Essential Six Sigma for Management Consultants

Let’s start with the essential things around Six Sigma. We will discuss what Six Sigma is and we will briefly discuss the most often-used framework – DMAIC.

Let’s start with a short definition

• Six Sigma is a data-driven method used to improve the process.

• Using this method you reduce the so-called defects, and you increase the consistency of results. This in turn will lead to improvement in quality.

• Six Sigma helps identify what is slowing down the process, how to eliminate possible delays, how to improve the process, and remove additional problems that occur

As we have mentioned, the main goal of Six Sigma is to eliminate defects and improve the quality of the process. Let's start with the definition of a defect:

• Any unacceptable deviation from the norm that the company sets for a specific process, or outcome

• A defect can be a process output, a product, or a service that does not meet the customer’s requirements and expectations for quality

Let’s start with a short definition of DMAIC

• One of the most used Six Sigma methodologies

• DMAIC concentrates on making improvements to a business process in order to reduce or eliminate defects

• It is used to improve the efficiency and effectiveness of a product or process that already exists but is no longer meeting customer needs/specifications

In this section, we will discuss what you will have to do during the Define stage. We will discuss tools and frameworks used during this stage. You will learn things like SIPOC, the voice of the customer, CTQ, Fishbone Diagram, Issue tree, and 5 Why.

Let’s start with a short definition of a Problem

• A problem is a statement about a condition to be improved or a difficulty to be eliminated

• Any kind of deviation from the expected result

• Something that is not according to the norm

• An obstacle that may stop you from achieving the goal

Let’s start with a short definition

• By Voice of customers, we mean all sorts of comments, and feedback we get from our customers

• VOC tells you what really matters to your customer and what you should concentrate on

• The Voice of Customer shows you the expectations, and preferences, of your customers, comments about the product or service

• The main benefit of using Voice of Customers is knowing, in measurable terms, what customers want

• The purpose of Voice of Customer is to identify the critical requirements that are the measure of the success of the product or service delivered to the customer

Let's see the difference between needs and recquirements

§Critical to Quality (CTQ) Approach is a tool that can be used to translate customer’s needs into specific measurable performance requirements

§CTQ are metrics that must be met in order to satisfy the customer’s needs

§We can also say that they are key measurable characteristics of a product or service that link a company’s actions to the things that are most important to the customers

Let’s start with a short definition of a SIPOC

• SIPOC is a tool, that is used to identify all relevant elements of a process that we want to improve before work begins

• It summarizes the inputs and outputs of one or more processes in table form

We will see how to gues the root cause.

Fishbone Diagram, also known as Ishikawa Diagram or Cause-and-Effect Diagram

The graphical method used to identify the root cause of defects that are causing problems in the process

The name of this tool comes from its similarity to the bones of a fish.

The bones, an area of potential causes, are connected to a spine leading into the fish’s head, which symbolizes a defect or a problem

Let's apply this method to restaurants

Depending on your needs, you can adapt the categories in the Fishbone Diagram according to your needs. Let’s see what it would look like for a problem in a restaurant.

In production, you will know far less than your customer’s team so you have to use smart ways to get to the bottom of things. The 5-Why method is one such method. In this lecture, I will show you how to use it in practice

Issue tree is a simple yet powerful concept used in consulting for structuring discussion and picking the right topics to concentrate on. In this lecture, I will show you the principles of using it as well as a practical example

In the next lectures, we will have a look at examples of issue trees

Here I will show an example of an issue tree in Logistics

Here I will show an example of an issue tree in Retail.

Here I will show an example of an issue tree in FMCG.

In this section, we will discuss what you will have to do during the Measure stage. We will discuss tools and frameworks used during this stage.

Now let’s think about what we would like to measure when it comes to the customer experience in a restaurant.

Let's have a look at different types of data that you will use.

Let’s think for a minute where we can get data from when it comes to the restaurant.

In some cases, you will have to define a formal data collection plan. In this plan, you must describe in more detail what data you need.

Let’s create a data collection plan for the restaurant in which we want to shorten the service time.

The analysis phase turns raw data into conclusions. It is important to choose the right analytical techniques. Based on analyses we will be able to improve processes. In this section, we will see how this can be done in practice. You will learn things like correlation, regression analysis, comparison of averages, random variables, and normal distribution.

Let's see what we want to measure in the Measure stage

Let's look at the definition of correlation

• It is a measure that helps check how 2 variables are related and whether they behave in the same way.

• Correlation also tests the strength of the movement. The higher the absolute value of the correlation, the stronger the similarity in behavior

• We can check whether things behave in the same way, but we cannot check whether they influence each other and what the direction of the influence is

• We use the so-called Pearson correlation coefficient to measure the correlation

Now, let’s try to analyze the results from the correlation analysis for the service time for the restaurant chain.

In this lecture, we will solve the case study that we have introduced.

In this lecture, we will solve the case study that we have introduced.

In many cases, the outcome of certain phenomena is unknown. In such situations, we need Random Variables.

Random variables at the end will produce a specific outcome but we don’t know exactly what it will be.

Random Variable is what you will find behind closed doors. Once you open the door you will know for sure but before that, there are only some potential results, nothing certain.

In order to be able to recreate the game in Excel, we will have to reframe it. I will show you how to do it and how later on to use it for modeling in Excel.

In order to be able to recreate the game in Excel, we will have to reframe it. I will show you how to do it and how later on to use it for modeling in Excel.

The normal distribution is a special type of density curve that is bell-shaped. Sometimes it is also called the bell curve or normal curve. Let's see what is the logic behind

Standard deviation definition:

• It is a measure of how spread out the numbers are

• Standard deviation tells us how close to the mean are the values in our data set

• The bigger the standard deviation the further away the values are from the mean

A regression model is a powerful tool you can use to analyze data, predict things, and find relations between different phenomena. I will show you how to use it in Excel.

A regression model is a powerful tool you can use to analyze data, predict things, and find relations between different phenomena. I will show you how to use it in Excel.

Let's do a regression analysis for a restaurant. Here I will discuss the data

In this lecture, we will solve the previously introduced case study

One of the methods of data analysis is to compare the average results obtained from the measurements. Let’s have a look at how we can check if there is a link between service time and selected variables by looking at average results by certain groups.

Let's look at a case study. We will look at the data that you will need to calculate and compare averages

In this lecture, we will solve the previously introduced case study

In certain situations, the links between the variables can be noticed by looking at the chart. This may be used as a method of finding the source of problems.

Testing can be also used as a way of analyzing what actually influences the KPI we try to improve. Let’s see how testing can be used to test the link between 2 variables.

Imagine that we would like to test if the Level of experience of employees has an impact on Service Time. Let’s have a look at how we can do it in the example of the restaurant.

One of the most interesting stages is the improvement stage. You know what the problem is, so now you have to come up with potential solutions and test them. In this section, we will discuss what you can do to improve the situation based on previous analysis.

Let’s start with a short definition. Funnel analysis is:

• It is a tool that can be used to map and analyze a series of events that lead to a particular goal

• The goal may be Sales, Gross Margin, number of customers acquired, number of projects done

• Funnel analysis can help you manage the process of achieving the goal and find ways to improve the situation

Funnel Analyses in Testing:

• A tool that can be used to map, manage and analyze various ideas aimed at improving or completely changing a given area of the business

• Funnel Testing helps you find fast potential improvements as well as minimize the risk of causing problems

• To use the full potential of the Funnel Analysis in Testing we should divide more complicated concepts/ideas into a series of smaller tests

• In Funnel Testing you will impose limits on most stages to manage the process smoothly

The Funnels in Testing usually consist of 5 main stages

• Define your goal

• Generate potential ideas for improvements

• Create a ranking of the ideas

• Test and analyze the results

• Implement the changes

Every funnel is a hungry beast. Let’s have a look at how you can generate ideas for your testing funnel.

Imagine that you are working for a Fashion Retailer. You have gathered a list of potential ideas to be tested. Before you move to test, rank them.

In this lecture, we will solve the previously introduced case study.

In this lecture, we will solve the previously introduced case study.

In this lecture, we will solve the previously introduced case study.

After testing the ideas you will get results that you have to try to interpret. Let’s analyze one of the ideas that we have selected for testing.

In this lecture, we will solve the previously introduced case study.

In this lecture, we will solve the previously introduced case study.

Once you have improved certain KPIs. It’s a good idea to make sure that the progress you have made is not wasted. Therefore, you need to implement some control mechanisms. In this section, we will see how this can be achieved.

Zero defect rules are not about making zero mistakes. It is about finding mistakes as soon as possible and eliminating them. In this lecture, I will show what it is and how to use it in practice.

There are many examples of Poka Yoke in an office environment. Let’s look at some of them.

In the last section, we will try to apply the techniques we have discussed to improve the situation in a clinic.

Let's look at the data that you will need to solve the case study

In this lecture, we will solve the previously introduced case study.

In this lecture, we will solve the previously introduced case study.

In this lecture, we will solve the previously introduced case study.

In this lecture, we will solve the previously introduced case study.

In this lecture, we will solve the previously introduced case study.

In this lecture, we will solve the previously introduced case study.