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Six Sigma Define Phase

1. VOC, VOB, CTQ

But what are the typical triggers for me to generate project ideas? How do I do that? What could the possible triggers be? Let us look into this. You start by looking at the Voice of the Customer VOC Analysis, right? This voice of a customer explains the problems the customer is facing. Sometimes customer might be very vocal intelling you that this is my problemthat I'm facing with the business. Sometimes customers don't know they'll be ambiguous, and sometimes they'll not open up. But the onus is on you to identify what the problem is from a customer perspective. Think about Domino's Pizza sitting at home. If you order Domino's Pizza, the pizza will be delivered to you within 30 minutes. If not, you can have pizza for free if it exceeds 30 minutes. Now, why do you think Domino's Pizza has said 30 minutes as if it's cool? Did you say Domino's Pizza was what you wanted within 30 minutes, or did I say who said? No one has told them. They themselves analysed and understood that if they delivered the pizza within 30 minutes, it would be still hot and you would enjoy the yummy taste of that. So you'll also have to get into the shoes of the customer and understand what the customer's problems are. even if the customer is not opening up. That's the first thing that you need to look into. You also need to look into what the voice of business is. The voice of business explains the problems the business is facing. The very reason any company does business is to be profitable in the market. It's there to generate revenue so that business might sustain, right? So you need to understand what the voice of business is. And then you need to look into the process. You need to look into what the cost of poor quality is, what is triggering process defects, why there are high numbers of defects, and why there is poor quality. Right? You need to identify all these reasons. And once you put together all these reasons, then you identify the corresponding CTQs. We'll be doing an exercise on that. You identify all the corresponding CTQs critical to quality. And from there, you will note down the potential problems of the customer or the organisation based on the Voice of Business. Right? You might also want to look into the cost of poor quality. And then you actually try to come up with what CTQ is, etc. But first, let us delve into the concept of "voice of the customer." voice of business. The voice of the customer is obtained from the downstream customer, the direct recipient of the processor's service. If Apple makes iPhones, or if Apple is manufacturing iPhones, who is the end customer? you and me. Who is purchasing an iPhone and starting to access that, right?So if we say that the screen size of the iPhone isn't good, then that's a problem that we are raising, right? And Apple is going to take it seriously. They are going to do a project on that and fix that issue in future releases. So it's directly going to come from the end customer? Yes. This information can be internal, from a process partner to the company, or it can also be external. Within your organizations, you may be serving customers. Also, if you're from a quality department, your clients would be the different project managers and the different delivery managers. Right. But they in turn might be doing projects for different clients—external clients. Alright, let us look into this. The voice of the customer is an expression of customer needs—but what is it that the customer desires? And when the voice of the customer is obtained from an internal process partner, it tends to be very specific. But keep in mind that you may want to confirm that with information from the ultimate external customer. We need to do that. All right. And when I say the voice of customer would bespecific when it comes to internal process partners or internalcustomers, is this they clearly say that I need deliveryon Tuesday as opposed to your external customers who wouldsay I need faster delivery, right? Alright. When obtained from an ultimate external customer, the needs must often be translated into something meaningful for the process. It may be ambiguous. Your external customer might say, "Deliver with high quality," as opposed to an internal process partner who would say, "Deliver with not more than two defects per product," "with not more than one defect per product," or "with zero defects." And that is what six-sigma is all about. We try to achieve almost zero defects bydefinition, says it is 3.46 per million opportunities. And then we look into the voice of business, which is often best obtained from the process owner. Yeah, you go to a person who is the process owner, who is managing the process, who owns the process, and who makes changes to the process and ensures that process is implemented. Right. And if you collect the voice of business, it tends to be very specific. For example, a lead time of 2 hours, labour efficiency of 85% of standards, and so on and so forth. And these are usually in reference to the health of the organization. Right. It's normally going to speak about the health of the organization, how the organisation is performing, and whether it's doing a good job or not. And you might also want to look into process cost efficiency and repair costs, which are also primarily derived from the voice of business. Once you have the voice of the customer and the voice of the business in place, you need to move on to look at what is critical to quality for you. CTQ is a product or a service characteristic that's going to satisfy a customer requirement or a process requirement. We'll do a deep dive; we'll do an exercise; we'll try to identify what the CDQ is all about. These measures, which relate to the important parameters of products or services, have these typical outputs: quality, cost, and delivery. Right. when you're dealing with quality. You refer to that measure as CTQ, or critical to quality. CTC is critical to cost when it comes to cost. When you're dealing with delivery, you say it's critical to delivery. All the three above are most often thenot referring most companies as CTQ because costand delivery are ultimately going to result orare considered to be part of quality. If you want higher quality, spend higher cost. If you want high quality, ensure that your deliveryprocess is in place, which is robust in nature. But few companies also consider the three as separate entities altogether. not absolutely fine.

2. CTQ measures

Here are a few of the categories of metrics. If you want to come up with your CTQfor cost, for example, which is more often than not derived from the business, you can look into this process cost, efficiency, repair costs, purchase price, depreciation, residual value, so on and so forth. If you're looking into the quality aspect, which is often derived from the voice of the customer, you might want to look into these products, services, or features, attributes, or dimensions: reliability, availability, taste? Yeah, this is also measured, basically, right? When you go to McDonald's, I've given this example in the past. When you go and order a McDonald's burger, it's going to taste a specific way. If you go to a different McDonald's store and order a burger, it will taste alike. They measure the taste as well. And what is your success mantra? They say that they do not bake; they do not cook; they manufacture. That is how strong their processes, that is howstrong their measurement is and that is how strongthe metrics that they have chosen are. If you want to choose something related to speed, which is usually derived from both the voice of the customer and the voice of the business, you can look into lead times, delivery times, turnaround time, cycles, time delays, and so on and so forth. These things would become clearer when we did the exercise. So don't get bogged down and don't press the panic button yet. If you want to look into service and safety-related metrics, here are a few examples corporate social responsibility, CSR, most tierone, tier two companies do this. You can look at these options as your metrics or CTQs. Okay?Output Measures Output measures are also known as "y" data. We have already discussed this equation. Y is the same as f of x. What does this say? Output is equal to a function of inputs, right? That is what it says. So output metrics quantify the overall process, which includes how well the customer needs and requirements are met per meter. Typically, it's related to quality and speed requirements and also includes how well business needs and requirements were met. Typically, it's talking about cost and speed requirements. So it's all about business and customers, right? You are considering both. Now look at these images. Wow. Let's eat chocolates and look at this innovative way of using canned citrus juice. and this is some weird-looking thing. What is this? Let me explain in a while. Since we are discussing measures, let us discuss some interesting measures. Like what? A few of the interesting measures are: if you purchase pepper, for example, and if I were to ask you a question, do you measure excrement in the pepper that you purchase? Do you even expect mammal excreta to be part of pepper? Oh my God! If that is the case, what are the quality folks doing? Let me tell you this. according to us. FDA (Food and Drug Administration) One mg of EXCRETA per pound of pepper is acceptable. You cannot go and sue the pepper company. And I'm sure you have been to movie theaters, right? And whenever you go to watch a movie, what do you do in the breaks? You quickly grab some popcorn. Yeah, very interesting. Right? It is what we do most often than not. Excreta is measured in popcorn. Mammal excreta. One excreta pellet in popcorn is acceptable, according to the FDA. And for the chocolate lovers, let me tell you this. one rodent hair. When I say rodent, squirrel, mice, rat. Right? One rodent hair per 100 grammes of chocolate is acceptable. It's permitted, by the way. You cannot go through the chocolate company saying that. See, I found a rotten hair in this chocolate. You can't do that. And with canned orange juice, most people feel that the juice is of high quality. Yes, they are higher in quality. And have you ever consumed pulpy orange juice? There will be a lot of pulse. It tastes so natural. Right? Five Drosophila eggs, which are, by the way, posted here, Rosphila X, right? Five rosaphires for 250 ML of cancer juice are permitted. Oh, my God. What? Crap. Yes, it is permitted. And also, there are many interesting measures, right? There is something called a "micro century," which is nothing more than equal to 52 minutes. There's something called "fucking Oh, I didn't abuse anyone. I really mean it. If you do not believe me, let me write it down for you. And that is how they pronounce it, by the way. It's not my mistake. F-I-R-K-I-N. I'm not sure how you are going to pronounce this. I did not use anyone, by the way. Right. This is a dimension of mass, and this is equivalent to 90.40.833 cages, to be precise. And there is something called a nanoacre.It's not related to real estate. Nanoacre is, by the way, a unit of real estate, but on a VLSI chip, not on the ground. On a VLSI chip, it is equal to six square inches. There's something called donkey power, which is equal to 250 watts, as opposed to horse power, which is 745 watts. So you measure all these things. So, basically, you need to be very clear on what our measure would be. Right. CTQ. From there, you will have to come up with your measures.

3. Exercise on finding the CTQ from VOC, VOB

Alright. Let us do this quick exercise to identify what the CTQs could be. What the possible CtQs could be based on the voices of customers and businesses There will also be some doubts if they are not already clear. Let us look at the first one. Your customer or your business says, "Deliver me the product faster." What could the possible CTQ be? What could the possible CTQ be? Think aloud. We have examined numerous examples up to this point. It's delivery l now. It'sSo if your customer or business says "deliver me the product faster," you'll see that I'm going to measure delivery time from here on and I'll try to reduce the delivery time. A multiplex owner comes to you and says that he's nearly built a multiplex, but it is empty. Please help me. What could the possible CTQ be? Occupancy percentage. And you will say: Let me improve this metric. Response to the queries should be faster. What could the possible corresponding CTQ be? speedy response time. And you always want to reduce the response time. So there might be a few metrics for which you want to possibly reduce the value by implementing a Six Sigma project. There might be a few other metrics that you might end up improving as a result of implementing Six Sigma projects. Not a lot of people are visiting the mall. What would you do? Which metric would you look into? I would probably look into footfalls. Number of footfalls? Yes. That's a metric that I'll try to improve upon. Loan documents or loan documents were filled out incorrectly. What is happening here? Which metric of CTQ would you target? I'd probably target an error percentage or accuracy percentage. Right. I'll look into error percentages. I'll try to reduce this delivery. The pizza is hot. So which metric would have possibly looked into temperature? I'll ensure that the temperature is within a particular range. It should not be extremely hot simply because the customer requests that the pizza be delivered hot. It should be at a vertical temperature. If it's extremely hot and if it burns his tongue, then he's going to abuse you, if not directly. In his mind, he'll do that. Right. Don't do that. And especially if you're superstitious, don't do ight. Don't do that. A lot of warranty costs go into fixing products. What would you possibly look into? Warranty cost? I'll probably look into the cost of poor quality. I'll look into the cost of failure. cost of quality failure. That might be the metric for me. and try to reduce that operator. took a lot of time to address my query. Wait time. I'll try to reduce this wait time. We could not process loan documents within the time promised to the customer for resolution or processing time.Try to reduce this as well. Loan application forms submitted by loan officers have too many errors. probably try to reduce the tion forms sI'm pretty sure now you're quite comfortable with how to translate your voice of the customer or voice of business into CTQ, which is nothing but a metric. But remember one more thing. Here you need to look into two CTQs. One is called primary CTQ, and another one is secondary CTQ. What is a primary CTQ, and what is a secondary CTQ? Alright, let us take some example here. OK, deliver me the product faster. It has a delivery time. That is my primary CTQ. In the course of reducing my delivery time, it shouldn't have happened that I've hired ten additional resources. If I hire ten additional resources, I'm bringing about improvement. By consuming a lot of money, I'm increasing the cost. And this is not the objective of Six Sigma. We need to try to keep this cost constant. And by maintaining this cost constant, we have to try to reduce the delivery time. Or you might also want to decrease the cost while decreasing the delivery time. And now this cost is called a secondary CTQ. The side effect of making improvements tothe primary CTQ is your secondary CTQ. Think about this. There is something called ect of making improvementPeople who are barred must know this, right? Minoxidil is used in almost all the hair-growth medicines. It will help to reduce hair fall and increase hair growth. But primarily, minoxidil was invented to reduce high blood pressure. It was supposed to manage the blood pressure of human beings. And when people started taking this, they haveseen a side effect blessing in disguise. And that was excess hair growth. So that doesn't always happen, right? Always. You'll not be blessed. Sometimes it might have a negative impact. Adverse oesn'talwaysBy the way, viagra, which is used to cure sexually related problems, was also meant to address high blood pressure. But it found its roots in some other area, by the way. But see, these are the side effects. You need to counter those. You need to look into those. Side effects can be positive or negative. The examples have given a positive, but you might also end up with a negative.

4. Selecting Relevant Project

Alright, now the onus is on us to move onto step two and choose the relevant project. But even before selecting, you need to look into three or four key things. And the first thing is, what is the result that we want to achieve? Right. Does a project have a significant impact on customer satisfaction? If it's minuscule in nature or if it's not going to increase your happiness, do not do that. Think about this. If you order a Domino's Pizza, they're going to deliver it within 30 minutes. Otherwise, it's free of charge for you. If tomorrow Domino's comes and says that we have reduced the duration from 30 minutes to 29 minutes, would that impress you? And do I need to do a six month project to reduce the duration from 30 minutes to 29 minutes? Does it really make sense? Absolutely no. So don't do such projects. Look into high-impact projects. It needs to have a significant impact on customer satisfaction. Maybe if I reduce the duration of pizza delivery from 30 minutes to 15 minutes, maybe it's going to have a significant impact on my satisfaction levels. But it comes at a cost. This is an extremely important statement. Customer first. They are the highlight of your life. They are giving you their business. They are the very reason why you're in the market, and they spend a significant amount of time and effort on attaining good customer satisfaction. But you need to also look into whether this project strongly relates to your business goals or not. By reducing the delivery time of pizza from 30 minutes to 15 minutes, maybe it's going to increase customer satisfaction. But in order to reduce the time from 30 minutes to 15 minutes, maybe you will have to hire 20% or 30% more delivery boys. Now, that's going to eat away at your revenue. It is going to eat away at or increase your revenue, but it is going to eat away at your profits. Is that your business goal? No. So looking at your business goal as well, try to ensure that there's a win-win situation. Here, you increase customer satisfaction by ensuring that you also meet your business goals and, hence, your defence for this extremely strict and extremely tricky rule. Right. You need to have a proper balance. You need to satisfy both the customer and yourself to ensure that you do not run out of business, impact your profits, or take business away from your car center. All right. How much effort should I spend on a Six Sigma Greenville project? should not be more than six months. Right? three to six months maximum. Including everything, including the handover of the process to the process owner? Yeah. When I say handover of the process, it is handover of the improved process. A good project must be manageable. If not, why do you even want to get into that project? Prolonged projects are now a big no. They will ensure that the interest levels of the stakeholders are significantly reduced, and it will build frustrations among the team that is working with you, which is extremely dangerous. Don't do that. The team also runs the risk of disintegrating, so some projects should be kept at bay. What kind of projects do you not do? It should not be small-scale projects. You cannot say that I'm going to complete this project in a week, and it qualifies to be a Six Sigma project. Don't do that. Probably you can implement Lean Concepts, Kaizen, or Blitzkizen, which should be able to address this. Yep. because the improvements would be too small, and the customer or your business is not going to appreciate you for that, for the efforts that you're investing. And remember, Six Sigma involves a lot of statistics, a lot of data collection, and a lot of data analysis. Right. And do not try to solve the world's hunger. Don't say that. I'm going to increase the revenue of all the departments of my organization. I'm going to arrest the attrition rate of all the departments of my organizations. That would not happen. You should not pick up such a big project. be very cumbersome. All right? Yep. Do not pick up world hunger projects where the solution is beyond the control of the stakeholders with whom you're working. All right. What problem do I select? Right. Look at this diagram. It clearly explains that if you know the cost and if you know the solution is going to be simple, implement lean methodology. If you know the cause and you know that it's going to be complex, still implement Lean. You know what the problem is, just go fix it. If the cost is unknown, the solution mightbe simple, then still implement Lean only, andonly if you do not know the cost. And if you know that the solution will be complex, That is when you implement Six Sigma. Just because you're taking Six Sigma training doesn't mean you should go out and pick up some projects to force your learning. It's not going to give you benefits. You lose the situation.

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