Description
Six Sigma
Six Sigma Notes Introduction • • • Six Sigma puts the customer first and uses facts and data to drive better solutions. 3 things
A. Reducing cycle time B. Reducing defect C. Improving customer satisfaction D. Tool to eliminate variation • • ? –standard deviation (Describes how much variation exists in the given set of data) Provide a consistent way to measure and to compare different processes
6 Important points a- Genuine Focus on Customer b- Data and Fact Driven Management ( which info needed, how to use it to maximum benefit ) c- Process is where action is d- Proactive Management e- Boundaryless collaboration ( teamwork across organizational lines ) f- Drive for perfection ( Tolerate Failure ) Roles for Manager and Employess Black Belt • • Most critical role. Full-time person dedicated to tackling critical change opportunities and driving them to achieve results. The Black Belt leads, inspires, manages, delegates, coaches, and “baby-sits” colleagues and becomes almost expert in tools for assessing problems and fixing or designing processes and products. The Black Belt must possess many skills, including strong problem solving, the ability to collect and analyze data, organizational savvy, leadership and coaching experience, and good administrative sense. Must be adept at project management—the art and science of getting things done on time through the efforts of others.
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Master Black Belt ( Full time )
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serves as a coach and mentor or consultant to Black Belts working on a variety of projects. In most instances, the MBB is a real expert in Six Sigma analytical tools, often with a background in engineering or science or an advanced degree in business. Change agent role ( also par time trainer ) . ensure that the Black Belt and his/her team stay on track, complete their work properly, and pass “tollgates”—key tasks for each step of the Six Sigma improvement process. Critical role - sustaining the momentum of change, cost savings, improved customer experience. Conduct training/communication sessions. Develop tools and teaching materials.
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Green Belt • • trained in six sigma skills, has a “real” job and serves as either a team member or a part-time Six Sigma team leader. bring the new concepts and tools of Six Sigma right to the day-to-day activities of the business.
Champion And/Or Sponsor • • • executive or a key manager who initiates and supports (sponsors) a Black Belt or a team project. Having a champion is very important. Person ultimately accountable. Generally member of leadership council or steering committee Responsibilities o Ensure that projects stay aligned with overall business goals and provide direction when they don’t o Keep other members of the leadership team informed on the progress of projects o Provide or cajole needed resources, such as time, money, and help from others, for the team o Conduct the tollgate reviews o Negotiate conflicts, overlaps, and linkages with other Six Sigma projects • Also gets less training for preparation, hence can be a weak link.
Implementation Leader • This individual orchestrates the entire Six Sigma effort. Is often at the corporate vice president level, reporting directly to the CEO, president, or another top executive. significant company experience and strong leadership and administrative abilities. drive Six Sigma thinking, tools, and habits across the organization and to help the effort reap financial and customer benefits. primarily responsible for executing implementation. temporary position
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Leader ship team - commitment and support . Business and operational goals.
Overall Roles played by both GB and BB Coordinate Team Activities • a. Track Team Goals and Plans – b. Actual Work – c. Manage schedule
• d. Administrative duties e. Monitor and Foster Team development Represent the Team to Organization • a. voice of the team . b. Contact pt bt team and organization Participate With the Team
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a. Contribute your knowledge and expertise b. Work at making team work well c. Commitment to teams purpose and success d. Listening to others
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Requires shift from function oriented to process oriented thinking
By following this process, a flexible but powerful set of five steps for making improvements happen and stick, the team works from a statement of the problem to implementation of a solution, with lots of activities in between. 1. Identifying and selecting projects b. ( meaningful and manageable ) a. Project should give real benefit to customer – small enough to be done Identify high priority problems and give them preliminary boundaries c. Select champion/ sponsor
2. Form the Team a. Black belt, green belt selection b. Select people who have good working knowledge of the situation, and also not part of the problem 3. Develop the Charter ( Project Charter ) a. Written guide to problem or project b. Drafted by Champion and refined by the team. Changes over the DMAIC project c. Charter Contains i. Business Case (reason for pursuing) - list benefits E.g. CTQ loan processing time – reduction will increase no of loans, acquire more customers , higher business revenue, customer satisfaction, decrease costs, reduction in cycle time ii. Financial Benefits – intangible and tangible, any expenditure. Identify savings 1. Direct , Opportunity Cost , Cost Avoidance iii. Problem Statement Address only CTQ , short clear, what and since when is the problem and how much. Describe the pain points Key Consideration – a. Is the problem based on fact and not guess b. can data be collected to verify and analyze. c. Problem statement broad or narrow. Would customer be happy iv. Goal Stmt 1. Address only CTQ, short clear. Improve what and by how much . eg: Reduce loan processing time from 9 to 3 days 2. Define the improvement to be accomplished. 3. Reduce, eliminate, control increase v. Scope 1. Define start, end, cost and man power constraints. Define areas to be covered and not to be covered eg: car loans for specific state only 2. Which process to focus on. What resources available 3. Time commitment from team members. vi. Team Roles and responsibilities ( team communication imp ) vii. Milestones ( Time lines are must, review on each recommended ) 4. Training the Team a. Focus on DMAIC process and tools 5. DMAIC and implement Solutions a. DMAIC teams are responsible for implementing their own solutions. b. develop project plans, training, pilots, and procedures for their solutions and are responsible for both putting them in place and ensuring that they work—by measuring and monitoring results—for a meaningful period of time 6. Handing off the Solution
a. The hand-off is sometimes marked by a formal ceremony in which the official owner, often called “Process Owner,” of the solutions accepts responsibility to sustain the gains achieved by the team. 7. Advantages of DMAIC a. Measuring the problem ( validate the problem with facts ) b. Focusing on the customer ( external customer very important ) c. Verifying root cause ( prove the cause with facts and data ) d. Break Old Habits ( creative new solutions ) e. Managing Risks ( Test and perfect solutions , bug fixing ) f. Measuring results ( follow up – verify real impact ) g. Sustain - ( nurture and support , make change last ) Tools for Generating Ideas and Organizing Information Brainstorming • The basic purpose of brainstorming is to come up with a list of options for a task or a solution—usually a longer list that is shortened into a final choice. – generally starting point
Affinity Diagram • • • An affinity diagram is a grouping of ideas or options into categories. A tool used to organize and present large amounts of data (ideas, issues, solutions, problems) into logical categories It’s a common follow-up to brainstorming and helps synthesize and evaluate ideas.
High Level Process Map – SIPOC FlowChart (Process Map) • • A flowchart is used to show details of a process, including tasks and procedures, alternative paths, decision points, and rework loops. Can be depicted as an “as-is” map showing a process as it currently works or as a “should-be” map showing how it ought to work.
Fish Bone Diagram (Cause and Effect) • • • used to brainstorm possible causes of a problem (or effect), and it puts the possible causes into groups, or affinities; Causes that lead to other causes are linked as in a structure tree. The value of a cause-and-effect diagram is to help gather the collective ideas of a team on where a problem might arise and to help the team members think of all possible causes by clarifying major categories. Will not tell you the exact root cause, but an idea on were to focus on and further root cause analysis
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Tools for Gathering Sampling Operational Definition • Measurement is meaningless if people don’t count and/or categorize things the same way. An operational definition is a clear, detailed, and understandable description of how to interpret data or events in your process, allowing you to gather data consistently. Customer focal point of six sigma activity collect external customer input, assess and prioritize requirements, and provide ongoing feedback to the organization . VOC tools include many simple and sophisticated market research methods, requirement analysisconcepts, and newer technologies, such as data warehouses and data mining.
VOICE of Customer Methods • • •
CheckSheet and SpreadSheet ( collect organize data ) • • To ensure that the right data is captured, with all necessary facts included, such as when it happened, how many, and what customer. Stratification factors To make data gathering as easy as possible for the collectors.
Measurement System Analysis Methods which make sure that measure are accurate and reliable. Measurement itself can be a cause of issues in process. Value Added and Non Value Added Activities • • Assess process based on value added activities. Business processes tend to grow over time, and usually the added tasks— inspections, extra features, analysis, reports—turn out to have little or no benefit to people who pay the bills. In value/non-value-added analysis, each step in a detailed process map is assessed on its real value to external customers. (“Would they pay us to do this?”) Never possible to eliminate all non-value-adding activities; are in place to protect the business or to meet legal requirements. Eliminate things which are unnecessary and drain on the process.
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Define – Measure – Analyze – Improve -- Control Oppurtunites – Symptoms – Causes – Solutions -- Sustain
Define Phase –
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Understand who the customer is ( internal & external ) e.g.- client, mgmt ( if cost reduction), government Understand customer requirement ( true needs ) ( regardless whether process is capable or not ) Convert customer requirement (VOC) into CTQ. (Which are specific and measurable). Customer requirements are generally high-level, vague and non-specific VOC – surveys, visits, interview, questionnaires
? How does customer view the process , what does he looks at to measure performance ? What are the needs Voice of business – customers – employees –stake holders -society Pages to refer from - Define and Measure pdf – 9,
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Which customers are focal points. Also segment customers so that research can be focused on the most imp ones only eg:- revenue wise, location , size of the deal ( define each segment clearly ) Narrow the list of segments on the basis of o o A. marketing data B. Existing customer feedback B. Business strategy
VOC data organized – quality issue identified – statement developed – CTQ defined –validate with customer Translate Customer Needs into Requirement VOC Call always on hold or transferred to wrong person Bills generated at different times Takes to long to hire Key Issue Talk to right person Consistent billing Speed up hiring Requirement Correct person correct time Bills on same day of month Receives person at specified date
CTQ types a. Clear / Complex a. ( e.g. Faster recruitment - CTQ – cycle time , cheques clearance, productivity s/w eng ) %people on the bench Visa processing time can be broken down into processing time for different visa types or visas for different countries
b. Clear / Vague a.
b. The dealers in a bank have complained about loan disbursement cycle time. This CTQ can be broken down into disbursement cycle time of the branch office and corporate office c. Unclear/ Vague a. An associate complains that a computer in not operating satisfactorily.Understand the customer’s requirement better to fulfill his needs. It may turn out to be computer speed, monitor size, internet speed, etc
b. An employee is not happy with the Travel reimbursement process. His requirement could be in terms of lesser documentation, shorter timer frame, more accurate reimbursements etc CTQ - should be Simple – Measurable – Attainable – Relevant – Timebound CTQ’s – relate to problem statement CTQ – Tools • Drill Down Tree Break down of main CTQ, requires domain knowledge, usefull if CTQ is complex only
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Pareto Rule ( 80/20 rule )
Used in conjunction with Drill Down Tree, prioritize CTQ’s were data is available QFD or House of Quality -- a tool that can aid in meeting the needs of customer by translating Customer Needs into Product or Process Specification ------Six Sigma charter developed and reviewed by champion--------------------------High level process map --------------------
Define Phaae
KANO Model
One-dimensional ( 45 degrees ) Customer satisfaction directly proportional to how fully functional the product/service is. More satisfied – more functionality, less satisfied – less functionality Eg: 10% improvement in service – 10% increase in customer satisfaction. More miles per liter –
Must Be Customer less satisfied when less functional, but not more satisfied when prod is more functional. E.g.:- clients of service bureau expect 99.9% system uptime. Satisfaction will not improve when up-time increase, but downtime severe satisfaction Delighter • • • • curve indicates the situation in which the customer is more satisfied when the product or service is more functional, but not less satisfied when the product or service is less functional. Eg:-Discovering some unique features in Microsoft Office would increase customer satisfaction at the point they were ready for the features. Over time “delighters” frequently become “must be” requirements. 2 types of needs Indifferent --Features to which the client is indifferent. For example, advanced features on a VCR may appeal to a very small segment of customers who understand how to use them. The majority of customers may be indifferent to them Reverse - These are features that actually cause dissatisfaction . eg:- hot water in hotel room
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-------------------------- Process Mapping --------------------------------------Activities which take one or more i/p(I) --- processing variable (P) interact with Input and produce o/p(O) of value to customer. Suppliers - supply Inputs. Can be individuals, some other process, departments, functions, etc., internal or external to the process in question. Customer – recipients of the outputs, internal or external to the process High Level Process Map – SIPOC • • • • • • • Supplier – Input – Process – Output – Customer ( physical movement) Customer-output-process-input-supplier ( our thinking ) used in the Define phase of DMAIC and is often a preferred method for diagramming major business processes and identifying possible measures. Used to help define the boundaries and critical elements of a process Overview of the project w.r.t -- to CTQ’s Use Brainstorming And Affinity Techniques To Identify All The Outputs, Customers, Suppliers And Inputs Identify The Primary Outputs, Customers, Suppliers And Input
E.g.:- Customer – Loan Application – Loan processing credit rating – processed loan in time – customer Customer – Registered complaint – handling – resolved – customer. (Reduce time taken to resolve Customer complaints) Refer to page 81
--------------- Measurement Phase-------------------------• Identified Key Measures (KPIVs and KPOVs) Key Process Input variables Key process output variables
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Developed A Data Collection Plan For The Process Executed The Plan And Document Results Process Variation Displayed With Appropriate Charts And Graphs Calculated Baseline Sigma Performance
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I/P – process – o/p ( Process ) ( supplier and i/p ) o/p – process – i/p ( measure ) ( o/p and customers ) 5 Step Data Collecting process a. Clarify Data Collection Goals. ? Decide Why You Are Collecting Data ? Decide What Data You Need To Collect ? Decide How The Data Will Help You b. Develop Operational Definitions And Procedures ? Define What You Are Trying To Evaluate ? Decide How You Will Attach A Value To What You are Trying To Measure ? Decide If You Need To Collect New Data Which category of data to be collected? 1. Cost, cycle time, defect/error rates, value-non-value add
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ii. Is any existing data avl, if yes is it enough iii. Will current data meet the demands of process. If So, Decide How You Will Collect The Data Decide How You Will Record The Data Determine The Period Of Time You Will Study Estimate How Many Observations You Will Need
Characteristic Trying To Measure. Remove ambiguity. Everybody should have same understanding i. Results same even if anybody measures. ii. What and how to measure iii. Eg:- Computer down time ( first define what exactly it is ) iv. Eg:- On time departures c. Plan For Data Consistency And Stability ? Factors That Could Cause The Measurement Of An Item To Vary(MSA) ? Ways To Reduce The Impact Of Those Factors ? make sure that there are no Errors due to the process of data collection and capture the true variation of the process d. Begin Data Collection
? Operational Def – description which mentions How To Get A Value For The
? Train everybody who collects data. ? Communicate the what and why To The Data Collectors And Process
Participants. ? Procedure should be error proof. ? Confirm understanding of operation definition e. Continue Improving Measurement Consistency ? Make Sure periodically that The Measurements Are Stable. ? Check To Make Sure The Measurement Procedures Remain Consistent Types of Data Numerical (variable or continuous, attribute or discrete) Verbal Data Continous – variable can take any value within a given range Eg:- time for which n/w down ,amount of cheque Salary Discrete -- The variable can take only some values within a given set of values Eg:- Gender, Bill, Handset . Discrete (count) No of customer (day), no of errors (months) Creating a Standard Form And Defining Data Collection Procedures: ? Sure That Different People Will Collect the Data In The Same Way ? It Makes It Easier To Keep Track Of Data Sampling Process of Collecting only a portion of the data that is available or could be available, and drawing conclusions about the total population (statistical inference) Sample when - Collecting all the data is impractical or too costly, Measuring high volume process Sample not when – subset may not accurately depict –lead to wrong conclusion. Population is itself small Representative Sample – all parts of the target population are represented equally Customer’s view is captured . understand special characteristics, design proper sampling strategy , select randomly
Measurement System Analysis • Identifies how much variation is present in the measurement process • Understanding measurement variation is necessary for identifying “true” process variation and maximizing true Y improvements • helps direct efforts aimed at decreasing measurement variation • Excessive measurement variation distorts our understanding of what the customer feels • risk of decision based on inaccurate picture of process • Address Measurement System Variation Before Collecting Data To Analyze Process Variation
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Accuracy – the differences between observed average measurement and a standard Repeatability – variation when same person repeatedly measures the same unit with the same measuring equipment Reproducibility – variation when two or more people measure the same unit with the same measuring equipment Stability – variation obtained when the same person measures the same unit with the same equipment over an extended period of time Linearity – the consistency of the measurement system across the entire range of the measurement system
Now Convert Data into Information
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I/p, O/p, process – fluctuate ( which is variation ) Variation is voice of process. Common Cause No undue influence by 6M’s Expected, Inevitable, Random, performance ca be predicted Not desirable, can be avoided, Not random, performance cannot be predicted
Special Cause
Undue influence of one or more 6M’s
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Man power, Mother nature, Materials, Method, Measurements or Machine When a process operates under a common cause alone, it is said that the process is stable or under control o Data from such process will follow a statistical law or rule called statistical distribution. ( single peak, no outliers, no abrupt ending ) When a process operates under special cause over and above the common cause, it is said that the process is untable or out of control When a process operates under the common cause alone, and the resultant variatition is well within customer tolerance, the process is said to be capable Statistical tools for measuring the process o Dot-plot, Histogram, Time series plot
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Random pattern = stable process, non-random* = unstable
Deriving meaning our of data
Specifications are the VOC. VOC vs Voice of process
Basically safe distance from both the limits Understand the variation Tools for understanding variation --Dispersion or variation is spread of data---
Histogram Depicts – how often different values offer. In histogram look for -- Distribution (whether centered correctly) -- Spread or variation (wide or narrow) -- Outlying points or irregularities and shape of distribution. Common shape of frequency diagram
Pg 169, pg 170 Irregularities detected by Frequency Diagram
Data type Dictates – how much variation can be seen. Continuous data – most information about variation in process Discrete data – less information about variation in process.
Page – 179
Measures of central tendency
Pareto Diagram A Data Display Tool That Breaks Down Discrete Observations Into Separate Categories For The Purpose Of Identifying The “Vital Few”
Principle – Few categories most of the problem, assure other category is small. Fix most important BAR CHARTS Control Chart - (Recognizing sources of variation) To Monitor, Control, And Improve Process Performance Over Time By Studying Variation And Its Source What does it do?
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Focuses Attention On Detecting and Monitoring Process Variation Over Time Distinguishes Special From Common Causes Of Variation, As A Guide To Local Or Management Action Helps Improve A Process To Perform Consistently And Predictably For Higher Quality, Lower Cost, And Higher Effective Capacity Provides A Common Language For Discussing Process Performance
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To improve any process -- useful to understand the variation. Variation is the voice of process.
What is Sigma Scale? A Measurement Scale Which Compares the Output of A Process To Customer Requirements 6 sigma -- 3.4 -- Defect per million opportunities. Unit – Item produced or processed Defect - any event which does not meets specification Defect opportunity – any event which can be measured and does not meet customer requirement. Defective – unit with one or more defects. Calculating process sigma
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Make Sure Opportunities Per Unit Stay Constant Before And After Improvement – It Is Critical To Compare “Apples-To-Apples” When Comparing Before And After Results
• Yield = probability of going through all without a defect. First Pass performance is used to calculate process sigma since ? Defects Once Produced Add Waste And Cost (Some Costs Are Easy To Quantify And Some Not ) ? Even The Best Inspection Processes Cannot Catch All Defects ? The Payback Is Generally Bigger To Keep Defects From Occurring
Compare Actual Project Y performance to Customer CTQ’s. Z Is A Unit Of Measure That Is Equivalent To The Number Of Standard Deviations A Value Is Away From The Mean Value
? Process Capability –
• A measure in “Standard Deviation Units (Z)” of how far the process mean is from the performance standard. • How far (in standard deviation units) is the mean from the specification (Lines A+B)
Reduce process variation (control case) Reducing variation – Reduces defect. Shift the process mean (technology case)
Reducing variation will also reduce defects.
doc_927642640.doc
Six Sigma
Six Sigma Notes Introduction • • • Six Sigma puts the customer first and uses facts and data to drive better solutions. 3 things
A. Reducing cycle time B. Reducing defect C. Improving customer satisfaction D. Tool to eliminate variation • • ? –standard deviation (Describes how much variation exists in the given set of data) Provide a consistent way to measure and to compare different processes
6 Important points a- Genuine Focus on Customer b- Data and Fact Driven Management ( which info needed, how to use it to maximum benefit ) c- Process is where action is d- Proactive Management e- Boundaryless collaboration ( teamwork across organizational lines ) f- Drive for perfection ( Tolerate Failure ) Roles for Manager and Employess Black Belt • • Most critical role. Full-time person dedicated to tackling critical change opportunities and driving them to achieve results. The Black Belt leads, inspires, manages, delegates, coaches, and “baby-sits” colleagues and becomes almost expert in tools for assessing problems and fixing or designing processes and products. The Black Belt must possess many skills, including strong problem solving, the ability to collect and analyze data, organizational savvy, leadership and coaching experience, and good administrative sense. Must be adept at project management—the art and science of getting things done on time through the efforts of others.
•
Master Black Belt ( Full time )
•
serves as a coach and mentor or consultant to Black Belts working on a variety of projects. In most instances, the MBB is a real expert in Six Sigma analytical tools, often with a background in engineering or science or an advanced degree in business. Change agent role ( also par time trainer ) . ensure that the Black Belt and his/her team stay on track, complete their work properly, and pass “tollgates”—key tasks for each step of the Six Sigma improvement process. Critical role - sustaining the momentum of change, cost savings, improved customer experience. Conduct training/communication sessions. Develop tools and teaching materials.
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Green Belt • • trained in six sigma skills, has a “real” job and serves as either a team member or a part-time Six Sigma team leader. bring the new concepts and tools of Six Sigma right to the day-to-day activities of the business.
Champion And/Or Sponsor • • • executive or a key manager who initiates and supports (sponsors) a Black Belt or a team project. Having a champion is very important. Person ultimately accountable. Generally member of leadership council or steering committee Responsibilities o Ensure that projects stay aligned with overall business goals and provide direction when they don’t o Keep other members of the leadership team informed on the progress of projects o Provide or cajole needed resources, such as time, money, and help from others, for the team o Conduct the tollgate reviews o Negotiate conflicts, overlaps, and linkages with other Six Sigma projects • Also gets less training for preparation, hence can be a weak link.
Implementation Leader • This individual orchestrates the entire Six Sigma effort. Is often at the corporate vice president level, reporting directly to the CEO, president, or another top executive. significant company experience and strong leadership and administrative abilities. drive Six Sigma thinking, tools, and habits across the organization and to help the effort reap financial and customer benefits. primarily responsible for executing implementation. temporary position
• • • •
Leader ship team - commitment and support . Business and operational goals.
Overall Roles played by both GB and BB Coordinate Team Activities • a. Track Team Goals and Plans – b. Actual Work – c. Manage schedule
• d. Administrative duties e. Monitor and Foster Team development Represent the Team to Organization • a. voice of the team . b. Contact pt bt team and organization Participate With the Team
•
a. Contribute your knowledge and expertise b. Work at making team work well c. Commitment to teams purpose and success d. Listening to others
• •
Requires shift from function oriented to process oriented thinking
By following this process, a flexible but powerful set of five steps for making improvements happen and stick, the team works from a statement of the problem to implementation of a solution, with lots of activities in between. 1. Identifying and selecting projects b. ( meaningful and manageable ) a. Project should give real benefit to customer – small enough to be done Identify high priority problems and give them preliminary boundaries c. Select champion/ sponsor
2. Form the Team a. Black belt, green belt selection b. Select people who have good working knowledge of the situation, and also not part of the problem 3. Develop the Charter ( Project Charter ) a. Written guide to problem or project b. Drafted by Champion and refined by the team. Changes over the DMAIC project c. Charter Contains i. Business Case (reason for pursuing) - list benefits E.g. CTQ loan processing time – reduction will increase no of loans, acquire more customers , higher business revenue, customer satisfaction, decrease costs, reduction in cycle time ii. Financial Benefits – intangible and tangible, any expenditure. Identify savings 1. Direct , Opportunity Cost , Cost Avoidance iii. Problem Statement Address only CTQ , short clear, what and since when is the problem and how much. Describe the pain points Key Consideration – a. Is the problem based on fact and not guess b. can data be collected to verify and analyze. c. Problem statement broad or narrow. Would customer be happy iv. Goal Stmt 1. Address only CTQ, short clear. Improve what and by how much . eg: Reduce loan processing time from 9 to 3 days 2. Define the improvement to be accomplished. 3. Reduce, eliminate, control increase v. Scope 1. Define start, end, cost and man power constraints. Define areas to be covered and not to be covered eg: car loans for specific state only 2. Which process to focus on. What resources available 3. Time commitment from team members. vi. Team Roles and responsibilities ( team communication imp ) vii. Milestones ( Time lines are must, review on each recommended ) 4. Training the Team a. Focus on DMAIC process and tools 5. DMAIC and implement Solutions a. DMAIC teams are responsible for implementing their own solutions. b. develop project plans, training, pilots, and procedures for their solutions and are responsible for both putting them in place and ensuring that they work—by measuring and monitoring results—for a meaningful period of time 6. Handing off the Solution
a. The hand-off is sometimes marked by a formal ceremony in which the official owner, often called “Process Owner,” of the solutions accepts responsibility to sustain the gains achieved by the team. 7. Advantages of DMAIC a. Measuring the problem ( validate the problem with facts ) b. Focusing on the customer ( external customer very important ) c. Verifying root cause ( prove the cause with facts and data ) d. Break Old Habits ( creative new solutions ) e. Managing Risks ( Test and perfect solutions , bug fixing ) f. Measuring results ( follow up – verify real impact ) g. Sustain - ( nurture and support , make change last ) Tools for Generating Ideas and Organizing Information Brainstorming • The basic purpose of brainstorming is to come up with a list of options for a task or a solution—usually a longer list that is shortened into a final choice. – generally starting point
Affinity Diagram • • • An affinity diagram is a grouping of ideas or options into categories. A tool used to organize and present large amounts of data (ideas, issues, solutions, problems) into logical categories It’s a common follow-up to brainstorming and helps synthesize and evaluate ideas.
High Level Process Map – SIPOC FlowChart (Process Map) • • A flowchart is used to show details of a process, including tasks and procedures, alternative paths, decision points, and rework loops. Can be depicted as an “as-is” map showing a process as it currently works or as a “should-be” map showing how it ought to work.
Fish Bone Diagram (Cause and Effect) • • • used to brainstorm possible causes of a problem (or effect), and it puts the possible causes into groups, or affinities; Causes that lead to other causes are linked as in a structure tree. The value of a cause-and-effect diagram is to help gather the collective ideas of a team on where a problem might arise and to help the team members think of all possible causes by clarifying major categories. Will not tell you the exact root cause, but an idea on were to focus on and further root cause analysis
•
Tools for Gathering Sampling Operational Definition • Measurement is meaningless if people don’t count and/or categorize things the same way. An operational definition is a clear, detailed, and understandable description of how to interpret data or events in your process, allowing you to gather data consistently. Customer focal point of six sigma activity collect external customer input, assess and prioritize requirements, and provide ongoing feedback to the organization . VOC tools include many simple and sophisticated market research methods, requirement analysisconcepts, and newer technologies, such as data warehouses and data mining.
VOICE of Customer Methods • • •
CheckSheet and SpreadSheet ( collect organize data ) • • To ensure that the right data is captured, with all necessary facts included, such as when it happened, how many, and what customer. Stratification factors To make data gathering as easy as possible for the collectors.
Measurement System Analysis Methods which make sure that measure are accurate and reliable. Measurement itself can be a cause of issues in process. Value Added and Non Value Added Activities • • Assess process based on value added activities. Business processes tend to grow over time, and usually the added tasks— inspections, extra features, analysis, reports—turn out to have little or no benefit to people who pay the bills. In value/non-value-added analysis, each step in a detailed process map is assessed on its real value to external customers. (“Would they pay us to do this?”) Never possible to eliminate all non-value-adding activities; are in place to protect the business or to meet legal requirements. Eliminate things which are unnecessary and drain on the process.
•
• •
Define – Measure – Analyze – Improve -- Control Oppurtunites – Symptoms – Causes – Solutions -- Sustain
Define Phase –
• • • • •
Understand who the customer is ( internal & external ) e.g.- client, mgmt ( if cost reduction), government Understand customer requirement ( true needs ) ( regardless whether process is capable or not ) Convert customer requirement (VOC) into CTQ. (Which are specific and measurable). Customer requirements are generally high-level, vague and non-specific VOC – surveys, visits, interview, questionnaires
? How does customer view the process , what does he looks at to measure performance ? What are the needs Voice of business – customers – employees –stake holders -society Pages to refer from - Define and Measure pdf – 9,
• • • •
Which customers are focal points. Also segment customers so that research can be focused on the most imp ones only eg:- revenue wise, location , size of the deal ( define each segment clearly ) Narrow the list of segments on the basis of o o A. marketing data B. Existing customer feedback B. Business strategy
VOC data organized – quality issue identified – statement developed – CTQ defined –validate with customer Translate Customer Needs into Requirement VOC Call always on hold or transferred to wrong person Bills generated at different times Takes to long to hire Key Issue Talk to right person Consistent billing Speed up hiring Requirement Correct person correct time Bills on same day of month Receives person at specified date
CTQ types a. Clear / Complex a. ( e.g. Faster recruitment - CTQ – cycle time , cheques clearance, productivity s/w eng ) %people on the bench Visa processing time can be broken down into processing time for different visa types or visas for different countries
b. Clear / Vague a.
b. The dealers in a bank have complained about loan disbursement cycle time. This CTQ can be broken down into disbursement cycle time of the branch office and corporate office c. Unclear/ Vague a. An associate complains that a computer in not operating satisfactorily.Understand the customer’s requirement better to fulfill his needs. It may turn out to be computer speed, monitor size, internet speed, etc
b. An employee is not happy with the Travel reimbursement process. His requirement could be in terms of lesser documentation, shorter timer frame, more accurate reimbursements etc CTQ - should be Simple – Measurable – Attainable – Relevant – Timebound CTQ’s – relate to problem statement CTQ – Tools • Drill Down Tree Break down of main CTQ, requires domain knowledge, usefull if CTQ is complex only
•
Pareto Rule ( 80/20 rule )
Used in conjunction with Drill Down Tree, prioritize CTQ’s were data is available QFD or House of Quality -- a tool that can aid in meeting the needs of customer by translating Customer Needs into Product or Process Specification ------Six Sigma charter developed and reviewed by champion--------------------------High level process map --------------------
Define Phaae
KANO Model
One-dimensional ( 45 degrees ) Customer satisfaction directly proportional to how fully functional the product/service is. More satisfied – more functionality, less satisfied – less functionality Eg: 10% improvement in service – 10% increase in customer satisfaction. More miles per liter –
Must Be Customer less satisfied when less functional, but not more satisfied when prod is more functional. E.g.:- clients of service bureau expect 99.9% system uptime. Satisfaction will not improve when up-time increase, but downtime severe satisfaction Delighter • • • • curve indicates the situation in which the customer is more satisfied when the product or service is more functional, but not less satisfied when the product or service is less functional. Eg:-Discovering some unique features in Microsoft Office would increase customer satisfaction at the point they were ready for the features. Over time “delighters” frequently become “must be” requirements. 2 types of needs Indifferent --Features to which the client is indifferent. For example, advanced features on a VCR may appeal to a very small segment of customers who understand how to use them. The majority of customers may be indifferent to them Reverse - These are features that actually cause dissatisfaction . eg:- hot water in hotel room
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-------------------------- Process Mapping --------------------------------------Activities which take one or more i/p(I) --- processing variable (P) interact with Input and produce o/p(O) of value to customer. Suppliers - supply Inputs. Can be individuals, some other process, departments, functions, etc., internal or external to the process in question. Customer – recipients of the outputs, internal or external to the process High Level Process Map – SIPOC • • • • • • • Supplier – Input – Process – Output – Customer ( physical movement) Customer-output-process-input-supplier ( our thinking ) used in the Define phase of DMAIC and is often a preferred method for diagramming major business processes and identifying possible measures. Used to help define the boundaries and critical elements of a process Overview of the project w.r.t -- to CTQ’s Use Brainstorming And Affinity Techniques To Identify All The Outputs, Customers, Suppliers And Inputs Identify The Primary Outputs, Customers, Suppliers And Input
E.g.:- Customer – Loan Application – Loan processing credit rating – processed loan in time – customer Customer – Registered complaint – handling – resolved – customer. (Reduce time taken to resolve Customer complaints) Refer to page 81
--------------- Measurement Phase-------------------------• Identified Key Measures (KPIVs and KPOVs) Key Process Input variables Key process output variables
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Developed A Data Collection Plan For The Process Executed The Plan And Document Results Process Variation Displayed With Appropriate Charts And Graphs Calculated Baseline Sigma Performance
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I/P – process – o/p ( Process ) ( supplier and i/p ) o/p – process – i/p ( measure ) ( o/p and customers ) 5 Step Data Collecting process a. Clarify Data Collection Goals. ? Decide Why You Are Collecting Data ? Decide What Data You Need To Collect ? Decide How The Data Will Help You b. Develop Operational Definitions And Procedures ? Define What You Are Trying To Evaluate ? Decide How You Will Attach A Value To What You are Trying To Measure ? Decide If You Need To Collect New Data Which category of data to be collected? 1. Cost, cycle time, defect/error rates, value-non-value add
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ii. Is any existing data avl, if yes is it enough iii. Will current data meet the demands of process. If So, Decide How You Will Collect The Data Decide How You Will Record The Data Determine The Period Of Time You Will Study Estimate How Many Observations You Will Need
Characteristic Trying To Measure. Remove ambiguity. Everybody should have same understanding i. Results same even if anybody measures. ii. What and how to measure iii. Eg:- Computer down time ( first define what exactly it is ) iv. Eg:- On time departures c. Plan For Data Consistency And Stability ? Factors That Could Cause The Measurement Of An Item To Vary(MSA) ? Ways To Reduce The Impact Of Those Factors ? make sure that there are no Errors due to the process of data collection and capture the true variation of the process d. Begin Data Collection
? Operational Def – description which mentions How To Get A Value For The
? Train everybody who collects data. ? Communicate the what and why To The Data Collectors And Process
Participants. ? Procedure should be error proof. ? Confirm understanding of operation definition e. Continue Improving Measurement Consistency ? Make Sure periodically that The Measurements Are Stable. ? Check To Make Sure The Measurement Procedures Remain Consistent Types of Data Numerical (variable or continuous, attribute or discrete) Verbal Data Continous – variable can take any value within a given range Eg:- time for which n/w down ,amount of cheque Salary Discrete -- The variable can take only some values within a given set of values Eg:- Gender, Bill, Handset . Discrete (count) No of customer (day), no of errors (months) Creating a Standard Form And Defining Data Collection Procedures: ? Sure That Different People Will Collect the Data In The Same Way ? It Makes It Easier To Keep Track Of Data Sampling Process of Collecting only a portion of the data that is available or could be available, and drawing conclusions about the total population (statistical inference) Sample when - Collecting all the data is impractical or too costly, Measuring high volume process Sample not when – subset may not accurately depict –lead to wrong conclusion. Population is itself small Representative Sample – all parts of the target population are represented equally Customer’s view is captured . understand special characteristics, design proper sampling strategy , select randomly
Measurement System Analysis • Identifies how much variation is present in the measurement process • Understanding measurement variation is necessary for identifying “true” process variation and maximizing true Y improvements • helps direct efforts aimed at decreasing measurement variation • Excessive measurement variation distorts our understanding of what the customer feels • risk of decision based on inaccurate picture of process • Address Measurement System Variation Before Collecting Data To Analyze Process Variation
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Accuracy – the differences between observed average measurement and a standard Repeatability – variation when same person repeatedly measures the same unit with the same measuring equipment Reproducibility – variation when two or more people measure the same unit with the same measuring equipment Stability – variation obtained when the same person measures the same unit with the same equipment over an extended period of time Linearity – the consistency of the measurement system across the entire range of the measurement system
Now Convert Data into Information
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I/p, O/p, process – fluctuate ( which is variation ) Variation is voice of process. Common Cause No undue influence by 6M’s Expected, Inevitable, Random, performance ca be predicted Not desirable, can be avoided, Not random, performance cannot be predicted
Special Cause
Undue influence of one or more 6M’s
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Man power, Mother nature, Materials, Method, Measurements or Machine When a process operates under a common cause alone, it is said that the process is stable or under control o Data from such process will follow a statistical law or rule called statistical distribution. ( single peak, no outliers, no abrupt ending ) When a process operates under special cause over and above the common cause, it is said that the process is untable or out of control When a process operates under the common cause alone, and the resultant variatition is well within customer tolerance, the process is said to be capable Statistical tools for measuring the process o Dot-plot, Histogram, Time series plot
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Random pattern = stable process, non-random* = unstable
Deriving meaning our of data
Specifications are the VOC. VOC vs Voice of process
Basically safe distance from both the limits Understand the variation Tools for understanding variation --Dispersion or variation is spread of data---
Histogram Depicts – how often different values offer. In histogram look for -- Distribution (whether centered correctly) -- Spread or variation (wide or narrow) -- Outlying points or irregularities and shape of distribution. Common shape of frequency diagram
Pg 169, pg 170 Irregularities detected by Frequency Diagram
Data type Dictates – how much variation can be seen. Continuous data – most information about variation in process Discrete data – less information about variation in process.
Page – 179
Measures of central tendency
Pareto Diagram A Data Display Tool That Breaks Down Discrete Observations Into Separate Categories For The Purpose Of Identifying The “Vital Few”
Principle – Few categories most of the problem, assure other category is small. Fix most important BAR CHARTS Control Chart - (Recognizing sources of variation) To Monitor, Control, And Improve Process Performance Over Time By Studying Variation And Its Source What does it do?
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Focuses Attention On Detecting and Monitoring Process Variation Over Time Distinguishes Special From Common Causes Of Variation, As A Guide To Local Or Management Action Helps Improve A Process To Perform Consistently And Predictably For Higher Quality, Lower Cost, And Higher Effective Capacity Provides A Common Language For Discussing Process Performance
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To improve any process -- useful to understand the variation. Variation is the voice of process.
What is Sigma Scale? A Measurement Scale Which Compares the Output of A Process To Customer Requirements 6 sigma -- 3.4 -- Defect per million opportunities. Unit – Item produced or processed Defect - any event which does not meets specification Defect opportunity – any event which can be measured and does not meet customer requirement. Defective – unit with one or more defects. Calculating process sigma
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Make Sure Opportunities Per Unit Stay Constant Before And After Improvement – It Is Critical To Compare “Apples-To-Apples” When Comparing Before And After Results
• Yield = probability of going through all without a defect. First Pass performance is used to calculate process sigma since ? Defects Once Produced Add Waste And Cost (Some Costs Are Easy To Quantify And Some Not ) ? Even The Best Inspection Processes Cannot Catch All Defects ? The Payback Is Generally Bigger To Keep Defects From Occurring
Compare Actual Project Y performance to Customer CTQ’s. Z Is A Unit Of Measure That Is Equivalent To The Number Of Standard Deviations A Value Is Away From The Mean Value
? Process Capability –
• A measure in “Standard Deviation Units (Z)” of how far the process mean is from the performance standard. • How far (in standard deviation units) is the mean from the specification (Lines A+B)
Reduce process variation (control case) Reducing variation – Reduces defect. Shift the process mean (technology case)
Reducing variation will also reduce defects.
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