Quality Progress - January 2016 - 31

BACK TO BASICS Best of DECEM B 2014 ER BY MOHIT SHARMA Know the Drill Rooting out critical-to-quality factors CRITICAL-TO-QUALITY (CTQ) trees, also webpage at www.qualityprogress.com. called drill-down trees, help quality profes- Step three. Then, the logistics head sionals translate broad customer needs into drilled down on seat cost, a measure of pro- specific, actionable and measurable project ductivity for seats in an organization (Online in the northeast region: wire transfer and metrics. They also help establish a relation- Figure 2). This measure, commonly used in check clearance (Online Figure 4). Wire ship between the customer priority and CTQ call centers, is reported as a percentage or a transfer, the low profitability process, is the project parameters. It helps Black Belts (BB) confirm that the problem they are trying to solve is aligned to customer and business priorities. The CTQ tree should be a routine tool used during the define phase of Six Sigma projects. The examples presented in The northeast region was the least profitable (Online Figure 3). Step two. There are two key processes The CTQ tree should be a routine tool used during the define phase of Six Sigma projects. this article help illustrate this concept. ratio to indicate the time the seat is in use or focus of the BB project. Reduce operating costs generating revenue. The metric for the BB's At a meeting, a CEO told his direct reports project could be improving seat use (SU = is divided into two subprocesses: interna- that his top goal for the year was cost reduc- headcount / (effective seats + blocked seats) tional and domestic wire transfers (Online tion. The head of the infrastructure and from X% to Y%. Figure 5). The team drills down to inter- The drill down can stop here because logistics department used the CTQ tree to reduce infrastructure and logistics costs. Step one. Total organizational costs could be affected by salaries and benefits of Step three. The wire transfer process national wire transfer as the problem. It the project metric has been identified. A launches a project and identifies the metric relationship has been established between in the next step. the project Y and business Y. Step four. The BB project metric is identified: Reduce the cycle time of employees, IT and telecommute expenses, infrastructure and logistics expenses, travel Improving wire transfers international wire transfer from X minutes and living expenses and depreciation (Fig- At a leading American bank, the CEO identi- to Y minutes by June 2013 (Online Figure ure 1). The infrastructure and logistics head fied profitability as the business priority. All 6). The drill-down tree can stop because a determined he should focus on reducing staff members know that the international project metric was identified and a relation- infrastructure and logistics costs. wire transfer process is a major concern for ship between the project Y and business Y the organization. The drill-down tree could was established. Step two. The next level of the drilldown for infrastructure and logistics was help relate the project Y with the business Y. rent and utility costs for the organization, Step one. The profitability of the north, shown in Online Figure 1 on this article's northeast and east regions was calculated. Takeaways BBs must remember that there is no set rule governing the level to which they Step 1: reduce operating costs IT and telecom Other employee costs Infrastructure and logistics line is to pursue a maximum of five levels of drill down from the business priority. QP Cost Business Y Salaries and benefits should drill down. However, a good guide- / FIGURE 1 T&L expense Depreciation Other costs MOHIT SHARMA is assistant vice president at Genpact in Gurgaon, India. Sharma holds a master's degree in marketing from Symbiosis International University in Pune, India, and is an ASQ-certified Six Sigma Black Belt. Rent and utility cost Seat cost Seat utilization Black Belt project January 2016 * QP 31 http://www.qualityprogress.com

Table of Contents for the Digital Edition of Quality Progress - January 2016

According to Plan
Solid Proof
Use Your Head
Stakeholder Management 101
Customer Delight
All About Data
Eight Simple Steps
Minimizing Chaos
Take Note
Pyramid Scheme
Assessing Failure
Which Six Sigma Metric Should I Use?
Turning ‘Who’ Into ‘How’
In the Beginning
Outputs and Outcomes
That’s So Random—Or Is It?
Understanding Variation
Improving a System
Putting It All on the Table
Know the Drill
It’s Fun To Work With an F-M-E-A
Solve Problems With Open Communication
Tell Me About It
Separate the Vital Few From the Trivial Many
To DMAIC or Not to DMAIC?
Breaking It Down
Smart Charting
1 + 1 = Zero Defects
QFD Explained
Curve Your Enthusiasm
Make a Choice
What Is a Fault Tree Analysis?
Successful Relationship Diagrams
The Benefits of PDCA
Creative Combination
Return on Investment
The Art of Root Cause Analysis
Why Ask Why?
Get to the Root of It
Checks and Balances
Calculated Risk
Sufficient Evidence
Sample Wise
Clearing SPC Hurdles
Supplier Selection and Maintenance
Team Advantage
Building a Quality Team
Plan Experiments to Prevent Problems
Substantiation Test
Training Day

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