CHAPTER – 7(vi)

Project Success

As a project manager, the main objective of the project manager is to deliver the project within the time stated and on budget defined. However, that’s not all when it comes to project success criteria.

There are many parameters in a project success criterion :

1. Key Performance Indicators (KPIs)

The first project success criterion is to deliver projects bearing in mind the business drivers. Key Performance Indicators (KPI’s) is a method used to measure the benefits gained from undertaking the project.

These provide an insight to the scope of the project. The performance indicators are:

(i) Established by the clients at the start of the project and are listed on a priority basis.

(ii) Aligned with the business objectives.
Able to make critical decisions based on KPI’s for the project.

(iii) Prove to be a stance for products to be accepted by the clients.
It’s a quantitative method and it’s measurable.

(iv) To create a project success, criteria based on KPI is not enough and targets need to be set. These set targets need to be realistic and achievable at the end.

2. The Project Manager’s Verdict for Project Success Criteria :

A project success criterion begins with the initiatives taken by the project manager to the project in question. This will increase the chances of the project becoming successful as well as meeting customer’s expectations.

The project manager, who wants his/her project successful will definitely ask the customers for feedback. This approach will prove to be successful and will be a learning curve if any mistakes had been done. KPI need to go hand in hand with the business objectives for a project to be considered successful.

3. Meeting the Customer’s Expectations :

Going the extra mile is not restricted to only customer services, it’s also a magic word for project management. A top most important factor for a project success criterion is to exceed customer’s expectations by completing the project within the stated deadline, budget and quality.

However, project manager needs to bear in mind that this could be misinterpreted and could lead to unnecessary cost. Ideas to make a better product than sticking to the original idea could be done with the approval of the customer. For this to be successful, proper implementation needs to be in place.

4. Success Factors :

Success factors are contributions made by the management towards a successful project. These can be classified broadly into five groups as follows:

(i) The project manager – The person needs to have an array of skills under his arm to use during the project.

(ii) Project team – The team needs to consist of variety of skills and experience. Collectively as a team, success is easy to achieve with proper guidance.

(iii) Project – The scope and timeline of the project is crucial.

(iv) Organization – The organization needs to provide support to both the project manager and the project team.

(v) External environment – External constraints should not affect the project. Back-up plans need to be in place in case daily tasks cannot be carried by the team.

The project’s quality should not be compromised under any circumstances as this will drive away potential customers.

Further Project Success Criteria

The criteria for a successful project are not restricted to only above. However, following are some of other supporting factors that need to be considered when it comes to a successful project management and execution:

(1) Negotiations
(2) Proper and conducive project plan
(3) Assigning tasks to the team members
(4) Developing a plan to achieve common tasks
(5) Reviewing and doing a rework when needed
(6) Managing project risks efficiently
(7) Allocating time for process improvement
(8) Learn from the learning curve
(9) Proper estimation of project in terms of not only quantitatively but also qualitatively.

Concluding, a project to be considered successful requires proper planning and the help from the management. Exceeding customer requirements will bring about success to the project.
Understanding the business drivers and ensuring that the project meets the objectives of the business will also contribute to success.

Aligning the key performance indicator to that of the business objective will not only help project managers to keep track but also measure and improve performance.

CHAPTER – 7(vii)

Project Records Management

Project management is an approach, which helps managers to manage the projects. Project management also means using controls in place to meet the deadlines and other requirements such as cost of the project.

These controls involve proper and effective recording of project management activities. Record management is a systematic approach for organizing, planning and tracking documents during the course of the project execution.

A-Z of Project Record Management

A record system is a systematic process in which an organization determines the following considerations, activities and characteristics:

1. The type of information that should be recorded.

2. A process for recording data.

3. Handling and collecting of records.

4. The time period for retention and storage.

5. Disposal or protecting records, which relate to external events.

6. Elements in a record management system.

7. Content analysis, which states or describes the record system.

8. A file plan, which indicates the kind of record that is required for each project.

9. A compliance requirement document, which will outline the IT procedures that everyone needs to follow. This will ensure that team members are fully compliant.

10. A method, which collects out dated documents. These should be done across all record sources such as e-mails, file servers, etc.11. A method for auditing records.

12. A system, which captures the record data.

13. A system, which ensures monitoring and reporting in the way which records are being held.

11. A method for auditing records.

12. A system, which captures the record data.

13. A system, which ensures monitoring and reporting in the way which records are being held.

Three stages of Record Management :

In the project record management process, there are three distinct stages. These stages have many other activities involved in order to complete and accomplish the objectives for each stage.

The stages are :

1. The creation of records

2. Maintenance of records

3. Storage and retrieval of records

Let’s have a look at each of the stage in detail :

1. Creating Records

This refers to the underlying reason as to why the record is being created. This could be for a receipt or for an inventory control report or some other reason.

The primary objective of project record management is to determine the flow of the record handling once the record is created.

When it comes to creating records, the following questions should be answered.

(i) Who will view the record?
(ii) Who will be the final owner of the record?
(iii) Who is responsible for storing the record?

2. Maintaining Records

Developing an operation to store the records refers to maintaining the records. The access levels to the records should be defined at this stage and should take all necessary steps in order to avoid the records getting into the wrong hands.

Proper compliance procedures and security measures need to be in place to avoid misusing of records.

3. Storing and Retrieval

Storing of records could refer to manual storage of documents as well as digital storage. Project managers need to ensure that the records are returned in the way it was borrowed. Maintaining records also refers to the amount of time that records can be maintained.

Some organizations may retain records up to ten years whilst others less amount of years. If records are saved digitally, proper folders need to be created. Once created, the older documents need to be archived so that hard drive space is retained.

An Insight to Record Management Planning

Records, which are collated needs to be planned. The following outlines the steps that management needs to take to ensure record planning process is successful.

* Identification of roles, which ensure that records are managed properly.

* Allocating dedicated roles or appointing dedicated people to categorize the records, which are available in an organization.

* Appointing IT professionals to implement systems, which maintain and support record management.

* Managers need to make sure that the team members are aware of the procedures in place for record management.

* The record management process needs to analyze the content of the documents, which are to be saved.

* Implement a file plan, which will store the different kinds of files in an organization.

* Develop retention schedules, which could vary from one organization to another depending on the activity taking place.

* Design effective record management solutions.

* Planning of how content can be moved to record methods.

* Develop a plan where e-mail integration could be made.

* Plan a compliance procedure for social content.

* Develop compliance procedures that align the objectives of project record system.

Concluding, A record is a document or an electronic storage of data in an organization which acts as evidence or a guideline. A project record management is a systematic process, which allows people to retain records for future use.

It outlines the details which are relevant to the project. Hence, project record management needs to be monitored and retained in a careful manner.

CHAPTER – 7(viii)

Project Meeting a Kick-off

A project meeting is the best opportunity for a project manager to energize his or her team. During this meeting, the project management can establish a sense of common goal and start understanding each individual.

Although a Project Kick-off meeting appears to be a simple meeting with all the stakeholders of the project, a successful project kick-off meeting requires proper planning.

The following steps are some of the important preparation points for a successful project kick-off meeting.

1. The Agenda

A strong and clear agenda is a must for a project kick-off meeting. If you have no clue of what the agenda should be, ask your experienced subordinates or get hold of some of the agendas used for earlier kick-off meetings by others. The agenda usually includes purpose of the project, deliverables and goals, key success factors of the project, communication plan, and the project plan.

In advance of the project kick-off meeting, make sure that you circulate the meeting agenda to all the participants. This way, all the participants are aware of the structure and what to achieve at the end of the meeting.

2. Getting Started

When the meeting starts, the project manager should take charge of the meeting. Next, all the participants should be welcomed and a round of self-introduction should take place.
Although you have already shared the meeting agenda with the participants, briefly take them through the agenda while giving a brief introduction to each item in the agenda.

Pay more attention towards introducing the project roles and emphasize the reasons why the term members were assigned to respective roles.

If there are people playing stretched roles, acknowledge about it. When you do all these things, do not go into detail. The purpose of this meeting is to take everyone on to the same platform.

3. Project Presentation

Once the tone is set, present the agenda in a structured manner. First of all, talk about the project assumptions and how you developed the project plan.

Present your reasoning behind the plan and convey the message that you are open to suggestions when the project progresses. Go through each task in the project plan and elaborate sufficiently.
Emphasize the fact that the project plan and the schedule are still at the initial stage and that you are expecting everyone’s assistance for making it complete. Identify and acknowledge the potential bottlenecks or challenging tasks in the project schedule.

4. Setting the Expectations

Decide on a convenient time to hold regular meetings to talk about project progress. Emphasize the need of everyone’s participation for the regular meetings.

Teamwork is one of the most important expectations to be set. You need to elaborate more on teamwork and plan some teamwork activities just after the project kick-off.

Talk about the time sensitive nature of the project and how the leaves are granted during the project period.
If the project requires working long hours, letting them know in advance and showing them how you can help them to maintain the work-life balance is a good strategy. During the meeting, empower the team members to carry out certain tasks and make them responsible.

5. Communication Plan

Communication is one of the main aspects of a project. Therefore, the project kick-off meeting should emphasize more on the communication plan for the project.

This usually includes the meetings and escalation paths. Following are some of the meetings that take place during the project life cycle:

(i)   Weekly status meeting
(ii)  Project plan updates
(iii) Task and activity planning sessions
(iv) Management updates
(v). In addition, you can emphasize on the other communications channels such as e-mail communications, forums, etc.

6. Feedback and Closure

At the end of the kick-off meeting, open up a Q&A session that allows the team members to freely express themselves.
If the time is not enough to facilitate all the team members, ask them to send their queries and feedback via e-mail. Once you have a look at those e-mails, you can set up another discussion to address those.

Never drag a planned meeting too much, since it could be a bad example. Before everyone leaves, summarize the meeting and call out the action items and next steps.

To conclude, there are four main areas that should be emphasized about holding project kick-off meetings. Be prepared for the kick-off meeting.

* Demonstrate your ability to organize and lead.

* Empower your team members. Assign them responsibilities.

* Develop and nurture teamwork.

* Demonstrate your leadership qualities.

CHAPTER – 7(ix)

Key to Project Success

Having worked as Project Officer for 14 years, I found the main objective of the Project Officer is to deliver the project within the time stated and on defined budget. However, that’s not all when it comes to project success criteria.

In addition to above conditions, the project manager/officer needs to work closely with the user and should ensure the project deliverables have met the user expectations.

There are many parameters in a project success criterion :

Key Performance Indicators
The first project success criterion is to deliver projects bearing in mind the business drivers. Key Performance Indicators (KPI’s) is a method used to measure the benefits gained from undertaking the project.

These provide an insight to the scope of the project. The performance indicators are:

(i) Established by the clients at the start of the project and are listed on a priority basis.
(ii) Aligned with the business objectives.
(iii) Able to make critical decisions based on KPI’s for the project.
(iv) Prove to be a stance for products to be accepted by the clients.
(v) It’s a quantitative method and it’s measurable.

To create a project success, criteria based on KPI is not enough and targets need to be set. These set targets need to be realistic and achievable at the end.

The Project Manager’s Verdict for Project Success Criteria :

A project success criterion begins with the initiatives taken by the project manager to the project in question. This will increase the chances of the project becoming successful as well as meeting customer’s expectations.

The project manager, who wants his/her project successful will definitely ask the users (customers) for feedback.
This approach will prove to be successful and will be a learning curve if any mistakes had been done. KPI need to go hand in hand with the business objectives for a project to be considered successful.

Meeting the User’s Expectations

Going the extra mile is not restricted to only customer services, it’s also a magic word for project management. A top most important factor for a project success criterion is to exceed customer’s expectations by completing the project within the stated deadline, budget and quality.

However, project manager needs to bear in mind that this could be misinterpreted and could lead to unnecessary cost. Ideas to make a better product than sticking to the original idea could be done with the approval of the customer. For this to be successful, proper implementation needs to be in place.

Success Factors

Success factors are contributions made by the management towards a successful project. These can be classified broadly into five groups as follows:

(1) The project manager – The person needs to have an array of skills under his arm to use during the project.

(2) Project team – The team needs to consist of variety of skills and experience. Collectively as a team, success is easy to achieve with proper guidance.

(3) Project – The scope and timeline of the project is crucial.

(4) Organization – The organization needs to provide support to both the project manager and the project team.

(5) External environment – External constraints should not affect the project. Back-up plans need to be in place in case daily tasks cannot be carried by the team.

The project’s quality should not be compromised under any circumstances as this will drive away potential customers.

Further Project Success Criteria

The criteria for a successful project are not restricted to only above. However, following are some of other supporting factors that need to be considered when it comes to a successful project management and execution:

(i) Negotiations
(ii) Proper and conducive project plan
(iii) Assigning tasks to the team members
(iv) Developing a plan to achieve common tasks
(v) Reviewing and doing a rework when needed
(vi) Managing project risks efficiently
(vii) Allocating time for process improvement
(viii) Learn from the learning curve
(ix) Proper estimation of project in terms of not only quantitatively but also qualitatively

Concluding, a project to be considered successful requires proper planning and the help from the management. Exceeding customer requirements will bring about success to the project.
Understanding the business drivers and ensuring that the project meets the objectives of the business will also contribute to success.

Aligning the key performance indicator to that of the business objective will not only help project managers to keep track but also measure and improve performance.

CHAPTER – 7(x)

Project Lessons Learned

Projects vary in terms of purpose, cost, magnitude and the timelines involved.
Yet, they all have common features and the lessons learned from one project can easily be incorporated in another, circumstances permitting.

Some of Useful Lessons Learned for Project:

1. The success of a project is largely dependent on the skills and strengths of the people involved. Therefore, a project needs to have a dedicated, talented set of individuals working towards a common goal.

2. Together with leadership skills, the project manager needs to be aware of the strengths and weaknesses of his/her staff, so that the talents are harnessed and the shortfalls downplayed for the benefit of the project.

3. A champion team and a team of champions are indeed different. The former would lead to a successful project whilst the latter would yield to a conflict of egos, each chasing an individual goal.

4. It pays to know who the decision makers are. Such individuals may not always be readily visible, but they will be calling the shots, so developing a strong line of communication with such individuals will reap benefits in the long run.

5. If you have the knowledge and experience to make a decision, then you should go ahead and so, without expecting top managers to spoon feed you at every turn.

6. Procrastination does not work. After assimilating the relevant information, decisions need to be made. Wrong decisions can be salvaged, if discovered early; but right decisions cannot be postponed.

7. When things go wrong, as they invariably will; excuses will not work. Find an alternative course of action or remedial propositions instead.

8. Allocating blame only causes dissention and hostility, searching for solutions will bring the team together.

9. Be pro-active in your approach. Reactivity is just not good enough.
Be open to change. Sometimes, you may find that the things you knew along may not be correct at this given time, under these specific conditions.

10. Know what resources are available. Not just those under your purview but those which are at the discretion of other teams. Sometimes, others may be happy to help.

11. Paperwork and documentation are necessary for reporting purposes. But when making decisions, placing too much reliance on data which may have changed within a surprisingly short timeframe pays few dividends, especially in an unpredictable environment.

12. Know your user (customer) and know the objectives of the project at hand. If any significant changes need to be made, do so, but remember you need to consult the user first.

13. Respect your leader and his/her decisions. Sometimes, you may not agree with these. That is fine. Voice your objections, especially if they are reasonable. But once an action has been decided upon, even if it is contrary to your idea of what should have been done, support it, and try to make it a success.

14. Take account of all the known facts. Try to make sense of it, but don’t blindly force-fit scenarios into a pre-established mould. Such scenarios may have been right before, and will, in all likelihood, be right once again, but maybe just not in this case.

15. Do not be afraid of taking calculated risks.

16. When things go wrong, know who you can turn to for help.

17. Always disclose information to those, who will need it. This is not the time or place for obtaining an edge over another by keeping crucial data close to your chest. People, who know what is expected of them and have the means of doing so, will play a pivotal role in making the project a success.

18. Use modern technology and time tested management skills to your advantage.

19. Good communication is that which will stop mistakes from becoming failures. Mistakes happen and recovery is always possible. But failure is a dead-end street.

20. Do not blindly rush into decisions.

21. Careful thought needs to be given to the circumstances at hand prior to engaging in decision making. This will save time in the long run by minimizing the need to redo work.

Concluding, repetitive mistakes are the best avoided. Project lessons learned should be documented so that future team leaders can make use of the learning experience of others in order to avoid the same pitfalls themselves.

CHAPTER – 7(xi)

Total Rewards Management

Reward management is a strategic approach to incentivising your workforce to improve performance, engagement and morale:

* Reward employees according to a business’s values and that they are prepared, or are able, to fund
It rewards employees for the value they create and contributes to employee wellbeing.

* Reward the things that convey the right message about what is important in terms of behaviours and outcomes within a business.

* It helps to contribute to a strong, positive company culture
It strengthens your EVP (employee value proposition) – your EVP is what sets you apart from other employers (your competitors) and helps you attract top talent to your organisation

* It can help motivate employees and confirm their commitment to the business and engagement within it
Help to retain top talented individuals to your business.

* It increases productivity

* It helps you to build a strong reputation – this can be a key way to engage employees, contribute to a positive reputation and have a significant influence on your clients.

Importance of reward management
Typically, businesses are always switched on when it comes to policies surrounding employees’ lack of performance or failure to hit targets. Having a reward management programme in place helps to balance that and prevent a negative atmosphere resulting in a downturn in productivity and an uptick in employee turnover.

Principles of Reward
Development of reward principles based on values and culture. The project team developed a set of Total Reward principles based on four strands:

1. Pay,

2. Benefits,

3. Values, and

4. Career progression.

Recognition and Rewards: Rewards and recognition are considered powerful tools, which are used by an organization to motivate its employees.
Rewards and recognition are remuneration based systems, which include bonus, perks, allowances and certificates.

Remuneration methods :
Often people are under the impression that companies only offer remuneration based systems and not recognize the employees’ performance.

In an organization, you will find following systems in place to boost motivation in addition to the regular compensation.

1. Remuneration pay
2. Non-financial benefits
3. Share options

1. Remuneration Pay
Pay is an essential factor, which is closely related to job satisfaction and motivation. Although pay may not be a reward as this is a static amount, which an employee will be paid every month, it will be considered as a reward if similar work is paid less.

Additional Hour’s Rewards
This is similar to that of overtime. However, it is paid to employees if they put in an extra hour of work for working at unsocial hours or for working long hours on top of overtime hours.

Commission
Many organizations pay commission to sales staff based on the sales that they have generated. The commission is based on the number of successful sales and the total business revenue that they have made. This is a popular method of incentive.

Bonus
Bonuses will be paid to employees, who meet their targets and objectives. This is aimed at employees to improve their performance and to work harder.
Performance Related Pay
This is typically paid to employees, who have met or exceeded their targets and objectives. This method of reward can be measured at either team or department level.

Profits Related Pay
Profits related pay is associated with if an organization is incurring a profit situation. If the organization is getting more than the expected profits, then employees receive an additional amount of money that has been defined as a variable component of the salary.

Paid leave

A highly sought-after process, it offers additional vacation days, sick leave, or personal leave.

Fringe benefits

As an employee, you can receive supplemental benefits like health insurance, paid time off, and retirement plans.

Payment by Results
This is very similar to that of profit related pay. This reward is based on the number of sales and total revenue generated by the organization.

Piece Rate Reward
Piece rate reward is directly related to output. The employees get paid on the number of ‘pieces’ that they have produced. These pieces will be closely inspected to make sure that quality standards are being met.

2. Non Financial Benefits

Employees will not always be motivated by monetary value alone. They do require recognition to be motivated and to perform well in their work.

Professional development training This lets a company invest in employees’ skills and knowledge.

Job Enrichment
This is a common type of recognition that is aimed at employees to get motivated. Job enrichment allows more challenging tasks to be included in the day-to-day tasks performed by the employee.

Working the same way everyday may prove to be monotonous to the employees. Therefore, there will be a lack of interest and the performance drops.

Job Rotation
Unlike job enrichment, job rotation refers to shifting employees between different functions. This will give them more experience and a sense of achievement.

Teamwork
Teamwork is also considered as recognition. Creating teamwork between team members will improve performance at work. Social relationships at work are essential for any organization.

Healthy social relationships are considered as recognition to the employees. This improves their morale and performance.

Empowerment
Empowerment refers to when employees are given authority to make certain decisions. This decision making authority is restricted only to the day-to-day tasks.

By giving employees authority and power can lead to wrong decisions to be made which will cost the company. Empowerment will not relate to day-to-day functioning authority. This will make employees more responsible, vigilant and increase their performance.

Training
Many organizations place a greater emphasis on training. This is considered as recognition for employees. Training could vary from on the job training to personal development training.
Training workshops such as train the trainer or how to become a manager will give employees a chance to switch job roles and this will increase their motivation levels.

Awards
This again is an important type of recognition that is given to employees, who perform better. Organizations have introduced award systems such as best performer of the month, etc., and all these will lead employees to perform better.

Below are the main objectives of implementing a reward system :

1. Motivation
Reward systems act as a catalyst for motivation by directly linking desired behaviours and performance with positive reinforcement. This can take various forms, from bonuses for exceeding sales targets to public recognition for exceptional customer service.

2. Engagement
Beyond sheer motivation, reward systems contribute significantly to employee engagement. When employees feel valued and appreciated for their contributions through well-designed rewards, they become more invested in their work and dedicated to the organisation’s success.

3. Accountability
Effective reward systems go beyond simply recognising achievements by promoting accountability among teams. This instils a sense of ownership and responsibility within individuals and teams, encouraging them to take initiative, strive for excellence, and hold themselves accountable for results.

4. Talent management
Competitive and attractive reward systems play a crucial role in talent management. They serve as a magnet, attracting top talent seeking opportunities for recognition, growth, and financial well-being.

Additionally, well-designed rewards contribute to employee retention by creating a sense of value and appreciation, discouraging them from seeking opportunities elsewhere.

5. Strategic alignment
Finally, reward systems play a vital role in ensuring alignment between individual goals and organisational objectives. By linking rewards to behaviours and outcomes that contribute to achieving the organisation’s strategic goals, you will find that you’ve created a unified force, much like what is taught in HR analytic courses.

Advantages of Introducing Rewards and Incentives
While we’ve outlined the broader benefits of reward systems for individuals and organisations, let’s see why they’re useful for both forces: employees and organisations.

For Employees
1. Greater motivation, job satisfaction, and sense of accomplishment
Well-designed reward systems directly link positive outcomes with desired behaviours, acting as a powerful motivator. This can be financial rewards for exceeding sales targets, public recognition for exceptional customer service, or offering additional paid time off for exceeding work hours.
2. Increased learning and development opportunities
Reward systems can be designed to incentivise continuous learning and development. This could involve offering additional training opportunities for exceeding performance goals or providing tuition reimbursement for completing relevant certifications. An HR analytics course equips you to analyse data on employee skills gaps and training effectiveness.
3. Improved well-being and sense of belonging
Effective reward systems go beyond financial incentives and recognise various contributions to the organisation. These could include acknowledging teamwork, celebrating individual milestones, or offering flexible work arrangements that promote work-life balance.

For Organisations
1. Improved employee performance and productivity
When employees feel valued and motivated by well-designed reward systems, they are more likely to put in their best effort. This can directly translate to improved performance, higher quality work, and increased efficiency.
2. Reduced turnover and absenteeism
Offering competitive rewards can be a powerful tool for attracting and retaining top talent. Additionally, a well-designed system that recognises and values employee contributions can foster a sense of loyalty and reduce the desire to seek opportunities elsewhere.
3. Enhanced employer brand and reputation
A well-designed reward system prioritising employee well-being, growth, and recognition contributes positively to an organisation’s employer brand. This can attract top talent seeking not just competitive salaries but also a company culture that values its employees and invests in their development.

Factors Behind Designing a Reward System
Designing an effective reward system requires careful consideration of various factors to ensure it truly motivates employees and delivers desired results.

Here are some key factors to consider.

1. Organisational goals and values
The primary purpose of the reward system should be to support and incentivise behaviours that contribute to achieving the organisation’s strategic goals. Analysing these goals and values helps determine which behaviours and outcomes should be rewarded. Consider opting for an HR analytics course to learn what factors you need to look out for.

2. Employee needs and preferences
Understanding your workforce’s needs and preferences is crucial if you’re planning to design a system that resonates with them. This includes factors like demographics, job roles, career aspirations, and preferred motivational styles. Conduct surveys and focus groups and analyse data on past responses to rewards for obtaining better insights.

3. Market competitiveness and industry standards
Staying competitive in the job market is essential. Researching industry benchmarks and analysing compensation and benefits offered by competitors helps ensure your reward system is attractive and retains top talent.

4. Budgetary constraints
Financial resources available for the reward system need to be considered realistically. Striking a balance between offering competitive rewards and maintaining financial sustainability is crucial.

5. Type of work and performance measurement
For creative or knowledge-based work, intrinsic rewards and recognition might be more effective than solely focusing on financial incentives. On the other hand, performance-based rewards like bonuses might be more suitable for jobs with clearly defined metrics and goals.

Conclusion

You can adopt the specific reward type based on your organisational goals and influence organisational outcomes.
Rewards and recognitions are equally important when trying to promote performance and morale amongst employees. The above methods can be used to motivate employees.

Since all the methods may not be applicable to the same organization, the organizations should make sure that they choose the best rewards that suit the organization.

Total reward is a reward strategy bringing together all the investments an organisation makes in its workforce (e.g. pay, pensions and learning and development), with everything employees value in working for an organisation, such as flexible working and career opportunities.

Overall, the outcomes of a reward system can include improved motivation, increased performance, higher employee retention, and incentivized consumer behavior.

By rewarding and recognising on a frequent basis, you can build a culture of appreciation that spreads throughout the company. This then motivates people to do more, and to perform better. It’s not just about completing projects or hitting sales targets either.

Advantages
1. Greater motivation, job satisfaction, and sense of accomplishment.
2. Increased learning and development opportunities.
3. Improved well-being and sense of belonging.
4. Improved employee performance and productivity.
5. Reduced turnover and absenteeism

CHAPTER – 7(xii)

High-Potential Employee

In every workplace, certain employees stand out—not just for their skills but for their mindset, work ethic, and ability to drive results. These high-potential employees demonstrate behaviors that set them apart and position them for growth and leadership opportunities. If you’re looking to identify or become a high-potential employee, here are some key signs to look for:

1. They Are Humble

High-potential employees don’t let success get to their heads. They acknowledge their strengths without arrogance and are open to learning from others.

2. They Calmly Confront Toxic Behaviors

Rather than avoiding conflict, they address issues directly but in a composed and professional manner. This helps maintain a positive and productive work environment.

3. They Take Ownership Without Being Asked

Responsibility is their second nature. They don’t wait for instructions or supervision—they see what needs to be done and take action.

4. They Prioritize Cooperation Over Competition

They understand that teamwork leads to greater success than individual achievements. They focus on collaboration, not just personal gains.

5. They Over-Communicate Progress to Leadership

Keeping leadership informed is crucial. These employees proactively share updates, ensuring transparency and alignment with company goals.

6. They Say No to Meetings to Get Real Work Done

Not all meetings are necessary. High-potential employees protect their time and prioritize productive tasks over unnecessary discussions.

7. They Address Micromanaging Politely but Head-On

Rather than complaining about micromanagement, they address it professionally, setting boundaries while maintaining respect.

8. They Stay Away From Gossip and Corporate Politics

They focus on work and personal growth rather than engaging in office drama, keeping their energy directed toward meaningful contributions.

9. They Treat Everybody Equally, Not Based on Title

Respect is a core value. They engage with everyone fairly, regardless of hierarchy, making them well-liked and trusted by their peers.

10. They Create Win-Wins With Colleagues

Collaboration isn’t just about personal success—it’s about ensuring mutual benefits. They strive for outcomes where everyone gains.

11. They Shadow High-Performing Team Members

Learning from the best is a habit. They observe and adopt the strategies of top performers, constantly improving themselves.

12. They Start All Work With an Objective and KPI

They don’t just work for the sake of working. Every task is aligned with clear objectives and measurable key performance indicators (KPIs).

13. They Are Wildly Open to New Ideas

They embrace innovation and change, always looking for better ways to improve processes, solve problems, and contribute creatively.

14. They Focus on Work That Moves the Needle

Prioritization is key. They identify the most impactful tasks and dedicate their time to activities that drive real results.

15. They Unapologetically Protect Personal Time

Work-life balance matters. They set boundaries and ensure their personal time is respected, preventing burnout and maintaining long-term productivity.

16. They Drive Their Own Learning

Learning is continuous. They take initiative to upskill, seek knowledge, and grow professionally without waiting for external motivation.

17. They Know When to Rest

Hard work is essential, but so is rest. They understand that proper breaks and recovery are necessary to maintain high performance in the long run.

Finally, High-potential employees aren’t just talented; they exhibit qualities that make them indispensable to any organization. By developing these behaviors, anyone can enhance their career prospects, contribute meaningfully, and become a valuable asset to their team.

CHAPTER – 7(xiii)

Let’s review Project Management for an interview !

1. What don’t you want to work on?

There are always bits of jobs we don’t like, but project managers typically work on the projects that they are assigned. It’s fine to have preferences, but you’re looking for someone who can respond to business needs even if that isn’t their top choice of project.

2. If you had to rate project management as a career, from 1-10 how would you rate it?

This will show you how they value their career and whether they see themselves progressing in a PM role. Ask them why they chose that rating.

3. What’s the most important thing for a project manager to do?

It will show you their priorities and whether they have actually thought about what a project manager does. It will also demonstrate whether they are a good cultural fit for your team. If you have a strong focus on process and they think the most important thing is to be flexible and adapt processes as you go, then you probably won’t get on.

4. What do you spend the most time doing each day ?

This gives you an indication of how they do their job. Someone who spends all day at the PC may suit your environment, or you might be looking for a project manager who gets out and visits clients most days of the week. Remember that they might be prepared to do something other than what they do now, so if you hear something that doesn’t fit with the post you are recruiting for, don’t rule them out before exploring this further.

5. How do you work with sponsors? How do you manage up?

Managing up means working well with people more senior than you. Project managers do this all the time, so it’s good to find out how they make those relationships work.

6. When was the last time you didn’t delegate and what happened?

This will help you work out if they are happy to be honest and tell you about a time that something went wrong. This shows their capacity to learn from mistakes and how they deal with information overload. Delegating work packages is key to project work and you’ll want to hire someone who understands that.

7. What was the most difficult ethical decision you’ve had to make on a project?

It can demonstrate their awareness of PMI Code of Ethics and even if they aren’t aware of that, their general approach to work. You can also use it to open up an interesting discussion and allow you to judge how they will fit into your business culture.

8. What criteria are you using to find your next job?

It will show you what’s important to them at work: green credentials, career progression, work/life balance, working for a big brand etc. It will also tell you if they are actively job hunting or whether they saw your ad and couldn’t resist (either is fine).

9. How have you improved project management processes at your current firm ?

Not everyone has the chance to work on business critical, exciting projects that make for a great CV, but everyone has the chance to offer some suggestions for improvements (even if they aren’t taken up). Look for someone who has ideas and who isn’t afraid to put them forward.

10. What creative problem solving techniques do you use ?

It’s worth probing the technical skills of candidates. Can they talk knowledgably about fishbone diagrams, De Bono’s thinking hats, role play? Branch out to talk about the last project issue they resolved with creative thinking.

11. How will you define a project ?

A project is a set of task/activities undertaken to create a product, services or results. These are temporary, in the sense that they are not routine work like production activity but most often one time set of activities undertaken.

12. Provide some examples.

A project for a product will result in a complete product or part of a product. An example would be the creation of the Microsoft Surprise tablet that used a liquid magnesium deposition process to create the enclosure. The process developed in the project will be used for subsequent production of the tablet. Examples could include development of a new product or process (as in the example), constructing a road or a bridge (infrastructure in general), developing a computer/information system, etc.

13. What is your view of Project Management ?

Project management involves applying the knowledge & skills of the project team members including the project manager, application of tools and techniques available to ensure the defined tasks are completed properly. Proper completion means implies achievement of end results within given cost and time constraints. It usually means balancing of the constraints of scope, budget, schedule, quality, risks and resources.

14. Are there distinct kinds of activities in a project ?

Most often any project goes through some easily identifiable set of activities during its lifetime. Some typical activities can be identified as related initiating a project. Planning set of activities are required to plan the activities to be undertaken to achieve the defined goals. Executing group of activities help getting the project done. A related set of activities are required to monitor and correct the course of actions to keep the project on the planned course charted for it. Final set of activities are related to the systematic closure of the project. Most important of which is, of course, to formally record what has been learnt during the execution of the project. When documented, this set of documents, related forms to be used, the way estimates are to be made, database of estimates of similar projects etc. are often referred to as Organizational process assets.

15. What do you think is the difference between projects, programs and a portfolio ?

Projects are undertaken for a specific or a set of related purposes. A program is a set of projects managed in a coordinated manner to achieve different parts of an overall goal. For example the NASA lunar landing program had the development of the command module and the lunar landing modules as separate projects. A portfolio is a collection of projects, programs and even other portfolios that help an organization achieve some common high level business purpose.

16. Who is a stakeholder ?

Any person, organization or an entity whose interest is affected, positively or negatively, because of the project. The influence of stakeholders is an important issue to take into account in any planning and subsequently during execution of it as well.

17. What are organizational influences ?

Every organization has a certain way of doing things, collective wisdom about how things can best be done, etc. and these influences the planning and execution processes. These influences need to be taken into account when estimating, planning for activities related to projects. These are often mentioned as organizational environmental factors.

18. Can you explain project life cycle ?

A project has distinct phases when the range of activities required to carry out the project work differ. There is a distinct “start” phase, followed by an organizing and preparing phase. “Carrying out” is the actual execution part of the project. “Closing” phase makes sure the temporary activities related to the project are closed systematically. The points in time when the phase changes happen are named variously as phase gate, exits, milestones or kill points. If a project is to be closed, it is decided at these stages based on the performance or if the need of the project has disappeared.

19. What to you understand by a project charter ?

This is a document where it all begins. Project authorization is done on this document and a project would be initiated with the top level requirements listed in this document. Initial requirements as seen by stakeholders and the outcomes of the project also are listed in it.

20. What do you understand by plan baselines ?

Baselines are the final version of all plans before the project execution starts. Project baselines are the starting versions of all related plans of a project, be it the time schedule, the quality plan, the communication plan or whatever. This acts as the reference against which project performance is measured.

21. What qualifications are required to be an effective project manager ?

Besides being a good professional manager, the PM needs to have additional personal skills for being effective. It is not only essential for him to have project management skills but be proficient in them. Attitude, core personality characteristics and leadership qualities are needed. Team management and leadership skills that help the team reach common objectives and goals are required.

22. What are processes and process groups ?

A process is a defined way of doing things. Not only does the process define the actions to be taken but also in what sequence they are to be carried out. Process groups are a set of processes that are applicable to various stages of a project. For example, initiating process group, planning process group, etc. Each of the processes has a defined set of inputs and produce defined outputs by applying a set of tools and techniques on the input.

23. What are the knowledge areas relevant to doing a project ?

Scope management, time and cost management knowledge areas are quite obvious. Same goes for quality management too. To complete a project in all its aspects one needs to be aware of the project integration knowledge area. Communications is an essential issue so is the communication management knowledge. Procurement and risk management are two vital support areas. Since people get things done Human resources management is also an equally important area.

24. What is RAID as it related to project management ?

RAID stand for risks, assumptions, issues and dependencies. These are vital items that a PM should always be aware of. There are always risks about actions and a PM must take least risk actions. Unless assumptions about any estimates or actions are clear, these can go wrong. Issues and dependencies also limit the choices of actions often.

25. What are the important processes for project integration management ?

It starts with a project charter development. Project management plan development is another important activity. Direct and manage project execution and monitor and control are plans that are to be followed all through the project. Closing of the project (or the current phase) is the final set of activities for integration management. Since changes are often unavoidable an integrated change management plan must be developed to guide all changes systematically.

26. What is a SOW ?

SOW or the statement of work is a detailed description of the outcomes of the project in terms of what products, services or results are expected from the project. Most detailed SOW are usually given by the customer if he is the one requesting the project.

27. What does Scope management involve ?
Typically this process involves collecting requirements, defining scope, creating WBS, verifying scope and controlling the scope. The project scope statement, WBS and WBS dictionary defines the scope baseline. Controlling the scope process must minimize scope creep.

28. How should changes controlled ?

Through the integrated change control process. Requested changes will have to be reviewed by a change control board. Only the approved changes shall be included in the document changes guiding project execution.

29. What is Work Breakdown Structure (WBD) and how does it affect the work estimates of tasks/activities ?
Work breakdown structure defines the work activities required for the project and the sub activities of each of the work requirement. The breakdown goes down to levels where all the work required is clearly understood. Work need not be broken down further than that. Work breakdown dictionary includes additional details that help define the tasks. Time and effort estimates can be accurate when everything about the work and dependencies are known.

30. How do you define a milestone ?

Milestone is a point in project schedule when some objective, a part of a result or a part of the planned services planned are achieved.

31. What are some techniques used for defining scope ?

Product breakdown, requirements analysis, systems engineering, systems analysis, value engineering, value analysis and alternatives analysis. Alternatives analysis can be helped by brain storming, lateral thinking and pair-wise comparisons, etc.

32. How do project scheduling help achieve project execution ?

When the activity effort and resource estimates are known getting the work done depends on how the tasks are sequenced. Dependencies with other activities have to be clearly known. The basic sequence is determined by what activities should be carried out first and what should follow. Unconnected tasks/activities can be sequenced in parallel to reduce project time. Most optimized sequencing would give you the best possible time needed given the resources allocation is ideal and there are no constraints there. Scheduling is done from activities list prepared after WBS has been finalized.

33. How is the “activity time” estimates done ?

Parametric estimates, three point estimates and analogous estimates are the techniques used for estimating activity time estimates.

34. How do you estimate in the three point estimating method ?
One optimistic estimate, a pessimistic estimate and one “most likey” estimate is considered for an activity. (Op estimate+6 X most likely+ pess. Estimate) is calculated and divided by 6. This result then may be further iterated. This is the estimate to be used.

35. How in the project time schedule represented most often ?
Activity scheduling network diagram is the most common form of representation for the project time schedule. This is often accompanied by milestone chart, and bar charts.

36. What is a critical path in schedule network diagram ?
When activity scheduling is done there will be activities whose start time and/or end times are not critical. It may be possible, due to dependencies, to start a task later than the date on the schedule, similarly an activity could be completed later as there are no other activity waiting for its completion. These time pads are called floats. There is always a path from start to finish, which does not have any floats. Not only all the activities in the path must be carried out in planned time, but also there cannot be any delays. Any delays will directly reflect on project completion time. This chain of activities or the path from start to finish is known as the critical path.

37. What are the ways a project time schedule can be compressed ?

Crashing and fast tracking are two methods of accelerating a project time schedule. Crashing method tries to optimize the schedule making use of the time floats available while keeping costs under control. Fast tracking is to make selected activities faster by applying additional resources if necessary. It may mean paying team members overtime, paying for the time of a consultant, etc.

38. What is effort variance?

It is the difference in estimated effort and the effort actually needed. Work performance is monitored periodically to find if there is any variance in efforts so that corrective actions could be taken.

39. What is EVM, earned value management ?

At every monitoring point the planned value (PV), earned value (EV) and actual cost (AC) are monitored. PMB, performance measurement baseline is the aggregation of all planned values. Variances from baselines are determined and Schedule variance (SV) and cost variance (CV) are calculated. If earned value is equal to the planned value then the project is achieving what it is supposed to. If there is schedule or cost variance is significant, appropriate action needs to be taken to correct the slips. Estimate at completion (EAC) is estimated and compared with budget at completion. In case there is a slip, the cost consequences will be known.

40. What does A processes ensure ?
According to a dictionary, “A is a way of systematic monitoring and evaluation of aspects of a project, service or facility to ensure that standards of quality are met”. Thus, whatever ensures products meet customer expectations are part of A efforts. Ensuring quality of everything that goes into making a product and that no mistakes are made while making it ensures quality.

41. What is quality control ?
QC procedures include inspections to ensure quality requirements are being met

42. What’s the need for process improvement plans ?

A cornerstone of A is that processes are continuously improved. Process improvements help mistakes in processes and thus help improve quality.

43. What is the tool used for arriving at improvements in processes ?

GM, or the goals, questions and metrics is the method used. Goals are set, questions are asked about what improvements can be made and metrics (measurements that tell us something about the process) are carried out

44. What are the important aspects of a HR plan for the project team ?

Acquiring the team, forming the team, assigning roles & responsibilities, appraisal policies, rewards & recognition are the areas where clear cut policies should exist and be well known to team members.

45. Why is the performance management process in the HR management plan important ?

People like to be recognized for their contributions. The project management team needs to recognize talent and reward and recognize the performers. The assessment should not only be fair but seen to be fair.

46. How do you determine the communication needs of stakeholders ?

The communication needs of stakeholders depend on their position in the power/influence grid, power/interest grid as also impact/influence grid. Salience modeling is another technique to determine who is the most effective for the interest of the project. This is a qualitative assessment and will determine the kind and details of communications they need on the project.

47. What are the types of risks you may encounter in a project ?

These could be categorized as technical, external, internal/organizational, etc. Depending on the type of projects other categories may have to be considered.

48. What is a risk register ?

This is a register/document that contains all the identified risks of a project. List of actions of potential actions are also included.

49. Are there any positive aspects of the risk identification process ?

The risk identification process may be able to come up with some opportunities too.

50. What is risk impact and probability ?

When assessing risks the project team also tries to determine the probability of the risk actually happening and the impact it will have on the project when it does.

51. What is the role of Isikawa/ Fishbone diagrams in determining root causes of risks ?

This is a graphical method of determining cause and effect relationships leading to a specific risk. One could then determine mitigation actions for that risk.

52. What do you understand of Pareto (80/20) principle/analysis ?

This is a statistical analysis method that helps decide priorities between several actions to be taken. The basis is that there are about 20% action which when executed gets you 80% of the results. In QA this is used to identify the 20% of causes that create 80% of the problems.

53. What are fixed type contracts in procurement processes ?

The seller must supply the contracted items at a fixed price determined at the time of contract.

54. What are time & material contracts ?

In this type of contracts the contractor gets paid for time used on the project and expenses for material used and other agreed upon expenses.

55. What is the primary purpose of procurement management plan ?

To determine what exactly is to be procured, ensure they are procured at the best price and is made available to the project team at the right time.

56. What does procurement administrator involve ?

To keep monitoring and ensure that all open procurement contracts are progressing as expected.

57. Why does a PM need to be very proactive ?

A PM needs to be able to see any signs of a deviation in time and/or cost to project progress as early as possible. This gives the team as much reaction time as possible to correct the situation or to minimize the impact.

58. Forming a team, developing the team and improving knowledge are direct responsibilities of the project manager, do you agree ?

It is the team that executes the project. Thus ensuring you has right people is essential. Developing the team is important as whatever gaps are there need to be bridged. Improving self and the team knowledge is equivalent to the continuous improvement of A process and should impact the quality of the project outcome.

59. Do you think professionalism and integrity are essential qualities of a PM ?

PM is charged with managing all aspects of the project. Unless he is a professional and has integrity there are many things that can go wrong. Not so truthful progress reporting will easily boomerang on the PM but the organization will have a delayed or a failed project.

60. Explain the team forming process ?

After the members are collected as a project team there is a turmoil before everything settles down. This is known as the forming-storming-norming performing process. The team people go through a storming of relationships before settling to the role assignment. Over time they then get used to the structure of the relationship, that is the norming phase. It is only after everybody has settled into their new roles that the team starts performing.

CHAPTER – 6

QUALITY CONTROL MANAGEMENT


Quality control is a critical component of operations management that ensures products and services meet predefined standards and customer expectations. In today’s competitive and customer-centric marketplace, quality is no longer an after-production activity limited to inspection and defect detection. Instead, it is an integrated, organization-wide responsibility embedded in every stage of operations—from design and procurement to production and delivery.


Modern organizations recognize that quality is not merely about compliance; it is about creating value, trust, and long-term customer relationships.


Understanding Quality Control
Quality control involves monitoring, measuring, and regulating processes to ensure that outputs conform to established quality standards. Traditionally, quality control focused on inspecting finished goods and rejecting defective products. However, this approach often led to high costs, rework, and customer dissatisfaction.


Modern quality control shifts the focus from detection to prevention, ensuring that defects are avoided at the source rather than corrected after occurrence.


Key Principles of Modern Quality Management


1. Prevention Rather Than Correction
Preventing defects is more efficient and cost-effective than correcting them. By improving processes, standardizing procedures, and identifying potential failures early, organizations can significantly reduce errors and waste.


2. Continuous Improvement
Quality is not a one-time achievement but an ongoing journey. Continuous improvement encourages organizations to regularly analyze performance, identify gaps, and implement incremental enhancements to processes, products, and services.


3. Employee Involvement
Quality is everyone’s responsibility. Engaging employees at all levels fosters ownership, accountability, and innovation. When employees actively participate in quality initiatives, problems are identified and resolved faster.


Quality Management Approaches


Six Sigma
Six Sigma is a data-driven quality management methodology that focuses on reducing defects and minimizing process variation. It uses the DMAIC framework—Define, Measure, Analyze, Improve, and Control—to systematically improve process performance.


Key benefits of Six Sigma include:
– Improved process consistency
– Reduced defect rates
– Better decision-making based on data


Six Sigma is widely used in manufacturing, healthcare, IT services, and financial institutions.


Lean Management
Lean management focuses on eliminating waste and improving process flow by delivering only what adds value to the customer. Waste may include excess inventory, waiting time, unnecessary motion, overproduction, and rework.


Lean principles help organizations:
– Improve speed and efficiency
– Reduce costs
– Enhance customer value
– Lean emphasizes simplicity, efficiency, and continuous learning.


Benefits of Effective Quality Management
Implementing robust quality control systems delivers multiple organizational benefits:
Reduced Rework and Defects
Improved processes and preventive controls minimize errors, saving time, effort, and resources.


Higher Customer Satisfaction
Consistent quality leads to reliable products and services, building customer trust and loyalty.


Lower Costs of Poor Quality
By reducing scrap, rework, returns, and warranty claims, organizations significantly lower the hidden costs associated with poor quality.


Strong Brand Reputation
High-quality products and services enhance brand image, differentiate the organization from competitors, and create long-term market advantage.


Quality as a Strategic Advantage
In the modern business environment, quality excellence has evolved from an operational requirement to a strategic advantage.

Organizations that consistently deliver high quality gain customer confidence, improve market positioning, and achieve sustainable profitability.


Quality-focused companies do not just meet standards—they set benchmarks for others to follow.


Quality control is no longer confined to inspection departments or quality manuals. It is a holistic approach that integrates prevention, continuous improvement, and employee involvement into the fabric of organizational culture.


By adopting modern quality management approaches such as Six Sigma and Lean, organizations can achieve superior performance, reduce costs, and enhance customer satisfaction. In an era where customers have unlimited choices, quality excellence is the key to long-term success and competitive leadership.

CHAPTER 6(i)

Who Should Choose Quality Control Management as an MBA Stream?


In today’s competitive business environment, quality has become a critical factor that defines an organization’s success, reputation, and customer loyalty. While products, services, and processes are designed to meet specific standards, maintaining consistent quality requires systematic monitoring, control, and continuous improvement. This is where Quality Control Management (QCM) plays a vital role.
Quality Control Management is a specialized stream in MBA programs that equips students with the knowledge and skills needed to ensure that products and services meet the desired standards of excellence. It involves processes, tools, and techniques for monitoring production, analyzing deviations, reducing errors, and ensuring compliance with both internal and external standards.
Choosing Quality Control Management as an MBA stream is not suitable for everyone—it demands a particular calibre of individuals who are detail-oriented, disciplined, analytical, and committed to excellence. This article explores in detail who should choose Quality Control Management, why it is important, and what personal attributes make someone suitable for this specialization.
Understanding Quality Control Management
What Is Quality Control Management?
Quality Control Management refers to the systematic procedures and policies implemented to maintain and improve product or service quality. It is closely linked with concepts like Total Quality Management (TQM), Six Sigma, Lean Management, and ISO standards, but focuses primarily on the practical monitoring and control of production or service delivery.
Key aspects of QCM include:
Monitoring production processes to detect deviations
Implementing statistical quality control techniques
Ensuring adherence to internal and external quality standards
Reducing defects, errors, and waste
Continuous process improvement and preventive measures
Compliance with regulatory and industry standards
Through these processes, Quality Control Management ensures customer satisfaction, operational efficiency, and long-term competitiveness.
Why Quality Control Management Has Become Essential
The significance of Quality Control Management has grown due to multiple factors:
Global Competition: Companies face international competition and must deliver consistent quality to survive.
Customer Expectations: Modern consumers expect flawless products and services, leaving no room for errors.
Regulatory Requirements: Industries like pharmaceuticals, food, healthcare, and electronics must comply with strict quality standards.
Cost Management: Reducing defects, rework, and wastage directly impacts profitability.
Technological Advancements: Automation, AI, and digital manufacturing require sophisticated quality monitoring techniques.
In this scenario, organizations need trained quality professionals who can design systems, monitor performance, and implement continuous improvement practices.
1. Individuals Who Are Detail-Oriented
Attention-to-Detail Calibre
Quality Control Management requires meticulous observation and precision. Individuals who thrive in this stream:
Notice small deviations in processes, products, or services
Are thorough in checking specifications and standards
Can identify errors before they escalate into larger problems
People who are naturally methodical, observant, and cautious will excel in quality control, as the field leaves little room for oversight.
2. Individuals With Strong Analytical Skills
Analytical Calibre
QCM is highly data-driven. Professionals need to analyze metrics, detect trends, and make informed decisions. Those suited for this stream:
Enjoy working with numbers and statistics
Can interpret data to identify defects and their causes
Are skilled at problem-solving using analytical frameworks like Six Sigma, Pareto Analysis, and Root Cause Analysis
Analytical thinkers can transform raw data into actionable insights, ensuring processes remain efficient and defect-free.
3. Individuals Who Value Discipline and Process Orientation
Process-Oriented Calibre
Quality Control relies heavily on structured processes and standardized workflows. Individuals who are disciplined, follow rules, and appreciate well-defined procedures are ideal for this stream. They can:
Maintain consistency in inspections
Ensure adherence to regulatory and industry standards
Implement preventive and corrective measures effectively
People who dislike routine or struggle with following structured guidelines may find this field challenging.
4. Individuals Interested in Continuous Improvement
Improvement-Oriented Calibre
Quality Control Management is not just about detecting errors—it’s about reducing defects over time and improving processes. Individuals who are suited for QCM:
Believe that processes can always be optimized
Are eager to implement Lean, Six Sigma, or Total Quality Management strategies
Encourage learning from mistakes and standardizing best practices
This mindset is critical for building a culture of quality and operational excellence within organizations.
5. Individuals Who Can Handle Responsibility and Pressure
Responsibility Calibre
Quality errors can have significant consequences:
Product recalls can damage brand reputation
Defective services can impact customer trust
Regulatory non-compliance can lead to penalties
Individuals in quality control must:
Make decisions with accountability
Handle pressure calmly
Resolve problems quickly and efficiently
Those who are comfortable taking responsibility and working under pressure are well-suited for this stream.
6. Individuals Comfortable With Technology and Automation
Tech-Savvy Calibre
Modern quality control increasingly relies on technology, automation, and digital monitoring systems. Professionals must work with:
Automated testing equipment
Statistical process control software
ERP and quality management systems (QMS)
Data analytics and IoT-based quality monitoring
Individuals who are technologically inclined and can adapt to digital tools can leverage QCM to drive precise, real-time improvements.
7. Individuals With Strong Ethical Standards
Ethical Calibre
Quality Control professionals often face situations requiring honesty and integrity, especially when reporting defects, failures, or non-compliance. Suitable individuals:
Prioritize truth and transparency
Avoid shortcuts that compromise quality
Uphold organizational and social responsibility
Ethical standards are crucial in industries like pharmaceuticals, healthcare, and food, where poor quality can endanger lives.
8. Individuals Interested in Customer Satisfaction
Customer-Oriented Calibre
Quality is directly linked to customer experience. Professionals in QCM:
Understand customer expectations
Ensure products/services meet or exceed standards
Implement feedback loops for continuous improvement
People passionate about delivering excellence and creating satisfied customers will find this stream rewarding.
9. Individuals From Engineering or Science Backgrounds
Background Compatibility
Quality Control Management is particularly suited to graduates from:
Mechanical, Production, or Industrial Engineering
Electronics and Electrical Engineering
Biotechnology, Pharmacy, and Life Sciences
Science and Applied Technology
These individuals often have a strong foundation in processes, measurements, and analytical thinking, which aligns well with QCM principles.
10. Individuals Seeking Long-Term Career Stability
Career Stability Calibre
Quality Control Management offers consistent demand across industries:
Manufacturing
Pharmaceuticals and healthcare
Food and beverages
Electronics and IT hardware
Automobiles and logistics
Professionals with a long-term, stable career vision will find ample opportunities in quality assurance, process improvement, and operational excellence roles.
Who Should Avoid Quality Control Management?
Quality Control Management may not suit individuals who:
Dislike routine inspections and repetitive tasks
Are uncomfortable with structured workflows and standards
Avoid responsibility or pressure situations
Prefer highly creative or unstructured roles
Are not detail-oriented or analytical
Career Opportunities After MBA in Quality Control Management
MBA graduates in QCM can pursue roles such as:
Quality Manager / Quality Assurance Manager
Process Improvement Manager
Six Sigma Consultant
Quality Analyst / Auditor
Compliance and Regulatory Manager
Operations and Production Manager (with QC focus)
Industries employing QCM professionals include manufacturing, healthcare, pharmaceuticals, automotive, food processing, logistics, and IT hardware.
Why Choose Quality Control Management as an MBA Stream?
High Demand: Every industry needs quality professionals to ensure compliance and customer satisfaction.
Intellectual Challenge: Problem-solving, data analysis, and process improvement make it stimulating.
Impactful Role: Directly influences organizational efficiency, customer trust, and profitability.
Career Growth: Opportunities to move into senior management, operations, or consulting roles.
Global Relevance: Quality standards are universal, offering international career opportunities.
Conclusion
Quality Control Management as an MBA stream is ideal for individuals with analytical thinking, attention to detail, ethical integrity, discipline, and a commitment to continuous improvement. It is a field for those who value precision, operational excellence, and customer satisfaction. While it may involve structured processes, repetitive monitoring, and high responsibility, the impact of this work is significant—ensuring products and services meet the highest standards, enhancing brand reputation, and driving long-term organizational success.
For MBA aspirants who want a career that combines analytical skills, process expertise, and meaningful impact, Quality Control Management offers a stable, rewarding, and future-ready path across industries globally.

CHAPTER – 6(ii)

Project Quality Assurance

Every project delivers something at the end of the project execution. When it comes to the project initiation, the project management and the client collaboratively define the objectives and the deliveries of the project together with the completion timelines.

During the project execution, there are a number of project deliveries made. All these deliveries should adhere to certain quality standards as well as specific client (user) requirements.

Therefore, each of these deliveries should be validated and verified before delivering to the client. For that, there should be a Quality Assurance Function, which runs from start to the end of the project.

When it comes to the Quality, not only the Quality of the deliveries that matter the most. The processes or activities that produce deliverables should also adhere to certain quality guidelines as well.

As a principle, if the processes and activities that produce the deliverables do not adhere to their own quality standards (process quality standards), then there is a high probability that deliverables not meeting the delivery quality standards.

To address all the quality requirements, standards and quality assurance mechanisms in a project, a document called ‘Project Quality Plan’ is developed by the project team. This plan acts as the ‘Holy book of Quality’ for the project and all the stakeholders of the project should adhere to the project quality plan.

The Components of a Project Quality Plan :

Depending on the nature of the nature of the project, the components or the areas addressed by a quality plan may vary. However, there are some components that can be found in any type of quality plan.

Let’s have a look at the most essential attributes of a project quality plan.

1. Responsibility of Management

This describes how the management is responsible for achieving the project quality. Since management is the controlling and monitoring function for the project, project quality is mainly a management responsibility.

2. Document Management and Control

Documents are the main method of communication in project management. Documents are used for communication between the team members, project management, senior management and the client.

Therefore, the project quality plan should describe a way to manage and control the documents used in the project. Usually, there can be a common documentation repository with controlled access in order to store and retrieve the documents.

3. Requirements Scope

The correct requirements to be implemented are listed here. This is an abstraction of the requirements sign-off document. Having requirements noted in the project quality plan helps the quality assurance team to correctly validate them.

This way, quality assurance function knows what exactly to test and what exactly to leave out from the scope. Testing the requirements that are not in the scope may be a waste for the service provider.

4. Design Control

This specifies the controls and procedures used for the design phase of the project. Usually, there should be design reviews in order to analyse the correctness of the proposed technical design. Once the designs are reviewed and agreed, they are signed-off with the client (user).

With the time, the client may come up with changes to the requirements or new requirements. In such cases, design may be changed. Every time the design changes, the changes should be reviewed and signed-off.

5. Development Control

Once the project starts, all the processes, procedures and activities should be closely monitored and measured. By this type of control, the project management can make sure that the project is progressing in the correct path.

6. Testing and Quality Assurance

This component of the project quality plan takes precedence over other components. This is the element, which describes the main quality assurance functions of the project. This section should clearly identify the quality objectives for the project and the approach to achieve them.

7. Risks & Mitigation

This section identifies the project quality risks. Then, the project management team should come up with appropriate mitigation plans in order to address each quality risk.

8. Quality Audits

Very important, for every project, regardless of its size or the nature, there should be periodic quality audits to measure the adherence to the quality standards. These audits can be done by an internal team or an external team.
Sometimes, the client may employ external audit teams to measure the compliance to standards and procedures of the project processes and activities.

9. Defect Management

During testing and quality assurance, defects are usually caught. This is quite common when it comes to software development projects. The project quality plan should have guidelines and instructions on how to manage the defects.

10. Training Requirements

Every project team requires some kind of training before the project commences. For this, a skill gap analysis is done to identify the training requirements at the project initiation phase. I have seen that this step is missing practically in most of the projects.

The project quality plan should indicate these training requirements and necessary steps to get the staff trained.

Concluding, Project Quality plan is one of the mandatory documents for any type of project. As long as a project has defined objectives and deliverables, there should be a project quality plan to measure the delivery and process quality.

CHAPTER – 6(iii)

What is Six Sigma ?

Six Sigma (6σ) is a quality management methodology whose goal is to minimize defects (errors) in a process and maximize consistency, efficiency, and customer satisfaction.


Simple Meaning of Six Sigma
Six Sigma means a system : where there are only 3.4 defects per one million opportunities
(3.4 DPMO – Defects Per Million Opportunities) In other words, the process runs with about 99.99966% accuracy.


Objective of Six Sigma
– Reduce errors and waste
– Make processes stable and predictable
– Reduce costs
– Improve quality and customer satisfaction


How Does Six Sigma Work ?
Six Sigma mainly follows the DMAIC model:
Define
What is the problem?
What does the customer want?
Measure
Measure current performance
Collect relevant data
Analyze
Identify the root cause of problems
Analyze data
Improve
Implement solutions
Improve the process
Control
Sustain the improvements
Set up monitoring and control systems


Where Is Six Sigma Used ?
– Manufacturing
– IT & Software
– Healthcare
– Banking & Finance
– Education
– Logistics
– Government projects


Six Sigma Levels
Six Sigma uses a belt system similar to martial arts:
Belt
– Role
– White Belt
– Basic awareness
– Yellow Belt
– Team member
– Green Belt
– Process improvement leader
– Black Belt
– Expert and project leader
– Master Black Belt
– Trainer and strategist


Six Sigma vs Lean
Six Sigma: Focuses on reducing defects
Lean: Focuses on reducing waste
Together, they are called Lean Six Sigma


Benefits of Six Sigma
– Better product and service quality
– Cost savings
– Data-driven decision-making
– Strong problem-solving skills
– Career growth (certification is highly valued)


Here are some simple examples showing how Six Sigma can improve processes:


Banking: If a bank processes 10,000 loan applications and 200 contain mistakes, the process has errors. After applying Six Sigma, errors can be reduced to just 2–3 applications.


Restaurant: If a restaurant serves 5,000 meals and 100 orders are wrong, the process quality is low. With Six Sigma, wrong orders can be reduced to 1–2 only.


Software Development: If a software team releases 1,000 features and 50 have bugs, the process is weak. Six Sigma can reduce bugs to 1–2 features.


Logistics: If a delivery company ships 20,000 packages and 100 are delayed or lost, the process needs improvement. After Six Sigma, delays or losses can drop to 1–2 packages.


Retail: If a store receives 1,000 invoices and 20 have errors, Six Sigma can reduce invoice errors to almost zero.

CHAPTER – 6(iv)

Where Is Six Sigma Used ?

In the –
– Manufacturing
– IT & Software
– Healthcare
– Banking & Finance
– Education
– Logistics
– Government projects


Detailed Role of Six Sigma Across Industries
Six Sigma is widely used in both private and public sectors to improve quality, reduce defects, optimize processes, and enhance customer satisfaction. Its data-driven approach makes it adaptable to almost every industry.


1. Manufacturing

Manufacturing is the origin of Six Sigma. It is used to eliminate defects, improve product quality, and reduce production costs.
Applications
– Reducing product defects
– Improving process consistency
– Minimizing rework and scrap
– Optimizing machine performance
– Improving supplier quality
Tools Used
– Statistical Process Control (SPC)
– Root Cause Analysis
– Process Capability (Cp, Cpk)
-Design of Experiments (DOE)
Benefits
– Near-zero defects
– Lower production cost
– Higher customer satisfaction
– Improved safety and reliability

2. IT & Software

In IT and software development, Six Sigma improves process efficiency, delivery quality, and defect reduction rather than physical products.
Applications
– Reducing software bugs
– Improving code quality
– Optimizing development life cycle
– Reducing system downtime
– Improving customer support response time
Tools Used
– DMAIC for process improvement
– Defect tracking metrics
– Process flow analysis
– Root cause analysis for failures
Benefits
– Faster delivery
– Fewer post-release defects
– Improved customer experience
– Predictable project timelines

3. Healthcare

Six Sigma plays a vital role in patient safety, service quality, and cost control in healthcare systems.
Applications
– Reducing medical errors
– Improving patient waiting time
– Enhancing diagnostic accuracy
– Optimizing hospital workflows
– Improving pharmacy and lab accuracy
Tools Used
– Process mapping
– Failure Mode and Effects Analysis (FMEA)
– Root cause analysis
– Control charts
Benefits
– Improved patient safety
– Reduced treatment errors
– Better healthcare outcomes
– Lower operational costs


4. Banking & Finance

In banking and finance, Six Sigma improves transaction accuracy, customer service, and compliance.
Applications
– Reducing transaction errors
– Improving loan processing time
– Enhancing fraud detection
– Improving customer complaint resolution
– Ensuring regulatory compliance
Tools Used
– Process capability analysis
– Risk assessment
– Data analytics
– Cycle time reduction
Benefits
– Higher accuracy
– Faster service delivery
– Reduced financial risk
– Increased customer trust


5. Education

Six Sigma helps educational institutions improve academic quality, administrative efficiency, and student satisfaction.
Applications
– Improving admission processes
– Reducing administrative delays
– Enhancing teaching effectiveness
– Improving exam evaluation accuracy
– Increasing student retention
Tools Used
– Process mapping
– Survey analysis
– Root cause analysis
– Performance metrics
Benefits
– Better learning outcomes
– Improved institutional reputation
– Efficient administration
– Higher student satisfaction


6. Logistics & Supply Chain

In logistics, Six Sigma ensures timely delivery, inventory accuracy, and cost efficiency.
Applications
– Reducing delivery delays
– Improving warehouse efficiency
– Optimizing inventory levels
– Reducing transportation errors
– Improving supplier coordination
Tools Used
– Process flow analysis
– Lead time reduction
– Demand forecasting
– Root cause analysis
Benefits
– Faster deliveries
– Lower logistics costs
– Improved supply chain visibility
– Higher customer satisfaction


7. Government Projects

Governments use Six Sigma to improve public service delivery, transparency, and operational efficiency.
Applications
– Reducing delays in public services
– Improving infrastructure project execution
– Enhancing citizen services
– Reducing corruption and waste
– Improving policy implementation
Tools Used
– Process standardization
– Performance measurement
– Root cause analysis
– Data-driven decision-making
Benefits
– Faster public service delivery
– Reduced cost overruns
– Increased transparency
– Improved citizen trust


Overall Impact of Six Sigma
Industry.                        Key Focus
Manufacturing.            Defect reduction
IT & Software.              Process efficiency
Healthcare.                   Patient safety
Banking & Finance.    Accuracy & compliance
Education.                    Quality & efficiency
Logistics.                      Speed & reliability
Government.                Transparency & effectiveness                                              


Hence, Six Sigma is not limited to factories or manufacturing environments—it is a universal framework for continuous improvement. Wherever there is a defined process, measurable data, and variation in performance, Six Sigma can be effectively applied. By focusing on reducing errors, improving consistency, and enhancing efficiency, Six Sigma delivers measurable and sustainable results across industries. Its structured, data-driven approach helps organizations achieve higher quality, better customer satisfaction, and long-term operational excellence.

CHAPTER – 6(v)

Myths about Six Sigma

Six Sigma is a methodology for pursuing continuous improvement in customer satisfaction and profit. It is a management philosophy attempting to improve effectiveness and efficiency. Six Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services.

Six Sigma’s aim is to eliminate waste and inefficiency, thereby increasing customer satisfaction by delivering what the customer is expecting.
Six Sigma follows a structured methodology, and has defined roles for the participants.

Six Sigma is a data driven methodology, and requires accurate data collection for the processes being analyzed.
Six Sigma is about putting results on Financial Statements.

Six Sigma is a business-driven, multi-dimensional structured approach for:
a. Improving Processes
b. Lowering Defects
c. Reducing process variability
Reducing costs
d. Increasing customer satisfaction
e. Increased profits.

The central idea behind Six Sigma: If you can measure how many “defects” you have in a process, you can systematically figure out how to eliminate them and get as close to “zero defects” as possible.

Concepts of Six Sigma

1. Critical to Quality : Attributes most important to the customer.

2. Defect : Failing to deliver what the customer wants.

3. Process Capability : What your process can deliver.

4. Variation : What the customer sees and feels.

5. Stable Operations : Ensuring consistent, predictable processes to improve what the customer sees and feels.

6. Design for Six Sigma : Designing to meet customer needs and process capability.

Our Customers Feel the Variance, Not the Mean. So Six Sigma focuses first on reducing process variation and then on improving the process capability.

Myths about Six Sigma

There are several myths and misunderstandings surrounding Six Sigma. Some of them few are given below:

1. Six Sigma is only concerned with reducing defects.

2. Six Sigma is a process for production or engineering.

3. Six Sigma cannot be applied to engineering activities.

4. Six Sigma uses difficult-to-understand statistics.

4. Six Sigma is just training.

Benefits of Six Sigma

Six Sigma offers six major benefits that are:

1. Generates sustained success
2. Sets a performance goal for everyone
3. Enhances value to customers
4. Accelerates the rate of improvement
5. Promotes learning and cross pollination
6. Executes strategic change

There are three key elements of Six Sigma Process Improvement:

1. Customers
2. Processes
3. Employees

Let us discuss in brief as follows:

1. The Customers:
Customers define quality. They expect performance, reliability, competitive prices, on-time delivery, service, clear and correct transaction processing and more. This means it is important to provide what the customers need to gain customer delight.

2. The Processes:
Defining processes as well as defining their metrics and measures is the central aspect of Six Sigma. In a business, the quality should be looked form the customer’s perspective and so we must look at a defined process from the outside-in. By understanding the transaction lifecycle from the customer’s needs and processes, we can discover what they are seeing and feeling. This gives a chance to identify weak areas with in a process and then we can improve them.

3. The Employees :
A company must involve all its employees in the Six Sigma program. Company must provide opportunities and incentives for employees to focus their talents and ability to satisfy customers. It is important to Six Sigma that all the team members should have a well-defined role with measurable objectives. Under a Six Sigma program, the members of an organization are assigned specific roles to play, each with a title. This highly structured format is necessary in order to implement Six Sigma throughout the organization.

There are seven specific responsibilities or “role areas” in a Six Sigma program, which are as follows :

1. Leadership
A leadership team or council defines the goals and objectives in the Six Sigma process. Just as a corporate leader sets a tone and course to achieve an objective, the Six Sigma council sets the goals to be met by the team. Here is the list of leadership Council Responsibilities :
* Defines the purpose of the Six Sigma program
* Explains how the result is going to benefit the customer
* Sets a schedule for work and interim deadlines
* Develops a mean for review and oversight
* Support team members and defend established positions

2. Sponsor
Six Sigma sponsors are high-level individuals who understand Six Sigma and are committed to its success. The individual in the sponsor role acts as a problem solver for the ongoing Six Sigma project.

Six Sigma is generally led by a full-time, high-level champion, such as an Executive Vice President. Sponsors are the owners of processes and systems, who help initiate and coordinate Six Sigma improvement activities in their areas of responsibilities.

3. Implementation Leader
The person responsible for supervising the Six Sigma team effort, who supports the leadership council by ensuring that the work of the team is completed in the desired manner, is the implementation Leader.

Ensuring success of the implementation plan and solving problems as they arise, training as needed, and assisting sponsors in motivating the team are some of the key responsibilities of an implementation leader.

4. Coach
Coach is a Six Sigma expert or consultant who sets a schedule, defines result of a project, and who mediates conflict, or deals with resistance to the program.

Duties include working as a go-between for sponsor and leadership, scheduling the work of the team, identifying and defining the desired results of the project, mediating disagreements, conflicts, and resistance to the program and identifying success as it occurs.

5. Team Leader
It is an individual responsible for overseeing the work of the team and for acting as a go-between with the sponsor and the team members.

Responsibilities include communication with the sponsor in defining project goals and rationale, picking and assisting team members and other resources, keeping the project on schedule, and keeping track of steps in the process as they are completed.

6. Team Member
An employee who works on a Six Sigma project, given specific duties within a project, and has deadlines to meet in reaching specific project goals.
Team members execute specific Six Sigma assignments and work with other members of the team within a defined project schedule, to reach specifically identified goals.

7. Process Owner
The individual who takes on responsibility for a process after a Six Sigma team has completed its work.

Extended Definitions of Roles Belt – Colors

The assignment of belt colors to various roles is derived from the obvious source, the martial arts. Based on experience and expertise following roles have evolved over the year.

The belt names are a tool for defining levels of expertise and experience. They do not change or replace the organizational roles in the Six Sigma process.

Black Belt
The person possessing this belt has achieved the highest skill level and is an experienced expert in various techniques. As applied to the Six Sigma program, the individual designated as a

Black Belt has completed a thorough internal training program and has the experience working on several projects.
The black belt holder is usually given the role of a team leader, the person who is responsible for execution and scheduling.

Master Black Belt
A person who deals with the team or its leadership; but is not a direct member of the team itself. This may be equivalent to the role played by the coach, or for more technical and complex projects.

The Master Black Belt is available to answer procedural questions and to resolve the technical issues that come up.

Green Belt
The Green Belt designation can also belong to the team leader or to a member of the team working directly with the team leader.

A Green Belt is less experienced than a Black Belt but is cast in a key role within the team.

The starting point in gearing up for Six Sigma is to verify if you are ready to embrace a change that says.”There is a better way to run your organization.”

Is Six Sigma Right for You ?

There are a number of essential questions and facts that you need to consider in making a readiness assessment:

* Is the strategic course clear for the company?

* Is the business healthy enough to meet the expectations of analysts and investors?

* Is there a strong theme or vision for the future of the organization that is well understood and consistently communicated?

* If the organization good at responding effectively and efficiently to new circumstances?

* Evaluating current overall business results.

* Evaluating how effectively do we focus on and meet customers requirements.

* Evaluating how effectively are we operating.

* How effective are your current improvement and change management systems?

* How well are your cross-functional processes managed?

* What other change efforts or activities might conflict with or support Six Sigma initiative?

Six Sigma demands investments. If you cannot make a solid case for future or current return, then it may be better to stay away.

There could be many questions to be answered to have an extensive assessment before deciding if you should go for Six Sigma or not. This may need time and a thorough consultation with Six Sigma Experts to take a better decision.

The Cost of Six Sigma Implementation : Some of the most important Six Sigma budget items can include the following :

* Direct Payroll for the individuals dedicated to the effort full time.

* Indirect Payroll for the time devoted by executives, team members, process owners and others, involved in activities like data gathering and measurement.

* Training and Consultation fee to teach Six Sigma Skills and getting advice on how to make efforts successful.

* Improvement Implementation Cost.

Six Sigma Start-up

Deploying Six Sigma within an organization is a big step and involves many activities including define, measure, analyze, improve, and control phases.

Here are some steps, which are required for an organization at the time of starting Six Sigma implementation.

1. Plan your own route: There may be many paths to Six Sigma but the best is the one that works for your organization.

2. Define your objective: It is important to decide what you want to achieve, and priorities are important.

3. Stick to what is feasible: Set up your plans so that they can match your influences, resources and scope.

4. Preparing Leaders: They are required to launch and guide the Six Sigma Effort.

5. Creating Six Sigma organization: This includes preparing Black Belts and other roles and assigning them their responsibilities.

6. Training the organization: Apart from having black belts, it is required to impart training of Six Sigma to all the employees in the organization.

7. Piloting Six Sigma effort: Piloting can be applied to any aspect of Six Sigma including solutions derived from process improvement or design redesign projects.

Project Selection for Six Sigma

One of the most difficult challenges in Six Sigma is the selection of the most appropriate problem to attack.

There are generally two ways to generate projects :

1. Top-down: This approach is generally tied to business strategy and is aligned with customer needs. The major weakness is they are too broad in scope to be completed in a timely manner (most six sigma projects are expected to be completed in 3-6 months).

2. Bottom-up: In this approach, Black Belts choose the projects that are well-suited for the capabilities of teams. A major drawback of this approach is that, projects may not be tied directly to strategic concerns of the management thereby, receiving little support and low recognition from the top.

Six Sigma has two key methodologies:

1. DMAIC: It refers to a data-driven quality strategy for improving processes. This methodology is used to improve an existing business process.

2. DMADV: It refers to a data-driven quality strategy for designing products & processes. This methodology is used to create new product designs or process designs in such a way that it results in a more predictable, mature and defect free performance.

There is one more methodology called  Design For Six Sigma (DFSS). DFSS is a data-driven quality strategy for designing or redesigning a product or service from the ground up. Sometimes a DMAIC project may turn into a DFSS project because the process in question requires complete redesign to bring about the desired degree of improvement.

CHAPTER – 6(vi)


Benefits of Six Sigma

Six Sigma is more than a quality tool; it is a management philosophy that drives excellence, efficiency, and continuous improvement. Its benefits are visible at organizational, operational, and individual career levels.


1. How Six Sigma Improves Quality
Six Sigma focuses on reducing variation and defects in processes. By identifying root causes of errors and eliminating them, products and services become more consistent, reliable, and predictable.
* Key Contributions
* Standardized processes
* Fewer defects and rework
* Improved consistency
* Higher customer satisfaction


2. How Six Sigma Reduces Costs
Defects, delays, and inefficiencies are costly. Six Sigma systematically removes waste, rework, and inefficiencies, leading to substantial financial savings.
* Areas of Cost Reduction
* Reduced scrap and rework
* Lower warranty claims
* Optimized manpower utilization
* Reduced process cycle time

3. Why Data Matters in Six Sigma
Six Sigma replaces assumptions and opinions with facts and statistical analysis. Decisions are based on measurable data rather than intuition.
* Key Tools Used
* Statistical analysis
* Control charts
* Pareto analysis
* Hypothesis testing
* Impact
* Accurate identification of problems
* Reliable prediction of outcomes
* Reduced risk in decision-making


4. How Six Sigma Builds Problem Solvers
Six Sigma teaches a structured and logical approach to problem-solving through the DMAIC framework.
* Problem-Solving Capabilities Developed
* Root cause analysis
* Logical thinking
* Systematic troubleshooting
* Risk assessment
* Professional Impact
Employees trained in Six Sigma:
* Think analytically
* Solve complex problems
* Handle uncertainty effectively
* Result
Organizations gain confident, capable leaders who can solve problems permanently—not temporarily.

5. Why Six Sigma Certification Is Highly Valued
Six Sigma certifications demonstrate:
– Process excellence expertise
– Leadership capability
– Data-driven mindset
-Global quality standards knowledge
Career Benefits
– Higher employability
– Salary growth
– Leadership opportunities
– Cross-industry mobility
Who Benefits Most
– Engineers
– Managers
– IT professionals
– Healthcare administrators
– Consultants
– Global Recognition
Six Sigma is recognized worldwide by top organizations.

Summary of Benefits
Benefit.                       .         Impact
Better Quality.                       Fewer defects, happier customers
Cost Savings.                        Reduced waste, higher profits
Data-Based Decisions.        Accuracy and confidence
Problem-Solving Skills.        Long-term solutions
Career Growth.                      High demand, better pay


Hence Six Sigma delivers a win-win advantage:
– Organizations gain efficiency, quality, and profitability
– Professionals gain skills, credibility, and career growth
– It transforms how work is done and how people think.

CHAPTER – 6(vii)

Six Sigma Methodologies

Six Sigma has three key Methodologies.

1. DMAIC Methodology: It refers to a data-driven quality strategy for improving processes. This methodology is used to improve an existing business process.

This methodology consists of the following five steps.

1. Define – the problem or project goal that needs to be addressed.

2. Measure – the problem and process from which it was produced.

3. Analyze – data and process to determine root causes of defects and opportunities.

4. Improve –  the process by finding solutions to fix, diminish, and prevent future problems.

5. Control – Implement, control, and sustain the improvements solutions to keep the process on the new course.

2. DMADV Methodology : It refers to a data-driven quality strategy for designing products & processes. This methodology is used to create new product designs or process designs in such a way that it results in a more predictable, mature and defect free performance.

This methodology consists of five steps:

1. Define – the Problem or Project Goal that needs to be addressed.

2. Measure – and determine customers needs and specifications.

3. Analyze – the process to meet the customer needs.

4. Design – a process that will meet customers needs.

5. Verify – the design performance and ability to meet customer needs.

3. DFSS Methodology :  It is a data-driven quality strategy for designing or redesigning a product or service from the ground up.

DFSS is a separate and emerging discipline related to Six Sigma quality processes. This is a systematic methodology utilizing tools, training, and measurements to enable us to design products and processes that meet customer expectations and can be produced at Six Sigma Quality levels.

This methodology can have the following five steps.

1. Define -what the customers want, or what they do not want.

2. Identify -the customer and the project.

3. Design – a process that meets customers needs.

4. Optimize – Determine process capability and optimize the design.

5. Verify – Test, verify, and validate the design.

There are five high-level steps in the application of Six Sigma to improve the quality of output. The first step is Define.

During the Define phase, four major tasks are undertaken :

Task#1. Project Team Formation Perform two activities:


    (i) Determine who needs to be on the team.
    (ii) What roles will each person perform ?

Picking the right team members can be a difficult decision, especially if a project involves a large number of departments. In such projects, it could be wise to break them down into smaller pieces and work toward completion of a series of phased projects.

Task#2. Document Customers Core Business Processes


Every project has customers. A customer is the recipient of the product or service of the process, targeted for improvement. Every customer has one or multiple needs from his or her supplier. For each need provided for, there are requirements for the need.

The requirements are the characteristics of the need that determine whether the customer is happy with the product or service provided. So, document customer needs and related requirements.

A set of business processes is documented. These processes will be executed to meet customer’s requirements and to resolve their Critical to Quality issues.

Task#3. Develop a Project Charter


This is a document that names the project, summarizes the project by explaining the business case in a brief statement, and lists the project scope and goals. A project charter has the following components:
1. Project name
2. Business case
3. Project scope
4. Project goals
5. Milestones
6. Special requirements
7. Special assumptions
8. Roles and responsibilities of the project team

Task#4. Develop the SIPOC process map:


A process is defined as a series of steps and activities that take inputs, add value, and produce an output.

SIPOC is a process map that identifies all the following elements of a project:
1. Suppliers
2. Input
3. Process
4. Output
5. Customers

The SIPOC process map is essential for identifying:
1. The way processes occur currently.
2. How those processes should be modified and improved throughout the remaining phases of DMAIC.

Concluding, the design phase, you should know who the customer or end-user is, their resistance issues, and requirements. You should also have a clear understanding of goals and the scope of the project including budget, time constraints, and deadlines.
During the Measure Phase, the overall performance of the Core Business Process is measured.

CHAPTER – 6(viii)

Analysis Process in Six Sigma

1. Source Analysis
This is also called root cause analysis. It attempts to find defects that are derived from the sources of information or work generation. After finding the root cause of the problem, attempts are made to resolve the problem before we expect to eliminate defects from the product.

Three Steps to Root Cause Analysis :-

1. The open step: During this phase, the project team brainstorms all the possible explanations for current sigma performance.

2. The narrow step: During this phase, the project team narrows the list of possible explanations for current sigma performance.

3.The close step: During this phase, the project team validates the narrowed list of explanations that explain sigma performance.

2. Process Analysis

Analyze the numbers to find out how well or poorly the processes are working, compared to what’s possible and what the competition is doing.
Process analysis includes creating a more detailed process map, and analyzing the more detailed map, where the greatest inefficiencies exist.

The source analysis is often difficult to distinguish from process analysis. The process refers to the precise movement of materials, information, or requests from one place to another.

3. Data Analysis

Use of measures and data (those already collected or new data gathered in the analyze phase) to discern patterns, tendencies or other factors about the problem that either suggest or prove/disprove possible cause of the problem.

The data itself may have defect. There may be a case when products or deliverables do not provide all the needed information. Hence data is analyzed to find out defects and attempts are made to resolve the problem before we expect to eliminate defects from the product.

4. Resource Analysis

We also need to ensure that employees are properly trained in all departments that affect the process. If training is inadequate, you want to identify that as a cause of defects.

Other resources include raw materials needed to manufacture, process, and deliver the goods. For example, if the Accounting Department is not paying vendor bills on time and, consequently, the vendor holds up a shipment of shipping supplies, it becomes a resource problem.

5. Communication Analysis

One problem common to most processes high in defects is poor communication. The classic interaction between a customer and a retail store is worth studying because many of the common communication problems are apparent in this case.

The same types of problems occur with internal customers as well, even though we may not recognize the sequence of events as a customer service problem.
The exercise of looking at issues from both points of view is instructive. A vendor wants payment according to agreed-upon terms, but the Accounting Department wants to make its batch processing uniform and efficient. Between these types of groups, such disconnects demonstrates the importance of communication analysis.

Hence, Analysis can take several forms. Some Six Sigma programs tend to use a lot of diagrams and worksheets, and others prefer discussion and list making.

There are many tools that can be used to perform analysis like Box Plot, Cause and Effect Diagram, Progressive Analysis, Ranking, Pareto Analysis, Prioritization Matrix, Value Analysis, etc.

The proper procedure is the one that works best for your team, provided that the end result is successful.

CHAPTER – 6(ix)

Technical Tools of Six Sigma

The most important technical tools of  Six Sigma needs to be mastered as it progress through the DMAIC methodology. While these tools are considered technical in nature, most of them are relatively easy to learn and apply. They are covered in the order they are used in the DMAIC methodology.

Tool #1 : The Critical to Quality (CTQ) Tree


The critical-to-quality tree is used during the design phase of DMAIC. It is used to brainstorm and validate the needs and requirements of the customer of the process, targeted for improvement.

The steps in creating a CTQ tree are as follows:
1. Identify the customer of the process targeted for improvement.
2. Identify the need of the customer.
3. Identify the first level of requirements of the need, that is, some characteristic of the need that determines whether the customer is happy with the need.
4. Drill down to more detailed level(s) of the requirement if necessary.

Tool #2 : The Process Map


During the Define phase, the project team creates the first of several process maps. A process map is a picture of the current steps in the process targeted for improvement.
A process map has five major categories of work from

1. The identification of the suppliers of the process,

2. The inputs the suppliers provide,

3. The name of the process,

4. The output of the process, and

5. The customers of the process.

Each of these steps is summarized as SIPOC to indicate the steps to the team that must be conducted to complete a process map.

Tool #3 : The Histogram


This tool is used during the Analysis stage of DMAIC. The project team reviews data collected during the Measure stage of DMAIC.
It is often suggested that the data be organized into graphs or charts, which makes it easier to understand, what the data is saying about the process.
Data is of two types – Discrete data (go/no go, fail or pass) and Continuous data ( time, hight etc.).

Tool #4 : The Pareto Chart


Histogram is useful for continuous data, same way when the data is discrete, most teams create a Pareto chart. Discrete data is counted data – go/no-go, off/on, yes/no, and defect/no defect type data.
When dealing with discrete data, the project team should create reason codes for why a defect occurs, and count and categorize the data into these reason codes and a pareto chart should be prepared.

Tool #5 : The Process Summary Worksheet


The goal of a Six Sigma project team is to improve effectiveness and efficiency. Efficiency is measured in terms of cost, time, labor, or value.
The process summary worksheet is a “roll-up” of the sub process map indicating which steps add value in the process and which steps don’t add value.

Tool #6 : The Cause-Effect Diagram


The most important tool to assist the project team in determining root causation is the cause-effect diagram. This tool captures all the ideas of the project team relative to what they feel are the root causes behind the current sigma performance and finally help in finding a root cause of the problem.

Tool #7 : The Scatter Diagram


Once ideas have been prioritized after use of the cause-effect diagram, the most important thing the project team does is to validate the remaining ideas with fact and data.
The scatter diagram takes an idea about root causation and tracks corresponding data, in the response the team is trying to improve. The team can validate an idea about root causation through one of the three methods. Using basic data collection, a designed experiment, or through the scatter diagram.

Tool #8 : The Affinity Diagram


An affinity diagram is used to help sort and categorize a large number of ideas into major themes or categories. It is especially useful when the team is ready to brainstorm solutions in the Improve stage of DMAIC.

The steps in creating an affinity diagram are:
1. Have each team member write one idea per Post-it note and post on a wall randomly.
2. As ideas are read off for clarification, sort ideas into similar groups.
3. Create a ‘header’ card for each general category of ideas below it.

Tool #9 : The Run Chart


We have discussed the histogram and Pareto chart. Think of both of these tools as similar to a camera where a snapshot of the process has been taken. But the run chart is similar to a camcorder, recording some process element over time.

Tool #10 : The Control Chart


Similar to a run chart, a control chart uses the data from a run chart to determine the upper and lower control limits. Control limits are the expected limits of variation above and below the average of the data. These limits are mathematically calculated and indicated by dotted lines.

Concluding, we saw 10 major technical tools that project team members use during the time they are on a Six Sigma team. These are not the only tools a Six Sigma team may use. However, the tools covered here are those that are most common for every team member to be aware of and knowledgeable about.

CHAPTER – 6(x)

Six Sigma Levels

Below is a detailed and structured explanation of each Six Sigma Belt, clearly describing roles, responsibilities, skills, training depth, and career relevance.


Six Sigma Belts (Levels)
Six Sigma follows a belt system similar to martial arts, where each belt represents a level of expertise, responsibility, and leadership in process improvement and quality management.


1. White Belt – Basic Awareness
Role :
– Introductory level participant
– Understands Six Sigma concepts at a high level
– Key Responsibilities
– Supports Six Sigma projects passively
– Understands terminology and basic principles
– Follows improved processes designed by others
– Skills & Knowledge


Basic understanding of :
* What Six Sigma is
* Defects, variation, and quality
* DMAIC overview
* Training Level
* Short training (few hours to 1–2 days)


Who Should Take It :
* New employees
* Non-technical staff
* Management wanting basic awareness
* Career Value
* Awareness only


2. Yellow Belt – Team Member
Role :
– Active project team member
– Supports Green Belt or Black Belt projects


Key Responsibilities :
* Collect data
* Participate in problem-solving
* Assist in root-cause analysis
* Help implement solutions


Skills & Knowledge :
* Basic DMAIC understanding
* Process mapping
* Simple data analysis
* Cause-and-effect diagrams


Training Level :
2–5 days of training


Who Should Take It ,:
* Operational staff
* Supervisors
* Analysts


Career Value :
– Improves operational effectiveness
– Recognized as a quality contributor


3. Green Belt – Process Improvement Leader Role :
– Leads small to medium Six Sigma projects
– Works part-time on improvement initiatives


Key Responsibilities :
– Lead DMAIC projects
– Identify inefficiencies and defects
– Analyze data using statistical tools
– Implement and sustain improvements


Skills & Knowledge :
– Advanced DMAIC
– Statistical analysis (basic)
– Hypothesis testing
– Process capability analysis
– Risk management


Training Level :
2–4 weeks (spread over time)


Who Should Take It :
– Engineers
– Managers
– Quality professionals
– IT & healthcare professionals


Career Value :
Strong professional recognition


Salary and role growth :
Widely accepted globally


4. Black Belt – Expert & Project Leader
Role :
* Full-time Six Sigma expert
* Leads complex, high-impact projects


Key Responsibilities :
– Manage multiple Green Belt projects
– Solve complex business problems
– Drive cost reduction and quality strategy
– Coach Yellow & Green Belts


Skills & Knowledge :
– Advanced statistics
– Design of Experiments (DOE)
– Regression analysis
– Change management
– Leadership & mentoring


Training Level :
4–6 months intensive training


Who Should Take It :
– Senior managers
– Quality heads
– Continuous improvement leaders


Career Value :
– High-paying roles
– Strategic leadership positions
– Cross-industry demand


5. Master Black Belt – Trainer & Strategist
Role :
– Highest Six Sigma authority
– Organizational strategist and mentor


Key Responsibilities :
– Define Six Sigma strategy
– Train Black & Green Belts
– Guide executive leadership
– Ensure long-term sustainability


Skills & Knowledge :
– Expert-level statistics
– Organizational change leadership
– Advanced coaching skills
– Strategic planning


Training Level :
1+ year (experience-based)


Who Should Take It :
* Senior executives
* Quality directors
* Consultants


Career Value :
* Top-level authority
* Global consulting roles
* Organizational transformation leader

Quick Comparison Table :-


Belt.           Role.                 Focus
White.       Awareness.      Understanding
Yellow.      Team member. Support
Green.      Project leader.  Improvement
Black.       Expert leader. Strategy & execution
Master Black Trainer & strategist Vision & governance

In a nutshell
Six Sigma belts represent a journey from awareness to mastery:
White – Learn
Yellow – Support
Green – Lead
Black – Transform
Master Black – Strategize

CHAPTER – 6(xi)

Six Sigma – Glossary & Terminology

Given below is a glossary of terms commonly used in the domain of Six Sigma:

“As Is” Process Map
It depicts a process as it is, currently. “As is” process maps are usually characterized by several input options, bottlenecks and multiple handoffs, inspections and rework loops.

“Should be” Process Map
A depiction of a new and improved version of a process, used in DMAIC and iDMAIC projects, where all non-value added steps are removed.

Affinity Chart
An affinity diagram is a tool for organizing large quantities of information from many people. It is often used with brainstorming and other creative thinking activities. The ideas are usually written on sticky notes, then categorized into groupings of similar ideas.

Analyze Phase (DMAIC)
Analyze phase identifies the root causes of the problem and confirms them with data.

Area SIXSIGMA Council
Leadership group (Area VP, AMD, AD, MBBs, and often GMs) guiding the implementation of quality and

SIXSIGMA within the organization; establishes, reviews, and supports the progress of SIXSIGMA DMAIC and iDMAIC projects.

Assumption Busting
A questioning process that helps identify and eliminate preconceptions or blind spots that hold people back from proposing or pursuing the best solution.

Attribute Data
It id any data that is not quantified on an infinitely divisible scale. Includes a count, proportion, or percentage of a characteristic (e.g. region, location, room type …) or category (e.g. gender: male/female …). This is in contrast to “continuous” data that is not limited to categories (e.g. cost in INR etc).

Balanced Scorecard
It categorizes ongoing measures into a few significant areas such as finance, process, people, and innovation. It is used as a presentation tool to update sponsors, senior management, and others on the progress of a business or process; also useful for process owners.

Baseline Measures
Data that reflects the performance level that exists at the beginning of an improvement project, before any solutions are initiated. It is the “Before” snapshot to be compared later with the “After” view.

Best Practice
A completed project (usually, but not always a Six Sigma project) that is particularly valuable for use in other properties based on meeting the following three conditions: Success, Transferability, and Speed of benefit realization.

Black Belt
An associate fully assigned to Six Sigma and trained in the DMAIC methodology, analytical tools, and team leadership skills. Black Belts are responsible for guiding DMAIC projects to completion. They lead DMAIC projects, assist with Quick Hits and provide coaching and expert support for iDMAIC transfer projects. Their role in Best Practice and Innovation transfer projects is to assist and coach the Import team on the DMAIC tools and methodology.

Both/And
It is a narrowing/selection process that seeks to identify solution ideas, which are similar (AND) as well as workable together even when not similar ideas (BOTH). This technique helps the team seek connections and combinations of ideas to develop better and more workable solutions.

Box Plot
It is a graphic display of groupings of data that compares the groupings to the others on one chart. An example of the tool would be looking at the variation in check-in time by different front desk associates.

Critical to Quality (CTQs)
Refers to what customers consider important in any given process. Collecting Voice of the customer data leads to the discovery of CTQs, which are translated into distinct requirements that can be measured.

Cause and Effect Diagram (Fishbone/Ishikawa)
Brainstorming tool used for proposing root-causes (the “bones of the fish”) for a specific effect (the head of the fish). This can be used in combination with the Affinity Diagram to determine the major categories. Also commonly used in combination with the “5 Whys” technique in order to help people understand the root cause.

Charter
It is a team document defining the context, specifics, and plans of an improvement project. It includes business case, problem and goal statements, constraints and assumptions, roles, preliminary plan, and scope.

Checksheet
Forms, tables, or worksheets that are set up ahead of time for people to use in data collection; it allows for collection of stratified data in a consistent way.

Common Cause Variation
It is normal, everyday influence on a process. This form of variation is usually harder to eliminate and requires changes to the process. Problems from common causes are referred to as “chronic pain”.

Complexity Matrix
A tool used to assist teams in determining the level of complexity of a project.

Continuous Data
Any quantity measured on a continuous scale that can be infinitely divided; primary types include time, dollars, size, weight, temperature, and speed.

Control Phase (DMAIC)
Control phase in DMAIC evaluates the solutions and the plan, standardizes the solutions, and outlines the steps for ongoing improvements including opportunities for using the solutions elsewhere.

Control Chart
It is a specialized graph that shows process performance over time, shows average upper and lower control limits and helps determine the influences of common (usual) causes or special (unusual) causes.

Correlation
It is a measure of the degree to which two variables are related. It is calculated to quantify the strength of the relationship between the two variables.

Cost of Poor Quality (COPQ)
It is a financial measure depicting the impact of problems due to internal and external failures in the process which includes labor and material costs for handoffs, rework, waste or scrap, inspection, and other non-value-adding activities.

Process capability (Cpk or Cp)
Process capability is the degree to which a process can meet customer requirements.

Criteria Matrix
It is a decision-making tool used when potential choices must be weighed against key factors such as cost, ease to implement, impact on customer, etc. It encourages use of facts, data, and clear business objectives in the decision-making.

Customer
It is an internal or external person/organization who receives the output product or service of the process.

Customer Requirements
They define the needs and expectations of the customer; translated into measurable terms and used in the process to ensure compliance with the customers’ needs.

Cycle Time
The time it takes to complete a process from start to finish. It includes actual work time and waiting time.
Define, Measure, Analyze, Design, and

Verify (DMADV)
It describes the application of SIXSIGMA tools for designing new products and processes.

DMAIC
Acronym for a Process Improvement/Management System that stands for Define, Measure, Analyze, Improve, and Control; lends structure to Process Improvement, Design or Redesign applications.

DMAIC 1 Training
It is DMAIC training for Master Black Belts, Black Belts and Green Belts. This course begins the SIXSIGMA problem-solving methodology (DMAIC), focusing on first steps of Define, Measure and a portion of Analyze.

DMAIC 2 Training
It is DMAIC training for Master Black Belts, Black Belts and Green Belts. This course is the conclusion of DMAIC method, finishing Analyze, Improve, and Control.

DMAIC 3 Training
It is DMAIC training for Master Black Belts. This course deepens the participant’s mastery of problem solving and statistical tools.

DMAIC Project
Projects that follow the DMAIC methodology led by a Black Belt; is generally goes for a duration of 3-4 months and can cross functional boundaries. A DMAIC project focuses on improving an existing process using the 5 steps Define, Measure, Analyze, Improve, and Control.

Defects Per Million Opportunities (DPMO)
Calculation used in SIXSIGMA initiatives to show how much “better” or “worse” a process is by indicating the amount of defects in a process per one million opportunities.

Dashboard or Process Scorecards
It is a graphical tool that provides a summary update on key indicators of process performance. It can include “alarms” to show if and when a key indicator is nearing a problem level.

Data Collection Plan
It is a structured approach to identifying the required data to be collected and the approach to collecting it. It includes: the measure, the measure type, data type, operational definition, and the sampling plan if new data is necessary.

Decision Tree
Used during the SIXSIGMA Council process to determine project selection weighting. It focuses properties on the area (either Revenue, cost Reduction or ASI, GSI) that needs the greatest attention to achieve overall property goals.

Defect
It is any instance or occurrence where the product or service fails to meet customer requirements.

Defect Opportunity
It is a potential defect on a unit of importance to the customer.

Defective
It is any unit with one or more defects.

Define Phase (DMAIC)
It is the first phase of DMAIC, where the project’s purpose and scope are defined. Background information on the process and customer is collected. The output of this phase includes a clear statement of the improvement (i.e. business case and Project Definition Form), a high-level map of the process (SIPOC), and a list of what is important to the customer.

Deployment Process Map
A map or graphical view of the steps in a process shows the sequence as it moves across departments, functions, or individuals.

Descriptive Statistics
It is a statistical profile of the collected data which includes measures of averages, variation, and other numbers which help team members assess “how bad” a problem is and to pinpoint where to focus further analysis and solutions.

Design for SIXSIGMA (DFSS)
Describes the application of SIXSIGMA tools to product development and Process Design efforts with the goal of “designing in” SIXSIGMA performance capability.

Discounted Cash Flows (DCF)
A method of financial analysis that allows comparisons of dissimilar projects on the basis of their overall value in today’s dollars. DCF converts future cash flows into equivalent current dollar equivalents.

Discrete Data (Attribute Data)
It is any data not quantified on an infinitely divisible scale. Includes a count, proportion, or percentage of a characteristic or category

Division SIXSIGMA Council
Leadership group (Presidents and direct reports, Division SIXSIGMA leader, AMDs, and often MBBs and GMs) guiding the implementation of quality and SIXSIGMA within the division; establishes, reviews, and supports the progress of SIXSIGMA DMAIC and iDMAIC projects. The Division Council is responsible for driving the SIXSIGMA initiative within that division and is accountable for project, process and business results.

Documentation
Documentation is a historical account of the activities and decisions made throughout a DMAIC project, Quick Hit, and iDMAIC project, which is used to facilitate sharing of best practices across an organization and as part of the project close-out process.

E-SIXSIGMA Project Tool (eTool)
Online database capturing project (DMAIC, Quick Hit, and iDMAIC) information including the proposed project goals, problem statement, projected cost and benefits, as well as tollgate documentation information from each phase of DMAIC and iDMAIC projects.

Effectiveness
It is a measure related to how well the process output meets the needs of the customer. It links primarily to customer satisfaction.

Efficiency
It is a measure related to the quantity of resources used in producing the output of a process.

External Failure
It is when defective units pass all the way through a process and are received by the customer.

Failure Modes and Effects Analysis (FMEA)
A useful technique for preventing future problems and reducing risks to a solution.
Used to identify and assess errors & defects which could result in a threat to quality, safety or reliability; it is useful in implementing improvements, redesign or design of processes. It is also a tool for process owners to build prevention and contingency steps into the project plan.

Fishbone Diagram
See Cause and Effect Diagram.

Five Whys
Five Whys are often used to generate a cause and effect. It is the technique of asking “Why” five times in order to dig into each potential cause. “Why” is asked until the root cause is revealed.

Force Field Analysis
It involves a list of the factors that support and factors that “hurt” an idea; “restraining” factors are listed on one side of the page and “driving forces” listed on the other. Frequency Plot or

Histogram
It is a graphical representation of the shape or distribution of the data by showing how often different values occur. It helps to answer the question: “Is the process capable of meeting my customer requirements”.

Functional Map
See Deployment Process Map.
Future Focused Cause and Effect
A traditional cause and effect diagram used for brainstorming future actions employed during the Improve phase of a DMAIC project.

Gantt Chart
It is a project planning and management tool that displays all the tasks or activities associated with a project or initiative as well as the relationships/dependencies between these tasks.

Global SIXSIGMA Council
Leadership group (Starwood’s Senior Operating Committee and Division Presidents) guiding the implementation of quality and SIXSIGMA within the organization, which establishes, reviews, and supports the progress of

SIXSIGMA DMAIC and iDMAIC projects. The Global SIXSIGMA Council is responsible for designing and driving SIXSIGMA throughout Starwood.

Goal Statement
Description of the intended target or desired results of Process Improvement or Design/Redesign activities; usually outlined during the proposal phase of the PDF, revised in the Define phase of a DMAIC project and supported with actual numbers and details once data is obtained.

Green Belt
Associates trained to the same level as Black Belts, but not on full-time assignment to SIXSIGMA. They may do DMAIC projects, lead smaller SIXSIGMA projects on a part-time basis, serve on larger projects as team members, and/or undertake implementation of Quick

Hits or Innovation Transfer projects.
Handoff
Any time in a process when one person (or job title) or group passes the item moving through the process to another person; a handoff has the potential to add defects, time, and cost to a process.

Hawthorne Effect
It is an increase in worker productivity that results from the psychological stimulus of being temporarily singled out and made to feel important.

Histogram or Frequency Plot
It is the complete description of the suspected causes of a process problem.

iDMAIC
iDMAIC stands for “Innovation DMAIC”. iDMAIC is a methodology designed to ensure consistent and rapid transfer of innovation throughout Starwood. Innovations can be DMAIC projects, Quick Hits, or other Starwood Innovations.

Internal Rate of Return(IRR)
It is a way to compare potential projects by calculating the financial value of a project against the investment required
Impact/Effort Matrix

A graphical representation of different projects plotted along two axes (Y = Impact, X = Effort). It is a project selection tool that allows comparison of dissimilar projects during the project selection portion of the SSC process.

Implementation Plan
A project management tool used in the “Improve” stages of DMAIC and iDMAIC, compiling tools such as Stakeholder Analysis, FMEA, Poka-yoke, SOPs and pilot results (if conducted) in a consolidated format.

Improve Phase (DMAIC)
The goal of Improve phase is to pilot and implement solutions that address root causes. This step helps to eliminate any errors/false starts when the team finally implements the solution.

Innovation Transfer
The successful transfer of a new idea, method or solution from one property to another may be a Quick Hit, Best Practice, or any other innovation.

Input
It is any product, service, or piece of information that comes into the process from a supplier.

Input Measures
Measures related to and describing the input into a process; can be predictors of process and output measures.

Ishikawa Diagram
A graph of how customer satisfaction is effected by a particular problem, change, or other variable. The graph is divided into three regions of customer reactions to the variable: “Dissatisfiers”, “Satisfiers” and “Delighters”.

Leading SIXSIGMA Training (LSS)
It is an introductory course for top-management to SIXSIGMA at Starwood, the SIXSIGMA problem-solving methodology (DMAIC), and the project selection process.

Leading Teams Training (LT)
It is a Team Leadership workshop designed to give participants the necessary skills to be able to lead teams in a challenging environment. The participants, Master Black Belts, Black Belts, and Green Belts are also introduced to the SIXSIGMA problem-solving methodology (DMAIC) and the project selection process.

Learning Cycle
An individual and team based learning exercise that helps individuals identify their own and others’ views on the team decision making process and the team’s overall performance.

Learning Map
It is an experiential, accelerated, and high-involvement learning activity to introduce SIXSIGMA concepts and the initiative at each Starwood property. It consists of a table-sized visual

SIXSIGMA: Innovation and Improvement” map and a set of cards that direct the participants through a discovery learning activity.

Master Black Belt (MBB)
It is a SIXSIGMA business champion and coach for Black Belts. The MBB is trained in the DMAIC process, analytical tools, and facilitation skills. The MBB is responsible for project selection for the Property and Area, ensuring that the DMAIC process is being implemented, and that all projects are on-track towards completion.

Measure (General Definition)
It is a numerical evaluation of based on observable data. A few examples of measures could be number of new reservations per day, the number of check-ins per week, the number of employees scheduled per shift.
Measure Phase (DMAIC phase)
The Measure phase focuses the improvement effort by gathering information on the current situation.

Moment of Truth
It is any event or point in a process when the internal/external customer comes in contact with a process. At each of these points the customer has an opportunity to form an opinion (positive, neutral, or negative) about the process or organization.

Multiple Regression
It is quantitative method relating multiple factors to the output of a process. The statistical study of the relationship of a combination of multiple variables (X1, X2 X3…Xn) to a single output Y.

Multivoting
It is a narrowing or prioritization tool. Faced with a list of ideas, problems, causes, etc., each member of a group is given a set number of “votes”. Those items or issues receiving the most votes get further attention/consideration.

Net Present Value (NPV)
It is the equivalent value in today’s dollars of a stream of future cash flows. NPV calculation seeks to quantify the concept that money received in the future is worth less than money received today.

Non-value-adding Activities
Any step in a process that do not add value to the customer or process. For example, rework, handoffs, inspection, delays, etc.

Operational Definition
A clear, precise definition of the factor being measured or the term being used; ensures a clear understanding of terminology and the ability to collect data or operate a process consistently.

to be continued……..

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