Lean Six Sigma

An Introduction
by

Tracy Owens
 Exercise 1
You are in the basement and there are three light
switches on the wall numbered 1, 2, 3.
Each switch is connected to one light bulb
upstairs, where I am. They are labeled A, B, C.
You stay in the basement for five minutes and then
come upstairs and tell me exactly which switch
corresponds to each light bulb.
If you are wrong, you owe me $80,000.
If you are right, I’ll give you a Pez candy dispenser.

How do you decide?

 Agenda
• Six Sigma
• Six Sigma Project Leadership
• Lean
• Kaizen Events
• Prevention
• Innovation
Six Sigma
How do We Measure Performance?
Sigma…What is Sigma?
Sigma is a Greek letter that is a
statistical unit of measurement - it
measures the variability of the data
as represented by standard
deviation. Sigma is used to indicate
how much of the products or
services falls within the
customers’ requirements.

Reducing variation is the key to Six Sigma

Goal Posts
How Consistently Are You Meeting
Your Customer’s Needs?
2 sigma:
69.146% of products and/or services meet customer
requirements with 308,538 defects per million opportunities

4 sigma:
99.379% of products and/or services meet customer
requirements ...
but there are still 6,210 defects per million opportunities

6 sigma:
99.99966% – As close to flaw-free as a business can get,
with just 3.4 defects per million opportunities in your product
or service
 Common Process Maps

• High-Level Map Sales Service Repair Billing

• Flowchart Department
1
step
1
step
2

Department step step Sub- Step Step

process
2 3 4 9 10 11

Department step Step

Choice
3 5 8

Department step step

4 6 7

• SIPOC
(Suppliers, Inputs, Processes, Outputs, Customers)
 SIPOC
Suppliers A useful tool for:
• Scoping your project
Inputs • Listing process
Process variables
• Identifying team
Outputs members
Customers • Building other Six
Sigma project tools
 Order Entry Process SIPOC
Suppliers Inputs Process Steps Outputs Customers
Customer’s Purchase order sent Legible text and usable Order entry staff
purchasing agent via fax, e-mail, or EDI Order is sent format (customer service)

Customer’s Product codes, Confirm order Order data ready for Backup service reps in
purchasing agent quantity and prices entry into system case entry is delayed
details
NO
Our Account Current catalog or Info Pricing revisions; codes Marketing Dept needs
Manager promotion / special accurate? for special / promotion promotion data
YES
Our Supply Chain Table of production Check product Product availability Order entry staff
function schedules by category dates (customer service)
availability

Our production Estimated production Estimated ship date for Order entry staff and
Qty
operations or availability available? this order end customer
YES
NO
Order entry staff Reserve Note template Reserve Note End customer
Prepare
and required data document sent
Reserve Note

Order entry staff Shipment confirmation Shipment notification End customer

template and data
Confirm sent
shipment date
Our Accounts Initial Invoice template Initial Invoice sent End customer
Prepare
Receivable team and required data
Initial Invoice
 Closing Process Example
P
Reporting
Process

Start: Finish:

Pre Close Prelim Soft Hard External Consol Review & Consolidated
Activities Close Close Close P&Ls P&Ls Sign Off P&L To HQ
(1) (2) (3) (4) (5) (6) (7) (8)

S I P O C
Supplier(s): Input(s): Output(s): Customer(s):
• Accountants • Sub-system feeds • Edit/Error Reports • CFO and Senior Mgt.
• Acct. Systems Unit • System J/Es • Responsibility Reports • Accounting
• Cost Center Managers • Excel Uploads: Manual • Detailed Trial Balances • Treasury
• Management J/Es • Preliminary P&Ls • Budget
• External Companies • Database(s • Finalized P&Ls • Corporate HQ
• HQ • Consolidated P&L • Management
• Cost Center Managers
 A New SIPOC
Suppliers
Inputs
Triggers
Process Steps
Objectives
Outputs
Customers

The Trigger answers: The Objective answers:

WHY do we start WHY is this action
taking this action? important?

Note: This is NOT just a license to resist!

 Revised Approach
SUPPLIERS
INPUTS TRIGGER
INPUTS PROCESS
PROCESS OBJECTIVE
OUTPUTS CUSTOMER
OUTPUTS
Sales
Salesand
database
customer
and Sales
Bi-Annual
and customer
Review Research
ResearchRegion
Region Current performance Current performance
Accuracy Audit Team
stats
CRM Frequent stats
enough?? 2-3
2-3weeks
weeks eval eval
Raw data and data NoRawtrigger,
data and
routinely
data Prepare
Preparefor forVisit
Visit Detailed
Prepare listsite
of audit
visit Detailed list of audit
and previous reports
from other Regions fromscheduled
other Regions 3-5
3-5days
days objectives
issues objectives
Leadership team and FaceToFace- how Travel
Travelto to Site
Site On-site
Irony -for theimpact
visit isof
a On-site for impact of
Calendar planning Calendar planning
Audit team we've always done it 11day
day theburden
audit the audit
Leadership team and Leadership
Official kickoff
teamforand Kickoff
Kickoff Meeting
Meeting SetIt's
forbeen
objectives
2 years; and Set for objectives and
Region Office
Audit team Region
Audit team
team 11full
fullday
day Limited Value
cooperation cooperation
Individual leadership Individual
Need to verify
leadership
local HQ
HQInterviews
Interviews Don't
Verified
they know list oftheir Verified list of
team performance
team 11week
week improvement
performance?! opps improvement opps
Individual field Need Individual
to calibrate
fieldfield Field
FieldInterviews
Interviews Verified
Best behavior
detailsduring
with Verified details with
leaders processes
leaders 22weeks
weeks fieldaudit
staff field staff
Executive summary / Executive
Presentation
summaryof / Close
ConductMeeting
Close Highlights
Present findingsshared Highlights shared
notes findings
notes half
Meeting
day (any
with newHQfindings?)
team with HQ team
Report is due within Compile
CompileResults
Results General
Prepare&the Specific
most General & Specific
Full interview results Full interview results
one month 3-4
3-4days
days Regional
completeResults report Regional Results
Format of previous Report
FormatsoofRegion
previouscan Write
WriteReport
Report Report observations Report
Region observations
Office and
Read every page!
reports take
reports
action 2-3
2-3weeks
weeks and advice and
Salesadvice
VP
 The Focus of Six Sigma

Y = f(x1+X2+ x3)
• Output (Y) • Inputs (X’s)
• Effect • Cause
• Symptom • Problem
• Monitor • Control

Six Sigma focuses on the causes

Pareto Chart
Categorized issues ranked in order
from the most impact to the least
The bigger the bar, the bigger the
problem
Yes, the biggest problems demand
your attention
But there are successes to be
found in the lower bars as well.
 Exercise 2
Count the number of times you see the letter f in the
paragraph below -- you have 30 seconds:

The necessity of training farm hands for first-class

farms in the fatherly handling of farm livestock is
foremost in the minds of farm owners. Since the
forefathers of the farm owners trained the farm hands
for first-class farms in the fatherly handling of farm
livestock, the farm owners feel they should carry on
with the family tradition of training farm hands of first-
class farms in the fatherly handling of farm livestock
because they believe it is the basis of good
fundamental farm management.
Six Sigma Projects
Translating Processes
Potential
Root
Causes
Business Identified
Statistical
Problem Problem

Business Root
Statistical
Solution Causes Solution
Verified
 Process Analysis Paths
Articulate the Problem
Statement

Map the Process and Identify and Study

Analyze for Value the Variables

Develop and Test

Solutions

Select and Implement

the Best Solutions
 Two Paths
Process Analysis Data Analysis
Map the Process and Identify the variables
conduct Value Add that impact the output
analysis of the process
Generate a Fishbone Validate root causes in
chart and ask 5 Whys order to reduce
variation and defects
 Improvement Methodology
Elements of the Methodology Expectations
Focuses on “real problems” directly
related to the customer and the
• Define bottom-line
COMMUNICATIONS

• Measure Realized project results in 4-6 months

Utilizes multiple tools and techniques

• Analyze including statistics

Sustains improvement over the long-term

• Improve
Disseminates improvement throughout
• Control the organization

Is an instigator of continuous change

 6s Involvement
How can 6s help?
• Define - Gather facts regarding the exact question to
be answered
• Measure - Establish our baseline performance and
collect meaningful data relevant to the problem
• Analyze - All about finding the real root cause(s) and
the key to solving our problem
• Improve - Evaluate possible solutions based on their
impact on performance
• Control - Quantify the change in performance and
make sure the improvement is sustained
 The Methodology
Define Measure Analyze Define
Improve Control

• Gather data • Data • Generate • Monitor the

• Identify the stratification & solutions results
problem • Measure analysis
performance • Evaluate & • Document
• Scope the • Determine root select procedures
project • Determine cause solutions
baseline • Institutionalize
• Set goals performance • Collect • Implement changes
(measurable) additional data solutions
(as needed) to • Transition to
validate root
• Establish team process
cause owners
• Map the
process
Steps To Achieve & Sustain Change
 6s Involvement
How can 6s help?
• Define - “I know what the problem is!”
• Measure
• Analyze
• Improve - “Fix it like this, and move on!”
• Control
How do you know that was really the whole problem?
How do you know the full magnitude of the problem?
How do you know what was really causing the problem?
How do you know that the improvement will continue?
How do you know if you even fixed it at all??
 Key 6s Terms
Champion/ Key project stakeholder
Sponsor Reviews projects / removes obstacles
Full time Process Improvement
Master Black Belt
Works with project teams & champions to ensure
(MBB)
project execution
Full time Process Improvement
Black Belt (BB)
Executes projects & coaches GBs
Part-time process improvement project manager
Green Belt (GB)
Typically executes process specific projects
Critical Customer Critical process measures as identified by our
Requirement customers
Formal sponsor reviews held with the project team,
Tollgates sponsor, and MBB to determine the project status
and “pass” through to the next stage
 A Team Charter is a fundamental and critical
component to a Six Sigma Team.

Team Charter
B u sin ess C ase O p p o rtu n ity S ta tem en t
 W h y shou ld w e do th is?  W h at ‘p ain’ are w e
Purpose exp eriencin g? Business
 W h at is w ro ng ?
Impact

G oa l S ta tem en t P ro ject S co p e

Success  W h at are ou r im prov em ent  W h at autho rity do w e hav e?

o bjectiv es an d targ ets?  W h at p ro cesses are w e Boundaries
Criteria
add ressing ?
 W h at is n ot w ithin scope?
P ro ject P la n T ea m S election
 H o w are w e g oin g to get  W h o are th e team m em b ers?
Activities Who &
this do n e?  W h at resp onsibilities w ill
What
 W h en are w e go ing to th ey h ave?
co m p lete the w o rk ?
What is the Best Way to Make Sure a
Project Fails??
Lean
 Exercise 3
Team 1 – write your name on 1 and pass

Team 2 – write your name on 3 and pass

Team 3 – write your name on all 6 and pass

 What is Lean ?
A set of tools , which takes human, material and customer
requirements into account to deliver on time to the customers
requirement at the lowest cost
Decision making based on facts, decision making carried out at the
desk level often employing visual management as an integral part
of the management system
A structured methodology for continuous improvement which is
hinged on 5 basic principles

A business philosophy and strategy, developed by recognised

leaders in world class quality

A methodology which employs basic problem solving techniques

The objective is to align the entire performance of the

Value Stream with the customer
Value is Defined by Customers
• What is the customer willing to pay for?
• Value Added (VA)
• Who are your customers ?
• What’s their definition of value ?
• Typically <1% of our effort adds value!

• Everything else is non-value added!

(whether it’s needed or not !)
• Non-Value Added (NVA)
• Waste (‘Muda’)
• Typically >99% of everything we do is
‘waste’!

Our opportunities are massive, as most of what we do doesn’t

add value!
 Lean Techniques
Focus on 7 wastes (muda: non-value-adding work)
Intelligent automation and just-in-time production
5S: Sort, Set, Shine, Standardize, Sustain

• Define Value in the eyes of the Customer

• Map the Value Stream
• Align the Value Stream to Flow
• Pull goods and services through the Value Stream
• Strive for Perfection at every step
 5S - Five Japanese Words
Translated for use in the western world
1. Seiri – (Sort, in English)
2. Seiton – (Set, Set in Order)
3. Seiso – (Shine)
4. Seiketsu – (Standardize)
5. Shitsuke – (Sustain)
 5S: A simple Test
Which numbers are missing between 1-30?

261 22 3
15 4
22 5
29 6
28 7
14
9 10 11 12 13 14
17 11 9 7 13 19 27
15 16 17 18 19 20 21
30 20 6 24 3 1 12
22 24 25 26 27 28
5
29 25
30 10 21 18 4 16
 Unlocking the Hidden Factory
VALUE STREAM
WASTE THE
TO THE
CUSTOMER
CUSTOMER
PAYS FOR

Processes which provide Waste scattered

product value in the throughout the value
customer’s eyes stream

Features or • Excess inventory • Excess travel

characteristics the • Scrap and Rework distances
customer will pay for • Wait time • Test and
• Excess handling inspection
 Why Blend Lean and Six Sigma ?
While Lean and Six Sigma Share a basic quality improvement toolset
•Lean is well equipped to address WASTE and optimize the Value Stream
in ways which Six Sigma is not
•Six Sigma is better placed to deal with complex quality issues and reduce
process variation; it employs a very capable toolset to achieve this
Lean Six Sigma

+ QUALITY &
SPEED &
EFFICIENCY EFFECTIVENESS

Lean and Six Sigma Complement Each other

Exceptionally Well
 Lean and Six Sigma Together
Some problems will be more
Lean difficult to solve, so you will
Many start a Six Sigma DMAIC
Define
improvements Project
can be made
using Lean every
day Control Measure

Improve Analyze
Lean techniques are
useful when making Then you start again
improvements in a Six with Lean and look for
Sigma project more opportunities to
Lean eliminate waste
 Lean Focus
Do the job Re-work what
Prepare to do
we didn’t get Move to step 2
Step 1 Step 1 right in step 1

Do the job Re-work what

Prepare to do
we didn’t get Move to step 3
Step 2 Step 2 right in step 2

–Which process steps add value?

• Which process steps don’t add value?

You need to see the waste before you can even think about how
to get rid of it!
 Example: Car Repairs
Evaluate car Wait for a
Wait for a Move to repair
and diagnose repair work
technician work station
the problem station to open

Order parts Test and Prepare

Complete the
needed for rework the paperwork for
repair
repair repair file

–Which process steps add value?

• Which process steps don’t add value?
 The ‘7 Wastes’
Inappropriate
Waiting Transportation Defects
processing

Overproduction Inventory Unnecessary motions

 Definitions of 7 Wastes
•Waiting – any time spent waiting is not productive and waiting needs to be
minimized. Waiting means the operator waiting for work to do and also the product
waiting to be worked on.
•Transportation – movement of the product while in production including delivery from
one work station to the next and movement into a warehouse. It is important to
emphasize that this is movement of materials, not movement of the operator, which is
Unnecessary Motions, listed below.
•Inappropriate Processing – doing more work than the customer needs.
•Defects – any error or mistake that needs to be corrected causes a loss of value
and, be definition, waste.
•Overproduction – while an economic batch quantity is often prescribed, the resulting
finished goods inventory is not valuable to the company until a customer orders or
buys it.
•Inventory – while an economic batch quantity is often prescribed, the raw materials
and work-in-process inventory cost money and do not generate value for the
company until a customer places an order.
•Unnecessary Motions – movement of the operator to do the job. Walking across the
shop floor to get a tool from the tool room takes time that could be spent producing
valuable finished goods.
 7 Wastes Analysis worksheet
7 Waste Process Time
Description How to Impact
category Step Lost
(example) Test for Operator must step off 11 to 16 Attach leak tester to a
Unnecessary air leaks the assembly line to get minutes tether above the work
Motions the leak tester per shift station
 Eighth Waste
• Often listed as the 8th Waste of Lean:
• Underutilization of Human Talents
• Using your people for less than their potential value
• Assigning basic work to an advanced employee
• Not inviting employees to contribute new ideas or not
taking their ideas seriously

• The Seven Wastes of Lean are all observable, tangible

value stream wastes that can be actively controlled and
minimized

• The 8th waste is difficult to quantify and, further, it is

difficult to say if an employee will agree that s/he is being
Kaizen Events
 Example: Imagine yourself as a
cinema owner.....
... and you have got 12 halls, many Weekly report:
employees and you are very Number of sold tickets
successful
by film
by daytime
by seat category
You go on a world tour for 3 months...
by adults, children, reduced
tickets
Employees
You get an update every Monday with the
latest status of the key figures… Overtime
by workplace
Revenue
by screening
What does the report say?
by week day
 Mismatch?
Popcorn (fresh & warm) Number of sold tickets

enough parking spaces by film

close by by daytime
huge screens and a high by seat category
sound quality
by adults, children, reduced
clean toilets tickets
good view from all seats Employees
price Overtime
by workplace
revenue
by screening
by week day
Tools for Process Analysis
Two primary tools you can use in Process Analysis
Brown Paper Study

Fishbone Chart – or Ishikawa Diagram

Methods Environment Material

RESPONSE/
PROBLEM

Measure Machine Personnel

 Brown Paper Study
–Named for the heavy paper affixed to the wall
for use in the exercise

–The process being studied is drawn on the

paper or illustrated using sticky notes
 Conducting the Brown Paper Study

First time through: Map the process in detail

Value Added • Use flowchart symbols and swim lanes to depict the various
• Customer is departments and people involved
willing to pay
for it Second time through: Record the time needed to complete
• Changes the each process step, and the time between steps
product or
delivers the Third time through: Evaluate each process step as Value
service Added or Non-Value Added
• Done right
the first time Fourth time through: Identify “Quick Win” opportunities

Take action on the items that can be addressed now

 Quick Wins
• A Quick Win can be defined as
– FAST - a change in a process that takes less than a 2 weeks to fix
– CHEAP - should not cost anything
– EASY - can be fixed by one person and when completed does not
require extensive training to explain the change

• Quick wins may come out of process mapping

 Brown Paper VA/NVA Exercise
Conducted in Groups of 5-7 People

5 Mins
–On a flip chart post the process map for a
repeating, common process at your site
(note: flip chart paper can be spread on a
table top if sufficient wall space is not available)

15 Mins –Go through the process map 3 more times:

Evaluate the time required for each step
Assess each step as Value Added or Non-Value Added
Look for Quick Wins that can be made immediately

5 Mins
–De-brief on the Brown Paper process
as a full group
 Lean Process Improvement
Value-Added and Non-Value-Added Analysis
 Fishbone Diagram
The Fishbone Diagram is also known as “Cause & Effect
Diagram” or “Ishikawa Diagram”
CAUSES
(Sources of Variation or Variables)

Methods Environment Material

RESPONSE/
PROBLEM

Measure Machine Personnel

The “5 Whys” techniques can also be used and shown on

this diagram
 Create Fishbone
In Groups of 4-5
Use a Flipchart page to draw the Fishbone Diagram

Write the effect in the head of the fish:

15 Mins Why are deliveries not timely?
Label the bones:
Methods, Materials, Machines, Measures, Environment, Personnel

Brainstorm and list possible causes for late deliveries in the

appropriate channel (bone)

Items that you suspect as principle root causes of the

problem should be circled for further investigation
 Fishbone - Next Steps

Creating the Fishbone is not the end of analysis

Next step is to identify the possible root causes
that are most likely to be real root causes:
Reflected in the voice of the customer
Revealed through data collection
Repeating or chronic problems
Then analyze them further to determine real root
causes of defects, variation, and waste in the
process

55
 The 5 Whys

After listing possible causes of defects and

variation on the Fishbone chart, take the next step
to uncover the real root causes through process
analysis
Ask “Why does this occur?” for every item you
need to study further
For each answer provided, continue to ask “Why
does that happen?” or “Why do we do it that way?”
It is not uncommon to have to ask “Why?” five or
more times to find something actionable
56
Develop the Future State
 The Kaizen Event Format
Pre-event Event Post-event

• Business Leadership
• Identify issues
sets challenge
• Communicate
• Define expectations
Expectations • Implement follow-
• Identify up mechanisms
• Team Building
Participants • Provide necessary
• Skill Building
• Prepare Business support
Leaders • Issue Priority

• Facilitated Problem
Solving Teams
• Communication:
• Develop
Recommendations • Headlines

• Make Presentation • Newspapers

• Individual, Team & • Videos!!

Leader commitments
Prevention
 1. Process Map
Input for Output from
each step Start each step

X1, X2 Step 1 Y1

X3 Step 2 Y2

X4 Step 3 Re-work 2 Y3

X5 Check Re-work 1 Y4

X6, X7 Final Step Final Y

End
 2. Cause and Effects Diagram
Some reasons will tie
directly to inputs from
Category 4 Category 5 Category 6
the process map

R1 R2 R25
R3
R4=X6 R16 R13 R21=X3
R18 R11
Reasons = R__ R9 R17 Why does the
Final Y have
R10 R18 R24 defects?
R14 R5 R8
R23 R7 R20
R19=X1
R22 R6=X4 R16
R15 R12

Category 1 Category 2 Category 3

 3. Failure Modes and Effects Analysis
Step Failure Cause Frequency Severity Detectability RPN Action
from Mode from 1 sometimes 1 minor 1 easy to detect multiply
Process defect in Y__ Fishbone 3 often 3 major 3 difficult across the
Map 3 factors
9 always 9 critical 9 rare detection

Step 1 Defect 1 R1 1 3 1 3
R19 3 3 9 81
Step 2 Defect 2 R21 3 9 9 243
R25 9 9 9 729
R18 1 1 9 9
Step 3 Defect 3 R6 3 3 1 9
Check Defect 4 R12 9 1 1 9
Step Defect 5 R20 3 3 3 27
Re- Defect 6 R16 9 9 3 243
work R23 3 1 3 9
Defect 7 R2 1 1 1 1
Final Defect 8 R4 1 9 9 81
Step

RPN: Risk Prioritization Number

 Tying them together
1.Map the process
2.Identify defects in each process step
3.List the possible causes for defects using the
Fishbone chart
4.Validate which reasons are real root causes
5.Prepare FMEA and calculate RPNs
6.Develop action plans to improve frequency,
severity, and detectability
7.Start again by mapping the improved process
Example – Painting Truck Doors
Input for Door is Output from
each step built each step

Blow dry
Door, Dryer Clean, Dry Door
the door

Paint, Nozzle Spray first First Coat

coat

Air dry 10
Clean Air Defect-Free First Coat
minutes

Paint, Nozzle Spray 2nd Queue for Second Coat

coat 2nd coat

Tester Detail Defect-Free 2nd Coat

Defects?
errors

Queue for Door Ready for Installation

assembly
 Example – Painting Truck Doors
Environment Application Method
Some reasons will tie
directly to inputs from
Paint Quality
the process map

Clean Air Side to side Paint brand

Smoking vs. up/down
Lint cloths Clean Color
Temperature nozzles
Dryer 2nd coat clarity Why does the
Painted door
have defects?
One person 2nd shift
vs two Line
stoppage
Supervisor
Movement present

Staffing Pace of Work

 Example – Painting Truck Doors
Step Failure Cause Frequency Severity Detectability RPN Action
from Mode from 1 sometimes 1 minor 1 easy to detect multiply
Process defect in Y__ Fishbone 3 often 3 major 3 difficult across the
Map 3 factors
9 always 9 critical 9 rare detection

Blow Damp Dryer 1 9 9 81  Scheduled

Dry Door problem maintenance

First Run, Side to 3 9 3 81 Reinforce

Coat Drip side performance

Air Dry Damp Clean 1 1 9 9  Air filter 

Door air frequency
2nd Run, 2nd coat 9 3 3 81 Use UV lights
Coat Drip clarity .
Org Peel Nozzles 3 9 9 243  Sched maint
Re- Primer Stop 3 9 9 243 Inspect sooner
work show thru Staff 3 1 3 9 Backup pers
Damage Move 1 1 1 1 Door pads
Queue Damage Move- 1 9 9 81 Door pads
Scratch ment every time

RPN: Risk Prioritization Number

 Example – New Process Map
Instructions for Door is
each step built

Check maintenance Blow dry

record the door

“Paint side to side Spray first

from top to bottom” coat

Check air filter Air dry 10

change record minutes
Use UV lights
Check nozzle Spray 2nd Queue for
maintenance record coat 2nd coat

Test immediately Detail

Defects? Always use door pads!
errors

Queue for
Always use door pads!
assembly
 Root Cause Analysis and
1. Process Map
Input for
each step
Prevention Start
Output from
each step
2. Cause and Effects Diagram
X1, X2 Step 1 Y1
Some reasons will tie
directly to inputs from
Category 4 Category 5 Category 6
X3 Step 2 Y2 the process map

R1 R2 R25
X4 Step 3 Re-work 2 Y3 R3
R4=X6 R16 R13 R21=X3
R18 R11
X5 Check Re-work 1 Y4 Reasons = R__ R9 R17 Why does the
Final Y have
X6, X7 Final Y R10 R18 R24 defects?
Final Step
R14 R5 R8
R23 R7 R20
End R19=X1
R22 R6=X4 R16
R15 R12

Category 1 Category 2 Category 3

3. Failure Modes and Effects Analysis

Step Failure Cause Frequency Severity Detectability RPN Action
from Mode from 1 sometimes 1 minor 1 easy to detect multiply
Process Fishbone across the
Map
defect in Y__ 3 often
9 always
3 major
9 critical
3 difficult
9 rare detection
3 factors
4. Control Charts
Step 1 Defect 1 R1 1 3 1 3
R19 3 3 9 81
Step 2 Defect 2 R21 3 9 9 243
R25 9 9 9 729
R18 1 1 9 9
Step 3 Defect 3 R6 3 3 1 9
Check Defect 4 R12 9 1 1 9
Step Defect 5 R20 3 3 3 27
Re- Defect 6 R16 9 9 3 243
work R23 3 1 3 9
Defect 7 R2 1 1 1 1
Final Defect 8 R4 1 9 9 81
Step

RPN: Risk Prioritization Number

Innovation
What Is a Definition of Innovation?

Innovation is:
The successful conversion of
new concepts and knowledge into
new products and processes that
deliver new customer value
in the marketplace
So, why is this important? >>>

Quality Management Division

Innovation is Quality for Tomorrow
Innovation and Value Creation Technical Committee
 We Need Innovation Because…

• The World is Changing – for example

– In the Market Place, Asia is growing
– Our population is Aging
– Technology is becoming Digital
– The environment is warming

It is not the strongest of the species that survive,

nor the most intelligent, but ….
the one most responsive to change.- Charles Darwin
 It’s Not Just Creativity
Creativity does not guarantee actual innovation.
– Peter Drucker

The trouble with many good ideas is that people

have the notion that their work is done, that it is
up to somebody else to make it happen. – Ted
Levitt, Harvard Business School

Almost anyone can have a good idea.

What is needed for actual innovation are
people who can assemble, coordinate,
and execute the necessary elements.
The Innovation Process Flow Is:
• 1) Find the Opportunity and then
• 2) Connect to Conceptual Solutions

Select the preferred Solution and then

• 3) Make the solution User Friendly

• 4) and then get it Get to Market

Showing this as a model >>>

 Innovation Management

A team approach is needed to deliver innovations

 NABC Value Proposition

The Value Proposition – NABC method*

• Need: What is the customer’s unmet need?
• Approach: What is your idea?
• Benefits: How will it help the customers?
• Competition: What’s the risk of not doing it?

Write it quickly – 3 minutes

Recite it quickly – 30 seconds
 Example
Cell phone use while driving creates dangerous
conditions. A hands-free device still requires the
driver to dial the number. We propose voice-
activated dialing for all numbers stored and also
for numbers dictated while driving. With one
touch, the voice-dialing app is opened. Over
98% of all speech patterns are accommodated
by the software. We would charge $10 per year,
and our cost is $1.98 per person based on
10,000 subscribers. Competitors are pushing
speakerphones built into the car, and they are
marketing in states with hand-free laws.
Additional Questions