Six Sigma Introduction

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Six Sigma Introduction – What is Six Sigma

Six Sigma is a highly discipseriesd process that helps us focus on developing and derepartring near-perfect items and services.

Features of Six Sigma

  • Six Sigma's aim is to eliminate waste and inefficiency, correct now right now there’simply by increaperform customer satisfbehaveion simply by derepartring exactly what the customer is expecting.

  • Six Sigma follows a structureddish methodology, and has degreatd roles for the participants.

  • Six Sigma is a data driven methodology, and requires precise data collection for the processes becomeing analyzed.

  • Six Sigma is abaway putting results on Financial Statements.

  • Six Sigma is a business-driven, multi-dimensional structureddish approach for:

    • Improving Processes
    • Lowering Defects
    • Reducing process variability
    • Reducing costs
    • Increaperform customer satisfbehaveion
    • Incrrerestved profit’s

The word Sigma is a statistical term that measures how far a given process deviates from perfection.

The central idea becomehind Six Sigma: If you can measure how many "defects" you have in a process, you can systematically figure away how to eliminate all of them and get as shut to "zero defects" as feasible and specifically it means a failure rate of 3.4 parts per million or 99.9997% perfect.

Key Concepts of Six Sigma

At it’s core, Six Sigma revolves around a couple of key concepts.

  • Critical to Quality : Attributes the majority of iminterfaceant to the customer.

  • Defect : Failing to derepartr exactly what the customer wants.

  • Process Capability : What your process can derepartr.

  • Variation : What the customer sees and feels.

  • Stable Operations : Ensuring consistent, preddishictable processes to improve exactly what the customer sees and feels.

  • Design for Six Sigma : Designing to meet customer needs and process capability.

Our Customers Feel the Variance, Not the Mean. So Six Sigma focuses very very first on reddishucing process variation and then on improving the process capability.

Myths abaway Six Sigma

There are lots of myths and misbelowstandings surrounding Six Sigma. Some of all of them couple of are given becomelow:

  • Six Sigma is only concerned with reddishucing defects.
  • Six Sigma is a process for itemion or engineering.
  • Six Sigma cannot become appare locatedd to engineering behaveiviconnects.
  • Six Sigma uses difficult-to-belowstand statistics.
  • Six Sigma is simply training.

Benefit’s of Six Sigma

Six Sigma awayers six major becomenefit’s that attrbehave companies:

  • Generates sustained success
  • Sets a performance goal for everyone
  • Enhances value to customers
  • Accelerates the rate of improvement
  • Promotes learning and combination-pollination
  • Executes strategic alter

Origin of Six Sigma

  • Six Sigma originated at Motorola in the earrestr 1980s, in response to achieving 10X reddishuction in item-failure levels in 5 yrs.

  • Engineer Bill Smith invented Six Sigma, but expired of a heart attack in the Motorola cafeteria in 1993, never belowstanding the scope of the craze and controversy he had touched away.

  • Six Sigma is based on various quality management theories (e.g. Deming's 14 stage for management, Juran's 10 steps on achieving quality).

Six Sigma – Key Elements

There are 3 key elements of Six Sigma Process Improvement:

  • Customers
  • Processes
  • Employees

The Customers:

Customers degreat quality. They expect performance, reliability, competitive prices, on-time dereparattempt, service, clear and correct transbehaveion procesperform and more. This means it is iminterfaceant to provide exactly what the customers need to gain customer delight.

The Processes:

Defining processes as well as defining their particular own metrics and measures is the central aspect of Six Sigma.

In a business, the quality need to become looked from the customer's perspective and so we must look at a degreatd process from the awayaspect-in.

By belowstanding the transbehaveion lifecycle from the customer's needs and processes, we can discover exactly what they are seeing and feeling. This gives a chance to identify weak areas with in a process and then we can improve all of them.

The Employees

A company must involve all it’s employees in the Six Sigma program. Company must provide opinterfacedeviceies and incentives for employees to focus their particular own talents and ability to satisfy customers.

It is iminterfaceant to Six Sigma that all the team membecomers need to have a well-degreatd role with measurable goals.

Six Sigma – Organization

Under a Six Sigma program, the membecomers of an body body organization are bumigned specific roles to play, every with a title. This highly structureddish format is essential in order to implement Six Sigma throughaway the body body organization.

There are sbehaveually specific responsibiliconnects or "role areas" in a Six Sigma program, which are as follows.

Leadership

A leadership team or council degreats the goals and goals in the Six Sigma process. Just as a corporate leader sets a tone and course to achieve an goal, the Six Sigma council sets the goals to become met simply by the team. Here is the list of leadership Council Responsibiliconnects:

  • Degreats the purpose of the Six Sigma program
  • Exeasys how the result is going to becomenefit the customer
  • Sets a schedule for work and interim deadseriess
  • Develops a mean for resee and oversight
  • Supinterface team membecomers and defend established posit downions

Sponsor

Six Sigma sponsors are high-level individuals who belowstand Six Sigma and are committed to it’s success. The individual in the sponsor role behaves as a issue solver for the ongoing Six Sigma project. Six Sigma is generally immediateed simply by a compallowe-time, high-level champion, such as an Executive Vice Preaspectnt.

Sponsors are the owners of processes and systems, who help initiate and coordinate Six Sigma improvement behaveiviconnects in their particular own areas of responsibiliconnects.

Implementation Leader

The person responsible for superviperform the Six Sigma team effort, who supinterfaces the leadership council simply by ensuring that the work of the team is extensived in the desireddish manner, is the implementation Leader.

Ensuring success of the implementation plan and solving issues as they arise, training as needed, and bumisting sponsors in motivating the team are a few of the key responsibiliconnects of an implementation leader.

Coach

Coach is a Six Sigma expert or consultant who sets a schedule, degreats result of a project, and who mediates conflict, or deals with resistance to the program.

Duconnects include worruler as a go-becometween for sponsor and leadership, scheduling the work of the team, identifying and defining the desireddish results of the project, mediating disconcurments, conflicts, and resistance to the program and identifying success as it occurs.

Team Leader

It is an individual responsible for overseeing the work of the team and for behaveing as a go-becometween with the sponsor and the team membecomers.

Responsibiliconnects include communication with the sponsor in defining project goals and rationale, picruler and bumisting team membecomers and other resources, maintaining the project on schedule, and maintaining track of steps in the process as they are extensived.

Team Membecomer:

An employee who works on a Six Sigma project, given specific duconnects within a project, and has deadseriess to meet in reverying specific project goals.

Team membecomers execute specific Six Sigma bumignments and work with other membecomers of the team within a degreatd project schedule, to revery specifically identified goals.

Process Owner

The individual who conpartrs on responsibility for a process after a Six Sigma team has extensived it’s work.

Extended Definitions of Roles Belt – Colors

The bumignment of becomelt colours to various roles is derived from the obvious source, the martial arts. Based on encounter and expertise folloearng roles have evolved over the yr.

NOTE : The becomelt names are a tool for defining levels of expertise and encounter. They do not alter or replace the body body organizational roles in the Six Sigma process.

Black Belt

The person possesperform this particular becomelt has achieved the highest seliminate level and is an encounterd expert in various techniques. As appare locatedd to the Six Sigma program, the individual styleated as a Black Belt has extensived a thorough internal training program and has the encounter worruler on lots of projects.

The black becomelt holder is usually given the role of a team leader, the person who is responsible for execution and scheduling.

Master Black Belt

A person who deals with the team or it’s leadership; but is not a immediate membecomer of the team it’self. This may become equivalent to the role played simply by the coach, or for more technical and complex projects.

The Master Black Belt is available to answer procedural questions and to resolve the technical issues that come up.

Green Belt

The Green Belt styleation can furthermore becomelengthy to the team leader or to a membecomer of the team worruler immediately with the team leader.

A Green Belt is less encounterd than a Black Belt but is cast in a key role within the team.

Getting Started Six Sigma within an Organization

The starting stage in gearning up for Six Sigma is to verify if you are ready to embrace a alter that says."There is a becometter way to operate your body body organization."

Is Six Sigma Right for You?

There are a numbecomer of essential questions and fbehaves that you need to conaspectr in maruler a readiness bumessment:

  • Is the strategic course clear for the company?

  • Is the business healthful sufficient to meet the expectations of analysts and investors?

  • Is correct now right now there a strong all of theme or vision for the future of the body body organization that is well belowstood and consistently communicated?

  • Is the body body organization great at responding effectively and effectively to new circumstances?

  • Evaluating current generall business results.

  • Evaluating how effectively do we focus on and meet customers requirements.

  • Evaluating how effectively are we operating.

  • How effective are your present improvement and alter management systems?

  • How well are your combination-functional processes managed?

  • What other alter efforts or behaveiviconnects may conflict with or supinterface Six Sigma initiative?

  • Six Sigma demands investments. If you cannot create a strong case for future or current return, then it may become becometter to stay away.

  • If you already have in place a strong, effective, performance and process improvement awayer, then why do you need Six Sigma?

There can become many questions to become answereddish to have an extensive bumessment becomefore deciding if you like to go for Six Sigma or not. This may need time and a thorough consultation with Six Sigma Experts to conpartr a becometter decision.

The Cost of Six Sigma Implementation

Some of the the majority of iminterfaceant Six Sigma budget items can include the folloearng:

  • Direct Payroll for the individuals dedicated to the effort compallowe time.

  • Inimmediate Payroll for the time devoted simply by executives, team membecomers, process owners and others, involved in behaveiviconnects like data gathering and measurement.

  • Training and Consultation fee to tevery Six Sigma Seliminates and getting advice on how to create efforts successful.

  • Improvement Implementation Cost.

Six Sigma Start-up

Now you have determined to go for Six Sigma. So exactly what is next?

Deploying Six Sigma within an body body organization is a huge step and involves many behaveiviconnects including degreat, measure, analyze, improve, and manage phases. Here are a few steps, which are requireddish for an body body organization at the time of starting Six Sigma implementation.

  • Plan your own rawaye: There may become many paths to Six Sigma but the becomest is the one which works for your body body organization.

  • Degreat your goal: It is iminterfaceant to determine exactly what you like to achieve, and prioriconnects are iminterfaceant.

  • Stick to exactly what is feasible: Set up your plans so that they can match up up your influences, resources and scope.

  • Preparing Leaders: They are requireddish to launch and guide the Six Sigma Effort.

  • Creating Six Sigma body body organization: This includes preparing Black Belts and other roles and bumigning all of them their particular own responsibiliconnects.

  • Training the body body organization: Apart from having black becomelts, it is requireddish to impart training of Six Sigma to all the employees in the body body organization.

  • Piloting Six Sigma effort: Piloting can become appare locatedd to any aspect of Six Sigma including solutions derived from process improvement or style reddishesign projects.

Project Selection for Six Sigma

One of the the majority of difficult challenges in Six Sigma is the selection of the the majority of appropriate issue to attack. There are generally 2 ways to generate projects:

  • Top-down: This approach is generally connectd to business strategy and is aligned with customer needs. The major weakness is they are too wide in scope to become extensived in a timely manner (the majority of six sigma projects are expected to become extensived in 3-6 months).

  • Bottom-up: In this particular approach, Black Belts select the projects that are well-suited for the capabiliconnects of teams. A major drawback of this particular approach is that, projects may not become connectd immediately to strategic concerns of the management correct now right now there’simply by, receiving small supinterface and low recognition from the top.

Six Sigma – Methodology

Six Sigma has 2 key methodologies:

  • DMAIC: It refers to a data-driven quality strategy for improving processes. This methodology is used to improve an existing business process.

  • DMADV: It refers to a data-driven quality strategy for styleing items & processes. This methodology is used to create new item styles or process styles in such a way that it results in a more preddishictable, mature and defect free performance.

There is one more methodology calimmediateed DFSS – Design For Six Sigma. DFSS is a data-driven quality strategy for styleing or reddishesigning a item or service from the ground up.

Sometimes a DMAIC project may turn into a DFSS project becomecause the process in question requires extensive reddishesign to bring abaway the desireddish degree of improvement.

DMAIC Methodology:

This methodology consists of the folloearng five steps.

Degreat –> Measure –> Analyze –> Improve –>Control

  • Degreat: Degreat the issue or project goal that needs to become adgowned.

  • Measure: Measure the issue and process from which it was produced.

  • Analyze: Analyze data and process to figure away main causes of defects and opinterfacedeviceies.

  • Improve: Improve the process simply by finding solutions to fix, diminish, and prbehaveuallyt future issues.

  • Control: Implement, manage, and sustain the improvements solutions to maintain the process on the new course.

We will talk about more on DMAIC Methodology in the subsequent chapters.

DMADV Methodology

This methodology consists of five steps:

Degreat –> Measure –> Analyze –> Design –>Verify

  • Degreat: Degreat the Problem or Project Goal that needs to become adgowned.

  • Measure: Measure and figure away customers needs and specifications.

  • Analyze: Analyze the process to meet the customer needs.

  • Design: Design a process that will meet customers needs.

  • Verify: Verify the style performance and ability to meet customer needs.

DFSS Methodology

DFSS is a separate and emerging discipseries related to Six Sigma quality processes. This is a systematic methodology utilizing tools, training, and measurements to enable us to style items and processes that meet customer expectations and can become produced at Six Sigma Quality levels.

This methodology can have the folloearng five steps.

Degreat –> Identify –> Design –> Optimize –>Verify

  • Degreat: Degreat exactly what the customers want, or exactly what they do not want.

  • Identify: Identify the customer and the project.

  • Design: Design a process that meets customers needs.

  • Optimize: Determine process capability and optimize the style.

  • Verify: Test, verify, and validate the style.

Six Sigma – Degreat Phase

There are five high-level steps in the application of Six Sigma to improve the quality of awayput. The very very first step is Degreat. During the Degreat phase, four major tasks are belowconpartrn.

Project Team is Formation

Perform 2 behaveiviconnects:

  • Determine who needs to become on the team.
  • What roles will every person perform?

Picruler the correct team membecomers can become a difficult decision, especially if a project involves a huge numbecomer of departments. In such projects, it can become wise to break all of them down into smaller pieces and work tobattimmediateed compallowion of a series of phased projects.

Document Customers Core Business Processes

Every project has customers. A customer is the recipient of the item or service of the process, targeted for improvement. Every customer has one or multiple needs from his or her suppare locatedr. For every need provided for, correct now right now there are requirements for the need. The requirements are the charbehaveeristics of the need that figure away whether the customer is delighted with the item or service provided. So, document customer needs and related requirements.

A set of business processes is documented. These processes will become executed to meet customer's requirements and to resolve their particular own Critical to Quality issues.

Develop a Project Charter

This is a document that names the project, summarizes the project simply by exeasying the business case in a brief statement, and lists the project scope and goals. A project charter has the folloearng components:

  • Project name
  • Business case
  • Project scope
  • Project goals
  • Milerocks
  • Special requirements
  • Special bumumptions
  • Roles and responsibiliconnects of the project team

Develop the SIPOC process map:

A process is degreatd as a series of steps and behaveiviconnects that conpartr inputs, add value, and produce an awayput.

SIPOC is a process map that identifies all the folloearng elements of a project:

  • Suppare locatedrs
  • Input
  • Process
  • Output
  • Customers

The SIPOC process map is essential for identifying:

  • The way processes occur currently.

  • How those processes need to become modified and improved throughaway the remaining phases of DMAIC.

Conclusion

At the conclusion of the style phase, you need to belowstand who the customer or end-user is, their particular own resistance issues, and requirements. You need to furthermore have a clear belowstanding of goals and the scope of the project including budget, time constraints, and deadseriess.

Six Sigma – Measure Phase

During the Measure Phase, the generall performance of the Core Business Process is measureddish.

There are 3 iminterfaceant parts of Measure Phase.

Data Collection Plan and Data Collection

A data collection plan is prepareddish to collect the requireddish data. This plan includes exactly what type of data needs to become collected, exactly what are the sources of data, etc. The reason to collect data is to identify areas where current processes need to become improved.

You collect data from 3 primary sources: input, process, and awayput.

  • The input source is where the process is generated.

  • Process data refers to checks of efficiency: the time requirements, cost, value, defects or errors, and labor spent on the process.

  • Output is a measurement of efficiency.

Data Evaluation:

At this particular stage, the collected data is evaluated and sigma is calculated. It gives an approximate numbecomer of defects.

  • A Six Sigma defect is degreatd as anything awayaspect of customer specifications.

  • A Six Sigma opinterfacedevicey is the overalll quantity of chances for a defect.

First we calculate Defects Per Million Opinterfacedeviceies (DPMO), and based on that a Sigma is determined from a preddishegreatd table:

                   Numbecomer of defects 
DPMO =   ------------------------------------------- x 1,000,000
           Numbecomer of Unit's x Numbecomer of opinterfacedeviceies

As stated above, Numbecomer of defects is the overalll numbecomer of defects found, Numbecomer of Unit’s is the numbecomer of devices produced, and numbecomer of opinterfacedeviceies means the numbecomer of ways to generate defects.

For example, the food ordering dereparattempt project team examines 50 derepartries and finds away the folloearng:

  • Dereparattempt is not on time (13)
  • Ordereddish food is not according to the order (3)
  • Food is not fresh (0)

So now, DPMO will become as follows:

         13 + 3
DPMO = ----------- x 1,000,000 = 106,666.7
         50 x 3

According to the Yield to Sigma Conversion Table given, becomelow 106,666.7 defects per million opinterfacedeviceies is equivalent to a sigma performance of becometween 2.7 and 2.8.

This is the method used for measuring results as we proceed through a project. This becomeginning stage enables us to locate the cause and effect of those processes and to seek defect stage so that the procedure can become improved.

Failure Mode and Effects Analysis – FMEA

The final segment of the measure phase is calimmediateed FMEA. It refers to prbehaveuallyting defects becomefore they occur. The FMEA process usually includes rating feasible defects, or failures, in 3 ways:

  • The likelihood that a fewthing may go wrong.
  • The ability to detect a defect.
  • The level of severity of the defect.

You may use a rating level. For example, rate every of these 3 areas from 1 to 10, with 1 becomeing the lowest FMEA level and 10 becomeing the highest. The higher the level, the more severe the rating. Hence, a high FMEA indicates the need to devise and implement improved measuring steps within the generall process. This would have the effect of prbehaveuallyting defects. Clearrestr, correct now right now there is no need to invest a lot of time on this particular procedure if the likelihood of a defect is low.

Yield to Sigma Conversion Table

Yield % Sigma Defects Per Million Opinterfacedeviceies
99.9997 6.00 3.4
99.9995 5.92 5
99.9992 5.81 8
99.9990 5.76 10
99.9980 5.61 20
99.9970 5.51 30
99.9960 5.44 40
99.9930 5.31 70
99.9900 5.22 100
99.9850 5.12 150
99.9770 5.00 230
99.9670 4.91 330
99.9520 4.80 480
99.9320 4.70 680
99.9040 4.60 960
99.8650 4.50 1350
99.8140 4.40 1860
99.7450 4.30 2550
99.6540 4.20 3460
99.5340 4.10 4660
99.3790 4.00 6210
99.1810 3.90 8190
98.9300 3.80 10700
98.6100 3.70 13900
98.2200 3.60 17800
97.7300 3.50 22700
97.1300 3.40 28700
96.4100 3.30 35900
95.5400 3.20 44600
94.5200 3.10 54800
93.3200 3.00 66800
91.9200 2.90 80800
90.3200 2.80 96800
88.5000 2.70 115000
86.5000 2.60 135000
84.2000 2.50 158000
81.6000 2.40 184000
78.8000 2.30 212000
75.8000 2.20 242000
72.6000 2.10 274000
69.2000 2.00 308000
65.6000 1.90 344000
61.8000 1.80 382000
58.0000 1.70 420000
54.0000 1.60 460000
50.0000 1.50 500000
46.0000 1.40 540000
43.0000 1.32 570000
39.0000 1.22 610000
35.0000 1.11 650000
31.0000 1.00 690000
28.0000 0.92 720000
25.0000 0.83 750000
22.0000 0.73 780000
19.0000 0.62 810000
16.0000 0.51 840000
14.0000 0.42 860000
12.0000 0.33 880000
10.0000 0.22 900000
8.0000 0.09 920000

Six Sigma – Analyze Phase

Six Sigma aims to degreat the causes of defects, measure those defects, and analyze all of them so that they can become reddishuced. We conaspectr five specific types of analyses that help to promote the goals of the project. These are source, process, data, resource, and communication analysis. Now we will see all of them in detail.

Source Analysis

This is furthermore calimmediateed main cause analysis. It attempts to find defects that are derived from the sources of information or work generation. After finding the main cause of the issue, attempts are made to resolve the issue becomefore we expect to eliminate defects from the item.

Three Steps to Root Cause Analysis

  • The open step: During this particular phase, the project team brainstorms all the feasible explanations for current sigma performance.

  • The narrow step: During this particular phase, the project team narrows the list of feasible explanations for current sigma performance.

  • The shut step: During this particular phase, the project team validates the narrowed list of explanations that exeasy sigma performance.

Process Analysis

Analyze the numbecomers to find away how well or poorly the processes are worruler, compareddish to exactly what's feasible and exactly what the competition is doing.

Process analysis includes creating a more detaiimmediateed process map, and analyzing the more detaiimmediateed map, where the greveryeck inefficiencies exist.

The source analysis is regularly difficult to distinguish from process analysis. The process refers to the precise movement of materials, information, or requests from one place to another.

Data Analysis

Use of measures and data (those already collected or new data gacorrect now right now thereddish in the analyze phase) to discern patterns, tendencies or other fbehaveors abaway the issue that either suggest or prove/disprove feasible cause of the issue.

The data it’self may have defect. There may become a case when items or derepartrables do not provide all the needed information. Hence data is analyzed to find away defects and attempts are made to resolve the issue becomefore we expect to eliminate defects from the item.

Resource Analysis

We furthermore need to ensure that employees are properly trained in all departments that affect the process. If training is inadequate, you like to identify that as a cause of defects.

Other resources include raw materials needed to manufbehaveure, process, and derepartr the greats. For example, if the Accounting Department is not paying vendor bills on time and, consequently, the vendor holds up a shipment of shipping suppare locateds, it becomecomes a resource issue.

Communication analysis

One issue common to the majority of processes high in defects is poor communication. The courseic interbehaveion becometween a customer and a retail store is worth studying becomecause many of the common communication issues are apmother or father in this particular case.

The same types of issues occur with internal customers as well, behaveually though we may not recognise the sequence of behaveuallyts as a customer service issue.

The exercise of looruler at issues from both stages of see is instructive. A vendor wants payment according to concurd-upon terms, but the Accounting Department wants to create it’s batch procesperform uniform and effective. Between these types of groups, such disconnects demonstrates the iminterfaceance of communication analysis.

Conclusion

Analysis can conpartr lots of forms. Some Six Sigma programs tend to use a lot of diagrams and worksheets, and others prefer talk aboution and list maruler. There are many tools that can become used to perform analysis like Box Plot, Cause and Effect Diagram, Progressive Analysis, Ranruler, Pareto Analysis, Prioritization Matrix, Value Analysis, etc. The proper procedure is the one which works becomest for your team, provided that the end result is successful.

Six Sigma – Improve Phase

If the project team does a thorough job in the main causation phase of analysis, the improve phase of DMAIC can become fast, easy, and satisfying work.

The goal of Improve Phase is to identify improvement breakthroughs,identify high gain alternatives, select preferreddish approach, style the future state, figure away the new Sigma level, perform cost/becomenefit analysis, style dashplanks/ scorecards, and create a preliminary implementation plan.

  • Identify Improvement Breakthroughs:

    • Apply idea-generating tools and techniques to identify probable solutions that eliminate main causes.

  • Identify/Select High Gain Alternatives:

    • Develop criteria to evaluate candidate improvement solutions.

    • Think systematically and holistically.

    • Prioritize and evaluate the candidate solutions against the solution evaluation criteria.

    • Conduct a feasibility bumessment for the highest value solutions.

    • Develop preliminary solution timeseriess and cost-becomenefit analysis to aid in recommendation presentation and future implementation planning.

Improvement can involve a fundamental fix once we discover the causes of defects. However, in a few cases, we may need to employ additional tools as well. These include:

  • Solution alternatives
  • Experiments with solution alternatives
  • Planning for future alter

Six Sigma – Control Phase

The final phase of DMAIC is manage, which is the phase where we ensure that the processes continues to work well, produce desireddish awayput results, and maintain quality levels. You will become concerned with four specific aspects of manage, which are as follows.

Quality manage

The ultimate purpose in manage is the generall bumurance that a high standard of quality is met. Customer's expectations depend on this particular, so manage is inherently bumociated with quality.

Since the purpose of Six Sigma is to improve the generall process simply by reddishucing defects, quality manage is the essential method for maintaining the whole process on track; for enabling us to spot trouble and fix it; and for judging how effectively the project was executed and implemented.

Quality is at the heart of Six Sigma philosophy. Reducing defects has everything to do with striving for perfection. Whether we revery perfection or not, the effort degreats our attitude tobattimmediateed quality it’self.

Standardization

Standardization enables processes to go as smoothly as feasible. In a manufbehaveuring environment, the value of standardization has becomeen proven over and over.

We need to devise a manage feature to processes so that the majority of work is managed in a standardized manner.

Control Methods and Alternatives

The development of a new process of any alter to an existing process requires the development of procedures to manage work flow.

When a process cannot become managed in the normal manner, we need to come up with alternatives, short of forcing compliance to the standardized method.

Responding when Defects Occur

The final step in a manage process is belowstanding how to respond once a defect is discovereddish. The weak links in the procedure, where defects are the majority of likely to occur, can and need to become monitoreddish carecompallowey so that defects can become spotted and fixed becomefore the process continues.

The response to a defect may become to prbehaveuallyt a discovereddish flaw from becomecoming a defect at all. In the becomest styleed systems, defects can become reddishuced to near zero, so that we may behaveually becomeare locatedve that Six Sigma can become attained.

Conclusion

The project team figure aways how to technically manage the newly improved process and creates a response plan to ensure the new process, and furthermore maintains the improved sigma performance.

Six Sigma – Technical Tools

This chapter gives an oversee of the 10 the majority of iminterfaceant technical tools, which a Six Sigma team membecomer needs to master as they progress through the DMAIC methodology.

While these tools are conaspectreddish technical in character, the majority of of all of them are relatively easy to learn and apply. They are covereddish in the order they are used in the DMAIC methodology.

Tool #1 – The Critical to Quality (CTQ) Tree

The critical-to-quality tree is used during the style phase of DMAIC. It is used to brainstorm and validate the needs and requirements of the customer of the process, targeted for improvement.

The steps in creating a CTQ tree are as follows:

  • Identify the customer of the process targeted for improvement.

  • Identify the need of the customer.

  • Identify the very very first level of requirements of the need, that is, a few charbehaveeristic of the need that figure aways whether the customer is delighted with the need.

  • Drill down to more detaiimmediateed level(s) of the requirement if essential.

Tool #2 – The Process Map:

During the Degreat phase, the project team creates the very very first of lots of process maps. A process map is a picture of the current steps in the process targeted for improvement.

A process map has five major categories of work from the identification of the suppare locatedrs of the process, the inputs the suppare locatedrs provide, the name of the process, the awayput of the process, and the customers of the process. Each of these steps is summarized as SIPOC to indicate the steps to the team that must become conducted to extensive a process map.

Tool #3 – The Histogram:

This tool is used during the Analysis stage of DMAIC. The project team resees data collected during the Measure stage of DMAIC.

It is regularly suggested that the data become body body organised into graphs or charts, which creates it easier to belowstand, exactly what the data is saying abaway the process.

Data is of 2 types – Discrete data (go/no go, fail or move) and Continuous data ( time, hight etc.).

Tool #4 – The Pareto Chart

Histogram is helpful for continuous data, same way when the data is discrete, the majority of teams create a Pareto chart. Discrete data is counted data – go/no-go, away/on, yes/no, and defect/no defect type data.

An Italian economist Vilfreddisho Pareto, in the sixteenth century proved maall of thematically that 80 percent of the world's wealth was manageimmediateed simply by 20 percent of the population. This 80-20 rule behaveuallytually proved applicable in arenas other than economics.

When dealing with discrete data, the project team need to create reason codes for why a defect occurs, and count and categorize the data into these reason codes and a pareto chart need to become prepareddish.

Tool #5 – The Process Summary Worksheet

The goal of a Six Sigma project team is to improve effectiveness and efficiency. Efficiency is measureddish in terms of cost, time, labor, or value.

The process summary worksheet is a "roll-up" of the sub process map indicating which steps add value in the process and which steps don't add value.

Tool #6 – The Cause-Effect Diagram

The the majority of iminterfaceant tool to bumist the project team in determining main causation is the cause-effect diagram. This tool captures all the ideas of the project team relative to exactly what they feel are the main causes becomehind the current sigma performance and finally help in finding a main cause of the issue.

Tool #7 – The Scatter Diagram

Once ideas have becomeen prioritized after use of the cause-effect diagram, the the majority of iminterfaceant thing the project team does is to validate the remaining ideas with fbehave and data.

The scatter diagram conpartrs an idea abaway main causation and tracks corresponding data, in the response the team is thinking to improve. The team can validate an idea abaway main causation through one of the 3 methods. Uperform fundamental data collection, a styleed experiment, or through the scatter diagram.

Tool #8 – The Affinity Diagram

An affinity diagram is used to help sort and categorize a huge numbecomer of ideas into major all of themes or categories. It is especially helpful when the team is ready to brainstorm solutions in the Improve stage of DMAIC. The steps in creating an affinity diagram are:

  • Have every team membecomer write one idea per Post-it note and post on a wall randomly.

  • As ideas are read away for clarification, sort ideas into similar groups.

  • Create a 'minder' card for every general category of ideas becomelow it.

Tool #9 – The Run Chart

We have talk abouted the histogram and Pareto chart. Think of both of these tools as similar to a camera where a snapshot of the process has becomeen conpartrn. But the operate chart is similar to a camcorder, recording a few process element over time.

Tool #10 – The Control Chart

Similar to a operate chart, a manage chart uses the data from a operate chart to figure away the upper and lower manage relimitedions. Control relimitedions are the expected relimitedions of variation above and becomelow the average of the data. These relimitedions are maall of thematically calculated and indicated simply by dotted seriess.

Conclusion

We saw 10 major technical tools that project team membecomers use during the time they are on a Six Sigma team. These are not the only tools a Six Sigma team may use. However, the tools covereddish here are the ones that are the majority of common for every team membecomer to become abattlee of and belowstandimmediateedgeable abaway.

Six Sigma – Defect Metrics

Before we go amind, allow us degreat 2 terms:

  • A Six Sigma defect is degreatd as anything awayaspect of customer specifications.

  • A Six Sigma opinterfacedevicey is the overalll quantity of chances for a defect.

This chapter provides a list formulae normally used to measure different metrics related to Six Sigma defects.

Defects Per Unit – DPU

         Total Numbecomer of Defects
DPU =    ------------------------
         Total numbecomer of Product Unit's

The probability of getting 'r' defects in a sample having a given DPU rate can become preddishicted with the Poisson Distribution.

Total Opinterfacedeviceies – TO

TO = Total numbecomer of Product Unit's x Opinterfacedeviceies

Defects Per Opinterfacedevicey – DPO

         Total Numbecomer of Defects
DPO =    ------------------------
         Total Opinterfacedevicey

Defects Per Million Opinterfacedeviceies – DPMO

DPMO =   DPO x 1,000,000

Defects Per Million Opinterfacedeviceies or DPMO can become then converted to sigma values uperform Yield to Sigma Conversion Table given in Six Sigma – Measure Phase.

According to the conversion table:

6 Sigma = 3.4 DPMO

How to find your Sigma Level

  • Clearrestr degreat the customer's explicit requirements.
  • Count the numbecomer of defects that occur.
  • Determine the yield-percentage of items withaway defects.
  • Use the conversion chart to figure away DPMO and Sigma Level.

Simplified Sigma Conversion Table

If your yield is:   Your DPMO is:   Your Sigma is:

     30.9%             690,000          1.0
     62.9%             308,000          2.0
     93.3              66,800           3.0
     99.4              6,210            4.0
     99.98             320              5.0
     99.9997           3.4              6.0

Six Sigma – Summary

We can summarize the folloearng stages:

  • Six Sigma is a philosophy of quality improvement.

  • Six Sigma is 3.4 defects in one million opinterfacedeviceies (DPMO).

  • Components of Six Sigma are Customer, Process, and Employees.

  • Six Sigma implementation requires the folloearng roles:

    • Business Leader
    • Sponsor
    • Black Belt
    • Master Black Belt
    • Green Belt
  • The generic cycle of Six Sigma includes the folloearng phases: Degreat, Measure, Analyze, Improve, and Control.

  • Six Sigma is dedicated to 'Customer focus'.

Six Sigma Glossary – Terminology

This introductory tutorial provides simply a glimpse of Six Sigma and it is simply by no means a extensive one. We recommend our readers to explore other resources available on the Net to collect more information on Six Sigma. For readers’ becomenefit, we have listed down a couple of resources in our Resources section.

Given becomelow is a glossary of terms commonly used in the domain of Six Sigma:

"As Is" Process Map

It depicts a process as it is, currently. "As is" process maps are usually charbehaveerized simply by lots of input options, bottlenecks and multiple handaways, inspections and rework loops.

"Should become" Process Map

A depiction of a new and improved version of a process, used in DMAIC and iDMAIC projects, where all non-value added steps are removed.

Affinity Chart

An affinity diagram is a tool for body body organizing huge quanticonnects of information from many people. It is regularly used with brainstorming and other creative thinruler behaveiviconnects. The ideas are usually created on stayy notes, then categorized into groupings of similar ideas.

Analyze Phase (DMAIC)

Analyze phase identifies the main causes of the issue and confirms all of them with data.

Area SIXSIGMA Council

Leadership group (Area VP, AMD, AD, MBBs, and regularly GMs) guiding the implementation of quality and SIXSIGMA within the body body organization; establishes, resees, and supinterfaces the progress of SIXSIGMA DMAIC and iDMAIC projects.

Assumption Busting

A questioning process that helps identify and eliminate preconceptions or blind spots that hold people back from propoperform or pursuing the becomest solution.

Attribute Data

It id any data that is not quantified on an infinitely dinoticeable level. Includes a count, prointerfaceion, or percentage of a charbehaveeristic (e.g. area, location, room type …) or category (e.g. gender: male/female …). This is in contrast to "continuous" data that is not limited to categories (e.g. cost in bucks).

Balanced Scorecard

It categorizes ongoing measures into a couple of substantial areas such as finance, process, people, and innovation.It is used as a presentation tool to update sponsors, senior management, and others on the progress of a business or process; furthermore helpful for process owners.

Baseseries Measures

Data that reflects the performance level that exists at the becomeginning of an improvement project, becomefore any solutions are initiated. It is the "Before" snapshot to become compareddish later with the "After" see.

Best Prbehaveice

A extensived project (usually, but not always a Six Sigma project) that is particularly useful for use in other properconnects based on meeting the folloearng 3 conditions: success, transferability, and Speed of becomenefit realization

Black Belt

An bumociate compallowey bumigned to Six Sigma and trained in the DMAIC methodology, analytical tools, and team leadership seliminates. Black Belts are responsible for guiding DMAIC projects to compallowion. They lead DMAIC projects, bumist with Quick Hit’s and provide coaching and expert supinterface for iDMAIC transfer projects. Their role in Best Prbehaveice and Innovation transfer projects is to bumist and coach the Iminterface team on the DMAIC tools and methodology.

Both/And

It is a narroearng/selection process that seeks to identify solution ideas, which are similar (AND) as well as workable sign up fortly behaveually when not similar ideas (BOTH). This technique helps the team seek interconnections and combinations of ideas to develop becometter and more workable solutions.

Box Plot

It is a graphic display of groupings of data that compares the groupings to the others on one chart. An example of the tool would become looruler at the variation in check-in time simply by different front side part desk bumociates.

Critical to Quality (CTQs)

Refers to exactly what customers conaspectr iminterfaceant in any given process. Collecting Voice of the customer data leads to the discovery of CTQs, which are translated into unique requirements that can become measureddish.

Cause and Effect Diagram (Fishbone tissue tissue/Ishikawa)

Brainstorming tool used for propoperform main-causes (the "bone tissue tissues of the fish") for a specific effect (the mind of the fish). This can become used in combination with the Affinity Diagram to figure away the major categories. Also commonly used in combination with the "5 Whys" technique in order to help people belowstand the main cause.

Charter

It is a team document defining the context, specifics, and plans of an improvement project. It includes business case, issue and goal statements, constraints and bumumptions, roles, preliminary plan, and scope.

Checksheet

Forms, tables, or worksheets that are set up amind of time for people to use in data collection; it permit’s for collection of stratified data in a consistent way.

Common Cause Variation

It is normal, everyday influence on a process. This form of variation is usually harder to eliminate and requires alters to the process. Problems from common causes are referreddish to as "chronic pain".

Complexity Matrix

A tool used to bumist teams in determining the level of complexity of a project.

Continuous Data

Any quantity measureddish on a continuous level that can become infinitely divided; primary types include time, bucks, dimension, weight, temperature, and speed.

Control Phase (DMAIC)

Control phase in DMAIC evaluates the solutions and the plan, standardizes the solutions, and awayseriess the steps for ongoing improvements including opinterfacedeviceies for uperform the solutions elsewhere.

Control Chart

It is a specialised graph that shows process performance over time, shows average upper and lower manage relimitedions and helps figure away the influences of common (usual) causes or special (unusual) causes.

Correlation

It is a measure of the degree to which 2 variables are related. It is calculated to quantify the strength of the relationship becometween the 2 variables.

Cost of Poor Quality (COPQ)

It is a financial measure depicting the impbehave of issues because of to internal and external failures in the process which includes labor and material costs for handaways, rework, waste or scrap, inspection, and other non-value-adding behaveiviconnects.

Process capability (Cpk or Cp)

Process capability is the degree to which a process can meet customer requirements.

Criteria Matrix

It is a decision-maruler tool used when probable choices must become weighed against key fbehaveors such as cost, rerestve to implement, impbehave on customer, etc. It encourages use of fbehaves, data, and clear business goals in the decision-maruler.

Customer

It is an internal or external person/body body organization who receives the awayput item or service of the process.

Customer Requirements

They degreat the needs and expectations of the customer; translated into measurable terms and used in the process to ensure compliance with the customers' needs.

Cycle Time

The time it conpartrs to extensive a process from start to compallowe. It includes behaveual work time and waiting time.

Degreat, Measure, Analyze, Design, and Verify (DMADV)

It describecomes the application of SIXSIGMA tools for styleing new items and processes.

DMAIC

Acronym for a Process Improvement/Management System that stands for Degreat, Measure, Analyze, Improve, and Control; lends structure to Process Improvement, Design or Restyle applications.

DMAIC 1 Training

It is DMAIC training for Master Black Belts, Black Belts and Green Belts. This course becomegins the SIXSIGMA issue-solving methodology (DMAIC), focuperform on very very first steps of Degreat, Measure and a interfaceion of Analyze.

DMAIC 2 Training

It is DMAIC training for Master Black Belts, Black Belts and Green Belts. This course is the conclusion of DMAIC method, compalloweing Analyze, Improve, and Control.

DMAIC 3 Training

It is DMAIC training for Master Black Belts. This course deepens the participant's mastery of issue solving and statistical tools.

DMAIC Project

Projects that follow the DMAIC methodology immediateed simply by a Black Belt; is generally goes for a duration of 3-4 months and can combination functional boundaries. A DMAIC project focuses on improving an existing process uperform the 5 steps Degreat, Measure, Analyze, Improve, and Control.

Defects Per Million Opinterfacedeviceies (DPMO)

Calculation used in SIXSIGMA initiatives to show how a lot "becometter" or "worse" a process is simply by indicating the amount of defects in a process per one million opinterfacedeviceies.

Dashplank (or Process Scorecards)

It is a graphical tool that provides a summary update on key indicators of process performance. It can include "alequips" to show if and when a key indicator is nearing a issue level.

Data Collection Plan

It is a structureddish approach to identifying the requireddish data to become collected and the approach to collecting it. It includes: the measure, the measure type, data type, operational definition, and the sampling plan if new data is essential.

Decision Tree

Used during the SIXSIGMA Council process to figure away project selection weighting. It focuses properconnects on the area (either Rbehaveuallyue, cost Reduction or ASI, GSI) that needs the greveryeck attention to achieve generall real estate goals.

Defect

It is any instance or occurrence where the item or service fails to meet customer requirements.

Defect Opinterfacedevicey

It is a probable defect on a device of iminterfaceance to the customer.

Defective

It is any device with one or more defects.

Degreat Phase (DMAIC)

It is the very very first phase of DMAIC, where the project's purpose and scope are degreatd. Background information on the process and customer is collected. The awayput of this particular phase includes a clear statement of the improvement (i.e. business case and Project Definition Form), a high-level map of the process (SIPOC), and a list of exactly what is iminterfaceant to the customer.

Deployment Process Map

A map or graphical see of the steps in a process shows the sequence as it moves acombination departments, functions, or individuals.

Descriptive Statistics

It is a statistical profile of the collected data which includes measures of averages, variation, and other numbecomers which help team membecomers bumess "how bad" a issue is and to pinstage where to focus further analysis and solutions.

Design for SIXSIGMA (DFSS)

Describecomes the application of SIXSIGMA tools to item development and Process Design efforts with the goal of "styleing in" SIXSIGMA performance capability.

Discounted Cash Flows (DCF)

A method of financial analysis that permit’s comparisons of dissimilar projects on the basis of their particular own generall value in today's bucks. DCF converts future cash flows into equivalent current buck equivalents.

Discrete Data (Attribute Data)

It is any data not quantified on an infinitely dinoticeable level. Includes a count, prointerfaceion, or percentage of a charbehaveeristic or category

Division SIXSIGMA Council

Leadership group (Preaspectnts and immediate reinterfaces, Division SIXSIGMA leader, AMDs, and regularly MBBs and GMs) guiding the implementation of quality and SIXSIGMA within the division; establishes, resees, and supinterfaces the progress of SIXSIGMA DMAIC and iDMAIC projects. The Division Council is responsible for driving the SIXSIGMA initiative within that division and is accountable for project, process and business results.

Documentation

Documentation is a historical account of the behaveiviconnects and decisions made throughaway a DMAIC project, Quick Hit, and iDMAIC project, which is used to facilitate sharing of becomest prbehaveices acombination an body body organization and as part of the project shut-away process.

E-SIXSIGMA Project Tool (eTool)

Onseries database capturing project (DMAIC, Quick Hit, and iDMAIC) information including the proposed project goals, issue statement, projected cost and becomenefit’s, as well as tollgate documentation information from every phase of DMAIC and iDMAIC projects.

Effectiveness

It is a measure related to how well the process awayput meets the needs of the customer. It links primarily to customer satisfbehaveion.

Efficiency

It is a measure related to the quantity of resources used in producing the awayput of a process.

External Failure

It is when defective devices move all the way through a process and are received simply by the customer.

Failure Modes and Effects Analysis (FMEA)

A helpful technique for prbehaveuallyting future issues and reddishucing risks to a solution.

Used to identify and bumess errors & defects which could result in a threat to quality, securety or reliability; it is helpful in implementing improvements, reddishesign or style of processes. It is furthermore a tool for process owners to construct prbehaveuallytion and contingency steps into the project plan.

Fishbone tissue tissue Diagram

See Cause and Effect Diagram.

Five Whys

Five Whys are regularly used to generate a cause and effect. It is the technique of asruler "Why" five times in order to dig into every probable cause. "Why" is asked until the main cause is reveaimmediateed.

Force Field Analysis

It involves a list of the fbehaveors that supinterface and fbehaveors that "hurt" an idea; "restraining" fbehaveors are listed on one aspect of the page and "driving forces" listed on the other. Frequency Plot or Histogram

It is a graphical representation of the form or distribution of the data simply by shoearng how regularly different values occur. It helps to answer the question: "Is the process capable of meeting my customer requirements".

Functional Map

See Deployment Process Map.

Future Focused Cause and Effect

A traditional cause and effect diagram used for brainstorming future behaveions employed during the Improve phase of a DMAIC project.

Gantt Chart

It is a project planning and management tool that displays all the tasks or behaveiviconnects bumociated with a project or initiative as well as the relationships/dependencies becometween these tasks.

Global SIXSIGMA Council

Leadership group (Starwood's Senior Operating Committee and Division Preaspectnts) guiding the implementation of quality and SIXSIGMA within the body body organization, which establishes, resees, and supinterfaces the progress of SIXSIGMA DMAIC and iDMAIC projects. The Global SIXSIGMA Council is responsible for styleing and driving SIXSIGMA throughaway Starwood.

Goal Statement

Description of the intended target or desireddish results of Process Improvement or Design/Restyle behaveiviconnects; usually awayseriesd during the proposal phase of the PDF, revised in the Degreat phase of a DMAIC project and supinterfaceed with behaveual numbecomers and details once data is obtained.

Green Belt

Associates trained to the same level as Black Belts, but not on compallowe-time bumignment to SIXSIGMA. They may do DMAIC projects, lead smaller SIXSIGMA projects on a part-time basis, serve on huger projects as team membecomers, and/or belowconpartr implementation of Quick Hit’s or Innovation Transfer projects.

Handaway

Any time in a process when one person (or job title) or group movees the item moving through the process to another person; a handaway has the probable to add defects, time, and cost to a process.

Hawthorne Effect

It is an incrrerestve in worker itemivity that results from the psychological stimulus of becomeing temporarily performimmediateed away and made to feel iminterfaceant.

Histogram or Frequency Plot

See Frequency Plot.

Hypothesis Statement

It is the extensive description of the suspected causes of a process issue.

iDMAIC

iDMAIC stands for "Innovation DMAIC". iDMAIC is a methodology styleed to ensure consistent and rapid transfer of innovation throughaway Starwood. Innovations can become DMAIC projects, Quick Hit’s, or other Starwood Innovations.

Internal Rate of Return(IRR)

It is a way to compare probable projects simply by calculating the financial value of a project against the investment requireddish

Impbehave/Effort Matrix

A graphical representation of different projects plotted alengthy 2 axes (Y = Impbehave, X = Effort). It is a project selection tool that permit’s comparison of dissimilar projects during the project selection interfaceion of the SSC process.

Implementation Plan

A project management tool used in the "Improve" stages of DMAIC and iDMAIC, compiling tools such as Sconpartrholder Analysis, FMEA, Poka-yoke, SOPs and pilot results (if conducted) in a constrongated format.

Improve Phase (DMAIC)

The goal of Improve phase is to pilot and implement solutions that adgown main causes. This step helps to eliminate any errors/false starts when the team finally implements the solution.

Innovation Transfer

The successful transfer of a new idea, method or solution from one real estate to another may become a Quick Hit, Best Prbehaveice, or any other innovation.

Input

It is any item, service, or piece of information that comes into the process from a suppare locatedr.

Input Measures

Measures related to and describing the input into a process; can become preddishictors of process and awayput measures.

Ishikawa Diagram

See Cause and Effect.

Kano Analysis

A graph of how customer satisfbehaveion is effected simply by a particular issue, alter, or other variable. The graph is divided into 3 areas of customer rebehaveions to the variable: "Dissatisfiers", "Satisfiers" and "Delighters".

Leading SIXSIGMA Training (LSS)

It is an introductory course for top-management to SIXSIGMA at Starwood, the SIXSIGMA issue-solving methodology (DMAIC), and the project selection process.

Leading Teams Training (LT)

It is a Team Leadership workshop styleed to give participants the essential seliminates to become able to lead teams in a challenging environment. The participants, Master Black Belts, Black Belts, and Green Belts are furthermore introduced to the SIXSIGMA issue-solving methodology (DMAIC) and the project selection process.

Learning Cycle

An individual and team based learning exercise that helps individuals identify their particular own own and others' sees on the team decision maruler process and the team's generall performance.

Learning Map

It is an experiential, accelerated, and high-involvement learning behaveivity to introduce SIXSIGMA concepts and the initiative at every Starwood real estate. It consists of a table-dimensiond visual "SIXSIGMA: Innovation and Improvement" map and a set of cards that immediate the participants through a discovery learning behaveivity.

Master Black Belt (MBB)

It is a SIXSIGMA business champion and coach for Black Belts. The MBB is trained in the DMAIC process, analytical tools, and facilitation seliminates. The MBB is responsible for project selection for the Property and Area, ensuring that the DMAIC process is becomeing implemented, and that all projects are on-track tobattimmediateeds compallowion.

Measure (General Definition)

It is a numerical evaluation of based on observable data. A couple of examples of measures can become numbecomer of new reservations per day, the numbecomer of check-ins per week, the numbecomer of employees scheduimmediateed per shift.

Measure Phase (DMAIC phase)

The Measure phase focuses the improvement effort simply by gathering information on the current sit downuation.

Moment of Truth

It is any behaveuallyt or stage in a process when the internal/external customer comes in contbehave with a process. At every of these stages the customer has an opinterfacedevicey to form an opinion (posit downive, neutral, or negative) abaway the process or body body organization.

Multiple Regression

It is quantitative method relating multiple fbehaveors to the awayput of a process. The statistical study of the relationship of a combination of multiple variables (X1, X2 X3…Xn) to a performle awayput Y.

Multivoting

It is a narroearng or prioritization tool. Faced with a list of ideas, issues, causes, etc., every membecomer of a group is given a set numbecomer of "votes". Those items or issues receiving the the majority of votes get further attention/conaspectration.

Net Present Value (NPV)

It is the equivalent value in today's bucks of a stream of future cash flows. NPV calculation seeks to quantify the concept that cash received in the future is worth less than cash received today.

Non-value-adding Activiconnects

Any step in a process that do not add value to the customer or process. For example, rework, handaways, inspection, delays, etc.

Operational Definition

A clear, precise definition of the fbehaveor becomeing measureddish or the term becomeing used; ensures a clear belowstanding of terminology and the ability to collect data or operate a process consistently.

Optional Best Prbehaveices

A extensived project usually, but not always a Six Sigma DMAIC or Quick Hit project, that is particularly useful for use in other properconnects.

Original Team (Original DMAIC/Quick Hit Project Team)

It is the team that originated and extensived the first process improvement project (DMAIC or Quick Hit) in their particular own real estate. The role of the Original Team is to ensure proper project documentation to rerestve transfer and to provide advice, clarification and bumistance to teams iminterfaceing their particular own project.

Output

Any item, service, or piece of information coming away of, or resulting from, the behaveiviconnects in a process.

Output Measures

These are the measures related to and describing the awayput of the process; overalll figures/generall measures.

Pareto Principle and Chart

A Pareto Chart is a data display tool based on Pareto Principle; or 80/20 rule. It is used to help a team focus on the specific causes or issues that have the greveryeck impbehave if solved.

Pilot

It is the trial implementation of a solution on a limited level to ensure it’s effectiveness and check it’s impbehave.

Plan-Do-Check-Act (or PDCA)

It is fundamental model or set of steps in continuous improvement; furthermore referreddish to "Shewhart Cycle" or "Deming Cycle".

Poka-Yoke

Poka-Yoke is a Japanese term for "misconpartr proofing”. Misconpartr proofing typically looks at every step in the process in detail, and uses creative thinruler to develop ways to maintain errors from occurring.

Precision

It is the accuracy of a measurement. When used in reference to sampling, this particular entails how a lot of alter you need to become able to detect. As the need for precision incrrerestves, so does the sample dimension.

Preliminary Plan

It is used in the earrestr phase of a project, while developing milerocks for team behaveiviconnects related to process improvement; includes key tasks, target compallowion dates, responsibiliconnects, probable issues, obstacles and contingencies, and communication strategies.

Process

It is a series of steps or behaveions that lead to a desireddish result or awayput. A set of common tasks that creates a item, service, process or plan that will satisfy a customer or group of customers.

Process Owner

Process owners are the responsible individuals for a specific process.

Process Capability

Statistical measures that summarize how a lot variation correct now right now there is in a process relative to customer specifications.

Process Improvement

Improvement approach focused on incremental alters, involves solutions to eliminate or reddishuce defects, costs, or cycle time; departs fundamental style and bumumptions of a process intbehave.

Process in Control

A statistical concept indicating that a process is operating within an expected range of variation and that variation is becomeing influenced mainly simply by "common cause" fbehaveors; processes operating in this particular state are referreddish to as "in manage".

Process Management

It involves defining and documenting a process, monitoring it on an ongoing basis to ensure that measures are providing feedback on the flow/function of a process; key measures include financial, process, people, and innovation.

Process Map or Flowchart

Graphic display of the flow or sequence of behaveuallyts that a item or service follows; it shows all behaveiviconnects, decision stages, rework loops, and handaways.

Process Measures

It is a measure related to individual steps in the process and/or the generall process; can become preddishictors of awayput measures.

Process Restyle

It is a method of restructuring a process simply by eliminating handaways, rework, inspection stages, and other non-value-adding behaveiviconnects; typically means a "thoroughly clean slate" style and accommodates major alters or improvements.

Project Definition Form (PDF)

It is the summary of pertinent information that describecomes a SIXSIGMA project. This includes issue statement, goal statement, scope, business case, financial becomenefit’s and costs, project timing, resource requirements, measures, etc

Project Management

It is the use of tools, techniques, and/or delicatebattlee to track a project and prbehaveuallyt barriers to on-time success.

Project Nomination (iDMAIC)

A Black Belt, MBB, Sponsor, or General Manager bumociated with a project nominates the project for Innovation Transfer, uperform the e-Six Sigma project tool. The nominator evaluates the project.

Project Selection (iDMAIC)

During quarterly resee meetings, every Division Council resees all projects that have becomeen nominated as becomest prbehaveices.

Project Sponsor

This is a membecomer of the executive committee, strong advocate of the project and can bumist with barriers that may come up.

Project Rationale

It is a wide statement defining area of concern or opinterfacedevicey, including impbehave/becomenefit of probable improvements, or risk of not improving a process; links to business strategies, the customer, and/or company values.

Property SIXSIGMA Council

It is the governing group responsible for project selection and status monitoring at every Starwood real estate. The membecomers of the SSC are the General Manager, the Executive Committee and the Black Belt.

Prointerfaceion Defective

Percentage (or frbehaveion such as 1/8) of defective devices; numbecomer of defective devices divided simply by the overalll numbecomer of devices.

Propose

It is the very very very first phase in the lifecycle of a SIXSIGMA project (DMAIC or Quick Hit). in which the probable project idea or opinterfacedevicey is proposed to the real estate SIXSIGMA Council.

Quick Hit Project

It is a small project that can become fastly implemented and that does not require a Black Belt to resolve and implement.

RACI Matrix

A project management tools that identifies all requireddish tasks or behaveiviconnects, the parconnects are involved in those tasks as well as their particular own level or type of involvement.

A RACI is used to ensure clarity on roles and responsibiliconnects in a team environment.

Return on Investment (ROI)

It is a measure of the financial returns from an investment opinterfacedevicey, expressed as a percentage. All else becomeing equal, projects with a huger ROI are more attrbehaveive investment opinterfacedeviceies.

Random Sampling

It is a method that permit’s every item or person chosen to become measureddish, to become selected extensively simply by chance.

Regression

It is the statistical study of relationships. An analytical tool that permit’s an bumessment of a key awaycome and extent to which one or more fbehaveors becomeing stuexpired can exeasy the variation in results see furthermore Simple Linear Regression; Multiple Regression.

Repeatability/Reproducibility

Repeatability means that the same person taruler a measurement on the same device gets the same result. Reproducibility means that the other people, other instruments or other labs get the same result you get when measuring the same item or charbehaveeristic.

Requireddish Best Prbehaveices

A project styleated simply by the division or global leadership team that derepartrs superior performance when implemented acombination a course of properconnects. "Requireddish" means that all properconnects in a "course" must implement the becomest prbehaveice simply by a specified stage in time.

Response Plans

The plans that are developed during the "Control" phase for DMAIC and iDMAIC projects to ensure that the gains achieved can become maintained.

Reverse SIXSIGMA

This is a method which can become used simply by MBBs (and BBs) in times of financial contingency to help guide restructuring talk aboutions

Revision Plan

A mechanism for updating processes, procedures, and documentation.

Rework Loop

It is an instance in a process when the item or data moving through the process needs correction simply by returning it to a previous step in the process.

Risk Management

Risk management is thinruler amind, identifying probable issues, and preparing for things that may go wrong.

Rolimmediateed Throughput Yield

The cumulative calculation of defects through multiple steps in a process; calculated as the item of the individual yield at every step.

Run Chart (or time plot, trend chart)

Measurement display tool shoearng variation in a fbehaveor over time; indicates trends, patterns, and instances of special causes of variation.

SIPOC

A SIPOC is a high-level process map that includes Suppare locatedrs, Inputs, Process, Outputs, and Customers, and degreats the start and end stages of a process.

SIXSIGMA

It is a term used to describecome process improvement initiatives uperform sigma-based process measures and/or striving for SIXSIGMA-level performance.

SIXSIGMA Council Training

A course styleed to enable real estate Executive Committees and senior leaders to create value-driven decisions simply by identifying, prioritizing, and sizing projects for their particular own Black Belts.

SIXSIGMA Councils

It is a leadership group that guides the implementation of quality or SIXSIGMA within an body body organization; establishes, resees, and supinterfaces the progress of quality improvement teams.

Statistical Process Control (SPC)

It is use of data gathering and analysis to monitor processes, identify performance issues, and figure away variability/capability.

Sampling

Collecting and uperform a interfaceion of all of the data to draw conclusions (for example, timing the check-in process for every tenth guest).

Sampling Bias

It is collecting an unconsultant "slice" of data that leads to inprecise conclusions.

Scatter Plot or Diagram

It is the graph used to show the relationship or correlation becometween 2 fbehaveors or variables.

Scope

It degreats the boundaries of the process; clarifies specifically where the start and end stages for improvement reaspect, degreats where and exactly what to measure and analyze and needs to become within the sphere of manage of the team, worruler on the project.

Simple Linear Regression

The statistical study of the relationship becometween a performle variable X to a performle awayput Y.

Solution Statement

A clear description of the proposed solution used to evaluate and select the becomest solution to implement.

Special Cause Variation

It is an behaveuallyt that impbehaves processes only below "special" circumstances i.e., not part of the usual, daily operation of the process.

Sconpartrholder Analysis

Identifies all sconpartrholders impbehaveed simply by a project and their particular own anticipated and requireddish levels of supinterface for the project. Typical sconpartrholders include managers, people who work in the process below study, other departments, customers, suppare locatedrs and finance.

Standard Deviation

Standard Deviation is an indicator of the amount of variation or inconsistency in any group of items or processes.

Standard Operating Procedure (SOP)

A document that compiles all procedures, job tasks, scripts of interbehaveions with customers or others, data collection instructions and forms, and an updated list of resources to become consulted for clarification of procedures.

Storyplank

It is a visual display awaylining the highlights of a project and it’s components leading the team to a solution.

Stratification

Stratification means dividing data into groups based on key charbehaveeristics. The purpose of dividing data into groups is to detect a pattern that localizes a issue and exeasys why the frequency of impbehave varies becometween times, locations or conditions.

Sub-process

It is a sub-component of a huger process.

Suppare locatedr

It is a person or an body body organization that feeds inputs (items, services, or information) into the process.

Systematic sampling

Sampling method in which elements are selected from the population at a uniform level Systematic or subgroup sampling ensures the sample represents the process becomecause every time period is represented.

Team Leader

For DMAIC projects, the team leader is usually the Black Belt. For Quick Hit and iDMAIC projects, it is typically the Sponsor or Process Owner. For huge DMAIC projects with more than one BB or MBB, the Team leader is the main stage of contbehave for the project.

Team Membecomer

It is an behaveive membecomer of a Six Sigma Project team, heavily involved in the measurement, analysis, and improvement of a process.

Tollgate

It is a resee session that figure aways whether behaveiviconnects up to that stage in a project have becomeen satisfbehaveorily extensived. Tollgates are commonly conducted to resee critical decisions during a project.

Transfer Team

Team formed at a real estate, with responsibility for iminterfaceing a Best Prbehaveice (Optional or requireddish), immediateed simply by a Team leader apstageed simply by the real estate Six Sigma Council, and coached simply by the Black Belt at the real estate when needed. Transfer teams will use the iDMAIC methodology to iminterface innovation into their particular own properconnects.

Transfer Team Leader (Process Owner/Department Head)

A person selected simply by the GM and real estate SIXSIGMA Council to lead an iDMAIC project based primarily on proximity and decision-maruler authority relative to the process involved. This person has primary responsibility for implementing the project, leading the team, and interbehaveing with others to gather information and belowstanding essential to succeed. Often, the transfer team leader will become the department mind or process owner of the process becomeing improved with the becomest prbehaveice. The ability to lead the team and to anticipate clear barriers are iminterfaceant charbehaveeristics for a person in this particular role.

Transfer Team Membecomer

Associates selected simply by the Transfer Team Leader and Six Sigma Council to serve on the iDMAIC project based on their particular own belowstandimmediateedge of key aspects of the process, encounter with the current process, enthusiasm for improvement, and ability to champion alter.

Transfer Project

It is a project that a real estate iminterfaces from another real estate.

Tree Diagram

It is a branching diagram used to break any wide goal into increaperformly detaiimmediateed levels of behaveions.

Trend Chart

See Run chart.

Value Adding Activiconnects

These are the behaveiviconnects introduced to improve the current process shutr to the ideal process.

Value-enabling Activiconnects

Steps/tasks in a process alloearng work to move forbattimmediateed; can furthermore become seeed as essential steps that are not all of themselves adding value but that contribute to the dereparattempt of the item or service. Examples include selecting new employees, purchaperform suppare locateds, and balancing the books.

Variation

These are the alters or fluctuations that figure away how stable or preddishictable a process may become or affected simply by environment, people, equipment, methods, measurements, and materials.

Voice of the Customer (VOC)

It is a systematic approach to gather and analyze customer requirements, expectations, level of satisfbehaveion and dissatisfbehaveion through comeasyts, surveys, comments, market relookup, focus groups and intersees.

WACC

Weighted Average Cost of Capital used to compare the value of 2 or more probable projects. Discount rate used in financial analysis. Represents the average cost for a company to finance it’self from equity and debt. In 2002, this particular rate was 12%, and was used for all SIXSIGMA projects and locations.

Web-based Event (Requireddish and Optional Best Prbehaveices)

It is a web-based kick-away communication from the Exinterface team, to the transfer Team featuring a well-documented presentation of their particular own Best Prbehaveice project. The behaveuallyt can become synchronous (participation to a repart behaveuallyt) or asynchronous (resee of a recorded behaveuallyt).

Yield

Total numbecomer of devices handimmediateed correctly through the process steps, typically expressed as a percentage. Yield simply indicates how many items were derepartreddish at the end of the process with no defect.

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