Welcome To Lean and Six Sigma Training: CEO Anexas Europe

Welcome to Lean and Six Sigma Training
Dear Participant,
We welcome you to Lean and Six Sigma Training and hope that you find this journey enriching.
This printed material is the hard copy of the PowerPoint presentations used in the classroom. The
course material has been prepared based on the practical knowledge our consultants have gained
while implementing lean and six sigma initiatives in more than 25 organizations worldwide. The
course material is divided as:
 1 book of DMAIC Overview and Define phase (Day 1 and 2)

 1 book of Green Belt for Measure, Analyze, Improve and Control phases (Day 3 and 4)
 1 book of Black Belt for hypothesis tests (Day 5,6,7,8)
While our trainers will try to follow the sequence as per the agenda, however please note that
depending on the location and industry domain of the candidates, the trainer may choose to
change the sequence of the topics covered to suit the requirements of that specific batch. But
he/she will ensure that all the topics are covered during the course of training.
As soft copy, you have been provided a project template, which you can use to populate if you
choose to do a project while you undergo training or after you have completed the training.
Additionally Minitab exercises have been provided to you along with some real projects completed
in various domains like Banking, manufacturing, services, IT, ITES, etc.
Please feel free to contact me in case you have any queries and I will be happy to assist you. I
welcome your feedback as well as suggestions for improvements in our training and certification
programs.
Wishing you continued success in your journey towards process excellence.
Regards
Amitabh Saxena
CEO
Anexas Europe
www.anexas.net
Email : amitabh@anexas.net
Mobile (Europe) : +45 2823007

Mobile (UAE) : +971 508368495
Mobile (India) : +91 99800 20968
Mobile (KSA) : +96 65427 31565
Anexas Consultancy Services

www.anexas.net
Overview of Six Sigma
Contents
Module I : Welcome to Training
1. Introduction to Six Sigma Training 1
Module II : DMAIC Overview
2. Introduction to Six Sigma 1
3. Agenda 2
4. Define Phase 08
a. SIPOC 09
b. CTQ 12
c. Project Charter 18
d. Stakeholder Analysis 25
5. Measure Phase overview 28
a. Data Collection 30
b. Sigma level calculation 36
6. Analyse Phase Overview 39

a. Cause and Effect Diagram and Control Impact Matrix 40
b. Pareto Chart 42
c. Process Mapping Introduction 44
7. Improve Phase Overview 50

a. Brainstorming 51
b. Brainstorming Techniques 53
8. Control Phase Overview 55

a. Control Plans 57
b. Documentation 58
Module III : Basic Statistics
9. Basic Statistics 01
a. Mean, Median, Mode 02
b. Normal Distribution and Standard Deviation 06
c. Introduction to control charts 13

www.anexas.net

MODULE ‐ I
INTRODUCTION TO LEAN AND SIX SIGMA TRAINING
Anexas
Lean Six Sigma
Training and Workshop
6 Sigma
Project Management
Six Sigma
Performance
Improvement
Anexas Consultancy Services, India

Anexas Arabia, KSA
Anexas FZE. UAE
Group companies of
Anexas Europe
Copenhagen
info@anexas.net
• Anexas is a global network of attached

professionals and organizations serving
the wide spectrum of industries. We
About operate in various countries and have

more than 100 professionals working
with member firms and partners around
Anexas Europe the world.
• Our mission is to provide committed,

customized and efficient service to our
customers and assist the organizations
and individuals to achieve breakthrough
results
• Trained more than 10000 professionals

across the world from various industries
• Black Belts, Master Black Belts certified

by Anexas are well placed in
organizations globally like King Fahad
Medical City, Ministry of Health, KSA,
Siemens, Ford, Tata Consultancy, Eicher,
Office Tiger, Deutsche Bank, AXA, Riyadh
Bank, Apollo Hospitals, Hewlet Packard,
Tata Sky, etc. Anexas Consultancy Services
1
About Anexas
A
Anexas is
i a Six
Si Sigma
Si Training
T i i and
dCConsulting
l i organization
i i
with presence across the globe Management
Process Management System
 Group of more than 50 process improvement

consultants located in 6 countries across the globe (US,
UK, UAE, Saudi Arabia, Singapore and India)
 Black Belts certified by Anexas are well placed in

organizations globally
 We conduct training programs worldwide in more than

30 cities.
 For more information visit website www.anexas.net

Global Clients - Worldwide Programs
2
Programs Worldwide
Anexas has received Worldwide Awards in UK, India, Middle East,

Thailand
Amitabh Saxena, CEO Anexas, receiving Best Lean and Six Sigma Institute award from
Chetan Bhagat, the Golden Peacock award For Innovative Services from Institute of Directors,
London, Global Achievers award from Deputy Prime Minister of Thailand
6
3
Anexas invited to give away World Hospital Management Awards
7
Now we introduce ourselves…
• Your name
• What you do at your
organization
• Any one thing which not
many people know about
you!
4
Administrivia
• Breaks
• Cell Phones
• Facilities
• Speed – As per your
requirements
• Workshop- p focused on y
your
participation
• Any other suggestion…
•
RELIANCE INDUSTRIES
LARSEN & TOUBRO
ABB
CITI BANK
ALLIEDSIGNAL - INDIA
ASEA BROWN BOVERI KODAK GTL Ltd
BLACK & DECKER
BOMBARDIER
DUPONT
DOW CHEMICAL
FEDERAL EXPRESS
JOHNSON & JOHNSON NAVISTAR WIPRO

TEXAS INSTRUMENTS POLAROID GODREJ
J.P. MORGAN SEAGATE TECHNOLOGIES MARUTI UDYOG
3M SIEBE APPLIANCE CONTROLS BAJAJ AUTO
GE CITIBANK SATYAM COMPUTERS
SONY TOSHIBA MODI XEROX
ALLIEDSIGNAL/HONEYWELL
GLAXCOSMITHKLINE
5
History of Six Sigma
• Conceptualized at Motorola during 1979

when in a management meeting an
executive p
proclaimed.
“The real problem at Motorola is that our quality stinks”

stinks”
• Chief Executive Bob Galvin threw a challenge in 1981 to achieve

5 fold improvement in a span of five years.
• Bill Smith, an engineer of Motorola presented a paper

in 1985, established in a correlation between the
extent of repair a product underwent during
manufacturing and its field life.
• Mikhel Harry, subsequently developed a structured Six

Sigma approach.
Motorola
• Savings $ 15 billion in 11 years
1st receipient -
• Sales grew over 9 years by Malcolm Balridge
4.6 x Award 1988
• Mfg costs reduced by $ 1.4

• Pioneered the 80’s
billion from 1987 to 1994
Quality movement in US
• Profits went up 9.2 x
• Stock rose 5.5 x
• Pager order to shipment

came down from 56 days to < 1 • Approach to Quality
hour driven by Total Customer
Satisfaction (TCS)
• Cycle time to file patents came
down from 2 years to < 90 days • Key drivers of TCS were
Six Sigma and Cycle
Time Reduction
6
• 2000 Projects Deployed
• Benefits $12 billion over 5 years
• Annual benefits over 2.5 billion
GE
• 1% increase in uptime
Most admired company
“The best Six Sigma

projects begin outside the
organisation not inside.
How can we make our
customer more GE Capital
compeititive; What is
critical to my customers
success.”
GE, Director
GE Lighting GE Power
Understanding the Differences
SIGMA AREA SPELLING MONEY TIME DISTANCE
3
3 Floor space off
Fl 1.5
1 5 misspelled
i ll d $2.7
$2 7 million
illi 3 1/2 months
th Coast-to-coast
C tt t
a small hard- words per page indebtedness per per century trip
ware store in a book $1 billion in assets
4 Floor space of 1 misspelled $63,000 indebted- 2 1/2 days per 45 minutes of

a typical living word per 30 pages ness per $1 billion century freeway
room in a book in assets driving(in
any direction
5 Size of the 1 misspelled word $570 indebtedness 30 minutes A trip to the

bottom of in a set of per $1 billion in per century local gas
your telephone encyclopedias assets station
6 Size of a 1 misspelled word $2 indebtedness 6 seconds 4 steps in any

typical in all of the books per $1 billion per century direction
diamond contained in a assets
small library
7
Getting to Six Sigma
 PPM
2 308,537
3 66 807
66,807
4 6,210
5 233
6 3.4
Class Excercise Class Excercise
Lets Start
8

MODULE ‐ II
INTRODUCTION TO LEAN AND SIX SIGMA
DMAIC Overview
Welcome to Six Sigma Training
Six Sigma Overview
Six Sigma Overview

www.anexas.net
Lean and Six Sigma Overview -

Objectives
At the end of the module participants will:
 Understand why an organization launches Six

Sigma
 Understand the flow of the DMAIC methodology for

process improvement
 Have practised some of the relevant tools in DMAIC

methodology
 Know when and in what context to use the DMAIC

methodology and tools
Black Belt Training www.anexas.net

2
1
Agenda for Yellow, Green and Black Belt Training
( Day 1 and 2 is Yellow Belt, Day 1,2,3,4 is Green Belt training)
Time Day 1 Day 2 Day 3 Day 4
Introduction to Measure
10:00 SPACE R Measure Phase Details Im prove Phase Details
P hase – Data Collection
Baseline S igm a Brainstorm ing
10:30 Introduction M etrics
Calculation techniques and Pilot
Introduction to Analyze
Benchmarking, 6-3-5,
Introduction to Six phase -V A-N VA, Measurem ent System
11:00 P ugh m atrix, 6 Hats
Sigm a P rocess mapping, Analysis
techniques
Lean tools
Roles and Lean P rinciples : JIT,
Cause & Effect Diagram
12:00 Responsibilities in Six V SM , M uda, C ontrol P hase Details
/ Matrix
Sigm a
13:00 Break Break Break B reak
Define Phase – Detailed Analyze
Pareto Analysis with
13:45 Introduction P hase: Introduction to 5 ‘S’, Poka Y oke
Exercise
M initab
M initab Analysis :
S IPOC, Project Control Charts – XBar-
Introduction to Improve Graphical Anla ysis,
14:30 Charter, C TQ, Kano R. X-M R, p, np, c, and u
Phase Box Plots, Scatter
Analysis charts
Plots, Pareto
Project S election by
Introduction to Control Im prove Phase – FMEA
15:30 group and Application Revision
Phase with exercise
of Define Tools
Change Management P resentations by Project Review s P rojects and case
16:00 and Stakeholder P articipants, Questions P resentations by studies from different
Analysis and Answers P articipants companies
17.30 W rap-up Wrap-up Wrap-up W rap-up
1. The Agenda shows the topics to be covered during the program. The trainer can change the timings or schedule of the topics as per the specific requirements
of the trainees. However, it would be always ensured that all the topics are covered during the training
2. In case of combined batch of Green Belts and Black belts, the Day 4 can be conducted as Day 8 of the program so that Green Belts can stop the training after
day 3 and rejoin the day 8, which would be same as Day 4 mentioned above
3
Agenda for Black Belt Training

(Day 1,2,3,4,5,6,7,8 is complete Black Belt training)
Time Day 5 Day 6 Day 7 Day 8
Test of Proportions, 2 Hypothesis Tests Full Factorial
9:30 Revision
proportions test Revision Experiments Analysis
Revision of Green Belt Use of Design of
10:00 Chi Square test Exercises
topics Experiments
Basic Statistical Tests for Continuous X Hypothesis Tests for Analysis in Minitab with
11:00
Analysis on Minitab and Y non-normal data exercises
Introduction to Correlation
12:00 Exercises Case study - Exercise
Hypothesis Testing and Regression
13:00 Break Break Break Break
Tests for Attribute X Introduction to Design
13:45 Exercises
and Continuous Y of Experiments
Revision
Test of Means, 1-z, 1-t,
14:30 Multiple Regression Types of designs
2-t test
Test of means for more
Exercises on Multiple
15:30 than 2 samples - OFAT design
Regression
ANOVA Revision and Case
Presentations by studies
Tests for Attribute X Full Factorial
16:00 Participants, Questions
Participants
and Y Experiments
and Answers
17.30 Wrap-up Wrap-up Wrap-up Wrap-up
The Agenda shows the topics to be covered during the program. The trainer can change the timings or schedule of the topics as per the specific
requirements of the trainees. However, it would be always ensured that all the topics are covered during the training

4
2
Lean and Six Sigma
Attitude and Discipline
 Customer Focus
 View Quality externally from the customer’s perspective
 Measure the same way that the customer does
 Meet customer expectations every time
 Continuous improvement cycle
Systematic
Scientific
Fact-based
Data-driven
 Process focus
Customers Have All The Votes Concerning

Extent Of Satisfaction And Value

5
Commitments
Customers
Other stakeholders Community
Six Sigma
Shareholders Employees
& Investors

6
3
Operational Excellence
 "Eighty-five percent of the reasons for failure to meet customer

expectations are related to deficiencies in systems and processes,
not to the fact that our employees are not up to the challenge…"
 “The Manager's role is to promote process improvement.”
DEMING

7
Harvesting the Fruit of Six Sigma
Sweet Fruit
Design for Six Sigma
5 Wall,
5 W ll Improve
I Designs
D i
Bulk of Fruit
Process Characterization
and Optimization
4 Wall, Improve Processes

Low Hanging Fruit
Seven Basic Tools
3 Wall, Beat Up Suppliers

Ground Fruit
Logic and Intuition
Many organizations in the world have achieved huge savings and improved
bottom lines by implementing Six Sigma © 1994 Dr. Mikel J. Harry - V4.0

8
4
Roles & Responsibilities
• Owns vision, direction, • Leads change

integration, results
Executive
• Support Six Sigma • Supports Black Belts by
• Ensure success of participating on project
GB/BB projects teams
Yellow Belts Green Belts
All
• Develops • Apply Breakthrough
deployment and Employees
Strategy to specific
Strategy (White projects, lead and
• Supports cultural Belts)
e ts) direct teams to
change execute
• Understand vision
Champion / projects
• Apply concepts to their Black Belts
Sponsor job and work area
• Owns the process in which

GB/BB works • Trains and coaches Black
• Challenges GB findings Process Master Belts , Green Belts and
leaders
Owner Black Belt
9
A Typical One Wave Implementation Plan at an organization
High Level Improvement Timeline

Process Aug Sept Oct Nov Dec Jan Feb
Step 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Deliverables
Charter
Define Customer Focus
Survey for Project Selection SIPOC
Measures
Measure Collection Plan
Baseline Sigma
Mapping/Analysis
Analyse Vital Few
Opportunity quantification
Solutions
Improve Evaluate
Implementation Plan
Procedures
Control/Verify Monitoring
Communication
Green Belt projects

Black Belt projects
10
5
Six Sigma Trainings at an organization
 White Belt Training (Half Day Awareness Program)

 Yellow Belt Training - Awareness Programme
with/without Business Game (1 Day)
 Champions Training (1 Day)
 Green Belt Training (4 Days)
 Black Belt Training (4 Days after GB)
 During Induction, the employees are exposed to Six
Sigma philosophy (Half an hour module)
 Master Black Belt (5 days after BB )
Green Belts and Black Belts are required to pass an exam and demonstrate success in their
projects (approved by financial analyst for financial savings) to attain certification
11
DMAIC : An Improvement Methodology
DEFINE
CONTROL
MEASURE
IMPROVE ANALYSE

12
6
 DEFINE: Set direction for improvement
 MEASURE: Collect reliable data to

understand current process performance
 ANALYSE: Identify problem’s root causes

through process and data analysis
 IMPROVE: Determine new improved

process design
d i
 CONTROL: Ensure improvement

effectiveness over time
DMAIC Overview
13
DMAIC Cards Exercise – 10 minutes

 You are given sheets, each of which states an activity in DMAIC
cycle
 Based on your understanding of DMAIC till now, classify each of

the activity to the respective phase of DMAIC (5 minutes)
 Paste the sheets under the phase you think they belong to (3
minutes)
 Look at what others have done. If you disagree with their

classification, give your suggestions and change the place of that
sheet
h t (2 minutes)
i t )
 Trainer will give feedback after the exercise

14
7
DEFINE
CONTROL
MEASURE
IMPROVE ANALYSE

15
DEFINE Roadmap
Define Measure Analyze Improve Control
High Level Customer Project

Process Map CTQs Charter
(SIPOC)
 Types of customers  Business
 Methods of collecting Opportunities
 Process
D fi iti
Definitions customer requirements  Preliminary Problem
 Translate customer needs Statement
 Connecting the
Customer to Your into specific requirement  Goal statement
Process  Customer requirements  Project Scope
analysis and prioritization  Milestones
 Roles
8
Define
Objectives :
 Set direction for improvement
p
Steps
 Have a high level view of the process
 SIPOC
 Know the customers’ needs and identify
their key performance requirements
 CTQs
 Formalise the charter of the improvement
project
 Charter

17
What is a process ?
A set of activities that takes one or
more inputs and transforms them into
outputs that are of value to the
customer
Inputs Outputs
Supplier(s) Customer(s)
“Process”

18
9
DEFINE Identify the Process
The 5 Key Elements of a Process
Supplier The provider of inputs to your process
Input Materials, resources or data required to execute your

process
Process A collection of activities that takes one or more kinds of

input and creates output that is of value to the customer
Output The products or services that result from the process
Customer The recipient of the process output

19
High Level Process Mapping
S I P O C
Suppliers Inputs Process Outputs Customers

20
10
Steps to Process Mapping

 1. Define business process to be reviewed – name it – agree on beginning and end of
process – bound it.
 2. Identify primary outputs, the customers who receive them
 Use nouns for outputs (e.g. sales call, proposal)
 3. Identify the process steps using brainstorming and affinity techniques
Hints: Start by rapidly writing process steps on cards and placing them on the wall
 Write large
 Don’t try to establish order
 Don’t discuss process steps in detail
 4. Use brainstorming and affinity techniques to identify critical inputs which affect the
quality of the process
 5. For each critical input, identify the “supplier” who provides it
 6. Validate to be sure the map represents the situation as it really is today (the “as is”
map) – not how you think it is, or how it should be

21
Your Project Example Identify the Process
Build a SIPOC (20 Minutes)
What How Who Timin

g
Introduction  Introduce the purpose of the Trainer 2 min
exercise
 List 5-7 steps of your process in Yellow

Preparation which you are working for the Belts 5 min
project
Build your  Build a high level process map Yellow 8 min

SIPOC using the SIPOC model Belts
Present your  Present your SIPOC to Presenter 5 min

SIPOC everyone from your
group

22
11
In plenary session.
 Build the SIPOC of the your

process
 10 min
5 4 1 2 3
S I P O C
Suppliers Inputs Process Outputs Customers
Start E d
End
5 - 7 major steps

23
DEFINE Determine CTQs
What is a CTQ?
(Critical to Quality)
Any measurable product / service
characteristics that is
important to the customer
from the customer’s point of view.

24
12
Customer Oriented Mind Set

Ask these questions:
 How does the customer view my process?
 What does the customer look at to measure
my performance?
Customer View
organization
Process
Our View

25
How to determine performance criteria ? CTQs
Voice of the Define

Identify customers Customer the CTQs
 Identify customers  Review existing VOC  Consolidate / organise

 Define customer data all customer data
segments  Decide what to collect  Translate VOC to
 Prioritize customer and how specific needs and to
segments  Collect data CTQs
 Prioritise CTQs
 Validate with customer

26
13
Who is a Customer?
Customers are recipients of products and/or services.
Customer
External Internal
Product/Service Product/Service

27
Define Customer Segments

Segmentation is recommended to focus customer research on the
most important customers:
 Review your list of customers

 Determine logical customer segments
Revenue/Customer Geographic location Size of deal
Business
Customers Volume
80%
Large
Medium
Small
20%

28
14
Gather VOC Data

Surveys
Personal Visits
Project Team 1
Questionnaires
Interviews
Project Team 2
Phone Calls
Customer
Focus Groups
Project Team 3
29
Different Ways to Listen to the Voice of the Customer

Learn about a specific customer’s point of view on service issues,
+ + Interview product/service attributes, and performance indicators/measures.
$$$
pp
Supports development
p of hypothesis
yp about customer needs.
Organize information from the collective point of view of a group of

Focus Group customers that represent a segment. Helps clarify and define customer
needs.
Measure the needs or the importance and performance of a product,

Survey service or attribute across an entire segment or group of segments.
Furnishes quantitative data.
It is the organization initiative to achieve the delivery of the brand

Customer Survey promise. It consists in measuring customer satisfaction versus
customer expectations through a well thought questionnaire.
-- $
Collect and classify customer feedback about product performance,
Customer features and attributes – classify by type across product lines.
Complaint Data Furnishes qualitative and quantitative data.

30
15
Voice Of Customer Translation Matrix
VOC S i /
Service/ Specific
S ifi Needs
N d O t t
Output
High-Level Need Quality Issue Statement Characteristic
Example: Speed I want to receive my Turnaround time from

“It takes too long to get project within 30 project communicated from
my project done ” minutes after I send an the customer to project
email communication to received by the customer
you

31
Accurate Translation for the Customer Need is

Critical!
 Must be written from the customer’s perspective

 Write the need, not the solution
 Write the need in complete sentences, examples help
 Use measurable terms
 Be concise
 Write
W it from
f a positive
iti perspective
ti
 Validate the need with the customer

32
16
Prioritize your Customers CTQs

From all the CTQs you get from your customers you usually need to
prioritize them to find out in which you are going to work.
In order to do so you can differentiate them into three categories:

 “Must have”, are those that are critical to do your business.
 “Good to have”, are those that are important to stay and grow in
the business. They work after the “must have” have been
addressed
 “Nice to have”; they work as business differentiator
Example: Coffee
 Cup clean
Must
Must have!
 Coffee hot
 Choice in flavor
Good to have!
 Choice in type
 Chocolate square
Nice to have!
 Chocolate nut
33
Your Project Example Identify the CTQs
Identify your CTQs (10 Minutes)
What How Who Timi

ng
exercise
 List the CTQs of your project Participants

Preparation 5 min
Write on flip  Write the CTQs on flip chart Participants 2min

chart
h t
Present your  Present your CTQs to everyone Presenter 1min

CTQs from your
group

34
17
DMAIC Project Charter
Project No.:
Project Name: Process :
Resource Plan Team Members

Champion / Sponsor: Text
Green / Black Belt:
Functional Managers/Process Owner:
Coach / Master Black Belt:
Problem Statement Scope

Text Text
Goal Statement Customer CTQ’s

Text Text
Estimate Financial Opportunities / Intangible Benefits High Level Project Milestone

Text Text
Validation
Green / Black Belt Master Black Belt Process Owner
CEO Financial Analyst Champion / Sponsor

35
DEFINE Project Charter
Problem and Goal Statements: Definitions
The purpose of the problem statement

is to describe what is wrong
The goal statement defines

the team’s improvement objective

36
18
Problem Statement: Description of the Problem
 What is wrong in not meeting our customer’s needs?
 When and where does the problem occur?
 How big is the problem?
 What
What’s
s the impact of the problem?
 What, Where, Since When, How big, How it impacts
 Do not write Why? And Who is responsible for the problem

37
Is Your Problem Statement Well Written?
Poor Example:p
Because our customers are dissatisfied with our service, they are late paying
their bills.
Improved Example:
In the last 2 years (when) 20% of our customers in ABC process (where)
were over 60 days late (what) paying our invoices. This negatively affects
our operating cash flow (how it impacts or consequence).

38
19
Goal Statement
 Defines what improvement the team is seeking to accomplish,
i
i.e., what
h tddo we wantt th
the d
defect
f t rate
t to
t be?
b ?
 Tends to start broadly – eventually should include measurable target or
specification limit and completion date
 Must not assign blame, presume cause, or prescribe solution
 Has four parts:
• Starts with a verb (reduce, eliminate, control, increase)
• Focus of project (cycle time, accuracy)
• Target (by 50%, by 75%)
• Deadline
 Needs to be SMART
39
What is the Business Opportunity ?

The business opportunities links a project to the strategic priorities of
th business
the b i b
by addressing
dd i ththe ffollowing
ll i questions:
ti
 How will this project drive business initiatives and goals?
 How this project will impact organization values?
 How will this project impact the customer?
 Why is it important to do now? Why is it a priority?
 What are the consequences of not doing it now?
 What are the expected financial benefits (revenue and/or cost
reduction)?

40
20
Need to Estimate Benefits Early in the Process
 Why estimate benefits now?

• Prioritize this opportunity among many
• Focus and motivate the team
 What are the criteria for benefits?
• Directly linked to a project or group of projects (vs.
market conditions, e.g.)
• Incremental
• Auditable

41
Where are Potential Benefits ?
Incremental Revenue Cost Reduction
 Increased sales price  Process more efficient (less cost of

poor quality)
 Increased sales volume
 Less resources involved to deliver
 Reduction of customer attrition same result or more
 ...  Less rework
 Time value added from productivity
gain
 ...

42
21
Project Scope
 What process will the team focus on?

 What are the boundaries of the process we are to improve?
Start point? End point?
 What resources are available to the team?
 What (if anything) is out of bounds for the team?
 What (if any) constraints must the team work under?
 What is the time commitment expected of team members?
What will happen to our “regular jobs” while we are doing the project?

43
Milestones - Project Plan

 A project plan with key steps and target completion dates
 Tied to phases of DMAIC process, with defined tollgate reviews
 Realistic
 Documented, shared with all project team members and stakeholders,
and updated regularly

44
22
Roles & Responsibilities

 How do you want the PO to work with the BB/GB ?
 How do you want the Sponsor to work with the team?
 Is the team’s role to implement or recommend?
 When must the team go to the Sponsor and Six Sigma Leader for
approval?
What authority does the team have to act independently?
 What and how do you want to inform the Sponsor about the team’s
progress?
 What is the role of the Six Sigma Black/Green Belt and the Six Sigma
Leader ?
 Are the right members on the team? Functionally? Hierarchically?

45
Formalise the improvement project charter
Key elements :
 What is the problem statement?
 What goal statement do we set for ourselves?
 What are the estimated financial benefits ?
 What is or is not included in the project?
 What are the milestones for the project ?
 Who are the players concerned and what is their role ?

46
23
DMAIC Project Charter
Project No.:
Project Name: Process :
Resource Plan Team Members

Champion / Sponsor: Text
Green / Black Belt:
Functional Managers/Process Owner:
Coach / Master Black Belt:
Problem Statement Scope

Text Text
Goal Statement Customer CTQ’s

Text Text
Estimate Benefits / Financial Opportunities High Level Project Milestone

Text Text
Validation
Green / Black Belt Master Black Belt Process Owner
CEO Financial Analyst Champion / Sponsor

47
Your Project Example Project Charter
Write your Project charter (30 minutes)
What How Who Timi

ng
exercise
 Write Project charter making Participants

Preparation certain assumptions 15
min
Write on flip
p  Write the p
project
j p Participants
Charter on flip p 5 min
chart chart
Present your  Present your Project Charter to Presenter 8 min

Charter everyone from your
group

48
24
DEFINE Change Management
Q x A = E
Quality Acceptance Effectiveness

49
Analyzing Stakeholders Position

Stakeholders analysis
Strongly Moderately Moderately Strongly
N
Names A i t
Against A i t
Against N t l
Neutral S
Supportive
ti Supportive
S ti
Steps:
1. Plot where individuals currently are with regard to desired change ( = current)
2. Plot where individuals need to be (X = desired) in order to successfully accomplish desired change – identify
gaps between current and desired positions
3. Indicate how individuals are linked to each other, draw lines to indicate an influence link using
an arrow (  ) to indicate who influences whom
4. Plan action steps for closing gaps
50
25
Analyzing Sources of Resistance

TPC matrix
Source of
Definition of causes of resistance Examples from this change
Resistance
 Habit and inertia
Technical  Difficulty in learning new skills

 Lack of skills
 Threats to old guard from new guard

 Relationships and networks
Political
 Loss
L off power or authority
th it
 Self-preservation
 Selective perception
Cultural  Old "mindset"
 Strong values hampering change

51
Collecting Elements of Proof

3 Ds matrix
Variety Of Approaches
Approaches... Elements of proof
Produce Data:
 Internal sources
 External networks
Show Demonstration:
 Finding examples
 Best practices
 Visiting other organizations
Generate Demand:
 Leadership modeling
 High standards
 “Walk the talk”

52
26
DEFINE SUMMARY
Purpose: To set set direction for improvement project by developing a team charter. By
defining the customers and their requirements (Critical To Quality = CTQs), mapping
the high level business process to be improved.
High Level Map - SIPOC

Suppliers Inputs Process Outputs Customers
Use Survey or
Focus Groups?
Voice of Customer (VOC)

•Complete high level “as-is” VOC Key Issues Requirements
process map, identifying Project Charter

suppliers, inputs, 5-7 high level Problem Statement:
activities, outputs & customers Goal:
Business Opportunity:
Scope:
•Gather and display data Roles and responsibilities:
Milestones:
verifying customer
requirements (CTQs)
•Develop charter to include:
–Problem statement
–Goal for improvement
–Business opportunity
–Scope of project
–Milestones for completion
–Roles
53
Define Phase Tools
 SIPOC
 VOC – CTQ – KANO ANALYSIS
 PROJECT CHARTER
 STAEKHOLDER ANALYSIS

54
27
DEFINE
CONTROL
MEASURE
IMPROVE ANALYSE

55
Measure
Objective :
 Collect reliable data to understand current
process performance
Steps :
Choose the data to be collected (output
measures, process and input measures)
Organize the data collection plan (What ? Why ?
When? Who? How? How many ?)
Study process variation
Understand the capability of the process

56
28
Choose the data to be collected
Input measures Process measures Output measures
Internal process measures Output measurements

The key quality and
predict the enable you to verify that
delivery expectations
end performance when the process satisfies
from yyour suppliers.
pp
correlated to the expected
(performance predictors)
output measurements. performance level

57
Key principles for investigation
Y= f (X)
Response Predictor
 Y  X1...XN
 Dependent  Independent
 Output
O t t I tP
 Input-Process
variables
 Effect  Cause
 Symptom  Problem
 Monitor  Control
58
29
What ? Why ? When ? Who? How? How many?
Questions Measure 1 Measure 2 Measure 3 Measure 4
What ?
Why ?
When ?
Who ?
How ?
How many ?

59
DEFINE
CONTROL
MEASURE
IMPROVE ANALYSE

60
30
Measure
There are 2 types of Data
 Continuous (Variable)
 It is continuous and q
quantitative in nature
 It can contain decimal point
 It has a unit
 Examples : Project completion time : 23.6 days
 Thumb Rule : Good sample size is 30-50 for studying variable data
 Attribute (Discrete)
 It is qualitative in nature
 It has an attribute and various categories of an attribute, which can
b d
be described
ib d b
by di
discrete
t numbers:
b
 Example: Project status (Attribute) – Delayed, Not delayed
(Categories)
Gender (Attribute) – Male, Female (Categories)
Each of the categories above can be described in terms of counts, for
example 30 males and 20 females. You cannot have 30.1 males!
 Thumb Rule : 200-1100 is a good sample size for attribute data

61
Measure
Objectives :
 Collect reliable data to understand current process performance
Steps :
 Choose the data to collect (output measures, process and input
measures)
 Organise the data collection plan (What ? Why ? When? Who?
How? How many ?)
Study process variation
Understand the capability of the process

62
31
Variation over a period of time : histogram
Definition The histogram illustrates the shape (or distribution) of the data by indicating
how often different values appear
40
Example
35
30 Number of days to produce a contract

Frequency
25
20
15
10
0
1 2 3 4 5 6 7 8
Number of days
63
Interpretation of the histogram
Key Questions :
 What
Wh t iis th
the shape
h off th
the di
distribution
t ib ti ?
 What is the central trend (“center”) of the distribution ?
 What is the variation (“spread”) of the distribution ? Is

the curve wide or narrow?
Are we confronted with a problem of “process centring”

within the limits of customers' expectations or do we
have a problem of “too much variation” ?

64
32
Basic Statistics
(Please refer to the slides on Basic Statistics)

65
The sigma of the process
Every human activity has variability....

Customer Specification
p
XX X
1X
X XX X
XXXXXXX X
XXXXXXXXXX d f t
defects
X X XXXXXXXXXX XXX
Target
Comparing process variation and customer specification is the essence of Six Sigma

66
33
The six sigma concept
A 3 sigma process because 3 standard deviations

fit between target and spec
Before
Target Customer
3 Sigma 1 Specification
process
2
4,54% Defects
3
Customer
Target Specification
Aft
After 1
6 Sigma 2 “No Defects”
3
Process 4
5
6
Reducing variation creates high quality products or services

67
What is 6 sigma ?
 A measurement scale which
compares the output of a process
to the customer
customer'ss requirements
Process Sigma 2 3 4 5 6
Defects Per Million Opportunities

(DPMO) 308 537 66 807 6 210 233 3.4

68
34
What is 6 sigma ?
Examples

69
An Example
Here’s one way to look at it…

Consider a hockey goalie whose primary job is to
block shots taken by opponents.
A good way to rate performance would be the

number of shots blocked as a fraction of the
number of shots faced.
Let’s assume the following: our goalie plays 32

games per year (a full season) and faces an average
of 8 shots per game for a total of 256 shots per year.
If our goalie has “Six Sigma” capability, only one

shot in 1149 seasons will score.
The championship is guaranteed.

70
35
Compute Process Sigma
Key Definitions
Form
Unit: the item produced or processed
Critical field
Defect: any event that does not meet the specification of a with missing
CTQ as defined by the customer Information
Defect opportunity: any event which can be measured # Critical fields

that provides a chance of not meeting a customer on the form
requirement (specification)

71
Calculate process sigma : formula
Calculate the number of Defects Per Million Opportunities
(No. of Defects)
DPMO = x 1 000 000
No. Of Units x No. of opportunities
In the Sigma table, look at the Sigma value relating to the DPMO determined

72
36
Conversion Table
Long term Yield Process Sigma Defects per 1,000,000 Long term Yield Process Sigma Defects per 1,000,000
Rendement Long terme Sigma du processus Défauts par 1.000.000 Rendement Long terme Sigma du processus Défauts par 1.000.000
99.99966% 6.0 3.4 93.320% 3.0 66,800
99.9995% 5.9 5 91.920% 2.9 80,800
99.9992% 5.8 8 90.320% 2.8 96,800
99.9990% 5.7 10 88.50% 2.7 115,000
99.9980% 5.6 20 86.50% 2.6 135,000
99.9970% 5.5 30 84.20% 2.5 158,000
99.9960% 5.4 40 81.60% 2.4 184,000
99 9930%
99.9930% 53
5.3 70 78 80%
78.80% 23
2.3 212 000
212,000
99.9900% 5.2 100 75.80% 2.2 242,000
99.9850% 5.1 150 72.60% 2.1 274,000
99.9770% 5.0 230 69.20% 2.0 308,000
99.9670% 4.9 330 65.60% 1.9 344,000
99.9520% 4.8 480 61.80% 1.8 382,000
99.9320% 4.7 680 58.00% 1.7 420,000
99.9040% 4.6 960 54.00% 1.6 460,000
99.8650% 4.5 1,350 50% 1.5 500,000
99.8140% 4.4 1,860 46% 1.4 540,000
99.7450% 4.3 2,550 43% 1.3 570,000
99.6540% 4.2 3,460 39% 1.2 610,000
99.5340% 4.1 4,660 35% 1.1 650,000
99.3790% 4.0 6,210 31% 1.0 690,000
99.1810% 3.9 8,190 28% 0.9 720,000
98.930% 3.8 10,700 25% 0.8 750,000
98.610% 3.7 13,900 22% 0.7 780,000
98.220% 3.6 17,800 19% 0.6 810,000
97.730% 3.5 22,700 16% 0.5 840,000
97.130% 3.4 28,700 14% 0.4 860,000
96.410% 3 .3 35,900 12% 0.3 880,000
95.540% 3.2 44,600 10% 0.2 900,000
94.520%
Black Belt Training 3.1 54,800
www.anexas.net 8% 0.1 920,000
73
Exercise
In plenary.
Calculate the Sigma of your process assuming the problem

statement to be correct
 DPMO
 Process Sigma 

74
37
MEASURE
Purpose : To measure and understand baseline performance for the current process
by collecting reliable data (quantitative & qualitative)
Data Collection Graphical Display

Normal Probability Plot
What Who Where Formula
:
•Develop a data collection plan •Display data in graphic form to determine the type of
– Operational definition distribution, the metrics to understand variation and set
– Sampling goals for the improvement strategy.
– Measurement System Analysis (MSA –Normal Distribution described by Mean and Standard
including Gage R&R) deviation
–Skewed Distribution described by Q1 (or Q3) and Inter
Quartile Range
–Long tailed distribution described by Median and Span 5-95
Customer oriented mindset
Customers'
View
Calculate Process Sigma
# Defects “Outside” Spec Limit
Our View
Upper Spec Limit
•Select the measure your customer
uses to judge your performance (Key
Output Measure Y) Defects
•Plan to collect CONTINUOUS data
Black Belt Training www.anexas.net •Compute baseline sigma 75
DEFINE
CONTROL
MEASURE
IMPROVE ANALYSE

76
38
Analyse
Objective :
 Identify problem
problem’s
s root causes
through process and data analysis
Steps :
 Cause and Effect Diagram
 C
Control Impact
p matrix
 Pareto chart
 Value analysis in using process
map

77
Analyse
Consolidating the analyses prior to root

causes validation

78
39
Cause & effect diagram
Measurement Methods Machinery
Effect
Potential causes (Xs) (Y)
Environment People Materials
 Summarise potential causes

 Allows identification of root causes
 Potential root causes need to be validated by data

79
Fish Bone Diagram/Cause & Effect/Ishikawa Diagram
Y=f (X1, X2, …, Xn)
X ’s Y
Mother Nature Material Method
State as a
question:
“Why are …”
Machines Measures Mankind (people)

Notes:
Use the traditional categories: Machines, Methods, Mother Nature - What are the causes of defects, variation, customer dissatisfaction, inefficiencies-
 Measurement, Materials, People Prioritise /
- OR, make up your own, based on your process problems Vote on the few main causes. Next, you will collect data to validate relationship
/causal relationship.
- Remember, Y is the key output measure and X’s are process or input variables

80
40
Prioritisation of Xs: Control / Impact Matrix
Y=f (X1, X2, …, Xn)
IMPACT
High Medium Low
In Our
Control
C
O
N
T
R
O
L Out Of
Our
Control
Classify your Xs coming from your C/E Diagram (Fishbone Diagram).

81
Analyse roadmap
Data Analysis
“As Is” Process Map & Analysis
1
*
MOT
CTQ
2
Root Cause Identification
Root Cause validation with data

82
41
Analyse
Analyse data : Pareto chart

83
Pareto chart
A tool to graphically represent the discrete data in categories and

Definition identify the few causes basic to most of the defects (the 80 / 20
principle)
Frequency
C A B D E

84
42
Example
Pareto chart example
200 100
Number Of Units Investigated: 5,000
*f = frequency
Cumulative percentages
180 90 Line
160 80
f* of D+B+F
140 70
f*f*
ofof
D+BD+B
120
Frequency
Percentage
60
f* of D
100 50
f* of D
80 40
P
60 30
40 20
20 10
0
D B F A C E Other
Type of Defect
85
Analyse
Analyse process mapping

86
43
Versions of a process
What you think What it really is… What it should be… What it
it is... could be

87
Process flowchart conventions

Dial Yes
Lift Say
# Ring Answer?
Receiver “Hello”
No
Have
Hang Up Conversation
LEGEND
Hang Up
Start /End
Task Decision
Direction

88
44
Process mapping analysis
Types of analysis
 Moments of truth
 At what moment does the
customer get an impression
about the process?
 Nature of work
 Which tasks really add value?
 Work flow
 How much active time and
waiting time in the process?

89
Process mapping analysis

 3 criteria to qualify a task “with
added value” from the customers'
point of view
 The step transforms the
input (product or service)
and brings it closer to
completion
 The step is performed right
the first time
 The customer is willing to
pay for this step

90
45
LEAN PRINCIPLES
 IDENTIFY VALUE
 VSM
 IDENTIFY VA NVA
 IMPLEMENT PULL AND
FLOW
 PERFECT
The detailed Lean Module is taken separately during the course

91
7 (8) Wastes
 Intellect
 Scrap / Rework
 Waiting
 Inventory
 Motion / Movement
 Transportation
 Over processing
 Overproduction

92
46
As-Is Process Map
Process Name:
Elapsed Time
Tips: Attach extra pages do not squeeze/wrap around, as the visual will be misleading.
Keep the flow and level of detail (what vs. how) consistent. When you are finished, place a number (1-10…) next to each box to use in the
value analysis.

93
“As-Is” Process Map Analysis
% %
 1 2 3 4 5 6 7  12 1314 1516 1718 19 20 Total
8 9 10 11 Total Steps
 Process Step
 Avg. Time (Mins)
 Value-Added
 Nonvalue-Added
– Failure Int. / Ext.
– Control/Inspection
– Delay
– Prep/Set-Up
– Move
 Total
Moments of Truth (MOT):
Non-Value Add (NVA):
Any time a customer draws a critical judgement, positive or negative, about the
service, based upon a service experience (or lack of it). Steps considered non-essential to produce and deliver the
Value-Added (VA): product or service
• Is the customer willing to pay for it? to meet the customer’s requirements. The customer is NOT
• Is it done right the first time? willing to pay for the step.
• Essential work that moves one step closer to the final product.
Value-Add Enabler: step that is required to do VA

94
47
ESCAP Analysis
All the process steps are evaluated based ESCAP criteria.
It is checked if following can be done to any of the steps :
 Eliminate
 Simplify
 Combine
 Automate
 Parallel

95
Analyse – Exercise
(30 Minutes)
You have to do any one of the following for your project:
 Cause and Effect Diagram and CI Matix

 Pareto analysis
 Process Mapping and VA and NVA Analysis
Trainer will inform you about the tools you have to exercise

96
48
ANALYSE
Purpose: To identify root causes of the problem and opportunities for improvement by
analysing the data and the process.
“As Is” Process Map & Analysis Root Cause Identification Root Cause Verification
Step VA NVA Cust.
1
MOT
CTQ * 2
3
6
7
Develop an “as is” process map,

and analyse it using: Perform cause & effect Verify root causes through
– Moments of truth (customer contact), analysis to identify
– Nature of work (value analysis), observation, statistical tools or
– Flow of work (cycle time) potential root causes design of experiments
D t Stratification
Data St tifi ti Quantify
Product A The Opportunity
Stratify / segment the data Product B
to find the vital few areas

to focus improvement
efforts on
Review and Finalise Problem Statement

97
Analyse – Tools
Data Door :
 Cause and Effect Diagram and CI Matrix
 Pareto analysis
Process Door
 Process Mapping and VA and NVA Analysis
 Lean Tools

98
49
DEFINE
CONTROL
MEASURE
IMPROVE ANALYSE

99
Improve
Objective :
 Determine new improved process
design
Steps :
 Generate solutions
 Select and test solutions

100
50
Improve
Introduction to FMEA

101
Idea Generation
Creativity approaches
 Process benchmarking
 Compare the performance of an
existing process against other
companies’ “best in class”
practices (same market or not)
 Determine how those companies
are organised to deliver these
performance levels
 Best practices
 Use
U company d t
data
 Brainstorming
 Brainstorming with post it notes,
channelled brainstorming, anti-
solution, …. etc

102
51
Brainstorming
Pre-requisites of Brainstorming
 Purpose of Brainstorming
 Participants (From the process / not from
the process)
 Facilitator
 Stationery
 Selection of tool of brainstorming
 Meeting room
 Facilities
 Communication to participants about
time, venue, topic in advance

103
Brainstorming
Rules of Brainstorming
 Equal opportunity to everyone to participate
 Capture
C t all
ll th
the ideas
id (D
(Document)
t)
 Leave your designation and ego along with your shoes outside
meeting room
 Non threatening environment to be created
 Ensure that there are no disturbances
 Focus on the topic (Create parking lot)
 Fantasize freely (Do not put breaks on your thoughts)
 Watch your time!
 Defer evaluation (Do not discuss ideas)
 Generate Quantity, do not worry about Quality

104
52
Brainstorming
Types of Brainstorming
 Round Robin
 Anti Solution
 6-3-5
 6 Hats

105
Brainstorming
6 Hats
 BLUE
 WHITE
 RED
 YELLOW
 BLACK
 GREEN
 RED

106
53
Continuous Improvement
What y
you think What it really
y is… What it should be… What it
It is…. could be
IMPROVE : IMPROVE :
What we want to put Generation 2 target.
in place in generation
1 that will give us the
money to finance
generation 2.

107
Benefits of doing a pilot
 Improve the solution that meets

customer requirements
 Refine implementation plan
 Lower risk of failure by identifying and
fixing possible problems ahead of time
 Confirming expected results and

relations between predictive
parameters and results (Xs on Y)
 Increase opportunities to receive
f db k and
feedback d buy-in
b i
 Implement the solution earlier and
faster for a particular customer
segment

108
54
IMPROVE
Purpose : To determine new improved process design through idea generation, selection,
process design, solution testing , and improvements implementation.
Solutions Refinement New Process Pilot

Potential failure
Action
Act Plan
Check Do
Evaluate potential problems in Develop a “should be” Pilot the solution on a small
new process design and improve process map showing scale to increase buy-in and
robustness of this design the impact of the solution improve overall implementation
Solution g
generation and selection
Criterion A B C
Brainstorming, anti
solution,
Solutions
Finalised
brainwriting, ... Cost /
Benefit
Perform cost / benefit analysis
of proposed solution
Generate solutions to address the root
causes and develop criteria to screen and
select solutions (including cost / benefit)
109
DEFINE
CONTROL
MEASURE
IMPROVE ANALYSE

110
55
Control
Objective :
 Ensure improvement over time
Steps :
 Create control tools
(documentation and dashboard)
 O
Organise
i process reviews
i b
by
Process Owner

111
Control = ensure gains over time

Performance
Before Successful No Control

Improvement Implementation In Place
Time
112
56
CONTROL = ensure gains over time
The CONTROL phase

naturally leads to Process
Management
as the purpose of that phase is
to deliver the tool set for
ongoing management of the
process performance by Process
Owner.

113
CONTROL = implement process management
 Process Management Chart

 process owner’s name
 pprocess documentation (process
(p
mapping, persons involved)
 customer performance criteria
 key measures to track, follow and
analyse (output, process, input,
financials)
 Dashboards
 graphical display of measurements
collected
 Process performance reviews
 frequency according to process
cycle time
 Response plan
 quick fixing of special causes
 opportunities for ongoing
improvement, i.e. new DMAIC
projects

114
57
Process Management Chart
Example
Process Name: New Account Opening Process Owner Name: ____________________ Date:_________________
Process Map Check The Process Act/Fix Problem

Output, Process or Input Target Data collection Immediate Process/System
Area 1 Area 2 Area 3 Measure method Control/Fix Improvement
•TAT on credit decision • < 2.5 min. •Analyse if •When process not
common cause in control, analyse
•% of approvals • > 85% or special cause variation and fix
variation. Make issues.
sure process is •When process in
•# of applications per day • > 3500 in control (within control but no more
control limits) capable, launch a
•# Store team meetings / •>3 and capable new improvement
month (within customer project.
specification
•# of training sessions / store •>3 limits)
staff
Output measure : TAT on credit decision Input measure : # of applications per day
3 Upper Control Limit 5000 Upper Control Limit
2.5 4500
2 Average 4000 Average
1.5 3500
Lower Control Limit Lower Control Limit
0 0
0 Black Belt Training 10 20 www.anexas.net 0 10 20 115
CONTROL
Purpose: To ensure improvement effectiveness over time by institutionalisation of the
improvement and implementation of ongoing monitoring and reviews.
Monitoring Plan Implementation Plan
QxA=E Who What Where When
x x
Process Capability
Develop a monitoring plan to Develop a full implementation Monitor the process according to plan. Chart
insures gains are held over the plan including project and data as evidence that process is in control
long term change management elements and meeting customer specifications
Documentation / Standardization D
Document the process with process maps &
procedures to assure the solution becomes M
part of daily work O
Address appropriate changes to broader •Process ownership to Process Owner (Process Management
systems and structures to institutionalise the chart to facilitate transfer)
improvement •Process Owner to held regular process reviews based on
dashboards.
•Process Owner to take action when process does not deliver
what is expected
•Process has entered Process Management = Define, Measure ,
Operate. 116
58
The DMAIC Storyboard : Six Sigma for Process Improvement
The Three Dimensions Of Define Measure
Purpose: To set set direction for improvement project by developing a team charter. To defining the Purpose: To measure and understand baseline performance for the current process by collecting
customers and their requirements (Critical To Quality = CTQs), mapping the high level business
Process Focus process to be improved.
reliable data (quantitative & qualitative).
Data Collection Graphical Display

Normal Probability Plot
High Level Map - SIPOC What Who Where Formula

• Use when:
:
– Process does not exist Suppliers Inputs Process Outputs Customers
– Process is broken • Use when incremental

– Process has reached entitlement improvement is needed to Use Survey or
Focus Groups? • Display data in graphic form to determine
– Designing new product / service satisfy Customer CTQs • Develop a data collection plan the type of distribution, the metrics to
– Operational definition understand variation and set goals for the
Voice of Customer (VOC) – Sampling improvement strategy.
• Complete high level “as-is” – Measurement System Analysis (MSA
process map,
map identifying
VOC Key Issues Requirements – Normal Distribution described by Mean
O ti i D
Optimise Design
i A Across Focus On
F O RRoott Causes
C That
Th t including Gage R&R) andd Standard
S d d ddeviation
i i
suppliers, inputs, 5-7 high level
Customer Critical To Quality Drive Customer Critical To activities, outputs & customers – Skewed Distribution described by Q1 (or
requirements (CTQs) And Sub Quality requirements (CTQ) Q3) and Inter Quartile Range
Project Charter – Long tailed distribution described by
process Performance Median and Span 5-95
Problem Statement:
Goal:
• Gather and display data Business opportunity: Customer oriented mindset
verifying customer Scope:
requirements (CTQs) Cost Benefit Projection:
Milestones: Customers' View
Calculate Process Sigma
Management # Defects “Outside” Spec Limit
Upper Spec Limit
Process Management System • Develop charter to include: Our View
Ongoing Management Of Process – Problem statement
– Goal for improvement Defects
– Business opportunity • Select the measure your customer uses to judge
• Use to manage a business process – Scope of project your performance (Key Output Measure Y)
using CTQ measurements – Milestones for completion • Plan to collect CONTINUOUS data to measure
– Roles your Key Output Measure Y
• Compute baseline sigma
Analyse Improve Control

Purpose: To identify root causes of the problem and opportunities for improvement by analysing the Purpose: To determine new improved process design through idea generation, selection, Purpose: To ensure improvement effectiveness over time by institutionalisation of the
data and the process. process design, solution testing , and improvements implementation. improvement and implementation of ongoing monitoring and reviews.
“As Is” Process Map & Analysis Root Cause Identification Root Cause Verification
Solutions Refinement Implementation Plan
Pilot
Step VA NVA Cust.
Process Capability
MOT 1 Potential failure
CTQ * 2 Action
3 Who What Where When

4
New Process QxA=E
5 Act Plan
6
7
Check Do
Monitoring Plan
• Develop an “as is” process map or sub- • Perform cause & effect • Verify root causes through • Develop a full implementation plan x x
process map, and analyze it using: analysis to identify statistical tools or design of • Evaluate potential problems including project and change
– Moments of truth (customer contact) • Develop a refined “should be”
potential root causes experiments in new process design and process map showing the • Pilot the solution on a management elements • Chart data as evidence that process is in
– Nature of work (value analysis), improve robustness of this small scale to increase control and meeting customer
– Flow of work (cycle time) impact of the solution
design buy-in and improve overall specifications (variation reduces and
implementation process sigma improves)
• Develop a monitoring plan to
insures gains are held over the
long term
Solution generation and selection D

Data Stratification / Segmentation Quantify Finalised
Cost / Benefit
Product A
The Opportunity Brainstorming, anti

Solutions
A B C
Analysis
Criterions
Product B
solution,
brainwriting, ...
O M
• Stratify / Segment the • Finalise cost / benefit Documentation / Standardisation
data to find the vital few analysis of proposed solution • Document the process with process • Process ownership to Process Owner (Process
areas to focus maps & procedures to assure the Management chart to facilitate transfer)
improvement efforts on. • Generate solutions to address the root causes solution becomes part of daily work • Process Owner to held regular process reviews
• Develop criteria to screen and select solutions based on dashboards.
including a Cost / Benefit approach to assess • Address appropriate changes to
Review and solutions. broader systems and structures to • Process Owner to take action when process
institutionalize the improvement does not deliver what is expected
Finalise Problem Statement • Process has entered Process Management =
Black Belt Training www.anexas.net Define, Measure , Operate.
06/2002 -OEG - DMAIC Storyboard version 3 117
Question Time
Six Sigma Overview
59

MODULE ‐ III
Basic Statistics
Basic Statistics
Definition
 sta•tis•tics n.
n [G.
[G Statistik,
Statistik political science NLat.
NLat
Statisticus, of state affairs < Lat. Status, state. – see
STATE.] 1. (sing. In number). The mathematics of
the collection, organization, and interpretation of
numerical data. 2. (pl. in number). A collection of
numerical data.
From: Webster II New College Dictionary, 1999. New York:

Houghton Mifflin Co.
Anexas Consultancy SE
1
Measures of Location
(Central Tendency)
Measures of Location
(Central Tendency of data)
Mean: Average of a set of values
Median: Midpoint in a string of data, where 50% of the

observations, or values, are below and 50%
are above
Mode: The most frequently occurring value
2
Measures of Spread (Variation)
Understanding Variation
3
Accuracy and Precision
Accuracy describes Precision describes

Centering Spread
Range
 Range is the difference between the largest and the

smallest observations
 Its purpose is to measure the dispersion between the
highest and lowest values of a data set
Range = Maximum Observation – Minimum Observation
4
Range Example
Determine the range for

f the following
f data set:
The number of invoices with one or more errors

was recorded on a daily basis:
2 3 2 1 0 0 4 6 2 1 3 4 4 4
Range Exercise
Range = Maximum Observation – Minimum Observation
Data Set 1
1 2 5 8 9
Data Set 2
1 2 5 8 9
Data Set 3
1 2 5 8 9
Calculate the mean, median and range for each data set
5
Deviation
 Deviation
D i ti is
i the
th distance
di t between
b t a data
d t point
i t and
d the
th mean
 Its purpose is to measure and describe the variation in a set
of data
Deviation Example
Deviation = Xi – X = Distance from mean
6
Standard Deviation
Measure off the average distribution about the mean
Standard Deviation () Formula for the

Population
N
 (X i –  )
2
 = i=1
N
N
 = Sum all values from the first to last
i=1
Standard Deviation
Measure off the average distribution about the mean
Standard Deviation (s) Formula

for samples
N
2
 (X i – X )
s = i=1
N-1
N
 = Sum all values from the first to last
i=1
7
Standard Deviation Formula
Determine the standard deviation for the

following data set (Population): 1 2 3
N
 (X –  )2

i
= i=1
N
N
 (1-2)2 + (2-2)2 + (3-2)2
 = i=1
3
= .667
Standard Deviation Example
X (X- ) (X- )2
1 (1 – 2) 1)2
((-1) 1
2 (2 – 2) (0)2 0
3 (3 – 2) (1)2 1
 =
 6 2 2  3
N 3
 2  = .667
8
Calculate Standard Deviation
Exercise
Calculate the standard deviations for the data set for

samples
l taking
t ki an example
l off your choice
h i
x (x- X (x- X
bar) bar) 2
1
2
5
8
9
X
bar
sum
Distributions
9
Data Frequency Plot
A data frequency plot is a visual display of a set of
measurements showing:
300
Sample
• General location
F re que ncy
200
• Spread
• General shape of 100
data distribution
0
60 70 80 90 100 110 120

D ays
600 observations of aging in account receivables
Approaching a Continuous
Distribution
300
F re que ncy
200
100
60 70 80 90 100 110 120

D ays
5,000 observations of aging in account receivables
10
Approaching a Continuous
Distribution
Imagine the grouping interval in the histogram to be made

smaller and smaller until the distribution becomes
continuous…
300
F re que ncy
200
100
60 70 80 90 100 110 120

D ays
5,000 observations of aging in account receivables

Probability Distribution
Area under curve can be used to estimate the occurrence

probability
p y of an “event”.
.25
.2
.15
.1 60 70 80 90 100 110 120

D ays
The area under the curve is 100%
11
Normal Distribution
Definition: the areas

on both sides of the 1st Distribution
mean are symmetrical

about the mean 2nd Distribution
3rd Distribution
Mean
The means are the same but the standard deviations differ
The Standard Normal Curve
The standard normal curve is a special case of the normal

distribution where the mean = 0 and the standard deviation = 1
68.26%
95.44%
99 73%
99.73%
-4 -3 -2 -1 0 1 2 3 4
95% of the population is within approximately +/- 2 standard

deviations of the mean
12
WHAT IS VARIATION ?
 No two things in nature are alike.
 This is also true for all processes.
 This dissimilarity between two process outputs or CTQs for
the same characteristic is called variation.
 The variation may be or can be made to be so
small so as to make the product SEEM similar.
 When we say that 2 things are similar we actually mean that
it is not possible to measure the variation present within the
accuracy of the existing measuring equipment.
 Variation between 2 products are compared for SIMILAR
features or characteristics.
6 50
6.50 6 55
6.55 7 00
7.00
6.55 a.m. +/- 5 minutes.

This man wants to reach his work p place by
y 6.55 a.m.. But he can not do
so, exactly at 6.55 a.m. daily. Sometimes he reaches earlier (but almost
never before 6.50 a.m.). Sometimes he reaches later (but almost never
after 7.00 a.m.).
WHY ?
13
THIS IS BECAUSE....
OF CERTAIN FACTORS WHICH
 Affect the time he takes
 He cannot control
 Vary randomly
- e.g. The traffic you encounter under normal course of travel
THE VARIATION THAT OCCURS DUE TO THESE KIND OF

FACTORS IS CALLED INHERENT VARIATION OR
COMMON CAUSE VARIATION OR WHITE NOISE.
UNDER NORMAL SCHEME OF

OPERATION
Maximum deviation
Inherent
Aimed value Variability
((white noise))
Minimum deviation
d
14
TODAY HE IS EARLY ! PROBABLY BECAUSE :
WHY ? • His watch was running fast.
• He got a lift.
• His Bus driver took a shortcut.
• He stayed over in the colony.
• He had some important work
to be finished before 7.30.
These causes are characteristic of

6.30
a specific circumstance and do
not occur in the normal scheme
of actions.
actions
Variation due to these types of

reasons is called assignable or
special cause variation or black
noise
TODAY HE IS LATE PROBABLY BECAUSE :

• He overslept.
WHY ? • He missed his Bus.
• The Bus driver was new
• He took some other route
• He stayed
sta ed over
o er at some other
place.
These causes are characteristic

7.20 of a specific circumstance and
do not occur in the normal
scheme of actions.
Variation due to these types of

reasons is called assignable or
special cause variation or
black noise
15
GRAPHICAL DISPLAY OF
VARIABILITIES
CASE I T
O
Assignable (Black noise) Assignable T
Variability Variability A
L
Inherent
V
Variability Aimed Value A
R
I
A
B
Assignable Assignable I
Variability L
Variability I
T
CASE II CASE III Y
• OUR MAN ALWAYS WANTS TO REACH OFFICE

ON TIME
• HE COLLECTS DATA ON TRAVEL TIME FROM HIS

HOUSE TO OFFICE FOR LAST FEW MONTHS
• HE FINDS THAT :
– THE AVERAGE TIME (X-bar)

( ) IS 25 MINUTES.
– THE STANDARD DEVIATION IS 5 MINUTES.
16
THE NORMAL CURVE WOULD BE AS
FOLLOWS
Normal Distribution :
• Average = 25
• Standard Deviation = 5
68%
95%
99.7%
Values(time) 10 15 20 25 30 35 40
HOW MUCH TIME BEFORE SHOULD

HE LEAVE HIS HOUSE ?
50%
16%
%
84%
98%
99.9%
99.99966%
•50% certain, leave 25 minutes before work

•84% certain, leave 30 minutes before work
•99.99% certain, leave 40 minutes before work
• 99.99966% certain leave 47.5 minutes before work starts…..
17
Principal Consultant - Profile
Amitabh Saxena
AMITABH SAXENA
CEO, Anexas Europe
Amitabh Saxena, CEO, Anexas Consultancy, is a Lean and Six Sigma Master Black Belt and PMP with 23
years of process excellence and quality related experience in services and manufacturing domains. He is
trained in Six Sigma at AXA University, Paris and has implemented Six Sigma and Lean in more than 25
organizations in UK, Europe, Middle East and India. By education, he is a Chemical Engineer and MBA
(Finance) from Jamnalal Bajaj Institute of Management Studies, Mumbai and has served as Deutsche Bank
and RR Donnelley as Vice President- Process Excellence.
Amitabh’s last corporate assignments were as Head – Process Excellence in Riyad Bank and Vice President –
Transformation with Deutsche Bank. Amitabh has experience in various domains like Logistics, ITES,
banking, manufacturing, petrochemical industries, software organizations, financial and insurance
companies. He conducts regular open house trainings in Copenhagen, Denmark and London, UK. He has
worked at senior Six Sigma positions in OfficeTiger-RR Donnelley (Vice President- Six Sigma), AXA, KPMG
and was also associated with Quality Mission Project of Indian Statistical Institute; Indo Rama (Thailand) Ltd
and Bharat Petroleum.
Presently Amitabh is CEO and heads the Six Sigma Advisory Services of Anexas Denmark, a management
consulting organization mainly focused on process excellence. He is also the Principal Consultant and
Trainer on Lean Six Sigma for services in CII (Confederation of Indian Industry).
As Master Black Belt, Amitabh has guided more than 300 improvement projects, trained more than 1000
Black Belts and 1500 Green Belts. He has also trained more than 1000 middle and senior management
personnel in Lean, Balanced Score Card, ISO 9000, CMM and Statistical Process Control. He has spoken at
global and national six sigma summits for IQPC, Marcus Evans, Indian Statistical Institute, NASSCOM, NIQR,
Benchmark and chaired leading conferences on Process Excellence in India, UK, US, Middle East and several
European countries. He is also jury member of North America Shared Services Process Excellence Award and
Symbiosis Lean Six Sigma process excellence awards.
____________________________________________________________________________________________
Contact details of Amitabh Saxena : Mobile (India) : +91 99800 20968, Mobile (Denmark) : +45 60907372 ,
Mobile (Middle East) : +96 65427 31565, Emails : amitabh@anexas.net / amitabh_th@yahoo.com / amitabhsaxena@gmail.com
1
Principal Consultant - Profile
Pradeep
Project Team Staffing: AssignedSharma
Co-Consultant and Co-Trainer
Pradeep Sharma
VP Consulting (Anexas Middle East)
Pradeep Sharma is a Six Sigma Master Black Belt with 12+ years of process excellence related experience in
Banking, financial institutions, healthcare, service, & manufacturing domains. He is trained in Six Sigma at
Anexas and has implemented Six Sigma and Lean in various leading organization. By education, he is a
Masters in Total Quality Management.
Presently Pradeep is with Anexas as Six Sigma Master Black Belt, consulting leading organizations in Middle
East & India in six sigma and process excellence implementation.
His last corporate assignment was as Head of Continuous Improvement Unit at Riyad Bank. In Riyad Bank
Pradeep was responsible for rolling out Lean Six Sigma Improvement Projects and Implementing Balanced
Score Card in the organization. While being in Riyad Bank, Pradeep complete numerous process
improvement projects. He has also consulted and trained for leading hospitals in Saudi Arabia like King
Fahad Medical City.
Before that Pradeep has worked as Manager – Transformation with Deutsche Bank Group in investment
operations. He has also worked at Six Sigma positions in Tata Sky, Client Logic – ITC Infotech Ltd.,
Hyperquality and IGate.
As Master Black Belt, Pradeep has guided more than 100 improvement projects, trained more than 500
Black Belts and 1000 Green Belts.
Pradeep has also expertise in Balanced Score Card, BPM, Process re-engineering & Simulation. He has lead
BPM initiative in various organizations. His projects on process reengineering and simulations have been
presented at national and international levels.
Contact details of Pradeep Sharma

Email: pradeep@anexas.net, Phone: + 966-566853987(Riyadh), +91-9810881190 (India)
2
Organization Profile
A group company of
Anexas Europe
Anexas Consultancy Se. Pvt. Ltd. was incorporated under Indian Companies Act, 1956 in the year 2006. It is
Group Company of Anexas Denmark, which is incorporated in Copenhagen, Denmark. Anexas is
incorporated in UAE as Anexas FZE. All companies are financially strong and all the consultants at different
locations are capable of supporting the client services. The corporate structure is provided in the separate
Appendix 2 as mentioned in your RFP. Anexas helps companies to gain a competitive advantage in
international markets by providing process excellence consulting and training with specialized services
such as Six Sigma, Lean, Balanced Score Card, Project Management, TRIZ, Business Process Management,
simulation for process excellence, System Architect, etc.
Anexas globally has been providing six sigma services to industry majors such as Technip France, DCNS
France, ADCO, Akshaya Patra, NAQEL, IBM Geodis, Bank Muscat, Riyad Bank, Bharti-AXA General Insurance,
ING Vysya Bank, Siemens, Aptuit Informatics, Allsec Technologies, Cambridge Solutions (now - Xchanging),
King Fahad Medical City, Kaypee Electronics, Jabil, Cross Country InfoTech, King Khaled Hospital, Symbiosis
Institute, G4S, Wissen Infotech, etc. representing industry sectors from Banking, ITES, BPO, Premedia, IT,
Healthcare, Hospitals, shipping, automobile, electronics and construction. Anexas has certified more than
10,000 Black Belts, 15,000 Green Belts and 40,000 Yellow Belts worldwide.
Our Six Sigma certifications are recognized by all the organizations worldwide. Some of the prestigious
organizations who have recognized our certifications in Abu Dhabi are ADCO and Technip France, UAE.
Our full time internationally recognized professionals have many years of experience in a wide variety of
industries and disciplines including six sigma, business process management, simulation, quality auditing,
quality assurance/quality control and regulatory compliance and product stewardship. Our process
excellence, assessment and process advisory and services staff holds specialized degrees in various
disciplines and have led more than 400 six sigma process improvement projects across the globe. Some of
our personnel have been examiners for prestigious quality awards like the North America shared services
award, Symbiosis Lean Six Sigma Process Excellence awards, Confederation of Indian Industry (based on
EFQM model) Quality Award. Our team members have been involved with numerous six sigma projects
resulting in savings of millions of dollars. They have participated as speakers and chairpersons in
prestigious conferences across the globe on process excellence like IQPC, NASSCOM, WCBF, Indian
Statistical Institute, Marcus Evans, Hospital Management Asia, etc.
Anexas worldwide professionals are based at Riyadh and Abu Dhabi in the Middle East, London and
Copenhagen in Europe and in India at Bangalore, Mumbai, Chennai, Delhi, Pune and Nagpur.
Anexas is business oriented and pragmatic in its approach towards implementation of ‘Lean and Six Sigma’
as a business initiative. We value our relationship with our clients and are committed to helping them to
achieve their business objectives through six sigma performance improvement methodologies.
Anexas has received many awards for the excellent services it has provided to the customers. One of the
recent award was ‘Best Lean and Six Sigma training Institute in India’ received at the hands of celebrated
author and Time magazine’s top 100 influencers of the world, Chetan Bhagat and Brands Academy.
3
DEFINE MEASURE ANALYZE IMPROVE CONTROL
DATA DOOR PROCESS DOOR FMEA Solution Generation
SIPOC Data Collection Plan (Lean) 5 'S'
Data Types 1. Benchmarking
Severity
VOC ‐ CTQ (Attribute/Continuous) Cause & Effect Process Mapping Rating (S) 2. IT/ Automation Mistake Proofing
Measures of Central tendency 3. Idea Generation (Poka Yoke)
‐ Round Robin , ‐ Anti
Control Impact Value Added / Non Occurence Solution, ‐ 6‐3‐5,
Project Charter (Mean / Median/Mode) Matrix Value Added (MUDA) Rating (O) ‐ 6 Hats
Measures of Variation (Range
and Standard deviation) Detection
Gage R & R (MSA) 7 Wastes Rating (D) Solution Selection Control Charts
Risk Priority
Stakeholder Number (RPN Continuous Data I‐
Analysis Sampling Techniques DPMO ESCAP, = SOD) Pugh Matrix MR
Sigma level 6 Hats X Bar‐ R
(Minitab)
Graphical Summary (Cont) PARETO ANALYSIS FMEA Attribute Data
Pareto (Attribute) (2‐3 Root Causes) For Defectives
PILOT ‐ p
Validate Root Causes (Graphically) ‐ np
Att‐Cont = Box Plot Implementation Plan For Defects
Cont ‐ Cont = Scatter Plot ‐ c
(Regression) ‐ u
Att‐Att = Pareto

Welcome To Lean and Six Sigma Training: CEO Anexas Europe

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Welcome to Lean and Six Sigma Training

 1 book of DMAIC Overview and Define phase (Day 1 and 2)

Wishing you continued success in your journey towards process excellence.

Mobile (Europe) : +45 2823007

Anexas Consultancy Services

Module I : Welcome to Training

1. Introduction to Six Sigma Training 1

Module II : DMAIC Overview

2. Introduction to Six Sigma 1

5. Measure Phase overview 28

6. Analyse Phase Overview 39

7. Improve Phase Overview 50

8. Control Phase Overview 55

Module III : Basic Statistics

Anexas Consultancy Services

Anexas Consultancy Services, India

Anexas Consultancy Services

• Anexas is a global network of attached

About operate in various countries and have

• Our mission is to provide committed,

• Trained more than 10000 professionals

• Black Belts, Master Black Belts certified

 Group of more than 50 process improvement

 Black Belts certified by Anexas are well placed in

 We conduct training programs worldwide in more than

 For more information visit website www.anexas.net

Global Clients - Worldwide Programs

Anexas Consultancy Services

Anexas Consultancy Services

Anexas has received Worldwide Awards in UK, India, Middle East,

Now we introduce ourselves…

Anexas Consultancy Services

Anexas Consultancy Services

LARSEN & TOUBRO

JOHNSON & JOHNSON NAVISTAR WIPRO

• Conceptualized at Motorola during 1979

“The real problem at Motorola is that our quality stinks”

• Chief Executive Bob Galvin threw a challenge in 1981 to achieve

• Bill Smith, an engineer of Motorola presented a paper

• Mikhel Harry, subsequently developed a structured Six

Anexas Consultancy Services

• Mfg costs reduced by $ 1.4

• Stock rose 5.5 x

• Pager order to shipment

Anexas Consultancy Services

“The best Six Sigma

Understanding the Differences

SIGMA AREA SPELLING MONEY TIME DISTANCE

4 Floor space of 1 misspelled $63,000 indebted- 2 1/2 days per 45 minutes of

5 Size of the 1 misspelled word $570 indebtedness 30 minutes A trip to the

6 Size of a 1 misspelled word $2 indebtedness 6 seconds 4 steps in any

Anexas Consultancy Services

Class Excercise Class Excercise

Anexas Consultancy Services

Anexas Consultancy Services

Six Sigma Overview

Six Sigma Overview

Lean and Six Sigma Overview -

 Understand why an organization launches Six

 Understand the flow of the DMAIC methodology for

 Have practised some of the relevant tools in DMAIC

 Know when and in what context to use the DMAIC

Black Belt Training www.anexas.net