OMF751 LEAN SIX SIGMA

OBJECTIVE:
To gain insights about the importance of lean manufacturing and six sigma practices.

Course Outcome
CO 1 Understand the fundamentals of Lean and Six sigma.
CO 2 Understand the tools and techniques used in analysis.
CO 3 Understand the six sigma methodologies.
CO 4 Understand the implementation and challenges in six sigma.
CO 5 Understand the evaluation and continuous improvement methods.

UNIT I LEAN & SIX SIGMA BACKGROUND AND FUNDAMENTALS

Historical Overview – Definition of quality – What is six sigma -TQM and Six sigma - lean manufacturing and six sigma-
six sigma and process tolerance – Six sigma and cultural changes – six sigma capability – six sigma need assessments -
implications of quality levels, Cost of Poor Quality (COPQ), Cost of Doing Nothing – assessment questions

UNIT II THE SCOPE OF TOOLS AND TECHNIQUES 9

Tools for definition – IPO diagram, SIPOC diagram, Flow diagram, CTQ Tree, Project Charter – Tools for measurement –
Check sheets, Histograms, Run Charts, Scatter Diagrams, Cause and effect diagram, Pareto charts, Control charts, Flow
process charts, Process Capability Measurement, Tools for analysis – Process Mapping, Regression analysis, RU/CS
analysis, SWOT, PESTLE, Five Whys, interrelationship diagram, overall equipment effectiveness, TRIZ innovative
problem solving – Tools for improvement – Affinity diagram, Normal group technique, SMED, 5S, mistake proofing, Value
stream Mapping, forced field analysis – Tools for control – Gantt chart, Activity network diagram, Radar chart, PDCA
cycle, Milestone tracker diagram, Earned value management.

UNIT III SIX SIGMA METHODOLOGIES 9

Design For Six Sigma (DFSS),Design For Six Sigma Method - Failure Mode Effect Analysis (FMEA), FMEA process -
Risk Priority Number (RPN)- Six Sigma and Leadership, committed leadership – Change Acceleration Process (CAP)-
Developing communication plan – Stakeholder

UNIT IV SIX SIGMA IMPLEMENTATION AND CHALLENGES 9

Tools for implementation – Supplier Input Process Output Customer (SIPOC) – Quality Function Deployment or House of
Quality (QFD) – alternative approach –implementation – leadership training, close communication system, project selection
– project management and team – champion training – customer quality index – challenges – program failure, CPQ vs six
sigma, structure the deployment of six sigma – cultural challenge – customer/internal metrics

UNIT V EVALUATION AND CONTINUOUS IMPROVEMENT METHODS 9

Evaluation strategy – the economics of six sigma quality, Return on six Sigma (ROSS), ROI, poor project estimates –
continuous improvement – lean manufacturing – value, customer focus, Perfection, focus on waste, overproduction –
waiting, inventory in process (IIP), processing waste, transportation, motion, making defective products, underutilizing
people – Kaizen – 5S

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UNIT I LEAN & SIX SIGMA BACKGROUND AND FUNDAMENTALS

EVOLUTION OF QUALITY
1920s
Some of the first seeds of quality management were planted as the principles of scientific
management swept through U.S. industry.
Businesses clearly separated the processes of planning and carrying out the plan, and union
opposition arose as workers were deprived of a voice in the conditions and functions of their work.
The Hawthorne experiments in the late 1920s showed how worker productivity could be impacted
by participation.
1930s
Walter Shewhart developed the methods for statistical analysis and control of quality.
1950s
W. Edwards Deming taught methods for statistical analysis and control of quality to Japanese
engineers and executives.
Joseph M. Juran taught the concepts of controlling quality and managerial breakthrough.
Armand V. Feigenbaum’s book Total Quality Control, a forerunner for the present understanding
of TQM, was published.
Philip B. Crosby’s promotion of zero defects paved the way for quality improvement in many
companies.
1968
The Japanese named their approach to total quality companywide quality control.
Kaoru Ishikawa’s synthesis of the philosophy contributed to Japan’s ascendancy as a quality
leader.
Today
TQM is the name for the philosophy of a broad and systemic approach to managing organizational
quality.
Quality standards such as the ISO 9000 series and quality award programs such as the Deming
Prize and the Malcolm Baldrige National Quality Award specify principles and processes that comprise
TQM.

DEFINITION OF QUALITY
 Predictable degree of uniformity and dependability at low cost and suited to the market -Deming
 Fitness for use-Juran
 Conformance to requirements - Crosby
 Minimum loss imparted by a product to society from the time the product is shipped - Taguchi
 A way of managing the organization -Feigenbaum
 Correcting and preventing loss, not living with loss - Hosffin .
 The totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs – ISO
The Quality can be quantified as follows
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 Q = P/E , where Q = Quality , P = Performance and E = Expectations
If Q is greater than 1, then the customer has a good feeling about the product or service.
Definition by ISO 9000:2000 It if defined as the degree to which a set of inherent characteristics fulfils
requirement.
 Degree – good, excellent, bad
 Inherent – existing, within, natural
 Requirement – need or expectation
DIMENSIONS OF QUALITY
Quality has many dimensions. The dimensions of quality are nothing but the various features/aspects of
product or service by using which the customers may evaluate the quality of the product or service. They are
two categories as
1. Dimension of product quality
2. Dimensions of Service quality
Dimension of product quality
All these nine dimensions can be clearly explained with the example of LCD projector.
Performance - Primary product characteristics, such as the brightness of the picture
Features - Secondary characteristics, added features, such as remote control.
Conformance - Meeting specifications or industry standards, workmanship.
Reliability – Consistency of performance over time, average time for the unit to fail.
Durability – Useful life, includes repair
Service – Resolution of problems and complaints, ease of repair.
Response – Human-to-human interface, such as the courtesy of the dealer.
Aesthetics – Sensory characteristics, such as exterior finish
Reputation – Past performance and other intangibles, such as being ranked first.
These dimensions are somewhat independent therefore a product can be excellent in one dimension
and average or poor in another.
Therefore quality products can be determined by using a few of the dimensions of the quality.
Marketing has the responsibility of identifying the relative importance of each dimension of quality.
These dimensions are then translated into the requirements for the development of a new product the
improvement of an existing one.
Dimensions of Service quality
 Tangibles: Appearance of physical facilities, equipment, personnel, and communication materials.
 Reliability: Ability to perform the promised service dependably and accurately
 Responsiveness: Willingness to help customers and provide prompt service.
 Assurance: Knowledge and courtesy of employees and their ability to convey trust and confidence.
 Empathy: Caring, individualized attention the firm provides its customers.

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The History of Lean Manufacturing Lean manufacturing is not new, the ideas behind it were originally introduced
by Henry Ford. He liked to keep the production standards incredibly high so that each step flowed naturally into
the next, thus resulting in very little waste.

Toyota then accommodated this process and developed the Toyota Production System, which became one of the
most efficient systems in the world.

The biggest difference between Lean vs Six Sigma is that they view the causes of waste very differently. The
ultimate goal of lean manufacturing is to reduce waste by eliminating bottlenecks and improving the quality of
your products.

Lean identifies seven areas of waste that are common in most production systems. Let’s look at each of the
“seven deadly wastes” in more detail.

The 7 Deadly Wastes

 Overproduction: This occurs when products are being produced that there is no customer demand for.

 Waiting: Waiting is the lag time in between each step in production. When employees are left waiting no
value is being added.
 Transport: This type of waste occurs when materials or products are moved inefficiently.
 Motion: Motion refers to poor work standards and employees moving inefficiently between tasks.
 Over-processing: Over-processing occurs when you spend too much time producing a product or produce it
in a very inefficient way.
 Inventory: This happens when your inventory levels are too high and you have too much work in progress at
one time.
 Defects: Defects are the number of time employees spend identifying and fixing production mistakes.
Implementing Lean will allow employees to move materials less frequently which will improve the quality and
require less overall inventory. It also allows quality issues to be dealt with during the manufacturing process,
which saves both time and resources because employees aren’t scrambling to fix mistakes later.

All of the improvements listed above will result in a more successful manufacturing process. As the products
are being produced and delivered on time, the customers will have a more satisfying experience. And because
the products were produced to a higher standard of quality, there will be fewer customer complaints.

The History of Six Sigma

Another main difference in Lean vs Six Sigma is that lean is used primarily in production while Six Sigma can
be used to reduce errors in production as well as nonproduction environments.

Six Sigma looks to reduce waste and it defines a defect as anything that doesn’t meet the customer’s
expectations. It focuses more on eliminating any variation in the customer experience. A Six Sigma company
will produce no more than 3.4 defects for every million opportunities.Six Sigma was introduced in the 1980’s
by an engineer for Motorola named Bill Smith. Smith believed that by getting rid of variation you can improve
the customer experience and increase your overall savings.
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Six Sigma has helped Motorola save millions of dollars in revenue. After witnessing Motorola’s success, other
companies have adopted Six Sigma and seen dramatic savings as well. General Electric, Toshiba, Bank of
America, and Intel have all adopted Six Sigma principles and seen dramatic improvements.

SIX SIGMA:
Six sigma stands for six standard deviation from mean (sigma is the Greek letter used to represent standard
deviation in statistics). The objective of six sigma principle is to achieve zero defects products/process. It allows
3.4 defects per million opportunities.
Six Sigma is a set of techniques and tools for process improvement. It was developed by Motorola in 1986. Jack
Welch made it central to his business strategy at General Electric in 1995.The term “Six Sigma” is derived from
the normal distribution used in statistics. Many observable phenomena can be graphically represented as a bell-
shaped curve or a normal distribution. Figure 1 shows a theoretical normal distribution (smooth blue line) with a
mean (center of distribution) of zero and a standard deviation (spread of distribution) of one, as well as a random
sample of 10,000 normally distributed data points (histogram) with a mean of zero and a standard deviation of
one.

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DMAIC – It is used for improving existing processes/products.
DMADV – It is applied to new processes/products.
SIX SIGMA PROJECT METHODOLOGY:

The DMAIC project methodology has five phases:

 Define the system, the voice of the customer and their requirements, and the project goals, specifically.
 Measure key aspects of the current process and collect relevant data.
 Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships
are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under
investigation.
 Improve or optimize the current process based upon data analysis using techniques such as design of
experiments, poka yoke or mistake proofing, and standard work to create a new, future state process. Set
up pilot runs to establish process capability.
 Control the future state process to ensure that any deviations from the target are corrected before they result
in defects. Implement control systems such as statistical process control, production boards, visual
workplaces, and continuously monitor the process

DMADV or DFSS

The DMADV project methodology, also known as DFSS ("Design for Six Sigma") features five phases:

 Define design goals that are consistent with customer demands and the enterprise strategy.

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 Measure and identify CTQs (characteristics that are Critical to Quality), product capabilities, production
process capability, and risks.
 Analyze to develop and design alternatives, create a high-level design and evaluate design capability to
select the best design.
 Design details, optimize the design, and plan for design verification. This phase may require simulations.
 Verify the design, set up pilot runs, implement the production process and hand it over to the process owner.

KEY CONCEPTS OF SIX SIGMA:

Critical to Quality: Attributes most important to the customer

Defect: Failing to deliver what the customer wants
Process Capability: What your process can deliver
Variation: What the customer sees and feels
Stable Operations: Ensuring consistent, predictable processes to improve what the customer
Sees and feels.
Design for Six Sigma: Designing to meet customer needs and process capability

Six sigma organization (3.42- 3.43)

For the six sigma process to be successful, the involvement and participation of all the employees as well
as the top management of the organization are crucial. The roles and responsibilities of the members of the six
sigma organization are given below.

i. Quality council/Apex council: It is the apex body formed by heads at the functions with its chairman as
the CEO (chief Executive Officer) or the MD (Managing Director). The apex council controls and
periodically reviews the entire six sigma activity
ii. Sponsor: The sponsor sponsors the project, reviews and monitors its progress on a day-to-day basis and
ensures the implementation of the improvement suggestions
iii. Champions: Champion is a senior executive (such as vice-president) with significant overall business
responsibility
iv. Master Black belts: A master black belt (MBB) is an expert (such as chief engineer) in six sigma
techniques and application. He plays a key role in training and coaching black belts.
v. Black Belts: A black belt (BB) is a process improvement team leader who is trained and certified in six
sigma methodology and tools. He is responsible for successful project execution.
vi. Green Belts: Green Belts are similar to black belts, but they do not have a full-time role.
Team members: The team member is a fresher initiated to the six sigma project. They focus on day-to-
day work and assist green belts.

Advantages of Six sigma (3.43-3.44)

(i) Improved customer satisfaction
(ii) Improved quality, efficiency and cost of products sold.
(iii)Creation of self-sustaining infrastructure
(iv)Standardized methodology, creating commonality in expectations, solutions, and financial tracking
of the process.
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Methodology, Service Sector including IT Practicing Six Sigma (3.44 to 3.45)

Six sigma at Wipro: Wipro has adopted the project approach for six sigma,where projects are identified on the
basis of the problem areas under each of the critical business processes that adversely impacts the business
significantly. Wipro has evolved following six sigma methodologies.

1. For developing new processes:

i. DFSS Methodology- Wipro employ DFSS methodology for software development. The methodology uses
rigorous in process metrics and cause analysis throughout the software development lifecycle for defect
free deliveries and lower customer cost of application development.it is used for designing new processes
and products.
ii. DCAM Methodology-used for designing for customer satisfaction and manufacturability.

2. For improving existing processes:

i. TQSS Methodology - used for defect reduction in transactional processes.

ii. DMAIC methodology - used for process improvement in non-transactional process.

3. for reengineering:

i. CFPM Methodology-used for cross functional process mapping.

ii. The list of players at Wipro is as below:
(a) Executive management
(b) Six-sigma champions and deployment leaders
(c) Financial executives
(d) Black belts
(e) Green belts
(f) Yellow belts.
Six sigma projects at Wipro are:

i. Driven by business heads, also called champions for the projects.

ii. Led by Green Belts (GB)
iii. Assisted by Black Belts (BB)
Currently 15000+ employees are trained in six sigma methodologies. Wipro has also built up a six-sigma skill
base of over 180 certified black belts while helping to roll out over a 1000 projects.

Applications to manufacturing in Six Sigma (3.45)

Six Sigma implementation methodology in a manufacturing organization encompasses the following
steps.
1. Concept Introduction Seminar- for senior and operational management.
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 2. Formulating Six Sigma Deployment Strategies-with senior management.
3. Selection of the Six Sigma Projects - in consultation with senior and operational management.
4. Selection of Suitable Champions, Black and Green Belt candidates.
5. Clearly defining the Roles and Responsibilities
6. Training for Six Sigma Awareness, as also for Champions, Green and Black Belts.
7. Consulting and Hand Holding for Implementation of Six Sigma Projects.
8. Assisting the Champions in Tollgate Reviews and Final Project Evaluation.
9. Participation in the Monthly Review by the Steering Committee.

Benefit of Six Sigma Manufacturing (3.46)

Six sigma manufacturing is actually one of the most popular methods used by people in the world
nowadays to improve the efficiency of production. This is regarded as a valued strategy for management and a
lot of organizations are actually using this method to get the positive result in production of goods and services.

Difference between TQM and Six Sigma

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Difference between Lean Manufacturing and Six Sigma
 First off, understand that there is a strong connection between Lean and Six Sigma. Both methodologies seek
to make processes and the business as a whole more efficient by removing defects or waste through focused
efforts that likely involve a project-based approach.
 Essentially, Six Sigma and Lean systems have the same goal. They both seek to eliminate waste and create
the most efficient system possible, but they take different approaches toward how achieving this goal. In
simplest terms, the main difference between Lean and Six Sigma is that they identify the root cause of waste
differently
 Lean practitioners believe that waste comes from unnecessary steps in the production process that do not add
value to the finished product, while Six Sigma proponents assert that waste results from variation within the
process.
 One of differences can be found when Lean or Six Sigma is applied pervasively as a way of managing the
business. Both include training as a core component but there is a subtle difference between the approaches
used. While both Lean and Six Sigma need trained practitioners to be successful, Lean has an additional value
placed on training that does not exist in Six Sigma. A core concept of a Lean culture is a cross-trained
workforce. Cross-trained in the work process, not specifically in Lean tools. This is an important part of a
Lean Transformation because a cross-trained workforce supports job rotation to keep workers from getting
bored and complacent.
 Another significant difference is evident in the use of measurements. Both Lean and Six Sigma emphasize
measuring performance, the approach is very different however. Six Sigma seeks to measure process
performance relative to the problem being worked on at the project level or of the most important measures
of business success through Dashboards.
 These dashboards\ cascade down from the top and rarely show up on the shop floor, so the workers don’t
really know how they are doing. Lean, on the other hand, focuses measurements on the shop floor FIRST and
places a high value on managers going to the Gemba, or shop floor to see for themselves how things are going.
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 This suggests a bottom up approach to measurement, starting with the work cell and proceeding UP to the
plant and the company from there. This is supported by Visual Factory concepts.
 Six Sigma is a tops-down management philosophy that only occasionally reaches the shop floor whose main
practitioners are mid-level managers and engineers. Six Sigma projects are chosen by reviewing performance
at a high level and imposing the change down with some involvement from the “doers”. Lean, on the other
hand is characterized by the idea of “servant leadership” in which the leadership views one of its main
functions to be enabling the success of the workers. Management goes to the floor to see what is happening,
values effective communication, training, promotion, and learning and the initiative start and complete
improvement work starts at the lowest level, the individual worker and the work cell member’s desire to
improve their own work.
 Lean tends to be used for shorter, less complex problems-Often time driven- Focus is on eliminating wasteful
steps and practices .Six Sigma is a bigger more analytical approach – often quality driven – it tends to have a
statistical approach. Focus on optimizing the important steps – reducing defects.
 Although both methodologies are focused on process and quality improvement, Lean is formalization and
codification of experience and judgment which is not a feature of Six Sigma. Lean emphasizes speed and
waste, however Six Sigma emphasizes variation, defects and process evaluation.
The principles of Lean and Six Sigma are compared. This table compares the principles of Lean with
the principles of Six Sigma.

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 Lean Six Sigma
Lean Six Sigma is an approach to integrating the power of Six Sigma Tools and Lean Enterprise Tools which
can be applied within an organization to create the fastest rate of improvement, maximize shareholder value,
and increase customer delight
Lean Six Sigma (LSS) tries to combine the advantages of these two approaches and minimize the weakness
of both. The Lean Six Sigma methodology entails using lean methodologies to identify and remove non-value
adding activities and processes, and then applying Six Sigma methodologies to identify and eliminate process
variation.
The fusion of Lean and Six Sigma is required because:

 Lean cannot bring process under statistical control, and

 Six Sigma alone cannot dramatically improve process speed or reduce invested capital.
By integrating tools and processes of Lean and Six Sigma, we’re creating a powerful engine for improving
quality, efficiency, and speed in every aspect of business.
Embedding a rigorous methodology like lean six sigma into organizational culture is not a short journey, but
it is a deep commitment not only to near-term results but also a long-term, continuous, even break-through
results.

Creating a Six Sigma Culture in Your Workplace

A Six Sigma culture has the potential to literally transform employees.

Those with Six Sigma certification are cultured to see themselves and the work they do differently than
traditional employees. They’re taught to:

 See work in terms of process flow, and not just departments and functions
 Take an active role in defining improvements and identifying solutions, instead of relying on
management
 Utilize the appropriate skills to create and implement solutions
 Actively involve themselves in continuous improvement efforts

Why Culture Is Important

Once Six Sigma training has been instilled in employees and the transformation is complete, organizations need
a company culture that sustains these attributes and prevents employees from reverting to their old behavior and
mindset. Without a company culture that supports Six Sigma methodology, employees are prone to gradually
surrender the power they have acquired through Six Sigma training and return to their old behaviors of
problem-solving. A strategy of continuous improvement based on Six Sigma methodology that is not supported
by a Six Sigma culture has a much greater chance to fail.

Create Awareness and Desire: This process starts at the top, as executive management communicates the
benefits of using Six Sigma methodology, down through the organization. This can provide four important
benefits:
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  Projects are better able to stay on time and budget
 Management can support Six Sigma projects by allocating the proper resources
 Management’s support for Six Sigma projects can decrease resistance from employees and other
stakeholders
 Employee productivity may be less impacted by the change

Expose the Organization to Change: Once upper management has laid the groundwork for a change in culture
by placing its support behind Six Sigma, the methodology can be disbursed throughout the organization. The
best way to infuse Six Sigma into the organization is through education, training and certification. The more
employees exposed to Six Sigma through online and offline training, the more entrenched it can become in the
company culture.
Reward Generously: What you reward, you typically get more of. When leaders and employees show behavior
that promotes a Six Sigma culture, recognize their contributions. Be sure to explain how behavior that supports
Six Sigma benefits the company. Organizations that create a culture that supports Six Sigma can realize the
long-term benefits of a workforce that constantly seeks process improvement.

Process Capability:
Process capability compares the process output with the customer’s specification.
The purpose of a process capability study is to compare the process specification
to the process output and determine statistically if the process can meet the customer
specification.

The procedure is as follows

1. Take 25 subgroups of size 4, for a total of 100 measurements.
2. Calculate the range, R, for each subgroup.
3, Calculate the average range: R = Σ R/g.
4. Calculate the estimate of the population standard deviation:

𝜎 = ̅̅̅̅̅̅̅
𝑅/𝑑2
where d2 is obtained from Appendix Table A and is 2.059 for n = 4.
5. The process capability will equal 6σ.

Remember that this technique does not give the true process capability and should be
used only if circumstances require its use. Also, more than 25 subgroups can be used to
improve accuracy. Tolerance is the difference between the upper specification limit (USL) and the lower
specification limit (LSL). Process capability and the tolerance are combined to form a
capability index, defined as

USL − LSL
Cp =
6σ
where USL-LSL = upper specification-lower specification, or tolerance
Cp = capability index
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 6𝜎 = process capability
If the capability index is greater than 1.00, the process is capable of meeting the specifications; if the index is
less than 1.00, the process is not capable of meeting the speculations.

The capability index does not measure process performance in terms of the nominal or target value. This
measure is accomplished using Cpk ,which is

C ̅ )or (X
Min{(USL−X ̅ −LSL)}
pk= 3σ

Cpk value of 1.00 is the de facto standard, with some organizations using a value of 1.33.figure 18-25 illustrates
Cp and Cpk values for processes that are centered and also off center by lσ.

Comments concerning Cp, and Cpk are as follows:

1. The Cp value does not change as the process center changes.
2. Cp= Cpk when the process is centered.
3. Cpk is always equal to or less than Cp
4. A Cpk value greater than 1.00 indicates the process conforms to specifications.
5. A Cpk value less than 1.00 indicates that the process does not conform to specifications.
6. A Cp value less than 1.00 indicates that the process is not capable.
7. A Cpk value of zero indicates the average is equal to one of the specification limits.
8. A negative Cpk value indicates that the average is outside the specifications.

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Six Sigma Assessments
The assessment breaks down the individual into 4 categories: Lean, Six Sigma, DFSS and Soft Skills. The form
uses the individuals teaching, and actual hands-on use of the tools, to determine their experience level.

Often times, people can talk about the tools for process improvement very clearly, but they haven’t actually
performed them in real-life, or have never taught the material (which really shows their knowledge on a topic).
For each tool, the individual is given a score of 1-10 based on the number of times their actual work experience
with the tool or concept. For example, someone will be rated a “1” if they have never heard of the tool, a “5” if
they have taught a class on the tool 1-4 times in the past, and a “10” if they have completed the tool over 20 times.

Each category receives an average score for that category, so an individual can score an “8.1” in Six Sigma, a
“6.3” in DfSS, a “9.4” in Soft Skills, but a “2.5” in Lean. You can decide whether you want to look at the overall
scores, or just the scores within certain categories.

If this individual is a current employee, then you can easily identify that they should be leading more 5S or VSM
events, and getting more involved in the teaching of these topics, in order to increase their Lean score (and overall
score). This assessment is also very objective, since it looks at actual volume of work and teaching performed,
not just a self-assessment by the individual.

Rating assessments of 1-10 are individually defined and categorized into three levels:

 basic = levels 1-3

 practitioner = levels 4-7
 expert=levels 4-10
Rating levels are applied to each of the four categories:

1. Lean
2. Six Sigma
3. Soft Skills
4. DFSS
This score is developed from the measuring of each criteria listed in the categories. User decides whether to
look at the overall score generated, or the scores within certain categories.

Implications of Quality Levels

Professionals who earn Six Sigma certification become key stakeholders in improving the quality of operations
within their organizations. They strive to eliminate variation in manufacturing and business operations by
implementing standard processes and establishing metrics that minimize the potential for defects.

White Belt

Professionals are considered Six Sigma White Belts if they have not undergone a formal certification program or
extended training. A single session with an overview of relevant methods and vocabulary for LSS shows workers
at all levels of an organization how they contribute to efficient, reliable outcomes. With this basic grounding,
White Belts participate in projects and problem-solving tasks related to quality management and waste reduction.

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Yellow Belt designation indicates an exposure to Six Sigma concepts that goes beyond the fundamentals provided
for a White Belt. Yellow Belts may have attended training sessions over a day or two, developing the knowledge
they need be assigned to a project as fully contributing team members. They may guide limited-scope projects
and assist managers at higher belt levels.

Green Belt certification requires professionals to attend a full course that introduces them to Six Sigma methods
for developing and improving products, services and processes. They learn to apply problem-solving frameworks
such as DMAIC: Define, Measure, Analyze, Improve and Control. This improvement cycle lays out a series
of steps to understand the problems in a business process, set useful metrics for measuring changes, examine
relevant data, implement solutions and then sustain the results over time.

Green Belt training is valuable for individuals in roles like project management, health care administration
or financial management, giving them an understanding of performance metrics and tools like control charts
and Failure Modes and Effects Analysis (FMEA). After certification, professionals are ready to take charge of
projects, making the connections between LSS concepts and the goals of their organization. They can put
leadership tools into action, find chances to eliminate waste and glean useful insights from data.

Black Belt After completing their Green Belt courses, leaders may take their skills to next level by pursuing Black
Belt certification. This advanced training requires previous knowledge of LSS strategies as professionals master
the skills they need to plan, lead and explain more complex and expansive projects or organizational changes.
Students in a Black Belt-level course acquire a rigorous understanding of how to drive organization-wide changes,
analyze statistics, deploy Lean principles and supervise projects for a team of Green Belts.

During a Black Belt-level course, professionals demonstrate what they’ve learned and gain hands-on experience
by conducting a project for their employer or a nonprofit organization. By setting down a project charter,
collecting data and employing Six Sigma tools in a real-world context, students develop the abilities they need to
make their businesses more productive and increase customer satisfaction. Black Belts go on to execute LSS
projects, monitor results and manage team dynamics. They run quality improvement and Lean efforts with the
potential to make a significant impact on company-wide productivity.
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Master Black Belt A seasoned Black Belt with strong leadership and problem-solving skills can go on to become
a Master Black Belt in LSS. This designation indicates that an expert takes a broad view of strategy throughout a
business, coordinating teams across

A Champion is an upper-level manager who leads LSS strategy and deployment. Based on the objectives set by
executive leadership, Champions ensure that all initiatives to lower waste and remove defects come together in
alignment with a company’s needs for growth. Aided by Master Black Belts, these managers mentor the leaders
involved in LSS implementation and track their progress.

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COST OF POOR QUALITY
Quality costs are defined are those costs associated with the non-achievement of product or service quality as
defined by the requirements established by the organization and its contracts with customers and society.
Simply stated, quality cost is the cost of poor products or services.
CATEGORIES & ELEMENTS OF QUALITY COST
I. Preventive Cost Category
1. Marketing/Consumer/User:
Costs are incurred in the accumulation and continued evaluation of customer and user quality needs and
perceptions affecting user satisfaction with the organizations product or service.
2. Product/Service/Design Development:
Costs are incurred to translate customer and user needs in to reliable quality standards and requirements and to
manage the quality of new product or service.
3. Purchasing:
Costs are incurred to assure conformance requirements of supplier parts, materials or processes and to minimize
the impact of supplier nonconformance on the quality of delivered products or services.
4. Operations (Manufacturing or service):
Costs are incurred in assuring the capability and readiness of operations to meet quality standards and
requirements and to impart quality education to operating personnel.
5. Quality Administration:
Costs are incurred in the overall administration of the quality management function.
II. Appraisal Cost Category
1. Purchasing Appraisal Costs:
Purchasing appraisal costs can generally be considered the costs incurred for the inspection and test of
purchased supplies or service to determine acceptability to use.
2. Operations (Manufacturing or service) Appraisal Costs:
Operations appraisal costs can generally be considered the costs incurred for the test or audit required to
determine and assure the acceptability of product or service.
3. External Appraisal Costs:
External appraisal costs are incurred for field set up or installation and check out for the acceptance of
customers.
4. Review of Test & Inspection:
Costs are incurred for regular reviewing inspection and test data, prior to release of the product for shipment.
5. Miscellaneous Quality Evaluations:
Costs involved in quality audits to assure continued ability to provide acceptable support to the production
process.
III. Internal Failure Cost Category
1. Product or Service Design Failure Costs (Internal):
Design failure costs are the unplanned costs that are incurred because of inherent design inadequacies.
2. Purchasing Failure Costs:
Costs which are incurred due to the rejects of purchased items.
3. Operations (Product or Service) Failure Costs:
The costs associated with nonconforming product or service discovered during the operations process. It is
categorized in to three distinct areas: material review and corrective action, rework or repair costs and scrap
costs.
IV. External Failure Cost Category
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1. Complaint Investigations of Customer or User Service:
It includes the total cost of investigating, resolving and responding to individual customer and user complaints.
2. Returned Goods:
Costs incurred in evaluating, repairing and replacing goods.
3. Retrofit and Recall costs
Retrofit and recall costs are those costs required to modify or update products or field service facilities to a new
design change level, based on major redesign due to design deficiencies.
4. Warranty Claims
Warranty costs include the total costs of claims paid to the customer or user after acceptance to cover expenses,
including repair costs, such as removing defective hardware from a system, or cleaning costs, due to food or
chemical service accident.
5. Liability Costs
Liability costs are organization-paid costs due to liability claims, including the cost of product or service
liability insurance.
6. Penalties
Penalty costs are those costs incurred because less than full product or service performance is achieved as
required by contracts with customers or by government rules and regulations.
7. Customer or user good will
This category involves costs incurred that customers are not satisfied with quality of delivered product or
service because the customer’s quality expectations were greater than the quality they received.
8. Lost Sales
Lost sales comprise the value of the contribution to profit that is lost due to sales reduction because of quality
problems.

What Does “the Cost of Doing Nothing” Mean?

The external costs exist and are related to pollution. In order to fight pollution, we need to invest capital to improve
our equipment and repair the damages already incurred. Paying for these damages is unavoidable. Ignoring the
problem only leads to an increase in natural catastrophes, drought, species extinction, disease, starvation, and an
ever-growing worrisome list of problems.

In the case of global warming, money is needed to replace old industrial equipment and improve transport
mechanics in order to reduce greenhouse gas emissions. The idea is to invest in new technologies in order to avoid
the costs that we face each and every day.

We often hear people say: “The cost of doing nothing will be greater”. This means that if we do not change our
old habits, the consequences of everyday pollution will drastically affect the natural state of the planet. Therefore,
repairing the damages later on will require much more time, money, and effort than what is presently needed.
Unfortunately, the bulk of cost of cleansing the planet of the damages caused by gas emissions lies in our hands
since we are the first generation to assume the responsibility.

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Lean Six Sigma assessment questions (Study only questions, Answer for reference)

Q1. What is meant by COPQ in Six Sigma?

Cost of Poor Quality (COPQ) is the cost caused through producing defects.
Q2. What is the definition of DPMO or DPPM?
DPMO is Defects Per Million Opportunities and DPPM is Defective Parts Per Million
Q3. What is Pareto Principle?
The Pareto principle (or the 80/20 Rule) states that, for many events, roughly 80% of the effects come from
20% of the causes
Q4. Name some of the Quality Management tools in Six Sigma
There are a number of quality management tools. Some of them are cost-benefit analysis, CTQ Tree, SIPOC
analysis, COPIS analysis, and Taguchi methods. (Name at least five)
Q5. Name the different kinds of variations used in Six Sigma?
The different kinds of variation are — mean, median, range and mode.
Q6. Who forms the part of Six Sigma implementation team?
The Six Sigma implementation team usually consists of the following members:
1. Six Sigma Deployment Leader
2. Six Sigma Champion
3. Six Sigma Master Black Belt (MBB)
4. Six Sigma Black Belt (BB)
5. Six Sigma Green Belt (GB)
6. Six Sigma Yellow Belt (YB)
Q7. What is the difference between the Six Sigma DMAIC and DMADV methodologies?
The DMAIC methodology, instead of the DMADV methodology, should be used when a product or process is
in existence at your company but is not meeting customer specification or is not performing adequately.
The DMADV methodology, instead of the DMAIC methodology, should be used when:
 A product or process is not in existence at your company and one needs to be developed
 The existing product or process exists and has been optimized (using either DMAIC or not) and still does
not meet the level of customer specification or Six Sigma level
Q8. Can you explain the concept of fish bone/ Ishikawa diagram?
It is a visualization tool for categorizing the potential causes of a problem in order to identify its root causes.
Q9. What is load testing process?
It is the process of putting demand on a software system or computing device and measuring its process
Q10. What level of understanding do you have regarding the statistical tools?
This should reflect the skills that you have regarding the statistical tools with respect to Six Sigma. Be honest
while answering the question.
Q11. What is the difference between Cpk and Ppk?
Cpk is process capability index, which measures how close a process is running to its specification limits,
relative to the natural variability of the process and Ppk is process performance index, which verifies if the
sample that have been generated from the process is capable of meeting Customer CTQs (requirements).
Q12. Can you explain standard deviation?
Standard deviation indicates the degree of variation in a set of measurements or a process by measuring the
average spread of data around the mean.
Q13. What is process sigma calculation?
Process sigma is a measure of the variation in a process relative to customer requirements.
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Q14. What is the 1.5 sigma shift?
The 1.5 sigma shift adjustment takes into account what happens to every process over many cycles of
manufacturing.
Q15. What is Regression? When is it used?
Regression Analysis is a technique used to define relationship between an output variable and a set of input
variables.
There are several types of regression like Simple Linear Regression, Multiple Linear Regression, Curvilinear
Regression, Logit Regression and Probit Regression etc., which caters to a variety of requirements based on the
type of underlying data.
Q16. What is the difference between defect and defective?
A defect is any non-conformance of the unit of product with the specified requirements. A defective is a unit of
product which contains one or more defects.
Q17. What is the difference between Process Report and Product Report?
Process Report is used with continuous data that follow a bell curve distribution, while Product Report applies
to discrete data and therefore can be used for all type of distributions.
Q18. Explain FMEA
FMEA is a qualitative and systematic tool, usually created within a spreadsheet, to help practitioners anticipate
what might go wrong with a product or process.
Q19. What are X bar and R charts?
They are a set of two charts, which is the most commonly used statistical process control procedure used to
monitor process behavior and outcome over time.
Q20. Explain Flow charting and brain storming?
A flowchart is a diagram displaying the sequential steps of an event, process, or workflow. Brainstorming is a
technique used to quickly generate creative or original ideas on or about a process, problem, product, or service.
Q21. What is Lean Six Sigma?
Lean Six Sigma is a performance improvement methodology that involves removing stuff that do not add value
to the process and reducing variation. This philosophy relies on collaborative team effort. Lean Six Sigma
contributes to high quality and customer satisfaction.
Q22. What are benefits of using Lean Six Sigma?
The main benefits offered by a Lean Six Sigma process include –
 Eliminating defects
 Manage large teams
 Ensure more efficient business processes
 Better prioritization of tasks
 Better project visibility at the team level
 Increased team productivity
 Reduced time
Q23. What are the tools of Lean Six Sigma?
Various tools used in Lean Six Sigma include –
 FMEA
 Kaizen (continuous improvement)
 Pareto Chart
 Poka-yoke (mistake proofing or inadvertent error prevention)
 Regression Analysis
 Value Stream Mapping
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Q24. What are different quality levels of Six Sigma?
Six Sigma quality level is a methodology to measure the quality of a process. Every sigma level corresponds to
a number of acceptable defects per million, and the optimum sigma level is achieved when the process accuracy
goes to 3.4 defects per million opportunities. The admissible number of defects per million as per every sigma
level is –
1 – 6,90,000
2 – 3,08,537
3 – 66, 807
4 – 6, 210
5 – 233
6 – 3.4
Q25. What is FMEA?
Failure Mode Effects Analysis (FMEA) is a tool to quantify and prioritize risk within a Six Sigma process,
product, or system. This tool helps to take the essential steps for mitigating the risk.
Q26. What is SIPOC?
SIPOC is acronym for Supplies, Inputs, Process, Outputs and Customers. It is a tool that uses information from
these five segment and creates a process map, providing a high-level overview of a Six Sigma project. Many
organizations these days use the opposite acronym COPIS, putting customers first and explaining the value of a
customer to the organization.
Q27. What is MAIC in Six Sigma?
MAIC denotes –
Measure – Accounts for quantifying and benchmarking any process using actual data
Analyze – Includes using statistical tools to identify the root cause of any problem
Improve – Focus on solve the root cause of the problem
Control – Involves keeping checks on problems to avoid their reoccurrence and sustain the gains.
Q28. What is DFSS in a Six Sigma process?
DFSS is the acronym for Define for Six Sigma. It is a process improvement system that involves designing or
redesigning a service or a product as per Six Sigma quality standards.
Q29. Explain ARMI or RASI.
ARMI is an abbreviation for Approver, Resource, Member and Interested Party. It is a project management tool
to identify the personnel involved in a project and their key responsibility areas.
Q30. What is Standard Deviation?
Standard deviation is one of the most common methods to measure any degree of variation in a data set. It
measures the average spread of data around the mean most accurately.
Q31. What is a data collection plan?
A data collection plan is used to collect all the important data in a system. It covers –
 Type of data that needs to be collected or gathered
 Different data sources for analyzing a data set
Q31. What is MSA?
The full form of MSA is Measurement System Analysis. MSA is used to check if a measurement system is
accurate. It evaluates a system’s accuracy, precision and stability.
Q32. What do you know about Top-down approach in six sigma?
It is a process in Six Sigma implementation, which is in line with the business strategy and consumer
requirements, and paves way for common understanding and nomenclature. On the other hand, the major

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disadvantage of this process is that it has a very broad scope, thus is difficult to be executed within a stipulated
time.
Q33. What is VSM?
It is the acronym of Value Stream Mapping. This methodology is used to eliminate wastes from a process and
map the flow of information required to deliver a product or service.
Q34. What is an affinity diagram?
An Affinity Diagram is an analytical tool used to cluster or organize ideas into subgroups. These ideas are
mostly generating from discussions or brainstorming sessions and used in analyzing complex issues.
Q35. Explain the difference between a Histogram and a Boxplot.
A histogram graphical represents the frequency distribution of numeric data, while a Boxplot summarizes the
important aspects of continuous data distribution.
These are some of the popular questions that are asked in Six Sigma interviews. Always be prepared to answer
all types of questions technical skills, interpersonal, or methodology. Being prepared and practice are the ways
you can be successful in a Six Sigma job interview.

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