Six Sigma DMAIC Training (excerpts)

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Six Sigma DMAIC Training (excerpts)
Presenter Bruce Berger [phone]
BergerConsulting_at_aol.com
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Six Sigma Overview
Why do we need Six Sigma?
Six Sigma is a proven methodology that will help
us improve our work in order to consistently
ensure

• Our products and services meet (or exceed)
  customers needs
• Our Processes are cost-effective
• DBS employees are well-trained and motivated
• State and federal statutory requirements are met

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Six Sigma Overview
What is Six Sigma?

• A philosophy for systematically improving
  quality, and therefore efficiency.
• A standard of performance equal to 3.4 defects
  per million outputs (i.e. near perfection).
• Most operations are about 2.8 sigma (100,000
  defects / million).
• Very good operations are about 4 sigma (3,500
  defects / million).

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Six Sigma Overview
Six Sigma is all about
1) Providing Customer Satisfaction through the
total involvement of ALL employees
2)Or put another way
Making Line Graphs move in the direction you
want them to go.
Line Graphs Help Us Understand Our Performance
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We know were Successful when
Six Sigma Overview
Customer Satisfaction

• Our customers tell us that they are
  pleased with our services.

• Our Services are Delivered On-Time.

• Our costs for doing business are the lowest
  possible.

• Our Employees are efficient.

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Six Sigma Overview
Moving line graphs requires efforts in three (3)
areas
Strategic planning helps us focus on key
projects to reach our Vision.
Process Management helps us maintain good results
as we perform our Mission.
Process Improvement using the DMAIC process helps
us fix work problems and improve our Performance.
To be successful as an organization, we must
learn how to effectively apply ALL three (3)
areas.
Todays training will overview the DMAIC process.

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DMAIC Overview
Process Improvement utilizes a 5 step problem
solving DMAIC process
DMAIC 5 Steps
1) Define
2) Measure
3) Analyze
4) Improve
5) Control
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DMAIC Overview Step 1 Define
The objective of step 1 is to Demonstrate the
importance of improvement needs in measurable
terms.
Lets look more closely at the two important tools
used in Define.
Define
Measure
Analyze
Improve
Control
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Step 1 Define - Spreadsheet Tool

• MS Excel is used to construct unique spreadsheets
  to record data for analysis
• Spreadsheets segment information into four key
  sections
• Demographics (contain who, what, where or
  when--information about the process)
• Milestone Dates (key completion dates/times of
  steps in the process)
• Durations (Performance Results calculated from
  the milestone dates automatically)
• Outcomes (Performance results of the process)
• Data collection can be either manual or
  downloaded from existing systems
• Can be used for ongoing monitoring of process
  performance after the project is completed

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Step 1 Define - Line Graph Tool
Gap

• Used to display performance trends
• Relates performance to a target that is
  established by either customers or the business
• Displays the Gap between the observed performance
  and the target

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DMAIC Overview Step 2 Measure
The objective of step 2 is to Investigate the
features of the indicator, stratify the problem
and set a target for improvement.
Lets look more closely at two important tools
used in Step 2 Measure
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Step 2 Measure Histogram Tool

• MS Excel and QC Tools software used to construct
  graph
• Fits data into a frequency distribution
• Can show upper and lower specification limits and
  denote data that falls outside those limits (the
  area on which the story should focus)
• Used for data breakdowns by hours, minutes,
  dollars, etc.

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Step 2 Measure Pareto Tool

• MS Excel and QC Tools software used to construct
  graphs
• Tool used to rank data by groups from the group
  that contains the most data points to the group
  that contains the fewest data points.
• Look for a large bar or young mountain

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Team Operations and Group Dynamics
The following are a few dynamics that all teams
need to be successful

• P-A-L (Purpose Agenda Limit)
• Parking Lot
• Recognition
• 4 Stages of Team Growth
• Consensus and Brainstorming
• Rules of Conduct

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P-A-L
Why Are Effective Meetings Important?
Because organizations spend 7.15 of their
personnel budgets, 35 of middle management's
time, and 60 of top management's time in
meetings.
What Is An Effective Meeting?

• An effective meeting is a meeting
• which is necessary.
• which includes all individuals required to
  accomplish the intended PURPOSE?.
• which covers the AGENDA.
• where people know what is expected of them.

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P-A-L (Cont.)

• What Is An Effective Meeting? (Cont.)
• An effective meeting is a meeting
• where the real issues are on the table and being
  dealt with and where most hidden agendas are
  legitimized and surfaced for discussion.
• where decisions and commitments are made, plans
  are developed, problems are solved.
• where people leave knowing what was accomplished
  and what they are to do.
• which meets its intended PURPOSE.
• which respects people by starting and ending on
  time (LIMIT).

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P-A-L (Cont.)

• When Are Meetings Needed?
• Meetings are useful
• for group problem solving.
• for sharing information or advice.
• for building commitment to a common goal.
• for addressing problems or issues that involve a
  number of people.
• for planning.
• for defining accountability and responsibility.
• for group decision-making.

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P-A-L (Cont.)

• How Are They Created?
• Send a draft of the agenda. The person calling
  the meeting should send out information on the
  agenda so that the purpose, time frames and
  topics are clear before people come to the
  meeting.
• Start the meeting on time.
• Revise and agree on an agenda. Add agenda items
  suggested by others attending the meeting, as
  appropriate. Finalize and agree on the agenda.
• Agree on ground rules.

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P-A-L (Cont.)

• How Are They Created? (Cont.)
• Encourage active participation from all members.
• Choose a process facilitator. To ensure an
  effective meeting, someone needs to take
  responsibility for managing the process portion
  of the meeting.
• Focus the discussion. Clarify and summarize as
  necessary to facilitate mutual understanding of
  perspectives and ideas.
• Decide how to decide. Determine how decisions
  will be made in the meeting - by consensus, by
  multi-voting, by majority voting, or by the team
  leader.

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P-A-L (Cont.)

• How Are They Created? (Cont.)
• Address all items raised. Insure that all items
  raised are addressed by the end of the meeting
  and that the person who raised the item knows
  what the next step will be, specifically.
• Check with the person who raised the issue to
  ensure they know what needs to happen next to get
  the issue addressed and that the proposed plan
  meets their needs.

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Parking Lot

• Parking Lot is a strategy for recording and
  postponing items raised during a meeting. Create
  a side list of items to be addressed later.
  Before the meeting adjourns, review ALL "parked"
  items and decide
• whether this group will address the item or refer
  it elsewhere, and if the item will be addressed
  by the group, decide when and how it will be
  addressed - (e.g., agenda next meeting, assign).
• communicate decisions to the person who raised
  the item.

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Parking Lot (Cont.)

• Summarize results, agreements, and next steps.
  Acknowledge agreements. At the close of the
  meeting review the decisions and agreements and
  other accomplishments that happened in the
  meeting, and review the next steps. WRITE IT ALL
  DOWN! Acknowledging and celebrating what was
  accomplished at a successful meeting gives people
  a sense of progress, and rewards them for the
  time and effort the meeting required. It also
  encourages them to work to make the next meeting
  productive.
• End the meeting on time.

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Recognition
The purpose of recognition is to formally
acknowledge the accomplishments of teams or team
related activities.

• Two major forces help drive Quality Improvement.
  These are
• Personal satisfaction from participation in the
  process and the knowledge that you can make
  constructive changes in your work environment,
  which help meet the needs of the customer.
• External recognition, which honors those who
  contribute to quality improvement.

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Recognition (Cont.)
Recognition is meant to be a "Win-Win" situation,
but it is often difficult to implement in a way
that everyone perceives it as such. Teams should
recognize that successful long-term recognition
is most applicable on a local level. Peer
recognition and recognition by your local
management have a more direct, lasting impact.
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Team Growth

• When small groups of people come together for the
  first time or when other events occur, these
  groups are said to be in transition and will
  undergo some predictable phases of team change or
  growth. A corresponding change in individual
  comfort levels brings tension and a sense of
  uneasiness to the whole team.
• The net result is usually some form of undesired
  or dysfunctional team behaviors. An awareness of
  these stages of group development and their
  related behaviors is important, especially for
  people leading teams in transition. The
  transition can be triggered by numerous events,
  including
• A small group coming together for the first time
• Changing team leaders on an existing team
• Member turnover
• An unexpected surprise visitor sits in with the
  team

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Team Growth (Cont.)

• Stage I Form This is where the group comes
  together either for the first time or after being
  apart for long periods.
• Stage II Storm This phase is characterized by
  intra-team conflict as members become more
  familiar and more comfortable with the team
  environment. They take more risks, and often
  begin to become competitive with each other.

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Team Growth (Cont.)

• Stage III Norm This phase is typified by the
  development of team cohesion. After all the
  conflict of phase II, the members begin to
  recognize and accept the team norms, their roles
  and the pecking order established in stage II.
  The personal "quirks" of other members also
  become accepted, or at least better tolerated and
  torn relationships get patched back up.
• Stage IV Perform This is when the team really
  begins to operate smoothly like a well-oiled
  machine. Members now know one another well they
  freely depend on each other for support and can
  thus focus on solving the problem and objective
  decision-making instead of each other.

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Team Growth (Cont.)

• What Does This Mean To You?
• Because the Form, Storm and Norm stages of group
  development result in less than optimum output,
  teams often try and push through these phases
  before their chemistry is ready to move on in
  order to improve team productivity.
• This might seem like a good idea, but it is
  really dysfunctional.
• It is natural for people to go through
  predictable phases of growth depending on
  maturity, experience, and other factors. It is
  natural for teams to do so too. They must go
  through these predictable phases as they mature
  and gain experience with each other and the DMAIC
  Story.

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Team Growth (Cont.)

• What Does This Mean To You? (Cont.)
• The duration of each phase depends on individual
  and team maturity, task complexity, leadership,
  and the sponsor's support.
• While it is natural that teams go through these
  stages some teams can get stuck in different
  stages. Given that the stages are unavoidable, an
  idea to consider to help reduce the time needed
  for a "team in transition" to go through the
  stages and be fully productive, is to share
  expectations about the group and its preferences
  and direction.
• Specifically, the team can establish (as part of
  their rules of team conduct) for example, there
  will be no "surprises". This can help establish
  an atmosphere of trust earlier in the
  evolutionary process allowing for some
  interpersonal issues to be put aside so people
  can focus on team objectives.

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Team Growth (Cont.)
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Consensus and Brainstorming

• Consensus is a group decision-making process that
  takes each member's ideas and opinions into
  account and results in a decision that everyone
  in the group can support. It is an effective
  method for decision-making because it involves
  every member's participation. Consensus improves
  decision quality, equalizes power, causes
  examination of alternatives, increases commitment
  to implement the decision and promotes unity
  among the team members.
• Brainstorming is a method used by a group of
  people to produce a large number of creative
  ideas in a relatively short period of time.

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Consensus (Cont.)

• How To Reach Consensus
• The leader clearly lists the alternatives the
  group has to choose from and opens the topic for
  discussion.
• Each member of the group shares her/his ideas
  opinions and known facts about what each feels
  the group's decision should be.
• When the leader feels that the team is beginning
  to come to a common agreement, he/she will
  clarify the position and ask the team if there is
  a consensus. If everyone agrees that it is the
  best decision, or feels that it is a decision
  that they can support, they state their agreement
  and the leader confirms the decision. If a member
  has new information or clarification of previous
  information that may be helpful to the team, time
  is spent discussing the concern and the process
  continues until consensus is achieved.

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Consensus (Cont.)

• Key Guidelines For Decision Making By Consensus
• Avoid arguing based on opinion. Strive to focus
  on facts and objectivity. Don't change your mind
  to avoid conflict. Change it based on facts and
  objectivity. Look at differences among the group
  as positive ways to make change. Coach each other
  to be honest, open and data based as much as
  possible.
• The following is an exercise to practice the
  decision-making technique of consensus in a group
  setting. Pay special attention to member
  involvement, as this will drive your success.

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Brainstorming

• Brainstorming is an effective technique because
  of two main principles
• Delayed Judgment - People are able to produce
  more ideas when they delay evaluation of ideas
  until a later time.
• Extended Effort - More original and useful ideas
  are created when the group continues to generate
  ideas beyond the initial, more obvious responses
  by filling an agreed upon time limit or an agreed
  upon number of ideas. The emphasis in the
  Generation Phase of a brainstorming session is
  always on the "quantity" of ideas not the
  "quality." The quality will come later when
  ideas are clarified and evaluated.

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Brainstorming (Cont.)

• How To Brainstorm
• The leader selects the method of brainstorming
  that will be used and informs the team. It will
  usually be one of two popular types
• Structured or Round Robin
• Unstructured Open Forum or Green Lighting
• The leader clearly states the topic and purpose
  of the brainstorming session. Everyone agrees on
  the topic or issue. The topic is then written and
  placed in a prominent, visible position.
• A recorder is selected to record all ideas on a
  flipchart or viewgraph transparency for all to
  see. Always having the words visible to everyone
  at the same time avoids misunderstandings and
  helps to inspire other new ideas.

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Brainstorming (Cont.)

• How To Brainstorm (Cont.)
• The leader reviews the following "Rules for
  Brainstorming" with the group
• No discussion, comments or evaluation of any idea
  during the generation phase.
• All ideas will be recorded.
• Quantity not quality is important during the
  generation phase.
• State ideas briefly and clearly.
• Build on recorded ideas.
• Generation Phase- Begin the brainstorming session
  by posting ideas on the flip chart. Make sure all
  ideas remain visible to the team. Continue until
  the agreed upon time is used or the agreed upon
  number of ideas are generated.

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Brainstorming (Cont.)

• How To Brainstorm (Cont.)
• Clarification Phase- During the Clarification
  Phase of Brainstorming, the team goes over the
  list to make sure that everyone understands all
  of the items. Do not discuss ideas. Criticism and
  discussion will take place during the Evaluation
  Phase and in Multi-voting.
• Evaluation Phase- Finally, during the Evaluation
  Phase, the team reviews the list to eliminate
  duplications, irrelevancies and issues that are
  off limits or cannot possibly be addressed or
  acted upon by this team.

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Rules of Conduct

• Rules of Conduct
• One practical way to reinforce the principle of
  Respect People is to establish and follow Rules
  of Conduct during meetings. Your team can either
  adopt the Rules of Conduct, shown below, or
  modify them to best suit your team's needs.

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Rules of Conduct (Cont.)

• With the ground rules established, the team can
  begin the continuous improvement cycle, P-D-C-A,
  but meetings must be effectively managed to
  ensure progress and success.

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How to Construct Line Graph Outcome Indicators

• Draw and label each axis. Label the horizontal
  axis with the frequency of measurement (i.e.,
  hour, day, week, month, etc., or by occurrence).
  Label the vertical axis with the indicator to be
  displayed. Construct appropriate measurement
  scales on each axis.
• Title the line graph with full Indicator
  Description including Location and Time Period.

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Construct Line Graph Outcome Indicators (Cont.)

• Show indicator formula if the indicator results
  from a calculation.
• Draw a good arrow and target. The target is
  displayed as a dashed line.
• Fill in the source block and include source of
  the data, who collected the data and the time
  period that data was collected from the source.

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Data Collection Spreadsheet

• MS Excel is used to construct unique spreadsheets
  to record data for analysis
• Spreadsheets segment information into four key
  sections
• Demographics (contain who, what, where or
  when--information about the process)
• Milestone Dates (key completion dates/times of
  steps in the process)
• Durations (Performance Results calculated from
  the milestone dates automatically)
• Outcomes (Performance results of the process)
• Data collection can be either manual or
  downloaded from existing systems
• Can be used for ongoing monitoring of process
  performance after the project is completed

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The ParetoBackground
How the Pareto Diagram was Born

• 1897 . . . Italian Economist, Vilfredo Pareto,
  presented a formula showing that the distribution
  of income is uneven (i.e., the largest share of
  the world's income is held by small number of
  people).
• 1907 . . . U.S. Economist, M. C. Lorenz,
  expressed a similar theory in a diagram.
• Later . . . Quality Control expert, Dr. J. M.
  Juran, applied Lorenz's diagram method to
  classify problems of quality into "vital

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The ParetoBackground
What is a Pareto Diagram?

• The Pareto is a graphical tool used to rank
  datasets within a data group. It helps us
  distinguish between the significant few and the
  trivial many datasets. It is primarily used to
  identify the most serious or most frequently
  occurring dataset(s) and is based on the concept
  that 80 of the data group problems (or, at least
  a large percentage) result from 20 of the
  datasets. Pareto diagrams are to be constructed
  for only discrete (or countable or attribute)
  data.

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The ParetoConstruction

• Draw a box.
• Display the number of items in the upper left
  corner as shown below (n101).
• Title the PARETO by describing the data that is
  being stratified. (Hint answer the Question,
  What is n?(i.e What are the 101?)
• Label three (3) sides of the box as follows
• Left side Number of __________ Construct a
  measurement scale on the left side starting with
  zero at the bottom and the n (e.g., 101) value
  at the top. Add additional appropriate scale
  values on the left side.
• Bottom side Label with the name of the What,
  Where, When or Who data group to be displayed
  (e.g., County). Draw each bar at the appropriate
  height descending from the left starting with the
  biggest bar. Label each bar and display bar
  height values above each bar.
• Right side Label this side Cumulative
  Percentage and display measurement grids at 0,
  25, 50, 75 and 100.
• Construct a Cumulative Percentage line Line
  starts in lower left corner at zero and
  connects labeled data points plotted at or
  directly above the upper right corner of each bar
  and at a height equal to the cumulative
  percentage, calculated as follows (bar
  heights of all bars to left data point) (the
  total n) 100 (e.g., (7620) (101) 100
  96).
• Add a source box.

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The Pareto Example