CSSBB: Certified Six Sigma Black Belt Certification Video Training Course Outline
Organization-Wide Planning and D...
Organizational Process Managemen...
Team Management (BOK III)
Define (BOK IV)
Measure (BOK V)
Analyze (BOK VI)
Improve (BOK VII)
Control (BOK VIII)
Design for Six Sigma (BOK IX)
Organization-Wide Planning and Deployment (BOK I)
CSSBB: Certified Six Sigma Black Belt Certification Video Training Course Info
Gain in-depth knowledge for passing your exam with Exam-Labs CSSBB: Certified Six Sigma Black Belt certification video training course. The most trusted and reliable name for studying and passing with VCE files which include ASQ CSSBB practice test questions and answers, study guide and exam practice test questions. Unlike any other CSSBB: Certified Six Sigma Black Belt video training course for your certification exam.
Organization-Wide Planning and Deployment (BOK I)
6. Relationships among business systems and processes (BOK I.A.3)
Hey, welcome back to this section on business systems. So earlier, we talked about the basic concepts related to Six Sigma and Lean. In Six Sigma, we are looking to improve processes. Here in this section we will try to understand what a system is, what a subsystem is, and how processes and business processes are linked together. So let's go one by one and look at some of the definitions, and then try to understand the concepts behind them. starting with systems. What is a system? So here on this slide, we will try to understand what a system is. As you can see here, system consists ofinterdependent parts forming a complex or intricate whole. So you will have parts. So let's say if this is something which we can callthat as a system, then this will have some parts. These we can call subsystems. But here you see these parts are separate; there's no overlapping between these parts, but that is not a system. In the system, the parts will be interdependent on each other. So there will be some sort of overlapping between subsystems. And these subsystems, which have interdependencies with each other, will form a bigger system, and this system will have a common goal. So if this is the whole system, then this will have a common goal. For example, your organisation is a system; it's a bigger system in that there are subsystems, each consisting of a different sort of group: how material is bought, how inputs are bought, how those inputs are processed, how these are sold, and how these are designed. So all these are subsystems of a bigger system, which is your organization. And your organisation has a goal. The goal would be to satisfy your customers, produce something, or whatever your goal might be. So that's how we understand a system is.And coming to the next definition, which is a business system So we know that a system has subsystems; these have overlaps; these have interdependencies. Just like system, a business system is also a system. In this business system, we have processes and procedures to provide a specific good or service to the customer. The goal here is to provide some goods or some services to the customer. So that's the goal, and then as a subsystem we were talking Here in the business system, we have a procedure or process coming to the next thing, which is a process. Systems help you run the business, but the processes help you run the system. So on the top you would think that youhave a systems help you to run the business. But how these systems are run is through processes. So processes are basically what you can consider a subsystem coming to the next thing, which is stakeholders. Here, a stakeholder is any individual, group, or institution that is affected by or interested in the organisation or the project. So, those are stakeholders. So if you have an organization, there will be a number of stakeholders. Stakeholders could be the management, shareholders, employees, their families, people living around, or the general public media. There could be a number of stakeholders with an interest in the business or in the organization. These stakeholders need to be properly managed. Whether you are doing a big project, like setting up a big company or something, or you are doing a Six Sigma project, you need to manage your stakeholders. Because if these stakeholders are poorly managed, that will lead to an adverse effect on your project, the improvement project, or the Six Sigma project, which you are doing. So make sure you identify who the stakeholders are—those are the people who are interested in your Six Sigma projects—and how you can manage them. So we have a number of stakeholders. As we earlier said, stakeholders could be the owners, managers, people who invested money, investors, or suppliers. They have a different level of interest in the organization. If you look at the core of the organisation, the core of owners and managers, these people have a much deeper interest in the organization. Or similarly, if you are doing a Six Sigma project, these will be the people who will have more interest in your project. Then comes the next layer. The next layer consists of suppliers, customers, employees, and partners. Then the other layer could be local communities, associations, and media who are interested. But these people are for example, these people arenot as much interested as your manager or asthe owner of the organisation is interested in. And the outer layer, which you can probably refer to as the public, is also interested in your organization, albeit on a very low level. So, once you know who is interested in your project, who is the core, and who needs to be taken care of, you can better manage them. Now, coming to stakeholder analysis, we have a number of stakeholders. How do these stakeholders fit together? Let's try to classify them into four quadrants. So in four quadrants, we are having interest here on the horizontal axis, and on the vertical axis, power is going, with more power at the top and less power at the bottom of this matrix, and more interest on the right and less interest on the left. So if we look at this particularquadrant, which is key players, these keyplayers have high power and high interest. So it's a high power, high interest. These are the key players. How do you need to manage them? You need to manage them closely because they have a lot of power, they can influence your project, and they have a high interest in the success of your project. So these people—the people in this group—need to be managed. And who are the people in this group? probably be the manager. Okay, let's cross here, and let's say manager. And this is how you do stakeholder analysis. You make this matrix and, depending on what sort of interest and what sort of power they have, you put them in the proper quadrant. So let's say your manager comes here, and maybe power-wise, your shareholders might have less interest than your manager but more power. So they'll probably come here somewhere. So these will be, let's say, shareholders. So shareholders have more power, let's say, than managers to influence investment decisions, but they have a lesser interest because managers have to manage on a day-to-day basis. This situation might be different, but I'm just trying to give an example of that. And public, if you believe the public has less power to influence your company and has fewer interests, the public may fall somewhere in this quadrant. So let's put it here. The public is here. So coming back to quadrant one, people who have high power or high interest are key players. These need to be managed closely, and then you have latents, which have high power but have less interest. Those need to be kept satisfied. As a result, your CEO is likely to be less interested in or monitor your project. That person might not be monitoring your projectclosely, might not be that much interested inyour project, but has a high power, sothat person might come under latent. So you need to keep them satisfied because they have high power. Then there's the apathetics, which are similar to the general public in that they don't have much power and don't have much interest; all you have to do is monitor them. Why? You need to monitor them because sometimes they might change from one quadrant to another quadrant. So this public might become more interested because of some issues in the organization. So you just need to monitor them to ensure that everything is going fine. And coming to the fourth quadrant, which is the defenders, these people have low power, but they have high interest in your organisation or in your project. These could be the people, for example, who are environmentalists. They don't have much power, but they have a high interest in seeing that you are not putting the waste outside or that you are not violating the environmental requirements. So these are the people who need to be kept informed. You don't ignore them. So this is how you do stakeholder analysis. This could be for your entire company; the company could be doing this as part of strategic planning; or it could be at the project level, where you need to look at who is interested in your project, which quadrant they fall into, and how you need to manage them. So this matrix is going to help you with that.
7. Strategic planning and deployment for initiatives (BOK I.A.4)
Hey, welcome to this section on strategic planning and deployment. Strategic planning is high-level business planning that the top management of the organisation does. In this section, we will be talking about strategic planning. Learn something about that. Learn some tools that help in strategic planning. And also, we will learn here how a Six Sigma project fits into a strategic plan. What's the connection between a strategic plan and a Six Sigma project? So these are the aspects that we will be learning in this section. Let's start this section with an understanding of what a strategic plan is. So a strategic plan is an activity to set priorities. So, an organisation has a number of choices. They can go for a number of products; they can go to a number of markets; they can look for a number of customers. But then they need to prioritize. Prioritize what specific client, what specific market, what specific product, or what all they need to do. So that is to set priority for the organization. so that the organisation or the company can focus their energy and resources on specific things. Rather than looking for everything, focus on the critical few that can help an organisation succeed rather than looking for everything. And this also ensures that the strategic plan also helps to ensure that the employees and stakeholders are working towards a common goal. Because this will tell you what we are working towards. So everyone will have a common understanding and a common goal. And this establishes an agreement around the outcome, or the results. what results we are expecting from the organization. The business environment around the organisation changes. So what does that mean? Is that strategic plan, which we made today, not applicable tomorrow? As things change, organisations need to adjust their strategic planning. So, before we go further into tools, let's understand what the connection is between strategic planning and Six Sigma projects. Let's do that on the next slide. So, as we said in the earlier slide, the strategic plan sets the direction, the goals, the targets, and a common understanding for the organization. How does that fit together with Six Sigma? Since the strategic plan provides direction, SixSigma helps the organisation achieve that objective. So, if the organisation has set up a goal of doubling their market share, making their market share two times larger in, let's say, two or three years, then Six Sigma can help the organisation reduce defects. With the reduced defects, you would see that there are satisfied customers. With a satisfied customer, the company can increase its market share. On the other hand, by reducing defects, a company can lower the cost of production. With that, the profit margins can go up. So this is how Six Sigma and a strategic plan work together. So the strategic plan sets the direction, and Six Sigma helps the organisation achieve the objectives of that direction. When you look for improvement projects and you ask for ideas from employees, you will get hundreds of ideas for improvement, but an organisation cannot work on hundreds of those improvement ideas at a time. What the organisation must do is choose some of the suggestions, some of the improvement projects that will help it achieve its strategic goals. So this is how these two things—strategic planning and Six Sigma—are clubbed together and working together: one sets the direction, the other helps in achieving that direction. In this slide, let's quickly look at the process of strategic planning. How does the whole thing happen? The first thing for the organization, the top thingis to have a mission or the dream. So there is a dream for the company, for the organization—what this company wants to achieve is the vision statement of the organization. Once the organisation has a vision statement, the next level of planning would be to set up its mission, which is what is to be done and why that needs to be done. After establishing a mission, the next level of planning is to have objectives. As a result, objectives will reveal how much of what exists. So these are things that will set the targets; the objectives will be the targets that the company needs to achieve to get to the vision or the dream. And once you've established certain goals, the strategies that will help you achieve those goals will emerge. The strategies will help the organisation find how these objectives will be achieved. And that's where we talked about strategic planning—how that plan will achieve the objective, which in fact will achieve the mission, and which in fact will lead the organisation to the dream, which is the vision statement. Once you have strategies, then you will be looking for action plans—specific actions—to achieve that strategy. The whole process of that is summarised here, which is having a vision, then having a mission, then having objectives, then having a strategy to achieve those objectives, and then having action plans. So that is, in summary, the process of strategic planning. After understanding the strategic planning, what does that mean? Understanding how that relates to Six Sigma and looking at the overall process of strategic planning starting from the vision statement Now let's look at the tools that are generally used for strategic planning and its deployment in the organization. So here I've listed five commonly used tools. One is SWAT analysis, test analysis, contingency planning, business continuity, planning, and Hoshin. Canary. We will be looking at each of these in the next few slides. So let's start that with a SWOT analysis on the next slide. Alright, so coming to the first tool of strategic planning, which is SWOT analysis, And if you look at each slot here, S stands for strength, W stands for weaknesses, O stands for opportunities, and T stands for threat. So these together are Swap analysis. So what you do is to do strategicplanning you need to understand where your organizationis today what strength, what weaknesses, what opportunities,what threats this organisation has today. And based on that, you can plan for the future. Where you are today will help you plan where you want to go tomorrow. So that's where SWAT analysis comes into the picture. So before you do any planning, the first thing you need to do is understand what strengths you have as an organization. So in this matrix, you list down all four things in the four quadrants of the matrix. So you write down strengths here. You write down weaknesses here. Opportunities go in this quadrant andthreats go in this quadrant. That gives an overall picture of the organisation and where this organisation stands today. So when you say strength, you mean something that gives this company or organisation an advantage over its competitors. Example of strength could be this has a wellestablished product for last 2025 years, 100 years. That could be one of the strengths. One of the company's strengths could be that it has established technology that it has used over time, resulting in a consistent product. All those strengths go in this box, which is strength. Then all weaknesses you are putting hereand all weaknesses are something which givesthis organisation disadvantage over its competitors. So once you have listed down these strengths and weaknesses, the purpose of that is that you need to take maximum advantage of your strengths when you are planning for the future. You need to see how you can exploitthese strengths for your company's advantage and weaknesses. You need to see how you can avoid that weakness or how you can address that weakness. So that's how you do strengths and weaknesses. List these down. Opportunities and threats are similar to strengths and weaknesses. Opportunities are similar to strengths, threats are similar to weaknesses, and these two are similar. But the difference here is in the opportunities and threats. These are external to the organization, and strengths or weaknesses are internal to the organization. So looking at opportunities, when we say "opportunities," they could be what this business can exploit or what external things this business can exploit. For example, there could have been a change in legislation or a change in some rules that is helping this organization. For example, if this company is a company that is producing green energy and government rules have changed in favour of green companies, that could be an opportunity because now this company can take maximum advantage of that opportunity, expand, have more windmills established, and set up. Similarly, when you look at threats, they are again external to the business and can cause trouble for the business. For example, if you are in the oil and gas sector and the government has put a strict rule on pollution and other legislation that does not help your company, those could be threatened because they will be hindrances to achieving your company's objective, mission, and vision statement. So you list down all your strengths, weaknesses, opportunities, and threats. And based on that, you can do some planning for your future. Let's move on to the nextanalysis, which is pest analysis. So let's look at that on the next slide. Just like what we did in SWAT analysis—assets, weaknesses, opportunities, and threats Here we are looking at different aspects of the business. We are looking at the political, economic, social, and technological aspects of the company. And based on that, you can plan for your future. So you look at P, which is for political, and you look at the political environment around the organization to see whether there is a risk of war, whether there is a risk of government being stuck on a particular industry, and whether the taxation rules are being changed. So something depending on government, whether thegovernment is helping the organisation or nothelping the organisation to achieve its objective,mission and vision statement. So that comes under the political part of that "P" part of pest. So you list down all the things that are helping or hindering the progress of the organisation because of political or government interventions, which is economic. You look at the economic environment. What economic conditions are helping or hindering the progress of the organization? The interest rate, the market, the stock exchange, and the recession could change things for the organization. So those aspects are written in the economics part of the pest analysis. And then you look at the social or cultural aspect: what are the current trends people are going for with iPhones or those sorts of things that are cultural and on which people are dependent? Those things are listed in the social aspects. Then you look at the technical, or where you look at automation, new technology, whether the new technology is helping the organisation or if the new technology needs to be developed; all of these aspects are covered in the key part of the pest analysis, which is technological. So that was another strategic planning tool. Let's move on to the next tool. So here we have one more tool that will help in strategic planning, which is contingency planning. So in the contingency planning, something is related to risk management. Here you plan for contingencies. What will happen if something unfavourable happens? Did you plan for that? Did your organisation plan for those things? Those aspects are covered in the contingency planning because if there's an earthquake, did we have insurance for the organization? If there is a sudden market crash, do we have some backup cash? All these aspects are covered in the contingency planning. This is another tool for strategic planning. Let's go for one more tool on the next slide, which is business continuity planning, similar to the one about which we talked earlier, which was contingency planning. Contingency planning was used to prepare for the worst-case scenario, something going wrong. Here in business continuity planning, we are planning for things to go wrong and then also planning for what to do. In that case, if you look at the business continuity plan of an organization, you'll see a number of risks listed there: what happens if there's a flood? what happens if there's a fire? what happens if there's an earthquake? what happens if there is a terrorist attack? All these aspects are listed in the company's business continuity plan, and how to deal with that is also listed. Who is the person responsible, whom to call, and what steps are to be followed in each case that together form the business continuity plan for the organization? This is another tool which will help inpreparing your strategic plan for the organization. So here we have another important tool for strategic planning and its deployment, which is the Hoshin Canary or X Matrix. On the next slide, we will show an example of a X matrix and how that matrix is made. This matrix has a planning fromlong term to shortterm perspective. So it looks at what goals and objectives this organisation wants to achieve in, let's say, three years from now. Then those objectives, how those are converted toone year objective, from there these are convertedto actionable items and people are or thepersons are assigned to those. So the whole system of planning, from the long term to the short term to the specific actions that are hosting Canary X Matrix, is explained in the details on the next slide with a simple example. So this helps in creating goals, assigning them to the milestones, and assigning them to specific people. This, just like any other plan, is an ongoing process. So it's not that you create an X matrix now and that's done. So as things change and the environment changes, you need to refine that. This tool helps in creating a shared vision within the organisation, so all the people involved have a common vision or a common actionable list of items. Let's understand this in a little bit more detail on the next slide, where we have a sample example of the hosting canary planning. So let's move on.
8. Strategic planning and deployment for initiatives (BOK I.A.4 Part 2)
So we talked about the Shein Canary Strategy Deployment Matrix, which is also known as the X Matrix. Let's take a quick look at that. Let's look at this X matrix. So it's something along the lines of X. So you have an X here, and this makes the matrix into four quadrants. So we have these four quadrants here. This is your number-one quadrant. No one will have the results or thiswill have some say that three years objectives. So you have three year's objectives here. So here, in this document, you put your three-year objectives. So for your three-year objective, you put five or six key objectives here. Let's say one of your objectives is to reduce the defect level by 25%. So you put it here: 25% reduction in defect level. And then you have a few others. These are your three years' objectives. And then from these three years' objectives, you draw your one-year objective. So let's make it vertical here. So if you plan to do a 25% reduction in the de facto level in three years, probably what you would want to do is a 10% reduction in the de facto level for one year of planning. So this is your starting point. So this is your number two. And then in number three, you talked about strategies—how you're going to achieve that. So this is how you're going to achieve that. How you're going to achieve that would probably be—let's say you'll be doing a Six Sigma project—or you will assign a team for that. So let's say you have a Six Sigma project for how you will be doing that. Okay, so this is your how part. So we started from number one, and then from there we went to number two, which was a 10% reduction. And from the 10% deduction, we went to the third box, which explains how we will be doing that. We'll be doing a Six Sigma project for this. And then here we will be putting the number four on the goals. And the goal here would probably again be something like a 10% reduction in the defect level. So that's your goal. So this is how you create a hosting account. canary matrix. But in this case, you have a correlation between these as well. So the correlation would be a solid dot here. Solid dot is the primary responsibility. So this will be primary, and this shows secondary responsibility. So you make a matrix here so that you can connect these things together. For example, for this particular three-year objective, this is the one-year objective. And maybe for this three-year objective, you might have two separate one-year objectives. So you might have a 10% deduction in de facto. And then you might want to have some, let's say, customer satisfaction or something else as another one-year objective that could be, let's say, the secondary objective here. So the primary goal of a 25% reduction is a 10% reduction in defect level. But then the secondary objective is having a higher customer satisfaction rating. So you treat that as a secondary one. And then, from this, you come to the goal, and your goal is a 10% reduction. And then you assign people to these positions. So you give the name of the person. So a person's name is, let's say, Robert. So Robert is supposed to be primarily responsible for this. How? So this Six Sigma project, Robert is theprimary and then maybe there could be Roncould be secondary person assigned to that. So you assign people as well. So this is how, on a high level, Iwould say a hosting Canary X Matrix is created. So earlier we talked about strategic planning. We talked about how Six Sigma helps in achieving a strategic plan. And then we talked about various tools to do strategic planning. We talked about the Canary X matrix here. What we have in portfolio analysis is that when you want to do an improvement project or a Six Sigma project in the organization, there will be a number of ideas and projects that will come. You need to select the project which you want topursue or which you want to go forward with. How do you decide that is doneby a portfolio analysis or portfolio analysisor analysing the improvement projects which willhelp the organisation in achieving strategic objectives. That is portfolio analysis in plain and simple language. What you do in portfolio analysis is, when you have a number of projects, you look at how much money you need to put into each project, how much time it's going to take, and how much engagement it's going to require. So that's something in which we need to invest, and what will be the return if that project is successful? And when I say if that project is successful, then we need to look at the chance of success. You look at these three things and see whether the project is aligned with the strategic objective. And based on that, you select a number of projects that you want to go ahead with. So this is a portfolio of the projects. Just like you have a stock portfolio in your portfolio, you might want to have some stocks or some shares that are risky, and you want to keep some of your portfolio or your money where there is less risk. So you manage your portfolio. Similar to that, you manage your Six Sigma project portfolio as well. You want to keep some projects that might give you an assured return. Then you might want to keep some projects on which you might want to bet that if this project is successful, the gains will be huge. But yes, there is a lesser possibility of this project being successful, but you still want to take a chance. So this is how you manage your whole set of projects, or your portfolio of six sigma projects. So that's portfolio analysis, which you do as part of groups of Six Sigma projects.
9. Leadership - Roles and Responsibilities (BOK I.B.1)
Hey. Welcome to this section on Six Sigma Leadership, Rules, and Responsibilities. In this section, we will try to understand what sort of belts we have. Since you are doing this Six Sigma black belt course, explain what a black belt is, what a green belt is, and what a yellow belt is. Let's understand that. So, just like any hierarchy, SixSigma also has a hierarchy. At the top of the hierarchy is a master black belt. A Master Black Belt is a person who is a champion in the organisation leading the Six Sigma effort. He is the in-house coach, or he is sort of an in-house Six Sigma expert. Below the master black belt, you have black belts. So depending on the size of the organization, you might have one or more black belts. What are the rules for that? We will go through that slide by slide. And then below black belts, you have Six Sigma green belts who work under the guidance of the black belt or who do some sort of smaller project of small complexity. Then there's Six Sigma yellow belt at the bottom of the hierarchy. Yellow belts are people who support Six Sigma green belts or black belts, depending on the need. There is also a Six Sigma White Belt also.That's not widely used, but many organisations have a Six Sigma white belt as well. So let's put a white belt here as well. So people with the Six Sigma white belt have just the basic understanding of Six Sigma, what Six Sigma is, and how this works. They don't have much detail about that, but they just have a basic understanding of the Six Sigma concept. So those are white belts along with the belt. Then you have people like a "champions management representative." Then you have a financial controller and many other people who support Six Sigma projects. We will go through that in our next few slides. So let's start the next slide with the rules and responsibility of a master black belt. So here on this slide, we have the rules and responsibilities of a Six Sigma master black belt. We already discussed this in the previous slide. That master black belt is a Six Sigma expert in the company. So this is an enterprise Six Sigma expert. And this person is highly proficient in Six Sigma methodologies. not only six sigma methodologies. This fellow is an expert in project management, knows how to handle projects, and has a nice connection with the senior management. So that if anything needs to be addressed in terms of Six Sigma, this person can do so. Many times this person gets involved in high-value Six Sigma projects, which are complex in nature, but the gains are much greater in those sorts of projects. You can have a master SixSigma black belt leading the project. This person provides the Six Sigma training to other people in the organization, which covers the black belt, green belt, and yellow belt. And this person is also a mentor or coach to Six Sigma black belts. Before we go to black belt, on the nextslide, let's talk about Champion, what the Champion is. And once we have learned about Champion, then we will go back to black belt. So we discussed master black belt here. Now we'll be talking about Champion. And then once we have done that, we will come back to black belt. So a champion in the organisation either charters or champions the chartering process. So what is a charter? The charter is essentially the project's agenda—what the project will entail, what the resources will be, and who will be involved. That's the Six Sigma Charter. The chartering of Six Sigma is either done by the Champion, who is a management representative, or this person champions the chartering process. This person identifies sponsors and directs Six Sigma projects because this person is a management representative. So this person helps in identifying what sorts of projects we should be working on. sponsors that provide all the resources needed for the project and give direction to the Six Sigma projects. As a champion, this person holds regular review meetings for the project to see how it is progressing. And in addition, this person helps with Six Sigma project expenses and capital budgets. So that is the role of a champion. Let's see a few more examples of that on the next slide. So, being a management representative, thisperson helps in removing organisational barrier. So if you need to get the support of another discipline or another department, this fellow will help in that. And this person takes care of rewards and recognition. communicate the leadership vision to the Six Sigma teams, monitors the progress as we have already discussed, and validates Six Sigma project results. Six Sigma project results are calculated financially. How much money did you make? How much money did you lose? So this person's champion validates the Six Sigma results. And for that, this person might take help from a financial expert as well. Champion nominates a black belt candidate or a master black belt candidate for a specific project. So in general, in summary, this person is a management representative, making sure that the projects that help the organisation are done and that any support that is required for those projects is given by the management. So that's the role of the champion. Now after this, let's move on to the role of a Six Sigma black belt. I'm on my way to becoming a Six Sigma black belt. Since you are doing this course, which is Six Sigma Black Belt, that's important here. So this person is a Six Sigma technical expert. Six Sigma black belts are temporary, full-time change agents. So what does that mean? It means that these people work in different disciplines and different departments, so they are pulled out of those departments and assigned the role of Six Sigma experts. So this person, if he or she is working in maintenance, working on projects, or working in production, is pulled from that for two years. And these people work for two years as a full-time black belt, full-time improvement expert, or change expert. And once that is completed, after completing a few projects, they return to their normal department or work. Since Six Sigma black belts are technically experts in the Six Sigma improvement methodology, they lead the improvement projects using SixSigma, which results in tangible benefits. Tangible benefits mean something related to money savings. And they show mastery of the black belt body of knowledge. So there are certain sets of knowledge that are required for a black belt, which you are gaining in this course. They are expected to demonstrate mastery of that, not just the theoretical part of that, how to implement that, where to use what tool they should be experts in that being experts in Six Sigma methodology, they assist Six Sigma green belts. Green belts have a lesser understanding, or they have a lesser scope. Green belts work on smaller projects. As a result, black belts assist Six Sigma green belts. They coach them, they mentor them, they can coach them, they can mentor them, and then they can recommend them for Six Sigma Greenwald certification in house. So a company might have an in-house certification programme where a master black belt certifies a black belt, a green belt, and a yellow belt, or the master black belts give that authority to a black belt to train the green belt and yellow belt and certify them. So that is the role of a black belt here. Now, with this, let's move to one step below the hierarchy, which is the green belt. So, starting with black belt, let's progress to green belt on the next slide. So, as we said earlier, black belts work full-time on improvement projects. They are pulled out from the department, and they work as black belts for two to three years. where green belts continue to work in their own department. Six Sigma projects are not their full-time job. They have their own full-time job, and part of their time is spent doing Six Sigma green belt projects. Or they help. six-sigma black belt So these are part-time change agents. Unlike black belt, which was a full-time change agent, these fellows continue to do their own jobs in addition to the Six Sigma projects. And they perform Six Sigma in their own local areas. Because when things get complex and complicated, this involves multiple areas. And that is where you bring in six-sigma black belts. Because things are complex, there are multiple parties involved. You need to bring in black belts. But if the project is limited in scope, limited to the local area, then Six Sigma green belts in that area can do those improvement projects, and they participate in Six Sigma project teams. Green Belt participates in other projects as well. With that, let's move on to one step below, which is yellow belt. Yellow belts are sort of new people in the Six Sigma process. They are new to the process, they learn theprocess, and then they apply these simple basic tools. They actively participate in the team task. So if they are part of one team and a project involves multiple disciplines and multiple departments, then a Six Sigma black belt might be leading the project. But then under the black belt, this person might have one yellow belt from, let's say, the production department and one green belt, let's say, from the maintenance department. So all these green belt and yellow belt people support the black belt in performing that complex project. And these people have some basic understanding of the basic tools, so they don't have an understanding of the complex statistical processes. For example, their knowledge level is limited to basic quality improvement tools. The next role in Six Sigma projects is analysis. And this is financial analyst we earliertalked in The Role of Champion. That champion looks at the financial reporting—the financial gains of the project. This is where financial analysts help champion defining the gains from the Six Sigma project. So the first thing this person needs to do is to validate the baseline. And when I see the baseline, let's say this is the level of defects at the beginning, and then later on, by doing the Six Sigma projects, the number of defects goes down something like this, and these are the number of defects. So later on, when the project is completed and the team concludes that the defect rate has come from, say, 10% to 1%, how would you know that before the project was started, the actual defect rate was 10%? This is what the baseline is. Baseline is something that was the status at the time of the beginning and is validated by a financial analyst. So before you start the project, you look at the baseline, where the process is at that time. And then you do the project, you make improvements, you make changes, and then again you measure the status of the project. Financial analysts perform validation as a baseline and as a final step. And this person compiles the overall investment versus benefits of the Six Sigma project—how much investment was made and how much benefit was achieved from the project? And when you say investment, that investment could not only mean the machine or new thing that has been put into the project. This would also mean the time the team has spent on the training, which team has gone through it, the time spent on that, the amount spent on training, and all those expenses are compiled together. And it is the role of a financial analyst to tell how much money was invested in this project and how much profit was made. And this individual is a member of a senior leadership team that reports to senior management on the financial success of the Six Sigma project. So with that, we have broadly covered the roles and responsibilities of people involved in Six Sigma processes.
10. Organizational roadblocks and change management (BOK I.B.2 Part 1)
Hey, welcome to this section on organisational roadblocks and change management Whatever Six Sigma project you are doing, once you are done with the project, once you have defined the project, measured the current status, analysed the data, and made some improvements, you want to control that. So once you want to go through the DMAC process, at the end of the day, what you are doing is making some change, some change to the current process, some change to the current system—something you will be changing. Whether that change will be successful or not will depend on a number of things. So those are the things that we will be learning here in this section. What are the things that you need to know to make those changes? It's not going to be that easy to say something, and people will start doing something. You will say that instead of doing Process A, let's move on to Process B, and things will be good. It's not going to happen right away. There will be some resistance because people are used to a certain way of working. When you ask them to change, people are worried. They are anxious about how to deal with that. Let's understand those aspects here in this section. So what are the areas we are covering in this section? First, we will try to understand the types of structures, organisational structures, and what sort of structures organisations have. Understanding the structure will help you decide what sort of approach you should take and what the chances are that your project is going to be successful. That will depend on your organization's structure. So we will talk about that, and then we will be looking at the causes of Six Sigma failure, why Six Sigma projects fail, and then we will be talking about the change management process. In the change management process, we are talking about two models. One is Levin's model, which is much simpler, and then a little bit more complex is Carter's model. So we'll be looking at these two change management models, and then we will be looking at some change management tools that can help you successfully implement your Six Sigma project results. So with that, let's move on to the next slide to understand the types of organisational structures. So, why do we need organisational structure when things are simpler, when there are a limited number of people doing a job or people running a company, say, a two-person company? It's simple. This is the work that I will be doing, and this is the work that you will be doing. But when things get complicated, when the bigger products are being made, you have a company that has thousands of people working in it, and it becomes important to define what role each person is playing and how the reporting structure works. and that's why you need organisational structure. In defining organisational structures, there are three key components, and these are the complexity of the organization. An organisation could be a complex organization, or it could be a simple organization. The second component of the organisation structure is formalization, whether the organisation is formal or informal. And then the third component is centralization and decentralization. So let's look at these three aspects in a little bit more detail. starting with complexity. The organisation could be simple or it could be complex. So if it is a simple organisation and you're doing a Six Sigma project, in that case things might be easy because it's a simple organization, people know what you're doing, you can easily communicate with them, you can easily convince people, and your project recommendation could be much more easily implemented. But when it's a complex organization and there are a number of reporting structures, a number of silos, and a number of departments in those sorts of things, implementing your project results could be difficult. You could easily implement something in your department, but once it involves multiple departments, things will become difficult. So that's how complexity comes into the picture. When we talk of complexity, the complexity could be horizontal, vertical, or spatial. Horizontal complexity could come from a company that has multiple products or multiple ranges of products. Companies like General Electric, they manufacture water filters,to gas turbines and many other things. You can name that. And those are the sort of things these companies produce. As a result, there will be a horizontal complexity or horizontal differentiation that generates complexity. On the other hand, when you say vertical complexity or vertical differentiations, vertical differentiations come from the degree of reporting. So if you have a very tall structure and there are a number of reporting levels, then that organisation is complex because of vertical differentiation. So there are presidents, vice presidents, managers (general manager, senior manager, deputy manager), There are lots of layers in those sorts of companies, which create the complexity. And the third thing is spatial complexity, or the spatial differentiation that comes from companies located at different places. So you have multinational companies that operate in multiple countries. That creates complexity. Working in these complex multi-country organisations, it might not be easy to recommend something. And if you recommend something, that might work forone country, might not work for another country. So you need to take care of those aspects. when you do a Six Sigma project, when you report your recommendations, and when you implement those. So that's something to know about the complexity. Then comes the formalization. Some companies are very formal. They have very set rules and very set sorts of procedures, and everyone is expected to follow those procedures. That's a formalization. Everything is described step by step. On the other hand, some businesses are informal, and anyone can step in to fill any gaps. So if one person is missing, another person will jump in that person's place and do their job. That is informal company. But then again, it depends on complexity. Probably, if it is a complex organization, it will be more formal, whereas a less complex organisation can afford to be more informal or flexible. And the third key component here is centralization, how muchpower is centralized, whether all the decisions are taken atone particular place, key decision makers, all decisions are madeat every level that will decide how successful you couldbe in your Six Sigma project. Because in centralised company if you have aproblem, then problem needs to be get reportedto the management and management will tell yousomething and then you need to implement that. That's a centralised one there. It's not easy to do a Six Sigma project, but when the company is decentralized, where decision-making is at the working level, there's a good chance of your project being successfully implemented. So that's sort of a high-level overview of the types of organisational structures and how that could affect your Six Sigma project implementation. So on this slide, let's look at a few other aspects of organisational structure. Organization could be flat or vertical organization. We talked about that earlier when we talked about vertical complexity or vertical differentiation We said that a company could be flat, with fewer levels of reporting, or this could be a vertical organisation with multiple levels of reporting. and that's another way of classifying organisational structure. If you have studied PMP, which is project management professional examination, or if you are working in project management, you will see that there are three types of organizations: functional organization, project organization, and matrix organization. Functional organisations are where decisions are taken at the functional level. So there is a separation in function: there is a maintenance department, there is a design department, and there is a production department. So if differentiation is that, and the department manager has much of the power, then that organisation is a functional organization. But in project management, you might see a project organisation similar to a project organization. In some places, you could have a product organisation in some places.The project organisation or the product organisation is focused on a particular project or a particular product. So the project manager is responsible for the success of the project. This person pulls a number of people from functions, and all these people report to the project management team, and department management doesn't have much power on that. That is sort of an organisation for projects. And matrix organisation is a hybrid of functional and project management. So this is just to give you another view of how organisations are classified and how these organisations work.
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