Six Sigma DMAIC Training (excerpts)

Presenter: Bruce Berger (386) 852-9054 BergerConsulting@aol.com

Six Sigma Overview Why do we need Six Sigma? Six Sigma is a proven methodology that will help us improve our work in order to consistently ensure

Our products and services meet (or exceed) customers needs

Our Processes are cost-effective

DBS employees are well-trained and motivated

State and federal statutory requirements are met

Six Sigma Overview

What is Six Sigma?

A philosophy for systematically improving quality,

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

Six Sigma Overview Six Sigma is all about 1) Providing Customer Satisfaction through the total involvement of ALL employees
2)Or put another way Making Line Graphs move in the direction you want them to go.
Customer Satisfaction
GOOD

Target

Year

Line Graphs Help Us Understand Our Performance

Six Sigma Overview

We know were Successful when
% Customer Satisfaction

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

% Customer Satisfaction
GOOD

95%

92%

95%

96%

Target = 80%

Q3 04

Q4 04

Q1 05

Q2 05

Our Services are Delivered On-Time. Our costs for doing business are the lowest possible. Our Employees are efficient.

Six Sigma Overview Moving line graphs requires efforts in three (3) areas
Strategic planning helps us focus on key projects to reach our Vision.
Strategic Planning

Process Management helps us maintain good results as we perform our Mission.

Six Sigma
Process Improvement

Process Management

Process Improvement using the DMAIC process helps us fix work problems and improve our Performance.

To be successful as an organization, we must learn how to effectively apply ALL three (3) areas. Todays training will overview the DMAIC process.

DMAIC Overview Process Improvement utilizes a 5 step problem solving DMAIC process:
1) Define
2) Measure

DMAIC 5 Steps
1. Define
Display Problem ... Checksheet or Spreadsheet
OUTCOME WHERE

2. Measure
Stratify Problem ... Histogram n=63 Standard
GAP

Line Graph
GOOD

Pareto n=21

WHEN

WHAT

WHO

Target

21 Late

Month

PROBLEM STATEMENT

3. Analyze
Identify & Verify Root Cause ... Single Case Bore Contingency Table
FISHBONE
REASON/ FACTOR

4. Improve
PROBLEM STATEMENT E F F E C T ROOT CAUSE A
ACTN?

Identify & Implement Countermeasures ... Countermeasures Matrix

CM A1 A2 C1 C2
OVRL FEAS EFF

CASE 1 2 3 4 5

Ca

us

Ef fec e

Problem

No Problem 3

3 4 5 3

2 4 4 1

6 16 20 3

N Y Y N

A Present A Absent

35

A B C

4 Scatter Diagram

25

3) Analyze
4) Improve
% GOOD

Action Plan
BARRIERS High A1a AIDS A1b HOW 1. Dev 2. Impl WHO WHEN

Effect

Cause "C"

4. Results Improve
CM IMPL'M

5. Control Standardization
CONTROL CHARTS

Future Plans
LESSONS LEARNED

Target

FLOW CHART

WHAT'S NEXT?

5) Control

Before n=21

After Effect Overall

n=10

DMAIC Overview Step 1: Define The objective of step 1 is to Demonstrate the importance of improvement needs in measurable terms.
1.Define
Display Problem ... Checksheet or Spreadsheet Line Graph

OUTCOME

GOOD

WHERE

WHEN

WHAT

WHO

Target
GAP

Month

Lets look more closely at the two important tools used in Define.
Define Measure Analyze Improve Control

Step 1: Define - Spreadsheet Tool

Process Status Summary
Line #
WHAT 1 2 DEMOGRAPHICS WHERE WHEN WHO MILESTONES DURATION OUTCOME

MS Excel is used to construct unique spreadsheets to record

data for analysis Spreadsheets segment information into four key sections:
Demographics (contain who, what, where or when--information about the

process) Milestone Dates (key completion dates/times of steps in the process) Durations (Performance Results calculated from the milestone dates automatically) Outcomes (Performance results of the process)

Data collection can be either manual or downloaded from

existing systems Can be used for ongoing monitoring of process performance after the project is completed

Step 1: Define - Line Graph Tool

GOOD

% Customer Satisfaction

95%

92%

95%

96%

Gap
Target = 80%

Q3 04

Q4 04

Q1 05

Q2 05

Used to display performance trends Relates performance to a target that is established by either

customers or the business Displays the Gap between the observed performance and the target

DMAIC Overview Step 2: Measure

The objective of step 2 is to Investigate the features of the indicator, stratify the problem and set a target for improvement.
2. Measure
Stratify Problem ... Histogram n=63 Standard n=21 Pareto

21 Late

PROBLEM STATEMENT

Lets look more closely at two important tools used in Step 2: Measure

Step 2: Measure Histogram Tool

Customer Service Document Requests Between Week 31 and Week 38 that Were Delivered Late
120 USL=0.5 hours _ x n = 162 (2 outilers of 79 and 64 hours not shown) mean = 7.139 std dev = 8.538

100

96

80

# of Requests

60

40

20 10 1 0 -1.55 0.55 2.65 4.75 6.85 1 8.95 1 11.05 1 13.15

14 8 7 4 1 21.55 23.65

14 2 25.75 27.85 29.95

15.25

17.35

19.45

# of hours to deliver request

MS Excel and QC Tools software used to construct graph Fits data into a frequency distribution Can show upper and lower specification limits and denote data that

falls outside those limits (the area on which the story should focus) Used for data breakdowns by hours, minutes, dollars, etc.

Step 2: Measure Pareto Tool

Customer Service Requests Between Week 31 and Week 38 that Were Delivered Late
250 97.2% n = 251 86.1% 94.4% 90.8% 90 99.2% 100

200

76.1%

80

162

64.5%

70

# of Requests

150

60

50

100

40

30

50 29 25 12 0 DOCS LLR RS NFL O&E START QUESTION RS, DOCS Request Type

20

10 9 7 5 2 0

MS Excel and QC Tools software used to construct graphs Tool used to rank data by groups from the group that contains the most

data points to the group that contains the fewest data points. Look for a large bar or young mountain

% of Total

Team Operations and Group Dynamics

The following are a few dynamics that all teams need to be successful

P-A-L (Purpose Agenda Limit) Parking Lot

Recognition
4 Stages of Team Growth

Consensus and Brainstorming

Rules of Conduct

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

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

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

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

P-A-L (Cont.)
How Are They Created? Send a draft of the agenda. The person calling the meeting should send out information on the agenda so that the purpose, time frames and topics are clear before people come to the meeting.
Start the meeting on time. Revise and agree on an agenda. Add agenda items

suggested by others attending the meeting, as appropriate. Finalize and agree on the agenda.
Agree on ground rules.

P-A-L (Cont.)
How Are They Created? (Cont.) Encourage active participation from all members.
Choose a process facilitator. To ensure an effective

meeting, someone needs to take responsibility for managing the process portion of the meeting.
Focus the discussion. Clarify and summarize as

necessary to facilitate mutual understanding of perspectives and ideas.

Decide how to decide. Determine how decisions will be

made in the meeting - by consensus, by multi-voting, by majority voting, or by the team leader.

P-A-L (Cont.)
How Are They Created? (Cont.)
Address all items raised. Insure that all items raised are

addressed by the end of the meeting and that the person who raised the item knows what the next step will be, specifically.
Check with the person who raised the issue to ensure they

know what needs to happen next to get the issue addressed and that the proposed plan meets their needs.

Parking Lot
Parking Lot is a strategy for recording and postponing items raised during a meeting. Create a side list of items to be addressed later. Before the meeting adjourns, review ALL "parked" items and decide:
whether this group will address the item or refer it

elsewhere, and if the item will be addressed by the group, decide when and how it will be addressed - (e.g., agenda next meeting, assign).
communicate decisions to the person who raised the

item.

Parking Lot (Cont.)

Summarize results, agreements, and next steps.

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

Recognition
The purpose of recognition is to formally acknowledge the accomplishments of teams or team related activities.
Two major forces help drive Quality Improvement. These are:

Personal satisfaction from participation in the process and the knowledge that you can make constructive changes in your work environment, which help meet the needs of the customer. External recognition, which honors those who contribute to quality improvement.

Recognition (Cont.)

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

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

Team Growth (Cont.)

FORM STORM NORM PERFORM

Stage I: Form: This is where the group comes together either

for the first time or after being apart for long periods.
Stage II: Storm: This phase is characterized by intra-team

conflict as members become more familiar and more comfortable with the team environment. They take more risks, and often begin to become competitive with each other.

Team Growth (Cont.)

FORM STORM NORM PERFORM

Stage III: Norm: This phase is typified by the development

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

Team Growth (Cont.)

What Does This Mean To You? Because the Form, Storm and Norm stages of group development result in less than optimum output, teams often try and push through these phases before their chemistry is ready to move on in order to improve team productivity.
This might seem like a good idea, but it is really dysfunctional. It is natural for people to go through predictable phases of

growth depending on maturity, experience, and other factors. It is natural for teams to do so too. They must go through these predictable phases as they mature and gain experience with each other and the DMAIC Story.

Team Growth (Cont.)

What Does This Mean To You? (Cont.) The duration of each phase depends on individual and team maturity, task complexity, leadership, and the sponsor's support.
While it is natural that teams go through these stages some teams can

get stuck in different stages. Given that the stages are unavoidable, an idea to consider to help reduce the time needed for a "team in transition" to go through the stages and be fully productive, is to share expectations about the group and its preferences and direction.
Specifically, the team can establish (as part of their rules of team

conduct) for example, there will be no "surprises". This can help establish an atmosphere of trust earlier in the evolutionary process allowing for some interpersonal issues to be put aside so people can focus on team objectives.

Team Growth (Cont.)

FORM STORM NORM OR PERFORM

INDIVIDUAL ISSUES

What am I doing? Who are these people? Who is in charge?

How effective am I? How much influence do I have?

I know how I belong I know what I contribute

What is the charter? Is this the right group? Is this the right structure? GROUP ISSUES

How do we work together? What is each member responsible for? What should we be working on?

What changes might increase our effectiveness? Give and take Celebration when it is earned

WHAT YOU WILL SEE

Testing boundaries Establishing rules Caution Politeness Superficiality Dependency/ Counter Dependency

Focus on methods Conflict/tension Cop out (quick agreement and silence) Polarization Resistance Win-Lose

Increased comfort Role shifting Little need to discuss methods Identification with the group Shared power and information Fun

LEADERSHIP STRATEGIES

Break the ice! Get involved and participation

Elicit examination of differences Model and support influential, not aggressive communication

Provide positive and critical feedback Create celebration

Consensus and Brainstorming

Consensus is a group decision-making process that takes

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

produce a large number of creative ideas in a relatively short period of time.

Consensus (Cont.)
How To Reach Consensus:
The leader clearly lists the alternatives the group has to choose from

and opens the topic for discussion.

Each member of the group shares her/his ideas opinions and known

facts about what each feels the group's decision should be.
When the leader feels that the team is beginning to come to a

common agreement, he/she will clarify the position and ask the team if there is a consensus. If everyone agrees that it is the best decision, or feels that it is a decision that they can support, they state their agreement and the leader confirms the decision. If a member has new information or clarification of previous information that may be helpful to the team, time is spent discussing the concern and the process continues until consensus is achieved.

Consensus (Cont.)
THE GOALS OF CONSENSUS Eliminate a we-they feeling. Focus on the problem, not on personalities, position, or points of view. Reach a win-win decision. Develop team ownership to the decision.

Key Guidelines For Decision Making By Consensus:

Avoid arguing based on opinion. Strive to focus on facts and objectivity.

Don't change your mind to avoid conflict. Change it based on facts and objectivity. Look at differences among the group as positive ways to make change. Coach each other to be honest, open and data based as much as possible.
The following is an exercise to practice the decision-making technique of

consensus in a group setting. Pay special attention to member involvement, as this will drive your success.

Brainstorming
Brainstorming is an effective technique because of two main principles:
1.

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

1.

Brainstorming (Cont.)
How To Brainstorm:

The leader selects the method of brainstorming that will be used and informs the team. It will usually be one of two popular types:

Structured or Round Robin Unstructured Open Forum or Green Lighting

The leader clearly states the topic and purpose of the brainstorming session. Everyone agrees on the topic or issue. The topic is then written and placed in a prominent, visible position. A recorder is selected to record all ideas on a flipchart or viewgraph transparency for all to see. Always having the words visible to everyone at the same time avoids misunderstandings and helps to inspire other new ideas.

Brainstorming (Cont.)
How To Brainstorm (Cont.):

The leader reviews the following "Rules for Brainstorming" with the group:

No discussion, comments or evaluation of any idea during the generation phase. All ideas will be recorded. Quantity not quality is important during the generation phase. State ideas briefly and clearly. Build on recorded ideas.

Generation Phase- Begin the brainstorming session by posting ideas on the flip chart. Make sure all ideas remain visible to the team. Continue until the agreed upon time is used or the agreed upon number of ideas are generated.

Brainstorming (Cont.)
How To Brainstorm (Cont.):

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

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

Rules Of Conduct Constructively criticize Respect others ideas, not people Keep an open mind Question and participate Listen without interrupting Attend all meetings Share the load Follow the P.A.L.

Rules of Conduct (Cont.)

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

Constructively criticize Respect others ideas, not people Keep an open mind Question and participate Listen without interrupting Attend all meetings Share the load Follow the P.A.L.

How to Construct Line Graph Outcome Indicators

1. Draw and label each axis. Label the horizontal axis with the frequency of measurement (i.e., hour, day, week, month, etc., or by occurrence). Label the vertical axis with the indicator to be displayed. Construct appropriate measurement scales on each axis. Title the line graph with full Indicator Description including Location and Time Period.
Q3 % of Product Orders Delivered On-Time
2006
GOOD %=
# of Product Order Delivered On-Time # of Total Orders Delivered

2.

X 100

Target = 90%
100% 75% 50% 26.4% 25%

60.7%

61.1% 57.1%

Average = 49.8%

9/8/06

9/15/06

9/22/06

9/29/06 Source: XYZ Data Base Bruce Berger 2/09/07

Week Ending

Construct Line Graph Outcome Indicators (Cont.)

3. 4. 5. Show indicator formula if the indicator results from a calculation. Draw a good arrow and target. The target is displayed as a dashed line. Fill in the source block and include source of the data, who collected the data and the time period that data was collected from the source.

Data Collection Spreadsheet

Process Status Summary
Line #

DEMOGRAPHICS WHAT WHERE WHEN WHO 1 2

MILESTONES DURATION

OUTCOME

MS Excel is used to construct unique spreadsheets to record data for

analysis Spreadsheets segment information into four key sections:

Milestone Dates (key completion dates/times of steps in the process)

Demographics (contain who, what, where or when--information about the process) Durations (Performance Results calculated from the milestone dates automatically) Outcomes (Performance results of the process)

Data collection can be either manual or downloaded from existing

systems Can be used for ongoing monitoring of process performance after the project is completed

The ParetoBackground
How the Pareto Diagram was Born

1897 . . .

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

The ParetoBackground
What is a Pareto Diagram?

The Pareto is a graphical tool used to rank datasets

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

The ParetoConstruction
1. Draw a box. 2. Display the number of items in the upper left corner as shown below (n=101). 3. Title the PARETO by describing the data that is being stratified.

(Hint: answer the Question, What is n?(i.e What are the 101?) 4. Label three (3) sides of the box as follows:

1. Left side: Number of __________ Construct a measurement scale on the left side starting

with zero at the bottom and the n (e.g., 101) value at the top. Add additional appropriate scale values on the left side. 2. Bottom side: Label with the name of the What, Where, When or Who data group to be displayed (e.g., County). Draw each bar at the appropriate height descending from the left starting with the biggest bar. Label each bar and display bar height values above each bar. 3. Right side: Label this side Cumulative Percentage and display measurement grids at 0%, 25%, 50%, 75% and 100%. 4. Construct a Cumulative Percentage line: Line starts in lower left corner at zero and connects labeled data points plotted at or directly above the upper right corner of each bar and at a height equal to the cumulative percentage, calculated as follows: % = (bar heights of all bars to left data point) (the total n) * 100 (e.g., (76+20) (101) * 100 = 96%).
5. Add a source box.

The Pareto Example

Customer Service Requests Between Week 31 and Week 38 that Were Delivered Late
250 97.2% n = 251 86.1% 94.4% 90.8% 90 99.2% 100

200

76.1%

80

162
# of Requests

64.5%

70

150

60
% of Total

50

100

40

30

50 29 25 12 0 DOCS LLR RS NFL O&E START QUESTION RS, DOCS Request Type

20

10 9 7 5 2 0