Lessons in six sigma viny

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Six SigmaSix SigmaSix SigmaSix SigmaSix Sigma

Debashis SarkarDebashis SarkarDebashis SarkarDebashis SarkarDebashis Sarkar

72 Must-know T72 Must-know T72 Must-know T72 Must-know T72 Must-know Truthsruthsruthsruthsruthsfor Managersfor Managersfor Managersfor Managersfor Managers

Response BooksResponse BooksResponse BooksResponse BooksResponse BooksA division of Sage PublicationsNew Delhi l Thousand Oaks l London

LessonsLessonsLessonsLessonsLessonsininininin

Six SigmaSix SigmaSix SigmaSix SigmaSix Sigma

Copyright © Debashis Sarkar, 2004

All rights reserved. No part of this book may be reproduced orutilized in any form or by any means, electronic or mechanical,including photocopying, recording or by any information storageor retrieval system, without permission in writing from thepublisher.

First published in 2004 by

Response BooksA division of Sage Publications India Pvt Ltd

B-42, Panchsheel EnclaveNew Delhi 110 017

Sage Publications Inc Sage Publications Ltd2455 Teller Road 1 Oliver’s YardThousand Oaks, 55 City RoadCalifornia 91320 London EC1Y 1SP

Published by Tejeshwar Singh for Response Books, typeset in 10.5pts Palatino by Innovative Processors, New Delhi, and printed atChaman Enterprises, New Delhi.

Library of Congress Cataloging-in-Publication DataSarkar, Debashis.

Lessons in Six Sigma: 72 must-know truths for managers/Debashis Sarkar.

p. cm.Includes index.1. Total quality management. 2. Quality circles. 3. Six sigma(Quality control standard) 4. Project management—Qual-ity control. 5. Industrial management. I. Title.HD62.15.S26 2004 658.4¢013—dc22 2004003805

Six Sigma is a registered trademark of Motorola, Inc.

ISBN: 0-7619–9843–8 (US-PB) 81–7829–367–6 (India-PB)

Production Team: Roshni Basu, R.A.M. Brown andSantosh Rawat

In the memory of my late father

Shri. Subhendu Sarkar

Who led a life of Six Sigma Excellence.

This book is dedicated to the following peoplewho worked silently to make me a better

human being

Fr Joseph LombartDr R K Patel

Mr Ashok Mittal

Contents

Preface xvii

Lesson 1Six Sigma is a structured problem-solvingmethodology which is a powerful leverfor business improvement 1

Lesson 2It’s the CEO and only the CEO who can makeSix Sigma successful in an organization 5

Lesson 3Take the members of the senior managementteam on board with a champions workshop 8

Lesson 4Precede Six Sigma deployment with anorganizational assessment 11

Lesson 5Create a deployment platoon for the executionof Six Sigma projects 14

Lesson 6The responsibility for the success of Six Sigmaprojects lies with the champions 18

Lesson 7Improvement with Six Sigma entails findingand working with critical X’s in a process 21

Lesson 8Build solid infrastructure pillars to supportSix Sigma in the organization 24

Lesson 9Appoint a marketing manager for sellingand marketing Six Sigma as a product tothe employees of the company 28

Lesson 10The quality council should drive Six SigmaImplementation across the organization 32

Lesson 11Bolster Six Sigma projects with a solidReview Framework 35

Lesson 12Becoming a master Black Belt requiresa practical demonstration of adeptnessin coaching, teaching, facilitation,consulting and mentoring 38

Lesson 13When hiring a Consultant for Six Sigmadeployment, ensure that all laid downcriteria are met 42

Lesson 14Beware of the Consultant who gives aProposal to improve an Organizational

viii LESSONS IN SIX SIGMA

Business Process all by itself, withoutthe involvement of employees 46

Lesson 15Continuously evaluate the effectivenessof Six Sigma teams 49

Lesson 16The composition of the Six Sigma projectteam is critical to its success 52

Lesson 17During the First Year of Six Sigmaimplementation, focus of deploymentshould be on Value and not Volume 56

Lesson 18Appoint a Dashboard Manager whois entrusted with the responsibilityof tracking process metrics 59

Lesson 19Six sigma deployment should precedewith the identification of Core BusinessProcesses 62

Lesson 20Do not take up Improvement Projectsin the cafeteria during the early daysof Six Sigma journey 65

Lesson 21Black Belts should not carry out smallimprovement projects (read: Green Beltprojects) in the garb of those being BlackBelt projects 68

CONTENTS ix

Lesson 22The project charter is a tool to manage,control and approve Six Sigma projects 70

Lesson 23Scripting the problem statement rightis vital to a Six Sigma project 72

Lesson 24An effective Six Sigma deployment requiresa holistic mechanism to capture the voiceof the customers 75

Lesson 25It is important to focus on the Right Measureto ascertain the efficacy of a process 79

Lesson 26Together with Sigma levels keep an eyeon the class of the process 82

Lesson 27While executing DMAIC projects do nottake short cuts. Follow all the steps 86

Lesson 28It is imperative that all Six Sigma projectsprovide Real Time Savings 90

Lesson 29Just by calculating the potential benefits in thebeginning and accrual benefits at the end ofa project, will not get the ‘wow’ from eitherthe CFD or his team members 93

x LESSONS IN SIX SIGMA

Lesson 30Six Sigma methodology is just not formanufacturing organizations. It can bedeployed in service organizations as well 96

Lesson 31Be on top of meetings. Let them be enablersto project improvements 99

Lesson 32Before setting out to do a Six Sigma projectensure that it is scoped well 103

Lesson 33The organization should have an effectivemethodology to ensure that there is acontinuous flow of ideas 106

Lesson 34All improvement ideas need not qualifyas candidates for Six Sigma project 110

Lesson 35Creating the right organizational structureis essential for Six Sigma deployment 112

Lesson 36Before determining the sample size andsampling plan, ascertain if the data formeasurement is from a moving processor is it from a stagnant population 115

Lesson 37Understand the key terms and the stepsinvolved in DPMO calculation 117

CONTENTS xi

Lesson 38DPMO is a good concept but be alertabout the confusions it can create. Mindlesslyincreasing the Opportunity Levels canIncrease the Sigma Levels 123

Lesson 39Do not be satisfied merely with Yields,commence with the calculation of aFirst Pass Yield 127

Lesson 40You can unfurl the non-value addedactivities in your process from DPUlevels by a measurement called theRolled Throughput Yield 129

Lesson 41Defects in a Six Sigma process withouta shift is 2 Defects Per Billion and not 3.4Defects Per Million opportunities 133

Lesson 42Get a sense of whether Six Sigma is deliveringvalue through the measurement of QualityCosts 136

Lesson 43When a process capability is reported,ascertain if it is a long-term or short-termcapability 140

Lesson 44People at the top should have a gut feelof the happenings at Ground Zero 143

xii LESSONS IN SIX SIGMA

Lesson 45As a Six Sigma change agent, master the artof conflict resolution 146

Lesson 46A defect is one which does not meetthe customer needs 148

Lesson 47Do not wait for problems to occur to initiateimprovements through Six Sigma projects.Proactively take actions when precursorsand evidences to a problem are seen 150

Lesson 48Look at processes end-to-end while takingup projects for improvement 153

Lesson 49Do not launch Six Sigma with the sole ideaof saving cost for your organization 156

Lesson 50Select the best performers to take upSix Sigma projects 158

Lesson 51Be extremely meticulous about the Book ofKnowledge being followed by the trainers toprepare your Black Belts or Green Belts 161

Lesson 52ISO 9001:2000 Quality Management Systemserves as an excellent platform for Six Sigmadeployment 165

CONTENTS xiii

Lesson 53Banish waste by enmeshing Lean Thinkingwith Six Sigma methodology 168

Lesson 54Appoint a Chief Process Facilitator for allSix Sigma team processes in your company 171

Lesson 55While focusing on primary metricsdo not forget to keep the secondarymetrics on the radar 174

Lesson 56Six Sigma deployment may be a miragefor small sized companies but there areways to go about it 177

Lesson 57Do not get perturbed if data pointsin your Six Sigma project have anon-normal behaviour 181

Lesson 58Deployment of Six Sigma does notcome cheap. Keep this in mind beforesetting out on a Six Sigma journey 183

Lesson 59Avoid pre-conceived solutions from gettingForce-fitted into a Six Sigma methodologywithout any data analysis 187

xiv LESSONS IN SIX SIGMA

Lesson 60The Human Resource Departmentcannot be a sleeping partnerin Six Sigma deployment 190

Lesson 61Six Sigma framework does not actat cross purposes in an organization’sjourney towards achieving businessexcellence 193

Lesson 62Once processes are improved using Six Sigmamethodology, it is important to take an allencompassing approach to ensure that theimprovements are sustained 197

Lesson 63Process audits are an integral partof Six Sigma deployment 200

Lesson 64Use Brown Bags to make your employeesrefresh their knowledge on Six Sigma tools andtechniques 203

Lesson 65Bolster your Six Sigma journey with a SolidRewards and Recognition Scheme 206

Lesson 66Remember to work on mistake-proofing whenimplementing Six Sigma solutions 214

CONTENTS xv

Lesson 67Be ruthless if Six Sigma objectivesare not met 217

Lesson 68In case control charts are not being usedby process team members, replace itwith pre-control charts 220

Lesson 69Six Sigma is not an off-the-shelf solutionto organizational pains 223

Lesson 70Statistical thinking should be a wayof life in a company working towardsSix Sigma deployment 226

Lesson 71Six Sigma project team leaders needto have focus, good relationships,communication skills, ingenuity andexcellent project management skillsto translate the charter into results 229

Lesson 72Do not be complacent if processes havereached at Six Sigma levels 232

Index 234

xvi LESSONS IN SIX SIGMA

Preface

Six Sigma is probably one of the best methodologies topervade the world of improvements. What differenti-ates Six Sigma from other quality methodologies is itsmeasurements orientation, rigorous training scheme,process centricity and stakeholder involvement. Thetools in Six Sigma are not new but its direct linkage tobusiness objectives and priorities, makes it a powerfulstrategy in business.

However there is a word of caution…….Six Sigma is a great methodology but often fails to

deliver sustained benefits when we forget the small littlethings that make a large difference. This book unfurlssome of those little things which are often lost andmissed during Six Sigma implementation. The Lessonsare essentially learnings captured during Six Sigmadeployment. The lessons may be ‘common’ andmundane but are quite ‘uncommon’ in workplaces.

As far as possible the book has been kept bereft ofjargons so that it can be understood by all and just notSix Sigma professionals.

A book like this does not happen easily without thehelp of people who work and support silently behindthe scenes.

l Chapal Mehra (Managing Editor, Response) andSunanda Ghosh (Head Marketing-Sage) foralways acceding to my unreasonable requests.This is not my first book with Sage but I can justsay its always a delight working with the team atSage.

l My mother, my wife Sudeshna and my little oneTrisha who have borne with my selfish pursuitswhich is often at the cost of spending time withthem

Please note that the lessons in this book areas observed/experienced by me as a student ofquality and Six Sigma. It is quite possible that youmay not agree with some of them. Should youhave any feedback please feel free to write to me [email protected]

Debashis Sarkar

xviii LESSONS IN SIX SIGMA

DEBASHIS SARKAR 1

Lesson 1

Six Sigma is a structured problem-solvingmethodology which is a powerful lever for busi-ness improvement

Six Sigma is a data driven structured problem-solvingmethodology for solving chronic issues facing abusiness. It is a breakthrough management process thatis used to improve a company’s performance byvariation reduction. The method encompasses breakingdown the customer’s requirements into steps topinpoint pains in a process. This results in the reductionof defects and sustenance of process improvement.

The Six Sigma methodology essentially has twoelements which comprises the voice of the customerand voice of process. It essentially entails reducing thegap between the two voices and ensuring that they bothmatch. What differentiates Six Sigma from other qualitymethodologies is that it can be used to solve keybusiness pains.

For the first time we have a methodology which canhelp quality professionals to add directly to the top line

2 LESSONS IN SIX SIGMA

or bottom line. Earlier quality professionals alwaysfaced a struggle because the impact of their work wasoften not felt in the company’s balance sheet. Six Sigmahas changed all of this. This methodology can beleveraged to address issues which can be used in anypart of the business. Traditionally quality tools havebeen used for solving only quality issues but this toolfacilitates the resolution of pains beyond the domainof quality. Some areas where Six Sigma projects can bevery effectively used are: Revenue Generation, CostAvoidance, Productivity Improvement, CustomerSatisfaction, Customer Retention and so on. This is justa partial list and can be further increased.

Six Sigma gives an excellent project managementframework wherein all power tools are packaged insuch a manner that it helps in providing the bestsolution to a problem. Tools used are not new but theway they have been structured gives its power.

Six Sigma uses a handful of powerful tools ofstatistics instead of getting lost in over 400 tools of TotalQuality Management (TQM). The beauty of the methodis in its ability to use these tools in a model known asDMAIC (Define-Measure-Analyze-Improve-Control).Also, Six Sigma has added a component of financialaccountability and demands a strong focus onmeasurement to constantly monitor the results of theimproved state.

The Six Sigma framework has also taken quality fromthe domain of quality professionals to others in theorganization. This is probably the best thing to happen.Earlier there was always a struggle to ensure thatquality seeps deep and wide in organizations. Despite

DEBASHIS SARKAR 3

all the efforts and various initiatives, progress was notas expected and it only ended with the jargon ‘qualityis everyone’s business’.

Six Sigma puts a stop to gut-based solutions andlooks at all variables affecting a process. The solutionsare validated statistically so that the chances of imple-menting a wrong solution goes down. It can be usedfor both service and manufacturing organizations.Earlier all quality tools had been manufacturing centricbut now this power packed method has been success-fully used in service companies.

What makes Six Sigma different is that it forcesindividuals to define customer satisfaction measuresand use teams to improve it. So it uses customer-focusedgoals and measurements and drives continuousimprovement at all levels of the enterprise. Wheneffectively implemented, the Six Sigma technique canhelp to ensure that both internal and external customersvoices are heard and efforts are made towards theirimprovement.

The power of Six Sigma can be leveraged by settingattainable short-term goals while striving for long rangeobjectives. It is imperative that the projects support thecompany and division goals that flow from top-levelcompany objectives. For making Six Sigma a success, itshould be treated as a business strategy and not justanother quality programme. Remember, the idealproject should have a connection to strategic objectives,should be recognized as being important to thecompany, can be completed within a reasonable timeperiod, has the support of the management and has anaccurate evaluation framework to ascertain itseffectiveness.


Let me caution that Six Sigma is not a panacea for allills plaguing a company. If there are events outside theorganization’s control, Six Sigma cannot be of anybenefit. For example, an economic crisis affecting theperformance of a company cannot be solved by SixSigma.

It has been seen that with the change in the leadershipof a company, the Six Sigma implementation can go todocks. It shall stay till there are leaders like Jack Welchwho give it the required thrust and understand itspower.

Six Sigma Takeaway

Six Sigma as a business strategy increases custo-mer responsiveness, builds customer relation-ships, improves organizational resilience torespond to market conditions and aligns peopleand processes behind agreed objectives.

DEBASHIS SARKAR 5

Lesson 2

It�s the CEO and only the CEO who can makeSix Sigma successful in an organization

Six Sigma should not be launched if the CEO does nothave the time for it or does not think it to be important.Six Sigma should also not be launched because the CEOfeels it is the latest from the quality stable. It shouldonly be launched when the CEO is convinced that it isthe methodology that is required for his/her company.He/she should have a strong rationale on how SixSigma can be a contributor to specific organizationalobjectives.

I strongly believe that it’s only the CEO who canmake a difference to a Six Sigma implementation.Internal experts such as Black Belts and Green Belts mayimplement Six Sigma projects, but it is the CEO whoowns them.

Whether it’s Bob Galvin at Motorola or Jack Welchat GE or Larry Bossidy at Allied Signal, it’s theirpersonal commitment and belief in Six Sigma that madethe difference. These leaders have given a new


definition to quality and proved that it can be a leverfor business improvement.

The CEO cannot just sign the cheque and take a backseat. He or she should understand what Six Sigma isall about and how it drives improvement to theorganization. He or she has to provide leadership andcreate a vision, provide necessary resources, give time,review and communicate to all that Six Sigma is theimprovement engine that will be the DNA of theorganization. It is his/her responsibility to ensure thateveryone gets involved in the implementation effort.

The CEO has to provide visible support to Six Sigma.Remember, Six Sigma quality is more of a culturalimperative that changes the way decisions are made.The CEO has to walk the talk and manifest that he orshe lives by the Six Sigma framework day in and dayout. The culture that is built ultimately converts goodstrategy into effective execution.

So what are the specific things a CEO should do tomake Six Sigma successful:

l Understand what Six Sigma is all about andhow it can be enmeshed with the businessstrategy.

l Create a shared vision that supports Six Sigma.l Be the biggest messiah and evangelist of Six

Sigma in the company.l Establish clear long-term objectives at a business

level wherein Six Sigma methodology can beleveraged (as 10X improvement in qualitylevels).

DEBASHIS SARKAR 7

l Lay down clear expectations from the seniormanagement team on their deliverables fromSix Sigma.

l Hold oneself and the senior management teamaccountable to Six Sigma deployment.

l Ensure that Six Sigma process improvementprojects are directly aligned to organizationalgoals.

l Review progress on a regular basis.l Set up a senior management team that oversees

Six Sigma implementation.l Provide all required resources in terms of

monies and infrastructure to make Six Sigmasuccessful.

Six Sigma Takeaway

The CEO should not treat Six Sigma as a qualityprogramme but should ensure that it becomes acultural platform which changes the organiza-tional fabric.


Lesson 3

Take the members of the senior managementteam on board with a champions workshop

Recently I received a call from an executive who workedfor a well known organization which had embarkedon a Six Sigma journey. He asked me how to explain tosenior management team (champions) that Six Sigmaprojects require specific steps to be followed and thatprojects cannot be completed in two–three weeks, asdemanded by some of them. There were other champi-ons who doubted the effectiveness of Six Sigma andeven said that it was another of those flavour of themonth management concepts that the company hadembarked upon. He also told me that such notionspersist despite the fact that Six Sigma was driven bythe CEO himself. On probing, I got to know that theorganization had commenced with Six Sigma deploy-ment after the CEO had visited a few Americancompanies which had reaped huge benefits from thismethodology.

Here was a case of an organization which hadcommenced with a Six Sigma journey without taking

DEBASHIS SARKAR 9

the buy in of the senior management team. Ideally,before embarking on a Six Sigma journey, the seniormanagement team should be taken on board and mustknow what Six Sigma is, what rigour it requires andhow it is different from other quality methodologies.

This is why a senior management workshop or achampion’s workshop should be organized beforecommencing on a Six Sigma journey. Through thisworkshop the champions are taken on board on all thatis required for successful Six Sigma deployment.Champions receive extensive training on the basics ofSix Sigma, project selection, management of Black Beltsand Green Belts, change management and so on. Suchworkshops could either be organized in-house ormembers could be sent to programmes outside theorganization.

The champion’s workshop is extremely vital as itsets the tone for Six Sigma implementation. Sincechampions are typically senior management staff suchas business heads or functional heads, the programmeshould deliver the maximum value in the shortestpossible time. It always helps to get an eminent SixSigma practitioner for such a workshop. Remember, thisis required because the attendees of this workshop aresenior people in the organization and the workshopshould convert them from cynics to Six Sigmaadvocates. If you are organizing a Champion’sWorkshop or choosing one for them, please ensure thatat least the following elements are covered:

l What is Six Sigma?l Why Six Sigma?


l Success Stories.l Basic Statistics.l Basic Six Sigma Tools.l Why is measurement important?l Traits of an effective measurement system.l Introduction to Process Capability.l Introduction to Minitab.l How to go about Project Selection?l Infrastructure for Six Sigma deployment

(Rewards and Recognition, Reviews, Com-munication framework, Project Managementwherewithal etc.).

l How to manage change?l Six Sigma and culture building.

Do not increase the duration of a champion’sworkshop beyond two days. The success of thechampion’s workshop lies in converting seniormanagement to Six Sigma advocates in the shortestpossible time. It is the champions who drive Six Sigmaand have the responsibility of making it a success.

Six Sigma Takeaway

Till Champions are not convinced with the powerSix Sigma, it makes no sense to go ahead withdeployment.

DEBASHIS SARKAR 11

Lesson 4

Precede Six Sigma deployment with an organ-izational assessment

After the CEO and the senior management haveundergone a Six Sigma alignment workshop (alsocalled: champion’s workshop), set up a core team whichis vested with the responsibility of making Six Sigmaan integral part of the organizational fabric. This teamshould comprise the functional heads, business heads(in case the company has a number of business units orprofit centres) and the quality head (also called thequality leader).

The first activity of this core group shall be to carryout an organizational assessment on the pointersmentioned below. This should be carried out by talkingto key people in the company and interviewing keycustomers and suppliers.

l Have processes been defined and mapped?l Are there process owners for the processes?


l What sort of measurement system exists toascertain effectiveness and efficiency?

l Are the customers, suppliers, inputs andoutputs of key processes identified and known?

l Is the voice of the final customer/end user (orconsumer) captured?

l Are consumers asked what is important forthem?

l What sort of corrective actions exist, when thereare consumer issues?

l What sort of competitive information do wehave ?

l Does everyone in the organization know whohis/her customer is?

l What sort of rewards and recognition mecha-nism is in place for quality improvement/con-sumer issues?

l How are conflicts handled?l Is the organization person dependant or process

dependant?l How are decisions taken ? Who takes them and

are they fact based?l Are people aware of the organizational objec-

tives and plan?l How is training and development decided

upon?

The objective of the exercise is to ascertain businessunits which would be votaries of Six Sigma andbusinesses which would face resistance. It shall alsothrow up business units where Six Sigma should bepiloted or taken up. For example, process improvement

DEBASHIS SARKAR 13

through DMAIC rigour cannot be carried out ifprocesses are not well defined (This has been discussedin detail in some other Lesson). The organizationalassessment helps in scripting a deployment strategyand unfurling the underlying culture.

Companies who have tried to imitate Six Sigmadriven companies without considering their underlyingculture have met with disastrous results. If thecompany’s culture is not conducive to Six Sigma, theculture must be changed before a Six Sigma programmecan succeed.

Six Sigma Takeaway

The culture of a company should provide a milieuwhich encourages problem solving, excellence andcontinuous improvement through Six Sigmadeployment.


Lesson 5

Create a deployment platoon for the executionof Six Sigma projects

While setting out on a Six Sigma journey, it is importantthat a deployment platoon of Six Sigma experts iscreated within an organization. This is required as theseexperts are responsible for driving change across thecompany. Unlike the other quality frameworks, thebiggest achievement of Six Sigma has been that it hasmoved improvement out of the domain of qualityfunction and taken it all across the company. Thehurdles faced by the earlier methodologies were thatimprovement was primarily driven by the qualitygroup as a result of which there were often issues ofownership during implementation. In case of Six Sigmathis has been overcome as it has been treated as astrategy for business improvement and not just qualityimprovement. In Six Sigma, what happens is that theimprovement tools are handed over to people outsidethe quality function.

DEBASHIS SARKAR 15

It has been seen that the structure given belowhas been most commonly followed in Six Sigmadeployment:

Champions

He or she is a senior manager who oversees the SixSigma projects. The person is mainly responsible forproviding direction on project scope and takes the onusof ensuring that the project is successful. The role of achampion is discussed in detail in another Lesson.

Master Black Belts (MBBs)

They act as internal coaches to Black Belts and areresponsible for a set of Black Belts to reach their projectgoals. He/she must have successfully completed anumber of Black Belt projects. He or she is generally astatistical and change management expert whoregularly deals with resistance to change and resolvesteam conflicts. They often serve as change managementconsultants to the senior management. They not onlyhave the knowledge of advanced tools and businessbut also leadership training. A primary MBB roleresponsibility is training and mentoring new BBs in theorganization. Certification as an MBB requires 20successful projects, about half of which are as a BlackBelt and half while mentoring BBs.


Black Belts (BBs)

They are full-time quality positions responsible forleading Six Sigma projects. They are project leaders whoare selected with different experience and academicqualifications. Black Belts should typically be fasttrackers who have a credential for accomplishments. ABlack Belt assignment should typically last for two yearsduring which the BBs lead 10–12 projects. BB receiveexhaustive training which lasts from anywhere between10 days to 20 days. To get certified as a BB a candidateneeds to complete the classroom training (spread overthree to four months), clear an examination andcomplete a project mentored by a MBB.

Green Belts (GBs)

They are employees who carry on with improvementstogether with their regular work. They are project teammembers and do not spend all their time on projects.They receive training on participation similar to that ofBBs, but possibly for lesser time. In some companiesGBs work on small projects (called Green Belt projects)that are directly related to their work.

Irrespective of the organization, the champion is amust in Six Sigma deployment. The deploymenthierarchies of Master Black Belt, Black Belts and GreenBelts are based on company requirements. In someorganizations, Master Black Belts are not there and BlackBelts are part-time roles. Some companies even have

DEBASHIS SARKAR 17

Yellow Belts or White Belts. Also, the certificationrequirements may vary from company to company. Theabove is just a suggested model. I would recommendthat a deployment hierarchy is created on the basis ofcompany requirements.

Remember, the term Blackbelt has been copyrightedby the Six Sigma Academy. So many organizations usetitles such as Leaders, Grandmaster, Champion orParagons to signify similar training.

Six Sigma Takeaway

Black Belts can come from any function. Whentrained adequately and given support, they canbecome change facilitators in the organization.


Lesson 6

The responsibility for the success of Six Sigmaprojects lies with the Champions

Who is a Champion? They are usually people who areworking at a level or two below the CEO. They aretypically Profit Center Heads, Business Unit Heads andfunctional heads such as Chief Human ResourcesOfficer, Chief Financial Officer, Chief Risk Officer etc.They lead Six Sigma efforts in their group and areresponsible for its execution.

If the CEO lays the seeds of Six Sigma, the championacts as a propellant in his/her group. He/she acts asthe gel around whom the Six Sigma initiative isanchored. They leverage the Six Sigma infrastructurecreated by the corporate quality cell or the QualityCouncil, to ensure flawless execution. The pillars of thisinfrastructure are things such as Rewards and Recogni-tion, Communication Plan, Review Mechanism, ProjectTracking Mechanism etc. These have been discussed indetail in some other Lesson. The champions facilitatethe selection and prioritization of right projects and are

DEBASHIS SARKAR 19

answerable on Six Sigma progress to the CEO or thetop management. They are also responsible forincreasing the internal capabilities to carry out SixSigma projects. Most important, they plan the deploy-ment so that no part of the system becomes over-burdened as the strategy unfurls, this is especially withrespect to data mining.

The Champions are expected to play the followingspecific roles in Six Sigma deployment:

l Own all the projects happening his/herbusiness group or function.

l Create an overall plan for Six Sigma deploy-ment.

l Ensure that all projects taken up make abusiness case and are aligned with the overallorganization strategy.

l Set specific Six Sigma deliverables from teammembers.

l Hold team members accountable.l Remove hurdles to implementation.l Deploy the best people on Six Sigma projects.l Review progress on a regular basis.l Communicate with Black Belts on a regular

basis.l Develop synergy between Black Belts and

ensure that they are brought together on aregular basis.

l Personally approve all Six Sigma projects.l Ensure that improvements are sustained once

the projects get over.


l Continually increase the Six Sigma capabilityby increasing the number of certified GreenBelts or Black Belts.

Remember, champions are the key element in thesuccess of Six Sigma implementation. Before anybodyelse, they should be the first one to be taken throughan awareness workshop which demystifies the SixSigma and explains how it can be used for businessimprovement.

Six Sigma Takeaway

The champions should leverage opportunities ofeach Six Sigma project to ensure that the impact ismaximized.

DEBASHIS SARKAR 21

Lesson 7

Improvement with Six Sigma entails finding andworking with critical X�s in a process

Solving problems using Six Sigma methodology canbest be described by the following relationship:

Y = f (X1, X2, X3 … Xn)

Where Y is the dependant output variable or theprocess output, X1, X2, X3 … Xn are called theindependant variable or process predictors, ‘f’ is thefunction that defines the relationship between theprocess output (Y) and the process predictor variables(Xs). Y is the effect or the symptom which is caused bythe Xs (i.e. X1, X2, X3 … Xn). Output Y is a functionof Xs.

Six Sigma is all about finding the critical Xs whichaffect the Y or the output of a process. Traditionallyquality professionals have looked at Ys and have triedto work around with it. Six Sigma gives a structure tounfurl the Xs which result in Y. Xs are also called theKey Process Input Variables while Ys are called KeyProcess Output Variables.


In Six Sigma, we discover both the controllable anduncontrollable Xs which affect the process output Y.However, the focus is not on all the process variables(or Xs) but to use various tools to identify the few criticalXs and work with them.

To elucidate the concept of Xs, let us look at themanufacturing process of ice creams.

The diagram below mentions the various Xs whichaffect the Ys.

DEBASHIS SARKAR 23

Mapping the process during a Six Sigma projecthelps to identify not only the flow of events in theprocess but also the inputs (Xs) and outputs (Ys) ineach step. So when a Six Sigma project is done, it isimperative not only to capture the Ys but also thecorresponding Ys.

When one commences with a Six Sigma project thereare many input variables. But as the project progressesthrough the steps, it is found that only few of thevariables contribute to the variation in Y. At thebeginning of a process, it is a must to list all possibleXs. But the rigour of Six Sigma is such that by the endof the project only a few critical Xs get prioritized whichare then worked with. This is aptly explained by thediagram below:

MEASURE # 30 – 50 inputsANALYZE # 8 – 12 Xs

IMPROVE # 6 – 8 XsCONTROL # 3 – 6 Xs

Six Sigma Takeaway

Most variations in Ys (outputs) are affected byinitial few Xs.


Lesson 8

Build solid infrastructure pillars to support SixSigma in the organization

An effective Six Sigma deployment requires thefollowing pillars which keep the wheels of a Six Sigmamoving. It comprises the following:

A. Operational pillars

These refer to the paraphernalia required for effectiveexecution of all Six Sigma projects.

t A.1. Roles of People Involved in Six Sigma—Thisrefers to the roles that people have to play inSix Sigma improvement teams. This has beendiscussed in detail in another Lesson.

t A.2. Project tracking and monitoring Implementa-tion—This is the mechanism to track andmonitor projects under execution.

DEBASHIS SARKAR 25

t A.3. Review Architecture—This is the review ofprojects that are underway both for timelineand Six Sigma rigour.

t A.4. Helpdesk—Six Sigma on Call—As teamscommence with projects it makes great senseto institute a help-desk which takes care of allqueries of Six Sigma teams. This helpdeskshould be manned by Master Black Belts whohave prior proficiency in this field.

t A.5. Rewards and Recognition—Rewards andRecognition should bolster Six Sigma deploy-ment by recognizing achievements and rein-forcement of behaviours that drive Six Sigma.

t A.6. Framework for Effective Meetings—Asmeetings are an integral part of all projects itis necessary to put in place a framework foreffective meetings. All project leaders shouldbe trained on running effective meetings.

t A.7. Benefits Tracking—This refers to putting inplace a mechanism to track benefits accruedfrom each project. What is required is acorporate guideline on Six Sigma benefitscalculations.

B. Fundamental pillars

These are the essentials for driving Six Sigma as anorganizational initiative.

t B.1. Communication—A organization-widecommunication strategy should support Six


Sigma deployment to ensure it seeps deep andwide within an organization.

t B.2. Senior Management Review—This refers tothe CEO’s review with business leaders orbusiness heads or functional heads or a CEO’sdirect reportee; to ascertain progress. This is togauge the Six Sigma penetration and improve-ments within a business or functional unit.

t B.3. Nurture Project Sources—It is important thatyour organization should have a continuedsource of potential projects. This could beachieved by project selection workshops,brainstorming, suggestion schemes, andimprovement ideas received in the KnowledgeManagement page.

t B.4. Leverage the Learning through a KnowledgeManagement Platform—The learnings of eachproject should be shared with the rest of themembers in the company.

t B.5. Capability Building through BB/GB program-mes—This refers to the ongoing initiative toincrease the breed of Black Belt and Green Beltwithin the organization.

t B.6. Create a Process Council—This is requiredto identify processes that are taken up forimprovement. This council comprises operatingmanagers from various functions within abusiness.

t B.7. Process Audits—This is required to ascertainthe health of the improvements and to see ifthey have sustained after project completion.

t B.8. Dashboards—The organization shouldregularly get an overview on the status of

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various projects through dashboards. It may bea good idea to appoint a Dashboard Managerfor this purpose.

t B.9. Create a Quality Council—This is the coun-cil of senior management who oversee theimplementation of Six Sigma. The responsibil-ity of the success of Six Sigma depends on thisgroup.

Without the above pillars, setting out on a Six Sigmajourney may not be effective. It is important that a highpowered team led by an MBB or Head–Six Sigma ismade responsible for infrastructure creation. Theprogress of pillar creation is reviewed on a regular basisby the Quality Council. If the foundation of the pillarsare weak, Six Sigma implementation will get derailed.

Six Sigma Takeaway

The infrastructural pillars are the foundation onwhich Six Sigma implementation is set on sail.


Lesson 9

Appoint a marketing manager for selling andmarketing Six Sigma as a product to theemployees of the company

It may sound quite radical that a marketing managerfor an improvement initiative as Six Sigma is beingproposed! To some this may appear strange asmarketing managers are required for selling productsto consumers and not for selling Six Sigma to anorganisation. It may be further suggested that if theCEO is committed and drives Six Sigma; things shallhappen and a marketing resource should not besquandered.

Although there is no substitute for the CEO’scommitment in an organization’s Six Sigma journey,the marketing manager is needed for a differentobjective. While the CEO sets the vision for Six Sigmaimplementation, the marketing manager sells theconcept of Six Sigma to employees. He will do so likeselling a product to consumer. The marketing wouldtake the message of Six Sigma across the firm.

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By CEO’s mandation Six Sigma projects will happenbut for Six Sigma to become an integral part oforganizational DNA, it should be moved by the heartsand conviction of people. This shall happen whensomeone sells and continuously communicates thebenefits of Six Sigma to the organization. The marketingmanager of Six Sigma should be mandated to sell thebrand Six Sigma to all within the firm.

You may say that the Head—Quality or Head—SixSigma, can take up this position. Yes, it can be done.But the problem is that typically, the Head—Qualityor Head—Six Sigma is not a person who has therequired marketing skills. What I am suggesting is aperson from the marketing or selling function, who hasprior marketing/selling experience in selling products/services. This is because he/she will have the requiredskills of marketing a product (Six Sigma here) which aquality/Six Sigma professional may not possess. Yes,for the long-term success of Six Sigma, it has to be soldas any other goods are sold to the customers.

So what should you do after picking up a brightperson from the marketing or sales function is to trainhim or her on Six Sigma. The best thing would be tomake the individual undergo a Black Belt or Green Belttraining programme, ensure that he or she completes aprojects and gets certified as a Green Belt or a BlackBelt. This is required because if we want the person tosell quality, he or she should know what it is all aboutand what it takes for execution. The job essentiallyencompasses selling and institutionalizing Six Sigmaacross the Six Sigma. This person could report to theHead—Quality/Head—Six Sigma and be entrustedwith the following headline responsibilities:


l Establish and communicate the key distinctivebenefits of Six Sigma deployment.

l Create presentation and promotional materialsfor Six Sigma.

l Design various kinds of publicity programmesto promote the cause of Six Sigma in thecompany.

l Do personal selling on what is Six Sigma andhow it can be a lever for business improvement.

l Use the telephone, e mail, internet and knowl-edge management platform; to communicatedirectly with employees.

l Identify influential individuals within employ-ees (such as the union leader) and devote extratime with them on the power of Six Sigma.

l Work towards developing word-of-mouthreferral channels so that people look forwardto get associated with Six Sigma projects.

l Create awareness on Six Sigma among employ-ees through ‘Six Sigma Awareness Workshops’which should be made compulsory for eachemployee.

l Share success stories of Six Sigma deploymentwithin and outside the company.

The following is a list of common communicationplatform that an organization can use for Six Sigmadeployment:

F Brochures,

F Booklets,

F Posters,

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F Leaflets,

F Billboards,

F Audio-visual material,

F Videotapes,

F Contests,

F Quizzes,

F Exhibits,

F Seminars,

F Publications,

F Events,

F Presentations,

F Six Sigma query meetings.

Six Sigma Takeaway

To make the communication of your Six Sigmamarketing manager effective, ensure that theindividual qualifies as a Black Belt or Green Beltbefore taking up this assignment. Remember,communication is going to be considered effectivewhere the source is believed to have expertise.


Lesson 10

The quality council should drive Six Sigmaimplementation across the organization

Set up a Quality Council that comprises the ChiefExecutive and the top management team who canoversee Six Sigma implementation across the organ-ization. The quality council should meet on a regularbasis to guide, review and plan for Six Sigma implemen-tation. Also called the Leadership Council or SixSteering Committee, the main responsibilities of thisgroup are to define and prioritize the quality improve-ment objectives and to maintain the correct rate ofimplementation. The following is a list of roles whichshould be played by a Quality Council in a Six Sigmajourney:

l Establish a vision and script an overall SixSigma implementation roadmap.

l Select specific processes for improvement.l Remove barriers to implementation.l Ascertain and address cultural issues in imple-

mentation.

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l Ensure that the best people are selected for SixSigma projects.

l Define Six Sigma objectives for the entireorganization which includes people at thesenior level.

l Ensure that improvements are quantified anddetermine how they impact bottom-line.

l Support and commit the assignment ofresources.

l Assess the performance of Six Sigma projectsto ensure its continuing suitability and effective-ness in ensuring customer satisfaction.

l Review progress of current projects and thefindings of internal audits of closed projects.

l Review quality costs and where Six Sigma canbe used for betterment.

l Select process owners for core processes.l Ensure measurements are established for all

completed projects.l Demand solid results.l Resolve and remove escalations and conflicts.l Ensure that the Six Sigma capability of the entire

organization increases.l Ensure that the basic infrastructure is in place

before Six Sigma implementation.l Involve suppliers in Six Sigma implementation

and collaborate with them.l Show constancy of purpose. If you promise

something, then deliver it.l All members of the Quality Council must walk

the talk, and maintain the vision, drive andpassion.


If your organization has multiple business units, itwould be a good idea to have a Quality Councils bothat the apex level of the company and within eachbusiness unit. Please do not undermine the role of theQuality Council in Six Sigma implementation. Theyplay a critical role in identifying the right projects andascertaining the best ways to roll out the initiative tomaximize impact. In certain organizations the QualityCouncil also functions as a Process Council which hasbeen discussed in another Lesson.

Six Sigma Takeaway

The Quality Council should work towardscreating a culture that nurtures Six Sigmaimplementation.

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Lesson 11

Bolster Six Sigma projects with a solid ReviewFramework

Reviews are an integral part of Six Sigma imple-mentation. The main objective of reviews is to checkachievement against plan, check timelines and decideactions to meet gaps. Other objectives include ensuringthat earlier committed actions have been carried outand have delivered results. It is an opportunity tounderstand and support cross-functional activity in SixSigma projects and to unfurl barriers to implementation.Reviews also play a critical role in Six Sigma ProjectManagement.

The following are the types of reviews commonlyused during Six Sigma projects:

l Regular Reviews (Timeline Reviews)

These reviews are to be done by the Champion withthe objective of ascertaining adherence to timelines andbarriers to implementation. These reviews should not


take more than 15 minutes and should be centeredaround determining the progress against a Gantt chartthat shows progress. These reviews should be extremelyefficient and discussed in minimal detail. In certainorganizations these are referred to as stand-upmeetings, stressing that they serve as updates and areshort in duration. These reviews typically happen on aweekly basis.

l Tollgate Reviews

These reviews are targeted in ascertaining the DMAICrigour being followed in Six Sigma projects. The MasterBlack Belts typically chain these reviews. In case anorganization has commenced its Six Sigma journey, itmay hire external consultants (read: Six Sigma experts)who facilitate these reviews. The review is also anopportunity for the Black Belts/Green Belts to addresstheir queries on statistical tools and concepts. It wouldbe a great idea if the Champion is also present in thesemeetings. The Black Belt or Green Belt should not beallowed to continue onto the next phase until approvalfor the same has been received from the Master BlackBelt and the Champion. These reviews ensure that theSix Sigma methodology is followed and the appropriatetechnical tool is used. In technical reviews there is a setof process questions after each step which need to beaddressed. The Tollgates are an opportunity forManagers, Champions and Master Black Belts to listento the teams, ask questions to ensure that the team isfocused on strategic objectives and guide the team ontools and techniques. Tollgate Reviews are also calledTechnical Reviews.

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The above are typically used during projectexecution. However, the status of improvement issubsequently reviewed during monthly quality reviewsheld on a regular basis. In these reviews the trends ofkey process metrics and audit findings for completedprojects are reviewed. Remember, these reviews are notTollgate Reviews or Timeline Reviews, as discussedabove. These are quality reviews that are held toascertain the state of quality in an organization and SixSigma projects are a part of it. Other agenda items ofsuch reviews are Customer Complaints, QualityManagement System Compliances, Audit Findings etc.

Six Sigma Takeaway

Six Sigma projects should not be allowed tocontinue to the next phase until Tollgate Reviewshave been completed.


Lesson 12

Becoming a Master Black Belt requires apractical demonstration of adeptness incoaching, teaching, facilitation, consulting andmentoring

The other day I was talking to the Deputy ManagingDirector of a manufacturing organization. He men-tioned that his organization had commenced with SixSigma implementation. Further he shared that they hadappointed their Director-Operations as a Master BlackBelt (MBB) who would oversee the implementation.While there was nothing wrong with the Director-Operations being an MBB, what appeared queer washow could a person who did not have prior experiencein Six Sigma become an MBB. Also, this reflected thatthe organization had not understood the roles andresponsibilities of a Master Black Belt.

So who are these Master Black Belts?They are super Black Belts whose depth with Six

Sigma methodology and strong leadership skills makethem Master Black Belts. They are technical specialists

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who train, coach, facilitate, consult and mentor otherBlack Belts. They are one of the prime drivers of the SixSigma implementation and coordinate mega projectswhich run across the functions in an organization. Sowhat are the key roles of a Master Black Belt?

l Create infrastructure to facilitate Six Sigmadeployment across the organization.

l Help business leaders and Champions todevelop a list of projects in their respectivebusiness groups.

l Coach, train and mentor Black Belts on theirprojects, tools and conflict resolution. They playa stellar rule in helping BBs to interpret results.

l Together with the dashboard manager, MBBshelp in setting up a measurement system onprojects and organizational performancemeasures.

l They coordinate mega projects and facilitate thetechnical review of all Black Belt projects.

l The MBBs run a project management infra-structure to monitor the progress of Six Sigmaprojects.

l Do training and workshops for Champions,Black Belts and Green Belts.

l Work closely with Champions on deploymenttactics.

l Communicate the firm’s strategic potential fromSix Sigma deployment to the top management.

The selection of a Master Black Belt commences withthe Black Belt Training programme and continues


through the execution of the subsequent projects. Donot be hasty in selecting MBBs. Please ascertain if he/she has the relevant skills and aptitude. Also, determineif his/her career move as an MBB is aligned to his/herlong-term career goals.

So what does it require to become a Master BlackBelt? It has been discussed in an earlier lesson but letme re-emphasize that a certification as an MBB requires20 successful projects, about half of which are as a BlackBelt and half while mentoring BBs. They should haveachieved mastery on advanced statistical tools such asDesign of Experiments, Quality Function Deployment,Failure Mode Effect Analysis, Analysis of Variance andso on. They should have excellent communication,facilitation and inter-personal skills; and shouldmanifest the ability to work across functionalboundaries. They should have experience in trainingBlack Belts and should have conducted workshops forthem. After selection of a candidate for the position ofa MBB, he/she has to undergo a two weeks programmewhich prepares candidates for the role of a MBB.

Remember, a MBB should not only possess technicalskills but should also be a good leader to make SixSigma an integral part of the organizational fabric. Sodo not undermine the leadership skills while focusingon technical abilities.

When an organization sets out on a Six Sigmaimplementation it may not have a Master Black Belt soit is recommended that a Six Sigma expert or aconsultant is hired.

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Six Sigma Takeaway

Master Black Belts should work with Championsto increase the DNA of Six Sigma experts.


Lesson 13

When hiring a Consultant for Six Sigmadeployment, ensure that all laid down criteriaare met

When Six Sigma is new in your organization, hire aconsultant who will assist in the roadmap, trainemployees, help in project selection, advise ondeployment infrastructure and partner implementation.

As with all consultant selection, be extremely carefuland do a thorough homework. I would recommend thatthere is a laid down criteria which is used whenever aSix Sigma consultant has to be hired. For a Six Sigmaconsultant you should ensure that the quality councilcomprising the company’s top management team isinvolved in the selection. The following is a list of areasthat you should look at whenever you go out to hire aconsultant:

o Reputation/References: Ask for references andenquire on the companies he/she has asked for.Validate the claims by calling up a few companies

DEBASHIS SARKAR 43

that he/she has consulted for. The sample shouldrepresent a cross section of the industry. You wouldalso require to check if there are any specific industrythat the individual specializes in.

o Credentials: Ascertain credentials such as educa-tional achievements, association memberships, orprofessional certifications. Is the person familiar withthe processes that operate in your industry and hashe or she been involved with quality improvementin your kind of industry. Does the consultant possessthe desired listening and observation skills. This isbecause a consultant needs to gather informationthrough listening and observing.

o Knowledge of Six Sigma Fundamentals: This is avery important criteria in the process of selecting aconsultant for Six Sigma. Ascertain the knowledgepossessed by the consultants on Six Sigma tools andtechniques. Specifically look for information on howthey have used these tools in Six Sigma projects inother organizations. Probe on their knowledge ofadvanced tools as Design of Experiments, MultipleEnvironment Over Stress Testing, Quality FunctionDeployment, Benchmarking, Value Engineering,Mistake Proofing, Control Plans, MultivariateAnalysis etc. Also, find out the number of MasterBlack Belts and Black Belts in the group who havehad real life experience beyond consulting as teamleaders on Six Sigma projects. If the consultants arealso going to act as trainers, what is the content oftheir book of knowledge? What are the various topicscovered and how are the corresponding simulatedexercises? Six Sigma is also about managing change.


Please look into their past exposure in bringing aboutchange.

Do not hire a consultant who is only a statisticianand not a Six Sigma practitioner.

o Package: To fully evaluate a consultant’s capabilitiesyou would require an assessment of implementationstrategy. This should include methodology and atime plan for detailed implementation of the projectfor which he or she has to be hired, specifically theimplementation structure and template that has tobe followed. Also, it must be decided whether theconsultant is just a trainer or someone who is goingto partner with all elements of Six Sigma deployment.

o Flexibility: Does the consultant have a repertoire ofproviding flexibility, which should include the abilityto change the plan without losing sight of theultimate objective. He or she should be able tocomplete tasks and achieve milestones withoutdisrupting the normal course of the business andshould blend in with the employees without affectingtheir work.

o Costs: Establish how many on-site days will berequired to complete individual tasks. What costswould be incurred and what is the expected ROI?

Do not hasten while deciding on a consultant forSix Sigma. If it means spending a few more days anda little more money, go for the consultant who meetsall the above criteria. Remember, the consultants aregoing to create the foundation on which the build-ing of Six Sigma is going to be built. So do not com-promise. Go for the best.

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Six Sigma Takeaway

Consultant selection is like finding a wife foryourself, be extremely meticulous and careful inits selection.


Lesson 14

Beware of the Consultant who gives a Proposalto improve an Organizational Business Processall by itself, without the involvement ofemployees

Many companies in India are hiring consultants to helpthem in their Six Sigma journey. While consultants arerequired, I have discomfort with consultants who aretrying to make the quick buck due to the ignorance ofthe industry. Companies such as Motorola and GE,while implementing Six Sigma, also hired consultants.But they went for the right people who could steer theentire organization towards institutionalizing SixSigma. Quality stalwarts such as Mike Harry and KekiBothe were associated with their implementation. Theresults of their contributions are before us and henceSix Sigma is an integral part of the organizational fabric.

It is not that India does not have Six Sigma expertsin our country. But companies are hiring Six Sigmapreachers who may talk elaborately but lack depth.Organizations get swayed by the gift of the gab and

DEBASHIS SARKAR 47

laptops, without probing deep on their previous work.I am also amazed to see that consultants who wereearlier preaching ISO and then graduated to TQM, arenow evangelizing Six Sigma. My advice to all organ-izations is to look at the credential of the consultantsbefore hiring them. I know of a consultancy firm, whichdeputes fresh business graduates into implementing SixSigma projects. The client organizations are hardlyaware of this or are ignorant of the fact that imple-mentation of Six Sigma requires specific skill sets. Beforehiring a Six Sigma consultant, a referral check withorganizations has to be done, to validate the consultant’sclaim. Find out if they have helped companies toeradicate chronic problems or how many projects theyhave worked on, which facilitate the achievementof strategic objectives. Ascertain the consultant’sfamiliarity with all advanced Six Sigma tools. This isimportant to know because some problems may requireadvanced statistical tools such as Design of Experiments(DOE), where simple problem-solving tools may notbe of help. Be careful of consultants who try to sell the‘Simple Problem Solving’ methodology under the garbof Six Sigma or consultants who have tied up with somenon-descript foreign Six Sigma consultants. The criteriathat you should follow for consultant selection has beendiscussed in detail in an earlier lesson.

A few companies have set out on a Six Sigma journeyby allowing consultants to improve their processes.Participation of employees is either cosmetic or is absentduring the improvement process. As a result, theimprovement does happen but rolls back to the originalstate after the project is over. Please avoid suchconsultants who run Six Sigma projects without the


involvement of employees. Instead of building internalcapability, such consultants are silently lettingorganizations to be parasitic to external consultants. Toinstitutionalize Six Sigma in your company, useconsultants as facilitators and not as people who arerunning projects.

Six Sigma Takeaway

The consultants should act as facilitators and notas people who are running Six Sigma projects.

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Lesson 15

Continuously evaluate the effectiveness of SixSigma teams

As teams set out on Six Sigma projects ascertain if theyare effective enough to deliver the desired results. Youmay have the brightest of people on the projects but iftheir energies are not channelized well, they will soonget squandered without delivering the required results.Just knowing the best tools is not adequate, what isrequired is a team which can keep the engine of theproject moving.

Proactively ascertain the effectiveness of Six Sigmateams. What are the traits of an effective team for SixSigma project?

l The team has clearly defined objectives and amission.

l The team’s objective has a clear alignment withthe organizational strategy of the company.


l All members of the team are aware of theproblem being addressed, project goal andreason why the project is being done.

l The teams have a Champion who regularlyreviews progress.

l All team members have received training onbasics of Six Sigma and team dynamics.

l There is open communication among all teammembers.

l Members take critique and feedback positively.l The team members are aware of the specific

roles that each one is supposed to play.l Decisions are not based on gut and hunches but

on data.l Team members are aware of suppliers, inputs,

customers and outputs of the process underimprovement.

l Team members are empowered and have theauthority to take decisions.

l The team achieves all the pre-decided timelines.l The team members spend adequate and

required time on the project.l Credit is given to contributions of all team

members.

Effective teams are required for successful Six Sigmadeployment. It is the responsibility of the managementto understand how to make teams effective. Themanagement has to keep the teams positively active toproduce desired results. Effective teams are only

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possible when there is unstained focus and lot of hardwork on the part of management.

Six Sigma Takeaway

If tools are the sails of a Six Sigma boat, the teamsare its engine.


Lesson 16

The composition of the Six Sigma project teamis critical to its success

Every Six Sigma team should have an effective leaderwho not only provides directions but also understandsthe team dynamics. The team leader should not onlypossess technical knowledge but also behavioural andleadership skills to actively engage the members of thegroup.

The Six Sigma improvement team should definitelycomprise the following members:

l SponsorHe or she is the person who proposes a project forexecution. They have the budgetary authority andpay for the expenses for a successful projectexecution. In some organizations the role of asponsor and champion can often merge.

l ChampionsThe champions are responsible for the success ofa Six Sigma project. His/her role has beendiscussed in detail in an earlier Lesson.

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l Six Sigma Project LeaderThis is the person who leads the Six Sigma project.They are typically Black Belt or Green Belts whoare adept in the methodology of improvement.

l Process OwnerHe or she is the person who owns the process fromthe beginning to the end. The person is responsiblefor holding and sustaining the gains from theproject execution. Process owners are assisted byprocess operators who work on the process. Coreor key processes could even cut across functionalboundaries and departments. Depending on thelevel of management, the ownership of processesshall vary. Core processes are typically owned bysenior managers while sub process ownershipcould rest with the middle management or juniormanagement.

l Process OperatorThey are the people who work on the process andare responsible for ensuring that process para-meters are maintained as desired. Processoperators play a major role in ensuring that thegains are sustained. The effective training ofoperators is a must, in order to ensure thatoperators manage the process as per the processcontrol plan. The participation of critical operatorsis a must in the Six Sigma project so that they canown the improvements.

l Process ExpertHe or she is a person who has an expertise on theprocess. The person may or may not be a part of


process, but is typically a subject matter expertwho brings in all the theoretical and practicalinsights of a process. He or she is the knowledgebank among the Six Sigma team members.

l Information Technology (IT) expertHe or she is a person who gives the technologysupport to the project team. In quite a fewoccasions, improvements require informationtechnology solution and this is where the IT expertplays the role. His or her involvement should befrom the beginning of the project to ensure thatthe right IT solution is effectively designed.

l Representative from the CFO’s officeThis is the person from the office of the ChiefFinancial Officer who guides and ascertains thebenefits of an improvement project. The role ofthe CFO’s office in the improvement project hasbeen delved in detail in another lesson.

The above team members are required for theeffective execution of the project. For all group levelexercises such as brainstorming, FMEA (Failure ModeEffect Analysis), Process Mapping etc., all membersmust participate. Remember, the larger the participationof the team members in Six Sigma project, the easier isthe implementation. I have observed in a few organ-izations that Six Sigma projects typically remain thebaby of the Six Sigma project leader (i.e. Black Belt orGreen Belt) and there is cosmetic participation of theteams. Remember, this is a recipe for disaster.

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Six Sigma Takeaway

The project leaders should never attempt to doeverything himself or herself.


Lesson 17

During the First Year of Six Sigma imple-mentation, focus of deployment should be onValue and not Volume

A well known organization set out on a journey of SixSigma deployment with a lot of vigour and fanfare.However it was found that after two year’s deployment,the desired impact could be felt for the investmentsmade. This organization had a strength of 1000, of which100 people had been trained as Black Belts or GreenBelts, all of whom executed projects during the firstyear. Yes, 10 per cent of the organization was workingon projects in the first year itself. All these projects hadbeen completed after the CEO had mandated that atleast 100 projects be completed within the first year ofdeployment. The head of the Six Sigma in the organ-ization mentioned that the company had investedaround Rs 3 crores on the initiative but had receivedno tangible benefit, save for the hype and hoopla thatSix Sigma was being implemented. The senior manage-ment as well as the CEO were turning skeptical about

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Six Sigma being another flavour of the month from theden of a quality practitioner.

The above is an example of an organization wherethe focus during the first year of implementation hasbeen on volume (number of projects) instead of thevalue (benefits/impacts they can deliver). This is a mis-take which organizations often commit. Often, in theenthusiasm to reach a threshold, organizations com-mit too many projects in the first year of deployment.

The first year of deployment is extremely critical forSix Sigma’s success. This is the time when the tone ofSix Sigma deployment is set in the organization. Ifpeople do not taste success after the first or second yearof deployment, the initiative shall get completelythrown off. Organizations should consciously treat theprojects in the first year as a pilot. It is extremelyimportant that only a few projects are taken up andthat the focus is on the impact of the projects and noton the number of projects. All efforts should be gearedto make them successful. These projects cannot beanything but only those which are important for theorganization. Ensure that the projects are selected bythe Quality Council, the membership of whichcomprises the CEO and senior management. Take uponly end-to-end projects (discussed later in anotherlesson), the impact of which can be felt by the customeras well as the stakeholders. The recommendation is totake up a mix of projects on efficiencies as well ascustomers. The temptation would be to take up onlyefficiency projects as we would like to show quick rupeesavings. But it is important that we take up projectswhich also lead to long term benefits such as revenue


growth, customer loyalty and so on. This is required inorder to gain acceptability within the company that SixSigma can also be used for things other than costsavings/efficiency improvement.

Six Sigma Takeaway

During the first year of Six Sigma deployment,take up a few but meaningful and high impactprojects.

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Lesson 18

Appoint a Dashboard Manager who is entrustedwith the responsibility of tracking process metrics

As the number of projects increases in an organization,it is recommended that a position of a dashboardmanager is created to track and monitor projects whichhave been completed. This is important because if themetrics of the completed projects are not looked at, theprocesses could revert to the original state. This persontypically should report to the CEO or his/her directreportee. This is to ensure that the top management isaware of the status of process performances that hadbeen taken up for improvement.

So, what are these dashboards? They are effectiveways of communicating the metrics of processes whichhave been taken up for improvement using the SixSigma methodology. Dashboards use graphs, charts,pictures or other visual techniques to communicate keyprocess metrics and provide a uniform template foralerting managers to critical issues pertaining to SixSigma implementation.


The dashboard manager should alert senior manage-ment and champions of exceptional circumstances in atimely manner. He/she should liaise with the processowners to ensure that dashboards are prepared withinstipulated timelines and that the information is usedfor arriving at root causes. The individual shouldascertain the impact of deviations on the businessobjectives and larger goals of the organization; and keepthe management apprised of the same. The dashboardmanager also works with the organization to devise apolicy on what data can be made freely accessible andwhat should be restricted.

The dashboard manager could commence by firstimplementing the dashboards manually and thengraduate to partial automation. But his/her ultimategoal should be digitization, which enables automationof the processes for data entry, analysis and reporting.This will not only increase efficiency but shall alsoreduce errors. Digital dashboards are also calledcockpits, and allow timely access of Six Sigma metricsto key stakeholders.

The dashboard manager should have an informationtechnology background and should have a liking fordata. A word of caution here is that setting up digitalcockpits are often not easy. This is because many of theprocesses may be manual and automating them mayrequire enormous resources. The other challenges arethat often data systems do not talk to each other andthere is a lack of standardization of measurementsystem across the company.

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Six Sigma Takeaway

The dashboard manager should create a roadmapfor dashboard implementation. He shouldcommence with manual data presentation, moveto partial automation and finally target fullautomation.


Lesson 19

Six Sigma deployment should precede with theidentification of Core Business Processes

Quite often, organizations are not aware of the corebusiness processes, mission-critical processes, keybusiness process or macro processes. It is thus essentialthat before commencing on a Six Sigma journey youdecipher the core processes which support the missionof the company. Organizations convert their strategiesto action through processes. Businesses are drawnaround functions but it is the processes which deliverthe business goals. Understanding the core processesare critical to business success.

So what are the attributes of core processes?

l They are the processes that help in achievingthe business goals, fulfillment of the missionand the attainment of its vision.

l They are the processes that are required fororganizational success and is supported by awhole lot of sub-processes.

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l They are those processes that provide competi-tive advantage.

l They cut across functions and involve numer-ous departments.

One of the methods of ascertaining the core processesis by a tree diagram where the organizational goals suchas market share, increased sales, improved customersatisfaction etc. are documented and then the processesfor achieving these goals are linked.

Potential Core Processes Sub-Processes

Deciding the core processes requires the top manage-ment’s involvement. Typically organizations have 3–10 core business processes. The following are examplesof the core processes of two companies which I havestudied very closely. For the sake of confidentiality, thenames have not been mentioned. However, you willget an idea on what core processes are all about.

Core Processes of Two Companies

Company ABC Company XYZ

Corporate Governance DistributionAfter Sales Service Supply ChainDesign and Development Research and DevelopmentCustomer Delivery Process MarketingManufacturing ManufacturingSales and MarketingTechnology

Excellence in business can be achieved when thefocus is on improving the core processes and there is a


continuous review on their effectiveness from thecustomers’ and shareholders’ point of view. You shouldleverage the power of Six Sigma by working on theseprocesses. Identification of core processes help toredeploy improvement efforts that were previouslylaunched against relatively trivial processes.

Six Sigma Takeaway

Before deploying Six Sigma identify the coreprocesses in your organization.

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Lesson 20

Do not take up Improvement Projects in thecafeteria during the early days of Six Sigmajourney

I am aware of a company which during its early daysof implementation took up a project in the cafeteria andparking. There was a major increase in Sigma levelsbut the impact was not felt much. There was no flaw inthe methodology but the organization took up a projectwhich did not have strategic importance. It is impera-tive that we begin with improving the processes thatare linked to the strategy. Randomly selected processesfor improvement may not have strategic importanceand you will only end up squandering valuableresources. It is not as though projects should not betaken up in a canteen but it is an issue of making choicesabout which processes to improve and likely trade-offsin resources allocation. Trivial processes such as thatof the cafeteria should be taken up when sufficientprogress has been made towards improving the core


business processes. Following are some of the processeswhich should be taken up for improvement:

l Processes that support achievement strategicand business goals. Target the core processeswhich are directly linked to the strategy of thecompany.

l Processes that have senior management buy-in. Do not take up processes which are not inthe radar of senior executives.

l Process which impact the customers are an idealchoice for Six Sigma projects. It would be a goodidea to inventorize all processes that impactcustomer satisfaction and dissatisfaction.Specifically look for processes which are oftentouched by customers.

l Processes which are cost intensive are also agood choice. This means that a 25 per centimprovement in a process that consumesresources worth Rs 10 crore would mean asaving of Rs 2.5 crore. However, this wouldrequire that the organization should havedetailed process costs which many organiza-tions do not have. Leveraging the activity-based-costing to ascertain the true process costis recommended.

l Processes in which your organization is weakvis-à-vis competition. However, the challengehere would be to get the real voice of theprocesses of the competitors. A good idea couldbe to decipher this by talking to the competitor’scustomers.

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l Processes that have a clearly defined processowner. It does not make sense to take upprocesses which do not have an owner as therewill be nobody to implement the solutions.

l Processes which consume large amounts ofmaterial are good candidates for improvement.This is because reduction in wastes would meanimproving the efficiency and effectiveness ofthe process.

It is the onus on the senior management and SixSigma champions to isolate the trivial processes fromvital processes which have significant impact onbusiness.

Six Sigma Takeaway

Do not use Six Sigma to improve processes whichare in transition.


Lesson 21

Black Belts should not carry out small improve-ment projects (read: Green Belt projects) in thegarb of those being Black Belt projects

A well known consumer goods company had startedits Six Sigma journey and had spent a lot of money intraining people as Black Belts and Green Belts.However, on a visit to one of their manufacturing unitsI found a Black Belt working on improving the processfor raising purchase orders. On probing I was told thatthe turn-around time for generating purchase orderswas quite high and as a result the supplies to the unitdid not often happen on time. This was a clear case ofwasting a valuable resource as a Black Belt to work ontrivial process improvement projects. This is whathappens when an organization does not have cleardefinitions for a Black Belt and a Green Belt Project. Itis imperative that these definitions are explicit and clearso that the resources in Black Belts and Green Belts aredeployed judiciously.

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A Black Belt project looks at improving core businessprocesses which help at achieving a business goal. Theseare typically cross functional, cross regional and crossdepartmental projects which are run by Black Belts.These projects should yield a significant return to theorganization and should be completed within six to ninemonths. These projects could have any of the objectivessuch as improving customer satisfaction, optimizing thesupply chain, reduction of defects, reduction of cycletime, improvement of first-pass yield, shortening of leadtime, reduction of variability, optimization of productperformance, optimization of process performance,cutting costs, reduction of the cost of quality, improve-ment delivery performance and so on.

A Green Belt project looks at improving sub-processes of a core business process. These are withindepartments and are seldom across functions andregions. Green Belts are typically part time Six Sigmaresources who take up improvements together withregular work. The objectives could be same as the BlackBelt projects but the scale and scope is much smaller.

Before creating the cadre of Black Belts and GreenBelts, clearly define what comprises a Black Belt andGreen Belt project.

Six Sigma Takeaway

An organization should clearly define whatconstitutes a Black Belt and Green Belt project.


Lesson 22

The project charter is a tool to manage, controland approve Six Sigma projects

The project charter is the first step of a Six Sigma project.It is a document that lays down the fundamentals onwhich the project is run. The charter manages, controlsand approves the project that is being taken up forimprovement. It is a living document that gives anoverview of the project and evolves as it progresses.The charter has to be scripted by the Black Belt or theGreen Belt with the help of the champion or sponsor.This is because there are quite a few elements to it thatties up with the larger picture of the business and, asthey have been part of the project selection exercise.

So what should a project charter contain? It comprisesthe following:

l Business case.l Problem statement.l Goal statement or specific objective desired.l Project scope and assumptions.

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l Elements out of scope.l Stakeholders impacted (departments, custo-

mers or vendors influenced by the project).l Risks.l Champion’s name.l Reporting manager of the person driving the

project.l Team Membership (black belts, green belts, sub-

ject matter expert, process owner, representa-tives of all silos thru’ which the process cutsacross, IT support).

l Project milestones.l Expected financial benefits.

An ideal project charter should be a one page (ormaximum two page) document. In many organizationsit is an integral part of the project tracking software. Acharter is like a contract that outlines the resources andsupport that the champion will provide in return forimprovement objectives. A charter also helps teams toavoid projects that have an overwhelming scope andensures projects are aligned to business needs.

Before closing on the charter do not forget to get thechampion’s sign off. By signing the charter thechampion commits to the project.

Six Sigma Takeaway

A project charter aids teams to avoid projects thatdo not make business sense.


Lesson 23

Scripting the problem statement right is vital toa Six Sigma project

Before beginning your Six Sigma project take all effortsto clearly define the problem statement. If the problemstatement is not scripted correctly it can lead to theproject going awry.

So what is a problem statement?A problem statement is a one or two-line description

of the symptoms arising from the pain to be addressed.It is a visible deficiency that is observed in a product,service or a process.

Once a pain or a concern has been identified, aproblem statement helps to understand it by givingflesh to it. It is a mental representation of what is wrong.It is a description of pain or what is not meeting thecustomers needs/expectations. It could also be a gapbetween the existing and desired state.

A problem statement should always be weaved interms that are visible, specific and measurable. It shouldbe of a size and complexity that is manageable.

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While scripting a problem statement never talk aboutsolutions or give a preconceived indication of what theroot cause might be.

Never affix blame in the problem statement and donot base it on a guess or an assumption. A problemstatement also bounds and frames the situation byspecifying what should or should not be included. Itshould include a manageable set of concerns. Do notinclude many problems into one problem statement.

A problem statement should answer the following:

l What has gone wrong?l Where has the problem occurred?l When did the problem occur?l What is the magnitude of the problem?l What has been the impact of the problem on

the business?

Here’s an example of a good problem statement:

Wrong

The rework in XYZ flexi machine lying in a biscuitpackaging section is at 25 per cent due to the voltagevariation.

Right

The rework in XYZ flexi machine lying in a biscuitpacking section is at an average of 25 per cent over thelast three months resulting in losses of Rs 132 lakhs tothe company.


Six Sigma Takeaway

The objective of the problem statement is thefollowing:(a) Clarifying why the process or system produces

the effect that one aims to change,(b) Measuring the performance of the process or

system that produces the effect,(c) Understanding the situation that led to the

problem.

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Lesson 24

An effective Six Sigma deployment requires aholistic mechanism to capture the voice of thecustomers

The following is a list of tools that can be used by yourorganization to capture the voice of customers whohave experienced the product or service of yourorganization:

l 1. Global Customer SurveysThese surveys are done with the objective to get afeedback of the customers on all issues pertainingto the relationship. It includes elements as productor/and quality, price, image and so on. Suchsurveys also find out what is important to thecustomers and what is trivial to them. Globalcustomer surveys can also be used to provide acompetitive profile when the same is administeredon competitors’ customers who are actually yourpotential customers. Global customer surveys aretypically comprehensive and encompass all


elements of a customer relationship. Designing aquestionnaire is critical to the success of a globalcustomer survey.l 2. Transactional SurveysTransaction surveys are administered immediatelyafter a customer has had an experience with theorganization’s product or service. The intent of thesurvey is to take feedback when experience is stillfresh in the mind of the consumer. The feedbackis typically sorted between 7 and 30 days after theevent has occurred. The timely and specificfeedback from customers can be a valuable enablerto process improvement. The methodologies usedfor transaction surveys are:

2a). Personal Interviews: These are face-to-faceinteractions between a company representativeand the customer.2b). Electronic Surveys: Commonly used thesedays, in this method the questionnaire is sentusing the electronic mail or the internet.2c). Mail Surveys: In this method the question-naire is sent by mail or fax. But the problemhere is that customers seldom respond.2d). Telephone Interview: Extremely popular, inthis method the feedback is taken over tele-phone and takes about 10–15 minutes. Intelephone interviews the questions should beshort and have relatively simple scales. Thebiggest advantage here is the speed with whichthe data can be gathered and is quite costeffective.

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l 3. New, Declining and Lost Customer SurveyThese surveys are used to determine why custo-mers select the firm, reduce their buying or leavethe firm. The objective is to assess the role servicequality and other issues that come into play incustomer patronage and loyalty.l 4. Focus Group InterviewsThis method involves direct questioning of a smallgroup (usually eight to twelve people). Questionsfocus on specific topics and can be used withcustomers, non-customers, or employee groups.l 5. Mystery ShoppingIn mystery shopping researchers become custo-mers to experience and evaluate the quality ofservice delivered.l 6. Customer Advisory PanelsThis involves a group of customers who arerecruited periodically to provide the firm withfeedback and advise on service performance andother issues. This involves capturing serviceexpectations and perceptions gathered in the field.l 7. Employee Field ReportsThis is a formal process for gathering, categorizingand distributing field employee intelligence aboutservice issues.

The objective of mentioning the above is to bring outthe point that for an effective voice of customer, onesingle method may not be effective. You may have tolook at a mix of the above as each tool has some utilityvalue which the other cannot provide. It has been seenthat a single listening system may be inadequate as it


gives a snapshot at a point in time from a particularangle. Greater insights are unfurled when a series ofsnapshots are taken from different lenses.

Six Sigma Takeaway

Always measure the customer’s feedback withrespect to customer’s expectations.

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Lesson 25

It is important to focus on the Right Measure toascertain the Efficacy of a Process

When you talk about measurements of a process,ascertain what is being measured in the process. Thisis important for the impact to be felt by the customer. Itmay be foolish to expect an efficiency measure to impactthe customer. What is required is to focus on the rightmeasure in an improvement project for the impact tobe felt.

In any process, measures could be any of thefollowing:

1. Process—Efficiency.2. Output—Effectiveness.3. Outcome—Customer Satisfaction.

This is also delineated by the following model:


But what are each of these measures:

l Efficiency Measures: The measures of efficiencyquantify the resources consumed in the processrelative to minimum possible levels. They aremeasured within the process. Efficiencies are notmeasured by examining the products after they areproduced or by surveying customers. Processmeasures represent parameters that directly controlthe integration of materials, methods, machines andthe environment within the process. While frequentlyunderstood and used in functioning operations,process measures are often absent from servicefunctions. It should be the endeavour of improve-ment teams in service companies to put processparameters in place.

Some examples of efficiency measures are costs,variability, cycle time and so on.

l Effectiveness Measures: The measures of processeffectiveness quantify the ability of a process todeliver a product or service according to their specifi-cations. These measures represent specific features,values and attributes of each product or service thatare expected by a customer. Like efficiency measureswhich are quantified relative to minimum theoreticallevels, effectiveness measures too are a relative term.Measures of process effectiveness are calculatedthrough a comparison of the process’s ability todeliver products and services (outputs) relative tocustomer requirements. They compare the outputcharacteristics actually delivered by the process tothe corresponding characteristics specified by thecustomer.

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l Outcome Measures: The measures of outcomesquantify the ability of outputs to satisfy the needs oftheir customers and represent the ultimate perfor-mance measure. Outcomes are beyond the directcontrol of the supplier and rely on the customer’sexpectations and actions.

Outcomes can be measured in two ways:

1. Product/Service effectiveness.Product/service effectiveness measure determineshow well the product or service (output) performsin the customer’s process.

2. Customer Satisfaction.3. Customer satisfaction determines how well each

product and service satisfies the needs andexpectations of the customer and recognizes thatsatisfaction is based on vague, idiosyncraticperceptions.

Remember, measures of outcome level can bedetermined only after the product has been deliveredor the service has been provided. For an impact to befelt by the customer, do not forget to focus on theoutcome measures.

Six Sigma Takeaway

By just targeting on efficiency measures, thecustomer may not feel the impact. Focus both oneffectiveness and efficiency measures.


Lesson 26

Together with Sigma levels keep an eye on theclass of the process

I have often seen that people are satisfied onceimprovements have been carried using Six Sigma. Theirrational is that the Sigma levels have improved so thingsare all hunky-dory. While there is nothing wrong inthis philosophy, it may be worthwhile to evaluate yourprocess with respect to the class in the Process-Gridgiven on the following page. Theoretically the goal ofall processes should be to become Class 1.

The Class of Process is identified by the followingtraits and characteristics:

Process Type Name

Class 6 Ill-definedClass 5 DefinedClass 4 RefinedClass 3 CapableClass 2 Efficient and EffectiveClass 1 Mature

DE

BA

SHIS SA

RK

AR

83 Process Grid


The decision whether to make a process Class 1 orClass 2 or Class 3 is a business call and is dependant oncustomer requirements. Remember, in certain pro-cesses; even a Class 3 process is fine while in others itis imperative that the process in Class1. There are hugecosts associated in taking processes from Class 3 to Class1. And this extra cost is to a need of the customer andhe or she is willing to pay for it.

Moving from Class 1 to Class 6 is not an easy task.The diagram gives an approximate time frame for aprocess to reach from Class 6 to Class 1. The durationmay change based on the complexity and current stateof the process.

Time Estimates for Class based Improvements

The time frames mentioned are pretty ambitious andwe should not try to shorten it by taking short cuts. As

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improvements happen it is important to give sufficienttime to allow the improvements to ingrain within theprocess.

Six Sigma Takeaway

Ascertaining the class of process shall give insightsinto the Sigma levels that should be achieved.


Lesson 27

While executing DMAIC projects do not takeshort cuts. Follow all the steps

Six Sigma project essentially comprises five steps whichhave been scripted below:

o Step 1—Define: This is the first step of Six Sigmamethodology and sets the foundation for carryingout an improvement project. It aims to clearlydefine the project with the champion whilescripting clear goals and specifying the processwith its customers and suppliers. The deliverablesof this step are:

l Project charter (comprising problem statement,goal statement, business case, primary qualitycharacteristics also called CTQ, project mile-stones, what is in its scope, what is out of itsscope, definition of a defect).

l Project boundaries.l High level process map.

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l Key process customers and suppliers.l Project plan.l Formation of a project’s team.l Type of resources that will be required.

o Step 2—Measure: The second step of a DMAICmethodology aims to gather data for establishingthe current state. The objective of this step is tofind out the extent of the problem and collect datato ascertain the few vital root causes. Thedeliverables of this step are:

l Identifying the Xs which affect the Y. (This isfrom the relationship Y= f (x), where Y is theoutcome of a process and Xs are the causes ofthe predictors of the process).

l Detailed process map.l Cause and effect diagram and a cause and effect

matrix.l Data collection plan.l Sampling strategy and sample size.l Measurement system including gauge repeat-

ability and reproducibility study.l Carrying out data collection to ensure there is

sufficient data for analysis.l Baselining the current performance levels or

Sigma levels.l Ascertaining yields.

o Step 3—Analyze: This step endeavours to unfurlthe potential sources of variation and reduce thenumber of process variables to be acted on in the


improvement phase. Some of the key deliverablesof this step are:

l Process capability.l Statistical analysis of the significance of X

variables with respect to Y, leverage tools asanalysis of variance (ANOVA), regressionanalysis, DOE.

l Detailed process map.l Statistically validated root causes of the

problem.l Prioritized areas for improvement.

o Step 4—Improve: In this phase the root causes ofthe problem should be removed and the solutionin the process need to be standardized. Theproposed solutions are confirmed in this stage andthe implementation strategy is worked out. Toensure that the solutions are effective, they aretried out in a prototype before commencing on afull-fledged improvement. Some of the keydeliverables of this step are:

l Potential solutions.l New process map.l Piloting solutions.l Incorporating the learnings of the pilot in the

solution.l Identification of resources that are needed for

implementation.l Revised tolerances of the modified process.l New capability analysis.

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o Step 5—Control: This step establishes the standardmeasures of performance to ensure that improve-ments remain sustained. Process control tools areused to ascertain ‘out of control’ states so that theycan be quickly detected and corrective actions putin place. Some of the deliverables of this stage are:

l Process control plan.l Mistake – proofing measures.l Control charts to monitor the process.l Formal documentation of the new method.l Data collection plan for ongoing process.

It is important to ensure that no steps in a DMAICproject are missed out. Also, regular reviews (TimelineReviews) should be done after every stage to ensurethe project progress is as per timelines. It is recom-mended that a checklist is made which lists all the stepsto ensure that nothing is missed out and to help duringreviews.

Six Sigma Takeaway

Six Sigma provides an excellent project manage-ment framework for improvement work.


Lesson 28

It is imperative that all Six Sigma projectsprovide Real Time Savings

It is imperative that all Six Sigma projects should pro-duce real savings. When a project charter is beingscripted, calculate the anticipated savings for theprojects. Unlike other quality methodologies, Six Sigmaprovides a platform for calculating the pay back fromthe improvements carried out. This is what differenti-ates the Six Sigma framework from other quality meth-ods which talked tall but often could not deliver realtime savings and benefits which the senior managementof an organization would like to see.

A Six Sigma deployment strategy should bedelineated in such a way that it can pay for itself fromthe second year of implementation. This is not difficultas all Six Sigma projects are linked to business objectivesso there is a high interest level; this drives theorganization to complete the project effectively and ontime. Let’s look at what happened to GE when it setout to implement Six Sigma. As reported in GE’s 1999

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Annual Report, it claimed a net benefit of more than $2 billion. At Honeywell, since Six Sigma was launchedin 1991 it had documented $ 2 billion savings from SixSigma implementation as reported in September 2001.(Honeywell developed a new generation proprietarysystem called Six Sigma Plus. This powerful qualitystrategy was developed through the 1999 merger of thetwo technology giants, Allied Signal and Honeywell,both long time leaders in applying modern method-ologies for meeting customer needs.)

When setting out on the deployment of Six Sigmaprojects create a right portfolio of projects yieldingshort-term and long-term payback. The recom-mendation here is to include more number of projectswhich result in short-term paybacks (These includeprojects on process efficiency, lowering operating costs,increasing yields etc.). This is required for the followingreasons: (a) to pay for the projects, (b) to ensure peopleperceive the benefits, taste success and gain confidenceto take up projects again, and (c) to help in quicker SixSigma institutionalization as it shall create advocatesof Six Sigma who have seen it delivering real savings.Long term payback projects could also be taken up butthe number should be few in the initial years. Thesewould include projects on customer satisfaction,employee motivation and so on.

Six Sigma projects could lead to either hard savingsor soft savings. Hard savings are those which directlyimpact the bottom-line. They typically result in costreduction or revenue enhancement. Also called bottom-line savings, hard savings can be deciphered by carryingout a financial analysis of year-to-year spending and


looking for ways to reduce spending. Revenueenhancement can be seen in projects which result inincrease of sales volumes. On the other hand, softsavings are difficult to quantify and include projectssuch as cash flow improvement through reduction ininventories, customer satisfaction through on timedelivery and so on.

Whether it is hard savings or soft savings, make itmandatory to quantify anticipated savings during theproject charter phase. Also, once the project gets over,the Chief Financial Officer’s (CFO) office should vet allsavings. This is to ensure that savings do not remain amirage to the top management but they can see it forthemselves. And who can validate this better than theCFO’s office.

Six Sigma Takeaway

All savings from Six Sigma projects should bevalidated by the CFO’s office.

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Lesson 29

Just by calculating the potential benefits in thebeginning and accrual benefits at the end of aproject, will not get the �wow� from either theCFD or his team members.

It has been seen that quite a few organizationsimplementing Six Sigma in India do not get their duecredit from the Chief Financial Officer’s (CFO) office,despite doing a successful project and having quantifiedthe benefits. The response of the CFO or his or her officeis often discounted and the effort is treated as anotherof those improvement projects. Sometimes they areappreciative of the efforts but the accolade of ‘wow’ ismissing.

What actually happens is that the project teammembers are so busy with their tools and techniquesthat they forget about the financials during the projectexecution except for the ritual of mentioning about thesavings during the charter phase and after the projectis over. Remember, Six Sigma is about driving value sojust carrying out the ritual of benefits calculation at the


beginning and end of project will not work. What canbe done differently so that the projects get the attentionof your colleagues in the finance function? Here are afew steps which can be followed to elicit desiredresponses.

l Six Sigma projects should be jointly owned bythe champion, the team leader (Black Belt) andthe CFO’s office.

l Six Sigma team must have a representative fromthe finance function.

l Benefits calculation done before the commence-ment of the project should be validated by theCFO’s office.

l Include a member from the CFO’s team as theproject team (involve him or her from the earlyphase itself).

l Clearly script the role of the member from thefinance function, which is to help the team tounfold and translate rupee savings at each step.

l Align with the finance organization to find outwhat is included under soft savings and whatis included as hard savings.

l Ensure that all guidelines on benefits calcula-tion, as laid down by the CFO’s office, isadhered to.

l Try to involve the CFO or his or her representa-tive during the toll gate reviews, the championshould also get involved here.

l Create highly visible dashboards to communi-cate to the team members and the organizationthat the project is delivering savings.

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l Recognize the members from finance organ-izations who have helped in the projectcompletion.

l Before making claims on benefits ensure thatthe calculations are validated by the processowner, master black belt and the CFO’s office.

So, when you do all the above during the process ofthe project execution, you will not only receiveappreciation from the CFO but also the claims will beauditable by anyone in the world.

Six Sigma Takeaway

Keep the finance function in the loop during theentire life cycle of the project.


Lesson 30

Six Sigma methodology is just not for manu-facturing organizations. It can be deployed inservice organizations as well

Some people think that Six Sigma is only for themanufacturing industry. They feel that since the toolshave been used in a manufacturing industry, it cannotbe applied in a service industry. It is important toremember that irrespective of whether it is a manu-facturing organization or a service business, they are acollection of processes. So Six Sigma can be appliedwithout any hurdles. Some consultants have workedout Six Sigma Black Belt/Green Belt training program-mes targeted at the service organizations. Theseprogrammes deal with cases from the service space andattempt to address problems experienced there.

However, the application of Six Sigma in serviceoperations is quite challenging. It requires much greatereffort and focus for successful Six Sigma deployment.The following are the reasons which make imple-mentation a challenge in the service space:

l Processes are not visible

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Unlike in manufacturing industries where you cansee the process in front of your eyes, in the serviceindustry the processes are hidden. Say forexample: You can see the process of soap manu-facture before you, but it may be difficult to seethe account opening process in a bank.l Performance Measurements not thereOften process parameters are not measured in aservice sector, so one may not be aware of howprocesses are performing. The data which ispresent is often narrow, subjective and cannot betaken for improvement work.l Focus on quality is often lessQuality as an agenda has been an integral part ofall manufacturing companies but its only over thelast five to seven years that service companies havereally started to look at quality as an integral partof their businesses. The emphasis on quality hasalways been there in manufacturing organizationsbut it is a new thing in service companies. Onecan imagine that trying to implement Six Sigmain service organizations, which have never talkedabout quality, may be a tall order.l Involvement of PeopleAs the involvement of people is high in the serviceindustry, the chances of errors and problemsare more. This is because processes are highlydependant on people and hence the chances oferrors and quality issues go up. Also, people inthe service industry are often not exposed totechnical tools and measurements, which makethem quite unprepared for sophisticated tools that


may be required in Six Sigma. Of course, this canbe eliminated through training.

What is required in service companies before theyset out on a Six Sigma implementation is to define theprocesses well. It would help if these organizations havea business process management framework. This couldbe achieved either through an ISO 9001:2000 standardsimplementation or through Business Process Manage-ment System (BPMS) which is nothing but laying downend-to-end processes around customers with measure-ment systems and process owner. While a BPMS systemis being laid down, the non-value added steps shouldbe removed.

Do not focus too much on complex statistical toolsin service companies. The approach should be to usetools which lead to improvement and not get lost instatistics.

Once service organizations decide to implement SixSigma, the endeavour should be to take the entire teamwith a clear vision, focus on measurement system andremove ambiguities through measurable performanceindicators. Remember, it is imperative to focus on thefundamentals such as process mapping and processownership, before implementing Six Sigma.

Six Sigma Takeaway

Service companies should clearly define theirprocesses before implementing Six Sigma.

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Lesson 31

Be on top of meetings. Let them be enablers toproject improvements

Meetings are an integral part of Six Sigma projects. Soit is essential that meetings should be effective anddeliver value. Millions of rupees are wasted due toineffectively managed meetings caused by poorplanning, too many or too less participation, poorcommunication techniques etc. Meetings which seemto go on forever and accomplish little or nothing leavesus feeling extremely frustrated. So what makesmeetings effective? Here are a few guidelines whichwill make the meetings effective and accomplish theirintended goal.

l Avoid a meeting if the same information couldbe covered in a memo, e-mail or brief report.Check out if the meeting is really required andwhether it is the best way to handle thesituation.


l Define the purpose of the meeting and setobjectives before hand. The benefits of settingobjectives for the meeting are two fold: (1) Ithelps to plan the meeting and the more concreteyour meeting objectives, the more focused theagenda will be. (2) Having specific objectivesfor each meeting means that there is a concretemeasure against which you can evaluate thatmeeting.

l Develop an agenda in co-operation with keyparticipants. Before the meeting starts, provideall participants with the agenda which shouldinclude a description of the meeting objectives,a list of the topics to be covered and a list statingwho will address each topic and for how long.While sending the agenda you should includethe time, date and location of the meeting andany background information which partici-pants need to know to hold an informeddiscussion on the meeting topic.

l Assign a time to prepare for the meeting. Giveparticipants time to prepare for the meeting. Ameeting without preparation may lead younowhere.

l Set a time for the meeting to begin and a timefor it to end, and then be certain to adhere tothese times. This will allow the participants toplan the rest of the workday.

l If possible, arrange the room so that membersface each other, i.e., in a circle or a semi-circle.For large groups, try u-shaped rows. Choose alocation that is suitable to your group’s size.

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Small rooms with too many people getstuffy and create tension. A larger room ismore comfortable and encourages individualexpression.

l Encourage group discussions to get all pointsof view and ideas. Keep the conversationfocused on the topic. Feel free to ask for onlyconstructive and non-repetitive comments.Tactfully end discussions when they aregetting nowhere or becoming destructive orunproductive.

l Zero in on the actions. Don’t finish anydiscussion in the meeting without deciding howto act on it. Listen for key comments that flagpotential action items and don’t let them passby without addressing them during yourmeeting.

l Summarize agreements reached and end themeeting on a unifying or positive note.

l Evaluate the meeting. Assign the last fewminutes to allow every person to answer thefollowing questions: What worked well in thismeeting? What can we do to improve our nextmeeting?

If the above guidelines are followed, the meetingswill be much more effective and you will see the resultsfor yourself. As a Six Sigma project leader you have tomaster the art of conducting meetings. My recom-mendation to organizations is that all Black Belts andGreen Belts should be trained to run meetings and


put in place a mechanism to constantly monitortheir effectiveness.

Six Sigma Takeaway

Effectiveness of meetings can be judged by thenumber of actions being generated and numberof actions getting closed.

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Lesson 32

Before setting out to do a Six Sigma projectensure that it is scoped well

Before setting out to do a Six Sigma project it isimperative that it should be scoped well. When a projectis scoped, essentially it is the process boundaries thatare being laid. It means we define the project limitswithin which the process being taken up for improve-ment will be looked at. The importance of an effectiveproject scope is that it allows problems to be looked atwith laser type focus. The precise scoping of projectsallows the team members to stay within limits.

A Six Sigma project should ideally take three to fourmonths. No projects should go beyond six months. Anyproject that is overrun beyond six months can result inteam de-motivation due to lack of progress and couldeven result in team break-up. This could lead to furtherdelay. A delayed project will also lead to increase inproject deployment costs. An important criteria of SixSigma projects is that it should provide benefits in termsof cost, quality and timing. So, do not take up a projectwhich cannot be completed within three to four months.


Never take up projects that aim at ‘poverty allevia-tion’ or ‘removal of world hunger’. Often, championsmay push people to take up projects which areambitious and are of a large scope. This especiallyhappens when champions are not aware of Six Sigmaand what is a right scope. Also, champions may thinkof putting unrealistic expectations with the thought ofstretching goals. Remember, this should never beallowed. When a team takes up projects with unrealisticexpectations, it is a clear recipe for frustration of teammembers. It should be mentioned here that projectswhich are top-down are often tied to the businessstrategy but are quite broad in scope. This is where theinternal Six Sigma experts (read: Black Belts) have tobreak it up into manageable projects. However, projectswhich are bottom-up may not have this problem as theyare typically scoped by internal Six Sigma experts. Myrecommendation is that the champion and the BlackBelts should sit together and scope out the projectstogether. When this is done the alignment of thechampion automatically happens.

Sometimes data may be required before deciding thescope of a project. If so we should complete the requireddata collection before arriving at a project scope. Aproject scope should have a narrow scope with specificboundaries that enable completion within stated time-frames.

When commencing a Six Sigma journey I wouldrecommend that projects which are relatively lesscomplicated should be taken up. This is importantbecause the success of a Six Sigma project is extremelycritical. This is because unsuccessful projects could lead

DEBASHIS SARKAR 105

to de-motivation and there may be reluctance to takeup successful projects. Remember, success breedssuccess. The first project should be aimed at gainingconfidence. So, even if the scope is small, do not worry.

When a number of small manageable projects aretaken up for improvement, it will lay the seeds ofquality work all across the organization. This is muchbetter than taking up a few large projects. A number ofsmall projects lead to Six Sigma reaching deep and widewithin the organization and is an ideal method toembed the seeds of improvement within the organ-izational fabric.

Six Sigma Takeaway

A project which cannot be completed withinreasonable time-frames should never be taken upfor improvement.


Lesson 33

The organization should have an effective meth-odology to ensure that there is a continuous flowof ideas

The other day I was talking to the Improvement Headof a leading financial services organization. His concernwas that having started the Six Sigma journey, howwould he look at ensuring constant flow of ideas whichcan be taken up for improvement. This is quite a familiarstruggle in organizations which start their journeytowards Six Sigma implementation. Having startedwith a few Six Sigma projects they are not aware as tohow they can have a bank of improvement oppor-tunities which gets constantly replenished.

In light of the above, it is necessary that before theprojects get underway, multiple sources of project ideasshould be identified. The generation of improvementopportunities is never a problem even in an organ-ization which has made huge strides in qualityimprovement. What is required is to identify themultiple sources of potential project ideas.

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The following is a list of project sources which anorganization should look for:

l Voice of the Customer: Constantly look forpotential ideas from customers. An organizationcan get to hear the customer’s voice fromsurveys, focus group activities, face-to-faceinterviews, competitive shoppers, toll freetelephone numbers and auditors.

l Project Selection Workshop: A structured methodfor project ideas is to hold a project selectionworkshop. In such workshops, potential projectideas are drilled from business objectives.Typically champions are involved in a projectselection workshop. An organization shouldcarry out a project selection exercise at thebeginning of each year to ensure there aresufficient ideas for improvement.

l Customer Complaints: Complaints are an excel-lent source of potential project ideas. Look fortrends/patterns in complaints and the vital fewwhich result in customer issues.

l Ideation: Ideas could be brainstormed involvingprocess owners and people at the workplacewho are directly or indirectly associated withor affected by the process.

l Look at mission critical processes: Bring the missioncritical processes under the microscope. Everyorganization has a few mission critical processeswhich drive the achievement of strategic objec-tives. When looked at in a greater detail, you


will discover that there are clear opportunitiesfor improvements.

l Cost of Quality Reports: Cost of poor quality(COPQ) reports serve as an excellent source forimprovement opportunities. It may make senseto put in place a COPQ measurement for everybusiness unit, function, department or work-place. The concept of quality costs have beendiscussed in detail in another lesson.

l Suggestion Scheme: This is a bottom up approachto get ideas for improvement. This methodol-ogy allows the involvement of all employees inan improvement effort. What would be re-quired is a fairly robust mechanism to supportit, as it would require all suggestions for im-provement to be responded. Providers of ideaswhich are accepted for implementation shouldbe rewarded suitably. In case there is an in-house intranet, you could seek improvementideas through it as well.

l Costs: Find out all the high cost processes. Thesemay be a good candidate for a Six Sigma project.You may have to use the Activity Based CostingMethod for this purpose.

Remember, before setting out on a Six Sigmajourney, identify the possible sources of improvementopportunities. You could start with a few sources andthen increase the list. But avoid landing in a situationwhere you complete with your first phase of projectsand do not have further ideas for improvement.

DEBASHIS SARKAR 109

Six Sigma Takeaway

Create a solid infrastructure for continual in-flowof project ideas.


Lesson 34

All improvement ideas need not qualify ascandidates for Six Sigma project

Once multiple sources of project ideas have been setup, an organization probably gets inundated with ideas.Managing these ideas is critical as all of them may notqualify for a DMAIC project. What is required is to setup a clearly laid down criteria for anyone to know whatqualifies for a DMAIC project and what does not.

I have worked out a ‘DMAIC Ideas Matrix’ whichhas been used extensively to ascertain whether an ideais eligible for a DMAIC project.

DMAIC Ideas Matrix

Each idea should be run through the following list toascertain if it has a potential for a DMAIC project:

S.No. Criteria Yes/No

1. There is a gap between the current anddesired/needed performance.

(contd.)

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S.No. Criteria Yes/No

2. The cause of the problem is not clearlyunderstood.

3. The solution to the problem is not pre-determined, nor is the optimal solutionapparent.

4. The process is not well defined.5. The process is not in transition.6. The idea does not look at controversial

issues which could lead to the ideas dyingoff because of inter-departmental turf wars.

7. A similar problem has not been taken up forimprovement in any other parts of the business.

8. The implementation of the idea does notmerely lead to incremental improvementbut looks beyond it.

9. The Idea makes a likely business case andweaves into the larger strategic objectives.

10. There is an urgency in the addressingof the problem.

11. The problem is getting bigger and biggerover time.

12. There is no other easier method to tacklethe problem.

13. There would be a likely buy-in for this project.

All the criteria should be positive for an idea toqualify for a DMAIC project.

Six Sigma Takeaway

Ideas for Six Sigma project should centre primarilyaround customer or business issues.


Lesson 35

Creating the right organizational structure isessential for Six Sigma deployment

Quite a few people often ask me what should be theorganizational structure in a company commencing ona Six Sigma deployment. While there could be quite afew structures, the one mentioned below has found tobe quite effective.

The Head of Quality, Head of Corporate Quality,Head of Improvement or Head of Excellence has theoverall responsibility for getting the customers’ voiceinto the organization. He or she is actually thecustomers’ representative in the organization andensures that the company does all that is required fortaking the company to the trajectory of excellence. Thisposition directly reports to the CEO of the companyand should have equal authority as other direct reports.This position is also a member of the Quality Council.

The Master Black Belts (MBBs), Black Belts (BBs)and Green Belts (GBs), all report to the Head of Quality.The MBBs, BBs, GBs are typically deputed to various

DEBASHIS SARKAR 113

business units and function for Six Sigma deploymentand project execution.

l Quality Council comprises senior management team and is chaired by the

CEO.

l Master Black Belts Report to Head Quality and have a dotted line reporting to

the Business Heads and Functional Heads.

l Black Belts and Green Belts report to Master Black Belt and Black Belts

respectively.


In a few organizations, the Head of Quality does notreport to the Chief Executive Officer but to some otherline head or business head. This is not really the rightthing to do. Remember, the Head of Quality is respon-sible for the following major roles to play:

l Represent the needs of the customers.l Be responsible for overall quality deployment

(includes Six Sigma) in the company.l Play a leading role to take the company towards

an improvement trajectory.l Be responsible for the setting up of the Quality

Management System within the company.l Ensure that improvement tools such as Six

Sigma are deployed correctly.l Periodically report to the CEO about the health

of ‘quality’ in the company.

Six Sigma Takeaway

In order to maintain impartiality, the Head ofQuality should report to the CEO of the company.

DEBASHIS SARKAR 115

Lesson 36

Before determining the sample size and samplingplan, ascertain if the data for measurement isfrom a moving process or is it from a stagnantpopulation

I have often seen that people working on Six Sigmaprojects do not follow the right sampling strategy andthe right sample size. Either the sampling plan and sizeis both incorrect or the sampling plan is correct but thesample size is wrong. I understand that the deter-mination of a proper sample size is often complicatedand may require prior statistical knowledge. But anorganization should not take sample sizes at whims andfancies, but must follow the right sample size to ensuredesired results.

There are Six Sigma trainers who preach randomselection of 30–50 samples without bothering about thetype of data that is being handled. This is absolutelyincorrect.

It is important to note that the sample size andsampling strategy will be dependant on the status of


the process. Practitioners often miss this, which leadsto wrong results.

Sampling from a still population is different fromsampling from a moving process. The former is calledpopulation sampling while the latter is called processsampling. Population sampling essentially meanstaking samples from a standing puddle of water whileprocess sampling means taking the sample of waterfrom a moving river. To give you some more examplesfrom workplace, taking samples from a set of 10000account opening forms in a bank is populationsampling. On the other hand, ascertaining the per-formance of a customer service associate in a call centrewith every 100th customer, is process sampling.

In real life there will be a number of instances whenyou come across a process which is moving andchanging minute by minute. So using populationsampling may be incorrect. Unlike a stagnant popula-tion, in moving processes the challenge is to sample insuch a way that it is representative of the whole movingprocess. Depending on whether the data is from apopulation or from a process, one should apply popula-tion or process statistics and arrive at the sample sizeand sampling strategy.

Six Sigma Takeaway

Process sampling is always more challenging thanpopulation sampling.

DEBASHIS SARKAR 117

Lesson 37

Understand the key terms and the steps involvedin DPMO calculation

Defect: This refers to anything that does not meetthe requirements of a customer, laid down product orprocess standards. You could also say that anythingwhich does not match the laid down performancestandards or results in a non-conformance is a defect.

Opportunity: A chance or an event that a product orservice may not meet the laid down performancestandard or customer requirement.

Unit: This refers to the object on which a measurementor observation is made. It also refers to an item beingprocessed or a product (includes service) being deliv-ered to a customer (includes both internal and externalcustomers). Remember, it is always used in the senseof the entity of an inspected product in order to deter-mine if it is defective or non-defective. A unit could bea scooter, a van, a home loan, an account opening formin a bank, an airline travel, a bank statement and so on.


Defect Per Million Opportunities: This refers to theexpected number of defects found per million oppor-tunities.

To calculate DPMO, these steps could be followed:

l Which processes are you working on?

l What is the principal output of the process alsocalled ‘unit’ or the object on which a measure-ment is being made (U)?

l What are the defects that you will be looking atin a single ‘unit’?

l What is the number of defects that you find onone single unit (These are the ‘opportunities’(OP) ?

l At the end of the process, what are the totalnumber of defects? (D)

l What is the Total number of Opportunities(TOP = U ´ OP)?

l What are the Defects per Unit or DPU (D/U) ?

l What are the Defects per Total Opportunities(DPO = D/TOP)

l What are the Defects per Million Opportunities(DPMO = DPO ´ 1000000)?

Let’s look at the following examples:

Example 1:

Let us look at an account opening form at a bank.

l Which process are you working on?: Process offilling an account opening form.

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l What is the principal output of the process alsocalled ‘unit’ or the object on which a measure-ment is being made? Correctly filled accountopening form.

l What are the defects you will be looking at in asingle ‘unit’? (a) Incorrect Address, (b) IncorrectName, (c) Availability of PAN or PermanentAccount Number for tax purposes.

l What are the number of defects that you canfind on one single unit (These are the ‘opportu-nities’ (OP)? 3.

l At the end of the process, how many units werecounted (U)? 250 (Account opening forms).

l At the end of the process, what are the totalnumber of defects? (D)? 50.

l What is the Total number of Opportunities(TOP = U ´ OP)? 750.

l What are the Defects per Unit or DPU (D/U)?.20.

l What are the Defects per Total Opportunities(DPO = D/TOP)? .066667.

l What are the Defects per Million Opportunities(DPMO = DPO ´ 1000000)? 66666.67.

l What is the Sigma level corresponding to theabove DPMO levels (Use the DPMO – SigmaConversion Table mentioned at the end of thisLesson)? 3 Sigma approx.

Example 2:

DPMO can also be calculated in the following mannermentioned below:

Here we shall look at a few defects which were foundin 100 ml hair oil bottles of a brand ABC:

120L

ESSO

NS IN

SIX SIG

MA

Characteristics D U OP TOP = U/OP DPU = D/U DPO = D/TOP DPMO = DPO´ 1000000

Overfill volume 20 2000 2 4000 0.01 0.005 5000Label lifting 15 1971 3 5913 0.00761 0.002537 2536.783Oil smearon bottles 55 21000 3 63000 0.002619 0.000873 873.0159

Total 90 72913 0.001234 1234.348

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Use the DPMO–Sigma conversion table to get thecorresponding Sigma levels.

In this case the Sigma level corresponding to 1234.348DPMO is 4.5.

DPMO – Sigma Conversion Table

Yield (%) DPMO Sigma

6.68 933200 0

10.56 894400 .25

15.87 841300 .50

22.66 773400 .75

30.85 691500 1

40.13 598700 1.25

50 500000 1.5

59.87 401300 1.75

69.15 308500 2

77.34 226600 2.25

84.13 158700 2.5

89.44 105600 2.75

93.32 66800 3

95.99 40100 3.25

97.73 22700 3.50

98.78 12200 3.75

99.38 6200 4

99.70 3000 4.25

99.87 1300 4.5

99.94 600 4.75

99.977 230 5

99.987 130 5.25

99.997 30 5.50

99.99833 16.70 5.75

99.99966 3.4 6.0


Six Sigma Takeaway

Everyone associated with the process that is beinglooked through the lens of Six Sigma should befamiliar with the calculation of Sigma levels.

DEBASHIS SARKAR 123

Lesson 38

DPMO is a good concept but be alert about theconfusions it can create. Mindlessly increasingthe Opportunity Levels can increase the SigmaLevels

We have earlier seen the concept of DPMO or the ‘defectper million opportunities’, which is the expectednumber of defects found per million opportunities. Theformula for DPMO is:

DPMO = DPU ´ 1,000,000/Average opportunity forerror in one unit.

A DPMO gives additional insight into a process byincluding the element of opportunities for failure.Traditionally we looked at the rate of defects after theend of a process. So, if 100 units were produced and 5units failed, we reported the defect rate as 5 per cent.However, in DPMO we include all the chances of aproduct failing to meet the performance. We have seenthe calculation in detail so it will not be delved on inthis section.


The beauty of DPMO is that it gives a commonlanguage to compare processes of various complexities.It is a metric that allows for the uniform measurementof processes. But the DPMO usage should be done withcaution, especially with respect to the number ofopportunities that are decided upon for calculation.

In light of the above, the following is suggested toavoid confusion:

l Consider only those defects which make sense.Mindlessly increasing the defects would reducethe DPMO while increasing the Sigma levels. Thismay be misleading as the process may not beperforming well but the Sigma levels may be high.The best thing to do here is look at only that defect/defects that are linked to the CTQ characteristics.

To illustrate this let us look at an example of anaccount opening form. The opportunities could bename, address, income levels, type of account,correct nomination, PAN number and introducer’sname. One approach could be to consider all the‘defect’ opportunities. This may not be the rightthing to do as many of the items mentioned arenot going to affect the customers. Instead offocusing on all seven items, just focus on threeitems as defect opportunities i.e. name, addressand PAN number. The more the number ofopportunities, the DPMO figures would go downwhile increasing the Sigma level. This may hazethe reality.l The definition of defects should be standard-ized all across the company so that irrespective ofthe location or business group, the understand-ing is the same.

DEBASHIS SARKAR 125

l Wherever possible, cluster the related defectsinto a single opportunity. Let’s understand thisby an example. While talking about guest relationsin a hotel, the following is a list of opportunitieswhen a defect could happen (only a partial list isconsidered here):

Behaviour of the front office person.Check in time.Cleanliness of the toilets.Cleanliness of bed-sheets/linen.Time taken for room service.Cleanliness of cutleries.Time taken for getting toiletries.Functioning of air conditioner.Room lighting.Billing error.

Instead of taking all opportunities, cluster the aboveinto four opportunities such as:

1. Front office (Behaviour of front office person,check in time, billing error).

2. Housekeeping (Cleanliness of toilet, cleanlinessof bed-sheet/linen, time taken to get toiletries).

3. Room service (Time taken for room service,cleanliness of cutleries).

4. Maintenance (Functioning of air conditioner,room lighting).

It is always practical and convenient to have a shorterlist of opportunities. Had all the opportunities fordefects been considered, the DPMO would have been


reduced—thus increasing the Sigma levels. Always useyour team’s judgment to come up with a list of defects.Remember, there is no right or wrong answer to it.

Six Sigma Takeaway

Before making inferences on Six Sigma levelscalculated through DPMO, have a look at thenumber of opportunities.

DEBASHIS SARKAR 127

Lesson 39

Do not be satisfied merely with Yields, commencewith the calculation of a First Pass Yield

Traditionally organizations have calculated yields at theend of the process by looking at the superior productsproduced. These products also include items which mayhave got reworked during processing. For example:


Out of the 100 units which entered the process, therewere 20 units which were defective after the first stepof operation. In the second step, out of 80 units that getin as inputs, 15 are defective. However, after Step 1,out of the 20 defectives produced, 10 are reworked.Similarly after step two, out of the 15 defectives, 5 arereworked.

Traditionally, Yield (also called Final Yield) has beencalculated by looking at the outputs produced at theend of the process and includes the defective itemswhich have been reworked.

So, following the above methodology Yield = 80/100 ´ 100 = 80 per cent.

There is another yield which every professionalshould calculate, this is known as the First Pass Yield.This indicates the number of units made withoutincluding the defectives that have been reworked. Thisgives a true picture of the process. It gives the truepicture of your internal processes.

Hence, First Pass Yield = 65/100 ´ 100 = 65 per cent.It is imperative that while calculating the yield, you

also find out the First Pass Yield. This helps you tounfold the hidden factors or the non value addedactivities happening in your process.

Six Sigma Takeaway

When an yield of a process is reported, ascertainif it is the Final Yield or First Pass Yield.

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Lesson 40

You can unfurl the non-value added activities

in your process from DPU levels by a measure-

ment called the Rolled Throughput Yield

We have already seen the concept of First Pass Yield inLesson 40. Another methodology to determine the non-value added operations in a process is to look at theRolled Throughput Yields (RTY). The RTY measure-


ment unfolds the hidden factors in a process. It is anestimate of the percentage of units that pass through aprocess without any defects.

You can find the Rolled Throughput Yield of theprocess by the following method:

RTY = (Yield after Process Step 1) ´ (Yield afterProcess Step 2)

RTY = (80/100) ´ (65/80) = .6581 = 65.81%.

We can also calculate RTY from the DPU levels butwe will have to look at a bit of elementary statistics.

What is yield?

It is a probability density curve between thetolerances.

We will use the method of Poisson Distribution here.A Poisson process is said to exist if we can observediscrete events in an area of opportunity—a continuousinterval (length, time, area etc), in such a manner thatif we shorten the area of opportunity or intervalsufficiently,

1. The probability of observing exactly one successin the interval is stable.

2. The probability of observing more than onesuccess in the interval is zero.

3. The occurrences of a success in any one interval isstatistically independent of that in any otherinterval.

Thus probability with zero failures (from PoissonDistribution) =

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= Y = P(x = 0) = e

x

x-ll

!= e–l

= e–D/U = e–DPU

(Where l is the mean of the distribution, x is thenumber of failures and e is a mathematical constantapproximated by 2.71828, D is the number of defects,U is the number of units and DPU is Defects per unit).

So, the Rolled Throughput Yield (RTY)

= YRT = e–D/U = e–DPU

Example:

To take an example, lets look at the above process whichhad two steps. The RTY can be calculated with the helpof the following table:

Operation Defects (D) Units (U) DPU (= D/U) ThroughputYield (=)

1 20 100 .2 .8182 15 80 .1875 .829

Total 35 180 .3875 .678


Thus, the Rolled Throughput Yield of the process =67.80 per cent.

To summarize, Rolled Throughput Yield ensuresthe probability of passing a unit of product or servicethrough the entire process in a defect-free manner.

Six Sigma Takeaway

Rolled Throughput Yield is the best yield metricsto drive improvement and is the percentage ofunits that passes through an operation withoutany defects.

DEBASHIS SARKAR 133

Lesson 41

Defects in a Six Sigma process without a shift is

2 Defects Per Billion and not 3.4 Defects Per

Million opportunities

This is a topic which neophytes of Six Sigma often getconfused with. It is based on the theory that with thelapse of time any process that is in control shifts fromthe target or mean by up to 1.5 sigma (1.5 s). This resultsin acceptance of the Six Sigma value as 3.4 defects permillion. Without the 1.5 Sigma shift, Six Sigma resultsin 2 defects per billion opportunities.

This is elucidated in detail below:Without a 1.5 sigma shift (1.5 s), the number of parts

per million (ppm) that would be outside the specifica-tion limits (if the data were centered within the specifi-cation limits) having various standard deviations, areshown in the figure on the following page.

With a non-central data and considering a shift of 1.5s, the distribution with respect to the specifications is:


Within +/– 1 Sigma, 68.27% of the data points are included and result

in defective levels of 317300 ppm.

Within +/– 2 Sigma, 95.45% of the data points get included and result in

defective levels of 45500 ppm.

Within +/– 3 Sigma, 99.73% 99.73% of the data get included and

result in defective levels of 2700 ppm.

Within +/– 4 Sigma, 99.9937% of the data get included and result in



defective levels of .57 ppm.

Within +/– 6 Sigma, 99.9999998% of the data get included and

result in defective levels of .002 ppm.

(The above data can be obtained from any normaldistribution table in the appendix of a statistics book.)

There are some practitioners of Six Sigma who donot believe in the concept of a shift. They say that ashift of 1.5 sigma results in the defect adulteration from2 ppb to 3.4 ppm, which is a quality adulteration of1700:1. They also say that it is relatively easy to correctthis shift from the target value by a minor adjustment.

DEBASHIS SARKAR 135

Within +/– 1 Sigma, 30.23% of the data points are included and


Within +/– 2 Sigma, 69.13% of the data points get included and result


Within +/– 3 Sigma, 93.32% 99.73% of the data get included and




Within +/– 5 Sigma, 99.97670 % of the data get included and result


Within +/– 6 Sigma, 99.999660% of the data get included and result

in defective levels of 3.4 ppm.

My recommendation here is that do not get lost inthis methodology war. Use the rigour of Six Sigma forimprovement.

Six Sigma Takeaway

Do not get lost in the concept of 1.5 sigma shift,work towards improvement.


Lesson 42

Get a sense of whether Six Sigma is delivering

value through the measurement of Quality Costs

A key ingredient to Six Sigma deployment is cost-baseddiscipline. A sound Six Sigma system contributes tocustomer satisfaction and organizational objectives,including financial stability. Significantly, quality costsare normally overlooked or remain unrecognized inmany organizations because accounting systems are notdesigned to identify them. Before setting out on a SixSigma journey it would make sense to put in place asystem to evaluate the quality costs in the organization.Quality costs not only provide details on potential areasof improvement but also reflect whether Six Sigma isdelivering the benefits once deployment is underway.

So what is Quality Cost? Quality cost or cost ofquality is defined as the cost of those activities whichan organization or process possesses over and abovethe minimum cost that is required to do the job well.Any costs associated with correcting failure or wastego into quality costs, as do any assurance or approval

DEBASHIS SARKAR 137

activities built in to cushion customers form the effectsof such failures. A further set of activities are those inwhich we attempt to prevent such failures fromoccurring at all, such as effectively designed marketresearch and training.

Essentially quality costs are defined as the total costsincurred by (a) investing in the prevention of non-conformance to requirements (b) appraisal of a productor service for conformance to requirement and (c)failure to meet requirements.

Now what are each of these costs:

1. Prevention Costs

All that we spend to prevent defective work frombeing made in the first place is grouped under preven-tion costs. This includes cost of quality management,setting up and operating quality control and qualityassurance systems, provision of foolproof methods—so that work is bound to be made correctly, supplierquality assurance, vendor appraisal, calibration andmaintenance of measuring, equipment etc.

2. Appraisal Costs

These are the costs of inspection and test in its widestsense including checks done by people who are nottitled inspectors, e.g. setter, supervisors etc. Theappraisal cost could be divided into two groups such


as (a) Cost of test and inspection to identify andeliminate defective work. For example the cost of 100per cent inspection or sorting to find and eliminatedefective work. (b) Cost of test and inspection tomonitor processes, and keep them right.

3. Failure Costs

This is the cost incurred due to design failure or theinability to make or provide the quality of product orservice as it is demanded by the customer. Failure costseasily tend to be the largest of the three quality costs,and we can divide them into internal and external costsas given below:

F Internal Failure Costs

These are the costs incurred within the manufacturingorganization, up to the moment when the product istransferred to the customer. Typically they include thefollowing: Scrap, Rework, Corrective Operations (thisis the cost of correcting work which is wrong),Downgrading, Seconds and Associated Costs (loss ofproduction capacity, cost of investigating the cause) etc.

F External Failure Costs

These are costs incurred after the product has beenhanded over to the customer. For example: Cost ofproducts or services rejected by the customer or recalled

DEBASHIS SARKAR 139

because of some defect; product liability; warrantycosts; cost of placating irate customers; loss of futureorders from that customer, etc.

There is of course considerable room for discretionas to what should or should not be included in theprevention costs; to make any meaningful controlpossible therefore, it is essential for the quality managerand the accountant to agree precisely on what shouldnot be included.

My recommendation to all organizations treading onSix Sigma is to put in place a mechanism for qualitycost measurement so that the management can get toknow if Six Sigma is delivering value. As a matter offact, quality costs should be an agenda item of all qualitycouncil meetings.

Let us see the relationship between Sigma levels andcost of poor quality.

Relations between Six Sigma and Cost of Poor Quality

Sigma Defects per million Cost of Poor Quality

6 sigma 3.4 defects per million < 10%5 sigma 230 defects per million 10 to 15% of sales4 sigma 6.200 defects per million 15 to 20% of sales3 sigma 67,000 defects per million 20 to 30% of sales2 sigma 310,000 defects per million 30 to 40% of sales.1 sigma 700,000 defects per million

Six Sigma Takeaway

Use Quality Costs to find out potential improve-ment projects.


Lesson 43

When a process capability is reported, ascertain

if it is a long-term or short-term capability

When someone reports to you about process capability,ascertain if it is long-term process capability or short-term process capability. The other day a CEO of anorganization told me about how his Quality Managerhad been inflating the ‘capability’ of a process byreporting short-term capability. This was happeningbecause the management did not know the differencebetween short-term and long-term capability. Thecurtain came down when the CEO went for a Six Sigmaprogramme and got to know that long-term as well asshort-term capability could define the capability of aprocess. Now this is not an isolated happening. I knowof another incidence where a Six Sigma consultant washired by a bank to carry out improvement using theSix Sigma methodology on a core business process. Theconsultant was aware of the ignorance of the manage-ment and showed huge improvement by reportingshort-term Sigma instead of long-term Sigma.

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So, what is the difference between short-term andlong-term capability?

l Short-term Capability

This essentially determines the inherent capabilityof a process that is whether the process is in aposition to deliver when the input variables areheld constant. The short-term capability deter-mines the entitlement of a process. Entitlement isthe best observed short-term performance of aprocess, given its design. Short-term capabilitytakes into account only the common causes ofvariation. To determine short-term capability, thestudy should be designed carefully to achieve theshortest term data possible. Yes, it is a must thatthe data used for short-term capability should beover a short period of time. Further, the data needsto be gathered over a limited number of operators,machines, cycles and should always be continuousvariable data.

l Long-term Capability

The long-term capability is the actual performanceof a process. It takes into account both commonand special causes of variations into account. Datafor long-term capability are collected over a longperiod of time covering many cycles, intervals andoperators because it is the variation in the inputsthat causes the variation in output quality. The


data used for calculating long-term capability caneither be continuous or discrete. Data is consideredlong term if 80–85 per cent of the inputs areallowed to fluctuate over a period of time.

The difference between the short-term capability andlong-term capability is the opportunity for improve-ment for Six Sigma practitioner.

It is the endeavour of Six Sigma projects to reducethe gap between long-term performance and short-termentitlement. Make it a policy in your organization toensure that both long-term and short-term capabilityof the processes are determined and reported. Whenthis is done it can be explicit as to how the process isfaring with respect to its entitlement.

Six Sigma Takeaway

Report both short-term as well as long-termcapability for your processes.

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Lesson 44

People at the top should have a gut feel of the

happenings at Ground Zero

In some companies the head of the organization is oftennot aware of what’s happening at the ground zero—the workplace where the action lies. This may appearweird, but let me narrate a real incident.

I was auditing a plant sometime back and wasamazed to find out that log sheets had not been filledby the workmen on a number of days and deviationanalysis had not been carried when the processwandered from the standard. This was contradictoryto what the plant head had told me during theintroduction—that they had excellent systems and theplant had made huge improvements by using tools suchas Six Sigma and TPM (Total Productive Maintenance).On probing I was told that these are outliers and thatmy perception should not get biased. When I asked thefactory head later if he took rounds of the plant, he toldme that his busy schedule did not allow him to takeregular rounds but he had capable managers who took


care of the operations. The log sheets that I saw formyself spoke of a different story, unlike the claims madeby the plant head. They were not only evidences ofpotential quality problems but issues pertaining toworkmen discipline/morale. This was a clear exampleof how the top management is unaware of the realityof the workplace and are happy with whatever feedbackthey get from the operating managers. Often suchfeedback are sugar coated pills which give a feel goodfactor.

It is imperative that people at the top should not getdisconnected with the happenings of the workplace.All business leaders and managers should walk out ofthe cabins and go to the context. They should get thepulse of the workplace for themselves and should belistening to what people are saying. They should beusing the opportunity to transmit the company’s valuesface to face and should be prepared and able to givepeople on-the-spot help. While during the rounds theyshould even be looking at things like log sheets on aproduction floor. This will not only make the people atthe context (workplace/shop floor) alert but they willknow that the person on the top means business anddoes not practice remote control management.

These are the few things that all people at the topshould do, in order to get to know what’s happening atthe context:

F Reserve some time everyday to walk throughall departments.

F Have regular meetings and reviews in thecontext (workplace, field, shop-floor) or at

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others’ offices/spaces rather than at their ownoffice.

F Randomly start popping into offices andasking the inhabitants why they aren’t out.

F Make it a point to spend one day in a monthwith customers. While interacting with thesalesmen in the market one can find out theground realities and the problems that thecustomers may be facing.

F Appear relaxed while making the rounds.Employees will reflect these feelings andactions. Also, one must remain open andresponsive to questions and concerns.

F During these strolls, one should try to find outif the operating managers are feeding him orher with the reality or only the feel good stuff.

F Talk with employees about their passions—whether family, hobbies, vacations, or sports.

F Convey the image of a coach not an inspectorand encourage employees to reveal the realwork of the company.

Remember that the above approach does not meanleaving your responsibilities behind as you strollthrough ground zero or the context. The objectiveshould be to have a gut feeling of what’s going onthroughout the company.

Six Sigma Takeaway

‘Management by remote control’ is detrimental tobuilding quality culture in your company.


Lesson 45

As a Six Sigma change agent, master the art of

conflict resolution

In the journey of Six Sigma deployment there wouldbe a number of occasions when you would require tohandle conflicts. Conflict almost always arises whenthere is a contradiction between different points of view.It is important to have a method for solving conflict inthe organization. Conflict often arises when groups ofpeople work together. It is important to be able to workthrough conflict in a constructive way to maintainmotivation within the team.

Richard Hughes has prescribed five conflict resolu-tion strategies in relation to the level of co-operation(the party’s desire to satisfy the other’s concern) andassertiveness (the party’s desire to satisfy their ownconcerns) that exist.

First, competition is a win-lose orientation where thedesire to co-operate is low and assertiveness is high.This strategy is appropriate when quick decisions arevital (emergencies) or there is no popular decision to

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be found (like increasing dues in order to keepoperating).

Second, accommodation is the antithesis of competi-tion where co-operation is high and assertiveness low.This strategy is valuable when it is important to appeasethe other party (unstable personality), the issue is notvery important to you, or when you find yourself inthe wrong on an issue.

The third strategy, sharing, is a compromise wheremedium assertiveness and co-operation are prominent.This zero-sum strategy may be as simple as sharing aroom instead of having it to yourself.

The fourth strategy, collaboration, is the acme ofnegotiation whereby everyone wins. This strategy isuseful when both assertiveness and co-operation arehigh and the concerns are both vitally and equallyimportant. This orientation is certainly the one that willrequire the most time and effort to resolve—but thereward is worth it.

Finally, the last strategy is avoidance. You are neitherassertive nor co-operative in this instance. This strategyis normally reserved for an issue that is too trivial towaste time on, used as an initial strategy to allow partiesto ‘cool down’, or when others may resolve the conflictmore effectively.

Six Sigma Takeaway

Conflicts are an integral part of all workplaces sowhen there are no conflicts you need to questionif all is well.


Lesson 46

A defect is one which does not meet the customer

needs

You may have the best of products or service but if itdoes not meet the needs and expectations of customersit has no right to be in the marketplace. Gone are thedays when one could be satisfied with producing anddelivering products and services that met the statedspecifications. Either a product or service meetscustomer requirements or it does not. Anything thatdoes not meet customer requirements is called a defect.If a customer has asked for a cavier in a restaurant andhe gets a sizzler, it is a defect. If an airlines trafficassistant is rude to a traveller it is a defect. So it is achallenge before the producers to understand, defineand measure customer requirements. This is needed tocalculate the number of defects in the service orproducts that the process is delivering to the customer.This is more than a methodology but a mindset thateveryone in the company should adopt. It is thephilosophy on which the Six Sigma concept is based.

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So when you define a Six Sigma project, define defectswith customer dissatisfaction in mind.

Commence by identifying the product you create orthe service you provide. Identify the customer for yourproduct or service, and determine what he or sheconsiders important. Lay down processes to ensure thatcustomer expectations are met. In case there are gapsin the process because of which customer expectationsare not met, it is a likely candidate for improvementusing the Six Sigma methodology.

Six Sigma Takeaway

Customers are too demanding these days, do nottake them for granted. If you do not take care oftheir requirements they will desert you withouteven giving a notice.


Lesson 47

Do not wait for problems to occur to initiate

improvements through Six Sigma projects.

Proactively take actions when precursors and

evidences to a problem are seen

Virtually all problems are preceded by evidences andprecursors. These could either be a ‘non-serious event’as a hair line crack on a pipe or an ‘attention grabbingincident’ as an electric shock. They all indicate that thereis a problem which has still to show up. It is like a tremorbefore an earthquake, a body ache before a fever or amajor electric shock before a safety blowup.

In most organizations I have observed that theproblems are addressed only after they happen. Evenafter knowing the problem, it’s the symptoms ofproblem and not causes which are addressed; as a resultthe problems keep on repeating. Since the underlyingcauses are not identified and addressed, they continueto create recurring problems. Even with ongoing orincreased efforts, the problems persist, performance is

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impacted, and frustration becomes the norm. Even-tually, hopelessness and helplessness can invade theorganization’s culture. The challenge before organ-izational leaders is to build a culture that promotesproblem identification where the employees do not waitfor problems to happen but proactively look for signalsthat precede the latter.

The following is the list of incidences which mayindicate that problems are on the horizon:

F Is there a change of event. Whenever thereare problems there is a likelihood that it couldbe followed by a problem.

F Are there any precursors? This could be amachine getting hot before breaking down.This may often appear to be non serious.

F Is there any striking incident like the electricshock before a safety hazard.

F Are incidences repeating? Is there a patternemerging from the incidences?

F Are there sudden complaints?

F Are the users experiencing problems withyour products or services that you areoffering? Here you need to proactively seekfeedback or get into the context of the user.

F Are there any surprising observations? Theseare anomalies which could result in majorincidence. These are called ‘warusa kagen’ inJapanese or things that are not problems butdo not seem quite right.


As a Six Sigma leader it is your duty to inculcate aculture of problem identification among the employees.Initiate projects when the symptoms are seen, do notwait for problems to happen. Leverage the power ofSix Sigma projects for prevention.

Six Sigma Takeaway

Encourage your employees to come up withsymptoms which are potential problems and arepotential Six Sigma projects.

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Lesson 48

Look at processes end-to-end while taking up

projects for improvement

When a process is taken up for improvement it isessential to look at it from end to end. This is requiredbecause if a part of the process is only improved, thecustomer may not feel the impact. Do not use Six Sigmafor the sake of improvement but because customers canperceive the difference. This is the paradigm on whichSix Sigma operates. Let me elucidate this through anexample from a bank.

We look at the problem of a high delivery time ofcheques requisitioned at a bank branch by customers.In this bank the cheque processing is done at a centralprocessing unit outside the branch. At the branch, onlysome preliminary processing is done on the basis ofinformation provided.

One approach would be to do a Six Sigma project oneither Sub Process-1 or Sub Process-2. The other viewcould be to do a project on Sub Processes 1 and 2 asthey are within the bank’s control even if they are not


in the branch. But both approaches are flawed as despitecarrying out the improvements on Sub Processes 1 and2, the delivery time of cheques may not improve andcustomers may not feel the impact, as the process atthe courier’s end is not being looked at and delay maybe happening there. So what should be the approach?You should look at improving all the processes i.e. subprocess 1, 2 and 3. The projects of each of the 3 subprocesses could be done by three individuals or oneperson could take up a single project encompassing allthe three sub processes. Regarding the process at the

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courier’s end, you should carry out a Six Sigma projectthere. Yes, it should be done with the involvement ofmembers from the courier company as they own theprocesses and have the responsibility to keep theprocess in improved states even after the project is over.When improvements in all the processes are carried out,customers would feel the difference. And this is whatSix Sigma is all about. At the end of the day, customersshould feel the benefit of Six Sigma.

So whenever you focus on processes for a Six Sigmaproject take it up from end to end or wing to wing. Theprocess should be looked at customer’s point of viewand determined the way he/she would like it to perform.

Never view processes as isolated business activitiesbut as a family of interrelated processes all workingtowards meeting customer requirements.

Six Sigma Takeaway

It is imperative that the leaders in an organizationview processes not just as isolated businessactivities but as a family of processes which areinterrelated and are working towards meetingcustomer requirements.


Lesson 49

Do not launch Six Sigma with the sole idea of

saving cost for your organization

It may sound queer but many organizations in Indiaare looking at Six Sigma merely for cutting costs. Thereis nothing wrong in it except that focusing on costtakeout projects without the customer on the radar maynot be the right thing to do. This means that organ-izations are focusing on improvements withoutcollecting the voice of customers and converting it tomeaningful projects. This also negates the foundationon which Six Sigma was created—that is to deliverimprovements on processes which impact the custo-mers. I know of an organization which launched SixSigma with the sole aim of cutting costs. While projectsdelivered huge savings, these were at the cost of productquality and customer service. Six Sigma is like a nuclearenergy which can be used both for peaceful as well asdestructive purposes. Six Sigma can also be used in sucha way that it does not deliver value on an ongoing basis.

The reason why organizations have been using SixSigma for cost takeout projects is because it’s the easiest

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way to show that projects deliver monitory benefits.There is nothing wrong in cost takeout projects but oneshould do it keeping the final customers in mind. Thecost savings should be a by product of projects done tocater to customer needs and expectations.

Let me also tell you that cost takeout projects are notsustenable over a long period. You will soon reach apoint when there may not be any avenues left for wastereduction, efficiency improvement and so on. Nevermake this mistake of just looking at costs as you willlose the customers’ angle in the present competitivescenario. Use Six Sigma for profiting by meetingcustomer needs and expectations. Take up projectswhich grow at the top line. Involve the front roompeople (i.e. people from sales, customer, marketingfunctions) on Six Sigma projects. You will see foryourself how Six Sigma can be used to grow salesvolumes, increase the effectiveness of brands, increasecustomer service levels and so on.

So never deploy Six Sigma projects with the sole aimof cost savings. Your Six Sigma portfolio should containprojects on all areas such as revenue generation,customer satisfaction, customer retention, productivityimprovement, operational excellence, cost takeout andothers. But whatever you do, please do not lose sightof your customer.

Six Sigma Takeaway

Do not be parochial by just looking at Six Sigmafor cost savings, leverage its power for drivingrevenue, customer retention, customer satisfac-tion, productivity improvement and so on.


Lesson 50

Select the best performers to take up Six Sigma

projects

To make Six Sigma successful it should be ensured thatthe best people are selected to work on projects. Whenthis happens you will see that not only is there bestoutput coming out of Six Sigma projects but also thatquality gets driven by best performers. Traditionally ithas been seen that a person who has not been perform-ing well in some other function, is accommodated inthe quality department. The quality function has beena place where under-performers and not the best breedare accommodated. When you ask the head of humanresources about this, he/she may tell you that the topperformers are required for sales, marketing, financefunctions and not quality.

If you want your Six Sigma deployment to succeedthis should be changed. Instead of putting any one onprojects, consciously depute the best people on SixSigma. Let me tell you that this is easier said than done.It requires a complete change in the way the organ-ization has looked at quality improvement so far. Do

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not forget that Six Sigma is just not about solving qualityproblems but a methodology to arrest critical businesspains. So the likelihood of top management buy-in ofdeputing the best people is easier. I would recommendthat since the cudgels of Six Sigma success is on theCEO and senior management team, the CEO shouldmake a mandate that in order to rise to seniority, everyperson should get certified as a Green Belt or Black Beltproject person. This means that he/she will have tosuccessfully carry out improvements using the SixSigma framework.

The following is a list of initiatives that will help inensuring that Six Sigma projects are not only taken upby the best people but is also looked at as a reward bytop performers:

l All new recruits who join as managementtrainees should be taken through the basicsof Six Sigma and the top performers shouldbe made to do a project in the business unitwhere they get into their regular roles afterconfirmation.

l Hire some people from top schools (IITs or IIMs)to take up the roles of a Black Belt or Green Belt.Send them to business after the stint gets over.

l All senior management team members shouldget certified at least as a Green Belt, whichmeans they should have effectively demon-strated and used the methodology forimprovement (The CEO should ensure that thishappens).

l For promotions, the completion of a Six Sigmaproject should be made a pre-requisite.


l Those who have been exposed to other parts ofa business and have proven themselves there,should man the quality function. Do not makethe quality function a parking lot for non-performers.

l Reward top performers by nominating them fora Green Belt programme (Black Belt may notbe possible as it means taking up a full timequality role).

l Second the best performers from business for ayear or so to take up the roles of a Black Belt.

l The HR policy should mention that as a pre-requisite for promotion, a candidate shouldcomplete a Six Sigma project.

l The CEO should announce a mandate that aprerequisite for all leadership roles is that thecandidate has previously been a Green Belt ora Black Belt.

Remember, Six Sigma is about world class perfor-mance so its only the top class performers who shoulddrive it.

Six Sigma Takeaway

The CEO could announce that all leadershippositions will only be occupied by certified GreenBelts or Black Belts.

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Lesson 51

Be extremely meticulous about the Book of

Knowledge being followed by the trainers to

prepare your Black Belts or Green Belts

It is extremely important that the right Book ofKnowledge (BOK) is followed for Master Black Belt,Black Belt and Green Belt programmes. I have beenobserving that consulting/training outfits in India aretrying to make a quick buck by packaging everythingas Six Sigma training programmes. This is because ofthe ignorance of organizations on what constitutes thecontent of a Six Sigma Black Belt/Green Belt program-me. Let me give you some examples:

l Problem solving using 7 QC tools beingpackaged as a Green Belt Programme.

l Structured problem solving and facilitationskills, being packaged as a Black Beltprogramme.

l Black Belt programme being conducted in 5days.


l Black Belt and Green Belt programmes notbeing experiential or to say that there are noexamples/cases.

l Black Belt sessions are taken by people whohave never practiced it before.

l ISO and TQM trainers are often resurfacing asSix Sigma trainers without any formal training.

l Certification does not require project executionand completion.

Some people may question why one should beparticular about the programme content if it can driveimprovement. While this may be true, and if low endtools are what comprises the content of a Black Belt orGreen Belt programme, why is there any need to go forSix Sigma programmes. Just train them on structuredproblem solving. Remember, Six Sigma is a tool forbreakthrough improvements which can be effectiveonly when the combination of right tools are applied.There is a need for industry-wide standardization ofcontent covered in the Black Belt and Green Beltprogrammes.

So, whether you are holding an in-house Black Beltor Green Belt programme, or are sending employeesfor public programmme, please ascertain the contentbeing covered as a part of curriculum. In light of thismy recommendation is as follows:

· Approach reputed consulting firms for SixSigma training. Some of the names which youcould look at include BMG, Smarter Solutions,Juran Institute, George Group etc.

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· Benchmark with the Body of Knowledge recom-mended by the American Society of Quality,International Quality Federation.

· Ensure that certification is dependent not juston attending a training programme but alsorequires qualifying a certification and projectcompletion.

· Required number of days are spent on the classroom session (not that Black Belt programmescan be completed in 5 days).

· Ascertain if the BOK also includes cases andexamples.

The following is the Book of Knowledge that isfollowed by BMG (Breakthrough Management Group)for its Green Belt and Black Belt training which isextremely comprehensive:

Green Beltl Adult Learning Processl Six Sigma Overviewl Project Definitionl Minitab Tutoriall Introduction to Basic Statisticsl Process Mappingl Cause and Effect Toolsl Measurement Systems Analysisl Capability Analysisl Graphical Techniquesl Process FMEAl Confidence Intervalsl Intro to Hypothesis Testingl Mean Testingl DOE Introductionl Full Factorial Part Il 2k Factorials Part I

Black Beltl Adult Learning Processl Six Sigma Introductionl Blueprint for Breakthroughl Project Definitionl Project Scoping Toolsl Computer Familiarizationl Minitab Basics Part Il Introduction to Basic Statisticsl Project Planning & Deliverablesl Six Sigma Introductionl Project Definitionl Rolled Throughput Yieldl Process Mappingl Process C&El Minitab Introductionl Basic Statisticsl Capability Analysis


l Introduction to Controll Control Methodsl Introduction to SPCl Variable SPC

Companies should be extremely careful about theBook of Knowledge being included in Black Belts andGreen Belts programmes. If you are not careful you mayget into the trap of trainers who package low end toolsin the Black Belt and Green Belt book of knowledge.

Six Sigma Takeaway

There is a need to standardize the Book of Knowl-edge and Certification process of Black Belts andGreen Belts.

l Measurement Systemsl Process FMEAl Graphical Data Analysisl Correlation and Regressionl Central Limit Theoreml Confidence Intervalsl Hypothesis Testingl Sample Size Selectionl One-way ANOVAl Introduction to DOEl Full Factorial Elementsl Full Factorial Simulationsl 2K Factorials Part 1l Statapult Exercise #1l DOE Sample Size Selectionl 2K Factorials Part 2l Fractional Factorialsl EVOP/PLEXl Response Surface Designsl Multiple Regressionl Intro to Control Methodsl Intro to SPC/SPCl Lean & Six Sigma Synergyl Process Control Plans

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Lesson 52

ISO 9001:2000 Quality Management System

serves as an excellent platform for Six Sigma

deployment

While it is not a must, but it helps to go in for an ISO9001:2000 certification before setting out on a Six Sigmaimplementation.

What are ISO 9001:2000 standards? They are aninternational quality management standard intendedto increase organizational effectiveness by focusing onthe management of key business processes.

The intent of ISO 9001:2000 standards are to:

# Provide an effective linkage between an organiza-tion’s quality management and it’s ‘core processes’.

# Improve organizational performance.# Increase customer satisfaction.

A documented quality system like ISO 9000 wouldput your house in order and also facilitate Six Sigmadeployment. It not only acts as a guide for youremployees to do consistent work but also clarifies work


requirement and responsibilities. So what are thebenefits of ISO implementation which can be an enablerin the Six Sigma deployment?

· Processes are clearly laid out and interactionsbetween them identified.

· Clearly defined responsibilities and authoritieswithin the process areas.

· Provision of assurance that infrastructure issufficient to meet the laid down organizationalquality objectives.

· Provision of a framework to review workcontinually.

· Emphasis on close communication withcustomer.

· Process measurements are put in place.· Institutionalization of a robust audit framework

to continually ascertain the health of the qualitymanagement system.

· Forces organization to look at correction, correc-tive actions and preventive actions.

· Deployment of an effective management reviewprocess.

· Lays the seeds of quality culture and awareness.· Puts the organization on a continual improve-

ment trajectory.

Other than the above, an effective ISO certificationhelps people to communicate faster and with lessfriction because everyone’s understanding of terms andprocedures is the same. A business that follows the ISO9000 standards will usually eliminate wasteful and

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careless practices that can drain their profits. ISO-9000systematically addresses every area of a business wherequality problems can occur. It does this by requiringthat the management defines the potential problemsand implements appropriate practices to prevent them.

Probably the biggest benefits of ISO 9001:2000 whichact as enablers to Six Sigma deployment are its focuson (a) process, (b) continual improvement, (c) measure-ment, (d) customer focus and (e) leadership.

To summarize, before launching Six Sigma ensurethat well-defined processes are in place. This can beeasily achieved through the implementation of ISO9001:2000 standards. ISO 9001:2000 standards alsorequire organizations move into the trajectory ofcontinual improvement and this can be attainedthrough Six Sigma implementation. In a nutshell SixSigma and ISO are implementary.

Six Sigma Takeaway

It helps to go in for an ISO 9001:2000 certificationbefore launching Six Sigma in the organization.


Lesson 53

Banish waste by enmeshing Lean Thinking with

Six Sigma methodology

These days there is a lot of hullabaloo and excitementabout Lean Six Sigma. Quite a few practitionersadvocate that instead of Six Sigma, organizationsshould implement Lean Six Sigma. This is quiteconfusing given the fact that the concept of Lean is notknown to many.

So, what is Lean Thinking?According to the National Institute of Science and

Technology, USA; Lean is a systematic approach toidentifying and eliminating waste (non-value addedactivities) through continuous improvement by flowingthe product only when the customer needs it (called‘pull’) in pursuit of perfection. The genesis of LeanThinking is the Lean Manufacturing philosophy whichgot visibility due to a ground breaking study of ToyotaProduction Systems by a team of researchers led byJames Womack and Daniel Jones. To get a clearerunderstanding of the Lean philosophy, I would

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recommend reading the book Lean Thinking—BanishWaste and Create Wealth in your Corporation, by JamesWomack and Daniel Jones.

Lean and Six Sigma are not mutually exclusive—rather they are complementary. Lean initiatives aregreat for boosting productivity, changing culture andcleaning up workplaces. However, they do not offerthe power tools when it comes to fixing chronic issues.Six Sigma programmes, on the other hand, are popular,focused and effective. But projects take months to finish,and the programme creates Black Belts, who are oftendisconnected from shop floor/workplaces . Companiesacross the spectrum have found the most effective wayto eliminate flaws that lead to rework and scrap, andarrive at one unified idea of continuous improvementby combining Lean and Six Sigma.

Lean manufacturing tools are great for reducingprocess time and improving such things as safety, floorspace usage and cleanliness. Six Sigma can help ifproducts keep failing repeatedly. For this a detailed rootcause analysis is required using Six Sigma.

When the focus is to reduce waste and improveefficiency of a process, lean tools should be leveraged.When the goal is to reduce variation and improveperformance, use Six Sigma methodology.

Lean brings action and intuition to the table, quicklyattacking low-hanging fruits with Kaizen events. SixSigma uses statistical tools to cover root cause andprovide metrics as mile markers. A combination ofboth provides the tools to create ongoing businessimprovement.


By looking at projects through both the lean and SixSigma lenses, we shall have the precision and actionabletools needed to find hidden problems while makingsure we don’t overlook the obvious. Remember, Leanmethodologies must be completed first to maximize theSix Sigma gains, the belief being that if the process isnot lean, Six Sigma efforts will be sub-optimized.

Six Sigma Takeaway

By looking at projects through both the Lean andSix Sigma lenses, you shall have the precision andactionable tools needed to find hidden problemswhile making sure we don’t overlook the obvious.

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Lesson 54

Appoint a Chief Process Facilitator for all Six

Sigma team processes in your company

It would be a good idea to have a Chief ProcessFacilitator (CPF) in your company who is responsiblefor the facilitation of all Six Sigma team processes. Somepeople may say that the project team leaders (i.e. BlackBelts/Green Belts) should have been trained asfacilitators so there is no need to have another positioncreated for this exercise. Do not underestimate theprocess of facilitation as practicing the art of excellentfacilitation is more demanding than definitions mightindicate. My observation is that Black Belt/Green Beltsare good on tools but often lack the required facilitationskills. As a result it makes all sense to appoint a personwho guides without directing, brings about changewithout disruption and brings down walls which havebeen built by people.

A CPF works with all Six Sigma teams and assiststhem in freeing itself from internal obstacles so that itmay effectively pursue its objectives. The facilitator actsas a catalyst, precipitating effective group actions


independent of its specific work product. The CPF alsoprepares facilitators in each function/department/business-group who become the in-house resource,while CPF remains as the corporate resource. The ChiefProcess Facilitator provides opportunities for interac-tion among facilitators so that they can further refinetheir skills by sharing experiences with each other.

In working with most challenging situations, a‘facilitator’ needs to be flexible and clear with himself/herself and the team members, about where on a widespectrum of roles, he/she contributes to the creativedesign or problem-solving process. Other roles of afacilitator are:

l Assisting the team leader in structuring orbreaking down a task into individual assign-ments.

l Looking at ‘how’ decisions are made rather than‘what’ decisions are made.

l Maintaining focus on the team process morethan the team product.

l Studying and using the teachings of Six Sigmaquality improvement.

l Helping team members to become morecomfortable with the scientific approach,including teaching data collection and analysistechniques.

l Continually developing personal skills infacilitation, group processes, and planning,including when to employ interventions andhow to teach such skills to team members.

l Encouraging the groups to seek the causes ofproblems before identifying solutions.

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Who can be a process facilitator?

Ideally he or she should be a person who is familiarwith all the operations of the company and should betrained in facilitation skills.

Effective facilitation is by no means an easy task, butas more and more Six Sigma project leaders come tounderstand what facilitation means, begin internalizingand practising the philosophy, the payoffs in terms ofenhanced productivity will be visible. Facilitation is allabout helping Six Sigma project team members tobehave in a particular way towards achievement of anyof the three goals:

l Accomplishment of the project goals.l Resolution of internal group problems.l Ability of the team members to work together

effectively as a group.

Six Sigma Takeaway

A facilitator fosters self-discovery of alternativesand solutions by protecting team members fromattack, so members feel secure in sharing ideas andthoughts.


Lesson 55

While focusing on primary metrics do not forget

to keep the secondary metrics on the radar

Organizations implementing Six Sigma projects confinethemselves only in monitoring the primary metrics ofthe project. While these metrics should be on the radar,do not forget the secondary metrics.

Primary metric is the measure used to determine thesuccess or failure of a project. When you set out to do aSix Sigma project it is the measure that is tied to theproblem statement. It is the measure which is used totrack progress once a project gets over. The movementof primary metric determines the process performanceover time. It is the primary metric which is used todetermine the benefits or financial gains of a project.The primary metric is monitored by the Process Ownerand Champion to ascertain the voice of the process afterthe project completion.

But there are certain other metrics which you shouldalso track along with your primary metrics. These arecalled the Secondary Metrics or Consequential Metrics.

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These are used to track unintended consequences dueto the process improvement emanating from the projectexecution. For example, an organization implementeda Six Sigma project on optimal utilization of HDPE(high density poly ethylene) material used formanufacturing 100 ml bottles for packaging oil. Theproblem being faced by the organization was that theHDPE consumption had a huge variation. While thestandard consumption of HDPE should have been 14gms, the actual consumption ranged from 13 to 19 gms.As a result the company lost about Rs 2 crore everyyear. After the Six Sigma project, the variation in HDPEconsumption per bottle came down to 12–15 gms fromthe earlier 13–19 gms. The project was declared a successand everybody celebrated its success for more than aweek. However, after two months complaints startedpouring in from the customers. They complainedheavily of leakages due to pin-holes. On probing it wasfound that bottles in which 12 gms of HDPE had beenused had too thin walls which cracked duringtransportation. The lesson for the organization was thatwhile they tracked the primary metric (materialconsumption in this case), they did not bother tomonitor the secondary metrics which was ‘leakagelevels’ in the modified bottles.

Remember, when you are through with your projectexecution, commence monitoring the secondarymetrics. The team members in the project as well thoseassociated with the process should tell you theconsequential metrics which need to be monitored.Specifically remember, the improvements carried outin one area should not lead to a disaster in another area.Finding the secondary metrics is not easy. This is where


the pessimists of the team add a lot of value to find outwhat can go wrong. After the projects get over, a what-can-go-wrong analysis helps in safeguarding otherproblems.

Six Sigma Takeaway

Once your projects get over, do not forget to trackthe secondary or consequential metrics with yourprimary metrics.

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Lesson 56

Six Sigma deployment may be a mirage for

small sized companies but there are ways to go

about it

If you see Six Sigma deployment in India you willobserve that it is largely confined only to large sizedcorporations. There are reasons for it, the key ones beingcost and personnel. Whether we like it or not Six Sigmadeployment requires a lot of money and time ofemployees which small companies cannot afford.

The following are the reasons why Six Sigma deploy-ment is still a mirage for small sized companies:

l For deployment in initial days, Six Sigmarequires support from external consultants.And this is really expensive. Consultants whoknow the stuff do not come cheap.

l A Black Belt programme requires a training of3–4 weeks spread over 3–4 months. This is oftendifficult, in a small company which has say 20–50 people, can one afford to send 2–5 people


for a Black Belt programme over such a longduration?

l Training one or two employees, could alsomean running a risk of creating talent for otherorganizations, by creating potential recruit forother companies.

l Unlike larger companies, savings potential insmall sized companies may not be as great. Thisis because in large sized companies, the numberof processes are more and the potential issignificant prior to Six Sigma implementation.In small companies where the number ofprocesses are less, the return on investment maytake a longer time.

Is there no way out? Not really. Small sizedcompanies can take up the following approach whichmay facilitate Six Sigma deployment:

l Hire a Six Sigma Master Black Belt—who actsas a consultant, provides direction and does therequired hand-holding. He or she shouldspearhead the deployment.

l Let the CEO or a senior person (who has vestedinterest in the company) attend a Black Beltprogramme. This avoids the situation whereone or two people get trained who then laterget hired by other organizations.

l Instead of full time Black Belts, create part-timeBlack Belts who together with regular workcarry out Six Sigma projects.

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l Pilot one initiative in one area of the business.The learnings from this project could give leadson potential challenges in future deploymentof Six Sigma projects.

l Since in-house programmes are expensive, theselected people can be sent to open enrolmentprogrammes.

Other than the above, it would be a great idea ifeminent practitioners in the field of Six Sigma cometogether to provide consultation to the small sector atcosts which can be borne by them. Also, industry bodiesand management institutes can provide Six Sigma BlackBelt training and other support so that small sizedcompanies can be hand held for deployment.

Despite the above hurdles, small companies providesome great conditions for Six Sigma deployment:

l Decisions are fast as the hierarchial layers areless.

l Since small companies are agile, the recom-mendations of Six Sigma projects are quicklyimplemented.

l The senior management being close to thepeople, they are aware of what’s happening inthe shop floor. Hence senior managementshould be virtually aware of what’s happeningon each project.

Let me reiterate here that Six Sigma can be deployedin small companies. All that is required is tweaking inapproach and innovative ways for deployment. The


ultimate impact of Six Sigma will be felt by the Indianindustry as a whole when the small companies whoform the substantial portion, are able to successfullydeploy it.

Six Sigma Takeaway

Six Sigma is not just for large companies, smallcompanies can also leverage it for their benefit ifcustomized and supported well.

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Lesson 57

Do not get perturbed if data points in your Six

Sigma project have a non-normal behaviour

Six Sigma assumes that data will be normally distrib-uted. Most of the tools that are used in Six Sigmaassume that the data is normal. As a result you will seethat at quite a few places one tests normality and thengoes ahead.

However, as you begin working on projects you willsee that normal distributions are not always the norm.There are many instances when data may not benormally distributed. Let me give you a few examples:

l Customer waiting times in a call center.l Turn around time/cycle time projects.

A few ways of treating data when they do not followa normal distribution:

l Convert data points into sub groups.l Segment data as the segmented data may follow

a normal distribution.


l Remove outliers which may be making yourdata points non-normal.

l Ascertain if two or more populations/processesare mixed.

l Convert data into rational sub-groups and takethe average of sub-groups.

l Transform data.l Use distributions other than the ‘normal’ for

solving the problem.l Use non-parametric statistics.

So, whenever there is non-normal data do not getworried. Either get in touch with your Master BlackBelt or talk to a statistician who has been involved insuch projects earlier. The Six Sigma book of knowledgeshould ideally deal with such cases.

The objective of this lesson is to bring out the pointthat it is quite normal to get non-normal data but weshould know how to deal with them.

Six Sigma Takeaway

While Six Sigma assumes normality, it is okay toget non-normal data.

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Lesson 58

Deployment of Six Sigma does not come cheap.

Keep this in mind before setting out on a Six

Sigma journey

Whether one likes it or not Six Sigma deployment doesnot come cheap. The costs are typically dependant onthe size of the organization, scale of deployment,number of Six Sigma resources (Black Belts, Green Belts)required and number of projects that will be taken upfor execution.

In light of this, before setting out on a Six Sigmaimplementation, an organization should know whatwill be the likely expenses of the initiative. Thefollowing is a list of some key cost heads which anorganization should be willing to absorb as it sets outon Six Sigma implementation:

l Staffing Costs—Hiring a Master Black Belt andBlack Belt who are from companies which haveinstitutionalized Six Sigma does notcome cheap. The typical cost to the company


(per annum) for a Black Belt in India rangesfrom Rs 10 lacs to Rs 20 lacs. A Master BlackBelt’s cost to the company (per annum) rangesfrom Rs 18 lacs to Rs 30 lacs. Remember, theseare the costs of potential recruits who have hadtheir grilling in companies such as GeneralElectric, Motorola and so on. The costs arecurrently high as the breed of Master BlackBelts and Black Belts are less. As Six Sigmapopularizes in India, the number of availableresources in the market will be more and thecosts are bound to go down.

l Consultant Costs—As an organization sets outon a Six Sigma implementation, it will requirea consultant who helps in scripting the roadmapthat needs to be taken. The consultant also sup-ports the employees on tools, techniques andlearnings, as they get trained as Black Belts andGreen Belts. Do not compromise on the qualityof consultants. Even if you have to pay a bitmore, go for the best person in the marketplace.This is to ensure that your Six Sigma deploy-ment happened under the guidance of some-one who knows what is to be done and what isright for the company.

l Training Costs—Good trainers of Six Sigma donot come cheap. Whether you hold an in-houseprogramme or send your people for publicenrolment programmes, training for Black Beltsor Green Belts are expensive. For a large sizedorganization, in-house programmes makeeconomic sense. This is because volumediscounts can be negotiated and there would

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be no travel, boarding and lodging expenses forattending a public enrolment programme. E-learning programmes are now available in themarketplace for Black Belt and Green Belts, butit is always better to go in for class-roomsessions for purposes of certification.

l Awareness—To create awareness amongemployees, every employee needs to be takenthrough the basics of Six Sigma and how it canbe a lever for business improvement. These areover and above the Black Belt/Green Beltprogrammes. The endeavour should be to toucheach employee through this initiative. This costwill be minimal in small companies but can behuge for large corporations located acrosslocations and geographies as it means recruitinga set of trainers travelling all across to accomp-lish this. In case an organization is technologyequipped, one can place e-learning materialswhich can be accessed by anyone anytime. Butthis would be a sizeable expenditure in case anorganization does not already have e-basedinstruction materials.

l Rewards and Recognition—This may be smallcompared to the above but should be kept onthe radar. This cost will be dependant on thetype of rewards and recognition an organ-ization wishes to design for Six Sigma imple-mentation and the monitory payout incurredthrough gain-sharing and others.

l Project Tracker—This is required specially forlarge sized companies which expects to carryout a number of projects simultaneously. The


project tracker helps in monitoring the projectsand their status vis the plan. An organizationcould start with an Excel based tracker andgradually get into an automated tracker. Anorganization where lesser number of projectsget executed, an automated tracker is notrequired.

l Knowledge Management (KM) Framework—An imperative in large sized organizationwhere the number of projects are higher, theKnowledge Management platform facilitatesstorage and sharing of best practices. The KMplatform is used to share knowledge across thecorporation across regions and locations; andprevent improvements to stay in pockets of thecompany. In case your organization already hasa KM platform, just leverage it for Six Sigma.Or else, one can buy one from the marketplace.

The above is not to give an impression that Six Sigmais only for companies with deep pockets. There are waysout for small sized companies which I have discussedin some other lesson. Organizations should treat theabove as an investment which should be ploughed backafter successful implementation. Also, with increasingcompetition among trainers and consultants, the priceswill also go down.

Six Sigma Takeaway

Cost-savings measures should always be lookedat with caution. Look at the costs as investments.

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Lesson 59

Avoid pre-conceived solutions from getting force-

fitted into a Six Sigma methodology without any

data analysis

As a champion or the head of a Six Sigma project youhave to be constantly on the watch out to see that pre-conceived solutions are not getting force-fitted into aSix Sigma methodology. It may sound strange but Ihave seen it happening in a number of organizationswhich are into Six Sigma deployment. In case thishappens, an organization loses a valuable Six Sigmaresource (i.e. Black Belt/Green Belt) on projects whichotherwise could have been deployed on a problemwhose solution is not known. Remember, if you knowthe solution just do it. You do not need a Six Sigmaproject for it.

Let us understand why and when this happens:

l Six Sigma is used to sell a solution/recom-mendation to the management which otherwisemay not get accepted. This is especially true


when the senior management is ready to doanything in the name of Six Sigma.

l Non-serious candidates have been co-opted totake up the role of Black Belts or Green Belt.And they just want to complete the projects forthe certification.

l Improvement opportunities have not emanatedfrom a proper project selection exercise andhave not been validated by a Quality Council/Process Council either at a corporate level orbusiness unit level.

l The organization’s focus is on the quantity ofprojects instead of quality of projects; as a resultpeople take up any projects.

l Projects on completion (includes solutions) arenot being validated by the Head of Six Sigmaor Master Black Belt.

To ensure the above does not happen all projectstaken up for implementation should have been vali-dated by a Quality Council. Also, when the companyis huge and the number of projects go up, it may notalways be possible to get all the projects validated bythe Quality Council at the corporate level. In such acase, ensure that a Quality Council is created at thebusiness unit/departmental level which functions as theQuality Council at the corporate level. All projects ofthat business unit/department should then be approvedby the business unit Quality Council. An organizationcould also have a Process Council which decides andvalidates the projects which are taken up for improve-ment. After the approval of these councils, it would

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always make sense for the Six Sigma infrastructure teamto run the projects through a filter, the details of whichhave been discussed in Lesson 35.

Projects wherein the solutions have been force-fittedcan be found out with a bit of probing from the qualityof data and analysis during the projects. So it isimportant that the Head–Six Sigma or Master Black Beltshould go through each project and do a detailedvalidation.

Remember, the worst thing to happen is whensolutions are being force-fitted into Six Sigma methodol-ogy. It clearly indicates that all is not hunky-dory inSix Sigma implementation. The suggestion here is toimmediately find out why this has been happening andput in place corrective actions.

Six Sigma Takeaway

When solutions get force-fitted in Six Sigmamethodology, find out why this has been hap-pening and whether it is a symptom of any otherorganizational problem.


Lesson 60

The Human Resource Department cannot be a

sleeping partner in Six Sigma deployment

Since people are central to Six Sigma methodology, itis essential that the human resource department getinvolved in it. Six Sigma is just not about tools and tech-niques but about building a culture. This is where theHuman Resource (HR) department has to play a stellarrole. It has to create a culture that facilitates Six Sigma.

The following is a list of other areas where the HRdepartment has to contribute in a Six Sigma journey:

l Hiring the required Six Sigma talent i.e. MasterBlack Belt, Black Belt and Green Belt.

l Work out a compensation and benefits packagethat facilitates recruitment and retention of thebest Six Sigma talent (Good Six Sigma talent isstill scarce in India and headhunters are afterthem).

l Design a desirable rewards and recognitionplan that allows for superior performance.

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l Ensure the best people are deployed on SixSigma projects.

l Ensure business leaders are evaluated on SixSigma deployment and project executionthrough metrics such as projects sponsored,projects completed, benefits from project,number of Black Belts/Green Belts in thebusiness etc.

l Encourage management trainees and all newrecruits to be exposed to the basics of Six Sigma.

l Make star performers among the new joineesto work on Six Sigma projects, after makingthem Black Belts or Green Belts.

l Provide support to non-technical trainingprogrammes such as change management,facilitation etc.

l Make the achievements in Six Sigma deploy-ment a criteria for taking up senior managementpositions.

l Ensure there is cross functional movementbetween Six Sigma teams (i.e. take up positionof Black Belt/Green Belt) and other depart-ments.

l Make all existing senior management staff(including the CEO) undergo a Green Beltprogramme which means they work on aproject as members to feel the rigour forthemselves.

l Regularly seek feedback from the employees ontheir voice on Six Sigma implementation.

Not to forget that the HR department has to beinstrumental in facilitating change. This is because the


institutionalization of Six Sigma is all about change.Change starts with people and it entails unfreezing ofold behaviours and refreezing new behaviours. HR hasto play a major role in convincing people as to why SixSigma should be adopted and how he/she and thecompany will benefit from it. Unless the individual iswilling to change his or her behaviour, no change ispossible. HR should also work with the Six Sigma teamto create internal support network which allows SixSigma to seep deep and wide with the organization.

Six Sigma Takeaway

Human Resource department should facilitatechange that allows Six Sigma to penetrate deepand wide within the organizational fabric.

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Lesson 61

Six Sigma framework does not act at cross

purposes in an organization�s journey towards

achieving business excellence

Quite often people have the notion that Six Sigma actsat cross purposes with business excellence models. Theybelieve that the Six Sigma initiative derails previouswork done in the arena of excellence models. This isabsolutely incorrect and it is a result of ignorance aboutwhat Six Sigma is all about.

Six Sigma can be easily integrated with businessexcellence assessment models such as the MalcolmBaldrige Award or European Quality Award or evenIndian models like CII-Business Excellence Award,Golden Peacock and Rajeev Gandhi National QualityAward.

It is important to note that business excellence modelslook at an organization from a holistic perspective whileSix Sigma is a tool for process improvement. By usingan excellence model you are actually ascertaining thehealth of a company with respect to a laid down criteria,while Six Sigma focuses on a specific process.


The excellence models have themes which propel anorganization to the trajectory of performance excellence.The themes are typically around: Leadership, StrategicPlanning, Customer and Market Focus, InformationAnalysis and Knowledge Management, HumanResource Management, Process Management andBusiness Results. The criteria can vary depending onthe excellence model we are gunning for. Six Sigma canbe an excellent enabler in achieving the desired level ineach of the criteria. It can help an organization to achieveand sustain the desired level of performance bybridging gaps identified through assessments byprocess improvements. Let me just give you a fewexamples.

The excellence models ascertain how the leadershipteam sets direction, creates customer focus and values,sets short-term and long-term goals, communicatesperformance expectations, promotes organizationalexcellence, fosters innovation and promotes organ-izational learning. Six Sigma framework can be anenabler here as it helps to understand markets andcustomer requirements, develop appropriate strategies,set improvement opportunities and organizationalresources to address performance gaps.

On the strategic planning process, the excellencemodels unfurl how a company develops strategicobjectives and action plans. Six Sigma practices can notonly be used for the process of strategic planning butcan also be an enabler in the achievement of strategicgoals. This would entail working around the coreprocesses and establishing metrics to drive results.

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To understand the customers and marketplace, SixSigma can be used to work out a solid voice of customerstrategy that aids in understanding the voice ofcustomers, markets and stakeholders.

A very important criteria of the Six Sigma method-ology is to build a process management framework.The business excellence models essentially try to unplugthe key aspects of a company’s process managementsystem. It endeavours to identify how processes aredesigned, how they meet performance requirementsand what specific measures are used to improve andmonitor these processes. Six Sigma framework enforcesthat processes are scripted not around functions butaround customers. It means laying down end-to-endprocesses which cut across functions (organizationalsilos), around customers with a measurement system.Once processes on these line are in place, the effortshould be to constantly improve the processes so thatcustomer requirements are consistently met.

The business excellence models focus on businessresults and the assessment tries to identify thecompany’s performance in areas as customer satisfac-tion, product/service performance, financial results,market share and so on. Six Sigma can help here bybuilding a performance scorecard and dashboard totrack and monitor these performances on a regularbasis. Scorecards give a bird’s eye view of criticalbusiness performance indicators as viewed by thecustomer and stakeholders. Dashboards typicallyprovide an overview of project status (and their metrics)and performance of core processes.


The above are just a snapshot of how Six Sigmaenables the achievement of excellence along the linesmentioned in business excellence models. It is not adeterrent as many people believe, but an enabler inachieving the levels of business excellence as stipulatedin many awards. Corporates should use an excellencemodel for continuously checking the health of theorganization. It is the best vehicle on which tocommence a journey to achieve excellence. Trainedassessors should carry out internal assessments everyyear to find out where they stand. The gaps that emergefrom the assessment can be plugged by leveraging thepower of the Six Sigma technique. Remember, theemphasis on statistical concepts and measurementsystem make it an excellent and credible mechanism totrack performance. In short, Six Sigma is a very effectivedeployment vehicle to achieve business excellence.

Six Sigma Takeaway

Six Sigma is an effective method to achievebusiness excellence by leveraging people, proces-ses and performance.

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Lesson 62

Once processes are improved using Six Sigma

methodology, it is important to take an all

encompassing approach to ensure that the

improvements are sustained

It has been seen that processes where Six Sigma hasbeen used for improvement often go back to its originalstate. This is not because of a lack of organizational willbut because of the fragmented nature of imple-mentation. Often process owners do not take a holisiticapproach which results in the breakdown of a processcontrol system. The following is a suggested list ofactivities which together can put in place an effectivesystem for process control:

l Clearly follow the process documentation. Atthe end of each project all process control,measurement and process control proceduresneed to be documented. Never try to skip thelaid down processes that have emanated fromthe rigour of Six Sigma.


l All people involved with the process should betrained on details pertaining to the process con-trol requirements. Training should specificallyinclude topics such as control charts, calibra-tion, measurement system and so on.

l All operators of the process should be madeaware of the product specifications and whatis acceptable to the customers. Identify theCritical to Quality (CTQ) parameters or productfeatures which directly or indirectly impactscustomer satisfaction.

l Ensure that the measurement system thatwas put in place during Six Sigma are wellcontrolled. All measurement instruments andprocesses should be fit for use and shouldbe continually checked for suitability andeffectiveness.

l The vital few Xs identified during the improve-ment of the process should be clearly known toall process operators. These are the factorswhich finally affect product quality and theoperators should know the magnitude and thenumerical sensitivities of each of these para-meters to the product CTQs.

l The sampling plan should be known to alloperators. This is required for them to knowwhere to take measurements from, how manyto take and the frequency for the same.

l Use the right control chart to detect ‘out ofcontrol’ conditions. As stipulated during theimprovement process, plot charts for bothlagging and leading indicators. What is critical

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here is that the operators should be aware ofhow to plot/draw control charts and thedecisions or rules for ‘out of control’ conditions.

l Follow the Out of Control Action Points (OCAP)when processes go out of control. OCAPs areguidelines for process adjustment. Carry out thespecific adjustments where required so thatimmediate corrections can be made whenprocesses go awry.

l Periodically audit the processes to check theperformance of the process. It shall give anindependent view on how the process controlsystem is working. Audits give the manage-ment a voice of the process and clarify whatspecific corrective actions need to be put inplace when they go haywire.

When the above are followed you will see the fruitsfor yourself. The products will consistently meet thestipulated CTQs of the product and process.

Six Sigma Takeaway

Never use a fragmented approach to processcontrol.


Lesson 63

Process audits are an integral part of Six Sigma

deployment

Developing a strategy for process audits is one of theimperatives in your Six Sigma journey. This is one ofthe most effective tools to ascertain the status ofimprovements made. Internal auditing is a proactiveprocess of identifying whether documented proceduresemanating form Six Sigma projects are being followed.Once the projects get over and improved processes aretaken up by process owners, it is these audits thatinform the management whether the process controlsare being followed. When a process is continuallyaudited for conformance, ineffective procedures areidentified and members can take corrective actionswhich they would perhaps overlook during day to dayoperations.

Other than ascertaining the health of the processes,audits yield the following benefits:

1. Increases management confidence by ensuringthat improvements are sustained.

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2. Helps to identify system and process deficien-cies.

3. Allow for members to be closely involved inimproving and refining processes and systems.

4. Helps in taking corrective actions before itbecomes a consumer issue.

5. Proactively unfurls non-compliances vis-à-visthe laid down system.

6. Supports identifying training requirements ofpeople associated with the process.

7. Ascertains gaps in documentation and mea-surement system.

8. Allow for internal consultancy and cross-fertilization of ideas—the experience andexpertise of auditors can be used to resolvechronic issues.

The audit findings are directly reported to the topmanagement team and are actually an independentevaluation of the process improvements, which theycan bank on. Auditors are the watchdogs of theprocesses on which improvements have been carriedout. The following is a list of some of the points aroundwhich audits are carried out:

l Documentation.l Data Collection Mechanism.l Measurement Systems.l Process Ownership.l Capability with the process stakeholders to

ensure improvements stay sustained.l Sigma Trends.


l Review of metrics after the projects have gotexecuted.

l Status of the mistake-proofing devices.l Learnings from the projects.

As you deploy Six Sigma, make sure a team of qualityauditors are also put in place. The audit team shouldbe an independent entity, which should directly reportthe findings to the top management of the organization.These people should also know what Six Sigma is allabout and should have been trained on audits of qualitysystems. When an organization begins its Six Sigmajourney it may be worthwhile to even outsource thisactivity, as there may not be people who are trained onSix Sigma methodology. As the journey matures andthere are a number of projects which could havehappened, put some ex-Black Belts or Green Belts on afull time audit role.

Remember, do not keep process audits on the back-burner. It is an imperative for the sustenance of SixSigma within the organization beyond the projects.

Six Sigma Takeaway

Audits are an independent evaluation to ascertainthe efficacy of process improvements carried outthrough DMAIC framework.

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Lesson 64

Use Brown Bags to make your employees refresh

their knowledge on Six Sigma tools and

techniques

As you implement Six Sigma in your organization itwould make immense sense to continuously holdsessions on various Six Sigma concepts, tools andtechniques to educate the people. This is required asyou will often experience that the rationale behind quitea few tools may not get addressed during Black Belt/Green Belt classroom sessions. For example a Black Beltprogramme may just tell you that to test the normalityof a data set, you need to use the Andersen DarlingTest and that the Minitab software may just executeactions for you. To get more details on the conceptsbehind this test, a session later always helps. This iswhere a power tool called the Brown Bag is of a hugehelp. This initiative is also required for Six Sigma teammembers who do not undergo exhaustive Black Belt/Green Belt class room sessions.

But what is a Brown Bag?


A Brown Bag refers to an inexpensive, educationalsession conducted during breakfast, lunch or snacks forpotential Black Belt/Green Belt, existing Black Belts/Green Belts, project team members and anybodyinterested in the subject. The sessions are conductedby the employees and are meant for the employees. Theobjective of this tool is to help employees with conceptsof Six Sigma and the tools involved therein, withoutgoing in for an offsite training. These sessions arevoluntary, so they should be made attractive by offeringthe finest lunch/snacks. You could even distributebooks/cassettes on relevant topics so that it acts as anincentive for the attendee.

Master Black Belts, Black Belts or any other personin the company who is adept in the topic underdeliberation, takes employees through the conceptswhile they enjoy a bite. For example, the companystatistician may hold a session on hypothesis testingfor Six Sigma leaders (i.e. Black Belt/Green Belt) andSix Sigma team members. Or you could entrust a SixSigma team member to come prepared on a topic (sayfor example—Quality Function Deployment), whichhe/she could share during a Brown Bag. I have triedthis very successfully and it yields huge results.

The following is a list of headlines which you shouldremember for a successful execution of a Brown Bag:

l Draw a 1–2 hour schedule on a regular basis(could be every week or every fortnight).

l Please do not try to cut costs here. Give themsomething to eat. If not lunch, it could even besnacks.

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l Focusing on time is essential. Do not makesessions too long. Ensure that sessions getcompleted in the stipulated time. Remember,if the session is too long people will not attendsuch sessions in the future.

l Make sure that the senior management teammembers attend a few of these Brown Bags,especially when you launch the initiative.

l Do not make the sessions too theoretical.The concepts should be laced with real lifeexamples.

When you launch a Brown Bag, the attendance maybe very poor. Do not get perturbed. Continue with theBrown Bags and do a good job. Very soon the wordwill spread and people will start attending the session.

Six Sigma Takeaway

Brown Bag sessions increase knowledge ofemployees on Six Sigma and its associated toolsand techniques, at a minimum cost.


Lesson 65

Bolster your Six Sigma journey with a Solid

Rewards and Recognition Scheme

Rewards and Recognition (R&R) should be an integralpart of an organization’s Six Sigma deployment. Thegoal of a R&R programme should be to reinforce thedesired behaviour which drives improvement andpushes the cause of Six Sigma. When employees knowtheir efforts are appreciated, it increases their self-esteem and satisfaction.

But, regular appreciation cannot become a habit byaccident. You have to create a system wherebyappreciation and thanks will be more common thancriticism and complaints. But before your script asystem, you should remember the following:

l Decide the kind of behaviour you want toencourage.

l Select the tools you think would do this best.l Create some fun and excitement.l Measure, monitor and continuously improve.

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Rewards and Recognition practices for Six Sigmadeployment broadly fall under two heads:

1. Non-monetary Reward Practices.2. Monetary Reward Practices.

1. Non-monetary Reward Practices

These rewards typically involve the feelings ofaccomplishment or self-worth an employee derivesfrom doing a good job. These do not directly deal withmoney and should be administered by the corporateSix Sigma cell of a company, with or without theassociation of the Human Resource Department.

The Non-monetary rewards are important motiva-tors for improvement and could meander around thefollowing ideas:

1A. Publicity

The most common form of recognition is publicizingachievements. Examples are:

1. Bulletin Boards,2. Newsletters,3. Formal Presentations.

1B. Tokens

These are the most common gifts used to spontaneouslyrecognize specific acts. Examples are:

1. Badges/epaulettes,2. Key Rings,


3. Mugs,4. Points/cheques (Team members receive points

for every quality improvement idea/solutionaccepted, which they can redeem for smallrewards),

5. Complimentary restaurant passes.

1C. Awards

These awards are extremely popular in most organ-izations treading on a Six Sigma journey. These awardsare open to all and should be designed in such a mannerthat employees must perceive the criteria and selectionprocess to be fair.

(a) CEO’s AwardThis is given to those individuals who exemplify thevalues that build Six Sigma such as: leadership,customer delight, involvement, team work, commit-ment, continuous improvement and significantcontribution to quality movement every day. Theseawards are generally given once a year and nominationstake place by way of an open process. Any employeemay nominate another upward, downward or hori-zontal employee who demonstrates a year’s worth ofcommitment to the Six Sigma values that the companylays down.

(b) Team AwardThis award is given to a Six Sigma project team thathas successfully carried out a project which has not onlyyielded major financial benefits but has also led to asubstantial increased customer satisfaction level. Thisaward could be given on a quarterly basis and is ideal

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when an organization is setting out on a Six Sigmajourney and has a task of making Six Sigma a wayof life.

(c) Supplier/Vendor AwardsThese awards are targeted to suppliers/vendors whohave successfully deployed and used Six Sigma forimprovement.

(d) The Invisible ChampionThis award is targeted to recognize individuals, whorepresent a strong, yet unseen force which has aprofound effect on the Six Sigma movement in abusiness or department. This award is to recognizeindividuals who contribute solid and consistentdevotion to the job and the team with their ‘behind thescenes’ efforts.

(e) Award for Maximum ImprovementThis award is given to a team/department/businesswhere there has been maximum improvement usingSix Sigma methodology.

( f ) Luncheon/Dinner with MD/Board MemberThis is awarded when a person has championed a majorSix Sigma project to successful completion. Such anaward not only reinforces how important the person’scontributions are, but also allows him/her to reminisceabout the hurdles he/she overcame and other ‘warstories’ of the project.

(g) Paid HolidayHere a team or a person is sent on a paid holiday whenthey/he/she successfully completes a Six Sigma project.


(h) Quality Based PromotionsHere the promotion is based primarily on the achieve-ment of Six Sigma goals.

(i) Best Black Belt or Green Belt ProjectThis award targets the best Six Sigma Black Belt orGreen Belt project. Projects are evaluated on criteriasuch as: Quantum of improvement, customers’ voice,cycles of sustainability, team awareness, team effective-ness, measurement system, documentation, voice ofcustomer, voice of champion, lessons learnt, auditresults etc.

(j) Best Business UnitRelevant to companies having multiple business unitsor plants or departments, this award recognizes the bestbusiness unit, plant or function; for Six Sigmadeployment. The evaluation is on criteria such as:Champion’s/business head’s/functional head’s/planthead’s/locational head’s involvement, number of SixSigma resources, quantum of improvement, number ofprojects successfully completed, Six Sigma penetrationand so on.

1D. Reward by Name

People love to hear their own names. These awardsparley the power of names into a reward system.

1. DesignateHere, a day is named after a Six Sigma project teammember. A day of appreciation is named after adeserving employee during which the team goes out

DEBASHIS SARKAR 211

for lunch/dinner to felicitate the employee beinghonoured. The departmental head personally thanksthe honouree for his/her contribution.

2. TitleAn office location is named after a team member. Forexample: The ‘Ram Taneja corridor’ or the ‘SudeshParekh’ conference room. This honour is rotated afterevery few months.

1E. Training and Development

While we should provide basic job training for everyemployee, we could use advanced skills training as anincentive. Examples include project management, BlackBelt training programme, etc.

2. Monetary Reward Practices

These are typically related to pay or compensationissues. The use of monetary reward practices have astronger motivational impact than the non-monetaryrewards. However, they should be used in tandem withthem.

l (2a) Gain SharingPortions of Six Sigma project gains in productivity,quality, cost effectiveness and so on, are sharedwith employees in the form of bonuses based on apre-determined formula.


l (2b) Profit SharingHere the organization shares some portion ofcorporate profits with employees. A quality costmodel or quality P&L (profit and loss) is often usedhere to measure this.l (2c) Variable PayHere the compensation is a combination of a guar-anteed and a variable component. The variablecomponent is tied to an individual’s goal sheets(which compulsorily has quality related goals).The amount of variable pay depends on theindividual’s achievement of agreed Six Sigmagoals.

Whatever R&R programme you select, you need toremember the following do’s and don’t’s:

· Keep the distinction between recognition andincentives clear.

· Keep the recognition criteria wide open.· Nominations should be open to all employ-

ees.· Maintain confidentiality during investiga-

tions.· An R&R celebration should be done right.

Whatever reward system you design, it should fitwith the fabric of the organization’s culture. Sometimesit is seen that high productivity might be rewardedwhen increased quality is desired. Executives mayreceive personal rewards for their team’s efforts withouthaving any proper recognition for the team. Remember,team awards are the best for organization-wide Six

DEBASHIS SARKAR 213

Sigma deployment. However, outstanding contri-butions must also be noted. The award system mustbe tailored to meet the organization’s needs andrequirements.

Six Sigma Takeaway

Effective Rewards and recognition mechanism actas propellants in Six Sigma deployment.


Lesson 66

Remember to work on mistake-proofing when

implementing Six Sigma solutions

The solutions of a Six Sigma project would beincomplete if your system does not have controls orfeatures in the product or process that prevents theoccurrence of errors. It should have a system fororganizing work that prevents errors even by a novice,allows everyone to operate without mistakes andprevents errors that are about to occur. This is called‘mistake proofing’ or ‘fail safing’ or ‘poka yoke’(Japanese usage, which when translated into Englishmeans ‘to avoid inadvertent mistakes’) which is anintegral part of making products or services. Theobjective of mistake proofing is therefore to create anorganized work environment that offers no opportunityfor inattention and errors to occur and thus preventsany quality, quantity or delay defects. The mistakeproofing methods are generally simple and are waysin which to help achieve zero defects. You do notrequire an expert in your workplace to implement

DEBASHIS SARKAR 215

‘mistake proofing’. Anyone, from a manager to the linesupervisor and the line workmen can develop a pokayoke. All that is required is an involved and empoweredworkforce or process team members who realize itsimportance and are given a little instruction on whatmakes a good poka yoke. A motivated and empoweredworkforce or process team members can flood you withideas for mistake proofing.

The challenge before Six Sigma teams is to promoteand implement poka yokes. The Six Sigma team shouldinvolve all those working on the process to facilitate asession to excavate potential poka yokes. All that isrequired is an effective facilitation by the project teamleader or the process owner. There are guidelines formistake proofing which one could use:

F Thoroughness and familiarity with problemsin your workplace is essential.

F Train and acquaint people close to the process(including workmen) on problems caused byinattention.

F Remember, just by reminding people onecannot correct inattention to errors.

F Encourage discussion on ideas proposed for‘mistake proofing’.

F There should be a disciplined follow-up onideas proposed for ‘mistake proofing’. Thisis to ensure complete implementation.

F Encourage creativity to seek new ideas. Getideas from other people.


Poka yoke devices are of two types:

1. A prevention device where the process is engine-ered in such a way that it is impossible to make amistake at all. An example of a prevention deviceis the cards used in ATMs of banks. You can neverinsert the card in a wrong fashion.

2. A detection device is where the user is informedwhen a mistake has been made, so that the usercan quickly correct the problem. Detection devicestypically warn the user of a problem, but they donot enforce the correction.

Poka yokes should be an integral part of solutionsrecommended by Six Sigma projects. They tell you thateither a process needs to be controlled so that a defectdoesn’t occur or warn you that a defect is about to occur.

Six Sigma Takeaway

Poka yoke devices are placed close to where themistakes occur so that quick feedback can beprovided to the operators so that mistakes can becorrected.

DEBASHIS SARKAR 217

Lesson 67

Be ruthless if Six Sigma objectives are not met

As you set out on a Six Sigma implementation it isimportant that the CEO and senior managementconsistently demand solid performance on the SixSigma objectives from business units or departments.Good performers should be rewarded while those whohave not done well should be penalized. When teamsare not able to deliver on the committed Six Sigmaobjectives, the leaders should come down heavily onthem. Remember, if leaders take a lenient look at theachievement of the objectives, Six Sigma implementa-tion will fail.

I am aware of an organization which set out on acompany-wide Six Sigma implementation across itsvarious business units. At the beginning of the year, allunits agreed and committed to ambitious Six Sigmatargets. It was observed that the intensity of Six Sigmaimplementation was not same all across. In businessunits where the Business Head was demanding andruthless on Six Sigma delivery targets, the implementa-tion was deep and wide. In business groups where the


Business Leader had backed away from accountability,Six Sigma implementation was weak despite having agreat team.

When it comes to Six Sigma implementation, do notexpect anything less than the best performance fromteams. If you think that you should let off people easily,if performance is not up to the mark as it is the firstyear, you are wrong. If you feel that Six Sigma requiresharmony and hence you should not be demanding, youare wrong. If your assumption is that you will creatediscontentment amongst your people if you take atough stand regarding meeting of Six Sigma targets asemployees are overburdened, you are wrong. Well,these are nothing but recipes for a failed Six Sigmaimplementation.

So as a leader, the following guidelines may proveto be useful:

l Continually enforce the Six Sigma targets.l Reward people for performance and be ruthless

when people do not meet their Six Sigmatargets.

l As a CEO, set out ambitious targets for theentire company and integrate the entireorganization through the shared vision.

l Sell the vision to the employees and describethe target in terms of organization’s and theirown potential for success.

l Once the organization-wide targets have beenset, seek inputs from employees on how toachieve it.

DEBASHIS SARKAR 219

l Six Sigma targets should have a sufficientstretch.

l Constantly give feedback on performance. Tellmembers bluntly if they have not done well orhave failed.

l Take hard decisions if teams do not performwith a sense of commitment.

l Strip poor performers of their Six Sigma respon-sibilities.

l Put the best people on Six Sigma projects andmake it compulsory that they get associatedwith Six Sigma work before talking a leadershipposition.

As the CEO or a member of the senior managementteam it is your duty to ensure that Six Sigma getsdeployed through the passion of employees while theyfeel satisfied and proud of their achievements. If youfeel that by taking a tough stand on under-performanceyou will be rubbing the Six Sigma teams on the wrongside, you are incorrect. All that you are communicatingis that Six Sigma is not important for you and that youdo not have the guts to take hard decisions. Remember,reward the performers and penalize the under-performers.

Six Sigma Takeaway

Do not dilute implementation by going soft onunder-performance of committed Six Sigmatargets.


Lesson 68

In case control charts are not being used by

process team members, replace it with pre-

control charts

One of the tools to keep the process in track onceimprovements have happened is through the usage ofcontrol charts. The control charts are used to establishan ongoing method of monitoring process performance.These charts help in quick detection of abnormalvariations in a process. While there is nothing wrongwith these charts, they are often not used because oftheir cumbersome nature. Once the Six Sigma projectsget over, they are plotted for some time and then peoplediscontinue using it.

Thus, as a suggestion, replace control charts with pre-control charts. The pre-control charts are much simplerand extremely powerful in detecting abnormalvariations in a process. They have all the advantages ofcontrol charts while being very user friendly. Foundedby Frank Scatherwaite in 1950s, the power of this toolhas not been leveraged to the fullest. The mechanics of

DEBASHIS SARKAR 221

the pre-control charts are so simple so that it can betaught to even illiterate workmen who can complete itin less than ten minutes.

Let me give you the highlights of the pre-controlcharts:

l Pre-control charts do not require data to follow anormal distribution.

l Draw two pre-control lines in the middle half ofthe specification limit (for two-sided specifica-tions).

For a Two-sided Tolerance

l Actions are to be initiated when the followingconditions exist:

Condition Actionl 2units in Green Zone Continuel 1 unit in Green and

1 unit in yellow zone Continuel 2 units in yellow zone Stopl 1 unit in red zone Stop

Similarly there are rules for pre-control charts withone–sided specifications. The objective of this book isnot to give details about pre-control charts but to


apprise that control charts are not the end of allmonitoring process performance.

Let me reiterate that there is nothing wrong in controlcharts except that it is quite cumbersome at times.Instead of letting control charts being a ritual which isnot being used regularly, replace it with a pre-controlchart which is simple and can be plotted by anyonewithout much discomfort. I have personally seen thepower of pre-control charts in a shop-floor where it wasused by workmen.

For more details on pre-control charts please gothrough Keki Bothe’s book titled World Class Quality(published by AMA COM).

Six Sigma Takeaway

Pre-control charts do not require data to follow anormal distribution or have any assumptionregarding shape or stability.

DEBASHIS SARKAR 223

Lesson 69

Six Sigma is not an off-the-shelf solution to

organizational pains

Six Sigma is not an off-the-shelf solution which removesall organizational pains. It does not guarantee successand requires a whole lot of things which need to bedone for its success. Remember, the success or failureof Six Sigma does not depend on the methodology buthow it is implemented. It is important to know therecipes for its failure in a company.

l Six Sigma does not have the active support ofthe CEO and senior management.

l Six Sigma deployment does not have aneffective strategy.

l Middle management does not have the buy-in.l Six Sigma is treated as another of those quality

initiatives or training programmes which arriveand disappear.

l Projects are not tied to business imperatives.


l Huge unmanageable projects are taken upwhich take more than 6–8 months to complete.

l Failure to recognize the need and importanceof infrastructure.

l Trying to commence on a journey without thesupport of an internal or external person whoknows the methodology well.

l Benefits and savings are never quantified.l Members from the quality team are only

deployed on Six Sigma projects.l Projects are being done for the sake of it.l Lack of the right guidance from the consultant

during early days of implementation.l Six Sigma project execution outsourced to an

outside consultant.l Support from the human resource department

is either minimal or they are indifferent.l Black Belt/Green Belt training programmes do

not have the desired and relevant content.l Cultural elements to implementation are not

addressed at all.l Focus of Six Sigma is only on cost reduction.l The company does not have a consistent and

systematic method to get in the voice ofcustomers.

l Six Sigma implementation is not supported bya business process framework but leaders viewit as a set of functions and silos.

l There is no mechanism of rewards and recogni-tion to reinforce the desired behaviours.

l Failure to manage change.

DEBASHIS SARKAR 225

l Management is not actively involved in SixSigma but is merely committed to the allocationof resources.

l Six Sigma initiative is seen as a series of projectsinstead of focusing on process management andinstalling rigour and discipline in all processes.

l Process improvement is not considered to be apart of the job description.

l Organization believes that better quality comesabout through more sophisticated statistics.

To summarize, Six Sigma improvement can beelucidated by the following equation:

Right Tools + Right People + Right Processes +Management Commitment = Expected Results

Six Sigma Takeaway

Don’t think Six Sigma is an off-the-shelf solution,it requires a number of enablers and supportsystem to make it successful.


Lesson 70

Statistical thinking should be a way of life in

a company working towards Six Sigma

deployment

Why is statistical thinking important in an organizationworking on Six Sigma deployment? You could also bewondering as to why non-statisticians should botherabout statistics. You may even suggest depending onMaster Black Belts (MBB) and Black Belts (BB) to handleall the statistical elements of Six Sigma implementation.While every company should depend on BBs and MBBswho act as resources on statistical concepts, ‘statisticalthinking’ is something that is more fundamental whicheveryone directly or indirectly involved with a SixSigma journey should possess. It is both a competenceand a mindset which should result in making ‘statisticalthinking’ a way of life.

But, what is statistical thinking?Statistical thinking is the process of using data to

understand processes, problems and solutions. The coreelements of statistical thinking are generation of data,

DEBASHIS SARKAR 227

extraction of relevant information from data, andutilization of information for optimal decision making.Thus, statistical thinking is well suited as a basis forcontinuous improvement of processes and products,or continuous quality improvement. It uses simple,mostly graphical, statistical tools. This enables thefrontline staff to apply statistical thinking in everydayprocess management and improvement. Remember,statistical thinking is a philosophy of learning andaction that is based on the principles that (1) all workcan be regarded as a system of interconnected processes,(2) all processes exhibit variation, and (3) understandingand reduction of variation are keys to success. Theprimary benefit of statistical thinking is better qualityat a lower cost. However, there are many other benefits:Internalization of the need for good data and measure-ments to make decisions; understanding and reductionof variability; stable and predictable processes;quantitative determination of process capability;identification of improvement opportunities; and ameans of communication between operators, manage-ment, and support.

Statistical thinking consists of five steps, each of thembeing totally dependent on the preceding step:

1. Collection of good data. 2. Visualization of the data.3. Analyzing the data. 4. Making process stable andpredictable. 5. Improvement of processes.

Companies have to invest in training their employees(those who are not exposed to Green Belt/Black Belttraining programme) on statistical concepts that willhelp in breeding statistical thinking.

The purpose of statistical thinking and techniques isto make informed decisions. An informed decision is


one that relies on good data, not hunches, engineeringintuition, or data-less brainstorming. In your Six Sigmajourney, you would make use of a number of statisticaltools; and a foundation of statistical knowledge will notonly help you to understand their basis but will alsohelp you to use them properly.

Remember, when statistical thinking becomes a wayof life for employees, an excellent foundation forcreation of Six Sigma change agents is being built.

Six Sigma Takeaway

Statistical thinking should be integral to compa-nies traversing on a journey towards Six Sigmadeployment.

DEBASHIS SARKAR 229

Lesson 71

Six Sigma project team leaders need to have

focus, good relationships, communication skills,

ingenuity and excellent project management

skills to translate the charter into results

The Six Sigma project team leaders (Black Belts) have ahuge responsibility of ensuring that projects are notonly successful but are also completed on time. Theyshould have good project management skills and workwith team members and process stakeholders to achieveagreement and forward movement. The project leaderalso creates relationships, networks and mobilizesrequired resources to deliver project outcomes. SixSigma project management is an integrative function—an action or failure in one end will have an impact onother project areas. The onus is on the project leader tointegrate various management processes and interac-tions for effective project delivery. My recommendationis that Black Belt and Green Belts should be takenthrough a programme on project management toeffectively apply skills and behaviours to improve


project performance. This is in addition to the BlackBelts’ or Green Belts’ class room sessions.

The following is a list of project management compe-tencies that Six Sigma leaders should possess in orderto translate project goals to actions:

l Exhibit a ‘can do’ attitude.l Make all decisions in the interest of customers

and stakeholders.l Work well with other people and be considerate

about his/her feelings with their views andopinions.

l Display a positive attitude towards teammembers, colleagues, management andstakeholders.

l Is viewed by others as being approachable andopen.

l Accepts accountability, knows boundaries anddisplays ownership.

l Always participates in group discussions andmeetings.

l Has the ability to defuse when necessary.l Shows flexibility and adaptability to change

where appropriate.l Priorities through balancing commitments and

priorities.l Had the ability to handle stress and pressure.l Able to communicate with people at all level.l Has the ability to communicate effectively in

writing and orally.l Written communications are concise and easily

understood.l Can construct high quality reports and project

documentation.

DEBASHIS SARKAR 231

l Shows leadership capabilities and leads byexample.

l Uses appropriate coaching methods for trainingprocess team members.

l Promotes a ‘can-do’ attitude.l Outline the roles and responsibilities of all team

members.l Develop contingency plan.l Has the ability to inspire a shared vision.l Commitment to and demonstration of ethical

practices.l Provides the substance that holds the team

together in common purpose towards theobjective.

l Has a hardy attitude and takes problems instrides.

l Demonstrates trust in others through actions.l Able to challenge, inspire, enable, model and

encourage.l Delegates and demonstrates trust in others

through actions.

Remember, you may be great in tools but lack ofproject management skills can mar the project. Whenyou are just focusing on tools you are just dealing inquality management, but dimensions of cost, scope andtime take you to the realm of project management.

Six Sigma Takeaway

Creating a challenging and meaningful projectwork environment for team members, is animportant task of all Six Sigma project leaders.


Lesson 72

Do not be complacent if processes have reached

at Six Sigma levels

Often people wonder as to what happens if processeshave reached Six Sigma levels. Well, first of all it is atall order to reach Six Sigma levels in your processes.However, if processes have been delivering at Six Sigmalevels do not be complacent. Ensure that this issustained on an ongoing basis. Once the processperformance is sustained, consider raising the qualitybar. Benchmark with the best-in-class or the global best,and take it as the next performance goal. Technicallyspeaking this would mean revisiting your specificationlimits and commencing on a journey towards achievingit. To me Six Sigma philosophy is about constantlymoving the quality bar and working towards it. A SixSigma organization is not just one which applies SixSigma methodology but one that is fully and culturallySix Sigma.

I personally believe that no matter how manytimes a process is improved, there will always beopportunities for improvement. You will also see that

DEBASHIS SARKAR 233

as processes are continually improved they becomemore flexible and amenable to improvement. So neverbe complacent, proactively look for opportunities forimprovement.

Beyond Six Sigma implementation, you could steeryour organization towards business excellence. Yourendeavour should be to enmesh various qualitymethodologies and install an integrated qualitymanagement system that moves your companytowards business excellence.

So before you claim that you have leveraged thecomplete power of Six Sigma, think twice. Institu-tionalising the Six Sigma approach takes time. Just donot consider it to be another process improvementmethodology but a holistic model for changing the waythe people in the company think. Involve every functioncutting across hierarchies in the journey, comprisingmembers from sales, production, distribution,marketing, purchase, finance, corporate planning andso on. Use the power to Six Sigma not just in processimprovement but also in process management andprocess creation. And all these do not happen in a year.They require time and take years to seep within anorganization. Do not get into the trap of looking for anew methodology without squeezing the best fromSix Sigma.

Six Sigma Takeaway

Six Sigma philosophy is about constantly movingthe quality bar and working towards it.


Index

1.5 Sigma shift, 133–357 QC tools, 161

acceptability, 58accommodation, 147accomplishment, 16accountability, 19, 218, 230action, 101, 150–51activity based costing method,

66, 108adeptness, 38agenda, 100alignment workshop, 11Allied Signal, 5, 91Analysis of Variance (ANOVA),

40, 88Analyze, 87appraisal costs, 137aptitude, 40assertiveness, 146–47assumptions, 70assurance, 166audio-visual material, 31audit findings, 37audits, auditors, 199, 201automation, 60award(s), 208–10; for maximum

improvement, 209awareness, 166, 185

background information, 100bank, end-to-end process, 153–54barriers to implementation, 32,

35behaviour, 125, 192, 206, 229behavioural skills, 52benchmarking, 43benefit package, 190benefit tracking, 25benefits, 30, 93–95best business unit award, 210billboards, 31Black Belts (BBs), 15, 16, 19–20,

26, 29, 31, 36, 38, 39, 43, 53,54, 56, 68–69, 70, 71, 94, 96,101, 104, 112, 159–60, 161–64,169, 171, 177–78, 183–85, 187,188, 190, 191, 202, 203, 204,210, 224, 226, 229–30

booklets, 30Bossidy, Larry, 5Bothe, Keki, 46, 222bottom line, 2, 33, 91bottom-up, 102brainstorming, 107Breakthrough Management

Group (BMG), 162, 163brochures, 30Brown Bag, 203–5

DEBASHIS SARKAR 235

bulletin boards, 207business, 1, 111business case, 70, 86business excellence, 233business excellence models, 193,

195, 196business goals, 62, 66, 69business heads, 9, 11, 26, 217business imperatives, 223business improvement, 6, 30business leader, 218business objectives, 3, 90business pains, 159Business Process Management

System (BPMS), 98business results, 194, 195business strategy, 4, 6Business Unit Heads, 18

CEO award, 208CII-Business Excellence Award,

193calibration, 137capability building, 26career goals, 40cash flow improvement, 92certification, 16, 162champions, 10, 15, 16, 17, 18–20,

36, 39, 41, 50, 52, 60, 71, 86,94, 104, 107, 174

change, 14change facilitators, 17change management, 15, 43, 224charts, 59Chief Executive Officer (CEO), 5,

6, 18, 19, 56, 57, 114, 140, 159–60, 178, 217, 218, 219, 223

Chief Financial Officer (CFO), 18,92, 93–94

Chief Human Resource Officer,18

Chief Process Facilitator (CPF),171–73

Chief Risk Officer, 18chronic issues, 1class of the process, 82–85coaching, 38, 39commitment, 5, 28, 230, 231communication, 26, 31, 40, 59, 94,

99, 166, 230communication framework, 10communication plan, 18communication skills, 229–31compensation, 190competition, 66, 146–47competitive information, 12Complaints, 107confidentiality, 63, 213conflict avoidance, 147conflict resolution, 146–47conformance, 200consequential metrics, 174, 176consultant(s), consulting, 38, 39,

40, 46–48, 224; costs, 184;selection, 42–45

contests, 31contingency plan, 231continual improvement trajec-

tory, 166, 167continuous improvement, 13Control, 89control charts, 89, 198, 220–22control plans, 43cooperation, 146–47core business processes, 62–64,

65–66, 69, 140, 165, 195core team, 11corporate planning, 233


corrective actions, 12, 199, 201cost(s), 44, 91, 103, 108, 183–84cost avoidance, 2cost effectiveness, 211cost of product quality (COPQ),

108, 139Cost of Quality, 108cost reduction, saving, 58, 91,

156, 157, 186, 224cost takeout projects, 156–57courier company, end-to-end

process, 155creativity, 215credentials, 43, 47Critical to Quality (CTQ), 86, 124,

198–99critique, 50cross-functional movement, 191cultural imperative, 6culture building, 10culture, cultural issues, 6, 13, 32,

34, 213Customer, 107customer(s), 1, 11, 12, 57, 64, 75–

78, 80, 87, 111, 112, 124, 149,155, 153, 230

customer advisory panel, 77customer complaints, 37customer focus, 167, 194customer interaction, 145customer loyalty, 58customer needs/expectations,

72, 117, 148–49, 155, 194customer responsiveness, 4customer retention, 2, 157customer satisfaction, relation-

ship, 2, 3, 4, 63, 66, 69, 79, 81,92, 157

customer strategy, 195

customer waiting time, 181cycle time reduction, 69cynics, 9

Darling, Andersen, 203Dashboard Manager, 27, 39, 59–

61dashboards, 26–27, 59, 61, 94, 195data, 104, 227–28data collection mechanism, plan,

87, 89, 201data distribution, 181–82defect, 1, 86, 117, 118, 124, 148–

49Defect Per Million Opportunities

(DPMO), 117–22, 123–26defects per unit (DPU), 130–31defects reduction, 69define, 86deployment hierarchy, 16–17deployment platoon for execu-

tion, 14–17deployment strategy, 13Design of Experiments (DOE),

40, 43, 47, 88design failure, 138designate, 210–11detection device, 216distribution, 233DMAIC (Define–Measure–Ana-

lyze–Improve–Control) ,model, 2, 13, 36, 86, 89, 110,111

documentation, 201documented quality systems,

165downgrading, 138DPMO, See Defect Per Million

Opportunitiesdrive, 33

DEBASHIS SARKAR 237

economic crisis, 4effect, 21effectiveness, 3, 8, 12, 49–51, 64,

67, 79, 80, 102, 198efficacy of the process, 79–81, 202efficiency, 12, 67, 79, 80, 81, 169efficiency improvement, 157electronic surveys, 76Employee Field Reports, 77employee(s), 145; involvement,

46–48empowerment, 215end-to-end projects, 57, 153entitlement, 141, 142escalations, 33European Quality Award, 193evaluation, 49–51events, 31excellence, 13, 63execution, 6exhibits, 31expectations, 7external consultants, 36, 177External Failure Costs, 138–39

facilitation, 38, 39, 40, 172–73facilitation skills, 161, 171fail safing, 213failure costs, 138Failure Mode Effect Analysis

(FMEA), 40, 54feedback, 50, 191, 216, 219; from

customer, 75, 76, 78finance functions, 158financial accountability, 2First Pass Yield, 69, 127–28, 129flexibility, 44focus group activities, 107focus group interviews, 77

formal presentations, 207frustration, 151functional boundaries, 40, 53functional heads, 9, 11, 18, 26fundamental pillars, 25–26

gain sharing, 211–12Galvin, Bob, 5General Electrics (GE), 5, 46, 90global customer surveys, 75–76goal statement, 70goals, 3, 86, 173, 212; long-term,

194Golden Peacock Award, 193grandmasters, 17graphs, 59Green Belts (GBs), 16–17, 20, 26,

29, 31, 36, 39, 53, 54, 56, 68–69, 70, 71, 96, 101, 112, 159–60, 161–64, 171, 183, 184, 185,187, 188, 190, 191, 202, 203,204, 210, 224, 229–30

group discussions, 101group process, 172growth, 58

hard savings, 91–92Harry, Mike, 46Head of Quality, 112, 114helpdesk, 25helplessness, 151high density poly ethylene

(HDPE), 175Honeywell, 91hotel, opportunities of defect,

125Hughes, Richard, 146human resource(s) (HR), 158,

190–92, 207, 224


human resource management,194

Human Resource (HR) policy,160

ice creams, manufacturing pro-cess, 22–23

Ideation, 107implementation, 28, 32–34, 38,

42, 54, 56–58, 106, 189; moni-toring, 24

implementation strategy, 88; as-sessment, 44

Improve, 88,improvements, 14, 19, 28, 33, 37,

52, 53, 188, 206, 232–33improvement projects, 65–67, 79,

86, 153–55incentives, 212independent variable, 21Indian Institutes Management

(IIMs), 159Indian Institutes Technology

(IITs), 159information, 227information analysis, 194information technology (IT) ex-

pert, 54, 71infrastructure, 18, 27, 39, 109,

166, 224infrastructure pillars, 24, 27ingenuity, 229–31initiative, 26, 28innovation, 194inputs (Xs), 23inspection, 137–38institutionalization, 46, 48integration, 80internal capability, 48

internal consultancy, 201Internal Failure Costs, 138internal-audits, 33inter-personal skills, 40invisible champion, 209involvement, 97ISO, 162ISO 9000, 165ISO 9001: 2000, 98ISO 9001: 2000 certification, 165,

167ISO implementation, 166ISO preaching, 47

Jones, Daniel, 168–69

Kaizen, 169key business processes, 62Key Process Input Variables, 21Key Process Output Variables, 21knowledge management, 26, 194Knowledge Management (KM)

Framework, 186

lead time, shortening, 69leader, leadership, 6, 17, 52, 144,

167, 191, 194, 219leadership capabilities, skills, 52,

231Leadership Council, 32leadership training, 15leaflets, 31lean manufacturing, 168–69lean six sigma, 168–70lean thinking, 168–70learning, 26, 88long-term capability, 140–41luncheon/dinner with MD/

Borad member, 209

DEBASHIS SARKAR 239

macro processes, 62mail surveys, 76Malcolm Badridge Award, 193management, manager, 3, 50–51,

144, 199, 225management confidence, 200management process, 1‘management by remote control’,

144, 145management review, 166management trainees, 191manual data presentation, 61manufacturing, 3, 96manufacturing organization, 138market, marketing, 158, 233, 194market conditions, 4market focus, 194market share, 63marketing manager, 28–31marketing skills, 29Master Black Belts (MBBs), 15,

16, 25, 27, 36, 38–41, 95, 112,161, 178, 182, 183–84, 189, 190,204, 226

Measure, 87measurement systems, 3, 10, 12,

39, 60, 79, 87, 117, 124, 167,198, 196, 201

meeting(s), 25, 99–102; objec-tives, 100

memo, 99mentoring, 38, 39methodology, 36, 65metric, 124Minitab software, 10, 203mission critical processes, 107mission, 49, 62mission-critical processes, 62mistake proofing, 43, 89, 214–16

morale, 144motivation, 215Motorola, 5, 46moving process, 116Multiple Environment Over

Stress Testing, 43Multivariate Analysis, 43

networks, 229new, declining and lost customer

survey, 77non-compliance, 201non-normal data, 182non-technical training program-

mes, 191non-value added activities, 128,

129nurture project sources, 26

objectives, 4, 6, 33, 49, 100, 217operational pillars, 24–25opportunities, 117, 125organization, 37, 155–56organizational assessment, 11, 13organizational goals, 7, 63organizational learning, 194organizational objectives, 5, 12organizational performance, 39organizational quality objec-

tives, 166organizational resilience, 4organizational strategy, 19, 49organizational will, 197Out of Control Action Points

(OCAP), 199outcome, 79, 81outputs (Ys), 23, 79ownership issues, 14


package, 44paid holiday, 209–10paragons, 17participation, 99–100parts per million (ppm), 133–34passion, 33pay back, 90people, 4, 196performance, 74, 117, 123, 150,

174, 217, 219performance assessment, mea-

surements, 33, 97performance scorecard, 195performers, 159personal interviews, 76personal selling, 30pictures, 59planning, 172Poisson Distribution method,

130‘poka yoke’, 214–16population sampling, 116positive attitude, 230posters, 30potential core processes, 63potential problems, 152power tools, 169precision, 170pre-conceived solutions, 187–89pre-control charts, 220–22precursors, 150–52presentations, 31prevention costs, 137prevention device, 216price, 75primary metrics, 174–76probability density, 130problem(s), 226; identification,

151–52; root causes, 88

problem solving methodology,tools, 1, 13, 47, 161

problem statement, 70, 72–74, 86procedure, 200process, processes, 1, 4, 12, 65–

66, 74, 79–82, 108, 111, 122,136, 155, 124, 182, 196–99,214–16, 226, 227, 232–33; in-terconnected, 227

process audits, 26process capability, 10, 88, 140–42process control system, plan, 89,

197, 199process council, 26, 34, 188process deficiencies, 201process documentation, 197process expert, 53–54Process-Grid, 82process improvement, 1, 12, 175,

193, 194–95, 225, 233process mapping, 54, 86, 87, 88process metrics, 59, 61process operators, 53process owners, ownership, 11,

33, 53, 66, 71, 98, 174, 197, 201process parameters, 97process performance, 69, 232process predictors, 21process sampling, 116process team, 220–22process time, 169production, 233productivity, 169productivity improvement, 2,

157products, 148, 199Profit Center Heads, 18profit centers, 11profit sharing, 212

DEBASHIS SARKAR 241

Project, 107project(s), 3, 40, 39, 49, 57, 95, 223project charter, 70–71, 86, 90project cycle, 94project deployment cost, 103project documentation, 230Project execution, 53, 93project goals, 50, 173project leaders, 16, 229–31project limits, 103project management, 2, 10, 229–

31project management framework,

89project management skills, 231project milestones, 71project scope, 70project selection, 10, 42project tracking mechanism,

tracker, 18, 24, 185–86promotional materials, 30proofing measures, 89prototype, 88publications, 31publicity, 207purpose, 100

quality, quality issues, 2, 3, 6, 75,97, 103, 158, 214, 232, 233

quality adulteration, 134quality based promotions, 210quality control, 137quality costs, 33, 108, 136–39Quality Council, 18, 27, 32–34,

42, 57, 188quality culture, 166quality frameworks, 14Quality Function Deployment,

40, 43, 160, 204

quality improvement, 14, 106,172

quality leaders, professionals, 1–2, 11

Quality management, 137Quality Management System

Compliances, 37Quality Management System,

114, 165–67quality programme, 3quality reviews, 37quizzes, 31

Rajeev Gandhi National QualityAward, 193

rational sub-groups, 182rationale, 5references, 42–43refreezing, 192regression analysis, 88regular reviews (timeline re-

views), 35–36relationships, 229–31representative from CEO’s office,

54reputation, 42–43resistance to change, 15resources, 7, 183revenue generation, 2revenue, 57, 91review architecture, mechanism,

18, 25review progress, 7reviews, 10, 19, 25, 35–37, 166rewards and recognition, 10, 12,

18, 25, 160, 185, 190, 206–13,224; monetary, 211–13; byname, 210–11; non-monetary,207–11


rigour, 9, 13, 197risks, 71roles of people involved in Six

Sigma, 24Rolled Throughout Yields (RTY),

129–32root cause analysis, 169

sales, 63, 158, 233sales volumes, 92sample size, 115sampling, 116sampling plan, 198sampling strategy, 87, 115savings potential, 178savings, 93, 94Scatherwaite, Frank, 220scope, 104scorecards, 195secondary metrics, 174–76self-discovery, 173seminars, 31senior management review, 26senior management team, 7, 8–

10, 15, 27, 66, 90, 191, 179, 217service effectiveness, 81service organization, six sigma

methodology, 96–98services, 3, 96, 148shareholders, 64sharing, 147shop floor, 144short-term capability, 140, 141,

142short-term paybacks, 91Sigma levels, 82–85Sigma trends, 201Six Sigma, 1–3, 65–67, 90–91, 94,

96, 101, 112, 142–43, 153, 158,

159, 180, 181–82, 173, 193–96,202, 203, 223–25

Six Sigma Academy, 17Six Sigma advocates, 9Six Sigma as a product to em-

ployees, 28–31Six Sigma Awareness Work-

shops’, 30Six Sigma Black Belt training, 179Six Sigma Committee, 32Six Sigma deployment, 10, 13, 25,

26, 30, 39, 42–45, 50, 56–58,75–78, 90, 165, 177, 179, 183–86, 191, 206, 214

Six Sigma implementation, 35,217, 233

Six Sigma methodology, 6, 189,195, 197–99, 202, 209

Six Sigma Plus, 91Six Sigma project leader, 53Six Sigma Project Management,

35Six Sigma project, 19–20, 157Six Sigma query meetings, 31Six Sigma teams, 49–51; compo-

sitions, 52–55skills, 40, 47, 172soft savings, 91–92solutions, 226special causes, 141sponsor, 52stability, 222staffing costs, 183stakeholders, 57, 201, 230standardization, 60stand-up meetings, 36statistical thinking, 226–28statistical tools and concepts, 36,

40, 196

DEBASHIS SARKAR 243

statistician, 44, 182statistics, 10still population, 116strategic objectives, 3, 36, 111strategic planning, 194strategy, 65, 223sub groups, 181, 182sub-processes, 62, 63success stories, 10, 30Suggestion Scheme, 108suitability, 198suppliers, 11, 12, 33, 87supplier-vendor award, 209supply chain, 69symptoms of problems, 21, 150,

152, 189synergy, 19

targets, 218teaching, 38team, 36, 171, 172, 192team award, 208–9team conflicts, 15team dynamics, 52team leaders, 43team membership, 71team process, 172team product, 172technical knowledge, 52technical reviews, 36telephone interview, 76title, 211tokens, 207–8Tollgate Reviews, 36–37top line, 1top management, 19, 42, 59, 63,

92, 144, 159Total Productive Maintenance

(TPM), 143

Total Quality Management(TQM), 2, 47, 162

Toyota Production Systems, 168training, 16, 39, 97, 178, 198training and development, 12,

211training costs, 184training programme, 223traits, 49–50transactional surveys, 76transition, 111trust, 231turn around time, 181

under-performance, 219 re-wards, 219

‘Unit’, 117, 118unmanageble projects, 224

value, 56–58value engineering, 43values and attributes, 80variability, 227variable pay, 212–13variation, 1videotapes, 31vision, 6, 32, 33, 62, 218visualization, 227volume, 56–58

‘warusa kagen’, 151waste elimination (non-value

added activities), 168waste reduction, 67Welch, Jack, 5what-can-go-wrong analysis,176white belts, 17


Womack, James, 168–69word-of-mouth referral chan-

nels, 30workforce, 215workplace, 144, 169World Class Quality, by Keki

Bothe, 222

Xs, 87, 198; critical, 22, 23; con-trollable and uncontrollable,22

yellow belts, 17yields, 87, 127–28, 130

zero-sum strategy, 147

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Lessons in six sigma viny

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