Continuous Improvement &

Six Sigma Green Belt

Certification
Virtual Session 1 (Keisen v.2016.03.01k2)
 Video 1
Continuous Improvement is important
 Video: Leader´s Vision

• Mike Marrow, CEO

• Why is Qualfon so interested in Continuous
Improvement Culture?
 Introduction
Continuous Improvement and Six Sigma DMAIC
methodology overview
 •Understand the problem that impacts Business
Problem performance Problem Results

Measure the •Evidence Based understanding of the

problem
Define
problem

Causal •Find the origin of the problem to define a

relationship reliable data driven solution

Control VOC Measure

Practical •Implement the best solution (quality, cost, &
solution delivery, safety) Voice of
the
•Create a system to stabilize and sustain a Process
Control plan long term solution

Improve Analyze
•Measure the benefits of the improvement
Results (financial, service, sales, growth)

Continuous Improvement (CI) Culture promotes customer satisfaction and value added by streamlining
operations, improving safety, quality and service, reducing costs, eliminating defects and errors in every
organization wide process in a daily basis.
What is Quality?

How do

YOU
define quality?
What is Quality?
Different individuals and organizations have given different
definitions for Quality.
“Quality is defined from the customer’s point of
view as anything that enhances their Deming
satisfaction.”
“Fitness for use. Those product features which
meet the needs of customers and thereby
How do
provide product satisfaction. Freedom from Juran

YOU
deficiencies.”
“The totality of features and characteristics of a
product or service that bear on its ability to ASQ
satisfy stated or implied needs.”
“Quality is defined as knowledge of agents that
define quality?
would enable them to provide accurate and
consistent solution to the customer at the very first COPC
attempt.”
“Degree to which a set of inherent
characteristics, of a product or service, fulfil ISO
requirements.”
 What is Quality?
From the Customer’s Point-of-View

UNDERSTANDING customer
requirements

DESIGNING products and

services that satisfy those
requirements.
DEVELOPING processes that
are capable of producing those
products and services.

CONTROLLING AND
MANAGING those processes
so they consistently deliver to
their capabilities. CONTINUOUSLY IMPROVING
processes to develop a
culture towards constant
change
 Quality characteristics
• Q: Quality: physical & affective, design, attitudes and performance attributes
• C: Cost: price, cost, waste, investments and value added attributes
• D: Delivery: distribution, service or operation time & quantity attributes
• S: Safety & Security: hygiene, information security attributes
• M: Morale: work environment, proactiveness, well being attributes
• S: Service: customer focus and satisfaction, after service attributes
Brain Flex
How to assess customer
satisfaction?
• Considering different quality
characteristics of our products and
services, please design a simple
survey to assess our customer
R: satisfaction.
• There is no “one correct” answer,
however most of the surveys only
assess our capability to meet
requirements or promised attributes
not customer satisfaction.
Video 2
Noriaki Kano Analysis: Quality
Characteristics
Video: NORIAKI KANO Analysis
Customer Satisfaction
I am delighted

One dimensional
quality

Service Fulfillment

Performance
requirements

I am angry
Video: NORIAKI KANO Analysis
Customer Satisfaction
I am delighted

One dimensional
quality

Service Fulfillment

It´s obvious
Performance Mandatory
requirements quality

I am angry Mandatory
requirements
Video: NORIAKI KANO Analysis
Customer Satisfaction
I am delighted
Quality of
Attractiveness
Not a problem One dimensional
quality
Delighter
requirements Service Fulfillment

It´s obvious
Performance Mandatory
requirements quality

I am angry Mandatory
requirements
Video: NORIAKI KANO Analysis
Customer Satisfaction
I am delighted
Quality of
Attractiveness
Not a problem One dimensional
quality
Delighter
requirements Service Fulfillment

It´s obvious
Performance Mandatory
requirements quality

I am angry Mandatory Reverse

requirements quality
Video: NORIAKI KANO Analysis
Customer Satisfaction
I am delighted
Quality of
Attractiveness
Not a problem One dimensional
quality
Delighter
requirements Service Fulfillment

It´s obvious
Performance Mandatory
requirements quality

I am angry Mandatory Reverse

requirements quality
In order to improve, we must focus.....
QUALITY OF? AND WHERE?
Business Client
The service unit

The product
Program System

The process

The skills Area Region

Management
Where? Process
Activity
What can be improved?
 The “Hidden Factory” refers to the
activities included in a procedure.
These include Band-Aid treatments,
workarounds and eventual re-work.
The Hidden Factory
What can be improved and impact Client / Customer
satisfaction and value added generation?
What is Continuous Improvement?
• Reduction of defects / faults / errors.
Problem solving
– Eliminate errors. approach
– “Doing things correctly” (level 1).

• Certainty (consistency, predictability).

Problem solving
– Certainty in the processs (process stability) approach
– “Doing things correctly” (level 2).

• Task achievement & Innovation.

– Go to the forefront. Design
approach
– Achieve defined tasks and challenges. (innovation)
– “Do things correctly vs. Do the correct things”.
 KAIZEN
• “KAIZEN” japanese word meaning improvement or
change towards the correct destiny.

改 = KAI = Change, Alter, Correction.

善 = ZEN = Good, Right, Better.
改善 = KAIZEN = Improvement, Change for the better
KAIZEN 改善 IMPROVEMENT
• To Change for the better
5W – 2H
• What?
• Who?
• Where?
P= Plan • When?
A P D= Do • Why?
• How?
C= Check • How much / many?
C D A= Action
 BASELINE RULE
• First.
– Process stabilization.
• Stable = Controlled = Predictable
– Compliance with standards and procedures.
• Meet client, customer needs.
• Meet regulations and laws.
• Meet our corporate standards and procedures.
• Verification of everybody´s skills.

• Second:
– Improvement efforts.
CI way of thinking
• Any improvement initiative, requires a
stabilization effort
A P
Improve (Kaizen)
A P C D
C D Stabilize

Stabilize Improve (Kaizen)

A P
C D
A P Improve (Kaizen)
C D Stabilize

Stabilize Improve (Kaizen)

 Homework
So, what can be improved and where is it
located?

• Simply watch your daily work and understand

“Your Hidden Factory” .
• Carefully observe your current situation and take
notes.
• Classify QCDSMSM attributes of your services.
• Write all your findings, and discuss with your
peers and managers.

• Note: All deviations or improvement ideas you may

discover, must be fully discussed and approved with
your manager before any action is taken or put into
practice.

• This homework wants all participants to apply

learned concepts and start to discover
improvement opportunities. Not to solve
Thank you
Continuous Improvement &
Six Sigma Green Belt
Certification
Virtual Session 2 (Keisen v.2016.03.01k)
 Review
• “Hidden Factory”
• Kano Analysis Model
• Continuous Improvement.
• Improvements through Problem Solving
Approach.
• PDCA / Problem solving main steps.
 Video 3
How to understand process variation?
 Video: Process Variation

• Have you seen a Gauss “bell shaped” curve?

– Use of Quincuncx to explain:
• Bell shaped curve of a normal process.
• Variation in a process = Variables out of our control.
• Central tendency and dispersión.
• How to reduce variation? = Control of more variables.
• How to mess up a process? = Non evidence based
actions and decisions.
Excellence vs. Certainty
Acceptable Quality Level

Variation

Successes
Errors

Low Quality Index High Quality Index

Mean

No Good Excellence
Process Stability (reduce variation)
Acceptable Quality Level

Errors

Low Quality Index High Quality Index

Mean

No Good Excellence
Process stability = Predictable
Acceptable Quality Level

Variation 2

Variation 1

Successes
Errors

High Quality Index

Low Quality Index Mean

No Good Excellence
Quality by Improvement Acceptable Quality Level 2

Acceptable Quality Level 1

Improvement of the
Quality Level

Errors

Low Quality Index High Quality Index

Mean

No Good Excellence
 Quality by Continuous Improvement
Quality Level

Improvement of
the Quality Level

Errors

Low Quality Index High Quality Index

Mean

No Good Excellence
Brain Flex discussion

What can we stabilize +improve?

• Who has the best insight of his Job ?
• Who is the the best candidate to
improve it ?

R:
• Those who do it every day.
• They are (we are)
 Video 4
What is the meaning of 6 Sigma?
 Video: 6 Sigma meaning

• How to understand standard deviation?

– Use of Quincuncx to explain:
• Bell shaped curve of a normal process.
• Central tendency and dispersión.
• Why do we say 6 Sigma?
Video: Process distribution & Standard Deviation
And why only 6 sigmas?
One Standard Deviation

99.7%
Six Standard Deviations

Mean

Central tendency
Brain Flex

Standard Deviation and its

meaning
• If a customer response process has
a mean value (average) of 30
seconds and a standard deviation
(sigma) of 5 seconds, what can you
say about this process?
R:
• Even if average time is 30 sec, process
time goes from 15 to 45 secs. In most
cases
 Performance metrics
• Percentage defective
• PPM: Defective parts per million units
• DPU: Defects per unit
• DPO: Defects per opportunities
• DPMO: Defects per million opportunities
 Fraction Defective
• Fraction Defective: “Good vs Bad”, “OK vs No Good (NG)”
– Fraction Defective is the number of defective units divided by the total
number of units
– Note: a defective unit is any unit containing one or more defects.
– Ex. 50 services (online chat) are randomly selected and inspected. Two
services have typos, one service has typos and misspelling of customer
name (2 defects in same one service), three services give wrong
directions. 6 services were defective (low Customer Satisfaction Index)

6 defective services out

of 50 services
6/50 = 0.12
 Fraction Defective
• Fraction Defective: “Good vs Bad”, “OK vs No Good (NG)”
– Ex. 50 services (online chat) are randomly selected and inspected. Two
services have typos, one service has typos and misspelling of customer
name (2 defects in same one service), three services give wrong
directions.
• Total of 7 defects in 6 out of 50 services sampled.
• Number of defective services = 6
• Fraction Defective = 6/50 = 0.12
• Interpretation: At this quality level, we can expect this proportion of defectives
in average in our process (e.g. 12 defectives each 100 services on average).

Defects Defectives

7 defects in 6 defective
services out of 50 services
 Percentage Defective, PPM
• Percentage Defective.
– Percentage Defective is the Fraction Defective multiplied by 100 or the
number of times a defective unit or service will occur in 100 units or services
produced.
• Defective PPM: Parts per million
– Defective PPM or simply PPM is the Fraction Defective multiplied by
1,000,000 or the number of times a defective unit or service will occur in 1
million units or services produced.

– Ex. 50 services (online chat) are randomly selected and inspected. 6

defective services are detected.
• Fraction Defective = 6/50 = 0.12
• Percentage Defective: At this quality level, 12 defectives per 100 services
• PPM: At this quality level, 120,000 defectives per 1 million services
 DPU, DPO, DPMO
• DPU: Defects per unit
– Number of defects in a sample divided by the
number of units sampled
– Ex. 50 services (online chat) are randomly selected
One unit,
and inspected. Two services have typos, one
service or
service has typos and misspelling of customer
operation with 3
name (2 defects in same one service), three
defects
services give wrong directions.
• Number of non conforming or defective services = 6
• Total of 7 defects in 6 out of 50 services sampled.
• DPU = 7/50 = 0.14
• Interpretation: At this quality level, each service can
contain on average this number of defects (e.g. 14
defects each 100 services on average).
 DPU, DPO, DPMO
• DPO: Defects per opportunities
– Number of defects in a sample divided by the total number of defect
opportunities or defect types.
– Ex. Each service (online chat) could have 4 defects: Typo, incorrect
name, wrong direction and incomplete information. Therefore each
service has 4 defect opportunities. 50 services are randomly
selected and inspected. Two services have typos, one service has
typos and misspelling of customer name (2 defects in same one
service), three services give wrong directions.
• Total of 7 defects out of 200 opportunities (50 services x 4 defect opportunities /
sample)
• DPO = 7/200 = 0.035
• Interpretation: At this quality level, each service can contain on average this
number of DPO (also, we can say 35 defects each 1000 opportunities on
average).
 DPU, DPO, DPMO
• DPMO: Defects per million opportunities
– Number of defects in a sample divided by the total number of defect
opportunities multiplied by 1 million. DPMO standardizes the number
of defects at the opportunity level (not per unit) and is useful when
comparing processes with different characteristics.
– Ex. Using the DPO example, 50 services randomly selected and
inspected. 2 services have typos, 1 service has typos and misspelling
of customer name (2 defects in same one service), 3 services give
wrong directions. Each service could have 4 defect opportunities.
• Total of 7 defects out of 200 opportunities (50 samples x 4 defect opps / sample)
• DPO = 7/200 = 0.035
• DPMO = 0.035 x 1,000,000 = 35,000
• Interpretation: At this quality level, if our process remains the same, each 1,000,000
opportunities will generate 35,000 defects on average
 Note
• DPMO (Defects per Million Opportunities) differs from
Defective Parts Per Million (PPM) as it comprehends
the possibility that one defective unit or part under
inspection may have multiple defects (same kind or
different types of defects).

• DPMO is equal to PPM only when the number of

opportunities for a defect per unit or service is 1.
Brain Flex discussion
Calculate the Percentage Defective, DPU, DPO, DPMO of
the following situation.
100 services are randomly selected and inspected. Each service
has 5 defect opportunities (A, B, C, D, E).
20 services are found defective (non conformant).
Total of defects found in these defective 20 services is 40 defects.
Calculate:
• Percentage Defective.
• DPU
• DPO
• DPMO.

R:
• No. of defectives = 20
• Fraction defective = 20/100= 0.20
• % defective = 0.20 x 100 = 20%
• No. of defect opportunities = 5 x 100 = 500
• DPU = 40/100 = 0.40 defects per unit
• DPO = 40/500 = 0.08
• DPMO = 0.08 x 1,000,000 = 80,000 DPMO
Continuous Improvement &
Six Sigma Green Belt
Certification
Virtual Session 3 (Keisen v.2016.03.01k)
 Video
Different problems and solutions
 Video: Process Variation vs Specs

• Difference between process variation and

specifications.
– Use of Quincuncx to explain:
• Variation in a process vs. Specifications (technical or
customer defined).
• 3 types of problems (out of specifications).
• How to reduce variation? = Control of more variables.
 Video: Process Variation vs Specifications

• Different problems = Different Solutions

1 2 3
BIAS DISPERSION ABNORMALITY
Deviation vs Center (Assignable cause)
Process distribution, Standard Deviation & Sigma Level

5 Standard Deviations AWAY

from the specification
SIGMA level SIGMA LEVEL = 5 Sigma
measures the One Standard Deviation
distance to a
specification
Six
or standard Standard
in terms of Deviations
sigmas 99.7%

Mean Specification or
Central tendency Standard to comply
 SIGMA LEVELS at GLANCE
One Standard Deviation Specification
or Standard to
Six comply Specification
Standard or Standard to
Deviations comply
99.7% One Standard Deviation

Six
Standard
Deviations
Mean 99.7%
Central tendency

3 Standard Deviations AWAY

from the specification
Mean
SIGMA LEVEL = 3 Sigma
Central tendency
6 Standard Deviations AWAY
from the specification
SIGMA LEVEL = 6 Sigma
What is Six Sigma Level
Sigma Level versus Defects per Million Opportunities (DPMO)

Sigma Level versus DPMO

Costs of bad quality
Quality Costs (Bad Quality) DPMO* **

> 50% of sales (Out of the market) 697.672 1

30-40% of sales (Non competitive) 308.537 2
20-30% of sales 66.807 3
15-20% of sales (Average organization) 6.210 4
10-15% of sales 233 5
3-10% of sales (World class leader) 3,4 6

* DPMO: Defects per Million of Opportunities

** Average Sigma Level in Most Relevant processes of the organization

57
 What is Six Sigma Improvement Process?

• Six Sigma was originally developed by Motorola, led by its Chairman Bob Galvin, as a
company-wide activity in the late 70s.
• It uses statistical tools to identify and eliminate variation.
• Six Sigma is developed as a “Top Down” methodology in 1987.
• Six Sigma is a set of activities to achieve a financial impact (profit and cost reduction)
throughout the entire organization using statistical methods, evidence-based
administration and policy alignment of senior management.
• The fundamental structure and the methodology, matures by mid 90's.
• Many success stories have organizations worldwide.
• Actually, it is considered a one of the methods to solve problems for Continuous
Improvement activities.
 History of Six Sigma
A History with Periods

1920s 1940s 1950s 1979 1986 1999

W. A. Shewhart W. E. Deming Made in Japan Motorola

Statistics can be used
to determine
production quality and
productivity.
Shewhart’s theories Deming gives In 1979, after experiencing
can also be applied to management lectures aftermarket quality control
management in Japan on issues, 2 engineers create
techniques. management and the basis for Six Sigma.
improving quality.
Six Sigma Improvement Process
Excellence Disciplines

Waste Problem
Reduction Solving Steps:
(Lean) DMAIC

PROCESS

Process Excellence and

Process Documentation
 How CI & Six Sigma Work

Analysis of the
Business Problem Cause Analysis Business Solution
Solutions
Creating a problem Testing and Root Implementing
Identifying key
statement and Cause Analysis solutions and
solutions to root
identifying problem (RCA). standardization for
causes through
magnitude & sustainability
statistical
scope.
analysis.
Business Statistical Problem & Causes & Statistical Business Solution
Problem Causes Solutions & Control
The Focus of CI and Six Sigma
Six Sigma mathematics

Understanding the factors

o Y is the outcome or result desired
o X is/are the factors that affect the result Y
o Ɛ is the error of the function
o f is the change (transformation) fuction to be
applied

FOCUS ON THE CAUSE (X),

not the Result (Y).
From facts to decision making

FACTS What to control?

What do I want to know?
DATA How to organize all data?
What do I want to know?
ORGANIZATION
How to interpret results?
INFORMATION
What do I want to know?

DECISION MAKING
Data Types
Measuring and identifying the results

Qualitative Data
Subjective and not Quantitative
measured or Data
counted objectively Objective and
measured or
Ej: Type of claim, counted
description of a
process Ej. Number of
claims, process
lead time
What is Statistics?
We have plenty of data The practice of collecting and analyzing numerical data
in large quantities requires tools for the data
organization and key decision making.

Customer Surveys
Transactional Data

Marketing
Personal Information
Information

Key Questions:
o How can we make sense out of all this
data?
o How do we differentiate valid from
flawed claims?
Descriptive Statistics
Simply Describing the Data

Objetive

Measures of Measures of
Central Tendency Dispersion / Variation

Standard
Mean Median Mode Quartiles Range Variance
Deviation
Measures of Central Tendency

MEAN OR AVERAGE.
27.9, 28.0, 28.8, 28.1, 28.0, 27.6, 27.9, 28.5, 28.1, 27.8

x1  x 2  x 3  ...  x n x
i
i
x 
n n

( 27.9  28.0  28.8  28.1  28.0  27.6  27.9  28.5  28.1  27.8)
x   28.07
10
 Measures of Central Tendency
MEDIAN
27.6 27.8 27.9 27.9 28.0 28.0 28.1 28.1 28.5 28.8

Median is the middle number in the data set when arranged in ascending order (small to
large) when odd number of observations.
If there are even number of observations, then the median is the average of the two middle
values.
Our set of data has even number of observations son arranging them, the median is:

( 28.0  28.0)
x~   28.00
2
 Measures of Central Tendency
MODE

27.9, 28.0, 28.8, 28.0, 28.0, 27.6, 27.9, 28.5, 28.0, 27.8

The mode is the data point having the highest frequency (máximum occurrences).
For our given data set, the mode is:

Mode = 28.0
 Measures of Central Tendency
QUARTILES
27.6 27.8 27.9 27.9 28.0 28.0 28.1 28.1 28.5 28.8

A quartile is any of the three values which divide the sorted data set into four equal parts, so that each part
represents one fourth of the sampled population.

• First Quartile (Q1) = Lower Quartile = Cuts off lowest 25% of data = The Median value of the first half of
data. I our data set, Q1 = 27.9
• Second Quartile (Q2) = Median = Cuts data set in half = 50% of data = The Median value of whole data. I
our data set, Q2 = 28.0
• Third Quartile (Q3) = Upper Quartile = Cuts off highest 25% of data or lowest 75% = The Median value
of the second half of data. I our data set, Q3 = 28.1

• Interquartile Range (IQR) is the difference between the upper and lower quartiles = Difference between
Third Quartile and First Quartile of a data set (IQR = Q3 - Q1). In our data set, IQR = 0.2
Measures of Dispersion / Variation
RANGE (R).
27.6 27.8 27.9 27.9 28.0 28.0 28.1 28.1 28.5 28.8

Range is defined as the difference between the largest value and the smallest value in
the data set.

R = Max Value – Min Value

R = 28.8 – 27.6 = 1.2
 Measures of Dispersion / Variation
VARIANCE (V)
Variance is defined as the square of Standard Deviation = σ2
Represents a measure of variation from the mean of a data set. It is the average of the Sum of Squares (S)
defined as the summation of the squares of the differences of each data from the mean of the data set.

27.9, 28.0, 28.8, 28.1, 28.0, 27.6, 27.9, 28.5, 28.1, 27.8
If mean of data is 28.07, the Sum of Squares is calculated as follows:
(27.9-28.07)2+(28.0-28.07) 2+(28.8-28.07) 2+(28.1-28.07) 2+(28.0-28.07) 2 +(27.6-28.07) 2 +(27.9-28.07)
2
+(28.5-28.07) 2+(28.1-28.07) 2+(27.8-28.07)2=1.08

Variance = =0.12
 Measures of Dispersion / Variation
STANDARD DEVIATION (σ)
Standard Deviation can be interpreted as the “average” distance of the individual observations from the
mean.

27.9, 28.0, 28.8, 28.1, 28.0, 27.6, 27.9, 28.5, 28.1, 27.8

If mean of data is 28.07, the Sum of Squares is calculated as follows:

0.346

The Standard Deviation is an accurate measure to understand how spread out the data are from the mean
so, the greater the Standard Deviation is, the greater the spread in the data.
 Activity
Applying Descriptive Statistics
 How to calculate with MS Excel?
Function Excel English Excel Spanish

MEAN AVERAGE (data1, data 2, …) PROMEDIO (dato1, dato 2,

…)
MEDIAN MEDIAN (data1, data 2, …) MEDIANA (data1, data 2, …)

MODE MODE (data1, data 2, …) MODA (data1, data 2, …)

QUARTILE QUARTILE (Array, quart) CUARTIL (Matriz, cuartil)

VARIANCE VAR (data1, data 2, …) VAR (dato1, dato2,...)

STANDARD DEVIATION STDEV (data1, data 2, …) DEVEST (dato1, dato2,…)

Array / Matriz: data1, data2, data3, ……
Quart / Cuartil: 0, 1, 2, 3 or 4
 Homework
What can we stabilize +improve?

• Simply watch your daily work and understand

“Your Hidden Factory” .
• Carefully observe your current situation and
take notes.
• Collect process data and calculate central
distribution and dispersion statistics.
• Write all your findings, and discuss with your
peers and managers.

• Note: All actions or improvement ideas you may

discover, must be fully discussed and approved
with your manager.

• This homework wants all participants to apply

learned concepts and start to discover
improvement opportunities. Not to solve
them
Thank you