zero defect

ZERO DEFECTS- THE SIX SIGMA WAY

BY: SOFT SKILLS WORLD

What is Six Sigma?

• A strategy to become world-class through process improvement

• An emphasis on better, faster, lower cost

• An evaluation of all aspects of a business

• A definition of value from the customer’s perspective

• A focus on knowledge-based decision making

• A commitment to cultural change

• A journey, not a destination

Process• Many people are responsible for designing, analyzing, and maintaining business processes.

– Project Champions– Process Owners– Master Black Belts (MBBs)– Black Belts (BBs)– Green Belts (GBs)

• Each one of the team member plays an important role in the project during various phases.

5

Six Sigma Roles• Six Sigma Improve projects include the following key roles.

Master Black BeltGreen Belt

Project Champion Process OwnerProject Sponsor

Black Belt

Along with Subject Matter Experts, these roles are critical to the success of the Six Sigma project.

Basics of Variation

• Process improvements are driven by the understanding of variation.

Center• Is the process on target? If not, where is the process center?

Spread• How variable are the scores around the center?

Shape• What is the shape of the distribution?• Is it bell-shaped, skewed, symmetric?

Over Time• How does the process behave over time?

Variation = Uncertainty

The Customer’s Perspective

• The results of the variation show up as:

Good or Bad?• The payment is applied to the right account• The payment is not applied to the account

On Time or Not?• The payment is applied right on time• The payment shows up too soon/too late

• So what are our options?

Variation = Uncertainty

Key Phases of the Six Sigma Methodology

• Six Sigma methodology provides a framework to systematically improve critical processes. While each approach is slightly different, they draw upon the same set of tools to deliver results.

• Six Sigma Improve

• Six Sigma Design

• Six Sigma Process Management

Define Measure Analyze ImproveImprove ControlControl Leverage Leverage

Measure Analyze Analyze Design Design Execute ExecuteDefine

Mobilize Measure Measure Identify Identify Manage ManageDefine

Define Measure Analyze ImproveImprove ControlControl LeverageLeverage

• Six Sigma Management Disciplines

DMAICL Overview – Our Methodology

• Six Sigma Improve follows a phased format.

The most successful Six Sigma projects ensure key outcomes are achieved within each phase. However, it is not a linear process.

You will see the phases overlap. For example, Leverage starts in early Define.

Define the customer and project scope

Measure the process and validate the measurement system

Analyze the data and identify solutions

Improve the process with pilot and DOE

Control the new process

Share the results with other areas

Define Measure Analyze ImproveImprove ControlControl LeverageLeverage

DMAICL – An Iterative process

Capability and DPMO

(Includes ± 1.5s Mean Shift)

2s3s4s5s6s

308,53766,807

6,2102333.4

ProcessCapabilityProcess

CapabilityDefects per Million

OpportunitiesDefects per Million

OpportunitiesProcess

YieldProcess

Yield

69.1463%93.3193%99.3790%99.9767%99.9997%

Adapted From M. Harry - The Vision of Six Sigma

How good are we today?

What does it mean to our customers?

Define: Process• High level process to complete the Define Phase

Define Project

Select Black Belt and Team

DevelopProject

Plan

Define Problem

Statement

Obtain Approval

• CT Tree• QFD

• Project Charter

• Determine Roles

• AEPM • Project Charter

Measure: Process

• High level process to complete the Measure Phase

Establish Baseline

Collect Data & determine goodness

of data collected

Determine the Vital few drivers of the business problem

• Capability Analysis

• Stability Analysis

• Create Data Collection Plan• Decide Sampling Strategy• Collect Data• Measure System Analysis

• Pareto based on the 80/20 principle

Analyze: Process

• High level process to complete the Analyze Phase

DocumentCauses thatImpact the Y

DetermineFailureModes

DetermineVital X’s

RefineSampling

Plan

• Fishbone • T-Test, ANOVA • Test of Equal Variance• Chi Square• Regression• 2 Proportions

• FMEA

CollectAdditional

Data

FinalizeVital X’s

AssessRisk

UnderstandEntitlement

• Sample Guidelines• FMEA

• Subgroup the data • Zst (shift)• Process Report• Product Report

• FMEA

Improve: Process

• High level process to complete the Improve Phase

Plan Experiment

PerformExperiment

ExtractPredictiveEquation

DetermineVariable

Relationships

• Mean, Variance

• Fractional Factorial DOE• Full Factorial DOE

DevelopImprovement

Options

DetermineImproveStrategy

ImplementSolution

PredictFuture

Performance

• Predictive Equation• Residual Analysis

• Solution Design Matrix

• Solution Design Matrix

ValidateImproved

Performance

• 2 sample T• ANOVA • Regression

•Test for Equal Variances•Chi Square•2-Proportions

Control: Process• High level process to complete the Control Phase

MistakeProof New

Process

DevelopFeedback

Mechanism

DismantleOld Process

• Fishbone• FMEA• Mistake Proofing• SOP’s

• X-Bar and R, • I&MR• P Chart• C Chart• Trigger Points• Process Control Plan• Scorecard

•Process Maps

Leverage: Process• High level process to complete the Leverage Phase

DetermineTranslation

Opportunities

TranslateImprovements

By using R6/MIS from the beginning of your project, you may be able to find pertinent research that can be leveraged towards your own project.

Share Best Practicesin R6/MIS

• CT Tree• Process Maps

• R6/MIS• Rewards and

Recognition

Always begin with implementing pilot solutions

Why Pilot Solutions?

• Better understand the improvement effectiveness

• Lower overall risk prior to full scale roll-out

• Predict overall cost/benefits and COPQ impact

• Justify further investments

• Identify potential new issues that may not have been considered

Solutions are piloted to:

How To Pilot Solutions?

• Select a small scale roll-out of improvements in the actual process

• Choose a small segment that is in urgent need of change (test markets, software launches, control groups, power users)

• Walk the new process and gather data!

• Use hypothesis testing to verify results (Were the desired results achieved?)

When implementing solutions:

Sustaining Process Improvements

• Make the PROCESS independent of the PEOPLE

• Make the OUTCOME robust to variation from the INPUTS

• DESIGN OUT other potential sources of variation

We need ensure your process has attained the a stabilized state without any external control mechanisms

Key elements to consider in sustaining a desired state:

Quality Improvement

Project Management Toolkit

Project Management Toolkit

• Project Execution• Project Story board• Project scoring & GB certification• Governance process

– Customer ( Status Report format )– FCI leadership ( Mentors )– FORUM ( draft enclosed )One day Quality training plan

Define ControlImproveAnalyzeMeasure

Green Belt Project: Suggested Tools

•Project Charter •Process Map

•Gage R&R

•Process Baseline/Sigma

•Fish Bone

•QFD

•Benchmarking

•Surveys

•Regulations

•Run Chart

•Normality Test

•Fulfillment Calculations

•FMEA( Upto RPN)

•Fish Bone

•T – Test

•Test for Equal Variances

•ANOVA

•Chi Square Test

•Regression

•2 – Proportions

•Box Plot

•Histogram

•Pareto Chart

•Scatter Diagram

•Mistake Proofing

•Solution Design Matrix

•Fractional Factorial DOE

•Full Factorial DOE

•Residual Analysis

•Equation for Mean

•Equation for Variance

•2 – Sample t – Test

•ANOVA

•Test for Equal Variances

•2 – Proportions

•SOPs/DIs

•FMEA

•3 Data Points

•Fish Bone

•Mistake Proofing

•X-Bar & R Chart

•I & MR Chart

•P – Chart

•C – Chart

Project NameProject No:

Start Date: End Date:

Project Charter



3

4

5

6

2

1

ConclusionResultObjectiveTools UsedS.no

Define



3

4

5

6

2

1


Measure



3

4

5

6

2

1


Analyze



3

4

5

6

2

1


Improve



3

4

5

6

2

1


Control



3

4

5

6

2

1


Leverage

Details of tools to be stored in PACE / Shown during scoring of projects



• Sign off by process owner on results achieved

• Sign off by PMA on Financials

Tools Points

Project Charter 5Problem Statement 1Goal Statement 1Defect 1Others (Project Plan , roles & resposibilities etc.) 2

Process Map 4Level 1 to 3 or lower Provided 2.5Flow (Volumes/Rates) 0.5Cycle (Rework/Delays) 0.5Value (VA / NVA) 0.5

Gage R & R 2Set-up - overall approach 0.5Setup - operator selection explained 0.5Setup - sample size (# of attributes: 30 Discrete, 10 Continuous) 0.5Setup - 3 operators 0.5

Sigma Level 1Operational Definition Provided 0.5Setup. 3 Operators 0.5

Fish Bone 26 Bones used as defined 0.5Head of the Fish is a detailed problem statement 0.5Ask Why at least 3 times 0.5Low level bones are measurable and actionable 0.5

Other Tools 1

Scoring Methodology

FMEA 5All low level bones included 2Sorted by RPN numbers 2COPQ associated with each low level bone 1

Other Tools 5

ImproveMistake Proofing 3

Realised Benefits( 1 per FTE) 3

Solution Design Matrix 2Design selected for implementation includes Mistake Proofing 1Design selected consistent with Project Charter financials 1

Other Tools 2

ControlSOPs + DI s 4FMEA 2Control Chart with 3 Data Points 2Other Tools 2

Leverage Sharing Project Learnings 2.5

Identification 2.5

Maximum Points 50

Points Required for Certification( In case of multiple projects, the max points in each Phase are considered) 35

Project NameFRCE-02-GA-001


Define ControlImproveAnalyzeMeasure

Problem StatementThe objective of this project is to identify solutions for reducing the card member remittance suspension and improving the auto-match so that card member can get credit on the same day in Japan market

Benefit Summary ( Flexibility / Speed / Value / Quality )Value 39K

DefectATM network in Japan

Key achievements:• Potential solution for removing the root cause identified .

• List of Main root causes created

Tools Used

FMEA, ANOVA

Next Steps/Counter Measures

Risks/Challenges

Metric No. Metric Numerator Denominator POD Z M-> Jan '02 Feb '02 Mar '02Z 1.71 1.71 1.82

DPMO 416667 416667 375000Num 10 10 9Den 24 24 24

Z 2 2 6DPMO 466667 333333 0Num 7 5 0Den 15 15 15

Z 6 6 6DPMO #DIV/0! #DIV/0! #DIV/0!Num 0 0 0Den 0 0 0



Z 6 6 6DPMO 0 0 #DIV/0!Num 0 0 0Den 1 1 0

Z 0 1 6DPMO 875000 666667 #DIV/0!Num 7 2 0Den 8 3 0

Z 6 6 6DPMO 0 0 #DIV/0!Num 0 0 0Den 1 1 0

Total No of Projects identified for Closure

8

Closure Report in PACE

No of projects where Project Closure report not put in PACE

Total No. of FTEs Per Plan

7

Projects Closed No of Projects not closed per plan

Total No. of Projects planned for closure

6

FTEs achieved Per Plan

No of FTEs not achieved per plan

Total No. of BL Reviews to be conducted.

5

Fortnightly Project Status Report (PSR)

No of Projects in which the fortnightly PSR did not reported

Total No. of PSRs to be reported

4

Monthly BL Reviews

No of Projects in which the monthly BL Reviews did not happen

Total No. of Projects Put in PACE

3

Fortnightly SDL Review

No of Projects in which the fortnightly SDL Reviews did not happen

Total No. of SDL Reviews to be conducted.

2

Project Charter in PACE

No. of Registered Projects in which Project Charter not put in PACE

1

Projects Registered in PACE

No of Projects not registered in PACE.

Total No. of Projects Identified for Registeration

Projects Tracking Metrics

What Is a Metric ?

A metric is a statistic or parameter that is expressed as a number which explains the nature of an event , process or noun. It is usually a response to how much , how small , how big or an expression of time elapsed.

a) Length of our trousersb) Time to get to the officec) Chest size d) Tyre Pressure etc.e) Marks received in school

To Appreciate the need for Metrics Let us hear the Story Of Darji Aflatoon

Din Gaya aur Parson Aaya , Dil mera har pal muskaya,

Gaya mein lene apni patloonTabhi Mila Darji Aflatoon.

Bola Patloon hai TaiyaarAbhi Daal Kar Dekho Yaar

Andaza lagaya tha usneKahe mujhe hai Faster TrickIsme lage nahin metric

Kismat Thi Meri BekaarSamjha Anadi ko Hoshiyaar

Aisa tha Darji AflatoonBan gayi Nikkar Meri Patloon.

Darkhwaast Yaaron se Karta HoonMat Ban na tum Aflatoon

Isstemaal na Karna Uski TrickApne Banwao Tum MetricHar Roz Bharo apne MetricHar Roz Padho Apne MetricIsstemaal Karo Tum Metric

Saalon Pehle Ek Darji thaNaam tha Darji Aflatoon .Usko mila main aur kaha “Bana do mere liye, ek Patloon”

“Par Tum Karna Thodi JaldiKyunki parson hai meri Shaadi”

Darji Aflatoon bada hoshiyaar Kahe Sabhi Ko Baram Baaar“Jo ayega Mere Dwar Kar Doon uska Baeda Paar”

Main abhi ispe shuru hota hoonParson le jana apni Patloon

Others would say that these don’t have any degree and hence don’t need any metric to measure .ie. You are either honest or you are dishonest. There is no 80% honesty.You are either in Love or you are not . It doesn’t make sense to say that one is 30% in Love.

Others would say that these don’t have any degree and hence don’t need any metric to measure .ie. You are either honest or you are dishonest. There is no 80% honesty.You are either in Love or you are not . It doesn’t make sense to say that one is 30% in Love.

Such Items ( Those That don’t have Metrics around them - Difficult to Understand) are dealt with in a Separate Subject.

There are People who specialize in this Subject

They are known as………...

So What Subjects are their pet Subjects :

•Love•Grief•Happiness•Honesty

However you can have metrics to measure how many persons in a population are happy or in Love at any given time.

These Subjects are not dealt with in Science , Commerce , Medicine etc.

These Subjects are not dealt with in Science , Commerce , Medicine etc.Philosophers

Since it cannot be checked that is why some people make a roaring Business out of telling people whether they are in Love or not. Some Use Questionnaires ; the others use ………………. Stars

A business would need metrics at every level of its management hierarchy to a) Track requirementsb) Performancec) Prevent problemseg:a) Number of effective Person hours availableb) % Downtime or Utilisation of a machinec) Total Inventory of Goodsd) Amount of Work -In - Processe) Revenue generatedf) % errorsg) Volume of Demandh) Turnaround timeI) Absenteeism ratesj) Return On Investment etc.etc...

Why do we need metrics in business ? :

MetricsMetrics UnderstandingUnderstanding ControlControl ImprovementImprovement SurvivalSurvival

If we don’t measure and track these critical business metrics then :a) no body can understand what is happening .b) we will not be able to decide anythingc) if we decide it will be based on feelings not factsd) if we decide we shall not know the results of a decisione) Your colleagues can not know if your performance is good or badf) We will not know if we should invest , spend or save---- in short complete chaos.

What is Six Sigma? :

Six Sigma is a customer focussed process improvement management approach that promises near perfect quality or 3.4 defects per million opportunities. This is a level of Perfection that all world class organisations are aspiring to .This management process has Six Steps : Define, Measure , Analyze , Improve ,Control and Leverage The Beginning of Six Sigma approach is Define which requires the availability of Metrics. Hence Six Sigma cannot begin without Metrics.

What are Six Sigma Metrics?:

Six Sigma as a management philosophy focuses on the customer . It focuses on what the customer ( internal or external ) expects and not on what the current paradigms dictate as possible.

Customer is any person who is the recepient of your process output. A colleague, Your TL, SDL, BL or any external person who uses information etc. provided by you.

Metrics that capture key customer requirements or the ones which are key to delivering these expectations are known as Six Sigma Metrics.

In context of American Express we need to measure those metrics that are critical to our three constituencies viz. Customers , Employees and Shareholders.

So Who is a Customer ?

Six Sigma methodology offers us a tool which is known as QFD or

Quality Function Deployment. This tool is used for the following purposes

:

• Capture the Voice of the Customer to establish all his needs.

• Find out the Customers’ rating of the importance of various needs.

• Transfer this importance to internal company processes.

• Develop metrics that focus on critical process performance.

• Prioritization of Metrics that need improvement . ( Projects)

QFD : Quality Function Deployment

When Should we use QFD ? :

We should use QFD in following cases :

a) When the Voice of the customer has not been captured and no metrics

exist to track performance.

b) Metrics have been developed , metric performance is good yet

customer satisfaction is either stagnant or deteriorating ( Customer

complaints are rising)

c) Market share is stagnant or being lost.

d) It is also used for designing of Products and Processes

QFD Detailed Methodology :1. Define your customer and make the SIPOC diagram.

Your Customer is the person who uses the output of your process. Eg. Market finance personnel or function , your TL, BL etc.

The SIPOC Diagram : Puts into Perspective the Broad Picture of the Process and the end Parties involved.

SS

Supplier Inputs

PP

Process Output

CC

Customer

I O

List your Supplierhere

List the Inputs recd. From the supplier here

Name the Process Here

List the Outputs provided to the customer

List the Customers here.

SS

Supplier Inputs

PP

Process Output

CC

Customer

I O

List your Supplierhere

List the Inputs recd. From the supplier here

Name the Process Here

List the Outputs provided to the customer

List the Customers here.

Each Output may be considered as a product that you supply to the customer or you may consider the set of outputs as a single product.

If you consider the set of Outputs as a single product then you must find out what is the relative importance of the various outputs and its relevance to the customer.

Select the product for which you want to develop the metrics. And then perform the detailed QFD on the same.

2. Write down the Categories of Customer Expectation

1) Performance : How well does the service provider perform its stated function.

(Adherence to SLA viz. time , Accuracy)

2) Capacity : Does it have the capacity to handle my volumes ? Spikes

3) Reliability: How reliable is the process ?, How often does it break down? (Exception to

SLA , churn , control )

4) Time to deliver : How much time does it take to install ( migrate a new process ?)? How

much time does it take to process a special or new request ? How flexible is the process ?

5) Ease of Use :The service is easy to use. Length or number of steps it takes a customer to

avail of a particular process output / information .

6) Response to Queries / complaints : How quickly and how well are the complaints or

queries resolved?

7) Accessible & Courteous: Is it easy to approach the service provider ? Does the service

provider respond positively to customer opinions and needs ?

8) Safety : How safe is the service in terms of Privacy ? BCP , Financial Exposure

9) Aesthetics (Report Formats)

The World Over Customer Expectation in the service sector may be classified into 9 categories which are :

S.No Customer Expectations1

2

3

4

5

Performance1.1 Accuracy of Process 1.2 Time taken to process

Capacity2.1 Ability to handle Volume Spikes

Reliability3.13.23.3

How often does it give errors beyond SLAHow often does it exceed timelinesHow good is the control system ( Audits)Time To Deliver

4.14.24.3

How much time does it take to deliver a new requestFlexibility Of the ProcessTime to Migrate a new Process

Ease Of Use 5.1 No. Of Steps to avail of a Particular Information5.2 (----------)5.3 (----------)

This break down is done for each of the categories of customer expectation for a particular process

2. Put your self in the shoes of your customer and think of the specific requirements that he / she may have in each of the categories of Customer Expectations as shown in the figure

S.No Customer Voice1

2

3

4

5

Performance1.1 Accuracy of Process should be High 1.2 Time taken to process should be low

Capacity2.1 Ability to handle Volume Spikes should be high

Reliability3.13.23.3

How often does it give errors beyond SLAHow often does it exceed timelinesThere should be no surprises to the customer

Time To Deliver4.14.24.3

New requests should be processed quicklyProcesses should be flexibleTime to customize for a new feature / reqmt. Is less

Ease Of Use 5.1 No. Of Steps to avail of a Particular Information5.2 (----------)

Rating

53

1

55

5.3 (----------)

4

432

3

4. Approach the Customers you defined in the 1st Step and request them to check the requirements you put in and the ratings you gave on behalf of the customers and record their feed back as shown.

Arrange the ratings that you gave in the left side of the Matrix as shown

Customers' RatingCustomer Need No.

C1 C2 C3 C4 C5 Average

1.1 5 4 5 3 4 4.201.2 4 3 5 4 5 4.202.1 4 5 4 5 4 4.403.1 5 5 5 5 5 5.003.2 2 1 1 2 2 1.603.3 1 1 2 2 1 1.404.1 4 5 4 5 3 4.204.2 3 2 1 2 3 2.204.3 2 2 2 2 2 2.005.1 5 4 5 5 4 4.605.2 4 3 5 4 5 4.205.3 2 1 1 1 2 1.405.4 1 2 2 1 1 1.406.1 3 2 2 4 3 2.806.2 3 4 2 3 3 3.007.1 5 5 4 5 4 4.607.2 4 4 5 3 4 4.00

5.Transfer this average rating to your QFD matrix on the left side as shown

S.No

Customer VoiceC.Rating

1.1Accuracy of reports should be high

4.20

1.2Time to Process should be low

4.20

2.1Ability to Handle Volume 30% spikes effectively

3.60

3.1Freq. Of errors beyond SLA

4.40

3.2Freq of exceeding Timelines

5.00

3.3Good Controls ( Audits / Surprises)

1.60

4.1Quick Delivery of new requests

1.40

4.2 Process should be flexible

4.20

4.3Time to customise for a new process

2.20

5.1Steps to avail Infromation

2.00

Company / Process Metric

6. Now Brainstorm what company metric would reflects and what company metric is related to the customer need and write these in the Top Row of the QFD matrix as shown.

S.No Customer VoiceC.Rating


4.20


4.20


3.60


4.40


5.00

3.3Good Controls ( Audits / Surprises)

1.60

4.1Quick Delivery of new requests

1.40

4.2 Process should be f lexible

4.20

4.3Time to customise for a new process

2.20

5.1Steps to avail Infromation

2.00

Tim

e to in

corp

ora

te

change

No O

f S

teps in

the

pro

cess till c

usto

mer

util

isatio

n

No O

f C

om

pla

ints

No . O

f E

xceptio

ns

Err

ors

per

Report

Turn

aro

und T

ime

Rew

ork

T

ime P

PM

Tim

e to deliv

er

spl

request


7. Input the relationship strength in the cells as relevant and as shown.Those company Metrics that have a strong relation to the Customer Voice are given 9 , Those with Medium relation are given 3 and the ones which have a weak relation are given 1.



4.20 9 3 9


4.20 9 3 1


3.60 9 3 9 3 3


4.40 3 9


5.00 3 9

Tim

e to

inco

rpor

ate

chan

ge

No

Of S

teps

in th

e pr

oces

s til

l cus

tom

er

utilis

atio

n

No

Of C

ompl

aint

s

No

. Of E

xcep

tions

Err

ors

per

Rep

ort

Tur

naro

und

Tim

e

Rew

ork

Tim

e P

PM

Tim

e to

del

iver

spl

re

ques

t


Strong : 9Medium : 3Weak :1

8.Now Multiply the relationship index with the weights given by the customer and add to get the weighted importance of the company metrics as shown.



4.20 9 3 9


4.20 9 3 1


3.60 9 3 9 3 3


4.40 3 9


5.00 3 9

Total 33.4 70.2 38.4 0 0 36.6 63 93.6T

ime

to in

corp

orat

e ch

ange

No

Of S

teps

in th

e pr

oces

s til

l cus

tom

er

utilis

atio

n

No

Of C

ompl

aint

s

No

. Of E

xcep

tions

Err

ors

per

Rep

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Tur

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und

Tim

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Rew

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Tim

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PM

Tim

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del

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spl

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t


The Highest Values indicate which metric is the most important from the customers perspective.This Completes QFD-I

Process MetricC.Rating

Turnaround Time 70.20

No. Of Complaints 63.00

No.Of Exceptions 93.60

Total

QFD -II QFD - II is similar to QFD - I . The only difference is that the Process Metrics which were on the top row in QFD - I are transposed to the left most coloumn of the Matrix as shown along with the weighted ratings.

9.

10. Now list the process activities , that result or contribute to the metrics listed on the left , on the Top of the Matrix as shown


Turnaround Time 70.20

No. Of Complaints 63.00

No.Of Exceptions 93.60

Total

Tim

e pe

r T

rans

actio

n

Thr

ough

put T

ime

Upt

ime

of M

illi

No

Of E

rror

s in

Inpu

t

Tot

al R

ewor

k P

ropo

rtio

n

No

of P

roce

ss S

teps

11. Now again input the relationship between Metrics on the Left viz.. the Metrics on the top .


Turnaround Time 70.20 9 3 3 9 9 9

No. Of Complaints 63.00 3 9 9No.Of Exceptions 93.60 1 3 9 3 9

Total 914.4 1058 1053 912.6 631.8 631.8 1409

Tim

e pe

r T

rans

actio

n

Thr

ough

put T

ime

%ag

e ad

here

nce

to

esca

latio

n N

orm

Upt

ime

of M

illi

No

Of E

rror

s in

Inpu

t

Tot

al R

ewor

k P

ropo

rtio

n

No

of P

roce

ss S

teps

The metrics that have the max . Points become the CTx’ Metrics

So Finally what are the Metrics that I should Develop

As we have seen the QFD is a tool to capture the VOC and leverage that VOC to extract and establish during its two phases the following :

QFD- I : The most important process Metrics relevant to the CustomerQFD -II: The most important activity Metrics that are critical to Customer Expectation

VOC

Process Metric(Output)

Activity Metric(Input or Driver)

QFD- I

QFD- II

Once or Twice an Year

Weekly or Monthly

Daily or Weekly

Monitoring / Managing Frequency

QFD is a tool. Remember that all tools are meant to assist Human thinking / Working ; if the result is against your strongest rationale then you must check the process again. QFD is meant to help you manage better your customer & shareholder expectation and thus helps to increase your effectiveness.

Hence if you believe that a metric that does not come out as a CTx is crucial , please do monitor the same.

We must manage the Input or driver Metrics as they dictate our performance and also monitor the Output Metrics as that is the result of our management.

Beware Of Pitfall

Project Management Analogy

A=1

D=3

B=4

C=1

E=8

F=6

H=2

G=1 I=6

Look at the above project activity diagram. The project timelines depend on the the path of the highlighted activities. which is known as the critical path.However it means that we need to give greater focus to the highlighted activities and must manage it very closely.This does not mean that the other activities do not need any management.If the other activities such as BFGC are not managed then there is a possibility that the critical path may itself shift.Hence if we meet daily to monitor the critical activities , then we must meet once a week to monitor the general activities lest they become critical.

Remember the white house game analogy : To manage effectively we need metrics .This is where CSA is important to manage other activities or requirements.

Six Sigma Metrics

CSA Metrics

CriticalHealth

CustomerExperience

Process Metric

Activity Metric

General Health Parameters

CustomerScorecard

The Panoramic View Of Metrics

S D L(customer + exceptional drivers

based on defined threshold)

BL(customer + exceptional drivers

based on defined threshold)

EXEC(key controls+

customer+exceptional driver)

WCP

WCP-1

WCP-1

WCP-2

Review Hierarchy

Below POD

All Below Set Targets

All

> 50 %Below Set Targets

Six Sigma Metrics Review Mechanism``

• An error occurs due to two reasons only• Laziness• Ignorance

• Most Persons are not lazy• Six Sigma is for helping the individual work smartly.• Use those metrics that help you in managing your process and your

customer.• Six Sigma Metrics will help you in managing your processes better but

only if you use it• Six Sigma is recognized world wide as a Smart Approach to

management• Six Sigma depends on Measurements.Infact it is a pre-condition for Six

Sigma to succeed• Measurement seems a waste of Time initially• If you choose your measure well you will manage well.• If you manage well You will Succeed• If you succeed your Company will Succeed

Finally :

zero defect

Documents

sipoc diagram

end date

le ve

start date

quick delivery

customer expectation

pilot solutions

critical path