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Lean Six Sigma Green Belt Certification Course

Six Sigma and Organizational Goals

Lean Six Sigma Green Belt Certification Course Six Sigma and Organizational Goals
Lean Six Sigma Green Belt Certification Course Six Sigma and Organizational Goals
Lean Six Sigma Green Belt Certification Course Six Sigma and Organizational Goals
Lean Six Sigma Green Belt Certification Course Six Sigma and Organizational Goals

WHAT’S IN IT FOR ME

WHAT’S IN IT FOR ME Identify the Six Sigma process and tools Explain the impact of
Identify the Six Sigma process and tools Explain the impact of Six Sigma in an Use
Identify the Six Sigma process and tools
Explain the impact of Six Sigma in an
Use this space to Animate
organization
See examples:
EXAMPLE 1
EXAMPLE 2
Measure organizational performance
The glass is half Pessimist empty.
The glass is half
Pessimist
empty.
The glass is half full. Optimist
The glass is half
full.
Optimist

INTRODUCTION

The glass is half Pessimist empty. The glass is half full. Optimist INTRODUCTION The glass is
The glass is half Pessimist empty. The glass is half full. Optimist INTRODUCTION The glass is
The glass is half Pessimist empty. The glass is half full. Optimist INTRODUCTION The glass is
The glass is bigger Six Sigma than it needs to be. Practitioner
The glass is bigger
Six Sigma
than it needs to be.
Practitioner
The glass is full with water and air. Realist
The glass is full
with water and air.
Realist
 Introduction to Quality  The Journey of Quality  Quality Management Personalities  Meaning of
Introduction to Quality
The Journey of Quality
Quality Management Personalities
Meaning of Six Sigma
Six Sigma and Quality
Milestones in the Six Sigma Journey
Importance/Purpose of Six Sigma
The Six Sigma DMAIC Process
Applying the Six Sigma DMAIC Process
Key Terms in Six Sigma
Six Sigma Level Conversion Table

Lesson 1: Six Sigma and Organizational Goals

Topic 1.1: Value of Sigma

INTRODUCTION TO QUALITY

INTRODUCTION TO QUALITY MEANING OF QUALIT Y Quality is defined as “Meeting the requirements of the

MEANING OF QUALIT Y

Quality is defined as “Meeting the requirements of the customer."

INTRODUCTION TO QUALITY MEANING OF QUALIT Y Quality is defined as “Meeting the requirements of the

Customer’s expectations

INTRODUCTION TO QUALITY MEANING OF QUALIT Y Quality is defined as “Meeting the requirements of the
Q ?
Q ?
INTRODUCTION TO QUALITY MEANING OF QUALIT Y Quality is defined as “Meeting the requirements of the

Making changes to meet

the expectations

Meeting customer’s

expectations

INTRODUCTION TO QUALITY MEANING OF QUALIT Y Quality is defined as “Meeting the requirements of the

THE JOURNEY OF QUALITY

THE JOURNEY OF QUALITY HIGHLIGHTS IN THE PROGRESS OF QUALIT Y 1930s Statistical Process Control Quality

HIGHLIGHTS IN THE PROGRESS OF QUALIT Y

1930s

Statistical Process Control

1960s

Quality Circles

1987

ISO 9000

Baldridge Award Criteria

Milestones in the

history of Quality

1988

Benchmarking

1990s

Balanced

Scorecard (BSC)

1996

Re-engineering

QUALITY MANAGEMENT GURUS

QUALITY MANAGEMENT GURUS PROMINENT QUALIT Y LEADERS AND CONSULTANTS Leaders and quality management consultants who set

PROMINENT QUALIT Y LEADERS AND CONSULTANTS

Leaders and quality management consultants who set the foundation of modern quality improvement and strategic change are:

14 key principles for management

Seven wastes Plan-Do-Study-Act cycle System improvement

Statistical Process Control charts

Assignable cause vs. chance cause

Statistics for quality management

W. Edwards

 

Walter A.

Deming

Shewhart

Quality trilogy Top management involvement

Joseph M. Juran

• Ishikawa’s cause-and- effect diagram Company-wide quality control Quality circle

Kaoru Ishikawa

Quality loss function concepts

Signal-to-noise ratio Robust design Experimental design methods

Genichi Taguchi

• Crosby’s 14 steps to quality improvement Do It Right First Time Zero Defect

Philip Crosby

MEANING OF SIX SIGMA

MEANING OF SIX SIGMA SIGMA AND SIX SIGMA PERSPECTIVES Sigma (σ) is a Greek letter used

SIGMA AND SIX SIGMA PERSPECTIVES

Sigma (σ) is a Greek letter used in the statistical world to represent a measure of
Sigma (σ) is a Greek letter
used in the statistical world
to represent a measure of
variability.
The Six Sigma process is an improvement method of quality principles and techniques.
The Six Sigma process is
an improvement method of
quality principles and
techniques.
Six Sigma is a business strategy to change company culture with top management support.
Six Sigma is a business
strategy to change
company culture with top
management support.
6 5 Sigma level is a measure 4 of performance for a 3 business processes or
6
5
Sigma level is a measure
4
of performance for a
3
business processes or
3
service.
1

SIX SIGMA AND QUALITY

SIX SIGMA AND QUALITY HOW THE TWO CONCEPTS WORK TOGETHER How Six Sigma impacts the quality

HOW THE TWO CONCEPTS WORK TOGETHER

How Six Sigma impacts the quality of products and services.

Quality
Quality
Six Sigma process
Six Sigma process
SIX SIGMA AND QUALITY HOW THE TWO CONCEPTS WORK TOGETHER How Six Sigma impacts the quality

Increased profits

MILESTONES IN THE SIX SIGMA JOURNEY

MILESTONES IN THE SIX SIGMA JOURNEY EXAMPLES OF THE IMPACT OF SIX SIGMA ON SUCCESSFUL ORGANIZATIONS

EXAMPLES OF THE IMPACT OF SIX SIGMA ON SUCCESSFUL ORGANIZATIONS

Bill Smith and Mikel Harry at Motorola

started the Six Sigma

initiative

Allied Signal saved $0.5 billion with the

use of Six Sigma

Motorola saved $16 billion cumulatively

with the use of Six

Sigma

1986 1995 1998 2000 2001
1986
1995
1998
2000
2001

Jack Welch initiated

Six Sigma at General

Electric (GE) to improve the entire business system

GE saved $2 billion annually with the use of Six Sigma

PURPOSE OF SIX SIGMA

PURPOSE OF SIX SIGMA THE APPROACHES AND OUTCOMES Six Sigma is: • Business methodology • Customer-

THE APPROACHES AND OUTCOMES

Six Sigma is:

Business

methodology

Customer-

centric

Fact-based

approach

$
$

Customer

satisfaction

Shareholder

value

Employee

commitment

ORGANIZATIONAL BENEFITS OF SIX SIGMA

ORGANIZATIONAL BENEFITS OF SIX SIGMA Eliminates the root cause of problems and defects in a process

Eliminates the root cause of

problems and defects in a process

Creates robust products and

services

Reduces process variation and

waste
waste

Ensures customer satisfaction

ORGANIZATIONAL BENEFITS OF SIX SIGMA Eliminates the root cause of problems and defects in a process

Achieves process standardization

ORGANIZATIONAL BENEFITS OF SIX SIGMA Eliminates the root cause of problems and defects in a process

Reduces rework by getting it right

the first time

Addresses the key business

requirement

Helps gain competitive advantage

ORGANIZATIONAL BENEFITS OF SIX SIGMA Eliminates the root cause of problems and defects in a process

Achieves the organizational goals

ORGANIZATIONAL BENEFITS OF SIX SIGMA Eliminates the root cause of problems and defects in a process

BENEFITS TO AN ORGANIZATION

BENEFITS TO AN ORGANIZATION Organizations successful with Six Sigma: 1 2 Have proven systematic problem-solving methodology

Organizations successful with Six Sigma:

1
1

2

BENEFITS TO AN ORGANIZATION Organizations successful with Six Sigma: 1 2 Have proven systematic problem-solving methodology
BENEFITS TO AN ORGANIZATION Organizations successful with Six Sigma: 1 2 Have proven systematic problem-solving methodology

Have proven systematic problem-solving

methodology
5 3

BENEFITS TO AN ORGANIZATION Organizations successful with Six Sigma: 1 2 Have proven systematic problem-solving methodology

4

BENEFITS TO AN ORGANIZATION Organizations successful with Six Sigma: 1 2 Have proven systematic problem-solving methodology

Focus on the customer

BENEFITS TO AN ORGANIZATION Organizations successful with Six Sigma: 1 2 Have proven systematic problem-solving methodology

Achieve long-term improvements

BENEFITS TO AN ORGANIZATION Organizations successful with Six Sigma: 1 2 Have proven systematic problem-solving methodology

THE SIX SIGMA PROCESS

THE SIX SIGMA PROCESS DMAIC PROCESS Each phase has • An over - arching objective •

DMAIC PROCESS

Each phase has

An over-arching objective

Specific deliverables that need to be completed

THE SIX SIGMA PROCESS DMAIC PROCESS Each phase has • An over - arching objective •
THE SIX SIGMA PROCESS DMAIC PROCESS Each phase has • An over - arching objective •

Define

Measure

Analyze

Improve

THE SIX SIGMA PROCESS DMAIC PROCESS Each phase has • An over - arching objective •

Control

THE SIX SIGMA PROCESS DMAIC PROCESS Each phase has • An over - arching objective •

THE SIX SIGMA PROCESS (contd.)

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Document the problem and the desired outcome Define Measure

DMAIC PROCESS

Document the problem and the desired outcome

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Document the problem and the desired outcome Define Measure
THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Document the problem and the desired outcome Define Measure

Define

Measure

Analyze

Improve

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Document the problem and the desired outcome Define Measure

Control

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Document the problem and the desired outcome Define Measure

THE SIX SIGMA PROCESS (contd.)

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Obtain baseline process performance levels Define Measure Analyze Improve

DMAIC PROCESS

Obtain baseline process performance levels

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Obtain baseline process performance levels Define Measure Analyze Improve
THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Obtain baseline process performance levels Define Measure Analyze Improve

Define

Measure

Analyze

Improve

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Obtain baseline process performance levels Define Measure Analyze Improve

Control

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Obtain baseline process performance levels Define Measure Analyze Improve

THE SIX SIGMA PROCESS (contd.)

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Identify key root causes for process variation Define Measure

DMAIC PROCESS

Identify key root causes for process variation

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Identify key root causes for process variation Define Measure
THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Identify key root causes for process variation Define Measure

Define

Measure

Analyze

Improve

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Identify key root causes for process variation Define Measure

Control

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Identify key root causes for process variation Define Measure

THE SIX SIGMA PROCESS (contd.)

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Develop, test, and implement solutions Define Measure Analyze Improve

DMAIC PROCESS

Develop, test, and implement solutions

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Develop, test, and implement solutions Define Measure Analyze Improve
THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Develop, test, and implement solutions Define Measure Analyze Improve

Define

Measure

Analyze

Improve

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Develop, test, and implement solutions Define Measure Analyze Improve

Control

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Develop, test, and implement solutions Define Measure Analyze Improve

THE SIX SIGMA PROCESS (contd.)

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Monitor key factors and maintain the gains Define Measure

DMAIC PROCESS

Monitor key factors and maintain the gains

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Monitor key factors and maintain the gains Define Measure
THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Monitor key factors and maintain the gains Define Measure

Define

Measure

Analyze

Improve

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Monitor key factors and maintain the gains Define Measure

Control

THE SIX SIGMA PROCESS (contd.) DMAIC PROCESS Monitor key factors and maintain the gains Define Measure

THE SIX SIGMA TOOLS

THE SIX SIGMA TOOLS TOOLS USED IN THE DMAIC PROCESS Define Measure Analyze Improve Control •
TOOLS USED IN THE DMAIC PROCESS Define Measure Analyze Improve Control
TOOLS USED IN THE DMAIC PROCESS
Define
Measure
Analyze
Improve
Control
• • SIPOC Voice of Customer • Measurement System Analysis • Simple linear regression (SLR) •
SIPOC
Voice of Customer
Measurement
System Analysis
Simple linear
regression (SLR)
• Brainstorming
Piloting
Control charts
Control plan
(VOC)
(MSA)
Pareto charts
Failure Modes and
Measurement
Critical to Quality
(CTQ)
Quality Function
Fishbone diagram
System Analysis
(MSA)
Control charts
Process capability
Normality plots
Effects Analysis
(FMEA)
Design of
Experiments (DOE)
Deployment (QFD)
Failure Modes and
Failure Modes and
Effects Analysis
(FMEA)
Multi-vari charts
Effects Analysis
Hypothesis testing
(FMEA)
Cause and Effect
(C&E) matrix
Some of the tools are not required in every Six Sigma Green Belt (GB) project.

APPLYING THE SIX SIGMA DMAIC PROCESS

APPLYING THE SIX SIGMA DMAIC PROCESS EXAMPLE OF MEETING CUSTOMERS’ WANTS USING THE DMAIC PROCESS A

EXAMPLE OF MEETING CUSTOMERS’ WANTS USING THE DMAIC PROCESS

APPLYING THE SIX SIGMA DMAIC PROCESS EXAMPLE OF MEETING CUSTOMERS’ WANTS USING THE DMAIC PROCESS A
A cup of coffee is either too hot or too cold. Customers’ feedback
A cup of coffee is either
too hot or too cold.
Customers’ feedback
The problem
The problem
APPLYING THE SIX SIGMA DMAIC PROCESS EXAMPLE OF MEETING CUSTOMERS’ WANTS USING THE DMAIC PROCESS A
APPLYING THE SIX SIGMA DMAIC PROCESS EXAMPLE OF MEETING CUSTOMERS’ WANTS USING THE DMAIC PROCESS A
APPLYING THE SIX SIGMA DMAIC PROCESS EXAMPLE OF MEETING CUSTOMERS’ WANTS USING THE DMAIC PROCESS A
Java House Coffee
Java House Coffee
APPLYING THE SIX SIGMA DMAIC PROCESS EXAMPLE OF MEETING CUSTOMERS’ WANTS USING THE DMAIC PROCESS A
Ideal temperature for a cup of coffee should be between 160F (71C) to 180F (82C). Management’s
Ideal temperature for a
cup of coffee should be
between 160F (71C) to
180F (82C).
Management’s feedback

APPLYING THE SIX SIGMA DMAIC PROCESS

APPLYING THE SIX SIGMA DMAIC PROCESS EXAMPLE OF MEETING CUSTOMERS’ WANTS USING THE DMAIC PROCESS The

EXAMPLE OF MEETING CUSTOMERS’ WANTS USING THE DMAIC PROCESS

APPLYING THE SIX SIGMA DMAIC PROCESS EXAMPLE OF MEETING CUSTOMERS’ WANTS USING THE DMAIC PROCESS The
The solution
The solution
APPLYING THE SIX SIGMA DMAIC PROCESS EXAMPLE OF MEETING CUSTOMERS’ WANTS USING THE DMAIC PROCESS The
Average DMAIC process and tools Average USL LSL LSL USL 170F 170F 180F 160F 180F 160F
Average
DMAIC
process and
tools
Average
USL
LSL
LSL
USL
170F
170F
180F
160F
180F
160F
Poor process capability
Excellent process capability

KEY TERMS USED IN SIX SIGMA

KEY TERMS USED IN SIX SIGMA EXPLANATION OF TERMS Frequently used terms in the Six Sigma

EXPLANATION OF TERMS

Frequently used terms in the Six Sigma process are

Specification limits

Opportunity

Defect
Defect

Defective

Rolled Throughput Yield

(RTY)

Defects per Million

Opportunity (DPMO)

KEY TERMS USED IN SIX SIGMA

KEY TERMS USED IN SIX SIGMA EXPLANATION OF TERMS Frequently used terms in the Six Sigma

EXPLANATION OF TERMS

Frequently used terms in the Six Sigma process are:

Specification Limits

Opportunity

Defect
Defect

Defective

Rolled Throughput Yield

(RTY)

Defects per Million

Opportunity (DPMO)

Meaning

Limits set by a customer representing the range of variation the customer can

tolerate or accept

Explanation with regard to the Java House coffee example

The Java House Coffee customers had an acceptable coffee temperature

range of 160F to 180F

 
Meaning Limits set by a customer representing the range of variation the customer can tolerate or
Meaning Limits set by a customer representing the range of variation the customer can tolerate or
Meaning Limits set by a customer representing the range of variation the customer can tolerate or

KEY TERMS USED IN SIX SIGMA (contd.)

KEY TERMS USED IN SIX SIGMA (contd.) EXPLANATION OF TERMS Frequently used terms in the Six

EXPLANATION OF TERMS

Frequently used terms in the Six Sigma process are:

Specification limits

Opportunity

Defect
Defect

Defective

Rolled Throughput Yield

(RTY)

Defects per Million

Opportunity (DPMO)

Meaning

Every chance for a process to deliver an output characteristic that is either

“right” or “wrong” as per the customer specifications

Explanation with regard to the Java House coffee example

The coffee temperature was the only output characteristic identified from the

customer, which would represent one opportunity per cup of coffee

customer, which would represent one opportunity per cup of coffee
customer, which would represent one opportunity per cup of coffee
Meaning Every chance for a process to deliver an output characteristic that is either “right” or

KEY TERMS USED IN SIX SIGMA (contd.)

KEY TERMS USED IN SIX SIGMA (contd.) EXPLANATION OF TERMS Frequently used terms in the Six

EXPLANATION OF TERMS

Frequently used terms in the Six Sigma process are:

Specification limits

Opportunity

Defect
Defect

Defective

Rolled Throughput Yield

(RTY))

Defects per Million

Opportunity (DPMO)

Meaning

Every result of an opportunity that does not meet customer specifications and

does not fall within Upper Specification Limit (USL) and Lower Specification

Limit (LSL)

Explanation with regard to the Java House coffee example

When a cup of coffee does not fall within the specified temperature limit

(<160F or >180F)

 
Meaning Every result of an opportunity that does not meet customer specifications and does not fall
Meaning Every result of an opportunity that does not meet customer specifications and does not fall
Meaning Every result of an opportunity that does not meet customer specifications and does not fall

KEY TERMS USED IN SIX SIGMA (contd.)

KEY TERMS USED IN SIX SIGMA (contd.) EXPLANATION OF TERMS Frequently used terms in the Six

EXPLANATION OF TERMS

Frequently used terms in the Six Sigma process are:

Specification limits

Opportunity

Defect
Defect

Defective

Rolled Throughput Yield

(RTY)

Defects per Million

Opportunity (DPMO)

Meaning

Results when the entire unit is identified has a nonconforming product

regardless of the number of defects observed

Explanation with regard to the Java House coffee example

Every cup of coffee fails to meet the customer requirements

Example: Temperature and taste

 
Meaning Results when the entire unit is identified has a nonconforming product regardless of the number
Meaning Results when the entire unit is identified has a nonconforming product regardless of the number
Meaning Results when the entire unit is identified has a nonconforming product regardless of the number

KEY TERMS USED IN SIX SIGMA (contd.)

KEY TERMS USED IN SIX SIGMA (contd.) EXPLANATION OF TERMS Frequently used terms in the Six

EXPLANATION OF TERMS

Frequently used terms in the Six Sigma process are:

Specification limits

Opportunity

Defect
Defect

Defective

Rolled Throughput Yield

(RTY)

Defects per Million

Opportunity (DPMO)

Meaning

Measure of process efficiency expressed and indicates percentage of units

that are defect free

Also referred to as Yield value

Explanation with regard to the Java House coffee example

The percentage of cups of coffee that meet customers expectations

Meaning Measure of process efficiency expressed and indicates percentage of units that are defect free Also
Meaning Measure of process efficiency expressed and indicates percentage of units that are defect free Also
Meaning Measure of process efficiency expressed and indicates percentage of units that are defect free Also

KEY TERMS USED IN SIX SIGMA (contd.)

KEY TERMS USED IN SIX SIGMA (contd.) EXPLANATION OF TERMS Frequently used terms in the Six

EXPLANATION OF TERMS

Frequently used terms in the Six Sigma process are:

Specification limits

Opportunity

Defect
Defect

Defective

Rolled Throughput Yield

(RTY)

Defects per Million

Opportunity (DPMO)

Meaning

Also known as Non-Conformities per Million Opportunities (NPMO), it is a

measure of process performance

 

Explanation with regard to the Java House coffee example

 

For 100 cups of coffee measured, the ratio of defects observed to total

number of opportunities is multiplied by one million.

 
Meaning Also known as Non-Conformities per Million Opportunities (NPMO), it is a measure of process performance
Meaning Also known as Non-Conformities per Million Opportunities (NPMO), it is a measure of process performance

DPMO=

Defects observed

total number of opportunities *1,000,000

DPMO= Defects observed total number of opportunities

SIGMA CONVERSION TABLE

SIGMA CONVERSION TABLE INDICATORS ON THE SIX SIGMA LEVELS The Six Sigma Level is a measure

INDICATORS ON THE SIX SIGMA LEVELS

The Six Sigma Level is a measure of performance for a business process or service.

Virtual perfection

Good
Good

Improvement needed

Sigma Level

DPMO

Yield/Accuracy (%)

6

3.4

99.99966%

5

230

99.977%

4

6,210

99.38%

3

66,800

93.32%

2

308,000

69.15%

1

690,000

30.85%

QUALITY MEASURES AND REAL WORLD IMPACT

QUALITY MEASURES AND REAL WORLD IMPACT PREDICTIONS BASED ON THE SIGMA LEVEL AND YIELD What would

PREDICTIONS BASED ON THE SIGMA LEVEL AND YIELD

What would be the consequence in the U.S. if a quality goal of 4.5 Sigma Level or 99.90% yield is accepted?

4.5 Sigma Level Or 99.90 Yield
4.5 Sigma
Level
Or
99.90 Yield

QUALITY MEASURES AND REAL WORLD IMPACT

QUALITY MEASURES AND REAL WORLD IMPACT PREDICTIONS BASED ON THE SIGMA LEVEL AND YIELD 1 hour

PREDICTIONS BASED ON THE SIGMA LEVEL AND YIELD

1 hour of unsafe drinking

2 unsafe plane landings per day

water every month

at O’Hare International Airport in

Chicago

QUALITY MEASURES AND REAL WORLD IMPACT PREDICTIONS BASED ON THE SIGMA LEVEL AND YIELD 1 hour

500 incorrect surgical

operations each week

50 new born babies dropped

at birth by doctors each day

16,000 pieces of mail lost

by the U.S. postal service

every hour

22,000 checks deducted

from the wrong bank

accounts each hour

32,000 missed heartbeats

per person, per year

Knowledge Check
Knowledge Check

Knowledge Check

KNOWLEDGE Customers have asked for products from an IT company to be delivered within two weeks.

KNOWLEDGE

Customers have asked for products from an IT company to be delivered within two weeks. In this case, a product delivery that takes longer than two weeks would be

CHECK

considered as:

  • a. An opportunity

  • b. A defect

  • c. A specification limit

  • d. Defective

KNOWLEDGE Customers have asked for products from an IT company to be delivered within two weeks.
KNOWLEDGE Customers have asked for products from an IT company to be delivered within two weeks.

KNOWLEDGE

Customers have asked for products from an IT company to be delivered within two weeks. In this case, a product delivery that takes longer than two weeks would be

CHECK

considered as:

  • a. An opportunity

  • b. A defect

  • c. A specification limit

  • d. Defective

KNOWLEDGE Customers have asked for products from an IT company to be delivered within two weeks.

The correct answer is.

d

Explanation: A product delivery is a unit that could be right or wrong.

 Meaning of Process  Six Sigma and the Business System  Structure of a Six
Meaning of Process
Six Sigma and the Business System
Structure of a Six Sigma Team

Lesson 1: Six Sigma and Organizational Goals

Topic 1.2: Goals and Six Sigma Projects

COMPONENTS OF A BUSINESS PROCESS

COMPONENTS OF A BUSINESS PROCESS MEANING OF A BUSINESS PROCESS A process is a series of

MEANING OF A BUSINESS PROCESS

A process is a series of steps designed to produce a product and/or service as required by the customer.

COMPONENTS OF A BUSINESS PROCESS MEANING OF A BUSINESS PROCESS A process is a series of
COMPONENTS OF A BUSINESS PROCESS MEANING OF A BUSINESS PROCESS A process is a series of
COMPONENTS OF A BUSINESS PROCESS MEANING OF A BUSINESS PROCESS A process is a series of

Feedback

$ Input (x)
$
Input (x)

Process f(x)

Output (y)
Output (y)

1

3 2
3
2

A process will have inputs (x) and delivers outputs (y). Therefore, y = f(x). Any change in the inputs causes change in the output

MEANING OF PROCESS

MEANING OF PROCESS COMPONENTS OF A BUSINESS PROCESS A process is a series of steps designed

COMPONENTS OF A BUSINESS PROCESS

A process is a series of steps designed to produce a product and/or service as required by the customer.

Feedback
Feedback
Input (x) Process f(x) Output (y)
Input (x)
Process f(x)
Output (y)
MEANING OF PROCESS COMPONENTS OF A BUSINESS PROCESS A process is a series of steps designed

Focussing on the inputs is like driving a car. It transforms organizations from a pattern of driving forward by looking in the rear view mirror to driving forward by looking ahead on the road.

SIX SIGMA AND THE BUSINESS SYSTEM

SIX SIGMA AND THE BUSINESS SYSTEM PURPOSE OF A BUSINESS SYSTEM DESIGN IN AN ORGANIZATION Business

PURPOSE OF A BUSINESS SYSTEM DESIGN IN AN ORGANIZATION

Business system design
Business
system
design
SIX SIGMA AND THE BUSINESS SYSTEM PURPOSE OF A BUSINESS SYSTEM DESIGN IN AN ORGANIZATION Business
1 2 Implement a process or a set of processes 5 3 4
1
2
Implement a process or a set of processes
5
3
4
SIX SIGMA AND THE BUSINESS SYSTEM PURPOSE OF A BUSINESS SYSTEM DESIGN IN AN ORGANIZATION Business
Process inputs must be at the right place and at the right time
Process inputs must be at the right place and at the
right time

SIX SIGMA AND THE BUSINESS SYSTEM (contd.)

SIX SIGMA AND THE BUSINESS SYSTEM (contd.) HOW SIX SIGMA IMPACTS A BUSINESS SYSTEM DESIGN A

HOW SIX SIGMA IMPACTS A BUSINESS SYSTEM DESIGN

A business system design: Six Sigma improves the business system by: ● ● Collects and analyzes
A business system design:
Six Sigma improves the
business system by:
Collects and analyzes data
to ensure continuous
improvement
Includes processes or
procedures
Continuously removing
defects in processes
Sustaining the changes

STRUCTURE OF A SIX SIGMA TEAM

STRUCTURE OF A SIX SIGMA TEAM LEVELS IN A SIX SIGMA TEAM Top executives Six Sigma

LEVELS IN A SIX SIGMA TEAM

Top executives Six Sigma champions Six Sigma Master Six Sigma Black Belts Black Belts (MBB) Six
Top
executives
Six Sigma
champions
Six Sigma
Master
Six Sigma
Black Belts
Black Belts
(MBB)
Six Sigma
(BB)
Green Belts
(GB)

STRUCTURE OF A SIX SIGMA TEAM (contd.)

STRUCTURE OF A SIX SIGMA TEAM (contd.) LEVELS IN A SIX SIGMA TEAM Top executives Six

LEVELS IN A SIX SIGMA TEAM

Top executives Six Sigma champions Six Sigma Master Six Sigma Black Belts Black Belts (MBB) Six
Top
executives
Six Sigma
champions
Six Sigma
Master
Six Sigma
Black Belts
Black Belts
(MBB)
Six Sigma
(BB)
Green Belts
(GB)

Six Sigma green belts support the black belts by working on the project and performing day-to-day

jobs.

STRUCTURE OF A SIX SIGMA TEAM (contd.)

STRUCTURE OF A SIX SIGMA TEAM (contd.) LEVELS IN A SIX SIGMA TEAM Top Executives Six

LEVELS IN A SIX SIGMA TEAM

Top Executives Six Sigma Champions Six Sigma Master Six Sigma Black Belts Black Belts (MBB) Six
Top
Executives
Six Sigma
Champions
Six Sigma
Master
Six Sigma
Black Belts
Black Belts
(MBB)
Six Sigma
(BB)
Green Belts
(GB)

Six Sigma black belts apply strategies to specific projects, and lead and direct teams to execute

projects.

STRUCTURE OF A SIX SIGMA TEAM (contd.)

STRUCTURE OF A SIX SIGMA TEAM (contd.) LEVELS IN A SIX SIGMA TEAM Top Executives Six

LEVELS IN A SIX SIGMA TEAM

Top Executives Six Sigma Champions Six Sigma Master Six Sigma Black Belts Black Belts (MBB) Six
Top
Executives
Six Sigma
Champions
Six Sigma
Master
Six Sigma
Black Belts
Black Belts
(MBB)
Six Sigma
(BB)
Green Belts
(GB)

Six Sigma master black belts train and coach black belts, green belts, and various functional

leaders of the organization.

STRUCTURE OF A SIX SIGMA TEAM (contd.)

STRUCTURE OF A SIX SIGMA TEAM (contd.) LEVELS IN A SIX SIGMA TEAM Top Executives Six

LEVELS IN A SIX SIGMA TEAM

Top Executives Six Sigma Champions Six Sigma Master Six Sigma Black Belts Black Belts (MBB) Six
Top
Executives
Six Sigma
Champions
Six Sigma
Master
Six Sigma
Black Belts
Black Belts
(MBB)
Six Sigma
(BB)
Green Belts
(GB)

Six Sigma Champions:

Identify and scope projects, and develop strategy

Identify and coach master black belts

STRUCTURE OF A SIX SIGMA TEAM (contd.)

STRUCTURE OF A SIX SIGMA TEAM (contd.) LEVELS IN A SIX SIGMA TEAM Top Executives Six

LEVELS IN A SIX SIGMA TEAM

Top Executives Six Sigma Champions Six Sigma Master Six Sigma Black Belts Black Belts (MBB) Six
Top
Executives
Six Sigma
Champions
Six Sigma
Master
Six Sigma
Black Belts
Black Belts
(MBB)
Six Sigma
(BB)
Green Belts
(GB)

Top Executives:

Lead change and provide direction

Own the Six Sigma initiatives

 Key Business Drivers  Balanced Scorecard (BSC) Framework  Development of a Balanced Scorecard 
Key Business Drivers
Balanced Scorecard (BSC) Framework
Development of a Balanced Scorecard
Four-Box Model of BSC vs. Strategy Map
Impact of the BSC to an Organization

Lesson 1: Six Sigma and Organizational Goals

Topic 1.3: Organizational Drivers and Metrics

KEY BUSINESS DRIVERS

KEY BUSINESS DRIVERS INTRODUCTION TO BALANCED SCORECARD (BSC) Financial accounting Physical assets 1 2 5 3

INTRODUCTION TO BALANCED SCORECARD (BSC)

Financial accounting

KEY BUSINESS DRIVERS INTRODUCTION TO BALANCED SCORECARD (BSC) Financial accounting Physical assets 1 2 5 3
KEY BUSINESS DRIVERS INTRODUCTION TO BALANCED SCORECARD (BSC) Financial accounting Physical assets 1 2 5 3

Physical assets

1 2 5 3 4
1
2
5
3
4

Internal processes

KEY BUSINESS DRIVERS INTRODUCTION TO BALANCED SCORECARD (BSC) Financial accounting Physical assets 1 2 5 3

Customer satisfaction

KEY BUSINESS DRIVERS INTRODUCTION TO BALANCED SCORECARD (BSC) Financial accounting Physical assets 1 2 5 3

Learning and growth

KEY BUSINESS DRIVERS INTRODUCTION TO BALANCED SCORECARD (BSC) Financial accounting Physical assets 1 2 5 3

BSC

BENEFITS OF BSC

BENEFITS OF BSC ADVANTAGES Actionable objectives Prioritizes projects and initiatives Internal Financials processes Integrates Customer Learning

ADVANTAGES

Actionable objectives
Actionable
objectives
BENEFITS OF BSC ADVANTAGES Actionable objectives Prioritizes projects and initiatives Internal Financials processes Integrates Customer Learning
Prioritizes projects and initiatives Internal Financials processes Integrates Customer Learning strategies satisfaction and growth
Prioritizes
projects and
initiatives
Internal
Financials
processes
Integrates
Customer
Learning
strategies
satisfaction
and growth

Framework for performance measurement

Clarifies vision and mission

BENEFITS OF BSC ADVANTAGES Actionable objectives Prioritizes projects and initiatives Internal Financials processes Integrates Customer Learning

Aids

continuous

improvement

BENEFITS OF BSC ADVANTAGES Actionable objectives Prioritizes projects and initiatives Internal Financials processes Integrates Customer Learning

Provides

feedback

KEY AREAS IN BSC

KEY AREAS IN BSC FOUR PERSPECTIVES IN BSC By using BSC, an organization maps its strategic

FOUR PERSPECTIVES IN BSC

By using BSC, an organization maps its strategic objectives to the specific metrics of performance.

Financial

Vision and Strategy
Vision
and
Strategy
KEY AREAS IN BSC FOUR PERSPECTIVES IN BSC By using BSC, an organization maps its strategic

Customer

KEY AREAS IN BSC FOUR PERSPECTIVES IN BSC By using BSC, an organization maps its strategic
KEY AREAS IN BSC FOUR PERSPECTIVES IN BSC By using BSC, an organization maps its strategic

Internal business

process

KEY AREAS IN BSC FOUR PERSPECTIVES IN BSC By using BSC, an organization maps its strategic

Learning and growth

KEY AREAS IN BSC (contd.)

KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION

Using the BSC, an organization maps its strategic objectives to specific metrics of performance.

Financial

Financial objectives

Tracking financial success

Vision and Strategy
Vision
and
Strategy

Learning and growth

KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an
KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

Customer

KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

Internal business

process

KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

KEY AREAS IN BSC (contd.)

KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION

Using the BSC, an organization maps its strategic objectives to specific metrics of performance.

Financial

Financial objectives

Tracking financial success

Vision and Strategy
Vision
and
Strategy
KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an
KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

Customer

KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

Internal business

process

Operational goals of internal processes

KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

Learning and growth

KEY AREAS IN BSC (contd.)

KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION

Using the BSC, an organization maps its strategic objectives to specific metrics of performance.

Financial

Financial objectives Tracking financial success

Vision and Strategy
Vision
and
Strategy
KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an
KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

Customer

KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

Internal business

process

Operational goals for internal processes

KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

Learning and growth

Intangible factors of success Learning from experience

KEY AREAS IN BSC (contd.)

KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION

Using the BSC, an organization maps its strategic objectives to specific metrics of performance.

Financial

Financial objectives Tracking financial success

Vision and Strategy
Vision
and
Strategy
KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an
KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

Customer

Customer-facing

objectives

KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

Internal business

process

Operational goals for internal processes

KEY AREAS IN BSC (contd.) FOUR PERSEPCTIVES BSC HANDLES IN AN ORGANIZATION Using the BSC, an

Learning and growth

Intangible factors of success Learning from experience

DEVELOPING A BSC

DEVELOPING A BSC DEVELOPMENT BASED ON EACH PERSPECTIVE Interactions between perspectives or business units are considered

DEVELOPMENT BASED ON EACH PERSPECTIVE

Interactions between perspectives or business units are considered to prevent uneven optimization.

Strategic

  • 1 Objectives

Long-term

organizational

goals

DEVELOPING A BSC DEVELOPMENT BASED ON EACH PERSPECTIVE Interactions between perspectives or business units are considered
  • 2 Measures

to achieve each

objective

DEVELOPING A BSC DEVELOPMENT BASED ON EACH PERSPECTIVE Interactions between perspectives or business units are considered
  • 3 Targets

for each

measure

DEVELOPING A BSC DEVELOPMENT BASED ON EACH PERSPECTIVE Interactions between perspectives or business units are considered
  • 4 Initiatives

to achieve each

target

Not every initiative identified should be worked as a Six Sigma project but some could be.

FOUR-BOX MODEL VS. STRATEGY MAPS

FOUR-BOX MODEL VS. STRATEGY MAPS NEW PERSPECTIVE OF THE BSC Alternatives to BSC Financial Increase Increase

NEW PERSPECTIVE OF THE BSC

Alternatives to BSC

Financial Increase Increase Financial Lower cost profitability revenue Improve Lower wait time customer Customer Vision retention
Financial
Increase
Increase
Financial
Lower cost
profitability
revenue
Improve
Lower wait time
customer
Customer
Vision
retention
and
Customer
Internal business
process
Strategy
Increase
Internal
process
Lower cycle
time
Process
efficiency
Learning and growth
Improve
Learning
and Growth
knowledge and
skills
Improve tools
and technology
Four-box model of BSC
Strategy maps

IMPACT TO THE ORGANIZATION

IMPACT TO THE ORGANIZATION HOW THE USE OF BSC STRATEGY MAPS AFFECT AN ORGANIZATION Needs Goals

HOW THE USE OF BSC STRATEGY MAPS AFFECT AN ORGANIZATION

Needs Goals Organization
Needs
Goals
Organization

IMPACT TO THE ORGANIZATION

IMPACT TO THE ORGANIZATION EFFECT OF BSC STRATEGY MAPS Timelines Personal goals Work goals Resources

EFFECT OF BSC STRATEGY MAPS

IMPACT TO THE ORGANIZATION EFFECT OF BSC STRATEGY MAPS Timelines Personal goals Work goals Resources

Timelines

Personal goals Work goals
Personal
goals
Work
goals
IMPACT TO THE ORGANIZATION EFFECT OF BSC STRATEGY MAPS Timelines Personal goals Work goals Resources

Resources

IMPACT TO THE ORGANIZATION (contd.)

IMPACT TO THE ORGANIZATION (contd.) HOW THE USE OF BSC STRATEGY MAPS AFFECT AN ORGANIZATION Cause

HOW THE USE OF BSC STRATEGY MAPS AFFECT AN ORGANIZATION

IMPACT TO THE ORGANIZATION (contd.) HOW THE USE OF BSC STRATEGY MAPS AFFECT AN ORGANIZATION Cause
Cause Effect
Cause
Effect
IMPACT TO THE ORGANIZATION (contd.) HOW THE USE OF BSC STRATEGY MAPS AFFECT AN ORGANIZATION Cause
BSC Strategy Maps
BSC
Strategy
Maps
IMPACT TO THE ORGANIZATION (contd.) HOW THE USE OF BSC STRATEGY MAPS AFFECT AN ORGANIZATION Cause

BENEFITS OF BSC STRATEGY MAPS

BENEFITS OF BSC STRATEGY MAPS The BSC enables the organization to improve in the following ways:

The BSC enables the organization to improve in the following ways:

Easy communication

Allows each business unit to work toward a common organizational goal

Transparent and meaningful communication of performance

BENEFITS OF BSC STRATEGY MAPS The BSC enables the organization to improve in the following ways:
BENEFITS OF BSC STRATEGY MAPS The BSC enables the organization to improve in the following ways:
BENEFITS OF BSC STRATEGY MAPS The BSC enables the organization to improve in the following ways:

Facilitates understanding at all levels of the organization

BENEFITS OF BSC STRATEGY MAPS The BSC enables the organization to improve in the following ways:
BENEFITS OF BSC STRATEGY MAPS The BSC enables the organization to improve in the following ways:

Better management of information in an organization

BENEFITS OF BSC STRATEGY MAPS The BSC enables the organization to improve in the following ways:

Effective creation of performance report against a balanced scorecard

KEY TAKEAWAYS Quality is defined as the degree of excellence of a product or service and
KEY TAKEAWAYS
Quality is defined as the degree of excellence of
a product or service and conformance to
customer requirements
Six Sigma is a business methodology that
employs a customer centric, fact-based
approach to reduce process variation and
waste
There are five phases in the DMAIC process—
Define, Measure, Analyze, Improve, and
Control
The five levels in the Six Sigma team are:
Stage For Animation
Six Sigma Green Belts, Six Sigma Black Belts,
Six Sigma Master Black Belts, Six Sigma
See example screen here
EXAMPLE 1
Champions, and Top Executives
EXAMPLE 2
Apart from financial accounting, the BSC also
considers internal processes, customer
satisfaction, and learning and growth
Strategy map depicts a chain of cause and
effect relationships between the perspectives
and the relationships that are represented by
interlinked objectives
Quiz
Quiz
Quiz
QUIZ 1 Which of the following phase is not included in the Six Sigma process? a.

QUIZ

 

1

Which of the following phase is not included in the Six Sigma process?

  • a. Define

  • b. Analyze

  • c. Control

  • d. Implement

QUIZ 1 Which of the following phase is not included in the Six Sigma process? a.
QUIZ 1 Which of the following phase is not included in the Six Sigma process? a.

QUIZ

 

1

Which of the following phase is not included in the Six Sigma process?

  • a. Define

  • b. Analyze

  • c. Control

  • d. Implement

QUIZ 1 Which of the following phase is not included in the Six Sigma process? a.

The correct answer is

.

_ d

Explanation: The Six Sigma Process is known as DMAIC, which consists of Define, Measure, Analyze, Improve, and Control.

QUIZ 2 What is a defect? a. When there is a limit to the customer specification

QUIZ

 

2

What is a defect?

  • a. When there is a limit to the customer specification

  • b. When an output meets the customer’s expectations

  • c. When an opportunity does not meet customer expectations

  • d. When there is a non-conforming part or unit

QUIZ 2 What is a defect? a. When there is a limit to the customer specification
QUIZ 2 What is a defect? a. When there is a limit to the customer specification

QUIZ

 

2

What is a defect?

  • a. When there is a limit to the customer specification

  • b. When an output meets the customer’s expectations

  • c. When an opportunity does not meet customer expectations

  • d. When there is a non-conforming part or unit

QUIZ 2 What is a defect? a. When there is a limit to the customer specification

The correct answer is

.

_ c

Explanation: A defect is defined as an opportunity that does not meet customer requirements or expectations.

QUIZ 3 Which of the following perspectives belong to the BSC approach? a. Customer, supplier, input,

QUIZ

 

3

Which of the following perspectives belong to the BSC approach?

  • a. Customer, supplier, input, and output

  • b. Process, people, technology, and policies

  • c. Financial, customer, internal processes, and learning and growth

QUIZ 3 Which of the following perspectives belong to the BSC approach? a. Customer, supplier, input,
  • d. Internal processes, customer, financial, and objectives

QUIZ 3 Which of the following perspectives belong to the BSC approach? a. Customer, supplier, input,

QUIZ

 

3

Which of the following perspectives belong to the BSC approach?

  • a. Customer, supplier, input, and output

  • b. Process, people, technology, and policies

  • c. Financial, customer, internal processes, and learning and growth

QUIZ 3 Which of the following perspectives belong to the BSC approach? a. Customer, supplier, input,
  • d. Internal processes, customer, financial, and objectives

The correct answer is

.

_

c

Explanation: The four perspectives in a Balanced Score Card are financial, customer, internal processes, and learning and growth.

This concludes Lesson 1.1: Six Sigma and Organizational Goals The next lesson is “Lean Principles in

This concludes Lesson 1.1: Six Sigma and Organizational Goals

The next lesson is “Lean Principles in the Organization.”

This concludes Lesson 1.1: Six Sigma and Organizational Goals The next lesson is “Lean Principles in
THANK YOU
THANK YOU