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)

Approach to create the Key Performance Indicators (KPIs)

  1. Start with Problem Statement – Identify what the improvement objectives that the Six Sigma teams set off to accomplish (e.g., reduce costs, improve customer satisfaction, shorten lead times).
  2. Translate Problem Statement into Critical-to-Quality (CTQ) Requirements – CTQs are measurable characteristics that are essential for customer satisfaction.
  3. Define Key Metric Categories
    • Quality (Defects & Errors)
      • Defects per Million Opportunities (DPMO)
      • Cost of Poor Quality (COPQ)
      • First Pass Yield (FPY)
    • Efficiency (Cycle Time & Productivity)
      • Process cycle time
      • Throughput rate
      • On-time delivery %
    • Customer Satisfaction
      • Net Promoter Score (NPS)
      • Customer complaints per unit/transaction
      • Service level agreement (SLA) adherence
    • Financial Impact
      • Savings from defect reduction
      • Rework/return costs
      • ROI on Six Sigma projects
  4. Define the KPI Formula & Measurement
    • Every KPI should have:
      • Definition (what exactly is measured)
      • Formula (how it’s calculated)
      • Data source (where numbers come from)
      • Target/benchmark (what “good” looks like)
      • Example KPI:
        • Name: Defects Per Million Opportunities (DPMO)
        • Formula: (Total Defects ÷ (Units × Opportunities per Unit)) × 1,000,000
        • Target: < 3.4 DPMO (Six Sigma standard)
  5. Review & Adjust – KPIs should evolve as processes improve. Regularly review whether they still reflect business goals.

 

Quick Examples of Six Sigma KPIs

  • DPMO = < 50
  • Customer complaints reduced by 30% in 6 months
  • First Pass Yield > 95%
  • Cycle time reduced from 10 days to 7 days
  • COPQ reduced by $200K annually

 

Sample KPIs tracking list

KPI NameDefinitionFormulaTargetControl LimitsFrequencyData SourceOwner
Defects Per Million Opportunities (DPMO)Measures process defects(Defects ÷ (Units × Opportunities)) × 1,000,000< 100UCL = 150, LCL = 50MonthlyQuality systemQA Manager
Cycle TimeAvg. time from order to delivery(Delivery Date – Order Date)≤ 7 daysUCL = 8, LCL = 5WeeklyERP systemProcess Owner
Preventive Maintenance Compliance% of planned maintenance completed(Completed ÷ Planned) × 100≥ 95%UCL = 100%, LCL = 90%WeeklyMaintenance logsMaintenance Lead
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