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Generate potential solutions
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•Analyse process
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•Detem1ine potential root causes
•Hypothesis Testing Pareto Chart
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•Apply comparative methods Document project
Review other applications
if necessary. Implement scorecard
•Review learnings
Implement controls Output: Recommendations for future projects an
Output: Confirmation that the best solution to eliminate the Output:Solution embedded and "routinised" in improvements to team processes. Project
roblem & it.s root cause s has been im lemented. relevant process, procedures and standards. documentation and leamin s " ack"
Six Sigma
1
Outline
◼ Measure
◼ Evaluate / Analyze
◼ Improve
◼ Control
◼ Design for Six Sigma
◼ Green Belts & Black Belts
2
What is Six Sigma?
3
What Six Sigma is Not
4
Why Companies Need Six Sigma
5. Improves profits!
5
How good is good enough?
But what could happen at a quality level of 99.9% (i.e., 1000 ppm),
6
How can we get these results?
7
Six Sigma as a Metric
Sigma = = Deviation
( Square root of variance )
1
2
3
5
6
7
0
4
between + / - 1 68.27 % result: 317300 ppm outside
(deviation)
between + / - 2 95.45 % 45500 ppm
8
Effect of 1.5 Sigma Process Shift
9
3 Sigma Vs. 6 Sigma
◼ Spends 15~25% of sales dollars on cost of ◼ Spends 5% of sales dollars on cost of failure
failure
◼ Relies on inspection to find defects ◼ Relies on capable process that don’t produce
defects
◼ Does not have a disciplined approach to ◼ Use Measure, Analyze, Improve, Control and
gather and analyze data Measure, Analyze, Design
10
Sigma and PPM
PPM
2 308,537 80 800000
70 From 5 to 6 700000
3 66,811 60 600000
50 500000
% Change
PPM % Change
PPM
40 400000
4 6,210 30 From 4 to 5 300000
20 200000
From 3 to 4
5 233 10
From 1 to 2
100000
0 0
1 2 3 4 5 6
6 3.4
Process Sigma
Process Defects per Million
Capability Opportunities
AlliedSignal ROI
1992-1996
• $1.4 Billion cost reduction.
• 14% growth per quarter.
• 520% price/share growth.
• Reduced new product introduction time by 16%.
• 24% bill/cycle reduction.
12
Six Sigma ROI
13
Six Sigma as a Philosophy
Old Belief
4 High Quality = High Cost
Quality
Internal & Prevention &
External Appraisal
Costs Failure Costs Costs
New Belief 4
New Belief
5
High Quality = Low Cost
6
Quality
14
“The fact is, there is more reality with this
[Six Sigma] than anything that has come
down in a long time in business. The more
you get involved with it, the more you’re
convinced.”
Larry Bossidy
CEO, Honeywell
15
Six Sigma as a Strategic Tool
Issue Classical Six Sigma
16
Six Sigma Tools
Baselining SPC
17
What Does Six Sigma Look Like?
18
Six Sigma Principles
◼ Customer Focus
◼ Leadership
◼ Innovative and Proactive
◼ Boundary-less
◼ World Class Quality
◼ Fact Driven
◼ Process Management
19
Problem Solving Methodology
Phase 1:
Define
Phase 2:
Characterization
Measure
Phase 3:
Breakthrough
Analyze
Strategy
Phase 4:
Improve
Optimization
Phase 5:
Control
◼ Business Case
◼ Problem Statement
◼ Goal Statement
◼ Team Members
◼ Team Role & Responsibility
◼ Action plan VS. budget
21
Define Phase
◼ Define Process
◼ Define Customer requirement
22
Define Phase
23
Define Phase
◼ Project Review
◼ Project Charter
◼ Business Case
◼ Problem Statement
◼ Goal Statement
◼ Scope of process
◼ Prioritized customer requirement
24
Problem Definition
✓ What do you want to improve?
✓ What is your ‘Y’?
Reduce
Complaints
(int./ext.)
Reduce Reduce
Defects Cost
Evaluate Control
Understand Process Maintain New Process
Improve
Improve and Verify Process
27
Measure Phase
28
Measure Phase
29
Measure Phase
30
Measure Phase
◼ SIPOC-RM
◼ CTQ-R
◼ Check Sheet
◼ MSA Graph
◼ Basic Statistics Role Throughput Yield
Process Capability
DPMO
COPQ Calculation
31
Measure Phase
◼ Project Review
◼ Customer satisfaction
◼ Effectiveness of process
◼ Efficiency of process
32
Measure Phase
Baselining:
Quantifying the goodness (or badness!) of the current process,
before ANY improvements are made, using sample data. The key to
baselining is collecting representative sample data
Sampling Plan
- Size of Subgroups
- Number of Subgroups
- Take as many “X” as possible into consideration
33
How do we know our process?
Process Map
Fishbone
Historical Data
34
RATIONAL SUBGROUPS
Minimize variation within subgroups
BLACK NOISE Maximize variation between subgroups
(Signal)
WHITE NOISE
(Common
Cause Variation)
RESPONSE
PROCESS
TIME
RATIONAL SUBROUPING Allows samples to be taken that
include only white noise, within the samples. Black noise
occurs between the samples. 35
Visualizing the Causes
Within Group
Time 1
Time 2
Time 3
Time 4
36
Visualizing the Causes
Time 1
Time 2
Time 3
Time 4
•Called shift (truly a
measurement in sigmas of how
far the mean has shifted)
•Indicates our process control
st + shift = total •The vital few
Between Groups
37
Assignable Cause
◼ Outside influences
◼ Black noise
◼ Potentially controllable
◼ How the process is actually performing over time
Fishbone 38
Common Cause Variation
39
Gauge R&R
40
Measure
Characterize Process
Evaluate Control
Understand Process Maintain New Process
Improve
Improve and Verify Process
41
Evaluate / Analysis Phase
◼ Data Analysis
◼ Process Analysis
◼ Formulate Hypothesis
◼ Test Hypothesis
42
Evaluate / Analysis Phase
43
Evaluate / Analysis Phase
◼ Project Review
44
In many cases, the data sample can be transformed so that it is approximately normal. For example,
square roots, logarithms, and reciprocals often take a positively skewed distribution and convert it to
something close to a bell-shaped curve
45
What do we Need?
LSL USL LSL USL
47
Graph>Box plot Graph>Box plot
DBP
Without X values 10
DBP
75% 10
9 94
10
99 Shift
Box plots help to see the data distribution
94
48
Statistical Analysis
5
20
Frequency
Frequency
4
3
10
2
0 0
0.000 0.005 0.010 0.015 0.020 0.025 0.000 0.005 0.010 0.015 0.020 0.025
New Machine Machine 6 mths
Regression Analysis
Regression Plot
Y = 2.19469 + 0.918549X Is the factor really important?
R-Sq = 86.0 %
60
the factor?
Y
30
20
10 Regression
95% PI
Has our improvement made an
impact
0
5 15 25 35 45 55
Z shift
1.0
0.5
C D
1 2 3 4 5 6
good poor good
TECHNOLOGY
ZSt
A- Poor Control, Poor Process
B- Must control the Process better, Technology is fine
C- Process control is good, bad Process or technology
D- World Class
50
Measure
Characterize Process
Evaluate Control
Understand Process Maintain New Process
Improve
Improve and Verify Process
51
Improvement Phase
52
Improvement Phase
◼ Brain Storming
◼ Creativity
◼ Criteria Weighting
◼ Change Management tools
◼ DOE
◼ Cost/Benefit Analysis
53
Improvement Phase
◼ Project Review
◼ Validated pilot study
54
Design of Experiments (DOE)
◼ To estimate the effects of independent Variables on Responses.
◼ Terminology
➢ Factor – An independent variable
➢ Level – A value for the factor.
➢ Response - Outcome
X Y
PROCESS
55
Why use DoE ?
x1 x2
56
DoE Techniques
◼ Full Factorial.
4
➢ 2 = 16 trials
➢ 2 is number of levels
➢ 4 is number of factors
• All combinations are tested.
• Fractional factorial can reduce number of trials from 16
to 8.
57
DoE Techniques
◼ Fractional Factorial
◼ Taguchi techniques
◼ Half fraction
58
Steps in Planning an Experiment
1. Define Objective.
2. Select the Response (Y)
3. Select the factors (Xs)
4. Choose the factor levels
5. Select the Experimental Design
6. Run Experiment and Collect the Data
7. Analyze the data
8. Conclusions
9. Perform a confirmation run.
59
“….No amount of experimentation can prove me
right; a single experiment can prove me wrong”.
- Albert Einstein
60
Measure
Characterize Process
Evaluate Control
Understand Process Maintain New Process
Improve
Improve and Verify Process
61
Control Phase
62
Control Phase
◼ Control chart
63
Control Phase
◼ Project Review
◼ Procedure
◼ Work instruction
◼ Full implementation
64
Control Phase
- Confirmation of Improvement
- Confirmation you solved the practical problem
- Benefit validation
- Buy into the Control plan
- Quality plan implementation
- Procedural changes
- System changes
- Statistical process control implementation
- “Mistake-proofing” the process
- Closure documentation
- Audit process
- Scoping next project
65
Control Phase
66
Control Phase
Yes Yes
Oport. Area
Normally dist. Interest in Yes
constant from
sample to C, u data X, Rm sudden mean
changes
sample
No No
No
If mean is big, X and
u R are effective too MA, EWMA or X- R
CUSUM and
Yes Rm
Size of the
subgroup p, np Use X - R chart with
constant
modified rules
More efective to
No Ir neither n nor p are
detect gradual
changes in long term
small: X - R, X - Rm
p are effective
69
70
Additional Variable-Based Tools
1. PRE-Control
•Algorithm for control based on tolerances
•Assumes production process with measurable/adjustable
quality characteristic that varies.
•Not equivalent to SPC. Process known to be capable of
meeting tolerance and assures that it does so.
•SPC used always before PRE-Control is applied.
•Process qualified by taking consecutive samples of individual
measurements, until 5 in a row fall in central zone, before 2
fall in cautionary. Action taken if 2 samples are in Cau. zone.
•Color coded
RED YELLOW GREEN YELLOW RED
ZONE ZONE ZONE ZONE ZONE
Reference Line
Reference Line
PRE-Control
DIMENSION
NOMINAL
PRE-Control
Tolerance
Tolerance
High
Low
Limt
Limt
1/4 TOL. 1/2 TOL. 1/4 TOL.
71
Additional Variable-Based Tools
73
What is Design for Six Sigma (DFSS)?
74
DFSS Methodology & Tools
DELIVERABLES
TOOLS
75
Design for Six Sigma
◼ Pre-DEFINE Phase
76
Design for Six Sigma
◼ DEFINE Phase
77
Design for Six Sigma
◼ MEASURE Phase
78
Design for Six Sigma
◼ ANALYZE/HIGH-LEVEL DESIGN Phase
79
Design for Six Sigma
80
Design for Six Sigma
81
Design for Six Sigma
◼ Concurrent Engineering
◼ Software Engineering Tools
(CMM, CASE)
82
Design for Six Sigma
◼ VERIFY Phase
83
Design for Six Sigma
– Pilot Testing
– Full-Size Scale Up and Commercialization
– Design Information and Data Management
– Lean Manufacturing
84
M.A.D
Six Sigma Design Process
Stop
Adjust
Technical process &
design
Requirement
Con- Preliminary Identify
Obtain Data on Calculate Z Rev 0
sumer Drawing/Database Critical
Similar Process values Drawings
Cue Process
Identity
CTQs
Stop
Fix process
1st piece & design
inspection
Z<3
Prepilot Recheck
Data Obtain data ‘Z’ levels
Z>= Design Intent
M.A.I.C
Pilot data
85
AFFINITY DIAGRAM
INNOVATION
CHARACTERISTICS:
PRODUCT
MANAGEMENT • Organizing ideas into meaningful
OVERALL categories
GOAL OF
SOFTWARE • Data Reduction. Large numbers of qual.
Inputs into major dimensions or categories.
KNOWLEDGE OF
COMPETITORS
METHODS TO MAKE
EASIER FOR USERS
PRODUCT PRODUCT OUTPUT SUPPORT
DESIGN MANAGEMENT
SUPERVISION DIRECTORY
ORGANIZATION
86
MATRIX DIAGRAM
HOWS
Attendant assigned
Attendant assigned
RELATIONSHIP
Obtains equipment
Transports patient
Patient scheduled
Attendant arrives
Attendant arrives
Notifies of return
Provide Therapy
Patient returned
MATRIX
CUSTOMER
WHATS IMPORTANCE
MATRIX
Arrive at scheduled time 5 5 5 5 1 5 0 0 0 0 0
Arrive with proper equipment 4 2 0 0 5 0 0 0 0 0 0
Dressed properly 4 0 0 0 0 0 0 0 0 0 0
Delivered via correct mode 2 3 0 0 1 0 0 0 0 0 0
Take back to room promptly 4 0 0 0 0 0 0 5 5 5 5
IMPORTANCE SCORE 39 25 25 27 25 0 20 20 20 20
RANK 1 3 3 2 3 7 6 6 6 6
87
COMBINATION ID/MATRIX DIAGRAM
CHARACTERISTICS:
•Uncover patterns in
cause and effect
Total arrows
Out arrows
In arrows
Strength
Add features 5 0 5 45
Make existing product faster 2 1 3 27
Make existing product easier to use 1 2 3 21
Leave as-is and lower price 0 3 3 21
Devote resources to new products 1 1 2 18
Increase technical support budget 0 2 2 18
88
Green Belts & Black Belts
◼ GE has very successfully instituted this program
◼ 4,000 trained Black Belts by YE 1997
◼ 10,000 trained Black Belts by YE 2000
◼ “You haven’t much future at GE unless they are selected to
become Black Belts” - Jack Welch
◼ Kodak has instituted this program
◼ CEO and COO driven process
◼ Training includes both written and oral exams
◼ Minimum requirements: a college education, basic statistics,
presentation skills, computer skills
◼ Other companies include:
◼ Allied Signal -Texas Instruments
◼ IBM - ABB
◼ Navistar - Citibank
89
Green Belts & Black Belts
Time on
Consulting/ Related
Task Mentoring
Projects
Training
Utilize
Green Belt Statistical/Quality
technique Find one new
2%~5% 2 / year
green belt
Lead use of
technique and
communicate new
ones
Master Consulting/Mentor
80~100% Five Black Belts 10 / year
ing/Training
Black Belt
90
“It is reasonable to guess that the next
CEO of this company, decades down the
road, is probably a Six Sigma BB or MBB
somewhere in GE right now…”
Jack Welch
Ex-CEO, GE
91