SIX SIGMA FOUNDATION NOTEBOOK

I. Introduction
1. What is Six sigma?
- Six Sigma is a project-based approach for improving effectiveness
and efficiency.  
 Disciplined,
 Customer-focused,  
 Data-driven
- Approach for improving the performance of processes, products, or
services
- As a philosophy:
 Strives for perfection in achieving effectiveness and efficiency  in
meeting customer and business requirements
 Proactive and prevention based,  instead of reactive and detection
based.
- As a performance metric:
 Level of quality that is near perfection.  
 Defect level that is  no more than 3.4 parts per million
- Sigma represent standard deviation, a measure of variation.  A Six
Sigma process is very consistent,  with very little variation, and
therefore, has a very small standard deviation,  so small that a
distance from the mean, or the average,  to the nearest specification
limit,  is equivalent to six standard deviations, or six sigmas
- As a methodology: Six Sigma refers to the DMAIC: define,
measure,  analyze, improve, and control.
 Six Sigma  is a project methodology for improvement.
2. An over view of DMAIC:
- Define phase:
 Project is defined,  
 Project team is selected
 Management launches the Six Sigma project.
- The team is tasked with understanding:
 What is important to customers.
 Determine the performance outcome to be improved.
- Measure phase:
 The size and scope of the problem is understood.
 Performance on Y is measured.  
- Analyze phase:
 Study data.
 Determine the causes of factors that impact performance.  
 Diagnose and prove which X factors impact the Y.
- Root cause analysis is performed  so that the causes of full
performance are determined. The X factors that drive performance Y
are determined.
- Improve phase:
 Solutions are developed, piloted, and implemented to reduce the
length and the variability of processing times.
- Control phase:
 Controls are established  to ensure that our improvements, or
gains,  are sustainable.  
 Controls and procedures are put in place  so that employees know
when and how to intervene  to ensure superior performance.
3. Key roles of executives and champions
3.1. Executives?  
- Who?
 CEO
 His or her direct reports,  the C suite, the COO, the CFO, CIO
 Senior management such as vice presidents and directors
- Roles?
 Deploy Six sigma projects
 Establish project selection criteria
 Review and select projects,
 Assign project champions
 Review updates from champions
 Provide resources as needed
3.2. Project Champion?
- Who?
 The executive team's point person who is tasked  with ensuring
project success.
 Executive or senior manager  who has enough clout and respect to
ensure  that the project has the right resources, time, and priority that
it needs.
- Roles?
 Selects a project leader - The project leader is someone who
plans,  leads, and executes a project  with the help of a designated
project team
 Approves the project charter - The project charter is a document  that
defines the project including its objectives,  timeline, and scope.
 Select the project team and launch the project.
 Provides time and resources for the project team to work on the
project.
 Reassign and redistribute work to others as needed
 Closely monitors progress  and removes any roadblocks -
Roadblocks may be organizational turf issues,  budget, resource
limitations, or conflicting priorities.  
 Receives updates  from the project leader on a weekly basis.
 Approves implementation of improvements.  
- The champion is the key person who approves  or disapproves any
changes or improvements proposed  by the project team.  
These may include changes to processes, key metrics,  procedures,
training, and job descriptions.  
 In short, the champion is management's point person
responsible for project success.
4. Level of expertise: See Chapter 3 - Part C . Six Sigma Roles and
Responsibilities.
II. Key concepts in Six sigma
1. Critical to quality metrics:
- Voice of the Customer, or VOC: are needs and expectations
expressed  in the customer's language.
- CTQs: are the performance characteristics  of a process, product, or
service  that are critically important to customers.  
- CTQs are measurable  and we can specify how good they need to
be  in order to satisfy the needs and expectations of customers.  
2. Variation and the normal curve:

3. Defects per milion opportuinities:

- Defects per opportunity, or DPO:  is the total number of
defects  divided by the total number of opportunities.
- To convert to DPMO - Defects per milion opportuinities:, we
multiply by a million. Using DPMO as a measure of quality  is more
accurate than using defects per unit
4. Sigma levels:
- Sigma Level: is a performance metric used to indicate  the quality
level of a product, process, or service.  The higher the Sigma Level,
the better the performance.
- A Six Sigma Level of performance means that there are  no more
than 3.4 DPMO, or defects per million opportunities.  That's
equivalent to 99.99966% good.

- Sigma Level provides a common yardstick to compare

the  performance of different products, process, and services.  
 For defect that can be counts, the Sigma Level is based
on  DPMO, or the number of defects per million opportunities.  DPMO
takes into account differences in complexity  and differences in the
number of  defect opportunities in each unit or transaction
 For performance against specification limits  such as delivery
within 24 hours Sigma Level is the number  of standard deviations
between the mean  and the specification limit.
III. Selection of Six sigma projects
1. Identify potential projects?
*Identify?
- Company's or department's annual goals.  
 What improvements are needed?  
 How do you plan to achieve those improvements?  
 What Six Sigma projects would help you achieve those goals? 
- Identify performance gaps in key metrics,  key performance
indicators, or KPIs: Do these performance gaps have to be closed?
- Review performance reports  on products, services, and
processes: Identify the areas with performance shortfalls. They are
potential targets for Six Sigma projects
- Review data on customer complaints,  returns, warranties,
claims, and credits.  Areas with a high number of complaints,
returns, or credits  indicate deficiencies.  These deficiencies are
potential targets  for Six Sigma projects.
- Audits provide a good source for potential projects.  Review
reports from customer audits  or internal quality audits.  Any recurring
findings  or areas with chronically poor performance  are potential
targets.  
- Employee suggestions are another source  for identifying
projects. Especially when the improvement ideas are supported by
data
 *Screen projects:
 Recurring or chronic issue,  meaning it should not be a one-off or
one-time occurrence,  
 The opportunity should be specific,  specific to a particular product,
process, or service. 
 It should be measurable.  You cannot improve what you cannot
measure.  
 Significant operational and financial impact.  
 Alignment with goals.
- This is where senior management must step up  to prioritize and
select the right projects to launch
*Prioritze projects
 Financial impact
 The degree of urgency  should also be considered when prioritizing.  
 Impact on customers
 The degree of difficulty in executing the project
 The level of change of cultural acceptance  by the organization.  
2. Select the six sigma team?
- Champion: Team owner – chosen by senior management in charge.
 In charge of organizing  and supporting the project
 Senior management
- Project leader: Team captain – chosen by the champion
 Lead the team
 In charge of executing the project
  Who has the knowledge and experience in the processes  being
targeted by the project.  
 Can lead a cross functional team  because processes and
improvement opportunities  cut across departments and functional
boundaries
- Team members.
IV. Define phase:
1. Steps in the Define phase:
*Step 1: Define the problem  and goals statements.  
- What specific problem or improvement opportunity  is the project
addressing?  
- What is the goal of this project?

- What measurable performance outcome  or target must the project

accomplish?  And by when?
+ Define Y (Y = f(x)) - Where y is the performance measure to be improved
*Step 2: Develop the project charter.
- The project charter is a document  that describes the project.  It
includes the problem and goal statements,  the project scope, the
expected operational  and financial impact, names of the project
team  and other key players, and milestones
- The project charter serves as an internal contract  between senior
management and the project team. It provides a common
understanding on the purpose  and focus of the project
*Step 3: Develop a SIPOC diagram
- The SIPOC diagram identifies and illustrates,  at a high level,
processes relevant to the project.  Inputs and outputs involved, those
 who supply  the process inputs, and those who receive those process
outputs as customers.  
- The SIPOC diagram is a useful scoping tool,  showing what
processes are within the scope  of the project, and the stakeholders
involved.  

 Executing the define phase correctly will help you  provide clear

direction and focus to the project team.  The team will know what the
specific problem is,  the goal to be accomplished, by when, and by
whom,  what's in scope and what's out of scope.  This way, the
project is focused for success. 
2. Problem and goal statement:
- The problem statement describes the opportunity  or problem to be
addressed by the Six Sigma project.
- The purpose of the goal statement is to establish  the target result to
be achieved and by when.  To do this effectively, the goal statement
should be smart, S-M-A-R-T.
- It is an acronym for specific, measurable,  attainable, relevant and
time-bound.  
+ S, specific as to what needs to be improved.  
+ M, measurable as to how much improvement to achieve.  
+ A, attainable, that a target result is  realistic and achievable.  
+ R, relevant to the success of the business or organization.  
+ T, time-bound, the timeframe to get it done. 
- To summarize, the opportunity or problem is recurring, chronic,
specific, measurable, relevant and significant.  The goal must be
SMART;  specific, measurable, attainable, relevant and time-
bound.  When you learn how to develop  effective problem and goal
statements,  you benefit because they compel you to act
decisively  with direction and focus as to what needs  to be improved
and why, by how much, and by when. 
3. Complete the project charter:
- The project charter is a document  that provides direction and focus
to the project team.  It is management's authorization for the
project,  spelling out the purpose, goals, scope of work,  and
assignment of resources to the project.  In short, it provides
legitimacy  to the project's existence.
 Project name
 Opportunity or problem statement
 Goal statement
  Key metric: State the metric or performance measure  to be
improved.  This is the Y in Y is a function of x.  
 Expected benefits: State the expected  operational and financial
benefits.  
 Project scope: State what's in scope  and equally important, what's
out of scope.  This provides project boundaries  and helps prevent
scope creep. 
 Milestones: List the checkpoint dates  for project progress.  The
completion dates of each phase of DMAIC  are usually good
milestones.  
 Signatures: Typically, there are three signatures,  project leader,
someone from finance,  and the champion.  The project leader
agrees to take on the project.  The finance person validates the
expected  financial benefits.  And the champion approves the
launch of the project
4. How to use SIPOC diagrams:
- The purpose of the SIPOC diagram is  to help the Six Sigma project
team document  and communicate the overall scope of the processes
related  to the project on one page.  Useful features are the SIPOC
are the high level bird's eye  view of the process, its inputs and
outputs and the lists  of the suppliers and customers.  In other words,
the stakeholders of the project.
V. Measure phase:
1. Steps in the Measure phase:
- The Measure Phase is to measure the size and scope  of the problem
or performance gap.  How big, how bad, how widespread is it?
 - The purpose of the Measure Phase  is to measure the Y, in Y equals
F of X.  What are the steps involved in the Measure Phase?
*Step 1: Develop a data collection plan.
*Step 2: Map the relevant processes.
*Step 3: Ensure that the data and measurement system used  is
valid.  
- Measure how bad the problem is? 
- How bad compared to what? 

- How bad compared to requirements, specifications or targets?

- In other words,  how well are requirements and customer
expectations met?  
- How often is it met  or not met?  
- How widespread is it?  

- Use the data collection plan you developed earlier,  to guide you in
measuring the Y.  So that all the questions listed on that plan,  will be
answered.  
*Step 4 :  Measure the Y in Y is a function of X. 
2. How to map the current process?
- A process map is a diagram  that provides a visual representation  of
the process flow, or sequence of activities or steps, that take place in
a process from start to finish.  
- Process maps are very useful in a six sigma project. During the
measure phase,  we map the current process using a process
map.  This provides the project team  and everyone else
 involved  with the visualization and common understanding  of what
actually happens in the process.  
- Also, once a current process has been mapped,  the team will also
know what's not happening  or what's different from what should be
happening.  Therein lies the power and benefit  of mapping the
current as-is process.  
- Map a current process:
+ Involve those who work the process  and those who know the
process.  They are most familiar as to what actually happens. 
+ Decide on the start and endpoints of the process map.  
+ Use a logical orientation,  either from left to right or top to bottom
flow to capture the sequence.  
+ Walk the process as if you are the transaction or work item  that's
being processed from start to finish.  
3. Plan for data collection?
- Collecting data is not free or cheap, collecting data  requires time,
effort, and resources being tied up
- To plan for data collection, I recommend the following  steps:
 Step one make a list of specific questions  you want answered
regarding the Y.  
 Step two, for each question listed decide how you want  the
answers presented and displayed.  
 Step three, based on that, decide what tools are needed  to make
that possible.  
 Step four, for each question what type of data and how
much  data are required by that tool.  
 Step five, determine where and from whom the data  should be
collected.  
   By planning correctly, you'll avoid the common pitfalls  of spending
too much time in the measure phase,  going in circles, data hunting
and measuring everything  in sight.  A data collection plan will help
you carry out  the measure phase effectively and efficiently. 
4. Types of data and graphs
- There are two types of data, continuous and discrete.  
+ Continuous data is data that can take on any value  on a continuum
or continuous scale.  Such as inches, or centimeters on a measuring
tape,  or pounds or kilograms on a weighing scale.  Continuous data
can be expressed as decimals or fractions.  Such as 2.2 meters tall or
weighing 175.6 pounds.  
+ Discrete data is data that take on values which are integers or
whole numbers, in other words, discrete values.  These are usually
numbers that you can count. Examples include number of
complaints,  number of people in each checkout line,  the number of
on time departures  and the number of late departures for
airlines.  Proportions can be calculated from these counts.  For
example, the proportion of M&Ms that are green.  The proportion of
flights that are on time.  Because of categories used such as color of
M&Ms,  on time departure or not and stall location A, B or C,  discrete
data is also called categorical data.  
- Categorical data is a more contemporary name  for discrete data.  
+ For continuous data graphs can be used to show variation.  Graphs
and charts commonly used in Six Sigma projects  for continuous data
are histograms,  dotplots and boxplots.  These graphs display the
pattern of variation  showing how spread out the measurements
are  and where they are centered.  

+ For discrete or categorical data, bar charts  and pareto charts are

typically used to contrast  the frequency count in each category.  The
pareto chart is the most popular chart  as it shows and prioritizes
based on how frequently each category occurs.
 + For both continuous and discreet data to show trends  over time,
graphs such as line graphs, time-series charts  and control charts are
used.  This chart shows delivery performance over time.  Knowing
which types of data and graphs to use  and how to interpret them will
help you answer key questions  during the measure phase such as
how big, how bad  and how widespread the problem is. 
5. Process capability and sigma level
- Process capability refers to how capable  or how well the process
performs against  its target requirements  or specifications.  
- In summary, process capability can expressed  as a defect rate, a
yield rate,  or Sigma level.  
- In the measure phase,  a key benefit of measuring baseline
performance  in terms of process capability  is that it enables you to
know just how often,  how well, or how badly performance meets
specifications.  Specifications which you agreed and promised to
 customers. Another benefit is that improvement results  at the end of
the project  can be measured against this baseline  to show just how
much has improved.  We cannot improve what we don't measure. 
VI. Analyze phase
1. Steps in the Analyze phase:
- The purpose of this phase is to answer the w word,  why, why is
there a problem?  We have to determine which X's are the key
factors  that impact the problem Y,  in the equation Y equals f of x.  
- There are five steps in the Analyze Phase:
+ Generate a list of potential X's  that impact Y
+ Organize the potential X's,
+ Shortlist and select the likely X's,
+ Develop a data collection plan for the analysis
+ Prove the key X's in Y equals f of x.  
- The first step: Generating a list of potential X's  that impact Y.  
- This is done using brainstorming  to generate a list of potential
suspects. List as many potential X's as possible.  
- Next we need to organize the potential X's.  To do this organize the
brainstorm list  using a tool such as a Cause-effect diagram,  or
Fishbone diagram.  
- After the diagram has been completed,  Shortlist and select the most
likely key X's  that are impactful.  Use the knowledge, experience,
expertise,  of those familiar with the problem  to identify which
potential X's are the most likely culprits of key X factors.  
- Then develop a data collection plan  for the analysis.  We need a
data collection plan  before collecting any data, why?  So that the
 correct and sufficient amount of data  are collected to test selected
X's.  
- The final step is to prove the key X's: Inferential statistics and
Hypothesis testing are used. Conduct the necessary tests,  such as
the regression prevention,  to validate the key X factors.  
 At the end of Analyze Phase  we have a list of proven X's  that were
validated by data driven analysis.  
  In summary, the focus of the Analyze Phase  is on the question,
why?  Using data driven analysis  we proved the key X's that belong
in Y equals f of x.  The power and data driven rigor of Six
Sigma  has been put to work. Correctly understanding the Analyze
Phase,  its purpose, and the steps involved,  will help you render a
correct diagnosis  to get to the true root causes  of key X factors that
impact the problem.  
2. How to use the cause-effect diagram?
- A cause-effect diagram is simply a diagram to organize  the list of
potential causes of a particular effect.  
- The next step of the analyze phase,  is a select from the CE
diagram,  the most likely theories or Xs,  to test and validate the
data.  This selection will be done using the knowledge  and
experience of the project team,  and subject matter X
splits.  Developing the cause-effect diagram will help you
brainstorm  and organize the potential Xs that impact the Y.  This is a
key step in diagnosing the Xs  that belong in Y=F(X). 

3. Hypothesis testing?
- Hypothesis testing is sometimes called the  scientific method.  A
theory or hypothesis is proposed.  Then data or evidence is
collected  to see if the theory is refuted or supported.  If the theory or
hypothesis is not supported,  then it is considered disproven.  If the
data supports it, then the theory is validated.  
- In terms of a Six Sigma Project,  the theories of potential X's  are all
listed on the cause effect diagram  during the analyze phase.  Using
the knowledge and experience of the project team  and subject
matter experts,  the likely theories or X's  are selected to be tested
with data.  
- To use the justice system or court of law analogy,  a person is
innocent until proven guilty  and the verdict is either guilty or not
guilty,  never innocent.  Do we have enough evidence to convict
oven temperature  of causing our pizza crust problem?  If there is
insufficient evidence,  then we have to dismiss the hypothesis verdict
not guilty. However, if we find that  there is a lot of variation in oven
temperatures  among the various stores,  and if we can establish the
correlation and causation  with the variability in pizza crust
quality,  then we have overwhelming evidence.  Since there is
overwhelming evidence,  then we cannot dismiss the
hypothesis.  verdict guilty.  Oven temperature is a proven cause  or
key X in a pizza crust problem.  
4. Data collection in the Analyze phase?
- Planning for data collection in the analyze phase  starts with the
following questions.  
 What is the theory or hypothesis to be tested? For example, you
suspect that oven temperatures used  are not consistent from store to
store  or from chef to chef, even within the same store.  
 What type of hypothesis test should be used?  For example, do we
want to test  for differences among groups?  In this case, differences
in average oven temperatures  between pizza stores or between the
chefs at each store.  
 What data is needed?  In our example, it would be oven
temperature  by store, by chef, during peak hours,  and off-peak slow
hours and so on.  
 How much data is needed to run the test  and draw a valid
conclusion?  Do we need one data point or 100 data points?  
 From whom, when, and where?  From which persons should data be
collected?  From when to when, last month, last year?  Or for how
long, a day, a week, or a month? And from where, which location,
which database?  
 I recommend that the data collection plan  be laid out in a table with
columns.  The column headings are the questions I listed.  Each
selected x will be a row entry in that table.  Planning for data
collection during the analyze phase  is important so that the project
team knows exactly  which hypotheses are to be tested,  which data
needs to be collected, how much data to collect,  from whom, from
when to when, and from here, in order  to validate the key x's that
belong in y equals f of x.  In other words, you validate potential
causes  or key x's with facts and data. 
5. How to analyze graphs and charts?
- Case study: Customers are complaining about pizza crust.  The pizza
chain is losing revenue.  A Six Sigma project team is now in the
analyze phase.  Potential x's were generated, and a few x's  were
selected to be tested and validated.  
 One potential x is that one or two locations  is causing all the crust
problems.  
 Another potential x is that the crust problem  is caused by variation in
oven temperatures. 
 We can use graphs and charts to help validate key x's  during the
analyze phase.  For example, let's address the first potential x
mentioned  in this analysis.  Since the number of crust complaints is
discrete  or count data, a bar chart, or Pareto chart is
appropriate.  But if I want to prioritize the locations  based on the
number of crust complaints,  then the Pareto chart is the more
suitable graph. Here is the Pareto chart of pizza crust
complaints  across locations. 
  Looking at the Pareto chart, we can conclude  that yes, the crust
problem is indeed isolated  to just one location.  We have proven one
x.  Next, let's address the second potential x.  That the crust problem
is caused by variation  in oven temperatures.  Since we now know
that the crust problem is caused  by one location, the Six Sigma
project team can focus there.  To test and validate this potential
x,  the project team would need to plot the temperatures used  for
each pizza, by each chef working in this location.  Which graph or
chart can be used?  Since temperature is continuous data,  it is
appropriate to use histograms, dot plots,  or box plots.  
 These graphs display the pattern of variation,  showing how spread
out the temperatures are,  in addition to showing where they are
centered.  Here is the graph of box plots showing oven
temperatures  used by each chef at this location.  Looking at the
graph, it is obvious as to what's happening.  The variation in oven
temperatures is caused  by two chefs, chefs b and c.  Their oven
temperatures are the most inconsistent.  We have proven another
x.  We should follow up with chefs b and c.  This is how you can use
graphs and charts to analyze  and help prove potential causes and
validate key x's. 
6. How to analyze process map?
- Analyze process map?
 My first recommendation is to identify any bottlenecks.  Ask where
are the delays, where are the holdups?  Highlight those steps,
then ask why are there bottlenecks?  Is it because there's too
much work required  at those bottleneck steps?  Could it be the
workload is not balanced among the steps?  Perhaps there is not
enough people  or resources assigned to carry out those steps.  
  Identify any workarounds, perhaps,  the official procedure is too
unwieldy,  people bypass the bureaucracy and take shortcuts.  
 Question why are there so many steps?  Ideally, the perfect
process has only one step,  snap and it's done, mission
accomplished.  Examine each step and ask why is it
needed?  What value does it add?  Identify the steps that really
add value  to the final outcome or end-result.  
 These are called value-added steps, or VA for short.  
 If they don't add value highlight them  as now value-added steps,
or NVA for short.  
 If there are steps that are necessary  to get to the value-added
steps,  for example, booting up the computer,  and logging into the
system classify them as value enabling steps, or VE for
short.  They do not add value but, at the same time,  they are
necessary to enable you  to get to the value-added steps.  
 Zero in on the decision diamonds.  These diamonds may be
inspections,  checks, or evaluation decisions.  How often does it
fail to meet the decision criteria?  If significant, ask why?  
 Look at the rework loops, where work has  to be sent back to be
redone because it failed an inspection  Ask how long are the
rework loops?    
 Shorten the rework loop, why can't inspection take place right after
step two?  Or, better yet, implement self-checking.  Or, even better
yet, mistake proof.
VII. Improve phase
1. Steps in the improve phase?
- What is the purpose the improve phase?  
 Well, at a high level the purpose of the improve phase is  to
address the proven key Xs,  and
 Come up with solutions to improve the Y.  What does this mean?  
- The sequence of steps in the improve phase are as follows: 
 Generate potential solutions to address proven key Xs,  
 Evaluate solution alternatives,  
 Select the right set of solutions, and implement.  
- However, before implementing the solutions,  you must apply these
tools and techniques:  
 Process maps of the improved process
 FMEA or failure modes and effects analysis  used for identifying
mitigating any potential risk  of failure in the new process
 Mistake proofing to error proof any possibility  of errors occurring
 Pilot testing prior  to full implementation.  
- Various tools such as design of experiments, DOE,  and process
simulation may be used  to determine optimal settings.  
 For example, in our pizza crust problem,  DOE can be used to
determine the optimal settings  for oven temperature, baking time,
and tossing technique,  as well as methods and procedures to
reduce any variation  from those settings.  The resulting optimal X
settings may be  426 degrees fahrenheit, 11.2 minutes in the
oven,  and tossing the pizza three times clockwise.  Methods and
procedures are developed  to ensure those levels are set
correctly  and any variation is reduced.  
- On a changed management note it is critical  that key stakeholders
are involved and engaged  during the improve phase.  Key
stakeholders include process owners, process operators,  managers,
and others who are impacted by the problem.  Their input and buy-in
are critical.  Ideally, these folks would have been
engaged  throughout entire project either as project team
members  or as part time subject matter experts.  
2. Generate, evaluate, and select solutions
- To generate ideas and potential solutions,  
 Use brainstorming
 Other creative thinking techniques.  
- One such technique, taken from Edward de Bono,  is six thinking
hats.  This technique calls for members of the team  to wear different
colored hats  where each color represents a thinking role.  Such as
optimism, devil's advocate, creativity, and so on.  Basically, the
person wearing that hat  takes on that personality.  
- Once you've generated a list of possible solutions,  the project team
evaluates the list,  to come up with a shorter list.  Techniques used
for shortlisting include
 Multi-voting,  
 Two by two matrices such as effort impact,  or cost benefit
quadrants.  So, those solution ideas require little effort  and low
costs that have a high impact and high benefits,  should
definitely take the shortlist.  
- As you move from evaluating,  to selecting potential solutions,  use
techniques such as a criteria selection matrix,  the Pugh matrix, and
 cost-benefit analysis.  The criteria selection matrix evaluates  and
scores each solution alternative  against a great criteria,  weighted by
it's relative importance.  The set of solution alternatives  with the
highest score is selected.  

- In the Pugh matrix, selection criteria is used  to compare alternative

solutions  against a baseline solution.  Is it better, worse, or the same
as the baseline solution?  The alternative with the most better,  and
the fewest worse is selected.  
-

- Cost-benefit analysis also factors in  into the selection

process.  Obviously, the benefits have to outweigh the costs.  
-

- Once you have generated, evaluated,  and selected possible

solutions, the work is still not done.  The recommended solutions
must be approved  by the champion and other key scene
managers  before implementation.  Following this process and
 obtaining the buy-in,  will prevent you and your team  from doing the
same thing over and over again. 
3. Reduce the risk of failure through FMEA
- There are two types of FMEA,  the Design FMEA, and the Process
FMEA.  
+ The Design FMEA is for reducing the risk of failure  associated with
a product or service design  such as when you are designing a new
hotel  or the next smartphone.  
+ The Process FMEA is for reducing the risk  of potential failures in a
process
- For each step of the process what can possibly go wrong?  In what
ways can it fail?  These are called potential failure modes.  And for
each potential failure mode  what is the effect?  And how severe is
the potential effect,  using a one to 10 scale, where 10 is the
worst?  That is called the severity score.  What are the potential
causes for each failure mode?  How likely is the occurrence of these
potential causes  on a one to 10 scale, where 10 is the most
likely?  That is called the occurrence score.  What process controls
are currently in place  to detect the cause or the failure mode?  What
is the likelihood of detection on a one to 10 scale,  where 10 is the
least likely to detect?  That is called the detection score.  When we
multiply severity times occurrence  times detection we get a
composite score  called the risk priority number, or RPN.  The RPNs
can be used to prioritize the failure modes.  The higher scoring failure
modes  are the first targets for improvement.  
- During the Improve Phase of the Six Sigma project  FMEA can be
used to prioritize  and mitigate the risk of failure.  Process steps can
be improved,  and process controls put in place to reduce the RPN.  It
can be tempting to think that your improve process  will not go wrong,
while the truth is it will.  But what you can do is to reduce that risk  by
using FMEA. 
4. Mistake proofing?
- Mistake proofing or error proofing,  as it is sometimes called,
 Is best  when it prevents errors from occurring, and if that's not
possible, 
 The next best thing is to facilitate the work  so that errors are
minimized. 
 Lastly, if errors do take place,  then detection should be  obvious and
immediate, or automated.  
- There are basically three levels of mistake proofing.  Here they are in
order of preference:  prevention, facilitation, detection.  The most
preferred form of mistake proofing  is the prevention of errors.  A
perfect example of this  is the way ATMs or cash machines used to
work.  Remember the sequence? First, you insert the ATM or debit
card,  enter your PIN code, request cash, say $40.  What came out
first, cash, then receipt.  What came out last, your card.  As a result,
after getting the cash,  customers often forgot their card,  and many
cards were left behind,  benefiting the next customer.  At that time, I
was traveling a lot,  and I came across some machines  with a slightly
different sequence.  The first thing that came out from the
machine  was the ATM card, then the receipt,  and the last thing that
 came out was the cash.  So there is no way I could have
forgotten  and left the card behind.  So a simple resequence of
process steps  mistake proofed any possibility  of leaving the card
behind,  no additional cost involved,  just a simple sequence of
steps.  Of course, the technology and machine  has changed since
then, so that today,  you just slide your card, no insertion
required,  card problem solved.  Another form of mistake proofing by
prevention.  If prevention is not possible,  then mistake proofing by
facilitation is utilized.  It is facilitation of work to minimize errors.  And
example of this principle  is the cash register at fast-food
restaurants.  The keys or buttons show a picture  of a hamburger or
large fries,  and the cashier simply presses the picture  without
worrying about typing an incorrect price.  This minimizes errors, but it
does not prevent them  from pressing the wrong buttons by
mistake.  If mistake proofing by prevention  or facilitation is not
possible,  then utilize mistake proofing by detection,  where detection
of errors is immediate,  either by being obvious or automated.  And
example of this is automatic spell check  in documents using word
processing programs,  where wiggly lines are drawn
immediately  after a word is spelled in correctly.  So, integrate
mistake proofing into your Improve process.  Where possible apply
mistake proofing  by prevention first.  If that's not possible, then apply
mistake proofing  by facilitation and detection.  This way, you'll
prevent errors, minimize errors,  or at the very least, mitigate its
effects immediately. 
5. Pilot test and implemention?
- A pilot is the trial run, a dry run, or a small-scale test  to make sure
the the improvements will work as planned. It is an opportunity for the
Six Sigma project team  to understand how the improvement
solutions  will work on a very limited, or small-scale basis,  before a
full-scale implementation.  Pilots enable any kinks or problems  to be
uncovered and fixed.  Before the project team rolls out
improvements  plant-wide, division-wide, or company-wide,  across
all locations.  
- It may come as a surprise to many folks,  but a pilot is actually a data
collection exercise.  Why?  Because data is collected during a
pilot  so that answers can be provided. Answers to critical questions,
such as,  
 How well will the improvement solutions work?  
 Will it show enough improvement? 
 Will it work without any problems? 
 If no, what are those problems, so that they can be fixed  and the
solutions revised?  
 What can be done to ensure a smooth, full-scale implementation
later?  
 In addition to pilot testing,  planning prior to implementation is
important.  Planning the implementation with regards to
communication,  to ensure buy-in from key stakeholders,  including
what is the right message to communicate,  by whom, and to whom.  
 Procedures that need to be revised.  
 Responsibilities and authority that may need to be changed.  
 Training, who to train, when to train, how to train.  
 Timing of implementation.  How should they be coordinated or
staggered? 
 Time and effort required for the implementation.  
 Budgeting for the type of resources  and level of resources required.  
 In short, an implementation plan is required.  Planning is critical,
because if you fail to plan  then you're planning to fail. 
VIII. Control phase
1. Steps in the control phase
- The main purpose of this phase is to establish controls.  
 To control the key X factors  to ensure the improved Y is sustained on
an ongoing basis.  Sustainable after the conclusion of the project  and
the disbanding of the project team.  
- The first steps in the control phase are  first, develop a control
plan  for monitoring, controlling, and regulating performance.  The
control plan tells when to leave the process alone  and when to take
action and what action to take.   Here's another example.  Say the
desired temperature in the room  is 72 degrees Fahrenheit.  The
control plan should specify the desired temperature,  who's in charge
of regulating the temperature,  when are they authorized to take
action,  and what action to take.  In this example, someone in the
room  is assigned the responsibility and given the authority  to
regulate temperature.  The control plan specifies increase the
temperature  if it drops below 70 degrees  and lower the temperature
if it goes above 74 degrees.  In between, do not adjust.  
- The next step in the control phase  is to work with process owners to
update procedures  which incorporate controls  and implement
communication and training plans.  
- Then, implement with the process owners  and monitor
performance.  
- Once project improvement goals have been achieved,  finance will
validate the actual financial impact.  
- Finally, project completion is signed off  by the project champion.  
2. How to use SPC charts?
- SPC stands for Statistical Process Control.  The purpose of the
Control Chart or SPC Chart  is to indicate to you when to leave the
process alone  and when to intervene and troubleshoot, why
- Using statistics to indicate when it is random variation  and when it is
not.  The SPC Chart tells you when to leave the process
alone because it's just random variation,  and when to intervene and
take action  because something out of the ordinary happened.  
- There are SPC Charts for
 Continuous measurements,  such as, dimensions and time,  
 Counts of defects and proportions.  
3. The control plan
- The control plan is the blueprint for ensuring  the right controls are
implemented  to achieve performance targets  on a sustainable
basis.  It provides process owners and operators  with the means to
control a process  so that it performs well day in and day out.  
- The control plan specifies one, what needs to be controlled -> What
needs to be controlled is called the control subject. Control subjects
should be the relevant Y  and any key X factors.  In our office
example, the control subject is temperature.  
- Two, the specification, target, or desired range.  We can specify the
target as 72 degrees Fahrenheit.  And it is too hot when it is above 75
degrees,  and too cold when it's below 67 degrees.  So the desired
range is 67 to 75 degrees.  
- Three, how feedback on actual performance is provided,  including
how the measurement is made,  how frequently, and where it is
recorded.  In our example, using a room thermometer  read by
someone assigned to that role,  the temperature is to be checked and
recorded every hour.  
- Four, when to take action and what action to take.  Leave the
temperature alone when it is  between 67 and 75 degrees.  Take
action as follows.  When the temperature is above 75, turn on the
AC.  When the temperature is below 67 degrees,  turn off the AC and
if needed, turn on the heat.  
- Five, who is responsible and authorized  to monitor and take
action? In our example, we can state that the person assigned  is
responsible for temperature and is authorized  to take action and
specify that results  and actions taken should be recorded.  
 To summarize, the control plan specifies  what needs to be
controlled, the specification target  or desired range, how feedback on
actual performance  is provided, when to take action and what action
to take, and finally, who is responsible and authorized.  With a control
plan embedded in the standard procedures  and operating
instructions, the folks running the process  have the ability and the
means to control the process  so that it performs well day in and day
out.  Now that we have a control plan down,  nobody in your office
should ever shiver or sweat again.