bilal ahmed shaik six sigma

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2013

SHAIK BILAL AHME

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Six Sigma Manual

Six Sigma is a methodology for pursuing continuesimprovement in customer satisfaction and profit. It is amanagement philosophy attempting to improveeffectiveness and efficiency.

The main goal of Six Sigma is to identify, isolate, andeliminate variation or defects.

In our Manual you will learn what Six Sigma is and how touse Six Sigma in an organization.

Audience

This Manual has been prepared for the beginners to helpthem understand basic functionality of Six Sigma. Aftercompleting this Manual you will have an averageknowledge about Six-Sigma from where you can takeyourself to next levels of expertise.

Prerequisites

We assume you have little knowledge about QualityControl and Quality Assurance and related terminologies.


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Six Sigma Introduction - What is Six Sigma

What is Six Sigma ?

Six Sigma's aim is to eliminate waste and inefficiency,thereby increasing customer satisfaction by deliveringwhat the customer is expecting.

Six Sigma is a highly disciplined process that helps usfocus on developing and delivering near-perfect productsand services.

Six Sigma follows a structured methodology, and hasdefined roles for the participants.

Six Sigma is a data driven methodology, and requiresaccurate data collection for the processes being analyzed.

Six Sigma is about putting results on FinancialStatements.

Six Sigma is a business-driven, multi-dimensionalstructured approach to:

o Improving Processes

o Lowering Defects

o Reducing process variability

o Reducing costs

o Increasing customer satisfaction

o Increased profits


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The word Sigmais a statistical term that measures how fara given process deviates from perfection.

The central idea behind Six Sigma is that if you can

measure how many "defects" you have in a process, youcan systematically figure out how to eliminate them andget as close to "zero defects" as possible and specificallyit means a failure rate of 3.4 parts per million or 99.9997%perfect.

Key Concepts of Six Sigma

At its core, Six Sigma revolves around a few key concepts. Critical to Quality: Attributes most important to the

customer. Defect: Failing to deliver what the customer wants. Process Capability:What your process can deliver. Variation: What the customer sees and feels. Stable Operations: Ensuring consistent, predictable

processes to improve what the customer sees and feels. Design for Six Sigma: Designing to meet customer

needs and process capability.

Our Customers Feel the Variance, Not the Mean. So SixSigma focuses first on reducing process variation and thenon improving the process capability.

Myths about Six Sigma:There are several myths and misunderstandings about SixSigma. Few are given below:

Six Sigma is only concerned with reducing defects.


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Six Sigma is a process for production or engineering.

Six Sigma can not be applied to engineering activities.

Six Sigma uses difficult-to-understand statistics. Six Sigma is just training.

The Benefits of Six Sigma

There are following six major benefits of Six Sigma thatattract companies.

Six Sigma: Generates sustained success.

Sets a performance goal for everyone.

Enhances value to customers.

Accelerates the rate of improvement.

Promotes learning and cross-pollination.

Executes strategic change.

Origin of Six Sigma

Six Sigma originated at Motorola in the early 1980s inresponse to achieving 10X reduction in product-failurelevels in 5 years.

Engineer Bill Smith invented Six Sigma, but died of a heartattack in the Motorola cafeteria in 1993 never knowing thescope of the craze and controversy he had touched off.


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Six Sigma is based on various quality managementtheories (e.g.: Deming's 14 point for management, Juran's10 steps on achieving quality ).


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Six Sigma Key Elements

There are three key elements of Six Sigma ProcessImprovement.

Customers

Processes

Employees

The Customer:

Customers define quality. They expect performance,reliability, competitive prices, on-time delivery, service,clear and correct transaction processing and more.

Today, Delighting a customer is a necessity. Because ifwe don't do it, someone else will!

The Processes:

Defining Processes and defining Metrics and Measures forProcesses is the key element of Six Sigma.

Quality requires to look at a business from the customer'sperspective, In other words, we must look at definedprocesses from the outside-in.

By understanding the transaction lifecycle from the

customer's needs and processes, we can discover whatthey are seeing and feeling. This will give a chance toidentify week area with in a process and then we canimprove them.

The Employees:


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The company must involve all employees in Six SigmaProgram. Company must provide opportunities andincentives for employees to focus their talents and ability

to satisfy customers.This is important to six sigma that all team membersshould have a well defined role with measurableobjectives.


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Six Sigma Organization

Under a Six Sigma program, members of an organizationare assigned specific roles to play, each with a title. Thishighly structured format is necessary in order to implementSix Sigma throughout the organization.

There are seven specific responsibilities or "role areas" inthe Six Sigma program. These are:

Leadership:

A leadership team or council defines the goals andobjectives in the Six Sigma process. Just as a corporateleader sets a tone and course to achieve an objective, theSix Sigma council sets out the goals to be met by theteam. Here is the list of leadership CouncilResponsibilities,

Define the purpose the Six Sigma Program.

Explain how the result is going to benefit the customer.

Set a schedule for work and interim deadlines.

Develop a means for review and oversight.

Support team members and defend established positions.

Sponsor:Six Sigma sponsor are high-level individuals whounderstand Six Sigma and are committed to its success.The individual in the sponsor role acts as a problem solverfor the ongoing Six Sigma project. Six Sigma will be lead


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by a full-time, high-level champion, such as an ExecutiveVice President.

Sponsors are owners of processes and systems who help

initiate and coordinate Six Sigma improvement activities intheir areas of responsibilities.

Implementation leader:

The person responsible for supervising the Six Sigmateam effort, who supports the leadership council byensuring that the work of the team is completed in the

desired manner.

Implementation leader ensuring success of theimplementation plan and solving problems as they arise,training as needed, and assisting sponsors in motivatingthe team.

Coach:

The Six Sigma expert or consultant who sets a schedule,defines results of a project, and who mediates conflicts ordeals with resistance to the program.

Duties include working as go-between for sponsor andleadership, scheduling the work of the team, identifyingand defining desired results of the project, mediatingdisagreements, conflicts, and resistance to the programand identifying success as it occurs.

Team leader:


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The individual responsible for overseeing the work of theteam and for acting as go-between with the sponsor andthe team members.

Responsibilities include communication with the sponsorin defining project goals and rationale, picking andassisting team members and other resources, keeping theproject on schedule, and keeping track of steps in theprocess as they are completed.

Team member:

An employee who works on a Six Sigma project, givenspecific duties within a project, and deadlines to meet inreaching specific project goals.

The team members execute specific Six Sigmaassignments and work with other members of the teamwithin a defined project schedule, to reach specificallyidentified goals.

Process owner:

The individual who takes on responsibility for a processafter a Six Sigma team has completed its work.

Extended Definitions of Roles - Belt Colors

Many labels have evolved over the years that Six Sigma

has been in use. The assignment of belt colors to variousroles is derived from the obvious source, martial arts.Based on experience and expertese following roles haveevolved.


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Now you have decided to go for Six Sigma. So what'snext:

Deploying a Six Sigma within an organization is a big step

and involved many activities including define, measure,analyze, improve, and control phases. These phases arediscussed in subsequent session. Here are some stepswhich are required for an organization at the time ofstarting Six Sigma implementation.

Plan your own route:There may be many paths to SixSigma but the best is the one that works for yourorganization.

Define your objective: Its important to decide what youwant to achieve and priorities are important

Stick to what is feasible:Set up your plans so that theycan match your influences, resources and scope.

Preparing Leaders:They are required to launch andguide the Six Sigma Effort.

Creating Six Sigma organization:This includes

preparing Black Belts and other roles and assigning themtheir responsibilities.

Training the organization:Apart from having black beltsit is required to have all employees Six Sigma skilled.

Piloting Six Sigma Effort:Piloting can be applied to anyaspect of Six Sigma including solutions derived from

process improvement or design redesign projects.Project Selection for Six Sigma:

One of the more difficult challenges in Six Sigma is theselection of the most appropriate problems to attack.There are generally two ways to generate projects:


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A set of business processes is documented. Theseprocesses will be executed to meet customer'srequirements and to resolve their Critical to Quality issues.

(3) Develop a project charter:

This is a document that names the project, summarizesthe project by explaining the business case in a briefstatement, and lists the project scope and goals. A projectcharter can have following components

Project Name

Business Case

Project Scope

Project Goals

Milestones

Special Requirements

Special Assumptions

Roles and responsibilities of the project team

(4) Develop the SIPOC process map:

A process is defined as the series of steps and activitiesthat take inputs, add value, and produce an output.

SIPOC is a process map that identifies all the followingelements of a project:

Suppliers Input


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First we calculate Defects Per Million Opportunities(DPMO) and based on that a Sigma is decided from apredefined table:

Numberof defects

DPMO = ----------------------------------

---------x 1,000,000

Numberof Unitsx Numberof

opportunities

As stated above, here Number for defects is total number

of defects found, Number of Units is the number of unitsproduced and number of opportunities means the numberof ways to generate defects.

For example: The food ordering delivery project teamexamines 50 deliveries and finds out the following:

Delivery is not on time (13)

Ordered food is not according to the order (3)

Food is not fresh (0)

So now DPMO will be as follows:

13+3

DPMO =-----------x 1,000,000=106,666.7

50x 3

According to the Yield to Sigma Conversion Table givenbelow 106,666.7 defects per million opportunities is


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equivalent to a sigma performance of between 2.7 and2.8.

This is the method used for measuring results as we

proceed through a project. This beginning point enablesus to locate the cause and effect of those processes andto seek defect point so that the procedure can beimproved.

(3) Failure Mode and Effects Analysis - FMEA:

The final segment of the measure phase is called FMEA.

This refers to preventing defects before they occur. TheFMEA process usually includes rating possible defects, orfailures, in three ways:

The likelihood that something will go wrong.

The ability to detect a defect.

The level of severity of the defect.

You may use a rating scale. For example, rate each ofthese three areas from 1 to 10, with 1 being the lowestFMEA level and 10 being the highest. The higher the level,the more severe the rating. So a high FMEA wouldindicate the need to devise and implement improvedmeasuring steps within the overall process. This wouldhave the effect of preventing defects. Clearly, there is noneed to spend a lot of time on this procedure if thelikelihood of a defect is low


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Yield to Sigma Conversion TableYield % Sigma Defects Per Million Opportunities

99.9997 6.00 3.499.9995 5.92 599.9992 5.81 899.9990 5.76 1099.9980 5.61 2099.9970 5.51 3099.9960 5.44 4099.9930 5.31 7099.9900 5.22 10099.9850 5.12 15099.9770 5.00 23099.9670 4.91 33099.9520 4.80 48099.9320 4.70 68099.9040 4.60 96099.8650 4.50 135099.8140 4.40 186099.7450 4.30 255099.6540 4.20 346099.5340 4.10 466099.3790 4.00 621099.1810 3.90 819098.9300 3.80 1070098.6100 3.70 1390098.2200 3.60 1780097.7300 3.50 2270097.1300 3.40 2870096.4100 3.30 3590095.5400 3.20 4460094.5200 3.10 5480093.3200 3.00 6680091.9200 2.90 8080090.3200 2.80 9680088.5000 2.70 11500086.5000 2.60 13500084.2000 2.50 15800081.6000 2.40 18400078.8000 2.30 21200075.8000 2.20 24200072.6000 2.10 27400069.2000 2.00 30800065.6000 1.90 34400061.8000 1.80 38200058.0000 1.70 420000


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Six Sigma - Control Phase

The last phase of DMAIC is control, which is the phase inwhich we ensure that the processes continue to work well,produce desired output results, and maintain qualitylevels. You will be concerned with four specific aspects ofcontrol, which are:

(1) Quality control:

The ultimate purpose in control is overall assurance that ahigh standard of quality is met. The customer's

expectations depend on this, so control is inherentlyassociated with quality.

Since the purpose to Six Sigma is to improve overallprocess by reducing defects, quality control is theessential method for keeping the whole process on track;for enabling us to spot trouble and fix it; and for judginghow effectively the project was executed and

implemented.

Quality is at the heart of the Six Sigma philosophy.Reducing defects has everything to do with striving forperfection. Whether we reach perfection or not, the effortdefines our attitude toward quality itself.

(2) Standardization:

One feature of smooth processing is to enable processesto go as smoothly as possible. This usually meansstandardization. In a manufacturing environment, thevalue of standardization has been proven over and over.


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is similar to a camcorder, recording some process elementover time.

Tool #10 The Control Chart:

Similar to a run chart, a control chart uses the data from arun chart to determine the upper and lower control limits.Control limits are the expected limits of variation aboveand below the average of the data. These limits aremathematically calculated and indicated by dotted lines.

Conclusion:

We saw 10 major technical tools a project team memberuses during the time they are on a Six Sigma team. Theseare not the only tools a Six Sigma team may use.However, the tools covered here are those that are mostcommon for every team member to be aware of andknowledgeable about.


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Six Sigma Glossary - Terminology"As Is" Process Map

Depicts a process as it is, currently. "As is" process mapsare usually characterized by several input options,bottlenecks and Multiple handoffs, inspections & reworkloops.

It is the starting point to understanding how a process isrunning. It becomes a "Should Be" map once all non-valueadded activities have been removed from the "As Is"

process, after careful analysis.

"Should be" Process Map

A depiction of a new and improved version of a process,used in DMAIC and iDMAIC projects, where all non-valueadded steps have been removed and based on:

Everything being done right the first time

Customer requirements built into the process

Flexibility to meet multiple customer types or requirements

Design with "process" vs. "functional" mindset

Limited handoffs and inspections

Ease to document, manage, train and control Several possible inputs

Bottleneck eliminated

Handoffs, inspection & rework loops no longer needed


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includes a clear statement of the improvement (i.e.business case and Project Definition Form), a high-levelmap of the process (SIPOC), and a list of what is

important to the customer. The Define Phase is alsoclosely linked to the next phase, Measure. Because theDMAIC cycle is iterative, the process, problem, flow, andrequirements should be verified and updated for claritythroughout the other phases.

Deployment Process Map

A map or graphical view of the steps in a process shows

the sequence as it moves across departments, functions,or individuals. This type of process map shows "hand-offs"and the groups involved. It is also known as a functional orcross-functional flowchart or map.

Descriptive Statistics

A statistical profile of the collected data; these measures

include measures of averages, variation, and othernumbers which help team members assess "how bad" aproblem is and to pinpoint where to focus further analysisand solutions.

Design for SIXSIGMA (DFSS)

Describes the application of SIXSIGMA tools to product

development and Process Design efforts with the goal of"designing in" SIXSIGMA performance capability. This is incontract to "SIXSIGMA Improvement".


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organization; establishes, reviews, and supports theprogress of SIXSIGMA DMAIC and iDMAIC projects. TheGlobal SIXSIGMA Council is responsible for designing and

driving SIXSIGMA throughout Starwood.Goal statement

Description of the intended target or desired results ofProcess Improvement or Design/Redesign activities;usually outlined during the proposal phase of the PDF,revised in the Define phase of a DMAIC project andsupported with actual numbers and details once data has

been obtained. This information is recorded in the E-SIXSIGMA Project Tool.

Green Belt

Associates trained to the same level as Black Belts, butnot on full-time assignment to SIXSIGMA. Green Beltsassignments will vary. They may do DMAIC projects, lead

smaller SIXSIGMA projects on a part-time basis, serve onlarger projects as team members, and/or undertakeimplementation of Quick Hits or Innovation Transferprojects.

Handoff

Any time in a process when one person (or job title) or

group passes the item moving through the process toanother person; a handoff has the potential to add defects,time, and cost to a process.


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these points the customer has an opportunity to form anopinion (positive, neutral, or negative) about the processor organization. Examples of "moments of truth" include

speaking to reservations, having dinner delivered to aroom, or phoning for a wake-up call.

Multiple Regression

What is it? Quantitative method relating multiple factors tothe output of a process. The statistical study of therelationship of a combination of multiple variables (X1 X2X3...Xn) to a single output Y. For example, timeliness of

room service can be studied by quantifying staffing level,staff training, and room occupancy.

Multivoting

A narrowing or prioritization tool. Faced with a list of ideas,problems, causes, etc., each member of a group is given aset number of "votes". Those items or issues receiving the

most votes get further attention/consideration.

NPV

Net Present Value. The equivalent value in today's dollarsof a stream of future cash flows. NPV calculation seeks toquantify the concept that money received in the future isworth less than money received today.

Non-value-adding activities

Any steps in a process that do not add value to thecustomer or process. Examples include rework, handoffs,inspection, delays.


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Process

A series of steps or actions that lead to a desired result oroutput. A set of common tasks that creates a product,

service, process or plan that will satisfy a customer orgroup of customers.

Process Owner

Process owners are exactly as the name sounds - theyare the responsible individuals for a specific process. Forinstance, in the legal department there is usually one

person in charge - maybe the VP of Legal - that's theprocess owner. There may be a Director of Marketing atyour property - that's the process owner for marketing, andfor the Check-in process, the process owner is typicallythe Front Office Manager.

Process capability

Statistical measures that summarize how much variationthere is in a process relative to customer specifications.

Process improvement

Improvement approach focused on incremental changes,involves solutions to eliminate or reduce defects, costs orcycle time; leaves basic design and assumptions of aprocess intact.

Process in Control

A statistical concept indicating that a process is operatingwithin an expected range of variation and that variation isbeing influenced mainly by "common cause" factors;


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processes operating in this state are referred to as "incontrol".

Process management

Defined and documented process, monitored on anongoing basis to ensure that measures are providingfeedback on the flow/function of a process; key measuresinclude financial, process, people, and innovation. ProcessManagement along with Process Improvement andProcess Redesign makes up the core structure of theSIXSIGMA Initiative.

Process map or flowchart

Graphic display of the flow or sequence of events that aproduct or service follows; it shows all activities, decisionpoints, rework loops, and handoffs.

It allows the team to visualize the process and come to

agreement on the steps of a process as well as examinewhich activities are duplicated.

Process measures

Measures related to individual steps in the process and/orthe overall process; can be predictors of output measures.Often referred to as "X" variables in data., they Quantifyeither effectiveness or efficiency at key points in theprocess. Some process measures will be "subsets" ofoutput measures (e.g. "Cycle time per step" as a Processmeasure adds up to "Total cycle time" as an outputmeasure.)


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Process redesign

Method of restructuring a process by eliminating handoffs,rework, inspection points, and other non-value-adding

activities; typically means a "clean slate" design andaccommodates major changes or improvements.

Teams use this option when a process does not exist orthe process is truly broken

Project Definition Form (PDF)

A summary of pertinent information that describes aSIXSIGMA project. This will include items like: problemstatement, goal statement, scope, business case, financialbenefits & costs, project timing, resource requirements,measures, etc. The PDF will evolve and expand over thelife of the project as it moves from one DMAIC phase toanother.

Project ManagementUse of tools, techniques, and/or software to track a projectand prevent barriers to on-time success.

Project Nomination (iDMAIC)

A Black Belt, MBB, Sponsor, or General Managerassociated with a project nominates the project for

Innovation Transfer, using the e-Six Sigma project tool.The nominator evaluates the project and tabulates a"score" based on the following guidelines:

Financial benefits significant and applicable in similar

properties?


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functional collaboration efforts. He or she will remain up todate on key aspects of the project by regularly meetingwith the team leader and members.

The project sponsor:

Is a member of the Executive committee

Is accountable for project success

Addresses cross-functional or other barriers

Reviews and tracks progress with team leader

Advocates for necessary resources

Project rationale

Broad statement defining area of concern or opportunity,including impact/benefit of potential improvements, or riskof not improving a process; links to business strategies,the customer, and/or company values. The Business Caseis included in the project description tab of the E-SIXSIGMA Project Tool.

Property SIXSIGMA Council

The governing group responsible for project selection andstatus monitoring at each Starwood property. Themembers of the SSC are the General Manager, the

Executive Committee and the Black Belt.


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Random sampling

Method that allows each item or person chosen to bemeasured, to be selected completely by chance.

Regression

The statistical study of relationships. An analytical tool thatallows an assessment of a key outcome and extent towhich one or more factors being studied can explain thevariation in results see also Simple Linear Regression;Multiple Regression.

Repeatability/Reproducibility

These are important considerations when setting upmeasurements. Repeatability means that: The sameperson taking a measurement on the same unit gets thesame result. Reproducibility means that: Other people (orother instruments or labs) get the same result you get

when measuring the same item or characteristic.Required Best Practices

A project designated by the division or global leadershipteam that delivers superior performance whenimplemented across a class of properties. "Required"means that all properties in a "class" must implement thebest practice by a specified point in time. A "class" could

be based on geography (e.g., Atlanta area, Italy, global),brand (e.g., Sheraton, Westin,) or type (e.g., resortproperty, airport property).


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Response Plans

These plans are developed during the "Control" phase forDMAIC and iDMAIC projects to ensure that the gains

achieved can be maintained. As conditions change, aResponse Plan helps monitor results and respond toproblems, manage processes day-to-day, and helppractice continuous improvement.

Reverse SIXSIGMA

MBBs (and BBs) can use this method in times of financial

contingency to help guide restructuring discussions Thisprocess enables a property or department to rapidly focusits restructuring resources on valuable work and eliminatelesser or non value added work. This standard helps theteam identify:

What work adds no value in the current environment

What work adds value at high cost What work must be done but with fewer resources and

What work we must do, but with lowered requirements

When deploying this framework rapidly, the lower riskapproach is to focus first on the non-guest facingprocesses and outputs (internal customers).

Revision plan

A mechanism (process) for updating processes,procedures, and documentation.


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Rework loop

Any instance in a process when the item or data movingthrough the process has to be corrected by returning it to a

previous step in the process; adds time, costs, andpotential for confusion and more defects. An example of aRework Loop, would be an inspection process, takingplace after production and independent of the productioncycle, taking care of removing defects.

Risk Management

Risk management is about thinking ahead and preparingfor things that may go wrong. This includes identifyingpotential problems and putting together preventive andcontingent action plans, in order to reduce the potentialdamage.

Rolled throughput yield

The cumulative calculation of defects through multiplesteps in a process; calculated as the product of theindividual yield at each step (expressed as a percentage).For example, in an 8 step process with each step at 99%,the rolled throughput Yield is 99 x 99 x 99 x 99 x 99 x 99 x99 x 99 or 95%.

Run chart (or time plot, trend chart)

Measurement display tool showing variation in a factorover time; indicates trends, patterns, and instances ofspecial causes of variation.


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SIPOC

A SIPOC is a high-level process map that includesSuppliers, Inputs, Process, Outputs, and Customers. It

defines the Start and end Points of a process. Quality isjudged based on the output of a process. The quality ofthe output is improved by analyzing input and processvariables. SIPOC is a very effective communications tool.It ensures that the team members are all viewing theprocess in the same way. It also informs leadership onexactly what the team is working on. Therefore, it should

be done in the early stages of a project.

SIXSIGMA

Level of process performance equivalent to producing only3.4 defects for every one million-defect opportunity.

Term used to describe process improvement initiativesusing sigma-based process measures and/or striving for

SIXSIGMA-level performance, it is also:

A measure to define the capability of a process

A goal for improvement that reaches near-perfection

A system of management to achieve top performance tobenefit the business and its customers, associates,owners and shareholders.

SIXSIGMA Council Training

A course designed to enable property ExecutiveCommittees and senior leaders to make value-drivendecisions by identifying, prioritizing, and sizing projects for


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their Black Belts. The participant audience is composed ofGeneral Managers, Hotel Executive Committee Members,Select Department Heads, and Black Belts.

SIXSIGMA Councils

Leadership group that guides the implementation of qualityor SIXSIGMA within an organization; establishes, reviews,and supports the progress of quality improvement teams.These councils are conducted at the Property, Area,Division and Global levels and projects are passedbetween them for approval and capture of possible best

practices.

SPC

Statistical Process Control; use of data gathering andanalysis to monitor processes, identify performanceissues, and determine variability/capability.

SamplingCollecting and using a portion of all of the data to drawconclusions (for example, timing the check-in process forevery tenth guest). Sound conclusions can often be drawnfrom a relatively small amount of data. We samplebecause collecting and looking at all the data may be tooexpensive or too time consuming.

Sampling bias

Collecting an unrepresentative "slice" of data that will leadto inaccurate conclusions. For instance, measuring check-


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out time only at 12 noon may lead to inaccurateconclusions about average check-out time.

Scatter plot or diagram

Graph used to show the relationship . or correlation .between two factors or variables.

Scope

Defines the boundaries of the process; clarifies specificallywhere the start and end points for improvement reside (forinstance, room service delivery time from the time of theguest call to knocking on the guest door); defines whereand what to measure and analyze; needs to be within thesphere of control of the team working on the project . thebroader the scope, the more complex and time-consumingthe improvement efforts will be.

Simple Linear Regression

The statistical study of the relationship between a singlevariable X to a single output Y. Fitting a line though a setof data in such a way as come as close as possible togoing through each data point. See also Regression;Multiple Regression.

Solution Statement

A clear description of the proposed solution(s); used toevaluate and select the best solution to implement.


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Special cause variation

Event that impacts processes only under "special"circumstances . i.e., not part of the normal, daily operation

of the process. An example of a special Cause forvariation in a process, could be "Snow in Phoenix",resulting in a greater number of Call outs from employees.It differs from Common Cause in the sense that it is notusual and does not occur on a regular basis.

Stakeholder Analysis

Identifies all stakeholders impacted by a project and theiranticipated and required levels of support for the project.Typical stakeholders include managers, people who workin the process under study, other departments, customers,suppliers and finance. A DMAIC or iDMAIC project willrequire a fundamental change in the process. In an effortto reduce the resistance to change, it is crucial to identifythe stakeholders early on, and to develop acommunication plan for each of them. Regularcommunication can create more buy-in, identify bettersolutions, and avoid pitfalls.

Standard Deviation

The lower case letter "sigma" in the Greek alphabet . s . isa symbol used to represent the "Standard Deviation" of a

population. Standard Deviation is an indicator of theamount of "variation" or inconsistency in any group ofitems or process. For example when you buy fast foodthat's nice and hot one day, lukewarm the next . that'svariation. Or if you buy three shirts of the same size and


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one is too small, that's also variation. Looking at variationhelps Management to much more fully understand the realperformance of a business and its processes.

Standard Operating Procedure (SOP)

A document that compiles all procedures, job tasks,scripts of interactions with customers or others, datacollection instructions and forms, and an updated list ofresources to be consulted for clarification of procedures.SOP's allow the property/company to maintainreproducibility of all aspects of a process improvement

across shifts, time periods, and leadership changes.

Storyboard

A visual display outlining the highlights of a project(DMAIC, iDMAIC or Quick Hit) and its components leadingthe team to a solution. It is used in presentations toSponsor, Senior Management, and others.

Stratification

Stratification means dividing data into groups based onkey characteristics. The purpose of dividing data intogroups is to detect a pattern that localizes a problem andexplains why the frequency of impact varies betweentimes, locations or conditions. For instance, when studying

check-in problems, it may be necessary to look atafternoon, evening, and late night time periods separately.


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Sub-process

A sub-component of a larger process. Example: guestgreeting, key encoding and guest registration are sub-

processes within the check-in process.

Supplier

Any person or organization that feeds inputs (products,services, or information) into the process.

Systematic sampling

Sampling method in which elements are selected from thepopulation at a uniform level (e.g., every half-hour,everything twentieth item). This is recommended for manySIXSIGMA measurement activities. In DMAIC we areusually sampling from a process. We want to ensure thatwe can see the behavior of the process. So we samplesystematically or with subgroups across time. Systematic

or subgroup sampling ensures the sample will berepresentative of the process because each time period isrepresented.

Team leader

For DMAIC projects, the team leader is usually the BlackBelt. For Quick Hit and iDMAIC projects, it is typically theSponsor or Process Owner. For large DMAIC projects with

more than one BB or MBB, the Team leader is the mainpoint of contact for the project.


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Team member

An active member of a Six Sigma Project team (DMAIC oriDMAIC),heavily involved in the measurement, analysis

and improvement of a process. To be effective, teammemberships require a minimum of 10% time commitmentto a phase of the project. He/she also helps fosters the SixSigma culture within the organization by informing/educating fellow Associates about Six Sigma tools andprocesses.

Tollgate

A review session that determines whether activities up tothat point in a project have been satisfactorily completed.Tollgates are commonly conducted to review criticaldecisions during a project.

Transfer Team

Team formed at a property, with responsibility forimporting a Best Practice (Optional or required), led by aTeam leader appointed by the property Six Sigma Council,and coached by the Black Belt at the property whenneeded. Transfer teams will use the iDMAIC methodologyto import innovation into their properties.

Transfer Team Leader (Process Owner/Department

Head)A person selected by the GM and property SIXSIGMACouncil to lead an iDMAIC project based primarily onproximity and decision-making authority relative to theprocess involved. This person has primary responsibility


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for implementing the project, leading the team, andinteracting with others to gather information andunderstanding necessary to succeed. Often, the transfer

team leader will be the department head or process ownerof the process being improved with the best practice. Theability to lead the team and to anticipate clear barriers areimportant characteristics for a person in this role.

Transfer Team Member

Associates selected by the Transfer Team Leader and SixSigma Council to serve on the iDMAIC project based on

their knowledge of key aspects of the process, experiencewith the current process, enthusiasm for improvement,and ability to champion change. Other key factors inselecting transfer team members include time availabilityand representation from relevant functions. All memberswill be provided training on the skills and tools used in thetransfer process.

Transfer project

A project that a property imports from another property.

Tree diagram

A "branching" diagram that is used to break any broadgoal into increasingly detailed levels of actions. Often used

along with brainstorming or during projectmanagement/planning.

Trend Chart

See Run chart.


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Value adding activities

Steps/tasks in a process that meet all three criteriadefining value as perceived by the external customer:

Transforms the item/service toward completion

Customer cares (willing to pay for it)

Done right the first time

A project team may suggest improvement ideas to bringtheir current process closer to the ideal process comprised

only of value-adding activities.

Value-enabling activities

Steps/tasks in a process allowing work to move forward;can also be viewed as necessary steps that are notthemselves adding value but that contribute to the deliveryof the product or service. Examples include selecting new

employees, purchasing supplies, and balancing the books.

Variation

Changes or fluctuations that determines how stable orpredictable a process may be; affected by environment,people, equipment, methods, measurements, andmaterials; any improvement should reduce or eliminatevariation.

Voice of the Customer (VOC)

A systematic approach to gather and analyze customerrequirements, expectations, level of satisfaction anddissatisfaction. Methods of gathering Voice of the


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Customer include complaints, surveys, comments, marketresearch, focus groups and interviews. Voice of theCustomer should drive the process improvement or re-

design efforts, and is a key data source in the projectselection process.

WACC

Weighted Average Cost of Capital used to compare thevalue of 2 or more potential projects. Discount rate used infinancial analysis. Represents the average cost for acompany to finance itself from equity and debt. In 2002,

this rate will be 12%, and will be used for all SIXSIGMAprojects and locations.

Web-based Event (Required & Optional BestPractices)

Kick-off communication from the Export team (Black Belt,Project Team Leader, Sponsor and members), to the

transfer Team(s) featuring a well documented presentationof their Best Practice project. The event takes place on theWeb, in a Synchronous format (participation to a liveevent) or Asynchronous format (review of a recordedevent).

Yield

Total number of units handled correctly through theprocess step(s), typically expressed as a percentage.Yield simply indicates how many items were delivered atthe end of the process with no defect.


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iDMAIC

iDMAIC stands for "Innovation DMAIC". iDMAIC is amethodology designed to ensure consistent and rapid

transfer of innovation throughout Starwood. Innovationscan be DMAIC projects, Quick Hits, or other StarwoodInnovations. An iDMAIC project starts with a solution. Thissolution addresses a problem or opportunity that aproperty has in common with an exporting property. Mosttools and documents in iDMAIC are the same but they'reused in a different sequence than in DMAIC; the reason

for this is that the process improvements in iDMAIC arenot created but rather translated and transferred toanother property quickly. Some tools will apply to alltransfer projects while others will depend on the tools usedin the export project.

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