This training ppt was given to the team to bring in the lean culture in the new lean plan we have made.

1. SIX SIGMA SESSION
FOR PRODUCTION AND PROJECT TEAM
( COVERING BROADLY YELLOW & GREEN BELT TOPICS )
BY
LT COL ( RETD) VIKRAM BAKSHI (BLACK BELT)

2. Topics
• Introduction
– Quality tools and Six Sigma Mistaking Proofing
• Process Chart / CTQ /CTP/ DEFECT determination/DPMO/Sigma Calculations
• Six Sigma Methodologies & Tools
– How to make a Flow Chart
– Check Sheet of data collection
– Cause and effect Diagram (Fish Bone)
– Pareto Chart
– Histogram
– Scatter Diagram
– Control Chart
• Value Stream Process
• Failure Mode and Effect Analysis
• How YOU can use Six Sigma: DMAIC Process

3. INTRODUCTION

4. What do you mean by
“Quality Control”
• Fitness for Use • Grade/Quality
• The component are said Characteristics
to be in good quality if • Appearance
they work well in the /performance life /
equipment for which they reliability/taste/
are meant to be odor/maintainability/time
• VOC
 Give so much to
customer as he values • Who is the customer>
VOC> Quality
characteristics> CTQs

5. What are the KPI of any
Organization
• But Customer is Not
• Functional Targets Interested
– Profitability • Quality> Product and
– Sales Turn over Support Quality
– Market Share • Cost
– Share Prices • Delivery Schedule

6. Traditional Management
• Time, cost, quality-- • Focus is on achieving
choose any two Functional goal of
• QA function to Sales/ Design/ Purchase/
independently check up HR/ Production/ Logistics/
on and "control" Accounts/ Administration
production
• Remove and rework • VALUE IS TO THE
defective product through ORGANIZATION
inspection P/F
• Cost of quality, optimal
inspection and rejection

7. SIX SIGMA
• FOCUS IS ON QCD • - It is a management
• VALUE IS TO CUSTOMER methodology that helps
• ENSURES LONG RUN organization to improve
profitability
GOOD WILL AND LOYALTY
OF CUSTOMER
• Disciplined Data Collection
and statistical analysis to
• ULTIMATE GOAL achieve
IS ROCE
– Reduce defects
RETURN ON CAPITAL – Eliminate Wasteful practices
INVESTMENTS – Delight internal and external
customer by fulfilling present
and future needs
• TOTAL SAVING FOR ANY
BLACK BELT PROJECT IS 20
LAKHS PER ANNUM

8. CTP: What are the actions
required to achieve the CTQ
• What does my customer need from • What is the measurement information
to be captured? What is the metric?
our process
• How is the information going to be
collected? Does a form need to
• How is our process performance
be developed?
from the customer perspective
• Can it come from an existing source?
• How does my customer measure my
• When will it be collected? How
process granular does the team need to be?
• How does my customer view my • Is continuous information needed?
process
• Will a week-end or month-end number
suffice (a point in time number versus
continuous)?
• What can we do better
• How would my customer like for our
process to perform

9. Difference between
QA and TQM/6 Sigma.
PHASE QA TQM/SIX
SIGMA TQM 6 SIGMA
SCOPE Prodn All Processes Quality circle is All
processes middle mgmt and
tech personnel
Area of On Line Before the
Action Beginning Change triggered Internal and External
by internal
System Appraisal Prevention
customer
Function Inspection Plan Do Audit Tech Tech processes
Analysis Check processes + Business issues like cost
/cycle times/ attrition
Status Manager
GM rates/meeting delivery
schedules
ISO9000 SIX SIGMA No Bottom line Profitability is main
What to do goal
How to do No time Line Well defined Time lines
QA is base TQM/TPS is the base Continual Break through
Improvement Improvement
Documentation first Improvement first
Implementation later Documentation later
Leads to Certification Lead to Profit
improvements

10. Lean Tools and Approaches
Six Sigma and Lean concepts and methods are
often combined into Lean Six Sigma.
• Both are driven by customer requirements.
• Both try to eliminate waste, reduce costs,
speed things up, and improve quality.
• Both focus on real dollar savings.
• Both rely on a systematic methodology.

11. DMAIC Toolkit for Lean Six Sigma

12. PROCESS TOOLS
Define Measure Analyze Improve Control
Define the purpose Understand the Identify and confirm Pilot solutions, Maintain the
And scope. Collect Current process Root Causes w/Data evaluate resulting data Gain, standardize
Background info. •Data Collection/ •Hypothesis tests •Pugh Matrix •Standardization
•Charter Sampling Plan •C&E Diagrams •FMEA •Training
•SIPOC •Run Time/Control •Run/Control Charts •New Paretos •Control Plans
•VOC Charts •Histograms •New Process Sigma •Run/Control Charts
6σ •Affinity Diagram •Frequency Plots •Stratified Frequency •Ideal Flowcharts •Process Audits
•CTQ Defined •Scatter Plots Plots •Pilot Studies •Communication
•Oper. Definitions •Test for Normality •Regression •Commitment Scale Plans
•Pareto •Transformations •DOE •Tree Diagrams •Ownership
•Communication •Process Sigma •Validated Root •Gantt Charts transition
Plan •Flowcharts Cause List •Planning Grids •Multiply
•Gantt Chart •Histograms •Affinity Diagram Solutions
•Value Stream Mapping •Autonomation •Operational Analysis • Management
•Takt Time •JIT •Six Big Losses Deployment System
•Eight Wastes •Visual Stds./Controls •OEE •Vendor Scorecards
Lean •Visual Factory •Kanban •SMED •Real-time Dashboards
•Error-Proofing •Standardization •TPM •Simple Graphical
•Workload Balancing •5S •One-Piece Flow Analysis
•Change Control •Future State •Kaizen •Go to Gemba
ALL TOPICS OF LEAN AND SIX SIGMA
CAN BE COVERED IN FUTURE SESSIONS FOR IMPLEMENTATIONS
12

13. • How Do we achieve CORRECTION Corrective Preventive
Prevention Action Action
• RCO > Reduced chance of Rectifying the First find root Extend learning
Occurrence mistake that
has occurred
cause Build POKA
( Fish bone) YOKE
• ( Pen Drive) Damage Build POKA Think
control YOKA to proactiely to
prevent build
occurrence of prevention in
• ICD> Increase chance of root cause processes
detection before things
go wrong
• (Car seat belt alarm)
• (Railway signal)
• (CCTV)
Six sigma is all about
building Prevention Processes
If processes does not allow mistake
No need to inspect mistake

14. The Six Sigma Evolutionary Timeline
1818: Gauss uses the normal curve 1924: Walter A. Shewhart introduces
to explore the mathematics of error the control chart and the distinction of
analysis for measurement, probability special vs. common cause variation as
analysis, and hypothesis testing. contributors to process problems.
1736: French 1896: Italian sociologist Vilfredo
mathematician Alfredo Pareto introduces the 80/20
Abraham de rule and the Pareto distribution in
Moivre publishes Cours d’Economie Politique.
an article
introducing the
normal curve.
1949: U. S. DOD issues Military
Procedure MIL-P-1629, Procedures
1960: Kaoru Ishikawa
for Performing a Failure Mode Effects
introduces his now famous
and Criticality Analysis.
cause-and-effect diagram.
1941: Alex Osborn, head of 1970s: Dr. Noriaki Kano
BBDO Advertising, fathers a introduces his two-dimensional
widely-adopted set of rules for quality model and the three
“brainstorming”. types of quality.
1986: Bill Smith, a senior
engineer and scientist introduces 1995: Jack Welch
the concept of Six Sigma at launches Six Sigma at GE.
Motorola
1994: Larry Bossidy launches
Six Sigma at Allied Signal.

15. Six Sigma Companies

16. Six Sigma and Financial
Services

17. How do Others Perform?
IRS Tax Advice
(phone in)
1,000,000
1% of Hospitalized Patients Injured by
Defects per Million
Negligence
100,000
Doctor Prescription Writing
10,000
Airline Baggage Handling
Average
1,000
Company Deaths caused by
anesthesia during surgery
100
Domestic Airline
Best-in-Class Fatality Rate
1
2 3 4 5 6 7
Sigma Scale of Measure
17

18. Understanding Six Sigma
Sigma DPMO
STATISTICALLY
STATISTICALLY 2 308,537
Six Sigma refers to aa Most US
Six Sigma refers to 3 66,807
process that produces Businesses
process that produces 4 6,210
only 3.4 defects per
only 3.4 defects per
million opportunities.
million opportunities. 5 233
6 3.4 Goal
Business An overall strategy that encompasses your
Strategy organization’s quality philosophy. It sets the vision
for achieving Six Sigma levels in key processes.
Tools And A set of statistical tools and a disciplined
Tactics methodology used by specially trained individuals
to improve processes by reducing variation and
defects. 18

19. BASICS OF SIX SIGMA
FOR BEGINNERS

20. QUALITY GOAL OF SIX SIGMA
As defined by Motorloa Less than 3.4 defects per million opportunities for error
ie .00034 % ie and accuracy of 99.99966%
• Define Your Product Unit
• VOC >CTQ to satisfy the
– A unit is something that is
customer satisfaction or quantified by customer
requirements – Measurable and observable
output of your business process
• Define your Product /Service
• Define your product Opportunities
defects of Error
– Does not meet Customer ( – Total Number of Chances per unit
Internal and external) to have a defect .
specification or requirements – Each opportunity must be
– Causes customer independent o other opportunities
dissatisfaction
– Does not fulfil functional or
physical requirements

21. Customer Needs vs. Customer CTQ’s
• Customer needs are the data collected
from customers that gives information • CTQ
about what they need or want from
your process. Customer needs are – Stated Needs:
often high level, vague, and non- Specified by customer
specific Policies/tender/LOI
“I need a quick response!” – Unstated Needs:
“I need accurate information!” Are not specified
(labor need legal
• CTQ’s are customer needs
requirements)
translated into critical process
requirements that are specific and
measurable.
• Expectations:
Delighters of the
• A fully developed CTQ has three
elements: Y metric, target, customer
specification/tolerance limits 21

22. Getting to the CTQ’s
Translating a customer need into a fully developed CTQ
Time from inquiry to
Example: resolution (Y metric)
Quick Response CTQ 5 minutes or less
(Target)
Not greater than 60
minutes
(specification / tolerance limit)
22

23. Define – Customer Requirements
What are the CTQs? What motivates the
customer?
Voice of the Customer Key Customer Issue Critical to Quality
SECONDARY RESEARCH
Listening Posts Industry Intel
Market
Data Industry
Benchmarking
Customer
Correspondence
Customer
Service
PRIMARY RESEARCH
Surveys
Surveys
OTM
Obser-
Focus Groups vations

24. Examples
• Area: Call Center • Area: Book Publisher
• Customer Complaint: I wait • Customer Complaint: I cant stand
consistently too long to speak to to an any typing error in books I
executive purchase
• CTQ Name: Executive
Responsiveness • : Typograpghic Quality
• CTQ Measure: Time on Hold seconds) • CTQ name CTQ measure:
• CTQ Specification: Less than 60 Number of typography mistakes
seconds from call connection to • CTQ Specification: Zero
automated response system typographic mistakes
• Defect : Call with holds time equal
and greater than 60 seconds
• Unit : Call • Defect: Any typogrpahic mistake
• Opportunity : 1 per call • Unit : Word
• Sigma ? • Opportunity: No of letter per word

25. DPU AND DPMO
• Take the data collected based on the data • Calculate the Defects Per Million
collection plan, using an appropriate sample Opportunities using the following
size. formula:
• Calculate the number of defects in the
sample based on the Operational
Definitions. • DPMO = Defects x 1 Million
divided by No of Units
• Define what an opportunity is. Be cautious processed at that review point x
in defining too many opportunities; this will Opportunities for error in that unit
artificially inflate the Sigma Level
• Suppose that a project is focused on a DPMO= 60 x1000000 divided by 250 x
billing process. The team wants to 1
have correct bills sent to the customer. They
have defined one opportunity for this
process - either the bill is correct or not. All =240 000
of the bills produced are the same in terms
of complexity. The team took a sample of
250 bills and found 60 defects
• Using a conversion table, the team
found the Sigma Level to be about 2.2.
They used this information to baseline
the current process performance.

26. Use the table to convert DPMO into the Sigma
Level

27. Another example
• A purchase order has 20 • DPMO= DPU X 1000000
Opportunities for error. DIVIDED BY
The person who enters OPPORTUNITIES FOR
the order makes one ERROR IN THAT UNIT
defect on an average.
What is Sigma level for • = 1X 1000000
this process
DIVIDED BY 20
• DPU= No of defects
divided by No of units = = 50,000
1 divided by1=1
SIGMA LEVEL= 3.1

28. CALCULATION SIGMA LEVEL FOR THE ENTIRE
ORGANIZATION
Sub No of No of Opportuni DPU DPMO SIGMA
process units defects ty for LEVEL
error
Sales Order 20 5 w/o PO
Fin GRN Bills 10
25 MISTAKE
S
HR 23 8 DELAYED
Productio 100 25
n MISTAKE
S
TOTAL OPP DPU

29. SPC
• Capability Indices • Cp = USL – LSL divided by 6s
• Process capability is the ability of
the process to meet the • Cp is the potential capability
requirements set for that process. indicating how well a process
could be if it were centered on
• One way to determine process target. This is not necessarily its
capability is to calculate actual performance because it
• capability indices. does not consider the location of
the process, only the spread.
• Capability indices are used for • It doesn't take into account the
continuous data and are closeness of the estimated
• unit less statistics or metrics. process mean to the specification
limits.
• There are many capability indices
but the two most commonly used
are Cp and Cpk (or Pp and Ppk).

30. DPU AND DPMO
• Take the data collected based on the • Calculate the Defects Per Million
data collection plan, using an Opportunities using the following
appropriate sample size. formula:
• Calculate the number of defects in the
sample based on the Operational • DPMO = Defects x 1 Million
Definitions. divided by Units x
Opportunities
• Define what an opportunity is. Be
cautious in defining too many DPMO= 60 x1000000 divided by 250 x
opportunities; this will artificially inflate 1
the Sigma Level
=240 000
• Suppose that a project is focused on a
billing process. The team wants to • Using a conversion table, the team
have correct bills sent to the customer. found the Sigma Level to be about 2.2.
They have defined one opportunity for They used this information to baseline
this process - either the bill is correct the current process performance.
or not. All of the bills produced are the
same in terms of complexity. The team
took a sample of 250 bills and found
60 defects

31. PROCESS CAPABILITY
• A control chart statistically determine upper and • How do we calculate
lower limits either side of a process average . IN
CONTROL X bar Mean and
• Process width = UCL - LCL
UCL= X bar + 3 sigma sigma also called as standard
LCL= Xbar – 3 Sigma deviation :WILL COVER LATER
PW= 6 SIGMA IN PPT IN HISTOGRAM
PORTION
Specification Width is given by customer UCL AND LCL
must remain within USL and LSL
= USL - LSL
Cp= SW divided by PW
= SW divided by 6 sigma
PROCESS IS SAID TO BE
CAPABLE ONLY IF Cp > 1
Cpk and Control Charts Not being
covered WILL COVER IN DETAIL IN NEXT
SESSION INCLUDING Cpk

32. Is 99% Good ?

33. 99% Accuracy
Practical Meaning of “99% Good”
• 20,000 lost articles of mail per hour
• Unsafe drinking water almost 15 minutes each day
• 5,000 incorrect surgical operations per week
• 2 short or long landings at most major airports each
day
• 200,000 wrong drug prescriptions each year
• No electricity for almost 7 hours each month
99% Is NOT Good Enough Anymore

34. 6  – The Measurement
99.0% = 3.85 
99.9996% = 6 
Is there really a big difference
between 99.0% & 99.9996%?

35. What’s in a name?
• Sigma is the Greek letter representing the standard
deviation of a population of data.
• Sigma is a measure
of variation
(the data spread)
σ
µ

36. Facts
• All work is a process
• All processes have variation and waste
• Variation causes defects waste causes loss
• Processes can be improved by understanding
the nature of the variation and waste

37. What does variation mean?
20
• Variation means that a 15
process does not produce 10
the same result (the “Y”) 5
every time. 0
-5
• Some variation will exist in
-10
all processes.
• Variation directly affects customer experiences.
Customers do not feel averages!

38. Measuring Process Performance
The pizza delivery example. . .
• Customers want their pizza
delivered fast!
• Guarantee = “30 minutes or less”
• What if we measured performance and found an
average delivery time of 23.5 minutes?
– On-time performance is great, right?
– Our customers must be happy with us, right?

39. How often are we delivering on time?
Answer: Look at
the variation!
30 min. or less
s
0 10 20 x 30 40 50
• Managing by the average doesn’t tell the whole story.
The average and the variation together show what’s
happening.

40. Reduce Variation to Improve
Performance
How many standard or less
30 min.
deviations can you
“fit” within
s
customer
expectations?
0 10 20 x 30 40 50
• Sigma level measures how often we meet (or fail to
meet) the requirement(s) of our customer(s).

41. Another Example
Roller Bearing Manufacturing
Diameter is a CTQ
(Critical To Quality Parameter)
Nominal diameter = 2.5mm
Minimum Spec = 2.25mm
Maximum Spec = 2.75mm
41

42. Example (Cont.)
Lower Upper
Specification Specification
Limit Limit
Nominal
Diameter Customer is
expecting 2.5 mm
2.5 mm
But will allow
No Less Than No More Than some variation
within the Spec
2.25 mm 2.75 mm range.
42

43. Example (Cont.)
Manufactured Roller
Bearing Diameter
Actual Micrometer
Measurements
43

44. Example (Cont.)
Manufactured
Roller Bearing
Diameter
Variation
ending up as a
defect
44

45. Example (Cont.)
Let’s Look at Some
Basic Statistics
Mean diameter = 2.50 mm
Standard Deviation = 0.125 mm
On Average
it’s OK
It’s a Variation
issue 45

46. Example (Cont.)
Reducing Variation
is Clearly the Key to
Improving Process
Capability
2
46

47. Example (Cont.)
Reducing Variation
is Clearly the Key to
Improving Process
Capability
3
47

48. Example (Cont.)
Reducing Variation
is Clearly the Key to
Improving Process
Capability
4
48

49. Example (Cont.)
Reducing Variation
is Clearly the Key to
Improving Process
Capability
5
49

50. Example (Cont.)
Reducing Variation
is Clearly the Key to
Improving Process
Capability
6
50

51. I think now we know what we mean by SIX SIGMA
LETS AGAIN REWIND
Process Defect • The Objective of 6 Sigma is to achieve
capability
DPMO level of 3.4 defects or errors out of
Count in
(Sigma every million defect opportunities.
%
Level)
• This translates into 99.9997%
690000 perfection
1 69
308000 30.8
2 (2 Times)
• While everybody talks about customer
satisfaction and world class quality,
here we are transferring Quality into
66800 6.68
3 (5 Times)
Quantifiable language
0.62
Six Sigma Approach focuses on:
6210
4 (10 Times)
Customer needs
Data-driven improvements
230 0.023 The inputs of the process
5 (30 Times) And this results in:
0.00034 Reducing or eliminating
3.4
6 (80
defects
Reducing process variation
Times)
Increasing process capability

52. Managing Up the Sigma Scale
Sigma % Good % Bad DPMO
1 30.9% 69.1% 691,462
2 69.1% 30.9% 308,538
3 93.3% 6.7% 66,807
4 99.38% 0.62% 6,210
5 99.977% 0.023% 233
6 99.9997% 0.00034% 3.4

53. Table Comparison of 99.9% Vs 99.9997%
Activity/Operation Error Nos with 99.9 % Quality Error Nos with
99.9997 %Quality
Delivery of 300,000 300 mis deliveries 1 Mis delivery
Letters
60 500 Crashes <2 CRASHES
Clearance of 200,000 200 wrong clearance < 1 wrong
cheques in a week clearance
Handling of 60,000 60 bags lost in a day < 2 BAGS LOST IN
nos bagagages by A WEEK
airline in a day

54. Six Sigma is. . .
• A performance goal, representing 3.4
defects for every million opportunities • Who is the Customer
to make one.
• A series of tools and methods used to
improve or design products,
• What are the Quality
processes, and/or services. Characteristics
• A statistical measure indicating the
required by him
number of standard deviations within
customer expectations.
• A disciplined, fact-based approach to
• CTQ
managing a business and its
processes.
• Actions required to
• A means to promote greater
awareness of customer needs, achieve the CTQs
performance measurement, and
business improvement.

55. Examples of the Sigma Scale
In a world at 3 sigma. . . In a world at 6 sigma. . .
• There are 964 U.S. flight • 1 U.S. flight is cancelled every
cancellations per day. 3 weeks.
• The police make 7 false • There are fewer than 4 false
arrests every 4 minutes. arrests per month.
• In MA, 5,390 newborns are • 1 newborn is dropped every 4
dropped each year. years in MA.
• In one hour, 47,283 • It would take more than
international long distance 2 years to see the same
calls are accidentally number of dropped
disconnected. international calls.

56. PART THREE
ANYBODY FOR A SMOKE BREAK OR CONTINUE!
• Six Sigma Methodologies & Tools
– How to make a Flow Chart
– Check Sheet of data collection
– Cause and effect Diagram (Fish Bone)
– Pareto Chart
– Histogram
– Scatter Diagram
– Control Chart

57. Process Maps
• Another important set of deliverables of
the Define phase are process
• maps.
• The maps should be based on the actual
state of the process, or "asis“ maps.
• They should not show the desired state at
this point in the project.

58. High Level Process Maps
Develop high level process maps to include next-level subprocess overviews,
identify process linkages and gaps to ensure that the teams are aligned.
Deliverables:
a. Sub Team Processes Mapped to Critical Steps
b. Team Leaders Met and Reviewed & Aligned Maps

59. SIPOC.
• Establish a name for the process.
• The first stage would be to create
a SIPOC. SIPOC stands for • Define the starting point and the ending point
Suppliers, Inputs, Process, of the process to be improved. These should
Outputs and Customers. already be listed in the scope section of the
team Charter.
• The SIPOC is a very top-level • List the key outputs of the process. Usually,
view of the process to be this list includes up to three or four main
improved. outputs even though the process may produce
more.
• By starting the mapping process • Define who receives those outputs, i.e. the
at this level, it allows the team to customers. These customers may be internal
(part of the business) or external.
quickly develop a common
understanding of the process to • State the top-level process steps of the
improve and the key customers process. Keep the list to four to eight main
and suppliers steps. These steps do not contain any
decision points or feedback loops.
• List the inputs to process. Stick with one to
four main inputs.
• Define who supplies the inputs to the process.

60. SIRPORC
REQUIREMENT CUSTOMER
SOURCE REQUIREMENT
SUPPLIER INPUTS OF
PROCESS OUTPUT CUTOMER OF THE
SUPPLIER
PROCESS
AREA OF PROCESS
WHERE WE EXPECT TO FOCUS
OUR INITIAL MEASUREMENTS
SUBPROCESS

61. Process Understanding
SIPOC – Suppliers, Inputs, Process, Outputs, Customers
You obtain inputs from suppliers, add value through your process, and provide
an output that meets or exceeds your customer's requirements.

62. SHOP FLOOR EXAMPLE

63. FLOW CHART
• What people are presently doing/
START/ internal and external interconnections
FINISH
• Relation ship Map how various
function and individual interface with
each other
ACTIVITY/OPERATION
• Maps and Flow Chart to make work
visible
DECISION STAGE
• Identify alternative way
• Improvement opportunities
LINK TO NEXT ACTIVITY
• Analysis tool
A DOCUMENT OR DIAGRAM

64. TOP DOWN MAP
• The steps for creating a top-down chart
• However, the SIPOC is probably not are:
detailed enough to find opportunities
for making the process better.  Agree on the start point and
end point for the process map.
• More detailed mapping is required The
next stage of mapping may be a  These are already listed in the
top-down chart. SIPOC.
• The top-down chart takes the • Identify four to eight major steps that
information from the SIPOC and adds describe the process from beginning to
a second level of information. end.
• For each step listed in the SIPOC, the  List those steps horizontally across
team defines the associated sub- a flipchart page.
steps.
 These are also taken from the
• There are still no feedback loops or SIPOC.
decision points
• Break each major step into three to
seven sub-steps. List the substeps
under the corresponding major step.
•

65. TOP DOWN SUB PROCESS
AFTER WE MAKE SIPOC CHART
Review the map and make corrections as necessary.
Rearrange steps, combine sub-steps, or
 Revise the descriptions of the major steps or sub-steps so
Accurately describe the process.
 Agree on a presentation format for the process map.
FROM SIPOC PHASE MAKE YOUR FLOW CHART

66. ANOHER EXAMPLE

67. NEXT MAKE THE
FUNCTIONAL DEPLOYMENT MAP
• The third stage of mapping is
to create a more detailed "as-
is" picture
• The functional deployment
map displays the steps of a
process in sequential order.
• The functional deployment
process map also illustrates
what function performs the
process step.

68. The steps for creating a functional deployment map are:
• Review the top-down chart with the team.
• List each of the process steps in sequential order
in the first column.
• Use the horizontal axis across the top to show the
location/ responsibility or department for each
step performed.
• Depict individuals (by job title/position), specific
locations, or work functions.
• Indicate the steps, activities, and decisions that
make up the process under the associated
functional column.
• Identify the sequential order in which the steps are
actually performed.
• Use arrows to indicate the direction of the process
flow
• Review the final map and correct as necessary.

69. POSSIBLE PROCESS MAP
OF SCM FACILITY

70. Annotating Process Maps
• After the map is complete, additional information can be added
depending on the project goals.
• For instance, if the goal is to reduce cycle time,the time for each
step may be added.
• If the goal is to reduce defects, yield information may be added. T
• This may help the team identify the areas on which to focus.
• However, this type of information may not be readily available and,
often, after the data are collected in the Measure phase, the maps
are updated

71. Process Understanding
Process Map – should allow people unfamiliar with the process to understand
the interaction of causes during the work-flow. Should outline Value Added
(VA) steps and non-value add (NVA) steps.
F u ll F o r m
C ont ro l O pen
S ta rt S iz e S o r t s P u ll & S o r t
R e c e ip t / D ocs
E x t ra c t
C k / Vou ch
V e r if y
P e r f e c t io n
R e qua l G ro up
No
Yes Prep cks,
R e m it
R u lr s route Prep cks S h ip t o I P
Pass 1 Pass 2
vouch
V o u c h e rs
Key from
B a la n c e
D ata Cap im a g e
No
V ou ch
OK
I nventory Yes
Pre p
F o ld e r s / F u ll F o r m S h ip t o
B ox Q C R e v ie w Cust

72. Process Understanding
Create daily peak Action
staff need plan Plan
No
Yes Can they Call employee
Add 30% to To Floor
the required make it? (3x)
no. No Yes No
Operations Need OJT Make
Compare to OJT
Re-Tng it?
Check off original Billet rpt
desired
Manually Review
returnee Yes
Update HR Staff
staff & "need No Yes
Billet Request Billet Need re
to retrain" To Floor
-train
list
Add 40% to Call (3x)
Stop!
staff needed
Create Update
Staff No IPS
No
Billet Rev
Do they original Do they No
Send Letters Yes Yes Have we No Yes Have we No Yes Interview / Meet Fleet
Do they want to billet & want to Call Wait Rank as
to desired hired hired New hiring
respond? work this call work this List pre-hire "1 2 3"
staff enough? enough? criteria
peak? uncheck peak?
ed
What if the
HR sends Hire in 1- Yes
returnee is Yes Yes
req for No No 2 order
Start already
staffing (3's are
HR / working here show up No
nos. not Place into Call
Recruit on another Do they Do they orienta
No No placed) dept 3X
program? want to want to tion
Stop! Stop!
Currently stay on the stay on the
send the ltr list list
anyways Wait List Yes
Yes Yes
New &
Other Take off Set 14
Take off Set 14
People IPS month
IPS month
call in system flag (on
system flag (on
IPS?)
IPS?)
schedule Yes No Gen Event Roster
for Reach
rpt in IPS
training
Show No Call Notify
up? 1X HR
Yes
Training Gen rpt for
Ops Kronos
Recruit
Train
No Yes Update
Pass?
IPS

73. QUICK WINS
• Criteria for Good Quick Wins
• After the mapping activity is done, the team should then use the
maps to assess if there are some obvious opportunities for Quick
Wins.
• Quick Wins should be changes that are easy, fast, and cheap to
implement, andthat fall within the team's responsibility.
• In addition, the team may want
• to ensure that the changes are easy to reverse since these ideas
may not be validated with data.

74. SECOND TOOL: CHECK SHEET OF DATA
COLLECTION
• How many times each value
occurred Defect 25Aug 26Aug Total
item 2012 2012
• Shows frequency of a particular Mold IIII III
cracked
defect and how often it occurs in a
specific location Fiberes II III
• Enables Operator to spot the
Cracks I IIII
problem
Pin IIII IIII I
• Easily set the priorities Holes
•
• Part with highest number of
defects carries highest priority for Total II I
correction

75. THIRD TOOL : PROCESS APPROACH AND
PROCESS MODEL
• CONTROL  Must Know what people
BOUNDARY are presently doing,
where are the
contributions in relation to
Transformations
CONTROL
customer internal and
Using resources and external
INPUT
Mgmt Activities OUTPUT
Y
 Relationship Map View
X1
X2  Make work Visible
X3…Xn
 Uncover non valued
added
To Identify potential breakdowns,
 Improved opportunities
rework loops and source of variation  Also used as Anlytcla tool
in process

76. FOURTH TOOL :CAUSE AND EFFECT
DIAGRAM (FISH BONE)
Fish Bone Diagram - A tool used to solve quality problems by
brainstorming causes and logically organizing them by branches. Also
called the Cause & Effect diagram and Ishikawa diagram
Provides tool for exploring cause / effect and 5 whys

77. Cause and Effect Matrix
• The Cause and Effect Matrix gives weights to
each y indicating the importance of that y.
• Man Material Money Machine Method
Environment
• Then, each x is rated in terms of its correlation to
each y. Calculations are made based on the
importance and Correlation, and higher scoring
x's are the best candidates for data
collection.
• Rate the degree to which the x affects or is
correlated to each y.
• Use the following scale:
– 0 - no effect or correlation
– 1 - small effect or weak correlation
– 3 - medium effect or medium correlation
– 9 - strong effect or strong correlation.
• This scale ensures that the x data that the team
thinks has the strongest effect on the y will stand
out.
• Multiply each rating by the weight and sum across
the row, putting the result in last column.
• The x's with the highest totals are the ones
that the team should try to collect.

78. ANOTHER
EXAMPLE OF

79. FIFTH TOOL :THE PARETO CHART
• Another powerful teaming tool is the
Pareto chart. The Pareto chart is • The Pareto chart is a bar chart.
based on the Pareto principle. The height of the bars indicates
the count, or frequency, of
• Pareto was an economist in the early occurrence. The bars represent
1900's who discovered that 80% of all one grouping of the data,
the wealth was held by 20% of all the
people. such as defect type.
• This became known as the 80/20 rule • The idea motivating this chart is
and it was found to be applicable to that 80% of the count will be due
more than the economy. to 20% of the categories.
• Eighty percent of the warehouse • The bars are arranged in
space is taken up by 20% of the part
numbers. Eighty percent of the defects descending order, therefore the
are caused by 20% of the defect types dominant group can be
determined and it will be the first
bar on the left. This chart can be
used in a variety of places in a Six

80. PARETO CHART
• We will draw a Pareto Chart
• Arrange all data in descending order
• Arrange data in percent with No of readings
• Pareto Mean 80:20
• Convert Data into Cumulative
• After data has been collected we draw
pareto to focus on the Vital few.
Cumlativ
Descending % e
• The remaining factors are called Trival Many
A 17 34 34
• Reasons for Customer Dissatisfaction
–
–
Wrong Items: 17
Delivered Late: 4
B 12 24 58
– Transit Damage: 8
– Late Vehicle : 12 C 8 16 74
– Late Installation: 3
– Absentee of Engineer: 1 D 4 8 82
– Others: 3………………….IN LAST
– Failure of items: 2
E 3 6 88
– 17 divided by 50 x 100 = 34 so on F 2 4 92
G 1 2 94
H 3

81. IDENTFYING VITAL FEW IN
PARETO CHART 80:20
100
90
80
70
60
50
40
30
20
10
0
A to D are
CTP
Vital

82. ANOTHER EXAMPLE

83. Step 2: Measure – Pareto Tool
ANOTHER EXAMPLE
Customer Service Requests Between Week 31 and Week 38 that Were Delivered Late
99.2%
250 97.2% 100
n = 251 94.4%
90.8%
86.1% 90
200 76.1% 80
70
162 64.5%
150 60
# of Requests
% of Total
50
100 40
30
50 20
29
25
10
12 9 7 5 2
0 0
DOCS LLR RS NFL O&E START QUESTION RS, DOCS
Request Type
• MS Excel and QC Tools software used to construct graphs
• Tool used to rank data by groups from the group that
contains the most data points to the group that contains
the fewest data points.
• Look for a “large bar” or “young mountain”

84. SIXTH TOOL No of Defective Defect Defect in Pune
HISTOGRAM Boilers In Savli
1
• Displays frequency of
96 90
distribution of 3
continuous /variable 91 81
data 6
82 73
CONSIDER 7
A DATA OF DEFECTS 77 66
OCCURRED IN
9
PRODUCTION
IN SAVLI AND PUNE PLANTS
68 61
•Total 50 Nos PRODUCT 7
in each location
62 58
6
HOW WILL YOU DETERMINE 55 56
WHICH PLANT IS MORE CONSISTENT
WITH LESS RANGE IN DEFECTS 5
47 53
4
38 51
2
23 50

85. FIRST CALCULATE INTERVAL FROM DATA
-DETERMINE TOTAL NUMBER OF PRODUCTS AND THEN SQUARE ROOT IE 50= 7 ROUNDING OFF
-96 WHICH IS HIGHEST READING IS DIVIDED BY 7= 14
-SO NOW WE HAVE INTERVEAL OF 14 EACH.
-DETERMINE READINS AS PER INETRVAL OF BOTH PUNE AND SAVLI PLANTS
• 14 to 28> 2 of 23
• 14 to 28> 0
• 28 to 42> 5 of 38
• 28 to 42> 0
• 42 to 56> 5 of 47 and 6 of 55 =
11 • 42 to 56> 2 of 50, 4 of 51, 5
of 53, 6 of 56
• 56 to 72> 7 of 62 and 9 of 68
=16 • = 17
• 72 to 84> 7 of 77 and 6 of
82=13 • 56 to 72> 7 of 58, 9 of 61, 7 of
• 84 to 98> 3 of 91 and 1 of 96 66 =23
=4
• 72 to 84> 6 of 73, 3 of 81 =9
• 84 to 98> 1 of 90

86. PLOT NUMBER OF READINGS AS PER Y SCALE IN EACH INTERVAL OF 14
ON X SCALE
WIDER THE BASE MORE THE VARIATION
AIM IS TO BRING BASE CLOSER TO MEAN
25 savli MEAN
Pune
20 3-D Column 3
3-D Column 4
15
3-D Column 5
3-D Column 6
10
3-D Column 7
3-D Column 8
5
3-D Column 9
0 3-D Column 10
28 56 84 3-D Column 11
NARROW BASE WIDER BASE

87. MEASURE OF CENTRAL TENDENCEY
• AVERAGE MEAN: 64.18 & 61
• MEDIAN: MIDPOINT OF DISTRIBUTION OF
DATA : 68 & 61 • CONCLUSION
• MODE: RANGE WITH MAX OBSERVATION :
68 &61
• RANGE: X max – X min = spread of • A strong Central tendency
distribution . 73 & 40. Range is measure of ( Mean , Median, Mode are
Variation
close to each other ) indicates
less variation in process
• Another measure of Variation is
Standard Deviation also known as
Sigma or s + Square root of ( X • If bars are more spread it
–
Xmean) ( X – X mean) / N means range is higher or
• Where X is X1 X2 X3….. higher variation
• N is population size
• THIS DATA IS ALSO USED TO
CALCLULATE Cp
•

88. Step 2: Measure – Histogram Tool
ANOTHER EXAMPLE OF HISTOGRAM
Customer Service Document Requests Between Week 31 and Week 38 that Were Delivered
Late
120 _
x n = 162 (2 outilers of 79 and 64 hours not shown)
USL=0.5 hours
mean = 7.139
std dev = 8.538
100 96
80
# o R q e ts
f eus
60
40
20
14 14
10
8 7
4
1 1 1 1 1 2
0
-1.55 0.55 2.65 4.75 6.85 8.95 11.05 13.15 15.25 17.35 19.45 21.55 23.65 25.75 27.85 29.95
# of hours to deliver request
 MS Excel and QC Tools software used to construct graph
 Fits data into a frequency distribution
 Can show upper and lower specification limits and denote data that
falls outside those limits (the area on which the story should focus)
 Used for data breakdowns by hours, minutes, dollars, etc.

89. OK BEFORE WE GO TO NEXT PART
LETS US AGAIN REWIND WHAT WE HAVE LEARNED

90. Part four
• Value Stream Process
• Failure Mode and Effect Analysis
• AIM IS TO ADD VALUE TO THE
PROCESS IF IT IS LENGTHY AND
TIRESOME

91. REMEMBER THE PROCESS MAP
WHAT WE HAD MADE IN SIPOC AND FLOW CHART
NOW OUR NEXT AIM IS TO IMPROVE THE PROCESS CHART BY MAKING
OUR SYSTEM A LEAN SIX SIGMA EFFICIENT AND QUICK
BUT BY REMOVING
ALL NON VALUE ADDED STEPS AND PROCESS
IN A BUREAUCRATIC DECISION MAKING
THAT DO NOT ADD VALUE BUT ONLY DELAY THE GOAL ACHIEVING

92. FUNCTIONS FILL IN PROCESS STEPS AND DEPART MENT PERSONS
IN SEQUENCE OF ACTIVITIES
SUBMITTER Fills

93. NOW IDENTIFY IN YOUR SYSTEM PROCESS
WHAT ARE THE CUSTOMER VALUE-ADDED ACTIVITIES
• Customer-value added has all the following
characteristics: • A non-value added activity is one
that does not fit into the other
two categories.
• The customer recognizes the value.
• Examples of non-value added
• It changes the product or service toward something activities are: proofreading,
the customer inspection and checking, logging
• expects. information, checking
calculations, reviewing and
• It is done right the first time. approving, moving and set-up,
monitoring work, and rework.
• An operational-value added activity has all the
following characteristics: • The team would focus on the
non-value added activities to see
if they could be eliminated or
• It is required to sustain the workplace ability to minimized.
perform customer value-added activities.
• An important clarification is that
• It is required by contract or other laws and regulations. a non-value added activity
doesn't automatically make it an
• It is required for health, safety, environmental, or unnecessary activity
personnel development reasons.
• It is done right the first time.

94. Example Value-Added Analysis

95. IDENTFYING VALUE ADDITION
( TIME SPENT IN HOURS)
ACTIVITY REQUIRED BY NOT REQUIRED BY NEITHER BENIFTS
CUSTOMER CUSTOMER CUSTOMER OR
RVA BVA BUSINESS
NVA
Understanding customer requirement 15
Checking by customer
5
Error corrected
7
Prepare Execution plan
10
Keep plan aside to attend another activity
20
Refer plan for approval by senior
5
Implement Plan
20
Arrange Invoice
8
Await Delivery clearance
15
Ship to customer
5
Customer Sign
5

96. IMPROVING THE PROCESS MAP
RVA: Real value adding activity to be optimized
BVA: Business value adding activity to be minimized
NVA:Non value Adding Activity to be eliminated
• Map will be Current Base line Map
Step 1
Draw As is Map
• Reflect NVA/ removed/
appraisal/prevention for like failure
modes
Step 2
Draw Should be Map
• Compare Maps and Identify actions
to move to Should be Level
Compare Map
• Take action to improve
Improve Process processes to Should be
Verify, Implement Level
Validate
Make control Plan

97. ANOTHER
PROCESS IMPROVEMENT TOOL
PFMEA
• Capture defect in your shop that • Information to have
customer does not catch in his
operations before FMEA
• Surfacing the problem early in • Customer requirements specifications
production cycle will enable us to solve • Engineering drawings
them wih minimum expenses and time • Warranty information and field failure
• Previous FMEA
• Why perform a FMEA> To prevent • Process Flow Diagram
design /process related problems • Process Capability data
during product launch /subsequent
operations • Prototype TEST data
• Defect failure information
• How> By attempting to surface • How customer will use end product
problem early before they have a • How customer may abuse the end
chance to occur product
• Benfit> save time and resources

98. FMEA WORK SHEET
P What can go Potenti Se Critic signi Pote Occure Desi Detecti Abuse by Revis
r wrong
o PFM
al effect
in
ve
rit
al fican
t
ntial
caus
nce gn
verif
on R customer ed
RPN
c
e
failure
mode
y es of
failur
icati
on
P
s
s
e
mech N
nais
s m
t
e
p
Flow chart the process Classify any special characteristics
Describe process and function List potential causes for each failure mode
List each potential failure mode Estimate likelihood of occurrence
Describe effect of each type of failure List prevention/detection control
Rank severity of failure Rank detection
Identify RPN

99. IMPROVE
Recommended Responsibility for Action Sev o Detection Revised
Action to improve RPN completing action Actually erity c RPN
Taken c
u
r
e
n
c
e
List recommended actions to lower RPN
List individual /depts for completing actions
List actual actions taken
Re compute RPN after corrective actions

100. CONTROL PLAN
Requirements Control Equipment Checked By Action plan
Process Imposed used
if out of
step control
condition
occurs
Repeat steps for all processes /sub processes/ parts
Develop a control plan and a contingency plan

101. PART SIX
HOW WE CAN TAKE A PROJECT
TO MAKE OUR ORGANIZATION A LEAN SIX
SIGMA

102. Six Sigma Method
DMAIC: To improve any existing product or process
Define Measure Analyze Improve Control
Who are the What are the How can we
customers and most important maintain the
what are their causes of the improvements?
priorities? defects?
How is the process How do we
performing and remove the
how is it causes of the
measured? defects?
102

103. Six Sigma Tool Box
Define Measure Analyze Improve Control
Benchmarking Value Stream Fishbone Modeling SPC Charts
Map Diagrams
Process Flow Cause & Effect FMEA Tolerance Performance
Mapping Control Metrics
Flow charts Defect Metrics Root Cause Defect Control Multiple
Analysis Regression
Project Charter Statistical ANOVA Design Train
as a Team Analysis Changes
Set Up a Plan & Data Collection Cause & Effect Piloting
Guidelines for Run Charts, Diagram
Team Time Series
Chars, Time
Value Charts,
Pareto Charts
Review Existing Sampling Scatter Plots Best Practices
Data
SIPOC

104. DEFINE PHASE
• Define Phase: The goal of define phase is to define the
project scope by understanding background information
about the process and its customers
• Tools used in define phase as voice of customer,
project charter are used decide the scope of project
and define boundaries of improvement effort.
• It also identifies key stakeholders, time lines,
improvement priorities, and improvement targets at the
beginning of project.

105. TOOLS AND METHOD IN DEFINE STAGE
DEFINE PHASE STEPS/TOOLS
VOC/ QFD/ KANO MODEL/ BENCHMARKING/ CTQ/
PROJECTCHARTER/ SIRPORC/DEFINE
RESPONSIBILTY AUTH
DEFINE CUSTOMER REQUIREMNTS VOC
CTQ DEFINATION
DEVELOP PROJECT CHARTER PROBLEM STATEMENT
GOAL STATEMENT
BUSINESS NEED ADDRESSED SCOPE
CONSTRAINTS
RESOURCES
ASSUMPTIONS GUDILINES
TEAM COMPOSITION
PRELIN PROJECT MILESTONES
DEVELOP HIGH LEVEL PROCESS MAP SIPOC/SIRPOC
ACTION PLAN FOR PROCESS STANDARDIZATION INTERIM CONTAINMENT ACTION

106. FINAL DEFINE STAGE RESULTS
• What are Customer driven CTQ and Process driven
CTQ
• Sources of Existing Customer data
• Assessing Customer requirements and expectations
• Recall Vital few customer CTQ
• Analyze VOC and its impact on CTQ
• Translate Customer needs into CTQ

107. Measure Overview
What is the Measure phase?
The Measure phase defines the defects, establishes improvement
goals, determines that the system of measuring defects is
repeatable and reproducible and gathers data about the process.
Why is the Measure phase important?
The Measure phase ensures that you specifically define the
defects you are going to measure and that your measurement
system is accurate before you begin to actually measure the
process.
107

108. Measure
• The primary purpose of • Deliverables from the
the measurement phase Measure phase include:
is to answer the
questions, • Collected data
• "How are we doing?" and • Selection of what
"How far do we have to measures to use
go?“
• The team needs to • Baseline of the "current
establish a baseline of state“
the current performance
level. • Data collection plan

109. • Develop operational definitions for each CTQ
characteristic
• Figure out how to measure internal processes affecting
each CTQ, KPOV (Key process output variables), KPIV
(Input Vars)
– Y = F(x)
• Figure out what data we need to collect
– Easy to collect correctly
– Interrupt process as little as possible
– Collectors understand why collecting
– “gage study” to determine the validity (repeatability and
reproducibility) of the measurement procedure for each CTQ
• Baseline data
– Collect baseline capabilities for each CTQ
– Determine the process capability for each CTQ

110. TOOLS IN MEASURE STAGE
Define Defect, Based on CTQ and process knowledge ,
Opportunity, Unit, metric Benchmarking
Identify CTPs Using Pareto, Correlation Analysis CT Matrix
Develop Data Collection Plan Questionnaires, sampling plans
Validate measurements system MSA/Gage R&R
Collect data and tabulate data Check sheet and Data sheet
Calculate Process capability and Cp Cpk DPMO /Sigma Level
Sigma base line calculations

111. WHAT CAN BE MEASURED
• Input Indicators - Measures that • Output Indicators - Focus on the
evaluate the degree to which the end result. Measures that evaluate
inputs to a process (provided by dimensions of the output - may
suppliers) are consistent with what focus on the performance of the
the process needs to efficiently business as well as that
and effectively convert inputs into associated with the delivery of
customer satisfying outputs. products and services to
customers.
• Examples of input indicators
– . # of customer inquires • . Retention rates
– . Type of customer inquires • . Total # done, sold, made, etc.
– . # of orders • . On-time
– . # of positions open • . Complete
– . Accuracy of the analysis
– . Timeliness

112. WHAT ALL CAN BE MEASURED
AS GOOD AND DEFECTS
• Process Indicators - Focus turning opportunities into desired
results. Measures that evaluate the efficiency, effectiveness and
quality of the transformation processes (i.e., the steps and activities
used to convert inputs into customer satisfying outputs.)
• Examples of process metrics include:
– . Availability
– . Time to do something, timeliness
– . # of non-standard request
– . Yield (first time through)
– . # of exceptions (e.g., non standard approvals)
– . Quality level (could also be an output metric)

113. TIME METRICS
• Lean process improvement teams often look at time metrics.
• Takt time - the unit-to-unit pace of production required to meet
customer demand. This is the ideal pace for doing work. At this rate
production and demand are in balance.
• Cycle time - the actual elapsed process time from the completion
of one output unit to completion of the next unit. Cycle time for a
process is the length of time for the longest step within the
process.So if a four step process has three steps of two minutes
each, and one step of five minutes. The cycle time is five minutes.
• Lead Time - the length of time from the beginning point of a process
to the completion of a finished output (calculation varies depending
on scope; it includes: queue, wait and move times).
• Time metrics can also include frequency, degree of impact,
response time,

114. RESULTS OF MEASURE STAGE
• Do the metrics link to the team's improvement goals?
• Do the metrics have a balance of viewpoints (customer, supplier,
process, productivity, quality, etc.)?
• Was a plan developed for collecting the information?
• Was a baseline established?
• Does the data collected look like it will provide the necessary information for analysis
and decision making purposes?
• Are all significant process steps captured?
• Was the data validated for reasonableness by anyone outside of the team?
• Which metrics may be useful in sustaining improvement after implementation of the
changes?

115. Category Goal Metric Base
Accuracy % of revisions through database
100% requests and 50%
production
orders