yellow belt

PROBLEM SOLVING & SIX SIGMAFrancy Chesser

MGT 650

Summer 2014

GBS LSS YELLOW BELT TRANSACTIONAL

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What is Six Sigma?

Six Sigma+Lean is the consistent further development and systematic interlinking of proven tools and methods

Six Sigma is strongly customer oriented methodology, supporting companies to be

customer centricRaising quality andcustomer satisfaction

Project benefit forthe company in $

Six Sigma+Lean means "six standard deviations". The Six Sigma+Lean vision means that the standard deviation of a normal distribution fits +/- six times between the specification limits defined by the customer (upper specification limit = USL and lower specification limit = LSL). The located value corresponds to a quality level of 99.9999998 %. Practical experience shows that processes fluctuate over time by at least +/-1.5 Sigma, this means that in the end a quality level of 99.9997 % is achieved and this corresponds to an error rate of 3.4 defects per million opportunities

Measurement Dimension

Customer orientation


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Methodology Dimension

Most of the companies use Six Sigma to improve existing processes with

DMAIC tool set

After successful use of DMAIC in improvement of Six Sigma, a tool

set for development of new processes was designed called DFSS

Last Dimension of Six Sigma maintains achieved results by DMAIC

or new set up process/product by DMADV Improve processesDMAIC

Develop processesDFSS / DMADV

Process management takesresponsibility for the processes

Tools Results

Define

Phase

Measure

Analyze

Improve

Control

• Project Charter• High level process

map• Collection of

customer requirements

Cause

List of root

causes

• Definition of the size of the problem (SOW)

• Definition of the process to be improved

• Definition of the customer & his requirements

• Project potential in numbers (€)• Fact & data based definition of the

current situation

• Search for root causes• Data driven analysis and

verification

• Root cause related creation of solutions

• Systematic value based selection• Stringent improvement planning

• Documentation of final solutions• Control of results after 12 months • Detailed reaction plan measures

Start

Stop

List of possible

solutions

Implementation plan

Technical call

process

4321

240 -

190 -

140 -

Process analysisData analysisFocus

Problem

Scope

Goal

Team

• Output measurement

• Data collection• Process capability

• Process Analysis• Data Analysis• Root Cause Analysis

• Solution generation• Solution selection• Pilot &

Implementation

• Process Documentation

• Monitoring Charts• Reaction Planning• Process Perform.

Review

t

Call duration

t

Call duration (# Calls)

PWT time

t

PWT time

t

D M A I C



5

The Main Questions

Does it work ?

Why we have the

problem ?

How big the problem is ?

What is the problem ?

How to solve the problem ?


Avoid or Redefine projects that fall into

any of these categories: Fuzzy objectives

No tie to financials

No team/resource to drive the project

Too broad in scope

No connection to strategic or annual plans

Solution already defined and agreed (go for just do it project)

Too many objectives

Without measurable $ benefits6

D M A I C


Look for … What is on the current & coming Agenda of the department

Problems needing solutions to meet annual operating plan

Major problems with financial impact (customer or environmental crises)

Problems re-appearing on the agenda several times (“fire fighting is not enough”)

High volume products (small improvements can have huge impact)

Products and processes with major backlogs

Overtime, warranty, and other sources of waste

Rework and scrapping activities

Large budget items

Project has to have $ BENEFIT !!! ( minimal requirement is $5k / year)

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D M A I C

WHAT IS PROCESS ?

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D M A I CGBS LSS Yellow BeltTransactional

“ The application of knowledge, skills, tools, techniques and systems to define, visualize, measure, repeat, control and improve process with goal to meet customer requirements profitably “

INPUT PROCES OUTPUT

WHAT IS PROCESS ?

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D M A I CGBS LSS Yellow Belt Transactional

VOICE OF CUSTOMER/BUSINESS - TOOL I

Voice of the customer (VOC) Key issue Critical to Quality (CTQ)

Voice of the business (VOB) Key issue Critical to Quality (CTB)


I do not want wait for taxi for ages

I want to be taken to the correct location

I want to pay correct bill

TIME

LOCATION

QUALITY

Each customer MUST BE taken to the right location

Each Taxi MUST pic up customer in 10 min

Each bill MUST BE correct

We want decrease the cost…

Cost / Expense

Reduce cost for…

Output measurement

Output measurement

Define output measurements

List of CTQ/CTB

Define how strong the measurements evaluate CTQ/CTB. Use ratings: 0 none, 1 weak, 3 medium, 9 strong

Output Measurement Matrix – Tool 2 How can we measure customer requirements?


# of cases no pick up in 10

# of cases customer taken on wrong location

# of incorrect bill

9

9

9

1 0

0 0

Each Taxi MUST pic up customer in 10 min

Each customer MUST BE taken to the right location

Each bill MUST BE correct 0 0

DATA TYPES


DATA TYPES

Discrete (Count) Data

Continuous Data

Can be categorized in a classification and is based on counts.

Can be measured on a continuum, it has decimal subdivisions thatare meaningful

Number of defectsNumber of defective unitsNumber of customer returnsYes / NO Black / White

Time, Pressure, Conveyor Speed, Material feed rateMoney

DATA PARAMETERS


Basic statistical categories

Location parameters

Distribution parameters

Defines where most of our data points are located

Defines how big are the differences between data points

MeanMedianModeQuartileMin/max

VarianceStandard deviationRange

SWIMLANE (AS IS – TO BE)HOW LOOKS OUR PROCESS?

Processstart/end Process step

application

Use serviceRequest service

Technical feasibility

Enter order

Verify order

Enter order

Cancell orderapplication

Call Centeroperator

Sales agent

IT specialist

Function

Customer

Technical expert Instal service

Communicate cancellation

Communicate cancellation

Comment

yes

no

Recommended symbols: Processstart/end Process step application

Function Comment Swimlane template


DATA COLLECTION PLANWHAT MUST BE DONE TO HAVE GOOD DATA AND IN TIME?

Belt: <

nam

e>

Pro

ject: <

nam

e>

What to measure? How to measure? Who does it?When

?

Measurement name

Operational definition

Sample Size

Input/output/ process

Collection description

Data tags needed to stratify the data

Responsible for collection

Date


D M A I CGBS LSS Yellow Belt TransactionalData Stratification

WHY

Break down data to recognize new structures with which we can limit and explain a problem, e.g. when a problem occurs at different times, at different places, or under different conditions.

Stratification options

WHO Sales agent, operator,

WHENQuarter of the year, month, time of the day,

WHERE Country, region, town

WHATCall reason, failure reason, purchase reason

HOW Contact type, sales channel, treatment type

CAUSE & EFFECT DIAGRAMWHAT IS CAUSING OUR PROBLEMS?Measurement descriptionMan

Methods

Measurement

Machine

Material

Mather nature

Problem statement

D M A I C

yellow belt

Data & Analytics