Lean Six

Sigma

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12
What is your Expectation

2
QUALITY

3
Performance Expectation

4
Quality

Performance(P) Expectation(E)

Hence; QUALITY = PERFORMANCE / EXPECTATION = P/E

If P/E < 1; We have Customer Attrition

If P/E = 1; We have Customer Satisfaction

If P/E > 1; We have Customer Delight

5
Why is customer delight important?? Because it drives
customer loyalty

Delighted customers = loyal customers

Why is loyal customer important?? Because they give repeat
business.

Loyal Customer= Repeat Business = ~85-95% revenue

Lean 6sigma drives this business performance.

6
Inspection Quality

7
 Counting the
f’s
Read the passage given below, individually and considering that every occurrence of
the alphabet “f” is a defect, report out the number of f’s mentioned in the passage.

“The necessity of training farm hands for first-class farms in the fatherly handling
of farm livestock is foremost in the minds of farm owners. Since the forefathers of
the farm owners trained the farm hands for first-class farms in the fatherly
handling of farm livestock, the farm owners feel they should carry on with the family
tradition of training farm hands of first-class farms in the fatherly handling of farm
livestock because they believe it is the basis of good fundamental farm
management.”

8
Six Sigma
History

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913
Evolution of
Six Sigma
What does Quality Mean?
 Detecting and correcting mistakes in the
product such that it meets compliance
standards.

OR

 Preventing defects in the first place

through manufacturing controls and
product design such that it meets
performance standards.

10
Evolution of Six
Sigma
“The real problem at Motorola is
VOB
that our quality stinks”

……1977, Art Sundry

“A product found defective and • Late 1970s - Motorola started experimenting with
corrected during manufacturing had problem solving through statistical analysis.
high probability of failing during
early use by customer”
• Motorola started Six Sigma approach to achieve it’s one
……1985, Bill Smith of the top ten corporate goal of improving the quality by
ten times within five years in 1981.

• The term “Six Sigma” was coined by Bill Smith, an

engineer with Motorola.

• :1987 - Motorola officially launched it’s Six Sigma

program as follows
• Improve quality 10 times by 1989.
• Improve quality 100 times by 1991.
• Achieve six sigma (3.4 DPMO) performance by
1992.
• Motorola won the Malcolm Baldridge National
Quality Award in 1988.
11
Origin of
Six Sigma
Beginning of a new era at Motorola..

• Improve the quality.

• Lower production cost.

• Lower production time.

• Focus on how the product was designed and made.

Motorola gained a return of USD 800 million in two years

12
Growth of Six
Sigma
•
- GE
Jack Welch launched Six Sigma at GE in Jan,1996.

• 1998/99 - Green Belt exam certification became the criteria for management promotions at GE.

• 2002/03 - Green Belt certification became the criteria for promotion to management roles at GE.

• Scope of six sigma initiative has changed from ‘manufacturing’ to the entire business – service,
product design and innovation.

Source: Internet
13
Focus of Six
Sigma
• Reduce Variation.

• Reduce Defects.

• Delighting Customer.

• Reduce Cost.

• Reduce Cycle Time.

14
Lean Six Sigma

15
Six Sigma Levels

16
17
What is your understanding about lean
six sigma
Lean Six sigma

Lean Six sigma

• Elimination of wastages • Structured fact-based data
• Finding the nonvalue driven approach
addition and eliminate it • Focused mainly on reducing
• Something that the the variation in the process
customer is not paying • 6sigma is about efficiency-
• Lean is about effectiveness- doing things the right way
doing the right thing

18
Process A Process B

19
 High Precision High Precision
Low accuracy High accuracy

High

Precision
Low Precision Low Precision
Low accuracy High accuracy

Low

Low High
Accuracy

20
3M
1. It is a metric/
measurement system

2. It is a methodology

3. It’s a management
Philosophy

21
Sigma Levels
and PPM
Sigma Level Part per Million
(PPM)

2 3,08,000

3 66,800

4 6,210

5 230

6 3.4

Mumbai's Dabbawalla are at more than

Six Sigma level

22
Quality
Gurus

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238
Quality
Gurus

Source: Slideshare.net
24
Quality
Gurus
Dr. Walter Shewhart (1891-1967)

• Known for framing the problems of failures in terms of

“assignable causes” and “chance cause” variation.

• Known for the introduction of the SPC – control charts

as a tool for distinguishing between assignable and
chance cause variation.

• Invented control charts which are widely used across

industries to monitor processes and to determine when there
are changes in a process.

• Known for the introduction of the continuous improvement

cycle – Plan –Do –Check –Act (PDCA).

25
Quality
Gurus
Dr. W Edward Deming (1900-1993)

• Made a significant contribution to Japan’s reputation for

innovative, high quality products and for its economic power.

• Championed the work of Walter Shewhart including

statistical process control, operational definitions and
“Shewhart Cycle" which had evolved into PDSA (Plan-Do-
Study-Act).

Dr. Joseph M Juran (1904-2008)

• Made a significant contribution to Japan’s reputation for

innovative, high quality products and for its economic power.

• Known for Juran Trilogy – quality planning, quality

control and quality improvement.

• First to apply the work of Vilfredo Pareto to quality issues

- “vital few and trivial many”.

26
Quality
Gurus
Dr. Kaoru Ishikawa (1915-1989)
• Considered as a key figure in the development of quality
initiatives in Japan, particularly the quality circle.

• Best known for the Ishikawa or fishbone or cause and effect

diagram often used in the industrial processes analysis.

• Translated, integrated and expanded the management concepts

of W. Edwards Deming and Joseph M. Juran into the Japanese
system.

Philip B Crosby (1928-2001)

Philip Crosby is known for his four absolutes of quality

management:
• Quality means conformance to requirements.
• Quality comes from prevention.
• Quality performance standard is zero defects.
• Quality measurement is the price of non-conformance.

27
Six Sigma
Organization

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Six Sigma
Team
• Apex Council

• Champion or Sponsor

• Process owner

• Master Black Belt

• Black Belt

• Green Belt

• Team Members

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Apex
Council
Top Management:

• Accountable for Six Sigma business results.

• Develop a strong case for Six Sigma.

• Plan and actively participate in implementation.

• Create a vision and market “change”; Become a powerful

advocate.

• Set clear (SMART) objectives.

• Hold itself and others accountable.

• Demand specific measures of results.

• Communicate results (including setbacks).

• Helping to quantify the impact of Six Sigma efforts on bottom

line.

30
Champion or
Sponsor
Senior Manager:

• Oversees a Six Sigma project.

• Is accountable to the Apex Council.

• Sets rationale and goal for project.

• Be open to changes in project definitions.

• Find resources (time, support, money) for team.

• Help the team overcome roadblocks; smoothen implementation.

• Focus on data-driven management.

• Identify and recruit other key players.

• Assist in identifying and developing training materials.

31
Process
Owner
Functional Head:

• Implements solutions through Black Belts and project teams.

• Provide resources and helps resolve conflicts.

• Accountable to the Apex Council.

• Owns end-to-end process.

• Sets goals for projects.

• Project review: timeline and project is on track.

• Responsible for holding the gains.

32
Master
Black Belt
Six Sigma Coach:

• Advise and mentor Black Belts and teams.

• Communicate with champions and apex council.

• Establish and adhere to a schedule for projects.

• Deal with resistance to Six Sigma.

• Resolve team conflicts.

• Estimate, measure and validate savings.

• Gather and analyze data on team activities.

• Plan and execute training.

• Help teams promote and celebrate successes.

• Document overall progress of Six Sigma.

33
Black
Belt
Facilitator:

• Six Sigma implementation experts with the ability to develop, coach, and lead multiple cross-
functional process improvement teams.

• Use tools to quickly and efficiently drive improvement.

• Facilitate to keep team focused on the project objective.

• Ensure that the Six Sigma methods are followed.

• Help teams learn and understand Six Sigma tools and techniques through regular project reviews.

• Responsible for the ultimate success of the project.

• Trains and develops Green Belts.

• Spread Six Sigma awareness throughout the organization.

34
Green
Belt
Project Team Leaders:

• Lead and Execute Six Sigma as part of their daily jobs.

• Keep the project team focused on the project goal.

• Extract equal participation from all team members. Counsel non participating team members
and motivate them to participate.

• Ensure discipline of Team Meetings is followed and that every meeting starts with an Agenda.
Ensure MOM is distributed the same day.

• Regularly follow up with team members to ensure that assigned tasks are completed on time.

• Manage conflicts and seek intervention of Process Owner / Champion if necessary.

• Dual responsibility of being process experts as well as trained resource on Six Sigma methods and
quality tools.

35
Team
Members
Process Experts: (SME)

• Team members are vital for success.

• Good knowledge of product, process, customer.

• Willing to work in teams.

• Time to work on projects.

• Active in Data collection.

• Responsible for improvement.

• High Participation.

36
Selection of Team
Members

SKILL
CYNICS STARS

Low to High
Negative to Positive ATTITUDE

DINOSAURS RATS

37
DMAIC
Vs.
DMADV Define
project
scope

 
Does
Process
exist?

Measure Measure

DMADV Analyze Analyze

DMAIC
(DFSS) Design Improve

Verify Control

38
Define
Phase

39
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Road map
• Identify your customer
• Capturing the VOC
• CTQ
• Develop the Project Charter
• Map the process

40
Who is your customer

Customer???

Internal External

41
Voice of
Customer
(VOC)

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Gather Voice Of
Customer (VOC)
Key Considerations In Collecting Customer Data:

• Collector’s bias may affect what is heard.

• What contact/relationship do you have with the customer?

• What are your time constraints?

• What budget is available?

• How much certainty to do you need to move forward with the project?

• Ensure customer expectations are aligned with our intentions/actions.

43
Voice of
Customer
Affinity (VOC)
Diagram

48
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Affinity
Diagram
• Record each VOC on a post it note in bold letters.

• Without talking sort the ideas simultaneously as a team into 5 –10 related groupings.

• For each grouping create summary or header cards using consensuses.

• Draw the final affinity diagram connecting all finalized header cards with their grouping.

45
Affinity diagram
– An Example
Flexible product Easy process Availability Personal Advice/consulting
interface

Knowledgeable Knows about my

Low interest rate Easy application Will come to my facility
reps finances

Available outside normal Knows about my

Variable terms Easy access to capital Professional
business hours business

All charges clearly Makes finance

Quick decision Available when I need to talk Friendly
stated suggestions

Pay back when I Make me feel Cares about my

Can apply over phone Responsive to my calls
want comfortable business

No prepayment Know status of loan Patient during Has access to

Talk to one person
penalties/ charges during application process experts

Pre-approved Know status of loan Knowledgeable Provides answers to

Will come to my facility
credit (post-approval) reps questions

Preference if bank Available outside normal Calls if problems

Variable terms Professional
customer business hours arise

Organize VOC into broad categories

46
Voice of
Customer
Kano
(VOC)
Model

51
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 Satisfaction

Delighter More The Better

Dysfunctional +Functional

Must be

Dissatisfaction

48
Kano
Model
Purpose:
 To identify & prioritize the full range of the customers needs.
 Kano model helps to describe which needs, if fulfilled contribute to customer
dissatisfaction neutrality or delight.
 Kano Model Identifies:
• Must be needs - Critical to customer expectation.
• More is better – Critical to customer satisfaction.
• Delighter – Converting wants to needs.

How to built?
 Gather sorted customer needs. Classify
 the needs into 3 Categories:
• Must be
• More the better
• Delighters
 If there is insufficient data to enable the classification, collect addition
data on VOC.
 Prioritize the customer needs to develop the CTQ.

49
Prioritizing VOC for CTQ
Identification – Kano model SATISFACTIO
MORE THE
N
DELIGHTER + BETTER
S (One-dimensional)
INNOVATION COMPETITIVE PRIORITY

• Free upgrades • Seat comfort

• Individual movies and games • Quality of refreshments
• Special staff attention/services • Friendliness of staff
• Computer plug-ins • Baggage speed On-time
(power sources) arrival

+ FUNCTIONA
DYSFUNCTIONAL - L
MUST BE
CRITICAL PRIORITY

• Safe arrival
• Accurate booking
• Baggage arrives with passenger
- • 99 per cent system uptime

DISSATISFACTIO
N

KANO MODEL HELPS TO PRIORITIZE OUR EFFORTS TOWARDS SATISFYING

CUSTOMERS

50
Determine Critical
To Quality (CTQ)

54
51
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Example:
Translating VOC to
CTQs • ‘You take too much time in getting back to me!’
• ‘These forms are too cumbersome!’
Verbatim

• Quick response.
• User friendly forms.
Specific
need

• Process turn around time not

more than 10 minutes.
CTQs
• Form < 2 pages and < 10
Validate CTQ
minutes to complete.
with customer

What gets measured gets managed… help ensure measurable CTQs

52
VOC CTQ
Deliver me product faster Delivery Time between

Newly built multiplex is empty Occupancy %

Response to the query should be faster Response Time / Resolution Time

Document filled incorrectly # of Defects / Defect % / Accuracy

%

Deliver me the pizza hot Temperature of Pizza

Operator took lot of time to complete the activity Response Time / Wait Time

We could not process the loan documents within the Processing Time / Lead Time /
time promised to customer Cycle Time

Loan application form submitted by officer has too # of Defects / Defect %

many errors

53
Develop
Project
Charter

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What is a
Charter?
One of the most important things necessary to get a team started on a footing is a charter.

A Charter:

• Clarifies what is expected of the project.

• Keep the team focused.

• Keeps the team aligned with organizational priorities.

• Transfers the project from the Champion to the Improvement Team.

• Used as a tool by the Apex Council to review project progress.

55
Project Charter

Project Title- Title name

Business Case- Try to convince the top management why is it important??/ what is the impact??/
loss to the organization??/ End with a sense of urgency

Problem statement- what? Where?? Since when??/ what is the impact

Goal statement- SMART-

Project scope –

Project timelines /Milestone-

D- start date and end date-( 4 weeks)
M - start date and end date-( 4 weeks)
A - start date and end date- (8-10 weeks)
I - start date and end date- ( 4 weeks)
C - start date and end date- ( 4 weeks)

Project team members- Sponsor/ Champion

Business Head
Project Lead
Green belts
Team members 56
Business
case

Why is this project worth doing?

Why is it important to do now?

What are the consequences of

not doing this project?

What activities have higher or

equal priority?

How does it fit with business

initiatives and targets?

57
Problem
Statement
The purpose of the Problem Statement is to describe what is wrong - Description of the “pain”
• What is wrong or not meeting our customer’s needs?

• When and where does the problem occur?

• How big is the problem?

• What’s the impact of the problem?

58
Problem
Statement
Key Points / Potential Pitfalls

• Is the problem based on observation (fact).

• Does the problem statement prejudge a root cause?

• Can data be collected by the team to verify and analyze the problem?

• Is the problem statement too narrowly or broadly defined?

• Is a solution included in the statement?

• Is the statement blaming any person or function?

59
Problem Statement -
Examples
Example 1

Poor Statement
Because our customers are dissatisfied with our service, they are late paying their bills.

Improved Statement
In the last 6 months (when) 20% of our repeat customers – not first timers (where) – were over 60 days
late (what) paying our invoices. When surveyed, all of these customers reported extreme dissatisfaction
with our service (what). The current rate of late payments is up from 10% in 1990 and represents 30% of
our outstanding receivables (how big). This negatively affects our operating cash flow (impact).

Example 2

Poor Statement
Customers are unable to access the call center half the time leading to high revenue losses.

Improved Statement
During the year 2003, (when), 40% of our customers (extent) were unable to access the call center at the
first attempt (what). This causes dissatisfaction to our customers and a loss of revenue opportunities to the
organization (impact).

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Problem Statement
As seen from the data from march 2020 to July 2020, the
productivity in the prescription translation process at
Mumbai branch has decreased from 2 cases per hour to 1.5
cases per hour. This has resulted in customer
dissatisfaction and loss of revenue to the organization

Is this a good problem statement??

61
Goal
Statement
• The Goal Statement defines the team’s improvement objective.

• Define the improvement the team is seeking to accomplish.

• Must not assign blame, presume cause, or prescribe solution!

• Goal Statement has four parts:

o Start with a verb (e.g., reduce, eliminate, control, increase).

o Focus of project (cycle time, accuracy, etc.).
o Has a definite Target (by 50%, by 75%).
o Has a definite deadline (completion time).

Specific Measurable Achievable Realistic Time bound

62
Goal Statement

Improve average daily TAT SLA compliance to 75% in

next 3 weeks

Is this a good Goal statement??

63
Goal Statement

Reduce the average waiting time to meet the doctor

from 55 mins to 10 mins by 28th feb 2022

Is this a good Goal statement??

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Goal Statement

Improve average process accuracy from 87.5 % to 96%

by Sept 30, 2022.

Is this a good Goal statement??

65
Project Scope and
Milestones
Project Scope
/ Project Plan
• What process will the team focus on?
• What are the boundaries of the process we are to improve? (Start and End points of the
process).
• What (if anything) is out of bounds for the team?
• What (if any) are the possible constraints?
• What is the time commitment expected of team members?
• What will happen to our ‘regular jobs’ while we are doing the project?
Milestones (Project Plan)
• It is a detailed project plan with key steps and target completion dates.
• Tied to phases of DMAIC process, with defined tollgate reviews.
• Aggressive and Realistic (no ready-made solution).
• Documented, shared with all project team members and Champion, and updated regularly.

66
Elements of a
project charter
Does project “Y” What is the estimated target for Key milestones/
link to business Y’s? improvement? timelines/detailed plan

Business Problem/ Goal Milestone/ Resources/

opportunity Project
case/ statement project team
statement scope
Benefits plan members
Roles

Who are the key resources ?

What will be the roles of BBs/
What is the problem/ GBs/Sponsor/MBB’s
opportunity of improvement?

Clearly defining project’s In

scope and Out of Scope

67
 Lean Six Sigma Project Charter
Project Title

Problem Statement / Opportunity Statement Business Case / Benefits

Description of the pain?? Why do the project? Big Picture… (English)
Why do it now?
What is the problem? What is happening wrong? What are the consequences of not doing the project?
How big the is problem? (Quantify the problem)
When and where is the problem? Impact of pain in Rs. (or soft)
What is the impact of the problem? Avg case size:

Goal statement Project scope

Metric Current level Goal / Target Target date
CTQ (Y) x MONTHS

Timeline / Project plan Team Selection

Phase Start End Remarks Sponsor:
Define Champion:
Measure Mentor:
Analyze Project Leader(GB):
Improve Member
Control Member
Member

68
 Bank of XYZ, a major bank receives on an average 2000 new saving account opening
customer application forms every day. 40 operators enter the application forms in a
database after cross checking the CAF (Customer Application Form) with Identity
Case Study:
Proof The Problem of Delay in Account Opening Time in
details.
Retail
The Banking
entries are rechecked against the Identify Proof details by 15 Quality Assessors
and further 5% sample is audited by 3 Quality Supervisors. The sales team promise
the account opening within 48 hours from receipt of the CAF. Bank of XYZ usually
achieves the account opening within average of 30 hours with a standard deviation of
6 hrs.
Recently, after a significant marketing effort, they started receiving over 3500 CAF, so
the organization decided to increase the number of operators from 40 to 80. However,
after the increase in number of operators, the % of defects in the CAF increased far
more than the acceptable 10% of total opportunities for error and processing time of
CAF also increased, leading to account opening taking more than target of 48hrs.
The Bank is losing $3750 every day primarily on rework and penalties. The customers
are also dissatisfied as the account opening is taking more time than promised. In the
wake of the current business situation, the management team decides to initiate a Six
Sigma project to reduce defects and achieve target account opening time .
69
Sample
project
charter

70
Sample
project
charter

71
Create a Project
Charter
Work out
session

68
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Map the
Process

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What is a process

Process

Input Output

74
Process definition
and elements
Process is a collection of activities that takes one or more inputs and transforms them into
outputs that are of value to the customer.

The Business Process

Inputs Outputs

Supplier(s) Customer(s)

Types of Process Maps:

• SIPOC (Supplier-Input-Process-Output-Customer) (L1)

• Sub Process Map (L3,L4,L5)

• Value Stream Mapping (L1,L2)

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72
75
Map the
Process
SIP
OC

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Macro level Micro level

Flow chart,
SIPOC swimlane and
VSM

Suppliers Inputs Process Output Customer

1 1 1 1 1
2 2 2 2 2
3 3 3 3 3
4 4 4 4 4
5 5 5 5 5
6 6 6 6 6
7 7 7 7 7
8 8 8 8 8

77
SI
PO
C
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 – may be internal or external

78
SI
PO
C

79
SIPOC
Example
Let us look at an example of Purchase Order (P.O.) Requisition to final Approval

80
Map the
Process
Sub Process
Mapping

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Sub-process
mapping
Here are some guidelines on building a sub process map. These are not absolute – but they should
help you avoid some of the pitfalls of process mapping:
– Focus on ‘As is’ – To find out why problems are occurring in a process, you need to concentrate
on how it’s working now.
– Clarify boundaries – If you’re working from a well-done high level map, this should be easy. If
not, you will need to clarify start and stop points.
– Brainstorm Steps – It is usually much easier to identify the steps before you try to build the
map.
– Starting each step description with a verb (e.g., ‘collate orders’; ‘review credit data’) helps you
focus on action in the process.
– Who does the step is best left in parentheses (or left out) – you want to avoid equating a
person with the process step.

82
Examples: Sub-
process mapping
Process flowchart Top down flow chart Deployment or cross-functional
map/ swim-lane flowchart

Planning for a party

Dept 1 Dept 2 Dept
1.0 2.0 3.0
Determine Find Invite
party size location guests Creates
List
1.1 2.1 3.1
Yes
Decide Decide Complete Writes Is the Sends out the
on budget theme invitations
invitation guest list invitation
No Covered

1.2 2.2 3.2

No
Decide on Select Send
Yes guest list location invitations
Completes
list

Invitation task
completed

83
Examples: Cross
Functional Process
mapping

84
Group
Exercise
• Earlier in define, you developed a high-level or SIPOC process map. By looking at a process
from a ‘big picture’ perspective.
• You evaluated customer needs and supplier inputs, and determined initial measurement objectives.
• Now, you will look in more detail at the sub processes defined in the SIPOC map.
• Sub process maps provide specifics on the process flow that you can then analyze using several useful
techniques.
• Choose what to sub process map by determining which of the major steps in the SIPOC have the
biggest impact on the output (Ys).
• The block (or blocks) selected is the one on which you create a sub process map – using it to understand
how and why it impacts the output.
 If the output is a time measure, which of the blocks consumes the largest portion of total time,
or which one has the most variation or delays?
 If the output is a cost measure, which of the blocks adds the most cost?
 If the output is a function measure, which block has the most errors or problems?
• Like working with a puzzle, you begin to assemble the pieces of an area on which it makes sense to
focus our efforts.

85
Points to
Remember
Points to Remember:
• People who work on the process know it the best. Involve people who know (focus on) the ‘as Is
process’

• Decide, clarify and agree upon process boundaries

• Use group activities like brainstorming

– Use verb - noun format (e.g., Prepare contract not contracting)

– Do not aim at the person taking care of the activity

• Respect the boundaries

• Do not start ‘problem solving’

• Validate and refine before analyzing

86
Inference from
Define
At the end of thePhase
Define phase, we should be able to identify the problem from all the following
perspectives:
• Define the problem statement.

• Identify your customers.

• Identify the CTQ.

• Create high-level process map.

• Identify team members and business functions required.

• Develop a project charter.

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Measure
Phase

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 Measure Phase -
Roadmap

Develop
Introduction Develop
Types of Data Data Process
to sampling MSA
Data Distribution Collection Capability
Minitab strategy
Plan

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Y= f(x)
The main objective of Measure phase is to find out the baseline by
1. Collecting the data
2. Measuring the data
3. Graphically presentation the data
4. Data distribution
5. MSA – Validating the measurement system
6. Process stability
7. Calculating the process capability

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Types
of Data

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 DATA

Continuous Attribute/Discrete
Data/Variable data

1. Anything that can 1. Counting

be measured on a 2. How many
scale 3. It has no unit
2. How much
3. It has got units

Binary Nominal Ordinal

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Types of Data – Discrete
and Continuous
Continuous (Variable) Data Discrete (Attribute) Data

• Data that can be measured (with a unit • Data that can be counted is termed as a
value) is termed as a Continuous or Discrete or Attribute data.
Variable data. • Binary (Yes/No, Defect/No Defect).
• Continuous data can be broken down • Ordered categories (1-5).
into increments with infinite number of • Counts.
possible values.
Examples
Examples • Number of incomplete
• Cycle time (measured in days, applications.
hours, minutes, etc.). • Percent of responding with a “5” on
• Weight (measured in tons, pounds, etc.). survey.
• Number of Green Belts trained.

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Why do we
need data?
Why Data Type Important ?

• Choice of data display and analysis tools.

• Amount of data required: continuous data often requires

a smaller sample size than discrete data.

• Information about current and historical process

performance.

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Exercise – Type
of data
1. Percent defective parts in hourly production

2. Percent cream content in milk bottles (comes in four bottle container sets)

3. Time taken to respond to a request

4. Number of blemishes per square yard of cloth, where pieces of cloth may be of variable size

5. Daily test of water acidity

6. Number of accidents per month

7. Number of defective parts in lot of size 100

8. Length of screws in samples of size ten from production lot

9. Number of employees who took leave in the last 5 years

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Develop a Data
Collection Plan

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Participant 1()-
Maintenance
Fueling time
Security
VIP

Participant 2()-
Weather reports
Air traffic
Visibility
Screening machine

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DCP

What is to be collected- Operation definition

Where to collect- source

When to collect- frequency

How to collect- sampling technique- different type of sampling technique

Who is responsible-

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Data
collection
plan Ensure
Why collect consistency
What to collect ? How to collect? Collect data
data? What to & stability
• The purpose of • collect ?
Identify measures • Formulate data
collection plan
• Pilot collection
and validation
• Develop
measurement
the data • Define operational plan system analysis
collection • definitions
Identify measures • Sampling
exercise • Train data • Test and validate
strategy
What data
• • Define to be
operational collectors • Monitor and
collected
definitions • Pilot data
collection plan improvise
• What data to be
collected

Word of caution: Ineffective data leads to ineffective conclusions

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Data
collection
plan
•Data collection occurs multiple times throughout DMAIC. The data
collection plan described here can be used as the guide for data collection.
This help us ensure that we collect useful, accurate data that is needed to
answer our process questions.

• Data collection plan needs to be prepared / referred for data

collection on Y in Measure phase and X’s in Analyze phase. $
• It is important to be clear about the data collection goals to ensure the
right data is collected. If your data is in the wrong form or format, you
may not be able to use it in your analysis.

• Operational definitions help to guide how CTQ will be measured. The

critical factor is that any two people using the operational definition
will be measuring the same thing in the same manner.

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Operational
Definition
What is an Operational Definition?
An operational definition is a clear, concise description of a measurement and the process by which it is to
be collected.

Purpose of Operational Definition:

• To remove ambiguity: Everyone has a consistent understanding.
• To provide a clear way to measure the characteristic.
 Identifies what to measure.
 Identifies how to measure it.
 Makes sure that no matter who does the measuring, the results are consistent.

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 Data collection
Aplan -
format of an Example
excel spread sheet that can be used for creating data collection plans for our projects. The
sample data collection plan below is for the project CTQ, in this example, number of rejections.
However one should remember that based on C-E diagram and the SIPOC all those Xs which the team feels
to have a influence over the Y should also be included in the data collection plan.

Example of a data collection plan

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Develop
Sampling
Strategy

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Sampling technique

Why sampling??

Types of sampling method

1. Random
2. Stratified sampling- grouping
Eg - Sampling carton boxes stacked from floor to ceiling to check for damage due to
storage. We will need to draw samples from bottom, middle and top of pile as factors
affecting damage are different at each of these layer. At each layer we draw Random
samples

3. Systematic sampling

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Population
and Sampling
An entire set of items is called the Population.

What is Sampling?

• The small number of items taken from the population to make a judgment of the population is
called a Sample.

• The numbers of samples taken to make this judgment is called Sample size.

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Sampling
Strategy
1.Random Sampling
Samples drawn at random.
That is, at any point in time, each unit in a “lot” has an equal chance of being the next unit selected for
the sample.
Example: Cycle tyres produced in the assembly line have a random check of 10 per cent (QC) on daily
production.

2. Stratified Sampling
An attempt to draw the sample proportionately over the full operating range of the process.
For example: various batches of material; small and large contracts; all three shifts.
Example: Tyre used with an aircraft is cut open and checked for quality randomly in each model type

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Sampling
Methods
Simple Radom Sampling: Every unit has the same chance of being selected.
Example: Survey across organization to know –”What percentage of employees have visited the intranet in last seven days. Select
employees from Population at random And collect data.

Stratified Random Sampling: Random sampling from proportional subgroups of the population.
Example: Average cycle time for LC issuance process of different countries. Each country is a strata (segment). Collect random
data from each strata.

Systematic Sampling: Includes every nth unit. The formula is

k = N/n (where N is population size and n is the sample size).

Example: Suppose you want to sample 10 houses from a street of 150 houses. 150/10=15, so every 15th house is chosen.

Sampling subgroups: Subgrouping is the process of putting measurements into meaningful groups to better understand the
important sources of variation.
Example: While studying the arrival rate of documents as dispatched by the customer. The entire day is split up into quadrants,
rational being the arrival rate of documents is similar within each quadrant and different between quadrants.

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When to
Sample?
When to sample?
• Collecting all the data is impractical.

• High cost implications due to population study.

• Time availability.

• Data collection can be a destructive process (crash testing of cars).

• When measuring a high-volume process.

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Thank
You
For Feedbacks mail us at [email protected]

Nitesh Jain - KPMG

[email protected]
www.in.kpmg.com

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