lessons in six sigma

LessonsLessons
LessonsLessons
Lessons
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inin
in
Six SigmaSix Sigma
Six SigmaSix Sigma
Six Sigma

Debashis SarkarDebashis Sarkar
Debashis SarkarDebashis Sarkar
Debashis Sarkar
72 Must-know T72 Must-know T
72 Must-know T72 Must-know T
72 Must-know T
ruthsruths
ruthsruths
ruths
for Managersfor Managers
for Managersfor Managers
for Managers
Response BooksResponse Books
Response BooksResponse Books
Response Books
A division of Sage Publications
New Delhi
l
Thousand Oaks
l

London
LessonsLessons
LessonsLessons
Lessons
inin
inin
in
Six SigmaSix Sigma
Six SigmaSix Sigma
Six Sigma
Copyright © Debashis Sarkar, 2004
All rights reserved. No part of this book may be reproduced or
utilized in any form or by any means, electronic or mechanical,
including photocopying, recording or by any information storage
or retrieval system, without permission in writing from the
publisher.
First published in 2004 by
Response Books
A division of Sage Publications India Pvt Ltd
B-42, Panchsheel Enclave
New Delhi 110 017
Sage Publications Inc Sage Publications Ltd
2455 Teller Road 1 Oliver’s Yard
Thousand Oaks, 55 City Road
California 91320 London EC1Y 1SP
Published by Tejeshwar Singh for Response Books, typeset in 10.5
pts Palatino by Innovative Processors, New Delhi, and printed at
Chaman Enterprises, New Delhi.
Library of Congress Cataloging-in-Publication Data
Sarkar, Debashis.

Lessons in Six Sigma: 72 must-know truths for managers/
Debashis Sarkar.
p. cm.
Includes index.
1. Total quality management. 2. Quality circles. 3. Six sigma
(Quality control standard) 4. Project management—Qual-
ity control. 5. Industrial management. I. Title.
HD62.15.S26 2004 658.4¢013—dc22 2004003805
Six Sigma is a registered trademark of Motorola, Inc.
ISBN: 0-7619–9843–8 (US-PB) 81–7829–367–6 (India-PB)
Production Team: Roshni Basu, R.A.M. Brown and
Santosh Rawat
In the memory of my late father
Shri. Subhendu Sarkar
Who led a life of Six Sigma Excellence.
This book is dedicated to the following people
who worked silently to make me a better
human being
Fr Joseph Lombart
Dr R K Patel
Mr Ashok Mittal

Contents
Preface xvii
Lesson 1
Six Sigma is a structured problem-solving
methodology which is a powerful lever
for business improvement 1
Lesson 2
It’s the CEO and only the CEO who can make

Six Sigma successful in an organization 5
Lesson 3
Take the members of the senior management
team on board with a champions workshop 8
Lesson 4
Precede Six Sigma deployment with an
organizational assessment 11
Lesson 5
Create a deployment platoon for the execution
of Six Sigma projects 14
Lesson 6
The responsibility for the success of Six Sigma
projects lies with the champions 18
Lesson 7
Improvement with Six Sigma entails finding
and working with critical X’s in a process 21
Lesson 8
Build solid infrastructure pillars to support
Six Sigma in the organization 24
Lesson 9
Appoint a marketing manager for selling
and marketing Six Sigma as a product to
the employees of the company 28
Lesson 10
The quality council should drive Six Sigma
Implementation across the organization 32
Lesson 11
Bolster Six Sigma projects with a solid
Review Framework 35
Lesson 12

Becoming a master Black Belt requires
a practical demonstration of adeptness
in coaching, teaching, facilitation,
consulting and mentoring 38
Lesson 13
When hiring a Consultant for Six Sigma
deployment, ensure that all laid down
criteria are met 42
Lesson 14
Beware of the Consultant who gives a
Proposal to improve an Organizational
viii LESSONS IN SIX SIGMA
Business Process all by itself, without
the involvement of employees 46
Lesson 15
Continuously evaluate the effectiveness
of Six Sigma teams 49
Lesson 16
The composition of the Six Sigma project
team is critical to its success 52
Lesson 17
During the First Year of Six Sigma
implementation, focus of deployment
should be on Value and not Volume 56
Lesson 18
Appoint a Dashboard Manager who
is entrusted with the responsibility
of tracking process metrics 59
Lesson 19
Six sigma deployment should precede

with the identification of Core Business
Processes 62
Lesson 20
Do not take up Improvement Projects
in the cafeteria during the early days
of Six Sigma journey 65
Lesson 21
Black Belts should not carry out small
improvement projects (read: Green Belt
projects) in the garb of those being Black
Belt projects 68
CONTENTS ix
Lesson 22
The project charter is a tool to manage,
control and approve Six Sigma projects 70
Lesson 23
Scripting the problem statement right
is vital to a Six Sigma project 72
Lesson 24
An effective Six Sigma deployment requires
a holistic mechanism to capture the voice
of the customers 75
Lesson 25
It is important to focus on the Right Measure
to ascertain the efficacy of a process 79
Lesson 26
Together with Sigma levels keep an eye
on the class of the process 82
Lesson 27
While executing DMAIC projects do not

take short cuts. Follow all the steps 86
Lesson 28
It is imperative that all Six Sigma projects
provide Real Time Savings 90
Lesson 29
Just by calculating the potential benefits in the
beginning and accrual benefits at the end of
a project, will not get the ‘wow’ from either
the CFD or his team members 93
x LESSONS IN SIX SIGMA
Lesson 30
Six Sigma methodology is just not for
manufacturing organizations. It can be
deployed in service organizations as well 96
Lesson 31
Be on top of meetings. Let them be enablers
to project improvements 99
Lesson 32
Before setting out to do a Six Sigma project
ensure that it is scoped well 103
Lesson 33
The organization should have an effective
methodology to ensure that there is a
continuous flow of ideas 106
Lesson 34
All improvement ideas need not qualify
as candidates for Six Sigma project 110
Lesson 35
Creating the right organizational structure
is essential for Six Sigma deployment 112

Lesson 36
Before determining the sample size and
sampling plan, ascertain if the data for
measurement is from a moving process
or is it from a stagnant population 115
Lesson 37
Understand the key terms and the steps
involved in DPMO calculation 117
CONTENTS xi
Lesson 38
DPMO is a good concept but be alert
about the confusions it can create. Mindlessly
increasing the Opportunity Levels can
Increase the Sigma Levels 123
Lesson 39
Do not be satisfied merely with Yields,
commence with the calculation of a
First Pass Yield 127
Lesson 40
You can unfurl the non-value added
activities in your process from DPU
levels by a measurement called the
Rolled Throughput Yield 129
Lesson 41
Defects in a Six Sigma process without
a shift is 2 Defects Per Billion and not 3.4
Defects Per Million opportunities 133
Lesson 42
Get a sense of whether Six Sigma is delivering
value through the measurement of Quality

Costs 136
Lesson 43
When a process capability is reported,
ascertain if it is a long-term or short-term
capability 140
Lesson 44
People at the top should have a gut feel
of the happenings at Ground Zero 143
xii LESSONS IN SIX SIGMA
Lesson 45
As a Six Sigma change agent, master the art
of conflict resolution 146
Lesson 46
A defect is one which does not meet
the customer needs 148
Lesson 47
Do not wait for problems to occur to initiate
improvements through Six Sigma projects.
Proactively take actions when precursors
and evidences to a problem are seen 150
Lesson 48
Look at processes end-to-end while taking
up projects for improvement 153
Lesson 49
Do not launch Six Sigma with the sole idea
of saving cost for your organization 156
Lesson 50
Select the best performers to take up
Six Sigma projects 158
Lesson 51

Be extremely meticulous about the Book of
Knowledge being followed by the trainers to
prepare your Black Belts or Green Belts 161
Lesson 52
ISO 9001:2000 Quality Management System
serves as an excellent platform for Six Sigma
deployment 165
CONTENTS xiii
Lesson 53
Banish waste by enmeshing Lean Thinking
with Six Sigma methodology 168
Lesson 54
Appoint a Chief Process Facilitator for all
Six Sigma team processes in your company 171
Lesson 55
While focusing on primary metrics
do not forget to keep the secondary
metrics on the radar 174
Lesson 56
Six Sigma deployment may be a mirage
for small sized companies but there are
ways to go about it 177
Lesson 57
Do not get perturbed if data points
in your Six Sigma project have a
non-normal behaviour 181
Lesson 58
Deployment of Six Sigma does not
come cheap. Keep this in mind before
setting out on a Six Sigma journey 183

Lesson 59
Avoid pre-conceived solutions from getting
Force-fitted into a Six Sigma methodology
without any data analysis 187
xiv LESSONS IN SIX SIGMA
Lesson 60
The Human Resource Department
cannot be a sleeping partner
in Six Sigma deployment 190
Lesson 61
Six Sigma framework does not act
at cross purposes in an organization’s
journey towards achieving business
excellence 193
Lesson 62
Once processes are improved using Six Sigma
methodology, it is important to take an all
encompassing approach to ensure that the
improvements are sustained 197
Lesson 63
Process audits are an integral part
of Six Sigma deployment 200
Lesson 64
Use Brown Bags to make your employees
refresh their knowledge on Six Sigma tools and
techniques 203
Lesson 65
Bolster your Six Sigma journey with a Solid
Rewards and Recognition Scheme 206
Lesson 66

Remember to work on mistake-proofing when
implementing Six Sigma solutions 214
CONTENTS xv
Lesson 67
Be ruthless if Six Sigma objectives
are not met 217
Lesson 68
In case control charts are not being used
by process team members, replace it
with pre-control charts 220
Lesson 69
Six Sigma is not an off-the-shelf solution
to organizational pains 223
Lesson 70
Statistical thinking should be a way
of life in a company working towards
Six Sigma deployment 226
Lesson 71
Six Sigma project team leaders need
to have focus, good relationships,
communication skills, ingenuity and
excellent project management skills
to translate the charter into results 229
Lesson 72
Do not be complacent if processes have
reached at Six Sigma levels 232
Index 234
xvi LESSONS IN SIX SIGMA
Preface
Six Sigma is probably one of the best methodologies to

pervade the world of improvements. What differenti-
ates Six Sigma from other quality methodologies is its
measurements orientation, rigorous training scheme,
process centricity and stakeholder involvement. The
tools in Six Sigma are not new but its direct linkage to
business objectives and priorities, makes it a powerful
strategy in business.
However there is a word of caution…….
Six Sigma is a great methodology but often fails to
deliver sustained benefits when we forget the small little
things that make a large difference. This book unfurls
some of those little things which are often lost and
missed during Six Sigma implementation. The Lessons
are essentially learnings captured during Six Sigma
deployment. The lessons may be ‘common’ and
mundane but are quite ‘uncommon’ in workplaces.
As far as possible the book has been kept bereft of
jargons so that it can be understood by all and just not
Six Sigma professionals.
A book like this does not happen easily without the
help of people who work and support silently behind
the scenes.
l
Chapal Mehra (Managing Editor, Response) and
Sunanda Ghosh (Head Marketing-Sage) for
always acceding to my unreasonable requests.
This is not my first book with Sage but I can just
say its always a delight working with the team at
Sage.
l

My mother, my wife Sudeshna and my little one
Trisha who have borne with my selfish pursuits
which is often at the cost of spending time with
them
Please note that the lessons in this book are
as observed/experienced by me as a student of
quality and Six Sigma. It is quite possible that you
may not agree with some of them. Should you
have any feedback please feel free to write to me at

Debashis Sarkar
xviii LESSONS IN SIX SIGMA
DEBASHIS SARKAR 1
Lesson 1
Six Sigma is a structured problem-solving
methodology which is a powerful lever for busi-
ness improvement
Six Sigma is a data driven structured problem-solving
methodology for solving chronic issues facing a
business. It is a breakthrough management process that
is used to improve a company’s performance by
variation reduction. The method encompasses breaking
down the customer’s requirements into steps to
pinpoint pains in a process. This results in the reduction
of defects and sustenance of process improvement.
The Six Sigma methodology essentially has two
elements which comprises the voice of the customer
and voice of process. It essentially entails reducing the
gap between the two voices and ensuring that they both
match. What differentiates Six Sigma from other quality

methodologies is that it can be used to solve key
business pains.
For the first time we have a methodology which can
help quality professionals to add directly to the top line
2 LESSONS IN SIX SIGMA
or bottom line. Earlier quality professionals always
faced a struggle because the impact of their work was
often not felt in the company’s balance sheet. Six Sigma
has changed all of this. This methodology can be
leveraged to address issues which can be used in any
part of the business. Traditionally quality tools have
been used for solving only quality issues but this tool
facilitates the resolution of pains beyond the domain
of quality. Some areas where Six Sigma projects can be
very effectively used are: Revenue Generation, Cost
Avoidance, Productivity Improvement, Customer
Satisfaction, Customer Retention and so on. This is just
a partial list and can be further increased.
Six Sigma gives an excellent project management
framework wherein all power tools are packaged in
such a manner that it helps in providing the best
solution to a problem. Tools used are not new but the
way they have been structured gives its power.
Six Sigma uses a handful of powerful tools of
statistics instead of getting lost in over 400 tools of Total
Quality Management (TQM). The beauty of the method
is in its ability to use these tools in a model known as
DMAIC (Define-Measure-Analyze-Improve-Control).
Also, Six Sigma has added a component of financial
accountability and demands a strong focus on

measurement to constantly monitor the results of the
improved state.
The Six Sigma framework has also taken quality from
the domain of quality professionals to others in the
organization. This is probably the best thing to happen.
Earlier there was always a struggle to ensure that
quality seeps deep and wide in organizations. Despite
DEBASHIS SARKAR 3
all the efforts and various initiatives, progress was not
as expected and it only ended with the jargon ‘quality
is everyone’s business’.
Six Sigma puts a stop to gut-based solutions and
looks at all variables affecting a process. The solutions
are validated statistically so that the chances of imple-
menting a wrong solution goes down. It can be used
for both service and manufacturing organizations.
Earlier all quality tools had been manufacturing centric
but now this power packed method has been success-
fully used in service companies.
What makes Six Sigma different is that it forces
individuals to define customer satisfaction measures
and use teams to improve it. So it uses customer-focused
goals and measurements and drives continuous
improvement at all levels of the enterprise. When
effectively implemented, the Six Sigma technique can
help to ensure that both internal and external customers
voices are heard and efforts are made towards their
improvement.
The power of Six Sigma can be leveraged by setting
attainable short-term goals while striving for long range

objectives. It is imperative that the projects support the
company and division goals that flow from top-level
company objectives. For making Six Sigma a success, it
should be treated as a business strategy and not just
another quality programme. Remember, the ideal
project should have a connection to strategic objectives,
should be recognized as being important to the
company, can be completed within a reasonable time
period, has the support of the management and has an
accurate evaluation framework to ascertain its
effectiveness.
4 LESSONS IN SIX SIGMA
Let me caution that Six Sigma is not a panacea for all
ills plaguing a company. If there are events outside the
organization’s control, Six Sigma cannot be of any
benefit. For example, an economic crisis affecting the
performance of a company cannot be solved by Six
Sigma.
It has been seen that with the change in the leadership
of a company, the Six Sigma implementation can go to
docks. It shall stay till there are leaders like Jack Welch
who give it the required thrust and understand its
power.
Six Sigma Takeaway
Six Sigma as a business strategy increases custo-
mer responsiveness, builds customer relation-
ships, improves organizational resilience to
respond to market conditions and aligns people
and processes behind agreed objectives.
DEBASHIS SARKAR 5

Lesson 2
Its the CEO and only the CEO who can make
Six Sigma successful in an organization
Six Sigma should not be launched if the CEO does not
have the time for it or does not think it to be important.
Six Sigma should also not be launched because the CEO
feels it is the latest from the quality stable. It should
only be launched when the CEO is convinced that it is
the methodology that is required for his/her company.
He/she should have a strong rationale on how Six
Sigma can be a contributor to specific organizational
objectives.
I strongly believe that it’s only the CEO who can
make a difference to a Six Sigma implementation.
Internal experts such as Black Belts and Green Belts may
implement Six Sigma projects, but it is the CEO who
owns them.
Whether it’s Bob Galvin at Motorola or Jack Welch
at GE or Larry Bossidy at Allied Signal, it’s their
personal commitment and belief in Six Sigma that made
the difference. These leaders have given a new
6 LESSONS IN SIX SIGMA
definition to quality and proved that it can be a lever
for business improvement.
The CEO cannot just sign the cheque and take a back
seat. He or she should understand what Six Sigma is
all about and how it drives improvement to the
organization. He or she has to provide leadership and
create a vision, provide necessary resources, give time,
review and communicate to all that Six Sigma is the

improvement engine that will be the DNA of the
organization. It is his/her responsibility to ensure that
everyone gets involved in the implementation effort.
The CEO has to provide visible support to Six Sigma.
Remember, Six Sigma quality is more of a cultural
imperative that changes the way decisions are made.
The CEO has to walk the talk and manifest that he or
she lives by the Six Sigma framework day in and day
out. The culture that is built ultimately converts good
strategy into effective execution.
So what are the specific things a CEO should do to
make Six Sigma successful:
l
Understand what Six Sigma is all about and
how it can be enmeshed with the business
strategy.
l
Create a shared vision that supports Six Sigma.
l
Be the biggest messiah and evangelist of Six
Sigma in the company.
l
Establish clear long-term

objectives

at

a business
level wherein Six Sigma methodology can be

leveraged (as 10X improvement in quality
levels).