34973369 Six Sigma Black Belt Wk1 Define Amp Measure

Six Sigma Black Belt ProgramDefine & Measure phase

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General Introduction

Objectives of Black Belt Training Why 6 Sigma in our organization? Benefits of 6 Sigma

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Objectives of Black Belt training To develop professionals in quantitative analytical skills, project management, group dynamics, team building and change management to address the organizational challenges. To build quality in to the systems to meet and exceed customer requirements.

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Why 6 Sigma in our organization? Overall strategy is to: Accelerate improvements in all processes and services by: - Identifying customer needs - Crafting a value proposition - Designing business models Reduce cost of poor quality by eliminating waste, reducing defects and variations To delight the Customers / Clients To Grow revenues, Sustain Margins, Improve revenue productivity, Grow human capital

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Benefits of 6 SigmaWhen the principles and methodologies of Six Sigma are properly applied in a business process, they return positive top line & bottom-line results. Some of the 6 Sigma Benefits are * Improved overall customer satisfaction * Increased productivity and added value * Improved capacity and output * Reduced total defects and cycle time * Increased product and service reliability * Improved process flow * Improved ROI5

Introduction to Quality

Fundamental Principles Quality Concepts

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Aim So High Youll Never Be BoredThe greatest waste of our natural resources is the number of people who never achieve their potential. Get out of that slow lane. Shift into that fast lane

If you think you cant, you wont. If you think you can theres a good chance you will.Even making the effort will make you feel like a new person. Reputations are made by searching for things that cant be done and doing them.

Knowledge

Skills

Attitude

Habit

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Moving up the competency ladderUnconsciously Competent

1. Unconsciously Incompetent 2. Consciously Incompetent 3. Consciously Competent 4. Unconsciously CompetentConsciously Incompetent Consciously Competent

4Unconsciously Incompetent

3

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Quality ConceptsQualitySimply stated, quality comes from meeting customer expectations. This occurs as a result of four activities: Understanding customer requirements Designing products and services that satisfy those requirements Developing processes that are capable of producing those goods and services Controlling and managing those processes so they consistently deliver to their capabilities.

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Importance of QualityClassical Business Model PROFIT = PRICE - COST Classical Quality Belief Better Quality Means: Six Sigma Approach Better Quality Means: Less Defects Less Reworks

Modern TechnologyModern Machinery High Skilled Resources In short BETTER QUALITY = HIGH COST In short

Less BufferLow Cycle Time

BETTER QUALITY = LOW COST

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Qualitys contribution to ProfitabilityQualityBetter products and services Improved processes

Customer SatisfactionCompete with value

Market Share

ExternalProduct QualityReduced Scrap Improved customer Response time

Price

ProductivityDecreased Cycle time Elimination of setup time

Internal

Profit

Process QualityReduced Rework Elimination of in process inspection

CostOpportunity for profit

Organization11

Typical Waste.Wastes of Manufacturing Process Defects Waiting Processing Over production Motion Inventory Transportation Under-utilization Safety hazards

Wastes of Service Industry Defects--- rework

Unsatisfied Customer---Customer not satisfied, wrong input

Under-utilization of Resources--- Poor usage of infrastructure , manpower

Over- Processing--- Over-support to customer ,unwanted information

Redundant Process steps--- Wrong processes / methods

Wastes Kill .. Business and Profits12

Cost of Poor QualityInspection Warranty

Traditional Quality Costs(Easily Identified) 4~ 6% of Sales

Rejects Rework (tangible) (tangible) Scrap

Lost sales

Additional Costs of Poor Quality(Difficult or impossible to measure)

Long cycle time Late delivery

25~35% of Sales(intangible) (intangible)

Lost Customer Loyalty Excess inventory Expediting costs

Lost OpportunityLost Opportunity

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Cost of Poor Quality (COPQ)?

Costs incurred due to product or process quality not meeting the customer requirement all the time.Costs that would not exist if there were no defects.

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Cost of Quality CategoriesInternal Failure Costs - costs that would disappear if no defects existed in the product prior to shipment to the customer. External Failure Costs - costs that would disappear if no defects were shipped to the customer. Appraisal Costs - costs incurred to discover the condition of the product (during first pass through). Prevention Costs - costs incurred to keep failure and appraisal costs to a minimum.

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Internal Failure CostsBefore shipment to customer

Examples Scrap (labor and material) Rework Retest / Recheck/ Re-inspection / Re-testing Productivity loss due to defects Excess inventories Failure analysis 100% sorting inspection

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External Failure CostsAfter shipment to customer

Examples Lost business Warranty Dealing with complaints Returned product Price concessions due to lower grade product

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Appraisal CostsExamples

Maintaining test equipment

Quality audits / Transaction Monitoring Materials consumed through destructive testing Incoming, In process & Final inspection & testing Quality system audits Inspection & testing of materials & services

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Prevention Costs

Examples Maintaining production/operations equipment Process Control & Capability evaluation Process improvement: -Error proofing -FMEA -DOE Training

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Evolution of Quality

1980s: Six Sigma

1960s: Japanese Quality Movements

1940s: Statistical Process Control

1920s: Invention of Control Charts by Walter A. Shewhart, Bell LabsEach Phase Built on the Structure and Gains From the Previous Phases20

DEMINGS Philosophy

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Demings 14 points for Quality Management (Principles of transformation)1. Create constancy of purpose for continual improvement of product and service. : Replace short-term reaction with long-term planning.2. Adopt the new philosophy for economic stability. 3. Cease dependency on inspection to achieve quality. : If variation is reduced, there is no need to inspect manufactured items for defects, because there won't be any. 4. End the practice of awarding business on price tag alone. 5. Improve constantly and forever the system of production and service. : Constantly strive to reduce variation. 6. Institute training on the job. : If people are inadequately trained, they will not all work the same way, and this will introduce variation.22

Demings 14 points for Quality Management7. Adopt and institute modern methods of supervision and leadership.

8. Drive out fear. Deming saw management by fear as counter- productive in the long term, because it prevents workers from acting in the organization's best interests.

9. Break down barriers between departments and individuals. : The concept of the 'internal customer', that each department serves not the management, but the other departments that use its outputs.

10. Eliminate the use of slogans & posters : Another central TQM idea it's not people who make most mistakes - it's the process they are working within. Harassing the workforce without improving the processes they use is counter-productive

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Demings 14 points for Quality Management11. Eliminate numerical quotas. : Deming saw production targets as encouraging the delivery of poor-quality goods. 12. Remove barriers that rob the hourly worker of the right to pride in workmanship. : Many of the other problems outlined reduce worker satisfaction.

13. Institute a vigorous program of education and retraining.14. Define top managements permanent commitment to ever-improving quality and productivity.

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Introduction to Six Sigma

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Introduction to 6 Sigma Six Sigma History Success Stories Definitions and Drivers 6 Sigma : What Makes It Different? 6 Sigma : Meaning

6 Sigma : Benefits6 Sigma : The Organization

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Six Sigma HistoryIn 1979 during a executive meeting, Motorola engineers stated The real problem at Motorola is that our Quality stinks

They had data confirming 10 - 20% of annual revenues was spent on correcting poor Quality, costing the company 800 - 900 million US $ PA

To get rid of this problem Motorola came up with Six Sigma Breakthrough strategy.

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Motorola

And the Results?1997

5.6Products Manufactured

~ 16 Billion

1986

4.2

In 1988 Bob Galvin (CEO Motorola) while accepting first Malcom Baldrige National Quality Award for Motorola, described about something called as Six Sigma.28

Six Sigma HistorySince then, hundreds of companies around the world have adopted Six Sigma as a way of doing business.

Six Sigma is a Structured, Project based approach to achieve BREAKTHROUGH results, leading to sustainable and significant FINANCIAL impact on our organization through intensive application of statistical tools and techniques by our people.

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Success stories - General Electric General Electrics, Jack Welch describes Six Sigma as the most important initiative GE has ever undertaken. GE had an operative income of 10% for decades and they were not able to improve this despite various efforts. After implementation of Six Sigma GE was able to improve its operative income from 10% in 1995 to 16.7% in 1998.As Jack Welch explains it: The best Six Sigma projects begin not inside the business but outside it, focused on answering the questionhow can we make the customer more competitive? What is critical to the customers success? . . . One thing we have discovered with certainty is that anything we do that makes the customer more successful inevitably results in a financial return for us.30

Asea Brown Boveri

ABB, after application of Six Sigma has reducedmeasurement equipment error by 83%. The company also made drastic improvements in material handling resulting in an annual estimated cost savings of US $775000.

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Allied Signal

Allied Signal, which was on the verge ofbankruptcy was made profitable by CEO Larry Bossidy through Six Sigma. The company implemented Six Sigma program in 1994. The cumulative impact on the savings in the direct costs during this period was more than US$ 2 billion.Allieds leaders view Six Sigma as more than just numbersits a statement of our determination to pursue a standard of excellence using every tool at our disposal and never hesitating to reinvent the way we do things.32

A Six Sigma Journey 1987 to 2006

Over the past few decades six sigma has evolved from a focus on defects to cost reduction to value creation.

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Companies Implemented 6 Sigma WorldwideDupont Sony Black and Decker Kodak Microsoft

GE

Allied Signal

Motorola Corporation Ford Federal Express IBM Johnson and Johnson American Express Citibank Johnson Controls Caterpillar

Toshiba

Asea Brown Boveri

Texas Instruments

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Definition & Drivers6 Sigma A comprehensive and flexible system for achieving, sustaining and maximizing business success

6 Sigma Drivers Close understanding of customer needs Disciplined use of facts, data, and statistical analysis Diligent attention to managing, improving, and reinventing business processes Six Sigma - A concept for Quality improvementThe Goal of Six Sigma is not to achieve six sigma levels of quality. It is about improving profitability, though improved quality and efficiency are the immediate by-products of Six Sigma.35

Definition of Quality as per Six SigmaQuality is a state in which value entitlement is realized for the consumer and the provider in every aspect of business relationship. Entitlement for companies means that they have rightful expectation to produce quality products at the highest possible profits. Entitlement for customer means they have a rightful level of expectations to high-quality goods at the lowest possible cost.

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6 Sigma : What Makes It Different? Six Sigma metric provides a standard for communicating process status and improvement goals. Project selection tied to organizational strategy / balanced scorecard Customer focused / proactive vs. customer driven / reactive. Project outcomes / benefits tied to financial reporting system. Recognition and reward system established to provide motivation. Executives and upper management drive the effort through: Understanding Six Sigma. Significant financial commitments. Actively selecting projects tied to strategy. Setting up formal review process. Selecting Champions. Determining strategic measures.37

Six Sigma v/s TQM and ISOISOFocus on Money Leadership & Top-Down Support

TQM

Six Sigma

Continuous ImprovementDeployment Strategy & Guidelines Measurement Criteria of Quality Goals Performance Targets Application of Statistical Tools Quality Career Path Extension to Cost, Cycle Time & Other Business Issues Integration of Business Goals with Quality Functional Focus Project Approach 38

6 Sigma: Meaning Reduce Variation to the half of Tolerance Band Minimize defects to the level of 3.4 defects per million opportunities

6 Definition

It is a Greek term whichdesignates the spread or distribution about the mean of any process.

LSLDefect !

USL

LSLDefect !

USL

Precise But not Accurate: Not Accurate Not Precise Process is off target : High variation in the process

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It is a metric that indicates how well the m o ni to r e d b us i n es s process performs. Higher the no., better t h e p r o c e s s .

Six sigma tool tries to reduce variation in the process and shifts process mean towards the target

LSL

USL

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Example 1Time taken to process order - Advisor AUSL

45 44 43 42 41 40 39 38 37 36 35 1 2 3 4 5 6 Order no.

Time in Minutes

Process mean is 40 40

LSL

7

8

9

10

40

Time taken to procees order - Advisor B 45 44 43 42 41 40 39 38 37 36 35 1 2 3 4 5 6 Order noUSL

Time in Minutes

Process mean is 40 40

LSL

7

8

9

10

41

Time taken to process order - Advisor A & B45 44 43 42 41 40 39 38 37 36 35 USL

Time in Minutes

B

40

A1 2 3 4 5 6 7 8 9

LSL 10

Order no

Which Advisor will you prefer ?42

6 Sigma GoalFrom Fixing products and services to become acceptable

The GoalTo Optimized processes that produce defect free products and services

Quantum Leap

Before 30 20

After

Influence of 6 Sigma

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0 0 10 20 30 40 50 Process before and after Six Sigma43

A Six Sigma Landing .Target USL

LSL

Six Sigma is about on target performance with reduced variability around the target44

Understanding

Sigma Level

Consider 10,00,000 (1 Million) planes take off per year. The plane crash resultsat each Sigma Level will be as follows2 sigma 3,08,537 Planes per year 3 sigma 66,807 4 sigma 6,210 5 sigma 233 6 sigma - 3 Planes per year planes per year Planes per year Planes per year45

Sigma Level and QualityDefects Per Million Opportunities 691,462 308,507 66,807

Sigma Level1 2 3

% Defects69 % 31 % 7%

45 6

6,210233 3.4

0.6 %0.02% 0.00034%

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Six Sigma ProcessPredictably twice as good as what the customer wants 6LSL

-6 1

3

+6

USL

1

1

1

1

1

1

2

3

4

5

6

7

8

9

10 11

12

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Sigma A measure of variation from target.

LSL

USL 1 Std. Dev. / 1 Sigma

One standard deviation around the mean is about 31% of the total opportunities included with in specification limit.48

If we can fit six standard deviations on both side of the mean in between our target and the specification limits . . .

LSL 6 5 4 3 2 1 1 2 3 4 5 6

USL

6 Std. Dev. / 6 Sigma

.. then 99.99966% of our opportunities are included!

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6 Sigma : Benefits Cost reduction Generates sustained success Sets a performance goal for everyone Enhances value to customers Accelerates the rate of improvement Promotes learning Executes strategic change Productivity improvement Market-share growth Customer retention

Cycle-time reduction Defect reduction Culture change Product/service development And many more.50

6 Methodology

Y

=

f(X)Focus of the 6 Approach of Problem solving

Which one should we focus on the Y or X?

Y Dependent Function Output Effect Symptom Monitor

X1,.,Xn Independent Variable Input Cause Problem Control object

6 Application assures that problem is solved by focusing on the factors that cause the problem.51

Lets Avoid This Situation !If we dont know the relationship between the Output (Y) and the Inputs (Xs) all we can do is to monitor and sort the good from the bad Ys. And Pray Hard that Y will turn out good !

OrImplement Six Sigma ...It discovers relationships between Y & Xs52

Y = f (X)Everything has a cause. Cause influences the effect

Focus on the cause (x) to change the response

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Pr = f (V)Problem is any deviation from the defined standards of a distinguishing feature.

Focus on source of variation to eliminate the problem

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V=E-OVariation is the gap; A deviation from the expectation

Measure the variation. We cant improve what is not measured.

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Continual ImprovementContinual Improvement

Performance

act plan act do check do check do

6 / ISO / COPC / e-SCM Performance Management System

AssuranceTime56

Six Sigma Organization, Roles and Responsibilities

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Six Sigma OrganizationSix Sigma focuses on reducing the variation in every process , makes intensive use of the statistical tools, enables decisions based on facts & data rather than gut feelings and puts customer in first place . Every improvement we are doing in house must be ultimately linked with the customer satisfaction whether it is internal or external . There must be strong and clear linkages between the internal processes, which ensures the end customer satisfaction . To transform our organization into Six Sigma organization , we must ensure that six sigma is used as a philosophy / strategy and not a tool . In an essence , It's a new way of managing the enterprise .

6 Sigma : The Organization

Leadership

Commitment at Executive LevelGovernance Review,Enable,Monitor,Institutionalise e.g. Quality leaders, Master Black Belts etc. Implementation Scope, Apply Six Sigma Tools And Enhance Business Processes e.g. Project sponsors, BU Managers, BB, GB, YB who apply Six Sigma on-the-job59

Six Sigma Deployment ModelDeployment Champion / Top ManagementLink Six Sigma to overall business strategy Creat Customer Feed back process Determine strategic goals and objectives Allocate appropriate resources Develop incentive plan & reward system Establish accountibilit y in annual performanc e reviews

Ispat Industries Ltd. Six Sigma Deployment Process

Creat a core six sigma leadership team with defined responsibilit ies

Extend the initiative in other group companies

Design and implement six sigma deployment

Creat an overall training plan

Design training Material & Periodic updates

Define a project selection process & criteria

Establish project review & project trac mechanism

Define a project validation & project closeout process .

Evaluate cultural obstacles & raise red alerts to manageme nt

Design a common database of closed projects & key learnings

MBB / Six Sigma core team

Compile the lessons learned & share best practices .

Identify opportunities for breakthrough improvement

Identify appropriate project leaders & arrive at cross functional team

Ensure resource availability for project execution

Review the team progress, remove barriers and resolve issues

Appreciate and recognize good efforrts. Motivate project team

Ensure controls are in place and project gains are sustained forever .

Project Champion / BU Managers

DEFINE the project. Pboblem statement, Objective, Scope, Team, Timeline

MEASURE the response variable Y. Baseline, Target, MSA

ANALYZE the negative effect. Identify root causes(X's) & verify statisticaly

IMPROVE peroformance ( Y's) by implementing the counter solutions for X's

CONTROL the KPIV's to sustain improved Y. Control plan, Control chart etc..

Black Belt / Green Belt / Project Team

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Organization / InfrastructureSenior executive who sponsors the overall Six Sigma Initiative and who is responsible for implementing Six Sigma within the business. Select meaningful business impact projects. Responsible for achieving Six Sigma project results. Identify, prioritize, select & scope projects. Review, track, and report Six Sigma project progress and results. Eliminate project barriers, assure proper project resources. Reward, recognize Six Sigma project team Achievements.Mentor black belts on their projects. Ensures effective application of DMAIC. Coach on appropriate, effective use of Six Sigma Tools & effective project management to achieve on-time results. Helps sponsor in improvement opportunity identification. Apply Six Sigma skills and expertise to their own Projects. Train BBs, Sponsors and Managers in Six Sigma. Highly experienced person with four weeks of classroom training, has managed several projects and is an expert in Six Sigma methods / tools. Organize, plan and lead Six Sigma projects. Escalates project barriers to sponsors. Project tracking, reporting. Apply Six Sigma skills and expertise to project execution. Responsible for coaching / mentoring / training Green and Yellow Belts, team members and for helping the Sponsor keep the initiative on track61

Sponsor

Master Black Belt

Black Belt

Organization / InfrastructureProject leaderUnderstand DMAIC Process and Sustain Improvements. Provide domain / Process expertise. Accountable for timely completion of projects. Support improvements. Identifies project team and ensures their availability.

Green Belt

Professional who leads small scope Six Sigma projects. Typically has one week of classroom training in methods, statistical tools, and (sometimes) team skills, participates in Black Belt project team or leads smaller projects.Typically has two days of classroom training in methods and basic statistical tools, participates on a Green Belt project team or leads smaller improvement projects. Professional who has general awareness of Six Sigma. (through no formal training) and who brings relevant experience or expertise to a particular project. Apply Six Sigma tools with help of Black / Green / Yellow Belts Contribute ideas during meetings and carry out action items. Collect and analyze data Lead small activities such as process capability studies, measurement system studies, verifying causes and solutions. Implement and sustain solutions.62

Yellow Belt

Team Member

Six sigma RolesBlack Belt Organize, plan & lead Six Sigma projects Project barrier escalation to sponsors Project tracking & reporting coaching / mentoring / training Green & Yellow Belts, team members

Green Belt Participates in Black Belt project team. Leads smaller projects

Team Members Bring expertise to projects Contribute ideas during meetings and carry out action items Collect and analyze data Lead small activities Implement & sustain solutions

Yellow Belt Leads smaller improvement projects

Master Black Belt- Mentor black belts on their projects - Ensures effective application of DMAIC - Helps sponsor in improvement opportunity identification - Apply Six Sigma skills & expertise to their own projects - Train BBs, Sponsors & Managers in Six Sigma

Sponsor- Sponsors the overall Six Sigma initiative - Select meaningful business impact projects - Eliminate project barriers, assure proper project resources. - Reward, recognize Sigma project team achievements

Project Leader- Understand DMAIC Process and Sustain improvements - Accountable for timely completion of projects - Provide domain / Process expertise - Support improvements. Identifies project team and ensures their availability

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Champion or SponsorRequirements Representative of Top Management Has Authority over the scope of project Statistical Knowledge is preferable

ResponsibilitiesAt Start: * Identify the Goals of the Project * Select the Project Leader or Black Belt * Ensure the Project Scope is under his control * Identify Milestones * Prepare Project Schedule

Experience in carrying out Quality improvement Projects is preferable

On Going: Provide Resources Conduct Periodic Review & add value Ensure the Project is on Right Track Control Budget At End: Handle Implementation Issues Quantify the Project Results Verify whether the Goals are achieved Prepare Future Action Plan, if required Conclude Project64

Master Black BeltRequirements Sound knowledge of Statistical Tools are required Good Communication & Teaching Skills are essential Should be a Good Consultant

ResponsibilitiesAt Start: Create Six Sigma awareness among top management Provide guidance & training for gathering Voice of Customers & Stakeholders Help to identify projects Provide guidance to prepare Project Charter On Going: Provide training on various Statistical Tools useful at different phases of the project life cycle Give Statistical Consultancy at different phases of the project life cycle

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Black BeltRequirements Statistical Knowledge essential Experience in Data Collection, Analysis & Interpretation required Should posses Leadership Qualities Should posses Good Communication Skills

ResponsibilitiesAt Start: Select Team Members Prepare Project Charter Identify Ys On Going: Analyze Ys & compute Baseline Sigma Value Identify Xs Establish relationships between Ys & Xs Optimize Xs Devise Control Mechanism to ensure that Xs are at optimum always.

At End: Be equivalent to Master Black Belt. Conducts programs on Statistical tools Facilitates Business Unit Head for project selection66

Green Belts \ Team MembersResponsibilitiesOn Going: Collect data on Ys Help BB to analyze Ys data. Be part of identifying Xs Collect data on Xs Help BB to establish relationship between Xs &Ys Help BB to optimize & control Xs Help design the new process Drive the project to completion

At End: * Green Belt will be equivalent to Black Belt

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Team Members Guidelines for team members Manageable team size up to 5 people People who are part of the process People who are benefited by removal of pain area

People who have domain knowledge People from same location Guest members as required

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Project Teams

Champion

Black Belt

BGreen Belt

G

GTeam Members

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Team DynamicsSkillsProblem Solving Technical/ Functional Interpersonal

Accountability Performance Results

Mutual Accountability Small group of people Individual Accountability

Specific Goals Common Approach Meaningful Purpose

Commitment70

Deployment Strategy Elements of 6 Sigma Deployment Role Matrix Training Certification Criteria Project Classification

Project Benefits Evaluation

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Elements of 6 Sigma Deployment1.Project Identification To contribute to the bottom-line of the organization, client satisfaction, etc

6. Fostering Quality CultureBranding Yearly Awards dedicated facilities and staff

2. Project ClassificationBlack Belt Project Green Belt Project Yellow Belt Projects

Six Sigma is being implemented in the organization as a catalyst for change in culture and achieve competitive advantage. DMAIC methodology is being used to develop and fine tune both core and enabling processes. Six Sigma Deployment plan is properly documented as PACE guidelines.

5. Project Benefits EvaluationProject Benefits (QNI) = Project Savings Project Expenditure

Top Management Commitment

3.Enhanced Training and certificationAwareness Program Yellow Belt Training Green Belt Training Black Belt Training

4. Review MechanismsProgram Reviews Project Reviews

commitment for Six Sigma and Champions/ Sponsors are the most powerful success factors

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Team Structure - Role MatrixRole Description Training Curriculum preparation and implementing improvements as per recommendations Preparing the Training Calendar Identifying the Trainers Certifying the Trainers Defining the Selection Criteria and improving the same on an ongoing basis Identifying the Trainees Selection of Projects based on ongoing experience and Business Goals Sponsor for the Project Project Management / Coordination Project Execution Project Certification Review of training material Quality Team Operations / Support Team HR Team SS Executive Committee (EC)

Respective BB / GB / YB

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Types of Training Awareness Program The program will be of a 4 Hrs duration. This is engagement specific and will be conducted internally by the dedicated certified trainer. Yellow Belt Training Two continuous days as stipulated in the program calendar Green Belt Training Five Days program spread over 3 months (2days + 2days + 1day) as stipulated in the program calendar Black Belt Training 20 Days program spread over 4 months, 5 continuous days every month as stipulated in the program calendar. For YB/GB/BB trainings all trainees are expected to be fully available during the training period

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Certification Criteria All trainees would need to attend a 2 day YB session/ 5 day GB session / 20 days BB session & pass the respective certification examination. Qualifying mark would be 70% for YB, 75% for GB & 80% for BB Project Certification will be granted to the BB, GB and YB identified and dedicated for the particular project Certification will be done internally by the Certification Board. The criteria for certification will be Complete training Pass the examination Meet any of the options as mentioned in the next page.75

Certification Criteria1 2 3 4

OPTIONS 5

Black Belt Certification

Green Belt CertificationBlack Belt Project Leader Green Belt Project Leader

Yellow Belt Certification

Yellow Belt Project Leader Yellow Belt/ Green Belt/ Black Belt Project Member 76

Project ClassificationIMPACT

Green Belt Yellow BeltComplexity

Black Belt X

Black Belt Projects

Projects that have cross functional scope and are of high impact and complexity with respect to NET revenue earnings / NET savings. (Expected savings $ 50,000/ annum min). Should complete within 4 to 6 months Base line, target and savings should be validated by Financial representative

Green Belt Projects

GB projects are less complex than BB projects. (Expected savings $10,000-$ 50,000/ annum) Should complete within 2 to 4 months Base line, target and savings should be validated by Financial representative

Yellow Belt Projects YB projects are Cell wise projects, where cross functional team is not required and very limited statistical knowledge required to carry out the project This projects are taken as value addition to GB projects. YB projects by themselves do not generate / save revenue.77

Project Benefits EvaluationHard (Tangible) Benefits Soft (Intangible) BenefitsDefinition: Any measurable Improvement which cannot be quantified and converted into Dollar Savings.Examples: Increase Customer Satisfaction Scores Improve VOC Scores Improving Federal / State regulatory Compliance Scores

Definition: Any measurable Improvement which can be Quantified and converted into Dollar Savings. Examples: Reduction of 3 FTEs 1% market share Increase Eliminate 2 Temporary Positions Rework down 20% Lower vendor cost per transaction Save 1 temp. worker 2 hrs of work per week Eliminate 30% call volume Decrease AHT of the process by 60 secs Reduction in past due receivables by $10MM

Project Benefits (QNI) = Project Savings Project Expenditure1. 2.

3.

Project Charter will include Sign-off from Finance Analyst Project validation / authentication is done by Sponsor, Head Quality and Finance Dept. The return on the project is verified. Only upon successful completion of the project, the respective BB will be eligible for certification.

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Six Sigma Project Identification and Selection

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Project Identification & Selection Project Selection approach Project Sources and Selection Criteria Kano Model CTQ Tree Quality Function Deployment

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Project Selection ApproachSteps

What is the process ? Who are the potential customers ( Internal, External, Business owners) What are the process deliverables ? What is the Unit of Measurement ? Is Measurement System in place ? What is the Current Performance (Baseline) ? What is a expected / targeted performance ? Does gap exists ? Does gap carries significant impact to customer / business ? Identify the improvement approach Continuous Improvement OR Re designed ?

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SS Project Selection Approach Identifying Critical processesApproach Steps ToolsBusiness Process Framework

Approach DescriptionOne of the Business / Functional unit (e.g. Operations / Purchase Process flow steps

Business Unit

Business Process

Process Flow Chart Customer Surveys Brain storming Prioritization Step I Step II

Step III

Step IV

Step V

Step VI

Step VII

Identify Critical Process

Study Process

High level process mapping

Study the critical process and the pain areas identified during customer survey

Identify Customers

SIPOC

Identify External & Internal (Business Owner & other functions) for the critical process

List out Customer Expectations/Deliverables

SIPOC

Categorize the customer expectations (VOC / Pain areas) from critical process obtained form from surveys in to Deliverables of Quoting process

Does Process Exists? Yes

No A

B

Sub Process Flow Chart

For each deliverable of critical process identify If the sub process or product / service feature exists

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Six Sigma Project Selection Approach (Contd.)Approach StepsA Are Metrics in place? Define Metrics & implement data collection plan

ToolsSIPOC Data collection checklists Dashboard Enterprise Performance Management Matrix Process Capability

Approach Description

For each deliverable of critical process identify unit of measure & measurement system

Ensure that the critical process metrics are linked with Business objectives, Strategy & VOC

Validate the Metrics

Collect data for all critical process metrics to define baseline process performance

Process Base lining

Control Charts Conduct a gap analysis between the critical process baseline performance and targeted / customer expected performance level Process Performance Enhancement Apply DMADV / Process Re Engineering implementation 1. 2. DMAIC DMADV Re Design / Re Engineer Problem Solving Approach If the sub process exists for a metric / feature apply DMAIC for long term approach OR Problem solving approach for Quick wins for early realization of improvements where solutions are known If the sub process does not exist for a metric / feature apply DMADV or Process Re Engineering Approach.

Does Gap Exists? Yes Does Process exists?

No

Explore need of performance excellence

B No

Yes

Long Term Approach Apply DMAIC Quick wins Apply REIS

3. 4.

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SS Project Selection Approach Identifying Undesirable Conditions1. Identify the undesirable business process conditions. (Customer complaints, VOC, Quality reports, Monthly performance indicators) 2. Quantify the undesirable conditions in to Defect (%, PPM, DPMO, Sigma level) or Cost . 3. Identify the potential causes for the undesirable conditions. (High level process map, C & E analysis, Pareto analysis) 4. Arrive at the vital few potential causes and prioritize . (NVA's, Multivoting, 80:20 principle )

5. Identify the business process to which each prioritized suspected cause belongs to .

6. Select the core or enabling process for improvement, quantifying the gap between current performance and what customer wants (Process Deliverable).

Six Sigma Project 1 Define

Six Sigma Project 2 Define

Six Sigma Project N Define

Appl y...

Measure

Measure

Measure

Analyze Improve

Analyze Improve

Analyze

Improve

Target : Reliable (Stable & controlled) processes, Satisfied Customers, Happy Employees

Control

Control

Control

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Improvement Methodology SelectionProcess Improvement

Product / Process Development : Where a sub process does not exist to take care of the customer requirement

Product / Process Performance Enhancement : Where the sub process exists but unable to meet the customer requirement with current process performance level

Product / Process Metric monitoring : Where the tentative solutions are known and systematic execution is required to ensure the Improved process performance & sustenance

DMADV (Define, measure, analyze, design and validate)

DMAIC (Define, measure, analyze, improve and control)

REIS (Recognize, evaluate, implement and sustain)

Design processes that do not exist for e.g. knowledge management

Enhance process metrics e.g. turnaround time, customer problem resolution effectiveness etc

Monitor and reduce errors in the process e.g. ineffective call close etc

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Six Sigma DMAIC Project FlowDefine Tollgate Measure Tollgate Analyze Tollgate Improve Tollgate Control Tollgate

DDefine DefineStep 1: Identify customer & their care abouts. Covert their needs in to Critical to Satisfaction (CTS) i.e. CTQ Critical to quality, CTC Critical to Cost & CTD Critical to Delivery. Step 2: Develop Project Charter

MMeasure MeasureStep 3: Take the snapshot of the process, how the process performing currently & fix the baseline. Step 4 : Validate the measurement system from which we collect the data.

AAnalyze AnalyzeStep 5: Identify the key process input variables that affects the outputs most. Step 6 : Verify the identified causes to see whether those are real or not.

IImproveStep 7: Determine the solutions to optimize the output & eliminate / reduce defects & variations. Step 8 : Implement the solutions partly & statistically verify their impacts on output.

CControlStep9 : Put the control in place to sustain the gains made by the process improvement. Step 10 : Integrate in daily work by Process Owner & team

Phase DeliverablesRequired List of Project CTQs QFD/CTQ Tree Project Charter SIPOC Tools Box Project Risk Assessment Stakeholder Analysis High Level Project Plan In Scope/Out of Scope Customer Survey Methods (focus groups, interviews, etc.) Required Process Baseline capability Operational definition, Specification limits, target, defect definition for Project Y(s) Measurement System Analysis Tools Box Benchmarking Data Collection Plan Gage R&R Process Map FMEA Pareto Analysis Required Data Normality Test List of Statistically Significant Xs . List of vital few Xs & their verification Tools Box RCA / Fishbone Diagram Hypothesis Testing Correlation & Regression Analysis Required Optimization of Xs Improvement verification Tolerances on Vital Few Xs Required Post Improvement Capability Improvement tracking Process Control Plan Process Owner Signoff

Tools Box Design of Experiments Improved Process Maps FMEA on new process

Tools Box Control Charts Control Plan Hypothesis Testing Error Proofing

86

Six Sigma DMADV Project Flow

87

Problem Solving (Quick Win) Project Flow

88

Project Sources and Selection Criteria

Sources of Project GenerationC-Sat / V-Sat Short Term / Long Term Organizational Goals (Business and operations) Service Level Transaction Quality Resource Utilization Engagement Targets client complaints etc

Six Sigma Project Selection criteria Business Filters contribute to bottom-line of the organization Drastic, long term, risk free Improvement Solution Not known No other teams working on project

Project Filters Availability of Data Measurable Time bound Realistic and Attainable89

Customers Perception Project identification begin not inside the business but outside it Focus on answering the following questions: * How can we make the customer more competitive? * What is critical to the customers success? Anything we do that makes the customer more successful inevitably results in a financial return for us. Kano Model is one of best technique to collect and understand Voice of Customer (VOC)

Business and operational goals can be analyzed by CTQ Drill down or Quality Function Deployment

90

CustomersWho is a customer? One who is paying for your service or product a person who buys goods or services

Types of customers External or internal Lost customers Prospective customers

91

What do customer & shareholders want?What do customer wants?Utility:They buy product or service for a need Time : They want it when they need it Value : They pay for it only if they perceive a value

What do shareholder wants?

The business must successfully serve the customers Wants and Still provide good profits.

92

Kano Model

CUSTOMERS WANTS

Must Be

SatisfiersDelighters

DelightersNo penalty for not doing them However, if you do them, you get bonus points

SatisfiersThe better we do, the happier the customer is (Plane gets to the destination on time)

Performance

Must BeThe better I do, the less dissatisfied the customer is. (e.g., airlines get no credit for getting bags to you on-time)

Customer Satisfaction93

Kano Model : ExerciseExercise 1: Classify the following as Must Be, Satisfiers & Delighters 1. Air Conditioner free with every purchase of four wheeler 2. Availability of hot water in 5 star hotel bath room 3. More mileage per liter of fuel

Exercise 2:

1. Identify a Must Be, Satisfier & Delighter from your own process

94

Gather voice of the customer* Review existing voc data * Decide what to collect * Select tool to collect *Collect data

Voice of Customer : Ways to Capture SURVEYS FOCUS GROUPS INTERVIEWS WORD OF MOUTH COMPLAINTS95

Voice of Customer : Ways to CaptureSurveys :A method of gathering information From a sample representing the population these are comprehensive data driven information vehicles that are useful in capturing customer requirements as well as measuring performance against those requirements.

Focus groups:in this group you group together similar customers and ask for their opinion on the requirements as well as performance against those requirements

Customer interviews:could be informal or Structured. Informal interviews give good insight into the customer perspective of the product and services and depends on probing open ended questions96

Voice of Customer : Ways to CaptureWord of mouth:the customer feedback comes through direct and different channels. Internal: employee feedback External: reports from known sources

Be a customer yourself :feel the quality of Service yourself

97

Voice Of The CustomerSample Comments/Data

Im Tired Of Having To Call up for this Lousy Product Every Ten Days I simply dont understand what the Customer Support Professional Talks about Why Dont You Guys Get Your Act Together?! The Phone Must Have Rung Ten Times Before I Got An Answer Im Not Very Happy With Your Service

What do we do with VOC input?98

Translating Customer Needs To RequirementsVoice Of The CustomerI Am Always On Hold Or Transferred To The Wrong Person.

Key Issue(s)Want To Talk To The Right Person Quickly

RequirementAdd Additional Menu Items To Voice System (BAD) Customer Gets To The Correct Person The First Time (GOOD)

Im Getting My Bill At Different Times Of The Month.

Consistent Monthly Bill

Customer Wants Timely Bill (BAD) Customer Bill Received Same Day Of Month (GOOD)

Take Too Long To Process The Application.

Speed Up Loan

Customer Wants Fast Loan (BAD) Customer Receives Approval On Customer Request Date (GOOD)

99

Exercise 1.1Translating Customer Needs (VOCs) To Requirements.

1. Refer to your workbook.2. You have given a Voice Of Customer (VOC) 3. Using these VOC - Identify key issues customer is facing - Identify the specific requirements which will tackle these issues

100

Collection of Voice of Customer (VOC)Step 1: Get the Voice of Customer (VOC) and the importance rating through survey, feedback, market research, etc. Example: VOC of a BPO company VOC Rating

Utilization of billable resources should be Very Important maximum Abandoned calls should be minimum Right & Complete Resolution Talk Time should be reasonable Good Customer Service Skills Important Very Important Important Important

101

Step 2: Quantify the Customer rating numerically. VOCUtilization of billable resources should be maximum Abandoned calls should be minimum Right & Complete Resolution Talk Time should be reasonable Good Customer Service Skills

Rating5 3 5 3 3 Very Important: 5 Important: 3 Reasonable: 1

Step 3: Get Voice of Stakeholder.Voice of StakeholderBuffer should be minimum Reduce loss of login hours Reduce Rework Increase CSat Score

RatingVery Important Important Important Very Important

Reduce Customer Complaints

Very Important102

Step 4: Quantify Stake holder's voice.Voice of Stakeholder4 Buffer should be minimum Reduce loss of login hours Reduce Rework Increase CSat Score Reduce Customer Complaints Rating 5 3 3 5 5 Very Important: 5 Important: 3 Reasonable: 1

103

Step 5: Map the Customer Requirements & Stake Holder Requirements to Business and Operational Goals.RequirementsUtilization of billable resources should be maximum Abandoned calls should be minimum Right & Complete Resolution Talk Time should be reasonable Good Customer Service Skills Buffer should be minimum Reduce loss of login hours

Rating

QualityHigh Medium High

Cycle Time High High

Training

Multi Tasking Medium

5 3 5 3 3 5 3

Medium Medium

High

Medium High

Medium Medium

High high

Reduce ReworkIncrease CSat Score Reduce Customer Complaints

35 5

HighHigh High

MediumMedium Medium104

Step 6: Calculate importance ranking to Business and Operational Goals.RequirementsUtilization of billable resources should be maximum Abandoned calls should be minimum Right & Complete Resolution

Rating5 3 5

QualityHigh Medium High

Cycle Time High High

Training

Multi Tasking Medium

Medium Medium

Talk Time should be reasonableGood Customer Service Skills Buffer should be minimum Reduce loss of login hours Reduce Rework

33 5 3 3 High

HighMedium Medium Medium

MediumHigh High High

Increase CSat ScoreReduce Customer Complaints Rank

55

HighHigh 124

MediumMedium 118 42 55

105

Step 7: Identify Key Process Output Variables or CTQs (Ys).KPOVs (Ys) Quality Ranking 124

Cycle Time

118

Identify Six sigma projects to improve these KPOVs

106

Exercise 1.2 (10 minutes)Six Sigma project identification through VOC 1. Refer to your workbook.2. Identify Six Sigma projects for the areas identified through VOC 3. Allowable time : ----- Minutes

107

CTQ (Critical to Quality) & CTQ TreeThe basic reason any process exists for is to satisfy the requirements of the customer / Stakeholders.

Business CTQ Business Y

Customer CTQ

The critical customer satisfaction parameters can be broadly categorized under Cost, Quality, Delivery, Service, productivity etc which are called as CTQs

Internal CTQ Process Y

CTQ is a Product , Process or Service characteristic that satisfies a Customer Requirement (External & Internal Business Owners, all functions )

Project CTQ Project Y108

Business ObjectiveVoice of customer / Organizational Goals/ Pain Areas

Business Y

Identification of Improvement Areas

Process Y

Customer Satisfaction Score

Service Level Agreement

Transactional Quality

Development Cost

Resource Utilization

Project Y

Six Sigma Black Belt & Green Belt Projects Leading to significant Top line improvement with Customer Satisfaction & Bottom line impact through Revenue generation and cost saving109

CTQ TREEA methodology to break the CTQs in the over all level to the CTQs at sub process levelExample 1: CTQ Tree for the KPOV: Quality Voice & Accent Example 2 : CTQ Tree for the KPOV: Cycle Time

Waiting TimeCycle Time

Voice Quality

Empathy

Quality Data Quality

Culture

Handling Time

110

Examples of Customer CTQsA Car Purchaser Mileage Spacious Low price/affordable High technology Loan Facility

A Prospective EmployeeGood Salary Location Preference Flexible Working Hours ESOPs Good working place

Order Management ClientService Quality

Customer Sat (Ext)Customer Sat (Int) Service CSat (Ext) Service CSat (Int)

Yield Productivity 1st Touch Cycle Time Case Res Cycle Time 111

CTQ Drill Down responsibility Matrix

Define what is critical (CTQ) to Business Define your Customer Explore Customer CTQ Define Internal CTQ / Critical Business Process

Champion, BB Champion, BB Champion, BB Champion, BB

112

Exercise 1.3 (15 minutes) Drawing a CTQ Tree1. Refer to your workbook.2. Draw a CTQ tree for your any one of the project you have selected 3. Allowable time : ----- Minutes

113

Quality Function Deployment (QFD)What is QFD? QFD begins with Customer. It is also called House of Quality QFD links the needs of the customer with design, development, engineering, manufacturing and service functions. It helps organizations seek out both spoken and unspoken needs, translate these into actions and designs, and focus various business functions toward achieving this common goal. QFD empowers organizations to exceed normal expectations and provide a level of unanticipated excitement that generates value. The basic idea of QFD is to translate the voice of customer, throughout the marketing, R&D, engineering and manufacturing stages of product development.114

Quality Function Deployment (QFD) It is a structured approach that facilitates the translation of the customers voice into specific requirements. These specific requirements are mapped to the design process production process and delivery processes to determine the process and design requirements. Quality function deployment allows customers to prioritize their requirements Benchmark with competition, help optimize and to attain competitive advantage

115

Quality Function Deployment (QFD)QFD: When to use ? To develop new product or service capability, specially for complex ones. For products and services where clarification and prioritization of efforts on key customer wants is needed. For developing or refining existing internal systems in order to build or product delivery capability.

For development of products or services that do not have a clear mapping of the customer requirements and the design attributes.

116

Quality Function Deployment (QFD)Benefits of QFD QFD brings in involvement of all the departments thus improving the communication among them. Provides excellent frame work for cross functional deployment of quality cost & delivery. Since QFD is a documentation process it helps in reducing mistakes. Brings robustness in the product.

117

Quality Function Deployment (QFD)How to build one?1. The first portion of QFD matrix is the Customer Requirements. All the VOC that have been translated into tangible requirements form the Customer Requirements part. 2. The second part, on the right hand side of QFD, is the Planning Matrix. It is used to quantify Customers requirement priorities and their perception of the performances of existing products. This is done through Importance Weighting of the Customer Requirements. 3. The third part of QFD is the Technical Requirement section. This describes the product or service in the terms of the company and it includes all the measurable characteristics of the product / service that might be related to meet the customers requirements. Often an additional row is included to illustrate the direction in change of variables which is supposed to result in improvement in product / Service performance. 4. The fourth part of QFD is Interrelationships section. This is used to translate the customer requirements into the technical characteristics of the product / service. Inter-relationships between each of the Customer requirements and technical characteristics are analyzed. Generally, the level of inter-relationship is shown with the help of symbols denoting a 3 point scale (High, medium, low ). Each level of inter-relationship is assigned a score. Generally a score of 5-3-1 is used to denote High-medium-low-none.118

Quality Function Deployment (QFD)5. The fifth part of QFD is the Roof. This is used to denote the areas where the technical requirements characterizing the product or service support or inhibit each other. Where there is a deterioration because of interaction, - sign is used. Where there is an improvement in one characteristic because of the other, + sign is used. 6. The final component of QFD is the Targets. It summarizes the conclusions drawn form the matrix and teams discussion. It consists of three parts: a) Technical Priority b) competitive Benchmarks and c) Targets. a) Technical Priority signifies the relative importance of each of the technical requirement in meeting the Customers specified needs. It is calculated by summing up the products of interrelationships weightings with the overall weighting in the planning matrix. b) Competitive Benchmarking: Each of the technical requirements identified as important characteristic of the product or service are compared vis--vis the existing product and the competitors product. c) Targets: The final outcomes of QFD are the targets. These are a set of target engineering values to be met by the new product or service.

119

D

M

A

I

C

Quality Function Deployment (QFD)

Structure3Roof

2

Technical Requirements

4 1Customer Requirements INTER- RELATIONSHIPS Planning Matrix

5

6

Techincal Priorities Targets

7

120

3Roof

2


STEP - 1Planning Matrix

4 1Customer Requirements

Customer Requirement : Basically focus on desired deliverable/outcomes from the process Customer Importance : Rating of Customer requirement on a scale of 1-5

5

INTER- RELATIONSHIPS

6 7


Customer importance

Quality monitoring

Overall weightage

Technical Requirement

Improvement factor

Planned rating

Process tools

Competitor A

Competitor B

Our product

Technology

Experience

Sales point

Training

Complete Resolution first Time Resolution good Customer Service Ontime delivery Aware of support boundaries Quick Response Customer Education Technical Priorities % of total Benchmarking all products Competitor product A Competitor product B Design Targets

5 5 4 5 3 5 3

Culture

Customer Requirement

% of Total

121

3Roof

2




5


6 7


Technical Requirement : This describes the product or service in the terms of the company and it includes all the measurable characteristics of the product / service that might be related to meet the customers requirements ; Basically focus on input parameters which will have direct/indirect impact on deliverable/outcomes of the process;Improvement factor Quality monitoring Overall weightage


Customer importance

Planned rating

Process tools

Competitor A

Competitor B

Our product

Technology

Experience

Sales point

Training


5 5 4 5 3 5 3

Culture


% of Total

122

3Roof

STEP - 3

2


4 1Customer Requirements INTER- RELATIONSHIPS Planning Matrix

5

Roof : It shows the inter-relationship between two or more inputs Parameters ` + means positive relationship ` - means negative relationship

6 7


+ +Customer importance Improvement factor Quality monitoring Overall weightage


Planned rating

Process tools

Competitor A

Competitor B

Our product

Technology

Experience

Sales point

Training


5 5 4 5 3 5 3

Culture


% of Total

123

3Roof

STEP - 4

2


4Customer Requirements INTER- RELATIONSHIPS Planning Matrix

5

6 7


+Customer importance

+

Inter-Relationship Block : It shows the interrelationship between inputs parameters and output deliverable ` 5 means Strong relationship ` 3 means Medium relationship ` 1 means Weak relationship ` 0 means No relationship

Quality monitoring

Overall weightage


Improvement factor

Planned rating

Process tools

Competitor A

Competitor B

Our product

Technology

Experience

Sales point

Training


5 5 4 5 3 5 3

5 5 3 3 1 3 5

5 5 5 3 3 3 5

1 1 1 5 1 5 1

5 5 1 5 3 3 1

5 5 3 1 3 3 5

Culture


1 1 5 1 1 3 3

3 2 3 3 3 3 2

% of Total

124

3Roof

2



Planning Matrix : Our Product : Rating of existing product/service on scale of 1-5 against customer requirements Competitor A/B : Rating of Competitor product/services against our customer requirements

4Customer Requirements

5


6 7



+

Quality monitoring

Overall weightage


Improvement factor

Planned rating

Process tools

Competitor A

Competitor B

Our product

Technology

Experience

Sales point

Training


5 5 4 5 3 5 3

5 5 3 3 1 3 5

5 5 5 3 3 3 5

1 1 1 5 1 5 1

5 5 1 5 3 3 1

5 5 3 1 3 3 5

Culture


1 1 5 1 1 3 3

3 2 3 3 3 3 2

4 4 4 5 4 4 4

4 3 4 4 4 4 3 Total

Competitor Rating shall be benchmark rating125

% of Total

3Roof

2



4Customer Requirements

5


6 7



+

Planned Rating : Target rating for customer requirement based on competitor rating Improvement Factor : Ratio of Planned rating and Our product Rating Sales Point : Rating of Sales team (sales perception)on ability to sell the product/services based on how well each customer need is met, on scale of 1.1, 1.3 and 1.5Improvement factor

Quality monitoring

Overall weightage


Planned rating

Process tools

Competitor A

Competitor B

Our product

Technology

Experience

Sales point

Training


5 5 4 5 3 5 3

5 5 3 3 1 3 5

5 5 5 3 3 3 5

1 1 1 5 1 5 1

5 5 1 5 3 3 1

5 5 3 1 3 3 5

Culture


1 1 5 1 1 3 3

3 2 3 3 3 3 2

4 4 4 5 4 4 4

4 3 4 4 4 4 3

4 1.3 4 2.0 4 1.3 5 1.7 4 1.3 4 1.3 4 2.0 Total

1.3 1.3 1.1 1.3 1.1 1.1 1.3

1.1 : Low inter-relationship 1.3 : Medium inter-relationship 1.5 : Strong inter-relationship 126

% of Total

3Roof

2




5


6 7



+

Overall Weighting : Product of Sales Point, Improvement factor and Customer Importance Technical Priorities : signifies the relative importance of each of the technical requirement in meeting the Customers specified needs. It is calculated by summing up the products of interrelationships weightings with the overall weighting in the planning matrix.Improvement factor Quality monitoring

Planned rating

Process tools

Competitor A

Competitor B

5

8.7

43.5 65

Training

Culture

Customer Requirement Complete Resolution first Time Resolution good Customer Service Ontime delivery Aware of support boundaries Quick Response Customer Education Technical Priorities % of total Benchmarking all products Competitor product A Competitor product B Design Targets

3 3 1

5.9

17.7 32.4 4.4

10.8 4.4

5 5 4 5 3 5 3

5 5 1 5 5 1 3 4 3 2 7.34 5 5 1 5 5 1 3 5 1 1 3 5 5 3 7.84 3 3 5 5 1 1 3 5 1 3 1 3 3 1 3 4 3 3 5 3 3 3 3 4 5 5 1 1 5 3 2 4 224 244 131 211 211 112 1133 20% 22% 12% 19% 19% 10%

4 4 1.3 321.9 2.0 4 4 394 1.3 4 5 1.7 4 4 1.3 4 224 1.3 4 3 4 2.0 Total

1.3 8.7 14.97% 1.3 13.0 22.45% 1.1 5.9 10.13% 1.3 10.8 18.71% 1.1 4.4 7.60% 1.1 7.3 12.67% 1.3 7.8 13.47% 57.9

% of Total

5

13

Overall weightage


Our product

Technology

Experience

Sales point

127

3Roof

2




5


Targets : The final outcomes of QFD are the targets. These are a set of target engineering values to be met by the new product or service.

6 7



+Improvement factor

Quality monitoring

Overall weightage


Planned rating

Process tools

Competitor A

Competitor B

Our product

Technology

Experience

Sales point

Training


5 5 4 5 3 5 3

5 5 1 5 5 1 3 5 5 1 5 5 1 2 3 5 1 1 3 5 3 3 3 5 5 1 1 3 1 3 1 3 3 1 3 3 3 5 3 3 3 3 5 5 1 1 5 3 2 224 244 131 211 211 112 1133 20% 22% 12% 19% 19% 10%

Culture


4 4 4 5 4 4 4

4 3 4 4 4 4 3

4 1.3 4 2.0 4 1.3 5 1.7 4 1.3 4 1.3 4 2.0 Total

1.3 8.7 14.97% 1.3 13.0 22.45% 1.1 5.9 10.13% 1.3 10.8 18.71% 1.1 4.4 7.60% 1.1 7.3 12.67% 1.3 7.8 13.47% 57.9

% of Total

128

4 House QFDCustomer Measurements (HOWs)

Customer Measurements (WHATs)

House of Quality #1Customer House

Customer CTQs (WHATs)

Internal Actions (HOWs)

Internal Actions (WHATs)

House of Quality #2Function House

Process Requirements (HOWs)

Process Requirements (WHATs)

House of Quality #3Process House

Process Variables (HOWs)

House of Quality #4Control House

Define

Improve

Control129

Points to Remember in QFDDos Focus on the end-user

Donts

Charts as the ends & not themeans Find reasons to succeed, not excuses for failure If there are no tough spots the Dont apply QFD on everything Avoid too much chart focus Dont hurry up & get done

first time, it probably is not beingdone right !130

A Restaurant Example Manila PizzaCTQs from VOC (WHATs) Type of Menu Economic aspect Presentation of staff Type of service Quality of service Quality of Food

Importance Rating 34 3 3 4 5

Measurements on CTQs (HOWs) Varieties available in terms of Chinese, Indian, Continental food Price Availability of parking space Food served at right temperature Waiting time for food/order Options to pay ( Cash/Debit card/Credit card) Cleanliness of cutlery / attendants attire Staff courtesy Taste of food Ambience131

Define+Customer importanceTechnical Requirement

+

+ +Improvement factor

Varieties available

Overall weightage

Options to pay

Planned rating

Taste of food

Competitor A

Competitor B

Waiting time

Our product

Sales point

Capturing Customer Requirement along with importance rating

Type of Menu Economic aspect Presentation of staff Type of service Quality of service Quality of FoodTechnical Priorities % of total Benchmarking all products Competitor product A Competitor product B

3 4 3 3 4 5

5 3 1 3 1

Price


3 5 3 3 3

3 1 1 5 5

1 5 1 5 5

5 5 1 1 3

1 3 5 1 1

3 2 3 3 3

4 4 4 5 4 4

4 3 4 4 4 4

4 1.3 1.3 4 2.0 1.3 4 1.3 1.1 5 1.7 1.3 4 1.3 1.1 4 1.3 1.1 Total

5.2 13.10% 10.4 26.20% 4.4 11.08% 6.5 16.37% 5.9 14.78% 7.3 18.47% 39.7

3 3 1 1 5 1 3 109 140 100 131 143 78 700 16% 20% 14% 19% 20% 11% 3 5 10 minsopts 3 3 4 USD 15mins opts 2 4 6USD10mins opts 3 5 4 5 5 5 3

5 USD per person

All three options

3 Varities

Above 4

Design Targets

Above 4

10mins

% of Total

Ambience

132

Improve

+ +Qualificaiton of Chef Experience of Chef

+Raw Material availability Communication system Raw Material Quality Improvement factor Overall weightage Delivery System


Customer importance

Planned rating

Competitor A

Competitor B

Our product

Sales point


Taste as per expectation Temperature of Food Add-on over ordered food Effect on HealthTechnical Priorities % of total Benchmarking all products Competitor product A Competitor product B

5 4 1 5

5 5 3

5 1 3

5 3 1

1 5 1

5 1 5

5 1 5

3 3 3

5 4 4 5

4 3 5 4

5 1.7 1.3 4 1.3 1.3 5 1.7 1.1 5 5.0 1.3 Total

10.8 20.79% 6.9 13.31% 1.8 3.52%

3 3 1 1 1 5 1 192 164 109 80 103 233 881 22% 19% 12% 9% 12% 26% min 4yrs PG 5yrs PG 8yrs PG10mins 5yrs PG

32.5 62.38% 52.1

5 5 5

5 3 5Above 4

5 4 5Above 4

5 3 5

Design Targets

5

% of Total

133

Control

+ +Training to Material Handlers Inward Quality Inspectors Temperature of Storage system

Improvement factor

Overall weightage1.1


Inventory Management

Customer importance

Planned rating

Competitor A

Competitor B

Our product

Sales point

Freshness of Vegetable used5 Quality of Food grain used 4 Storage System 1 FIFO 5Technical Priorities % of total Benchmarking all products Competitor product A Competitor product B Design Targets

5 1 5

5 5 1

Supplier


1 3 1

1 3 5

3 1 5

4 5 4

4 4 4 5

4 3 4 4

4 1.0 1.3 4 0.8 1.3 4 1.0 1.1 5 1.7 1.3 Total

6.5 28.77% 4.2 18.41% 4.87%

5 1 1 1 5 3 96 65 31 35 83 311 31% 21% 10% 11% 27% SOP PG SOP PG SOP PG Cert. Cert. Cert. 5 5 5 5 5 5

10.8 47.95% 22.6

SOP

PG

5

5

5

% of Total

134

Exercise 1.4 (30 minutes)Preparing the first two houses of the QFD1. Refer to your workbook.2. Prepare the first two houses of the QFD for a given example

135

Brainstorming & Multi-voting Example Below table illustrates the number of group members & total ideas generated

Now each member gives votes to ideas (maximum one vote to each idea) & below is the vote distribution for ideas

Top ideas whose vote count adds upto 32 are as below (30 is not possible), there are 7 such ideas

136

Brainstorming & Multi-voting Example Take these 7 ideas for further round of multi-voting

Give each member 4 votes (round off 50% of 7 to next higher integer) & ask them to distribute these 4 votes among these 7 ideas. Below could be the distribution in this fresh round of voting

Take top ideas whose vote count adds upto 9

This list is manageable

137

Points to Remember in Brainstorming All ideas are important, dont out rightly reject any idea Participation should be ensured from all team members To ensure this, project teams could use the round-robin method of idea generation Its advised to use the Black Belt as the facilitator here

138

Exercise 1.5 (15 minutes)Multi-voting1. Refer to your workbook.2. Do a multi-voting exercise for a given example

139

A Right Project Selection is key to successRight Project Selection Selecting the right project can have a tremendous effect on your business. If done properly, Processes will function more efficiently in 3 to 6 months, employees will feel satisfied and Appreciated for making business improvements and ultimately stakeholders will see the benefit Wrong Project Selection If project selection is done improperly, a project may be selected that doesn't have the full business buy-in, project roadblocks may not be removed due to other business priorities, the team may feel Ineffective and the end result may be less than ideal. No one wins in this situation

140

Six Sigma Project Selection Filters 1. Company Filters and 2. Six Sigma FiltersOnce the potential projects are identified next step is to verify, whether these are six sigma project or not ? There are two type of filters to qualify the potential projects as six sigma projects. They are 1) Company filters and 2) Six Sigma Filters

141

1. Company FiltersAligned with company Strategy? No Why do it? Drop No Yes No Does project lead USD--- min. per annum? 1) Is it a severe pain in the process 2) Is documental proof available to prove pain 3) Is the pain sensed by process experts

Yes

Yes (all 3)

No

Can it be completed in 4 to 6 months?Yes

Scope is too large. Consider making Multiple projects.

Move to Six Sigma Filters

142

2. Six Sigma FiltersIs the solution already known? No Is needed data available to quantify the problem? Yes Is the root yes cause known? No Is someone else working on the problem? no No Yes Derive and implement the solution No Implement a data collection plan yes Implement the solution

Yes

Implement the other teams solution

Six Sigma Potential Project

143

Types of Projects1. Projects cutting across processes focusing on CTQ. 2. Projects cutting across CTQ focused on process. 3. Projects focusing on a specific CTQ for a process.

144

SS Project Execution Process MapClient & Top Management

Voice Of Customer & Pain Areas

Champion

Recognition of Improvement opportunity

Problem Definition Project Agreement & Target setting Project Review at Pre-defined Frequency (MBB & Champion)

MBB

Project Evaluation & Methodology selection (DMAIC / DMADV)

Finance Controller

Initial Financial Validation

Final Financial Validation

Project Validation, Closure and signoff by champion, MBB and Financial controller

BB

Project Charter

(Champion / sponsor)

Project Kick Off (MBB & Champion are secondary resp.)

Project Execution ( DMAIC / DMADV ) (MBB & Champion are sponsor )

GB & Team

Integration & Deliver

Improvement Project Execution1- MBB 1- BB, 1- GB 4 - PA DMAIC Project

Project 1

Project 2 Project 3

Business Process Improvement

1- BB, 1- GB 4 - PA DMADV Project

Project 1

Project 2 Project 3

1- GB 4 - PA

Project 1

REIS Project

Project 2 Project 3146

Six Sigma DMAIC Methodology

147

Overview of DMAIC Methodology DMAIC Vs DMADV DMAIC Methodology Define Measure Analyze Improve and Control

148

DMAIC Vs DMADVIMPROVEMENT PROCESS CREATION PROCESS

(DMAIC)Define, Measure, Analyse, Improve and Control Improve processes, products, services, and organisation to 6 Sigma quality

(DMADV)Define, Measure, Analyse, Design and ValidateCreate new processes, products, services, and plants to 6 Sigma quality. It is also Called DFSS

Process ManagementPROCESS MANAGEMENT Leverage and sustain the gains achieved by improvement and creation with BPMS, QMS, COPC etc149

DMAIC Methodology

Step 5: CONTROL

Step 1: DEFINE

DMAIC Define Define project goals & customer (internal & external) deliverables Measure Measure the process to determine current performance

DMAICStep 4: IMPROVE

Step 2: MEASURE Improve Improve the process by eliminatingdefects

Analyze Analyze and determine the root cause of the defects

Control

Control future performance

Step 3: ANALYZE

150

DefineObjective:is to define the problem in a clear manner and in a way that is related to an internal or external customer.

Deliverables: Fully trained team, committed to work on improvement project. Customers identified and defined (CTQs) Project charter and Process map

Check points: Trained team Customers (and CTQs) Project Charter Business process mapping (SIPOC) Process Map151

MeasureObjectiveto measure what you care about most, making certain that your measurement approach is sound and not based on questionable formulas or data.

Deliverables: Key measures identification, data collection plan, data on process variation performance baseline, sigma level calculation.

Check points: Identification of Key measures - Defining high impact defects Data Collection Plan - Data collection Measurement system analysis Process Variation Long term and short term variability accounted for. Performance Baseline/Sigma Calculation Measure baseline process performance (capability, yield, sigma level).152

AnalyzeObjectiveis to look for the critical root causes of the variability by applying statistical tools to determine what factors are contributing to the problem.

Deliverables: Data and process analysis, root cause analysis, quantifying the gap/opportunity.

Check points: Data and Process Analysis Identification of gaps between current performance and the goal performance Root Cause Analysis- Verify and quantify the root causes of variation Quantifying the Gap/Opportunity - Determine the performance gap.

153

ImproveObjective is to determine and confirm the optimal solution.

Deliverables: Generate (and test) possible solutions, select the best solutions, design implementation plan Check points: Generating (and Testing) Possible Solutions Selecting the best Solution (s) Designing Implementation Plan

154

ControlObjectiveis to be sure the quality improvements remain in effect and the problem does not recur.

Deliverables: Documentation and implementation of monitoring plan, standardized process, documented procedures, response plan established and deployed, transfer of ownership (project closure).

Check points: Monitoring Plan Process Standardization Documented Procedures Transfer of Ownership (Project Closure)

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Define Phase

156

DefineMain ActivitiesDefine Opportunities

1.0

Define

Step 1: Identify customer & their care about. Convert their needs in to Critical to Satisfaction (CTS) i.e. CTQ Critical to quality, CTC Critical to Cost & CTD Critical to Delivery. Step 2: Develop Project Charter reporting improvement opportunity and effective project team

Main Tools usedProject Charter

Define Phase OutcomesGap Analysis List of Project CTQs QFD/CTQ Tree Signed off Project charter Team Charter CCRs SIPOC Macro Level Process Map157

VOC

Problem Statement Goal Statement Project team

Business Case Project Scope Project Timeline

Baseline

Target

SIPOC OC S I Process Process Map

Define Phase Topics Project Charter Team Charter SIPOC

Process Mapping Top Down Model Cross Functional Process Mapping & ICOM model

158

Project Charter

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Project CharterWhat Is A Project Charter? A project charter is a document that provides purpose and goals for an improvement team

Six Major Elements of a Project Charter1. Business Case Explanation Of Why To Do This Project 2. Problem And Goal Statements Description Of The Problem/Opportunity And objective In Clear, Concise And Measurable Terms 3. Project Scope Defined project beginning and end points 4. Milestones Key Steps And Dates To Achieve Goal 5. Roles People, Expectations, Responsibilities 6. Financial Impact Savings, impact on bottom-line

160

Business CaseBusiness Case Development The business case describes the benefit for undertaking a project. The business case addresses the following questions: Does this project align with other business initiatives? What is the focus for the project team?

What impacts will this project have on other business units and employees? What benefits will be derived from this project? Has the value of the benefits been quantified?

161

Problem StatementDescription Of The Pain

What Is Wrong Or Not Meeting Our Customers Needs? Who is the customer of the process ? What is the process ?

When And Where Do The Problems Occur?

How Big Is The Problem?Whats The Impact Of The Problem? If I let it be what will happen ? If I reduce it what will happen ? If I increase it what will happen ?

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Problem Statement ExamplePoor Example:Weak Problem statement Our Fatal accuracy score is at 80% against the client target of 95% and we Need to improve it

Improved Example:Fatal accuracy score (what) this quarter (when) has been observed to be at 80% for the last 4 months (extent) against the client target 95% which has significant impact on customer satisfaction. (impact)

163

The Problem StatementKey Considerations/Potential Pitfalls

Is The Problem Based On Observation (Fact) or Assumption (Guess)? Does The Problem Statement Prejudge A Root Cause? Can Data Be Collected By The Team To Verify and Analyze The Problem? Is The Problem Statement Too Narrowly or Broadly Defined? Is A Solution Included In The Statement? Would Customers Be Happy If They Knew We Were Working On This?

164

The Goal StatementProject Objective

Definition of The Improvement The Team Is Seeking To Accomplish Starts With . Reduce, Eliminate, Control, Increase. Tends To Start Broadly Eventually Should Include Measurable Target And Completion Date Must Not Assign Blame, Presume Cause, Or Prescribe Solution!

165

SMART Problem And Goal Statements

Specific

MeasurableAttainable

RelevantTime Bound166

Goal Statement ExamplePoor Example: Put in place a Transaction monitoring evaluation system to increase the fatal accuracy.

Improved Example: Increase the fatal accuracy from the existing 80% to 95% by the end of first quarter 2005.

167

Project Scope What Process Will The Team Focus On? What Are The Boundaries Of The Process We Are To Improve? Start Point? Stop Point?

What Resources Are Available To The Team? What (If Anything) Is Out Of Bounds For The Team?

What (If Any) Constraints Must The Team Work Under? What Is The Time Commitment Expected Of Team Members? What Will Happen To Our Regular Jobs While We Are Doing The Project?168

8 Steps to Scope a Project1. Identify the customer Who receives the process output? May be an internal or external customer 2. Define customers expectations and needs Ask the customer Think like the customer Rank or prioritize the expectations 3. Clearly specify your deliverables tied to those expectations What are the process outputs? Tangible and intangible deliverables Rank or prioritize the deliverables Rank your confidence in meeting each deliverable 4. Identify CTQs for those deliverables What are the specific, measurable attributes that are most critical in the deliverables Select those that have the greatest impact on customer satisfaction

169

8 Steps to Scope a Project5. Map your process The process of producing the deliverables The process as it is working prior to the project If you are delivering something, there is a process, even if it has not been formalized 6. Determine where in the process the CTQs can be most seriously affected Use a detailed flowchart Estimate which steps contain the most variability 7. Evaluate which CTQs have the greatest opportunity for improvement Consider available resources Compare variation in the processes with the various CTQs Emphasize process steps which are under the control of the team conducting the project 8. Define the project to improve the CTQs you have selected Define the defect to be attacked

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Importance of Scoping Poor/improper scoping may result in following:

Team loses interest in the project Project becomes difficult to implement Even after implementation, the desired/significant benefits are not seen Team focuses on trivial pain areas, and missing out the vital

ones Process selected is too broad to handle or too small to realise breakthrough improvements.171

Milestones A preliminary High Level Project Plan with dates

Tied to phases of DMAIC process Should be aggressive (dont miss window of opportunity ) Should be realistic ( dont force yourself into corrective rather than preventative solutions)

1-May Define Measur e Analyze Improve

7-May

16-Jun

23-Jun

7-Jul

Week : Review Charter with Champion Collect VOC Complete Map

1 X

2

3 4

X X

X X

Validate MapCollect Data

XX

Control

172

Take Aways Project Charter Key elements of a charter include: Business Case, Problem and Goal Statements, Project Scope, Milestones, and Roles. The team charter is a vital part of the projects overall success. It communicates the project direction to all members of the team. A Problem Statement describes what is wrong while a Goal Statement defines the improvement objective. A charter clarifies what is expected of the project team, keeps the team focused, keeps the team aligned with organizational priorities, and transfers the project from the champion to the improvement team

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Project CharterGoal statement:Problem Statement :

Example

Start1 Mar 05

End30 May 05

ResponsesProject Sponsor MBB Project Leader Black Belt NameMEMBERSxxxxxxXxxx (YB)

Reduction of rework from 38% to 5%

xxxxxxxxx

Sign

The rework percentage in this quarter (Apr05 to June05) has been observed to be at 38% based on the system reports which is leading to over stretching of PE to meet the production targets.In-scope :All exiting sub processes in the process

jkafkj jkjklaj dxcv Target

Out-scope :Any new sub-process to be adding with in the project period

Measurable Goals : Rework reduction Unit: Percentage

Current

Current Target

38

5

2.5

4.2

Business case

Estimated Saving Expected, ( 1 Fin. Year)Revenue Enhancement Expense Reduction

Rework is one of the main concern area in our xxx process. Due to rework, most of our PE are over stretching their working hours. Our quality percentage is being maintained below the SLA.The client also concern about the issue and suggested to take action with in 3 months to improve the same. Failure of the same may lead to employee attrition and loss of business.IMPCHG/QLTY/TMPL/6111 Version 1.0, Copy if printed

Loss AvoidanceCosts

50,000 USD

Basic Schedule Define 16.03.05 Measure 25.03.05 Analyze 07.04.05

Improve 21.04.05Control 06.05.05

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Project Scoping responsibility Matrix

Scope the Project Develop Team Charter

GB, BB, Champion GB, BB

175

Exercise 1.6 (15 minutes)Project Scoping

1. Refer to your workbook.2. Define in-scope & out-scope given project example

176

Team Charter

177

Team CharterTeam Roles Refresh Sponsor Review the project progress once a month Provide/modify direction/alignment with business realities Provide resources required from time to time Remove Roadblocks Team Charter explains following How do you want the champion to work with the team? Is the teams role to implement or recommend? When must the team go to the champion for approval? What authority does the team have to act independently? What and how do you want to inform the champion about the teams progress? What is the role of the team leader and the team coach? Are the right members on the team? Functionally? Hierarchically?

Black Belt/MBB Provide content knowledge on Six Sigma tools to the teamProject Leader Keep the team focused. Arrange logistics and team meetings and raise issues with Sponsor Team Member (s) Participate in meetings, collect data, do analysis using Quality tools, provide subject matter expertise related to process

178

Exercise 1.7 (45 minutes)Team Charter Breakout Activity 1. Refer to your workbook.2. Practice writing problem and goal statements

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SIPOC

181

SIPOCSIPOC: A tool to identify all relevant elements of a process Helps to understand a complex process better Graphic display of steps, events and operations that constitute a process S - Suppliers I - Inputs Process

P -

O - Outputs C Customers

182

SIPOCSuppliers People who provide input to the process

Inputs Information, material etc., goes into the process from some other group of people (supplier)

Process Process is a series of activities that takes an input, adds value to it and produces an output for a customer

O

34973369 Six Sigma Black Belt Wk1 Define Amp Measure

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removing duplicate

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