IE Elective 3

LEAN SIX SIGMA

Overview

 What is Lean Six Sigma?

 What can Lean Six Sigma do?
 How to get started

2
Paths to Cost Reduction
 Cut services
 Reduce labor (lay-off)
 Contract work out
 Eliminate product features
Lean Six Sigma
 Remove roadblocks so your
employees can produce
 Assign resources to
bottlenecks
 Maximize internal capabilities
 Focus on what the customer
wants to buy 3
What is Lean Six Sigma?
Combined 2 industry concepts:
 Lean
 Six Sigma

Combines problem solving tools:

Kanban Visual Value ANOVA DFSS
Kaizen Mgt.
Stream
5S Mapping DOE MSA
SPC
Setup Root Cause
JIT - Pull Reduction Hypothesis
Testing Analysis

Lean Six Sigma 4

Lean
 Focus on what is of VALUE to the customer
 Separate non-value added from value added
 Map the actions required to produce (value stream)
 Eliminate activities that do not move the product closer to
its final form
 Make the remaining value added activities flow
smoothly
 Produce only what customers need (pull)
 Continuous improvement

Lean Six Sigma 5

Practical Lean Moves
 Which is the better airline ticket?
Traveling to Groton, CT

Ticket A Ticket B
 $500 round trip  $650 round trip
 6 hours  3 hours
 3 layovers  1 layover
 Arriving in NYC  Arriving in
Groton/New London
What does value mean to you?
Lean Six Sigma 9
Lean Philosophy
Value
 More to value than just cost
 “Defined by the ultimate customer” – Womack
 Voice of the Customer (VOC)
 Expressed in terms of
A specific product
A function or capability
 Questions
 What does the customer want to buy?
 What would they pay extra for?

Lean Six Sigma

Focus on what is of VALUE to the customer 10
Types of Activities
Value-Added
 Brings product closer to it’s final form
 Changes the form, fit or function
 An activity the customer is willing to pay for
Non-Value-Added
 Does not contribute to bringing the product to it’s final form
 Doesn’t improve the form, fit, or function of the product or
service on the first pass through the process.
 An activity the customer is not willing to pay for
 Waste

Lean Six Sigma

Separate non value added from value added 11
8 Types of Waste

UNDER-UTILIZED
SKILLS

Steps are wasteful, people are valuable

Lean Six Sigma 12
Lean Example

Certification Package

Not Required

Mill Test Report

Redundant Review

Minimize Rework

Lean Six Sigma 13

 Batch versus Continuous Flow
Batch & Queue Processing

Process Process Process

A B C

10 Minutes
10 Minutes
10 Minutes
30+ Minutes for order of 10

Continuous Flow
Process Process Process
A B C

12 Minutes for
order of 10
Lean Six Sigma 14
Lean Approach From: NAVSEA VSA Training

Dept 1
Batch Continuous Flow
Dept 2 DONE 4 3
IN OUT
OUT

IN IN

Dept 3
1 2

Dept 4

OUT IN IN

OUT

DONE

Batch processing has a direct impact

on the total Work-in-Process
Lean Approach From: NAVSEA VSA Training

Disassemble
Wait Transport
Transport Wait Set-up
Machine Machine Re-Install
Remove From
Ship

Start Time
Finish
Broken Repaired
Component Component

= Value Added Time = Non-Value-Added Time (WASTE)

Value-Added time is typically only a small

percentage of the total time
Lean Six Sigma 16
 Lean Approach
Approved for Public Release

From: NAVSEA VSA Training

Total Lead --time

time = 48 days
Value added time = 315 secs !!!!
Overtype with Section Title

Lean Six Sigma 17

Date / Reference / Classification
Lean Approach
From: NAVSEA VSA Training

Traditional Focus
• Improve Value-Added
work steps
• Better tools, machines,
Time
Small Amount of
instructions
LARGE amount Time Eliminated • Result: Small time
savings
of time saved
Time savings have a direct
Lean Focus
impact on
• Make all of the Value Stream visible
• Cost • Capacity
• Reduce or eliminate Non-Value-
Added portions of the process • Schedule • Flexibility
• Result: Large time savings • Resources • Etc.
Lean Six Sigma 18

Approved for Public Release

Continuous Flow

Traditional Thinking: Continuous Flow Thinking:

Batch Production—like a meandering
stream with many stagnant pools,
waterfalls, and eddies
Doubling production rate means
doubling resources
Pipeline with fast-flowing product –
no stops, piles, or back-ups
Doubling production rate means
halving the time waiting

“’Flow’ production was an even more valuable innovation of Henry

Ford’s than his better-known ‘mass’ production model.”
Lean Six Sigma 19

Approved for Public Release

 How Does Lean
Solve Problems?
 Focuses on what is of VALUE to the customer
 Understand customer expectations and requirements
 In terms of the what the product provides, not just the product itself
 Eliminates activities that do not move the product closer to it’s final
form
 Reduces the 8 types of waste
 Creates continuous flow

Lean Six Sigma 20

Six Sigma Philosophy

 Reduce variation
 Y=f(X)
 Making decisions based on data

Lean Six Sigma 21

What is “Six Sigma”?
Change in quality philosophies
Traditional “Goalpost” Philosophy Taguchi Philosophy
LSL USL LSL USL

Loss Loss Loss Loss

$$ $$ $$ $$
OK Loss

Anything outside Any deviation from

the specification limits the target causes
represents quality losses losses to society
Lean Six Sigma 22
 How Does Six Sigma Solve Problems?

Practical Problem Statistical Problem

(Define/Measure) (Analyze)

Practical Solution Statistical Solution

(Control) (Improve)

Lean Six Sigma

Y=f(x) 23

Approved for Public Release

 Six Sigma Example

 Practical Problem
 Pass rate for Technicial Exams was declining
 Statistical Problem
 Y=f(X)
 Y – Scores
 X
 Exam section
 Place of training
 How often skills are used (experience)
 Elapsed time since training
 Statistical Solution
 3 sections of the exam are the highest trouble spots
 Experience is the most significant factor in passing
 Practical Solution
Lean Six Sigma
 Focus training on 3 areas for inexperienced technicians 24
 What is “Six Sigma”?
99.99966% of values are within specifications
m
LSL USL

Lean Six Sigma

ss s ss s ss s 25

3s Process
A6
Is “Six Sigma” Overkill?
99% (≈3.8s)
 20,000 lost articles of
mail per hour
 15 minutes of unsafe
drinking water each day
 5,000 incorrect surgical
operations per week
 2 short or long landings
at most major airports
each day
 11 hours of no electricity
per month
Lean Six Sigma
99.99966% (6s)
 7 lost articles of mail per
hour
 1 minute of unsafe
drinking water per 7
months
 1.7 incorrect surgical
operations per week
 1 short or long landing
every 5 years
 1 hour of no electricity
every 34 years 26
Pipe Welding Quality
Reduce concave & convex defects in pipe butt welds

Experimented on the effects of:

Convex
• Purge pressure
• Starting point
• Weld segment overlap
• Intersegment temperature
• Welder technique Concave

Identified key factors to control and ones that had no effect

Lean Six Sigma 27

Approved for Public Release

Ways To Get To Six Sigma

 Identify critical inputs & control them

 Quantifiable management
 Measure performance
 Decisions based on data

Y=f(x)
Lean Six Sigma 28

Approved for Public Release

Supplier Lean Outreach

Approved for Public Release

Why Supplier Lean Outreach?

 Extend Lean and Six Sigma to suppliers

31% 30%
Government Purchased
Material Material
Shipyard
Labor
39%

Lean Six Sigma

Block III (SSN787) Costs 30
Methodology
1. Voice of the Customer
 All customers not just purchasing
2. Kick-off with Vendor
 Identify problems, issues, roadblocks
3. Value Stream Analysis & Development of Improvement Plan
4. Improvement Plan Execution and
Follow-on Onsites

Lean Six Sigma 31

How To Get Started
“We all tend to concentrate on taking corrective
actions that we know how to take, not necessarily
concentrating on the problems we should correct
and the actions needed to correct (them).”
- Eliyahu Goldratt
How To Get Started
Involve the employees
 Examine the detailed process with them
 Empower them to make process changes to:
 Eliminate non-value-added steps
 Keep adding value continuously without
interruptions
 Ask the right questions
 What can we do to save time?
 Not: What can we do to save
money?
 Get to the root causes
Lean Six Sigma
 5-Whys, etc. 33
How To Get Started
Reduce work in process (WIP):

WIP = Waiting = Longer lead times

Delayed sales
Increased expenses
= Less Profit!
Completions
2 1 1 1
3 2 1
6 6
1 1
3 5 1
4 1 2 1 1
2 5 1 1
1 5 1 3 1 4
1

200 Units of Work In Process 20 Units/Day

Jobs In WIP 200

Avg.LeadTime = = = 10 days
Avg.Completion Rate 20
Lean Six Sigma 34

Approved for Public Release

What is Lean Six Sigma?
What is Lean?
 Lean is simply a method of streamlining a process, resulting in
increased revenue, reduced costs and improved customer
satisfaction.
 A Lean process:
Is faster
Is more efficient and economical
Delivers satisfactory quality

 Lean is achieved by removing “Waste“, which is activity not required

to complete a process.
 After removing Waste, only the steps required to produce a product
or service that is satisfactory to a Customer will remain.
Before and After….
What is Six Sigma?
Six Sigma is simply a method of efficiently solving a
problem. Using Six Sigma reduces the amount of defective
products manufactured or services provided, resulting in
increased revenue and greater customer satisfaction.
What exactly does “Six Sigma” mean?
 Six Sigma is named after a statistical concept where a
process only produces 3.4 defects per million
opportunities (DPMO). Six Sigma can therefore be also
thought of as a goal, where processes not only
encounter less defects, but do so consistently (low
variability).
 Basically, Six Sigma reduces variation, so products or
services can be delivered as expected reliably.
Statistically,
The Benefits of Using Lean Six Sigma
A. Increases revenue
B. Decreases costs
C. Improves efficiency
C. Improves efficiency
More about LSS
• Uses a specific problem solving approach and specialized
tools to improve process and products
• Data driven with a goal of reducing the number of
unacceptable products or events
• Reduce process variation to such degree that the amount
of unacceptable product is no more than 3.4 defects per
million parts (99.99967% conformance)
• Make product that satisfies the customer and minimizes
losses and to make cost effective and tighter quality
processes.
Lean Six Sigma Frameworks

Lean Six
Sigma

DMAIC DMADV DFSS

Used to improve Used to design new Used to set up a LSS
existing processes processes Method/organization
Lean Six Sigma vs Classical PSP

Issue Classical Lean Six Sigma

Problem Fix Prevent
Analysis Experience Data
Focus Product Process
Behavior Reactive Proactive
Suppliers cost capability
3δ vs 6δ Process Level
3δ Process
Coast to coast plane ride for a cup of coffee

4δ Process
45 minutes drive for a cup of coffee

5δ Process
5 minutes drive for for a cup of coffee

6δ Process
4 steps for a cup of coffee
Is 99% still not OK?
99% Process is OK

 20,000 lost articles of mail per hour

 15 minutes unsafe drinking water
 5,000 incorrect surgeries per week
7 hours without electricity per month
Sigma Numbers
Lean Thinking
 Developed in the 1940s by Toyota
 Taiichi Ohno – EVP Production Engineer
 Toyota Production (TPS)
 TPS known as Lean in the USA
History of Six Sigma

Six Sigma (6σ) is a set of techniques and tools for process

improvement. It was introduced by engineers Bill Smith &
Mikel J Harry while working at Motorola in 1986. Jack
Welch made it central to his business strategy at General
Electric in 1995.
What does Six Sigma do?
It seeks to improve the quality of the output of a process
by identifying and removing the causes of defects and
minimizing variability in manufacturing and business
processes. It uses a set of quality management methods,
mainly empirical, statistical methods, and creates a
special infrastructure of people within the organization
who are experts in these methods. Each Six Sigma project
carried out within an organization follows a defined
sequence of steps and has specific value targets, for
example: reduce process cycle time, reduce pollution,
reduce costs, increase customer satisfaction, and
increase profits.
Six Sigma 6δ
The term Six Sigma (capitalized because it was written that way
when registered as a Motorola trademark on December 28,
1993) originated from terminology associated with statistical
modeling of manufacturing processes. The maturity of a
manufacturing process can be described by a sigma rating
indicating its yield or the percentage of defect-free products it
creates. A six sigma process is one in which 99.99966% of all
opportunities to produce some feature of a part are statistically
expected to be free of defects (3.4 defective features per
million opportunities). Motorola set a goal of "six sigma" for all
of its manufacturing operations, and this goal became a by-
word for the management and engineering practices used to
achieve it.
“X” Belts
“X” Belt
A project is executed by an “X” Belt

• Yellow Belt – Receives between 8 – 16 hours of

Training
• Green Belt – Second Most Powerful; Receives 40 – 60
Hours of Training
• Black Belt – Most Powerful; Receives 80 – 100 Hours of
Training
“X” Belt Applications
 Yellow Belt Line of Sight seldom extends be their own operation

➢ Green Belt Line of Sight is generally a process

➢ Black Belt Line of Sight can cut across geographical regions or when several
processes intersect.
Lean Six Sigma Belt Levels
YELLOW
Knows the basic tools of LSS and acts as data analysts in cooperation with GB/BB
projects. Implements quick wins and LSS improvements in short span of time
GREEN
Primary implementer of the LSS methodology. He earns this title by taking classes
in Six Sigma, demonstrating a competence on statistical tests and implementing
projects using LSS Tools
BLACK
Has sufficient skills to allow him to act as an instructor, mentor and expert to
green belts. A BB is also competent in additional LSS tool-specific software
programs and statistics.
MASTER BLACK
Generally has management responsibility for the LSS organization. This could
include setting up training, measuring its effectiveness, coordinating efforts with
the rest of the organization and managing LSS people.
Tool Application Matrix

Quality Diagnostic Control Experimental

Tools Tools Tools Tools

Yellow 80% 10% 10% --

Belt
Green 30% 30% 30% 10%
Belt
Black 15% 15% 20% 50%
Belt
Define Analyze Control Improve
Measure
DMAIC
DMAIC: The Basic LSS Roadmap
Define – Measure – Analyze – Improve -Control
Define – Measure – Analyze – Improve -Control
The Six Sigma DMAIC (Define, Measure, Analyze,
Improve, Control) methodology can be thought of as a
roadmap for problem solving and product/process
improvement. Most companies begin implementing Six
Sigma using the DMAIC methodology, and later add the
DFSS (Design for Six Sigma, also known as DMADV or
IDDOV) methodologies when the organizational culture
and experience level permits.
Define – Measure – Analyze – Improve -
Control
While the DMAIC methodology presented may appear linear and
explicitly defined, it should be noted that an iterative approach
may be necessary – especially for Black Belts and Green Belts
that are new to the tools and techniques that make up DMAIC.
For instance, you may find that upon analyzing your data
(Analyze phase) you did not gather enough data to isolate the
root cause of the problem. At this point, you may iterate back to
the Measure phase. In addition, prior knowledge of the tools and
techniques is necessary in determining which tools are useful in
each phase. Remember, the appropriate application of tools
becomes more critical for effectiveness than correctness, and
you don’t need to use all the tools all the time
DEFINE
 DMAIC Phase Steps Tools Used
D – Define Phase: Define the project goals and customer (internal and external)
deliverables.
• Define Customers and Requirements • Project Charter
(CTQs) • Process Flowchart
• Develop Problem Statement, Goals and • SIPOC Diagram
Benefits • Stakeholder Analysis
• Identify Champion, Process Owner and • DMAIC Work Breakdown Structure
Team • CTQ Definitions
• Define Resources • Voice of the Customer Gathering
• Evaluate Key Organizational Support
• Develop Project Plan and Milestones
• Develop High Level Process Map
 DEFINE
Choose the problem to be addresses
Validate Problem Statement and Goals
Create/Validate Process Maps and Scope
Update Project Charter
Complete the Define Toll Gate Review
Purpose of Define Phase
The purpose of the Define Phase is to have the team reach to an
agreement on the scope, goals and objectives of the project.

Key Steps in Define Phase

1. Choose the problem to be addressed
2. Validate Problem Statement and Goals
3. Create/Validate Process Maps and Scope
4. Update Project Charter
5. Complete the Define Toll Gate Review
Define Phase
In this phase, the leaders of the project create a Project
Charter, a high-level view of the process, and begin to
understand the needs of the customers.

Define the problem by developing a Project Charter.

Define process by developing maps of the process –
SIPOC.
Define your customer and their requirements – Voice of
the Customer: Customer Survey.
Project Selection Criteria
Voice of Performing financial
Business analysis identifies gaps in
(VOB) performance

Business Voice of Identify gaps in meeting

List of
Objectives Customer customer needs provides
Potential
(VOC) ideas for projects
Projects

Process analysis links the

Voice of business by process (vs
Process functions) and gives
(VOP) perspective on projects
Selecting a Project
 Process with the obvious defects.
 Process with the capability issues.
 Has the potential to result in increased revenue,
reduced cost or improved efficiency.
 Project should have identifiable process inputs and
outputs.
 A good Six Sigma project should never have a pre-
determined solution.
 Has collectable data.
 SIPOC
DIAGRAM
What is a SIPOC

 It’s a high level process map

 A bird’s eye view
 A tool that allows a team to see their process in relation
to all needed inputs, outputs and suppliers
 Shows process boundaries
 Identifies relationship between suppliers, inputs and the
processes
 Determines key customers
What is a SIPOC?

 Suppliers of your process

 Inputs to the Process
 Process your team is focused on
 Outputs the process must create
 Customers of the process output
8 Steps to Project Scoping
1. Identify the customer
2. Define customer’s expectations and needs
3. Clearly specify your deliverables tied to those expectations
4. Identify CTQs for those deliverables
5. Map your process
6. Determine where in the process the CTQs can be most seriously affected
7. Evaluate which CTQs have the greatest opportunity for improvement
8. Determine the project to improve the CTQs you have selected.
The SIPOC Diagram
SIPOC Diagram- Example
SIPOC Diagram- Example
What is a Project Charter?
 A Project Charter is a “contract” between the
organization’s leadership and the project team created at
the outset of the project.
 Clearly describes the problem and intended scope of the
project
 Confirms that the teams plan matches the expectations of
Senior Management
 Identifies team members and percent of time to be
allocated to the project work
 Establishes a timeline for the project
 Serves as a communication vehicle to establish a common
understanding of the project among all involved
Project Charter
 Business Case: The business reasons for doing the project. Usually, this
includes the financial impact, customer impact, and/or risk of not taking
action.
 Problem Statement: The problem usually is captured in the form of a
measurement. The problem statement should not contain the solution, the
root cause on imply blame.
 Goal Statement: The measurement goal. Usually SMART goals are
established.
 Scope: The magnitude of the project. How much the team is willing to
take on, give time, money and resources.
 Team Members: The people who will participate in the project. Core
team members are those that meet regularly.
 Preliminary Plan: The timeline/timetable and actions to be taken each
week or month
Activity No 1.

 I.

Using the business case provided, create your own project

Activity no 1

 II.XYZ Beverages hired your team to conduct a

process audit and improvement in their
company. The owner ask you to prepare a
SIPOC diagram of the order taking to order
serving process of the shop. Provide the
necessary element of the diagram.
Define Phase Deliverables and Toll Gate
Review
 A completed Project Charter
 Documentation Showing the customers or will be affected
by the project and what are their needs.
 High Process Level Map, at least a SIPOC Diagram
 Updated Project Charter and communication to
stakeholders
MEASURE
Purpose of Measure Phase
The purpose of the Measure Phase is to thoroughly understand the current state of the
process and collect reliable data on the process speed, quality and costs that you will
use to expose the underlying causes of the problems.

Key Steps in Measure

1. Determine outputs and inputs of the Process
2. Understand the y = f (x) paradigm
3. Create and execute operational definitions and data collection plan
4. Validate the Measurement System (GR&R)
5. Assess capability and performance of the process
6. Complete the measure phase toll gate review
Y = f(X)
Measurement Power
 Knowledge is verifiable by repeated measurements of x and y
 Let the data do the talking!

Y f (x)
Define -> y
DMA AIC
Measure -> y
(capability

Analyze -> y, x
ACTIVATED
Improve -> x BY MEASUREMENT
(vital few)

Control ->x
Measurement Power

Data in Numbers

Statistics

Information
What is a Measure?
A measure is a quantified value or characteristic:
Here are few examples
Cycle Time ( seconds, minutes, hours)
Days (number of days)
Size (length, width, height)
Dollars (revenues, sales, profits, costs, loss overtime)
Attribute counts (types of loans, gender, products, days of
the week)
Defect counts (number of errors, complaints, late items)
Good vs Poor Measures
▪ Good Measures ▪ Poor Measures
▪ a) Sufficient – available to be ▪ a) Poor or non existent operational
measured regularly definitions.
▪ b) Relevant – help to ▪ b) Difficult measures
understand/isolate the problems
▪ c) Representative – of the process ▪ c) Poor sampling
across shifts and people.
▪ d) Contextual – collected with ▪ D) Lack of understanding of the
other relevant information that definitions
might explain process variability ▪ E) Inaccurate, insufficient or non-
calibrated measurement devices
BASELINE DATA
What is a Baseline Data?
Baseline data is a measurement of the current state of a process. It is
an assessment of the capability of the process to meet customer
requirements.
Examples:
▪ It takes an average of eight (8) hours to complete the Preventive
Maintenance of a machine.
▪ Customer claims average to sold $3,000 per month.
▪ Lead Time to deliver sample mold to clients exceeds due date by
an average of three (3) days
▪ Rejection of parts produced is at 10% vs 5% standard
Collecting Baseline Measurement

Select
measure(s)

Develop a data
collection plan

Go get the data!

Probability and Statistics

 Probability and Statistics is the language of data that are

converted into information
 Statistics is the art of collecting, classifying, presenting,
interpreting and analyzing raw data as well as making inferences
and conclusions about a population under study.
 Probability and Statistics provides modern decision makers a tool
arrive in a more confident business decisions.
Significance of Statistics

 Statistics provides a way for businesses to utilize data to be a basis

of intelligent business decisions.
 It also provides a way to predict possible events in the future.
 It provides a basis of assessing the performance and capability of
processes.
 It serves as a medium of common language for processes in an
organization.
Common Statistical Notations
∑
Summation

s
The Standard Deviation of sample Data

σ
The Standard Deviation of population Data

S2
The Variance of sample Data
Common Statistical Notations
σ2
The variance of population data

R
The range of data

Ř
The average range of data

k
Multi purpose notation i.e. # of subgroups, # of classes
Common Statistical Notations
|y|
The absolute value of some term

>, <
Greater than, less than

≥, ≤
Greater than or equal to, less than or equal to

X
An individual value, an observation
Common Statistical Notations
x1
A particular (1st) individual value

xi
For each, all, individual values

x̅
The mean, average of sample data

μ
The mean of population data
Common Statistical Notations
p
A proportion of sample data

P
A proportion of population data

n
Sample size

N
Population sample size
Measurement Scales

Nominal
Ordinal
Interval
Ratio
Continuous and Discrete Variables
Length of a part

Continuous Fill weight of a cereal box

Cycle Time of Production

Data
Number of Customer
Complaints
Discrete

Number of Defects
Measures of Central Tendency and Dispersion

Central Tendency Dispersion

MEAN – arithmetic RANGE – the difference

average of all the between the maximum
data values value and the minimum
value

MEDIAN- midpoint of STANDARD DEVIATION-

the data values distance of the values from
the mean

MODE – most VARIANCE – squared value of

frequently occurring the Standard Deviation
data value
Normal Distribution
The Normal Distribution is the most recognized distribution in statistics.

What are the characteristics of Normal Distribution?

Only random error is present
Process free of assignable cause
Process free of drifts and shifts
The Normal Curve
The normal curve is a smooth, symmetrical, bell-shaped curve, generated by the
density function.

It is the most useful continuous probability model as many naturally occurring

measurements such as heights, weights, etc. are approximately Normally
Distributed.
Parametric vs. Non-parametric
Parametric vs Nonparametric Test
BASIS FOR
PARAMETRIC TEST NONPARAMETRIC TEST
COMPARISON
Meaning A statistical test, in which A statistical test used in the
specific assumptions are made case of non-metric
about the population independent variables, is
parameter is known as called non-parametric test.
parametric test.
Basis of test statistic Distribution Arbitrary

Measurement level Interval or ratio Nominal or ordinal

Measure of central Mean Median

tendency
Information about Completely known Unavailable
population
Applicability Variables Variables and Attributes

Correlation test Pearson Spearman

Assessing Normality

 Most of the processes yield data values that follows a normal

distribution but some of the processes in business does not.
 It is important to determine the normality of the data set or
sample because statistical tools and techniques that will be
used will depend on this.
 Tools and techniques used for normally distributed data are
called parametric techniques, otherwise, they are called
nonparametric tools and techniques.
 This is why assessing the normality of such data set is
important.
Cap Removal Torque Workshop
A quality control engineer needs to ensure that the caps on
shampoo bottles are fastened correctly. If the caps are
fastened too loosely, they may fall off during shipping. If
they are fastened to tightly, they may be too difficult to
remove. The target torque value for fastening the caps is 18.
The engineer collects a random sample of 68 bottles and
tests the amount of torque that is needed to remove the
caps. You can use this data to demonstrate Graphical
Summary, Histogram, Dotplot, and other analyses that
compare distributions.
MEASUREMENT SYSTEM
ANALYSIS
(MSA)
Measurement System Analysis
 How do you know that the data you have used is accurate and
precise?
 How do you know if a measurement is a repeatable and
reproducible?

HOW WOULD WE KNOW THAT THE

DATA WE HAVE GATHERED REFLECTS A
RELIABLE SOURCE?
SOURCES OF VARIATION
Observed S Standard
Variation W Work Piece (Part)
I Instrument
P Person/Procedure
Unit-to-unit Measurement E Environment
(true) Variation System Error

Precision Accuracy

Reproducibilit
Repeatability Stability Bias Linearity
y
Precision vs Accuracy
Precision and Accuracy
Introduction to Measurement System Analysis

 Gage R&R is pre-requisite for data collection/analysis.

 Gage R&R study is a method to evaluate measurement
system to determine the amount of variation it
contributes to the total observed process variation.
 In Manufacturing industries, gages are evaluated for
repeatability (of reading when a component is measured
multiple times) and Operators/inspectors are evaluated
for reproducibility (of same readings when the component
will be asseis measured by different operations.
 In service industries, Appraiser will be assessed instead of
Gage.
Measurement System Analysis Tools
MSA tools help you evaluate accuracy and precision in your measurement
systems. MSA tools include:
 Gage R&R Study
 Gage Run Chart
 Gage Linearity and Bias Study
 Type 1 Gage Study
 Attribute Agreement Analysis
 Attribute Gage Study (AIAG Method)
Variable vs. Attribute MSA
Continuous
Scale

Variable Discrete Scale

Critical
Dimensions

MSA

Pass or Fail

Attribute Go or No Go

Customer
Service
Response
Gage R&R Studies
 Total GR&R, which can be broken into Repeatability and Reproducibility
 Part-to-Part, which is the variability in measurements across different parts.
 Ideally, very little of the variability should be due to repeatability and
reproducibility; instead, differences between parts (Part-to-Part) should account
for most of the variability. This would be shown by:
 A small %Contribution for the sources GR&R
 A large %Contribution for the source Part-to-Part
 The most important information is found in the %contribution, %Study Var,
%Tolerance, and %Process columns. These columns show the sources of variation.
Typically, the Total gage R&R should equal less than 30% of the study variation, and
less than 10% would be ideal.
Repeatability

 This is traditionally referred to as the “within appraiser” variability.

 Repeatability is the variation in measurements obtained with one
measurement instrument when used several times by one appraiser
while measuring the identical characteristic on the same part. This is
the inherent variation or capability of the equipment itself.
 Repeatability is commonly referred to as equipment variation of
measurement (EV)
 The best term for repeatability is within-system variation when the
conditions of measurement are fixed and defined – fixed part,
instrument, standard, method, operator, environment and assumptions.
Reproducibility
 This is traditionally referred to a the “between appraisers”
variability.
 Reproducibility is typically defined as the variation in the
average of the measurements made by the different appraisers
using at the same measuring instrument when measuring
identical characteristic on the same part.
 This is often true for manual instruments influenced by the skill
of the operator. It is not true, however, for measurement
processes where the operator is not a major source of variation.
 For tis reason, reproducibility is referred to as the average
variation between systems or between-conditions of
measurement.
Quick Hits for GR&R Problems
Repeatability Reproducibility
Calibrate or replace gage Ensure all have been calibrated and
that the standard measurement
method is being utilized
If only occurring with one Training and skill level of the
operator, re-train operators must be assessed.
Operators should be observed to
ensure that standard procedures are
followed.
Understand why the
operator/machine had problems
measuring some parts and not others
 PROCESS
CAPABILITY
ANALYSIS
What is Process Capability?
 Process capability compares the output of an in-control process to the
specification limits by using capability indices. The comparison is made by
forming the ratio of the spread between the process specifications (the
specification "width") to the spread of the process values, as measured by
6 process standard deviation units (the process "width").
𝑈𝑆𝐿 −𝐿𝑆𝐿
 𝐶𝑝 =
6σ
When to Use Process Capability?
MANUFACTURING SERVICES
Performed a new equipment as part of Performed on pilot process before
the qualification and approval process widespread roll out
Performed on existing process to Performed periodically to assure that
establish a baseline of current performance standards are maintained
performance or to highlight the need to reinforce
existing standards.

Performed on pilot process before Performed whenever outside or inside

widespread roll out actors change, to prove the process is
still capable of delivering high quality,
timely service.
Done periodically to monitor wear and
tear on equipment and deterioration
of a process for whatever reason
Definitions

 Cp= Process Capability. A simple and straightforward indicator of

process capability.
 Cpk= Process Capability Index. Adjustment of Cp for the effect of
non-centered distribution.
 Pp= Process Performance. A simple and straightforward indicator
of process performance.
 Ppk= Process Performance Index. Adjustment of Pp for the effect
of non-centered distribution.
Recommended Minimum Values

Process Two Sided One Sided

Specifications Specifications
Existing Processes 1.33 1.25
New Processes 1.50 1.45
Safety, Strength or 1.50 1.45
Critical parameter,
Existing Processes
Safety, Strength or 1.67 1.60
Critical parameter,
New Processes
Attribute Capability
 A software developer group is interested in estimating the
Capability of their output.
 A total of 20,000 software has been developed during the month
but 2,500 defects are found in those set.
 Results of the data set: Samples = 20,000 Defects = 2,500
1. DPU = 2,500 / 20,000 = 0.125
2. 0.875 (1-0.25) on Z Table = 1.15, therefore ZLT = 1.15 and ZST
= 2.65
3. We have Cpk = ZST / 3 = 2.65 / 3 =0.88
4. We have Ppk = ZLT / 3 = 1.15 / 3 = 0.38
Attribute Capability - Example
 A garments factory wants to determine the current process capability of
their processes for a technical visit preparation.
 A total of 10,000 baby dresses has been subjected for inspection and it has
been found out that 1,500 defects are present in that particular sampling
batch.
 Compute Cpk and Ppk.
 ANALYZE

 Conduct Process and Value Analysis

 Brainstorm Potential Root Causes Using Brainstorming, Cause and Effect
Diagram or matrices, 5 Why Analysis and Multi Vari Analysis
 Narrow the search with the use of Brainstorming and Prioritization Tool
such as Pareto Chart and Analysis
 Collect additional data to verify root causes thru Hypothesis Testing and
Correlation/Regression analysis
 Complete the Analyze Phase Toll Gate Review
Purpose of Analyze Phase
The purpose of the Analyze Phase is to pinpoint and verify causes affecting
the key inputs and output variables to project goals.
Key Steps in Analyze
1. Conduct Processes and Value Analysis
2. Brainstorm Potential Root Causes Using Brainstorming, Cause and Effect
Diagram or matrices, 5 Why Analysis and Multi Vari Analysis
3. Narrow the search with the use of Brainstorming and Prioritization Tool
such as Pareto Chart and Analysis
4. Collect additional data to verify root causes thru Hypothesis Testing and
Correlation/Regression Analysis to reveal significant relationship and/or
differences
5. Complete the Analyze Phase Toll Gate Review
What is Brainstorming?
 It is a conference technique by which a group attempts to find a
solution for a specific problem by amassing all the ideas spontaneously
contributed by its members.
 It can be defined as a means of getting a large number of ideas from a
group of people in a short time.
 This technique can be used in various steps in the problem solving
process in which the deferment of judgment and the quantity-breeds-
quality principles are used.
 The more alternative choices we have, the better our decision is.
Brainstorming Activity 1

Night and Day

Brainstorming Game 2
What Can You See?
 Brainstorming Exercise 3
Who’s Line Is It Anyway?
Brainstorming Exercise 3
Doodle
PROCESS MAPPING
Process Map
 A process map is a diagram that uses graphic symbols to depict the nature
and flow of the steps in a process. Another name for this this tool is “flow
diagram.”
 Shows customer and supplier boundaries and relationships
 Shows inputs, tasks/actions and outputs of a process
 It can be used for business processes as well as production processes.
Process Mapping Symbols
Process Map
Process Map Example
Process Map Types
Linear Process Map
A linear process map is a diagram that displays the sequence
of work steps that make up a process. This tool can help
identify rework and redundant or unnecessary steps within a
process.
Linear Process Map
Process Map Types
Deployment Process Map
A deployment process map shows the actual process flow
and identifies the people or groups involved at each step.
Horizontal lines define customer-supplier relationships. This
type of chart shows where the people or groups fit into the
process sequence, and how they relate to one another
throughout the process.
Deployment Process Map
Process Map Types

Opportunity Process Map

An opportunity process map - a variation of the basic linear
type- differentiates process activities that add value from
those that add cost only.
Opportunity Process
Map
PROCESS ANALYSIS
Look for Opportunities in the Process
With a process map, potential clues for possible causes of
your issue can be seen:

Some key pointers:

▪ Rework Loops
▪ Redundancies
▪ Bottlenecks
▪ Inspections and Decisions
▪ Hand offs
Rework Loops
 Rework adds cost and can give
clues to understanding root
causes
 Look for places where large
amounts of work move back in
the process to be fixed
 In transactional processes, many
of these steps frequently
become an accepted part of the
process
Redundancies

 Many people are surprised when

they map out a process to find
that some things happen twice in
the same process
 Look for limitations causing
multiple entry of the same data,
multiple handling of the same
materials.
Bottlenecks
 Places where your process is limited in the volume it can handle
 Often the result of specialization, task imbalance, or other restraints on
capacity
 The bottlenecks will limit the ability of the process to get more done
 The steps constrain your process
Hand offs
 Processes with more handoffs,
generally create opportunities
for something to be
mishandled
 Handoffs also create the
opportunity for missed
communication around
requirements that can lead to
additional inefficiency
 Review your process to make
sure there are no unnecessary
handoffs that could contribute
to problems
Inspections and Decisions

 Inspections and decisions can add

time to a process
 Processes with multiple decisions
and inspections can cause big
delays in a process
 Inspections are frequently added
over time due to a failure,
sometimes the inspections
continue to add cost long after
the problem has been solved
 As a wise person once said, “We
inspect because we expect a
defect”
CAUSE & EFFECT DIAGRAM
 What is a Cause & Effect Diagram
 A tool used to analyze cause and effect relationship. It is also called Ishikawa
diagram/analysis because Kaoru Ishikawa developed it in 1943. It is also called
fishbone diagram since it resembles one with the long spine and various
connecting branches.
 Use cause-and-effect diagrams to facilitate quality and process improvement
and quality planning. Use your teams engineering knowledge about the entire
process to create an effective cause-and-effect diagram. The best way to
ensure that you have complete engineering knowledge about the process is to
involve all team members in the problem-solving process. Thus, all team
members develop a more complete understanding of the factors that
contribute to the problem.
 The method for using this chart is to put the problem to be solved at the
head, then fill in the major branches. Man, machine, method and materials
are commonly identified causes.
Purpose of a Cause & Effect Diagram
 To help teams push beyond symptoms to uncover potential root
causes.
 To provide structure to cause identification effort
 To ensure that a balanced list of ideas have been generated during
brainstorming or that major possible causes are not over looked.
Cause & Effect Diagram Sample
Cause and Effect Diagram/Analysis Workshop
Your team owns a coffee shop. Your teams found out that the biggest
improvement opportunity is related to the prolonged lead time to deliver
the order of the customers. Using brainstorming and group discussion
techniques, uncover potential root causes why the lead time problem
exists. Use your creative and logical thinking to arrive at a reasonable
and logical root causes. Present and discuss your output to the mentor
and the class.

P.S. Think also of a name for your coffee shop and explain the reason behind the
name of your choice.
PARETO ANALYSIS
What is a Pareto Chart?
 A bar chart where the bars are arranged in descending order of
magnitude. The bars nay represent defect categories, locations,
departments, and so on. The magnitude (length) of the bars may
represent frequencies, percentages, costs or times.
 A problem-solving tool that involves ranking all potential problem areas
or sources of variation according to their contribution to cost or total
variation. Typically, 80% of the effects come from 20% of the possible
causes, so efforts are best spent in these “vital few” causes,
temporarily ignoring the “trivial many” causes.
 The name Pareto chart is derived from Italian economist Vilfredo Pareto
(1848-1923), who theorized that is certain economies the majority of
the wealth was held by a disproportionately small segment of the
population. Quality engineers have observed that defects usually follow
a similar Pareto distribution
Pareto Chart Analysis Workshop 1

 The company you work for manufactures metal bookcases. During

final inspection, a certain number of bookcases are rejected due
to scratches, chips, bends, or dents. You want to make a Pareto
chart to see which defect is causing most of your problems. You
enter the name of the defect each time it occurs in a single
worksheet column called Damage.
 Open the worksheet EXH_QC.MTW.
Pareto Chart Analysis Workshop 2

 Using Pareto Chart with Count Data

 Suppose you work for a company that manufactures motorcycles. You
hope to reduce quality costs arising from defective speedometers.
During inspection, a certain number of speedometers are rejected, and
the types of defects recorded. You enter the name of each defect into a
worksheet column called Defects, and the corresponding counts into a
column called Counts. You know that you can save the most money by
focusing on the defects responsible for most of the rejections. A Pareto
chart will help you identify which defects are causing most of your
problems.
Pareto Chart Analysis Workshop 3

 Using Pareto Chart with a By Variable

Imagine you work for a company that manufactures dolls. Lately, you
have noticed that an increasing number of dolls are being rejected at
final inspection due to scratches, peels, and smudges in their paint.
You want to see if a relationship exists between the type and number
of flaws, and the work shift producing the dolls.
SCATTER PLOT
What is a Scatter Plot
 A plot of one measured variable against another. Paired measurements
are taken on each item and plotted on a standard X-Y graph.
 It is a problem solving tool and is known as the correlation diagram
 It is used to uncover possible cause-and-effect relationships.
 It cannot prove that one variable causes another, but it does show how
a pair of variables is related and the strength of that relationship.
Statistical tests quantify the degree of correlation between the
variables.
 It is a tool used in regression modelling or predicting a close estimate
of the dependent variable given a value of the independent variable
by the factor of relationship present between the two.
Why Use a Scatter Plot?
 There is a need to display what happens to one variable when
another one changes.
 Performing a DOE
 Looking for a root cause to an out – of – control point during the
use of multivariate SPC
 Confirming relationships identified in a cause and effect diagram.
 Performing data analysis during the Product, Process and Problem
Analysis
 y y
How to Interpret
a Scatter Plot
(a) Perfect positive x (b) Positive x
correlation: correlation:
r = +1 0<r<1

y y

(c) No correlation: x (d) Perfect negative x

r=0 correlation:
r = -1
© 2006 Prentice Hall, Inc. 4 – 177
Scatter Plot Analysis Workshop 1
 SIMPLE
 You are interested in how well your company's camera batteries are
meeting customers' needs. Market research shows that customers become
annoyed if they have to wait longer than 5.25 seconds between flashes.
 You collect a sample of batteries that have been in use for varying
amounts of time and measure the voltage remaining in each battery
immediately after a flash (VoltsAfter), as well as the length of time
required for the battery to be able to flash again (flash recovery time,
FlashRecov). Create a scatterplot to examine the results. Include a
reference line at the critical flash recovery time of 5.25 seconds.
 Open the worksheet BATTERIES.MTW.
Scatter Plot Analysis Workshop 2

 WITH GROUPS
 You are interested in how well a new formulation of your
company's camera batteries is meeting customers' needs. Market
research shows that customers become annoyed if they have to
wait longer than 5.25 seconds between flashes.
 You collect samples of batteries (both old and new formulations)
that have been in use for varying amounts of time. You then
measure the voltage remaining in each battery immediately after
a flash (VoltsAfter), as well as the length of time required for the
battery to be able to flash again (flash recovery time, FlashRecov).
Create a scatterplot, grouped by formulation, to examine the
results. Include a reference line at the critical flash recovery time
of 5.25 seconds.
Scatter Plot Analysis Workshop 3

 WITH REGRESSION LINE

 You are interested in how well your company's camera batteries are
meeting customers' needs. Market research shows that customers
become annoyed if they have to wait longer than 5.25 seconds between
flashes.
 You collect a sample of batteries that have been in use for varying
amounts of time and measure the voltage remaining in each battery
immediately after a flash (VoltsAfter), as well as the length of time
required for the battery to be able to flash again (flash recovery time,
FlashRecov). Create a scatterplot to examine the results. Include a
regression line , as well as a reference line at the critical flash recovery
time of 5.25 seconds.
Scatter Plot Analysis Workshop 4

 WITH REGRESSION AND GROUPS

 You are interested in how well a new formulation of your company's camera
batteries is meeting customers' needs. Market research shows that customers
become annoyed if they have to wait longer than 5.25 seconds between
flashes.
 You collect samples of batteries (both old and new formulations) that have
been in use for varying amounts of time. You then measure the voltage
remaining in each battery immediately after a flash (VoltsAfter), as well as
the length of time required for the battery to be able to flash again (flash
recovery time, FlashRecov). Create a scatterplot, grouped by formulation, to
examine the results. Include regression lines for each group, as well as a
reference line at the critical flash recovery time of 5.25 seconds.
Scatter Plot Analysis Workshop 5

 WITH CONNECT LINES AND DATA LABELS

 You are interested in the winning times for the men's 1500-meter
run in the Olympics from 1900 to 2000. Because the Olympic
Games were canceled in 1916 (WWI), and in 1940 and 1944 (WWII),
you have irregularly-spaced time intervals. Thus, rather than use
Graph > Time Series Plot, you should create a scatterplot with
connect line to illustrate these data. Include custom titles,
footnotes, and data labels to clarify what is being shown in the
graph.
 Open the worksheet TRACK1500.MTW.
Scatter Plot Analysis Workshop 6

 WITH CONNETC LINES AND GROUPS

 Your company manufactures frozen foods and you need to
determine the optimal time and temperature for reheating a new
frozen entree. You reheat samples at a number of different times
and temperatures, then have trained judges rate each for overall
quality on a scale of 0 (not enjoyable) - 10 (most enjoyable).
Create a scatterplot with connect lines grouped by temperature to
examine the average quality scores.
 Open the worksheet REHEAT.MTW.
CORRELATION
What is Correlation?
 Correlation is a term used to indicate whether there is a
relationship between the values of different measurements.
 A positive correlation mean that a higher values of one
measurement are associated with higher values of the order
measurement (both rise together).
 A negative correlation means that higher values of one
measurement are associated with lower values of another (as one
goes up, the other goes down).
 Correlation itself does not imply a cause-and-effect relationship.
 Correlation can be viewed as association rather than strictly saying
causation.
Correlation Statistics

 Correlation coefficients are statistics that indicate the strength of

the relationship between the variables under study.
 These coefficients are used to determine whether the relationship
is statistically significant (the likelihood that certain values of one
variable are associated with certain values of the other variable).
 The Pearson Correlation Coefficient (r) reflects the strength and
the direction of the relationship.
 The coefficient of determination (r2) tells us the percentage of
variation in Y that is attributable to the independent variable X ( r
can be positive or negative; r2 is always positive).
Correlation Workshop 1

 We have verbal and math SAT scores and first-year college grade-point
averages for 200 students and we wish to investigate the relatedness of these
variables. We use correlation with the default choice for displaying p-values.
Open the worksheet GRADES.MTW.
REGRESSION
What is Regression Analysis?
Consequently, when there is an evident correlation coefficient calculated, we
can use the x variable to predict the possible value of the y variable. This is with
the use of the regression analysis. The term regression can be tracked with the
works of Sir Francis Galton. He noted that the sons of very tall fathers tended to
be tall, but not quite as tall as their fathers. Also, sons of very short fathers
tended to be short, but not quite as short as their fathers. He called this
tendency, regression.
Regression Workshop

 As part of a test of solar energy, you measure the total heat flux
from homes. You wish to examine whether total heat flux
(HeatFlux) can be predicted by the position of the focal points in
the east, south, and north directions. You found, using best
subsets regression, that the best two-predictor model included the
variables North and South and the best three-predictor added the
variable East. You evaluate the three-predictor model using
multiple regression.
 Open the worksheet EXH_REGR.MTW.
Analyze Phase Challenges
 Spending the time needed to explore root causes
 Getting caught up in analysis paralysis
 Jumping to solution without confirming root cause hypothesis
 Collecting the right data to confirm or validate hypothesis
IMPROVE
Purpose of Improve Phase
The purpose of the improve phase is to learn from pilots of the selected
solution(s) and execute full scale implementation.
Key Steps in Improve
1. Develop potential solutions (Creating Flow, Poka Yoke, Visual
Management, 5S, etc.)
2. Evaluate, select and optimize best solution. (Criteria Based Matrix,
Economic Valuations, etc.)
3. Develop and implement pilot solution.
4. Confirm attainment of project goals.
5. Develop and execute full scale implementation plan.
6. Complete the Improve Phase Toll Gate Review.
Pillars of Lean

Define
Value

Map the
Pursuit of Value
Perfection Stream
Lean
Principles

Establish Create
Pull Flow
8W APPROACH
8W Approach
Defects

Extra
Over
Processi
Prod’n
ng

Waiting
Motion

Inventory Non-
utilized
Talent
Transpo
 ITEMS

8W Approach Entry errors that cause the wrong actions like shipping too many or too few to the
wrong address

Workshop Inefficient “flow”

Reply all emails when it pertains to only a few
Determine what kind of Risk of obsolescence
waste is depicted on Delays due to needing a signature
each item.
Unnecessary completion of templates, forms and documents
Provide the letters D-O- Opening up multiple software application
W-N-T-I-M-E as your
Lack of cross training
answer for each item.
Fixing paperwork that is not completely filled in or tracking down the right person to
get the information
Carrying large quantities in and out of storage facilities
‘Pack rat” mentality
Printing 20 copies of report that only three people will look to
Not utilizing employee’s suggestion
Clicking to get information
Rework loops or work around
Excessive cycle time between process steps.
 ITEMS Answer
Entry errors that cause the wrong actions like shipping too many or too few to the D
8W Approach wrong address
Inefficient “flow” T
Workshop Reply all emails when it pertains to only a few O
Risk of obsolescence I
Delays due to needing a signature W
Unnecessary completion of templates, forms and documents E
Opening up multiple software application M
Lack of cross training N
Fixing paperwork that is not completely filled in or tracking down the right person to D
get the information
Carrying large quantities in and out of storage facilities T
‘Pack rat” mentality I
Printing 20 copies of report that only three people will look to O
Not utilizing employee’s suggestion N
Clicking to get information M
Rework loops or work around E
Excessive cycle time between process steps. W
 FLOW
CREATION
What is a Flow?

 The process flow should not slow because of how the process is
designed. The customer should be able to move through the
process and not get stuck.
 What happens when something blocks the flow?
 What happens when there is a smooth flow?
How do we create flow?

 Batch Size Reduction

Batching seems efficient. In reality, Batching can sub-optimize the
entire process, increasing delays in the process.

Administrative example of Batching work:

Monday: Order office supplies
Tuesday: Process expense reports
Wednesday: Authorize purchase orders
Thursday: Place vendor orders for group A
Friday: Place vendor orders for group B

Goal: How can Batching be reduced?

 Cross Training
Having multiple people trained in many functions creates flexibility
to get jobs done efficiently and effectively.
Here are some of the general advantages of Cross Training:
▪ Increased flexibility and versatility
▪ Appreciated “intellectual capital”
▪ Improved individual efficiency.
▪ Increased standardization of jobs.
▪ Heightened morale
 Parallel Processing
• Serial Processing – A process is designed to be linear or
sequential.

• Parallel Processing – A process with steps designed to happen at

the same time. These steps are happening simultaneously.
 Standard Work
• Make common procedures and processes easy to perform
• Create effective visual aids, point of use checklists, templates,
job instructions, etc.
• The goal is not mindless conformity, but saving thought and
energy for more important work that people must do.
VISUAL FACTORY
Visual Factory
The intent of a visual factory is that the whole workplace is set up
with signs, labels, color coded markings, etc. such that anyone
unfamiliar with the process can in a matter of minutes know what is
going on, understand the process and know what is being done
correctly (+) and what is out of place (-)
1. A Visual Display relating information and data to employees in
the area. Examples are Monthly Revenues or graphics depict a
certain type of quality issues that the group should be aware
of.
2. Visual Control is intended to actually control or guide the
action of a group. Examples are stop signs, handicap parking,
no smoking, etc.
Examples of Visual Factory
 Color-coded pipes and wires
 Painted floor areas for good stock, scrap, trash, etc.
 Shadow Boards for parts and tools
 Indicator lights
 Workgroup display boards
 Production status boards
 Audio Signals in the factory

*ANDON LIGHT= PAG MAT DEFECT SA LINYA

Examples of Visual Factory
Examples of Visual Factory
6S SYSTEM
6S System

SHINE SAFETY

SET IN ORDER STANDARDIZE

SORT 6S SUSTAIN
6S System
• SORT – Involves removal and/or disposal of items that are not needed at
a workstation.
• SET IN ORDER – Having a place for everything and everything in its
place.
• SHINE – Involves cleaning the workstation and equipment. Clean
workstation and equipment allows for easy inspection.
• SAFETY – A neat and clean environment will lessen the chances of an
accident occurring.
• STANDARDIZE – Involves rules to maintain sorting, setting in order,
scrubbing and safety standards.
• SUSTAIN – Involves following the 6S System and may require training
from time to time as well as audit.
SORT
SET IN ORDER/STRAIGHTEN
SHINE/SWEEP
STANDARDIZE
REGRESSION &
OPTIMIZATION
How Can the Regression Equation Help
The orchard manager has been keeping track of the weight of peaches on a day
by day basis. He wants to know if the duration of peaches on the tree affects
their weight and what might be the optimal days on tree before picking them.

NUMBER DAYS ON WEIGHT NUMBER DAYS ON WEIGHT

TREE (OUNCES) TREE (OUNCES)
1 75 4.5 11 83 5.5
2 76 4.5 12 84 5.4
3 77 4.4 13 85 5.5
4 78 4.6 14 85 5.5
5 79 5.0 15 86 5.6
6 80 4.8 16 87 5.7
7 80 4.9 17 88 5.8
8 81 5.1 18 89 5.8
9 82 5.2 19 90 6.0
10 82 5.2 20 90 6.1
Correlation and Significance Checking
Fitted Line Plot
Weight (Ounces) = - 3.847 + 0.1 099 Days on Tree
6.25
S 0.1 06052
R-Sq 96.0%
6.00 R-Sq(adj) 95.8%

5.75
Weight (Ounces)

5.50

5.25

5.00

4.75

4.50

75.0 77.5 80.0 82.5 85.0 87.5 90.0

Days on Tree

What can you say about the relationship of the peach weight
and its duration on tree?
Validate Predictive Model Significance
How to Optimize the Response (Y)
CONTROL
Purpose of Control Phase
The purpose of the Control Phase is to complete the project work and hand off
improved process to process owners, with procedures for maintaining gains.
Key Steps in Control
1. Launch Implementation
2. Develop Standard Procedures to Lock Up Gains
3. Develop a Process Control Plan
4. Develop a Statistical Process Control Monitoring Plan
5. Finalize Project
6. Validate Performance and Financial Results
7. Complete the Improve Phase Toll Gate Review
What is a Process Control Plan
 Ensures that controls and measurements are in place to maintain long term
success
 Defines what the key process measures are
 Helps clearly identify where process measures will take place by whom and
how often
 Helps to ensure that gains will be maintained
 Consist of:
 Map
 Monitoring Plan
Control Plan
Control Plan
CONTROL CHARTS
What is a Control Chart?
• A statistical control chart is a line graph of the measurements of a product or
process over time that has statistically based control limits placed on it.
• The points that are plotted on a control chart may be the actual
measurements of a part characteristic or summary statistics from samples
(subgroups) of parts taken as they are produced over time.
• A control chart has control limits based upon process variation and a
centerline representing the average of all the measurements used to
construct the control chart.
• Summary statistics often plotted include the subgroup average, subgroup
range, subgroup standard deviation, percent defective, average number of
defects per unit, and so on.
• Key characteristics are examples of process output that can be monitored by
statistical control charts.
Control Chart Elements
Tests for Special Causes of Variation
Tests for Special Causes of Variation
Which Chart Should be Used?

Continuous Data Type Attribute

Data What are

Collected in you
Subgroups counting?
No Yes Defective Defects per
Items Unit

Subgroup
Size

Subgroup Subgroup size

Size 8 or greater than
less 8

I-MR Xbar-R Xbar-S p - Chart U Chart

Chart Chart Chart
I-MR Chart
The I-MR chart is a combined chart consisting of:
▪ An individuals (I) chart, which plots the values of each individual observation,
and provides a means to assess process center.
▪ A Moving Range (MR) chart, which plots the range calculated from artificial
subgroups created from successive observations and provides a means to
assess process variation.
▪ When MR chart is out of control, the control limits on the I chart may be
inaccurate and may not correctly signal an out-of-control condition. In this
case, the lack of control will be due to unstable variation rather than actual
changes in the process center.
▪ When the MR chart is in control, you can be sure that an out-of-control I chart
is due to changes in the process center
I-MR Chart Sample
A liquid detergent company wants to assess whether or not its
process is in control. The liquid detergent is made in batches by
mixing together a number of ingredients. The quality
characteristic of interest is the pH value for each batch.
Measurements of the pH value for 25 consecutives batches were
taken.
Because the liquid detergent is created in a batch process and
only one measurement is taken for each batch, it is not
appropriate to place the data in subgroups. Instead, the liquid
detergent data should be analyzed using an Individuals (I) control
chart, which considers each measurement to be independent
observation.
DATA: Detergent
X Bar and R Chart
 Use X bar and R chart to draw a control chart for subgroup means
(X bar chart) and a control chart for subgroup ranges (R chart) on
one page. Interpreting both charts together allows you to track
both process center and process variation and detect the presence
of special causes.
 The R chart must be in control in order to interpret the chart
because the control limits are calculated considering both process
variation and center.
 When the R chart is not in control, the control limits on the X bar
chart will be inaccurate and may falsely indicate an out of control
condition. In this case, the lack of control will be due to unstable
variation rather than actual changes in the process center.
 When the R chart is in control, you can be sure that an out-of-
control X bar chart is due to changes in the process center.
X Bar and R Chart Sample

An automobile assembly plant collected camshaft length

measurements to assess the quality of the process. Five camshafts
were measured from each of four shifts daily for five days. The five
samples that compromise each subgroup were selected within a short
period of time to minimize variation from one camshaft to the next.

DATA: Camshaft
X Bar and S Chart
 Use X bar and S charts to draw a control chart for subgroup means
(X bar chart) and a control chart for subgroup standard deviations
(S chart) on one page. Interpreting both charts together allows you
to track both process center and process variation and detect the
presence of special causes. The S chart must be in control in order
to interpret the chart because the control limits are calculated
considering both process spread and center.
 If the S chart is out of control, then the control limits on the X bar
chart will be inaccurate and may falsely indicate an out-of-control
condition. In this case, the lack of control will be due to unstable
variation rather than actual changes in the process center.
 When the S chart is in control, you can be sure that an out-of-
control X bar chart is due to changes in the process center.
X Bar and S Chart Sample

A canning company wants to assess whether or not its can-filling

process is in-control. Fifteen subgroups of ten cans each were
collected at fifteen-minute interval across two shifts for a single
day’s production.
To minimize the within the within-subgroup (can-to-can) variation the
ten samples for a given subgroup were gathered in a short period of
time. Minimizing this variation is important because within-subgroup
variation is used to establish the control limits for the X-bar-S Chart.

DATA: Canning
P Chart
 Use P chart to study the proportion of defectives in each sample
and determine whether or not the process is in control.
 An in-control process exhibits only random variation in the
proportion of defectives per sample.
 An out-of-control process exhibits nonrandom variation in the
proportion of defectives per sample, which may be due to the
presence of special causes.
 A defective is a product or service in which a nonconformity (or
flaw) renders the product or service unusable. Examples of
defectives include broken light bulbs, late deliveries, unanswered
calls, and blown fuses.
 Use P charts when your sample sizes vary.
P Chart Sample

A telephone service center wants to assess whether its call answering

system is in control. The total number of incoming calls and number
of unanswered calls are recorded for 21 days. Each unanswered call is
a defective. Because the number of incoming calls varies daily, a P
chart should be used to analyze the data.

DATA: Telephone
U Chart
 Use U charts to assess the number of defects per unit of measurement and
determine whether or not the process is in control.
 An in control process exhibits only random variation in the number of defects
per unit due to the presence of special causes.
 An out-of-control process exhibits unusual variation in the number of defects
per unit due to the presence of special causes.
 Defects are nonconformities (or flaws) in part of a product or service that do
not render the product or service unusable. Examples of defects include air
bubbles in a sheet of glass, weaknesses in insulated wire, or blemishes in
cloth.
 Use U chart when your sample sizes vary.
U Chart Sample

 A stenographic company wants to assess the quality of its

transcription service. They sampled 25 samples (sets of pages) and
counted the number of typographical errors for each sample.
Differently sized sets of pages were sampled. Typographical errors
are defect. Because the samples are not the same size, a U chart
was used to analyze the data.

DATA: Transcription