Lean & Six Sigma Session 15

Six Sigma Methodology & Tools Measure

Tool kit
Process maps, flow charts SIPOC can be a simple, practical way of representing the flow

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Tool Kit-Process mapping

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Tool kit

Flow chart Depicts the decision making, in addition to representing stages

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Tool kit
Written procedures Similar to the Standard work in Kaizen events Helps in reducing variation

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Process Inputs & Outputs

Can use the Ishikawa / Fishbone diagram It is a representation of the cause & effects Helps get a perspective of different issues / functions

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Process Inputs & Outputs

Ishikawa Diagram : Why is the cost of operation high?

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Process Inputs & Outputs

Why was GPA not released in time? Understand through the Pareto principle: 20% causes are responsible for 80% of the problems

70 60 50 40 30 20 10 0 Answer scripts not evaluated Administrative work Policy issues Pending student dues

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What do we measure?
Parameters critical to the process from the customer perspective Critical To Quality (CTQ) Examples? Restaurant
o Time taken to serve o Taste of food o Cleanliness of crockery, table linen, etc.
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What do we measure?
CTQ Automobile
Mileage # of breakdowns per year Re-sale value .

Other Parameters
Cost, Customer Satisfaction

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How do we measure?
Drawing valid statistical conclusions Properties of a set of data points
Mean, median, mode, dispersion

Population
Collection of all items or data under consideration Population parameters: mean, standard deviation, etc

What is a sample? Why do we use a sample?

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How do we measure?
Some parameters & their representation
Sample Population

Size (Number of elements) Mean Standard Deviation

n x s

Central Limit theorem

Sampling distribution of the mean is approximately normally distributed if sample size is sufficiently large

Confidence interval
we are 95% confident that the population mean is between 1.256 & 1.270
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Basic Probability concepts

Probability takes a value between 0 & 1 Assume a lot containing 100 parts with 4 defectives. A part is taken out at random P(a defective part) = 4/100 = 0.04 or 4% Drawing out cards A card is drawn from a deck. What is the probability that it is a spade?

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Basic Probability concepts

Special Addition Rule P (A or B)= P(A) + P(B) provided A & B cannot occur simultaneously A card is drawn at random. What is the probability that it is a heart or diamond?
P(Heart) + P(Diamond) 13/52 + 13/52 = 1/2

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Basic Probability concepts

General Addition Rule When events A and B can occur simultaneously P (A or B) = P(A) + P(B) P(A&B) Example What is the probability that a card drawn is either a queen or a spade
P(Queen) + P(Spade) P (Queen & Spade) 4/52 + 13/52 1/52 = 16/52
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Contingency Tables
Small Medium Large TOTAL Red 16 12 18 46 Yellow Green 21 14 11 19 12 21 44 54 Blue 19 15 14 48 TOTAL 70 57 65 192

Find the probability that a random ball drawn out is yellow [ 44/192 ] Find the probability that a random ball picked out is yellow & medium [11 / 192] Find the probability that a ball randomly chosen is either green or large [ 54/192 + 65/192 21/192 = 98/192 ]
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Collecting & Summarizing Data

Types of data Quantitative
Continuous (between any two values, there are infinite number of other values. E.g. between 1.2 and 1.3, we have 1.21, 1.22, 1.221, 1.32, etc) Discrete (count of an event: example number of defects per batch of steel rods )

In measurement, a good practice is to move from discrete to continuous data

Control charts which use continuous data are more sensitive to process change Even when discrete measurement hasnt changed, changes may be observed in continuous data
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Collecting & Summarizing Data

Measurement Scales
Nominal ( Yes / No) Ordinal (Grades, difference between Grade A & B may not be the same as that between Grade B & C Interval (temperature measured in Fahrenheit : 80 F is not twice as hot as 40 F ) Ratio scales : meaningful differences, an absolute zero exists
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Collecting & Summarizing Data

Techniques for assuring data accuracy
Units of measure need to be defined (inches, kilograms, etc) Rounding off: consistency in decimals Ambiguous terminology: (not mentioning a.m. / p.m. ) Clear and legible handwritten entries ( 2 and z cannot look similar)

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Collecting & Summarizing Data

Sampling Procedure Simple random sampling Stratified random sampling (500 respondents from Mumbai, 1000 from Delhi & 400 from Bangalore is defined as the population
Sample of 100, 200 & 80 from M, D & B respectively is a stratified sample (proportional)
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