Concordia Institute for Information System Engineering (CIISE)

Concordia University

PROJECT REPORT

Project: Processing time optimization in Broadband Service

Company

Course: Total Quality Methodologies (INSE 6210)

Submitted To:
Professor Dr. Anjali Awasthi

Submitted By:
Student Name Student ID

Arun Raj Mudumala 40041873

Sharanjeet Kaur 40102020

Deepak Range Gowda 40050900

Sridath Jeelugula 40049310

Sai Krishna Kotagiri 40070154

INSE 6210: Total Quality Methodologies 1

Contents

INTRODUCTION ....................................................................................................................................... 3
1. DEFINE PHASE ..................................................................................................................................... 4
1.1 Project Charter .................................................................................................................................. 4
1.2 Identifying CTQ’s: ........................................................................................................................ 5
1.3 Process flow chart: ...................................................................................................................... 6
2.0 MESURE PHASE: ................................................................................................................................ 7
2.1 Data collection: ................................................................................................................................. 7
2.2 Process Capability Analysis ............................................................................................................... 8
2.3 Measurement System analysis: ........................................................................................................ 9
3.0 ANALYSIS PHASE: ............................................................................................................................ 10
3.1 Pareto Analysis:- ......................................................................................................................... 10
3.2 Hypothesis Testing:-.................................................................................................................... 13
3.3 Affinity Diagram:- ........................................................................................................................ 16
3.4 Root Cause Analysis- ................................................................................................................... 16
4.0 IMPROVE PHASE: ............................................................................................................................ 18
5.0 CONTROL PHASE: ............................................................................................................................ 20
6.0 Conclusion: ...................................................................................................................................... 23
7.0 References: ..................................................................................................................................... 24
8.0 Appendix ......................................................................................................................................... 25

INSE 6210: Total Quality Methodologies 2

INTRODUCTION

ABC is a Broadband service providing company providing data

services in the region. The Customer application form (CAF) for a new
connection are processed by 30 operators, on an average 1500 CAF are
processed daily. After marketing effort the CAF per day increased to 2500 in
turn ABC increased the number of operators from 30 to 50. But also the
%defects in CAF increased more than the acceptable 10% of total
opportunities for error and also the processing time increased to more than
48 hours. This causes the rework and also penalties for late activation which
is causing financial loss and also customer dissatisfaction. The customers are
also dissatisfied as the connection activation is taking more time than
promised.
The main scope of the project is to analyse the causes of delay occurred due
to errors in CAF and to verify whether these are making significant
difference in activation time in providing services to their customers. For
this we are following DMAIC methodology in our project.
DMAIC is a data-driven quality strategy used to improve processes. It is an
acronym for the five phases that make up the process:

INSE 6210: Total Quality Methodologies 3

1. DEFINE PHASE

For this project we have focused on the following techniques to define the
problem:
1.1 Project Charter
1.2 Identifying CTQ’s
1.3 SIPOC
1.4 Process chart

1.1 Project Charter

Project Title : Processing time optimization in Broadband Service Company

Date of Authorization: 15/08/2018

Project Start Date: 22/08/2018 Project End Date: 21/08/2018

Project Manager: Dr. Anjali Awasthi. Project Leader: Arun Raj

Project Sponsor: xxx Project Champion:xxx

Team members: Deepak, Sharanjeet, SriDath, Sai Krishna.

Process owner: ABC BROADBAND SERVICES

Business case: ABC is a Broadband service providing company providing data services in the
region. The Customer Application Form (CAF) for a new connection are processed by 30
operators, on an average 1500 CAF are processed daily. After marketing effort the CAF per day
increased to 2500 in turn ABC increased the number of operators from 30 to 50. But also the
%defects in CAF increased more than the acceptable 10% of total opportunities for error and
also the processing time increased to more than 48 hours. This causes the rework and also
penalties for late activation which is causing financial loss and also customer dissatisfaction.
The customers are also dissatisfied as the connection activation is taking more time than
promised.

Problem Statement: Due to increase in Effects in the data entry for m,

is a delay in the
Activation time and the company is losing certain amount on rework and penalties. It leads to
Users’ dissatisfaction and a potential business impact for ABC Company.

INSE 6210: Total Quality Methodologies 4

 Business Scope The time for activation can be within 48 hours and not more than 48hrs. Any
incorrect section in the CAF is a defect and has to be reprocessed. The main aim is to reduce
the defects and the processing time.

CTQ: Metrics Goal:

 %defects within 10%  %defects within 10%

 Processing time within 48 hours  Processing time within 48 hours

Benefits Expected:

Preventing losses incurred due to reworks.

Improving quality in service by reducing activation time.
Reducing defects in CAF forms.
Increase in customer satisfaction.

Table 1: Project Charter

1.2 Identifying CTQ’s:

Processing time: (Units in Hours)

Right now company is facing a problem of delay in service time,
due to this there is huge customer dissatisfaction. So the company
has set a target to provide the service within 48 hours i.e. the
processing time should be less than 48 hours. Here process time
refers to, the time to process application to till the activation times
provides service to customer

% of Defeats:
Defects in CAF is leading to rework which eventually takes more time
than the normal. This rework includes to verify the CAF from
beginning which is causing the delay in processing time of CAF. If this
defects are avoided the service time can be optimised
INSE 6210: Total Quality Methodologies 5
1.3 SIPOC
It is a tool to summarize the inputs and outputs of one and more
processes in a table form. It stands for supplier, input, process, output and
customers. Using these five areas, a high level overview of a problem is taken
into consideration. Here, resellers are the supplier to provide the documents
as input to process them for cross checking and then database is obtained
along with customer information as output and then it is given to activation
team.

Supplier Input Process Output Customers

Cross
Checking of
CAF form
with Data base
Sending Identity Prof with
documents customer Activation
Resellers
to the Data information Team
entry Team required for
Entering activation
customer
data in the
data base

Figure 1: SIPOC Diagram

1.3 Process flow chart:

The sequence of activities that occurs in the process are illustrated in the
below process flow diagram.

INSE 6210: Total Quality Methodologies 6

 Figure 2: Process flow chart

2.0 MESURE PHASE:

This is the second phase of DMAIC technique. It is the process of

quantifying the performance dimension of the product, services, processes
and other business activities. Measurement phase involves collecting
crucial data for analysis.

2.1 Data collection:

Defects for Million Opportunities (DPMO): A defect is defined as a non-
conformance of a quality characteristic to its specification. DPMO is
measured by diving the total number of defects in a sample by the number
of opportunities.
Number of defects = 336
Sample size= 200 (No of CAF)
Number of defect opportunities per unit in the sample= 7 (No of entities in
CAF)
Total number of defect opportunities in the sample= 200*7 =1400
INSE 6210: Total Quality Methodologies 7
 Number of defects
DPMO = ∗ 1000000
Total number of defect opportunities in the sample

336
= ∗1000000=240000 CAF
1400

2.2 Process Capability Analysis

𝑈𝑇𝐿−𝐿𝐶𝐿
Cp = 6σ
𝜇−𝐿𝑇𝐿
cpl = 3𝜎
𝑈𝑇𝐿−𝜇
Cpu =
3σ

Cpk = minimum (Cpl, Cpu)

From sample data:
Mean=38.415
Standard deviation: 8.4257
USL: 48 (Target set by company to provide service within 48 hours)
LSL: 0 (as company didn’t set any minimum time to give service, they want
provide service ASAP)
Cp= 0.38 less than 1. (Process is not capable)
Cpk= min(0.33, 0.4)= 0.33 less than 1. (Process is not capable).

Figure 3: Process Capability Analysis

INSE 6210: Total Quality Methodologies 8
Since the values of Cp and Cpk are less than 1 we can conclude the existing
process is not capable and measures have to be taken for further improvement

2.3 Measurement System analysis:

R&R Analysis
Guage Repeatability and Reproducibility
This spread sheet designed for upto 3 trails, 3 operators and 20 samples

No. of operators 3 Upper Specification Limit 48

No. of trials 3 Lower Specification Limit 0
No. of Samples 20
Data Operator 1 Operator 2 Operator 3
Trail Trail Trail
Sample # 1 2 3 Range 1 2 3 Range 1 2 3 Range
1 38 41 48 10 36 37 42 6 44 47 52 8
2 40 42 37 5 45 38 39 7 49 53 52 4
3 50 51 53 3 50 46 53 7 51 37 50 14
4 53 37 50 16 54 47 49 7 54 44 51 10
5 48 43 47 5 36 37 43 7 52 43 45 9
6 51 52 52 1 46 49 43 6 39 49 37 12
7 42 37 36 6 45 47 52 7 52 48 40 12
8 53 53 40 13 45 40 40 5 37 49 42 12
9 45 52 47 7 42 37 38 5 51 44 53 9
10 48 40 51 11 36 37 38 2 38 42 48 10
11 44 43 52 9 52 43 38 14 47 43 36 11
12 50 54 51 4 43 40 54 14 38 50 51 13
13 47 40 41 7 36 37 41 5 38 51 53 15
14 54 48 45 9 50 39 52 13 41 54 39 15
15 39 44 37 7 46 45 42 4 48 43 37 11
16 44 48 43 5 37 39 45 8 43 37 36 7
17 51 44 45 7 37 48 45 11 38 48 38 10
18 50 44 53 9 49 36 41 13 51 38 45 13
19 42 53 53 11 54 48 48 6 45 51 40 11
20 40 47 50 10 48 44 39 9 53 45 48 8
Range Average 15 12 11
Sample Average 46.21667 43.38333 45.3

Rbar= 12.66667
K1= 3.05
K2= 2.7

Tolerance Analysis in %
Average Range 12.66667 Repeatability (EV) 38.63333 80.48611 As the tolerance is >30%, the Rate is not acceptable
X-Bar Range 2.833333 Reproducibility (AV) 5.800597 12.08458 As the tolerance is between 10% and 30%, the Rate is may be acceptable
Repeatability & Reproducibility 39.06637 81.38827 As the tolerance is >30%, the Rate is not acceptable

R &R value is 81.38 % which is greater than 30 %, which is unacceptable.

Necessary measures should be taken to improve this.
INSE 6210: Total Quality Methodologies 9
3.0 ANALYSIS PHASE:

During the analysis stage, the project group concentrates on

setting up the controls that will be utilized to quantify the procedure's
enhancements all through the procedure.
Having distinguished the CTQs and the pertinent
measurements, the time has come to focus on the Design components and
how they ought to be wanted to oblige the client prerequisites. Before finish
of this stage an abnormal state prepare configuration will likewise be landed
at the rundown of tools that had performed in this project Analyse Phase
1) Pareto Analysis
2) Hypothesis Testing
3) Affinity Diagram
4) Root Cause analysis
5) Cause and Effect Diagram

3.1 Pareto Analysis:-

Pareto analysis is a creative way of looking at causes of problems
which helps to stimulate thinking and organize thoughts. This technique
helps to identify the top portion of causes that need to be addressed to
resolve the majority of problems.
A Pareto diagram is a histogram of the data from the largest frequency
to the smallest. Pareto diagrams are used to analyze cost of quality data. It
follows 80:20 rule i.e. 20% of causes determine 80% of problems. A Pareto
Chart is a type of chart that contains both bars and a line graph, where
individual values are represented in descending order by bars, and the
cumulative total is represented by the line.
Types of Defects Frequency Cost/Occurrence Cost

Title 39 $0.31 $12.19

Name 17 $0.31 $5.31

Residence 59 $1.25 $73.75

Address

INSE 6210: Total Quality Methodologies 10

 Identity Proof No 26 $1.25 $32.50

Date 98 $0.31 $30.63

Reseller Code 31 $1.25 $38.75

Email address 66 $0.31 $20.63

sl.no type of defects number of defects cost/occurance cost

1 residence address 59 1.25 73.75
2 reseller code 31 1.25 38.75
3 identity proof no 26 1.25 32.5
4 date 98 0.31 30.38
5 Email Address 66 0.31 20.46
6 Title 39 0.31 12.09
7 Name 17 0.31 5.27
336

sl.no type of defects number of defects percentage cumulative %

1 date 98 29.16666667 29.16666667
2 Email Address 66 19.64285714 48.80952381
3 residence address 59 17.55952381 66.36904762
4 Title 39 11.60714286 77.97619048
5 reseller code 31 9.226190476 87.20238095
6 identity proof no 26 7.738095238 94.94047619
7 Name 17 5.05952381 100

INSE 6210: Total Quality Methodologies 11

We performed Pareto Analysis to identify major defects that occurs when
filling application form.

Justification of Pareto chart: The chart illustrates that 80% of the

problems are caused by 20% issues which are Residence address, Reseller
code and Identity proof. Here, we identified 7 key issues .The Pareto chart
helped us to select the top three issues which enable us to solve our more
than 75% of problems, thereby reducing the service time Since six sigma
project is more cost oriented, we are considering the components from cost
occurrence pareto chart for improve phase

INSE 6210: Total Quality Methodologies 12

3.2 Hypothesis Testing:-
By performing hypothesis testing we would like to know the
components which we obtained from pareto analysis is causing significant
difference or not, for this we have used Minitab to conduct two sample t-
test.
For inference to reject null hypothesis we use p value generated from
Minitab. If p value is less than significant level (95%) i.e. 0.05 we reject null
hypothesis (Ho).

Two-Sample T-Test and CI: Correct Residence

Address, Incorrect Address
Method
μ₁: mean of Correct Residence Address
µ₂: mean of Incorrect Residence Address
Difference: μ₁ - µ₂
Equal variances are not assumed for this analysis.

Descriptive Statistics
Sample N Mean St Dev SE Mean
Correct Residence Address 100 38.52 3.64 0.36
Incorrect Residence Address 100 51.27 3.12 0.31
Estimation for Difference
95% CI for
Difference Difference
-12.744 (-13.691, -11.798)
Test
Null hypothesis H₀: μ₁ - µ₂ = 0
Alternative hypothesis H₁: μ₁ - µ₂ ≠ 0
T-Value DF P-Value
-26.57 193 0.000

Here the p value is 0 i.e. less than 0.05 we reject null hypothesis so Incorrect residential address is
making significant difference.

Two-Sample T-Test and CI: Identify Proof Matched, ID proof

Mismatched
INSE 6210: Total Quality Methodologies 13
Method
μ₁: mean of Identify Proof Matched
µ₂: mean of Identify Proof Mismatched
Difference: μ₁ - µ₂
Equal variances are not assumed for this analysis.

Descriptive Statistics
Sample N Mean St Dev SE Mean
Identify Proof Matched 100 39.48 3.96 0.40
Identify Proof Mismatched 100 48.85 6.20 0.62
Estimation for Difference
95% CI for
Difference Difference
-9.368 (-10.821, -7.916)
Test H₀: μ₁ - µ₂ = 0

Null hypothesis
Alternative hypothesis H₁: μ₁ - µ₂ ≠ 0
T-Value DF P-Value
-12.74 168 0.000

Here the p value is 0 i.e. less than 0.05 we reject null hypothesis so incorrect ID Proof is making
significant difference.

Two-Sample T-Test and CI: Correct Reseller Code, Incorrect

Reseller Code
Method
μ₁: mean of Correct Reseller Code
µ₂: mean of Incorrect Reseller Code
Difference: μ₁ - µ₂
Equal variances are not assumed for this analysis.

Descriptive Statistics
Sample N Mean St Dev SE Mean
Correct Reseller Code 100 38.68 3.96 0.40
Incorrect Reseller Code 100 47.44 5.50 0.55
INSE 6210: Total Quality Methodologies 14
Estimation for Difference
95% CI for
Difference Difference
-8.764 (-10.100, -7.427)
Test
Null hypothesis H₀: μ₁ - µ₂ = 0
Alternative hypothesis H₁: μ₁ - µ₂ ≠ 0
T-Value DF P-Value
-12.94 179 0.000
Here the p value is 0 i.e. less than 0.05 we reject null hypothesis so Incorrect Reseller code is making
significant difference.

Two-Sample T-Test and CI: Correct Date, Incorrect Date

Method
μ₁: mean of Correct Date
µ₂: mean of Incorrect Date
Difference: μ₁ - µ₂
Equal variances are not assumed for this analysis.

Descriptive Statistics
Sample N Mean St Dev SE Mean
Correct Date 100 38.44 3.80 0.38
Incorrect Date 100 49.63 2.85 0.28
Estimation for Difference
95% CI for
Difference Difference
-11.190 (-12.127, -10.253)
Test
Null hypothesis H₀: μ₁ - µ₂ = 0
Alternative hypothesis H₁: μ₁ - µ₂ ≠ 0
T-Value DF P-Value
-23.56 183 0.000

Here the p value is 0 i.e. less than 0.05 we reject null hypothesis so Incorrect date is making
significant difference.

INSE 6210: Total Quality Methodologies 15

3.3 Affinity Diagram:-

An Affinity Diagram is a tool that gathers large amounts of ideas,

opinions, and issues and organizes them into groupings based on their
natural relationships The Affinity process is often used to group ideas
generated by Brainstorming.

Poor Service
Quality

Residence
Incorrect
Address Reseller Code Invalid Date
Identity Proof
Mismatch

1.Valid Document
proof of address 1.Use
Govertment 1.Use Code
2.Providing Point Issued ID 1.Providing
of Contact Signing Standard Format
2.Credit File 2.Open Support
3.Use of A 2.Double Check
3.Using Third Desk before
ddress Passing Party Agents 3.Use Software Submission
4.Address Tools
Standardization

Figure 4: Affinity Diagram

3.4 Root Cause Analysis-

Root cause is the condition that allows or causes a defect to occur
and when corrected properly, permanently prevents recurrence of the
defect in the product or service generated by the process. It uses a 5 why
technique which forces one to redefine a problem statement as a chain of
causes and defects to identify the source of the symptoms by asking why,
ideally five times.
We have analysed the root cause for Residential address mistake and found
that due to improper training of staffs there is an occurrences of mistakes.

INSE 6210: Total Quality Methodologies 16

 Why? There is mistake in Residential Address

•Because of operators carelessness

Why? Operator has done mistake

•Due to Mismatch of details with given docs?

Why? There is a mismatch?

•Because of less experience in data entry.

Why? They have less experience

•Because of improper training.

Why? There is improper training?

•Due of training period to employes was less period.

Figure 5: Root cause Analysis of Mistake in Residential address

3.5 CAUSE AND EFFECT:-

It is also called Ishikawa or fishbone diagram. It is a graphical
method for hypothesizing a chain of causes and effects and for sorting out
potential causes and organizing relationships between variables. Its
common uses are product design, quality defect prevention and to identify
potential factors causing an overall effect. Each reason for imperfection is a
source of variation. Here, we performed Root Cause Analysis for ID
mismatch.

Figure 6: Cause and effect diagram for mismatched ID proof number

INSE 6210: Total Quality Methodologies 17

4.0 IMPROVE PHASE:

Improvement Measures
 A checklist has been introduced at the end of the application to
prevent errors which are happening in CAF.
 Previously there was no format for date, so Poka yoke is introduced
to mention the date in DDMMYY format, if anything is wrongly
entered it will be highlighted with red colour(Poka Yoke)
 Increase the training period
Results after improvement
Number of defects =102
Sample size=200
Number of defect opportunities per unit in the sample=7
Total number of defect opportunities in the sample= 200*7=1400

Defects for Million Opportunities (DPMO)

Number of defects
𝐷𝑃𝑀𝑂 = ∗ 1000000
Total number of defect opportunities in the sample

102
= ∗1000000=72857
1400

serial No type of defects number of defects No of Defects after improvement

1 date 98 25
2 Email Address 66 20
3 residence address 59 17
4 Title 39 13
5 reseller code 31 9
6 identity proof no 26 9
7 Name 17 9

INSE 6210: Total Quality Methodologies 18

Through this charts it is clear that the values are greater than 1 and
process is capable.

Two-Sample T-Test and CI: Processing Time, Processing

... improvement
Method
μ₁: mean of Processing Time
µ₂: mean of Processing Time after improvement
Difference: μ₁ - µ₂
Equal variances are not assumed for this analysis.

Descriptive Statistics
Sample N Mean St Dev SE Mean
Processing Time 200 38.42 8.43 0.60
Processing Time after improvement 200 33.12 4.60 0.32
Estimation for Difference
95% CI for
Difference Difference
5.299 (3.964, 6.634)
Test
Null hypothesis H₀: μ₁ - µ₂ = 0
Alternative hypothesis H₁: μ₁ - µ₂ ≠ 0

INSE 6210: Total Quality Methodologies 19

 T-Value DF P-Value
7.81 307 0.000
Here the p value is less than 0.5 so we reject null hypothesis. Therefore
there is significant difference after improvement.

5.0 CONTROL PHASE:

We have used X bar-S chart control charts to monitor the process times
post 20 days after the improvements and C chart to analysis defects.
Before Improvement: Most of points are close to the mean and shows
consecutive trend so we can infer out of control condition.

X bar-S Chart after improvement

INSE 6210: Total Quality Methodologies 20

It is clear from the chart that the processing time is below 48(UCL) so the
process is in control and metric goal is achieved. (< 48 hours)
C- Charts for Defects:

Histograms for number of defects:

Before Improvement:

INSE 6210: Total Quality Methodologies 21

After Improvement:

No of Defects after improvement

30

25

20

15

10

0
date Email residence Title reseller identity Name
Address address code proof no

Through this charts we can observe that there is significant decrease in

number of defects in each components after improvement.
Number of charts before improvement = 336
Percentage of defects = (336/1400)*100 = 24 %
After Improvement
Percentage of defects = (102/1400)*100 = 7.28 %, which is less than 10 %
So, metric goal of our project is achieved

INSE 6210: Total Quality Methodologies 22

6.0 Conclusion:
List of tools used in each phase
Define Project Charter, Sipoc, Process flow chart
Measure DPMO, Process Capability Analysis, R and R analysis
Analyse Pareto, Hypothesis testing, Affinity diagram, Root
Cause Analysis, Cause and End Effect Diagram.
Improve Process Capability Analysis, Hypothesis testing.
Control Control Charts, Histograms.

 The process is under control with the processing times less than
48hours. (Here process time refers to, the time to process application
to till the activation times provides service to customer).
 % of defects was decreased to less than 10 (7.28%). Previously it was
24%.
 Hence our Metric Goals for CTQ’s was achieved.

INSE 6210: Total Quality Methodologies 23

7.0 References:
 Class lectures.
 An Introduction to Six Sigma and Process Improvement, Second
Edition by James R Evans, William M Lindsay, South Western
Cengage Learning, 2015.
 Minitab Manual for David Moore and George Mccabe’s by Michael
Evans
 Introduction to Statistical quality control 6th edition Douglas C.
Montgomery

INSE 6210: Total Quality Methodologies 24

8.0 Appendix
Excel Data Reports

Data sheets INSE

6210.xlsx

R&R inse proj.xlsx

pareto.xlsx

Minitab files

INSE 6210: Total Quality Methodologies 25