Phase1 - Lean Six Sigma Green Belt - Training Programme

Lean Six Sigma Green
Belt training
programme
Phase 1
©2019 Grant Thornton India LLP. All rights reserved.

Lean Six Sigma Green Belt Training Flowchart
Define – Day 1
• VOC to CTQ • SIPOC / COPIS

• Affinity Diagram • AS-IS Sub-process mapping
• Kano Model (Group Exercise • Observations
on the identified CTQ) • Affirmations (Group Exercise)
Lean Six Sigma Green Belt training programme – Phase 1
Concept VOC - Project Process

Building CTQ Charter Mapping
• Six Sigma and Lean Overview • Business Case

• History and Applicability of LSS • Problem Statement (Do’s and Don'ts)
• Juran and Deming Contribution • Project Scope
• Definition of GB, BB, MBB, • Milestone
Champion and Sponsor • Roles and Responsibilities (Group Exercise)
• DMAIC vs. DFSS
2
Measure – Day 2
• Types of Variation (Common cause

and Special cause variation)
• Histogram
• Boxplot
• Introduction to • Demonstration of graphical
Minitab tools on Minitab
MSA +
Introductio Understan
Understan Data Checking
n to ding
ding Data Collection Capability
Minitab Variation
Plan
• Types of Data • Gage R & R % Study • Six Sigma Calculation

• Data Distribution Variance (DPMO
• Sampling • Attribute Agreement • Cp, Cpk
Techniques Analysis (only overview) • Six Sigma Interpretation
• Demonstration of MSA • Yield
on Minitab with example • Exercise to calculate DPMO,
• Data Collection Plan Cp, Cpk
3
Lean and Analyse – Day 3
• Introduction to Lean
• VSM • Introduction to correlation and
• Principles of Lean simple linear regression
• TIMHWOOD • Demonstration on Minitab
Correlation
Casual Lean Hypothesis and
Analysis Principles Testing Regression
• Fishbone • Introduction to Hypothesis

• 5 Why’s • Test of Means (1 sample t-test, 2 sample t-
• Control Impact Matrix test, ANOVA)
• Pareto Chart / Analysis (Group • Test of Proportions ( 1 proportion test, 2
Exercise) proportion test, Chi- Square test)
• Demonstration on Minitab
4
Improve – Day 4
• Payoff Matrix
• Criteria Based • Kanban
Matrix • Kaizen
• Nominal Group • 5S
Technique • Poka Yoke
Idea Solution Risk Solution Pilot and

Generation Selection Proofing with Lean CBA
• TRIZ • FMEA with example • Pilot

• Brainstorming Implementation
• Channelling, Plan
Analogy, Anti- • Cost Benefit
solution and Analysis (Pre
Brain writing and Post)
5
Control – Day 4
• Introduction to Control
Charts
• Types of Control Charts
• Demonstration on
Minitab with Examples
SPC Project
Control Closure
• Why Control? • Process Management System

• Control Response Document • Control Response Plan
6
7 Lean Six Sigma Green Belt training programme – Phase 1
Quality Gurus
Quality Gurus
Quality Gurus
Dr. Walter Shewhart (1891-1967)

• Known for framing the problems of failures in terms of “assignable causes” and “chance cause” variation.
• Known for the introduction of the SPC – control charts as a tool for distinguishing between assignable
and chance cause variation.
• Invented control charts which are widely used across industries to monitor processes and to determine
when there are changes in a process.
• Known for the introduction of the continuous improvement cycle – Plan –Do –Check –Act (PDCA).
9
Quality Gurus
Dr. W Edward Deming (1900-1993)

• Made a significant contribution to Japan’s reputation for innovative, high quality products and for its
economic power.
• Championed the work of Walter Shewhart including statistical process control, operational definitions and
“Shewhart Cycle" which had evolved into PDSA (Plan-Do- Study-Act).
Dr. Joseph M Juran (1904-2008)

• Made a significant contribution to Japan’s reputation for innovative, high quality products and for its
economic power.
• Known for Juran Trilogy – quality planning, quality control and quality improvement.
• First to apply the work of Vilfredo Pareto to quality issues - “vital few and trivial many”.
10
Quality Gurus
Dr. Kaoru Ishikawa (1915-1989)

• Considered as a key figure in the development of quality initiatives in Japan, particularly the quality circle.
• Best known for the Ishikawa or fishbone or cause and effect diagram often used in the industrial
processes analysis.
• Translated, integrated and expanded the management concepts of W. Edwards Deming and Joseph M.
Juran into the Japanese system.
Philip B Crosby (1928-2001)

Philip Crosby is known for his four absolutes of quality management:
• Quality means conformance to requirements.
• Quality comes from prevention.
• Quality performance standard is zero defects.
• Quality measurement is the price of non-conformance.
11
Evolution of Six Sigma
What does Quality Mean?

Detecting and correcting Preventing defects in the first place

mistakes in the product or through manufacturing controls and
such that it meets product design such that it meets
compliance standards. performance standards.
12
Evolution of Six Sigma
“
“
The real problem at Motorola • Late 1970s - Motorola started experimenting with
problem solving through statistical analysis.
is that our quality stinks
• Motorola started Six Sigma approach to achieve it’s one
……1979, Art Sundry of the top ten corporate goal of improving the quality by
ten times within five years in 1981.
• The term “Six Sigma” was coined by Bill Smith, an
engineer with Motorola.
“
A product found defective • 1987 - Motorola officially launched it’s Six Sigma
program as follows:
and corrected during
- Improve quality 10 times by 1989.
manufacturing had high
- Improve quality 100 times by 1991.
probability of failing during
- Achieve six sigma (3.4 DPMO) performance by 1992.
early use by customer
- Motorola won the first Malcolm Baldridge National
……1985, Bill Smith Quality Award in 1988.
13
Origin of Six Sigma
Beginning Focus on how

Improve the Lower Lower the product was
of a new
quality. production cost. production time. designed and
era at made.
Motorola..
Motorola gained a return of

USD 800 million in two years
14
Growth of Six Sigma - GE
Scope of six sigma

1998/99 - Green 2002/03 - Green Belt initiative has
Belt exam certification became changed from

Jack Welch
certification became the criteria for ‘manufacturing’ to
launched Six Sigma
the criteria for promotion to the entire business
at GE in Jan,1996.
management management roles – service, product
promotions at GE. at GE. design and
innovation.
15
Focus of Six Sigma
Reduce Variation Reduce Defects Delighting Customer

Reduce Cost Reduce Cycle Time

16
Sigma Levels and PPM
Sigma Level Part per Million (PPM)
2 3,08,000
3 66,800
4 6,210
5 230
Mumbai's Dabbawalla are at

more than Six Sigma level 6 3.4
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Six Sigma - Its significance
99% Good (2.8 Sigma) 99.99967% Good (6 Sigma)
20,000 lost articles of Unsafe drinking water Seven articles One unsafe minute
mail/ hour for almost 15 minutes lost per hour every seven months
each day
5,000 incorrect Two short or long 1.7 incorrect One short or long
surgical operations per landings at most major operations per week landing every five years
week airports each day
200,000 wrong drug No electricity for almost 68 wrong prescriptions One hour without
prescriptions each year seven hours each month per year electricity every 34 years
18
What is Six Sigma?
Metric Benchmark Tool Commitment

• A metric that • A benchmark for • A practical application • A commitment to

demonstrates product and process of statistical ‘tools’ to customers to offer the
quality levels at capability on a help define, measure, highest quality,
quality basis. analyze, improve, and reduced cost products.
99.99967 per cent
control the processes.
performance for
processes.
19
Multiple meanings of Sigma
Standard Process Management

deviation capability philosophy
• The Greek symbol • A statistical measure • View processes/

‘sigma’ which means of a process’s ability measures completely
standard deviation. to meet customer from a customer point of
requirements (CTQs). view.
• Is a measure of • Continual improvement.
variation. • Process Sigma= 6s
• Integration of quality and
equates to
daily work.
• 3.4 defects per million • Satisfying customer
opportunities. needs profitably.
20
Six Sigma
Organization
Six Sigma Team
Apex Council
Champion or Sponsor
Process owner
Master Black Belt
Black Belt
Green Belt
Team Members
22
Apex Council
Top Management
• Accountable for Six Sigma business results.
• Develop a strong case for Six Sigma.
• Plan and actively participate in implementation.
• Create a vision and market “change”; Become a

powerful advocate.
• Set clear (SMART) objectives.
• Hold itself and others accountable.
• Demand specific measures of results.
• Communicate results (including setbacks).
• Helping to quantify the impact of Six Sigma
efforts on bottom line.
23
Champion or Sponsor
Senior Manager
• Oversees a Six Sigma project.
• Is accountable to the Apex Council.
• Sets rationale and goal for project.
• Be open to changes in project definitions.

• Find resources (time, support, money) for team.
• Help the team overcome roadblocks; smoothen
implementation.
• Focus on data-driven management.
• Identify and recruit other key players.
• Assist in identifying and developing training
materials.
24
Process Owner
Functional Head
• Implements solutions through Black Belts and
project teams.
• Provide resources and helps resolve conflicts.

• Accountable to the Apex Council.
• Owns end-to-end process.
• Sets goals for projects.
• Project review: timeline and project is on track.
• Responsible for holding the gains.

25
Master Black Belt
Six Sigma Coach

• Advise and mentor Black Belts and teams. • Gather and analyze data on team activities.
• Communicate with champions and apex council. • Plan and execute training.
• Establish and adhere to a schedule for projects. • Help teams promote and celebrate successes.
• Deal with resistance to Six Sigma. • Document overall progress of Six Sigma.
• Resolve team conflicts.
• Estimate, measure and validate savings.

26
Black Belt
Facilitator
• Six Sigma implementation experts with the ability to
develop, coach, and lead multiple cross-functional
process improvement teams.
• Use tools to quickly and efficiently drive improvement.
• Facilitate to keep team focused on the project objective.

• Ensure that the Six Sigma methods are followed.
• Help teams learn and understand Six Sigma tools and
techniques through regular project reviews.
• Responsible for the ultimate success of the project.
• Trains and develops Green Belts.
• Spread Six Sigma awareness throughout the
organization.
27
Green Belt
Project Team Leaders

• Lead and Execute Six Sigma as part of their daily jobs.
• Keep the project team focused on the project goal.
• Extract equal participation from all team members.
Counsel non participating team members and motivate
them to participate.
• Ensure discipline of Team Meetings is followed and that
every meeting starts with an Agenda. Ensure MOM is
distributed the same day.
• Regularly follow up with team members to ensure that
assigned tasks are completed on time.
• Manage conflicts and seek intervention of Process
Owner / Champion if necessary.
• Dual responsibility of being process experts as well as
trained resource on Six Sigma methods and quality tools.
28
Team Members
Process Experts
• Team members are vital for success.
• Good knowledge of product, process, customer.

• Willing to work in teams.
• Time to work on projects.
• Active in Data collection.
• Responsible for improvement.
• High Participation.
29
Typical Project Life Cycle and Effort
Sponsor/Champion Black Belt/Green Beltand Six Sigma Team Functional Team and Process Owner
Level of Effort
Define Project D M A I C Integrate into DailyWork

30
DMAIC vs DMADV
DMAIC Vs. DMADV
Define
project
scope
 
Does
Process
exist?
Measure Measure
DMADV Analyze Analyze

DMAIC
(DFSS) Design Improve
Verify Control
32
DMAIC methodology
DMADV methodology
DMAIC approach
What is the
frequency of defects?
Measure
2
What are customer Why, when and where do
expectations of the process?
Define 1 3 Analyze
defects occur?
5 4
How can we make the Control Improve How can we fix the process?
process stay fixed?
35
Define phase
Define Phase Roadmap
Collect the VOC Determine the CTQ

1 2
Define
Develop the Project Charter 4 3 Map the High Level Process

37
Learning outcomes
At the end of the DEFINE phase you will be able to:
Create the Project Charter

Translate the VOC into CTQ
Create a Macro Map
Identify the Problem

38
How do you know that there is a problem?
01 02 03 04
The machine was not
I am on hold for a long
working, and I have to wait long to
period before I get I am not happy with the
technician came after receive the goods that
connected to the right Quality of the product.
two hours of raising the I ordered.
executive.
issue.
05 06 07 08
There are many We had to pay a The cost of production
There is always a
rejections in the huge penalty for not is too high; we need to
delay in fixing my
product lot you have being complied to the do something to make
product.
sent to us. statutory requirement. it cost effective.
39
Who is your customer?
A customer
is someone
who:
Uses your product or service A customer could be:
• External: Individuals or organizations
outside of your business who are usually
associated with paying money for your
Decides to buy your product or service

products and services.
• Internal: Colleagues who receive products,
services, support or information from your
Pays for your product or service process – i.e., Engineering, Manufacturing,
Quality, Marketing.
• Regulatory: Any government agency that
has standards the process or product must
Gets impacted by your
conform to – i.e., OSHA, EPA, FDA etc.
product or service
40
Who is your customer?
Define products or services Are your customers – External

Identify related process.
provided to customer. and (or) Internal ?
PROCESS DELIVERABLE CUSTOMER

Internal
Hiring Technical Person placed in the
Director / Manager
Personnel position
Operations Hiring External
Accounts Payable Payment of invoices Suppliers
Internal
Correct order delivered Customer who placed
Order Delivery
to the correct person order
External
Supplychain Finance
Collection of Customer who
Analyzed reports
information & analysis outsourced the work
41
What does your customer need?
Before you
How does
approach to a the
business customer
problem, ask view my
these questions: process?
What does the What does

customer look at the customer
to measure my The approach towards any problem must be
need from me
performance? to fulfill his
“Outside-In”, that is view the problem from
process? customer’s perspective.
42
Performance Needs vs. Business Requirements
Define how the process must perform Define the operating parameters around the process
These primarily comes from our internal/external customers. These primarily come from the value chain partners.
Examples: Lead time (e.g., time to get equipment), Defect Examples: Cost reduction, capital limitations, space limitations,
free (e.g., injury free, pain free) Low cost etc. development time limitations, supplier capability etc.
Don’t be distracted or wowed by ‘features’ (e.g., bells and

whistles) asked for by the Customers. Features are often,
though not always, just solutions to Performance Needs
(and not business requirements?).
Validate the need for the feature or, better yet, gather the
base need.
Avoid solutions until the Improve phase.

43
Performance Need Categories
Service and Corporate

Quality Cost Speed
Safety Responsibility
Product or Service Process Cost Lead Times, Environment, Ethical Business

Features, Efficiency, Cost of Delivery Times, Health and Safety Conduct, Business
Characteristics service, FTEs Turnaround Times, Policy, Service Risk Management,
Relating to the involved, Purchase Setup Times, Requirements, Environment,
Function of the Price, Repair Delays, Up Time, After-Purchase Health and Safety
Product or Service, Costs, Equipment Reliability, Parts Policy, Code of
Reliability, Maintenance Availability, Availability, Conduct.
Availability, Costs. (Derived equally Service,
Effectiveness, (Derived Primarily from the Warranties,
Recovery, from the Customer or the Maintainability,
Customer Returns, Business – VOB). Business – Customer-
Defects, Rework or VOC/VOB). Required
Scrap (Derived Maintenance,
Primarily from the Product Liability,
Customer – VOC). Product/Service
Safety, Recordable
Injuries, Lost Time.
44
Translating VOC to CTQ
VOC C T Qs
Identify customer Gather verbatim VOC Translate to needs statement

KEY STEPS segments that need to and determine service and develop a CTQ - project
be targeted quality issue Y metric output characteristic
CTQs: Critical To Quality Characteristics

A specific measurable attribute of the output that is a key requirement for customer satisfaction
45
Gather Voice Of Customer (VOC)
Key Considerations In
Collecting Customer Data:
What What budget Ensure

contact/relation is available? customer

ship do you expectations
have with the are aligned with
customer? How much our intentions/
Collector’s
certainty to do actions.
bias may
affect what is you need to
heard. What are your move forward
time constraints? with the project?
46
Identify Customer
Identify customer
Now? Gather verbatim VOC • Review existing VOC data
segments that need to and determine service • Decide on what to collect
be targeted quality issue
• Use appropriate tools to gather VOC
- Surveys
- Interviews
What? - Be a customer
- Focus group
• List your - Customer observation
customers
- Listening posts
• Define customer
segments - Competitive comparison
• Narrow the list of • Collect data
customers
• Gather VOC
47
Steps for Gathering VOC
• The first step in gathering the VOC, is The Greatest Value Can Come From a
customer segmentation. Small Portion of Your Customer Base
– All customers are not created
equal, and do not create equal value
– Avoid “squeaky wheel” syndrome
• If customers aren’t segmented, it may prove

impossible to get a single “voice,” and the
multiple voices may lead in opposite
directions.
• Customers should be segmented or
grouped according to their similar need for
products and services
• Identify and focus on the most important
segments
Total Customers Total Value
48
Customer Segmentation
Price and Service
800.00%
Economic Descriptive Attitudinal
• Revenue • Geographic • Price 600.00%
• Frequency • Demographic • Value

400.00%
• Size of Customer • Product feature • Service
• Cost • Industry 200.00%
• Strategic goals
0.00%
01 02 03 # of Customers
Price Service
49
Select Sources of Customer Information
• Existing Company Information i.e. product returns, market share, etc.

Internal and • Industry Experts
01 External Data • Secondary Data
• Competitors
• Complaints / feedbacks /
Sources of • Client SPOC
Listening Social media handles
Customer 02 Post • Customer Service
•
•
Billing & collection
Accounts Receivable
Information Representatives
• Interviews
Research • Surveys – global survey/ tax department survey etc.
03 Methods • Focus Groups – dedicated department/ functions
• Observations from the business around
50
Pros and Cons of each method of data collection:
Tool Cost Benefits Disadvantages
• Gathers a lot of data from many sources

• An individual must decide to leave feedback, skewing results to people
Feedback Low • Can be geared towards numeric data for
who feel strongly one way or the other
easier analysis
Survey via • Can randomly select, which allows you to • Requires a lot of labor hours
phone High draw conclusions for the entire population • Customers may be annoyed by unwanted phone calls
Survey via • Can randomly select, which allows you to

Medium • The customers must send it back for it to count. Because many people
draw conclusions for the entire population
mai won’t do so, you have to send more surveys to get a statistical sampling.
• Lower cost alternative to phone or in-person survey
Social • Ongoing ability to seek feedback • Requires an establish social media following.
Low • Ability to ask question on the fly • Relies on followers and fans, which means you are asking for feedback
Media
• Possibly the least expensive option for VOC from people who already favor your brand in some way
Focus • Limits data pool to local customers or those willing to travel.

High • Let's moderators seek more in-dept • Can’t use data to make assumptions about the general population
group in
answers or feedback immediately • Customers may be less inclined to be honest when face to face with
person surveyors
Focus • Let's moderators seek more in-dept

• Can’t use data to make assumptions about general
group Low answers or feedback immediately
population.
online • Doesn’t require travel
51
Example
While we reviewed the customer feedback forms of few customers who availed our services of relocations, following were the VOCs.
Which VOC should we initiate the project for?
The packing material was not

The delivery of my household items The goods received at the
adequate, and many items
was not as per the schedule destination were damaged
were not packed safely
people were not having The supervisor was rude and

I was not able to connect with
knowledge and were not able was not willing to adjust with
the customer service
to handle my stuffs properly additional request
The quality of material used

I had to wait too long on call I was charged more than the
was not good and it tore
before getting connected estimates provided to me
multiple times while packing
52
Segregate and Prioritize VOCs
How do I analyze
these countless
VOCs?
Affinity Diagram (> than 10 VOC) Kano Model (up to 10 VOC)

53
Affinity Diagram
Record each Without talking For each Draw the final

VOC on a post it sort, the ideas grouping create affinity diagram
note in bold simultaneously as summary or connecting all
letters. a team into 5 –10 header cards finalized header
related groupings. using cards with their
consensuses. grouping.
54
Bucketing the VOC’s
VOC 6 VOC 8 VOC 10
VOC 7 VOC 5 VOC 9
VOC 12 VOC 11 VOC 4

55
Various customer requirements for a Loan process
Know status of loan Available

during application outside normal Has access to
business hours Professional experts
Can apply over phone
Responsive to Knowledgeable Provides answers

Low interest rate Easy access to capital my calls reps to questions
Flexible Easy Availability Personal Advise/

Product Process Interface Consulting
56
Affinity diagram – An Example
Flexible product Easy process Availability Personal interface Advice/consulting
Low interest rate Easy application Will come to my facility Knowledgeable reps Knows about my finances
Available outside normal

Variable terms Easy access to capital Professional Knows about my business
business hours
All charges clearly stated Quick decision Available when I need to talk Friendly Makes finance suggestions
Pay back when I want Can apply over phone Responsive to my calls Make me feel comfortable Cares about my business
No prepayment Know status of loan during

Talk to one person Patient during process Has access to experts
penalties/ charges application
Know status of loan (post- Available outside normal Provides answers to

Pre-approved credit
approval) business hours questions
Organize VOC into broad categories

57
Kano Model
Kano Model - background
This model was published in 1984 by Dr Noriaki Kano, professor of Quality

Management at the Tokyo University of Science. Its core concept is based on
the assumption that a product or service is not only a set of functionalities. It is
also about consumers’ emotions.
Basically, the Kano model forces you to

Prof. Noriaki Kano think about how to relate the products or
services to the consumers’ needs.
59
Kano Model
▪ To identify & prioritize the full ▪ Gather sorted customer needs.

range of the customers needs.
▪ Classify the needs into 3
How to built?
▪ Kano model helps to describe Categories:
which needs, if fulfilled contribute
Purpose
to customer dissatisfaction - Must be
neutrality or delight. - More the better
▪ Kano Model Identifies: - Delighters
- Must be needs – Critical to ▪ If there is insufficient data to
customer expectation. enable the classification, collect
- More is better – Critical to addition data on VOC.
customer satisfaction. ▪ Prioritize the customer needs to
- Delighter – Converting wants develop the CTQ.
to needs.
60
Kano Model
Basic Requirements are “must-be’s”. They are the

most important needs of customers. They are Must-be
required and expected to be there. These are the
needs the customer assumes will be met. When
requirements
these requirements are unfulfilled, the customer is These requirements are such where the customer
greatly dissatisfied and when fulfilled, the expects a certain level of sufficiency and anything
customer is neutral (i.e., they do not produce exceeding that level increases the customers
additional satisfaction). satisfaction. A direct positive correlation exists between
An example could be a shirt with a buttonhole that satisfaction levels and the degree of presence of these
One- performance requirements. The more performance
is sewed shut.
dimensional requirement elements needs are met, the better it is for
requirements the product or service.
An example could be a restaurant providing faster
services to its customers. Faster the speed more will be
Delighter Requirements are “attracters”. Their the satisfaction to the customers as customers would not
presence in a product/process is unexpected and like to wait much for the food to be served to them.
fulfill the latent needs of a customer. They lead to
great satisfaction if found present. When delighters
are absent, the customer still is neutral (& not Delighters
dissatisfied).
An example could be a restaurant providing
complementary desserts to its customers.
61
Prioritizing VOC for CTQ Identification – Kano model
SATISFACTION
MORE THE BETTER
DELIGHTERS + (One-dimensional)
INNOVATION COMPETITIVE PRIORITY
• Free upgrades • Seat comfort

• Individual movies and games • Quality of refreshments
• Special staff attention/services • Friendliness of staff
• Computer plug-ins • Baggage speed On-time

(power sources) arrival
DYSFUNCTIONAL - + FUNCTIONAL
MUST BE
CRITICAL PRIORITY
• Safe arrival
• Accurate booking
• Baggage arrives with passenger
• 99 per cent system uptime
-
DISSATISFACTION
62
Application of the Kano Model
Frame the questions carefully while gathering information from the customers:
1. I like it that way

Functional form
2. I expect it that way
If the delivery of the goods is faster, how
3. I am neutral
of question would you feel?

4. I dislike, but can accept it
5. I dislike it that way
1. I like it that way

Dysfunctional
2. I expect it that way
If the delivery of the goods is as-is, how
form of question 3. I am neutral
would you feel?
4. I dislike, but can accept it
5. I dislike it that way
63
Evaluation of the Kano Model
Dysfunctional
Customer Requirements
1. Like 2. Expect 3. Neutral 4. Live with 5. Dislike
1. Like Q A A A O
2. Expect R I I I M
Functional 3. Neutral R I I I M
4. Live with R I I I M
5. Dislike R R R R Q
Legends:
A: Attractive O: One-dimensional
M: Must Be Q: Questionable result
R: Reverse I: Indifferent
64
Example
Quality (CTQ)
Determine Critical To
Example: Translating VOC to CTQs
Good customer requirements:

Once the Voice of the Customer • Are specific and measurable (and the method of measurement is specific)
has been gathered, that • Are related directly to an attribute of the product or service
information must be translated
• Don’t have alternatives and don’t bias the design toward a particular approach or technology
into Critical Customer
Requirements (CCRs). • Are complete and unambiguous
• Describe what, not how
Voice of After Clarifying,

Critical Customer Requirements
the Customer the Key Issue(s) Is...
Customer wants the tax Sharing the Tax returns at

“I always gets the tax return to be received least 21 days before the
return at the nth hour early enough for their tax filing deadline.
before the deadline.” internal finance team to
perform the check.
67
Problem Statement from CTQ
• ‘You take too much time in getting back to me!’

Verbatim • ‘These forms are too cumbersome!’
• ‘I should be able to access the training content whenever I need them’
• Quick response.
Specific
need (CCR) • User friendly forms.
• System and training content availability.
• Process turn around time not more than 10 minutes.
CTQs • Improve the uptime of LMS by 40%.

Validate CTQ • Form < 2 pages and < 10 minutes to complete.
with customer
What gets measured gets managed… help ensure measurable CTQs

68
Measurements are critical
01 03
If we can’t
accurately
If we don’t know If we can’t control
measure
much about it, we it, we are at the
something, we
can’t control it. mercy of chance.
really don’t know
much about it.
02
69
Examples
VOC / VOB CCR
Deliver me product faster Delivery to be done in 30 mins.
Newly built multiplex is empty
Response to the query should not take that long
Not a lot of people are visiting the mall

There are many defects in the batch we produced
We are not profitable on the production; the costs are over running
the estimated budgets.
We don’t see many customers returning to us with business year on year.
We could not process the loan documents within the time

promised to customer
Loan application form submitted by officer has too many errors
The time taken from Prototype to Manufacturing is very high

70
Drivers of Project Selection
Deep Dive / Select Deliver and

Generate Project ideas Implement
Analyze project Evolve
Strategy
Translation opportunities
Identify Policy
Initiatives
Screen Spot-
Creating Implementation
check Rank
Customer Business case
Enrich
requirements
Industry trends
Defining ROI
Business objectives Translation opportunities
Put On Hold /
Rejected
Steering committee will assess and select

project as per prioritization matrix
71
Project Selection checklist
Create Unique project selection Use the criteria to prioritize the

criteria: projects?
• How will the improvement impact revenue be

facing measurements such as profit; orders or Some example questions/ criteria could be :
income? • Potential savings
• What savings will the improvement create? • Potential costs

• How is the problem trending? Is it becoming a • Potential increase in revenue
bigger and more urgent issue quickly, or can the
organization operate with minimal impact without • Ability to access resources needed for the
making an immediate or near-future change? project
• How much will the improvement cost?
• How many employees/ hours efforts will be
required for the improvement?
• What resources will be required for the
improvement?
72
Project Selection matrix
A matrix can be created using the criteria and a list of projects Teams can then rate each projects against the criteria using the sale like 1 – 10
(1 being the lowest and 10 being the highest)
Revenue Access to the

Projects Savings Costs Total
increase resources
Project 1 1 8 9 8 26
Project 2 4 5 4 6 19
Project 3 10 2 7 9 28
Project 4 7 5 6 3 21
To rank the projects, add up the scores for all categories and order the projects from highest to lowest by total score.
73
SIPOC
SIPOC
Identify the process variables and evaluate their

relationships using SIPOC and other tools.
When defining a process, it is very important to identify the
start and end points.
A thorough understanding of the process inputs and
outputs and their relationship is the key step in process
improvement.
A SIPOC is that tool that will help us understand this

relationship and have better understanding of the high-
level view of the process.
The acronym stands for:
• Supplier
• Inputs
• Process
• Output
• Customer
75
SIPOC
Customer: The recipient of the

process output – may be
internal or external
Supplier: The
provider of inputs
to your process
Output: The products

or services that result
from the process
SIPOC
Input: Materials,
resources or data
required to execute
your process
Process: A collection of activities that takes
one or more kinds of input and createsoutput
that is of value to the customer
76
SIPOC
Boundary – Boundary –
S (Start of (Completion of
Process) Process) C
U O U
P I
U S
P N
T T
L P PROCESS P O
I U
U M
E T
T E
R R
Requirements, Specs and Information

77
SIPOC Example
Let us look at an example of Purchase Order (P.O.) Requisition to final Approval
Supplier (S) Input (I) Process (P) Output (O) Customer (C)
User Department Stock List Generate Purchase Requisition Purchase Requisition User Department HOD
User Department 1. Purchase Requisition Approved Purchase

Approve Purchase Requisition Procurement
HOD 2. Budget Requisition
1. Approved Purchase
Procurement
Requisition Raise Request of Quotation Request for Quotation Approved Vendors
2. List of Approved Vendors
Approved Vendors Techno commercial evaluation

Quotation Shortlisted Quotation Procurement
received quotation
Procurement Shortlisted Quotation Select preferred vendor Quotation of preferred Vendor Procurement
Procurement Quotation of preferred Vendor Prepare purchase order Purchase order Signing Authority
Signing Authority Purchase order Approve purchase order Approved purchase order Preferred vendor
78
Project Charter
What is a Project Charter?
A project charter is a document stating the purposes of the

project. It serves as an informal contract that helps the
team stay on track with the goals of the enterprise.
It is one pager document which clarifies what is expected
from the project; by when and who all are involved. It also
talks about the impact/ consequences of the problem and
lists down the benefits of the project.
A Charter:
• Clarifies what is expected of the project.
• Keep the team focused.
• Keeps the team aligned with organizational priorities.
• Transfers the project from the Champion to the
Improvement Team.
• Used as a tool by the Apex Council to review project
progress.
80
Components of Project Charter
Problem Project Project Team

Business Case Goal Statement Project Scope
Statement Timelines Members
Does project “Y” What is the What is the Clearly defining Key milestones/ Who are the key
link to business problem/ estimated target project’s In timelines/ resources ?
Y’s? opportunity of for scope and Out detailed plan What will be the
improvement? improvement? of Scope roles of BBs/

Sponsor/ MBB’s
81
Business Case
Why is the project worth doing? Justify the

resources necessary to engage in the project.
Why is it important to do now? (Priority)
What are the consequences of not doing this

project? (impact)
How does it fit with business initiatives and

targets?
82
Problem Statement:
The purpose of the Problem Statement is to describe what is wrong - Description of the “pain”
What is wrong or not When and where What’s the

How big is the
meeting our does the impact of the
problem?
customer’s needs? problem occur? problem?
Since When What is the What a Problem Statement

What is the is this impact on should not do is Assign a
problem? problem the Cause or Blame and
existing? process? Include a Solution.
Where is How did you
the know about
problem? it?
83
Problem Statement – An example
Example 1
“There has been late
payments done by some of Poor Statement
our clients and its leading to Because our customers are dissatisfied with our service, they are late paying their bills.
mismanagement of the
Improved Statement
cashflows in the
organization.” In the last 6 months (when) 20% of our repeat customers – not first timers (where) – were over 60
days late (what) paying our invoices. When surveyed, all of these customers reported extreme
“As observed from the credit dissatisfaction with our service (what). The current rate of late payments is up from 10% in 1990 and
report (how did you know) represents 30% of our outstanding receivables (how big). This negatively affects our operating cash
flow (impact).
for the last 3 months (when),
12% of our customers are
late, by over 45 days in Example 2
paying their bills (what). This Poor Statement
represents 20% (magnitude)
Customers are unable to access the call center half the time leading to high revenue losses.
of our outstanding
receivables & negatively Improved Statement
affects our operating cash During the year 2003, (when) 40% of our customers (extent) were unable to access the call center at
flow (consequence).” the first attempt (what). This causes dissatisfaction to our customers and a loss of revenue
opportunities to the organization (impact).
84
Goal Statement
• The Goal Statement defines the team’s improvement objective.

• Define the improvement the team is seeking to accomplish.
• Must not assign blame, presume cause, or prescribe solution!
• Goal Statement has four parts:
- Start with a verb (e.g., reduce, eliminate, control, increase).
- Focus of project (cycle time, accuracy, etc.).

- Has a definite Target (by 50%, by 75%).
- Has a definite deadline (completion time).
Specific Measurable Achievable Realistic Time bound

85
Goal Statement – An example
Example 1
“There has been late
payments done by some of Poor Statement
our clients and its leading to Because our customers are dissatisfied with our service, they are late paying their bills.
mismanagement of the
Improved Statement
cashflows in the
organization.” In the last 6 months (when) 20% of our repeat customers – not first timers (where) – were over 60
days late (what) paying our invoices. When surveyed, all of these customers reported extreme
“As observed from the credit dissatisfaction with our service (what). The current rate of late payments is up from 10% in 1990 and
report (how did you know) represents 30% of our outstanding receivables (how big). This negatively affects our operating cash
flow (impact).
for the last 3 months (when),
12% of our customers are
late, by over 45 days in Example 2
paying their bills (what). This Poor Statement
represents 20% (magnitude)
Customers are unable to access the call center half the time leading to high revenue losses.
of our outstanding
receivables & negatively Improved Statement
affects our operating cash During the year 2020, (when) 40% of our customers (extent) were unable to access the call center at
flow (consequence).” the first attempt (what). This causes dissatisfaction to our customers and a loss of revenue
opportunities to the organization (impact).
86
Project Scope
Project Scope helps us to understand the start and end point for the process and also gives an
insight on project constraints and dimensions. It’s an attempt to define what will be covered in the
project deliverables. Scoping sharpens the focus of the project team & sets the expectations right.
There are two types of scoping:
• Longitudinal Scoping
• Lateral Scoping
Absence of proper scoping may result in the team losing interest in the project. Project becomes
difficult to implement. Even after implementation, the desired benefits are not seen. Team focuses
on trivial pain areas and missing out the real ones. Process selected is too broad to handle.
• Longitudinal Scoping: Longitudinal scoping is done on the length of the process e.g. – From the
receipt of PO till the delivery at the distributor's go-down e.g. – From the time of customer
reporting the complaint till final satisfaction confirmation. Mostly the ‘start’ & ‘end’ points are
fixed.
• Lateral Scoping is done on the breadth of the process e.g. – All dispatches from North & South
regions e.g. – Calls received during general shift
87
Project Timelines / Milestones / Project Plan
Project milestone in a charter specifies

timelines for completion of each phases
with signed tollgates.
It is a preliminary, high level project plan

with dates, which is tied to phases of

DMAIC process. It should be aggressive
(don’t miss “Window of Opportunity”) yet
should be realistic (don’t force yourselves
into “Band-aid” solution).
The project milestones to further include a

detailed project plan (Gantt chart) along
with a documented communication plan.
88
Project Team Members
Champion / Sponsor Black Belt Green Belt Six Sigma Team
• Head of the business • Coaches the team • Project Leader • Participates in the
unit / function • Help champions • Selects team members meetings
• Project owner • Help plan meetings • Plans team meetings • Helps execute the project
tasks
• Barrier remover • Observe team’s • Leads meetings

• Funds project performance • Implements the
• Make recommendation
recommendations or
• Resource aligner • Reviews projects with or changes
changes
• Project Reviewer Business unit head
• Army of people driving
the project with Project
Leader
89
Roles and Responsibilities of Team Members
Members Role Define Measure Analyze Improve Control
Six Sigma
Name 1 A A A A A
champion Approver of the team
A decisions
Six Sigma
Name 2 Deployment A A A A A
leader Resource to the team, one
whose expertise and skills
Name 3 Master Black Belt A A A A A R may be needed on an ad-
Name 4 Process Manager A I I A A hoc basis
Name 5 Black Belt R R R R R

Member of the team, whose
Deployment M expertise will be needed on
Name 6 R R R R R
Leader a regular basis
Subject Matter
Name 7 M M R R R
Expert Interested Party, one who
will need to be kept
Name 8
Process
M M R R R I informed on direction, and
Executive
findings during the project
Name 9 Trainer M M R M R
Name 10 Trainer M M R M R
90
Sample Project Charter
LEAN SIX SIGMA PROJECT CHARTER
Problem Statement Business Case
From last 6 months the avg. TAT of discharge for TPA & corp. patients has Hospital earn 35 - 40% of the revenue from TPA and Corporate Patients. But from last 6
increased to 5 hours. This delay leads to huge customer dissatisfaction. If unsolved months the avg. TAT of discharge process for TPA & Corp. patients has increased up to
it will lead to a revenue loss of INR 40,00,000 per annum and loss of reputation. 288 mins. This delay has a cascading effect on the further patient transfers which leads to
a revenue loss of INR 40,00,000 per annum and huge customer dissatisfaction. By doing
this project of 50% reduction in avg. discharge TAT will lead to a potential profit of INR
40,00,000/- per annum.
Goal Statement Process Boundaries

To reduce the Average TAT for discharge of TPA & Corp. patients by 50% i.e., Start: Consultant / Medical Officer writes discharge Order in Patient's file (TPA &
from 288 mins. to 150 mins. by July 2010. Corp.)
CTQ Metric Baseline Target
Avg. TAT Hours 288 150 Stop: Patient vacates the Room
Completion Schedule
Project Out of Scope Phase Target Actual
All other patient discharge process Define 25th April 2010 24th April 2010
Measure 23rd May 2010 23rd May 2010
Project Assumptions Analyze 28th June 2010 2nd July 2010
• Project depends on a cross-functional team and assumes that team members Improve 28th July 2010 27th July 2010
would support the project.
• There would be no special causes like any kind of pandemic or so. Control 20th August 2010 28th August 2010
91
Summary
• The key elements of a Project Charter includes:

• Business case; Problem statement; Goal statement; Project Scope;
Milestones and Roles.
• Team Charter plays a vital role in overall project’s success. It clearly
communicates the direction to all team members.
• A crystal-clear problem statement defines what is wrong and Goal statement
defines your project’s objectives.
Lean Six Sigma Black Belt training programme – Part 1
• A project charter clarifies what is expected from you project; by when do we

expect it; who all are involved and brings everyone on same page.
• A team is very important, because its not just collection of individuals. Make sure
everyone is clear about their roles and is focused on achieving the same goal.
92
Great Project
Be clearly Be aligned Be felt by the Work with Show

bound with with critical customer. other projects improvement
defined goals. business There should for combined that is locally
If it looks too issues and be a significant effect. actionable.
big, it is. initiatives. impact. Global or local
It enables full ‘themes’.
support of
business.
93
Project selection
Success factors Common pitfalls To be successful Avoiding pitfalls

• Project scope is • Resourcing of • Set up project • Identify and get
manageable project is scope charter and committed
• Project has inadequate have it reviewed resources up-front
identifiable defect • Duplicating • Measure where • Research

• Project has another project defects occur in database and
identifiable impact • Losing project the process translate where
momentum • Assess and possible
• Adequate buy-in
from key • Picking the easy quantify potential • Set up milestones
stakeholders X, not the critical X impact up-front and
• Perform communications
stakeholder plan
analysis
94
Workout Session
Create a
Project Charter
“
me and I may remember,

“
Tell me and I forget, teach
involve me and I learn

95
Precision Delivery Inc. (PDI) is a package pickup and delivery service for homes and small businesses.
PDI specializes in packages 50 pounds or less and has a full-price rebate policy for any pickup or delivery
made outside the customer-designated 15-minute window. PDI advertising proudly states, “Pick-up and
delivery at your convenience, not ours.”
PDI has facilities at 2 locations, Downtown and Suburbia, each servicing customers within a 15-mile radius
with pickup and deliveries made by truck or bicycle. Customers designate a 15-minute window for their
packages to be picked up or delivered. PDI charges customers $5 per package plus $1 per pound (50-
pound maximum).
PDI Sales Operators receive pickup and delivery requests by phone from customers. Dispatchers issue
instructions to Field Operators for pickups and deliveries. To ensure prompt service, Dispatchers plan for
30 minutes of travel time, one way, for each pickup or delivery and target arrival time for the start of the
15-minute window. Under current procedures, travel time in excess of 45 minutes will result in a rebate
and travel time less than 30 minutes results in idle time for the Field Operator. Field Operators return
Case
directly to the dispatch facility after each pickup or delivery.

PDI pays a subcontractor who offers bike and truck time on demand, only for round-trip road time and idle
time at the customer destination. PDI accountants have calculated the Field Operations variable cost for
delivery, pickup, and idle time at $7.50/hour for bicycles and $15.00/hour for trucks. All other costs are
fixed at $5,000 per week. Pickups and deliveries are made Monday through Friday, 8:00 a.m. to 4:00 p.m.
Over the last six months, Operations MIS reports indicate 45% occurrences of not meeting timeliness of
deliveries and pickup. As a damage control measure, Sales Operators were instructed to remind
customers of the PDI price rebate policy. Additionally, a short survey was sent out to a small group of
established customers. Survey results disclosed an appreciation of price rebates, but a preference for
deliveries within the promised 15-minute window.
96
Define phase tollgate review
A successful define phase ends with all the following deliverables

A definition of
An what success will
A
An understanding of look like that has
comprehensive A Team Charter
understanding of the process with been agreed on
Project case with
the Voice of the a SIPOC and by the team
with a Project responsibilities members and
Customer scope
Charter Sponsors / Apex
boundaries
Council.
97
Define phase recap
Customers VOC High Level Process Map Project Charter
• Internal / External • Affinity Diagram • SIPOC • Business Case

• Kano Model • Problem Statement
• VOC to CTQ • Goal Statement
conversion
• Project Scope
• Project Timelines
• Project Team
Members
98
Questions
1 2 3
When there is no Which of the following Process Mapping
process, which is not a part of Project during the define
approach should Charter? phase must be

you avoid? a) Project Scope mapped as the
a) DMAIC way you want the
b) Business Case process to be?
b) DMADV c) Potential Causes a) True
c) IDOV d) Problem / Opportunity b) False
d) None of the Statement
above e) Project Timelines
99
Measure phase
Learning outcomes
Map the Process

1
Plan for data collection
and Validate the
2 Measurement System
Estimate Potential
Savings 5 MEASURE
Collect the data and

3 measure it
Calculate the Process 4

Sigma Level
Learning outcomes
At the end of the MEASURE phase you will be able to
How to calculate the

estimated savings
How to calculate
the Sigma Level
Best method for

data collection
Validate the
Measurement System
Map process using different techniques

Map the detailed process

What is a Process?
Process is a collection of activities that takes one or more inputs and transforms them into
outputs that are of value to the customer.
The Business Process

Inputs Outputs
Supplier(s) Customer(s)
Different techniques for Process Mapping
The developing reality – at least three versions:

Different techniques for Process Mapping:
The developing reality – at least three versions:
Process Flow Diagram / Cross Functional Value Stream

Flowchart Deployment Map Mapping
Procurement to
Pay Process Pha
se
Departmen
Justify the Take approval
Start Identify Update Is it
expense?
budgeted unplanned as per
the the
User
No
purchase DOA post
require requisition
request receipt of
ment form
t
Good or
Yes Services
men
Hea
Depart
d
Approve
t
the
requisitio
n
Procurement
No Send to the
finance
Arrange for
the
vendor
quotations
Evaluate the
quotes
Seek
approval
Raise the
PO and
Send the
PO to
team for s and from inform the Vendor
Team
approval from finalize Finance user
No team
Share the PI Send the
Yes
and Approval
Vendor and Invoice to
details for Finance
raising PO Department
Yes
Process
for the
processing
Check the Issue the Invoice
Finance
Requisitio
necessary PO and make
n
Team
requisites as entries in
Approved system
per DOA Process the
?
Payment as End
per the
due date
Standard symbols used in Process Flow Diagram
Start point / End point Decision box

Direction
Activity Box
Document / Form / Template
Example – Process Flow Diagram

Example – Functional Deployment Map

Functional Deployment Map - Inference
5 Decision boxes for only 3 Too Many Paths Crossing

Too Much Clutter
activities – Investigate for Each Other
– Investigate for Quick Wins
Quick Wins – Investigate for Quick Wins
Applications used for process mapping
MS Visio / Excel / OmniGraffle –

Gliffy yEd CADe
PowerPoint / Word Specially for Mac users
and many applications….

• It is very important for a Lean Six Sigma Project Team to identify few “Quick
Wins” based on the “AS-IS” process map. These quick wins need to be
such that they can implemented immediately.
• Implementing quick wins gives confidence to management that team is
doing work and also they help to silence the critics.
• These quick wins can be any one or more of the either;
• A standard checklist for ensuring nothing is left unnoticed
• A standard template for any format that records data or information
Quick Wins
112 Lean Six Sigma Black Belt training programme – Part 1
• A SOP for doing repetitive kind of work by many operators

• Important point to remember is that Quick Wins cannot change the work
done nor can they change the sequence of doing work, because that would
impact the CTQ and in that case the Define Phase becomes redundant.
• All such observations need to be recorded and planned for implementation
in Improve Phase.
Data Types
What is Data?
Data is a collection of information that conveys

quality, quantity, facts, numbers, statistics or
any sort of meaningful information about a
process performance. Data may represent
abstract ideas or concrete measurements.
Data is collected using techniques such as

measurement, observation, query, or analysis,
and typically represented as numbers or
characters which may be further processed.
Before getting into analysis, raw data is

typically cleaned, outliers are removed, and
obvious instrument or data entry errors must
be corrected.
Types of Data – Discrete and Continuous
Examples Discrete Continuous

• Number of (Attribute) Data (Variable) Data Examples
incomplete • Data that can be • Data that can be • Cycle time
applications. counted is termed measured (with a (measured in

as a Discrete or unit value) is termed
• Count of the days, hours,
Attribute data. as a Continuous or
defects Variable data. minutes, etc.).
observed in • Binary (Yes/No,
Defect/No Defect). • Continuous data • Weight (measured
the process. in tons, pounds,
can be broken down
• Ordered categories etc.).
• Number of Green into increments with
(1-5).
Belts trained. infinite number of
• Counts. possible values.
Why do we need data?
Why Data Type Important ?
Choice of Amount of Information

Choice of Amount of Information
data display data about current
data display data about current
and analysis required: and historical

and analysis required: and historical
tools. continuous process
tools. continuous process
data often performance.
data often performance.
requires a
requires a
smaller
smaller
sample size
sample size
than discrete
than discrete
data
data
Examples
1 Percent defective parts in hourly production Discrete
2 Percent cream content in milk bottles (comes in four bottle container sets)
3 Time taken to respond to a request

4 Number of blemishes per square yard of cloth, where pieces of cloth may be of variable size
5 Daily test of water acidity
6 Number of accidents per month
7 Number of defective parts in lot of size 100
8 Length of screws in samples of size ten from production lot
9 Number of employees who took leave in the last 5 years

Collect the data

Data Collection
Why collect data? What to collect ? How to collect?

• The purpose of • Identify measures • Formulate data
the data collection • Define operational collection plan
exercise definitions • Sampling strategy
• What data to be • Pilot data collection
collected plan
Word of caution:
Ineffective data
leads to ineffective Collect data Ensure consistency &
conclusions • Pilot collection and stability
validation plan • Develop
• Train data collectors measurement system
analysis
• Test and validate
• Monitor and improvise
Data Collection
Data collection occurs Data collection plan It is important to be Operational definitions

multiple times needs to be prepared / clear about the data help to guide how CTQ
throughout DMAIC. referred for data collection goals to will be measured. The
The data collection collection on Y in ensure the right data is critical factor is that
plan described here Measure phase and collected. If your data any two people using
can be used as the X’s in Analyze phase. is in the wrong form or the operational
guide for data format, you may not be definition will be
collection. This help us able to use it in your measuring the same
ensure that we collect analysis. thing in the same
useful, accurate data manner.
that is needed to
answer our process
questions.
Operational Definition
• To remove ambiguity: Everyone has a consistent

understanding.
What is an
Purpose of • To provide a clear way to measure the characteristic.
Operational
Operational • Identifies what to measure.

Definition?
Definition • Identifies how to measure it.
An operational • Makes sure that no matter who does the measuring, the
definition is a clear, results are consistent.
concise description of a
measurement and the
process by which it is to
be collected.
Operational definition example:
What are you What is the Basic Calculation:

trying to measure that it operational
% compliance =
measure? does not include? definition of the
(total number of
measurement.
% of compliance to NA files meeting the

the requirements The number of criteria (accepted)
files meeting the / total number of
criteria (not files submitted) *
rejected) out of 100
the total number
of files submitted.

Average TAT for
rectification =
measurement.
Time spent on Time spent on end- Total time spent

revising the Tax to-end tax returns Time spent on on rectification /
returns calculation for rectification after No. of rectification
correct files first error identified requests received

Average Cost
overbudget= Total
measurement.
Average Cost NA extra amount spent

Overbudget Amount of cost over budget (Actual
spent extra over cost – budget cost)
the budgeted cost / Number of
of the project projects where
extra amount spent
Data Collection Plan
Why? - Why do we need to collect the data? How will it help?
What? – Operational definition should answer this.
Where? – Source from where the data needs to be collected.

A good data
collection plan
should cover When? – Frequency of data collection. (once in a day/ per shift/ once in a week)
the following:
(5W and 2H) Who? – The operator who is responsible to collect the data for you.
How? – What method of sampling to be used. (Simple Random/ Stratified/ Systematic)
How Much? – What is the quantum of data to be collected. (Sample Size / Complete
Population)
Sampling techniques
1 2 3
The Six Sigma team would always face The validity of the data is impacted by In process improvement, there are several
a question ‘How much data do we need many things: For example, operational questions to keep in mind relative to sampling:
to have a valid sample?’ Though an definitions, data collection procedures • Is the data representative of the situation or is
important part of data collection is to and recording. bias possible?
obtain a sample of reasonable size, it is
• Why am I sampling? To improve or control a
one of many questions to be addressed
process or to describe some characteristic of
during the planning and development of
a population?
a data collection strategy. Sample size is
just one aspect of a valid data collection • What are the key considerations for either a
activity. process or population situation?
• What is the approach to sampling (e.g.,
random, systematic, etc.) and approximately
how many to sample.
When to Sample?
When to sample?
High-cost Data collection

When
Collecting all implications can be a
Time measuring a
the data is due to destructive
availability. high-volume
impractical. population process (crash
process.
study. testing of cars).
Population and Sampling
What is
An entire set Sample?
The small number
of items is of items taken from

called the the population to
make a judgment of
Population. the population is
called a Sample.
The numbers of
samples taken
to make this
judgment is
called Sample
size.
Sampling Techniques
Simple Radom Sampling: Every unit has the same chance of being selected.
Example: Survey across organization to know –”What percentage of employees have visited the intranet in last
seven days. Select employees from Population at random And collect data.
Stratified Random Sampling: Random sampling from proportional subgroups of the population.
Example: Average cycle time for LC issuance process of different countries. Each country is a strata (segment). Collect
random data from each strata.
Systematic Sampling: Includes every nth unit. The formula is
k = N/n (where N is population size and n is the sample size).
Example: Suppose you want to sample 10 calls from the 150 calls received in a day. 150/10=15, so every 15th call is chosen.
Sampling subgroups: Subgrouping is the process of putting measurements into meaningful groups to better
understand the important sources of variation.
Example: While studying the arrival rate of documents as dispatched by the customer. The entire day is split up into
quadrants, rational being the arrival rate of documents is similar within each quadrant and different between quadrants.
Confidence Level and Confidence Interval
Confidence Level is
directly proportional to
Confidence Level will Sample Size. If
always be 95% for Confidence Level
normal transactional Confidence Interval (CI) If Sample Mean = 56 increases (95% - 99%),
and manufacturing represents the range and the CI = (53, 59), Sample Size will also
businesses. Medical, for the Population Mean then the Population increase. If Confidence
space and aeronautics based on value of Mean will always lie Level is 100%, then
will be diff. Sample Mean. between 53 and 59. Sample = Population.
Confidence Level is At 95% confidence, the Sample Size versus

directly proportional to CI range may be + 5%, Confidence Interval is
Confidence Interval but at 99% confidence inverse relation, where
(CI). For higher the CI range for the with increasing Sample
Confidence Level, the same parameter will Size range of
CI range will increase, increase to + 10%, Confidence Interval
provided sample size provided sample size decreases and vice
remains the same. remains the same. versa.
Data collection plan - Example
A format of an excel spread sheet that can be used for creating data collection plans for our projects. The sample data collection plan
below is for the project CTQ, in this example, number of rejections.
However, one should remember that based on C-E diagram and the SIPOC all those Xs which the team feels to have a influence
over the Y should also be included in the data collection plan.
Example of a data collection plan
Report
Operational
Measure Target Source Sample Size extraction When Data period
Definition
frequency
Any transaction
No. of Rejection report
marked as 'Rejected' 0.50% All data points Daily End of the day 3 weeks
Rejections from xxx system
in the xxx system
Analysis
Measurement System
Introduction to MSA
Our day-to-day working is being impacted by more and

more data. We have become a data driven society.
What
Whatisismeasurement
measurementsystem
systemanalysis
analysis
In business and industry, we are using data in more
(MSA)?
(MSA)?
ways than ever before.
Today manufacturing companies gather massive

amounts of information through measurement and
inspection. When this measurement data is being used What
to make decisions regarding the process and the Whatisisaameasurement
measurementsystem?
system?
business in general it is vital that the data is accurate. If
there are errors in our measurement system, we will be
making decisions based on incorrect data. We could be
making incorrect decisions or producing non-conforming What
Whatisismeasurement
measurementsystem
system
parts. A properly planned and executed Measurement variation?
variation?
System Analysis (MSA) can help build a strong
foundation for any data-based decision-making process.
What is Measurement System Analysis (MSA)
MSA is defined as an Measurement systems analysis is a A measurement system

experimental and mathematical method for determining whether a analysis is a critical component
method of determining the measurement system is acceptable. for any quality improvement
amount of variation that exists For a continuous response variable, process. Evaluate your
within a measurement process. use measurement system analyses measurement system before
Variation in the measurement to determine the amount of total using control charts, capability
process can directly contribute to variation that is from the analysis, or other analyses, to
our overall process variability. measurement system. For an prove that your measurement
MSA is used to certify the attribute response variable, use system is accurate and precise,
measurement system for use by measurement system analyses to and that your data are reliable
evaluating the system’s accuracy, evaluate the consistency and
precision and stability.. accuracy of appraisers.
MSA
Actual cost – Ideal cost = COPQ
What is Measurement System?
Definition: Before we dive The sources of variation in a measurement process can include the following:
further into MSA, we should
review the definition of a Process – test method, specification
measurement system and Personnel – the operators, their skill level, training, etc.
some of the common sources
Tools / Equipment – gages, fixtures, test equipment used and their associated calibration
of variation. A measurement
systems
system has been described as
a system of related measures Items to be measured – the part or material samples measured, the sampling plan, etc.
that enables the quantification Environmental factors – temperature, humidity, etc.
of characteristics. It can also
include a collection of gages, All these possible sources of variation should be considered during Measurement System
fixtures, software and Analysis. Evaluation of a measurement system should include the use of specific quality
personnel required to validate tools to identify the most likely source of variation. Most MSA activities examine two
primary sources of variation, the parts and the measurement of those parts. The sum of
a particular unit of measure or
these two values represents the total variation in a measurement system.
assess the feature or
characteristic being measured. Total Variation = Part to Part Variation + Measurement system Variation.
What is measurement system variation?
Measurement system variation is the variation that occurs when

you measure something.
Specifically, measurement system variation is the sum of
variation from repeatability and reproducibility.

Any component of a measurement system, such as a gage, a
procedure, and software, can be a source of variation.
Measurement system variation = Repeatability + Reproducibility

Actual cost – Ideal cost = COPQ
Sources of Process Variation
Overall Variation
Part-to-Part Variation Measurement System Variation

Variation due to Repeatability Variation due to Reproducibility
Operator Reproducibility Operator by Part Interaction

Sources of Process Variation
Part-to-Part Variation: The variability in measurements across different parts. Ideally,

differences between parts (Part-to- Part) should explain most of the variability.
Measurement System variation: Measurement system variation is all variation
associated with a measurement process. Potential sources of variation include gages,
standards, procedures, software, environmental components, and so on. Like any other
process, a measurement system is subject to both common-cause and special-cause
variation. To control the measurement system variation, you must first identify the sources
of the variation, then you must either eliminate or reduce the various causes.
Measurement system variation is split into two sources:
• Repeatability: Repeatability is the variation due to the measurement device. It is the
variation that is observed when the same operator measures the same part many
times, using the same gage, under the same conditions.
• Reproducibility: Reproducibility is the variation due to the measurement system.
It is the variation that is observed when different operators measure the same
part many times, using the same gage, under the same conditions.
Reproducibility can be split into two sources:
• Operator: The variability in measurements due to different operators.
• Operator-by-Part: The variability in measurements due to different operator/part
combinations after considering part and operator separately.
Why Perform MSA
• An effective MSA process can help

assure that the data being collected is Example:
accurate and the system of collecting
the data is appropriate to the process. • A major manufacturing company began receiving calls from several
of their customers reporting non-compliant materials received at their
• Good reliable data can prevent wasted facilities sites. The parts were not properly snapping together to form
time, labor and scrap in a manufacturing an even surface or would not lock in place.
process.
• The process was audited and found that the parts were being
• To verify the adequacy of measurement produced out of spec. The operator was following the inspection
system for Y when establishing process plan and using the assigned gages for the inspection. The
baseline. problem was that the gage did not have adequate resolution to
• To verify the adequacy of measurement detect the non-conforming parts.
system when verifying causes. • An ineffective measurement system can allow bad parts to be
• To verify the adequacy of measurement accepted and good parts to be rejected, resulting in dissatisfied
system when verifying solutions. customers and excessive scrap. MSA could have prevented the
problem and assured that accurate useful data was being collected.
• To verify the adequacy of measurement
system when controlling the X’s.
Validate Measurement System - Objective
• To determine what percentage the Reproducibility Repeatability

Total Observed Variation is due to
Measurement Device and
Measurement Method in addition
to the true Part to Part variation.
• To statistically verify that the
current measurement system

provides:
• Unbiased results
• Minimal variability within the
measurement system.
• True representative values of the
factors being measured
• Gage system error within a
measurement system is the sum
of: Bias( Accuracy) Stability Sensitivity
Types of Measurement Errors - Key Definitions
Reproducibility
Repeatability: : The variation
The variation in in the average
measurements of
obtained with a measurements
Accuracy: The gage when taken by Stability: The Sensitivity: The
difference used several different variation in the ability of the

between the times by one operators using average of at measuring
observed operator while the same gage least two sets of instrument to
average of measuring the while measuring measurements detect the
measurements identical the identical obtained with a smallest unit of
and the true characteristic on characteristic on gage as a result change in
average of the the same the same of time on the measured
items measured. sample piece. pieces. same pieces value.
Bias (Accuracy) and Repeatability
Precise Not Precise
Accurate
Inaccurate Bias
You can correct for Bias

You can NOT correct for Imprecision
How to perform Measurement System Analysis (MSA)
• MSA is a collection of experiments and analysis performed to evaluate a measurement system’s capability,
performance and amount of uncertainty regarding the values measured. We should review the measurement
data being collected, the methods and tools used to collect and record the data.
• Our goal is to quantify the effectiveness of the measurement system, analyze the variation in the data and
determine its likely source. We need to evaluate the quality of the data being collected regarding location and
width variation. Data collected should be evaluated for bias, stability and linearity.
• During an MSA activity, the amount of measurement uncertainty must be evaluated for each type of
gage or measurement tool defined within the process Control Plan.
• Each tool should have the correct level of discrimination and resolution to obtain useful data. The process, the
tools being used (gages, fixtures, instruments, etc.) and the operators are evaluated for proper definition,
accuracy, precision, repeatability and reproducibility.
Data Classification:
• Before analyzing the data and the gages, tools, we must determine the type of data being collected in
sample. The data could be Variable data or Discrete one.
• Attribute data is classified into specific values, whereas Variable or continuous data can have infinite
number of values.
Gage R & R
Variable Gage R & R Study:

• For gages or instruments used to collect variable continuous
data, Gage Repeatability and Reproducibility (Gage R & R) can
be performed to evaluate the level of uncertainty within a
measurement system.
• To perform Gage R & R we need:

• At least two operators (persons doing the measuring) should
participate. Two or three operators are typical.
• At least 10 parts should be measured. The same characteristic
is measured on each part. These are 10 units of the same type
product that represent the full range of manufacturing variation.
• Each operator needs to measure each part two or three times.
Parts should be measured in random order.
• Parts should be masked so that operator does not realize that
he / she is measuring the same part number of times.
Variable Gage R&R – Acceptability Criteria
Part to Part Variation Measurement System Variation Decision on Measurement System
More than or equal to 90% Less than or equal to 10% UNCONDITIONALLY ACCEPTED
Between 70% to 90% Between 10% to 30% CONDITIONALLY ACCEPTED
Less than 70% More than 30% NOT ACCEPTED

Also, Number of Distinct Categories must be Greater than 5 : NDC > 5

Variable Gage R&R using Minitab
Refer the data

sheet – Thickness.
MTW in Minitab
Choose Stat >

Quality Tools >
Gage Study >
Gage R&R Study
(Crossed).
Measurement System does not meet the criteria as

the SV% and Contribution % exceed the criteria
The number of distinct categories is less than 5,

therefore it is not acceptable.
Breaking down overall variation
100% (source 89.33+10.67)
Overall Variation
89.33% 10.67% (source 7.56 + 3.10)
Part-to-Part Variation Measurement System Variation

3.10% 7.56%
Variation due to Repeatability Variation due to Reproducibility
2.19% 5.37%
Operator Reproducibility Operator by Part Interaction

Range Chart must be in statistical

control over all operators.
If special cause is present, implement
counteraction then redo the test.
In this case, the range chart is

acceptable
2
Attribute Agreement Analysis
• It is also important to have good repeatability and

reproducibility when obtaining attribute data.
• If one operator, for example, decides a unit has
an “appearance” defect and another operator
concludes the same unit has no defect, then
there is a problem with the measurement system.
• Similarly, the measurement system is inadequate

when the same person draws different
conclusions on repeat evaluations of the same
unit of product.
• An attribute measurement system compares
each part to a standard and accepts the part if
the standard is met.
• The screen effectiveness is the ability of the
attribute measurement system to properly
discriminate good from bad.
Attribute Agreement Analysis – Acceptability Criteria
KeyKey
Points:
Points:
While 100% is the most desirable result in Attribute Agreement
Before
Before
collecting
collecting
newnewdata,
data,
evaluate
evaluate
the the Analysis , the following guidelines are frequently used:
gage gage
usingusing
MSAMSAfor either
for either
variable
variable
or or
attribute
attribute
data.
data.
Kappa Guideline
Before
Before
using
using
existing
existing
data,data,
try to
tryestimate
to estimate
the trustworthiness
the trustworthiness
of the
of data.
the data. 0.90 to 1.00 Acceptable
Don’t
Don’t
delay
delay
a Six
a Six
SigmaSigma
project
project
duedue
to ato a 0.80 to 0.90 Marginal
poorpoor
MSA.MSA.
KeepKeepthe project
the project
moving
moving
withwith
nonnon
numerical
numerical
analysis
analysis
wherever
whereverpossible,
possible, Less than 0.80 Not Acceptable
suchsuch
as Process
as Process Analysis,
Analysis,
WasteWaste
Identification,
Identification,
identification
identification
of Non-Value-
of Non-Value-
Added
Added
Activities,
Activities,
andandimprove
improve
the gage
the gage
as as
the project
the project
goesgoes
forward.
forward.
Measure the data

Attribute Agreement Analysis – Acceptability Criteria
Data measurements
Mean Measures of Range

Measures of
Median 01 Dispersion / 02 Variance
Central
Variation
Mode Tendency Standard Deviation
Measures of Central tendency
Placement Time for an Analyst’s Positions (in days)

22, 26, 26, 31, 33, 37, 37, 42, 52, 52, 52, 57, 59
X = 40.5 days Mode = 52 days Median = 37 days

Mean or Average Mode Median
The sum of the values The most frequently The middle observation in
in a data set divided by occurring data value. the data set that has been
the number of values. arranged in ascending or
descending order.
Placement Time for an Analyst’s Positions (in days)

22, 26, 26, 31, 33, 37, 37, 42, 52, 52, 52, 57, 59
s2 =  ( x - x )2 =  (x - x )2
Range = Max - Min n - 1 n - 1
Range = 37 s2 = 162.67 s = 12.74

Range Variance (s2) Standard Deviation ()
The largest data The average deviation The square root of
value minus the of all data values from variance is standard
smallest data value. the mean. deviation.
Graphically
present the data
The following characteristics of a data set can provide

considerable insight:
Shape Central Variation Distribution Graphical

(Histogram) Tendency (Range, (Normal and Analysis
(Mean, Standard Skewed (Histogram,
Median, Mode) Deviation, Distributions) Box Plot)
Variance)
Histogram
• A histogram is a frequency polygon in which data are grouped into classes.

• The height of each bar shows the frequency in each class.
20
20
12
Frequency
10
10
4
3
1
0
Example: Histogram
For each of 50 placements, the time (in days) it took A histogram is a bar graph in which data are grouped
to place a person in the position was recorded. into classes. The height of each bar shows how
many data values fall in each class.
20
22 26 30 19 22 31 34 29 28 18 20
16 22 31 24 26 36 28 33 36 24
12
Frequency
10
10
26 27 35 14 26 30 33 26 31 36
4
3
28 33 18 26 29 30 22 30 24 31 1
0
10 15 20 25 30 35 40
27 21 28 35 32 28 33 28 23 25
Days
Shapes of Data Sets
Bell Shaped: Normal Distribution. This what we want to see in our Histogram`s
Bell Shaped
Double-Peaked: Shows that data has been gathered from two different sources. These are
two Normal Distributions, but from two different machines, shifts, production lines or
operators. Also, if this is representative of Vendor data, then it is possible that previous
rejected lots are being mixed with new lot or vendor is outsourcing production.
Double-Peaked
Plateau: This type of distribution demonstrates lack of Standard Process.
Plateau
Shapes of Data Sets
Comb: This shape signifies that data with high variation has been mixed with data with low
variation.
Comb
Truncated
Truncated and Skewed: This type of distribution signifies that off spec data has been
omitted from the data set. A clear case of data manipulation.
Skewed
Shapes of Data Sets
Isolated-Peaked: This type of distribution demonstrates the existence of special incidents or

causes in the process. The figure on the left signifies the normal everyday operations of the
process illustrated through the Normal Distribution. The smaller figure on the right
Isolated-Peaked
demonstrates the excess variation in the process on specific days only, due to some
identifiable special condition that does not exist or occur every day. It is a sporadic incident
that occurs once in a while and needs to be addressed through structured Corrective and
Preventive actions. The basic process need not be tampered. Only the specific sporadic
cause needs to be addressed.
What is Normal Distribution?
It is defined as a
continuous frequency
Normal or Gaussian This is the most

distribution of infinite
distribution is a important probability
range (can take any
1 descriptive model that
describes real world
2 values not just integers 3 distribution in statistics
and important tool in
as in the case of
situations. data analysis.
Binomial and Poisson
distribution).
Characteristics of Normal Distribution
It links frequency
distribution to probability
distribution.
In a perfectly centered
Normal Distribution;
mean = median = mode.

Characteristics Has a bell shape curve
of Normal and is symmetric.
Distribution The total area under the

curve is 1 (or 100%).
It is symmetric around the
mean: two halves of the curve
are the same (mirror images).
Properties of Normal Distribution
Since many process outputs have this shape, the properties of

the normal curve can be used to make predictions about the
process population.
Box plot
Box Plot is a graphical tool

Box Plot enables to
to display central tendency Box Plot gives the location
01 (median) and dispersion

(range). 02 understand the distribution
of data (quartiles).
03 of data.
Box Plot indicates imminent

Box Plot enables to get a Box Plot is usually used at
instability in the process,
04 quick comparison of two or

more processes.
05 the initial stages of data
analysis.
06 through illustration of
outliers.
Box plot
* Outlier
*
*
Upper Adjacent Value
Q3 – Upper Quartile (75 per cent) value

Each segment Median

represents 25 per
cent of the data Q1 – Lower Quartile (25 per cent) value
points
Lower Adjacent Value
We can calculate the Inter Quartile Range (IQR): Q3 – Q1

Things to look for in a Box plot
• Are the boxes about equal

or different sizes?
• Do the groups appear

normal or skewed?
• Are there any outliers?
Refer the data sheet –

Pipe.MTW in Minitab
Choose Graph> Box Plot >

Multiple Y’s Simple
Box Plot using Minitab
Interpretation: Boxplot of Week 1, Week 2, Week 3

• Week 1 median is 4.985, and the 9
interquartile range is 4.4525 to

5.5575.
8
• Week 2 median is 5.275, and the
5.6775. An outlier appears at 7.0. 7
• Week 3 median is 5.43, and the
Data
6
6.975. The data are positively
skewed.
• The medians for the three weeks 5
are similar. However, during

Week 2, an abnormally wide pipe
4
was created, and during Week 3,
Week 1 Week 2 Week 3
several abnormally wide pipes
were created.
distribution
Check the data
Box Plot using Minitab
A normal curve originates from a

histogram. A histogram is a Stat > Basic Statistics >Normality Test
frequency distribution chart Null Hypothesis: Data is Normal Alternate Hypothesis: Data
showing the number of times a is not Normal
given value of the parameter we
are trying to measuring occurs. Since the P-value > 0.05 we conclude that the data follows a normal distribution.
Minitab uses the Anderson-Darling

test to determine if a set of data
can be treated as normal data.
Interpreting the P-value:
The P-value is the probability of
getting the particular sample if the
population is normal.
P-value < 0.05 means that the
chance of getting this sample from
a normal population is very small
(less than 5%).
Minitab
Introduction to
Introduction to Minitab
• Minitab is a statistical
software that is widely
used across
businesses and
industries to solve or
analyze complex
statistical problems.
• Minitab provides
convenient features
that streamline your
workflow, a
comprehensive set of
statistics for exploring
your data, and graphs
for communicating
your success.
Introduction to Minitab
• Session Window: The

Session window
displays the results of
your analyses in text
format. Also, in this Navigator Session Window
window, you can enter
session commands
instead of using
Minitab’s menus. Columns
• Worksheet: The
worksheet, which is
similar to a
Data Window
spreadsheet, is where Rows
you enter and arrange
your data. You can
open multiple
worksheets.
Data Window Elements
Edit Last Dialog

Box
Cut, Copy, Paste
Save
Redo, Undo
Project
Open
Project
Worksheet Elements
The Data Entry Arrow

There is a data entry
arrow above row 1,

which indicates the
direction the cursor
will move after the
“Enter” key is
pressed
Column Name Row Remember
The column name row is located just When data is entered into Minitab, the program
above row 1of the worksheet. Column will read it as one of the three formats:
names can be up to 31 characters and • Numeric
may contain space • Text
• Date / Time
Combine data into single column
Stack Data
• Stack Data
• Go to Minitab
• Select: Data>Stack Columns
• Double click C1, C2 and C3 and the
data is put in the variables box
•
Click OK
Combine data into single column
Unstack Data
Minitab can stack data

from to multiple columns
to single column.
Distribute data into different columns
Unstack Data
Qtr Sales Store • Go to Minitab
• Select: Data>Unstack
1 52 Denver Columns
1 36 Boston • Double click C2 and C3
1 63 Seattle and the data is put in the
2 46 Denver variables box
• Click OK
2 32 Boston
2 71 Seattle
3 51 Denver
3 35 Boston
3 68 Seattle
4 50 Denver
4 29 Boston
4 66 Seattle
Distribute data into different columns
Unstack Data
Minitab can unstack data

from single column to
multiple columns.
Data Format for import to Minitab
When a data is imported to Minitab, it expects the data to fulfil

following conditions for a proper interpretation:
Unlike MS Excel,
Columns must
Minitab does not
There are no not contain
have blank rows
1 between the 2 total rows in the
worksheet.
3 special
characters or
column name
symbols.
and row name.
Data Import
At time, you may have to enter or import data into a

Minitab worksheet before you start an analysis.
You can enter data in a Minitab worksheet in the
following ways:
• Type the data directly into the worksheet.
• Copy and paste the data from other applications.

• Import the data from Microsoft Excel files or text files.
After your data are in Minitab, you might need to edit
cells or reorganize columns and rows to prepare the data
for analysis. Some common manipulations are stacking,
specifying column names, and editing data values.
Import Excel file to Minitab
• Export MS Excel file to Minitab.

• Open the excel file from Minitab and click ok.
Import Excel file to Minitab

Projects and Worksheets
In a project, you can perform analyses, and generate graphs. Projects contain one or more worksheets.
Worksheets Columns of data

Graphs Constants
Session window output Worksheet (.MWX) Matrices
Project (.MPX)
Session command history 01 files store the files store the 02 Design objects
following following items:
Dialog box settings Column descriptions
items:
Window layout Worksheet descriptions
Options
Process Capability
What is Process Capability?
Helps to determine if there has

been a change in the process.
2
Process capability is a simple
tool which helps us determine if Also enables the Lean Six Sigma
a process, given its natural What is team to determine the percent of
variation, is capable of meeting
the customer requirements or
1 Process 3 the product/service not meeting
the customer requirement.
Capability?
specifications.
Measuring the Capability
For a given process, Sigma Level is a metric that

indicates how well a process is performing. Let us look at different
scenarios in a process.
2
In Six Sigma, the capability of a process What is Sigma is a statistical unit of measure,
to meet customer specification is
captured by the Process Sigma Level. 1 Process
Capabilit
3 used to denote the value of standard
deviation in a set of variable data.
y?
4
Hence as value of Standard Deviation () decreases
the Process Sigma Level increases.
What is Process Control?
A Process is in
statistical control
when it is stable...
100% of the
individual data
values are within the

spread of natural
variation (+-3) of
the process.
And, therefore,
predictable...
What is “Out of Control” process?
An unstable
process...
100% of the
individual data
values are NOT
within the spread of

natural variation
(+3) of the process.
Few data values fall
beyond the +3
limits and are
referred to as …is unpredictable
“OUTLIERS”.
Common Cause vs. Special Cause
Type of variation Characteristics
Inherent to the process

• Expected
COMMON CAUSE • Predictable
• Normal
• Random
Not always present

• Unexpected
SPECIAL CAUSE • Unpredictable
• Not normal
• Not random
Common Cause vs. Special Cause
Only "COMMON" causes of variation are present in a Stable Process.

This variation is Random and Routine.
"SPECIAL" causes of variation are present in an Unstable Process.

This variation is Non-Random and Sporadic
Some points in time are exceptional when compared to the rest.
Process Control vs. Process Capability
Process Control = Stability over time.

Process Capability = Ability of a stable process to meet specifications.
Lower Upper
Specifica Specificat
tion Limit ion Limit
Examples of Stable and Capable processes
Process is Stable and Capable

Process is Stable but not Capable

Control Limits vs. Specification Limits
Control Limits are statistical bounds (the natural bounds of the

data) used to determine process stability.
Statistically Control Limits are equivalent to +3.
Control limits are determined by the data (voice of the process).

Specification Limits are applied to individual measurements.

Specification limits are decided by people (voice of the customer).
Methods to Calculate Process Capability
PROCESS CAPABILITY
When the data is When the data

01 Cp / Cpk PPM / DPMO 02
Continuous is Discrete
Determine Process
Capability Variable Data
Stable and Capable Process
Process capability exists when VOC and VOP are combined
LSL USL
VOC VOP
LSL USL
 ☺ 
A stable process
provides the most
reliable estimates of
process capability.
A process is said to
be capable when the

± 3 points of the
distribution of
individual
measurements are
contained well within
the specification
limits.
6s
A B
What can be said about LSL US L LSL US L
the capability of these

C D
four processes?
LSL US L LSL US L
How capable is the process?
6s 6s 6s
LS L Capable Process US L LSL A Very Capable Process US L L S L Highly Capable Process US L

Steps for evaluating process capability for variable data
Estimate the
Assure the
average and
data is
standard
normally
deviation of the
distributed.
process.
Determine the
process’ Quantify process
potential performance.
capability.
Process variation vs Specification
Process Variation:
At + 3 that is
99.73% of the time, Let us assume that for
the process is
USL = 182
LSL = 160
a normally distributed
producing products
stable process, the

that falls between average is 178.6 and
167.8 and 189.4. the standard deviation
is 3.6. The process
However, as per target is 171,
customer USL = 182, LSL = 160.
specification, we 167.8 178.6 189.4
want all product to
fall between 160 X
and 182. x - 3 x - 3
Determine the potential process capability
LSL USL
Cp= 1
Process is just about meeting the specification but centering needs attention.
Cp> 1 Process variation well under control. Larger the Cp, better the process.
Cp < 1 Process variation exceeds specification in this case. Process is producing defects.
Determine the potential process capability
The Cp index USL - LSL

reflects the
Cp =
6
potential of the
For the given example,
process if the
the potential process
average were
capability Cp is 1.01.
perfectly centered
between the 182 - 160
Cp =
specification limits. 6
Quantify actual process performance (Cpk)
USL = 182
LSL = 160
To estimate the
percentage of
product / process
that falls outside
the specification
limits, we compute 167.8 178.6 189.4
Cp (upper) and Cp
(lower).
z lower is the number of z upper is the number of
standard deviations between standard deviations between
the Process Average and the the Process Average and the
Lower Specification Limit. Upper Specification Limit.
The Cp index
Z = USL - X Z = X - LSL
reflects the
potential of the
(upper)  (lower) 
process if the
average were
perfectly centered Minimum of Z (uppe&r) Z (lower)
between the C = _________________________________
specification limits. PK
3
Z = 182.0 178.6 Z = 178.6 160
(upper) 3.6 (lower) 3.6

The Cp index
reflects the
potential of the
process if the Z = 0.94 Z = 5.17
average were (upper) (lower)
perfectly centered
between the
specification limits.
Cpk = 0.94 / 3 = 0.31
LSL USL LSL USL
Unlike the Cp,

the Cpk index
takes into
account off-
centering of the
process. The 6 6
larger the Cpk
CP = 1 CP = 1
index, the better.
CPK = 1 Cpk < 1
What is Sigma?
Lower Specification Limit
Upper Specification Limit

“Sigma”
(Standard Plus or minus one standard

deviation around the mean is about
deviation) is
68% of the total process output.
a measure
of variation.
± Standard Deviation (“Sigma”)

What is a Six Sigma process?
Lower Specification Limit
Upper Specification Limit

If we can squeeze
six standard
Then 99.99966% of our
deviations in
“opportunities” meet customer
between our
requirements!
process average
and the customer’s
requirements…
6 5 4 3 2 1 1 2 3 4 5 6
• Conceptually, for Normal

Distributions, the Sigma
LSL USL
Level is equal to the number
of std deviations that can be
fit between mean and either
specifications.
• Since in this case we can fit

only one std dev between
mean and specs, the sigma
level is 1 sigma.
• Correspondingly as per
property of normal
distribution, the percentage -3 -2 -1 1 2 3
MEAN
of output meeting customer
requirement is 68%
In this case , we
can fit 3 std dev
between mean and

secs, so sigma
level = 3 sigma.
Percentageof o/p
meeting customer
req = 99.73%
In this case , we Meeting Customer

can fit 6 std dev Requirements = 99.99967%
between mean and

secs, so sigma Defects = 100 – 99.99967
level = 6 sigma.
Defects = 0.00034%
Percentageof o/p
meeting customer DPMO = 0.00034*10^6/100 = 3.4
req =99.99967% 6sigma = 3.4 DPMO
Fundamentals of Process Improvement
So, area under

the curve within
specification increases
Reduce Standard
and area under the
Deviation
curve outside of
specification
decreases.
Quiz: As sigma value
goes down; Sigma As a result, Defect
Level goes up. –True / decreases.
False (True)
As we keep reducing
As a result, more and
value of std dev; we
more area under the Process Capability
can fit more std
curve start falling Increases
between Mean and
within specification
Cust Spec.
Checking stability for variable data in Minitab
• To identify the average and

standard deviation of a
process, we first need to
check the distribution i.e. if it
is normal distribution?
• Let us refer the data sheet –

Piston.MTW in Minitab for
the same.
• We check the normality of
the data.
• Choose Stat> Basic
Statistics> Normality Test.
Checking stability for variable data in Minitab
The Anderson-
Darling test's p-value
at 0.892 indicates
that the data follows
a normal distribution.
Determine Process
Capability Discrete Data
A defect refers to a specific quality
characteristic for an item, such as a A defective refers to whether the
tear, scratch, or discoloration. A overall status for an entire item is
defect indicates that the product acceptable or not. Therefore, the data
result is not entirely as intended. is often of the form yes/no, pass/fail,
or defective/non-defective. Because
For example, analysts at a textile
an item may have many quality
company inspect towels for tears,
characteristics, it may have many
pulls, or improper stitching and record
defects, but the item itself is either
the number of defects. Each towel
defective or not defective.
can have 1 or more than 1 defect, Defect Defective
such as tear; pull; stitching error etc. For example, an analyst inspects a
sample of bulbs from a supplier and
For example, a car is one finished unit
counts the number of broken bulbs in
in a process. A car also contains
each sample.
many different areas that are
assembled to create a finished Again, using the car scenario, this

vehicle. Any of these areas – the means that 10 cars can have a
seats, the dashboard, the engine, maximum 10 defective units, because
the exhaust system, etc. – could each car represents one unit.
have defects.
Attribute Data - DPMO

Example
Invoice Invoice Invoice Invoice Invoice

Amount $: ☺ Amount $: ☺ Amount $: ☺ Amount $: ☺ Amount $: 
Acct Num:  Acct Num: ☺ Acct Num:  Acct Num: ☺ Acct Num: 
Quantity: ☺ Quantity: ☺ Quantity:  Quantity: ☺ Quantity: 
Date: ☺ Date: ☺ Date: ☺ Date: ☺ Date: ☺
Invoice Invoice Invoice Invoice Invoice

Amount $:  Amount $:  Amount $: ☺ Amount $: ☺ Amount $: ☺
Acct Num: ☺ Acct Num:  Acct Num: ☺ Acct Num: ☺ Acct Num: ☺
Quantity: ☺ Quantity: ☺ Quantity: ☺ Quantity: ☺ Quantity: ☺
Date:  Date: ☺ Date:  Date: ☺ Date: ☺
Units = Defective =
Defects = Defect Opportunities =
Attribute Data – PPM and DPMO
Department: Purchase
Defect: Incorrect entry
Total Defects: 56
Unit: Each MIS report (monthly)
No of units inspected: 5,000
DPU (defects per unit) = Total Number of defects /

Total number of units inspected
DPU = 56 / 5000 = 0.0112
PPM = DPU * 10^6 = 11,200

Attribute Data – PPM and DPMO
Department: Loan application processing department
Defect: any field updated incorrectly in system Total Number of Defects

DPO =
Total number of units inspected *
Defect opportunities: Name incorrect;

DOB incorrect; Mobile number incorrect; Address incorrect Opportunities per unit
No of Opportunities per form: 4
Unit: Each form processed in a month DPO = 67 / 5,000 *4 = 0.0033

DPMO = DPO*10^6 = 3,350
No of units inspected: 5,000 Total Defects: 67
No. of defect opportunities per sample: 4

Sigma and DPMO table



Exercise for Calculation of DPMO
Insert Pour, Rise &

Chemicals De-mold Pad F o a m Pad
Components cure
Opportunities per Pad 2 3 1
Opportunities Per 100 Pads
Number of Defects (in 100 Pads) 7 6 9
Defects Per Opportunity (DPO)
Defects per Million Opportunities(DPMO)

Savings
Estimating Potential
Estimating Potential Savings
What is cost avoidance?
Refers to strategies that prevent a

What is cost savings?
business or organization from
spending unnecessary money in
Cost savings are expense
the future. Since the expenses Two ways to save an
mitigation strategies that lower
saved using cost avoidance are organization money are existing spending or debt
usually hypothetical, they don't cost avoidance and cost quantities. Cost savings are
typically appear in documents savings. Although these usually tangible and
such as a budget or financial two concepts are similar, measurable. Cost savings
statement. If a cost avoidance
they also include measures will appear in
measure doesn't work, it might
appear on a financial statement as
important differences that documents such as your budget
can impact your budget. and financial statements since
the additional expense that you
they affect existing line items,
were unable to avoid.
when comparing one
By preemptively solving the need
accounting period to the next.
for future spending, you can
reduce future financial pitfalls
and challenges.
Example
Examples of cost avoidance

Examples of cost savings
A manufacturer obtains a new
piece of equipment that must be
A construction company has
shut down and serviced on a
provided concrete work for
biweekly basis. After analyzing the
many years. Recently, their cost
company's production schedule,
of cement has increased due to
they notice a span of a few hours

higher demand and market
at night, every two weeks, when
conditions. A company
almost no units are being Example representative negotiates a
produced. Since this is already
lower cost with the supplier on
down time in the company's
the condition that they will do
manufacturing flow, they schedule
business together long-term.
maintenance for these hours
This is an example of cost
instead of shutting down when
savings because it lowers an
demand is high. This is an
existing, documented business
example of cost avoidance,
expense.
because they are anticipating and
avoiding future expense.
Measure Phase Toll Gate Review
• The team has defined the operational definition of the CTQ

and is understood by all involved in data collection
• The team has agreed upon the key measurements and come
up with a baseline measurement of the process performance.
• The team has analyzed measurement systems and identified

any issues that might contribute to the analysis errors
• Where possible, the team has corrected the measurement

system to remove the error risks
• The team has measured the process data in terms of Central

tendency and Dispersion
• The team has validated the data distribution and calculated

the process Sigma level.
• The sponsor or champion has reviewed and signed off on all

elements of the measure phase.
Measure Phase Recap
• Data Types – Continuous Data & Discrete Data

• Collect the data
• Operational Definition
• Data Collection Plan
• Validate the Measurement System
• Gage R&R
• Attribute Agreement Analysis

• Measure the Data
• Measurements of Central Tendency
• Measurements of Dispersion/ Variation
• Graphically present the data
• Histogram
• Box Plot
• Check Process Stability
• Calculate Process Capability – Cp/Cpk & PPM/DPMO
• Estimate the Potential Savings
Questions
The hierarchy of Control Limits Vs Customer Specifications for a process

that is both stable and capable should be?
a. Mean; UCL; USL; LCL; LSL c. USL; UCL; Mean; LCL; LSL
b. USL; LSL; Mean; UCL; LSL d. UCL; USL; Mean; LSL; LCL
Suppose the test scores of 600 students are normally distributed with a
mean of 76 and standard deviation of 6. What is the approx. number of
students scoring between 70 and 82?

a. 272 c. 260
b. 408 d. 136
What is the defect?

a. A feeling that the process is causing a problem
b. Something we should ignore if possible
c. Something that customer is paying for.
d. A measurable characteristic not conforming to a customer requirement
Thank you
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Lean Six Sigma Green

©2019 Grant Thornton India LLP. All rights reserved.

• VOC to CTQ • SIPOC / COPIS

Concept VOC - Project Process

• Six Sigma and Lean Overview • Business Case

• Types of Variation (Common cause

• Types of Data • Gage R & R % Study • Six Sigma Calculation

Lean and Analyse – Day 3

• Fishbone • Introduction to Hypothesis

Idea Solution Risk Solution Pilot and

• TRIZ • FMEA with example • Pilot

• Why Control? • Process Management System

Dr. Walter Shewhart (1891-1967)

Dr. W Edward Deming (1900-1993)

Dr. Joseph M Juran (1904-2008)

Dr. Kaoru Ishikawa (1915-1989)

Philip B Crosby (1928-2001)

What does Quality Mean?

Detecting and correcting Preventing defects in the first place

engineer with Motorola.

Beginning Focus on how

Motorola gained a return of

Scope of six sigma

Belt exam certification became changed from

Reduce Variation Reduce Defects Delighting Customer

Reduce Cost Reduce Cycle Time

Sigma Level Part per Million (PPM)

Mumbai's Dabbawalla are at

99% Good (2.8 Sigma) 99.99967% Good (6 Sigma)

Metric Benchmark Tool Commitment

• A metric that • A benchmark for • A practical application • A commitment to

Standard Process Management

• The Greek symbol • A statistical measure • View processes/

Master Black Belt

• Create a vision and market “change”; Become a

• Be open to changes in project definitions.

• Provide resources and helps resolve conflicts.

• Accountable to the Apex Council.

• Owns end-to-end process.

• Sets goals for projects.

• Project review: timeline and project is on track.

• Responsible for holding the gains.

Six Sigma Coach

• Resolve team conflicts.

• Estimate, measure and validate savings.

• Facilitate to keep team focused on the project objective.

Project Team Leaders

• Good knowledge of product, process, customer.

• Willing to work in teams.

• Time to work on projects.

• Active in Data collection.

• Responsible for improvement.

Define Project D M A I C Integrate into DailyWork

DMADV Analyze Analyze

Collect the VOC Determine the CTQ

Develop the Project Charter 4 3 Map the High Level Process

At the end of the DEFINE phase you will be able to:

Create the Project Charter

Translate the VOC into CTQ