UNIT 2

THE SCOPE OF TOOLS AND TECHNIQUES

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IPO – INPUT PROCESS
OUTPUT Diagram

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 SIPOC Diagram

A SIPOC diagram is a tool used by a team to identify all relevant elements of a process
improvement project before work begins. It helps define a complex project that may not be well
scoped, and is typically employed at the Measure phase of the Six Sigma DMAIC (Define,
Measure, Analyze, Improve, Control) methodology. 

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FLOW DIAGRAM

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 Critical to Quality Tree (also known as a CTQ Tree)
A Critical to Quality Tree (also known as a CTQ Tree) is a Six Sigma
tool used to identify the needs of the customer and translate that
information into measurable product and process requirements. It
allows organizations to understand the characteristics of a product or
service that most drives quality for customers.
Need –  What customer need are you fulfilling with your product or service?
Drivers – What elements or characteristics will your customers mostly likely
consider when judging the quality of your product or service?
Requirements – What process or product requirements are needed to make those
drivers meet customer standards?

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 Project Charter
What is a project charter in project management?
A project charter is a formal, typically short document that describes your project in its entirety
including what the objectives are, how it will be carried out, and who the stakeholders are. It is a
crucial ingredient in planning out the project because it is used throughout the project lifecycle.
The project charter typically documents:
 Reasons for the project
 Objectives and constraints of the project
 Who the main stakeholders are
 Risks identified
 Benefits of the project
 General overview of the budget

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 PROCESS MAPPING
Process maps are a vital way of understanding the interactions of related
sequential actions. They are integral to any business, and for Lean Six Sigma
projects they are essential.
• For example, through correct mapping of a process, we can assess the validity
of the sequence and number of steps present. A operation may be incorrectly
organized, or a certain step could be duplicated, or missing altogether! By
correctly mapping a process a vantage point to assess the process can be
obtained.
Types
1.Basic Process Map
2. Complex Business Process Maps
Regression analysis
Regression analysis is a powerful statistical method that allows you to examine
the relationship between two or more variables of interest. While there are
many types of regression analysis, at their core they all examine the influence
of one or more independent variables on a dependent variable.
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What is PESTLE Analysis? PESTLE analysis, which is sometimes
referred as PEST analysis, is a concept in marketing principles.
Moreover, this concept is used as a tool by companies to track the
environment they’re operating in or are planning to launch a new
project/product/service etc.
PESTLE is a mnemonic which in its expanded form denotes P for
Political, E for Economic, S for Social, T for Technological, L for Legal
and E for Environmental.
It gives a bird’s eye view of the whole environment from many
different angles that one wants to check and keep a track of while
contemplating on a certain idea/plan.
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Five whys (or 5 whys) is an iterative interrogative technique used to explore the cause-and-
effect relationships underlying a particular problem. The primary goal of the technique is to
determine the root cause of a defect or problem by repeating the question "Why?". Each
answer forms the basis of the next question.
How to Use the 5 Whys
1. Assemble a Team
2. Define the Problem
3. Ask the First "Why?"
4. Ask "Why?" Four More Times
5. Know When to Stop
6. Address the Root Cause(s)
7. Monitor Your Measures

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 OVERALL EQUIPMENT EFFECTIVENESS

OEE (Overall Equipment Effectiveness) is the gold standard for measuring manufacturing productivity. Simply put
– it identifies the percentage of manufacturing time that is truly productive. An OEE score of 100% means you are
manufacturing only Good Parts, as fast as possible, with no Stop Time. In the language of OEE that means
100% Quality (only Good Parts), 100% Performance (as fast as possible), and 100% Availability (no Stop Time).

Measuring OEE is a manufacturing best practice. By measuring OEE and the underlying losses, you will gain
important insights on how to systematically improve your manufacturing process. OEE is the single best metric for
identifying losses, benchmarking progress, and improving the productivity of manufacturing equipment (i.e.,
eliminating waste).

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 TRIZ (Theory of Inventive Problem Solving)
Beginning in 1946 and still evolving, TRIZ was developed by the Soviet inventor Genrich
Altshuller and his colleagues. TRIZ in Russian = Teoriya Resheniya Izobretatelskikh Zadatch or
in English, The Theory of Inventive Problem Solving. However it is not a Theory - it is a big
toolkit consisting of many simple tools - most are easy to learn and immediately apply to
problems. This amazing capability helps us tackle any problem or challenge even when we face
difficult, intractable or apparently impossible situations. 

TRIZ helps us keep detail in its place, to see the big picture and avoid getting tripped up with
irrelevance, waylaid by trivial issues or seduced by premature solutions.
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Mistake proofing, or its Japanese equivalent poka-yoke (pronounced PO-ka yo-KAY), is the use of any
automatic device or method that either makes it impossible for an error to occur or makes
the error immediately obvious once it has occurred. It is a common process analysis tool.

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A value stream map is a visual tool that displays all critical steps in a specific process and
quantifies easily the time and volume taken at each stage. Value stream maps show the
flow of both materials and information as they progress through the process.

Many lean practitioners see Value Stream Mapping as a central tool to detect waste, cut
process cycle times, and implement process improvement. However, Value Stream Map
(VSM) is not designed to address problems at a detailed level, where many factories
implement it greatly but can’t seem to achieve lean.

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Force Field Analysis is a method for listing and evaluating the forces for and against an situation. It helps you analyze all of the
forces that have an influence on the current situation. Human behavior is caused by forces – beliefs, expectations, cultural
norms, etc.
https://www.youtube.com/watch?v=64t_NIAG2QY

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 What is a Gantt Chart?
Many people have never heard of a Gantt. Simply put, a Gantt chart is a visual view of tasks
scheduled over time. Gantt charts are used for planning projects of all sizes and they are a
useful way of showing what work is scheduled to be done on a On a Gantt chart you can easily
see:
The start date of the project
What the project tasks are
Who is working on each task
When tasks start and finish
How long each task will take
How tasks group together, overlap and link with each other
The finish date of the project.
day. They also help you view the start and end dates of a project in one simple view.
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What is Radar (Spider/Web/Polar Bar) Chart?
Suppose you were asked to rank your favorite beer on 8 aspects
(Sourness, Bitterness, Sweetness, Saltiness, Yeast, Hop, Malt and Special
Grain) and then show them graphically, you might use a Column Chart for
it.
But when there are a large number of variables (8 in this case), the
Column Chart might look cluttered. In such scenarios, try the Radar Chart
instead!
A Radar Chart, also called as Spider Chart, Radial Chart or Web Chart, is a
graphical method of displaying multivariate data in the form of a two-
dimensional chart of three or more quantitative variables represented on
axes starting from the same point. 
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The milestone chart template as a simpler way to illustrate, schedule and
report your project. A milestone chart will provide a snapshot of your project
for important presentations and communications with management or
customers.
Milestone charts can be used to illustrate the key events, objectives and targets
of any project or plan. This makes the milestone template an excellent tool for
planning projects or managing programs where visualizing the key components
need to be displayed in chronological order on a time schedule. The free
milestone chart should be used for top level reviews. It was made for reporting
to management and clients, or any audiences who should not be overwhelmed
with the detailed minutia of the plan or project.

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Earned Value Management (EVM) helps project managers to measure project
performance. It is a systematic project management process used to find
variances in projects based on the comparison of worked performed and
work planned. EVM is used on the cost and schedule control and can be very
useful in project forecasting.

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techniques in the Control Costs process,When you use EVM formulas, you’re measuring and analyzing how far off your project is from your plan.Take a look at the 9 formulas to understand how to ev

Earned value management – EVM:

1- BAC-  Budget at Completion:
Formula Budget at Completion (BAC): No formula – it’s the project budget
What it says: How much money you will spend on the project
Why you use it: To tell the sponsor the total amount of value that he’s getting for the project
2- PV- Planned Value:
Formula: Planned Value (PV) = budget at Completion (BAC) x Planned % Complete
3-What
EV-Earned Value:
it says: What your schedule says you should have spent
Why youEarned
Formula: use it: Value
To figure
(EV)out what value
= budget your plan says
at Completion (BAC)you should have
x Actual% delivered so far
Complete
What it says: How much of the project’s value you’ve really earned
Why you use it: EV lets you translate how much work the team s finished into a dollar value
4- AC-Actual Cost:
Formula: Actual Cost (AC) = No formula What you’ve actually spent on the project
What it says: How much you’ve actually spent so far
5- SPl- Schedule Performance Index:
Why you use it: The amount of money you spend doesn’t always match the value you get
Formula: Schedule Performance Index (SPl) =Earned Value (EV) / Planned Value (PV)
What it says: Whether you’re behind or ahead of schedule
6- SV- Schedule Variance:
Why you use it: To figure out whether you’ve delivered the value your schedule said you would
Formula: Schedule Variance (SV) =Earned Value (EV) – Planned Value (PV)
What it says: How much ahead or behind schedule you are
7- CPI- Cost Performance Index:
Why you use it: This puts a dollar value on exactly how far ahead or behind schedule you are
Formula: Cost Performance Index (CPI) =Earned Value (EV) / Actual Cost (AC)
What it says: Whether you’re within your budget or not.
8- TCPI- To Complete Performance Index: Why you use it: Your sponsor is always most interested in the bottom line!
Formula: To Complete Performance Index (TCPI) =(Budget at Completion (BAC) – Earned Value (EV) ) / (Budget at Completion (BAC) -Actual Cost (AC) )
What it says: How well your project must perform to stay on budget.
9- CV- Cost Variance:
Why you use it: This will let you forecast whether or not you can stick to your budget.
Formula: Cost Variance (CV) = Earned Value (EV)  -Actual Cost (AC)
What it says: How much above or below your budget you are
Why you use it: Your sponsor needs to know how much it costs to get him the value you deliver.

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An Activity Network Diagram (AND) is also called an Arrow Diagram (because the pictorial
display has arrows in it) or a PERT (Program Evaluation Review Technique) Diagram, and it
is used for identifying time sequences of events that are pivotal to objectives. 
Activity Network Diagrams started out as an engineering and construction project
management tool. Critical Path Analysis draws on this methodology to identify and
standardize medical management activities.
An Activity Network Diagram helps to find out the most efficient sequence of events
needed to complete any project. It enables you to create a realistic project schedule by
graphically showing
the total amount of time needed to complete the project
the sequence in which tasks must be carried out
which tasks can be carried out at the same time
which are the critical tasks that you need to keep an eye on.
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