Brief definition of Six Sigma and how it can be used to solve problems within the workplace.

1. PROBLEM SOLVING & SIX SIGMA
Francy Chesser
MGT 650
Summer 2014

2. GBS LSS YELLOW BELT TRANSACTIONAL
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What is Six Sigma?
 Six Sigma+Lean is the consistent further development and systematic interlinking of proven
tools and methods
 Six Sigma is strongly customer oriented methodology, supporting companies to be customer centric
Raising quality and
customer satisfaction
Project benefit for
the company in $
 Six Sigma+Lean means "six standard deviations". The Six
Sigma+Lean vision means that the standard deviation of a
normal distribution fits +/- six times between the specification
limits defined by the customer (upper specification limit = USL
and lower specification limit = LSL). The located value
corresponds to a quality level of 99.9999998 %. Practical
experience shows that processes fluctuate over time by at least
+/-1.5 Sigma, this means that in the end a quality level of
99.9997 % is achieved and this corresponds to an error rate of
3.4 defects per million opportunities
Measurement Dimension
Customer orientation

3. GBS LSS YELLOW BELT TRANSACTIONAL
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Methodology Dimension
 Most of the companies use Six Sigma to improve existing processes with DMAIC tool set
 After successful use of DMAIC in improvement of Six Sigma, a tool
set for development of new processes was designed called DFSS
 Last Dimension of Six Sigma maintains achieved results by DMAIC
or new set up process/product by DMADV
Improve processes
DMAIC
Develop processes
DFSS / DMADV
Process management takes
responsibility for the processes

4. Tools Results
Define
Phase
Measure
Analyze
Improve
Control
• Project Charter
• High level process
map
• Collection of customer
requirements
Cause
List of root
causes
• Definition of the size of the problem (SOW)
• Definition of the process to be improved
• Definition of the customer & his
requirements
• Project potential in numbers (€)
• Fact & data based definition of the
current situation
• Search for root causes
• Data driven analysis and verification
• Root cause related creation of
solutions
• Systematic value based selection
• Stringent improvement planning
• Documentation of final solutions
• Control of results after 12 months
• Detailed reaction plan measures
Start
Stop
List of possible
solutions
Implementation
plan
Technical call
process
4321
240 -
190 -
140 -
Process analysis Data analysisFocus
Problem
Scope
Goal
Team
• Output measurement
• Data collection
• Process capability
• Process Analysis
• Data Analysis
• Root Cause Analysis
• Solution generation
• Solution selection
• Pilot & Implementation
• Process Documentation
• Monitoring Charts
• Reaction Planning
• Process Perform.
Review
t
Call duration
t
Call duration (# Calls)
PWT time
t
PWT time
t
D M A I C
GBS LSS YELLOW BELT TRANSACTIONAL

5. GBS LSS YELLOW BELT TRANSACTIONAL
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The Main Questions
Does it work ?
Why we have
the problem ?
How big the
problem is ?
What is the
problem ?
How to solve the
problem ?

6. GBS LSS YELLOW BELT TRANSACTIONAL
 Avoid or Redefine projects that fall into any of
these categories:
 Fuzzy objectives
 No tie to financials
 No team/resource to drive the project
 Too broad in scope
 No connection to strategic or annual plans
 Solution already defined and agreed (go for just do it project)
 Too many objectives
 Without measurable $ benefits
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7. GBS LSS YELLOW BELT TRANSACTIONAL
 Look for …
 What is on the current & coming Agenda of the department
 Problems needing solutions to meet annual operating plan
 Major problems with financial impact (customer or environmental crises)
 Problems re-appearing on the agenda several times (“fire fighting is not enough”)
 High volume products (small improvements can have huge impact)
 Products and processes with major backlogs
 Overtime, warranty, and other sources of waste
 Rework and scrapping activities
 Large budget items
 Project has to have $ BENEFIT !!! ( minimal requirement is $5k / year)
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D M A I C

8. WHAT IS PROCESS ?
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D M A I C
GBS LSS Yellow BeltTransactional
“ The application of knowledge, skills, tools, techniques and systems to
define, visualize, measure, repeat, control and improve process with
goal to meet customer requirements profitably “
INPUT PROCES OUTPUT

9. WHAT IS PROCESS ?
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D M A I C
GBS LSS Yellow Belt Transactional

10. VOICE OF CUSTOMER/BUSINESS - TOOL I
Voice of the customer (VOC) Key issue Critical to Quality (CTQ)
Voice of the business (VOB) Key issue Critical to Quality (CTB)
D M A I C
GBS LSS Yellow Belt Transactional
I do not want wait for taxi for ages
I want to be taken to the correct location
I want to pay correct bill
TIME
LOCATION
QUALITY
Each customer MUST BE
taken to the right location
Each Taxi MUST pic up
customer in 10 min
Each bill MUST BE correct
We want decrease the cost… Cost / Expense Reduce cost for…

11. Output
measurement
Output
measurement
Define output
measurements
List of
CTQ/CTB
Define how strong the measurements evaluate CTQ/CTB. Use ratings: 0 none, 1 weak, 3 medium, 9 strong
Output Measurement Matrix – Tool 2
How can we measure customer requirements?
D M A I CGBS LSS Yellow Belt Transactional
# of cases
no pick up
in 10
# of
cases
customer
taken on
wrong
location
# of
incorrect
bill
9
9
9
1 0
0 0
Each Taxi MUST pic up
customer in 10 min
Each customer MUST BE
taken to the right location
Each bill MUST BE correct 0 0

12. DATA TYPES
D M A I CGBS LSS Yellow Belt Transactional
DATA TYPES
Discrete (Count) Data Continuous Data
Can be categorized in a
classification and is based on
counts.
Can be measured on a continuum,
it has decimal subdivisions that
are meaningful
Number of defects
Number of defective units
Number of customer returns
Yes / NO
 Black / White
Time,
Pressure,
Conveyor Speed,
Material feed rate
Money

13. DATA PARAMETERS
D M A I CGBS LSS Yellow Belt Transactional
Basic statistical categories
Location parameters
Distribution
parameters
Defines where most of our data
points are located
Defines how big are the differences
between data points
Mean
Median
Mode
Quartile
Min/max
Variance
Standard deviation
Range

14. SWIMLANE (AS IS – TO BE)
HOW LOOKS OUR PROCESS?
Process
start/end Process step
application
Use service
Request
service
Technical
feasibility
Enter order
Verify order
Enter order
Cancell order
application
Call Center
operator
Sales agent
IT specialist
Function
Customer
Technical expert Instal service
Communicate
cancellation
Communicate
cancellation
Comment
yes
no
Recommended symbols:
Process
start/end
Process step application
Function Comment
D M A I CGBS LSS Yellow Belt Transactional

15. DATA COLLECTION PLAN
WHAT MUST BE DONE TO HAVE GOOD DATA AND IN TIME?
Belt:<name>Project:
<name>
What to measure? How to measure? Who does it?
When
?
Measurem
ent name
Operational
definition
Sample
Size
Input/output
/ process
Collection
description
Data tags needed
to stratify the
data
Responsible
for collection
Date
D M A I CGBS LSS Yellow Belt Transactional

16. D M A I C
GBS LSS Yellow Belt Transactional
Data Stratification
WHY
Break down data to recognize new structures with which we can limit and explain a
problem, e.g. when a problem occurs at different times, at different places, or under
different conditions.
Stratification options
WHO Sales agent, operator,
WHEN
Quarter of the year, month, time of the
day,
WHERE Country, region, town
WHAT
Call reason, failure reason, purchase
reason
HOW Contact type, sales channel, treatment
type

17. CAUSE & EFFECT DIAGRAM
WHAT IS CAUSING OUR PROBLEMS?Measurement descriptionMan
Methods
Measurement
Machine
Material
Mather nature
Problem
statement
D M A I C