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Six Sigma
2015 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ('KPMG International'), a Swiss 1
entity. All rights reserved.
What is Six Sigma?
Metric A metric that demonstrates quality

levels at 99.99967 per cent
performance for processes
A benchmark for product

Benchmark and process capability on
a quality basis
. . . Effectively manage process performance
Sigma is a letter in
the Greek alphabet
A practical application of statistical
Tool tools to help measure, analyze,
improve, and control the processes
A commitment to customers
Commitment to offer the highest quality,
reduced cost products
Multiple meanings of Sigma
1 Management 2 Process 3 Standard

philosophy capability deviation
View processes/measures A statistical measure of a The Greek symbol sigma

completely from a customer processs ability to meet which means
point of view customer requirements standard deviation.
(CTQs) is a measure of variation
Continual improvement
Process Sigma= 6s
equates to 3.4 defects per
Integration of quality and million opportunities
daily work
Satisfying customer needs

profitably
Evolution of Six Sigma-Motorola
In 1980,
Motorola -Survival faced survival
problem with fierce Japanese
competition
CEO Bob Gelvin was

determined not to loose the
parental company Motorola
Bill Smiths solution was

to reduce defects from 30,000 ppm to
3 ppm(in eight years )
The goal was 68 per cent

improvements for every employee every
year, in all units of Motorola (10 fold
improvements every two years).
There was a strong emphasis on training with

USD300 million
The return was USD800 million within

two years Global benchmarking with Bandit
programme
Six Sigma
2015 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with
KPMG International Cooperative ('KPMG International'), a Swiss entity. All rights reserved.
Six Sigma
Six Sigma
Six Sigma is a disciplined, data-

driven approach and
methodology to help eliminate
defects in a processfrom
manufacturing to transactional,
and from product to service.
2015 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with GO HEADER & FOOTER TO EDIT THIS TEXT 5/19/2015 8
Six Sigma - Its significance
A philosophy Make fewer mistakes in all that we do
A statistical
Help gauge adequacy of product, process and services
measurement
A metric A measuring system
A business
Good quality can help reduces cost
Strategy
A structured approach to help continuous improvement
Six Sigma - Its significance
98.930 per cent 99.99966per cent

good (3.8 Sigma) good (6 Sigma)
20,000 lost articles of mail/ hour Seven articles lost per hour
Unsafe drinking water for almost 15 One unsafe minute every seven
minutes each day months
5,000 incorrect surgical operations 1.7 incorrect operations per week

per week
Two short or long landings at most One short or long landing every five
major airports each day years
200,000 wrong drug prescriptions
each year 68 wrong prescriptions per year
No electricity for almost seven hours One hour without electricity every 34
each month years
The paradigm shift
Speed Quality
+
Cost Changing paradigm
Speed
+
Quality Cost
Quality the cause not the effect
Quality v/s cost
25 25
Traditional view Japanese view
20 20
15 15
Cost
10 10
5 5
0 0
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
Quality
Sigma and PPM are correlated
Six Sigma Part per Million (PPM)
2 308000
3 66800
4 6210
5 230
6 3.4
Mumbai's Dabbawala are at more than Six Sigma level
The driving need for Six Sigma
The basic objective

1000000
100000
10000
1000 Our
Process
100
10
1
2 3 4 5 6 7
Sigma scale of measures
Why Six Sigma?
Impact on cost of poor qual
20
Percent of 15
sales
10
PPM 3 233 6210 66807 308537 5000000

SIGMA 6 5 4 3 2 1
Work on low hanging fruits first
Sweet fruit - Design for Six Sigma 6s
5s
Bulk of fruits process characterization
4s
Low hanging fruits 3s
Logic and intuition quick hits 2s
Increase in Sigma value - helps in an exponential decrease in rejections
Six sigma team roles and responsibilities
Champion Master Black Belt Black Belt Green Belt
Leadership: Teach 6 Lead 6 project Learn/Use 6

overall initiative teams Tools
Mentor black
Project funding belts Measure/analyze Work on Six
and resources Sigma Projects
Monitor BB Improve/control
HR: rewards and projects Part of The Job
recognition
Work on pipeline
projects
A resource pool
Six Sigma
Deming on processes
Eighty-five percent of the

reasons for failure to meet
customer expectations are
related to deficiencies in
systems and process... rather
than the employee.
The role of management
Is to change the process
rather than badgering
individuals to do better.
Six Sigma approaches
Six Sigma
is applied on pain problem areas of
the organisation for improvements
Following approaches are adopted:
DMAIC
For existing process
DMADV
For new process
DMAIC Vs. DMADV
Define
project
scope
Does
Process
exist?
Measure Measure
Analyse Analyse
DMADV
DMAIC
(DFSS)
Design Improve
Verify Control
DMAIC methodology
Define
Selection of performance characteristics critical in meeting customer
requirements
Measure
Creation and validation of a measurement system
Analyse
Identification of sources of variation from the performance objectives
Improve
Discovery of process relationships and establishment of new procedures
Control
Monitoring of implemented improvements to maintain gains and help ensure
corrective actions are taken when necessary
DMAIC methodology
Define
Initiate, scope and plan the project
Measure
Understand customer needs and specify the CTQs
Analyse
Develop design concepts and high-level design
Design
Develop detailed design and control/test plan
Verify
Test design and implement full-scale processes
For each producr or process CTQ
Define, measure, analyse, improve and control
Y = F (X)
Define 1. What are customer expectations of the process
Measure 2. What is the frequency of defects?
Analyse 3. Why, when and where do defects occur?
Improve 4. How can we fix the process
Control 5. How can we make the process stay fixed?
Define
1 Determine the project CTQS 3 Charter

Identify your customers Business case
Gather VOC Problem and and goal statement
Organise VOCs Project scope
Prioritise VOCs Milestones
Translate VOC to CTQs Roles and and responsibility
2 Define the project 4 Map the process

In-frame/out-frame Process operational definition
15 word flip chart Benefits of process mapping
Backward imaging SIPOC model
Levels of mapping
Mapping guidelines
Deliverables: CTQs, identified, charter, SIPOC
DMAIC Methodology
Define Measure Analyse Improve Control
Team Identify Process

chartering project CTQ Mapping
The business case Translate customer Business

needs into specific process mapping
Problem and requirements.
goal statement
Project scope
Milestones
Team roles
What is to be defined?
The problem statement: What is problem/improvement scope with baselines and

directions of improvements? What is expected savings/loss?
The goals and objectives- Targeted improvements, directions, deadlines, progress

measures
Milestones- as per the DMAIC cycle major checkpoints and target completion dates
Roles and responsibilities, resource estimates- GB, BB, champions, time commitments
etc.
Six Sigma
Team charter
Acharter is a
document that provides
purpose and goals for an
improvement team
Five major elements of a charter
Business Explanation of why to do this project

case
Problem and
Roles goal
statements
People, expectations, Description of the

responsibilities problem/opportunity and
objective in clear, concise and
measurable terms
Charter
Key steps and dates to Project Process dimensions,

achieve goal Milestones available resources
Scope
Write the problem statement
Problem definition
What is the problem?
Undesirable effect
Gap between the desired and actual
Problem area/drudgery/cumbersome activity

Leads to rework
The business case
Why is this project worth doing?
Why is it important to do now?
What are the consequences of not doing this

project?
What activities have higher or equal priority?
How does it fit with business

initiatives and targets?
Six Sigma
Problem and goal

statements
The purpose of the

problem statement is to
describe what is wrong
The goal statement then

defines the teams
improvement objective
The problem statement
Checklist of pitfalls
Is the problem based on observation (fact)

or assumption (guess)?
Does the problem statement prejudge a root cause?
Can data be collected by the team to verify

and analyze the problem?
Is the problem statement too narrowly or

broadly defined?
Is a solution included in the statement?
Would customers be happy if they knew we

were working on this?
Project objective
What process will the team focus on?
Definition of the improvement, the team

is seeking to accomplish
Typically starts with a verb (reduce, eliminate,

control, increase)
Tends to start broadly eventually should

include measurable target and completion date
Must not assign blame, presume cause,

or prescribe solution!
Drivers of project selection
Bigger Ys
Voice of Voice of Voice of

The employee the customer the shareholder
Key output metrics that are

aligned with the strategic
Business Big Ys goals/objectives of the business.
big Ys provide a direct measure
Of business performance
Process Ys
Y
Y
Key output metrics that
Y summarise process performance
Y
Project Y
Key project metric defined
X1 X2 X3 From the customer perspective
Any parameters that influence the Y
Strong linkage between projects and big Ys is important
Prioritization of Six Sigma projects
Financials help prioritise projects

Focus and motivate teams to deliver results
Incremental revenue
Volume driven metrics
Increased capacity
Improved product quality/service
Improved commercial processes
Price driven metrics
Decreased cost
Reduced rework
Increased labor efficiency
Reduced operating expenses (fixed and variable costs)
Reduced plant and equipment depreciation or lease expense
Projects can focus on hard gains or soft gains
Gather VOC
Translate to needs
Identify customer Gather verbatim VOC
statement and develop
segments that need to and determine service
a CTQ - project Y metric
be targeted quality issue
output characteristic
List your customers Review existing VOC data
Define customer segments Decide on what to collect
Narrow the list of customers Use appropriate tools to gather VOC

Surveys
Interviews
Be a customer
Focus group
Customer observation
Listening posts
Competitive comparison
Collect data
Customers requirements determines quantifiable process metrics CTQ
Gather VOC
Translate to needs
statement and develop
a CTQ - project Y metric
Organise all customer data

Translate VOC to specific needs
Define CTQs for needs
Prioritise CTQs
Contain problem if necessary
Affinity diagram
Example: credit card
Flexible product Easy process Availability Personal interface Advice/consulting
Low interest rate Easy application Will come to my facility Knowledgeable reps Knows about my
finances
Available outside
Variable terms Easy access to capital Professional
normal business hours Knows about my
business
All charges clearly Quick decision Available when I need Friendly
stated to talk Makes finance
Can apply over phone Make me feel suggestions
Pay back when I want Responsive to my calls comfortable
Know status of loan Cares about my
No prepayment Talk to one person Patient during process business
during application
penalties/ charges
Know status of loan Has access to experts
Pre-approved credit
(post-approval)
Provides answers to
Preference if bank questions
customer
Calls if problems arise
Organise VOC into broad categories
Translating VOC into CTQs
VOC C T Qs
Translate to needs
statement and develop a
CTQ - project Y metric
Customers requirements determines quantifiable process metrics CTQ
Example: Translating VOC to CTQs
You take too much time in getting back to me!
Verbatim These forms are too cumbersome!
Quick response
Specific
User friendly forms
needs
Process turn around time

not more than 10 minutes.
CTQs
Form < 2 pages and < 10
Validate CTQ minutes to complete
with customer
What gets measured gets managed help ensure measurable CTQS
Identify Must bes affecting CTQs
Shareholders and
customers
Business process
Compliance
effectiveness
Project
Employees
CTQ Cost and competitors
Controllership
Integrity of
and Business
Communications
Strategy
Internal
upstream/downstream
Customers
Elements of a project charter
What is and what is not

Business big Ys included? What are the
boundaries? In scope/
out scope?
Process Ys

is a description of what
is wrong and where?
(quantify - %/$$$)
Does project Y What is the improvement Key milestones/

link to business Ys? team seeking to achieve? timelines/detailed plan
Business Problem/ Resources/

Goal Project Milestone/
case/ opportunity team members
statement scope project plan
Benefits statement Roles
Start with a verb (e.g., reduce, eliminate, control, increase) Who are the key resources ?
Focus of project (cycle time, accuracy, etc.) What will be the roles of BBs/
Target (by 50 per cent, by 75 per cent) GBs/Sponsor/MBBs
Deadline
Project scope
What process will the team focus on?
What are the boundaries of the process we are to improve?
Start point? Stop point?
What resources are available to the team?
What (if anything) is out of bounds for the team?
What (if any) constraints must the team work under?
What is the time commitment expected of team members?
What will happen to our regular jobs while we are doing the project?
Sample project charter
Project Name Improving Accuracy of Payments Processing

Process name Accounts Payables Process for Malaysia
Sub Process Name Black Belt HT Project Number
Sponsor HK
Business Case Problem/Opportunity Statement Goal Statement
The Malaysian team is presently handling the The data for the month of October 2002 shows To reduce the number of errors to less than 10 errors (both first pass and second
trade creditor payments for Bank of that 65 errors which were corrected during pass) per month by end of 31st December 2002
Malaysia.Average lines processed being in the processing and there were seven errors
range of 15,000 to 16,000 per month. identified by the Customers which led to
Many a time, there are few errors which if passed Customer Complaints during the month.
on to the customers which may have a financial
impact thus incurring a monetary loss and high
Customer dissatisfaction. Such errors also have
an impact on the TAT as it results in rework.
Project Scope Includes Project Excludes Project Milestones
Includes vendor payments, staff claims. Project Excludes Fixed Assets batch run, Daily Start Date: 28-Oct-02 End Date: 31-Dec-02
Batch run and Account reconciliations. Target Date Actual Date TG Review Date
Define 01-Nov-02 01-Nov-02 01-Nov-03
Measure 16-Nov-02 29-Nov-02 29-Nov-03
Analyze 23-Nov-02 29-Nov-02 29-Nov-03
Improve 30-Nov-02 31-Jan-03 31-Jan-03
Control 07-Dec-02 28-Feb-03 26-Mar-03
Project CTQ Details Project Comments
Process CTQs Unit USL Target
Accuracy # 10/month 5/month
Project Charter Sign Off ( With date)
Current Target Sponsor
sigma 5.04 5.29 GB/BB
BB/QL
Project Translation Plans Project Benefits Estimate
Possible to roll out the model to other AP shops in BOM
Sample project charter
Roles and responsibilities

Name Approver Resource Member Interested party Time commitment
Hk X 2 hours a month
VIV X 2 hours a month
Ramanan X 2 hours a month
Venkata X 4 hours a week
Balaji X 4 hours a week
Hema X 4 hours a week
MY CFD X 1 hour a month
Estimated benefits (Enter details for columns whichever are applicable)

Hard gains Unit Amount Assumptions Soft gains Unit Assumptions
End customer satisfaction
Sigma increase
Employee satisfaction
Shareholder satisfaction
CTQ: Accuracy
Prioritising CTQs Kano model
Satisfaction
Delighters +
One-dimensional
Innovation
Competitive priority
Free upgrades
Individual movies and games Seat comfort
Special staff attention/services Quality of refreshments
Computer plug-ins (power Friendliness of staff
sources) Baggage speed On-time
arrival
Dysfunctional Functional
Must be
Critical priority
Safe arrival Accurate

booking Baggage arrives
with passenger 99 per cent
system uptime
Dissatisfaction
Kano model helps to prioritise our efforts towards satisfying customers
Prioritising CTQs Kano model
Kano model/theory:
The Kano theory helps prioritise teams improvement efforts after needs and CTQs have been established.
The team should refrain from translating CTQs to the Kano model but rather have customer VOC verify
where the need/CTQ should feature using the model
For some customer needs, customer satisfaction is proportional to the extent to which the product or
service is fully functional
The horizontal axis indicates how fully functional a product/service is; and the vertical axis indicates
customer satisfaction
It is to be expected over a period of product life cycle that (the product) could shift from being a delighter to
a one dimensional to a must - be (e.g., invention of TV)
In frame/out frame - Project scoping tool
Draw a large square picture frame on a flip chart (or use tape on a wall) and use this
metaphor to help the team identify what falls inside the picture of their project and what falls
out. This may be in terms of scope, goals, and roles
G.R.P.I
G.R.P.I. checklist - This tool is based on a simple model for team formation. It
challenges the team to consider four critical and interrelated aspects of teamwork:
Goals, roles, processes and interpersonal relationships.
It is invaluable in helping a group become a team.
G.R.P.I Checklist Low High

Goals
How clear and in agreement are we on the mission and goals of our team/projects? 1 2 3 4 5
Roles
How well do we understand, agree on, and fulfill the roles and responsibilities for our
team? 1 2 3 4 5
Processes
To what degree do we understand and agree on the way well approach our project
and our team? (Procedures and approaches for getting our project work done? For 1 2 3 4 5
running our team?)
Interpersonal
Are the relationships on our team working well so far? How is our level of openness, 1 2 3 4 5
trust, and acceptance?
G.R.P.I
Uses: An excellent organising tool for newly-formed teams or for teams that have
been underway for a while, but who have never taken time to look at their teamwork.
Ideally, this tool should be used at one of the first team meetings. It can and should
be updated as the project unfolds.
Steps:
Distribute copies of the check list to all team members prior to a team meeting. Invite team members
to add details/examples on each of the four dimensions of the check list. Ask each team member to
bring his/her completed checklist to the team meeting.
At the team meeting discuss and resolve issues related to the check list.
Share certain aspects with champion/functional leader if appropriate.
Option: When there is considerable disagreement or tension within the team environment, team
members can choose to complete the questionnaire individually and turn it in to a neutral party who
will collate the data and give it back to the team in an aggregate fashion (thus protecting the
anonymity of individual team members).
G.R.P.I
Expanded version of the tool: Useful when a more detailed look at team elements is
required.
0% 25% 50% 100%
Purpose and outcomes

We understand and agree on our project mission and the desired outcome (vision).
Customer and needs
We know who the project stakeholders are, what they require, and why this project is really needed.
G Goals and Deliverables
We have identified specific, measurable and prioritized project goals and deliverables linked to our
business goals.
Project scope defination
We understand/agree on what in/our of our project scope and tasks, The project scope is set.
Roles and responsibilities

We have defined and agreed on our roles, responsibilities, required skills, and resources for our project
R team.
Authority and Autonomy
Our team is clear on the degree of authority/empowerment we have to meet our project mission.
How would you rate the degree to which your team presently has clarity, agreement and
effectiveness on the following GRPI-related elements?
G.R.P.I
0% 25% 50% 100%
Critical success factors

We know and are focussing on the key factors needed to meet the project goals and mission.
Plans and activities
We have an effective game plan to follow that includes the right tasks; clearly defined/ assigned.
P Monitoring and measures
We have an effective monitoring process and specific metrics linked to progress and goals
Schedule/milestones
We have defined our project schedule and know what the key phases and milestones are
Team operating agreement

We have defined shared expectations, agreed and followed guidelines for how our team works
together.
I Interpersonal/team
We have the necessary relationships, trust, openness, participation and behaviors for a healthy and
productive team.
Great project
Be clearly bound with defined goals

If it looks too big, it is
Be aligned with critical business issues and initiatives

It enables full support of business
Be felt by the customer

There should be a significant impact
Work with other projects for combined effect

Global or local beta themes
Show improvement that is locally actionable
Relate to your day job
Project selection
Success factors To be successful

Project scope is manageable Set up project scope charter and have it
reviewed
Project has identifiable defect
Measure where defects occur in the process
Project has identifiable impact
Assess and quantify potential impact up-front
Adequate buy-in from key stakeholders
Perform stakeholder analysis
Common pitfalls Avoiding pitfalls

Resourcing of project is inadequate Identify and get committed resources up-front
Duplicating another project Research database and translate where
possible
Losing project momentum
Set up milestones and communications plan
Picking the easy X, not the critical X
Process definition and elements
A collection of activities that takes one or more inputs and transforms them into
outputs that are of value to the customer
The business process
Inputs Outputs
Supplier(s) Customer(s)
Process mapping and benefits
CTQs CTQs
S I P O C
Suppliers Inputs Process Outputs Customers
Measures Measures
Process map
Process mapping and benefits
Supplier: The provider of inputs to your process
Input: Materials, resources or data required to execute your process
Process: A collection of activities that takes one or more kinds of input and creates output
that is of value to the customer
Output: The products or services that result from the process
Customer: The recipient of the process output may be internal or external
CTQs: Critical to quality characteristics; a specific attribute or quality of the output that is a
key requirement for customer satisfaction
Boundary: The limits of a particular process, that define the start and stop points of the
process
Levels of process mapping
Core process Credit

Messaging Payments Trades Billing
(Level I) Operations
Subprocesses
(Level 2)
Exports Imports
Subprocesses
(Level 3)
Negotiation Payments Collections
Microprocesses
(Level 4 and Below)
Process mapping guidelines
Process STOP
Suppliers Inputs Outputs Customers CTQs
Define business process to be reviewed name it agree on beginning and end of process bound it.
Refer to CTQ work to identify primary outputs, the customers who receive them, and the customers CTQs
Use nouns for outputs (e.g., sales call, proposal, etc.)
Use adjectives for CTQs (.e.g., timely, knowledgeable, accurate)
Identify the process steps using brainstorming and affinity techniques

Write large one step per card Do not try to establish order
All steps should begin with a verb Do not discuss process steps in detail
Use brainstorming and affinity techniques to identify critical inputs which affect the quality of the process
For each critical input, identify the supplier who provides it
Validate to be sure the map represents the situation as it really is today (the as is map) not how you think it is,
or how it should be
Define deliverables
Identify project through business theme and personal issue
Review Six Sigma Quality project tracking database for similar projects
Identify internal/external CTQs
Create high-level process map
Identify potential data sources
Identify team members and business functions required
Identify information technology (IT) requirements
Identify financial impact
Open project in Six Sigma quality project tracking database
Six Sigma
Work out session
Create the
project charter
Measure
1 Select Project Y 3 Variation

Measures Display and describe variation
CTQ Prioritisation Causes of variation
Types of data Run chart
Fishbone diagram Bar chart
Normal curve
2 Develop Data Collection Plan

Establish data collection plan
Define operational definitions
Define sampling procedures
Measurement system analysis
Deliverables: Data collection plan, MSA results, data plots
Select project Y
Example:
Employer
Big Ys of choice
Process CTQs/
VOC CTQs Retention rate
process metrics
Project CTQ/
Attrition %
project Ys
Essential to validate the linkage between project CTQ, process CTQs and big Ys
Select project Y
The foundation of the measure phase as the name suggests lies in the data
collection plan keeping the target of the project, processes and business in
mind
The above steps have an inherent linkage in the sense that it would enable
us to cross check if our project CTQ is aligned to the process output
characteristic
The process output characteristic can than be rolled up into process and
business metric
Cause and effect diagram
High level prompters

Write the possible To help generate
causes here Possible causes
Material Or use 4 Ps
Method
Printer problem Linked deals not getting
Changes made in
Bank Profile with released on time
operational data Machine
Printing not clear wrong Swift IDs
Forced priority of deals
Handwriting
Write the To many deals held
not legible
effect here Full document not Correction of errors with the same person
scanned in previous deal Changes in Bill
delays current deal category
by Spoke
Why do we have
late processing
Lack of typing skill
Awaiting memo replies Creation of
(clarifications) bank ID,
Fear of committing errors
Customer ID
To many amendments Availability of IMEX for
long hours Alternations of errors
Learning curve making in previous steps
Bunching of documents
Institutions not clear
Complicated deals
Lack of training programme Measurement
Absenteeism
Late scanning and receipt for new recruits
Mother nature Man
Cause and effect diagram
How do we carry it out?

Brainstorming without any prior preparation as the methodology
Be sure that everyone in the team agrees on the problem statement
Bring down the problem statement to a level more in detail as compared to the statement in the
project charter
Follow the principle of five Whys?. Keep asking Why till the group arrives at a logical end to the
chain of causes
Include maximum possible information on
What
Where
When and
How much
Minitab Software helps you to generate the template of a fish-bone diagram. You can draw a
blank diagram, or a diagram filled in as much as you like. Although there is no correct way to
construct a fishbone diagram, some types lend themselves well to many different situations.
Statistics > quality tools > cause-and-effect Menu pull-down sequence in minitab
Control impact matrix
When we know the possible root causescan we attack all?
The difficult piece Target it now

Use change management Why wait?
High
strategy Just Do it
Impact
Check the effort

Low
vis a vis the results
Low High
In our control
Understanding measures
Measure: Any element relating to the process under study which is operationally definable
and quantifiable. Measures can be understood better by classifying them in the following
ways:
Classification
of measures
Based on SIPOC Based on focus Based on statistics
Input Efficiency Continuous

Process Effectiveness Discrete
Output
Based on SIPOC
Input Process Output
Garbage in, How good is Accurate?

garbage out my process
Timely?
Productive?
Y = f(X1, X2, X3. Xn)

Output Y is a function of various inputs and process steps
Measures can be classified as input, process or output measures
Based on SIPOC
Where should parameters for measuring be focussed?

Output - because that is what our customers get
Process - because thats the way we perform
Input - because potentially garbage in could be garbage out

Y is the output measure where as X relates to various inputs and process measures
Based on focus
Measures for looking at process performance
Customer focused Process focused
Effectiveness Efficiency
The degree to which customer CTQs are met and The amount of resources allocated in meeting
exceeded and exceeding customer CTQs
Some examples: Some examples:

Percent defective Cost per transaction
Response time Turnaround time
Billing accuracy Time per activity
Amount of rework
Based on statistics
Continuum of data types
Discrete Continuous
Binary Ordered categories Count

Description
Classified into one Rankings or Ratings Counted discretely Measured on a continuous scale
of two categories
Is this group ready to Classification of the group into Number of people Actual distance traveled by
travel 100 km daily to categories based on distance each who have come late today each in this group measured
Example
to reach office travels daily to reach office in kms

Yes or no Categories :
decision of group (0 - 2 kms)
(2- 5 kms)
(5-10 kms)
(10-20 kms)
(20-50 kms)
(50-100 kms)
Exercise Type of data
1. Percent defective parts in hourly production
2. Percent cream content in milk bottles (Comes in four-bottle container sets)
3. Amount time it takes to respond to a request
4. Number of blemishes per square yard of cloth, where pieces of cloth may be of variable size
5. Daily test of water acidity
6. Number of accidents per month
7. Number of defective parts in lots of size 100
8. Length of screws in samples of size ten from production lots
9. Number of employees who had an accident
Based on statistics
Some more examples:

An instrument processed is defective or
non defective
Turn around time for the batch processing

Ratings for a trainer on a point scale (say
5 point)
Points to remember:
It is possible to convert continuous data to
discrete, however visa-versa is not
possible
Continuous data gives more insight on the

process performance than discrete
Control impact matrix
Classify all the causes that the group arrives at in the brainstorming session for the control and impact
matrix
Use your teams process knowledge and business experience to list possible Xs in a control/impact
matrix, then use process data to verify or disprove placement of the Xs
Prioritization steps
Using the control/impact matrix shown above, examine each X in light of two questions:
What is the impact of this X on our process?
Is this X in our teams control or out of our teams control?
With your team, place each X in the appropriate box on the matrix
Use process data to verify or disprove your assertions
The validated matrix is a guide used to addressing the Xs. Begin with the high impact/in our control
category
Out of our control Xs may require special solutions and CAP (change accelerating process) tools for
successful sustainable solutions
Must be for measures
Following criteria should be kept in mind while choosing measures

Choose the output measure from a customers view (Outside-in)
The cost benefit ratio for the data collection should be justifiable
The measure should be relevant to the process
A clear operational definition of the measure has been agreed upon by all
stakeholders
The measure and subsequent data collection should enable analysis, evaluations
and actions
The measure should truly be a representative of the deepest understanding of the

process
Include efficiency and effective measures for process excellence
Data collection plan
Why What How Help ensure

Collect
collect to to consistency
data
data? collect ? collect? and stability
The purpose of Identify Formulate data Develop Pilot collection

the data measures collection plan measurement and validation
collection Define Sampling
system plan
exercise operational strategy analysis Train data
definitions Pilot data
Test and collectors
What data to collection plan validate Monitor and
be collected improvise
Word of caution: Ineffective data leads to ineffective conclusions
Data collection plan
Data collection occurs multiple times throughout DMAIC. The data collection plan
described here can be used as the guide for data collection. This help us ensure that
we collect useful, accurate data that is needed to answer our process questions
It is important to be clear about the data collection goals to ensure the right data is
collected. If your data is in the wrong form or format, you may not be able to use it in
your analysis
Operational definition is a helps to guide thinking on what properties will be measured

and how they will be measured. There is no single right way to write an operational
definition. There is only what people agree to for a specific purpose. The critical factor
is that any two people using the operational definition will be measuring the same
thing in the same manner.
Template - Data collection plan
A format of an excel spread sheet that can be used for data collection plans for our projects.
The sample data collection plan above is for the project CTQ, in this example, number of
rejections.
However one should remember that based on C-E diagram and the SIPOC all those Xs
which the team feels to have a influence over the Y should also be included in the data
collection plan.
Example of a data collection plan
Sampling
What is sampling all about?

Sampling is a process of collecting a
portion or a sub-set of the total data
available. This total data available or
could be available is often referred to
as population. The sample so drawn
up from the population should help us
to draw conclusions about the
population.
Some points to consider while
collecting data
What amount of time is needed?
How much cost is involved?
Is it really possible?
Six Sigma
Work out session
Complete till fish

bone and data
collection in the
project
Sampling
The Six Sigma team would always face a question How much data do we need to have a
valid sample? Though an important part of data collection is to obtain a sample of
reasonable size, it is one of many questions to be addressed during the planning and
development of a data collection strategy. Sample size is just one aspect of a valid data
collection activity
The validity of the data is impacted by many things: For example, operational definitions,
data collection procedures and recording
In process improvement, there are a number of questions to keep in mind relative to

sampling:
Is the data representative of the situation or is bias possible?
Why am I sampling? To improve or control a process or to describe some characteristic of

a population?
What are the key considerations for either a process or population situation?
What is the approach to sampling (e.g., random, systematic, etc.) and approximately how
many to sample?
Sampling
When to sample?
Collecting all the data is impractical
High cost implications due to population
study
Time availability
Data collection can be a destructive
process (crash testing of cars)
When measuring a high-volume process
Some points to consider while

collecting data
The subset of data collected may not be
truly representative of the population thus
leading to an ineffective conclusion (every
unit is unique: e.g. structured deals or
auctioning events)
Types of sampling
Types of sampling
Random/probability Non random/judgmental
All items in the population have an equal chance of The groups knowledge and opinions are used to
getting selected identify items from the population
Some examples: Some examples:

Cycle tyres being produced in the Every third tyre used with an aircraft is cut
assembly line have a random check on the open and checked for quality
daily production Sampling for deducing the error rates
10 per cent quality check on daily during high volumes/near cut off times
processed transactions
Approaches for sampling
What do you want to studythe process or the output?
Process data Population data
Process approach Population approach
Assess the stability of the population over time Make probability statements about the
Are the shifts, trends, or cycles occurring? population from the sample
Do I take a special or common cause variation I have 95 per cent confidence that the mean
approach to process improvement? of the population for turn around time is
between 1.5 and 2.5 seconds
Approaches
for sampling
Process Population
Systematic Rational Random Stratified random

sampling sub-grouping sampling sampling
Measurement of AC room While studying the arrival Survey across our Average cycle time for LC
temperature. Collect one rate of documents as Organisation to know lissuance process of
data point every one hour for dispatched by the customer. What percentage of our different countries. Each
the entire day. The entire day is split up into employees have visited the country is a strata (segment).
quadrants, rational being the intranet in last seven days. Collect random data from
arrival rate of documents is Select employees from each strata
similar within each quadrant Population at random
and different between And collect data.
quadrants
Systematic sampling is typically used in process sampling situations when data is collected real time
during process operation. Unlike population sampling, a frequency for sampling must be selected
Systematic sampling involves taking samples according to some systematic rule e.G., Every fourth
unit, the first five units every hour, etc. One danger of using systematic sampling is that the systematic
rule may match some underlying structure and bias the sample
For example, the manager of a billing center is using systematic sampling to monitor processing
rates. At random times around each hour five consecutive bills are selected and the processing time
measured
Like random samples, stratified random samples are used in population sampling situations, when
reviewing historical or batch data
Stratified random sampling is used when the population has different groups (strata) and we need to
help ensure that those groups are fairly represented in the sample. In stratified random sampling,
independent samples are drawn from each group. The size of each sample is proportional to the
relative size of the group
Rational subgrouping
The process
12noon to 12.20pm 12.45pm to 1pm 1.20pm to 1.45pm Sample
Subgroup of
samples
What does it mean

Sample at point A in the process every tenth hour to discover the patterns in operation - hunch plays a
role - data drives decision
Points to remember
Monitor process frequently enough to catch it in various phases of operation
Several small subgroups to be measured at different points in time
Higher frequency of measurements for an unstable and unpredictable process
The frequency can be lowered in case of a stable process
Processes working on lower turn around time need a higher frequency and vise versa
Rational subgrouping
Rational subgrouping is the process of putting measurements into meaningful groups to better
understand the important sources of variation
Rational sub grouping is typically used in process sampling situations when data is collected
real time during process operations. It involves grouping measurements produced under similar
conditions, sometimes called short-term variation. This type of grouping assists in understanding
the sources of variation between subgroups, sometimes called long-term variation
Guidelines for using rational sub grouping

Form subgroups with items produced under similar conditions
To help ensure items in a subgroup were produced under similar conditions, select items
produced close together in time
Minimise the chance of special causes in variation in the subgroup, and maximise the chance
for special causes between subgroups
Sub grouping over time is the most common approach; sub grouping can be done by other
suspected sources of variation (e.g., Location, customer, supplier, etc.)
Sampling bias
Sampling bias
Opinion on the abolition of a student union is being considered in an

universitythe target audience are students a large number of those
involved in some political activity
Deduction: 93 per cent of the respondents were against the move.
Bias occurs when systematic differences are introduced into the sample as a
result of the selection process
Not representative of the population
May lead to incorrect conclusions about the population
Determining the Sample Size
Three metrics that determine the sample size

Level of confidence (ZC):
The team needs to be sure of the adequate representation of the population with the
sample chosen
The term used for the same is level of confidence which increases with an increase in
the sample size
Precision ()
How accurate is the result as a deduction from the samplewhat is the level of
accuracy needed in my samplewhat kind of process are we dealing with
Precision improves as sample size increases
Standard deviation of the population (s)
How much variation is in the total data population?
As standard deviation increases, a larger sample size is needed to obtain reliable
results
Sample size is not dependent on the population size
Sample size for continuous data
Zc
Is defined as the Z value at c level of confidence
For example a 95 per cent level of confidence is taken for which Z value is 1.96
2
The sample size (n) can then be determined as n= (ZC) (s)
Hence at 95 per cent level of confidence n= 1.96 (s)

The measured
value can lie
between these
What do we infer?? limits
Target value
The Six Sigma team can thus infer that the mean for the population lies within m with 95 per
cent confidence - For service industry purposes we will use 95 per cent confidence Interval
Sample size for discrete data
p
Is the estimate of the proportion defective for the population
The maximum sample size is obtained at p = 0.5 2
The sample size (n) can then be determined as n = (ZC) P(1-p)

2
Hence at 95 per cent level of confidence n = 1.96 (s) p(1-p)
The measured
value can lie
between these
What do we infer?? limits
Proportion defective - Proportion defective Proportion defective +
The six sigma team can thus infer that the population proportion defective lies between p
with 95 per cent confidence
Measurement System Analysis (MSA)
Total variance
Apparent process measurement
variation = variation + variation
Double challenge:
Help reduce variation in both processes!
Terms of MSA
Measures the differences between observed average

Accuracy measurement against a standard
Measures variation when one Operator repeatedly takes

Repeatability the measurements of the same unit with the same
measuring equipment
Measures variation when various Operators measure the

Reproducibility same unit with the same measuring equipment
Examples of ANOVA
Four different machines are used to produce milk An agricultural scientist uses fertilizers supplied by
pouches of 1000ml dz h by city dairy. Before these three different manufactures to study the yields. The
pouches are dispatched for local distribution, the yields (mt per acre per year) from different plots of
quality assurance manager selects four samples of 100 similar characteristics are as follows. Test whether
pouches from each of the machines and determines the yields differ significantly when fertilizers from
the no. of pouches that does not meet the different manufactures are applied
specifications under the weights and measures act.
The results are tabulated as follows:
Machine Fertilizer
Observation I II III
A B C D
1 55 73 70
7 6 8 10 2 75 87 72
3 73 84 75
6 8 9 11
4 77 57 80
9 10 11 12 5 78 65 83
6 85 60
5 4 6 7
7 92
Example of ANOVA
Example of ANOVA
Example of ANOVA
Example of ANOVA
Example of ANOVA
Analyzing gage R&R results

R&R per cent of Tolerance
R&R less than 10 per cent - Measurement System acceptable
R&R 10 per cent to 30 per cent - may be acceptable make decision based on classification of
characteristic, application, customer input, etc.
R&R over 30 per cent - not acceptable. Find problem, re-visit the fishbone diagram, remove root
causes. Is there a better gage on the market, is it worth the additional cost?
Per cent contribution (or gage R&R standard deviation): GR&R variance should be small
compared to part-to-part variance
Number of distinct categories

< 2 - no value for process control, parts all look the same
= 2 - can see two groupshigh/low, good/bad
= 3 - can see three groupshigh/mid/low
4 or more acceptable measurement system (higher is better)
Effective Resolution 50 per cent, or more, of Xbar chart outside control limitsimplies part
variation exceeds measurement system variation
Example Attribute agreement analysis
Within appraiser assessment agreement graph

Shows you the consistency of each operator's answers. For each appraiser, the graph consists
of the following:
Blue circle, which provides the actual percent matched
Red line, which provides a 95 per cent confidence interval for percent matched
Blue cross and blue X, which provide the lower and upper limits for the 95 per cent confidence
interval, respectively.
Appraiser versus standard graph

If you have a known standard for each part, then the percent matched between appraiser and
standard is plotted.
The appraiser versus standard assessment agreement graph shows you the correctness of
each operator's answers. For each appraiser, the graph consists of the following:
Blue circle, which provides the actual percent matched
Red line, which provides a 95 per cent confidence interval for percent matched
Blue cross and blue X, which provide the lower and upper limits for the 95 per cent confidence
interval, respectively
Kappa
If kappa = 1, then there is perfect agreement. If kappa = 0, then agreement is the same as would be
expected by chance. The higher the value of kappa, the stronger the agreement between rating and
standard. Negative values occur when agreement is weaker than expected by chance, but this rarely
happens. Depending on the application, kappa less than 0.7 indicates the measurement system needs
improvement. Kappa values above 0.9 are considered excellent.
Kendall's
Use the p-values to choose between two opposing hypotheses, based on your sample data:
H0: There is no association among multiple ratings made by an appraiser
H1:The ratings are associated with one another
The p-value provides the likelihood of obtaining your sample, with its particular Kendall's coefficient of
concordance, if the null hypothesis (H0) is true. If the p-value is less than or equal to a predetermined
level of significance (a-level), then you reject the null hypothesis and claim support for the alternative
hypothesis.
Alternate hypothesis is good here as you are trying to judge if the match is due to chance or significant
match
Choosing between kappa statistics or Kendall's coefficients

When your classifications are nominal (true/false, good/bad, crispy/crunchy/soggy), use
kappa statistics.
When your classifications are ordinal (ratings made on a scale), in addition to kappa
statistics, use Kendall's coefficient of concordance.
When your classifications are ordinal and you have a known standard for each trial, in
addition to kappa statistics, use Kendall's correlation coefficient.
Kappa statistics represent absolute agreement among ratings. Kappa statistics treat all
misclassifications equally.
Kendall's coefficients measure the associations among ratings. Kendall's coefficients do

not treat all misclassifications equally.
The consequences of misclassifying a perfect (rating = 5) object as bad (rating = 1) are
more serious than misclassifying it as very good (rating = 4).
Six Sigma
Work out session
Minitab session on
measurement
system analysis
GO HEADER & FOOTER TO EDIT THISInternational'),

TEXT 5/19/2015 108
5/19/2015 108108
2015 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ('KPMG a Swiss
Tools displaying data variation
For a period of time Over a period of time

PERCENTAGE
I and MR Chart for C1

Discrete data
8%
12%
INPUT ERROR
Pie chart 30 UCL=30.00
Indiv idual Value

OMISSION
20
PROCEDURE
18% 62% Mean=15
OTHERS
10
0 LCL=3.68E-04
Subgroup 0 10 20 30
20
UCL=18.43
Mov ing Range

10
R=5.640
0 LCL=0
Bar chart
Histogram
Continuous data
Frequency
Measurement
Run chart
I and MR Chart for C1
Measurement Time
30 UCL=30.00
Individual Value
20
x
Mean=15
10
Frequency diagram
0 LCL=3.68E-04
Subgroup 0 10 20 30
20
UCL=18.43
Moving Range
10
Box plot
R=5.640
0 LCL=0
Characteristics of data
Characteristics of data
Central tendency Dispersion (Variation)
Mean Standard Deviation (SD)

Median Range
Mode Span
Quartile values Stability factor
A set of data points can be compared and interpreted based on their

central tendency and variation.
Central tendency
Consider the time taken for people to withdraw cash (including queue time)
from two different ATM counters. Which counter is better !!
Counter 1 Counter 2
10 10 Median is not affected by Mean
the presence of extreme values
12 12 The arithmetic average
13 13 Can get skewed with extreme
9 9 observations
8 8 The deviations are measure as
7 7 distance from the mean
8 8
10 100
14 14 x
Mean 10.11 20.11
Median (the middle
Median 10 10
data point)
The positioning of the data set
Mode helps determine median
Mode is the data point which occurs Takes into account all values
the most often but does not get skewed
Mode is extensively used in the case
of discrete data which are ordered
categories
Dispersion
How much does each point in

s the data set differ from the
Standard deviation (s) mean
(When central tendency is mean) The aggregate score can help
determine variation of the
process
Range is the difference

Range (R) between the highest and the
(When central tendency is mean) lowest value of a set of data
points
The range of the data helps

Span determine the span
(When central tendency is median) Extreme 5 five per cent
observations on either side
can be discounted
Normal curve
A normal curve originates from a histogram. A histogram is a frequency distribution chart showing
the number of times a given value of the parameter we are trying to measuring occurs.
Histogram of Processing Cycle Time, with Normal Curve
Normal curve generated

By the minitab software
For curve-fitting 20
Histogram showing the

number of times 55
Frequency
has occurred in the data

10
45 50 55 Menu pull-down
Processing Cycle Time sequence
in minitab
Stat > basic statistics > display descriptive statistics > graphs
Minitab software can be used to display a histogram, a histogram with a normal curve and other
graphical summary to be learnt later.
Normal curve
34.13% 34.13%
2.14% 13.60% 2.14%

13.60%
0.13% 0.13%
-3s -2s -1s 0 +1s +2s +3s

68.26%
Percentage of data
95.46% getting covered under the curve
99.73%
Properties of a normal curve:

The curve never touches the X axis, asymptotic
Mean, median and mode coincide
Curve can be divided in half with equal pieces falling either side of the most frequently occurring value
The peak of the curve represents the center of the process
The area under the curve represents virtually 100 per cent of the product the process is capable of producing
Normal plot
The minitab output of normality plot for a data set

Normal Probability Plot
.999
.99
Percentage of data
.95
getting covered under
the curve
Probability
.80
.50
.20
.05 P-value
.01 determines
.001 the normality
of the data
24.8 25.8 26.8 27.8 28.8 29.8 30.8 31.8 32.8 33.8
C1
Average: 29.9371 Anderson-Darling Normality Test
StDev: 1.72224 A-Squared: 0.366
N: 90 P-Value: 0.427 Menu pull-down
sequence in minitab
Stat > basic statistics >normality test
Generates a normal probability plot and performs a hypothesis test to examine whether or not the
observations follow a normal distribution.
Normal probability plot
Straight line Exponential curve

Roughly normal distribution Exponential distribution
Normal Probability Plot 20

Normal probability plot for an
for a Normal Distribution
7 exponential distribution
6
Frequency
5
10
4
Percent
3
2
1
0 0
12 13 14 15 16 17 18 0 10 20 30 40 50 60 70 80 90
Bimodal curve S curve

Bimodal distribution Long tailed distribution
Normal probability plot For

Normal probability plot long-tailed distribution
for a bimodal distribution 6 99
6
99
95
5 5
95 Frequency 90
90
Frequency
80
Percent
4 4
Percent
80 70
70 60
60 50
3 50
3 40
40 30
30
20
2 20
2 10
10
5
5
1
1
1 1
0
7 9 11 13 15 17 19 21 23 0 10 20 30 0 7 9 11 13 15 17 19 21 23 0 10 20 30
Types of Distribution
The shape of the distribution depicted by the data can be studied with the
help of a histogram or more precisely with normal probability plot
Roughly normal distribution Exponential distribution

20
7
6
Frequency
5
Frequency
4 10
3
2
1
0
0
12 13 14 15 16 17 18 19 0 10 20 30 40 50 60 70 80 90
Bimodal distribution
6
5
4
Frequency
3
2
1
0
7 9 11 13 15 17 19 21 23
Quartile value
Quartile values (Q1, Q3)
Q1 Q3
Of great use when the data is highly skewed

Aims at dividing the data set in four quartiles and measuring the range in each
subsequently
Each quartile contains 25 percentile of the data
Stability factor
Skewed or stable ops distributions:

The stability factor (SF) is the ratio of the first quartile and third quartile values. The
formula for stability factor is:
SF = Q1/Q3
The stability factor is interpreted such that the closer SF is to 1, the less variation
there is in the process. The further SF is from 1, the more variation there exists in the
process
Q1 Q3
Q1 Q3
Q1 More Q1 Less
Q3 <1 Variation Q3 1 Variation
0 More variation Less variation 1
Box plot
*
* Outlier
*
Highest Value
Each segment Third quartile (75 per cent) value

represents 25 per
Median
cent of the data
points First quartile (25 per cent) value
Lowest value
Box plot is another tool to visually display process dispersion
Box plot
Box plots are graphical summaries of the patterns of variation in sets of data
The horizontal lines at the top and bottom of the plot represent the highest and lowest
values. The horizontal line in the middle of the solid box represents the median, and the
solid box represents the middle 50 per cent of the data, with 25 per cent of the data on
the top side of the box and 25 per cent of the data on the bottom side of the box
Points noted with an asterisk(*) represent extreme values or outliers
Descriptive statistics
Descriptive Statistics
Variable: Processing Cycle
Time
Anderson-Darling Normality T est
A-Squared: 0.836
P-Value: 0.030
Mean 50.4118
StDev 2.2972
Variance 5.27718
Skewness 0.424275
Kurtosis 0.339406
45 47 49 51 53 55 57 N 100
Minimum 44.7533
1st Quartile 48.9910
Median 50.0208
3rd Quartile 51.8229
95% Confidence Interval for Mu Maximum 56.5353
95% Confidence Interval for Mu
49.9560 50.8676
49.8 50.3 50.8 95% Confidence Interval for Sigma
2.0170 2.6686
95% Confidence Interval for Median
95% Confidence Interval for Median
49.6825 50.5014
Descriptive statistics can be run on minitab. The result will be shown as above. One would be able to get
information on normality of the data, visual display of data (normal curve), box plot, outliers, mean,
median, standard deviation, quartile values.
Stat > sasic statistics > display descriptive statistics
Run chart
Median
Time
A tool used to depict the behaviour of the process under investigation over a period of time
A run is defined as a single point or a series of sequential points where no point is on the
other side of the median.
Patterns observed in run charts
Shift/mixtures Same value/clusters
Trend Cycle/oscillation
Run chart
In Minitab:
Choose data
Choose menu Choose quality Choose run are arranged
option stat tools chart as single
column
Enter column that time series

Enter one data is in (data must be stacked
Hit ok in single column to use this
subgroup size
function with subgrouped data)
Run chart
Output
Run Chart for man-hours
Horizontal line
indicates the media of
the sample data plotted
Number of runs about median: 10.0000 Number of runs about median: 18.0000
Expected number of runs: 16.0000 Expected number of runs: 19.6667
P-Value are here Longest run about media:
Approx P-Value for Clustering:
10.0000
0.0129
Longest run up or down:
Approx P-Value for Trends:
6.0000
0.2283
P-Value are here
Approx P-Value for Mixtures: 0.9871 Approx P-Value for Oscillation: 0.7717
Six Sigma
Work out session
Minitab exercises
on graphical
analysis

TEXT 5/19/2015 127
5/19/2015 127127
Causes of variation
Type of variation Characteristics

Inherent to the process
Expected
Common cause Predictable
Normal
Random
Not always present

Unexpected
Unpredictable
Special cause Not normal
Not random
To distinguish between common and special causes variation, use display

tools that study variation over time such as run charts and control charts
Analyse
1 Process capability 3 Narrow to root causes

Base lining Hypothesis testing
DPMO/DPU ANOVA
Cp/cpk t -tests
Calculate sigma Chi-square test
Regression analysis
2 Identify possible causes 4 Quantify the opportunity

Segmentation and stratification Determine the quantum of
Sub-process mapping Benefits from root causes
Process map analysis
Graphical analysis tools
Work value analysis
MUDA/MURI
Deliverables: Process sigma verified root causes estimate of benefit
Rolled throughput Yield
Final Yield (FY) Yield at the end of the process excluding scrap
100 units Step 1 Step 2 Step 3 70 units
Scrap 10 units 10 units 10 units
Final Yield, FY = U/S = Units Passed/Units Submitted

FY = (100-30)/100 = .70 or 70 per cent
Rolled throughput yield
Final yield ignores the hidden factory

Hidden factory
Rework 10 units 10 units 10 units
100 units Step 1 Step 2 Step 3 70 units
Scrap 10 units 10 units 10 units
Classical yield ignores the role of hidden factory
Scrap
Rework Hidden factory
Operation Verify Product
Product of throughput yields

Rolled throughput yield (RTY) across the entire process
Hidden factory
Rework 10 Units 10 Units 10 Units = 30 units
9 0 units 80 units
100 units Step 1 Step 2 Step 3 = 100 units
Scrap 10 units 10 units 10 units = 30 units
FTY 90 per cent FTY 88.9 per cent FTY 87.5 per cent FTY 70 per cent
TPY 80 per cent TPY 77.8 per cent TPY 75.0 per cent
X X = 46.7 per cent
RTY .80 RTY .778 RTY .75
Probability of zero defects
Sigma calculation
Process sigma (Z ST) Percentage Defects per million opportunities (DPMO)
6 99.99966% 3.4
4 99.9770% 230
3 99.3790% 6,210
3 93.320% 66,800
2 69.20% 308,000
Defects in the process defects

w.r.t performance standards
Common terms
Concept Definition
Critical-to-quality Customer performance requirements of a product

characteristics (CTQ)
Defect Any event that does not meet the specifications

of a CTQ
Any event which can be measured that provides

Defect opportunity
a chance of not meeting a customer requirement
Defective A unit with one or more defects
Dashboard Graphical representation of process measures

providing a snapshot of process health
Sigma calculation
Calculating process sigma:

No. of units processed/sample size observed (N)
No. of defects observed (D)
No. of opportunities of defect per unit (O)
D
Defects per opportunity =
N*O
D
Defect per million opportunities = x 1,000,000
N*O
Look up for the sigma value in the sigma table

Yield = 1 - percentage defective (The goodness of the process output)
Abridged sigma table
How to improve the process performance
The statistical problem can be deduced from the data by

concentrating our efforts in 2 directions
Are we missing on achieving the target mean??
Or
Is the problem around the variations??
Six sigma challenge. center mean and/or reduce variation
The statistical problem
LSL USL LSL USL
Target Target
Shift the process mean (technology case) Reduce process variation (control case)
The process variation is well under control The process is capable of performing around the
mean target of the process
The problem lies with the centering or the mean
target of the process output However the variation is beyond acceptable limits
Indicates a need for a look at the technology The technology is supportive but the control
being used for the process mechanisms are not very effective
Starting with a DMAICif need be a Look at process improvements

DMADV/DFSS approach can also be taken up
Process capability
What is it and how does it help us?

Process capability is a simple tool which helps us determine if a process, given its natural variation, is capable of meeting
the customer requirements or specifications
Tells us if the process is capable?
Helps to determine if there has been a change in the process and
Also enables the six sigma team to determine the percent of the product/service not meeting the customer requirement
to enable root cause Analysis
A stable process can be represented by a measure of its variation - six standard deviations Comparing six standard
deviations of the process variations to customer specifications derives Process Capability
Cp : Process capability
USL : Upper specification limit
Cp = USL - LSL LSL : Lower specification limit
6s s : Estimated standard deviation
While Cp looks at the spread of variation it does not look at how well the process is centered to the target value
Statistics > quality tools> capability analysis (normal) Menu pull-down

sequence in minitab
Process capability
Lower Upper spec

spec limit limit Process variation exceeds
Cp<1 specification in this case. Process
is producing defects
Process is just about meeting the

Cp=1 specification but centering needs
attention from the six sigma team
Process variation well under

Cp>1 control. Keep a check on the
centering of the process
-3 -2 -1 +1 +2 +3
Other indices
But we can definitely estimate the process capability in terms of centricity
The indices of Cpl and Cpu (for single sided specification limits)
or
and Cpk (for two sided specification limits) measure
- Process variation with respect to specifications
- Location of the process average
Cpl = X LSL Cpu = USL- X

3s 3s
Cpk is considered a measure of process capability and is taken as the smaller of either Cpl or Cpu can
then be estimated
Cpk = min (Cpl , Cpu )
Last but not the least Minitab helps us do all of it
Target a Cp greater than 1 and a Cpk as equal to 1 (both sides equal)
Segmentation and stratification
Segmentation
A process used to divide a large group of data into smaller, logical categories for analysis. Segmentation
is commonly used by us in our day to day business to understand and interpret information
Example: Segmentation of customers based on the cities
Stratification
A process which uses summary metrics (central tendency, dispersion) to make the decision about when
to separate different processes for continued analysis
Unlike segmentation, stratification involves the uses data rather than just information. Values of the
central tendency and dispersion are used to stratify the given data set.
Example : Stratification of the customers based on the business volumes they provide us
Segmentation tools
Pie charts
PERCENTAGE
Can be used to represent the per cent
break up or the absolute numbers
12%
8% INPUT ERROR
OMISSION Use excel to develop the graph
PROCEDURE
18% 62% OTHERS
Further break up of each slice is also
possible
Bar charts
160 Various combinations and patterns of the
140
120
bar chart make it the most widely used
No. of errors
100
80
Errors
commited
tool
60
Not updated
40
20
Can depict process performance in
0 various pockets as against the targets
rks
email
onship
)
)
r
ethnic
dob
hg
de
hp
fax
tel (o
tel (h
page
zip co
add c
Rema
Multiple axes can help depict

relati
Error fields
comparative effects of factors
Pareto chart
April 1 June 30
200 100
Number of units investigated: 8,000
180 *f = frequency
90
Cumulative Summation Line
160 80
f* of D+B+F (Cum Sum line)
140 f* of D+B 70
Cumulative percentage
120
60
Frequency
f* of D
100
50
LEGEND
80
40 A: Typographical errors
B: Incomplete info
60 C: Sign not verified
30
D: Illegible
40 E: Process understanding
20
F: Poor scan quality
20
10
0 D B F A C E Other
Type of defect
Approximately 80 per cent of defects from defects D+B+F.
80 per cent of the effect on Y is caused by 20 per cent of the factors (X).
Pareto chart
A fully documented Pareto chart typically includes the Cumulative Summation

line or Cum Sum line, which depicts the running total of the frequency of each
subsequent bar (stratification level). The right- hand axis on the graph will show
the cumulative percent of defects. By reading the Cum Sum line against the
cumulative percentage, your team can determine which of the stratification
levels comprise 80 per cent of total for the problem, and direct their attention to
those levels
The pareto chart is an important tool to further focus improvement efforts.

However, the top bars on the chart are not root causes and the team may need
to fully investigate each category in order to pinpoint the root cause. Like the
five Whys, the pareto chart can be used in an iterative fashion in order to
cascade deeper into a process
Pareto chart
When to use a Pareto Chart :
Parrot chart can be used in the define phase to narrow-down the scope of the project
and focus on key-factors if historical data available
Pareto chart be used the measure and analyse phase to analysing the data gathered
to identify which are the 20 per cent root-causes which cause 80 per cent of the effect
Pareto chart should not be used in series repeatedly on the same set of causes as this
will reduce the focus area to 80 per cent of 80 per cent of 80 per cent.
Process mapping
Points to Remember:
People who work on the process know it the best. Involve people who know (focus on)
the as Is process
Decide, clarify and agree upon process boundaries
Use group activities like brainstorming
Use verb - noun format (e.g., Prepare contract not contracting)
Do not aim at the person taking care of the activity
Respect the boundaries
Do not start problem solving
Validate and refine before analysing
Process mapping
Earlier in define, you developed a high-level or SIPOC process map. By looking at a process from a
big picture perspective, you evaluated customer needs and supplier inputs, and determined initial
measurement objectives
Now, you will look in more detail at the sub processes defined in the SIPOC map. Sub process
maps provide specifics on the process flow that you can then analyse using several useful
techniques. Choose what to sub process map by determining which of the major steps in the
SIPOC have the biggest impact on the output (Ys). The block (or blocks) selected is the one on
which you create a sub process map using it to understand how and why it impacts the output
If the output is a time measure, which of the blocks consumes the largest portion of total time, or
which one has the most variation or delays?
If the output is a cost measure, which of the blocks adds the most cost?
If the output is a function measure, which block has the most errors or problems?
Like working with a puzzle, you begin to assemble the pieces of an area on which it makes sense to
focus our efforts
Subprocess mapping
Core Process
Business processes
SIPOC S C
Suppliers (ext.) Customers
(int.) Customer
service
department.
Sub process map Tasks Procedures
Subprocess mapping
Here are some guidelines on building a sub process map. These are not absolute but they should
help you avoid some of the pitfalls of process mapping:
Focus on As is To find out why problems are occurring in a process, you need to concentrate
on how its working now
Clarify boundaries If youre working from a well-done high level map, this should be easy. If
not, you will need to clarify start and stop points
Brainstorm Steps It is usually much easier to identify the steps before you try to build the map
Starting each step description with a verb (e.g., collate orders; review credit data) helps you
focus on action in the process
Who does the step is best left in parentheses (or left out) you want to avoid equating a person
with the process step
Examples: Subprocess mapping
Process flowchart Top down flow chart Deployment or cross-functional

map/flowchart
Planning for a party

Dept 1 Dept 2 Dept
1.0 2.0 3.0
Determine Find Invite
party size location guests Creates
List
1.1 2.1 3.1
Is the Yes
Decide on Decide Complete Writes Sends out
budget theme invitations
invitation guest list the invitation
Covered
No
1.2 2.2 3.2
No
Decide on Select Send
Yes guest list location invitations
Completes
list
Invitation task
completed
MUDA
Muda means waste, where waste is any activity that does not add value. Reducing or eliminating
muda is, of course, one of the fundamental objectives of any quality-oriented person.
Defects
Overproduction
Inventories
Unnecessary processing
Unnecessary movement of people
Unnecessary transport of goods
Waiting
Designing goods and services that done meet customers needs
Muda is one of the '3Ms': muda, or waste, mura, meaning irregular, uneven or inconsistent, and
muri, meaning unreasonable or excessive strain.
Type of waste
Type of waste Example

Complexity Unnecessary steps, excessive documentation, too may permission needed
Labor In efficient operations, excess head count
Overproduction Producing more than the customer demands. Producing before the customer
needs it
Space Storage for inventory, parts awaiting disposition, parts awaiting rework and scrap
storage. Excessively wide aisles. Other wasted space
Energy Wasted power or human energy
Defects Repair, rework, repeated service, multiple calls to resolve problems
Materials Scrap, ordering more than is needed
Idle materials Material that just sits, inventory
Time Waste of time
Transportation Movement that adds no value
Safety hazards Unsafe or accident-prone environments
Work value analysis
Value added work

Can be recognized and classified as steps that are:
Essential for the process Data input
Change the form of the input in some way processing
Are done right the first time
The customer is willing to pay for them
Non value added work

Can be recognized and classified as steps that are
Non essential for the process App waiting in the queue
Do not change the form of the input in some way
Are repetitive in nature
Rechecking
The customer is not willing to pay for them
Value enabling work

Can be recognized and classified as steps that are
Essential for the process
Developmental training
Even if the customer is not willing to pay for them
Like trainings for employees
Work value analysis
Value-enabling work is just a different type of non value-added work. While this terminology can be
difficult, it does attest the perspective: If the customer is not willing to pay for it, it must be non
value-added by definition.
Value-enabling may be tasks and steps that are still needed given todays condition. Consider what
it would be like if things were perfect.
Clues to non value-added work symptoms:
To get work done, you need multiple approvals
Your policies address only control issue
Res are things in your process that are done more than one time (REdo, REcall, REissue)
REs usually cause you to loop back to an earlier point in your process
REs consume time, add to the complexity, and use additional resources and costs the
organizations more in terms of $$smoney
Cycle time analysis
Movement of the Output waiting

Processing Movement Processing
goods to be shipped
5 hrs 2 hrs 4 hrs 4 hrs 4 hrs
Experts say that a 66 per cent of the time spent in a process can be targeted for reduction which is
usually
spent in activities like:
Movement
Storage
Waiting time etc
We can by a simple cycle time analysis select and target such potential areas/activities
Cycle Time Constituents
Process time + Delay time = Total cycle time
Process
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Total % Total % Steps
step
Time
1 120 15 120 3 180 7 1 120 5 10 15 90 15 120 2 120 5 8 957 100 %
taken
Where and why What kind of Why should we retain

are we spending activities are these. activities which are NVA and
the highest time?? VA/NVA/VE? contributing to total TAT?
Process flow analysis
Looking at the process togetherwork flow and value analysis
% %
Process Step 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Total
Total Steps
Est. Avg. Time 12 12 18 12 12

(Mins) 1 0 15 0 3 0 7 1 0 5 10 15 90 15 0 2 120 5 8 957 100%
Value-Added 48 5%
Nonvalue-Added
18.80
Internal Failure 180 %
External Failure
Control/
Inspection 8 0.80%
72.10
- Delay 690 %
- Prep/ set-up
- Move 30 3.10%
- Value-Enabling 1 0.10%
Total 957 100%
Process flow analysis
Cycle time
The total time from the point in which a customer requests a good or service until the good or service is
delivered to the customer. Cycle time includes process time and delay time
Process time
The total time that a unit of work is having something done to it other than time due to delays or waiting. It
includes the time taken for value-added steps, internal failure, external failure, control, inspection,
preparation/set-up, and move
Delay time
Total time in which a unit of work is waiting to have something done to it
Linking value analysis with cycle time analysis creates a compelling business case for change
Displaying this information on process maps emphasises focus areas for improvement and begins building
data for quantify the opportunity
Tips/Traps
Do not get stuck on deciding if a step is value-added or nonvalue-added
Allow team to discuss it
Consensus with two thirds majority vote
Push team to make process map a true as is.
The ratio for an average as is map is 20 per cent value-added, 80 per cent nonvalue-added
Hypothesis testing
What is hypothesis testing?

When you suspect some of the Xs to cause differences (variation) on the Y, then that is the hypothesis.
Hypothesis Testing involves statistical validation of the Hypothesis.
Examples: Two of the processors (X) have same efficiency (Y),
There has been no increase in business volumes (Y) this year (X) compared to last
When to test for Hypothesis ?

Increases your confidence that probable Xs are statistically significant
Used when you need to be certain that a statistical difference exists
What kind of differences are we trying to detect with the help of Hypothesis Testing?
Continuous data:
Differences in averages
Differences in variation
Differences in distribution hape of values
Discrete data:
Differences in proportions
Types of hypothesis testing
ANOVA
Chi-Square Test
There are different types of the hypothesis tests. The type of the test depends on statistical
definition (discrete or continuous) of Xs and Y
Each of these have a differential statistical treatment
However the interpretation of results are common.
Hypothesis testing
ANOVA
The simplest type of problem that is studied with the help of the analysis of variance is one in which a single factor
is under consideration and this factor possesses several categories of levels, which could have a possible effect
on a variable of interest. Example, suppose an office manager is interested in knowing which of the four brands of
typewriters has to be purchased for the office. The hypothesis tested is that all brands of the typewriters yield the
same result.
Regression
The regression analysis is basically useful for two primary purposes:
It can be used to predict the value of one variable when the value (s) of other related variable(s) is (are) known;
and
It can be used to examine whether there is a relationship between two or more variables and it can further
describe the strength of that relationship.
Some examples
Dependent variable Dependent variable
Score on recruitment test Performance on job
R & D expenditure Profitability of the firm
Period of experience of the operator Number of defects in a production run
Number of sales representatives Total number of units sold
Expenditure on advertising Total volume of sales
Hypothesis testing
One sample t test

Example: A state agro canning company uses an automatic machine to fill cans to a specified
weight. As the automatic machine has a tendency to drift out of adjustments, the quality
assurance department draws a random sample of 20 cans from each days production and
weighs these cans. The average weight of the sample can is found to be 485 g instead of the
specified weight of 500 g and the sample standard deviation was 16.5 g. Would you specify, on
the basis of the sample information, a readjustment for the automatic machine?
Two sample t test

Test concerned two populations and two samples. Is the average expenditure of the male
customer is equal to the average expenditure of the female customer. Sales of the product before
and after an advertising campaign
Selection criteria
Are
Xs No
discrete? Regression topics
Non parametric Yes
Mann Whitney for 2 sample t test Are c2

Ys No, Y Is discrete
continuous? (Chi square)
Sign test for 1 sample t test
Levene test for variance Yes, Y Is Continuous
Moods Median for ANOVA Comparing No, multiple groups

only 2 ANOVA
groups ?
Yes
Are you
No
comparing to 2 Sample t-test
a standard?
Yes
1 Sample t-test
Minitab directions
Statistics>basic statistics>2 sample t-test

There are two ways to make a two-group comparison, depending on how you have recorded data in
Minitab
If each group is in its own column, select the samples in different columns option
If all the data is in one column and you have factor labels in a second column, select the
samples in one column option
While you can assume that the variation in the two groups is equal, its usually more appropriate to
leave the assume equal variances box unchecked
Statistics>basic statistics > 1-sample t-test
Statistics>ANOVA
In Minitab, there are two ways to compare several groups:
If you have all the response data in one column and the group identity labels in another column,
choose the one-way option
If you have each group in its own column, choose the one-way (unstacked) option
Statistics>tables>chi-square test
T-test: An example
A t-test is used when we wish to compare the average performance of two groups.
A brand bulbs B brand bulbs

The statistical test examines whether the data supports or disputes the
Null hypothesis no difference between the means of the two populations .

m1 = m2
Alternate Hypothesis that the means are not equal or when there is a difference between the two
population means
m1 = m2
When you dont have a clear preference: ess than or greater than
m1 < m2 or m1 > m2
One sample t test
Choose menu Choose

option basic Choose one Under Variables, data (or
statistics Statistics step t Y, or measurement) is in
Click on test Enter target Set

mean (or test) Mean alternative to Click ok
not equal (or
greater than
or less than
Homogeneity of Variance
Output:
Mean can also be

T-test of the mean represented as mu
Test of mu = 12.000 vs mu not = 12.000 Hypothesis test is stated

here
Variable N Mean StDev SE Mean T P

P-value is here
Man hours 30 12.600 5.069 0.926 0.65 0.52
Homogeneity of Variance
Choose menu Choose

Choose Fill in response with
Option homogeneity
ANOVA column that data (or Y or
statistics of variance
measurement) is in (data
must be stacked in a
single column to perform
this test
Fill in factors Set Fill in title

with the confidence (optional) Hit ok
column that level at 95.0
the subgroup (should
labels are in already be
entered)
Homogeneity of variance
Two sample t test
Perform a Choose
homogeneity Choose sample in
of variance test Choose menu basic Choose two
one column
(see option statistics sample t
(data must be
instructions) satistics
stacked)
Under
samples,
choose column
which contains
measurement
data
Set Set Check assume

Under alternative to confidence equal variances if
Subscripts, not equal (or interval to homogeneity of Click ok
choose column greater than 95.0 (should variance test proved
with data labels or less than) already be samples have equal
there) variances
Two sample t test
ANNOVA
Chi square test An example
A process was producing 106 non defectives and 376 defectives per day. After improvement it was
performing at a level of 503 non defectives and 0 defectives. Do the two processes differ significantly?
Defectives
Non defectives 1 C2 C3 TOTAL

503 0 503
310.99 192.01
2 106 376 482
298.01 183.99
Total 609 376 985 Since p value is less than 0.05

we reject null hypothesis.
Chi-Sq =118.547 +192.008 + The processes are significantly
123.712 +200.374 = 634.640 different
DF = 1, P-Value = 0.000
Thus the two processes are proved to be significantly different from each other on performing a Chi
square test on the values for the before and after the change scenarios
Chi square
Tool: Chi square Test
Data Type: Discrete
Purpose: To determine whether or not there is statistically significant difference

between two processes. Most commonly used to evaluate whether or not a change in
the level of defects before and after an improvement has been made is statistically
significant. Performs a hypothesis test, where:
Ho = No difference in the data (p-value > .05)
Ha = Difference exists between data (p-value < .05)
If p-value is less that.05, accept Ha. It indicates that a statistically significant changes
has occurred
Chi square
Chi square
Under columns
containing the data,
Choose menu
Choose Choose Chi enter the columns
option Hit ok
tables square Test which contain the
statistics
defect/non defect
information
Chi square
Types of hypothesis testing
Kruskal-Wallis
Mood's Median Test
When the data is not normal, above mentioned tests will be used.
Hypothesis testing
sample sign test

It is used to test whether the two
different group data has changed by
analysing the sings of the result
Run test
It is used to test the sample for
randomness.
Correlation and regression
To narrow down upon the key

variables (root causes) we next go
on to a topic that
Helps us determine the nature and

strength of a relationship between
two variables
Correlation and regression
A correlation problem arises when the six sigma team discusses whether there is
any relationship between a pair of variables
A scatter diagram is a graphical tool for exploring the relationship between predictor variables (Xs)
and the response variable (Ys) (i.e., causes and the effect). The equation under consideration
stands at Y = f(x)
This technique can be used to

See whether the potential cause variable and the effect variable are related to one another
Range of the predictor variable (Xs)

The range is the difference between the largest and smallest values
The range of the potential cause variable should be wide enough to show possible
relationships with the effect variable
Irregularities in the data pattern

Check whether the data pattern indicates possible problems in the data
Scatter Ddiagram
A scatter diagram is an important graphical tool for exploring the relationship

between predictor variables (Xs) and the response variable (Ys) (i.e., causes and
the effect)
40
Cycle Time (Days) (Y)
35
30
25
20
15
10
5
1K 2K 3K 4K 5K 6K 7K 8K 9K 10K
Amount to be sanctioned (X)
Some scenarios
1 3 5
Strong positive correlation Strong negative correlation No correlation
2 4 6
Positive correlation Negative correlation Other pattern
For all charts: Y = Participant satisfaction (scale: 1 worst to 100 best)

X = Trainer experience (number of hours)
Some scenarios
Interpretation Of Patterns:
Positive relationship: X increases/Y increases
Graphs 1 and 2 as X increases, Y increases
Graph 1 Strong, positive relationship between X and Y. Not much scatter. Points form a line with a positive
slope
Graph 2 Weaker, positive relationship between X and Y. Scatter is wider. Points still form a line with a
positive slope
Negative relationship: X increases/Y decreases

Graphs 2 and 3 as X increases, Y decreases
Graph 3 strong negative relationship between X and Y. Not much scatter. Points form a line with a negative
slope
Graph 4 weaker negative relationship between X and Y. Scatter is wider
As trainer with the effect variable
No relationship: For any value of X, there are many values of Y

Graph 5 there is no relationship between X and Y. No one line best describes the data
Non-linear relationship The relationship between X and Y is complex and cannot be summarised with a
straight line
Graph 6 Inverted U. This is not a linear relationship
Word of caution
Growing population of ants
Growing population of human beings
Lesson learnt : Correlation does not imply causation
Regression
The correlation coefficient r measures

the strength of linear relationships; 1
r 1
When a relationship exists, the variables

are said to be correlated
Perfect negative relationship
r = 1.0
No linear correlation
r=0
Perfect positive relationship
r = +1.0
r2 measures the percent of variation in Y

explained by the linear relationship of X
and Y
Regression
Y = mX + C
Line of best fit
Regression equation: Y = mX + C, where

C= Predicted value of Y when X = 0
X M= Slope of line
Change in Y per unit change in X
Improving the processes can be complex
Six Sigma
Work out session
Complete the
project till
choosing
hypothesis and
Minitab session
TEXT 5/19/2015 191
5/19/2015 191191
Quantify the opportunity
WHAT: Quantifying the opportunity is all about the six sigma team visiting the
benefits to be accrued from the project. The index at this point of time would comprise of
both hard and soft gains (with a $ figure attached to hard gains) however no cost factors
are involved at this time
WHY: To provide the financial rationale of continuing the project, and to gauge the
allowable spending on the specific solution (s) that will be identified in improve. It is a key
milestone to be covered before the analyse tollgate
WHEN: Usually after the verification of the vital few root causes
Quantify the opportunity Cost/benefit analysis
Done in the analyse phase Done in the improve stage
It is not for a specific solution Calculated for a specific solution
Considers only gross numbers Talks about net gains
Covers the entire process as the scope Scope: A portion of the process
Improve
1 Generate/select solutions 3 Test solution

Brainstorming Pilot planning
TRIZ Verification of results
Criteria matrix
NGT
Idea screening tools
2 Refine solution 4 Justify solution

FMEA Cost benefit analysis
Error proofing
Deliverables: Solution design , developed solution tested on a small scale, cost benefit analysis
Improve: Steps
Generate ideas
Creative approach Analytical approach
Brainstorming Data analysis (DOE)

Select best idea
Filter
Refine the Idea
Error proofing/FMEA
Test the
new idea
Pilot
Justify
TRIZ Theory of inventive problem solving
A theory of problem solving based on the recognition of the power of

psychological inertia and the importance of having a process to move problem
solving activities beyond this inertia by identifying contradictions (barriers to an
ideal solution) and providing specific tools and strategies for eliminating them
Genrikh Altshuller (developer of TRIZ) screened thousands of patents looking

for inventive problems and how they were solved. Only 40,000 had inventive
solutions; the rest were straightforward improvements.
Altshuller categorised these patents by identifying the problem-solving process

that had been used repeatedly. He found that the problems had been solved
using one of forty inventive principles.
TRIZ Key concepts
Overcoming psychological inertia

Psychological inertia is the sum total of an individuals personal
bias, previous experience and technological knowledge. When
challenged with a problem, the solution path will be constrained
by the individuals psychological inertia. Psychological inertia
predisposes not only the solution path, but the types of solutions
as well. Psychological inertia defines the boundaries of the
solution space; if the ideal solution for a problem demands out-of-
the-box thinking, psychological inertia confines the thought
process to the conventional box.
TRIZ Key concepts
Inventive principles are rules

for system transformations.
Each principle is intended to Two of the forty principles
eliminate a single contradiction
or several contradictions. Also, are listed in next page with
these principles can be used
simply to stimulate, or initiate, accompanying service
the thought process to create
the ideal solution to a problem.
examples.
They can be used for Apply selected inventive principles to your
inspiration in conceptual contradiction/problem to develop innovative
design, directly utilised in the solutions
case-based design or used in
various forms of analogical
reasoning.
TRIZ Key concepts
Principle 1: Segmentation Principle 22: Blessing in disguise
A) Divide an object into independent parts A) Use harmful factors to achieve a positive effect
Divide an organization into different product centers Recast an attack on you as an attack on a problem
Use a work breakdown structure for a large project Collect information to understand the harm, then
formulate a positive action to remove it
Franchise objects
Making a fuss over customers who have experienced
Strength/weakness/opportunity/threat (SWOT) a problem with your goods or services
analysis
Sectional furniture B) Eliminate the primary harmful action by adding it
to another harmful action to resolve the problem
B) Make an object easy to dissemble Eliminate the fear of change by introducing fear of
Flexible pensions competition
Use of temporary workers on short-term projects Put a problem person on an assignment in another
area where he/she can do well and not be a problem
Modular furniture/offices in the original group
C) Increase the degree of fragmentation
Empowerment segmentation of decision making
Distance learning
Virtual offices/remote working
Brainstorming Techniques
Structured brainstorming
Smooth flow of ideas
Everyone has an opportunity to express
opinions
Efficient process in terms of idea
generation
Less creative in approach
Unstructured brainstorming
Smooth
Random flow of ideas
All opinions may not be captured
Lesser number of ideas generated
Effective process for creative ideas
Brainstorming techniques
Structured brainstorming: This is a process in which the ideas are generated in a

systematic method by moving from one person to another and obtaining an idea. The
person who does not wish to provide an idea, passes. The process is continued until
each participant passes and the facilitator determines no fresh ideas are being
generated. As with all forms of brainstorming, the ideas are then taken up for discussion.
At the end discard any ideas that are similar and debate on each idea to come up with
the finalised list of possible solutions
Unstructured brainstorming: In this form of brainstorming, ideas are generated randomly

and there is no need to pass. The solutions are discussed freely and can be proposed at
any time. This type of brainstorming process is effective when the representation of each
of the diverse groups involved in the discussion is large. However, the facilitator should
be careful that even in this randomized discussion with large representations, ideas may
not be captured completely
Brainstorming principles
Must be for all brainstorming forms
Prevent biases
Allow free flow of ideas
(group/function/subject)
Create heterogeneous
Manage time
groups
Focus on critical Xs
Scribe all details
and CTQs
Avoid large groups (6

Use voting techniques
- 10 optimum)
Channeling/anti solution
Channeling Anti solution
Structured approach to brainstorm on Structured approach to brainstorm on

specific category of solutions the opposite of the objectives of the
available to the team discussion
Analogy/brain writing
Analogy Brain writing
Brainstorm on ideas on related topic Build on ideas written on a sheet of

to unblock the thought process paper randomly distributed amidst
the group
Analogy/brain writing
Channeling: This form of brainstorming entails channeling of thoughts of the participants similar
to the discussion in fishbone diagram. The discussion revolves on specific stream/section of
solution. E.g while discussion on methods to improve the sales of soaps, potential solutions can
be channeled into: Improvements related to the packaging, fragrance, cutting of costs or
distribution system for the product
Antisolution: Here the objective of the team is reversed to exactly the opposite of what is to be
determined. E.g. In an effort to improve the training programme, the team can debate about the
ways in which the training programme can be worsened. The solutions are opposite of what is
determined during the discussion
Analogy: Analogy form of brainstorming encompasses a discussion on a process/product that is

similar to the one which is being improved. E.g. Instead of discussing on what are ways to
improve the productivity of call center associates for an insurance customer service call center,
the team can discuss opinions on productivity of associates in the customer service call center for
automobile leasing. Make associations at the end of the discussion
Brain writing: Written ideas are exchanged in this process. Each person who receives a written
idea tries to expand on it or adds a totally new idea to it. The pieces of paper are rotated and a
collections of ideas or solutions are then debated and prioritised. This is used when the team
members are unknown to each other
Solution selection
Pay off matrix Screening against Must Be
H
Benefits
Compliance, policies and

regulations
Customer CTQs
Business CTQs
L H
Effort
Solutions for further discussions
N/3 voting Criteria based matrix

Combine all similar Assign # of
Generate/update Establish Criteria Wt. Soln. 1 Soln. 2
choices with Votes
list of solutions consensus
Ease of Use
Inter site availability
Rationalize/justify/reject Preparation of Charts
solutions Information Real time
Auto escalation of
unresolved issues
Tally votes Allow members
for each to choose 1/3 of the Filters and regulated
choice list as choices access
Total score:
Solution selection
Pay-off matrix: After the possible solutions are generated, they can be assigned to different
quadrants of the pay off matrix. The ideas which are low on benefits, are rejected. The discussion
is then focussed on the high effort/high benefits and these are rationalised for implementation.
Some of the solutions in this quadrant are so prohibitively expensive that they can be eliminated
without further analysis. Caution needs to be maintained when eliminating potential solutions from
this quadrant
Screening against Must be criteria: Company policies, local laws and social considerations are
extremely important before proceeding further on any solution. Finally, the extent to which the
customer ctqs of the project are satisfied is a key consideration for selection (use kano model to
evaluate expected extent of satisfaction generated)
N/3 voting: The key consideration in this form is that all rejected solutions should be justified
Criteria matrix: - Please refer to the next slide
Criteria based matrix
Where to use CBM

More than a few criteria for solution
selection
Solutions scoring differently under each
criteria
The weight for each criteria differs
How to use CBM

Identify criteria and assign weightage
The team members to give votes to each
idea
The votes are then multiplied with the
weights of the criteria established for
selection
The total scores obtained at the bottom of
the solution are used to select the same
Error proofing
Error free designs or processes
Eliminate the possibility of setting the xs beyond the limits
Warns operators before the xs move to the outside limit so that the preventive
action can be taken
Can also be used in conjunction with the risk management or SPC
The opportunity for error needs to be minimized or eliminated
Get it right during process design!
FMEA
Definition: Failure mode and effects analysis is a tool to identify the relevant
importance of possible failure of the process/solution and establish clear
mitigation strategy associated with the risks
Principle of FMEA
Impact of any failure on a process is not only severity of the failure but also the
frequency of occurrence and the ability of the control mechanism to detect the
failure
A team activity with the subject matter experts!
FMEA
Objective:
Addressing rational concerns that have significant affect on the performance of the
proposed solution
To evolve a consensus on the recommended corrective actions and procedures to follow.
Suggestions for completion of the activity in time:

It would be best to address concerns from a process perspective rather than have a
business contingency plan activity which would affect the entire business (E.g.
earthquake, fires, natural calamities, geo-political exigencies, power back ups etc.).
Each individual SME/functional expert would position the argument. More often than not
the suggestions/action plans would come from him/her or through a judicious discussion
within the group.
The process owner takes the final call on the impact except when issue is related to a
legal or a compliance issue.
FMEA Worksheet
FMEA is carried out on the process/product being introduced or redesigned

Calculate the risk priority number by multiplying the scores associated with severity,
occurrence and detection-revisit frequently to update
FMEA is a live document
Process Potential Potential S O D R

Potential Current
step/part failure failure E C e P
causes controls
number mode effects V C t N
S O D R
Actions Target Actions
Resp. E C E P
recommended date taken
V C T N
Calculating RPN
RPN = Severity x occurrence x detection
Severity scale
Bad
Rating Criteria A failure could:
10 Injure a customer or employee
9 Be illegal
8 Render product or service unfit for use
7 Cause extreme customer dissatisfaction
6 Result in partial malfunction
5 Cause a loss of performance which is likely to result in a complaint
4 Cause minor performance loss
3 Cause a minor nuisance, but be overcome with no performance loss
Good 2 Be unnoticed and have only minor effect on performance
1 Be unnoticed and not affect the performance
More the severity, higher is the rating
Calculating RPN
RPN = severity x occurrence x detection
Occurrence scale
Bad
Rating Time period Probability
10 More than once per day > 30%
9 Once every 3-4 days 30%
8 Once per week 5%
7 Once per month 1%
6 Once every 3 months 0.3%
5 Once every 6 months 1 Per 10,000
4 Once per year 6 Per 10,000
3 Once every 1-3 years 6 Per million
Good 2 Once every 3-6 years 3 Per 10 million
1 Once every 6-100 years 2 Per Billion
More often it occurs, higher is the rating
Calculating RPN
RPN = severity x occurrence x detection
Detection Sscale
Bad
Rating Definition
10 Defect caused by failure is not detectable
9 Occasional units are checked for defect
8 Units are systematically sampled and inspected
7 All units are manually inspected
6 Units are manually inspected with mistake-proofing modifications
5 Process is monitored (SPC) and manually inspected
4 SPC is used with an immediate reaction to out-of-control conditions
3 SPC as above with 100% inspection surrounding out - of-control conditions
Good 2 All units are automatically inspected
1 Defect is obvious and can be kept from affecting the customer
Lower the ability to detect, higher is the rating
Testing for solutions
Why test solutions

Confirm to potential solution
Obtain feedback and buy-in for proposal
Opportunity for refining solution
How to test solutions

Small scale experimentation-piloting
Modeling-physical models
Simulation- computer models
Testing essentials
Create A data collection plan and Monitor Activities For data Consistency and
stability
Verify that the process has improved-process capability, hypothesis testing for
evaluating statistical significance of the old and the improved process
Ensure
Why collect data? What to collect? How to collect? consistency
and stability
Help ensure robust measurement plan for testing the solution
Justify solution
Tangible benefits Intangible benefits
Savings Customer retention

Incremental revenue Improved VOE/VOC/VOS
Interest cost and income Ease of work
Cash flow Better governance
Reduced workforce
Prepare net financial gains and supplement with intangible gains and
obtain business and finance leader approvals before proceeding
CBA
Hard Gains
Cost Heads Vendor In House Training
Trainer Cost 250,000 0 Soft gains
T and L 30,000 0
Q Team Support 4,444 11,111
Facilities 20,000 20,000
Equipment 1,000 1,000
Stationary and Manuals 15,000 10,000 Trainings customised
GB Examination 50,000 2,222 to the need of the
Total Cost 370,444 44,333
employees
Estimated annual cost Calendar and duration

Cost with QAI Cost with Quality Team of the training
Per Training 370,444 44,333 according to
12 Training per year 4,445,333 532,000
organizations need
Cost of creating the training manual
Man Days Spent Average per day cost Total Cost incurred
30 2,222 66,667
Savings per year
Benefits of training
3,846,667 in-house
Vs.
Assumptions
Employing a vendor
1. Hypothetical Costs assumed
2. Recurring cost of upgrading the content is INR66,667
* All Figures in INR
Control
1 Process control plan 3 Close project

Process management chart Documentation
Process documentation Communication of learning
Selection of control charts Project closure
Interpreting control charts
Response plan
2 Implement solution
Stakeholder analysis
Implementation elements
Deliverables: Process control developed Fully implemented solution Communication of project
Why control?
Improvements
Process control
No process control
Time
To hold the gains of the DMAIC project there by help ensuring that the
efforts of the project team are not written off
Why control?
Process control is essential to prevent the

loss of gains over a period of time
Detect the out of control state of

processes and determine the appropriate
actions
Control system incorporates risk

management, SPC, measurement and
audit plans, response plans,
documentation and ownership
What to control?
Input measures Output

(Xs) measures
Process measures
Monitoring
points
At the barest minimum, measure CTQs

Strive to measure the critical Xs to provide chances to make corrections
Install the appropriate data collection plan
Audit appropriately
Early warning system prevent $$ impact (rework reduction)
Process management system
New special cause variations identified
Documentation Deployment flowchart

and What, who, where of the
process Activity details
standardization
Key measures
Monitoring What, who, when, how of Standards

data collection and
Measurement and process
measurements
Response Procedure for adjustment

What, who, when, how of
plan action upon process failure Containment
Procedure for improvement
Ongoing auditing
Process management system
Documentation Monitoring Response plan
The plan for doing the work Checking the work The response to special causes
Key process Procedure for Procedure for

Deployment Details on key Monitoring Method for
and output Containment process process
flowchart tasks standards recording data
measures adjustment improvement
Documentation
Documentation process is an activity that help ensure that the knowledge

gained by the project team is:
Implemented successfully
Retained by the business
Used to standardize the business processes
Future resources can be trained easily
Improvements can be shared and translated across
Institutionalized
D ocum entation Levels

P rocess Flow charts P rocedures C hecklist
M anagem ent
S ystem
Increasing level of detail
C ore P rocess S ub P rocess M icro P rocess
SPC
Control charts
Monitor changes in the Xs and
detect changes that are due to
special causes
Used when the Xs cannot be
mistake proofed or need to be
controlled for inherent variations
Control charts
Com m on
U p p e r C o n tro l L im it
C a u s e /R a n d o m V a ria tio n
Value/Measurement Axis
60 00
3 .0 S L = 5 58 7
50 00
40 00
X= 4 19 8 A v e ra g e
30 00
-3.0 S L= 28 10
20 00 1
S u bg ro up 0 10 20 30 40
W eek 1 0 /2 2 /0 0 1 2 /3 1 /0 0 3 /1 1 /0 1 5 /2 0 /0 1
S p e c ia l C a u s e L o w e r C o n tro l L im it
V a ria tio n T im e /S e q u e n c e A x is
Select process, measures to be charted

Establish data collection and sampling plan
Calculate the statistics
Plot control charts(two charts for continuous data and one for discrete data)
Interpretation of variation
Common causes Special causes
Mistake 1
Focus on systematic
True variation type
Tampering
Common process change
causes (increases variation)
Special
Mistake 2 Investigate special
causes
Under-reacting causes for possible
(missed prevention) quick-fixes
Low High
In Our Control
Selecting control charts
Type of data?
Discrete
Continuous
Type of discrete data?
Classification(defectives) Count (defects)

Rational
subgroups
Individual measurements
Sample size <10 Constant sample size? Constant opportunity
or subgroups?
Yes No No Yes Yes No

Individuals
Individuals and moving X and R X and S

P-chart np chart O-chart U-chart
range chart chart chart
Six Sigma
Work out session
Q and A

TEXT 5/19/2015 230
5/19/2015 230230
Selecting control charts
A team from marketing is tracking response rates (yes, no) on telemarketing calls. Each day they
randomly sample 100 responses from their outgoing calls. The number of positive responses is plotted on
the chart.
The technical support area is monitoring average response time on help requests. Each hour five calls
are sampled.
A team is monitoring the number of applications received each day with incomplete fields. All applications
are being audited. Each day 200-250 applications are received.
A team is monitoring the cycle time for the underwriters loan decisions. The data comes in slowly; that is,
one loan is completed daily.
A team is tracking the number of fields left blank on an application. Each day a sample of 100 applications
is audited.
Another team is doing the same thing as the team in example 5 (counting the number of fields left blank
on an application), only they are looking at all the applications that come in daily. Each day 50-100
applications are turned in.
The team is tracking the number of abandoned calls to a customer call center in a shift. Each shift takes
from 200-400 calls.
Types of control charts
C-Chart
p-Chart
Rejected Items based different Sample sizes Rejected Items based on constant Sample Size
30 1
3.0SL=0.3324
0.3
Proportion Defective
Number Defectives
20 3.0SL=20.90
0.2
P=0.1685
NP=12.00
0.1 10
-3.0SL=0.004728 -3.0SL=3.101
0.0
0
0 10 20 0 10 20
Sample Number Sample Number
Number of Blemishes per unit sq. m of

c-Chart
u-Chart
Defects reported on 100 sq. m of Artificial Leather Artificial Leather
8 0.08
3.0SL=7.677
Number of Defects Reported
3.0SL=0.07520
Number of Defect/sq. m
7 0.07
6 0.06
5 0.05
4 0.04
3 0.03
C=2.725 U=0.02705
2 0.02
1 0.01
0 -3.0SL=0.00E+00 0.00 -3.0SL=0.00E+00
0 10 20 30 40 0 10 20 30 40
Sample Number Sample Number
Types of control charts
I-MR Chart for each bag of raw material.

Individuals Chats for the each bag of raw material 1050 11
Weight of each bag

1
1
3.0SL=1011
1050 1 11
1 950
X=936.9
3.0SL=1011
Weight of Each bag
-3.0SL=862.8
850 1 1
950 Subgroup 0 10 20 30 40 50
X=936.9
1
100
3.0SL=90.96
Moving Range
-3.0SL=862.8 50
850 1 1
R=27.84
0 10 20 30 40 50 0 -3.0SL=0.00E+00
Bags received during the day
Xbar/R Chart for size of steel Xbar/S Chart for size of a steel
rod(requirement 600+/-3mm) Rod(Specification 600+-3mm)
Means of subgroups of
collected samples
1 602 1 1
603 1 3.0SL=601.9
Subgroupl Mean
3.0SL=602.4
602 601
601 X=600.2
600
600 X=600.2
599 599
-3.0SL=598.6
598 -3.0SL=598.1 598
Subgroup 0 10 20 Subgroup 0 10 20
9 3 3.0SL=2.909
Range within individual
subgroups of samples
8 3.0SL=7.866
Subgroup Standard
7
6 2
Deviation
5 S=1.695
4 R=3.720
3 1
2
1 -3.0SL=0.4808
0 -3.0SL=0.00E+00 0
Examples
Ex1: You work at an automobile engine assembly plant. One of the parts, a camshaft, must be 600 mm
+2 mm long to meet engineering specifications. There has been a chronic problem with camshaft length
being out of specification, which causes poor-fitting assemblies, resulting in high scrap and rework rates.
Your supervisor wants to run control chart to monitor this characteristic, so for a month, you collect a total
of 100 observations (20 samples of 5 camshafts each) from all the camshafts used at the plant, and 100
observations from each of your suppliers
Ex2: You are conducting a study on the blood glucose levels of nine patients who are on strict diets and
exercise routines. To monitor the mean and standard deviation of the blood glucose levels of your
patients, create a control chart. You take a blood glucose reading every day for each patient for 20 days
Ex3: As the distribution manager at a limestone quarry, you want to monitor the weight
(in pounds) and variation in the 45 batches of limestone that are shipped weekly to an important client.
Each batch should weigh approximately 930 pounds
Ex4: Suppose you work in a plant that manufactures picture tubes for televisions. For each lot, you pull
some of the tubes and do a visual inspection. If a tube has scratches on the inside, you reject it. If a lot
has too many rejects, you do a 100 per cent inspection on that lot
Examples
Ex5: You work in a toy manufacturing company and your job is to inspect the number of defective bicycle
tires. You inspect 200 samples in each lot and then decide to create a control chart to monitor the number
of defectives. To make the chart easier to present at the next staff meeting, you decide to split the chart
by every 10 inspection lots
Ex6: Suppose you work for a linen manufacturer. Each 100 square yards of fabric can contain a certain
number of blemishes before it is rejected. For quality purposes, you want to track the number of
blemishes per 100 square yards over a period of several days, to see if your process is behaving
predictably
Ex7: As production manager of a toy manufacturing company, you want to monitor the number of defects
per unit of motorized toy cars. You inspect 20 units of toys and create a control chart to examine the
number of defects in each unit of toys
Implementation
Elements of good implementation planning:

Objectives
Incorporation of pilot learning
Resources and time frame
Influence strategy
Control plan
Documentation
Implementation strategy
32-Port Patch Panel
32-Port
Patch Panel
Workgroup
Hub
SW-Wing, 4th-Flr.
Cardiology Nurse Station
32-Port Patch Panel
Workgroup
Hub
SE-Wing, 8th-Flr.
OB/GYN Nurse Station
32-Port Patch Panel

Cisco 7507
Multiprotocol
Router
Cabletron MMAC
Workgroup
Plus Chassis
Hub
Fiber Patch Cords SE-Wing, 3rd-Flr.
TI-CAT/MRI Nurse Station
32-Port Patch Panel

64-Port
Patch Panel
Workgroup
Hub
NW-Wing, Bsmt. Computer Room SE-Wing, Gnd.-Flr.
ER Nurse Station
TITLE DESCRIPTION
SCALE NTS DATE 12/15/96
A Visio sample drawing file showing the application of shapes from various
Sample Logical Diagram Network Equipment stencils in constructing a logical network diagram. REVISED
DRAWN
BY JL
Quality of solution Acceptance of solution

X
Effectiveness of implemented solution
Acceptance strategy
Key constituents map Stakeholders analysis

Project Impact Profile Stakeholder Analysis
Names Strongly Moderately Neutral Moderately Strongly Additional Pertinent Information
Against Against Supportive Supportive
80
60 70
Customers X
Associates
380
90 X
50 50 Mid
Management
X
20 20
40 30
SLT X
Quality
HR Finance Operations Unit 1 Unit 2 SWAT
Team
X
Unit 3 Unit 4 Unit 5 Unit 6 Unit 7
Identify stake holders to be addressed first Identify stakeholder support profile
Influence strategy TPC analysis
Identify Cause of
Issue/Concern Strategy Examples Ranking
Wins resistance
Stakeholder 1 Data Technical
Stakeholder 2 Demonstrate Political
Stakeholder 3 Demand Cultural
Determine influence strategy Identify causes for stakeholder resistance
Acceptance Strategy
Key constituents map: This tool is used for mapping out the size of the
stakeholder team that would be affected by the change that is going to be
implemented. The tool helps the team identify what should be the right
composition of the implementation team (proportional to the key constituents map
sections). It also helps determine (based on size) the stakeholder that needs to be
addressed first
Stakeholder analysis: Stakeholder analysis helps provide an insight on the

extent of support/resistance that should be expected by the project team during
the implementation of the project. It also establishes the requirements for
successful implementation for the project team. Using this information the team
would be able to determine which key stakeholders need to be influenced or
sought support from during the implementation
Implement solution
32-Port Patch Panel
32-Port
Patch Panel
Workgroup
Hub
SW-Wing, 4th-Flr.
Cardiology Nurse Station
32-Port Patch Panel
Workgroup
Hub
SE-Wing, 8th-Flr.
OB/GYN Nurse Station
32-Port Patch Panel

Cisco 7507
Multiprotocol
Router
Cabletron MMAC
Workgroup
Plus Chassis
Hub
Fiber Patch Cords SE-Wing, 3rd-Flr.
TI-CAT/MRI Nurse Station
32-Port Patch Panel

64-Port
Patch Panel
Workgroup
Hub
NW-Wing, Bsmt. Computer Room SE-Wing, Gnd.-Flr.
ER Nurse Station
TITLE DESCRIPTION SCALE NTS DATE 12/15/96
A Visio sample drawing file showing the application of shapes from various
Sample Logical Diagram Network Equipment stencils in constructing a logical network diagram. REVISED
DRAWN
BY JL
Issue/Concern Identify Wins Strategy
Stakeholder 1 Data
Demonstrate
Stakeholder 2
Demand
+
Stakeholder 3
Project management tools Successful

Implementation
Six Sigma
Work out session
Summary

TEXT 5/19/2015 241
5/19/2015 241241
Project closure
Essentials of project closure:

Document and communicate results
Recommend translation opportunities
Evaluate team success-results, process and relationships
Celebrate
Disband project team
Six Sigma
Work out session
Introduction to
Quality Function
Deployment (QFD)

TEXT 5/19/2015 243
5/19/2015 243243
Thank You
Nitesh Jain - KPMG

niteshjain@kpmg.com
www.in.kpmg.com
2015 KPMG, an Indian Registered Partnership and a member firm of the KPMG
network of independent member firms affiliated with KPMG International Cooperative
(KPMG International), a Swiss entity. All rights reserved.
The KPMG name, logo and "cutting through complexity" are registered trademarks or
trademarks of KPMG International Cooperative ("KPMG International").

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Lean Six Sigma

Green Belt training programme

Metric A metric that demonstrates quality

A benchmark for product

. . . Effectively manage process performance

1 Management 2 Process 3 Standard

View processes/measures A statistical measure of a The Greek symbol sigma

Satisfying customer needs

CEO Bob Gelvin was

Bill Smiths solution was

The goal was 68 per cent

There was a strong emphasis on training with

The return was USD800 million within

Six Sigma is a disciplined, data-

A philosophy Make fewer mistakes in all that we do

A metric A measuring system

A structured approach to help continuous improvement

98.930 per cent 99.99966per cent

5,000 incorrect surgical operations 1.7 incorrect operations per week

Quality the cause not the effect

Six Sigma Part per Million (PPM)

Mumbai's Dabbawala are at more than Six Sigma level

The basic objective

Impact on cost of poor qual

PPM 3 233 6210 66807 308537 5000000

Sweet fruit - Design for Six Sigma 6s

Low hanging fruits 3s

Logic and intuition quick hits 2s

Increase in Sigma value - helps in an exponential decrease in rejections

Champion Master Black Belt Black Belt Green Belt

Leadership: Teach 6 Lead 6 project Learn/Use 6

Eighty-five percent of the

Following approaches are adopted:

Define 1. What are customer expectations of the process

Measure 2. What is the frequency of defects?

Analyse 3. Why, when and where do defects occur?

Improve 4. How can we fix the process

Control 5. How can we make the process stay fixed?

1 Determine the project CTQS 3 Charter

2 Define the project 4 Map the process

Deliverables: CTQs, identified, charter, SIPOC

Define Measure Analyse Improve Control

Team Identify Process

The business case Translate customer Business

The problem statement: What is problem/improvement scope with baselines and

The goals and objectives- Targeted improvements, directions, deadlines, progress

Business Explanation of why to do this project

People, expectations, Description of the

Key steps and dates to Project Process dimensions,

Problem area/drudgery/cumbersome activity

Why is this project worth doing?

Why is it important to do now?

What are the consequences of not doing this

What activities have higher or equal priority?

How does it fit with business

Problem and goal

The purpose of the

The goal statement then

Is the problem based on observation (fact)

Does the problem statement prejudge a root cause?

Can data be collected by the team to verify

Is the problem statement too narrowly or

Is a solution included in the statement?

Would customers be happy if they knew we