Six Sigma Yellow Belt


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Folks, Get to know what Six Sigma is and also get Yellow Belt certified in few powerful slides...

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Six Sigma Yellow Belt

  2. 2. Objectives • Understand the need for Six Sigma • Explain the Six Sigma DMAIC process • Clarify the roles of the Sponsor and the Project Leader • Understand the key differences between traditional problem solving methods and the Six Sigma approach • Demonstrate the 7 basic tools • Develop an awareness of the various Six Sigma tools and their applicability • Outline the key attributes of a Six Sigma project
  3. 3. Overview Section A: Six Sigma Concepts Section B: Six Sigma Roles and Responsibilities
  5. 5. Six Sigma Customer focused business improvement process.  Defect reduction in a process or product.  Common measurement scale called the Sigma capability or Z.  Six Sigma capability corresponds to an efficiency of 99.9996%.  Six Sigma is a Business Philosophy
  6. 6. History Six Sigma was developed by Bill Smith, QM at Motorola  It’s implementation began at Motorola in 1987  It allowed Motorola to win the first Baldrige Award in 1988  Several major companies in the world have adopted Six Sigma  since then .…and applied to Manufacturing processes to improve product quality Texas Instruments, Asea Brown Boveri, AlliedSignal, General Electric, Bombardier, Nokia Mobile Phones, Lockheed Martin, Sony, Polaroid, Dupont, American Express, Ford Motor,……. GE applied the Six Sigma methodology to improve all business  processes and it became a way of running the business. Six Sigma is a Competitive Tool
  7. 7. Expectations of People Capability LEVEL CONTENT COMPETENCY Everybody should Characterize & 50,000 feet view understand, use & teach Optimize Executives - understand Define, Measure, 500 feet view Managers - understand, Analyze, Improve & use and teach (YB) Control Managers understand, 3 + 12 step process 5 feet view Project Leaders understand, use and teach (GB/BB) GB/BB understand, use Tools (info synthesis Ground level MBB teach and statistics) Applicable at all levels
  8. 8. The Standard Deviation s = S (X – 2 X) m 1 Sigma - 68% n-1 2 Sigma - 95% 3 Sigma - 99.73 % 1s p(d) Upper Specification Limit (USL) T USL Target Specification (T) Lower Specification Limit (LSL) Mean of the distribution (m) 3s Standard Deviation of the distribution (s)
  9. 9. What Is Six Sigma A 3s process because 3 standard deviations fit between target and spec Before Target Customer 3s Specification 1s 0.27% Defects up-to 6.6 % 2s 3s Customer Specification Target After 6s ! 1s 2s No Defects! 3s 4s 5s 6s Reducing Variability Is The Key To Six Sigma
  10. 10. The Focus of Six Sigma f (X) Y   X1 . . . XN Dependent   Independent Output   Effect Input-Process  Symptom  Cause  Monitor  Problem  Control Would you control target or the shooter to get the Gold Medal?
  11. 11. The Eye of the Beholder Customer’s View How did Supplier influence my A C Performance? Handling Defects found at my end Customer Process A B C Supplier Process How did I do against my Supplier’s A B Obligations? View Handling Damage at my end
  12. 12. Focusing on Average Average River Depth -4ft Focus on Average can turn your business red
  13. 13. The Need for Six Sigma How are we viewed by our customers? • Reactionary, not preventative • Adequately responsive to customer needs • Problems not permanently solved • Hard perennial problems not solved. • Inconsistent • Flawed Startups Customers look for our competitors
  14. 14. The Need for Six Sigma How do we want to be viewed by our customers? • Proactive • Quick, agile • Having robust products • System experts • Flawless during startups • Continuously improving through an Enterprise-wide problem prevention/problem solving culture Our Customers’ Best Supplier
  15. 15. The DMAIC Methodology OUTPUT INPUT STEP You have a problem Define Identify Project, People and definition and a thorough Process execution plan Ensure you have output You ensure reliable Measure measures for process and analyses and decisions reliable ways of measuring it You understand the Find the gaps between current and Analyze problem now final states You have the solution to Improve Find root causes and develop the problem solution Communicate, standardize and You have ensured sustained Control document the improvement improvement
  16. 16. Where to apply….. ... Can Be Applied To Every Business Function Marketing Engineering Purchasing HR 6 Sigma Methods Finance Manufacturing Software
  17. 17. Example - Pizza Delivery Service Dabbawala and Co. a fast food company, owned by Mr. Dabbawala Pizza runs a pizza delivery service in and around Delhi. Dabbawala and Co. which was doing very well over the last four years, notices a drop in sales over the past five months. Customer complaints about deliveries have been gradually on the rise. Several complaints from customers regarding irregular deliveries were bothering Dabbawala. He had increased the number of delivery personnel to improve delivery performance. But his customers were still leaving him. Pizza Hut, a multinational fast food chain, had set up shop in downtown and was becoming more popular with the customers. Dabbawala neither had the financial muscle to match Pizza Hut’s advertising blitz nor could afford the expensive packaging to lure his customers back.
  18. 18. The Define Phase Grow Divisional directive revenues 1. How does the customer view Dabbawala’s Quality? Improve Plant objectives Sales 2. Who are the stakeholders - Customer and Process Improvement Team? Get more Functional goals orders 3. Which of his processes should he try to improve in So what’s order to improve Sales? Employees new
  19. 19. The Define Phase - Step A A. IDENTIFY PROJECT CTQs: A requirement of the customer is that the Pizza should be delivered on time. Thus for the customer, Delivery is Critical to the Quality of Dabbawala’s service (CTQ). Voice of Customer (VOC) Affinity Diagram CTQ Tree.
  20. 20. The Define Phase - Step B B. DEVELOP TEAM CHARTER: The Business Case Why should the project be done Problem and Goal Statement Description of the problem/opportunity Roles and Responsibilities The team, expectations and responsibilities Stakeholder Analysis, TMAP, Gantt Chart
  21. 21. The Define Phase - Step C C. DEFINE PROJECT SCOPE: Identify the high level process to be improved Define boundaries of project SIPOC Stratification Analysis Contract Sheet
  22. 22. The 7 Basic Tools - 1 STRATIFICATION ANALYSIS: Stratification analysis (Is / Is Not Matrix) is helpful in defining the conditions surrounding the problem - bounding or scoping Is Is Not Distinctions West and North South, East and West and North Geography Delhi are sub- Central Delhi Delhi contracted Mixups, Hygiene, Output Delivery time Temperature Premium service Lower and Middle Customer Higher Income for higher Income income group Increased Time After Aug 09 Before Aug 09 employees in Aug 09
  23. 23. The Define Phase - Summary The Define phase is owned Grow Divisional directive by the Project Sponsor. The revenues three steps of the Define phase are: Widen Customer Plant objectives Base 1. Identify Project CTQ 2. Develop Team Charter 3. Define Project Scope Improve Delivery Functional goals process VOC, Affinity Diagram, Reduce CTQ Tree, Gantt variation in Employees Chart, SIPOC, Stakeholder delivery time Analysis, TMAP, Stratification Analysis
  24. 24. The Measure Phase - Step 1 1. IDENTIFY CTQ CHARACTERISTICS Translate the CTQ to a measurable output of the delivery process Delivery time can be measured in many ways: 1. No. of times the delivery person delivered during the shipping window (Discrete measure) 2. Time taken to travel from Dabbawala’s location to customer location (Continuous measure) 3. Actual delivery time as seen by customer (Continuous measure) Delivery time is the Project Y.
  25. 25. The Measure Phase - Step 2 2. DEFINE PERFORMANCE STANDARDS: What are the customer’s requirements on Delivery time? What is the definition of a defect? 1. Capture the Target (mean) delivery time - On time 2. Get the allowable variation on Y - +/- 30 minutes Loss  (Deviation)2 Loss VOC Competitive Benchmarking Y Target
  26. 26. The Measure Phase - Step 2 The customer tolerance window is 30 minutes on USL LSL either side Customer Customer does not does not This is the want earlier want later target than this than this delivery time 15 30 45 45 30 15 0 EARLY DELIVERY LATE DELIVERY (MINUTES) Visualize customer requirements
  27. 27. The Measure Phase - Step 2 Preparation for data collection: 1. The Y or the Delivery Process Output 2. The Xs or the Inputs to the Delivery Process Generate a list of Xs Brainstorming Process Map (PMAP) Failure Modes Effects Analysis (FMEA) Cause & Effect Diagram or Fishbone Quality Function Deployment (QFD) Prioritization Matrix Check-sheet
  28. 28. The 7 Basic Tools - 2 CHECK-SHEET (DATA COLLECTION FORM) Check-sheet is a data collection sheet used to record occurrences of an event to look for patterns in the data in order to quantify the problem and to facilitate understanding. NO. OF LATE DELIVERIES C a te g o rie s Jan 6 Jan 7 Jan 8 Jan 9 T o ta l M isin te rp re te d llll llll llll llll llll l llll llll llll lll 47 Label llll T raffic llll lll llll llll llll ll 24 P a rk in g lll llll ll ll llll l 18 L a rg e O rd e r llll lll llll ll 15 L o c a tin g h om e ll l l lll 7 O th e rs l ll l 4 Prepare to collect data on the Xs also !
  29. 29. The Measure Phase - Step 3 3. EVALUATE MEASUREMENT SYSTEM: Measurement system may introduce variation into data Actual process variation + measurement variation = data Identify and remove contribution to variation from CAUTION: Objects in mirror measurement system are closer than they appear Ensure reliable data MSE, Gage R&R, Test – Re- test, Kappa Method, Intra- Class Correlation
  30. 30. The Measure Phase - Summary A data collection plan is done in the Measure phase. It sets the expectations for the project. This phase is owned by the Project Leader. The three steps of the Measure phase are: 1. Identify CTQ characteristic 2. Define Performance Standards 3. Evaluate Measurement System The list of tools available for the Measure phase are: Brainstorming, PMAP, FMEA, MSE, GR&R, C&E Diagram or Fishbone, Quality Function Deployment or QFD, Prioritization Matrix, Learn more about the PMAP, FMEA and MSE in the Six Sigma Green Belt Training.
  31. 31. The Analyze Phase - Step 1 4. ESTABLISH PROCESS CAPABILITY •What are the chances of your process creating defects? •Baseline the current process: •Measure variation in current process output •Evaluate against Performance Standards •Understand variation in your data with the help of: Histogram Box and Whisker plot Dot plot Standard Deviation Variance Sum of Squares
  32. 32. The 7 Basic Tools - 3 HISTOGRAM The Histogram is a graphical data summary tool which groups observed data into pre-defined bins in order to analyze the data values and distribution. Target time Delivery time Target time Delivery time Target time Delivery time hrs hrs hrs hrs hrs hrs 12:30 12:18 13:00 12:38 13:30 13:45 12:30 12:26 13:00 13:09 13:30 13:21 13:30 13:34 13:00 12:49 12:00 12:17 13:30 13:42 13:00 13:05 12:00 11:58 13:00 13:07 13:30 13:31 12:00 12:17 13:00 13:06 12:00 12:04 12:00 11:46 13:30 13:23 12:00 12:08 12:00 11:53 13:30 13:41 12:00 12:10 12:30 12:33 12:30 12:26 13:00 13:18 12:30 12:30 12:30 12:37 13:00 13:01 13:30 13:28
  33. 33. The 7 Basic Tools - 3 CREATING A HISTOGRAM: Using the concept of the late and early deliveries, take the target time as the reference, and find the number of minutes by which each delivery is late or early. 1. Subtract Target time for each data point from the Delivery time 2. Define 5 predetermined bins (class intervals) of size equal to 10 minutes, from -25 to 25 on a horizontal line 3. Place each data point vertically in a bin according to its value 4. Draw a bar equal to the height -25 -15 15 25 -5 5 of stacked up points
  34. 34. The Analyze Phase - Step 1 m Dabbawala has an NUMBER OF DATA POINTS average delivery time (m) 2 minutes late and a s standard deviation (s) of 10 minutes 0 45 30 15 15 30 45 EARLY DELIVERY LATE DELIVERY (MINUTES) Measure the process output
  35. 35. The Analyze Phase - Step 1 Customer tolerance m Z= Process standard deviation USL LSL 30 minutes Z= s 10 minutes Z=3 0 45 30 15 15 30 45 EARLY DELIVERY LATE DELIVERY (MINUTES) Measure the Process Output
  36. 36. The Analyze Phase - Step 1 Defects per It is cost Process Million effective to Capability Opportunities 2 308,537 Inspect in Quality 3 66,807 4 6,210 Manufacture in Quality 5 233 Design in Quality 6 3.4 Higher Z implies lower defects
  37. 37. Getting the Competitive Edge Sweet Fruit Design for Processability 5 s Wall, Improve Designs Bulk of Fruit Process Characterization and Optimization 4 s Wall, Improve Processes Low Hanging Fruit Seven Basic Tools 3 s Wall, Beat Up Suppliers Ground Fruit Logic and Intuition Mikel Harry, 1994
  38. 38. Industry Benchmarks Do you know the Sigma capabilities of the following processes? Sigma capability, Z U.S. Manufacturing industry average 4.0 Japanese manufacturing industry average 5.5 Flight fatality in airline industry 6.4 Airline Baggage handling 3.2 Doctor prescription writing 2.8 Tax advice by Internal Revenue Service in U.S. 2.5 Six Sigma is a Metric
  39. 39. The Analyze Phase - Step 2 5. DEFINE PERFORMANCE OBJECTIVES Process Off Target Excessive Variation in Process T a rg e t T a rg e t LSL USL LSL USL Center Reduce Target Process Spread Hypothesis testing LSL USL Understand your Problem
  40. 40. Quiz - Characterize Six Sigma is a What is the Y? A. Statistical Quality Tool A. Measurable Process Output B. Business Philosophy B. Voice of the Customer C. U.S. Management style C. Process Input The goal of Six Sigma is to Who gives the USL and LSL? A. Reduce defects to 3.4 per million A. Management B. Improve products B. Customer C. Reduce variation C. Derived from the process data In the Pizza Delivery Service example, In the example, the Voice of the what is the CTQ? Customer is characterized by A. Lunch A. Delivery time B. Time B. No. of deliveries made C. Delivery C. Tolerance around the Target If a process is Six Sigma (Z=6), it implies In the example, the delivery service is A. Process is 99.99% good characterized by B. Products are 99.99% defect free A. Mean delivery time C. There are only 3.4 defects in a million B. Tolerance around the Target opportunities C. Mean & variation of the delivery time
  41. 41. The Analyze Phase - Step 3 6. IDENTIFY SOURCES OF VARIATION To find root causes or Xs Fishbone or C&E Diagram (Ishikawa) PMAP FMEA QFD Fishbone (Ishikawa) is another of the 7 basic tools. It is also known as the Cause & Effect Diagram. It is a hierarchy of causes that starts with the primary cause and then steps several layers in detail to drive towards possible root causes.
  42. 42. The 7 Basic Tools - 4 FISHBONE MACHINE MOTHER NATURE MATERIALS Sacks Too much traffic Run out of storage too small Weather space on vehicles Unreliable bikes Large items Bus service difficult to carry Too few delivery unreliable in No money for in bus /bikes persons peak hours repairs Too many orders Too many Parking space Delivery persons own junk per person sacks problem Delivery Don’t know Time Cant locate Delivery person routes employees homes does not show up Poor handling of large orders High turnover Not on std routes No training Too few Delivery person gets lost delivery Did not Poor persons Uneven distribution No understand dispatching of delivery loads teamwork labels Get wrong Did not information understand METHODS MAN MEASUREMENT labels Develop a list of Xs that possibly affect Y
  43. 43. The Improve Phase - Step 1 7. SCREEN POTENTIAL CAUSES To find the Vital Few Xs and separate it from the Trivial Many Pareto ANOVA (Analysis of Variance) Regression Chi-Square tests Systematic data generation (if historical data is not sufficient) Design of Experiments (DOE) Statistical Analysis to identify Vital Few Xs
  44. 44. The 7 Basic Tools -5 PARETO This is also called the Pareto Principle or the 80/20 rule and is used to identify the Vital Few Xs. Others Location Order Size Parking Traffic Label Cut-off level to be decided by team consensus based on Process knowledge Resource availability
  45. 45. The Improve Phase - Step 2 8. DISCOVER CAUSAL RELATIONSHIPS To find out effect of Xs on the Y Y Regression Scatter Diagram X2 X1
  46. 46. The 7 Basic Tools - 6 SCATTER DIAGRAM A Scatter Diagram is a graph that shows the relationship between two numerical variables, X and Y DELIVERY TIME SPAN It is used to look for a cause and effect relationship between the two Numerical variables. NO. OF PIZZAS / DELIVERY PERSON In this example, the Scatter Diagram shows that the Delivery time is less if the number of lunches per delivery person is less.
  48. 48. The Control Phase - Step 1 10. VALIDATE MEASUREMENT SYSTEM ON X Ensure noise from LSL USL measurement system sprocess on X is small compared to process variation s Measure smeasurement MSE, GR&R Test - Retest, Kappa Method, Intra Class Correlation Tolerance
  49. 49. The Control Phase - Step 2 11. ESTABLISH NEW PROCESS CAPABILITY USL LSL Z = 4.5 0 45 30 15 15 30 45 EARLY DELIVERY LATE DELIVERY (MINUTES)
  50. 50. The Control Phase - Step 3 12. IMPLEMENT PROCESS CONTROL A good Control Plan should be put in place to ensure sustained improvement. This may include: 1. Use of Control Charts to monitor Xs 2. Documentation of Control Plan 3. Update of process documents such as PFMEA 4. Error Proofing 5. Standardization
  51. 51. The 7 Basic Tools - 7 RUN CHART A Run Chart is a time series plot of data that allows a team to study observed data for trends or patterns over a specific period of time. It captures instances when the process is changing more than statistically expected 30 No. lunches/person 20 10 0
  52. 52. The DMAIC Steps and Deliverables STEP DELIVERABLES A. Identify project CTQs Identify customers, customer CTQs and Business Case B. Develop Team Charter Problem statement, Project Scope,Team, Milestones C. Define Project Scope High Level Process Map connecting customers to process 1. Select CTQ characteristic Identify measurable characteristic of CTQ (Y) 2. Define performance standards Confirm specification limits (requirements) for Y 3. Evaluate Measurement System Ensure measurement system is capable 4. Establish process capability Baseline the current process 5. Define performance objectives Understand statistical objective - reduce variation or shift means? 6. Identify sources of variation List significant causes (Xs) or factors 7. Screen potential causes Determine vital few Xs, which will be controlled 8.Discover variable relationship Find causal relationship and optimal solution 9. Establish operating tolerances Validate the relation and determine specs on Xs 10. Measurement System Evaluation on Xs Ensure X measurement is capable 11. Establish process capability Establish improved capability 12. Implement process control Document control plan It’s a common sense approach
  53. 53. Attributes of a Six Sigma GB project 1. Customer Focused: A Six Sigma GB project should address a customer CTQ 2. Data Driven: In a Six Sigma GB project, decisions should be made using data analysis and not on gut feelings or intuitions 3. Variation reduction: Six Sigma GB projects address the issue of variation in process outputs and is aimed at reducing variation
  54. 54. Quiz Characterize part consists of The Pareto principle is A. Define and Measure A. Also called the 80/20 rule B. Define, Measure and Analyze B. Used to identify the Vital Few C. Define, Measure and part of Analyze C. Useful in the Analyze phase Optimize part consists of Which of the following tools is used to A. Analyze, Improve and Control generate data? B. Improve and Control A. Analysis of Variance (ANOVA) C. part of Analyze, Improve and Control B. DOE C. Regression In Six Sigma, Xs are A. Unknown variables Which of the following cannot identify the B. Excess variation Vital Few Xs? C. Process Inputs A. Analysis of Variance (ANOVA) B. DOE Which of the following is used to list Xs? C. Regression A. DOE B. Fishbone A Six Sigma GB project has to C. Pareto A. Finish in 3 months B. Show dollar savings C. Address the variation issue
  56. 56. Roles and Responsibilities Executive Champion Responsible for providing resources to BB/GBs Help in team selection Track progress of project Generally is supervisor of BB/GB. May help in selection of the project Sponsor Call for need of project (Project identification) Beneficiary of the project Validate current status and status after completion of project Allocates resources for the project Ensure compliance to controls established as a result of the project Project Leader (Black Belt / Green Belt) Lead the project Ask for resources required Call meeting of stakeholders and seek help from EC when stakeholders are not responding Ensure team involvement and sponsor’s buy in for solution Publish weekly progress report & call for help when required
  57. 57. Roles and Responsibilities Deployment Champion Mentor and guide BBs/GBs Provide technical help when BBs/GBs reach a roadblock Publish Summary report of all projects Raise alarm when things are not moving MBB Train BB/GB Assess the skills of BB/GB Certification of GBs and BBs after completion of projects Deployment of Global policies and procedures CFO/Finance Assess the saving potential at start of project Validate savings against the targets achieved at completion of project
  58. 58. Roles and Responsibilities Yellow Belt (YB): Should understand the DMAIC process and use the Six Sigma philosophy (Stakeholder involvement). Green Belt (GB): Should be able to use DMAIC process with basic Six Sigma tools for project execution. Lead Six Sigma projects in their functions. Black Belt (BB): Should be able to use advanced tools in projects and teach Green Belt level techniques / tools. Identifies Six Sigma projects and leads project teams. Mentors Green Belts. Process experts in their functions. Master Black Belt (MBB): Should be able to train Black Belts and Green Belts. Mentors Black Belt projects. Drivers of cultural change. Process experts in any function. Can develop new tools.
  59. 59. The GB Certification Map Basic statistics training (not mandatory for Certification) Six Sigma GB Training Project Application Achieved a Six Sigma score of 5 or Technical A greater in all Certification Yes tool sets? 10 weeks (3 - 5 day training) Based on demonstration of the Six Sigma tools. 3 months avg. • Occurs during project reviews and No on-site visits • Instructor or MBB is responsible Improve Tools and for technical certification. • Evaluation form sent to GB and Application to Project Champion after each session. Project Completed and Final Report Six Sigma Green Belt and A Submitted and Approved by Yes I & CIM Associate Certification Sponsor and Finance No Complete Project and Submit Final Report
  60. 60. Summary • Knowing Customer CTQs • Data driven improvements • Focus on the (Xs) of the process • Application of statistical tools to business problems • Understanding process capability and its impact on quality • An environment that demands only the highest performance standards. Success will be defined when our customers notice !