Six Sigma T

ma Templates

Six Sigma Project Charter Template

Project Name / Title

Six Sigma Project (SSP) for increasing byke sales

(Business case)

Group Name

COE/PEX/MAS/CD/OEG/BEX (name of the Six Sigma department)

USE

Black Belt Name

Name of Senior BB heading the Six Sigma Project (this may also be a MBB) - M of ARMI

Department Name

Production (name of the dept/process on which the SSP is being done)

ARMI

Team Members

Names of Junior BBs - M of ARMI

Project Champion Name

Name of SSP champion (I of ARMI)

AND

Names GBs - M of ARMI

Process Owner Name

Name of head of production dept (A & R of ARMI)

GRPI

Names of YBs (this may also include employees from the process) - M of ARMI

Total FTE's Performing Process

50 (total no of employees in production dept)

Total Cost of Process (000's)

Total Working Capital required for running the Production dept for 3 mnths (from Oct - Dec)

Problem Statement

Provide complete and detaile

MODELS

20 (employees responsible for prioritised missing KPOVs)

Defect FTE's (if app.)

Names of other employees from the Process who too are part of the SSP (may not be YBs) - M of ARMI

FOR TEAM BUILDING

Cost of Defect

INR 260 crores (COQ @ INR 10K on 40,000 unsold bykes, 1 lac bykes sold from Oct - Dec & 1.20 Lac bykes sold from July - Sept)

Due to Poor mileage, lot of engine noise & vibration, unsmoorth gear shifting & poor braking system, the byke sales for the last quarter (Oct - Dec 2012) at INR 860 crores are 14% less than the sales figure achieved for the quarter prior to it (ie, INR 1,000

State the Defect or Undesire crores from July - Sept 2012) & overall 22.72% less than the expected target sales figure of INR 1100 crores to be achieved for the same quarter (Oct - Dec 2012) resulting in a total Revenue loss amounting to INR 240 crores. And this dip in sales was
Exclude solutions
noticed across the festival period from Oct - Dec (Diwali, Ramzan, Christmas & New year). Also, the measurement source in the process along with the current process sigma level (to be found in the Measure phase) is also to be updated here.
Do not include causes
Review with Finance
Define measurement source
Include Baseline data (if ava
IncludeTimeframe
Include conditions surround
Project Objective/Desired State

State the Project Objective/Desired State and make sure it links back to the Problem Statement

Clearly define and quantify

By solving mileage problem, lot of engine noise & vibration, unsmooth gear shifting, poor braking system, we expect the byke sales to improve by 51.16% over the current sales figure of 860 crores resulting in an increae in sales revenue by INR 440
crores after 9 months, ie, third quarter of current financial year (prepared in consultation with process owner, sales team & finance team factoring in inflation & other factors crucial to the process from an operational (production & sales), & monetary
standpoint. The specific goal statement is arrived post finding the root cause/s to the problem in the Analyse phase).

70% Defect Reduction Sought

Include Entitlements - Best Performance

Include available benchmark data

Benefits ($000's)

Cost Benefits / COQ Savings

Include Shareholder/Cost Benefits

Internal Failure cost savings

Include Client Service Benefits - Intrnl/Ext

xternal Failure cost savings

Internal/External Client Benefits

Employee Benefits

External failure cost savings on future production after June (1st

quarter of current fin yr) post successful completion of SSP
Non cash benefit given existing customers like free servicing,
beyond the contract period, etc.
Sum of above three values/figures

Revenue

Employee Benefits

Client/Employee Benefits

Internal failure cost savings on future production after June (1st

quarter of current fin yr) post successful completion of SSP

Total Cost Benefits

higher client satisfaction, high dividend/interest pay out, etc.

Declaration of extra bonus for better process (production) performance, high sales achieved, etc.

Cost Benefits outside of Group

Eg, Supplier Discount received for purchase of more raw material due to increased production

Can project be performed in 4 months?

Dependencies

Significant Systems Development

Description:

Major Capital Investment

External Considerations

Potential to Leverage

Yes

No

Description: Possibility of applying the learnings from this Six Sigma Project to other areas in the business/company/organization having similar or related problems.

Other Information

Include any other information related to the Project as necessary

Any contingent or non-contingent event being favourable / unfavourable for the SSP. For eg, Annual budget of the govt, any nature's event/calamity, etc, that may be favourable or unfavourable to the SSP.

SS Project Charter

Six Sigma Project Template

09/17/2016

SIPOC

our product or
service?
Suppliers
1

What do the suppliers provide to my process?

Input
1
2
3
1
2

Self or
placement
/catering
company, name
of supplier of
computer
system & other Name of Staff member/s & computer
system with other relevant infrastructure
infrastructure

patron, bank
owning card
& swipe
machine,
name of
computer
system
supplier &
stationery
supplier
3

cash, debit & credit crd, swipe machine,

computer sytem,staff, printer & stationery

and the major steps in the

process.
Process (High Level)
Start Point:
customer comes

What product or service does the process

deliver to the customer?
Output
1
2

Operation or Activity

places order

pays money

system entry for food

order taken

computer system

money, sale entry &

receipt

cash box, bank

their requirements for

performance
Customers
1
2
1
2
1

kitchen

computer
system

patron

name of place
owner, infra
supplier,
grocery
supplier, staff
supplier

Kitchen
Patron,
Quality dept,
name of
printer
supplier &
stationery
supplier
4

place, necessary infra, grocery & names

of kitchen staff
Consumable food

Feedback qns, printer & stationery

1
2
3

Preparing Food
collects order & eats

gives feedback
5
6
7
8
9
10
11
End Point:
customer leaves

consumable food
satisfaction level

feedback

patron
patron

Quality

Dept
2
1
2

SIPOC Map for Mileage

I
P

Giving
accelerator
(SP)

Name of petroleum
company & pump

Fuel Oil

1) Fuel
injected into
carb

fuel

carb

Name of the
Automobile
engineer/engineering
team

AFM ratio

2) Fuel mixes
with air

AFM

carb

Suppliers

Inputs

(Providers of the required

resources)

(Resources required by the

process)

Process
(Top level description of the
activity)
Requirements

Outputs
(Deliverables from the process)

Customers
(Anyone who receives a
deliverable from the process)
Requirements

Mother nature

Man

Driver''s Stability

Cause

Cause

Training
Seasonal
Impact

Improper
Guidence

wrong
forecastin
g in time
and
distance

Method

Cause

Vehicle

Quality

er

Measurement

Machine

Material

aterial

WRONG SHIPMENT OF GARMENTS

Effect
(Y)

Brainstorm Potential Root Causes

Problem
Statement:

Rank

Potential Root Cause

*Common types of data and analysis

Detailed Process Review
Process Mapping
Visual Analysis
Cause and Effect (Event) Analysis
Data Collection and Analysis
Additional Tests and Experiments

Supporting Data & Analysis?*

Source?

Who?

When?

Analysis description:
Careful walkthrough of the process step by step to determine the source, nature and frequency of the problem
Detailed process flow analysis to understand all the steps of the process, how the problem occurs and to document the process flow
Visual examination of the problem and visual documentation such as digital photos and videos
Examination of the potential relationship of factors and or event conditions on the problem
Measurement of performance from the product or process and an analysis of current data and associated factor effects
Additional tests or experiments designed to understand the current situation and determine the root cause

Data Collection Plan

Define What to Measure

Measure
Name of
parameter
or condition
to be
measured

Type of
Measure
X or Y
attribute or
discrete
data,
product or
process
data

Operational
Definition

Define How to Measure

Measurement
or Test Method

Clear definition of
Visual
the measurement
inspection
defined in such a
or automated
way as to achieve
test?
repeatable results Test instruments
from multiple
are defined.
observers
Procedures for
data collection
are defined.

Data Tags Needed

to Stratify the Data
Data tags are
defined for the
measure. Such
as: time, date,
location, tester,
line, customer,
buyer, operator,
etc.

Data Collection
Method

Who will
Do it?
Person(s)
Assigned

Sample Plan
What?

Manual?
State
What
Spreadsheet?
who has
measure is
Computer based?
the
being
etc.
responsibility? collected

Where?

Location
for
data
collection

When?

How Many?

How
The number
often
of data
the
points
data
collected
is
per sample
collected

Sigma Level (no shift) Calculator

NO 1.5 SIGMA SHIFT IN THESE CALCULATIONS
Enter process sigma level, compute PPM
Process Sigma Level ->
6
PPM
50000.0
Percent
5.00000%

1000000
300

Enter percent, compute PPM and process sigma level

Percent ->
1.00%
PPM
30000
Process Sigma Level ->
1.881
Enter DPMO, compute process sigma level
Process Sigma Level ->
4.5
DPMO
3.4

3.1
3.4

15
50000

Rolled Throughput Yield Calculator

Step

DPMO

DPMO/1,000,000

1-(DPMO/1,000,000)

1
2
3
4

5,000
15,000
1,000
50

0.005
0.015
0.001
0.00005

0.995

RTY=

0.99472

0.985
0.999
0.99995

DPMO Calculator
This template calculates the DPMO using the number of defects.
Total number of units:
Number of defects:
Opportunities for Error in one unit:
DPMO =

2500
4
20
80

Not sure of what goes into the units?

The Data Processing Dept supervisor wants to calculate the DPMO of data entry errors in her dept.
A total of 2,500 forms were processed that day, and the supervisor finds 4 fields with error.
There are 20 entry fields on each data entry form.
For this scenario:
Total number of units = 2,500
Number of defects = 4
Opportunities for error in one unit = 20

Conversion Calculator
Sigma Conversion Table
Defects Per
Million
Opportunities
933,200
915,450
894,400
869,700
841,300
809,200
773,400
734,050
691,500
645,650
598,700
549,750
500,000
450,250
401,300
354,350
308,500
265,950
226,600
190,800
158,700
130,300
105,600
84,550
66,800
52,100
40,100
30,400
22,700
16,800
12,200
8,800
6,200
4,350
3,000
2,050
1,300
900
600
400
230
180
130
80

Sigma Level
(With 1.5
Sigma
Shift)*
0.000
0.125
0.250
0.375
0.500
0.625
0.750
0.875
1.000
1.125
1.250
1.375
1.500
1.625
1.750
1.875
2.000
2.125
2.250
2.375
2.500
2.625
2.750
2.875
3.000
3.125
3.250
3.375
3.500
3.625
3.750
3.875
4.000
4.125
4.250
4.375
4.500
4.625
4.750
4.875
5.000
5.125
5.250
5.375

Cpk (Sigma
Level / 3) With
1.5 Sigma Shift*

0.000
0.042
0.083
0.125
0.167
0.208
0.250
0.292
0.333
0.375
0.417
0.458
0.500
0.542
0.583
0.625
0.667
0.708
0.750
0.792
0.833
0.875
0.917
0.958
1.000
1.042
1.083
1.125
1.167
1.208
1.250
1.292
1.333
1.375
1.417
1.458
1.500
1.542
1.583
1.625
1.667
1.708
1.750
1.792

30
5.500
1.833
23
5.625
1.875
17
5.750
1.917
10
5.875
1.958
3
6.000
2.000
The table assumes a 1.5 sigma shift because
processes tend to exhibit instability of that magnitude
over time. In other words, although statistical tables
indicate that 3.4 defects / million is achieved when
4.5 process standard deviations (Sigma) are between
the mean and the closest specification limit, the
target is raised to 6.0 standard deviations to
accommodate adverse process shifts over time and
still produce only 3.4 defects per million opportunities.

FMEA

Process / Product
Failure Modes and Effects Analysis
(FMEA)
Process or
Product Name:

Prepared by:

Responsible:

FMEA Date (Orig) ______________ (Rev) _____________

Potential Failure Effects

What is the
What is the Key In what ways does the Key
process step for Process Input? Input go wrong?
producing the (got from SIPOC
missing KPOV
map)
(got from SIPOC
map)

What is the impact on the Key

Output Variables (Customer
Requirements) or internal
requirements?

Call taking by
Agent on call,
call center agent customer
information had
with the agent on
the system &
calling
infrastructure

Customer may lodge a

complaint with legal
authorities, file for
compensation, go to the press
to publicise the matter & we
can lose the customer & may
be even our other customers
who are well known to the
affected customer & have
good personal/professional
relationship with him

If confidential customer
information is leaked or
given to 3rd party (ie,
anyone other than
customer)

S
E
V

Potential Causes

10

What causes the Key Input to

go wrong?

1) Agent is not attentive 2) No

guidelines for additional
customer information
verification on phone for doing
fund transfer 3) confidential
customer information reaching
wrong hands (excludes the
agent) 3) Corrupt/cheat agent &
the designer of the IT system
(which captures confidential
customer information)

O
C
C

Current Controls

What are the existing controls and

procedures (inspection and test)
that prevent eith the cause or the
Failure Mode? Should include an
SOP number.

D
E
T

1) Regular Quality monitoring 2)

Team briefings on fatal errors
(including fradulent calls received
for doing fund transfer) 3) List of
do's & dont's for each agent
2

Page 19

R
P
N

How well can you

detect cause or FM?

Potential Failure Mode

How often does

cause or FM occur?

Key Process
Inputs
(KPIVs)

How Severe is the

effect to the
cusotmer?

Process Step

Page ____ of ____

10

Actions Recommended

Resp.

Actions Taken

S
E
V

O
C
C

D
E
T

R
P
N

What are the actions for

Whose
What are the completed
reducing the occurrance of Responsible
actions taken with the
the Cause, or improving
for the
recalculated RPN? Be
detection? Should have recommende
sure to include
actions only on high
d action?
completion month/year
RPN's or easy fixes.

1) Bringing a strict policy for Manager

agents on calls having legal
implications 2) Police
verification before joining 3)
Claim reimursement of loss
from the agent commiting
200 the fatal error 4) Give a call
back to the customer to
verify & confirm the
instruction given to the
bank

Columns H & K

10

90

FSeverity

Effect

Criteria: Severity of Effect Defined

Ranking

May endanger operator. Failure mode affects safe vehicle operation and / or
Hazardous:
involves noncompliance with government regulation. Failure will occur WITHOUT
Without Warning
warning.

10

May endanger operator. Failure mode affects safe vehicle operation and / or
Hazardous: With
involves noncompliance with government regulation. Failure will occur WITH
Warning
warning.

Very High

High

Moderate

Low

Very Low

Minor

Very Minor
None

Major disruption to production line. 100% of product may have to be scrapped.

Vehicle / item inoperable, loss of primary function. Customer very dissatisfied.
Minor disruption to production line. Product may have to be sorted and a portion
(less than 100%) scrapped. Vehicle operable, but at a reduced level of
performance. Customer dissatisfied.
Minor disruption to production line. A portion (less than 100%) may have to be
scrapped (no sorting). Vehicle / item operable, but some comfort / convenience
item(s) inoperable. Customers experience discomfort.
Minor disruption to production line. 100% of product may have to be reworked.
Vehicle / item operable, but some comfort / convenience item(s) operable at
reduced level of performance. Customer experiences some dissatisfaction.
Minor disruption to production line. The product may have to be sorted and a
portion (less than 100%) reworked. Fit / finish / squeak / rattle item does not
conform. Defect noticed by most customers.
Minor disruption to production line. A portion (less than 100%) of the product may
have to be reworked on-line but out-of-station. Fit / finish / squeak / rattle item does
not conform. Defect noticed by average customers.
Minor disruption to production line. A portion (less than 100%) of the product may
have to be reworked on-line but in-station. Fit / finish / squeak / rattle item does not
conform. Defect noticed by discriminating customers.
No effect.

Page 20

2
1

FOccurance

Probability of Failure

Possible Failure Rates

Cpk

Ranking

1 in 2

< 0.33

10

Failure is almost inevitable

1 in 3

0.33

High: Generally associated with

processes similar to previous

1 in 8

0.51

processes that have often failed

1 in 20

0.67

Moderate: Generally associated

with processes similar to

1 in 80

0.83

previous processes which have

1 in 400

1.00

experienced occasional failures,

but not in major proportions

1 in 2,000

1.17

Low: Isolated failures associated

with similar processes

1 in 15,000

1.33

Very Low: Only isolated failures

associated with almost identical
processes

1 in 150,000

1.5

1 in 1,500,000

1.67

Very High:

Remote: Failure is unlikely. No

failures ever associated with almost
identical processes

Page 21

FDetection

Detection

Criteria: Liklihood the existence of a defect will be Ranking

detected by test content before product advances
to next or subsequent process

Almost Impossible

Test content detects < 80 % of failures

10

Very Remote

Test content must detect 80 % of failures

Remote

Test content must detect 82.5 % of failures

Very Low

Test content must detect 85 % of failures

Low

Test content must detect 87.5 % of failures

Moderate

Test content must detect 90 % of failures

Moderately High

Test content must detect 92.5 % of failures

High

Test content must detect 95 % of failures

Very High

Test content must detect 97.5 % of failures

Almost Certain

Test content must detect 99.5 % of failures

Page 22

Six Sigma Process Control Plan

Process Name:

Prepared by:

Page:

Approved by:

Document No:

Location:

Approved by:

Revision Date:

Area:

Approved by:

Supercedes:

Customer

Sub Process

Int/Ext

Sub Process
Step

CTQ
KPOV

KPIV

Data type of
KPOV

Specification/
Requirement
USL

LSL

Measurement
Method & $ Gage Sample Size
R&R

Frequency

Who
Measures

Where
Recorded

Decision Rule/
Corrective Action

of

SOP Reference

Key Process Output Variable

Capability Status Sheet
Customer Requirement
(Output Variable)

Measurement
Technique

%R&R or P/T
Ratio

Upper
Spec
Limit

Target

Lower
Spec
Limit

Cp

Cpk

Sample
Size

Date

Actions