DMAIC, DMEDI and Process Management

Quick Reference
For Project and Process Review

Purpose of this Guide
The primary intent of this quick reference guide is to aid process owners, sponsors and stakeholders guide and mentor 6 Sigma project teams as they progress through the various phases of a DMAIC or DMEDI project. Please use this guide during all leadership review meetings (‘gateways’) as a base level of talking points to ensure the project teams are indeed adhering to the proper methodology. Please pay special attention to the critical points listed for each phase, as these are the key points and milestones each project team should at a minimum be achieving prior to moving to subsequent phases. Additionally, the Process Management section of this guide offers Process Owners a framework from which to organize, schedule and facilitate periodic process reviews. These reviews will be critical to the assurance that improved and/or created processes are being maintained according to the process control system and that benefits continue to accrue.

PURPOSE OF GUIDE

and in dealing with sensitive issues. • To gather data from the organization for improved coordination. management and planning.Purpose of Leadership Reviews • To monitor team progress • To reinforce priorities • To align and realign activities with business strategies • To provide guidance and direction • To check for consistent understanding • To share successful practices • To assist the team in identifying and providing resources needed to be successful. • To show visible support for improvement efforts • To provide ongoing coaching and instruction • To recognize and reward efforts PURPOSE OF REVIEWS LOGISTICS/SAMPLE AGENDA .

Presentation by the project team 3. Questions and comments from project team 5. Reviewers share the following: • Strengths in logic and data • Questions for clarification • Suggestions to consider 4. Brief introduction by Sponsor 2.LOGISTICS/SAMPLE AGENDA Participants • Team leader and team members • Project Sponsor • Master Black Belt • Process Owner(s) • Other managers and stakeholders as appropriate Frequency Minimally. Guidelines • Formal or informal • Sponsor should schedule review • Minimize special preparation by the team • Team sends storyboard or presentation to reviewers 2-3 days before the review • Reviewers should not judge the team Sample Agenda 1. Brief closing by Sponsor . reviews should be conducted at the end of each phase.

Relevant Tools & Skills • Facilitation • Project Plan/Gantt Chart • Training ASSURING TEAM SUCCESS QUESTIONS . • Team members clearly understand roles and responsibilities. Critical Points • Team has been assigned a leader and a Master Black Belt • Black Belt and team members trained in and following the DMAIC and/or DMEDI methodology • Team has scheduled and held frequent meetings • Team members regularly attend all meetings • Team members have the time necessary to complete assignments between meetings • Reviews are regularly conducted • Effective team collaboration • Team has a plan for completing the project • Team is documenting its work • Team has adequate resources • Team has engaged the process owner early in the project • Team has engaged the financial representative early in the project.Team Success Purpose To ensure the team is properly outfitted for success in using the 6 Sigma DMAIC and/or DMEDI methodology. • Black Belt understands the fundamental concepts of the 6 Sigma financial guidelines.

QUESTIONS Team Success Questions • Who are the assigned team leader and Master Black Belt for the team? • Have all team members been trained? Was it the proper content? • How much time does the Master Black Belt spend with your team? • How often does the team meet? • What is the attendance percentage at meetings? • How much time do members spend outside of meetings working on the project? • Are there barriers for collaboration within the team? If so. what plans are there to address them? • When did the project start? When is the planned completion date? Is the project on schedule? • How is the team tracking and documenting its accomplishments? • What other resources does the team need to assure success? • Who is the financial representative for the project and have they been engaged? • Who is the Process Owner and have they been engaged? .

DMAIC Reviews

DMAIC REVIEWS

DMAIC OVERVIEW

DMAIC OVERVIEW

DMAIC Overview
DMAIC is the acronym used to refer to the 6 Sigma improvement process. The five-phase process of Define, Measure, Analyze, Improve and Control is used to improve existing processes, products and services to 6 Sigma quality. Data and statistics are used to reveal the root cause of the problem, thus optimizing the efforts to concept and test solutions.

Define Phase Purpose
• To define the customers and their requirements (VOB->CCRs) • To define Process Partners and their business requirements (VOB->CBRs) • To develop and refine a team charter • To map the business process to be improved

Critical Points
• Customers/process partners identified/segmented as appropriate. Data to verify customers’/process partners’ needs and requirements collected and plotted • Written team charter includes rationale for project, preliminary problem statement, scope, goals, milestones, and roles and responsibilities • Completed and validated high-level “as is” process and/or system map which identifies suppliers, inputs, five to seven process blocks of activities, outputs and customers

Relevant Tools/Concepts
• Brainstorming • CCR/CBR Tree • Customer Surveys • Prioritization Matrix • Process Map • Project Plan other VOC/VOB chart tools • Communication Plan • Project Risk Assessment

DEFINE

QUESTIONS

QUESTIONS FOR DEFINE PHASE Questions for Define Phase Customer • Who is the customer? • Who are the process partners? • How were the relevant customer/process partner segments determined? • Is there data to understand the customer/process partner requirements? Charter • What are the compelling business reasons for completing this project? • What key business output measure will this project impact? How? • What is the problem being addressed? • What are the boundaries or scope of this project? • Who are the stakeholders that will be affected by this project? How will data be used to understand and address concerns? • Has this or a similar problem been solved before? • Can we learn from their effort? • What is the goal for the project? Is it reachable? • How will we know if the team is successful? • Are milestones established with dates? Process/System Map • How was the map developed? • How was the map validated? • Is the process actually followed? .

x and related process measures • Determine process/system capability (baseline performance) • Set the improvement goal for the project Critical Points • Agreement upon the key measures • Identification and definition of critical defects in the process/system • Sound data collection plan and measurement systems analysis • Process variation displayed using appropriate charts and graphs • Baseline measurement of process capability and process sigma level Relevant Tools/Concepts • Check sheets • Control Chart • Gage R&R • Histogram • Measurement Systems Analysis (MSA) • Operational Definition • Opportunity • Process/system Map • Run Chart • Sampling Techniques • Yield MEASURE QUESTIONS .Measure Phase Purpose • Identify project Y=f(x) and performance standards • Collect data on Y.

unit and opportunity that you will use to calculate process sigma levels? • What is your data collection plan? • How much data did you collect? How did you sample? • What stratifying factors will you use in your data analysis? • What have you done to ensure the reliability and validity of the measurement process? • What display tools were used to assess the performance of your process? • What are the current process measures and goal for this project? • Have you found any “quick win” improvements? • How were they implemented? What barriers arose? How did you overcome? • Is the scope of the project manageable? • Has the financial baseline from which benefits will be measured been established? • Has the Process Owner been identified? • Is there enough improvement opportunity from the baseline to continue the project? • Is the project on schedule? • Have revised benefits been entered into eTracker? .QUESTIONS FOR MEASURE PHASE Questions for Measure Phase • Have any charter revisions been made? How has this changed the scope and objectives of the project? • What key output. process and input measures are critical to understanding the performance of this process/system? • What are the definitions of defect.

verify and quantify root causes and the key factors ➣ Designed experiments to identify key Factors • A refined problem statement resulting from the analysis. Critical Points • A prioritized list of all possible sources of variation for the process • A focused list of critical sources of variation that strongly impact the project Y • A sound. This may include: ➣ A detailed and analyzed “as-is” process map. ANALYZE QUESTIONS .Analyze Phase Purpose • Identify key sources of variation by analyzing data and process/system. logical path that shows steps and/or tools used to narrow the list. • Quantify the financial opportunity for the project. ➣ Use and display of data to identify. • Dollar estimates of the financial opportunity for the project • Process ownership must be established prior to moving to the Improve phase.

ANALYZE (CONTINUED) Relevant Tools/Concepts • Cause & Effect Diagram (Fishbone) • Check sheet • Cost/Benefit Analysis • Design of Experiments • Histogram • Hypothesis Tests (t-test. Chi Square) • Non-value-Added Analysis • Pareto • Process Map • Regression • Scatter Diagram • Stratification . ANOVA.

retention. • Did you collect additional data? What was measured? What did you learn from the analysis? • What is the opportunity represented by addressing the problem? What are the quantifiable costs of our current process performance? What are the anticipated impacts on customer satisfaction.Questions for Analyze Phase • Have any charter revisions been made? How has this changed the scope and objectives of the project? • Which root cause analysis tool did you use to help you identify potential root causes? • What are the root causes of the problems? How did you draw those conclusions? • Show me your detailed process map. and loyalty? • How could this increase our capacity? • How could this improve our ability to improve our process controls? • Have you found any “quick win” improvements? How were they implemented? What barriers arose? How did you overcome? • Have revised benefits been entered into eTracker? • Has the financial representative been notified of significant changes in facts or assumptions? Is the revised financial opportunity significantly different from the Project Sponsor’s initial estimate? • Is the project on schedule? • Who is the Process Owner and have they been engaged? QUESTIONS FOR ANALYZE PHASE .

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Improve Phase Purpose • To generate and test possible solutions • To select the best solution(s) to address the most critical sources of variation for the process • To identify the required resources and plan for successful implementation Critical Points • Potential solutions and alternatives to the problem tested • Best solution selected based on data collected during testing • “Should be” process/system map • Cost/benefit analysis of proposed solution • Impact assessment of project improvements developed • Full implementation plan including project and change management plans • Contingency Plan developed • Process Owner is actively involved with solution development IMPROVE QUESTIONS .

IMPROVE (CONTINUED) Relevant Tools/Concepts • Creativity • Brainstorming • Cost/Benefit Analysis • FMEA • Prioritization Matrix • To-Be Process Map • Project Plan/Gantt Chart • Potential solutions .

Questions for Improve Phase • How did you generate solution alternatives? What criteria did you use to evaluate potential solutions? • How does the evaluation criteria tie into business strategy and project objectives? • Show me your “should be” process map. What is your communication plan? What things have been considered to manage the cultural aspects of the change? • Has the financial representative been notified of any significant changes in the projected financial opportunity? Have those changes in benefits been entered into the appropriate systems? • Is the project on schedule? • Was the Process Owner engaged in developing the solutions? QUESTIONS FOR IMPROVE PHASE . What assumptions were made? Did you validate the cost/benefit analysis with a financial subject matter expert? • Have hand-off’s to areas outside the project scope been identified? Addressed? • Explain the compelling need for this change. • How does your preferred solution address the root cause of the problem? • Walk me through your cost/benefit analysis.

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Control Phase Purpose • To implement the process improvement in all areas • To implement a plan for sustaining the improvement Critical Checkpoints • Solution piloted on a small scale with data collected and analyzed • Process and financial control plans that assure the improvement gains are sustained long-term • New process documentation and other evidence to assure the solution becomes part of daily work • Response plans developed and deployed • Full implementation of the process improvement • Broader systems and structures changes to institutionalize the improvement • Confirmation of defect reduction and improved process capability • Results translated to other processes with similar improvement requirements • Financial impact of process improvement have been quantified by the Team Leader and validated by the financial representative • Process Owner has accepted full responsibility for controlling the process and reporting the financial impact CONTROL QUESTIONS .

CONTROL (CONTINUED) Relevant Tools/Concepts • Control Chart • Histogram • Pareto • Piloting • Procedures • Process Sigma (Z st) Calculation • Response Plan • Training • Process control system .

learn about the process of making improvements? • What is the next problem that should be addressed in this process? QUESTIONS FOR CONTROL PHASE . as a team.Questions for Control Phase • How was the solution tested on a small scale? What did you learn about full-scale implementation from the pilot? • What is the implementation plan? What training is required? • How will the implementation plan be monitored to ensure its success? Who is accountable? • What controls are in place to assure that the problem does not reoccur? Is a response plan in place for when the process measures indicate “out of control”? • Who is the process owner? How will responsibility for continued monitoring and improvement be transferred from the team to the owner? • What barriers to change remain that will prevent institutionalization of the improvement? Are actions contained in your plan to address these? • What did the team learn from the project? Are there others that can benefit from these lessons? How can they be effectively shared? • What did you.

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DMEDI Reviews DMEDI REVIEWS DMEDI OVERVIEW .

Explore. The five-phase process of Define. Develop and Implement is used to create new processes. Measure.DMEDI OVERVIEW DMEDI Overview DMEDI is the acronym used to refer to the 6 Sigma creation process. . products and services to 6 Sigma quality.

goals. Relevant Tools/Concepts • In and out of scope tool • eTracker • MGPP • BRM and PRA • Project management plan • Communication plan DEFINE QUESTIONS .Define Phase Purpose • Understand business risk and project risk • To develop and refine a team charter • To identify a new product or service • To develop a project management plan Critical Points • Written team charter includes rationale for project. and timeline. communications. deliverables. scope. • Business risk and project risk examined and documented by team and sponsor • Project management plan includes change management. reviews. milestones. and roles and responsibilities • Documented project plan includes controls. and risk assessment.

QUESTIONS FOR DEFINE Questions for Define Phase Customer • Who are the customers and process partners? • Is there data to understand the requirements? Charter • What are the compelling business reasons for completing this project? • What key business output measure will this project impact? How? • What are the boundaries or scope of this project? • Who are the stakeholders that will be affected by this project? How will data be used to understand and address concerns? • How will you communicate key project issues to these stakeholders? • Has this or something similar been designed before? Can we learn from their effort? • What is the goal for the project? Is it reachable? • How will we know if the team is successful? • Are milestones and timelines established? • Is this part of a multi-generational project/process plan? What are the generations? • Have risk management tools been used to help balance risk and control? .

measurable CCRs/CBRs with targets and specs • Create project scorecards to be used throughout the project to compare design results to CCRs/CBRs Relevant Tools/Concepts • Affinity diagram • Customer research methods • Customer/process partner surveys/ interviews • Scorecards • Kano analysis • Performance benchmarking • QFD • Structure tree MEASURE QUESTIONS .Measure Phase Purpose • Identify customers and or process partners • Identify and segment customers and/or process partners • Gather and analyze customer and/or process partner needs (VOC & VOB) • Translate the VOC/VOB into Critical Customer Requirements (CCRs & CBRs) with goals and targets Critical Points • Agreement upon the key customer segments • Prioritization of customer/process partner segments • Selection of customer/process partner research methods • Build VOC/VOB data collection plan • Organize customer/process partner information • Prioritize customer/process partner needs • Develop specific.

QUESTIONS FOR MEASURE PHASE Questions for Measure Phase • How were the relevant customer segments determined? • What is your data collection plan? • How much data did you collect? How did you sample? • What stratifying factors will you use in your data analysis? • What have you done to ensure the reliability and validity of the measurement process? • What are the results of the QFD analysis? • Has a scorecard with CCRs and sigma capability targets been developed? • Have you reviewed the MGPP? • Has the BRM and PRA checkpoint process been used to assess risk? • Have any charter revisions been made? How has this changed the scope and objectives of the project? .

etc • Functional/Process requirements have been transferred to design requirements • Completed capability assessment of high level design • A best-fit design has been selected and reviewed for customer and process partner feedback. facilities. • Design review conducted • Process ownership must be established prior to moving to Develop. systems. • Critical design resources have been identified.Explore Phase Purpose • Generate concepts • Synthesize and select design elements • High level process design complete Critical Points • Product/Service functions have been defined • CCRs/CBRs have been deployed/allocated to functions • Alternative design concepts have been developed • Best performance products/processes have been benchmarked • Top concepts have been evaluated against appropriate criteria • Design elements have been developed along with requirements for processes. jobs. EXPLORE QUESTIONS .

EXPLORE (CONTINUED) Relevant Tools/Concepts • Benchmarking • Design scorecards • FMEA • Functional analysis • Layout diagrams • Process maps • Process models • Creativity tools • Design for manufacturability and assembly • Prototyping • Pugh matrix • Function tree analysis • Non-parametric statistics .

Questions for Explore Phase • Did you collect additional data on the concept? What was measured? What did you learn from the analysis? • How did you generate these concepts? • Have all design elements been considered and appropriately developed. human. material and equipment? Should any others be considered? • What criteria were used to select the proposed concept? • Who was used for the benchmark best process or product? • Who were the customers that gave feedback on the concept? Why were they chosen? • What tool was used to perform the risk assessment? What did it show? • How were the concepts/designs developed? • What is the capability of the concept/design? • Have any charter or MGPP revisions been made? How has this changed the scope and objectives of the project? • Has the BRM and PRA checkpoint process been used to assess the risks of alternative concepts? • What is the opportunity represented by the completion of this project? • Who is the Process Owner and have they been engaged? QUESTIONS FOR EXPLORE PHASE . facility. including process. information.

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Develop Phase Purpose • To generate and evaluate possible designs that are optimized to meet the CCRs/CBRs • To develop a product or process control strategy • To develop a product/process pilot plan developed • To assess project risks Critical Points • Detailed products/processes for best design developed • Best design selected based on data collected during design capability analysis • Detailed process/system map • Cost/benefit analysis of proposed solution • Impact assessment of project design developed • Control strategy developed DEVELOP QUESTIONS .

DEVELOP (CONTINUE) Relevant Tools/Concepts • Control plan • Design scorecards • FMEA/EMEA • IT logical/physical design • Job Design • Pilot/Test plan • Process management charts • Process/system Map • Design for manufacturability and assembly • Simulation software • Robust parameter design • Robust tolerance design • Specifications • Standards/ procedures • Design of experiment .

• What assumptions were made? Did you validate the cost/benefit analysis with a financial subject matter expert? • How was the design analyzed? • Have hand-off’s to areas outside the project scope been identified? Addressed? • What things have been considered to manage the cultural aspects of the implementation? • Has the performance and capability assessment been done? • Have hazards been identified and impacts assessed? • How was the simulation conducted? What was the process performance? • Have any other project risks been identified? • How was the technology/concept optimized? • How robust is the product/service? • How do you plan to pilot the product/service? • Has the financial representative been notified of any significant changes in financial opportunity? Have those changes been documented? • Have BRM and PRA processes been used to assess and mitigate risk? • Who is the Process Owner and have they been engaged? QUESTIONS FOR DEVELOP PHASE . • How does your preferred design address the CCRs/CBRs? • Walk me through your cost/benefit analysis.Questions for Develop Phase • How did you generate design alternatives? What criteria did you use to evaluate potential designs? • How does the evaluation criteria tie into business strategy and project objectives? • Show me your detailed process/system map.

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Implement Phase Purpose • To verify the design in pilot • To validate the product/process with full-scale results • To implement the design and transition to process management • To collect relevant project documents and lessons learned • To celebrate successful project completion Critical Checkpoints • Design verification through pilot testing • New product/process documentation to assure the solution becomes part of daily work • Response plans developed and deployed • Full implementation of the process design • Process qualification through full-scale processes • Performance evaluation based on full-scale results • Training completed • Process control plans in place for turnover to process owner • Process Owner in full agreement to take responsibility of new product/process/service designed in project • MGPP reviewed • Project closure IMPLEMENT QUESTIONS .

IMPLEMENT (CONTINUE) Relevant Tools/Concepts • Capability analysis • Control charts • Control plans • Design scorecards • DMAIC • MGPP • Process management charts • Project Planning • Standards and procedures .

Questions for Implement Phase • What did you learn about full-scale implementation from the pilot? How did the product/service perform during the pilot? • What is the implementation plan? What training is required? • How will the implementation plan be monitored to ensure its success? Who is accountable? Has the project documentation been completed? • What controls are in place to assure that the process/product meets CCRs/CBRs? Is a response plan in place for when the process measures indicate “out of control”? • Who is the process owner? How will responsibility for continued monitoring and improvement be transferred from the team to the owner? • What barriers to change remain? Are actions contained in your plan to address these? • What did the team learn from the project? Are there others that can benefit from these lessons? Have they been documented? How can they be effectively shared? • What plans are there for further commercialization? • Has the multi-generational product/process plan been updated? QUESTIONS FOR IMPLEMENT .

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DMAIC/DMEDI REVIEW PROJECT NOTE FORM .Project: _______________________________ Review Meeting Date: ____________________ Phase in DMAIC/DMEDI completed:_________ • Brief status of the project: • Key messages from the reviewers: • Agreed-upon next steps: • Suggestions for improving the next review: • Issues/concerns.

DMAIC/DMEDI REVIEW PROJECT NOTE FORM Date: _________________________________ • Business:_____________________________ • Process: _____________________________ • CCR: ________________________________ • Current Sigma: ________________________ • Target Sigma: _________________________ • Customer Benefit: ______________________ ____________________________________ • Estimated Financial Impact: ______________ • Financial Impact To Date: ________________ • Start Date:____________________________ • Estimated Completion Date: ______________ • Master Black Belt: ______________________ • Black Belt: ____________________________ Notes: (Issues/Challenges). .

Process Management Reviews PROCESS MANAGEMENT REVIEWS .

. • To help prevent leakage of savings resulting from process improvements. Regularly scheduled process management reviews. to provide feedback on the process. especially when team members change jobs. • To provide the opportunity for voices external to the team. should be scheduled and facilitated by the Process Owner. after project completion and closure. including customers. Process Management Purpose • To verify the process is being implemented according to the process control system. These reviews are intended to ensure improved/created processes and systems are being maintained and used according to the process control system and that benefits continue to accrue.PROCESS MANAGEMENT REVIEWS OVERVIEW Process Management Overview Process Management is the means by which we ensure the improved/created outcomes of 6 Sigma projects continue year over year. • To ensure consistency.

etc. Relevant Tools/Concepts • Process review and turnover checklist • Process control system • eTracker PROCESS MANAGEMENT REVIEWS OVERVIEW . individuals who are responsible for collecting or reporting data. key stakeholders and possibly customers.) • Participants in the reviews should include: Process Owner (leads the review). individuals responsible to respond to metrics. list of action items and who is responsible for each item. schedule of future process review meetings. “managing by walking around”. and periodic (annual. validation in eTracker. schedule of future meetings to assess completion of action items.Critical Points • Process owners are accountable for completing process reviews and should critically evaluate the process and financial performance • There are several types of process reviews including: structured/formal review meetings. updated process control system including effectively dates and/or version tracking. inclusion in other meetings. • Outputs of the reviews may include: list of key issues raised. monthly.

when will it be updated and by whom? • Is the value created continuing to be measured and sustained? . and due dates? • Is there a schedule of future meetings to assess completion of action items? • Is there a schedule of future design review meetings. if needed? • Does the process control system need to be updated. which includes responsible parties. customers and users understand it? • Does the process purpose describe the process outcome in a measurable way and is the process outcome being measured? • How well are the customer’s requirements being met? • Is there a process map that shows the required activities. and if not. individual and cross-functional accountability.QUESTIONS FOR PROCESS REVIEW Questions for the Process Review • Has a process control system been developed. who is responsible? • Is the eTracker information correct. validated and approved by stakeholders and is it being adhered to? • Does the process description reflect a key process. and if so. job or group of work tasks using simple and general terms and do the owners. and the process roles and responsibilities of all involved? Is the process map accurate and being followed? • Is there a set of indicators that measure compliance of critical process activities to process specifications and provide upstream indication of the quality of the outcome of the process? Are the indicators being met? • Are there specification limits or targets that define acceptable levels of quality performance and are these being met? • Are checks being done at specified intervals and by the accountable individuals? • What are the key issues that were raised during the review? • Is there a list of action items.

BENCHMARKING: The practice of assessing the performance or processes of another company and identifying best practices with the goal of improving internal process performance. BENEFITS: Level 1 benefits have a direct and certain impact on the enterprise bottom line and there is a clear cause and effect relationship between the project and resulting gain that can be quantified and measured on the income statement.e.GLOSSARY 3 Ps: Performance through 6 Sigma. ideas. greater than 50% confidence level) or the baseline cost is not in our existing cost structure (i.e. cost avoidance. Level 2 benefits result from the productive redeployment of human (whole salaried or management employees only) and capital resources to functions or areas with a demonstrated need. etc into logical or similar groups. GLOSSARY . Level 3 benefits generally create potential opportunities for future savings and the impact to the bottom line is “more likely than not” (i.) BLACK BELT: A full-time resource trained in DMAIC and/or DMEDI whose role is to lead 6 Sigma projects. Often done after brainstorming sessions to create an ‘affinity’ chart/diagram. AFFINITIZE: A term coined by the 6 Sigma community that describes the process of the categorizing or organizing of similar concepts. Profitable Growth and People. issues.

CHECK SHEET: A simple form for tracking events using tally marks to indicate the frequency of an occurrence. or how well the process can perform when special cause variation is removed. Boundaryless behavior is a requirement for successful 6 Sigma deployment. timeline. It contains a statement of the problem. temperature. Common cause variation is a measure of the process’s potential. depending upon the precision of the measurement system. COMMON CAUSE VARIATION: (Also called random variation or noise) A steady but random distribution of change in a process measurement around the average value of the data caused by unknown factors. the scope of the project. CONTINUOUS DATA: Information measured on a continuum or scale that can be meaningfully subdivided into infinitely small increments. estimated financial benefits. CHARTER: A document that outlines the purpose and plan for a project. CONTAINMENT: Containment is a temporary intervention used to minimize a problem’s impact on the customer while the improvement team works to resolve the issue with a longterm solution. an improvement goal. . weight and currency. Examples of continuous measurements are time. and a list of team members and their roles.GLOSSARY BOUNDARYLESS: The ability to think and act beyond your own business unit needs for the benefit of the enterprise.

US). and season (winter. GLOSSARY . C).CONTROL CHART: A time-ordered plot of data points that includes a center-line (average value) and specific control limits. fall). Measure. DMAIC: Data-driven methodology for improving processes. Explore. Analyze. CCR (CRITICAL CUSTOMER REQUIREMENTS): A key measurable characteristic of a product or a process whose performance standards are dictated by the customer. processes and services. spring. summer. comprised of five phases: Define. DMEDI: Data-driven methodology for designing products. credit source (A. Improve and Control. Europe. Examples include location (Asia. CBR (Critical Business Requirement): A key measurable characteristic of a product or a process whose performance standards are dictated by process partners. B. DISCRETE DATA: Information expressed on a scale that has a finite number of values or categories. used to identify changes in process performance. CUSTOMER: End user who pays green dollars for Caterpillar products and services DASHBOARD: A display tool used to summarize key process measurements that directly affect customer satisfaction. Develop and Implement. It is comprised of five phases: Define. Measure.

Results of an FMEA are used to improve the solution to a problem and develop contingency plans in case of failures. ANOVA. GAGE R&R (GAGE REPEATABILITY AND REPRODUCIBILITY): A statistical tool used to measure the amount of variation in the measurement system arising from the measurement device and the people taking the measurement. ISHIKAWA DIAGRAM: (Also called a “fishbone”) A tool used to organize possible causes for a specific problem or effect by graphically displaying them in increasing detail. F-TEST.GLOSSARY FMEA (FAILURE MODE AND EFFECTS ANALYSIS): A disciplined approach used to identify possible failures of a product or service and determine the frequency and impact of the failure. HYPOTHESIS TESTS (t-TEST. ENTERPRISE FOCUS: The ability to make sound business decisions by optimizing cash flow for the global Caterpillar organization. . GREEN BELT: An individual trained in the DMAIC and/or DMEDI methodology whose part-time role is to work 6 Sigma projects. CHI SQUARE): A set of statistical analysis tools used to determine whether the observed differences between two or more samples are due to random chance (as stated in the null hypothesis) or true differences in the samples (as stated in the alternate hypothesis).

provides training for Black Belts and Green Belts. MOMENT OF TRUTH: Any instance in which the customer comes in contact with a product or service and can make a critical judgment on the business . helps the team obtain required resources. GLOSSARY .MASTER BLACK BELT (MBB): A full-time expert in the DMAIC and/or DMEDI and Process Management methodology. MEAN: The average value of a data set. MISTAKE PROOFING: A technique for eliminating errors that cause defects by: • Predicting when an error could occur and taking action to eliminate the possibility of occurrence. or • Predicting when a defect is about to occur by detecting that an error has occurred and taking the appropriate action. The MBB participates in project reviews. MEASUREMENT SYSTEM ANALYSIS: A mathematical method of determining what fraction of the total process variation observed is contained in the measurement (data collection) process.positive or negative. MINITAB: Caterpillar’s current statistical software application of choice. MEDIAN: The middle or central value of a data set whose values are arranged in increasing order. and ensures the rigor of the DMAIC and/or DMEDI and Process Management methodology is maintained. specifically trained to coach and mentor improvement teams and dedicated full time to 6 Sigma.

platforms. NOISE: Those items that can affect the output of the product/process. MULTI-GENERATIONAL PRODUCT/ PROCESS PLAN(MGPP): Generations of a product or process used to reach a long-term vision. and technologies needed for each stage. Outliers may result from an unstable process. It contains concepts..GLOSSARY MODE: The most frequently occurring value in a data set. measurement or activity written to ensure common understanding.e. steps the customer would not be willing to pay for). NONVALUE-ADDED STEPS: Steps in the production and delivery of a product or service that are considered nonessential to meeting the customer’s needs and requirements (i. which the team cannot control or chooses not to control. and links to the process’ ability to satisfy customer needs and requirements. or a data collection or data entry error. OPPORTUNITY: Any characteristic of a unit that is inspected. OPERATIONAL DEFINITION: A detailed description of a process. or tested and provides a chance of not meeting a customer requirement. measured. . a specific process improvement. OUTPUT MEASURE: An indicator of process performance captured at the end of a process. OUTLIER: A data point located beyond a specific range and that represents a statistically unexpected event.

PROCESS PARTNER: Internal customer who provides inputs or receives outputs of an internal process. whether or not it produces a tangible product. Depending upon the product or process. PERFORMANCE STANDARD: (Also called a specification or Spec limit) A boundary that defines acceptable values for the measurement of a product or process as determined by customer needs. can be described as a process. PILOT: A test of a proposed solution on a small scale in a real business environment to verify that the improvement goal has been met and to identify issues that must be addressed to ensure the successful full-scale implementation of the solution. PROCESS CAPABILITY: The ability of a process to produce a defect-free product or service. GLOSSARY . Every activity performed. PROCESS: A series of steps that transforms one or more inputs into an output (product or service) to meet a customer and/or process partner’s need.PARETO CHART: A graphing tool that prioritizes a list of variables or factors based on impact or frequency of occurrence. PROCESS MANAGEMENT: The means by which we ensure the improved/created outcomes of 6 Sigma projects continue year over year. It is used to separate the potential vital few causes of a particular problem from the trivial many. a performance standard may be one-sided (a single boundary) or two-sided (upper and lower boundaries).

QUALITY FUNCTION DEPLOYMENT (QFD): (Also called House of Quality) A structured methodology used to identify customers’ requirements and translate them into key process deliverables. but similar project. PROCESS REVIEW: Required review facilitated by the Process Owner after completion and closure of a 6 Sigma project to ensure that the benefits are being sustained. operator or data collector. REGRESSION ANALYSIS: A method of analysis that quantifies the relationship between a response (Y) variable and one or more predictors (Xs). even if abbreviated somewhat. and operations (in chronological order) that make up a process. events. The relationship is represented by a formula (the regression equation) that can be used to model process performance. REPLICATION: Replication of a process improvement occurs when the process improvement framework of a completed 6 Sigma project is used as a guide for a separate. The elements of the DMAIC methodology will need to be completed. .GLOSSARY PROCESS MAP: An illustration of the steps. There must be a reasonable degree of uncertainty as to whether the proposed solution will work without significant modification. RANDOM SAMPLE: Data collected in a manner such that each element of the population has an equal chance of being selected for measurement. Random sampling helps to avoid biases specific to the time and order of data collection.

The critical process elements usually have been designed to prevent or eliminate opportunities for defects. Patterns on the run chart can help identify the presence of special cause variation. The dots on the scatter plot represent data points. logical categories for analysis. or markets. SIGMA (σ): The statistical term for the standard deviation of a population. In 6 Sigma. RUN CHART: A graphing tool that shows data plotted in time order for a process.ROBUST PROCESS: A process that operates at 6 Sigma and is therefore resistant to defects. SEGMENTATION: The division of a group into smaller. ROOT CAUSE: The underlying condition or factor that produces one or more problems or defects. SCORECARD: An evaluation tool (usually in the form of a questionnaire) that is used by the customer to rate the business’ ability to satisfy their key requirements. SCATTER PLOT: (Also called a scatter diagram or a scattergram) A graphing tool that shows the relationship between two variables. Some commonly segmented entities are customers. SAMPLING: The practice of gathering a subset of the total data available from a process or a population. to draw conclusions about a population or process. Sigma is a measure of process performance based on customer requirements. data sets. GLOSSARY . this is known as statistical inference.

STANDARDIZATION: Standardization of a process improvement occurs when the improvement is implemented. SPECIAL CAUSE VARIATION: (Also nonrandom variation or controllable variation) Shifts in process output caused by a specific factor such as environmental conditions or process input parameters. broadly across business units or departments with little or no modification. subsequent to the completion of the original 6 Sigma project. special cause variation can be directly accounted for and potentially removed. .GLOSSARY SIPOC: A high-level process map that shows Suppliers. SPECIFICATION LIMIT: A threshold value obtained from the customer that defines whether the performance of a product or process is acceptable. Process steps. Inputs. STATISTICAL PROCESS CONTROL (SPC): The application of statistical methods (usually control charts) to analyze and control the variation of a process. STANDARD DEVIATION: The statistical “spread” of data in relation to the mean that indicates variation in a data set. Output and Customers for a process. STRATEGIC IMPROVEMENT PROJECT (SIP): Enterprise-wide project that supports our global mission and critical success factors. Projects are led by Black Belts using 6 Sigma methodology and rigor to drive results supported by facts and data.

VARIATION: (Also noise) The fluctuation in a process measurement quantified by standard deviation. VALUE-ADDED STEPS: The steps in the production and delivery of a product or service that are essential to meeting customers’ needs and requirements. Since they bring the product or service closer to completion. TREE DIAGRAM: A graphing tool used to subdivide a broad topic or goal into increasing levels of detailed items. GLOSSARY . tree diagrams are useful for organizing information into a logical hierarchy. product or service. UNIT: Any item that is produced or processed. VOICE OF THE BUSINESS (VOB): Information from process partners and business stakeholders obtained from a variety of sources about the expected and/or actual requirements related to the performance of a product or process. VITAL FEW: The small number of variables (Xs) most likely responsible for the majority of the variation in a process. value-added steps are considered steps the customer is willing to pay for.STRATIFYING FACTOR: (Also stratification or stratifier) A process characteristic used to divide data into subgroups to look for changes in process performance that might indicate the factor is a key driver of process performance.

ZST: A statistical measure of process performance that is the basis for determining process capability (process sigma). .GLOSSARY VOICE OF THE CUSTOMER (VOC): Information from customers obtained from a variety of sources about the expected and/or actual requirements related to the performance of a product or process.

210 8.6 5.5 3.520% 93.3790% 99.8650% 99.800 115.27 2.015 0.8 3.033 0.3 3.2 ABRIDGED SIGMA CONVERSION TABLE .LongTerm Yield 99.46 5.135 0.900 17.2 5.190 10.4 0.0 4.80% 75.3 2.840 2.2 3.8 4.8 2.9 107 139 178 227 287 359 446 548 668 808 968 1.420 Defects Per 100 0.350 1.6 25.800 22.4 3.8 9.08 0.9 3.9930% 99.1810% 98.580 1.48 6.5 34.07 1.068 0.9900% 99.9320% 99.7 1.000 212.621 0.9770% 99.048 0.5 15.0 2.9992% 99.120 2.466 0.3 0.004 0.9850% 99.660 6.9980% 99.5340% 99.700 35.0005 0.9 2.9040% 99.60% 78.9960% 99.08 9.1 4.600 54.800 96.05 0.39 1.8 6.000 242.00034 0.0 5.59 4.0 1.540% 94.800 80.000 158.6 2.460 4.130% 96.50% 86.000 Defects Per 10.4 5.9 4.7 4.000 135.4 21.2 0.20% 81.000 3.68 11.6540% 99.9670% 99.68 8.5 5.700 13.9995% 99.186 0.6 3.550 3.930% 98.9970% 99.860 2.920% 90.1 5.096 0.8 18.001 0.320% 91.80% Process Sigma 6.610% 98.9520% 99.99966% 99.6 4.4 4.730% 97.0 3.346 0.350 1.6 46.7 2.007 0.4 5 8 10 20 30 40 70 100 150 230 330 480 680 960 1.255 0.3 5.78 2.023 0.5 13.900 44.000 0.150 1.6 13.0008 0.5 18.003 0.8 5.001 0.5 4.819 1.220% 97.2 Defects Per 1.4 2.5 2.800 66.000.000 184.3 3.700 28.9990% 99.410% 95.3 4.9 5.3 4.2 24.10 0.1 81.8140% 99.1 3.7 3.5 2.2 4.7450% 99.7 5.50% 84.034 0.002 0.87 3.320% 88.6 62.

000 382.2 1.9 0.000 570.8 34.60% 61.2 Defects Per 1.000 750.4 30.20% 65.800 9.000 500.000 900.000 2.000 720.400 5.900 7.100 6.8 0.0 0.7 1.6 0.740 3.3 0.1 1.6 1.00 780.80% 58.820 4.700 6.ABRIDGED SIGMA CONVERSION TABLE LongTerm Yield 72.500 6.1 2.00% 54.3 1.9 1.200 4.000 540.2 42 46 50 54 57 61 65 69 72 75 78 81 84 86 88 .5 0.000 5.100 8.000 Defects Per 10.600 5.000 Defects Per 100 27.000 690.000 420.800 8.000 308.00% 50% 46% 43% 39% 35% 31% 28% 25% 22% 19% 16% 14% 12% 10% Process Sigma 2.4 1.4 0.000 274.000 650.000 610.000 880.080 3.000.200 7.8 1.000 840.60% 69.000 344.4 38.500 7.7 0.5 1.000 810.600 8.440 3.000 460.000 860.0 1.400 8.

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