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SIX SIGMA YELLOW
BELT TRAINING
2
Content
 Origin & meaning of Six Sigma
 Need of Six Sigma
 DMAIC Methodology
 Some vital tools used during Six Sigma
 Overview of:
 Green Belt project
 Lean Six Sigma  
 Quality Management System
 TQM
Objectives of the training
Understand the need for Six Sigma
Explain the Six Sigma DMAIC process
Clarify the roles of the Sponsor and the
Project Leader
Understand the key differences between
traditional problem solving methods and the
Six Sigma approach
4
“Often, problems are knots with
many strands, and looking at those
strands can make a problem seem
different.”
5
Quality is a state in which value entitlement is realized for the customer and
provider in every aspect of the business relationship.
Business Quality is highest when the costs are at the absolute lowest for both
the producer & consumer.
Six Sigma provides maximum value to companies in the forms of increased
profits and maximum value to consumers with high-quality products and services
at the lowest possible cost.
Defect is any process output that does not meet customer specifications, or that
could lead to creating an output that does not meet customer specifications.
Cost of Poor Quality (COPQ) is the cost that would disappear if systems,
processes, and products were perfect.
Before We Start…
6
Process & Process Capability
• Process is a unique combination of tools, materials, methods, and people
engaged in producing a measurable output; for example a manufacturing
line for machine parts. All processes have inherent stastical variability which
can be evaluated by statistical methods.
• The Process Capability is a measurable property of a process to the
specification, expressed as a process capability index (e.g., Cpk or Cpm) or as
a process performance index (e.g., Ppk or Ppm). The output of this
measurement is usually illustrated by a histogram and calculations that
predict how many parts will be produced out of specification (OOS).
• Process capability is also defined as the capability of a process to meet its
purpose as managed by an organization's management and process
definition structures ISO 15504.
• Two parts of process capability are: 1) Measure the variability of the output of a
process, and 2) Compare that variability with a proposed specification or product
tolerance.
Six Sigma is a Business PhilosophySix Sigma is a Business Philosophy
Six Sigma
• Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects in
any process – from manufacturing to transactional and from product to service.
• To achieve Six Sigma, a process must not produce more than 3.4 defects per million
opportunities (DPMO).
• A Six Sigma opportunity is then the total quantity of chances for a defect. Customer focused
business improvement process.
• Defect reduction in a process or product.
• Common measurement scale called the Sigma capability or Z.
• Six Sigma capability corresponds to an efficiency of 99.9996%.
• Six Sigma seeks to improve the quality of process outputs by identifying and removing the
causes of defects (errors) and minimizing variability in manufacturing and business
processes.
• It uses a set of quality management methods, including statistical methods, and creates a
special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.)
who are experts in these methods.
8
Six Sigma Table
Sigma level DPMO Percent defective Percentage yield Cpk
1 691,462 69% 31% 0.33
2 308,538 31% 69% 0.67
3 66,807 6.7% 93.3% 1.00
4 6,210 0.62% 99.38% 1.33
5 233 0.023% 99.977% 1.67
6 3.4 0.00034% 99.99966% 2.00
 Six Sigma was developed by Bill Smith, QM at Motorola
 It’s implementation began at Motorola in 1987
 It allowed Motorola to win the first Baldrige Award in 1988
 Several major companies in the world have adopted Six Sigma
since then .…and applied to Manufacturing processes to improve
product quality
Texas Instruments, Asea Brown Boveri, AlliedSignal, General Electric, Bombardier, Nokia
Mobile Phones, Lockheed Martin, Sony, Polaroid, Dupont, American Express, Ford Motor,
…….
 GE applied the Six Sigma methodology to improve all business
processes and it became a way of running the business.
Six Sigma is a Competitive ToolSix Sigma is a Competitive Tool
History
10
What is Sigma
 Sigma (upper case Σ, lower case )σ is the eighteenth letter of the
Greek alphabet.
 In the system of Greek numerals it has a value of 200.
 Sigma is used to show standard variation.
 In probability theory and statistics, the standard deviation of a statistical
population, a data set, or a probability distribution is the square root of its
variance.
 It shows how much variation there is from the "average" (mean).
 A low standard deviation indicates that the data points tend to be very
close to the mean, whereas high standard deviation indicates that the
data are spread out over a large range of values.
The Standard Deviation
µ
1σ
T USL
Upper Specification Limit (USL)
Target Specification (T)
Lower Specification Limit (LSL)
Mean of the distribution (µ)
Standard Deviation of the distribution (σ)
3σ
1 Sigma - 68%
2 Sigma - 95%
3 Sigma - 99.73 %
Σ (X – X)2
n-1
σ =
Target
Customer
Specification
Target Customer
Specification
1σ
2σ
3σ
A 3σ process because 3 standard deviations
fit between target and spec
3σ
0.27% Defects up-to 6.6 %
Before
What Is Six Sigma
1σ
2σ
3σ
4σ
5σ
6σ
After
6σ !
No Defects!
Reducing Variability Is The Key To Six Sigma
13
Six Sigma -Tools
• 5 Whys
• Analysis of variance
• ANOVA Gauge R&R
• Axiomatic design
• Business Process Mapping
• Catapult exercise on variability
• Cause & effects diagram (also known as fishbone or Ishikawa diagram)
• Chi-square test of independence and fits
• Control chart
• Correlation
• Cost-benefit analysis
• CTQ tree
• Quantitative marketing research through use of Enterprise Feedback Management (EFM) systems
• Design of experiments
• Failure mode and effects analysis (FMEA)
• General linear model
• Histograms
• Homoscedasticity
• Quality Function Deployment (QFD)
• Pareto chart
• Pick chart
• Process capability
• Regression analysis
• Root cause analysis
• Run charts
• SIPOC analysis (Suppliers, Inputs, Process, Outputs, Customers)
• Stratification
• Taguchi methods
• Taguchi Loss Function
• TRIZ
The Focus of Six Sigma
• Dependent
• Output
• Effect
• Symptom
• Monitor
X1 . . . XN
• Independent
• Input-Process
• Cause
• Problem
• Control
f (X)f (X)YY
Would you control target or the shooter to get the Gold Medal?
How are we viewed by our customers?
• Reactionary, not preventative
• Adequately responsive to customer
needs
• Problems not permanently solved
• Hard perennial problems not solved.
• Inconsistent
• Flawed Startups
Customers look for our competitors
The Need for Six SigmaThe Need for Six Sigma
How do we want to be viewed by our
customers?
• Proactive
• Quick, agile
• Having robust products
• System experts
• Flawless during startups
• Continuously improving through
an Enterprise-wide problem
prevention/problem solving culture
Our Customers’ Best Supplier
The Need for Six SigmaThe Need for Six Sigma
17
Six Sigma - DMAIC Vs DMADV
DMAIC
 Define the project goals and
customer (internal and external)
deliverables
 Measure the process to determine
current performance
 Analyze and determine the root
cause(s) of the defects
 Improve the process by eliminating
defects
 Control future process performance
When To Use DMAIC
 The DMAIC methodology should be
used when a product or process is in
existence at your company but is not
meeting customer specification or is
not performing adequately.
DMADV
• Define the project goals and customer
(internal and external) deliverables
• Measure and determine customer
needs and specifications
• Analyze the process options to meet
the customer needs
• Design (detailed) the process to meet
the customer needs
• Verify the design performance and
ability to meet customer needs
When To Use DMADV
• A product or process is not in
existence at your company and one
needs to be developed
• The existing product or process exists
and has been optimized (using either
DMAIC or not) and still doesn't meet
the level of customer specification or
six sigma level
18
6σ DMAIC Process
Develop Charter and
Business Case
Map Existing Process
Collect Voice of the Customer
Specify CTQs / Requirements
Measure CTQs / Requirements
Determine Process Stability
Determine Process Capability
Calculate Baseline Sigma
Refine Problem Statement
Identify Root Causes
Quantify Root Causes
Verify Root Causes
Institutionalize Improvement
Control Deployment
Quantify Financial Results
Present Final Project Results and
Lessons Learned
Close Project
Select Solution (Including
Trade Studies, Cost/Benefit
Analysis)
Design Solution
Pilot Solution
Implement Solution
Define
Measure
Analyze
Improve
Control
DMAIC = Define, Measure, Analyze, Improve and Control
19
Six Sigma COPIS Model
Customers Suppliers
Outputs InputsProcess
Steps
The Voice of the Customer (VOC) is aggressively sought and rigorously
evaluated and used to determine needed outputs and hence the optimal
process configuration needed to yield those outputs and their necessary inputs
for which the best suppliers are identified and allied with.
From Concept to Market: the Voice of the Customer
How does Six Sigma Work?
6 Sigma
Methods
Manufacturing
EngineeringMarketing
Purchasing
Software
HR
Finance
... Can Be Applied To Every Business Function
Where to apply…..
Executive ChampionExecutive Champion
Responsible for providing resources to BB/GBs
Help in team selection
Track progress of project
Generally is supervisor of BB/GB. May help in selection of the project
SponsorSponsor
Call for need of project (Project identification)
Beneficiary of the project
Validate current status and status after completion of project
Allocates resources for the project
Ensure compliance to controls established as a result of the project
Project Leader (Black Belt / Green Belt)Project Leader (Black Belt / Green Belt)
Lead the project
Ask for resources required
Call meeting of stakeholders and seek help from EC when stakeholders are not responding
Ensure team involvement and sponsor’s buy in for solution
Publish weekly progress report & call for help when required
Roles and Responsibilities
Deployment ChampionDeployment Champion
Mentor and guide BBs/GBs
Provide technical help when BBs/GBs reach a roadblock
Publish Summary report of all projects
Raise alarm when things are not moving
MBBMBB
Train BB/GB
Assess the skills of BB/GB
Certification of GBs and BBs after completion of projects
Deployment of Global policies and procedures
CFO/FinanceCFO/Finance
Assess the saving potential at start of project
Validate savings against the targets achieved at completion of project
Roles and Responsibilities
Titles
Yellow Belt (YB):Yellow Belt (YB): Should understand the DMAIC process and use
the Six Sigma philosophy (Stakeholder involvement).
Green Belt (GB):Green Belt (GB): Should be able to use DMAIC process with basic
Six Sigma tools for project execution. Lead Six Sigma projects in
their functions.
Black Belt (BB):Black Belt (BB): Should be able to use advanced tools in projects
and teach Green Belt level techniques / tools. Identifies Six Sigma
projects and leads project teams. Mentors Green Belts. Process
experts in their functions.
Master Black Belt (MBB):Master Black Belt (MBB): Should be able to train Black Belts and
Green Belts. Mentors Black Belt projects. Drivers of cultural
change. Process experts in any function. Can develop new tools.
Example - Pizza Delivery Service
 Dabbawala and Co. a fast food company, owned by Mr. Dabbawala Pizza,
runs a pizza delivery service in and around Delhi.
Dabbawala and Co. which was doing very well over the last four years,
notices a drop in sales over the past five months. Customer complaints about
deliveries have been gradually on the rise.
 Several complaints from customers regarding irregular deliveries were
bothering Dabbawala.
 He had increased the number of delivery personnel to improve delivery
performance. But his customers were still leaving him.
 Pizza Hut, a multinational fast food chain, had set up shop in downtown
and was becoming more popular with the customers.
 Dabbawala neither had the financial muscle to match Pizza Hut’s
advertising blitz nor could afford the expensive packaging to lure his
customers back.
1. How does the customer
view Dabbawala’s Quality?
2. Who are the stakeholders
- Customer and Process
Improvement Team?
3. Which of his processes
should he try to improve in
order to improve Sales?
The Define Phase
Grow
revenues
Improve
Sales
So what’s
new
Get more
orders
Divisional directive
Plant objectives
Functional goals
Employees
A. IDENTIFY PROJECT CTQs:
A requirement of the customer is that the Pizza should be
delivered on time. Thus for the customer, DeliveryDelivery is Critical toCritical to
the Qualitythe Quality of Dabbawala’s service (CTQCTQ).
Voice of Customer (VOC)
Affinity Diagram
CTQ Tree.
The Define Phase - Step A
B. DEVELOP TEAM CHARTER:
The Business Case
Why should the project be done
Problem and Goal Statement
Description of the problem/opportunity
Roles and Responsibilities
The team, expectations and responsibilities
Stakeholder Analysis, TMAP, Gantt Chart
The Define Phase - Step B
C. DEFINE PROJECT SCOPE:
Identify the high level process to be improved
Define boundaries of project
SIPOC
Stratification Analysis
Contract Sheet
The Define Phase - Step C
The 7 Basic Tools - 1
STRATIFICATION ANALYSIS:
Stratification analysis (Is / Is Not Matrix) is helpful in defining the
conditions surrounding the problem - bounding or scoping
Is Is Not Distinctions
Geography
South, East and
Central Delhi
West and North
Delhi
West and North
Delhi are sub-
contracted
Output Delivery time
Mixups, Hygiene,
Temperature
Customer
Lower and Middle
Income
Higher Income
Premium service
for higher
income group
Time After Aug 09 Before Aug 09
Increased
employees in
Aug 09
The Define Phase - Summary
The Define phase is
owned by the Project
Sponsor. The three steps
of the Define phase are:
1. Identify Project CTQ
2. Develop Team Charter
3. Define Project Scope
VOC, Affinity Diagram,
CTQ Tree, Gantt Chart,
SIPOC, Stakeholder
Analysis, TMAP,
Stratification Analysis
Grow
revenues
Widen
Customer
Base
Reduce
variation in
delivery time
Improve
Delivery
process
Divisional directive
Plant objectives
Functional goals
Employees
A. IDENTIFY CTQ CHARACTERISTICS
Translate the CTQ to a measurable output of the delivery
process
Delivery time can be measured in many ways:
1. No. of times the delivery person delivered during the
shipping window (Discrete measure)
2. Time taken to travel from Dabbawala’s location to
customer location (Continuous measure)
3. Actual delivery time as seen by customer (Continuous
measure)
Delivery time is the Project Y.
The Measure Phase - Step A
B. DEFINE PERFORMANCE STANDARDS:
What are the customer’s requirements on Delivery time?
What is the definition of a defect?
1. Capture the Target (mean) delivery time - On time
2. Get the allowable variation on Y - +/- 30 minutes
VOC
Competitive Benchmarking
The Measure Phase - Step B
Target
Loss
Y
Loss α (Deviation)2
LATE DELIVERY
153045 15 30 450
LSL USL
Visualize customer requirementsVisualize customer requirements
Customer
does not
want earlier
than this
The
customer
tolerance
window is
30 minutes
on either
side
This is the
target
delivery time
EARLY DELIVERY (MINUTES)
Customer
does not
want later
than this
The Measure Phase - Step B
The Measure Phase - Step B
Preparation for data collection:
1. The Y or the Delivery Process Output
2. The Xs or the Inputs to the Delivery Process
Generate a list of Xs
Brainstorming
Process Map (PMAP)
Failure Modes Effects Analysis (FMEA)
Cause & Effect Diagram or Fishbone
Quality Function Deployment (QFD)
Prioritization Matrix
Check-sheet
The 7 Basic Tools - 2
CHECK-SHEET (DATA COLLECTION FORM)
Check-sheet is a data collection sheet used to record occurrences
of an event to look for patterns in the data in order to quantify the
problem and to facilitate understanding.
Categories Jan 6 Jan 7 Jan 8 Jan 9 Total
Misinterpreted
Label
llll llll llll llll llll l llll llll
llll
llll lll 47
Traffic llll lll llll llll llll ll 24
Parking lll llll ll ll llll l 18
Large Order llll lll llll ll 15
Locating home ll l l lll 7
Others l ll l 4
NO. OF LATE DELIVERIES
Prepare to collect data on the Xs also !Prepare to collect data on the Xs also !
The Measure Phase - Step C
C. EVALUATE MEASUREMENT SYSTEM:
CAUTION: Objects in mirror
are closer than they appear
Measurement system may
introduce variation into data
Actual process variation +
measurement variation =
data
Identify and remove
contribution to variation from
measurement system
Ensure reliable data
MSE, Gage R&R, Test –
Re-test, Kappa Method,
Intra-Class Correlation
The Measure Phase - Summary
A data collection plan is done in the Measure phase. It sets the
expectations for the project. This phase is owned by the Project
Leader. The three steps of the Measure phase are:
1. Identify CTQ characteristic
2. Define Performance Standards
3. Evaluate Measurement System
The list of tools available for the Measure phase are:
Brainstorming, PMAP, FMEA, MSE, GR&R, C&E
Diagram or Fishbone, Quality Function
Deployment or QFD, Prioritization Matrix,
Learn more about the PMAP, FMEA and MSE in the Six Sigma
Green Belt Training.
A. ESTABLISH PROCESS CAPABILITY
•What are the chances of your process creating defects?
•Baseline the current process:
•Measure variation in current process output
•Evaluate against Performance Standards
•Understand variation in your data with the help of:
Histogram
Box and Whisker plot
Dot plot
Standard Deviation
Variance
Sum of Squares
The Analyze Phase - Step A
The 7 Basic Tools - 3
HISTOGRAM
The Histogram is a graphical data summary tool which groups
observed data into pre-defined bins in order to analyze the data
values and distribution.
Target time
hrs
Delivery time
hrs
12:30 12:18
12:30 12:26
13:30 13:34
13:30 13:42
13:00 13:07
13:00 13:06
13:30 13:23
13:30 13:41
12:30 12:26
12:30 12:37
Target time
hrs
Delivery time
hrs
13:00 12:38
13:00 13:09
13:00 12:49
13:00 13:05
13:30 13:31
12:00 12:04
12:00 12:08
12:00 12:10
13:00 13:18
13:00 13:01
Target time
hrs
Delivery time
hrs
13:30 13:45
13:30 13:21
12:00 12:17
12:00 11:58
12:00 12:17
12:00 11:46
12:00 11:53
12:30 12:33
12:30 12:30
13:30 13:28
The 7 Basic Tools - 3
CREATING A HISTOGRAM:
Using the concept of the late and early deliveries, take the target
time as the reference, and find the number of minutes by which
each delivery is late or early.
1. Subtract Target time for each
data point from the Delivery time
2. Define 5 predetermined bins
(class intervals) of size equal to
10 minutes, from -25 to 25 on a
horizontal line
3. Place each data point vertically
in a bin according to its value
4. Draw a bar equal to the height
of stacked up points
-25 25-15 -5 5 15
The Analyze Phase - Step A
LATE DELIVERY
153045 15 30 450
Measure the process outputMeasure the process output
EARLY DELIVERY (MINUTES)
NUMBEROFDATAPOINTS
Dabbawala has an
average delivery time (µ)
2 minutes late and a
standard deviation (σ) of
10 minutes
µ
σ
The Analyze Phase - Step A
LATE DELIVERY
153045 15 30 450
Measure the Process OutputMeasure the Process Output
EARLY DELIVERY (MINUTES)
µ
σ
USLLSL
10 minutes
30 minutes
Z =
Process standard deviation
Customer tolerance
Z =
Z = 3
The Analyze Phase - Step A
Process
Capability
Defects per
Million
Opportunities
2 308,537
3 66,807
4 6,210
5 233
6 3.4
Higher Z implies lower defectsHigher Z implies lower defects
Inspect in
Quality
Manufacture in
Quality
Design in
Quality
It is cost
effective to
Sweet Fruit
Design for Processability
Bulk of Fruit
Process Characterization
and Optimization
Low Hanging Fruit
Seven Basic Tools
Ground Fruit
Logic and Intuition
3 σ Wall, Beat Up Suppliers
4 σ Wall, Improve Processes
5 σ Wall, Improve Designs
Mikel Harry, 1994
Getting the Competitive Edge
Do you know the Sigma capabilities of the following processes?
U.S. Manufacturing industry average
Japanese manufacturing industry average
Flight fatality in airline industry
Airline Baggage handling
Doctor prescription writing
Tax advice by Internal Revenue Service in U.S.
4.0
5.5
6.4
3.2
2.8
2.5
Sigma capability, Z
Industry Benchmarks
Six Sigma is a MetricSix Sigma is a Metric
Target
USLLSL
Center
Process
Reduce
Spread
The Analyze Phase - Step B
Process Off Target Excessive Variation in Process
Target
USLLSL
Target
USLLSL
Understand your ProblemUnderstand your Problem
B. DEFINE PERFORMANCE OBJECTIVES
Hypothesis testing
Quiz - Characterize
Six Sigma is a
A. Statistical Quality Tool
B. Business Philosophy
C. U.S. Management style
The goal of Six Sigma is to
A. Reduce defects to 3.4 per million
B. Improve products
C. Reduce variation
In the Pizza Delivery Service example,
what is the CTQ?
A. Lunch
B. Time
C. Delivery
If a process is Six Sigma (Z=6), it implies
A. Process is 99.99% good
B. Products are 99.99% defect free
C. There are only 3.4 defects in a million
opportunities
What is the Y?
A. Measurable Process Output
B. Voice of the Customer
C. Process Input
Who gives the USL and LSL?
A. Management
B. Customer
C. Derived from the process data
In the example, the Voice of the
Customer is characterized by
A. Delivery time
B. No. of deliveries made
C. Tolerance around the Target
In the example, the delivery service is
characterized by
A. Mean delivery time
B. Tolerance around the Target
C. Mean & variation of the delivery time
C. IDENTIFY SOURCES OF VARIATION
To find root causes or Xs
Fishbone or C&E Diagram (Ishikawa)
PMAP
FMEA
QFD
Fishbone (Ishikawa) is another of the 7 basic tools. It is also known
as the Cause & Effect Diagram. It is a hierarchy of causes that starts
with the primary cause and then steps several layers in detail to drive
towards possible root causes.
The Analyze Phase - Step C
Delivery
Time
MACHINE MOTHER NATURE MATERIALS
MAN METHODS
Poor
dispatching
Delivery person gets lost
Delivery person
does not show up
Poor handling of large orders
Run out of storage
space on vehiclesWeather
Too many
sacks
Develop a list of Xs that possibly affect YDevelop a list of Xs that possibly affect Y
The 7 Basic Tools - 4
Don’t know
routes
High turnover
Get wrong
information
Did not
understand
labels
No
teamwork
No training
Unreliable bikes
Delivery persons own junk
Cant locate
employees homes
Not on std routes
Did not
understand
labels
Too few
delivery
persons
Uneven distribution
of delivery loads
MEASUREMENT
No money for
repairs
Too many orders
per person
Too few delivery
persons
Large items
difficult to carry
in bus /bikes
Sacks
too small
Bus service
unreliable in
peak hours
Too much traffic
Parking space
problem
FISHBONE
A. SCREEN POTENTIAL CAUSES
To find the Vital Few Xs and separate it from the Trivial Many
Pareto
ANOVA (Analysis of Variance)
Regression
Chi-Square tests
Systematic data generation (if historical data is not sufficient)
Design of Experiments (DOE)
Statistical Analysis to identify Vital Few XsStatistical Analysis to identify Vital Few Xs
The Improve Phase - Step A
The 7 Basic Tools -5
PARETO
This is also called the Pareto Principle or the 80/20 rule and is used
to identify the Vital Few Xs.
Label
Traffic
Parking
Order Size
Location
Others
Cut-off level to be decided by team consensus based on
Process knowledge
Resource availability
The Improve Phase - Step B
8. DISCOVER CAUSAL RELATIONSHIPS
To find out effect of Xs on the Y
X1
Y
X2
Regression
Scatter Diagram
The 7 Basic Tools - 6
SCATTER DIAGRAM
A Scatter Diagram is a graph that
shows the relationship between
two numerical variables, X and Y
NO. OF PIZZAS / DELIVERY PERSONDELIVERYTIMESPAN
It is used to look for a cause
and effect relationship
between the two Numerical
variables.
In this example, the Scatter Diagram shows that the Delivery time is
less if the number of lunches per delivery person is less.
C. ESTABLISH OPERATING TOLERANCES
The Improve Phase - Step C
xL xT xU
USL
LSL
x
y
( )xfy =
NO. OF PIZZAS PER DELIVERY PERSON
DELIVERYTIME
A. VALIDATE MEASUREMENT SYSTEM ON X
The Control Phase - Step A
Measureσ
LSL US
L
Tolerance
Ensure noise from
measurement system
on X is small
compared to process
variation
σprocess
σmeasurement
MSE, G R&R
Test - Retest,
Kappa Method,
Intra Class Correlation
B. ESTABLISH NEW PROCESS CAPABILITY
The Control Phase - Step B
LATE DELIVERY
153045 15 30 450
EARLY DELIVERY (MINUTES)
USLLSL
Z = 4.5
C. IMPLEMENT PROCESS CONTROL
A good Control Plan should be put in place to ensure sustained
improvement. This may include:
1. Use of Control Charts to monitor Xs
2. Documentation of Control Plan
3. Update of process documents such as PFMEA
4. Error Proofing
5. Standardization
The Control Phase - Step C
RUN CHART
A Run Chart is a time series plot of data that allows a team to study
observed data for trends or patterns over a specific period of time. It
captures instances when the process is changing more than
statistically expected
The 7 Basic Tools - 7
0
10
20
30
No.lunches/person
The DMAIC Steps and Deliverables
A. Identify project CTQs Identify customers, customer CTQs and Business Case
B. Develop Team Charter Problem statement, Project Scope,Team, Milestones
C. Define Project Scope High Level Process Map connecting customers to process
1. Select CTQ characteristic Identify measurable characteristic of CTQ (Y)
2. Define performance standards Confirm specification limits (requirements) for Y
3. Evaluate Measurement System Ensure measurement system is capable
4. Establish process capability Baseline the current process
5. Define performance objectives Understand statistical objective - reduce variation or shift
means?
6. Identify sources of variation List significant causes (Xs) or factors
7. Screen potential causes Determine vital few Xs, which will be controlled
8.Discover variable relationship Find causal relationship and optimal solution
9. Establish operating tolerances Validate the relation and determine specs on Xs
10. Measurement System Evaluation on Xs Ensure X measurement is capable
11. Establish process capability Establish improved capability
12. Implement process control Document control plan
It’s a common sense approachIt’s a common sense approach
STEP DELIVERABLES
Attributes of a Six Sigma GBproject
1. Customer Focused: A Six Sigma GB project should address a
customer CTQ
2. Data Driven: In a Six Sigma GB project, decisions should be
made using data analysis and not on gut feelings or intuitions
3. Variation reduction: Six Sigma GB projects address the issue
of variation in process outputs and is aimed at reducing variation
DMAIC Summary
Knowing Customer CTQs
Data driven improvements
Focus on the (Xs) of the process
Application of statistical tools to business
problems
Understanding process capability and its impact
on quality
An environment that demands only the highest
performance standards.
Success will be defined when our customers notice !
Quiz
Characterize part consists of
A. Define and Measure
B. Define, Measure and Analyze
C. Define, Measure and part of Analyze
Optimize part consists of
A. Analyze, Improve and Control
B. Improve and Control
C. part of Analyze, Improve and Control
In Six Sigma, Xs are
A. Unknown variables
B. Excess variation
C. Process Inputs
Which of the following is used to list Xs?
A. DOE
B. Fishbone
C. Pareto
The Pareto principle is
A. Also called the 80/20 rule
B. Used to identify the Vital Few
C. Useful in the Analyze phase
Which of the following tools is used to
generate data?
A. Analysis of Variance (ANOVA)
B. DOE
C. Regression
Which of the following cannot identify the
Vital Few Xs?
A. Analysis of Variance (ANOVA)
B. DOE
C. Regression
A Six Sigma GB project has to
A. Finish in 3 months
B. Show dollar savings
C. Address the variation issue
Total Quality Management
• Total quality management(TQM) is a management philosophy
• Seeks to integrate all organizational functions (marketing,
finance, design, engineering, and production, customer service,
etc.) to focus on meeting customer needs and other
organizational objectives.
• TQM provides management with the ability to ensure quality
through more streamlined and effective process-improvement
channels.
• A great range of organizations have deployed TQM, including
small companies, large companies, and government
departments (e.g., NASA).
• TQM is no more relevant to any one type of organization than
any other; on the contrary, it is a philosophy appropriate to any
situation in which quality assurance is important.
Six Sigma vs. TQM
TQM Terminology Six Sigma Improvement
Terminology
•Identify the Project
•Establish the Cause
•Define
•Diagnose the Cause •Measure
•Analyze
•Remedy the Cause •Improve
•Hold the Gains •Control
•Replicate Results
•Nominate New Projects
•Replicate
Quality Management
• Quality management can be considered to have three main
components: quality control, quality assurance and quality
improvement.
• Quality management is focused not only on product quality, but
also the means to achieve it.
• Quality management therefore uses quality assurance and
control of processes as well as products to achieve more
consistent quality.
Quality Management System
• The International Organization for Standardization (ISO) created
the Quality Management System (QMS) standards in 1987.
• The last major revision was in the year 2008 and the series was
called ISO 9000:2000 series.
• are meant to certify the processes and the system of an
organization, not the product or service itself.
• ISO 9000 defines a QMS as:
“ Manag e m e nt syste m to dire ct and co ntro lan
o rg anizatio n with re g ard to q uality”
The Benefits of a QMS
• Encourages active and effective leadership
• Involves and empowers staff
• Staff will clearly understand their responsibilities
• Ensures consistency
• Focuses on root cause of problems
…Thank You

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Yellow belt training 68 s

  • 2. 2 Content  Origin & meaning of Six Sigma  Need of Six Sigma  DMAIC Methodology  Some vital tools used during Six Sigma  Overview of:  Green Belt project  Lean Six Sigma    Quality Management System  TQM
  • 3. Objectives of the training Understand the need for Six Sigma Explain the Six Sigma DMAIC process Clarify the roles of the Sponsor and the Project Leader Understand the key differences between traditional problem solving methods and the Six Sigma approach
  • 4. 4 “Often, problems are knots with many strands, and looking at those strands can make a problem seem different.”
  • 5. 5 Quality is a state in which value entitlement is realized for the customer and provider in every aspect of the business relationship. Business Quality is highest when the costs are at the absolute lowest for both the producer & consumer. Six Sigma provides maximum value to companies in the forms of increased profits and maximum value to consumers with high-quality products and services at the lowest possible cost. Defect is any process output that does not meet customer specifications, or that could lead to creating an output that does not meet customer specifications. Cost of Poor Quality (COPQ) is the cost that would disappear if systems, processes, and products were perfect. Before We Start…
  • 6. 6 Process & Process Capability • Process is a unique combination of tools, materials, methods, and people engaged in producing a measurable output; for example a manufacturing line for machine parts. All processes have inherent stastical variability which can be evaluated by statistical methods. • The Process Capability is a measurable property of a process to the specification, expressed as a process capability index (e.g., Cpk or Cpm) or as a process performance index (e.g., Ppk or Ppm). The output of this measurement is usually illustrated by a histogram and calculations that predict how many parts will be produced out of specification (OOS). • Process capability is also defined as the capability of a process to meet its purpose as managed by an organization's management and process definition structures ISO 15504. • Two parts of process capability are: 1) Measure the variability of the output of a process, and 2) Compare that variability with a proposed specification or product tolerance.
  • 7. Six Sigma is a Business PhilosophySix Sigma is a Business Philosophy Six Sigma • Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects in any process – from manufacturing to transactional and from product to service. • To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities (DPMO). • A Six Sigma opportunity is then the total quantity of chances for a defect. Customer focused business improvement process. • Defect reduction in a process or product. • Common measurement scale called the Sigma capability or Z. • Six Sigma capability corresponds to an efficiency of 99.9996%. • Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. • It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods.
  • 8. 8 Six Sigma Table Sigma level DPMO Percent defective Percentage yield Cpk 1 691,462 69% 31% 0.33 2 308,538 31% 69% 0.67 3 66,807 6.7% 93.3% 1.00 4 6,210 0.62% 99.38% 1.33 5 233 0.023% 99.977% 1.67 6 3.4 0.00034% 99.99966% 2.00
  • 9.  Six Sigma was developed by Bill Smith, QM at Motorola  It’s implementation began at Motorola in 1987  It allowed Motorola to win the first Baldrige Award in 1988  Several major companies in the world have adopted Six Sigma since then .…and applied to Manufacturing processes to improve product quality Texas Instruments, Asea Brown Boveri, AlliedSignal, General Electric, Bombardier, Nokia Mobile Phones, Lockheed Martin, Sony, Polaroid, Dupont, American Express, Ford Motor, …….  GE applied the Six Sigma methodology to improve all business processes and it became a way of running the business. Six Sigma is a Competitive ToolSix Sigma is a Competitive Tool History
  • 10. 10 What is Sigma  Sigma (upper case Σ, lower case )σ is the eighteenth letter of the Greek alphabet.  In the system of Greek numerals it has a value of 200.  Sigma is used to show standard variation.  In probability theory and statistics, the standard deviation of a statistical population, a data set, or a probability distribution is the square root of its variance.  It shows how much variation there is from the "average" (mean).  A low standard deviation indicates that the data points tend to be very close to the mean, whereas high standard deviation indicates that the data are spread out over a large range of values.
  • 11. The Standard Deviation µ 1σ T USL Upper Specification Limit (USL) Target Specification (T) Lower Specification Limit (LSL) Mean of the distribution (µ) Standard Deviation of the distribution (σ) 3σ 1 Sigma - 68% 2 Sigma - 95% 3 Sigma - 99.73 % Σ (X – X)2 n-1 σ =
  • 12. Target Customer Specification Target Customer Specification 1σ 2σ 3σ A 3σ process because 3 standard deviations fit between target and spec 3σ 0.27% Defects up-to 6.6 % Before What Is Six Sigma 1σ 2σ 3σ 4σ 5σ 6σ After 6σ ! No Defects! Reducing Variability Is The Key To Six Sigma
  • 13. 13 Six Sigma -Tools • 5 Whys • Analysis of variance • ANOVA Gauge R&R • Axiomatic design • Business Process Mapping • Catapult exercise on variability • Cause & effects diagram (also known as fishbone or Ishikawa diagram) • Chi-square test of independence and fits • Control chart • Correlation • Cost-benefit analysis • CTQ tree • Quantitative marketing research through use of Enterprise Feedback Management (EFM) systems • Design of experiments • Failure mode and effects analysis (FMEA) • General linear model • Histograms • Homoscedasticity • Quality Function Deployment (QFD) • Pareto chart • Pick chart • Process capability • Regression analysis • Root cause analysis • Run charts • SIPOC analysis (Suppliers, Inputs, Process, Outputs, Customers) • Stratification • Taguchi methods • Taguchi Loss Function • TRIZ
  • 14. The Focus of Six Sigma • Dependent • Output • Effect • Symptom • Monitor X1 . . . XN • Independent • Input-Process • Cause • Problem • Control f (X)f (X)YY Would you control target or the shooter to get the Gold Medal?
  • 15. How are we viewed by our customers? • Reactionary, not preventative • Adequately responsive to customer needs • Problems not permanently solved • Hard perennial problems not solved. • Inconsistent • Flawed Startups Customers look for our competitors The Need for Six SigmaThe Need for Six Sigma
  • 16. How do we want to be viewed by our customers? • Proactive • Quick, agile • Having robust products • System experts • Flawless during startups • Continuously improving through an Enterprise-wide problem prevention/problem solving culture Our Customers’ Best Supplier The Need for Six SigmaThe Need for Six Sigma
  • 17. 17 Six Sigma - DMAIC Vs DMADV DMAIC  Define the project goals and customer (internal and external) deliverables  Measure the process to determine current performance  Analyze and determine the root cause(s) of the defects  Improve the process by eliminating defects  Control future process performance When To Use DMAIC  The DMAIC methodology should be used when a product or process is in existence at your company but is not meeting customer specification or is not performing adequately. DMADV • Define the project goals and customer (internal and external) deliverables • Measure and determine customer needs and specifications • Analyze the process options to meet the customer needs • Design (detailed) the process to meet the customer needs • Verify the design performance and ability to meet customer needs When To Use DMADV • A product or process is not in existence at your company and one needs to be developed • The existing product or process exists and has been optimized (using either DMAIC or not) and still doesn't meet the level of customer specification or six sigma level
  • 18. 18 6σ DMAIC Process Develop Charter and Business Case Map Existing Process Collect Voice of the Customer Specify CTQs / Requirements Measure CTQs / Requirements Determine Process Stability Determine Process Capability Calculate Baseline Sigma Refine Problem Statement Identify Root Causes Quantify Root Causes Verify Root Causes Institutionalize Improvement Control Deployment Quantify Financial Results Present Final Project Results and Lessons Learned Close Project Select Solution (Including Trade Studies, Cost/Benefit Analysis) Design Solution Pilot Solution Implement Solution Define Measure Analyze Improve Control DMAIC = Define, Measure, Analyze, Improve and Control
  • 19. 19 Six Sigma COPIS Model Customers Suppliers Outputs InputsProcess Steps The Voice of the Customer (VOC) is aggressively sought and rigorously evaluated and used to determine needed outputs and hence the optimal process configuration needed to yield those outputs and their necessary inputs for which the best suppliers are identified and allied with. From Concept to Market: the Voice of the Customer How does Six Sigma Work?
  • 20. 6 Sigma Methods Manufacturing EngineeringMarketing Purchasing Software HR Finance ... Can Be Applied To Every Business Function Where to apply…..
  • 21. Executive ChampionExecutive Champion Responsible for providing resources to BB/GBs Help in team selection Track progress of project Generally is supervisor of BB/GB. May help in selection of the project SponsorSponsor Call for need of project (Project identification) Beneficiary of the project Validate current status and status after completion of project Allocates resources for the project Ensure compliance to controls established as a result of the project Project Leader (Black Belt / Green Belt)Project Leader (Black Belt / Green Belt) Lead the project Ask for resources required Call meeting of stakeholders and seek help from EC when stakeholders are not responding Ensure team involvement and sponsor’s buy in for solution Publish weekly progress report & call for help when required Roles and Responsibilities
  • 22. Deployment ChampionDeployment Champion Mentor and guide BBs/GBs Provide technical help when BBs/GBs reach a roadblock Publish Summary report of all projects Raise alarm when things are not moving MBBMBB Train BB/GB Assess the skills of BB/GB Certification of GBs and BBs after completion of projects Deployment of Global policies and procedures CFO/FinanceCFO/Finance Assess the saving potential at start of project Validate savings against the targets achieved at completion of project Roles and Responsibilities
  • 23. Titles Yellow Belt (YB):Yellow Belt (YB): Should understand the DMAIC process and use the Six Sigma philosophy (Stakeholder involvement). Green Belt (GB):Green Belt (GB): Should be able to use DMAIC process with basic Six Sigma tools for project execution. Lead Six Sigma projects in their functions. Black Belt (BB):Black Belt (BB): Should be able to use advanced tools in projects and teach Green Belt level techniques / tools. Identifies Six Sigma projects and leads project teams. Mentors Green Belts. Process experts in their functions. Master Black Belt (MBB):Master Black Belt (MBB): Should be able to train Black Belts and Green Belts. Mentors Black Belt projects. Drivers of cultural change. Process experts in any function. Can develop new tools.
  • 24. Example - Pizza Delivery Service  Dabbawala and Co. a fast food company, owned by Mr. Dabbawala Pizza, runs a pizza delivery service in and around Delhi. Dabbawala and Co. which was doing very well over the last four years, notices a drop in sales over the past five months. Customer complaints about deliveries have been gradually on the rise.  Several complaints from customers regarding irregular deliveries were bothering Dabbawala.  He had increased the number of delivery personnel to improve delivery performance. But his customers were still leaving him.  Pizza Hut, a multinational fast food chain, had set up shop in downtown and was becoming more popular with the customers.  Dabbawala neither had the financial muscle to match Pizza Hut’s advertising blitz nor could afford the expensive packaging to lure his customers back.
  • 25. 1. How does the customer view Dabbawala’s Quality? 2. Who are the stakeholders - Customer and Process Improvement Team? 3. Which of his processes should he try to improve in order to improve Sales? The Define Phase Grow revenues Improve Sales So what’s new Get more orders Divisional directive Plant objectives Functional goals Employees
  • 26. A. IDENTIFY PROJECT CTQs: A requirement of the customer is that the Pizza should be delivered on time. Thus for the customer, DeliveryDelivery is Critical toCritical to the Qualitythe Quality of Dabbawala’s service (CTQCTQ). Voice of Customer (VOC) Affinity Diagram CTQ Tree. The Define Phase - Step A
  • 27. B. DEVELOP TEAM CHARTER: The Business Case Why should the project be done Problem and Goal Statement Description of the problem/opportunity Roles and Responsibilities The team, expectations and responsibilities Stakeholder Analysis, TMAP, Gantt Chart The Define Phase - Step B
  • 28. C. DEFINE PROJECT SCOPE: Identify the high level process to be improved Define boundaries of project SIPOC Stratification Analysis Contract Sheet The Define Phase - Step C
  • 29. The 7 Basic Tools - 1 STRATIFICATION ANALYSIS: Stratification analysis (Is / Is Not Matrix) is helpful in defining the conditions surrounding the problem - bounding or scoping Is Is Not Distinctions Geography South, East and Central Delhi West and North Delhi West and North Delhi are sub- contracted Output Delivery time Mixups, Hygiene, Temperature Customer Lower and Middle Income Higher Income Premium service for higher income group Time After Aug 09 Before Aug 09 Increased employees in Aug 09
  • 30. The Define Phase - Summary The Define phase is owned by the Project Sponsor. The three steps of the Define phase are: 1. Identify Project CTQ 2. Develop Team Charter 3. Define Project Scope VOC, Affinity Diagram, CTQ Tree, Gantt Chart, SIPOC, Stakeholder Analysis, TMAP, Stratification Analysis Grow revenues Widen Customer Base Reduce variation in delivery time Improve Delivery process Divisional directive Plant objectives Functional goals Employees
  • 31. A. IDENTIFY CTQ CHARACTERISTICS Translate the CTQ to a measurable output of the delivery process Delivery time can be measured in many ways: 1. No. of times the delivery person delivered during the shipping window (Discrete measure) 2. Time taken to travel from Dabbawala’s location to customer location (Continuous measure) 3. Actual delivery time as seen by customer (Continuous measure) Delivery time is the Project Y. The Measure Phase - Step A
  • 32. B. DEFINE PERFORMANCE STANDARDS: What are the customer’s requirements on Delivery time? What is the definition of a defect? 1. Capture the Target (mean) delivery time - On time 2. Get the allowable variation on Y - +/- 30 minutes VOC Competitive Benchmarking The Measure Phase - Step B Target Loss Y Loss α (Deviation)2
  • 33. LATE DELIVERY 153045 15 30 450 LSL USL Visualize customer requirementsVisualize customer requirements Customer does not want earlier than this The customer tolerance window is 30 minutes on either side This is the target delivery time EARLY DELIVERY (MINUTES) Customer does not want later than this The Measure Phase - Step B
  • 34. The Measure Phase - Step B Preparation for data collection: 1. The Y or the Delivery Process Output 2. The Xs or the Inputs to the Delivery Process Generate a list of Xs Brainstorming Process Map (PMAP) Failure Modes Effects Analysis (FMEA) Cause & Effect Diagram or Fishbone Quality Function Deployment (QFD) Prioritization Matrix Check-sheet
  • 35. The 7 Basic Tools - 2 CHECK-SHEET (DATA COLLECTION FORM) Check-sheet is a data collection sheet used to record occurrences of an event to look for patterns in the data in order to quantify the problem and to facilitate understanding. Categories Jan 6 Jan 7 Jan 8 Jan 9 Total Misinterpreted Label llll llll llll llll llll l llll llll llll llll lll 47 Traffic llll lll llll llll llll ll 24 Parking lll llll ll ll llll l 18 Large Order llll lll llll ll 15 Locating home ll l l lll 7 Others l ll l 4 NO. OF LATE DELIVERIES Prepare to collect data on the Xs also !Prepare to collect data on the Xs also !
  • 36. The Measure Phase - Step C C. EVALUATE MEASUREMENT SYSTEM: CAUTION: Objects in mirror are closer than they appear Measurement system may introduce variation into data Actual process variation + measurement variation = data Identify and remove contribution to variation from measurement system Ensure reliable data MSE, Gage R&R, Test – Re-test, Kappa Method, Intra-Class Correlation
  • 37. The Measure Phase - Summary A data collection plan is done in the Measure phase. It sets the expectations for the project. This phase is owned by the Project Leader. The three steps of the Measure phase are: 1. Identify CTQ characteristic 2. Define Performance Standards 3. Evaluate Measurement System The list of tools available for the Measure phase are: Brainstorming, PMAP, FMEA, MSE, GR&R, C&E Diagram or Fishbone, Quality Function Deployment or QFD, Prioritization Matrix, Learn more about the PMAP, FMEA and MSE in the Six Sigma Green Belt Training.
  • 38. A. ESTABLISH PROCESS CAPABILITY •What are the chances of your process creating defects? •Baseline the current process: •Measure variation in current process output •Evaluate against Performance Standards •Understand variation in your data with the help of: Histogram Box and Whisker plot Dot plot Standard Deviation Variance Sum of Squares The Analyze Phase - Step A
  • 39. The 7 Basic Tools - 3 HISTOGRAM The Histogram is a graphical data summary tool which groups observed data into pre-defined bins in order to analyze the data values and distribution. Target time hrs Delivery time hrs 12:30 12:18 12:30 12:26 13:30 13:34 13:30 13:42 13:00 13:07 13:00 13:06 13:30 13:23 13:30 13:41 12:30 12:26 12:30 12:37 Target time hrs Delivery time hrs 13:00 12:38 13:00 13:09 13:00 12:49 13:00 13:05 13:30 13:31 12:00 12:04 12:00 12:08 12:00 12:10 13:00 13:18 13:00 13:01 Target time hrs Delivery time hrs 13:30 13:45 13:30 13:21 12:00 12:17 12:00 11:58 12:00 12:17 12:00 11:46 12:00 11:53 12:30 12:33 12:30 12:30 13:30 13:28
  • 40. The 7 Basic Tools - 3 CREATING A HISTOGRAM: Using the concept of the late and early deliveries, take the target time as the reference, and find the number of minutes by which each delivery is late or early. 1. Subtract Target time for each data point from the Delivery time 2. Define 5 predetermined bins (class intervals) of size equal to 10 minutes, from -25 to 25 on a horizontal line 3. Place each data point vertically in a bin according to its value 4. Draw a bar equal to the height of stacked up points -25 25-15 -5 5 15
  • 41. The Analyze Phase - Step A LATE DELIVERY 153045 15 30 450 Measure the process outputMeasure the process output EARLY DELIVERY (MINUTES) NUMBEROFDATAPOINTS Dabbawala has an average delivery time (µ) 2 minutes late and a standard deviation (σ) of 10 minutes µ σ
  • 42. The Analyze Phase - Step A LATE DELIVERY 153045 15 30 450 Measure the Process OutputMeasure the Process Output EARLY DELIVERY (MINUTES) µ σ USLLSL 10 minutes 30 minutes Z = Process standard deviation Customer tolerance Z = Z = 3
  • 43. The Analyze Phase - Step A Process Capability Defects per Million Opportunities 2 308,537 3 66,807 4 6,210 5 233 6 3.4 Higher Z implies lower defectsHigher Z implies lower defects Inspect in Quality Manufacture in Quality Design in Quality It is cost effective to
  • 44. Sweet Fruit Design for Processability Bulk of Fruit Process Characterization and Optimization Low Hanging Fruit Seven Basic Tools Ground Fruit Logic and Intuition 3 σ Wall, Beat Up Suppliers 4 σ Wall, Improve Processes 5 σ Wall, Improve Designs Mikel Harry, 1994 Getting the Competitive Edge
  • 45. Do you know the Sigma capabilities of the following processes? U.S. Manufacturing industry average Japanese manufacturing industry average Flight fatality in airline industry Airline Baggage handling Doctor prescription writing Tax advice by Internal Revenue Service in U.S. 4.0 5.5 6.4 3.2 2.8 2.5 Sigma capability, Z Industry Benchmarks Six Sigma is a MetricSix Sigma is a Metric
  • 46. Target USLLSL Center Process Reduce Spread The Analyze Phase - Step B Process Off Target Excessive Variation in Process Target USLLSL Target USLLSL Understand your ProblemUnderstand your Problem B. DEFINE PERFORMANCE OBJECTIVES Hypothesis testing
  • 47. Quiz - Characterize Six Sigma is a A. Statistical Quality Tool B. Business Philosophy C. U.S. Management style The goal of Six Sigma is to A. Reduce defects to 3.4 per million B. Improve products C. Reduce variation In the Pizza Delivery Service example, what is the CTQ? A. Lunch B. Time C. Delivery If a process is Six Sigma (Z=6), it implies A. Process is 99.99% good B. Products are 99.99% defect free C. There are only 3.4 defects in a million opportunities What is the Y? A. Measurable Process Output B. Voice of the Customer C. Process Input Who gives the USL and LSL? A. Management B. Customer C. Derived from the process data In the example, the Voice of the Customer is characterized by A. Delivery time B. No. of deliveries made C. Tolerance around the Target In the example, the delivery service is characterized by A. Mean delivery time B. Tolerance around the Target C. Mean & variation of the delivery time
  • 48. C. IDENTIFY SOURCES OF VARIATION To find root causes or Xs Fishbone or C&E Diagram (Ishikawa) PMAP FMEA QFD Fishbone (Ishikawa) is another of the 7 basic tools. It is also known as the Cause & Effect Diagram. It is a hierarchy of causes that starts with the primary cause and then steps several layers in detail to drive towards possible root causes. The Analyze Phase - Step C
  • 49. Delivery Time MACHINE MOTHER NATURE MATERIALS MAN METHODS Poor dispatching Delivery person gets lost Delivery person does not show up Poor handling of large orders Run out of storage space on vehiclesWeather Too many sacks Develop a list of Xs that possibly affect YDevelop a list of Xs that possibly affect Y The 7 Basic Tools - 4 Don’t know routes High turnover Get wrong information Did not understand labels No teamwork No training Unreliable bikes Delivery persons own junk Cant locate employees homes Not on std routes Did not understand labels Too few delivery persons Uneven distribution of delivery loads MEASUREMENT No money for repairs Too many orders per person Too few delivery persons Large items difficult to carry in bus /bikes Sacks too small Bus service unreliable in peak hours Too much traffic Parking space problem FISHBONE
  • 50. A. SCREEN POTENTIAL CAUSES To find the Vital Few Xs and separate it from the Trivial Many Pareto ANOVA (Analysis of Variance) Regression Chi-Square tests Systematic data generation (if historical data is not sufficient) Design of Experiments (DOE) Statistical Analysis to identify Vital Few XsStatistical Analysis to identify Vital Few Xs The Improve Phase - Step A
  • 51. The 7 Basic Tools -5 PARETO This is also called the Pareto Principle or the 80/20 rule and is used to identify the Vital Few Xs. Label Traffic Parking Order Size Location Others Cut-off level to be decided by team consensus based on Process knowledge Resource availability
  • 52. The Improve Phase - Step B 8. DISCOVER CAUSAL RELATIONSHIPS To find out effect of Xs on the Y X1 Y X2 Regression Scatter Diagram
  • 53. The 7 Basic Tools - 6 SCATTER DIAGRAM A Scatter Diagram is a graph that shows the relationship between two numerical variables, X and Y NO. OF PIZZAS / DELIVERY PERSONDELIVERYTIMESPAN It is used to look for a cause and effect relationship between the two Numerical variables. In this example, the Scatter Diagram shows that the Delivery time is less if the number of lunches per delivery person is less.
  • 54. C. ESTABLISH OPERATING TOLERANCES The Improve Phase - Step C xL xT xU USL LSL x y ( )xfy = NO. OF PIZZAS PER DELIVERY PERSON DELIVERYTIME
  • 55. A. VALIDATE MEASUREMENT SYSTEM ON X The Control Phase - Step A Measureσ LSL US L Tolerance Ensure noise from measurement system on X is small compared to process variation σprocess σmeasurement MSE, G R&R Test - Retest, Kappa Method, Intra Class Correlation
  • 56. B. ESTABLISH NEW PROCESS CAPABILITY The Control Phase - Step B LATE DELIVERY 153045 15 30 450 EARLY DELIVERY (MINUTES) USLLSL Z = 4.5
  • 57. C. IMPLEMENT PROCESS CONTROL A good Control Plan should be put in place to ensure sustained improvement. This may include: 1. Use of Control Charts to monitor Xs 2. Documentation of Control Plan 3. Update of process documents such as PFMEA 4. Error Proofing 5. Standardization The Control Phase - Step C
  • 58. RUN CHART A Run Chart is a time series plot of data that allows a team to study observed data for trends or patterns over a specific period of time. It captures instances when the process is changing more than statistically expected The 7 Basic Tools - 7 0 10 20 30 No.lunches/person
  • 59. The DMAIC Steps and Deliverables A. Identify project CTQs Identify customers, customer CTQs and Business Case B. Develop Team Charter Problem statement, Project Scope,Team, Milestones C. Define Project Scope High Level Process Map connecting customers to process 1. Select CTQ characteristic Identify measurable characteristic of CTQ (Y) 2. Define performance standards Confirm specification limits (requirements) for Y 3. Evaluate Measurement System Ensure measurement system is capable 4. Establish process capability Baseline the current process 5. Define performance objectives Understand statistical objective - reduce variation or shift means? 6. Identify sources of variation List significant causes (Xs) or factors 7. Screen potential causes Determine vital few Xs, which will be controlled 8.Discover variable relationship Find causal relationship and optimal solution 9. Establish operating tolerances Validate the relation and determine specs on Xs 10. Measurement System Evaluation on Xs Ensure X measurement is capable 11. Establish process capability Establish improved capability 12. Implement process control Document control plan It’s a common sense approachIt’s a common sense approach STEP DELIVERABLES
  • 60. Attributes of a Six Sigma GBproject 1. Customer Focused: A Six Sigma GB project should address a customer CTQ 2. Data Driven: In a Six Sigma GB project, decisions should be made using data analysis and not on gut feelings or intuitions 3. Variation reduction: Six Sigma GB projects address the issue of variation in process outputs and is aimed at reducing variation
  • 61. DMAIC Summary Knowing Customer CTQs Data driven improvements Focus on the (Xs) of the process Application of statistical tools to business problems Understanding process capability and its impact on quality An environment that demands only the highest performance standards. Success will be defined when our customers notice !
  • 62. Quiz Characterize part consists of A. Define and Measure B. Define, Measure and Analyze C. Define, Measure and part of Analyze Optimize part consists of A. Analyze, Improve and Control B. Improve and Control C. part of Analyze, Improve and Control In Six Sigma, Xs are A. Unknown variables B. Excess variation C. Process Inputs Which of the following is used to list Xs? A. DOE B. Fishbone C. Pareto The Pareto principle is A. Also called the 80/20 rule B. Used to identify the Vital Few C. Useful in the Analyze phase Which of the following tools is used to generate data? A. Analysis of Variance (ANOVA) B. DOE C. Regression Which of the following cannot identify the Vital Few Xs? A. Analysis of Variance (ANOVA) B. DOE C. Regression A Six Sigma GB project has to A. Finish in 3 months B. Show dollar savings C. Address the variation issue
  • 63. Total Quality Management • Total quality management(TQM) is a management philosophy • Seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and other organizational objectives. • TQM provides management with the ability to ensure quality through more streamlined and effective process-improvement channels. • A great range of organizations have deployed TQM, including small companies, large companies, and government departments (e.g., NASA). • TQM is no more relevant to any one type of organization than any other; on the contrary, it is a philosophy appropriate to any situation in which quality assurance is important.
  • 64. Six Sigma vs. TQM TQM Terminology Six Sigma Improvement Terminology •Identify the Project •Establish the Cause •Define •Diagnose the Cause •Measure •Analyze •Remedy the Cause •Improve •Hold the Gains •Control •Replicate Results •Nominate New Projects •Replicate
  • 65. Quality Management • Quality management can be considered to have three main components: quality control, quality assurance and quality improvement. • Quality management is focused not only on product quality, but also the means to achieve it. • Quality management therefore uses quality assurance and control of processes as well as products to achieve more consistent quality.
  • 66. Quality Management System • The International Organization for Standardization (ISO) created the Quality Management System (QMS) standards in 1987. • The last major revision was in the year 2008 and the series was called ISO 9000:2000 series. • are meant to certify the processes and the system of an organization, not the product or service itself. • ISO 9000 defines a QMS as: “ Manag e m e nt syste m to dire ct and co ntro lan o rg anizatio n with re g ard to q uality”
  • 67. The Benefits of a QMS • Encourages active and effective leadership • Involves and empowers staff • Staff will clearly understand their responsibilities • Ensures consistency • Focuses on root cause of problems

Notas del editor

  1. Instructor note: Explain the philosophy: Six Sigma is a Business Philosophy of focussing on continuously improving processes and reducing risks by getting complete Stakeholder involvement.
  2. Six Sigma is basically an American name given to an essentially Japanese best practice. Six Sigma is an attempt to simulate the Japanese work culture. Ever since Jack Welch announced to Wall Street in 2000 that Six Sigma was one of the drivers for their sustained double digit earnings and growth throughout the last decade, Wall Street analysts’ expectations from companies on Six Sigma has been high. The Malcolm Baldrige National Quality Award is an annual award that recognizes U.S. organizations in the business, health care, education, and nonprofit sectors for performance excellence. The Baldrige Award is the only formal recognition of the performance excellence of U.S. organizations given by the President of the United State
  3. Six Sigma is a problem solving methodology using statistical techniques to Gather, Examine, Modify and Sustain quality improvements. Each project follows the same 4 steps, with the ultimate goal being to raise a process’s sigma level, thus reducing defects. The graph explains what a sigma is and shows why a 2 sigma process has more defects than a 6 sigma process.
  4. Instructor Note:
  5. There are three levels of competencies of Six Sigma. The Green Belt or GB should be able to use DMAIC process with basic Six Sigma tools for project execution. This person Leads Six Sigma projects in their functions. The Black Belt or BB should be able to use advanced tools in projects and mentor GBs on Six Sigma techniques and tools. This person should Define Six Sigma projects and lead project teams and are process experts in their functions. Master Black Belt or MBB should be able to train Black Belts as well as Green Belts and Mentor Black Belt projects. They are the drivers of cultural change and should be able to mentor BBs across functions. They should be able to develop new tools. Champions are Business leaders who provide resources and champion the Six Sigma implementation in a business unit
  6. Note to instructor: Instead of reading the entire text, let the audience read it and then ask - Is this situation familiar to you? There are two parts to the problem. Internal and external. The internal part refers to comapany’s processes such as Order processing, Delivery, Inventory management, Training, Cooking etc. These are what Mr. Dabbawala has control over. The external part is the market factors such as competition. This is what Mr. Dabbawala does not have control over. Ask: Which part - internal or external - can Dabbawala focus on to improve sales? Also, qualify that while it is difficult to explain the entire Six Sigma process clearly without using specific data, this example will be used to highlight certain key characteristics of the Six Sigma process namely: 1. Problem scoping 2. The need for understanding and improving process capability 3. Data collection on Xs also
  7. Instructor note: Consider the flowing down of the Goals and objectives in the same example. Emphasize the lack of Customer focus and clarity of objectives at the lower level in this kind of flow down Ask: What does the Sponsor (Dabbawala) have to do to ensure proper focus in the problem definition (to improve sales). Click and reveal the Six Sigma define deliverables and explain the difference in terms of 1. What does the customer want 2. Getting the right team - not always the Sales team’s job 3. Identifying the process which is connected to the output (customer requirement)
  8. Late deliveries are causing customer dissatisfaction resulting in reduction in the customer base. Revenues have dropped 12% on a 6 month basis from the last year. Mr. Dabbawala as the Project Sponsor, identifies that the Delivery Performance needs to be improved to improve sales. Customers could be internal or external. Internally the Six Sigma process uses the Supplier-Customer concept to identify problems. This system is followed in the Toyota Production System. Functional interdependence can be mapped out using this concept. The CTQ should always be from the Customer’s viewpoint.
  9. Late deliveries are causing customer dissatisfaction resulting in reduction in the customer base. Revenues have dropped 12% on a 6 month basis from the last year. Mr. Dabbawala as the Project Sponsor, identifies that the Delivery Performance needs to be improved to improve sales. Customers could be internal or external. Internally the Six Sigma process uses the Supplier-Customer concept to identify problems. This system is followed in the Toyota Production System. Functional interdependence can be mapped out using this concept. The CTQ should always be from the Customer’s viewpoint.
  10. Late deliveries are causing customer dissatisfaction resulting in reduction in the customer base. Revenues have dropped 12% on a 6 month basis from the last year. Mr. Dabbawala as the Project Sponsor, identifies that the Delivery Performance needs to be improved to improve sales. Customers could be internal or external. Internally the Six Sigma process uses the Supplier-Customer concept to identify problems. This system is followed in the Toyota Production System. Functional interdependence can be mapped out using this concept. The CTQ should always be from the Customer’s viewpoint.
  11. Refer back to the earlier flowdown of Divisional Goals and Objectives and present the Six Sigma flowdown. Emphasize on 1. Tying business goals to customer CTQs 2. Identification of process at the functional level 3. Clarity at the employee level
  12. Instructor Note: Stress the need for identifying a continuous form of measurement for the CTQ. Also the need for identifying a measure that would reflect the customer’s concerns.
  13. Instructor notes: Stress on the need to get the allowable variation and also that it is imperative to aim for the target always. Mention Taguchi’s definition of Quality with respect to deviation from the target. "The quality of a product is the (minimum) loss imparted by the product to the society from the time the product is shipped." - Dr. Genichi Taguchi -
  14. Instructor notes: The tolerance around a target are the required Performance Standards. The customer can tolerate a variation in delivery time of 30 minutes on either side since lunch time is one hour. The tolerance at the USL and LSL need not be the same. Sometimes the customer specifies a limit only on one side.
  15. The Measure phase is also when the project team leader prepares for data collection.
  16. Instructor note: Emphasize the need for data collection on Ys as well as Xs. The checksheet can be a tool to convey what Xs to collect data on and in what form.
  17. Instructor Notes: Unlike the rear view mirror, in processes, we can never look back to see the real object - or the true data. We can however find out the image in the mirror (observed data) and the distortion introduced by the mirror (gage error).
  18. Instructor note: List the tools and explain which are graphical tools and which are analytical tools and stress on the use of both of them
  19. Instructor Note: Have the class do the calculations for the delivery time differences between target and actual delivered time. Write it on the board. Have them count the number of points in each class interval.
  20. Instructor note: Spend time on using the data from previous page to build this histogram.
  21. Instructor note: Now you have the following two pieces of information: 1. The customer requirements characterized by the Tolerance 2. Dabbawala’s delivery process performance characterized by the mean () and the standard deviation(). The mean is a measure of the location of the data while the standard deviation is a measure of the process variation.
  22. Instructor note: Use this slide to explain the characteristics of the normal distribution. 67.3% of the area under the curve lies within in +/- 1sigma of the target, 95% within +/- 2 sigma, 99.7% within +/- 3 sigma and so on. Emphasize how even though all the sample data lies within the customer tolerance, there is still a finite chance of Dabbawala making a defect and hence the need to use distributions - to predict population behavior from sample data.
  23. Instructor Note: Stress on the Cost of Achieving 6 Sigma Quality by various routes. Inspection can be a cost effective way of achieving Quality for processes which are upto 3 Sigma capable. For more capable processes (more than 3 Sigma), Quality has to be Manufactured in (improve processes). For processes that are more than 5 Sigma capable, improving processes is also an expensive way to achieve 6 Sigma Quality. Then Quality has to be Designed in - DFSS.
  24. Instructor note: Example: Note that Delphi (Automobile Supplier) manufacturing processes are designed for only 4 Sigma. Their traditional methods of beating the supplier can only take them to a certain limit Companies like Toyota, GE, Honeywell design all their processes for 6 Sigma and that is why they are ahead of competition. Give examples: 1. Toyota has been leading the J.D.Power survey for two decades 2. GE’s DFSS products such as the GE115 aircraft engine, Ctscan etc. are 3 - 5 years ahead of competition. 3. GE Power Systems delivery consistency has resulted in order booked for the next 4 years.
  25. Instructor note: Emphasize the applicability of the Sigma capability as a metric to any process. Also tie these numbers to Japanese reputation for Quality!
  26. Instructor note: Mention that this is where the Characterize part is over - Now you understand the problem. Give examples of lack of problem understanding in previous projects that you are familiar with. Stress the difference between the two objectives: 1. Reduce variation implies better control over the Xs 2. Shift the mean towards target implies changing the current X settings (technology change)
  27. Instructor note: Remind that now is where the data collection plan is put into practice. Refer to PMAP, FMEA and take the opportunity to explain the Fishbone.
  28. Instructor note: The fishbone is a tool that is used to identify the various possible causes of a problem. It is done in a Brainstorming session by a cross functional team comprising of all the stakeholders who are knowledgeable about the process. A fishbone done individually is useless - it captures only one person’s thoughts which may not be exahaustive. Note that this is a series of 5 Why Analysis. In the lunch delivery example, some Xs have been listed. Of course this is not the exhaustive list since this is an example done by people who are experts only at eating lunch and not at lunch delivery. Six Sigma is all about putting more rigor into problem solving by getting a cross functional team to participate on information synthesis and collective agreement on decision making. This is the Business Philosophy - Getting the Stakeholders involved all the time
  29. Instructor note: Remind the class of the qualifier in the beginning - that it is difficult to explain all the tools. The problem resolution is more statistical and we will only mention the tools that will be taught later. Also, tell about when the DOE is useful - When all data on Xs and corresponding Ys are not available or when data generation is prohibitive.
  30. Instructor note: Although the Pareto is shown here, it can be useful in earlier or later part of the project also.
  31. Instructor note: Talk about how this deliverable means identifying “quantitatively” the sources of variation. It could be a Y=F(X) relationship or just the results of the ANOVA which says 80% of the Y variation is caused by X1, X2 and their interaction etc.
  32. Instructor note: Touch upon the two objectives identified in Step no. 5 -shifting means and reducing variation and how this deliverable is interpreted accordingly 1. Shifting means implies changing the levels of the Xs (redesign or new technology) 2. Reducing variation implies tightening tolerances on the Xs (better control) Explain how the use of discrete data on the Xs makes it difficult to achieve better control (as in this example in some of the Xs)
  33. Instructor note: Emphasize how the Control phase (as in the Define phase), the people part (as opposed to the data part) of the project gains significance again. Control is about following processes.
  34. Instructor: Encourage participants to come up with their own interpretations of each of the deliverable in their projects