Six-Sigma-A-Complete-Step-by-Step-Guide

Six-Sigma-A-Complete-Step-by-Step-Guide

“IX “IGMA A COMPLETE “TEP-BY-“TEP GUIDE i © 2018 The Council for Six Sigma Certification All rights reserved Harmony Living, LLC, 412 N Main St, Suite 100, Buffalo, WY 82834 July 2018 Edition Disclaimer: The information provided within this book is for general informational purposes only While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the information, products, services, or related graphics contained in this eBook for any purpose Any use of this information is at your own risk The author does not assume and hereby disclaims any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from accident, negligence, or any other cause ii SIX SIGMA: A COMPLETE STEP-BY-STEP GUIDE Using the most recent edition in your workplace? Because we continually attempt to keep our Handbook up to date with the latest industry developments, be sure to check our website often for the most recent edition at www.sixsigmacouncil.org iii iv SIX SIGMA: A COMPLETE STEP-BY-STEP GUIDE v vi SIX SIGMA: A COMPLETE STEP-BY-STEP GUIDE vii Six Sigma, or 6, is both a methodology for process improvement and a statistical concept that seeks to define the variation inherent in any process The overarching premise of Six Sigma is that variation in a process leads to opportunities for error; opportunities for error then lead to risks for product defects Product defects whether in a tangible process or a service lead to poor customer satisfaction By working to reduce variation and opportunities for error, the Six Sigma method ultimately reduces process costs and increases customer satisfaction In applying Six Sigma, organizations, teams, and project managers seek to implement strategies that are based on measurement and metrics Historically, many business leaders made decisions based on intuition or experience Despite some common beliefs in various “ “ negate the importance of intuition in any process Instead, Six Sigma works alongside other skills, experience, and knowledge to provide a mathematical and statistical foundation for E statistics prove that to be true Intuition might guide a project manager to believe a certain change could improve output; Six Sigma tools help organizations validate those assumptions SIX SIGMA: A COMPLETE STEP-BY-STEP GUIDE Without proper measurement and analysis, decision making processes in an organization might proceed as follows: What is beta testing? Beta testing is the act of implementing a new idea, system, or product with a select group of people or processes in as controlled an environment as possible After beta testers identify potential problems and those problems are corrected, the idea, system, or product can be rolled out to the entire population of customers, employees, or processes The purpose of beta testing is to reduce the risks and costs inherent in launching an unproven product or system to a widespread audience  Someone with clout in the organization has a good idea or takes interest in someone  Based on past experience or knowledge, decision makers within an organization believe the idea will be successful The idea is implemented; sometimes it is implemented in beta mode so expenses and risks are minimized The success of the idea is weighed after implementation; problems are addressed after they impact products or processes in some way in the present or the future   Beta testing is sometimes used in a Six Sigma approach, but the idea or change in question goes through rigorous analysis and data testing first The disadvantage of launching ideas into beta or to an entire population without going through a Six Sigma methodology is that organizations can experience unintended consequences from changes, spend money through trial-and-error periods rife with opportunities for error In many cases, organi true gain or loss associated with the change Some improvements may appear to work on the surface without actually impacting customer satisfaction or profit in a positive way The Six Sigma method lets organizations identify problems, validate assumptions, brainstorm solutions, and plan for implementation to avoid unintended consequences By applying tools such as statistical analysis and process mapping to problems and solutions, SIX SIGMA IN MILITARY/DEFENSE officers by 40,000 employees, which was expected to be completed without any sacrifice to the Air Force's current level of operations - The Red River Army Depot Repair Facility in Texarkana, Texas has undergone a series of fruitful Six Sigma projects The facility has used Six Sigma to increase its ability to produce High Mobility Multipurpose Wheeled Vehicles (Humvees) by more than 7000 percent, going from three units a week to 32 in a day Furthermore, the cost of each vehicle has been cut in half, with an $89,000 cost of production turning into $48,000 per vehicle as a result of Six Sigma The main tools used to bring about these changes were the implementation of an assembly line process, improved time and personnel management and enhanced methods for keeping parts in stock Front-line staffers were particularly helpful in suggesting and implementing these changes In addition to the workflow modifications, the Red River Depot began placing stickers on the job site reminding workers that their work ultimately affects the lives of soldiers who fight to defend their country (http://www.dtic.mil/dtic/tr/fulltext/u2/a493547.pdf) - The Pine Bluff Arsenal, located in Arkansas, used Six Sigma to find a better way to produce and repair gas masks Thanks to their improvements, the rate of gas mask production has increased by 50 percent, while repair time has decreased by 90 percent - The Corpus Christi Army Depot saw Six Sigma drastically overhaul their previous process for helicopter repair Their Six Sigma project showed that the group was overhauling engines far too regularly As a result, the depot began overhauling engines after 900 hours of work, as opposed to the previous baseline of 309 In the end, the overhaul time was reduced by nearly 65 percent, while the reliability of the overhaul rose to more than 90 percent The trend of Six Sigma usage in the military is a positive development Although several projects have returned outstanding results, the industry is still merely scratching the surface of what Six Sigma can to help Future projects are sure to have major positive ramifications that will benefit all aspects of the military Because Six Sigma has become so popular in the military, units are encouraged to use any and all resources at their disposal when working on a project Although budgets are often 814 SIX SIGMA: A COMPLETE STEP-BY-STEP GUIDE subject to the whims of politicians, there are plenty of ways military personnel can improve their own processes, as well as the functions of others W overhaul everything at once Choosing the proper project scope will help military units to get the most out of their projects Projects should be big enough to make a huge difference, but not so big that management gets bogged down by the over-analysis of data and processes I onsider all possibilities when coming up with solutions Any process improvement, no matter how small, can provide tremendous benefit to the unit and, by extension, to the entire country Encouraging lower-level soldiers to speak up and identify their pain points will help the project team to come up with solutions that help everyone 815 At first glance, the government might not seem like the poster child for Six Sigma implementation The truly have to answer to its superiors or its constituents And yet, in many ways, the government is actually the perfect forum for Six Sigma process improvements T ly calls to mind elected officials that are responsible for helping the people in a given geographical area These individuals are tasked with many duties that are unseen by the average person Organizing local activities and appearing at community events barely scratch the surface of the responsibilities of an elected official Politicians must work with groups such as law enforcement and special interest organizations in order to facilitate changes that are demanded by the citizens of their local area Additionally, any progress made by the politician is subject to further review by other politicians, which results in many proposed changes never seeing the light of day The workflow of politicians would be less difficult if not for the non-stop stream of outside considerations that interfere with their duties Lobbyists and fellow politicians want support for their own causes, which prompts them to make pitches to other elected officials to garner support As a result, politicians are forced to devote time, energy and money to right thing to from a political perspective Elected officials must also work diligently to raise money, both for their own re-election campaigns and for the parties to which they belong Cold-calling in order to request donations is a harsh reality for many lower-level politicians, and fundraising dinners are the norm for higher-level officials These politicians are also required to acquire endorsements from important people in the community, including newspapers and unions With so much on promises for the future in order to gain support, as opposed to showcasing their track records from previous jobs While elected officials may be synonymous with the popular definition of government, there are plenty of other people that keep the industry running Everyday people that take jobs working in the government also have a say in how well the industry serves its people Civilians working in the government have a wide variety of responsibilities, including serving 816 SIX SIGMA: A COMPLETE STEP-BY-STEP GUIDE as court officials, DMV clerks, IRS auditors and countless other positions The politicians in initiatives The need for government employees to work with elected officials, and the potential for disagreements along the way, highlights the need for Six Sigma in government Additionally, Six Sigma may be able to help politicians to manage the many demands on their time Eliminate Red Tape While the government is commonly associated with being the ul T decision made by government members involves outside parties Citizens may be asked to vote on certain changes, while others simply require approval by higher authorities These added steps add significant lead time to the execution of approved items, often resulting in added costs and unhappy citizens (https://www.isixsigma.com/industries/governmentnon-profit/six-sigma-government-focusing-customer/) Incorporating Six Sigma can help any government office to increase its efficiency One of the main ways in which Six Sigma can make a notable difference is by identifying common areas where progress initiatives stall out It may turn out that a certain office is a culprit in delaying new actions, including improved processes that will help everyone Officials can then work with these offices to develop new ways of gaining approval that will speed up the implementation of new programs and processes Six Sigma can also highlight the true costs that come as a result of these delays For instance, a delay in the execution of an increase for automobile registration fees can ultimately cost a town or county millions of dollars Not only these delays present the image of a disorganized government, but they also hurt the citizens of that community Even if people feel as though they dodged a bullet by not having to pay the increased registration fee this year, they will ultimately have to pay additional money in other areas, The elimination of red tape allows the government to run more efficiently and transparently This makes it easier for the community to have more faith in its government, which ultimately will benefit all elected officials at re-election time 817 SIX SIGMA IN GOVERNMENT Improved Usage of Funding One of the most difficult aspects of government is getting things done with a limited C simply print money at will Financial prudence is important in government, just as it is in any business or industry A branch of government that incorporates Six Sigma will have a better idea of where their money is going, but the applications of Six Sigma go much deeper Thanks to the quality measures taken and the data collected over the course of the project, the government will have a better idea of how much of a return each investment provides A government group that spent $500,000 to renovate an ice skating rink may be pleased to find that residents have attended skating sessions at that rink twice as often over the past three years Discovering the financial potential of improving recreational facilities may inspire those officials to further enhance other government-owned properties, such as golf courses and batting cages This ability to track spending and return on investment may have tremendous benefits for politicians Instead of merely thanking donors for their contributions, elected officials can was positively impacted as a result of their generosity Such personalized shows of appreciation and consideration would be impossible without the data-driven philosophy of Six Sigma Time Allocation Government officials have a lot to In addition to dealing with the red tape that swallows many of their desired implementations, officials have to take time to meet with their constituents, maintain a presence in the community and attend important local events, such as graduations This is above and beyond the responsibilities typically associated with government, including passing laws, identifying avenues for process improvements and lobbying for the necessary support to get their initiatives pushed through the system These many activities take a great deal of time With so much that needs to get done, taking a step back to evaluate the typical workflow seems impossible Once again, Six Sigma comes to the rescue, prompting a re-evaluation of existing process and identifying ways to free up time without sacrificing productivity Just as with financial distribution, politicians will have the chance to see exactly how many hours each week they devote to the various aspects of their jobs Furthermore, as they did with funding, they will be able to see just how productive each of those hours turned out to be For example, a politician might find that fundraising for eight hours a week is marginally 818 SIX SIGMA: A COMPLETE STEP-BY-STEP GUIDE less effective than seeking donations for ten hours a week, proving that eight hours per week is the ideal amount of time to spend fundraising Those extra two hours can be reallocated to a function that needs more attention and that would generate a bigger return This approach to time management could be revolutionary for elected officials and any government employee that has too little time to carry out too many responsibilities A responsible distribution of time commitments may result in a more efficient government Checks and Balances The United States Constitution was written with an emphasis on checks and balances In other words, none of the three branches of government - judicial, executive and legislative should be able to obtain too much power In the event that one of those three branches becomes more prominent than the others, the remaining two branches have the wherewithal to use their power to check the growing branch On paper, this ensures that no one branch of the government can garner too much influence (http://www.usconstitution.net/consttop_cnb.html) T United States Republican officials are inclined to vote for Republican measures while voting down Democratic initiatives, and vice versa The selling point of staying within party lines is one of solidarity If a congressman is a Democrat and he or she wants to get a specific action passed, he or she will receive much more support if that congressman typically supports his or her party on a regular basis Note that these decisions often have little to with the actual preferences of the individuals in q T in and veto measures they actually like just to stay in good standing with their political parties Once again, the idea is that the entire party will stand behind a politician if he or she works with that party on their ideas However, the potential always remains for a “ “ ea 819 SIX SIGMA IN GOVERNMENT Limited Amount of Time Elected government officials come into office with the confidence of the people and their U Terms of service for elected officials ensure that there are a variety of voices contributing to solving the problems posed by the people of a given area They also make sure that no politician can rest on his or her laurels They need to generate results, and they need to so in enough time that voters can take note of the improvements before the next election Six Sigma can be helpful to government officials in so many ways However, the solutions “ “ -sensitive Gathering data, evaluating a broken process and devising ways to improve that process all take time, as I T I I up to each individual serving to make sure the future incorporates the updated processes and efficient workflow that have been implemented through Six Sigma Getting Buy-In The unfortunate reality of politics and government is that not everyone is willing to respect the wishes of other politicians Every politician has his or her idea of how things should be, and any elected official is eager to see those ideas implemented as soon as possible At the same time, politicians with a great vision for the future might see their ideas throttled by the people above them This can happen for a variety of reasons The aforementioned party line issue may change the minds of politicians; additionally, personal philosophies may take center stage, or senior politicians may simply want to take credit for the ideas of people that are lower on the food chain No matter what the situation may be, the fact is that not every good idea comes to fruition, cessary support This is unfortunate, yet unavoidable because of the Catch-22 involved Six Sigma requires total buy-in from all stakeholders who may benefit from a project, but most senior politicians the projected results of the initiative This results in improvements that are partially carried out - or not carried out at 820 SIX SIGMA: A COMPLETE STEP-BY-STEP GUIDE all - through no fault of the Six Sigma project team This can happen even if the team asked for permission before embarking on the project H T U “ W grown steadily over the years - Houston currently boasts more than million residents D H the city found itself facing a $140 million deficit in July 2015 (http://performance.houstontx.gov/sites/default/files/Industrial%20Engineer%20%20Case%20Study%20-%202015-02.pdf) “ “ H 2010s However, when the deficit grew to such a high number in 2015, it was time for Houston to get its most tenured employees involved Since many city employee had put in between 20 and 30 years on the job, this change was necessary in order for those employees to keep their jobs and keep contributing to the welfare of the city H “ “ A T O “ department was responsible for confirmation and payment associated with renting city equipment to other groups Unfortunately, the department suffered from rampant inefficiency It typically took Outside Services 111 days to resolve invoices received from vendors This was a far cr A demand answers The Six Sigma team implemented a series of process improvement measures that helped them to develop a revised process for handling the outside vendors These methods included process mapping, eliminating waste and developing a system for verifying that Outside Services was actually responsible for a given invoice The improved methods proved highly successful After beginning with an average cycle time of 111 days, Outside Services brought its average turnaround time down to 2.5 days Additionally, the group was able to reduce its staff from six employees to one However, this did not mean that those extra employees lost their jobs In fact, Houston has re-invested a variety of resources into its Six Sigma projects, including human capital 821 SIX SIGMA IN GOVERNMENT H Sigma green bel T “ “ W H “ The long-time employees of Houston not only get to continue serving the community, but they are able to so in new and exciting ways that have invigorated the entire staff of city employees The future is bright for Houston, as it is for any city that implements Six Sigma and continues to invest in its solutions Six Sigma is a great resource for both government employees and elected officials Since any improvement in government operations has a trickle-down effect that ultimately helps many people, even the smallest Six Sigma initiative can have large-scale benefits Inefficiency in the government hurts everyone - elected officials and government staffers all feel the strain of broken processes, and nobody faces the impact of these processes more than the citizens of these affected areas Bringing up any ideas that can help to improve the flow of government - ideas, money, time, etc - stands to benefit operations tremendously Government officials may be reluctant to undertake Six Sigma projects out of fear that they H way to use Six Sigma to its fullest potential Talking to everyone involved with a process from the most important people to the lowest-ranking officials - will help bring about a solution that benefits all parties involved Politicians must always remind themselves that the purpose of any Six Sigma project is to streamline internal operations in order to help the people that truly need assistance The focus should never deviate from that objective Re-elections and raising money must come a distant second to what really matters Source http://www.villanovau.com/resources/military/six-sigma-for-defense/ http://www.dtic.mil/dtic/tr/fulltext/u2/a493547.pdf https://www.minitab.com/en-us/Press-Releases/Department-of-Defense-Saves-Billionswith-Lean-Six-Sigma-and-Minitab/ 822 SIX SIGMA: A COMPLETE STEP-BY-STEP GUIDE http://performance.houstontx.gov/sites/default/files/Industrial%20Engineer%20%20Case%20Study%20-%202015-02.pdf https://www.isixsigma.com/industries/government-non-profit/six-sigma-governmentfocusing-customer/ 823 1-Way ANOVA, 566 5 Whys, 86 5S Approach, 56 A Activity Network Diagram, 641 Affinity Diagram, 642 Alternative Hypothesis, 373 Automated x-bar Control Charting: Minitab, 417 Alpha Value, 399 Analysis of Variance (ANOVA), 565 Analyze Phase: Fishbone Diagram, 206; Graphical Analysis, 212; Root Cause Analysis, 206; Statistical Analysis, 220; Tollgate Checklist, 223 Analyze Phase, 158, 163 B Bar Chart: Minitab, 520 Bar Charts, 247; Excel, 247; Stacked, 252 Barriers to Support, 19 Baseline Metric, 198 Boxplots: Minitab, 513 Brainstorming, 86 Brainstorming Tools, 641 Beta Testing, Binomial Distribution Probability Function, 358 Box Plots, 214 Brainstorming Tool: Affinity Diagram, 642 Brainstorming Tools: Brainwriting, 652; Figuring/Role-play, 652; Force Field Analysis, 645; Interrelationship Diagram, 644; Nominal Group Technique, 649; SWOT Analysis, 650 Brainwriting, 652; Card Method, 653; Pool Method, 653 Business Process Reengineering (BPR), 35 C Capability, 241 C-Chart, 424 Coefficient of Determination, 321 Confidence Levels, 639 Correlation Coefficient, 314 Change Implementation, 231 Check Sheets, 649 Chi-Squared Goodness-of-Fit Test, 293 Continuous Data, 400 Continuous Process Improvement, 16 Control Chart, 238 Control Charts: Minitab, 424 Control Phase, 159, 165, 234; Control Plan, 235; Tollgate Checklist, 242 824 Control Plan, 235 CORREL Formula, 317 Correlation, 310; Positive vs Negative, 311 Correlation and Regression: Data Requirements, 331 Correlation and Regression Analysis, 221 Correlation and Regression: Uses, 332 Correlation Coefficient: Formulas, 315 Cost Benefit Analysis, 227 Cost of Poor Quality (CoPQ), 119; Equation, 120 Cost of Quality (CoQ), 121; Equation, 122; Managing, 123; Related to Sigma Level, 123 Critical Path Diagram, 151 Critical to Customer Characteristics (CTC), 114 Critical to Quality Characteristics, 114 Critical to Quality Characteristics (CTQ), 114; Identifying, 115 CTQ Tree, 116 Cumulative Density Function CDF: Minitab, 483 Customer: Focused Improvement, 15 Customer Experience Management Method (CEM), 40 Customer Feedback, 75 CUSUM Chart (Cumulative Sum), 454 SIX SIGMA: A COMPLETE STEP-BY-STEP GUIDE D E Data: Continuous, 186; Discrete, 185; Interval, 188; Nominal, 187; Ordinal, 188; Ratio, 189 Data Analysis ToolPak, 319 Data Driven Processes, Data Sampling: Non-Random, 197; Sequential, 197; Simple Random, 196; Stratified, 197 Deviation, 61 Dotplot, 511; Minitab, 510 Decision Making, Decisions, Defect, 43 Defects, 25; Product, 8; Variance, 60; Variation, 60 Defects per Million Opportunities (DPMO): Equation, 80 Defects per Unit (DPU), 81 Define Phase, iv, 169; Toolgate Checklist, 179 Define Phase, 157, 160 Define Phase: Tools, 175 Delta Value, 400 Design of Experiment (DOE): Response, 637 Design of Experiments, 223 Design of Experiments (DOE), 593; Confidence Levels, 639 Design Phase, 159, 166 Designed Experiment: Steps, 600 Discrete Data, 401 DMADV, 21, 156 DMAIC, 21, 156 DMAIC vs DMADV, 168 DMAIC vs DMADV, 157 DPMO, 10, 23 EWMA Chart (Exponentially Weighted Moving Average), 454 Excel: CORREL Formula, 317; Data Analysis tool, 269; Interaction Plots, 629; Process Maps, 665 Review of Statistical Terms, 395; Steps, 384; Test Selection, 375 Hypothesis Testing, 372 Hypothesis Testing, 231 I Failure Modes and Effect Analysis (FMEA), 182; Revisiting, 234 Factorial Experimentation, 598 Fishbone Diagram, 206 Flow Chart, 657, 667 Figuring Brainstorming (Roleplay), 652 First Time Yeild (FTY), 81 Force Field Analysis, 645 I & MR Chart, 454 Interrelationship Diagram, 644 Improve Phase, 224; Tollgate Checklist, 233; Training, 232; Transition, 232 Improve Phase, 159, 164 I-MR Chart, 443 I-MR Chart, 420, 434 In and Out of the Box Method, 178 Input, 99 Interaction Plots, 629 Interval Plots, 519 Is/Is Not Matrix, 178 G J F Gage R & R: Minitab, 543 Gage R&R, 192; Attribute, 192; Variable, 194 Geometric Distribution, 369 Graphical Analysis, 243 H Histograms: Excel, 285 Histogram: Minitab, 502 Histograms, 277 Hypothesis Testing, 221, 300, 383; 1-Proportion Test, 375; 1-Sample T-Test, 377; 2-Proportion Test, 376; 2Sample T-Test, 379; ChiSquare Test, 378; Likelihood of Error, 374; Mann-Whitney Test, 382; One Sample Wilcox, 381; 825 Jidoka, 25 JumpStart, 40 Just-in-Time Manufacturing (JIT), 58 L Lean Concepts, 43 Lean Process Management, 33 Lean Six Sigma, 25; S Approach, 56; Just-in-Time Manufacturing, 58 Likert Scale, 80 Linear Regression Analysis, 321 M Measure Phase, 161; Collecting Data, 185; Tollgate Checklist, 204 Measure Phase, 158 Measurement Phase: Accuracy, 189; Gage R&R, 192; Resolution, 190; Stability, 192 Measurement Phase: Choosing a System, 189 Measures of Success, 155 Meaurement Phase: Collecting Data, 196 Minitab, 469; 1-Way-ANOVA, 570; Calculate Multiple Probabilities at Once, 489; Column or Row Statistics, 479; Descriptive Statistics, 550; Design of Experiments, 605; Graph Menu, 496; Graphs and Quality Tools, 495; Histogram, 503; Hypothesis Test Assistance, 589; Hypothesis Test Steps, 562; Hypothesis Tests, 554; Interaction Plots, 629; Interface, 470; Menu, 476; Random Data Tool, 477; Regression Analysis, 553; Scatter Plot, 497; Stat Menu, 533 Muda: Types of,, 43 Muda: Conveyance, 50; Correction/Rework, 46; Definition, 43; Inventory, 47; Motion, 48; other forms,, 54; Overprocessing, 51; Overproduction, 44; Type I, 55; Type II, 56; Waiting, 52 N Net Present Value (NPV), 229 Nine Boxes Model, 37 Null Hypothesis, 373 Nominal Group Technique, 648 Non-Normal Continous Distributions: Beta Distribution, 348; Cauchy Distribution, 344; Gamma Distributions, 350; Laplace Distribution, 346; Logistic Distribution, 345; Triangular Distribution, 352; Uniform Distribution, 347; Weibull Distributions, 341 Non-normal Continuous Distribution: Lognormal Distribution, 339 Non-normal Continuous Distributions: Exponential Distribution, 336 Non-Normal Continuous Distributions, 336 Non-normal Discrete Distibutions: Binomial Distribution, 352; Poisson Distribution, 360 Non-normal Probability Distributions, 335 Normal Curve, 292, 336 Normal Distribution, 291 Normal Probabilibty Distributions, 274 Normal Probabilities, 307 NP Chart, 422 O Output, 99 P Pareto Chart, 70; in Excel, 71; Minitab, 538 Pareto Chart, 212; Uses, 74 Pareto Principle, 68 826 Pareto Principle, 68 Payback Analysis, 228 P-Chart, 421 PDCA Cycle, 23 Pie Charts, 255; Excel, 257; Minitab, 520, 527 Poisson Equation, 365 Pilot, 230 Probability Distributions, 483 Probability, 275; Choosing the Right Distribution, 491; Formula, 275 Probability Density Function PDF: Minitab, 483 Problem Function, 84 Problem Statement, 88 Process Capability, 242 Process Improvement, 33 Process Map: Symbols, 657 Process Maps, 656 Process Owner, 101 Process(es), 95; Components, 103; Data, 102; Events, 100; Input, 99; Interdependencies, 96; Major Components, 97; Output, 99; Process Owners, 101; Resources, 96; Tasks, 100; Time, 95 Project Charter, 169 Project Viability Model, 131 Q Quality, 113; Appraisal Costs, 122; Cost of Poor Quality (CoPQ), 119; Cost of Quality (CoQ), 119, 121; Costs of Prevention, 121; Critical to Customer Characteristics (CTC), 114; Critical to Quality Characteristics (CTQ), 114; Critical to Success, 125; CTQ Tree, 116; Definition, 113 SIX SIGMA: A COMPLETE STEP-BY-STEP GUIDE Quality Improvement Programs: Types of,, 33 R R Chart Control Chart, 418 R value, 314 Random Sampling, 415 Root Cause Analysis, 206 Root Cause Verification Matrix, 209 Regression, 310 Regression Analysis, 325 Rolled Throughput Yield (RTY), 82 Rummler-Brache, 37 Run Chart: Minitab, 533 Run Charts, 198; Excel, 200 S S chart Control Chart, 419 Sample Size: Calculations for, 398, 401; Importance of, 396 Sample Size Tests: Minitab, 403 Scatter Diagrams: Excel, 260; XY, 259 Scope, 92 Scope Creep, 92 Scrum, 39 Sigma Level, 241; Calculation of,, 12; Comparison of,, 11 Sigma Levels, 25 Sigma Level, 13 SIPOC Diagram, 103; Brainstorming, 106 SIPOC Diagram: Creating a, 103 Six Sigma: Application of,, 28; Basic Concepts, 60; Call Center, 749; Challenges, 18; Customer Service, 742; Definition, 8, 10; Distribution, 778; eCommerce, 762; Engineering, 723; Field Services, 729; Finance, 700; Food Service, 794; Healthcare, 692; History, 21; History of,, 27; Hospitality, 706; Human Resources, 711; in the Warehouse, 770; Information Technology, 717; Manufacturing, 786; Metrics, 80; Principles, 15; Retail Industry, 755; Sales and Marketing, 735; Team Management, 142; When to use,, 41 Six Sigma Certification: Black Belt, 30 Six Sigma Certification, 29 Six Sigma Certification: Green Belt, 30; Master Black Belt, 31; White Belt, 29; Yellow Belt, 29 Six Sigma Champions, 145 Six Sigma Construction, 801 Six Sigma Project: Problem Statement, 88 Six Sigma Project: Phase-based Timeline, 150 Six Sigma Project: Analyze Phase, 206; Budget, 154; Documentation, 232, 638; Enterprise Level Selection, 127; Improve Phase, 224; Milestone Meetings, 153; Milestones, 172; Objective/Goal, 91; Pilot, 230; Process Level Selection, 139; Scheduling, 149; Scope, 171; Scope and Scope Creep, 92; Stakeholders, 171 Six SIgma Project: Celebration and Reflection, 242; Control 827 Phase, 234; Coorelation and Regression, 331; Measure Phase, 182; Measurements of Success, 173; Selection, 126; Team Member Roles, 172 Six Sigma Project: Charter, 169 Six Sigma Sponsors, 145 Six Sigma Team: Black Belt, 146; Building a, 142; Check Sheets, 649; Members, 144; Process Owners, 145; Responsibility Chart, 646; Six Sigma Leaders, 146; Sponsors and Champions, 145; Team Member Types, 149; Timekeeper, 147 Six SIgma Team: Project Manager, 147 Six Sigma Tools, 8, 641 Solutions Selection Matrix, 224 Scatter Plot: Minitab, 497 Statistical Analysis, 455 Swimlane Diagram, 668 Swimlane Process Map, 657 Stakeholder Analysis, 175 Standard Deviation, 61 Standard Devation: Equation, 62; in Excel, 66 Standard Devation: Reason for Calculating, 67 Starburst Brainstorming, 650 Statistical Process Control, 22, 239; Control Charts, 23 Statistics: 2k vs Multi-level Factorials, 635; Assumption, 628; Central Limit Theorem, 344; ChiSquared Goodness-of-Fit Test, 298; Control Charts, 239; Coorelation and Regression, 310; Descriptive, 274; Descriptive vs Inferential, 274; Graphical Analysis Tools, 243; Hypothesis Testing, 372; Inferential, 274; Interactions, 624; Main Effect, 624; Nonnormal Discrete Distibutions, 352; Nonnormal Probability Distributions, 335; Normal Curve, 22; Normal Distribution, 292; Power and Sample Size, 405; Presenting Data, 457; Probability, 275; Process Capability, 242; Sample Size, 396; Sigma Level, 241; Standard Deviation, 61 SWOT Analysis, 650 T The Central Limit Theorem, 344 Total Quality Management (TQM), 34 Type I Error, 397 Type II Error, 398 U U Chart, 423 V Value Stream: Definition, 15 Value Stream Mapping: Seven Flows, 676; Symbols, 677 Value Stream Mapping, 676 Variation: Definition, 17 Verify Phase, 159 Verify Phase, 167 Visual Controls, 238 Voice of the Customer (VOC): Campaigns, 75; Tools, 77 828 Voice of the Customer (VOC), 75 Variation: Common Cause vs Special Cause, 453 W W Edwards Deming, 23 Walter Shewhart, 22 Waste, 17 X X Y Scatter Diagrams, 259 X-bar Control Chart, 262 X-bar Control Chart, 418