L6σ

Yellow Belt
Learning Objectives
Ask…
How can I be more Customer
Obsessed?
How can I be a better problem
solver?
How do I make sure my data is
relevant for the problem?
How can you check if your solution
will really solve the problem?
Objective
Describe the benefits of Continuous
Improvement Methodologies for
removing your Customers’ barriers.
Identify sources of waste and
variation using structured Continuous
Improvement methodology (like Lean
Six Sigma)
Apply Lean Six Sigma tools to help
you ask the right questions
Distinguish between a possible cause
and a root cause
Scope
 Yellow Belt Training
 I can recognize waste and variability
 I am familiar with the L6S method and tools
 I can contribute to remove waste and variability
 Separate training courses will cover advanced L6S topics, Project
Management, Kaizen Events, and in-depth data analysis.
 Topics:
 Introduction to Continuous Improvement
 Wastes Identification
 Structured Problem Solving Methodologies
 Some Lean and Six Sigma tools
Perspective…
 We deliver many Products & Services  these are produced by
processes
 Every Product and Service has customers and every customer has
Expectations and Requirements
 The degree to which we meet customer expectations and
requirements determines the level of our quality
 All processes have variation, and must be actively managed to reduce
variation in order to maintain and improve quality
What is Continuous Improvement (CI)?

Continuous Improvement (CI) is the ongoing effort to drive positive change within
products and processes.
 This effort can be small or large in scale and can be performed multiple times
for the same process
 CI can lead to more efficiency, a better end result, and fewer defects
 CI strategies originated in manufacturing, but can be applied to any process

Why Continuously Improve?

Mental Models

A bad system/process will beat a good person every time.

W. Edwards Deming

We are too busy mopping the floor to turn off the faucet.
Author Unknown

Watch the little things; a small leak will sink a great ship.
Benjamin Franklin
Abraham Maslow, the Psychology of Science (1966)
Lean Six Sigma
Lean and Six Sigma Comparison
Lean and Six Sigma
First Use Lean

 Remove Waste
 Reduce ‘Non-Value
Added’ steps
 Improve Efficiency and
throughput

Then Use Six Sigma

Six Sigma = 3.4 defects per million
4 sigma 6 sigma and is achieved by reducing variation
99.3% good 99.9996% good  Improve consistency
 Reduce variation
1 HMD ‘No’* for every 1 HMD ‘No’* for every
160 resolved cases 250,000 resolved cases  Improved quality and productivity
(same seller question) (same seller question)  More stable processes
*Negative HMD response as a defect of PRR metric

Improved customer satisfaction!

Six Sigma Example: Handle Time for a Single Case Type
• Why so spread out? What did each associate do differently?
• Very short and very long handle times can be defined as “defects”
Number of Cases

• What is the single best process for resolving this case type consistently?

Too fast, issue not resolved Too slow, poor service provided

Handle Time (in minutes)

After 6 Sigma • Six Sigma reduces variation in a process so that

Number of Cases

it can be performed the same way, with the

Larger same results, each time
percentage of • Provide a more consistent Seller experience with
cases within less “defects”
“acceptable” • Six Sigma can be applied to any process to
time frame improve the results

Handle Time (in minutes)

Lean and Six Sigma Comparison
Wastes
Waste Types (TIMWOODS)
Waste Definition Examples
Transportation Movement between process that does not add Transfers, Tickets
value
Inventory Having more than what the customer needs right Outputs (reports, analysis, etc…) that doesn’t
now have a customer. Unnecessary emails, blurbs
about a deprecated program.
Motion Movement of people in a process that does not Searching for tools, information, etc.
add value Sorting through materials
Waiting Idle time created when material, information, Waiting for someone to action a ticket
people or equipment is not ready
Over-production Generating more than the customer asked for Providing more information or details than
required.
Over-processing Efforts that create no value from the customer’s Manually validating an accurate Paragon
viewpoint. Processing beyond what is required by workflow resolution. Adding unnecessary
customer empathy and personalization to blurbs.
Defects Work that contains errors, rework, mistakes or SOP with outdated ticket quicklink. Paragon
lacks something necessary Workflow missing a common use case.
Skills Under utilizing capabilities or delegating tasks Associate trained in Feeds, IIDP, and FBA
with inadequate training skilled to only take Marketplace calls.
Waste Reduction

Use Lean to remove waste before improving the remaining parts of the
process with Six Sigma.
 Be a WASTE hunter, little and often, don’t try to find everything at
once.
 Waste reduction can be done every day, at work and at home
 Once you remove a waste, look for impacts to ensure you haven’t just
moved your waste elsewhere
 The best person to see the WASTE is the person doing the job.
 Some waste is required or acceptable to execute a process. Non-waste
is whatever the customer is willing to pay and things that add value.
Everything beyond that is waste.
Activity Break
Standard Pig
Round 1

 1. Draw the side profile of a pig, centered on the page.

 2. Make sure the pig's head is facing left.
 3. The pig should be drawn large enough so that a piece of it is in every box
EXCEPT the top right.
 4. You have 1 minute to draw your pig.
Standard Pig SOP (Round 2)
 1. Draw a letter M at the top left intersection
 2. Draw letter W at bottom left intersection
 3. Draw letter W at bottom right intersection
 4. Draw arc from letter M to top right intersection
 5. Draw another arc from top right intersection to bottom right W
 6. Draw an arc between the two bottom Ws
 7. Draw the letter O in center left box
 8. Draw arc from letter M to tangent of the circle
 9. Draw arc from left w to tangent of the circle
 10. Draw an arc for the mouth
 11. Draw an arc for the eyes
 12. Draw cursive letter e near top of arc on the right
 13. Draw two dots in the middle of circle for pigs' nose
Standard Pig
Exercise Takeaways

 A standard way of doing a process achieves consistent results

 Ex. Paragon Workflows
 Standard processes make it easier to identify waste and variability
 Easier to see the problems
 Consistent results are critical to our customers’ experience
 Ex. Reimbursements, returns
 More detailed instructions aren’t always better
 Consider the audience when designing a process

A bad system/process will beat a good person every time.

W. Edwards Deming
Structured Continuous Improvement
Methodologies
PDCA and DMAIC
PDCA (Plan-Do-Check-Adjust)

4. Adjust
1. PLAN
•document and learn from
• define the problem
results
• collect relevant data
•make recommendations for
• ascertain the problem's
next PDCA cycle Adjust Plan root cause

3. CHECK 2. DO
• confirm the results Check Do • develop and apply a
through before-and-after solution
data comparison • choose a measurement to
gauge effectiveness
 PDCA
PDCA
Plan Identify the problems
Do Test potential solutions Deming’s Cycle
Check Study results
Act/Adjust Implement best solution

New
standard

Improvement
New
standard

Time
 DMAIC Method

Define
Problem well defined and
D
understood
Control Measure
M Understand the “As-Is” state
A Root causes are understood
Potential solution determined and
I
pilot is run
Improve Analyze
Solution in place and control plan
C
developed
 DMAIC Overview
Define Measure Analyze Improve Control

Synopsis Define the problem and

the objective
Identify what needs to be
improved. Can it be
measured (quantified)?
Analyze the process.
Determine the factors of
Identify and implement
improvements
Ensure the improvements
are sustained
influence

• •
Overview Identify and clarify the
problem opportunity
• Define the customer
requirements
• Define scope
• •
•
Validate the problem
Understand the current
Identify bottlenecks
and causes of variation
state process • Analyze root cause
• Data collection • Prioritize root causes
• Set a target and define • Identify quick wins
containment actions • Define possible
• Identify project success corrective and
measures preventive actions
• Define potential
solution options
•
Pilot test various
solutions,
Evaluate results from
implementation
countermeasures • Amend new process
and/or preventive • Identify and mitigate
actions potential risks
• Identify impact of • Document and
potential solutions on standardize new
upstream and process
downstream processes • Quantify results
• Evaluate the results, • Monitor the new
amend and select final process
solution
• Implement solution
• Create new improved
process

• • • • •
Example Project Charter
(problem statement,
Current state as-is
process map •
Value Stream Mapping
Ishikawa or fishbone •
Brainstorming
Design of Experiments •
Process Capability
ROI validation
tools and goal statement) • Data collection plan diagram • Assessment and • Mistake Proofing
• • • •
techniques •
Project Team
Project Plan •
VOP
Process Stability •
5-Why
Cause and effect matrix •
evaluation criteria
Test plan •
Standardization
Documentation
• Stakeholder Analysis • Hypothesis testing • Pilot testing • RACI
• VOC, VOB • Brainstorming • FMEA • Transition Plan
• SIPOC • FMEA • Error proofing • Control Plan
• COPQ • Pareto chart • Impact and Effort • Preventive
• Prioritization Matrix Matrix Maintenance Plan
• Performance Matrix • Prioritization Matrix • Key reports
• Cost-Benefit Analysis
(Financial Analysis)
• Communication Plan
Lean (PDCA) and Six Sigma (DMAIC)

Define

Measure

Analyze

Improve

Control
DMAIC Improvement Tools
Phase: Define
 Define
Measure
Analyze
DMAIC “Define” Tools Improve
Control

Define: Define the problem and objective

 Problem Statement
 Project Charter
 Suppliers – Inputs – Process – Outputs – Customers
(SIPOC)
 Define
Measure
Analyze
Problem Statement Improve
Control
What is the business issue?
State the problem that is
1. What occurring
A problem statement is a clear, is wrong?
concise and compelling statement How long has it been an issue?
that describes the symptoms of the Define the period of time for which
this problem has been observed.
problem you are trying to address.

4. What Problem 2. How

is the
impact? Statement long?

What is the impact (or pain) for 3. Where

customers, associates and the did it Where in the business does it
business? happen? occur? Identify the relevant
department/business.
31
 Define
Measure
Analyze
Problem Statement Improve
Control

Incomplete Example:
Sellers are really upset that their Jewelry feeds are
not working. I’ve had a lot of Sellers with the same
issue. They keep getting an error.

Why aren’t feeds working?

Good Example:
When Sellers try to upload a Jewelry template Where did it
What is
and fill out the metal type field with the valid happen?
wrong? values, they get an error saying that their metal
type value was incorrect. This is a required
field, so the error prevents them from
submitting Jewelry feed files every time. This
What is the started happening August 26, when the new How long?
impact? Jewelry template was released.
 Define
Measure
Analyze
Project Charter Improve
Control

 A formalized statement of the problem to solve

 Used to give direction and purpose for large scale CI projects (ex. Kaizen
event)
 A summary document that enables all stakeholders to review the project and
commit to its support
 A key deliverable of the Define phase
 A living document – updated as conditions, knowledge and assumptions
change
 Used throughout the entire project

 The charter can be considered the contract between leadership (sponsor

and stakeholders) and the project team
 Define
Measure
Analyze
Project Charter Improve
Control

Business Case Problem/Opportunity Statement

 What benefits will be realized?  What ‘pain’ are we experiencing?
 What is wrong?

Goal Statement Project Scope

 What are our improvement objectives
and targets?
Project Plan
 How are we going to get this done?
 When are we going to complete the
work?
 What authority do we have?
 What processes are we addressing?
 What is not within scope?
Team Selection
 Who are the team members?
 What responsibilities will they have?
 Define
Measure
Analyze
Project Charter Improve
Control
Project Charter Example
 Define
Measure
Analyze
SIPOC Improve
Control

Suppliers Inputs Process Outputs Customers

The provider of Materials, A structured set of The products or The recipient of

inputs (goods or resources or data activities that services that the process
services) to your required to transform a set of result from the outputs
process execute your inputs into process
process specified outputs, Customers can be
providing value to both external or
customers. internal

Start End
5-7 major steps
 Define
Measure
Analyze
SIPOC - ATM example Improve
Control

Suppliers Inputs Process Outputs Customers

(Top level
(Providers of the required (Resources required by the (Deliverables from the (Anyone who receives a
description of the
resources) process) process) deliverable from the process)
activity)
Paragon Case details My Performance HR
HMD report Quality
Pinnacle ATM record data
Pinnacle report Supervisor
DWP PW Adoption report Coaching Associate
metric impact of ATM
Site Leaders Verbal feedback process Site Leaders
ATM
ATM form
HR + Quality PROCESS
quantity requirement

HR My Performance Form
Quality calibration
Case details
Associate
Side by Side
DMAIC Improvement Tools
Phase: Measure
 Define
Measure
Analyze
DMAIC “Measure” Tools Improve
Control

Measure: Identify what needs to be improved. Can it be

measured/quantified?

 Process Map
 Define
Measure
Analyze
Improve
Control
Process Map – What is it?
 Process map shows the steps in a process (i.e: actions which transform
an input to an output for the next step).
 It is a pictorial representation of the steps performed to complete a
process
 It illustrates how a product or transaction is processed, including all
inputs (X), outputs (Y), and opportunities for improvement

Process Maps are applicable to any type of

process: manufacturing, service, transactional, or
administrative
 Define
Measure
Analyze
Process Map Symbols Improve
Control
 Process map shows the steps in a process using meaningful symbols.

Symbol Name Function

Start/End The terminator symbol marks the starting
or ending point of the system. It usually
contains the word "Start" or "End."
Process A box can represent a single step ("add
two cups of flour"), or an entire sub-
process ("make bread") within a larger
process.
Decision A decision or branching point. Lines
representing different decisions emerge
from different points of the diamond
Subroutine Indicates a sequence of actions that
perform a specific task embedded within a
larger process. This sequence of actions
could be described in more detail on a
separate process map.
 Define
Measure
Analyze
Process Maps – Associate Leave Improve
Control
Application
System checks Shrinkage
Associate Applies for System Checks Leave Balance
Yes shrinkage allowance Yes Leave approved
Leave through Aspect for Leave Balance Available?
allowance available?

No No

System throws an Leave rejected

error

Although system throws

an error, it does not
specifically state that the
associate does not have
leave balance. This results
in a contact to Supervisor
and the WFM team.
 Define
Measure
Analyze
Process Map Example (Virtual Gemba Process) Improve
Control
ACE SeSu (KPO) Gemba Process
Tier 1 Tier 2 Tier 3
Evaluate Input details
Daily for completeness,
Resolved within
Gemba Improvement
Department 1

department? NO
(KTR) (Enhancement) or
Issue (Defect)
Associates

Feedback to
Resolve YES
Originator

Evaluate Input details

Daily for completeness,
Resolved within
Gemba Improvement
Department 2

department? NO
(KTR) (Enhancement) or
Issue (Defect)
Associates

Feedback to
Resolve YES
Originator
Site Leaders

Evaluate Input details

Weekly for completeness, Review Top 5,
Gemba Walk Improvement Weekly
Escalation actions
(KPO) (Enhancement) or Gemba Walk (KPO)
as needed
Issue (Defect)
Site Leaders

Feedback to
Weekly Kaizen
Information Input area for
Team Review NO
Complete? additional
(KPO)
information
Kaizen Team (KPO Team Leader)

YES
Document Progress/
Work Issue to Feedback to
Results in Gemba
Resolution Originator
online tool
Potential Activities/Tools
 Review/edit problem statement
 Identify/Implement Workaround
 Identify Root Cause
 Identify and Validate Solution Kaizen Event
JIRA
 Assign POC JIRA Kaizen Event
 PDCA
 DMAIC

Enter Issue in Document Progress/

Work Issue to Feedback to
Gemba Identify Top 5 Results in Gemba
Resolution Originator
online tool online tool
 Define
Measure
Analyze
Benefits of Process Maps Improve
Control

 Define and highlight areas for improvement

 Describe the current state of a process; this can be very revealing
 Help a team organize the project and recognize key areas of focus
 Used to identify:
 Non-value added steps
 Needed steps or resources
 Hidden “factory” (where rework occurs)
 Identify potential quick wins
DMAIC Improvement Tools
Phase: Analyze
 Define
Measure
Analyze
Potential Cause Identification Improve
Control

What is a root cause?

 The most fundamental actionable item which, if it is eliminated, the
problem does not exist
 Source of variation (or waste)
 Need to have a clear problem statement
 There may be more than 1 root cause for a problem
 Root causes are difficult to find
 Root causes should be validated with data

 Without validation, a potential root cause is just a hypothesis

 Define
Measure
Analyze
DMAIC “Analyze” Tools Improve
Control

Analyze: Analyze the data collected to determine root

cause of defects and opportunities for improvement.

 Pareto
 Cause and Effect Diagrams (Ishikawa, aka “Fishbone”)
 5 Whys Analysis
 Define
Measure
Analyze
Pareto Chart Improve
Control

Pareto Charts (a.k.a the ‘80-20 rule’) – Graphical representation of the vital
few against the trivial many (80% of the issues in the process are caused by 20%
of the steps)
 Helps identify the few key causes that need to be addressed to resolve the
majority of problems.

 Uses –
 Define Phase: helps identify which quality problems are the most critical to the
factors under consideration (AHT, PRR, etc).
 Analyze phase: helps identify and prioritize the most likely causes to further dive
into to isolate the root cause.
 Define
Measure
Analyze
Pareto Chart Example Improve
Control
 Define
Measure
Analyze
Cause & Effect Diagram (Ishikawa/ Improve
Control
Fishbone)
Cause & Effect Diagram: Graphical tool to organize potential causes for
further analysis
1. Enter problem statement in the “Head”
2. Brainstorm all potential causes, put on the appropriate area as
“bones”
Some potential root causes may have sub-causes
3. Use data to eliminate non-actual potential root causes
4. Use data to identify most probable root cause(s)
5. Choose most probable root cause(s) for 5-whys analysis
 Define
Measure
Analyze
Cause & Effect Diagram (Ishikawa, Improve
Control
Fishbone) Examples for Fishbone Categories
 The 6 M’s
 Machine (technology)
 Method (process)
 Material (physical, information)
 Man (physical or knowledge)
 Measurement (inspection, environment)
 Mother Nature
 The 4 P’s
General tips:  People
• Choose categories that make sense for you
• Which “bone” a potential cause is listed  Procedures
under does not impact end result  Policies
 Environment (Plant/Technology)
 Define
Measure
Analyze
Amazon Fishbone example Improve
Control

Fishbone Diagram
What is actually causing the
Procedures People
“People” problems?
1 Multiple seller support sites 1 Lack of accountability
2 not all SOP's updated or accurate 2 Tasks not completed on time
3 SOP not clear 3 Data filled out incorrectly
4 tribal knowledge 4 Data is incomplete
5 5 unnecssary tickets cut
6 6

Tickets being cut by the M@ team

are getting caught in t4 causing an
increase in AHT and TTR due to
Problem ticekts not being routed to the
correct team when they are cut

1 tt water ruled out of paragon WF 1 Approvers

2 CTI Ticket confusion (how, who), access, approvers 2 CTI Ticket confusion (how, who), access, approvers
3 outdated cti used 3
4 incorrect cti 4
5 5
6 6

tools Policies
 Define
Measure
Analyze
Root Cause Analysis - Exercise Improve
Control

Situation: Last night you let your friend borrow your baby blue 2002 Honda
Accord with 136,000 miles. You have a job interview this morning and when you
went out to your car it would not start. Fortunately, you were able to call an
Uber to get to the interview. But, you need to find the root cause of why your
car will not start.

Exercise: In small groups, complete a fishbone diagram identifying potential root

causes. Choose the 2 most likely causes for further analysis.

Machine (technology)
Possible • People Method (process)
• Procedures Material (physical, information)
“bones”: • Policies Man (physical or knowledge)
• Environment Measurement (inspection, environment)
Mother Nature
 Define
Measure
Analyze
5 Whys Root Cause Analysis Improve
Control

 Method to dive deeper and deeper into a potential cause

 Continue to ask “Why?” until identify actionable item which, if eliminated,
the problem no longer exists
 Confirm root cause by working way back up with “can cause”
5 Whys Root Cause Analysis
• Why is the workflow not adopted?
• Answer: Because associates are breaking the workflow.
Problem Statement: 1
The “FBA - Lost”
Paragon Workflow is
not meeting • Why are associates breaking the workflow?
• Answer: Because they are using a tool outside the workflow.
adoption goals. 2

• Why are associates using a tool outside the workflow?

• Answer: Because the link within the workflow does not work.
Workflow 3
adoption • Why does the link not work?
too low • Answer: Because the linked database moved to a new server and the new
4 link was not updated.

• Why was the link not updated?

What would happen if • Because the database management team did not know all of the users and
we solved at symptom 5 did not notify of the change.
#4? Would we have
solved the issue?
5 Whys - Confirmation
• Why is the workflow not adopted?
• Answer: Because associates are breaking the workflow.
Problem Statement: 1
The “FBA - Lost”
Paragon Workflow is
not meeting • Why are associates breaking the workflow?
• Answer: Because they are using a tool outside the workflow.
adoption goals. 2

• Why are associates using a tool outside the workflow?

• Answer: Because the link within the workflow does not work.
Workflow 3
adoption • Why does the link not work?
too low • Answer: Because the linked database moved to a new server and the new
4 link was not updated.

• Why was the link not updated?

Confirm • Because the database management team did not know all of the users and
can cause 5 did not notify of the change.
 Define
Measure
Analyze
ATM 5 Why Example Improve
Control
• Why don’t we understand the purpose of the ATM program?
• Answer: Because there is no alignment
1

• Why is there no alignment?

• Answer: Because there is no clear objective.
2

• Why is there no clear objective?

• Answer: Because the process execution has high variability.
3

• Why does the process execution have high variability?

• Answer: Because there is knowledge gap between the people
4 executing the process and how the process should be executed.

X
No Training
X
No SOP
 Define
Measure
Analyze
Improve
Control
5 Whys Exercise
1. Pick two potential causes from your Fishbone diagram
 For real-life issues, you would use data and research to verify which potential causes are
actually the biggest contributors. Since we’re just practicing, use whichever two look
the most likely or reasonable.

2. Complete 5 Whys Analysis for the 2 chosen potential causes from your Fishbone
diagram.

3. Test your 5 Why Results

 Is the final item actionable?
 If you fix/eliminate the last “why” answer, will it resolve or prevent the original
problem?
 How many Whys are needed to get to a root cause? (It won’t always be 5)
 Define
Measure
Analyze
Identifying Root Causes Improve
Control

 Root Causes are not always easy to find

 Dig deep enough – ask questions
 Do not be afraid to go get more data to validate
 Be aware of preconceived ideas

 If you do not find the root cause, problem will likely reoccur
 Define
Measure
Analyze
Identifying and Solving Problems -DMAIC Improve
Problem statement: Current ATM Control
process does not add the value it potentially
could per its purpose of creation

Analyze

… Identifying
Quick Wins …
 Define
Measure
Analyze
DMAIC “Improve” and “Control” Tools* Improve
Control

Improve the target process by Control the improvements to keep

designing creative solutions to fix the process on the new course.
and prevent problems.

  ROI Validation
FMEA
  Mistake Proofing
Error Proofing
  Standardization
Prioritization Matrix
  Documentation
Test Plan
  Others…
Others…

*not included in Yellow Belt Training

Conclusion
Avoid at all Costs
Poorly defined problem statements or goals
 Too vague or too broad, not setting realistic expectations
Leaping to Solutions
 Not identifying root causes of the problem
Blind spots
 Assumptions and biases, not using data to validate problem or solution
Not Invented Here (NIH)
 Shutting out ideas that aren’t your own or come from someone you trust
Taking the Easy Way Out
 Compromising on objectives; addressing symptoms instead of root causes
Downgrading
 Revising facts to fit the solution
Complicating
 Adding unnecessary complexity, time, and cost to the solution
Stifling
 Dismissing and second-guessing others, not learning from SMEs
Remember this
 We deliver many Products & Services  these are produced by
processes
 Every Product and Service has customers and every customer has
Expectations and Requirements
 The degree to which we meet customer expectations and
requirements determines the level of our quality
 All processes have variation, and must be actively managed to reduce
variation in order to maintain and improve quality
Takeaways

 Continuous Improvement
 LEAN and Six Sigma
 Lean Strategies/techniques
 Structured Problem Solving Methodologies
 Improvement tools
Attack the process, engage the people.