Quality and Statistic Tools

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QUALITY TOOLS AND STATISTICS REFERENCE GUIDE
03MAY05 Rev G
Literature PN 1307319
TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS
Order from Literature Distribution Phone 717-558-1495 Document # 402-105 Literature Distribution # 1307319
Tyco Electronics Six Sigma Operational Excellence 2100 Paxton Street Harrisburg, PA 17111 USA All rights reserved. This material is company confidential and is intended for internal use in Tyco Electronics only.
Revision G, May 2005 Changes are made periodically to this document. Changes and technical updates will be added in subsequent editions.
Rev. G
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TYCO ELECTRONICS 8D Reactive Problem Solving Process
TYCO ELECTRONICS Reactive Problem Solving Process
What is it? The TYCO ELECTRONICS Reactive Problem Solving Process is a systematic process that describes, analyzes, and subsequently uncovers the root cause(s) of the problem. It is used to solve "past" actions that are now causing unwanted effects. Generally, it takes more time, energy, and resources to correct a problem than to prevent it. Problem Solving is a reactive process utilized by an individual or team for describing a problem, finding its root cause(s), and implementing corrective action/solution.
When to use it?
When there is a gap between the current state and the documented standard When the product does not meet the requirements of the print or the specifications When the process is out of control When the customers require evidence of problem resolution
__________________________________________________________________________________________________ Rev. G Six Sigma Operational Excellence 1
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Reactive Problem Solving or Proactive Continuous Improvement: Which One?

Successful Gap Closure Depends on the use of proven basic tools... The Seven Basic Quality Tools:
Q Q Q Q Q Q Q
Successful Gap Closure

8D Reactive Problem Solving 8 Disciplined Steps 1. Define Concern 2. Describe Problem 3. Contain Problem 4. Root Causes 5. Corrective Action Plan 6. Implement & Verify 7. Prevent Recurrence 8. Celebrate & Communicate When To Use? Q Customer Complaints Q Process Out Of Control Q Standards Arent Met
Checksheet Pareto Diagram Fishbone Run Chart Control Chart Histogram Scatter Diagram
ACT PDCA CHECK
PLAN
8 8D
1 2 3 5 4
DO
Benefits of Using a Systematic Problem Solving Process Using a systematic approach to solve problems can help groups and individuals avoid some of the common pitfalls of ineffective problem solving. The benefits of this approach: Effectively analyzes all aspects of the problem before developing a conclusion Gathers all critical data, either about the problem or about proposed corrective actions/solutions Tackles problems that are within the control of group members Works on problems that are specific, manageable, and well defined Develops satisfactory rationale for a corrective action/solution Involves critical people - especially those outside the group - when looking for corrective actions/solutions Plans how to implement completely and evaluate the recommended corrective action/solution successfully
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The 8D Problem Solving Process The eight steps of the Problem Solving Process are often shown as segments of a wheel. Although the eight steps are numbered, you seldom proceed from step 1 to 8 without making several loops back to revisit and revise earlier steps. Sometimes you inherit problems that have already been defined and perhaps analyzed by others. In answering the checklist questions posed at each step, and producing the outcomes associated with each of the steps, problem-solving groups go through a series of expansions and contractions. Expansions are idea-generating stagespoints at which the group explores the diversity and creativity of all members. Contractions are idea sorting and selecting steps points at which the group evaluates the ideas and agrees on the best ones. Throughout the 8D Problem Solving process, a team will use process and statistical tools. Process tools are thinking processes which require a unique set of steps, while statistical tools are validation and verification techniques used to display information in ways that make the most sense and are the easiest to use.
Objectives
Upon completion of this course, participants will be able to: Solve problems by performing the tasks within each step of 8D (8 Disciplines) Apply selected quality tools in performing 8D steps
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TYCO ELECTRONICS Reactive Problem Solving Process (8D) Overview
T C A
8 1 Celebrate and Define concern, Communicate Organize and Success Plan
PL A
7 Prevent Recurrence
6 Implement & Verify Corrective 5 Action Develop Corrective Action Plan
Problem Solving Process (8D)
2 Describe Opportunity/ Problem 3 Contain Problem
K EC CH
4 Identify & Verify Root Causes
DO
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TYCO ELECTRONICS Reactive Problem Solving Process (8D)

8D Step 1. Define Concern, Organize and Plan 2. Describe the Opportunity/Problem 3. Contain the Problem Issues To Be Addressed What is our problem topic or opportunity? What is our objective? Who do we need to work on the problem? What is our project plan? What will our meeting and decisionmaking process be? What do we want to change? What interim containment actions may be implemented to isolate the customer from the problem? Are we following the standards? What is the implementation plan for containment? Were the interim action(s) successful? What's preventing us from reaching the "desired state"? How could we reach the "desired state"? What's the best corrective action/ solution (or set of actions)? What's the best plan for implementation? Will the corrective action(s)/solution(s) help us reach the "desired state"? Are we following the plan? How do we recognize contributions? Is this a new Best Practice that should be shared with others? Who should be informed of the outcome of the corrective action(s)/solution(s)? How do we communicate successes and future opportunities? Other applicable processes/tools. Many recognition plans identified. Many plans for communication identified. Expansion/Divergence What is wrong with what? Identify potential problem topics or opportunities. Develop list of potential problem solving team members.
Lots of problem statements for consideration. Brainstormed list of potential interim actions for containment. Include other part numbers that were produced using the process and that may be defective. Include other processes that could cause a similar defect in this product. Include all potential locations where the product is stored. Lots of potential causes generated. Lots of potential corrective actions/solutions generated. Lots of criteria for evaluating potential corrective actions/solutions. Lots of ideas on how to implement and evaluate the selected corrective action(s)/solution(s).
4. Identify and Verify Root Causes
5. Develop Corrective Action Plan
6. Implement and Verify Corrective Action 7. Prevent Recurrence 8. Celebrate and Communicate Success
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Contraction/Convergence Small group of key players selected. Problem or opportunity topic selected. Project plan developed. Boundaries of authority agreed upon.
What's Needed To Go To Next Step Key players contacted and committed to the project. Champion identified. Project plan in place.
One problem statement, with "as is" and "desired state" agreed upon. Interim containment action(s) selected. Containment plan developed.
"As is" and "desired state" described in measurable, observable terms. Gap identified. Plan implemented. Effectiveness of interim containment action(s) analyzed.
Root cause(s) identified and verified. Potential corrective actions/solutions clarified.
Root cause(s) documented and ranked. Root cause(s) selected. Clarified potential corrective actions/solutions documented. Documented plan for implementing and verifying effectiveness of corrective action(s)/solution(s).
Criteria for evaluating corrective actions/solutions agreed upon. Corrective action(s)/solution(s) selected. Implementation plans (including measures of effectiveness, contingency plans, and pilot plans) agreed upon. Pilot test run. Test data collected and analyzed. Control plan created. Implementation plan monitored. Continuing problems (if any) identified. Recommended corrective action(s)/solution(s) have other systematic applications. Recognition strategy selected. Employee list for sharing information created. Communication plan selected.
Analysis documented; implementation plan adjusted as necessary. Remove the containment action(s). Ongoing corrective actions/solutions in place.
Recognition plan documented and implemented. Employee list documented. Communication plan documented and implemented.
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TYCO ELECTRONICS Reactive Problem Solving Process (8D)

Problem Solving Process Step 1. Define Concern, Organize and Plan Concern/problem topic identified. Project plan in place for eliminating the problem and improving the process including scope, key activities, boundaries, responsibilities, timelines, resources, etc. Problem statement written in terms of gap between "as is" and "desired state." Implement interim actions to shield the customer from the problem. Selected root causes to work on. Revised problem statement if required. Produce list of as many ways as possible to solve problem. Decide on optimum corrective action/solution and plan its implementation. Perform pilot test. Evaluate effectiveness of corrective action/solution. Document improvements. Address open issues. Remove the interim actions and the problem does not re-occur. Apply permanent "fix." Modify and monitor to prevent recurrence of problem. Contributions of everyone involved recognized. Change or improvements communicated to all individuals who are affected. Desired Outcome
2. Describe the Opportunity/Problem 3. Contain the Problem 4. Identify and Verify Root Causes 5. Develop Corrective Action Plan 6. Implement and Verify Corrective Action
7. Prevent Recurrence 8. Celebrate and Communicate Success
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Define Concern, Organize and Plan
T C A
PL AN
To solve a problem, it is necessary to think. It is necessary to think even to decide what to collect. Robert Maynard Hutchins
K EC CH
DO
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STEP 1: Define concern, organize, and plan Define Concern Organize and Plan
Ideas about problem
P
Information gathered
Collect data on production, sales, employee/customer, surveys and feedback, reports, memos, etc. that would establish that a problem exists in a particular area. Determine if data indicates patterns or trends. Are the standards being adhered to? Identify problem topic or opportunity. What is the issue? Relate topic to objectives, business impacts and processes. Define purpose, objective, and scope of project. If needed, assemble a small team of 4-6 people. Ensure that the team has a designated champion. Identify problem topic or opportunity. Define purpose, objective, and scope of project. Reach consensus on: - Charter/Key operating boundaries Gather team's ideas and opinions about the problem area. Identify/define action plans.
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Forming a Problem Solving Team

Who should be on a problem solving team
Stakeholders who must support the corrective action/solution People with knowledge (e.g., experts) People accountable and responsible for problem area Customer (s), if appropriate Supplier(s), if appropriate
Charter: Key operating boundaries

What the team is expected to address Resources available Level of decision-making authority Customer and customer requirements Communications process
Team Size
According to research conducted by R. Bales and E. Borgatta, team size can affect the following: Group interaction Group attitudes Group commitment to achieving its goals
When the group or team is small (four-to-six members), interaction is enhanced, members are more personally satisfied, and commitment to the team's goals is greater. Smaller teams encourage buy-in of the team's purpose and objectives, which ensures greater success.
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Tools
For collecting, analyzing/displaying data
Interviewing Surveying
For generating ideas

Brainstorming Brainwriting Interviewing
For making decisions/reaching consensus

Balance Sheets Criteria Rating Forms List Reduction Paired Comparisons Weighted Voting
For documenting processes/planning action

Flowcharts Gantt Charts PERT Charts
8D Step 1: Organize and Plan

Checklist 1. Has the objective been identified? 2. Has the problem topic or opportunity been identified? 3. Has the team adhered to the process according to the standards? 4. Have team members been selected (including those who have the information and/or knowledge to solve the problem)? 5. Has the project plan been developed? 6. Have meeting and decision-making processes been agreed upon? Yes No
8 1 Celebrate and Define concern, Communicate Organize and Success Plan 7 Prevent Recurrence 2 Describe Opportunity/ Problem 3 Contain Problem
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Describe the Opportunity/Problem
T C A
PL AN
It isnt that they cant see the solution. It is that they cant see the problem. G.K. Chesterton
K EC CH
DO
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STEP 2: Describe Opportunity / Problem Summarize and Interpret Data Write Problem Statement
PROBLEM STATEMENT
P
AS IS DESIRED STATE
Obtain additional data needed to narrow the problem (who, what, when, where, why, how, how manyin quantifiable terms). Display data in appropriate formats. Interpret data to clarify the problem. Compare data with business objectives. Identify the gap. Write an "as is" statement describing the present situation. Write a problem "desired state" describing the requirement or specification. - This "desired state" is based on returning the product/process to the documented drawing, standard or specification.
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Problem Statements
Criteria for problem statements
Based on data No causes No corrective actions/solutions Not too broad
Guidelines
Wording of as is" and desired state" problem statements either positive or both negative. - Mirror image Use the same metric - #'s or %'s
Example of Problem Statement

Problem Topic: Employee complaints about parking Problem Statement: As Is - 90% of the second shift has a place to park. Desired State - 100% of the second shift has a place to park. Gap = 10%
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Tools in the Tools Section

Cause-and-Effect Analysis (Fishbone Diagrams) Checksheets Cost-Benefit Analysis Force-Field Analysis Histograms Interviewing Pareto Analysis Pie Charts Surveying Run Charts

Brainstorming Brainwriting

8D Step 2: Describe the Opportunity/Problem

Checklist 1. Has data about the problem been obtained and reviewed? 2. Has the problem been identified by What, When, Why, How and How Much? 3. Have trends been identified? 4. Has the customer provided input to the problem? 5. Has the problem been defined in measurable terms (with As Is, Desired State, and Gap)? 6. Do we have the right team members to proceed to the next Step? Yes No
8 1 Celebrate and Define concern, Communicate Organize and Success Plan 7 Prevent Recurrence 2 Describe Opportunity/ Problem
Problem Solving 6 Process 3 Implement & (8D) Contain Verify Problem Corrective 5 4 Action Develop Identify & Corrective Verify Root Action Plan Causes
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Contain the Problem
T C A
PL AN
The best way to have a good idea is to have lots of ideas. Linus Pauling
K EC CH
DO
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STEP 3: Contain Problem Contain the Problem (Damage Control")
P
Brainstorm and select interim actions for containment to ensure that all potential locations and part numbers of defective product have been included in the containment plan. Validate that the interim actions do not adversely affect process capability. Plan for implementation of interim actions: - Assign responsibility - Establish timeframes (immediate) - Address open questions Implement interim actions: - Monitor for effectiveness Verify interim actions: - Were they successful?
Brainstorming
Rules of Scribing
Guidelines for Brainstorming

No evaluation Encourage wild ideas Hitchhike - build on ideas of others Strive for quantity
Post flipchart with problem statement. Write large enough. Write verbatim. Leave space between ideas. Use bullets or dashes. Post each page as it is
Types of Brainstorming
Freewheeling Round robin Slip method
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Elements of an Implementation Plan

Break implementation tasks into achievable steps. Assign task responsibilities. Set up time frame and milestones. Create a document for tracking the progress of the implementation. Include strategies for communicating and gaining commitment. Include contingency plans, in case things go wrong. Include measures to evaluate what impact the corrective action/solution is having or has had on the problem.
What a Good Plan Should Look Like

What A B C D Who Jim Sue Lynn Bill/Jim When J F M A M -------| |--------| ----------------| |----|
Activities Milestones Who What
When
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Tools
Cause-and-Effect Analysis (Fishbone Diagrams) 5 Why Analysis Checksheets Cost-Benefit Analysis Force-Field Analysis Histograms Interviewing Pareto Analysis Pie Charts Surveying Run Charts



8D Step 3: Contain the Problem

Checklist 1. Have potential containment actions been identified? 2. Have containment actions been selected? 3. Have containment actions been implemented? 4. Are the containment actions effective at protecting the customer from defects? 5. Have containment actions been verified by the customer? 6. Do we still have the right members on the team to proceed to the next step? Yes No
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Identify and Verify Root Causes
T C A
PL AN
Opinion has caused more trouble on this little earth than plagues or earthquakes. Voltaire
K EC CH
DO
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STEP 4: Identify and verify root cause

Identify Probable Causes
Cause 1 Cause 2 Cause 3 Cause 4
Analyze Probable Causes

Cause 1
Select Root Causes for Action

Cause 1 Cause 2 Cause 3 Cause 4
Cause 2 Cause 3 Cause 4
Review customer requirements. Brainstorm and organize possible causes (e.g., fishbone). Explore levels of cause. Identify probable causes. Follow probable causes process: 1. Identify common themes. 2. Label causes: a. Strongly correlated to the effect b. Moderately correlated to the effect c. Weakly correlated to the effect
Select probable causes for data collection. Design collection instrument (e.g., checksheet). Collect/analyze/display data. Identify root causes preventing the "desired state" from being achieved.
Prioritize root causes. Apply criteria of actionable and within scope of team. Select root cause(s) to work on. Organize and implement experiments to test and validate root causes. Revise problem statement if required.
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STEP 4: Identify and verify root cause (cont.)

Generate Potential Corrective Actions Clarify Potential Corrective Actions CORRECTIVE ACTION A CORRECTIVE ACTION B CORRECTIVE ACTION C CORRECTIVE ACTION D CORRECTIVE ACTION E
As is Desired State
Cause 2
Corrective Action A Corrective Action B Corrective Action C Corrective Action D Corrective Action E
Cause 4
Review Problem Statement and Root Causes. Make sure all team members are present.
Generate potential corrective actions: - Focus on reducing or eliminating root cause(s). - Solicit ideas from team members and others outside the team.
Use clarifying questions to ensure all members have a common understanding of each corrective action/solution.
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Interviewing Cause-and-Effect Analysis (Fishbone Diagrams) 5 Why Analysis Checksheets Cost-Benefit Analysis Force-Field Analysis Histograms Pareto Analysis Pie Charts Surveying Run Charts Brainstorming Brainwriting Balance Sheets Criteria Rating Forms List Reduction Paired Comparisons Weighted Voting Flowcharts Gantt Charts PERT Charts

8D Step 4: Identify Root Causes

Checklist 1. Has the problem statement been reviewed? 2. Have probable causes been identified? 3. Has data been collected on the probable causes? 4. Have root causes been prioritized and selected? 5. Have potential corrective actions/solutions been identified? 6. Have potential corrective actions/solutions been clarified? 7. Do actions need to be taken to ensure that other potential causes do not create unwanted effects? 8. Do we still have the right members on the team to proceed to the next step? NOTE: You know you have identified the root cause if you can make the defect" occur or go away.
Yes
No
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Develop Corrective Action Plan
T C A
PL AN
Take care of the means, and the end will take care of itself. Gandhi
K EC CH
DO
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STEP 5: Develop corrective action plan

Select Criteria Criterion 1 Criterion 2 Criterion 3 Criterion 4 Choose criteria per business demands (e.g. cost, control, time, resources). Use Criteria to Select Best Corrective Action(s)
Step 1
Develop Plan
Commitment Strategy Contingency Plans Measures
Criterion 1 Criterion 2 Criterion 3 Criterion 4
CORRECTIVE ACTION A CORRECTIVE ACTION B CORRECTIVE ACTION C CORRECTIVE ACTION D CORRECTIVE ACTION E
Step 2 Step 3
Bracket ideas. Combine ideas. Assure ideas are actionable and within scope of team. Design a selection instrument (e.g., Criteria Rating Form). Make sure to get input from all team members, process owners and stakeholders. Select best corrective action/solution (or set of actions).
Develop plan for implementing corrective action(s)/solution(s) including measures, contingencies, and pilot tests: - Arrange for customer involvement. - Assign responsibility. Validate that all team members understand their part in the plan. Ensure all required resources are allocated.
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Tools
Checksheets Cost-Benefit Analysis Force-Field Analysis


8D Step 5: Develop Corrective Action Plan

Checklist 1. Have pros and cons been voiced? 2. Have potential corrective actions/solutions been filtered and combined? 3. Have criteria for selection been identified? 4. Has a corrective actions plan been developed, including the pilot (if required) - Who, What, When, Where, and How to Measure? 5. When implemented, will the permanent corrective action/solution cause other problems? 6. When implemented, will the permanent corrective action/solution cause problems for other customers? 7. Based on our evaluations, will the permanent corrective action/solution totally eliminate the defect associated with the root cause? Yes No
8 1 Celebrate and Define concern, Communicate Organize and Success Plan 7 Prevent Recurrence 2 Describe Opportunity/ Problem
Problem Solving 6 Process 3 Implement & (8D) Contain Verify Problem Corrective 5 4 Action Develop Identify & Corrective Verify Root Action Plan Causes
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Notes
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Implement and Verify Corrective Action
T C A
PL A
The great end of life is not knowledge but action. Thomas Huxley
K EC CH
DO
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STEP 6: Implement and verify corrective action

(Note: This is the implementation of a proposed corrective action as a pilot. Full implementation occurs in step 7.) Verify
9
Conduct simulations and pilot tests: - Gather data. Using test data and customer input, verify that the initially identified root cause is the actual cause. Evaluate effectiveness of corrective action/solution: - Use customer input. Verify selection of measurements. Document improvements. Address open issues.
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Interviewing Cause-and-Effect Analysis (Fishbone Diagrams) Checksheets Cost-Benefit Analysis Force-Field Analysis Histograms Pareto Analysis Pie Charts Surveying Run Charts



8D Step 6: Verify Effectiveness

Checklist 1. Have pilot(s) been conducted? 2. Has data been collected? 3. Has success been achieved based on closing the problem gap and addressing customer feedback? 4. Have new problems (if any) been identified? 5. Are containment action(s) still in place? 6. Do we still have the right team members to proceed to the next step?
Yes
No
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Notes
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Prevent Recurrence
T C A
PL A
Those who cant learn from the past are doomed. Gandhi
EC CH
DO
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STEP 7: Prevent recurrence

Note: Prevention results from implementation of the verified corrective action. Prepare Implement
Step 1 Monitor Step 2 Step 3 Corrective Action(s) In Place
Collect Data Collect Data Collect Data
Utilize Data
Restate the root cause as required. Conduct training as required. Review customer data.
Implement corrective action(s): - Remove interim containment actions. - Collect in-process data to track implementation progress. - Implement contingency plans as required. Maintain communication with process owner and stakeholders. Evaluate: - Collect results data for evaluation of the effectiveness of corrective actions/solutions. - Obtain customer feedback. Update all required documentation to ensure ISO/QS compliance. - Quality Inspection Plan(s) / Control Plans - Process Specifications - Quality Specifications - Product Prints - Local Documents (Work Instructions) - Routings - Part Master - FMEA(s)
Analyze data. Display data in appropriate formats.
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STEP 7: Prevent recurrence (cont.)

Make Comparisons Complete Evaluation
P
New problems?
Desired State Corrective Action
Recycle
If gap" still exists, address why. Identify new problem areas (if any) created by corrective action(s)/solution(s). Address additional problems as needed. Update the standard process documentation, if required. What practices, procedures, and systems allowed the initial problem to occur?
Compare new data with business objectives and corresponding desired state." Compare new data with previous analysis.
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Cause-and-Effect Analysis (Fishbone Diagrams) Checksheets Cost-Benefit Analysis Force-Field Analysis Histograms Interviewing Pareto Analysis Surveying Pie Charts Run Charts

Flowcharts Gantt Charts PERT Charts Procedure Sheets Boundary Worksheets
8D Step 7: Prevent Recurrence

Checklist 1. Has the problem statement been reviewed? 2. Has the plan been reviewed? 3. Have all containment actions been removed? 4. Has monitoring showed that the corrective action(s)/solution(s) are continuing to work? 5. Have new problems (if any) been addressed using 8D? 6. If a customer has identified this as a problem, has the customer also confirmed that the problem has been resolved to their satisfaction?
Yes
No
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Celebrate and Communicate Success
T C A
PL A
Nothing comes from doing nothing. Shakespeare
8D Step 8: Celebrate and Communicate Success

EC CH
6 Implement & Verify Corrective 5 Action Develop Corrective Action Plan Problem Solving Process (8D) 4 Identify & Verify Root Causes
DO
Checklist 1. Has the 8D team been recognized? 2. Have changes been communicated across the organization as required? 3. Have the changes been communicated to other sites where this same process is performed? 4. Has the process been standardized?
Yes
No
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Action Planner
Reflections
What are my key learning points?
How can I use what I've learned?
Action Plan
What?
How and when?
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Notes
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DMAIC MODEL
D M A I C
The DMAIC model (Define, Measure, Analyze, Improve and Control) is a rigorous, disciplined process utilized by the Black Belts in leading the Six Sigma project team. The model consists of defined phases and a series of tools within each phase. The tools are quantitative (statistical), qualitative, and implementation. Each Six Sigma project must complete all 5 phases in sequential order. However, based on the actual results obtained, it is possible that a project may cycle between the Measure Analyze Improve phases before entering into the Control phase.
Rev. G
Six Sigma Operational Excellence
DMAIC
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Reactive Problem Solving or Breakthrough Improvement: Which One?

8D Problem Solving Process A general process for reacting to unforeseen change in: work process manufacturing process results customer satisfaction definition of problems containment of the problem analysis of data understanding and elimination of root cause creative ideas more alternatives teamwork commitment there is a gap between the "as is" state and the documented standard product does not meet print process is out of control when the customer requires evidence of problem resolution WHEN THE PROCESS IS USED DMAIC A proactive, tightly focused process for use by Six Sigma project teams commissioned by leadership to solve: a systematic business process issue a systematic work process issue highly wasteful / inefficient processes a disciplined approach elimination of unneeded work focus on the control of input variables shared responsibility strong customer/supplier communication lines critical measurement confidence in results you need to improve the process of a particular, currently existing output you are about to produce a new output, the need for which has recently been determined
THE PROCESS FOSTERS
USE IT WHEN
Basic Concepts of Quality

The list below summarizes the concepts of quality on which the Quality Improvement Process is based. These are contrasted with some conventional views on quality and quality improvement.
Definition of Quality The Performance Standard We Meet Requirements By Quality Improvement Opportunities Are Selected By We Can Measure Our Success By Conformance to requirements internal and external customers Consistently meeting the established requirements Knowing the requirements; preventing mistakes from occurring Looking for areas aligned with the business strategy and with the greatest payback Measuring our work against facts and data such as customer requirements and process improvements NOT NOT NOT NOT NOT Expensive, luxurious or top of the line Close enough or Almost Only finding and fixing mistakes; fixing it in the field Picking at random. firefighting Opinions, guessing or gut feel
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DMAIC
Step 1: DEFINE
Description: Leadership identifies a process that is not meeting the strategic objectives, establishes the scope and boundaries for the project and commissions a Black Belt to lead a Six Sigma project team.
Tasks to do / Questions to Ask Are the wasteful processes defined as an output? Which process requires improvement the most? Who is the process owner? 2. Who are the subject matter experts? 3. Who should participate in the improvement effort? What are the boundaries for the process? 4. Who are the customers for this process? What are the customers requirements? What is to be produced? 5. Draft specific description of each requirement in terms of physical and measurable attributes of the output. Review agreed-upon customer requirements. Validate the detailed description with the customer 6. Define the project goals and savings. Outcome Checklist Is this process the most critical facing your Project commissioned by Executive Champion. organization? Project Charter completed. Has the Project Charter been completed? Improvement opportunity identified. Has a Black Belt been assigned? Goals and savings identified. Has a process owner been identified? Savings agreed to by Finance. Have the team members been identified? Subject matter experts identified. Have the boundaries, inputs, and outputs been The improvement team members identified. identified for the project? (initial Value Stream Map) The customers of the process identified. Has Finance endorsed the projected savings? 1.
Guidelines The process owner has accountability and authority to make changes in the process. Standards are being followed. Identify the current state, the entitlement state, and GAP. Team consists of a Black Belt, process employees, process owner and finance. Process defined as an output statement. Boundaries should be established by identifying suppliers, inputs, customers, and output. Identify internal customers by name.
Leadership Verification Questions Step 1

Prioritize How did you define the general project; what data did you use? How is this project aligned with the business strategy? Select Project Based on current process response, where should you focus your attention and why? Identify wasteful process How have you determined the boundaries to your process? How does this process support external customer requirements? What documented standards are being followed for the wasteful process Commission Team Who is the Black Belt? Who are the subject matter experts? Who will be responsible for implementation of this improvement? What are the teams next steps?
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DMAIC
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Step 2: MEASURE
Description: The Six Sigma project team develops a baseline for the current process by generating a process map and identifying the input / output variables and the value adding / non-value adding steps. The team also determines the current measurement system and validates the capability of the measurement system.
Guidelines 1. Search for existing documentation; dont reinvent the wheel. 2. Work process steps must include major activities. 3. Complex work requires more detailed information. 4. Measurements should be derived from customer requirements and supplier specifications. 5. Measurement plan should be completed before work begins. Customer requirements and / or probable causes should support critical success factors. 6. Three types of measurements: Baseline, Process, and Results. 7. Need to make a clear, reasonable choice between gathering new data or using existing data.
Tasks to do / Questions to Ask Benchmark other processes that have produced same or similar outputs. Document the current work process. Add to Value Stream Map, begin detailed Process Maps, and do process layout (spaghetti chart) Complete a process Failure Mode and Effects Analysis (FMEA). Review list of customer requirements and supplier specifications from the boundary worksheet. Record on Value Stream Map. Identify steps for elimination from detailed process maps: Does this operation / step contribute to the conformance of a specific customer requirement? If this process is not done will the process fail? If the answer to both questions is no, remove the step. Identify process and results measurements for each supplier specification. Identify any other measurements critical to producing an output that meets requirements. Identify critical success factors and their location in the process. Characterize the process and identify the primary sources of variation. Complete the measurement system analysis. Establish the baseline process capability. Establish the baseline process capacity (compare to takt time). (Suggested Process: Hints: Examine the decision blocks to determine if directly Generate VSM & supported by a customer requirement or cause and effect Detailed Process diagram. (May use brief QFD.) Maps. Examine the tasks to determine if directly supported by a Brainstorm proposed customer requirement or cause and effect diagram. measurements. Examine the data collected and unit of measure to Complete determine if directly supported by a customer requirement or measurement cause and effect diagram. justification. If related to customer requirement or cause and effect Create check sheets diagram, then measure; otherwise, eliminate the for data collection measurement. Show location of any measurements on Establish a plan for collecting and displaying data. maps. Checklist Does the process documentation show a sequence of activities / tasks? Are the activities / tasks at sufficient level of detail? Does the work process documentation show inputs / outputs? Does the process documentation identify decision points that will prevent errors? Does the work process specifically enable each supplier specification? Have you verified the documentation with the employees working in the process to ensure reality? Is the documentation clear enough to be used for training a new employee? Are the critical success factors identified? Have you included both in-process and results measures? Have you established a plan for collecting and displaying your data? Will you be using existing data or collecting new data? Have customer requirements been defined? Is each process specification related to a customer requirement? Are measurements taken as early as possible in the process?
Outcome Identify systematic way of producing the output. (The process as it currently exists). Identify process steps for elimination. Identify relevant measures Plan for collection of own data. Completed Process FMEA. Completed current Value Stream Map Completed Measurement System Analysis.
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Leadership Verification Questions Step 2: MEASURE

Map existing process Elimination What methods did you use to ensure that the flowchart What process did you use to determine which steps in coincides with reality? the process required removal? What steps did the team take to determine ownership of Have you identified any residual activities? the process? Am I doing this just in case? Select Measures Collect Data and Complete Analysis Based on current process response, where should the team focus its attention and why? How have you What data should I collect? identified relevant data? What is the purpose of this data collection? Does that In what unit of measure do I state my requirements? information add What dimension will I use to define my key measurements? to the ability to When measuring a variable, do I have control over it or is it an input to the process? monitor/ Where is the earliest point in the process when I can collect the data? improve my Will my data collection points give me robust data? process? Have I validated this data collection against my flowchart, procedure sheets, customer requirements, and my cause and effect diagram? How will this measurement impact my ability to conform to customer requirements? Process Collect Data and Complete Analysis Capability Are control charts being used on the process Xs or Ys? What is the Discuss the results from Minitab. baseline What is the baseline process capability (Cp; CpK, etc.)? process Is the process capable of meeting the internal and external customer requirements? capability? What is the estimated DPMO? Show me the initial control plan. What is the Rolled Throughput Yield? Process Capacity Collect Data and Complete Analysis What is the Compare process cycle times with customer data baseline Compare takt time with capacity of each step and identify constraints process Identify lead times for supplier and upstream processes capacity of the Identify inventory levels between each process step and for raw material major steps of Compute capacity at 80% theoretical (only value adding steps) and 0 defects (entitlement capacity) the process? Measurement Collect Data and Complete Analysis System Analysis Based on the R chart by operator is the measurement system stable? Has the Based on the X-bar chart by operator what is the part to part variation vs. the measurement measurement error? system Based on the response by operator chart what can you determine about bias? analysis been Based on the operator to part interaction chart is there any interaction? completed? What is the total R&R? Is this acceptable or what is the plan to improve? Collect Data and Complete Analysis Process FMEA Has the What factors contribute to the highest risk priority numbers (RPN)? process FMEA What is the Pareto analysis for the RPNs? been Is there any relationship between the most significant RPNs and the process Xs and Ys? completed and What controls are in place to protect the customer from receiving defects due to factors with high validated? RPNs?
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Step 3: ANALYZE
Description: Uses data and Six Sigma tools to establish the key process inputs that affect the output. Guidelines 1. All the key product performance characteristics should be identified. 2. Include employees, customers, and suppliers. 3. What / How to measure should be decided before the work process begins. 4. Customer requirements or probable causes should support critical success factors. 5. Measurements can be divided into before, during, and after measurements. 6. Concentrate on the vital few measurements that provide essential information about the quality of your output. 7. The customer may serve as a valuable resource for input and data. Tasks to do / Questions to Ask Prepare several Pareto Charts by analyzing the data from several perspectives, for example: Time sequence, cycle times, takt time Type of product Location in the process Type of defect Type of waste (7 Wastes) Etc. Locate the most prominent bar(s) from the Pareto charts and place this at the head of the fishbone diagram. Perform root cause analysis by asking why five times and display on a Fishbone. Select critical success factors (before, during, after) based on the root cause analysis. Collect information on the critical success factors and display appropriately. Complete the Cause and Effect diagram. Complete the ANOVA. Evaluate the utilization of and data from SPC charts. Complete the Multi-Vari studies. Complete the Correlation and Regression analysis. Checklist Have Pareto diagrams been constructed? Have you asked why five times for each potential cause on the fishbone diagram? Has the Cause and Effect diagram been completed? Are the SPC charts providing any meaningful information? Has the Multi-Vari study been completed? Has the Correlation and Regression analysis provided a useful prediction equation?

Outcome A systematic plan for analyzing the data and identifying potential root causes for the gap between actual performance (current state) and the desired outcome (entitlement). Create future state Value Stream Map)

Analyze Data Am I using the proper tool to collect the data? Have I collected enough data to draw valid conclusions? Am I monitoring irrelevant data? How do I validate that the data is pure? What tools are most effective in interpreting the voice of the process? What message do the graphs give me in terms of my ability to meet the requirements? How could I further verify the messages seen the graphs? What message do the graphs give me in terms of my ability to meet the requirements? How could we further verify the message seen in the graphs? Is the process in control? How did we determine that? Is the process within specifications? Does it / can it conform to customer requirements? (Is the process capable?) How have we confirmed these conclusions? What are our plans for proceeding further with this analysis? Identify Root Cause Have Pareto diagrams been constructed? Have you asked why five times for each potential cause on the fishbone diagram? Have the key process variables been defined? What are the results of the hypothesis testing? Do you have sufficient information to proceed with the Design of Experiment (DOE)? 6 Six Sigma Operational Excellence Rev. G
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Step 4: IMPROVE
Description: Generate, select, and implement a trial solution to close the gap and meet the goals of the Six Sigma project. The identified improvements will optimize the process outputs and eliminate / reduce defects and variation. The new process operating conditions are validated. The activities will be presented in 2 stages the first directed at the development of a trial solution and the second at the implementation of the solution. Tasks to do / Questions to Ask Guidelines 1. Potential solutions should be based on data generated and the root cause Brainstorm possible solutions. analysis from step 3. Develop criteria to assess the solutions. 2. Criteria selected to evaluate the solutions should be based on customer Plan and complete the DOE requirements or critical success factors. Select the trial solution. 3. Selection should be based on criteria, not opinion. Develop a plan to implement the trial 4. Solutions should be selected by consensus. (Build support) solution. 5. After the process is in control, look for synergistic opportunities Implement changes as required. combining statistical and lean concepts: (Assessment Criteria: Eliminate non-value-added steps from Value Stream and Process maps (using Does the customer care the criteria to the right). about it? Establish improved layout and process flow (cell design, etc) Does it physically change Balance work based on standard work and takt time the thing / output? Establish inventory control with buffers, Kanbans, and other techniques. Is it done right the first time? Focus advanced tools such as Quick changeover and error-proofing on If you answer no to any of these constraints to improve overall throughput. the step is non-value-added. (* Lean tools can be the fix to problems confirmed by advanced statistical analyses.) 6. Implementation plans should include Who, What, When, Where, Why. 7. Plan the DOE: The statement of the experimental objective? The screening experiment. The Characterization. Analyze using ANOVA and regression. The prediction equation. 8. Trial solutions should be on a pilot first to reduce the risk of failure. Request customer feedback on the success of the trial solution. Outcome Checklist Have all potential solutions been identified? Trial solutions have been Have criteria been selected that will ensure conformance to customer implemented and have closed the requirements? gap in a pilot program Has the DOE been completed? Has the DOE analysis (ANOVA, Regression and Correlation been completed? Has an implementation plan been completed? Has the implementation plan been reviewed with the customer? Have Critical Success Factors (measurement) been identified? Is the implementation plan working? Leadership Verification Question Step 4A Generate Trial Solutions Select a Trial Solution Have all potential solutions Have criteria been selected that will ensure conformance to customer been identified? requirements? Implement a Trial Solution Has an implementation plan been completed/ Has the implementation plan been reviewed with the customer? Have milestones been identified as part of the implementation plan? Have Critical Success Factors (measurement) been identified? Has the DOE been completed? Have the ANOVA and Correlation / Regression analysis been completed? Is the implementation plan working?
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Step 4B Description: Confirm results and validate the improvements. Guidelines 1. Process changes should be documented with a flowchart and procedure sheets update. 2. Process FMEA and control plan should be updated. 3. Changes should include the measurement points in the process and check sheets. 4. Evaluation of conformance should be based on customer requirements and critical success factors. 5. Customer provides you with confirmation of your conformance. Outcome Verify that the trial solution is working and meeting customer requirements. Tasks to do / Questions to Ask Continue to meet with customers to identify changing requirements. Continue to monitor processes to identify areas for process improvement. Benchmark other processes to identify better practices. Implement necessary changes. Standardize process changes where applicable. Identify new knowledge that is a result of the pilot. (Any side effects or unexpected results, implementation problems, etc.) Checklist Have customer requirements been met? Has the customer confirmed these changes? Are there opportunities for process improvements? Have the following been updated: Process FMEA Future Value Stream and detailed Process Maps Layout and process flow with documented standard work Data collection process Control plan Have process optimization tools been utilized: Process flow and layout? Line balancing and One piece flow? Kan-Ban? Visual control? Workplace Organization (5S)? Have Poka-Yoke (Error Proof) devices been implemented? Has the process capability for the revised process been documented?
Leadership Verification Questions Step 4B

Confirm the solution works Have customer requirements been met? Have these changes been confirmed by the customer? Are there opportunities for process improvements? Have process optimization tools been implemented? Have visual controls been implemented? Has the desired state been achieved? If no: Was your selected root cause removed? If not, have you revisited your criteria rating form for the solutions? What other root causes do you plan to explore? Have you reviewed your measures to be sure they are robust? If yes: Have you developed your implementation plan?
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Step 5: CONTROL
Description: Implement process changes and standardize the solution, assign responsibility to maintain the gains, return the process to sustaining operations.
Guidelines 1. All process documentation must be updated to reflect process changes. 2. Methods for collecting data to ensure the conformance of the process must be assessed and implemented.
Tasks to do / Questions to Ask Verify the flowchart and procedure sheets (standard work) are reflecting reality. Verify the measurement system is robust enough to be implemented system wide. Incorporate what you learned from the pilot into the implementation plan. Develop a plan to implement the solution. Update all the documentation required by the Quality Management System. Identify methods and tools used to train the employees on the new methods. Implement changes as required. Develop the final presentation for project closure. Document the project savings.
Outcome Process improvement changes have been implemented and have closed the performance gap. Process documentation to support the Quality Management System has been updated and deployed. Revised process is returned to the process owner and sustaining operations to maintain the gains and deploy continual improvement techniques as applicable. Checklist Have all flowcharts and procedure sheets been updated and to they reflect reality? Has all of the required documentation been updated to ensure ISO compliance? Quality Inspection Plan(s) Process Specifications Quality Specifications Product Prints Local Documents (Work Instructions) Routings Part Master FMEA(s) Layout and process flow (verify cycle times) Load leveling, buffers, and kanbans used conjunction with production control systems Has an implementation plan been completed? Has the customer reviewed the implementation plan? Have milestones been identified as part of the implementation plan? Is the implementation plan working? Has the process owner taken control of the revised process to maintain the gains? Identify best practices and lessons learned during the project.

Implement process changes What additional lessons were learned from the pilot? Standardize the solution Have all flowcharts and procedure sheets been updated and do they reflect reality? Has all of the required documentation been updated to ensure ISO compliance? Does the control plan focus on the Xs rather than the Ys? Recognize and reward the improvement Has the team been adequately recognized for their accomplishments? Have the best practices and lessons learned been documented? _ _ _ _ _ _ _ _ Quality Inspection Plan(s)? Process Specifications? Quality Specifications? Product Prints? Local documents (Work Instructions / standard work)? Routings? Part Master? FMEA(s)?
Sponsor, black belt and team host the celebration for the regular workers and leaders who at this point are implementing and working in the improved process.
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LEAN STRATEGIES
LEAN STRATEGIES -- TABLE OF CONTENTS:

Lean Strategies and Building Blocks ...................................................................... 1
8 Wastes (Muda) Value-Added vs. Non-Value-Added ................................................. 2 Continuous Improvement (Kaizen), Teams................................................................ 3 Cycle Time: for the Process, Worker, Machine ........................................................... 3 One-piece Flow (JIT) (Batch Reduction) .................................................................. 5 Pull System (Kanban).............................................................................................. 6 Quality at the Source, Error Proofing, Poka Yoke ....................................................... 7 Quick Changeover................................................................................................... 7 Standard Work, Standard Operations........................................................................ 7
Takt Time (Balance Work to Customer Demand) ....................................................... 8

Total Productive Maintenance .................................................................................. 9 Value Stream Mapping ............................................................................................ 9 Work Flow, Visual Control, Cell Design...................................................................... 9 Workplace Organization (5S) ................................................................................. 10 Bibliography ......................................................................................................... 10 Lean Tools Linkage to Business Objectives ........................................................... 11
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LEAN STRATEGIES Lean strategies are added to the traditional Six Sigma tools to provide a more powerful and comprehensive improvement approach. While Six Sigmas statistical tools are focused on the goal of assuring capability (Can we perform at a six sigma, defect-free level?), Lean provides a complimentary focus of assuring capacity and efficiency (Can we meet market demand and make money?). Lean techniques reduce cycle times and non-value-added activities, and in so doing: lower costs, reduce lead times, and improve flexibility. Lean is not new. It was practiced during the 1920s at Ford, and Lean concepts are sometimes looked at as common sense. More recently, the Toyota Motor Company took the concepts to an uncommon level of implementation, and showed the tremendous power of combining Lean into a modern factory setting. Other organizations have applied Lean beyond manufacturing, in functions as diverse as banking, hospitals, insurance, and restaurants. Lean is not one tool or concept, but a systems approach based on Just-in-Time (JIT) and autonomation (autonomous automation). JIT is based on a continuous flow of materials or information, minimal inventory, and a pull system from the customer. Autonomation involves the use of smart machines that are error-proofed so they eject defects or stop the process when they are encountered. Both JIT and autonomation assume capable processes, so the statistical tools of Six Sigma are pre-requisites for any significant Lean implementation.
Lean Building Blocks

8 Wastes (Muda) Value-Added vs. Non-Value-Added Value Stream Mapping Autonomation (Jidoka) Total Productive Maintenance Quality at the source, error proofing, poka yoke Continuous Improvement (Kaizen), Teams Cycle Time: for the process, worker, machine One-piece flow (JIT) (batch reduction) Standard work, standard operations Takt time (balance work to customer demand) Work flow, visual control, cell design Pull System (Kanban) Quick Changeover Workplace Organization (5S)
Lean Concepts
Lean Implementation Tools

( All tools use these concepts ) ( VSM form, Tools section pp. 51-52 ) (See bibliography for reference materials, or contact your Master Black Belt) Error Proofing Workshop * Focused Area Improvement Event (Also known as Breakthrough or Kaizan Blitz in Lean literature) *
Kanban materials * Quick Changeover Workshop * Workplace Organization *
* (The Tyco Electronics Six Sigma Organization has Lean workshop and leader materials available on CD and web pages.)
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8 Wastes Value-Added vs. Non-Value-Added:

As material or information flows through a process, at any given moment value is being added or it is not. For a part of the process to be adding value, it must meet all three of these criteria: 1. Physical change or information/decision added 2. Done right the first (and only) time (e.g. only one signature) 3. The customer cares and will pay for it Any work or time in the process when this is not happening is WASTE. The measure for waste is time, and is part of the total process cycle time. The waste can be categorized into one of the following: Eight Wastes
Over-Production making any quantity over or faster than the next process requires, or more than customer demand. Waiting Lot delay and Process delay, storage time. This could be in a warehouse, in-box, or over the weekend. (For total process cycle time, use 24 hours a day / 7 days a week.) Transportation Movement outside a work area, for example: across the plant or across the ocean. Processing Work done that is not value adding or not required by the customer; for example: the time for set-up or administrative work. (Note that some of these may be necessary, but they do not add value and it would be good to reduce or eliminate them.) Inventories Work-in-process beyond JIT requirements, and finished goods inventory beyond customer demand. Motion Movement inside the work area, usually human motion not adding value, for example: getting components, tools, supplies, or packaging materials Defective Products Defects themselves are waste, plus they create additional work such as inspection, rework, repair, and warranty. All are waste from defective products. Unused Creativity People doing work that machines should do and ideas that are not used by the operation. (This is a lost opportunity and not a timed waste.)
In most processes, waste takes up 95% of the time. In highly automated processes, where engineering has improved the value added process, that percent may be higher than 99%.
Non-Value Adding
95%
Value Adding
5%
Our eyes naturally focus on the value adding part of a process: It is boring to look at parts sitting around. So when we look for improvement opportunities, we often dont even see the opportunities from cycle time reduction. This is why some of the recent books and articles on Lean have titles like Learning to See. In this sense, traditional Six Sigma and Lean are two perspectives of improvement methodologies, and only with both lenses can we see and realize all the opportunities.
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Continuous Improvement (Kaizen), Teams

While there are opportunities for improvements from easily achieved, low hanging fruit, Lean should also be looked at as a process of continual improvement. As all of the concepts are inter-related, their combination achieves a synergistic benefit. For example, reducing changeover time makes it possible to reduce lot sizes, which improves inventory, which reduces scrap. So while in addition to focused projects (a Kaizen Blitz), ongoing improvement still needs to happen.
Breakthrough Improvement with Continuous Improvement E x c e l l e n c e

New Standard Continuous Improvement
New Standard
Continuous Improvement
Breakthrough
Time
Teams: In the Lean environment, there is an emphasis on teamwork. Individual effort is also realized, but the benefits of teamwork pay off with many ideas going into the analysis and solution plus, improved long-term implementation. With Six Sigma projects, team involvement is even more critical since the Black Belt will go to other projects, leaving the Control phase to the natural work group and supervision. If they have not been involved, the improvements may not get implemented or standardized.
Cycle Time: for the Process, Workers, Machines

Lean is all about cycle time the time it takes for something to go through a process not the time the work takes since that is only the value added time, which is typically only about 5% of the total process time. To get the baseline performance for Lean, measurement of the cycle time including non-value adding time must be done.
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Note that including non-value adding time is not part of standard Six Sigma process mapping. It is not needed there since the quality tools and statistics are applied to only the value adding steps. But to achieve cycle time improvements, your Lean eyes must be put on to be able to see the waste. There are a several ways to get this data: Calculation of Total Process Cycle Time Detail Process Mapping: Include all non-value added steps into the map. This means that movement, waiting/storage, rework, etc. are included as steps in the flow. Measure the cycle time of each of the steps including the non-value adding steps. Tag an item at the start of the process and see how long it takes to come out the end of the process. (Sometimes the tagged item is lost, so more than one item may be needed.) Look at inventory turns data and extrapolate the cycle time. For example, if inventory turns are 2, you know that on average the material is in the process for six months. Calculation of Worker (s) Cycle time For this measure, we want relatively clean, value-added-only time. It is not useful to have pure value added time since human motion is variable. So, time the work without improvements at the persons normal pace of production. However, do not include any special non-value added time such as going for parts or making storage boxes. (The takt-time formula will compensate for breaks and other normal interruptions.) Do not use average production data: You have to time this with a stopwatch in person. If the person is working with a machine, note any difference in the rates by separating the two types of time. (Note: Be sure to talk to and involve the person being timed. Explain the purpose for the data and the importance of their contribution.) Capture time required per unit of customer demand. Calculation of Machine Cycle time Do not use standard rates. Do not use utilization measures. They often have factors that do not represent true value added time. Time the process with a stopwatch. Use only full up time at the standard speed of the machine. Consider multiple out machines as running at 100%. For this measure, we want full theoretical entitlement. (We may never get there, but we want to start without first compromising the data.) Capture time required per unit of customer demand.
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Formula for Workers Required Number of Workers Required =
e.g.
5 + 10+ 8 sec. 15 sec.
Total of Worker Cycle Times TAKT Time = 1.7 (2) Workers Required
Note the assumption from the data is that there is little waste in the process. Since this is rarely true, the formula indicates a theoretical entitlement. The question remains as to how much waste can be removed and what is the practical number of people needed to do the work. Be aggressive until proven otherwise: It is often possible to meet the theoretical entitlement.
One-Piece Flow (JIT) (Batch Reduction)

The phrase one-piece flow is an ideal like zero defects and six sigma. While it is achievable in some cases, short-term goals may be to reduce batch sizes by some percentage. If a process is not error-proofed or if there are delays in delivery of materials, one-piece flow can stop the process. (We saw this in the dock workers lockout on the USs West Coast in 2002. Toyota had to shut down car production because they had only three days supply in the US.) Batch size usually is an overly cautious contingency to deal with a number of concerns. They include: Long, expensive changeover times BATCH PRODUCTION* Unreliable delivery times VS Scrap in the pipeline ONE-PIECE FLOW Just-in-case thinking
T = 5 hr OPERATION 1
But large batch sizes have a cost in both time and money. This example of 3000 pieces shows a cycle time reduction from 15 hours to 5 hours 12 seconds by sending the materials on to the next process rather than waiting for the whole batch.
T = 5 hr OPERATION 2 T = 5 hr OPERATION 3 CT1 = 15 hr T = 5 hr OPERATION 1 OPERATION 2 OPERATION 3 CT2 = 5 hr, 12 sec *Batch Size = 3,000 pcs t = 6 sec t = 6 sec
CT1 = Cycle Time CT2 = Cycle Time T = Batch Production t = One-Piece Flow
An added benefit is that quality problems would be discovered sooner.
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Larger batch sizes are encouraged by several factors: Changeover times push for longer production runs regardless of customer demand (driven by utilization and recovery measures) There is no other work to do, and we want to use machines and labor (also driven by utilization and recovery measures) Material costs are minimal so large batches dont incur high carrying costs There is no shelf life of the product So at McDonalds we see very few burgers in the finished goods tray, but lumberyards have literally tons of 2 x 4s. Do our batch sizes make business sense? Batch sizes should be calculated, not just allowed to happen.
Pull System (Kanban)

Traditional production management is a push system where customer orders are pushed through the various processes. This is the case in job shops where production varies to meet actual orders. This system was adopted by businesses using forecasts (guesses about customer orders) and translated into factory orders. These orders usually have large batch sizes for the reasons mentioned above. When we guess right, we have what the customer wants. When we guess wrong, we have excess Work-In-Process and Finished Goods inventory and sometimes we have to write off and scrap that inventory. And in other cases, we dont have time to make real orders because we are filling a factory order. (This explains high utilization, high inventory, but low delivery performance: We are making the wrong things.) The pull system turns that process around. Customers pull from stock, and that becomes the signal (kanban) for the preceding process to make more of that part. This cascades into upstream activities to replenish all the work areas. Kanban levels are set carefully to consider variations in customer demand, replenishment times, and variations in supply chain reliability. Examples of effective kanbans can be seen in grocery stores and fast food restaurants. A classic example was home milk delivery where the empty milk bottle was the signal (kanban) to leave more. Factory kanbans may use the empty container as the signal to make more. Conflict with electronic materials systems: Lean favors Visual Controls over remote, computer control. With an effective kanban system, the computer does not see some shopfloor transactions, and inventory will fluctuate within the limits of the kanbans minimum and maximum levels. There are several solutions for Lean and computerized systems to work together, and they have been implemented very effectively. Computers manage the macro system demand, and kanbans control selected shop-floor inventories. The two systems working together are better than either one separately.
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KANBAN CALCULATION Daily Output X (Lead Time + Buffer Stock) Container Capacity
Number of Kanbans =
Quality at the Source, Error Proofing, (Poka Yoke)

Quality at the Source means that processes are kept in statistical control, and/or the process is error proofed so that mistakes cannot happen. 100% inspection by people is minimized or eliminated in favor of autonomation where machines do the work through detectors, vision systems, and other similar devices. Quality Feedback Cycle: All inspection is done at the source rather than later and off line from the process. This assures a quick feedback loop so if defects do occur; the amount of scrap produced is minimal.
Quick Changeover
Long changeover times have caused the need for long production runs, and are themselves waste and targets for Lean improvements. Some changeovers may take days, and with the application of process and tooling improvements, can be reduced to minutes. The Lean goal is Single Minute changeovers, thus the project names of SMED and SMEM (Single Minute Exchange of Dies or Molds). Set-in and Adjust are the two major components of changeover. Adjust time is typically the problem, taking as much as 90% of the changeover time. For this reason, the changeover times have goals expressed as Good Part to Good Part. Most of the time, savings can be accomplished without any costs. 50% of the time wasted is usually eliminated with planning, organization, and layout. Additional time savings that do involve some investment can be achieved by tooling modifications such as quick disconnects and standard mounting plates.
Standard Work, Standard Operations

With regard to human effort within a work process, the standard for Lean is: consistent performance, prescribed methods, and no waste. Following the best techniques is mandatory. The work is engineered to eliminate wasted effort with a streamlined layout and ergonomic ease. (See Workplace Organization)
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Takt Time (Balance Work to Customer Demand)

Takt is from German taktgeber (time giver or clock), meaning in this context the time or rhythm of customer demand. The takt time calculation is the frequency, spread throughout a day, at which the customer wants a product. So a takt time of 15 seconds is a customer demand on average of every 15 seconds. The formula for takt time is based on scheduled production time, so it could be just one shift, or based on 24/7. If the customer part has multiple parts (20 contacts/connector), the takt time is for that number of contacts. It is time per piece: Note that this is the inverse of the usually expressed production rate which is parts per time period ( 35 connectors per minute, etc.)
TAKT TIME
TAKT Time = Total Daily Operating Time Total Daily Requirement 60 sec x 60 min x 7.5 hrs x 2 shifts TAKT Time = 3,000 pieces TAKT Time = 54,000 sec. 3,000
= 18 sec
TAKT Time is the rate at which the customer buys the product, one part every 18 seconds.
Takt time is used to spread production resources and allocate machines and labor in the most effective manner. The chart below compares operator cycle time to the takt time.
Operator Cycle Time

50 40 30 20 10 0 Op #1 Op #2 Op #3 Op #4 Op #5 Total
Seconds
TAKT Time
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Total Productive Maintenance

TPM is an advanced Lean technique that goes beyond well-developed Preventive Maintenance. TPMs measures are based on total available up time, so are linked to yield. TPM would be used when yield is already high, and a team wants to work on the remaining small percentage. (TPM was developed by the airline industry to reduce accidents and is responsible for their 7 Sigma performance level.)
Value Stream Mapping

A Value Stream Map is a special type of process map that includes Lean symbols, a beforeand-after map at the macro level, project measures, and team membership. The map includes key Lean indicators for the major process steps, including: Cycle Time Inventory Yield (throughput) Changeover time
Work flow, Visual Control, Cell Design

Some of the most dramatic improvements using Lean strategies involve changes in the work flow. Both manufacturing and transactional work can be improved by a combination of process step elimination and cell design. USAA (Insurance) is often cited as a good example of Lean in a transactional (administrative) process. USAA has a paperless internal work process, and calls are handled without routing to various departments for decisions: Customer service increases as costs are reduced. Visual Control adds the placement of all tooling, parts, inventory, other workers, and information so that everyone involved in production can understand the system at a glance. When wasted effort is eliminated and work is balanced in a cell, it is often possible for the work to be done easier by fewer people. (To help the team think creatively, ask the workers how things would have to be arranged so they could do their jobs with bungee cords tied around their ankles.)
U-SHAPED CELL
IN OUT
BEST WORKER UTILIZATION
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Workplace Organization (WPO) (5 S) (6 Ts)

What appears to be a simple concept organizing the workplace has profound effects on productivity and performance. With the motto of A place for everything, and everything in its place, Workplace Organization (WPO) is a powerful and inexpensive way to start Lean implementation. WPO is also part of the Focused Area Improvement Event. WPO is sometimes referred to as 5S, from five Japanese words for organizing the workplace: Japanese 5 S Seiri Seiton Seiso Seiketsu Shitsuke 5 S Translation Organization Orderliness Cleaning up Cleanliness Discipline Tyco Electronics 6 Ts (tools) Proper arrangement Orderliness Clean up Cleanliness Discipline Safety
Bibliography: Imai, Masaaki Kaizen. New York: Random House, 1986 Kobayashi, Iwao 20 Keys to Workplace Improvement. Cambridge, Ma: Productivity Press, 1990 Ohno, Taiichi Toyota Production System. Cambridge, Ma: Productivity Press, 1988 Ohno, Taiichi Workplace Management. Cambridge, Ma: Productivity Press, 1988. Rother, Mike and Shook, James Learning To See. Cambridge, Ma. Lean Enterprises Inst, 1999. Schonberger, Richard J. World Class Manufacturing. New York: The Free Press, 1986 Sekine, Kenichi and Arai, Keisuke TPM (Total Productive Maintenance) for the Lean Factory. Cambridge, Ma: Productivity Press, 2002 Tapping, Don et.al. Value Stream Management . Cambridge, Ma: Productivity Press, 2002 Womack, James P et. al. The Machine that Changed the World. New York: HarperCollins, 1990
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LEAN STRATEGIES
LEAN TOOLS - LINKAGE TO BUSINESS OBJECTIVES

CONCEPTS Introduction to LEAN Cycle Time Reduction Workshop Black Belt Review Meetings LEAN Treasure Hunt (Assessment) PROBLEM-SOLVING / PROCESS REDESIGN Order Fulfillment Process Focused Area Improvement Event *
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Transactional Process Re-design
Workplace Organization
Standard Workflow Production
BUSINESS OBJECTIVE
FINANCIAL Work-In-Process Inventory Floor Space Price Erosion Finished-Goods Inventory Cash Flow EBIT Equipment Utilization * Increase Capacity Resource Inventory Write-Off Productivity Performance Overhead Cost Indirect Manufacturing Cost QUALITY Administrative Errors Product Quality Customer Returns SERVICE Response to Customer Change Order Increase Manufacturing Flexibility Delivery Performance FINANCIAL/QUALITY/SERVICE Continuous Improvement Supplier/Cost Delivery/Service/Quality
9/17/2002 LEAN Tools Matrix
Total Productive Maintenance
* Some measures may be negatively affected by LEAN strategies such as earned hours and utilization (recovery). This is due to the Just-In-Time principle that says equipment should not be run when no real orders exist. LEAN would reward the factory for freeing up excess capacity, not using it.
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Factory Breakthrough
Quick Changeover
Error-Proofing
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TOOLS FOR COLLECTING, ANALYZING AND DISPLAYING DATA
TOOLS FOR COLLECTING, ANALYZING AND DISPLAYING DATA -- TABLE OF CONTENTS:
Tools for Collecting, Analyzing and Displaying Data Checksheets ........................................................................................2 Interviewing..........................................................................................4 Surveying .............................................................................................6 Force Field Analysis.............................................................................8 Cause-And-Effect Diagrams (Fishbone) ............................................10 Pie Charts ..........................................................................................12 Run Charts.........................................................................................14 Pareto Analysis ..................................................................................16 5 Why Analysis ..................................................................................18 Histograms.........................................................................................20 Cost-Benefit Analysis.........................................................................22 Tools for Generating Ideas Brainstorming.....................................................................................26 Brainwriting ........................................................................................28 Tools for Reaching Consensus/Making Decisions List Reduction ....................................................................................32 Criteria Rating Forms.........................................................................36 Balance Sheets..................................................................................40 Weighted Voting.................................................................................41 Paired Comparisons ..........................................................................42 Tools for Documenting Processes/Planning Actions Flowcharts..........................................................................................44 Gantt Charts.......................................................................................46 Program Evaluation and Review Technique (PERT) Charts .............48 Value Stream Map .............................................................................49
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Tools for Collecting, Analyzing and Displaying Data
Table of Contents Page Checksheets ........................................................................................2 Interviewing..........................................................................................4 Surveying .............................................................................................6 Force Field Analysis.............................................................................8 Cause-And-Effect Diagrams (Fishbone) ............................................10 Pie Charts ..........................................................................................12 Run Charts.........................................................................................14 Pareto Analysis ..................................................................................16 5 WHY Analysis .................................................................................18 Histograms.........................................................................................20 Cost-Benefit Analysis.........................................................................22
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Collecting Information: Checksheets

A B C 1 III I 2 II IIIl 3 IIIl l What checksheets are Data must be collected carefully and accurately. Using checksheets makes it easy to compile, and then to analyze data. Checksheets are used to determine how often an event occurs over a designated period of time. Information is usually collected for events as they happen; less frequently, checksheets are used for recording events that have already occurred. Although the purpose of a checksheet is to tracknot analyzedata, checksheets often help to indicate what the problem is. Many kinds of data can be tracked using checksheets: Number of times something happens Length of time it takes to get something done Cost of a certain operation over a period of time Frequency of occurrence by plant, department, team, machine, etc. Impact of an action over a period of time
What checksheets look like The next page shows a checksheet prepared by the Subsolvers, a problem solving team. Team members used this checksheet to track miswires and electrical failures of the interface and module assemblies.
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Header Area
Purpose: Date: Operator:
CHECKSHEETS FOR MISWIRES AND ELECTRICAL FAILURES Time: Station: Location: Method:
Defects
Defective wiring in line filter Miswired at line filter
Jan
/
Feb
/
Mar
// //
Apr
/
May
////// / /// ////
Jun
// //
Jul
/ //// /
Aug
Sep
//////
Oct
////////// ///
Total
33 9
Tally Area
Miswired at circuit breaker Convenience outlet miswired Damaged wires Ground wire not connected Miswire at GFI Total
/// // /
////
///////// ////////
23 20 1
///
///
// // 2 4 10 1 17 7 9 0 / 11 /// 33
2 6 94
Remarks Area
How to use checksheets There are two questions that must be answered to set up a checksheet. What do you want to know? What is the most effective way to collect the data? Information on checksheets is usually collected in categories: by plant, by product code, by date, by shift. In constructing checksheets, try to form categories that will be easy for the person recording the data to use. The data recorder should not have to make difficult judgments about when and where to "check" a box on the form.
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Collecting Information: Interviewing

What interviewing is
Interviewing is a structured technique for collecting information from individuals or groups. If you have access to the people who have the information you need, interviewing (either in person or on the telephone) can be a very efficient means of data collection.
What an interview protocol looks like

The list of questions to be asked in an interview is referred to as an interview protocol or interview schedule. Below is the interview protocol used by the group responsible for developing training for first-line managers. Several members interviewed senior managers to collect information about the topics and skills to be included in the training.
SENIOR MANAGEMENT INTERVIEW PROTOCOL 1. Have you had the opportunity to work with any managers that you would consider excellent managers? If yes, what skills did you observe them using that distinguished them from other managers? If no, what skills would you expect excellent managers to use that would distinguish them from other managers? 2. How do you think managers learn these skills? 3. What do you think is the most difficult problem that managers have to handle? Do you think most managers have the skills to handle that kind of problem? 4. What skills do you think managers can best learn in training programs? 5. What informational topics do you think should be taught in management training courses? 6. What do you think is the biggest challenge that managers will have to face in the next 5 years?
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How to interview
Tackle this just as a reporter would: Before the interview, develop a list of questions. Note that there may be both open-ended and closed-ended questions. Question 1 on the previous page has a combination of both open and closed-ended questions. Closed-ended questions yield quick, specific answers and are useful when you know what the key issues are. (What was your budget variance last year?) Open-ended questions are useful when you want the interviewees opinion as to what the issues are. (What are our critical budget and control issues for next fiscal year?) Be sure to include follow-up questions to get at the information you really need. When you conduct the interview, write down the responses. Verify your understanding of the interviewee's responses.
Although the primary skill used in interviewing is questioning, don't overlook the importance of testing understanding to ensure that you have clearly understood what the respondent is saying. If you are collecting sensitive information, you may want to ensure the confidentiality of the respondents. In that case, do not use respondents' names, identifiable quotes, or other information.
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Collecting Information: Surveying

What surveying is
Surveying is interviewing on paper. Instead of responding to an interviewer, people answer items on a questionnaire. The major advantage is that you can get a great deal of information from a lot of people very economically. The disadvantage is that people may interpret the questions somewhat differently than intended, their answers may be ambiguous and there is no opportunity to test understanding.
What surveys look like

Here is a copy of the survey questionnaire used by the Charioteers. The purpose of the survey was to test reactions to a proposed combination of Petty Cash and the Weekly Expense Vouchers.
COMBINED PETTY CASH / WEEKLY EXPENSE VOUCHER Please take a minute to answer the following questions about the proposed form and leave the questionnaire on the table in the back room upon your departure. If there is an area of concern that has not been covered, please let us know. Thanks for your time and valued input. 1. Do you like the concept of combining Petty Cash and Weekly Expense Voucher on one form? 2. Do you feel you would have occasion to use both sections of the combined form for one transaction? 3. Do you like the uniform heading and signature area? 4. Do you like the uniform size of this combined form? 5. Do you feel there is an advantage with this uniform size combination for filing purposes and a time saver in not having to make a copy? 6. Do you like the idea of a total mileage concept vs. listing separate trips for local travel? 7. How much time do you feel this new form will save you on a monthly basis? COMMENTS: YES ____ NO ____ YES ____ NO ____ YES ____ NO ____ YES ____ NO ____ YES ____ NO ____ YES ____ NO ____ ________________
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How to survey
Identify the information you need. Decide who has this information in its most reliable form. Plan how you will use the information when you have it in hand. Develop a series of questions that will enable respondents to provide the information accurately and unambiguously. Keep the questionnaire short, simple, and clear.
Try out the questions with several people to uncover any unclear questions. Questions can be "closed," with a limited number of responses from which to choose: How long have you worked in your present job? __ less than 1 yr. __ 1-3 yrs. __ more than 3 yrs. Or they can be "open": How do you use the information contained in the monthly progress report?
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Displaying Data: Force-Field Analysis

What force-field analysis is
Helping Hindering
Developed by the social scientist Kurt Lewin, force-field analysis identifies those forces that both help and hinder you from closing the gap between where you are now ("as is") and where you want to be ("desired state").
What force-field analysis looks like

As is Desired State
Below is a force-field analysis completed by a group working on the problem "Morale in this department is low."
FORCE-FIELD ANALYSIS
AS IS Morale in this department is low . DESIRED STATE: Department members rate morale as 4 or higher in an internal survey.
Helping
Good pay and conditions
Hindering
Inconsistent recognition
1
Team approach to work within the department
2
Lack of reviews
2
Reward and recognition as part of management training
1
No pre-management development
2
Problem solving teams established
1
Managers not involved in problem solving
Lengths of arrows show relative impact: 1 = weak 2 = low 3 = medium 4 = strong 5 = very strong
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How to use force-field analysis

Draw a line down the center of a flip chart page. This represents the "as-is" situationwhat currently exists. This should correspond to your statement of the problem. At the right edge of the sheet, draw a second vertical line parallel to the first. This represents the situation as it should bethe desired state. Using one or more of the tools for collecting and generating information, identify and list the helping forces to the left of the center line and the hindering forces to the right of the center line. The opposing forces are not necessarily "paired".
These "forces" are often shown as arrows. The helping forces are pushing toward the "desired state," and the hindering forces are pushing away from it. It's often helpful to assess the relative strengths of both helping and hindering forces. Some groups use a scale (e.g., 5 -- very strong, 4 = strong, 3 = medium, 2 = low, 1 = weak) to evaluate the relative impact of the forces. For graphic representation, proportionately sized arrows show relative strengths. To move closer to the desired state: Increase the number or strength of the helping forces. Decrease the number or strength of the hindering forces. (This often-forgotten strategy is a key feature of the Force-Field model. Its easy to think of additional helping forces (more programs), but not take into account the sometimes very strong forces in the way of implementation. Often the only needed action is to remove a significant restraining force!)
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Displaying Data: Cause-and-Effect Diagrams (Fishbones)

What cause-and-effect diagrams are
Cause-and-Effect Diagrams are also known as Ishikawa Diagrams, after Dr. Kaoru Ishikawa, or Fishbone diagrams because of the familiar fish skeleton look of the completed figure. The diagram is a visual summary of the analysis of the factors (causes) that result in a particular effect. In quality improvement terms the effect is a quality characteristic that is not meeting expectations. The causes or factors provide an explanation of the dispersion seen in that characteristic. The factors selected and their grouping will differ based on the type of process, problem, and effect being investigated.
What cause-and-effect diagrams look like

The effect (the nose of the fish) is often stated as the problem or the "as is" state you want to correct. (Less often the effect can be the "desired state or what you want to exist when the problem has been solved.) Here, the "as is" state for the problem "Lamp does not light," is placed at the nose of the diagram (Fish). The bones of the fish are drawn to show the factors that have been identified as possible causes of the undesirable condition. The team might have generated this list using brainstorming, a checksheet, or through other data-gathering tools. The team will next use a consensus building tool to identify the most probable causes. They can then direct their efforts to further data collection to verify the correctness of their selections.
FISHBONE (Ishikawa Diagram)

Power Bulb
Storm Loose Power outage Circuit breaker No house power Unpaid bill Not plugged in Chewed by mouse Cord cut Vandal Careless cleaning Power plant failure Missing Wall switch turned off Bulb snatcher Old Burned out Broken
Lamp does not light

Switch broken
Switch missing No contact
Plug/cord
Lamp
Corroded
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How to use a Cause-and-Effect Diagram

Decide on the effect to be analyzed and write it on the right end of a board or large sheet of paper. This will be the head of your diagram (Fishbone). Draw a horizontal line across the page. This will be your main arrow to add factors (causes) to. Your team can choose from several different methods to label the connecting arrows:
a. Dispersion: This method assumes that analysis of the dispersion, or variation, of generic factors will
lead to identification of causes for the subject effect. These factors differ by type of problem. Typical factors for technical problems are: - Machinery* - Methods* - Environment (Mother Nature)* - People (Man)* - Materials* - Information systems - Measurement - Training - Organization * Called the 5 M's, these are often used as a set. For sales problems, the factors could be People, Product, Price, Place and Promotion. For administrative problems, the factors could be Policy, Procedure, People, and Plant.
b. Components: This method is useful when a number of parts or "components" make up the whole.
For example, the factors causing a lamp not turning on could be due to the bulb, cord, lamp, or plug. Another form of the component-based analysis is the listing of the components or steps in a process. In this case the main arrow would be labeled with the components of the process with the sub-causes listed below.
c. Group generated categories: This method is pursued by having the team brainstorm or list all
possible causes without any consideration of categorizing them. Then, using combining, the list is grouped into "buckets" that can be labeled based on the individual items included. Now the group begins to fill in the causes with sub-causes branching off the main stems. This can be brainstorming or the result of a data collection process. In each case, the question asked to generate the next level of cause is, "Why does this cause occur?" In sequence, keep repeating this question until there are no more identifiable cause factors. This can be remembered by the phrase, "Ask Why five times". This means to pursue the identification of causes and sub-causes until you have asked the question "Why does this occur?" for every initially identified causal factor until you have exhausted all logical answers. Once a complete enumeration of all possible causes is developed, ensure that all listed factors are stated as a cause of the effect. (Corrective action/solution ideas can emerge and they would not be appropriate here.) The team must begin a careful and thorough analysis to validate which factors are actually causing the effect. "Probable causes" can be a theme that appears in more than one category. Probable causes may also be identified based on group member experience. This requires selection of those "probable causes" which deserve close scrutiny. This process can begin using list reduction or other consensus building tools. The Fishbone should remain "alive", meaning it should be constantly updated and revised as new information is learned.
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Displaying Data: Pie Charts
What pie charts are

Pie charts are used to show the relationship of each part to the whole how each part contributes to the total product or process. Pie charts are useful when it is important to show the relationship of various parts to each other, and to the whole. They are easily interpreted and can present data effectively and efficiently.
82%
What a pie chart looks like

Shown is a pie chart prepared by the Charioteers, a problem solving team. This chart indicates the type of forms processed by Forms Administration for a specific period of time.
FORMS PROCESSED IN 1999

34.00% 2.30% 9.10% Other Petty Cash Travel Advance Local Travel Business Travel
22.60% 32.00%
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How to make a pie chart

By far the easiest way to create a chart is to use the features in commonly used software packages such as Microsoft Excel. If it must be done manually, follow these guidelines: The 360 degrees of the circle, or pie, represent the total or 100%. The pie is divided into "slices" proportionate to each component's percentage of the whole. For each "slice" of the pie, calculate the size of the angle by multiplying the percent by 360 (e.g., 20% x 3600 = 720). Using a protractor, mark off the angle at the center of the pie. Alternatively, divide the pie into equal slices and use this division to guide your percentage allocations. There are geographic differences in the placement of the largest wedge. In the U.S., the largest category starts at 12 o'clock with smaller categories displayed clockwise. Shadings or hatchings can further clarify the pie chart, though mixing too many patterns can give the graphic a "crazy quilt" look. When in doubt, keep it simple. Label everything clearly. Add a descriptive title. The typical format is: <Type of Measurement> by <Categories Measured> for <Group Name> for <Observation Time Period>. Include any "legends".
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Displaying Data: Run Charts

What run charts are
Run charts, also known as time charts, display changes in a particular measure over a given period of time. They can help summarize occurrences of a particular situation. Run charts are particularly useful for showing fluctuations (or lack of them) over time. As is the case in most graphic techniques, a chart communicates much more effectively than the table of numbers on which it is based.
What a run chart looks like

This is a run chart constructed by the Dynamic Do-Rites. This run chart tracks the number of hours being charged to downtime for a sevenmonth time frame.
HOURS CHARGED TO DOWNTIME (June to December)

450 400 350 300 250 200 150 100 50 0 Jun Jul Aug Sep Oct Nov Dec Hours
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How to make a run / time chart

The horizontal axis represents time (e.g. months) and the vertical axis indicates a characteristic of interest (e.g., hours) or frequency of occurrence of some event (e.g., defects). The plotted points are usually connected by a solid line. Collect the raw data using a data collection tool such as a checksheet or log. Display time intervals on the horizontal axis. The intervals should be even. Label each interval. Display equal intervals on the vertical axis to the left. The scale is your measure or metric. Label the scales and the individual intervals (e.g., 300 hours, 200 pounds, 60 defects, etc.). Plot one data point for each time period. Connect the points with a line. Add a title that defines the measurement and over what period of time the data was collected.
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Analyzing and Displaying Data: Pareto Analysis

PARETO ANALYSIS OF OPTICAL FAILURES
50 45 40 F r e q u e n c y 35 30 25 20 15 10 5 0
Mi sa dj us tm en Mi si ns tal lat io MI sfi xi ng Pa rts la ck in g Mi sc ell an eo us
100% 92% 80% 66% 50%
What a Pareto Analysis is

Pareto analysis is a frequency distribution technique that separates the "vital few" from the "trivial many." Named for Vilfredo Pareto, a 19th century economist who did work with income and other unequal distributions, a Pareto analysis is designed to point out inequalities. The familiar 80-20 rule ("Eighty percent of our business comes from twenty percent of our customers") is an example of Pareto analysis. The basic concept behind Pareto analysis involves the ranking of data, usually presented in a Pareto diagram. Like a histogram (or bar graph), a Pareto analysis shows a distribution. The bars, however, are arranged in descending order. Pareto charts are used with a cumulative line. When cumulative lines are used, they represent the percentage sum of the vertical bars, as if they were stacked on each other going from left to right.
What a Pareto chart looks like

The next page shows a Pareto analysis prepared by a team who assembles optical systems. From this chart we see that "mis-adjustment" is the cause of 50% of the observed optical failures. Note that the final bar is a combination of other "miscellaneous" causes; therefore it is possible that the sum of these miscellaneous causes could be larger than the cause on the right.
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PARETO ANALYSIS OF OPTICAL FAILURES

50 45 40 35 30 25 20 15 10 5 0 100% 92% 80% 66% 50%
F r e q u e n c y
How to make a Pareto chart

Use a checksheet to collect the required data. Arrange the data in order from largest category to the smallest. Calculate the total. Compute the percent of the total that each category represents. Compute the cumulative percent. Draw horizontal and vertical axes on graph paper. Scale the vertical axis for frequency (0 to total calculated above). Working from left to right, draw a bar for each category, with height indicating the frequency. Start with the largest category and add them in descending order. Draw a vertical scale on the right of the graph, and add percent scale (0% to 100%). Plot the cumulative percent line (e.g., mis-adjustment (50%) pIus mis-installation (15%) is equal to 5% of all failures).
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Analyzing and Displaying Data: 5 WHY Analysis

Description of the 5 WHY Analysis
The 5 WHY diagram helps to identify the root cause of a problem. Additionally, the diagram helps the team to recognize a wide range of possible causes for a problem and relationship between these causes. It can be used by the team when: A root cause for a problem needs to be probed. There are many potential contributing causes for a problem. A graphical communication tool would assist in understanding of the possible causes for a problem.
How to prepare a 5 WHY chart

Materials required include a flip chart, post it notes and markers (or a computer generated 5 WHY Analysis template). Define the problem as a gap statement by comparing the as is state with the desired state. Brainstorm why this problem has or could occur; record the causes on the post it notes. Each of these possible cause statements now become a new problem statement. Place them onto a flipchart in a column immediately to the right of the initial problem statement. For each of these new problem statements, ask WHY again. It may be helpful to phrase the question Why does this situation allow or cause the problem to occur?. Show the relationship between these statements with arrows. Continue with this analysis until you have asked WHY 5 times or until you have reached a plausible root cause.
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SAMPLE 5 WHY ANALYSIS
Define Problem Use this path for the specific nonconformance being investigated
Root Causes
WHY?
Use this path to investigate why the problem was not detected. Detection .
WHY?
WHY?
WHY?
.
WHY?
Use this path to investigate the systemic root cause System
WHY?
WHY?
WHY?
WHY?
Ref. No. (Spill, PR/R)
WHY?
Date of Spill
WHY?
Product / Process
Customer Location
Content Latest Rev Date
WHY?
Problem Resolution Complete
Communicate to Customer Date:
Process Change Break Point Date:
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Displaying Data: Histograms

Histogram
60 50 40 30 20 10 0
10.1 - 12.5 20.1 - 22.5 0 - 2.5
What a histogram is
A histogram shows the distribution of a characteristic. Because of its immediate visual impact, a histogram is more effective for displaying data than a checksheet or frequency table.
Frequencey
What a histogram looks like

The next page shows a frequency table and a histogram for the distribution of distances employees commute to work.
Miles
How to construct a histogram

Collect data on a measure of a single characteristic (e.g., miles commuting to work) If the data are not already arranged by frequency, make a frequency table. Select cells which divide the data equally over 10-1 5 cells. Draw vertical and horizontal axes on graph paper. Mark data values along the horizontal axis, from the smallest to the largest. Label the axis to indicate what is included in each cell, and the unit of measurement (e.g., 0 to 2.5 miles). Label the vertical axis "Frequency," and mark values. Using the information in the frequency distribution table, construct vertical bars for each of the values, with height corresponding to frequency.
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EMPLOYEE COMMUTING DISTANCE (Frequency Table) Distance (Miles) 0 - 2.5 2.6 - 5.0 5.1 - 7.5 7.6 - 10.0 10.1 - 12.5 12.6 - 15.0 15.1 - 17.5 17.6 - 20.0 20.1 - 22.5 22.6 - 25.0 25.1 and over TOTAL Frequencies (Number of Employees) 2 8 34 56 50 36 26 12 10 4 2 240
(Distance measured to the nearest 1/10 mile)
Employee Commuting Distance

60 50 40 Frequency 30 20 10 0
0 - 2.5 2.6 - 5.0 5.1 - 7.5 7.6 - 10.0 10.1 - 12.5 12.6 - 15.0 15.1 - 17.5 17.6 - 20.0 20.1 - 22.5 22.6 - 25.0 25.1 and over
Miles one-way
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Analyzing Data: Cost-Benefit Analysis

What cost-benefit analysis is
Cost-benefit analysis enables a team to estimate the real cost and benefits for alternatives under consideration. It facilitates choosing alternatives by making comparisons and uncovers costs and benefits that are not evident.
How to do cost-benefit analysis

The analysis involves calculating or estimating the known costs and potential benefits associated with the proposed solution. This often requires making assumptions (e.g., that the proposed corrective action/solution will result in a 25% improvement in productivity). Some corrective actions/solutions are relatively easy to evaluate using a cost- benefit analysis. Others don't lend themselves to evaluation on the basis of cost and the dollar value of benefits. For those "softer" corrective actions/solutions, it may be helpful to ask (and answer) two questions simultaneously: "What do I give?" and "What do I get?"
What a cost-benefit analysis looks like

A problem solving team used a cost-benefit analysis to find out if the purchase of a new piece of equipment costing $1000 was practical. They did a cost-benefit analysis considering all the costs associated with getting the new equipment up-and-running, to find out if the proposed corrective action/solution was cost effective. Their work is shown on the next page.
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SAMPLE COST-BENEFIT ANALYSIS Costs Machine Rewiring & installation Cost of retraining operator Cost of lost production Total Cost Benefits - Year 1 and ongoing Reduce rejects by 10% Reduce man-hours for the job Reduce start-up time Total Benefits $ 750 500 250 $1,500 $1,000 500 250 500 $2,250
Comparing the costs and benefits over two years shows: Costs Year 1 Year 2 Total $2,250 $2,250 Benefits $1,500 1,500 $3,000 Profit ($750) 1,500 $750
In two years, the new equipment will pay back its original cost and generate additional income.
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TOOLS FOR DOCUMENTING PROCESSES/PLANNING ACTIONS
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Tools for Generating Ideas
Table of Contents Page Brainstorming.................................................................................. 26 Brainwriting ..................................................................................... 28
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Brainstorming
What brainstorming is
Brainstorming is an idea-generating technique pioneered by Alex Osborn, an advertising executive. People in a group voice their ideas as they think of them so that each has the opportunity to build on the ideas of others. The discipline of brainstorming is maintained by four basic rules. These rules are: No Evaluation Encourage Wild Ideas Hitchhike - Build on the Ideas of Others Strive for Quantity
What brainstorming looks like

Here is an example showing the list of problems brainstormed by Bob's team, a group of inspectors, material handlers, and assemblers, in a cable assembly production area. Perceived Problems 1. Lack of work available 2. Inadequate work tables 3. Material flow on 8-inch line 4. Bad lighting 5. Lack of incoming quality control 6. Process out of date 7. Lack of safety precautions 8. Lack of crossover at 8-inch line 9. Station 5 wire cutting layout 10. Defect rate on 8-inch line
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How to brainstorm
The group leader presents the topic for which ideas are sought. The wording should encourage specific, tangible ideas, not abstract ideas or opinions. The leader makes sure that the members understand the topic, the objective, and the process to be followed. There are three methods of brainstorming. The most familiar is "freewheeling," where: Group members call out their ideas spontaneously. The scribe records the ideas on a flip chart as they are suggested.
In "round-robin" brainstorming: The leader or scribe asks each member, in turn, for an idea. Members may pass on any round. The session continues until all members have passed during the round. Ideas are recorded as in freewheeling.
The "slip method" differs markedly from the other two approaches. The leader asks members to write down their ideas on small slips of paper or index-cards. The ideas are then collected and recorded on a flip chart.
Each approach has its advantages and disadvantages. These are summarized below. Regardless of the approach used, the output of the brainstorming session must be reviewed and evaluated using such tools as list reduction and weighted voting.
BALANCE SHEET ON BRAINSTORMING APPROACHES + (Advantages) Freewheeling Very spontaneous Tends to be creative Easy to build on others' ideas Difficult for one individual to dominate Discussion tends to be more focused than other approaches Everyone is encouraged to take part Anonymity allows sensitive topics to surface Can be used with very large groups Not necessary to speak out Strong individuals may dominate the session Confusion sets in Ideas may be lost when too many talk at once Difficult to wait one's turn Some loss of energy Reluctance to pass Not as easy to build on others' ideas Not possible to build on others ideas Slow pace Difficult to clarify ideas - (Disadvantages)
Round Robin
Slip Method
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Brainwriting
What brainwriting is
Brainwriting is an idea-generating technique that combines features of the various approaches to brainstorming. As in the slip method, participants record their own ideas. Like freewheeling and round-robin, brainwriting gives participants the opportunity to build on others' ideas. Compared to brainstorming, brainwriting tends to result in somewhat fewer, but more fully developed, ideas. How to use brainwriting In the most common approach to brainwriting, participants sit around a table and each writes their ideas on a sheet of paper. Members then place the papers in the center of the table to exchange their own with someone else's. By examining the others' ideas, participants try to build on them or come up with entirely new approaches. After an agreedupon time period the papers are collected. Ideas can be clarified and evaluated at that time or later. As a variation, some groups use large index cards, writing a single idea on each. Cards are then passed to the person to the right to stimulate modifications or new ideas. A third approach, sometimes referred to as the "gallery method," involves posting several flipcharts (at least two per participant) around the room. Each member writes his or her ideas on the sheets for 20 to 30 minutes. Participants then walk around the room for 10 to 15 minutes, reading the ideas recorded by others. For the final 20 minutes or so, members return to their sheets to continue writing, stimulated by and building on others' ideas.
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When to use brainwriting

Like brainstorming, brainwriting is a powerful tool for both the 8D and 7-Step processes. There are several situations, however, where brainwriting may offer clear advantages over brainstorming: When it's important to get more carefully thought-out ideas The very act of writing down one's ideas encourages people to think them through, to express them more clearly and completely. If previous brainstorming sessions have been monopolized by one or two dominant members Brainwriting provides everyone equal time to think and write and it virtually eliminates pressure toward group conformity. If the group tends to socialize too much Brainwriting provides a very strong task orientation that some groups may need to keep them focused. If there is strong conflict within the group, or if the topic is highly controversial Although conflict can be beneficial to a group, it must be carefully managed by the leader or facilitator. Brainwriting can be successful in tense, highly charged situations where brainstorming may not be manageable.
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How to improve the group's use of brainstorming and brainwriting

Idea-spurring" questions include: Can we combine or meld ideas? Purposes? How can we adapt or modify what you're currently doing or using? Can you find new ways to use old ideas? Can you make it larger? Smaller? Can you eliminate parts? Add parts? Can you delay it? Speed it up? Can you do it in a different order or sequence? Can you put it someplace else? Can you do it more often? Less often? Can you borrow from other corrective actions, solutions, or processes?
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Tools for Reaching Consensus / Making Decisions

Table of Contents Page List Reduction ..........................................................................................32 Criteria Rating Forms...............................................................................36 Balance Sheets........................................................................................40 Weighted Voting.......................................................................................41 Paired Comparisons ................................................................................42
Definition of Consensus I believe you understand my point of view. I believe I understand your point of view. Whether or not I prefer this decision, I will support it because it was reached openly and fairly.
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List Reduction
What list reduction is
List reduction is a systematic way of processing the output of a brainstorming session. The objective of list reduction is to clarify, combine, and reduce a large number of options into a manageable number. Then tools such as weighted voting or criteria rating forms can be used to help you make your final selection.
What list reduction looks like

Here is an example showing how Bob's Team in Harrisburg reduced its brainstormed list of potential problems. Team members first identified and ranked their team project goals: 1. Does this problem lend itself to being solved by our team? 2. Is the problem within our control? 3. Is it worth solving? Using these general criteria, team members voted and reduced the list of ten to four (the items not bracketed). This was done by simple majority vote. Next, like items were combined, and since their list, was now less than the target of six, they were ready to apply another quality tool to prioritize and select their problem. If Bob's team had more than six items still on their list, they would have applied additional criteria, e.g., impact on quality, timeliness, or cost. Potential Problems [Lack of work available] [Inadequate work tables] Material flow on 8-inch line [Bad lighting] Lack of incoming quality control Process out of date [Lack of safety precautions] [Lack of crossover at 8-inch line] [Station 5 wire cutting] Defect rate on 8-inch line
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How to use list reduction

Step 1: Share Opinions Using Reacting verbal behaviors only, the group shares opinions on On Benefits and Drawbacks the benefits and drawbacks (advantages and disadvantages) of the various options. The diversity of opinions allows the group to more completely examine and understand the relative merits of each option. Input is limited to opinion giving only, no debate is allowed. Further clarity may be produced by this exercise. Step 2: Identify Filtering Then the group identifies some "filters." These are general criteria Criteria that the group feels should be satisfied for an item to remain on the list. Some filtering criteria for selecting problems are: Does this problem lend itself to being solved by the group? Is the problem within our control or influence?
Is it worth solving? Some filtering criteria for selecting corrective actions/solutions are: Is it likely to solve the problem? Is it actionable? Is it within our charter? Does this corrective action/solution deserve further consideration?
Step 3: Vote and Remove Keeping the agreed criteria in mind, group members vote on each Brackets item. A simple majority vote keeps an item on the list. Items that don't receive a majority vote are bracketed. Items are bracketed rather than crossed out so that the group can go back to them later if necessary. Humorous or obviously irrelevant items would also be bracketed, with the originator's consent. A new item, or combination of items, may arise and can be added if the group agrees. In addition, a single member may request reconsideration of any bracketed item if they feel strongly that the group should continue to consider it. This is necessary to maintain participation if a valid group consensus is to be reached. Step 4: Combine The items on the reduced list should now be further clarified and combined as appropriate to result in six or fewer specific alternative ideas. The process may be repeated, with different or more stringent criteria, until the list is reduced to a manageable number. A flowchart showing the steps of list reduction combined with final selection process steps is shown on the next page of this guide.
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LIST REDUCTION
Brainstorm list of Ideas
1. Clarify the list Identify pros and cons 2. Identify filtering criteria 3. Voting and removing brackets 4. Combining
Additional or more stringent criteria
No
Six or fewer ideas Yes
Identify the methods and criteria for final selection Apply the methods and criteria, and make final selection Selected idea
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Criteria Rating Forms

What criteria rating forms are
Criteria Options A B Total 5 4 9 3 2 5 1 3 4
Criteria rating forms, also known as Prioritization Matrices, are simply matrix displays of different ideas. The purpose of doing this is to better understand how they compare to each other based on an agreed set of criteria. If you've ever made a major purchase, such as a car or a house, you've probably used a criteria rating form to evaluate each alternative with respect to each of your selection criteria. In buying a car, for example, you would consider such criteria as cost, mileage, comfort, trunk space, and repair record. If you listed these on a sheet of paper and rated (say, on a scale of 1 to 5) the three cars you were considering on each of the factors, you would have constructed a criteria rating form. Adding the scores for each car gives you a relative rating of the cars under consideration. Criteria can be treated equally or they can be weighted relative to each other. Mileage may be three times more important than trunk space and cost may be twice as important as mileage. In that case, the score for cost would be multiplied by 6; likewise, the score for mileage would be multiplied by 3. The scores for each factor are then summed as above.
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What criteria rating forms look like

The example below is a criteria matrix used to select a new vehicle. On page 36 is a blank criteria rating form which can be used to rate alternatives against a set of criteria.
CRITERIA RATING FORM Criteria and Scales Weighting Alternatives Jeep 1.5 x 2 = 3 Sedan 1.5 x 5 = 7.5 Mini-van 1.5 x 2 = 3
weight x rating = weighted rating
Gas mileage 5 4 3 2 1
Great Poor
1.5
Passenger space 5 4 3 2 1
Great Poor
1x1=1
1x2=2
1x5=5
Safety record 5 4 3 2 1
Great Poor
2x2=4
2x4=8
2x3=6
5
Low
Cost 4 3 2 Comfort 4 3 2 Looks 4 3 2
1
High
1x1=1
1x4=4
1x2=2
5
Great
1
Poor
1x3=3
1x3=3
1x2=2
5
Great
1
Poor
.5
.5 x 5 = 2.5
.5 x 2 = 1
.5 x 1 = .5
Total Weighted Rating
14.5
25.5
18.5
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How to use criteria rating forms

Select alternatives (e.g., problem statements, potential corrective actions/solutions, or as in the preceding example, cars). Decide what criteria to use to evaluate the alternatives. Reach agreement on the definition of each criteria.
Determine what, if any, weights should be assigned. Agree on the scale to be used (e.g., 1 to 4 or .5 to 2 in increments of .5) to rate the options. Sometimes scales are reversed to make it easier to compare options. For example, cost is a factor that has a negative impact, so you may want to flip the scale: 5 = low cost, 1 = high cost. Individually rate the options. When working in a group, discuss each "cell" on the form to arrive at a consensus rating. It's best to look at all options (e.g., potential corrective actions/solutions) and rate them on a particular criterion at the same time. The group may determine that corrective action/ solution "C" provides the greatest control. Assigning it the highest value then makes it easier to assign ratings to the other options, relative to corrective action/solution "C". CRITERIA RATING FORM
Criteria and Scales Weighting (if applicable) Alternatives
Total Points
Directions: As a group, identify and define the criteria to be used in evaluating problem statements. Enter the criteria and scales (e.g., 1 = little, 5 great) in the boxes on the left. Write abbreviated statements of alternatives being considered (e.g., "problem topics" or "solutions") in the boxes across the top. Work across, evaluating all alternatives against the first criterion, then the second, and so on. You may decide to assign weighting factors to some criteria. If "control" is critical, you may wish to weight it twice as much as the other factors by multiplying its score by 2 before entering it in the grid.
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Suggested Criteria: Control: The extent to which the group controls the problem and can control the corrective action/solution. Importance: The seriousness or urgency of the problem. Difficulty: A judgment about the relative difficulty of working through the problem to a corrective action/solution. Time: A judgment about the relative length of time it will take to resolve the problem. Return On Investment: The approximate, expected payoff from solving the problem. Resources: The amount of resources required to solve the problem (people, time, money, equipment, etc.).
POINT SCORING IS AN ALTERNATIVE RATING SYSTEM POINT-SCORING EVALUATION OF FOUR HOUSES IN OAKDALE Max Points 142 Elm 64 Ridge 29 Center Location Distance to work Cost Easy maintenance Floor plan School Totals 250 150 100 250 150 100 1000 200 100 60 200 150 100 810 150 50 40 150 150 100 640 175 90 80 150 130 90 715
416 Porter 100 125 100 50 100 75 550
How to use a point-scoring system

As in criteria rating forms, the first step is to determine (and define, if necessary) the criteria to be used. Then distribute the points (100 or 1000 are good numbers to use) among the criteria, in proportion to their importance. Review all options with respect to the first factor, and decide, as a group, how many points to allocate to each. This number can range from 0 to the maximum assigned to the factor. Looking at all the options with respect to a single factor allows the group to make relative judgments.
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Balance Sheets
What balance sheets are
Balance sheets allow the identification, documentation and review of the pros and cons of a variety of options. They are simpler and quicker to apply than most of the other tools in this section and may be all that is necessary to spark consensus in a group.
What a balance sheet looks like

This is a balance sheet showing the pro's and con's of three methods of brainstorming. BALANCE SHEET ON BRAINSTORMING METHODS + (Advantages) Freewheeling Very spontaneous Tends to be creative Easy to build on others' ideas Difficult for one individual to dominate Discussion tends to be more focused than other approaches Everyone is encouraged to take part Anonymity allows sensitive topics to surface Can be used with very large groups Not necessary to speak out Strong individuals may dominate the session Confusion sets in Ideas may be lost when too many talk at once Difficult to wait one's turn Some loss of energy Reluctance to pass Not as easy to build on others' ideas Not possible to build on others ideas Slow pace Difficult to clarify ideas - (Disadvantages)
Round Robin
Slip Method
How to use balance sheets

Set up a large grid with two columns and a row for each of the options. Label the columns "+" and "-"; then enter the positive and negative aspects for each of the options in turn. The "+" and "-" aspects are ordinarily not paired.
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Weighted Voting
What weighted voting is

Weighted voting is a way to quantify the positions and preferences of group members. The group is given a number of votes that they can distribute among the various options. Weighted voting is useful for "taking the temperature" of the group as it is working toward consensus. It identifies the positions and priorities of the group. Weighted voting does not make decisions. It merely gives the group information about where individual members stand and how strongly their opinions are held. This information makes it easier for opposing viewpoints to surface. Consensus cannot be reached without dealing with those viewpoints.
What weighted voting looks like

Here's an example of weighted voting used by a family trying to reach consensus on where to go on vacation next year. Each member had six votes to distribute among four options. A B C D Dad Mom Lauren Matthew Michael 1 1 3 4 1 2 0 1 1 1 2 1 1 1 1 1 4 1 0 3 A: B: C: D: Disney world Camping in Yellowstone Myrtle Beach Grandparents
How to use weighted voting

Set up a gridmembers by options, as shown below-on a flip chart. Give each member a number of votes to distribute in accordance with their preferences. As a rule of thumb, the number of votes should be at least 1 1/2 times the number of options. Members then decide how to distribute their votes among the options to indicate their relative preferences. Encourage people to spread their votes rather than lump all their votes on a single favorite. Have members decide how they will distribute their votes before any votes are recorded. Ask members to show their votes for each option, all at once, by raising the number of fingers that represent their vote. (Literature Distribution has voting booklets, # 296091 ) Call for the votes for the first option, the second, and so on. Record all votes so that the group can see where the agreements and disagreements lie. It's therefore preferable not to include a sum line on the bottom that may bias the decision.
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Paired Comparisons
What paired comparisons are
Like weighted voting, using paired comparisons will help an individual or a group to quantify opinion or data based preferences. Each option (i.e., a potential solution) goes head-to-head against every other option. In each "face off", members vote for the option they prefer. Votes are recorded and totaled when all possible comparisons have been made. The power of paired comparisons comes from the choices it forces group members to make. Even when two alternatives seem equal, members must choose one or the other. Having to make difficult choices often leads people to see advantages (or disadvantages) they may not have noticed before. The highest total on the paired comparisons chart does not automatically become the group's decision. In working toward consensus, the group can focus discussion on the two or three highestscoring options.
What paired comparisons looks like

The weighted voting example shows how a family used that technique to work toward consensus on where to go on next year's vacation. The chart below shows the family's use of paired comparisons.
Options A B C D A vs B 4 1 --A vs C 4 -1 -A: Disney World
A vs D 3 --2
B vs C -1 4 --
B vs D -2 -3
C vs D --1 4
Totals 1 4 6 9
B: Camping
C: Beach
D: Grandparents
How to use paired comparisons

Set up a grid such as the one shown in the example. The number of possible comparisons depends on the number of options. In each comparison, each member has one and only one vote. He or she must decide which of the two alternatives is better. The total number of votes cast in any comparison must equal the number in the group. Everyone must cast a vote in each comparison, even if neither choice is very appealing.
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Tools for Documenting Processes / Planning Actions
Table of Contents Page Flowcharts ..................................................................................... 44 Gantt Charts .................................................................................. 46 Program Evaluation and Review Technique (PERT) Charts ......... 48 Value Stream Map......................................................................... 49
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Flowcharts
What flowcharts are
Flowcharts show the inputs, activities, decision points, and outputs for a given process. There are many variations that have been adapted for specific purposes. Process Maps are a specific type of flowchart used in Tyco Electronics.
What a flowchart looks like

Presented below is a flowchart of an approach used by many groups to work through a process management cycle.
PROCESS MANAGEMENT FLOWCHART

Key business processes Deploy objectives and action plans Identify critical work processes Document work processes
Meeting customer needs? Yes Monitor performance
No
Document performance gaps Use 8-D Problem Solving
Corrective Action taken Benchmark best practices
Improvement Opportunity identified Yes
No
Use the DMAIC process
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How to construct a flowchart

Flowcharts use standard symbols connected by arrows to show how the system or work process operates. To construct a flowchart, identify the major activities to be completed and decisions to be made as the recommended corrective action/solution is implemented. Then check the logic of the plan by following all possible routes through the chart to ensure that you have planned for contingencies. The following symbols are used when creating flowcharts. Parallelograms represent inputs and outputs. An input begins your work process and an output completes it. Additional inputs or outputs may occur during the work process.
Input/Output
Activity/Task
Rectangles represent an individual activity or task in the work process. These assignable steps are identified and placed in the correct sequence.
No
Decision?
Diamonds represent decision points in the work process. Decision points are questions we ask about conditions as they exist at a specific point in the work process.
Yes
Circles represent connectors, used at the bottom of one page and the top of the next page, to indicate that the flowchart is continued. They are also used to move from one place in a process flow to another point. Alphabetic characters are usually used inside the circle to eliminate confusion. Arrows connect symbols to indicate process direction.
Connector
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Gantt Charts
What Gantt charts are
What Who A B C D Jim Sue When J F M A M
-------| |--------|
A Gantt chart is a diagram that documents the schedule, events, activities, and responsibilities necessary to complete a project.
Lynn ----------------| Bill/Jim |----|
What a Gantt chart looks like
The form on the next page is an example of a Gantt chart. Although there are many variations, all Gantt charts document what is to be accomplished, by whom, and when. This chart also allows documentation of the assumptions underlying an implementation plan. For example, if the plan is based on installation of equipment by May 15, that assumption can be noted.
How to use a Gantt chart

Break the implementation plan into achievable steps. Assign responsibility for each step to a group member. Decide how long each task will take, and set a realistic completion date. Document the assumptions on which the plan is based and the contingency plans to implement if those assumptions are not valid.
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Gantt Chart
Problem statement As is: Desired State: Result Measure: Corrective Action/Solution ___________________________________________________________
Schedule
Task Assigned to
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Program Evaluation and Review Techniques (PERT) Charts

What PERT charts are
T4 T1 T2 T3 T5
Consider using a PERT chart for documenting and monitoring a complex implementation plan or one involving considerable expense. PERT is a derivation of a type of chart called Activity Network Diagram (AND).
PERT is an acronym formed from the words, Program Evaluation and Review Technique." Originally developed to improve the management of defense contracts, it is particularly good for complex or novel projects. It was the first of many network management techniques, such as Critical Path Method (CPM). A PERT chart shows all the events that must occur to allow the entire project to be completed within that time estimate.
What a PERT chart looks like

A sample PERT chart for planning and conducting staff meetings is shown below. The events are numbered (1-7). The time (in minutes) for each event is shown below the line. PERT CHART FOR STAFF MEETINGS
Reserve room
Develop meeting agenda 90 min
Write memo 20 min
Send memo 5 min
5
5 min 1 min
Conduct meeting 180 min
Evaluate meeting 15 min
4
Request coffee
Heavy line = Critical Path, a total of 315 minutes
How to make a PERT chart

To make a PERT chart, you must: Identify the required activities Determine the dependencies (e.g., both activities 1 and 2 must precede activity 3)
Estimate the time required for each activity With this information you can build a network" like the one shown. Of the various "paths," the "critical path" (often drawn as a heavier line) shows the minimum elapsed time that is required to complete the project as defined. Project costs may be allocated to the activities (or clusters of activities) so that both time and money can be monitored throughout the project.
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Value Stream Map
The Value Stream Map is a type of process map that displays key process flow and data, and also summarizes key metrics. It is used as a one-page summary for Six Sigma Projects. The Value Stream Map should be hand-written rather than computer generated, using flow diagram symbols that include Lean factors such as kanbans and cycle time. A sample is shown below, and a blank form follows.
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OTHER TOOLS DESCRIPTIONS
Other Tools Descriptions

Table of Contents Page Affinity Diagrams .......................................................................................... 52 Bar Charts .................................................................................................... 52 Benchmarking .............................................................................................. 52 Breakthrough Event ..................................................................................... 52 CEDAC......................................................................................................... 52 Control Charts .............................................................................................. 52 Cp and CpK.................................................................................................. 53 Data Flow Diagrams..................................................................................... 53 Error Proofing............................................................................................... 53 Experts/Expert Input..................................................................................... 53 Failure Mode and Effect Analysis (FMEA).................................................... 54 Fault Tree Analysis ...................................................................................... 54 Focus Groups............................................................................................... 54 Focused Area Improvement Event (FAIE).................................................... 54 Functional Analyst Systems Technique (FAST) Diagrams........................... 54 Hypothesis Testing....................................................................................... 55 Interrelationship Diagrams ........................................................................... 55 KANBAN ...................................................................................................... 55 Matrix Diagrams ........................................................................................... 55 Measurement Map ....................................................................................... 55 Procedure Sheets ........................................................................................ 56 Process Capability Analysis ......................................................................... 56 Process Map (Systems Diagram)................................................................. 56 Quality Function Deployment ....................................................................... 56 Quick Change-Over SMED / SMEM ......................................................... 57 Root Cause Analysis Diagrams.................................................................... 57 Scatter Diagrams ......................................................................................... 57 Sensitivity Analysis....................................................................................... 57 Simulation/Gaming ....................................................................................... 57 Standard Operations .................................................................................... 57 Stratification ................................................................................................. 58 T-Charts ....................................................................................................... 58 Time-Motion Studies .................................................................................... 58 Tree Diagrams ............................................................................................. 58 Total Productive Maintenance...................................................................... 58 WorkPlace Organization............................................................................... 58
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Tool Label Affinity Diagrams
Description Gathers large amounts of language data, organizes it into groupings based on the natural relationship between each item and groups of items. Also known as KJ Method (after its inventor Jiro Kawakita). Graphical display of information with several topics along the X axis and units of measure along the Y axis. The magnitude of each topic is displayed with a "bar" extending from the X axis. Identifying the characteristics of a group of organized activities in order to identify performance improvement opportunities. Includes flowcharting, identification of key decision points, comparing inprocess and results measures to targets and identification of gaps. (Provides entry point for undertaking 8D / 7 Step activity.) Implementing the Focused Area Improvement Event (FAIE) concepts throughout an entire factory at one time. (Cause and Effect Diagram with the Addition of Cards) The fishbone diagram is posted as a chart in the work area for anyone to add problems and solutions using stickon notes (cards) Graphical method for monitoring and evaluating whether a process is or is not in a state of statistical control (stable).
Utility A creativity tool used to organize large amounts of information such as opinions, ideas, issues, etc. Imposes order on chaotic information, displays and clarifies relationships and equalizes the power of group members. Visual display of the magnitude of different topics, relative to each other. Can also show change in magnitude for one topic at different point in time, place, etc. Systematic view of performance as seen by the customer for the output and the in-process measures that indicate process capability to meet customer requirements. Encourages cross functional teamwork to identify end-to-end process performance, as viewed by the customer.
Bar Charts
Benchmarking
Breakthrough Event (Factory Breakthrough Event)
Achieves the benefits of a FAIE through a large-scale transformation of the factory.
CEDAC
Provides broader participation and longer-term use of the Cause and Effect Diagram. Requires effective administration and leadership to prevent its becoming wallpaper.
Control Charts
Used to show variability in the work process is either random or due to unique events. Supports prevention by showing whether a process is in or out of control or if there is a trend toward the process being out of control.
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Tool Label Cp and CpK
Description Cp measures the ability of the variation in your process to fit within the specification limits (derived from customer requirements.) CpK measures the location of your process mean in comparison with the nearest specification limits. Display of the major activities performed to produce an output. Consists of bubbles" for each activity, arrows between activities labeled with the outcome of the preceding activity, and arrows into each bubble showing contributing information resources needed to accomplish the bubbled" activity. A variety of tools and techniques that make it impossible to make an error or produce a defect. Syn: fail-safe, mistake proofing, Poka-Yoke. Surveying or interviewing knowledgeable people in the field under investigation and presenting findings for team evaluation. Note: Does not require the expert be asked to solve the problem or issue.
Utility Cp answers the question: Will my process variation fit within the specification limits? CpK answers the question: Is my process centered within the specification limits? Provides visual display of the activities, outcomes, and supporting resources needed to produce an output.
Data Flow Diagrams
Error Proofing
Reduces scrap and downtime.
Experts/Expert Input
Bringing the views of those with great experience and success in the subject provides views and information that would not be normally available to the team.
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Failure Mode and Effect Analysis(FMEA)
The systematic analysis of a product, service, or activity to identify all possible failure modes and the effect the failure will have on the rest of the system or process. Type of Tree Diagram. Defects, errors or faults are identified on the left with causes displayed as you move to the right.
Documentation is used to identify areas of improvement and possible error-proofing opportunities.
Fault Tree Analysis
Systematically identifies the causes of process failures. Examination of the causal relationship of faults, defects etc. can lead to understanding of common or root causes. Efficient and data based technique to gather objective information prior to the committing of resources to the marketing of a new product or service.
Focus Groups
A customer focused research meeting of a small cross-section of representative customers during which customer attitudes, feelings, or emotions regarding product or service offerings are uncovered. A moderator leads the group through a controlled set of topics to probe customer reaction to the focused topic of the research. Implementing the concepts of standard work, just-in-time techniques, and synchronous manufacturing. Also known as lean manufacturing. Functional Analysis Systems Technique (FAST) Diagram is a visual display of the functional relationships between the components of a system. Elements are connected based on their HowWhy relationship such that the How" for an element can be observed by examining the element(s) on the right and the Why for an element can be observed by examining the element(s) on the left. (A type of Tree Diagram)
Focused Area Improvement Event
Improves product flow, reduces inventory and scrap, improves throughput and increases employee involvement by analyzing and then redefining the work that is required to perform the process. With this display the need for every element/step can be understood. It often identifies unnecessary steps which simplify the process and reduce resources required.
Functional Analysis Systems Technique (FAST) Diagrams
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Hypothesis Testing
Statistical technique that compares two sets of data and estimates the probability of their representing different populations to a selected level of confidence. Takes a central idea, issue or problem, and maps out the logical or sequential links among related items. Arrows going into or out of an item clarify the significance of the time relative to the topic. AKA Interrelationship Diagram, Relationship Diagram A method of Just-in-Time production that uses standard containers or lot sizes and a pull system in which work centers signal with a card that they wish to withdraw parts from feeding operations or suppliers. Displays the relationship between a number of variables. Matrix types can vary based on the types of data: - "L Matrix" is two dimensional - T Matrix" allow for three variables to be displayed - X Matrix" allows four variables to be displayed. (four quadrants) - "Prioritization Matrix" is a specific display of alternatives along horizontal axis and criteria along the vertical axis. AKA Criteria Rating Forms A type of tree diagram which displays the hierarchical relationship of performance measurements. The results measure" is displayed to the left and the supporting "results measures" and process measures" are ordered to the right. Usually expressed in the form of Tier 1, Tier 2, Tier 3, etc. measurements.
Provides statistical confirmation that assumptions about the underlying distribution of a process are correct. (e.g. the process centerline has not changed) Used to understand the interrelationships between variables in complex problems by using logical links. Allows logical patterns to occur. Provides a context for a systems view of complex processes so those sub components can be flowcharted. Reduced levels of inventory at all levels and savings on carrying costs. Reduced scrap costs.
Interrelationship Diagrams
KANBAN
Matrix Diagrams
Organizes large numbers of pieces of information such as characteristics, functions, and task into sets of items to be compared; Can also code each relationship to show its strength and the direction of its influence. Facilitates team consensus building.
Measurements Map
Visually identifies the relationship of performance measures. Allows the selection and simplification of performance measure reporting.
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Procedure Sheets
Documentation describing the detailed activities, responsibilities, and resources needed to accomplish a process. Usually in the form of a table with columns for the: Process step Who does the step When its done How its done, with details sufficient to allow the untrained worker to perform the function.
Provides standardized repeatable method for accomplishing a task. Allows for training and communication consistency, maintenance of measurements specific to key decision points in the process. Enables process improvement.
Process Capability Analysis
A pictorial representation of the data collected from individual process measurements over a period of time. After plotting the data a centerline can be drawn and variation compared to predetermined upper and lower specification limits. A type of Time Chart (Run Chart). An analysis of the sequence of events required to complete a specific business process. Process Maps indicate the organizations or functions which perform a particular business activity. AKA: CrossFunctional Process Map, Systems Diagrams Process for identifying the needs of the customer (voice of the customer), and translating them into product and services that meet customer requirements and improve productivity. Specialized types of Matrix Diagram are used to relate customer requirements to supplier specifications. Succeeding matrices cascade requirements until all enabling sub-elements have been accounted for.
Enables decision making on the stability and predictability of a process to meet pre-required specifications. Indicates the degree to which the process can be expected to perform with in specification limits.
Process Map (Systems Diagrams)
Provides visual logic path of the sequence of events needed to achieve a desired output. Provides two dimensional view of events overtime and who is responsible for accomplishing a particular activity.
Quality Function Deployment
Permits the display of complex relationships between customer requirements, process requirements, and supplier specifications.
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Quick Change-Over (SMED SMEM: Single minute exchange of dies / molds)
The concept of setup times of less than 10 minutes, developed by Shigeo Shingo in 1970 at Toyota.
Increased machine utilization, lower lot sizes for less inventory, increased flexibility of the manufacturing process for reductions of lead time, and better on-time delivery. Used in the process of doing Root Cause Analysis, the RCA Diagram helps the team organize the potential causes to a problem and visually leads to the discovery of root causes.
Root Cause Analysis Diagrams
A graphic representation of the causes, effects, and interactions of a process dysfunction. Supports the analysis and display of causes and effects. (The causes move from left to right and the effects from right to left) The diagram is a much more indepth cause and effect tool that the Fishbone diagram. The question that should be asked repeatedly in order to create the diagram is Why could this be occurring?" Graphical two-dimensional display of the relationship between two variables. e.g. age and income. The patterns formed by the data points can indicate a positive correlation, negative correlation, no correlation, non-linear correlation, etc. Analysis technique to examine the impact on the output of a process or system from varying the magnitude of one or more of the inputs. Using a mathematical model of a system or process to simulate the operation of the process. Discrete or probabilistic calculations are made based on assumptions for the process est. by the examiner. Designed (statistically designed) experiments can be conducted to optimize a process or system. Used in the Focused Area Improvement Event, these techniques balance worker and machine times to customer demand. (Basic industrial engineering tools + lean manufacturing concepts.)
Scatter Diagrams
It shows if a relationship exists between two factors and the strength of that relationship. Enables the prediction of the occurrence of one factor from the value of another factor. Allows estimation of the effect of a change of an input on the output of a process, prior to actually committing resources. Allows simulation of varying process dynamics and levels of variable so that total process optimization can be achieved.
Sensitivity Analysis
Simulation/Gaming
Standard Operations: Takt time Work sequence Standard WIP Worker cycle time
Increased productivity and customer responsiveness with minimum inventory.
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Stratification
Classifying data into categories or groups based on characteristics.
When data is made up of different sets, variations can be uncovered by isolating each subgroup. e.g. heights of children can be better understood if data for boys and girls is viewed separately Provides clear identification of the relationships between elements of a multifaceted topic. e.g. Customer requirements vs supplier specifications Provides basis for setting standard times for accomplish an output. Basis for measuring improvements to existing processes. Visual display of all expected activity gives a realistic view of what needs to be done. Can validate that planned tasks (on the right) are sufficient to accomplish objective (to the left). TPM is based on the maintenance system used in the airline industry. The goal of TPM is elimination of unplanned downtime and major equipment failures. Increased worker efficiency and productivity, reduced errors and scrap,
T-Charts
Two labeled columns forming a "T" on a document which show the oneto-one relationship between two sets of items. Industrial engineering technique for observing and documenting required times and movements to accomplish a specific task. Breaks a plan into increasing levels of detail and maps all the tasks required to accomplish the objective. One of the 7 management tools for quality control. Preventive maintenance plus continuing efforts to adapt, modify, and refine equipment to eliminate causes of failure and to assure equipment up-time. The arrangement of tools, equipment, materials, and supplies according to their frequency of use. Those items that are never used are removed from the workplace, and those items that are used frequently are located for fast, easy access and replacement.
Time-Motion Studies
Tree Diagrams
Total Productive Maintenance (TPM)
Workplace Organization
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TOOLS INDEX
Tools Index
Tool Title Page Affinity Diagrams ........................................................................... 52 Balance Sheets ............................................................................. 40 Bar Charts ..................................................................................... 52 Benchmarking ............................................................................... 52 Breakthrough Event....................................................................... 52 Brainstorming ................................................................................ 26 Brainwriting.................................................................................... 28 Cause-And-Effect Diagrams (Fishbone)........................................ 10 CEDAC.......................................................................................... 52 Checksheets.................................................................................... 2 Control Charts ............................................................................... 52 Cost-Benefit Analysis .................................................................... 22 Cp and CpK................................................................................... 53 Criteria Rating Forms .................................................................... 36 Data Flow Diagrams ...................................................................... 53 Experts/Expert Input...................................................................... 53 Failure Mode and Effect Analysis (FMEA)..................................... 54 Fault Tree Analysis........................................................................ 54 Flowcharts ..................................................................................... 44 Focus Groups................................................................................ 54 Focused Area Improvement Event (FAIE)..................................... 54 Force Field Analysis ........................................................................ 8 Functional Analyst Systems Technique (FAST) Diagrams ............ 54 Gantt Charts .................................................................................. 46 Histograms .................................................................................... 20 Hypothesis Testing........................................................................ 55 Interrelationship Diagrams............................................................. 55
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Interviewing ..................................................................................... 4 KANBAN........................................................................................ 55 List Reduction................................................................................ 32 Matrix Diagrams ............................................................................ 55 Measurement Map ........................................................................ 55 Paired Comparisons ...................................................................... 42 Pareto Analysis ............................................................................. 16 Pie Charts...................................................................................... 12 Program Evaluation and Review Technique (PERT) Charts ......... 48 Procedure Sheets.......................................................................... 56 Process Capability Analysis .......................................................... 56 Process Maps (Systems Diagram) ................................................ 56 Quality Function Deployment ........................................................ 56 Quick Change-Over SMED / SMEM........................................... 57 Root Cause Analysis Diagrams..................................................... 57 Run Charts .................................................................................... 14 Scatter Diagrams........................................................................... 57 Sensitivity Analysis ........................................................................ 57 Simulation/Gaming ........................................................................ 57 Standard Operations ..................................................................... 57 Stratification................................................................................... 58 Surveying/Questionnaires ............................................................... 6 T-Charts ........................................................................................ 58 Time-Motion Studies ..................................................................... 58 Tree Diagrams............................................................................... 58 Total Productive Maintenance ....................................................... 58 Value Stream Map......................................................................... 49 Weighted Voting ............................................................................ 42 5 WHY Analysis............................................................................. 18 Workplace Organization ................................................................ 58
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VARIABILITY -- TABLE OF CONTENTS:
Types of Data ___________________________________________________________________2 Definitions ______________________________________________________________________3 Data Exercise (Parkbench) _________________________________________________________4 Process Flowchart ________________________________________________________________6 Bar Chart _______________________________________________________________________6 Pie Chart _______________________________________________________________________6 Line Chart_______________________________________________________________________7 Checksheet _____________________________________________________________________7 Fishbone _______________________________________________________________________8 Pareto Chart _____________________________________________________________________8 Histogram _______________________________________________________________________9 Scatter Diagram __________________________________________________________________9 Correlation Coefficient ____________________________________________________________10 Process Control Chart ____________________________________________________________11 Chart of Charts __________________________________________________________________12 Choosing the Correct Control Chart __________________________________________________13 Methods of Managing a Process Quincunx Exercise _______________________________________________________________15 Percent of Area Under the Curve ____________________________________________________16 Process Control Charts What is a Control Chart? __________________________________________________________17 How Do We Determine Control? ____________________________________________________17 Two Basic Uses of Control Charts ___________________________________________________17 Process Control Chart - Using Zones_________________________________________________18 A Type of Control Chart: X-bar and R ________________________________________________19 Reading an X-bar and R Control Chart _______________________________________________20 Zone Test for Control _____________________________________________________________29 Attribute Control Charts ___________________________________________________________30 Interpretation of Attribute Control Charts ______________________________________________33 Attribute Charts versus Variables Charts ______________________________________________33 Process Capability Process Capability Assessment Cp __________________________________________________40 Process Capability Assessment Cpk _________________________________________________43 Measurement System Analysis Sources of Variation ______________________________________________________________48 Precision and Accuracy ___________________________________________________________50 Performing a Gage R&R Study _____________________________________________________53
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Variability
Understanding Variation
Purpose: To understand the nature of data and variation and its effects on process performance Process: Review types of data. Understand the measures of central tendency and variation. Review the types of charts to use. Introduce the concept of Normal Distribution. Introduce the concept of Process Capability. Introduce the concept of Process Control charts. Discuss the interpretation of Process Control charts.
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Types of Data
Scale Nominal Yes / No Ordinal Interval Definition Grouping of data by labels or names Data exists in only two states Ranking of data into a position in a series Data falls on a continuous numerical scale Example Accounting, Personnel, Small, Medium, etc. Exempt / Non-exempt Pass / Fail Good / Bad Survey Rating Scales, Patient Acuity Level Expenses ($), Time, Revenue, Dimensions
Identify the type of data and the appropriate measurement scale: VI AO AN AY = = = = VARIABLE / INTERVAL SCALE ATTRIBUTE / ORDINAL SCALE ATTRIBUTE / NOMINAL SCALE ATTRIBUTE / YES/NO SCALE
_____ Sweater sizes "small," "medium," "large," and X-large
_____ Manufacturing, Accounting, Personnel, and Marketing

_____ Number of copies per machine, per month _____ Your pay grade level _____ Your Social Security Number _____ Numerical performance rating scales _____ Your monthly or yearly salary _____ Your exempt or non-exempt status
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Appropriate Statistics for Data Analysis

Data Type Attribute Attribute Attribute Variable Scale Nominal Yes/NO Ordinal Interval Definition Grouping of data by labels or names Data exists in only two states Ranking of data into a position in a series Data falls on a continuous numerical scale Permissible Statistics Mode Mode Mode, Median Mode, Median, Average, Range, Std. Deviation
Definitions
Measures of Central Tendency: Average: A central tendency measure determined by dividing the sum of the individual data points by the number of data points. Mode: The value most often repeated in the data set. It is a central tendency measure represented by the highest point in the distribution curve or the histogram of a data set. Median: The value of the data point that has an equal number of points above and below it when all the data points are arranged in ascending order of magnitude. If two values fall in the middle, the median is the average of the two.
Measures of Variation: Range: A dispersion measure representing the difference between the highest and the lowest values in the data set. Standard Deviation: A dispersion measure representing how close or how far any single value is from the mean.
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Parkbench
Twenty Grand! $5 Five lousy bucks $2,000
$5,000,000
Two are vagrants and each says, "I've only got $5 to my name." The third is a worker who says, "I've got $2,000, counting my old car and what I have in the bank." The fourth says, "I'm doing okay. I have a car, some equity in a house, and savings. I'm worth $20,000." The last says, "I'm a multimillionaire. I'm worth $5 million."
Calculate each of the following for the example above: Mean: Median: Mode: __________ __________ __________
1. If you were running against the mayor in this election, which measure(s) would you use to "prove" his or her incompetence? 2. Now, if you were the mayor seeking higher office based on your record of economic development in this little "town" of five, which measure(s) would you use during your campaign? 3. Suppose our millionaire loses 2 million in the volatile tulip bulb market. This decreases the range by 2 million. Which measures of the center are not affected by the change in the range?
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Process Flowchart
A flowchart is a pictorial representation of a process, useful for investigating opportunities for improvement by gaining a detailed understanding of how the process actually works. By examining how various steps in a process relate to each other, one can often uncover potential sources of trouble.
Getting to Work in the Morning Process Flowchart
Start Turn off Alarm Groan
Below 70?
Turn on Heat
N
Bath Chores Breakfast
Y
Shake Spouse
Wake Spouse?
Spouse need Money?
Grumble
N
Crawl Out of Bed
N
Kiss Spouse Walk to Car Drive to Work Stop Keep Job
Y
Turn on Light Dark in Room?
N
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Bar Chart
Bar charts show comparisons of quantities by the relative lengths of the bars representing them. Quantities may be frequencies of events in different locations, cost of different types of breakdowns, etc.
New Customers by Month
# of customers
100 50 0 J F M A M J J A S O N D
Pie Chart
Pie Charts are graphs in which the entire circle represents 100% (not 360 degrees) of the data displayed. The circle (pie) is divided into percentage slices that clearly show the largest shares of data.
Employee Means of Transportation to Work
5% 29%
9%
57% Drive alone Car Pool Public Trans Other
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Line Chart
Line Charts are employed to visually represent data. They help monitor a process to see whether or not the long-range average is changing. Points are plotted on the graph in the order in which they become available. A danger in using a Line Chart is the tendency to see every variation in data as being important. The Line Chart, like other charting techniques, should be used to focus attention on truly vital changes in the process.
Expense % of Plan
Percent
115 110 105 100 95 90 85 80 J F M A M J J A S O N D J F M A M J J A
Target
Month
Checksheet
Checksheets are an easy-to-understand form used to answer the question, "How often are certain events happening?" It starts the process of translating "opinions" into "facts." Constructing a checksheet involves the following steps: Agree on the exact event being observed. Decide on a time period during which data will be collected. Design a form that is clear and easy to use, making sure that all columns are labeled, and that there is enough space to enter the data. Collect the data consistently and accurately.
Response Time Variability

Purpose: To determine the number of UM calls where Response Time is not within the specified limits. Response Time Cells Number of Calls Total 0.0-2.0 |||| |||| || 12 2.1-4.0 |||| |||| 10 4.1 - 6.0 |||| | 6 6.1 - 8.0 ||| 3 Grand Total 31 Remarks
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Cause and Effect

A Cause and Effect diagram (also referred to as a Fishbone diagram) represents the potential relationship between a certain "effect" and the potential "causes" influencing it. The effect or problem is stated on the right side of the chart and the potential influences or "causes" are listed to the left.
Cause 1
Cause 2
EFFECT
Cause 3
Cause 4
Pareto Chart
A Pareto Chart is a special form of vertical bar graph that helps to determine which problems to solve and in what order. Doing a Pareto Chart based upon either Checksheets or other forms of data collection directs attention and effort to the truly important problems. We will generally gain more by working on the tallest bar than by tackling the smaller bars.
100 90 300 80 70 200 60 50 40 100 30 20 10 0 1 2 3 DEFECTS 4 Other 0 Cumulative Percent
F r e q u e n c y
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Histogram
A Histogram takes measurement data, e.g., temperature, dimensions, etc., and displays its distribution. This is critical because we know that all repeated events will produce results that vary over time. A Histogram reveals the amount of variation that any process has within it.
Customer Call Response Time in Seconds
25
F r e q u e n c y
20 15 10 5 0
0.0 - 2.0 4.1 - 6.0 8.1 - 10.0
Response Time in Seconds
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Scatter Diagram
The Scatter Diagram is used to study the possible relationship between one variable and another. The Scatter Diagram is used to test for possible cause and effect relationships. It cannot prove that one variable causes the other, but it does make it clear whether a relationship exists and the relative strength of that relationship.
Billing Quality vs. Customer Satisfaction

% Customer Satisfaction
100 98 96 94 92 90 88 90 91 92 93 94 95 96 97 98 99 100
% Billing Quality
Correlation Coefficient
NEGATIVE (INDIRECT) POSITIVE (DIRECT)
Slight; almost negligible relationship

-1.0 -0.7 -0.3 0 0.3 0.7 1.0
Moderate correlation; substantial relationship High correlation; marked relationship
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Process Control Chart

A Control Chart is a run chart with statistically determined upper (Upper Control Limit) and possibly lower (Lower Control Limit) lines drawn on either side of the process average. Control Charts give us a technique used to monitor a process over time. By understanding the patterns formed by the process, we can identify opportunities for process improvement. Control Charts are the only tool that allow us to predict future outputs of a process and understand the voice of the process.
X-Bar & R Control Chart
Average Chart
105 100 95 90 85 80 J F M A M J J A S O N D J F M A M J J A
Range Chart
6 5 4 3 2 1 0 J F M A M J J A S O N D J F M A M J J A
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Chart of Charts
Objective
To compare quantities
Type of Chart
BAR CHART
Type of Data Required

Base Line: Nominal, Ordinal, or yes,/no Scale line: Interval
To show change in quantity over time
PLOTTED LINE GRAPH
Base Line: Interval, Ordinal Scale Line: Interval, Nominal labels
To show a proportion or a percentage of the whole To highlight most significant element(s) To determine cause and effect To display a frequency distribution To show the relationship between two variables To estimate the ability to produce a new output within specifications To show process variation over time
PIE CHART PARETO CHART
"Slices" are percents Base Line: Nominal, Ordinal Scale Line: Interval (and %)
CAUSE AND EFFECT (Fishbone) HISTOGRAM
Nominal Base Line: Interval Scale Line: Interval (frequency)
SCATTERGRAM PROCESS CAPABILITY CHART PROCESS CONTROL CHART
Both Lines: Interval, Ordinal Base Line: Interval, Ordinal Scale Line: Interval Base Line: Interval, Ordinal Scale Line: Interval
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Choosing the Correct Control Chart

Variable
What Type Of Data ?
Attribute / Discrete
Data Collected In Groups or Individuals ?
GROUPS (Averages) (n>1)

X-Bar R X-Bar S
INDIVIDUAL VALUES (n=1)

Individuals Moving Range
Counting Specific Defects or Defective Items ?
Specific Types Of Defects
Defective
Items
NOTE: X-Bar S is appropriate for subgroup sizes (n) of > 10
Is The Probability Of A Defect Low ?

Poisson Distribution
NO
If You Know How Many Are Bad, Do You Know How Many Are Good? Binomial Distribution
YES
Individuals Moving Range
YES
Area of Opportunity Constant In Each Sample Size ?
Constant Sample Size ?
NO
U Chart
YES
C Chart
NO
P Chart
YES
NP Chart
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Quincunx Exercise: Methods of Managing a Process

Rule 1 Leave the funnel fixed, aimed at the target, no adjustment. Rule 2 Measure the difference between the observation and the target. Adjust the funnel the distance between the observation and the target in the opposite direction. If the target is 50 and the observation is 48 and the funnel is on 50, you would move the funnel to 52. If the observation is 55 and the funnel is on 50, move the funnel to 45.
Rule 3
Measure the difference between the observation and the target. Move the funnel first to 50 and adjust the difference between the observation and target. If the funnel is on 48, and the observation on 55, the difference is 7. Move the funnel to 57 (Target and Difference).
Rule 4 Move the funnel to the last observation. The aim is to repeat the last observation.
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Quincunx Exercise: Checksheet Rule Number:

Rule 1
45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 Compute the following for each sample:
Rule ____
Mean: Mode: Median: Standard Deviation:
_________ _________ _________ _________
__________ __________ __________ __________
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Percent of Area Under the Curve
2.1% 13.6%
34.13%
34.13%
13.6%
2.1%
Percent of Area Under the Curve
34.13% 34.13% 2.1% 3 13.6% 13.6% 1 2.1% 3
68.3% 95.5% 99.7%

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What is a Control Chart?

Upper Control Limit
+ 3 (2.1%) + 2 (13.6%)
X-bar
+ 1 (34.13%) - 1 (34.13%) - 2 (13.6%) - 3 (2.1%)
Lower Control Limit Note: Control limits are not tolerance limits. Later we will look at Cpk, which compares the distribution to customers tolerances.
How Do We Determine Control?

We determine process control by looking for signals that tell us things have changed based on the knowledge of the normal curve. We use the knowledge about the normal curve to determine when the process has changed and therefore major differences between the observed variation and expected variation provides us with the signals. Expected variation is 68% between +/- 1 Expected variation is 95% between +/- 2 Expected variation is 99.7% between +/- 3
Two Basic Uses of Control Charts

As a judgment Was the process in statistical control? As an operation (ongoing) A control chart can also be used to attain and maintain statistical control during production. The process has already been brought into statistical control (or nearly so, with only rare evidence of a special cause). Although it may be important, removal of special cause of variation in order to move toward statistical control is not improvement of the process. The important problems of improvement commence once you achieve control." W. Edwards Deming: Out of Crisis
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Process Control Chart - Using Zones
Upper Control Limit

Zone A Zone B Zone C
+ 3 + 2 + 1 - 1 - 2 - 3
Lower Control Limit
X-bar
Zone C Zone B Zone A
Expected variation is 68% between +/- 1 (Zone C) Expected variation is 95% between +/- 2 (Zones B and C) Expected variation is 99.7% between +/- 3 (Zones A, B, and C)
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A Type of Control Chart: X-bar and R

There are many different types of control charts that are used in many different ways. They are designed to provide information on the behavior of the process. We will be demonstrating the X-bar (average) and R (range) chart. It is used for displaying continuous interval data (measurement) from a process. This displays both the average and range, and both charts are important. The average (X-bar) is based on a sample of data from the process; each point is made up of a sample from 2 to 25 observations. These averages are plotted on the average chart. The average of these averages is noted as Xdbar or X double bar. Each sample also has a range the difference between the highest and lowest observation. This range is plotted on the range chart (R) for each sample. This range gives us the variation of the sample and helps us to understand the reliability of the process. Below is an example of the X-bar and R chart.
21.5
X B A R
21.0 20.5 20.0 19.5
UCL = 21.25 Xdbar = 20.50 LCL = 19.75 UCL = 3.0 Rbar = 1.5 LCL 0
1 3 5 7 9 11 13 15 17 19 21 23
R a n g e
3 2 1 0
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Reading an X-bar and R Control Chart
R Chart
Is it in control?
Analyze Why
X Chart
Is it in control?
Analyze Why Assess Capability
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Normal Variation Free from assignable causes of variation
14 13 12 11 10 9 8 5 A B C C B A
UCL Xdbar LCL
XBAR
Range
4 3 2 1 0 0 5 10 15 20
UCL Rbar LCL
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Zone Test 1 Failure (Range) (Point Out) Any point beyond the control limits (beyond +/- 3)
14 13 12 11 10 9 8 A B C C B A
X B A R
UCL Xdbar LCL
R a n g e
5 4 3 2 1 0 0 5 10 15 20
UCL Rbar LCL
Zone Test 1 Failure (Average) (Point Out) Any point beyond the control limits (beyond +/- 3)
14
X B A R
13 12 11 10 9 8 A B C C B A
UCL Xdbar LCL
R a n g e
5 4 3 2 1 0 0 5 10 15 20
UCL Rbar LCL
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Zone Test 2 Failure (Range) Two of three successive points in Zone A (between 2 and 3 on the same side of Rbar) 14
13
XBAR
12 11 10 9 8 5
A B C C B A
UCL Xdbar LCL UCL Rbar LCL
Range
4 3 2 1 0 0 5 10 15 20
Zone Test 2 Failure (Average) Two of three successive points in Zone A (between 2 and 3 on the same side of Xdbar) 14
13 12 11 10 9 8 5 A B C C B A
UCL Xdbar LCL
XBAR
Range
4 3 2 1 0 0 5 10 15 20
UCL Rbar LCL
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Zone Test 3 Failure (Range)

Four of five successive points in Zone B or beyond (between 1 and 3 on the same side of Rbar)
14 13 12 11 10 9 8 5 A B C C B A
XBAR
UCL Xdbar LCL
Range
4 3 2 1 0 0 5 10 15 20
UCL Rbar LCL

Zone Test 3 Failure (Average)
Four of five successive points in Zone B or beyond (between 1 and 3 on the same side of Xdbar)
14 13 12 11 10
9 8 5
A B C C B A
XBAR
UCL X-dbar LCL
Range
4 3 2 1 0 0 5 10 15 20
UCL R-bar LCL
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Zone Test 4 Failure (Range)

Eight successive points in Zone C or beyond (between Rbar and 3) on the same side of the centerline 14
X B A R
13 12 11 10 9 8 5 4 3 2 1 0 0 5 10 15 20 A B C C B A
UCL Xdbar LCL
R a n g e
UCL Rbar LCL

Zone Test 4 Failure (Average)
Eight successive points in Zone C or beyond (between Xdbar and 3) on the same side of the centerline
14 13
X B A R
12 11 10 9 8
A B C C B A
UCL Xdbar LCL
R a n g e
5 4 3 2 1 0 0 5 10 15 20
UCL Rbar LCL
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Trend (Range) Eight successive points without a major change in direction

14 13
X B A R
12 11 10 9 8 5 4 3 2 1 0 0 5 10 15 20
A B C C B A
UCL Xdbar LCL UCL
R a n g e
Rbar LCL
Trend (Average) Eight successive points without a major change in direction

14 13 12 A B C C B A
UCL Xdbar LCL
XBAR
11 10 9 8 5
Range
4 3 2 1 0 0 5 10 15 20
UCL Rbar LCL
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Mixture Eight successive points on both sides of centerline in Zones A & B, with none in Zone C.
(Eight successive points on both sides of the centerline between 1 and 3, with none between +/- 1) 14
13 12 11 10 9 8 5 A B C C B A
XBAR
UCL Xdbar LCL UCL Rbar
Range
4 3 2 1 0 0 5 10 15 20
LCL
16 14 12 10
Stratification Fifteen or more successive points in Zone C; few or no points beyond Zone C (Fifteen or more successive points between +/- 1)
A B C C B A
UCL Ave LCL
XBAR
8 6 4 14 12 10 8 6 4 2 0 0 5 10 15 20
Range
UCL Ave LCL
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Cycle
A repeating pattern of change

14 13 12 11 10 9 8 5 A B C C B A
XBAR
UCL Xdbar LCL
Range
4 3 2 1 0 0 5 10 15 20
UCL Rbar LCL

25
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Zone Test for Control

Zone Test 1 Failure: One point beyond Zone A (beyond +/- 3 -- the control limits) Zone Test 2 Failure: Two of three successive points in Zone A or beyond (same side of centerline * ) Two of three successive points between 2 and 3 (same side of the centerline * ) Zone Test 3 Failure: Four of five successive points in Zone B or beyond (same side of the centerline * ) Four of five successive points between 1 and 3 (same side of the centerline * ) Zone Test 4 Failure: Eight successive points in Zone C or beyond on the same side of the centerline Eight successive points between the centerline and 3 on the same side of the centerline This is also known as a Shift Trend: Eight successive points without a major change in direction Mixture: Eight successive points on both sides of centerline in Zone A & B, with none in Zone C Eight successive points on both sides of the centerline between 1 and 3 with none between +/- 1 Stratification: Fifteen or more successive points in either C Zone; few or no points beyond Zone C Fifteen or more successive points between +/-1; few or no points outside of +/-1 Cycle: A repeating pattern of change
* Sources differ on whether or not this test refers only to one side of the mean. If the data shows these characteristics on both sides, it would still be wise to investigate the process.
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Attribute Control Charts
The p-chart is used to monitor any attribute that may be expressed as a percentage or a proportion.
P Chart for Rejects

0.10 UCL=0.09593
Proportion
0.05 P=0.03833
0.00 0 10 20 30
LCL=0
Sample Number
30
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The p-Chart may be used in situations where the sample sizes are not equal. Changes in the sample sizes will result in changes in the locations of the control limits. Interpretation is somewhat more difficult since each point must be evaluated with respect to its own control limits.
P Chart for Rejects

UCL=0.3324 0.3
Proportion
0.2 P=0.1685 0.1
0.0 0 10 20
LCL=0.004728
Sample Number
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The np-Chart is used to monitor any attribute that may be expressed as a count rather than a proportion. The np-Chart is only used when sample sizes are equal.
NP Chart for Rejects

10 UCL=9.593
Sample Count
5 NP=3.833
0 0 10 20 30
LCL=0
Sample Number
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Interpretation of Attribute Control Charts

The interpretation of Attribute Control Charts is similar to the interpretation of Variables Control Charts except that only four tests of instability are used.
One point outside of the control limits. Nine consecutive points on the same side of the centerline. Seven points in a row, all increasing or decreasing. Fourteen consecutive points alternating up or down.
Attribute Charts versus Variables Charts

Attribute Control Chart
Easier and sometimes more cost effective to use. Can utilize existing inspection records or other records. Larger sample sizes are needed. Only provides information on changes in the rate of defects or rejects. Provide more information about the process, including process centering and spread. Can indicate trouble in a process before defects and rejections start appearing.
Variables Control Chart

More difficult data collection. Must have exact measurements. Smaller sample sizes are needed.
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Line # 1
21.5 21.0
UCL = 21.25 Xdbar = 20.50 LCL = 19.75 UCL = 3.0 Rbar = 1.5 LCL = 0
1 3 5 7 9 11 13 15 17 19 21 23
XBAR
20.5 20.0 19.5 3
Range
2 1 0
Zone Test 1 Fail Zone Test 2 Fail Zone Test 3 Fail Zone Test 4 Fail Trend Mixture Stratification Cycle Normal Variation
Definition Range Any point beyond the control limits Two of three successive points in Zone A or beyond Four of five successive points in Zone B or beyond Eight successive points in Zone C or beyond on the same side of the centerline ("Shift") Eight successive points without a major change in direction Eight successive points fall on both sides of centerline in Zones A & B, with none in Zone C Fifteen or more successive points in either C Zone; few or no points beyond Zone C A repeating pattern of change Free from assignable causes of variation
Average
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Line # 2
21.5 21.0
1 3 5 7 9 11 13 15 17 19 21 23
XBAR
20.5 20.0 19.5 3
Range
2 1 0
Average
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Line # 3
21.5 21.0
1 3 5 7 9 11 13 15 17 19 21 23
XBAR
20.5 20.0 19.5 3
Range
2 1 0
Average
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Line # 4
21.5 21.0
UCL = 21.25 Xdbar = 20.50 LCL = 19.75 UCL = 3.0 Rbar = 1.5
XBAR
20.5 20.0 19.5 3
Range
2 1 0 1 3 5 7 9 11 13 15 17 19 21 23
LCL = 0
Average
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Line # 5
21.5 21.0
UCL = 21.25 Xdbar = 20.50 LCL = 19.75 UCL = 3.0 Rbar = 1.5
XBAR
20.5 20.0 19.5 3
Range
2 1 0 1 3 5 7 9 11 13 15 17 19 21 23
LCL = 0
Average
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Line # 6
21.5
X B A R
21.0 20.5 20.0 19.5
1 3 5 7 9 11 13 15 17 19 21 23
R a n g e
3 2 1 0
Average
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Process Capability Assessment Cp

Process Capability is designed to assess the ability of the process to meet the customer's requirements. Process capability follows process control. Process capability determines the process variation and compares it to the customers requirements. The first step is to collect the process information and display the information on a histogram. The histogram displays the total variation the process generates. The next step is to draw the specification limits on the histogram. These specification limits are defined by the customer. Specification limits represent the lower requirement and the upper requirement. For example, if a customer wants you to respond to a problem within a range of five hours, no faster than four hours and no longer than nine hours, the lower specification limit is four hours and the upper specification limit is nine hours with a range of five hours. A Cp of less than 1 is defined as not capable, Cp of 1.0 is barely capable and a Cp of 1.33 or larger is capable. The targeted value of Cp is defined by management based on the actual performance and the process history. To calculate Cp use the formula: Cp = USL - LSL 6
=
Cp= Cp= Cp=
2.5 inches USL - LSL 6 24 - 12 6 (2.5) 0.8
LSL = 12 inches
USL = 24 inches
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Comparison of Cp Based on Variation

A Curve
Cp=
USL - LSL 6
= 2.0 = 2.5
Cp= Cp=
24 - 12 6 (2.5) 0.8
B Curve
Cp= Cp=
24 - 12 6 (2.0) 1.0
LSL = 12
USL = 24
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= 1.5
Cp=
USL - LSL 6
B Curve
= 2.0 = 2.5
Cp= Cp=
24 - 12 6 (2.0) 1.0
A Curve C Curve
Cp= Cp=
24 - 12 6 (1.5) 1.33
Cp= Cp= B A
24 - 12 6 (2.5) 0.8
LSL = 12
USL = 24
Manufacturing of Transmissions
Mazdas Process
Fords Process
LSL
USL
The Japanese process used 30% of the engineered specification, while the US process used 70%. Both were within specifications. However, the warranty costs of the Japanese process were 1/3 lower, and manufacturing costs were also lower. Other improvements were transmission noise, assembly costs, maintenance costs, scrap, and inspection costs. (The Deming Route to Quality and Productivity. Scherkenbach, Cee Press, 1986.)
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Process Capability Assessment Cpk

Cpk is the measure of the process performance not only against the customer specifications but it also takes into account the location of the process average. Cpk is considered a measure of the process capability and is taken as the smaller of either the lower specification limit as compared to the process average or the upper specification limit as compared to the process average. The calculation helps to define if the process is in the center of the customer requirements. The measurement requirements are the same as Cp.
Center of Process 18 inches
1.5 3
Cpk = X bar - Nearest Spec Cpk = 20 - 24

3 (1.5)
Cpk = .89
LSL = 12 inches
x bar = 20 inches USL = 24 inches
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Process Average
The example below shows the process average in the center of the customer requirements and therefore indicates the center of the Specification Limits. In this case, the Nearest Specification is both the Upper and Lower Specification limits. If the CPK is equal to or greater than 1.33, the process is said to be capable.
1.5 3
Cpk = X bar - Nearest Spec Cpk = 18 - 24

3 (1.5)
Cpk = 1.33
x bar = 18 inches LSL = 12 USL = 24
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Process Capability Assessment
Process in Control
Histogram
Is it within spec?
No
Is it capable?
No
Process in Control and Capable
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99.9997% quality NOW 99.7% quality MOTOROLA 6-SIGMA
3
LSL
3 USL Mon/Var - 30
Why did Motorola insist on 6?
If a product has 1000 parts, each at 99.7% good, what % of the final products would be good? Compute: .997 Yx 1000 = ________. As opposed to 1000 parts, each at 99.9997? Compute: .999997 Yx 1000 = ________.
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Measurement System Analysis

Before we spend the time and effort to assess the capability of a process, we need to ensure that the measuring devices that are being used are capable. If the measuring system isnt capable, we could be accepting defective product or rejecting conforming product.
For variables data, we are concerned about: The measuring device The operators performing the measurement The method used to make the measurement
For attribute data, we are concerned about: The operators performing the measurement The method used to make the measurement The criteria used to judge the results
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Sources of Variation
To address observed variation, the variation due to the measurement system must be identified first and then separated from the actual process variation.
Observed Variation
Actual Process Variation
Measurement Variation
Long Term Process Variation
Variation due to Instrument
Variation due to Operator
Short Term Process Variation
Repeatability
Within
Calibration
Between
Stability
Linearity
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Sources of Variation
The sources of variation include:
Variation due to the instrument, including: o o o o o o o o o Mechanical instability of the device Electrical instability of the device Temperature changes of the device Changes due to use of the device (wear) Software instability within the instrument Calibration frequency Maintenance of standards for primary and secondary calibration Repeatability of the device Stability of the device
Variation due to operator, including: o Operator skill / training o Operator utilization of the work method o Operator to operator skill and work method
Additional variation includes: o Environmental Fluctuations in ambient temperature Fluctuations in humidity Variations in current supplied to the device Cleanliness Vibration
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Precision and Accuracy

Measurement system errors can be classified into two categories: accuracy and precision.
Accuracy describes the difference between the measurement and the actual value of the part that is measured. Precision describes the variation that is observed when the same part is measured repeatedly with the same device.
Within any measurement system, one or both of these problems can exist. For example, you can have a device that which measures the parts precisely there is very little variation in the measurements but not accurately. You can also have a device that is accurate the average of the measurements is very close to the actual value but not precise the measurements have a large variance.
Accurate and Precise
Precise But Not Accurate
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Neither Accurate or Precise
Precision or measurement variation, is a function of repeatability and reproducibility. We must have both in order to have a capable measurement system. Precision can be broken into two components: Repeatability the variation due to the measuring device it is the variation that is observed when the same operator measures the same part repeatedly with the same device. Reproducibility the variation due to the measurement system it is the variation that is observed when different operators measure the same parts using the same device.
Repeatable But Not Reproducible
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Not Repeatable and Not Reproducible
Repeatable and Reproducible
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Performing a Gage R&R Study

Variables Data 1. Obtain the calibrated measuring device. 2. Operator 1 measures all the samples in a random order. 3. Operator 2 measures all the samples in a random order. 4. Continue until all operators have measured the samples once this is Trial 1. 5. Repeat steps 2 3 4 for the required number of trials. 6. Input the data into Minitab. 7. Analyze the results and determine the capability and any follow up actions.
Attribute Data 1. Select 3 or more operators. 2. Each operator measures 10 samples per trial. 3. Complete 2 trials. 4. Expert results are compiled. 5. Input the data into Minitab. 6. Analyze the results and determine the capability and any follow up actions.
For more comprehensive information refer to Measurement Systems Analysis available through the AIAG (Automotive Industry Action Group) [ www.aiag.org ].
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Example Minitab Results
Gage R&R (Xbar/R) for Response

Components of Variation
100 %Contribution %Study Var 1.1 1.0 0.9 0.8 0.7 0.6 0.5 0.4 Gage R&R Repeat Reprod Part-to-Part
Gage name: Date of study : Reported by : Tolerance: Misc:
Response by Part
P e rc e n t
50
Part
1.1 1.0 0.9 0.8 0.7 R=0.03833 LCL=0 0.6 0.5 0.4
10
R Chart by Operator
0.15
1 2 3
Response by Operator
UCL=0.1252
S a m p le R a n g e
0.10 0.05 0.00
Operator
Xbar Chart by Operator

1.1 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3
1 2 3
Operator*Part Interaction
1.1 UCL=0.8796 Mean=0.8075 LCL=0.7354 1.0 0.9 0.8 0.7 0.6 0.5 0.4
Operator
1 2 3
S a m p le M e a n
A v e ra g e
Part
10
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Interpreting the Minitab Charts
In the component of variation chart, we are looking for a total Gage R&R of less than 10%. The repeatability bar is the variation associated with the measuring device. The reproducibility bar is the variation associated with the operator. Each point on the R Chart by Operator is the range of the 3 measurements on the same part by the same operator. Repeatability is the variation observed when the same operator measures the same part repeatedly using the same measuring device. When you evaluate the R Chart by Operator you are looking for stability all the measurements should be below the UCL. When all the points are within the control limits it is an indication that the measurement system is stable. The X-bar Chart by Operator measures the part variation vs. the measurement error. The distance between the upper and lower control limits represents the measurement error. We are looking for this chart to be out of control because this means that there is more between group variation than within group variation. For the Response by Part Chart, we are looking for a relatively small dispersion. We can then determine if one of the parts is harder to measure than the others. For the Response by Operator Chart, we are looking for at parts, by all operators so we are looking for a flat line. For the Operator Part Interaction Chart we are looking for a tight clustering of the data.
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Minitab Summary Chart
Gage R & R for Response
Source
Variance
% Contribution (of Variance) 6.33 3.51 2.82 93.67 100.00
Total Gage R & R Repeatability Reproducibility Part-to-Part Total Variation
2.08E-03 1.15E-03 9.29E-04 3.08E-02 3.29E-02
Number of distinct categories = 5
The number of distinct categories must be 5 or greater. The lower the total Gage R&R, the higher this value. We are looking for a Total Gage R&R less than 10%.
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GLOSSARY
Glossary
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WORD / PHRASE
DEFINITION
Affinity Diagram A management tool that assists with general planning. It makes disparate language information understandable by placing it on cards and grouping the cards together in a creative manner. "Header" cards are used to summarize each group. Alpha The maximum risk or probability of making a Type I Error. This probability is always greater than zero and is usually established at 5%. The researcher makes the decisions to the greatest level of risk that is acceptable for a rejection of Ho. Alternate Hypothesis A statement of change or difference. This statement is considered true if Ho is rejected. Analysis of Variance Hypothesis test used to analyze the difference in means between two (ANOVA) or more samples. APQP Advanced Product Quality Planning. A sequenced process utilized to improve the design and implementation of products and processes to meet and exceed customer requirements. Assignable Cause The name for the source of variation in a process that is not due to chance and therefore can be identified and eliminated. Autonomation Automation with a human touch (jidoka). The second of two major pillars of the Toyota Production System. (The first pillar is just-in-time production.) Baseline The current operating performance of a process. Used to characterize the starting point for improvement measurements. BDP / SDP Best Developed Practice / Successfully Developed Practice: Both refer to internal or external benchmarks, which serve as examples of improved processes for other locations to adopt. Benchmarking The process of finding and adapting best practices to improve organizational performance. Best Practice A superior method or innovative practice that contributes to improved performance. Beta The risk or probability of making a Type II Error, or overlooking an effective treatment or solution to the problem. Bi-modal Distribution A frequency distribution that has multiple modes. The histogram of a bimodal distribution would have two humps.
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GLOSSARY
WORD / PHRASE
DEFINITION
Black Belt A process improvement project team leader who is trained and certified in the principles and practices of Six Sigma methodology and tools, and who is responsible for project execution. Bottleneck A situation that delays work on a product or service at a process step; often resulting in a queue, delay, or excess inventory in front of the (Constraint) bottleneck. (Also called a constraint.) Boxplot A graphic summary of a distribution where the overall dispersion and the central tendency or mean of the data are highlighted (Arturo Onnias) Brainstorming An idea-generating technique that uses group interaction to generate many ideas in a short time period. Ideas are solicited in a nonjudgmental, unrestricted manner from all members of a group. Breakthrough, Factory Implementing the Focused Area Improvement Event (FAIE) concepts throughout an entire factory to achieve the benefits of a large-scale transformation of the factory. Buffer Inventory Finished goods available to meet variations in customer demand due to fluctuations in ordering patterns or takt time. Also known as buffer stock or safety stock. Business Process A group of related processes which work together to deliver an outcome. BVA Business Value Added A process that the business requires to stay in business but that is not a requirement for an external customer. Capability The total range of inherent variation in a stable process. It is determined using data from control charts or as a result of a process capability study. Capability Index A calculated value used to compare process variation to a specification. Examples are Cp, Cpk. Can also be used to compare processes to each other. Capacity-Productivity and These are metrics related to how well plants utilize their investments in Capacity-Utilization equipment.
st st C-P, C-U C-P = Current 1 Quality Output / Baseline 1 Quality Output st st C-U = Current 1 Quality 1 Time / Maximum Theoretical Rate
Cause and Effect Matrix Prioritization matrix used to assist in focusing in on the root causes of process problems.
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WORD / PHRASE
DEFINITION
CDOV Concept Development; Design Product and Process; Optimization; Verification the disciplined process for managing Design for Six Sigma projects. (CDOC) Concept, Design, Optimize, Control: Another version of the Design process. Central Tendency The tendency of data gathered from a process to cluster toward a middle value, somewhere between the high and low values of measurement. Champion A business leader who facilitates the leadership, implementation, and deployment of the Six Sigma Operational Excellence process. Changeover Time The time required for a specific machine, assembly line, or work center to convert from production of one specific item to another. The time is elapsed time from production of the last unit of Item B until production of the first GOOD unit of Item A. Also, changeover is a term for downtime of the production process for this purpose. Charter A written commitment by management stating the scope of authority for an improvement group. Resources, including time and money, are specifically addressed. Checksheet A form for recording data on which the number of occurrences of an event can be recorded as ticks or checks. Common Cause A source of process variation that is inherent to the process and is common to all the data. Common Cause Variation Variation due to random events that affect a process at all times. (e.g. normal temperature changes) This type of variation is a normal part of the system. Confidence Interval An interval that can be said, with X% certainty, to contain the true process mean or standard deviation. We are 95% confident that the true process mean is in this interval. Conformance The output meets all of the agreed-upon customer requirements. Consensus A state where everyone agrees to support a decision even if they dont totally agree. Anyone who retains strong disagreement can veto the decision. Continuous Flow The ideal state characterized by the ability to replenish a single part that has been "pulled" downstream. In practice, continuous flow is synonymous with just-in-time (JIT) production, which ensures that both internal and external customers receive only what is needed, just when it is needed, and in the exact quantities needed.
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GLOSSARY
WORD / PHRASE
DEFINITION
Continuous Improvement A disciplined approach to ensure the ongoing improvement of a process to achieve higher customer satisfaction and efficiency. It relies on effective use of quality tools and processes. Also known as KAIZEN Control Chart A graphical display of the performance of a characteristic over time in relation to the natural process limits. Control Limits "Defines natural boundaries of a process within specified confidence levels" [upper control limit (UCL), and lower control limit (LCL) defined on a control chart]. (J. R. Russell) Control Plan Process documentation that describes the system for controlling processes and product. Cost of Conformance The cost of making sure customer requirements are met. (e.g. inspection, audits) Cost of Non-Conformance What it costs not to meet customer or process requirements. It includes both failing to meet requirements (rework) and exceeding requirements (excess inventory). Cost of Poor Quality (COPQ) The cost of failing to produce and deliver 100% quality to our customers. does not include costs of monitoring quality, such as inspection and auditing costs. Cost associated with poor quality products or services. Examples: Product inspection, Sorting, Scrap, Rework, and Field Complaints. Cost of Quality A measure of the efficiency of our quality-related activities. It is the sum of the cost of conformance, the cost of non-conformance, and lost opportunity costs. CP Process Capability compares the customers expectation to the process variation.
USL LSL 6
CPK Process Capability with mean compared to nearest specification limit:
X-bar nearest spec limit 3

Critical Process Input The vital few process input variables that have the greatest effect on Variable the output variable(s) of interest. They are called Xs, normally 2 6 true critical variables. Critical To Quality A condition that must be met in order for the process or product to (CTQ) satisfy the most important customer requirements. (Critical Characteristic)
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WORD / PHRASE
DEFINITION
Customer The person or persons who receive the product or service that you or your group produces or performs. Customers can be internal (within the corporation) or external (outside of the corporation). Customer Requirements What the customer needs, wants, and expects of the output. The customer and supplier typically negotiate and agree upon these requirements. Customer Value Added A process step that the customer requires and is willing to pay for. (CVA) Cycle Time The time required to perform an activity or step in a process. It includes value-added and non-value-added time such as for order preparation, queuing, receiving, inspection, and transport. Throughput (To) Throughput time (total process cycle time) is the time is takes materials (or information) to flow through all process steps. For a business process, it is the time it takes from the customer's request to delivery of the product or service. Throughput ( T or Th ) Throughput is also sometimes used to describe the output rate of a production process, or average output in pieces per unit of time. Compare this to takt time or the rate of customer demand. Defect Any characteristic that deviates outside of specification limits or customer requirements. Defect Opportunity One of many possible defects on a single item or part that would render the part defective. Defective Any unit with one or more defects. See also Defect. Design FMEA An analytical technique used by a design responsible engineer/team as (Failure Mode Effect a means to assure, to the extent possible, that potential failure modes Analysis) and their associated causes/mechanisms have been considered and addressed. Design for Assembly A tool used to assist the design team in the design of products that will transition to production at a minimum cost, focusing on the number of parts, handling and ease of assembly. Design for Manufacturability A simultaneous engineering process designed to optimize the (DFM) relationship between design function, manufacturability, and ease of assembly.
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GLOSSARY
WORD / PHRASE
DEFINITION
Design of Experiments A method for testing and optimizing a process. DOE uses a planned (DOE) experiment to control input variables and measure their effect on output variables. It uses an experiment rather than real-world data. Statistically planned experiments may be used for confirmation of the effect of KPIVs from FMEA and/or multi-vari studies. Design Validation Testing to ensure that product conforms to defined user needs and/or requirements. Design validation follows successful design verification and is normally performed on the final product under defined operating conditions. Multiple validations may be performed if there are different intended uses. Design verification Testing to ensure that all design outputs meet design input requirements. DMAIC Define, Measure, Analyze, Improve, Control the disciplined methodology utilized to manage Six Sigma projects on existing processes which need breakthrough improvement. DMADV and DMADVI Other versions of the improvement process: Define, Measure, Analyze, Design, Validate and DMA + Verify and Implement. DOTWIMP The Seven Wastes: Defects, Overproduction, Transportation, Waiting, Inventory, Motion, Processing.
Waste #8 is Unused Employee Creativity

DPMO Defects per Million Opportunities DPU Defects per Unit Entitlement The optimal performance than can be achieved by a process. How the process would operate if it was centered and did not drift. Error-Proof Mistake-proofing techniques, designed in a way to prevent an error from resulting in a product defect. For example, in an assembly operation, if each component part is not used, a sensing device detects a part was unused and shuts down the operation, thereby preventing the assembler from moving the incomplete assembly on to the next station or beginning another one. Also known as fail-safe, mistake proofing, or Poka-Yoke. Evolutionary Operations Continuous on-line process improvement by operators. (EVOP)
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WORD / PHRASE
DEFINITION
Failure Modes and Effects A tool for linking failure modes to cause and effect so that predictions Analysis (FMEA) can be made on how things can fail, what the effect of the failure will be, how often the failure will occur, how severe the failure will be and how well the failure can be detected in order to install controls to reduce the occurrence of producing unacceptable product. Also assists with the prioritization of improvement efforts. Feasibility A determination that a process, design, procedure, or plan can be successfully accomplished in the required time frame. First Pass Yield The percentage of products or services that are successfully completed (FPY) on the first attempt without requiring remedial action or rework. Five Whys Root cause discovery technique by repeatedly asking Why? ( 5 Whys ) Flow The movement of material or information. Manufacturing businesses are successful to the extent that they are able to move material and information with as few disruptions as possible preferably none. Flowchart A pictorial representation of the inputs, activities, sequence, decision points, and outputs within a work process. Focused Area Improvement Implementing the concepts of standard work in selective areas, to Event (FAIE) improve product flow, reduce inventory, reduce scrap, improve throughput and increase employee involvement by analyzing and then redefining the work that is required to perform the process. Gage Bias The difference between the observed average of multiple measurements of the identical characteristic on the same part and the true average. Also known as Gage Accuracy. Gage Repeatability The variation in measurements obtained with one measurement instrument when used several times by one individual while measuring the identical characteristic on the same part. Gage Reproducibility The variation in the average of the measurements made by different individuals using the same measuring device when measuring the identical characteristic on the same part. Gap Analysis The comparison of a current condition to the desired state. Green Belt A member of Six Sigma project team who leads less complex improvement initiatives or who provides technical assistance to a Black Belt. Histogram A graphic way of summarizing data by plotting possible values on one axis and the observed frequencies for those values on the other axis. It helps one visualize the central tendency and of the data.
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GLOSSARY
WORD / PHRASE
DEFINITION
House of Quality A product-planning matrix developed during quality function deployment that shows the relationship of customer requirements to the means of achieving these requirements. The matrix indicates the impact each of the means has on one another. Hypothesis Testing A way of analyzing data, particularly from DOEs, that tries to determine if results observed are statistically significant, as opposed to being the results of random variation. I & MR Chart Individuals and Moving Range Chart: A type of variables control chart based on individual measurements. Input A product or service coming into your process that you act upon. I/O = Input/Output Inputs can be material or information. ISO International Standards Organization. ISO 9000, ISO 9001, etc are standards for quality and business processes. Jidoka The use of automation to mistake-proof the detection of defects and free up workers to perform multiple tasks and to promote flow. Just-in-time Production Refer to continuous flow. JIT Kaizen Small daily improvements performed by everyone. Kai means take apart and zen means make good. The point of kaizen implementation is the total elimination of waste. Kanban A method of Just-in-Time production that uses standard containers or lot sizes with a single card attached to each. It is a pull system in which work centers signal that they wish to withdraw parts from feeding operations or suppliers. Kanban, in Japanese, loosely translated means card, billboard, or sign. (Toyota Production System) Key Measurement A measurement that is determined to be critical to ensure the quality of the process output. Also refer to Critical To Quality. Key Process Input Variables The vital few process input variables that have the greatest effect on (KPIV) the output variable(s). They are called Xs, (normally there are 2 6) Key Process Output The output variable(s) of interest. They are called the Ys, (usually 1). Variables (KPOV) May be process performance measures or product characteristics. Lean Shorthand for Lean manufacturing a manufacturing paradigm based on the fundamental goal of the Toyota Production System: minimizing waste and maximizing flow. A series of tools and techniques that focus on process optimization through cycle time reduction and the elimination of waste.
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WORD / PHRASE
DEFINITION
Lean Design for Six Sigma A set of tools and best practices used within an existing product (LDFSS) development process to ensure the most effective product and process solution for meeting customer requirements. The tools and techniques systematically examine and streamline the entire Value Chain prior to released production. Line Balancing A process in which work elements are evenly distributed within a value stream to meet takt time. Load Leveling Also known as heijunka. Balancing the amount of work to be done (the load) during a shift with the capacity to complete the work. A heijunka system distributes work in proportions based on demand, factoring in volume and variety. Location Indicator A visual workplace element that shows where an item belongs. Lines, arrows, labels, and signboards are all examples of location indicators. Lost Opportunity Something lost due to lack of acceptable quality or performance. For example, profit not earned because of customers lost orders due to lack of quality. Customers include both current and potential. Manufacturing Process The defined way utilized to produce the physical product that must conform to a defined set of requirements. Master Black Belt A person who is expert in Six Sigma techniques and project implementation. Master Black Belts play a key role in mentoring, training and coaching Black Belts. Mean A measure of central tendency representing the arithmetic average of a set of observations. The sum of data divided by the number of observations or ( n / n = X-bar ) Measure A comparison of outputs against customer requirements to make sure they conform, and to find out how well the process is performing. Measurements are also taken while producing the product or service to prevent errors as early in the work process as possible. Measurement System The complete process used to obtain measurements. It consists of the collection of operations, procedures, gages and other equipment, software, and personnel used to assign a number or value to the (MSA) characteristic being measured. MSA = Measurement System Analysis Median The value of the point (datum) that has an equal number of points above and below it when all the data are arranged in order of magnitude. If two values fall in the middle, the median is the average of the two. It is a measure of central tendency. MINITAB The primary statistical software package used by the Six Sigma project teams.
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GLOSSARY
WORD / PHRASE
DEFINITION
Mode The value most often repeated in the data set. It is a central tendency measure represented by the highest point in the distribution curve or the histogram of a data set. Mu and Sigma Greek letters denoting the population average and the population ( and ) standard deviation. These are measures of central tendency and variability. Multi-vari Study A graphical and statistical method to depict variation in the KPOV as it relates to changes in multiple KPIVs. Variables include noise variables potentially causing variability in the process. The study of process inputs and outputs is completed in a passive mode (natural day-to-day process). Nominal Group Technique A version of brainstorming where individuals first write down their ideas, (NGT) then the facilitator asks for and posts input by going around the room getting one item per person until all ideas are posted. Only clarification questions are allowed, but no discussion until all ideas are posted. Non-Conformance The output does not meet all of the agreed-upon customer requirements. Non-Value Added A step in a process that takes time or resources, but does not contribute to achieving customer requirements or improved process efficiency. Normal Distribution A continuous, symmetrical, bell-shaped frequency distribution for variable data. Null Hypothesis A statement of no change or difference. This statement is assumed true until sufficient evidence is presented to reject it. If p is low, HO has to go. Operator (or Production) A visual display of the work elements, times, and operators at each Balance Chart location in a value stream. The operator balance chart is used to show improvement opportunities by visually displaying work operation times in relation to total cycle time and takt time. Out of Control Describes a process that has variations that fluctuate outside the computed control limits. This condition normally indicates the process is not operating as desired or that external factors have been introduced. A process "out of control" is not stable and therefore is not predictable. Output The product or service delivered by a process. It is sent to the customer of that process, and it becomes the input for the next process. p-value Test statistic used in Hypothesis testing. If p is low, Ho has to go.
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11
GLOSSARY
402-105
WORD / PHRASE
DEFINITION
Paced Withdrawal A method of leveling that involves moving small batches of material through the value stream over time intervals equal to the pitch. Pack-out Quantity A small batch equal to the number of units or parts that can be moved throughout the value stream to ensure an efficient flow. Pack-out quantity may or may not be customer driven. Parallel Placement or Two different steps in the same process, taking place at the same time. Processing Also known as concurrent processing. Pareto Chart A statistical method of measurement to identify the most important problems through different measurement scales; e.g., frequency, cost, etc. It directs attention and efforts to the most significant problems. Paynter Chart A modified Pareto Chart. The bars of the chart representing the items, defect, etc. of interest are broken down further based on additional criteria, such as day, shift, line, etc. The Paynter Chart is another way of displaying the information provided by a Second Level Pareto Chart. PDCA Plan, Do, Check, Act. The method or sequence of actions used to identify and plan important accomplishments and changes that are desirable. Also known as the Deming Wheel or the Shewhart Cycle. PDSA PDSA is another version: Plan, Do, Study, Act Pitch The amount of time (based on takt) required for an upstream operation to release a predetermined pack-out quantity of WIP to a downstream operation. Pitch is therefore the product of the takt time and the packout quantity. POKA-YOKE Refer to error-proof. Precision to Tolerance Ratio The ratio of what percent measurement error takes up as a percent of P/T ratio the tolerance of specification limits. Population The universe of all possible numbers that can be considered the same in some sense. Prevention A quality assurance strategy that attempts to identify and correct unacceptable service or product characteristics during the design, development or production phases. Probability The chance of an event happening or a condition occurring in a random trial. Procedure Sheet A detailed description of process steps, usually the next level of detail documentation after flowcharting or mapping a process.
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402-105
GLOSSARY
WORD / PHRASE
DEFINITION
Process The defined way by which all work gets completed. Consists of an activity or group of activities that takes an input, adds value and provides an output. There are two types of processes: manufacturing and transactional. Process Boundary The natural or defined limits of a process. Boundaries are defined with concise descriptions of the processs suppliers, inputs, outputs, customers and customers requirements. Process Control The practice of monitoring the performance of a process to determine when the performance drifts beyond a certain threshold so that actions can be taken to re-establish the process within the established boundaries. Process in Control A process is in control when variation of the process output is due to random (common) causes only. At this point it is considered to be stable, but it will have random or normal variation. (Contrast with process capability which is related to whether the process falls within specification limits or customer requirements.) Process Map
A step-by-step pictorial sequence of a process showing process inputs, process outputs, cycle time, rework operations, and inspection points.
Process Output Variable The outputs of interest, sometimes referred to as the customer requirements. They are called the Ys, (usually 1). May be process performance measures or product characteristics. Process Owner Coordinates the functions and work activities at all levels of the process. Has the authority to make changes in the process as required and manages the process end-to-end to ensure optimal output production. Process Spread The extent to which the distribution of individual values of the process characteristic (input or output variable) vary; often shown as the process average plus and minus some number of standard deviations. Other related measures of spread include the range, and variance. Process Time The time during which the material is being changed, whether it is a machining operation or a manual operation. Process time per piece is: (setup time/lot size) + run time per piece. Product Family A group of parts that share common equipment and similar routing. Project Charter A summary of why the Six Sigma project is being completed, the identification of the project boundaries and the measures of success. This is essentially the blueprint of how the project will proceed.
Rev. G
13
GLOSSARY
402-105
WORD / PHRASE
DEFINITION
Quality Quality means conformance to customer requirements, internal and external. Quality Function Deployment A model that transfers customer requirements into product and process (QFD) characteristics and to manufacturing procedures so that our products satisfy our customers. Queue Time Non-value added waiting time before the product or service enters the next activity in the process. Range A measure of dispersion, representing the difference between the highest and the lowest values in the data set. Repeatability and Repeatability: The variation in measurements obtained with one Reproducibility measurement instrument when used several times by one appraiser while measuring the identical characteristic on the same part.
Reproducibility: The variation in the average of the measurements made by different appraisers using the same measuring instrument when measuring the identical characteristic on the same part.
Response Surface Methods Method for using DOE to optimize process parameter settings. Allows for fine process adjustment for ultimate optimization. Risk Priority Number Metric used in FMEA to quantify risk. Calculated by multiplying the Severity of the Effect, the probability of Occurrence of the Failure and the ability to Detect the Failure. RPN = S x O x D Robust Immune to outside influences. A measurement that can truly assess how the process is performing. Rolled Throughput Yield The probability of being able to pass a unit or product or service (RTY) through the entire process defect free. The multiplication of all individual first pass yields of each step of the entire process (1st quality, 1st time through). Calculations for each step of the process should be based on theoretical yields and should view all waste as defects. Should be calculated on a product-by-product basis. Runner A worker who ensures that pitch is maintained. The runner covers a designated route within the pitch period, picking up kanban cards, tooling, and components, and delivering them to their appropriate places. Safety inventory Finished goods or work-in-process inventory available to meet customer demand when internal constraints or inefficiencies disrupt process flow. Also known as safety stock.
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402-105
GLOSSARY
WORD / PHRASE
DEFINITION
Sample The particular collection from a population from which data is gathered, rather than using the entire population. Data from random samples have the same characteristics as the population with a statistically determined level of confidence. Safety, Purpose, Agenda, Meeting effectiveness technique. Every meeting should begin with Code of Conduct, review of safety procedures, meeting purpose, agenda, meeting code Expectations and Rolls of conduct, meeting expectations and meeting roles. SBTI Sigma Breakthrough Technologies, Inc. Tyco consulting partner for Six Sigma Deployment Serial Placement Only one process step taking place at one time on a product or service. (Processing) Short Term Capability Determines variation in the process, assesses ability to meet specifications and permits short, intermediate, and long term goal setting. SIPOC Map Suppliers Single page process map that shows the scope of the process your Inputs Process project is examining. Outputs Customers Six Sigma The process mean is 6 process standard deviations from nearest specification limit. ( CPK = 2.0 ) SMED Acronym for single minute exchange of dies. (See Changeover time) Special Cause Variation Variation that is due to an identifiable, out-of-the-ordinary event. It is not a usual part of the process. Specification The engineering requirement or customer requirement for judging acceptability of a particular characteristic for a product or process. Standard Deviation () Sample Standard Deviation (s) Standard Operating Procedures (SOP)
A measure of dispersion, representing how close or how far single values are from the mean. Documented and controlled description of the approved standard method for a process.
Standard Work An agreed-upon set of work procedures that establishes the best method and sequence for each manufacturing or assembly process. Standardized work is implemented to maximize human and machine efficiency while simultaneously ensuring safe conditions. Statistical Control The condition describing a process from which all special or assignable causes of variation have been eliminated and only common or random causes remain. Applies to both the mean (location) and standard deviation (spread).
Rev. G
15
GLOSSARY
402-105
WORD / PHRASE
DEFINITION
Statistical Process Control Method of using control charting to manage a process. (SPC) Storyboard Technique to graphically display the methodology used and progress made by a process action team; a board, specifically designated to display information. Sub-process Internal, subordinate processes that make up a larger process. Supermarket A system used to store a set level of finished-goods inventory or WIP and replenish what is "pulled" to fulfill customer orders (internal and external); ideally to the point that it is possible to achieve one-piece flow based on takt time. Supplier The person or group responsible for providing inputs to a process or customer. System An interdependent group of tasks working together to produce an output. An organized or established procedure. Takt Time The "beat" of customer demand the time required between completion of successive units of end product. Takt time determines how fast a process needs to run to meet customer demand. Takt time is calculated by dividing the total time available for production by the total customer requirement. Theory of Constraints A management philosophy that focuses the organizations scarce resources on improving the performance of the true constraint, and therefore the bottom line of the organization. Total Cycle Time The total of the cycle times for each individual operation or cell in a value stream. Total product cycle time includes both value-added and Throughput (To) non-value-added times. Lean techniques reduce the non-value-added times. (See also Cycle Time) Total Employee Involvement An improvement strategy in which employees are invited to participate (TEI) in actions and decision-making that were traditionally reserved for management. Total Productive Maintenance Preventive maintenance plus continuing efforts to adapt, modify, and (TPM) refine equipment to increase flexibility, reduce material handling, and promote continuous flow. It is operator-oriented maintenance with the involvement of qualified employees in all maintenance activities. The goal of TPM is zero unplanned down-time. Transactional Process All non-manufacturing processes, for example: shipping, logistics, design, accounts payable, information technology.
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GLOSSARY
WORD / PHRASE
DEFINITION
Upper Control Limit, Limits determined by the process beyond which we rarely expect to see Lower Control Limit: data if the process is operated on target and in control. Usually these (UCL, LCL) are set at 3 about the process target. For normally distributed data these limits include 99.7% of the observations. Upper Specification Limit, Limits set by the downstream customer, internal or external, beyond Lower Specification Limit which we should not operate the process. (USL, LSL) Utilization Utilization of any workstation, capital, process or line is usually defined as percent of time running divided by available time to run. Value Stream A collection of all the steps (both value-added and non-value added) (Value Chain) involved in bringing a product or group of products from raw material to finished products accepted by a customer. Value Stream Managements goal is to minimize the waste that prevents a smooth, continuous flow of product throughout the value stream. Value Stream Mapping A macro-chart of the material and information flow of a specific product family. It also includes key metrics such as lead time, cycle time, takt time, utilization, WIP inventory, and action plans. Also know as value stream process mapping. Value-Added For an action or step to be value-adding, it must meet all three of these criteria: 1. Contributes to usefulness in the eyes of the customer, 2. Physically changes the product or service, 3. Done right the first time. Value-Added Management The objective of Value-Added Management is to eliminate all nonvalue-added activities in producing and providing a good or service. (It is synonymous with Lean Manufacturing/Management) Value-Added Time The time or percent of total process time which adds value. Processes are typically less than 5%. Variables Control Chart A process control chart for a characteristic or parameter that has continuous values rather than discrete values such as counts. Variation The difference between individual measurements. Differences are attributed to common and/or special causes. Variation: Common Cause The variability introduced to a process that may not be controllable by the operator and may require outside assistance to reduce in size. Variation: Special Cause The variability introduced to a process that should be controllable by the operator of the process. Voice of the Business Business requirements
Rev. G
17
GLOSSARY
402-105
WORD / PHRASE
DEFINITION
Voice of the Customer Data collected from the customer that tells you what the customer wants. Voice of the Process Data and facts that tell you what the process is doing. Waste Anything within a value stream that adds cost or time without adding value. The seven most common wastes are 1) Over-production, 2) Waiting, 3) Transport, 4) Processing, 5) Inventory, 6) Motion, and 7) Defects and spoilage. Also know as muda. Work Cells U-shaped and other designs providing a process flow that allows the best combination of balanced product flow, worker productivity and ergonomics, minimal WIP inventory, and output. Work in Process The inventory between the start and end points of a production process or series of processes necessary to produce a finished good. Work Process A set of interrelated activities that are characterized by a set of specific inputs and value added tasks that produce a specific output. X Process Inputs or Input Variables Y Process Output, the thing delivered to the customer, or its measure such as the percent defects.
References:
Value Stream Management by Tapping, Luyster, and Shuker. Productivity Press, New York, 2002. LBE Reference Guide by AMP, Incorporated. Harrisburg, Pa, 1997
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Rev. G

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402-105

QUALITY TOOLS AND STATISTICS REFERENCE GUIDE

TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS

TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS

TYCO ELECTRONICS 8D Reactive Problem Solving Process

TYCO ELECTRONICS Reactive Problem Solving Process

When to use it?

__________________________________________________________________________________________________ Rev. G Six Sigma Operational Excellence 1

TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS

Reactive Problem Solving or Proactive Continuous Improvement: Which One?

Successful Gap Closure

ACT PDCA CHECK

__________________________________________________________________________________________________ 2 Six Sigma Operational Excellence Rev. G

TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS

__________________________________________________________________________________________________ Rev. G Six Sigma Operational Excellence 3

TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS

TYCO ELECTRONICS Reactive Problem Solving Process (8D) Overview

8 1 Celebrate and Define concern, Communicate Organize and Success Plan

6 Implement & Verify Corrective 5 Action Develop Corrective Action Plan

Problem Solving Process (8D)

2 Describe Opportunity/ Problem 3 Contain Problem

__________________________________________________________________________________________________ 4 Six Sigma Operational Excellence Rev. G

4 Identify & Verify Root Causes

TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS

TYCO ELECTRONICS Reactive Problem Solving Process (8D)

4. Identify and Verify Root Causes

5. Develop Corrective Action Plan

__________________________________________________________________________________________________ Rev. G Six Sigma Operational Excellence 5

TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS

Root cause(s) identified and verified. Potential corrective actions/solutions clarified.

__________________________________________________________________________________________________ 6 Six Sigma Operational Excellence Rev. G

TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS

TYCO ELECTRONICS Reactive Problem Solving Process (8D)

7. Prevent Recurrence 8. Celebrate and Communicate Success

__________________________________________________________________________________________________ Rev. G Six Sigma Operational Excellence 7

TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS

Define Concern, Organize and Plan

8 1 Celebrate and Define concern, Communicate Organize and Success Plan

6 Implement & Verify Corrective 5 Action Develop Corrective Action Plan

Problem Solving Process (8D)

2 Describe Opportunity/ Problem 3 Contain Problem

__________________________________________________________________________________________________ 8 Six Sigma Operational Excellence Rev. G

4 Identify & Verify Root Causes

TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS

Ideas about problem

__________________________________________________________________________________________________ Rev. G Six Sigma Operational Excellence 9

TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS

Forming a Problem Solving Team

Charter: Key operating boundaries

__________________________________________________________________________________________________ 10 Six Sigma Operational Excellence Rev. G

TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS

For generating ideas

For making decisions/reaching consensus

For documenting processes/planning action

8D Step 1: Organize and Plan

6 Implement & Verify Corrective 5 Action Develop Corrective Action Plan

Problem Solving Process (8D)

4 Identify & Verify Root Causes

__________________________________________________________________________________________________ Rev. G Six Sigma Operational Excellence 11

TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS

Describe the Opportunity/Problem

8 1 Celebrate and Define concern, Communicate Organize and Success Plan

6 Implement & Verify Corrective 5 Action Develop Corrective Action Plan

Problem Solving Process (8D)