1 Six Sigma Green Belt Selecting & Implementing Countermeasures Sigma Quality Management

2 Six Sigma Green Belt Selecting Countermeasures - Roadmap Identify the possible countermeasures Plan to implement the countermeasures Evaluate and select the best countermeasures To: Execute the Countermeasures Analyze Root Causes/Process Variables

3 Six Sigma Green Belt Generating Countermeasures  Attacking the Causes  Long Lasting Improvements  Temporary Fixes  Don’t Reinvent the Wheel  Phased Implementation  Error proofing vice Inspection

4 Six Sigma Green Belt Cost/Benefit Analysis  Quantifying Benefits  Quantifying Costs

5 Six Sigma Green Belt “Gozzinta’s & Goesoutta’s” Sources of Cash Benefits:  Cash received as a result of sales,  Cost reductions (when a more efficient process replaces a less efficient one, or from tax benefits),  Cash received when replaced equipment is sold, and  Cash received from salvage value of equipment, plant or facility at end-of-life. Sources of Cash Payments:  Initial cost of the investment (capital cost),  Capital improvements made during the life of the equipment/plant/facility,  Operating costs, such as wages, materials, energy, taxes and maintenance.

6 Six Sigma Green Belt Cash Flow

7 Six Sigma Green Belt Valuing Different Proposals Benefit Cost Ratio: Calculate the Ratio of Net Benefits to the Investment: Benefit Cost Ratio = ($ )/$2615 = $3779/2615 = 1.45 Payback Period: Calculate the time required for the annual net benefits exceed the initial investment cost: Payback Period = Investment/Average Yearly Net Benefit = $2615/756 = 3.5 Years Annual Worth Present Worth Rate of Return

8 Six Sigma Green Belt Cost Types

9 Six Sigma Green Belt Countermeasure Matrix

10 Six Sigma Green Belt Selling the Countermeasures

11 Six Sigma Green Belt Barriers & Aids Analysis Barriers Aids Cost to implement Savings Fear of change Fixing old problems Lack of experience Learning something new

12 Six Sigma Green Belt Action Planning

13 Six Sigma Green Belt Executing Countermeasures - Roadmap Implement the Action Plan Check Results – Plan and Performance Monitor Progress of Implementation To Standardize/ Replicate Countermeasures

14 Six Sigma Green Belt Tracking Results Change Results (Process Output): Your Factor’s Effect: Change “External” Factor’s Effect: Time # Defects Countermeasures Implemented

15 Six Sigma Green Belt Before/After Pareto

16 Six Sigma Green BeltStandardization/Replication  Standardization Methods  Replication of Improvements – Leveraging Your Work