SIX SIGMA Quick Overview

Lean Six Sigma Courses in ICALMS

Why Six SigmaAn associate travels from his home to office by three different routes, viz., Route A, Route B and Route C . He starts to office at 9.00 AM and reach by 9.30AM as the customer meeting is scheduled at 9.30AM which he cant miss at any time. He has captured the travelling time for 15 consecutive days and recorded. He wants to know which route is the best route to reach office.

Sheet1

DayRoute ARoute BRoute C

Day1152842

Day2352938

Day3453140

Day4253242

Day5303038

Day 6402939

Day 7203141

Day 8253443

Day 9455043

Day 10403338

Day 11153141

Day 12202842

Day 13252838

Day 14403037

Day 15302738

450471600

Mean3031.440

Sheet2

Sheet3

Why Six SigmaRoute ARoute BRoute C15 MINS45 MINS30 MINS31.4 MINS30 MINS40 MINS27 MINS34 MINS43 MINS37 MINS

Hitting the Target (Centralizing Process)Eliminating VariationSix Sigma Shift the Mean or reduce variationSix Sigma Goal- * -

TargetReduce Variation Through Better ControlExcessive Variation creates defectsReducing Variation reducesdefectsSix Sigma Goal- * -

Technology CaseUSLMean > USL creates defectsLSLTargetShifting the mean reduces defectsShift the process mean (technology case)- * -Six Sigma Goal

Reduce VariationUSLReduceVariation

MeanShifts ForFREE!Cycle TimeCycle TimeUSLReduce process variation and shift the process mean- * -Six Sigma Goal

Reduce Variation Mean Shifts

Sheet1

DayRoute ARoute BRoute CDayRoute ARoute BRoute C

Day1152842Day1152842

Day2352938Day23529380.46666666671000000

Day3453140Day3353140466666.666666667

Day4253242Day4253242

Day5303038Day53030380.51000000

Day 6402939Day 6352939500000

Day 7203141Day 7203141

Day 8253443Day 8253443

Day 9455043Day 9355043

Day 10403338Day 10353338

Day 11153141Day 11153141

Day 12202842Day 12202842

Day 13322838Day 13252838

Day 14403037Day 14353037

Day 15232738Day 15302738

450421600415421600

Mean3030.071428571440Mean27.666666666730.071428571440

DayRoute A(Before Improvement)Route A(After Improvement)

DayRoute ARoute BRoute CDay11515

Day1152842Day23535

Day2352938Day34535

Day3453140Day42525

Day4253242Day53030

Day5303038Day 64035

Day 6402939Day 72020

Day 7203141Day 82525

Day 8253443Day 94535

Day 9455043Day 104035

Day 10403338Day 111515

Day 11153141Day 122020

Day 12202842Day 133225

Day 13322838Day 144035

Day 14403037Day 152330

Day 15232738

450415

450471600Mean3027.6666666667

Mean3031.440

Sheet2

Sheet3

Types Of VariationsCommon Cause Variation Inherent to processAlways PresentCannot eliminateRandom in NatureImprovement PlanSpecial Cause Variation External FactorsFew OccurrencesExclude/IgnoreContainment Plan

Sheet1

DayRoute ARoute BRoute CDayRoute ARoute BRoute C

Day1152842Day1152842

Day2352938Day2352938

Day3453140Day3453140

Day4253242Day4253242

Day5303038Day5303038

Day 6402939Day 6402939

Day 7203141Day 7203141

Day 8253443Day 8253443

Day 9455043Day 9455043

Day 10403338Day 10403338

Day 11153141Day 11153141

Day 12202842Day 12202842

Day 13252838Day 13252838

Day 14403037Day 14403037

Day 15302738Day 15302738

450471600450421600

Mean3031.440Mean3030.071428571440

Sheet2

Sheet3

Defects / Sigma calculationRoute A :Number Of Opportunities : 15Defects : 7DPO = 7/15 = 0.466667DPMO = 046*1000,000= 466667

Route B :Number Of Opportunities : 14Defects : 7DPO = 7/14 = .50DPMO = .50*1000,000= 5000002 Sigma = 308,000 DefectsDefect : Not Meeting Customers SpecificationUSL : 30 MinsLSL : N/ADefect > 30 Mins

Sheet1

DayRoute ARoute BRoute CDayRoute ARoute BRoute C

Day1152842Day1152842

Day2352938Day2352938

Day3453140Day3453140

Day4253242Day4253242

Day5303038Day5303038

Day 6402939Day 6402939

Day 7203141Day 7203141

Day 8253443Day 8253443

Day 9455043Day 9455043

Day 10403338Day 10403338

Day 11153141Day 11153141

Day 12202842Day 12202842

Day 13322838Day 13252838

Day 14403037Day 14403037

Day 15232738Day 15302738

450421600450421600

Mean3030.071428571440Mean3030.071428571440

DayRoute ARoute BRoute C

Day1152842

Day2352938

Day3453140

Day4253242

Day5303038

Day 6402939

Day 7203141

Day 8253443

Day 9455043

Day 10403338

Day 11153141

Day 12202842

Day 13322838

Day 14403037

Day 15232738

450471600

Mean3031.440

Sheet2

Sheet3

Alternate Method

Enter

Xbar5.494

S0.315Critical AssumptionLong Term Sigma

USL5Delete if no USL

LSLDelete if no LSL

sigma=-0.07sigmaShort Term

-1.57sigmaLong Term

-1.5682539683

0.058410937

0.941589063

N/A

N/A

N/A

0.941589063

0.058410937

5.8411%

-0.07

Alternate Method

0.0001338302000.2419707245

0.00443184840.10.10.2419707245

0.01752830050.20.2

0.05399096650.30.3

0.12951759570.40.4

0.24197072450.50.5

0.3520653268

0.3989422804

0.3520653268

0.2419707245

0.1295175957

0.0539909665

0.0175283005

0.0044318484

0.0001338302

&A

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Standard Method

General Worksheet For Calculating Process Sigma

enter

1Number Of Units ProcessedN=55

2Total Number Of Defects Made(Include Defects Made And Later Fixed)D=207

3Number Of Defect OpportunitiesPer UnitO=5

4Solve For Defects Per Million Opportunities752727

5Look Up Process Sigma In Abridged Sigma Conversion TableShort Term Sigma=0.82

Long Term Sigma=-0.68

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Curve Drawing

-400.0001338302

-300.0044318484-0.28515

10.0675675676-1.4941549086-2.500.01752830052.18708

0-1.5682539683000.241970724520.1756756757-0.9319713123-200.05399096650.59435

0-1.56825396830.110.241970724530.2837837838-0.5716375252-1.500.12951759570.58614

0-1.56825396830.240.3918918919-0.2743914879-100.2419707245-1.15936

0-1.56825396830.350.5-0-0.500.3520653268-0.85962

0-1.56825396830.460.60810810810.2743914879000.3989422804-1.53718

0-1.56825396830.570.71621621620.57163752520.500.3520653268-1.30179

80.82432432430.9319713123100.24197072450.25

90.93243243241.49415490861.500.1295175957-0.34957

200.05399096650.01385

2.500.0175283005-0.68938

300.0044318484-1.12076

400.0001338302

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- * -It is necessary to carefully distinguish the data type as most of the statistical tools are generally specific for the kind of data being collectedBroadly, data can be classified into two typesDiscrete Data - If there are only a finite number of values possible or if there is a gap between two possible valuesContinuous Data - This data type is measured on a continuum or scale and can be expressed by whole numbers or fractionsDiscrete data can often be treated as continuousData TypesAs we move right along the scale, technically discrete data can often be analyzed as Continuous. One must try to have continuous data to the extent possibleDiscrete Data : Range, Count, Binary, CategoriesContinuous Data : Temperatures, Date, Time

Finding Causes for variationsTools : Fishbone Diagram5 Whys methodControl Impact MatrixPareto ChartFactors Impacting travel timeRoad ConditionNumber Of lanes / Road WidthNumber Of SignalsNumber of Offices/SchoolsMode of TravelVehicle Condition

Imperative To Succeed In Six SigmaTechnical ImpactTeam / Organization /Cultural ImpactQ * A = EInfluence Strategy :* Quality of Six Sigma solution times its Acceptance = Effectiveness of the solutionBusinessResultsManaging Change is the Key

ProcessSTARTProcessFINISHInternal ProcessCustomer Process:Plane Out OfServiceEngineArrivesRepairs EngineShip Back to the CustomerRemove andShip EngineEngine ArrivesEngine Returnedto WingBrings In The OUTSIDE-IN PerspectiveCase Study : Customers View VOC is Important than VOP

Customers ViewThe Eye Of The BeholderVoice of the CustomerACCustomers view of the organizations performance ?

Customer ProcessOrganizations ProcessABCA B Organizations traditional view of its contribution

Having an OUTSIDE IN perspective

VOC Vs CTQVOC : Vague and not quantifiableNo Specifications and Cant be measuredExamplesI want to reach office as early as PossibleTraffic Sucks.Where is the RoadI should have started early

CTQ :Specific and QuantifiableMeasurable and improvement plan is possible ExampleThe travel time should be 30 mins maximum from house to office on all days / all through the day

How Much Sigma is good enough?99.9% is already VERY GOOD But what could happen at a quality level of 99.9% , in our everyday lives (about 4.6)?13 wrong drug prescriptions per year 10 newborn babies dropped by doctors/nurses per year Two short or long landings per year in all the airports in the U.S.

The Solution is How can we get these results ?

Cost Of Quality At Various Sigma Levels

Process Sigma (Z ST)*63.4523046,210366,8002308,000(*Values include +/- 1.5s shift)Process CapabilityProcess defects withrespect to performancestandardsIncreases In Sigma Require Exponential Defect ReductionThe Process Sigma ScaleDefects per Million Opportunities(DPMO)

Sigma Performance Levels - One To Six SigmaWhat is Six Sigma ?- * -

Optimize Process Performance ; Align with Customer NeedsCustomer CentricityProcess CapabilityVariationA philosophy of working smarter so that we make fewer mistakes and eventually no mistakes at all !! PhilosophyMetricTool Rigor Data DrivenWhat is Six Sigma ?- * -

Helps Arrive At Business Solution in a SMART WayWhat does Six Sigma Do?

DMAIC (Define, Measure, Analyze, Improve and Control)

Improvements are made to the existing process

DMADV (Define, Measure, Analyze, Design, Verify).

Is used to develop new processes/products/services to meet customer requirements

Involves a paradigm shift

DMAICDMADVSix Sigma Methodologies- * -

Six Sigma Overview: DMAIC ApproachAn Iterative Process For Making ImprovementWhat are customer expectations of the process?What is my current capability?Why, when and where do defects occur?How can we fix the process?How can we make the process stay fixed?

DMAIC - DMADV Relationship and transition points- * -Six Sigma Methodologies

WasteDelayReference : Institute for Healthcare Improvement(IHI) www.ihi.org Improve Services, Processes, Capability, Performance Lean Basic Principle

Who are the key players in Six Sigma team? Champion - Organizes and leads the initiation, deployment, and applies the Six Sigma across the organization.

Master Black Belt (MBB) - Experts for disseminating the Six Sigma Methodology throughout the organization and facilitating sharing of best practices.Black Belt (BB) - Applies the Six Sigma Methodology, Tools, and Knowledge to Six Sigma Projects.Green Belt (GB) -Executes Six Sigma projects besides his regular activities.

Team Member GB Aspirant Six Sigma awareRoles and Responsibilities- * -

Six Sigma My Roadmap ?Steps to Business Benefits

CTQ Flowdown

Bigger Ys

Voice Of The EmployeeVoice Of The CustomerVoice Of The ShareholderProject YRevenue growth / Cost ReductionCost BudgetQuality Delivery Productivity Scrap reduction Inventory cost On time delivery Customer complaints Cycle time

Key output metrics that are aligned with the strategic goals/objectives of the business. Big Ys provide a direct measure of business performance

Any parameters that influence the Y

Key output metrics that summarize process performance

Key project metric defined from the customer perspective

Business Big YsProcess YsXsRoad Map To Customer Impact- * -

Page *Step 0 - DiscoverUnderstand the PainWho is feeling the pain?How does it hurt?How does it impact the strategic objectives? (Big Ys / Little Ys)

Validate the PainCan it be measured?Is the data available? Reliable?

Scope Problem StatementWalk the processHigh level VSMWrite the problem statement

Complete the Initial CharterWho are the stakeholders?What are the goal statements?What is and is not in the scope?What is the ROI? Is there a financial impact? Customer? Operational? Resource?

Present for Approval

Project Charter CIAMDYProblem StatementsProject ScopeGoal StatementBusiness Case / Financial ImpactContext: What is the process that is at issue? (process scope)

Current Performance: Of the data we have collected, even at a high-level, what is the current state process performance?

Pain: Why is the current performance a problem and to whom?What elements/processes/activities are in scope for improvement?

What elements/processes/activities are not in scope (important enough to call out)?

Who will be impacted by the project (high-level stakeholder identification)?The goal statement should be specific and include:

What is to be improved?

What is the measure of improvement?

What is the timeline that the improvement will occur or be realized?Assuming all projects have some value, why should any effort be made to improve this process?

Financial ROI

Customer Satisfaction

Operational Effectiveness

Staff/resource DevelopmentGreen = ready to prioritize; Yellow = some Discovery left to do; Red = Not a potential BPI projectPage *

Page *Tools, Artifacts, and DeliverablesProblem StatementHigh-level VSMChampion / Process OwnerBig Y Impact (Quantifiable)Goal StatementsProject PriorityApproved Project CharterDetailed Process MapsData Collection PlanMSARun ChartsParetoHistogramRevised VSM (Cycle time)Revised CharterRoot Causes (Ishikawa)Wastes5 Whys/ 10QsScatter PlotsFMEAHypothesis TestsBrainstorming (Deep Dive)Solutions (QFD)Proof of ConceptFuture State Process MapsImprovement PlanProject PlanChange PlanControl PlanRevised FMEAControl ChartsSOPsRevised Project CitationProcess Management PlanDashboardsScorecardsControl ChartsVoC/VoBImprovement AuditFinal Project Citation0. Discover 2. Measure3. Analyze 4. Improve 5. Control Stakeholder / Heat mapVoC / VoB Affinity DiagramKano ModelCTQ TreeRoadmapRevised Project CharterDraft Project Citation1. Define

Thank You !!!

Appendix- * -

DMAIC Define Measure Analyze Improve ControlDMAICSix Sigma Methodologies- * -

DMAIC - Define Define Measure Analyze Improve ControlA. Identify Project CTQs B. Develop Team Charter C. Define Process Map - * -Six Sigma Methodologies

DMAIC - Measure Define Measure Analyze Improve Control1. Select CTQ Characteristics 2. Define Performance Standards 3. Measurement System Analysis- * -Six Sigma Methodologies

DMAIC - Analyze Define Measure Analyze Improve Control4. Establish Process Capability5. Define Performance Objectives 6. Identify Variation Sources - * -Six Sigma Methodologies

DMAIC - Improve Define Measure Analyze Improve Control7. Screen Potential Causes 8. Discover Variable Relationships 9. Establish Operating Tolerances - * -Six Sigma Methodologies

DMAIC - Control Define Measure Analyze Improve Control10. Define and Validate Measurement System Xs 11. Determine Process Capability 12. Implement Process Control- * -Six Sigma Methodologies

DMADVDMADV Define Measure Analyze Design Verify- * -Six Sigma Methodologies

DMADV - Define Define Measure Analyze DesignBusiness Objective Project Scope Project Plan Verify- * -Six Sigma Methodologies

DMADV - Measure Define Measure Analyze DesignDetermine Customer Needs Prioritize and specify CTQs Risk Assessment

Verify- * -Six Sigma Methodologies

DMADV - Analyze Define Measure Analyze DesignDesign Options Concept Evaluation Assess Design Capability Verify- * -Six Sigma Methodologies

DMADV - Design Define Measure Analyze DesignDetailed Process Design Simulation & Design Reviews Control/Verification Plantings Verify- * -Six Sigma Methodologies

DMADV - Verify Define Measure Analyze DesignPilot Test & AnalysisProduction Process ImplementationTransition to Process Owner Verify- * -Six Sigma Methodologies

******Going from 2 to 3 sigma requires almost 5 to 1 reduction in defects, that is 80% reduction in defects. Then going from 3 to 4 sigma requires a further 10 to 1 reduction in defects. To ensure customer impact, defects must be defined from the customers perspective.*So what is Six Sigma?It is based on a philosophy of customer centricity , the process has to be looked into from customers perspective and feedback has to be received periodically and adjustments have to be done accordingly.It is a metric that demonstrates process capability of the products developed and services rendered.It has set of tools to address the variation or dispersion the process and helps reducing the variation.And most importantly the rigor is data driven, meaning with data we need to validate the current process capability and the improvements to the process.*

***Who are the important stakeholders and what are their roles and responsibilities.

Team Member might be part of bigger six sigma project, helps accomplishing six sigma activities / tasks.GB Green Belt , leads any six sigma improvement project.BB Functions as Mentor / Guide for multiple improvement opportunities.MBB Responsible for disseminating six sigma methodology across the organization, facilitates trainings and comes up with strategy to deploy six sigma.Champion Decision maker Bigger Ys Organizations goals.Big Ys Revenue GrowthProcess Ys Project YsControl and Input Factors Xs***********