LEAN SIX SIGMA

GREEN/BLACK BELT
Here are benefits of Six Sigma certification
• Career Advancement
• Helps Nurture Managerial and Leadership Ability
• Standardization
• Improve Business Processes and Sustain Quality Improvement
• Excellent Salary
• Applicability across Industries
• Ensure Compliance
• Gain Hands-On Experience in Quality Management
• Better Understanding
• Organizational Growth
• Support Your Organization Eliminate Errors
• Improved Company Culture
• Widen the thinking capability
• Improve self-esteem
• Be competent in a highly competitive world
50% of your current knowledge
is irrelevant in every 2 years
Turning Words into Numbers and
Numbers into Data and data has to be
converted into decisions
Introductions
1. Who are you?

2. What do you do?

3. Your 2021 Goals?

4. Achievements if any?

5. Motivation for Six Sigma Green/Black Belt.?

6. Something that you enjoy

What do you mean by a GOOD
Organization?
“we didn’t do anything wrong, but somehow, we lost”
 What the Top Management wants?

The Greater Target set

by Management

Not Achieved
by current
activities
Improvement
Changing the Candidates
Business
Performance

Normal Improvement
Through Routine
Running The
business

Video
Month
 120

100

80
Net Profit

60

40

20

0
2016 2017 2018 2019
Year
Organizations wants Improvement..!!!

Net
Profit
Lean Six Sigma is the Improvement Blueprint
for the Organization
Prof. Yamaguchi san
What is Lean Six Sigma?

PHILOSOPHY METRIC
Life Improvement 3.4 Defects per
million

Lean Six
Sigma
MANAGEMENT
SYSTEM
METHODOLOGY
Job relationship
Systematic Approach
Framework (YB,
DMAIC
GB…)
 Does 6 Sigma Apply to Me ?

When there is an output … there is a Process

When there is a Process …there is Performance Variation

When there is Performance Variation …there is a 6 Sigma Opportunity

6 Sigma can be applied to ALL functions, disciplines and

business processes
 What is Lean Six Sigma ?
19

What is Six Sigma ?

Goal – Reduce variation to improve performance

(eg.3 liar)
Method – DMAIC / DFSS approach
 What is Lean Six Sigma?
20

What is Lean ?

Goal – Eliminate waste and increase process speed

Method
Genchi Genbutsu– Go and See the workplace (gemba).
Kaizen (Change for better) workshops
 Six Sigma or Lean Manufacturing?

Lean Manufacturing : Flow Focused

Lean cannot bring a process under statistical control

Six Sigma: Problem Focused

Can not dramatically improve process speed or reduce
invested capital
What is Lean Six Sigma?
Lean Six Sigma
➢ Removes Waste ➢ Reduces Variation
➢ Increases Speed ➢ Improves Quality
➢ Removes non-value added ➢ Reduces variation at each
process steps remaining step
➢ Fixes connections between ➢ Optimizes remaining process
process steps steps
➢ Focuses on the customer ➢ Focuses on the customer

Speed + Accuracy

Better Better Satisfied Satisfied

Delivery Quality Employees Customers
The Lean Six Sigma concept was first introduced in
2002 by Michael George in the book titled Lean Six
Sigma: Combining Six Sigma with Lean Production
Speed.
 How Six Sigma Originated at Motorola?

❖ Motorola corporation was facing a serious competitive challenge from

Japanese pagers in late 1970’s.

❖ Motorola lost a substantial market share and made losses on pagers.

❖ Motorola quality had not deteriorated in 1980 compared to earlier.

❖ The competition was offering much better products.

❖ The consensus was that “Our Quality Stinks”.

❖ How do we make better products?

 In the late 1970's, Dr. Mikel Harry, a senior staff engineer at Motorola's Government
Electronics Group (GEG), experimented with problem solving through statistical analysis. Using
BOB GALVIN
this approach, GEG's products were being designed and produced at a faster rate and at a lower
cost.

 Subsequently, Dr. Harry began to formulate a method for applying six sigma throughout

Motorola. In 1987 when Bob Galvin was the Chairman, Six Sigma was started as a
methodology in Motorola
BILL SMITH
 Bill Smith, an engineer, and Mikel Harry together devised a methodology with the focus on
defect reduction and improvement in yield through statistics.

 The term "Six Sigma" was coined by Bill Smith, who is now called Father of Six Sigma
Terms such as Black Belt and Green Belt were coined by Mikel Harry in relation to martial arts.
MIKEL HARRY
 Themes of Lean Six Sigma

• Focus on the Customer

• Data and Fact-Driven Management

• Process Focus

• Proactive Management

• Boundaryless Collaboration

• Drive for Perfection (with tolerance for failure)

 Success- Three Dimensions

Customer Process A Process B Vendor

Define Measure Analyze Improve Control

Driven by
customer
needs
Process Map Analysis
LSL USL

Led by
Senior
Mgmt Upper/Lower
• ••••
••
•
specification
•
• •
• •
•
• •••••
••
limits
••
Regression

35 100%
30
80%
25
20 60%
15 40%
10
20%
5
0 0%
L K A F B C G R D

Enabled by team. Process variation

Frequency Cumulative Frequency

Pareto Chart
 Success- Culture
Customer Process A Process B Vendor

Define Measure Analyze Improve Control

Driven by
customer
needs
Process Map Analysis
LSL USL

Led by
Senior
Mgmt Upper/Lower
• ••••
••
•
specification
•
• •
• •
•
• •••••
••
limits
••
Regression

35 100%
30
80%
25
20 60%
15 40%
10
20%
5
0 0%
L K A F B C G R D

Enabled by team. Process variation

Frequency Cumulative Frequency

Pareto Chart
Organization Team

Project Sponsor

Black Belt

Green Belt
 Six sigma Organization
There are many roles and responsibilities for successful implementation of Six Sigma

MBB
Black Belts
Green Belts
Yellow Belts
 People Structure

Level 1 Level 2 Level 3 Level 4

Yellow Belt Green Belt Black Belt Master Black Belt

Assistant Project team Project Leaders Mentors
80% of the members 10% of the 1% of the
Organization 50% of the Organization Organization
Organization
 Role of Green Belt

Support Six Sigma projects with higher ROI.

Lead Smaller Six Sigma projects.

Perform data collection & data analysis.

Manage the team in the absence of Black Belt.

 Role of Black Belt

Full time responsible for leading project teams

Training Green Belts in the DMAIC process

Should often act as mentors to other Black Belts

Must have at least completed 2 or 3 projects with total

annualized benefits of $250,000 (1cr).
Negative team dynamics
1. Overbearing members

2. Reluctant participants

3. Unquestioned acceptance

4. No public disagreements

5. Rush to accomplishment
 Success- Approach

Customer Process A Process B Vendor

Define Measure Analyze Improve Control

Driven by
customer
needs
Process Map Analysis
LSL USL

Led by
Senior
Mgmt Upper/Lower
• ••••
••
•
specification
•
• •
• •
•
• •••••
••
limits
••
Regression

35 100%
30
80%
25
20 60%
15 40%
10
20%
5
0 0%
L K A F B C G R D

Enabled by team. Process variation

Frequency Cumulative Frequency

Pareto Chart
 Lean Six Sigma Methodology

Sweet fruits
Process
DFSS - DMADV
limitations

Bulk of fruits
Process characterization
and optimization

Low hanging fruits

Simple QC tools

Logic and common sense

Quick hits-Kaizen
The Six Sigma Approach

Conventional
Practical Approach
problem
( Trial & Error )

Statistical
problem

Statistical
solution

Practical
solution
The Formula of Six Sigma (Any phenomenon)

Y = f (X)
• Dependent • X1 . . . XN
• Output • Independent
• Effect • Input-Process
• Symptom • Cause
• Monitor • Problem
• Control
Would you control target or the shooter to get the Gold Medal?
How Six Sigma Relates to a Process ?
“Correct”
(In-Spec.)
X1

X2 Customer’s
Process Y
Needs & expectations
X3

Xn
Process Input Process Output Critical To Quality
Variables Variables (CTQ)

Manage the INPUTS and good OUTPUTS will follow

 THE FOCUS OF SIX SIGMA

Y = f(X)
Y  X1, X2, …….., Xn
 Dependent variable  Independent variable
 Output of the process  Input to the process
 Effect  Cause
 Symptom  Problem
 It is monitored  It is controlled

To get results should we focus on Y or X?

DMAIC Process
Preparing a Coffee

Sugar X1
water X2
Coffee bean X3
Y1 Strong
milk X4 Coffee
Temperature X5 PROCESS Sweet
Y2
Rate of heating X6 Coffee
Y3Cappuccino
Boiling time X7
The above example the shows the process in which in the right Y’s which are measurable customer requirements
or business requirement.

❖ The X’s on the left side are the variable inputs for the process. So the levels and the types of the X’s determines
the required Y. Y is found out or identified in the DEFINE phase.

❖ For each Y there will be many number of potential X’s. The potential X’s are identified and measured in
MEASURE phase.

❖ The vital critical X’s are identified from the potential X’s in the ANALYSE phase.

❖ After which it is improved to give a required Target Y.

The above example of preparation of a Tea gives a outline of the DMAIC process which will help you to
understand. So any change in any of the X’s can affect your Y.
 Classification of Problems
(How to select Problem solving BB projects)

Unknown 2 3

Cause :Known Cause :Unknown

Solution

Solution :Unknown Solution :Unknown

1 4
known

Cause :Known Cause :Unknown

Solution :Known Solution :Known
known Unknown

Cause
 Classification of Problems
(How to select Problem solving BB projects)

Unknown 3

Cause :Unknown
Solution

Solution :Unknown
4
known

Cause :Unknown
Solution :Known
known Unknown

Cause
 DMAIC Methodology

Define Measure Analyze Improve Control

Define
Analyze Data Ensure Solution is
CTQ & CTB Sustained
Project Selection Identify Root Causes
Team Formation
Project charter
Business case

Data Collection Prioritize root causes

Validate Measurement System Innovate pilot solutions
Validate the improvement
The Funnel Effect
Define Phase

Measure Phase

Analyze Phase

Improve Phase

Control Phase

Optimized Process
 Success- Tools

Customer Process A Process B Vendor

Define Measure Analyze Improve Control

Driven by
customer
needs
Process Map Analysis
LSL USL

Led by
Senior
Mgmt Upper/Lower
• ••••
••
•
specification
•
• •
• •
•
• •••••
••
limits
••
Regression

35 100%
30
80%
25
20 60%
15 40%
10
20%
5
0 0%
L K A F B C G R D

Enabled by team. Process variation

Frequency Cumulative Frequency

Pareto Chart
SCIENTISTS WHO CONTRIBUTED TO SIX SIGMA
What is Quality ?
56 Which car is a quality car?

TATA NANO MERCEDES BENZ

Which one will you take home ?
 T-Shirt Question

POND A POND B
Average depth = 4 feet Average depth = 4 feet
5.5 Feet

6 meters
5 meters

2
4 2
4 4 3
5 5 4
4
7
 POND A POND B
2 2
x x-xbar (x-xbar) x x-xbar (x-xbar)
2 2-4 = -2 4 2 2-4 = -2 4
4 4-4 = 0 0 3 3-4 = -1 1
4 4-4 = 0 0 4 4-4 = 0 0
5 5-4 = 1 1 7 7-4 = 3 9
5 5-4 = 1 1 4 4-4 = 0 0
4 4-4 =0 0

Sum 24 6 20 14
Average (x bar) 4 4

2
= =1 2
= = 2.8 1.6
X X- X bar (X- X bar)2

13 13 – 12 = 1 1
10 10 – 12 = -2 4
8 8 – 12 = -4 16
15 15 – 12 = 3 9
12 12 – 12 = 0 0
14 14 – 12 = 2 4

34/6 = 5.66
= 2.37
What is sigma?

Greek letter, referring to Standard Deviation

(The best measure of variation)
 What is a Process?

A collection of activities that takes one or more inputs and

transforms them into outputs that are of value to the customer

Inputs
Outputs

Supplier(s) Customer(s)
“The Process”
 The Process
Controllable Factors
Employee time
Energy
Machines
Inputs
Money
Quantity,
material,
Outputs
parts, Characteristics

Climate
Holidays

Non Controllable Factors

 The Process
Outputs
Controllable Factors
Target
Employee time
Energy

3.75 ml
Machines
Inputs
Money
Quantity,
material,
parts, 0.06 ml

Climate LSL:3.72 USL:3.78

Holidays

Non Controllable Factors

 The Process
Outputs
Controllable Factors
Target
Employee time
Energy

3.75 ml
Machines
Inputs
Money
Quantity,
material,
parts, 0.06 ml

Climate LSL:3.72 USL:3.78

Holidays

Non Controllable Factors

 The Process
Outputs
Controllable Factors
Target
Employee time
Energy

3.75 ml
Machines
Inputs
Money
Quantity,
material,
parts, 0.06 ml

Climate LSL:3.72 USL:3.78

Holidays

Non Controllable Factors

 The Process
Outputs
Controllable Factors
Target
Employee time
Energy

3.75 ml
Machines
Inputs
Money
Quantity,
material,
parts, 0.06 ml

Climate LSL:3.72 USL:3.78

Holidays

Non Controllable Factors

Office In timing exercise
Anatomy of Normal curve

• Mean
• Sigma (σ) or Standard deviation
• Why “6” Sigma ? Why not 4 or 7?
 The Process
Outputs
Controllable Factors
Target
Employee time
Energy

3.75 ml
Machines
Inputs
Money
Quantity,
material,
parts, 0.03 ml

Climate LSL:3.72 USL:3.78

Holidays

Non Controllable Factors

 The Process
Outputs
Controllable Factors
Target
Employee time (LESS,HIGH)
Inputs
energy (LOW,MEDIUM,HIGH)

3.75 ml
Machines ( M1,M2)
Money (LOW,HIGH)

Data (TABULATED,NONTABULATED)
Material (TYPE1,TYPE2),
0.03 ml
Parts( PARTA, PARTB),

LSL:3.72 USL:3.78
Climate (DEPENDED ON SEASON)
Holidays (DIFFERS)
Breakdown (MAINTANENCE)

Non Controllable Factors

 The Process
Outputs
Controllable Factors
Employee time (LESS,HIGH) Target
energy (LOW,MEDIUM,HIGH)

3.75 ml
Machines ( M1,M2)
Money (LOW,HIGH)
inputs
Data (TABULATED,NONTABULATED)
Material (TYPE1,TYPE2),
Parts( PARTA, PARTB), 0.03 ml

Climate (DEPENDED ON SEASON) LSL:3.72 USL:3.78

Holidays (DIFFERS)
Breakdown (RESOURSE ON
MAINTANENCE)

Non Controllable Factors

 The Process

Outputs Outputs Outputs

Target Target Target

0.03 ml 0.03 ml 0.03 ml

LSL:3.72 USL:3.78 LSL:3.72 USL:3.78 LSL:3.72 USL:3.78

Sigma=3.25 Sigma=3.03 Sigma=2.56

A B C
 The Process

Outputs Outputs Outputs

Target Target Target

0.03 ml 0.03 ml 0.03 ml

Sigma=3.25 Sigma=3.03 Sigma=2.56

LSL
The Secret is  (Sigma) USL

 (sigma) is a measure of variability / Variation

Achieve VICTORY over Variation by Improving Processes

To achieve Six sigma, a process must not produce more
than 3.4 defects per million opportunities.

Six sigma concept : 99.99966% probability that 3.4

Defects Per Million Opportunities (DPMO) can occur.
Define phase
 Objective
❖ Identify the problem
❖ Identify project CTQs
❖ Develop team charter
❖ Define process map

Tools
❖ VOC-CTQ
❖ Kano model
“If I had one hour to save the world, I would spend
fifty five minutes defining the problem and only five
minutes finding the solution.”

Einstein
 Project Identification Methods

VOC Analysis
(problems identified on the basis
of Customer’s Voice)

List Down the Potential

Problems /Projects of
VOB Analysis Identification of Organization on the
(problems identified on the basis
of Business problems) CTQs basis of the above
analysis.

COPQ Analysis
(problems identified on the basis of
Cost of Poor Quality i .e. Process
Defects ) •VOC → Voice of Customer
•VOB → Voice of Business
•COPQ → Cost of Poor Quality
GEMS EXPERIMENT
 # of defects x 106
DPMO =
( # of Units) x ( # of opportunities)
 Voice of the Customer
❖ “Voice of Customer” is the term used to describe the stated and unstated needs or requirements
of the customer for our Product/Service or Process.

❖ The voice of the customer (VOC) is the starting point of any project and data collection plan.

The voice of the customer includes:

❖ Expectation

❖ Requirements

❖ Opinions
Gems Car
Tools for gathering VOC

Solicited Data Unsolicited Data

❖Interviews ❖Complaints
❖Focus groups ❖Field reports
❖Surveys ❖Benchmarking
❖Informal customer discussions ❖Observations
❖Market research ❖Etc.,
Kano Model
by Noriaki Kano

A tool to know about the customer

perception towards a product or
service
 Origins of the Kano Model

 Professor Noriaki Kano

– Professor at Tokyo Rika University

– Kano Model Theory - 1984

– Received Deming Prize for Individuals in 1997

 Why Kano Model

• To understand the customer better than they

understand themselves.
• Prioritize our development efforts.
• Helps to acquire the VOC
• Analyzing competitive products
 Kano's "3 Arrow Diagram"
106

Satisfied
Feeling “Competitive”
the more the
better

Physically
Fulfilled
(Need is not met) Condition
(Need is met)

Unstated, “Taken
Expected
Quality for
Dissatisfied granted”
Feeling
 Kano's "3 Arrow Diagram"
107

Satisfied
“Surprise & Feeling “Competitive
Delighters” ”
the more the
Exciting
Quality better

Physically
Fulfilled
(Need is not met) Condition
(Need is met)

Unstated, “Taken
Expected
Quality for
Dissatisfied
Feeling
granted”

Kano Model.mp4
 Kano's "3 Arrow Diagram"
108

Satisfied
Feeling
What was
exciting
yesterday
becomes
expected
tomorrow

Physically
Fulfilled
(Need is not met) Condition
(Need is met)

Unstated,
Expected
Quality
Dissatisfied
Feeling
Exercise
 IDEA
KANO Model Ericsson
 Critical To Quality (CTQ)

Critical to quality (CTQ) is the key measurable characteristic of a product or process whose
performance standards must be met in order to satisfy the customer.

While determining the CTQ it is absolutely critical to:

➢ Understand VOC

➢ Interpret the VOC correctly while transforming it to a CTQ

➢ Translate the VOC to CTQ from the customer’s perspective

Turning Words into Numbers and Numbers
into Data and data has to be converted into
decisions
Elements of a CTQ – Example
 Key measurable quality characteristics of product or a service.

➢ Performance

➢ Reliability

➢ Durability

➢ Serviceability

➢ Aesthetics

➢ Features

➢ Perceived Quality

➢ Conformance to Standards
 Product/ Service
Metric
Need Characteristics

Not sure what clean means

Could mean no waste
Room is clean materials in dustbin
Could mean clean toilets

# Rooms with Hi Speed

Room has Hi speed
Internet
Internet # Rooms in Hotel
Good Hotel Room
Hotel has Fitness # Hours Fitness Center
Center available per day

Room has many TV # of functioning channels per

channels day
Identify the CTQ
VOC/VOB CTQ

“I want the pizza delivered hot”

“Last year, we spent a lot of money to fix

products in warranty”

“I had to wait for so long to get an operator

to answer my query”

“We aren’t able to process transactions

within the time promised to the customer”

“Loan application forms submitted by loan

officers have too many errors”
 118 VOC CTQ,VOB,CTB
VOB to CTB
VOB Key Issue CTB's (Critical to Business / Efficiency)
(Voice of the management)

Productivity =(Total production receive +Delivery)/Total

Man-Hr involved in receiving & delivery (Day wise
1) Distribution Productivity Improvement Low Distribution productivity
average)
Productivity = KG/Man-Hr(Day Wise Average)

Receiving & Shifting Productivity = (Total Production

Low Receiving & Shiftingn
1a) Receiving & Shifting Productivity Receive +Shifting) KG / Total ManHr involved in reveving
productivity
and Shifting

Productivity = (Total Delivery) KG / Total ManHr

1b) Delivery Productivity Low Delivery productivity
involved in delivey.

Delivery Capability = Delivery in peak 5 days

(Aveg)/Corresponding Man-Hr. in total
Delivery capability Lower productivity
Delivery Capability = KG/Man Hr (Top 5 peak Days
average of every month)
Voice of Business

❑Expression of business needs and wants

❑Reflected in Vision, Mission and Objectives of the

Organization
PROJECT CHARTER
Finalize Project Charter

➢ A project charter is a written document that works as an

agreement between management and the team about what
is expected from the project.

➢ The Charter:
o Clarifies what is expected of the team.
o Keeps the team focused.
o Keeps the team aligned with organizational priorities.
O Transfers the project from the champion(s) to the
project team.
o Clearly describes the problem
o Establishes a timeline for the project
The Project Charter does NOT solve the
problem. It is a living document, that
will change over time…..
Key elements in a charter
Business Case:
➢
• Explanation of why to do the project

➢
Problem and Goal Statements:
• Description of the problem/opportunity or objective in clear,
concise, measurable terms

➢ Milestones:
• Key steps and dates to achieve goal

➢ Roles:
• People, expectations, responsibilities
Business case Problem Statement

Goal Statement Scope & Out off scope

Benefits Team members

Time line
 Business Case
 Why is it important to do the project.?
 The reasons of undertaking the project.
 The benefits gained from undertaking the
project now.
 The consequences of not doing the project.
 The factors that would conclude that it fits the
business goals
 The Goal Statement
The Goal Statement then defines the
team’s improvement objective Specific
▪Definition of the improvement the team
is seeking to accomplish?
Measurable
▪Starts with a verb (reduce, eliminate,
control, increase)
▪Tends to start broadly - eventually
Attainable
should include measurable target and
completion date
▪Must not presume cause, or prescribe
Relevant
solution!

Time Bound
 SMART GOAL - Example
➢ Goal Statement- To reduce the percentage of late payments (what) from
30% to 15% (magnitude) In the next 3 months (when) in the North India
Region (where), and realize savings of 500KUSD/ year (magnitude).

What is missing in these goal statements?

a) Reduce the cost of rework in the company

within 4 months. a) ____________________
Improve order to ship time by 50%
b) b) ____________________
c) Reduce revenue loss due to unauthorized
discounts by 80%. c) ____________________
d) Decrease time spent in admin activities by
25%
d) ____________________
e) Reduce errors in customer application forms e) ____________________
to zero.
f) Increase productivity by 30% f) ____________________
 Problem statement
Problem statement : a short description of the use to be addressed. It should not
contain:
❖ A solution

❖ The root cause

❖ Blame towards a department or individual

A problem statement answers the following:

❖ What is the problem or issue?

❖ What is the measure you are trying to impact?

 5.
4.
3.
2.
1.
No. #

Month

Define

Control
Analyze

Improve
Measure
Phase

Plan
Plan
Plan
Plan
Plan

Actual
Actual
Actual
Actual
Actual

Week 7

Week 8
July

Week 9

Week 10

Week 11
August

Week 12

Week 13

Week 14
Project Schedule

Week 15

Week 16
September

Week 17

Week 18

Week 19

Week 20
October

Week 21

Week 22

Week 23

Week 24

Week 25
November

Week 26

Week 27

Week 28

Week 29
December

Week 30

Week 31
ot

Status
SIPOC
 Process
AN ACTIVITY USING RESOURCES, AND MANAGED IN ORDER TO ENABLE THE

TRANSFORMATION OF INPUTS INTO OUTPUTS, CAN BE CONSIDERED AS A PROCESS. OFTEN,

THE OUTPUT FROM ONE PROCESS DIRECTLY FORMS THE INPUT TO THE NEXT PROCESS
 Process Maps
 The purpose of Process Maps is to:
 Identify the complexity of the process
 Communicate the focus of problem solving

 Process Maps are living documents and must be changed as the process is changed
 They represent what is currently happening, not what you think is happening.
 They should be created by the people who are closest to the process

Process Map

Start Step A Step B Step C Step D Finish

135

The SIPOC Model

Inputs Process Outputs

Suppliers Customers

Steps

Inform Loop
• Suppliers – The internal and external providers of resources, materials, knowledge, and

services that the process requires.

• Inputs – Materials, resources, Money, data and people required to execute your process.

• Process – The step or sequence of steps that is being improved.

• Outputs – The measurable or assessable end products or services produced by the process.

• Customers – People who receive the final products and the outputs of each process step.
 Advantages of the Process View
 View of activities in an organization as cross-functional flows, focusing on the
value-added activities for the customer.

 Applicable to any type of organization: production, service

 Flows can be applied at all levels of an organization.

 Allows definition of clear performance metrics that reflect the value to the
customers.

 Managing the processes, rather than individual activities, allows end-to end

process improvement.
 SIPOC Requirements
❖ Clearly define the start and stop points

❖ Establish key process metrics

❖ Identify the components of a process and their owners

❖ Identify all the suppliers and their inputs to a process

❖ Identify all the customers and the output they receive

❖ Establish customer and all stakeholder requirements and how they

measure success
 Business Processes in Operations
The volume production of goods or services in a sequence of activities performed by a
set of specialized resources.
 SIPOC- Account Creation
Suppliers Inputs Process Outputs Customers
(Anyone who receives a
(Providers of the required (Resources required by the (Top level description of the deliverable from the
resources) process) activity) (Deliverables from the process) process)
Bank Application Form Filled In application form with Bank
Applicant Adddress Proof needed prrof
Start
ID proof
Photo

Application form
Fillup

Applicant Filled in form Application form Reviewed application form Bank

Review Accepted / Rejected

Bank Accepted Application form Scanning Scanned photo, signature file Bank

Bank Accepted Application form Reviewed Ledger Bank

Scanned Copy Ledger Entry

Bank Ledger entry & approval Account number Bank

Account Creation

Bank Account details pass Book issue Printed Passbook with Entry Applicant
Empty Passbook

E n d
SIPOC of Prescribing Medicine
 Visual SIPOC

SIPOC help to scope the

project.

SIPOC helps to identify the

pain area of the problem.
 Why use SIPOC?

 High-level picture of value-added steps in a process.

 Describes the process to bring a common understanding to the team of the

project scope and what is involved in each part of the process.

 Supports initial discussion of customer expectations and what in the

process influences the Critical-to-Quality characteristics.

 Every organization has hundreds, if not
thousands of work processes. To understand the
organization, you must understand its processes !!

Before you can change a process, you need to

describe and characterize it !!!

SIPOC is the key

 Define Phase Index
151
Business Case
Benefit Potentials (BP): Cost (Efforts):
Annualized Exp. Benefit in p- Original BP Annualized Exp. Cost in p-start Original Cost
Comments:
Benefit start year Cost year Est.
One-Off Costs:
Cost Reduction Objective: Tk. Restructuring costs Tk.
External Costs Tk.
Revenue Enhancement Objective: Tk. Total: Tk. 0 0 0

Net Working Capital Objective: Tk. CAPEX Spending: Request-#

Capex: Tk.

Total Benefits: Tk. 0.0 0.0 0 Total Cash Req. Tk. 0 0 0

Key Performance Indicators (KPI):

Performance
Project Target
No. KPI Unit Baseline D in % Agreed by Controlling Comment
Period Target
(BSL)

Distribution Productivity = Kg/Man-

1 31-Dec-18 Kg / Man-Hour 924 1035 12.0%
Hour

Receiving & Shifting Productivity =

1a) 31-Dec-18 Kg / Man-Hour 784 878 12.0%
Kg/ManHour

1b) Delivery productivity = Kg/Man-Hour 31-Dec-18 Kg / Man-Hour 872 977 12.0%

Distribution Capability = Kg/Man-

2 31-Dec-18 Kg / Man-Hour 1156 1295 12.0%
Hour

3.

4.

5.

No. Assumptions for/Way of Benefit Calculation (e.g. energy prices, fix cost per ton, etc.):

1. Productivity baseline is calculated by using monthly average productivity from September 2017 to July 2018, Productivity = (Total Production Receive +Delivery) / Total ManHr involved in reveving and delivery
Productivity baseline is calculated by using monthly average productivity from September 2018 to 20 th October 2018, Productivity = (Total Production Receive +Shifting) / Total ManHr involved in reveving and
1a)
Shifting
1b) Delivery Productivity baseline is calculated by using monthly average productivity from September 2018 to 20 th October 2018, Productivity = (Total Delivery) / Total ManHr involved in delivey.

2. Distribution capability baseline is calculated by using peak 5 days average productivity (Kg/Manhr) of each month from September 2017 to July 2018

3
Baseline calculation for KPI # 1 : Delivery and Receiving =3,45,576 kg , Total Man Hr=374 Man Hr (Average of total manhours including OT)
4.
Target Calculation for distribution productivity : Man Hr= 313 , Delivery and Receiving =323955 kg(1035 X 313)
5.
Target Calculation for distribution capability : Man Hr= 313 , Delivery and Receiving =4055335 kg(1295 X 313)
6
Target Calculation for receiving & shifting productivity : Man Hr= 150 , Receiving & Shifting =137846 kg(878 X 157)

Submitted by Project Leader: Authorized by Finance Controller:

(original signature on print out) Signature: Signature:
(original signature on print out)

Roles &
Voice of Business Case Develop the Responsibilitie
Business project team s

Project Charter Project

SIPOC
Schedule
EXCELLENCE IN ALL AREAS IS A NECESSARY AND NOT LUXURY
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senthil@iq6sigma.com
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