Six Sigma Overview
Team members
Are the best players for that team. The individuals who can best contribute to project's success. You want the best players to play for your team. .
who select the champion?
It is the senior management team in charge. If the project is within the factory or office location you want a management team of that local facility. If the project is across multiple locations within a division or business unit, then the senior management team in charge of that division or business unit. In other words, who ever is in charge.
Team
Understand what is important to customers Determine the performance outcome to improve
The project leader
is a team captain in charge of leading and executing the project
Black Belt
(Time commitment: Full time Six Sigma Specialist /experts that work on Projects) Lead more complex project than green belt projects Uses Advanced quality and Statistical tools Process Capability Inferential Statistics Design of Experiments
Here's an example of a problem statement
.Over the past 12 months, First Call Resolution "at our IT Help Desk is only 60%. "This is below the 75% required "in our service level agreement" or SLA. "Failure to meet this requirement will result "in a loss of $200,000 in penalties, "not to mention customer dissatisfaction, "nonrenewals, and the potential loss of clients." The opportunity or problem is a recurring, chronic problem stated in specific and measurable terms and it is relevant and significant The problem statement is very compelling. It makes you want to address it immediately.
Review the Define Phase
1. Develop problem and goal statements 2. Develop the project charter 3. Develop a SIPOC diagram
What checklist should be used to identify, screen, and prioritize projects for Six Sigma
1. Finance Impact 2. Degree of urgency 3. Customer impacts: is there a risk of a major product recall or are we risking noncompliance that results in a plant shutdown by the regulators 4. The degree of difficulty in executing the project 5. The level of change or cultural acceptance by the organization.
You can screen them using the following criteria.
1. It must be reoccurring or chronic: The performance deficiency should be a recurring or chronic issue, meaning it should not be a one-off or one-time occurrence. 2. The opportunity should be specific: Specific to a particular product, process, or service. Don't try to bar the ocean. 3. It should be measurable You cant improve what you can't measure 4. Significant Impact 5. Alignment with goals and targets assign by senior management
Checklist of questions and process to Identifying potential six sigma projects Identify the areas with performance shortfalls
1. What improvements are needed 2. How do you plan to achieve those improvements? 3. What Six Sigma projects would help you achieve those goals? 4. Identify performance gaps in key metrics, key performance indicators or KPIs. 5. Do these performance gaps have to be closed? 6. Review performance reports on products, services, and processes. (Look for shortfalls) 7. Analyze data on customer complaints, reviews or credits which indicate deficiencies. Areas with a high number of complaints, returns, or credits indicate deficiencies Audits provide a good source for potential projects. Review reports from customer audits or internal quality audits, any recurring findings or areas with chronically poor performance are potential targets. Employee suggestions are another source for identifying projects, especially where the improvement ideas are supported by data.
How will executing the define phase correctly help with our project
1. provide clear direction and focus to the project team. 2. The team will know what a specific problem is, the goal to be accomplished by when and by whom, what's in scope and what's out of scope. This way the project is focused for success.
1 standard deviation
68.2 %
2 standard deviation
95.4 %
3 standard deviation
99.7 %
How often have you gone to a meeting where nobody knows its purpose or what must be accomplished by the end of the meeting?
A meeting agenda would've solved that. Similarly, a Six Sigma project needs a Project Charter.
Why even have the define phase? What does it accomplish?
As the name implies this phase: 1. Defines the project and goal statements 2. Identifies what the project's all about 3. Defines what measurable performance outcome the project has to accomplish by when and by whom. The first step is to define the problem and goal statements. What specific problem or improvement opportunity is the project addressing? What is the goal of this project? What measurable performance outcome or target must the project accomplish, and by when?
In our example, the goal statement is "Improve First Call Resolution rate to 75% or higher, "while ensuring customer satisfaction, "within the next four months."
As you can see, the goal statement is SMART. Specific to improving First Call Resolution rate. Measurable at 75% or more. It is an attainable and reasonable goal. It is relevant to the success of the business, since that is the level required in the service level agreements . It is time-bound, as the goal must be achieved within four months.
Normal Curve has variation that is random
Bell curve Normal distribution Average or mean is in middle Trails off at 3 standard deviation 99.7 % fall within 3 SD Used to denote random deviation
Let's show the problem and goal statements together. When the problem and goal statements are stated correctly, you and your project team benefit.
Both statements show a compelling problem that needs to be addressed, how much needs to be improved, and by when. To summarize, the opportunity or problem is recurring, chronic, specific, measurable, relevant, and significant. The goal must be smart, specific, measurable, attainable, relevant, and time-bound. When you learn how to develop effective problem and goal statements, you benefit because they compel you to act decisively with direction and focus as to what needs to be improved and why, by how much, and by when.
Executives
C Suite CEO COO CFO Directors Deploy six sigma projects Establish project selection criteria Review and select projects Assign project champions Review updates from champions Provide resources
Critical-to-Quality requirements, or CTQs
CTQs are the performance characteristics of a process, product, or service, that are critically important to customers. They can be measured Specification and targets of metric Know what metrics to monitor and how well they must perform to satisfy the customer Provide Customer focus for your process on a day in/out basis
Controls
Controls are established to ensure gains and improvements are sustainable Procedures
Analyze
Data is analyzed to determine causes or factors Diagnose which x factors impact Y Causes of variation Perform root cause analyzes
What are the 5 phases of a Six Sigma Project
Define Measure Analyze Improve Control
Project Charter
Defines the project, objectives, timeline and scope
Measure
Determine size and scope of problem Measure performance on Y (Collect data and measurement of Y)
Project champion
Executive team point person charge with ensuring project sucesss Executive or senior manager Selects project leader Signs off on project once completed
Master Black Belt
Experienced black belts who received additional training Require Advance Statistical Analysis Process Simulation Project Management Change Management Serve as six sigma trainers and coaches to the rest of the organization
Defect Opportunity
How many things can go wrong More complex and more component the > this number
Yellow Belt
Introduces DMAIC methodology Simply processes and quality tools Concept of variation Voice of customer analysis Process mapping Brainstorming for root cause analysis Trained to lead and facilitate improvement session Department level projects as they are experts in their area Team member on green belt projects
White Belt
Introduction to basic concepts of Six Sigma, Overview Quality concepts Process thinking Motivates interest in Six Sigma
Green Belt
Learn each phase of DMAIC Steps Involved and corresponding Tools used Processes Quality Tools * Data analysis uses statistics lead and carry out DMAIC Projects (Time commitment:8 hour a week avg on projects) Come into DMAIC with project assigned to them and apply what they learn between the sessions
5 Sigma
No more than 233 DPMO 99.9767%
6 sigma
No more than 3.4 DPMO 99,99966%
2 Sigma
No more than 308537 DPMO 69.1463%
4 Sigma
No more than 6210 DPMO 99.379%
3 Sigma
No more than 66807 DPMO 93.3193%
1 Sigma
No more than 690000 DPMO 31%
Why do we screen potential projects
Now once you've identified potential projects you have to screen them to see if Six Sigma is appropriate. .
Road blocks
Organization turf issues Conflicting priorities Resource limitations Budget
Y is the Y=f(x)
Performance outcome to be improved
Project leader
Plans, leads, and executes the project with help of project team Approves the project charter Selects the project team launches the project Provides resources Reassigns and distributes work Monitor progress Removes roadblocks Weekly updates from project team leader Approves implementation of improvements (Processes, key metrics, procedures)training , job descriptions
Sigma level with specification
The number of standard deviation between mean and the specification limits
Define
Project is defined Team is selected Project is lauched
Improve
Solutions developed Piloted Implemented
The champion is the team owner
Someone who has the management clout to make things happen and remove roadblocks. .
What is The purpose of the goal statement
The purpose of the goal statement is to establish the target result to be achieved and by when.
What does senior management consider when prioritizing projects
That's because they are in the best position to see the entire forest not just the trees. What may seem like a good project saving $50,000 should not come ahead of another project at the other end of the company that can save over a million dollars. You don't want to sub-optimize. Put the company's limited bandwidth to the best possible use.
Who do you want to lead the team? Who should be in charge of executing the project?
That's the project leader. Think of project leader as team captain You want someone who has the knowledge, and experience in the processes being targeted by the project. You also want someone who can lead a cross-functional team, because processes and improvement opportunities cut across the departments and functional boundaries.
Who are the members of your Six Sigma Team
The champion, the project leader and the team members
What is the first phase of a six sigma project
The first phase of a six sigma project is the define phase
Which is better a higher or lower sigma level
The higher the Sigma Level, the better the performance. A Six Sigma Level or performance means there are no more than 3.4 DPMO, or defects per million opportunities.
Team Champion
The person in charge of organizing and supporting the project? Requires someone who is in charge, someone in senior management who has an interest, better yet, a stake in insuring the project's success. Why senior management? Because the champion must be high enough in the organization to have enough clout: 1. to authorize the time and resources needed for the project, 2. have enough influence to remove any roadblocks to the project completion. 3. Have an interest or stake in that project, 4. Their goals or targets for the year are one step closer to achievement, if and when the project succeeds.
Problem and goal statements
The problem statement describes the opportunity or problems to be addressed by the Six Sigma project. The opportunity or problem should not be a one-time occurrence, not a one-off problem that occurs sporadically. It should be a recurring, chronic problem. The problem or opportunity should be specific and measurable. For example, it is specific to a process, product, or service and it is specific to a type of defect or performance deficiency. It should be measurable to indicate a size and impact of the problem in operational and financial terms. The opportunity or problem should be relevant and significant to the organization. Otherwise, why bother?
What is a project charter
The project charter is a document that describes the project. It includes: 1. Problem and goal statements 2. Project scope 3. Expected operational and financial impact 4. Names of the project team and other key players 5. Milestones. The project charter serves as an internal contract between senior management and the project team. It provides a common understanding on the purpose and focus of the project. Once the charter is completed, champion will review and approve it.
What is the second step
The second step is to develop the project charter
What is the third step
The third step is to develop a high level process overview map called a SIPOC diagram. SIPOC, is an acronym for: 1. Supplier 2. Input 3. Process 4. Output 5. Customer. The SIPOC diagram identifies and illustrates at a high level processes relevant to the project. Inputs and outputs involved. Those who supply the process inputs, those that receive those product outputs as customers. The SIPOC diagram is a useful scoping tool showing what processes are within the scope of the project and the stakeholders involved.
DPO
Total number of defects/ total number of defect opportunities
DPMO Defects per million Opportunities
Total number of defects/ total number of defect opportunities x 1 million
What is the Voice of the Customer, or VOC.
VOC are needs and expectations expressed in the customer's language. It's what's important to customers expressed from the customer's viewpoint
How can you make the Voice of the Customer, meaningful to your employees
We have to translate them from the customer's language, into a language that employees can relate to when they perform their work. translate the Voice of the Customer, into Critical-to-Quality requirements, or CTQs
What equation is use to show step 1: define
Y = f(x) It defines the Y, as in what is the Y in Y is a function of X. Where Y is the performance measure to be improved.
Y = f(x)
Y factors that we can measure X Factors that affect Y Help focus your measurement, analysis and improvement efforts
Who should select the project leader? The champion. Team members.
You want a team that you can win against other companies Not volunteers but the best players for that particular project Who should select the team member? The champion, with the help and knowledge of the project leader should select the individuals with the experience and expertise, who can best contribute to the project's success. If they are not available, the champion will work with their managers to reassign their current duties to others so that they can be freed up to help with the project.
sigma level
a performance metric that is used to indicate the quality level of a product, process or service