03 Jan

Six Sigma

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Six Sigma is a methodology to improve the process, reduce the defects,…… in a project based approach.

Technical Definition: Distance between Mean and UFL is six time standard deviation.

Seven Basic Tools

  1. Histogram
  2. Fishbone
  3. Control Chart
  4. Checklists
  5. Scatter Plot
  6. Stratification
  7. Pareto


DEFINE – Set direction for improvement.

  1. Customer CTQ – Measurable characteristic of Voice of Customer. (Critical to Customer)

    Know the customer needs and identify their key process requirements. (Using KANO)

    1. Identify Customers
      1. Identify Customers
      2. Define Customer Segments
      3. Prioritize Customer Segments
    2. Voice of the Customer
      1. Review Existing customer Data
      2. Decide what to collect and how
      3. Collect Data
    3. Define the CTQs
      1. Consolidate/ Organise all customer data
      2. Translate VOC to specific needs and to CTQs
      3. Prioritise CTQs
      4. Validate with Customer

      An example of a CTQ:

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  1. High level view of the process (SIPOC) – Eagle or Bird Eye view of the process.
    1. Supplier – The provider of inputs to your process
    2. Input – Materials, resources or data required to execute your process
    3. Process – A collection of activities that takes one or more kinds of input and creates output that is value to the customer
    4. Output – The products or services that result from the process
    5. Customer – The recipient of the process output.
  1. Formalize the charter (Project Charter)
    1. Problem Statement – Should have following elements:
      1. Where is the problem
      2. Since when is the problem
      3. What(how) is the problem
      4. Impact of the problem

An example of a Problem Statement: In XYZ company(i), for past two years(ii), the size of the flats built is 1000 SFT which have a target of 1200 SFT(iii), due to which the customers are dissatisfied and revenues are dropping(iv).

    1. GOAL Statement – Should satisfy  SMART objectives, should start with “TO”, followed by verb (CTQ),  timeframe

An example of a Goal Statement: To increase the size of the flat from 1000 SFT t0 1200 SFT by March 2011.

    1. Estimated Financial Opportunities
    2. Scope – Lateral and longitudinal.

MEASURE – Collect Reliable data to understand current process performance.

ANALYSE – Identify problem’s root causes through process and data analysis.

IMPROVE – Determine new improved process design.

CONTROL – Ensure improvement effectiveness over time.

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