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Folks, Get to know what Six Sigma is and also get Yellow Belt certified in few powerful slides...
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SIX SIGMA YELLOW BELT TRAINING
Sudhakar SR
Objectives
• Understand the need for Six Sigma• Explain the Six Sigma DMAIC process• Clarify the roles of the Sponsor and the Project Leader• Understand the key differences between traditional problem
solving methods and the Six Sigma approach• Demonstrate the 7 basic tools• Develop an awareness of the various Six Sigma tools and
their applicability• Outline the key attributes of a Six Sigma project
Overview
Section A: Six Sigma Concepts
Section B: Six Sigma Roles and Responsibilities
SECTION A
SIX SIGMA CONCEPTS
Six Sigma is a Business PhilosophySix Sigma is a Business Philosophy
Six Sigma
Customer focused business improvement process. Defect reduction in a process or product. Common measurement scale called the Sigma capability or Z. Six Sigma capability corresponds to an efficiency of 99.9996%.
Six Sigma was developed by Bill Smith, QM at Motorola It’s implementation began at Motorola in 1987 It allowed Motorola to win the first Baldrige Award in 1988 Several major companies in the world have adopted Six Sigma
since then .…and applied to Manufacturing processes to improve product quality
Texas Instruments, Asea Brown Boveri, AlliedSignal, General Electric, Bombardier, Nokia Mobile Phones, Lockheed Martin, Sony, Polaroid, Dupont, American Express, Ford Motor,…….
GE applied the Six Sigma methodology to improve all business processes and it became a way of running the business.
Six Sigma is a Competitive ToolSix Sigma is a Competitive Tool
History
Applicable at all levelsApplicable at all levels
Expectations of People Capability
50,000 feet view
500 feet view
5 feet view
Ground level
Characterize & Optimize
Define, Measure, Analyze, Improve & Control
3 + 12 step process
Tools (info synthesis and statistics)
Everybody should understand, use & teach
Executives - understandManagers - understand, use and teach (YB)
Managers understand, Project Leaders understand, use and teach (GB/BB)
GB/BB understand, useMBB teach
LEVEL CONTENT COMPETENCY
The Standard Deviation
m
1s
T USL
p(d)
Upper Specification Limit (USL)Target Specification (T)Lower Specification Limit (LSL)Mean of the distribution (m)Standard Deviation of the distribution (s) 3s
1 Sigma - 68%
2 Sigma - 95%
3 Sigma - 99.73 %
S (X – X)2
n-1s =
Target
CustomerSpecification
Target CustomerSpecification
1s
2s
3s
A 3s process because 3 standard deviationsfit between target and spec
3s
0.27% Defects up-to 6.6 %
Before
What Is Six Sigma
1s2s3s4s
5s6s
After
6 !sNo Defects!
Reducing Variability Is The Key To Six Sigma
The Focus of Six Sigma
· Dependent· Output· Effect· Symptom· Monitor
· X1 . . . XN
· Independent· Input-Process· Cause· Problem· Control
f (X)Y
Would you control target or the shooter to get the Gold Medal?
The Eye of the Beholder
Customer Process
Supplier Process
CA B
Customer’s View How did Supplier influence my
A® C Performance?Handling Defects found at my end
Supplier’s View
How did I do against my
A® B Obligations?Handling Damage at my end
Focusing on Average
Focus on Average can turn your business redFocus on Average can turn your business red
Average River
Depth -4ft
How are we viewed by our customers?
• Reactionary, not preventative• Adequately responsive to
customer needs• Problems not permanently
solved• Hard perennial problems not
solved. • Inconsistent• Flawed Startups
Customers look for our competitors
The Need for Six Sigma
How do we want to be viewed by our customers?
• Proactive• Quick, agile• Having robust products• System experts• Flawless during startups• Continuously improving
through an Enterprise-wide problem prevention/problem solving culture
Our Customers’ Best Supplier
The Need for Six Sigma
The DMAIC Methodology
Improve
You have a problem definition and a thorough
execution plan
Ensure you have output measures for process and
reliable ways of measuring it
You ensure reliable analyses and decisions
Identify Project, People and Process
Find the gaps between current and final states
Find root causes and develop solution
You have the solution to the problem
You understand the problem now
Communicate, standardize and document the improvement
You have ensured sustained improvement
Analyze
Control
Measure
Define
STEP OUTPUTINPUT
6 Sigma
Methods
Manufacturing
EngineeringMarketing
Purchasing
Software
HR
Finance
... Can Be Applied To Every Business Function
Where to apply…..
Example - Pizza Delivery Service
Dabbawala and Co. a fast food company, owned by Mr. Dabbawala Pizza runs a pizza delivery service in and around Delhi. Dabbawala and Co. which was doing very well over the last four years, notices a drop in sales over the past five months. Customer complaints about deliveries have been gradually on the rise. Several complaints from customers regarding irregular deliveries were bothering Dabbawala. He had increased the number of delivery personnel to improve delivery performance. But his customers were still leaving him.
Pizza Hut, a multinational fast food chain, had set up shop in downtown and was becoming more popular with the customers. Dabbawala neither had the financial muscle to match Pizza Hut’s advertising blitz nor could afford the expensive packaging to lure his customers back.
1. How does the customer view Dabbawala’s Quality?
2. Who are the stakeholders - Customer and Process Improvement Team?
3. Which of his processes should he try to improve in order to improve Sales?
The Define Phase
Grow revenues
ImproveSales
So what’s new
Get moreorders
Divisional directive
Plant objectives
Functional goals
Employees
A. IDENTIFY PROJECT CTQs:
A requirement of the customer is that the Pizza should be delivered on time. Thus for the customer, Delivery is Critical to the Quality of Dabbawala’s service (CTQ).
Voice of Customer (VOC) Affinity Diagram CTQ Tree.
The Define Phase - Step A
The Define Phase - Step B
B. DEVELOP TEAM CHARTER:
The Business CaseWhy should the project be done
Problem and Goal StatementDescription of the problem/opportunity
Roles and ResponsibilitiesThe team, expectations and responsibilities
Stakeholder Analysis, TMAP, Gantt Chart
The Define Phase - Step C
C. DEFINE PROJECT SCOPE:
Identify the high level process to be improvedDefine boundaries of project
SIPOCStratification AnalysisContract Sheet
The 7 Basic Tools - 1
STRATIFICATION ANALYSIS:Stratification analysis (Is / Is Not Matrix) is helpful in defining the conditions surrounding the problem - bounding or scoping
Is Is Not Distinctions
GeographySouth, East and Central Delhi
West and North Delhi
West and North Delhi are sub-contracted
Output Delivery timeMixups, Hygiene, Temperature
CustomerLower and Middle Income
Higher IncomePremium service for higher income group
Time After Aug 09 Before Aug 09Increased employees in Aug 09
The Define Phase - Summary
The Define phase is owned by the Project Sponsor. The three steps of the Define phase are:
1. Identify Project CTQ2. Develop Team Charter3. Define Project Scope
VOC, Affinity Diagram,
CTQ Tree, Gantt Chart, SIPOC, Stakeholder Analysis, TMAP, Stratification
Analysis
Grow revenues
Widen Customer
Base
Reducevariation in
delivery time
ImproveDeliveryprocess
Divisional directive
Plant objectives
Functional goals
Employees
1. IDENTIFY CTQ CHARACTERISTICS
Translate the CTQ to a measurable output of the delivery process
Delivery time can be measured in many ways:
1. No. of times the delivery person delivered during the shipping window (Discrete measure)
2. Time taken to travel from Dabbawala’s location to customer location (Continuous measure)
3. Actual delivery time as seen by customer (Continuous measure)
Delivery time is the Project Y.
The Measure Phase - Step 1
2. DEFINE PERFORMANCE STANDARDS:
What are the customer’s requirements on Delivery time?What is the definition of a defect?
1. Capture the Target (mean) delivery time - On time2. Get the allowable variation on Y - +/- 30 minutes
VOCCompetitive Benchmarking
The Measure Phase - Step 2
Target
Los
s
Y
Loss (Deviation)2
LATE DELIVERY
153045 15 30 450
LSL USL
Visualize customer requirementsVisualize customer requirements
Customer does not want
earlier than this
The customer tolerance
window is 30 minutes on either side
This is the target
delivery time
EARLY DELIVERY (MINUTES)
Customer does not want later than this
The Measure Phase - Step 2
The Measure Phase - Step 2
Preparation for data collection:
1. The Y or the Delivery Process Output2. The Xs or the Inputs to the Delivery Process
Generate a list of XsBrainstorming Process Map (PMAP)Failure Modes Effects Analysis
(FMEA)Cause & Effect Diagram or FishboneQuality Function Deployment (QFD)Prioritization MatrixCheck-sheet
The 7 Basic Tools - 2
CHECK-SHEET (DATA COLLECTION FORM)
Check-sheet is a data collection sheet used to record occurrences of an event to look for patterns in the data in order to quantify the problem and to facilitate understanding.
Categories Jan 6 Jan 7 Jan 8 Jan 9 TotalMisinterpretedLabel
llll llll llll llll llll l llll llllllll
llll lll 47
Traffic llll lll llll llll llll ll 24
Parking lll llll ll ll llll l 18
Large Order llll lll llll ll 15
Locating home ll l l lll 7
Others l ll l 4
NO. OF LATE DELIVERIES
Prepare to collect data on the Xs also !Prepare to collect data on the Xs also !
The Measure Phase - Step 3
3. EVALUATE MEASUREMENT SYSTEM:
CAUTION: Objects in mirror are closer than they appear
Measurement system mayintroduce variation into data
Actual process variation + measurement variation = data
Identify and remove contribution to variation from measurement system
Ensure reliable dataMSE, Gage R&R, Test – Re-test, Kappa Method, Intra-Class Correlation
The Measure Phase - Summary
A data collection plan is done in the Measure phase. It sets the expectations for the project. This phase is owned by the Project Leader. The three steps of the Measure phase are:
1. Identify CTQ characteristic2. Define Performance Standards3. Evaluate Measurement System
The list of tools available for the Measure phase are:
Brainstorming, PMAP, FMEA, MSE, GR&R, C&E Diagram or Fishbone, Quality Function Deployment or QFD, Prioritization Matrix,
Learn more about the PMAP, FMEA and MSE in the Six Sigma Green Belt Training.
4. ESTABLISH PROCESS CAPABILITY
• What are the chances of your process creating defects?• Baseline the current process:• Measure variation in current process output• Evaluate against Performance Standards
• Understand variation in your data with the help of:HistogramBox and Whisker plotDot plotStandard DeviationVarianceSum of Squares
The Analyze Phase - Step 1
The 7 Basic Tools - 3
HISTOGRAM
The Histogram is a graphical data summary tool which groups observed data into pre-defined bins in order to analyze the data values and distribution.
Target time hrs
Delivery time hrs
12:30 12:1812:30 12:2613:30 13:3413:30 13:4213:00 13:0713:00 13:0613:30 13:2313:30 13:4112:30 12:2612:30 12:37
Target time hrs
Delivery time hrs
13:00 12:3813:00 13:0913:00 12:4913:00 13:0513:30 13:3112:00 12:0412:00 12:0812:00 12:1013:00 13:1813:00 13:01
Target time hrs
Delivery time hrs
13:30 13:4513:30 13:2112:00 12:1712:00 11:5812:00 12:1712:00 11:4612:00 11:5312:30 12:3312:30 12:3013:30 13:28
The 7 Basic Tools - 3
CREATING A HISTOGRAM:
Using the concept of the late and early deliveries, take the target time as the reference, and find the number of minutes by which each delivery is late or early.
1. Subtract Target time for each data point from the Delivery time
2. Define 5 predetermined bins (class intervals) of size equal to 10 minutes, from -25 to 25 on a horizontal line
3. Place each data point vertically in a bin according to its value
4. Draw a bar equal to the height of stacked up points -25 25-15 -5 5 15
The Analyze Phase - Step 1
LATE DELIVERY
153045 15 30 450
Measure the process outputMeasure the process output
EARLY DELIVERY (MINUTES)
NU
MB
ER
OF
DA
TA P
OIN
TS Dabbawala has an
average delivery time () 2 minutes late and a
standard deviation () of 10 minutes
The Analyze Phase - Step 1
LATE DELIVERY
153045 15 30 450
Measure the Process OutputMeasure the Process Output
EARLY DELIVERY (MINUTES)
USLLSL
10 minutes
30 minutesZ =
Process standard deviation
Customer toleranceZ =
Z = 3
The Analyze Phase - Step 1
ProcessCapability
Defects per Million
Opportunities
2 308,537
3 66,807
4 6,210
5 233
6 3.4
Higher Z implies lower defectsHigher Z implies lower defects
Inspect in Quality
Manufacture in Quality
Design in Quality
It is cost effective to
Sweet Fruit Design for Processability
Bulk of FruitProcess Characterization and Optimization
Low Hanging FruitSeven Basic Tools
Ground FruitLogic and Intuition
3 s Wall, Beat Up Suppliers
4 s Wall, Improve Processes
5 s Wall, Improve Designs
Mikel Harry, 1994
Getting the Competitive Edge
Do you know the Sigma capabilities of the following processes?
U.S. Manufacturing industry average
Japanese manufacturing industry average
Flight fatality in airline industry
Airline Baggage handling
Doctor prescription writing
Tax advice by Internal Revenue Service in U.S.
4.0
5.5
6.4
3.2
2.8
2.5
Sigma capability, Z
Industry Benchmarks
Six Sigma is a MetricSix Sigma is a Metric
Target
USLLSL
CenterProcess
ReduceSpread
The Analyze Phase - Step 2
Process Off Target Excessive Variation in ProcessTarget
USLLSL
Target
USLLSL
Understand your ProblemUnderstand your Problem
5. DEFINE PERFORMANCE OBJECTIVES
Hypothesis testing
Quiz - Characterize
Six Sigma is aA. Statistical Quality ToolB. Business PhilosophyC. U.S. Management style
The goal of Six Sigma is toA. Reduce defects to 3.4 per millionB. Improve productsC. Reduce variation
In the Pizza Delivery Service example, what is the CTQ?A. LunchB. TimeC. Delivery
If a process is Six Sigma (Z=6), it implies A. Process is 99.99% goodB. Products are 99.99% defect freeC. There are only 3.4 defects in a million opportunities
What is the Y?A. Measurable Process OutputB. Voice of the CustomerC. Process Input
Who gives the USL and LSL?A. ManagementB. CustomerC. Derived from the process data
In the example, the Voice of the Customer is characterized byA. Delivery timeB. No. of deliveries madeC. Tolerance around the Target
In the example, the delivery service is characterized byA. Mean delivery timeB. Tolerance around the TargetC. Mean & variation of the delivery time
6. IDENTIFY SOURCES OF VARIATIONTo find root causes or Xs
Fishbone or C&E Diagram (Ishikawa)PMAPFMEAQFD
Fishbone (Ishikawa) is another of the 7 basic tools. It is also known as the Cause & Effect Diagram. It is a hierarchy of causes that starts with the primary cause and then steps several layers in detail to drive towards possible root causes.
The Analyze Phase - Step 3
DeliveryTime
MACHINE MOTHER NATURE MATERIALS
MAN METHODS
Poor dispatching
Delivery person gets lost
Delivery person does not show up Poor handling of large orders
Run out of storage space on vehiclesWeather
Too many sacks
Develop a list of Xs that possibly affect YDevelop a list of Xs that possibly affect Y
The 7 Basic Tools - 4
Don’t know routes
High turnover
Get wrong information
Did not understand
labelsNo
teamwork
No training
Unreliable bikes
Delivery persons own junk
Cant locate employees homes
Not on std routes
Did not understand
labels
Too few delivery persons
Uneven distribution of delivery loads
MEASUREMENT
No money for repairs
Too many orders per person
Too few delivery persons
Large items difficult to carry
in bus /bikes
Sacks too small
Bus service unreliable in peak hours
Too much traffic
Parking space problem
FISHBONE
7. SCREEN POTENTIAL CAUSES
To find the Vital Few Xs and separate it from the Trivial ManyParetoANOVA (Analysis of Variance)RegressionChi-Square tests
Systematic data generation (if historical data is not sufficient)Design of Experiments (DOE)
Statistical Analysis to identify Vital Few XsStatistical Analysis to identify Vital Few Xs
The Improve Phase - Step 1
The 7 Basic Tools -5
PARETOThis is also called the Pareto Principle or the 80/20 rule and is used to identify the Vital Few Xs.
Label
Traffic
Parking
Order Size
Location
Others
Cut-off level to be decided by team consensus based onProcess knowledgeResource availability
The Improve Phase - Step 2
8. DISCOVER CAUSAL RELATIONSHIPS
To find out effect of Xs on the Y
X1
Y
X2
RegressionScatter Diagram
The 7 Basic Tools - 6
SCATTER DIAGRAMA Scatter Diagram is a graph that shows the relationship between two numerical variables, X and Y
NO. OF PIZZAS / DELIVERY PERSON D
EL
IVE
RY
TIM
E S
PA
N
It is used to look for a cause and effect relationship between the two Numerical variables.
In this example, the Scatter Diagram shows that the Delivery time is less if the number of lunches per delivery person is less.
9. ESTABLISH OPERATING TOLERANCES
The Improve Phase - Step 3
xL xT xU
USL
LSL
x
y
xfy
NO. OF PIZZAS PER DELIVERY PERSON
DE
LIV
ER
Y T
IME
10. VALIDATE MEASUREMENT SYSTEM ON X
The Control Phase - Step 1
Measure
LSL USL
Tolerance
Ensure noise from measurement system on X is small compared to process variation
process
measurementMSE, GR&RTest - Retest,Kappa Method,Intra Class Correlation
11. ESTABLISH NEW PROCESS CAPABILITY
The Control Phase - Step 2
LATE DELIVERY
153045 15 30 450EARLY DELIVERY (MINUTES)
USLLSL
Z = 4.5
12. IMPLEMENT PROCESS CONTROL
A good Control Plan should be put in place to ensure sustained improvement. This may include:
1. Use of Control Charts to monitor Xs2. Documentation of Control Plan3. Update of process documents such as PFMEA4. Error Proofing5. Standardization
The Control Phase - Step 3
RUN CHART
A Run Chart is a time series plot of data that allows a team to study observed data for trends or patterns over a specific period of time. It captures instances when the process is changing more than statistically expected
The 7 Basic Tools - 7
0
10
20
30
No
. lu
nc
he
s/p
ers
on
The DMAIC Steps and Deliverables
A. Identify project CTQs Identify customers, customer CTQs and Business Case
B. Develop Team Charter Problem statement, Project Scope,Team, Milestones
C. Define Project Scope High Level Process Map connecting customers to process
1. Select CTQ characteristic Identify measurable characteristic of CTQ (Y)
2. Define performance standards Confirm specification limits (requirements) for Y
3. Evaluate Measurement System Ensure measurement system is capable
4. Establish process capability Baseline the current process
5. Define performance objectives Understand statistical objective - reduce variation or shift means?
6. Identify sources of variation List significant causes (Xs) or factors7. Screen potential causes Determine vital few Xs, which will be controlled
8.Discover variable relationship Find causal relationship and optimal solution
9. Establish operating tolerances Validate the relation and determine specs on Xs
10. Measurement System Evaluation on Xs Ensure X measurement is capable
11. Establish process capability Establish improved capability
12. Implement process control Document control plan
It’s a common sense approachIt’s a common sense approach
STEP DELIVERABLES
Attributes of a Six Sigma GB project
1. Customer Focused: A Six Sigma GB project should address a customer CTQ
2. Data Driven: In a Six Sigma GB project, decisions should be made using data analysis and not on gut feelings or intuitions
3. Variation reduction: Six Sigma GB projects address the issue of variation in process outputs and is aimed at reducing variation
Quiz
Characterize part consists ofA. Define and MeasureB. Define, Measure and AnalyzeC. Define, Measure and part of Analyze
Optimize part consists ofA. Analyze, Improve and ControlB. Improve and ControlC. part of Analyze, Improve and Control
In Six Sigma, Xs areA. Unknown variablesB. Excess variationC. Process Inputs
Which of the following is used to list Xs? A. DOEB. FishboneC. Pareto
The Pareto principle isA. Also called the 80/20 ruleB. Used to identify the Vital FewC. Useful in the Analyze phase
Which of the following tools is used to generate data?A. Analysis of Variance (ANOVA)B. DOEC. Regression
Which of the following cannot identify the Vital Few Xs?A. Analysis of Variance (ANOVA)B. DOEC. Regression
A Six Sigma GB project has toA. Finish in 3 monthsB. Show dollar savingsC. Address the variation issue
SECTION B
SIX SIGMA ROLES & RESPONSIBILITIES
Executive ChampionResponsible for providing resources to BB/GBsHelp in team selectionTrack progress of projectGenerally is supervisor of BB/GB. May help in selection of the projectSponsorCall for need of project (Project identification) Beneficiary of the project Validate current status and status after completion of projectAllocates resources for the projectEnsure compliance to controls established as a result of the projectProject Leader (Black Belt / Green Belt)Lead the projectAsk for resources requiredCall meeting of stakeholders and seek help from EC when stakeholders are not respondingEnsure team involvement and sponsor’s buy in for solutionPublish weekly progress report & call for help when required
Roles and Responsibilities
Deployment ChampionMentor and guide BBs/GBsProvide technical help when BBs/GBs reach a roadblock
Publish Summary report of all projects
Raise alarm when things are not moving
MBBTrain BB/GBAssess the skills of BB/GBCertification of GBs and BBs after completion of projectsDeployment of Global policies and procedures
CFO/FinanceAssess the saving potential at start of projectValidate savings against the targets achieved at completion of project
Roles and Responsibilities
Roles and Responsibilities
Yellow Belt (YB): Should understand the DMAIC process and use the Six Sigma philosophy (Stakeholder involvement).
Green Belt (GB): Should be able to use DMAIC process with basic Six Sigma tools for project execution. Lead Six Sigma projects in their functions.
Black Belt (BB): Should be able to use advanced tools in projects and teach Green Belt level techniques / tools. Identifies Six Sigma projects and leads project teams. Mentors Green Belts. Process experts in their functions.
Master Black Belt (MBB): Should be able to train Black Belts and Green Belts. Mentors Black Belt projects. Drivers of cultural change. Process experts in any function. Can develop new tools.
10 weeks (3 - 5 day training)
3 months avg.
Six Sigma GB Training
Project Application
Six
Sig
ma
Achieved a score of 5 or greater in all
tool sets?
No
Improve Tools and Application to Project
Yes
Technical Certification A
A
Project Completed and Final Report Submitted and Approved by Sponsor and
Finance
No
Complete Project and Submit Final Report
Yes
Six Sigma Green Belt and
I & CIM Associate Certification
Based on demonstration of the Six Sigma tools.
• Occurs during project reviews and on-site visits
• Instructor or MBB is responsible for technical certification.
• Evaluation form sent to GB and Champion after each session.
The GB Certification Map
Basic statistics training (not mandatory for Certification)
Summary
• Knowing Customer CTQs• Data driven improvements• Focus on the (Xs) of the process• Application of statistical tools to business problems• Understanding process capability and its impact on quality• An environment that demands only the highest performance
standards.
Success will be defined when our customers notice !