Course Content
Define
Identify the problem or process that needs improvement, set project goals, and outline the scope.
0/10
Six Sigma Management at Corporate Level
Six Sigma Project Team Structure
Create team roles and responsibilities
Create a Problem Statement
Create the SIPOC process map
What is CTQ (Critical to Quality)
Create CTQ Tree
Creating a Project Charter
Stakeholder Analysis
Outcome expected after the Define Stage
Measure
Collect data to establish baselines, understand current performance, and quantify the problem. For example, measuring the average turnaround time for policy renewals.
0/4
FMEA (Failure Modes and Effect Analysis) concept
Data collection methods
Introduction to data sampling
Use of Run chart for analysis
Analyze
Examine the data to identify root causes of inefficiencies or risks. This might involve analyzing claims data to uncover bottlenecks or sources of errors.
0/12
5 Whys
Root cause analysis with Fishbone Diagram
Lean 7 Wastes concept
Value chain mapping with Value Stream map
What is a process
Components of process
Process Mapping with Swimlane diagram
Process redesign principles
80/20 analysis with Pareto Diagram
Statistical analysis with Box Plot
Hypothesis Testing
Correlation and Regression Analysis
Improve
Develop and implement solutions to address root causes. For example, streamlining workflows or introducing new digital tools to reduce manual errors.
0/4
Solution Selection Matrix
Cost Benefit Analysis
Risk Assessment
Implementation Planning
Control
Put controls in place to sustain improvements, such as regular monitoring, updated procedures, or dashboards for ongoing performance tracking.
0/4
Create Control Plan
Create Key Performance Indicator (KPI)
Prepare the Process and User Guides
Handover to Process Owner
Six Sigma DMAIC (Define, Measure, Analyze, Improve, Control)

Pareto Principle

Pareto Principle or 80/20 rule says that 20% of the causes lead to 80% of the result. It is a powerful rule that can be applied to problems encountered in work scenarios.

By focusing on the 20% of the root causes, it would potentially result in resolving 80% of the problems. The Pareto diagram would be a good starting point for Six Sigma team to zoom into the the most likely places where problem lies. And by using the other Six Sigma tools like 5 Why’s or Fishbone diagram, the teams would potentially be able to “drill down” to the root causes of the problem

 

Pareto Diagram

The Pareto Diagram can be easily created with the Microsoft Excel. In the example below, a company would like to find out the key products that they have sold for a given period of time.

Product NameNo. of unit Sold
A3890
B2111
C4034
D211
E478
F49
G567
H945

To generate the Pareto Diagram,

  1. Input the Product Name and No. of unit Sold as 2 separate columns in the excel spreadsheet and key in the data accordingly
  2.  In the “Insert” tab of the Excel, select the “Histogram” option and click on the second diagram type.
  3. The Pareto diagram as shown above will be displayed

Pareto Diagram function in Excel

 

 

How to interpret the Pareto Diagram

In the example above, if we trace the point where orange line is at 80% in the diagram, we would find that Product C and Product A is residing at the left side of the point. What it means is that Product C and Product A make up 80% of the sales, and this is very handle information for the analysis. From the result, the Six Sigma team may continue to ask why Product C and Product A are selling well and why the others are not.

 

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