Kaam Ki Six Sigma

WELCOME
To
THE
Six Sigma Yellow Belt
Program
Transforming Life…
TRAINING GROUND RULES
) 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
)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!
Course Content
OBJECTIVES
MNYL’s Perspective on Quality

“ Why Six Sigma “
Apply the Six Sigma methodology to improve processes
Clarity on Six Sigma –DMAIC Methodology
Your Role going Forwards
Quality
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 market” Deming
• “Quality is conformance to requirements” Crossby
• “Quality is as perceived by Customer “ Anonymous
Quality Policy - MNYL
The MNYL Quality Journey QUALITY
And
BUSINESS
EXCELLENCE
Consolidation
• Six Sigma Launch

• Service Delivery Forum
Small Improvements &
Process Orientation • Improvement Projects
(Servottam,PPP,PLS)
• ISO Certification • Cost Mgmt Program
Basic Awareness & • My Kontribution (Kaizen) • Service Scorecard
Culture • Improvement Projects • Zonal Quality
(Polivartan) • ISO Recertification
• Basic Processes & • Project Management(C4G, • Six Sigma Excellence
Procedure Munich Re etc) Award (Sakaal)
• ASAT/ CSAT • Mystery Shopping
2002 2003 - 2004 2005 - 2006 2007 - 2008
Quality & Business Excellence Model
CUSTOMER PERSPECTIVE
Listening Posts (CSAT / ASAT)
CONTINUOUS IMPROVEMENT
Six Sigma / Project Management
INTEGRATION / PERFORMANCE / RESULTS

Measurements / Balance Scorecard
PROCESS EXCELLENCE
BPMS – ISO Audits/ Process and dashboard orientation
CULTURE BUILDING
People Engagement & Empowerment – MyKontribution, Training, ISO, Six Sigma
Recognition & Rewards, Communication
The MNYL Quality Structure

Gary Bennett - CEO
Sunil Sharma – COO
Rajesh Sud – Distribution
Sanjeev Mago – Ops & S
Rajit Mehta – HR
Sunil Kakar – Finance
Business Quality Amit Kumar – IT
Council Vineet Sharma – Business
Excellence & Quality
Quality Leader Functional Quality

Councils (HO/Zonal)
Improvement Team
Champion Black Belt/Green Belt (Team Leader)

Yellow Belts
Master Black Belt
Members
WIFM
9 Higher level of learning in Basic Quality Tools.
9 Yellow belt projects create applicable benefits for MNYL.
9 Certification methodology ensures focussed Learning.
9 Nursery for creating Future Quality Project leaders.
9 Get taste of Quality and learn usable tools in a simple

way.
9 Direct Nomination to the Green Belt program on

certification
Certification Process
The Yellow belt certification program is a simple 5- Step process:
STEP 1 : Send nominations to the Quality team for participation in the YB

program.
STEP 2 : Participate in the Two day Yellow Belt program post invitation
from Q-Team.
STEP 3 : Successfully pass the Yellow Belt Post Training

assessment.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
Let`s know little
bit more about
Six Sigma
Evolution of SS What is 6σ
Why we chose Six Sigma
ÉMeasurable & data based

ÉCustomer Focused
ÉRemoves defects from products & services
ÉEncompasses Manufacturing, Software and Transactional
processes
ÉSustainable competitive edge
ÉGlobal acceptance
ÉProject based, with milestones
ÉIntegrates well with other Quality initiatives like ISO, Phil Cross by
etc.
What is 6σ
What is different about
Six Sigma
Let us Start with …. What is 6σ
É The vast majority of the tools were developed more than 50 years
ago
É Many Six Sigma projects (especially in transactional areas) will not

require sophisticated / esoteric analytical tools.
É Improvement comes on a project by project basis.
É Management care and feeding is required.
What`s Not New
What is New Strategically ? What is 6σ
¾ Alignment of Six Sigma Initiative with Business Objectives
¾ Accountability
9 Metrics
• Activity based
• Outcome based.
¾ Executive Selection Of :
9 Champions to manage Projects
9 Projects formation
9 Belts to execute projects
• Green
• Black
• Master Black
What is New Tactically? What is 6σ
¾ Dedicated Resources.
¾ Improvements Instutionalized and “Cross-pollinated”
¾ Structure and Organization of Tools

9 Define
9 Measure
9 Analyze
9 Improve
9 Control
¾ Personal Computer Technology Facilitates :

9 Statistics
9 Extracting information from data
Advantages of This Type of Approach
¾ Have a common language

¾ Sensitize the organization in the use of statistical tools
¾ Develop the internal supplier/customer relationship
¾ Benchmarking
¾ Work on the most significant objectives
¾ Promote working in teams
Common Language Z Value
A Universal Measurement Scale ...

Sigma
7
6
5
4
ε DPMO
3
On one condition : 3.4
233
Calculate the defects and
estimate the opportunities 6210
in the same way...
66810
Need for Z Value Z Value
Process Performance
Purchase Order Generation ) 98% Accuracy
Accounts Receivables ) 33 days average aging
Customer Service ) 82% rated 4 or 5 on responsiveness
Supplier Delivery ) 95 % on-time delivery
Which process is performing best ?
Character of 6σ Why 6σ
A Traditional View The Six Sigma View

Product Quality
• Input COQ Service
Variables On-Time Delivery
Relationships
Credit Terms
Customer
Training
Customer Satisfaction
Market Share
Market Share
Sales Growth
Sales Growth • Output
Profitability
• Output Profitability Variables
Variables
Manage the inputs; respond
Manage the outputs. to the outputs.
Six Sigma Co-travelers
Motorola Toshiba
Allied Signals Canon
ABB Hitachi
GE J P Morgan Chase
Texas Instruments Seagate
Citibank Tata Steel
Sony ISPAT
Honda WIPRO
Polaroid AT & T
Sun Microsystems Whirlpool
6 SIGMA DEFINITION What is 6σ
•LAYMAN’S DEFINITION
6 SIGMA MEANS ONE PIN HEAD UNCLEANED
AREA OF 1500 SQ FOOT CARPET AREA
6
STATISTICAL DEFINITION
•3.4 DEFECTS / MILLION ( 1.5 SIGMA SHIFT)
OR 2 DEFECTS / BILLION ( 0 SHIFT)
• IT MEANS OPERATING IN 1 / 2 THE

ALLOWABLE SPECIFICATION LIMIT
What are the Statistics What is 6σ
Two Meanings of “ Sigma ”

σ - Greek alphabet
The term “ Sigma ” is used to designate the distribution or spread
about 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 free
work. A defect is anything that results in customer dissatisfaction.
As defects The Sigma Capability

Go down …… D σ Goes up ..……
Focus on defects
Design for Six Sigma (DFSS)
World Class Sweetest

Fruit
Six
Sigma 3.4 Bulk
fruit
Five Sigma 233 Process Characterization &
Optimization (DMAIC)
Average Four
Processes Sigma 6210
Low
Three Sigma 66807 Hanging
Seven Basic tools
Two Sigma 308537

Ground
One 697672 Fruit
Sigma
Logic & Intuition
What are the Statistics What is 6σ
σ PPM %age • 1 misspelled word in all of the books

contained in a small library
6 3.4 99.99966 • $340 indebtedness per $100 millions
assets
5 233 99.97670 • 1.8 minutes per year
4 6,210 99.37900
• 1.5 misspelled words per page in a
book
3 66,807 93.33190
• $6.7 millions indebtedness per $100
millions assets
2 308,537 69.12300
• 24 days per year
Paradigm Shift Why 6σ
Are you satisfied

with 99 % OK
in your life ???
We demand High Quality in our daily lives. . .
99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)

20,000 lost letters per hour Seven articles of mail lost per hour
Unsafe drinking water for One unsafe minute every seven

almost 15 minutes each day months
5,000 incorrect surgical 1.7 incorrect operations per week

operations per week
. . .so why not in our businesses?
Two short or long landings at One short or long landing every five
most major airports each day years at each airport
200,000 wrong drug 68 wrong prescriptions per year

prescriptions each year
No electricity for seven hours One hour without electricity every

each month 34 years
Six Sigma: An Ambitious Objective?
Accurate to 99.99966 % ( less than 3.4 defects for each million

opportunities ) 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
Comparing 6σ with 3σ
The 3σ Company The 6σ Company
• Spends 15~25%of sales dollars on cost • Spends 5%of sales dollars on cost of failure
of failure
• Produces 66,807 ppm opportunities • Produces 3.4 ppm opportunities

• Relies on capable processes that don’t
• Relies on inspection to find defects produce defects
• Believes high quality is expensive • Knows that the high quality producer is
the low cost producer
• Does not have a disciplined approach
to gather and analyze data • Use Measure, Analyze, Improve, Control
and Measure, Analyze, Design
• Benchmarks themselves against their • Benchmarks themselves against the best
competition in the world
• Believes 99% is good enough • Believes 99% is unacceptable
• Define CTQ’s internally • Define CTQ’s externally
6σ as the Biz Strategy What is 6σ
1. It is a statistical measurement.
It tells us how good our products, services, and processes really are.
6σ helps us to establish our course and gauge our pace in the race for total
customer satisfaction.
2. It is a improvement tool.
It’s 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 σ 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.
What is New Strategically ? What is 6σ
¾ Alignment of Six Sigma Initiative with Business Objectives
¾ Accountability
9 Metrics
• Activity based
• Outcome based.
¾ Executive Selection Of :
9 Champions to manage Projects
9 Projects formation
9 Belts to execute projects
• Green
• Black
• Master Black
What is New Tactically? What is 6σ
¾ Dedicated Resources.
¾ Improvements Instutionalized and “Cross-pollinated”
¾ Structure and Organization of Tools

9 Define
9 Measure
9 Analyze
9 Improve
9 Control
¾ Personal Computer Technology Facilitates :

9 Statistics
9 Extracting information from data
AIM of 6σ the Activity What is 6σ
Shift to
Precise but not Accurate Target Shifting to Target &
Reducing Variation
T
T USL USL Object
Object
USL USL
of
of6σ
6σisis
μ
μ Accurate but not Precise Shift
Shiftto
to
Target
Target
T
USL USL Reducing
Reducing
variation
variation
μ
Reducing
Variation
Variation Need ?
Why isn`t the average alone, good enough ?
7.95 Target = 6 6.10

4.05 5.90
6.95 6.05
5.05 5.95
6.00 6.00
We need a way to quantify the “spread”

in the data
What is Variation What is 6σ
Why did this happen ?
What is Variation What is 6σ
Why did this happen ?
We may make a big mistake

only because we make
decision based on just
average.
So, we need additional information on variation. Data which expresses

variation we call “ Standard Deviation., Using Greek Alphabet, ó (Sigma)
represent the standard deviation.
Variation Exercise
(Count the Letter “ e” 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
Six Sigma Methodologies
Six Sigma
DMAIC DFSS
•Existing •New product /Service/Process

product/Service/Process
•Existing
•Process performance needs product/Service/Process
improvement. optimized using DMAIC and
still doesn't meet the level of
•Not meeting customer customer specification or six
specification sigma level
Six Sigma Team Roles &Responsibilities
Sponsor Champion
Define Big Ys of Project Define Project
Define 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 & techniques
Lead 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 meeting
Drive/Direct/Steer Projects to success Help with administrative tasks
Approve Project Definition & Project Closure Meet with Champion for review
Business focus & dedication to Quality Make Recommendation or Change
Project Implementation & Closure
How to do 6σ ?
CONTENTS
DMAIC Approach
The DMAIC Approach How to do 6σ
Practical Statistical Statistical Practical

Problem Problem solution solution
Disciplined Problem-Solving thru DMAIC
Why DMAIC Approach How to do 6σ
We tend to start from

We Judge by Averages an Internal Perspective
… Start looking … Start from Outside-In!
at Variance!!
Practical Measure
Problem Phase
Lo to t
Statistical Analyze
ve his
W Ju art
e
Problem Phase
to P
m
Statistical Improve
p
Solution Phase
Practical Control
Solution Phase
The DMAIC Approach How to do 6σ
DEFINE
•Define Customers & their
MEASURE
expectations
• Develop Data Collection
•Define Scope (Start & End
Plan for each Metrics
of Process) defined
CONTROL
•Define Present and • Collect Data from many
• Control Improvements
to keep the Process on Futuristic Process Map sources to determine type
the New Course •Define Deliverables & of defects
(Sustaining on the gains) Time Frames • Compare this with Voice of
Customer-Survey Result
• Develop how Progress will
be measured
ANALYZE
IMPROVE
• Determine Root Cause of
• Design Creative Solution Defects & Opportunities of
to fix & prevent problem Improvement
using technology (mistake
• Identify Sources of Variation
proofing) and discipline
• Identify Resource Required
• Study & Analyse Micro
& Cases what could cause
Level Activities which are
change to fail (Failure
creating Variation
Modes)
The Focus of Six Sigma
Y= f( X)
To get results ,should we focus our behavior on the Y or X?
Y Xi……….Xn
Dependent Independent
Output Input- Process
Effect Cause
Symptom Problem
Monitor Control
Historically the Y,……….with Six Sigma the Xs
D-M-A-I-C
DEFINE MEASURE ANALYZE

MEASURE IMPROVE CONTROL
Identify Project CTQ

Develop Project Charter
Define Process Map
Develop Measures
Establish Performance Standard
Establish Process Capability Generate & Select
Solutions
Implement Solutions
Define Performance Objectives

Identify Source of Variations Monitor Improved Performances
Standardization & Documentation
Road Map : Define

Identify Project CTQ Develop Project Charter Define Process MAP
DMAIC
DMAIC Transforming Life…
Case Study 6σ Common term
ABCL Ltd. has been in the business of providing life insurance

covers. For the last 25 years the company was enjoying a state of
monopoly. Due to revision in the government policy in the year 2002
the company saw series of private players entering into the market.
Data provided by the marketing department in the last management
committee meeting showed that the company's market share has
further dipped from 89% in Quarter 4 of 2002 to 82% at the end of
Qtr 1 in 2003. Concerned by this, management advised the quality
head to conduct a customer satisfaction survey and find out the
reasons for low share. The quality department conducted a
customer satisfaction survey of 50 customers who had bought the
policy from ABCL Ltd. in the period of January to April 2003. The
survey results showed customer dissatisfaction due to high policy
issuance TAT. The average TAT for policy issuance as perceived by
the customers was 30 days. Based on the results it was estimated
that the company is losing business to the tune of Rs.20 lakhs per
month.

Prepare a Project Charter using the case study
Participants to use Yellow Belt Worksheet

Problem Statement: Policy Issuance TAT (What) of 30 days (extent)

for the period of January – April 2003 (when) is leading to a loss of
2.4 crores per annum (impact).
Goal Statement: Reduce (verb) the TAT from 30 days (From) to 15 days
(goal) by August 30 2003 (deadline).

CTQ Examples 6σ Common term
Area : Call Center

Customer Quote 'I consistently wait too long to speak to a
representative.'
CTQ Name : Representative Responsiveness

CTQ Measure Time on hold (seconds)
CTQ Less than 60 seconds from call connection to the automated

Specification response system

Examples 6σ Common term
Area: Book Publisher
Customer Quote: 'I can't stand typos in books I purchase.’
CTQ Name : Typographic Quality
CTQ Measure : Number of typographical mistakes
CTQ Specification : Zero typographical mistakes

Define: Identify Project CTQs
Who is the Customer?
PROCESS:
Input Output
Supplier Process Customer
What is critical to the Quality of the Process?

………according to your Customer !

Example of SIPOC
Example of a Photocopying Process

SIPOC – High Level Process Mapping
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

Scoping
Longitudinal
Scoping
Lateral
Longitudinal
Starts after receipt of Proposal
Form from the customer
Ends at the despatch from HO
Lateral
Despatches for a Particular Zone
All despatches during shift A
Despatch through transporter X

Road Map : Measure

MEASUREIMPROVE CONTROL
Establish Performance Establish Process

Develop Measures
Standard Capability

Data Types What is 6σ
Discrete

Summarize Data
Average (Mean)
Express Centre of data Median
Mode
(Centre)
Range
Express Centre of data SPAN
Standard Deviation
(Variation)
Variance

Power of Measure What is 6σ
We don’t know what we don’t know.

If we can’t express what we know in the form
of numbers, we really don’t know much about
it.
If we don’t know much about it,

we can’t control it.
If we can’t control it, we are at the mercy of

chance.

Power of Measure What is 6σ
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, we‘ll get the right knowledge.

The Origin of Sampling What is 6σ
How to Collect Data ?
1. Shake it well No bias
2. Take one spoon Sampling
3. Make Decision Based on

Statistics
4. Action

Operational Definition – One illustration
How much liquid has been consumed?

Half Glass……...is the Quantity same?

Some Tools
CONTENTS
Histogram
Scatter Plot
Pie Chart
Pareto

Histogram
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 (its
frequency). Observations that fall exactly on an interval boundary are
included in the interval

Scatter Plot
Purpose : Scatterplots are also useful for plotting a variable over time.
This is especially useful for data that are not entered in chronological
order or were collected at irregular intervals.

Pie Chart
Purpose : Used to display the proportion of each data category

relative to the whole data set.

Pareto Chart
Purpose : A Pareto chart can be used to prioritize defects according

to type or source of defect. Basically, a Pareto chart is a type of bar
graph.
It can help weed out the vital few types or sources of defects from the
trivial many. It works on principle 80-20. It is a prioritization chart
which helps to decide the improvement goals

Pareto Chart
Pareto Chart
300 100
80
200
Percent
Count
60
40
100
20
0 0
rs
Defect D1 D2 D3 D4 D5 D6 D7 he
Ot
Count 80 60 50 45 20 17 15 9
Percent 27.0 20.3 16.9 15.2 6.8 5.7 5.1 3.0
Cum % 27.0 47.3 64.2 79.4 86.1 91.9 97.0 100.0
Approx 80% of Defects from Defect D1+D2+D3+D4

Exercise
All Team members to note down the following about themselves
1. Height and Weight

2. Distance you drive to Work
3. Mode of Vehicle used
4. Colour of Cab used
5. Time taken in the morning
6. Time taken in the evening
7. Number of Co Travellers
8. Number of Males and Females in Cab

Exercise
Data Collection template to be designed and own data to be filled

Team Leader to Collect Data from all the other members
Transfer to Flip chart
Leader of each group to move around from table to table

and collect consolidated data
1. Create Histogram with Class Intervals on Height

2. Create Scatter Plot on Height Vs. Weight
3. Create Pie Chart on Number of Males/ Females
4. Create Pareto on Mode of Vehicle

Process Performance
Purchase Order Generation ) 98% Accuracy
Accounts Receivables ) 33 days average aging
Customer Service
) 82% rated 4 or 5 on responsiveness
Supplier Delivery
) 95 % on-time delivery
Which process is performing best ?

None as there is no Common Benchmark

A Universal Measurement Scale ...

Sigma
7
6
5
4
ε DPMO
3
On one condition : 3.4
233
Calculate the defects and
estimate the opportunities 6210
in the same way...
66810

Process Performance Z Value
Purchase order booking ) 98% Accuracy ) 3.54
Accounts Receivables ) 33 days average aging )1.54
Customer Service ) 82% rated 4 or 5 on

)2.91
responsiveness
Supplier Delivery ) 95 % on-time delivery )3.29
Now we can say which is performing the best ?

There is a Common Benchmark without any Dimensions

Defect 6σ Common term
Defect :- Anything that results in customer dissatisfaction. Anything that

results in a Nonconformance
DPU/DPO/DPMO 6σ Common term
Defects Per Unit : Number of defects per unit

DPU Judging the process as “No good”, we could not know if it had a defect.
So 6σ 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

DPO 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,

DPMO
Changing DPO to million unit because 6σ uses PPM(Part Per Million)
Ex) DPMO = 0.2 DPO x 1,000,000 = 200,000
CTQ 6σ Common term
Definition of CTQ Typical Tools
• Customer states as critical to quality

of product, service or process. ) Customer surveys
) Focus Groups Interview
• Most CTQ’s are customer-driven,but ) Customer needs Mapping
risk, economics, and regulation may ) Quality function
drive others.
deployment(QFD)
) Quick Market Intelligence
Ex.) • Spec. of anything part ) Logic Tree
• Accuracy and reliability of billing ) Pareto Diagram
statements
• Time to repair
Main purpose of CTQ control is selecting
• Courteousness
the factors to the most important to customer.
It is not hard to do, but right to do!

CTQ Examples 6σ Common term
Area : Call Center

Customer Quote 'I consistently wait too long to speak to a representative.'
CTQ Name : Representative Responsiveness
CTQ Measure
Time on hold (seconds)
CTQ Less than 60 seconds from call connection to the automated

Specification response system
Defect
Calls with hold time equal and greater than 60 seconds
Call
Unit 1 call
Opportunity 263 calls

Sigma: 3.75
Defects 21,501 calls

Examples 6σ Common term
Area: Book Publisher
Customer Quote: 'I can't stand typos in books I purchase.’
CTQ Name : Typographic Quality

CTQ Measure : Number of typographical mistakes
CTQ Specification : Zero typographical mistakes
Defect : Any typographical mistakes
Unit : A word
Opportunity : Words per book
Defects : 2 typographical mistakes
Units : 100,000 (500 words/page x 200 pages/book)
Opportunities:1 per word
Sigma: 5.61

Road Map : Analyze

Define Performance Identify Source

Objective of Variations

Every process looks like this. . .
IN PROCESS
PROCESS OUT
. . . in theory

What do you see here . . . Any clarity?
Table Phone Shadow
Pencil stand
Paper
Pad
Wire
Ring Pens

See the Difference Now . . . .
Recall..One
picture is
better than
1000 words
Process Mapping is a graphic display of steps & activities that

constitute a process

Definition of a Process
A Process Is A Collection Of Sequential Activities

That Takes One Or More Kinds Of Input And
Creates An Output That Is Of Value To The
Customer

All Processes have variations
¾ All Repetitive Activities of a process have a certain amount of

fluctuations.
¾ Input , Process & Output measures will fluctuates.
¾ This fluctuation is called Variation.
¾ Variation is the Voice of the Process.
Measurement
Time

Process
Variation is Evil ...
Every Human Activity Has Variability...
Customer
Specification
X
X
XXX
X XXXX
XXXXXXX X
XXXXXXXXXX defects
X XXXXXXXXXXXXXX
Target
Understanding Variability & Customer Specification
Is The Essence of Continuous Process Improvement

Process Flow Charting Symbols
A process or Storage point

Task
Predefined
Start, End Activity
Delay Decision, Check

Nature of Work – Value Analysis
Value-Added Work Non Value-Added

Work
Process steps that are Process steps that are
Essential to Produce & Deliver non-essential
the Product or Service to To produce & deliver the
meet the Customer’s Product or Service to meet the
Need & requirements. Customer’s Need & requirements.
Customer is willing to pay Customer is not willing to pay
For the step. for the step.
Process steps that
Are not essential
But that allow
Value –adding
Tasks to be done
Better/faster
Value Enabling- Work

Type of Non-Value : Added Work
Internal failure Delay External failure
Preparation/Set-up Control/Inspection Move
• Look for
Re-evaluate, Remake, Redo, Recall, Recheck, Rework,
Repeat, Redesign, Revise, Reject, Retest, Reship, Return,
Reissue, Re-measure, Retype

Process Mapping
Team Exercise
• Purpose : To get graphical illustration of the process which

creates an output
9 List General Process steps & Major customer key Output variables
(CTQ)
9 Identify Value added (VA) & non-value added (NVA) steps in
process
9 Show CTQ at each process step.
9 CARES (Combine, Add, Re-arrange ,Eliminate, Simplify)

Process
In any case. . .
X function
unction
Y

Process
MAN METHOD
MEASUREMENT
Machine
Service function
unction
other
This Time
Time
Product Nex
t Ti
me
Material
MACHINE MATERIAL
ENVIRONMENT
Y = f( lots of x’s)
Source & Type of Variations
MAN
MACHINE P
Source of Variations-6Ms R
MATERIAL
O
C
METHOD
E
S
MOTHER NATURE
S
MEASUREMENT
Type Definition Names
Common No undue influence by one of Expected, Normal,
Cause the 6Ms Random
Special Undue influence of the one of Unexpected,
Cause the 6Ms Abnormal, Non-
Random

Preparing for the Analyze step
Start thinking in Scientific Terms
Y = f ( X1,X2,X3…,Xn)
¾ Y = Relates to the Outputs

¾ X = Relates to the Process & Inputs
¾ Identify Xs that might Explain Variation in the Output
measures
¾ Collect Data Efficiently – Both the Ys & suspected Xs

Cause & Effect Diagram (Fishbone)
MAN MACHINE
MEASUREMENT
Root Causes – Grouped in Six Categories

Man ,Machine, Material, Method,
Measurement & Mother Nature
MATERIAL METHOD MOTHER NATURE

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

Sigma DMAIC methodology. It's a great Six Sigma tool that doesn't
involve data segmentation, hypothesis testing, regression or other
advanced 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 of

thumb), you can peel away the layers of symptoms which can lead
to the root cause of a problem. Very often the ostensible reason for
a problem will lead you to another question. Although this technique
is called "5 Whys," you may find that you will need to ask the
question 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 that
don't meet their specifications.
1. Why are customers being shipped bad products?

- Because manufacturing built the products to a specification that is different from what the customer
and 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 manufacturing
directly to begin work. An error happened when the specifications were being communicated or written
down.
3. Why does the sales person call the head of manufacturing directly to start work instead of following
the procedure established in the company?
- Because the "start work" form requires the sales director's approval before work can begin and
slows 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 authority

is 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.
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
teach a person to "bluff" a hand

than it is to try to directly solve the stated problems
Road Map : Improve

Generate &
Implement Solutions
Select Solutions
Deliverables : Deliverables :
¾ Statistically Propose ¾ Proposed Solution
Solution which will meets or exceeds the
meet or exceed the Quality improvement
quality improvement Goal.
goals.

Improve Phase Objectives
9 To develop a proposed Solution

9 Identify an Improvement Strategy
9 Experiment to determine a Solution
9 Quantify financial opportunities
• Confirm that Proposed Solution will meet or Exceed Performance
Objective
9 A Pilot include one or more small scale of Tests of the Solution in a
real world business environment.
9 To Statistically confirm that an Improvement Exists (Hypothesis
Test).
• To Identify resources required for a successful Full-Scale
Implementation of the Solution.
• To Plan & Execute full Scale Implementation including training,
support, technology rollout, Process and documentation changes.

Generate And Select Solutions
Focus And Select Vital

ANALYZE Few Causes
IMPROVE
Generate Ideas
BRAINSTORM (Raw “Material” for
Solutions)
Synthesize Ideas
(Build potential
FILTER Solutions)
Refine, Evaluate & Select Pilot
(Select Best Solutions)
Develop
Solution
“Proposal “

Counter Measures
Sl.# Root Cause Counter Measure Practical / Feasible Effect

(Xs) (Solution) Logical (Impact )

Why PILOT
• 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.

Failure Mode & Effect Analysis
(FMEA)
• FMEA is a simple tool to prioritize the failure modes & actions
Tool
• 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-
FMEA
voting
• We shall focus on Process FMEA (Design FMEA is used in

designing products)

FMEA Concepts & Output
Effect
Severity
Risk Action
Process / Product Failure
Cause Priority Plan
Characteristics Mode
Number
Occurrence
Control
Detectability
• Risk Priority Number (RPN) = S*O*D

• Severity, Occurrence & Detectability are measured on a scale of 1-10

FMEA Concepts & Output
• Process / Product characteristics - Purpose of the product or

Process
• Failure Mode - How can the product /
process fail to function?
• Effects - Which effects are most
severe to customer?
• Causes - Which causes are most
likely to occur?
• Controls - Ability for current controls
to detect causes?
• RPN - Which high risk cause we
work on first?
• Action Plan - Recommended actions &
responsibilities

Scales of ‘SOD’ - Occurrence
• Occurrence is the probability that a specific cause will result in the

particular failure mode
• Rating Scale:

Scales of ‘SOD’ - Delectability
• Detectability is the probability that a particular cause will

be detected
• Rating Scale:

FMEA Table
FMEA Table

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

definitions 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 to
eliminate/ transition a root-cause that will be studied in step 9 of
DMAIC.
• New SOD ratings shall be given only at the time of project closure
when counter-measures would have been implemented & effect
seen on “failure mode”
• Project teams must review the RPN’s periodically

Road Map : Control

Monitor Improved Standardization &

Performance Documentation
Deliverables : Deliverables :
¾ Monitor Process Stability, ¾ Implement Process
Process capability & Process control system &
control after implementing Project Closure
solution on a ongoing basis.

Control – Main Objective
• Make sure Process stays in control after the implementation of the

Solution.
• Quickly Detect the out of control state and determine the associated
special cause so that action can be taken to correct the problem.
• Keep Xs with in tolerance by using appropriate controls (Risk
Management, Mistake Proofing)
• Apply Control Charts to Xs to monitor & control variation.
• Understand Implication on existing quality plans due to

modifications of current control systems.
• Establish transition plan for maintaining control of improved

process.

Process Control System
• A process Control System
9 Strategy for maintaining the improved process performance over time.
9 Identify specific tools required for sustaining the process
improvement or gains
• A Control System may incorporate
9 Risk Management
9 Mistake proofing device
9 Statistical Process Control (SPC)
9 Data Collection Plans
9 Ongoing Measurement
9 Audit Plan
9 Response Plans
9 Product drawing
9 Standardization
9 Process documentation
9 Process Ownership
9 Process Certification

Technical Definition of dashboards Dash Board
What is a DashBoards?
A dash boards is numeric indicator of all the critical parameters

needed to drive Process Engine.Two measures are on the dash
boards
Effectiveness Measures: Input/Output

Efficiency Measures : Process

Technical Definition of dashboards Dash Board
What measurements do you use ?

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

Output Measures Dash Board
Defining Y – Output Measures :: Wing-to-Wing Measure
• This Measure is from Customer Point of View

• Includes whole process not just ‘touch time’
• End to End Measure - Input to Output

Monitoring - Dashboard
A Visual Display Of current performance of Key Measures like Input ,Process

& Output indicates status as “ In-Control “ or Out-Control “
Process Input
Input
Input
Output
Input

How you can get Involved today…
Think about your own Metrics.
Who are your customers – Internal and External.
What do you deliver to your customers ?
What do they think is critical to their using your product to get their job done?
How do you measure up ?
Participate in Black Belt or Green Belt Projects.
Your role as project team member or resource to project.
Become an advocate…….
Transformation due to Six Sigma
Customer Focus
Ro
e
icl
bu
eh
st
V
Pr
ge
oc
an
es
Ch
e
ess
ur
Te
lt
Cu
am
ta
ing
Da
Financial Gains
.
THANK YOU
FOR YOUR TIME
Z Value 6σ Common term
Definition of Z Value Concept of Z Value
It is standard normalized**value for various

*
normal distributions to make easy LSL USL
statistical analysis. 1σ
X -T
Z=
Z is ratio value that difference between σ
X(USL***or LSL) and target is divided

standard deviation (s). T=μ
In a Process, if six standard deviations are

That is numeric part of σ Level. between spec.(USL, LSL), then we call “6σ
level” .
When Z is 6, it is 6σ level.
It is good process that has 3.4ppm, that is 3
or 4 defects per million.
* Normal distribution : As bell shaped distribution, left side is same as right side by axis mean(μ)
** Standard normal distribution : mean is “0”, standard deviation is “1” normal distribution
*** USL : Upper Spec Limit / LSL : Lower Spec Limit
Visualizing the Answer Sigma & Cp
20
25 30
Process Average
(15 seconds)
Design width
(30 seconds)
Since this is a one sided specification (upper limit only) we are only
concerned with the right side of this diagram. There are 3 units of
standard deviation between the process average and the closest
specification limit. Therefore, this is a 3 sigma process.
Calculating the Answer Sigma
Z Value or Sigma Value
Z= USL - X
σ
Z = 30 - 15 = 3
5
Great Truths about
Six Sigma
brought to us by various cartoonists
Always listen to the market
Use check-lists for testing
ears
neck
feet
Select significant attributes for your forecaster
Which one
Is mine?
Support! different situations by specific tools
Look for efficient solutions
What suits one customer might not suit the next
Forecasting and optimization are complex
Come on! It can‘t go

wrong every time...
Not every presentation is successful
Simulation expertice helps
Get Better or Get Beaten....
Deadline is deadline !
Maths is not everything

Kaam Ki Six Sigma

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WELCOME

) 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.

) 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 )

your active participation:

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

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

knowledge in our lives.

MNYL’s Perspective on Quality

• “Quality is Fitness for use “ Juran

• “A product or service possesses quality if it helps somebody and

• “Quality is conformance to requirements” Crossby

• “Quality is as perceived by Customer “ Anonymous

• Six Sigma Launch

2002 2003 - 2004 2005 - 2006 2007 - 2008

INTEGRATION / PERFORMANCE / RESULTS

Quality Leader Functional Quality

Champion Black Belt/Green Belt (Team Leader)

9 Higher level of learning in Basic Quality Tools.

9 Yellow belt projects create applicable benefits for MNYL.

9 Certification methodology ensures focussed Learning.

9 Nursery for creating Future Quality Project leaders.

9 Get taste of Quality and learn usable tools in a simple

9 Direct Nomination to the Green Belt program on

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

STEP 3 : Successfully pass the Yellow Belt Post Training

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.

ÉMeasurable & data based

What is different about

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

É Improvement comes on a project by project basis.

É Management care and feeding is required.

What`s Not New

¾ Alignment of Six Sigma Initiative with Business Objectives

¾ Improvements Instutionalized and “Cross-pollinated”

¾ Structure and Organization of Tools

¾ Personal Computer Technology Facilitates :

¾ Have a common language

A Universal Measurement Scale ...

Purchase Order Generation ) 98% Accuracy

Accounts Receivables ) 33 days average aging

Customer Service ) 82% rated 4 or 5 on responsiveness

Supplier Delivery ) 95 % on-time delivery

Which process is performing best ?

A Traditional View The Six Sigma View

• IT MEANS OPERATING IN 1 / 2 THE

Two Meanings of “ Sigma ”

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

As defects The Sigma Capability

Design for Six Sigma (DFSS)

World Class Sweetest

Two Sigma 308537

σ PPM %age • 1 misspelled word in all of the books

Are you satisfied

99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)

Unsafe drinking water for One unsafe minute every seven

5,000 incorrect surgical 1.7 incorrect operations per week

200,000 wrong drug 68 wrong prescriptions per year