<ul><li>What is Six Sigma….. A brief History & Philosophy. </li></ul><ul><li>Introduction to Six Sigma Key Concepts. </li></ul><ul><li>Purpose of Six Sigma </li></ul><ul><li>Components of Six Sigma. </li></ul><ul><li>Six Sigma Problem Solving Method. </li></ul><ul><li>DMAIC Methodology. </li></ul><ul><li>eRevMax …the Six Sigma Way. </li></ul><ul><li>Six Sigma— Benefits? </li></ul><ul><li>Questions. </li></ul>6
6 Origin of Six Sigma Philosophy <ul><li>1980’s Motorola Develops Six Sigma Raised Quality Standards. </li></ul><ul><li>GE Promotions, Profit Sharing (Stock Options), etc. directly tied </li></ul><ul><li>to Six Sigma training. </li></ul><ul><li>Other Companies Adopts Six Sigma : </li></ul><ul><ul><li>Dow Chemical, DuPont, Honeywell, Whirlpool. </li></ul></ul>
6 <ul><li>It is a Philosophy </li></ul><ul><ul><li>Anything less than ideal is an opportunity for improvement </li></ul></ul><ul><ul><li>Defects costs money </li></ul></ul><ul><ul><li>Understanding processes and improving them is the most efficient way to achieve lasting results </li></ul></ul><ul><li>It is a Process : </li></ul><ul><ul><li>To achieve this level of performance you need to: </li></ul></ul><ul><ul><li>Define, </li></ul></ul><ul><ul><li>Measure, </li></ul></ul><ul><ul><li>Analyse, </li></ul></ul><ul><ul><li>Improve and </li></ul></ul><ul><ul><li>Control </li></ul></ul><ul><li>It is Statistics: </li></ul><ul><li>6Sigma processes will produce less than 3.4 defects per million opportunities </li></ul>Overview of Six Sigma
6 Six sigma differs from traditional quality improvement programs by focusing on controlling inputs, as opposed to monitoring outputs. Six Sigma Overview While traditional process improvement methods depend on measuring outputs and establishing control plans to shield customers from organizational defects, a six sigma program demands that problems are addressed at the input root-cause level. This eliminates the need for unnecessary inspection and rework of output products or services . <ul><li>In its most fundamental form, Six Sigma is a measure of the number of defects in a specific process or operation -- for example, a manufacturing process used to make a specific part. In Six Sigma, you're not worried about defective parts as a whole, but something called defect opportunities . A defect opportunity takes into account three important variables: </li></ul><ul><li>All of the different defects that occur on an assembled part. </li></ul><ul><li>The number of places on that part where the defects can occur. </li></ul><ul><li>And every production step that could cause one or more of the </li></ul><ul><li>defects on the part. </li></ul>
As an example, we are developing Software. Two major defects typically related to these software are a) Server Connection failure b) Application Interface not Supported by HDD. Now let's say those defects are found only on 3 of products out of 6. Finally lets assume there are 3 steps in the developing process where those defects are typically introduced. Clearly, there are several opportunities for a defect to occur. To calculate how many, you simply multiply: 2 x 3 x 3, for a total of 18 opportunities. Now, if you find connection failure in 5 percent of the software that come off the develop line, the number of defects per opportunity is .00278 (.05 divided by 18). To find the number of defects per thousand opportunities, you multiply .00278 by 1,000 to get 2.78. Motorola engineers decided that the defects-per-thousand metric wasn't sensitive enough for their new Six Sigma initiative.They decided that defects per million opportunities (DPMO) eliminated errors due to small sample size and made for a more accurate determination of quality. To find the number of defects per million opportunities in our example above, we multiply .00278 by 1,000,000 to get 2,780 DPMO.
6 Six Sigma is a highly disciplined process that helps us focus on developing & delivering near-perfect products and services. “ Sigma” is a statistical term that measures how far a given process deviates from perfection. What is Six Sigma? 1 12 2 3 4 5 6 7 8 9 10 11 1 1 1 1 1 1 6 LSL USL
6 Practical Meaning 99% Good 99.99966% Good Postal System 20,000 Lost Articles Of Mail / Hr 7 Lost Articles / Hr Airline System Two Short/Long Landings / Day 1 Short / Long Per 5 Years Medical Profession 200,000 Wrong Drug Prescriptions / Year 68 Wrong Drug Prescriptions
Width of landing strip 1/2 Width of landing strip If pilot always lands within 1/2 the landing strip width, we say that he has Six-sigma capability. Pilot’s Six-Sigma Performance 6
Purpose of Six Sigma KANO Model of Customer Needs 6 So far customer satisfaction was mostly seen as a one-dimensional construction - the higher the perceived product quality, the higher the customer’s satisfaction and vice versa. The basic questions to face were, Which products and services can be used to obtain a high level of customer satisfaction? Which product features have a more than proportional influence on satisfaction, and which attributes are an absolute must in the eyes of th e customer? But fulfilling the individual product requirements to a great extent does not necessarily imply a high level of customer satisfaction. It is also the type of requirement which defines the perceived product quality and thus customer satisfaction. In his model, Prof. Kano (Kano, 1984) distinguishes between three types of product requirements which influence customer satisfaction in different ways when met :
6 Must-be requirements/ Basic Attributes: If these requirements are not fulfilled, the customer will be extremely dissatisfied. On the other hand, as the customer takes these requirements for granted, their fulfillment will not increase his satisfaction. The must-be requirements are basic criteria of a product. Fulfilling the must-be requirements will only lead to a state of "not dissatisfied". The customer regards the must-be requirements as prerequisites, he takes them for granted and therefore does not explicitly demand them. Must-be requirements are in any case a decisive competitive factor, and if they are not fulfilled, the customer will not be interested in the product at all. One-dimensional requirements / Performance Attributes: With regard to these requirements, customer satisfaction is proportional to the level of fulfillment - the higher the level of fulfillment, the higher the customer’s satisfaction and vice versa. One-dimensional requirements are usually explicitly demanded by the customer.
6 Attractive requirements/ Excitement Attributes: These requirements are the product criteria which have the greatest influence on how satisfied a customer will be with a given product. Attractive requirements are neither explicitly expressed nor expected by the customer. Fulfilling these requirements leads to more than proportional satisfaction. If they are not met, however, there is no feeling of dissatisfaction.
6 Unspoken Spoken Performance Customer Disatisfaction Change Time Customer Satisfaction Excitement features: Initiate satisfaction if they are offered. They increase the noticed benefit of the core functionality Performance features: Attributes which lead as well to satisfaction as to dissatisfaction Basic features: Minimum features which represent the Core functionality of a product or a service Exceeds all Customer’s requirements + Better Communication with the customers + Understand customers and their needs + Ultimately Customer Satisfaction
6 So Why Six Sigma ? or What ‘s the Purpose of Six Sigma <ul><li>Helps Improving performance by flawless execution. </li></ul><ul><li>Achieving rapid breakthrough improvement. </li></ul><ul><li>Applying advanced breakthrough tools that work. </li></ul><ul><li>Making a positive and deep cultural change. </li></ul><ul><li>Retaining People. </li></ul><ul><li>Reducing Cycle Times. </li></ul><ul><li>Keeping up with Technology Advances. </li></ul><ul><li>Structuring for Flexibility. </li></ul><ul><li>Responding More Quickly. </li></ul><ul><li>Growing Overseas Markets . </li></ul><ul><li>Getting Real Financial Results . </li></ul>
6 <ul><li>Define Phase </li></ul><ul><li>Module 1: Capture Voice of Customer Identifying the Customer - clients and end users </li></ul><ul><ul><ul><li>Capturing the Voice of Customer (VoC) - surveys, complaints, monitoring results. </li></ul></ul></ul><ul><ul><ul><li>Map VoC to Critical to Quality (CTQ) measures </li></ul></ul></ul><ul><ul><ul><li>Module 2: Project Charter and Plan </li></ul></ul></ul><ul><ul><ul><li>High Level Process Mapping from End to End </li></ul></ul></ul><ul><ul><ul><li>Develop Project Team Charter </li></ul></ul></ul><ul><ul><ul><li>Select Process Ys the critical differentiators in the ITeS industry </li></ul></ul></ul><ul><li>Measure Phase </li></ul><ul><ul><li>Module 3: Process Performance Metrics through looking at internal and external benchmarks or customer expectations and identifying units, defects and opportunities </li></ul></ul><ul><ul><li>Module 4: Collecting and Summarizing Data covering data collection plans and sampling </li></ul></ul><ul><ul><li>Module 5: Measurement Systems e.g. calibration, skill measurement </li></ul></ul><ul><ul><li>Module 6: Analyze Process Capability particularly in the context of SLA and business objectives </li></ul></ul><ul><ul><li>Module 7: Improvement Goal for e.g. increases FTR by 5%, reduce AHT by 5%, improve transaction accuracy by 2% </li></ul></ul>
6 <ul><li>Analyze Phase </li></ul><ul><ul><li>Module 8: Exploratory process and data analysis to identify causes e.g. agent vintage, agent background, training score, transaction type etc. </li></ul></ul><ul><ul><li>Module 9: Hypothesis Testing to narrow down to few vital Xs </li></ul></ul><ul><li>Improve Phase </li></ul><ul><ul><li>Module 10: Solution Generation and Design of Experiments (DOE) e.g. AHT vs. transaction quality, service level vs. customer satisfaction </li></ul></ul><ul><ul><li>Module 11: Risk Mitigation through piloting, FMEA and error proofing </li></ul></ul><ul><ul><li>Module 12: Measurement System Reanalysis </li></ul></ul><ul><li>Control Phase </li></ul><ul><ul><li>Module 13: Controlling through documentation, Statistical Process Control and Response Plan </li></ul></ul><ul><ul><li>Module 14: Project Closure </li></ul></ul>
6 Some of the key Six Sigma Tools which could be used for the Six Sigma Analysis of eRevMax Process. Cause & Effects Matrix Fishbone Charts Basic Statistics Failure Modes & Effects Analysis (FMEA) Control Charts and Statistical Process Control (SPC) Measurement Systems Analysis Gage R&R Pareto Charts Sigma Capability Computations Multi-Vari Analysis Hypothesis Testing Design of Experiments Mistake Proofing Control Plans ANOVA Linear and Multiple Regression Chi Square Tests
6 <ul><li>Implementing a Customer Satisfaction Metric </li></ul><ul><li>Organizations evaluate themselves by measuring customer satisfaction with their products or services. As organizations evolve, the measurement of customer satisfaction across the entire organization becomes imperative. The first step is for an organization to implement a metric for tracking customer satisfaction. </li></ul><ul><li>To develop a metric, an organization should explore these questions: </li></ul><ul><li>Who are its customers? </li></ul><ul><li>What type of survey should be administered to them? </li></ul><ul><li>How will satisfaction be measured across the organization? </li></ul><ul><li>The answers to these issues, along with an understanding of the Servqual survey framework and a voice-of-the-customer (VOC) matrix, will aid in the implementation of a customer-satisfaction metric. </li></ul><ul><li>Understanding the Customer </li></ul><ul><li>A rule for implementing a satisfaction metric is that customer satisfaction must be measured for every function and every service of an organization. There are usually many interlinks among the services and products within an organization. For instance, a typical information technology (IT) company provides a variety of different products in the market and, in addition, a number of services for those products, such as help-desk or desk-side support, IT infrastructure, and network security. </li></ul><ul><li>In such a complex IT organization, the services get classified into functions, such as sales and operations. Thus, the first step is to identify the customers, both internal and external, for each of the functions throughout the organization. </li></ul><ul><li>For example, for the application development team, customers would include the application users, along with some internal people to whom services are catered. </li></ul><ul><li>Dimensions of Customer Satisfaction </li></ul><ul><li>The next step is to determine the strategy for collecting the VOC. The challenge is to develop survey questionnaires to measure customer satisfaction with the various aspects of a product or service, such as the actual product, the processes followed (for instance, for a warranty), and the quality of service. </li></ul><ul><li>There are different theories for understanding customer needs and arriving at specific factors for measuring customer satisfaction. One widely used framework for measuring customer satisfaction is Servqual, developed in the 1980s by Valarie A. Zeithaml, A. Parasuraman and Leonard L. Berry. The method is also known as the RATER model, because it prescribes measuring satisfaction in these five dimensions: </li></ul><ul><li>Reliability – A company’s ability to perform the promised service dependably and accurately </li></ul><ul><li>Assurance – The knowledge, competence and courtesy of employees and their ability to convey trust and confidence </li></ul><ul><li>Tangibles – Physical facilities, equipment and appearances that impress the customer </li></ul><ul><li>Empathy – The level of caring, individualized attention, access, communication and understanding that the customer perceives </li></ul><ul><li>Responsiveness – The willingness displayed to help clients and provide prompt service </li></ul>
6 Statistical Process Control Continuous Improvement Process Design/Resign Analysis Of Variance Balance Scorecard Voice of The Customer Creative Thinking Design of Experiments