GB Training Dmaic

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Six Sigma Green Belt TRAINING

GB TRG MATERIAL Slide 1 Proprietary to Wipro Ltd
How Successful Leaders see Six Sigma
Six Sigma is the most important initiative GE has ever takenit is part of the genetic code of our future leadership. -Jack Welch, Former CEO, General Electric You can see the before & after of an organization when Six Sigma grabs hold & takes place. -Richard Johnson, Director of Six Sigma, Allied Signal Successful leaders have made Six Sigma their way of conducting business. -Azim Premji, Chairman, Wipro Limited
GB TRG MATERIAL
Slide 2
Proprietary to Wipro Ltd
What is Six Sigma?
Six Sigma as a metric

At Six Sigma level, a process produces less than 3.4 defects in a million or
99.99966% Yield
Six Sigma as a methodology

Improving process capability to desired levels
Six Sigma as a philosophy

Business excellence through organizational transformation
Six Sigma : Variation Based thinking
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Slide 3
6 Sigma as a metric
The Sigma Scale provides a common scale/ metric for comparison.
Which process is performing best?
PROCESS Call servicing Billing PERFORMANCE 32 seconds ASA vs. goal of 35 98% accuracy
Accounts Receivable
Customer Service
33 days average aging vs. goal of 40

82% rated 4 or 5 on responsiveness
Sigma level 2 3 4 5 6
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DPMO 308,537 66,807 6,210 233 3.4

Slide 4 Proprietary to Wipro Ltd
Six Sigma: As Methodology

An efficient & effective method :
Six Sigma is a structured application of
process improvement tools,

applied by dedicated resources on a project basis,
to increase customer satisfaction and reach strategic business goals.
Black Belts Expertise
Statistical Tools
Black Belts Expertise
Business Problem
Statistical Problem
Statistical Solution
Business Solution
GB TRG MATERIAL
Slide 5
Six Sigma: As Philosophy
A philosophy :
For many companies, Six Sigma is a management philosophy.
Successful leaders have made Six Sigma their way of conducting business.
-Azim Premji, Chairman, Wipro Limited

Six sigma is the best training that an organization can give to its employees, its even better than sending them to Harward Business School.
- Jack Welch, Former CEO, GE
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Slide 6
Six Sigma is Variance Based Thinking
Consider below performance on On time delivery

Mean 0.70 days
Target 0 days
-20
-10
10
20
On Target !!!!
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Good Performance ??
Six Sigma is Variance Based Thinking
What customer sees!!
-20
-10
10
20
Customer always looks at variance , mean is meaningless

Are We Looking at the Variation?
Dont worry, That rope is one inch thick on average.
If I had to reduce my message to management to just a few words, Id say it all had to do with reducing variation
W. Edwards Deming
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Slide 9
DMAIC Overview
DEFINE
The Problem
MEASURE
Y ( Outcome) Validate Measurement System
DMAIC applies to an existing process that needs improvement
ANALYZE
Baseline Y and Set Goal
Identify Xs(Variation Sources)
IMPROVE
Quantify Xs
CONTROL
Control Xs
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Slide 10
DMAIC
Establish CTQ Characteristics
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Slide 11
CTQ (Critical to Quality)
A CTQ is a
Business CTQ
Product or Service characteristic

Customer CTQ
that satisfies a
Internal CTQ
Customer Requirement OR
Process Requirement
Project CTQ
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Slide 12
What are Business CTQs?

Business CTQs drive the business goals & vision Typical Business CTQs are in the area of:
Operational Excellence
Cost Reduction Productivity Improvement
Employee Satisfaction
Customer Satisfaction Sales Growth
Profitability
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Slide 13
Define your Customer
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Slide 14
Who is your customer?
A customer is someone who

Uses your product or service Decides to buy your product or service Pays for your product or service Gets impacted by your product or service
Internal & External customers
Primary & Secondary customers

Key concepts
Different markets / segments
Different customer requirements

Product / Service chain
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Slide 15
Explore Customer CTQ
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Slide 16
Customer CTQs
Six Sigma begins with the customer
Customers find it easier to define what they do not want

Customer CTQs are defined by customers Sources of customer CTQs
Survey results
Service reviews
Meetings
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Slide 17
Customer Requirement perceived by Sales Team
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Customer Requirement captured by Design Team
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Customer Requirement created by Production Team
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Customer Requirement delivered by Implementation Team
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Slide 21
Actual Customer Requirement
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Slide 22
Examples of Customer Responses on CTQs

A Car Purchaser
A TV Purchaser
Flat Screen Good Sound NTSC / PAL Compatible Affordable
Good Acceleration
Spacious
Affordable
Power Steering
Loan Facility
Good After Sales Service
A Caller to Help Desk

Quick Answering
A Prospective Employee
Good Salary
Courteous Response
Quick Problem Resolution
Location Preference
Flexible Working Hours ESOPs Separate Cabin
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Slide 23
How to Explore Customer CTQs
Often, customer requirements are hazy Customer requirements must be understood clearly VOC is a technique to organize, analyze & profile the customer requirements (collection of requirements is done through surveys / meetings)
VOC Table
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Slide 24
VOC Data Source

REACTIVE SOURCES PROACTIVE SOURCES Interviews Focus groups Surveys Comment cards Sales visits/calls Direct observation
Complaints Problem or service hotlines

Technical support calls Customer service calls Claims, credits Sales reporting Product return information Warranty claims
Market research/monitoring Benchmarking

Quality scorecards
Web page activity
NPS survey outcomes can be Reactive & Proactive source
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Slide 25
Define Internal CTQ / CBP
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Slide 26
How to Arrive at Internal CTQs / CBPs
Customer CTQs( needs) are often hazy & they must be converted into meaningful internal goals that are assignable to functions
More structured methods & tools are available to convert Customer CTQs / Business CTQs into internal CTQs / CBPs
CTQ Drill-down
Quality Function Deployment
(QFD / House of Quality)
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Slide 27
Example CTQ Drill Down
Improve Profitability
Reducing cost
Increase Realization or Billing rate
Offshore Business Model
Manpower cost
Travel & overheads
Infrastr. cost
New Geos
High End Practices
More Offshore component
Productivity
Salary cost
Productivity (NLD) Projects were selected from the Business CTQ of Profitability
One Example of A Typical CTQ Drill-down
Example of On-time delivery CTQ
Total Units 168
Orders Fully Serviced 132

A 36 B 47 C 31 D 18
Orders Not Fully Serviced 36
A4
6 Late 31 late 8 late 7 Late
B 27
C1
D4
52 Defects
36 Defects
With the data support, team decided to take project in Product B, Which is contributing to more than 70% defects
DMAIC
Define a Project
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Slide 30
Theme Selection Matrix
Theme selection matrix can be used to prioritize project themes coming from the brainstorming exercise It is a structured & data-oriented prioritization exercise to select right project
A scale of 1-9 is applied to evaluate multiple themes on four aspects. Final score is arrived by multiplying the scores of each category
Selected Themes CTQ type Rating Parameters for the themes (1-3-5-7-9) Importance Importance to the to the Financial internal External benefits/ Final customer customer Annum Effort score
S.no.
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Slide 31
Theme Selection Matrix: Example
A project team wants to select 1 project themes out of 4 by using the Theme selection matrix
Rating Parameters for the themes (1-3-5-7-9)
S.no.
Selected Themes
CTQ
Importance Importance Financial to the to the benefits/ Effort internal External Annum Customer Customer
Final score
1
2
Transition team productivity Improvement
Productivity
NLD at small a/c ( less than 20 Productivity resource ) NLD at large accounts ( more than 20 resources ) Improving Service Desk performance ( CCOP Imp. )
3
4
Productivity
C-Sat/ Productivity
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Slide 32
Scope the Project
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Slide 33
What is Scoping?
Its an attempt to define what will be covered in the project deliverables Scoping sharpens the focus of the project team
Sets the expectations right
Types of Scoping
Longitudinal Scoping Lateral Scoping
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Slide 34
Longitudinal Scoping
Longitudinal scoping is done on the length of the process

e.g. From the time a bug is assigned to the time it is submitted for fix
e.g. From the time of customer reporting the complaint till final satisfaction confirmation
Mostly the start & end points are baton change points
A macro as-is process map must be prepared to facilitate longitudinal scoping
GB TRG MATERIAL
Slide 35
SIPOC
P
Process
Tool
S
Suppliers
I
Inputs
O
Outputs
C
Customers
SIPOC
Process Boundary
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Slide 36
Example of a Photocopying Process
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Slide 37
Example - SIPOC
Process Name
Starting point: User sending a mail to Helpdesk End point: Call logging in the Tool/Email Response to the Customer
Suppliers
End User Wipro MIT Mail
Inputs
Helpdesk Team
Client IT Dept
IT infrastructure
Process Outputs Customers Receipt of Mail from User Call allocation to the Helpdesk Executive Acknowledgement Helpdesk End User Executive Logs the Mail Ticket On Ehelpline* HelpDesk sends acknowledgement to the Customer
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Slide 38
Process Mapping Nomenclature
Process
Decision
Data
Pre-defined Process
Document
Terminator
Manual Operation
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Delay
Manual Input
Slide 39
Lateral Scoping
Lateral scoping is done on the breadth of the process

e.g. All despatches from North & South regions
e.g. Calls received during general shift
One or more of the following are covered here:

What all kinds of units the process will cover In what situations the process is valid
What are the qualifiers for the transactions

What functional domains does the process cover In what geographical areas the process is valid
CTQ Drill down and pareto analysis will help in effective lateral scoping
GB TRG MATERIAL
Slide 40
Scoping Techniques

Write inside the box what you think project covers Write outside the box what you think project excludes
Tool
Example for an On time Despatch project

Inside-Outside
Longitudinal
Starts after receipt of PO from customer Ends at the despatch from factory
Any transit delays
Product damages
Lateral
Despatches from Mumbai plant All despatches during shift A Despatch through transporter X
Billing errors
Non-availability of customer
Project boundary
Quantify Benefits
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Slide 42
Projection of Benefits
Six Sigma has a strong focus on money

Management buy-in is easier for tangible benefit projects Tangible benefits could be of various types
Cost Reduction / Saving
Increase in Sales / Revenue

Enhanced productivity
Enhanced measurable Customer Satisfaction

Enhanced measurable Employee Satisfaction
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Slide 43
DEFINE THE PROBLEM STATEMENT
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Slide 44
Defining a Problem Statement
Our customers are angry with us and thus delay paying their bills.
In the last 3 months, 12% of our customers are late, by over 45 days in
paying their bills. This represents 20% of our outstanding receivables & negatively affects our operating cash flow.
When Consequence What Magnitude
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Slide 45
MAIC
Establish Performance Parameters
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Slide 46
Introduction - MEASURE
A robust measurement system forms the basis of any Six Sigma project
A measurement system has two characteristics
Design of the measurement system
Precision of the measurement system
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Slide 47
Map Detailed As-is Process
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Slide 48
What do you see hereany clarity?
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Slide 49
See the Difference Now
Recall..One picture is better than 1000 words
Process Mapping is a graphic display of steps & activities that constitute a process
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Slide 50
Benefits of Process Mapping
Simple & visible structure for thinking through a complex process Enables seeing the entire process as a team
Enables seeing that changes are not made in a vacuum and will carry through, affecting the entire process down the line
Magnifies non value-added areas or steps
Identifies cycle times of each step in the process
Helps re-examine (if needed) the scope and charter of your project
GB TRG MATERIAL
Slide 51
Micro Process Map of a Manufacturing Process
despatch as reject no
yes ? G/f
g/f application
sampling & testing
recording properties
yes recoiling ? O.k
marking for next route as per cust. reqmt.
transfer to concerned line
finishing as per reqmnt. (coil, sheet, profile)
packing
despatch/ shipping
storage at customer end
installati on
guard film removal
inspection
additional cold air drying
additional cold air drying
hot air drying temp-100 110 Deg C
squeezing by rubber roll
water quenching
baking as per thickness pmt-224 2 burner
top coating w ft=55-65 visco-58-65
additional cold air drying (r.t.)
hot air drying temp=100 Deg C
squeezin g by rubber roll

hot air drying temp-100 Deg C
water quenching
baking as per thickness pmt-216

baking as per g.p. thickness PMT -224
primer coating w ft-15-18 visc-30 sec
additional cold air drying yes
? Paint peel off
no end
continuous uncoiling of coil
degreasing concn-0.3-0.4 temp-80 Deg
hot
water rinsing temp=80 Deg C
cold (room temp) water rinsing
wet scrubbing by scoth bright
chromating concn- 0.8 1.2 Ph-1.2-2.0
coating on back side 30 w ft visco-30 -35 sec
water quenching
hot air drying temp -90100 Deg C
complaint raising by customer
START POINT
testing of ph , concn. , temp, of water , degreasing and chromating
2 stage squeezing by rubber roll
squeezing by rubber roll & CPC
visit to customer for assesment
replacement / rework
end
Make the process map aligned to your Project objective, Dont paste ISO process maps.
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Slide 52
Another way of mapping processes- CFPM
Teams can use this structure for processes that move across functions
Function 1
Step 4
Step 5
Step 3
0.2, 0.10.5Hrs 1.2, 11.5Hrs
See Cycle time also. Average time & Range given
Function 2
Step 2
Function 3
Step 1 4.5, 4-6 Hrs
Step 8
End
Function 4
Step 6
Step 7
Process map is must in cycle time reduction projects

Points to Look For
The pain areas (identified at the time of project selection) must be within the selected scope Guard against analyzing the process at this stage, just map as-it-is Do not map the process as you would like it to be
Take care of Parallel & Sequential activities for Cycle time reduction projects
GB TRG MATERIAL
Slide 54
Define what to measure and how to measure
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Slide 55
Why Collect Data?
Improvement can only occur if we understand where we are & where to go, supported by a measurement system that validates both situations
Successful organizations have a common language to communicate-- Data Common language- Data, promotes objectivity in decision-making process Have you reached where you intended to? -- only data answers that question Its rightly saidIf you cant Measure it, you cant improve it.
GB TRG MATERIAL
Slide 56
Develop Operational Definition
An Operational Definition is a precise description that tells how to get a value for the characteristic you are trying to measure. It includes what something is and how to measure it
Purpose:
Removes ambiguity common understanding of defect definition
Identifies what to measure

Identifies how to measure it
Aim is to have apple to apple comparison for Baseline performance and improved performance.
GB TRG MATERIAL
Slide 57
Operational Definition - Examples

Try to Remove ambiguity from the statements
Im coming by 8 o clock.verify 8 am or pm
Im reaching Dammam by 8 o clock flight.verify 8 o clock is Arrival or Departure time Im waiting for Doctor for so longverify 5 minute or 5 Hrs Give me half bottle water---bottle may by 200ml to 20 Lt Ive reduce patients waiting timeat which stage or what is the start & end point Ive improve profitabilityin which region/ which product
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Slide 58
Operational Definition & Data collection plan

Operational Definition
Unit of Measurement What to Measure How to Measure
Performance measure (Y)
Operational definition
Data source and location
Sample size
Who will collect the data
When will data be collected
How will data be collected
Other data that should be collected at the same time
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Slide 59
Operation Definition - Example

Exp.: SLA Calculation at A/c level
Objective: Why we need this/ Biz case Scope/ coverage: Reasons if not 100% Clarify what we are measuring: Uptime/ Response/ Resolution time, etc Is it aligned with the customer reqt (SLA/ Contract) Source of Data: IS System (Pure), Manual, Hybrid (IS System with manual intervention ) Sampling plan/ Freq of data collection Process owner Any stratification reqd/ recommended: SLA w.r.t. Skill calls, spare calls, EC Vs FE
Challenges in authenticity of data: Like RE Call closure may not reflect 100%
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Slide 60
Types of Data
Discrete data
Data that can take a limited number of values (Pass / Fail, OK / Not OK, Win / Loss)
Examples
Days in a week
Number of yes responses to a satisfaction survey

Number of countries that play cricket
Continuous Data
Data that be expressed in either fractions or whole numbers Examples

Temperature of the room Exchange rate of a currency Yield of a process Height of a person
You need to be careful while selecting the data type and you need to follow the same approach in improve phase also.
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Slide 61
Which Type of Data is Preferable?
Large sample sizes are required to measure higher Sigma multiples for discrete data
Since continuous data measurements can be broken down, relatively smaller samples are required for higher Sigma calculations
Discrete data does not allow to understand the process variation
8:30 AM
A B C
11:00 AM
D
How Good is Good and How bad is Bad.

Design Sampling Plan for Establishing Process Baseline
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Slide 63
What is Baseline?
Baseline refers to a reference point from where the improvement would be measured For Base lining teams need to collect fresh Samples. Historical data may have measurement errors like operational definition issues, which can lead to wrong projection of the Baseline
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Slide 64
Introduction to Sampling

We do sampling all the time Populations & Samples Practical aspects Cost & Time Sampling is done to study a representative portion of population Any term describing the characteristics of a sample is called statistic
Tool
Any term describing the characteristics of a population is called parameter
Sampling
Sample
Population
How Big a Sample?
Too Big:
Too small:
Wont do the job
Requires too many resources
Take BB Assistance for calculating Sample Size

MAIC
Validate Measurement System for Y
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Slide 67
Validate Measurement System for Y
In transactional environment a robust Operational definition will ensure Good measurement system Use ITIL guidelines & Industry best practices for arriving at right Operation definition ( e.g. AHT, FCR etc )
Take BB help in designing & performing GR&R
Gage Repeatability & Reproducibility

DM
AIC
Establish Process Baseline
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Slide 69
Compute Process Sigma Multiple Using Collected Data
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Slide 70
Six Sigma Metrics

Customer Specification / Unit / Defect Definition
Discrete Data
Continuous Data
Defects Defects per Unit (DPU) Mean
2a
Std. deviation
2b
Defects per Million Opportunities (DPMO)
Process Sigma Multiple - Z

GB TRG MATERIAL Slide 71
3
Process Sigma Multiple for Discrete Data
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Slide 72
Business Problem
A project team wants to reduce the total waiting time taken in hospital (from reception to discharge). Team has randomly collected the following data of last 3 weeks for the waiting time for few patients/ customers :--
(Data given is in minutes) USL decided by Management based on other hospitals study is decided at 60 Minutes max.
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Slide 73
Customer Specification / Unit / Defect
Unit: Customer Specifications:

USL:
Any customer/ patient coming for treatment
USL is 60 minutes
Upper Specification Limit for a Performance Standard. Anything above this is a defect.
Defect Definition:
Any customer whose total waiting time exceeds 60 minutes
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Slide 74
2a
Discrete Data
Lets treat this data as discrete That means I would count the number of patients who had to wait more than 60 minutes
Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 6 Customer 7 Customer 8 Customer 9 Customer 10 5 49 48 53 58 50 46 50 49 47 Customer 11 Customer 12 Customer 13 Customer 14 Customer 15 Customer 16 Customer 17 Customer 18 Customer 19 Customer 20 50 48 36 50 50 62 45 47 51 44 Customer 21 Customer 22 Customer 23 Customer 24 Customer 25 Customer 26 Customer 27 Customer 28 Customer 29 Customer 30 49 48 39 49 34 33 57 48 47 390
There are only 2 defects in 30 units
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Slide 75
2a
Defects per Unit
Number of defects found at any check-point
DPU =
Number of units processed at that check-point
So, DPU of the given data is =
2 / 30 = 0.067
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Slide 76
Sigma Multiple Calculation Discrete Data

Every DPMO value relates to a particular Sigma Multiple or ZST value. In this case, this process is working at 3.00 Sigma multiple The same can be calculated by Given Excel template also. ZST ZST
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Slide 77
Process Sigma Multiple for Continuous Data
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Slide 78
2b
Continuous Data
Lets treat the data of the waiting time data as Continuous and calculate Base Line Sigma For calculating Baseline or Sigma Multiple ZST in continuous data, we need to understand: Mean, std deviation & shape (Type of Distribution)
Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 6 Customer 7 Customer 8 Customer 9 Customer 10 5 49 48 53 58 50 46 50 49 47 Customer 11 Customer 12 Customer 13 Customer 14 Customer 15 Customer 16 Customer 17 Customer 18 Customer 19 Customer 20 50 48 36 50 50 62 45 47 51 44 Customer 21 Customer 22 Customer 23 Customer 24 Customer 25 Customer 26 Customer 27 Customer 28 Customer 29 Customer 30 49 48 39 49 34 33 57 48 47 390
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Slide 79
Sigma Multiple Calculation Continuous Data

In this case, Mean = 57.73 minutes Std dev : 63.54 USL : 60 Minutes
ZST can be calculated by the Excel Template. This process is working at 1.54 Sigma multiple ( ZST = 1.54, or DPMO = 484750). Can you notice the difference in ZST & DPMO values by treating the same data in different way. What is the message?
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Slide 80
Introduction of Normal Distribution
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Slide 81
Introduction to Normal Distribution

Normal Distribution with
Mean =100 Standard Deviation = 10
1 unit of standard deviation
Figure 3.01
70
80
90
100
110
120
130
Its a Probability Distribution, illustrated as N ( , ) Simply put, a probability distribution is a theoretical frequency distribution
Higher frequency of values around the mean & lesser & lesser at values away from mean
Continuous & symmetrical
Tails asymptotic to X-axis

Bell shaped Total area under the Normal curve = 1
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Prediction based on Normal Distribution

Figure 3.02
- 1 + 1 68.26% - 2 95.46% + 2
- 3
- 4 - 5
99.73% 99.9937%
+ 3
+ 4 + 5
99.99943%
- 6
99.999998%
Slide 83
+ 6
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DM
AIC
Define Performance Goals
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Slide 84
Improvement Paths in Process Sigma Multiple
Mutually signed-off change in specification limits

Its not a process improvement
Shifting the mean
Reducing the variance
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Slide 85
Benchmarking Exercise
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Slide 86
Benchmarking
Benchmarking is about looking at others for superior methods Others may include suppliers, competitors, customers or even a different industry Benchmarking could be done both on means as well as ends
Tool
Benchmarking
Types of benchmarking
Internal Functional Competitive
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Slide 87
Establish Process Improvement Goal p-value & confidence band concept
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Slide 88
Key Concepts
If the existing process has to be improved, then the improvement goal should be chosen only after proving statistically that it can be achieved only due to change, & not by chance , I.e; the probability of achieving the goal with the current process should be very low (generally <5%)
In Minitab, Graphical summary command is used to identify the right target, that is outside of 95% probability band of current data set.(Target can be set on mean as well as std deviation)
Summary for June
A nderson-D arling N ormality Test A -S quared P -V alue < M ean S tDev V ariance S kew ness Kurtosis N M inimum 1st Q uartile M edian 3rd Q uartile M aximum 135.72 46.95 9 5 % C onfidence Inter vals
Mean Median 50 75 100 125 150 175 200
351.69 0.005 160.41 483.73 233992.60 9.161 123.073 1477 1.77 23.49 50.75 92.88 8354.38 185.10 55.05 501.83
1200
2400
3600
4800
6000
7200
8400
95% C onfidence Interv al for M ean 95% C onfidence Interv al for M edian 95% C onfidence Interv al for S tDev 466.89
Any value, outside this band will be a good target, as the chances of getting it by current process is <5%
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Slide 89
DM
AIC
Identify Variation Sources
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Slide 90
Means & Ends of a Process
Y =
f ( X1, X2, X3Xn )
Y
Dependent Process Output Effect Symptom Monitor
X
Independent Process Input / Step Cause Problem Control
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Slide 91
Generating & Prioritizing Xs

Identifying & prioritizing Xs could be done using both non-statistical & statistical tools Identification tools include
Experience of process doers
Brainstorming & Multi-voting Process mapping Fishbone
(non-statistical basis)
Focus on identifying problem areas
Focus on identifying potential root causes
Prioritization tools include

Pareto Diagram Stratification Correlation (for a single X) Regression (for multiple Xs) Chi-square test ANOVA Failure Mode & Effect Analysis (FMEA)
Focus on prioritizing potential root causes
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Slide 92
Identification Tools
Brainstorming & Multi-voting is a structured methodology to collect responses from a group & arrive at a short-list
Even though it provides a short-list, its not an effective prioritization tool because short-listing
is not done on any mathematical basis
Use of Process mapping requires studying the micro as-is process mapped in step 2
earlier & walking through it
Fishbone relates an effect to its cause by drawing a tree diagram
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Slide 93
Points to Remember in Brainstorming
All ideas are important, dont out rightly reject any idea Participation should be ensured from all team members To ensure this, project teams could use the round-robin method of idea generation Its advised to use the Black Belt as the facilitator here
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Slide 94
Fishbone
Also called Cause & Effect or Ishikawa diagram
Tool
Focus of Fishbone is to arrive at the root causes of the problem areas identified through multi-voting / process mapping
It works on the principal of asking why to each cause till you reach the root cause
Fishbone
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Slide 95
Characteristics of a Fishbone
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Slide 96
Characteristics of a Fishbone
Search for the REAL CAUSES of the problems that you deal with.
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Slide 97
How to Construct a Fishbone
Review the problem statement / defect definition
Brainstorm & identify possible causes
Sort causes into reasonable clusters
Choose the clusters & name them into big bones
Check the logical flow of cause and effect
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Slide 98
Fishbone Structure
Cause 1 Cause 2
Hows for 1st House

Root-cause 221
Cause 11 Cause 12
Cause 21
Cause 22 Root-cause 222
Backbone
Cause 31
Effect
Cause 3
Big Bone
Medium Bone
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Slide 99
Fishbone Structure
Cause 1 Cause 2
Hows for 2nd House

Root-cause 221
Cause 11 Cause 12
Cause 21
Backbone
Cause 31
Effect
Cause 3
Big Bone
Medium Bone
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Slide 100
Fishbone Structure
Cause 1 Cause 2
Hows for 3rd House

Root-cause 221
Cause 11 Cause 12
Cause 21
Backbone
Cause 31
Effect
Cause 3
Big Bone
Medium Bone
GB TRG MATERIAL
Slide 101
Fishbone Example
CRM malfunction Error in Listening
Lack of training on listening skills No maintenance Problem with instrument Rough handling
Printer error CRM not saving the data properly
Backbone
No credit card verification
Wrong Customer Details
Root-cause 1
Foul order No cross-check
Root-cause 2
Fishbone can be used in organizing the causes also.

Key Concepts
Its difficult to judge how many levels one needs to explore in a fishbone Sometimes project teams may hit the root-cause at multi-voting / process mapping level, but they may do a further root-cause for the sake of it In such cases, it is always a good idea to see if there is further scope for exploring by asking why
Always remember that we are trying to identify controllable Xs, what can not
be controlled can not be a root-cause One must be able to see the effect on Y when values / levels of root-causes are
changed
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Slide 103
Separate Vital Few from Trivial Many for Further Screening
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Slide 104
Prioritization Tools
Some teams may do a multi-voting here, at the output of root-cause analysis Pareto diagram works on the 80:20 rule of 20% causes contributing to 80% of defects
Co-relation & Regression help in identifying the movement of continuous Y with respect to continuous X ANOVA & Chi-square help in identifying the movement of continuous / discrete Y with respect to discrete X Failure Mode & Effect Analysis (FMEA) identifies the process failure modes & assigns a number to it that helps to prioritize the actionables
Success of all prioritization tools depends upon data collection

Pareto Diagram
A graphical tool for ranking causes form most significant (Vital Few) to least significant (Trivial many). Based on Pareto principle, which was first defined by J.M Juran in 1950. Pareto principle was made after 19th century Italian economist V. Pareto (1897). Most effects come from relatively few causes. Also known as 80:20 Principle.
Tool
Pareto diagram indicates which area should be taken up first in eliminating defects and improving operations.
Example:Suppose a person identifies multiple root-causes of reaching his office late. Now he is not sure where to focus so that he reduces the occurrence of
Pareto
reaching late by minimum 50%.
He has identified following root causes
Woke up late
Clothes not ready

Breakfast not ready Bus not coming on time
Traffic jam
Bus waiting for other employees
He collects data on how frequent each of the root cause is & constructs a Pareto
GB TRG MATERIAL
Slide 106
Pareto Diagram
Frequencies of root causes for reaching office late
70 60 50 40 30 20 10 0
o ng mi co t no nt e im ot Cl hes y ead ot r n up oke W l at e ffic Tr a j am akfa Br e ot r st n y ead ait sw Bu i ng
100 80 60 40 20 0
s Bu
Count Percent Cum %
25 35.2 35.2
18 25.4 60.6
15 21.1 81.7
6 8.5 90.1
5 7.0 97.2
2 2.8 100.0
GB TRG MATERIAL
Slide 107
Percent
Count
Other Prioritization tools
So far, we have not used any statistical tool to prioritize Xs. Depending upon the data characteristics of Y & X, we can choose the appropriate tool
Continuous
Correlation & Regression
ANOVA
Y
Discrete
Identify opportunities for converting Y into a continuous one or use FMEA
Chi-square
Continuous
Discrete
X
Regression
While correlation tells us only about the direction of movement, it does not throw much light on degree of movement in one variable with respect to movement in another Regression of Y on X results in a transfer function equation that can be used to predict the value of Y for given values of X
Tool
Y =
f(X)
Regression
Y can be regressed on one or more Xs simultaneously

Simple linear regression is for one X Multiple linear regression is for more than one Xs
GB TRG MATERIAL
Slide 109
Multiple Linear Regression (MLR)
Multiple regression regresses Y on more than one Xs simultaneously

It is similar to Two-way ANOVA we have discussed in step 5, except for the difference
that Xs used in ANOVA were discrete
The approach is similar & a linear multiple regression equation looks as follows:
Y = A + B1X1 + B2X2 + + BnXn + C

where Y =
X1 = X2 = A = B1 & B2 =
Dependent variable / output / response

First independent variable / input / predictor Second independent variable / input / predictor Intercept of fitted line on Y axis Regression coefficients / Slopes of the fitted plane on two axes
C =
Error in the model
GB TRG MATERIAL
Slide 110
Multiple Regression Example
Suppose we are trying to predict rent of an apartment based on the size of the apartment & its distance from the main commercial area. We gather the following information as below. If you are looking for a two-bedroom apartment 2 miles from the main area, what rent should you expect to pay?
X1
X2
GB TRG MATERIAL
Slide 111
Multiple Regression Example
Minitab gives the following output:

Regression Analysis
The regression equation is
Rent = 852 + 1381 * Rooms

Predictor
Constant Rooms Distance S = 975.3
Coef
852 1381.0 -5.4 R-Sq = 91.5%
StDev
1146 259.5 142.1
T
0.74 5.32 -0.04
P
0.511 0.013 0.972
R-Sq(adj) = 85.8%
Analysis of Variance Source DF SS MS F P
Regression
Residual Error Total
2
3 5
30665301
2853449 33518750
15332650
951150
16.12
0.025
For a 2 bedroom apartment 2 miles away from main area, expected rent could be INR 3614 per month
GB TRG MATERIAL
ANOVA
ANOVA is used to short-list potential discrete Xs for a continuous Y
Tool
We can use one-way ANOVA & see the variation in Y for one X at a time We can use two-way ANOVA for more than one X
ANOVA
GB TRG MATERIAL
Slide 113
ANOVA Example
A team puts great emphasis on customer satisfaction. For some weeks, the ratings seemed to suffer & the manager tried to identify the factors that could be causing this. He chooses two of the potential discrete factors as Team that handles the call & Shift in terms of A & B. Which factor is vital?
Team Desktop DC Desktop DC Desktop DC Desktop DC Desktop DC Desktop DC Desktop DC Desktop DC Desktop DC Desktop DC Shift A A A A A A A A A A B B B B B B B B B B Rating 3.4 4.5 3.2 4.8 3.6 4.2 4.1 4.6 3.1 5 3.5 4.2 4.6 4.9 3.5 4.1 4.3 4.7 3.4 3.8
GB TRG MATERIAL
Slide 114
ANOVA Example
Two-way Analysis of Variance
Analysis of Variance for Rating
Source
Team
DF
1
SS
3.281
MS
3.281
F
17.38
P
0.001
Shift
Interaction
1
1
0.013
0.544
0.013
0.544
0.07
2.88
0.800
0.109
Error
Total
16
19
3.020
6.857
0.189
Team that handles the call seems to be more important than shift In other words, two levels of the team, Desktop & DC, are significantly different in their average ratings (between 'team' variation) However, error is quite high (within team variation) which implies that there are other factors contributing to variation in ratings
GB TRG MATERIAL
Slide 115
Failure Mode & Effect Analysis (FMEA)
FMEA is a simple tool to prioritize the failure modes & actions
Tool
FMEA
By understanding why and how we fail, we can plan for success It works on the belief that proactiveness saves time Typically, FMEA is applied on the output of root-cause analysis, & is a better tool for focus / prioritization as compared to multi-voting We shall focus on Process FMEA (Design FMEA is used in designing products)
GB TRG MATERIAL
Slide 116
FMEA Concept & Output

Effect
Severity
Process / Product Characteristics
Failure Mode
Risk
Cause
Action
Plan
Priority
Number
Occurrence
Control
Detectability
Risk Priority Number (RPN)
S*O*D
Severity, Occurrence & Detectability are measured on a scale of 1-10
GB TRG MATERIAL
Slide 117
FMEA Concept & Output
Process / Product characteristics

Failure Mode
- Purpose of the product or Process
- How can the product / process fail to function?
Effects
- Which effects are most severe to customer?
Causes
- Which causes are most likely to occur?
Controls
- Ability for current controls to detect causes?
RPN
- Which high risk cause we work on first?
Action Plan
- Recommended actions & responsibilities
GB TRG MATERIAL
Slide 118
Scales of SOD - Severity
Severity is the seriousness of the effect of the failure mode on the customer
Rating Scale:
GB TRG MATERIAL
Slide 119
Scales of SOD - Occurrence
Occurrence is the probability that a specific cause will result in the particular failure mode
Rating Scale:
GB TRG MATERIAL
Slide 120
Scales of SOD - Detectability

Detectability is the probability that a particular cause will be detected Rating Scale:
GB TRG MATERIAL
Slide 121
FMEA Table
GB TRG MATERIAL
Slide 122
DMA C
Explore Potential Causes
GB TRG MATERIAL
Slide 123
Explore Potential Xs for Causation
GB TRG MATERIAL
Slide 124
Recall Step 6: Creating a List of Xs & Prioritization
Brainstorming FMEA
Regression, FMEA
x1 x2 x3 x4 x5 x6 x7 x8 x9 x10 x11 x12
x7 = 38% x6 = 27% x2 = 12% Exploration of the y-x relationship
Vital Xs
Fishbone
x9 = 4% x10= 4% x5 = 2% x1 x3 x4 x8 = 13% x11 x12
Trivial Xs
error
GB TRG MATERIAL
Slide 125
DMA C
Design Counter-Measures
GB TRG MATERIAL
Slide 126
Counter-Measure Matrix
Counter Measure Matrix is used to arrive at action to be taken on a root cause that would lead to the desired result If there are more than one counter-measure for a root cause, then the counter measure is prioritized using three parameters
Tool
Counter-Measure Matrix
Each counter-measure is given a rating on a scale of 1-7 (higher the better) & overall score is calculated by multiplying the 3 ratings, one with the best score is chosen
GB TRG MATERIAL
Slide 127
Counter-Measure Matrix - Example
Cost optimisation levers

CCOP
Service Desk
IR
Automation
GB TRG MATERIAL
Slide 128
Map the New Process
GB TRG MATERIAL
Slide 129
DMAI
C
Develop Control Mechanism
GB TRG MATERIAL
Slide 130
Controlling the Xs
So far, we have identified the best settings for each of the vital X The key now is to ensure that the Xs dont vary away from the targeted setting Process control is a crucial tool in ensuring that this Six Sigma project delivers lasting benefits Maintaining Xs at their target level can be done in two ways
Detection (reactive)
Prevention (proactive)
Why was change not detected?

Why did / would change occur?
GB TRG MATERIAL
Slide 131
Correction Loop
Prevention
Prevention & Detection
Mistake-Proofing
Statistical Process Control
GB TRG MATERIAL
Slide 132
Mistake-Proofing (Poka-Yoke)
It is a technique to make errors difficult to happen, if not impossible
Tool
Ground Rules of Mistake Proofing

Intelligence does not depend upon hierarchy Target tasks that require constant alert / vigilance / memory Look for cutting unproductive time to foster creativity Defects are not acceptable, in whatsoever small number It is best to make it impossible to do it wrong
Mistake-Proofing
GB TRG MATERIAL
Slide 133
Advantages of Mistake-Proofing
Easy to accomplish without any formal training Removes repetitive tasks Fosters creativity & value-addition Ensures less defects
GB TRG MATERIAL
Slide 134
Mistake-Proofing Techniques - Examples

Technique Prevention Detection
SHUTDOWN
Cameras that dont click if the shutter is on
Air-conditioners trip when detect slight over-heating
CONTROL
ATM does not accept a card inserted wrongly
Quality check at each point in the assembly
WARNING
Car security system alerting the driver that all doors are not closed
Smoke detectors
GB TRG MATERIAL
Slide 135
If Mistake-Proofing is Not Possible?
Provide guidelines
Check-lists SOPs Templates
Use visuals
Color-codes
Shapes
GB TRG MATERIAL
Slide 136
Statistical Process Control (SPC)
SPC was developed by Walter A. Shewhart in 1924
Tool
Historically, SPC has been used to monitor & control output Y
Statistical Process Control
In DMAIC, we apply SPC to control Xs (remember Y is only monitored) However, sometimes applying SPC to Y can also be beneficial in detecting trends
About SPC
Aids visual monitoring & controlling
Depends heavily on data collection
GB TRG MATERIAL
Slide 137
Basics of Control Charts
Control charts are useful for tracking process statistics over time and detecting the presence of special causes
A process is in control when most of the points fall within the bounds of the control limits, and the points do not display any nonrandom patterns
GB TRG MATERIAL
Slide 138
Purpose of Control Limits
Special Cause Variation

UCL
Common Cause Variation
CL
LCL
Special Cause Variation
Process Control is inherent to process characteristics as against Process Capability which is measured as per outside targets & specifications
GB TRG MATERIAL
Slide 139
Purpose of Control Limits
0.135%
UCL = + 3
99.73%
CL
LCL = - 3
0.135% Out of control point
Control Limits define a probabilistic level of occurrence of an out of control point
GB TRG MATERIAL
Slide 140
Do Not Over-react to Change
Loading time
UCL
Excellent Work
Change the transporter??
LCL
Distinguish between Noise & Change
GB TRG MATERIAL
Slide 141
Top Eight Indications of an Out of Control Process

1.
2.
A single point outside 3 control limits

Nine points in a row on the same side of the centerline
3.
4. 5.
Six points in a row, all increasing or all decreasing

Fourteen points in a row, alternating up and down Two out of three successive points more than 2 on the same side of the centerline Four out of five successive points beyond 1 on the same side of the centerline Fifteen points in a row within 1 on either side of center line Eight points in a row with none between 1 on either side of center line
6. 7. 8.
GB TRG MATERIAL
Slide 142
Choosing An Appropriate Control Chart
Continuous Data
Individual Data Points
Pulling one sample at fixed frequency
Variability of individual characteristics over time
Subgroups
Taking periodic grouped data
I & MR
Variability of average characteristics over time
X&R
GB TRG MATERIAL
Slide 143
Choosing An Appropriate Control Chart
Discrete Data
Defectives
Defects
P-chart
U - chart
Rest of the Control Charts are in the BB training Scope
GB TRG MATERIAL
Slide 144
Continuous data Control Charts
GB TRG MATERIAL
Slide 145
I & MR Control Chart
Average Handle Time (AHT) by an agent is a vital X for productivity. This is monitored periodically to keep it within desired operating range. Data on AHT is collected over several hours
Hour 1 2 3 4 5 6 7 8 9 10 11 12 13 14 AHT ( sec ) 65 69 67 66 63 70 71 68 64 69 63 68 84 81
15
68
GB TRG MATERIAL
Slide 146
I & MR Control Chart : Minitab Output

I-MR Chart of Temperature I & MR Chart of AHT
1
Individual V alue
80
U C L=82.93
70
_ X=69.07
60 LC L=55.20 1 2 3 4 5 6 7 8 9 O bser vation 10 11 12 13 14 15
16
M oving Range
U C L=17.04
12 8 4 0 1 2 3 4 5 6 7 8 9 O bser vation 10 11 12 13 14 15
__ M R=5.21
LC L=0
GB TRG MATERIAL
Slide 147
Discrete data Control Charts
GB TRG MATERIAL
Slide 148
P Control Chart
A call center receiving calls will have to closed within specified SLA. Team has collected data every hour to monitor process control Defective is defined as call not closed within SLA
GB TRG MATERIAL
Slide 149
P Control Chart : Minitab Output

0.4
P Chart of P defectives
0.3
UCL=0.2906
Proportion
0.2
0.1
_ P=0.0944
0.0 2 4 6 8 10 12 14 Sample 16 18 20 22 24
LCL=0
Tests performed with unequal sample sizes

Points to Remember in Control Charts
Do not apply SPC tools to processes that are known to be out on control Do not compare control limits with specification limits Do not ignore out-of-control signals if your Y is meeting the specifications & X is meeting the operating limits Ensure that observations are independent of each other Its quite possible that X is under control, but Y is out-of-specs
GB TRG MATERIAL
Slide 151
Re-compute Process Baseline & Verify Against Target
GB TRG MATERIAL
Slide 152
Validating Process Improvements

Two-Sample T-Test and CI: Cost / Indent, Status (Control Phase)
Two-sample T for Cost / Indent SE Status N Mean StDev Mean Before 7 300.7 47.6 18 Improved 7 154.1 61.6 23 Difference = mu (Before) - mu (Improved) Estimate for difference: 146.7 95% lower bound for difference: 93.8 T-Test of difference = 0 (vs >): T-Value = 4.98
P-Value = 0.000
DF = 11
I-MR charts
( stage wise )
GB TRG MATERIAL
Slide 153
Develop Action Plan to Sustain Improvement
GB TRG MATERIAL
Slide 154
How to Sustain Process Improvement

Control Plan Training & Communication Project handovers with completed project dockets Database of vital Xs
QFD / VOC
FMEA / Fishbone Six Sigma Project Audits Process Owners
SOPs
GB TRG MATERIAL
Slide 155
DMAIC SUMMARY: Problem Solving Flow
MEASURE
ANALYZE
IMPROVE
CONTROL
Business Problem
Statistical Problem
Statistical Solution
Business Solution
GB TRG MATERIAL
Slide 156
Six Sigma resource in Wipro Intranet
Q City : http://qcity.wipro.com:8080/hive/index.jsp
GB TRG MATERIAL
Slide 157
Six Sigma resource in KM
KM Link : http://knetsites.wipro.com/sites/1010/Pages/Default.aspx
GB TRG MATERIAL
Slide 158
Process Excellence Wipro Way

http://wiproway.wipro.com/default.asp
GB TRG MATERIAL
Slide 159
WI MQ Mentor List
Name
Sachin Agarwal [ MBB ]
Jyoti Prakash [ LBB ] Priya Mahadevan [ LBB ] Rashmi Salgar [ BB ]
LOB
Services Common
Services Common MIT ES & SI
Region
HO - BLR
HO - BLR HO - BLR HO - BLR
Email id
agarwal.sachin@wipro.com
jyoti.prakash1@wipro.com priya.mahadevan@wipro.com rashmi.salgar@wipro.com
Sumathi Rajesh [ BB ]
Bhakti Gokhale [ BB ]
Regional MQ
Regional MQ
S2
West
sum1.raj@wipro.com
bhakti.gokhale@wipro.com
GB TRG MATERIAL
Slide 160
Thank You
Improvement is a Journey Improvement is a Journey and and TogetherTogether We Will We Will
Proprietary to Wipro Limited
2009 Wipro Ltd - Confidential
161

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