Six Sigma Yellow Belt

 Evolution of Six Sigma

The concept of Six Sigma evolved progressively over a period of two decades in step with the concerns
of the organizations worldwide for quality, value-creation and customer delight. The phases of this
evolution can be identified as being concurrent with emphasis on some of the critical business
parameters. The timelines can be approximately summarized as follows:

 What is Six Sigma?

Six Sigma is a data driven, customer focused, and result oriented methodology which uses statistical
tools and techniques to systematically eliminate the defects and inefficiencies to improve processes.

Six Sigma methodology has the following characteristics:

1. Customer centric
2. Process focused
3. Data driven/ factual
4. Breakthrough performance gains
5. Structured improvement deployment
6. Validation through key business results

 Goals of Six Sigma

1. Reduction in variation
2. Elimination of defects
3. Improvement in yield
4. Enhancement in customer satisfaction
5. Strengthening of the bottom line

Example: GE’s Medical System division (GEMS) used Six Sigma design techniques to create a
breakthrough in medical scanning technology. Patients can now get a full body scan in half a minute,
versus three minutes or more with previous technology. Hospitals can increase their usage of the
equipment and achieve a lower cost per scan, as well.
  Six Sigma Approach

Six Sigma approach is to find out the root causes of the problem, symbolically represented by Y = F(X).

Here, Y represents the problem occurring due to cause (s) X.

 Why do organizations adopt Six Sigma?

Organizations embrace the Six Sigma way as this methodology systematically and measurably enhances
the value of the organizations by making them competitive, quality-conscious, customer-centric, and
forward-looking. Some of the benefits that the organizations derive from the Six Sigma initiatives are:

1. Waste prevention
2. Defect reduction
3. Cycle time reduction
4. Cost savings
5. Market share improvement

 Six Sigma –Mathematical Interpretation

Sigma, represented by the Greek alphabet ‘σ’, stands for standard deviation from the ‘mean’. ‘Six Sigma’
represents six standard deviations from the mean*.

Mean: It is the simple average of data.

Standard deviation: It is a measure of variability of data.

1. USL - Upper specification limit for a performance standard. Any deviation above this is a defect.
2. LSL – Lower specification limit for a performance standard. Any deviation below this is a defect.
3. Target – Ideally, this will be the middle point between USL and LSL.

Process standard deviation (σ) should be so minimal that the process performance should be able to
scale up to 12σ (6 Sigma each on either side of the origin on the X-axis) within the customer
specification limits*.
  Roles in Six Sigma Organization

Executive Leadership - Executive Leadership includes project sponsors and process owners. They create
the Six Sigma vision for an organization. They are responsible for ensuring that everyone in the
organization understands the vision and all work with unity of purpose to realize it.

Champions - Champions are selected by Executive Leadership or Senior Champions. They organize and
direct the initiation, deployment, and implementation of Six Sigma throughout the organization. They
ensure that Six Sigma is properly implemented in all the business activities of the organization. Champions
can be either Deployment Champions or Project Champions.
Master Black Belts - Master Black Belts are in-house experts selected by Champions. They manage project
selection and human resource training with the help of Champions. They train Black Belts and Green Belts
in Six Sigma implementation.

Black Belts - Black Belts are those who apply the tools and techniques and knowledge of Six Sigma
principles to a given project of an organization. They are responsible for accomplishing the tasks entrusted
to them by Champions and Executive leadership. They dedicate all of their work hours on Six Sigma
implementation.

Green Belts - The Green Belts are those employees of an organization who implement Six Sigma while
discharging their other assigned duties. Green Belts have fewer Six Sigma responsibilities compared to
Black Belts and Master Black Belts. They dedicate only a part of their work hours on Six Sigma
implementation.

Project Team - They are the employees who work on the Six Sigma project. It includes the Project
Manager as well. Project team members need not be a Green Belt or Black Belt.

 Key Stakeholders
1. Customers – they are very important stakeholder whose requirements have to be
considered.
2. Employees – they are the people involved in the six-sigma initiative in the organization.
3. Suppliers - they are people who provide inputs to the process.
4. End users – they are people who actually use the product or service. End users can also
be customers.
 DMAIC Methodology

DMAIC is a data-driven Six Sigma methodology for improving existing products and processes. The
DMAIC process should be used when an existing product or process requires improvement to meet or
exceed the customer’s requirements. This initiative should be consistent with the business goals of the
organization. Companies using DMAIC Methodology: GE, Motorola, etc.

GE – Reduces invoice defects and disputes by 98%, speeds up payment, and creates better productivity.

D – DEFINE the problem

M – MEASURE the outcome (Y) to determine the current process performance (baseline) and
validate the measurement system

A – ANALYZE, identify X’s (root causes of the defects, variation sources)

I – IMPROVE the process by eliminating the defects

C – Control X’s for sustained performance

Define Phase

The Define Phase is used to identify the areas of improvement and define goals for the improvement
activity and ensures that resources are in place for the improvement project.

The Define Phase will focus on a customer requirement and identify project CTQ’s (Critical to quality). A
CTQ is a product or service characteristic that satisfies a customer requirement or process requirement

Measure Phase

The Measure Phase evaluates the process to determine the current process performance, that is, the
baseline. It uses exploratory and descriptive data analysis to help in understanding the data. The
Measure phase allows you to understand the present condition of the process before you attempt to
identify improvements. The inputs to the measure phase are the outputs of the Define phase
Analyze Phase

The Analyze phase is used to identify few vital causes from a list of potential causes obtained from the
Measure phase, actually affecting project outcome using six sigma methodologies. The data collected in
the Measure phase are examined to determine a prioritized list of the sources of variation.

Improve Phase

The improve phase of Six Sigma is used to improve the system to do things better, cheaper or more
rapidly by finding optimum solution for Y, implement the new approach and validate using statistical
methods. The main objective of the improve phase is to improve the process by eliminating defects.
Control Phase

The control phase of Six Sigma is used to develop and implement process control plan to ensure
sustenance of the improved process. The major activities in the control phase are to validate
measurement system, verify process improvement and develop control mechanism. So far we have
identified the best settings for each of the vital ‘X’. The key now is to ensure that the X’s don’t fluctuate
away from the targeted setting. Process control is an important tool to ensure that the Six Sigma project
delivers lasting benefits.

Quality Tools

Types of Data

Before we get into details of the 7 basic tools, let us familiarize with the concept of data types. Data can
be broadly categorized into two types: Continuous data and Attribute (discrete) data.
 1. Continuous data is measurable by some physical instrument and the value is continuous (i.e. it
can be any number including decimals, need not be only integers). Example: weight, height,
length, density etc.
2. Attribute data is countable and they can not be measured by any physical instrument. They are
also classified as good or bad, yes or No etc. Example: Number of defects, defectives.

Check sheets

 Check sheets are very important tool for data collection. Inputs gathered from check sheets can
be used for creation of Pareto diagrams, Fishbone diagrams etc.
 The purpose of check sheets is to ease the compilation of the data in such a manner that they
may be used / analyzed comfortably.
 It is a simple and convenient recording technique for collecting and determining the occurrence
of events.
 It is constructed with each observation to give a clearer picture of the facts.

Creating Check sheets – steps involved

 Determine the objective by asking questions such as "What is the problem?", "Why should data
be collected?", "Who will use the information being collected?", "Who will collect the data?“
 Decide the features/ characteristics and items are to be checked.
 Create a tabular form for collecting data. Traditionally the features/ characteristics, items, type
of defects etc. are listed on the left side of the check sheet.
 Collect the frequency of data for the items being measured. Record each occurrence directly on
the right side of the Check Sheet as it happens.
 Tally the data by totaling the number of occurrences for each category being measured

Histogram

It is a visual representation of variable data.

It organizes data to describe process performance.

 It displays centering of the data and pattern of variation.

It demonstrate the underlying distribution of the data. Histogram can be used to check whether the
data is Normally distributed or not.

It provides valuable information for predicting future performance.

It helps to identify whether the process is capable of meeting requirements.

Creating Histogram – steps involved

Collect the variable data in a table.

Ensure that all the measurements are in the same unit

Arrange the data in ascending order such that the minimum and maximum value can be identified

Choose some suitable interval length of uniform size

Use a check sheet to count the number of observations corresponding to each interval

The number of observations for a particular interval is said to be the height of that interval and
displayed as vertical bars.

A sample diagram is given here where the raw data are displayed in the form of a histogram.

Also we can see the shape of the underlying distribution

Study of Histogram

Important aspects to be considered when studying Histogram:

Location of mean of the process

 Spread (variation) of the process

Shape (pattern) of the process

Flow chart/ Process Map

 It is a graphical representation of processes in an organization displaying the sequence of tasks

performed and their relationships.
 It is a prerequisite to obtain an in depth understanding of a process, before application of
quality management tools such as FMEA, SPC etc.
 Process maps are progressively elaborated: i.e. a high level process map is defined early on in
the six sigma project which shows major processes and this will be made more explicit and
detailed as project team develops a better and more complete understanding of all the
processes.
 Standard symbols are used in creation of process maps.

Benefits of Process Map

 Helps clarify several process steps and process flow which may not be understood clearly
before.
 Shows problem areas, unexpected complexity, redundancy, idle time, unnecessary loops and
where simplification may be incorporated.
 Visually shows the various alternatives possible and helps in selecting an appropriate solution.
 Helps all members of the team gain appreciation for the work being done by others in the team.
 Compares and contrasts actual versus the ideal flow of a process.
 Can be used as a training tool.

Symbols used in Process Map

Rectangle: represents a process step or action taken. Each process step has one or more inputs, does
some activity, and creates one or more outputs.

Diamond: represents a decision step i.e. different alternatives possible depending on the input to this
step.

Oval: represents the start of stop of a process map, also used to depict if the process map continues in
another page.

Arrow: represents the direction of flow in a process map.

Creating Process Map – steps involved

 Put together a cross functional team who have knowledge of the process and appropriate
subject matter expertise to create the process maps.
 Define the process and its boundaries, including the start and end points.
 Describe the stages of the process in a sequential manner.
 Assess whether the stages are in correct sequence.
 Draw the process map using the conventional symbols
 Get it reviewed by the people involved in the process to check its accuracy.

“As-is” & “To-be” Process Map

 Try to find out existing process maps which may already be in existence in the company.
 Map all the “As-is” high level processes i.e. processes as they exist now. This will create an
awareness within the team about the processes in existence currently, and also let all team-
members understand the contribution from others. This is the “As-is” Process map.
 Ask the cross-functional team to study the process and identify opportunities for improvement.
 Based on the inputs from cross functional team, map all the “To-be” processes. This is the “To
be” Process map.

Cross Functional Process Map

 When more than one functions or departments of an organization are involved in a process
(which is very likely in general) then we need to create cross functional process map instead of
simple flow chart.
 It is the simple process map along with the various functions displayed on the left side of the
diagram.
 Sequence of tasks are mapped in such a way that they correspond to the respective functions.
 It may be possible that some task(s) is performed by two functions. Hence this activity to be
displayed in such a manner that it falls in both the functional zone. Lets take an example:
Cause and Effect Diagram

It is a graphic representation of possible causes for any particular problem under study.

This tool was developed by Kaoru Ishikawa in 1960’s to determine and break down the main causes of
a given problem.

This tool is employed where there is only one problem and the possible causes are hierarchical in
nature.

This diagram is also known as Fish bone diagram (because of its fish bone like structure) or Ishikawa
diagram.

It gives the relationship between quality characteristics and its factors.

It focuses on causes and not the symptoms.

Cause and Effect Diagram

Usually created by a group of people who have knowledge of the process and understand the
problems in the present system.

It assist in helping to find the root causes of a problem and in generating improvement ideas.

It clarifies the understanding the team has regarding the process. If an Ishikawa diagram does not
show appropriate level of detail, it indicates that the team has a superficial knowledge of the problem.
Hence, additional study of the system or involvement of Subject Matter Experts is required.
Cause and Effect Diagram – steps involved

 The effect (a specific problem or a quality characteristics) is considered to be the head, and the
potential causes and sub-causes of the problem, or quality characteristics to be the bone
structure of the fish. Hence write the key symptom or effect of the problem in a box to the right-
hand side.
 Draw a horizontal line from the left-hand side of the box.
 Identify the major categories for causes of the effect, which form the main branches of the
diagram.
 Conventionally the main bone structure or branches are the 5Ms: Machine, Manpower,
Method, Materials, Maintenance (followed in manufacturing industry) and the 4Ps: Policies,
Procedure, people, Plant (followed in non-manufacturing industry). The team may come out
with other relevant major categories according to the problem.
 Ensure that the team have a good knowledge of the process and understand the problem under
study.
 Conduct a brainstorming session with all the team members to generate the possible causes of
the problem.
 Categorize the causes identified into groups and subgroups. A popular way to do this is through
using Affinity diagrams.
 Write the names of categories above and below the horizontal line. Start with high level groups
and expand each group (up to 3 or 4 levels). Write down the detailed cause data for each
category

Pareto Analysis

 It is a ranked comparison of factors related to a quality problem.

 Pareto diagram displays the relative importance of problems is a simple visual format.
 Since availability of money, time and other resources are restricted, Pareto analysis helps the
team to consider only vital few problematic factors out of trivial many, which if addressed with
due care, will bring greatest rewards with minimum resources.
 Pareto diagram is based on the Pareto principle, also known as 80-20 rule, which states that a
small number of causes (20%) is responsible for a large percentage (80%) of the effect.
  The Pareto Diagram is named after Vilfredo Pareto, an economist from Italy. Pareto studied
distribution of wealth and found that the distribution was not equal across the population. He
found – majority of the wealth is concentrated in relatively few.
 Pareto’s theory was popularized by Dr. Joseph M. Juran, who is regarded as the father of quality
control. It was Dr. Juran who called the eighty-twenty ratio propounded by Pareto as the
“Pareto principle”.
 Dr. Juran termed those few contributors which account for bulk of the effect as ‘Vital few’.
 He termed other sources which do not contribute significantly to the effect as ‘Trivial many’.

Pareto Diagram – steps involved

 Put together a cross functional team who have knowledge of the different opportunities or
problems.
 Create different categories for the opportunities.
 Select a time interval for the analysis which is reasonable.
 Determine the total occurrences of events in each category.
 Rank the total occurrences in each category from maximum to minimum.
 Compute the percentage for each category by dividing by the category total and multiplying by
100.
 Create a graph of the opportunities – with the category names in the X Axis and the % of
opportunities in the Y Axis.

 This is an example of a Pareto diagram of the complaints received in a Hotel over a period of last
three months. The Hotel management is concerned about the increasing customer complaints.
  The horizontal axis represents various types of complaints and the vertical axis displays the
number of complaints in each category.
 The right-hand vertical axis displays the cumulative percentage of the complaints. The blue
curve represent this data.
 From this we can see that only the first four complaint category (Room service, Housekeeping,
Reservation, Food and Beverages) constitute 80% share of the total complaints. Hence these
four areas need immediate attention to improve the process performance.

Scatter Diagram

 It is a graphical representation that depicts the possible relationship or association between two
variables, factors or characteristics.
 It provides both a visual and statistical means to test the strength of a relationship.
 Construction of a Scatter diagram:
 Collect the data on both variables, preferable sample size of 20 or more.
 Plot the data points on a XY plane where variable 1 is plotted along X axis and variable 2 is
plotted along Y axis.
 Identify the linear relationship between them if it exists.
 Identify the strength of the linear relationship as strong/ weak positive, and strong/ weak
negative.

From the above scatter diagram we can see that the factors X and Y are having a negative liner
relationship. Individual data points are plotted as bullet points and the trend line indicates there is a
linear relationship.

Control Chart

 It is a tool used in the control phase of the six sigma project.

 It distinguishes special from common causes of variation.
  Common causes of variation are natural in the process. They are small in magnitude and difficult
to identify / remove from the process.
 Special causes of variation occurs due to some special causes. They are large in magnitude and
easy to identify / remove from the process.
 There are three major components of a control chart: Upper Control Limit (UCL), Lower Control
Limit (LCL), and Center Line (Mean).
 Information required for a control chart is a count or measurement from a process whenever an
event occurs or at regular time intervals.

Lets take a look at a sample control chart. Data obtained from the process is plotted in a chart as shown
below.

Components of Control Chart

 Mean: It is the simple average of the process data. It is displayed as a center line in the control
chart and individual data points are scattered around it.
 Upper and Lower Specification Limits (USL and LSL): These are obtained by taking the voice of
the customer. A process would satisfy customer requirements if it falls within the specification
limits.
 Upper and Lower Control Limits (UCL and LCL): These are calculated from the process data and if
all the process data stays within the control limits then it is very likely that the variation is
inherent in the process i.e. common cause of variation. UCL and LCL lie within the upper and
lower specification limits. If the process data lies outside the control limits, then it is a special
cause of variation
DFSS

 Design for Six Sigma (DFSS) is an application of Six Sigma which focuses on the design or
redesign of the different processes used in product manufacturing or service delivery by taking
into account the customer needs and expectations.
 DMADV is a common DFSS methodology used to develop a process or product which does not
exist in the company.
 DMADV is used when the existing product or process doesn't meet the level of customer
specification or six sigma level even after optimization with or without using DMAIC.
 Companies using DFSS: GE, Motorola, Honeywell, etc.

DMADV (Define, Measure, Analyze, Design, and Validate)

 DEFINE the project goals and customer deliverables

 MEASURE the process to determine the current performance level
 ANALYZE and determine the root causes of the defects
 DESIGN the process in detail to meet customer needs
 VALIDATE the design performance and its ability to meet the customer needs