Training Slides - Lean Six Sigma Black Belt - Offered by VINDATI

Lean Six Sigma- Black Belt
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Presentation Layout !!!
 What is Quality
 Six Sigma: An overview
 What is Sigma and Six Sigma
 DMAIC, DMADV and DFSS
 Basic Statistics
 Normality Concept
 Ways to commence a project
 Define
 Project Charter
 SIPOC
 Measure
 Process Capability
 MSA
 Analyze
 Identification of X’s
 Hypothesis Testing
 7 Tools of Quality
 Improve
 Improvement Plan
 FMEA
 DOE
 Control
 Control Plan and Control charts
 Other used Concept in Six Sigma
 Introduction to Minitab
 Case studies and dummy project
Lean Sigma
 What is Lean Sigma
 Difference between Lean and Six Sigma
 Different type of waste
 5 Principle of Lean
 5 why’s
 5S
 Poke Yoke
 Gemba Walk
Six Sigma – Different level of Belt
Master Change Management Leader.

Drives changes, creates a culture of
continuous improvement within the
Black Belt organization
Expert in LSS Knowledge and

Skills, capable of supporting Green
Black Belt Belts as mentors and coaches
Knowledge/Skills in supporting
Green Belt LSS project, support Black Belt
Yellow Belt “Light” knowledge of LSS

terminology
Quality
 What is Quality?
 Totality features of any product which are capable of

satisfying customer need
 Do the Right thing and do the thing right every time
 American Society of Quality defines quality as “

Characteristics of a product or service that can satisfy
customer stated/specified and Implied/indirect needs”
 Mathematical Equation of Quality
 Quality = Performance / Expectation
Cost of Quality
Quality affects all aspects of the organization and has dramatic cost implications. The most obvious consequence
occurs when poor quality creates dissatisfied customers and eventually leads to loss of business.
However, quality has many other costs, which can be divided into two categories
The first category consists of costs necessary for achieving high quality, which are called quality control costs.
These are of two types: prevention costs and appraisal costs
The second category consists of the cost consequences of poor quality, which are called quality failure costs. These
include external failure costs and internal failure costs
Type of Cost Details

Prevention Cost Cost of preparing & implementing a quality plan
Appraisal Cost Cost of testing , evaluating & inspecting quality
Interval Failure Cost Cost of scrap , rework & material losses
External Failure Cost Cost of failure at customer site , including returns, repairs & recalls
Cost of Quality
Prevention Costs
Appraisal Costs
Quality Planning
Source Inspection
Process Evaluation
In/End-Process Inspection
Quality Improvement Meetings
Calibration
Quality Training
Cost of Quality
Internal Failure Costs External Failure Costs
Rework/Correction Complaint Handling

Re-Inspection Rework/Correction
Internal reject
Meaning of “Sigma”
 The term Sigma is used to show distribution or Spread about the mean
 Sigma is a Symbol which shows the degree of variation in a process (standard

deviation)
Six Sigma History
Six Sigma was developed by Bill Smith, He is known as father of Six Sigma
Motorola was the first Company to instigate the Six Sigma breakthrough Strategy. It's implementation begin
In Motorola in 1987
Motorola recorded more than $16 Billion savings as a result of Six Sigma
In early 1980’ Motorola was facing a serious competitive challenge from Japanese Companies. Motorola was losing
the market share and customer confidence
Motorola had not done any major changes to their products
The competitors from Japan were offering much better product at much lower price with no field failures
Motorola requested to the competitors from Japan to permit the Team from Motorola to visit them for study. Motorola
sent the team of managers to Japan to study the “Magic” of Japanese companies
Six Sigma History
What Motorola learning was as follows:
 The internal defect rate was very high inside Motorola
 The rework and repair rate was high at Motorola
 The reliability was low since some of the defects were passing on to the customer as inspection lapses
 A dissatisfied customer was shouting loudly and was taking away min 10 potential customers
 As an effect of this, customers were lost to the competitors
By controlling the cost of rework and by training the employees, it was able to produce defect free
Six Sigma History
Bob •CEO
Galvin Motorola
Bill •Father of Six

Smith Sigma
Where can Six Sigma be applied?
Purchase
Supply
Production
Chain
Six
Sigma
HRM IT
Operations Finance
Companies using Six Sigma
Six Sigma
Lets begin with Medical Analogy
What is Six Sigma
 Six Sigma as a Problem Solving Methodology
• Y=f(x)
Y = F (X)
Relationship
Output that explains Y Process
measure in terms of X variables
 Where Y represents the key process outputs (the end product)

 X represents key process inputs that strongly affect the output
 Function (“F”) represents the relationship between the inputs and outputs
These can be identified based on your experience with the process. Process and
Domain experts must be included for Brainstorming
Six Sigma
 Six Sigma as a Metric
 Six Sigma is used as a common yardstick of measurement for business processes
 Six Sigma as a Management System
 Three Framework for process improvement namely DMAIC, DMADV and DFSS
DMAIC, DMADV & DFSS
DMAIC DMADV DFSS
Define Define Design

Measure Measure
For
Analyze Analyze
Six
Improve Design
Control Verify Sigma
For Mature Process, when you

are close to 4- 6 Sigma
For Existing Process For
For New Business Process
Improvement Cost of business is high
hence automation is required
Expected Results From Six Sigma
Improved Customer Satisfaction
Reduced Cycle Time
Increased Productivity
Reduce total defects / Errors
Decrease work in progress
Improve process flows
Six Sigma
Sigma DPMO Yield %
3s 66,800 93.32%
4s 6,210 99.35%
5s 230 99.97%
6s 3.4 99.99966%
Type of Data
Continuous Data
Data which can be broken down into smaller parts and which will still make sense. Data which can be measured
 Time
 Price
 Height
 Weight
 Temperature
 Distance
Type of Data
Discrete Data
• Data which cannot be broken down. All type of data other than Continuous data is Discrete data
Type of Discrete Data
 Binomial Data: Yes/No , True/False , 0/1 , Pass/Fail
 Count: Which can be counted

 e.g. 1, 2, 3, 4……..
 Nominal Data: Data which have names or labeled

 e.g. Dept A, Dept B, Dept C
 Ordinal: Data when arranged in some order or sequence

 e.g.
 Excellent, very good, good, fair, poor
 Strongly agree,disagree,strongly disagree
 Cold,mild,hot,very hot
 Percentage: Data which can be defined in Percentage
Statistics
The Science Of Data

Understanding
Why ?
 Collection, Organization and
Interpretation Of Numerical Data
Purposes AND
Decision
Making
Central Tendency
Tightness of data around the central point, how tightly data cluster around center
3 Most common Measure of Central Tendency
Mean : Arithmetic average of a set of data
Mean= Total Value / Number of Value
Questions:
1) Please calculate Mean for the given set of data points: 92, 82, 30, 99, 119, 36, 93, 41, 41, 117, 97, 174
Mean
 On a very hot and humid day you are walking through the jungle. You come across a
lake where a board says average depth of 4 feet. You want to pass the lake. Will you
pass?
Mean
Mean
Why did this happen ?
We may make a big mistake only because

we make decision based on just average
 So, we need additional information on variation
 Data which expresses variation we call “ Standard Deviation., Using Greek Alphabet, ó (Sigma) represent the
standard deviation.
Mean
Why isn't the average alone, good enough ?
Total transaction Total transaction

Month-wise for A Month-wise for B
7.95 Target = 6 6.10

4.05 5.90
6.95 6.05
5.05 5.95
6.00 6.00
We need a way to quantify the “spread” in the data
Central Tendency
Median
 Median gives us the positional value when arranged in ascending or descending order
Median= (N+1)/2 th item
Questions:
1) Please calculate Median for the given set of data points: 97, 33, 28, 181, 47, 149, 151, 72, 139, 187, 28, 97
Central Tendency
Mode
 The mode of a set of data is the most frequently observed value
Questions
1) Please calculate Mode for the given set of data points:97,8,8,9,14,13,17,56,23,12,14,15,67,65,45,68,8,9,8,8,8
2) Please calculate Mode for the given set of data points:9,8,8,9,14,13,17,9,23,12,14,15,9,67,65,45,68,8,9,9,15,98
E.g. in shoe Industry, in Cloth manufacture industry
Measure of Spread
The Extent/ Amount to which the observations in a sample or in a population vary about their mean is
known as a dispersion or spread
Main Measure of Dispersion
Range, Standard Deviation, Quartile
 Range: Range is defined as difference between maximum and minimum value.
 Its tell us about the total spread of the observation
 Range is based on two extreme observations
 It gives no weight to the central value of the data
Group A: 30,40,40,40,40,40,50
Group B: 30,30,30,40,50,50,50
Group C: 30,35,40,40,40,45,50
Measure of Spread - Range
Range
Questions
1) Please calculate Range for the given set of data points: 131, 188, 184, 72, 64, 87, 39, 171, 158, 57, 56, 187
Measure of Spread - SD
Standard Deviation
 Standard deviation is the average distance of all the data point from mean
x x
n 2
i
s i1
n1
Questions
1) Please calculate Standard Deviation for the given set of data points:
97, 30, 178, 41, 1, 60, 41, 100, 166, 121, 64, 96
2) Please calculate Standard Deviation for the given set of data points:
91, 52, 154, 9, 141, 72, 192, 31, 131, 129, 135, 90
Measure of Spread - Quartile
 Quartile:- Data can be divided into four regions that cover the total range of observed values. Cut
points for these regions are known as quartiles
Quartile comes from Quarter

 Q1= ((N+1)/4 )th item
 Q2= (2(N+1)/4 )th item, Q2 is always median in the data.
 Q3= (3(N+1)/4 )th item
25% 25% 25% 25%
Q1 Q2 Q3
 The first quartile, Q1, is the value for which 25% of the observations are smaller and 75% are larger
 Q2 is the same as the median (50% are smaller, 50% are larger)
 Only 25% of the values are greater than the third quartile
Quartile Measures Guidelines
 Rule 1: If the result is a whole number, then the quartile is equal to that ranked value
 Rule 2: If the result is a fraction half (2.5, 3.5, etc), then the quartile is equal to the average of the corresponding ranked values
 Rule 3: If the result is neither a whole number or a fractional half, you round the result to the nearest integer and select that
ranked value
Measure of Spread - Quartile
Questions
1) Please calculate Quartile 1 for the given set of data points: 92, 43, 162, 144, 16, 127, 129, 5, 112, 115, 35, 128
3) Please calculate Quartile 3 for the given set of data points: 177, 17, 197, 103, 160, 31, 194, 112, 197, 160, 23
General Descriptive Stats Using Microsoft Excel
1. Select Tools.
2. Select Data Analysis.
3. Select Descriptive Statistics

and click OK.
4. Enter the cell range.

5. Check the Summary
Statistics box.
6. Click OK
Microsoft Excel
descriptive statistics output,
using the house price data:
House Prices:
$2,000,000
500,000
300,000
100,000
100,000
Box Plot
 Variation within and between samples
 Used to indicate the distribution with Median and Percentiles
 Height of the 2 whiskers is similar, the data is equally distributed around the mean.
Outlier – An
unusually large
3rd quartile -75% of or small
the data values are less observation.
than or equal to this
value Whiskers – The Lowest
and Highest values
Median – the
middle value of the
data. Half of the
observations are
less than or equal to
it
1st quartile -25% of the

data values are less than or
equal to this value
5 Step Methodology
D
(Define)
5 Step Methodology, also C M

known as Process improvement (Control) (Measure)
I A
(Improve) (Analyze)
Six Sigma Activities
Measure Improve
• Sales Pitch + • Brainstorming • You would

Anticipate and Identify identify control
questions from potential plan to ensure
stakeholder causes that success is
and try and • Data Collection • In order to sustained
• Built action
answer them plan around convert • Statically check
plan to Improve
• Problem your project Y potential X’s your X’s if your process
Statement • Operational into confirmed is within
• Built check and
• Goal Statement Definition ones,we would control (Both Y
measures to
be doing and X’s)
• Actual data see that you
• Do not tell collection Hypothesis are successful
causes and give testing
• Validate data • Implement
solutions • Process • Check if
capability (Z Implementation
and DPMO) has resulted in
Improvement
Define Analyze Control
Six Sigma Tools
Coming to Work
8.50 8.55 9.00
8.55 a.m. +/- 5 minutes.

This man wants to reach his work place by 8.55 a.m.. But he is unable to do so exactly at 8.55 a.m. everyday.
Sometimes he reaches earlier (but almost never before 8.50 a.m.). Sometimes he reaches later (but almost never
after 9.00 a.m.).
WHY ?
This is Because …
Of Certain Factors which
 Affect the time he takes
 He cannot control
 Vary randomly
e.g. The traffic he encounters under normal course of travel
The variation that occurs due to these kind of factors is called inherent variation or common cause variation.
Maximum deviation
Inherent
Variability
Aimed value (Common Cause
Variation)
Minimum deviation
Coming to Work
TODAY HE IS EARLY! WHY?
PROBABLY BECAUSE :
 His watch was running fast.
 He got a ride.
 His Bus Driver took a shortcut.
 He stayed over at a friend’s nearby.
 He had some important work to be finished
before 9.30.
8.30 These causes are characteristic of a specific

circumstance and do not occur in the normal
scheme of actions.
Variation due to these types of reasons is called

assignable or special cause variation
Coming to Work
TODAY HE IS LATE! WHY ? PROBABLY BECAUSE :
 He overslept.
 He missed the Bus.
 The Bus Driver was new & took some
other route
 He stayed over at a friend’s far away
These causes are characteristic of a

9.20 specific circumstance and do not occur in
the normal scheme of actions.
Variation due to these types of reasons is

called assignable or special cause variation
Two Types of Variation
Common Versus Special Causes
Type of Variation Characteristics
# Lots of causes
Always Present
# Each with very little effect
Common Cause Expected
# Difficult to identify
Normal
# Difficult to eliminate
# Few causes
Not Always Present
Special Cause # Few with large effect
Unexpected
# Easier to identify
Not Normal
# Easier to eliminate
Why is Knowing Variation Type Important?
Helps decide the improvement strategy
 Tells us whether the process is stable or unstable
 A process under the influence of special cause variation is said to be stable or unstable
 A process under the influence of common cause variation is said to be stable
 An unstable process leads to customer dissatisfaction
Themes/ Ways to Commence a Project
 VOC - Voice of the Customer
 Customer Complaints
 Customer Escalation
 VOB - Voice of Business

 Attrition
 Absenteeism
 Cycle time reduction
 Repeated Errors
 RTY - Rolled Throughput Yield

 When one process acts as input for another process.
DEFINE MEASURE ANALYZE IMPROVE CONTROL
Define
Define phase of six sigma is essential a sales pitch which we put together to get the stakeholder buy in. We
anticipate all the questions which the other person might ask and try to answer those questions
Define
Identify Customer Develop Define

& Project CTQ’s the Project Charter Process Map
Define- Type Of Customers
Internal customer who utilize your product or service as an input to

Internal their to deliver output for the next internal customer or the external
customer
Customers
An internal customer can be a co- worker, another department etc.
Are those who use your end product or service

External
Customers External customers have choice, and if they don’t like our product or
service can take their business elsewhere
Define – Ways to collect VOC
Customer
Surveys Past Complaints
Observation
Competitive
Interviews Listening Posts
Comparison
Web site of
Be A Customer Social Media organization
Kano Analysis
 Kano Analysis is credited to Dr. Noriaki Kano, a professor at Tokyo Rika University
 Kano analysis is a technique for interpreting and prioritizing the Voice of the Customer (VOC)
Failures to collect requirements is the largest single factor in

project failures. The Kano analysis add very important tool to a
company's resource.
Kano Analysis
What types of needs are there?
Dr. Kano claimed that there are 3 types of customer needs:
 Surprise and Delight – These really make your product or service stand out from the others
 Neutral – Without this, you'll never sell the product
 Dissatisfier – This one causes your customers to feel dissatisfied
“I can’t believe this is “Oh no, not another “Hey, this is pretty “Awesome!”
happening.” transfer.” cool.”
Kano Analysis
The Kano mode:
Satisfied
Customer
Cannot do, Can do, or

or feature is feature is
missing included
Excitement Need
? Performance
Need
UNFULFILLED FULFILLED
Basic
Need
Dissatisfied
Customer
Define - VoB & VoE
In addition to the Voice of the Customer (VoC), there are two other groups that we
need to consider
Voice of the Business (VoB)

Needs and expectations of the people who run the business itself
e.g., shareholders, officers, and others involved in corporate
governance and strategy development.
Voice of the Employee (VoE)

The needs and expectations of the people executing the strategy
and delivering to the customer are critical as they are on the front
lines.
Define- Project Charter
Project Charter
Document that provide framework and objective clarifies what is expected out of the project
Activities which are performed under Project Charter
 Problem Statement
 Goal Statement
 Scope
 Milestone
Define – Problem Statement
If I had one hour to solve a problem, I’d
spend 45 minutes thinking about the
problem and 15 minutes looking for
solutions.
Albert Einstein
Problem Statement
One good problem statement should answer the wh- Questions
 What is wrong or not meeting our customer need?

 Whom is it impacting
 What is the impact of the problem
Should NOT Answer

 Potential Cause
 Potential Solutions
Define - Good Problem Statement
Is Not:
A Problem Statement Is
 Potential solution in the statement
 A brief statement of the problem to
 Prejudge a Potential causes
be solved, the magnitude of the
problem, and the impact of the  Speculation or based on an assumption
problem on the business
Is this a good or a poor problem
 A preliminary assessment of statement?
current state situation that is to be
validated by the project team / Our Customers are angry with us
stakeholders and late in paying their Bill.
Improved Example:
In the last 6 months 20% of our Repeat Customers – not first timers – are late, over 60 days Paying our invoices .
The current rate of late payments is up from 10% in 2014 and represents 30% of our outstanding receivables.
This negatively affects our operating Cash flow.
Define - Problem Statement -Case
Create a Problem Statement
The Toronto Underwriting office has started to notice that over the last 6 months the average turn around time for
processing life insurance applications has grown by an estimated 7 days.
Upon investigation it is determined that many applications for life insurance are being half-completed and that
incomplete information is generating a callback to the advisor to gather the required data so that the underwriter can
make an accurate determination on coverage.
Advisors are becoming frustrated with the process as it is leading to delays in the approval of life insurance for their
clients.
Problem Statement Created
We are experiencing a problem with incomplete life insurance applications. It is occurring for the last 6 months .
It is a problem for underwriters because without the information they can’t make an accurate determination on
coverage. It is causing underwriters to follow up with advisors and is causing 7 day delays in application approvals
and causing frustration for advisors.
Define - Goal
Goal Statement
Desired result which we want to achieve on the completion of a project
Goal Statement should always be SMART
 Specific: Clearly defined and easy to understand/ objective
 Measureable: Easy and cost efficient to measure
 Attainable: Influenced by the team
 Relevant: Links to overall business strategy/targets
 Time Bound: Captured at specific intervals
Define - Milestone
Mile Stones
 Reference point marking major events in a project

 High level project plan with dates
 Typically dates of completing DMAIC phases
 Aggressive but realistic
Miles Stones Tentative Start Date Tentative End Date
Define 27-Jun-20 9-Jul-20
Measure 10-Jul-20 25-Jul-20
Analyze 26-Jul-20 25-Aug-20
Improve 26-Aug-20 10-Oct-20
Control 11-Oct-20 10-Nov-20
ARMI Model
Tool which is used by the project leaders to identify the role and responsibility of the team
Approval :Approval of the team decisions / whose approval is required for running the project successfully
Resource : One whose expertise, skills may be needed on ad hoc basis
Member : Member of the team, with the authorities and boundaries of the charter
Interested Party: One who will need to be kept informed on findings

Define - Process Mapping
Process Mapping
Sequence of activities arranged in order of their occurrence
Benefits of Process Mapping
 Can reveal unnecessary and complex steps in a process
 This makes it possible to simplify & trouble shoot
 Can compare actual processes against the ideal
Levels Of A Process
Acquire New
L1
Business
Core
L2 Business Obtain Request to Conduct Prepare Initialize

Buy Service Underwriting Contract Customer Service
Processes
SIPOC Establish Prepare Negotiate Close

S Terms Docs Contract Deal
C
Detailed
Subprocess Map
Versions Of A Process
What You Think It Is... What It Really Is.. What It Should Be... What It Could
Be...
Define - Process Mapping- Swim Lane
Deployment Or Cross-Functional Flowchart
Who
Customer Sign File

Negotiate Contra Contra
ct ct
Contract Revise Revise File

Initiate Negotiate
Admin. Contra Contra Contra
Call ct ct ct
Attorney Review
Review Contra
Contra ct
ct
Write File
Dealer Contra Contra
ct ct
PROCESS FLOW
Define - Harvesting the Fruit
“Sweetest Fruits” at the top

Breakthrough
DFSS, Innovation/R&D
Zone 4
--------------------------------
Zone 3 Bulk of Fruit

DMAIC (LSS)
--------------------------------
Entitlement
Low Hanging Fruit

Work Outs, Kaizen
Zone 2
--------------------------------
Ground Fruit
Zone 1 Just Do It , Process Establishment
ELIMINATE: VA vs BVA vs NVA
Value Added Work
Non Value Added Work
Any activity that adds value
An activity that does not add
from a Customer perspective,
value from the Customer’s
is done right the first time
and Business perspective
and transforms the
data/information
The Goal: Eliminate

waste and right-size
the amount of time Business Value Added Work
required for business An activity that adds no value
value-add steps from a customer’s perspective but
is required to operate the
business, based on the current
business set-up/operating model
Define - SIPOC
SIPOC/COPIS are an acronym for Supplier-Input-Process-Output-Customer
When you are planning to start a Six Sigma project, its very important that you get high level
overview/understanding of the scope of the process. It help in making sure that each and everyone who so ever is
involved in the project has same understanding of the process
It gives helicopter view of the process to the stakeholder
Supplier Input Process Output Customer
• Customer — Whoever receives the output of your process. Can be internal or external
• Output — The material or data that results from the operation of a process.
• Process — The activities you must perform to satisfy your customer’s requirements.
• Input — The material or data that a process does something to or with.
• Supplier — Whomever provides the input to your process
Define – Charter Sample
Sample Project Charter
Define – Role & Responsibility
Black Belt
A Six Sigma expert highly skilled in the application of rigorous statistical tools and methodologies to drive
business process improvement
Champion
The Champion typically has day-to-day responsibility for the business process being improved and their role is
to ensure the Six Sigma project team has the resources required to successfully execute the project
Green Belt
A Six Sigma practitioner trained in the methodology and tools to need to work effectively on a process
improvement team. Green Belts may act as team members under the direction of a Black Belt or may lead their
own less complex, high impact projects
Measure – Why Sampling
Sampling is the process of collecting only a portion of the data that is available or could be available and using the
data in the sample to draw conclusions (statistical inference) about the population. Generally its size larger the
sample, greater will be representation of the universe resulting the great reliability
Why Sample?
 It is often impractical or too costly to collect all the data.
 Sound conclusions can often be made from a relatively small amount of data.
Number of the sample is decided on the basis of below

factors
 Degree of Accuracy
 Availability of time
 Availability of money
 Size of Questionnaire
 Size of universe
 Number of resource available
Measure - Type of Sampling
Random Sampling: Each member /data of the population has an equal and known chance of been selected
Benefits of random sampling
 Unbiased
 Real representation of population
 Simple, &
 Economical
Systematic Sampling: Is often used of random sampling. Its also called an nth name selection technique. After
required sample has been calculated every nth record is selected from a list of population
Measure - Type of Sampling
Convenience Sampling: The sample is selected because they are convenient. Its less time consuming and cost
effective
Quota Sampling: The researchers first identifies the stratums and their proportions are they represented in the
population. Required sample are chosen from each stratum
Population vs Sample
Sample Population
Estimate
Statistics Parameters
 Population Is Every Possible Observation

 Samples Are Subsets Of Populations
 Data Is Obtained Using Samples Because We Seldom
Know The Entire Population
 Samples Approximate The Population
 Parameter: Summary Measure About Population
 Statistic: Summary Measure About Sample
Population vs Sample
90
80 300
70
Frequency
60
Frequency
50 200
40
30
20 100
10
0
65 75 85 95 105 0
Days 60 70 80 90 100 110 120
Days
Sample Statistics Population Parameters
A sample is a set of n observations actually A set of N observations from
obtained and a statistic is a numerical value which the sample is obtained (typically N
that describes the sample Is very large)
Measure - MSA
MSA (Measurement systems analysis)
We as a Six Sigma Professional believe that there is Error/ Defect in each peace of data
Our job is to figure out if the difference between actual and observed value matters
Are you skeptical? Consider continuous data where every value has an infinite number of decimals . . . If you chop
them off, the result is not totally accurate
For example:
 A file transfer took 14.157 . . . Seconds
 If you say, “It took 14 seconds,” you would be wrong in the purest sense
 You decide: Does the difference matter?
Measure - MSA
MSA (Measurement systems analysis)
MSA stands for Measurement systems analysis. Measurement is also called gage or equipment
Observed Value= True Value ± Measurement Error
Measurement Variation
Variation due Variation due

to Gage to Operator
Repeatability Reproducibility
Measure – Repeatability & Reproducibility
Repeatability
 Repeatability is done to check Equipment variation. Repeatability is amount of variation which is observed
when same item is measured again again by the same operator using the same equipment
 Memory jogger: Repeatability = same, same, same
 Also known as Within Appraiser variation or Equipment variation(EV)
Test Retest
 Repeatability is determined statistically via a method called Test Retest
Reproducibility
 Reproducibility is done to check Operator variation. Reproducibility is the amount of variation which is
observed when same item is measured by different operator using the same equipment
 Also known as Between Appraiser variation or Appraiser variation (AV)
Measure – Accuracy & Precision
Few other good to know Information
Accuracy: When data point are closer to mean but away from each other
Precision: When data point are closer to each other but away from mean
Equipment should both be Accurate and Precise
Precise But Not Accurate But Not Precise and

Accurate Not Precise Not Accurate
Measure – Accuracy & Precision
What is the difference between Accuracy and Precision?
Shift to
Target Shifting to Target &
Precise but not Accurate Reducing Variation
T
T Object
USL USL
of 6s is
USL USL
μ
Accurate but not Precise Shift to
μ
Target
T
USL USL Reducing
variation
Reducing
Variation
LSL- Lower Specification Limit USL- Upper Specification Limit T- Target

Measure – Attribute Agreement Analysis
Attribute Agreement Analysis is used to assess the agreement between the ratings made by appraisers and the
known standards
You can use Attribute Agreement Analysis to determine the accuracy of the assessments made by appraisers and
to identify which items have the highest misclassification rates
We use the following data to illustrate how calculations are performed
Transition Rohit - 1 Rahul - 1 Rohit - 2 Rahul - 2 Standard Results

1 TRUE TRUE TRUE TRUE TRUE Correct
4 TRUE FALSE FALSE FALSE FALSE Incorrect
8 FALSE FALSE FALSE FALSE FALSE Correct
12 TRUE TRUE FALSE TRUE TRUE Incorrect
17 FALSE TRUE FALSE TRUE FALSE Incorrect
We use the following data to illustrate how calculations are performed
Transaction Rohit - 1 Rahul - 1 Rohit - 2 Rahul - 2 Standard Results
4 TRUE FALSE FALSE FALSE FALSE Incorrect
8 FALSE FALSE FALSE FALSE FALSE Correct
12 TRUE TRUE FALSE TRUE TRUE Incorrect
17 FALSE TRUE FALSE TRUE FALSE Incorrect
Measure – MSA ( Minitab )
(Stat > Quality Tools > Attribute Agreement Analysis)
Attribute column: Choose to enter the column containing the responses
Samples: Enter the column containing the sample or part number
Appraisers: Enter the column containing the appraiser name or number
Number of trials: Type the number of trials
Known standard/attribute (optional): Enter a column containing the attribute or known standard for each sample.
The column can contain either numeric or text attributes, but the data type needs to match the response type
Acceptance Criteria
 Effectiveness: >90%
 Miss Rate: <5%
 False Alarm: <10%
Measure – MSA ( Variable )
Measurement
System Variation
Precision Accuracy
Resolution Bias
Repeatability Linearity
Reproducibility Stability
Analysis of
Gage Operator Part
Error
Bias: The difference between the average of measured value and true value is called Bias
Need to measure the same part number of times.Calculate average of these measurement
Bias: Average of these measurement – True Value

Calibration of the measurement system help us in reducing these Bias
Stability: Under the different environmental conditions, we should have and get the same results from the
measurement system
If there are errors in our measurement system, then we will be making decision on the basis of incorrect data
and our decisions will be in-correct
Linearity: In the entire range, are we have errors in a similar proposition. In many system , error tend to
increase with larger measurement
Least Count: Smallest Improvement or decrement that we can visualize on the scale on measurement system is
called as least count, its also called resolution
Its ability of measurement system to discriminate between measurement values
Sources of process Variation: Output of process when measured has 2 part of variation
1) Part to part variation ( True variation ): Variability in measurement across different parts
No 2 part same/ identical when manufactured by the same machine
2) Measurement system variation ( Variation due to gage or operator): All Variation associated with
measurement process. It include variation due to a) Repeatability and b) Reproducibility
Measure – MSA (Selection of Gage R & R study)
Selection of Gage R & R study:
• When each part is measured

Crossed multiple times by each operator.
Non destructive
• When each part is measured

only by 1 operator e.g. In
Nested destructive testing e.g. Car
accident test, medicine test
Methods of assessing repeatability and reproducibility:
XBarR Method : ANOVA Method:

Breakdown the overall variation Anova method is more accurate
into 3 categories than XBar Method
• Part to part • Part to part
• Repeatability • Repeatability
• Reproducibility • Operators
• Parts & operators
• Reproducibility
Steps Involved In Variable Study
1 Select minimum of 10 Parts
2 Select minimum of 2 Appraiser
3 Have each appraise measure each part 2 or 3 times
Measure - Rules
Rules of Gage R & R
 Number of Distinct categories should be equal to or more than 4
 Gage R& R as a percentage of contribution should be less than part to part variance
 Gage R & R as a percentage of tolerance

 Less than 10% is good
 Between 10% and 30%, accept with caution
 More than 30%, reject
Appraiser 1 2 3 4 5 6 7 8 9 10 Average
Rohit Trail 1 10.111 10.081 10.216 10.085 10.086 10.091 10.090 10.083 10.080 10.078
Trail 2 10.110 10.081 10.213 10.085 10.083 10.089 10.089 10.084 10.078 10.080
Trail 3 10.112 10.082 10.219 10.084 10.083 10.089 10.089 10.084 10.078 10.081
R
Xa=Average 10.111 10.081 10.216 10.085 10.084 10.090 10.089 10.084 10.079 10.080 10.100
Ra= Range 0.002 0.001 0.006 0.001 0.003 0.002 0.001 0.001 0.002 0.003 0.002
Ashok Trail 1 10.111 10.082 10.216 10.085 10.089 10.089 10.089 10.081 10.076 10.079
Trail 2 10.112 10.082 10.213 10.085 10.088 10.089 10.089 10.082 10.076 10.079
Trail 3 10.112 10.080 10.219 10.085 10.088 10.090 10.090 10.081 10.076 10.079
A
Xa=Average 10.112 10.081 10.216 10.085 10.088 10.089 10.089 10.081 10.076 10.079 10.100
Ra= Range 0.001 0.002 0.006 0.000 0.001 0.001 0.001 0.001 0.000 0.000 0.001
Priya Trail 1 10.111 10.082 10.216 10.084 10.084 10.090 10.090 10.083 10.079 10.080
Trail 2 10.110 10.082 10.213 10.084 10.085 10.088 10.088 10.082 10.079 10.080
Trail 3 10.112 10.084 10.219 10.085 10.083 10.089 10.089 10.082 10.079 10.079
P
Xa=Average 10.111 10.083 10.216 10.084 10.084 10.089 10.089 10.082 10.079 10.080 10.100
Ra= Range 0.002 0.002 0.006 0.001 0.002 0.002 0.002 0.001 0.000 0.001 0.002
PART Xp=Grand Average 10.111 10.082 10.216 10.085 10.085 10.089 10.089 10.082 10.078 10.079
Measure – MSA ( Calculations)
How is Process Capability determined?
Process Capability is the degree to which a system or service meets customer expectations
There are two ways of calculating Process Capability, depending on whether the data is discrete or continuous
Discrete data has isolated values, like number of employees, business unit codes (BUCs) and fields in a record
Continuous data in contrast can be measured to any degree of accuracy, like time or distance. The project
leader will pick a level of accuracy, such as 14.2 seconds rather than 14.20456 seconds, based on the projected
magnitude of the improvement.
In the case of currency, it is better to treat dollars like continuous data, even though a cent is a discrete number.
That is because analysis tools are richer for continuous data
Two Ways of Looking at Capability
Let us first consider discrete data
You count the defects, meaning the events or other outcomes that fail to meet customer specifications, and
compare that number to the total opportunities. An opportunity is anything that can meet or fail to meet
customer expectations
For example: If an End User Computing (EUC) service has 76 spare keyboards on hand, and an audit found 5
that are inoperative, then you have 5 defects out of 76 opportunities. That equates to 6.6% defects and 93.4%
good
The defect percentage is translated into a Z-score via a table, Excel or the MiniTab
Units and Opportunities
An example will clarify this:
What is the DPMO when there are 15 defects in 305 opportunities? Check the best answer
 500
 5,000
 50,000
 500,000
Measure - Sigma Level Calculation
Calculating Process Sigma Discrete Data Method
1. Number of Units processed N = __________

2. Number of Defect Opportunities Per Unit O = __________
3. Total number of Defects made D = __________
4. Solve for Defects Per Opportunity
= = __________
5. Convert DPO to DPMO
6. Use the following formula in MS Excel

to determine Sigma value Sigma(ST) = __________
Measure - Sigma Level Calculation
 We distinguish between short term and long term sigma. They are also called the reported and actual
sigma, respectively. Short term is also called the best you can be in a finite period under ideal
conditions
 All processes drift over time. There are variables (factors) that come into play in the long term that are
absent from a controlled experiment
 To accommodate the drift, it is common practice to add 1.5 to the long term Z-score when going to
short term, or when going from actual to reported sigma
Actual Reported
DPMO Long Term Short Term
6,210 2.500 4.000
Measure – Continuous Data
Driving in a Construction Area
Imagine you are driving on a highway that is undergoing construction. You have many vehicles available to you – is
the variability of your process
Monday
On this day you are driving a motorcycle. You are greeted by one narrow lane with modular concrete barriers on both
sides. Driving in the middle of your lane you have plenty of room on either side. You can even wander from side to
side and still have room without getting too close to the barriers
Tuesday
On Tuesday, you take your compact car. This time you do not have as much room between the barriers – only a
couple of feet on either side of the vehicle. This is not a problem, but you do have to be a bit more careful of going
into and beyond the barriers
Measure – Continuous Data
Wednesday
Now the fun begins. On Wednesday you hop into an 18-wheeler for the same trip. This time you have hardly any room
on either side of your vehicle. If you do not stay centered in your lane you run the risk of causing damage to you and
your vehicle. Would you try to go the speed limit through these barriers or would you slow down?
Thursday
Just when you are feeling better about getting through Wednesday’s drive, you are asked to drive the same 18-
wheeler, but this time you will be towing a manufactured home behind you! You are extremely nervous now – not only
do you have almost no room on either side of your vehicle but you also must tow something that takes up more room
than the entire driving lane. You are outside the lane (out of specification) before you start to drive
Friday
You take the day off to recover from all the stress of this week’s driving.
Specification Limits
For continuous data, in order to assess the process capability, you need limits defined by the user
The limits describe a range of acceptable values, bounded by upper and lower spec limits (USL and LSL). In
some situations, we have only a USL or we have only an LSL, meaning that all values in the opposite direction
are good outcomes
Examples of spec limits:
 If an on-line application fails, it must come back up within 15 minutes. 15 minutes is an Upper Spec
Limit (USL)
 To avoid overdrafts, bank accounts should not have less than $15,000. The amount is a Lower Spec
Limit (LSL)
 The amount of text on a PowerPoint slide should be between 50 and 150 words. There is a Lower Spec
Limit (LSL) of 50 and an Upper Spec Limit (USL) of 150
Process Capability
Capability of any process refers extent to which its able to meet customer specification
For example, a manufacturer of photocopiers requires that the width of a rubber roller must be between 32.523 cm
and 32.527 cm to avoid paper jams. Capability analysis reveals how well the manufacturing process meets these
specifications
The capability of a process should be constantly measured and analyzed. Capability analysis can help you answer
following questions:
 Is the process meeting customer specifications?
 How will the process perform in the future?
 Are improvements needed in the process?
There are various ways to measure capability of a process, most widely used use concept is Cp and Cpk.
Cp( Process Potential Index): Cp refers to inherent capability of a process by design. It further explain whether
normal variation of a process is within the specification limit or its exceeding specification limit.
Cp= ( USL - LSL) / 6 SD
Cpk ( Process Performance Index): Cpk refers to current performance level at which process is operating.
Process Capability
How to Calculate CP and CPk
CP= (USL- LSL) / 6 SD
CPu= ( USL- Mean) / 3 SD
CPl= ( Mean – LSL) / 3 SD
CPk= Min( Cpu, CPl)
Process Capability
Questions:-
 Please calculate Cpk when USL is 154 and LSL is 66 with mean at 85.8 and Std Dev 6
 1.1
 1.43
 0.99
 1.32
 Please calculate Cpk when USL is 157 and LSL is 96 with mean at 124.8 and SD 8
 1.56
 1.08
 1.44
 1.2
Analyze - Identification of X’s
Analyze phase starts with identification of Potential X’s and reaching to confirmed X’s which are causing problem
Identification of X’s
Data
Brainstorming
Stratification
Brainstorming:- Method of gathering lots of ideas within a small amount of time
Do’s and Don’t
 Select your Audience very carefully

 Never allow one to dominate the session
 Always encourage out of box ideas
 Give chance to everyone to speak
 Capture and note down every ideas
 No idea are criticized
Analyze – Methods of Brainstorming
Methods of doing Brainstorming
Free Wheel
 Spontaneous flow of ideas by all team members
Round Robin
 Team Members take turns suggesting ideas
Chit/Card Method
 Team Members write ideas on card with no discussion
Step Ladder
--------------------------------------------------------------------------------------------------------------------------------------
Brain writing
A team approach to generating many ideas in a short period of time, Similar to brainstorming except that it’s
more controlled. It generally leads to fewer but more developed ideas
Analyze – Fish Bone
Cause and Effect Diagram
Ishikawa Diagram / Fishbone / Cause and Effect Diagram is an analysis tool

that provides a systematic way of looking at effects and the cause that
contributes to those effects
It’s a pictorial representation of potential X’s. The design of the diagram looks
like a skeleton of a Fish, its often referred to as Fishbone Diagram
Potential X’s are categorized under 6 M
Manpower Machine Mother Nature
Measurement Method Material
Analyze - 6Ms
Man (Personnel): Any potential cause related to
people issues including differences in the way people Material (Inputs/Prior Outputs): Any potential
perform tasks cause related to variation in process inputs
– E.g. lack of training, lack of experience, – E.g. late delivery, different order types
high turnover
Measurement System: Any potential cause related
Method (Process): Any potential cause related to an to differences in how data are collected or measured
ineffective process, procedure, policy, or their – E.g. process/equipment used to measure
implementation performance is not accurate, repeatable, etc.
– E.g. lack of standardized work, lack of
empowerment, extra steps Mother Nature (Environment): Any potential cause
related to an uncontrollable external or
Machines (Equipment): Any potential cause related environmental condition
to the physical equipment, machines – E.g. major change in market, severe weather
E.g. lack of equipment capability, poor
office layout
Construction of a Cause & Effect Diagram
Step 1: Prepare a clear and understood Problem statement and place in the Box on the
right side of the cause & Effect Diagram
Why is
Underwriting
delayed?
Construction of a Cause & Effect Diagram
Step 2: Brainstorm the “Major” cause Categories and connect to the centerline
Machine Material Mother Nature
Why is
Underwriting
delayed?
Man Method Measurement
Control Impact Analysis
Impact
High Medium Low
Machine faulty Lack of knowledge
Control
In Control Over processing
Power failure Attrition is high
Out of Control Bad weather conditions
7 Tools of Quality
Kauro Ishikawa
In 1950 saw that majority of people were intimated by too many statistical tools
and identified simpler tools that served to solve most quality related issues
The term “7 tools of Quality” is named after the 7 tools of the famous warrior, Benkei. Benkei owned 7 weapons which
he used to win all his battles. Similarly you will be able to solve 95% of the problem using theses 7 tools of Quality –
Ishikawa
 Histogram
 Scatter Plot
 Pareto Analysis
 Cause and Effect Diagram / Fish Bone Diagram
 Flow Chart
 Check Sheet
 Control Charts
All of these are Directional Tools and not the Decision Making Tool
7 Tools of Quality
Scatter Plot or Scatter Diagram
It tells us about the relationship between two variable. It’s a very important tool which help us in estimating the
he direction of correlation between two variables
Interpretation of the scatter Diagram
 Perfect Positive correlation
 Perfect Negative correlation
 Absence of correlation
 Limited Degree of correlation
7 Tools of Quality
Look For Patterns
1 3 5
Strong Positive Correlation Strong Negative Correlation No Correlation
2 4 6
Positive Correlation Negative Correlation Other Pattern
7 Tools of Quality
Scatter Plot or Scatter Diagram
Temperature Sales of Jackets Scatterplot of Sales of Jackets vs Temperature
45 0
40 5 40
35 7
32 8 30
Sales of Jackets
25 11
20
20 17
15 22
10
10 30
8 34
0
5 42 0 10 20 30 40 50
Temperature
7 Tools of Quality
Flow Chart
Flow Charts are pictorial representations of a process.
By Breaking down the process in various steps, flow

chart can be useful in identifying where error are likely
to occur in the process
It also help us in analyzing the Non Value added step

which if removed will increase the efficiency of the
process
7 Tools of Quality
Pareto Analysis
Study of wealth distribution by Italian economist Vilfredo Pareto (1848 - 1923) in his
country.
Italy’s Wealth
Owned by 20% of the
population
80 % of wealth
20% of wealth
Owned by 80% of the population
7 Tools of Quality
Pareto Analysis
Pareto works on 80/20 principle. It states that if you can work and
correct top 20% of your problem then 80% of the process can be
improved
Pareto charts are extremely useful because it helps you to focus your
attention of the few important factors of the process instead of
focusing on all the factors at one time
7 Tools of Quality
Cascading Paretos
Frequency
Informat
Personal
Banking
Credit
Info
ion
Fix
Pareto A
Phone #
Address
Income
Marital
Status
Pareto B
Local #
Code
Area
Pareto C
7 Tools of Quality
Check Sheet
The check sheet is a form ( Document) used to collect data in real time at the
location where the data is generated. The check sheet is sometimes called a tally
sheet
What It is?
 It is a tool for manual data gathering
 Is used to collect data in real time at the source of data generation.
 Provides an easy, structured and
 standardized way of recording data.
 The data captured may be quantitative or qualitative.
 Usually involves making tally-marks / check- marks on a sheet to count the
number of times something happens as it happens.
7 Tools of Quality
Histogram
Histogram is a graphical representation of the data. Its easy to

understand and provide the easiest way to evaluate the
distribution of the data
It divides the data in different Bins ( Class Interval or Range).
Height of the bin shows the number of data point in that Group
Provide 2 valuable information
 Spread of the data
 Central behavior of the data
Analyze - Hypothesis
Hypothesis Testing
To draw a conclusion about population based on sample is called Higher Studies

Hypothesis, and to test certain assumption which we have made is
called Hypothesis Testing
Transport
Lack of Growth
Attrition Extended Shift
Salary
Supervisor
Personal Reason
Null & Alternate Word Salad
Status
Quo
“This might true, lets test it . If not, the
Assumed truth is something else”
Null
Assertion
Given Unknown
Alternate
“This is Accepted as TRUE”
Claim
Null & Alternate Meaning
Null Hypothesis :
 Ho: "Null" means nothing new or different; assumption or

status quo maintained
Null Hypothesis
Alternative Hypothesis:
 Ha : The "alternative" is simply the other option when the

null is rejected; nothing more. Alternate Hypothesis
Null and Alternate Properties
Ho Ha
Assumption, status quo, nothing new Rejection of an assumption
Assumed to be “ TRUE” ; a given Rejection of Assumption or the given
Null & Alternate Statement
 All statistical conclusions are made in reference to the null hypothesis
 As researchers we either reject the null hypothesis or fail to reject the null hypothesis; we do not
accept the null.
 This is due to the fact that the null hypothesis is assumed to be true from the start; rejecting or
failing to reject an assumption.
 If we reject the null hypothesis, then we conclude the data supports the alternative hypothesis.
 However if we fail to reject the null hypothesis, it does not mean we have proven the null
hypothesis is “true”
 Why? Because remember from the outset we ASSUMED it was true
 Failure to reject the null does not equate to "proof about its truth
P - Value
P value
 P Value is referred to as value of significance. P-value is the decision criteria
 It’s the Probability value which varies from 0 to 1 , a commonly used value is 0.05
 A sample P- value ( typically < 0.05 ) indicates strong evidence against the null
hypothesis, so we reject the null hypothesis
 When P is low Null will Go, When P is high Null will Fly
The Fire Alarm Hypothesis
 Let's say you are going down the hallway at work or school,
doing your own thing; everything is normal. Suddenly you
encounter a sudden smell of smoke.
 You know that may mean a serious fire is taking place. Or it

could be nothing serious; maybe someone burned popcorn in
the microwave.
 What do you do next?
Let's take a look at what might happen
 If you think the smoky smell is nothing serious, you may

decide your assumption that everything is normal is correct
and you will not pull the fire alarm
 If you think the smoky smell is due to a serious fire, you may
reject your assumption that everything is normal and you will
pull the fire alarm
Now let's take a look at what may go wrong

TYPE 1 ERROR
1. You smell smoke
Rejection of the assumption ( null
2. You think, This is not normal (reject the assumption that hypothesis ) when it should not have been
everything is OK) Reject your null hypothesis rejected
3. Therefore you pull the fire alarm Incorrectly rejecting the null hypothesis
4. The building is evacuated and the fire department arrives to In this case a “ false alarm”
investigate
5. After the investigation it is determined there is no fire. You

“falsely” pulled the fire alarm
6. When you rejected your assumption that everything was OK,

when it really was OK you committed Type I Error. A "false
alarm”
Now let's take a look at what else may go wrong

TYPE 2 ERROR
1. You smell smoke
Failure to reject the assumption ( null
2. You think, "It is probably some one burned their lunch in hypothesis ), when it should have been
the microwave. No big deal.” rejected
3. Therefore you do not reject assumption (null hypothesis) Incorrectly not rejecting the null
that everything is OK. You uphold the null hypothesis
4. But there is indeed a fire, no one injured, but the building

burns to the ground
5. When you failed to reject your assumption that everything

was OK, when it really was NOT OK, you committed Type II
error
Ho= smoke is annoying but not serious; everything is OK as usual; no fire
Ha = smoke evidence of a serious fire; everything NOT OK as usual; fire
Actual Condition
No Serious Fire Serious Fire
Do not reject Ho
Correct Conclusion Type II Error
( No Series Fire )
Conclusion Reject Ho
Type I Error Correct Conclusion
( Series Fire )
*In general, the real-world consequences of a Type ll

Error are much greater. In this case, a Type II error may
mean loss of property or even lives.
Innocent & Guilty
Salary Impact Salary Impact ( Type II Error ( Beta

While it does not) Error)
Type 1 Error ( Alpha Salary does not Salary does not
Error) Impact ( While it Impact
does)
*In general, the real-world consequences of a Type ll Error are much greater.
In this case, a Type II error may mean loss of property or even lives.
Analyze – Type of Test
Correlation
In 1896, Karl Pearson developed the method of coefficient of correlation
 Correlation is the measure of amount of linear relationship between two variables
 Is represented by the correlation coefficient, which is a pure number ranging between -1

and +1;
 -1 means totally negative correlation and +1 means totally positive correlation
 Positive CORRELATION
Negative CORRELATION 
-1 -0.8 -0.5 0 +0.5 +0.8 +1
Strong moderate weak weak moderate Strong
Correlation
Type of Correlation
On the basis of direction and ratio of change between relevant variables and number of series etc
Correlation can be of 3 type:
1) Positive & Negative Correlation
Positive Correlation:
 If the values of the 2 deviates in the same direction i.e. an increase in the value of one variable results in a
corresponding increase in the value of other or decrease in the value of one variable results in the decrease of other
variable
Negative Correlation:
 When 2 variable deviates in the opposite direction, its called negative correlation.
E.g. Decrease in the demand on increase in price
Correlation
2) Linear and Curvi-Linear Correlation
Linear Correlation:
 If the ratio of change between 2 variables is constant its known as linear correlation
e.g. 10% increase in the price each time, demand decreases by 5 %
Curvi- Linear Correlation:

 If the ratio of change between 2 variables is not constant. Its called curvi-linear correlation
e.g. If with 10% increase in price , demand decreases ranging from 5% to 20%, its will be curvi linear
correlation
3) Simple & Multiple Correlation
Simple Correlation:
 The correlation between 2 variable is know as simple correlation
Multiple Correlation:
 When 2 or more variables are studied it is a problem of multiple correlation
Methods of determining Correlation
Degree of Correlation
Intensity or degree of relationship between 2 variable is assessed by the quantitative value of coefficient of correlation
2 Methods of determining correlation
1) Graphical Methods
 Scatter diagram
2) Mathematical Method
 Karl Pearson’s coefficient of correlation
 Spearman’s Rank coefficient of correlation
Methods of determining Correlation
Karl Pearson’s coefficient of correlation
This method of was propounded by famous statistician Karl Pearson. This method explains both the degree and
direction of correlation
Coefficient of correlation is denoted by r and is calculated on the basis of mean and SD
Regression
Correlation provides information regarding degree and direction of relationship between 2 related series
If value of one series is given and value of other services is to be predicted, technique of Regression Analysis is helpful
Benefits of Regression Analysis
 Estimation of value
 Degree & Direction of correlation
Type of Regression
 Simple Regression: Regression is based only on 2 variables
 Multiple Regression: More than 2 variables are studied at a time
 Linear Regression: Regression line is in the form of straight line. Value of dependent variable changes at a
constant rate for a unit change in the value of independent variable
 Curvi-linear Regression: If the regression line is not a straight line but a smooth curve
What is Statistics
Statistics
The branch of mathematics that transforms data into
useful information for decision makers
Descriptive Statistics Inferential Statistics
Collecting, summarizing, Drawing conclusions and/or making

and describing data decisions concerning a population
based only on sample data
Point Estimates & Confidence Interval Estimates
An Important objective of sampling theory is to obtain maximum realistic information in respect of population
characteristic on the basis of minimum time and expenditure by using the technique of sampling analysis
These estimates is of 2 type:
Point Estimate: The estimate of a population parameter expressed by a single number is called point estimate
Example:
 Time taken by the driver to deliver the order at the customer. One might say it take 15 min to deliver the
order
 Questions : Does it exactly take 15 Min or it varies
Gumball Guessing Game
The object of the game is for you to guess how many gumballs are in the jar
 If you guess within 5 ( ± 5 ) . You will get the gum plus 2 rewards
 If you guess within 15 ( ± 15 ) . You will get the gum plus 1 reward
 If you guess within 30 ( ± 30 ) . You will only get the gums
But before hand, you have to decide which guess to make. How confident are you ?
Interval Estimate: An interval estimate is a statement of 2 values between which the parameter is expected to exist.
Suppose if it estimated on the basis of statistic that average height of student in a college is 160 ( ± 4 ) i.e. from 156
to 164 cms, it would be an interval estimate
A confidence interval provides additional information about variability
Lower Confidence Upper Confidence

Limit Point Estimate Limit
Width of
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publisher. For any information,
Type of Probability Distribution
Type of Probability Distribution
Discrete Distribution Continues Distribution
Binominal Distribution Normal Distribution
Poisson Distribution Student t-Distribution
Rectangular Distribution Chi-square Distribution
Multinomial Distribution F-Distribution

Negative Binominal
Distribution
Geometric Distribution
Hypergeometric Distribution
Normality Concept
In probability theory, the normal (or Gaussian) distribution is a very commonly occurring continuous probability
distribution—a function that tells the probability that an observation in some context will fall between any two real
number. A probability distribution where the most frequently occurring value is in the middle and other
probabilities tail off symmetrically in both directions
This concept is very usual in forecasting. Tells us whether the process is under the influence of common or special
causes – a normally distributed data set is said to be under the influence of common causes
3 Properties or characteristics of Normal Curve:- Empirical Laws
 Tail does not touch X axis  68% of the data will fall under (- 1SD ,+1 SD)
 Both side symmetrical  95% of the data will fall under (- 2SD ,+2 SD)
 Mean, Median and Mode are equal  99.74 % of the data will fall under (- 3SD ,+3 SD)
Normality Concept
The formula for the normal probability density function is :
2
1  (Xμ) 
1   
2  
f(X)  e
2π
Where e = the mathematical constant approximated by 2.71828
π = the mathematical constant approximated by 3.14159
μ = the population mean
σ = the population standard deviation
X = any value of the continuous variable
Normality Test
Stat > Basic Statistics > Normality Test
Ho = Data is Normal
Ha = Data not Normal
•Data points fall on a straight line is an indication of
Minitab Output
normal distribution.
• Draw conclusion based on the p-value.
•If p-value < .05, Reject Ho.
• Advantage of this function over the summary charts in

Display Descriptive Statistics is the visualization of the
data
P-value is >0.05
No statistical evidence for non-
normal data. Can not reject Ho
Skewness
 Skewness speaks of the amount and direction of skew that is the deviation of data from horizontal
symmetry. Skewness has no units, it is a pure number
 Interpretation of coefficient of skewness is given below
highly moderately approx. approx. moderately highly

skewed skewed symmetric symmetric skewed skewed
-1 -0.5 0 +0.5 +1
Coefficient of Skewness
Skewness
Mean Mode
Frequency
Frequency
Frequency
Median Mode
Mode
Median Median
Mean
Mean
x x x
Normal distribution Negative or Left skewed Positive or Right
distribution skewed distribution
Kurtosis
 Kurtosis tells us how tall and sharp the central peak is, relative to a standard normal distribution
curve.
 It can be easily calculated using KURT() function in MS excel
Kurtosis is typically measured with respect to

the normal distribution. A distribution that is
peaked in the same way as any normal
distribution, not just the standard normal Leptokurtic (thin)
distribution, is said to be mesokurtic. Positive
Kurtosis > 3
Platykurtic distributions have peak lower than

mesokurtic distribution. Mesokurtic
• These are characterized by a certain flatness Normal distribution
to the peak, and have slender tails.
Platykurtic
(flat)
A leptokurtic distribution has kurtosis greater Negative
Kurtosis < 3
than a mesokurtic distribution.
• These have peaks that are thin and tall.
• The tails, to both the right and the left, are
thick and heavy.
1 – Sample T Test
Null & Alternate

1. Compare
Ho=> Mean
When to use
mean of
1. When you equals to
Example
mileage of a
want to standard batch of Maruti
compare mean
Dzire to a
of a sample to a
Ha = Mean is standard of 21
known
not equal to Km/ Litre as
standard
standard advertised by
Maruti
2 – Sample t-Test
Null & Alternate

Ho=>
Mean of sample
When to use
1= Mean of 1. Compare
Example
1. When you
sample 2 mean of
want to
mileage of a 2
compare mean
batchs of
of 2 sample Ha = Maruti Dzire to
with each other
Mean of sample each other
1 = Mean of
sample 2
1 Way Anova Test
Null & Alternate

Ho=> Mean of
When to use
1. When you all the sample
Example
are equal 1. Compare
intend to
mean of
compare mean
mileage of more
of greater than Ha = Mean of than 2 batches
2 samples with atleast 1 of Maruti Dzire
each other sample is
different
1 – Sample Sign-Test
Null & Alternate

1. Compare
Ho=> Median
When to use
1. When you Median of

equals to
Example
want to mileage of a
compare standard batch of Maruti
median of a Dzire to a
sample to a Ha = Median is standard of 21
known not equal to Km/ Litre as
standard standard advertised by
Maruti
Mann Whitney - Test
Null & Alternate

Ho=>
When to use
Median of sample
1. When you 1. Compare
Example
1= Median of
want to sample 2 Median of
compare mileage of a 2
Median of 2 batchs of
sample with Ha = Maruti Dzire to
each other Median of sample each other
1 = Median of
sample 2
Moods Median Test
Null & Alternate

Ho=> Median of
When to use
1. When you all the sample
Example
intend to are equal 1. Compare
compare Median of
Median of mileage of more
greater than 2 Ha = Median of than 2 batches
samples with atleast 1 of Maruti Dzire
each other sample is
different
Test Comparison
Parametric Test Non Parametric Test

Mean Based Test Median Based Test
1 Sample T Test 1 Sample Sign Test

2 Sample T Test Mann Whitney Test
1 Way Anova Test Moods Median Test
Test for Variance
Null & Alternate

Ho=> Variance
When to use
of samples are
Example
1. Compare 1. Compare
variance of 2 or equal variance of 2
more than 2 ( or more than
samples t each Ha = Variance 2 ) batches of
other of samples are Maruti Dzire
not equal
If data is Normal :
If 2 Samples are compared check for F test. If more than 2, check for Bartlett
If data is Not Normal:

For 2 or more than 2 samples check result from Levene Test
Chi-Square Test
Chi-Square test is one of the extremely useful test in statistical studies
Test was first used by Karl Person in year 1900 and widely used Non Parametric Test
Chi-square test is a measurement which tells about the magnitude of the difference between observed
value and expected frequencies. Further explains that whether the difference is significant or due to
sample fluctuation only
Improve
Once the confirmed X’s are know after conducting the Hypothesis testing in Analysis phase, we move to Improve
phase where we try to find out the best possible solution for the problem or the factors which is affecting the
process
Activities in Improve Phase
 Identify Solution
 Test Solution
 Refine Solution
 Pilot Solution
 Full Scale Implementation
Major tools which are used in Improve phase
1. FMEA ( Failure Mode Effect Analysis)

2. Gantt Chart
3. DOE ( Design of Experiment)
4. CBA ( Cost Benefit Analysis)
Improve - FMEA
Failure Mode Effect Analysis ( FMEA)
Failure mode and effect analysis is one of the most widely used risk management tool within and outside a six sigma
project
As the name suggest it is used to identify the failure mode of process steps and their effects on the process.
Subsequently decides the risk treatment plan on the basis of analysis done
FMEA helps us to identity the possible issues which might occur in the future, try and prepare possible solution to
avoid errors
Identified risk needs to be quantified using Severity, Occurrence and Detection on a scale 1 to 10
RPN – Risk Priority Number is calculated for each risk. RPN is derived by multiplying S,O,& D
Finally risk treatment plan is prepared and the ownership of implementing each solution is given to respective
individuals
Improve – Type of Risk
Risk
As a part of Risk management strategy, following option can be chosen to handle the risk
 Accept the Risk
 Transfer the Risk
 Reduce the Risk
 Avoid the Risk
 Postpone the Risk
Improve - FMEA
FMEA Template
Actionable Failure Mode Effect on EDR Severity Occurance Detection RPN RMS RTP Responsibility Timelines
Gantt Chart Tool
 Bar chart illustrating project schedule
 Shows finish and start date
 Includes the elements and sub-elements of a project or Work Breakdown Structure (WBS)
 Could also illustrate dependency between tasks, milestones, among other elements
 It represents a key project management tool as it helps with managing the WBS and to assess progress of the
project compared to baseline
Gantt Chart Tool
Activities/ Tasks Duration Predecessor Project Timeline

s
Bar chart
(from start to finish per activity/
task)
Dependency
WBS Milestone
Improve - Cost Benefit Analysis
Cost Of
Implementation
Benefits
Benefits Cost Of Implementation

 Quality improvements  Equipment and materials
 Cost reductions  Training
 Documentable cost  Improvement team labor
avoidance  Travel and living expenses
 Revenue generation
Control
Control phase is last phase in DMAIC cycle of Six Sigma
Control phase in more about sustaining the improvement which has been done
 Sustain improvement once the new solution is implemented – “Hold the gains”
 Proactively monitor the process on a ongoing basis
 Transition from Project to Process
Control Charts
 Control charts was developed by Dr. Walter Andrew Shewhart in year 1920
 Control chart include statistically generated upper and lower control limit
 Forming the Upper control limit (UCL) and the Lower control limit (LCL):
UCL = Process Mean + 3 Standard Deviations
LCL = Process Mean – 3 Standard Deviations
UCL
+3σ
Process Average
-3σ
LCL
time
Control Charts
The fundamental relationships in
developing control charts are as follows:
 The center (or central) line is the mean of the process. Theoretical Normal Curve Actual Process Curve
 The upper control limit (UCL) is the mean plus 3 times

standard deviations. UCL
+3σ
No. of Standard Deviations from the Mean

 The lower control limit (LCL) is the mean minus 3 times
standard deviations. +2σ
 So, the limits are: Μean ±3σ +1σ
 The reason for using 3 standard deviations is based on the

Mean
assumption that the process output follows a “Normal
distribution” - 1σ
 If the process is in control, there is a very small probability of - 2σ

an observation falling outside of the control limits. This
probability increases as the process deviates from the in - - 3σ
Control State. LCL
Control Charts - Identify variation
 Chance causes - “common cause” : Inherent to the process or random and not controllable if only
common cause present, the process is considered stable or “In control”
 Assignable causes - “special cause” : Variation due to outside influences if present, the process is “out of
control”
 Separate common and special causes of variation. As long as data stays within the control limit and does
not exhibit any sort of special cause variation it is said to in in control
Control Charts are used to check for process control
In Control Process : A process is said to be in control when the

control chart does not indicate any out-of-control condition
 Contains only common causes of variation
 If the common causes of variation is small, then control
chart can be used to monitor the process
 If the common causes of variation is too large, you need to
alter the process
If the process is found to be out of control, steps should be taken

to find and eliminate the special causes of variation
Control Charts - Interpretation and Analysis
Data points
Non Random Variation range (NRV)
UCL (µ + 3σ)
Zone A
Observation Value 
µ + 2σ
Zone B
µ + 1σ
Zone C
Center Line (µ)
Zone C
µ - 1σ
Zone B µ - 2σ
Zone A
LCL (µ - 3σ)
Non Random Variation range (NRV)
0 5 10 15 20
Control Charts
Control chart depend on the type of
data on which we are working i.e Control
Continuous data or discrete data Charts
Variable Attribute /
Discrete
Data Data
Subgroup Subgroup Subgroup

Defective Defect
Size 1 Size 2-5 Size 5-9
X Bar R X Bar S Non Non

IMR Chart Constant Constant
Chart Chart Constant Constant
NP P C U
Control - Attribute Control Chart
np Chart:
 Recall that the np chart is used when the sample size is constant
 We use this chart to plot number of defective
Date Sample Size Number of Defective

28-Sep-19 1000 9
29-Sep-19 1000 12
30-Sep-19 1000 13
1-Oct-19 1000 12
2-Oct-19 1000 11
3-Oct-19 1000 9
4-Oct-19 1000 7
5-Oct-19 1000 0
6-Oct-19 1000 12
7-Oct-19 1000 8
8-Oct-19 1000 9
9-Oct-19 1000 7
10-Oct-19 1000 11
P Chart:
 Recall that the p chart is used when the sample size varies
 We use this chart to plot the proportion or percentage of defective. Note: The control limit on the chart appear
ragged because they reflect each subgroup individuals sample size
Number of
Date Sample Size
Defective
28-Sep-19 115 12
29-Sep-19 125 14
30-Sep-19 111 18
1-Oct-19 133 13
2-Oct-19 120 17
3-Oct-19 118 15
4-Oct-19 137 15
5-Oct-19 108 16
6-Oct-19 110 11
7-Oct-19 124 14
8-Oct-19 128 13
9-Oct-19 144 14
10-Oct-19 141 17
C Chart:
 Recall that the c chart is used when the sample size is constant
 We use this chart to plot number of defects
Date Sample Size Number of Defects
28-Sep-19 150 19
29-Sep-19 150 12
30-Sep-19 150 13
1-Oct-19 150 12
2-Oct-19 150 18
3-Oct-19 150 19
4-Oct-19 150 17
5-Oct-19 150 20
6-Oct-19 150 22
7-Oct-19 150 18
8-Oct-19 150 19
9-Oct-19 150 17
10-Oct-19 150 11
U Chart:
 Recall that the u chart is used when the sample size is varies
 We use this chart to plot number of defects per unit. Note: The control limit on the chart appear ragged because
they reflect each subgroup individuals sample size
Date Sample Size Number of Defects
28-Sep-19 125 4
29-Sep-19 111 8
30-Sep-19 133 3
1-Oct-19 120 7
2-Oct-19 118 5
3-Oct-19 137 5
4-Oct-19 108 6
5-Oct-19 110 10
6-Oct-19 124 4
7-Oct-19 128 3
8-Oct-19 144 4
9-Oct-19 138 7
10-Oct-19 150 11
Control - Interpreting Control Charts
Rules for Detecting Lack of Statistical Control
1. One point falls outside of the ±3 Sigma control limits
3 UCL
2
1
-1
-2
-3 LCL
2. Seven successive points on the same side of the centerline.
3 UCL
2
1
-1
-2
-3 LCL
3. Seven successive points that increase or decrease
3 UCL
2
1
-1
-2
-3 LCL
4. Two out of three successive points are both on the same side of the centerline and outside the 2 Sigma
zone
3 UCL
2
1
-1
-2
-3 LCL
5. Four out of five successive points are both on the same side of the centerline and outside the 1 Sigma
zone
3 UCL
2
1
-1
-2
-3 LCL
6.Other non-random patterns such as trends, cycles, or an unusual spread of points are within the control
limits
3 UCL
2
1
-1
-2
-3 LCL
Lean - Concepts
Muda, Muri ,Mura
 The goal of lean methodologies is the elimination of waste
 Muda, Muri and Mura are Japanese terms
English Translation
Muda: Waste
Muri : Overburden
Mura: Unevenness
Lean Sigma - TIMWOODS
Its about reduction of waste
Skills: Professional staff working Transport: Data and

on administrative duties, micro- information having to move from
managing one location to another
Defects: Anything requiring Inventory: Work pending/in

correction or rework, missing S T progress
deadlines, data integrity issues
D I
Over Processing: Providing O M

more detail in a report than is W Motion: Walking to pick up
O printing, moving between
needed. Too many checks,
controls, authorizations multiple online screens,
spreadsheets
Over Production: Inviting more

people to a meeting than is Waiting: Waiting for
necessary. Cc’ing too people on data/information, waiting for
an email authorization or approval
8 Type of Waste ( DOWNTIME )
Defective Products: Items that fail to meet customer specifications are pure waste, e.g., returns, rework,
scrap, and warranty costs
Overproduction: Producing more than demanded or before it is needed, e.g., stored materials or inventories
Waiting: Long changeover times, slow processing times, and materials handling tasks limit opportunities to make
on-time deliveries
Non-Utilization of Human Potential: Professional staff working on administrative duties, micro-managing
Transportation: Material movements, by definition, add no value to products, as they do not affect form, fit or
function
Inventory or Work-in-Process (WIP): Material between operations due to large lot sizes or long process cycle times
Motion: Unnecessary movements and Effort of workers
Extra Processing: Unnecessary or inefficient process steps simply add cost and time.
The Waste of Transportation
The Key Issue with this type of waste is that Transportation adds cost and time to processes
Questions that should be asked:
 How does our current arrangement create

excessive transportation? What is the solution?
 How much excessive transportation of material
is required because of overproduction?
The Waste of Inventory
The key issue is when manufacturing lead times are larger than market demand lead times, stock must be
produced in advance of orders which sets the stage for excess and obsolete inventory
 Why do inventory accumulate in the process? Do we have a

bottleneck? Is it a first in first out process?
 Because of long lead times, how much product is produced but
never consumed by the primary customer?
 How do our internal business practices contribute?
The Waste of Over Processing
The Key Issue In This Type Of Waste Is The Application Of Value
Is The Process Adding Value In The Eyes Of The Customer?
 Is the Customer willing to pay for this step?

 Why should a particular processing method be used?
 Has technology changed? Would the change help the
process and eliminate waste?
 Is the process step compensating for other defective
processes?
The Waste of Over Production
The key issue in this type of waste is the fact that excess inventory between processes or large lot sizes
usually develop because of operating inefficiency, which tends to hide the real problems. Inventory can be
viewed as stored capacity or idle money.

1. Do I have a problem with set-up and change over?
2. Is equipment layout an issue?
3. Is production leveling possible?
4. Do large lot sizes contribute to the problem?
5. Does my planning process contribute to the problem
The Waste of Defects
The Key issue in this type of waste is understanding and controlling the variation to prevent defects from occurring
1. What are the sources of variation that are causing defects?

2. How can we control these sources of variation?
3. What effects do the defects have on our ability to flow product?
4. Do defects induce other wastes into our system?
The Waste of Over Waiting
• The Key Issue Is The Inappropriate Use Of Time While Waiting For The Completion Of An Operation
• The Lack Of Balance And Synchronization Causes Idle Time For The Product, Equipment, And/Or Labor
 Do some of our operators seem busier than others? Why?

 Do we understand the work content of our processes so that the work can be
distributed evenly amongst the headcount necessary to meet the demand?
 Do we have product that has a lot of idle time? Is it a balance,
synchronization, or set-up issue?
The Waste of Over Motion
The Key Issue With This Type Of Waste Is The Lack Of Standard Work And Poorly Designed Lines.
It Is Imperative When Correcting This Type Of Waste To Fix The Processing Problems First, Or The
Solution May Create Waste.
AREA NAME: BEFORE - Carrier Assembly - Ball Bearings PREPARED BY:
SUPERVISOR: DATE:
NOTE: Depict rough scale of equipment layout; and, draw a point to point diagram of the complete product flow
40
35
OVEN
33
31
B en ch
T oo l
21 26 24
23 B ox 22 8
T rash
P ress 19 14 2 4 9 6 10
39 3018
13 12 16 20 34 38
44
42 32
28 P art 1 5
V ice 41
B ox 1 7
36
43
29 25 3 1 5 7
37 27
11
P arts R ack
 Employees look busy but are they adding value?

 How do we allow employees to stay focused on adding value
continuously without interruptions
 Does the employee have all the necessary items at point of use?
5 Principals of Lean Six Sigma
Map all of the steps…value added &

Define value from the customers 2 non-value added…that bring a product
perspective and express value in terms of Map the of service to the customer
a specific product 1 Value Stream
Specify Value
Lean Thinking
The continuous movement of products,
The complete elimination of waste so 3 services and information from end to end
all activities create value for the Establish
5 through the process
customer by continuous improvement. Work to Flow
Use all principles again, and again. Perfection
4
Implement
Pull
Nothing is done by the upstream

process until the downstream
customer signals the need
Lean Thinking Principles guide you through lean implementation

Principals - 1. Specify Value
KEY DEFINTIONS
 Value Added
 Any activity that increases the market form or function of the production or service ( These are things the
customer is willing to pay for )
 Non-Value Added
 Any activity that does not add market form or function or is not necessary ( These activities should be
eliminated, simplified, reduced or integrated )
 Non-Value Added but required [ Enabling ]

 Any activity that does not add market form or function but is required ( Regulatory compliance, cost
accounting, Etc.)
Principals – 2. Value Stream
 A value stream is the flow of all of the activity, value added and otherwise, needed to fulfill a request
 Value stream maps are drawings that makes the flow of material and information visible
 Value stream mapping (vsm) is the name used to describe the activity of creating these drawings
 Current state maps describe the process as it is today
 Future state maps describe the ideal state based on applying smart manufacturing principles
 It maps both information flow and material flow
Principals – 3. Flow
 Traditional plant and equipment layouts attempt to maximize machine utilization by placing like
machines, and people with specialized skills, into process defined departments
 Lean plant and equipment layouts seek to optimize total system productivity by arranging machines
to support continuous product flow
TRADITIONAL FACTORY OUTLET
CONTINUOUS FACTORY OUTLET
Principals – 4. Pull
 Pull scheduling is a replenishment process that schedules internal production and outside suppliers
to produce and deliver only the product that has actually been purchased by the customer
 Contrasted with push scheduling based on a forecast of customer orders
Principals – 5. Perfection
 Even though perfection is stated as the final level of lean six sigma, it also forms the base of our
improvement cycle
 Key elements of perfection are:

 Process Standardization
 Process Stability
 Process Capability
 A just in time production is feasible only when the above elements are adequately addressed
Principals – 5. Perfection - Process Standardization
 Standardization is the first step in an improvement journey
 If there are multiple ways of doing an activity, a lot of ground fruits can be gained simply by
standardization
 A lot of wastes (e.g. Motion, rework, waiting etc.) Can be minimized early by standardizing the process
 Standardization tools include:
 Process flow diagram, process map, value stream map
 Standard work sheets, work instructions
 Control plans, bpms, standard formats
 5s (especially 1s and 2s)
Principals – 5. Perfection - Process stability
 Variability is one of the causes of inventory
 Process variation goes out of control due to presence of special causes of variations. A process needs to
be stabilized before improving its capability
 Tools used for stabilizing the operations include

 Control charts
 Brainstorming, fishbone, why-why, graphs and charts
 Note: one of the ways of achieving stability in an output is to standardize and control the
relevant input factors
Xbar-R Chart of Length

602
U C L=601.722
601
Sample Mean
_
_
600 X= 600.072
599
LC L= 598.422
598 1
1 3 5 7 9 11 13 15 17 19
Sa mple
6.0 U C L=6.048
4.5
Sample Range
_
3.0 R= 2.860
1.5
0.0 LC L= 0
1 3 5 7 9 11 13 15 17 19
Sa mple
Principals – 5. Perfection – Process Capability
 The ability of a process to consistently meet customer requirements is called process capability
 Processes low on capability generate high waste of defects and consequently other wastes like
transportation, process waste, waiting etc.
 Tools used for measuring and improving process capability include

 Cp-cpk analysis
 Note: capability of a process is meaningless if the process is not stable
Lean - 5 Whys
How to Complete 5 whys
 Write down the specific problem. It helps a team focus on the same problem
 Ask why the problem happens and write the answer down below the problem
 If the answer you just provided doesn’t identify the root cause of the problem, ask why again and write that
answer down
 Loop back to step 3 until the problem root cause is identified
Lean - 5 Whys
In the 1960’s, Washington DC officials in charge of the Jefferson Memorial feared Jefferson’s statue
would be damaged by constantly washing off bird droppings. Their plan was to encase the statue in
a thick layer of plastic costing $300,00 for the encasement and $200/year to maintain. An auditor
asked why? Because the constant cleaning
Why encase the
of the statue will quickly
statue in plastic?
deteriorate it
Why does it need
Because the birds in here leave
to be cleaned so
droppings on it
often?
Why are there Because they are attracted to
so many birds? all the spiders in here
Because the spiders are after
Why are there so
the flies that come in at night
many spiders?
from the basin
Because the flies are attracted
Why are there so
to the lights that light the
many flies?
memorial at night
The auditor bought a $2 device to delay the lights until 30

minutes after dark. The flies were attracted to other light
sources so the spiders and birds left and it was no longer
necessary to encase the statue.
Poka –Yoke
What is Poka-Yoke?
 Poka-Yoke is a methodology created in Japan which means “Mistake Proofing
 The essential idea of Poka-Yoke is to design process in such a way that mistakes are impossible to
make or at least are easily detected and corrected
3 Rules of Poka-Yoke
An error proofing ( Poka Yoke) system should take into

consideration
Don’t generate
Three simple rules :
a defect
Don’t accept a defect Don’t pass on a defect
Your supplier You Your supplier
Ideally design the product so that it won’t be assembled incorrectly!!

Lean - 5S
5 S is a process to create workplace organization and
standardization. Monitoring and measurement tools are
used to ensure that the workplace contains only what is
needed, when it is needed and where it is needed.
5 S is a process to achieve and sustain a clear, clean, safe

and organized workplace
Lean - 5S
SET – is an ACTION to put every SHINE – is an ACTION to clean your
necessary item in good order. workplace thoroughly.
• Filing and records management. • Employees’ decorum.
• Maximize utilization of 3 layered • Common areas: aisle, meeting
personal drawer and departmental filing rooms and pantry area per floor 
cabinets. garbage segregation and Clean as
• Workstation’s nametag, shared supplies You Go (CLAYGO).
& cabinet labeling.
• Establish retention period for
documents, files and others.
• Electronic filing STANDARDIZE – is a
CONDITION where high
standards of good housekeeping
SORT – is an ACTION to is maintained so that there is no
identify and eliminate all dust anywhere.
unnecessary items from your • Audit and scorecard publishing.
workplace. • Monitoring and closure of audit
• Weekly sorting exercises findings.
• Define clear cut definition • 1 project/initiative per quarter
of NECESSARY vs per department.
UNECESSARY
SUSTAIN – is a CONDITION where all members
practice the above 4S’s spontaneously and
willingly as a way of life, a CULTURE.
• Rewards and recognition system.
• Scorecard presentation to PLT (Quarterly)
Lean - 5S
Before
After
Lean - 5S
Resistance to 5 S
 I’m not a cleaner !
 We already tried something like this
 I know my way around this mess
 5 S is for a factory
 It’ll just get dirty again
 Let us do it the way we’re used to
Gemba
What is Gemba?
 Gemba is a Japanese word. Gemba means “The Real Place”. It means the actual place where problem was
found or an Incident has happened
 As per Gemba theory, we must have to go at the Gemba for investigation of any problem or incident
 So problem solver’s or cross function teams presence is necessary at Gemba
 The actual place may be referred: In manufacturing, it is a shop floor or it can be a construction site, assembly
line, any lab , office , etc.
Go & see the process as it

happens!
Take the team along. Walk
the process to understand
actual vs. the written
procedure
What should be Captured:
• Normal Conditions ( Interview, Reports)
• Abnormal Conditions (Listing , Photographs)
• Collection of defects parts / items
• Time lines and People details etc.
DOE
( Design of Experiment)
Design of Experiment
If this your first exposure to DOE, here are some tips:
DOE is a big subject. We are covering a small portion of it
If you decide to try DOE, consult with someone who has done it before.
Don’t try it alone the first time
Objective of Experimentation
The following are some of the objectives of experimentation in an industry :
 Improving efficiency or yield
 Finding optimum process settings
 Locating sources of variability
 Designing new processes and products
Design of Experiments is a systematic method to determine the relationship between factors affecting a
process and the output of the that process
We all know that a process is set of activities that require certain input and that produce certain output
Design of Experiments is a systematic method to determine the relationship between factors affecting a
process and the output of the that process
Terminologies in Design of Experiments
Response: It’s the output or Y
Factors: These are the Inputs or X. It’s a independent variable that may affect the response
Level: Number of categories of X

E.g. Factor- Temperature has 2 levels Low and High
If it has 3 settings like Low, Medium and High, then are 3 levels
Noise Factors: These are uncontrollable or undesirable factors which may or may not impact Y. Its too expensive to
control as a part of experiment. Eg. Room Temperature, Humidity etc. which are beyond your control to some extent
 Replication: Replication occurs when the entire experiment is performed more than once for a given set of
Independent variable. Each repetition of experiment is called replicate
 Randomization: Is used to assign treatments to experimental unit so that each unit has an equal chance of being
assigned a particular treatment
 Runs: Depending upon what type of design we are going for and how many repetition and replication we would like
to do, the total run are decided
Major Approaches to DOE
Full Factorial
Design
Factorial Design
Fractional
Major Factorial Design
Approaches to Taguchi Design
DOE
Response
Surface Model
Factorial Design
Factorial design is specially designed experiment where we try various runs at specific level of different factors and
then we carefully analyse the output to explain the functioning of the process
Two commonly used factorial design

 Full Factorial Design
 Fractional Factorial Design
Full Factorial Design
Full factorial design is the type of experiment where experiments are run at every possible permutation and combination
of levels of different factor. This experimental design requires maximum number of experiments
The number of experiments required to conduct full factorial design can be found using formula
Where “L” is number of levels and “F” is number of factors
If we have three factors (temp/pressure and catalyst) with two levels each. Then the no: of experiments required for full
factorial design would be 8. If we replicate the runs twice then total no; of experiment that we need to conduct for full
factorial design would be 16. The biggest disadvantage of full factorial design is that we have to conduct large no: of
experiments
Factorial Design
Fractional Factorial Design
This is always not possible to conduct large no: of experiments (such as full factorial design) especially in cases where
cost of running experiment is very high
In such cases, at times we use lesser number of runs than the full factorial design, in above example of 3 factors and 2
levels, we may just conduct 8 or 16 runs instead of 32 runs and we may derive useful information from the experiment
This design will not give us correct idea of interaction effect between two or more factors. This experimental design
however is capable of giving fair idea about the main effect
CREATING A FULL FACTORIAL DESIGN IN MINITAB STEP 1
Tool Bar Menu > Stat > DOE > Factorial > Create Factorial Design
23 Design
1. Select Default
Generators (Yates Is
Default)
2. Set Number Of
Factors To Three
3. Go to Designs
Select Full factorial Ignore for now
1. Select Options
2. Un-check
Randomize runs
Select Factors
Input the Factor

Names and Levels
Questions
Questions
1) In equation Y = f ( X ) ; X is
 Independent variable
 Dependent Variable
 Critical variable
 Customer variable
2)An acceptable six sigma project must

 Impact the bottom line
 Drive improvements in the areas of customer satisfaction
 Value enrichment for the customers
 All of the above
3)Graphical relationship between to variables ( x & Y ) can be done by

 Histogram
 Scatter Diagram
 Cause and Effect Diagram
 Run
Questions
4) For a normal distribution, two standard deviations on each side of the mean would include what percentage of
the total population?
 0.47
 0.68
 0.95
 0.997
5)Most appropriate definition of Standard Deviation is

 Deviation from Mean
 Deviation from individual readings
 Deviation from Target
 Deviation from customer requirements
6) For a normal distribution, following condition is NOT valid

 Unique peak
 Almost like an equal spread
 Coinciding of mean, mode and median
 Bimodal peak
Questions
7)The term used to describe the risk of a Type 1 error in a test of hypotheses is
 Power
 Confidence Interval
 Alpha Risk
 Beta Risk
8) “Robust design” refers to the ability of the product or service:

 to function the same in different conditions
 to remain strong
 to last a long time
 to have a high reliability
9) Successful Six Sigma projects always:

 use designed experiments
 are completed in a short time frame
 impact the bottom line of the enterprise
 all of the above
Questions
10) In project Selection, which among the following should carry highest importance
 Customer complaint data
 Rejection analysis
 Top management vision
 Cost data
11) If variance of normal distribution is 16, then standard deviation is:

 4
 196
 32
 256
12)The mean, median, and mode of a distribution have the same value. What can be said about the distribution?
 it is exponential
 it is normal
 it is uniform
 none of the above
Questions
13)Histogram signifies
 Normal distribution
 Bimodal Distribution
 Graphical evaluation of Normality
 Binomial distribution
14) Which of the following methods is used to develop an exhaustive list of ideas about a subject?
 Fishbone Diagram
 Scatter Diagram
 Brainstorming
 Data Mining
15) FMEA is a tool most appropriate for

 Defect prevention
 Defect Detection
 Defect Prioritization
 Defect Analysis
Questions
16) The purpose of Pareto analysis is
 Defect analysis
 Distinguish between vital few and trivial many
 Data collection
 Root cause analysis
17) In Six sigma project implementation, which among the following should happen first
 Benchmarking data selection
 Defining project charter
 Project approval
 Data collection plan
18) Which of the following statements describes attribute data?

 Number of employees wearing green shirts
 Number of liters of chemical used in a process
 Diameter of a hole
 Miles per liter of automobile fuel economy
Questions
19) In Ishikawa diagrams, the box at the far right usually contains the:
 Problem statement
 Environment factors
 Methods
 Manpower considerations
20) The input categories for a classical cause and effect diagram would NOT include:
 Maintenance
 Manpower
 Machine
 Material
Questions
21) What quality luminary is generally recognized as having created the control chart?
 Deming
 Shewhart
 Juran
 Ishikawa
22) A well-constructed problem statement includes all of the following Except:

 Description of current process performance
 Proposed solution
 Impact if problem is not solved
 Estimate of Cost of Poor Quality
23) The Kano model is used to:

 Measure supplier performance
 Analyze customer requirements
 Describe takt time
 Calculate rolled throughput time
Questions
24) Which of the following is not a define phase tools?
 Voice of customer
 Project Charter
 Design of Experiment ( DOE )
 SIPOC
25) For a normal distribution, following condition is NOT valid

 Unique peak
 Almost like an equal spread
 Coinciding of mean, mode and median
 Bimodal peak
26) Most statistical decisions are made at

 90% confidence level
Questions
27)In an organization deploying Six Sigma, a project for machine improvement is being implemented. The purpose
of the project is sigma improvement on two machines. For analyzing whether the improvement in sigma is
significant before and after , which distribution you will use:
 f distribution
 t distribution
 Chi-square distribution
 Z distribution
28) Overproduction, scrap, waiting, and excess motion are all forms of:
 Muda
 TPM Steps
 VSM Steps
 MURI
29)Which of the following distribution is used in situations that have only two possible outcomes?
 Binomial
 Hypergeometric
 Geometric
 Weibull
Thank You
VINDATI SOLTIONS PRIVATE LIMITED


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Lean Six Sigma- Black Belt

• Keep pace without leaving anyone behind

• Learn as much as you can in this session

 Six Sigma: An overview

 What is Sigma and Six Sigma

 DMAIC, DMADV and DFSS

 Ways to commence a project

 Other used Concept in Six Sigma

 Case studies and dummy project

 What is Lean Sigma

 Difference between Lean and Six Sigma

 Different type of waste

Master Change Management Leader.

Expert in LSS Knowledge and

Yellow Belt “Light” knowledge of LSS

 Totality features of any product which are capable of

 Do the Right thing and do the thing right every time

 American Society of Quality defines quality as “

 Mathematical Equation of Quality

 Quality = Performance / Expectation

Type of Cost Details

Internal Failure Costs External Failure Costs

Rework/Correction Complaint Handling

 Sigma is a Symbol which shows the degree of variation in a process (standard

Motorola had not done any major changes to their products

 The internal defect rate was very high inside Motorola

 The rework and repair rate was high at Motorola

 As an effect of this, customers were lost to the competitors

Bill •Father of Six

What is Six Sigma

 Six Sigma as a Problem Solving Methodology

 Where Y represents the key process outputs (the end product)

 Six Sigma is used as a common yardstick of measurement for business processes

 Six Sigma as a Management System

DMAIC DMADV DFSS

Define Define Design

For Mature Process, when you

Improved Customer Satisfaction

Reduced Cycle Time

Reduce total defects / Errors

Decrease work in progress

Improve process flows

Sigma DPMO Yield %

Type of Discrete Data

 Binomial Data: Yes/No , True/False , 0/1 , Pass/Fail

 Count: Which can be counted

 Nominal Data: Data which have names or labeled

 Ordinal: Data when arranged in some order or sequence

 Percentage: Data which can be defined in Percentage

The Science Of Data

3 Most common Measure of Central Tendency

Mean : Arithmetic average of a set of data

Mean= Total Value / Number of Value

Why did this happen ?

We may make a big mistake only because

 So, we need additional information on variation

Why isn't the average alone, good enough ?

Total transaction Total transaction

7.95 Target = 6 6.10

We need a way to quantify the “spread” in the data

Median= (N+1)/2 th item

 The mode of a set of data is the most frequently observed value

1) Please calculate Mode for the given set of data points:97,8,8,9,14,13,17,56,23,12,14,15,67,65,45,68,8,9,8,8,8

2) Please calculate Mode for the given set of data points:9,8,8,9,14,13,17,9,23,12,14,15,9,67,65,45,68,8,9,9,15,98