1. Quantify Opportunity Six Sigma Foundations Continuous Improvement Training Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

2. What is Quantify Opportunity? Aim of this Module Finalize with the Champion - the Charter goal, team, budget benefits, schedule … based on facts and understanding S,C,N Aim of this Module Finalize with the Champion - the Charter goal, team, budget benefits, schedule … based on facts and understanding S,C,N

3. What is Quantify Opportunity?  Process  Agree with the team the key X’s  Identify which the team can control  Share how much the team can control Y  Share the Vision of how much the team will manipulate the key X’s to control Y  Finalize with the Champion the Charter – goal, team, budget benefits, schedule.  Process  Agree with the team the key X’s  Identify which the team can control  Share how much the team can control Y  Share the Vision of how much the team will manipulate the key X’s to control Y  Finalize with the Champion the Charter – goal, team, budget benefits, schedule.

4. SCN : Standard, Control, Noise  Of the causes Quantified and Verified we now categorize them into S,C,N - standard, control or noise.  The purpose is to agree to focus on which X’s can be changed and how much Y can be changed  Of the causes Quantified and Verified we now categorize them into S,C,N - standard, control or noise.  The purpose is to agree to focus on which X’s can be changed and how much Y can be changed

5. SCN – Definitions  Standard will not significantly change during project  Control may change during project and the team can choose its level  Noise everything else

6. SCN – Definitions ‘…give me the courage to change the things I can change, the patience to accept the things I can’t change, and the wisdom to know the difference…’

7. SCN Relation to SIPOC  You would expect to find in SIPOC’s input column the X’s that contribute the largest effects on Y  Further the Control types are typically those Inputs for whom the Supplier is a member of your project team  Clearly the presence of suppliers of key inputs on your team will increase the scope of your control  You would expect to find in SIPOC’s input column the X’s that contribute the largest effects on Y  Further the Control types are typically those Inputs for whom the Supplier is a member of your project team  Clearly the presence of suppliers of key inputs on your team will increase the scope of your control

8. Regression Example  The example is the relationship of the cost of paint compared to the area of a skid.  If there is a practical benefit to making more accurate predictions consult your black belt.  The example is the relationship of the cost of paint compared to the area of a skid.  If there is a practical benefit to making more accurate predictions consult your black belt. Predictive Equation

9. 807060 60 50 40 X Strong Linear 53.552.551.550.549.548.547.546.5 55 54 53 52 51 50 49 48 47 46 45 X1 No Relationship 55545352515049484746 55 54 53 52 51 50 49 48 47 46 45 Moderate Linear 0102030405060708090100 4.5 5.0 5.5 6.0 Strong Non-Linear Examples of Variable Relationships

10. Questions: Is There Any Evidence That Horsepower And Miles Per Gallon Are Related? How About Horsepower And Acceleration? 1101009080706050 25 20 15 10 1101009080706050 45 40 35 30 25 20 Horsepower Generating Scatter Plots Cars82.mtw Horsepower MPG Acceleration

11. Quantify Opportunity Six Sigma Foundations Continuous Improvement Training Six Sigma Foundations Continuous Improvement Training