Six Sigma Yellow Belt

SIX SIGMA YELLOW BELT TRAINING

Sudhakar SR

Objectives

• Understand the need for Six Sigma• Explain the Six Sigma DMAIC process• Clarify the roles of the Sponsor and the Project Leader• Understand the key differences between traditional problem

solving methods and the Six Sigma approach• Demonstrate the 7 basic tools• Develop an awareness of the various Six Sigma tools and

their applicability• Outline the key attributes of a Six Sigma project

Overview

Section A: Six Sigma Concepts

Section B: Six Sigma Roles and Responsibilities

SECTION A

SIX SIGMA CONCEPTS

Six Sigma is a Business PhilosophySix Sigma is a Business Philosophy

Six Sigma

Customer focused business improvement process. Defect reduction in a process or product. Common measurement scale called the Sigma capability or Z. Six Sigma capability corresponds to an efficiency of 99.9996%.

Six Sigma was developed by Bill Smith, QM at Motorola It’s implementation began at Motorola in 1987 It allowed Motorola to win the first Baldrige Award in 1988 Several major companies in the world have adopted Six Sigma

since then .…and applied to Manufacturing processes to improve product quality

Texas Instruments, Asea Brown Boveri, AlliedSignal, General Electric, Bombardier, Nokia Mobile Phones, Lockheed Martin, Sony, Polaroid, Dupont, American Express, Ford Motor,…….

GE applied the Six Sigma methodology to improve all business processes and it became a way of running the business.

Six Sigma is a Competitive ToolSix Sigma is a Competitive Tool

History

Applicable at all levelsApplicable at all levels

Expectations of People Capability

50,000 feet view

500 feet view

5 feet view

Ground level

Characterize & Optimize

Define, Measure, Analyze, Improve & Control

3 + 12 step process

Tools (info synthesis and statistics)

Everybody should understand, use & teach

Executives - understandManagers - understand, use and teach (YB)

Managers understand, Project Leaders understand, use and teach (GB/BB)

GB/BB understand, useMBB teach

LEVEL CONTENT COMPETENCY

The Standard Deviation

m

1s

T USL

p(d)

Upper Specification Limit (USL)Target Specification (T)Lower Specification Limit (LSL)Mean of the distribution (m)Standard Deviation of the distribution (s) 3s

1 Sigma - 68%

2 Sigma - 95%

3 Sigma - 99.73 %

S (X – X)2

n-1s =

Target

CustomerSpecification

Target CustomerSpecification

1s

2s

3s

A 3s process because 3 standard deviationsfit between target and spec

3s

0.27% Defects up-to 6.6 %

Before

What Is Six Sigma

1s2s3s4s

5s6s

After

6 !sNo Defects!

Reducing Variability Is The Key To Six Sigma

The Focus of Six Sigma

· Dependent· Output· Effect· Symptom· Monitor

· X1 . . . XN

· Independent· Input-Process· Cause· Problem· Control

f (X)Y

Would you control target or the shooter to get the Gold Medal?

The Eye of the Beholder

Customer Process

Supplier Process

CA B

Customer’s View How did Supplier influence my

A® C Performance?Handling Defects found at my end

Supplier’s View

How did I do against my

A® B Obligations?Handling Damage at my end

Focusing on Average

Focus on Average can turn your business redFocus on Average can turn your business red

Average River

Depth -4ft

How are we viewed by our customers?

• Reactionary, not preventative• Adequately responsive to

customer needs• Problems not permanently

solved• Hard perennial problems not

solved. • Inconsistent• Flawed Startups

Customers look for our competitors

The Need for Six Sigma

How do we want to be viewed by our customers?

• Proactive• Quick, agile• Having robust products• System experts• Flawless during startups• Continuously improving

through an Enterprise-wide problem prevention/problem solving culture

Our Customers’ Best Supplier

The Need for Six Sigma

The DMAIC Methodology

Improve

You have a problem definition and a thorough

execution plan

Ensure you have output measures for process and

reliable ways of measuring it

You ensure reliable analyses and decisions

Identify Project, People and Process

Find the gaps between current and final states

Find root causes and develop solution

You have the solution to the problem

You understand the problem now

Communicate, standardize and document the improvement

You have ensured sustained improvement

Analyze

Control

Measure

Define

STEP OUTPUTINPUT

6 Sigma

Methods

Manufacturing

EngineeringMarketing

Purchasing

Software

HR

Finance

... Can Be Applied To Every Business Function

Where to apply…..

Example - Pizza Delivery Service

Dabbawala and Co. a fast food company, owned by Mr. Dabbawala Pizza runs a pizza delivery service in and around Delhi. Dabbawala and Co. which was doing very well over the last four years, notices a drop in sales over the past five months. Customer complaints about deliveries have been gradually on the rise. Several complaints from customers regarding irregular deliveries were bothering Dabbawala. He had increased the number of delivery personnel to improve delivery performance. But his customers were still leaving him.

Pizza Hut, a multinational fast food chain, had set up shop in downtown and was becoming more popular with the customers. Dabbawala neither had the financial muscle to match Pizza Hut’s advertising blitz nor could afford the expensive packaging to lure his customers back.

1. How does the customer view Dabbawala’s Quality?

2. Who are the stakeholders - Customer and Process Improvement Team?

3. Which of his processes should he try to improve in order to improve Sales?

The Define Phase

Grow revenues

ImproveSales

So what’s new

Get moreorders

Divisional directive

Plant objectives

Functional goals

Employees

A. IDENTIFY PROJECT CTQs:

A requirement of the customer is that the Pizza should be delivered on time. Thus for the customer, Delivery is Critical to the Quality of Dabbawala’s service (CTQ).

Voice of Customer (VOC) Affinity Diagram CTQ Tree.

The Define Phase - Step A

The Define Phase - Step B

B. DEVELOP TEAM CHARTER:

The Business CaseWhy should the project be done

Problem and Goal StatementDescription of the problem/opportunity

Roles and ResponsibilitiesThe team, expectations and responsibilities

Stakeholder Analysis, TMAP, Gantt Chart

The Define Phase - Step C

C. DEFINE PROJECT SCOPE:

Identify the high level process to be improvedDefine boundaries of project

SIPOCStratification AnalysisContract Sheet

The 7 Basic Tools - 1

STRATIFICATION ANALYSIS:Stratification analysis (Is / Is Not Matrix) is helpful in defining the conditions surrounding the problem - bounding or scoping

Is Is Not Distinctions

GeographySouth, East and Central Delhi

West and North Delhi

West and North Delhi are sub-contracted

Output Delivery timeMixups, Hygiene, Temperature

CustomerLower and Middle Income

Higher IncomePremium service for higher income group

Time After Aug 09 Before Aug 09Increased employees in Aug 09

The Define Phase - Summary

The Define phase is owned by the Project Sponsor. The three steps of the Define phase are:

1. Identify Project CTQ2. Develop Team Charter3. Define Project Scope

VOC, Affinity Diagram,

CTQ Tree, Gantt Chart, SIPOC, Stakeholder Analysis, TMAP, Stratification

Analysis

Grow revenues

Widen Customer

Base

Reducevariation in

delivery time

ImproveDeliveryprocess

Divisional directive

Plant objectives

Functional goals

Employees

1. IDENTIFY CTQ CHARACTERISTICS

Translate the CTQ to a measurable output of the delivery process

Delivery time can be measured in many ways:

1. No. of times the delivery person delivered during the shipping window (Discrete measure)

2. Time taken to travel from Dabbawala’s location to customer location (Continuous measure)

3. Actual delivery time as seen by customer (Continuous measure)

Delivery time is the Project Y.

The Measure Phase - Step 1

2. DEFINE PERFORMANCE STANDARDS:

What are the customer’s requirements on Delivery time?What is the definition of a defect?

1. Capture the Target (mean) delivery time - On time2. Get the allowable variation on Y - +/- 30 minutes

VOCCompetitive Benchmarking


Target

Los

s

Y

Loss (Deviation)2

LATE DELIVERY

153045 15 30 450

LSL USL

Visualize customer requirementsVisualize customer requirements

Customer does not want

earlier than this

The customer tolerance

window is 30 minutes on either side

This is the target

delivery time

EARLY DELIVERY (MINUTES)

Customer does not want later than this



Preparation for data collection:

1. The Y or the Delivery Process Output2. The Xs or the Inputs to the Delivery Process

Generate a list of XsBrainstorming Process Map (PMAP)Failure Modes Effects Analysis

(FMEA)Cause & Effect Diagram or FishboneQuality Function Deployment (QFD)Prioritization MatrixCheck-sheet


CHECK-SHEET (DATA COLLECTION FORM)

Check-sheet is a data collection sheet used to record occurrences of an event to look for patterns in the data in order to quantify the problem and to facilitate understanding.

Categories Jan 6 Jan 7 Jan 8 Jan 9 TotalMisinterpretedLabel

llll llll llll llll llll l llll llllllll

llll lll 47

Traffic llll lll llll llll llll ll 24

Parking lll llll ll ll llll l 18

Large Order llll lll llll ll 15

Locating home ll l l lll 7

Others l ll l 4

NO. OF LATE DELIVERIES

Prepare to collect data on the Xs also !Prepare to collect data on the Xs also !


3. EVALUATE MEASUREMENT SYSTEM:

CAUTION: Objects in mirror are closer than they appear

Measurement system mayintroduce variation into data

Actual process variation + measurement variation = data

Identify and remove contribution to variation from measurement system

Ensure reliable dataMSE, Gage R&R, Test – Re-test, Kappa Method, Intra-Class Correlation

The Measure Phase - Summary

A data collection plan is done in the Measure phase. It sets the expectations for the project. This phase is owned by the Project Leader. The three steps of the Measure phase are:

1. Identify CTQ characteristic2. Define Performance Standards3. Evaluate Measurement System

The list of tools available for the Measure phase are:

Brainstorming, PMAP, FMEA, MSE, GR&R, C&E Diagram or Fishbone, Quality Function Deployment or QFD, Prioritization Matrix,

Learn more about the PMAP, FMEA and MSE in the Six Sigma Green Belt Training.

4. ESTABLISH PROCESS CAPABILITY

• What are the chances of your process creating defects?• Baseline the current process:• Measure variation in current process output• Evaluate against Performance Standards

• Understand variation in your data with the help of:HistogramBox and Whisker plotDot plotStandard DeviationVarianceSum of Squares

The Analyze Phase - Step 1


HISTOGRAM

The Histogram is a graphical data summary tool which groups observed data into pre-defined bins in order to analyze the data values and distribution.

Target time hrs

Delivery time hrs

12:30 12:1812:30 12:2613:30 13:3413:30 13:4213:00 13:0713:00 13:0613:30 13:2313:30 13:4112:30 12:2612:30 12:37

Target time hrs

Delivery time hrs

13:00 12:3813:00 13:0913:00 12:4913:00 13:0513:30 13:3112:00 12:0412:00 12:0812:00 12:1013:00 13:1813:00 13:01

Target time hrs

Delivery time hrs

13:30 13:4513:30 13:2112:00 12:1712:00 11:5812:00 12:1712:00 11:4612:00 11:5312:30 12:3312:30 12:3013:30 13:28


CREATING A HISTOGRAM:

Using the concept of the late and early deliveries, take the target time as the reference, and find the number of minutes by which each delivery is late or early.

1. Subtract Target time for each data point from the Delivery time

2. Define 5 predetermined bins (class intervals) of size equal to 10 minutes, from -25 to 25 on a horizontal line

3. Place each data point vertically in a bin according to its value

4. Draw a bar equal to the height of stacked up points -25 25-15 -5 5 15


LATE DELIVERY

153045 15 30 450

Measure the process outputMeasure the process output


NU

MB

ER

OF

DA

TA P

OIN

TS Dabbawala has an

average delivery time () 2 minutes late and a

standard deviation () of 10 minutes


LATE DELIVERY

153045 15 30 450

Measure the Process OutputMeasure the Process Output


USLLSL

10 minutes

30 minutesZ =

Process standard deviation

Customer toleranceZ =

Z = 3


ProcessCapability

Defects per Million

Opportunities

2 308,537

3 66,807

4 6,210

5 233

6 3.4

Higher Z implies lower defectsHigher Z implies lower defects

Inspect in Quality

Manufacture in Quality

Design in Quality

It is cost effective to

Sweet Fruit Design for Processability

Bulk of FruitProcess Characterization and Optimization

Low Hanging FruitSeven Basic Tools

Ground FruitLogic and Intuition

3 s Wall, Beat Up Suppliers

4 s Wall, Improve Processes

5 s Wall, Improve Designs

Mikel Harry, 1994

Getting the Competitive Edge

Do you know the Sigma capabilities of the following processes?

U.S. Manufacturing industry average

Japanese manufacturing industry average

Flight fatality in airline industry

Airline Baggage handling

Doctor prescription writing

Tax advice by Internal Revenue Service in U.S.

4.0

5.5

6.4

3.2

2.8

2.5

Sigma capability, Z

Industry Benchmarks

Six Sigma is a MetricSix Sigma is a Metric

Target

USLLSL

CenterProcess

ReduceSpread


Process Off Target Excessive Variation in ProcessTarget

USLLSL

Target

USLLSL

Understand your ProblemUnderstand your Problem

5. DEFINE PERFORMANCE OBJECTIVES

Hypothesis testing

Quiz - Characterize

Six Sigma is aA. Statistical Quality ToolB. Business PhilosophyC. U.S. Management style

The goal of Six Sigma is toA. Reduce defects to 3.4 per millionB. Improve productsC. Reduce variation

In the Pizza Delivery Service example, what is the CTQ?A. LunchB. TimeC. Delivery

If a process is Six Sigma (Z=6), it implies A. Process is 99.99% goodB. Products are 99.99% defect freeC. There are only 3.4 defects in a million opportunities

What is the Y?A. Measurable Process OutputB. Voice of the CustomerC. Process Input

Who gives the USL and LSL?A. ManagementB. CustomerC. Derived from the process data

In the example, the Voice of the Customer is characterized byA. Delivery timeB. No. of deliveries madeC. Tolerance around the Target

In the example, the delivery service is characterized byA. Mean delivery timeB. Tolerance around the TargetC. Mean & variation of the delivery time

6. IDENTIFY SOURCES OF VARIATIONTo find root causes or Xs

Fishbone or C&E Diagram (Ishikawa)PMAPFMEAQFD

Fishbone (Ishikawa) is another of the 7 basic tools. It is also known as the Cause & Effect Diagram. It is a hierarchy of causes that starts with the primary cause and then steps several layers in detail to drive towards possible root causes.


DeliveryTime

MACHINE MOTHER NATURE MATERIALS

MAN METHODS

Poor dispatching

Delivery person gets lost

Delivery person does not show up Poor handling of large orders

Run out of storage space on vehiclesWeather

Too many sacks

Develop a list of Xs that possibly affect YDevelop a list of Xs that possibly affect Y


Don’t know routes

High turnover

Get wrong information

Did not understand

labelsNo

teamwork

No training

Unreliable bikes

Delivery persons own junk

Cant locate employees homes

Not on std routes

Did not understand

labels

Too few delivery persons

Uneven distribution of delivery loads

MEASUREMENT

No money for repairs

Too many orders per person

Too few delivery persons

Large items difficult to carry

in bus /bikes

Sacks too small

Bus service unreliable in peak hours

Too much traffic

Parking space problem

FISHBONE

7. SCREEN POTENTIAL CAUSES

To find the Vital Few Xs and separate it from the Trivial ManyParetoANOVA (Analysis of Variance)RegressionChi-Square tests

Systematic data generation (if historical data is not sufficient)Design of Experiments (DOE)

Statistical Analysis to identify Vital Few XsStatistical Analysis to identify Vital Few Xs

The Improve Phase - Step 1

The 7 Basic Tools -5

PARETOThis is also called the Pareto Principle or the 80/20 rule and is used to identify the Vital Few Xs.

Label

Traffic

Parking

Order Size

Location

Others

Cut-off level to be decided by team consensus based onProcess knowledgeResource availability


8. DISCOVER CAUSAL RELATIONSHIPS

To find out effect of Xs on the Y

X1

Y

X2

RegressionScatter Diagram


SCATTER DIAGRAMA Scatter Diagram is a graph that shows the relationship between two numerical variables, X and Y

NO. OF PIZZAS / DELIVERY PERSON D

EL

IVE

RY

TIM

E S

PA

N

It is used to look for a cause and effect relationship between the two Numerical variables.

In this example, the Scatter Diagram shows that the Delivery time is less if the number of lunches per delivery person is less.

9. ESTABLISH OPERATING TOLERANCES


xL xT xU

USL

LSL

x

y

xfy

NO. OF PIZZAS PER DELIVERY PERSON

DE

LIV

ER

Y T

IME

10. VALIDATE MEASUREMENT SYSTEM ON X

The Control Phase - Step 1

Measure

LSL USL

Tolerance

Ensure noise from measurement system on X is small compared to process variation

process

measurementMSE, GR&RTest - Retest,Kappa Method,Intra Class Correlation

11. ESTABLISH NEW PROCESS CAPABILITY


LATE DELIVERY

153045 15 30 450EARLY DELIVERY (MINUTES)

USLLSL

Z = 4.5

12. IMPLEMENT PROCESS CONTROL

A good Control Plan should be put in place to ensure sustained improvement. This may include:

1. Use of Control Charts to monitor Xs2. Documentation of Control Plan3. Update of process documents such as PFMEA4. Error Proofing5. Standardization


RUN CHART

A Run Chart is a time series plot of data that allows a team to study observed data for trends or patterns over a specific period of time. It captures instances when the process is changing more than statistically expected


0

10

20

30

No

. lu

nc

he

s/p

ers

on

The DMAIC Steps and Deliverables

A. Identify project CTQs Identify customers, customer CTQs and Business Case

B. Develop Team Charter Problem statement, Project Scope,Team, Milestones

C. Define Project Scope High Level Process Map connecting customers to process

1. Select CTQ characteristic Identify measurable characteristic of CTQ (Y)

2. Define performance standards Confirm specification limits (requirements) for Y

3. Evaluate Measurement System Ensure measurement system is capable

4. Establish process capability Baseline the current process

5. Define performance objectives Understand statistical objective - reduce variation or shift means?

6. Identify sources of variation List significant causes (Xs) or factors7. Screen potential causes Determine vital few Xs, which will be controlled

8.Discover variable relationship Find causal relationship and optimal solution

9. Establish operating tolerances Validate the relation and determine specs on Xs

10. Measurement System Evaluation on Xs Ensure X measurement is capable

11. Establish process capability Establish improved capability

12. Implement process control Document control plan

It’s a common sense approachIt’s a common sense approach

STEP DELIVERABLES

Attributes of a Six Sigma GB project

1. Customer Focused: A Six Sigma GB project should address a customer CTQ

2. Data Driven: In a Six Sigma GB project, decisions should be made using data analysis and not on gut feelings or intuitions

3. Variation reduction: Six Sigma GB projects address the issue of variation in process outputs and is aimed at reducing variation

Quiz

Characterize part consists ofA. Define and MeasureB. Define, Measure and AnalyzeC. Define, Measure and part of Analyze

Optimize part consists ofA. Analyze, Improve and ControlB. Improve and ControlC. part of Analyze, Improve and Control

In Six Sigma, Xs areA. Unknown variablesB. Excess variationC. Process Inputs

Which of the following is used to list Xs? A. DOEB. FishboneC. Pareto

The Pareto principle isA. Also called the 80/20 ruleB. Used to identify the Vital FewC. Useful in the Analyze phase

Which of the following tools is used to generate data?A. Analysis of Variance (ANOVA)B. DOEC. Regression

Which of the following cannot identify the Vital Few Xs?A. Analysis of Variance (ANOVA)B. DOEC. Regression

A Six Sigma GB project has toA. Finish in 3 monthsB. Show dollar savingsC. Address the variation issue

SECTION B

SIX SIGMA ROLES & RESPONSIBILITIES

Executive ChampionResponsible for providing resources to BB/GBsHelp in team selectionTrack progress of projectGenerally is supervisor of BB/GB. May help in selection of the projectSponsorCall for need of project (Project identification) Beneficiary of the project Validate current status and status after completion of projectAllocates resources for the projectEnsure compliance to controls established as a result of the projectProject Leader (Black Belt / Green Belt)Lead the projectAsk for resources requiredCall meeting of stakeholders and seek help from EC when stakeholders are not respondingEnsure team involvement and sponsor’s buy in for solutionPublish weekly progress report & call for help when required

Roles and Responsibilities

Deployment ChampionMentor and guide BBs/GBsProvide technical help when BBs/GBs reach a roadblock

Publish Summary report of all projects

Raise alarm when things are not moving

MBBTrain BB/GBAssess the skills of BB/GBCertification of GBs and BBs after completion of projectsDeployment of Global policies and procedures

CFO/FinanceAssess the saving potential at start of projectValidate savings against the targets achieved at completion of project



Yellow Belt (YB): Should understand the DMAIC process and use the Six Sigma philosophy (Stakeholder involvement).

Green Belt (GB): Should be able to use DMAIC process with basic Six Sigma tools for project execution. Lead Six Sigma projects in their functions.

Black Belt (BB): Should be able to use advanced tools in projects and teach Green Belt level techniques / tools. Identifies Six Sigma projects and leads project teams. Mentors Green Belts. Process experts in their functions.

Master Black Belt (MBB): Should be able to train Black Belts and Green Belts. Mentors Black Belt projects. Drivers of cultural change. Process experts in any function. Can develop new tools.

10 weeks (3 - 5 day training)

3 months avg.

Six Sigma GB Training

Project Application

Six

Sig

ma

Achieved a score of 5 or greater in all

tool sets?

No

Improve Tools and Application to Project

Yes

Technical Certification A

A

Project Completed and Final Report Submitted and Approved by Sponsor and

Finance

No

Complete Project and Submit Final Report

Yes

Six Sigma Green Belt and

I & CIM Associate Certification

Based on demonstration of the Six Sigma tools.

• Occurs during project reviews and on-site visits

• Instructor or MBB is responsible for technical certification.

• Evaluation form sent to GB and Champion after each session.

The GB Certification Map

Basic statistics training (not mandatory for Certification)

Summary

• Knowing Customer CTQs• Data driven improvements• Focus on the (Xs) of the process• Application of statistical tools to business problems• Understanding process capability and its impact on quality• An environment that demands only the highest performance

standards.

Success will be defined when our customers notice !

Six Sigma Yellow Belt

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