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Six Sigma asserts that continuous efforts to achieve stable and predictable

results by reducing process variation are of vital importance. Manufacturing and


business processes have characteristics that can be measured, analysed,
improved and controlled.
1

691,462(dpmo)

69%d 31%s 0.33 (CP)

308,538

69

0.67

66,807

6.7

93.3

6,210

0.62

233

0.023 99.977

3.4

0.00034 99.99966 2.00

31

1.00

99.38 1.33
1.67

Below flowchart has 9 different symbols Start/Stop, Process, Decision Making,


Collect data, Document, Delay, Store, Process flow direction and
Transportation/movement direction of material
Start

Baking Process

Bad

Collect
data, why?

Good or
Bad

Delay

Document
Store

7 Basic quality tools Cause and Effect diagram/Fishbone/Ishikawa,

Control Chart, Check Sheet, Histogram, Pareto


Stratification/Flow chart/run chart. FFCCHPS
diagram,

Scatter

Chart

and

Scatter diagram denotes strength and direction of association between two


variables.

Overproduction, overprocessing, Waiting, Inventory,


conveyance/Transportation, Motion/movement, Correction/Defects/Rework
7 elements of Waste
(WORMPIT)

5S

Sort, Straighten/Systematic
Standardize, Sustain.

Arrangement/SiO/Streamline,

Shine,

Data Classification Continuous data, Discrete data, Attribute data.


Data Measurement Nominal, Ordinal, Interval, Ratio.

Descriptive (also known as 'enumerative') statistics are used to provide information about the
specific data that is being analyzed. For example the mean of the three values 4, 8 and 9 is 7.
Analytical (also known as 'inferential') statistics are used to draw conclusions ('inferences') about
a population based on sample data.

Hypothesis Testing
Null hypothesis means that the mean is equal to zero and for mean equal to one it is Alternative
hypotheses. This test will determine the probability of getting the observed results if NH was true.
This probability is known as p-value. In NH, it will be rejected if the p-value is below a certain
threshold probability level known as the alpha value. It is possible that the HT will give
misleading results and incorrect conclusions can be drawn from it. Type 1 and 2 errors classify
this. Type 1 is the probability of wrongly rejecting the NH i.e. it was correct, even though p-value
is lesser than alpha. Type 2 is the probability of failing to reject the NH when it was false and AH is

correct i.e. it was false, even though p-value is larger than alpha. This are also called alpha and
beta-risks.
Alpha value is the probability of making Type-1 error.

Defects = 14,

Defective = 7

Total units produced = 10

Defect Opportunities (no. of processes) = 4, TOP = 40


Defects per unit (DPU) =14/10 = 1.4
Defects per opportunity = 14/40 =
0.35 is the probability of defects occurring in every unit
DPMO = 0.35 * 1e6 = 350,000 is the probability that a given process will produce
X defect opportunities per million units produced. Here 350,000 defect
opportunities per million units produced.
PPM = (7/10) * 1e6 = 700,000 is the probability that a given process will produce
X defective pieces per million units produced. Here, it will be 700,000 defective
units every 1 million units produced.
First Pass Yield or Throughput yield (FPY, TPY) = 6/10 = 0.6 or 60%. Here,
consider 6 parts pass the dimensional check process (one process out of 4)
without rework or scrap.
First Time Yield (FTY) is when rework can be done to avoid scrap through defect
= (FPY + Rework) / U
Rolled Throughput Yield (RTY) = FPYn or TPYn. Consider the above 4 processes;
P1 had FPY of 8/10 (because there were only 2 defects), P2 had 6/10, P3 had
5/10 and P4 had 7/10.
i.e. 0.8*0.6*0.5*0.7 = 0.168. Rolled Throughput Yield for all the processes is
16.8%.

A business case is a document that uses the problem and the goal statements
and converts it into a statement of business value. The management might
understand that there is a problem and that you have a goal after reading your
problem and goal statements. However, is your project solving one of the most
urgent problems confronting the organization is what the business case is
supposed to convey.
What makes a Business Case compelling?
Strategic Linkage: Think at the organizational level. The top management has
to make a choice between several strategies which may be good for the firm.
While all of the may be good, the management has to choose which will be best
in the long run and follow it. There is nothing which makes a better business case
than the ability to make the organization believe that the Six Sigma project will
make it reach closer to its strategic objectives
Benefits: The management is not very concerned about the problems unless
they are significant. In huge organizations small problems are present in almost
every department. However they need to be solved by the lower level
management. The Six Sigma project is managed by the top management who
are concerned with the benefits that your project will provide to the organization.
The project must include benefits like cost savings, increased service levels,
increased efficiency and the like.
Link to Problem and Goal Statement: A business case must tell the loss that
is happening because of the problems identified in the problem statement. It
must also talk about the benefits that will be gained by achieving the goals
mentioned in the goal statement. The difference between the two numbers is the
business value of the Six Sigma project that is being proposed to be undertaken.
Brief: A verbose business case can mar a well identified problem and well
selected goals. Although the management must be capable to sift through the
language and come to the point, they seldom are. It is the initiative of the
process owner that he/she must come up with a case that is easy to understand.
This will make it most compelling to the management.
Example: The loss in productivity as a result of employees coming late is $5 per
minute per employee. Hence for a 1000 employees (40% of the workforce), the
management is losing $5000 per minute for 15 minutes i.e. $75,000 every day. If
the organization thinks saving $75,000 going down the drain is their priority,
they will buy in the business case.

What is a Project Charter?


A Project charter is a 5 to 6 page document which collects all the information
that has been developed in the previous steps (collect and review info like voc
voe vos, define project scope, define project statement, business case) and puts
it in a central location. The Project charter serves as the constitution which
governs the working of the project and disputes if any that may arise during the
execution of the project.
Importance of the Project Charter
The project charter is the final deliverable document that is required at the end
of the first step of the Define Phase. This document serves as a proof of the
activities that have been performed up to this stage and the agreement that has
been reached amongst the members of the team, the stakeholders as well as the
management.
This charter is constantly used to see whether the project is doing what it was
expected to do, within the time frame it was expected to do, so on and so forth.
At the end of the project the actual benefits are compared with the forecasted
benefits to declare the project a success or a failure. The Project Charter plays a
vital role in the control of the project.
Elements of the Project Charter
A Project charter usually has 5 - 6 elements. They can be more or less depending
upon the nature of the project and its requirements. However the usual elements
of most Six Sigma project charters are as follows:
Purpose: To be assembled from Problem and Goal Statements
Value: To be assembled from the Business Case
Scope: To be assembled from the high level business flow
Team: To be decided as per the roles before beginning the project.
Schedule: To be prepared as per the time frame provided at the beginning of the
project
CTQ Measures: To be assembled from the information collected during the
problem and goal definition