Six Sigma : S2-23

BITS Pilani Rama Mohan KV

Pilani Campus Faculty Department

Session 1 14th
January’2024
 BITS Pilani
Pilani Campus

< MM ZG539/QM ZG539, Six Sigma>

Lecture No. 1
Program Intent
COURSE OBJECTIVES
To orient successful professionals on a structured
approach and an appreciative mind set of practicing
continuous improvement
To Familiarize the participants with the Toolsets and
Technology – Getting knowledge of the tools, models
and frameworks that are used to practice six sigma.
Engineering high performance – Applying the
mindset and Toolset to feel the change and achieve
organizational high performance
Culture of Excellence Demonstrating Personal
Excellence and catalyzing change that builds a
Culture that is essential to sustain the six sigma
culture
Learning Outcomes
Participants will gain a solid knowledge of the
theory, composition, and implementation of Six
Sigma initiative.
Participants will become proficient in all of the
analytical tools necessary to define, measure,
analyze, improve, and control Six Sigma
improvement projects
Participants will learn team leadership and
project management skills
Participants will master the skills necessary to
lead a complex process improvement project
that produces bottom- line results.
BITS Pilani, Pilani Campus
Introduction to six sigma

• History of six sigma

• Importance of six sigma
• Six sigma philosophy
• Managing Change

BITS Pilani, Pilani Campus

Why Quality?

5
Quality’s contribution to Profitability

Quality Customer Market

•Better product's and
services
•Improved processes
Satisfaction Share
Compete with value

Price
External
Product Quality
•Reduced Scrap
Productivity
•Decreased
•Improved customer
Response time •Cycle time
•Elimination of setup
Internal Profit
times

Process Quality
•Reduced Rework
•Elimination of in
Cost
process Opportunity for
•inspection profit

Organization
6
Typical Waste….

Wastes of Manufacturing Process Wastes of Service Industry

• Defects • Defects
--- rework
• Waiting
• Unsatisfied Customer
• Processing
---Customer not satisfied, wrong input
• Over production
• Under-utilization of Resources
• Motion
--- Poor usage of infrastructure , manpower
• Inventory
• Over- Processing
• Transportation --- Over-support to customer ,unwanted information
• Under-utilization • Redundant Process steps
• Safety hazards --- Wrong processes / methods

Wastes Kill ….. Business and Profits

7
What is Quality & it’s history?

8
Quality
Simply stated, quality comes from meeting customer expectations. This
occurs as a result of four activities:

1. Understanding customer requirements

2. Designing products and services that satisfy those

requirements

3. Developing processes that are capable of

producing those goods and services

4. Controlling and managing those processes so they

consistently deliver to their capabilities.

9
Walter A W. Edwards Joseph M. Juran Armand Feigenbaum
Shewhart Deming

Philip Crosby Genichi Kaoru

Taguchi Ishikawa

THE QUALITY GURUS

 W. Edwards Deming and
Frederick W. Taylor Walter A. Shewhart used statistics in quality
Joseph M. Juran, students of
wrote Principles of control and inspection, and showed that
Shewhart, went to Japan in
Scientific productivity improves when variation is
1950; began transformation
Management in reduced (1924); wrote Economic Control of
from “shoddy” to “world
1911. Manufactured Product in 1931.
class” goods.

In 1960, Dr. K.
In the late ‘70’s and early ‘80’s:
Ishikawa formalized
Deming returned from Japan to write Out of the Crisis,
“quality circles” - the
and began his famous 4-day seminars in the United States
use of small groups to
Phil Crosby wrote Quality is Free
eliminate variation
NBC ran “If Japan can do it, why can’t we?”
and improve
Motorola began 6 Sigma
processes.

JOURNEY STARTED
• Walter A. Shewhart
• Developed statistical control process
methods to distinguish between random
and nonrandom variation in industrial
processes to keep processes under control.
• Developed the “plan-do-check-act” (PDCA)
cycle that emphasizes the need for
continuous improvement.
• Strongly influenced Deming and Juran.
W. Edwards Deming
– Advocated Statistical Process Control (SPC)
– Methods which signal shifts in a process that
will likely lead to products and/or services not
meeting customer requirements.
– Emphasized an overall organizational
approach to managing quality.
– Demonstrated that quality products are less
costly than poor quality products.
– Identified 14 points critical for improving
quality.
– The Deming Prize
• “A System of Profound Knowledge”
1. Appreciation for a system - A system is a set of functions or activities within an organization that work
together to achieve organizational goals. Management’s job is to optimize the system. (not parts of
system, but the whole!). System requires co-operation.
2. Psychology – The designers and implementers of decisions are people. Hence understanding their
psychology is important.
3. Understanding process variation – A production process contains many sources of variation. Reduction in
variation improves quality. Two types of variations- common causes and special causes. Focus on the
special causes. Common causes can be reduced only by change of technology.
4. Theory of knowledge – Management decisions should be driven by facts, data and justifiable theories.
Don’t follow the managements fads!

THE DEMING PHILOSOPHY

 1. The mission of the firm as a whole is to achieve high product quality. & The mission of each
individual department is to achieve high production quality.
2. Quality is “fitness for use” as viewed by the customer in – design, conformance, availability,
safety and field use
3. Cost of quality - prevention , detection/appraisal and failure

Quality Trilogy
– Quality planning: Process of preparing to meet quality goals. Involves understanding customer
needs and developing product features.
– Quality control: Process of meeting quality goals during operations. Control parameters.
Measuring the deviation and taking action.
– Quality improvement: Process for breaking through to unprecedented levels of performance.
Identify areas of improvement and get the right people to bring about the change.

THE JURAN PHILOSOPHY

• Armand Feigenbaum
• Proposed the concept of “total quality
control,” making quality everyone’s
responsibility.
• Stressed interdepartmental
communication.
• Emphasized careful measurement and
report of quality costs
Philip Crosby
– Preached that “quality is free.”
– Believed that an organization can reduce overall costs by
improving the overall quality of its processes.
Absolute’s of Management
– Quality means conformance to requirements not
elegance.
– There is no such thing as quality problem.
– There is no such thing as economics of quality: it is always
cheaper to do the job right the first time.
– The only performance measurement is the cost of quality:
the cost of non-conformance.
Basic Elements of Improvement
– Determination (commitment by the top management)
– Education (of the employees towards Zero Defects (ZD))
– Implementation (of the organizational processes towards
ZD)
• Genichi Taguchi Quality in Products Quality in Services
• Emphasized the minimization of variation. ü Features ü Reliability
• Concerned with the cost of quality to society.
ü Reliability ü Tangibles
• Extended Juran’s concept of external failure.
ü Durability ü Responsivene
• Kaoru Ishikawa ss
ü Conformance
• Developed problem-solving tools such as ü Assurance
ü Serviceability
the cause-and-effect (fishbone) diagram. ü Empathy
• Called the father of quality circles. ü Aesthetics
ü Perceived
ü Performance
quality
ü Perceived
quality
 From
Motivation through fear and loyalty
Attitude: “It’s their problem”
Attitude: “the way we’ve always done it”
Decisions based on assumptions/ judgment calls
Everything begins and ends with management
Crisis management and recovery
Choosing participative OR scientific management
To
Motivation through shared vision
Ownership of every problem affecting the customer
Continuous improvement
Decisions based on data and facts
Everything begins and ends with customers
Doing it right the first time
Choosing scientific AND participative management

FUNDAMENTAL SHIFT
The evolution of quality: its contribution to business in managing its expectations
Perhaps Quality function in Indian organizations was created to implement standards;
but it has contributed to business goal of ‘ managing customer & stakeholder trust’

The next wave is seeing its

impact on customer’s
profitability

But what
The function now needs to: next?
– Focus on issues beyond product and process quality
– Look into knowledge management, cost of controls,
revenue enhancements
– Ensure alignment with technological interventions and
automations
– Be facilitator of business predictability of performance and
issues
The Evolution of Quality
Each Phase Built on the Structure and Gains From the Previous Phases

Six Sigma - GE
1996
BPR – Michael Hammer
Six Sigma - Motorola 1987 1990

1980: Total Quality Management (TQM)

1970: Zero Defects – Philip Crosby

Statistical Process Control
Deming, Feigenbaum, Juran
1960: Japanese quality Movement – Taguchi, Ishikawa

1940: Statistical Sampling techniques – W. Edwards Deming

1930: Statistical Sampling – Walter A. Shewhart

1920: Time and Motion Studies – Frederick Taylor

19
Evolution of Six Sigma
Walter A. Shewart – Grandfather of Management Science, PDCA cycle Process Control and
Human Factors Analysis. “Economic Control of Quality Manufacturing” and “Statistical Methods
from the Viewpoint of Quality Control”

W. Edward Deming – Father of Total Quality Management (TQM) and his 14 points of
management, 4 points of Profound Knowledge and 7 deadly diseases of poor management.
Changed Japan from the top down. “Out of the Crisis” and “The New Economics.” JUSE named
their highest honor the Deming Prize.

Joseph M. Juran – Changed Japan from the bottom up. Divide the “vital few from the trivial
many” (Pareto Chart) and the spiral of progress in quality (QP, QC, CI). Founder of The Juran
Institute. “The Quality Trilogy”, “Leadership for Quality an Executive Handbook” and “The Quality
Handbook – 5th Ed”

Sir Ronald Fisher – developed the Design of Experiments as a principal problem solving technique
for industrial sciences and management. Fisher & Yates – “Statistical Tables for Biological,
Agriculture and medical Research.”

Genichi Taguchi - Scientifically proved that increases in quality did not increase unit cost - the
Taguchi Quality Loss Function. “Taguchi Methods - Orthogonal Arrays and Linear Graphics.”

20
Evolution of Six Sigma
Kaoru Ishikawa – Significant developer of ISO organization and standards, the cause and effect
diagram, quality circles, the 10 principles of vendee-vendor relationships (father of SRM), 6 pre-
requisites of CWQC and the controversial and questionable 14 differences between Japan and
the West.

Bill Smith – Grandfather of Six Sigma. Pioneered quality control using the statistically shifted six
sigma scale at Motorola Communications. Developed the MAIC cycle (a variation of PDCA)
adding DOE, FMEA, ANOVA and various other tools. Resulted in Motorola winning the first
Malcolm Baldridge National Quality Award – US version of Japan’s Deming Prize.

Mikel Harry – Took Bill Smith’s work and ran with it far and wide, adding to it the customer and
business focus while further defining the MAIC methodology into DMAIC and finally three
business levels of eight methodology steps RDMAICSI. Took Six Sigma to ABB, Allied Signal and
GE. “The Vision of Six Sigma” and “Six Sigma: A roadmap for Breakthrough Profitability”

Bob Galvin (Motorola), Larry Bossidy (Allied Signal now Honeywell) and Jack Welch (General
Electric) made Six Sigma a corporate wide cornerstone of their companies’ business strategy
thus putting it on the radar scope of all prudent C-Level executives worldwide

21
Need of Implementing Six Sigma
Six Sigma is being implemented in the organization as a catalyst for
change in culture and achieve competitive advantage.

Most of the projects are targeted towards cost reduction, business

growth, Quality improvement and customer satisfaction

Both DMADV and DMAIC methodologies are being used to

develop and fine tune both business and enabling processes.

Main goal is to achieve near perfection in meeting customer

requirements and zero defects in all the transactions.
Customers’ wants

•Must Be
Kano Model
•Satisfiers
•Delighters
Delighters
No penalty for not doing them However, if
you do them, you get bonus points
Satisfiers
The better we do, the happier the
customer is (Plane gets to the
destination on time)

Performance

Must Be
The better I do, the less dissatisfied the customer
is.
(e.g., airlines get no credit for getting bags to you
on-time)

Customer Satisfaction
24
25
 What is SIX SIGMA ?

A comprehensive and flexible system for achieving, sustaining

and maximizing business success. Six Sigma is uniquely
driven by close understanding of customer needs, disciplined use of
facts, data, and statistical analysis, and diligent attention to managing,
improving, and reinventing business processes.

Six Sigma - A concept for Quality improvement

The Goal of Six Sigma is not to achieve six sigma levels of quality. It
is about improving profitability, though improved quality and efficiency
are the immediate by-products of Six Sigma.

26
What is Six Sigma?

• Six Sigma is a business philosophy & initiative that enables

world class quality & breakthrough improvement to achieve the
highest level of customer satisfaction

• Setting priority based what is most important to customer

• Intensive use of statistical tools to reduce the variation in the

process for consistent on target performance
The many Facets of Six Sigma

S n Metrics
I n Benchmark
X n Vision
n Philosophy
S n Method
I n Tool
G n Symbol
M n Goal
A n Value
 Definition of Quality as per Six Sigma

Quality is a state in which value entitlement is realized for the consumer and the
provider in every aspect of business relationship.

• Entitlement for companies means that they have rightful expectation to

produce quality products at the highest possible profits.

• Entitlement for customer means they have a rightful level of expectations to

high-quality goods at the lowest possible cost.

29
Six Sigma tells us:

• We don’t know what we don’t know.

• We can’t do what we don’t know.
• We won’t know until we measure.
• We don’t measure what we don’t value.
• We don’t value what we don’t measure.

30
 The Power of Questions

A Question is merely a
problem that has been posed
for solution

The same question invariably

produces the same result.
Question the status-quo / source
to change the result

31
6σ Methodology

Y = f(X) Focus of the 6σ

Approach of
Problem solving

Y X1,.…,Xn
■ Dependent Function ■ Independent Variable

■ Output ■ Input

■ Effect ■ Cause

■ Symptom ■ Problem

■ Monitor ■ Control object

Which one should we focus on the Y or X?

6σ Application assures that problem is solved by focusing on the factors that cause the problem.
32
6σ Definition & Philosophy

6σ Definition Philosophy

LSL USL LSL USL

σ It is a Greek term which
designates the spread or
distribution about the mean
of any process. Defect ! Defect !

Precise But not Not Accurate Not

Accurate: Process is off Precise : High variation in
target the process

6 It is a metric that indicates Six sigma tool

tries to reduce
LSL USL
how well the monitored
business process variation in the
performs. Higher the no., process and
better the process. shifts process
mean towards
the target
33
 Six Sigma: How does it work

Customer and
key stake holders

Business Goals

Operations Goals

Improvement projects

Outside In Focus…..Starts with the Customer

34
Paradigm Shift

From To

1. End result orientation 1. Results through process orientation(BPO)

2. Technology delivers better Quality 2. More involved and trained work force will
deliver better quality

3. Management’s job is to think and 3. Management’s job is to guide; Worker's job is to

plan; Worker's job is to implement what think, plan and implement
is given.

4. Win/lose strategy 4. Win/win strategy

5. Emphasis on profit alone(Bottom line) 5. Emphasis on Quality, leading to profits

35
Quality cost : Paradigm Shift

Old Belief Six Sigma Belief

Control internal & external failure costs Control Internal & External Failure costs
but Increase appraisal and prevention cost but no Increase in appraisal and prevention cost

3s
3σ
4s
Increased Quality Increased Quality
Cost $ 5s
means higher cost reduces Total Cost !
6s

Quality improves Quality improves

Maintain quality at cost of Eliminate losses because of

1. Increased reworks 1. Scraps
2. Internal / External scraps 2. Reworks
3. Increase inspection cost 3. Loss of dissatisfied customer

6 Sigma : Happy customers , Profitable Business 36

Quality levels and effect

Sigma DPMO %
Resultant Situation
Level Figure Defects
• Operational losses of 45%
2 308,507 31 %

• 15 Mins of unsafe water / day

3 66,807 7%
• 7 Hrs of no power / month
• 500 in-correct Surgical ops / week
4 6,210 0.6 %
• 20,000 wrong medical prescriptions / year
• 1 wrong landing of airplane / month
5 233 0.02%
• 200 of mails lost / day

• 1 Min of unsafe water supply each seven month

• 1 hr of no-power , once in 34 years
6 3.4 0.0001% • 1.7 wrong surgical operations / week
• 68 wrong medical prescriptions / year
• 10 mails lost per month

37
 The Goal

To
Optimized processes
that produce defect
Quantum Leap free products and services

From
Fixing products
and services
to become acceptable

38
Influence of Six Sigma Approach

Before After
30

Application
20 of
Six Sigma

10

0
0 10 20 30 40 50
Process before and after Six Sigma 39
3 Dimensions for Process Focus

Im
V
/ D gn
AD

pr DMA
si
M

ov IC
De
SS

em
DF

en
t
Management
BPMS

For existing processes improvement – DMAIC

For development of new products/processes - Design for Six Sigma - DFSS or DMADV

For managing the process : BPMS, QMS, COPC

40
 Six Sigma Methodology

Growth

•People Business Value to customer

transformation
•Processes
Profit to stake
•Strategy
holder
•Problem solving
approach

Fostering the innovation

41
Six Sigma Success Stories

42
Why companies are embracing six sigma?

— Why should you consider a Six Sigma initiative? What’s prompting

so many businesses, prominent and modest, to invest in this funny sounding
business approach? Drawing from these success stories and
those of other companies

— We can define several benefits that are attracting companies to the Six
Sigma Way….

• Generates sustained success.

• Sets a performance goal for everyone.
• Enhances value to customers.
• Accelerates the rate of improvement.
• Promotes learning and “cross-pollination.”
• Executes strategic change

43
Proven benefits of the Six Sigma “system” are
diverse, affecting:

• Cost reduction • Defect reduction

• Productivity improvement • Culture change
• Market-share growth • Product/service development
• Customer retention • And many more.
• Cycle-time reduction

44
Success Stories … .

General Electric

Six Sigma has forever changed GE. Everyone—from the Six Sigma
zealots emerging from their Black Belt tours, to the engineers, the auditors,
and the scientists, to the senior leadership that will take this Company into
the new millennium—is a true believer in Six Sigma, the way this Company
now works.” —GE Chairman John F. Welch1

As Jack Welch explains it:

The best Six Sigma projects begin not inside the business but
outside it, focused on answering the question—how can we make
the customer more competitive? What is critical to the customer’s
success? . . . One thing we have discovered with certainty
is that anything we do that makes the customer more
successful inevitably results in a financial return for us.

45
Success Stories … .

AlliedSignal/Honeywell

The company credits Six

Sigma with a 6 percent productivity increase in 1998 and with its
record profit margins of 13 percent. Since the Six Sigma effort began,
the firm’s market value had—through fiscal year 1998—climbed to a
compounded 27 percent per year.

Allied’s leaders view Six Sigma as “more than just numbers—it’s a

statement of our determination to pursue a standard of excellence
using every tool at our disposal and never hesitating to reinvent the way
we do things.”

As one of Allied’s Six Sigma directors puts it: “It’s changed the way
we think and the way we communicate. We never used to talk about the
process or the customer; now they’re part of our everyday conversation.”

46
Managing Change
How it works?

• The Six Sigma methodology uses data & statistical tools to

systematically improve processes & sustain the process improvements
over a period of time.

• It’s a project based approach consisting five phases driven either

through DMAIC or DMADV resulting in to significant financial impact.

• Six Sigma methodologies used to drive defects to less than 3.4 per
million opportunities.

• It’s a rigorous methodology with clearly defined people structure and

guidelines on phase wise application of tools to be implemented by
Green Belts, Black Belts and Master Black Belts.

• Implemented with the support of a champion and process owner.

 Six sigma : The Organization

Leadership-Governance Linkage
The Organization: • Exec Staff(Who “sponsor Six
Leadership- Sigma" initiative)
Commitment at • Quality Leaders(Who “manage”
Executive Level Six Sigma Initiative)
Governance-
Governance- Implementation
Linkage
Review,Enable,Monitor,Institutionalise •Financial Reviewers
e.g. Quality leaders, Master Black Belts etc. • Human Resources
•Project sponsors
Implementation- •Six Sigma Experts
Scope, Apply Six Sigma Tools And Enhance Business Processes
e.g. Green Belts –top performers who apply Six Sigma on-the-job

49
Investing in dedicated resources
 Six Sigma Drives for Result – Everyone has a role

Exec Management Mid-Management- Working level-

Vision and Ideas Translation of ideas into Execution of projects to
Generation Actionable critical projects deliver results

• Exec leaders set strategic • Black Belts are accountable to

vision/ goals
• Exec leaders and staff select
a few key elements of the vision
that must achieve breakthrough
improvements
• Exec and senior leaders follow
up communicate and review
progress with a set cadence
as part of normal business review
• Division / Dept leaders align their
groups work stream to contribute
to the key elements of the vision
• Division / Dept leaders work with
their groups to break down the work
stream into actionable, measurable
plans and projects
• Division / Dept leaders are
accountable to the successes
of the projects
adhere to six sigma methodology
to systematically move projects
quickly to conclusions
• Management at all levels review
progress of the projects regularly
as part of normal business
review
• Future leaders will emerge
through this process by showing
their ability to focus, team leading
and deliverables

Six Sigma methodology and thinking are the common link across all levels of the organization.
It provides unity of purpose and linkage from vision-to-results
50
Organization / Infrastructure

Sponsor /
Senior executive who sponsors the overall Six Sigma Initiative and
Process
who is responsible for implementing Six Sigma within the business.
Owner
Highly experienced person with four weeks of classroom training, has
managed several projects and is an expert in Six Sigma methods /
Black Belt tools. Responsible for coaching / mentoring / training Green & Yellow
Belts and for helping the Sponsor and Champions keep the initiative
on track.
Professional who acts as a team leader on Six Sigma projects.
Typically has one week of classroom training in methods, statistical
Green Belt tools, and (sometimes) team skills, participates on a Black Belt
project team or leads smaller projects.
Typically has two days of classroom training in methods and basic
Yellow Belt statistical tools, participates on a Green Belt project team or leads
smaller projects.
Professional who has general awareness of Six Sigma (through no
Team Member formal training) and who brings relevant experience or expertise to a
particular project.

51
Benefits of Six Sigma
ility
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P r ion
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SIX SIGMA eas e
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52
Governance Model

Cross Functional
6 s vision Strategic Objectives Selection Criteria –
Trainees / Trainers

Fostering Quality Governance Type of Training &

Culture model Calendar

Project Based
Progress & Review Integrated classification /
mechanism Team Structure Execution for Cost
Savings / Rev Gen
Support Structure for Six Sigma

Senior executive who sponsors the overall Six

Sponsor Sigma Initiative and who is responsible for
implementing Six Sigma within the business.

Highly experienced person with four weeks of

classroom training, has managed several projects
Project Sponsor and is an expert in Six Sigma methods / tools.
Black Belt
Responsible for coaching / mentoring / training
Supported Green & Yellow Belts and for helping the Sponsor
by MBB and Champions keep the initiative on track.
Black Belt
Professional who acts as a team leader on Six
Sigma projects. Typically has one week of
Green Belt classroom training in methods, statistical tools,
Green Belt Green Belt and (sometimes) team skills, participates on a
Black Belt project team or leads smaller projects.

Yellow Belt Yellow Belt Yellow Belt Yellow Belt Typically has two days of classroom training in
Yellow Belt methods and basic statistical tools, participates on
a Green Belt project team or leads smaller projects.
Team Team Team Team
Members Members Members Members Professional who has general awareness of Six
Team Sigma (through no formal training) and who brings
Member relevant experience or expertise to a particular
project.
Roles & Responsibilities in Six Sigma Deployment

Champions: Fully-trained business leaders who lead the deployment of Six Sigma
in significant areas of the business

Master Black Belts: Fully-trained quality leaders responsible for Six Sigma
strategy, training, mentoring, deployment and results

Black Belts: Fully-trained Six Sigma experts who

lead improvement teams, work projects across the
business and mentor Green Belts

Green Belts: Fully-trained individuals who

apply Six Sigma skills to projects in their job
areas

Process Analysts: Individuals who

receive specific Six Sigma training
and who support projects in their
areas
Six Sigma Methodologies

Step 5: Step 5:
Step 1: Step 1:
CONTROL VERIFY
DEFINE DEFINE

DMAIC
DMAIC DMADV
DMAIC
Step 4: Step 2: Step 4: Step 2:
IMPROVE MEASURE DESIGN MEASURE

Step 3: Step 3:
ANALYZE ANALYZE
Six Sigma Methodology Selection
Performance Improvement
Opportunity ( VOC, Deviation )

Identify the process

to be improved

Process
Exists?
Design a new process to built it
Improve the existing process
right first time

DMADV DMAIC

Improvements
Sustained ?

Integration with work

Business Objective
Voice of customer /
Organizational Goals/ Pain Areas
Business Y

Identification of Improvement Areas

Customer Software
Service Level Software Resource
Process Y Satisfaction Development
Agreement Quality Utilization
Score Cost

Six Sigma Black Belt & Green Belt Projects

Project Y Leading to significant Top line improvement with Customer Satisfaction &
Bottom line impact through Revenue generation and cost saving
 CTQ (Critical to Quality) & CTQ Tree

The basic reason any process

exists for is to satisfy the
requirements of the customer / Business CTQ Customer CTQ
Stakeholders. Business
Y
The critical customer satisfaction
parameters can be broadly
categorized under Cost, Quality, Delivery,
Service, productivity etc Internal CTQ
which are called as CTQs
Process
Y
CTQ is a
Product , Process or Service
characteristic Project CTQ
that satisfies a
Customer Requirement Project
(External & Internal – Business Y
Owners, all functions )
Project Classification
Customer Satisfaction
vReduce Software
development lifecycle
vReduce complaint resolution
time
vImprove Accuracy in
understanding of customer
needs
vReduce migration time
vSoftware
vAccuracy of data
transformation
vImprove data reliability
vLowering software running
cost
v Software development
robust to reduce running
cost (DMADV)
Organizational Goals
Revenue Generation
& Cost Reduction
vReduce in Software
development cost
vImprove Resource allocation
vImprove sales/market share
vImprove Desk utilization
vReduce Overhead cost
vReduce system downtime
vNew Software generation
(DMADV)
vNew Process Development
vImprove Software quality
vBuilt it right first time
Employee Satisfaction
vReduce recruitment cycle
time
vImprove transportation
vTraining effectiveness
improvement
vImprove on Joining
deliverables
vEffective recovery of
relocation
vMedical reimbursement
vImprove performance
appraisal system
vLeave management
A Right Project Selection is key to success
Right Project Selection
• Selecting the right project
can have a tremendous
effect on your business. If
done properly,
• Processes will function more
efficiently in 3 to 6 months,
employees will feel satisfied
and
• Appreciated for making
business improvements and
ultimately shareholders will
see the benefit
Wrong Project Selection
• If project selection is done
improperly, a project may be
selected that doesn't have
the full business buy-in,
project roadblocks may not
be removed due to other
business priorities, the team
may feel Ineffective and the
end result may be less than
ideal. No one wins in this
situation
Evaluating the Potential Process Improvement Projects
Here are the guidelines for evaluating potential process improvement projects:

• Ask your business/engagement leader for the three top issues facing the business. Make sure your project is one
of the issues or is directly related.

This will ensure that your management team is giving the project the proper attention and
quickly removing roadblocks.

• What are the three top issues as seen from the eyes of your customers? Look through customer complaint logs,
customers satisfaction surveys, call customers that have stopped your company service, . Create a pareto chart
to prioritize issues.

This will help with project prioritization and project selection.

• Is the project manageable? Can the project realistically be completed by a team within six months?

If longer, you may lose members as they move to other jobs or the team may feel frustrated that they're
not making a difference.

• Will the project have a significant impact on the business processes or financial bottom line?

Don't embark on a project without knowing what the benefits are to the business. This will keep your
team motivated along the way.

• What is your process capability? If you haven't been measuring your process, how do you know it needs
improvement?

Make sure you know what amount of defects the process is currently producing and define the objective
of the project clearly.
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