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Six Sigma Green Belt Certification Workshop

LECTURE 5: Organizational Goals and Six Sigma Projects

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ASQ Body of Knowledge I.A.3

I. Overview: Six Sigma and the Organization
A. Six Sigma and organization goals
3. Organizational Goals and Six Sigma Projects

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Aim of Six Sigma Projects

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Aim is to achieve the metric of 3.4 DPMO or

99.999966% quality for all critical processes

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But how?

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By proper management system and

organisation of apex council,
champions, black belts, green belts
and teams

&

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These teams select problems

organisation wide and solve it using
DMAIC approach to achieve 3.4
DPMO or 99.999966% quality

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Project as Problem Solving Methodology

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Operations Manager of some XYZ company was facing some routine problems at two
different dimension; problems at home and at factory.

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Problems at home: studies

of children, going for
vacation, completion of
house construction

Problems at factory:
machine breakdowns,
rejections, customer
complaints..

Problem solving: simple, take decision

yourself or with consensus of family. No
complicacy or much data collection required.

Problem solving: complex, need to inform Factory

Manager, CEO. Much data collection involved, team
work required. Need a structured problem solving
approach.

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Six Sigma projects are the problems assigned to a team for solving

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Structured Problem Solving (DMAIC)

Define

Measure

Analyse & Improve

Control

Roughly work out the

impact in monetary
terms
Define problem & put
up to Manager/CEO in
a charter
If CEO sees the
viability, he approves to
solve the problem,
allocates resources and
team members
Problem and mission
are communicated in a
statement
You are given authority
to go ahead with the
problem

Team measures the

current state of problem
and find out base
performance measure
The process is studied
with process flow
mapping
Team identifies the
factors that causes the
problem by
brainstorming
Analyse the
measurement system
and collect data
Identify critical input
and process
parameters that causes
variation

Critical input and process

parameters are analysed
with the help of Pareto
graph, histogram, FMEA,
Fish bone, why why
analysis etc to find out the
root causes that lead to
problems and validate
Team brainstorm
solutions, rank the
solution, evaluate it and
plan for implementation

Check whether the

solutions worked or not
Put control measures
like control charts,
training, motivational
rewards, in order to
sustain the gains.

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Selecting the right project

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Brainstorm problems

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Calculate impact in
money terms

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Prioritise based on
impact

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Identify project priority

index (PPI)

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Select project based on
(PPI)

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Project Priority Index (PPI)

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PPI for a project is calculated based on:

Estimated saving (S) by solving the particular problem
Initial and recurring cost of solving the problem (C)

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Time (T) to complete the project

Probability (P) of solving the problem successfully
Savings (S)
PPI

Cost (C)

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Probability (P)
X

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Time (T)

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PPI Example

Project

Potential
savings (S)

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Cost to
complete (C)

Probability of
success (P)

Time to
complete (T)

PPI

Lead time
reduction

2 lacs

1.5 lacs

60%

.75 years

1.06

Rework
reduction

9 lacs

3 lacs

70%

.3 years

Inventory
reduction

60 lacs

5 lacs

65%

.5 years

15.6

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Based on PPI inventory reduction project will be selected first

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