Basic Concepts of Six Sigma

8/6/2019 Basic Concepts of Six Sigma

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Yellow Belt Yellow Belt Yellow Belt

an integrated approach to massification of Six Sigma movement

SmallIDEAS

HUGEDividends


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Wh at is QUALITY


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Customer Confidence

Continuous

Improvement

Need For QualitySystem

LessNonconformity

Competitiveness Optimum ResourceUtilisation

Why we need Quality System


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M anufacturing Systems improvementFocus P roduct Quality

QC

QA

TQM

Six Sigma

Total optimization of Services ,Designand development,

P roduction, and Sales Is necessary !! Six Sigma M anagement

Focus Customer Satisfaction

P roduction line focused ImprovementFocus Inspection

Quality Evolution &Quality Evolution &Six SigmaSix Sigma


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Wh at is Six Sigma all about ?Wh at is Six Sigma all about ?

P owerful methodology to improve business processes

C ustomer focus A TTITUDE.

View quality externally from the customer s perspective

Measure the same as the customer does

DI SCIPLINE to meet the customer expectations every time

L inkage to company bottom line / RO I


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From Big Y to little y

Custom er says: I j ust want a Custom er says: I j ust want a good cup of coff ee! good cup of coff ee!

BIG Y( CTS)

What ar e t he attr ibut es t hat ma ke a cup of coff ee g ood?tast e ... hot ...... port ion ... app earanc e ..

big Y s( CTQ)

little y s( CTP)

What is t het emp eratur e?

16 oz

0.1 l

C lean cups,

no f loat ers,r ic h loo k...

Y ummy


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Flowdown from Big Y to little x

Y

CTQCh aracteristic

X y x

CTP M easurableCh aracteristics

InputCh aracteristics Input Controls

ppm coffee

pH

T aste Test Survey

C offee Meister Result

T aste

T emp

P ortion

Appearance


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Six Sigma Organization

Key Role Description

Sponsors Senior most management provide resources, remove bottlenecks, setpriorities & give direction. Catalyze deployment

Champion Senior management with responsibility for the success of the initiative.Own deployment & track the project, its people & output. Do periodicmonitoring.

Master Black Belt Teachers, trainers, reviewers and mentors of the Black Belts. Identifyopportunities to apply Six sigma & map business goals to projects.

Black Belt Leaders of teams that employ the DMAIC or DMADV methodology F ull Time

Green Belt Owners of projects that improve a process or product P art Time

D eployment T eammembers

K ey stakeholders, firm or supplier resources, assigned to a Six Sigmaproject P art/ F ull Time


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Business Imperatives

Reducing c h urn

Collection

C SAT

Customer Acquisition

Network Quality

Revenue En h ancement

Cycle Time Reduction


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Mapping Process ActivitiesIdentification of Wastes

Identification of 7 Wastes Reason

Listen to the voice of process

Brain storm solutionSelection & Implementation

Validating Potential FailurePutting Control on process

MAK E THE C AS E FOR ACTION

Define

L E ARN ABOUT THE Y

Measure

L E ARN ABOUT THE Xs

Analyze

PROVE THE S O L UTION

Improve

S U S T AIN THE S O L UTION

Control

Identify Customer &needs

Defining Problem / GoalForming TeamSetting Milestone

Lean 7 Wastes

Process Map& VA/N VA

Lean 7 Wastes

MistakeProofing

Charter &CTQ Drill Down

L ean & Si x Sig ma M odels- D MAIC A pproach


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Yellow Belt i n day to day l i fe

I dentify any one pain area viz.

B illing to payment posting

Customer walk-in to Reliance web world / Reliance

office /Channel partner for a new connection ( P ostpaid

/ P repaid) to activation


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Define


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Project Charter


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P roject Title:P roject Title: Increase % of CAF submission wit h in 7 daysIncrease % of CAF submission wit h in 7 daysB usiness Case ( B enefit Analysis(Projected Savings ): Specific Problem Statement :

Opportunity Statement

In Scope :

Out of Scope :

Project Scope

Process :

Start Point :

End Point :

Specific Goal Statement :

Project Charter Project Charter

Define process (In this case CAF submission)

What is the trigger point of theprocess (In this case First Call made)

When the process will end ( In this case CAFreceived and data entered in System)

The boundaries of the project , in which projectwill focus

Areas beyond project scope or not covered inproject

CAF submission is XXX % and this results in the line gettingbarred. This leads to revenue loss and customer dissatisfaction.This project aims at increasing the percentage of submission of CAF within YY days from the First Call Date(FCD). This project will aim at preventing the dels gettingbarred due to non submission of CAF

What : What is the problem (in this case CAF submissionwithin SLA is low)

When : Since whenWhere : (Business location)How : (What is the current state)

To increase the % age of CAF submission from _________% (As on ____month) to _____ % by ________ Month

Current Performance: (Situation as of now)

Cost savings I N R : (Estimated Savings in MI N R per annum if project goal is achieved)

Current Sigma level :


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Tollgate Review

Dates

Project Lead :Sponsor :Champion : Local Coach :T eam Members :

Resource PlanT ollgate D ate Signoff by

(xx/xx/xx) Champion

Define

Measure

Analyze

Improve

Control

D efine

Once in a Week

ReviewReview frequency

Review responsibility

Champion/Local Coach/BE Team

Project Charter Project Charter

Project T itleProject T itle : : Increase % of CAF submission within XXX daysIncrease % of CAF submission within XXX days

Project Charter Sign-off:

Team Leader: Local Coach:QE Head:Champion (Immediate Sup/Team Head):

Sponsor (Circle BU/ Fn Head):

Milestones:

Stages Start D ate End date

D efine

Measure

Analyze

Improve

Control

B usiness case :B usiness case :


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Business Case

The business case describes the benefit for undertaking a project.

A business case addresses the following questions:

Does this project align with other business initiatives?

What is the focus for the project teams?

Where should the teams work begin and end?

What impacts will this project have on other business units and employees?

What benefits will be derived from this project?

Has the value of the benefits been quantified?


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Problem statement

The Problem statement usually answer questions:

O ur complaints haveincreased drastically and we need to improve it

What is the pain

Where is it hurting

When is it current? How long it has been?

W hat i s the extent of the pa i n

Better Problem S tatement Customer compla i nts (what) th i s quarter (when) have i ncreased by 25% (extent) as compared w i th last quarter. Th i s w i ll result i ncustomer d i ssat i sfact i on & more no. of calls at BPO (where)br i n g m i ssed as well as adversely effect our new acqu i s i t i on(where) for our re gi on.

Problem Statement:


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The opportunity statement describes the why of undertaking the improvement initiative.

The opportunity statement should address the following questions:

What is wrong and not working?

When and where do the problems occur?

How extensive is the problem?

What is the impact pain on our customers, business, and employees?

Does it make strategic sense to address this problem?

Opportunity statement


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What is the improvement team seeking to accomplish?

How will the improvement teams success be measured?

What specific parameters will be measured?

What are the tangible, hard results deliverables (e.g. reduce cost, cycle time, etc.) ?

What are the intangible, soft deliverables / results?

What is the timetable for delivery of results ?

Goal statement

Reduce CA F rejections from 20% in F eb-07 to 10% by 31 May 2007 Reduce Customer Waiting Time from 15 mins. in Mar-07 to 10 mins. by 30 Apr 2007


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W hat is Project Scoping ?

The scoping of the project is done so as to get focus on critical characteristic of the process /

product. I t includes where does the project start and stop along with constraints and

assumptions.Its an attempt to define what will be covered in the project deliverables

Project Scope

Scoping sharpens the focus of the project team & sets the expectations right

Types of Scoping

Longitudinal Scoping :- Location , Area

Lateral Scoping :- Products , Function


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Process Mapping


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L et us understand

Current process

P erformance level of the process

Customer expectations

Gaps in the current process


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At least T h ree Versions(Usually)

Wh at You T h ink It Is... Wh at You W ould LikeIt To Be...

Wh at It Actually Is...

Operation

Storage

D elay or

temporaryStorage

Decision

T ransportation

Inspection

W aste/NVA Reduction Yellow Belt Approac h

Start/ End

Process Flow Line

D ecision B ox

Connector

D elay

D ocument

Storage


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D efine

As-Is Process

Identify Gaps/ N VA

xxxx yyyy1 yyyy2yyyy3data?

xxxxx

ddddcorrec

t?ddddd

ddddd

xxxx

aaaaaaa

A

A

Y

NN

Y

N

yyyy

A

Y

xxxx

Y

N


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D efining Value Added

&Non Value Added Activities

Value Added & Non Value Added Activities


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Value Added ( V A) ActivitiesT ask which add function,features to the service offered or to the organization

T ask which enables competitive advantage forReduced priceFasters deliveryP roviding service delighters

Customer sees the value of t h at activity being bundled in the serviceWilling to payWill be happy to know we are doing that activity to enable his service

Value added activity also enables t h e CTQ of the process (stated purpose)

Note :- All activities related to Law , Regulatory Authorities , Financial Reporting , Government P olicies take as given will be considered as Operational

Value Enabling Activities.Efforts must be eliminate/at least reduce the cost .


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Non Value Added(NVA) Activities

T ask which do not add any value to customer nor it is paid . I t is sheer waste andefforts must be to eliminate it or at least to reduce it if elimination is difficult /not possible to begin with .

Rework

Inspection / Re-inspections

Excess controls viz. multilayer approvals C h arter of aut h ority

Counting / Sorting

Transportation & Handling delays

Inspection or Reviewing

Setup or Downtime

Holding or Delaying in Bins

Correction for errors

Defective services

Attending customer grievances related to services

W aiting to process t h e delivery to customer

W aiting for information from some ot h er function / process and so on .


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Activity Customer Value-Added

Operational Value-Added

N on Value- Added

Transfer all the Process mapping steps to Activity column here.

Linking Value Analysis W it h P rocess Flow


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DDefects in serviceefects in serviceOOverproductionverproductionWW aitingaiting

NNonon--utilizedutilizedpeoplepeople

TTransportationransportationII nventorynventoryMM otionotion

EExtraxtraprocessingprocessingRReinventing theeinventing thewheelwheel

IF IT DOESN T ADD VALUE, IT S W ASTE .

Valueadded

5%

Non-valueadded

ELI M INATING THE W ASTES


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OVER SELLING

ACQUIRINGOF W RONGCUSTO M ERS

W RONG CO MM IT M ENT BYSALES

ERROR IN BILL

NON-COMP LIANCE

OF SLAs

SCENES IN ORGANIZATION W ASTE - DD efects in serviceefects in service

RE-RAISEFAULTS

W RONGUP DATION OF

P AY M ENTS

NON-DELIVERYOF BILLS

W RONG LOGGING


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SCENES IN ORGANIZATION W ASTE - WW aitingaiting

SUB M ISSION OFDOCU M ENTS

RECTIFICATIONOF TAGS

W ORK ORDER CREATION AV/CV RE P ORT

DIGGING FOR RFS-21 CASES


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ACQUIRINGW RONG

CUSTO M ERS

Low AR P U,Defaulter

M ORE VISITS TO

RETAINCUSTO M ERS

UNP RODUCTIVEM AINTENANCE

RETENTION OF LO W ARP UCUSTO M ERS

SCENES IN ORGANIZATION W ASTE - NNonon--utilized peopleutilized people


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LOCATION OF DRO P BOXES

REFUND CHEQUE

M OVEM ENT OFCUSTO M ER CO MP LAINTS

M OVEM ENT

OF CAF

SCENES IN ORGANIZATION W ASTE - TTransportationransportation


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SO CREATION

COMP LEX W ORKFLO W S

SCENES IN ORGANIZATION W ASTE - MM otionotion

SUB-O P TI M ALP ERFOR M ANCE OF FLO W S


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SCENES IN ORGANIZATION W ASTE - EExtra processingxtra processing

INCO MP LE CAFP ROCESSING

CV REJECTION

REJECTION DUETO NET W ORK


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SCENES IN ORGANIZATION W ASTE - RReinventing the wheeleinventing the wheel

NON-SHARINGOF KNO W LEDGE

LOW NETW ORKING AM ONG K-

COMM UNITY

LOW REP LICATIONRATE

LOW FOCUS ONEXTERNAL LEARNINGS/

BENCH M ARKING

LOW FOCUS ONEXTERNAL

LEARNINGS/BENCH M ARKING


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Summary of Define p h ase

P roject charter

P rocess Mapping

V A,VE & N V A Activities

7 T ypes Of Waste

Quick win


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Exercise -2

D ivide the Group in teams and develop a As I s Map

of any process (as chosen by the Group) .

T he group also needs to find Value added / Non

value added in the As I s P rocess map and at

least two nos of Quick win opportunities


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Measure


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Identification of CTQ


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D fiId ifi i f S b C T Q d h i i l d fi i i


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D efineIdentification of Sub C T Qs and their operational definition

CTQ%CAF Submitted within SLA

CTQ 1%CAF with incomplete documents

CTQ2%CAF with incomplete details

CTQ3% of lines barred due to CAF notremitted

Operational Definition

N o Of CAF with incomplete document * 100Total CAF Received

N o Of CAF with incomplete details * 100Total CAF Received

N o Of CAF submitted within 7 days * 100 Total activations

N o Of CAF not remitted at Reliance * 100Total CAF Received


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Operational D efinition :-

It is precise definition of criteria for measurement of data..

T he following things must be clearly defined

Data Source & Location

Sample Size

Who will collect data

What to measure

When will the data be collected

How will the data be collected .


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Operational Definition is required

-To create common understanding among people

- Consistency and Reliability of data

- Scope of measurement

Example Of Operational Definition:-

F light Take O ff Time:-

When the flight doors are closed and Captain announces F light Ready To Take O ff

Setting of proper measurement system is key to t h e success of t h e projects

D efineP f l l


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D efinePresent performance level

Si C l l Si l

N ( s pl siz )

No o f De f ect s

Opp ortu nit y

DP MOSi


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Summary Of M easure P h ase

CT Q

Sub CT Q

Operational

D efinition

P rocess Sigma

Level


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Exercise -3

Following is the summary of C AF

as rejected from a total of 5000

nos in Oct 2007 on account of

defects as listed in the table .

Calculate the Sigma Level for the

data based on DP MO

Methodology

Defect type in CAFTotal nos Rejected dueto the defect in Month

Oct 2 00 7

Incomplete address 4 0

Address proof notattached 10

Wrong entry of N ame 25

Wrong Gender indicated 8

Wrong Tariff Plan 1 2

Wrong Billing address 2

Cheque details not legible 5


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A nalyze


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I ntroduction to 7 QC tools

7 QC T l


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7 QC Tools

QC Tool D escription Of ToolTool D eals

W ithParetoD iagram

To pick up the important fewproblems from the trivial many Numbers

HistogramTo see distribution patterncompared against standard values Numbers

Check SheetTo collect data in simple manner toprevent omitting the checks

Numbers, Y /N,T rue/False

GraphTo put the data in visual & easilyunderstandable manner Numbers

Cause &EffectD iagram

To recognize the factors which areinfluencing the problem Ideas

Scatter D iagram

To see the relation between twosets of data . Numbers

Control

Charts

To see the process is under stable

condition .Numbers


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Histogram

I f you can divid e your data into th e class int e rvals ( continuous) than histogram should be us ed els e Par eto Chart is suita bl e .

Sp ending p er Stud en t in some school

A histogram is us ed to graphically summariz e and display th e distri bution of a

proc ess data s e t .

I t is a v ertical block having class int e rvals in x-a xis . This graph

has no spac es be tw ee n th e b locks .


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Defect Tally Total

Wrong N ame 6

Wrong Billing Address 1 2

Wrong Tariff Plan 10

Wrong Bank Details 8

Total Defects 36

Total CAF Checked 72

Defects/CAF 2

Check sheet are used to gather data on a specific information needed

The data from the several check sheets can be organized in to Pareto chart for final analysis

IIII

IIII

IIII

IIII

IIII

III

II IIII

I

Check Sheet


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Bar Charts


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Bar Chart Of Target & Actual Sales

Bar Charts

h


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Pie Chart

U s ed for discr e t e data wh en on e has th e fr eq u ency of occurr enc es for a

giv en cat egory

Analyze


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PeopleMethod

Machine Material Environment

a y eCause & Effect Diagram

V isual tool to brainstorm th e pro ba bl e caus es for a particular eff ect to occur Th e final answ er that you may g e t could be a root caus e

It is not critical under which category a[particular cause falls butis more important to arriveat a group consensus for the category in which thecause falls

A l


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Analyze

Cause & Effect Matrix

Y 1 Y 2 Y3 Y n Output Indicator

10 8 7 Importance

Causes fromC&E diagram

X1 03 9

87X2 3 9 3 51

X3 9 9 3 18 3

X4 03 3

45X5 0 3 9 87

Scale : 0 = N one, 1 = Low, 3= Moderate, 9= Strong

C

E tri N ote:Add output from Team Charter to Y. Circle those Xs that are prioritized.

S Di


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Strong positive correlation Strong negative correlation

Weak positive correlation Weak negative correlation

N o correlation

Scatter DiagramScatt er diagram s how s w he t he r or not t he r e ex ist an r el ations h ip be tw ee n

t he two varia ble s .


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E ercise 4


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Exercise -4Following is the summary of C AF as

rejected from a total of 5000 nos in Oct

2007 on account of defects as listed in the

table .

P repare a P areto Chart with this data and

evaluate defect types contributing to 80 %

of C AF rejections

D evelop a Fish Bone D iagram for C AF

rejection identifying P otential areas

leading to C AF rejections (T eam Exercise)

Defect type in CAFTotal nos Rejecteddue to the defect in

Month Oct 2 00 7

Incomplete address 4 0

Address proof notattached 10

Wrong entry of N ame 25

Wrong Gender Indicated 8

Wrong Tariff Plan 1 2

Wrong Billing address 2

Cheque details notlegible 5


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I mprove

Analyze


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5 Why Analysis for Root Cause

Validated

RootCause

W hy1 W hy2 W hy 3 W hy4 W hy5 Actionable


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I mpact on P roject CTQ Effect the solution will have on the goal statement

Time I mpact time required to implement the solution

Cost- B enefit I mpact financial impacts associated with each solution

O ther I mpacts special items that the organization wants to keep visible

during the solution making process

Rank & Select Solution

Improve


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Rank & Select Solution

Identify all rootcause here .

Impacton goal

T imeImpact

CostB enefitImpact

Other Impact

Evaluation criteria

10 8 7 Importance

Solutions

Solution 1 1 5 9

Solution 2 3 7 3

Solution 3 9 8 3

Solution 4 6 2 3

Solution 5 4 3 9

Scale : T o use 1-10 for relation & not 0,1, 3 ,9 scale


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Piloting Solution

W hy Pilot?

Pilot reduces risk of failure by identifying potential failure points

Increase organization buy-in.

Validate and refine cost and benefit estimates

Perform adjustments and observe solution implication

Improve


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Development & Execution of Pilot PlanRootCause

ActionPlan

Pilotlocation

Pilot date Responsibility

ResultVerification

MassImplmnt

X1 Y 1 L1 D d/mm/yy abc Ok/Not OK Yes/No

Proposed New Process


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xxxx yyyy1 yyyy2yyyy3data?

xxxxx

ddddcorrec

t?ddddd

ddddd

xxxx

aaaaaaa

A

A

Y

NN

Y

N

yyyy

A

Y

xxxx

Y

N

p

D etailed Process Map for chosen solutionD etailed Process Map for chosen solution


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CTQ Trend


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Show CTQ trend graphically

Control Plan


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S.No.

I ssue /P roblem

Root causeidentified

I mprovement suggested

Status ControlP lan

Frequency

Resp

Control


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Before & After improvement

B efore(which Month )

After (which Month )

CT Q

Sigma

Annual Cost Savings INR

Start D ate

N ote: Financial Controller or Accountant must certify savings.

Proje ct compl e tion criteria


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Pro je ct compl e tion crit eria

Requirements for project completion

Successful completion of Projects

Results demonstrated & Validated By Process Owner, Circle

Finance Head & Functional Head

Project Closure Approval by Circle Head / Business Head

Project approved by Head- Quality Excellence

Project Closure Report (PCR) signed off

Project Closure Report


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CTQ TrendCTQ Trend

FinancialFinancialImpact:Impact: Rs. .. Lacs p.a.

No. of ProcessNo. of ProcessChangedChanged

No. of ProcessNo. of Processautomatedautomated

ProcessesProcessesMistakeMistake- -

proofingproofing

KnowledgeKnowledgesharingsharing

No. of No. of Best PracticeBest Practice

No. of KnowledgeNo. of Knowledgesharing sessionssharing sessions

Project Name :

53.57%52.99%

52.48%

51 .56%

55.43%56. 1 2%

60 .39%

64. 1 7%65. 10 %

50 .00 %

51 .00 %

52. 00 %

53. 00 %

54. 00 %

55. 00 %

56. 00 %

57. 00 %

58. 00 %

59. 00 %

60 .00 %

61 .00 %

62. 00 %63.

00%

64. 00 %

65. 00 %

POD Sep' 0 4 Oct' 0 4 N ov' 0 4 Dec' 0 4 Jan' 0 5 Feb' 0 5 Mar' 0 5 Aprl' 0 5

Target

ProjectLeader

ProcessOwner -Circle

BusinessExcellence -Circle

Champion(ImmediateSupervisor / Team

Head)

Regional BUHead

Finance Head Circle /Corporate

Sponsor (Circle BU/ FnHead)

Head QualityExcellence

Sign

N ame

Date

Team Members, who worked on the project1 .2.3.


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Project Initiation DMAIC ProcessY e llow Belt Pro je ct

nd To nd Proc ess

Project Selection

Team Member Selection

Champion, Local Coach, Sponsor Approval

Charter sign off & Registration

Project Review Process

Project completion and closure with financial sign off R & R


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T hanks

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Basic Concepts of Six Sigma

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