Kaam Ki Six Sigma

8/9/2019 Kaam Ki Six Sigma

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WELCOMEWELCOME

ToTo

THETHESix Sigma Yellow BeltSix Sigma Yellow Belt

ProgramProgram


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If you have any questions --ask! Someone else may need to have additional

explanations also!

Share your thoughts and experiences relating to the topics we discuss.

When we take breaks --be prompt in returning so we can stay on schedule.

There will be a number of activities --please take an active role --each

activity is intended to reinforce learning.

Listen as an ally --How can I use this tool or apply this concept?

Only one person speaking at a time. Keep side discussions to a minimum.

Please turn cellular phones to a silent mode.( Rs. 50 X Fine )

TRAINING GROUND RULES


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TRAINING GROUND RULES

Adult learning theory: You are responsible for your own learning,this requires

your active participation:

Questions are good, not a sign of ignorance, but part of a learning

experience.

Applying learning's right away is very important. We learn when we use

knowledge in our lives.

Accelerating the need to use the lessons is a key way to assure that we

really learn!


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Course Content

MNYLs Perspective on Quality

Why Six Sigma

Apply the Six Sigma methodology to improve processes

Clarity on Six Sigma DMAIC Methodology

Your Role going Forwards

OBJECTIVES


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What is Quality

Quality is Fitness for use Juran

A product or service possesses quality if it helps somebody and

enjoys a good and sustainable marketDeming

Quality is conformance to requirementsCrossby

Quality is as perceived by Customer Anonymous

Quality


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Quality Policy - MNYL


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The MNYL Quality JourneyThe MNYL Quality Journey

2002 2003 - 2004 2005 - 2006

Basic Awareness &Culture

Basic Processes &

Procedure ASAT/ CSAT

Small Improvements &Process Orientation

ISO Certification

My Kontribution (Kaizen)

Improvement Projects

(Polivartan)

Project Management(C4G,

Munich Re etc) Mystery Shopping

2007 - 2008

QUALITY

And

BUSINESS

EXCELLENCE

Consolidation

Six Sigma Launch

Service Delivery Forum

Improvement Projects

(Servottam,PPP,PLS)

Cost Mgmt Program

Service Scorecard

Zonal Quality

ISO Recertification

Six Sigma Excellence

Award (Sakaal)


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CULTURE BUILDING

People Engagement & Empowerment MyKontribution, Training, ISO, Six Sigma

Recognition & Rewards, Communication

INTEGRATION / PERFORMANCE / RESULTS

Measurements / Balance Scorecard

CONTINUOUS IMPROVEMENT

Six Sigma / Project Management

CUSTOMER PERSPECTIVEListening Posts (CSAT / ASAT)

PROCESS EXCELLENCE

BPMS ISO Audits/ Process and dashboard orientation

Quality & Business Excellence Model


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The MNYL Quality StructureThe MNYL Quality Structure

Functional QualityCouncils (HO/Zonal)

Members

Black Belt/Green Belt (Team Leader)Yellow Belts

Master Black Belt

Quality Leader

Business QualityCouncil

Champion

Improvement Team

Gary Bennett - CEO

Sunil Sharma COO

Rajesh Sud Distribution

Sanjeev Mago Ops & S

Rajit Mehta HR Sunil Kakar Finance

Amit Kumar IT

Vineet Sharma BusinessExcellence & Quality


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Higher level of learning in Basic Quality Tools.

Yellow belt projects create applicable benefits for MNYL.

Certification methodology ensures focussed Learning.

Nursery for creating Future Quality Project leaders.

Get taste of Quality and learn usable tools in a simple

way.

Direct Nomination to the Green Belt program on

certification

WIFM


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The Yellow belt certification program is a simple 5- Step process:

STEP 1 : Send nominations to the Quality team for participation in the YBprogram.

STEP 2 : Participate in the Two day Yellow Belt program post invitationfrom Q-Team.

STEP 3 : Successfully pass the Yellow Belt Post Trainingassessment.LESTONE I : YELLOW BELT TRAINED CERTIFICATE

STEP 4 : Register your yellow belt project .

STEP 5: Report successful completion of the Yellow Belt project.

On project completion fill project details in format provided. Sign off from Supervisor and Quality SPOC (BB). Last date to submit is before 28th of every month. Every Ist week of the Month YB certification will happen

Certification Process


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Let`s know little

bit more about

Six Sigma


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Evolution of SS What is 6


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Measurable & data based

Customer Focused

Removes defects from products & services

Encompasses Manufacturing, Software and Transactional

processes

Sustainable competitive edge

Global acceptance

Project based, with milestones

Integrates well with other Quality initiatives like ISO, Phil Cross by

etc.

Why we chose Six Sigma


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What is 6

What is different about

Six Sigma


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Let us Start with . What is 6

What`s Not New

The vast majority of the tools were developed more than 50 years

ago

Many Six Sigma projects (especially in transactional areas) will not

require sophisticated / esoteric analytical tools.

Improvement comes on a project by project basis.

Management care and feeding is required.


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What is New Strategically ? What is 6

Alignment of Six Sigma Initiative with Business Objectives

Accountability

Metrics

Activity based

Outcome based.

Executive Selection Of :

Champions to manage Projects

Projects formation

Belts to execute projects

Green

Black

Master Black


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What is New Tactically? What is 6

Dedicated Resources.

Improvements Instutionalized and Cross-pollinated

Structure and Organization of Tools Define

Measure

Analyze

Improve

Control

Personal Computer Technology Facilitates :

Statistics

Extracting information from data


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Advantages of This Type of Approach

Have a common language Sensitize the organization in the use of statistical tools

Develop the internal supplier/customer relationship

Benchmarking Work on the most significant objectives

Promote working in teams


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Common Language Z Value

A Universal Measurement Scale ...

3 45

67

668106210

2333.4

Sigma

DPMOOn one condition :

Calculate the defects and

estimate the opportunitiesin the same way...


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Need for Z Value Z Value

Process Performance

Purchase Order Generation

Accounts Receivables

Customer Service

Supplier Delivery

98% Accuracy

33 days average aging

82% rated 4 or 5 on responsiveness

95 % on-time delivery

Which process is performing best ?


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Character of 6 Why 6

OutputVariables

Manage the outputs.

A Traditional View

Sales Growth

Market Share

Profitability

OutputVariables

InputVariables

Manage the inputs; respondto the outputs.

The Six Sigma View

Sales Growth

Market Share

Profitability

Customer Satisfaction

Product Quality

On-Time DeliveryCOQ

Credit TermsRelationships

Service

CustomerTraining


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Motorola

Allied Signals

ABB

GE

Texas Instruments

Citibank Sony

Honda

Polaroid Sun Microsystems

Toshiba

Canon

Hitachi

J P Morgan Chase

Seagate

Tata Steel ISPAT

WIPRO

AT & TWhirlpool

Six Sigma Co-travelers


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What is 6

6

LAYMANS DEFINITION

6 SIGMA MEANS ONE PIN HEAD UNCLEANED

AREA OF 1500 SQ FOOT CARPET AREA

STATISTICAL DEFINITION

3.4 DEFECTS / MILLION ( 1.5 SIGMA SHIFT)OR 2 DEFECTS / BILLION ( 0 SHIFT)

IT MEANS OPERATING IN1 / 2 THE

ALLOWABLE SPECIFICATION LIMIT

6 SIGMA DEFINITION


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What are the Statistics What is 6

Two Meanings of Sigma

- Greek alphabet

The term Sigma is used to designate the distribution or spreadabout the mean ( average ) of any process or procedure.

For a business processes , the sigma capability ( z value )

Is a metric that indicates how well that process is performing defect freework. A defect is anything that results in customer dissatisfaction.

As defects

Go down

The Sigma Capability

Goes up ..D


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3.4

233

6210

66807

308537

697672

SweetestFruit

AverageProcesses

LowHanging

SixSigma

Five Sigma

FourSigma

Three Sigma

Two Sigma

OneSigma

GroundFruit

World Class

Focus on defects

Logic & Intuition

Seven Basic tools

BulkfruitProcess Characterization &

Optimization (DMAIC)

Design for Six Sigma (DFSS)


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What are the Statistics What is 6

6 3.43.4 99.9996699.99966

5 233 99.97670

4 6,210 99.37900

3 66,807 93.33190

2 308,537 69.12300

PPM %age 1 misspelled word in all of the bookscontained in a small library

$340 indebtedness per $100 millionsassets

1.8 minutes per year

1.5 misspelled words per page in abook

$6.7 millions indebtedness per $100millions assets

24 days per year


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Paradigm Shift Why 6

Are you satisfied

with 99 % OKin your life ???

Are you satisfied

with 99 % OKin your life ???


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We demand High Quality in our daily lives. . .

99.99966% Good (6 Sigma)

20,000 lost letters per hour

Unsafe drinking water foralmost 15 minutes each day

5,000 incorrect surgicaloperations per week

Two short or long landings atmost major airports each day

200,000 wrong drugprescriptions each year

No electricity for seven hourseach month

Seven articles of mail lost per hour

One unsafe minute every sevenmonths

1.7 incorrect operations per week

One short or long landing every fiveyears at each airport

68 wrong prescriptions per year

One hour without electricity every34 years

99% Good (3.8 Sigma)

. . .so why not in our businesses?. . .so why not in our businesses?


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Paradigm Shift Why 6

Six Sigma: An Ambitious Objective?

Accurate to 99.99966 % ( less than 3.4 defects for each millionopportunities ) could appear excessive....!

99.9% is already VERY GOOD !But what could happen at a quality level of 99.9% (i.e., 1000 ppm),

in our everyday lives (about 4.6s)?

4000 wrong medical prescriptions each year More than 3000 newborns accidentally falling

from the hands of nurses or doctors each year

Two long or short landings at American airports each day

400 letters per hour which never arrive at their destination


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Paradigm Shift Why 6Comparing 6 with 3

The 3 Company The 6 Company Spends 15~25%of sales dollars on cost

of failure

Produces 66,807 ppm opportunities

Relies on inspection to find defects

Believes high quality is expensive

Does not have a disciplined approachto gather and analyze data

Benchmarks themselves against theircompetition

Believes 99% is good enough

Define CTQs internally

Spends 5%of sales dollars on cost of failure

Produces 3.4 ppm opportunities

Relies on capable processes that dontproduce defects

Knows that the high quality producer isthe low cost producer

Use Measure, Analyze, Improve, Controland Measure, Analyze, Design

Benchmarks themselves against the bestin the world

Believes 99% is unacceptable

Define CTQs externally


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1. It is a statistical measurement. It tells us how good our products, services, and processes really are.

6 helps us to establish our course and gauge our pace in the race for total

customer satisfaction.

2. It is a improvement tool.

Its a full packaged tool applying to design, manufacturing, sales & SVC.

3. It is a business strategy It can greatly help us gain a competitive edge

As you improve the rating of a process, the product quality improves and costs go

down. Naturally, the customer becomes more satisfied as a result.

4. It is a philosophy. This is one of working smarter, not harder.

Also it makes fewer and fewer mistakes in everything we do.

6 as the Biz Strategy What is 6


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What is New Strategically ? What is 6

Alignment of Six Sigma Initiative with Business Objectives

Accountability

Metrics

Activity based

Outcome based.

Executive Selection Of :

Champions to manage Projects Projects formation

Belts to execute projects

Green

Black Master Black


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What is New Tactically? What is 6

Dedicated Resources.

Improvements Instutionalized and Cross-pollinated

Structure and Organization of Tools Define

Measure

Analyze

Improve

Control

Personal Computer Technology Facilitates :

Statistics

Extracting information from data


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AIM of 6 the Activity What is 6

Object

of 6

is

Shift toTarget

Reducingvariation

Objectof 6 is

Shift toTarget

Reducingvariation

USLUSL

T

Precise but not Accurate

USLUSL

T

Shifting to Target &Reducing Variation

Shift toTarget

Reducing

Variation

USLUSL

T

Accurate but not Precise

V i ti N d ?


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Variation Need ?

Why isn`t the average alone, good enough ?

Target = 67.954.056.95

5.05

6.00

6.105.906.05

5.956.00

We need a way to quantify the spreadin the data

Wh t i V i ti Wh t i 6


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What is Variation What is 6

Why did this happen ?Why did this happen ?

Wh t i V i ti What is 6


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So, we need additional information on variation. Data which expressesvariation we call Standard Deviation., Using Greek Alphabet, (Sigma)

represent the standard deviation.

We may make a big mistakeonly because we makedecision based on just

average.

Why did this happen ?Why did this happen ?

What is Variation What is 6

Variation Exercise


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(Count the Letter(Count the Letter ee in the following text)in the following text)

The Necessity of Training Farm Hands for First Class Farms in the

Fatherly Handling of Farm Live Stock is Foremost in the Eyes of

Farm Owners. Since the Forefathers of the Farm Owners Trained the

Farm Hands for First Class Farms in the Fatherly Handling of Farm

Live Stock, the Farm Owners Feel they should carry on with the

Family Tradition of Training Farm Hands of First Class Farmers in

the Fatherly Handling of Farm Live Stock Because they Believe it is

the Basis of Good Fundamental Farm Management

Variation Exercise

Six Sigma Methodologies


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Six Sigm a

DMAIC DFSS

Six Sigma Methodologies

Existingproduct/Service/Process

Process performance needsimprovement.

Not meeting customerspecification

New product /Service/Process

Existingproduct/Service/Processoptimized using DMAIC and

still doesn't meet the level ofcustomer specification or sixsigma level

Six Sigma Team Roles &Responsibilities


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Six Sigma Team Roles &Responsibilities

Sponsor Champion

Define Big Ys of Project Define ProjectDefine Strategic Business Objectives Select Team Members

Select MBB & BBs Clear Project Roadblocks

Select & Sponsor BB & GB Projects Orient Team

Review Progress Review Progress

Approve Project Definition & closure Project Speaker

Black Belt (BB) Green Belt (GB)

Full time Resource to Six Sigma Projects Part time Resource to Six Sigma Projects

Help Champion to select team members Use Quality tools to improve Process

Make Breakthrough Improvement in Process Execute & Deliver Project Results (Min 2 per year)

Execute & Deliver Project Results (5-10 per year) Communicate Project Statusts

Mentor & Guide Green Belts Sustain improved Process after Improvement

Training on Six Sigma tools & techniquesLead Process Improvement teams

Communicate Project Status

Master Black Belt (MBB) Six Sigma Team

Depth Understanding -Philosophy,Goal & Application Functional Experts

Six Sigma Expert Part time Assignment

Train & Coach BBs,GBs & Team members Participate in the meetingDrive/Direct/Steer Projects to success Help with administrative tasks

Approve Project Definit ion & Project Closure Meet with Champion for review

Business focus & dedication to Quality Make Recommendation or Change

Project Implementation & Closure

How to do 6


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How to do 6 ?

DMAIC Approach

CONTENTS

The DMAIC Approach How to do 6


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PracticalProblem

StatisticalProblem

Statisticalsolution

Practicalsolution

Disciplined Problem-Solving thru DMAIC


Why DMAIC Approach How to do 6


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PracticalPracticalProblemProblem MeasureMeasurePhasePhase

AnalyzeAnalyze

PhasePhase

StatisticalStatistical

ProblemProblem

ImproveImprove

PhasePhaseStatisticalStatistical

SolutionSolution

ControlControl

PhasePhasePracticalPractical

SolutionSolution

W

e

Love

toJump

tothisPart

We tendtostartfromanInternalPerspective StartfromOutside-In!

We Judge by Averages Start looking

at Variance!!

Why DMAIC Approach How to do 6



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CONTROLCONTROL

Contro l Improvements

to keep the Process onthe New Course(Susta ining on the ga ins)

IMPROVEIMPROVE

Design Creat ive Solutionto fix & prevent problemusing technology (mistakeproo fing) and d isc ip line

Study & Ana lyse MicroLevel Activities which arec rea ting Varia tion

ANALYZEANALYZE

Determine Root Cause ofDefects & Opportunities of

Improvement Identify Sources of Variat ion

Identify Resource Required& Cases what could causec hange to fa il (Fa ilureModes)

MEASUREMEASURE

Deve lop Da ta Collec tionPlan for each Metricsdefined

Collec t Da ta fro m m any

sources to determine typeof defec ts

Compare this w ith Vo ice o fCusto mer-Survey Result

Develop how Progress willbe measured

DEFINEDEFINE

Define Custom ers & their

expectations

Define Scope (Sta rt & End

of Proc ess)

Define Present and

Futuristic Proc ess Map Define Deliverab les &

Time Frames


The Focus of Six Sigma


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Y = f( X)

To get results ,should we focus our behavior on the Y or X?

Xi.Xn

Independent

Input- Process

Cause

Problem

Control

Y

Dependent

Output

Effect

Symptom

Monitor

Historically the Y,.with Six Sigma the Xs

The Focus of Six Sigma

D-M-A-I-C


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MEASURE

Identify Project CTQDevelop Project CharterDefine Process Map

Develop MeasuresEstablish Performance StandardEstablish Process Capability

Define Performance ObjectivesIdentify Source of Variations Monitor Improved PerformancesStandardization & Documentation

Generate & SelectSolutionsImplement Solutions

CONTROLIMPROVEANALYZEMEASUREDEFINE

Road Map : Define


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p

MEASURE CONTROLIMPROVEANALYZEMEASUREDEFINE

Identify Project CTQ Develop Project Charter Define Process MAP

DMAIC DMAIC

6 Common termCase Study


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y

ABCL Ltd. has been in the business of providing life insurancecovers. For the last 25 years the company was enjoying a state ofmonopoly. Due to revision in the government policy in the year 2002the company saw series of private players entering into the market.Data provided by the marketing department in the last managementcommittee meeting showed that the company's market share hasfurther dipped from 89% in Quarter 4 of 2002 to 82% at the end ofQtr 1 in 2003. Concerned by this, management advised the qualityhead to conduct a customer satisfaction survey and find out the

reasons for low share. The quality department conducted acustomer satisfaction survey of 50 customers who had bought thepolicy from ABCL Ltd. in the period of January to April 2003. Thesurvey results showed customer dissatisfaction due to high policyissuance TAT. The average TAT for policy issuance as perceived bythe customers was 30 days. Based on the results it was estimatedthat the company is losing business to the tune of Rs.20 lakhs permonth.

DMAIC



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y

Prepare a Project Charter using the case study

Participants to use Yellow Belt Worksheet

DMAIC



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Problem Statement: Policy Issuance TAT (What) of 30 days (extent)for the period of January April 2003 (when) is leading to a loss of2.4 crores per annum (impact).

DMAIC

Goal Statement: Reduce (verb) the TAT from 30 days (From) to 15 days(goal) by August 30 2003 (deadline).

CTQ Examples 6 Common term


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Area : Call CenterCustomer Quote 'I consistently wait too long to speak to a

representative.'

CTQ Name :

CTQ Measure

CTQSpecification

Representative Responsiveness

Time on hold (seconds)

Less than 60 seconds from call connection to the automated

response system

DMAIC

6 Common termExamples


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CTQ Name :

CTQ Measure :

CTQ Specification :

Typographic Quality

Number of typographical mistakes

Zero typographical mistakes

Area: Book Publisher

Customer Quote: 'I can't stand typos in books I purchase.

DMAIC

Define: Identify Project CTQs


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Who is the Customer?

ProcessInput Output

CustomerSupplier

What is critical to the Quality of the Process?

according to your Customer !

PROCESS:

DMAIC

Example of SIPOC


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Example of a Photocopying Process

DMAIC

SIPOC High Level Process Mapping


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Objective :Developing High level Process mapping

Work in a team ,Develop a SIPOC format Process MAP

Define & name the process

Establish Start & End Points

Identify Major Customers and Output Requirement of the Process

Identify Key Suppliers and Inputs to the Process Determine & MAP the 4-7 steps of the Process

Time : 10 Minutes

DMAIC

Scoping


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Scoping

Longitudinal

Lateral

Longitudinal

Starts after receipt of Proposal

Form from the customer

Ends at the despatch from HOLateral

Despatches for a Particular Zone

All despatches during shift A

Despatch through transporter X

DMAIC

Road Map : Measure


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Develop MeasuresEstablish Performance

StandardEstablish Process

Capability

D AIC

What is 6Data Types


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Discrete

D AIC

Summarize Data


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Express Centre of data

Average (Mean)

Median

Mode

Express Centre of data

Range

SPAN

Standard Deviation

Variance

(Centre)

(Variation)

D AIC

Power of Measure What is 6


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We dont know what we dont know.

If we cant express what we know in the formof numbers, we really dont know much about

it.

If we dont know much about it,we cant control it.

If we cant control it, we are at the mercy of

chance.

D AIC

Power of Measure What is 6


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Our survival is dependent upon growing the business.

Our business growth is largely determined by customer satisfaction.Customer satisfaction is governed by quality, price, and delivery.

Quality, price, and delivery are controlled by process capability.

Our Process capability is greatly limited by variation.

Process variation leads to an increase in defects, cost, and cycle time.

To eliminate variation, we must apply the right knowledge.

In order to apply the right knowledge, we must first measure it.

Measure the problem, well get the right knowledge.

D AIC

What is 6The Origin of Sampling


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1. Shake it well

2. Take one spoon

3. Make Decision

4. Action

No bias

Sampling

Based on

Statistics

How to Collect Data ?

D AIC

Operational Definition One illustration


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How much liquid has been consumed?Half Glass...is the Quantity same?

D AIC

Some Tools


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Histogram

Scatter Plot

Pie Chart

Pareto

CONTENTS

D AIC

Histogram


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Purpose : Use to examine the shape and spread of sample data

HISTOGRAM divides sample values into many intervals called bins.Bars represent the number of observations falling within each bin (itsfrequency). Observations that fall exactly on an interval boundary areincluded in the interval

D AI

P S tt l t l f l f l tti i bl ti

Scatter Plot


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Purpose : Scatterplots are also useful for plotting a variable over time.

This is especially useful for data that are not entered in chronologicalorder or were collected at irregular intervals.

D AIC

Pie Chart


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Purpose : Used to display the proportion of each data categoryrelative to the whole data set.

D AI

Pareto Chart


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Purpose : A Pareto chart can be used to prioritize defects accordingto type or source of defect. Basically, a Pareto chart is a type of bargraph.

It can help weed out the vital few types or sources of defects from the

trivialmany. It works on principle 80-20. It is a prioritization chartwhich helps to decide the improvement goals

D AI

Pareto Chart


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Othe

rsD7D6D5D4D3D2D1

915172045506080

3.05.15.76.815.216.920.327.0

100.097.091.986.179.464.247.327.0

300

200

100

0

100

80

60

40

20

0

Defect

Count

Percent

Cum %

Percent

Count

Pareto Chart

Approx 80% of Defects from Defect D1+D2+D3+D4

D AI

Exercise


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All Team members to note down the following about themselvesAll Team members to note down the following about themselves

1.1. Height and WeightHeight and Weight2.2. Distance you drive to WorkDistance you drive to Work

3.3. Mode of Vehicle usedMode of Vehicle used

4.4. Colour of Cab usedColour of Cab used

5.5. Time taken in the morningTime taken in the morning6.6. Time taken in the eveningTime taken in the evening

7.7. Number of Co TravellersNumber of Co Travellers

8.8. Number of Males and Females in CabNumber of Males and Females in Cab

D AIC

D t C ll ti t l t t b d i d d d t t b fillData Collection template to be designed and own data to be filledd

Exercise


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Data Collection template to be designed and own data to be filleData Collection template to be designed and own data to be filledd

Team Leader to Collect Data from all the other membersTeam Leader to Collect Data from all the other members

Transfer to Flip chartTransfer to Flip chart

Leader of each group to move around from table to tableLeader of each group to move around from table to table

and collect consolidated dataand collect consolidated data

1.1. Create Histogram with Class Intervals on HeightCreate Histogram with Class Intervals on Height2.2. Create Scatter Plot on Height Vs. WeightCreate Scatter Plot on Height Vs. Weight

3.3. Create Pie Chart on Number of Males/ FemalesCreate Pie Chart on Number of Males/ Females

4.4. Create Pareto on Mode of VehicleCreate Pareto on Mode of Vehicle

D AIC



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Process Performance

Purchase Order Generation


Customer Service

Supplier Delivery

98% Accuracy


82% rated 4 or 5 on responsiveness


Which process is performing best ?None as there is no Common Benchmark

D AI


A Universal Measurement Scale


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A Universal Measurement Scale ...

34

56

7

668106210

2333.4

Sigma

DPMOOn one condition :

Calculate the defects andestimate the opportunities

in the same way...

D AIC



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Process Performance Z Value

Purchase order booking


Customer Service

Supplier Delivery

98% Accuracy


82% rated 4 or 5 on

responsiveness


Now we can say which is performing the best ?

There is a Common Benchmark without any Dimensions

3.54

1.54

2.91

3.29

D AIC

6 Common termDefect


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Defect :- Anything that results in customer dissatisfaction. Anything that

results in a Nonconformance

6 Common termDPU/DPO/DPMO


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Defects Per Unit : Number of defects per unitJudging the process as No good, we could not know if it had a defect.

So 6 handling it.

Ex) A Proposal form has 10 blanks, 2 blanks are wrong

DPU= Defect / Unit = 2 / 1 = 2

Defects Per Opportunity : Number of defects related opportunities per unit

Expanding concept of DPU by opportunities

Ex) A Proposal form has 10 blanks, 2 blanks are wrong

2 Defect / (1Unit x 10 Opportunity) = 0.2, DPO=0.2

Defect Per Million Opportunities : Value of DPO x 1,000,000,

Changing DPO to million unit because 6 uses PPM(Part Per Million)

Ex) DPMO = 0.2 DPO x 1,000,000 = 200,000

DPU

DPO

DPMO

6 Common termCTQ


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Definition of CTQ

Customer states as critical to qualityof product, service or process.

Main purpose of CTQ control is selectingthe factors to the most important to customer.

It is not hard to do, but right to do!

Ex.) Spec. of anything part

Accuracy and reliability of billing

statements

Time to repair

Courteousness

Most CTQs are customer-driven,but

risk, economics, and regulation may

drive others.

Typical Tools

Customer surveys

Focus Groups Interview

Customer needs Mapping

Quality function

deployment(QFD)

Quick Market Intelligence Logic Tree

Pareto Diagram

D AIC

CTQ Examples 6 Common term


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Area : Call CenterCustomer Quote 'I consistently wait too long to speak to a representative.'

CTQ Name :

CTQ Measure

CTQSpecification

Defect

Unit

Opportunity

Defects

Representative Responsiveness

Time on hold (seconds)

Less than 60 seconds from call connection to the automated

response system

Calls with hold time equal and greater than 60 seconds

Call

1 call

Sigma: 3.75263 calls21,501 calls

D AIC

6 Common termExamplesArea: Book Publisher


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CTQ Name :

CTQ Measure :

CTQ Specification :

Defect :

Unit :

Opportunity :

Defects :

Units :

Opportunities:

Typographic Quality

Number of typographical mistakes

Zero typographical mistakes

Any typographical mistakes

A word

Words per book

2 typographical mistakes

100,000 (500 words/page x 200 pages/book)

1 per word

Sigma: 5.61

Customer Quote: 'I can't stand typos in books I purchase.

D AIC

Road Map : Analyze


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Define PerformanceObjective

Identify Sourceof Variations

D AI


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OUTIN PROCESSPROCESS

. . . in theory. . . in theory

Every process looks like this. . .Every process looks like this. . .

DMAIC

What do you see here . . . Any clarity?


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Phone

Wire

Pad

Ring

ShadowTable

Pencil stand

Pens

Paper

DMAIC

See the Difference Now . . . .


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Process Mapping is a graphic display of steps & activities thatconstitute a process

Recall..Onepicture is

better than1000 words

DMAIC

Definition of a Process


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A Process Is A Collection Of Sequential ActivitiesThat Takes One Or More Kinds Of Input AndCreates An Output That Is Of Value To The

Customer

DMAIC

All Processes have variations


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All Repetitive Activities of a process have a certain amount offluctuations.

Input , Process & Output measures will fluctuates.

This fluctuation is called Variation.

Variation is the Voice of the Process.

Time

M

easurement

DMAIC

Variation is Evil ...Variation is Evil ...Process


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Target

X XXX X XX XXXX

XX

XXXXX

XX

XX

X

X

X

XX

XX

XXX XXX

XXX

X X

X

X

X

Every Human Activity Has Variability...

CustomerSpecification

defectsdefects

Understanding Variability & Customer SpecificationIs The Essence of Continuous Process ImprovementUnderstanding Variability & Customer SpecificationIs The Essence of Continuous Process Improvement

DMAIC

Process Flow Charting Symbols


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A process orTask

Start, End

Decision, Check

Storage point

Predefined

Activity

Delay

DMAIC

V l Add d W kNon Value-Added

W k

Nature of Work Value Analysis


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Process steps that areEssential to Produce & Deliver

the Product or Service to

meet the CustomersNeed & requirements.

Customer is willing to payFor the step.

Process steps that arenon-essential

To produce & deliver the

Product or Service to meet theCustomers Need & requirements.

Customer is not willing to payfor the step.

Process steps thatAre not essential

But that allowValue adding

Tasks to be doneBetter/faster

Value-Added Work Work

Value Enabling- Work

DMAIC

Type of Non-Value : Added Work


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Look for

Re-evaluate, Remake, Redo, Recall, Recheck, Rework,Repeat, Redesign, Revise, Reject, Retest, Reship, Return,Reissue, Re-measure, Retype

Internal failure

Preparation/Set-up Control/InspectionMove

External failureDelay

DMAIC

Team Exercise

Process Mapping


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Purpose : To get graphical illustration of the process whichcreates an output

List General Process steps & Major customer key Output variables(CTQ)

Identify Value added (VA) & non-value added (NVA) steps inprocess

Show CTQ at each process step.

CARES (Combine, Add, Re-arrange ,Eliminate, Simplify)

DMAIC

In any caseIn any case

Process


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YX functionfunction

In any case. . .In any case. . .

DMAIC

MAN METHOD

Process


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functionfunctionother TimeThisTime

NextTime

MachineServiceProduct

Material

ENVIRONMENT

MATERIAL

MEASUREMENT

Y = f( lots of xs)

MACHINE

DMAIC

MAN

Source & Type of Variations


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PRO

CESS

MAN

MACHINE

MATERIAL

METHOD

MOTHER NATURE

MEASUREMENT

Source of Variations-6Ms

Unexpected,Abnormal, Non-Random

Undue influence of the one ofthe 6Ms

SpecialCause

Expected, Normal,Random

No undue influence by one ofthe 6Ms

CommonCause

NamesDefinitionType

DMAIC

Preparing for the Analyze step


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Y = f ( X1,X2,X3,Xn)

Y = Relates to the Outputs

X = Relates to the Process & Inputs

Identify Xs that might Explain Variation in the Outputmeasures

Collect Data Efficiently Both the Ys & suspected Xs

Start thinking in Scientific Terms

DMAIC

Cause & Effect Diagram (Fishbone)

MACHINEMANMEASUREMENT


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DMAIC

MOTHER NATUREMETHODMATERIAL

Root Causes Grouped in Six Categorie

Man ,Machine, Material, Method,

Measurement & Mother Nature

5 Why Analysis

The 5 Whys is a technique used in the Analyze phase of the Six


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DMAIC

The 5 Whys is a technique used in the Analyze phase of the SixSigma DMAIC methodology. It's a great Six Sigma tool that doesn'tinvolve data segmentation, hypothesis testing, regression or otheradvanced statistical tools, and in many cases can be completed

without a data collection plan.

By repeatedly asking the question "Why" (five is a good rule ofthumb), you can peel away the layers of symptoms which can leadto the root cause of a problem. Very often the ostensible reason fora problem will lead you to another question. Although this techniqueis called "5 Whys," you may find that you will need to ask thequestion fewer or more times than five before you find the issue

related to a problem.

5 Why Analysis (Examples)

Problem Statement: Customers are unhappy because they are being shipped products thatdon't meet their specifications.


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1. Why are customers being shipped bad products?- Because manufacturing built the products to a specification that is different from what the customerand the sales person agreed to.

2. Why did manufacturing build the products to a different specification than that of sales?

- Because the sales person expedites work on the shop floor by calling the head of manufacturingdirectly to begin work. An error happened when the specifications were being communicated or writtendown.

3. Why does the sales person call the head of manufacturing directly to start work instead of followingthe procedure established in the company?

- Because the "start work" form requires the sales director's approval before work can begin andslows the manufacturing process (or stops it when the director is out of the office).

4. Why does the form contain an approval for the sales director?- Because the sales director needs to be continually updated on sales for discussions with the CEO.

A non-value added signature authorityis helping to cause a process breakdown

5 Why Analysis (Examples)

Problem Statement: You are on your way home from work and your

car stops in the middle of the road.


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teach a person to "bluff" a handthan it is to try to directly solve the stated problems

1. Why did your car stop?- Because it ran out of gas.

2. Why did it run out of gas?

- Because I didn't buy any gas on my way to work.

3. Why didn't you buy any gas this morning?- Because I didn't have any money.

4. Why didn't you have any money?- Because I lost it all last night in a poker game.

5. Why did you lose your money in last night's poker game?- Because I'm not very good at "bluffing" when I don't have a good

hand

Road Map : Improve


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Generate &Select Solutions

Implement Solutions

Deliverables :

Statistically ProposeSolution which willmeet or exceed thequality improvement

goals.

Deliverables :

Proposed Solutionmeets or exceeds theQuality improvementGoal.

DMAIC

To develop a proposed Solution

Improve Phase Objectives


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p p p Identify an Improvement Strategy

Experiment to determine a Solution

Quantify financial opportunities

Confirm that Proposed Solution will meet or Exceed PerformanceObjective

A Pilot include one or more small scale of Tests of the Solution in areal world business environment.

To Statistically confirm that an Improvement Exists (HypothesisTest).

To Identify resources required for a successful Full-ScaleImplementation of the Solution.

To Plan & Execute full Scale Implementation including training,support, technology rollout, Process and documentation changes.

DMAIC

Focus And Select VitalF C

Generate And Select Solutions


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Develop

SolutionProposal

Refine, Evaluate & Select

BRAINSTORM

ANALYZE

IMPROVE

Few Causes

Generate Ideas

(Raw Material forSolutions)

Synthesize Ideas

(Build potentialSolutions)

Pilot

(Select Best Solutions)

F I L T E R

DMAIC

Counter Measures


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Sl.# Root Cause(Xs)

Counter Measure(Solution)

Practical /Logical

Feasible Effect(Impact )

1

2

3

4

5

DMAIC

Why PILOT


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Improved Solution

Improved Implementation

Lower Risk of failure

Confirm Expected Result & Relationship

Ability to better predict financial saving from proposed

Solution Increased Opportunity for Feedback

Increased Buy-In.

Get early version of a Solution out quickly to a particular

segment.

DMAIC

FMEA is a simple tool to prioritize the failure modes & actionsT l

Failure Mode & Effect Analysis(FMEA)


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By understanding why and how we fail, we can plan for success

It works on the belief that proactiveness saves time

Typically, FMEA is applied on the output of root-cause analysis,& is a better tool for focus / prioritization as compared to multi-

voting

We shall focus on Process FMEA (Design FMEA is used indesigning products)

FMEA

Tool

DMAIC

EffectSeverity

FMEA Concepts & Output


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Risk Priority Number (RPN) = S * O * D Severity, Occurrence & Detectability are measured on a scale of 1-10

FailureMode Cause

Control

Process / ProductCharacteristics

Severity

Occurrence

Detectability

Risk

PriorityNumber

ActionPlan

DMAIC

Process / Product characteristics - Purpose of the product or

P

FMEA Concepts & Output


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Process

Failure Mode - How can the product /process fail to function?

Effects - Which effects are mostsevere to customer?

Causes - Which causes are most

likely to occur?

Controls - Ability for current controls

to detect causes?

RPN - Which high risk cause wework on first?

Action Plan - Recommended actions &

responsibilities

DMAIC


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Occurrence is the probability that a specific cause will result in theparticular failure mode

Scales of SOD - Occurrence


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particular failure mode

Rating Scale:

DMAIC

Scales of SOD - Delectability

Detectability is the probability that a particular cause will

be detected


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Rating Scale:

DMAIC

FMEA Table


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FMEA Table

DMAIC

Usually, FMEA is used to prioritize root-causes for discrete defect

FMEA Summary


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y, pdefinitions on Y where Regression / ANOVA are not possible

Typically, final part of the FMEA table in terms of recommended

actions & improved SOD rating gets filled during IMPROVE&CONTROL phases.

Recommended action is nothing but a counter-measure toeliminate/ transition a root-cause that will be studied in step 9 ofDMAIC.

New SOD ratings shall be given only at the time of project closurewhen counter-measures would have been implemented & effectseen on failure mode

Project teams must review the RPNs periodically

DMAIC

MEASURE CONTROL

IMPROVEANALYZEMEASUREDEFINE

Road Map : Control


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Monitor ImprovedPerformance

Standardization &Documentation

Deliverables : Monitor Process Stability,Process capability & Processcontrol after implementingsolution on a ongoing basis.

Deliverables : Implement Processcontrol system &Project Closure

DMAIC

Make sure Process stays in control after the implementation of theSolution.

Control Main Objective


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Quickly Detect the out of control state and determine the associatedspecial cause so that action can be taken to correct the problem.

Keep Xs with in tolerance by using appropriate controls (RiskManagement, Mistake Proofing)

Apply Control Charts to Xs to monitor & control variation.

Understand Implication on existing quality plans due tomodifications of current control systems.

Establish transition plan for maintaining control of improved

process.

DMAIC

A process Control System Strategy for maintaining the improved process performance over time.

Identify specific tools required for sustaining the processimprovement or gains

Process Control System


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improvement or gains

A Control System may incorporate Risk Management

Mistake proofing device Statistical Process Control (SPC)

Data Collection Plans

Ongoing Measurement

Audit Plan

Response Plans

Product drawing

Standardization

Process documentation

Process Ownership Process Certification

DMAIC

Technical Definition of dashboards Dash Board

What is a DashBoards?


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A dash boards is numeric indicator of all the critical parametersneeded to drive Process Engine.Two measures are on the dashboards

Effectiveness Measures: Input/OutputEfficiency Measures : Process

DMAIC

What measurements do you use ?How do you use these measures ?

Technical Definition of dashboards Dash Board


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How do you use these measures ?What measures get the most attention in your areas ?

Do these measure assure a customer focus?Do these measure have an input/output focus ?

Switching to a sigma-based system :

Provide uniform measure of: Process performance Variation

Quality

DMAIC

Output Measures

Defining YDefining YOutput Measures ::Output Measures ::Wing-to-Wing Measure

Dash Board


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This Measure is from Customer Point of View

Includes whole process not just touch time

End to End Measure - Input to Output

DMAIC

A Visual Display Of current performance of Key Measures like Input ,Process& Output indicates status as In-Control or Out-Control

Monitoring - Dashboard


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InputInput

InputInput

OutputOutput

ProcessProcess InputInput

DMAIC


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Customer Focus

icle

Rob

Transformation due to Six Sigma


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Data

Cult

ure

Chan

ge

Vehic bu

stP

r

ocesses

Teaming

Financial Gains


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.

THANK YOU

FOR YOUR TIME

6 Common termZ ValueDefinition of Z Value

It is standard normalized value for various

normal distributions to make easy*

**

Concept of Z Value


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normal distributions to make easy

statistical analysis.

* Normal distribution : As bell shaped distribution, left side is same as right side by axis mean()** Standard normal distribution : mean is 0, standard deviation is 1 normal distribution

T=

1

USLLSL

X -T

Z =

In a Process, if six standard deviations are

between spec.(USL, LSL), then we call 6level .

It is good process that has 3.4ppm, that is 3or 4 defects per million.

Z is ratio value that difference between

X(USL or LSL) and target is divided

standard deviation (s).

That is numeric part of Level.When Z is 6, it is 6 level.

***

*** USL : Upper Spec Limit / LSL : Lower Spec Limit

Visualizing the Answer Sigma & Cp

2025 30


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Since this is a one sided specification (upper limit only) we are onlyconcerned with the right side of this diagram. There are 3 units of

standard deviation between the process average and the closestspecification limit. Therefore, this is a 3 sigma process.

Design width(30 seconds)

Process Average(15 seconds)

Calculating the Answer Sigma

Z Value or Sigma Value


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Z = 30 - 15 = 35

Z = USL - X


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Always listen to the market


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Use check-lists for testing


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earsneckfeet

Which oneIs mine?

Select significant attributes for your forecaster


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Support! different situations by specific tools


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Look for efficient solutions


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What suits one customer might not suit the next


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Forecasting and optimization are complex


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Come on! It cant go

wrong every time...

Not every presentation is successful


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Simulation expertice helps


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Get Better or Get Beaten....


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Deadline is deadline !

Maths is not everything


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Kaam Ki Six Sigma

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