Welcome to LSSGB Competency

Development Program
By
KPMG
Introduction to Six Sigma
• Evolution of six sigma
• Six Sigma was introduced by Bill Smith in year 1986 - Motorola
• Quality Inspection -
• ISO – 1947
• JUSE – Japanese Union of Scientists and Engineers
• 1979 – Bob Gelvin
• MBNQA – 1988
• 1995 – GE – Jack Welch
Counting the f’s
Read the passage given below, individually and considering that every occurrence of the alphabet “f”
is a defect, report out the number of f’s mentioned in the passage.

“The necessity of training farm hands for first-class farms in the

fatherly handling of farm livestock is foremost in the minds of farm
owners. Since the forefathers of the farm owners trained the farm hands
for first-class farms in the fatherly handling of farm livestock, the farm
owners feel they should carry on with the family tradition of training
farm hands of first-class farms in the fatherly handling of farm livestock
because they believe it is the basis of good fundamental farm
management.”
Evolution of Lean
• Lean, similar to Six Sigma is a process improvement that is solely based on
the fundamental goal of waste elimination and flow maximization.
• In other words, meeting customer requirements faster, quicker and better,
that is in a more effective and efficient way.
• Lean manufacturing, as management philosophy, came mostly from the
Toyota Production System (TPS). The term “lean” was first introduced in
article “Triumph of the Lean Production System” written by John Krafcik
in1988.
• Taiichi Ohno, considered to be the father of the Toyota Production System,
was instrumental in improving overall customer value by focusing on
reduction of the process wastes at Toyota.
 What is Six Sigma
• Six Sigma is a continuous improvement methodology which focuses
on minimizing variations in the process.
PDCA Variations: Deviation from the
standard value
SDCA Std login time: 9:30 AM
PDCA 1 – 9:29 am
2 – 9:27 am
SDCA 3 – 9:31 am
Productivity - 95% 4 – 9:32 am CCV – Common
PDCA
5 – 9:29 am Cause variations
6 – 9:31 am
Productivity - 90%
PDCA – Plan Do Check Act .
SDCA – Standardize Do Check Act .
.
16 – 11:45 am – SCV – Special cause
• CCV – These are the variations which are observed in the process
when the process is not affected by any external entity or adverse
behavior of the process parameters.
• SCV – These are the variations which are observed in the process
when the process is affected by any external entity or adverse
behavior of the process parameters.

Six Sigma is a CI methodology which focuses on

eliminating the effect of SCV and minimizing
the effect of CCV.
Focus of Six Sigma
• Reduce Variation
• Reduce Defects
• Reduce Cost
• Reduce Cycle Time
• Delight Customer
Definitions of Six Sigma
Definitions of Six Sigma:
Metric: Demonstrates the level of Quality at 3.4Defects Per Million Opportunities or
99.99967% of process Yield

Methodology: Two approaches or methodologies

Management System: Overall organizational strategy to drive improvements in the

organization

Commitment: It is a commitment given by producer to the consumer to provide good

quality products at reduced costs.
Used to
Methodology While
designing
improve the new
existing processes or
processes systems

D - Define D - Define
M - Measure
M - Measure A - Analyze
A - Analyze D - Design
I - Improve V – Verify

C - Control DFSS – Design for

Six Sigma
Significance of Six Sigma
Define Phase
• Objective: To identify the opportunities of Improvement and to define
the problem

Customer feedbacks
Employee • Customer
Production report • Process performance – KPI’s
Industry experts • Management Target
Complaints
Benchmarking
Audit Findings
Standardization
Technology
Maintainance
Define Phase
• Objective: To identify opportunities for improvement and to define
the problem
Step 1: To identify opportunities for improvement Feedbacks VOC – Voice of
Internal Customer Complaints Customer
Customer - External Customer Surveys
Process Performance – KPI’s – Key Performance indicators Focused group
Management Target discussions
CTQ – Critical to
Quality
Define:
Objective: Identify and define the problem

Step 1. Identification of the problem(Opportunity for improvement)

Sources: Channels:

Customer: Feedbacks, surveys, focused group discussions

Process Performance:
Management Targets:

Process Performance: KPI’s – Monitor and track the KPI’s

Find the consistent gap – OFI

Management Target - Annual Business Plan – Objectives (Big Y)

Voice of Customer(VoC):
You take too long to sanction a loan
You always serve cold pizza
CTQ – Critical to Quality
N – Name of metric - loan processing time
U – Unit of measurement - hr
T – Target- 24 hrs
N – Temperature of pizza
U – UOM – degree Celsius
T - 70
Analyze the VOC
• What are the different categories of VOC
• Prioritize the VOC categories

1) Affinity Diagram
2) Kano Model
Affinity Diagram
• Record each VOC on a post it note in bold letters

• Without talking sort the ideas simultaneously as a team into 5 –10 related groupings For each
grouping create summary or header cards using consensuses
• Draw the final affinity diagram connecting all finalized header cards with their grouping
Affinity Diagram – An Example
Personal
Flexible product Easy process Availability Advice/consulting
interface

Knows about my
Low interest rate Easy application Will come to my facility Knowledgeable reps
finances

Available outside normal business Knows about my

Variable terms Easy access to capital Professional
hours business

All charges Makes finance

Quick decision Available when I need to talk Friendly
clearly stated suggestions

Make me feel Cares about my

Pay back when I want Can apply over phone Responsive to my calls
comfortable business

No prepayment Know status of loan during Patient during Has access to

Talk to one person
penalties/ charges application process experts

Know status of loan (post- Provides answers to

Pre-approved credit Will come to my facility Knowledgeable reps
approval) questions

Preference if bank Available outside normal business

Variable terms Professional Calls if problems arise
customer hours
Kano Model – Dr. N. Kano – Japanese Sensai
Fast Processor – Qcom SD 865
Camera – Deal camera – 48MP 1. Calling facility
3.5mm jack 2. SMS facility
AMOLED
Screen Size
1. Basic Qualities (Must Be Qualities)
Battery Back up – 6000MAH
2. More the Better ( One Dimensional Qualities)
Brand
3. Delighter Qualities
Wireless charging
Gorilla glass protection
Asthetics
OS – Android
Internal Storage – 1TB
RAM –8GB - 16GB – 18GB
Accessories
Warranty
Retina Scan for lock opening
 KANO Model
Satisfaction
+

More the Better

Delighters

Dysfunctional - + Functional

Must Be

-
Dissatisfaction
Step #2 – Creation Milestones
of Project Charter
Planned Start Actual Start Planned end Ac
Date Date date da
Define
• Business Case – Linkage of the Measure
project to organizational objective, benefits to
the organization. Analyze
CTQ UOM Current Level Target Level Time period
• Problem Statement – 1) What is the Pain, 2) What is the Impact of Pain, 3)
Improve
Since when is the pain (Data Period)
Control
CST days 4 2 30days
• Goal Statement - SMART
• Scope of the project
In Scope: Health Insurance
Out of Scope: Motor Insurance, Transit Insurance, Fire etc
• Milestones
• Team Details
Sponsor Signoff:
 CTQ UOM Current Level Target Level Time period
Project Charter
CST days 4 2 30days

• Project charter is a one page document which provides complete information about the project
• Business Case – How the project is linking with the organizational objectives
• Problem Statement – 1. Pain
2. Impact of the Pain
3. Data period for pain – since when is the pain

Based on the data from 1st Jan 2020 to 31st March 2020, its observed that
the Claim Settlement Time 4 days, which is on a higher side as compared
to industry standard of 2 days, this high claim settlement time is resulting
in loss of revenue by 20%.
• Goal Statement
Scope
SMART – Specific, measurable, achievable, realistic and of a
project:
timebound
In Scope: Medical(Health insurance) Claims
Milestones Planned Start Actual Start Planned end Actual end
• Scope of the project Date Date date date
Out of Scope: Marine, motor etc
• Milestones
• Team Details
Define
Measure
Analyze
Team Details
• Sponsor – CXO or a Director level person
• Champion - Toll Gate Review:
• Black Belt
• Green Belt(Leader)
• Team Members
• SME’s – Subject Matter Experts