Black Belt Leaders of team responsible for measuring, analyzing, improving and controlling key processes that influence customer satisfaction and/or productivity growth. Black Belts are full-time positions. Green Belt Similar to Black Belt but not a full-time position. Master Black Belt First and foremost teachers. They also review and mentor Black Belts. Selection criteria for Master Black Belts are quantitative skills and the ability to teach and mentor. Master Black Belts are full-time positions. Customer Any internal or external person/organization who receives the output (product or service) of the process; understanding the impact of the process on both internal and external customers is key to process management. Process Owner
Process owners are exactly as the name sounds – they are the responsible individuals for a specific process. For instance, in the legal department there is usually one person in charge – maybe the VP of Legal – that’s the process owner. There may be a Director of Marketing at your property – that’s the process owner for marketing, and for the Check-in process, the process owner is typically the Front Office Manager.
For DMAIC projects, the team leader is usually the Black Belt. For Quick Hit and iDMAIC projects, it is typically the Sponsor or Process Owner. For large DMAIC projects with more than one BB or MBB, the Team leader is the main point of contact for the project.
An active member of a Six Sigma Project team (DMAIC or iDMAIC),heavily involved in the measurement, analysis and improvement of a process. To be effective, team memberships require a minimum of 10% time commitment to a phase of the project. He/she also helps fosters the Six Sigma culture within the organization by informing /educating fellow Associates about Six Sigma tools and processes.
Transfer Team Leader (Process Owner/Department Head)
A person selected by the GM and property SIXSIGMA Council to lead an iDMAIC project based primarily on proximity and decision-making authority relative to the process involved. This person has primary responsibility for implementing the project, leading the team, and interacting with others to gather information and understanding necessary to succeed. Often, the transfer team leader will be the department head or process owner of the process being improved with the best practice. The ability to lead the team and to anticipate clear barriers are important characteristics for a person in this role.
Transfer Team Member
Associates selected by the Transfer Team Leader and Six Sigma Council to serve on the iDMAIC project based on their knowledge of key aspects of the process, experience with the current process, enthusiasm for improvement, and ability to champion change. Other key factors in selecting transfer team members include time availability and representation from relevant functions. All members will be provided training on the skills and tools used in the transfer process.
This member of the executive committee is a strong advocate of the project and can assist with barriers that may come up. He or she is accountable for the project’s success and can therefore explain to Six Sigma Council members and everyone in the property the business rationale for the transfer project and assist with cross-functional collaboration efforts. He or she will remain up to date on key aspects of the project by regularly meeting with the team leader and members.
Control Charts is a running record of the process performance. It is a recod of results of periodic sampling inspections.
A chart becomes a control chart when it has control limits based on inherent process variation. Process control limits are boundaries on a control chart within which the process can operate to a standard. These limits are based on natural variation of the process without the influence of assignable causes. each time the job is checked, the results are compared with the control limits. If the results are within the control limits, then the process is to be left alone. But if a point on a control chart falls outside the control limits, or any other indications of an out of control process, it indicates that there is some change which is happened and the process in no lnger operating normally.
In other words, Control Limits are warning singnals that tell us
1. When to take action
2. When to leave the process alone.
Taking action on a process operating within control limits is not only eneconomcal but may also increase the variation.
There are two general types of Control Charts
1. Variables Chart – This type of chart is used where a dimentsion of a charecteristin is meaeasured and the result is a value.
Popularly used Variables charts are
X-Bar – R Charts
X-Bar – S – Charts
2. Attributes Chart. – This type of chart is used where a product quality is assessed by sensory means or the data is in terms of count of defectives of count of defects.
Teh popularly used Attributes Charts are
In addition to above there are some adapations to the control charts which are a combination of the above. These are called Special Contorl Charts which will be discussed later.
The first step of any statistical enquiry is the collection of relevant numerical data. The types of data used for statistical purposes is mainly classified as primary data and secondary data
a characteristic of population that can take different values (e.g., defects, processing time).
Data are measurements collected on a variable
Data collected for the purpose of the given inquiry is called as Primary Data. These are collected by the enquirer, either by his own or through some agency set up for this purpose, directly from the field of enquiry. This type of data can be used with greater confidence because the enquirer himself decides upon the coverage of the data, definitions to be used and as such will have a greater control over the reliability of the data.
The data already collected by some other agency or for some other purpose and available in published or un published form is known as secondary data. The user has to be perticularly careful about using using such data. The user must clearly understand the nature of the data, their coverage, the definitions used for the data and their reliability.
The usage of secondary data is generally preferred if the conditions mentioned above are clear and usable. This will reduce the time taken for the analysis, also reduces cost of the analysis.
Types of data
Count or frequency of occurrence
Data which on one of a set of discrete values such as pass or fail, yes or no.
Measurements that can be meaningfully divided into finer and finer increments of precision
Usage of Sampling
The big question is weather the collection of data should be done by complete population or by sampling. If sample is used, care should be taken that this is a representative of complete population. A sample designed with care can produce results that may be sufficiently accurate for the purpose of enquiry. A Carefully designed sample can save a lot of time and money.
Methods of Data Collection
The methods used to collect data are Questionnaire Method, Interview Method and Direct Observation Method. Any one or a combination of these are used to collect data.
Usage of Data
The data collected should be subjected to a thorough scrutiny to see if they may be considered correct. The success of the analysis depends on the reliability of the data. However excellent the statistical method of data analysis may be, they cannot bring out useful and reliable information from faulty, unreliable of mistaken data. Especially, this is more applicable in case of usage of secondery data.
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Statistics can be described as a quantitative method of scientific investigations.
If used as plural noun ‘Statistics’ means the numerical data arising out of any sphere of human experience.
Used as singular ‘Statistics’ is the name for the body of scientific methods used for collection, analysis, Organizing, and interpretation of Numerical data.
According to American Statistical Association “Statistics” is the scientific application of mathematical principles to the collection, analysis, and presentation of numerical data’
Also, There is a different meaning for the word ‘Statistic’ in the field of Statistics(subject). In this sense A ‘Statistic’ is a numerical item which are produced by the some calculations using the data. Standard Deviation, Mean etc are called as ‘Statistic’ in this sense.
This is one arm of Mathematics, which is extensively used in all most every field. It has become an important tool in the work of many academic disciplines such as medicine, psychology, education, sociology, engineering and physics, just to name a few. It is also important in many aspects of society such as business, industry and government. Because of the increasing use of statistics in so many areas of our lives, it has become very desirable to understand and practice statistical thinking. This is important even if you do not use statistical methods directly.
Even with so many uses, there is some mistrust in public about the subject. This is because of the misuse of the figures by the people for their convenience. During the introduction to the course i joined on, this statement is used. There are 3 types of lies. 1 – Lies, 2- damned Lies 3-Statistics. We will teach you the 3rd part here.
Used properly statistics is a panacea for all the problems faced by the world. it can be a tremendous tool for the growth of any organization. Visit the next post Data Collection – Types of Data
Six Sigma Methodology has its origin from Motorola, has an interesting history. Sigma is Greek for the letter ‘S’, and the term ‘sigma’ has been used for many years by statisticians, mathematicians and engineers, as a measurement unit of statistical variation till it was integrated into the quality System and business strategy by Motorola in 1987.
The seeds of this concept go back to 19790 when the Japanese management took over a TV manufacturing division of Motorola. The Japanese concentrated on the quality of the output and actually reduced the defects to 5% of defects when the same unit was managed by Motorola. This result made the Motorola Management to take serious note of Quality.
The actual push came in Motorola only after 1981, When Bob Gavin became the CEO of Motorola. He targeted a 10 fold increase in performance within a 5 year period.
The Motorola Engineers Bill Smith or Mikal Harry – felt that measuring defects in terms of thousands was Not Sufficient for achieving a rigorous standard. They increased the measurement scale to parts per million, described as ‘defects per million’, which prompted the use the the ‘six sigma’ terminology and adoption of the capitalized ‘Six Sigma’ branded name, given that six sigma was deemed to equate to 3.4 parts – or defects – per million opportunities.
This has caught the eye of Gavin and launched the program Called “The Six Sigma Quality Program” on 15th Jan 1987. Stringent Targets were set to achieve Six Sigma Capability in 5 years. Astronomical Targets like 10 fold increase by 1989, and 100 fold increase by 1991 and Six sigma capability by 1992. A deep Sense of urgency was shown and every part of the organization was made to obsess with Six Sigma.
Soon after the success of Motorola, Allied Signal ( Now a part of Honeywell) plunged into this concept and achieved success.
The biggest push to Six-Sigma was given by Jack Welch the CEO of General Electric (GE) in 1995. He believed the possible improvement that can be achieved by this change and imbibed into the culture of the company. There were rewards, targets and training which were incorporated. By 1998, GE Reported a savings of more than three quarters of billion in profits.
By the year 2000, Six Sigma was effectively established as an industry in its own right, involving the training, consultancy and implementation of Six Sigma methodology in all sorts of organizations around the world.
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This is a general question asked especially when Six Sigma approach is used for Improvement is what is supposed to be my improvement goal for Six Sigma Project. In cases where the project is taken up for Problem Solving, the goal setting is straight forward. In this case the goal is to solve the problem. (or Meet the Requirements)
However, it is very tough in case of Improvement Projects. Various methods are available for setting the goal. However, there is some pre work to be done in this case.
1. Collect all the metrics which are generated f
rom the process you want to improve, (Example – Delivery rate, Quality, Defects, Customer Satisfaction, Effort ……)
2. Prioritize and identify the Primary Metric. Primary could be anything where you can improve upon. (Start with what is important to customer)
3. Baseline the Primary Metric and its relation with the secondary metrics. (This is needed to know what will happen when your primary metric moves and optimize the goal setting.)
Now the billion dollar question ” How much we should set the target” “How much we can Improve” ” How much improvement we Need”. There are no standard set of rules for setting improvement goals. However, below are few guidelines.
As a minimum, the goal shall be set in such a way that the difference between the current performance and the goal is statistically significant.
The goal must be in line with the business expectations and the improvement shall be a breakthrough one instead of incremental one. a 5% improvement is incremental but 50% improvement is Breakthrough
The goal shall take you towards the benchmark for the same process performance. Ideally the benchmark need to be considered is the industry best practice.
The goal need to cover the gap between the entitlement and the current performance by atleast 70%. Entitlement is the performance which is expected for the investments already made or the best capability of the process internally.
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For having a Clear and Very good Project Charter, the following Components are very important. A clear understanding of the problem will help not only to build the business case to be presented, but also quickly arrive at solutions. A Problem well understood by all the stakeholders is half resolved.
The Key components of a charter are
· A Clear and un ambiguous Problem Statement.
· A Clearly defined and reachable goal to resolve or in the direction to resolve the problem
· A Business Case, stating the benefits which can be achieved by resolving the problem.
Let us first discuss the Problem Statement. It is a Known proverb that if understand the problem clearly, you are half way to the solution. A Good problem Statement shall address the following.
· What is the process that is involved?
· What is wrong?
· What is the gap / opportunity?
· Where do we see the problem / gap?
· What is the period for which we looking at?
· When do we see the problem / gap?
· How big is the problem /gap/opportunity?
· What are the limits it is impacting and by how much
· How will we measure it?
· What is the impact of the problem /opportunity?
· What are the benefits of the action /consequences of inaction?
Problem Statement – Example
For the period from Jan 2013 to Jun 2013 (When), the Average Fuel Consumption (What) of all the Luxury service buses is at 4.3 KMPl against a target of 6 KMPL (size). This has resulted in a loss of 700000 INR (Impact).
Key Considerations / Potential Pitfalls
· Is the problem based on facts or assumptions?
· Is data available or can be collected to verify and analyze the problem?
· Is a solution included or implied in the statement?
· Would customers be happy if they knew we were working on this?
· Does the problem statement prejudge a root cause?
· Is the problem statement too narrowly or broadly defined?