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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



    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 is a Business Philosophy
History

    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 Tool
Expectations of People Capability
 LEVEL                   CONTENT                 COMPETENCY
                                             Everybody should
                     Characterize &
50,000 feet view
                                             understand, use & teach
                     Optimize

                                             Executives - understand
                     Define, Measure,
500 feet view
                                             Managers - understand,
                     Analyze, Improve &
                                             use and teach (YB)
                     Control

                                             Managers understand,
                     3 + 12 step process
5 feet view
                                             Project Leaders
                                             understand, use and
                                             teach (GB/BB)

                                             GB/BB understand, use
                     Tools (info synthesis
Ground level
                                             MBB teach
                     and statistics)

                   Applicable at all levels
The Standard Deviation


                                                  s = S (X –              2
                                                                        X)
                                             m
         1 Sigma - 68%
                                                         n-1
         2 Sigma - 95%
         3 Sigma - 99.73 %




                                                 1s
                                                                 p(d)

Upper Specification Limit (USL)
                                             T                USL
Target Specification (T)
Lower Specification Limit (LSL)
Mean of the distribution (m)

                                                      3s
Standard Deviation of the distribution (s)
What Is Six Sigma

          A 3s process because 3 standard deviations
                  fit between target and spec
Before
                Target              Customer
3s                                 Specification


                    1s
                                               0.27% Defects up-to 6.6 %
                         2s

                              3s


                                                                                Customer
                                                                               Specification
                                                       Target

                                                                                       After
                                                                                       6s !
                                                          1s
                                                            2s
                                                                                   No Defects!
                                                              3s
                                                                4s
                                                                     5s
                                                                          6s



         Reducing Variability Is The Key To Six Sigma
The Focus of Six Sigma




                               f (X)
            Y
                                  X1 . . . XN
         Dependent
                                  Independent
         Output
                               
         Effect                     Input-Process
        Symptom                   Cause
        Monitor                   Problem
                                   Control
Would you control target or the shooter to get the Gold Medal?
The Eye of the Beholder

    Customer’s View                         How did Supplier influence my
                                            A C Performance?
                                            Handling Defects found at my end



Customer
Process
                            A           B           C




       Supplier Process


            How did I do against my
                                                             Supplier’s
            A B Obligations?
                                                             View
            Handling Damage at my end
Focusing on Average

     Average
      River
    Depth -4ft




Focus on Average can turn your business red
The Need for Six Sigma

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 DMAIC Methodology
                                                    OUTPUT
            INPUT                   STEP


                                                You have a problem
                                    Define
     Identify Project, People and             definition and a thorough
               Process                             execution plan


       Ensure you have output                     You ensure reliable
                                    Measure
     measures for process and                   analyses and decisions
    reliable ways of measuring it


                                                  You understand the
Find the gaps between current and
                                    Analyze          problem now
            final states


                                                 You have the solution to
                                    Improve
  Find root causes and develop
                                                      the problem
             solution


   Communicate, standardize and               You have ensured sustained
                                    Control
    document the improvement                         improvement
Where to apply…..

... Can Be Applied To Every Business Function
                 Marketing              Engineering




                                                          Purchasing
  HR

                             6 Sigma
                             Methods


       Finance                                        Manufacturing



                             Software
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.
The Define Phase
                          Grow
Divisional directive    revenues
                                   1. How does the customer
                                   view Dabbawala’s Quality?
Improve
                Plant objectives
 Sales
                                   2. Who are the stakeholders -
                                   Customer and Process
                                   Improvement Team?
                        Get more
  Functional goals       orders

                                   3. Which of his processes
                                   should he try to improve in
 So what’s                         order to improve Sales?
                  Employees
    new
The Define Phase - Step A

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 B

B. DEVELOP TEAM CHARTER:

The Business Case
   Why should the project be done

Problem and Goal Statement
   Description of the problem/opportunity

Roles and Responsibilities
    The 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 improved
Define boundaries of project


                        SIPOC
                        Stratification Analysis
                        Contract 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
                                                     West and North
             South, East and      West and North
   Geography                                         Delhi are sub-
             Central Delhi        Delhi
                                                     contracted
                                  Mixups, Hygiene,
   Output      Delivery time
                                  Temperature
                                                     Premium service
               Lower and Middle
   Customer                       Higher Income      for higher
               Income
                                                     income group
                                                     Increased
   Time        After Aug 09       Before Aug 09      employees in
                                                     Aug 09
The Define Phase - Summary

The Define phase is owned                                   Grow
                                 Divisional directive
by the Project Sponsor. The                               revenues
three steps of the Define
phase are:                        Widen
                                 Customer
                                                  Plant objectives
                                   Base
1. Identify Project CTQ
2. Develop Team Charter
3. Define Project Scope                                   Improve
                                                          Delivery
                                   Functional goals       process
               VOC, Affinity
               Diagram,
                                     Reduce
        CTQ Tree, Gantt
                                   variation in     Employees
Chart, SIPOC, Stakeholder         delivery time
Analysis, TMAP, Stratification
               Analysis
The Measure Phase - Step 1


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 2

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 time
   2. Get the allowable variation on Y - +/- 30 minutes



                                          Loss  (Deviation)2



                                   Loss
   VOC
   Competitive Benchmarking


                                                                Y
                                                Target
The Measure Phase - Step 2
                          The customer
                            tolerance
                          window is 30
                           minutes on          USL
               LSL
                           either side




 Customer                                            Customer
 does not                                            does not
                           This is the
want earlier                                         want later
                              target
 than this                                           than this
                          delivery time




                                          15    30    45
       45       30   15       0
     EARLY DELIVERY                       LATE DELIVERY
                           (MINUTES)


            Visualize customer requirements
The Measure Phase - Step 2


Preparation for data collection:

    1. The Y or the Delivery Process Output
    2. The Xs or the Inputs to the Delivery Process

Generate a list of Xs
                         Brainstorming
                         Process Map (PMAP)
                         Failure Modes Effects Analysis (FMEA)
                         Cause & Effect Diagram or Fishbone
                         Quality Function Deployment (QFD)
                         Prioritization Matrix
                         Check-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.


                                             NO. OF LATE DELIVERIES
        C a te g o rie s              Jan 6                 Jan 7              Jan 8          Jan 9      T o ta l
        M isin te rp re te d   llll   llll    llll   llll    llll   l   llll    llll   llll        lll    47
        Label                                                           llll
        T raffic               llll   lll            llll    llll       llll           ll                 24

        P a rk in g            lll                   llll      ll       ll             llll    l          18

        L a rg e O rd e r      llll                  lll                llll           ll                 15

        L o c a tin g h om e   ll                    l                  l              lll                  7

        O th e rs              l                                        ll             l                    4




          Prepare to collect data on the Xs also !
The Measure Phase - Step 3

3. EVALUATE MEASUREMENT SYSTEM:

Measurement system may
introduce variation into data

Actual process variation +
measurement variation =
data

Identify and remove
contribution to variation from
                                       CAUTION: Objects in mirror
measurement system                     are closer than they appear

Ensure reliable data
MSE, 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 characteristic
2. Define Performance Standards
3. 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.
The Analyze Phase - Step 1


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:
                         Histogram
                         Box and Whisker plot
                         Dot plot
                         Standard Deviation
                         Variance
                         Sum of Squares
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 Delivery time   Target time Delivery time   Target time Delivery time
    hrs          hrs            hrs          hrs            hrs          hrs
   12:30        12:18          13:00        12:38          13:30        13:45
   12:30        12:26          13:00        13:09          13:30        13:21
   13:30        13:34          13:00        12:49          12:00        12:17
   13:30        13:42          13:00        13:05          12:00        11:58
   13:00        13:07          13:30        13:31          12:00        12:17
   13:00        13:06          12:00        12:04          12:00        11:46
   13:30        13:23          12:00        12:08          12:00        11:53
   13:30        13:41          12:00        12:10          12:30        12:33
   12:30        12:26          13:00        13:18          12:30        12:30
   12:30        12:37          13:00        13:01          13:30        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
                                      -25   -15               15      25
                                                  -5    5
of stacked up points
The Analyze Phase - Step 1
                                                m

                                                                Dabbawala has an
NUMBER OF DATA POINTS

                                                             average delivery time (m)
                                                               2 minutes late and a
                                                   s         standard deviation (s) of
                                                                   10 minutes




                                               0
               45            30       15                15        30        45
                        EARLY DELIVERY                 LATE DELIVERY
                                           (MINUTES)


                                  Measure the process output
The Analyze Phase - Step 1
           Customer tolerance
                                             m
Z=    Process standard deviation
                                                            USL
                       LSL


          30 minutes
     Z=
                                                s
          10 minutes
                                                                    Z=3




                                            0
           45          30          15                15      30     45
              EARLY DELIVERY                        LATE DELIVERY
                                        (MINUTES)

                          Measure the Process Output
The Analyze Phase - Step 1


                     Defects per
                                     It is cost
        Process        Million
                                    effective to
       Capability   Opportunities

           2        308,537
                                     Inspect in
                                       Quality
           3          66,807

           4           6,210        Manufacture in
                                       Quality

           5              233
                                      Design in
                                       Quality
           6               3.4

Higher Z implies lower defects
Getting the Competitive Edge

   Sweet Fruit
   Design for Processability



                     5 s Wall, Improve Designs

        Bulk of Fruit
        Process Characterization
        and Optimization

                   4 s Wall, Improve Processes

                      Low Hanging Fruit
                      Seven Basic Tools


                    3 s Wall, Beat Up Suppliers

                                          Ground Fruit
                                          Logic and Intuition




                                                Mikel Harry, 1994
Industry Benchmarks

Do you know the Sigma capabilities of the following processes?

                                             Sigma capability, Z
U.S. Manufacturing industry average                 4.0

Japanese manufacturing industry average             5.5

Flight fatality in airline industry                 6.4

Airline Baggage handling                            3.2

Doctor prescription writing                         2.8

Tax advice by Internal Revenue Service in U.S.      2.5

                    Six Sigma is a Metric
The Analyze Phase - Step 2

5. DEFINE PERFORMANCE OBJECTIVES
      Process Off Target                             Excessive Variation in Process
                                                                T a rg e t
                T a rg e t




                                                        LSL                  USL
          LSL                USL


Center                                                          Reduce
                                   Target
Process                                                         Spread



                                                                Hypothesis testing
                        LSL                    USL


                  Understand your Problem
Quiz - Characterize
Six Sigma is a                                What is the Y?
A. Statistical Quality Tool                   A. Measurable Process Output
B. Business Philosophy                        B. Voice of the Customer
C. U.S. Management style                      C. Process Input

The goal of Six Sigma is to                   Who gives the USL and LSL?
A. Reduce defects to 3.4 per million          A. Management
B. Improve products                           B. Customer
C. Reduce variation                           C. Derived from the process data

In the Pizza Delivery Service example,        In the example, the Voice of the
what is the CTQ?                              Customer is characterized by
A. Lunch                                      A. Delivery time
B. Time                                       B. No. of deliveries made
C. Delivery                                   C. Tolerance around the Target

If a process is Six Sigma (Z=6), it implies   In the example, the delivery service is
A. Process is 99.99% good                     characterized by
B. Products are 99.99% defect free            A. Mean delivery time
C. There are only 3.4 defects in a million    B. Tolerance around the Target
opportunities                                 C. Mean & variation of the delivery time
The Analyze Phase - Step 3


6. IDENTIFY SOURCES OF VARIATION
To find root causes or Xs

                Fishbone or C&E Diagram (Ishikawa)
                PMAP
                FMEA
                QFD

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 7 Basic Tools - 4
         FISHBONE
       MACHINE                MOTHER NATURE                         MATERIALS
                                                                  Sacks
                   Too much traffic                                                Run out of storage
                                                                too small
                                Weather                                            space on vehicles
  Unreliable bikes
                                                             Large items
                                  Bus service
                                                           difficult to carry                         Too few delivery
                                  unreliable in
    No money for
                                                            in bus /bikes                                 persons
                                  peak hours
       repairs
                                                                                                 Too many orders
                                                                            Too many
                                        Parking space
      Delivery persons own junk                                                                    per person
                                                                              sacks
                                          problem
                                                                                                                Delivery
                                     Don’t know                                                                  Time
                                                                       Cant locate
            Delivery person
                                        routes                       employees homes
          does not show up
                                                                                            Poor handling of large orders
                                     High turnover
                                                          Not on std routes
No training                                                                                                Too few
                        Delivery person gets lost
                                                                                                           delivery
                                 Did not             Poor                                                  persons
                                                                                Uneven distribution
    No                         understand         dispatching
                                                                                 of delivery loads
 teamwork                        labels
                Get wrong
                                                    Did not
               information
                                                  understand    METHODS
       MAN            MEASUREMENT                   labels



                Develop a list of Xs that possibly affect Y
The Improve Phase - Step 1

7. SCREEN POTENTIAL CAUSES

To find the Vital Few Xs and separate it from the Trivial Many
                         Pareto
                         ANOVA (Analysis of Variance)
                         Regression
                         Chi-Square tests


Systematic data generation (if historical data is not sufficient)
                       Design of Experiments (DOE)




      Statistical Analysis to identify Vital Few Xs
The 7 Basic Tools -5

PARETO
This is also called the Pareto Principle or the 80/20 rule and is used
to identify the Vital Few Xs.

                        Others

                      Location
                     Order Size
                       Parking

                        Traffic

                         Label




Cut-off level to be decided by team consensus based on
    Process knowledge
    Resource availability
The Improve Phase - Step 2

8. DISCOVER CAUSAL RELATIONSHIPS

To find out effect of Xs on the Y




                                    Y




   Regression
   Scatter Diagram                      X2
                                                 X1
The 7 Basic Tools - 6
SCATTER DIAGRAM
A Scatter Diagram is a graph that shows the relationship between
two numerical variables, X and Y




                                  DELIVERY TIME SPAN
It is used to look for a cause
and effect relationship
between the two Numerical
variables.


                                                       NO. OF PIZZAS / DELIVERY PERSON

In this example, the Scatter Diagram shows that the Delivery time is
less if the number of lunches per delivery person is less.
The Improve Phase - Step 3


       9. ESTABLISH OPERATING TOLERANCES

                      y

                                                  y  f x 
                USL
DELIVERY TIME




                LSL


                                                          x
                              xL                  xU
                                        xT
                      NO. OF PIZZAS PER DELIVERY PERSON
The Control Phase - Step 1


10. VALIDATE MEASUREMENT SYSTEM ON X


Ensure noise from   LSL                               USL
measurement system
                                  sprocess
on X is small
compared to process
variation


                                                 s Measure
                                  smeasurement
MSE, GR&R
Test - Retest,
Kappa Method,
Intra Class Correlation
                             Tolerance
The Control Phase - Step 2

11. ESTABLISH NEW PROCESS CAPABILITY




                                         USL
         LSL


                                                 Z = 4.5




                         0
  45     30     15                15      30     45
    EARLY DELIVERY               LATE DELIVERY
                     (MINUTES)
The Control Phase - Step 3

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 Xs
2. Documentation of Control Plan
3. Update of process documents such as PFMEA
4. Error Proofing
5. Standardization
The 7 Basic Tools - 7

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



                                 30
            No. lunches/person




                                 20


                                 10


                                  0
The DMAIC Steps and Deliverables
STEP                                        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 factors

7. 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 approach
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 of                The Pareto principle is
A. Define and Measure                        A. Also called the 80/20 rule
B. Define, Measure and Analyze               B. Used to identify the Vital Few
C. Define, Measure and part of Analyze       C. Useful in the Analyze phase

Optimize part consists of                    Which of the following tools is used to
A. Analyze, Improve and Control              generate data?
B. Improve and Control                       A. Analysis of Variance (ANOVA)
C. part of Analyze, Improve and Control      B. DOE
                                             C. Regression
In Six Sigma, Xs are
A. Unknown variables                         Which of the following cannot identify the
B. Excess variation                          Vital Few Xs?
C. Process Inputs                            A. Analysis of Variance (ANOVA)
                                             B. DOE
Which of the following is used to list Xs?   C. Regression
A. DOE
B. Fishbone                                  A Six Sigma GB project has to
C. Pareto                                    A. Finish in 3 months
                                             B. Show dollar savings
                                             C. Address the variation issue
SECTION B



       SIX SIGMA
ROLES & RESPONSIBILITIES
Roles and Responsibilities
Executive Champion
     Responsible for providing resources to BB/GBs
     Help in team selection
     Track progress of project
     Generally is supervisor of BB/GB. May help in selection of the project
Sponsor
     Call for need of project (Project identification)
     Beneficiary of the project
     Validate current status and status after completion of project
     Allocates resources for the project
     Ensure compliance to controls established as a result of the project
Project Leader (Black Belt / Green Belt)
     Lead the project
     Ask for resources required
     Call meeting of stakeholders and seek help from EC when stakeholders are
     not responding
     Ensure team involvement and sponsor’s buy in for solution
     Publish weekly progress report & call for help when required
Roles and Responsibilities

Deployment Champion
      Mentor and guide BBs/GBs
      Provide technical help when BBs/GBs reach a roadblock
      Publish Summary report of all projects
      Raise alarm when things are not moving
MBB
      Train BB/GB
      Assess the skills of BB/GB
      Certification of GBs and BBs after completion of projects
      Deployment of Global policies and procedures
CFO/Finance
      Assess the saving potential at start of project
      Validate savings against the targets achieved at completion of project
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.
The GB Certification Map
            Basic statistics training (not mandatory for Certification)
            Six Sigma GB Training
                Project Application
                                                              Achieved a
Six Sigma




                                                             score of 5 or                      Technical
                                                                                                                        A
                                                             greater in all                    Certification
                                                                                     Yes
                                                              tool sets?
                    10 weeks (3 - 5 day training)                                    Based on demonstration of the Six
                                                                                     Sigma tools.
                         3 months avg.                                                    • Occurs during project reviews and
                                                                      No                    on-site visits
                                                                                          • Instructor or MBB is responsible
                                                     Improve Tools and                      for technical certification.
                                                                                          • Evaluation form sent to GB and
                                                     Application to Project
                                                                                            Champion after each session.

                         Project Completed
                          and Final Report
                                                                                Six Sigma Green Belt and
   A                       Submitted and
                            Approved by                Yes                    I & CIM Associate Certification
                            Sponsor and
                              Finance


                                      No

                    Complete Project and
                    Submit Final Report
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 !
Six Sigma Yellow Belt

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Six Sigma Yellow Belt

  • 1. SIX SIGMA YELLOW BELT TRAINING Sudhakar SR
  • 2. 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
  • 3. Overview Section A: Six Sigma Concepts Section B: Six Sigma Roles and Responsibilities
  • 5. 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 is a Business Philosophy
  • 6. History 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 Tool
  • 7. Expectations of People Capability LEVEL CONTENT COMPETENCY Everybody should Characterize & 50,000 feet view understand, use & teach Optimize Executives - understand Define, Measure, 500 feet view Managers - understand, Analyze, Improve & use and teach (YB) Control Managers understand, 3 + 12 step process 5 feet view Project Leaders understand, use and teach (GB/BB) GB/BB understand, use Tools (info synthesis Ground level MBB teach and statistics) Applicable at all levels
  • 8. The Standard Deviation s = S (X – 2 X) m 1 Sigma - 68% n-1 2 Sigma - 95% 3 Sigma - 99.73 % 1s p(d) Upper Specification Limit (USL) T USL Target Specification (T) Lower Specification Limit (LSL) Mean of the distribution (m) 3s Standard Deviation of the distribution (s)
  • 9. What Is Six Sigma A 3s process because 3 standard deviations fit between target and spec Before Target Customer 3s Specification 1s 0.27% Defects up-to 6.6 % 2s 3s Customer Specification Target After 6s ! 1s 2s No Defects! 3s 4s 5s 6s Reducing Variability Is The Key To Six Sigma
  • 10. The Focus of Six Sigma f (X) Y   X1 . . . XN Dependent   Independent Output   Effect Input-Process  Symptom  Cause  Monitor  Problem  Control Would you control target or the shooter to get the Gold Medal?
  • 11. The Eye of the Beholder Customer’s View How did Supplier influence my A C Performance? Handling Defects found at my end Customer Process A B C Supplier Process How did I do against my Supplier’s A B Obligations? View Handling Damage at my end
  • 12. Focusing on Average Average River Depth -4ft Focus on Average can turn your business red
  • 13. The Need for Six Sigma 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
  • 14. 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
  • 15. The DMAIC Methodology OUTPUT INPUT STEP You have a problem Define Identify Project, People and definition and a thorough Process execution plan Ensure you have output You ensure reliable Measure measures for process and analyses and decisions reliable ways of measuring it You understand the Find the gaps between current and Analyze problem now final states You have the solution to Improve Find root causes and develop the problem solution Communicate, standardize and You have ensured sustained Control document the improvement improvement
  • 16. Where to apply….. ... Can Be Applied To Every Business Function Marketing Engineering Purchasing HR 6 Sigma Methods Finance Manufacturing Software
  • 17. 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.
  • 18. The Define Phase Grow Divisional directive revenues 1. How does the customer view Dabbawala’s Quality? Improve Plant objectives Sales 2. Who are the stakeholders - Customer and Process Improvement Team? Get more Functional goals orders 3. Which of his processes should he try to improve in So what’s order to improve Sales? Employees new
  • 19. The Define Phase - Step A 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.
  • 20. The Define Phase - Step B B. DEVELOP TEAM CHARTER: The Business Case Why should the project be done Problem and Goal Statement Description of the problem/opportunity Roles and Responsibilities The team, expectations and responsibilities Stakeholder Analysis, TMAP, Gantt Chart
  • 21. The Define Phase - Step C C. DEFINE PROJECT SCOPE: Identify the high level process to be improved Define boundaries of project SIPOC Stratification Analysis Contract Sheet
  • 22. 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 West and North South, East and West and North Geography Delhi are sub- Central Delhi Delhi contracted Mixups, Hygiene, Output Delivery time Temperature Premium service Lower and Middle Customer Higher Income for higher Income income group Increased Time After Aug 09 Before Aug 09 employees in Aug 09
  • 23. The Define Phase - Summary The Define phase is owned Grow Divisional directive by the Project Sponsor. The revenues three steps of the Define phase are: Widen Customer Plant objectives Base 1. Identify Project CTQ 2. Develop Team Charter 3. Define Project Scope Improve Delivery Functional goals process VOC, Affinity Diagram, Reduce CTQ Tree, Gantt variation in Employees Chart, SIPOC, Stakeholder delivery time Analysis, TMAP, Stratification Analysis
  • 24. The Measure Phase - Step 1 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.
  • 25. The Measure Phase - Step 2 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 time 2. Get the allowable variation on Y - +/- 30 minutes Loss  (Deviation)2 Loss VOC Competitive Benchmarking Y Target
  • 26. The Measure Phase - Step 2 The customer tolerance window is 30 minutes on USL LSL either side Customer Customer does not does not This is the want earlier want later target than this than this delivery time 15 30 45 45 30 15 0 EARLY DELIVERY LATE DELIVERY (MINUTES) Visualize customer requirements
  • 27. The Measure Phase - Step 2 Preparation for data collection: 1. The Y or the Delivery Process Output 2. The Xs or the Inputs to the Delivery Process Generate a list of Xs Brainstorming Process Map (PMAP) Failure Modes Effects Analysis (FMEA) Cause & Effect Diagram or Fishbone Quality Function Deployment (QFD) Prioritization Matrix Check-sheet
  • 28. 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. NO. OF LATE DELIVERIES C a te g o rie s Jan 6 Jan 7 Jan 8 Jan 9 T o ta l M isin te rp re te d llll llll llll llll llll l llll llll llll lll 47 Label llll T raffic llll lll llll llll llll ll 24 P a rk in g lll llll ll ll llll l 18 L a rg e O rd e r llll lll llll ll 15 L o c a tin g h om e ll l l lll 7 O th e rs l ll l 4 Prepare to collect data on the Xs also !
  • 29. The Measure Phase - Step 3 3. EVALUATE MEASUREMENT SYSTEM: Measurement system may introduce variation into data Actual process variation + measurement variation = data Identify and remove contribution to variation from CAUTION: Objects in mirror measurement system are closer than they appear Ensure reliable data MSE, Gage R&R, Test – Re- test, Kappa Method, Intra- Class Correlation
  • 30. 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 characteristic 2. Define Performance Standards 3. 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.
  • 31. The Analyze Phase - Step 1 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: Histogram Box and Whisker plot Dot plot Standard Deviation Variance Sum of Squares
  • 32. 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 Delivery time Target time Delivery time Target time Delivery time hrs hrs hrs hrs hrs hrs 12:30 12:18 13:00 12:38 13:30 13:45 12:30 12:26 13:00 13:09 13:30 13:21 13:30 13:34 13:00 12:49 12:00 12:17 13:30 13:42 13:00 13:05 12:00 11:58 13:00 13:07 13:30 13:31 12:00 12:17 13:00 13:06 12:00 12:04 12:00 11:46 13:30 13:23 12:00 12:08 12:00 11:53 13:30 13:41 12:00 12:10 12:30 12:33 12:30 12:26 13:00 13:18 12:30 12:30 12:30 12:37 13:00 13:01 13:30 13:28
  • 33. 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 -25 -15 15 25 -5 5 of stacked up points
  • 34. The Analyze Phase - Step 1 m Dabbawala has an NUMBER OF DATA POINTS average delivery time (m) 2 minutes late and a s standard deviation (s) of 10 minutes 0 45 30 15 15 30 45 EARLY DELIVERY LATE DELIVERY (MINUTES) Measure the process output
  • 35. The Analyze Phase - Step 1 Customer tolerance m Z= Process standard deviation USL LSL 30 minutes Z= s 10 minutes Z=3 0 45 30 15 15 30 45 EARLY DELIVERY LATE DELIVERY (MINUTES) Measure the Process Output
  • 36. The Analyze Phase - Step 1 Defects per It is cost Process Million effective to Capability Opportunities 2 308,537 Inspect in Quality 3 66,807 4 6,210 Manufacture in Quality 5 233 Design in Quality 6 3.4 Higher Z implies lower defects
  • 37. Getting the Competitive Edge Sweet Fruit Design for Processability 5 s Wall, Improve Designs Bulk of Fruit Process Characterization and Optimization 4 s Wall, Improve Processes Low Hanging Fruit Seven Basic Tools 3 s Wall, Beat Up Suppliers Ground Fruit Logic and Intuition Mikel Harry, 1994
  • 38. Industry Benchmarks Do you know the Sigma capabilities of the following processes? Sigma capability, Z U.S. Manufacturing industry average 4.0 Japanese manufacturing industry average 5.5 Flight fatality in airline industry 6.4 Airline Baggage handling 3.2 Doctor prescription writing 2.8 Tax advice by Internal Revenue Service in U.S. 2.5 Six Sigma is a Metric
  • 39. The Analyze Phase - Step 2 5. DEFINE PERFORMANCE OBJECTIVES Process Off Target Excessive Variation in Process T a rg e t T a rg e t LSL USL LSL USL Center Reduce Target Process Spread Hypothesis testing LSL USL Understand your Problem
  • 40. Quiz - Characterize Six Sigma is a What is the Y? A. Statistical Quality Tool A. Measurable Process Output B. Business Philosophy B. Voice of the Customer C. U.S. Management style C. Process Input The goal of Six Sigma is to Who gives the USL and LSL? A. Reduce defects to 3.4 per million A. Management B. Improve products B. Customer C. Reduce variation C. Derived from the process data In the Pizza Delivery Service example, In the example, the Voice of the what is the CTQ? Customer is characterized by A. Lunch A. Delivery time B. Time B. No. of deliveries made C. Delivery C. Tolerance around the Target If a process is Six Sigma (Z=6), it implies In the example, the delivery service is A. Process is 99.99% good characterized by B. Products are 99.99% defect free A. Mean delivery time C. There are only 3.4 defects in a million B. Tolerance around the Target opportunities C. Mean & variation of the delivery time
  • 41. The Analyze Phase - Step 3 6. IDENTIFY SOURCES OF VARIATION To find root causes or Xs Fishbone or C&E Diagram (Ishikawa) PMAP FMEA QFD 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.
  • 42. The 7 Basic Tools - 4 FISHBONE MACHINE MOTHER NATURE MATERIALS Sacks Too much traffic Run out of storage too small Weather space on vehicles Unreliable bikes Large items Bus service difficult to carry Too few delivery unreliable in No money for in bus /bikes persons peak hours repairs Too many orders Too many Parking space Delivery persons own junk per person sacks problem Delivery Don’t know Time Cant locate Delivery person routes employees homes does not show up Poor handling of large orders High turnover Not on std routes No training Too few Delivery person gets lost delivery Did not Poor persons Uneven distribution No understand dispatching of delivery loads teamwork labels Get wrong Did not information understand METHODS MAN MEASUREMENT labels Develop a list of Xs that possibly affect Y
  • 43. The Improve Phase - Step 1 7. SCREEN POTENTIAL CAUSES To find the Vital Few Xs and separate it from the Trivial Many Pareto ANOVA (Analysis of Variance) Regression Chi-Square tests Systematic data generation (if historical data is not sufficient) Design of Experiments (DOE) Statistical Analysis to identify Vital Few Xs
  • 44. The 7 Basic Tools -5 PARETO This is also called the Pareto Principle or the 80/20 rule and is used to identify the Vital Few Xs. Others Location Order Size Parking Traffic Label Cut-off level to be decided by team consensus based on Process knowledge Resource availability
  • 45. The Improve Phase - Step 2 8. DISCOVER CAUSAL RELATIONSHIPS To find out effect of Xs on the Y Y Regression Scatter Diagram X2 X1
  • 46. The 7 Basic Tools - 6 SCATTER DIAGRAM A Scatter Diagram is a graph that shows the relationship between two numerical variables, X and Y DELIVERY TIME SPAN It is used to look for a cause and effect relationship between the two Numerical variables. NO. OF PIZZAS / DELIVERY PERSON In this example, the Scatter Diagram shows that the Delivery time is less if the number of lunches per delivery person is less.
  • 47. The Improve Phase - Step 3 9. ESTABLISH OPERATING TOLERANCES y y  f x  USL DELIVERY TIME LSL x xL xU xT NO. OF PIZZAS PER DELIVERY PERSON
  • 48. The Control Phase - Step 1 10. VALIDATE MEASUREMENT SYSTEM ON X Ensure noise from LSL USL measurement system sprocess on X is small compared to process variation s Measure smeasurement MSE, GR&R Test - Retest, Kappa Method, Intra Class Correlation Tolerance
  • 49. The Control Phase - Step 2 11. ESTABLISH NEW PROCESS CAPABILITY USL LSL Z = 4.5 0 45 30 15 15 30 45 EARLY DELIVERY LATE DELIVERY (MINUTES)
  • 50. The Control Phase - Step 3 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 Xs 2. Documentation of Control Plan 3. Update of process documents such as PFMEA 4. Error Proofing 5. Standardization
  • 51. The 7 Basic Tools - 7 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 30 No. lunches/person 20 10 0
  • 52. The DMAIC Steps and Deliverables STEP 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 factors 7. 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 approach
  • 53. 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
  • 54. Quiz Characterize part consists of The Pareto principle is A. Define and Measure A. Also called the 80/20 rule B. Define, Measure and Analyze B. Used to identify the Vital Few C. Define, Measure and part of Analyze C. Useful in the Analyze phase Optimize part consists of Which of the following tools is used to A. Analyze, Improve and Control generate data? B. Improve and Control A. Analysis of Variance (ANOVA) C. part of Analyze, Improve and Control B. DOE C. Regression In Six Sigma, Xs are A. Unknown variables Which of the following cannot identify the B. Excess variation Vital Few Xs? C. Process Inputs A. Analysis of Variance (ANOVA) B. DOE Which of the following is used to list Xs? C. Regression A. DOE B. Fishbone A Six Sigma GB project has to C. Pareto A. Finish in 3 months B. Show dollar savings C. Address the variation issue
  • 55. SECTION B SIX SIGMA ROLES & RESPONSIBILITIES
  • 56. Roles and Responsibilities Executive Champion Responsible for providing resources to BB/GBs Help in team selection Track progress of project Generally is supervisor of BB/GB. May help in selection of the project Sponsor Call for need of project (Project identification) Beneficiary of the project Validate current status and status after completion of project Allocates resources for the project Ensure compliance to controls established as a result of the project Project Leader (Black Belt / Green Belt) Lead the project Ask for resources required Call meeting of stakeholders and seek help from EC when stakeholders are not responding Ensure team involvement and sponsor’s buy in for solution Publish weekly progress report & call for help when required
  • 57. Roles and Responsibilities Deployment Champion Mentor and guide BBs/GBs Provide technical help when BBs/GBs reach a roadblock Publish Summary report of all projects Raise alarm when things are not moving MBB Train BB/GB Assess the skills of BB/GB Certification of GBs and BBs after completion of projects Deployment of Global policies and procedures CFO/Finance Assess the saving potential at start of project Validate savings against the targets achieved at completion of project
  • 58. 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.
  • 59. The GB Certification Map Basic statistics training (not mandatory for Certification) Six Sigma GB Training Project Application Achieved a Six Sigma score of 5 or Technical A greater in all Certification Yes tool sets? 10 weeks (3 - 5 day training) Based on demonstration of the Six Sigma tools. 3 months avg. • Occurs during project reviews and No on-site visits • Instructor or MBB is responsible Improve Tools and for technical certification. • Evaluation form sent to GB and Application to Project Champion after each session. Project Completed and Final Report Six Sigma Green Belt and A Submitted and Approved by Yes I & CIM Associate Certification Sponsor and Finance No Complete Project and Submit Final Report
  • 60. 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 !