Lecture Combined

Lean Six Sigma Green Belt
Certification Course
Course Introduction
What Is Lean Six Sigma?
In a competitive, universal market, every organization strives for continuous improvement as

its clientele is attuned to rapidity and quality.
RAPIDITY
QUALITY
To realize this goal, two continuous improvement methodologies, Lean and Six Sigma, were
brought together to form Lean Six Sigma.
Lean Six Sigma is a management approach to business improvement.
MANAGEMENT APPROACH BUSINESS IMPROVEMENT EXCEPTIONAL RESULTS
LEAN SIX SIGMA

Market Potential
Lean Six Sigma professionals are currently in high demand as they are adept at driving business
solutions with their knowledge of problem solving and a basic understanding of business.
Problem solving Basic understanding of business

Benefits of Course Certification
Obtaining a Lean Six Sigma Green Belt certification will prove that you have the skillset to deploy
Lean Six Sigma projects within your area of expertise.
Skillset to deploy Lean Six Sigma projects
Implement the Lean methodology

By learning about an improvement process called DMAIC, tools, and statistical analysis techniques
combined with Six Sigma’s focus on improving quality.
DMAIC Tools and statistical techniques Six Sigma quality

Apart from being a versatile certification which opens up various career paths, it will provide you
with the tools and knowledge required to be a key player in crucial projects.
Tools Knowledge
Key Features of the Course
2 Test papers on ASQ 27+ hours of high-quality

and IASSC each eLearning content
6 modules
1 complete project
5 lessons
40 hours of interactive
4 hands-on industry-based
instructor-led live online
projects for practice
sessions
Course Overview
DMAIC Six Sigma and

Organizational Goals
Projects (optional) End-of-Course

assessments
Course Overview
80+%
Course Overview
Online Classroom Flexi-Pass
Teaching Assistance
Requirements to Complete the Course
SUBMIT A PROJECT Complete any one project
At least 80% on the online exam

Simplilearn Support
EMAIL www.simplilearn.com
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SUPPORT Simplitalk Live Chat
Six Sigma and Organizational Goals
Learning Objectives
By the end of this lesson, you will be able to:
Identify the Six Sigma process and tools
Explain the impact of Six Sigma in an organization
Measure organizational performance

Introduction
The glass is half The glass is bigger

Pessimist than it needs to be. Six Sigma
empty.
Practitioner
The glass is full with

The glass is half full.
water and air.
Realist
Optimist
Value of Sigma
Introduction to Quality
Quality is defined as meeting the requirements of the customer.
Q
?
Making changes to meet Meeting customer’s

Customer’s expectations
the expectations expectations
The Journey of Quality
1930s
Statistical Process 1960s
Control Quality Circles 1987
• ISO 9000
• Baldrige
Award Criteria
1988
1990s 1996
Benchmarking
Balanced Re-engineering
Milestones in the Scorecard (BSC)
history of Quality
Quality Management Gurus
Leaders and quality management consultants who set the foundation of modern quality
improvement and strategic change are:
• 14 key principles for • Statistical Process Control • Quality trilogy

management charts • Top management involvement
• Seven wastes • Assignable cause vs. chance
• Plan-Do-Study-Act cycle cause
• System improvement • Statistics for quality
management
W. Edwards Deming Walter A. Shewhart Joseph M. Juran
• Ishikawa’s cause-and-effect • Quality loss function concepts • Crosby’s 14 steps to quality

diagram • Signal-to-noise ratio improvement
• Company-wide quality control • Robust design • Do It Right First Time
• Quality circle • Experimental design methods • Zero Defect
Kaoru Ishikawa Genichi Taguchi Philip Crosby

Meaning of Six Sigma
Sigma (σ) is a Greek letter Six Sigma is a business

used in the statistical world strategy to change company
to represent a measure of culture with top
variability. management support.
The Six Sigma process is an 5

Sigma level is a measure of
improvement method of 4
performance for a business
quality principles and 3
processes or service.
techniques. 3
1
Six Sigma and Quality
How Six Sigma impacts the quality of products and services.
Quality
Six Sigma process Increased profits

Milestones in the Six Sigma Journey
Bill Smith and Mikel Motorola saved $16

Allied Signal saved
Harry at Motorola billion cumulatively
$0.5 billion with the
started the Six Sigma with the use of Six
use of Six Sigma
initiative Sigma
1986 1995 1998 2000 2001
Jack Welch initiated Six

Sigma at General GE saved $2 billion
Electric (GE) to annually with the use of
improve the entire Six Sigma
business system
Purpose of Six Sigma
Business Customer
methodology satisfaction
Customer-
centric
$ Shareholder
value
Fact-based Employee
approach commitment
Organizational Benefits of Six Sigma
Eliminates the root cause of Reduces rework by getting it

problems and defects in a process right the first time
Creates robust products and

services Addresses the key business
requirement
Reduces process variation and

waste
Helps gain competitive
advantage
Ensures customer satisfaction
Achieves the organizational

goals
Achieves process standardization
Benefits to an Organization
Organizations successful with Six Sigma:
1 2
Have proven systematic problem-solving
methodology
5 3
4
Focus on the customer
Achieve long-term improvements

The Six Sigma Process
Each phase has

• An over-arching objective
• Specific deliverables that need to be completed
Define Measure Analyze Improve Control

Document the problem and the desired outcome

Obtain baseline process performance levels

Identify key root causes for process variation

Develop, test, and implement solutions

Monitor key factors and maintain the gains

The Six Sigma Tools
• SIPOC • Measurement • Simple linear • Brainstorming • Control charts

• Voice of Customer System Analysis regression (SLR) • Piloting • Control plan
(VOC) (MSA) • Pareto charts • Failure Modes and • Measurement
• Critical to Quality • Control charts • Fishbone diagram Effects Analysis System Analysis
(CTQ) • Process capability • Failure Modes and (FMEA) (MSA)
• Quality Function • Normality plots Effects Analysis • Design of
Deployment (QFD) (FMEA) Experiments
• Failure Modes and • Multi-vari charts (DOE)
Effects Analysis • Hypothesis testing
(FMEA)
• Cause and Effect
(C&E) matrix
 Some of the tools are not required in every Six Sigma Green Belt (GB) project.
Applying the Six Sigma DMAIC Process
The problem
Ideal temperature for a cup

A cup of coffee is either too of coffee should be
hot or too cold. between 160F (71C) to 180F
(82C).
Customers’ feedback Java House Coffee Management’s feedback

Applying the Six Sigma DMAIC Process
The solution
DMAIC
process Average
Average USL
LSL USL and tools LSL 170F
170F 180F
160F 180F 160F
Poor process capability Excellent process capability
Key Terms Used in Six Sigma
Specification limits
Opportunity
Defect
Defective
Rolled Throughput Yield (RTY)
Defects per Million Opportunity (DPMO)

Specification Limits Meaning
Opportunity Limits set by a customer representing the range of variation the customer can
tolerate or accept
Defect
Explanation with regard to the Java House coffee example
Defective
The Java House Coffee customers had an acceptable coffee temperature range
of 160F to 180F
Rolled Throughput Yield
(RTY)
Defects per Million

Opportunity (DPMO)
Opportunity Every chance for a process to deliver an output characteristic that is either “right”
or “wrong” as per the customer specifications
Defect
Defective
The coffee temperature was the only output characteristic identified from the
customer, which would represent one opportunity per cup of coffee
(RTY)
Defects per Million

Opportunity (DPMO)
Every result of an opportunity that does not meet customer specifications and
Opportunity does not fall within Upper Specification Limit (USL) and Lower Specification Limit
(LSL)
Defect
Defective
When a cup of coffee does not fall within the specified temperature limit
(<160F or >180F)
(RTY)
Defects per Million

Opportunity (DPMO)
Results when the entire unit is identified has a nonconforming product

Opportunity
regardless of the number of defects observed
Defect
Defective
Every cup of coffee fails to meet the customer requirements
Example: Temperature and taste
(RTY)
Defects per Million

Opportunity (DPMO)
Opportunity Measure of process efficiency expressed and indicates percentage of units that
are defect free. Also referred to as Yield value
Defect
Defective
The percentage of cups of coffee that meet customers expectations
(RTY)
Defects per Million

Opportunity (DPMO)
Opportunity Also known as Non-Conformities per Million Opportunities (NPMO), it is a

measure of process performance
Defect
Defective
For 100 cups of coffee measured, the ratio of defects observed to total number
of opportunities is multiplied by one million.
(RTY)
Defects observed
Defects per Million DPMO= *1,000,000
Opportunity (DPMO) total number of opportunities
Sigma Conversion Table
The Six Sigma Level is a measure of quality performance for a business process or service.
Sigma Level DPMO Yield/Accuracy (%)

Virtual perfection
6 3.4 99.99966%
5 230 99.977%
Good 4 6,210 99.38%
3 66,800 93.32%
2 308,000 69.15%
Improvement needed
1 690,000 30.85%
Quality Measures and Real-World Impact
What would be the consequence in the U.S. if a quality goal of 4.5 Sigma Level or 99.90% yield is accepted?
4.5 Sigma
Level
Or
99.90 Yield
Quality Measures and Real-World Impact
1 hour of unsafe drinking 2 unsafe plane landings per

water every month day at O’Hare International
500 incorrect surgical Airport in Chicago
operations each week
50 new born babies dropped

at birth by doctors each day
16,000 pieces of mail

lost by the U.S. postal
service every hour
22,000 checks deducted
from the wrong bank
accounts each hour
32,000 missed heartbeats
per person, per year
Goals and Six Sigma Projects
Meaning of Process
A process is a series of steps designed to produce a product and/or service as required by the customer.
Input (x)
Process f(x)
Feedback
Output (y)
Focussing on the inputs is like driving a car. It transforms organizations from a pattern of driving
forward by looking in the rear view mirror to driving forward by looking ahead on the road.
Components of a Business Process
$
Input (x)
1
Process f(x)
Feedback
3 2
Output (y)
A process will have inputs (x) and delivers outputs (y). Therefore, y = f(x). Any change in the
inputs causes change in the output
Six Sigma and the Business System
1 2
5 3 Implement a process or a set of processes
Business system 4
design
Process inputs must be at the right place and

at the right time
How Six Sigma Impacts a Business System Design
A business system design:

Six Sigma improves the
● Collects and analyzes
business system by:
data to ensure
• Continuously removing
continuous
defects in processes
improvement
• Sustaining the changes
● Includes processes or
procedures
Structure of a Six Sigma Team
Top
executives
Six Sigma
champions
Six Sigma
Master Black
Six Sigma Belts (MBB)
Black Belts
Six Sigma (BB)
Green Belts
(GB)
Top
executives
Six Sigma
champions
Six Sigma
Master Black
Black Belts
Six Sigma (BB)
Green Belts
(GB)
Six Sigma green belts support the black belts by working on the project and performing day-to-day jobs.
Top
executives
Six Sigma
champions
Six Sigma
Master Black
Black Belts
Six Sigma (BB)
Green Belts
(GB)
Six Sigma black belts apply strategies to specific projects, and lead and direct teams to execute projects.
Top
executives
Six Sigma
champions
Six Sigma
Master Black
Black Belts
Six Sigma (BB)
Green Belts
(GB)
Six Sigma master black belts train and coach black belts, green belts, and various functional leaders of
the organization.
Top
executives
Six Sigma
champions
Six Sigma
Master Black
Black Belts
Six Sigma (BB)
Green Belts
(GB)
Six Sigma Champions:

• Identify and scope projects and develop strategy
• Identify and coach master black belts
Top
executives
Six Sigma
champions
Six Sigma
Master Black
Black Belts
Six Sigma (BB)
Green Belts
(GB)
Top Executives:
• Lead change and provide direction
• Own the Six Sigma initiatives
Organizational Drivers and Metrics
Key Business Drivers
Financial accounting
1 2
5 3
Physical assets Internal or business Customer satisfaction Learning and growth

processes
BSC (Balanced Scorecard)

Benefits of BSC
Actionable
objectives
Prioritizes Framework for

projects and performance
initiatives measurement
Internal
Financials
processes
Clarifies
Integrates
Customer Learning vision and
strategies
satisfaction and growth mission
Aids
Provides
continuous
feedback
improvement
Four Perspectives in BSC
By using BSC, an organization maps its strategic objectives to the specific metrics of performance.
Financial
• Financial objectives
• Tracking financial
success
Customer Vision and Internal business process

Customer-facing objectives Strategy Operational goals for
internal processes
Learning and growth

• Intangible factors of
success
• Learning from
experience
Developing a BSC
Interactions between perspectives or business units are considered to prevent uneven optimization.
1 2 3 4
Strategic
Measures
Objectives Targets Initiatives
to achieve each
Long-term for each measure to achieve each target
objective
organizational goals
Not every initiative identified should be worked as a Six Sigma project, but
some could be.
Four-box Model vs. Strategy Maps
Alternatives to BSC
Financial Financial Increase Increase

Lower cost
profitability revenue
Improve
Lower wait
Customer customer
Vision time
Internal business retention
Customer and
Strategy process
Increase
Internal Lower cycle
process
Process time
efficiency
Learning and growth Improve Improve tools

Learning knowledge and and
and Growth skills technology
Four-box model of BSC Strategy maps

Impact to the Organization
Needs Goals
Organization
Personal goals
Timelines
Work goals Resources

How the use of BSC strategy maps affect an organization?
Cause
Effect
BSC
Strategy
Maps
Benefits of BSC Strategy Maps
The BSC enables the organization to improve in the following ways:
Allows each business unit to work

toward a common organizational
Easy communication goal
Transparent and meaningful

Facilitates understanding at all communication of performance
levels of the organization
Effective creation of performance

report against a balanced scorecard
Better management of information in an
organization
Key Takeaways
Quality is defined as the degree of excellence of a product or

service and conformance to customer requirements
Six Sigma is a business methodology that employs a customer

centric and fact-based approach to reduce process variation
and waste
There are five phases in the DMAIC process: Define, Measure,

Analyze, Improve, and Control
The five levels in the Six Sigma team are: Six Sigma Green
Belts, Six Sigma Black Belts, Six Sigma Master Black Belts, Six
Sigma Champions, and Top Executives
Key Takeaways
Apart from financial accounting, the BSC also considers

internal processes, customer satisfaction, and learning and
growth
Strategy map depicts a chain of cause and effect relationships

between the perspectives and the relationships that are
represented by interlinked objectives
Knowledge Check
Knowledge
Check Customers have asked for products from an IT company to be delivered within two
weeks. In this case, a product delivery that takes longer than two weeks would be
1 considered as:
A. An opportunity
B. A defect
C. A specification limit
D. Defective
Knowledge
Check Customers have asked for products from an IT company to be delivered within two
weeks. In this case, a product delivery that takes longer than two weeks would be
1 considered as:
A. An opportunity
B. A defect
C. A specification limit
D. Defective
The correct answer is D
A product delivery is a unit that could be right or wrong.

Knowledge
Check
Which of the following phase is not included in the Six Sigma process?
2
A. Define
B. Analyze
C. Control
D. Implement
Knowledge
Check
Which of the following phase is not included in the Six Sigma process?
2
A. Define
B. Analyze
C. Control
D. Implement
The Six Sigma Process is known as DMAIC, which consists of Define, Measure, Analyze, Improve, and Control.
Knowledge
Check
What is a defect?
3
A. When there is a limit to the customer specification
B. When an output meets the customer’s expectations
C. When an opportunity does not meet customer expectations
D. When there is a non-conforming part or unit

Knowledge
Check
What is a defect?
3
A. When there is a limit to the customer specification
B. When an output meets the customer’s expectations
C. When an opportunity does not meet customer expectations
D. When there is a non-conforming part or unit
The correct answer is C
A defect is defined as an opportunity that does not meet customer requirements or expectations.
Knowledge
Check
Which of the following perspectives belong to the BSC approach?
4
A. Customer, supplier, input, and output
B. Process, people, technology, and policies
C. Financial, customer, internal processes, and learning and growth
D. Internal processes, customer, financial, and objectives

Knowledge
Check
Which of the following perspectives belong to the BSC approach?
4
A. Customer, supplier, input, and output
B. Process, people, technology, and policies
C. Financial, customer, internal processes, and learning and growth
D. Internal processes, customer, financial, and objectives
The four perspectives in a Balanced Score Card are financial, customer, internal processes, and learning and growth.
Lean Principles in the Organization
Learning Objectives
Define Lean
Explain the theory of constraints
Describe value stream mapping

Scenario
ZARA is one of the world’s most valuable fashion retail brands, worth $9.4 billion.
Lean
Business Hold Low Stock Update Collections Twice a Week
Model
Data from
2,000 stores
 Sent to
 Designers
distribution analyze the
in 88
center data and take
countries
actions
Lean Concepts
What Is Lean?
Lean refers to creating more value to customers with fewer resources.
+ = Zero Waste
Optimizing the Process Eliminating NVAs Increasing Flow
If ‘Quality’ is the word to describe Six Sigma, then ‘Speed’ is the word to describe Lean.
Benefits of Lean
MYTH
Reduce Cost
Lean can only be
applied in
manufacturing
areas
Reduce Cycle Time
TRUTH
More Throughput
Lean concepts
can be applied
in any business
and in any
Increase Productivity process
Lean vs. Six Sigma
Lean and Six Sigma – 2 different principles – 1 powerful CI methodology
Goal 1
Goal 2
Goal 3
Goal 4
Lean Six Sigma

Efficiency Effectiveness
✓ Identifying value ✓ Breakthrough processes
✓ Removing unnecessary steps ✓ Identifying root cause
✓ Improving speed ✓ Variation reduction
Lean Six Sigma

Business Improvement
Transformation
History of Lean
Various forms like flow

interchangeable parts,
1450s automatic assembly line ,
automatic defect detection, etc. Henry Ford fully integrates the
1913
entire production process
Toyota’s Kiichiro Toyoda and

1930
Taiichi Ohno invents the TPS
The term “Lean” was coined by James P Womack in the book “The Machine that Changed the World”.
Principles of Lean
Map the Value Enable Seek

Identify Value Create Flow
Stream Pull Perfection
Principles of Lean

Identify the end customer for a product or service.

Know how the customer perceives the products or the service.
Principles of Lean

Visualize the flow of the end-to-end process

Principles of Lean

Flow is created by minimizing the frequency of stopping and starting

Principles of Lean

Products and services are not rendered till customers have placed an order
Principles of Lean

Achieve the complete elimination of waste

Principles of Lean

Identify the
Visualize the Address Improved
requirement Order smart
flow of the process processes to
of the watches only
smart watch elements to better identify
customer when
manufacturin complete customer
from a smart required
g process orders quickly needs
watch
3 Ms of Lean
Muda /
Waste
3Ms
Muri / Mura /
Overburden Unevenness
The Lean Wastes
Waste or muda refers to anything in the process that does not add value for the customers.
D O W N T I M E
The Lean Wastes
D O W N T I M E
Defect/Repair/Mistakes
Efforts caused by rework, scrap, and incorrect information
✓ Shipping package to ✓ Not ordering the

✓ Rework or scrap wrong address correct labs
✓ Poor quality material fit ✓ Providing wrong service ✓ Patients receiving a

to client misdiagnosis
The Lean Wastes
D O W N T I M E
Overproduction
Producing more than what customers need or producing too soon
✓ Producing 10 products ✓ Delayed discharges

when 5 were needed ✓ Duplication of effort
✓ Unnecessary diagnosis
✓ Large batch sizes procedures
The Lean Wastes
D O W N T I M E
Waiting
The wasted time in waiting for the next step in a process
✓ Waiting for lab results

✓ Idle time and delays ✓ Meetings overrun
✓ Patients waiting in
✓ Long change overs ✓ Customers on hold emergency department
The Lean Wastes
D O W N T I M E
Non-Utilized Resources
When employees are not engaged/supported or there is a mismatch of talent
✓ Ambiguous roles and

responsibilities
✓ Lack of sharing of ideas
✓ Unused resources
✓ Wrong resource to improve
allocation
The Lean Wastes
D O W N T I M E
Transportation
The unnecessary transportation of products
✓ Unnecessary hand-offs ✓ Moving patients from

✓ Moving finished goods and loop backs room to room
to warehouse instead
of shipping department ✓ Shipping hard copies ✓ Moving information by
that need signatures email
The Lean Wastes
D O W N T I M E
Inventory
Excessive finished or intermediate goods stored
✓ Buffer and safety stock ✓ Invoices waiting to be

inventory paid ✓ Overstocked
consumables/supplies
✓ Material between ✓ Excessive multi-tasking
operations
The Lean Wastes
D O W N T I M E
Motion
More than required movement by people to complete a task
✓ Looking for materials

and equipment
✓ Bending and twisting by ✓ Looking and searching
operators for data ✓ Nurses walking from
station to patients
room
The Lean Wastes
D O W N T I M E
Excessive Processing
Doing more work than required by customer
✓ Handwork of polishing ✓ Excessive quality review

and deburring ✓ Performing a surgery
✓ Duplicate entries when a non‐invasive
✓ Unnecessarily tight procedure would work
tolerances
Lean Tools and Techniques
Poka-Yoke Heinjunka
5S Standardized
Tools and Work
Techniques
Kanban Takt Time
Kaizen
JIT
Poka-Yoke Heinjunka
Poka-Yoke or error proofing is used to design
defect prevention into the production processes
with the goal of achieving zero defects. Standardized
5S
Work
Example: A car that will not lock the doors, if it
sense the car key is inside without the driver.
Kanban Takt Time
Kaizen
JIT
Poka-Yoke Heinjunka
5S eliminates waste that results from a poorly Standardized

5S
organized work area. Work
Example: The organized approach to labors that

Kanban ensure tools are in known location.
Takt Time
Kaizen
JIT
Poka-Yoke Heinjunka
Kanban is a method used to regulate the flow of

5S Standardized
goods in order to eliminate waste from inventory
Work
and overproduction.
Example: Relying on signal cards to indicate when

Kanban more materials to be ordered. This is used to Takt Time
replace physical inventories.
Kaizen
JIT
Poka-Yoke Heinjunka
5S Standardized
Work
Kaizen or continuous improvement refers to a
culture where employees work together
Kanban proactively to achieve consistent incremental
Takt Time
improvements.
Example: Toyota has a Kaizen culture and this is

Kaizen desired in any Lean organization.
JIT
Heinjunka is a form of production scheduling that

Poka-Yoke purposely manufactures in comparatively smaller Heinjunka
batches. It reduces inventory and lead times of
each product type or variant.
5S Standardized
Example: Zara’s ability to change and update Work
clothing styles and provide to customers quickly
Kanban Takt Time
Kaizen
JIT
Poka-Yoke Heinjunka
Standardized Work documents the procedures’

best practices Standardized
5S
Work
Example: Procedures and job aids
Kanban Takt Time
Kaizen
JIT
Poka-Yoke Heinjunka
5S Takt Time refers to the pace of production in Standardized

which production with customer demands are Work
well aligned.
Kanban Example: Knowing the frequency in which a

Takt Time
product needs to be completed to meet the
customers’ demands and help pace production
Kaizen
JIT
Poka-Yoke Heinjunka
5S Standardized
Work
JIT is a philosophy. It produces necessary units in
correct quantities and required quality at the right
Kanban time. It relies on Lean tools like Kanban,
Takt Time
Heinjunka, Standard Work, and Takt Time.
Example: Dell uses JIT principles to provide short

Kaizen lead times to customers
JIT
Theory of Constraints (TOC)
Theory of Constraints or TOC is a problem solving methodology for identifying the most important
limiting factor, known as the constraint that stands in the way of achieving a goal and then
systematically improving that constraint until it is no longer the limiting factor.
Systematically improve
Identify constraint
constraint
Theory of Constraints (TOC)
Theory of Constraints Lean Thinking
Goal Increase profit by increasing throughput Increase profit by adding value from
customers’ perspective
Measures Throughput, inventory, and operating Cost, lead time, and value-added
expense percentage
What to Change? Constraints Eliminate waste and add value
How to Implement Five-step, continuous process Five-step, continuous process

the Change? emphasizing acting locally emphasizing thinking globally
Theory of Constraints: Benefits
Increased profit
Fast improvement
Improved capacity
Reduced lead times
Reduced inventory
Theory of Constraints: Five Steps
Identify goal and the constraint
Exploit the constraint
Subordinate to the constraint
Elevate constraint performance
Find next constraint

Example of TOC
Q
Kind Heart Hospital’s emergency department is not able to keep up with
daily demand. On average, the hospital receives 120 patients per day.
Department Capacity to Process/Day

Registration 200
Triage 180
Medical team 90
Discharge 160
How can the Theory of Constraints methodology be used to improve this

process?
Example of TOC
A The constraint is the Treatment process
Bring in temporary workers
Keep process before and after the constraint running at steady pace
Implement solutions to improve Treatment process
Continue the cycle and look for the next constraint

Value Stream Mapping
What Is a Value Stream Map?
What does the current

process look like?
Supplier
How does value flow through

the process?
What are the sources of the

waste in the value stream?
What areas of the process
 need the most improvement?
Customer
What steps in the process
add value and what steps do
not add value?
Types of Value Stream Maps
Value Added MAXIMIZE
Non-Value Added ELIMINATE
Required Non-value Added REDUCE

Value Stream Map Elements
Symbols and Processes

Value Stream Analysis
Ideal Future
State
Transit Future
State(s)
Stable Current
State
Current
State
Key Takeaways
Lean focuses on maximizing customer value while

minimizing or even eliminating waste.
Lean and Six Sigma are two different principles or

methodologies that combine to form and create one
powerful continuous improvement methodology.
The common lean tools and techniques are Poka-Yoke, 5S,

Kanban, Kaizen, JIT, Heinjunka, Standardized Work, and
Takt Time.
Key Takeaways
The Theory of Constraints is a methodology for identifying

the most important limiting factor that stands in the way of
achieving a goal and systematically improving it.
Principles of Lean are to identify value, map the value

stream, create flow, enable pull, and seek perfection.
Value Stream Map is a visualization tool to map the flow and

identify all activities involved in the value chain.
Knowledge Check
Knowledge
Check
Which of the following statement is true?
1
A. Lean focuses on reducing variation and Six Sigma focuses on speed
B. Lean focuses on revenue and Six Sigma focuses on costs
C. Lean focuses on speed and Six Sigma focuses on reducing variation
D. There is no difference
Knowledge
Check
Which of the following statement is true?
1
A. Lean focuses on reducing variation and Six Sigma focuses on speed
B. Lean focuses on revenue and Six Sigma focuses on costs
C. Lean focuses on speed and Six Sigma focuses on reducing variation
D. There is no difference
Lean is focused on elements that prevent products from reaching the customer quickly and Six Sigma is about
ensuring consistency in products; however both have an strong emphasis of focusing on the customer.
Knowledge
Check In which Lean waste will you notice an operator sitting idle or working slowly while a
2 machine cycles through various operations until the process is complete?
A. Inventory
B. Waiting
C. Over-processing
D. Excessive processing
Knowledge
Check In which Lean waste will you notice an operator sitting idle or working slowly while a
2 machine cycles through various operations until the process is complete?
A. Inventory
B. Waiting
C. Over-processing
D. Excessive processing
The correct answer is B
In Waiting, the activities do not occur when they are supposed to.
Knowledge
Check A production team wants to make it easier and faster to find tools needed to perform
3 tasks. Which Lean tool would they use?
A. 5S
B. Takt Time
C. JIT
D. Poka Yoke
Knowledge
Check A production team wants to make it easier and faster to find tools needed to perform
3 tasks. Which Lean tool would they use?
A. 5S
B. Takt Time
C. JIT
D. Poka Yoke
The correct answer is A
5S is focused making sure the work area is clean and organized.

Knowledge
Check
Which of the following is NOT a Lean waste?
4
A. Overproduction
B. Motion
C. Kanban
D. Inventory
Knowledge
Check
Which of the following is NOT a Lean waste?
4
A. Overproduction
B. Motion
C. Kanban
D. Inventory
Kanban is not one of the Lean wastes

Knowledge
Check
What is the major objective of the Theory of Constraints?
5
A. Improve profit by eliminating bottlenecks
B. Reduce variation in the process
C. Produce products more quickly
D. Impress customers by meeting demand

Knowledge
Check
What is the major objective of the Theory of Constraints?
5
A. Improve profit by eliminating bottlenecks
B. Reduce variation in the process
C. Produce products more quickly
D. Impress customers by meeting demand
The Theory of Constraints or TOC is about identifying and eliminating what is limiting an organization from meetings
its goal.
Knowledge
Check Which of the following value stream mapping activities generally include inspection
6 and testing activities?
A. Value Added
B. Non Value Added
C. Required - Non Value Added
D. Enabling value added

Knowledge
Check Which of the following value stream mapping activities generally include inspection
6 and testing activities?
A. Value Added
B. Non Value Added
C. Required - Non Value Added
D. Enabling value added
These activities do add value from the customer perspective but can be reduced or eliminated once the business has
assurance of consistent product output
Knowledge
Check
Which of the following tool or technique is used to prevent a mistake from occurring?
7
A. Kanban
B. Poke Yoke
C. JIT
D. 5S
Knowledge
Check
Which of the following tool or technique is used to prevent a mistake from occurring?
7
A. Kanban
B. Poke Yoke
C. JIT
D. 5S
Poke Yoke is about preventing errors or mistakes from occurring.

Design for Six Sigma (DFSS)
Methodologies
Learning Objectives
Explain the roadmap for Design for Six Sigma (DFSS)
List the DFSS Tools used to improve the products, services,

or processes
Introduction
60 days 5%
? What improvement methodology can be used?

Introduction
60 days 5%
! Design For Six Sigma Methodologies (DFSS)

Roadmap for Design for Six Sigma (DFSS)
Concept of Design for Six Sigma (DFSS)
QFD
FMEA
Impact of DFSS on an Organization
Entirely new product,

Customer Completely improves existing
service, or process
requirements product, service, or process
Add to existing product, service, or process lines

Types of DFSS Methodologies
Customer
requirements
Define
Goals for the
process,
product, and
Verify Measure
service
DMADV
Design Analyze
Define customer requirements and goals for the process,
product, and service.
DMADV and IDOV
Methodologies
Define
Identify
Verify Measure
Design
DMADV Validate IDOV
Optimize
Design Analyze
For existing
For new products
products or
or services
services
Explanation of DMADV
Define
Performance
Verify Measure
DMADV
Customer satisfaction
Design Analyze The performance is measured and matched to the

customer requirements or benchmark.
Define
Verify Measure
DMADV
Design Analyze
Design options are analyzed and assessed for the process,
product, or service to meet customer needs.
Define
Verify Measure
DMADV
Design Analyze
Design and implementation of new processes
Define
Performance
Verify Measure
DMADV
Design Analyze
Results that meet customer needs are verified to maintain
performance.
Explanation of IDOV
Identify
IDOV Design
Validate
Optimize
Customer needs and specifications are identified to design
the product or service.
Explanation of IDOV
Identify
Design
Validate IDOV
Optimize
Design alternative solution concepts by identifying
functional requirements, select the best fit, and predict
Sigma capabilities.
Explanation of IDOV
Identify
Design
Validate IDOV
Optimize
Optimize by calculating tolerance using statistical tools and
modeling to predict performance.
Explanation of IDOV
1 2 Identify
3
Design
Validate IDOV
Optimize
Verify the design by testing, validating, and checking

conformance to Six Sigma Standards.
DFSS and DMAIC
Similarities Differences
DMAIC
Tools improves
an existing
Six Sigma process DMAIC
levels of
focuses on
performance
one or two
customer
requirements
Six Sigma
philosophy Benchmarkin
g is crucial for
DFSS DMAIC DFSS projects
Goals and Six Sigma Projects
DFSS TOOLS
QFD
FMEA
DFSS
Quality Function Deployment (QFD)
Listen to
customers’
needs
Set
Respond to
development
the needs
targets
Customer's’ needs or
voice of the customer
Define
Prioritize
requirements
QFD House of Quality (HOQ) Structure
Roof
Technical requirements
Customer Interrelationships matrix Planning matrix

requirements
Customer
requirements
Targets
QFD House of Quality (HOQ) Structure
Roof
Correlates
organizational characteristics
Technical requirements
Lists characteristics
influenced
Customer Interrelationships matrix Planning matrix

requirements
Lists customers’ Identifies the impact of Compares our

needs organizational characteristics performance
on customers’ requirements
Targets
Identifies targets
Failure Modes and Effects Analysis (FMEA)
DFSS FMEA DMAIC
Identifies Prioritizes failure

Identifies
consequences of to see critical
possible failures
failure areas
FMEA Risk Priority Number (RPN)
FMEA Risk Priority Number (RPN) = Severity * Occurrence * Detection
1 10
Severity None Hazardous
1 10
Occurrence Remote Very high frequency
1 10
Detection Very detectable Extremely undetectable
RPN and Scale Criteria: Severity
Effect Severity of Effect Rating

Hazardous without Very high severity ranking when a potential failure mode affects safe 10
warning system operation without warning
Hazardous with Very high severity ranking when a potential failure mode affects safe 9
warning system operation with warning
Very high System inoperable with destructive failure without compromising 8
safety
High System inoperable with equipment damage 7
Moderate System inoperable with minor damage 6
Low System inoperable without damage 5
Very low System operable with significant degradation of performance 4
Minor System operable with some degradation of performance 3
Very minor System operable with minimal interference 2
None No effect 1
RPN and Scale Criteria: Occurrence
Effect Failure Probability Rating

>1 in 2 10
Very High: Failure is almost inevitable due to
this cause 1 in 3 9
1 in 8 8
High: Repeated failures due to this cause
1 in 20 7
1 in 80 6
Moderate: Occasional failures due to this cause 1 in 400 5
1 in 2,000 4
1 in 15,000 3
Low: Relatively few failures due to this cause
1 in 150,000 2
<1 in 1,500,000 1
Remote: Failure is unlikely due to this cause
RPN and Scale Criteria: Detection
Detection Likelihood of detection by Design or Process Control Ranking
Absolute Design/process control cannot detect potential cause/mechanism and subsequent failure mode 10
uncertainty
Very remote Very remote chance the design/process control will detect potential cause/mechanism and 9
subsequent failure mode
Remote Remote chance the design/process control will detect potential cause/mechanism and 8
Very low Very low chance the design/process control will detect potential cause/mechanism and 7
Low Low chance the design/process control will detect potential cause/mechanism and subsequent 6
failure mode
Moderate Moderate chance the design/process control will detect potential cause/mechanism and 5
Moderately high Moderately high chance the design/process control will detect potential cause/mechanism and 4
High High chance the design/process control will detect potential cause/mechanism and subsequent 3
failure mode
Very high Very high chance the design/process control will detect potential cause/mechanism and 2
Almost certain Design/process control will detect potential cause/mechanism and subsequent failure mode 1
FMEA Table to Plan Improvement Initiatives
How and why

Prevention of
failures
failures
happen
Potenti
Key Potential
Process al Potentia
Process Failure SEV OCC Current Controls DET RPN
Step Failure l Causes
Input Effects
Mode
What is What is In what What is the How What How often What are the existing How SOD
the the key ways impact on the severe is causes does cause controls and well can
process process does key output the effect the key or Failure procedures you
step? input? the key variables to the input to Mode (FM) (inspection and test) detect
input go (customer customer? go occur? that prevent the cause or
wrong? requirements) wrong? cause or the FM? FM?
or internal Should include an
requirements? SOP number.
Types of FMEA
Process Failure Mode Effects Analysis (PFMEA) Design Failure Mode Effects Analysis (DFMEA)
Used in the design of a new

Used on new or existing product to uncover potential
processes to uncover failures
potential failures
Aimed at identifying failure

Done in the quality planning modes effects and reducing
phase to act as an aid during them
production
Involves fabrication, Done before product is sent

assembly, transactions, or to manufacturing
services
All significant design

deficiencies are resolved
at the end of this process
Applying FMEA in a Situation
RISK
Applying FMEA in a Situation
FMEA Table
New
Process/ Sev Occ Det
Responsi Sev.
Potential Potential Potential Current Recommen bility & New New
Action New
Product Failure Effect(s) cause(s) of Design RPN ded Target Det RPN
Taken Occ (On)
Characte Mode(s) of failure (S) failure (O) Control (D) Action(s) Completi (Sn) (Dn) (RPNn)
ristics on Date
Increase the
Non- Set
set limit for Minimum
availability minimum Manage
7 2 126 regularly or limit 4 1 36
of cash in limit ment
often used increased
the ATM warning
Customer ATM
Cash
account Extremely
withdra
debited unhappy 9 9
wal from
but cash customer
ATM
not paid
Increased
Technical
Increase the limit
Network and
5 None 9 405 network and have 2 3 54
issue Manage
limit load
ment
balancing
Tips and Tricks
Plan the FMEA analysis Start the FMEA as soon

carefully. as possible.
You need knowledge of You need knowledge of You need knowledge of

systems operations to DFMEA before drawings are PFMEA before production
complete an FMEA. complete. plans are final.
Key Takeaways
DFSS is an approach that ensures a new product or service

meets customer requirements.
DMADV and IDOV are two types of DFSS methodologies.
DFSS is a process at the Six Sigma level that uses tools such
as QFD and FMEA.
QFD is a focused methodology for carefully listening to the

customers’ needs or voice of the customer.
Key Takeaways
FMEA is an approach to identify all possible failures in a

design, process, product, or service.
There are two types of FMEA: PFMEA and DFMEA.
The FMEA RPN is a measure used to quantify or assess risk

associated with a design, process, product, or service.
Knowledge Check
Knowledge
Check
Which of the following is NOT a focus area for DFSS?
1
A. New processes
B. Fixing one element of existing process
C. New products or service
D. Adding to an existing product line

Knowledge
Check
Which of the following is NOT a focus area for DFSS?
1
A. New processes
B. Fixing one element of existing process
C. New products or service
D. Adding to an existing product line
DFSS is focused on completely overhauling the process and not just one element.
Knowledge
Check
Which of the following is NOT a DFSS methodology?
2
A. IDOV
B. DMAIC
C. DMADV
D. Identify, Define, Optimize, and Verify

Knowledge
Check
Which of the following is NOT a DFSS methodology?
2
A. IDOV
B. DMAIC
C. DMADV
D. Identify, Define, Optimize, and Verify
DMAIC is not a DFSS methodology.

Knowledge
Check
Which of the following is NOT true of DFSS?
3
A. It has focuses on quality.
B. Its purpose is to design a new process that meets customer needs.
C. It fits under the Six Sigma umbrella.
D. It targets only one customer requirement.

Knowledge
Check
Which of the following is NOT true of DFSS?
3
A. It has focuses on quality.
B. Its purpose is to design a new process that meets customer needs.
C. It fits under the Six Sigma umbrella.
D. It targets only one customer requirement.
Design for Six Sigma, DFSS, ensures that all customer requirements are achieved.
Knowledge
Check
What is the expansion of FMEA?
4
A. Failure Modules and Effects Analysis
B. Failure Modes and Effects Analysis
C. Failure Median and Effects Analysis
D. Failure Modes and Effort Analysis

Knowledge
Check
What is the expansion of FMEA?
4
A. Failure Modules and Effects Analysis
B. Failure Modes and Effects Analysis
C. Failure Median and Effects Analysis
D. Failure Modes and Effort Analysis
FMEA stands for Failure Modes and Effects Analysis.

Knowledge
Check
Which of the following is NOT a section in a QFD’s HOQ matrix?
5
A. Customer Requirements
B. Roof
C. Basement
D. Planning Matrix
Knowledge
Check
Which of the following is NOT a section in a QFD’s HOQ matrix?
5
A. Customer Requirements
B. Roof
C. Basement
D. Planning Matrix
The six sections of a House of Quality (HOQ) matrix are customer requirements, planning matrix, technical
requirements, interrelationship matrix, roof, and targets.
Project Identification
Learning Objectives
List the steps for Six sigma project selection
Explain the need for benchmarking
Identify project stakeholders
Outline the importance of stakeholder analysis

Do You Know
Q What differentiates well-performing organizations from

organizations that achieve breakthrough performance?
• Good infrastructure
• Learned professionals
• Ability to identify the right project opportunities
A
The ability to identify the right project opportunities that
drive the organization forward
Project Identification
Project Selection
Identify Select the

Identify the Evaluate Review the
organizatio right
projects the projects project
nal needs project
Project Selection
Identify
Identify the Evaluate the Select the Review the
organizatio
projects projects right project project
nal need
An organization needs
projects to improve and
develop its functional
areas and to serve and
meet customer needs.
Project Selection
Identify
organizatio
nal need
Identify projects
that are aligned
with the
organizational
need.
Project Selection
Identify
organizatio
nal need
Evaluate the project in the

following areas:
 Net present value
 Cost benefit ratio
 Internal rate of return (IRR)
 Opportunity cost
 Payback period
Project Selection
Identify
organizatio
nal need
The project which

meets the
organizational
requirement is
selected and initiated.
Project Selection
Identify
organizatio
nal need
The selected project

is reviewed to ensure
if it is aligned to
organizational goals.
Benchmarking
Is compared to
Organization Industry Leaders
Benchmarking is performed heavily in DFSS projects.

Benchmarking
Process
Benchmarking
Collaborative Financial
Benchmarking Benchmarking
Competitive Performance
Benchmarking Benchmarking Benchmarking
Functional Product
Benchmarking Benchmarking
Strategic
Benchmarking
Benchmarking: Best Practices
Determine the objectives or scope of benchmarking
Set the standards and path to be followed at the initial stage
Reduce unnecessary effort and comply with the scope
Recognize the best in the industry to set a benchmark
Share the information derived from benchmarking

Process Elements
Six Sigma Projects: Prerequisites
Is there an existing process?
Is there a problem in the process?
Is the problem measurable?
Does the problem impact customer satisfaction?
Does working on the problem impact profits of the

company?
Is the root cause of the problem unknown?
Is the solution unknown?

SIPOC Model
 
Supplier Input Process Output Customer
Supplier is a person or an organization that provides inputs to the process concerned.

SIPOC Model
 
Input refers to the information, material, or services that will be transformed in the process.
SIPOC Model
 
Process refers to the set of steps that transforms the inputs into output.
SIPOC Model
 
Output is the final product or service of the process.

SIPOC Model
 
A customer is a person, process, or organization that uses or receives the output.

SIPOC Model: Process Elements Interaction
+  + 
Supplier Input Process Output
Stable SIPs = Stable Output
Relations between SIPs and output provide a method to define possible cause-effect
relationships.
SIPOC Model: Example
EXAMPLE
 
• Email request Receive Request
• Phone request
• Requester • Purchase Order
• Documentation • Requester
• IT Team • Updated Database
• Ticketing System Work Ticket • IT Team
• External Vendors • Completed Ticket
• Hardware
• Notifications
• Software
• Technical Resource Close Ticket

Business Process Improvement: Challenges
  
Challenges:
• Multiple handoffs
• Management of the flow of products or services
Owners and Stakeholders
Organizational Hierarchy
Stakeholder
Process Owner
Stockholders Customers Suppliers Management Employees Society

Effects of Process Failure on Stakeholders
Stockholders Customers Suppliers Management Employees Society
Reduction in May seek May face delay May require Will receive May experience
perceived competitor’s in receiving cost cut-down diminishing pollution due to
value for the product and their pay or wages the activities of
company find legal non-payment the organization
recourse issues
Importance and Relevance of Stakeholder Analysis
 Any change to a business process affects stakeholders
When objectives are not met, stakeholders and the organization are
negatively impacted
 There can be different reasons why a stakeholder may oppose the
change effort
Key Takeaways
The main objective of Define is to define the objective of the

project.
The five steps for selecting a project are identify

organizational need, identify the projects, evaluate the
projects, select the right project, and review the project.
Benchmarking is the process of comparing an organization’s

business processes, practices, and performance metrics with
that of industry leaders.
Key Takeaways
A business process has five elements: Supplier, Input,

Process, Output, and Customer.
The stakeholders are people who are affected by the

organization’s actions.
The process owner is responsible for the performance and

execution of the process.
Knowledge Check
Knowledge
Check Java House Coffee is comparing their products and services with a competitor. What
1 type of benchmarking is being conducted?
A. Collaborative
B. Functional
C. Product
D. Performance
Knowledge
Check Java House Coffee is comparing their products and services with a competitor. What
1 type of benchmarking is being conducted?
A. Collaborative
B. Functional
C. Product
D. Performance
Performance benchmarking is about comparing an organization’s products and services with those of its competitors.
Knowledge
Check
Why should an organization use a SIPOC to document a process?
2
A. To document every detail of the process
B. To help with project selection
C. To understand the process at a high level along with its inputs and outputs
D. To see process flow

Knowledge
Check
Why should an organization use a SIPOC to document a process?
2
A. To document every detail of the process
B. To help with project selection
C. To understand the process at a high level along with its inputs and outputs
D. To see process flow
SIPOC is used to document and understand a process at a high level and document the supplier, inputs, outputs, and
customers.
Knowledge
Check
Which of the following is NOT a requirement for Six Sigma Project?
3
A. Root Cause is unknown
B. Solution is unknown
C. Does not impact customer satisfaction
D. The problem is measurable

Knowledge
Check
Which of the following is NOT a requirement for Six Sigma Project?
3
A. Root Cause is unknown
B. Solution is unknown
C. Does not impact customer satisfaction
D. The problem is measurable
The problem should impact customer satisfaction to be worked by Six Sigma principles
Knowledge
Check
Which of the following is NOT a requirement to evaluate a project?
4
A. Internal Rate of Return
B. Net Future Value
C. Payback period
D. Cost Benefit Ratio

Knowledge
Check
Which of the following is NOT a requirement to evaluate a project?
4
A. Internal Rate of Return
B. Net Future Value
C. Payback period
D. Cost Benefit Ratio
Net Future Value a typical financial metric for project evaluation along with the other answer choices
Knowledge
Check Which of the following stakeholder is responsible for performance and execution of
5 the process?
A. Supplier
B. Process Owner
C. Management
D. Employees
Knowledge
Check Which of the following stakeholder is responsible for performance and execution of
5 the process?
A. Supplier
B. Process Owner
C. Management
D. Employees
The Process Owner is responsible for performance and execution of his or her process
Voice of the Customer
Learning Objectives
Identify the types of customers
Explain the VOC data collection methods and their importance
Explain the VOC table and its analysis

Scenario
An IT Call Center has the goal to increase its customer satisfaction rating.
It is not likely that leaders would know WHAT to improve without knowing the issues that customers
are experiencing. Therefore, we must gather the customer’s needs or requirements.
Obtaining customer feedback, such as “I want the correct answer to my questions or issues”
and “I don’t want to be transferred around” could lead to a defined requirement of “get needed
information” which is measured by the number of transfers and service times.
Focusing on a metric that has a direct relationship with the customer’s definition of satisfaction will
have a significant impact on the customer satisfaction rating. This can only be accomplished by
obtaining the Voice of the Customer.
Customer Identification and Data
Importance of Customers
Decides to
purchase
Gets
Customer Pays
affected
Consumes
Types of Customers
Internal Customers External Customers

Internal Customers
A person within the business system who is affected by the product or the service while it is
being developed
When the needs of the internal customers, especially the employees’ needs, are met,
! they are more likely to maintain higher standards of quality and improve the productivity
of the product or service.
Internal Customer: Needs
Necessary tools, training, and

Internal Customer  specific instructions
Provision of company newsletters,

 projects, storyboards, etc.
Awards and Recognitions

Internal Customer: Importance
Activities affect the next

process in the system
Internal Customer
Activities
directly Affects the
impact the quality of the
final end product
customer
External Customer: Definition
External customers are not a part of an organization but are impacted by it. They are the source of
revenue for a business system.
External
Customers
Intermediate End users

customers
Types
Customer Feedback: Importance
Internal Customers
Undertake
Focus on
High level of job additional roles Improved team
High level of motivation delivering their
satisfaction and bonding
responsibilities
responsibilities
External Customers
Requirements Improved
Customer
Solution to problems Better product are effectively customer
satisfaction
met service
Voice Of The Customer (VOC): Perceived Value
Value is the output the customer expects versus the cost to achieve
that expectation.
FUNCTION
VALUE = ----------------
COST
VOC Data Collection Plan
WHY WHAT WHEN WHERE HOW WHO

VOC Data Collection Process: Steps
Purpose of Data
Collection Exercise
• VOC Method
• Information Required
• Method of Analysis
• Date
• Time
• Frequency
• Which customers
• Location
• Data Collection
Method
• Description
Team members and

their responsibilities
Reactive vs. Proactive Data Sources
Reactive Proactive
Data Data
Sources Warranty claims, Sources
Questionnaires,
product returns,
focus groups, and
customer
interviews
complaints
Information is
Information comes
gathered from the
whether action is
customer after
taken or not
contact is initiated
Requires targeted
Used to address customer contact
immediate needs to obtain
of customers information related
to the project
Customer Complaint vs. Expected Service Request
Dissatisfied Customer is
Customer in a hurry
Expedited
Customer
Service
Complaint
Request
Customer Customer
needs are Product needs timelines to Timeline is
not well improvement be not met
identified recalculated
Proactive Data Source: Steps In The Process
Define the Pick a Develop a

Scope of the survey Compilation
survey group methodology questionnaire
✓ Time
Points to Scan
✓ Budget
be and
covered Report
✓ Demography
Proactive Data Source

Advantages
• Low cost
• 70% – 90% high phone response rate
• Faster results
• Analysis of mail questionnaires requires
few trained resources
Disadvantages
 • 20% – 30% mail response

• Phone surveys: interviewer may
influence the interviewee
• Lack of clarity
Proactive Data Source: Telephone Vs. Web Survey
General Survey Specific
Cost
  Clarification
Open-ended


Number of
respondents
 Data quality

Analysis
More Time Time Less Time
Proactive Data Source: Sample Survey
Steps to Conduct a Focus Group
Conducting
Preparatory stage Planning stage Compilation
Session
● Identify scope of ● Finalize session, ● Facilitate ● Study transcription

focus group venue, and time introductions material
● Analyze the ● Arrange a means ● State the agenda ● Make notes about
problem that for transcription and transcription key customer
needs to be ● Advertise session factor needs and
addressed details ● Record the session requirements
● Arrange for ● Retreat to an
refreshments observatory
Focus Group: Advantages
Advantages of a Focus Group ✓ Interaction generates information
✓ Provides in-depth responses
✓ Addresses more complex

questions or qualitative data
✓ Gets critical-to-quality definitions

Focus Group: Disadvantages
Disadvantages of a Focus Group

✓ Learning is subjective
✓ Data is qualitative
✓ Generates anecdotes and incidents

by individuals in the group
Proactive Data Source: Interview
✓ Interview is a technique of questioning and

probing an individual to gather information.
✓ It is informal.
✓ It encourages the interviewees to voice their
opinion.
✓ Individual interviews can be time consuming.
Proactive Data Source: Process of an Interview

Introduction and Gather Feedback Compilation
Greetings • Avoid taking notes • After session,
• Greet in a friendly • Give complete make a list of
manner attention points
• Understand • Gather
interviewee’s information
background
Proactive Data Source: Interview
Advantages Time Disadvantages

Consuming
Allows visual
Wide range of aids
information
Tackles
complex
questions
Requires a trained
and experienced
interviewer
VOC Proactive Data Collection Methods
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 and 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
Write Effective VOC Questions: Tips
Do not use leading Ask specific and

questions or words direct questions
Give Mutually Ask one question

Exclusive Choices at a time


Should the government force you to pay higher taxes?

vs.
Should the government increase taxes?


What is your age?

0-10, 10-20, 20+


What do you like to do for fun?

The respondent can take this question in too many
different directions.


How likely are you to come back and tell a friend?

These are really two questions in one.
Sample Review of Data Collection Questions
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
● Were sales executive supportive? Yes/No specify)
● Was the product delivered on assured time? Yes/No ● Rate sales executives on the below areas: (10 high–
● Please rate overall experience between 1 low)
1 and 10 (1 lowest and 10 highest) o Politeness
o Ability to understand and identify problem
o Quick reply to queries
o Overall
● Was the product delivered on assured time? Yes/No
● Please rate overall experience between 1 and 10 (1
lowest and 10 highest)
VOC Data Collection Methods: Key Methods
Direct from
primary
source
Collected for
Effective Data
Instantaneous specific
Collection
purpose
Understanding
organizational ● Customer requirement is accurately
!
purpose defined with the collected data.
Additional Voice Considerations
Voice of the Business Voice of the Process

Customer Requirements
VoC Table
What the customer meant

What the
Who is the How is the
customer What is the When is the Where is the Why is the need
customer situation handled
said (VOC) need? need felt? need felt? felt?
now?
Uses a ceiling fan
AC should be Quiet work During the
In the office To focus on work that makes a lot of
silent environment work day
noise
Uses a ceiling fan

AC should be During the Weather is very hot
Office Rep Good cooling In the office that is not so
efficient work day in May and June
effective in summer
AC should be
Affordability N/A N/A Limited finances N/A
economic
Sample analysis of VOC – AC purchase

Translating VOC to Critical-to-Value (CTQ)
VOC
Customer • High level, vague,

Requirement Non-specific
Critical-To-
• Specific and
Quality Factor
measurable
CTQ Factor: Major Elements
Output characteristic
Critical To Quality (CTQ) Factor

Y Metric
Target
Specification or Tolerance
limit
Steps to Develop CTQ Tree
Critical-to-Quality factors – Quality parameters set by the organization relating to the customers’ needs
CTQ tree – A diagram-based tool that helps develop and deliver quality products and services
Identify
Identify Critical Identify Quality
Performance
Needs Drivers
Requirements
CTQ Tree: Example
CTQ: Translation Worksheet Example 1
Service/Quality Specific Needs Project Y Output:

VOC
Issues Statement Characteristic
Customer gets
to the correct
Functionality: person the first
I am always on
Wants to talk to time Availability
hold or
the right
transferred to
person
the next person Add additional
immediately
items to the
voice menu

VOC
Customer
receives the bill
on the same date
I get invoices at Accuracy: every month
different times of Consistent Invoicing cycle
the month monthly bill time
Customer wants
the bill
consistently

VOC
Customer
receives
application on
I don’t receive requested date
Time: Delivery
the application Delivery cycle
timeliness
on time time
Customer wants
fast delivery
Quality Function Deployment (QFD): Definition
It is a process to understand the customers’ needs and translate them into a set of design and
manufacturing requirements while motivating businesses to focus on its customers
Areas where Areas where

Customer Organization’s
most of the the focus
requirements strengths and
work is to be should be
weaknesses
done
QFD: Deployment
Quality function deployment involves four phases. The output of a phase is the input of the next phase.
Customer Input Output Technical

Product Planning
Requirements Requirements
Output Input
Key Parts
Product Design
Characteristics
Input Output
Key Process
Process Planning
Operations
Input
Process Control
Output
Establishing process control plans, maintenance plans,

training plans to control operations
QFD: Six Sections
QFD: Post-HOQ Matrix
QFD: Example
Key Takeaways
There are two types of customers: internal and external.
Customer feedback is important for the success of any project.
Data collection methods can be reactive or proactive.
The VOC is a technique to organize, analyze, and profile the

customer’s requirements.
A CTQ tree is used to visually show the relationship between

the VOC needs, Drivers, Requirements, and CTQ.
The QFD method is a 4-phase iterative process.

Knowledge Check
Knowledge
Check There are several methods and considerations to collect VOC data, but what is the
primary purpose of VOC data collection?
1
A. To satisfy the internal customer’s expectations of the product
B. Find out what the customer likes and does not like about the products
C. Identify the customers needs so we can translate them to CTQs
D. To satisfy the external customer’s expectations of the service

Knowledge
Check There are several methods and considerations to collect VOC data, but what is the
primary purpose of VOC data collection?
1
A. To satisfy the internal customer’s expectations of the product
B. Find out what the customer likes and does not like about the products
C. Identify the customers needs so we can translate them to CTQs
D. To satisfy the external customer’s expectations of the service
The primary purpose of VOC data collection is to obtain as much information as necessary from the customer to
define Critical to Quality (CTQ) requirements.
Knowledge
Check
When should a team use a telephone survey over a web survey?
2
A. Anytime
B. Target customer group is easily accessible over the Internet
C. A high response rate is needed
D. Time availability of customer is a concern

Knowledge
Check
When should a team use a telephone survey over a web survey?
2
A. Anytime
B. Target customer group is easily accessible over the Internet
C. A high response rate is needed
D. Time availability of customer is a concern
A telephone survey has a higher response rate than web surveys so if that is only requirement by the organization,
the telephone survey method should be used.
Knowledge
Check
Which VOC data collection method is the least costly?
3
A. Survey
B. Interview
C. Focus Group
D. VOC Table
Knowledge
Check
Which VOC data collection method is the least costly?
3
A. Survey
B. Interview
C. Focus Group
D. VOC Table
Implementing a web survey does not cost as much as an interview or focus group.
Knowledge
Check
Which of the following is NOT an element of a developed CTQ?
4
A. Metric
B. Target
C. Supplier characteristic
D. Specification limit
Knowledge
Check
Which of the following is NOT an element of a developed CTQ?
4
A. Metric
B. Target
C. Supplier characteristic
D. Specification limit
An output characteristic is needed and not a supplier characteristic.

Knowledge
Check
How many phases are there in QFD?
5
A. 2
B. 3
C. 4
D. 5
Knowledge
Check
How many phases are there in QFD?
5
A. 2
B. 3
C. 4
D. 5
There are four phases in the QFD. The four phases are product planning, product design, process planning, and process
control.
Project Management Basics
Learning Objectives
List the elements of a project charter
List the components of a project plan
Set project objectives, scope, and metrics
Describe the tools used for scheduling and risk analysis and
management
Define the need for project documentation
Scenario
 Project
management 
Project A Project B
The Project Charter
Project Charter
  Defines measurable objectives and scope
Project Charter
Team Mission
Operation Scope
Project Objectives
Time Frame
Project Consequences
Project Charter

Project Charter
Black Belt
reviews the
Champion or
Top
Management
approves the
Green Belt charter charter
writes the
charter

Sections in a Six Sigma Project Charter
Project Name
Project Description
Problem statement
Business Need
Team Members
Deliverables or Project Scope
Stakeholder Requirements
Project Timelines
Project Constraints
Summary Budget
A Lean Project Charter: Example
Project Charter: Example
Project Charter: The Problem Statement
States the problem clearly and

concisely
Performance
Gap Required State
Identifies and specifies the
observed gap in performance
Actual State
Is quantifiable with metrics
The problem statement cannot contain solutions or causes for the problem.
Defining a Good Problem Statement
Poor
Problem In recent months, our claim success rate has decreased a lot.
Statement
Over the last 5 months we have seen a 10% reduction in our claim success
Good
Problem rate which corresponds to $1.5M and a 5% improvement is required to meet a
Statement
70% claim rate requirement.
Project Charter: Project Objectives
  
S M A R T S
Time-
Specific Measurable Attainable Relevant Stretched
based
Clear and Practical Directly aligned Time frame for Not easily
concise Quantifiable and realistic to problem completion achievable
The Project Charter: Project Scope
Processes
PROJECT SCOPE
Refers to
Work
involved
Products
The Project Charter: Project Scope
1. Define, verify, and control

project scope Scope
Planning
Scope 2. Review project charter

Definition
Steps Involved
PROJECT
SCOPE
Work
Scope
5. Control and manage Breakdown 3. Divide project into
Control
change to scope Structure smaller tasks
Scope
Verification
4. Receive scope acceptance
from management
The Project Charter: Interpretation of Project Scope
Project scope is interpreted from the Problem Statement and the Project Charter using a variety of tools.
A Pareto chart helps identify the causes that have a major impact on the project.
Pareto chart
The SIPOC helps team members understand the process functions at different
levels.
SIPOC
The Is/Is Not matrix helps define the scope, problem, or decision being addressed.
Is/Is Not
Interpretation of Project Scope: Pareto Chart
Helps teams focus on the factors that have the most significant
impact on a project
Pareto chart
 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.
 It shows 80% of the effects come from 20% of the

causes.
Pareto charts are helpful only if data is available.

Interpretation of Project Scope: Pareto Chart Example
A hotel receives several complaints from its customers and the manager wants to
Problem
identify the key complaint areas.
Number Percentage Cumulative

Data Cause
P
Cleaning 35 54.69% 54.69% C
Check-in 19 29.69% 84.38% a
h
Pool timings 4 6.25% 90.63% r
a
Minibar 3 4.69% 95.31% e
r
Room service 2 3.13% 98.44%
t
Other 1 1.56% 100.00% t
o
Total 64 100.00%
Note that the 80/20 rule is a general rule of thumb.

Interpretation of Project Scope: Process Maps and SIPOC
A process map is a micro-level flow chart that provides the details of a

process.
Process Map
SIPOC Level 2 Level 3

SUPPLIER
 It covers details at all levels of a project.
Step 1
 It provides a walk-through-the-current-process
experience.
. Step 2
 It helps identify which parts in the process flow is

the focus of the project. Step 3
 The SIPOC map is used as a blueprint while

drawing a process map. Step n
CUSTOMER
Interpretation of Project Scope: Is/Is Not Matrix
The Is/Is Not matrix helps define the scope, problem, or decision being addressed.
Is/Is Not Matrix
Example IS IS NOT
Problem statement: Visible gaps in seams;
Paper cup leaks What Slow leaks; 12 oz. paper cups Styrofoam cups; plastic cups;
16 oz. or 20 oz. paper cups
6 mm above the bottom;

Bottom of cup; at joint of
anywhere else along the
Where vertical seam with bottom; less
bottom away from the vertical
than 5 mm from bottom
seam
First shift production; between

Second shift production; two
When 11 months ago and 3 weeks
weeks ago and 1 year ago
ago
Same extent on both shifts; all

10% of production overall; 20-
To What the time; barely noticeable
30% on second shift; drip rate
Extent (1/min) or immediately obvious
of 30/min
(60+/min)
Project Charter: Project Metrics
Project metrics are used to measure a project’s progress and performance.

Project Metrics
 Project metrics are identified in the Define phase of the project.

 They are finalized in the Measure phase of the project.
Project Charter: Types of Project Metrics
Primary Project Secondary Consequential

Metrics Project Metrics Project Metrics
 Describe one primary  Are numerical  Measure possible

output representations of the negative effects of
 Suppliers, internal primary metrics improving primary
processes, and  Some examples include metrics
customers are the DPU, DPMO, average  An example – if
sources age of receivables, primary metric is
 Some examples include number of lines of Cost, consequential
Quality, Timeliness, Cost, error-free code, and metrics could be
Value, and Labor reduction in amount of Timeliness, and
scrap Quality
 Help understand
cause-and-effect
between primary and
secondary metrics
Consequential Project Metrics: Example
SCENARIO
A project is carried out to increase the pace of introducing product offers to customers.
However, in the current practice, releasing the offers at a faster pace will hamper the quality
of the previous offer.
Due to a current offer, the product could be degraded as overpriced or the product margin
could be degraded because of the upcoming offer as the product will now be underpriced.
SOLUTION
Instead of increasing the pace of introducing offers and calling it as an improvement to the
process, the team can create and introduce a new design or modify the process to benefit the
organization.
By increasing the pace of introducing product offers, the project can show the profit it makes,
but it fails to record the loss and downfall of the previous offers.
This is where consequential metrics help understand the cause-and-effect relationship

between primary and the secondary metrics and the impact it has on the organization.
Project Planning
Project Documentation

Project Charter Project Plan Project Status Report Final Project Report
Project Documentation Vehicles

Project Charter
P
R
O
J
E
C
Project Plan T
Project Storyboard Statistical Tool Output
D
O
C Project
Documentation
Project Status Report U Vehicles
M
E
N
T
Final Project Report S Spreadsheet Output Checklists
Project Documentation Vehicles

Project Charter
P
R
Project documentation is vital:
O
J Provides proof for project execution
E
C
Project Plan T
Documents discussions and decisions
D WHY? made
O
C
Project Status Report
U Ensures common understanding of
M requirements and status
E
N
T
Final Project Report S Enables project planning
Project Documentation: Project Plan
Control
Project Plan
Project
Processes

Project Charter
Project Documentation: Project Plan
Project management approach and scope
Work breakdown structure
Cost estimates and schedules
Performance baselines and milestones
Staff required for the project
Open or pending decisions
Key risks involved in the project

Project Plan: Work Breakdown Structure
Project Scope
Delivery-oriented
WBS
Project
Deliverables
Control Control
Schedule
 Work
Package
1
Work
Package
2
Work
Package
3

Schedule
Cost
 
Cost
Project Plan: Work Breakdown Structure Example
EXAMPLE WBS
Telephone
Instrument
Wiring Circuits
Box
Handheld to Phone to input

Keyboard Screen Ringer
instrument mode
This is an example from a telephone manufacturing project.
The WBS includes everything that will form the final product. Anything that is not listed in the WBS
will not be a part of the final product, in this case, the telephone.
Project Plan Schedule: Network Diagram
2
Assumptions made while drawing a
3 network diagram:
4
 Pending or predecessor activities are
Project schedule completed
Activity Network Diagram  Direction of an arrow represents the

sequence for activities
 Start from a single event and end with

a single event
Project Plan Schedule: Network Diagram Terms
Terms associated with activity network diagram
Earliest date by The last date by

when the task when the task
can be started should be
started
Early Start Late Start Duration of • The difference between the Early
the task Start and Early Finish of the task
• The amount of time the task can be

Float time delayed before it causes a delay in the
Early Finish Late Finish overall project timeline
Earliest date by • The last date

when the task by when the
can be task should
completed be completed
Project Plan Schedule: Network Diagram Example
Project Plan Schedule: Critical Path Method
Critical path is the longest sequence of tasks on

the network diagram.
0 Tasks on the critical path have zero slack.
Resources from tasks not on the critical path

can be diverted to tasks on the critical path.
A complex project can have multiple critical paths.

Project Plan Schedule: Pert
Activity Duration Estimation Types PERT
• This estimate believes • This estimate assumes • This estimate assumes

that all the factors that the activity will that all that can go
affect the activity will go encounter some issues. wrong will go wrong
in favor of the activity. • Therefore, the estimate with the activity.
• Therefore, the estimate provides some • Therefore, the estimate
is lesser than the other. contingency buffers. provides large
two. contingency buffers.
Optimistic
 Most Likely
 Pessimistic

to + 4t m + t p
Realistic estimate of the activity (t e ) =
6
Project Plan Schedule: Gantt Chart
GANTT CHART
A graphic method to schedule, plan, and control a project.

Project schedule is represented as a bar chart.
The baseline, actual completed, duration remaining, and slack are indicated using bar length and color.
Example:
● Tasks A and B were completed on time.
● Task D is delayed by 1 day.
● Tasks B and C will start after completion of Task A.
● Task F is dependent on task D. Hence, delay of
Task D will impact Task F, and it will finish a day
late.
● Tasks which do not have slack time are tasks on
the critical path. Tasks B, D, and F are tasks on the
critical path.
Project Plan: Risks
Risks are uncertain events or consequences that could occur during a project
Project Project
Scope Quality
Project
Risks Project Project
Impact Time Cost
Project Plan: Risks and Types
Risks can be positive or negative.
Positive Project Negative Project

Risk Success Risk Success
Project Plan: Risks and Terms
Risk Term Description
1 2
Risk Probability Likelihood that a risk will occur
5 3
4
Issue Occurrence of a risk

✓
Risk
Effects on project objectives if the risk occurs
Consequences
Project Plan: Risks and Additional Elements
Elements General examples

Risk Factor • A high cholesterol diet
• Living near a fault line of Earth’s plates
• Slippery driving conditions
Risk event • Doctor’s diagnosis of heart problem
• An earthquake
• A car accident
Risk outcome • Diagnosed heart disease exists
• Some buildings and roads destroyed
• Crash scene: Untreated personal injuries and damaged vehicles
Risk reaction • Treatment of heart problem

• Reconstruction of roads and buildings
• Treatment of injuries; purchase new car
Risk Effect • Hospital stay; cost of medical care
• Human lives lost; cost and inconvenience of reconstruction
• Medical costs, permanent injury effects; raised insurance premiums
Utility loss • The net effect of pain, lost time, and expenses by individuals
Project Plan: Risk Analysis And Management
Project Lifecycle
1 2
Risk Management
5 Risk Analysis 3
4
Project Plan: Risk Analysis and Management Process
Implement Monitor and

Prioritize Risk Counter Control Risk
Identify Risk Evaluate Risk
Measures
Using Using Based on their That have So that the

Risk Analysis qualitative quantitative RPN been risk and its
techniques: methods identified impact are
under three under control
Interview Brainstorm
criteria:
Brainstorming counter or
Five-step Occurrence prevention
Check sheets
Process Severity measures
Qual Detection
ity

Project Plan: Risk Rating Example
Defined Conditions for Impact Scales of a Risk on Major Project Objectives

(Examples are shown for negative impacts only)
Relative or numerical scales are shown here
Project Objective Very Low / .05 Low / .10 Moderate /.20 High / .40 Very high / .80
Cost Insignificant <10% cost 10-20% cost 20-40% cost >40% cost increase
cost increase increase increase increase
Time Insignificant <5% time 5-10% time 10-20% time >20% time increase
time increase increase increase increase
Scope Scope Minor areas of Major areas of Scope reduction Project end item is
decrease scope affected scope affected unacceptable to effectively useless
barely sponsor
noticeable
Quality Quality Only very Quality reduction Quality reduction Project end item is
degradation demanding requires sponsor unacceptable to effectively useless
barely applications approval sponsor
noticeable are affected
Project Plan: Risk Assessment Matrix
Project Plan: Benefits of Risk Analysis
Risk
Riskcan
canbe
bemitigated, avoided,or
mitigated, avoided, oraccepted
accepted
 Slack time can be used as a buffer
Helps set realistic expectations from the project
Contingency plans can be developed for identified

risks
Project Closure
Key Takeaways
Project documentation is a vital part of project management.
A project charter defines a team’s mission, scope of

operation, objectives, time frame, and consequences for the
project.
Defining the problem statement is the first step in project

initiation.
A project’s scope is derived from the problem statement and

project charter using a variety of tools.
A project plan is an approved document used to control and

manage a project.
The WBS, network diagrams, Gantt, and PERT are tools used
in project scheduling and monitoring.
Knowledge Check
Knowledge
Check You want the scope of your project to be focused on the most impactful issues. What
tool would you use?
1
A. SIPOC
B. Pareto Chart
C. Charter
D. Is/Is Not Matrix

Knowledge
Check You want the scope of your project to be focused on the most impactful issues. What
tool would you use?
1
A. SIPOC
B. Pareto Chart
C. Charter
D. Is/Is Not Matrix
The Pareto Chart shows the vital few issues that cause most of the problem. Therefore, this would be the tool to use.
Knowledge
Check
What is the first step when starting a project?
2
A. Defining the problem statement
B. Mapping the process
C. Calculating the financial benefit
D. Identifying the appropriate metrics

Knowledge
Check
What is the first step when starting a project?
2
A. Defining the problem statement
B. Mapping the process
C. Calculating the financial benefit
D. Identifying the appropriate metrics
The first step that must be accomplished when starting a project is clearly defining the problem.
Knowledge
Check
Which of the following statements is NOT true of a project charter?
3
A. It needs to be approved by management.
B. It is created from the project plan.
C. It contains the problem statement.
D. It shows the project milestones.

Knowledge
Check
Which of the following statements is NOT true of a project charter?
3
A. It needs to be approved by management.
B. It is created from the project plan.
C. It contains the problem statement.
D. It shows the project milestones.
The project charter is used to create the project plan and not the other way around.
Knowledge
Check
What is the critical path in a project schedule?
4
A. The hardest path to follow
B. The path with the most important activities
C. The series of activities with no slack time
D. None of the options

Knowledge
Check
What is the critical path in a project schedule?
4
A. The hardest path to follow
B. The path with the most important activities
C. The series of activities with no slack time
D. None of the options
The critical path is the series of activities with no slack time or, in other words, the path of activities that would result
in the project being delayed if any one of the activities is delayed.
Knowledge
Check
Which tool can be used to help identify and prioritize project risk?
5
A. SIPOC
B. IS/ IS NOT matrix
C. Gantt Chart
D. FMEA
Knowledge
Check
Which tool can be used to help identify and prioritize project risk?
5
A. SIPOC
B. IS/ IS NOT matrix
C. Gantt Chart
D. FMEA
The FMEA (Failure Modes and Effects Analysis) is a risk prioritization tool.
Management and Planning Tools
Learning Objectives
Identify the tools that help in planning and managing

projects.
Use the tools to control project processes.

Tools for Managing a Project
How can a team systematically manage and compare many different ideas, activities,
or issues to come to a consensus and take action?
Solution
Issue! Issue!
Idea Idea
Idea
The 7 Management
 and
Planning Tools
Project Team
The Seven Tools
Affinity Diagram: Description
 Used when consensus of a group is necessary to solve

unfamiliar problems
 Helps organize several ideas into similar categories or using

their natural relationships
! The tool is also useful for analyzing verbal data, such a

results from VOC surveys.
Affinity Diagram: Example
Factors that increase turnover of employees
Poor Poor Work Poor Lack of

Compensation Environment Relationships Motivation
Hours are Pay is too Lighting is Don’t like Pay is too Lighting is Don’t like Work is not
too long low poor the people low poor the people a challenge
Workers
Air is stuffy Uncomfortabl unkind Hours are Uncomfortabl Too
Workers
e room too long e room repetitive
unkind
Work is Too
not a Can’t live repetitive Can’t live Air is stuffy
challenge on wage on wage
Sticky Papers Categorized under Header Cards

Interrelationship Diagram: Description
 Used when a problem is complex and cause and effect

relationships must be viewed
 Used after an affinity diagram
 Illustrates the relationship between ideas

Interrelationship Diagram: Example
Developing a quality plan in an organization
Customer
Focus
Lack of
Quality Lack of
Strategy Focus
Responsibility
Inadequat Not clear
No Standard
e Training TQM Method
Time
Lack of Knowledge
Lack of
of Quality
Communication
Improvement
of information
Confusion of
Committees without Lack of TQM
organization Commitment by
top managers
Tree Diagram: Description
 A systematic approach to solve a problem to reach a predefined goal
 Used to develop actions to execute a solution
 Enables analyzing a process in detail
 Used to evaluate implementation issues for potential problems
 Used as a communication tool to explain process details

Tree Diagram: Example
Coffee House Standards
Espresso temperature
Hot but not too hot
Req A1
Driver 1 Steamed milk temperature
Req A2
Texture of ground coffee

Delightful Cappuccino Strong coffee flavor
Req B1
Need Driver 2 Amount of ground coffee
Req B2
Type of sweetener
Correct amount
of sweetness Req C1
Driver 3 Amount of sweetener
Req C2
Matrix Diagram: Description
 Shows the relationship between objectives and methods, results and

causes, and tasks and people
 Provides information about the relationships
 Helps determine the strength of relationships
 Provides importance of task and method elements of the subject
 Helps in organizing a large number of inter-process activities

Matrix Diagram: Types
L Type Matrix T Type Matrix X Type Matrix Y Type Matrix C Type Matrix
Compares one list Compares one list Compares four lists, Compares three Compares three
against another against two others, each against two lists, each against lists against one
with one set of in pairs, with two other lists, in pairs, the other in pairs - another, a
elements on the x- sets of elements on with two sets of two L type matrices combination of two
axis and one set the y-axis which are elements on both joined at the y axis. L type matrices
along the y-axis. split by a set of the x and the y joined at the y axis
elements on the x- axes. in a three
axis. dimensional space.
Matrix Diagram: Example
This T-shaped matrix relates product models to their manufacturing locations and to their customers.
Texas Plant
Mississippi plant
Alabama plant
Arkansas plant
Large volume
Model A Model B Model C Model D
Small volume
Zig corp.
Arlo Co.
Lyle Co.
Time Inc.
Prioritization Matrices: Description
 Are L-shaped matrices
 Are used to prioritize tasks, products, or service characteristics based

on known weighted criteria
 Are methods for making decisions without using computers
 On the down side, are rigorous and time-consuming decision making

tools
Prioritization Matrices: Examples
Full analytical
criteria method
Consensus
criteria method
Combination
interrelationship
matrix method
Activity Network Diagrams: Description
 Show the time required for solving a problem
 Help identify items in a process that can be done in parallel
 Are used to schedule and monitor tasks in a complex project or

process
Activity Network Diagrams: Example
Building a House
Exterior Interior
Walls Walls
6d 10d
4 5
Final Completion
Foundation Framework Scaffolding Plumbing Inspection
6d
1 2 3 6d 6 8d 10 11
Door and
10d Window
8
Painting
7d 10d
9
Electrical Work
12d
7
Amount of time for each operation

Relation of work without time for each operation
Process Decision Program Chart (PDPC): Description
The PDPC method is used before implementing a plan or when a plan

must be completed on schedule.
It helps:
 Chart the course of events of a process
 Identify what could go wrong in the process
 Prepare contingency plans

Process Decision Program Chart: Example
Bidding Process
Could not fix a date Order request from a buyer Start
Tried again and Appointment with

confirmed appointment the buyer
Appointment data
Could not fix a date confirmed
Order lost Meet the buyer
Price not competitive Describe price, product

or service
Repeat the bid Justify the price
Price competitive
Bid not agreed Bid agreed
Order lost Order secure

Key Takeaways
The Affinity Diagram method is used by teams to organize

several ideas.
The Interrelationship Diagram is used to illustrate the

relationship between ideas in complex situations.
The Tree Diagram is a systematic approach to outline and

identify the tasks and methods needed to solve a problem.
Matrix diagrams show the relationship between project

objectives and methods.
Key Takeaways
Prioritization matrices are methods for making decisions

without the use of computers.
Activity Network Diagrams are used to show the time

needed to solve a problem.
The PDPC method helps chart the course of events from the
beginning of a process till the end of the process.
PDPC also helps prepare contingency plans and

countermeasures.
Knowledge Check
Knowledge
Check
Which of the following types of matrix compares relationships in three planes?
1
A. L Type
B. C Type
C. X Type
D. Y Type
Knowledge
Check
Which of the following types of matrix compares relationships in three planes?
1
A. L Type
B. C Type
C. X Type
D. Y Type
The C Type matrix is a three dimensional matrix and therefore compares relationships on three planes
Knowledge
Check
Which of the following is not one of the Seven Tools of Management?
2
A. Affinity Diagram
B. Matrix Diagram
C. Cause and Effect Diagram
D. Activity Network Diagram

Knowledge
Check
Which of the following is not one of the Seven Tools of Management?
2
A. Affinity Diagram
B. Matrix Diagram
C. Cause and Effect Diagram
D. Activity Network Diagram
The Seven Tools of Management are Affinity Diagrams Interrelationship Diagrams, Tree Diagrams, Matrix Diagrams,
Prioritization Matrix, Activity Network Diagrams, and Process Decision Program Charts (PDPC).
Business Results for Projects
Learning Objectives
Define process performance

Scenario
The problem
?
Primary metric:
Number of coffee orders
processed per hour
JAVA COFFEE HOUSE

Scenario
The solution
Defects ?
Secondary metric:
Number of defects ✓
JAVA COFFEE HOUSE
Process Performance
Metrics to Assess the Performance of a Business
Metrics to measure business results for projects are critical to evaluate success.
Metrics to Assess the Performance of a Business
Defect Per Million

Rolled Throughput Opportunities Sigma Level
Yield (RTY) (DPMO)
Throughput Yield
Cost of Quality
(TPY)
Process Capability
Defect Per Unit (DPU)
(Cp)
Defect Per Unit (DFU): Introduction
Defect per unit (DPU) is the average number of defects per unit of a product.
Total number of defects

DPU =
Total number of units
Example to Calculate DPU
Defects
0 1 2 3 4 5
per unit
? Units 50 30 15 4 0 1
100
Number 0 30 30 12 0 5
of defects (0*50) (1*30) (2 * 15) (3 * 4) (4*0) (5 * 1) 77
! DPU =
0(50) + 1(30) + 2(15) + 3(4) + 5(1)
50 + 30 +15 + 4 + 1
=
77
100
= 0.77
Throughput Yield: Introduction
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.
-DPU
TPY = e e = 2.7183
DPU = In (TPY)
Throughput Yield: Example to Calculate TPY
Defects per
0 1 2 3 5
unit
? Number of
0 30
30 12 5
defects (2 * 15) (3 * 4) (5 * 1)
DPU =
0.77
Units 50 30 15 4 1
! TPY = e
-DPU
=e
-0.77
= 0.46 = 46%
Rolled Throughput Yield: Introduction
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.
-TDPU
RTY = e
TDPU = - In(RTY)
First Pass Yield: Introduction
First Pass Yield (FPY) is the number of products which pass without any rework of the
total number of units.
Total number of units – Number of defective units

FPY =
Total number of quality products

=
RTY = FPY1 * FPY2 * FPY3…FPYn

Calculation of FPY and RTY: Problem
Process Process Process

Supplier Customer
A B C
Input parts from the Input parts that passed Reworked

Process
supplier inspection parts
Process A 100 85 5
Process B 90 80 5
Process C 85 85 0
Calculation of FPY and RTY: Solution
Total number of quality products 85

FPY for Process A = = = 0.850 = 85%
Total number of units 100
Total number of quality products 80

FPY for Process B = = = 0.889 = 88.9%
Total number of units 90
Total number of quality products

FPY for Process C = = 1 = 100%
RTY = 0.850 * 0.889 * 1 = 0.75 = 75%

Defects Per Million Opportunities (DPMO): Introduction
Defect per Million Opportunities (DPMO), or Non-Conformities per Million

Opportunities (NPMO), is a measure of process performance.

DPMO = * 106
Total number of opportunities
Total number of opportunities = Units * Number of opportunities per unit

Defects Per Million Opportunities (DPMO): Example
?
2 3 4 5 defect opportunities
5 6 7
Total number of opportunities = Units * Number of opportunities per unit
= 7 * 5 = 35 total opportunities
! DPMO =
Total number of opportunities
* 106
10
= * 106 = 285714 DPMO
35
Sigma Level: Introduction
Sigma Level is a measure of the error rate of the process.

Sigma levels are generally based on DPMO.
Cost Of Quality (COQ): Introduction
Cost of Quality (COQ) is the cost incurred by a process because it cannot

consistently make a perfect product.
Process
performance
Preventive cost + Appraisal cost + Internal failure

cost + External failure
cost

Process
performance

cost
Cost incurred in preventing a failure
Example: Training and improvement programs


Process
performance

cost
Cost incurred to test a product for quality

conformance
Example: Testing, audits, and inspection


Process
performance

cost
Cost associated with defects identified before a product

reaches the customer
Example: Rework and scrap


Process
performance

cost
Cost associated with defects after a product reaches the

customer
Example: Warranty claims, returned products, and loss in reputation

Process Capability (Cp)
Process Capability (Cp) and Process Capability Indices (Cpk) is defined as the inherent variability of
a characteristic of a process or a product.
USL
Process comfortably meets specification

Process meets specification limits
limits
LSL
Process only meets specification limits. Process does not meet specification
Any shift or spread will result in failures. limits. There are many failures.
Process Capability (Cp): Formula
Upper specification limit (USL) – Lower specification limit (LSL)

Cp =
6σ
Key Takeaways
DPU is the average number of defects per unit of a product.
TPY is the number of acceptable pieces divided by the

number of starting pieces.
RTY is the probability of the entire process producing zero

defects.
FPY is the number of products which pass without any

rework of the total number of units.
Key Takeaways
DPMO or NPMO is a measure of process performance.
Sigma Level is a measure of the error rate of the process.
COQ is the cost incurred by a process because it cannot

Cp is defined as the inherent variability of a characteristic of

a process or a product.
Knowledge Check
Knowledge
Check A process has finished running and produced 5 parts. Each part has three
opportunities. The inspector found 2 defects. What is the Defect Per Million
1 Opportunities (DPMO)?
A. 0.13
B. 0.67
C. 0.6
D. 0.5
Knowledge
Check A process has finished running and produced 5 parts. Each part has three
opportunities. The inspector found 2 defects. What is the Defect Per Million
1 Opportunities (DPMO)?
A. 0.13
B. 0.67
C. 0.6
D. 0.5
DPMO = Total number of defects/ Total number of opportunities = 2/(3*5) = 0.13

Knowledge
Check If we want to compare the performance of different processes, which metric should we
2 use?
A. RTY
B. DPMO
C. DPU
D. FPY
Knowledge
Check If we want to compare the performance of different processes, which metric should we
2 use?
A. RTY
B. DPMO
C. DPU
D. FPY
Defects per million opportunities, or DPMO, standardizes the number of defects at the opportunity level and allows
comparison of the processes with different complexities.
Project Management Basics
Learning Objectives
Describe team stages and dynamics
List the team roles and responsibilities
Define team communication
List the team tools

Do You Know
Q
What is the key to successfully completing Lean Six Sigma
Projects?
A Teamwork!
Understanding the dynamics of a team throughout a project

will put you in a better position to work within the team and
succeed.
Team Stages and Dynamics
Group vs. Team Dynamics
Group Team
A Six sigma team is a true team because each member is dependent on

the others to be successful.
Team Dynamics: Scenario
Negative team dynamics impacting performance can be:
A seasoned team resisting any recommendations from a new

team member because she has an adverse impact on team
dynamics
The personalities of a manager and supplier conflict, impacting

the service deliverables thereby leading to a negative perception
of the service provided by the entire team
Relationships between the members of a Six Sigma team

deteriorating due to a feeling that some members were not
contributing enough to the team activities
Team Stages: The Five Stages
Adjourning
Performing
Norming
Storming
Forming
Adjourning
Performing
Norming
Storming
Forming
• Team comes together and the team leader directs and assigns responsibilities
• Team leader employs a directive style of management
• Team members are generally enthusiastic and motivated by a desire to be accepted
Adjourning
Performing
Norming
Storming
Forming
• Conflicts start to arise within the team over responsibilities and control
• Team leader employs a coaching style of management
Adjourning
Performing
Norming
Storming
Forming
• Team develops a unified commitment to the project goal and look to the leader for clarification
• Team leader promotes and participates in the team activities and employs a participatory style of
management
Adjourning
Performing
Norming
Storming
Forming
• Team evolution happens successfully

• Team members manage complex tasks and work toward common goals
• Team leader employs a supervisory style of management and delegates work
Adjourning
Performing
Norming
Storming
Forming
• The project starts winding down and the goals are within reach
• Team members deal with their impending separation from the team
• Team leader provides feedback to the team and employs a supportive style of management
Negative Team Dynamics: Types of Participants
Overbearing Participants Dominant Participants Reluctant Participants

Negative Behavior Solution
Take on a position of authority and discounts

Establish ground rules for participation
contributions from other team members
Take up an excessive amount of group time by Provide constructive feedback without curbing their
talking too much, focusing on trivial concerns, and enthusiasm
otherwise preventing participation by others

Miss opportunities to bring up data that is valuable Offer encouragement by responding positively to
to the project their contribution
Types of Group Challenges
Opinions
Feuding
Groupthink
Floundering
Rush to Achieve
Attribution
Discounts
Plops, Digressions, and Tangents

Opinions
Challenges:
• Opinions, when confused for facts, can lead to
Feuding miscalculations or misinterpretations, and affect the
project adversely.
Groupthink
Prevention:
Floundering • Decisions should be based on data.
Rush to Achieve
Attribution
Discounts

Opinions
Challenges:
• Feuds between team members negatively affect
Feuding the group dynamic and can be intimidating to
people not involved in them.
Groupthink
Prevention:
Floundering • Team leader sets the right tone and creates rules
for interpersonal behavior.
Rush to Achieve
Attribution
Discounts

Opinions
Challenges:
• Groupthink occurs when team members reach a
Feuding consensus without critical analysis.
Groupthink Prevention:
• One of the team members plays the role of the devil’s
Floundering advocate.
Rush to Achieve
Attribution
Discounts

Opinions
Challenges:
• In floundering, teams are unable to make or commit
Feuding to decisions.
Groupthink
Prevention:
• The team relook at the roles and responsibilities and
Floundering improve communication.
Rush to Achieve
Attribution
Discounts

Opinions
Feuding
Groupthink
Floundering
Rush to Achieve
Challenges:
• Rush to achieve occurs when the team is more
Attribution concerned about getting results than analyzing
different options.
Discounts Prevention:
• Team members are reassured that they have sufficient
Plops, Digressions, and Tangents time to do quality work.
Opinions
Feuding
Groupthink
Floundering
Rush to Achieve
Challenges:
• Decisions are based on inferences and unverified
Attribution
data.
• Inferences should be analyzed for their veracity and
applicability.
Opinions
Feuding
Groupthink
Floundering
Rush to Achieve
Challenges:
• Discounts occur when group members are dismissive
Attribution of others’ contributions.
• Refocus the team’s attention on the individual’s
contribution to ensure it is not overlooked.
Opinions
Feuding
Groupthink
Floundering
Rush to Achieve Challenges:

• Plops is when one member criticizes others in the
group. Digressions and tangents occur when group
Attribution members lack focus and discuss unrelated topics or
face interruptions.
Discounts
Prevention:
• The team leader has to ensure that the team remains
Plops, Digressions, and Tangents focused and constructive.
Six Sigma Team
Six Sigma Team: Roles and Responsibilities
Executive Sponsor Black Belt Facilitator
Process Owner Green Belt Sponsor
Champion Executive
 Team Member
Master Black Belt Coach

Executive Sponsor:
Source or conduit for project resources and is

usually the recipient of the benefits the project will
produce.
Process Owner:
Works with the Black Belts to improve their

respective process and provides functional
expertise.
Champion:
Upper-level manager who controls and allocates

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 Belt:
Leader of individual Six Sigma projects who

mentors Green Belts by educating them in Six
Sigma tools.
Green Belt:
Leads project teams who are working in their areas

of expertise.
Executive:
Manages and leads the team to ensure smooth

working of tasks and 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 understand its

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 fulfill project objectives.
Team Communication
Modes of Communication
 Meetings
Communication Memos
Emails
Type of Time or Process

Receiver Stage
Information
Newsletters
   Events
Meetings
Memos
Emails
Meetings are good for analyzing, discussing, and

presenting information for everyone. Newsletters
Events
Meetings

Memos
Emails
Memos are short business letters used to exchange

limited information. Newsletters
Events
Meetings
Memos
Emails
Emails are major modes for information

communication through text format.
Newsletters
Events
Meetings
Memos
Emails
Newsletter is a regularly circulated publication in

the office. Newsletters
Events
Meetings
Memos
Emails
Event is an occasion where people

exchange information. Newsletters
Events
Communication within the Team
Communicate the roles and responsibilities
Understand the status of the project 
Identify the outstanding tasks, risks, and

their corrective actions 
Decision making
Coordinate and work efficiently

Communication with Stakeholders
Communicate
the goals
Understand the
Assist decision-
status of the
making
project
Identify the
 adverse effects
to the
stakeholders
Communication Techniques
Vertical Communication Horizontal Communication
Verbal and Non-verbal One-way and Two-way

Communication Communication

Team Tools
Brainstorming
Brainstorming is a tool used by the project team to generate solutions to predefined problems.
Identification Information Speculation Suspension Evaluation Analysis Presentation

Nominal Group Technique
Explain issue
Note idea individually
Vote
Prioritize
Multivoting
Multivoting is used to arrange and enlist a long list of items to a

considerably smaller or manageable number.
Generate a list
Choose from the list
Vote
Conclude with a smaller list

Key Takeaways
A team is a special type of group in which the members

share a common objective or goal.
There are five stages in the team building process.
The different group challenges are Opinions, Feuding,

Groupthink, Floundering, Rush to Achieve, Attribution,
Discounts, and Plops, Digressions, and Tangents.
The different modes of communication are meetings,

memos, emails, newsletters, and events.
The team tools are brainstorming, nominal group technique,

and multivoting.
Key Takeaways
A project’s scope is derived from the problem statement and

project charter using a variety of tools.
A project plan is an approved document used to control and

manage a project.
The WBS, network diagrams, Gantt, and PERT are tools used
in project scheduling and monitoring.
Knowledge Check
Knowledge
Check A team was formed recently, and the members have skipped over helpful analysis in
hopes of seeing quick results. Which group challenge is this an example of?
1
A. Floundering
B. Rush to Achieve
C. Groupthink
D. Discounts
Knowledge
Check A team was formed recently, and the members have skipped over helpful analysis in
hopes of seeing quick results. Which group challenge is this an example of?
1
A. Floundering
B. Rush to Achieve
C. Groupthink
D. Discounts
Rush to Achieve is the group challenge that occurs when results matter more than analysis to ensure the best options
have been identified.
Knowledge
Check Which of the following roles works with the Black Belts to improve its respective
2 process and provides functional expertise?
A. Champion
B. Master Black Belt
C. Green Belt
D. Process Owner
Knowledge
Check Which of the following roles works with the Black Belts to improve its respective
2 process and provides functional expertise?
A. Champion
C. Green Belt
D. Process Owner
Process owners works with the Black Belts to improve their respective process and provide functional expertise.
Knowledge
Check If you want to analyze a topic in detail with your team, what mode of communication
3 should you try to use first?
A. Meeting
B. Newsletter
C. Email
D. Memo
Knowledge
Check If you want to analyze a topic in detail with your team, what mode of communication
3 should you try to use first?
A. Meeting
B. Newsletter
C. Email
D. Memo
A meeting is a great mode of communication to analyze and discuss ideas.

Knowledge
Check
Which of the following is NOT a stage in team dynamics?
4
A. Forming
B. Adjourning
C. Storming
D. Process Improvement
Knowledge
Check
Which of the following is NOT a stage in team dynamics?
4
A. Forming
B. Adjourning
C. Storming
D. Process Improvement
Process Improvement is not a stage in team dynamics.

Knowledge
Check
Which of the following is NOT a goal when communicating with stakeholders?
5
A. Communicate project objective
B. Understand team member conflicts
C. Identify adverse effects to stakeholders
D. Assist decision making

Knowledge
Check
Which of the following is NOT a goal when communicating with stakeholders?
5
A. Communicate project objective
B. Understand team member conflicts
C. Identify adverse effects to stakeholders
D. Assist decision making
Understanding team member conflicts is not considered when communicating with stakeholders.
Knowledge
Check
Who trains, mentors, teaches, and guides the team when required?
6
A. Champion
C. Coach
D. Sponsor
Knowledge
Check
Who trains, mentors, teaches, and guides the team when required?
6
A. Champion
C. Coach
D. Sponsor
A meeting is a great mode of communication to analyze and discuss ideas.

Knowledge
Check You have a team member with great ideas when you talk in private, but he does not
contribute much in team meetings. This may be an example of a participant who is
7 ______.
A. Reluctant
B. Overbearing
C. Dominant
D. Floundering
Knowledge
Check You have a team member with great ideas when you talk in private, but he does not
contribute much in team meetings. This may be an example of a participant who is
7 ______.
A. Reluctant
B. Overbearing
C. Dominant
D. Floundering
A reluctant team member misses opportunities to bring up data that is valuable to the project.
Knowledge
Check
What is the primary difference between NGT and Brainstorming?
8
A. The number of participants allowed
B. Identifying the problem
C. Use of a facilitator
D. Interaction of team members

Knowledge
Check
What is the primary difference between NGT and Brainstorming?
8
A. The number of participants allowed
B. Identifying the problem
C. Use of a facilitator
D. Interaction of team members
For the Nominal Group Technique, the team members do not interact as much as brainstorming during the session
since ideas are noted individually.
Lean Six Sigma Activities and Tools: Define
Activities
❑ Review Project Charter ❑ Process Map Flow ❑ Identify Root Causes ❑ Develop Potential ❑ Develop SOP’s, Training
❑ Validate High-Level Value ❑ Identify Key Input, ❑ Reduce List of Solutions Plan & Process Controls
Stream Map and Scope Process and Output Potential Root Causes ❑ Evaluate, Select, and ❑ Implement Solution and
❑ Validate Voice of the Metrics ❑ Confirm Root Cause Optimize Best Ongoing Process
Customer ❑ Develop Data Collection to Output Solutions Measurements
& Voice of the Business Plan Relationship ❑ Develop ‘To-Be’ Process ❑ Confirm Attainment of
❑ Validate Problem ❑ Validate Measurement ❑ Estimate Impact of Maps Project Goals
Statement System Root Causes on Key ❑ Develop and ❑ Identify Project Replication
and Goals ❑ Collect Baseline Data Outputs Implement Pilot Opportunities
❑ Validate Financial Benefits ❑ Determine Process ❑ Prioritize Root Causes Solution ❑ Training
❑ Create Communication Capability ❑ Statistical Analysis ❑ Implement 5s Program ❑ Complete Control Tollgate
Plan ❑ Complete Measure ❑ Complete Analyze ❑ Develop Full Scale ❑ Transition Project to
❑ Select and Launch Team Tollgate Tollgate Implementation Plan Process Owner
❑ Develop Project Schedule ❑ Cost/Benefit Analysis
❑ Complete Define Tollgate ❑ Complete Improve
Tollgate
❑ Project Charter ❑ Process Mapping ❑ Cause & Effect Matrix ❑ Process Flow ❑ Mistake-Proofing
❑ Voice of the Customer ❑ Data Collection Plan ❑ FMEA Improvement ❑ Standard Operating
❑ SIPOC Map ❑ Statistical Sampling ❑ Hypothesis Tests ❑ Design of Procedures (SOP’s)
❑ Project Valuation (ROI) ❑ Measurement System ❑ Simple & Multiple Experiments (DOE) ❑ Process Control Plans
❑ Stakeholder Analysis Analysis (MSA) Regression ❑ Solution Selection ❑ Visual Process Control
❑ Communication Plan ❑ Gage R&R ❑ ANOVA Matrix Tools
❑ Effective Meeting ❑ Control Charts ❑ Components of ❑ Piloting ❑ Statistical Process
Tools ❑ Histograms Variation ❑ Pugh Matrix Controls (SPC)
❑ Time Lines, ❑ Normality Test ❑ Pull System ❑ Visual Workplace
Milestones, ❑ Process Capability ❑ Total Productive
and Gantt Charting Analysis Maintenance
❑ Pareto Analysis ❑ Metrics
❑ Team Feedback Session
Tools
Define Tollgate Questions
❑ Is this project important, i.e. has the project been chosen because it is in alignment with business goals and the strategic direction of the
‘business’?
❑ What is the problem statement – detailing (what) is the problem, (when) was the problem first seen, (where) is it seen, and what is the
(magnitude or extent) of the problem. Is the problem measured in terms of Quality, Cycle Time or Cost Efficiency, or direct financial
benefits? Ensure there is no mention or assumptions about causes and solutions.
❑ Does a goal statement exist that defines the results expected to be achieved by the process, with reasonable and measurable targets? Is
the goal developed for the “what” in the problem statement, thus measured as Quality, Cycle Time, or Cost Efficiency metric?
❑ Does a financial business case exist, explaining the potential impact (i.e. measured in dollars) of the project on the process, department,
division, suppliers, customers, etc.?
❑ Is the project scope reasonable? Have constraints and key assumptions been identified?
❑ Who is on the team? Are they the right resources and has their required time commitment to the project been confirmed by Management
and Deployment Team?
❑ What is the high level work plan? What are the key milestones (that is, dates of tollgate reviews for DMAIC projects)?
❑ Who are the customers (internal/external) for this process? What are their requirements? Are they measurable? How were the
requirements determined?
❑ Who are the key stakeholders? How will they be involved in the project? How will progress be communicated to them? Do they agree to
the project?
❑ What kinds of barriers/obstacles will need assistance to be removed? Has the development of a risk mitigation plan to deal with the
identified risks been developed
Note :With answers to these questions you are now ready to move to the Measure Phase.
Project: Define Phase
Case Study: Introduction
This case study is a project simulation. As we complete each Phase of the DMAIC (Define, Measure,
Analyze, Improve, and Control) process, different aspects of the case study will be presented to you.
You will be given background information, instructions, data sets, project updates, and all necessary
information to work through each step of the project and answer questions.
Note:
You will be using only some of the DMAIC tools and techniques in the case study to practice solving a
single problem.
The provided solutions are not the “perfect” answers; they are only one of many potential solutions.
Problem Statement
Super Warehouse uses multiple vendors to supply and maintain its 5,000+ forklifts at all of its
locations across the globe. Over the last 6 months, forklift expense for the company was
$16.5M. An audit performed on the billing revealed a very high percentage of errors which has
resulted in significantly large overpayments to vendors.
Your team has been assigned the task to identify the cause of the errors in the process and
find a solution.
Background Information: Fulfilment Process
Any time a location needs a forklift, a purchase order is placed with the vendor. The vendor prepares
the lease paperwork for the forklift and returns the paperwork for approval to the location that made
the request. After the approval, the forklift is built to the specifications of the location and delivered. If
the delivered forklift is a replacement for a broken forklift, the broken one is returned to the vendor.
Vendors update their forklift records, then bill the company’s Expense/Payables (E/P) for the forklifts.
The invoice is then paid by E/P.
Maintenance Operations (MO) manually keys the updated vendor fleet report into the Fleet
Management System (FMS).
Accounting at company headquarters matches the vendor invoice to the fleet report and books
accruals so that the expense is billed to the correct location which placed the order. MO is notified of
any billing, order, or order discrepancies, and contacts the vendor and location to resolve them.
Project Update: The Voice of the Customer
Your project team wants to gather information from the locations and departments that
support the forklift procurement process. To accomplish this task, your team decides to
create and present a survey about the current situation.
The team brainstorms to create a list of questions for the survey and starts gathering
information to identify reasons for billing inaccuracies.
You will find the responses to the survey in the next slide.
Project Update: The Voice of the Customer
The quotes in the following table represents the responses from the survey.
VOC Responses
We were billed for a forklift that was returned three We don’t have that lift at our location even though it
months ago is listed in the fleet report
I never received that forklift I submitted the changes to update the fleet report
but still cannot find the lift in the report
The charges are right but the lease amount is wrong I need the serial number instead of the model
number to track lifts
I don’t have anything by that serial number here I am doubled billed for the same piece of equipment
We are getting billed for items like fuel with no The vendor tracking numbers and serial numbers
explanation don’t match
Vendor statements seem to be off every month I have a credit on my P&L but no explanation as to
why
We were billed for charges from third party delivery I have charges on my P&L and not sure what they
agents are for
The vendor is overcharging for this forklift I wish we could automate the system since
everything is manual
Define Phase Questions
1. What should be the outcome(s) of the Define Phase?
2. Using the given information, create a SIPOC for the forklift fulfillment process. You can use
the SIPOC template available in the toolkit.
3. Create an Affinity Diagram from the VOC responses. Using the results, what do you think
are the common complaints and the desired state for the customer?
4. Use the VOC information to complete a CTQ tree for accurate billing. You can use the CTQ
tree template available in the toolkit.
5. Formulate the operational definitions of the identified billing defect(s).
This information, along with the creation of the team charter, will help you prepare for the
Define Tollgate.
Define Phase Answers
1. The outcome of the Define Phase should be:
• Team charter with a clearly documented problem,
• Defined project objectives,
• Listed team members, and
• Highlighted project milestones.

2. SIPOC for the forklift fulfillment process
Suppliers Inputs Process Outputs Customers

Location PO Forklift ordered Received PO Vendor
Vendor PO Lease Prepared Lease Paperwork Location
Location Lease Contract Lease Approved Approval Vendor
Vendor Forklift Forklift Delivery Forklift delivered Location
E/P Money Bill Pay Bill Paid Vendor
Vendor Fleet
MO FMS Updated Updated FMS Accounting
Report
Vendor Invoice
Vendor Company Fleet Accruals Booked Accruals Location
Report
Discrepancies Discrepancies
MO Resolutions Location/Vendor
Contact info Addressed
3. Affinity Diagram shows the need to improve charges, billing, forklift tracking, accounting, and processes.
Charges Billing Tracking Accounting Process
We were billed for a I have a credit on I wish we could

The charges are I never received that forklift
forklift that was my P&L but no automate the system
right but the lease
returned three months explanation as to since everything is
amount is wrong
ago why manual
I submitted the
I have charges on
Vendor statements We are getting billed changes to update the
I don’t have anything by that my P&L and not
seem to be off for items like fuel with fleet report but still
serial number here sure what they are
every month no explanation cannot find the lift in
for
the report
We were billed for
I am doubled billed for We don’t have that lift at our
charges from third
the same piece of location even though it is
party delivery
equipment listed in the fleet report
agents
The vendor is I need the serial number
overcharging for instead of model number to
this forklift track lifts
The vendor tracking numbers
and serial numbers don’t
match
4. CTQ tree for accurate billing
Need Driver CTQs
Bill Accurate
Accuracy
Fleet Report
Accurate
Unique
Identifier
Accurate Better Tracking
Fulfillment
Process Visibility
Fast
Easy Accurate
Reconciliation Reconciliation
Visibility
5. A developed operational definition for defect in billing could be :
• Billing should accurately specify the actual costs of the forklifts, match the on-hand
inventory, and attribute the expenses to the correct locations within 30 days.
Process Analysis and Documentation
Learning Objectives
Process maps
Development of Process maps
Written procedures and work instructions

Introduction
A picture speaks a thousand words
GPS
Process
Documentation
Process Maps, Flowcharts, Written Procedures, and Work Instructions
Process Mapping
Process mapping is a graphical representation of a process.

Process Mapping: Features
Is a systematic way of recording all

activities performed
Provides a wider perspective

of the problems and Done by using flowcharts,
opportunities for process written procedures, or
improvement detailed work instructions
Process maps are used

Helps teams and others know
throughout the Six Sigma
how the process is working
Current State journey
! Map the process for what it truly is and not what you or your team think it should be.
Process Mapping
Process mapping is a five-step process.
1. Identify the process and I/O at a high level.
2. Identify the major process steps going a little

lower level in the process than step 1.
3. List Key Measures for each major step identified

in step 2.
4. List key input variables.
5. Classify inputs as either controllable or non-

controllable.
Process Mapping: Example
Java House Coffee has a process for customers to call in an order and then pick it up at the front counter.
Let’s map the process for Java House using the 5-step approach.
1. Identify the process and I/O at a high level
I Customer O
Order u
n
p Work Cup of t
Make Coffee
u Instructions Coffee p
t u
Coffee
s Beans t
s
2. Identify the major process steps going a little

lower level than step 1
Receive
Provide
Customer Fulfill Order Take Payment
Coffee
Order
1 2
$
5 3
4
3. List Key Measures for each major step identified

in step 2.
Receive
Provide
Coffee
Order
Order Time to Transaction Customer

Rate complete Time satisfaction
4. List key input variables
• Phone • Order Ticket • Customer Info • Coffee

• Customer Order • Coffee Beans • Prices • Receipt
• Ticketing • Sugar • Customer
System • Job Aids Money
Receive
Provide
Coffee
Order

5. Classify inputs as either controllable or non-controllable
• Phone (C)
• Customer Knowledge • Order Ticket (C) • Customer
(NC) • Coffee Beans (C) • Verification(C) • Coffee (C)
• Customer Order (C) • Sugar (C) • Prices (C) • Receipt (C)
• Ticketing System (C) • Job Aids (C) • Customer Money (C) • Outdoor Temp (NC)
Receive
Provide
Coffee
Order

What Is a Flowchart?
A flowchart is a pictorial representation of the steps of a process.
Provide a common Flow charts Lead to process

understanding of the
standardization
process flow
Help see how

different process Make it easier to train
steps work together employees
! After the process is visualized, rework loops and redundant steps can be identified and resolved.
Flowcharting Symbols
PROCESS ARROW DIAMOND BULLET CIRCLE PARALLEL- TORN OVAL

Used to Shows Shows Used to Used OGRAM RECTANGLE Shows the
show an the where a indicate when a Indicates Shows input that
activity direction question delay flowchart where where a triggers
performe of flow is being points in needs to input or document is the
d in the from one asked the continue output needed as process
process step to process to data is an input or and the
another another needed in made as an outputs
page the output that end
process the
process
Flowcharting: Example
The flowchart shows the processes in Java Coffee House’s “Receive Customer Order” step:
Customer Calls
Answer Phone
Share Specials
Ask for Order
N Customer
knows what
to order
Provide
recommendations Y
or information
Enter order in
ordering system
Flowchart Analysis
Points in the process where it slows down

• Where are the long chains of tasks?
• Which activities can begin sooner than shown?
Rework loops
• Where are similar tasks being redone by other groups?
Problem areas
• Where are problems occurring due to lack of training or subpar
equipment?
Non-value added steps

• Which steps in the process should be eliminated?
• Which steps can be combined?
Decision steps
• How often are there NOs or YESs?
Flowchart Analysis: Example
Written Procedures
Written procedures or SOPs are step-by-step guides that help perform a task.
SOP
Written Procedures or SOPs:

 Are simple to understand
 Used when a task is lengthy or complex
 Used in process development phases
 Help avoid making mistakes
 Help streamline processes
 Improve quality
Written Procedures: Example
Work Instructions
Work instructions have more detail than a work procedure.
Work instructions:
 Define how activities in a procedure should
be written in detail
 Provide step-by-step details for a sequence
of activities
Work Instructions
EXAMPLE
1. Take a coffee cup.
2. Pick up the coffee pitcher by the handle.
3. Slowly pour coffee into the cup until coffee
is ¾ of the way full.
! For a less detailed process, select flowchart and for a detailed process, select work instructions.
Work Instructions: Example 1
Source: http://www.slideshare.net/techdude/instructions-for-how-to-make-a-new-pot-of-coffee
Work Instructions: Example 2
Key Input and Output Variables
Process improvement – Needs Key Process Output Variables (KPOV)

and
Key Process Input Variables (KPIV) to be identified and measured
Outcome from a Examples:

process  Customer complaints
 Cycle time
KPOV
Examples:
Significant impact
KPIV  Using a clean cup or a dirty cup
on output
 Length of brewing time
Key Input and Output Variables
Process improvement – Needs KPOV and KPIV to be identified and measured
 Metrics for key process variables: Relationship between

 Percent Defective variables depicted
 Operation cost with SIPOCS
 Elapsed times (suppliers, inputs,
Define
 Backlog quantity process, outputs,
 Documentation errors customers) or Cause
and Effect Matrix.
Process owners
Key Process Input
?
Variables (KPIV)
Key Process Output
Variables (KPOV)
Cause and Effect Matrix
A sample Cause and Effect Matrix or X-Y Diagram
Multiply the values from (b) for each input

variable, individually, with the values in (a).
Adding the results gives (c).
Capture the
impact value Impact Scale: 0-none; 1-minimal;
Process 3-marginal; 9-highest
Insert the weight
Date
for each output
List the output

variables
List the input

variables
Key Takeaways
Process mapping is a 5-step process.
A flowchart is a pictorial representation of all the steps of a

process in consecutive order.
A flowchart is used to evaluate each activity step for

opportunity conditions.
A written procedure or standard operating procedure (SOP) is

a step-by-step guide to completing a task.
To improve a process, the Key Process Output Variables and

Key Process Input Variables should be measured.
The cause and effect diagram helps correlate process inputs

and Outputs.
Knowledge Check
Knowledge
Check Your team is making a process map for the patient registration process at a hospital
1 facility and has just finished listing the major steps. What should your team do next?
A. Scope the project
B. List key measures
C. List key input variables
D. Celebrate
Knowledge
Check Your team is making a process map for the patient registration process at a hospital
1 facility and has just finished listing the major steps. What should your team do next?
A. Scope the project
B. List key measures
C. List key input variables
D. Celebrate
In process map creation, after the major steps are identified, the next step is to list the key measures for success at
each step.
Knowledge
Check
Which of the following is NOT a process documentation tool?
2
A. Flow Charts
B. Process Maps
C. Cause and Effect Matrix
D. Written Work Instructions

Knowledge
Check
Which of the following is NOT a process documentation tool?
2
A. Flow Charts
B. Process Maps
C. Cause and Effect Matrix
D. Written Work Instructions
The Cause and Effect Matrix is a prioritization tool and is not used to document a process.
Knowledge
Check
What is the purpose of process mapping?
3
A. To visualize the steps in the process
B. To understand the key measures and metrics
C. To identify improvement opportunities
D. All of the options

Knowledge
Check
What is the purpose of process mapping?
3
A. To visualize the steps in the process
B. To understand the key measures and metrics
C. To identify improvement opportunities
D. All of the options
The purpose of process mapping includes all the answer choices given.
Probability and Statistics
Learning Objectives
Outline probability basics
Explain permutations and combinations
List the addition and multiplication rules

Roles of Probability and Statistics
Business
Business phrase 3 out of 4 dentists choose whitening

toothpaste
Economics
To understand the relationship between supply and

demand
Banking
$ To estimate
number of people making deposits vs.
number of people requesting loans
Government
To design federal based on statistical data to estimate

budgets expected expenditure and revenue
Probability Basics and Statistical Rules
Probability
Probability refers to the chance of something occurring or happening.
Random Experiment Elementary Outcomes Sample Space
{HT}
• A chance All possible results Set of elementary

event • Heads outcomes
• A single coin • Tails
toss
Probability: Characteristic Properties
PROPERTY 2 PROPERTY 3
Impossible event Certain event
PROPERTY 1
 Probability of an event 
0 to 1
! The total probability of the sample space or all elementary outcomes must be 100% or 1.
Probability of an Event
For a particular event, if:
N – possible outcomes that are equally likely
f – a specific type of event or outcome
f
Then, Probability of the event =
N
Example:
In an event of a coin toss, what is the probability of getting a “head”?
• There is a probability of one of two possible outcomes, head or tail.
f 1
P H = =
N 2
Probability: Example
What is the probability of getting a three followed by two when the dice are thrown twice?
Experiment: Rolling 1 dice twice
Desired event: roll 1 = 3; roll 2 = 2
The probability of getting a 3 followed by 2 can happen only in one way:
Total number of events 1

Probability of an event = = = 2.7%
Total number of 𝑜𝑢𝑡𝑐𝑜𝑚𝑒𝑠 36
Probability: Basic Operations
An Event is a set of elementary outcomes.
The Probability of an Event = Sum of the Probabilities of the Outcomes in the Set
Example: Some events of rolling a dice twice.
Event Elementary Outcomes Probability

A: Dice add up to 3 { (1,2),(2,1) } P(A) = 2/36 = 5.5%
B: Second roll is a 2 { (1,2), (2,2), (3,2), (4,2), P(B) = 6/36 =16.7%
(5,2), (6,2) }
We can combine events to make other events using AND, OR, or NOT.
Probability Concepts
Mutually Exclusive Events Mutually Inclusive Events
Event 1 Event 2 Event 1 Event 2
Relates to the Addition or OR rule

Addition Rule for Mutually Inclusive Events
In the scenario from the previous screen:

Event A: Dice add up to 3 ; Event B: Second roll is a 2.
• A OR B is the entire shaded

area where either event
occurs.
• A AND B is the darker shaded

area where both shaded areas
overlap (dice add up to 3 and
second roll is a 2).
P( A or B) = P(A) + P(B) – P (A and B)
ADDITION RULE for Mutually Inclusive Events
2/36 + 6/36 – (1/36) = 7/36 = 19.4%

Addition Rule for Mutually Inclusive Events
Sometimes, there is no overlap shared between outcomes between A and B.

Event A: Dice add up to 3 ; Event B: Second roll is a 4.
• A OR B is the entire
shaded area where
either event occurs.
P( A or B) = P(A) + P(B)
ADDITION RULE for Mutually Exclusive Events
2/36 + 6/36 = 8/36 = 22.2%

Subtraction Rule Or Not Rule
Used when it’s easier to calculate the opposite probability

Event A: Double 2’s NOT thrown (The event “NOT A” is a Double 2 is thrown.)
P(A) = 1 - P(NOT A)
Subtraction RULE
1 – 1/36 = 35/36 = 97.2%

Probability Concepts
Independent events Dependent events
Probability of Probability of
occurrence of one occurrence of one
event event
affect / influence
does NOT affect / influence
Probability of Probability of
occurrence of another occurrence of another
event event
Relates to the Multiplication or AND rule

Multiplication Rules for Independent Events
The Multiplication Rules or AND rules depend on the event dependency.
Example Special multiplication rule is applied
If events A, B, C, . . . are independent
P (A & B & C & …) = P(A) ∗ P(B) ∗ P(C)...

Multiplication Rules for Independent Events: Example
What is the probability of occurrence of all the following events?
P(A & B & C) = P(A) ∗ P(B) ∗ P(C)

Flip a coin and get a head, draw a card 1 1 1
and get an ace, and throw a dice and get a = ∗
2 13
∗
6
1.
= 0.0064 = 0.64%
A
Second Rule For Dependent Variables
Example General multiplication rule is applied
If A and B are two dependent events
P(A ∩ B) = P(A) ∗ P(B|A)
P(B|A) = P(B and A)/ P(A)

Second Rule For Dependent Variables: Example
A bag contains 6 golden coins and 4 silver coins. Two coins are drawn without replacement from the
bag. What is the probability that both of the coins are silver?
4 3
P(A) = ; P(B|A) =
10 9
P(A ∩ B) = P(A) ∗ P(B|A)
4 3 12
= ∗ =
10 9 90
= 0.1334 = 13.34%
Permutation
Permutation is the total number of ways in which a

set, group, or number of things can be arranged.
nP n!
r= p (n, r) =
(n−r)!
n = number of total items

r = number of selections or group size
x! = x * (x-1) *(x-2)*…*(x-(x-1))
Combination
The unordered arrangement of a set, group, or

number of things is known as combination.
nC n!
r = c (n, r) = r! (n−r)!
n = number of total items

r = number of selections or group size
x! = x * (x-1) *(x-2)*…*(x-(x-1))
Permutation and Combination: Example
From a group of 10 employees, a company has to select 4 for a particular project. In how many ways can the selection
happen, given the following conditions?
a. The arrangement of employees needs to be different due to 4 different team roles.
b. The arrangement of employees need not be different because each member will have the same role.
Here, n = 10 and r = 4
a. From a group of 10 employees, 4 employees need to be selected. The arrangement needs to be different.
nP n! 10!
r = p (n, r) = (n−r)!
= 10 P 4 = p (10, 4) =
(10−4)!
= 5040 ways
[EXCEL “=PERMUT(10,4)” =5040]
b. From a group of 10 employees, 4 have to be selected. The arrangement of these 4 employees need not be different.
nC n! 10!
r = c (n, r) = r! (n−r)!
= 10 C 4 = c (10, 4) =
4! (10−4)!
= 210 ways
[EXCEL “=COMBIN(10,4)” =210]
Use Excel functions “= PERMUT( )” and “= COMBIN( )”

Key Takeaways
Probability refers to the chance of something occurring or

happening.
P(E) = "Probability of an event"=𝒇/𝑵
When the probability of occurrence of an event does not

affect the probability of the occurrence of another event, then
the two events are said to be independent.
When the probability of one event occurring influences the

likelihood of another event, the events are said to be
dependent.
Permutation is the total number of ways in which a set, group,

or number of things can be arranged.
The unordered arrangement of a set, group, or number of

things is known as combination.
Knowledge Check
Knowledge
Check You have two cars. The probability of each one starting is 60%. What is the likelihood
1 that at least one car starts?
A. 36%
B. 64%
C. 84%
D. 24%
Knowledge
Check You have two cars. The probability of each one starting is 60%. What is the likelihood
1 that at least one car starts?
A. 36%
B. 64%
C. 84%
D. 24%
P(A) is car 1 starting and P(B) is car 2 starting.

P (A OR B) = P(A) + P(B) – P(A AND B) = .6 + .6 – (.36) = 1.2 - .36 = .84 = 84%
Knowledge
Check You want to list three desserts from a menu of nine. How many different ways can this
2 be done?
A. 504
B. 84
C. 27
D. 12
Knowledge
Check You want to list three desserts from a menu of nine. How many different ways can this
2 be done?
A. 504
B. 84
C. 27
D. 12
This a combination problem since the order in which the desserts are listed is not of concern. Therefore, using the
EXCEL function “=COMBIN(9,3)”, the resulting value is 84.
Knowledge
Check You want to list your three favorite desserts in order from a menu of 11. How many
3 different ways can this be done?
A. 990
B. 165
C. 33
D. 14
Knowledge
Check You want to list your three favorite desserts in order from a menu of 11. How many
3 different ways can this be done?
A. 990
B. 165
C. 33
D. 14
This a permutation problem because the order that the desserts are listed in is of concern. Therefore, the EXCEL
function to be used is “=PERMUT(11,3)”, which results in the value 990.
Collecting and Summarizing Data
Learning Objectives
List the types of measuring scales
Identify the types of data
Identify the measures used to summarize data
Describe the types of data collection methods
Explain the concept of descriptive statistics
Present the data visually using graphical methods

Introduction
Collecting Data
Meaning of Data
Data is a collection of facts from which conclusions may be drawn.

Types of Data
Attribute data (Discrete) Variable data (Continuous)

Attribute Data (Discrete)
Attribute data is countable and only includes integers such as 5, 100, and 500.
How
often?
40%
defective
10 boxes How
many?
What type?
6 customer
?
complaints
Examples
Number of defective products | Percentage of defective products | Frequency of customer
complaints | Type of call received
Variable Data (Continuous)
Variable data can be measured on a continuous scale.
What
volume?
How long?
How far?
?
Examples
Height | Weight | Time taken to complete a task
Selecting Data Type
? What type of data should be collected?
Analysis Interpretation
Selecting Data Type
What type of data is

• Critical to Quality (CTQs) • To enable collecting,
selected?
parameters analyzing, and drawing
• Key Process Output Variables • Data that fits the metrics for inferences from the right set
(KPOVs) the key variables of data
• Key Process Input Variables
(KPIVs)
What variables have been Why should the data type
identified for the process? be identified?
It may not be easy to convert attribute data to variable data in the absence of assumptions or
additional information, which can include retesting all units.
Measurement Scales
Ordinal
Nominal
(ranking)
Interval Ratio
Measurement Scales
Description
Nominal
• Data consists of only names or categories and ordering is not possible.

• It is considered the least informative of all scales.
Ordinal
(ranking) • The mode is used as the measure of central tendency.
Example
Interval A bag of colored balls
Ratio
Measurement Scales
Description
Nominal
• Data is arranged in order and values can be compared.

• Median or mode is the measure of central tendency.
Ordinal
(ranking)
Example
A-3
Restaurant ratings
Interval B-5
C-2
Ratio D-4
Measurement Scales
Description
Nominal
• This is used for ranking items in step order along a scale of equidistant points.
• Mean, median, or mode can be used for central tendency.
Ordinal
(ranking) 200⁰F
Example
100⁰F
Temperature of three metal rods 600⁰F
Interval
Ratio
Measurement Scales
Description
Nominal
• This represents variable data and is measured against a known standard or
increment. However, this scale also has an absolute zero (no numbers exist below
Ordinal zero).
(ranking)
• Median or mode, as well as arithmetic, geometric, or harmonic means can be
used.
Interval Examples
• Mass
• Length
• Volume 10 lbs.
Ratio
Data Collection Methods
Census Sampling
Experiment Observations
Census
A study that obtains data from every member of a population
Sampling
Experiment
Observations
Census A study that obtains data from a subset of a population
Population
Sampling
Experiment Sampling
Observations
Census
A controlled study to understand cause and effect relationships
Sampling
Experiment EFFECT CAUSE
Observations
Census
A study of cause and effect relationships without any controls
Sampling
EFFECT CAUSE
Experiment
Observations
Meaning of Sampling
Sampling is the act, process, or technique of selecting an appropriate subset from a group or
population.
Types Of Sampling
Non-probability technique
Sample group chosen from a where a single subject or group Samples taken from each
population at random of subjects is selected for a stratum or sub-group of a
period, analyzed, and followed population
by the next sample
Random Sequential Stratified

sampling sampling sampling
Simple Random Sampling vs. Stratified Sampling
Simple Random Sampling vs. Stratified Sampling
● Stratified sampling is time

● Simple random sampling is easy to
consuming and requires more
.
carry out.
effort.
● Possibility of erroneous results is ● Possibility of errors is

high. minimized.
● This type of sampling cannot ● When done correctly, it is

indicate possible causes of capable of showing causes of
variation. variation.
In practice, you will calculate means and standard deviations from the collected sample.
Data Collection Plan
Helps the team determine how process performance will be

measured or quantified, which will help drive decision-making
Provides structure and consistency around the process of

collecting data, which can be variable (continuous) or attribute
(discrete)
Provides a common language for the team

Data Collection Plan: Example
Develop a data collection plan based on the process map and input priority matrix.
Measure Type of Type of Data Operational Specification Target Data Collection Sampling Baseline Sigma
Measure Definition Form
Input, output, Select as an Select if Description to The least Customer’s detail How to collect the The DPO or DPMO
and process input (I), measure is enable a common acceptable performance data method to
measure the Process continuous or understanding and product or against some obtain
team will collect measure (P) discrete prevention of service requirement informatio
or output ambiguity performance n from the
(O) to the entire
customer population
Example: Speed O, P Continuous From end of call to 30 minutes As soon as Histogram Represent Unit: Meal
knock on door possible ative Defect: Late
Oppty: 3
Process time P Continuous Time to process 12 minutes 8 minutes Customized checklist 100% daily Unit: Report
report once that contains: Defect: Process
database is Date, region, number time > 12
populated of reports, process minutes
time and approval Oppty: 1
time
Approval time P Continuous Time to review and 5 minutes 3 minutes Customized checklist 100% daily Unit: Report
approve report that contains: Defect:
Date, region, number Approval time >
of reports, process 5 minutes
time and approval Oppty: 1
time
Source: http://asq.org/service/body-of-knowledge/tools-data-collection-plan
Data Collection Methods: Check Sheets
A check sheet is a structured, prepared form for collecting and analyzing data.
Use of Check Sheets
• Data can be observed and collected repeatedly by the same individual or from the same location.
• Data is collected from a production process.
Data Coding
Data coding is the process of converting and condensing raw data into categories and sets so that
they can be used for further analysis.
Data Coding: Benefits
• Simplifies large quantities of data
• Enables easy entry of process data into computers
Data coding • Facilitates data analysis
• Enables organized data representation
• Eliminates data repetition

Population vs. Sample
Greek letters refer to values that represent a population’s characteristic, also known as a parameter.
𝜇 = 𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛 𝑚𝑒𝑎𝑛
𝜎 = 𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛
Population
Roman letters represent values for a

sample’s characteristic, also known as a
statistic
𝑋ത = sample mean
Sampling s or ෝ
σ = sample standard deviation
Summarizing Data
Descriptive Statistics: Central Tendency and Dispersion
Measures of dispersion
describe the spread of
A measure of central values.
tendency is a single value
that indicates the central Higher the variation of data
point in a set of data. points, the higher the
spread of the data.
Measure of central tendency Measures of dispersion

Measures of Central Tendency
The three most common measures of central tendency:
Mean Median Mode

Mean Median Mode
● Most common measure of central tendency

● Given by the sum of entries in a dataset and divided by the number of entries
● Also called the average or arithmetic mean
Formula: Mean = 𝑛
σ1
𝑥𝑖
𝑛
Mean Median Mode
● Also known as positional mean

● Number in the middle of the dataset
● Mean of the middle two numbers in an even dataset
● Calculated using the following formula for odd dataset
Formula: Median =
𝑛+1
2
Mean Median Mode
● Also known as frequency mean

● Value that occurs most frequently in a dataset
Measures of Central Tendency: Example
? The following is a sample dataset for the thickness of boxes.

Calculate the mean, median, and mode.
4, 8, 1, 6, 6, 2, 9, 3, 6, 7 Sorted 1, 2, 3, 4, 6, 6, 6, 7, 8, 9
!
1+2+3+4+6+6+6+7+8+9 52
Mean = = = 5.2
10 10
Median = 6
Mode = 6
Impact of Outliers On Mean
1, 2, 3, 4, 6, 6, 6, 7, 8, 9 Changed 1, 2, 3, 4, 6, 6, 6, 7, 8, 100
1 + 2 + 3 + 4 + 6 + 6 + 6+ 7 + 8 + 100
Mean = = 14.3
10
When the dataset has outliers, median is preferred over mean as a measure of central tendency.
Illustration based on Distributions
Symmetric
Skewed left Skewed right

Measures of Dispersion
Range
Measures of
Dispersion
Standard
Variance
deviation
Range
The range of a particular set of data is the difference between the largest value and the smallest
value in the data.

Calculate the range.
1, 2, 3, 4, 6, 6, 6, 7, 8, 9
Range = Maximum – Minimum
! = 9–1
= 8
Variance
Variance is the average of squared mean differences and shows the variation in a dataset.
∑ (𝑥𝑖 − 𝑥)2 ∑ (𝑥𝑖 −μ)2

Sample Variance = s2 = Population Variance = σ2 = 𝑁
𝑛 −1
Variance: Example

Calculate the variance.
1, 2, 3, 4, 6, 6, 6, 7, 8, 9
!
(1 − 5.2)2 +(2 − 5.2)2 +(3 − 5.2)2 +(4 − 5.2)2 +(6 − 5.2)2 +(6 − 5.2)2 +(6 − 5.2)2 +(7 − 5.2)2 +(8 − 5.2)2 +(9 − 5.2)2
10 − 1
61.6/(10-1)
= 6.84 cm^2
Standard Deviation
The range of a particular set of data is the difference between the largest and the smallest values in
the data.
Sample Standard Deviation = s Populations Standard Deviation = σ

∑ (𝑥𝑖 − 𝑥)2 ∑ (𝑥𝑖 −μ)2
= = 𝑁
𝑛 −1
Standard Deviation: Example

Calculate the standard deviation.
1, 2, 3, 4, 6, 6, 6, 7, 8, 9
! Variance = 6.84
Standard deviation = 6.84 = 𝟐. 𝟔𝟐
Microsoft Excel for Descriptive Statistics
Microsoft Excel for Descriptive Statistics
Steps to use Data Analysis Tool in Microsoft Excel

Normal Curve: Derivation from Mean and Standard Deviation
1, 2, 3, 4, 6, 6, 6, 7, 8, 9
1s to left of mean = Mean = 5.2 1s to right of mean=

5.2 – 2.62 = 2.58 5.2 + 2.62 = 7.82
Frequency Distribution
Frequency distribution is the grouping of data into mutually exclusive categories, showing the
number of observations in each class.
Number Tally Frequency
0 IIII 4
1 IIII I 6
2 IIII 5
3 III 3
4 II 2
Make a table with

separate columns
Divide the results Add the number
for the interval Record the number
into intervals and of tally marks in
numbers, the of observations in
count the number each interval and
tallied results, and each interval with a
of results in each record them in the
the frequency of tally mark.
interval. Frequency column.
results in each
interval.
Histogram
A histogram is similar to a bar graph, except that the data in a histogram is grouped into intervals.
1.5, 1.5, 2, 3, 3, 3, 5, 4, 4, 4, 4.5, 5, 6, 9.5, 10
Minutes Number of orders

spent (X) (Frequency) (Y)
0-2 3
2-4 7
4-6 3
6-8 0
8 - 10 2
Cumulative Frequency Distribution
A cumulative frequency distribution is the sum of the category and all categories below it in a
frequency distribution.
The main purpose is to study a population or sample to find out how many observations fall
lower or higher than a particular category of interest.
Cumulative Frequency Distribution
37, 49, 54, 91, 60, 62, 65, 77, 67, 81
Cumulative Cumulative
Lower Value Upper Value Frequency Percentage
Frequency Percentage
35 44 1 1 10 10
45 54 2 3 20 30
55 64 2 5 20 50
65 74 2 7 20 70
75 84 2 9 20 90
85 94 1 10 10 100
Frequency vs. Cumulative Frequency Distributions
Frequency Distribution Graph Cumulative Frequency Distribution Graph

Stem and Leaf Plots
A stem and leaf plot is used to present data in a graphical format to enable visualizing the
shape of a distribution.
78, 81, 82, 68, 65, 59, 62, 58, 51, 62, 62, 71, 69, 64, 67, 71, 62, 65, 65, 74, 76, 87,
82, 82, 83, 79, 79, 71, 82, 77, 81
Stem Leaf
5 189
6 22224555789
7 111467899
8 11222237
Box and Whisker Plots
Cumulative %
IQR = Upper Quartile Value – Lower Quartile Value

Outlier is any value 1.5 *IQR units or more away from the upper or lower quartile
12, 13, 5, 8, 9, 20, 16, 14, 14, 6, 9, 12, 12
Rewrite the data in increasing order.
5, 6, 8, 9, 9, 12, 12, 12, 13, 14, 14, 16, 20
Find the median for the dataset.
5, 6, 8, 9, 9, 12, 12, 12, 13, 14, 14, 16, 20
Find the lower and upper quartiles.

5, 6, 8, 9, 9, 12, 12, 12, 13, 14, 14, 16, 20
Lower quartile = 8.5 Upper quartile = 14

Draw a number line to include all the

data points.
Locate the main median, 12, using a

vertical line. Locate the lower and
upper quartiles (8.5 and 14) and join
them with the median by drawing
boxes.
Extend whiskers from either ends of

the boxes to the smallest and largest
numbers (5 and 20) in the dataset.
The quartiles split the data into four equal parts:

● Numbers lesser than 8.5
Inference
● Numbers between 8.5 and 12
Range = 20 – 5 = 15
● Numbers between 12 and 14
● Numbers greater than 14
Comparison of Box and Whisker Plots
Scatter Diagrams: Purpose
A scatter diagram can be used to:
Understand the Identify the

correlation between root cause
two variables
Examine cause-and-
effect relationships
Scatter Diagrams: Types of Correlation
Perfect positive Moderate positive Moderate negative Perfect negative

No relation
correlation correlation correlation correlation

No relation
In perfect positive correlation, as the value of X increases, the value of Y also increases proportionally.
Example: Correlation between consumption of coffee and consumption of milk
Coffee
Milk Consumption
Consumption in
in L (Y)
ml (X)
300 15
350 17.5
400 20
450 22.5
500 25
550 27.5
600 30

No relation
In moderate positive correlation, as the value of X increases, the value of Y also increases but not in the same
proportion. Example: Correlation between monthly salary and monthly savings
Salary (in thousands) (X) Savings (in thousands) (Y)

45 6
48 6.2
52 8
55 8.2
57 8.5
58 8.6
60 10
65 12

No relation
When a change in one variable has no impact on the other, there is no correlation between them.
Example: Relation between number of recent graduates and open job positions in a city
Recent Graduates Open Job Positions

(in thousands) (X) (in thousands) (Y)
80 15
100 15
90 18
95 20
89 20
90 15
95 15

No relation
In moderate negative correlation, as the value of X increases, the value of Y decrease but not in the same
proportion. Example: Correlation between the price of a product and the number of units sold
Unit Price of Product

Units Sold (Y)
(in thousands) (X)
30 1000
32 980
33 970
35 965
38 950
40 920
42 910

No relation
In perfect negative correlation, as X increases, Y decreases proportionally.

Example: Correlation between project time extension and project success
Time Extension Project Success Probability

(in days) (X) (in percentage) (Y)
2 80
5 60
7 40
10 20
13 00
Other Visualization Tools: Pareto Charts
Other Visualization Tools: Run Charts
Normal Probability Plots
Normal probability plots are used to identify if a dataset is normally distributed.
A normally distributed dataset forms a straight line in a normal probability plot.

.127, .125, .123, .123, .120, .124, .126, .122, .123, .125, .121, .123, .122, .125, .124, .122, .123, .123,
.126, .121, .124, .121, .124, .122, .126, .125, .123
Construct a cumulative frequency distribution table.
Calculate the mean rank probability estimate.
Cumulative frequency
Mean rank probability estimate = * 100
(n + 1)
Where n = sample size

Construct a cumulative frequency distribution table and calculate the mean rank.
Cumulative (Cumulative
X Frequency Mean Rank (%)
Frequency Frequency)/(n+1)
0.120 1 1 1/28 4
0.121 3 4 4/28 14
0.122 4 8 8/28 29
0.123 7 15 15/28 54
0.124 4 19 19/28 68
0.125 4 23 23/28 82
0.126 3 26 26/28 93
0.127 1 27 27/28 96
n = 27
Plot the graph on log paper or using Minitab, a statistical software used in Six Sigma.
Good to Know
A set of raw numbers is not easily understood by most people.
GOOD TO
KNOW
The key is to easily and visually depict centrality, dispersion, and the
data distribution shape.
Remember the point of summarizing data is to make a set of

numbers more understandable.
Key Takeaways
The two types of data are attribute (discrete) and variable

(continuous).
The scales of measurement are nominal, ordinal, interval, and

ratio.
Data may be collected by census, sampling, experiment, and

observations.
The types of sampling are random, sequential, and stratified.
Data can be summarized using measures: measures of central

tendency and measures of dispersion.
Mean, median, and mode are the measures of central tendency.
Range, variance, and standard deviation are the measures of

dispersion.
Knowledge Check
Knowledge
Check A team counts how many times a defect occurs in a product and every part is
1 measured. What type of data collection is used?
A. Sampling
B. Experiment
C. Observation
D. Census
Knowledge
Check A team counts how many times a defect occurs in a product and every part is
1 measured. What type of data collection is used?
A. Sampling
B. Experiment
C. Observation
D. Census
When every item of a population is considered it is considered a census.

Knowledge
Check A coding team has documented the number errors in the system modules over 9 days
and wants to create a box blot. What is the median, lower quartile, and upper quartile
2 values for the following? 14,10,12,10,13,13,15,16,13
A. 13,11,14
B. 11,13,14
C. 13,11,14.5
D. 13,14.5,11
Knowledge
Check A coding team has documented the number errors in the system modules over 9 days
and wants to create a box blot. What is the median, lower quartile, and upper quartile
2 values for the following? 14,10,12,10,13,13,15,16,13
A. 13,11,14
B. 11,13,14
C. 13,11,14.5
D. 13,14.5,11
This data sorted is [10,10,12,13,13,13,14,15,16] in which the median is at 13, the lower quartile value is the average of
10 and 12, and the upper quartile is the average of 14 and 15.
Knowledge
Check When Y increases in the same proportion as the decrease in X, what type of correlation
3 is represented?
A. Negative
B. Positive
C. Perfect Positive
D. Perfect Negative
Knowledge
Check When Y increases in the same proportion as the decrease in X, what type of correlation
3 is represented?
A. Negative
B. Positive
C. Perfect Positive
D. Perfect Negative
In a perfect correlation, there is a 1:1 relationship between the Y and X variables in which both change in the same
magnitude. In a negative relationship, one variable increases, while the other decreases.
Knowledge You want to know how satisfied customers who purchased your products are. To find
Check out, you select names of customers who purchased products in the last three months.
4 Each customer has an equal chance of being selected. What sampling method is used
in this scenario?
A. Stratified
B. Random
C. Sequential
D. Mean
Knowledge You want to know how satisfied customers who purchased your products are. To find
Check out, you select names of customers who purchased products in the last three months.
4 Each customer has an equal chance of being selected. What sampling method is used
in this scenario?
A. Stratified
B. Random
C. Sequential
D. Mean
With random sampling, each unit has the same chance of being selected.
Knowledge
Check What is the standard deviation for the data subset below?
5 23, 45, 34, 46, 66, 51, 24, 33, 44, 26
A. 39.2
B. 13.01
C. 13.72
D. 39
Knowledge
Check What is the standard deviation for the data subset below?
5 23, 45, 34, 46, 66, 51, 24, 33, 44, 26
A. 39.2
B. 13.01
C. 13.72
D. 39
The sample standard deviation using Excel’s =STDEV.S function is 13.72.

Knowledge
Check A team wants to compare the distributions of different processes. Which visual tool
6 should it use?
A. Pareto Chart
B. Scatter Plot
C. Normality Plot
D. Box and Whiskers Plot

Knowledge
Check A team wants to compare the distributions of different processes. Which visual tool
6 should it use?
A. Pareto Chart
B. Scatter Plot
C. Normality Plot
D. Box and Whiskers Plot
A box and whiskers plot is a simple tool to display the distributions of many groups.
Statistical Distributions
Learning Objectives
Identify the types of statistical distributions
Explain the Central Limit Theorem

Scenarios
What is the likelihood that there are What is the probability that he What is the chance that a customer
no more than 10 defects per day? achieves a 30-minute turn-around- will browse through the merchandise
time? in the store before making a
purchase?
Statistical Distributions
Classes of Distribution
Classes of Distribution
• Based on assumed model of • Describes the population

distribution • Use the measured data to parameters based on the
determine a model to describe sample data using a particular
• Used to find the chances of a the data used distribution model
certain outcome/event to occur
Inferential
Probability Statistics
Statistics
Key Terms
A distribution of a variable is a description of the relative number of times

Distribution of a variable
each possible outcome will occur in a number of trials.
A function or equation that describes the probability a certain value will

Probability function
occur is called a probability function.
Probability Mass Function (PMF) is a function that gives the probability

Probability mass function
that a discrete random variable is exactly equal to some value.
Probability Density Function is a function that gives the probability that a

Probability density function
continuous random variable is exactly equal to some value.
A function or equation that describes the cumulative probability of a given

Cumulative distribution function value or any value smaller than it will occur is called the cumulative
distribution function.
Types Of Statistical Distribution
Statistical
Distributions
Discrete Continuous
Probability Probability
Distribution Distribution
Binominal Poisson Normal Chi-square

T-distribution F-distribution
Distribution Distribution Distribution Distribution
Discrete Probability Distribution
Discrete probability distribution is characterized by the probability mass function.
These distributions help in predicting the sample behavior that has been observed in a population.
Population
Sample
Illustration of the Probability Mass Function (PMF)
Binomial Distribution
Binomial distribution is a probability distribution for the discrete data.
Based on the Bernoulli Used best in situations where the

process to predict sample size is less than 30 and
sample behavior less than 10% of population
Used to deal with Expressed as a percentage of

defective items non-defective items
Binomial Distribution: Formula
n n-
P(R) = C r* p r* (1-p) r
Where,
P(R) = probability of exactly (r) successes out of a sample size of (n)
p = probability of success
r = number of successes desired
n = sample size
Key Calculations of Binomial Distribution
Mean 𝜇 = 𝑛𝑝
n = Sample size
p= Probability of success
Standard deviation 𝜎 = √𝑛𝑝(1 − 𝑝)
Sample factorial 5! = 5 ∗ 4 ∗ 3 ∗ 2 ∗ 1 = 120

calculation 4! = 4 ∗ 3 ∗ 2 ∗ 1 = 24
Binomial Distribution: Example
? Using binomial distribution formula, find the probability of getting 6 heads in 10 coin tosses.
!
Outcomes are statistically independent.
Therefore,
p = probability of success = 0.5 (this remains fixed over time)

n = sample size = 10
r = number of successes desired = 6
P R = 10
6
∗ 0.56 ∗ 1 − 0.5 10−6
= 0.205078 = 20.5%
=BINOM.DIST(successes, trails, probability for success, cumulative distribution?)

=BINOM.DIST( 6, 10, 0.5, FALSE) = 20.5%
Poisson Distribution
Poisson distribution is an application of the population knowledge to predict the sample behavior.
Used to predict the number

Used for discrete data
of defects
Used to describe the probability

distribution of an event with
respect to time or space Used where the number of
trials is large and tends
towards infinity
Describes discrete data
resulting from a process
Used where the probability of

Deals with integers which success in each trail is very small
can take any value
Poisson Distribution: Formula
𝑋 −λ
λ ∗ e
P 𝑥 =
𝑥!
Where,
P(x) = Probability of exactly (x) occurrences in a Poisson distribution (n)
λ = Mean number of occurrences during interval
x = Number of occurrences desired
e = Base of the natural logarithm (equals 2.71828)
Mean of a Poisson Distribution (µ) = λ

Standard Deviation of a Poisson Distribution (σ) = λ
Poisson Distribution: Example
?
The past records of a traffic intersection shows that the mean number of accidents every
month is three at this junction. Assume that the number of accidents follows a Poisson
distribution and calculate the probability of number of accidents happening in a month.
Given: =15 per month
! Now, probability of zero accidents per week P 0 =

30 ∗ e−3
0!
31 ∗ e−3
= 0.0498 = 5.0%
Probability of exactly one accident per week P 1 = = 0.1494 = 15.0%

1!
Probability of more than two accidents per week = 1 – [P(0)+P(1)+P(2)] = 1 –
[0.0498+0.1494+0.2240]
= 0.5768 = 57.7%
=POISSON.DIST(successes desired, average of past successes, cumulative distribution?)

=POISSON.DIST( 0, 3, FALSE) = 5.0% OR POISSON.DIST(2,3,TRUE) = 42.3%
Continuous Probability Distribution
Continuous probability distribution is characterized by the probability density function.
Variable is continuous if the Distributions help to predict the

range of possible values fall sample behavior observed in a
along an infinite continuum population
Normal Distribution
The Normal or Gaussian distribution is a continuous probability distribution.
Illustrated as N (µ, σ) Distribution is bell or upside down

bath tub shaped and symmetrical
Higher frequency of values The total area under the normal

around the mean and lesser curve p(x which is found in the
occurrences away from it distribution) = 1.
Used as a first approximation

to describe real-valued Distribution is continuous and
random variables symmetrical
Normal Distribution with Mean = 100
Standard Deviation = 10
Helps in finding probabilities for
To standardize comparison of
data points anywhere within the
dispersion a standard Z
distribution
variable is used
Normal Distribution: Formula
(Y − µ)
Z=
σ
Where,
Z = number of standard deviations between Y and the µ
Y = Value of the data point in concern
µ = Mean of the population
σ = Standard deviation of the population
Normal Distribution: Z-Table
The probability of areas This probability is the area

under the curve is 1. under the curve to the left of
point a+ to 0.
Normal distribution Standard normal

Uses actual data: distribution
Average = 25 Standardized data to:
Standard deviation = 5 Average = 0
Standard deviation = 1
Normal Distribution: Left Tail Z-Table
Z 0.0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09
0.0 0.5000 0.5040 0.5080 0.5120 0.5160 0.5199 0.5239 0.5279 0.5319 0.5359
0.1 0.5398 0.5348 0.5478 0.5517 0.5557 0.5596 0.5636 0.5675 0.5714 0.5753
0.2 0.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0.6141
0.3 0.6179 0.6217 0.6255 0.6293 0.6331 0.6368 0.6406 0.6443 0.6480 0.6517
0.4 0.6554 0.6591 0.6628 0.6664 0.6700 0.6736 0.6772 0.6808 0.6844 0.6879
0.5 0.6915 0.6950 0.6985 0.7019 0.7054 0.7088 0.7123 0.7157 0.7190 0.7224
0.6 0.7257 0.7291 0.7324 0.7357 0.7389 0.7422 0.7454 0.7486 0.7517 0.7549
0.7 0.7580 0.7611 0.7642 0.7673 0.7704 0.7734 0.7764 0.7794 0.7823 0.7852
0.8 0.7881 0.7910 0.7939 0.7967 0.7995 0.8023 0.8051 0.8078 0.8106 0.8133
0.9 0.8159 0.8186 0.8212 0.8238 0.8264 0.8289 0.8315 0.8340 0.8365 0.8389
1.0 0.8413 0.8438 0.8461 0.8485 0.8508 0.8531 0.8554 0.8577 0.8599 0.8621
1.1 0.8643 0.8665 0.8686 0.8708 0.8729 0.8749 0.8770 0.8790 0.8810 0.8830
1.2 0.8849 08869 0.8888 0.8907 0.8925 0.8944 0.8962 0.8980 0.8997 0.9015
Normal Distribution: Example 1
? Find the value of P of (Z less than 0).
Z 0.0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09
0.0 0.5000 0.5040 0.5080 0.5120 0.5160 0.5199 0.5239 0.5279 0.5319 0.5359
!
0.1 0.5398 0.5348 0.5478 0.5517 0.5557 0.5596 0.5636 0.5675 0.5714 0.5753
0.2 0.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0.6141
0.3 0.6179 0.6217 0.6255 0.6293 0.6331 0.6368 0.6406 0.6443 0.6480 0.6517
There is no need of the table to find the answer once you know that
0.4 0.6554 0.6591the variable
0.6628 Z takes
0.6664
a value0.6700 0.6736
of less than (or equal0.6772
to) zero. 0.6808 0.6844 0.6879
0.5 0.6915 0.6950 0.6985 0.7019 0.7054 0.7088 0.7123 0.7157 0.7190 0.7224
0.6 0.7257 0.7291

The area under the
0.7324
curve is0.7389
0.7357
1. 0.7422 0.7454 0.7486 0.7517 0.7549
0.7 0.7580 0.7611 0.7642 0.7673 0.7704

The curve is symmetrical about Z = 0.0.7734 0.7764
Hence, there 0.7794
is above 0.7823
0.5 (or 50%) 0.7852
0.8 0.7881 0.7910chance of Z = 0 and

0.7939 below 0.5
0.7967 (or 50%)
0.7995 chance of0.8051
0.8023 Z = 0. 0.8078 0.8106 0.8133
0.9 0.8159 0.8186 0.8212 0.8238 0.8264 0.8289 0.8315 0.8340 0.8365 0.8389
1.0 0.8413 0.8438 0.8461 0.8485 0.8508 0.8531 0.8554 0.8577 0.8599 0.8621
1.1 0.8643 0.8665 0.8686 0.8708 0.8729 0.8749 0.8770 0.8790 0.8810 0.8830
1.2 0.8849 08869 0.8888 0.8907 0.8925 0.8944 0.8962 0.8980 0.8997 0.9015
? Find the value of P of (Z greater than 1.12).
Z 0.0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09
0.0
0.1
0.5000
0.5398
! 0.5040
0.5348
0.5080
0.5478
The opposite 0.5517
or complement
0.5120
of0.5557
0.5160
an event A0.5596
0.5199 0.5239
occurring0.5636
0.5279
0.5675
is the event
0.5319
0.5714
A not occurring.
0.5359
0.5753
0.2 0.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0.6141
P(not A) = 1 – P(A)
0.3 0.6179 0.6217 0.6255 0.6293 0.6331 0.6368 0.6406 0.6443 0.6480 0.6517
P(Z greater than 1.12) = 1 – P(Z less than 1.12)
0.4 0.6554 0.6591 0.6628 0.6664 0.6700 0.6736 0.6772 0.6808 0.6844 0.6879
0.5 0.6915
Using the table:
0.6950 0.6985 0.7019 0.7054 0.7088 0.7123 0.7157 0.7190 0.7224
0.6 0.7257 P(Z <

0.7291 1.12)0.7324
= 0.8686 0.7357 0.7389 0.7422 0.7454 0.7486 0.7517 0.7549
0.7 0.7580 Hence,

0.7611 P(Z0.7642
> 1.12) = 1 – 0.8686 0.7704
0.7673 = 0.1314 0.7734 0.7764 0.7794 0.7823 0.7852
0.8 0.7881 0.7910 0.7939 0.7967 0.7995 0.8023 0.8051 0.8078 0.8106 0.8133
0.9 0.8159 0.8186 0.8212 0.8238 0.8264 0.8289 0.8315 0.8340 0.8365 0.8389
1.0 0.8413 0.8438 0.8461 0.8485 0.8508 0.8531 0.8554 0.8577 0.8599 0.8621
1.1 0.8643 0.8665 0.8686 0.8708 0.8729 0.8749 0.8770 0.8790 0.8810 0.8830
1.2 0.8849 08869 0.8888 0.8907 0.8925 0.8944 0.8962 0.8980 0.8997 0.9015
? Find the value of P of (Z lies between 0 and 1.12).
Z 0.0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09
0.0
0.1
0.5000
0.5398
! 0.5040
0.5348
0.5080
0.5478
0.5120
0.5517
0.5160
0.5557
0.5199
0.5596
0.5239
0.5636
0.5279
0.5675
0.5319
0.5714
0.5359
0.5753
0.2 0.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0.6141
0.3 0.6179 Z falls

0.6217 within an interval.
0.6255 0.6293 0.6331 0.6368 0.6406 0.6443 0.6480 0.6517
0.4 0.6554 Using

0.6591 the table:
0.6628 0.6664 0.6700 0.6736 0.6772 0.6808 0.6844 0.6879
0.5 0.6915 0.6950 0.6985

P(Z lies between 1.120.7019
and 0) = 𝑃0.7054
𝑍 < 1.12 0.7088
− 𝑃 𝑍 > 00.7123
= 0.8686 0.7157 0.7190
− 0.5 = 0.3686 0.7224
0.6 0.7257 0.7291 0.7324 0.7357 0.7389 0.7422 0.7454 0.7486 0.7517 0.7549
0.7 0.7580 0.7611 0.7642 0.7673 0.7704 0.7734 0.7764 0.7794 0.7823 0.7852
0.8 0.7881 0.7910 0.7939 0.7967 0.7995 0.8023 0.8051 0.8078 0.8106 0.8133
0.9 0.8159 0.8186 0.8212 0.8238 0.8264 0.8289 0.8315 0.8340 0.8365 0.8389
1.0 0.8413 0.8438 0.8461 0.8485 0.8508 0.8531 0.8554 0.8577 0.8599 0.8621
1.1 0.8643 0.8665 0.8686 0.8708 0.8729 0.8749 0.8770 0.8790 0.8810 0.8830
1.2 0.8849 08869 0.8888 0.8907 0.8925 0.8944 0.8962 0.8980 0.8997 0.9015
?
Suppose the time taken to resolve customer complaint follows a normal distribution with the
mean value of 250 hours and standard deviation value of 23 hours. What is the probability that
a problem resolution will take more than 300 hours?
!
?
Given: Y = 300; µ = 250; σ = 23
! METHOD 1:
=NORM.DIST(value of interest, average, standard deviation, cumulative distribution?)
=NORM.DIST( 300, 250,23, TRUE) = 0.985 = 98.5%
1 – 98.5% = 1.5%
?
Given: Y = 300; µ = 250; σ = 23
! METHOD 2:
(Y−µ) (300−250)
Using the Standard Z formula: Z = = = 2.17
σ 23
● The Z value of 2.17 covers an area of 0.98499 under itself.
● The probability that a problem can be resolved in less than 300 hours is 98.5%
● The chances of a problem resolution taking more than 300 hours is 1.5% (1 - 0.985)
?
!
Given: Y = 300; µ = 250; σ = 23
METHOD 3:
=NORM.S.DIST(Z score, cumulative distribution?)
=NORM.S.DIST( 2.17, TRUE) = 98.5%
1 - 98.5 = 1.5%
Chi-Square Distribution
Chi-square distribution (chi-squared or χ² distribution) with k-1 degrees of freedom is the

distribution of the sum of the squares of k independent standard normal random variables.
Used in inferential statistics
Degree of freedom is k-1,

where k is the sample size
Used in hypothesis test

Chi-Square Distribution: Formula
fO − fe 2
2
χcalculated ==
fe
Where,
χ2calculated () = chi-square index
fO = observed frequency
fe = expected frequency
T-Distribution
Used when the sample Lower at the mean and

size is less than 30 higher at the ends
Used for hypothesis testing

Used when the population
standard deviation is not known
Used when the population is Symmetrical in shape but flatter

approximately normal than the normal distribution
F-Distribution
The F-distribution is a ratio of two Chi-square distributions. A specific F-distribution is

denoted by the degrees of freedom for the numerator Chi-square and the degrees of
freedom for the denominator Chi-square.
• Calculates and observes if the

standard deviations or variance for
two processes are significantly
different
F-Distribution: Formula
2
S1
Fcalculated = 2
S2
Where,
S1 and S2 = standard deviations of the two samples
● If Fcalculated is 1, there is no difference in the variance
● The larger variance should be placed in numerator and the smaller value in the
denominator
● df1 = n1 – 1 and df2 = n2 – 1)
Fun Facts
Run data through a normality plot to

There are over 100 see if it is normally distributed first.
distribution models.
DID YOU
KNOW…?
The normal distribution seems to be Data that are influenced by many small
everywhere from temperature and unrelated random effects are
fluctuations, student test scores, and approximately normally distributed.
time taken to complete a task. It is the
average result of other factors.
Central Limit Theorem
Meaning of Theorem
A theorem is a general proposition not self-evident but proved by a chain of reasoning.
It is a truth established by means of accepted truths.
Example
Pythagoras’ Theorem
In a right-angled triangle, the square of the

long side is equal to the sum of the squares of
the other two sides.
Central Limit Theorem (CLT)
CLT takes any data, with enough samples, and applies normal distribution principles.
Central Limit Theorem (CLT)
The Central Limit Theorem (CLT) states that the means of random samples drawn
from any distribution with mean µ and variance σ2 will have an approximately
normal distribution with a mean equal to µ and a variance equal to σ2 / n, as n
increases greater than 30.
Importance of CLT
!
CLT implies that the distribution of the sample
means will approach a normal distribution
regardless of what the population distribution
looks like.
! CLT makes probability statements about the

possible range of values the sample mean may
take.
! The normal distribution has a useful property

called the Empirical Rule.
The Empirical Rule
As a Six Sigma practitioner remember the CLT forms the basis of inferential statistics.
How CLT Works: Illustration
The probability of the dice landing on any one side is equal to the probability of it landing
on any of the other five sides.
How CLT Works: Experiment 1
500 times
Source: https://www.minitab.com/uploadedFiles/Content/Academic/CentralLimitTheorem.pdf
2 rolls
500 trials
Average of 30 rolls per trial

The central limit theorem states that for a large enough n, X-bar can be approximated by
a normal distribution with mean µ and standard deviation σ/√n.
How CLT Works: Conclusion
The population mean for a six-sided die is:

(1+2+3+4+5+6)/6 = 3.5
The population standard deviation = 1.708
Average of the 30 averages = 3.49
Standard deviation 1.708/√30 = 0.31 Standard deviation = 0.30

Good to Know
The normal model for the sample mean is good when the sample has at least 30 independent observations.
As the sample size increases, the mean has more of a normal distribution.
Caution
Observations that are independent may not occur consecutively.
If more outliers are present, it is likely that more than 30 observations will be needed to use
the normal distribution.
Key Takeaways
Probability, statistics, and inferential statistics describe the

parameters for the classes of distributions.
A theorem is a general proposition not self-evident but proved

by a chain of reasoning.
CLT takes any data, with enough samples, and applies normal
distribution principles.
Knowledge Check
Knowledge
Check
What is the similarity between the Binomial and Poisson Distributions?
1
A. Focus on defective items
B. A part of the discrete distribution family
C. The calculation of the average or expected value
D. The number of trials tend towards infinity

Knowledge
Check
What is the similarity between the Binomial and Poisson Distributions?
1
A. Focus on defective items
B. A part of the discrete distribution family
C. The calculation of the average or expected value
D. The number of trials tend towards infinity
A Binomial is a discrete distribution that focuses on defective items, as a small number of trials and the calculation
for the expected value is n*p; whereas the Poisson is a discrete distribution that focuses on defects, the number of
trials tends towards infinity, and the expected value is λ.
Knowledge
Check
What is the probability of P(Z<2.4)?
2
A. 99.18%
B. 0.81%
C. 95%
D. 5%
Knowledge
Check
What is the probability of P(Z<2.4)?
2
A. 99.18%
B. 0.81%
C. 95%
D. 5%
Looking up the Z value of 2.4 in a left-tailed Z-table gives the probability of 99.18%.
Knowledge
Check
Which distribution is based on the Bernoulli process to predict sample behavior?
3
A. Poisson
B. Binomial
C. F-distribution
D. Normal
Knowledge
Check
Which distribution is based on the Bernoulli process to predict sample behavior?
3
A. Poisson
B. Binomial
C. F-distribution
D. Normal
The binomial distribution is based on the scenario where the output has only two options and probability remains
consistent over time. This scenario is called the Bernoulli process.
Knowledge
Check If the output value is 45, with process average of 40 and standard deviation of 2, what
4 is the Z score value?
A. 5
B. 2
C. 2.5
D. 3
Knowledge
Check If the output value is 45, with process average of 40 and standard deviation of 2, what
4 is the Z score value?
A. 5
B. 2
C. 2.5
D. 3
(Y−µ) (45−40)
Z= = = 2.5
σ 2
Knowledge
Check Given a normal distribution, what is the probability of having a Z score value smaller
5 than 2.5?
A. 0.6%
B. 99.4%
C. 90.2%
D. 2.5%
Knowledge
Check Given a normal distribution, what is the probability of having a Z score value smaller
5 than 2.5?
A. 0.6%
B. 99.4%
C. 90.2%
D. 2.5%
: Using a left tailed Z-table or the Excel function “= NORM.S.DIST() will provide a result of 99.4%.
Knowledge
Check The central limit theorem states that the means of random samples drawn from any
distribution with mean µ and variance σ2 will have an approximately ______ distribution
6 with a mean equal to µ and a variance equal to σ2 / n, as n increases greater than ___.
A. Normal, 10
B. T, 30
C. Normal, 25
D. Normal, 30
Knowledge
Check The central limit theorem states that the means of random samples drawn from any
distribution with mean µ and variance σ2 will have an approximately ______ distribution
6 with a mean equal to µ and a variance equal to σ2 / n, as n increases greater than ___.
A. Normal, 10
B. T, 30
C. Normal, 25
D. Normal, 30
The central limit theorem states that the means of random samples drawn from any distribution with mean µ and
variance σ2 will have an approximately normal distribution with a mean equal to µ and a variance equal to σ2 / n, as n
increases greater than 30.
Measurement System Analysis
Learning Objectives
Interpret measurement system analysis
List the measurement system characteristics and system concepts
Outline the measurement system properties
Describe G R&R study

Problems at Java House Coffee
Java House Coffee customers had been complaining about the coffee
temperature. However, investigation showed that the temperature was
within the customers’ desired range.
 The investigation team discovered that the device used to take and read
coffee temperature was malfunctioning. A new device showed coffee
temperature was colder than what they had previously thought.
Calculate and Interpret Measurement System Capability using GR&R
Analysis Intended Results
Measurement System Analysis is a technique that identifies measurement error or variation and its
sources to reduce variation.
Obtain information
Establish criteria
Compare measurement methods
Form basis for evaluating a measurement method

Observed value = True value ± Measurement error
 With Parallax Error
 No Parallax Error
 With Parallax Error

True variability = Process variability + Measurement variability

Measurement System Properties
System
Characteristics
Accuracy Precision
μtotal = μprocess ± μmeasurement σ2total = σ2process + σ2measurement
To have stable measurement system, it is important to focus on the accuracy, first by addressing
measurement issues and then getting accurate results.
Accuracy Precision
Degree of conformity of Degree to which repeated

measured or calculated measurements, under
value to its actual or true unchanged conditions,
value show the same results
Accurate Precise Not Accurate Precise
Accurate Not Precise Not Accurate Not Precise

Understand Measurement System Characteristics
Measurement System Characteristics
Measurement System Characteristics
Resolution Accuracy Precision
Bias Repeatability
Linearity Reproducibility
Stability
Measurement Characteristics: Resolution
Resolution is the smallest reading the measurement scale can detect.
Resolution is the first characteristic that needs to be tested in an MSA.

Measurement Characteristics: Bias
Bias is the measure of the distance between the measured value and the true or actual value.
Possible causes for bias are need for equipment calibration, improper calibration, or the
wrong gage used for the job.
Measurement Characteristics: Linearity
Linearity is a measure of consistency of bias over a range of measurement from the

smallest number to a higher number and vice-versa.
Range of the gage
Possible causes for linearity issues could be poor maintenance, worn instrument or
equipment, or application measurement method.
Measurement Characteristics: Stability
Stability refers to the ability of a measurement system to show the same values,
every time the same item is measured.
Possible causes for instability issues are normal aging and worn instrument.
Measurement Characteristics: Repeatability
Repeatability is the variation in measurements obtained with one measurement instrument, when it is used
several times by one appraiser while measuring the same characteristic on the same part, repeatedly.
Possible causes for repeatability variation could be appraiser technique, position

on part where measurement is taken, and lack of training.
Measurement Characteristics: Reproducibility
Reproducibility is variation in the average of measurements made by different operators

using the same gage when measuring identical characteristics of the same part.
Possible causes for reproducibility variation could be difference in

operator training, technique, or experience.
Measurement System Concepts
Measurement Correlation
Measurement Correlation is the strength of relationship of multiple measurement systems for

use by quantifying accuracy relative to a Gold Standard or Gold Tester.
A Gold Standard is the measurement system used to determine and assign specifications values.
Precision / Tolerance (P/T)
Precision/Tolerance (P/T) addresses what percent of the tolerance is

taken up by measurement error.
5.15 standard deviation is chosen as an

industry standard and accounts for 99%
of MS variation.
P/T is a ratio that is Tolerance is the difference

usually expressed as a between the upper and lower
percentage. customer specification limit.
A measurement system is
acceptable if P/T is less than 30%.
GAGE R&R and %GRR
Gage RR or Gage Repeatability and Reproducibility is a

measure of measurement system variation.
Percent Gage R and R is a measurement system

capability index.
Sources of Variation
Long-Term Process
Variation
Short-Term Process
Actual Process Variation
Variation
Observed Process
Variation Variation within a sample
Measurement
Variation
Variation due to operators Reproducibility
Variation due to gage Repeatability

GRR Study: Components
Difference leads to
Reproducibility
1 2 1 2 1 2
Trial 3 4 3 4 3 4
Reading #1
5 6 5 6 5 6
Difference Six Parts /

leads to Conditions
Reproducibility
1 2 1 2 1 2
Trial 3 4 3 4 3 4
Reading #2
5 6 5 6 5 6
Operator A Operator B Operator C

GRR Study: Guidelines
GRR studies should be performed over the range of expected

observations
Actual equipment should be used
Written procedures or approved practices should be followed
Measurement variability should be presented as is
Measurement variability should be separated into causal

components, prioritized, and targeted for action
GRR Study: Variable and Attribute Gage R&R
Variable Gage R&R Attribute Gage R&R
Analyzes measurement systems with the help Analyzes measurement systems using
of variable or continuous data attribute or discrete data
Measurement system typically Measurement system typically utilizes

involves a physical gage. manual or automated
counting/monitoring.
The result of this is quantification of
the percentage of variation The result of this is quantification of
contributed by the measurement the proportion of defective
system. measurements in DPMO, %
Agreement, or Sigma Level.
Variable Gage R&R: Data Collection
The number of operators are usually 3.
The number of units to measure is usually 10.
General sampling techniques are used to represent the population.
The number of trials for each operator is 2 to 3.
The gage is checked for calibration and resolution.
The units are measured by the first operator in random order, and the same order is
followed by the other operators.
Each trial is repeated.

Variable Gage R&R: Four Criteria
0% 10% 20% 30% 40%  100%

% Study Variation
% Tolerance
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%  100%
% Contribution
1 2 3 4 5 6 7 8 9 10 
% Distinct Categories
It is important to assess these values to determine whether each value meets the requirement
to ensure that the measurement system can reliably measure the process.
Variable Gage R&R
Average and Range Method ANOVA Method
• ANOVA is considered the best method for

• For years, the most used method for Gage
analyzing GRR studies due to the following
R&R was the Average and Range Method
reasons:
o It separates equipment and operator
• Many people refer to the AIAG’s
variation and provides insight on the
Measurement Systems Analysis Manual
combined effect of the two.
when doing Gage R&R studies
o It uses variance instead of standard
deviation as a measure of variation
o AIAG stands for Automotive Industry
and therefore gives a better estimate
Action Group
of the measurement system
variation.
• Calculates the % of the total variation, using
standard deviation, that is due to the Gage
• Allows you to estimate the variance of the
R&R
components
Variable Gage R&R: Continuous Gage R&R Example
ndc = 2 ndc = 3
Variable Gage R&R: Interpretation
Check the value of %GRR.

If %GRR < 30, Gage Variation is acceptable, and thus the gage is acceptable. If %GRR > 30, the gage is not
acceptable.
Check EV first.
If EV = 0, the MS is reliable and the variation in the gage is contributed by different operators. If AV = 0, the MS
is precise.
If EV = 0, resolve AV by providing operators with training.

Attribute Data: Data Collection in GR&R
Select between 20 to 30 samples that represent full range of variation
50:50 mix of good/bad parts is recommended
Have master appraiser categorize each of the test sample as good or bad
Take two or three inspectors and have them assess each test sample
Randomize samples and repeat assessment

Attribute Data: Example
Test Samples Master/Expert Operator1_1 Operator1_2 Operator2_1 Operator2_2 Operator3_1 Operator3_2

1 okay okay okay okay okay okay okay
2 defective defective defective defective defective defective defective
3 okay okay defective okay okay okay
5 okay okay defective okay okay okay okay
25 okay defective defective defective defective defective defective
29 okay defective defective okay okay okay defective
30 okay defective okay okay okay okay okay
Op1 with Between All Ops versus

Operator1_1 Operator1_2 Within Op1 Test Samples Master/Expert Operator1_1
Standard Ops Match Standard
okay okay 1 1 1 okay okay 1 1
defective defective 1 1 2 defective defective 1 1
okay defective 0 0 3 okay okay 0 0
okay defective 0 0 5 okay okay 0 0
defective defective 1 0 25 okay defective 1 0
defective defective 1 0 29 okay defective 0 0
defective okay 0 0 30 okay defective 0 0
#Matched 27 27 25 24
#Inspected 30 30 30 30
%Agree 90.00% 80.00% 83.33% 80.00%
Interpretation of MSA
Operators are not adequately

trained in using the gage
Calibrations on the gage dial are

not clear
Reproducibility Error > Repeatability Error
MSA Result Gage needs maintenance
Repeatability Error > Reproducibility Error

Gage needs redesign to be more
rigid
Gaging location needs

improvement
Ambiguity is present in SOPs

Key Takeaways
A Measurement System Analysis (MSA) is needed prior to any

data collection activities.
There are two major system characteristics: accuracy and

precision.
An MSA will help determine if the measurement system

characteristics exist.
The measurement system concepts are Measurement

correlation, gage RR and % GRR, and Precision/Tolerance (P/T).
Gage R&R studies can be conducted for variable and attribute

data.
Average and Range Method and ANOVA Method are the two
methods for analyzing GRR Studies.
Knowledge Check
Knowledge
Check A team studies the results from measurement system analysis of plate thickness and
determines that the average values observed is 3.5 cm, with values close together, and
1 the true value is 4.0 cm. How can the measurement system be described?
A. Low Accuracy, High Precision
B. Low Accuracy, Low Precision
C. High Accuracy, High Precision
D. High Accuracy, Low Precision

Knowledge
Check A team studies the results from measurement system analysis of plate thickness and
determines that the average values observed is 3.5 cm, with values close together, and
1 the true value is 4.0 cm. How can the measurement system be described?
A. Low Accuracy, High Precision
B. Low Accuracy, Low Precision
C. High Accuracy, High Precision
D. High Accuracy, Low Precision
The scenario described here is of low accuracy (average observed value does not equal target value) and high
precision (the values are close together).
Knowledge
Check The change or lack of change of a measurement system readings of the same part over
2 time is an example of ________.
A. Linearity
B. Stability
C. Repeatability
D. Reproducibility
Knowledge
Check The change or lack of change of a measurement system readings of the same part over
2 time is an example of ________.
A. Linearity
B. Stability
C. Repeatability
D. Reproducibility
The change or lack of change of a measurement system readings of the same part over time is an example of stability.
Knowledge
Check A team has measured the thickness of a part over and over and has compared the
average observed value to the actual value. The difference between the average
3 observed value and the actual value is called:
A. Linearity
B. Bias
C. Stability
D. Gage R&R
Knowledge
Check A team has measured the thickness of a part over and over and has compared the
average observed value to the actual value. The difference between the average
3 observed value and the actual value is called:
A. Linearity
B. Bias
C. Stability
D. Gage R&R
Bias is the measurement characteristic described as the difference between the average observed value and a
reference value.
Knowledge
Check What is the major difference between the ANOVA and Average and Range method for
4 Gage R&R study?
A. The results are significantly different
B. ANOVA is based on standard deviation and the Average and Range method is based on
variance
C. There is no difference
D. ANOVA is based on variance and the Average and Range method is based on standard
deviation
Knowledge
Check What is the major difference between the ANOVA and Average and Range method for
4 Gage R&R study?
A. The results are significantly different
B. ANOVA is based on standard deviation and the Average and Range method is based on
variance
C. There is no difference
D. ANOVA is based on variance and the Average and Range method is based on standard
deviation
ANOVA is based on variance and the Average and Range method is based on standard deviation which causes a slight
difference in calculations.
Knowledge
Check
To conduct a continuous Gage R&R study, how many sample parts are needed?
5
A. 10
B. 20
C. 25
D. 3
Knowledge
Check
To conduct a continuous Gage R&R study, how many sample parts are needed?
5
A. 10
B. 20
C. 25
D. 3
For a continuous Gage R&R study, ideally 10 parts are recommended that represent the range of output possibilities
from the process.
Process and Performance Capability
Learning Objectives
Identify a stable or unstable process
Verify process stability and normality in a process
Interpret the results of a graph on natural process limits and

specification limits
Calculate the Cpk and Cp and Cpm and Ppm of a process
Interpret capability indices

Introduction
Sales Chart
How can we
summarize the current
performance of our
process to determine We need capability
if the product output is analysis to determine this.
meeting customers’ Then, we can decide what
needs? steps to take next.
Process and Performance Capability
Activities in the Measure Phase
Test for stability

• MSA
• Collection of data
• Statistical calculations • Changes should not be
• Check for accuracy and made to an unstable
validity process
Determine if the process is

stable or not
Activities in the Measure Phase
?
Why does a process become
!
unstable?
A process becomes unstable due to special
cause of variation.
Multiple special causes of variation lead to

instability.
A single special cause leads to an out-of-

control condition.
Process Stability Studies
Variation can be due to two types of causes:
Common Cause Variation (CCV)
Special Cause Variation

(SCV)
Process Stability Studies
Special Cause Variation

Common Cause Variation (CCV)
(SCV)
• Include factors external to and not

always acting on the process
• Include many sources of variation
• Sporadic in nature
within a process or inherent to it
• Contribute to instability to a process
• Have a stable and repeatable
output, which makes the output
distribution over time
unpredictable
• Contribute to a state of statistical
• May result in defects and have to be
control where the output is
eliminated
predictable within a range
• If identified, they point to the need
for root cause analysis
CCV and SCV
Example of CCV
Difference in temperature inside

the oven due to oven design
400⁰F
CCV and SCV
Example of SCV
Difference in temperature inside the oven

due to external factors
Control Charts
If all the data points are within the UCL and LCL (red lines), the process could be stable.
Run Charts
If p-values for any of the last 4 values provided in the chart are less than 0.05, the process has
special causes of variation, and the chances of the process being unstable are high.
Verifying Process Stability and Normality
SCV present Output unstable Process not under control
CCV present Output stable Process under control

Normality
Normality is the condition of a process that follows a normal distribution.
If the P value is greater than 0.05, the data set could be described as normally distributed.
Process Capability Analysis
Customer needs
Process
and expectations
Process capability is how well the process is meeting customer needs and
expectations.
It is a metric that reflects only the common cause of variation.

Interpretation of Data
Natural Process Limits vs. Specification Limits
Natural Process Limits Specification Limits
Indicators of process variation Targets set for the process
Voice of the process Voice of the customer
Based on past performance Based on customer requirements
Real-time values Intended result
Derived from process data Defined by the customer
Consists of Upper Control Limit (UCL) and Consist of Upper Specification Limit (USL)
Lower Control Limit (LCL) and Lower Specification Limit (LSL)
Natural Process Limits and Specification Limits
LCL UCL
If the control limits lie within the specification limits, the process could be considered capable. Conversely, if
the specification limits lie within the control limits, the process will not meet customer requirements.
Actions after Comparing Natural Limits and Spec Limits
Condition Action
Process limits fall within

No action required
Adjust the process

Compare natural Process spread and
centering to bring the
process limits with specification spread are
batch within specification
specification limits approximately the same
limits
Reduce variability by
Process limits fall outside
partitioning and targeting
the largest offender
Process Capability Studies
Process capability is the actual variation in the process specification.
Plot and analyze the

Plan for data collection Collect data
results
The same data used for stability and normality analysis can also be used for capability.
Process Capability Index
Measures performance
Is the inherent variability of a

characteristic of a process or a
product
Is the indicator of the capability

of a process
Upper specification limit − Lower specification limit

Process capability (CP) =
6σ
OR
USL − LSL
Process capability CP =
6σ
The formula assumes the process is perfectly centered between the upper and lower specification limits.
It does not reflect how the process is actually performing in relation to the specification limits.
Process Capability (Cpk) was developed to objectively measure the degree to which a
process meets or does not meet customer requirements.
𝐶𝑝𝑘 = 𝑀𝐼𝑁(𝐶𝑝𝑘𝑙 , 𝐶𝑝𝑘𝑢 )
𝑋ത − LSL
𝐶𝑝𝑙 =
3σ
USL − 𝑋ത
𝐶𝑝𝑢 =
3σ
Comparison of Process Capability Indices
Cpk < Cp
Cpk < Cp Cpk = Cp
Cpk is negative
Mean is not centered between Mean is centered between
Mean exceeds specification limits
specification limits specification limits
Cpk cannot be larger than Cp because Cp represents the maximum capability with the current process
variation.
Interpretation of Process Capability Indices
Sigma Level Process Capability
Not capable 2 0.67
Marginally capable 3 1.00
4 1.33
Capable 5 1.67
6 2.00
Interpretation of Process Capability Indices
Process
Sigma Level
Capability
2 0.67
3 1.00
4 1.33
5 1.66
6 2.00
Process Capability: Example
?
• Mean diameter = 3.02 centimeters
• Standard deviation = 0.02 centimeters
• Lower engineering specification limits = 2.95 inches
• Upper engineering specification limits = 3.05 inches
• Process is stable
• Diameters are normally distributed
Determine the Cp and Cpk

Process Capability: Example
!
𝑈𝑆𝐿 − 𝐿𝑆𝐿 3.05 − 2.95 0.10
𝐶𝑃 = = = = 0.833
6𝜎 6(0.02) 0.12
USL − 𝑋ത 3.05 − 3.02 0.03

𝑋ത − LSL 3.02 − 2.95 0.7 𝐶𝑝𝑘𝑢 = = = = 0.5
𝐶𝑝𝑘𝑙 = = = = 1.17 3σ 3(0.02) 0.06
3σ 3(0.02) 0.06
𝐶𝑝𝑘 = 𝑀𝐼𝑁(𝐶𝑝𝑘𝑙 , 𝐶𝑝𝑘𝑢 ) = 𝟎. 𝟓

Interpretation of the Example
The process is not The process is not be

Cpk = 0.5 Cp =0.833
capable in regards to capable even if mean
true performance was centered
The process is not centered

between the lower and upper Cp (0.833) > Cpk (0.5)
The team must focus on reducing variation and work with

Remedial steps
operations to center the average output.
Interpretation of the Example
The process is not The process is not be

Cpk = 0.5 Cp =0.833
capable in regards to capable even if mean
true performance was centered
The process is not centered

between the lower and upper Cp (0.833) > Cpk (0.5)
If the Cp index shows process is capable but Cpk indicates a lack a capability, then it would mean that the
process variation is small enough to allow for a capable process.
Identifying Characteristics
Criteria for a characteristic for a process capability study:
✓ Should indicate a key factor in the quality of the product or process

✓ Should influence the value of the characteristic through process adjustments
✓ Operating conditions that affect the characteristic should be defined and controlled
✓ Determined by customer requirements or industry standards
For a Six Sigma project, the characteristic is typically the “Y” or output variable defined in the
charter.
Identifying Specifications or Tolerances
Process specification or tolerances are defined by:
OR
Industry standards based on Organization in consultation
the customer requirements with the customer
Process Performance Indices
Process Performance Index verifies if the sample generated from the process is
capable of meeting the customer requirements.
It is only used when process control cannot be evaluated.

Process Performance Indices
Process Performance (Pp)
Process Performance Index

(Ppk)

(Ppm/Cpm)
Process Performance Indices vs. Process Capability
Process Performance Indices Process Capability
Applies to a specific batch of output Applies to all batches of output
Based on sample standard deviation Based on population standard deviation
Long-term capability Short-term capability

Process Performance Indices (Pp)
USL −LSL
Pp =
6s
Where,
USL = upper specification limit
LSL = lower specification limit
s = natural process variation
Process Performance Indices (Pp)
Ppk = Min(Ppu, PpL)

Where,
USL−x
Ppu (upper process capability index) =
3s
x−LSL
PpL (lower process capability index) =
3s
Where,
x = process average (തx)
s = sample standard deviation
Cpm and Ppm
𝑈𝑆𝐿 −𝐿𝑆𝐿 𝑈𝑆𝐿 −𝐿𝑆𝐿

Cpm = 2 2
Ppm =
6 ∗ 𝜎 + 𝜇 −𝑇 6 ∗ 𝑠2+ 𝑋ത −𝑇 2
Where,
USL = upper specification limit
LSL = lower specification limit
μ = process average
σ = process standard deviation
T = target value (typically, the center of tolerance)
ത sample average
𝑋=
Cpm and Ppm: Interpretation
Improved
Improved
position
Cpm or Ppm
Improved Improved
variation Cpm or Ppm
• As the process variation reduces and/or as the process average reaches the target value, the Cpm or
Ppm index improves or becomes larger.
• The ideal value is 1.33 or greater.
Process Mean Shift
Process shift ● Reflects how well a process is controlled

(ZST – ZLT) ● Usually a factor of 1.5
● Capability or the potential performance of the process in

Short-term capability
control at any point of time
(ZST)
● Based on the sample collected in the short term
Long-term performance
● Actual performance of the process over time
(ZLT)
Process Mean Shift: Example
Sample at Time 3
Sample at Time 2
Sample at Time 1
Observations
• A typical process will shift by approximately 1.5 standard deviations.

• Long-term variation is more than the short-term variation.
• The difference between the short and long-term shifts is the Sigma Shift.
• A shift may be due to different people, raw material, wear and tear, time, and so on.
Process Mean Shift: Implications
Sigma Multiple No Mean Shift Mean Shift ±1σ Mean Shift ±1.5σ
±3σ 2700 DPMO 22800 DPMO 66810 DPMO
99.73% Good 97.72% Good 93.32% Good
±4σ 63 DPM) 1350 DPMO 6210 DPMO
99.9937% Good 99.865% Good 99.379% Good
±5σ 0.57 DPMO 32 DPMO 223 DPMO
99.999943% Good 99.9968% Good 99.9767% Good
±6σ 0.002 DPMO 0.29 DPMO 3.4 DPMO
99.9999998% Good 99.999971% Good 99.99966% Good
Summary of the defect levels at different Sigma multiple values and mean shifts
Observation
The effects of a mean shift become more negligible as the process capability increases. A Six Sigma
process level of defects is not affected much by long-term variation.
Conversion From Long-term to Short-term Capability
TO KNOW
Short-term Capability Long-term Capability
Zst Short-term data P Subtract 1.5
With data collected

Zlt Long-term data Add 1.5 P
Process Variations
Short-term Variation Long-term Variation
Attributed to common cause variation Attributed to both common and special

cause variations
Variance inherent in the process Shows variation within and between sub-
groups
Shows variation within subgroups Increases due to special causes
Small number of samples collected at short Special causes have to be identified and
intervals corrected for improvement
Captures common cause variation
Common causes are difficult to identify and

correct and may require process redesign
Long-term vs. Short-term Process Variation
Complaint Resolution Time (Hours)

Week 1 Week 2 Week 3
48 50 49
49 48 48
48 36 39
53 50 49
58 50 34
50 62 33
46 45 57
50 47 48
49 51 47
47 44 39
Subgroup size = nweek = 10

1 Average of each week = Total complaints resolved per week/subgroup size 8

St. Dev. Short Term = SST =
2 Grand average = Sum of per week average/3 𝑇𝑜𝑡𝑎𝑙 𝑣𝑎𝑟𝑖𝑎𝑡𝑖𝑜𝑛 𝑤𝑖𝑡ℎ𝑖𝑛 𝑠𝑢𝑏𝑔𝑟𝑜𝑢𝑝𝑠
(𝑇𝑜𝑡𝑎𝑙 𝑠𝑎𝑚𝑝𝑙𝑒 𝑠𝑖𝑧𝑒 − 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓𝑠𝑢𝑏𝑔𝑟𝑜𝑢𝑝𝑠)
Variation within subgroups for a week = Σ(Week average – x)2, where x is

3 each reading in the week
9 St. Dev. Long Term = SLT =

Variation between subgroups for a week = (Grand average – week average)2
4 ∗ nweek
𝑂𝑣𝑒𝑟𝑎𝑙𝑙 𝑉𝑎𝑟𝑖𝑎𝑡𝑖𝑜𝑛
(𝑇𝑜𝑡𝑎𝑙 𝑠𝑎𝑚𝑝𝑙𝑒 𝑠𝑖𝑧𝑒 −1)
Total variation between subgroups = Σ(variation between subgroups for

5 each week)
Total variation between subgroups = Σ(variation between subgroups for

6 each week)
Overall variation = Total variation within subgroups + Total variation

7 between subgroups
Measure Value
Grand average 47.5
Total variation within subgroups 1023.8
Total variation between subgroups 161.67
Overall variation 1185.5
Standard Deviation short term 6.2
Standard Deviation long term 6.4
Process Performance
Guideline summary of process performance
Process Less CCV, No SCV Less CCV, High CCV, High CCV,
SCV present No SCV SCV present
Variations Only CCV CCV and SCV CCV CCV and SCV
Variability Less High Moderate to High Very High
Capability High Less Very Less Poor
Possibility of defects Less High Very High Defective Process
In Control, Out of Control, Incapable, Incapable,

Process Condition
Capable Incapable In Control Out of Control
Attribute Data and Capability
DPU DPMO
DPMO = Defects per opportunity ∗

Defects
DPU =
Total no.of units 1,000,000
Process Performance: Example
The Quality Control department checks the quality of finished goods by sampling a
batch of 10 items from the produced lot every hour.
It collects the following data over 24 hours.
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2
Hour 1 2 3 4 5 6 7 8 9
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4
Defectives 2 1 0 0 2 3 1 4 5 1 2 0 0 1 2 1 1 1 4 0 0 0 1 2
Process Performance: Example
𝑝ҧ or DPU is used to calculate process capability.
Total no. of defectives = 34

Subgroup size = 10
Total no. of units = 10 ∗ 24 = 240
34
DPU = = 0.0142
240
DPMO = DPU ∗ 1,000,000 = 141666.66
Observation
The process is currently working at 2.6 σ, which is 86.4% yield.

Process Capability for Attribute Data
Defectives Defects
σ= 𝑝ഥ (1 − 𝑝)ҧ Τ𝑛 σ=
ഥ
𝑢
; 𝑐ҧ
𝑎
• 𝑝ഥ is used to check process capability • 𝑐ҧ is used when the sample size is

for constant and variable sample constant.
sizes. ഥ is used when the sample size is
• 𝑢
variable.
Key Takeaways
Variations can be due to Common Cause Variation (CCV) and

Special Cause Variation (SCV).
Process normality is verified using a normal probability plot.
Process capability refers to how well the process meets

customer needs and expectations.
Process shift reflects how well a process is controlled. It is the

difference between short-term and long-term performance.
For attribute data, process capability is determined by the

mean rate of non-conformity.
Knowledge Check
Knowledge
Check
In the Measure Phase, which of these options should be determined first?
1
A. Process Capability
B. Process Stability
C. Normality
D. Sigma Shift
Knowledge
Check
In the Measure Phase, which of these options should be determined first?
1
A. Process Capability
B. Process Stability
C. Normality
D. Sigma Shift
Ensuring that the process only has common cause variation or is stable is the first activity in the Measure Phase.
Knowledge
Check
If Cpk = 1.1 and Cp = 1.33, what can we conclude about the process ?
2
A. Process is neither capable nor centered.
B. Process is capable but is not centered.
C. Process is capable and centered.
D. Process is not capable but is centered.

Knowledge
Check
If Cpk = 1.1 and Cp = 1.33, what can we conclude about the process ?
2
A. Process is neither capable nor centered.
B. Process is capable but is not centered.
C. Process is capable and centered.
D. Process is not capable but is centered.
Since Cp and Cpk are greater than 1, we can say the process is currently marginally capable and because Cpk is not
equal to Cp the process is not centered.
Knowledge
Check
If Cpk = 0.7 and Cp = 1.33, what actions should be taken?
3
A. Process needs to be centered.
B. Variation needs to be reduced.
C. Stability needs to be rechecked.
D. Process performance index needs to be calculated.

Knowledge
Check
If Cpk = 0.7 and Cp = 1.33, what actions should be taken?
3
A. Process needs to be centered.
B. Variation needs to be reduced.
C. Stability needs to be rechecked.
D. Process performance index needs to be calculated.
The process needs to be centered since a Cp value of 1.33 indicates good capability and with Cpk value less than 1
indicates centering is the issue.
Knowledge
Check
If short-term variation is calculated at 3.5σ, what is the expected long-term variation?
4
A. 3.5σ
B. 2.0σ
C. 5.0σ
D. 1.0σ
Knowledge
Check
If short-term variation is calculated at 3.5σ, what is the expected long-term variation?
4
A. 3.5σ
B. 2.0σ
C. 5.0σ
D. 1.0σ
The question requires the use of the 1.5 Sigma shift. Moving short-term to long- term Sigma will mean subtracting 1.5
from 3.5, which is 2.0.
Lean Six Sigma Activities and Tools: Measure
Activities
❑ Review Project Charter ❑ Process Map Flow Identify Root Causes ❑ Develop SOP’s, Training Plan
❑ ❑ Develop Potential Solutions
❑ Validate High-Level Value ❑ Identify Key Input, Reduce List of Potential and Process Controls
❑ ❑ Evaluate, Select, and
Stream Map and Scope Process and Output Root Causes ❑ Implement Solution and
Optimize Best Solutions
❑ Validate Voice of the Metrics Confirm Root Cause to Ongoing Process
❑ ❑ Develop ‘To-Be’ Process
Customer and Voice of the ❑ Develop Data Collection Output Relationship Measurements
Maps
Business Plan Estimate Impact of Root ❑ Confirm Attainment of
❑ ❑ Develop and Implement
❑ Validate Problem Statement ❑ Validate Measurement Causes on Key Outputs Project Goals
Pilot Solution
and Goals System Prioritize Root Causes ❑ Identify Project Replication
❑ ❑ Implement 5s Program
❑ Validate Financial Benefits ❑ Collect Baseline Data Statistical Analysis Opportunities
❑ ❑ Develop Full Scale
❑ Create Communication Plan ❑ Determine Process Complete Analyze Tollgate ❑ Training
❑ Implementation Plan
❑ Select and Launch Team Capability ❑ Complete Control Tollgate
❑ Cost/Benefit Analysis
❑ Develop Project Schedule ❑ Complete Measure ❑ Transition Project to Process
❑ Complete Improve Tollgate
❑ Complete Define Tollgate Tollgate Owner
❑ Voice of the Customer ❑ Data Collection Plan ❑ FMEA Improvement ❑ Standard Operating Procedures
❑ SIPOC Map ❑ Statistical Sampling ❑ Hypothesis Tests ❑ Design of Experiments (SOP’s)
❑ Project Valuation (ROI) ❑ Measurement System ❑ Simple & Multiple (DOE) ❑ Process Control Plans
❑ Stakeholder Analysis Analysis (MSA) Regression ❑ Solution Selection ❑ Visual Process Control Tools
❑ Communication Plan ❑ Gage R&R ❑ ANOVA Matrix ❑ Statistical Process Controls
❑ Effective Meeting Tools ❑ Control Charts ❑ Components of Variation ❑ Piloting (SPC)
❑ Timelines, Milestones, ❑ Histograms ❑ Pugh Matrix ❑ Visual Workplace
and Gantt Charting ❑ Normality Test ❑ Pull System ❑ Total Productive Maintenance
❑ Pareto Analysis ❑ Process Capability ❑ Metrics
Analysis ❑ Team Feedback Session
Tools
Measure Tollgate Questions
✓ Has a more detailed Process Map been completed to better understand the process and problem, and where in the
process the root causes might reside?
✓ Has the team conducted a process analysis, identifying areas where time and resources are devoted to tasks not critical
to the customer?
✓ Has the team identified the specific input (x), process (x), and output (y) measures needing to be collected for both
effectiveness and efficiency categories (i.e. Quality, Speed, and Cost measures)?
✓ Has an appropriate sample size and sampling frequency been established to ensure valid representation of the process
we’re measuring?
✓ Has the measurement system been checked for repeatability and reproducibility, potentially including training of data
collectors?
✓ Has the team developed and tested data collection forms or check sheets which are easy to use and provide consistent,
complete data?
✓ Has baseline performance and process capability been established? How large is the gap between current performance
and the customer (or project) requirements?
✓ Have key learning(s) to-date required any modification of the Project Charter? If so, have these changes been approved
by the Project Sponsor and the Key Stakeholders?
✓ Have any new risks to project success been identified, added to the Risk Mitigation Plan, and a mitigation strategy put in
place?
Note: With answers to these questions you are now ready to move to the Measure Phase.
Measure Phase: Project (Contd.)
Case Study
Note:
You will be using only some of the DMAIC tools and techniques in the case study to practice solving
a single problem.
DMAIC Phase 2: Measure
Project Update: Collecting Data

Your team has completed the Define phase. A SIPOC map was created to show high level process
flow. Critical Quality Characteristics (CTQs) were identified, and an operational definition of billing
defects was created."
To help them understand how the current forklift billing process works, your team obtained a copy
of every invoice from all the vendors for a month from E/P. They also got a copy of the fleet report
from MO for the same month. The team must now investigate the current process.
Project Update: Baseline Performance

Your team has collected 5,026 invoices for the selected month. Each invoice represents one month’s
lease agreement and service contract for an individual forklift. They compared the invoices to the
fleet report to identify discrepancies and decided to look at all invoices for the month instead of a
sample.
After collecting the data and compiling the results, your team identified 2,412 defects.
Project Update: Defect Frequency

Your team matched all forklift invoices to the fleet report to determine the defects and their
frequency. They assigned a letter code for each defect as a quick identifier. The letter codes are
presented in the table below along with the defect frequency.
Code Defect Type Frequency

A Invoice is for incorrect amount 68
B Invoice sent to wrong location 75
C Invoice serial number is incorrect 54
D Invoice is late 134
E Fleet report amount differs from invoice 202
F Fleet report has incorrect location 296
G Fleet report is missing description 280
H Fleet report serial number doesn’t match invoice serial number 1303
Measure Phase Questions

1. What is the goal or objective of the Measure Phase?
2. Based on the definition of defect(s) identified in the Define Phase, what are the defect
opportunities for each forklift charge/invoice?
3. Calculate the current process Sigma Level for the forklift billing process based on the number of
identified defect opportunities.
4. After creating a Pareto Chart, identify the primary defect(s) and your next steps.
Measure Phase Answers

1. The purpose of the Measure phase is to gather as much data about the process as possible to
better understand the current situation.
2. Defect opportunities include location, accurate charges, and serial number agreement.
3. Based on the opportunities listed, here is the calculation for the process Sigma Level:
Step Equation Result

Determine number of defect opportunities per unit O= 3
Determine number of units processed N= 5026
Determine total number of defects made D= 2412
Calculate defects per opportunity DPO = D / (N X O)= 0.1599682
Calculate yield Yield = (1-DPO)*100 84.00
Sigma Level from Sigma conversion table process sigma = 2.495

4. The primary defect code is H which indicates the number of times the fleet report and invoice
serial numbers do not match (code H), as shown in the Pareto Chart. The team should use the
information to focus the scope of the project on minimizing this defect type.
Project Update: Redefining Project Scope

You arrange to meet your Champion to present your team’s findings so far. From the Pareto charts,
you conclude the primary defect is the mismatch of the fleet report serial number with the invoice
serial number. Because of the high occurrence of this defect, your Champion narrows the scope of
the project to improve the match of the serial numbers in the fleet records to the vendor bills.
Measure Phase Questions

5. Based on the new scope, how will you describe the defect and how many defect opportunities
exist per charge?
6. Recalculate process Sigma Level from the new defect definition. This value will be your process
baseline to measure the improvements in performance.

7. The new defect definition is any invoice serial number that does not match the company and
vendor records. This is now one defect opportunity per unit.
8. Based on the change in scope, the new project Sigma Level is calculated as shown here:

Determine number of defect opportunities per unit O= 1
Calculate defects per opportunity DPO = D / (N X O)= 0.25925189
Sigma Level from Sigma conversion table Process sigma = 2.146
In the Measure Tollgate, your Champion sets a goal for the project team of 3.0 Sigma Level based on
your updated baseline calculation.
Hypothesis Testing
Learning Objectives
Explain the basics of hypothesis testing
Perform tests for Means, Variances, and Proportions
Conduct hypothesis testing with non-normal data

Scenario
Java Coffee House implemented an improved process at facility B, which would help reduce defects. The
desire is to compare the impact of the improved process at facility B to the standard process being
performed at facility A.
How could you confidently say that the new process is significantly better than the standard process?
Yield A Yield B
80 85
80 81
80 95
93 95
93 89
87 87
82 92
81 81
93 82
Basics
Hypothesis Testing
Hypothesis test is used to prove or disprove a theory or claim by comparing two

or more samples or comparing a single sample to a defined value.
A Six Sigma project produced significant improvements in average

performance
Product quality is independent of supplier
The average cycle time for processing similar products is the same
between two different facilities
Hypothesis Testing
Handle uncertainty in data
Minimize subjectivity
⯑ Question assumptions
Manage decision error risk

Hypothesis Testing
• Determine what to compare and assume that there is no difference

• Decide how much risk of being wrong is acceptable
• Use data to calculate a test statistic
• Compare the test statistic to a critical test statistic
• Make a decision by comparing p-value to accepted risk value
Null Hypothesis vs. Alternative Hypothesis
Null Hypothesis Alternative Hypothesis
● Represented as H0 ● Represented as Ha
● Statement of no change or difference ● Statement of change or difference
● Cannot be proved, only rejected ● Challenges the null hypothesis
● Example: Movie is worth watching. ● Example: Movie is not worth watching.
🖝 H0 : µa = µb
Ha : µa ≠ µb
Null is stating there is no difference in means
Alterative is stating there is a difference in means
Hypothesis Testing
Type I Error Type II Error
● Accepting a null hypothesis when it is false

● Rejecting a null hypothesis when it is true
● False negative
● False positive ● Also known as Consumer’s Risk
● Also known as Producer’s Risk ● ‘β’ is the chance of committing a Type II
● Significance level or ‘α’ is the chance of Error
committing a Type 1 error ● The value of ‘β’ is 0.2 or 20%
● The value of ‘α’ is 0.05 or 5% ● Any experiment should have as less β value
as possible
Example: When a movie is worth watching, it is
reviewed as ‘not worth watching.’ Example: When a movie is not worth watching,
it is reviewed as ‘worth watching.’
Type I and Type II Errors
Court’s Decision
Accept Null: Reject Null:

Defendant is NOT Guilty Defendant is Guilty
Null is True: Type I Error

Actually Innocent Correct
α-Risk
The
Truth
Null is False: Type II Error

Correct
Actually Guilty β-Risk
Probability of making one type of error can be reduced
A false null hypothesis may be accepted (type II error)
‘Α’ is set at 0.05, which means the risk of committing a type I error will be 1
out of 20 experiments
It is important to decide what type of error should be less and set ‘α’ and ‘β’
accordingly
Power of a Test
• The probability of correctly rejecting the null hypothesis when it is false
• The complement to Type II error and represented as 1-β
• The probability of not committing a type II error
• Helps in improving the advantage of hypothesis testing
• With highest value should be preferred when given a choice of tests
Confidence Level
• The probability of correctly failing to reject the null hypothesis when it is true
• The complement to Type I error and represented as 1-α
• The probability of not committing a Type I error
Sample Size
The sample size for continuous data can be

determined by the formula:
• How much variation is present in the population?
(σ)
• At what interval or tolerance does the true

population mean need to be estimated? ( ±Δ) The sample size for discrete data can be
determined by the formula:
• How much representation error is allowed in the

sample? ( α)
Standard Sample Size Formula
To calculate the standard sample size for continuous data, the value of α is taken
as 5%.
According to Z table, the Z97.5 = 1.96.
The standardized sample size formula

Q The population standard deviation for the time, to resolve customer problems, is 30
hours. What should be the size of a sample that can estimate the average problem
resolution time within ± 5 hours tolerance with 99% confidence?
A Δ = 5, σ = 30, α =0.01, and Z99.5 = 2.58
Sample size = [(2.575*30)/5]2 = 238.70 = 239

To calculate the standard sample size for discrete data, the average
population proportion of non-defective is ‘p’ and value of α is taken as 5%.
DISCRETE DATA
Where = Tolerance allowed on either side of the population proportion average in percentage.
Q The non-defective population proportion for pen manufacturing is 80%.

What should be the sample size to draw a sample that can estimate the
proportion of compliant pens within ± 5% with an alpha of 5%?
A Δ = 0.05, σ 2= 0.8 (1-0.8), α = 0.05, and Z97.5 = 1.96
Sample size = (1.96/0.05)2 *0.8*0.2 = 245.86 = 246

P-Values
The P-value is the probability that any differences observed are due to random
chance or common cause variation.
A small p-value indicates a small probability that the observed results

could happen under the assumption that the null hypothesis is true.
Low p-values lead us to reject the null hypothesis.
If lower than alpha risk, the null is rejected in favor of the alternative.
High p-values indicate that we haven’t gathered sufficient data or evidence

to not reject the null hypothesis.
Test Statistics
A test statistic is used to determine the validity of a

hypothesis test.
The test statistic is calculated based on the

observations.
Directional, Left-tail Test
If the null hypothesis is true the test statistic will be a
random variable with a known distribution.
If we can conclude that the test statistic came from the

population, then the null is not rejected.
If it is not likely for the test statistic to come from Directional, Right-tail Test
population, then the null is rejected.
This is determined by comparing the test statistic to a

critical value.
The calculation of the test statistic and critical value will

depend on the particular hypothesis test.
Non-Directional, Two-tail Test
2 Tailed Probability and 1 Tailed Probability
Use of 2-tailed probability and 1-tailed probability depends

on the direction of the alternative hypothesis.
2-Tailed Probability 1-Tailed Probability
If the alternate hypothesis tests more than one If the alternate hypothesis tests one direction,
direction, either less or more, use a 2-tailed use a 1-tailed probability value from the test.
probability value from the test.
Example: Example: If Mean of A is greater than Mean of B,
If Mean of A is not equal to Mean of B, then it is then it is 1-tailed probability.
2-tailed probability.
Hypothesis Test Conclusions
Compare a calculated • If test statistic > critical value, Reject H0

test statistic to a • If test statistic < critical value, Fail to reject H0
critical value
Compare the p-value • If p-value < alpha risk, Reject H0

to the alpha risk • If p-value > alpha risk, Fail to reject H0
Statistical and Practical Significance of Hypothesis Test
Significant but not Practical

The Java Coffee House distribution center is comparing two methods for fulfilling
orders in which the new method is significantly faster than the standard method by
30 minutes; however to justify the cost of changing to the new method, a reduction
of an hour is required.
Practical but not Significant

A call center is piloting new technology to process payments which has increased
transactions by 500 per day. Although the new technology has a higher average
that will have a practical impact to the business, there is no statistically significant
difference since p ≥ 0.05
Tests for Means, Variances, and Proportions
Hypothesis Testing Roadmap
Hypothesis
Test
Continuous, Discrete
Normal Data Data
1 group 2 groups >2 groups 1 Factor 2 Factor
1-Way
Mean Variation Variation Mean 1 Group 2 Groups >2 Groups
ANOVA
n>30; n<30 &/or 1- 2–

Dependent Independent Contingency
F test Proportion Proportion
σ known σ unknown Data Data Table or χ2
Test Test
n1,n2<30 &/or
1 Sample Z 1 Sample t n1, n2 ≥30 ;
Paired t Test σ1,σ2
Test Test σ1,σ2 known
unknown
2 Sample Z 2 Sample t
test Test
Hypothesis Testing Formulas
Test Test For Test Distribution Conditions

Statistic
1 Sample Z test
1 Sample t test
1 Proportion
test
CALCULATE TEST STATISTICS
2 Sample Z test
2 Sample t test
Paired t Test
2 Proportion
test
1 Sample Test
H0: Average height of North American men is165 cm
Ha: Average height of North American men is not 165 cm
Z-Test t-test
Sample Size (n) = 117 Sample Size (n) = 25
Sample Average = 164.5 cm Sample Average = 164.5 cm
Z Test Statistic = 1.04 t Test Statistic = 0.5

1 Sample Test
In hypothesis test for variance, Chi-square test is used.
H0: Proportion of wins in Australia or abroad is independent of the country played against
Ha: Proportion of wins in Australia or abroad is dependent on the country played against
χ2 Critical = 6.251
χ2 Calculated = 1.36
Result:
Since calculated value is less than the critical value, the proportion of wins of Australia hockey team
is independent of the country played or place.
1 Sample Test
H0: Proportion of smokers among men in a place named R is 0.10 (p0)
Ha: Proportion of smokers among men is R is different that 0.10
H0: p = p0 against Ha: p p0
Among n = 150 adult men interviewed, 23 were found smokers.
Sample proportion p = 23/150 = 0.153
Compute test statistic: Zcalc = = 1.80
Reject H0 at level of significance α if zcalc > z1-a/2
Since, z.975 = 1.96, the null hypothesis is not rejected at 5% level of significance.
Result: It can be concluded based on the sample that the proportion of smokers in R is 0.10.
Means of Two Groups
Understand the significant difference in the outcome of the two processes
Understand whether a new process is better than an old process
Understand whether the two samples belong to the same population or a

different population
Benchmark the existing process with another process

2 Sample Test
H0: μ1 = μ2 against Ha: μ1 ≠ μ2

Two samples of sizes n1 = 125 and n2 = 110 are taken from the two populations
= 167.3, = 165.8, s1 = 4.2, s2 = 5.0 are the sample means and SDs respectively
Compute test statistic
Reject H0 at level of significance α if I Computed t I > tDF,a/2; DF = (n1 – 1) + (n2 – 1) = 124 + 109 = 233
Since t233,0.025 = 1.97[“=T.INV.2T(.05,233)”], the null hypothesis is rejected at 5% level of significance
2 Sample Test
Q Obtained earnings data for Company A = 31 years

Obtained earnings data for Company B = 41 years
Sample standard deviation of Company A’s earnings = $4.40
Sample standard deviation of Company B’s earnings = $3.90.
Determine whether the earnings of Company A have a greater

standard deviation than those of Company B at 5% level of significance.
A
H0 : σA2= σB2 ; the variance of Company A’s earnings is equal to the
variance of Company B’s earnings.
Ha : σA2 ≠ σB2 ; the variance of Company A’s earnings is different.
σA2= variance of Company A’s earnings.
σB2= variance of Company B’s earnings.
F-Test Example
dfA (degrees of freedom of A) = 31 – 1 = 30

Results
dfB (degrees of freedom of B) = 41 – 1 = 40
The F-test statistic (1.273) is not greater than the
critical value (1.74). Therefore, at 5% significance

Critical value from F-table = 1.74
level, the null hypothesis cannot be rejected.
[“=F.INV.RT(0.50,30,40)”].
Calculation of F-test statistic:
F= (SA2/SB2) = 4.402/3.902 = 1.273
σA > σB. In calculating the F-test statistic, always put the greater
variance in the numerator.
F-Test Example
A restaurant wants to explore the overuse of avocados. It suspects that there is a

difference in the way the two chefs use avocados and the number of avocados
used, in pounds.
Group A (Chef 1) Group B (Chef 2)
4.2 4
4.5 4.5
7.2 5
6.1 5.2
8.9 5.3
5.2 6.1
Conducting F-Test In MS Excel
F-Test Example
Null Hypothesis
• There is no significant statistical difference between the variances of the two groups
• This is Common Cause of Variation
Alternate Hypothesis
• There is a significant statistical difference between the variances of the two groups
• This is Special Cause of Variation

F-Test Example
F-Test Two-Sample for Variances
• The p-value is 0.03. Variable

Variable 2
1
• If p-value is < 0.05, null must be rejected. Mean 6.016666667 5.016666667
Variance 3.197666667 0.517666667

• Null hypothesis with 97% confidence is rejected.
Observations 6
6
• The fact that variation could only occur due to
df 5 5
Common Cause of Variation is rejected.
F 6.177076626
• There could be Assignable Causes of Variation or
P(F<=f) one-tail 0.033652302
Special Causes of Variation.
F Critical one-tail 5.050329058

t-Test
Select 2-Sample
Open MS Excel,
Independent t-
click Data, and
test assuming
click Data
unequal
Analysis.
variances.
In Variable 1
range, select the
data set for
Group A.
In Variable 2 Keep the

range, select the “Hypothesized
data set for Mean Difference”
Group B. as 0.
Click OK.
t-Test
Group A (Chef 1) Group B (Chef 2)
4.2 4
4.5 4.5
7.2 5
6.1 5.2
8.9 5.3
5.2 6.1
t-Test
Null Hypothesis
• There is no significant statistical difference between the means of the two groups
• This is Common Cause of Variation
Alternate Hypothesis
• There is a significant statistical difference between the means of the two groups
• This is Special Cause of Variation
H0 : Mean of Group A = Mean of Group B
Ha : Mean of Group A ≠ Mean of Group B

t-Test
t-Test: Two-Sample Assuming Unequal

Variances
Variable 1 Variable 2
Mean 6.016666667 5.016666667

The p-value of 2-tailed probability testing is 0.24
Variance 3.197666667 0.517666667
Observations 6 6 This value is greater than 0.05
Hypothesized
0
Mean
The null hypothesis is not rejected
df 7
T Stat 1.270798616
Both the groups are statistically same
P(T<=t) one-tail 0.122200546
T Critical one-tail 1.894578605
P(T<=t) two-tail 0.244401092
T Critical two-tail 2.364624252
t-Test
Jan Feb
360 365
The paired t-test is conducted before and after the
324 325
process to measure:
377 359
336 352
Customer satisfaction before and after improvements 383 397
361 351
369 367
Employee performance before and after training 349 397
301 335
354 338
344 349
329 393
337 370
387 400
378 411
ANOVA
Used to compare the means of more than two samples
Stands for analysis of variance
Helps in understanding that all sample means are not

equal
Shortlisted samples can further be tested
Generalizes the t-test to include more than two

samples.
ANOVA
Q
Outlet 1 Outlet 2 Outlet 3
The table shows the takeaway food delivery time of
48 50 49
three different outlets.
Is there any evidence that the averages for the three 49 48 48
outlets are not the same?
48 36 39
53 50 49
A
58 50 34
The null hypothesis will assume that the three
means are equal. If the null hypothesis is rejected, it
50 62 33
would mean that there are at least two outlets that 46 45 57
are different in their average delivery time.
50 47 48
49 51 47
47 44 39
ANOVA
Select the
Enter the data in ANOVA – single
Select all the
an Excel factor test from
cells for analysis
spreadsheet the Data Analysis
“Toolpack”
Chi-square distribution (χ²-distribution) or Chi-squared

● Is a widely used probability distribution in inferential statistics;
● Needs one sample for the test to be conducted; and
● Has k-1 degrees of freedom and is the distribution of a sum of the squares of k independent
standard normal random variables.
Estimated Population Sample Statistics

Parameters
There is a different Chi-square distribution for each of the different numbers of degrees of freedom.
For Chi-square distribution, degrees of freedom are calculated according to the number of rows and
columns in the contingency table.
Hypothesis Testing with Non-normal Data
Non-Parametric Test
Non-parametric tests do not make any assumptions about a distribution model where the
data could fit.
Non-parametric tests compare groups of medians using the relative ranks of the data
within the groups.
Non-Parametric Test
Corresponding Parametric
Non-parametric Test Main Characteristics
Tests
1 sample Sign test Test on the median, for non symmetric distribution 1 sample t or Z test
Test on the median for symmetric distribution

1 sample Wilcoxon test 1 sample t or Z test
(pairwise averages)
Mann and Whitney test Test on ranks to compare center of 2 groups 2 samples t or Z test
Test on ranks to compare center of 2 or more groups;

Kruskal-Wallis test based on the Chi Square Distribution
One Way ANOVA
More powerful than Mood’s median test but less
robust to outliers
Test on the overall median; based on the Chi Square
test
Mood’s median test One Way ANOVA
More robust to outliers than the Kruskal-Wallis test,
but less powerful
Freidman Test Test on ranks, based on the Chi Squared distribution Two-way randomized ANOVA
Same rules apply: If p < α reject the Null Hypothesis

Non-Parametric Test
Mann-Whitney test is a non-parametric test used to compare the center between two
unpaired groups
MANN-WHITNEY TEST—DEFINITION
Non-Parametric Test
The obtained U has to be equal to or less than this critical value.
The calculated value is not equal to or less than 2. Therefore, there is no statistical difference between
the means of the two groups.
Non-Parametric Test
The Kruskal-Wallis test is used for testing the source of origin of the samples.
Only way to analyze the variance by ranks
Medians of two or more samples are compared to find

the source of origin
Does not assume the normal distribution of the

residuals
Testing the ratings of a product from three different groups to see if the ratings are the
same or different
Non-Parametric Test
The Mood’s Median is a non-parametric test used to test the equality of medians from two
or more different populations. The test works if:
• The output (Y) variable is continuous, discrete-ordinal, or discrete count.
• The input (X) variable is discrete with two or more attributes.
Find the number of

Find median of the values in each sample
combined data set that are greater than
the median
Form a contingency Find expected value

table for each cell
Compare Chi-square
Find Chi-square value value to critical Chi-
Square value
Example:
To determine whether temperature changes in the ocean water near a nuclear power plant will have a
significant effect on the animal life in the region, an environmental group places groups of fish in four bowls that
are identical in except for water temperature. Six months later, they measure the weights of the fish.
Non-Parametric Test
The Friedman Test is a form of non-parametric test that does not make any
assumptions on the origin of the sample.
A marketing company wants to compare the relative effectiveness of three different modes of advertising:
Direct Mail Newspaper Magazine Advertisements.
The company conducts a randomized block design experiment. For 14 customers, the marketing company
used all three modes during a 1-year period and recorded the percentage response to each type of
advertising.
Non-Parametric Test
1 Sample Sign test is the simplest of all non-parametric tests

that can be used instead of one sample t test
Count the Count the

number of number of Test the
positive negative values
values values
HR of a large company analyzes its payroll to determine whether the company's median
salary differs from the industry average.
Non-Parametric Test
1 Sample Wilcoxon Test is a non-parametric test.
It is equivalent to 1 Sample t-Test and is more powerful than 1 Sample sign test.
It is used to estimate the population median and compare it to a target or reference value.
It assumes the existing sample is randomly taken from a population.
The median customer satisfaction score of an organization has always been 3.7.
Management wants to see if it has changed. They conducted a survey and got the results
grouped by the customer type
Conclusion:
⮚ If median = 3.7 then Fail to Reject Null
⮚ If median ≠ 3.7 then Reject Null
Key Takeaways
Hypothesis test is used to prove or disprove a theory or claim by testing

two or more samples or comparing a sample to a defined value.
In deciding to reject or not reject the null hypothesis, we can make two
possible decision errors—Type I and Type II errors.
To calculate the standard sample size for discrete data, the average
population proportion non-defective is ‘p’ and value of α is taken as 5%.
The P-value is the probability that any differences observed are due
to random chance or common cause variation.
A test statistic is used to determine the validity of a hypothesis test.
Non-parametric tests include Mann-Whitney Test, Kruskal-Wallis

Test, Mood’s Median Test , Freidman Test, 1 Sample Sign Test, and 1
Sample Wilcoxon Test.
Knowledge Check
Knowledge
Check If p value is 0.05 and the confidence level is 90%, what would be the hypothesis test
1 conclusion?
A. Fail to reject the null hypothesis
B. Reject the null hypothesis
C. Reject the alternative hypothesis
D. Not enough information

Knowledge
Check If p value is 0.05 and the confidence level is 90%, what would be the hypothesis test
1 conclusion?
A. Fail to reject the null hypothesis
B. Reject the null hypothesis
C. Reject the alternative hypothesis
D. Not enough information
Alpha value is 10%. Since confidence level is 90% and p is smaller than the alpha value, the null hypothesis is rejected
Knowledge
Check An Assembly team desired to see if there was any performance improvement after
2 completing a Six Sigma project. What hypothesis could be used?
A. F-test
B. Two Sample t-test
C. One Sample t-test
D. Paired t-test
Knowledge
Check An Assembly team desired to see if there was any performance improvement after
2 completing a Six Sigma project. What hypothesis could be used?
A. F-test
B. Two Sample t-test
C. One Sample t-test
D. Paired t-test
To see if a process has improved, a paired t-test should be used to compare the before and after improvement state.
Knowledge
Check
Which non-parametric test is similar to a single factor ANOVA?
3
A. Sample Sign
B. Wilcoxon Sign test
C. Mood’s Median
D. Freidman’s Test
Knowledge
Check
Which non-parametric test is similar to a single factor ANOVA?
3
A. Sample Sign
B. Wilcoxon Sign test
C. Mood’s Median
D. Freidman’s Test
Mood’s median is similar to a single factor ANOVA . It is able to test for the difference in medians for more than 2
groups.
Knowledge
Check A team wants to test if a new drug reduced pain in the patients. What would be the
4 Type II error?
A. The new drug really works and team concludes it works
B. The new drug does not work and team concludes it works
C. The new drug really works and team concludes it does not work
D. The new drug does not work and the team concludes it does not work
Knowledge
Check A team wants to test if a new drug reduced pain in the patients. What would be the
4 Type II error?
A. The new drug really works and team concludes it works
B. The new drug does not work and team concludes it works
C. The new drug really works and team concludes it does not work
D. The new drug does not work and the team concludes it does not work
Type II error fails to reject the null hypothesis when it is false. Therefore, if the null hypothesis is the drug, it does not
cause a difference in pain levels.
Knowledge
Check Which hypothesis test is used to compare the variance for two groups with normal
5 data?
A. Z Test
B. F Test
C. t-Test
D. χ2 Test
Knowledge
Check Which hypothesis test is used to compare the variance for two groups with normal
5 data?
A. Z Test
B. F Test
C. t-Test
D. χ2 Test
The F test is used to compare variance for two or more groups with normal data.
Knowledge
Check The population standard deviation for the time, to resolve customer problems, is 20 hours.
What should be the size of a sample that can estimate the average problem resolution time
6 within ± 2 hours tolerance with 95% confidence?
A. 385
B. 384
C. 386
D. 400
Knowledge
Check The population standard deviation for the time, to resolve customer problems, is 20 hours.
What should be the size of a sample that can estimate the average problem resolution time
6 within ± 2 hours tolerance with 95% confidence?
A. 385
B. 384
C. 386
D. 400

Knowledge
Check After conducting a hypothesis test at 5% significance level the test statistic was 30, the
7 critical value was 25, and the p-value was .10. What can we conclude?
A. Reject the null hypothesis
B. Fail to reject the null hypothesis
C. Not enough information to decide
D. Something went wrong with the test

Knowledge
Check After conducting a hypothesis test at 5% significance level the test statistic was 30, the
7 critical value was 25, and the p-value was .10. What can we conclude?
A. Reject the null hypothesis
B. Fail to reject the null hypothesis
C. Not enough information to decide
D. Something went wrong with the test
The p-value indicates failure to reject the null and the test statistic indicates rejection of the null. Therefore, there is a
discrepancy because both methods should always lead to the same conclusion.
Knowledge
Check
Which non-parametric test is similar to a 1 sample t test?
8
A. Freidman
B. Kruskal-Wallis
C. Wilcoxon Signed Rank
D. Mood’s Median
Knowledge
Check
Which non-parametric test is similar to a 1 sample t test?
8
A. Freidman
B. Kruskal-Wallis
C. Wilcoxon Signed Rank
D. Mood’s Median
Wilcoxon Signed Rank test is is similar to a 1 sample t test. It is also known as the 1 Sample Wilcoxon Test.
Exploratory Data Analysis
Learning Objectives
Create a Multi-Vari chart
Explain Correlation and Linear Regression
Determine a linear relationship between multiple variables

using Multiple Regression
Scenario
Brew Time?
Using Multi-Vari
analysis and
Inconsistent coffee temperature
Regression analysis
Burner?
Look at Interactions
in Data
Cup used?
Java House Coffee

Time taken to Identify Cause and
provide filled Effect Relationships
cup to
customer?
Multi-Vari Analysis
Multi-Vari Analysis
Analyzes variation in a process
Identifies investigation areas
Breaks down the variations into component families
Multi-Vari analysis is used when you have multiple discrete Xs (like work shift, employee, location) and Y is
continuous (like part length or cycle time).
Multi-Vari Analysis
Positional Cyclical Temporal
Variations among Variations which occur over

Variations due to location sequential repetitions longer periods of time
Multi-Vari Analysis
Select Process Create a Link the

Decide Sample
and Tabulation Plot the Chart Observed
Size
Characteristics Sheet Values
• Select the process • Sample size is five • The tabulation • Chart is plotted • The observed
where 1 inch plates pieces from each sheet with data with time on X axis values are linked by
are manufactured equipment records contains and the plate appropriate lines.
with 4 equipment the columns with thickness on Y axis.
• Frequency of data time, equipment
collection is every number, and
• Measure its thickness as
thickness within a two hours starting
from 8AM until headers.
specified range of
0.95 – 1.05 inches 2PM
Multi-Vari Analysis
Correlation and Linear Regression
Correlation
‘r’ or Pearson’s Coefficient of Correlation
-1 0 +1
Movement in both No correlation Movement in both
variables is inverse between the two variables is same
variables
Higher the absolute value of ‘r’, stronger is the correlation between Y and X.
An ‘r’ value of > +0.70 or < -0.70 indicates a strong correlation.
Correlation
Y Y
X X
Y Y
-
X X
Correlation
First Correlation Second

Test Correlation Test
First grade High school
scores – scores –
Independent Independent
variable variable
College College
performance – performance –
Dependent Dependent
variable variable
Correlation Correlation
Coefficient Coefficient
r = 0.29 r = 0.45
Correlation
Strength of
the Significance
r relationship p of the
between two relationship
variables
• 𝐻0 : r = 0
If p < ∝ • 𝐻𝑎 : r ≠ 0
Correlation
Exercise
Be careful with Beware of non-
caution while Check for
claims of linear
Correlating outliers
causality relationships
averaged data
Regression Analysis (𝐑𝟐 )
Regression analysis generates a line on scatter plot that quantifies the relationship between X and Y.
A regression equation describes the line Y = f(X)
Predict future
values of Y given X,
and X given Y
If a high percentage
of variability in Y (R2 >
70%) is explained by
changes in X
Regress Y on one or
more X’s
simultaneously
Regression Analysis (𝐑𝟐 )
Transfer
function
to
control Y
Vital X
Regression Analysis
The Simple Linear Regression or SLR should be used as a statistical validation

tool in the beginning of the analyze phase.
Simple Linear Regression (SLR)
Y = A + BX ± C Y = Dependent variable/output/response
X = Independent variable/input/predictor
A = Intercept of fitted line on Y axis
B = Regression coefficient/Slope of the fitted line
C = Error in the regression model

SSE = σ𝑛𝑖=1(𝑦𝑖 −𝑦ො𝑖 )2

Temperature (X) Chirps/sec (Y)

88.6 20
71.6 16
Relationship between 93.3 19.8
cricket chirps/sec and
temperature (90F)? 84.3 18.4
80.6 17.1
75.2 15.5
69.7 14.7
82 17.1
69.4 15.4
83.3 16.2
79.6 15
82.6 17.2
80.6 16
83.5 17
76.3 14.4
To perform Simple Linear Regression:

1. Insert the data into Excel.
2. Click Insert and choose the Plain Scatter Chart (Scatter with only Markers).
3. Right-click on the data points and choose “Add Trendline”.
4. Choose “Linear” and select the boxes titled, “Display R-Squared value” and “Display equation”.
Regression Analysis with MS Excel
Using the
transfer
High value of R2
function,
y=0.2119x-
30% variation
0.3091,
due to residual
Chirps/sec =
70% of factors
18.76 when
variability in Y is
Temp = 90F
R2 = 0.6975 explained by X
If 𝑅2 value is small, refer to the Cause and Effect Matrix and study the
relationship between Y and a different X variable.
SLR Using MS Excel
Residual Analysis
Residual Plots for Y (Chirps/Sec)

Normal Probability Plot Versus Fits
99
90 1
Residual
Percent
0
50
-1
10
1 -2
-2 -1 0 1 2 15 16 17 18 19
Residual Fitted Value
Histogram Versus Order

4
1
3
Frequency
Residual
0
2
-1
1
0 -2
-1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Residual Observation Order
Linear Regression
SST = SSR + SSE SSR = SST - SSE R2 =

𝑆𝑆𝑅
SST = σ𝑛𝑖=1(𝑦𝑖 − 𝑦ത𝑖 )2 𝑆𝑆𝑇
To check for error, take two observations of Y at the same X.
Prioritization of Xs can be done through the SLR equation; run

separate regressions on Y with each X.
If an X does not explain variation in Y, it should not be explored

further.
Impact of Extrapolation
The obtained fitted line equation cannot be used to predict Y for

values of X outside of the data set.
Correlation and Causation
• A regression equation denotes the relationship between two variables.

• A change in one variable may not cause a change in the other.
• The change in the variables could be caused due to a third factor.
Multiple Regression
Multiple Regression
Multiple Regression
• If a new variable, X2, is added to the r2 model, the impact of X1 and X2 on Y gets
tested.
• 𝑌 = 𝑏0 + 𝑏1 𝑋1 + 𝑏2 𝑋2 + ⋯ + 𝑏𝑛 𝑋𝑛
• where 𝑋1 , 𝑋2 , … 𝑋𝑛 are multiple independent variables
Nonlinear Regression
Exponential Quadratic
y = α*x^ß y = a*x^2 + b*x + c
Other nonlinear regressions models are Cubic, Quartic, Power, Logarithmic, and Logistic
Multiple Regression
Multiple Regression
Linear
Non-normal Data Transformation Normal Data

Data
Box and Cox
Linear Transformations
• The original data is multiplied or divided by a coefficient or a constant is subtracted or added.

• Do not change the shape of the data distribution.
F = C x (9/5) +32
Box and Cox Transformations
λ Y’
Family of power
-2 Y-2 = 1/Y2
transformations are used for
-1 Y-1 = 1/Y1
-0.5 Y-0.5 = 1/(√(Y))
Converting a dataset to
0 log(Y) use parametric statistics
0.5 Y0.5 = √(Y)
1 Y1 = Y
Any continuous data > 0
2 Y2
λ value from -5 to +5 Note: The use of transformation will not

guarantee normality
Box and Cox Transformations
Original Data - Transformed Data -

Abnormal Normal
Key Takeaways
Multi-Vari analysis analyzes the variation in a process.
Multi-Vari chart shows the type of variation in the product and

helps in identifying the root cause.
The Coefficient Correlation shows the strength of the relationship

between variables X and Y.
The Coefficient Correlation shows the strength of the relationship

between variables X and Y.
Key Takeaways
Regression analysis generates a line on scatter plot that

quantifies the relationship between X and Y.
SLR should be used as a statistical validation tool in the

beginning of the analyze phase.
Multiple regression allows us to determine a linear

relationship between multiple variables.
Linear and Box and Cox methods are data transformation

methods.
Knowledge Check
Knowledge
Check
Which is NOT a variation component analyzed in Multi-Vari studies?
1
A. Cyclical
B. Temporal
C. Special
D. Positional
Knowledge
Check
Which is NOT a variation component analyzed in Multi-Vari studies?
1
A. Cyclical
B. Temporal
C. Special
D. Positional
The variation components analyzed in Multi-Vari studies are positional, cyclical, and temporal. So, option c is the
answer.
Knowledge
Check
Which correlation value indicates a strong negative relationship?
2
A. + 0.90
B. + 0.50
C. - 0.50
D. - 0.90
Knowledge
Check
Which correlation value indicates a strong negative relationship?
2
A. + 0.90
B. + 0.50
C. - 0.50
D. - 0.90
A negative relationship is indicated by a minus sign and the larger the absolute value, the stronger is the relationship.
So, option d is the best choice.
Knowledge
Check A team wants to predict the delivery hours when the independent variable of training hours is
10. The model equation is y = 13x-5 and r value is 0.40. What is the result?
3
A. 0.4
B. 125
C. 0.16
D. Results should not be calculated using model since ‘r’ is small

Knowledge
Check A team wants to predict the delivery hours when the independent variable of training hours is
10. The model equation is y = 13x-5 and r value is 0.40. What is the result?
3
A. 0.4
B. 125
C. 0.16
D. Results should not be calculated using model since ‘r’ is small
Although a predicated value for Y could be calculated, it should not be based on the coefficient of correlation value.
Knowledge
Check A team discovers that their output variable is not normal and desires to transform the data.
Using the Box and Cox method the team is provided a λ value of -1. What would an output value
4 of 35.5 transform to?
A. 1.55
B. 0.028
C. 17.75
D. 71
Knowledge
Check A team discovers that their output variable is not normal and desires to transform the data.
Using the Box and Cox method the team is provided a λ value of -1. What would an output value
4 of 35.5 transform to?
A. 1.55
B. 0.028
C. 17.75
D. 71
The -1 lambda transformation is 1/Y and therefore the inverse of 35.5 is 0.028.
Knowledge
Check
Which residual plot is used to see if the residuals have a constant variance?
5
A. Residual Normality Plot
B. Residual vs. Fit Plot
C. Residual Histogram
D. Residual vs. Order

Knowledge
Check
Which residual plot is used to see if the residuals have a constant variance?
5
A. Residual Normality Plot
B. Residual vs. Fit Plot
C. Residual Histogram
D. Residual vs. Order
The residual versus fit plot checks to see if all residuals randomly center around a center value of 0 to prove constant
variance.
Lean Six Sigma Activities and Tools: Analyze
Activities
❑ Review Project Charter ❑ Process Map Flow ❑ Identify Root Causes ❑ Develop Potential Solutions ❑ Develop SOP’s, Training
❑ Validate High-Level Value ❑ Identify Key Input, Process ❑ Reduce List of Potential ❑ Evaluate, Select, and Plan & Process Controls
Stream Map and Scope and Output Metrics Root Causes Optimize Best Solutions ❑ Implement Solution and
❑ Validate Voice of the ❑ Develop Data Collection ❑ Confirm Root Cause to ❑ Develop ‘To-Be’ Process Ongoing Process
Customer Plan Output Relationship Maps Measurements
& Voice of the Business ❑ Validate Measurement ❑ Estimate Impact of Root ❑ Develop and Implement ❑ Confirm Attainment of
❑ Validate Problem Statement System Causes on Key Outputs Pilot Solution Project Goals
and Goals ❑ Collect Baseline Data ❑ Prioritize Root Causes ❑ Implement 5s Program ❑ Identify Project Replication
❑ Validate Financial Benefits ❑ Determine Process ❑ Statistical Analysis ❑ Develop Full Scale Opportunities
❑ Create Communication Plan Capability ❑ Complete Analyze Tollgate Implementation Plan ❑ Training
❑ Select and Launch Team ❑ Complete Measure Tollgate ❑ Cost/Benefit Analysis ❑ Complete Control Tollgate
❑ Develop Project Schedule ❑ Complete Improve Tollgate ❑ Transition Project to
❑ Complete Define Tollgate Process Owner
❑ SIPOC Map ❑ Statistical Sampling ❑ Hypothesis Tests ❑ Design of Experiments Procedures (SOP’s)
❑ Stakeholder Analysis Analysis (MSA) Regression ❑ Solution Selection Matrix ❑ Visual Process Control
❑ Communication Plan ❑ Gage R&R ❑ ANOVA ❑ Piloting Tools
❑ Effective Meeting Tools ❑ Control Charts ❑ Components of ❑ Pugh Matrix ❑ Statistical Process Controls
❑ Time Lines, Milestones, ❑ Histograms Variation ❑ Pull System (SPC)
and Gantt Charting ❑ Normality Test ❑ Visual Workplace
❑ Pareto Analysis ❑ Process Capability ❑ Total Productive
Analysis Maintenance
❑ Metrics
Tools
Analyze Tollgate Questions
❑ Has the team analyzed data about the process and its performance to help stratify the problem, understand reasons for
variation in the process, and generate hypothesis as to the root causes of the current process performance?
❑ Has an evaluation been done to determine whether the problem can be solved without a fundamental recreation of the
process? Has the decision been confirmed with the Project Sponsor?
❑ Has the team investigated and validated (or de-validated) the root cause hypotheses generated earlier, to gain confidence that
the “vital few” root causes have been uncovered?
❑ Does the team understand why the problem (the Quality, Cycle Time or Cost Efficiency issue identified in the Problem
Statement) is being seen?
❑ Have learning’s to-date required modification of the Project Charter? If so, have these changes been approved by the Project
Sponsor and the Key Stakeholders?
❑ Have any new risks to project success been identified, added to the Risk Mitigation Plan, and a mitigation strategy put in place?
Note :With answers to these questions you are now ready to move to the Measure Phase.
Project: Analyze Phase
Analyze Phase
Note:
single problem.
Project Update: Outcome Summary
Your team has completed the Define and Measure phases. Based on the Pareto chart, your team
identified the primary defect for the process as any difference of serial numbers between fleet records
and invoices received from the vendors. The scope of the project was narrowed to improve the match
of the serial numbers between fleet records and vendor invoices. Baseline process sigma is 2.14 Sigma
and the team’s goal is to improve to 3.0 Sigma.
Project Update: Root Cause
Your team explored several theories on what might be major contributors to the problem but needed to
test the theories with data. You studied the report or way to stratify the data. The team decided to test the
theory that there is no difference in defect rates between divisions. The team broke down the data by
division and then by entries on the fleet report that contain errors and entries that do not contain errors.
Divisions
EAA EAM EAS EX MW NE NW SW WC
W/Errors 192 98 85 26 370 164 102 110 155
No Errors 643 705 495 93 5 223 201 452 906

Analyze Phase Questions
1. What should be the outcome(s) of the Analyze Phase?
2. Is the input data continuous or discrete?
3. Is the output data continuous or discrete?
4. Based on data types, what type of hypothesis test should you run?
5. Run the test your team identified.
6. What did your team discover with the hypothesis testing?
7. Based on your findings, what should be your next plan of action?

Analyze Phase Answers
1. The outcome of the Analyze Phase is to identify the root cause of the issues or errors.
2. Input data is discrete.
3. Output data is discrete.
4. Based on the data types, the Chi Square test is appropriate.
5. The Chi Square Test results from Excel are listed here:
Divisions
Actual EAA EAM EAS EX MW NE NW SW WC Total
W/Errors 192 98 85 26 370 164 102 110 155 1303
No Errors 643 705 495 93 5 223 201 452 906 3723
Total 835 803 580 119 372 387 303 565 1062 5026
Expected EAA EAM EAS EX MW NE NW SW WC Total

W/Errors 216 208 150 31 96 100 79 147 275 1303
No Errors 619 595 429 88 276 287 225 419 787 3723
Total 835 803 580 119 372 387 303 565 1062 5026
CHI Square 1.0525E- The defect percentage is NOT independent of

Test = 277< .05 division
=CHISQ.TEST(Actual Array, Expected Array)
Analyze Phase Answers
6. The team discovered that the divisions were a significant factor in the defect percentage.
7. Based on the findings, the team should explore why the divisions are not the same in defect
frequency. Also, the team should statistically test other theories to find what is causing the
billing defects.
Project Update: Additional Factors
The team decided to further investigate the situation and discovered additional contributing factors as
noted:
• Vendor had inconsistent definition of serial number
• Your company had inconsistent definition of serial number
• Input process is manual
• Lag in receiving data
The team identified the significant X’s . Upon completing the Tollgate Review Meeting with the Champion,
you are allowed to proceed with the Improve Phase.
Design of Experiments
Learning Objectives
Explain the concept of Design of Experiments (DOE)
Compare DOE with regression analysis
Identify the meaning of the basic terms used when

conducting experiments
Explain the effects of DOE error on repetition, replication,

randomization, and blocking
Introduction
The problem
Pre-ground coffee?
Milk?
Added flavors?
Temperature?
Serving size?
JAVA HOUSE COFFEE

Introduction
The solution
Freshly ground
coffee
115 ml milk
5 ml flavoring
60–65⁰C
Serving size 120 ml
JAVA HOUSE COFFEE

Design of Experiments (DOE)
Input variables Process Output variable
Uncontrollable input
variables
Is a one-stop method for analyzing all influencing factors simultaneously
Used when known sources of variation have been eliminated but process is
still not capable; if process is capable then DOE may not be required
DOE Identifies which variables individually affect key measures
Determines variable combinations or interactions that impact capability
Provides mathematical model to predict and optimize the response or process

output under recommended settings
Is preferred over One Factor at a Time (OFAT) experiments because it allows

for accelerated learning and is less time-consuming
Regression Analysis
Regression analysis generates a line on a scatter plot that quantifies the relationship between X and
Y to understand variation impact.
High percentage of variability in • Predict future values of Y given X and X given Y

Changes in X
Y (R2> 70%)
• Regress Y on one or more Xs simultaneously
DOE vs. Regression Analysis
DOE Regression
• Determines cause and effect • Uncovers relationships
• Tries bold or creative solutions • Uses existing data
• Clears results on the impact variable • Results left open to interpretation
• Measures impact on variability • Cannot measure variability impact
• Provides reliable information on interactions • Provides risky information on interactions
• Requires leadership support and investment • Does not require leadership support
Basic Terms
Response
Factors
Levels
Interactions
Treatment
Trial
Experimental unit
Basic Terms
Response
Factors
• Dependent variables or outcomes of an experimental treatment that
Levels varies as changes are made to factors
Interactions
Examples:
Treatment
Product strength, average hold time, sales, response time
Trial
Experimental unit
Basic Terms
Response
Factors
• Independent or input variables that are changed during an experiment
Levels to validate their impact on the output
• Can be qualitative and/or quantitative
Interactions
Treatment Examples:
Machine, temperature, procedural change, price
Trial
Experimental unit
Basic Terms
Response Objective: To achieve uniform dimensions for a part at a particular target

value
Factors
Inputs (X) Process Output (Y)
Levels
Interactions Cycle time

Mold temperature
Holding pressure Molding Part hardness
Treatment Holding time
Material type
Trial
Experimental unit Factors Response

Basic Terms
Response
Factors • Settings or conditions of the factors that are tested during the
experiment
Levels • Two levels recommended per factor
• Level 1 is normally coded as “-” and could represent status quo
Interactions • Level 2 is normally coded as “+” and could represent the change
tested
Treatment
Trial Note: The difference between level 1 and level 2 settings should be
significant to detect impact.
Experimental unit
Basic Terms
Response DOE conducted on two factors at two levels to determine the impact
related to plastic part hardness
Factors
Levels Level
Factors
- +
Interactions
Quantitative factor Mold temperature 700° 900°
Treatment
Trial Qualitative factor Plastic type Filler No filler
Experimental unit
Basic Terms
Response
Factors
• When the combination of two factors creates a result that is different

Levels from the result produced by the individual factors
Interactions
Examples:
Treatment Baking time and temperature
Trial
Experimental unit
Basic Terms
Response
Factors
Levels • A unique set of factors at specific levels whose effect on the response
variable is of interest
Interactions
Examples:
Molding temperature at high setting and baking time at low setting
Treatment
Trial
Experimental unit
Basic Terms
Response
Factors
Levels
• An experimental run for a specific treatment
Interactions
Treatment
Trial
Experimental unit
Basic Terms
Response
Factors
Levels
Interactions • Quantity of material to which one trial of a single treatment is applied

to create a response
Treatment
Trial
Experimental unit
DOE Error
Error is variation in experimental units that have been exposed to the same treatment.
Examples:
Humidity | Season | Geographic location | Shift
Repetition and Replication
Repetition Replication
The entire experiment is

During a treatment setup, several
repeated with a change in the
samples are run without
setting of experimental
changing the setting.
conditions between trials.
This shows short-term variability. This shows long-term variability.
Repetition and replication provide an estimate of experimental error and help determine the
statistical significance of the differences in readings.
Error and Randomization and Blocking
• Running the trial without any order
• The use of randomization helps • Setting the DOE so that controllable

with: noise factors are incorporated into the
• Noise factors that are experiment or held at a constant level
completely random and throughout
uncontrollable
• Avoiding time-related changes,
uncontrollable variables, and
tool wear
• Eliminating bias in expert
opinions
Randomization Blocking
Full Factorial Experiment
● Contains all combinations of all levels of all

factors
● Ensures no possible treatment combinations get

Full factorial experimental design
omitted
● Is preferred over other designs

Factor B: Factor A:
EXAMPLE Oven Time (X2) Draw Temperature (X1)
700 °F 900 °F
Y1 Y5
30 minutes
Y2 Y6
Y3 Y7
60 minutes
Y4 Y8 The tables depict a
two-way heat
treatment experiment,
Factor A = Temp: Low (-) 700 ⁰F; High (+) 900 ⁰F where Y is the Part
Responses
Factor B = Time: Low (-) 30 minutes; High (+) 60 minutes hardness.
Trial DOE Order A B AB 1 2
1 3 - - + Y1 Y2
2 1 + - - Y3 Y4
3 4 - + - Y5 Y6
4 2 + + + Y7 Y8
Main Effect is the average response change going from one setting to the other.
Factor A:
Factor B:
Draw Temperature An analysis of the response helps in understanding how:
Oven Time (X2)
(X1)
700° 900°
A change in A change in oven time Interaction between
temperature at which creates a difference in temperature and time
Y1 Y5 the average part affects the average part
30 minutes the material is drawn
Y2 Y6 hardness hardness
creates a difference in
Y3 Y7 the average part
60 minutes hardness
Y4 Y8
Factor B: Factor A:
Oven Time Draw Temperature
A1 = 700° A2 = 900°
B1 = 30 90 84
minutes 87 87
B2 = 60 95 79
minutes 92 78
Results: Results:
The table depicts a two-way heat Changing the draw temperature seems to Changing the oven time seems to
treatment experiment. change the average hardness have no major change in the average
hardness
95
Part Hardness
Factor B: Factor A:
Oven Time Draw Temperature
90 700
A1 = 700° A2 = 900°
85
B1 = 30 90 84
minutes 87 87
900
95 79 80
B2 = 60
minutes 92 78
30 min. 60 min.
A1 A2
Results: The interaction plot shows that low
B1 88.5 85.5 temperature and high oven time should be selected
90+87 to achieve the highest desired output of hardness.
A,B, = = 88.5
B2 93.5 78.5 The parallel lines indicate the output if no
2
interactions occur between the main effects.
The mean of the factors
28
Runs
The number of experiments in a DOE setting is known as Runs.
Full Factorial Runs = Levels^factors
The number of runs in a:
Half Fractional Factorial Runs = Levels^(factors-1)

Runs
For Half Fractional factorial experiments, the number of runs is levels to the power of factors minus 1.
Full factorial experiment without replication on 5 factors and 2 levels: 25 = 32

Full factorial experiment with 1 replication on 5 factors and 2 levels: 32 + 32 = 64
Half fractional factorial experiment without replication on 5 factors 25-1 = 16
and 2 levels:
Half fractional factorial experiment with 1 replication on 5 factors 16 + 16 = 32
and 2 levels:
Fractional factorial experiments lose complete information on interactions.

Fun Facts
DID YOU
KNOW…?
The use of DOE is growing in the service

sector.
Key Takeaways
DOE is a structured method that tests input variables and their

impact on the output variable.
Error is variation in experimental units that have been

exposed to the same treatment.
Repetition and replication provide an estimate of

experimental error and help determine the statistical
significance of the differences in readings
Randomization and Blocking can impact the effects of error.
Full factorial experimental design contains all

combinations of all levels of all factors.
The number of experiments in a DOE setting is known as Runs.

Knowledge Check
Knowledge
Check A chef wants to change the recipe for a fondue to improve its taste. He is considering
1 different cheeses and will run 8 experiments. In this scenario, what is the factor?
A. Experiments
B. Fondue
C. Different cheeses
D. Taste
Knowledge
1 different cheeses and will run 8 experiments. In this scenario, what is the factor?
A. Experiments
B. Fondue
D. Taste
The factor is the independent variable that is changed and in this case it will be the different cheeses.
Knowledge
2 different cheeses and will run 8 experiments. In this scenario, what is the response?
A. Experiments
B. Fondue
D. Taste
Knowledge
2 different cheeses and will run 8 experiments. In this scenario, what is the response?
A. Experiments
B. Fondue
D. Taste
The response is the dependent variable that is impacted by changing factors and in this case it will be the taste.
Knowledge
Check For a full factorial experiment with 3 factors at two levels that are replicated twice,
3 how are trials expected?
A. 24
B. 8
C. 16
D. 9
Knowledge
Check For a full factorial experiment with 3 factors at two levels that are replicated twice,
3 how are trials expected?
A. 24
B. 8
C. 16
D. 9
The equation is levels to the power of factors. 2 to the power of 3 is 8 and with two replications would be 8 + 8 + 8 = 24.
Root Cause Analysis
Learning Objectives
Explain the concept of Root Cause Analysis (RCA)
Create a Cause and Effect Diagram
Interpret a Cause and Effect Matrix
Apply the 5 Whys technique for a problem and find a possible

solution
Introduction
Business does not meet

productivity goal
WHY?
Introduction
Business does not meet

Symptoms
productivity goal
Not using the new

Problem
system
Integration issues Training
Root causes
Root Cause Analysis
Root Cause Analysis (RCA)
Define
Control Measure
Improve Analyze
Evaluate Optimize Validate

Unknown sources of variation
RCA Optimize the process
Implement corrective action

RCA Tools
Cause and Effect Diagram Cause and Effect Matrix 5 Whys Technique
Cause
WHY?
Effect
A root cause is a factor that caused the defect or issue. Removing that factor will
prevent the re-occurrence of the issue.
Cause and Effect Diagram
RCA Tools
Cause
WHY?
Effect
The Cause and Effect diagram is used to find the root cause and the potential solutions to a problem.
It is also known as the Fishbone diagram or Ishikawa diagram.
CAUSE EFFECT
CAUSE EFFECT
Material Management Method
Problem
Machine Measurement Man
Determine the main Draw a Cause and

Write the causes on the
classification or Effect diagram with the Brainstorm possible
diagram under the
headings to group the problem at the point of causes of the problem
classifications chosen
causes the central axis line
Cause and Effect diagram for solder defects on a reflow soldering line
Training
Materials Manpower
Skill
Type of Solder Paste Operator
Knowledge
Size
Self-sufficiency
Components Shape
Shifts
Thickness Schedule
Components Packaging Weekends Reflow
Defect
Full reflow
Types of Screen
Batch size Tools
Technology Feeder
Component density
Speed
Fine pitch Oven
Preventive Maintenance Temperature
Methods Machinery
RCA Tools
Cause
WHY?
Effect
Process Output Variables
A B C D E
Prioritization Number 4 1 7 11 5 Results %
1 3 4 7 117 33
2 8 5 3 4 96 27
Process Input
3 6 2 46 13
Variables
4 7 5 32 9
5 3 4 65 18
Totals 356 100

Rating of Importance to
Customer
TEMPLATE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Process Inputs
0
1 0
2 0
3 0
4 0
5 0
6 0
7 0
8 0
9 0
10 0
11 0
12 0
13 0
14 0
15 0
16 0
17 0
18 0
19 0
20 0
0
0
Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
The 5 Whys Technique
RCA Tools
Cause
WHY?
Effect
Identify theSTEPS
PROCESS problem and the problem statement
Arrange for a team brainstorming session
Explain the purpose
Analyze the problem and brainstorm backwards
Ask “Why?” for the answers obtained

???
??
If a problem occurs, it is usually due to the process and not because of a person or team.
JAVA
HOUSE
COFFEE
Delivery Van
Erroneous product deliveries

EXAMPLE
What is happening? PROBLEM: Delivery of parcels to incorrect addresses
Why is it happening? 1. Incomplete addresses given on the parcel

Why?
2. Complete addresses were not collected

from the customers Why?
3. The addresses were given to the operators

over phone
Why?
4. The operators were unable to gauge if the
addresses were incomplete
5. An official format for capturing delivery Why?

addresses from customers was unavailable
Corrective Action
A template for capturing customer delivery information was created.

Points to Remember
Focus on process issues

and not people
WHY?
WHY?
WHY?
WHY?
WHY? Stay within your team’s

control to change
Key Takeaways
A root cause is a factor that caused the defect or issue and

removing that factor will prevent the re-occurrence of the issue.
The Cause and Effect diagram is used to find the root cause and
the potential solutions to a problem.
The Cause and Effect matrix consists of key process input and
output variables to determine which input variables have the
greatest effect on the output variables.
The 5 Whys technique involves asking iterative questions to find

the root cause of the problem.
Knowledge Check
Knowledge
Check
Which of the following is NOT one of the classical cause and effect diagram categories?
1
A. Materials
B. Maintenance
C. Methods
D. Machine
Knowledge
Check
Which of the following is NOT one of the classical cause and effect diagram categories?
1
A. Materials
B. Maintenance
C. Methods
D. Machine
Maintenance is considered as an additional category in a classic fishbone diagram. The classical categories are Man,
Material, Method, and Machine.
Knowledge
Check We have an input factor with impact ratings of 3 and 9 on output variables A and B,
respectively. The output variable A has a prioritization value 5 and output B has a
2 prioritization value of 10. What is the score for our input factor?
A. 42
B. 37
C. 105
D. 90
Knowledge
Check We have an input factor with impact ratings of 3 and 9 on output variables A and B,
respectively. The output variable A has a prioritization value 5 and output B has a
2 prioritization value of 10. What is the score for our input factor?
A. 42
B. 37
C. 105
D. 90
The score is 3*5 + 9*10 = 105

Lean Tools
Learning Objectives
Identify Lean techniques that help in waste elimination
Explain the benefits of cycle time reduction
Differentiate between Kaizen and Kaizen Blitz

Do You Know
Q Now that we have identified the causes that impact us the

most, we need to implement solutions or countermeasures.
What are the types of solutions that can be implemented?
A Lean tools can be implemented for solutions or

countermeasures.
Tools to Improve Processes
Kaizen
Poka Yoke
5S
JIT
Kanban
Jidoka
Takt Time
Heijunka
All incremental changes routinely applied and sustained over a

Kaizen long period of time result in significant improvement.
Poka Yoke
5S
JIT
Kanban
Jidoka
Takt Time
Heijunka
Kaizen
It is good to do it right the first time and even better to

Poka Yoke make it impossible to do it wrong the first time.
5S
JIT
Kanban
Jidoka
Takt Time
Heijunka
Kaizen
Poka Yoke
The five steps to get an organized work area are Sort,

5S
Set in Order, Shine, Standardize, and Sustain.
JIT
Kanban
Jidoka
Takt Time
Heijunka
Kaizen
Poka Yoke
5S
Producing the required units, in the required quantity,

JIT
at the right time, and with the required quality.
Kanban
Jidoka
Takt Time
Heijunka
Kaizen
Poka Yoke
5S
JIT
Utilizing visual display cards to signal the movement of

Kanban material between the steps of a product process.
Jidoka
Takt Time
Heijunka
Kaizen
Poka Yoke
5S
JIT
Kanban
Implementing supervisory function in production line and

Jidoka stopping the process as soon as a defect is encountered.
Takt Time
Heijunka
Kaizen
Poka Yoke
5S
JIT
Kanban
Jidoka
The maximum time in which the customers’

Takt Time demands need to be met.
Heijunka
Kaizen
Poka Yoke
5S
JIT
Kanban
Jidoka
Takt Time
Reducing waste that occurs due to

Heijunka
fluctuation in customer demand.
Cycle Time Reduction
Cycle time reduction is the reduction in the time taken to complete a process.
Increases productivity and throughput
Releases resources early
Reduces internal and external waste
Simplifies the operational process
Decreases product damage

Old Process Improved Process
In In
Process 1
Process 1 Process 2
Operator 1
Lean Techniques
Process 4 Operator 1 Operator 2
Operator 3
Process 5 Operator 4
Process 5 Process 4 Process 3
Operator 5
out Process 3 Process 2

Operator 3 Operator 2 out
Kaizen and Kaizen Blitz
Kaizen is a continuous improvement Kaizen Blitz is known as Kaizen event or Kaizen workshop.
method to improve the functions of an If the event is tightly defined and the scope is evident for
organization. implementation, processes can be easily changed and
improved.
The improvements could be in: Teams improve processes through structured workshops.
• Process
• Productivity
• Quality
• Technology
• Safety
Is a method Is a workshop or an event
Brings in incremental change Brings rapid solutions when required
Plans, executes the event, decides a solution, and

Standardizes, measures, and compares the process follows it through
Is lead by the management and the team Is lead by the management
Relatively delays the process of decision making Accelerates the process of decision making
Is a continuous improvement process Is a part of improving the process

Kaizen Kaizen Blitz
In Toyota, the production In Wood Infinity Private

cycle is resumed after Limited, scraps are eliminated,
the problem is identified work areas are reorganized,
and solved. and inventory is reduced.
Key Takeaways
The 8 Lean techniques are Kaizen, Poka Yoke, 5S, JIT, Kanban,
Jidoka, Takt time, and Heijunka.
Cycle time reduction refers to the reduction in the time taken to

complete a process.
Kaizen is a continuous improvement method to improve the

functions of an organization.
Kaizen Blitz is known as Kaizen event or Kaizen workshop.

If the event is tightly defined and the scope is evident for
implementation, processes can be easily changed and
improved.
Knowledge Check
Knowledge
Check Which Lean technique focuses on reducing waste caused by fluctuating customer
1 demand?
A. Jidoka
B. Heinjunka
C. 5S
D. Kanban
Knowledge
Check Which Lean technique focuses on reducing waste caused by fluctuating customer
1 demand?
A. Jidoka
B. Heinjunka
C. 5S
D. Kanban
Heinjunka is a Lean technique that focuses on reducing waste caused by fluctuating customer demand.
Knowledge
Check
Which of the following is true about Kaizen and Kaizen Blitz?
2
A. Both focus on continuous improvement
B. Both are led by management teams
C. Both are events or workshops
D. Both bring incremental change

Knowledge
Check
Which of the following is true about Kaizen and Kaizen Blitz?
2
A. Both focus on continuous improvement
B. Both are led by management teams
C. Both are events or workshops
D. Both bring incremental change
Kaizen and Kaizen events are different in many aspects but both focus on improving performance
Knowledge
Check
Which of the following Lean tools is focused on preventing defects from occurring?
3
A. JIT
B. Takt Time
C. 5S
D. Poka Yoke
Knowledge
Check
Which of the following Lean tools is focused on preventing defects from occurring?
3
A. JIT
B. Takt Time
C. 5S
D. Poka Yoke
Poka Yoke is a Lean technique that focuses on preventing errors from occurring in a process.
Selecting a Solution
Learning Objectives
Use Pugh Analysis to fix the root cause of an issue
Explain the benefits of a Solution Prioritization Matrix
Explain SCAMPER technique
Differentiate between positive and negative brainstorming
Evaluate the cost-benefit analysis of a solution
Screen solution through piloting

Scenario
Efficient
? Risky
Best Solution
Carpenter
Tools for Identifying the Best Solution
Best Solution
Root Causes of
Issues
Multiple
Solutions
Other Business
Needs
Best
Solution
Pugh Analysis
Is a solution to fix a root cause or issue
Is a decision-making matrix used for comparing and

evaluating multiple solution options in relation to a
baseline option
Is used by selecting the most important criteria

needed for taking the decision, and comparing the
alternatives
Is used when only one solution is possible or when a

hybrid of many potential solutions are needed.
Pugh Analysis
Solution Options
Criteria Baseline Weight A B C D
1 0 2 +1 -1 0 +1
2 0 4 0 -1 0 +1
3 0 3 +1 +1 +1 0
4 0 5 -1 0 0 +1
Score 0 -3 3 11
Pugh Analysis
Solution Options
1 0 2 +1 -1 0 +1
2 0 4 0 -1 0 +1
3 0 3 +1 +1 +1 0
4 0 5 -1 0 0 +1
Score 0 -3 3 11
The sum product of the values and criteria weight =

2*(+1) + 4*(0) + 3*(+1) + 5*(-1)
Pugh Analysis
Solution Options
1 0 2 +1 -1 0 +1
2 0 4 0 -1 0 +1
3 0 3 +1 +1 +1 0
4 0 5 -1 0 0 +1
Score 0 -3 3 11
The sum product of the values and criteria weight

= 2*(-1) + 4*(-1) + 3*(+1) + 5*(0)
Pugh Analysis
Solution Options
1 0 2 +1 -1 0 +1
2 0 4 0 -1 0 +1
3 0 3 +1 +1 +1 0
4 0 5 -1 0 0 +1
Score 0 -3 3 11

2*(0) + 4*(0) + 3*(+1) + 5*(0)
Pugh Analysis
Solution Options
1 0 2 +1 -1 0 +1
2 0 4 0 -1 0 +1
3 0 3 +1 +1 +1 0
4 0 5 -1 0 0 +1
Score 0 -3 3 11

2*(+1) + 4*(+1) + 3*(0) + 5*(+1)
Solution Prioritization Matrix
SOLUTION PRIORITIZATION MATRIX
http://www.foundasoft.com/index.php?option=com_content&view=article&id=163%3A403criteria-solution&catid=37%3Afoundalss-articles&Itemid=1
SCAMPER
SCAMPER is a brainstorming technique that can be used to find a solution.
Substitute Adapt Put to Another Use Reverse

What other product Can you use your Will this product What will happen
or process can you product in another behave differently in if you reverse
use? context? another setting? this process ?
S C A M P E R
Combine Modify Eliminate

What can you combine What can you How can you make the
to maximize the use of emphasize or highlight product smaller, faster,
this product? to create more value? lighter, or more fun?
https://www.mindtools.com/pages/article/newCT_02.htm
Positive Brainstorming and Negative Brainstorming
Positive brainstorming Negative brainstorming
Good solutions to problems Bad solutions to problems
Transform
Good solutions
http://projectofhow.com/methods/negative-brainstorming/
Negative Brainstorming
How can you improve the customer experience in the coffee shop?
Transformed
Bad Solution Solution
Ensuring that you

attend to every
Ignoring patrons’ customer request
requests for with delight
coffee refills
Cost-Benefit Analysis
Every solution should be evaluated on the cost to implement it and the benefits realized from it.
Benefit
to Cost
Ratio
Matrices
Internal Net
Rate of Present
Return Value
Every solution should be evaluated on the cost to implement and the benefits realized.
Solution Cost Project B/C

Benefit to Benefit Ratio
Cost Ratio
A $10,000 $20,000 2
B/C Ratio
B $25,000 $100,000 4
C $5,000 $35,000 7
Matrices
Internal Net
Rate of Present
Return Value
Net
If Cost = $20k, Discount Rate = 10%,
Present Benefits for years 1-3 are $5K, $5K, $11K
Value respectively
(NPV)
Profitability = NPV(Net Benefits) - Initial
Cost =
“=NPV(0.10,5000,5000,11000)” - $20,000
Matrices = $16,942 - $20,000 = -$3,058
Internal Benefit
Rate of to Cost
Return Ratio
Internal “=IRR(-20000,5000,5000,11000)” = 2%
Rate of
Return
If less than cost of capital, solution is not
(IRR)
implemented due to benefit constraints.
Matrices
Benefit Net
to Cost Present
Ratio Value
Solutions Screening and Piloting
Evaluated using cost and

benefit analysis Test prioritized from
Theoretical brainstorming
exercises
Solutions
Screened for potential success

with piloting
Piloting
Piloting is deploying the solution or change in small teams or groups.
Deploy solution to
10% of entire 40% of entire Remaining 50% of

scope scope entire scope
Pilot Validation
At each phase in the pilot:
paired t-test
Post-improvement Pre-improvement
data For a week data
The paired-t test A month after full

should check implementation
Has output Is the change
Has X Yes Yes
variable Commence next effective?
changed
performance piloting phase Revalidate with a
significantly?
changed? paired t test.
Key Takeaways
Pugh Analysis is used to evaluate multiple options against each other

in relation to a baseline option.
In Solution Prioritization Matrix, each solution is weighted on its own

merit.
The SCAMPER tool helps by asking questions about existing

products in the different SCAMPER categories.
Positive and Negative Brainstorming are useful methods to generate

solutions to problems.
Cost and Benefit Analysis uses three matrices–Benefit to Cost

Ratio, Net Present Value, and Internal Rate of Return.
Solutions need to be screened for potential success with piloting.

Knowledge Check
Knowledge
Check
Which of the following is NOT a solution selection tool?
1
A. Pugh Matrix
B. Cause and Effect Matrix
C. Solution Prioritization Matrix
D. SCAMPER
Knowledge
Check
Which of the following is NOT a solution selection tool?
1
A. Pugh Matrix
B. Cause and Effect Matrix
C. Solution Prioritization Matrix
D. SCAMPER
The Cause and Effect Matrix is used to help determine relationships between X and Y variables and also identifies root
causes.
Knowledge
Check
Which project should be selected?
2
A. Cost = 10,000; Benefit = 20,000
B. Cost = 30,000; Benefit = 62,000
C. Cost = 15,000; Benefit = 40,000
D. Cost = 20,000; Benefit = 15,000

Knowledge
Check
Which project should be selected?
2
A. Cost = 10,000; Benefit = 20,000
B. Cost = 30,000; Benefit = 62,000
C. Cost = 15,000; Benefit = 40,000
D. Cost = 20,000; Benefit = 15,000
B/C ratios for each in order is 2, 2, 2.7, 0.75. Option C has the largest ratio.
Lean Six Sigma Activities and Tools: Improve
Activities
❑ Review Project Charter ❑ Process Map Flow ❑ Identify Root Causes ❑ Develop Potential Solutions ❑ Develop SOP’s, Training
❑ Validate High-Level Value ❑ Identify Key Input, Process ❑ Reduce List of Potential ❑ Evaluate, Select, and Plan & Process Controls
& Voice of the Business ❑ Validate Measurement ❑ Estimate Impact of Root ❑ Develop and Implement ❑ Confirm Attainment of
❑ Validate Problem Statement System Causes on Key Outputs Pilot Solution Project Goals
❑ Develop Project Schedule ❑ Complete Improve Tollgate ❑ Transition Project to
❑ Complete Define Tollgate Process Owner
❑ SIPOC Map ❑ Statistical Sampling ❑ Hypothesis Tests ❑ Design of Experiments Procedures (SOP’s)
❑ Stakeholder Analysis Analysis (MSA) Regression ❑ Solution Selection Matrix ❑ Visual Process Control
❑ Communication Plan ❑ Gage R&R ❑ ANOVA ❑ Piloting Tools
❑ Effective Meeting Tools ❑ Control Charts ❑ Components of ❑ Pugh Matrix ❑ Statistical Process
❑ Time Lines, Milestones, ❑ Histograms Variation ❑ Pull System Controls (SPC)
and Gantt Charting ❑ Normality Test ❑ Visual Workplace
❑ Pareto Analysis ❑ Process Capability ❑ Total Productive
Analysis Maintenance
❑ Metrics
Tools
Improve Tollgate Questions
❑ What techniques were used to generate ideas for potential solutions?

❑ What narrowing and screening techniques were used to further develop and qualify potential solutions?
❑ What evaluation criteria were used to select a recommended solution?
❑ Do proposed solutions address all the identified root causes, at least the most critical?
❑ Were the solutions verified with the Project Sponsor and Stakeholders? Has an approval been received to implement?
❑ Was a pilot run to test the solution? What was learned? What modifications made?
❑ Has the team seen evidence that the root causes of the initial problems have been addressed during the pilot? What are the expected
benefits?
❑ Has the team considered potential problems and unintended consequences (FMEA) of the solution and developed preventive and
contingency actions to address them?
❑ Has the proposed solution been documented, including process participants, job descriptions and if applicable, their estimated time
commitment to support the process?
❑ Has the team developed an implementation plan? What is the status?
❑ Have changes been communicated to all the appropriate people?
❑ Have ‘learning's’ to-date required modification of the Project Charter? If so, have these changes been approved by the Project Sponsor and
the Key Stakeholders?
❑ Have any new risks to project success been identified and added to the Risk Mitigation?
Project: Improve Phase
Improve Phase
Analyze, Improve, and Control) process, different aspects of the case study will be presented to you. You
will be given background information, instructions, data sets, project updates, and all necessary
Note:
single problem.
Project Update: Outcome Summary
Through hypothesis testing and additional analysis, the project team was able to identify the source of the
defects in the forklift fulfillment process. The significant contributors identified to the problem were:
• Vendor had inconsistent definition of serial number
• Your company had inconsistent definition of serial number
• Input process is manual
• Lag in receiving data
Project Update
Quick Wins and Mistake Proofing
The team is ready to develop a strategy to improve. Some simple process changes could have a significant
impact on the process performance.
Project Update
Potential Improvements
The team came up with a list of potential improvements to the forklift fulfillment process that could
facilitate accurate forklift tracking. The team worked with vendors to ensure that each forklift had a
unique serial number or identifier. Other improvements include:
• The elimination of time lag between vendors’ records and the company records
• Creating a monthly expired forklift report to flag forklifts that the company is still being charged for
although the lease has expired
• Implementing an audit process to find forklifts with non-matching serial numbers
• Changing the SOP to short-pay invoices for non-matching or expired forklifts
Project Update
Verify Improvements
A key component of the Improve phase is the ability of the team to verify improvement success. After
solutions are implemented for several weeks, your team collects data from the latest report. There were
5001 invoices and a total of 312 defects based on the team’s defect definition.
Improve Phase Questions
1. What should be the outcomes of the Improve phase?

2. Based on the team’s findings in the Analyze phase, what ideas for quick hit improvements or poke-
yoke can the team come up with?
3. What type of graphical summaries can the team create to display the improvement impact?
4. What is the process sigma level on the new project data?
5. How does the new process performance compare to the baseline performance?
Improve Phase Answers
1. The Improve phase should result in implemented solutions that have effectively improved performance.
2. A couple of quick wins include process automation and a more standardized serial number creation
system.
3. To show process improvements in a graphical display, Control Charts, Trend Charts, and Box and
Whiskers Plots could be used.
4. See improved Sigma Level calculation in the table below.
5. The new process Sigma Level of 3.035 shows an improvement from the previous 2.146 Sigma Level.

Determine number of defect opportunities per
unit O= 1
0.0623875
Calculate defects per opportunity DPO = D / (N X O)= 2
Sigma Level from Sigma conversion table process sigma = 3.035
Statistical Process Control
Learning Objectives
Explain the basics of Statistical Process Control
Choose appropriate traditional control charts
Differentiate between CUSUM and EWMA Charts

Statistical Process Control (SPC) Basics
Statistical Process Control Basics
Walter A Shewhart developed statistical process control in 1924.
SPC
Visual
Monitoring
Inputs Process and its Parameters Outputs
Statistical Statistical
measures measures
Benefits of SPC Basics
Special causes of variability
SPC separates
Common causes of variability
recognizes Unexpected changes in the process

output
identifies stable
zones Variables with unknown specification
limits
useful external
information Continuous process improvement and
online monitoring
The concept of Process Control can be used in the Measure Phase, when we check for
data stability.
Features of Common Cause Variation
➢ Small variations in raw materials
➢ Variations due to manual interventions in manual

processes
➢ Responses from machines or systems, etc.
Aware of
common cause Frequency Predictability
variation
Huge investment and time to identify

Repetitive
and remove them

Part of the Process
Within tolerance or specification limits
➢ Machine or system crash
➢ Delay in supply of raw materials
➢ Huge variations in the raw materials, etc.
Frequency Predictability
Less investment and time to
Part of the Process

Non-repetitive identify and remove them

Variation affects the flow of the process due to which the
defects appear
Subgroup or Sample → A collection of units

that are produced or created under the same
set of conditions
Rational Subgroup
Represents the process at a particular point in time
Measurements must be taken within a short span of
time but should also be independent of each other
Approach 1 Approach 2
Random for all

Every other group of process output over
Sample Sample
10 consecutive units the sampling interval
➢ Used to make decisions about the acceptance of a

➢ Used to detect process shifts product
➢ A process shift happens over time and is reflected in ➢ Detecting the shifts of the output variable to an out
the variation of the output variables of control state and back into an in-control state
between samples
Example: Example:
Process 10 consecutive units Process 100 parts per hour
sample sample
every other group 5 randomly selected parts every hour

Rational subgrouping refers to the selection of subgroups or samples in a way that if special
causes are present, chance for differences between subgroups will be maximized and chance
for differences due to special causes within a subgroup will be minimized.
The interval bars represent the within-subgroup variation
The red line that connects the averages of the consecutive subgroups represents the between-
subgroup variation
http://support.minitab.com/en-us/minitab/17/topic-library/quality-tools/control-charts/data/within-subgroup-and-between-subgroup-variation/
Walter Shewhart, 1920s
Characteristics of control charts are as follows:

❑ Similar to run or trend charts, with an addition of a control limit line and an average or center
line
❑ Can be used with discrete or continuous data
❑ Control limits (UCL and LCL) are typically set at approximately three standard deviations from
the center line
❑ Specification limits (USL and LSL) normally do not appear on them
Most of the points fall

Control Charts Tracking Process Statistics Process is in
within the bounds of the
over time control
control limits
Detecting the presence of Points do not display any

Special Causes non-random patterns
A process is in control when most of the points fall within the bounds of the
control limits and the points do not display any non-random patterns.
Uses control σmean from the data’s grand

Standard Control
Chart limits average (ന
X, average of the
sample averages, or μ).
The probability of an out-of-control point when the

process has not changed → 0.27%
2σ the chance of type I or alpha error
4σ the chance of type II or beta error
Walter Shewhart had set 3σ limits on control charts with the

belief that when the process goes beyond these limits, it needs
correction.
An Out-Of-Control (OOC) condition is indicated if one of the following is true:
p(f) = 0.27% p(f) = (0.5)8 = 0.39%
1 point is 8 consecutive
outside the points are
Control Limits above the
(either above Center Line (CL)
UCL or below or consecutively
LCL) below the CL
2 out of 3 6 to 8 points
points are are
within 1 σmean of consecutively
either the UCL increasing or
or the LCL decreasing
3!
p(f) = (2!1!)(0.023)2(0.477) = 0.08% for p(f) = (0.5)6 or (0.5)8 =
1.6% to 0.39%
one side
Tips
Identify the purpose for data collection and try to determine what kind
of data may be needed for measurement
If you don’t adapt data to filter

Identify measures that are any noise factors from the
Some Tips process, the control chart will
used daily
show you wrong results
Traditional Control Charts
Choosing an Appropriate Control Chart
I-MR Chart
Individual
Data Points (Depicts the variability of individual
characteristics over time)
(Pulling one
sample at
Continuous fixed
data frequency)
sampling X and R Chart
ഥ
Subgroups (If n is between 2 and 9)
(Taking
X and s Chart
ഥ
periodic group
data) (When standard deviation is calculated
and n≥10)
Choosing an Appropriate Control Chart
np Chart
Constant Subgroup Size
(Number of Units Rejected)
Defectives
p Chart
Varying Subgroup Size (Percentage of Units
Rejected)
Discrete
Data
c Chart
Constant Subgroup Size
(Number of Defects)
Defects
u Chart
Varying Subgroup Size (Average Number of
Defects per Opportunity)
ഥ Chart Principles
𝐗
X → average of each subgroup of data

ഥ
X chart → the subgroup average data will be plotted

ഥ
X chart
ഥ s chart X and s chart
ഥ
R chart X and R chart

ഥ
𝐗

ഥ

ഥ
X chart
ഥ

ഥ
❑ It is the plot of the means of the

subgrouped data
❑ It shows inter-subgroup or between-

subgroup variation
❑ The control limits are calculated based on

mean of means, range or standard
deviation, and other factors
𝐗

ഥ

ഥ
X chart
ഥ

ഥ
❑ It is the plot of the value of subgroup range
❑ The R chart shows intra subgroup
❑ One of the most sensitive charts to track

and identify special causes of variation
❑ Can be plotted with any type of data

𝐗

ഥ

ഥ
X chart
ഥ

ഥ
❑ It is the plot of the standard deviation of

the subgroup range
❑ One of the most sensitive charts to track

and identify special causes of variation

𝐗

ഥ

ഥ
X chart
ഥ

ഥ
❑ It is of the same subgrouped data as the

X and s chart
ഥ
❑ One chart is the X bar and the other is the R

chart

𝐗

ഥ

ഥ
X chart
ഥ

ഥ
❑ It is of the same subgrouped data as the

X and R chart
ഥ
❑ One chart is the X bar and the other is the s

chart

Control Limit Formulas
Control
Limit
Formulas
Control
Chart
Constants
UCL and LCL in ഥ
X and R Chart
UCLXҧ = ന
X + A2 Rഥ
LCLXҧ = ന
X - A2 R
ഥ
UCLR = D4 R
ഥ
LCLR = D3 R
ഥ
X → grand average and R

ന ഥ → average of the range.
A2, D3, and D4 are values from the control chart table
UCL and LCL in ഥ
X and s Chart
UCL = ന
X + A3 Sത
LCL = ന
X - A3 Sത
UCL = B4 Sത
LCL = B3 Sത
❑ S → Standard deviation of each subgroup data

❑ The data is divided into subgroups.
❑ Standard deviation is calculated for each subgroup.
Values for A3, B3, and B4 are constant and are taken from the control chart
table. ഥ
X and s charts are used to track process variation where the
subgroup sample size ≥ 9.
X and R and Subgroup Data
ഥ
Q
Establish 1 σ process limits for the data set shown. Use the table of
control chart constants for values of A2, D3, and D4.
X Chart
ഥ
Table for control chart constants
n A2 D3 D4
2 1.88 0 3.27
3 1.02 0 2.57
4 0.73 0 2.28
5 0.58 0 2.11
6 0.48 0 2.00
X and R and Subgroup Data
ഥ
A ● In ഥ
X and R chart, point SG 6 is the point of change in the process from
below the center line to above the center.
● No points are outside control limits in the given process; examine points 6
and 7 on ഥX chart, and points 10 and 11 on the R chart for rule #4 (If 2 out of
3 points are within 1 σmean of either the UCL or the LCL).
X and s and Subgroup Data
ഥ
Q
The data in subgroups with 10 samples in each subgroup is given here along with
the ഥ
X chart. Using this data, find out if the process is in control.
Table for control chart constants X Chart

ഥ
n A3 B3 B4
2 2.659 0 3.267
3 1.954 0 2.568
4 1.628 0 2.266
5 1.427 0 2.089
6 1.287 0.030 1.970
7 1.182 0.118 1.882
8 1.099 0.185 1.815
9 1.032 0.239 1.761
10 0.975 0.284 1.716

X and s: Constructing Chart
ഥ
A
● The ഥ
X chart point SG 10 is the variation of the point from the mean.
● Also, points 4, 10, and 23 have more variation from the center. These points can be
analyzed further.
● The points are within the limits, and hence the process is in control.
I-MR Chart Principles
I-chart Plot of the individual

data points
I-MR Charts
MR-chart Plot of the moving

Used range of the previous
individuals
❑ When subgroup variation = 0 or no subgroups exist; and

❑ With data points from destructive testing or batch
processing, or summary data from a time period
I-MR Chart Principles
I-MR charts → sensitive to trends, cycles, patterns, and normality.
Control limits of the I-MR chart are calculated using a similar method as the ഥ
X and R chart.
I-MR and Individual Data: Example
Q
The QC department measures the strength of its milk cartons once in every
hour. Is the process in control?
● Since the data is individual data, the I-MR chart will be used here.
● This is an example of a destructive test.
M
I
L
K
Strength of the milk carton

I-MR and Individual Data: Constructing Chart
A
● Moving range is the absolute value of difference between the last two data points.
● In I-chart, point 16 is close to the upper limit (analysis required).
● No points are out of control in the process.
I-MR Chart: IT/ITES Example
Given is the data used to study the number of calls handled per hour in
call center operations. This data was studied using I-MR charts to check
 if the process is in control. The data, I-MR chart, and analysis are as
follows:
Call Center
Data: I-MR Chart:
Analysis of I-chart
❑ All points are closer
to mean values
❑ Process is well within
control
Analysis of MR-chart
❑ Few points are closer
to LCL.
❑ No points are outside
of the control limits
Control Charts for Attribute Data
Based on sample size and data type (defects or defectives), the following types of
control charts can be selected:
np chart c chart p chart u chart
If the sample size is

If the sample size is consistent and the data If the sample size is If the sample size is
consistent and the data type available changes inconsistent and the inconsistent and the
type is defectives from defectives to defects data type is defectives data type is defects
Control limits may be constant, such as ഥ

X and R charts (for np and c
charts), or vary depending on sample size (for p and u charts.)
np Chart Principles
The np chart is used to measure the non-conforming proportions or number of defectives

within a standardized group size. Some of the principles of np chart are as follows:
The expectation is that the same proportion exists

in each group
The np chart follows binomial distribution
Large subgroups are required (50 minimum) for

this chart
Subgroup size must be constant
Control limits will be constant for an np chart

np Chart: Formulae
Important formulae of np chart are as follows:
D
● Proportion of p =
n
D
● np = n ∗ =D
n
● Control Limits = np ± 3√np (1−𝑝 ̅)

where, D = Defectives
np Charts and Uniform Subgroup Size
Q
The sourcing department at Java Coffee House Worldwide measures 125
purchase orders daily and records the number of entry errors in them.
The tabulated data is given here. Is the order entry process in control?
● Since the data has a constant subgroup size (orders processed) of

defectives, an np chart will be used.
● Assumption is that there is only one error per order possible.
Purchase Order
------
-----
Java House Coffee

u Chart: Constructing Chart
A ● In np chart, point 12 is beyond the control limit of three standard deviations.

Analysis must be done to find the reason and take corrective action if necessary.
● Hence, point 12 is out of control in the process.
p Chart Principles
The p chart is used to measure the non-conforming proportion or defectives.

Some of the principles of p chart are as follows:
The expectation is that the same proportion exists

in each group
The p chart follows binomial distribution
The subgroup size should at least be 50
Subgroup size need not be constant
Control limits may vary from subgroup to subgroup

based on the subgroup size.
p Chart: Formulae
Important formulae of p chart are as follows:
𝑝ҧ 1−𝑝ҧ
Control Limits = 𝑝ҧ ± 3
𝑛
Note: When n changes, control limit

also changes.
p Charts and Varying Subgroup Size
Q
The sourcing department in Java Coffee House Worldwide measures
the number of entry errors on a daily basis. The tabulated data is
presented here. Is the order entry process in control?
● Since the data has varying subgroup sizes (orders processed) of

defectives, a p chart will be used
Order Entry
----
----
----
Java House Coffee

p Charts and Varying Subgroup Size
A
● In a p chart, point 12 has gone beyond the limit of 3 sigma level. Analysis must be
done to find the reason and take corrective action if necessary.
● Hence, point 12 is out of control in this process.
c Chart Principles
To form a c chart, measure the number of occurrences of non-conforming

defects. Some of the principles of the c chart are as follows:
The c chart follows a Poisson distribution.

The sample size is fixed or the area of opportunity
is constant
Used to identify attribute data for the sample
Each count is a subgroup of samples
The control limits will be constant
! Control Limits = 𝑐ҧ ± 3√𝑐ҧ

c Chart Principles
Q
Final inspection grades the tinted glass on the number of white
specs. The product is priced by grade. White specs are defects, not
defectives, and are measured over a constant sample area; so c chart
will be used. Is the process in control?
● Since the data is for defects, c chart will be used.
Defects
Tinted Glass
c Chart: Constructing Chart
A
● Points 2, 3, 4, 12, 13, 16, and 17 are out of control in this process; additionally, points 7,
9, 18, and 19 break rule #4.
● In this c chart, the process is not stable and many points go beyond 3 sigma control
levels. Analysis must be done to find the reason and take corrective action.
● The process is not in control.
u Chart Principles
The u chart is used to measure the non-conforming proportion or defectives.

Some of the principles of u chart are as follows:
The u chart follows a Poisson distribution.
Used to identify attribute data for the sample
Sample size is not fixed
Control limits may vary

u Chart: Formulae
Important formulae of u chart are as follows:
ഥ
𝑢
Control limits = 𝑢ത ± 3√( )
𝑎
Where, a = area of opportunity

u Chart
Q The plastics operation counts defects after a “run” which is undetermined

in length (once started, it continues until all material is used). Is the process
in control?
Since the count of defects has a varying area of opportunity and the length
of runs is not constant, u chart will be used.
Plastics Operation
Defects
u Chart: Constructing Chart
A ● In this u chart, point 18 has gone beyond the 3 sigma level. Analysis must be
done to find the reason and corrective action must be taken if necessary.
● Point 18 is out of control in this process.
CuSum and EWMA Charts
CuSum Charts
If µ0 → the target for the process mean

𝑋ത𝑗 → the average of the jth sample
Then, the cumulative sum control chart is formed by plotting the quantity as follows:
𝑖
𝐶𝑖 = ෍(𝑋ത − µ0 )
𝑗=1
EWMA Charts
To plot data to detect small Example: Used in Stock Modeling

To monitor process mean
shifts over a small period Software Packages
or variance
of time
EWMA chart –
time weighted
control chart
Predict performance in the

More weight on recent
next period of change or
observations
instability
EWMA Parameters
L– Control
λ – Weight Centerline Plotted Stat Example
Multiplier Limits
EWMA Parameters
L– Control
Multiplier Limits
❑ Weight is applied to the most

recent rational subgroup average
❑ λ is between 0 and 1
❑ Usually λ is selected between

0.05 and 0.25
EWMA Parameters
L– Control
Multiplier Limits
❑ Multiple of the rational subgroup

standard deviation to set control limits
❑ Typically set to 3 to match other control

charts
❑ Can be reduced for if λ is small (if 0.1 ≥

λ , 2.6 < L < 2.8)
EWMA Parameters
L– Control
Multiplier Limits
This is represented by T or the target

value of the quality characteristic
EWMA Parameters
L– Control
Multiplier Limits
T → the estimates of the long-term process mean

S → standard deviation established
n → the number of samples in the rational
subgroup
The limits widen for each

successive rational subgroup
EWMA Parameters
L– Control
Multiplier Limits
Where,
xi → current rational subgroup average
zi – 1 → running average of all preceding

observations
EWMA Parameters
L– Control
Multiplier Limits
Key Takeaways
SPC aids in the visual monitoring of a process and controlling

its parameters
A rational subgroup represents the process at a particular

point in time
Control chart plots and processes the input and output data
over a period of time
Out-Of-Control (OOC) condition indicates special cause for

variation
p chart is used for defectives which have a varying subgroup

and is represented as a percentage of units rejected
Key Takeaways
c chart is used for defective which have a constant

subgroups size and is represented as number of defects
u chart is used for defects that have a varying subgroup size and
is represented as an average number of defects per opportunity
An I-chart is a plot of the individual data points
MR chart is a plot of the moving range of the previous individuals
A CuSum chart plots the cumulative sums of the deviations

of the sample values from the target value
EWMA stands for Exponentially Weighted Moving Average Chart

Knowledge Check
Knowledge
Check While monitoring a process using a control chart a team observed six consecutive data
1 points increasing. What does this mean about the process?
A. The process is not stable but it is in control
B. The process is stable and in control
C. There is not enough data to determine
D. The process is not stable and not in control

Knowledge
Check While monitoring a process using a control chart a team observed six consecutive data
1 points increasing. What does this mean about the process?
A. The process is not stable but it is in control
B. The process is stable and in control
C. There is not enough data to determine
D. The process is not stable and not in control
The probability of observing 6 data points consecutively increasing is 1.6% and therefore not likely which indicates
that the process is not stable or in control
Knowledge
Check What type of control chart should be made if measuring defectives and the subgroup
2 size changes?
A. X and R
ഥ
B. p chart
C. u chart
D. c chart
Knowledge
Check What type of control chart should be made if measuring defectives and the subgroup
2 size changes?
A. X and R
ഥ
B. p chart
C. u chart
D. c chart
If defectives are measured with a subgroup size that is not constant a p chart should be used.
Knowledge
Check
Which of the following is NOT true of special causes of variation?
3
A. Difficult to eliminate
B. Occur sporadically in the process
C. Can be identified with help of a control chart
D. Is not a part of the process

Knowledge
Check
Which of the following is NOT true of special causes of variation?
3
A. Difficult to eliminate
B. Occur sporadically in the process
C. Can be identified with help of a control chart
D. Is not a part of the process
It takes less investment to remove special cause variations than to remove common cause variation. Hence, special
cause variations are not difficult to eliminate.
Knowledge
Check
What is true of a control chart?
4
A. Does not assume normality of data
B. Typically the UCL and LCL are set to 2 standard deviations away from the mean
C. The probability of having an out of control condition is 0.27%
D. Typically show spec limits

Knowledge
Check
What is true of a control chart?
4
A. Does not assume normality of data
B. Typically the UCL and LCL are set to 2 standard deviations away from the mean
C. The probability of having an out of control condition is 0.27%
D. Typically show spec limits
From the options presented the only choice that is true about control charts is C, in which the control limits are set at
3 standard deviations from mean because it provides a 0.27% of an out of control condition.
Knowledge
Check A team wants to measure defective items in which the subgroup size is constant. What
5 type of control chart could be used?
A. I-MR
B. c-chart
C. u-chart
D. np -chart
Knowledge
Check A team wants to measure defective items in which the subgroup size is constant. What
5 type of control chart could be used?
A. I-MR
B. c-chart
C. u-chart
D. np-chart
Since we are dealing with attribute data, and looking for defectives with constant subgroup size the best chart to use
would be the np-chart.
Knowledge
Check
What is the benefit of using CuSum or EWMA charts over traditional control charts?
6
A. Detects large shifts
B. Detects small shifts
C. Easier to calculate
D. More accurate
Knowledge
Check
What is the benefit of using CuSum or EWMA charts over traditional control charts?
6
A. Detects large shifts
B. Detects small shifts
C. Easier to calculate
D. More accurate
The CuSum and EWMA charts are typically used to plot the data to detect small shifts over a small period of time.
Control Plan
Learning Objectives
Explain control plan
List different control plan tools
Demonstrate transactional control plan

Do You Know
Team 1 Team 2
Developing a Control Plan Celebrating Project Success
Control Plan to Monitor and Maintain Improvements
Control Plan
Control plan is a written summary description of the system for controlling a process.
Describes actions required to maintain the desired state of the process
Describes actions required to minimize process and product variation
Evolves and changes with the process
Is considered a knowledge-transfer document;
Can be created for a process or a step or equipment in a process
Provides a single point of reference
Enables assignment of responsibility

Control Plan
Signals when
Kaizen activities
are needed
States the reaction Describes training

plan needs
Describes
Minimizes process Control Plan maintenance
tampering Strategy schedule
requirements
Elements of Control Plan
Project purpose and objectives
Risk management plan
Resource requirements documents
Process ownership identification
Communication plan recommendation
Process stewardship
Financial analysis and results
Response Plan
Response Plan
Define what unstable

means for each vital X
by performing FMEA
Unstable
conditions
Response
Plan
Elements Describe responsibility
List the action steps to Responsibility
and ownership to take
mitigate the unstable Action plan and required actions whenever
conditions ownership any unstable condition
occurs
Response Plan: Countermeasures
Fix the problem until the root

Containment
cause is identified
Corrective Actions
Correction Fix the problem after

identifying the root cause
Countermeasures
Make the process mistake-

Preventive Actions proof by eliminating the
recurring issues
Cost-Benefit = All identified costs are subtracted from the expected benefits
What to Control: KPIV and KPOV
It is important to define what needs to be controlled to define a strong control

plan.
Process = f (x1, x2, x3…) = Y
Key Performance Input Variable Key Performance Output Variable

(KPIV) (KPOV)
• The output Y is called KPOV.

• The x factors are called KPIV.
• A control plan ensures the desired
• A control plan controls the KPIV.
state for the KPOV.
• A control plan controls the inputs.
• A control plan monitors the output.
KPIV
The KPIVs, or the inputs, of the process can be

identified using various sources, such as:
• Failure Mode and Effects Analysis (FMEA)
• Cause-and-Effect Matrix or Diagram and Cause
Verification Matrix
• Multi-Vari Studies
• Regression Analysis
• Design of Experiments (DOE)
Control Plan Tools
Control Charts MSA Error-proofing SOP PM
● Useful to track ● A technique that ● Also known as ● Also known as ● Also known as
process statistics identifies Poka-Yoke Standard Preventive
over time and measurement ● Refers to Operating Maintenance
detect the error (variation) implementation Procedures ● Refers to
presence of and sources of of fail-safe ● Is a set of written inclusion of
special causes that error to mechanisms instructions that Preventive
reduce the within a process details all the Maintenance as
variation to prevent it steps and part of the
from creating activities of a documented
defects process or scheduled
procedure process or
equipment
maintenance
Developing a Control Plan
After understanding the process, a multi-functional team must be formed that will be
responsible for controlling the process.
Following are the multiple tools that can be used:
FMEA
Special characteristics (critical and significant)
Control plans or lessons learned from similar parts or processes
Technical documentation
Validation plan results
Optimization methods
Team knowledge of the process

Developing a Control Plan
● What do you want to control?

● How often do you need to measure the process?
● Do you have an effective measurement system?
● What is the cost of sampling?
● How much shift can you tolerate?
● Who needs to see the data?
● What type of tool or chart is necessary?
● Who will generate the data?
● Who will control the process?
● What are the system requirements for auditing and
maintenance?
Level of Control
Transactional Control Plan
Manufacturing Control Plan
Part Name/Family: Prepared by: Page:

Part No.: Approved by: Document No.:
Plant/Area: Revision Date:
Process Characteristic/ CTS Specification/ Measurement Sample Frequency Who Where Decision Rules/
Step Parameter Requirement Method Size Measures Recorded Corrective
Action
Injection Y : Part CT 3.250 + 0.005 Gage # 042 5 Each hour Operator X and R If out-of-control
Molding Dimension Q in Chart condition appears,
(Machine Cpk = 2 100% inspect all parts
#16) since last check. If X is
out-of-control, adjust
injection pressure. If R is
out-of-control, adjust
coolant flows.
“ X : Cavity CTQ 1200 + 15 psi Pressure 5 (automatic, X and R If out-of-control

Pressure Cpk = 2 transducer in continuous reading) Chart condition appears,
cavity check: Injection pressure
settings; Temperature
controller.
“ X : Coolant CTQ 5 gal/minute Flow meter on 1 Each hour Operator Check Sheet If flow is in yellow zone,
Flow machine by Machine then adjust it to green
zone. If flow is in red
zone, 100% inspect all
parts since last check
and adjust flow to green
zone.
IT/ITES Control Plan
Process Step What's Input or Spec. Limits/ Measurement Control Sample Frequency Who/What Where is it Decision Rule/
Controlled Output Requirement Method Method Size Measures Recorded Corrective
Action
Plan review Critical code Input 100% Critical Project Plan Weekly project 100% Weekly Project Project Escalation to
for critical details in Code management Manager/ database the Account
code project plan reviews Automated Manager and
workflow for update project
project plan
management
Conduct Critical code Input 100% Critical Project Plan Weekly project 100% Weekly Project Lead/ Project First-level
review for Code management Automated database escalation to
Critical Code reviews workflow for project
project manager and
management second-level
escalation to
account
manager
Conduct Critical code Output 100% Critical Project Plan Project 100% Per project Project Lead / Project First-level
review for Code and Code manager signs plan Code control database/ escalation to
Critical Code review reports off code review database source project
reports code manager and
database second- level
escalation to
account
manager
Key Takeaways
Control plan is a written summary description of the system for

controlling a process.
There are two different types of countermeasures:

corrective actions and preventive actions.
Cost-benefit analysis is used to evaluate the total anticipated

cost compared to the total expected benefits.
Some popular tools to develop and execute control plans

include Control charts, MSA, Error-proofing, SOP, and PM.
Knowledge Check
Knowledge
Check
Which of the following is NOT a correct use of control plans?
1
A. Monitoring key output variables
B. Monitoring key input variables
C. Controlling the process
D. Identifying key input variables

Knowledge
Check
Which of the following is NOT a correct use of control plans?
1
A. Monitoring key output variables
B. Monitoring key input variables
C. Controlling the process
D. Identifying key input variables
The purpose of control charts is to monitor key process input and output variables to ensure stability and minimize
defects. Key variables are not determined using control charts.
Knowledge
Check
Which method provides the most control?
2
A. Written Instructions
B. Poka-Yoke
C. Verbal Instructions
D. PDFSS
Knowledge
Check
Which method provides the most control?
2
A. Written Instructions
B. Poka-Yoke
C. Verbal Instructions
D. PDFSS
PDFSS ensures a process is designed to perform as desired and is therefore the strongest form of control.
Knowledge
Check The most recent observations indicate a process step is not meeting performance
3 metrics per control plan. What should happen next?
A. Use a different performance metric
B. Go to 100% inspection since last sample
C. Refer to the response plan
D. Notify management
Knowledge
Check The most recent observations indicate a process step is not meeting performance
3 metrics per control plan. What should happen next?
A. Use a different performance metric
B. Go to 100% inspection since last sample
C. Refer to the response plan
D. Notify management
The response plan contains the activities the operator should perform if an out of control condition is realized;
therefore, the operator should refer to the response plan.
Knowledge
Check A team discovers an issue in its coding operation and has put a temporary solution in
4 place. The temporary solution is an example of _____.
A. Containment
B. Preventative Action
C. Correction
D. None of the above

Knowledge
Check A team discovers an issue in its coding operation and has put a temporary solution in
4 place. The temporary solution is an example of _____.
A. Containment
B. Preventative Action
C. Correction
D. None of the above
Containment acts as a band aid or temporary solution until the root cause is identified.
Lean Tools for Process Control
Learning Objectives
Explain the concept of Total Productive Maintenance
Describe a Visual Factory
Identify the 5S for Lean Six Sigma

Introduction
TPM
Total Productive Maintenance
Total Productive Maintenance (TPM)
TPM is a holistic approach to equipment maintenance and is commonly used in manufacturing industries.
It eliminates deficiencies from machines It minimizes or removes defects and

and equipment decreases downtime
TPM
It emphasizes maintenance and

improvement of process, system, and It increases the operational efficiency of
environment equipment
Total Productive Maintenance (TPM)
TPM
Overall equipment
= Availability X Performance X Quality
effectiveness
Time during which Measuring if

the process or production is
Measuring defects
equipment is operating at
operational maximum capacity
TPM is the key operational activity for managing quality.

Eight Elements of TPM
Autonomous Equipment
Planned Maintenance
Maintenance Improvement
Equipment design Quality Maintenance

Education and
Excellence
Training
Safety, Health, and TPM in

Environment Administrations
Autonomous Maintenance
Planned Maintenance
Equipment Improvement
Education and Training Includes maintenance of machines and equipment by

greasing, cleaning, general inspection, and minimum
Equipment design Excellence preventive maintenance by the production operators
Quality Maintenance
Safety, Health, and

Environment
TPM in Administrations
Planned Maintenance
Education and Training Includes developing and executing planned

maintenance activities based on factors such as time,
Equipment design Excellence cost, and productivity
Quality Maintenance
Safety, Health, and

Environment
Planned Maintenance
• Includes measures to improve the performance and

Education and Training
efficiency of the equipment
• Measures are taken using different methods such as
Equipment design Excellence
5S, 5-Why analysis, or Kaizen activities
Quality Maintenance
Safety, Health, and

Environment
Planned Maintenance
Education and Training Includes providing systematic training to all the

employees to maintain the equipment and increase
Equipment design Excellence productivity
Quality Maintenance
Safety, Health, and

Environment
Planned Maintenance

Includes new equipment design and identification of
equipment that requires less maintenance
Quality Maintenance
Safety, Health, and

Environment
Planned Maintenance

Includes designing error detection and prevention
methods into production processes
Quality Maintenance
Safety, Health, and

Environment
Planned Maintenance

Targets the goal of an accident-free workplace
Quality Maintenance
Safety, Health, and

Environment
Planned Maintenance
Education and Training Includes applying TPM techniques to administrative

functions
Quality Maintenance
Safety, Health, and

Environment
The main applications of TPM for controlling the improved process are:
Helps maintain and store spare parts of the equipment using 5S method
Spare parts management
Helps collect data for downtime and conduct Root Cause Analysis (RCA)
Measures for downtime
Helps maintain SOPs and train employees to maintain the equipment

Support and guidance
Visual Factory
Introduction
Highway Airport
What is common between the two images?

Visual Factory
A visual factory is a Lean production environment where charts and signs are used to display information
Makes the immediate status of activities clear to all.
Enables the people involved to understand how each plant

works.
Makes the work area self-explanatory at a glance.
Displays real-time information to the workforce.
Helps standardize the processes and to eliminate waste.

Visual Factory
Organizing and standardizing the work

place
Sharing Information
Visual Controls
Visual Factory
Organizing and
standardizing the work Sharing Information Visual Controls
place
To understand the system at a glance, the work place is organized and standardized using
5S Specified Regions and Areas Color Coding
5S stands for • Specified regions and areas • Colors are defined for
• Sort are defined for specific specific activities.
• Set in order purposes.
• Shine
• Standardize
• Sustain
Visual Factory
Organizing and
place
One of the important elements in a visual factory is information sharing.
3-Minute Management Approach Signaling System
Issues, progress, and information Visual elements, audio, or both are

are communicated to the workforce used to signal the status of the
in three minutes using graphics. process, sub-process, or machines.
Visual Factory
Organizing and
place
In a visual factory, visual methods are used for communication. The types of visual controls used:
Control Board SOP Control Chart Control Plans

Helps people to read the Is a set of rules and Provides information on Are plans information
that are
Provides on
complete process at a regulations that must be process performance, displayed to evaluate the
process performance,
glance and analyze how mandatorily followed in a helps to understand if the performance of the if the
helps to understand
the process is working particular process process is in control, and process
process on
is ina control,
timely basis
and
helps sustain the helps sustain the
improvements made improvements made
Visual Factory
A visual factory
 
Keeps the

Aids in solving
Displays the real- workforce well- issues and
time scenario informed of the bottlenecks
process immediately
  
Highlights the Improves process Monitors,
support required, performance maintains, and
when needed controls inventory
5S
5S
Techniques that help in improving the workspace, productivity, and maintenance:
Sort or Seiri
Seiton or Stabilize
Seiso or Sweep
Seiketsu or Standardize
Shitsuke or Sustain
5S
Sort or Seiri Seiri is focused on sorting and getting

organized:
• Sorting necessary and unnecessary
Seiton or Stabilize
items
• Keeping items based on requirement
• Preventing accumulation of items by
Seiso or Sweep
assigning them tags
Seiketsu or Standardize Seiri helps in:

• Simplifying tasks
• Effectively using the workplace
Shitsuke or Sustain • Purchasing items carefully
5S
Sort or Seiri Seiton is for Straighten or Stabilize

• Classify and set items in order to:
• Improve efficiency
Seiton or Stabilize • Prevent loss and wastage of time
• Choose the correct place, position, or holder
for tools, items, and material to:
Seiso or Sweep • Make workflow smooth and efficient
• Organize storage for all items
• Identify frequently and non-frequently
Seiketsu or Standardize used items
• Mark or color code items so that they can be
visually located
Shitsuke or Sustain
5S
Sort or Seiri
Seiso or Shine involves keeping the
workplace shiny and clean by:
Seiton or Stabilize • Eliminating clutter and organizing items
• Making the workplace clean so that it is
easy to identify malfunctioning
Seiso or Shine equipment
• Preventing mess
• Finding the root cause of contamination
Shitsuke or Sustain
5S
Seiketsu is for Standardize

Sort or Seiri • Standardizing best practices across the work
place
• Performing tasks in a standard manner
Seiton or Stabilize
• Ensuring personal and environmental
cleanliness
Seiso or Shine
Tools used include
• Job cycle charts
• Visual cues
• Scheduling 5 minutes of 5S activity
• Checklists
Shitsuke or Sustain • Visual management with color coding
5S
Shitsuke is for Sustain. It helps

Sort or Seiri • Maintain a discipline and commitment
• Maintain orderliness
• Define a new status quo and standard for
Seiton or Stabilize
work place organization
Tools used for Sustaining 5S include:

Seiso or Shine
• Signs and posters
• Newsletters
Seiketsu or Standardize • Check sheets
• Pocket manuals
• Team and management check-ins
Shitsuke or Sustain • Performance reviews
• Department tours
Key Takeaways
The TPM method is commonly used in manufacturing industries.
TPM is calculated as Overall Equipment Effectiveness = Availability

x Performance x Quality.
Visual factory is a lean production environment where charts and

signs are used to display information.
The core elements of visual factory are organizing and standardizing

the work place, sharing information, and visual controls.
5S in Lean Six Sigma stands for Seiri or Sort, Seiton or Stabilize,

Seiso or Sweep, Seiketsu or Standardize, and Shitsuke or Sustain.
The 5S techniques help in improving the workplace,

productivity, and maintenance.
Knowledge Check
Knowledge
Check What is the overall equipment effectiveness of an area that has 95% Availability, 90%
1 Performance, and 98% Quality?
A. 95%
B. 73%
C. 84%
D. 94%
Knowledge
Check What is the overall equipment effectiveness of an area that has 95% Availability, 90%
1 Performance, and 98% Quality?
A. 95%
B. 73%
C. 84%
D. 94%
OEE or Overall Equipment Effectiveness is the product of Availability (95%), Performance (90%), and Quality (98%).
Here, this product is 84%.
Knowledge
Check
Which is NOT a benefit of a Visual Factory?
2
A. Displays real-time scenario
B. Keeps the work force uninformed of the process
C. Highlights support required when needed
D. Improves process performance

Knowledge
Check
Which is NOT a benefit of a Visual Factory?
2
A. Displays real-time scenario
B. Keeps the work force uninformed of the process
C. Highlights support required when needed
D. Improves process performance
All of the choices are benefits of a visual factory except option b because a visual factory keeps the work force
informed of the process.
Knowledge
Check
In TPM, what is Equipment Improvement?
3
A. Maintenance of machines and equipment by greasing, cleaning, general inspection, and

minimum preventive maintenance, which is taken care of by the production operators.
B. Developing and executing planned maintenance activities based on factors like time, cost,
and productivity.
C. Measures to improve the performance and efficiency of the equipment are taken using
different methods such as 5S, 5 Why analysis, or Kaizen activities.
D. Design error detection and prevention into production processes

Knowledge
Check
In TPM, what is Equipment Improvement?
3
A. Maintenance of machines and equipment by greasing, cleaning, general inspection, and

minimum preventive maintenance, which is taken care of by the production operators.
B. Developing and executing planned maintenance activities based on factors like time, cost,
and productivity.
C. Measures to improve the performance and efficiency of the equipment are taken using
different methods such as 5S, 5 Why analysis, or Kaizen activities.
D. Design error detection and prevention into production processes
Equipment Improvement is the measures to improve the performance and efficiency of the equipment are taken
using different methods such as 5S, 5 Why analysis, or Kaizen activities.
Knowledge
Check Which type of visual control is a set of rules and regulations that has to be mandatorily
4 followed in a particular process?
A. SOP
B. Control Board
C. Control Chart
D. Control Plan
Knowledge
Check Which type of visual control is a set of rules and regulations that has to be mandatorily
4 followed in a particular process?
A. SOP
B. Control Board
C. Control Chart
D. Control Plan
SOP or Standard Operating Procedures are a set of rules and regulations that must be mandatorily followed.
Knowledge
Check
Which 5S step is focused on cleaning?
5
A. Straighten
B. Sort
C. Sustain
D. Shine
Knowledge
Check
Which 5S step is focused on cleaning?
5
A. Straighten
B. Sort
C. Sustain
D. Shine
The focus of Shine is to make sure the work area is clean. In a clean environment, issues can be seen better.
Lean Six Sigma Activities and Tools - Control
Activities
❑ Review Project Charter ❑ Process Map Flow ❑ Identify Root Causes ❑ Develop Potential Solutions ❑ Develop SOP’s, Training Plan
❑ Validate High-Level Value ❑ Identify Key Input, Process ❑ Reduce List of Potential ❑ Evaluate, Select, and & Process Controls
& Voice of the Business ❑ Validate Measurement ❑ Estimate Impact of Root ❑ Develop and Implement ❑ Confirm Attainment of Project
❑ Validate Problem Statement System Causes on Key Outputs Pilot Solution Goals
❑ Develop Project Schedule ❑ Complete Improve Tollgate ❑ Transition Project to Process
❑ Complete Define Tollgate Owner
❑ SIPOC Map ❑ Statistical Sampling ❑ Hypothesis Tests ❑ Design of Procedures (SOP’s)
❑ Project Valuation (ROI) ❑ Measurement System ❑ Simple & Multiple Experiments (DOE) ❑ Process Control Plans
❑ Stakeholder Analysis Analysis (MSA) Regression ❑ Solution Selection ❑ Visual Process Control
❑ Communication Plan ❑ Gage R&R ❑ ANOVA Matrix Tools
❑ Effective Meeting Tools ❑ Control Charts ❑ Components of ❑ Piloting ❑ Statistical Process Controls
❑ Time Lines, Milestones, ❑ Histograms Variation ❑ Pugh Matrix (SPC)
and Gantt Charting ❑ Normality Test ❑ Pull System ❑ Visual Workplace
❑ Pareto Analysis ❑ Process Capability Analysis ❑ Total Productive
Maintenance
❑ Metrics
Tools
Control Tollgate Questions
❑ Has the team prepared all the essential documentation for the improved process, including revised/new Standard Operating Procedures
(SOP’s), a training plan and a process control system?
❑ Has the necessary training for process owners/operators been performed?
❑ Have the right measures been selected, and documented as part of the Process Control Plan, to monitor performance of the process and
the continued effectiveness of the solution? Has the metrics briefing plan/schedule been documented? Who owns the measures? Has the
Process Owner’s job description been updated to reflect the new responsibilities? What happens if minimum performance is not achieved?
❑ Has the solution been effectively implemented? Has the team compiled results data confirming that the solution has achieved the goals
defined in the Project Charter?
❑ Has the Benefits Realization Schedule been verified by the Financial Representative?
❑ Has the process been transitioned to the Process Owner, to take over responsibility for managing continuing operations? Do they concur
with the control plan?
❑ Has a final Storyboard documenting the project work been developed?
❑ Has the team forwarded other issues/opportunities, which were not able to be addressed, to senior management?
❑ Have “lessons learned” been captured?
❑ Have replication opportunities been identified and communicated?
❑ Has the hard work and successful efforts of our team been celebrated?
Project: Control Phase
Control Phase
This case study is a project simulation. As we complete each Phase of the DMAIC (Define, Measure, Analyze,
Improve, and Control) process, different aspects of the case study will be presented to you. You will be given
background information, instructions, data sets, project updates, and all necessary information to work
through each step of the project and answer questions.
Note:
You will be using only some of the DMAIC tools and techniques in the case study to practice solving a single
problem.
Project Update
Your team has completed the Define, Measure, Analyze, and Improve phases. In the Improve phase a
few quick wins were identified such as process automation and creating a more standardized serial
number creation system. The process Sigma Level improved from 2.146 to 3.035.“
After completing the Improve tollgate with the project Champion, the team moves to the Six Sigma
Phase: the Control phase.
Project Update: Control Plan
The team and the process owners began work on the control plan.
They started with a template as shown here:
What is Measurement Measurement Who Response Timeline Owner

measured Frequency Method Measures Action
X1
X2
Project Update: Control Plan
• Along with creating a control plan for accountability, the team created reports that the process
stakeholders would have to generate each month to ensure the process stays in control. The FMS
report will show the number of matching and non-matching forklifts in a percentage that could be
compared with that of previous months. Also, a Non-Match Resolution report was created to
investigate discrepancies between fleet reports and invoices.
• The team also communicated the new serial number policy internally and to vendors and finalized
all project documentation. At the Control Tollgate Review meeting, the team demonstrated how
control was handed over to the process owners and presented the remaining deliverables to the
Project Champion.
Control Phase Questions
1. What should be the main objective or outcome from the Control Phase?
2. What is accomplished by identifying “Who Measures” in the control plan?
3. What is an effective method for maintaining accountability for process control?
Control Phase Answers
1. The main objective of the Control Phase is to ensure the improvements are maintained well
after the project is over.
2. By identifying Who Measures in the control plan, accountability is established and ensures the
task will be completed.
3. An effective method for maintaining accountability for process control is to document a
response action plan for out-of-control scenarios and have someone assigned to take action if
an issue occurs.
Exam Tips
Introduction
Following are the tips for IASSC and the ASQ exam that will help you prepare better:
• ASQ and IASSC exams are proctored which means you will have to register for the exam and take it
at a designated testing location. IASSC also has an option for online exam, but a webcam is required.
• Simplilearn’s LSSGB practice test helps you prepare for the exam. Read each question clearly and
mark the keywords and topics that you want to retrieve quickly during the exam. Don't just skim over
it and think you know what they are asking for If you get most of the questions correct (at least 80%),
you are ready to take the exam. As your exam date approaches continue to review the different
sections based on the frequency of the different types of questions that will depend on the exam you
are taking.
IASSC EXAM
• IASSC Exam is closed book and you will have three hours to complete 100 questions.
• To achieve the professional designation of IASSC Certified Green Belt from the International Association
for Six Sigma Certification, candidates must score a minimum of 385 points out of 500 points. There
are no prerequisites for the IASSC Certified Lean Six Sigma Green Belt Exam. The exam has
approximately 20 multiple-choice questions from each major section of the ILSSBOK.
• On-Demand Web-Based Certification Testing is available 24 hours a day, 7 days a week, 365 days per
year - or testing can be completed at PearsonVue—Professional Testing Centers
• For either online or testing center option, visit the IASSC website to learn more about how to register.
ASQ EXAM
• ASQ Exam is open book. You have 4 hours to complete 100 questions.
• 3 years of paid work experience in one or more areas of the Six Sigma Green Belt is required to sit for the
ASQ exam.
• Questions from each section of the course will be in the following frequency:
Section Percent
Six Sigma and the Organization 13
Define Phase 23
Measure Phase 23
Analyze Phase 15
Improve Phase 15
Control Phase 11
• Exams are offered 3 times a year: At the ASQ World Conference on Quality and Improvement in May, and at
ASQ Local Sections and International Sites in June and December. Normally the deadline to register or apply
for the exam ends two months before the exam date. Check the ASQ website for more details.
• You are not penalized for wrong answers so attempt every question.
ASQ EXAM
• ASQ certification exams use a "cut-score" process. You need to score 550 points out of a
possible 750 to be certified.
• Each exam scoring is adjusted for exam difficulty on subsequent forms of the test. This means
if you get a hard test, you won’t need to get as many questions right to meet the pass. If you
get an easy test, you will need to get more of those easy questions right to pass.
Please note that you are not allowed to carry the practice questions or solution text into the exam.
As it is an open book, you can bring almost everything else for reference, except those two things.

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Lean Six Sigma Green Belt

In a competitive, universal market, every organization strives for continuous improvement as

Lean Six Sigma is a management approach to business improvement.

MANAGEMENT APPROACH BUSINESS IMPROVEMENT EXCEPTIONAL RESULTS

LEAN SIX SIGMA

Problem solving Basic understanding of business

Skillset to deploy Lean Six Sigma projects

Implement the Lean methodology

DMAIC Tools and statistical techniques Six Sigma quality

2 Test papers on ASQ 27+ hours of high-quality

DMAIC Six Sigma and

Projects (optional) End-of-Course

Online Classroom Flexi-Pass

SUBMIT A PROJECT Complete any one project

At least 80% on the online exam

By the end of this lesson, you will be able to:

Identify the Six Sigma process and tools

Explain the impact of Six Sigma in an organization

Measure organizational performance

The glass is half The glass is bigger

The glass is full with

Quality is defined as meeting the requirements of the customer.

Making changes to meet Meeting customer’s

• 14 key principles for • Statistical Process Control • Quality trilogy

W. Edwards Deming Walter A. Shewhart Joseph M. Juran

• Ishikawa’s cause-and-effect • Quality loss function concepts • Crosby’s 14 steps to quality

Kaoru Ishikawa Genichi Taguchi Philip Crosby

Sigma (σ) is a Greek letter Six Sigma is a business

The Six Sigma process is an 5

How Six Sigma impacts the quality of products and services.

Six Sigma process Increased profits

Bill Smith and Mikel Motorola saved $16

1986 1995 1998 2000 2001

Jack Welch initiated Six

Eliminates the root cause of Reduces rework by getting it

Creates robust products and

Reduces process variation and

Achieves the organizational

Organizations successful with Six Sigma:

Focus on the customer

Achieve long-term improvements

Each phase has

Define Measure Analyze Improve Control

Document the problem and the desired outcome

Define Measure Analyze Improve Control

Obtain baseline process performance levels

Define Measure Analyze Improve Control

Identify key root causes for process variation

Define Measure Analyze Improve Control

Develop, test, and implement solutions

Define Measure Analyze Improve Control

Monitor key factors and maintain the gains

Define Measure Analyze Improve Control

Define Measure Analyze Improve Control

• SIPOC • Measurement • Simple linear • Brainstorming • Control charts

Ideal temperature for a cup

Customers’ feedback Java House Coffee Management’s feedback

Rolled Throughput Yield (RTY)

Defects per Million Opportunity (DPMO)

Specification Limits Meaning

Defects per Million

Specification Limits Meaning

Defects per Million

Specification Limits Meaning