1 - Define Phase Sindna

New Working Culture
PANASONIC PEDSG
SinDNA (Six Sigma)
Bronze Gene- Green Belt Training
DEFINE Phase
Facilitator / Consultant:
Dennis
Prepared by: Dennis Copyright © PEDSG 2008. All rights reserved. Page 1
Lesson Content
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1. Six Sigma Overview

2. Project Selection
3. Project Definition
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1. Six Sigma
Overview
Six Sigma Ownership
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Recognize by Champions (Gold Gene)
Define
Measure
Project Teams
Analyze - Black belt (Silver Gene)
- Green belt (Bronze Gene)
Improve
Control
Realize Process Owner / Finance Rep.
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It all started from the Customers …

– They just want to be loved
– They also want to be listened and been listened for
actions
If things are not started with the customer, an

organization may well end without the customer!
Customer voice need to be addressed . . .
- We name it Voice of the Customer (VOC)
What is Voice of Customer?
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• The process of gathering, analyzing, and integrating

customer input back into the organization’s operation.
• Not only a business crucial for success in the 21st

century.
• One of the most critical component and an integrated

part of Six Sigma implementation.
The importance of VOC
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Gather Customer Critical (CTQ) requirement is necessary

to ensure process are designed to meet those
requirements.
1. The job of Six Sigma Team is to translate the

unclear feedback into measurable requirements and
2. Through further questioning of the customer using
special language and examples.
Translating VOC Into CTQ Attributes
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Voice of Customer VOC Theme Critical To Quality (CTQ)

(VOC) Statement Attribute
The service here is lousy! Customer needs A sale person will greet
There is no salespeople readily available sales customer within 60 second
in sight! staff. upon their entering the
department.
The application approval Customer need a Customer will be notified of

process takes too long. I quicker response time their application results within
don’t know when my loan after submitting their 3 working days after
will ever get approved. loan application. submittal.
There is no support on Customer need New customer will receive

how to use this company assistance in hand-on training within 48
equipment! The learning how to use the hours of equipment
instructions are confusing equipment. installation.
and I can’t get to work for
me.
Voice of Customer leads us to drive Six
Sigma Initiative? New Working Culture
In today’s highly competitive business

environment, it is not how successful an
organization wants to be.
It is how effective and efficient an organization

understand and address customer wants and stay
profitability.
The answer is: Six Sigma and beyond .....
What is Six Sigma Initiative?
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• A statistical measure of the performance of a

process or a product / service.
• A goal that reaches near perfection for
performance improvement.
• A system of management to achieving lasting
business leadership and world – class
performance.
Understanding what Six Sigma Initiative is?
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• Six Sigma is not a problem solving and quick fix tool but it
is a business strategy …
• Six Sigma is an evolutionary methodology that
breakthrough traditional and conventional thinking,
approaches and culture.
• Benefits of Six Sigma program can be quantified in dollar
terms.
• Six Sigma offers a standard of excellence and a common
goal for continuous improvement for achieving quality,
low cost and shorter turn around time.
Suitable Six Sigma Initiatives
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Suitable for Six Sigma

projects
Using the Concept of :
DMAIC
Simple Departmental
Improvement or
straight forward types
of projects Using the Concept of :
7 basic QC tools
What is Six Sigma Strategy?
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• Customer
Focused
• Reduce
Defects • Center around
Target
• Reduce
Variation
Six Sigma – Aggressive Goal
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PPM
2 308.537
3 66,807
4 6,210
5 233
6 3.4
Process Capability Defects per Million OPP.
Sigma is a statistical unit of measure that reflects process

capability.
The sigma scale of measure is perfectly correlated to such
characteristics as defect-per-unit, parts-per-million defective,
and the probability of a failure / error.
The Goals of Six Sigma
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Defect Reduction
“Cost of Quality” Improves
Improved Customer Satisfaction
Higher Profit
Six Sigma Phases (DMAIC)
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Definition Define
Measure
Characterization
Analyze
Improve
Optimization
Control
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Questions and Answers
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2. Six Sigma Project

Selection
Objectives
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• To address the MOST IMPORTANT Phase in all

Six Sigma projects & the difference between
success & failure.
• To define the importance of selecting an
appropriate Six Sigma Project for Green / Black
belts (Silver Gene)
• To define the critical roles of Champions in the
“recognize phase” of Six Sigma projects.
Types of Project
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Black (Silver Gene) / Green Six Sigma Projects
“Save-the-World”, “Ocean boiling”

Logic projects or Management Problems
& Intuition
Types of
projects
Too
Difficult Too Difficult
Easy
Types of Project
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“Too Easy” type of projects :

• Projects that take minimum afford or evaluations to
derive a workable solutions.
(Straight-forward solutions)
• Usually Less Attractive Savings.
Example :
• Simple improvement of house keeping.
• Straight forward mistake proofing devices.
• Improvement of work flow arrangement.
Types of Project
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“Difficult” type of projects :

• Projects most suitable to assign to Green / Black belts.
• It usually involved quite extensive & in-depth
evaluations before arriving to a solution..
• It usually takes NOT MORE than 4 months to
complete & with very attractive savings.
• Issues that are closely related to company’s business
goals.
Types of Project
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“Difficult” type of projects :
Examples :
• Low yield & utilization of machines.
• Long cycle time of machine / processes.
• High scrap, rework, reject, inventory, operating
cost, maintenance & COPQ.
• Improvement of poor process capabilities.
• Unpredictable process performance … etc.
Types of Project
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“Too Difficult” type of projects :

• Projects that usually have a VERY LARGE scope.
• It usually involved in “Executive decisions”
Examples :
• Scrap reduction in the whole company.
• Consolidation of storage area in the company.
• Quality improvement in the company.
3- Typical Types of Sigma Projects
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• Operational Projects :
Projects that deal with manufacturing of products and

processes.
Example:
Part Assembly, degreasing, drilling, machining, metal
stamping, plastic injection, forming, cutting, tapping,
welding, delivery, packing, soldering, forging, …etc.
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• Transactional Projects :
Projects that deal with information flow, paper flow or

human related processes in term of “Service”.
Example :
Order processing, planning process, shipping &
receiving, procurement activities, payroll, documentation
processes …etc.
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• Engineering & Design Projects :
Projects that deal with existing / new product design &

development or process / line design.
Example :
Improvement of machines / lines, automation, …etc.
Project Selection
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• Why do we need to emphasis the need for Project

Selection ?
This is a Process of “Recognizing” and “Defining”

a suitable Six Sigma project for undertaking by the
Black / Green Belts.
It is considered as the Most Critical step to the

success of any projects.
Project Selection … SUCCESS stories
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• Project selected is directly aligned to department and

business objectives.
• Projects having a narrow scope. (“start small”)
• Staff are adequately trained & have the right attitude.
• Project selected “fits” the Black / Green Belts.
• Champions diligently lead & committed to their projects
and ensure their teams co-operate well.
• A good attitude towards the Six Sigma culture change.
Project Selection … the SAD stories
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The biggest failures are :

• Champions are “not driving” the project selection
process, resulted in Black / Green Belts looking for their
own projects.
– This may not align the projects’ objectives to their Business
Objectives.
– Nobody willing to give out their resources for the projects as it is
not supported by the management.
• Champions does not prepare enough “Project queue
list”.
– Since there is NO Project Queue List, the Black / Green belts
are being set “Free”.
– With a Good excuse of NO project available, … leads to –
Program stand-still!
Project Selection … the SAD stories
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• Project’s scope too wide or too difficult.

– Leads to long project cycle time.
– Everybody get frustrated & lost interest in the project.
– Team become confused, run out of guidance & tools
to continue further.
Bad Choices of Project
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• Low hanging “Fruits”, too simple for well trained staff.

Should just do it!
• Cost saving through redesign & renegotiation with
vendors or customers.
• Management problems or problem needed executive
decisions.
• Inherent raw material defects.
• “SOLUTIONS LOOKING FOR A PROJECT”
Source of Potential Projects
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“Reduction “ projects: “Improvement “ projects:

• Reduction of rejects. • Improve process cycle time.
• Reduction of scraps. • Improve efficiency / yield.
• Reduction of consumption. • Improve response time.
• Improve process capability.
• Reduction of inventory.
• Improve machine utilization.
• Reduction of Cost.
• Improve production rate.
• Reduction of movement.
• Reduction in man hours. “Elimination” project :
• Elimination of redundancy.
• Elimination of extra process.
• Elimination of errors
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The Project Charter
Project Charter Overview
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Business
Communication
Plan Case
Preliminary
Project Problem
Project Plan Charter Statement
Goal
Project
Statement
Scope
Key Elements of a Project Charter
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The important of the project relative to the

Business
Case
strategic goals of the company as well as the
likely consequences if the project is not done.
Problem
The problem statement describes why the
Statement project needs to be done.
Goal The goal statement describes the expected

Statement customer and results of the project.
Key Elements of a Project Charter
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Project It sets the boundaries of what is included and

Scope what is excluded.
It is critical to the success of a Six Sigma

Preliminary
Project Plan project. The targeted date to complete the 5
phases of the DMAIC.
Communication
A communication plan is the tool to ensure
Plan coordination.
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3. Project Definition
Objectives
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• To understand the Importance of a good

project definition.
• To define the methods of defining an Six

Sigma Project.
Project Definition – How?
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Step 1 – Define problem statement
Step 2 – Define scope of project
Step 3 – Define target / objective
Step 4 – Define measure metrics
Step 5 – Define projected benefits
Prior to “definition”, there should be some study or data

collected for the “problem. (from “Gap-analysis”)
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Purpose :
• To define the problem & communicate the problem to others.
• Enable us to focus & link to our business or departmental goals.
A good problem statement consists of :

1. What goes wrong?
2. Where it happens?
3. When it occurs?
4. To what extent?
5. How do we know?
On the other hand, it should NOT contain:

1. Cause of the problem
2. Solution to the problem
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Example:
“Customer in Japan is not satisfied with
our last month acceptance performance,
where the rate has decreased to 85% and
reject claims are also doubled”.
What? Customer …is not satisfied with our …Acceptance

Performance
Where? …in Japan …
When? …last month…
To what extent …has decreased to 85% …
How do we know? …Reject Claims are also doubled
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1.More examples:
“The production yield at the surface plate line is suffering

since the relocation. The yield has dropped to only 70%.
Yield before the shift exceed 95%”.
“There is an increase of credit notes generated for oversea

customer accounts since June 2002. It increased from 21
cases to 98 cases. The customer service also received
complaint from these accounts”.
What goes wrong?
Where it happens?
When it occurs?
To what extent?
How do we know?
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Problem Statement:
ABC company is not satisfied with our delivery

performance of our radio cover since the second
last delivery. The ‘on-time score’ has decreased
to 85% due to the two faulty air-cylinder that
delayed the production. They have requested for
a thorough ‘preventive maintenance program”
for the air-cylinder.
What do you think about the statement?
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Scope of project usually required some basic team

activities with brain-storming, causes & effect studies,
Pareto charting or more tools.
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Common mistakes:
Scope too broad … due to poor data or communication
• We call it the … “solve World hunger” or “ocean boiling”
projects.
• Symptoms: Many different outputs, unclear goals, poorly
defined problem statement, un-measurable outputs…
etc.
• Example: Incoming material quality, overall reduction in
scrap, …etc.
• Solution: “Break” the problem into several projects
instead of one.
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Other mistakes:
• Too easy … “Solution looking for problem”
If solution is known ….. JUST FIX IT !
• Management issues.
• Long term development project involved in large capital
investment and time.
• Cost reduction by vendor.
• Process / product re–design.
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Target / objective should be set at a realistic level. Avoid

the “zero defect” goal, if possible.
“Everyone knows that there are variation in every process.

We can minimize it … we can control it but we cannot
totally eliminate it … so acknowledge it and manage it!”
On the other hand…

An easy target will lead to … “Success before work”
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Guidelines:
• Target & Objectives should be clearly defined
and understood by the whole team.
• Target should aimed to have 50% to 70%
improvement for black belt’s projects.
• We should know our “entitlement” – Best that
can be done with the existing process or
technology.
• Avoid too lengthy time line. Set your “time limit”
for the project below 4 months.
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Examples:
• Increase the acceptance rate from 85% to 95.5%, a 70%
improvement from our entitlement of 100%
• Reduction of defect rate for:

• Process from 1% to 0.5%
• Process from 1.5% to 0.3%
• Process from 0.5% to 0.1%
• Reduce the lubricating usage by 70% from current rate.
• Reduce paper consumption in the office from 300 rims to 100

rims.
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Why do we need a measurable metrics?
• To measure your success – Primary metric.
• To prevent unintended consequences due to

any process changes, i.e., avoiding problem
being ‘transferred” to other areas –
Secondary metric.
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Primary metric
• Must be consistent with the problem statement.
• It use to track progress towards the project target &
objective.
• Usually reported using time-series charts or equivalent.
Example:
• Process Cpk or Ppk.
• Defect per unit.
• Cycle time.
• Yield (Classified or roll throughput).
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Secondary metric
• Is used to keep one ‘honest”.
• Preventing problem from passing from one area to

another one.
• More than one secondary metric might be required to

save guard our success.
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Examples:
1. Cycle time reduction project
• Primary metric : Cycle time / production Unit
• Secondary metric : Man hours / production Unit
2. Cost of usage project
• Primary metric : Machine down – time
• Secondary metric : Overtime spend
3. Defect reduction project
• Primary metric ; DPU, DPPM or reject rate
• Secondary metric : Cost / unit, cycle time / unit
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Example
What could go wrong using overtime as the only metric?
Operators’ Overtime
14%
12%
10%
Overtime %
8%
6% Baseline
4% Actual
2% Objective
0%
Sep-03
May-03
Aug-03
Mar-03
Jun-03
Feb-03
Apr-03
Jan-03
Jul-03
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Having ‘Head count” as a Secondary Matrix to safe guard

the Primary Matrix.
Operators’ Headcount
10%
9%
8%
7%
Headcount %
6%
5%
4%
3% Baseline
2% Actual
1%
0%
Sep-03
May-03
Aug-03
Mar-03
Jun-03
Feb-03
Apr-03
Jan-03
Jul-03
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Monitoring both the matrixes at the same time!

Operators’ Overtime
14%
12%
10%
Overtime %
8%
6% Baseline Primary Matrix
4%
Actual
2%
Objective
0%
Sep-03
May-03
Aug-03
Mar-03
Jun-03
Feb-03
Apr-03
Jan-03
Jul-03
Operators’ Headcount
10%
9%
8%
7%
Headcount %
6%
5%
4%
3%
Baseline
Secondary Matrix
2% Actual
1%
0%
Sep-03
May-03
Aug-03
Mar-03
Jun-03
Feb-03
Apr-03
Jan-03
Jul-03
Step 5 – Define projected benefits
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The main objective for a ‘projected

benefits is to quantify the effects of
achieving the targets.
From the primary & secondary metrics,

potential project savings can be
calculated in terms of dollars & cents.
Example: Project Charter
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Problem Statement
Timeline
High failure cost due to tighten coil height specification after
Customer complaint on Co-Planarity problem Phase Start Date Status
Project Objective DEFINE 27 Sep 04 Completed
-To reduce Coil Height defects rate from 1.4 % to 0.39% by
MEASURE 18 Nov 04 Completed
Mar 05
- To eliminate Co-Planarity problem ANALYZE 17 Dec 04 Completed
Project Scope IMPROVE 18 Mar 05 Completed
Power Choke Coil NX model CONTROL 31 Mar 05 Completed
Benefit/ Saving
Measurement Metric Projected Saving:
Primary Metric S$32.5K per year
Metric Baseline Entitlement Target Saving Calculation Formula:
Reduce Coil Height 1.4% 0.1% 0.39 % (B – E)*70% * Qty / yr * $/ pc
= (1.41% - 0.1%) *70% *(14218200*$0.251 )
Other Benefits:
Secondary Metric Improve Productivity
Metric Baseline Entitlement Increase morale towards daily work & activity
Pitch time 25.5 secs 55%
Team Member Selection
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Critical point:
• Team member SHOULD “contain” staff from different
disciplines and selecting the “right person for the job” –
production, quality, engineering, planning … etc.
• Champions’ duty to discuss with their “Bosses” on

releasing them for project involvement. Inform the
process owner on project undertaking.
Team Member Selection
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• Consider the size of the team. “Maximize your

resources”
– Recommend ≤ 5, including Leader
– Not to have too many members that are not actively
contributing.
– Release some resources for others.
• Ensure member involved NOT MORE THAN ONE

project, if possible. So to allow more to participate and
ensuring focus to the team.
New Working Culture
End of Lesson !
Thank you for your time

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New Working Culture

Bronze Gene- Green Belt Training

1. Six Sigma Overview

Recognize by Champions (Gold Gene)

Realize Process Owner / Finance Rep.

It all started from the Customers …

If things are not started with the customer, an

• The process of gathering, analyzing, and integrating

• Not only a business crucial for success in the 21st

• One of the most critical component and an integrated

Gather Customer Critical (CTQ) requirement is necessary

1. The job of Six Sigma Team is to translate the

Voice of Customer VOC Theme Critical To Quality (CTQ)

The application approval Customer need a Customer will be notified of

There is no support on Customer need New customer will receive

In today’s highly competitive business

It is how effective and efficient an organization

The answer is: Six Sigma and beyond .....

• A statistical measure of the performance of a

Suitable for Six Sigma

Sigma is a statistical unit of measure that reflects process

“Cost of Quality” Improves

Improved Customer Satisfaction

Questions and Answers

2. Six Sigma Project

• To address the MOST IMPORTANT Phase in all

Black (Silver Gene) / Green Six Sigma Projects

“Save-the-World”, “Ocean boiling”

“Too Easy” type of projects :

“Difficult” type of projects :

“Difficult” type of projects :

“Too Difficult” type of projects :

Projects that deal with manufacturing of products and

Projects that deal with information flow, paper flow or

• Engineering & Design Projects :

Projects that deal with existing / new product design &

• Why do we need to emphasis the need for Project

This is a Process of “Recognizing” and “Defining”

It is considered as the Most Critical step to the

• Project selected is directly aligned to department and

The biggest failures are :

• Project’s scope too wide or too difficult.

• Low hanging “Fruits”, too simple for well trained staff.

“Reduction “ projects: “Improvement “ projects:

The Project Charter

The important of the project relative to the

Goal The goal statement describes the expected

Project It sets the boundaries of what is included and

It is critical to the success of a Six Sigma

Questions and Answers

• To understand the Importance of a good

• To define the methods of defining an Six

Step 1 – Define problem statement

Step 2 – Define scope of project

Step 3 – Define target / objective

Step 4 – Define measure metrics

Step 5 – Define projected benefits

Prior to “definition”, there should be some study or data

A good problem statement consists of :

On the other hand, it should NOT contain:

What? Customer …is not satisfied with our …Acceptance

“The production yield at the surface plate line is suffering

“There is an increase of credit notes generated for oversea