every 10 inspection lots
• Ex6: Suppose you work for a linen manufacturer. Each 100 square yards of fabric
can contain a certain number of blemishes before it is rejected. For quality
purposes, you want to track the number of blemishes per 100 square yards over a
period of several days, to see if your process is behaving predictably
228
Examples
• Ex7: As production manager of a toy manufacturing company, you want

to monitor the number of defects per unit of motorized toy cars. You
inspect 20 units of toys and create a control chart to examine the
number of defects in each unit of toys
229
Implementation
• Elements of Good Implementation planning

– Objectives
– Incorporation of Pilot learning
– Resources & Time Frame
– Influence Strategy
– Control plan
– Documentation
230
Implementation Strategy
3 2 - P o r t P a tc h P a n e l
3 2-P o rt
P a tc h P a n e l
W o rk gro u p
H ub
S W - W i n g , 4 t h - F lr .
C a r d io lo g y N u r s e S t a t io n
W o rk gro u p
H ub
S E - W in g , 8 t h - F lr .
O B / G Y N N u r s e S t a t io n
C is c o 7 5 0 7
M u lt i p r o t o c o l
R o u te r
C a b l e tr o n M M A C
P lu s C h a s s is
W o rk gro u p
H ub
F ib e r P a tc h C o r d s S E - W in g , 3 r d - F l r .
T I - C A T /M R I N u r s e S t a t i o n
6 4-P o rt
P a tc h P a n e l
W o rk gro u p
H ub
N W - W in g , B s m t . C o m p u te r R o o m S E - W in g , G n d . - F l r .
E R N u r s e S t a t io n
T IT L E D E S C R IP T IO N
S C A LE NT S DA TE 1 2 /1 5 / 9 6
A V i s io s a m p l e d r a w i n g f i le s h o w i n g t h e a p p l ic a t io n o f s h a p e s fr o m v a r i o u s
S a m p le L o g i c a l D ia g r a m N e t w o r k E q u ip m e n t s t e n c i ls in c o n s t r u c t in g a lo g i c a l n e t w o r k d ia g r a m . R E V IS E D
DRAW N
B Y JL
Quality of solution X Acceptance of Solution
Effectiveness of Implemented Solution
231
Acceptance Strategy
Key constituents Map Stakeholders Analysis

Stakeholder Analysis
Project Impact Profile Names Strongly Moderately Neutral Moderately Strongly Additional Pertinent Information
Against Against Supportive Supportive
80
60 70
Customers X
380 Associates
90 X
50 50 Mid
Management
X
20 20
40 30
SLT X
HR Finance Operations Unit 1 Unit 2
Quality
Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 SWAT
Team
X
Identify Stake holders to be addressed first Identify Stakeholder Support Profile

Influence Strategy TPC Analysis
Issue/Concern Identify Wins Strategy Cause of
Examples Ranking
resistance
Stakeholder 1 Data Technical
Demonstrate
Stakeholder 2 Political
Stakeholder 3 Demand Cultural
Determine Influence Strategy Identify Causes for Stakeholder Resistance

232
Acceptance Strategy
• Key Constituents Map: This tool is used for mapping out the size of the
stakeholder team that would be affected by the change that is going to be
implemented. The tool helps the team identify what should be the right
composition of the implementation team (proportional to the key constituents
map sections). It also helps determine (based on size) the stakeholder that needs
to be addressed first
• Stakeholder Analysis: Stakeholder analysis helps provide an insight on the extent

of support/resistance that should be expected by the project team during the
implementation of the project. It also establishes the requirements for successful
implementation for the project team. Using this information the team would be
able to determine which key stakeholders need to be influenced or sought
support from during the implementation
233
Implement Solution
3 2 -P o r t P a tc h P a n e l
3 2 - P o rt
P a tc h P a n e l
W o r k g ro u p
H ub
S W - W i n g , 4 th - F lr .
C a r d io lo g y N u r s e S t a tio n
W o r k g ro u p
H ub
S E - W i n g , 8 th - F lr .
O B / G Y N N u rs e S ta tio n
C is c o 7 5 0 7
M u ltip ro t o c o l
R o u te r
C a b le tro n M M A C
P l u s C h a s s is
W o r k g ro u p
H ub
F ib e r P a t c h C o r d s S E - W in g , 3 r d - F l r .
T I - C A T /M R I N u r s e S ta t io n
6 4 - P o rt
P a tc h P a n e l
W o r k g ro u p
H ub
N W - W in g , B s m t . C o m p u t e r R o o m S E - W in g , G n d .- F lr .
E R N u r s e S ta tio n
T IT L E D E S C R IP T IO N SC A LE N TS D ATE 1 2 /1 5 /9 6
A V i s io s a m p l e d r a w i n g f i le s h o w i n g t h e a p p l i c a t i o n o f s h a p e s f r o m v a r i o u s
S a m p l e L o g ic a l D i a g r a m N e t w o r k E q u i p m e n t s t e n c i l s i n c o n s t r u c t in g a l o g i c a l n e t w o r k d i a g r a m . R E V IS E D
D R AW N
B Y JL
Issue/Concern Identify Wins Strategy
Stakeholder 1 Data
Demonstrate
Stakeholder 2
Stakeholder 3 Demand
+
Project management
tools Successful
Implementation
234
Project Closure
• Essentials of Project Closure

– Document & Communicate Results
– Recommend Translation Opportunities
– Evaluate Team success-Results, Process & Relationships
– Celebrate
– Disband Project Team
235
Summary
236
Presenter Details:
237

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Six Sigma Green Belt Training Program

Voice Of Voice Of Voice Of

The Employee The Customer The Shareholder

Key output metrics that are

Strong Linkage between Projects & Big Ys is Important

Translate to needs statement

• List your customers • Review existing VOC data

Customers Requirements determines quantifiable Process Metrics “CTQ’

Translate to needs statement

• Organize all customer data

Flexible Easy Personal Advice/

Low Interest Easy Will Come To Knowledgeable Knows About

Verbatim VOC High-Level Needs

Gather verbatim VOC Translate to needs

Customers Requirements determines quantifiable Process Metrics “CTQ’

Verbatim “ You take too much time in getting back to me!”

Specific - Quick Response

What gets measured gets managed… ensure measurable CTQs

EMPLOYEES PROJECT CTQ COST & COMPETITORS

• Kano Model / Theory:

• Financials help prioritize projects

Projects can focus on Hard Gains or Soft gains

1 DETERMINE THE PROJECT CTQs

Process Operational Definition

Project Name Improving Accuracy of Payments Processing

Roles & Responsibilities

Estimated Benefits( Enter details for columns whichever are applicable)

What is the improvement Key Milestones /

Problem / Goal Resources /

• What process will the team focus on?

“The Business Process”

• Supplier: The provider of inputs to your process

Core Process Credit

Subprocesses Exports Imports

Subprocesses Negotiation Payments Collections

Inputs Process Outputs

• Be clearly bound with defined goals

• Identify project through business theme and personal issue

Establish Data collection

Deliverables: Data Collection Plan MSA Results Data Plots

Based on SIPOC Based on Focus Based on

INPUT PROCESS OUTPUT

Garbage in Garbage out How good is my Accurate? Timely??

Y = f(X1, X2, X3…………………. Xn) Productive??

Output Y is a function of various Inputs and Process Steps

Measures can be classified as Input, Process or Output Measures

• Where should parameters for measuring be focused?

Measures for looking at Process Performance

Customer Focussed Process Focussed

The degree to which customer The amount of resources allocated in

Continuum of Data Types

Binary Ordered Count

1. Percent defective parts in hourly production

• Some more examples:

• Following criteria should be kept in mind while choosing Measures

High Level Prompters

Handwriting not legible To many deals held

How do we carry it out?

The Identify Formulate Develop Pilot

Word of Caution : Wrong Data Leads to Wrong Conclusions

• What is Sampling all about??

• Some points to consider while collecting data

• When not to sample?