Question

ASSIGNMENT-2

                                             DMAIC / Six-Sigma Project

In this assessment, the students are required to implement DMAIC / Six Sigma projects. Upon the completion of the projects, instructors should be able to test the students` understanding of major part of the course materials.

During the process of projects implementation, hypothetically for the assessment`s purposes, the picture your instructor as a chief executive officer of a company at any industry of your choice.

      In order to gain the CEO` approval for quality improvement project (Six Sigma) and compete for full project`s sponsorship, student is required to provide a detailed project information to convince the instructor – supposedly the (CEO) to choose and support your project.

Guidance for the project report:

The report must include the following:   

1. Product or Service Information:

Select an actual Product or Service from any local/international company that you would like to improve/change, and provide the following Information:

• The product or service general information such as name, features, value to customers..ect.
• Brief history about the chosen product or service (formation, sales, previous changes).

2. The necessity for change :

• The reasons behind the improvement decision, each group asked to present no less than two reasons why they think the change is important for their product /service (Leadership, Competitors Technological advances, Training requirements, Rules and regulations, Customer demands).

3. Define Stage ( Planning) :

• Define the project’s scope, goals, and objectives and its team members and sponsors ( Project charter )
• Define the current and the desired status, the project scheduling.
• Define the stakeholders affected by the project such as (employees, society, customers, stockholders, suppliers…etc)
• Identify the team you need and the members` functions that will help you throughout the project.
• What method you plan to use for defining the project (Work Breakdown Structure, Pareto Diagrams) and why?

4. Measure Stage:

• Define the new process inputs, actions and desired outputs. (Hint : Process flowchart can be used to visualize the process)
• Define measurement Systems Analysis tool, to illustrate use measurements scales such as Nominal , Ordinal , Interval , Ratio. In addition, explain the reason for use.

5. Analyze Stage:

• Discuss no less than two conditions that might hinder the project progression (process variation) using one of tools mentioned in chapter (15 - Analyze Stage).

• Describe the new value delivered to the customers upon the successful implementation of the project.

6. Improve / Design stage:

• Present no more than two condition that can be altered to make the desired change ( cost , operation, human resource).
• Discuss one to two techniques you plan to use to improve the efficiency of process such as lean tools, 5S …etc.

7. Control Stage:

• Identify two methods that the team can use to evaluate performance after the project completion.
• Document two to three learned lessons from the process ( This part could be connected to the overall project experience )

Answer 1

Company’s Information

A software company “ Brilliant Consultancy
Services (BCS) ” has many multiple clients. For
each client, the company sets Key Performance
Standards (KPS) such as ‘schedule adherence’ and ‘
critical defects’ before the start of a project.
“Firmware” is the biggest account (client) for BCS
whose e-learning contract requires maintenance of its
Learning Management System (LMS) for 5years. For
this contract, the BCS in agreement with Firmware,
has set ‘No schedule miss’ and ‘NO critical first pass
defect’ as KPS.

The Problem

During the first year review, BCS had with the
Firmware recently, the schedule adherence was found
to be 100% whereas the critical defects were found to
be 0.1%. Management understands that if the critical
defects are not reduced, Firmware can withdraw the
contract.
The company hires you as a Black Belt to reduce the
first pass defects from 0.1% to 0%. Apply Six Sigma
methodology to solve the problem and demonstrate
the solution with the tools used.

Terms

A critical defect in e- learning package is defined as a
defect which can cause any of the following:
1. Course not made as per the hardware and software
requirements laid by the client.
2. Course not getting launched on the LMS system.
Schedule Adherence is defined as the delivery of the course
1. As per the scheduled or re-scheduled date agreed upon
by the client
2. Upload the course onto the client server by 5:30pm IST
on the day of the upload.

Define:

Define:
Problem Statement:
The percentage of critical defects is 0.1% instead of 0%
The problem was observed during the client’s review for year 2004- 2005
result.
Impact of the problem is LOOSING the customer preventing new
business from Firmware
Goal Statement:
To reduce the critical defects for LMS contract for ‘Firmware’ from
0.1% to 0%
Team Selection: The team includes following members
Project Management -Manager
Quality Assurance- Reviewer
Development and Deployment- Subject matter expert
Financial representative

Financial Benefits:
PONC or Price of non- conformance for each critical defect as
calculated = 500 USD.
Defects in a year = 30
Savings from 0.1% critical defects = 30 * 500 = 15K USD
Expected order of 1 lac USD in an year giving 65K USD as
Gross Margin.

Measure:

Performance Standard Matrix
Reduce Critical Defects for LMS Contract
– Item: Defect report
– Metric: No. of critical defects/ delivery review
– Opportunity: 2 per delivery
– Data type: Discrete- Defect
– Standard for judgment:
As per the ‘Development Standards and Guidelines’ agreed upon
by the client
– Measurement System: Tracking client review by SAP- based
‘Defect Tracker’
• Frequency: Done by QA head after every client review
• Gage: Manually

Measure:
Data Collection
• QA team collects the data from the ‘Defect Tracker’
• QA head analyzes the data and shares with the Project
Manager
• Data is based on population and not on sampling

Measure :

Validate Measurement System
Logical Validation :
The client inputs defect data into ‘Defect Tracker’. The data
is tracked by the QA team who in turn send it to the QA
head for analyses. After the data is analyzed, the QA shares
it with the Project manager who authenticates the data.
Hence, it needs no further validation.

Measure :

Establish Baseline
DPMO
Defect per million opportunities :
No. of defects = 435
No of deliveries = 3980
No of opportunities = 2 / delivery = 2*3980 = 7960
DPMO = 435*1,000,000 / 7960 = 54648.24 ppm

Measure :

Establish Baseline
Calculating Sigma level* :
Zlt = 2.54
Zst = 2.54 + 1.5 = 4.04
Zent > 6 (February month shows zero critical defects)
Zgoal > 6 (goal is to achieve zero critical defects)

Measure:

List the potential Xs
X1 : Mismatch of software application with that of
client’s
X2 : GUI shell made in Flash. Version used not
compatible with client's.
X3 : Heavy files incompatible with 64MB RAM
X4 : Instructions on using the course not made
available
X5 : Course not tested using Dial- up connection
X6 : Skill set of development team inconsistent

Analyze : Hypothesis Testing

Similar analyses was done for each these factors.
All were found to be potential causes.
X2 : GUI shell made in Flash. Version used not
compatible with client's.
X3 : Heavy files incompatible with 64MB RAM
X4 : Instructions on using the course not made
available
X5 : Course not tested using Dial- up connection
X6 : Skill set of development team inconsistent

Analyze:

List the Vital Xs
X1 : Mismatch of software application with that of
client’s
X2 : GUI shell made in Flash. Version used not
compatible with client's.
X3 : Heavy files incompatible with 64MB RAM
X4 : Instructions on using the course not made
available
X5 : Course not tested using Dial- up connection
X6 : Skill set of development team inconsistent

Improve:

X4 : Instructions on using the course not made available
Before :
Assumption was made that the client would be able to
launch and navigate the course
After :
A separate module ‘How to run the course’ has been added
in the HELP files of the LMS.

Improve:

X5 : Course not tested using Dial- up connection
Before :
Course was tested only on the Leased internet lines
(broadband connection) available in the organization.
After :
A dial- up connection was set up and all courses were
tested using this connection. The courses were released to
the client only after the QA head signed the delivery form.

X6 : Skill set of development team inconsistent
Before :
The newly hired employees were directly inducted into the team to
start with development.
After :
Mandatory trainings were arranged for the newly hired employees and
only after their successful completion of the training, they were
inducted to the development team.
Control Method : Tracking by PM in connivance with training department

All the improvements were Executed and
the processes were Standardized
• Approvals were taken
• Training was imparted

Control:

Use Mistake-proofing/ Visual
Standards for process control
Mistake- Proofing:
Approval form stating that all the standards and
guidelines as per the client have been adhered to and
tested, was signed by the QA head before the delivery
to the client.
Used for X1, X2 and X3 factors

Control:

X4 : Instructions on using the course not made
available
Control method : With every delivery, the Project
Manager should request the client to refer to the files
‘How to run the course’ in case of a problem.
Responsibility : Project Manager

Control:

X5 : Course not tested using Dial- up connection
Control- Regular audit by Independent Audit Team once/
month-
Responsibility : PM and QA head

X6 : Skill set of development team inconsistent
Control Method : Tracking by PM in connivance with
training department

Final Steps:

The final steps were executed in the Process
• Process Instructions
• Impart Training
• Preventive Maintenance
• Documentation
• Translation