A HITCHIKERS GUIDE TO SIX SIGMA

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A HITCHIKERS GUIDE TO SIX SIGMA
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THE CONTINUOUS IMPROVEMENT ENTERPRISE
Utilizes tools from each methodology to maximize
business success
DMAIC- REDUCE PROCESS VARIATION AND DEFECTS
LEAN- ELIMINATE WASTE, INCREASE PROCESS
SPEED DFSS- PREVENTION OF PROCESS VARIATION AND
DEFECTS THROUGH ROBUST DESIGN
Six Sigma DMAIC
DFSS
Lean
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• SIX SIGMA- WHAT IT IS
• A methodology for continuous improvement of
  products and processes comprised of a set of
  statistical and other quality tools arranged in
  unique way
• A measure of the capability of our process
  relative to customer requirements
• A business strategy and operating Philosophy
• SIX SIGMA- WHAT IT IS NOT
• A standard such as ISO or Malcolm Baldrige
• A certification
• Another metric like percentage

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SIX SIGMA- WHERE DID IT COME FROMAND WHERE IS IT
APPLIED NOW?

• TQ 9-STEP MODEL IS BASIC FOUNDATION FOR SIX SIGMA
• 1980S MOTOROLA DEVELOPS STRATEGIES TO REDUCE
  PRODUCT DEFECTS- BECOMES EARLY RECIPIENT OF
  MALCOLM BALDRIGE.
• MOTOROLA HOLDS TRADEMARK FOR SIX SIGMA
  METHODOLOGY
• MID-80S SIX SIGMA RESEARCH INSTITUTE FOUNDED BY
  ABB, ALLIEDSIGNAL, KODAK, IBM, TI, MOTOROLA
• FROM MANUFACTURING (THEN) TO THE ENTIRE RANGE OF
  BUSINESS PROCESSES AND ENTITIES (NOW)

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WHAT IS A PROCESS?

• A GIVEN PROCEDURE OR METHOD
• A SEQUENCE OF DEFINED STEPS
• AN OPERATION CHANGING INPUTS INTO OUTPUTS

OPERATION
OUTPUT Y
INPUTS (X1,X2,X3,Xn)
Y f (X1, X2, X3, XN)
NEXTCOLLECT AND PLOT DATA TO VISUALIZE OUTPUT
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TWO MEANINGS OF SIGMA The mathematic term
sigma is used to designate the distribution or
spread about the mean (average) of any process or
procedure, i.e. the standard deviation. For a
process, the sigma capability is a metric that
indicates how well that process is performing
relative to customer requirements. The higher the
sigma capability, the better.
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The term sigma is used to designate the
distribution or spread about the mean (average)
of any process or procedure.
Standard Normal Distribution Has a µ 0, and s
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• Estimations and predictions about a population
  can be derived from
• The Sample Average
• The Sample Standard Deviation

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THE PROCESS SIGMA LEVEL REFERS TO THE NUMBER OF
STANDARD DEVIATIONS LYING BETWEEN THE MEAN AND
THE NEAREST CUSTOMER SPECIFICATION LIMIT
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VOP VS. VOC GOOD
USL
OUTPUT
UCL
LCL
LSL
TIME
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VOC VS. VOP NOT SO GOOD
OUTPUT
UCL
USL
LSL
LCL
TIME
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PROCESS CAPABILITY
(MAXIMUM ALLOWABLE RANGE OF
OUTPUT) (NORMAL VARIATION OF THE
PROCESS)
CP
CP (UPPER SPEC LIMIT (USL) LOWER SPEC LIMIT
(LSL)) 6 SIGMA
CP
THIS CALCULATION WORKS WHEN YOUR PROCESS MEAN IS
CENTERED BETWEEN YOUR CUSTOMER UPPER AND LOWER
SPECIFICATION LIMITS. OFF-CENTERED PROCESSES
COULD USE THE FOLLOWING FORMULA.
CPK MINIMUM ( X-LSL , USL-X )
3 s 3 s
3 CP, CPK APPROXIMATION OF SIGMA LEVEL
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RELATIVE PROCESS CAPABILITIES
SIGMA DPMO YIELD COPQ 6 3.4 99.9997 lt
10 Best in Class 5 233 99.976 10-15
4 6,210 99.4 15-20 Ind. Average
3 66,807 93 20-30 2 308,537 65 30-40
Uncompetitive 1 500,000 50 gt40 PROCESS DEFE
CTS/ ROLLED COST OF POOR CAPABILITY 106
OPPTS THROUGHPUT QUALITY
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PRACTICAL PROCESS CAPABILITIES

• 99.9997 GOOD (6 SIGMA)
• 7 LOST MAIL HOURLY
• UNSAFE WATER 1 MINUTE EVERY 7 MONTHS
• 1.7 INCORRECT SURGERIES/ WEEK
• 1 SHORT/LONG LANDING EVERY 5 YEARS
• 68 WRONG PRESCRIPTIONS/ YEAR
• 1 HOUR W/O ELECTRICITY EVERY 34 YEARS

• 99 GOOD (3.8 SIGMA)
• 20,000 LOST MAIL HOURLY
• UNSAFE DRINKING WATER 15 MINUTES/DAY
• 5000 INCORRECT SURGERIES/WEEK
• 2 LONG/SHORT LANDINGS MOST AIRPORTS/DAY
• 200,000 WRONG PRESCRIPTIONS/YEAR
• 7 HOURS/MONTH WITH NO ELECTRICITY

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DMAIC METHODOLOGY
D Define
DEFINE PURPOSE, SCOPE, VOC, PROCESS INFO
M Measure
MEASURE THE CURRENT SITUATION
A Analyze
ANALYZE TO IDENTIFY, CONFIRM ROOT CAUSES
I Improve
DEVELOP, TEST, EVALUATE, IMPLEMENT
C Control
MAINTAIN GAINS STANDARDIZE WORK, TRAINING AND
DOCUMENTATION,MONITORING
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D Define
M Measure
DEVELOP THE CHARTER
A Analyze
MAP THE PROCESS
I Improve
OBTAIN VOICE OF THE CUSTOMER (VOC)
C Control
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CHARTER COMPONENTS

• OBTAINS AGREEMENT BETWEEN MANAGEMENT AND TEAM
  ABOUT WHAT THE TEAM WILL ACCOMPLISH
• CLARIFIES EXPECTATIONS, MAINTAINS FOCUS AND
  ALIGNMENT WITH ORGANIZATIONAL PRIORITIES
• TRANSFERS PROJECT OWNERSHIP TO THE TEAM
• DEVELOP OVERVIEW OF PROJECT PURPOSE
• DEFINE WHY IT IS IMPORTANT TO WORK ON THIS
  PROJECT
• IDENTIFY THE FOCUS OR SCOPE OF PROJECT
• DETERMINE SPECIFIC DELIVERABLES
• DEFINE MEASURES OF SUCCESS
• DETERMINE RESOURCES

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SIPOC
SUPPLIERS
INPUTS
PROCESS
OUTPUTS
CUSTOMERS

• IDENTIFY START AND ENDPOINTS OF PROCESS
• STATE THE PURPOSE OF THE PROCESS
• IDENTIFY 5-7 TOP LEVEL PROCESS STEPS
• IDENTIFY PROCESS OUTPUTS
• IDENTIFY CUSTOMERS FOR EACH OUTPUT
• IDENTIFY KEY PROCESS INPUTS
• IDENTIFY KEY SUPPLIERS

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D Define
COLLECT BASELINE PROCESS DEFECT DATA AND THEIR
POSSIBLE CAUSES
M Measure
PLOT DEFECT DATA OVER TIME AND ANALYZE FOR
SPECIAL CAUSES
A Analyze
CREATE FREQUENCY PLOTS, PARETO
I Improve
CALCULATE PROCESS SIGMA
C Control
CREATE DETAILED PROCESS MAPS
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PARETO ANALYSIS

• CHOOSE ISSUES TO BE MONITORED, COMPARED, RANKED
• CHOOSE UNIT OF MEASUREMENT, TIME PERIOD
• COLLECT DATA, COMPARE CATEGORY FREQUENCIES
• GRAPH AND INTERPRET

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TIME SERIES RUN CHART
CREATE GRAPH, GATHER AND PLOT DATA, IDENTIFY
ARITHMATIC MEAN, EVALUATE FOR TRENDS
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D Define
DEVELOP A FOCUSED PROBLEM STATEMENT
M Measure
EXPLORE, ORGANIZE POTENTIAL CAUSES
A Analyze
I Improve
COLLECT DATA
C Control
STATISTICALLY QUANTIFY CAUSE AND EFFECT
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CAUSE AND EFFECT DIAGRAM
Effect

• The horizontal line points to an effect
• The main branches represent main categories of
  potential cause
• Tertiary causes can be listed off the category
  branches

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DOTPLOT

• A SIMPLE, EFFECTIVE WAY TO VIEW SMALL SAMPLES
• SHOWS LOCATION AND SPREAD OF DATA, OUTLIERS

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D Define
CREATE/SELECT POSSIBLE SOLUTIONS FOR ROOT CAUSES
M Measure
A Analyze
DEVELOP/PILOT/IMPLEMENT SOLUTION PLANS
I Improve
C Control
MEASURE RESULTS/ EVALUATE BENEFITS
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COMPONENTS OF A PROCESS FMEA
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FMEA APPLICATIONS

• Design DFMEA Focuses on Product Function. We
  conduct design FMEA early in the design phase to
  analyze product failure modes before they are
  transitioning to production.
• System FMEA Focus on components and subsystems.
  This is carried out on a product or service
  product at the early concept/design level.
• Strategic FMEA Focus on understanding and
  quantifying market risks, commercial risks and
  technical risks. A key consideration in making
  portfolio decisions.
• Equipment FMEA Used to understand equipment
  related failures.
• Process PFMEA A critical part of the quality
  planning phase to analyze operations and
  transactional processes that may escape to the
  customer.

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D Define
DEVELOP AND DOCUMENT STANDARD PRACTICES
M Measure
TRAIN TEAMS, MONITOR PERFORMANCE
A Analyze
I Improve
CREATE PROCESS FOR UPDATING PROCEDURES
C Control
SUMMARIZE AND COMMUNICATE LEARNINGS, RECOMMEND
FUTURE PLANS
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SAMPLE SPC CHART
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THE CONTINUOUS IMPROVEMENT ENTERPRISE
Utilizes tools from each methodology to maximize
business success
DMAIC- REDUCE PROCESS VARIATION AND DEFECTS
LEAN- ELIMINATE WASTE, INCREASE PROCESS
SPEED DFSS- PREVENTION OF PROCESS VARIATION AND
DEFECTS THROUGH ROBUST DESIGN
Six Sigma DMAIC
DFSS
Lean
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DESIGN FOR SIX SIGMA (DFSS)

• DFSS TOOLS AND TECHNIQUES APPLIED EARLY IN
  PRODUCT DESIGN REDUCES LIFECYCLE COPQ

TYPICAL ORG
PRODUCT LAUNCH
EFFORT, DESIGN CHANGES
DFSS ORG.
PRODUCT TIMELINE
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DFSS HELPS TO UNDERSTAND EXPLOIT RELATIONSHIPS
BETWEEN CONTROL VARIABLES AND PRODUCT
REQUIREMENTS
RESPONSE
Y F (X)
MORE ROBUST
LESS ROBUST
-

- CONTROL FACTOR(S) X1,X2,X3
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LEAN SIX SIGMA

• LEAN IS A SET OF PRINCIPLES TO ACCELERATE PROCESS
  SPEED BY ANALYZING PROCESS FLOW AND DELAYS, WITH
  A FOCUS ON CUSTOMER VALUE ADDED ACTIVITIES
• SIX SIGMA IS A MEHODOLOGY TO MINIMIZE DEFECTS AND
  PROCESS VARIATION AND REQUIRES DATA DRIVEN
  DECISIONS
• LEAN SIX SIGMA IS THE APPLICATION OF LEAN
  TECHNIQUES TO INCREASE ORGANIZATIONAL SPEED
  COMBINED WITH THE TOOLS AND CULTURE OF SIX SIGMA
  TO IMPROVE EFFICIENCIES AND FOCUS ON CUSTOMER
  ISSUES
• FOCUS ON CAUSES OF CUSTOMER CTQ ISSUES AND THOSE
  THAT CREATE THE LONGEST LEAD TIME DELAYS
• GREATEST OPPORTUNITY FOR IMPROVEMENTS COST,
  QUALITY, CAPITAL AND LEAD TIME

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LEAN FUNDAMENTAL THINKING

• PROVIDE VALUE TO THE CUSTOMER THROUGHOUT THE
  VALUE CHAIN, WITH ZERO WASTE
• DESIGN
• BUILD
• SERVICE
• FOCUS ON EACH PRODUCT AND ITS VALUE STREAM
• DIFFERENTIATE VALUE-ADDED ACTIVITIES FROM WASTE
• OPTIMIZE BY ELIMINATING WASTE AND ENHANCING VALUE

• MAKE THE PRODUCT FLOW (CONTINUOUS MOVEMENT
  CYCLE TIME REDUCTION) THROUGH THE PROCESS WITH NO
  INVENTORY OR WAIT TIME
• SO THE CUSTOMER CAN PULL (CASCADING INSTRUCTIONS
  IN WHICH NOTHING IS DONE BY SUPPLIER UNTIL
  CUSTOMER SIGNALS NEED)

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SIX SIGMA TRAINING REQUIREMENTS
Trained in advanced statistical tools Six
Sigma Methodology. Training can last up to 6
months duration 240 hours of training.
LEAN MASTERS
LEAN EXPERTS
Receives 160 hours training in statistics and Six
Sigma methodology
Black Belts
Receives 40 hours of training in basic Statistics
and Six Sigma methodology.
Green Belts
Varying professionals who are subject matter
experts. May or may not be Six Sigma trained
Team Members
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A HITCHIKERS GUIDE TO SIX SIGMATHANK YOU
DMAIC 6s
MBB
BB
DFSS
GB
LEAN
TEAM
Cause and Effect Diagram
Cause and Effect Diagram
People
Machine
Method
People
Machine
Method
The Y
The Xs
The Xs
(Causes)
(Causes)
l
l
Material
Measurement
Environment
Material
Measurement
Environment