LSSGB (Simplilearn, 2014) - Lesson - 2. Define

Lean Six Sigma Green Belt
Lesson 2—Define
Copyright 2014, Simplilearn, All rights reserved.

Objectives
After completing ● Explain various components of project selection

this lesson, you will
● Describe customer data collection methods
be able to:
● List various means of project documentation
● Discuss risk analysis and management
● Describe project management and planning tools
● Explain the concepts used in evaluation of project performance
● Describe the deliverables of Lean Six Sigma project
Copyright 2014, Simplilearn, All rights reserved. 2

Define
Topic 1—Project Identification

Project Selection
The five steps for selecting a project are as follows:
Identify Identify the Evaluate the Select the right Review the
organizational need projects projects project project
Organization needs Identify projects Evaluate the project The project which Project will be
projects to improve that are aligned in the following meets the reviewed to ensure
and develop its with the areas: organizational alignment to the
functional areas and organizational need. ● Net present requirement is organizational
to serve and meet value selected and goals.
customer needs. ● Cost benefit ratio initiated.
● Internal ROR
● Opportunity cost
● Payback period

Process Elements
A business process has five elements: Supplier, Input, Process, Output, and Customer (SIPOC).
Supplier: Input: Process: Output: Customer:

A person or Information, Set of steps Final product A person,
organization material, or which or service, process, or
providing services transforms outcome of organization
resources to provided by the inputs the process which uses
the process the supplier into output the output
concerned

SIP—Output Interaction
One or more changes in Supplier, Input, or the Process actions (SIP) will result in a change in the
process output.
● If SIPs are stable, the output will be stable.
● Relations between SIPs and output provide a method to define possible cause-effect relationships.
● These relationships can be termed as closed-loop business systems.
Supplier Input Process Output

SIPOC—Example
SIPOC form for a call center:
Suppliers Inputs Process Output Customer

● Telecom industry ● Phone connection Opening call ● Problem solution ● User (existing
● IT industry ● Computer or customer)
system Customer verification ● New customer
● Head set
Probing customer
● Server or dialer
● CSR or TSR
Resolution
Closing

Owners and Stakeholders
The following image represents where the process owner and stakeholders are placed in the
organizational hierarchy:
Process Owner:
Responsible for the performance
and execution of the process.
Stakeholder:
People who are affected by
the organization’s actions.
Stockholders Customers Suppliers Management Employees Society

Identify Customer
Customers are the most important part of any business. A customer is someone who:
● decides to purchase;
● pays;
● consumes; and
● gets affected by a particular product or service.
It is essential to identify and understand the customer requirements so the products or services can
be designed according to these requirements.
There are two types of customers—internal and external.

Internal Customers
An internal customer is anyone within the business system who is affected by the product or the
service while it is being developed.
Needs of an internal customer Importance of an internal customer
● Necessary tools, training, and specific instructions ● Activities directly impact final customer
● Provision of company newsletters, projects, ● Activities affect the next process in the system
storyboards, etc. ● Affects the quality of the end product
● Awards and recognition
The satisfaction levels of the internal customers can be improved in various ways: increased internal
! communication through company newsletters, awards, recognition, constant trainings, and competitive
environment.
External Customers
External customers are not a part of any organization; however, they are impacted by it. They are the
source of revenue for any business system and are therefore extremely important.
There are three types of external customers:
Intermediate customers End users Affected parties
They purchase a particular They purchase a particular They do not purchase the
product or service for their product or service.
product or service, modify or
personal use. However, they are impacted
assemble, repack, and resell by it.
the product or service to an
end user.

Building a Business Case
A Business Case is needed to provide details to the management and team members on the
business values to be achieved by conducting a project.
Explore the improvements and opportunities while documenting a business case along with the
high level view on what business output is anticipated and by when.
A business case must capture the following:

● Business outcome;
● Effort needed;
● Set of resources and their availability; and
● Timeline.

Building a Business Case—Details
The tangible benefits from the Lean Six Sigma project needs to be articulated using following factors:
● Amount of cost reduction,
● Ways to reduce turnaround time,
● Focus on quality by reduction in defects, and
● Ways to achieve customer satisfaction.
The business case is presented to stakeholder with the following details:

● Executive summary brief
● Strategic linkage

Financial Evaluation and Benefits Capture
The potential financial benefits from the Six Sigma project are captured by looking at the cost and
both hard and soft savings.
Hard Savings Soft Savings

Actual reductions in money being spent, such as: Intangible benefits such as:
● Reduced budgets, ● Increase in customer satisfaction,
● Fewer employees, ● Employee morale,
● Additional revenue opportunities, ● Brand uplift and repeat customer.
● Effort reduction,
● Rework and scrap reduction, and Also includes the benefits arising from:
● Reduction in work force. ● Less inventory and reduced testing,
● Lower cycle times and improved yields,
● Lower rework rates and reduced scrap.

Financial Evaluation and Benefits Capture—Sample
The given excel sheet is used to capture monthly costs and benefits to get a full picture of the cost
involved and the benefits realized.
This row captures all the cost that is incurred In this row, calculate the net value (Benefits –
month over month. Cost for every month).
Criteria/Factors M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Total

Cost
Benefits
Net (Monthly)
Cumulative
This row captures the benefits expected to be In this row, capture the monthly data and add
realized. the data to get a cumulative view of benefits
up to that month.
Positive Effects of Project on Customers
The most important aspect of any process improvement project is the customers. Following are the
positive impacts of the project on both types of customers:
Effects on internal customer Effects on external customer
● High level of motivation ● Solution to problems

● High level of job satisfaction ● Better product
● Undertake additional roles and responsibilities ● Requirements are effectively met
● Focus on delivering their responsibilities ● Improved customer service
● Improved team bonding ● Customer satisfaction

Define
Topic 2—Voice of the Customer

Collect Customer Data
Collecting data from customers is very essential as it helps one consider the levels at which these
customers impact the business. Customer data or feedback is collected from internal and external
customers. Collecting customer data helps:
● to fill the gaps and improve the various business processes in the organization;
● to define a good quality product as perceived by the customer;
● to identify qualities that make the competitor’s product or service better; and
● to identify factors that provide a competitive edge to the product or service.
Popular and common methods are surveys conducted through questionnaires, focus groups, individual
! interviews with the customers, and direct feedback from customers through call center data, emails, and
feedback forms.
Questionnaire
Questionnaires can be given in the form of a survey. It is a method of deriving feedback from
individuals though structured questions, either personally or over emails, telephone, etc.
Following are the steps in the process:
Define the Pick a Develop a

Scope of the survey Compilation
survey group methodology questionnaire
Initially plan the Plan the Depending on the Develop a brief, Scan the
scope of the participants time, budget, and professional, and questionnaires
survey. Make a list required for the demography of neat and develop a
of all the points survey. the participants, questionnaire to report.
that need to be decide on a survey encourage
covered. methodology. effective
participation.
Advantages and Disadvantages of Questionnaire
Some advantages and disadvantages of questionnaires are listed below:
Advantages Disadvantages
● Low-cost approach ● Incomplete results and unanswered questions

● Phone response rate: 70–90% leading to a lack of clarity
● Faster results ● Mail response rate: 20–30%
● Analysis of mail questionnaires requires few ● During phone surveys, the interviewer may
trained resources influence the interviewee

Telephone Survey vs. Web Survey
The popular methods of survey are the telephone survey and web survey.
Telephone Survey Web Survey
● This is used for general survey and when sample ● This is used when survey is targeted at a specific
size consists of generic population. set of people and when the sample size is easily
● It is expensive and is conducted in limited time. accessible through the Internet.
● Clarification of some answers is possible. ● It is low cost and respondents get enough time.
● Open-ended questions can be asked. ● Clarifications for answers are not possible.
● More respondents respond. ● Open-ended questions cannot be asked.
● There might not be enough audio-video support, ● Less respondents respond.
so the data quality can be low. ● Audio and video support is possible, so the data
● Compilation & analysis of data consumes time. quality is better.
● It simplifies the compilation & data analysis of
data collected.

Focus Group
Focus group is generally a small group of three to twelve individuals who assemble for one or two
hours to explore specific topics and questions.
Preparatory stage Planning stage Session Compilation
● Identify scope of ● Finalize session ● Facilitate ● Study

focus group venue and time introductions transcription
● Analyze the ● Arrange a means ● State the agenda material
problem that for transcription and transcription ● Make notes
needs to be ● Advertise session factor involved
addressed details ● Record the
● Arrange for session
refreshments ● Retreat to an
observatory
Advantages and Disadvantages of Focus Group
Some advantages and disadvantages of focus group are listed below:
● Group interaction generates information ● Learning is subjective and cannot be generalized

● Provides in-depth responses ● Data collected is qualitative rather than
● Addresses complex questions or qualitative data quantitative
● Excellent for getting critical-to-quality definitions ● Generates anecdotes and incidents experienced
by the individuals in the group

Interview
Interview is a technique of questioning and probing an individual to gather information. It is informal

and encourages the interviewees to voice their opinion. Even though quite common for collecting
customer feedback, individual interviews can be time consuming.
Introduction and
Gather feedback Compilation
greetings
● Start the session with ● Avoid taking notes. ● After the session,
a friendly greeting. ● Display complete make a list of the
● Understand attention to what the points discussed, the
interviewee’s participant has to ideas that cropped
background, say. up, suggestions, etc.
interests, and ● Gather information
knowledge level. at all levels.
Advantages and Disadvantages of Interview
Some advantages and disadvantages of the interview technique are listed below:
● Can tackle complex questions and cover a wide ● Time consuming

range of information ● Requires a trained and experienced interviewer
● Allows use of visual aids
● Good choice when individuals don’t respond
willingly and/or accurately by phone/mail

Importance and Urgency of Various Inputs
The table shows the importance and urgency of different kinds of input.
Telephone Web
Criteria / Factors Weightage Interview
Survey Survey
Respondents’ availability 12 8 8 6
Lead data 6 8 8 9
Cost involved 20 3 9 1
Time consumption (organization perspective) 5 5 10 1
Availability of time from customer (for the survey) 5 3 10 4
Response rate of the customer 15 7 5 8
Judging the quality of data 10 1 6 10
Clarification 3 7 0 10
Visualizing feature 2 0 10 10
Compiling & analyzing data 2 3 10 3
Resource requirement 10 1 10 1
Preparation time 5 7 1 9
Accessibility to customer 5 8 8 4
TOTAL 100 471 744 522

Customer Complaints
There are pros and cons for gathering information from customer complaints.
● Availability of specific feedback directly from the ● Feedback in this method does not provide an
customer adequate sample size
● An easy option to respond appropriately to every ● May lead to process changes based on one or two
customer inputs from the customer

Product Complaint vs. Expedited Service Request
Product complaints and expedited service requests can act as inputs to the company for improving
their process.
Product Complaint Expedited Service Request
● This arises when customer is dissatisfied. ● This arises when customer is in a hurry.
● Product is not meeting customer specification. ● Service timelines are not meeting customer
Product has to be improved. requirements. Service has to be improved.
● Customer needs for product are not completely ● Customer timings need to be recalculated.
identified.

Importance and Urgency of Various Inputs
The table shows the importance and urgency of different kinds of input.
Expedited service
Factors Weightage Product complaint
request
Identifying customer need 15 8 9
Cost involved 15 4 8
Time consumption (orgn. perspective) 2 3 9
Probing the customer 10 1 10
Availability of time from customer 10 1 10
Response rate of the customer 10 1 6
Clarification from customer 8 1 6
Retaining customer 10 1 10
Compiling & analyzing data 2 4 10
Resource requirement 8 1 2
Handling customer 10 1 10
TOTAL 100 260 817
Key Elements of Data Collection Tools
Data collection tools will be selected based on the type of data to be collected. The key elements that
make these tools effective are as follows:
● Data is directly collected from the primary source, reducing the scope for miscommunication or
loss of information.
● Data is highly reliable as it is collected exclusively for the stated purpose.
● Data is captured after understanding the organizational purpose, making data relevant.
● Data is collected instantaneously when there is a requirement, making it up-to-date and valid.
● Customer requirement is accurately defined with the data.
The tools help to get enough information about customer requirement through which the process for
! improving or creating the product or service that the customer requires can be developed.

Review of Collected Data
Collected data must be reviewed to eliminate vagueness, ambiguity, and any unintended bias.
Customer feedback sheet before review Customer feedback sheet after review
● Name: ● Name:
● Gender: Male/Female ● Gender: Male/Female
● Occupation: Student/Professional ● Occupation: Student/Professional/others (please specify)
● Were sales executive supportive? Yes/No ● Rate sales executives on the below areas: (10 high–1 low)
● Was the product delivered on assured time? o Politeness
Yes/No o Ability to understand & identify problem
● Please rate overall experience between o Quick reply to queries
1 and 10 (1 lowest and 10 highest) o Overall
● Was the product delivered on assured time? Yes/No
● Please rate overall experience between 1 and 10 (1 lowest
and 10 highest)

Voice of Customer
The Voice of Customer (VOC) is a technique to organize, analyze, and profile the customer’s
requirements.
Following is an example for customer requirements while purchasing an air conditioner:
What the What the customer meant

Who is the
customer What is the When is the Where is the Why is the How is the situation
Customer?
said (VOC) need? need felt? need felt? need felt? handled now?
AC should be In the To remain fresh Uses a ceiling fan that
Sound sleep At Night
silent bedroom next morning makes a lot of noise
Uses a ceiling fan that is
Household AC should be Good In the It gets very hot
At Night not so effective in
Member efficient cooling bedroom in May-June
summer
AC should be
Affordability N/A N/A Limited Finance N/A
economic

Importance of Translating Customer Requirements
Customer requirement is the data collected from customers that gives information on what they need
or want from a process.
● Customer requirements are often high-level, vague, and non-specific.
● Customer requirements when translated into critical process requirements that are specific and
measurable are called Critical To Quality (CTQ) factors.
A fully developed CTQ has four major elements:

● output characteristic;
● Y metric;
● target; and
● specification or tolerance limits.
Critical to Quality
Critical to Quality factors are quality parameters set by the organization relating to the customers’
needs. CTQ tree is a diagram-based tool that helps develop and deliver quality products and services.
Identify Performance
Identify Critical Needs Identify Quality Drivers
Requirements
● Identify the critical needs that ● Identify the specific quality ● Identify the minimum
the product has to meet. drivers that must be in place performance requirements.
● Define the product to meet the needs. ● Satisfy the requirements for
requirements in broad terms. ● Identify all of the drivers that each quality driver to provide a
● Ask the customers directly or are important to the quality product.
brainstorm on their needs customers. ● Remember the things that may
with people in direct contact ● Understand the factors that affect your ability to deliver
with customers. are important to the these.
customers.

Quality Function Deployment
Quality Function Deployment (QFD) is a process to understand the customer’s needs and translate
them into a set of design and manufacturing requirements, while motivating businesses to focus on
its customers.
● It helps companies to design and build more competitive products in less time and lesser costs.
● It also helps you understand the following:
Areas where Where the

Customer Organization’s
most of the focus should
requirements strengths &
work is to be
weaknesses
be done

Phases of QFD
Quality function deployment involves four phases. The output of a phase is the input of the next
phase.
Customer Input Product Planning Output Technical

Requirements Requirements
Key Parts Output Input

Product Design
Characteristics
Input Output
Key Process
Process Planning
Operations
Input
Process Control
Output
Establishing process control plans, maintenance
plans, and training plans to control operations

Structure of QFD
Quality function deployment or House of Quality (HOQ) comprises six steps:

Step 1—Customer Requirements
The first part of the HOQ matrix is Customer Requirements.

● This is a documented version of the customer’s
requirements for a product.
● Customer requirements box is known as WHATS.
● Inputs are collected through direct conversation with the
customers.
● List of customer inputs must be structured before it enters
HOQ.
● The organization can also collect customer requirements
by brainstorming with people who work with customers
directly.
Customer Requirements—Importance Weightage
Customer requirements prioritization measures for each customer requirement are gathered from the
questionnaire and AHP.
● High priority requirements are rated 1 and low priority requirements are rated 0.
● For every requirement, calculate the sum of customers who voted it as high priority.
● Calculate the percentage of these customers.
Customers
Customer Requirements Sum % Sum
1 2 3 4 5
1 Lasts a long time 1 0 1 0 0 2 18.2%
2 Inexpensive 1 0 1 1 1 4 36.3%
3 Protects hood 0 1 1 1 0 3 27.3%
4 Doesn’t rust 1 1 0 0 0 2 18.2%
Totals 11 100%
Step 2—Planning Matrix
The second part of the HOQ matrix is Planning Matrix.

● This provides a measure of customer satisfaction with the
existing products.
● It is used to rate the industry competitors on each of the
customer requirements or ‘WHATS’.
● It helps the organization to get an overview of their
performance when compared with industry competitors.
● 5-scale rating is used.

Step 3—Technical Requirements
The third part of the HOQ matrix is Technical Requirements.

● It is also known as Engineering Characteristics or Voice of
the Company.
● This section describes products in terms of the company.
● QFD team identifies all the measurable characteristics of
the product which are related to customer requirements.
● It helps to identify the minimum performance
requirements that the organization must satisfy for each
WHATS.
● Organizational factors that affect the ability to deliver the
desired high quality product need to be listed.
Step 4—Inter-Relationships Matrix
The fourth part of the HOQ matrix is Inter-Relationships

Matrix.
● This section forms the main body in the HOQ matrix.
● This section translates customer requirements into
technical characteristics of the product.
● The QFD team identifies the significance of these inter-
relationships.
● The level of inter-relationship is weighted on a scale.
● Each level is assigned a score that is agreed by the QFD
team.

Step 5—Roof
The fifth part of the HOQ matrix is Roof.

● This speaks about the impact of HOW’s on WHATS’s.
● This identifies where the technical requirements of the
product support or obstruct each other.
● QFD team considers the pairing of the technical
requirements to form this matrix.
● If improving one requirement leads to deterioration—
trade-offs exist—Minus symbol is entered.
● If improving one requirement leads to improvement of
the technical requirement—Tick or Plus symbol is
entered.
Step 6—Targets
This summarizes the conclusions drawn from the data from

the entire matrix and team discussions.
● Technical Priorities: Each inter-relationship weighting is
multiplied by overall weighting from the planning matrix.
● Competitive Benchmarks: These show the relative
technical position of the existing product and identify the
target levels of performance to be achieved in a new
product.
● Targets: This is a final output of HOQ matrix and is a set
of engineering target values to be met by the new
product design.
Post-HOQ Matrix
The output of the first HOQ matrix can be the first stage of the first QFD phase.

Define
Topic 3—Project Management Basics

Problem Statement
The first step of project initiation is defining the problem

statement.
A problem statement should:
Gap Required State
● be a clear and concise description of the problem;
● identify and specify the observed gap in performance
by setting the current baseline and measuring the gap Actual State
against customer needs; and

● be quantifiable with metrics.
! The problem statement cannot contain solutions or causes for the problem.

Project Charter
A project charter is a written document that defines a team’s mission, scope of operation, objectives,
time frame, and consequences for the project. It is a formal approval from the senior management to
start the project. A project charter includes:
● measurable objectives to be achieved from the project;
● organizational and operation boundaries of the project; and
● top management support and commitment.
Write Review Approve
A Green Belt writes The project charter is The Black Belt is

the problem reviewed by a Black responsible to get the
statement and project Belt. Champion’s approval
charter. for the project charter.

Project Charter Sections
Some of the major sections of a project charter are as follows:
● Project name and description

● Business need (problem statement)
● Project manager’s name
● Project purpose or justification, including ROI
● Stakeholder requirements
● Broad timelines
● Major deliverables
● Constraints and assumptions
● Summary budget

Project Plan
A project plan is the final approved document which is used to manage and control the various
processes within a project and ensure seamless project execution. The project manager uses the
project charter as an input to create a detailed project plan.
Some of the major sections of a project charter are as follows:
● Project management approach and scope statement

● Work breakdown structure (WBS)
● Cost estimates and schedule
● Performance baselines and major milestones
● Key or required staff
● Open or pending decisions
● Key risks

Deliverables of a Lean Six Sigma Project
According to the Lean Six Sigma project plan:

● The deliverables must be documented at all the phases of the project;
● They are planned and documented in the define phase and are reviewed by the management;
● The deliverables are then tracked and delivered by project team, within the stipulated time along
with the relevant information;
● The project team reviews the project status with the management at the end of each phase; and
● On the basis of the review, the feedback and guidance are provided by the leadership team.

Deliverables of a Lean Six Sigma Project—Details
The high level deliverables expected of the Lean Six Sigma project phases are as follows:
Measure
Define phase Analyze phase Improve phase Control phase
phase
● Form the Cross- ● Identify the key ● Analyze the data ● The team reviews of ● Standardize the
functional team measures and processes the data collected processes across
● Document the ● Collect and plot the ● Perform correlation occurs the organization.
project charter data and causation ● Perform FMEA to ● Develop the control
(along with SIPOC, ● Identify the process analysis design the solution charts
VOC, CTQs, variation in the data ● Quantify the and plan for ● Implement
benefits, and ● Analyze the process gaps and improvements monitoring plans
timeline) measurement sources of variance for the project
system ● Identify the ● Establish the
● Baseline the opportunities for response plan
process sigma level improvement ● Transfer ownership
● Close the project

Pareto Chart
Pareto chart, also known as ‘eighty-twenty rule’ or ‘vital few,

trivial many,’ is a histogram depicting the frequency of
occurrence of events.
● It plots all the causes for defects in a product or service.
●
●
Values are represented in descending order by bars.
Cumulative total is represented by the line.
80/20
● 80% of the effects come from 20% of the causes.
Thus, Pareto chart narrows the scope of the project, or

problem solving, by identifying the major causes affecting
quality.
Pareto Charts—Example
A hotel receives plenty of complaints from its customers and the hotel manager wishes to identify the
key areas of complaints.
Cause Number Percentage Cumulative

Cleaning 35 54.69% 54.69%
Check-in 19 29.69% 84.38%
Pool timings 4 6.25% 90.63%
Minibar 3 4.69% 95.31%
Room
2 3.13% 98.44%
service
Other 1 1.56% 100.00%
Total 64 100.00%

Risk
Risk is an uncertain event or consequence that will probably occur during a project.
● Risk impacts at least one of the four main project objectives (time, cost, quality, and scope).
● Risk can be positive and enhance the success of the project as well as negative and pose a threat
to a project’s success.
Terms used in risk analysis and management:

● Risk probability: The likelihood that a risk will occur is called risk probability. To assess any risk is to
assess the probability and impact of the risk.
● Issue: Issue is the occurrence of a risk.
● Risk consequences: Risk consequences are the effects on project objectives if there is an
occurrence of a risk or issue.
Risk Analysis and Management
Risk analysis and management is crucial to the success of a project.

Risk analysis is a five-step process:
Prioritize and Monitor and

Identify risk Evaluate risk Implement
prevent control
Potential risks are Identified Identified risks are The identified The whole project
identified using potential risks are prioritized based counter measures will be monitored
qualitative evaluated using on their RPN are implemented. and controlled so
techniques like the quantitative number. Counter that the risk and
interview, methods under 3 or prevention its impact are
brainstorming, criteria— measures for the under control.
and check sheets. occurrence, risk are
severity, and brainstormed.
detection.
Elements of Risk Analysis
Some elements of risk analysis are as follows:
Elements Description
Qualitative method Interviews, check lists, and brainstorming—used to identify potential risks.
Quantitative
Used to evaluate the cost, time, and probabilistic combination of individual uncertainties.
method
Feasibility The study of the project risk.
Potential impact Determining the impact of potential risks on a project.
RPN RPN of a failure is the product of its probability of occurrence, severity, and detectability.
Avoiding risk If the potential impact is huge, then avoiding the risk is the best option.
Mitigating risk The loss from mitigating a risk is much less than loss from temporarily avoiding the risk.
If a risk cannot be avoided or mitigated, then it has to be accepted. The risk will be accepted if
Accepting risk
it doesn’t greatly impact the cost, time, and product objective.

Benefits of Risk Analysis
Benefits of risk analysis are as follows:

● Identified risk can be mitigated, transferred, or accepted.
● When risk is identified in a task, slack time is provided as a buffer. Thus identifying risks helps in
setting up actual timeline for a project.
● Identifying risks helps in setting realistic expectations from the project by communicating the risk
probability and consequence to stakeholders.
● Contingency plans can be developed for identified risk. The project team is then well prepared to
work on the issue, thereby reducing the impact of the risk.

Risk Assessment Matrix
The potential risks of a project are assessed using the risk assessment matrix.

Six Sigma Team and their Responsibilities
The following roles assist the smooth execution of a Six Sigma project:
Roles Responsibility
Executive sponsor Source or conduit for project resources, usually the recipients of the benefits the project will produce
Process owners Work with the Black Belts to improve their respective process, provide functional expertise
Champions Upper level managers that control and allocate resources to promote process improvements
Master Black Belt Consultant who offers expertise in the use of Six Sigma tools and methodologies to team leaders
Black Belts Leaders of individual Six Sigma projects, a mentor to Green Belts by educating them in Six Sigma tools
Green Belts Lead project teams working in their areas of expertise
Executive Manages and leads the team to ensure smooth working of tasks, has the power to execute decisions
Coach Trains, mentors, teaches, and guides the team when required
Facilitator Acts as a guide and helps the team to understand their common objective
Sponsor Supports the event or the project by providing all the required resources
Team member Contributes to the performance of the team and actively participates to fulfil project objectives
Project Closure
Every project requires closure because without a formal closure process, project teams can fail to
recognize the end, and then the project can drag on, sometimes at great expense.
Project closure ensures the following:

● Outcomes match the stated goals of the project.
● Customers and stakeholders are happy with the results.
● Critical knowledge is captured.
● The team feels a sense of completion.
● Project resources are released for new projects.

Goals of Project Closure Report
The project closure report is created to accomplish the following goals:

Affinity Diagram
Sticky paper
The affinity diagram method is employed by an Workers
unkind Don’t like
Pay is too the people
individual or a team to solve unfamiliar problems low Lighting
is poor
and when the consensus of the group is necessary. Hours are Air is
too long Stuffy Can’t live
on wage Too
● Each member writes down ideas and opinions on Uncomfortable
Repetitive
Work is not a
room
challenge
sticky notes. Each note can have a single idea.
● All the sticky notes are pasted on a table or wall.
● All the sticky papers are arranged according to Poor Poor Work Poor Lack of Header
Compensation Environment Relationships Motivation Cards
categories or thought patterns. Pay is too Lighting Don’t like Work is not a
low is poor the people challenge
● Each category is named with a header card Hours are Uncomfortable Workers Too
too long room unkind Repetitive
capturing the central idea of that category. Can’t live Air is

on wage Stuffy
● A boundary is drawn around them.

Interrelationship Diagram
The interrelationship diagram is a technique

developed to illustrate the relationship Customer Focus
Lack of
between ideas in more complex situations. Lack of Quality
Strategy Focus
● Each member writes down ideas and

Inadequate No Standard Responsibility
Training Time TQM Not clear
opinions on sticky notes. Each note can Method
have a single idea. Lack of Knowledge of

Quality Improvement Lack of
Communication of
● All the sticky notes are pasted on a table information
Confusion of
or wall. Committees without
organization Lack of TQM
Commitment by
● A cause-effect arrangement of cards is top managers
constructed by drawing an arrow between

the causes and the effects of the cause.
Tree Diagram
The tree diagram is a systematic approach

to outline and identify the tasks and Espresso temperature
Hot but not too hot Req A1
methods needed to solve a problem to Driver 1 Steamed milk temperature
Req A2
reach a predefined goal. Fitness of grind of the coffee beans
Delighted with cappuccino Strong coffee flavor Req B1
● Note: The objective is noted on a card
Need Driver 2 Amount of ground coffee
and placed on the far left side of the Req B2

Correct amount Type of sweetener
of sweetness
board. Req C1
Driver 3 Amount of sweetener
● Three different solutions are furnished Req C2
to achieve the goal.

● Solutions to each issue are provided.

Define
Topic 4—Management and Planning Tools

Matrix Diagram
Matrix diagrams show the relationship between objectives and methods, results and causes, tasks
and people, etc. They:
● provide information about the relationship;
● help determine the strength of relationships between a grid of rows and columns;
● provide importance of task and method elements of the subject; and
● help in organizing a large amount of inter-process related activities.

Types of Matrices
The following are five types of matrix diagrams:
Compares one list against another, with one set of elements on the x-axis and
L Type Matrix
another along the y-axis
Compares one list against the two others, in pairs, with two sets of elements on the
T Type Matrix
y-axis which are split by a set of elements on the x-axis
Compares four lists, each against two other lists, in pairs, with two sets of elements
X Type Matrix
on both the x and the y axes
Compares three lists, each against the other in pairs, two L type matrices joined at
Y Type Matrix the y axis
C Type Matrix Compares three lists against one another, a combination of two L type matrices
joined in the y axis in a three dimensional space

Defect per Unit
Defect per unit (DPU) is the average number of defects per unit of a product.
Total number of defects

Defect per Unit (DPU) =
Total number of units
Q Calculate DPU for the matrix shown below.
Defects per unit 0 1 2 3 5

Units 70 20 5 4 1
A Defect per Unit (DPU) =

1 20 +2 5 +3 4 +5(1)
=
47
= 0.47
70+20+5+4+1 100

Throughput Yield
Throughput Yield (TPY) is the number of acceptable pieces at the end of a process divided by the
number of starting pieces, excluding scrap and rework. TPY is used to measure a single process only.
If DPU is known, TPY can be calculated using the following formula:
Throughput Yield (TPY) = e−DPU
Defect per Unit DPU = −log e (TPY)

Rolled Throughput Yield
Rolled Throughput Yield (RTY) is the probability of the entire process producing zero defects. It is
important as a metric when a process has excessive rework.
● Total Defects per Unit (TDPU) is defined for a set of processes. RTY is calculated using the following
formula when the Total Defects per Unit (TDPU) is known:
Rolled Throughput Yield (RTY) = e−TDPU

Total Defects per Unit (TDPU) = −log e (RTY)
● RTY is the product of each process’s First Pass Yield (FPY) when the defectives are known. FPY is
the number of products which pass without any rework over total number of units.
Total number of units − Number of Defectives units Total number of quality products
First Pass Yield (FPY) = =
Total number of units Total number of units
Rolled Throughput Yield RTY = FPY1 ∗ FPY2 ∗ FPY3 ∗ ⋯ ∗ FPYn

FPY and RTY—Example
Q A company has three processes: A, B, and C. Given below is the data.

Process Input parts from the supplier Input parts that passed inspection Reworked parts
Process A 100 85 5
Process B 90 80 5
Process C 85 85 0
The output from process C is sent to the customer. Calculate the FPY and RTY.
A First Pass Yield for Process A =

Total number of quality products
=
85
100
= 0.850
Total number of quality products 80
First Pass Yield for Process B = = = 0.889
Total number of units 90
Total number of quality products
First Pass Yield for Process C = =1
Rolled Throughput Yield (RTY) = FPY1 ∗ FPY2 ∗ FPY3
Rolled Throughput Yield RTY = 0.850 ∗ 0.889 ∗ 1 = 0.75
Rolled Throughput Yield RTY = 75%

Define
Topic 5—Business Results for Projects

Defect per Million Opportunities
Defect per Million Opportunities (DPMO), or Non-Conformities per Million Opportunities (NPMO), is a
measure of process performance. It standardizes the number of defects at the opportunity level and
allows comparison of the processes with different complexities.
Total number of defects

Defect per Million Opportunities (DPMO) = Total number of opportunities ∗ 106
Where, Total number of opportunities = Units * Number of opportunities per unit
Q There are 5 units with 5 defect opportunities each. The total number of defects are 8. Calculate DPMO.
A Total number of opportunities = Units * Number of opportunities per unit = 5 * 5 = 25 total opportunities
Total number of defects 8
Defect per Million Opportunities (DPMO) = Total number of opportunities ∗ 106 = 25 ∗ 106 = 320,000

Cost of Quality
Cost of Quality (COQ) is the cost incurred by a process because it cannot consistently make a perfect
product.
The four types of COQ are as follows:
Preventive Cost Appraisal Cost Internal Failure Cost External Failure Cost
Cost incurred in Cost incurred to test a Cost associated with Cost associated with
preventing a failure product for quality defects identified defects after a product
conformance before a product reaches the customer
Example: Training and
improvement programs Example: Testing, reaches the customer Example: Warranty,
audits, and inspection Example: Rework and returned products, or
scrap lost reputation

Quiz

QUIZ
Which of the following is an incorrect description of QFD?
1
a. QFD converts customer requirements into design specification.
b. QFD is an iterative process.
c. QFD is similar to project management.
d. QFD identifies risk areas.

QUIZ
Which of the following is an incorrect description of QFD?
1
a. QFD converts customer requirements into design specification.
b. QFD is an iterative process.
c. QFD is similar to project management.
d. QFD identifies risk areas.
Answer: c.
Explanation: QFD focuses on identifying the ‘voice of the customer’, whereas Project
management focuses on implementation.

QUIZ
What is Rolled Throughput Yield?
2
a. The number of products which pass without any rework
b. The probability of the entire process producing zero defects
c. A measure of process performance
d. The number of acceptable pieces at the end of a process

QUIZ
What is Rolled Throughput Yield?
2
a. The number of products which pass without any rework
b. The probability of the entire process producing zero defects
c. A measure of process performance
d. The number of acceptable pieces at the end of a process
Answer: b.
Explanation: Rolled Throughput Yield is the probability of the entire process producing zero
defects.

QUIZ
Identification of external customer is important because:
3
a. It ensures a smooth product recall.
b. It helps identify customer requirements.
c. It ensures higher profit.
d. It eliminates futile advertisements.

QUIZ
Identification of external customer is important because:
3
a. It ensures a smooth product recall.
b. It helps identify customer requirements.
c. It ensures higher profit.
d. It eliminates futile advertisements.
Answer: b.
Explanation: A company will be successful only if it meets the needs of the customers better
than the competitors. Hence we need to identify the customers to gather their
requirements.
QUIZ
Which of the following are not stakeholders?
4
a. Owners or stockholders
b. Potential suppliers
c. Potential competitors
d. Contract workers

QUIZ
Which of the following are not stakeholders?
4
a. Owners or stockholders
b. Potential suppliers
c. Potential competitors
d. Contract workers
Answer: c.
Explanation: The relevant stakeholders in any project are the stockholders, management,
employees, suppliers, and customers.

QUIZ
What is the main difference between risk analysis and risk management?
5
a. There is minimal difference between risk analysis and risk management.
b. Risk analysis includes risk handling while risk management includes risk monitoring.
c. Risk analysis refers to tools and risk management deals with consent.
d. Risk analysis evaluates risks, while risk management is a more inclusive process.

QUIZ
What is the main difference between risk analysis and risk management?
5
a. There is minimal difference between risk analysis and risk management.
b. Risk analysis includes risk handling while risk management includes risk monitoring.
c. Risk analysis refers to tools and risk management deals with consent.
d. Risk analysis evaluates risks, while risk management is a more inclusive process.
Answer: d.
Explanation: Risk management is a complete process, while risk analysis is more specific
and deals with evaluation of complex risks.

QUIZ
Which Matrix diagram illustrates relationships in three planes?
6
a. L type
b. T type
c. X type
d. C type

QUIZ
Which Matrix diagram illustrates relationships in three planes?
6
a. L type
b. T type
c. X type
d. C type
Answer: d.
Explanation: C type Matrix diagram illustrates relationships in three planes. L type, T type,
and X type are drawn on two planes.

QUIZ
Which of the following is not a Cost of Quality?
7
a. Preventive cost
b. Opportunity cost
c. Internal failure cost
d. External failure cost

QUIZ
Which of the following is not a Cost of Quality?
7
a. Preventive cost
b. Opportunity cost
c. Internal failure cost
d. External failure cost
Answer: b.
Explanation: There are four types of Cost of Quality: preventive cost, appraisal cost, internal
failure cost, and external failure cost.

QUIZ The tangible benefits from the Lean Six Sigma project needs to be articulated in the
8 following terms, except:
a. Cost Reduction
b. Reduce Turnaround Time
c. Defects Reduction
d. Six Sigma Certification

QUIZ The tangible benefits from the Lean Six Sigma project needs to be articulated in the
8 following terms, except:
a. Cost Reduction
b. Reduce Turnaround Time
c. Defects Reduction
d. Six Sigma Certification
Answer: d.
Explanation: The tangible benefits of Lean Six Sigma includes cost reduction, reducing
turnaround time, and reducing defects. Six Sigma Certification is not a tangible process
improvement.
QUIZ Financial evaluation of the Lean Six Sigma project will include all of the following,
9 except:
a. Cost Reduction and/or Avoidance
b. New customers acquired
c. Reduction in rework and scrap
d. Effort reduction

QUIZ Financial evaluation of the Lean Six Sigma project will include all of the following,
9 except:
a. Cost Reduction and/or Avoidance
b. New customers acquired
c. Reduction in rework and scrap
d. Effort reduction
Answer: b.
Explanation: While performing financial evaluation, the focus is on the cost reduction
and/or avoidance and the benefits due to the reduction in the effort and rework and scrap.
The new customers acquisition cannot be directly attributed in the financial evaluation.
QUIZ
Which of the following is not a part of hard savings?
10
a. Reduced budgets
b. Fewer employees
c. Additional revenue opportunities
d. Employee morale

QUIZ
Which of the following is not a part of hard savings?
10
a. Reduced budgets
b. Fewer employees
c. Additional revenue opportunities
d. Employee morale
Answer: d.
Explanation: Hard savings include reduced budgets, fewer employees, and additional
revenue opportunities. Employee morale is a part of soft savings.

QUIZ
Who are the people affected by the organization’s actions?
11
a. Stakeholders
b. Process owners
c. Suppliers
d. Management

QUIZ
Who are the people affected by the organization’s actions?
11
a. Stakeholders
b. Process owners
c. Suppliers
d. Management
Answer: a.
Explanation: Stakeholders are the people who are affected by the organization’s actions.

QUIZ
Data collection tools will be selected on what basis?
12
a. Customers
b. Products
c. Type of data
d. Suppliers

QUIZ
Data collection tools will be selected on what basis?
12
a. Customers
b. Products
c. Type of data
d. Suppliers
Answer: c.
Explanation: Data collection tools will be selected based on the type of data to be collected.

QUIZ
What is the first step of project initiation?
13
a. Defining the problem statement
b. Creating QFD structure
c. Translating customer requirements
d. Preparing project closure report

QUIZ
What is the first step of project initiation?
13
a. Defining the problem statement
b. Creating QFD structure
c. Translating customer requirements
d. Preparing project closure report
Answer: a.
Explanation: The first step of project initiation is defining the problem statement.

QUIZ
Which of the following defines the number of defects observed in one unit?
14
a. DPU
b. DPMO
c. RTY
d. FPY

QUIZ
Which of the following defines the number of defects observed in one unit?
14
a. DPU
b. DPMO
c. RTY
d. FPY
Answer: a.
Explanation: DPU is an important business measure because it defines the number of
defects observed in one unit.

QUIZ Which of the following standardizes the number of defects at the opportunity level and
15 allows comparison of the processes with different complexities?
a. DPU
b. DPMO
c. RTY
d. FPY

QUIZ Which of the following standardizes the number of defects at the opportunity level and
15 allows comparison of the processes with different complexities?
a. DPU
b. DPMO
c. RTY
d. FPY
Answer: b.
Explanation: DPMO standardizes the number of defects at the opportunity level and allows
comparison of the processes with different complexities.

Summary
Here is a quick ● Project selection includes identifying organizational need, identifying the projects, and
recap of what we evaluation of the projects.
have learned in this
● SIPOC is a macro-level map drawn in the define phase.
lesson:
● Quality Function Deployment (QFD) is a process to ensure that the customer’s wants and
needs are heard and translated into technical characteristics.
● A business case highlights the problem area and opportunity along with the expected
business outcomes.
● Financial evaluation helps in evaluating and documenting a project from end to end,
from both cost and benefits perspective.

Summary (contd.)
Here is a quick ● Risk analysis includes identification, evaluation, prioritization and prevention of risk,
recap of what we implementation, and monitoring and controlling of risk.
have learned in this
● Cost of Quality (COQ) is the cost incurred by a process because it cannot consistently
lesson:
make a perfect product.
● Rolled Throughput Yield (RTY) is the probability of an entire process producing zero
defects.
● Defect per Million Opportunities (DPMO), or Non-Conformities per Million Opportunities
(NPMO), is a measure of process performance.
● Deliverables are expected from a Lean Six Sigma project at every phase, and they help us
document the expectations and keep the project on track.

THANK YOU

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Lean Six Sigma Green Belt

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After completing ● Explain various components of project selection

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The five steps for selecting a project are as follows:

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Supplier: Input: Process: Output: Customer:

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Supplier Input Process Output

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SIPOC form for a call center:

Suppliers Inputs Process Output Customer

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Stockholders Customers Suppliers Management Employees Society

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Needs of an internal customer Importance of an internal customer

Intermediate customers End users Affected parties

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A business case must capture the following:

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The business case is presented to stakeholder with the following details:

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Hard Savings Soft Savings

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Criteria/Factors M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Total

Effects on internal customer Effects on external customer

● High level of motivation ● Solution to problems

● Focus on delivering their responsibilities ● Improved customer service

● Improved team bonding ● Customer satisfaction

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Following are the steps in the process:

Define the Pick a Develop a

Some advantages and disadvantages of questionnaires are listed below:

● Low-cost approach ● Incomplete results and unanswered questions

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Telephone Survey Web Survey

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Preparatory stage Planning stage Session Compilation

● Identify scope of ● Finalize session ● Facilitate ● Study

Some advantages and disadvantages of focus group are listed below:

● Group interaction generates information ● Learning is subjective and cannot be generalized

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Interview is a technique of questioning and probing an individual to gather information. It is informal

● Can tackle complex questions and cover a wide ● Time consuming

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Product Complaint Expedited Service Request

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What the What the customer meant

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A fully developed CTQ has four major elements:

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Areas where Where the

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Customer Input Product Planning Output Technical

Key Parts Output Input