SIX SIGMA

ANALYZE OVERVIEW
YOU ARE HERE
 APPROACH TO ANALYZE

Hypothesis
Develop a Organize
Testing and Design of
focused problem Process Analysis potential
Regression Experiments
statement causes
Analysis
 ANALYZE PHASE VA NVA

Process Analysis Perform a detailed

process analysis to
identify problems

Cause & Effect

Display your theories
about root causes using
a cause & effect diagram

Hypothesis-Testing
Regression Analysis
Chi-Square t-test
c²
Design of Experiments
ANOVA

Regression
X1
Verify Root causes
through statistical tools
Use hypothesis testing
Use DOE and response
to identify differences
surface optimization to
quantify relationships.
 AT THE END OF THE DEFINE PHASE...

At the end of the Define Phase you may have :

• A detailed problem statement.
• A process flow diagram.
• A process definition in SIPOC form.
• A measure for Y or Y1, Y2,… Yk.
• A target improvement value.
• A estimation of benefits.
• A project owner.
AT THE END OF THE MEASURE PHASE...
At the end of the Measure Phase you may have :
• Done the FMEA & Identified high RPN causes
• You might have Recommended Actions
• Created a Process/Product Tree
• Performed Gauge R & R for Y or Yis
• Prepared Subgroups and collected Samples
• Measured the Above
• Made a Histogram for variable data and calculated
descriptive statistical measures
• Calculated DPU, DPO, DPMO, ZST, ZLT and Yield.
 IN THE ANALYSIS PHASE YOU WILL...

• Brainstorm on X’s
• Find change of which X’s affect Y and in what
manner
• Ultimately find which X’s are critical to move the
Y in the desired direction

IN MEASURE PHASE, WE DEALT WITH Y’s.

IN ANALYSIS PHASE, WE WILL DISCOVER
& DEAL WITH X’s.
 THE FOCUS OF SIX SIGMA

Y = f(X)
• Y • X1, X2,…….., Xn
• Dependent variable • Independent variable
• Output of the process • Input to the process
• Effect • Cause
• Symptom • Problem
• It is monitored • It is controlled

To get results should we focus on Y or X?

 WHAT YOU NEED TO KNOW
ABOUT A PROCESS
– Many defects arise because something in a process is done
incorrectly or inefficiently.
– To improve process sigma you need to be able to pinpoint
process problems and find better, more effective ways to
accomplish the same work.
– In this module, you will learn tools that will help you
understand your process and…
Identify… In order to…
Complexity Simplify; error-proof
Wasted time Speed up cycle time
Bottlenecks Target improvements; reduce constraints
 UNDERSTANDING
•To better understand
A PROCESS
your process, you will:
– Create a flowchart of
your process.
– Identify which of
your process steps
are value-added and
which are nonvalue-
added.
– Determine cycle time and identify bottlenecks.
– Look for errors or inefficiencies that contribute to
defects.
•
FLOWCHARTS
Flowcharts are tools that make a process visible.

Start Step 1 Step 2 Step 3

Yes
Decision Step 6 End

No

Step 4 Step 5
 WHY USE FLOWCHARTS
Use of a flowchart:
– Creates a common understanding about the process.
– Clarifies steps in the process.
– Helps identify improvement opportunities in the
process
(complexity, waste, delays, inefficiencies and
bottlenecks).
– Helps uncover problems in the process.
– Helps reveal how the process operates.
 WHEN TO USE FLOWCHARTS
Use a flowchart:
– To create common understanding.

– To clarify the steps in a process.

– To build consensus on how a process actually

operates and how it should operate.

– To understand the cause of common problems

affecting how all units are processed.
 STARTING AT THE TOP
• Key business activities can be defined at different
levels of the organization:
New Product Demand Demand Customer
Level 1 development Fulfillment Service
Generation

Level 2 Ordering
Producing Picking Shipping
Materials

Level 3 Mixing Filling Sealing Packing

– Level 1 = highest-level view of work in the organization

– Level 2 = work that flows across several departments or
within an entire department or work area
– Level 3 = a detailed view of of a particular process
 TYPES OF FLOWCHARTS
USEFUL
FOR UNDERSTANDING
PROCESS
– Activity flowcharts FLOW flowcharts
– Deployment
Sales Technical Shipping Coordinator
 BASIC VS. ACTIVITY
•In your SIPOC FLOWCHARTS
analysis, you probably created a top-level
flowchart that just showed the basic steps of the process
Start Step 1 Step 2 Step 3 Step 4 End

•In order to understand the current situation in sufficient

detail, you may find that you need a more detailed
flowchart.
– The level of detail varies depending on need and
circumstance.
– Additional information can be written under each step.
– A more detailed flowchart is called an Activity flowchart.
 ACTIVITY FLOWCHARTS
Hotel Check-out Process Process Name

• Activity 1 2 YES 3
Is there

flowcharts are Approach front desk

a line?
Wait
Clear
direction of
NO flow (top to
specific about Numbered
steps
4
Step up to desk
bottom or
left to right)

what happens in 5

a process. They Key of symbols

Clerk
available?
NO
6
Wait

often capture YES

7 Consistent
decision points, Start/End

Action/Task
Give room number
level of
detail

rework loops, Decision

8
Check bill

complexity, etc. Sequence

9
Charges NO 10
correct? Correct charges

YES

11
Clear starting
Pay bill and ending
Date of creation points
or update &
name of creator
 DEPLOYMENT FLOWCHARTS
• Deployment People or groups
listed across the top Invoicing Process
flowcharts show the Sales Billing Shipping Customer Elapsed
Time
detailed steps in a Steps listed in 1 Time flows
Delivers goods
process and which column of person or
group doing step or 2 8
down the
page
people or groups are in charge Notifies sales of
completed delivery
Receives
delivery
5 days

involved in each step. 3

Sends invoice to
customer
9
Records receipt and
claims against this
delivery

• They are particularly 4

Notifies billing
10
Receives invoice
10 days

of invoice

useful in processes that 5

11
Checks invoice

involve the flow of Files invoice against receipt

12

information between Pays bill

people or functions, as
6
Receives and
records payment
Horizontal lines
clearly identify
they help highlight 7
Reviews weekly
report of overdue
handoffs
handoff areas. accounts
 WHICH FLOWCHARTING
TECHNIQUE SHOULD I USE?
Basic Activity Deployment
Flowchart Flowchart Flowchart
 To identify the major  To display the  To help highlight
steps of the process complexity and handoff areas in
and where it begins decision points of a processes between
and ends process people or functions

 To illustrate where in  To identify rework  To clarify roles and

the process you will loops and bottlenecks indicate dependencies
collect data

Which flowchart do you intend to use for your project?

 HOW TO CREATE
FLOWCHARTS
•When creating a flowchart, work with a
group so you can get multiple viewpoints.
– Brainstorm action steps
• Write these on self-stick notes or on
a flipchart
• Make sure to include the steps that
occur when things go wrong

– Arrange the steps in sequence

• Be consistent in the direction of flow—
time should always flow from top to bottom, or from left to right
• Use appropriate flowchart symbols
– Check for missing steps or decision points
– Number the steps
 FOUR PERSPECTIVES
• Flowcharts can map four different perspectives on a
process:
– What you think the process is.
– What the process really is.
– What the process should be.
– What the process could be.

• At this stage of a DMAI²C project, you are trying to

define the current situation, as it is. Therefore, your
flowchart(s) should map what is really happening in
the process.
 PROCESSES AND
• Compare the COMPLEXITY
flowchart below with the one on
the next page.
– Which of the flowcharts more accurately reflects reality?
– Which of these flowcharts would you prefer to use? Why?
Take Place Select Select
Original to Original Size Orientation
Copier on Copier

Yes
Select Start Copier
Number Another No
Copier Runs Page?
of Copies

Remove Collect Clear Leave

Original Copies Staple Modes Room
 COPY PROCESS
Yes

Take Original Copier Yes Wait? No Leave

in Use?

No

Place No Glass Yes Clean

Original Dirty?

Select
Size
Select
Orientation
Select
Number Paper? No Find
Paper
Yes
Yes
Box No Knife? No Find Open
Open? Knife Box

Yes

Yes Paper No Find

Loaded? Help
Yes No
Start Copy Yes Quality No Stop Adjust?
Copier Made? Ok? Copier
Yes
No
Adjust Find
Help
Yes Another Fix No
Page? Problem?
No Yes

Remove Collect Staple Clear Leave

Original Copies copies modes
 VALUE-ADDED AND NONVALUE-
•Value-Added Step:
ADDED STEPS
– Customers are willing to pay for it.
– It physically changes the product.
– It’s done right the first time.
•Nonvalue-Added Step:
– Is not essential to produce output.
– Does not add value to the output.
– Includes:
• Defects, errors, omissions.
• Preparation/setup, control/inspection.
• Over-production, processing, inventory.
• Transporting, motion, waiting, delays.
 EXAMPLES
Value-Added Activities Nonvalue-Added Activities

• Entering order • Waiting

• Ordering materials • Storing
• Preparing drawing • Staging
• Assembling • Counting
• Legally mandated testing • Inspecting
• Packaging • Recording
• Shipping to customer • Obtaining Approvals
• Testing
• Reviewing
• Copying
• Filing
• Revising/Reworking
• Tracking
 FLOWCHART WITH WASTE
HIGHLIGHTED
• You can turn Start

an activity 1.
Stop
9.
Adjust
settings
packing line
flowchart into No

2. 5. 6. 7. 8. Yes 10.
an opportunity Same
product?
Yes
Change
length
Adjust
speed
Run test
cartons
Speed
OK?
Adjust
stapler

flowchart by 3.
No
4.
4.
Yes
No 12. 11.
Pick-up Timing Staple
highlighting appropriate
tools
Clean
okay?
machine
Closed?
test carton

Yes
the steps that 18. 13.
Load carton
Stop
add waste and line
No

complexity to Yes 17.

Right
product?
16.
Call
No 15.
Product?
14.
Refill
foil
filling
the process.
Yes

19.
Start
production

Example: Changeover process

 OPPORTUNITY FLOWCHART
Steps that are essential
even when everything

• An works correctly move

down the left side.
Steps that would not be needed
if everything worked right the
first time move horizontally

opportunity across the right side.

Value-Added
flowchart is Yes Nonvalue-Added

organized to Take Original

Copier
in Use?
Yes
Wait?
No
Leave

separate No

Yes
Place Glass
value-added Original
No
Dirty? Clean

steps from Select

Size

nonvalue- Select
Orientation

added steps. Select

Paper?
No
Find Box No
Knife?
No
Find Open
Number Paper Open? Knife Box

Yes Yes Yes

Yes Paper No Find

Loaded? Help
HOW TO CREATE AN OPPORTUNITY
– Divide page into FLOWCHART
Value-Added Steps Nonvalue-Added Steps
two sections Loop
Yes
• Value-added section
smaller Yes

than cost-added- Loop

only section No No

– Time flows down

the page
– Only join two Loop Yes

Value-Added steps No

with an arrow if
there are no
Nonvalue-Added
steps in between
 CYCLE TIMEProcess
Inputs Outputs

Suppliers Customers

Cycle Time

Value-Added time Nonvalue-Added time

• Delays
• Hands-on processing time
• Rework/corrections
• First-time through only
• Excess transportation
 CYCLE TIME REDUCTION
Waste
• Understanding cycle time: • Defects
•
–Provides a better •
Over-production
Over-processing
understanding of the process. • Transporting
• Inventory
–Shows the impact of nonvalue- • Motion
• Delays
added steps on the time it takes
to produce product or service.
–Identifies bottlenecks in the
process. Value-
adding
processing
time

Reducing cycle time:

Helps increase predictability in the process.
Helps reduce waste and rework, which reduces costs.
Provides a competitive advantage by reducing cycle time.
 MEASURING CYCLE TIME
1.Decide whether you will 3. Develop consensus about
measure cycle time on the what is value-added and
entire process or on a subset what is nonvalue-added
of steps. time (if you haven’t done
so already).
2.Develop operational
definitions for the starting and 4. Develop a data collection
ending points of each step. form.
Cumulative
Process Step VA Time NVA Time Notes
Time
 VALUE ANALYSIS MATRIX
• You can track specific types of nonvalue-added time
with a value- analysis matrix. This helps clarify not
only the types of waste present in the process, but also
the percentage of overall process time each nonvalue-
added step adds.
Process Step 1 2 3 4 5 6 7 8 9 10 Total %Total
Time (Hours) 12 10 1 10 20 6 10 1 10 20 100 100%

Value-Added 2 2%

Nonvalue-added
Fixing errors 10 10%

Prep/Set-up

Control/Inspection 6 6%

Delay 52 52%

Transporting/Motion 30 30%

Total 100 100%

 VALUE-ADDED FLOW ANALYSIS
Activity VA
Time
NVA Activity VA
Time
NVA
Trolley arrives approximately Wait (until Foil Line ready) 2 hrs.
10:00 a.m. at desk Move to Foil Line
Match with rest of materials 5 min. 10 min.
Wait (for paperwork)
Transfer to desk and log 1 min.
Transfer 1 box to Foil M/C
Move to Needle attaching rack Total Steps:
Load trays into magazine
Place into green box *Value-Added Steps:
Wait (for M/C prep) 5 min.
Wait 16 hrs. % Value-Added Steps:
Foil seal into tray, 4.5 sec. 68 sec.
Move by hand to pair of m/cs
Transfer tray to table (30 doz. per)
Wait (for double check) 2 min. Total Time:
Wait (for sample inspection) 1 min.
Wait (for paperwork) 2 min. *Value-Added Time:
Wait (for rest of tub)
Transfer material to side station 5 min. 1 hr. 40 min.
% Value-Added Time:
Move to trolley
Attach and pull test (bundle of 35 min. 5 min.
300) (bundle) Wait (for sign-off)
Total NVA Time:
Wrap bundle in plastic bag, attach 1 min. Move trolley to overwrap rack
card Transfer tubs to rack
Place into box 1 hr. 50 min.
Wait (for previous job to finish)
Wait (for other 19 bundles) 11 hrs. 10 min.
Wait (for paperwork and setup)
Wait for closing paperwork 2 min. 1 min.
Overwrap 24 for check
Move to planning desk 2-3 min.
Wait (for check)
Wait 10 min.
Overwrap 1 hr. 50 min. for 500 doz.
42 sec.
Review, log 5 min. 12 sec.
Manual place into box (12)
Move to Winding Kanban
Weigh count
* All value-added steps in this
Wait 1-2 hrs.
Sleeve 5 sec.
example are of value to the
Move to Winder
Wait (for other 11 trays on cart) 1 hr. 40 min. business only. There are no
Transfer 4-5 bundles to tray
Transfer card out of way customer value-added
Wait (for recording, setup) 5 min. 15 min. steps.
Wait (for lead person)
Wind 96 (1 tray) 5 min. Wait (for sign-off, log out) 5 min.
Visual check and place into box 1 min.
Move to film wrap buffer
Wait (for 6 or more trays) 30 min. 12 hrs.
Wait (buffers 3 shift operation from
Wait (for label) 30 sec. 1 shift operation)
Transfer box to trolley Move to film wrap machine
Wait (for rest of order-total 9 5 hrs. Wait (for previous batch + 6) 1 hr.
boxes) 15 min.
Verify count, sample box, code no.,
Move next to Foil Line table etc.
Wait 15 min. Move to film wrap machine 30 sec.
Wait (for review and logging, add 2 min. Film wrap 15 sec.
foilmat’l)
 BOTTLENECKS
• Bottlenecks increase cycle time

• A bottleneck is:
– Any resource whose capacity limits the amount
of information or material that flows through
the process.
– Any resource whose capacity is equal to or less
than the demand placed upon it.
• How do you recognize bottlenecks?
 WHEN TO GO FOR DESIGN
EXCELLENCE
– Process entirely broken: the existing process has too
many non-value-added steps, too many successive
DMAI²C projects required
– Changing customer expectations: by the time the
current problems are solved, new problems will occur
– Technology development: new technologies allow to
meet all customer requirements at lower cost or gain a
competitive edge
– Next generation: the existing products remaining
lifetime is very short, a successor will be needed soon
– System limits: the performance gap is due to system /
business model configurations that cannot be changed
 Become Aware of the Problem

Describe the Problem

Define and Verify Root Causes

Identify Potential Causes

Select Likely Causes

Is the Potential Cause a Root Cause?

Yes
Identify Alternative Solutions

Verify Correctiove Actions

Implement permanant actions

Prevent Recurrence

Congratulate your Team

 DEFINE AND VERIFY ROOT CAUSES
Identify Potential Causes
• Define the "effects" for a Cause and Effect diagram clearly.
• Prepare a 5M, Process, or Stratification Cause and Effect
Diagram for each effect. You may choose to use a combination.
• Prepare a Time Line Analysis if the problem was not always
present. Identify "what changed, when"?
• Perform a Comparative Analysis to determine if the same or a
similar problem existed in related products or processes.
• Identify several potential causes. Develop a plan for
investigating each cause and update the Action Plan.
• Evaluate a potential cause against the problem description.
 DEFINE AND VERIFY ROOT CAUSES
Analyze Potential Causes
• Use the alternative process to analyze each potential cause
- Hypothesis generation: How does the potential cause result in the problem?
- Design: What type of data can most easily prove or disapprove the
hypothesis?
- Preparation: Obtain materials and prepare a check sheet
- Data collection: Collect the data
- Analysis: Use simple, graphical methods to display data
• Investigate several potential causes independently.
• Use an Action Plan to manage the analysis process for each potential
cause being studied.
Validate Root Causes
• Clearly state root cause(s) and identify data which suggests a
conclusion
• Verify root cause factors are present in the product or process
• Can we generate the problem independently?
 DEFINE AND VERIFY ROOT CAUSES
ASSESSING QUESTIONS
You are prepared for a review when you can answer these questions.

POTENTIAL CAUSES
1. Have you drawn the process flow, FMEA, stratification groups,
C/E diagrams and identified all sources of variation?
2. Have all sources of information been used to define the cause of
the problem?
3. Do you have the physical evidence of the problem?
4. Can you establish a relationship between the problem and the
process?
 DEFINE AND VERIFY ROOT CAUSES
POTENTIAL CAUSES

5. Is this a unique situation, or is the likely problem similar to past

experience?
6. Has a comparative analysis been completed to determine if the
same or similar problem existed in related products?
7. What are the experiences of recent actions that may be related to
this problem?
8. Why might this have occurred?
9. Why haven't we experienced this before?
10. What changed?
 DEFINE AND VERIFY ROOT CAUSES
Manufacturing
- new suppliers?
- new tools?
- new operators?
- process changes?
- measurement system?
- raw materials?
- vendor-supplied parts?
- do other plants have a similar problem?
Engineering
- any pattern to the problem?
- geographically?
- time of year?
- build dates?
- did the problem exist at program sign-off?
- was it conditionally signed-off?
- did the problem exist on the functionals?
- did the problem exist on the 4-P's? (pre-production product prove-out)
 DEFINE AND VERIFY ROOT CAUSES
DATA
1. What data is available to indicate any changes in the process?
2. Does data exist to document the customer's problem?
ROOT CAUSE
1. If the potential cause is the root cause, then how does it explain
all we know about the problem? How has this been verified?
2. Is there any possibility that there is another contributing cause
besides the one we have identified? How is this being evaluated?
OTHER POTENTIAL CAUSES
1. What evidence do you have that other potential causes are
actually occurring?
2. If they are occurring, what unwanted effects might they produce?
3. Do actions need to be taken to ensure that other potential causes
do not create unwanted effects?
 A PROBLEM COULD BE
• nonconformance
• scrap
• chronic rework
• recurring accepted on deviation
• poor yield
• customer complaint
• machine breakdown
• low process capability
• loosing customers
• reducing market share
• DSO
• late delivery etc.
Sweet fruit Process
DFMA limitations
4s
Bulk of fruits
Process characterization
and optimization
3s
Low hanging fruits
Simple QC tools

Logic and intuition 2s

Quick hits-Kaizen
Increase of sigma rating requires an exponential decrease in
defect reduction
KNOWN APPROACHES FOR PROBLEM SOLVING

A. Experience/Intuition oriented
B. Data based
‘A’ is traditionally used, as it requires no factual analysis
or observations
Symptom Remedy
 ‘B’ is scientific and methodical.
Symptom Root Cause Remedy
In problem solving by approach ‘B’ , Simple QC tools play
a role
 ROLE OF SIMPLE QC TOOLS
TOOL ROLE
Data To quantify the current status or
Gathering magnitude of the problem.
Check Sheet To facilitate data gathering.

Stratification To identify and segregate different

sources of the problem.

Pareto To prioritize the problems/causes for

Diagram taking action.
 ROLE OF SIMPLE QC TOOLS
TOOL ROLE
Brain Storming Generating many ideas for solving a
specific problem.
Cause & Effect Generate ideas in a structured way for
Diagram possible causes of a problem.

Histogram To study the pattern of variation in a set

of data.

Scatter To study the relationship between two

Diagram sets of values.
 POPULATION, SAMPLE AND DATA

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 BRAIN STORMING
What is Brainstorming ?
• Brainstorming is a simple but effective technique for
generating many ideas of a group of people within a
short span of time to solve a given problem

BASIC RULES FOR BRAINSTORMING

 Defer evaluation
 Fantasize freely
 Generate quantity
 Build on ideas