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TLC, SSEO 1.5 22002

Thomas A. Little, Ph.D.
President, Thomas A. Little Consulting

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TLC, SSEO 1.5 22002
Audience
Presentation is designed for those Executives
and Managers who are considering
implementing Six Sigma and want to
understand its core concepts and benefits.
Provides an overview and orientation of six
sigma methodologies and organizational
requirements. The Executive Overview is
presented prior to six sigma implementation,
Champion and Black Belt training.

382 Stanwick Street
Brentwood, CA 94513
1-925-285-1847
drlittle@dr-tom.com
www.dr-tom.com
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TLC, SSEO 1.5 22002
Objectives
As a result of attending this course the participant will
be able to:

Describe the Six Sigma Breakthrough strategy
Understand the Champions role in the Six Sigma Initiative
Relate the roles and responsibilities of the Champion, Black Belt,
Green Belt and Team Members
Identify projects with high probability for success
Understand the DMAIC methodology and how it applies to
improvement projects
Establish and utilize dashboard metrics
Assist in project management and project goal completion


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TLC, SSEO 1.5 22002
Presentation Outline
Section I Six Sigma Introduction
Section II Management and Organizational Infrastructure
for Six Sigma
Section III DMAIC Breakthrough Methodology
Section IV Implementation Strategy

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TLC, SSEO 1.5 22002
Section I
Section I Six Sigma Introduction
What is Six Sigma?
Three elements of Six Sigma
DMAIC roadmap
Expected benefits of Six Sigma
Corporate results of Six Sigma


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TLC, SSEO 1.5 22002
- 6s -5s -4s -3 s -2s -1s 0 +1s +2s +3s +4s +5s +6s
6s to LSL 6s to USL
Cp=2 Cpk=1.5
Cp=2 Cpk=1.5
Cp=Cpk = 2
1.5 s
LSL
12.5% 12.5%
75%

3.4 DPMO

3.4 DPMO
USL
Technical Definition of Six Sigma
Technical Definition (Motorola)
Evolution to:
A Management driven, scientific methodology for product and
process improvement which creates breakthroughs in financial
performance and Customer satisfaction
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TLC, SSEO 1.5 22002
What is Six-Sigma?
Management mandated and directed improvement
program focused on breakthroughs in financial
performance and customer satisfaction
Uses Champions, Black Belts and Green Belts to
facilitate change
Focused on core business and Customer needs
A systematic method for process and product
improvement
A Greek symbol for measuring performance
variation
A metric for evaluating performance quality
A standard of excellence (3.4 defects per million
opportunities)

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TLC, SSEO 1.5 22002
Customer Satisfaction + Efficient Systems =
Improved Profitability
Two types of projects to improve financial performance:
Increase Revenue Grow the Business
Improve Customer satisfaction, sales, capacity and market position
Decrease the Cost of Goods Sold
Reduce variation and defects
Improve yields
Understand root cause of issues and eliminate the source of problems
Automate process workflow
Improve process performance and reduce waste using lean principles
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TLC, SSEO 1.5 22002
Center
Process
Reduce
Spread
Off-Target Too Much Variation
Centered
On-Target
The objective is to understand customer
requirements and reduce
process variation and defects
Reduce Process Variation & Defect Rates
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TLC, SSEO 1.5 22002
Breakthrough and Continuous Improvement
1 2 3 4 5
Breakthrough Strategy
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TLC, SSEO 1.5 22002
Three Emphasis Areas for Six Sigma
Focused on product design excellence, design for manufacturability,
Customer satisfaction and cost reduction within all components of the
development and new product introduction process.

Focused on operational excellence, Customer satisfaction and cost
reduction within all components of the operation. Areas of focus
include Sales, HR, Finance, Materials, etc.

Focused on product production excellence, variation and defect
reduction, lean production techniques, Customer satisfaction and
cost reduction within all components of the production and delivery
process.


Six Sigma touches on all aspects
of the Business Enterprise
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TLC, SSEO 1.5 22002
Past Improvement Activity Failure Modes
Unsuccessful Projects
No clear Management mandate
No roadmap for the project
not sure where we are going
No dedicated resources
No Management and performance review
No ability to measure performance and
examine effectiveness not sure if we
accomplished anything
No financial ROI during project definition
and measurement at completion
No clear answer as to why are we doing
this project?
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TLC, SSEO 1.5 22002
Select and work on the most important
problems and projects to the business
and Customer
Assure those projects impact customer
satisfaction and financial performance
Allocate the time to get the work done
Have your best people work on them
Provide those individuals with all the
training, tools, and resources they need
to make the performance breakthrough
Provide Management direction, support
and routine review of performance
Require a well thought out, objective and
data driven solution
Verify the dollar savings of your efforts
Sustain the benefits of the solution over
time
What Makes Six Sigma Work?
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TLC, SSEO 1.5 22002
Six Sigma 3 Critical Elements
Defining and using business objectives and metrics that
focus our attention on performance and defects that are most
important to the customer and have the greatest potential for
impacting the bottom line
Dedicated
resources and
focused
infrastructure,
trained in the
use of the 6
Sigma problem
solving and
process
improvement
methodology
Systematic
Approach to
improving
performance
and reducing
defects which
are important to
the customer
(qualitative &
statistical)
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TLC, SSEO 1.5 22002
Strategic Business and Quality Metrics
Management objectives
and dashboard forms the
core of the strategic
Business & Quality
Metrics and is flowed
down to other
departments and process
areas to provide leading
and lagging indicators of
performance
CSI, Sales, delivery times, cost per
unit, Yield, DPU, DPMO, customer
response times, Web hit rates,
Rework/scrap rates, etc.
(Critical Business Elements)
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TLC, SSEO 1.5 22002
Level 1
Processes
Level 2
Processes
Level 3
Processes
Level 4
Processes
Executive
Dashboard
Hierarchy of Operational Dashboards
Director
Level
Manager
Level
Engineering
Level
Operator
Level
Can we see measurable
progress in our key
business critical metrics?
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TLC, SSEO 1.5 22002
Six Sigma DMAIC Road Map

Define
Identify Project, Champion and Project Owner
Determine Customer Requirements and CTQs
Define Problem, Objective, Goals and Benefits
Define Stakeholder/Resource Analysis
Map the Process
Develop Project Plan
Measure
Determine Critical Xs and Ys
Determine Operational Definitions
Establish Performance Standards
Develop Data Collection and Sampling Plan
Validate the Measurements
Measurement Systems Analysis
Determine Process Capability and Baseline
Analyze
Benchmark the Process or Product
Establish Causal Relationships Using Data
Analysis of the Process Map
Determine Root Cause(s) Using Data
Improve
Design of Experiments
Develop Solution Alternatives
Assess Risks and Benefits of Solution Alternatives
Validate Solution using a Pilot
Implement Solution
Determine Solution Effectiveness using Data
Control
Statistical Process Control
Determine Needed Controls (measurement, design, etc.)
Implement and Validate Controls
Develop Transfer Plan
Realize Benefits of Implementing Solution
Close Project and Communicate Results


Key Analytical Tools
Process Mapping and
Modeling

Measurement Systems
Analysis & Process
Capability

Statistical Tests, Modeling
& Root Cause Analysis

Brainstorming
Design of Experiments,
FMEA, & Validation

Statistical Process Control
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TLC, SSEO 1.5 22002
Process Flow for achieving 70%+ Improvement
Champion



Black Belt



Process or
Product
Select project that is
considered critical to
operational success
Form team and
follow DMAIC for
project management
Review
performance
and assure
results
Understand root
cause of problem
Develop alternative
solutions and
complete benefit
and risk assessment
Review and
approve
solutions
Validate
Solution
Implement and
standardize
process changes
Authorize
process
change
Determine
financial
benefit
Communicate
and celebrate
results
For a breakthrough to occur everything is on the table
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TLC, SSEO 1.5 22002
Six Sigma Results
Improved Customer satisfaction
Assure products and services meet customer
requirements
Improved quality, efficiency and cost of goods sold
Waste, defect and variation reduction
Financial savings (hard and soft)
Self-sustaining infrastructure
Defined roles and responsibilities
Empower Champions, Black Belts and all employees to
make meaningful improvements in performance
Communication
Commonality
Language, training materials, tools & software
Methodology
Expectations
Solutions
Financial tracking (establish, maintain metrics)
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"We expect Six Sigma to elevate our company to an entirely new
level of operational performance, delivering $1.5 billion in EBIT
cumulatively by 2003 from the combined impact of revenue growth,
cost reductions and asset utilization."
- Dow 1999 Annual Report http://www.dow.com/financial/99ann/letter03.htm


"We achieved $600 million in Six Sigma cost savings in 1999, but
cost savings are only one part of the story. Delighting customers and
accelerating growth completes the picture. When we are more
efficient and improve work flow throughout every function in the
company, we provide tremendous added value to our customers
through higher quality solutions that are more competitively priced,
delivered on time and invoiced correctly. That makes us a more
desirable business partner."
- Honeywell 1999 Annual Report http://www-a.honeywell.com/investor/ar99_intro_smarter.html

Honeywell & DOW Results
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TLC, SSEO 1.5 22002
"Six Sigma implementation continues to gain momentum. At the end
of the year 2000, there were about 1,100 trained Black Belts and
over 3,400 active projects. The potential pretax benefit from active
projects was $700 million."
- DuPont Fourth Quarter and Full Year 2000 Earnings Report http://www.dupont.com/corp/whats-new/releases/01/010124.html

GE & DuPont Results

"The Six Sigma initiative is in its fifth year its fifth trip through the
operating system. From a standing start in 1996, with no financial
benefit to the Company, it has flourished to the point where it
produced more than $2 billion in benefits in 1999, with much more to
come this decade."
- GE 1999 Annual Report http://www.ge.com/annual99/letter/letter_three.html

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TLC, SSEO 1.5 22002
Section II
Section II Management Infrastructure for Six Sigma
Site Champion and Executive Staff
Hands on Champions
Master Black Belt
Black Belts / Green Belts
All Employees

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Interrelationship Digraph of Six Sigma Infrastructure
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TLC, SSEO 1.5 22002
Site Champion and Executive Staff
Functions
Set the vision
Create the mandate for improvement
Initiate and fund the activity
Establish and maintain the reporting structure
Responsibilities (10%+ of time)
Identify Champions in each functional area
Monthly review of projects by Champion
Measure Champion results
Training
4 hour Executive Overview
2 day Champion Training
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TLC, SSEO 1.5 22002
Hands-On Champion
Functions
Communicate the vision
Create the mandate for improvement
Provide direction and remove barriers
Achieve financial results and communicate
success
Responsibilities (10%+ of time)
Identify Black Belts and Green Belts
Identify and approve all Six Sigma projects
Biweekly review of all projects
Measure Black Belt performance
Training
2 day Champion Training
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TLC, SSEO 1.5 22002
Master Black Belt
Functions
Provide technical expertise on Six Sigma and Lean
methodology to Black Belts and Green Belts
Work in support of the Black Belt and Champion
Assist in education and training activities
Responsibilities (100% of time)
Work daily with team members, Black Belts and
Champions
Participate in the review of projects
Monitor all Six Sigma projects
Training
15 day Black Belt Training, 2 years minimum as a
Black Belt and a Masters Degree in a related field
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TLC, SSEO 1.5 22002
Black Belts and Green Belts
Functions
Black Belts 100% dedicated for 2 years to process
improvement, Green Belts 20%
Work on improvement projects with other Green
Belts and Team Members
Achieve financial results for each project Goal of
$350K+
Responsibilities (100 20%+of time)
Use the DMAIC methodology to create
breakthroughs in performance
Report progress to the Champion
Hold team meetings and provide excellent project
management
Work with the Master Black Belt
Training
15 day Black Belt Training
5 day Green Belt Training
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TLC, SSEO 1.5 22002
All Employees
Functions
Work to achieve excellence in daily work
Participate in Six Sigma projects
Support team activities
Identify opportunities for improvement
Responsibilities (5-10%+of time)
Participate in Six Sigma activities as
requested
Complete action items as assigned by the
team
Attend team meetings
Training
1 day Six Sigma Employee training
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TLC, SSEO 1.5 22002
Section III

Section III DMAIC Breakthrough Methodology
Define
Measure
Analyze
Improve
Control
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TLC, SSEO 1.5 22002
DMAIC Process Improvement Methodology
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TLC, SSEO 1.5 22002
DMAIC Process
Metrics (Ys) linked to
CTQs
Define the Problem
Project Objective
Project Goal
PROCESS
X
1
X
2
X
3
X
4
Y
1
Y
2
Y
3
Establish Controls on the critical Xs so
the improvements will be maintained
Identify ways
to improve
the process
and validate
the solution
Measure and Analyze
data and process
performance to determine
the critical variables and
root cause of the problem
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Six Sigma DMAIC Define

Define Activities
Identify Project, Champion and Project Owner
Determine Customer Requirements and CTQs
Define Problem, Objective, Goals and Benefits
Define Stakeholder/Resource Analysis
Map the Process
Develop Project Plan

Define Quality Tools
Project Charter and Plan
Effort/Impact Analysis
Process Mapping
Tree Diagram



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Define Flow
Effort/Impact
Analysis
VOC,
Examine
Candidate
Projects
Complete
SIPOC and
Process Map
Develop and
Approve Project
Charter
Define Customer
CTQs
Effort / Impact Analysis
0
1
2
3
4
5
6
7
8
9
10
0 2 4 6 8 10 12
Effort
I m
p
a
c
t
Impact
BB Projects GB Projects
Voice of
The Customer
Voice of Voice of
The Customer The Customer
Product
arrives on-time
Product Product
arrives on arrives on- -time time
Response
(Y)
Response Response
(Y) (Y)
Operational
Definition
Operational Operational
Definition Definition
Specification
Limit(s)
Specification Specification
Limit(s) Limit(s)
Error Rate Error Rate Error Rate
Target Target Target
CTQ(s)
SIX SIGMA
Project Charter
Resource Requirements General Information Review Schedule
Project No: Location: Activity Date
Project Name: Business Start
Project Leader: Segment: D
GB/BB: Business M
Master BB: Objective: A
H/O Champion: Customer I
Team Members: Name Function %Time Initials CTQ(s): C
Current Close
Process
Capability: Sigma, Cpk, DPMO, Cycle-time, etc.
Date:
Project Definition
Project Problem Statement:
Project Objective Statement:
Project Scope/Limitations:
Project Goals and Targets:
Project Plan:
See page 2 of the project charter. Project Plan and Gantt Chart
Expected Benefits: Time frame:
Hard Dollar Savings:
Soft Dollar Savings:
Strategic:
Other Benefits:
Stakeholder Approval
Hands On Champion: Master Black Belt:
Name: Name:
Signature: Signature:
Functional Manager: Black / Green Belt:
Name: Name:
Signature: Signature:
Other: Other:
Name: Name:
Signature: Signature:
Date:
Suppliers Input Process (High Level) Output Customers
1 1 Start Point: 1 1
2 2
3 2 1
2 1 2
2 3 1
3 1 2
3 1 2 4 1
2 3 2
3 4 5 1
4 1 5 2
2 6 6 1
3 7 2
Add additional rows where needed 8
9
10
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End Point:
Thomas A. Little Consulting 2002
Who are the customers for
our product or service?
What are their
requirements for
performance
Determine the start and end points of the process
associated with the problem and the major steps
in the process.
What is the most
appropriate end point
for the process? What
product or service does
the process deliver to
the customer?
Who are the suppliers for our product
or service? How capable are they in
meeting our process requirements?
What must my
suppliers provide to
my process to meet
my needs?
Operation or Activity
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TLC, SSEO 1.5 22002
Voice of the Customer (VOC)
VOC is often full of emotions.
We need to restate customer
statements into fact based,
performance requirements
that we need to focus on

Of course Customers
expect perfection
DMAIC
Methodology
Define
Why dont you guys learn how to
meet a schedule?
Your service quality to poor
When will you learn how to provide
service and a Customer first attitude?
Why dont you tell us when there is a
problem?
I sent out e-mail after e-mail with no
response!
Why do you try and make your
customers responsible for your
quality problems?
Your RMA frequency is unacceptable

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Performance to
Schedule
Deviation from schedule in
completed units
< 3.4 DPMO
Customer
Needs
Product
arrives on-time
Response
(Y)
Measure
Specification
Limit(s)
Allowable
defect
Rate
Target
100% of committed ships
prior to 5:00 pm as received
on Customer receiving dock
LSL = 0 hours late
USL = 6 hours early
Critical to Quality (CTQ) Characteristics
DMAIC
Methodology
Define
Customer
Requirement
Detailed
Specifications
Use the tree diagram to
define Customer CTQs
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TLC, SSEO 1.5 22002
Moving to Specific Candidate Projects
Candidate
Six Sigma
Project(s)
With financial
impact!!!
Interview
Customers
(Internal and
External), on
core business
issues and
opportunities
for
improvement
Use Voice of
the Customer
when
collecting and
analyzing data
Complete
CTQ gap
analysis and
prioritization
Determine a
candidate
project list
Estimate
project
benefits in
financial and
measurable
terms & rank
projects by
their impact
Determine
the effort
required for
each project
Conduct effort to
impact analysis
and prioritize the
project list
Select the top
projects and
determine the
Champion
and Owner

DMAIC
Methodology
Define
Critically
examine
Business
Objectives
and select
projects
aligned to
them with
financial
impact and
benefits
Champions drive the project selection as they own the
business objectives aligned to the Executive Staff
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TLC, SSEO 1.5 22002
Potential Projects
Candidate Six
Sigma Project(s)
Project
Champion and
Owner
Determine a
candidate
project list and
potential
benefits:
Manufacturing
Materials
Management
NPI
Finance
Design
HR

Conduct
effort to
impact
analysis and
prioritize the
project list
Effort / Impact Analysis
0
1
2
3
4
5
6
7
8
9
10
0 2 4 6 8 10 12
Effort
I
m
p
a
c
t
Impact
Project Effort Impact
1 6 1
2 3 3
3 4 3
4 7 3
5 10 3
6 2 6
7 5 6
8 8 6
9 1 9
10 9 9
Projects with high impact are
preferred
DMAIC
Methodology
Define
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TLC, SSEO 1.5 22002
Detailed Project Selection Criteria
Achieving breakthroughs requires prioritization of opportunities.
There are many more opportunities than there is time and
resources to work on them.
When selecting a process, we are trying to prioritize exactly which
problem to solve. If the problem is clear we move on to define the
problem.
In selecting a project, consider these issues:
a. Financial and strategic benefits
b. Improved customer satisfaction, CSI
c. Compatible with current goals and objectives
d. Translatable to other areas of the business
e. Probability of success
f. Level of effort, amount of resources needed to
complete project
DMAIC
Methodology
Define
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TLC, SSEO 1.5 22002
Example: Prioritizing Projects
Are your projects the things you like to do, easy to do or important to do?
DMAIC
Methodology
Define
Risk
Rank Potential Projects Champion Financial Translatability Defined Supports Clear Complexity p(S) Total
2 Reduce lead time HC 9 9 9 9 6 6 3 80%
3 Receiving process MP 6 9 6 3 9 6 9 77%
4 Customer complaints DS 6 6 6 9 9 6 6 73%
5 MRO material reduction LC 6 3 6 9 9 6 6 70%
6 Change control system JM 6 9 0 6 6 6 6 63%
1 Inventory reduction AB 9 9 9 9 9 9 6 93%
7 Chip test yields JF 6 3 0 0 9 6 6 53%
0%
0%
0%
Project name
Manager
responsible
for results
Hard dollar
savings
Solutions are likely
to be applicable
across the site and
the corporation
Currently
defined
business
objective
Supports
immediate
goals and
objectives
for the org.
Clear problem
definition with
clear project
boundaries
Complexity is a
function of time to
complete and the
difficulty of the
problem. Scope
(target for BB
project is 7-8)
Probability
of success
3 < $100k 3 = local
6 = $300k 6 = some external 3 = <3 months
9> $1M 9 = all locations 6= 4-5 months
9= 6+ months
TLC, 2002
Business Goals Benefits
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TLC, SSEO 1.5 22002
Develop Charter
Problem
Objective & Scope
Goal/target
Resource requirements
Financial benefits
Strategic benefits
Team resources
Project approval
In this step you will establish
direction for the project
by documenting
SIX SIGMA
Project Charter
Resource Requirements General Information Review Schedule
Project No: Location: Activity Date
Project Name: Business Start
Project Leader: Segment: D
GB/BB: Business M
Master BB: Objective: A
H/O Champion: Customer I
Team Members: Name Function %Time Initials CTQ(s): C
Current Close
Process
Capability: Sigma, Cpk, DPMO, Cycle-time, etc.
Date:
Project Definition
Project Problem Statement:
Project Objective Statement:
Project Scope/Limitations:
Project Goals and Targets:
Project Plan:
See page 2 of the project charter. Project Plan and Gantt Chart
Expected Benefits: Time frame:
Hard Dollar Savings:
Soft Dollar Savings:
Strategic:
Other Benefits:
Stakeholder Approval
Hands On Champion: Master Black Belt:
Name: Name:
Signature: Signature:
Functional Manager: Black / Green Belt:
Name: Name:
Signature: Signature:
Other: Other:
Name: Name:
Signature: Signature:
Date:
DMAIC
Methodology
Define
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TLC, SSEO 1.5 22002
Develop Charter Problem Statement
DMAIC
Methodology
Define
A clear description of the problem to
communicate to other people in the process
and rally support to improve it
A description of the issue or problem

What, when, where and how the problem occurs

What is critical to quality (CTQ) from the customer
perspective? What is nonconforming to
specifications?

Define the boundaries of the problem, how big is the
problem?

What are the consequences of the problem to the
Company and or Customer?

Do not state a solution when describing a problem
Description of
the Pain
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What process will the team focus on?
What are the boundaries of the process we are to improve?
Where does the process begin? Where does it end?
Which customers will be affected / included
What is outside of scope for the team?
What constraints or timelines must the team work under?
Project Objective and Scope
State Objective and Scope
Customer or Suppliers Site or Line Process
DMAIC
Methodology
Define
Process 1
Process 2
Process 3
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Goal Statement:
Reduce late shipment costs (Express Mail) to all
customers by 70% from $1.5M to $45K by January 200x.

Where When How Much
Goal Statement

Describe, in measurable terms, what success will look like when
youve solved the problem
Include a statement of the performance level that will satisfy your
CTQ and the time frame in which you plan to implement the
improvement. State targets and tolerances where appropriate.
DMAIC
Methodology
Define
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TLC, SSEO 1.5 22002
Determine Resources
DMAIC
Methodology
Define
Determine the Stakeholders
Who will need to be involved and at what
level for this project to be successful?
Determine Team Members
Who will need to be on the team and at
what % of their time?
Determine any Capital, Test or HR
Requirements
What materials, testing, software
programming, outside services or
equipment will be needed? Are those costs
acceptable to management?
Other Support to be Successful
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Project Plan
SIX SIGMA Project Plan Project Name & Number:
Site: Location: Revision Date:
Problem Statement:
Improvement Objective and Scope:
Goal and Targets
Metric(s)
Benefits
Baseline Goal Improvement Goals
Date
Date
Date
Date
Tasks and Timelines Project
Phases Activity Assigned to: Start Date: End Date: Status: Review Date
Define
Project's Customer CTQ
Project Charter
SIPOC
Financial analysis of project's benefits
Detailed process map
Measure
Analyze
Improve
Control
Team Members
Team Leader: On Plan/On Schedule
Team BB: Behind Plan, with effort can return to schedule
Team Members: Behind Plan
Task Completed
Champion:
DMAIC
Methodology
Define
Project
plan
remains
through
the life of
the project
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TLC, SSEO 1.5 22002
Benefits
Benefits may include any of the following:
Hard dollar savings (cost reduction)
Soft dollar savings (cost avoidance)
Improved Customer satisfaction
Improvement in the performance metrics (cycle time, yield,
defects, etc.)
Improved job satisfaction (reduction in frustration)
When considering benefits what must change for the savings to
occur?
DMAIC
Methodology
Define
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TLC, SSEO 1.5 22002
Financial Benefits Example
Cost Improvements Quantified:
Process
Curr Cost
($1, 000's
per week) New Cost Improvement
Touch-up & Handsolder 73 $ 70 $ 95% 3.7 $
Wash 24 $ 23 $ 95% 1.2 $
QA/ Final Inspection 58 $ 45 $ 78% 12.5 $
Rework 20 $ 16 $ 78% 4.4 $
QA (QA Engineers) 5 $ 4 $ 78% 1.0 $
Production Control/Expediting 27 $ 26 $ 95% 1.4 $
Total per week for costs elements above 207 $ 183 $ per Week 24.2 $
Total per Year 10,782 k $ 9,525 k $ per Year 1,257 k $
Determine costs of current baseline and the impact to cost if the goal is
achieved. Consider also the full impact to all effected lines and production
operations. If financial analysis shows poor ROI you may want to select
another project.
DMAIC
Methodology
Define
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Begin Mapping the Process with a SIPOC
DMAIC
Methodology
Define
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Move to a detailed Process Map
DMAIC
Methodology
Define
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Model and Automate Workflow
Database
Discrete Transactions
Performance Monitoring and Improvement
J MP for analysis
and root cause
determination
Workflow
Automation
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Begin Management/Champion Reviews
DMAIC
Methodology
Define
Once the project charter has
been approved and the team
formed around the project it is
essential to begin periodic
management reviews of project
performance.
Black Belts and Green Belts
meet with Management to
report performance.
Champions report to executive
staff on project performance.
Where possible integrate
reviews into current
management forums.
52
TLC, SSEO 1.5 22002
Six Sigma DMAIC Measure

Measure Activities
Determine Project Critical Xs and Ys
Determine Operational Definitions
Establish Performance Standards
Develop Data Collection and Sampling Plan
Validate the Measurements
Measurement Systems Analysis
Determine Process Capability and Baseline

Measure Quality Tools
Quality Function Deployment (QFD)
Measurement Systems Analysis (MSA)
Check sheet
Process Capability




DMAIC
Methodology
Measure
53
TLC, SSEO 1.5 22002
Measure Flow
Data Collection Plan
& Sample Size
List Of
Measures
(Xs and Ys)
Add
Specifications
and Compute
Sigma and
Capability
Restate
Improvement
Goals
Data Collection Plan
Who will
Do it?
Type of Operational Measurement Data Tags Needed Data Collection Person(s) What? Where? When? How Many?
Measure Measure Definition or Test Method to Stratify the Data Method Assigned
Name of Xor Y Clear definition of Visual Data tags are Manual? State What Location How The number
parameter attribute or the measurement inspection defined for the Spreadsheet? who has measure is for often of data
or condition discrete defined in such a or automated measure. Such Computer based? the being data the points
to be data, way as to achieve test? as: time, date, etc. responsibility? collected collection data collected
measured product or repeatable results Test instruments location, tester, is per sample
process from multiple are defined. line, customer, collected
data observers buyer, operator,
Procedures for etc.
data collection
are defined.
Sample Plan Define What to Measure Define How to Measure
MSA, GR&R,
Inspector
Effectiveness
Baseline
Goal
Data Collection,
Process Baseline
and Capability
Determination
54
TLC, SSEO 1.5 22002
(Xs) Leading Process -->Product --> Lagging (Ys)
DPU/Yield
Scrap
Rework, RMA

Processing time
Wait time
Delivery time

Accuracy of transaction
Transaction time
Product or service quality

Inventory levels
Materials management


Manufacturing
Cost of Quality


Transaction Cycle
Time


Customer
satisfaction


Materials costs

XZY errors
Temperature
Offset
Viscosity
Pressure

Determining Critical Xs and Ys

Supplier,
Receiving
and Process
Times


Transactional
and product
defects and
errors by
operation


T&Cs,
planning
systems,
production
systems

55
TLC, SSEO 1.5 22002
Translate
customer
requirements
into objective
measures
and prioritize
project
metrics
Using QFD to Prioritize and
Select Project Ys and Xs
Product or Process:
I
m
p
o
r
t
a
n
c
e
D
e
l
i
v
e
r
y

T
i
m
e
R
M
A
s
C
u
s
t
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m
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r

S
a
t
i
s
f
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c
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i
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n
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f
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c
t

R
a
t
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U
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i
t
s

d
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l
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v
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e
d
C
u
m

Y
i
e
l
d
U
n
i
t

D
e
l
i
v
e
r
y

D
e
v
i
a
t
i
o
n

f
r
o
m

C
o
m
m
i
t
D
e
v
i
a
t
i
o
n

f
r
o
m

t
a
r
g
e
t

o
n

d
e
l
i
v
e
r
y

t
i
m
e
F
i
r
s
t

P
a
s
s

Y
i
e
l
d
T
i
m
e

t
o

S
c
h
e
d
u
l
e

C
o
n
f
i
r
m
a
t
i
o
n
Customer Wants Total
Rapid schedule confirmation 4 3 0 3 0 3 0 3 3 0 9 24
On time performance 1 9 0 6 0 3 3 3 9 3 3 39
Defect free products 2 0 9 6 9 0 3 0 0 6 0 33
Routine cost reduction 5 3 3 6 6 3 0 0 0 9 0 30
Routine WIP reduction 7 3 0 3 3 0 0 0 0 3 0 12
Minimum lead times 6 0 0 3 0 3 0 6 0 0 9 21
Total 18 12 27 18 12 6 12 12 21 21 0 0 0
Unit of Measure Min. # CSI PPM # % # Min. % Hrs.
Raw data available? Y Y Y Y Y Y Y Y Y N
Std. report available? Y Y Y Y Y Y N N N N
Reliable data source? Y Y Y Y Y Y N Y Y N
Frequency of the report? Daily Wk Wk Wk Daily Daily Daily Daily Daily n/a
Needed frequecy? Daily Wk Wk Daily Daily Daily Daily Daily Shift Daily
Target 5:00 0 5 0 Plan 100% 0 0 100% 1 hr.
Lower Limit 4:45 n/a 4.5 n/a 5% 95% 1 -0:15 50% n/a
Upper Limit 5:15 1 n/a 100 5% n/a 1 0:15 n/a 2 hr.
Measurement capability
Measurement validated?
Competitive comparison
Ranking 5 9 6 8 7 10 2 1 4 3
Relationship key: 9 Strong relationship
6 Moderate relationship
3 Weak relationship
0 No relationship
Current Measures Needed Measures
DMAIC
Methodology
Measure
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TLC, SSEO 1.5 22002
Larger is Better
All Processes Need Clear Specifications
Smaller is Better
Target zero and upper specification limit
USL
One-sided - lower specification limit only
LSL
Two-sided specifications
LSL USL
Target is Best
Performance Standards for Each Y
Unacceptable Good
Good Unacceptable
Unacceptable Good Unacceptable
DMAIC
Methodology
Measure
57
TLC, SSEO 1.5 22002
Elements for a data collection plan
Develop Data Collection Plan
Data means nothing without an understanding of what the
data is, how it was collected, and the conditions under which it
was measured
Data properly collected and analyzed will help us to understand the
root cause(s) of the problem
Data Collection Plan
Who will
Do it?
Type of Operational Measurement Data Tags Needed Data Collection Person(s) What? Where? When? How Many?
Measure Measure Definition or Test Method to Stratify the Data Method Assigned
Name of X or Y Clear definition of Visual Data tags are Manual? State What Location How The number
parameter attribute or the measurement inspection defined for the Spreadsheet? who has measure is for often of data
or condition discrete defined in such a or automated measure. Such Computer based? the being data the points
to be data, way as to achieve test? as: time, date, etc. responsibility? collected collection data collected
measured product or repeatable results Test instruments location, tester, is per sample
process from multiple are defined. line, customer, collected
data observers buyer, operator,
Procedures for etc.
data collection
are defined.
Sample Plan Define What to Measure Define How to Measure
DMAIC
Methodology
Measure
58
TLC, SSEO 1.5 22002
Collect Visual Data to See the Problem
Where possible use a Digital or Video Camera and
capture the defect or process problem. A picture is
worth a thousand words in understanding and
communication of the origin and nature of problems.
DMAIC
Methodology
Measure
59
TLC, SSEO 1.5 22002
MSA for Validated Measurement
Long Term
Capability
Short Term
Capability
x
A

x
B
x
C
True Value
Repeatability
Reproducibility
Accuracy
Stability
First period of time Second period of time
x
A
x
B
x
C

Useful for characterization of variable gages
and inspection capability
The data is only as good as the quality of the
measurements
DMAIC
Methodology
Measure
60
TLC, SSEO 1.5 22002
Six Sigma DMAIC Road Map

Analyze Activities
Benchmark the Process or Product
Establish Causal Relationships Using Data
Analysis of the Process Map
Determine Root Cause(s) Using Data

Analyze Quality Tools
Statistical analysis of data
Cause and effect or event diagram
Histogram
Pareto diagram
Run chart
Scatter graph




DMAIC
Methodology
Analyze
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TLC, SSEO 1.5 22002
Analyze Flow
Project Data
Xs and Ys
Root Cause
Analysis
Summary
% Explained and % Unexplained
Analysis and
Stratification of Data
Measure
Responses or Outputs (Ys) Factors (Xs)
Dependent Variable USL LSL Target Independent Variable(s) USL LSL Target




Thomas A. Little Consulting 2002
Root Cause
Validation
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TLC, SSEO 1.5 22002
Benchmarking
No company is the best at all it does. Typically
there are some core competencies that make a
company great. There is much to be learned
by benchmarking other companies who are the
best at what they do.
Benchmarking begins with identification of
the process or business area we wish to
examine. This should be clear from our
problem statement and objective.
Knowledge that there are other ways of doing
things can be obtained from benchmarking.
Benchmarking often speeds up the solution
generation process.
DMAIC
Methodology
Analyze
63
TLC, SSEO 1.5 22002
Root Cause Analogy
Like pulling weeds unless we address
the root that causes the problem, poor
results will keep coming back.
Addressing the results or symptoms of a
problem will never provide lasting
solutions - given a little time the
problem will come back
We need to understand the Root
Cause of the problem from our
problem statement

DMAIC
Methodology
Analyze

64
TLC, SSEO 1.5 22002
Forward Problem Solving Versus Backwards
Forward
Problem Solving
Backwards
Problem Solving
No Idea of Root Cause
Strong Idea of Root Cause
Define Problem
Collect Problem Related Data
Analyze Data
Determine Root Cause(s)
Validate
Determine what is unexplained
Define Problem
List Probable Root Causes
Collect Supporting Data
Validate
Determine what is unexplained
DMAIC
Methodology
Analyze

65
TLC, SSEO 1.5 22002
Goal is to
determine cause &
effect relationships
Evaluate Data to Determine Root Cause
DMAIC
Methodology
Analyze
66
TLC, SSEO 1.5 22002
Data Vendor Purch. Order Mat. Week in
Collection Agent Date Type Quarter ordered
Late
Deliveries
1
2
3


Vendor
#

L
a
t
e

I
t
e
m
s

0
5
10
15
20
25
IBM DEC HP NEC MOT
Material Type
#

L
a
t
e

I
t
e
m
s

0
20
40
60
80
100
Flex c. Connectors ASICs SMT parts Solder
Purchasing Agent
#

L
a
t
e

I
t
e
m
s

0
5
10
15
20
25
Tom Shauna Kris Adam John
Stratify Data to Understand Root Cause
Stratification: Analysis of the same
data grouped and classified by the
data tags to examine frequencies at
different logical levels
DMAIC
Methodology
Analyze
67
TLC, SSEO 1.5 22002
Collected X and Y data
Hypothesis testing
t-test
F-test
ANOVA
Chi-square
Logistical regression
Regression analysis and Model fitting
List Of Probable Root Causes and key process sensitivities
List Of Vital Few Xs and Critical Ys
DMAIC
Methodology
Analyze
68
TLC, SSEO 1.5 22002
Analysis of Data
Provides the ability to visualize the
relationship between process
variables and to understand the
source and fundamental behavior of
problems
DMAIC
Methodology
Analyze

69
TLC, SSEO 1.5 22002
Analyze the Process Map for Waste
When Mapping the Process Consider the Following:
What you think it is... What it actually is... What it could be...
DMAIC
Methodology
Analyze
70
TLC, SSEO 1.5 22002
Check List for Root Cause Determination
Measurement
Poor repeatability
Poor reproducibility
Poor accuracy
Poor stability
Poor linearity
Invalid measurement or test method
Excessive test or measurement
Methods
Incorrect definition
Incorrect sequence
Missing definitions, implicit rules
Poor process controls
Poor measurement controls
Lack of critical information
Incorrect information
Excessive queues or out-time
Handling
Orientation
Poor management of change
Incorrect revision

Machine (process & test)
Machine maintenance or calibration
Machine controls or lack of controls
Machine fault or defect
Software or network fault
Machine related contamination
Machine tooling or fixtures
Incorrect machine or tester

Materials
Defective
Off-specification
Contaminated
Improper storage conditions
Labeling or identification
Incorrect amount or quantity
Improper transportation or handling
Expiration date exceeded or unknown
Problem with product design
Wrong materials
Environment
Physical environment (temperature, lighting, ESD)
Security or safety systems
Distractions in the environment
Particulates
Contamination
People
Level of staffing
Training
Competency or experience
Supervision
Conflicting goals
Compliance with procedures
Personality issues
Physical ability or function
Cognitive ability and function
Knowledge deficit
Communication with peers or supervisor


Check and investigate all those that apply to the problem under consideration
DMAIC
Methodology
Analyze

71
TLC, SSEO 1.5 22002
State the problem, then ask why did this problem occur until
you reach root cause.
Missing Parts on the Board During NPI
WHAT?
Why?
Why?
Why?
Why?
Why?
Improper cassette loading Missing cassette Machine Malfunction
Failed to locate cassette Part not available
Supplier problem Order incorrect Lack of lead time
Design change Customer schedule
Design error Performance improvement
5 Whys Example
DMAIC
Methodology
Analyze
72
TLC, SSEO 1.5 22002
Root Cause is achieved when we have identified the source of
the problem (use the 5+ Why approach)
For any problem there are typically many Roots. They vary in
frequency of occurrence. We need to know each root and their
associated frequency and or % of impact.
Proper Root Cause identification requires some explanation of
the failure mechanism based on understanding the process,
the physics, mechanics or chemistry. We must be able to
explain how changes in X cause changes in Y (otherwise we
dont understand it!)
Root Cause is verified when we can recreate or manipulate
the problem
To fix the Root Cause it must be controllable
Knowing Root Cause does not assure we know the solution to
the problem. Solutions can be formulated once we know the
root of the problem
Root Cause(s) Determination
DMAIC
Methodology
Analyze
73
TLC, SSEO 1.5 22002
List of Potential Root Causes
Final investigation needs to be made to determine if the
factors identified are actually the root cause of the problem
DMAIC
Methodology
Analyze
74
TLC, SSEO 1.5 22002
Summarize All Root Cause Analysis
For each possible root cause, determine those you will verify.
Summarize each possible root cause with the following codes:

Non Contributor (NC) Does not contribute to the problem
Possible Contributor (PC) A factor which may have an effect on
the response
Insufficient Data (ID) Not enough data to determine the
effect of the factor (may require additional effort)
Data not available (IDX) Data not available concerning the
factor
Root Cause (RC) Determined to be a root cause of
the problem
Non Controllable Root Cause (RCX) A root cause; however, outside the
control of the company, individual or
team
DMAIC
Methodology
Analyze
75
TLC, SSEO 1.5 22002
Root Cause(s) Validation and Summary
List all probable Root Cause(s)
Rank them in terms of effect size
Determine the additional tests
and or manipulation you plan to
use to validate the factors (X)
which have the greatest effect on
the response (Y)
Identify potential methods for
controlling the factors which
create the problem
When validation is complete
summarize all selected Root
Cause(s) and their effect size
DMAIC
Methodology
Analyze
76
TLC, SSEO 1.5 22002
Root Cause Analysis Example
Root Cause(s) Analysis Summary
Analysis Method Completed Investigation % Validation Validation
Process Review Potential Factor Review Date Who? Method Result Effect Method Date
Priority 1 Residual Material in Bulk Fill 15-Mar Tien Review use logs f or PK RC 100% Test for residual material 28-Mar
Process Map
Priority 3 Wrong Materials 9-Mar Tien Review inventory use f or PK NC 0%
Visual Analysis
Priority 4 Improper use of SOP 12-Mar Kris Review SOPuse on the line NC 0%
Cause and Effect (Event) Analysis
Priority 2 Invalid Assay 12-Mar Anna Verif y Test Procedure NC 0%
NC - Non Contributor IDX - Data not available % Unexplained 0%
PC - Partial Contributor RC - Root Cause
ID - Insufficient Data RCX - Root Cause Not Controllable
DMAIC
Methodology
Analyze
77
TLC, SSEO 1.5 22002
Six Sigma DMAIC Improve

Improve Activities
Develop Solution Alternatives
Assess Risks and Benefits of Solution Alternatives
Validate Solution using a Pilot
Implement Solution
Determine Solution Effectiveness using Data

Improve Quality Tools
Design of Experiments
Brainstorming
FMEA
Risk assessment

DMAIC
Methodology
Improve
78
TLC, SSEO 1.5 22002
Improve Flow
Based on RCA
Brainstorm Potential
Solutions, Costs,
Risks and Benefits
Implement changes
and determine
improved process
capability.
Examine
opportunities for
standardization
and translation
Design Experiments
where appropriate
Review and approve
solutions with
Management
Test and Validate
solutions
Installed
New
Process
Equipment
DPU
Reach
Goals?
Y
N
DMAIC
Methodology
Improve
79
TLC, SSEO 1.5 22002
Use general brainstorming techniques to generate
process and design change ideas which will eliminate the
root cause of the problem.
Separate ideas into short term and long term. Long term
with take 3 months or more to implement, short term is less
than 3 months.
Use voting and management involvement to generate
consensus on direction of approach
A single solution is not required at this point in the
improvement process. 2 - 3 short term solutions should be
selected and ranked. 1 to 2 long term solutions should also
be selected for evaluation and experimentation.
Brainstorm Potential Solutions
DMAIC
Methodology
Improve
80
TLC, SSEO 1.5 22002
Consider Solutions That Remove Process Waste
Seven muda:
1. Over production ahead of demand
2. Waiting for the next process step or information
3. Transporting materials unnecessarily
4. Over processing
5. Inventory that is more than bare minimum
6. Motion by employees that is unnecessarily
7. Producing non-conforming parts

For each area of waste, examine each process step to determine if
waste occurs in the operation and how to remove the waste from the
production system

DMAIC
Methodology
Improve
81
TLC, SSEO 1.5 22002
Solutions Centered on Lean Methods
Production
Control
Material
Flow
Machine
Management
Workplace
Management
Process
Management
Reduce
inventories and
production
costs while
improving
quality
DMAIC
Methodology
Improve
82
TLC, SSEO 1.5 22002
Consider Solutions that Automate the Workflow
Database
Discrete Transactions
Performance Monitoring and Improvement
Periodic Management
Reports
J MP for Analysis
Workflow
Automation
DMAIC
Methodology
Improve
83
TLC, SSEO 1.5 22002
DOE to Characterize, Improve the Process or
Product and Get Ready to Control
DMAIC
Methodology
Improve
Design experiments which improve the
robustness of the process. Improve process
parameter design, tolerance design and
reduce the source of defects.
Once experiments are
complete critical process
parameter sensitivities can
be modeled and determined
how to be targeted and
controlled.
84
TLC, SSEO 1.5 22002
Assure solution costs and timelines are acceptable to
management
Determine the complexity of each solution in terms of
time and ease of completion
Identify potential impact (change to the baseline) of each
solution. Explain how each solution will address the root
cause and impact real change in performance.
Financial benefit = benefit of solution cost to
implement
Assess the risks associated with each solution and the
likelihood of occurrence
Determine need to involve/notify customer concerning
any product or process changes
Make sure that proper validation occurs associated with
the solution prior to across the board implementation

Evaluate Cost, Complexity, Impact,
Benefit and Risk for Each Solution
DMAIC
Methodology
Improve
85
TLC, SSEO 1.5 22002
Solution Evaluation Form
Solution Evaluation Form
List Root Cause(s) List Solutions % Effect Estimated Cost Complexity Estimated Benefit Risk* Priority Validation?
Root Cause 1 Solutions 1
% of cost time or savings High Order Need
effect of effort to due to Medium of potential to
solution solution implement solution or solution verify
will have implementation short term? or Low implmentation effectiveness
on the long term? improvement 1st, 2nd, 3rd of solution
root cause in customer
satisfaction
Root Cause 2
* Use Risk Assessment Form
Evaluate solution alternatives to assure
the best solution has been selected
DMAIC
Methodology
Improve
86
TLC, SSEO 1.5 22002
Evaluating Risk
Risk Assessment Form
List the Solution or Failure Mode Severity Probability Score Action Owner Due
Major Elements of (What can go wrong) (1-10) (10 is (High scores Plan Date
Your Solution List each failure mode 10 is Worst very probable) need attention)
1. New Software a) Software does not link 10 6 60 Need to test database link Fred 15-Feb
correctly to database early during implementation James
b) Software is not available on 6 7 42
time Need to review progress Bill 25-Feb
c) Software needs revisions 3 9 27 during weekly meeting Watson
prior to deployment
2. Solution a)
b)
c)
3. Solution a)
b)
Evaluate failure modes and probability
to minimize any negative effects of
changes to the product or process
DMAIC
Methodology
Improve
87
TLC, SSEO 1.5 22002
Involve the Champion, Discuss with Management
Once the team has completed
their work it is now time to review
solutions with Management.
Allow the team to benefit from a
fresh perspective and add
Managements insight and
experience to the priorities.
This step improves the alignment
of Management to the Teams
efforts
DMAIC
Methodology
Improve
88
TLC, SSEO 1.5 22002
Evaluate Improvements in Series
Implement one solution at a time. Allow for sufficient time
to determine effect, then move to next solution.
(miss, no change) (hit, improvement)
Installed
New
Process
Equipment
DPU
Retrained the
Workforce on
the Process
DMAIC
Methodology
Improve
89
TLC, SSEO 1.5 22002
Six Sigma DMAIC Road Map

Control Activities
Determine Needed Controls (measurement, design, etc.)
Implement and Validate Controls
Develop Transfer Plan
Realize Benefits of Implementing Solution
Close Project and Communicate Results

Control Quality Tools
Statistical Process Control
Out of Control Action Plan (OCAP)
Design Changes to eliminate the defect



DMAIC
Methodology
Control
90
TLC, SSEO 1.5 22002
Control Flow
Based on Solution,
Brainstorm
appropriate controls
to sustain the gains
Realize savings and
determine final
financial benefits
and ROI
Determine long
term owner and
close the project
Select SPC controls
where appropriate
Review and approve
control plan with
Management
Implement and
validate controls
Cost Improvements Quantified:
Process
Curr Cost
($1, 000's
per week) New Cost Improvement
Touch-up & Handsolder 73 $ 70 $ 95% 3.7 $
Wash 24 $ 23 $ 95% 1.2 $
QA/ Final Inspection 58 $ 45 $ 78% 12.5 $
Rework 20 $ 16 $ 78% 4.4 $
QA (QA Engineers) 5 $ 4 $ 78% 1.0 $
Production Control/Expediting 27 $ 26 $ 95% 1.4 $
Total per week for costs elements above 207 $ 183 $ per Week 24.2 $
Total per Year 10,782 k $ 9,525 k $ per Year 1,257 k $
Determine costs of current baseline and the impact to cost if the goal is
achieved. Consider also the full impact to all effected lines and production
operations. If financial analysis shows poor ROI you may want to select
another project.
91
TLC, SSEO 1.5 22002
0
5
10
15
20
25
1

9

1
7

2
5

3
3

4
1

4
9

5
7

6
5

7
3

8
1

8
9

9
7

1
0
5

1
1
3

1
2
1

Process
Improvement
Process
Improvement
Process
Improvement
No Controls
Benefits Of Control Phase
I
m
p
r
o
v
e
m
e
n
t

Time
DMAIC
Methodology
Control
92
TLC, SSEO 1.5 22002
Process Controls
TYPES of CONTROLS
Measurement Based Control Test & Inspection
Management Dashboards & Review Test (error prone)
Statistical Process Control Inspection (poor effectiveness and costly)
Documentation Periodic Checks
Process Flow Diagrams Scheduled Maintenance
Product Drawings, Schematics Scheduled Calibration
Process Management Plans Training and Operator Certification
Written Procedures Audits
Training Periodic Management Reviews
Design Incentives
Design out Product Problems Measures which are associated with a bonus
Mistake Proofing Measures which are associated with a penalty
Robust Design Concepts

DMAIC
Methodology
Control
93
TLC, SSEO 1.5 22002
Elements of a Control System
Sensor (measurement technology & control chart)
Allows the system to monitor the
current process performance
Alarm (control limits and trend rules)
Establish limit(s) and run rules
which require attention
Control Logic (OCAP)
A predefined set of actions to
follow that are alarm specific
Validate (next sample)
Assure the action was effective
Add alarms where needed and assure we do not ignore valid
alarms. SPC methods should be used to establish alarms.
DMAIC
Methodology
Control
94
TLC, SSEO 1.5 22002
Define Sustaining Requirements
Now that the solution is known and you are ready to finish the project.
Determine the activities that need to continue after the team is dissolved
Define who is doing them now who should be the long term owner?
Determine who needs to do them in a sustaining long term mode
Define the set of tasks or systems that must be installed prior to
completing the project and backing out of the work
What else will be needed to make the solution effective and sustainable?
From the above issues, develop a transfer plan
What Vacuum will be
created when you leave?
DMAIC
Methodology
Control
95
TLC, SSEO 1.5 22002
Realize the Benefits of Improvement
How did you justify the cost savings for the project?
What changes will have to occur to create the
savings?
Based on the impact of the benefits of the solution
have you made changes to the process to realize the
benefits?
Possible Actions:
Re-deploy personnel
Reorganize the floor
Reduce inventory levels in Planning System
Eliminate inspection or test operations
Modify Vendor/Customer contracts
Other cost saving changes to the operation
DMAIC
Methodology
Control
96
TLC, SSEO 1.5 22002
Close the Project or Improvement Team
The goals have been met and the team has been successful
The solutions have all been implemented and demonstrated to be
effective
Assure all documentation is complete
Determine what standardization opportunities are available
Make sure the accomplishments of the individual or team are
appropriately recognized personally and publicly
Measure and communicate results of the project (benefits and savings)
Celebrate! We did it!
DMAIC
Methodology
Control
97
TLC, SSEO 1.5 22002
Section IV
Section IV Implementation Strategy
98
TLC, SSEO 1.5 22002
How Do We Do It?
Define
Goal alignment
Roles and responsibilities
Develop
Assemble materials
Identify people
Select software
Select training/consulting resources
Deploy
Executive Overview
Champion training / black belt & project selection
Black Belt training / project execution
Management review of progress
Realize results
6s
99
TLC, SSEO 1.5 22002
Typical Six Sigma Implementation Timeline
Start 1
st
Wave March-August, 2002
1
st
Month
Six Sigma Executive Overview Training day
Champion Selection
Champion Training 2 days
Select software (J MP) and schedule the training resource (ASQ-SVC)
Black Belt Selection and 1
st
Wave Six Sigma Projects
2
nd
Month
100% Commitment of Black Belts to Process Improvement
Begin Black Belt, Green Belt Training
2 days Define, 3 days Measure, 3 days Analyze, 3 days Improve, 3 days
Control, scheduled every three-four weeks for 5 sessions
Begin Management Review of Six Sigma projects
Select Master Black Belt (Hire or Contract)
6 +Months
Realize savings from 1
st
Wave, savings fund second wave etc.
Establish key metrics and dashboards if not present
Register in September for ASQ Certified Black Belt
2
nd
Wave September 2002
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Expected Cost/Benefits of One Wave of Training
Cost/Benefit Analysis of One Wave of Six Sigma
Costs
Training and Consulting Days Training Costs % of ROI
Executive Overview 0.5 1,475 $ 0.0%
Champion Training 2 5,900 $ 0.2%
Black Belt Training
Define 3 8,850 $ 0.2%
Measure 3 8,850 $ 0.2%
Analyze 3 8,850 $ 0.2%
Improve 3 8,850 $ 0.2%
Control 3 8,850 $ 0.2%
Master Black Belt 50 60,000 $ 1.7%
Total Training and Consulting Costs 111,625 $ 3.1%
Employee Costs Number Days Labor Costs
Champions 5 60 60,000 $ 1.7%
Black Belts 8 1056 844,800 $ 23.4%
Green Belts 12 312 249,600 $ 6.9%
1,154,400 $ 32.0%
Benefits
Activity Number Savings Total Benefits
Completed Projects 15 325,000 $ 4,875,000 $
ROI (annualized) 3,608,975 $
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Implementation Case Study
Six Sigma Financial Analysis
3Q 4Q YTD
Total Department Expense 25,281.00 $ 187,156.00 $ 212,437.00 $
Six Sigma Project Benefits
Alta - $ - $ - $
Quote on Hold Process - $ (5,074.13) $ (5,074.13) $
PN Reduction - $ - $ - $
Lost Units - $ (187.60) $ (187.60) $
Defective from Stock - $ - $ - $
FTF - $ 25,740.00 $ 25,740.00 $
Fed Ex Sweep - $ 71,867.04 $ 71,867.04 $
NEC RMA Optimization - $ 562,328.94 $ 562,328.94 $
CSP Warranty - $ 542,729.99 $ 542,729.99 $
Total Six Sigma Project Benefits - $ 1,197,404.24 $ 1,197,404.24 $
Results from one wave of training as verified by the Finance
department
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ASQ-SVC & TLC Team Up for Training Excellence
Six Sigma Improvement
Programs for West
Coast Industries
The Statistical Discovery Software
TM
Workflow Modeling and Automation

Certified Black Belt
Exam Date:
October 19, 2002
Registration:
August 23, 2002
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TLC, SSEO 1.5 22002
J MP and Ultimus Software Support
J MP Software for
Windows and Macintosh
links statistics with
graphics, helping you
explore your data, make
discoveries and gain
knowledge for better
decision-making. See
why so may professional
choose J MP as their
quality-improvement tool
of choice for Six Sigma
and quality improvement.
Ultimus software allows for
effective process modeling,
analysis and automation.
Transactional modeling and
full workflow automation
tools are available using
Ultimus

.
All ASQ-SVC Participants receive software use for six
months during their Six Sigma training
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Public and On-site Training

Champion Training
Six Sigma for Champions 16 hrs. $975 Mar/21-22/02

Black Belt Training and ASQ National Black Belt Certification
BB Six Sigma Define 16 hrs. $975 Apr/4-5/02
BB Six Sigma Measure 24 hrs. $1475 May/1-3/02
BB Six Sigma Analyze 24 hrs. $1475 Jun/5-7/02
BB Six Sigma Improve 24 hrs. $1475 Jul/10-12/02
BB Six Sigma Control 24 hrs. $1475 Aug/7-9/02

Green Belt Training
GB Six Sigma Define 8 hrs. $475 Apr/12/02
GB Six Sigma Measure 8 hrs. $475 May/10/02
GB Six Sigma Analyze 8 hrs. $475 Jun/14/02
GB Six Sigma Improve 8 hrs. $475 Jul/19/02
GB Six Sigma Control 8 hrs. $475 Aug/16/02
Low Cost, High Quality, Local Six Sigma Training
Location
Harmonic, Inc.
549 Baltic Way, Sunnyvale, CA.
2
nd
Wave begins in September
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TLC, SSEO 1.5 22002
Six Sigma for Champions
Six Sigma for Champions
Dates: March 21-22, 2002
Audience & Prerequisites:
Executive officers, Directors and Managers who will define and
manage Six Sigma Projects
Content:
Section I Six Sigma Introduction
Section II Management Infrastructure for Six Sigma, Roles and Responsibilities
Section III Managing the DMAIC process
Section IV Project Selection and Charter
Section V Implementation Issues, timelines and Black Belt, Green Belt selection
Section VI Measures of Success

Location: Harmonic, Inc.
549 Baltic Way
Sunnyvale, CA


Bring your own laptop
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TLC, SSEO 1.5 22002
Black Belt Six Sigma Define
Black Belt Six Sigma Define
Dates: April 4-5, 2002
Audience & Prerequisites:
Those individuals who will work on breakthrough projects as the
PRIMARY focus of their work activities. All individuals are required to
have a project to work on and an identified Champion for the project.
Content:
Section I Six Sigma Introduction
Section II Identify Project, Champion and Owner
Section III Determine Customer Requirements and CTQs
Section IV Define Project Statement, Objectives, Goals and Benefits
Section V Define Resource/Stakeholder Analysis
Section VI Develop Project Plan
Section VII Map the Process
Section VIII Project Leadership

Location: Harmonic, Inc.
549 Baltic Way
Sunnyvale, CA.

Bring your own laptop
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TLC, SSEO 1.5 22002
Green Belt Six Sigma Define
Green Belt Six Sigma Define

Date: April 12, 2002
Audience & Prerequisites:
Those individuals who will work on breakthrough projects as the
SECONDARY focus of their work activities. All individuals are required
to have a project to work on and an identified Champion for the project.
Content:
Section I Six Sigma Introduction
Section II Determine Customer Requirements and CTQs
Section III Define Project Statement, Objectives, Goals and Benefits
Section IV Define Resource/Stakeholder Analysis
Section V Develop Project Plan
Section VI Map the Process

Location: Harmonic, Inc.
549 Baltic Way
Sunnyvale, CA.
Bring your own laptop
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TLC, SSEO 1.5 22002
Project Based and Value Oriented
All training is Hands On and applied to your companys
projects. All training is done with computer applications.
Complete the training and complete a project.
Seating is limited! ~20 seats per class.

Registration Information
You can register on-line using www.asq-svc.org or www.dr-tom.com.
Or register for the Six Sigma public courses by contacting Tom Little
at (925)-285-1847 or by e-mail drlittle@dr-tom.com.
www.asq-svc.org

www.dr-tom.com
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TLC, SSEO 1.5 22002
Six Sigma Executive Overview Summary
There are tremendous improvement and savings available to
companies in their operations if they will mobilize their
resources toward reduction of waste and improvement of
quality
Six Sigma requires Leadership from the Executive Staff
The roadmap is clear and the methods for improvement are
well defined
Software tools make the data collection and analysis clear
Development of an implementation and training plan is the
next step
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Books:
E.L. Grant & R.S. Leavenworth, Statistical Quality Control (New York: NY, McGraw Hill, 1996).
D.C. Montgomery, Design and Analysis of Experiments. (New York: NY, John Wiley & Sons,
1996).
G.E. Box, J.S. Hunter & W.G. Hunter, Statistics for Experimenters: An Introduction to Design,
Data Analysis, and Model Building (New York: NY, John Wiley & Sons 1978).
Damelio, Robert. (1996). The Basics of Process Mapping. Productivity Press, Portland, OR.
Web Sites:
Thomas A. Little Consulting at www.dr-tom.com
ASQ Silicon Valley Section at www.asq-svc.org
Software: SAS JMP contact SAS Institute at www.jmpdiscovery.com




382 Stanwick Street
Brentwood, CA 94513
1-925-285-1847
drlittle@dr-tom.com
www.dr-tom.com



References & Resources