Lean Six Sigma White Belt Workshopfor L&D & HR Professionals

Rex Jayson M. TuozoCertified Six Sigma Master Black Belt

Certified PROSCI Change Management Practitioner

Certified Industrial Engineer

www.6sigmaph.com

Welcome participants

WHAT IS SIX SIGMA?

2

ROUND 1: GROUND RULES

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• What is Six Sigma (6σ)?

• Why “6” and why “σ”?

Airport runway metaphor

SIGMA OF STATISTICS

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Standard Deviation = spread of data with respect to mean

σσ

Ave

rag

e

Avera

ge

Hours to Approve Hours to Approve

Ta

rge

t

Ta

rge

t

54321 9876 Hours to Approve54321 141297 16

JOLLIBEEMCDO

TIME TO WAIT IN LINE FOR LUNCH

SIX SIGMA BOAT

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• xx

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WHAT IS SIX SIGMA (6σ)?

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• Six sigma is a systematic, disciplined,

customer focused, data-driven process

improvement methodology that uses

DMAIC to reduce DELAYS, DEFECTS &

VARIATIONS

• Its ultimate goal is to attain 3.4 defects per

million opportunities.

KEY CONCEPT OF SIX SIGMA

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• The DMAIC process allows us to identify the key x’s that we

can use to control the variation in the y

The inputs and process factors that

cause variation in the result

A

function of

Focus here to

improve the

results

Outputs

Result

y = f (x1, x2, xn…)

SIPOC Diagram (High Level Process Map)

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Business Planning

Acquisition New Client

R&D

Production

Logistics & Delivery

Support & After Sales

Credit & Collection

Feasibility Study Business Plan ShareholdersShareholders

Business Plan

Strategic PlanNew Clients

Product Specs

Shareholders

ManagersR&D

OperationsSales Client Reqts.

Finished GoodsProduct SpecsR&DLogistics

Ops Finished Goods DR C&C

DRLogisticsSales/ Cash Accounting

CustomersRequests

Complaints

Resolved

Complaints/ Requests Customers

SIPOC Diagram (High Level Process Map)

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Business Planning

New Business

Plan Services Operations

Claims

Renewal

Feasibility Study Business Plan ShareholdersShareholders

Market, etc.

Business Plan

Strategic Plan

New ClientsShareholders

ManagersPlan Services

Processed PlanProduct SpecsR&D

Customers

Ops Finished GoodsDR

Accounting

DRLogistics Renewed AccountsAccounting

Annual Planning

Executives, Shareholders

Business PlanExecutives,

ShareholdersAnnual Plan Management

Sales

Management

Plan Services Dept.

Claims Dept.

Financial:

Processing Time:

Quality:

CSAT:

L&G:

P5,233,334

3 days ave

87%

3.6 / 5.0

93%

P6,5000,000

3 days ave

95%

4.2/ 5.0

90%

TARGETCURRENT

DMAICPROCESS IMPROVEMENT

METHODOLOGY

10

PROCESS LIFE CYCLE

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•Process Metrics Monitoring (BSC)

•Ops & Financial Risks Audits

•Business Continuity Plan

•Career Lattice/ Succession Plan

•5S Program

1. PDCA (Quick improvements)

2. LEAN SIX SIGMA- DMAIC

(recurring problems)

3. IT Systems Enhancements

(Systems/ Business Analysis)

•Policies and Procedures Management

•Process Mapping

•Resource Planning

•Metrics Development (VOC->CTQ)- BSC

•Setting up of Ops and Financial Risks/

Control

2. Process Management

1. Process Design

3. Process Improvement

DMAIC METHODOLOGY

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• DEFINE the project

• MEASURE the current situation

• ANALYZE to identify cause

• IMPROVE by implementing

solutions and evaluating results

• CONTROL by standardizing

and making future plans

1

2

3

4

5

DEFINE

MEASURE

ANALYZE

IMPROVE

CONTROL

2015 Six Sigma Salary Survey

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Is there a significant difference between

Salary of Green Belt vs Black Belt in PH (2012 - 2015)?

The difference between Salary of Green Belt and Black Belt is SIGNIFICANT

Green Black

Average P77,577.00 P148,818.00

Median 80,000.00 150,000.00

Minimum 28,000.00 87,000.00

Maximum 180,000.00 260,000.00

n 54 45

P-Value = 0.000

Salary (Base Pay)_Black BeltSalary (Base Pay)_Green Belt

250000

200000

150000

100000

50000

0

Data

Boxplot of Salary (Base Pay)_Green Belt vs Black Belt

Two-Sample T-Test and CI: Salary (Base

Pay)_Green , Salary (Base Pay)_Black

Diff. Ave. 71,241

Six Sigma ROI: Project Cost Savings

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Green Belt vs Black Belt Project ANNUALIZED Cost Savings

*Projects without cost savings were excluded

*2008-2015

*Banking, Telco, IT, BPO, Call Center, Health Care, Services, Finance, etc.

Green Black

AVERAGE P2,660,624 P4,193,263

Median 652,884 2,101,818

MIN 13,462 32,220

MAX 21,054,600 22,873,104

n (sample

size)

163 44

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Training Evaluation

Kirkpatrick's Four Levels of Evaluation

Kirkpatrick, D. L. (1996). Techniques for Evaluating training programs. In Donald P. Ely, & Tjeed Plomp (Eds).

Classic writings on instructional technology (pp.119-141). Libraries Unlimited.

WHAT’S NEXT?

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http://slidemodel.com/templates/six-sigma-belts-powerpoint-template/

You

are

here!

KANO Analysis

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• Which will have the greatest positive impact on the

customer?

• Which are within scope or process area of focus?

• Which of the Kano’s Must Be characteristics are

unaddressed?

KANO Analysis

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MUST BE MORE IS BETTER DELIGHTERS

Credit Card

Product

•Always online

•Free 1st annual fee

•Higher credit limit

•Lower interest

rates

•Rebates

•Freebies

•Waived

succeeding annual

fees

Delivery of

monthly billing

statements

•Deliver billing

statements every

month

•Accurate amount

of charges

•Time of delivery (at

least 1 week before

the due date)

•Bills w/ inserts

(e.g. Discount

coupons, promo

flyers, etc.)

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Congratulations, newly certified

Six Sigma White Belts!

Spread the SIX SIGMA good news

DOWNLOAD HANDOUTS HERE:

http://www.6sigmaph.com/pstd.html

QUESTIONS:

rex_tuozo@dlsu.edu.ph