6σ

Lean Six Sigma

Engr. Delfin R. Jacob
Professional Industrial Engineer
Six Sigma Champion
What is Quality?
▫ It is the totality of characteristics of a particular
product or service that bares an ability to satisfy the
needs of the customers.

▫ It has been heard not only in manufacturing but all types

of company.

▫ It is all about improving processes, products, and

services.

▫ Quality methodologies are focused on eliminating

defects and the root of those defects.
Brief Evolution of Quality

Taking Create

Proactive Quality
Reactive Quality

defectives process
out of that will
what was produce
produced less or no
defects
Quality and Business Finances

Quality
• Satisfying Customers
• Running processes
Drives
at greater efficiency Financial
• Producing less waste
• Increasing Business
Benefits
Productivity
Segments of Quality
Capability
Methodologies Standards
Models

Six
Sigma
ISO CMMI
Lean
Sharing benchmarked
Scientific way to Best practices to build
practices -
improve capability capabilities
Standardization
What is Lean Six Sigma?
Combined 2 industry concepts:
• Lean
• Six Sigma

Combines problem solving tools:

Kanban Visual Value ANOVA DFSS

Kaizen Mgt.
Stream
5S Mapping DOE MSA
SPC
Setup Root Cause
JIT - Pull Reduction Hypothesis
Testing Analysis
Lean
• Focus on what is of VALUE to the customer
• Separate non-value added from value added
▫ Map the actions required to produce (value stream)
▫ Eliminate activities that do not move the product
closer to its final form
• Make the remaining value added activities flow
smoothly
• Produce only what customers need (pull)
• Continuous improvement
Which is the better airline ticket?
Traveling to Groton, London

Ticket A Ticket B
• $500 round trip • $650 round trip
• 6 hours • 3 hours
• 3 layovers • 1 layover
• Arriving in NYC • Arriving in Groton/New
London

What does value mean to you?

Lean Philosophy
Value
▫ More to value than just cost
▫ “Defined by the ultimate customer” – Womack
 Voice of the Customer (VOC)
▫ Expressed in terms of
 A specific product
 A function or capability
▫ Questions
 What does the customer want to buy?
 What would they pay extra for?

Focus on what is of VALUE to the customer

Types of Activities
Value-Added
▫ Brings product closer to it’s final form
▫ Changes the form, fit or function
▫ An activity the customer is willing to pay for
Non-Value-Added
▫ Does not contribute to bringing the product to it’s final form
▫ Doesn’t improve the form, fit, or function of the product or service
on the first pass through the process.
▫ An activity the customer is not willing to pay for
▫ Waste

Separate non value added from value added

Steps are wasteful, people are valuable
9 Categories of Waste in Processes
D efects
O verproduction
W aiting
N ot utilizing people’s talent
T ransporting
I nventory
M otion
E xcess Processing
+
A ttitude
DEFECTS
Examples Effect Tools/Solutions
• Errors • Re-work • Pareto Charts
• Not following • Lost opportunity • Proper Feedback
procedures and quality • Poor Service • Develop Consistency
guidelines • Non-compliance • Quick Checks
• Bottlenecks • Poke Yoke
• Creates frustration/ • Training
stress
OVERPRODUCTION
Examples Effect Tools/Solutions
• Significant time on • WIP • Triage
tasks that do not take • Lost capacity • “Managing the front
precedence • Bottlenecks Door”
• Prioritizing the wrong • Strained employees
projects
WAITING
Examples Effect Tools/Solutions
• Non-value added • Increased costs • Analyze process
time • Lost capacity steps
• Productive output is • Bottlenecks • Level-loading work
not being performed • “Learning Curve” responsibilities
• Cross-training
NOT UTILIZING PEOPLE’S TALENTS
Examples Effect Tools/Solutions
• Higher skilled people • Job dissatisfaction • Understanding the
performing lower • Employee turnover VOC and your people
skilled work • Increased costs • Staff A-B-C matrix
• Not maximizing staff • Limited value to • Training &
strengths citizens Development
• Failing to cultivate • Bottlenecks • Creating team culture
staff ideas for
improvement
TRANSPORTING
Examples Effect Tools/Solutions
• Poor office design - • Longer cycle time • Value stream maps
not accounting for work • Increased costs • Creating work cells/
teams and flow • Lost capacity teams for high volume
• Not properly service areas
leveraging technology • Properly leveraged
(e.g. electronic technology
documents) • Spaghetti Diagram
INVENTORY
Examples Effect Tools/Solutions
• Filled inboxes • Stress • 5S and Visual
• Backlog in email • Low throughput Management
inbox • Poor service • Triage workflow
• WIP • Bottlenecks • Performance goals
• Supply storage
MOTION
Examples Effect Tools/Solutions
• “Search parties” in • Longer cycle time • Evaluating workflow
the office • Increased costs • Properly set up work
• Forms/Supplies • Chaos centers
centrally located
• Trips to
printer/copiers
EXCESS PROCESSING
Examples Effect Tools/Solutions
• Performing more • Non-value added • Understanding the
work than necessary project time VOC
• Over-documentation • Increased costs • Use 80-20 rule for
• Creating “works of • Lost capacity getting work done
art” • Bottlenecks • Training/Development
ATTITUDE
Examples Effect Tools/Solutions
• Whether you think • Redundant • Performance
you can or can’t, discussions metrics that promote
you’re right • Inaction to pressing the right behaviors
• Not respecting issues
needs of the citizens • Inefficient, low
quality work
Group Exercise on 9 Wastes
per Table or Group of at least 5
Waste Example Effect
• Defect • •

• Over Production • •

• Waiting • •

• Not Utilizing People’s • •

Talents

• Transporting • •
Group Exercise on 9 Wastes
per Table or Group of at least 5
Waste Example Effect
• Inventory • •

• Motion • •

• Excess Processing • •

• Attitude • •
How Does Lean Solve Problems?
• Focuses on what is of VALUE to the customer
▫ Understand customer expectations and
requirements
▫ In terms of the what the product provides, not
just the product itself
• Eliminates activities that do not move the
product closer to it’s final form
▫ Reduces the 8 types of waste
• Creates continuous flow
What is Six Sigma?
• It is a methodology for:
▫ improving business and organizational performance.
▫ continuous improvement.
▫ creating products/ processes that perform at high
standards.

• It is a Quality Philosophy and a management

technique.
• It is a measure of quality that strives for near
perfection.
• It is well rooted in mathematics and statistics.
What is Six Sigma?
• Six Sigma Performance – is a statistical term for a process
that produces fewer than 3.4 DPMO.

• Six Sigma Defect – is any output that does not meet

customer satisfaction or that could lead to outputs that
does not meet customer qualifications.

• Six Sigma Improvement – is when key outcomes of a

business or work process are improved dramatically.

• Six Sigma Deployment – is a prescriptive rollout of the Six

Sigma methodology across an organization.

• Six Sigma Organization – is an organization that uses Six

Sigma methods and tools to improve performance.
• (lowering costs|maximizing revenues|improve customer satisfaction|increase capacity and
capability|reduce complexity|shorten cycle time|minimize errors or defects)
What is Sigma?

•σ - is a Greek letter and stands for standard

deviation in statistics.

• Standard Deviation - is a statistical way to describe how

much variation exists in a set of data, a group of
items, or a process.
 Six Sigma as a Metric
2
   ( xi  x )
=
Sigma =  = Deviation n 1
( Square root of variance )

Axis graduated in Sigma

-4
-6

-3
-2
-5

0
-7

6
4
2
3

5
-1

7
1
between + / - 68.27 % result: 317300 ppm
1 outside (deviation)
between + / - 95.45 % 45500 ppm
2
between + / - 99.73 % 2700
3
ppm
between + / - 99.9937 % 63
4 ppm
between + / - 5 99.999943 % 0.57 ppm

between + / - 99.9999998 % 0.002

6 ppm
What is Sigma?
1. What does “Six Sigma” mean?
a. A process that has a six sigma level of quality
experiences only three defects per one million
opportunities.
2. Is it Important to have a six sigma level of
quality?
a) It depends on the customers perception of
quality. If you are landing airplanes, it is critical
to obtain at least a six sigma level of quality. If
you are manufacturing coffee stirrers, lower
levels of quality may be completely acceptable.
What is Sigma?
• Sigma Scale – is a universal measure of how well a
critical characteristic perform compared to its
requirements.

Sigma Scale
Sigma Percent Defective Defects per million
1 69% 691,432
2 31% 308,538
3 6.7% 66,807
4 0.62% 6,210
5 0.023% 233
6 0.00034% 3.4
7 0.0000019% 0.019
Sigma Level Improvements
3 Sigma 4 Sigma
How
•
Good is Good Enough?
93.3193% Accurate
•
133,600 lost letters per hour
99.379% Accurate
12,420 lost letters per hour
• 33,400 incorrect surgical operations per • 3,100 incorrect surgical operations per
week week
• 13 short or long landings at most major • 1 short or long landing at most major
airports each day airports each day
• 1,336,000 wrong prescriptions each year • 124,200 wrong prescriptions each year

5 Sigma 6 Sigma
99.9767% Accurate 99.99966% Accurate
• 466 lost letters per hour • 6.8 lost letters per hour
• 117 incorrect surgical operations per week • 1.7 incorrect surgical operations per week
• 17 short or long landings every year at • 1 short or long landing every 5 years at
most major airports most major airports
• 4,660 wrong prescriptions each year • 68 wrong prescriptions each year

11
What is Sigma?
• Example (case)
• According to your contract with your customers,
pizzas will be delivered fresh and hot between
11:45 a.m. and 12:15 p.m.
• You have also agreed that if a pizza is delivered
before 11:45 or after 12:15 (a “defect”), you will
discount their next order by 35 percent.
• Because you and your staff people get a bonus
for on-time delivery, you are all very motivated
to deliver the pizzas during the half-hour
window the customers want.
What is Sigma?
• Example (Six Sigma Shop)
• If you deliver only about 68 percent of your
pizzas on time, your process is at only a “2
sigma” level.
• If you deliver 93 percent on time, which
sounds good, you are operating at only a “3
sigma” level of performance.
• If you get 99.4 percent of them there on time,
you’re operating at “4 sigma.”
What is Sigma?
• Example (Six Sigma Shop)
• You would have to have on time pizza delivery
99.9997 percent of the time!

• That’s practically perfect.

• In fact, for every million pizzas you make,

you’d end up with only three or four late
deliveries.
 What is Sigma?
LOLX Pizza Company
Hawaiian Pizza
Php400.00 Late Deliveries (discount to customers: Php140.00

1,000,000 orders of pizza per month

NEXT DELIVERY

Late Discount to
Sigma % Defective Sales Net Sales LOSS
Deliveries Customers

1 69% 690000 Php96,600,000 Php400,000,000 Php303,400,000 -Php96,600,000

2 31% 310000 Php43,400,000 Php400,000,000 Php356,600,000 -Php43,400,000
3 6.70% 67000 Php9,380,000 Php400,000,000 Php390,620,000 -Php9,380,000
4 0.62% 6200 Php868,000 Php400,000,000 Php399,132,000 -Php868,000
5 0.023% 230 Php32,200 Php400,000,000 Php399,967,800 -Php32,200

6 0.00034% 3.4 Php476 Php400,000,000 Php399,999,524 -Php476

7 0.0000019% 0.019 Php2.66 Php400,000,000.00 Php399,999,997.34 -Php2.66
What is Sigma?
@ 3.8 Sigma (99%) GOOD @ 6 Sigma (99.9997%) VERY GOOD

20,000 lost articles of mail per hour Seven articles lost per hour

Unsafe drinking water for almost 15 One unsafe minute every seven
minutes each day months

5,000 incorrect surgical operations

1.7 incorrect operations per week
per week

Two short or long landings at most One short or long landing every five
major airports each day years

200,000 wrong drug prescriptions

68 wrong prescriptions per year
each year

No electricity for almost seven hours One hour without electricity every
each month 34 years
Defects per Million Opportunity
A six sigma project with an objective of reducing defects in financial
auditing process is about to be completed. Below are the data
gathered before the project and after the solutions have been
implemented:

Measures Data (Nov to Apr) Data (May)

Total No. of Transactions 60,000 12,000
Total No. of Defects 20,000 1,500
Total No. of Defects Opportunity /Unit 10 10

What is the current (May) Defects per Million Opportunity (DPMO)?

Defects per Million Opportunity
A six sigma project with an objective of reducing defects in financial
auditing process is about to be completed. Below are the data
gathered before the project and after the solutions have been
implemented:

Measures Data (Nov to April) Data (May)

Total No. of Transactions 60,000 12,000
Total No. of Defects 20,000 1,500
Total No. of Defects Opportunity /Unit 10 10

What is the current (May) Defects per Million Opportunity (DPMO)?

Answer: 12500
DPMO = (1500/10) x (1,000,000/12,000) = 12,500
Individual DPMO Exercise 1
A six sigma project with an objective of reducing defects in financial
auditing process is about to be completed. Below are the data
gathered before the project and after the solutions have been
implemented:

Measures Data (Nov to Apr) Data (May)

Total No. of Transactions 60,000 12,000
Total No. of Defects 20,000 1,500
Total No. of Defects Opportunity /Unit 10 10

What is the Defects per Million Opportunity (DPMO) from Nov to April?
Individual DPMO Exercise 1
A six sigma project with an objective of reducing defects in financial
auditing process is about to be completed. Below are the data
gathered before the project and after the solutions have been
implemented:

Measures Data (Nov to Apr) Data (May)

Total No. of Transactions 60,000 12,000
Total No. of Defects 20,000 1,500
Total No. of Defects Opportunity /Unit 10 10

What is the Defects per Million Opportunity (DPMO) from Nov to April?

Answer: 33333
DPMO = (20000/10) x (1,000,000/60,000) = 33333
Individual DPMO Exercise 2
A six sigma project with an objective of reducing defects in financial
auditing process is about to be completed. Below are the data
gathered before the project and after the solutions have been
implemented:

Measures Data (Nov to Apr) Data (May)

Total No. of Transactions 60,000 12,000
Total No. of Defects 20,000 1,500
Total No. of Defects Opportunity /Unit 10 10

What is the Defects per Million Opportunity (DPMO) from Nov to May?
Individual DPMO Exercise 2
A six sigma project with an objective of reducing defects in financial
auditing process is about to be completed. Below are the data
gathered before the project and after the solutions have been
implemented:

Measures Data (Nov to Apr) Data (May)

Total No. of Transactions 60,000 12,000
Total No. of Defects 20,000 1,500
Total No. of Defects Opportunity /Unit 10 10

What is the Defects per Million Opportunity (DPMO) from Nov to May?

Answer: 29861
DPMO = (21500/10) x (1,000,000/72,000) = 29861
Six Sigma Objectives
• It gives you discipline, structure, and a
foundation for solid decision-making based on
simple statistics.

• It seeks to improve the quality of process

outputs.

• Remove the causes of defects (errors)

• Minimize variability in manufacturing and

business processes.
Brief History of Six Sigma

The one who invented Six Sigma

• The term “Six Sigma” was coined by Bill Smith, an

engineer with Motorola
• Late 1970s - Motorola started experimenting with
problem solving through statistical analysis
• 1987 - Motorola officially launched it’s Six Sigma program
Brief History of Six Sigma

The one who perfected Six Sigma

• Jack Welch launched Six Sigma at GE in Jan,1996

• 1998/99 - Green Belt exam certification became the
criteria for management promotions
• 2002/03 - Green Belt certification became the criteria
for promotion to management roles
Brief History of Six Sigma
• Six Sigma is heavily inspired by six decades of Quality
Management Concepts such as TQM and Zero-
Defects.

• It is also based on the works of Shewhart, Deming,

Juran, Ishikawa, Taguchi, and others.
Six Sigma Organizations
Six Sigma Organizations
Radical Corporate Success
• General Electronics
▫ Profited between $7 to $10 billion from Six Sigma in 5 years

• Dupont
▫ Increased its income from $1 to $2.4 billion from Six Sigma

• Bank of America
▫ Cut Cycle times in half, saved millions of dollars, reduced number
of processing errors

• Honeywell
▫ Had $2 billion savings with the help of Six Sigma

• Motorola
▫ Saved $2.2 billion in 4 years and $15 billion since the start of Six
Sigma
Management System Orientation
• Clear Value Proposition and ROI
▫ Six Sigma project can improve business
characteristic by 70 % or more, stimulating
increased operating margins for businesses.
▫ Six Sigma initiatives and projects have a direct,
measurable financial focus and impact.

• Top Commitment and Accountability

▫ Six Sigma Initiatives begins at the top.
▫ Management members must be personally
accountable for achieving the performance
improvement goals they set for their respective
organizations and business units
Management System Orientation
• Customer Focus
▫ Through its voice of customer tools, drives
business processes through customer
requirements.

• Connected Business Metrics

▫ Six Sigma management systems include
performance measures that are readily
accessible and visible to everyone whose
actions or decisions determine performance levels
and operational quality.
Management System Orientation
• Process Orientation
▫ It improves performance of processes.
▫ This is the focal point of using Six Sigma to
improve performance: design,
characterization, optimization, and validation of
processes.

• Enabling tools and technology

▫ Six Sigma projects require simultaneous
management of processes, data banks, training
activities, and people.
It is not for the faint of heart nor
for unprepared organization.

Intense and Rigorous

Thorough inspection of the way

everything is done.

Sets ambitious business objectives

and measures performance in a way that
forces accountability.

Exposes wastes that are largely

invisible in an organization.

Takes an organization out of its

comfort zone.

Training costs ranges from P20,000 –

P250,000 ($400-$5000)
Methods of Six Sigma
Define

Control Measure

Improve Analyze

DMAIC Method
Methods of Six Sigma

DMAIC Method
What is DMAIC ?
• A logical and structured approach to problem solving and
process improvement
• An iterative process (continuous improvement)
• A quality tool with focus on change management
DMAIC Approach
Practical
Problem

Statistical
Problem

Statistical
Solution

Practical
Solution
DMAIC Methodology
D Identify and state the practical problem
Define

Validate the practical problem by collecting data

M
Measure
Convert the practical problem to a statistical one, define
A statistical goal and identify potential statistical solution
Analyze

I Confirm and test the statistical solution

Improve

C Convert the statistical solution to a practical solution

Control
Statistical and Mathematical Program
Packages for Six Sigma
• Actuate • Quality Companion by Minitab

• ARIS Six Sigma • SigmaXL

• CHARTrunner by PQ Systems • SigmaFlow

• EngineRoom by MoreSteam • Software AG webMethods BPM Suite

• IBM WebSphere Business Modeler • Statgraphics

• iGrafx Process for Six Sigma • STATISTICA

• i-nexus • Telelogic System Architect

• JMP • The Unscrambler

• Oracle Crystal Ball Microsoft Visio • Select Architect Business Process Modeling

• Minitab

• QPR ProcessGuide by QPR Software

Tools in Six Sigma
• 5 Whys • Failure mode and effects analysis
• Analysis of variance (FMEA)
• Histograms • General linear model
• ANOVA Gauge R&R • Quality Function Deployment
• Axiomatic design (QFD)
• Business Process Mapping • Pareto chart
• Catapult exercise on variability • Pick chart
• Cause & effects diagram (also • Process capability
known as fishbone or Ishikawa • Regression analysis
diagram) • Root cause analysis
• Chi-square test of independence • Run charts
and fits • SIPOC analysis
• Control chart • Stratification
• Correlation • Taguchi methods
• Cost-benefit analysis • Taguchi Loss Function
• CTQ tree • TRIZ
• Quantitative marketing research
through use of Enterprise Feedback
Management (EFM) systems
• Design of experiments
Belts
Executive
Leadership

Champion

Master Belts

Black Belts

Green Belts

Yellow Belts

Project Team Members

Belts
Belts
Belts
Project Responsibilities
Six Sigma – Three Dimensions
Customer Process A Process B Vendor

Define Measure Analyze Improve Control

Driven
by
customer
needs
Process Map Analysis
LSL US
L
Methodology
Led by
Senior
Mgmt
••••••••
Upper/Lower
specification
• • •
Organization Tools
limits
••••••••••••
Regression

35 100%
30
80%
25
20 60%
15 40%
10
20%
5
Process variation 0 0%

Enabled by quality
L K A F B C G R D

team.
Frequency Cumulative Frequency

Pareto Chart
Great Truths About Six Sigma

Nothing can stop automation

Great Truths About Six Sigma

DEADLINE IS DEADLINE!

Don’t set too ambitious deadline.

Great Truths About Six Sigma

Always listen to the market.

Great Truths About Six Sigma

Users don’t like bugs.

Great Truths About Six Sigma

Simulation expertise helps.

Great Truths About Six Sigma

Not every presentation is successful.

Great Truths About Six Sigma

What suits one customer might not suit

the next
Great Truths About Six Sigma

Look for efficient solutions

Great Truths About Six Sigma

Support different situations by specific

tools
Great Truths About Six Sigma

Online help can be useful.

Great Truths About Six Sigma
Which one
Is mine?

Select significant attributes for your

forecaster.
Great Truths About Six Sigma

Math is not everything.

Great Truths About Six Sigma

Use checklists for testing.

Six Sigma Do’s
• Do communicate the commitment company-
wide

• Do demonstrate the commitment of company

leaders

• Do empower your key human resources

• Do provide on-site mentoring for black belts

Six Sigma Do’s
• Do be patient at the inception of you six Sigma
initiative

• Do claim and advertise early “wins”

• Do benchmark

• Do establish project baseline and goals

Summary:
What is Lean Six Sigma?
LSS Exercise
• Get a ¼ sheet of scratch paper or from your
notebook paper. Write your name and the best
answer to each of the following 10 LSS questions .
You are given 1-2 minutes per item.
LSS Exercise
1. The LSS Yellow Belt will be responsible for the sustainability of the improved process after
handing this over to the natural owner of the process.

a. False b. True

2. Lean addresses nine (9) forms of waste in any operations. What are the examples of Lean
wastes?

a. Waiting and Chatting b. Over Production and Receiving

c. Driving and Waiting d. Rework and Idle Time

3. Which among the statements is not true about Six Sigma.

a. Process for Continuous Improvement b. Measurement of Quality

c. Primarily used for Research and Development d. Enabler for Cultural Change
LSS Exercise
4. A process performing at a Six Sigma level would have ____ defects per million opportunities.

a. 2 b. 3.4

c. 0.34 d. 4.3

5. One of the drivers of Cost of Poor Quality (COPQ) is _______________.

a. Sales b. Rework

c. Output d. Quality Assurance

6. A stakeholder in a six sigma project who is responsible for the success of the project and
helps in addressing project obstacles.

a. Six Sigma Yellow Belt b. Six Sigma Champion

c. Finance Manager d. Chief Executive Officer

LSS Exercise
7. A type of waste (Muda) where people are not fully utilized due to the absence of work
or material.

a. Waiting b. Inventory

c. Skills d. Motion

8. A type of waste (Muda) that is defined as incomplete or anything that does not meet
customer requirement.

a. Defect b. Inventory

c. Extra Processing d. Over Production

LSS Exercise
9. A six sigma project with an objective of reducing defects in the financial auditing
process is about to be completed. Below are the data gathered before the project and
after the solutions have been implemented:

Measures Data from November to April Data as of May

Total No. of Transactions 60,000 12,000

Total No. of Defects 20,000 1,500

Total No. of Defects Opportunity/ Unit 10 10

What is the sigma level from November to April?

a. 3.0 b. 3.2

c. 3.3 d. 3.8
LSS Exercise
10. Lean is about improving the variation of the process, hence, achieving customer
satisfaction.

a. True b. False
LSS Exercise
1. The LSS Yellow Belt will be responsible for the sustainability of the improved process after
handing this over to the natural owner of the process.

a. False b. True

Answer: a. False

2. Lean addresses nine (9) forms of waste in any operations. What are the examples of Lean
wastes?

a. Waiting and Chatting b. Over Production and Receiving

c. Driving and Waiting d. Rework and Idle Time

Answer: d. Rework and Idle Time

3. Which among the statements is not true about Six Sigma.

a. Process for Continuous Improvement b. Measurement of Quality

c. Primarily used for Research and Development d. Enabler for Cultural Change

Answer: c. Primarily used for Research and Development

LSS Exercise
4. A process performing at a Six Sigma level would have ____ defects per million opportunities.

a. 2 b. 3.4

c. 0.34 d. 4.3

Answer: b. 3.4

5. One of the drivers of Cost of Poor Quality (COPQ) is _______________.

a. Sales b. Rework

c. Output d. Quality Assurance

Answer: b. Rework

6. A stakeholder in a six sigma project who is responsible for the success of the project and
helps in addressing project obstacles.

a. Six Sigma Yellow Belt b. Six Sigma Champion

c. Finance Manager d. Chief Executive Officer

Answer: b. Six Sigma Champion

LSS Exercise
7. A type of waste (Muda) where people are not fully utilized due to the absence of work
or material.

a. Waiting b. Inventory

c. Skills d. Motion

Answer: a. Waiting

8. A type of waste (Muda) that is defined as incomplete or anything that does not meet
customer requirement.

a. Defect b. Inventory

c. Extra Processing d. Over Production

Answer: a. Defect
LSS Exercise
9. A six sigma project with an objective of reducing defects in the financial auditing
process is about to be completed. Below are the data gathered before the project and
after the solutions have been implemented:

Measures Data from November to April Data as of May

Total No. of Transactions 60,000 12,000

Total No. of Defects 20,000 1,500

Total No. of Defects Opportunity/ Unit 10 10

What is the sigma level from November to April?

a. 3.0 b. 3.2

c. 3.3 d. 3.8

Answer: c. 3.3
LSS Exercise
10. Lean is about improving the variation of the process, hence, achieving customer
satisfaction.

a. True b. False

Answer: b. False
 Thank you.
[email protected]