Six Sigma Yellow Belt

Dr. M. Kamran Zaman

Improve

Develop Process maps and High level plan

Evaluate the Pilot Solution

Analyze Measure Improve Control Define

Develop Potential

Solutions Pilot Solution Implement

Final Solution

Identify vital X’s

Develop Solutions

Regression analysis

Determine Improvement Impacts/Benefits

The most important phase is Improve phase,

because this phase focus on reducing the amount

of variation found in a process.

Improve

The sole purpose of the Improve phase is to

demonstrate, with fact and data, that your

solutions solve the problem. Your organization

will make changes in a process that will eliminate

the defects, waste, and unnecessary costs that are

linked to the customer need identified during the

Define phase.

Improve

Improve: Implement and Check

• Implement preferred solution.

• Verify effectiveness by checking current performance against original

baselines.

• Apply statistical comparative methods if necessary.

Before Pareto Chart After Pareto Chart

Solution Identification

This step may be broken into three steps

• Ideas generation

• Solution design

• Pilot solution

REFINE, EVALUATE AND SELECT

Focus And Select Vital Few Causes

Generate Ideas (“Inputs” For Solutions)

Synthesize Ideas (Build Potential Solutions)

Pilot (Select Best Solution)

F I L T E R

ANALYZE

IMPROVE

Develop Solution “Proposal”

BRAINSTORM

Generate And Select Solutions

Ideas Generation

• Vital X’s – prioritized.

• Tolerance – Based on the transfer function we know

how much variation we can allow for each of the X’s.

• Ideas Generation.

Solution Design

Selecting the best Idea

All the ideas and best practices should be than ranked based on

following factors in the same priority:

• Impact on Y

• Resource Requirement for implementation

Select ideas which would have maximum impact on Y and

minimum resource requirement

A solution could be:

• One solution

• Set of solution, addressing different X’s or supplementing each

other

Transfer Function

The goal of improve is to develop a solution using

the transfer function

Y = {X1, X2, X3…Xn}

The transfer function:

• Relates the vital X’s to the project Y

• Predicts the effect and direction of changes on Y

due to changes in X’s

• Helps in fitting a solution which maximizes the

effect on Y using all or few of the X’s

Regression Analysis

Regression analysis is a statistical forecasting

model that describes and evaluates the relationship

between a given variable, usually called the

dependent variable, and one or more other

variables, usually known as the independent

variables.

Regression analysis models are used to help us

predict the value of one variable compared to one

or more other variables whose values can be

predetermined.

A Test of all or part of a proposed solution on a

small scale in order to better understand its

effects and to learn about how to make the full-

scale Implementation more effective

What Is A Pilot?

Pilot Solution – Proof of concept

It is important to prove that a hypothetical solution actually delivers what is

expected. Helps surface challenges in full scale implementation

The objective of running a pilot is to:

• Analyze the effects of your solution on the process and plan for a

successful full scale implementation.

• Establish that the solution would achieve what is desired.

• It is the proof of concept and can help in getting buy in from project

champion for resource mobilization required for full scale implementation.

• To identify if there would be any challenges in full scale implementation of

solution

Why Pilot?

Improved Solution

Improved Implementation

Lower Risk of failure

Confirms expected results and relationships

Improves ability to better predict Cost Savings

Increased Opportunity for feedback

Get early version of a Solution - Quickly to a particular

segment

Implementation requires introducing change to the

people who will make it work.

Implementing a change in operations should always

include:

• Clear plan

• Change management details

• Change may also requires

• Written procedures

• Training

• New equipment, materials and supplies

• Changes in staffing

• Changes in responsibility for certain positions

Implementation

• Assure solution costs and timelines are acceptable to management

• Determine the complexity of each solution in terms of time and ease of completion

• Identify potential impact (change to the baseline) of each solution. Explain how each solution will address the root cause and impact real change in performance.

• Financial benefit = benefit of solution – cost to implement

• Assess the risks associated with each solution and the likelihood of occurrence

• Determine need to involve/notify customer concerning any product or process changes

• Make sure that proper validation occurs associated with the solution prior to across the board implementation

Evaluate Cost, Complexity, Impact,

Benefit and Risk for Each Solution

Investments Required

Direct Costs

Indirect Costs

Benefits

Quality Improvements

Cost Reductions

Cost Avoidance

Cost Benefit Analysis

Consider Solutions That Remove Process

Waste Seven muda:

1. Over production ahead of demand

2. Waiting for the next process step or information

3. Transporting materials unnecessarily

4. Over processing

5. Inventory that is more than bare minimum

6. Motion by employees that is unnecessarily

7. Producing non-conforming parts

For each area of waste, examine each process step to determine if waste

occurs in the operation and how to remove the waste from the

production system

Forms of Waste

• Waste – absorb resources but creates no value.

• First step towards waste reduction is waste

identification.

• Majority of six sigma projects focus on one or

more of these areas.

Correction

or defects are as obvious as they sound.

Examples are:

Incorrect data entry

Paying the wrong vendor

Misspelled words in

communications

Making bad product

Materials or labor

discarded during

production

Eliminate erors!! Waste of Correction includes the waste of handling

and fixing mistakes. This is common in both

manufacturing and transactional settings.

Overproduction Producing more than the next step needs or more than the customer

buys.

– It may be the worst form of waste because it contributes to all the

others.

Examples are:

Preparing extra reports

Reports not acted upon or even read

Multiple copies in data storage

Over-ordering materials

Duplication of effort/reports

Waste of Overproduction relates to the excessive

accumulation of work-in-process (WIP) or finished

goods inventory.

Over processing

is tasks, activities and materials that don’t add

value. – Can be caused by poor product or tool design as well as from not understanding

what the customer wants.

Examples are:

Sign-offs

Reports that contain more

information than the

customer wants or needs

Communications, reports,

emails, contracts, etc that

contain more than the

necessary points (briefer is

better)

Voice mails that are too

long

Waste of Over processing relates to over-processing

anything that may not be adding value in the eyes of

the customer.

Conveyance is the unnecessary movement of material and

goods. – Steps in a process should be located close to each other so movement is

minimized.

Examples are:

Extra steps in the process

Distance traveled

Moving paper from place

to place

Inventory

is the liability of materials that are bought, invested in

and not immediately sold or used.

Examples are:

Transactions not

processed

Over-ordering materials

Waste of Inventory is identical to overproduction except

that it refers to the waste of acquiring raw material before

the exact moment that it is needed.

Motion

is the unnecessary movement of people

and equipment. – This includes looking for things like documents or parts as well as

movement that is straining.

Examples are:

Extra steps

Extra data entry

Having to look for

something

Waste of Motion examines how people move to ensure

that value is added.

Waiting

is nonproductive time due to lack of material,

people, or equipment. – Can be due to slow or broken machines, material not arriving on time, etc.

Examples are:

Processing once each

month instead of as the

work comes in

Showing up on time for a

meeting that starts late

Delayed work due to lack

of communication from

another internal group

Waste of Waiting is the cost of an idle resource.

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5S – The Basics

5S is a process designed to organize the workplace, keep it neat and clean, maintain standardized conditions and instill the discipline required to enable each individual to achieve and maintain a world class work environment.

• Seiri - Put things in order

• Seiton - Proper Arrangement

• Seiso – Clean

• Seiketsu – Purity

• Shitsuke - Commitment

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English Translation There have been many attempts to force five English “S” words to maintain the original

intent of 5S from Japanese. Listed below are typical English words used to translate:

1.) Sort (Seiri)

2.) Straighten or Systematically Arrange (Seiton)

3.) Shine or Spic and Span (Seiso)

4.) Standardize (Seiketsu)

5.) Sustain or Self-Discipline (Shitsuke)

5 S Sort

Identify necessary items and

remove unnecessary ones, use

time management.

Shine

Visual sweep of areas,

eliminate dirt, dust and

scrap. Make workplace

shine.

Place things in such a

way that they can be

easily reached whenever

they are needed.

Straighten

Make 5S strong in

habit. Make problems

appear and solve them.

Self-Discipline Standardize

Work to standards,

maintain standards, wear

safety equipment.

5 S

Benefits of the 5 S

Improve safety and communication

Reduce space requirements

Increase compliance with processes and procedures

Boost morale by creating a pleasant workplace

Reduce time wasted looking for tools and equipment

Some more sources of Waste

• Waste of untapped human potential.

• Waste of inappropriate systems

• Wasted energy and water

• Wasted materials

• Waste of customer time

• Waste of defecting customers

Kaizen

Kaizen is often translated in the West as ongoing,

continuous improvement. Some authors explain

Japan's competitive success in the world market

place as the result of the implementation of the

Kaizen concept in Japanese corporations. In

contrast to the usual emphasis on revolutionary,

innovative change on an occasional basis, Kaizen

looks for uninterrupted, ongoing incremental

change. In other words, there is always room for

improvement and continuously trying to become

better.

In practice, Kaizen can be implemented in corporations by improving every aspect of a business process in a step-by-step approach, while gradually developing employee skills through training and increased involvement. Principles in Kaizen implementation are:

1. Human resources are the most important company asset.

2. Processes must evolve by gradual improvement rather than radical changes.

3. Improvement must be based on statistical/quantitative evaluation of process performance.

In Improve , you can take corrective action to reduce or eliminate the

negative effects of the identified vital few factors.

This is where Managers, BBs and project teams get the positive

results of their careful investigation and quantification of Process

mapping.

Improve - Summary

Involve the Champion, Discuss with Management

Once the team has completed

their work it is now time to

review solutions with

Management. Allow the

team to benefit from a fresh

perspective and add

Management’s insight and

experience to the priorities.

This step improves the

alignment of Management to

the Teams efforts

Evaluate Improvements in Series

Implement one solution at a time. Allow for

sufficient time to determine effect, then move to

next solution.

(miss, no change) (hit, improvement)

Installed New Process Equipment

DPU

Retrained the Workforce on the Process

Control

Sustenance of Process improvement

Analyze Measure Improve Control Define

Determine Final

Process Capability

Implement

Process Control Project Closure

Validate Measurement system of X’s

Establish Final Process Capability

Project Sign-off and Documentation

Implemented Solution

Why Control?

Holding The Gain

Not Holding The Gain

Impro

vem

ent

Time

To make sure that our process stays in control after

the solution has been implemented

To quickly detect the out-of-control state and

determine the associated special causes so that

appropriate actions can be taken to correct the

problem before non-conformances are produced, or

to incorporate improvements based on the special

cause

Control - Objectives

How to Control?

• By keeping the X’s within tolerance by using

appropriate Control tools. (Mistake proofing, etc.).

• By applying Control charts to X’s to monitor and

Control the variation.

• By understanding implications on existing Quality

plans due to modification of current Control systems.

• By establishing Transition plan for maintaining

Control of improved Process.

Control

What is a Process Control system?

• A strategy for maintaining the improved Process performance over

time, and which identifies specific actions and tools required for

sustaining the Process improvements.

Why is Process Control system Important?

• It defines the actions, resources and responsibilities needed to

make sure the problem remains corrected and the benefits from the

solution continue to be realized

• It also provides the methods and tools needed to maintain the

Process improvement, independent of the current team

Define Sustaining Requirements

Now that the solution is known and you are ready to finish the project….

• Determine the activities that need to continue after the team is dissolved

• Define who is doing them now… who should be the long term owner?

• Determine who needs to do them in a sustaining long term mode

• Define the set of tasks or systems that must be installed prior to completing

the project and backing out of the work

• What else will be needed to make the solution effective and sustainable?

What Vacuum will be created when you leave?

Realize the Benefits of Improvement

How did you justify the cost savings for the project?

What changes will have to occur to create the savings?

Based on the impact of the benefits of the solution

have you made changes to the process to realize the

benefits?

Possible Actions:

Re-deploy personnel

Reorganize the floor

Reduce inventory levels in Planning System

Eliminate inspection or test operations

Modify Vendor/Customer contracts

Other cost saving changes to the operation

Close the Project

• The goals have been met and the team has been successful

• The solutions have all been implemented and demonstrated to be effective

• Assure all documentation is complete

• Determine what standardization opportunities are available

• Make sure the accomplishments of the individual or team are appropriately

recognized personally and publicly

• Measure and communicate results of the project (benefits and savings)

• Celebrate! We did it!

Control - Summary

In Control , you ‘sustain the gain’, focusing on maintaining the

improvements you’ve made to your Processes. It establishes the

roadmap for future productivity, for monitoring and ensuring that

your changes are consistent and permanent.

The DMAIC Team Based Problem Solving Process

uses a suite of tools, applied within a structured

framework to support the problem solving process

using teams.

Current Leadership Challenges

• Delighting Customers.

• Reducing Cycle Times.

• Keeping up with Technology Advances.

• Retaining People.

• Reducing Costs.

• Responding More Quickly.

• Structuring for Flexibility.

• Growing Overseas Markets.

Six Sigma— Benefits

• Generated sustained success

• Project selection tied to organizational strategy

– Customer focused

– Profits

• Project outcomes / benefits tied to financial reporting system.

• Recognition and reward system established to provide motivation.

Management Involvement

Executives and upper management drive the effort

through:

– Understanding Six Sigma

– Significant financial commitments

– Actively selecting projects tied to strategy

– Setting up formal review process

– Selecting Champions

– Determining strategic measures

Key issues for Leadership:

How will leadership organize to support Six Sigma ? (6 council, Director 6 , etc)

Transition rate to achieve 6 .

Level of resource commitment.

Centralized or decentralized approach.

Integration with current initiatives e.g. QMS

How will the progress be monitored?

Management Involvement

Critical Elements

• Genuine Focus on the Customer

• Data and Fact Driven Management

• Process Focus

• Proactive management

• Boundary-less Collaboration

• Drive for Perfection; Tolerance for failure

Types of Savings

Hard Savings:

Cost Reduction

Energy Saving

Raw Material saving

Reduced Rejection, Waste, Repair

Revenue Enhancement

Increased production

Yield Improvement

Quality Improvement

Hard Savings:

Cash flow improvement Reduced cash tied up in inventory

Reduced late receivables, early payables

Reduced cycle time

Cost and Capital avoidance Optimizing the current system / resources

Reduced maintenance costs

Types of Savings

Soft Savings:

Customer Satisfaction / Loyalty

Employee Satisfaction

Types of Savings

Cost of implementing

Direct Payroll

Full time (Black Belts, Master Black Belts)

Indirect Payroll

Time by executives, team members, data collection

Training and Consulting

Black Belt course, Overview for Movement etc.

Improvement Implementation Costs

Installing new solution, IT driven solutions etc.

What Qualifies as a Six Sigma

Project

Three basic qualifications:

-There is a gap between current and desired / needed performance.

The cause of problem is not clearly understood.

The solution is not pre-determined, nor is the optimal solution apparent.

For a breakthrough to occur… everything is

on the table

Way forward

Get Started

Even poor usage of these tools will get results

Learn more about Six Sigma

DMAIC - simplified

• Define

– What is important?

• Measure

– How are we doing?

• Analyze

– What is wrong?

• Improve

– Fix what’s wrong

• Control

– Ensure gains are maintained to

guarantee performance

Approach

Practical Problem

Statistical Problem

Statistical Solution

Practical Solution

DMAIC approach

D Define

M Measure

A Analyze

I Improve

C Control

Identify and state the practical problem

Validate the practical problem by collecting data

Convert the practical problem to a statistical one, define statistical goal and identify potential statistical solution

Confirm and test the statistical solution

Convert the statistical solution to a practical solution

Define

D Define

M Measure

A Analyze

I Improve

C Control

VoC - Who wants the project and why ?

The scope of project / improvement (SMART Objective)

Key team members / resources for the project

Critical milestones and stakeholder review

Budget allocation

Measure

Ensure measurement system reliability

Prepare data collection plan

Collect data

- Is tool used to measure the output variable flawed ?

- How many data points do you need to collect ?

- How many days do you need to collect data for ?

- What is the sampling strategy ?

- Who will collect data and how will data get stored ?

- What could the potential drivers of variation be ?

D Define

M Measure

A Analyze

I Improve

C Control

Analyze

How well or poorly processes are working compared with - Best possible (Benchmarking) - Competitor’s Shows you maximum possible result Don’t focus on symptoms, find the root cause

D Define

M Measure

A Analyze

I Improve

C Control

Improve

Present recommendations to process owner. Pilot run - Formulate Pilot run.

- Test improved process (run pilot).

- Analyze pilot and results.

Develop implementation plan. - Prepare final presentation.

- Present final recommendation to Management Team.

D Define

M Measure

A Analyze

I Improve

C Control

Control

Don’t be too hasty to declare victory.

How will you maintain to gains made?

- Change policy & procedures

- Change drawings

- Change planning

- Revise budget

- Training

D Define

M Measure

A Analyze

I Improve

C Control

Benchmark

Contract / Charter

Kano Model

Voice of the

Customer

SIPOC

Process Flow Map

CTQ

CTQ Tree

7 Basic Tools

Defect Metrics

Data Collection,

Forms, Plan,

Logistics

Sampling

Techniques

Cause & Effect

Diagrams

Statistical Inference

Control Charts

Capability ratios

Root Cause Analysis

5 Why’s

Cause and effect

Capability ratios

Process Map

Regression analyses

Correlation

5 S

Kaizen

Statistical Controls

Control Charts

Histogram

Sigma calculation

Non Statistical

Controls

Procedure

adherence

Performance

Management

Preventive activities

Poke yoke

Define What is wrong?

Measure Data & Process

capability

Analyze When and where

are the defects

Improve How to get

to six sigma

Control Display

key measures

Tools for DMAIC

Reality

• Six Sigma through the correct application of

statistical tools can reap a company enormous

rewards that will have a positive effect for

years

or

• Six Sigma can be a dismal failure if not used

correctly

The right support +

The right projects +

The right people +

The right tools +

The right plan =

The right results

Six Sigma is not a destination; it is a

continuous journey.

Now, please, start your journey.

Thank You

&

Allah Hafiz