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Skype session 1- Roles of a Six Sigma Professional

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This is a small write up on the Skpe Session conducted by AIG on few key roles & responsibility of a Six Sigma Professional.

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Skype session 1- Roles of a Six Sigma Professional

  1. 1. Skype Session 1 September 28 2013 [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] [Type the document subtitle]
  2. 2. Contents Contents................................................................................................................................................2 Setup measurement system for governance of CPM............................................................................3 Customer Metrics..............................................................................................................................3 Organizational Metrics.......................................................................................................................4 Help setup Targets, PPMs, & PPBs.....................................................................................................4 Statistical Baselining :........................................................................................................................4 Process Performance Model..............................................................................................................8 Improvement Projects...........................................................................................................................9
  3. 3. • PPM – Process Performance Models • Process Performance Baselines Setup measurement system for governance of CPM Data is an imperative part of success of any six sigma initiative, and it is hence imperative that we help setup measurement system. Setup of measurement system should be looked at two areas : 1) Customer Metrics 2) Organizational Metrics Customer Metrics Organizations that have to do well have to be super careful about what they deliver to the customer and it is even more critical that one sets up identification of CTQs for the customer that makes sense to the customer. Organizations shall have to make endeavour to understand the needs the customer and design the processes to meet the customer need. Kano and QFD could be great tools to be deployed for the same. You must conducts surveys to understand what the customer needs and ensure that we work to setup right metric at the right place so that the King’s voice is not lost.
  4. 4. Organizational Metrics Organizational success shall need to be measured. There shall be care in developing the right kind of metrics focus on: 1) Organizational Success Factors like Revenue, Margin, Profit etc etc. 2) Organizational Process Success around customer focussed processes eg. Processes created to support the Customer metrics Help setup Targets, PPMs, & PPBs PPM - Process Performance Models PPB - Baselines Organization shall look up to its Six Sigma fraternity to help derive mathematical models of decision making, setup up process performance baselines, help with mathematical models of forecasting etc. Statistical Baselining : One imperative activity that the Organization shall look up to its black belt fraternity shall be baselining that shall subsequently be used to decide targets or goals or to ratify the established goals. Usage of Hypothesis tests shall be a great method to baseline the performance. Illustrated below are some typical test and their examples. P.S. Setup of PPBs are a mandate for High Maturity CMMI Implementation.
  5. 5. One Sample T- This test is used when the data is in continuous form, normally distributed and one has to baseline Mean of the process. This test will publish a Confidence Interval of the mean based on the sample data provided. For Example- AIG has to baseline the sales mean. Conducting a One sample T, and will also publish a CI, say 9.0 Lacs- 11 Lacs. Hence if historical data were to be used for baseline we would agree to anything between the CI. P.S. For Improvement we must seek a value above the CI, i.e. if an improvement project is being done target shall have to be greater than 11.0 Lakhs One Sample Sign- This test is used when the data is in continuous form, non-normally distributed and one has to baseline Median of the process. This test will publish a Confidence Interval of the median based on the sample data provided. For Example- AIG has to baseline the median working hours of its employees. Conducting a One sample Sign Test, will provide us the sample median say 9Hours, and will also publish a CI, say 8 Hours- 9.8 Hours, meaning that currently AIG’s median employee working hours is between 8-9.8. Hence if historical data were to be used for baseline we would agree to anything between the CI. P.S. For Improvement we must seek a value above the CI, i.e. if an improvement project is being done target shall have to be greater than 9.8 hours
  6. 6. One Variance Test- This test is used when the data is in continuous form, normal/non-normally distributed and one has to baseline Variance/Standard Deviation of the process. This test will publish a Confidence Interval of the Variance/Standard Deviation based on the sample data provided. For Example- AIG has to baseline the Variance/Standard Deviation of Training hours of its trainers. Conducting a Variance/Standard Deviation Test, will provide us the sample Variance/Standard Deviation say 5.5Hours, and will also publish a CI, say 4 Hours- 6 Hours, meaning that currently AIG’s median employee training hours is between 4-6. Hence if historical data were to be used for baseline we would agree to anything between the CI. P.S. For Improvement we must seek a value above the CI, i.e. if an improvement project is being done target shall have to be greater than 9.8 hours
  7. 7. 1 Proportion Test – Should u have data in binary ( quality measured as pass fail etc) you can use the 1P Test to baseline the performance. Alternatively should u have event information and want to baseline the proportion of the same u may use 1P to baseline the same. 1 Poisson Rate – Should u have rate information (like count per day) u may use 1 Poisson Rate test to baseline performance.
  8. 8. Process Performance Model Once your CPMs are identified, you may want to identify smaller Ys for which you may want to brainstorm and identify Xs. Once the above exercise is done, you may want to gather data around Y and Xs. Once data is collected, one should conduct hypothesis testing to see what Xs impact Y. Once the vital few have been identified one shall need to create a transfer function for the same.
  9. 9. Improvement Projects
  10. 10. Improvement Projects

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