Six Sigma Introduction


Six Sigma Introduction – Wmind wear is Six Sigma

Six Sigma is a highly discipseriesd process tmind wear helps us focus on generateing and delivering near-perfect products and services.

Features of Six Sigma

  • Six Sigma's aim is to eliminate waste and inefficiency, generally thereby increaperform customer satisfworkion by delivering exworkly wmind wear the customer is expecting.

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

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

  • Six Sigma is about placeting results on Financial Statements.

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

    • Improving Processes
    • Lowering Defects
    • Reducing process varicappotential
    • Reducing costs
    • Increaperform customer satisfworkion
    • Incrrelayved profit is

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

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

Key Concepts of Six Sigma

At it is core, Six Sigma revolves around a few key concepts.

  • Critical to Quality : Attributes many kind of iminterfaceant to the customer.

  • Defect : Failing to deliver exworkly wmind wear the customer wants.

  • Process Capcappotential : Wmind wear your own process can deliver.

  • Variation : Wmind wear the customer sees and feels.

  • Stable Operations : Ensuring consistent, pcrimsonictable processes to improve exworkly wmind wear the customer sees and feels.

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

Our Customers Feel the Variance, Not the Mean. So Six Sigma focuses preliminary on crimsonucing process variation and then on improving the process capcappotential.

Myths about Six Sigma

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

  • Six Sigma is only concerned with crimsonucing defects.
  • Six Sigma is a process for production or engineering.
  • Six Sigma cannot be applayd to engineering workiviconnect ups.
  • Six Sigma uses difficult-to-belowstand statistics.
  • Six Sigma is simply training.

Benefit is of Six Sigma

Six Sigma provides six major benefit is tmind wear attrwork companies:

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

Origin of Six Sigma

  • Six Sigma originated at Motorola in the earlier 1980s, in response to achieving 10X crimsonuction in product-failure levels in 5 calendar years.

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

  • 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, relicappotential, competitive prices, on-time delivery, service, clear and appropriate transworkion procesperform and more. This means it is iminterfaceant to provide exworkly wmind wear the customers need to gain customer delight.

The Processes:

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

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

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

The Employees

A company kind of must involve all it is employees in the Six Sigma program. Company kind of must provide opinterfacedeviceies and incentives for employees to focus their own particular talents and cappotential to satisfy customers.

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

Six Sigma – Organization

Under a Six Sigma program, the members of an organization are assigned specific roles to play, every with a title. This highly structucrimson format is requireddish coloured in order to implement Six Sigma throughout the organization.

There are sactionually specific responsibiliconnect ups or "role areas" in a Six Sigma program, which are as follows.


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 be met by the team. Here is the list of leadership Council Responsibiliconnect ups:

  • Degreats the purpose of the Six Sigma program
  • Exnormals how the result is going to benefit the customer
  • Sets a schedule for work and interim deadseriess
  • Develops a mean for relook at and oversight
  • Supinterface team members and defend established posit downions


Six Sigma sponsors are high-level individuals who belowstand Six Sigma and are committed to it is success. The individual in the sponsor role works as a issue solver for the ongoing Six Sigma project. Six Sigma is generally brought by a complete-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 workiviconnect ups in their own particular areas of responsibiliconnect ups.

Implementation Leader

The person responsible for superviperform the Six Sigma team effort, who supinterfaces the leadership council by ensuring tmind wear the work of the team is completed in the desicrimson manner, is the implementation Leader.

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


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.

Duconnect ups include worcalifornia california king as a go-between for sponsor and leadership, scheduling the work of the team, identifying and defining the desicrimson 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 worcalifornia california king as a go-between with the sponsor and the team members.

Responsibiliconnect ups include communication with the sponsor in defining project goals and rationale, piccalifornia california king and assisting team members and other resources, maintaining the project on schedule, and maintaining track of steps in the process as they are completed.

Team Member:

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

Team members execute specific Six Sigma assignments and work with other members of the team wislim a degreatd project schedule, to revery specifically identified goals.

Process Owner

The individual who gets on responsibility for a process after a Six Sigma team has completed it is work.

Extended Definitions of Roles Belt – Colors

The assignment of belt colours to various roles is derived from the obvious source, the martial arts. Based on encounter and expertise folloearng roles have evolved over the calendar year.

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

Black Belt

The person possesperform this particular particular belt has achieved the highest seliminate level and is an encounterd expert in various techniques. As applayd to the Six Sigma program, the individual designated as a Black Belt has completed a thorough internal training program and has the encounter worcalifornia california king on lots of projects.

The black belt 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 is leadership; but is not a direct member of the team it iself. This may be equivalent to the role played 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 tmind wear come up.

Green Belt

The Green Belt designation can furthermore belengthy to the team leader or to a member of the team worcalifornia california king directly with the team leader.

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

Getting Started Six Sigma wislim an Organization

The starting stage in gearning up for Six Sigma is to verify if you are ready to embrace a alter tmind wear says."There is a much much better way to operate your own organization."

Is Six Sigma Right for You?

There are lots of essential questions and fworks tmind wear you need to conaspectr in macalifornia california king a readiness assessment:

  • Is the strategic course clear for the company kind of?

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

  • Is generally there a strong all of all of theme or vision for the future of the organization tmind wear is well belowstood and consistently communicated?

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

  • Evaluating current general business results.

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

  • Evaluating how effectively are we operating.

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

  • How well are your own combination-functional processes managed?

  • Wmind wear other alter efforts or workiviconnect ups might conflict with or supinterface Six Sigma initiative?

  • Six Sigma demands investments. If you cannot generate a solid case for future or current return, then it may be much much better to stay away.

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

There can be many kind of questions to be answecrimson to have an extensive assessment before deciding if you want to go for Six Sigma or not. This may need time and a thorough consultation with Six Sigma Experts to get a much much better decision.

The Cost of Six Sigma Implementation

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

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

  • Indirect Payroll for the time devoted by executives, team members, process owners and others, involved in workiviconnect ups like data gathering and measurement.

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

  • Improvement Implementation Cost.

Six Sigma Start-up

Now you have selectd to go for Six Sigma. So exworkly wmind wear is next?

Deploying Six Sigma wislim an organization is a big step and involves many kind of workiviconnect ups including degreat, measure, analyze, improve, and manage phases. Here are a few steps, which are requicrimson for an organization at the time of starting Six Sigma implementation.

  • Plan your own own route: There may be many kind of routes to Six Sigma but the best is the one tmind wear works for your own organization.

  • Degreat your own goal: It is iminterfaceant to select exworkly wmind wear you like to achieve, and prioriconnect ups are iminterfaceant.

  • Stick to exworkly wmind wear is feasible: Set up your own plans so tmind wear they can fit your own influences, resources and scope.

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

  • Creating Six Sigma organization: This withincludes preparing Black Belts and other roles and assigning all of all of them their own particular responsibiliconnect ups.

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

  • Piloting Six Sigma effort: Piloting can be applayd to any kind of aspect of Six Sigma including solutions derived from process improvement or design crimsonesign projects.

Project Selection for Six Sigma

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

  • Top-down: This approach is generally connect upd to business strategy and is aligned with customer needs. The major weakness is they are too wide in scope to be completed in a timely manner (many kind of six sigma projects are expected to be completed in 3-6 months).

  • Bottom-up: In this particular particular approach, Black Belts select the projects tmind wear are well-suited for the capabiliconnect ups of teams. A major drawback of this particular particular approach is tmind wear, projects may not be connect upd directly to strategic concerns of the management generally thereby, 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 designing products & processes. This methodology is used to generate brand new product designs or process designs in such a way tmind wear it results in a more pcrimsonictable, mature and defect free performance.

There is one more methodology calbrought DFSS – Design For Six Sigma. DFSS is a data-driven quality strategy for designing or crimsonesigning a product or service from the ground up.

Sometimes a DMAIC project may turn into a DFSS project because the process in question requires complete crimsonesign to provide about the desicrimson 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 tmind wear needs to be adgowned.

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

  • Analyze: Analyze data and process to determine root causes of defects and opinterfacedeviceies.

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

  • Control: Implement, manage, and sustain the improvements solutions to maintain the process on the brand 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 tmind wear needs to be adgowned.

  • Measure: Measure and determine customers needs and specifications.

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

  • Design: Design a process tmind wear will meet customers needs.

  • Verify: Verify the design performance and cappotential 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 design products and processes tmind wear meet customer expectations and can be produced at Six Sigma Quality levels.

This methodology can have the folloearng five steps.

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

  • Degreat: Degreat exworkly wmind wear the customers want, or exworkly wmind wear they do not want.

  • Identify: Identify the customer and the project.

  • Design: Design a process tmind wear meets customers needs.

  • Optimize: Determine process capcappotential and optimize the design.

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

Six Sigma – Degreat Phase

There are five high-level steps in the application of Six Sigma to improve the quality of outplace. The preliminary step is Degreat. During the Degreat phase, four major tasks are belowgetn.

Project Team is Formation

Perform 2 workiviconnect ups:

  • Determine who needs to be on the team.
  • Wmind wear roles will every person perform?

Piccalifornia california king the correct team members can be a difficult decision, especially if a project involves a big number of departments. In such projects, it can be wise to break all of all of them down into smaller pieces and work tobattbrought comppermition of a series of phased projects.

Document Customers Core Business Processes

Every project has customers. A customer is the recipient of the product or service of the process, targeted for improvement. Every customer has one or multiple needs from his or her supplayr. For every need provided for, generally there are requirements for the need. The requirements are the charworkeristics of the need tmind wear determine whether the customer is content with the product or service provided. So, document customer needs and related requirements.

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

Develop a Project Charter

This is a document tmind wear names the project, summarizes the project by exnormaling the business case in a short statement, and lists the project scope and goals. A project charter has the folloearng components:

  • Project name
  • Business case
  • Project scope
  • Project goals
  • Milestones
  • Special requirements
  • Special assumptions
  • Roles and responsibiliconnect ups of the project team

Develop the SIPOC process chart:

A process is degreatd as a series of steps and workiviconnect ups tmind wear get inplaces, add value, and produce an outplace.

SIPOC is a process chart tmind wear identifies all the folloearng elements of a project:

  • Supplayrs
  • Inplace
  • Process
  • Outplace
  • Customers

The SIPOC process chart is essential for identifying:

  • The way processes occur currently.

  • How those processes need to be modified and improved throughout the remaining phases of DMAIC.


At the conclusion of the design phase, you need to know who the customer or end-user is, their own particular 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 general performance of the Core Business Process is measucrimson.

There are 3 iminterfaceant parts of Measure Phase.

Data Collection Plan and Data Collection

A data collection plan is prepacrimson to collect the requicrimson data. This plan includes exworkly wmind wear type of data needs to be collected, exworkly wmind wear are the sources of data, etc. The reason to collect data is to identify areas where current processes need to be improved.

You collect data from 3 primary sources: inplace, process, and outplace.

  • The inplace 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.

  • Outplace is a measurement of efficiency.

Data Evaluation:

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

  • A Six Sigma defect is degreatd as any kind ofslimg outaspect of customer specifications.

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

First we calculate Defects Per Million Opinterfacedeviceies (DPMO), and based on tmind wear a Sigma is selectd from a pcrimsonegreatd table:

                   Number of defects 
DPMO =   ------------------------------------------- x 1,000,000
           Number of Unit is x Number of opinterfacedeviceies

As stated above, Number of defects is the overallll number of defects found, Number of Unit is is the number of devices produced, and number of opinterfacedeviceies means the number of ways to generate defects.

For example, the food ordering delivery project team examines 50 deliveries and finds out the folloearng:

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

So now, DPMO will be as follows:

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

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

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

Failure Mode and Effects Analysis – FMEA

The final segment of the measure phase is calbrought FMEA. It refers to practionuallyting defects before they occur. The FMEA process usually includes rating probable defects, or failures, in 3 ways:

  • The likelihood tmind wear a fewslimg might go wrong.
  • The cappotential 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 being the lowest FMEA level and 10 being 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 wislim the general process. This would have the effect of practionuallyting defects. Clearlier, generally there is no need to invest a lot of time on this particular 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 all of them so tmind wear they can be crimsonuced. We conaspectr five specific types of analyses tmind wear help to promote the goals of the project. These are source, process, data, resource, and communication analysis. Now we will see all of all of them in detail.

Source Analysis

This is furthermore calbrought root cause analysis. It attempts to find defects tmind wear are derived from the sources of information or work generation. After finding the root cause of the issue, attempts are made to resolve the issue before we expect to eliminate defects from the product.

Three Steps to Root Cause Analysis

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

  • The narline step: During this particular particular phase, the project team narlines the list of probable explanations for current sigma performance.

  • The near step: During this particular particular phase, the project team validates the narlineed list of explanations tmind wear exnormal sigma performance.

Process Analysis

Analyze the numbers to find out how well or poorly the processes are worcalifornia california king, compacrimson to exworkly wmind wear's probable and exworkly wmind wear the competition is doing.

Process analysis withincludes creating a more detaibrought process chart, and analyzing the more detaibrought chart, where the greveryeck inefficiencies exist.

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

Data Analysis

Use of measures and data (those already collected or brand new data gathecrimson in the analyze phase) to discern patterns, tendencies or other fworkors about the issue tmind wear possibly suggest or prove/disprove probable cause of the issue.

The data it iself may have defect. There may be a case when products or deliverables do not provide all the needed information. Hence data is analyzed to find out defects and attempts are made to resolve the issue before we expect to eliminate defects from the product.

Resource Analysis

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

Other resources include raw materials needed to manufworkure, process, and deliver 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 supplays, it becomes a resource issue.

Communication analysis

One issue common to many kind of processes high in defects is poor communication. The classic interworkion between a customer and a retail store is worth studying because many kind of of the common communication issues are apparent in this particular particular case.

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

The exercise of loocalifornia california king at issues from both stages of look at is withinstructive. A vendor wants payment according to concurd-upon terms, but the Accounting Department wants to generate it is batch procesperform uniform and efficient. Between these types of groups, such disconnects demonstrates the iminterfaceance of communication analysis.


Analysis can get lots of forms. Some Six Sigma programs tend to use a lot of diagrams and worksheets, and others prefer talk aboution and list macalifornia california king. There are many kind of tools tmind wear can be used to perform analysis like Box Plot, Cause and Effect Diagram, Progressive Analysis, Rancalifornia california king, Pareto Analysis, Prioritization Matrix, Value Analysis, etc. The proper procedure is the one tmind wear works best for your own team, provided tmind wear the end result is successful.

Six Sigma – Improve Phase

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

The goal of Improve Phase is to identify improvement breakthroughs,identify high gain alternatives, select prefercrimson approach, design the future state, determine the brand new Sigma level, perform cost/benefit analysis, design dashpanels/ scorecards, and generate a preliminary implementation plan.

  • Identify Improvement Breakthroughs:

    • Apply idea-generating tools and techniques to identify feasible solutions tmind wear eliminate root 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 assessment for the highest value solutions.

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

Improvement can involve a easy 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 tmind wear the processes continues to work well, produce desicrimson outplace results, and maintain quality levels. You will be concerned with four specific aspects of manage, which are as follows.

Quality manage

The ultimate purpose in manage is the general assurance tmind wear a high standard of quality is met. Customer's expectations depend on this particular particular, so manage is withinherently associated with quality.

Since the purpose of Six Sigma is to improve the general process by crimsonucing 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 everyslimg to do with striving for perfection. Whether we revery perfection or not, the effort degreats our attitude tobattbrought quality it iself.


Standardization enables processes to go as smoothly as probable. In a manufworkuring environment, the value of standardization has been proven over and over.

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

Control Methods and Alternatives

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

When a process cannot be 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 knoearng how to respond once a defect is discovecrimson. The weak links in the procedure, where defects are many kind of likely to occur, can and need to be monitocrimson carecompletey so tmind wear defects can be spotted and fixed before the process continues.

The response to a defect may be to practionuallyt a discovecrimson flaw from becoming a defect at all. In the best designed systems, defects can be crimsonuced to near zero, so tmind wear we may workually belayve tmind wear Six Sigma can be attained.


The project team determines how to technically manage the brand newly improved process and generates a response plan to ensure the brand new process, and furthermore maintains the improved sigma performance.

Six Sigma – Technical Tools

This chapter gives an overlook at of the 10 many kind of iminterfaceant technical tools, which a Six Sigma team member needs to master as they progress through the DMAIC methodology.

While these tools are conaspectcrimson technical in nature, many kind of of all of all of them are relatively easy to find out and apply. They are covecrimson 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 design 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 preliminary level of requirements of the need, tmind wear is, a few charworkeristic of the need tmind wear determines whether the customer is content with the need.

  • Drill down to more detaibrought level(s) of the requirement if requireddish coloured.

Tool #2 – The Process Map:

During the Degreat phase, the project team generates the preliminary of lots of process charts. A process chart is a picture of the current steps in the process targeted for improvement.

A process chart has five major categories of work from the identification of the supplayrs of the process, the inplaces the supplayrs provide, the name of the process, the outplace of the process, and the customers of the process. Each of these steps is summarized as SIPOC to indicate the steps to the team tmind wear must be conducted to complete a process chart.

Tool #3 – The Histogram:

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

It is frequently suggested tmind wear the data be organised into graphs or charts, which generates it easier to belowstand, exworkly wmind wear the data is saying about the process.

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

Tool #4 – The Pareto Chart

Histogram is useful for continuous data, exwork same way when the data is discrete, many kind of teams generate a Pareto chart. Discrete data is counted data – go/no-go, off/on, yes/no, and defect/no defect type data.

An Italian economist Vilfcrimsono Pareto, in the sixteenth century proved maall of all of thematically tmind wear 80 percent of the world's wealth was managebrought by 20 percent of the population. This 80-20 rule actionuallytually proved applicable in arenas other than economics.

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

Tool #5 – The Process Summary Worksheet

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

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

Tool #6 – The Cause-Effect Diagram

The many kind of iminterfaceant tool to assist the project team in determining root causation is the cause-effect diagram. This tool captures all the ideas of the project team relative to exworkly wmind wear they feel are the root causes behind the current sigma performance and finally help in finding a root cause of the issue.

Tool #7 – The Scatter Diagram

Once ideas have been prioritized after use of the cause-effect diagram, the many kind of iminterfaceant slimg the project team does is to validate the remaining ideas with fwork and data.

The scatter diagram gets an idea about root causation and tracks corresponding data, in the response the team is believeing to improve. The team can validate an idea about root causation through one of the 3 methods. Uperform easy data collection, a designed experiment, or through the scatter diagram.

Tool #8 – The Affinity Diagram

An affinity diagram is used to help sort and categorize a big number of ideas into major all of all of themes or categories. It is especially useful 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 member write one idea per Post-it note and post on a wall randomly.

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

  • Create a 'minder' card for every general category of ideas below 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 been getn. 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 determine the upper and lower manage boundaries. Control boundaries are the expected boundaries of variation above and below the average of the data. These boundaries are maall of all of thematically calculated and indicated by dotted seriess.


We saw 10 major technical tools tmind wear project team members 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 covecrimson here are those tmind wear are many kind of common for every team member to be abattlee of and knowbroughtgeable about.

Six Sigma – Defect Metrics

Before we go amind, permit us degreat 2 terms:

  • A Six Sigma defect is degreatd as any kind ofslimg outaspect of customer specifications.

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

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

Defects Per Unit – DPU

         Total Number of Defects
DPU =    ------------------------
         Total number of Product Unit is

The probcappotential of getting 'r' defects in a sample having a given DPU rate can be pcrimsonicted with the Poisson Distribution.

Total Opinterfacedeviceies – TO

TO = Total number of Product Unit is x Opinterfacedeviceies

Defects Per Opinterfacedevicey – DPO

         Total Number of Defects
DPO =    ------------------------
         Total Opinterfacedevicey

Defects Per Million Opinterfacedeviceies – DPMO

DPMO =   DPO x 1,000,000

Defects Per Million Opinterfacedeviceies or DPMO can be 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 own Sigma Level

  • Clearlier degreat the customer's explicit requirements.
  • Count the number of defects tmind wear occur.
  • Determine the yield-percentage of items without defects.
  • Use the conversion chart to determine DPMO and Sigma Level.

Simplified Sigma Conversion Table

If your own 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 withintroductory tutorial provides simply a glimpse of Six Sigma and it is 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’ benefit, we have listed down a few resources in our Resources section.

Given below 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 charts are usually charworkerized by lots of inplace options, bottlenecks and multiple handoffs, inspections and rework loops.

"Should be" Process Map

A depiction of a brand 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 organizing big quanticonnect ups of information from many kind of people. It is frequently used with brainstorming and other innovative slimcalifornia california king workiviconnect ups. The ideas are usually generated on sticky notes, then categorized into groupings of similar ideas.

Analyze Phase (DMAIC)

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

Area SIXSIGMA Council

Leadership group (Area VP, AMD, AD, MBBs, and frequently GMs) guiding the implementation of quality and SIXSIGMA wislim the organization; establishes, relook ats, and supinterfaces the progress of SIXSIGMA DMAIC and iDMAIC projects.

Assumption Busting

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

Attribute Data

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

Balanced Scorecard

It categorizes ongoing measures into a few significan’t 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 useful for process owners.

Baseseries Measures

Data tmind wear reflects the performance level tmind wear exists at the startning of an improvement project, before any kind of solutions are initiated. It is the "Before" snapshot to be compacrimson later with the "After" look at.

Best Prworkice

A completed project (usually, but not always a Six Sigma project) tmind wear is particularly important for use in other properconnect ups based on meeting the folloearng 3 conditions: success, transfercappotential, and Speed of benefit realization

Black Belt

An associate completey assigned to Six Sigma and trained in the DMAIC methodology, analytical tools, and team leadership seliminates. Black Belts are responsible for guiding DMAIC projects to comppermition. They lead DMAIC projects, assist with Quick Hit is and provide coaching and expert supinterface for iDMAIC transfer projects. Their role in Best Prworkice and Innovation transfer projects is to assist and coach the Iminterface team on the DMAIC tools and methodology.


It is a narroearng/selection process tmind wear seeks to identify solution ideas, which are similar (AND) as well as workable together actionually when not similar ideas (BOTH). This technique helps the team seek interconnections and combinations of ideas to generate much much better and more workable solutions.

Box Plot

It is a graphic display of groupings of data tmind wear compares the groupings to the others on one chart. An example of the tool would be loocalifornia california king at the variation in check-in time by various front side desk associates.

Critical to Quality (CTQs)

Refers to exworkly wmind wear customers conaspectr iminterfaceant in any kind of given process. Collecting Voice of the customer data leads to the discovery of CTQs, which are translated into specific requirements tmind wear can be measucrimson.

Cause and Effect Diagram (Fishbone/Ishikawa)

Brainstorming tool used for propoperform root-causes (the "bones of the fish") for a specific effect (the mind of the fish). This can be used in combination with the Affinity Diagram to determine the major categories. Also commonly used in combination with the "5 Whys" technique in order to help people belowstand the root cause.


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 assumptions, roles, preliminary plan, and scope.


Forms, tables, or worksheets tmind wear 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 refercrimson to as "chronic pain".

Complexity Matrix

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

Continuous Data

Any quantity measucrimson on a continuous level tmind wear can be 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 outseriess the steps for ongoing improvements including opinterfacedeviceies for uperform the solutions elsewhere.

Control Chart

It is a specialised graph tmind wear shows process performance over time, shows average upper and lower manage boundaries and helps determine the influences of common (usual) causes or special (unusual) causes.


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

Cost of Poor Quality (COPQ)

It is a financial measure depicting the impwork of issues due to internal and external failures in the process which includes labor and material costs for handoffs, rework, waste or scrap, inspection, and other non-value-adding workiviconnect ups.

Process capcappotential (Cpk or Cp)

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

Criteria Matrix

It is a decision-macalifornia california king tool used when feasible choices must be weighed against key fworkors such as cost, relayve to implement, impwork on customer, etc. It encourages use of fworks, data, and clear business goals in the decision-macalifornia california king.


It is an internal or external person/organization who receives the outplace product 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 gets to complete a process from start to comppermite. It includes workual work time and wait arounding time.

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

It describes the application of SIXSIGMA tools for designing brand new products and processes.


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

DMAIC 1 Training

It is DMAIC training for Master Black Belts, Black Belts and Green Belts. This course starts the SIXSIGMA issue-solving methodology (DMAIC), focuperform on preliminary 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, comppermiteing 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 tmind wear follow the DMAIC methodology brought 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 much "much much better" or "worse" a process is by indicating the amount of defects in a process per one million opinterfacedeviceies.

Dashpanel (or Process Scorecards)

It is a graphical tool tmind wear 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 structucrimson approach to identifying the requicrimson data to be collected and the approach to collecting it. It includes: the measure, the measure type, data type, operational definition, and the sampling plan if brand new data is requireddish coloured.

Decision Tree

Used during the SIXSIGMA Council process to determine project selection weighting. It focuses properconnect ups on the area (possibly Ractionuallyue, cost Reduction or ASI, GSI) tmind wear needs the greveryeck attention to achieve general house goals.


It is any kind of instance or occurrence where the product or service fails to meet customer requirements.

Defect Opinterfacedevicey

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


It is any kind of device with one or more defects.

Degreat Phase (DMAIC)

It is the preliminary phase of DMAIC, where the project's purpose and scope are degreatd. Background information on the process and customer is collected. The outplace of this particular particular phase includes a clear statement of the improvement (i.e. business case and Project Definition Form), a high-level chart of the process (SIPOC), and a list of exworkly wmind wear is iminterfaceant to the customer.

Deployment Process Map

A chart or graphical look at 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 numbers which help team members assess "how bad" a issue is and to pinstage where to focus further analysis and solutions.

Design for SIXSIGMA (DFSS)

Describes the application of SIXSIGMA tools to product generatement and Process Design efforts with the goal of "designing in" SIXSIGMA performance capcappotential.

Discounted Cash Flows (DCF)

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

Discrete Data (Attribute Data)

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

Division SIXSIGMA Council

Leadership group (Preaspectnts and direct reinterfaces, Division SIXSIGMA leader, AMDs, and frequently MBBs and GMs) guiding the implementation of quality and SIXSIGMA wislim the division; establishes, relook ats, and supinterfaces the progress of SIXSIGMA DMAIC and iDMAIC projects. The Division Council is responsible for driving the SIXSIGMA initiative wislim tmind wear division and is accountable for project, process and business results.


Documentation is a historical account of the workiviconnect ups and decisions made throughout a DMAIC project, Quick Hit, and iDMAIC project, which is used to facilitate sharing of best prworkices acombination an organization and as part of the project near-out 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 benefit is, as well as tollgate documentation information from every phase of DMAIC and iDMAIC projects.


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


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

External Failure

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

Failure Modes and Effects Analysis (FMEA)

A useful technique for practionuallyting future issues and crimsonucing risks to a solution.

Used to identify and assess errors & defects which could result in a threat to quality, securety or relicappotential; it is useful in implementing improvements, crimsonesign or design of processes. It is furthermore a tool for process owners to construct practionuallytion and contingency steps into the project plan.

Fishbone Diagram

See Cause and Effect Diagram.

Five Whys

Five Whys are frequently used to generate a cause and effect. It is the technique of ascalifornia california king "Why" five times in order to dig into every feasible cause. "Why" is asked until the root cause is reveabrought.

Force Field Analysis

It involves a list of the fworkors tmind wear supinterface and fworkors tmind wear "hurt" an idea; "restraining" fworkors 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 shape or distribution of the data by footweararng how frequently various 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 workions employed during the Improve phase of a DMAIC project.

Gantt Chart

It is a project planning and management tool tmind wear displays all the tasks or workiviconnect ups associated with a project or initiative as well as the relationships/dependencies between these tasks.

Global SIXSIGMA Council

Leadership group (Starwood's Senior Operating Committee and Division Preaspectnts) guiding the implementation of quality and SIXSIGMA wislim the organization, which establishes, relook ats, and supinterfaces the progress of SIXSIGMA DMAIC and iDMAIC projects. The Global SIXSIGMA Council is responsible for designing and driving SIXSIGMA throughout Starwood.

Goal Statement

Description of the intended target or desicrimson results of Process Improvement or Design/Redesign workiviconnect ups; usually outseriesd during the proposal phase of the PDF, revised in the Degreat phase of a DMAIC project and supinterfaceed with workual numbers and details once data is obtained.

Green Belt

Associates trained to the exwork same level as Black Belts, but not on complete-time assignment to SIXSIGMA. They may do DMAIC projects, lead smaller SIXSIGMA projects on a part-time basis, serve on bigr projects as team members, and/or belowget implementation of Quick Hit is or Innovation Transfer projects.


Any time in a process when one person (or job title) or group passes the item moving through the process to one more person; a handoff has the feasible to add defects, time, and cost to a process.

Hawthorne Effect

It is an incrrelayve in worker productivity tmind wear results from the psychological stimulus of being temporarily performbrought out and made to feel iminterfaceant.

Histogram or Frequency Plot

See Frequency Plot.

Hypothesis Statement

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


iDMAIC stands for "Innovation DMAIC". iDMAIC is a methodology designed to ensure consistent and rapid transfer of innovation throughout Starwood. Innovations can be DMAIC projects, Quick Hit is, or other Starwood Innovations.

Internal Rate of Return(IRR)

It is a way to compare feasible projects by calculating the financial value of a project against the investment requicrimson

Impwork/Effort Matrix

A graphical representation of various projects plotted alengthy 2 axes (Y = Impwork, X = Effort). It is a project selection tool tmind wear 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 Sgetholder Analysis, FMEA, Poka-yoke, SOPs and pilot results (if conducted) in a consolidated format.

Improve Phase (DMAIC)

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

Innovation Transfer

The successful transfer of a brand new idea, method or solution from one house to one more may be a Quick Hit, Best Prworkice, or any kind of other innovation.


It is any kind of product, service, or piece of information tmind wear comes into the process from a supplayr.

Inplace Measures

Measures related to and describing the inplace into a process; can be pcrimsonictors of process and outplace measures.

Ishikawa Diagram

See Cause and Effect.

Kano Analysis

A graph of how customer satisfworkion is effected by a particular issue, alter, or other variable. The graph is divided into 3 areas of customer reworkions 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 designed to give participants the requireddish coloured seliminates to be 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 find outing exercise tmind wear helps individuals identify their own particular own and others' look ats on the team decision macalifornia california king process and the team's general performance.

Learning Map

It is an experiential, accelerated, and high-involvement find outing workivity to introduce SIXSIGMA concepts and the initiative at every Starwood house. It consists of a table-dimensiond visual "SIXSIGMA: Innovation and Improvement" chart and a set of cards tmind wear direct the participants through a discovery find outing workivity.

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 tmind wear the DMAIC process is being implemented, and tmind wear all projects are on-track tobattbroughts comppermition.

Measure (General Definition)

It is a numerical evaluation of based on observable data. A few examples of measures can be number of brand new reservations per day, the number of check-ins per week, the number of employees schedubrought per shift.

Measure Phase (DMAIC phase)

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

Moment of Truth

It is any kind of actionuallyt or stage in a process when the internal/external customer comes in con2rk with a process. At every of these stages the customer has an opinterfacedevicey to form an opinion (posit downive, neutral, or negative) about the process or organization.

Multiple Regression

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


It is a narroearng or prioritization tool. Faced with a list of ideas, issues, causes, etc., every member of a group is given a set number of "votes". Those items or issues receiving the many kind 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 tmind wear money received in the future is worth less than money received today.

Non-value-adding Activiconnect ups

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

Operational Definition

A clear, precise definition of the fworkor being measucrimson or the term being used; ensures a clear belowstanding of terminology and the cappotential to collect data or operate a process consistently.

Optional Best Prworkices

A completed project usually, but not always a Six Sigma DMAIC or Quick Hit project, tmind wear is particularly important for use in other properconnect ups.

Original Team (Original DMAIC/Quick Hit Project Team)

It is the team tmind wear originated and completed the very first process improvement project (DMAIC or Quick Hit) in their own particular house. The role of the Original Team is to ensure proper project documentation to relayve transfer and to provide advice, clarification and assistance to teams iminterfaceing their own particular project.


Any product, service, or piece of information coming out of, or resulting from, the workiviconnect ups in a process.

Outplace Measures

These are the measures related to and describing the outplace of the process; overallll figures/general 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 tmind wear have the greveryeck impwork if solved.


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

Plan-Do-Check-Act (or PDCA)

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


Poka-Yoke is a Japanese term for "misget proofing”. Misget proofing typically looks at every step in the process in detail, and uses innovative slimcalifornia california king to generate ways to maintain errors from occurring.


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

Preliminary Plan

It is used in the earlier phase of a project, while generateing milestones for team workiviconnect ups related to process improvement; includes key tasks, target comppermition dates, responsibiliconnect ups, feasible issues, obstacles and contingencies, and communication strategies.


It is a series of steps or workions tmind wear lead to a desicrimson result or outplace. A set of common tasks tmind wear generates a product, service, process or plan tmind wear will satisfy a customer or group of customers.

Process Owner

Process owners are the responsible individuals for a specific process.

Process Capcappotential

Statistical measures tmind wear summarize how much variation generally there is within a process relative to customer specifications.

Process Improvement

Improvement approach focused on incremental alters, involves solutions to eliminate or crimsonuce defects, costs, or cycle time; departs easy design and assumptions of a process in2rk.

Process in Control

A statistical concept indicating tmind wear a process is operating wislim an expected range of variation and tmind wear variation is being influenced mainly by "common cause" fworkors; processes operating in this particular particular state are refercrimson to as "in manage".

Process Management

It involves defining and documenting a process, monitoring it on an ongoing basis to ensure tmind wear measures are providing give food toback 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 actionuallyts tmind wear a product or service follows; it shows all workiviconnect ups, decision stages, rework loops, and handoffs.

Process Measures

It is a measure related to individual steps in the process and/or the general process; can be pcrimsonictors of outplace measures.

Process Redesign

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

Project Definition Form (PDF)

It is the summary of pertinent information tmind wear describes a SIXSIGMA project. This withincludes issue statement, goal statement, scope, business case, financial benefit is and costs, project timing, resource requirements, measures, etc

Project Management

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

Project Nomination (iDMAIC)

A Black Belt, MBB, Sponsor, or General Manager associated 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 relook at meetings, every Division Council relook ats all projects tmind wear have been nominated as best prworkices.

Project Sponsor

This is a member of the executive committee, strong advocate of the project and can assist with barriers tmind wear may come up.

Project Rationale

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

Property SIXSIGMA Council

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

Prointerfaceion Defective

Percentage (or frworkion such as 1/8) of defective devices; number of defective devices divided by the overallll number of devices.


It is the very preliminary phase in the lifecycle of a SIXSIGMA project (DMAIC or Quick Hit). in which the feasible project idea or opinterfacedevicey is proposed to the house SIXSIGMA Council.

Quick Hit Project

It is a small project tmind wear can be fastly implemented and tmind wear does not require a Black Belt to resolve and implement.

RACI Matrix

A project management tools tmind wear identifies all requicrimson tasks or workiviconnect ups, the parconnect ups are involved in those tasks as well as their own particular level or type of involvement.

A RACI is used to ensure clarity on roles and responsibiliconnect ups 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 being equal, projects with a bigr ROI are more attrworkive investment opinterfacedeviceies.

Random Sampling

It is a method tmind wear permit’s every item or person chosen to be measucrimson, to be selected completely by chance.


It is the statistical study of relationships. An analytical tool tmind wear permit’s an assessment of a key outcome and extent to which one or more fworkors being stuexpired can exnormal the variation in results see furthermore Simple Linear Regression; Multiple Regression.


Repeatcappotential means tmind wear the exwork same person tacalifornia california king a measurement on the exwork same device gets the exwork same result. Reproducibility means tmind wear the other people, other instruments or other labs get the exwork same result you get when measuring the exwork same item or charworkeristic.

Requicrimson Best Prworkices

A project designated by the division or global leadership team tmind wear delivers superior performance when implemented acombination a class of properconnect ups. "Requicrimson" means tmind wear all properconnect ups in a "class" must implement the best prworkice by a specified stage in time.

Response Plans

The plans tmind wear are generateed during the "Control" phase for DMAIC and iDMAIC projects to ensure tmind wear the gains achieved can be maintained.


This is a method which can be used 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 appropriateion by returning it to a previous step in the process.

Risk Management

Risk management is slimcalifornia california king amind, identifying feasible issues, and preparing for slimgs tmind wear may go wrong.

Rolbrought Throughplace Yield

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

Run Chart (or time plot, trend chart)

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


A SIPOC is a high-level process chart tmind wear includes Supplayrs, Inplaces, Process, Outplaces, and Customers, and degreats the start and end stages of a process.


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

SIXSIGMA Council Training

A course designed to enable house Executive Committees and senior leaders to generate value-driven decisions by identifying, prioritizing, and sizing projects for their own particular Black Belts.


It is a leadership group tmind wear guides the implementation of quality or SIXSIGMA wislim an organization; establishes, relook ats, 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 determine varicappotential/capcappotential.


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 unrepresentative "slice" of data tmind wear leads to inprecise conclusions.

Scatter Plot or Diagram

It is the graph used to show the relationship or correlation between 2 fworkors or variables.


It degreats the boundaries of the process; clarifies specifically where the start and end stages for improvement reaspect, degreats where and exworkly wmind wear to measure and analyze and needs to be wislim the sphere of manage of the team, worcalifornia california king on the project.

Simple Linear Regression

The statistical study of the relationship between a performle variable X to a performle outplace Y.

Solution Statement

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

Special Cause Variation

It is an actionuallyt tmind wear impworks processes only below "special" circumstances i.e., not part of the usual, daily operation of the process.

Sgetholder Analysis

Identifies all sgetholders impworked by a project and their own particular anticipated and requicrimson levels of supinterface for the project. Typical sgetholders include managers, people who work in the process below study, other departments, customers, supplayrs and finance.

Standard Deviation

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

Standard Operating Procedure (SOP)

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


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


Stratification means dividing data into groups based on key charworkeristics. The purpose of dividing data into groups is to detect a pattern tmind wear localizes a issue and exnormals why the frequency of impwork varies between times, locations or conditions.


It is a sub-component of a bigr process.


It is a person or an organization tmind wear give food tos inplaces (products, 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 because 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 big DMAIC projects with more than one BB or MBB, the Team leader is the main stage of con2rk for the project.

Team Member

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


It is a relook at session tmind wear determines whether workiviconnect ups up to tmind wear stage in a project have been satisfworkorily completed. Tollgates are commonly conducted to relook at critical decisions during a project.

Transfer Team

Team formed at a house, with responsibility for iminterfaceing a Best Prworkice (Optional or requicrimson), brought by a Team leader apstageed by the house Six Sigma Council, and coached by the Black Belt at the house when needed. Transfer teams will use the iDMAIC methodology to iminterface innovation into their own particular properconnect ups.

Transfer Team Leader (Process Owner/Department Head)

A person selected by the GM and house SIXSIGMA Council to lead an iDMAIC project based primarily on proximity and decision-macalifornia california king authority relative to the process involved. This person has primary responsibility for implementing the project, leading the team, and interworcalifornia california king with others to gather information and belowstanding requireddish coloured to succeed. Often, the transfer team leader will be the department mind or process owner of the process being improved with the best prworkice. The cappotential to lead the team and to anticipate clear barriers are iminterfaceant charworkeristics for a person in this particular particular role.

Transfer Team Member

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

Transfer Project

It is a project tmind wear a house iminterfaces from one more house.

Tree Diagram

It is a branching diagram used to break any kind of wide goal into increaperformly detaibrought levels of workions.

Trend Chart

See Run chart.

Value Adding Activiconnect ups

These are the workiviconnect ups introduced to improve the current process nearr to the ideal process.

Value-enabling Activiconnect ups

Steps/tasks in a process alloearng work to move forbattbrought; can furthermore be look ated as requireddish coloured steps tmind wear are not all of all of themselves adding value but tmind wear contribute to the delivery of the product or service. Examples include selecting brand new employees, purchaperform supplays, and balancing the books.


These are the alters or fluctuations tmind wear determine how stable or pcrimsonictable a process may be or affected 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 satisfworkion and dissatisfworkion through comnormalts, surveys, comments, market reoceanrch, focus groups and interlook ats.


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

Web-based Event (Requicrimson and Optional Best Prworkices)

It is a web-based kick-off communication from the Exinterface team, to the transfer Team featuring a well-documented presentation of their own particular Best Prworkice project. The actionuallyt can be synchronous (participation to a live actionuallyt) or asynchronous (relook at of a recorded actionuallyt).


Total number of devices handbrought appropriately through the process steps, typically expressed as a percentage. Yield simply indicates how many kind of items were delivecrimson at the end of the process with no defect.

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