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Quantify Opportunity Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

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What is Quantify Opportunity?  Process  Agree with the team the key X’s  Identify which the team can control  Share how much the team can control Y  Share the Vision of how much the team will manipulate the key X’s to control Y  Finalize with the Champion the Charter – goal, team, budget benefits, schedule.  Process  Agree with the team the key X’s  Identify which the team can control  Share how much the team can control Y  Share the Vision of how much the team will manipulate the key X’s to control Y  Finalize with the Champion the Charter – goal, team, budget benefits, schedule.

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Page 1: Quantify Opportunity Six Sigma Foundations Continuous Improvement Training Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

Quantify Opportunity

Six Sigma FoundationsContinuous Improvement Training

Six Sigma Simplicity

Page 2: Quantify Opportunity Six Sigma Foundations Continuous Improvement Training Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

What is Quantify Opportunity?

Aim of this Module

Finalize with the Champion - the Charter goal, team, budget benefits, schedule … based on facts and understanding S,C,N

Page 3: Quantify Opportunity Six Sigma Foundations Continuous Improvement Training Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

What is Quantify Opportunity?

s Processs Agree with the team the key X’ss Identify which the team can controls Share how much the team can control Y s Share the Vision of how much the team

will manipulate the key X’s to control Ys Finalize with the Champion the Charter

– goal, team, budget benefits, schedule.

Page 4: Quantify Opportunity Six Sigma Foundations Continuous Improvement Training Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

SCN : Standard, Control, Noise

s Of the causes Quantified and Verified we now categorize them into S,C,N -standard, control or noise.

s The purpose is to agree to focus on which X’s can be changed and how much Y can be changed

Page 5: Quantify Opportunity Six Sigma Foundations Continuous Improvement Training Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

SCN – Definitions

s Standard will not significantly change during project

s Control may change during project and the team can choose its level

s Noise everything else

Page 6: Quantify Opportunity Six Sigma Foundations Continuous Improvement Training Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

SCN – Definitions

‘…give me the courage to change the things I can change, the patience to accept the things I can’t change, and the wisdom to know the difference…’

SCN vrs time

0

2

4

6

8

10

12

14

16

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Time

S

C

N

Page 7: Quantify Opportunity Six Sigma Foundations Continuous Improvement Training Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

SCN Relation to SIPOC

s You would expect to find in SIPOC’s input column the X’s that contribute the largest effects on Y

s Further the Control types are typically those Inputs for whom the Supplier is a member of your project team

s Clearly the presence of suppliers of key inputs on your team will increase the scope of your control

Page 8: Quantify Opportunity Six Sigma Foundations Continuous Improvement Training Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

Regression Example

s The example is the relationship of the cost of paint compared to the area of a skid.

s If there is a practical benefit to making more accurate predictions consult your black belt.

3 4 5 6 7 8 9 10 11 12

0

500

1000

Area m2of skid

Cost

of p

aint

Cost of paint = -170 + 95 x Area of skid

Regression

95% CI

95% PI

Regression Plot

Predictive Equation

Page 9: Quantify Opportunity Six Sigma Foundations Continuous Improvement Training Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

807060

60

50

40

X

Strong Linear

53.552.551.550.549.548.547.546.5

5554535251504948474645

X1

No Relationship

55545352515049484746

5554535251504948474645

Moderate Linear

0 10 20 30 40 50 60 70 80 90 100

4.5

5.0

5.5

6.0Strong Non-Linear

Examples of Variable Relationships

Page 10: Quantify Opportunity Six Sigma Foundations Continuous Improvement Training Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

Questions: Is There Any Evidence That Horsepower And Miles Per Gallon Are Related? How About Horsepower And Acceleration?

1101009080706050

25

20

15

10

1101009080706050

45

40

35

30

25

20

Horsepower

Generating Scatter Plots

Cars82.mtw

HorsepowerM

PG

Acc

eler

atio

n

Page 11: Quantify Opportunity Six Sigma Foundations Continuous Improvement Training Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

Quantify Opportunity

Six Sigma FoundationsContinuous Improvement Training