Six Sigma Define Stage.ppt

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Six Sigma Champion Training
Module
ProcessOptimization. CostReduction
Innovation

TOPIC OBJECTIVE
To get an overview of
expectations as a Six Sigma
Project Champion
• By the end of this Champion Module, you would:
• have familiarised with the roles and responsibilities
as a Champion
• be able to select project and team
• have fully acquainted with the objective, main
activities, deliverables and tools of each DMAIC
phase
• be able to conduct tollgate session

Day One
Define
• Road map
• Team Chartering
• Selecting Projects
• What is a Customer
• QFD
• Process Mapping
Day Two
Measure
Road map
Measurement
Basic Statistics
Variations
Data Collection
Gage R&R
Analyze
• Road map
• Graphical Tools
• 6 Sigma Calculation
• Root Cause Analysis
• Hypothesis Testing
• DOE
• Regression
• Summary
Control
• Road map
• SPC
• Error Proofing
•Summary
Champions Training Agenda
Improve
Road map
Develop Solution
New Process Map
Implementation
Plan
Summary

Role of a Six Sigma Champion
• Select Most Appropriate Process Areas/KPI for improvement
using Six Sigma. These Performance indicators are typically tied
to Strategic Intent of the firm and derived from Goals
&Objectives at the top level. They are intended to bring
strategic or tactical or operational benefits to the business or to
the customer.
• Approve Scope, Targets & Schedule of the Six Sigma Project
• Select Most appropriate resources to execute the project as
Green/Black Belt
• Act on Escalations provided by MBB via coaching/tollgate reports
by Removing Bottlenecks & providing resources to the project
teams.
• Help the Project team in implementing & institutionalizing
solutions by providing necessary approvals & resources.

WHAT IS SIX SIGMA?
•Six Sigma is a Metric of Capability &
Performance.
•Higher the Sigma Level, the better is the
performance.
•At Six Sigma, the process or product meets
(internal or external) customer’s requirements
99.99966% of the time. Inability to meet
requirements i.e. specifications are termed
defects. Every chance or instance where
performance can be measured is termed as an
opportunity.

RELATIONSHIP OF SIGMA VALUE TO INABILITY
TO MEET SPECIFICATIONS

Measuring Process Capability
Process Sigma PPM
6 3.4
5 233
4 6,210
3 66,807
2 308,537
Process
Capability
Defects Per
Million
Opportunities
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Process Entitlement
Sweet Fruit
Process Redesign
Bulk Of Fruit
Process Characterization
And Improvement
Low-Hanging Fruit
Seven Basic Tools
Ground Fruit
Logic And Intuition
Increase In Process Sigma Requires Exponential Defect Reduction
Process Sigma Is A Statistical Unit Of Measure That Reflects
Process Capability…

Six Sigma Methodology
Sigma Improvement Process (DMAIC)
Process improvement project
• A product or process is in existence
at your company but is not
meeting customer specification or
is not performing adequately
Design for Six Sigma (DMADV)
Process design project
• A product or process is not in existence
at your company and needs to be
developed
• The existing product or process exists and
has been optimized (using either DMAIC
or not) and still doesn't meet the level of
customer specification
Process Management

THESE ARE YOUR EXPECTATIONS AT EVERY STAGE

UNDERSTANDING THE SIX SIGMA APPROACH
All Six Sigma Projects are derived from VOC
(Voice of Customer) or VOB (Voice of Business) by
translating them to CTQ (Critical to Quality i.e.
Quantifiable & measurable Performance
Indicators)
VOC
VOB

• Define Stage
• What is the business case for the project –
what if we don’t do it do we lose anything?
• Who is the customer – who is affected and
who is going to benefit from it?
• Current State of Map – how are we currently
doing this?
• What is the scope of project – to what
extend do you want to resolve/work on the
issue?
• What are the deliverables – how do you
know the project is effective?
• Due Date – when can we results: staggered,
immediate, long term?
Six Sigma Project DMAIC Cycle Questions –
MUST BE ANSWERED BY THE GB/BB

• Measure stage:
• What are the key metrics for this business process – what
have we measured so far to know whether we are within
specifications?
• Are metrics valid and reliable – is this good enough?
• Do we have adequate data on the process – do we need
more information?
• What is the baseline – how are we doing right now?
• How will I measure project progress – what is the
milestone to be achieved?
• How will I measure project success -what indicators are
you using the judge the effectiveness of the project?

• Analyse Stage:
• What is the current state – do we know the root
causes or x factors?
• Is the current state as good as the process can do
– is this all? Do we need to investigate further?
• Who will help make the changes – have the
change agents been identified?
• What are the resources requirements – what does
it take to make the change
• What could cause this change effort to fail –
Risks??
• What major obstacle do I face in completing this
project – are there solutions to the root causes?

Y = F (x) or Outputs are a function of Inputs is the core of Six Sigma Problem
Solving technique.
Y is the metric, which Six Sigma tries to Improve and Xs are the factors, & causes
that impact the Y.

If both Y and Xs can be quantified & measured, then the practical outcomes can be
mapped to a statistical relationship and analyzed. Such Analysis requires knowledge
of statistical & quantitative tools & techniques.

• Improve
• Future state map – what change are you
making to ensure that your project goal is
achieved?
• What is the work breakdown structure – what
are the activities involved in making the
change, who will do it, how much does it cost?
• What specific activities are necessary to meet
the project’s goal – any approvals, change to
SOP, vendors development, customer
management?

• Control Stage:
• During the project, will I control risk, quality, cost
schedule, scope, and changes to the plan – how do
you ensure sustainability of the improvement?
• What types of progress reports should I create –
how do you monitor the stability of the
improvements made?
• How will I assure that the business goals of the
project were achieved and are maintained –
transfer of ownership and integration into
organizational management system?
• How will I keep the gains made – what happens
when the project is over?

Define
65275 1
DEFINE
MEASURE
IMPROVE
ANALYZE
CONTROL

Road Map: Define
• The Business
Case (need for
change)
• Preliminary
Problem
Statement
• Project Scope
• Deliverable
• Roles
Define Measure Analyze Improve Control
Team
Chartering
Customer
Focus
Process
Mapping
 Definition Of Quality
 Types Of Customers
 Translate Customer
Needs Into Specific
Requirement
 Methods Of Collecting
Customer Requirements
 Voice Of The Customer
Analysis
 Process Definitions
 Connecting The
Customer To
Your Process
 Business Process
Mapping
 Mapping Guidelines
 Benefits And
Applications Of
Process Mapping

Considerations In Selecting Projects
Customer Satisfaction
(Internal and/or External)
Delivery
Quality Price
Cycle time
Defects Cost
CTQ – Critical to Quality
CTQ1 CTQ2
CTD – Critical to Delivery
PIVs
Need
Do
CTC – Critical to Cost
Processes
KPIVs
Project Area to
improve CTQ 2
CTQ3 Linkage from Project to
Customer’s CTS

Criteria How?
1.Benefits  Project must have significant benefits
to the company or customers.
2. Resources  Availability of trained Coach and
Team Leader (either Black Belt or
Green Belt).
3. Return on
Investment
 High impact on the RM (example: BB
project >RM 1.5 million and GB
project >RM500,000).
4. Voice of
Customers
 The project has positive impacts on
the customer.

Criteria How?
5. Speed of benefit
realisation
The realisation of the benefit must not
exceed more than one (1) year.
6. Measures The project must have identifiable
measures and commonly understood.
7. Communication Visible, consistent support and active
role in communication.

This exercise will give you the ability to identify areas of ‘pains’ in your
organization. This exercise is on ‘Problem in Golf Putting’.
Please identify
1. Potential areas of variation in golf putting exercise
2. List of potential projects to work on to improve the Golf Putting
performances
60
Workshop

Why Define?
Champions
 Provide Clear Direction Regarding Charter
 Start With The Customer And Capture Their Voice
 Recognize The Need To Map Core Processes
 Helps The Team Define The Shared Need
Makes Explicit The Need To Do Define Steps

Defining The Team Charter: Shared Need
• Why Is The Project Worth Doing?
• Why Is It Important To Do Now?
• What Are The Consequences Of Not Doing
This Project?
• What Activities Have Higher Or Equal Priority?
• How Does It Fit With Business Initiatives
And Targets?
The Project “Need” – Business Case

Defining The Team Charter: Problem
Statement
• What Are The Problems Being Addressed?
• Can Data Be Collected By The Team
Regarding
The Problem?
• When And Where Do The Problems Occur?
• Is The Problem Statement Too Narrowly Or
Too
Broadly Defined?
Problem Statement

Six Sigma Project Charter
Project Title :
Problem Statement
Problem Statement: Scope
Goal
Project Scope & Goal
Resource & Financial Impact
Champion :
Team Leader :
Coach :
Team Member :
Estimated Financial Impact : RMXXX
Defect Definition & Timeline
Defect Definition (Y):
Start Date :
Estimated Completion Date:
Describe how long the problem existed
Describe what is the problem in specific
Describe what is the impact of the
problem
Identify specific project beginning and end points
Follow the SMART (specific, measurable,
achievable, realistic & timely) criteria
Define the failure to meet one of the acceptance
criteria of the customers, used to calculate sigma
value in Measure phase
Justifications &
assumptions

Clarify Authority For The Team
• What Levels Of Authority Does Your Improvement
Team Have?
a) Decide And Implement On Its Own
b) Decide And Then Notify Champion
c) Share Decision-Making With Champion
d) Recommend A Preferred Alternative
e) Offer Input Reactions And Ideas
f) Collect And Analyze Data Only
• In What Different Areas (e.g., Change A Process,
Collect
Data, etc.)?
• How Clear Are The Allowed Authority Levels To Your
Improvement Team?

LEARNING JOURNAL
MODULE – Define
Key learning points for me
How can I apply this to my work or workplace?

Customer Focus
65275 1
DEFINE
MEASURE
IMPROVE
ANALYZE
CONTROL

External
Product/Service
Internal
Product/Service
Customer
What Is A Customer?
The Recipient Of A Product Or Service

Understanding Customer Requirements
Outputs Of Your
Processes Are
Designed To
Satisfy
Customer’s
Needs Profitably
But Customers
Needs Are
Stated In The
Language Of
the Customer
So Customer
Requirements Must
Be Translated Into
The Language Of
The Work Process
Your Outputs Customer Language Requirements

Unstructured Interviews
Process Participation
Observing Customers
Customer Data Collection Methods
Phone Call To
Customer
Visit With
Management Or
Customer Group Customer
Visit
Visit With Customers In Their
Environment
Contextual
Inquiry
Focus Groups
Gathering Evidence Of
Customer Behavior
(e.g., Passive Observation)
Low Intervention
With Customer
High Intervention
With Customer
Far From
Customer’s
Environment
Close To Customer’s
Environment

Example Of Voice Of The Customer Translation
“I Hate Filling Out Takes Too Long The Form Takes Less Than
This Form!” Five Minutes To Complete
“I Don’t Understand Ambiguous 99% Of All Form Users Say
Banking Jargon.” Instructions That They Understand The
Instructions On The Form
When Read For The
First Time
Voice Of
The Customer
After Clarifying...
The Key
Issue(s) Is...
Customer(s)
Requirements
Takes Too Long
Require data that I
don’t have with me
now

Process Mapping
65275 1
DEFINE
MEASURE
IMPROVE
ANALYZE
CONTROL

Business Process Elements
Output: The Tangible Products Of Services That
Result From
The Process
Customer: Whoever Receives The Outputs Of Your
Process – Internal Or External
Input: Materials, Resources And Data Required To
Execute Your Process
Supplier: Whoever Provides The Inputs To Your
Process
Boundary: The Limits Of A Particular Process, Usually
Identified By The Inputs And Outputs, That
Separate What Is Within The Process
From What Is Outside The Process – Where
It Starts And Stops

Steps To Business Process Mapping
Suppliers Customers
Start
Inputs Outputs Requirement
Process
Develop A Picture Of The Working Process As A Team
SIPOC

Process Mapping
Pick-Up &
Delivery
Customer
Service
Billing
Equipment
Management
Order /
Leasing
Major
Process
Sub
Processes
CSR
Enters Case
in CIS
Branch
Schedules
Repair
Servicer Fixes
Problem
CSR Verifies
Customer
Satisfaction
CSR Qualifies
Customers’N
eeds
Customer
Calls for
Repair
CSR
Completes
Case
Maintenance Staff
Customer Service
Representative
Branch Staff
Repair Person
Trailer Ready for
Shipment
Collection of Customer
Data
Repair Schedule
Labor and Materials to
Fix Problem
End User
GECMS
Repaired
Trailer
•One Point of Contact
•One Phone Call
•Speed of Response
•Fixed the First Time
•R & M Productivity (Internal or
External Failure)
•Staff Productivity
(See Above)
SUPPLIER INPUT PROCESS OUTPUT CUSTOMER REQUIREMENTS
Define Measure Analyze Improve Control
Define

Project Review Notes
The project summary gives an executive overview of the entire project. It includes seven
categories of information, as noted on the slide.
Review Questions:
A. How do you know there is a problem?
B. Who is the sponsor for this project?
C. Who’s your customer?
D. Will the customer see benefit from reduction in variation or defects?
E. What’s most important to the customer?
F. What specification level or value is important to the customer?
G. What is the CTQ?
H. Is this defect a CTQ?
I. How do you currently measure that Y?
J. Has a representative from finance helped you generate your cost savings
numbers?
K. Do you think the project is bounded sufficiently to be completed in the allotted
time?
Project Summary

Non-Statistical Tools
DEFINE Project Charter The Project Charter is a document that summarizes a Six Sigma project, and is
the basis for the official authorization. A document or sheet that clearly
scopes and identifies the purpose of a improvement project. Items specified
include background case, purpose, team members, scope, timeline.
DEFINE Pareto Chart
The Pareto chart was developed to illustrate the 80-20 Rule - that 80 percent of
the problems stem from 20 percent of the various causes.
DEFINE VOC - Voice of Customer
The Voice of the Customer (VOC) is a process used to capture the
requirements/feedback from the customer (internal or external) to provide
the customers with the best in class service/product quality.
DEFINE SIPOC
A SIPOC (Supplier, Input, Process, Output, Customer) diagram is a tool used
by a team to identify all relevant elements of a process improvement project
before work begins. It helps to define a complex project that may not be
well scoped.
DEFINE Process Mapping
A process map visually depicts the sequence of events to build a product or
produce an outcome. It may include additional information such as cycle
time, inventory, and equipment information.

Phase Consider these questions when evaluating: Strong Med. Weak
PROJECT INFORMATION
Project Name:
Champion/Team Leader:
STORYBOARD HIGHLIGHTS TO EVALUATE
Place an "x" mark in the appropriate box
Define Opportunities
Team Charter What is the problem being addressed? Where, when and to what extent does the
problem(s) occur? Is the scope manageable? What is the business reason for completing
this project? What are the project goals?
Detailed Action Plan Was it clear that the Project was well-organized? Did the action plan show realistic
resource estimates?
Process Maps (As Is) Was the process map an individual or team exercise? Were the right people involved?
Was the map validated with workers? How?
Quick-Win Opportunities What quick wins have you found? Were the quick wins truly fast, easy and inexpensive to
implement? Did they have the desired result? If not, what was done about it?
Critical Customer
Requirements
What data was used to ID customers? How were customer segments determined? Were
the CCR's specific, measurable and "must-have's?"
Key Stakeholders Was it clear who the key people/groups were that would be affected by this project? Were
their true concerns understood? Using what data? Were there clear action steps taken to
address those concerns?
Communications Plan How did the project team communicate with various stakeholders? What were the key
messages they tried to pass on? How did they know if their communications activities were
successful?
SIPOC Was a SIPOC diagram created to identify the primary customer and key requirements of
the process being improved?

Six Sigma Define Stage.ppt

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