2.0 Six Sigma Define

SIX SIGMA
Six Sigma GB Material Oct 2013
49
APPROACH TO DEFINE
Develop Business
Case and
Team Charter
Map the
current
process
Listen to the
Voice of the
Customer
50
Define Phase Objectives

The Define phase is used to
Clearly define and document the problem to be solved, the effects,
and the target situation, without anticipating solutions,
Determine the requirements of the identified customers, in order to
determine what requirements possibly beyond the first objective
must be fulfilled at the end of the project,
Convert customer requirements into CTQs, incl. measurement
categories and defect definitions,
Establish the financial benefits of the project,
Clearly limit the project goal,
Estimate the time frame and expenditure for the project participants,
Involve the necessary team members and project participants, and
Hold to the results in a binding contract.
The Define phase ends with the fully signed project charter.
51
IDENTIFYING THE KEY PLAYERS

There are four major roles

that need to be filled for a
successful project.
Black Belt/Green Belts

Team Members
Master Black Belt
Champion
52
ORGANIZATIONAL CONTEXT FOR PROJECTS

Champions
Master
Black Belt
Coordinators
Black Belt
Green Belt
Team Members
53
PROCESS OWNER
Process
Owner
Overall
Process
Dept A
Dept B
Dept C
Dept D
Worries about overall process health

Has responsibility and authority to manage and improve a process
The Champion
54
How this work gets done
Leadership Team
Master
Black Belt
Team Leader
Team Members
Select project
Draft charter
Discuss/revise charter
Review &
approve charter
55
Overview: Project Requirements

The legitimization and success of a Six Sigma project ...
Requirements for a Six Sigma Project:

The financial (tangible and intangible) benefits of the project
should be significant and validated by financial analyst OR it
increases customer satisfaction.
The underlying causes of the problem (the problem at the core
of the project) are unknown or currently only speculative.
The solution / correct approach for eliminating the problem is
not known up-front, i.e. it is not an implementation project.
The project has been clearly defined.
... demands concrete requirements and a clear definition of the

project itself.
56
Characteristics of a Good Six Sigma Project

The project is clearly connected to business priorities (business
case).
The problem is of major importance to the organization (impact).
The project has a reasonable scope (doable) in three to six
months.
The project defines clear quantitative measure of success
(measurable).
The project importance is clear to the organisation
(communication).
The project has the support and approval of the management
(commitment).
57
Project Portfolio
Y
y1
y11
y12
y13
y2
y21
y22
y23
y3
y31
y32
y33
y4
y41
y42
y43
y5
y51
y52
y53
Critical business issues

(VOB, VOC)
Resources
Project Identification,
Assessment, and
Selection
Project Assignment
Project Charter
Project
Execution
Project Execution,
Validation, and Control
Monthly 6sigma
Project Reviews
58
Project Selection Sources
High volume repetitive processes

Items with high cost savings implications
High leverage customer visible defects
Processes that affect the customer
59
Project Selection Approaches

Two approaches for selecting projects
Top down approach
Start with the Business Strategy
and objectives (3 to 5 years time
frame)
Bottom up approach
The projects are selected by
group of senior managers
Identify the key elements in the

strategy
Discuss and agree on a business

focus areas. (Such as
productivity, corrections etc.)
Identify the processes associated

with each strategic element
Functional HODs to generate list

of potential projects.
Prioritize the key processes for

your business
Use a suitable project selection

criterion for selecting projects
from above list.
Identify the areas of

dissatisfaction or opportunity in
the key processes.
Prioritize the areas for
improvement
Check the alignment of projects

with the business strategic
elements and objectives, in case
of gaps go to step 3
Prioritize the projects for
improvements
60
IMPORTANCE OF PROJECT CHARTER

A project charter is a written document and works as an

agreement between management and the team about what is
expected.
The charter:
Clarifies what is expected of the team.

Keeps the team focused.
Keeps the team aligned with organizational priorities.
Transfers the project from the champion(s) to the project team.
61
Project Charter
A charter is the document

which explains the purpose
and plan for a project
It acts as a blueprint for
reference during the course
of the project
It is a means of
communication with the
stakeholders in the project
It maintains focus of the
teams effort towards
achieving the purpose as
per plan
62
Project Charter
The business case describes the broad areas of concern
and the rationale for the project
The business case is usually developed by the champion
for the project and addresses the following questions:
Why is this project worth doing?
Why is it important to do now?
What are the consequences of NOT DOING the project?
How does it fit with the operational initiatives and
targets?
Example : In general customers expressed their dissatisfaction in the

recent customer survey, about delay in providing up-to-date
information of their export consignments. Management feels that they
may loose business in near future if performances not improved.
63
Project Charter
The purpose of the problem statement is to describe what
is wrong

For what Company goal/KRA are we not meeting targets?

When and where do the problems occur?
How big is the problem?
What is the impact of the problem?
The goal statement defines the improvement objective and

helps the team to maintain focus

Starts with a verb (Reduce, Eliminate, Control, Increase)

Tends to start broadly and eventually include measurable target
and asking completion date
Must not assign blame or prescribe solution
Includes the constraints on other CTC/CTB in the goal statement
64
Problems are of four typesonly complex

problems require systematic problem solving
approach like DMAIC.
Unknown
Brainstorming
DMAIC
Task force
Quick Fix Approach
Solution
Known
Known
Root Cause
Unknown
65
More varying and complex the combination of causes

more the difficulty in pin-pointing the causes.
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Single cause
(Why Why Analysis)
Multiple causes
(Fish Bone Analysis)
Cause
Variable complex combination

Difficulty in pinpointing cause
(PM Analysis, FMEA)
66
Common Problems and Recommendations
Many projects encounter one or more of the following

problems:
Not relevant to customers or to business needs

Project scope too large; wont have authority to commit
time/resources or to make changes in the process; cant easily
identify starting and ending points
Relevant data hard to collect or too much data
Cant define what a defect is
Process doesnt cycle often enough
Task written as a problem
Recent changes in the process
67
Refining Project Definition
Most projects evolve. Few are cast in stone from the beginning.
In each step, youll learn more about what is really going on.
Be open to revisiting the

scope, definition, and
purpose of the project.
Check with your Process
Owner before making
any substantive changes.
68
Process Definition
A set of linked or related activities that take

inputs and transform them into outputs with the
purpose of producing a product, information or
service for external or internal customers.
Transformation
69
Work as a Process
S
U
P
P
L
I
E
R
S
Inputs
Process
Outputs
C
U
S
T
O
M
E
R
S
Applies to all kinds of work, whether repetitive in nature or one-of-a-kind.

Having a high-level view of a process helps to:
> define project boundaries (starting and ending points);
> describe where to collect data.
70
SIPOC: INPUTS
Ideas
Process
You may end up with 1550 input variables at this point.

We will continue to focus on using funneling tools throughout
the DMAIC process.
71
SIPOC: HIGH-LEVEL PROCESS VIEW
Process
A high-level view is often captured as a top-level flowchart
Step 1:
Turning
Step 2:
Milling
Step 3:
Grinding
Step 4:
Plating
72
SIPOC: OUTPUTS
Process
Information
73
QUESTIONS TO HELP WITH SIPOC

Purpose
Why does this process exist?
What is the purpose of this
process?
What is the outcome?
Outputs
What product does this process
make?
What are the outputs of this
process?
At what point does this process
end?
Customers
Who uses the products from this
process?
Who are the customers of this
process?
Inputs/Suppliers
Where does the information
or material you work on
come from? Who are your
suppliers?
What do they supply?
Where do they affect the
process flow?
What effect do they have on
the process and on the
outcome?
Process steps
What happens to each
input?
What conversion activities
take place?
74
SIPOC EXAMPLE Medical Bill Processing

Suppliers
Inputs
Account Holder
Documents
Company
Office Supplier
Outputs
Payment Cheque
Review Checklist
Claim Checklist
IT Dept
Process
Customers
Account Holder
Management
Payment
Processing
IT system
Scanner
Process Steps
Receive
Documents
Scan
Documents
Assign
case file
Review File
Prepare
Payments
75
HOW TO CREATE A SIPOC MAP
Name the process.

Clarify the start and the stop (boundaries) of the
process.
Identify, name, and order the major process steps.
List key outputs and customers.
List key inputs and suppliers.
76
Voice of Customer
Do you really want to perform the project ...
VOC data helps in...

deciding which products and services to offer
pinpointing the critical characteristics and specifications of
these products and services
deciding where to focus on making improvements
provides base measurement values for customer benefits and
satisfaction, which you can use to compare the improvement
results
identifying the driving factors behind customer satisfaction
... without asking your customer what is important to him?

77
The VOC Process
The VOC process begins with the SIPOC ...

1
SIPOC Map
C
U
S
T
O
M
E
R
S
Outputs
6
Specifications
VOC Plan
Who
3
Affinities
What & Why

Need1
Sources
Reactive
Proactive
Tree Diagram
Summary
VOCKey IssueCTQ
CTQ Xi
LSL
Kano Model
Delighters
USL
More Is Better
Must Be
... and translates customer requirements into measurable CTQs.

78
Voice of the customer
The term Voice of the

Customer (VOC) is used to
describe customers needs
and their perceptions of
your product or service.
You can also capture
Voice of the Business
(VOB)
79
Why VOC is critical
VOC data helps an organization to:
decide what products and services are critical.
identify critical features and specifications for those products

and services.
decide where to focus improvement efforts.
get a baseline measure of customer satisfaction to measure

improvement against.
identify key drivers of Business results.
80
BASIC VOC SYSTEMS

1. Reactive systems
Information comes to
you whether you take
action or not
2. Proactive systems
You need to put effort into
gathering the information
81
Typical Reactive Systems
Customer complaints (phone or written)

Problem or service hot lines
Technical support calls
Customer service calls
Claims, credits, contested payments
Sales reporting
Product return information
Warranty claims
Web page activity
Reactive systems generally gather data on:

current and former customer issues or problems
current and former customers unmet needs
current and former customers interest in particular products
or services
82
KANOs Model Of Quality

HIGH Customer
Satisfaction
Not Done or
Done poorly
Done Very
Well
LOW Customer
Satisfaction
83
Satisfied
Customer
Kano Model
Thats Cool
Web page editing on IE Tool Bar
Free Internet Access @ Starbucks
Retractable light under hood
Send digital pix with your cell phone
Web page
editing on IE Tool
Bar
More Is Better
Speed of Internet Connection
Flavor of coffee
Gas Mileage
Battery life on digital camera
Indifferent Needs
Poor
Functionality
I dont care
MapPoint on standard tool bar
Excellent
Functionality
Color of coffee cup

Size of tires
If its not there, Ill never

be satisfied
Voltage of battery
Ability to Print
Coffee is hot
Car has brakes
Ability to transfer digital
pictures to computer
Dissatisfied
Customer
84
Types of Customer Requirements (CTQs)
Customer requirements are vague and sometimes

intangible. The VOC process translates these into
Critical-To-Quality (critical quality characteristics)
Product
function
Service
quality
Price
Reliability
Prestige
Robustness
Repairability
Capability
Usability
Comfort
Trust
Speed
Low base price
Total cost
Price/performance
After-sales service
Discounts
Taxes, legal regulations
... measurable, critical-to-quality characteristics (CTQ).

85
CTQ Tree
Translating customer requirements into critical

quality characteristics involves two steps ...
VOC
CTQ Tree
CTQ
I want
CTQ
CTQ
Need
CTQ
CTQ
CTQ
CTQ
CTQ = Critical to Quality
CTQ
... and returns a number of CTQs.

86
CTQ Tree - Example

Customer Satisfaction
(Business Objective / Needs)
Product/source
technical performance
No Additional
Down Time
On-Time, Accurate &

Complete Deliverables
Communication
(Time, Accuracy,
Completeness)
System
Downtime
Reliable Courier
Marketplace
competitiveness
On-time
Delivery
Customer
responsiveness and
communication
Quality Repair
1st Level
Customer CTQ
Accurate & Complete
Deliverables
2nd (lower) Level

Customer CTQ
87
Eamples of CTQs
Process Effectiveness
The process delivers the required
quality
Error rates
Precision
Planned/target
comparison
Service level(s)
Delivery reliability
Response time
Process Efficiency
The process delivers the results at
minimum cost
Costs per part

Lead time (per part)
Process yield
Output per unit
Total lead time
Flexibility
The process can meet changing requirements
Setup times
Process changes
Dealing with special requirements
Unfulfilled customer requirements
88
Common CTQs
Service

Reliability
Responsiveness
Competence
Access
Courtesy
Accuracy
Communication
Credibility
Security
Understanding
Tangibles
Timeliness
Product

Performance
Features
Conformance
Timeliness
Reliability
Serviceability
Durability
Aesthetics
Reputation
Completeness
89
CTQ Specification Table

Need, customers
wish
CTQ
Parts available
> 3 days
% part availability
Any part not available
Release status
Suitable staff
Qualification, fulfillment level
# of personnel
Available capacity
Equipment available
Capacity load per equip.
Material expenses
Material costs
Personnel expenses
Time requirement for rework
Transportation expenses
Transportation costs
Fixed capital
WIP
Defect Definition
Replenishment lead time
Rework method
available
Reworked on
time
Cost-effective
rework
Measurement
90

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SIX SIGMA

Six Sigma GB Material Oct 2013

Six Sigma GB Material Oct 2013

Define Phase Objectives

IDENTIFYING THE KEY PLAYERS

There are four major roles

Black Belt/Green Belts

Six Sigma GB Material Oct 2013

ORGANIZATIONAL CONTEXT FOR PROJECTS

Six Sigma GB Material Oct 2013

Worries about overall process health

Six Sigma GB Material Oct 2013

How this work gets done

Overview: Project Requirements

Requirements for a Six Sigma Project:

... demands concrete requirements and a clear definition of the

Characteristics of a Good Six Sigma Project

Six Sigma GB Material Oct 2013

Critical business issues

Project Selection Sources

High volume repetitive processes

Six Sigma GB Material Oct 2013

Project Selection Approaches

Identify the key elements in the

Discuss and agree on a business

Identify the processes associated

Functional HODs to generate list

Prioritize the key processes for

Use a suitable project selection

Identify the areas of

Check the alignment of projects

Six Sigma GB Material Oct 2013

IMPORTANCE OF PROJECT CHARTER

A project charter is a written document and works as an

Clarifies what is expected of the team.

Six Sigma GB Material Oct 2013

Six Sigma GB Material Oct 2013

A charter is the document

Example : In general customers expressed their dissatisfaction in the

For what Company goal/KRA are we not meeting targets?

The goal statement defines the improvement objective and

Starts with a verb (Reduce, Eliminate, Control, Increase)

Six Sigma GB Material Oct 2013

Problems are of four typesonly complex

Quick Fix Approach

Six Sigma GB Material Oct 2013

More varying and complex the combination of causes

Six Sigma GB Material Oct 2013

Variable complex combination

Common Problems and Recommendations

Many projects encounter one or more of the following

Not relevant to customers or to business needs

Six Sigma GB Material Oct 2013

Refining Project Definition

Be open to revisiting the

Six Sigma GB Material Oct 2013

A set of linked or related activities that take

Six Sigma GB Material Oct 2013

Applies to all kinds of work, whether repetitive in nature or one-of-a-kind.

Six Sigma GB Material Oct 2013

You may end up with 1550 input variables at this point.

Six Sigma GB Material Oct 2013

SIPOC: HIGH-LEVEL PROCESS VIEW

A high-level view is often captured as a top-level flowchart