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INTRODUCTION TO HALF A DOZEN SIGMA CONTENT FLOW…? Understanding Six Sigma? Definition? Community at Six Sigma illustrations? Six Sigma Scale? So why Six Sigma? Six Sigma Methodologies , Tools? Specify? Measure? Assess? Improve? Control WHAT’S WITHIN A NAME? Sigma is the Ancient greek language letter symbolizing the standard deviation of a population of data.? Sigma is a measure of standard deviation (the info spread)?? HALF A DOZEN SIGMA IS …? A statistical idea that measures a process regarding defects – at the half a dozen sigma level, there three or more. 4 problems per mil opportunities?

A defect is definitely anything that results in customer discontentment Six Sigma is a methodology and synonymous with quality? HOW OFTEN ARE WE DELIVERING IN TIME? If the target time is usually 30 A few minutes, the charts below show two figure with common at twenty-five Mins 40 mins 31 mins s s zero 10 back button 30 2 sigma 20 40 50 0 twelve 20 by 30 4 sigma 45 50? How many standard deviations could you “fit” within just customer objectives? Managing by average will not tell the full story.

The regular and the deviation together demonstrate what’s occurring. MANAGING IN THE SIGMA SCALE Sigma you 2 a few 4 your five 6 % Good % Bad 40. 9% 69. % 93. 3% DPMO 691, 462 308, 538 66, 807 69. 1% 30. 9% 6. 7% 99. 38% 99. 977% 0. 62% 0. 023% 6, 210 233 a few. 4 99. 9997% 0. 00034% SAMPLES OF THE SIGMA SCALE In a world in 3 sigma…? In a community at six sigma…? You will find 964 U. S. air travel cancellations every day. The police make 7 false arrests just about every 4 mins. 1 U. S. airline flight is terminated every 23 days. There are fewer than 4 bogus arrests monthly.?? In one hour, 47, 283 international long distance calls are inadvertently disconnected.? It would take much more than 2 years to find the same quantity of dropped worldwide calls.

SO WHY SIX SIGMA? • For GE, Half a dozen Sigma added more than money 2 billion dollars to the final conclusion in 1999 exclusively • Motorola saved much more than $ 12-15 billion in the first ten years of it is Six Sigma effort AlliedSignal reports keeping $ you, 5 billion through 6 Sigma. • • Half a dozen Sigma is all about practices that help you eliminate defects and deliver product or service that fulfill customer technical specs How are these kinds of savings noticed? cost of scrap? cost of remodel? cost of excessive cycle times and gaps? Benefits of added capacity and man-hours

DMAIC – THE IMPROVEMENT METHODOLOGY Determine Objective: DETERMINE the opportunity Measure Analyze Increase Control Target: Objective: Objective: MEASURE current ANALYZE the main IMPROVE the functionality causes of challenges process to get rid of root triggers Key Assess Tools: • Critical to Quality Requirements (CTQs) • Sample Program • Ability Analysis • Failure Methods and Result Analysis (FMEA) Key Analyze Tools: • Histograms, Boxplots, MultiVari Chart, etc . • Hypothesis Checks • Regression Analysis Target: CONTROL the method to maintain the gains.

Important Define Tools: • Expense of Poor Quality (COPQ) • Voice of the Stakeholder (VOS) • Project Charter • As-Is Process Map(s) • Primary Metric (Y) Key Improve Key Control Tools: Tools: • Remedy Selection • Control Chart Matrix • Contingency • To-Be Procedure and/or Action Map(s) Plan(s) DEFINE – DMAIC TASK WHAT IS THE PROJECT? $ Project Hire Cost of Poor Quality Stakeholders Words of the Stakeholde r Six Sigma What is the problem? The “problem” may be the Output? What is the cost of this issue? Who are the stake slots / decision makers?

Line-up resources and expectations? DETERMINE – CLIENT REQUIREMENTS EXACTLY WHAT ARE THE CTQS? WHAT MOTIVATES CUSTOMER? SECONDARY RESEARCH Market Data THE Voice from the Customer Essential Customer Concern Critical to Quality Hearing Posts Industry Intel Industry Benchmarking Customer satisfaction Customer Correspondence PRIMARY EXPLORATION Survey t OTM Observations Focus Organizations MEASURE – BASELINES AND CAPABILITY WHAT IS OUR CURRENT LEVEL Sample some info / only some data Current Process actuals measured up against the Customer requirement OF PERFORMANCE?

Descriptive Statistics Variable: the year 2003 Output Anderson-Darling Normality Evaluation A-Squared: P-Value: Mean StDev Variance Skewness Kurtosis And Minimum first Quartile Median 3rd Quartile Maximum 0. 211 zero. 854 23. 1692 15. 2152 104. 349 0. 238483 zero. 240771 90 0. 2156 16. 4134 23. 1475 29. 6100 55. 2907?? What is the opportunity that we will certainly succeed only at that level each time? 0 10 20 35 40 40 95% Self confidence Interval pertaining to Mu 95% Confidence Span for Mu 21. 1423 19. your five 20. your five 21. your five 22. 5 23. five 24. 5 25. five 26. a few 25. 1961 95% Confidence Interval to get Sigma 8. 690 11. 8667 95% Confidence Interval for Median 95% Assurance Interval pertaining to Median nineteen. 7313 26. 0572 EVALUATE – AUTHENTICATED ROOT CAUSES WHAT ARE THE REAL KEY ROOT CAUSES? Experimental Style Data Stratification Regression Analysis Process Simulatio n Half a dozen Sigma sumado a = n (x1, x2, x3… xn) Critical Xs IMPROVE – POTENTIAL ALTERNATIVES HOW CAN WE ALL ADDRESS THE FUNDAMENTAL CAUSES IDENTIFIED? WE Addresses the causes, not really the symptoms. Generate Examine Clarify Decision y sama dengan f (x1, x2, x3… xn) Essential Xs Divergent | Convergent IMPROVE – SOLUTION SELECTION

HOW DO WE SELECT THE RIGHT SOLUTION? Solution Selection Matrix Qualit y Solution Sigma Time CBA Other Credit score Time Price Six Sigma Solution Right Wrong Rendering Good Negative O Wonderful Idea Wonderful Try By Solution Implementatio n Strategy CONTROL – SUSTAINABLE BENEFITS HOW DO WE “HOLD THE GAINS” OF OUR FRESH PROCESS?? Some variation can be regular and OK How High and Low can an “X” get yet not materially effects the “Y” Pre-plan procedure for control exceptions Immediate Process Customer: CCR: Date: Measuring and Monitoring Mortgage Service Administrator? Process Owner: Process Information:

Process Control System (Business Process Framework) Flowchart Client Sales Digesting Branch Manager Key Evaluate ments P1 , activity duration, minutes. Specs , /or Goals Measures (Tools) Responsibility A contingency Where , (Who) (Quick Fix) Frequency 35 Remarks UCL=33. forty eight Review appliation for completeness P2 , # of incomplete loan requests Individual Value Apply for loan 1 . you Application , Review 25 Complete meeting information Mean=24. 35 Zero Application Complete? 1 . a couple of Processing 1 ) 3 Credit rating review 12-15 0 12 20 35 LCL=15. twenty-one 1 . a few Disclosure 1 . 4 Assessment Observation Amount