Six Sigma White Belt

1. Course Introduction: You must have heard the term Sik Sigma, but do you want to know what Six Sigma is all about? Are you looking for an end to end Six Sigma white belt training that provides you an in depth understanding of being a well trained professional white belt? Do you want hands on expertise for the different tools used by a white belt to help improve your business process? If your answer is yes to these questions, you have come to the right place. Six Sigma White belt is the first and primary level of your professional Six Sigma journey. A white belt is an individual who understands what is quality, has complete awareness of Six Sigma, Lean and Kais and has expertise in using the seven basic tools of quality. A six Sigma white belt does not execute standalone projects. However, this six Sigma level does play a critical role in an organization's process improvement journey. I personally like to call White beds the spokes of a wheel. Without the spokes, the wheel will not move. So if you're looking to understand what a six Sigma white belt is all about, this course will exactly deliver that to you. You start your course journey by understanding what is quality. After that, you understand what is Six Sigma, the different definitions of Six Sigma, what are the six Sigma roles and responsibilities? What is a Six Sigma DMC model, and you also learn what is Len and Kaiser. You will then get hangs on expertise on the seven basic tools of quality. These seven tools will help you perform your process improvement job with complete ease as a white bed. These seven quality tools are fish born diagram, check sheets, control charts, histogram, Pareto chart, scatter diagram and stratification. I have simplified the understanding of these seven quality tools into easily digestible content. Here, you will first understand what the specific quality tool is all about, and you then learn the steps to practice this tool using Excel or PowerPoint. This course is designed to enable you to perform the white belt role with complete expertise. I have kept nothing back in sharing my knowledge and hands on expertise of Sik Sigma, and I'm sure you will find this course an absolute value add to your resume and career. 2. Introduction to Quality: Imagine how unsafe the world would be. If the doctor starts handling you rather than curing you, like how a doctor cures a patient, rather than handling the patient, we solve problems for our customers more than just handling them. Quality is more than just being a metric or a jargon. It is the very purpose of the existence of an organization. For a customer, quality means resolution of his problems, getting service on time and getting solution correct at the first time. Okay. Let us now understand the different definitions of quality. Joseph M Juran, one of the influential quality guru defined quality as fitness for use. Those product features which meet the needs of customers and thereby provide product satisfaction. It is all about freedom from deficiencies. Doctor W Edwards Deming promoted the Shoe hart cycle. That is, plan, do, check, and act. According to him, quality is defined from the customer's point of view as anything that enhances their satisfaction. American Society for quality defines quality as the totality of features and the characteristics of a product or service that bear on its ability to satisfy stated or implied needs. In simple terms, quality is derived by meeting expectations of your customers. There are four activities that make this happen. First, you understand customer requirements. Second, you model and design your products and services such that they satisfy those identified customer requirements. Third, you develop business processes that are proficient and have the ability to produce those products and services. Finally, you manage and regulate those business processes, so they always deliver to their abilities. 3. History of Quality: Managers and business owners in the past over the centuries, have been innovating different ways and means to ensure their organization is in business. They have been identifying different ways to ensure a regular stream of customers keeps coming their way. Whether through various forms of advertisements or word of mouth or sponsorship or referral programs, business owners have always found suitable ways to get to their customers. But change is the only constant through all these centuries. The feature that is considered exciting today will become the norm tomorrow. For example, the touch screen in smartphones was considered a brilliant feature until a few years ago. However, it is considered a common feature today. Every organization has to regularly find new ways to satisfy these new and exciting needs and wants of their customers. Whenever a product or service is developed, the producers identify the existing standards and design their products to meet those standards. This practice of setting standards is carried out for several centuries. They build the trades in the past on these grounds. Frederick Taylor and Henry Ford developed several ideas and techniques that enhanced the speed of production processes. These included the classic division of work methods during the mid 1800s to the early 1900s. Given these new methods of doing business, the quality control department was created. The focus of this department was to ensure that standards were established and maintained so that customers would be satisfied. In many organizations, however, this also created a separation of tasks. Many people in organizations came to think of the responsibility for satisfying customers as only in the hands of the people in the quality control groups. Idally, the responsibility for satisfying customers was in the hands of the people who actually did the work of making the product or providing the service. Many organizations still struggle with customer satisfaction. Walter Suhart, a brilliant statistician who worked for Bell Labs, devised a unique technique in the 1920s to monitor business processes. This technique identified if a business process acted predictably or became unstable causing special causes that affected the performance. This technique was in the form of a line chart that became known as the control charts. Further, in 1979, auro Ishikawa developed quality circles. Quality circles are also known as quality improvement or self improvement study groups. They consist of ten or fewer employees and managers and are focused on improving processes. The concept originated in Japan. Statistical Process Control was another technique developed in the mid 1980s. It involves applying several statistical techniques to control the process performance. The other name for statistical process control is statistical quality control. The year 1987 witnessed the institution of the ISO 9,000 standards. ISO stands for International Organization for standardization. ISO 9,000 is a set of international standards on quality management and quality assurance. It was developed to help companies effectively document the quality system elements. Implementation of these elements help companies maintain an efficient quality system. Si Sigma was then established 1985-1988. Lean manufacturing came to life in early 2000. You will be going through more details on Sik Sigma and lean manufacturing in subsequent lectures. 4. Six Sigma - An Introduction: SiC Sigma is a business process improvement methodology. It is the only structured step by step improvement method that solves any business problem. It is also termed a disciplined methodology. That is, because the processes which embrace Sik Sigma need to be disciplined in ensuring its practices, policies and procedures are followed strictly. This discipline allows consistency in the flow of business operations and thus facilitates effective root cause identification. The other reason that Sik Sigma is widely accepted is that it directly impacts the bottom line, saving high costs for your organization. Sik Sigma helps identify the root causes and eliminates them, allowing the additional cost factors of repair, rework, customer dissatisfaction, others to disappear completely. This is the prima facie reason that so many organizations have realized that their organization gets complete control over the cost aspect when Sik Sigma is fully adapted. Si Sigma ensures that you make use of your manpower and intellectual resources fully. These resources execute, identified process improvement projects that have an organization or business process wide importance. And these projects, when completed, have a direct and positive impact on the organization's profit and loss account. Sik Sigma is a data driven methodology. It ensures that managers and employees who drive Six Sigma projects are trained in analyzing data and use statistical methods to get to the root causes. Employees at all levels are involved in different levels of statistical training. For example, white belts receive training on the seven basic tools of quality. Yellow belt receive view of the DeMac approach of Sik Sigma. Green Belts receive a thoroughly detailed understanding of Six Sigma project execution and statistical training. Black Belts have a complete understanding of data analysis using graphical and statistical methods, and Master Black Belts are experts in all aspects of process improvements. The step by step process of the Six Sigma methodology follows the DeMac approach. DeMac stands for the define measure, analyze, improve and control phases of any project. Some organizations view Six Sigma as a philosophy. This view outlines that any business process has inputs and outputs. It further states that when you focus on managing the inputs, the outputs are bound to come. The input output relationship is generally expressed as y is equal to function of x. Si Sigma is also known as a combination of process improvement tools. These tools can be histogram, par chart, Pi chart, control charts, SPOC, project charter, parametric and non parametric statistical tests to name a few. I keep saying that Sik Sigma is a process improvement methodology. This methodology involves using the DeMac approach for solving business problems. Each phase of the DeMac approach involves the specific steps that a process improvement expert follows. For example, it begins by understanding customer requirements and ends with improving the business to fulfill those requirements. Now, you are going through this lean sick Sigma white belt course. If any layman asks you what really is Sik Sigma, what will be your answer? All of the above are theoretical textbook definitions of Six Sigma. But you're going through a training that is conducted by me, so you have to be unique. Hence, I will share with you what it means to use the term Sik Sigma. To any layman, you can say that a process that operates at Six Sigma level of performance produces only 3.4 defects in 1 million opportunities. That's it. 5. Six Sigma Roles: Six Sigma project is always a team effort. Multiple individuals play different roles in any Six Sigma project. Let us now understand those roles. Champion. The champion is typically an upper level manager. His responsibilities include allocation of resources for projects. Determine project selection criteria, Interact with senior management, remove barriers hindering the success of the project, approve completed projects, implement change. Master Black belt. Master Black belts are individuals trained in six Sigma methodologies, statistical tools, basic financial tools, change management, risk assessment, project management, executive communication. They are well experienced in teaching, coaching and mentoring black belts and green belts. This is always a full time position. Black belt. Black belts are individuals trained in Six Sigma methodologies, statistical tools, basic financial tools, change management, risk assessment, project management, and well experienced in managing black belt projects. This is always a full time position. Green belt. Green belts are individuals trained in Six Sigma methodologies, basic statistical tools, and process improvement techniques. This is typically a part time position, and some organizations make this part of an existing job responsibility. Yellow belt. A yellow belt has basic knowledge of Six Sigma is often responsible for running smaller process improvement projects has expertise on using the seven basic tools of quality is generally a part time role and participates on a green belt project. White belt. White belts are selected by either the black belt or the green belt and have an awareness of the Six Sigma methodology. They are trained on the seven basic tools of quality and process improvement techniques. Their primary responsibilities include support and contribute to the Six Sigma projects, participate in charter and scope definition, provide inputs during project meetings. Brainstorm ideas, help collect data where responsible. Follow DMAC process. Applying appropriate tools, review the approach periodically with the green belt and experienced black belt. Provide inputs to green belt and black belts and process owners during the project. 6. Six Sigma Performance: Six Sigma level of performance is also known as 99.999 7% level of performance. You may say 99% quality is good enough for a customer. Then why is there a need for driving six Sigma level of quality that is 99.999 7% quality? Well, here's a snapshot of the difference between these two variants. At 99%, more than 10,000 newborn babies are accidentally dropped by doctors and nurses each year. Whereas at Six Sigma, less than 38 newborn babies are accidentally dropped by doctors and nurses each year. At 99%, no electricity for 85 hours each year. Whereas at Six Sigma, no electricity for only 9 minutes in five years. At 99%, no television transmission for nearly 64 minutes per week. Whereas at Six Sigma, no television transmission for 11 minutes in ten years. At 99%, four short or long plane landing per day, whereas at Six Sigma, one short or long landing every two years. At 99%, 16 railway accidents per day, whereas at Six Sigma, two railway accidents per year. At 99%, 16 minutes per week of unsafe water supply. Whereas at Six Sigma, 1.4 minutes of unsafe water every five years. Well, now you know the reason why Sik Sigma has been the most successful process improvement methodology since the 1980s. Okay. 7. The DMAIC Model: The acronym DeMac stands for define, measure, analyze, improve, and control. It is very similar to the Plan Do Study Act or plan do check act model. Everyone in the organization will be asked to get involved with the Six Sigma model, to look for continual improvement opportunities in their work areas. In a nutshell, you will execute the following activities in each step of the DMAC process. Define, capture the voice of customer, and identify their needs and wants. Measure, collect data for the identified customer issue. Analyze, identify the root cause using graphical and statistical techniques, improve, create action plans, and pilot them on the identified root causes. Control, implement the actions across the floor and sustain the gains. A key factor in each step is for the management to allow the time and resources. This helps to accomplish each of the phases. This also helps to strive for continual improvement. Now, you may ask what is continual improvement and how is it different from continuous improvement? Continuous improvement is an improvement where the organization continues to improve consistently. The good thing about it is that the organization is on track for a very fast growth. However, the disadvantage is that the organization doesn't spend much time to stabilize its processes. This can lead to the downfall of the organization in the long run. On the other hand, continual improvement is that improvement in which the organization grows for a certain period of time and then stabilizes itself on that growth. Then continues to grow for some more time then stabilize again. Then grows again and stabilizes again. This is a recurring process. The benefit of continual improvement is that the organization undergoes steady and streamlined growth pattern. It helps them sustain very well in this constantly changing marketplace. The only possible disadvantage of continual improvement is that it is not as fast as continuous improvement. Thus, continual improvement is a key driving force. It allows S Sigma to be tangentially different from other quality improvement programs. The other driving forces include getting everyone in the organization involved, getting the information technology group to assist in supplying data more quickly for everyone and getting financial data in the form of cost of quality analysis. Okay. 8. Lean and Kaizen: Lean is a business process improvement methodology that focuses on waste elimination from a business process. It ensures that all the activities in a process add value from the customer's viewpoint. Example, en is a philosophy that shortens the timeline between the customer order and shipment by eliminating waste. Lean achieves its objective of waste elimination by classifying each activity in a business process as value added and non value added. Value added activities are those that add value from the customer's viewpoint. Non value added activities are those that the customer is not willing to pay for. These activities do not add any value to the business process from the customer's viewpoint, is. Kison is an acronym of two Japanese words, K and Zen which means change for the better. It is defined as any improvement idea in and around the workplace. Continuous small improvements by everybody in all areas of operations is the most powerful way of reducing variation and defects due to common causes. 9. The Seven Basic Tools of Quality: Although quality was practiced by a few, the real focus on quality by the organizations started after the Second World War. As the quality era began, the industry saw a resurgence of several process improvement tools and techniques. Some of these tools required heavy expertise in statistics. Some techniques were too complex, while some were so simple that yielded no results. At the beginning of this era, it was believed that maintaining quality is the job of only the quality assurance inspectors. However, organizations soon realized that quality is everyone's job. As this realization became widespread, the next question was, how to strengthen every employee of our organization with the know how of these quality improvement tools. And this question led to the birth of what we call the seven basic tools of quality. Okay. In this lecture, you will learn what are the seven basic tools of quality, a quick introduction to each of these seven tools and the history of the seven basic tools of quality. Let's begin. As the name suggests, the seven basic tools of quality are the fixed seven tools to improve quality in any business process. Your first question will be, what is the focus of these seven tools? These tools are focused on identifying root causes, collating data, streamlining processes, and having a direct and positive impact on quality. Are these tool graphical or statistical. Most of these are graphical tools. These tools are designed to solve quality related issues. They can provide quick fixes to business problems. Why are these called the basic tools? These seven tools are called the basic tools because they do not require a high level of statistical understanding. These are simple and can be used swiftly with limited formal training. Their rigorous use for several decades have proven the fact that they can solve a number of quality related issues. So what really are these seven basic tools of quality? These are fishbone diagram, check sheet, control chart, histogram, Pardo chart, scatter diagram, and stratification. Let's talk about each of these. Fishbone diagram. A fishbone diagram is a visual tool. It helps in organizing identified root causes into different categories. Check sheet. Check sheets are data collection forms that are designed to collate data in specific format. When data is collated in a well structured format, it helps in minimizing errors during data collation. Okay. It also helps in reducing the time needed to clean the data and make it suitable to perform analysis. Control charts. Control monitor the process performance over a period of time. You compare the data with historical records and identify if there are any special causes present in your business process. Histogram. Histogram is a frequency distribution diagram. It helps identify if your data is following a normal distribution or any other distribution. Pareto chart. A Pareto chart helps identify those 20% causes that have 80% effects. It is a root cause analysis tool. Scatter diagram. A scatter diagram helps understand the impact of one or multiple independent variables on a dependent variable. It helps define the relationship of the variables in discussion. Stratification. Stratification is used to segregate data based on its sources. In some written material, you will find that that stratification is replaced by flow charts or run charts. What is the history of these seven basic tools of quality. The seven basic tools of quality are said to have been developed after World War two, the quality guru Kauro Ishikawa is credited with the introduction of these tools under one package and brand name? These are said to have been inspired by the seven weapons of Benki Who is Benk? Benki is known as the warrior monk of the ancient era in Japan. He armed himself with seven weapons and is known to have carried them on his back wherever he wandered? Like Benki, Ishikawa believed each professional working in any organization should have knowledge of the seven basic tools and use these wherever possible to improve quality and streamline business processes. 10. Fishbone Diagram: A fishbone diagram has its name that way because a completed diagram resembles the skeleton of a fish. Who conceived and developed this tool. Recall that the seven basic tools of quality were introduced by Kao Ishikava. The fishbone diagram was conceived and developed by the same gentleman, and this is the reason why it is also called the Ishikawa diagram. A fishbone diagram is also known as the cause and effect diagram. Kao Ishikawa was a prominent quality guru of his time in Japan and worked as a professor at the University of Tokyo. Why is a fishbone diagram used? A fishbone diagram helps identify a large number of root causes. It helps you establish the cause and effect relationship in one diagram. This tool is generally used after you have completed a brainstorming summing session. It structures a brainstorming session and visually depicts all the root causes. It ensures that you do not overlook or miss any possible root causes. It keeps the team focused on the causes of the problem rather than the symptoms. The example of a fishbone diagram. This is an example of a completed fishbone diagram. The e of the fish is where you will write the problem. In this example, the problem is low employee productivity. The main bone of this fishbone diagram is further subdivided into sub bones. These sub bones are the infamous predetermined categories called the man method, machine, material, measurement, and mother nature. The fishbone diagram is absolutely flexible. You can use these same category names, or you can build your own categories. Let's look at each of these categories in detail. Man. This category, man, includes people related root causes in your process. Method. The category related to the method will include the root causes of the procedures, machine. The category of machine would include system and other hardware issues. Material. Material can include materialistic problems that your business process may face. Measurement. The category related to measurement includes measuring your metrics, key deliverables, or other measuring gauge related issues. Mother nature. Mother nature includes uncontrollable external factors. When to use a fishbone diagram. You can use a fishbone diagram in the following serios. After completing the brainstorming session as a standalone tool, and if your team is unable to identify root causes. Let's look at each of these in detail. After completing the brainstorming session. Once you complete the brainstorming session, you are required to represent the root causes on one page pictorially. A fishbone diagram comes in very handy. As a stand alone tool. To use a fishbone diagram, you may not always need to execute a project. A fishbone diagram can be used as a standalone tool if you are looking to identify possible root causes of any problem. The team is unable to identify root causes. If you or your team is unable to identify root causes and need to channelize your thoughts in specific directions to gather those root causes, go ahead and use fishbone diagram. Okay. 11. Steps to Create a Fishbone Diagram: Creating a fishbone diagram requires the following steps. Define the problem. Draw the generic headings as branches, brainstorm, the level one root causes, brainstorm, the level two root causes, and cover the entire spectrum. Let's look at each of these in detail. Define the problem. The first step is to define the problem that you're trying to solve. It is said that if you define the problem correctly, you have achieved half of your success. Hence, clearly documenting what the problem is is very critical. Document this problem on a chart paper as the eye of the fish. In this example, you will write low employee productivity. Second, draw the generic headings as branches. In this step, you will draw a horizontal arrow arrow running from the eye of the fish across your chart paper. You will also write generic headings and draw lines from the main arrow towards the generic headings. These generic headings can be the six s or any other headings you prefer to use. In this example, we have drawn these lines and added the six ms as headings. Number three, brainstorm the level one root causes. Ask the Y question to the main problem. Okay. In this step, you will start asking the y question to the main problem. As each idea is discussed, you will write the idea as a branch of the appropriate category. If a cause belongs to multiple categories such as man, as well as the machine, you are allowed to write it as a branch of both the categories, it belongs to. In this example, all the level one root causes are documented and mapped. On this fishbone diagram. Under the category of man, we have issues such as multitasking, workplace stress, burnout, et cetera, that have an impact on employees productivity. You will observe that multitasking is updated in two categories, man, as well as the method. Number four, brainstorm the level two root causes, ask the y question to each root cause. You must then ask the y question against each cause. You can write the sub causes that will branch out of the causes you had documented initially. You should continue asking the y question and generate deeper levels of causes. As you increase these branches, it indicates a causal relationship between the problem and the root causes. In this example, all the level two root causes are now documented. Number five, cover the entire spectrum. As your group feels that it has run out of ideas, you must look at those branches of your fishbone diagram where the ideas are few. That brings us to the end of this lecture. 12. Check Sheets: A check sheet is a generic form that is used for data collation and analysis. It is structured and formed to collect data uniformly, check sheets can be accommodated for a wide variety of purposes. You can modify check sheets, readjust them, alter, change, or transform them based on your needs and wants for collecting data and conduct analysis, when to use a check sheet. It is advisable to use a check sheet in the following scenarios. When you need to collect data regularly in the same format, When you are collecting data for defects, root causes, specific events, issues, or similar situations, when you're collecting data from a production process at a regular frequency, and in the measure phase of your Six Sigma project, when your team is collecting data. 13. Steps to Create a Check Sheet: To create a check sheet, you will follow the six easy steps. They are, identify the situation to be observed, document the operational definition, when who, at what frequency and for how long create your check sheet, pilot the check sheet, roll out the check sheet. Let's look at each of these steps in detail. Identify the situation to be observed. The first step is to understand what situation or event you want to observe. For example, you want to observe the total number of defects in a business process. Document the operational definition. The next step is to document the operational definition of calculating the metric. You must first check if an operational definition already exists. If it doesn't, then you must first focus on creating one. For example, a transaction can only be considered a defect if it does not fulfill the eight parameters outlined in your business process. When, at what frequency, and for how long the next step is to identify when will the data be collated. That is, what will be the frequency to collect this data. Who will collect this data and for how long will you collect this data. For example, the business process executives will collect the data of defects after each defect occurrence, and it will be collected for the next three months. Create your checksheet. The next step is to create the check sheet. You must ensure that anyone can record the data in the check sheet by simply making check marks or symbols. This will make it easy for the person who's recording these details to follow the documentation process. You must also label all the spaces on your check sheet. Create a glossary of definition tab if required to clarify the labels. Pilot the checksheet. You must test the check sheets ease of use, ability to collate data and accuracy issues by executing a pilot for a few weeks. All the findings identified during this pilot needs to be incorporated as feedback and a revised checkshet must be prepared. Roll out the check sheet. Train the users to use the check sheet. Then roll out its use on the shop floor and start recording your data. Check sheet example. This is an example of a check sheet used to collect the different defect types. The users at the tick mark as they collect data over several weeks. 14. Control Charts: Control charts are the means through which process and product parameters are tracked statistically over time. Usage of control charts is referred to as statistical process control or SPC. Attentive use of SPC can allow us to detect special cause variation through out of control signals. You will learn these out of control signals in the next lecture. Control charts incorporate and use two control limits. These are the upper and lower control limits. These reflect the calculated but natural limits of random variation in the process. Why is a control chart used. A control chart is used to analyze the process performance and effectively control it. It identifies and evaluates variation in implemented process improvements. The type of variation determines and helps you understand which corrective action should you take to improve your business process. Control charts are highly sensitive. They may easily reflect small changes over time. When is a control chart used, you will use a control chart when you want to monitor the key short and long term process input and output metrics over time. This is especially useful when a process has changed. Okay. 15. Indicators of an Out-of-Control Process: When you observe a control chart, you need to know the language it speaks. In this lecture, you will learn the seven indicators of an out of control process. The first of the seven indicators is when one or more data points falls outside the control limit. The second one is when you have seven back to back data points that are either following an increasing or decreasing order of occurrence. The third is when you have eight back to bag data points moving on one side of the mean or the average line. Fourth, 14 back to B data points, either alternating up or alternating down. Fifth, two data points out of three back to bag data points are on the same side of the mean or the average. This could be in zone A or beyond. Six, four out of five five back to Bag data points are on the same side of the mean or the average. This could be in zone B or beyond. Seventh, 15 back to Bag data points are above or below the mean or the average line. This could be within zone C. 16. Steps to Create a Control Chart_Part 1: Unlike other tools, there are a number of control charts. These can be used for different situations. For the purpose of understanding the seven basic tools of quality, you will be learning one of the most used variable control chart, and that is an ImR chart. Okay. So what is an IMR chart. IMR stands for individual moving range chart. It is actually two control charts combined together. The first or the top part of the control chart is the individuals chart. And the second or the lower part of the control chart is the moving range chart. The control charts are characterized by a center line and the upper and lower control limits. The center line is the average. The data is plotted in time order. The upper and lower control limits are determined using historical data. The top chart monitors the centering of the distribution of the data from the process. The bottom chart monitors the range or the width of the distribution. Now, learning to create an MR chart can be divided into two parts. The first part focuses on preparing the data to create the chart, and the second part focuses on actually creating the chart and getting inferences from your analysis. This particular 17. Steps to Create a Control Chart_Part 2: In the spreadsheet, I have also provided the remaining columns that we will calculate. In the second worksheet, I have provided the filled columns for your reference. If you hover and click on any cell in the second worksheet, you will find the underlying formula used in that particular cell. Okay. So let's begin. So you will see a number of columns listed. They are bar R, R bar, one Sigma i bar plus one Sigma i bar plus two Sigma i bar plus three Sigma i bar minus one Sigma i bar minus two Sigma i bar minus Sigma R CLR LCL. Hroughout this lecture, I will share the steps to fill out each column, and in the next lecture, we will learn how to create the chart chart. The first step is to freeze the panes of the Excel view. This will allow us to ensure that the headers and the first row never go out of sight. To do that, place your cursor in cell B two, B as in bravo, number two, click in the window section, click the drop down for freeze panes. The panes are frozen and we are ready to move to the next step. In the step, you want to convert this data to a table. Now, what are the benefits of using an Excel table? It saves a lot of time because tables automatically expand when you enter data in the next row or column, and the formulas stay consistent across all of your data. How will you convert your data to tables? The steps are simple. Select the area that you need to convert to a table. I'm going to select all cells from A one to M 51. Click Insert. Clickable. In the create table dialog box, please click Okay. Once you do this step, the area you have selected will turn blue indicating that the cells are converted into a table. Fantastic. In the next step, you will learn how to fill the bar column. Here, you will place your cursor in cell B two, that is Bravo two, Next, use the formula equal to average and select data range 2-51. And hit Enter. Perfect. You will see that the entire column B is populated with the formula for bar data. Again, the entire column is populated because that is a table. Recall that in the previous step, you had converted those cells as table cells. You have to do one thing before moving on to the next step that is reduce the decimal to zero. Now, in the next step, you will populate the moving range column, that is column C. Here you will place your cursor Ill C two, that is Charlie two. Use formula equal to Max A two A minus min A two to three. In other words, you will select the data range of columns two and three for the first cell and and hit Enter. Here you go. You will see the entire column C gets populated with the formula to calculate moving range. Now, you will calculate the R bar, that is column D. In this step, you will place your cursor in cell D two, that is Delta two. Use formula equal to average And select the entire data range in column C. Reduce the decimals to zero. Here you go. The entire MR bar column is populated. In the next step, you will populate the one Sigma column. Using the MR bar value, you can identify our statistical constant to approximate standard deviation value. I can explain why we use a statistical constant instead of taking the standard deviation value. Well, this is the way to approximate the standard deviation. There's plenty of documentation out there on why we do that. But basically, for the one standard deviation value or the approximated standard deviation value, we take the MR bar value and divide it by this constant, which is 1.128. That's our one standard deviation value or the approximated standard deviation in column. Post that reduce their decimal values to zero. Next, you will learn how to calculate column F or bar plus one Sigma. It is the first Sigma level, which is one standard deviation away from the mean. Let's take it's our bar value plus one Sigma for our first Sigma level. Hit Enter. That's it. You now have bar plus one Sigma value that is column F populated. Similarly, populate columns G and H, that is bar plus two Sigma and bar plus three Sigma. To do so, copy the formula in cell F two, that is Frank two cells G two, George two and H two, Henry two. You will see that all cells in these two columns are autopopulated. Now, For column G, that is i bar plus two Sigma, please multiply the value of one Sigma in this formula in this formula, with the number two, and hit Enter. For column H, that is i bar plus three Sigma, please multiply the value of one Sigma in this formula with the number three, and hit Enter. You will see both these columns are auto populated. To populate the columns, J and K, we will do the same steps, but with the minus sine involved. Copy the formula that are in cells f2g2 and H two to cells I two, two and K two. Replace the plus sine with the minus sign in all these three columns. Okay. Hit Enter after updating each cell. Columns, J and K are updated two. You will now update columns L and M. These are the upper and lower control limits for the moving chart. To calculate the value, you will take the constant of 3.267 and multiply it by R bar. That's it. Here we go. The entire column is updated. You will reduce the decimal values to zero. If you calculate the lower control limit value, it will go down to -18. In the scariaro there is no negative value needed on our graph. None of the control limits have negative values either. Hence, you can keep the lower control limit as zero. That's it. You have completed all the columns A to with formulas. We have completed all the groundwork to create the control chart. You must have got tired by thoroughly taking notes and replicating my actions on your computer. Take a 5 minutes break and come back. In the next lecture, you will learn how to create the ImR chart using this data. See you there. 18. Steps to Create a Control Chart_Part 3: In the previous lecture, you learned how to complete the worksheet and do the necessary groundwork to complete the ImR chart on Excel. In this lecture, you will learn how to create the chart using this completed worksheet. The first step is to select the entire data. Click Insert. Under click Insert line or area charts drop down button. Then click the first icon to D line chart. Now, this chart looks almost like a control chart. However, we need to format it well to make it look better. Plus you will see that the chart and the moving range chart is on the same graph. We need to separate them too. We will first create a separate individuals chart and format it. Then we would have the moving chart created and then format it. Let's begin the creation of the individuals chart first. To do that, right click on the chart and select data. Then remove everything to do with the moving in chart, and also remove one Sigma. Okay, so we have the individual chart here. We will now format all the lines that you're seeing on this chart. Let's start with the upper control limit. Click on the line to select it, then right click. Click format data series. Under fill and line, click line. Click the solid line. Give it a lighter shade. Change the width to about 1.75 points, then select the appropriate dash type. Post that, do the same with the lower control limit. Then change the formatting of the center line. I will make it look a little different than the upper and lower control limits. We will then change the formatting of the one Sigma and two Sigma lines. I will change the look of the individual's line. And I will also add markers to it. At the end, I will also change the title to individuals. It looks a perfect individuals chart now. We will now build the moving range chart. You will begin by following the same steps as you had used earlier. Select the entire data. Click Insert. Under click Insert or area charts drop down button. Then click the first icon two D line chart. Okay. Okay. Now, to create the moving chart, follow these steps. Right click on the chart and click Select Data. Then remove everything to do with the individual's chart and also remove one Sigma. Okay, so we have the moving chart here. You will now format all the lines as we had formatted them for the individual's chart. You will I You will also add Markers. Then you will add the title as Moving C. Now, take both the charts and place them on a separate worksheet or a PowerPoint presentation one below the other. That's it. This is your individual moving chart. If the chart by looking at all the out of control guidelines that we had discussed in one of the previous lectures. 19. Histogram: A. A histogram is a frequency distribution diagram. It is called frequency distribution because it shows how often or how frequently each value occurs in a data set. A histogram resembles a bar chart, but there is a difference. The height of the bars in a bar chart represents the total count of the numbers in a dataset. The bars in a histogram represent the frequency of those numbers in the dataset. When is a histogram used. A histogram is used when you want to see whether your data is normally distributed or is it skewed. For normally distributed data, the shape of the histogram curve will be bell shaped. I'm not going into further details of normal distribution and bell shaped data as it does not specifically pertain to this topic of the seven quality tools. However, I will say this. If your data follows a normal a normal distribution. That is, if your data is bell shaped, you can perform statistical tests that consider the mean of the data set. These statistical tests are powerful and give you the right inferences. Next, a histogram is used to analyze whether your process can meet customers' requirements. For example, this is a histogram of the quality scores of a business process. The client given target is 90%, and this histogram indicates that the majority of your data points are between 67.9% to 82.5%. Do you think this process meets the client requirements? Absolutely not. A few data points may be going beyond the target value of 90%, but a majority of them are well below the target. Next. A histogram can also be used how your suppliers process looks like. For example, if your organization requires supplies of screws that are 6 " in height, you can create a histogram and check if your supplier is providing the supplies at the defined levels. Check this histogram. The majority of the screws provided by your suppliers have a height that ranges from 4.75 to 7.75. Not good. The supplier performance needs to be discussed. Next. Using a histogram, you can also check if the process has undergone any changes between two time periods. For example, you are tracking cycle time in your business process. You have implemented a few process improvement steps. Now, you are comparing the performance before the process improvement actions, past cycle time, and after present cycle time. So before the process improvement actions, the cycle time varied between 2.5 to 20 days. In the after stage, the cycle time has improved and is between 3.5 to 8.5 days. That's where the majority of the data points exist. So there is indeed a difference. As you had seen in the previous example, you can also compare histograms to confirm if the outputs of two or more processes are different. 20. Steps to Create a Histogram: A With newer versions of Excel. The task of creating graphics and charts is becoming way easier. That is true for histogram as well. Creating a histogram is inbuilt in this version of Excel. Let's look at the steps to create a histogram in Excel 2016 and beyond. Suppose you have a dataset as shown on the screen. It has the quality score of a business process. You will find this dataset in the resources section of this lecture or in the downloadable materials provided to you with the scores. Select the entire dataset. Click the Insert tab. In the Charts group, click on the Insert Static Chart Option. In the histogram group. Click the histogram chart icon. These steps will insert a histogram chart based on your dataset. You will see that a histogram gets created. The bins are automatically decided by the spreadsheet. If you want to make any changes to these bins or to the histogram, you can customize this chart by right clicking on the vertical axis and selecting format axis. That brings us to the end of this lecture. See you in the next one, Okay. 21. Pareto Analysis : You may have heard a saying that 80% of the wealth lies with 20% people. This particular saying is also applicable to your work environment. You can say that 80% of the defects are due to 20% of the causes for your workplace. This is called the 80 20 rule. It is also called the Peto principle, and it is also called the Peto analysis. The 80 20 rule was coined by Vilfredo Pero around the 1890s. He was an Italian economist. You can imagine this rule being used even today after more than 110 years. That is the power of this principle. In this lecture, you understood the term Peto analysis. In the next lecture, you will look at what is a Pero chart. Okay. 22. Pareto Charts: Here's an example of a parado chart. The horizontal axis has the defect types and the vertical axis has the total number of defects for those defect types. In this parado chart, the red colored line at the top is the cumulative percentage line. This line is represented by the vertical axis to the right of the chart. The vertical axis to the left of the chart is the actual frequency. This count is shown by the height of each bar for each category. These categories or bars are prioritized in descending order, that is from the highest to the lowest. In this chart, defect type C is the biggest defect category, contributing to 48% of total defects. Type A and B are the second and third highest categories with 31% and 12% defects. Together, defect types C, A and B contribute to 91% of total defects. The other categories make up less than 10% of total defects. If you focus on improving defect types C and A, you can reduce up to 79% of total defects, and if you further improve type B defects, you may achieve up to 91% defect reduction. Okay. 23. Steps to Create a Pareto Chart: With newer versions of Excel, the task of creating graphics and charts is becoming way easier. You had seen it in the histogram. This is true for the Pardo chart as well. Creating this chart is inbuilt in this version of Excel. Let's look at the steps to create a Pardo chart in Excel. Suppose you have a dataset as shown on the screen. It has the total number of defects arranged by defect types. To create the parto chart in Excel, select the entire dataset. Click the Insert tab. In the Chart group. Click on the Insert Static Chart Option. In the histogram group. Click the Pardo Chart icon. These steps will insert a Pardo chart based on your data set. You will see that a Pardo chart gets created. You can add data labels to the bars. You can increase the thickness of the cumulative percentage line. The only drawback with the Excel version is that you cannot add the data labels for the cumulative percentage line. I wonder why they did not add this feature. Anyways. Apart from that drawback, your perdo chart is ready to use. That brings us to the end of this lecture. See you in the next one, Okay. 24. Scatter Diagram: A scattered diagram is also known as the scatterplot. It is a powerful visual tool. It is used to display relationship between two variables, cause and effect, and so on. While plotting the scatter diagram, the horizontal line represents the x axis, and the independent variable is plotted on this axis. The vertical line represents the y axis and the dependent variable is plotted on this axis. The plot pattern identifies whether there is any positive or negative correlation or no correlation. What is this positive, negative or no correlation? Let's look at these. If the data points are trending in an upward direction from left to right. The two variables are considered to be positively correlated. That is, if the x variable increases, the y variable will increase and vice versa. An example of this can be as the tenure of employees increase, their quality score increases. That's positive correlation. On the other hand, if the data points are trending in a downward direction from left to right, the two variables are considered to be negatively correlated. That is, if the x variable increases, the y variable will decrease and vice versa. A classic example of this situation is when the price of a product increases, its demand decreases. That's negative correlation. Finally, if you get a diagram like this, there is no correlation between the x and y variables. Now comes an important question. When do you use a scatterplot. You will use a sat plot if you want to identify if an independent variable has an impact on the dependent variable. For example, if a person has been reprimanded by his supervisor and then he has a headache, the action of being remanded is the independent variable, and the result of having a headache is the dependent variable. I was just sharing this as an example. A real life example can be whether quality scores in a business process get impacted by the turnaround time. Here, turnaround time is an independent variable, and the quality scores are termed as the dependent variable. One important point to remember is that a scatterplot can only be constructed when both x and y variables are continuous. 25. Steps to Create a Scatter Diagram: In the given example, you are given a data with car price and salary. You need to identify if an employee salary has an impact on the type of the car that he buys. The factor of salary is thus an independent variable or the x variable, and the factor of car price is the dependent variable or the y variable. As shared earlier, you need to identify if an employee salary has an impact on the type of the car that he buys. To construct the scatter plot, select the data range on the Excel spreadsheet. Click Insert in the chart group, click the scatter symbol. Click scatter. Here you go. This is your scatterplot. As you can see on the scatter plot, the dots are moving in an upward direction from left to right. This indicates that the x and y variables that is a salary and car price are positively correlated. That is, as the salary increases, there is an increase in the purchasing power, and thus, there is an increased ability to buy a car at a better price. In other words, an employee's salary does have an impact on the type of the car that he buys. Also note that positive correlation or negative correlation between variables does not mean there is a cause and effect relationship. For example, if I change the headers of these variables to sale of umbrellas and the crime rate, the scatter plot will still show that both these variables are positively correlated, but you will have to use your judgment to confirm if the two variables are indeed correlated. Okay. 26. Stratification: A If your business process operates in multiple shifts or has distinct group of people managing processes and sub processes, and if you want to find out if there is a difference in their performance, you will use stratification. Please keep in mind that the business process is the same. We are tracking any potential variation within the business process. So to track this variation, you may data people or objects into distinct groups or layers. You may not use this technique as a standalone technique. You may use it in combination with other graphical tools such as scat plot, run chart, histogram, among others. The significance of stratification is that if you have data from a wide variety of sources, it may be difficult to seek meaningful inferences from the available data. You can slice and dice the data, in other words, stratify and get the needed meaningful inferences. When to use stratification, ratification requires the application of logic and an understanding of the business process. You need to know what are the different factors the data may possess. You can use ratification in several scenarios. Before collecting data, when your data is coming from several sources such as different shifts, different days of the week, different suppliers, or different population groups, when you know that your data may require separating the different sources or conditions. I'm sharing a non exhaustive list of the different sources that might require your data to be stratified. One, different days of the week, two different months of the year. Three, different quarters of the year, four materials from different types of equipment, five, the output of different shifts, six, the output of different departments, seven different raw materials, eight, different suppliers, nine, different time of the day, ten, use of different products. 27. Steps to Create a Stratification Analysis: Now, there are different ways and means you can stratify your data. The simplest way is to provide a title for the source when you collect the data. For example, when you collect the cycle time data for different shifts, you may want to tag the data collected for shift one and shift two respectively. I'm sharing one more Excel technique that will help you easily stratify your data and visually show if any difference exists. So here is the data on Excel. You will see the cycle time data of shift one that is matched with the tenure of employees of Shift one. Likewise, the cycle time data of Shift two matched with the tenure of employees of Shift two. You will be plotting cycle time versus tenure for two different shifts and looking for the potential difference in their performance. So let's begin the analysis on Excel. Select the first two columns cycle time shift and tenure shift one. Click Insert. Then click Scatter. Click the first scatter plot. Okay, now you see the scatterplot of tenure was a shift. Let's add the titles for the x and y axis. The x axis is the horizontal axis, and the y axis is the vertical axis. The x axis is the cycle time data, we will add the x axis title as the cycle time. Select the graph. Then click Chart Design. Click Add Chart Elements. Then click Axis Titles and primary horizontal horizontal. Enter cycle time in hours as the horizontal axis name. I will also bold it. You will now add the y axis title as tenure in months. Ensure that you have selected the graph. Click Add Chart Elements. Then click Axis Titles and primary vertical. Enter tenure in months as a vertical axis name. I will bold this one too. Okay. Here you go. Your first part is ready. You will now add the second chart on this one. Recall, the second data is of the second shift, and we are analyzing the performance of shift one versus shift two. To proceed, please select the second data on the Excel spreadsheet. Now hit Control C on your keyboard to copy this data. Next, click the graph to select it. Then click the drop down for paste and click Paste Special. You will get the paste special box. In that, check the box that says categories x values in first column. Then click. Okay. Here you go. The second shift data is pasted in the same chart, and these data points are displayed in a different color. Let's look at and analyze this graph for a moment. You will find that the shift one employees have a lower tenure 0-20 months and have a higher cycle time 20-120 hours. Whereas employees of shift two have a tenure ranging from 20 plus months to 50 months and have a lower cycle time of about 40 hours. This is fantastic. By just looking at this graph, you were able to determine that the two shifts have employees belonging to different tenures. You have also identified employees with a lower tenure have higher cycle time as compared to employees with a higher tenure. With this method, you have easily stratified the data, analyzed it, and identified the inferences. Well done. I must point out that this is not the only method of stratification. There are multiple ways and means. For the purpose of this course, I have recommended one of the most used stratification methods. 28. Course Conclusion: Let us now summarize our learnings in this white belt program. You understood the importance of quality. You learned the different definitions of quality as given by the quality guru. You also learned why quality is important for sustaining the business. You then looked at the history of Six Sigma. The next topic was to understand Six Sigma. You understood the definition of Six Sigma from various perspectives, such as six Sigmas a philosophy, Six Sigma a set of tools, Six Sigma is a methodology, Six Sigma is a metric. You then learned the different phases of a Six Sigma project. It was in the form of the DMC model. DAC stands for, define, measure, analyze, improve and control. You then spent some time to understand the typical roles of individuals in a Sik Sigma project. You also learned about the primary responsibilities of a white belt. You then learned the concepts of lean, value added and non value added activities and is in. You then spent a lot of time to understand the seven basic tools of quality. These tools include the fishbone diagram, check sheets, control charts, histogram, Pareto analysis, scattered diagram, and stratification. You understood the concepts. You completed relevant activities, and you practiced these tools in a hands on manner. I sincerely hope you have loved this journey. I will humbly request you to share your feedback and review the course. I will see you in the next course till then have a wonderful time.