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“LEAN SIX SIGMA: GREEN BELT CERTIFICATION COURSE”
ASIAN INSTITUTE OF QUALITY MANAGEMENT
(A Division of Vijigeeshu QMS Pvt. Ltd.) Office nos. 95 - 96 – 97, K. K. Market, G – Wing 5th Floor, Above FM Red Radio Station, Off Pune-Satara Road, Bibewadi, Pune – 411043 (India) *Phone: 00 – 91 – 20 - 40084939 *Cell: 00 – 91 - 9860203461 *E-mail: firstname.lastname@example.org, email@example.com
Aiqm/SSGB/CM/Rev10/01.11 Asian Institute of Quality Management
SECTION DESCRIPTION DAY – 1
1. • • QUALITY DEFINED – VOC, CTQ, KANO MODEL EXERCISES 11
EVOLUTION OF THE QUALITY FUNCTION . A JOURNEY FROM QUALITY MEASUREMENT TO SIX SIGMA APPRAISAL AND PREVENTION IN PROCESSES CORRECTION, CORRECTIVE ACTION, PREVENTIVE ACTION GOALS OF SIX SIGMA SIX SIGMA TEAM FORMATION
CROSS-FUNCTIONAL COOPERATION / BOUNDARYLESS COLLABORATION IN SIX SIGMA ORGANIZATION
THE PROCESS APPROACH –CTPS, DASHBOARD
DPU & DPMO – CALCULATING SIGMA LEVEL EXERCISES
DAY – 2
--• PRE-COURSE SECTION: BASIC STATISTICS - DISCUSSION 2 (5)
Asian Institute of Quality Management
COST OF QUALITY – IMPACT ON SIGMA LEVEL OF A PROCESS CASE STUDY
MOTOROLA’S JOURNEY FROM 3.4 TO 6.0 SIGMA
SIX SIGMA – BASIC PRINCIPLES CULTURAL CHANGES REQUIRED WHILE IMPLEMENTING SIX SIGMA
QUIZ SSGB – 01
SEVEN TOOLS OF QUALITY EXERCISES (USING CALCULATOR & EXCEL)
DAY – 3
10. • USE OF SPC IN SIX SIGMA – CALCULATING PROCESS CAPABILITY Cp, Cpk BREAKTHROUGH IMPROVEMENT AND CONTINUAL IMPROVEMENT EXERCISES 79
QUIZ SSGB - 02
DMAIC CASE STUDY – DEFECT REDUCTION 3
Asian Institute of Quality Management
DAY – 4 12. • VALUE STREAM PROCESS MAPPING 123 14. 19. 17. COUNT THE G’s (APPENDIX – 2) HOW TEAMS ARE FORMED FOR IMPLEMENTING SIX SIGMA PROJECTS (APPENDIX – 3) 140 141 18. FORD’S EIGHT DISCIPLINE PROBLEM SOLVING METHODOLOGY (APPENDIX – 9) 4 180 Asian Institute of Quality Management www. • LEAN MANAGEMENT (THE SEVEN WASTES) 118 13. TERMINOLOGIES IN SIX SIGMA (APPENDIX – 8) 174 23. APPENDICES DPMO TO SIGMA CONVERSION CHART (APPENDIX – 1) PAGE 134 16.HOME WORK (APPENDIX – 4) 147 PROCESS MAPPING CASE STUDIES (APPENDIX – 5) 148 20. FMEA TEMPLATE (APPENDIX – 7) 169 22. DMAIC CASE STUDY / EXAMPLES (APPENDIX – 6) 151 21. COQ .com .aiqmindia. • FAILURE MODE & EFFECT ANALYSIS (FMEA) 127 SECTION 15.
8 6. We will consider the general concept of variation by examining the preparation time (in minutes) of 10 pizzas being prepared by the two local shops.8 6.PRE-COURSE SECTION: BASIC STATISTICS (Participant is required to study this section on his own and practice the exercises at the end of the Section) 1.2 6.9 7. You decided to go shoe shopping.2 6.7 6. You received a haircut that was shorter or longer than usual. You received a haircut that was exactly as you wanted. and definitely not what you asked for. are you happy about being in situation – 2. • Consider the situation-2 below: • • • You went grocery shopping and reached the fastest cash counter in the store. but what about the times when you are in situation – 1? Often we wonder why this variation? Let's examine a few ways to help us evaluate variation in processes: Lets say that on your way home you stop at your local pizza shop to order a pizza that you (and your family) are waiting for.5 7. Sure.3 10.2 7.1 8.0 Asian Institute of Quality Management 5 www.3 7.com .7 5. The times are listed below.2 9. You decided to go shoe shopping.0 7. Understanding Variation: Consider the situation-1 below: • • You went grocery shopping only to select the slowest cash counter in the store. and met the best salesperson in the shop .6 5. ABC Pizza XYZ Pizza 6.5 4.aiqmindia.2 7.4 6. but got stuck with the most ignorant salesperson available.8 6.
95.If we use common statistical tools.3 Mode: The value or item occurring most frequently in a series of observations or statistical data. the mode in both cases will be: Mode for ABC Pizza = 6. The median is the middle point of a data set.2 Median: Relating to or constituting the middle value in a distribution. 1. Median is the middle value. we get Median for ABC Pizza = 6. and 50% are above this point. median will be average of the 5th and 6th reading. then median is the (n + 1)/2 th reading ).1 Mean: The mean is the average data point value within a data set. The most often occurring value in the data set.89 Mean for XYZ Pizza = 7. In this example.8 Mode for XYZ Pizza = 7. 1. when all possible values are listed in an ascending order. Calculating the mean (x-bar) in both cases. median. such as mean. Calculating the median in both cases. and mode we get the following results. we get Mean for ABC Pizza = 6. then median is the average of the n/2 th and (n/2 +1) th reading. If number of data points (n) is odd. 50% of the values are below this point. So. To calculate the mean.com .85 Median for XYZ Pizza = 6.aiqmindia.2 Asian Institute of Quality Management 6 www. 1. add all of the individual data points then divide that figure by the total number of data points.05. (If number of data points (n) is even.
95 7. However.aiqmindia. on an average. Range and standard – deviation are typical measures of variation in a process. we need more than an idea we need to measure and quantify the process . size and topping quality are equal. Median and Mode.variation.85 6. One measure of variation in a process is the difference in values of the Mean. temperature. But in business.05 6.89 6. By inspecting and comparing the differences in variation between the preparation times of the two pizza companies. So.8 XYZ Pizza 7. Range in these 2 cases will be: Range for ABC Pizza = 0. In other words. variation is what customers do not like. Therefore. It is simply the difference between the highest value and the lowest value among the data points.8 Asian Institute of Quality Management 7 www. we can get an idea of the variation. (If all the other characteristics of the pizza like taste. Another measure of variation are the Range and Standard Deviation. in six sigma the most important goal is to reduce variation.2 You can see from these results that the two pizza shops have nearly equal “means”.4 Range: The easiest way to measure variation in a process is the range.8 Range for XYZ Pizza = 5. a customer is likely to prefer ABC Pizza where he will not become annoyed by being the one person whose pizza preparation time is much slower than the others).com . we can see a very clear difference: ABC Pizza has preparation times with much less variation than the times for XYZ Pizza.ABC Pizza Mean Median Mode 6. customers wait for the same amount of time for pizzas at the two shops. 1.
9 7.ABC Pizza XYZ Pizza 6. The much larger range in case of XYZ Pizza shows that their process has a much larger variation than the ABC Pizza.26 minutes) is much lower than the standard deviation for XYZ Pizza (1.8 minutes.8 Thus the standard deviation for ABC Pizza (0. The range for XYZ Pizza preparation time is 10. which is 0.0 For the ABC Pizza data. we would divide by the Asian Institute of Quality Management 8 www.1 8.7 6. In our definition of standard deviation.4.3 minutes and 6.5 Standard Deviation as a measure of Process Variation: The standard deviation (s) of a set of sample data is a measure of variation of the data as compared to the mean. If we want to calculate the standard deviation ( population size N.3 10. we have referred to the standard deviation of sample data as s. and is defined by the following formula: Using this formula we can now compare the variation of the two pizza companies and note that Standard Deviation in these 2 cases will be: Standard Deviation for ABC Pizza = 0.4 6. the variation in ABC Pizza process is much less than the variation in the XYZ Pizza process.2 7. ) of a population.8 6.3 7.7 5.2 9.5 7.aiqmindia. In other words.0 7.6 5.com .2 6. 1. the range is the difference between 7.0 .8 minutes).8 6.5 minutes.2 = 5.26 Standard Deviation for XYZ Pizza = 1. instead of n-1.8 minutes.5 4.2 6.8 6.2 7.
4.6. 160. 2. Median. Time taken by a call center executive to resolve problems of 15 customers: (in minutes): 2. 160. Heights of 20 persons in a room (in cms): 158.7.160. 2. 155. 168. 160.6.7. 3. 173 2.0. 3.1. 164.Exercises: Calculate the Mean. 162. 3. 157.6. 2.1. 162. 168.1. 164. 3. 3. 3. 159.1 Asian Institute of Quality Management 9 www. 3. Mode.aiqmindia. 2. 162.3.1. 158. 165. Range and Standard Deviation in respect of the following data: (Hint: First arrange the data in ascending order) 1.com . 3. 165.6. 2. 160.3.1.
ROBERT NEUMAN • For technical queries contact: director@aiqminda. Examination is scheduled on last day of the course.A) Some Important Points for Participants: Please keep your cell on SILENT Mode. B) Examination Pattern: (Pass Marks are 50 out of 100). GEORGE § LEAN SIX SIGMA FOR SERVICE – MICHAEL L.aiqmindia. You are advised to revise the notes every evening. It is an Open Book examination. . Please bring a calculator with you on all days. Descriptive Type Questions similar to Quiz SSGB-01 Multiple Choice 70 Questions like Quiz SSGB-02 : 30 Marks : 70 Marks C) Books for Further Study: § SIX SIGMA FOR MANAGERS – GREG BRUE § LEAN SIX SIGMA – MICHAEL L.com . GEORGE § THE SIX SIGMA WAY . An ordinary calculator with “square-root” function will suffice. Doing the homework religiously will be helpful for the examination.com Asian Institute of Quality Management 10 www. PANDE .com OR directoraiqm@gmail. We recommend that you make your notes in the course-material Itself.PETER S.
com .VOC. CTQ. KANO MODEL Mind is like a parachute: works best when it is open .Charlie Chan Asian Institute of Quality Management 11 www. QUALITY DEFINED .aiqmindia.1.
taste.com . The Critical to Quality (CTQ) characteristics of a product / service are those factors which have major impact on the satisfaction of the customer. Quality Characteristics are derived from an understanding of the Voice of Customer (VOC). if they work well in the equipment for which they are meant. Who is the Customer? (CUSTOMER SEGMENT) VOC Quality Characteristics CTQ’s Exercise: List the Quality Characteristics required by the following customers and identify their CTQs: A) User of your organization’s products / services (External Customer): Asian Institute of Quality Management 12 www. reliability. 1. These are generally called as quality characteristics. performance . odor and maintainability etc.Broadly quality has been defined as: 1.1 Fitness for Use (Juran) – Two Implications: a) The components are said to possess good quality. life. b) Give so much to customer as he values – Not More.aiqmindia.2 Grade Quality is the distinguishing features or grade of the product in appearance.
com . Asian Institute of Quality Management 13 www. today is: Quality is Customer Satisfaction. Increased quality of execution will result in increased customer satisfaction. the customer satisfaction will reduce. satisfaction will not decrease (below neutral) if the product lacks the feature.B) Services provided by HR Department: (Segment: Internal Customer: Production / Operations) 1. • • Linear Attributes (Stated Needs): These characteristics have a linear co-relation to the customer satisfaction.3 A short definition that is widely accepted. • Expectations (Exciters / Delighters): Customers may get great satisfaction from an added feature .and are willing to pay a price premium. the customer will remain neutral towards the product / service even if quality of these aspects is increased to a higher level). In terms of KANO Model (See Figure-1 on next page): Basic Attributes (Unstated / Understood Needs) are: Attributes which must be present in order for the product / service to be useful. (However. However. If quality on these aspects is reduced.aiqmindia. Expectations of the customer. aimed at meeting the: • • • Stated Needs Unstated Needs / Understood Needs.
9997%).e.4 defects per million opportunities for error i.Figure 1: the Kano model Based on this definition of Quality.00034%. The Quality Goal for any process was fixed by Motorola as: Less than 3.aiqmindia. Asian Institute of Quality Management 14 www. 0.com . Motorola found a way to “measure quality” which they expressed in terms of “defects” and a “SIGMA” level.g. Customer CTQ not achieved can be considered as a DEFECT). (E. an accuracy of 99. i.99966% (or 99.e.
000 66. if we want to improve any process.:SIGMA LEVELS & DPMO DEFINED BY MOTOROLA: Process Capability (Sigma Level) Defects Per Million Opportunities for Error Defect Count in % 1. What are the CTQs? 4.000 308.210 230 3. we follow the under-mentioned steps: 1.800 6. Who is the customer for the process (internal customer or external customer)? 2. Find the Quality Characteristics required by him (Based on VOC)? 3.0 690. What are the actions required to achieve the CTQs? Asian Institute of Quality Management 15 www.0 3.0 4.62 0.4 69 30.68 0.0 2.0 6.00034 SUMMARY In six sigma management system.0 5.com .aiqmindia.023 0.8 6.
2.com . Dave Crosby Asian Institute of Quality Management 16 www. A JOURNEY FROM QUALITY MEASUREMENT TO SIX SIGMA Why spend time finding.aiqmindia. fixing and fighting when you can prevent the problem in first place... EVOLUTION OF THE QUALITY FUNCTION .
With the spread of the use of Statistical Quality Control (SQC) tools. All Processes Area of action End of line Appraisal Inspection End of line Appraisal Inspection Control Before the beginning Prevention Appraisal Plan. Shewart. Do. This led to the inspection being handled by a supervisor independent of production reporting directly to the on the Works Manager.com . Products Quality Assurance Materials. W. developed mostly by Dr.2.1 Quality function started as inspection of a product at the end of a production line to ensure that the product was manufactured as per the design. Production (Operational) Processes On-line TQM / Six Sigma Materials. It was also realized that controlling a process while it is being performed. The wisdom of entrusting the supervision of inspection to the supervisor responsible for production was soon questioned. By approving what met the requirements and rejecting what failed to do so. This phase can be called ‘Quality Control’. is more effective than testing at end of the line. Act (Deming’s PDCA) General Manager / Vice President Managing Director / President System Appraisal Prevention Inspection Analysis Function Status Reporting to Operator Production Supervisor Supervisor Works Manager Manager General Manager Asian Institute of Quality Management 17 www. This phase is known as “Quality Assurance ‘. inspection became more scientific. Products. he controlled the quality of products. Thus the action moved end of the line to on-line. Thus the function was inspection and control. The supervisor of inspection had the authority to take action based on the results of inspection. The function was mainly testing or inspection and the system of achieving quality was appraisal. Table : Process of Evolution of the Quality Function Phase Scope Quality Measurement Products Quality Control Materials. The inspector only measured quality and reported the results. Audit (Check). Products. It was initially handled by an inspector who was probably an experienced operator who continued to report to the production supervisor. The system was still appraisal only.aiqmindia.
Lessons Learnt: The appraisal (or inspection) process is prone to human error Sampling inspection is as effective as 100% inspection 200 % inspection at the end of a process may not necessarily lead to higher quality. count all the “Gs” within 3 minutes.aiqmindia.Exercise-A: Refer Appendix-2. Asian Institute of Quality Management 18 www.com . Assuming that the letter “G” is a defect.
• • In some cars you get an alarm if you do not tie the seat belt Spell Check indicates entry of a wrong spelling. b) ICD: Another form of Poka Yoke is that any attempt to perform a process / operation incorrectly. OTHER EXAMPLES: * Railway Signal * Compulsory fields in on-line forms * CCTV in Shopping Mall Asian Institute of Quality Management 19 www.aiqmindia. • • Pen-drive will enter the USB port in one direction only Microwave will shut down the moment we open its door.g.com . We refer to this as Reduce Chances of Occurrence (RCO) of mistake. E.g. We refer to this as Increase Chances of Detection (ICD) of mistake.2.2 TYPICAL ROUTES FOR ACHIEVING PREVENTION (MISTAKE PROOFING / POKA YOKE): a) RCO: Poka Yoke is a technique of preventing mistakes by designing the process / equipment such that an operation just cannot be performed incorrectly. is met with a warning signal or alarm. E.
3 CORRECTION.2. CORRECTIVE ACTION. PREVENTIVE ACTION: Correction Rectifying the mistake that has occurred. Preventive Action Extend the learning to other departments of the organization Build Poka Yoke in the process to prevent occurrence of the root cause in the first place. Six Sigma is all about building prevention in processes.com . i.aiqmindia.e. (Japanese call this as “Kill the root cause”). then there would be no need to “inspect” for defects or mistakes. Asian Institute of Quality Management 20 www. Globalize the solution Think pro-actively and build prevention in processes before things go wrong. Corrective Action First Find the Root Cause (Ask Why 5 times) OR (Fish Bone) Build Poka Yoke in the process to prevent reoccurrence of the root cause. If the process does not allow mistakes / defects to be generated. the damage control.
O. It involves systematic data collection & statistical analysis to achieve one of the following THREE Goals: Reduce defects in any process to reach a level of less than 3. Typical Savings Target for a Six Sigma (Black Belt) project: SR 0.com .aiqmindia.2.4 Goals of Six Sigma Management System: Six Sigma is a management system that helps any organization to improve their profitability. The Ultimate Goal in all these efforts is: To Increase R.5 Million per annum Homework: Read Article in Appendix-3: (How Teams are formed for Implementing Six Sigma Projects) Asian Institute of Quality Management 21 www. Delight internal and external customers by fulfilling their present & future needs.I.4 per million opportunities for error. (Profits) for the organization. Eliminate Wasteful Practices.
DEC 1993 – ABB 1995 . Philips.5 WORLDWIDE USE OF SIX SIGMA: 1986 – Motorola 1989 – IBM 1991 .aiqmindia. US Postal Service. Sony. adoption of Six Sigma Management System has increased phenomenally. Samsung.5 Billion in 1999 Asian Institute of Quality Management 22 www. Today 53 % of Fortune-500 companies are using Six Sigma -and that figure rises to 82 % when you look at just the Fortune-100. NEC.American Express. NCR. LG Electronics.Kodak.5 Billion in 1999 •$85M early 2000 •$2. Nokia.2. Ericsson. Financial impact of Six Sigma •$1.GE. Dupont. J&J.com . Toshiba. Whirlpool 1999 . • In recent years. Allied Signal 1997 .Dow Chemical.5 Billion in 1999 •Average of $600M/year since 1995 •$3 Billion in savings since 1995 •$1.
com Asian Institute of Quality Management . SKF Bearings Standard Chartered Bank Taj Hotels Tata Consultancy Services Tata Honeywell Tata Share Registry Tata Motors Tracmail TVS Suzuki VIP Industries Wipro BPO Wipro Infotech Wipro GE Whirlpool 23 www.aiqmindia. G. C. N. Patni Computers Pidilite Industries Reliance-Patalganga Samtel Colour Ltd.2.6 SAMPLE LIST OF COMPANIES IMPLEMENTING SIX SIGMA IN INDIA: • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Asian Paints Angel Broking Birlasoft Citicorp Coca Cola Convergys India Cummins India Datamatics Technologies Deutsche Bank e-Funds India International EXL Services Eaton Technologies GE Capital GATI Limited ICICI Bank Indian Railways Indofil Chemicals L&T Infotech L & T Switchgear L. Electronics Tech Mahindra Marico Industries O. G.
root cause analysis and measurement of quality in terms of “sigma levels” Focus is on pain areas affecting day to day operations Methodology involves data collection.com .7 Comparison Between Six Sigma & TQM: SIX SIGMA TOTAL QUALITY MANAGEMENT (TQM) Developed by Motorola – USA (Many concepts borrowed from TQM) Developed in Japan with help of Dr.2. root cause analysis Profit / Savings are calculated at end of each improvement. Juran Implemented through cross-functional teams Implemented through cross-functional teams More of the team-members are from middle-management (Six Sigma teams) More of the team-members from supervisor / team-leader and operator levels (Quality Circles) Focus is on pain areas affecting management Methodology involves data collection.aiqmindia. No such linkage is established. Deming and Dr. Asian Institute of Quality Management 24 www. data analysis. data analysis.
Casey Stengel Asian Institute of Quality Management 25 www.aiqmindia. CROSS-FUNCTIONAL COOPERATION / BOUNDARYESS COLLABORATION IN SIX SIGMA ORGANIZATION Finding good players is easy.3. Getting them to play as a team is another story.com .
KPIs) are delegated to achieve the management goals related to: • • • • Profitability Sales Turnover Market-Share Share-Prices.Q: Cost – C Delivery (Schedule) – D (or S) -- Product Quality Support Quality -- Shigeru Aoki.2 But achievement of these functional goals and management goals are of no importance to the Customer. Asian Institute of Quality Management 26 www. such as: Marketing / Sales Design / Product development Purchase / Stores Human Resources Production / Operations Logistics Accounts Administration.3. Cross – functional cooperation (or Boundary-less Collaboration) is. Toyota’s Sr. M. 3. therefore. The customers are more interested in what the organization offers them in terms of: Quality .com . a major requirement for an organization implementing six sigma so that it can deliver value to customers on an on-going basis.aiqmindia.e. 1 A traditional organization is normally categorized by vertical functions. Functional targets (Key Performance Indicators i.D. These goals call for cross – functional efforts cutting horizontally across the whole organization. refers to these “Q-C-D” goals as SUPER-ORDINATE compared to the functional goals since these are the goals that give value to customer.
D. If we focus on achieving these super-ordinate goals (i. Will succeed even in situation of high competition. 3. goals) through cross – functional cooperation then profits will follow on an on-going basis.e. the Q.aiqmindia. C. Assuming that this is self – evident.3 The hierarchy of various Functional goals versus Cross. the next “super-ordinate” goals of the company should be such cross – functional goals as: • • • Quality (PQ & SQ) Cost Delivery. D.com .3. (May not create goodwill and loyalty for organization in the long-run) • Customer Centric (Seeks to provide Value for Customer) Six Sigma Management Focus is on achieving Q.4 TRADITIONAL MANAGEMENT VS SIX SIGMA MANAGEMENT: Traditional Management Focus is on achieving Functional / Departmental Goals (Conflict between departments may exist) OrganizationCentric (Seeks to provide Value for Organization) Management Goals achieved: • • Profit SalesTurnover MarketShare SharePrices This Strategy will work in situation of less or no competition.C. Asian Institute of Quality Management 27 www. Goals (Achieved through crossfunctional cooperation) • This Strategy ensures long-run goodwill and loyalty of customer.functional goals was clearly described by Shigeru Aoki as Toyota’s corporate philosophy: The ultimate aim of a company is to achieve the Management Goals.
com .3.aiqmindia.5 Delivering Value to Customer: Asian Institute of Quality Management 28 www.
Customer Centricity – The Cornerstone of 6-Sigma Customer What does my customer need from our process? How would my customer like for our process to perform? What can we do better? How is our process performance from the customer perspective? How does my customer view my process? How does my customer measure my process? Asian Institute of Quality Management 29 www.aiqmindia.com .
4.com . DASHBOARD The right process will produce the right results Toyota Philosophy Asian Institute of Quality Management 30 www. THE PROCESS APPROACH – CTPs.aiqmindia.
X3.1 The Process Model: Controllable (& Measurable) Factors Transformation Inputs (X1. .com . X2. why do we constantly test and inspect Y? Asian Institute of Quality Management 31 www. X6 are the causes. XN Independent Variables Input & Controllable Factors Causes Problem Monitor If we understand that X1. X2. . . THE PROCESS APPROACH AND PROCESS MODEL: 4.Xn) (Using Resources* & Management of Activities) Output (Y) Not . X4.4. X3 ------------.Controllable Factors (Measurable or Not Measurable) Y Dependent Variable Output Effect Symptom Monitor X1.aiqmindia.
along with identification and interactions of these processes. and their management is called as the process approach.2 Exercise: • Think of your immediate customer (internal or external) • List two of his CTQs • List two (measurable & controllable) CTPs for each of these CTQs. Effectiveness is “ability” of process to achieve the CTQ . Asian Institute of Quality Management 32 www.e. at what cost?) EFFICIENCY OF PROCESS = Results achieved Vs quantum of resources used (The lesser the resources* used for achieving say X – Level of effectiveness.e. EFFECTIVENESS OF PROCESS = Ability to achieve satisfaction of customer Input PROCESS (“Set of interrelated or interacting activities”) Output Product / Service (“Result of a process”) Efficiency is results achieved versus resources used (i. Methods.4. X3 ------------. the more the process is efficient’). X2. Machines.com .3 The Process Approach: Y = f(X1. Money.aiqmindia.Xn) The application of a system of processes in an organization. * Resources includes 5 – Ms i. Men. Materials. 4.
• Find ways to improve the CTPs using techniques like benchmarking.e.com . the CTQs. the CTPs). root cause analysis. • Identify the Measurable & Controllable inputs / factors that have major impact on achievement of the CTQs (i.aiqmindia.e.4 To improve any process we need to : • Identify the Measurable outputs i. • Asian Institute of Quality Management 33 www. Focus on improving the CTPs to achieve the CTQs.4. etc. • Ensure that the process must have an owner.
DPU & DPMO – CALCULATING SIGMA LEVEL If you don’t have time to solve problems.5.com .aiqmindia. how come you always have time to do it wrong again! Asian Institute of Quality Management 34 www.
The person who enters the order makes one defect on an average.1 Defects Per Unit (DPU) and DPMO DPU is the number of defects in a given unit of product or process.0 Million) Opportunities for error in that unit Example: A purchase order has 20 opportunities for error.000 What is the Sigma Level? Asian Institute of Quality Management 35 www. DPMO = 1 x 1.aiqmindia.000 (1. It means: DPU = 1 / 1 = 1 So.000.000 20 = 50.com . of defects detected (at given review point) No. of units processed at that review point Defects Per Million Opportunities (DPMO): DPMO = DPU x 1.5.000. DPU = No. Compute the Sigma level for this process.
It should be noted that the term “customer” refers to both internal and external customers. or does not fulfill the functional or physical requirements. unit and opportunity. c) Define Your Product/Service Units: A unit is something that can be quantified by a customer.2 UNDERSTANDING DEFECTS. From these comments. b) Define Your Product/Service Defects: A defect is defined as any part of a product or service that: • • • does not meet customer specifications or requirements. issues and specifications come the customer CTQ (Critical To Quality) – a product or service characteristic that must be met to satisfy a customer specification or requirement. It may be seen as a physical unit or. UNITS & OPPORTUNITIES: In order for any process capability to be calculated accurately. units and opportunities. Voice of Customer is the process of gathering customer comments/quotes and translating them into issues and specifications.com .aiqmindia. if a service. you need to understand the needs of your customers. It is a measurable and observable output of your business process. a) Start With The Customer: Before you can define your process defects. Asian Institute of Quality Management 36 www. it may have specific start and stop points.5. unit and opportunity. one must properly define and quantify the process defect. or causes customer dissatisfaction. Every process should have definitions for defect.
’ CTQ Name: Executive Responsiveness CTQ Measure: Time on hold (seconds) CTQ Specification: Less than 60 secs.aiqmindia. Unit: Call Opportunity: 1 per call Calculate Your Sigma Defects: 263 calls Units: 21.d) Define Your Product/Service Opportunities for Error: Opportunities are the total number of chances per unit to have a defect.’ CTQ Name: Typographic Quality CTQ Measure: Number of typographical mistakes CTQ Specification: Zero typographical mistakes Defect: Any typographical mistakes Asian Institute of Quality Management 37 www. like a unit. The total count of opportunities indicates the complexity of a product or service. Each opportunity must be independent of other opportunities and. e) CTQ Examples including Defect. Unit and Opportunity: Area: Call Center Customer Quote: ‘I consistently wait too long to speak to an Executive. from call connection to the automated response system Defect: Calls with hold time equal and greater than 60 secs.501 calls Opportunities: 1 per call Sigma: ------------------------------------------------------------------------------------------------------------------------Area: Book Publisher Customer Quote: ‘I can’t stand any typing errors in books I purchase. The final requirement of an opportunity is that it directly relates to the customer CTQ.com . must be measurable and observable.
com . of letters per word (Average) Calculate Your Sigma Defects: 35 typographical mistakes Units: 100.aiqmindia.School Process: SubProcess Admission Admin. of Opportunities for Error Defects 20 600 500 450 550 200 900 30 6 17 13 7 12 4 19 7 Total Opportunities Total DPU DPU DPMO Sigma Level Asian Institute of Quality Management 38 www. of Students 200 1500 1500 1500 1200 1000 1500 1400 No. Teaching HW Extra Curricular Sports Exam Library No.Unit: A word Opportunity: No.000 (500 words/page x 200 pages/book) Opportunities: 5 per word (average) Sigma: Calculating Sigma Level of An Entire Organization :EXAMPLE .
6. COST OF QUALITY – IMPACT ON SIGMA LEVEL OF A PROCESS It is always cheaper to do it right first time Dave Crosby Asian Institute of Quality Management 39 www.com .aiqmindia.
cost of machine / server downtime. Typical examples are: cost of attending to customer complaints and repairs (service costs). before delivery of an organization’s product or service or communication to external party. cost of rework. cost of corrective actions. COST OF QUALITY: The effective cost component of a product or service that is attributable to the quality aspects can be called as cost of quality. Asian Institute of Quality Management 40 www. cost of A wrong recruitment advertisement. The costs of quality are: Failure costs Hidden costs Appraisal costs Prevention costs 6. Typical examples are: costs of labor or machines hours lost in scrapped items.com . - b) External failure costs: These are costs on defects that an organization incurs after delivery of its product or service or communication to external customers. cost of re-testing and re-inspection.6.aiqmindia.1 Failure Costs: a) Internal failure costs: These are costs resulting from defects.
Cost of redesign due to quality reasons.com . Cost of preparation conducting audits. if any. in-process and final inspection. Typical examples are: Potential lost sales.aiqmindia. Cost of destructive test losses.3 Appraisal Costs : These are the costs of determining the degree of conformance to quality requirements. Asian Institute of Quality Management 41 www. cost of product recalls. cost of warranty. cost of returned goods. Cost of Non-Conformance = Cost of Making Mistakes (Cost of Poor Quality) = Internal Failure Cost + External Failure Cost + Hidden Cost 6.- cost of replacement. Legal claims on the organization. cost of mistake in a product advertisement. Typical examples are: Cost of inwards. 6. Extra processing costs due to defects.2 Hidden Costs: Hidden costs are generally present in all cases of internal and external failures.
Cost of Conformance = Cost of Appraisal + Cost of Prevention SUMMARY TOTAL COST OF QUALITY Cost of Non-Conformance (Cost of POOR Quality) Cost of Conformance Internal Failure Cost External Failure Cost Cost of Appraisal --- Cost of Prevention --- + Hidden Cost + Hidden Cost Asian Institute of Quality Management 42 www.aiqmindia. Cost of administrative machinery and organization for inspection.com .4 Prevention costs: These are the costs of preventing errors / minimizing failures in an organization. Cost of engineering quality at design stage. Cost of pilot production. testing and appraisal. Cost of process control and design of process control systems. Cost of training for quality. Typical examples are: Cost of acquiring quality-related data and analyzing for prevention. Cost of quality planning.Cost of maintenance and calibration of test instrumentation and facilities. 6. Cost of preventive maintenance.
Q1.000 SR 90. Etc.CLASSIFICATION Asian Institute of Quality Management 43 www. Scrap.com . What should be the plan of action for Jan to Dec’11? ------------------------------------------------------------------------------------------------------ -----------------------------------------------------------------------------------------------------Exercise : APPENDIX – 4: COQ . How would you compare Jan to Dec’10 with Jan to Dec’09? Why? Q2.000 SR 180.aiqmindia.000 Appraisal Cost SR 120.) SR 210.000 (One additional inspector for checking outgoing quality was appointed from 1st Jan 2010).000 Cost of External Failure SR 340.000 SR 440.Case Study – A: Consider the following situation: ITEM JAN TO DEC’09 JAN TO DEC’10 Cost of Internal Failure (Rework.
According to Phil Crosby COQ as % of Sales can vary from 1% to 40% : IMPACT ON COST OF QUALITY 20 CoQ as 15 a % of Sales 10 5 DPMO SIGMA 3 6 233 5 6210 4 66807 308537 5000000 2 1 3 page 15 Asian Institute of Quality Management 44 www.aiqmindia.com .
7. you get run over if you just sit there.4 TO 6. Asian Institute of Quality Management 45 www.aiqmindia.0 SIGMA Even if you are on the right track.com . MOTOROLA’S JOURNEY FROM 3.
Take Action SIP Profits Path “A” – Ignore Problem.7.4 defects per million defect opportunities. Using statistical processes. Do Nothing Time Motorola’s Key Objectives: To survive in a Global Economy To Cut Waste (operating costs) To win more customers 7. By identifying and eliminating causes of variation in business processes. 46 www. wherever required.2 Motorola’s Definition of Six Sigma? Six Sigma is a process improvement methodology that aims to: • • • • Reduce defects to a rate of 3. and Focusing on development of a very clear understanding of customer requirements (Voice of Customer).aiqmindia.1 What drove Motorola towards the Six Sigma Initiative in the 1980’s? The Strategic point of Inflexion (SIP) “Valley of Death” Path “B” – Recognize Problem.com Asian Institute of Quality Management .
9997 % Activity / Operation Error (Nos. * Table: Comparison of 99.800.000 letters Out of 5.0 66.000 cheques in a week Handling of 60.aiqmindia.0 3.0003% 2 times 5 times 10 times 30 times 80 times The objective of Six Sigma is to achieve level of 3.000. baggage by Airlines in a day 200 wrong clearances < 1 wrong clearance 60 bags lost in a day < 2 bags lost in a week Asian Institute of Quality Management 47 www.9 % Quality Vs 99.9 % Quality 300 mis – deliveries 500 crashes Error (Nos.0 308.0 230.8000% 6.4 69.4 defects (or errors) out of every million defect opportunities.000 computer restarts Clearance of 200. Defects as Percent.6210% 0.com .* Table: Sigma Level. This translates into 99.000.000 nos.9997% perfection.9997 % Quality 1 mis – deliveries < 2 crashes Delivery of 300.210.0 6. and Improvement: One Sigma Two Sigma Three Sigma Four Sigma Five Sigma Six Sigma 690. Defects per Million.0000% 30.) With 99.) With 99.0230% 0.6800% 0.00.
000 100.aiqmindia.000 100 10 1 1 2 3 4 5 6 Purchased Material Lot Reject Rate IRS – Tax Advice(Phone-In) Restaurant Bills Doctor Prescription Writing Payroll Processing Wire Transfers Airline Baggage Handling Best-in-Class Average Company Domestic Airline Flight Fatality Rate 7 (0.000. - - - - Asian Institute of Quality Management 48 www.43 PPM) Sigma Scale of Measure A Sigma rating indicates the ability of a process to perform without defects 7.Sigma Quality Level with various services PPM 1.3 Motorola’s vision in 1980’s: Saw the need to be Proactive (many other electronic companies were failing due to Japanese competition) Wanted to be world’s best communication company just as Toyota wanted to be worlds best car company Translated Quality into quantifiable language (while other companies were talking about customer satisfaction and world class Quality) Began to impose the six Sigma (3.com .000 1.4 PPM) initiative everywhere throughout the organization (technical as well as non – technical ) – This company initiative greatly impressed the Malcolm Balridge Examiners in 1980’s.000 10.
(The Journey: 30. 2.000 300 30 3. Year 1986 1988 1990 1992 1994 DPMO 30. 4. DPMO). Executive bonuses tied to quality improvement demonstrated.000 3. Key goals announced to all employees and organizations.com . per employee training mandate.0 Sigma Level (??) 7. 3.e. i. This translated to a 10 time improvement every two years.aiqmindia.000 DPMO to 3 DPMO in 8 years).What Motorola did? Goal set: 3.e. later worldwide. 40 hour per year.4 Specific actions taken by Motorola: 1. Asian Institute of Quality Management 49 www. 10 times reduction in DPMO every two years. Strong emphasis on training (employees and key suppliers) – Motorola University started in Schaumburg.4 PPM (i.
7.Design for Six Sigma .SPC . Asian Institute of Quality Management 50 www. Benchmarking on a Global Scale ( “Bandit Programme” ). Total Customer Satisfaction programmes to foster employee involvement. Training involved areas like : Six Sigma Basics Process Mapping .aiqmindia.Risk Analysis (FMEA) DMAIC . 6.Design of Experiments .Effective Supply Base Management Early Supplier Involvement Schedule Sharing Partnership for Growth.5.com .
SIX SIGMA – BASIC PRINCIPLES We are what we do repeatedly. excellence then is not an act.com .aiqmindia. Aristotle Asian Institute of Quality Management 51 www. but a habit.8.
which would then lead to correct CTPs. 8.2 Principle 2: Data – and – fact Driven Management: • It begins by clarifying which measures are key to achieving the business performance i.1 Principle 1: Genuine focus on customer: Everyone talks of exceeding customer expectations.e. Management & Improvement: Six Sigma focuses on “Process Approach” to achieve success. customer focus is top priority. which are the CTPs? Then it applies data & analysis to build understanding of the CTPs to achieve optimization of the results. We look at every activity as a process: • Find the CTQs required by the customer for the process. :Six Sigma projects combine: • Process Knowledge (Critical Thinking) + Analysis of Data (Statistical Thinking). Sincere efforts to measure customer satisfaction (perception) on an on – going basis are necessary to identify correct CTQs. • • • 8.3 Principle 3: Process Focus. In Six Sigma.aiqmindia. but very few really understand their customer needs / expectations.8.com . Asian Institute of Quality Management 52 www.
instead of blindly defending them.5 Principle 5: Boundaryless Collaboration: • Six Sigma approach eliminates competition between groups who should be working for a common cause – (providing value to customers). Six Sigma talks of creative thinking to achieve on-going improvements. Develop a Monitoring System (Control Chart) to ensure that the CTQs are performing at the required levels i. the Quality Indicators.aiqmindia.4 Principle 4: Pro – Active Management: (Means acting in advance of events) such as: • • Focusing on problem prevention (Preventive Action) Questioning “Why” we do things in a certain way. 8.com . • 8. Instead of personnel reactively bouncing from crisis to crisis (and looking busy).e. • Asian Institute of Quality Management 53 www. the Process Indicators (Dashboard).• Find the CTPs (controllable & measurable) factors that have major Impact on the CTQs • • Improve the CTPs to improve the CTQs Develop a Monitoring System (Control Chart) to ensure that the CTPs are performing at the required levels i. . It encourages work environment that supports true teamwork in companies between Employees Vendors (Suppliers) Customers.e.
e.com . c) Impatience of Management / Employees: Stopping the six sigma initiative after a few quick wins. Approaches to Risk Management: Risk Level No Low High Gain No Low High Loss No Low High • Six Sigma works on basis of Calculated Risk: • Assessment of Risk and Reduction of Risk. Expecting to reach six sigma level within a year. 8.7 FACTORS WHICH CAN LEAD TO FAILURE IN SIX SIGMA IMPLEMENTATION: a) Top management participation is missing. b) Champion is not interested in a particular six sigma project.8.6 Principle 6: Drive for Perfection. Asian Institute of Quality Management 54 www.aiqmindia. (better service / lower cost / new capability) • Mistakes can occur Six Sigma allows for failure but through technique of Risk Management (ensuring only safe – failure). Tolerance for Failure: To improve performance i.
Effective in leading a cross-functional team Enthusiastic about finding solutions when none are clearly visible. “Is this the best way?” “How can we make it better?” Employees must communicate openly about failures: Often people have a tendency to hide mistakes – Why? Due to fear of being blamed. We may use very good methodologies. but these may not succeed if we cannot change the culture. 8. Employees must question existing practices: We need to encourage employees to question the “present way of doing things” during brainstorming sessions.d) Selection of wrong persons for the black belt’s role: Persons selected for Black Belt’s Role need to be: Creative by nature – need to do more of lateral thinking. We need to create a culture wherein people do not hesitate to collect data and analyze data.aiqmindia.com . e) Resistance to change – not handled adequately. Asian Institute of Quality Management 55 www.8 CULTURAL CHANGES REQUIRED WHILE IMPLEMENTING SIX SIGMA: Willingness to collect & analyze data: Processes are better understood only if we collect data and analyze data related to the process. Six Sigma methodology is successful mainly through involvement of people and their willingness to give up old habits / methods of doing work.
A. goals. Often this requires an attitudinal change. If we have to reduce variation (improve consistency) in our processes it will happen only when everyone follow the SOPs and the audit plans. This calls for excellent teamwork and cooperation between the departments. make SOPs. Positive attitude to internal & external Customers: Often the response to a customer complaint is to believe that “the customer is complaining unnecessarily” or “whatever we are doing is right – the customer simply trying to trouble us” In a six sigma organization. train people on the SOPs but the process will not improve if people will not follow the SOPs consistently.com .aiqmindia.C. When a mistake occurs: we need to focus on what went wrong and not on who went wrong. We need to create a culture where employees “can openly talk of their mistakes”. Cross-functional cooperation: As an organization implementing six sigma.A. employees need to think in advance “what can go wrong in this process” and how can we prevent the mistakes proactively.When people hide mistakes.D. TQM and Six Sigma go hand in hand with self-discipline. In many situations. teamwork does not come naturally – it has to be taught. there will be no root cause analysis. Self Discipline: Quality management. no C. Proactive thinking across the organization: Instead of fire-fighting / reacting to problems. it is very important to believe the customer complaint and respond to the same in a positive manner. Asian Institute of Quality Management 56 www. This requires self-discipline. Result: The same mistakes / defects will repeat. We may improve processes. and no P. our main goal is to deliver value to customer in terms of achieving the Q.
Satisfying CTQs of internal customers is used for achieving Quality Assurance. Support Quality: 4. Asian Institute of Quality Management 57 www.QUIZ SSGB – 01 1. Support Quality: 3. 2. If we increase cost of conformance. Product Quality: b. Product Quality: b. Explain.com . what will be the effect on cost of non-conformance? Explain with help of a graph. what would be the requirements in respect of: a. For upper-income customers of a builder of residential flats. For “salary-class” customers of a bank what would be the requirements in respect of: a.aiqmindia.
5. List three CTQ characteristics for McDonalds Restaurant separately for following customer segments: Housewives Working Executives Teenagers (College Students) 7.com . Explain “Poka Yoke” with help of an example 8.aiqmindia. Explain Corrective Action and Preventive Action with an example Asian Institute of Quality Management 58 www. What are the 3 major goals in six sigma methodology? 6.
com .aiqmindia. Edwards Deming Asian Institute of Quality Management 59 www. W. you don’t know what you’re doing.9. The Seven Tools of Quality If you can’t describe what you are doing as a process.
According to Ishikawa. 2. The Seven Tools of Quality are: 1. Histogram. Check Sheet. 5. Pareto Chart. 1. Cause and Effect (Ishikawa / Fishbone diagram). 95% of quality-related problems can be resolved with these basic tools. A good flowchart should show the process . The Pareto Chart and Cause & Effect Diagram are two tools that are used most widely by process improvement teams. Asian Institute of Quality Management 60 www. • By checking the value-addition provided by each step in the process. 3. FLOWCHART: Flowcharts describe a process in as much detail as possible by graphically displaying the steps in proper sequence.9. Control Chart.com . Most of these tools help in visual presentation of the data. 7.aiqmindia. It is not covered under these 7 tools of quality).steps in the appropriate sequence. which is useful for presentation and discussion in Cross-Functional Teams (CFT’s). 4. It is different from Check Sheet. Flowchart. 6. (Note: Checklist is also a tool used in quality management. The process team can analyze these steps: • By identifying the critical process points that need to be controlled so that suitable appraisals and preventions can be added (to prevent likely failure modes). Scatter Diagram.
com .aiqmindia.TYPICAL FLOW CHART SYMBOLS: START / FINISH ACTIVITY / OPERATION DECISION STAGE A LINK TO NEXT ACTIVITY A DOCUMENT (OR SCHEMATIC DIAGRAM) Asian Institute of Quality Management 61 www.
com .INTERNAL AUDIT PROCESS: START AUDIT PLAN AUDIT SCHEDULE AUDITING (AUDITOR + AUDITEE) CONFORMITY No NC REPORT MR CORRECTIVE ACTION BY AUDITEE CORRECTIVE ACTION I MPLEMENTATION List of Auditors NCs from earlier Audit List of Departments Yes WRITE A REPORT GIVE TO MR STOP C. IS OK Yes STOP Asian Institute of Quality Management 62 www.aiqmindia. A. COMPLETE FOLLOW UP AUDIT No C.A.
the part with the largest number of defects carries the highest priority for correction. They show how many times each particular value occurs. The check sheet example in Figure above shows a list of molded part defects on a production line covering a week's time. CHECK SHEET: Check sheet helps in organizing the data by category. check sheets help operators to spot the problems.aiqmindia. Assuming the production flow is the same on each day. By showing the frequency of a particular defect and how often it occurs in a specific location. CHECK SHEET: 2. One can easily see where to set priorities based on results shown on this check sheet. Check sheets minimize clerical work since the operator merely adds a mark to the tally on the prepared sheet rather than writing out digits.Fig. Asian Institute of Quality Management 63 www. It is a data-collecting device. and their information is increasingly helpful as more data are collected.com .
Animal on track – 3. Signal Fault – 4.com .Exercise: Causes for Railway Accidents (Out of 50 cases): Driver Sleeping – 17. Track Fault – 8. Others – 3. Engine Fault – 12. Sabotage – 2.aiqmindia. Draw a Pareto Chart. Unmanned crossing – 1. Asian Institute of Quality Management 64 www.
Lets Compare the Process in School – A and School – B as per data given below: % marks obtained by the students No.com . (A) HISTOGRAM: (Is used to display the frequency of distribution of continuous / variable data).aiqmindia. of students in each school = 50 Pass percentage is 50%. % Marks Obtained School-A 96 91 91 91 82 82 82 82 82 82 77 77 77 77 77 77 77 68 68 68 68 68 68 68 68 68 62 Asian Institute of Quality Management School-B 90 81 81 81 73 73 73 73 73 73 66 66 66 66 66 66 66 61 61 61 61 61 61 61 61 61 58 65 www.4.
com .62 62 62 62 62 62 55 55 55 55 55 55 47 47 47 47 47 38 38 38 38 23 23 58 58 58 58 58 58 55 55 55 55 55 55 53 53 53 53 53 51 51 51 51 50 50 Asian Institute of Quality Management 66 www.aiqmindia.
com .(B) 20 No. Of 15 Students 10 5 ___________________________________________________ 14 28 42 56 70 84 98 Asian Institute of Quality Management 67 www.aiqmindia.
ii) Range is a measure of the variation in a process. iii) Another measure for variation is the Standard Deviation represented by Greek letter Sigma (σ) or “s”: Asian Institute of Quality Management 68 www.e.aiqmindia. = Mode = Range with the maximum observations = Range = (X max – X min) represents = spread of the distribution.(C) MEASURES OF CENTRAL TENDENCY: Average (Mean) = Median = Midpoint of the distribution of the data i.com . 50% above and 50% below.
xn are the observations n = number of observations (sample size). 72. -------------------.5: Consider the following Sample Data: Mr. 70. 71. Mode. 71. Asian Institute of Quality Management 69 www. N = number of observations (population size). The pattern is as under: 70. 68. Median. 69. x2 . Iqbal checks his weight every fortnight. 69. 71. Calculate Mean.s= (x1 – x--)2 + (x2 – x--)2 + -----------.com .+ (xn – x--)2 (n -1) where. Exercise . Standard Deviation. x1 .aiqmindia. 69. Range.
Mean. A strong “central tendency “ (i. iii.aiqmindia. and Mode are close to each other) indicates less variation in the process. it means that “range” is higher i. Asian Institute of Quality Management 70 www.Typical Conclusions from Histogram: i. presence of a higher variation in the process More than one “Mode” indicates presence of another distribution imposing on the main distribution and also needs to be investigated as a cause of variation.com .e. ii.e. If the bars are more spread out. Median.
Asian Institute of Quality Management 71 www.aiqmindia.com .
After plotting the data points for (say) Y Vs X1.e. it’s a POSITIVE Co-relation. CO-RELATION DIAGRAM / SCATTER DIAGRAM: i) PURPOSE: TO FIND THE CTPs IN THE PROCESS Y : Dependent Variable Xs (X1.6. X2. X2. b) If Y decreases as X1 increases. ii) We draw Scatter Diagram to see the kind of relationship of Y with each of the Xs i. Asian Institute of Quality Management 72 www.Xn): Independent variables. it’s a NEGATIVE Co-relation. a) If Y increases as X1 increases. X1. .Xn. X3.com ..aiqmindia. . X3. we draw a best fitting line.
com .Asian Institute of Quality Management 73 www.aiqmindia.
aiqmindia.com .Asian Institute of Quality Management 74 www.
3 to 0.69 OR 0.3 to – 0.0 to – 0.0 Weak Co-relation Most of the points in Scatter Diagram are far from the best fitting line. No Co-relation You cannot draw any type of best fitting line.0 OR 0.29 OR 0. Co-relation Coefficient ’r’ lies between .29 CTP NOT CTP NOT CTP Asian Institute of Quality Management 75 www.com .7 to 1.69 Co-relation Coefficient ’r’ lies between 0.Strong Co-relation Most of the points in Scatter Diagram are very close to the best fitting line.0.0.7 to -1. Co-relation Coefficient ’r’ lies between .0 to 0.aiqmindia.
Asian Institute of Quality Management 76 www.MULTI MODES FISHBONE DIAGRAM – BRAIN STORMING .VITAL FEW.ROOT CAUSE ANALYSIS . APPRAISAL.HELPS TO FIND CTQs and CTPs HISTOGRAM – FREQ.MULTI-VOTING (NOMINAL GROUP TECHNIQUE) SCATTER DIAGRAM – CORRELATION BETWEEN TWO VARIABLES [RELATION OF CTQ WITH CTP(s)] .VALUE ANALYSIS.Summary: FLOWCHART – MAKES PROCESS STEPS VISIBLE .HELPS TO FIND ROOT CAUSES .aiqmindia.CORRELATION COEFFICIENT ( r ) CONTROL CHART – EXPLAINED IN NEXT SECTION.CENTRAL TENDENCY: MEAN / MEDIAN / MODE . OF DATA DISTRIBUTION (CONTINUOUS DATA) . TRIVIAL MANY . PREVENTION CHECKSHEET – DATA RECORDING DEVICE (COUNT DATA) PARETO CHART – PRIORTIZATION TOOL (COUNT DATA) .com .RANGE .
2. 3. 5.aiqmindia. 1. Defect Type Logic Assignment Functionality Interface Understandability Consistency Testability Standards Documentation Others TOTAL Tally Marks Count 17 5 13 2 4 7 2 21 4 5 B) Draw Pareto Chart for the above data: Asian Institute of Quality Management 77 www.com . 4. 9. 7. 8. 6.:ADDITIONAL EXERCISES: Defect Counts in a Code Review: A) Present the following data in the form of a Check Sheet: Sr. 10.
C) Draw Scatter Diagram for the following data: Sr. 9.com . 6. Independent Variable (System Size in Function Points) 800 300 1500 500 1800 3000 5500 4000 6500 4500 Dependent variable (Effort in Work Months) 20 10 80 15 90 220 400 300 500 310 Asian Institute of Quality Management 78 www. 10. 8. 2. 3. 7. 5. 1.aiqmindia. 4.
aiqmindia. such as inspection. Edwards Deming Asian Institute of Quality Management 79 www. USE OF SPC IN SIX SIGMA With its emphasis on early detection and prevention of problems. W. SPC has a distinct advantage over other quality methods.10.com .
1 SPECIFICATION LIMITS: While we say that customer does not like variation. these control limits must be within the specification limits.10. Upper Specification Limit (USL) Lower Specification Limit (LSL).aiqmindia. USE OF SPC (STATISTICAL PROCESS CONTROL) IN SIX SIGMA: 10. These are called: . we create a control chart with the use of statistically determined upper and lower control limits drawn on either side of a process average. These are called as the: . 10.com .3σ a) CAPABLE PROCESS: The control limits are determined by the data of our process. These are used as WARNING LIMITS and if the process is capable. b) PROCESS IN CONTROL: If the control chart shows that the collected data points are within the upper and lower control then the process is said to be IN CONTROL. does it mean that our process must achieve ZERO variation? Not really: Customer is willing to accept variation within certain limits. Upper Control Limit (UCL) = x-bar + 3σ Lower Control Limit (LCL) = x-bar . Asian Institute of Quality Management 80 www.2 CONTROL LIMITS: a) To monitor our process.
com .aiqmindia.Asian Institute of Quality Management 81 www.
He calculated: a) Specification Width (SW) = USL – LSL b) Process Width (PW) = UCL – LCL = (x-bar + 3σ) – (x-bar – 3σ) = 6σ. Asian Institute of Quality Management 82 www.73 % of the data under the normal distribution curve is corresponding to these limits. x-bar Standard Deviation i. So: Process Capability Index: Cp = SW / PW = SW / 6σ PROCESS IS SAID TO BE CAPABLE ONLY IF Cp IS > 1. Shewhart chose the control limits as: Upper Control Limit (UCL) = x-bar +3σ Lower Control Limit (LCL) = x-bar .aiqmindia.e.com .e. “s” or “σ” Dr.3 CAPABILITY OF A PROCESS: The characteristics of any process are dependent on two elements: Mean i.3σ because 99.10.
Weights of 2 patients are given below in Kgs: Mr.39 Mr.4 69.com .31 Asian Institute of Quality Management 83 www.4 70.aiqmindia. LSL = 68 Kg as specified by the doctor). LSL.8 69. LCL for both persons in the example below and plot on a graph against the USL.5 70.Exercise: a) Calculate UCL.6 70 x-bar = 70 s = 0. Waseem 70 71 72 71 70 69 68 69 x-bar = 70 s = 1. Iqbal 70 70. b) Also calculate Process Capability Index Cp: (USL = 72 Kg.3 69.
LSL = 8.8 540.55 (535 Min).05 (545 Min).aiqmindia.1 σ : 3.Exercise : Calculate Process Capability Index Cp for the following: Arrival time in office: USL = 9. T = 540 Min A B Day-1: 543 541 Day-2: 544 540 Day-3: 536 539 Day-4: 537 540 Day-5: 540 542 Day-6: 541 538 Day-7: 545 539 Day-8: 538 541 Day-9: 540 540 ---------------------------------------------Mean: 539.05 Asian Institute of Quality Management 84 www.com .6 1.
4 CAUSES OF VARIATION – 2 TYPES: Causes for Variation Non-Assignable / Inherent Cause Variation Assignable / Special Causes variation (5 M’s or Environment) INHERENT CAUSE VARIATION IS ACCEPTABLE (If Cp is > 1 i.aiqmindia. LCL IS INSIDE USL.e. IF GOING OUT OF UCL. LEADS TO “CONTINUAL” IMPROVEMENT Asian Institute of Quality Management 85 www. Cp is < or = 1 WE NEED “BREAKTHROUGH” IMPROVEMENT (To reduce the inherent cause variation i.e.10. LCL) CORRECTIVE ACTION REQUIRED. the standard deviation) ASSIGNABLE CAUSE VARIATION IS INDICATED (If data-point is outside UCL or LCL on the CONTROL CHART) (NEED TO DETERMINE ROOT CAUSE.com . LSL) In case. UCL.
7 cm specified by the customer. the operator randomly selects 3 samples every hour.10.8 11 AM 4.5 cm Asian Institute of Quality Management 86 www.4 10 AM 3. If the measured values stay within these limits. LSL= 3.5 3 PM 3.3 12:00 4. measures them and enters the average reading in the table below. Time Length 8 AM 4.2 9 AM 4.com .3.1 1 PM 4.0 cm in length with a given plus and minus tolerance of 0. A basic control chart may be developed with the data in the table above.0 cm Target 3.2 2 PM 4.9 4 PM 3.5 cms. The operator has been instructed to stop the process and alert the line supervisor if any measurement should go “outside” these limits. These rubber bands are required to be 4. These limits are at 3.aiqmindia. As these rubber bands are produced.5 and 4.8 The process owner has determined a set of limits (UCL / LCL) for the product length.5 TRANSFORMING DATA TO CHARTS: Consider a process which cuts rubber bands. the operator lets the process run. It means that USL= 4.5 cm 8 9 10 11 12 1 2 3 4 5 6 Time 7 4.7. 4.
com . the operator will allow the process to continue. The process cannot be allowed to continue.5 cm 8 9 10 11 12 1 2 3 4 5 6 Time 7 4. the control chart shows if the collected data are within the upper and lower control limits.aiqmindia. Therefore. At 5 PM. There are no products produced “outside” the limits imposed by the process owner. In other words.: The average of samples picked measures only 3.Analysis of Data / Chart: 1. Such a process is said to be IN CONTROL or STABLE or PREDICTABLE. The process parameters (CTPs) and outputs (CTQs) are monitored over time and should remain within the control limits.0 cm Target 3.4 cms. 2.5 cms. Something in the process has changed for the worse and must be addressed as soon as possible. 4. Most of the rubber bands produced are longer than 4 cms. Asian Institute of Quality Management 87 www.5 cm Out of Control Significance of this effect: This is an “out of control” point. This is outside the given control limit of 3. The operator will stop the process and alert the line supervisor.
These are indications of an “assignable cause”. Hence we need to also look at one more process capability index Cpk (Cp is valid only for a non-shifted process and is called Short Term Capability Index) Cpk is calculated for a shifted process and is called Long Term Capability Index Cpk = Min. THE CONTROL CHART ACTS AS AN ICD 10. This is again due to assignable causes.3σ from the center line (i.e.6 SHIFT OF THE MEAN: Motorola observed that the processes (normal distribution curve) tend to shift over a period of time. either side) 2.com . of USL – Mean 3σ OR Mean – LSL 3σ Asian Institute of Quality Management 88 www. Six (or eight) points in a row.aiqmindia.The typical rules as to when the process is considered as “out of control” OR is “likely to go out of control” are: 1. all increasing or all decreasing. Seven (or nine) points in a row on the same side of the center line 3. One point more than + / .
3. 1. Cpk and comment if Process is Capable or not? Sr.Exercise: Calculate Cp.0 1.8 1.0 1.0 1. USL +5 +5 +5 +5 LSL -5 -5 -5 -5 T 0 0 0 0 Mean -1 +3 +4 0 (No Shift of Mean) Cp=Cpk σ 1.aiqmindia. 6. 4.com .0 5.2 1. 2. +10 +10 +10 0 0 0 5 5 5 +3 +3 +7 0.2 Asian Institute of Quality Management 89 www. 7.
Motorola was not contented with Shewhart’s fitting +/.3 σ within USL and LSL. Motorola defined this as a SIX SIGMA PROCESS.aiqmindia.e. Asian Institute of Quality Management 90 www.e. Cp = SW / PW = SW / ½ SW = 2. (see figure below).Further. we reduce the σ so much that PW becomes ½ of SW.com . to fit +/. i. They targeted a much higher level of process capability i.6 σ within USL / LSL. In this situation.
Asian Institute of Quality Management 91 www.aiqmindia.com .
0 5. Process is not capable to meet requirements of customer i.com .e.0 63 0. which is directly dependent on the inherent cause variation in a process.5 6.0 2700 0.5 Sigma Shift 66. b) For a business process.66 2.e.16 1.5 Sigma Shift) Defect Count with 1.810 3.002 0. ACTION: Remove assignable causes using Corrective & Preventive Action.83 1.e. the “Sigma Capability (Cp) or Sigma Level” is a measurement that indicates how well that process is performing.5 4.0 1.10. Process is likely to go out of control OR Mean has shifted (i.0 6.0 1. 10.7 CONTINUAL IMPROVEMENT Vs BREAKTHROUGH IMPROVEMENT: Continual Improvement (When do we need?) Process is out of control (Data point outside UCL or LCL) Breakthrough Improvement (When do we need?) Cp is < or = 1 OR i.aiqmindia. Sigma Level Cp Defect Count without Shift Cpk (1. Cpk is not equal to Cp). Variation due to Inherent Causes is High -----ACTION: Reduce Std.57 0. 7 TWO MEANINGS OF SIGMA: a) The term “Sigma (σ)” is used to represent “Standard Deviation”.4 Asian Institute of Quality Management 92 www.210 233 3. Dev.33 1.
DMAIC METHODOLOGY Improvement usually means doing something that we have never done before.com .11.aiqmindia. Shigeo Shingo Asian Institute of Quality Management 93 www.
Systemic Action) & Process Improvement • Leads to: • Continual Improvement Leads to: • Continual Improvement Leads to: Design / Redesign of product / process with fewer defects (goal is to start at a higher sigma level like 4.5) + • Breakthrough Improvement 11.1 DMAIC is a five – phase improvement cycle as under: D – Define M – Measure A – Analyze I – Improve C – Control Asian Institute of Quality Management 94 www.com .0 Six Sigma Project Methodologies: 8. Permanent Corrective Action.Discipline Methodology (by Ford) Used for: • Problem Solving DMAIC Methodology DFSS (DMADV) Methodology Used for: • Design of new product / process Re-design of existing product / process Used for: • • Problem Solving (Root Cause Analysis.11.aiqmindia.
aiqmindia.who will signoff Define Tollgate Review (as per checklist) Asian Institute of Quality Management 95 www.Team Guidelines .Goal Statement .3) • .who will be accountable .Constraints .who will review .Preliminary Project Milestones • • Develop High Level Process Map Specify Responsibilities & Authorities for the Project • • SIRPORC (SIPOC) Roles of the team members: – who will give inputs . C Gathering and CTQ definitions • Develop Project Charter (Sample Project Charter shown in Section 11.Assumptions .2 THE DMAIC PROCESS – KEY DELIVERABLES: A) DEFINE PHASE: Confirm the business-opportunity. Define Phase Steps / Tools • Define Customers and their Requirements (CTQs) • V.Business Need Addressed .Resources Needed .11. CTQs) of the project.Problem Statement . O.Scope / Boundaries of the Project .e. define the boundaries and goals (i.com .Team Composition .
CT Matrix Questionnaires.com . Data Sets • Calculate Process Capability and Sigma Baseline. • Cp. DPMO / Sigma Level Calculations. Quantify the problem. Unit and Metrics • Steps / Tools Based on CTQs and Process Knowledge.aiqmindia.b) MEASURE PHASE: Gather data to establish the “current / baseline status”. Measure Phase • Define Defect. Sampling-plans • Develop Data Collection Plan & Formats • • Validate the Measurement System • Measurement System Analysis (MSA) . Benchmarking • Identify the CTPs • Using Pareto. Cpk.CALIBRATION • Collect the Data And Tabulate the Data • Check Sheet. Opportunity. Correlation Analysis. Measure Tollgate Review (as per checklist) Asian Institute of Quality Management 96 www. what is actually going on at the workplace with the process as it works today.
Analyze Tollgate Review (as per checklist) Asian Institute of Quality Management 97 www. Analyze Phase Steps / Tools • Identify Value / Non-Value Added Process Steps • Process Map Review and Value Analysis • Identify Sources of Variation • Histogram. Box & Whisker Plot Cause and Effect / Fishbone Diagram. Pareto Correlation Analysis. Hypothesis Testing.c) ANALYZE PHASE: Analyze and determine the root cause(s) of the defects.com . Regression Analysis. Ask why 5 times. Design of Experiments • Determine Root Cause(s) • • Determine Vital Few X’s.aiqmindia. SWOT analysis. • Brainstorming. Control Chart. Y=f(X) Relationships • • Prepare Action Plan to explore various solutions for the causes. Interpret the data to establish cause – and – effect relationships.
DOE.com .d) IMPROVE PHASE: Develop solutions targeted at the confirmed causes Improve Phase Steps / Tools • Develop Potential Ideas & Solutions • Brainstorming. • Cp. DPMO. • Assess Failure Modes of Potential Solutions • FMEA • Reduce risks associated with potential solutions • Mistake Proofing • Plan & Execute solution on Pilot basis Fine-tune the Potential Solution • Verification • • Brainstorming • Implement Complete Solution • Validation • Check Performance Levels after Improvement. Sigma levels.aiqmindia. Cpk. Improve Tollgate Review (as per checklist) Asian Institute of Quality Management 98 www.
Control Phase Steps / Tools • Authenticated Calculations of Savings Achieved • Determining improvement in process capability & process sigma • Develop & Implement the Documentation Plan • Standardized Work (SOPs. Control Tollgate Review (as per checklist) Asian Institute of Quality Management 99 www. etc.) • Develop & Implement the Training Plan Developing & Implementing the Control Plan Plan the Audit Schedules & Audit Requirements. WIs.com . (Control future process performance). • Competency Matrix • • Control Charts • • PDCA • Transfer of Project to ProcessOwner.aiqmindia.e) CONTROL PHASE : Implement procedures to make sure the improvements / gains can be sustained.
11. b) Goal Statement: (Goal statements must be SMART): • • • • • Specific Measurable Achievable Realistic Time-Bound.3 SAMPLE PROJECT CHARTER – (TPM Printers) a) Problem Statement: WHAT IS A PROBLEM STATEMENT? The problem statement is an accurate description of a current state that adversely impacts the enterprise.com .aiqmindia. It includes baseline data about the current state in terms of the baseline metrics. including 23% rejected due to “uneven color of ink” and 17% noted as ”late deliveries”. Asian Institute of Quality Management 100 www. For Example: 40% of orders delivered to corporate clients of TPM Printers’ are not meeting customer requirements. For Example: Reduce “delivery errors” by 60% and cut “rework costs” by 50% in the next 5 months.
Tuesday mornings from 9 am to 10 am. Decisions will be made by consensus. Procurement (Green Belt) Asian Institute of Quality Management 101 www. Manufacturing (Green Belt) K. Usman.. Peter. If consensus can't be reached. Manufacturing (Green Belt) Ayub Khan.000. Sales (Green Belt) S.e. g) Team Members: The team is comprised of the following members: M. Black Belt) Mohammed S. Yezdi. f) Team Guidelines: The team will meet at least once a week. continued high levels of delivery errors threaten our position as leader in this growing industry. Also. d) Scope / Boundaries of the Project: In-Scope Orders delivered to Corporate Clients Out-Scope Orders delivered to clients other than Corporate Clients e) Constraints: Team members will be expected to devote 25 to 30% of their time to the project .com .00 per month. They will need to be relieved accordingly from their existing jobs.aiqmindia. Product Design (Team Leader i. Production Manager (Champion) T. Rehman.c) Business Need Addressed: These defects are costing the organization nearly SR 80. the Team Leader will make the final call..
the team will have to work aggressively and rapidly. 3 weeks) MEASURE – Oct 14 (Approx. teams may move on to subsequent phases only to stall and cycle back through “Define.h) Preliminary Project Plan: To achieve our goal and results by our target date. • • In many ways. The following are milestones for completing each phase of the DMAIC process: DEFINE – Aug 16 (Approx. the Define phase is a very important phase of the DMAIC cycle. • Asian Institute of Quality Management 102 www. 3 weeks) IMPROVE – Dec 31 (Approx. If this phase is not done thoroughly.” This phase should be emphasized and teams should not move forward until the Sponsor / Process Owner signs off on it. 3 weeks).com . 8 weeks) CONTROL – Jan 28 (Approx.aiqmindia. 8 weeks) ANALYZE – Nov 20 (Approx.
com .aiqmindia.EXERCISE: Doctor to Mr. Iqbal: “You are overweight by 15 kg. You need to reduce your weight from present 87 kg to 72 kg. else you are prone to heart-attack due to hereditary reasons”. Iqbal runs a proprietary business. • • • • • • • • • • Write down the problem statement Write down the goal statement What is the business need? What is the CTQ? What are the controllable CTPs? What will you measure during the “Measure” phase? What calibration will be required to eliminate error due to measurement? Will it be possible to establish a relationship between the CTQ and the CTPs in this case? What will Mr. Mr. Iqbal control during the “Control” phase? Asian Institute of Quality Management 103 www.
4 Details of complaint Accurate Analyze complaint for root causes Root Causes Correct root causes found Resolution Team Members 2.4 Prepare Corrective Action Plan Implement Corrective Action Prepare Preventive Plan Implement Preventive Plan Asian Institute of Quality Management 104 www.PREPARING A SIRPORC – EXAMPLE (PROCESS: CUSTOMER COMPLAINT RESOLUTION PROCESS) (Sequence of steps to be followed: P – O – C – RC – S – I – RS) Supplier Input (for process Sub-step) Requirements (to be fulfilled by supplier) Process (Sub-Steps) Output (from process Sub-step) Requirements (of customer) Customer External Customer Details of the problem Clear Description Record Complaint Complaint Registration Number Minimum Time taken to issue Registration Number * Resolution Team Member-1 * External Customer Resolution Team Member-1 Details of complaint Should understand the problem Arrange Correction Action taken to rectify the problem Problem should be resolved in first attempt * External Customer Resolution Team Members 2.com .3.aiqmindia.3.
Asian Institute of Quality Management 105 www. 6. Been given (or written) a brief project Rationale explaining the potential impact of our project on customers. 1. Identified the primary customer and key requirements of the process being improved.aiqmindia.com . For our project we have . Prepared a detailed process map (SIPOC) of areas of the process where we expect to focus our initial measurement. Checklist for “Define” stage: If you can respond “yes” to each statement below. a preliminary plan and schedule . Prepared a Goal statement defining the results we’re seeking from our project. profits. with a measurable target. 4. you’re off to a good start with your project. and are ready to move into the “Measure” phase of DMAIC. 8. including a list of constraints and assumptions.the problem statement – focusing on symptoms only (not causes or solutions). 5. 2. a review of players and roles.11. 3. 7. Reviewed your charter with your sponsor for this project and confirmed his/her support. Confirmed that our project is a worthwhile improvement priority for our organization and is supported by business leaders. No solutions are proposed in the Goal Statement. and its relationship on the company’s business strategies. Prepared other key elements of a DMAIC project charter. Composed and agreed to a two to three sentence description of the problem as we see it.4 TYPICAL CHECK LISTS FOR TOLL-GATE REVIEWS: A. and a process scope.
3. Prepared and tested our measurement system. 5.com .aiqmindia. 6. 1. Used data to prepare baseline process performance measures. Tested our operational definitions with others to ensure their clarity and consistent interpretation. and are ready to move into the : Analyze” phase of DMAIC. complete data. Asian Institute of Quality Management 106 www.B. 7. Determined what we want to learn about our problem and process and where in the process we can go to get the answer. including training of collectors and assessment of data collection stability. For our project we have . Identified an appropriate sample size. you’re doing well with measurement. Made a clear. 9. 2. Checklist for “Measure” stage: If you can respond “yes” to each statement below. Developed clear. 4. Developed and tested data collection forms or check sheets which are easy to use and provide consistent. Identified the types of measures we want to collect and have a balance between effectiveness/efficiency and input /process/output. subgroup quantity and sampling frequency to ensure valid representation of the process we’re measuring. reasonable choice between gathering new data or taking advantage existing data collected in the organization. unambiguous operational definitions of the things or attributes we want to measure. 8.
D. 3. etc. Asian Institute of Quality Management 107 www. Verified our solutions with our sponsor and received buy-in and the go-ahead. 4. including a pilot strategy. and confirmed our decision with the project sponsor. Developed a plan for piloting and testing the solutions. Conducted a value and cycle time analysis. Checklist for “Improve” stage: If you can respond “yes” to each statement below. and identify potential root causes. 5.C.aiqmindia. 7. 4.com . 2. 3. disconnects and redundancies that could contribute to the problem on which we are focusing. and are ready to plan to “Control” your process/solutions. Examined our process and identified potential bottlenecks. results assessment. action plan. Used the narrowing and screening techniques to further develop and quality potential solutions. Created a “Solution Statement” for at least two possible proposed improvements. 2. understand reasons for variation in the process. Analyzed data about the process and its performance to help stratify the problem. as opposed to process improvement. schedule. 6. Checklist for “Analyse” stage: Can you respond “yes” to each statement below: For our project we have 1. Created a list of innovative ideas for potential solutions. Ensured that we understand the key working of the process so we can begin creating a new process to meet the needs of the customer efficiently and effectively. Evaluated pilot results and confirmed that we can achieve the result defined in our Goal Statement. Made a final choice of our solutions based on success criteria. For our project we have 1. Evaluated whether our project should focus on process design or redesign. you’ve achieved success with your improvement. locating areas where time and resources are devoted to tasks not critical to the customer. 5.
8. Created and put in place a plan to the solution . Prepared all essential documentation of the revised process. measures and responses to problems on the process. Identified an “owner” of the process who will take over responsibility for our solutions and for managing continuing operations. Developed (with the Process Owner) Process-management charts detailing requirements.com . Forwarded other issues / opportunities which we were not able to address to senior management. Identified and implemented refinements to the solutions based on lessons from the pilot. Prepared a story documenting the team’s work and data collected during our project. E. 6. 4. 1. 7. including key procedures and process maps. 2.with refinements – to a complete implementation. Selected ongoing measures to monitor performance of the process and continued effectiveness of our solutions.aiqmindia. 10. Asian Institute of Quality Management 108 www. 5. you’ve completed all key steps in your DMAIC project and are ready to celebrate and maintain your improvement. Celebrated the hard work and successful efforts of our team. Compiled results data confirming that our improvement has achieved the Goal defined in our DMAIC team Charter. 9. Determined key charts / graphs for a “process Scorecard” on this process. 8. Checklist for “Control” stage: If you can respond “yes” to each statement below. 9. Considered potential problems and unintended consequences of the solutions and developed preventive and contingent actions to address them. 3. For our project we have .
Q3. One of the standard approach for Six Sigma project methodology is: CTQ VOC DPMO CTP DMAIC. The fluctuation in the input of a process Something that is good for a process Something that should be reduced. d. What is variation? a. d. c. e. b. c. c. Q2. Something we should ignore if possible A measurable characteristic not conforming to a customer requirement All of the above. e.109 - . All of the following are phases in the DMAIC model except: a. b. b. b. to improve the process All of the above None of the above. d. Q1.QUIZ SSGB – 02 Note: Only one choice for each of the following questions is correct. Measure Control Improve Automate Define. Q4. a. d. e. c. e. A “Defect” is: Something that the customer is willing to pay for A feeling that the process is causing a problem. a. You have to choose the answer that seems most applicable / correct to you. .
If we know that Y depends mainly on X1 and X3. Six Sigma Cause and effect diagram. b. a. Q7. e. d. d. Rectifying the mistake that has occurred Preventing mistake from occurring again Preventing potential mistake from occurring in the first place None of the above. This is a technique by which an organization measures the performance of a process against similar best-in-class processes and uses the information to improve its process. Q6. In the equation for process approach Y = f (X ). c. c. then we know that: a. d. . b. Examples of hidden loss include the following except: a. d. which letter represents the effect for a cause? a. X4 and X5 are CTPs Y has no relation to X1 and X3 None of the above. b. Y f X None of the above. Benchmarking Gap analysis 8-Discipiline methodology.110 - . Q9. and X5 are not so important X1 and X3 are CTQs X2. b.Q5. c. X4. “Corrective Action” means: a. e. X2. c. c. d. Q8. Capacity losses due to rework and scrap Stockpiling of raw material to accommodate poor yield. b. Rush deliveries All of the above.
Q10. “Correction” means: a. b. c. d. Rectifying the mistake that has occurred Preventing mistake from occurring again Preventing potential mistake from occurring in the first place None of the above.
Q11. “Preventive Action” means: a. Rectifying the mistake that has occurred b. Preventing mistake from occurring again c. Preventing potential mistake from occurring in the first place d. None of the above. Q12. Training new employees in respect of their job is mostly a: a. b. c. d. e. Cost of Appraisal Hidden Cost Cost of Prevention Cost of Prevention + Internal Failure Cost Internal Failure Cost + External Failure Cost.
Q13. Conducting Quality Management Audits is mostly a: a. b. c. d. e. Cost of Appraisal Hidden Cost Cost of Prevention Cost of Appraisal + Hidden Cost Internal Failure Cost + Hidden Cost.
Q14. Test marketing a product / service before full-scale launch is mostly a: a. b. c. d. e. Cost of Appraisal Hidden Cost Cost of Prevention Cost of Appraisal + Hidden Cost Internal Failure Cost + Hidden Cost.
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Q15. Corrective Action is mostly a: a. b. c. d. e. Cost of Appraisal Hidden Cost Cost of Prevention Internal Failure Cost + Hidden Cost Internal Failure Cost (Or External Failure Cost) + Hidden Cost.
Q16. Product Replacement due to customer-complaint is mostly a: a. b. c. d. e. Cost of Appraisal Hidden Cost Cost of Prevention Internal Failure Cost + Hidden Cost External Failure Cost + Hidden Cost.
Q17. When we increase cost of conformance, the cost of external failure: a. b. c. d. e. Might actually go up Might go down Will mostly not change Will mostly come down sharply None of the above.
Q 18. When we increase cost of conformance, the sigma level of the process: a. b. c. d. e. Is likely to increase Might go down Will mostly not change Will certainly come down None of the above.
Q 19. When we increase cost of appraisal for outgoing goods, the cost of internal failure: a. b. c. d. e. Is likely to increase Might go down Will mostly not change Will mostly come down sharply None of the above.
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Q20. When we increase cost of conformance, the total cost of quality: a. b. c. d. e. Is likely to increase Might go down Will mostly not change Will certainly come down None of the above.
Q21. CTPs are inputs that are critical to process and a. b. c. d. e. Measurable but not Controllable Controllable but not Measurable Measurable and Controllable both Neither Measurable, nor Controllable None of the above.
Q22. Which of the following fields defines quality as “satisfaction of customer requirements”? a. b. c. d. e. Economics Production Management Personnel Management Quality Management None of the above.
Q23. Identify the true statement out of the following: a. b. c. d. e. CTP must have a strong relationship with CTQ CTP can have a weak relationship with CTQ CTP must be developed from the VOC CTP has no connection with VOC None of the Above.
Q24. A process has 33 defects in 350 units produced and opportunities for error are 9 nos. The DPU is: a. b. c. d. e. 0.084 0.081 0.077 0.094 none of the above.
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5 5. d. Q26. c. c.865 58. b. b. d. 5.55. a.20 3. .44 4. d. Q27.09 4. e. 490 590 450 460 none of the above. The process sigma level is: a. f. b.2 5. 5.1 4. A process has 21 defects in 3300 units produced and opportunities for error are 13 nos. e. Determination of the _________ _________ is the most natural step at the beginning of any six sigma project. d. A process has 20 defects in 310 units produced and opportunities for error are 11 nos.95 5.114 - . e. c. The DPMO is: a. e. Baseline DPMO Corelation Coefficient Critical Path All of the above None of the above. A process has 3 defects in 34000 units produced and opportunities for error are 17 nos.Q25. c. The process sigma level is: a.65 4. b.02 Q28.
b. e. . c. Y is normally used to represent: a. Customer-Supplier Relationship normally implies: a. In a loan process. c. Q30. d. Supplier and customer must work together to add value for the owners of the business e. Q31. The Overall process level The Customer level The Supplier level None of the above. b. d. Major focus is on increasing supplier satisfaction Major focus is on cost reduction Major focus is on drawing flow charts Major focus is on improving the way things are done. Q 32. b. d. Supplier and customer must work together to add value for the external customer d. e. SIPOC is a view of the process taken at: a. Size of loan Size of Loan and time taken to process the loan Number of documents Number of forms to be completed Time taken to process the loan. None of the above. Q33. which of the following is not a CTP: a. None of the above. c. Which of the following is true about Six Sigma Methodology: a. The variation in a process The efficiency of a process The effectiveness of a process The output of a process.Q29. b. Supplier must plan to maintain under the table dealings with the customer’s employees c.115 - . c. Customer and supplier must stretch each other to achieve best of negotiations b. d.
CTPs must be identified during the _____________ phase of DMAIC: a.Q34. f. d. Q38. Analyze Improve Analyse Define None of the above. c. Are generally less than 15 as a thumb rule d. Q35. a. Are generally less than 10 as a thumb rule c. e. Sales Turnover Profitability Market Share All of the above None of the above.116 - . Measure Improve Analyse Define Control None of the above. e. e. Are both (a) and (c). d. c. . Opportunities for error: a. b. Are the different types of mutually exclusive defects that can occur in a process b. b. c. Pilot solution is verifed during ____________ phase of DMAIC. SIPOC is a must in _____________ phase of DMAIC: a. b. Measure Improve Analyse Define All of the above. Cross-Functional goals for an organization include: a. d. c. e. b. d. Q37. Q36.
Q39. Standardization of work and its documentation are done during ____________ phase of DMAIC. a. b. c. d. e. f. Measure Improve Analyse Define All of the above None of the above.
Q40. Training for six sigma implementation should generally begin: a. b. c. d. e. At operator level At top and senior management level At middle-management Level With suppliers / contractors With important customers of the organization.
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12. LEAN MANAGEMENT
The most dangerous kind of waste is the waste that we do not recognize. Shigeo Shingo
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12. LEAN MANAGEMENT:
12.1 Lean management defines the value of a product or a service from the customer’s point of view.
Customers do not care as to how hard you work (or what is the technology that you use) to create the product or service. They will evaluate your product or the service by looking at how well it is going to fulfill their requirements.
In Lean Management, WASTE is defined as anything that does not add value to the end product: For Example: a) Repairs carried out on a product during warranty. b) Rework at a customer’s site. c) Carrying excess inventory in your factory or warehouse. 12.2 Lean Management Methods: Lean Management is based on the use of cross-functional teams who keep working to find ways to give more value to customer. The methodology is called “KAIZEN” i.e. Change (KAI) . for the better (ZEN).
The focus of Kaizen and Lean Management is to continually find and remove waste from the organization’s processes.
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etc. communication. Analyze the wastes and finding the root causes for these wastes.There are four steps in waste elimination: 1. Reduce expenses on electricity.120 - . expenses for welfare. :HOW ORGANIZATIONS ACHIEVE COST – REDUCTION: Traditional company Organization implementing Lean. etc. water. 4. Apply of these solutions and eliminate the waste. To become lean it is very necessary to understand the fact that wastes are there. gas. 2. insurance. Identify the fact that there are wastes to be removed. You must be able to find out where these wastes do exist. 3. Focus on eliminating the 7-wastes: • Waste of overproduction Waste of making defects Waste of waiting Waste of motion Waste of transportation Waste of processing itself Waste of inventory • • • • • • • • .Management • Reduce cost of materials / parts used in production Reduce labor cost – wages. Find the solution for these root causes.
The person who writes down the minutes / notes must be very attentive and accurate in the reporting. Involving too many people. waiting for the meeting to end. Repeating the same point again and again. Chairperson in a meeting takes a call on the cell phone. Every member in the team must have a purpose to be included. More frequent meetings than needed. Record of the information and decisions has to be made accurately. . so people have to keep on waiting. • • • Waiting: • • • Meeting starts late. else this can lead to defects and re-work. Too many PPT slides. whereby everyone else in the group is waiting for him to finish. Trying to take a decision without having sufficient data could lead to wrong decision-making.EXAMPLE: We can apply the framework of the 7 types of waste to the way meetings are conducted in organizations: Overproduction: • • • • • Too many topics in one meeting. Disinterested persons.121 - . Including a non-contributing member is another form of defect. This is a kind of re-work for the speaker. Defects: • Lack of attention by team members leads to requests like: “please repeat the last point”.
Should it be a face-to-face meeting or can we manage through a conference call? Should we circulate a detailed write-up in advance so that the team members can come well prepared? • • . This happens when agenda for the meeting is not prepared or the agenda is not strictly followed. people tend to wander from topic to topic. back to Topic – B and so on. • Meetings can lead to more inventory if the team keeps generating new ideas instead of focusing on review of the existing projects and resolving the issues that are slowing down these projects. (Sometimes it is better to finish the points that can be completed easily and schedule a separate meeting for some point where more thought / data is needed). Processing: • The manner in which a meeting is conducted.Motion: Examples of excess motion during a meeting would be: • • Searching for a file or PPT during the presentation Looking for some paper or document during the discussion. Moving from Topic – A to Topic – B to Topic – C. Inventory: • More issues are raised and the group strays from the focus on existing projects. we can say that inventory has been generated. Transportation: While conveying ideas.122 - . When more tasks are started (instead of completed) in a meeting.
VALUE STREAM PROCESS MAPPING The average American worker has fifty interruptions a day.123 - . of which seventy percent have nothing to do with work. Edwards Deming . W.13.
you must know what people are presently doing i. They could identify improvement opportunities. - - - - - - - .124 - . Maps may be used to orient new employees. Some of these steps may require additional attention or be non – value added and could therefore be eliminated.13.1 Using Process Map to Improve a Process: To improve any process. the customer complaints or defects are occurring. VALUE STREAM PROCESS MAPPING: 13. A Process Map may be used as an Analysis tool to review where in the process.e. “Where are the contributions by these persons or functions in relation to the customer (internal or external)” A Process Map provides a Relationship Map View – how various functions and individuals interface with one another. The exercise of generating a process map often uncovers process steps previously not considered. They could identify alternative ways to get things done.
Activity RVA (Required by customer) BVA (Not required by customer but useful for business) NVA (Neither benefits Customer nor the business) Understand Customer Requirements Checking by Customer Errors Corrected Prepare Execution Plan Keep Plan aside to attend to another urgent activity Refer Plan for Approval by Senior Implement Plan Arrange Proforma Invoice Await Delivery Clearance from Admin Ship to customer Customer’s sign 15 5 7 10 20 5 20 8 15 5 5 .13.125 - .2 Identifying Value Addition (Time spent in hours): • RVA – Real Value Adding activity. • BVA – Business Value Adding activity (to be minimized) • NVA – Non Value Adding activity (to be eliminated).
13. IMPLEMENT. VALIDATE.126 - . VERIFY.3 IMPROVING A PROCESS MAP: Step – 1 Draw “As Is “ Map Map will reflect current / baseline process Step – 2 Draw “Should be “ Map Map will reflect all non – value added steps removed. appraisals & preventions added for likely failure modes (critical control points) Step – 3 Compare Map Compare Maps in steps 1& 2 and Identify actions to move to “Should be” level Step – 4 IMPROVE PROCESS. MAKE CONTROL PLAN Take action to improve process to the “Should be” level .
Ray Bradbury .14.127 - . FAILURE MODE AND EFFECT ANALYSIS (FMEA) Living at risk is jumping off the cliff and building your wings on the way down.
14. Key Concept:
Capture defects in YOUR shop so that the customer will not detect them in his operation. That is, “gate” the defects. Surfacing the problems early on in the production cycle will enable you to solve them with a minimum expenditure of your resources (time, money).
14.1 Why perform an FMEA? Why (Objective) : To prevent Design / Process related problems during Product Launch and / or subsequent production. By attempting to surface problems early before they have chance to occur. Save Time (a key factor today) and valuable resources (money, effort,--)
14.2 Questions which will need to be asked: 1. How can the System or Design fail? 2. What will the consequences be? 3. How serious will the consequences be? 4. What can be done to prevent the failure or minimize the probability of its occurrence?
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14.3 Organization’s Cost Analysis for Problem Resolution: - Product Design Stage - Process Design Stage - Product Pilot Build - Field Failure : : : : US $ 1,000 /US $ 10,000 /US $ 100, 000 /US $ 1,000,000/-
14.4 Information to have before starting an FMEA: Customer requirements (specifications) Engineering drawings, if applicable Information of previous failures in product or process Previous (or similar) FMEA’s Process Capability data (if available) Prototype Test data (if available) Defect / Failure information for other similar product / process.
14.5 Product in – use Conditions: While performing the FMEA it may be advantageous to know: a) How and where customer will use end product. Example: Product will in all likelihood be used in a high temperature salt atmosphere environment – a good promoter of corrosion.
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b) How customer may “abuse” end product. Example: Lap top computer falls from overhead luggage rack in airplane.
14.6 To carry out an FMEA, we need to calculate the:
Risk Priority Number: It is a numerical and relative “measure of overall risk” corresponding to a particular failure mechanism and is computed by multiplying the Severity, Occurrence and Detection numbers.
The RPN provides priority levels to potential failure mechanisms in terms of which need to be addressed first, second and so on. a) Severity: A numerical measure of how serious is the effect of the failure to the customer or violation of government law. Example: Will the component or system failure result in a mere nuisance or can it result in serious injury. The degree of severity is measured on a scale of 1 to 10, where 10 is most severe. Critical and Significant Characteristics: Critical Characteristics: A failure mode which can conceivably result in personal injury, loss of life or violate a government mandate (eg. Automobile emission standard) is considere Critical. Such a failure mode will be assigned a severity level (S) of 9 or 10 regardless of the level of occurrence or detection.
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The degree of Occurrence is measured on a scale of 1 to 10.131 - . .Significant Characteristics: A failure mode which is not deemed to be critical but likely to affect the process. c) Detection: A measure of probability that a particular failure mode would be detected in our own operation and not reach the customer. The level of Detection is measured on a scale of 1 to 10. b) Occurrence: A measure of probability that a particular failure mode will actually happen. Such a failure mode will be assigned a severity level (S) of 5 to 8 regardless of the level of occurrence or detection. where 10 signifies virtually no ability to detect the defect. where 10 signifies the highest probability of occurrence.
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Estimate the Severity Number (S). Recomputed RPN after corrective actions are completed 16. 5. Estimate the Detection Number (D) 9. Select a process. and re – compute the RPN 12.. 17. Classify the Severity (i. O. List recommended actions (where possible) to lower RPN 13. how may it fail) 3. sub-processes. Compute the Risk Priority Number (RPN = S x O x D) 11. take closer look at measures for Detection (D = 5 or greater implies “high risk”) 10. . What Design Verification measures were taken (eg. re – estimate S.e. List actual actions taken (eg. Develop a control plan and a contingency plan. Can the system fail because of customer abuse or other in – use conditions. sub – process or part.133 - . List the potential effect (or effects) of the failure 4.e. List potential causes / s or mechanism / s of failure 6. Estimate the Occurrence Number (O) 7. List potential failure mode / s (i.) responsible for completing actions 14.14. parts. X -ray system installed to check for voiding in metal casting) 15. 2. Repeat steps (1) through (15) for all processes. pilot run) 8. Prototype testing. D. If (D) is equal to or larger than 5. If so.7 Recommended “Road Map” for performing an FMEA: 1. List individuals (or depts. is it critical).
DPMO TO SIGMA CONVERSION CHART (APPENDIX – 1) .134 - .15.
252 3.063 3.810 32.810 59.810 56.144 3.026 3.018 3.810 64.242 3.810 53.162 3.314 3.810 55.810 35.810 33.054 3.224 3.153 48.810 43.810 47.810 3.345 .215 3.1888 3.810 36.072 3.Converting DPMO to Sigma DPMO Sigma Level DPMO Sigma Level 66.810 46.027 3.233 3.009 3.081 3.126 3.810 60.810 37.810 62.000 3.135 - .810 52.810 39.197 3.090 3.810 45.329 3.268 3.810 38.283 3.108 3.810 61.810 65.045 3.179 3.810 42.810 58.810 50.298 3.810 63.810 54.810 40.810 3.810 41.810 44.036 3.810 49.099 3.170 3.117 3.810 57.810 34.
453 3.810 19.400 5.810 16.753 3.046 4.810 23.406 3.591 3.810 11.499 3.810 9.810 6.810 22.810 29.038 4.841 3.437 3.568 3.810 25.728 3.810 18.614 3.810 14.001 4.210 6.023 4.810 28.810 27.600 5.069 4.031 4.300 5.DPMO Sigma Level DPMO Sigma Level 31.810 7.391 3.810 20.973 4.545 3.800 5.000 4.810 17.810 6.000 5.810 30.200 3.053 4.468 3.900 5.682 3.136 - .797 3.810 21.200 6.810 26.659 3.929 3.500 5.360 3.100 6.810 13.810 24.484 3.422 3.810 3.810 15.636 3.522 3.008 4.705 12.810 8.016 4.061 4.700 5.076 .376 3.885 3.810 10.
189 4.500 4.492 .900 2.900 1.346 4.091 4.234 4.099 4.174 4.106 4.100 3.500 3.159 4.100 4.800 2.600 1.300 2.700 2.200 3.100 5.121 4.900 4.166 4.000 1.600 3.378 4.300 4.411 4.362 4.137 - .400 4.200 2.200 4.114 4.500 2.600 2.DPMO Sigma Level DPMO Sigma Level 5.084 4.144 4.300 4.281 4.700 3.100 2.427 4.400 2.400 4.181 4.000 4.800 1.265 4.330 4.700 4.197 4.313 4.227 4.466 4.900 3.000 3.000 2.297 4.800 4.400 3.476 4.242 4.448 4.212 4.459 4.600 4.151 4.394 4.500 1.700 1.204 4.136 4.219 3.129 4.800 3.
579 4.056 195 190 185 180 175 170 165 160 155 150 145 140 135 130 125 120 115 110 105 5.516 4.175 5.300 1.022 5.014 5.099 5.642 4.611 4.737 4.201 5.167 5.184 5.000 5.116 5.547 4.201 5.DPMO Sigma Level DPMO Sigma Level 1.949 5.090 5.073 5.082 5.192 5.150 5.065 5.138 - .031 5.872 4.218 .100 1.796 4.706 4.107 5.158 5.005 5.000 900 800 700 600 500 400 300 233 230 225 220 215 210 205 200 4.133 5.200 1.674 4.141 5.124 5.048 5.039 5.
226 5.000 .417 45 40 35 30 25 20 15 10 5 3.370 5.768 5.463 5.278 5.DPMO Sigma Level DPMO Sigma Level 100 95 90 85 80 75 70 65 60 55 50 5.486 5.4 5.394 5.324 5.581 5.301 5.347 5.698 5.243 5.440 5.944 6.235 5.523 5.139 - .255 5.640 5.
ALMOST GIGANTIC FROG. SHE GAZED AT THE FROG’S PLEADING EYES AND SOON HER GIDDY NATURE GAVE WAY TO HER DOUBTS. “I HAVE NOT ALWAYS BEEN A FROG”. A GIDDY ENGLISH GIRL TRIPPED ON A RATHER LARGE. BUT WAS CHANGED INTO THIS GHASTLY FROG YOU NOW SEE BY AN UNGODLY. APPENDIX -2: Assuming that the letter “G” is a defect. THE FROG’S GREEN COLORING SEEMED TO GLOW BRIGHTLY AS HE CONTINUED “I WAS ONCE A GRACIOUS KNIGHT. FOR A LONG. LONG TIME THE GIRL’S MOTHER DID NOT AGREE TO THE NARRATION OF THIS HAPPENING. SHE DECIDED TO GRANT THE FROG’S WISH AND TOOK HIM HOME STRAIGHTWAY. MAGICAL GENIE. THERE ALONGSIDE HER GARDEN GATE WAS THE GRACIOUS KNIGHT. THAT NIGHT THE GIRL SLEPT GRANDLY AND SURE ENOUGH.140 - . HE CROAKED. WHILE STROLLING A GLEN. OF COURSE. GIGGLING. THE GIRL STAGGERED BUT REGAINED HER FOOTING AND WAS ABOUT TO GO ON WHEN THE FROG BEGAN TO SPEAK AND GESTICULATE TO GAIN THE GIRL’S ATTENTION. WELL STRANGELY ENOUGH. WHEN SHE AWOKE THE FOLLOWING MORNING. . PUTTING HIM BY HER GARDEN GATE.16. GEORGE GRENVIILE. THE SPELL CAN ONLY BE BROKEN IF I GAIN A GIRL’S GOOD GRACES AND SPEND A NIGHT IN HER GARDEN. ” THE AGOG GIRL WAS SKEPTICAL. A GENTLEMAN CALLED GALLANT GEORGE GRENVILLE. count all the “Gs” within 3 minutes.
Black Belts – many of whom are drawn from the ranks of middle management or are high future . The Black Belt is the full-time person dedicated to tackling critical change opportunities and driving them to achieve results. including strong problem solving. manages. he or she must be adept at project management – the art and science of getting things done on time through effort of others.17.3 (HOW TEAMS ARE FORMED FOR IMPLEMENTING SIX SIGMA PROJECTS) Once management has chosen to go for Six Sigma initiative.141 - . The Black Belt must possess many skills. building their confidence. (Reportedly. the ability to collect experience. and “baby-sits” colleagues and becomes almost expert in tools for assessing problems and fixing or designing processes and products. team members. team leaders. these titles were coined by a Motorola improvement expert with a passion for karate. Normally. and facilitators. and Master Black Belt.) Other roles will have more familiar titles. Without a strong and tireless Black Belt. APPENDIX . coaches. and good administrative sense. BLACK BELT: This is probably the most critical role in Six Sigma. observing and participating in training. The Black Belt leads. inspires. Moreover. Some people’s roles may have martial arts names: Black Belt. He or she is primarily responsible for getting the team started. the Black Belt works alongside a team assigned to a specific Six Sigma project. managing team dynamics. Green Belt. and keeping the project moving to successful results. Six Sigma teams are usually not effective. delegates. the real work is up to a collection of business leaders.
The MBB may also get involved in special Six Sigma – related projects like. the MBB plays more of an organizational change agent role. the Master Black Belt (MBB.managers – typically serve a term of eighteen months of two years. the Master Black Belt provides advice and even hands – on help for such tasks as collecting data. often with a background in engineering or science or an advanced degree in business. helping promote use of Six Sigma methods and solutions. the MBB is a real expert in Six Sigma analytical tools. In some companies. investigating customer requirements or developing measures for key processes. As a coach. . complete their work properly. Black Belts are more in number and are fundamental to most Six Sigma efforts. MBB’s play a critical role in sustaining the momentum of change. designing experiments. and improved customer experience. doing statistical analysis. MASTER BLACK BELT: In most organizations. Often too. completing four to eight projects and/or handling special assignments. cost -savings. Most companies view Black Belt – hood as a springboard to other opportunities. the key tasks for each step of the Six Sigma improvement process. and pass the “tollgates” i.142 - . pronounced em-bee-bee) serves as a coach and mentor or consultant to Black Belts working on a variety of projects.e. including promotions and bonuses. the MBB will have several Black Belts under his or her care. In most instances. the MBB’s job is to ensure that the Black Belt and his/her team stay on track. and communicating with key managers. The MBB may also become a part-time Six Sigma trainer for Black Belts and other groups. Like most coaches.
Negotiate conflicts. overlaps. Conduct the tollgate reviews. CHAMPION AND/OR SPONSOR: These titles are common to Six Sigma efforts. The role of the Green Belt is to bring the new concepts and tools of Six Sigma right to the day-today activities of the business. Provide or cajole needed resources. In many cases it is seen that the Champion/Sponsor role tends to get the least training and preparation.143 - . In other words. Some companies.GREEN BELT: A Green Belt is someone trained in the basic Six Sigma skills. and linkages with other Six Sigma projects. Six Sigma results are not delegated down many layers in the business but remain in the hands of senior and key middle management. is ultimately accountable. . money and help from others. most notably GE. for the team. Usually. Having a champion or a Sponsor is very important. But the Green Belt still has a “real” job and serves as either team member or a part-time Six Sigma team leader. • • • • Keep other members of the leadership team informed on the progress of projects. a fairly senior person. The responsibilities of the Champion include: • Ensuring that projects stay aligned with overall business goals and provide direction when they don’t. a Champion is an executive or a key manager who initiates and supports (sponsors) a Black Belt project. such as time. have required large segments of their populations to be trained as Green Belts. so it could become one of the weakest links in the Six Sigma efforts. This role sends a critical message: The Champion.
b) Then extend the training to various other management levels & functions creating six sigma specialists in the form of "Green Belts". high-demand job with short-term goals. and "Black Belts". He or she will also be primarily responsible for executing implementation plans. This individual directs the entire Six Sigma effort. with the leader moving on to another executive or management position after a few years. the Implementation Leader serves as the conscience of the top-management team.IMPLEMENTATION LEADER: This role may go by other names like Vice President of Six Sigma or Chief Sigma Officer. tools. long-term visions. helping its members keep Six Sigma practices and priorities high on their agenda. the Implementation Leader is often a temporary position. Achieving this cultural shift is best accomplished by: a) Start with six sigma training for all the senior managers. c) Then include several people at operational levels for “Yellow Belt” training.144 - . and habits across the organization and to help the effort reap financial and customer benefits. . The Implementation Leader is either a seasoned professional in organizational improvement or quality or a respected inside executive with significant company experience and strong leadership and administrative abilities. He or she is often at the corporate vice president level. and significant accountability. reporting directly to the CEO. Like the Black Belt. Note: In order to realize the gains of six sigma. The ultimate goal of the Implementation Leader is to drive Six Sigma thinking. or another top executive. it is essential to recognize that a significant cultural shift must occur in the organization. In many ways. president. This is a high-stress.
/ Sr.) .O.145 - . Analysis of Data.) Green Belt Training Six Sigma Green Belts (Form a CrossFunctional Team) Responsibilities (Work Part-Time on BB Projects) Data Collection.Champion / Green Belt Training Process-Owner OR Champion OR Sponsor MD/ CEO / VP / Director (Implementation Leader) Responsibilities Short-listing BB Projects Providing Resources Timely Decisions About Changes in processes Responsibilities Providing Process Knowledge (Critical Thinking) to the Six Sigma Team Arranging Resources and Timely Decisions from Top Management Motivate the Six Sigma Team Six Sigma Black Belt (Team Leader) Responsibilities Works Full Time on BB Projects (3 to 5 Projects / Year) Use SS Tools and Statistical Techniques (Statistical Thinking) Leads the GBs & YBs Middle& Junior Management (About 80 Nos.Black Belt Training .SIX SIGMA ROLES (EXAMPLE 1000 EMPLOYEES IN ORGANIZATION) Employee-Level Top Management (About 20 Nos.) . Management (About 20 Nos.D.Champion Training Master Black Belt (Outside Consultant OR an Insider) H.) . Brainstorming Responsible for Mentoring Support to Black Belt Middle Management (About 20 Nos.
Brainstorming Responsibilities Operator / Worker Six Sigma White Belts Participate in Brainstorming .146 - .Supervisor / Team-Leader Six Sigma Yellow Belts Responsibilities Data Collection.
Training on Programming Standards . 1. Preventive Action 20. Use of Information Security Management 21.18. and Hidden (H). 15. Corrective Action 19.147 - . Attrition of Employees 17. 22. Training as a Corrective Action 18. Inaccuracy in Data Sent for Rework 6. Rework 3. 24. Internal Failure (IF). Penalty due to late Delivery 16. Process Capability Study 7. Refund to Customer 12. Wrong Despatch 9. APPENDIX – 4: COQ EXERCISE EXERCISE – COQ: Listed below are different types of cost of quality. 23. Legal Liability due to incorrect functioning of product 14. Quality Auditing 4. Appraisal (A). Prevention (P). Testing a Beta Version 11. Review of Customer Requirements 8. Planning 2. Identify these as cost of External Failure (EF). Failure on Installation 10. Also write some examples from your own business. Correction of Invoice 5. Product Recall 13.
APPENDIX –5: PROCESS MAPPING .148 - .19.CASE STUDIES .
.149 - .
150 - ..
20. APPENDIX – 6: DMAIC CASE STUDY / EXAMPLES .151 - .
1 DMAIC CASE STUDY 01: INCREASING ACCURACY OF “DAILY NEWS” NEWSPAPER 1. b) End of day. Benchmarking with other newspapers showed that actions taken by them to improve accuracy included: a) Penalize reporters for mistakes b) Incentives for reporters who kept the mistakes low. and other information published by them. to less than 10 errors per day. The first question for the management was to identify the pain areas.20. Preliminary Study: Very often six sigma projects fail because different people have different understanding about what the project will achieve. the credibility of the newspaper is reduced. . facts. The goal was set to reduce errors by 50% i. A major pain area was identified as “ Accuracy of names.152 - . The team adopted the DMAIC methodology for process improvement.e. Introduction: The management of “Daily News” a regional newspaper initiated an effort to improve quality of their newspaper. The General Manager formed a Six Sigma team to “ Find Ways to Improve the Story-Writing Process such that it enables the Reporters and others to Reduce Mistakes”. 2. the typical error rate reaching the composing room was 20 errors per day. figures. the effectiveness of these actions was limited as sometimes these became causes for unhappiness and discontent. Preliminary study of the baseline data showed that at present: a) The Copy Desk was catching and fixing 30 to 40 errors per day.” If a name is mis-spelled or the facts are wrong or calculation is incorrect. In this case the Champion established “Reduction in Errors” as the main goal. However.
3. An error was defined as: a) Any deviation from truth. or widely accepted standards of English usage. accuracy. Errors were divided into 9 categories: • • • • • • • • • Wrong Spelling Wrong Number Wrong Name Bad Grammar Libel Word Missing Duplicated Word Wrong Fact Others. A copy editor had to call the library nearly 10 to 25 times a day to check the facts.The financial impact of an error was established as: • • • • • $ 60 if caught at the copy desk $ 80 if caught in the composing room $ 750 if a page has to be redone $ 4000 if the press had to be stopped and re-started $ (Unknown) if the error was actually published. b) A departure from accepted procedures that causes delay or requires to rework a story or graphic. photographs and graphics.153 - . b) Make the copy desk editors free for doing value added work rather than wasting time on NVAs like spell-checking. . Operational Definitions: An operational definition for an “error” was created so that data could be collected and everyone would be talking the same language. cross-checking and fact-checking. The Champion and BB identified some secondary objectives for the project: a) Elimination of Rework & Duplication of work in the processes used to create stories.
Baseline Data: A Pareto Analysis showed the occurrence of errors as under: • • • • • • Misspelling & Poor Grammar – 36 % Wrong Name – 22 % Wrong Fact – 21 % Word Missing – 4 % Duplicate Word – 6 % Others – 6 %. Data was collected for a period 45 days. the variables that would impact the number of errors in a day were as identified as: Size of the paper (number of pages) % of articles spell-checked by the reporters No. of times the front cover story had to be changed in a month. of times each copy editor had to call the library in a day No. Overview of the process was mapped as under: Editor Assigns Story Reporter Editor Copy Editor Researches Reviews Checks & Writes Story Story & Story | Layout | | | | ------------------| ---------------| Story Revised Story Revised (as needed) (as needed) Story Sent to Production (Composing Room) 5. Based on brainstorming within the team.154 - .4. The following observations were recorded: SIZE OF PAPER: Size of Paper Average No. of Errors reaching composing room 24 pages 5 30 pages 8 36 pages 14 50 pages 19 .
OF ERRORS WHEN FRONT COVER STORY WAS CHANGED VS WHEN STORY WAS NOT CHANGED: Change of Front Cover Story No.1: Reporters were not using the spell-checker. Analysis of data: Root Cause . of Errors reaching composing room Not used 44 40% 28 70% 18 100% 8 NO.% ARTICLES SPELL CHECKED: Use of Spell Check No. of Times Calls Made Average No. of Errors reaching composing room 10 times 15 times 20 times 25 times 20 13 7 3 AVERAGE NO. OF TIMES COPY EDITOR CALLED LIBRARY: Approx. . of Errors reaching composing room Days When Story Not Changed 16 Days When Story Was Changed 29 6. No. Their attitude was: • • I don’t have time to spell check The copy editors will catch the error anyway.155 - .
This was to ensure that 90% of the facts are verified before they reach the copy desk.156 - . Also the data showed that: a) As the size of the paper increases (more pages). numbers. as new stories had to be created under very tight schedules. facts. .Root Cause –2: Reporters were not routinely checking their facts & sources which was a job requirement. 7. b) Changing the front cover story increased the error rate. They agreed to accept this goal for improvement. Improvements Made: a) Pilot: i) ii) It was clarified to reporters that checking accuracy of his article was the responsibility of the reporter himself. Reporters were made aware that tendency for mistakes was more when: * Cover story was changed at short notice * The size of the newspaper was large (i. vi) The goal of less than 10 errors reaching the copy desk was discussed with the reporters after taking these steps. (This was not being done earlier). Reporters were required to verify the correctness of every important element of the story or graphic. the number of errors increases. iii) Three job-aids were created: * Guidelines for Spell-Check * Ten Rules of Grammar * A “Trust-Table” which showed the sources that could be trusted for producing accurate names. number of pages was more).e. iv) v) Reporters were trained on how to do mathematical calculations accurately.
the result was that total errors did not change. . It may therefore be necessary to have regular project reviews and process audits). Otherwise the benefit of the project will not be realized. It is the leadership’s responsibility to ensure that people give up the old ways and adopt the new ways. The control plan focused on measuring and monitoring the following: a) Total Errors b) Errors by category c) % of articles spell-checked by the reporters d) No. c) After one month: The total errors were found to have dropped by 40%. It was also clarified that concerned managers were personally responsible for this implementation. 8. The situation was reviewed and it was found that: i) ii) The new procedures were not being used. Many reporters felt that it was cumbersome to follow the new procedures and ”is not going to help much”. of times each copy editor had to call the library in a day e) No. Control Plan: A control plan was now put in place to ensure that the gains were sustained. d) After the second month: The total errors dropped by 65% (against the goal of 50%).157 - .b) Results of the Pilot: Data for one month was analyzed. The General Manager called for another meeting of the management team and the reporters and emphasized that the new procedures had to be used. (Often it is seen that there is a gap between deciding on improvements and actually implementing them effectively). Surprisingly. (Finding that new procedures are not being used is quite a common occurrence. of times the front cover story had to be changed in a month.
5./ b. business-need and goal statement for this case. According to you what would be the CTQs and the CTPs in this case? 3. What management lessons can we learn from this case? . Write the problem statement. 2. (This was not a direct saving but the persons involved could use the saved time for more value-added work). 9.per year. c. 65% reduction in errors led to savings in time at the copy desk of more than $226000/. Fewer missed deadlines. Results: a. List the deliverables achieved as per the DMAIC phases in this case study. Improved morale and job-satisfaction at the copy desk (copy editors were freed to make better use of their talents). CASE QUESTIONS: 1. 4. d.158 - . Considerable drop in re-work. Identify the tools that would have been used in each phase to arrive at the given data.These charts were displayed on a regular basis for everyone to know how the process was performing.
employee costs. The Define Phase: The project scope was limited to the process of providing new power connections o users up to a 100kw load in approved and electrified areas where the power supply network exists. The project targeted benefits included cost savings associated with the amount paid in penalties.80. Bandyopadhyay A power distribution company in India. In each case that the company was unable to meet the standard.159 - . local conveyance expenditures.2 DMAIC CASE STUDY 02 Process Redesign to Reduce Cycle Time By D. commercial.’ . A Six Sigma DMAIC project was initiated to reduce cycle time.000/-. The defect was defined as any new power connection that required more than 30 days to complete.19. industrial and agricultural users. and document handling as well as an increase in customer satisfaction. it was required to pay a penalty for the delayed connection. was not meeting the country's Electricity Regulatory Commission performance standard regulations for metering and billing. These standards require the company to provide new power connections within 30 days from the date an application is received. This translated into an annual cost of Rs. catering to the needs of domestic.20.
160 - .1: Monthly Status of Pending Connections After Stipulated 30-Day Time Limit The Analyze Phase: A cross-functional team was formed to prepare a process map with each activity identified by one of three categories – real value-added. non-value-added – based on the following criteria: Real value-added included essential activities that transform inputs into outputs that are necessary to meet customer requirements and have perceived value to the customer. Business value-added included activities that are installed by management and deemed necessary to support.The Measure Phase: Data collected for a five-month period showed an increasing trend in the number of defects with an average of 330 per month (Table -1). Table . control. and monitor internal business functions but have little or no perceived value to the customer. business value-added. . Non-value-added included nonessential and non-processing activities that do not contribute to customer satisfaction or improved business operations.
added activities comprised only 25 percent of the overall processing time. Real value.82 3.04 25% 2.The results of the analysis showed that only 19 percent of the process activities are real value-added. Data as per Table – 2 showed that at some stage of the process.31 8.0% To assess where significant breakdowns in the process were occurring.17 34% 41% 100. Sub-Cycle Time Sub-Cycle Time-I (SCT-I) Sub-Cycle Time-II (SCT-II) Sub-Cycle Time-III (SCT-III) Sub-Cycle Time-IV (SCT-IV) Sub-Cycle Time-V (SCT-V) Definition Time between date of receipt of application and date of demand note preparation Time between date of demand note preparation and date of printing of demand note Time between date of printing of demand note and date of payment by customer Time between date of payment by customer and date of progress card generation Time between date of progress card generation and date of energizing . it was determined that the process required a maximum time of 8.3). Table 2: Analysis of Various Activity Categories Activity Category Real Value-Adding Business ValueAdding Non-Value-Adding Total Number of Activities in Progress 14 29 31 74 Estimated Ratio of Standard Estimated Man-Hours/Case Man-Hours/Case 2. significant breakdowns were occurring. From a time study carried out to estimate the standard man-hours required for performing each process activity.161 - . the total cycle time was divided into five sub-categories based on various milestone dates (Table .2 hours.
business value-added activities were minimized. Key improvements included the following: • The application form and agreement form were combined.4: Contribution of Each Sub-Cycle Time A brainstorming session identified the significant factors affecting these times. Detection at the application receiving stage rather than at a later stage helped reduce rework and improve customer satisfaction. The Improve Phase: To redesign the process all non-value-added activities were eliminated. Table . From that information.Table 3: Definitions of Each Sub-Cycle Time The Pareto analysis of the sub-cycle times revealed that two cycles were accounting for 88 percent of the total time (Table . solutions were identified.162 - . reducing the number of required documents and eliminating duplicate information.4). • . and real value-added activities were streamlined. Databases related to meter reading status and bill payment status of existing customers were made accessible online to detect potential status issues before accepting the application.
5 0.7 3.0% Table 5: Cost-Benefit Analysis: Table 5: Cost-Benefit Analysis: Account Headings Amount (US $ ) Remarks Savings/per annum from 298. The Estimated Standard Man-Hours / Case reduced from 8. The number of activities in the process was reduced from 74 to 36.0% 100. A time study was carried out to estimate the standard man-hours required for performing each activity in the new process (Table .4).2. Table 4: Analysis of Various Activity Categories Activity Category Real Value-Adding Business ValueAdding Non-Value-Adding Total Number of Activities in Progress 9 27 0 36 Estimated Standard Man-Hours/Case 1.17 to 5. The redesigned process was piloted in one district during a four-week period.000 Penalty Money Expenditure on local conveyance 44.2 Ratio of Estimated ManHours/Case 33 % 67 % 0. Results were positive.000 Based on past performance Based on data provided by the claimants .• Systematic calculations of charges and implementation of an e-mail messaging system for communication of potential issues made the process flow faster and be less prone to errors.0 5.163 - .
164 - .000 amortized over four years. Annualized cost 29.000 * Approximated Total Annual Expenditure 40. .000* * Based on cost of vans totaling US $ 44.000 Total Net Annual Savings 302. the company implemented a database to track each application and monitor the key sub-cycles. A concise reporting format also was developed to track the weekly progress of energizing within each zone and the overall performance for each district.Total Annual Savings Expenditure per annum for: Purchase of two mobile supply vans (one for each five districts) E-mail & Van-Running & Maintenance costs 342.000 11.000 The Control Phase: To monitor and control ongoing process performance.
some observers have characterized Six Sigma as a "defect-reduction" methodology. analyze.it's not just for manufacturers anymore (Edited version of case-study by Ali Kiran and Celal Kaplan) During the past 10 years. To understand what really works.3 DMAIC (Service): Six Sigma -. reduce operational costs. to reduce manufacturing defects. measure. the company then determines an acceptable range. and improve customer service. To show how this method may be applied in a non-manufacturing business. improve and control the key processes that affect customer satisfaction. businesses have deployed a wealth of information technologies to increase revenue. Banks offer an ever-widening range of financial products through constantly expanding branch networks. The Six Sigma methodology demands that a company begin by identifying the defects that influence customer satisfaction the most. Developed in the 1980s by Motorola Inc. For a bank to make sure it has the right people with the right skills available at the right time is a growing challenge. These successes have encouraged many retail and service businesses to apply Six Sigma to non-manufacturing operations. these enterprises are turning to process-improvement methodologies like Six Sigma.165 - . . Yet many CIOs find it difficult to tell whether these investments are producing satisfactory ROI. For each factor. lost productivity and customer dissatisfaction. we will use an example from retail banking. and why. retail banks have implemented numerous new technologies and marketing programs to improve service delivery and boost earnings. the Six Sigma methodology focuses on eliminating the defects that drive customer dissatisfaction and customer defections.to define. banks now find themselves cross-training branch employees for a much wider variety of roles. (Indeed.20. To successfully market new products like investments and insurance.) Users of the Six Sigma methodology have demonstrated that the surest way to improve performance is to systematically identify the causes of waste. Managers in any industry can improve any business operation by applying Six Sigma's DMAIC process -. During the past 10 years. and then adjust internal processes to eliminate them.
improved branch-customer satisfaction is usually a key objective. The specific CTQ is chosen and a problem statement and goal statement are formulated.every time. The first step here is for the bank to define the core processes within the organization that involve customer interactions and are directly related to customer satisfaction. MEASURE: The second step is for managers to establish quantitative measures that can yield statistically valid data. If they don't get it. they won't hesitate to defect to a nearby competitor. To benchmark performance. the bank may set a key metric of servicing 85% of its retail customers within five minutes. Accordingly a plan to collect the data can be made whereby the bank can then assign observers to measure wait times at various branches under differing conditions. Retail banks generally find that wait times typically have the strongest impact on customer satisfaction. . Today's customers demand a positive service experience -.Optimizing staff levels is only one example of the challenges that retail banks face as they struggle to improve branch-customer satisfaction while simultaneously reducing costs.accurate. For retail banks.166 - . This would give us a measure of the current status / baseline status of the CTP(s). Specific examples might include: • • • • Teller window transactions New account openings Fixed Deposit rollovers Address changes. DEFINE: The first step of the Six Sigma DMAIC initiative is to clearly define the boundaries and objectives of a specific project. This paves the way for preparing a Project Charter. friendly and fast -. The boundaries of the problem are defined. Not all factors have an equal impact on customer satisfaction.
however. IMPROVE: As soon as our bank identifies the factors that slow transactions. for instance. The bank can. In a separate experiment.167 - . The bank must examine each of these activities to determine which have the greatest impact on overall transaction time. it should initiate actions to minimize the impact of these factors.ANALYZE: Once the bank has defined the parameters. The analysis must examine all the activities that are part of each bank/customer interaction. To eliminate the need for tellers to leave the window for manager approvals. may include the customer’s preparations before coming to the window. Careful measurement of wait times in these two experiments will indicate which new practice has the more beneficial effect on wait times. adding more than five minutes to actual wait times. Proper regression analysis. documented baseline performance and gathered data. The control step demands that the bank continually monitor the metrics it has put into place in respect of the CTPs and the CTQs. Activities involved in check cashing. and the teller’s having to seek manager approval for the transaction. It is important to apply accepted statistical tools to identify the root causes of problems in this business process. may reveal that managerial approvals – which usually require that tellers leave their windows – have a much greater impact. CONTROL: Control is the final step in the DMAIC cycle. design experiments to evaluate the impact of proposed improvements to every activity in the check-cashing process. Lack of customer preparedness might appear to be the greater contributor to longer transaction times. the bank may measure the impact of letting tellers approve more transactions on their own. the bank may set up an experiment where supervisors come to the teller window. This process requires periodic measurements using the same data-gathering protocols established at the beginning of the project during the Measure phase. for example. it must then analyze results to identify opportunities for improvement. Assume that the data gathered shows that customers were unprepared 50% of the time and that manager approvals were required in only 15% of all check-cashing transactions. . the customer’s request for cash back.
a successful Six Sigma project establishes a precedent for evaluating new programs and technology investments. By identifying and controlling the key factors that did the most to increase transaction times.168 - .80 minutes. In one case. significantly improving customer satisfaction while simultaneously reducing staffing costs. just like in our example. validate and monitor business process improvements. CIOs face constant demands from senior management to document "results" for IT expenditures. . and to meet other objectives as well. Applying Six Sigma's DMAIC process has enabled banks to implement corrective actions based on empirical evidence rather than on anecdotal evidence and gut feeling. In addition.Perhaps the greatest strength of the Six Sigma method is that it produces objective. The Six Sigma DMAIC process can be applied throughout the retail banking organization. More important. a bank implemented a Six Sigma project to reduce customer wait times. both to their own IT operations and to the mission-critical business processes they support. But Six Sigma principles are not limited to reducing customer wait times.45 minutes to 1. measurable results that can be monitored continuously. the bank was able to lower its average transaction time from 2. to design. Banks have also implemented Six Sigma programs to reduce theft and fraud. Six Sigma offers a proven methodology for establishing such results. wherever managers require measurable results. the quantitative results that Six Sigma provides will allow CIOs to propose and test continued improvements.
21.EXERCISE .169 - . APPENDIX –7: FMEA .
an ELCB Electrician appointed to check electrical connections around the pool once a week Security agency has been appointed for security of the society. Your group represents the Managing Committee that has to take over from the builder.e. The baseline status is as under: What the Builder has provided Large overhead tanks for 24 hours water availability Anti-skid tiles around the pool • • Anti-shock device i.CASE-STUDY: SWIMMING POOL Situation: You have bought a flat in a complex where builder has provided a club house and swimming pool. Also make a control plan to sustain the situation of reduced risks. • • • What the Builder has not provided • • • • No Floats No Sign Boards No Lifeguard Agency for water cleaning not yet appointed Meter for testing water not purchased No separate security arrangement for entrance to swimming pool No id cards for residents Q1: Using FMEA methodology identify the risks that need to be reduced and actions required to reduce these risks. .170 - . Q2.
*S A T I N G *NS *C: CRITICAL *S: SIGNIFICANT *NS: NOT SIGNIFICANT .171 - . R P N Anticipated Abuse By Customer that might increase RPN Overall (Revised) RPN (After adding weightage for likely abuse by customer) *C E V.DESIGN / PROCESS FMEA WORKSHEET PART – 1 Process SubSteps/ Sub-Parts Potential Failure Mode (What can go wrong / fail) Potential Effects Of the failure R S Potential Causes Of Failure R A T I N G R A T I N G O C C. Arrangement For Detection D E T.
/ Increase Chance of Detection) Responsibility for Completing Action (Names) Action Completion Planned Dates Actual Dates S O D New RPN (After Improvement) RPN .DESIGN / PROCESS FMEA WORKSHEET PART – 2 Process Substeps / Sub-parts Action Planned to Improve RPN (Reduce Sev / Reduce Chance of Occ.172 - .
if Out of Control Condition Occurs .DESIGN / PROCESS FMEA WORKSHEET PART – 3: CONTROL PLAN Process Substeps / Sub-parts Process / Customer Requirements Control Imposed to Ensure Sustained Performance Equipment / Mechanism used for Control Audited (Checked) By Action Plan.173 - .
174 - . (APPENDIX – 8) TERMINOLOGIES IN SIX SIGMA .22.
CLASSIFYING PROCESSES: All processes in an organization are important. Re-named as “TQM” since year 2000. Delivery. But. including suppliers. . Company Wide Quality Control (CWQC): A system of continuing interaction among all elements. and then identifying ways to improve the process. These are called KEY (CORE) processes. Core Process: The process in a manufacturing or service organization that produces the goods or services for external customers on which the organization depends for its survival.g: Design & Development. Production / Operations. Can be used as a tool for: • • Prevention Appraisal.175 - . Checklist: A tool used to ensure that all important steps or actions in an operation have been taken. responsible for achieving the continually improving quality of products (services) that satisfies customer demand. • They add value directly for external customers e. The KEY Processes are: The operational processes that result in the production of outputs required by external customers.Benchmarking: A method for comparing a process using standard or best practices as a basis. Marketing (Sales). some processes are more important than others due to their impact on the organization’s results. Customer Care.
Legal. Purchase. thus generating revenue for the company. thrive”. thus creating "an increasing affection" for its products and services. External: An end-user who pays for the project or service delivered by a company. The buyer provides long-term contracts and uses fewer suppliers. Supplier Support. • They add value directly for internal customers. The supplier implements quality assurance processes to limit or eliminate incoming inspection by the buyer. Customer. e. In service industries. and common goals regarding customer satisfaction. The goal of world-class companies is to " continually delight" this customer. process. Customer-Supplier Partnership: A long-term relationship between a buyer and supplier characterized by teamwork. the total time elapsed from when a customer expresses a need to when that need is satisfied.176 - .g: Human Resource. Internal: The recipient (person. or department) of another person's or department's output (product. There may be several external customers. data. material or information) within an organization. The supplier also helps the buyer reduce costs and improve product and process designs.The other processes called SUPPORTING Processes are those that help the core processes to “exist. service. mutual confidence. based on several commitments. operate. all of whom must be considered by the supplier. Customer. Cycle (Lead-Time): The total time elapsed from when raw material enters the production process until the finished product is ready for shipment to the customer. . The supplier is considered an extension of the buyer's organization.
Defect : A measurable characteristic of the process or its output that is not within the acceptable customer limits, i.e. not conforming to specifications. Employee Involvement: A practice within an organization whereby employees regularly participate in making decisions on how their work areas operate. This includes making of suggestions for improvements, planning, goal setting and monitoring performance. Empowerment: A condition in which employees have the authority to make decisions and take action in their work areas without prior approval. For example, an operator can stop a production process if he or she detects a problem, or a customer service representative can send out a replacement if a customer calls with a complaint. Flexible Manning (Shojinka): A way of managing person-power on the line such that when demand decreases, workers can be re-deployed to areas where needed, or when demand increases, they can be deployed to areas requiring additional support. Requires development of multi-skills. Just-in-Time (JIT): A system of managing production processes that results in line- balancing, one-piece flow, and low material inventory at the plant site with minimum incoming inspection. This system was developed at Toyota under the leadership of Taiichi Ohno and is part of the “The Toyota Production System”. KAIZEN: A Japanese term meaning "change for the better". Applied to business organizations, it implies small, continual improvement involving everyone and without spending much money. KAIZEN Strategy: A business strategy that begins with the customers' needs concerning Quality, Cost, and Delivery. Is founded on a people-oriented culture and is supported by an involved leadership.
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KAIZEN Principles: The three principles upon which KAIZEN thinking and organizational culture are based. a) Process and Results: The old approach to management is to focus on results (CTQs). It ignores the way in which things are done and so misses any opportunity for improvement in the process. In contrast, the six sigma approach is to focus on CTPs. b) Systemic Thinking: Looking at all activities as processes and putting together the processes in the right sequence, such that they result in consistent output i.e. right first time, and right every time. c) Non-Blaming Approach to problem-solving: The traditional tendency is to find whom to blame for a problem / mistake. In Kaizen, the focus is not on blaming people. Instead, people work jointly to find a solution to the problem such that same mistake must not occur again. In this approach, the focus is to understand how things work and how they can be improved, instead of judging whether things already done are good or bad, right or wrong. Non-Statistical Quality Assurance: A lot of activity in Quality Assurance is non-statistical, particularly that portion which has to do with human resources. Such elements are Communications, Documentation, Human Relations, Involvement of people, Morale, Standardization, and Self-discipline. Statistics are only one set of tools in Quality Assurance and are not a substitute for the above non-statistical elements. Quality Function Deployment: A system whereby customer requirements, known as "true quality characteristics" are translated into designing characteristics, and then deployed into sub-systems like components, parts and production processes to develop new products precisely as per the customer needs. Standards: A set of policies, rules, directives and procedures established by management and workers for all major operations which serve as guidelines enabling all employees to perform their work in the best, easiest, healthiest and safest way currently known.
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Total Productive Maintenance (TPM): Aims at maximizing equipment effectiveness throughout the entire life of the equipment. It involves such basic elements as a routine maintenance system, education in housekeeping, problem-solving skills, and activities to achieve zero breakdowns. Value Stream Process Mapping: Creating a visual picture of the 'Current State' of how material and information flows from suppliers through manufacturing and to the customer. Total lead-time, process cycle times and value-added times are measured. The Future State is created based on goals desired based on market conditions and strategic planning for the business. Variability Control and Recurrence Prevention: This is often called "Ask why five times" because it seeks through curious questioning to arrive at the root cause of a problem so that problem can be eliminated once and for all. Warusa-Kagen: It is a proactive approach to look at issues that are not yet problems, but are still not quite right. They are often the starting point of improvement activities because if left unattended they may develop into serious problems. In Kaizen approach, it is usually the operators who first notice Warusa-Kagen. Water-Spider (Mizusumashi): A person who manages all the logistical work of bringing components, raw materials, etc. in small quantities to work stations to minimize work-in- process inventories. This allows machines to be placed closer together, and spares the operator from having to interrupt his/her cycle time, thus minimizing transportation-related waste. Water spiders usually are experienced workers. They know where needed parts or raw materials are stored, and serve several workstations.
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(APPENDIX – 9) FORD’S EIGHT DISCIPLINE PROBLEM SOLVING METHODOLOGY .180 - .23.
These actions could involve the performance of FMEA’s.4 Steps in the 8 – Discipline Problem Solving Process: D–0 D–1 D–2 D–3 D–4 : : : : : The planning stage Establishing the team Describing the Problem Developing an Interim Containment Action (ICA) Defining Root Cause & Identifying the Escape Point (5 Why’s) . This will allow you to work on more “futuristic projects” such as process / product improvement and other “forward thinking” initiatives. Systemic Actions to correct (improve) the system as a whole. etc. When problems are effectively resolved. 3. Key Concept: Resolve problems permanently so that they never recur. Why follow an 8 – D Approach? Problems need to be resolved “for good”.181 - . Three Key Points which an 8 – D Problem Solving Effort Must address: 1. Problems usually re – surface with “Band Aid” solutions. company can channel resources more strategic efforts such as innovation and other “forward thinking” initiatives. 2. 3. Implementation of Permanent Corrective Action 3.1. Determination of Root Cause 2. Training. Changing Standard Operating Procedures.
Members . Leader 3. Questions to Ask: 1. What has changed or what is the symptom? 2. Champion (who owns the problem). Team Roles: 1. Can the symptom be clearly described and quantified? 3. Is any Emergency Response Action (ERA) required to safeguard the customer? D – 1: ESTABLISH THE TEAM: The team must have the required knowledge about the process or system to be able to understand the problem and have the potential to solve it in allocated time period. 2.182 - . D – 0 : THE PLANNING STAGE An 8 – D is needed if: Something has changed (past performance exceeds present performance) and there is a deviation from an expected performance level.D–5 D–6 D–7 D – Final : : : : Permanent Corrective Action (PCA) for Root Cause and Escape Point Implementing the PCA & Control Plan Preventing Recurrence (addressing the “System”) Recognizing the Efforts of the Team .
Recorder 6. D – 3 must also validate the effectiveness off the containment action. verify and implement an Interim Containment Action in order to isolate the effects of the problem form affecting the customer (internal or external). .183 - . Time Manager / Facilitator.e. To buy time until a permanent corrective action is implemented.4. The ICA will remain in effect until a Permanent Corrective Action has been implemented. Writer 5. Rationale for D – 3: a. “What’s wrong with What”) Example 1: Fuse blows when Heater is plugged in Object = Defect = Example 2: Paint blisters with time Object = Defect = Note: No analysis is discussed at this point in time even if the root cause is obvious. D – 3: DEVELOP AN INTERIM CONTAINMENT ACTION (ICA): Purpose of D – 3: To define. D – 2: DESCRIPTION OF THE PROBLEM (BOUNDARIES): What is the Object and What is the Defect (i.
b. D – 4: DEFINE AND VERIFY ROOT CAUSE(S) & ESCAPE POINT(S): Purpose of D – 4: a. Verify that no other problems are created as a result of the PCA selected. c. Potential options for Permanent Corrective Action / s may be listed on a separate sheet. A time line for the PCA is defined. . To isolate and verify root cause(s). d. To isolate and verify the location in the process where the effect of the root cause could have been detected but was not .b. D – 5: CHOOSE AND VERIFY PERMANENT CORRECTIVE ACTION (PCA) FOR ROOT CAUSE AND ESCAPE POINT: Purpose of D – 5 is to : a. Select the best PCA to address the escape point. Protect the customer from the effect of the problem. Select best PCA to remove root cause. Contain the problem from a cost. b. e. c.184 - . The “best “ option may then be chosen by the team. This should not involve any “rush through” actions or “band aids” that may eventually cause the problem to resurface. The PCA must be a well thought out action where all benefits and risks are taken into account. Verify that both actions will be successful when implemented. quality and reputation perspective.
d. D – 7: PREVENT RECURRENCE: Purpose of D – 7 is to: a. if any.185 - . Modify the existing systems (policies. Remove the ICA (interim corrective action). Monitor long term results by establishing a Control Plan. Plan and implement the PCA selected. . b. Purpose of D – 6 is to: a. b. Make recommendations for systemic improvements. make sure it works. Validate the PCA – that is.D – 6: IMPLEMENT AND VALIDATE PERMANENT CORRECTIVE ACTION / S. practices and procedures) in place as so to prevent a recurrence of such a problem or similar problems. c.
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