Chapter II: Six Sigma Define Phase
Process Management for Projects
It is the scientific method to plan and operate business process which permits to transmit greater value to customer. The steps are,
1. Define important features of marketplace or business
2. Explain the hypothesis based on remark
3. Assumptions derived based on hypothesis
4. Examine the assumptions until the desired result
5. Repeat 3rd and 4th step for until no variation between hypothesis and results obtained.
Six sigma is a statistical toolkit used for manufacturing process
Measure of quality
Six sigma consist of measure of quality.
Owners and stakeholders
Stakeholders are the group of people involved in success or failure of the business; they are the subset of shareholder. Compared to shareholders, they generate cash inflow for the firm and it consists of internal and external stakeholders.
Internal stakeholders are group of people involved inside business, such as employees and investors. External stakeholders are group of people involved outside business, such as customers, suppliers and creditors. Stakeholders are the person who may gain or lose from company's decision. Various individual gain set of stakeholders.
Shareholders are part of owner in business. Shareholders are 'limited' certain liabilities; may be directors for the firm. They have responsibility to run the firm and discuss problem arise in firm. Shareholders are otherwise called as Owners. Shareholder holds qualities of stock by single individual. Shareholders have 50% of outstanding shares, where they comprise critical decision about future business.
Customers: Every company has many customers to gain profit and good-will for the company.
Creditors: Another key group is creditors, whose watches every action happening in a firm. Sometimes, they can be supplier, government bodies also included as creditors.
Workers: workers are paid regularly; raise some point for their benefits for successful company.
Tool used: Process flow and SIPOC
Collect customer data
Data means information. Data collected for a specific purpose is called as primary data. Data collected reviewed and published by an organization are called as secondary data. Raw data is collected through various methods of collection of primary data are i) direct personal investigation ii) Indirect investigation iii) Data from local agents iv) Mailed questionnaire v) Questionnaire.
Data is collective information in unorganized form. Data is a collection of facts, such as numbers, words, measurements, observation or even just descriptions of things.
Primary Data: Data collected for specific purpose for his own use.
Secondary Data: Data collected and published by an organization and subsequently used by another organization.
Primary data is collected by
• Direct investigation
• Indirect investigation
• Data from local agents
• Questionnaires in mail
• Experiment results.
Using above methods is called as 'raw data'. Statistical data collection can be classified into
1. Collection of data
2. Classification and tabulation of data
3. Analysis of data
4. Interpretation of data
Data collection Method
Objective of using Interview method is to know specific customer's point of view on service issues, product. Interview method is conducted in various levels such as Individual, Group and telephonic method to collect information about the product or service needs. Using interview method, the firm gets ideas, suggestion, and improvement areas on product or services. It is used in different geographical location.
The main objective of survey method is to determine the importance or performance of a product or service. Survey method is used for whole segment or separate group of segment to get information on product or service.
Focus Group method: FG methods used to collect information in wide and deep understandingof customer. It gives common imitation from various customers.
Observation method: Using observation method, data collected when an event or activity occurs. This method does not provide detailed information on product expectation.
Document Review Method: Document review provides background information and it is observed directly. It is time consuming method to review and analyses the documents Classified map describes data that has grouped into different classes.
Probability distributions are the fundamental concept to determine the confidence intervals for parameter and to calculate critical level for hypothesis tests.
1. Binomial distribution is a discrete distribution displaying data that has two outcomes and each trial includes replacement.
2. Poisson distribution is a discrete distribution has only two outcomes as success or fail, it focuses on the number of discrete occurrences over a defined interval.
Project: A project is defined as a set of huge number of activities or jobs that are accomplished in sequence determined. A network is a graphical representation of project, shows the flow as well as the sequence of well-defined activities and events. An activity or job or task is any portion of a project which consumes time or resources and has definable beginning and ending. Event is the beginning and end point of an activity or group of activities.
Analyze customer data
Process Flowchart Diagram or PFD is also called as system flow diagram or SFD. The main objective for using PFD is to show the relationship between major parts in a system. It is used in process engineering and chemical manufacturing business to show major components used in production from one level to another level. Process flow diagram varies in structure and implementation from process to process, it do not provide detailed view about process. Process flowchart is a drawing tool to show flow of process in a production unit. After collecting information from document, the information depicted into process flowchart or process map. These maps are used to make SIPOC chart, where it shows details about input, output and process involved in a process. Using Process flow, six sigma green belt helps to eliminate waste in production in the initial stage. Process Flowchart is a ground level shows flow of process helps to brief about SIPOC.
SIPOC is the pictorial representation of serving customer. SIPOC contains proper order, helps team member to remind major elements for process. SIPOC diagram is a tool used to determine relevant elements in a process. SIPCO helps to define complex process in a classified way, which serves as reference for team members. SIPCO defines objective of work to project team and identifies potential deficiencies. It is created by brainstorming among project team to adopt new strategy for complex process.
Suppliers: Suppliers provide input; they can be stakeholders.
Inputs: Inputs are the key requirements for the process sand represents what suppliers provide.
Process: Process briefly explains about set of actions and activities transits input into outputs.
Outputs: Output may be products or service that process produces and the customer uses.
Customers: Customers include people, systems, companies and downstream process that receive the output process.
Advantages of SIPOC
• Easy to identify input and output process in a project
• Broad view on input and output in a process
• Suppliers can be easily identified.
• Customers are clearly identified, where might use process outputs.
QFD differs from SIPOC is transferring customer’s voice into engineering/process requirements, where it is used after SIPOC to gather customers voice and CTQs. SIPOC classify process, input, suppliers and customers.
Translate customer requirements
Checking questionnaire: Checking involves reducing unacceptable questionnaires. The questionnaire may be incomplete, instructions may not be followed, difference and variance, page missing or unqualified respondent
• Editing:Editing used to identify illegible, incomplete, inconsistent and ambiguous answers.
• Coding: Coding assigns alpha or numeric codes to answer where do not exist already.
• Transcribing:Transcribing comprises in process of taking raw data, creating transformed data where the data can be used for further analysis. It can be automatically eliminate many errors, gives random selection of question and answers, ordering and help avoid some biases.
• Data Cleaning: Inconsistent data are removed in this step to avoid faulty data entry.
• Selecting Data Analysis Strategy: Most common statistical adjustments are applied for purpose of weighting, variable specification and scale transformation.
Six Sigma Process Management