Small

IDEAS…

…HUGE
Dividends

Yellow Belt…

…an integrated approach to massification of

Six Sigma movement
What is QUALITY
Definition of QUALITY

Totality of features and

characteristics of a product or
service that bear on its ability to
satisfy the stated and implied needs
Why we need Quality System
Continuous
Customer Improvement
Confidence

Less Need For Quality

Nonconformity System

Competitiveness Optimum Resource

Utilisation
 Quality Evolution &
Six Sigma
Total optimization of Services ,Design
and development,
Production, and Sales Is necessary !!
“Six Sigma Management” Six Sigma
Focus “ Customer Satisfaction”

“Manufacturing Systems improvement”

Focus “Product Quality” TQM

QA

QC
“Production line focused Improvement”
Focus “Inspection”
What is Six Sigma all about ?

• Powerful methodology to improve business processes

• Customer focus ATTITUDE.

 View quality externally from the customer’s perspective

 Measure the same as the customer does

• DISCIPLINE to meet the customer expectations every time

• Linkage to company bottom line / ROI

 From Big Y to little y

Customer says: I just want a BIG Y

good cup of coffee! (CTS)

What are the attributes that make a cup of

big Y’s
coffee good? (CTQ)
taste……...hot……......portion……...appearance…..

Yummy What is the 16 oz Clean cups,

temperature? no floaters,
rich look...
little y’s
(CTP)
0.1 l
Flowdown from “Big Y” to “little x”

CTQ
CTP Measurable Input
Characteristic Input Controls
Characteristics Characteristics

Y y X x
• Taste • ppm coffee

• Temp • pH

• Portion • Taste Test Survey

• Appearance • Coffee Meister Result

Six Sigma Organization

Key Role Description

Senior most management – provide resources, remove bottlenecks, set

Sponsors priorities & give direction. Catalyze deployment

Senior management with responsibility for the success of the initiative.

Champion Own deployment & track the project, its people & output. Do periodic
monitoring.

Teachers, trainers, reviewers and mentors of the Black Belts. Identify

Master Black Belt opportunities to apply Six sigma & map business goals to projects.

Leaders of teams that employ the DMAIC or DMADV methodology –

Black Belt Full Time

Owners of projects that improve a process or product – Part Time

Green Belt

Key stakeholders, firm or supplier resources, assigned to a Six Sigma

Deployment Team project – Part/Full Time
members
Example of BB/GB/YB

VOC - capture d Project CTQ

P ayme nt To incre ase C SI fo r P ayme nt s BB

Payment posting within 24 hrs YB

Ti mely c redit of payment Reduction in Complaints in Payment posting YB GB
Correct amount posted in record YB
To reduce Bill Delivery TAT YB
Time given to pay the bil l Reduce RTO% YB GB
Reduce Complaints on BNR YB
Adequac y of loc ations at whic h To increase Drop in Boxes visibility YB
GB
payment c an be made Timely clearance of Drop in boxes YB
To increase multiple modes of payment YB
To enhance awareness of multiple modes of
Options available for mak ing payment YB
payments GB
e.g. Credit Card, Cheque, e- bi lling etc
Reduce TAT of payment posting through
YB
cheque

Scoping of the projects are very important

Business Imperatives

Reducing churn

Collection

C SAT

Customer Acquisition

Network Quality

Revenue Enhancement

Cycle Time Reduction

Lean & Six Sigma Models- DMAIC Approach

• Identify Customer &needs

Define • Defining Problem / Goal Charter &
• Forming Team CTQ Drill Down
MAKE THE CASE FOR ACTION
• Setting Milestone

Measure
• Mapping Process Activities Process Map
LEARN ABOUT THE “Y” • Identification of Wastes & VA/NVA

Analyze • Identification of 7 Wastes Reason

Lean – 7 Wastes
LEARN ABOUT THE “X’s”
• Listen to the voice of process

• Brain storm solution

Improve •Selection & Implementation
PROVE THE SOLUTION
Lean – 7 Wastes

Control • Validating Potential Failure Mistake

• Putting Control on process Proofing
SUSTAIN THE SOLUTION
Define
Project Charter
Project Title: Increase % of CAF submission within 7 days
Business Case (Benefit Analysis(Projected Savings): Specific Problem Statement:
CAF submission is XXX % and this results in the line getting What : What is the problem (in this case CAF submission
barred. This leads to revenue loss and customer within SLA is low)
dissatisfaction. When : Since when
This project aims at increasing the percentage of Where : (Business location)
submission of CAF within YY days from the First Call Date How : (What is the current state)
(FCD). This project will aim at preventing the dels getting
barred due to non submission of CAF

Opportunity Statement Specific Goal Statement:

Current Performance: (Situation as of now) To increase the % age of CAF submission from
_________% (As on ____month) to _____ % by
Cost savings INR : (Estimated Savings in MINR per ________ Month
annum if project goal is achieved)

Current Sigma level :

Project Scope In Scope:

Process: Define process (In this case CAF submission) The boundaries of the project , in which project
will focus
Start Point: What is the trigger point of the
process (In this case First Call made) Out of Scope:
Areas beyond project scope or not covered in
When the process will end (In this case CAF project
End Point: received and data entered in System)

Project Charter
 Define
Project Title: Increase % of CAF submission within XXX days
Business case:
Resource Plan Review Tollgate Review Dates
Project Lead: Review frequency Tollgate Date Signoff by
Sponsor: (xx/xx/xx) Champion
Champion: Once in a Week Define
Local Coach :
Team Members: Measure

Analyze
Review responsibility
Improve
Champion/Local Coach/BE Team
Control

Milestones Project Charter Sign-off:

:    
Team Leader:
Stages Start Date End date Local Coach:
Define QE Head:
Measure
Champion (Immediate Sup/Team Head):
Sponsor (Circle BU/ Fn Head):
Analyze
Improve
Control
Project Charter
Business Case

The business case describes the benefit for undertaking a project.

A business case addresses the following questions:

Does this project align with other business initiatives?

What is the focus for the project teams?

Where should the team’s work begin and end?

What impacts will this project have on other business units and employees?

What benefits will be derived from this project?

Has the value of the benefits been quantified?

Problem statement

The Problem statement usually answer questions:

What is the pain

Where is it hurting

When – is it current? How long it has been?

Problem Statement:

What is the extent of the pain “Our complaints have

increased drastically and
we need to improve it”

Better Problem Statement

“Customer complaints (what) this quarter (when) have
increased by 25% (extent) as compared with last quarter. This
will result in customer dissatisfaction & more no. of calls at
BPO (where) bring missed as well as adversely effect our new
acquisition (where) for our region.”
Opportunity statement

The opportunity statement describes the “why” of undertaking the improvement initiative.

The opportunity statement should address the following questions:

 What is wrong and not working?

 When and where do the problems occur?

 How extensive is the problem?

 What is the impact “pain” on our customers, business, and employees?

 Does it make strategic sense to address this problem?

Goal statement

What is the improvement team seeking to accomplish?

How will the improvement team’s success be measured?

What specific parameters will be measured?

What are the tangible, ”hard” results deliverables (e.g. reduce cost, cycle time, etc.) ?

What are the intangible,” soft” deliverables / results?

What is the timetable for delivery of results ?

“Reduce CAF rejections from 20% in Feb-07 to 10% by

31 May 2007”
“Reduce Customer Waiting Time from 15 mins. in Mar-07
to 10 mins. by 30 Apr 2007”
Project Scope

What is Project Scoping ?

The scoping of the project is done so as to get focus on critical characteristic of the process /

product. It includes where does the project start and stop – along with constraints and

assumptions.

It’s an attempt to define what will be covered in the project deliverables

Scoping sharpens the focus of the project team & sets the expectations right
Types of Scoping
Longitudinal Scoping :- Location , Area
Lateral Scoping :- Products , Function
Team - Assignment- Exercise 1

Select one project in team and prepare project charter.

Process Mapping
Let us understand……

Current process

Performance level of the process

Customer expectations

Gaps in the current process

Waste/NVA Reduction – Yellow Belt Approach

At least Three Versions

(Usually)

What You Think It Is... What It Actually Is... What You Would Like
It To Be...

Storage
Transportation

Operation Delay or
temporary Decision
Storage
Inspection
Start/ End Decision Box Delay Storage
Process Connector Document Flow Line
 Define

As-Is Process

Identify Gaps/NVA

A
N
N yyyy3 aaaaaaa A
xxxx yyyy1 yyyy2 data?

Y
Y
xxxxx

xxxx

A N
dddd
correc ddddd
N
t?

Y
xxxx yyyy
Y ddddd
 Define
As-Is Process
Identify Gaps/NVA
A
Retailer activating the
Cust walks in to any Reliance
line and collects Executive would visit the retailer
outlet and
Start the cash & issues Outlet on Day 3 or Day 4
gets the starter kit on Day 1
the application to collect the filled CAF
form to the customer

Distributor will check the Executive submits the CAFs

Backend team checks
for the quality of the CAF’s
logged in
Courier delivers the
CAF quality collected at the distributor
CAF on Day 5 to the
& sends the CAF to the point
Back end
backend team for Order entry
thru courier on Day 4

Forms logged in would be

Order Entry is completed CAF’s are scanned
couriered to DAKC Final quality check
on the same day and stored
for scanning will happen at the
and storage back end

Line would be Outgoing would be SMS sent to the customer

Y CAF
activated & customer barred on the 7th day on the 5th day regarding
submitted
details would be CAF submission
entered
N

Line would be
blocked on 10tth
day

A
Distributor’s loses
End His commission
Value Added & Non Value Added Activities

Defining
Value Added
&
Non Value Added Activities
Value Added(VA) Activities
Task which add function,features to the service offered or to the organization

Task which enables competitive advantage for

Reduced price
Fasters delivery
Providing service delighters

Customer sees the value of that activity being bundled in the service
Willing to pay
Will be happy to know we are doing that activity to enable his service

Value added activity also enables the CTQ of the process (stated purpose)

Note :-
All activities related to Law, Regulatory Authorities, Financial Reporting,
Government Policies take as given will be considered as Operational
Value Enabling Activities.
Efforts must be eliminate/at least reduce the cost.
Non Value Added(NVA) Activities

Task which do not add any value to customer nor it is paid. It is sheer waste and
efforts must be to eliminate it or at least to reduce it if elimination is difficult / not
possible to begin with .

 Rework
 Inspection / Re-inspections
 Excess controls viz. multilayer approvals Charter of authority
 Counting / Sorting
 Transportation & Handling delays
 Inspection or Reviewing
 Setup or Downtime
 Holding or Delaying in Bins
 Correction for errors
 Defective services
 Attending customer grievances related to services
 Waiting to process the delivery to customer
 Waiting for information from some other function / process……and so on……….
Linking Value Analysis With Process Flow

Activity Customer Operational Non

Value-Added Value-Added Value- Added

Transfer all the Process mapping steps to “Activity” column here.

The Sea of Waste

Sea of Inefficiencies / Errors - COST OF QUALITY

Total Cost of Quality

(15-25% of Sales)
As a company gains a broader definition of poor quality,
the hidden portion of the iceberg becomes apparent

Traditional Cost of Quality

- NON CONFORMANCE WASTE
CUSTOMER RETURNS

(4-5% of Sales) REWORK

TESTING COSTS
INSPECTION COSTS

QC DEPT. EXPENSES
REJECTS

When quality costs are initially determined, the categories

EXCESSIVE OVERTIME
included are the visible ones as depicted in the iceberg below:
LATE PAPERWORK
PRICING OR PREMIUM FREIGHT COSTS
BILLING ERRORS
CUSTOMER ALLOWANCES
CUSTOMER RETURNS LACK OF FOLLOW-UP
WASTE EXCESSIVE FIELD ON CURRENT PROGRAMS
SERVICE EXPENSES INCORRECTLY COMPLETED
REWORK INSPECTION COST
EXCESS INVENTORY
TESTING COSTS SALES ORDER
QC DEPT. EXPENSES EXCESSIVE LOSS OF
REJECTS EMPLOYEE TURNOVER MARKET SHARE LACK OF
COMPETITIVE KNOWLEDGE
FAILURE TO RETURN EXPEDITING COSTS
CUSTOMER CALL EXCESSIVE SYSTEMS COSTS
COMPLAINT HANDLING
OVERDUE RECEIVABLES
LACK OF PLANNING
ELIMINATING THE WASTES… …

Value
added
 Defects in service
 Overproduction
5%
 Waiting
 Non-utilized
people
 Transportation
 Inventory
 Motion
Non-value  Extra
added processing…
 Reinventing the
wheel

IF IT DOESN’T ADD VALUE, IT’S WASTE….

SCENES IN ORGANIZATION WASTE - Defects in service

RE-RAISE
ERROR IN BILL FAULTS
WRONG
NON-DELIVERY
UPDATION OF
OF BILLS
PAYMENTS

WRONG LOGGING
WRONG COMMITMENT BY
SALES

NON- ACQUIRING OF
COMPLIANCE WRONG
OF SLAs CUSTOMERS

OVER SELLING
SCENES IN ORGANIZATION WASTE - Overproduction

TOO MANY VISITS TOO MANY PROMOS

TO CUSTOMERS

combo Plan
TOO MANY SCHEMES
Friends &
Family

VAS
SERVICES

TOO MANY
CALLS TO
CUSTOMERS
SCENES IN ORGANIZATION WASTE - Waiting

SUBMISSION OF
DOCUMENTS

RECTIFICATION
OF TAGS

AV/CV REPORT WORK ORDER CREATION

DIGGING FOR RFS-

21 CASES
SCENES IN ORGANIZATION WASTE - Non-utilized people

ACQUIRING
WRONG MORE VISITS TO
CUSTOMERS RETAIN
CUSTOMERS

Low ARPU,
Defaulter

RETENTION OF LOW ARPU UNPRODUCTIVE

CUSTOMERS MAINTENANCE
SCENES IN ORGANIZATION WASTE - Transportation

MOVEMENT
LOCATION OF DROP
OF CAF BOXES

MOVEMENT OF
CUSTOMER COMPLAINTS

REFUND CHEQUE
SCENES IN ORGANIZATION WASTE - Inventory

SWITCH ELEMENTS/
INCOMPLETE
FEATURES
CAFs

UN-UTILIZED/ UNDER-
UTILIZED NETWORK

EXCESS TAGS
TELEPHONE
INSTRUMENTS

Sales related
Pendency
SCENES IN ORGANIZATION WASTE - Motion

SO CREATION
SUB-OPTIMAL
PERFORMANCE OF FLOWS

COMPLEX WORKFLOWS
SCENES IN ORGANIZATION WASTE - Extra processing…

REJECTION DUE INCOMPLE CAF

TO NETWORK PROCESSING

CV REJECTION
SCENES IN ORGANIZATION WASTE - Reinventing the wheel

NON-SHARING LOW FOCUS ON

EXTERNAL
LOW FOCUS ON
OF KNOWLEDGE
LEARNINGS/
EXTERNAL LEARNINGS/
BENCHMARKING
BENCHMARKING

LOW NETWORKING LOW REPLICATION

AMONG K- RATE
COMMUNITY
Summary of Define phase

Project charter

Process Mapping

VA,VE & NVA Activities

7 Types Of Waste

Quick win
Exercise -2

Divide the Group in teams and develop a As Is Map of

any process (as chosen by the Group) .

The group also needs to find Value added / Non value

added in the As Is Process map and at least two

nos of Quick win opportunities

Measure
Identification of CTQ
Critical To Quality (CTQ)

CTQs are the key measurable characteristics of a product or process

CTQ performance standards, or specification limits, must be met in order

to satisfy the customer.

“I consistently wait too long to speak to a representative”

The impacted CTQ for the above statement should be

“% call on hold beyond the SLA”

Identification
Define
of Sub CTQs and their operational definition

Operational Definition

No Of CAF with incomplete document *100

CTQ1 Total CAF Received
%CAF with incomplete documents

No Of CAF with incomplete details *100

CTQ CTQ2 Total CAF Received
%CAF Submitted within SLA %CAF with incomplete details

No Of CAF submitted within 7 days *100

Total activations

CTQ3 No Of CAF not remitted at Reliance *100

% of lines barred due to CAF not Total CAF Received
remitted
Operational
Definition
Operational Definition :-

It is precise definition of criteria for measurement of data..

The following things must be clearly defined

Data Source & Location

Sample Size

Who will collect data

What to measure

When will the data be collected

How will the data be collected.

Operational
Definition
Operational Definition is required

-To create common understanding among people

- Consistency and Reliability of data

- Scope of measurement

Example Of Operational Definition:-

Flight Take Off Time:-

When the flight doors are closed and Captain announces ”Flight Ready To Take Off”

Setting of proper measurement system is key to the success of the projects

 Define
Present performance level

Sigma Calculator Sigma table

N ( sample size)
No of Defects
Opportunity
DPMO
Sigma
Summary Of Measure Phase

• CTQ

• Sub CTQ

• Operational Definition

• Process Sigma Level

Exercise -3

Total nos Rejected due

Following is the summary of CAF as Defect type in CAF to the defect in Month
Oct 2007
rejected from a total of 5000 nos
Incomplete address 40
in Oct 2007 on account of defects
Address proof not
attached 10
as listed in the table .
Wrong entry of Name 25

Wrong Gender indicated 8

Calculate the Sigma Level for the Wrong Tariff Plan 12

data based on DPMO Methodology Wrong Billing address 2

Cheque details not legible 5

Analyze
Introduction to 7 QC tools
7 QC
Tools Tool Deals
QC Tool Description Of Tool
With
Pareto To pick up the important few
Numbers
Diagram problems from the trivial many
To see distribution pattern
Histogram Numbers
compared against standard values
To collect data in simple manner to Numbers, Y/N,
Check Sheet
prevent omitting the checks True/False
To put the data in visual & easily
Graph Numbers
understandable manner
Cause &
To recognize the factors which are
Effect Ideas
influencing the problem
Diagram
Scatter To see the relation between two
Numbers
Diagram sets of data.
Control To see the process is under stable
Numbers
Charts condition .
Pareto
Diagram
Pareto Chart – Tool used to identify and prioritize the key elements responsible for causing a problem.

1. 80/20 Principle
2. 80% of the causes are contributed by 20% of the factors
3. Helps to prioritize which factor to focus on
Histogram

A histogram is used to graphically summarize and display the distribution of a

process data set. It is a vertical block having class intervals in x-axis. This graph has
no spaces between the blocks.

Spending per Student in some school

IfIfyou
youcan
candivide
divideyour
yourdata
datainto
into
the class intervals (continuous)
the class intervals (continuous)
than
thanhistogram
histogramshould
shouldbe beused
used
else Pareto Chart is suitable.
else Pareto Chart is suitable.
Check Sheet

Check sheet are used to gather data on a specific information needed

The data from the several check sheets can be organized in to Pareto chart for
final analysis
IIII I
Defect Tally Total
IIII IIII II
Wrong Name 6
IIII IIII
Wrong Billing Address 12
IIII III
Wrong Tariff Plan 10

Wrong Bank Details 8

Total Defects 36
Total CAF Checked 72
Defects/CAF 2
Trend Charts

Trend Chart Of Projects Completion

Bar Charts

Bar Chart Of Target & Actual Sales

Pie Chart

Used for discrete data when one has the frequency of occurrences for a
given category
Analyze
Cause & Effect Diagram
Visual tool to brainstorm the probable causes for a particular effect to occur
The final answer that you may get could be a root cause
Method People

ItItisisnot
notcritical
criticalunder
under
which
which categoryaa
category
[particular
[particularcause
causefalls
fallsbut
but
isismore
more importanttotoarrive
important arrive
Machine Material Environment atataagroup
groupconsensus
consensusforfor
the
the categoryininwhich
category whichthethe
cause falls
cause falls
Analyze
Cause & Effect Matrix

Y1 Y2 Y3 Yn Output Indicator
10 8 7 … Importance
Causes from
C&E diagram

X1 0 3 9 87

X2 3 9 3 51

X3 9 9 3 183

X4 0 3 3 45

X5 0 3 9 87

Scale : 0 = None, 1= Low, 3= Moderate, 9= Strong

Note:Add output from Team Charter to Y. Circle those X’s that are prioritized. C&E Matrix
Scatter Diagram
– Scatter diagram shows whether or not there exist an relationship between
the two variables.

Strong positive correlation Strong negative correlation No correlation

Weak positive correlation Weak negative correlation

Control Charts

A control chart serves two vital purposes as a data-gathering tool; it shows

when a process is being influenced by special causes, creating an out-of-
control condition, and it tells how a process behaves over time.

Used
Usedtotomonitor
monitorthe
the
quality conformance
quality conformance
to
tostated
statedstandards
standards
Exercise -4
Following is the summary of CAF as rejected from a

total of 5000 nos in Oct 2007 on account of Total nos Rejected

Defect type in CAF due to the defect in
defects as listed in the table .
Month Oct 2007

Prepare a Pareto Chart with this data and evaluate Incomplete address 40
defect types contributing to 80 % of CAF rejections Address proof not
attached 10

Wrong entry of Name 25

Wrong Gender
Develop a Fish Bone Diagram for CAF rejection
Indicated 8
identifying Potential areas leading to CAF rejections

(Team Exercise)
Wrong Tariff Plan 12

Wrong Billing address 2

Cheque details not
legible 5
Improve
Analyze

5 Why Analysis for Root Cause

Validated Why1 Why2 Why3 Why4 Why5 Actionable
Root
Cause
Improve

Generate Solutions
Rank & Select Solution

Impact on Project CTQ – Effect the solution will have on the goal statement

Time Impact – time required to implement the solution

Cost-Benefit Impact – financial impacts associated with each solution

Other Impacts – special items that the organization wants to keep visible

during the solution making process

Improve

Rank & Select Solution

Identify all root Impact Time Cost Other Evaluation criteria

cause here. on goal Impact Benefi Impact
t
Impact
10 8 7 … Importance
Solutions

Solution 1 1 5 9

Solution 2 3 7 3

Solution 3 9 8 3

Solution 4 6 2 3

Solution 5 4 3 9

Scale : To use 1-10 for relation & not 0,1,3,9 scale

Piloting Solution

Why Pilot?

Pilot reduces risk of failure by identifying potential failure points

Increase organization buy-in.

Validate and refine cost and benefit estimates

Perform adjustments and observe solution implication

Improve

Development & Execution of Pilot Plan

Root Action Pilot Pilot date Responsi Result Mass
Cause Plan location bility Verification Implmnt

X1 Y1 L1 Dd/mm/yy abc Ok/Not OK Yes/No

Proposed New Process

A
N
N yyyy3 aaaaaaa
xxxx yyyy1 yyyy2 A
data?

Y
Y
xxxxx

xxxx

A N
dddd
N correc ddddd
t?

Y
xxxx yyyy
Y ddddd

Detailed Process Map for chosen solution

Control
CTQ Trend

Show CTQ trend graphically

Control Plan

S.No Issue / Root Improveme Status Control Frequen Resp

. Problem cause nt Plan cy
identifie suggested
d
Control

Before & After improvement

Before After
(which Month) (which Month)
CTQ

Sigma

Annual Cost Savings INR

Start Date

Note: Financial Controller or Accountant must certify savings.

Project completion criteria

Requirements for project completion

Successful completion of Projects

Results demonstrated & Validated – By Process Owner, Circle

Finance Head & Functional Head

Project Closure Approval by Circle Head / Business Head

Project approved by Head- Quality Excellence

Project Closure Report (PCR) signed off

Project Closure Report
Project Name :
Processes No. of Process No. of Process
Changed automated
65.10%
65.00%

64.00%
64.17%
Mistake-
63.00%

62.00%
proofing
61.00% 60.39%
60.00%

59.00%
No. of No. of Knowledge
CTQ Trend 58.00% Target Best Practice sharing sessions
57.00%
56.12%
Knowledge
56.00%

55.00%
55.43%
sharing
54.00% 53.57%
52.99%
53.00% 52.48%

52.00% 51.56%

51.00%

50.00%
Team Members, who worked on the project
POD Sep'04 Oct'04 Nov'04 Dec'04 Jan'05 Feb'05 Mar'05 Aprl'05
1.
2.
Financial
Impact: Rs. ….. Lacs p.a. 3.

Project Process Business Champion Regional BU Finance Head – Sponsor Head –

Leader Owner - Excellence - (Immediate Head Circle / (Circle BU/ Fn Quality
Circle Circle Supervisor / Team Corporate Head) Excellence
Head)
Sign

Name
Date
 R&R Project completion and closure with financial sign off
Project Selection

Team Member Selection

Project Review Process

Champion, Local Coach, Sponsor Approval

Project Initiation – DMAIC Process

Yellow Belt Project
End To End Process
Charter sign off & Registration
Thanks