Tools guide

Company Proprietary GEM International
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Table of Contents
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1. AN OVERVIEW
The term Six Sigma is used in 3 different contexts: A methodology, a metric and a
strategic initiative.
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2. LEAN AND SIX SIGMA
2.1 LEAN
Lean is the continuous elimination of unnecessary, non-value added steps within a
process. It has two primary principles: flow and pull. The principle of flow dates back to
the Ford Motor Company in the early twentieth century when Henry Ford introduced
the assembly line process to produce the Model T. The restocking process in a
supermarket can illustrate the principle of customer pull. Toyota was no doubt one of
the first companies to successfully combine these two concepts and today its Toyota
Production System (TPS) is the flag bearer of what is now commonly called Lean. The
concepts of value, making value flow uninterrupted at the pull of the customer, single
piece versus batch flow, and the elimination of all activities that do not contribute value
to the customer serve as the foundation of Lean.
2.2 SIX SIGMA
As described above, Six Sigma has a statistical background. The lowercase Greek
letter sigma, a, represents the standard deviation of a data set. Standard deviation is a
measure of the variability inherent in the data. There are other measures one can use
to describe a data set, such as the mean or average, which represents the center of
the data set. Both of these measures are important, but being able to reduce the
standard deviation (i.e., remove variation) is key to reducing Cost of Poor Quality
(COPQ) and impacting customer satisfaction. The smaller the value of σ in a data set,
the greater is the process capability. This may not seem intuitive until one realizes that
"σ capability" (like a 4σ or 5σ capability) is defined in terms of "how many σ's" can be
absorbed within a specified tolerance range of a performance measure. So the smaller
the value of σ, the greater the number of (σ's that can be absorbed within a specified
tolerance range and hence the greater the σ capability. Sigma capability is also
directly related to defect rates. A 4σ capable process has 6,210 defects per million
opportunities (dpmo), a 5σ capability is 233 dpmo, and a 6σ capability is 3.4 dpmo.
However, Six Sigma is much more than a mathematical definition. Six Sigma is the
relentless, ruthless pursuit of variation reduction. Six Sigma is about producing better
products and services, faster and at lower cost. In order to do this, we need the tools
in this guide along with leadership to make it happen.

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3. SYNERGY BETWEEN LEAN AND SIX SIGMA
Lean and Six Sigma are complementary in nature and, if done properly, represent a
long-term business initiative that can produce unprecedented results. While Lean
focuses on eliminating non-value added steps and activities in a process, Six
Sigma focuses on reducing variation from the remaining value-added steps. Lean
makes sure we are working on the right activities, and Six Sigma makes sure we are
doing the right things right the very first time we do them. Doing the wrong things
(i.e., performing non-value activities) is purely waste. And worse yet, the investment
we make in becoming extremely proficient at doing the wrong things right the very
first time we do them is also totally waste. Lean and Six Sigma mean simplify and
perfect. Perfecting non-value added steps in a process is useless and wasteful.
Lean defines and establishes the value flow as pulled by the customer, and Six
Sigma makes the value flow smoothly without interruption. The following simple
schematic illustrates this synergistic concept.
4. ELEMENTS FOR SUCCESS
Before we delve into the tools and methodologies of Lean and Six Sigma, it is
important to understand what it means to be successful and what it takes to get there.

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There are many ways to evaluate the success of any initiative or strategy within an
organization. One is to measure the involvement in Lean and Six Sigma by way of
numbers of people involved, i.e., numbers trained, practicing, certified, etc. Another is
to evaluate the leadership on their behavior and values. Yet another would be to
evaluate the Lean and Six Sigma maturity of the organization. All of these measures
are important, but certainly one of the most important aspects that Lean and Six Sigma
have brought to the market place is the ability to measure the financial impact of its
implementation and deployment. We have studied many companies that have
implemented Lean and Six Sigma and have found that if any organization wishes to
place itself in the top tier of companies with regard to financial returns, it should be
returning to the bottom line at least 2% of its revenue annually via Lean and Six Sigma
projects. In order to attain this level of performance, we have found the following ten
elements to be critical, and these must be present and active in any deployment.
(1) Executive ownership and commitment with a strong passion to make it happen.
(2) Leadership alignment.
(3) Building the proper infrastructure and selecting the right people.
- Champions
- Black Belts, Master Black Belts, Green Belts
- Leadership Teams
(4) Selecting the right projects & project teams.
(5) Financial accountability and proactive participation by Finance.
(6) The right training in the right tools
(7) Knowledge sharing and communication.
(8) Customer and supplier involvement.
(9) Rewards and recognition system.
(10) Continuous assessment of projects and deployment/implementation issues.
5. SELECTING PROJECT IDEAS FOR SIX SIGMA
Each process improvement effort is taken up as a project and it is critical that the
project idea is well defined. After the executive team has established the minimum
requirements for projects to be listed for consideration, the team members look for
possibilities. Logically, the same perspectives that guided them in establishing the basic
criteria for projects can guide them in looking for projects to meet those criteria.
Top down. Projects that are most closely aligned with the goals and objectives of
the organization's strategic plan or operating plan
• Did any senior managers recommend or even just mention any possible
projects when they were discussing initiating Six Sigma?

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• Ask the CEO and others at the top what they consider the greatest issues
facing the organization. Then, find projects directly related to those issues.
• Start with financial goals for the organization or key divisions and look for
projects that would allow you to make the most progress toward those goals.
• If the organization has a balanced scorecard or a dashboard or other such
way of tracking metrics toward goals, that's half the battle. Such a system
makes picking projects much easier.
Bottom up. Projects that improve processes that are incurring excessive costs
• Start in the area that's least important financially. What's keeping it from
being more important?
• What processes are generating higher scrap rates, falling below capacity
requirements and/or performance expectations, and/or resulting in large
numbers of customer complaints?
• What are employees complaining about around the water cooler and the
lunch tables? Are they complaining about any processes as being unnecessary,
time-consuming, confusing, or otherwise "not how I would run this company?"
• Do inspections reveal any serious problems with meeting specifications?
Outside in. Projects that would matter most to the customers, projects that would
address concerns raised by audits or cited by regulatory agencies, projects that
result from comparisons with competitors, projects that develop from suggestions
made by suppliers
• Are there any customer complaints that stand out as more serious or more
common? Check complaint logs and files. Talk with your customer service
representatives.
• Ask your customers what they consider the biggest problem with the products
or services they receive from your organization.
• Are there any trends, now or expected, that might change the needs of your
customers?
• Call former customers and ask why they stopped doing business with you.
• Call current customers and ask what they like least about your products or
services.
• Have any audits (internal or external, financial or regulatory) revealed any
issues?
• In what ways is the organization possibly, probably, or even definitely inferior
to any competitors?
• Have any of your suppliers offered suggestions? Ask-especially if they also
supply any of your competitors.
Miscellaneous
• Start in the heart of your organization, the area that's most important in terms of

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employee pride, name recognition in the community, and so on. A success in
this area would have a big impact psychologically as well as financially.
• Start in the area the champion knows best.
• Which projects would generate results most easily?
• Which projects would generate results fastest?
• Which projects would require the least resources, in terms of money or
assets or humans?
• Which projects would affect the most people within the organization?
• Which projects would offer the best opportunity for before-and-after
comparisons on direct and indirect costs and/or benefits?
• Which projects would be easiest? Which could the team give to your Six
Sigma teams to illustrate some successful experiences before taking on
the big projects?
• Bring together employees from various divisions and/or functions as a focus
group to brainstorm.
5.1 PROJECT SELECTION QUESTIONS
Once a potential project has been selected, the following questions can help scrutinize
and refine it.
• What is the process to be considered as a project?
• What are the boundaries? What is to be included in the process and what is
to be excluded?
• Where does the process start and where does the process end?
• What is the impact? Who would be affected by improvements?
• Who are the owners, shareholders, customers, suppliers?
• What are the benefits?
• Financial benefits, in terms of the criteria-resources, time, defects
• Benefits for customers of the process
• Benefits for other people affected by improvements
• Other benefits (depending on the situation-e.g., the organizational culture, the
status of the Six Sigma initiative), such as showing the value of the Six Sigma
initiative or improving morale
5.2 BEWARE OF BAD PROJECTS
Companies that are not experienced in selecting projects tend to make mistakes which
could be avoided with ease. Beware of BAD projects. They can cost you the initiative
itself! But how do you determine if a potential project is a poor choice? We'll look at
several aspects below.

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Impact
First, let's look at four aspects that make a project a poor choice with regard to its
overall impact on business.
1. Revising reports. It might be interesting to create and revise reports for
projects, but such activity doesn't make any money: There's no tangible,
bottom-line outcome. Don't get lost in project materials management; stay
focused on the explicit objective.
2. Quantifying the performance of a process. This is the "getting ready to get
ready" scenario, where a champion or a black belt spend time assessing without
actually fixing any problems. Again, there's no tangible, positive result. Your
energies would be much better invested in actually working on the problem.
3. Improving a supplier's performance without sharing in the benefit. Imagine you
depend on a supplier for a key component and it's defective, so you decide to
help the supplier improve that component. That's logical-but not necessarily
right. While it makes sense to have your supplier fix the component so your
processes are improved, why just give away that corrective measure to the
supplier? When you share your knowledge, there has to be something in it for
you.
4. Reducing cycle time for an operation that's not critical. A common mistake is
to work at reducing cycle time for an operation that's not a bottleneck. If it's not
hurting you, don't fix it. Six Sigma is about getting financial results, not about
improving processes which don't need improvement.
Effort
Second, a project can be considered to be poor in terms of the effort it requires. Here
are some examples:
1. Installing a company-wide computer network. This is a huge undertaking with a
long time horizon. It does not require a black belt to initiate the DMAIC phases to
manage it. It's not a problem; it's a business decision. You just need to do it!
Deploy your Six Sigma teams elsewhere.
2. Improving the profitability of an entire product line. This project is so massive and
complex that you probably won't get the results you want in a defined time span. This
scale of project will frustrate you when you're trying to get fast, quantifiable results.
3. Fixing the annual planning process. Strategic actions such as these are not
appropriate for Six Sigma projects. Why? You don't need to assign a black belt to
lengthy, administrative tasks; his or her efforts are much better spent on tactical,

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results-oriented activities.
Probability of Success
Finally, a poor project can be evaluated with regard to its probability of success. A project
is unlikely to succeed if any of the following conditions holds:
• If it involves improving a process that won't show any substantial benefits for
several months, beyond the three- to six-month period discussed earlier.
• If it depends on the completion of other risky projects.
• If it requires assistance from extremely busy people.
• If it is not aligned with management objectives.
Again, this type of effort lacks definition, schedule, or clear measurement. Without a
disciplined, targeted approach and clearly defined and quantified objectives, poorly
chosen projects likely won't yield the hidden savings you want.
6. THE SIX SIGMA ENGINE - DMAIC
In this phase you will use the tools that will help you take a top-down look at your
processes from a business perspective. It all starts with the customer and what is
important to the customer. You prioritize and focus on the areas where your greatest
opportunities of improvement are. In essence, you define what is important and then
attack it. Your projects should be fairly well defined before leaving this phase.
In this phase, you use the tools to assess current performance. You try to determine
how your process is doing. You don't know what you don't know, and you won't know
unless you measure it. Although some measurement takes place in the Define Phase,
it is not nearly as detailed as the measurement activities that take place in this phase.
As a result it is not uncommon that a project becomes more well-defined in this phase,
with the focus narrowed to insure success. It is also in this phase where you measure
the ‘measurement system’ itself to determine if the data you are getting has integrity.
In this phase, you discover why there is a gap between current performance and your
goals. Detailed tools are used to try to determine the root cause(s) of the problem. You
try to identify relationships between variables and what some of the key process

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indicators are. The result of this phase should present you with several opportunities
for improvement.
In this phase, you use the tools needed to identify and test proposed solutions to the
problem. Many times more data is collected in this phase and further analysis
accomplished. You need to select the best possible solution and then predict the new
capability of the process and/or value stream. Tools for implementing and validating
the improvement are also used in this phase.
In this phase, you monitor the improved process and provide continuous evidence that
the gains are being sustained. You also implement a plan to hold the gains in the
medium to long term.
7. SIX SIGMA ROLES
7.1 MASTER BLACK BELT –
Master Black Belts are Six Sigma Quality experts that act as leaders to drive change
initiatives within an organization. They have deep knowledge of the principles and
processes of Six Sigma, as well as related concepts and methodologies such as Lean,
TRIZ, and Design for Six Sigma. Master Black Belts are qualified to teach Six Sigma
Black Belts, Green Belts, Yellow Belts and Champions the methodologies, tools, and
applications in all functions and levels of the company, and act as resources for
applying statistical process control to projects. The Master Black Belt program
combines in-depth coursework with rigorous testing and a required demonstration of
Thought Leadership through publication and teaching.
7.2 BLACK BELT –
Black Belts are team leaders responsible for the implementation of a Six Sigma
project. They know how to define and successfully launch a project, how to transition it
from phase to phase, and finally, how to complete a project and evaluate its success.
They are adept at applying analytical tools to problem solving, and in utilizing Six
Sigma methodologies in an overall approach to process improvement. Black Belts
often provide guidance and training to Green Belts, and in turn, receive guidance and
training from Master Black Belts.
The Black Belt training process is a robust and spread over several months. During
this time, Black Belt trainees take concepts learned during courses and apply them to
real company projects.

7.3 GREEN BELT –
Green Belts have in-depth knowledge of the Six Sigma methodologies and are integral
members of the team. They play an important role in executing Six Sigma projects on
an organizational level, and have a strong familiarity with existing company products
and processes. They are adept at defining, staffing, presenting, and gathering and
using data to analyze Six Sigma projects.
The Green Belt training consists of intensive training sessions spread out over several
months. Between sessions, students return to their companies to apply the tools and
processes of Six Sigma to their own projects.
7.4 YELLOW BELT –
Yellow Belts generally have some knowledge of Six Sigma, but do not act as the sole
project leader. Yellow Belts participate in Six Sigma projects as subject matter experts,
core team members and process map developers. They are often involved in applying
the principles of Six Sigma to smaller process improvement projects within the
framework of a larger implementation.
7.5 CHAMPION –
A company leader or senior manager who is responsible for identifying projects,
allocating resources and ensuring proper training for leaders involved in Six Sigma
implementations. Champion Training focuses on teaching deployment leaders how to
properly identify Six Sigma projects, foresee potential project obstacles, and set
realistic expectations that ultimately drive financial results.
8. BASIC STATISTICS
Lets review our understanding of some basic statistical concepts at this time. These
will come in handy as we explore the more numerically oriented Six Sigma tools.
Statistics is a means of collecting and analyzing data.
8.1 DATA
Data (Recorded Information) are collections of facts and figures which may either be
available or may have to be collected. E.g. Sales, production, cost, market share,
etc…
The data we encounter every day have valuable information buried in them. They help
us make good decisions in uncertain conditions. Analyzing this data can be revealing
but challenging.
When we acquire a set of data, we should begin by asking some important questions.
Where did the data come from? How were they collected? How can we help the data
tell their story?

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Before starting any type of formal data analysis we should try to get a preliminary
sense of data. For example, we might first try to detect any patterns, trends or
relationships that exist in the data.
We might start by grouping the data into logical categories. Grouping data can help us
identify patterns within a single category or across categories. But how do we do this?
And is this often time-consuming process worth it?
8.2 MEAN OR AVERAGE
The Mean or Average of a set of data is its sum divided by its count.
The mean represents a “balance point” in a set of data values, similar to the fulcrum
on a seesaw. As the only measure of central tendency that uses all the data values in
a sample or population, the mean has one great weakness: individual extremes can
distort the balance point. You should be careful about using this measure if the dataset
you are trying to describe contains extreme values.
8.3 MEDIAN
The middle value in a set of data values for a variable when the data values have been
ordered from lowest to highest value. When the number of data values to be
summarized is even, you can perform take the mean of the middle 2 values as the
Median.
He median splits the set of ranked data values into equal-in-number parts. Extreme
values do not affect the median, making the median a good alternative to the mean
wen such values occur.
8.4 MODE
The Mode is the most commonly occurring data value.
Similar to the median, extreme values do not affect the mode; unlike the median
however, the mode can vary much more from sample to sample, than the median ( or
mean)
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8.5 STANDARD DEVIATION
The standard deviation measures how a set of data values for a variable fluctuate
around the the ean of that variable The numbers are related bcause one of them, the
standard deviation, is the positive square root of the other (the variance).
The variance and standard deviation help you to know how a set of data values
distributes around its mean. For almost all sets of data values, the majority of the
values lie within an interval of plus and minus one standard deviation above and below
the mean. Therefore, determining the standard deviation usually helps you define the
range in which the majority of data values occur.
Day Time Difference:
Time Minus
Mean (39.6)
Square of
Differences
1 39 -0.6 0.36
2 29 -10.6 112.36
3 43 3.4 11.56
4 52 12.4 153.76
5 39 -0.6 0.36
6 44 4.4 19.36
7 40 0.4 0.16
8 31 -8.6 73.96
9 44 4.4 19.36
10 35 -4.6 21.16
Mean 39.6
Sum of Squares 412.4
Standard Deviation (Square Root) 20.30763403
Standard Z-Score
The number that is the difference between a data value for a variable and the mean of
the variable, divided by the standard deviation is its Z-score.
Interpretation
Z-scores help you determine on a standard scale how far a data value is from the
mean.
Z-Score = X - µ
Z-Score = X - µ

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Day Time Difference: Time
Minus Mean (39.6)
Z-Score
1 39 -0.6 0.36
2 29 -10.6 112.36
3 43 3.4 11.56
4 52 12.4 153.76
5 39 -0.6 0.36
6 44 4.4 19.36
7 40 0.4 0.16
8 31 -8.6 73.96
9 44 4.4 19.36
10 35 -4.6 21.16
9. TOOLS
9.1 TOOL: BRAINSTORMING
Brainstorming is a tool that allows for open and creative thinking. It encourages all
team members to participate and to build on each other's creativity.
Brainstorming is helpful because it allows your team to generate many ideas on a topic
creatively and efficiently without criticism or judgment.
Brainstorming can be used any time you and your team need to creatively generate
numerous ideas on any topic. You will use brainstorming many times throughout your
project whenever you feel it is appropriate. You also may incorporate brainstorming
into other tools, such as QFD, tree diagrams, process mapping, or FMEA.
9.2 TOOL: INCLUDES/EXCLUDES
A group exercise used to establish scope and facilitate discussion. Effort focuses on
delineating project boundaries, what is included in the scope of the project and what is
excluded from it.

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Prevents errant team efforts in later project stages (waste). Increases individual
involvement and understanding of team efforts. Helps to orient new team members.
When highlighting the scope of the Six Sigma project in the Define phase.
9.3 TOOL: STAKEHOLDER ANALYSIS
Confirms management or stakeholder acceptance and prioritization of Project and
team efforts.
Helps to eliminate low priority projects. Insure management support and compatibility
with business goals.
Typically in the Define phase for project approval.
9.4 TOOL: DATA COLLECTION PLAN
The Data collection plan is a template that allows the project team to think through the
various aspects of data collection as a team
Failing to establish a data collection plan can be an expensive mistake in a project.
Without a plan, data collection may be haphazard, resulting in insufficient,

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unnecessary, or inaccurate information. This is often called "bad" data. A data
collection plan provides a basic strategy for collecting accurate data efficiently
Any time data is needed, you should draft a data collection plan before beginning to
collect it.
9.5 TOOL: GRPI – TEAM TEMPERATURE
GRPI is an excellent tool for organizing newly formed teams. It is valuable in helping a
group of individuals work as an effective team-one of the key ingredients to success in
a DMAIC project
GRPI is an excellent team-building tool and, as such, should be initiated at one of the
first team meetings.
In the DMAIC process, this generally happens in the Define phase, where you create
your charter and form your team. Continue to update your GRPI checklist throughout
the DMAIC process as your project unfolds and as your team develops
9.6 TOOL: HISTOGRAM
A histogram is a basic graphing tool that displays the relative frequency or occurrence
of data values-or which data values occur most and least frequently. A histogram
illustrates the shape, centering, and spread of data distribution and indicates whether
there are any outliers. The frequency of occurrence is displayed on the y-axis, where
the height of each bar indicates the number of occurrences for that interval (or class)
of data, such as 1 to 3 days, 4 to 6 days, and so on. Classes of data are displayed on
the x-axis. The grouping of data into classes is the distinguishing feature of a
histogram

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It is important to identify and control all sources of variation. Histograms allow you to
visualize large quantities of data that would otherwise be difficult to interpret. They give
you a way to quickly assess the distribution of your data and the variation that exists in
your process. The shape of a histogram offers clues that can lead you to possible Xs.
For example, when a histogram has two distinct peaks, or is bimodal, you would look
for a cause for the difference in peaks.
Histograms can be used throughout an improvement project. In the Measure phase,
you can use histograms to begin to understand the statistical nature of the problem. In
the Analyze phase, histograms can help you identify potential Xs that should be
investigated further. They can also help eliminate potential Xs. In the Improve phase,
you can use histograms to characterize and confirm your solution. In the Control
phase, histograms give you a visual reference to help track and maintain your
improvements.
9.7 TOOL: KANO ANALYSIS
Kano analysis is a customer research method for classifying customer needs into four
categories; it relies on a questionnaire filled out by or with the customer. It helps you
understand the relationship between the fulfillment or nonfulfillment of a need and the
satisfaction or dissatisfaction experienced by the customer. The four categories are 1.
delighters, 2. Must Be elements, 3. One - dimensionals, & 4. Indeifferent elements.
There are two additional categories into which customer responses to the Kano survey
can fall: they are reverse elements and questionable result. --The categories in Kano
analysis represent a point in time, and needs are constantly evolving. Often what is a
delighter today can become simply a must-be over time.
Kano analysis provides a systematic, data-based method for gaining deeper
understanding of customer needs by classifying them
Use Kano analysis after a list of potential needs that have to be satisfied is generated
(through, for example, interviews, focus groups, or observations). Kano analysis is
useful when you need to collect data on customer needs and prioritize them to focus
your efforts.

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9.8 TOOL: NORMALITY TEST
A normality test is a statistical process used to determine if a sample, or any group of
data, fits a standard normal distribution. A normality test can be done mathematically
or graphically.
Many statistical tests (tests of means and tests of variances) assume that the data
being tested is normally distributed. A normality test is used to determine if that
assumption is valid.
There are two occasions when you should use a normality test:
1. When you are first trying to characterize raw data, normality testing is used in
conjunction with graphical tools such as histograms and box plots.
2. When you are analyzing your data, and you need to calculate basic statistics such
as Z values or employ statistical tests that assume normality, such as t-test and
ANOVA."
9.9 TOOL: PARETO CHART
A Pareto chart is a graphing tool that prioritizes a list of variables or factors based on
impact or frequency of occurrence. This chart is based on the Pareto principle, which
states that typically 80% of the defects in a process or product are caused by only
20% of the possible causes
It is easy to interpret, which makes it a convenient communication tool for use by
individuals not familiar with the project. The Pareto chart will not detect small
differences between categories; more advanced statistical tools are required in such
cases.

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In the Define phase to stratify Voice of the Customer data...In the Measure phase to
stratify data collected on the project Y…..In the Analyze phase to assess the relative
impact or frequency of different factors, or Xs
9.10 TOOL: PROCESS MAPPING
Process mapping is a tool that provides structure for defining a process in a simplified,
visual manner by displaying the steps, events, and operations (in chronological order)
that make up a process
As you examine your process in greater detail, your map will evolve from the process
you "think" exists to what "actually" exists. Your process map will evolve again to
reflect what "should" exist-the process after improvements are made.
In the Define phase, you create a high-level process map to get an overview of the
steps, events, and operations that make up the process. This will help you understand
the process and verify the scope you defined in your charter. It is particularly important
that your high-level map reflects the process as it actually is, since it serves as the
basis for more detailed maps. In the Measure and Analyze phases, you create a
detailed process map to help you identify problems in the process. Your improvement
project will focus on addressing these problems. In the Improve phase, you can use
process mapping to develop solutions by creating maps of how the process "should
be."
9.11 TOOL: RUN CHART
A run chart is a graphical tool that allows you to view the variation of your process over
time. The patterns in the run chart can help identify the presence of special cause
variation.

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The patterns in the run chart allow you to see if special causes are influencing your
process. This will help you to identify Xs affecting your process run chart.
Used in many phases of the DMAIC process. Consider using a run chart to 1. Look for
possible time-related Xs in the Measure phase 2. Ensure process stability before
completing a hypothesis test 3. Look at variation within a subgroup; compare subgroup
to subgroup variation
9.12 TOOL: TREE DIAGRAM
A tree diagram is a tool that is used to break any concept (such as a goal, idea,
objective, issue, or CTQ) into subcomponents, or lower levels of detail.
Useful in organizing information into logical categories. See "When use?" section for
more detail
A tree diagram is helpful when you want to
1. Relate a CTQ to subprocess elements (Project CTQs)
2. Determine the project Y (Project Y)
3. Select the appropriate Xs (Prioritized List of All Xs)
4. Determine task-level detail for a solution to be implemented (Optimized Solution)
9.13 TOOL: VOICE OF THE CUSTOMER

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The following tools are commonly used to collect VOC data: Dashboard, Focus group,
Interview, Scorecard, and Survey. Tools used to develop specific CTQs and
associated priorities.
Each VOC tool provides the team with an organized method for gathering information
from customers. Without the use of structured tools, the data collected may be
incomplete or biased. Key groups may be inadvertently omitted from the process,
information may not be gathered to the required level of detail, or the VOC data
collection effort may be biased because of your viewpoint.
You can use VOC tools at the start of a project to determine what key issues are
important to the customers, understand why they are important, and subsequently
gather detailed information about each issue. VOC tools can also be used whenever
you need additional customer input such as ideas and suggestions for improvement or
feedback on new solutions
9.14 TOOL: CTQ DRILL-DOWN TREE
The CTQ tree helps translate the voice of the customer (customer needs and wants
stated in their own words) into measurable process or product characteristics stated in
the organization’s terms with performance levels and specifications that will ensure
customer satisfaction.
Voice of the Customer data is frequently vague and Six Sigma teams may be at a loss
as to how to relate it to the characteristics of the process they are trying to improve
After collecting the voice of the customer (VOC) data and…
When analyzing customer requirements and…
Before determining which quality characteristics need to be improved, especially when
customer requirements are vague, complex or broad.

&&
* 6 ( % %
6 0 <
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C
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6 % ?
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8
!
Mastana burger wishes to improve its home delivery service. They have surveyed
current and potential customers to determine what would make them want to order
Mastana’s Burgers instead of competitors’ burgers or instead of a different type of
food. The results of the open-ended survey were summarized through an affinity
diagram. The customers wanted “Hot burgers, Now, With my choice of meat, at a
reasonable cost”. The GB team at Mastana drilled each of the requirements down
using the CTQ tree. Below is their drill-down for the “Now” requirement.

&)
“Now” could mean 3 things to the customer: “whenever I want the burger”, “Quick &
easy to order” and “delivered ASAP”. These characteristics relate to three broad
aspects of burger deliver service, from the point of view of the customer: service
availability, ordering the service, getting the service. Each of these characteristics is
translated into statements that are measurable and more meaningful to Mastana.
While the first 2 translate readily into actionable CTQ’s, “delivered ASAP” takes
several more levels because “getting the service” - from the customers’ point of view –
is composed of multiple process steps from Mastana’s point of view. Targets are
assigned to each CTQ that will allow Mastana to fine-tune its process to satisfy
customers.
In the ANALYZE phase, Mastana’s GB team determines how its current burger making
process measures up against these targets and identifies elements of the home-
delivery service that must be changed to meet the targets. In the IMPROVE phase,
they pilot test and implement the changes. For instance, they may include an order-
taking checklist which allows an order to be taken with just a few checkmarks and they
might streamline the burger making process to eliminate wasted motion. Those great
ideas, the hows, don’t belong to the CTQ tree. If they come up during discussion of the
CTQ’s, they are written on a separate flip chart and saved for later.
“Now”
Whenever I want the
burger
Delivered ASAP Quick & Easy to
Order
Answer on 1
st
ring
Call duration
< 45 sec
Out-the-door
time < 20 min
Delivery time
< 15 min
Queue time < 8 min
Make time < 2 min
Grill time 9 min
Package time < 1 min
Wait time < 0 min
Service Available
11AM - 12 PM

&+
9.15 TOOL: LOGIC TREE
Tree Diagram is used to break any complex concept (such as a goal, idea, objective,
issue, or CTQ) into subcomponents, or lower levels of detail.
The Tree provides a logical structure to analyze and frame a high-level problem or
issue, while keeping the team linked to the overall or high-level objective.
A Logic Tree is particularly useful …
• %
( 5 % ( (
, (
• (
• 4
•
• ( (
• (
• 5
9.16 TOOL: AFFINITY DIAGRAM
Improve
Business
Goodwill
(Image)
Profitability Revenue Cash Flow Safety
Reduce
Cost
Increase
Price
Reduce
Credit Terms
Optimize
Inventory
Cost of
Production
Facilities Marketing
Cost
Urea
Customers
NPK
Customers
Improve
Business
Goodwill
(Image)
Profitability Revenue Cash Flow Safety
Reduce
Cost
Increase
Price
Reduce
Credit Terms
Optimize
Inventory
Cost of
Production
Facilities Marketing
Cost
Urea
Customers
NPK
Customers

&-
Affinity Diagram is a visual tool that allows teams to organize and cluster a large
number of ideas under common themes to help focus and solve complex problems.
An Affinity Diagram is particularly useful …
• %
•
•
•
• 4 ( 5 (
9.17 TOOL: SIPOC
The SIPOC diagram is a tool that helps identify process outputs and the customers
receiving those outputs. SIPOC stands for suppliers, inputs, process, output, and
customers. You obtain inputs from suppliers, add value through your process, and
provide an output that meets or exceeds your customer's requirements. It is similar
and related to Process Mapping and 'In/Out Of Scope' tools, but provides additional
detail.

&9
Once the customers are identified, voice-of-the-customer data can be collected and
customer requirements can be defined. The SIPOC diagram also helps scope the
project, provides a high-level view of the workflow and helps ensure that all team
members are seeing the project the same way. SIPOC is used by a team to identify all
relevant elements of a process improvement project before work begins. It helps
define a complex project that may not be well scoped.
Typically used in the Define phase of a Six Sigma DMAIC project
9.18 TOOL: FISHBONE DIAGRAM (CAUSE AND EFFECT DIAGRAM)

&:
The Fishbone Diagram or the Ishikawa Diagram is an RCA (Root Cause Analysis)
brainstorming tool. It is used to identify all of the contributing root causes likely to be
causing a problem. This methodology can be used on any type of problem, and can be
tailored by the user to fit the circumstances.
The branched structure provides a framework for teams to have well-researched
discussions around the issue. These methodical discussions improve the efficiency of
the Root Cause Analysis.
The use of this tool has several benefits to process improvement teams:
• % (
• #( ( % .
( %
• ' 4
• E E (
• 4 (
The Fishbone diagram is typically used in project selection for identifying improvement
opportunities, in the Measure phase to identify the project Y, again in the measure
phase to identify reasons for Measure System error and in the Analyze phase to
identify root causes of the problem.

&;
9.19 TOOL: CNX
CNX is a categorization tool used to sort the various root causes of a problem. The
causes are categorized as controllable (can be held constant “C”), noise (too difficult
or expensive to control “N”) or experimental (factors which must be investigated to
understand their impact “X”).
It is usually challenging (even prohibitive) to work on every single cause of a problem.
The CNX categorization helps direct the team’s efforts towards those causes which
have the most impact on the problem
CNX is used right after the Fishbone diagram.
9.20 TOOL: POKA YOKE (MISTAKE PROOFING)
A poka-yoke device is any mechanism that either prevents a mistake from being made
or makes the mistake obvious at a glance. The ability to find mistakes at a glance is
essential because "The causes of defects lie in worker errors, and defects are the
results of neglecting those errors. It follows that mistakes will not turn into defects if
worker errors are discovered and eliminated beforehand" [Shingo 1986, p.50].
"Defects arise because errors are made; the two have a cause-and-effect relationship.
... Yet errors will not turn into defects if feedback and action take place at the error
stage" [Shingo, 1986, p. 82].
Typically in the Improve phase as part of the solution or the Control phase to ensure
sustainable solutions.
Four primary types of mistake proofing are proposed by Shigeo Shingo and others:
• ! >
2
• F > ( 5 5 4

&1
• " >*
• F > ( 3
3
G (
(
9.21 TOOL: QUALITY FUNCTIONAL DEPLOYMENT (QFD)
QFD is a systematic process used to integrate customer requirements into every
aspect of the design and delivery of processes, products and services. Specifically, it
is a carefully constructed matrix used to facilitate group discussions and decision
making.
While constructing the QFD matrix teams use several other basic quality tools such as
Affinity Diagrams, brainstorming and decision matrices. QFD may also be used with
quality techniques like Design of Experiments (DOE), Statistical Process Control
(SPC) and Failure Modes and Effects Analysis (FMEA).
QFD helps the LSS teams understand what the customer requirements and priorities
and then follow these requirements to product, process or control parameters.
Mostly, it is used in the Analyze phase as the team seeks a deeper understanding of
how customer requirements relate to the X’s. However, some LSS teams may use it in
the Define phase to determine the right scope for their projects.
When used correctly, the QFD can lead to
A better understanding of customer requirements
Increased customer satisfaction
Reduced time to market
Lower development costs
Structured integration of competitive benchmarking into process/product/service
design
Innovative solutions
Identification of those aspects of our processes and products which have the largest
overall impact on customer satisfaction
Improved teamwork in cross-functional teams

)3
Design
Item
s
M
etal
Cast
Rim
Plastic
Cast
Complete
Stamped
Steel
Rim
All
Holes
Already
In
Optional
Punched
Holes
Gold/Silver
Plating
Hex/Slotted
Plastic
Screws
Hex/Slotted
Plated
Steel
Screws
Plastic
Lens,
Separate
Tempered
Glass
Lens,
Separate
Customer Needs Ratings
Embossed Name 5 5 5 3 0 0 0 0 0 0 0
25 25 15 0 0 0 0 0 0 0
Place for Dealer Name 5 5 5 5 0 0 0 0 0 0 0
25 25 25 0 0 0 0 0 0 0
Must Hold All State Plates 5 5 5 5 5 5 0 0 0 0 0
25 25 25 25 25 0 0 0 0 0
Solid Feel 3 5 3 2 0 0 0 1 4 2 5
15 9 6 0 0 0 3 12 6 15
Gold/Silver Option 2 5 5 3 0 0 5 5 5 0 0
10 10 6 0 0 10 10 10 0 0
Easy to Install 4 3 5 3 5 3 0 5 3 3 2
12 20 12 20 12 0 20 12 12 8
Corrosion Resistance 4 3 5 2 0 0 3 5 3 4 5
12 20 8 0 0 12 20 12 16 20
Light Weight 1 1 4 5 0 0 0 5 2 5 1
1 4 5 0 0 0 5 2 5 1
Luxury Look 4 5 2 1 2 4 5 1 5 2 5
20 8 4 8 16 20 4 20 8 20
No Sharp Corners 5 4 5 2 4 2 0 5 3 5 2
20 25 10 20 10 0 25 15 25 10
Transparent Lens 4 0 3 0 0 0 0 0 0 3 5
0 12 0 0 0 0 0 0 12 20
Last 10 years 5 4 4 3 0 0 3 5 4 3 5
20 20 15 0 0 15 25 20 15 25
Low Cost 2 1 5 4 5 2 1 5 3 4 2
2 10 8 10 4 2 10 6 8 4
Keep Appearance 10 Years 4 4 3 2 0 0 2 5 3 3 5
16 12 8 0 0 8 20 12 12 20
Groupings
Totals 203 225 147 83 67 67 142 121 119 143
Priorities 4 NA
2
3
1

)
9.22 TOOL: BENCHMARKING
Benchmarking is a study of measures (of quality, time and cost) that have already
been achieved by someone else, somewhere else. The team identifies the best-in-
class processes (ones with the best measures) and seeks to understand how they
were achieved.
INTERNAL/COMPANY
Establishes a baseline for
external benchmarking
Identifies differences within the
company
Provides rapid and easy to
adapt improvements
Opportunities for
improvement are limited
the company’s internal
best practices
DIRECT COMPETITION
Prioritizes area of improvement
according to competition
Initial area of interest to most
companies
Often a limited pool of
participants
Opportunities for
improvement are limited
to “publicly known”
competitive practices
Potential anti-trust issues
INDUSTRY
Provides industry trend
information
Provides management with a
conventional basis for
quantitative and process-based
comparison
Opportunities for
improvement may be
limited by industry
paradigms
BEST-IN-CLASS
Examines multiple industries
Provides the best opportunity
for identifying radically
innovative practices and
processes
Provides a brand-new
perspective
Free exchange of information
more likely to occur
Often difficult to identify
best-in-class processes
Sometimes difficult to get
the companies with best-
in-class processes to
participate

)&
Benchmarking is most frequently used in the Analyze phase as the LSS team is
setting its performance objectives. It is also frequently used in the Improve phase while
the team is brainstorming solutions.
Benchmarking helps the LSS teams understand what is possible so they can set their
own performance objectives accordingly. It is also very helpful in injecting new ideas
into the process as the team observes best practices in other processes.
Xerox made dramatic improvements by benchmarking its processes against the best-
in-class. The benchmarked against American Express (for billing and collection),
Cummins Engines and Ford (for factory floor layout), Florida Power and Light (for
quality improvement), Honda (for supplier development), Toyota (for quality
management), Hewlett-Packard (for research and product development), Saturn (a
division of General Motors) and Fuji Xerox (for manufacturing operations) and DuPont
(for manufacturing safety). The improvements made were so dramatic that they
propelled Xerox out of its dilapidated state into a 21st century success story.
9.23 TOOL: FAILURE MODES AND EFFECTS ANALYSIS (FMEA)
FMEA is a method to review things that could go wrong even if a proposed project,
task or modification is completed as expected. Using the FMEA, the LSS team can
brainstorm all ways
•
•
Before the team launches an FMEA, they assemble everyone who has anything to do
with the project, especially those dealing with the effects of the project.
The FMEA is typically used in the Analyze (to brainstorm what could be going wrong
with the existing process) and Improve (to identify what could go wrong with the
proposed modifications before they are implemented) phases. In some cases, the
FMEA is also conducted before the Define phase to determine the focus of an
improvement effort and limit the scope to fit a GB project.
Often, the team’s ideas generate so much enthusaism that they lack the healthy
skepticism necessary to refine them. Everyone is working on the details of getting the
project going and little effort is spent on looking at ramifications beyond the specific

))
task. The FMEA is a way of giving the ideas a critical look before they are
implemented (saving unecessary cost and embarrassment).
9.24 TOOL: REGRESSION ANALYSIS
Regression Analysis allows the LSS team to understand the relationship between 2
variables (could be 2 X’s or an X and a Y or for that matter 2 Y’s). Data is collected on
the 2 variables together and plotted to form a scatter plot. A ‘line of best fit’ which
represents the most probable model (equation) between the 2 variables is then drawn
and the co-efficient of correlation calculated. Values of this co-efficient greater than
90% represent a very strong relationship.
Typically in the Analyze phase while determining which X’s affect Y the most..
With the understanding developed through Regression Analysis the team can make
assumptions and predications about one of the variables based on the other.
9.25 TOOL: DESIGN OF EXPERIMENTS (DOE)

)+
Put very simply, DOE is an efficient way of collecting data. When combined with
regression analysis the DOE provides very useful insights into the relationships
between process inputs, steps and outputs.
When conducting a designed experiment, the LSS team changes the inputs to observe
their impact on the output.
DOE is used in the Improve phase for determining the ideal solution.
Process output measures (Y’s) are affected by several inputs and process parameters
at once. It is prohibitively expensive to test every single combination of these factors.
DOE helps us optimize a process by finding the right settings for a set of key process
input variables.
9.26 TOOL: ANTI SOLUTION
A creativity technique in which teams are forced to brainstorm ways to make a
problem worse. The brainstormed “destructive” ideas are then reversed to reveal
creative solutions.
Typically used in the Improve phase to generate creative solutions.
Frequently, teams find their creativity limited by availability and recency bias. In order
to expand beyond these limitations, they must surprise their own brains by thinking in
unexpected directions.
Anti-solution is known get the creative juices flowing.
9.27 TOOL: 5S
A methodology used to organize and maintain a clean workplace. 5S follows the
adage: A place for everything and everything in its place. It involves a 5 step process
with increasing levels of organization and commitment.

)-
1. Seiri – Sort (Eliminate from the work area everything not required for the job)
2. Seiton – Store (Organize remaining items such that they are easy to access)
3. Seiso – Shine (Regular cleaning of work area and equipment; placing items back
into their designated spots)
4. Seiketsu – Standardize (Document and standardize processes)
5. Shitsuke – Sustain (Ensure that the first 4 steps are done repeatedly)
The best time to use 5S is at the beginning of an LSS project, before any major
improvement initiative begins. This will allow the team to see the process as it should
be seen and removes some of the obvious inefficiencies.
Plants that run well are never dirty or disorganized. Similarly dirty and disorganized
plants never run well. Performance is related to housekeeping and workplace
organization. It is a common sense first step towards improving results.
9.28 TOOL: STANDARD WORK
Standard work is a method of improving work efficiency by designing the best method
to complete a work task, documenting the method and then training other staff doing
the same task to use the same method.
Standard work may be used in the Measure phase (to determine a standard manner of
collecting data), in the Improve phase (as a part of the solution) or the Control phase
(to sustain a solution).
Standard work ensures maximum efficiency in the process with minimum variation
between people using the process.
9.29 TOOL: POKA YOKE
Poka Yoke (Mistake Proofing) refers to the implementation of fail-safe mechanisms to
prevent a process from producing defects. The philosophy behind error proofing is that

)9
it is not acceptable to make even a very small number of defects, and the only way to
achieve this goal is to prevent them from happening in the first place. In essence,
error-proofing becomes a method 100% inspection at the source rather than down the
line, after additional value has been added (wasted). Achieving extremely high levels
of process capability requires this type of focus on prevention rather than detection.
Poka Yoke may be used in the Improve (as a part of the solution) or Control (to ensure
that the solution is sustained) phases.
Error-proofing is an excellent activity to involve the workforce in continuous
improvement. Many poka-yoke ideas relieve stress from operators by eliminating the
need to concentrate on mundane activities and by providing more capable tools to get
the job done right consistently.
9.30 TOOL: VISUAL MANAGEMENT
Visual Management is a series of visual control techniques which are designed to be
very obvious and immediately understood by everyone.
Visual Management may be used in the Improve (as a part of the solution) or Control
(to ensure that the solution is sustained) phases.
Visual controls help improve the timeliness of communication, reduce potential for
errors and other waste as well as facilitate continuous improvement.
9.31 TOOL: CONTROL CHARTS
Control charts are data plots that track the performance of key measures (Y’s or X’s)
over time. They are sometimes referred to as the “voice of the process”.
To be measured on a control chart, the process measure must be in control (its
average and standard deviation are not shifting).

):
Control charts are typically used in the Control phase after a solution has been rolled
out.
The control chart helps you distinguish random (or common cause) variation from
special cause variation. The staff overseeing the process are able to take action when
they see special cause variation affecting the mean and standard deviation of the
process.
Target = 50
LSL = 30
USL = 60
UCL = 58.5
LCL = 34.5
Sample
Average
Sample
Average + 3S
Sample
Average - 3S
Sample
Average
Sample
Average + 3S
Sample
Average - 3S

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