Nakayama Technology Corporation

Sigma Level 1 1 1 1 1 1

Short-Term Long-Term PPM PPM 1 1 1. 1 1 11 1 1 1. 1 1 11 1 1 11 1 1. 1 1 1. 1 1 11 1 1. 1 11 1 1 11 1 1. 1. 11 1 1. 1 11 11 . 1 11 1. 11 . 11 .

1

32,000 TILES = 711 PANELS
IN-COMING & IN-PROCESS INSPECTION 1.5% TARGET REJECTION 1.5% OF 32,000 TILES = 480 DEFECT TILES
ASSUME: 1 TILE DEFECT PER PANEL = 2.2% PROBABILITY 480 PANELS OUT OF 711 PANELS ASSUME: 32,000 TILES – 480 DEFECT TILES

=31,520 TILES ( ASSURANCE ? )

1 PANEL = 45 TILES
2

3

Six Sigma Overview Objectives 1 To know what “Six Sigma” means 1 To be able to explain the meaning of Six Sigma as a measure of a product’s ability to meet customer requirements To be able to explain the meaning of Six Sigma as a change initiative in a business 1 4 .

5 . Objectives for this session 1 To gain a high-level understanding of Six Sigma and the EMC approach to Six Sigma 1 To walk out with an understanding of what is required to write a good project definition to assist your candidates to have a clearly defined project before attending Week 1 training. 1 To ensure a common understanding of basic tools and concepts used in Six Sigma training 1 To clarify what is expected from you as champions and management to foster this cultural change in using these tools in our day to day business.Comprehend Business Objectives/Priorities.

the sales organization.Does Your Company Need Six Sigma? Does Your Company 1 Believe zero-defect goals are neither realistic nor achievable? 1 Have 10 times the number of suppliers required to run the business? 1 Have 5 to 10% of its clients dissatisfied with the product. or the service you’ve provided? 1 Have customers who will not recommend that others purchase your goods or services? 1 Quantify profitability and growth? 1 Deliver new products to the market? (continued) 6 .

Does Your Company Need Six Sigma? -cont. Does Your Company 1 Continually implement price reductions for current products? 1 Have an increasing number of competitors? 1 Spend a high % of sales dollars on repairing or reworking a product before it ships? 7 .

Does Your Company Need Six Sigma? -cont. Does Your Company - 1Have a magician in your organization? 8 .

Six Sigma Objectives 1 The Vision: Drive industries to design and produce products/services to Six Sigma standards 1 The Goal: Produce goods and services at a Six Sigma level. As your organization moves toward Six Sigma quality. you will: 1 1 1 1 1 Eliminate defects Reduce production and development costs Reduce cycle times and inventory levels Increase profit margin Improve customer satisfaction 1 The Strategy: Use a data-driven structured approach to attack defects to improve the sigma level of your goods and services 9 .

A+ Our organization quantifies processes via prediction equations. Our organization logically groups the data. We do not use data. Our organization uses sample data along with inferential statistics.” Our organization collects data and we sometimes look at the numbers. Our Grade: _____________ 10 . Our organization uses sample data along with basic statistics. “We collect data. Our organization collects data simply to say.What Is Six Sigma? 1 Please grade your organization based on the following: F E D C B A Our organization uses only tribal knowledge. We form charts.

What Is Six Sigma? A Vision of a Six Sigma Company Organizational Issue Problem resolution Behavior Decision making Process adjustment Supplier selection Planning Design Employee training Chain-of-command Direction Manpower Traditional Approach Fixing (symptoms) Reactive Experience-based Tweaking Cost (piece price) Short-term Performance If time permits Hierarchy Seat-of-pants Cost Six Sigma Approach Preventing (causes) Proactive Data-based Controlling Capability Long-term Producibility Mandated Empowered teams Benchmarking and metrics Asset 11 .

What Is Six Sigma? 1 Sigma level: The business metric used to indicate the performance of a process to some specification 1 σ1 The number of standard deviations that fit between the mean and the nearest specification limit σ2 LSL USL OR 1 A measure of the number of defects per opportunity produced by a process σ1 12 .

What Is Six Sigma? 1 Is 99% yield good enough? 1 1 1 1 Five lost e-mail messages per month No cable television for 3.319 % Six Sigma Standard 6σ Capability 99.000 overnight carrier packages lost per week 25 incorrect car rental reservations per company per day Automotive Standard 4σ Capability 99.5 hours each month 15.99966 % .379 % Long-Term Yield 13 Today’s Standard 3σ Capability 93.

1 111 111 11 .1 1 .Sigma level compared to defects Note: Industry standard has defined a sigma level to imply short term.1 1 . 111 . 1 11 1. 1 11 . 11 11. Short-term distribution shifted by 1.1 Long-Term PPM Short-Term PPM 1 11.1 111 1 11 . 1 1 11 111 .1 1 11 .1 11 1 .1 111 11 . 1 1. 1 1 11 Sigma Level 1 1 1 1 1 1 Short-Term Long-Term PPM PPM 11 1 . 11 .1 11 1 .1 1 11 . Short-Term PPM Long-Term PPM 14 . 1 1 11 1 1 1 11 11.5σ to obtain long-term PPM Defects per Million Opportunities 111 111 111 111 111 111 111 111 111 111 111 111 111 111 111 111 1 1 111 .1 1 . 1 11 Sigma Level 1 11 .1 11 11 1 11 . 1 11 1 1 11 11.

432% 0.000% 0.396% 0.593% 98.000% 0.379% 93.99379 (10) = 93.379% 4σ mechanical pencil manufacturer (assume 10 opportunities for a defect): Has an RTY of 0.755% 53.000 ±6 Sigma 100.003% 0.257% 75.086% 0.768% 98.Benchmarking Standards Process Capability (Sigma Level) ±3 Sigma 93.636% 49.042% Product Complexity (# of Opportunities) 4σ toothpick manufacturer (assume one opportunity for a defect): Has an RTY of 0.638% 39.961% Rolled Throughput Yield (RTY) 15 .156% 97.000% ±5 Sigma 99.000 150.057% 0.000% 0.000% 0.000% (Distribution Shifted ± 1.977% 99.200 3.966% 99.700% 96.898% 99.000% ±4 Sigma 99.985% 60.284% 15.997% 99.099% 0.570% 93.000% 99.99379 (1) = 99.949% 99.5σ) 1 10 80 100 150 300 1.319% 50.961% 60.973% 99.753% 0.

Six Sigma Overview 1 What Is Cost of Poor Quality (COPQ)? 1 1 1 1 1 1 1 1 The cost of finding and fixing defects Failing to meet customer expectations the first time A missed opportunity for increased efficiency The potential for higher profits Loss in market share Increase in cycle time Labor associated with ordering replacement material Costs associated with disposing of defects 16 .

COPQ Test Yield vs.000 0.000 $70.000 $110.5% 85.000 $90.000 $80.5% 90.9 0. COPQ $130.875 0.Six Sigma Overview Traditional Metrics Equipment Util.825 0.000 $130.000 80.0% 92.925 0.000 $120.0% 82.5% Equipment Utilization Test Yield 17 .000 $110.000 $60.0% 87.975 1 $100.000 $120.000 COPQ COPQ $100.95 0.85 0.000 $70.000 $80.000 $60. vs.000 $90.

000 $1.00 30.000 $75.000 $450. COPQ COPQ COPQ $300.000 $75. COPQ $450.00 90.000 $225.Six Sigma Overview Six Sigma Metrics Sigma Level vs.000 $375.50 $300.00 Sigma Level Cycle Time (Minutes) 18 .75 5.00 4.000 $150.50 3.000 Cycle Time vs.000 $150.00 1.000 $225.75 2.000 $375.25 4.00 120.00 60.000 $0.

the COPQ can be as high as 25% of total sales! 19 .Six Sigma Overview For an average company.

20 .

Six Sigma Overview 1 What Is Cost of Poor Quality (COPQ)? 1 1 1 1 1 1 1 1 The cost of finding and fixing defects Failing to meet customer expectations the first time A missed opportunity for increased efficiency The potential for higher profits Loss in market share Increase in cycle time Labor associated with ordering replacement material Costs associated with disposing of defects 21 .

22 .

Six Sigma Overview Indicators of COPQ 1 Low Yield Rate 1 High Customer Failure Rate 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 (PPM) Incoming Product Quality Problems Unpredictable Quality Poor Process Capability (Cp. Cpk) Measured System Error High Past Due to Customer High Maintenance Costs Low Machine Utilization Process Downtime High Operating Costs High Scrap/Rework Costs High Inventories (WIP) Long Cycle Times Unpredictable Product Performance Capacity Constrained High Product Volume Internal Perceived Poor Quality External Perceived Poor Quality 23 .

Six Sigma Overview Indicators of COPQ 1 Low Yield Rate 1 High Customer Failure Rate 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 (PPM) Incoming Product Quality Problems Unpredictable Quality Poor Process Capability (Cp. Cpk) Measured System Error High Past Due to Customer High Maintenance Costs Low Machine Utilization Process Downtime High Operating Costs High Scrap/Rework Costs High Inventories (WIP) Long Cycle Times Unpredictable Product Performance Capacity Constrained High Product Volume Internal Perceived Poor Quality External Perceived Poor Quality 24 .

EMC Six Sigma Approach Objectives 1 To know the EMC approach to deploying Six Sigma 1 To know the components and importance of the implementation strategy To know the components and importance of the application strategy 1 25 .

EMC Six Sigma Approach Implementation Strategy 1 Strategic Infrastructure 1 Tactical Infrastructure 1 Operational Infrastructure Application Strategy 6σ 1 Measure 1 Analyze 1 Improve 1 Control 26 .

The CEO makes a statement of support and expectations. Top management “buys in” to quality improvement. Implementation responsibility is turned over to the Quality VP or leader.EMC Implementation Strategy 1 Traditional “Quality” program implementation 1 1 1 Need for quality improvement is recognized. Improvement is expected. All employees are trained in basic quality tools. 1 1 1 27 .

EMC Implementation Strategy STRATEGIC LEVEL 1 Organizational Leadership 1 Executives 1 Six Sigma Deployment Plan 1 Executive Steering Committee 1 Master Black Belts 1 Tactical Management 1 Operational Managers 1 Support Managers TACTICAL LEVEL 1 Six Sigma Project Teams 1 Champions 1 Black Belts 1 Team Members 1 Stakeholders OPERATIONAL LEVEL 1 Operational Work 1 Operators 1 Support Staff 1 Six Sigma Institutionalization 1 Green Belts 1 Yellow Belts Complements The Established Infrastructure. It Does Not Replace It! 28 .

EMC Implementation Strategy Strategic Level 1 Steering committee 1 Defines Six Sigma Initiative objectives 1 1 1 Business analysis based on strategic objectives Analysis/revision of existing business performance metrics Establishes targets for deployment throughout the organization 1 Identifies and defines initial Six Sigma application projects 1 1 Assigns Champions Assigns Black Belts/Green Belts 1 1 Reviews Six Sigma projects Reviews and revises strategic objectives and business performance metrics Champion Training Aligns Strategic Decisions With Six Sigma Methodology. 29 .

controls execution. and alleviates roadblocks for the 6σ projects in his area of responsibility Reporting Lines: 1 Is part of the functional organization and reports directly to the 6σ leader 1 Is a member of the organization’s 6σ leadership team Responsibilities: 1 Selects projects. controls execution. and implements and realizes gains (bottom line linkage) 1 Owns the “execution” portion of Black Belt/Green Belt certification 1 Obtains the needed project resources and eliminates roadblocks 1 Drives the cross-functional coordination of projects 1 Participates in all project reviews 1 Owns the Black Belt/Green Belt selection 1 Is the boss of the Black Belt/Green Belt (direct or dotted line) 1 Provides reward and recognition Time Commitment: 1 Two days/week per 10 projects managed (20% to 80% based on organization) 30 .EMC Implementation Strategy Champion Roles and Responsibilities Roles: 1 Is responsible for coordination of the business roadmap to achieve 6σ 1 Selects projects.

and coach of Black Belts and others in the organization 1 Brings broad organization up to the required 6σ competency level. 1 Is a member of the 6σ leadership team and the steering committee Responsibilities: 1 Mentors and coaches Black Belts 1 Develops and conducts several forms of training 1 Owns the 6σ technical development roadmap 1 Provides higher education of Black belts and Master Black Belts 1 Brings the entire organization to the 6σ level of competency 1 Is the custodian of the purity of the method  no compromising 1 Transfers lessons learned 1 Owns “knowledge” certification of Black Belts 1 Finds outside expertise/help when required 1 Networks with other 6σ organizations Time Commitment: 1 Must be 100% dedicated 31 . trainer.EMC Implementation Strategy Master Black Belt Roles and Responsibilities Roles: 1 Is a mentor. is cross functional. Reporting Lines: 1 Is generally a central resource.

and Functional Manager 1 May be instructed to support any Six Sigma project as a high priority Minimum Training Requirement: 1 Four-hour overview 1 Additional training from a Six Sigma Belt 32 . Time Commitment: 1 Is defined by the Six Sigma Belt. Some may evolve to the Black Belt level of knowledge and practice.EMC Implementation Strategy Team Member Roles and Responsibilities Roles: 1 Participates on the project teams and supports the goals of the project. typically in the context of his existing responsibilities Responsibilities: 1 Performs his normal job and supports the activity of the project as it relates to that particular job 1 Learns the 6σ methodology as it applies to the particular project 1 Continues to learn and practice the 6σ methodology and tools after project completion. Champion.

Training Requirement: 1 Four-hour overview 33 .EMC Implementation Strategy Stakeholder Roles and Responsibilities Roles: 1 Agrees with the project selection and expected results 1 Supports the Black Belt/Green Belt in the organization and takes the necessary actions to realize the gains Responsibilities: 1 Approves the potential savings from the project (pre R0) 1 Participates in the project identification and selection process 1 Owns the development and implementation of actions to realize the savings 1 Provides team resources 1 Ensures that 6σ training is implemented in the organization 1 Participates in 6σ reviews Time Commitment: 1 As needed Min.

EMC Six Sigma Approach Implementation Strategy 1 Strategic Infrastructure 1 Tactical Infrastructure 1 Operational Infrastructure 6σ Application Strategy 1 Measure 1 Analyze 1 Improve 1 Control 34 .

EMC Application Strategy What Tool(s) Do You Need for Your Project? 6σ 5σ 4σ 3σ 1 to 2σ 35 Tools: Design for manufacturability Design for Six Sigma. check sheets. fishbones. 6σ tolerancing. flowcharts. product scorecard Tools: Process characterization (mapping. brainstorming. control charts) Tools: Common sense Tribal knowledge . etc…) Process optimization (DOE. MSA. etc…) Tools: Seven basic tools (paretos. histogram.

EMC Application Strategy Black Belt/Green Belt Certification 1 Attend all weeks of classroom training 1 Complete a Six Sigma project successfully 1 1 1 Demonstrate knowledge and apply tools Achieve the project objectives Shows financially measurable impact 1 Complete the measure phase of a second project (Black Belts only) 36 .

multi-vari. hypothesis testing.EMC Application Strategy 1 Define project scope 1 Validate measurement systems Measure 1 Establish initial capability for Ys 1 Process exploration of all potential Xs 1 Characterize the response and analyze the raw data Analyze Bimodal? Skewed? Is the problem with m or s2? 1 Use graphical analysis. and basic statistical tools to identify the likely families of variability 1 Improve 1 Identify the likely Xs 1 Use the design of experiments to find the critical few Xs 1 Move the distribution (shift m) 1 Shrink the spread (decrease s2) 1 Confirm the results Control 1 Mistake-proof the process 1 Tolerance the process 1 Measure the final capability 1 Place appropriate process controls on the critical Xs 1 Document the effort and results 37 .

Your presentation should consist of approximately 8 to 10 slides. 38 1 . Use these tools to move your project forward. 1 Please allow 10 minutes for the presentation itself and five minutes for a brief question/answer session.EMC Application Strategy Project Reviews 1 Each phase has a list of potential project application tools. We are here to help you with both the application and the underlying concept. 1 Local and Corporate Project Reviews 1 1 Present only the tools that are pertinent or of interest to the audience during your reports. please make sure you clearly understand and can demonstrate its usage. 1 If the tool is not appropriate. Your presentation should take no longer than 15 minutes.

1 11 .1 11 .11 -1 SL=1 11 .1 1 .1 11 .11 1 Short-Term Capability Cp CPU CPL Cpk Cpm 11 .EMC Application Strategy Phase 1: Product Measurement Part YTP X1.1 .1 1 .1 1 .1 1 .11 11 1 1.1 1 .1 1 .11 X=1 11 .1 1 .1 PPM>USL Exp Obs PPM<LSL Exp Obs 111 111 111 111 111 11 111 11 Perc ent Gage R&R Repeat Reprod Part-to-Part Part ID 1 1 1 1 1 1 1 1 1 1 1 39 .1 1 .1 11 .1 1 .11 1 1 1 1 1 1 1 1 1 1 1 1 1 .1 1 .1 1 .1 1 1 1 By Part Mean Mean+1 s Mean-1 s s 1 11 . … .1 1 . YN Process Capability Analysis for C1 Lower Spec Upper Spec Gage R&R (ANOVA) for Measure Gage name: Date of study: Reported by: Tolerance: Misc: 1 .1 1 .11 R=1 11 . XN Operation Verify Y1.1 .1 1 .1 1 .11 1 11 1 11 .1 1 S am ple Mean 1 .1 1 .1 By Operator Oper ID Components of Variation %Total Var %Study Var 1 .11 11 .1 11 . … .1 Xbar Chart by Operator 1 1 1 Operator*Part Interaction Operator 1 1 1 1 SL=1 11 .1 1 .11 1 11 .1 1 .1 1 .1 1 .1 11 1.1 1 .11 1.1 1 .1 1 .1 1 .1 11 .11 %>USL Exp Obs %<LSL Exp Obs 1.1 1 11 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 SL=1 11 .1 1 .1 1 .1 * Targ USL LSL k n * 1.1 .1 1 .11 11 11 .1 11 11 .111 -1 SL=1 1 .11 1 Av erage Part ID R Chart by Operator 1 1 1 1 1 1 1 1 1 1 1 1 1 Sam ple Range 11 .1 1 .1 .1 1 .1 11 .

µ. Application Tools 1 Project Selection 1 1  *Problem statement and project status *Project assessment chart (Metric. RTY) Graphical tools (histograms. fishbones Data collection system Attribute/Variable gauge studies Capability (Cpk. DPU. you should address Regardless of the tools used. you should address each of these questions during your Session 11 each of these questions during your Session Review: Review: 1) What is your practical problem statement  1) What is your practical problem statement  what are you trying to fix or avoid? what are you trying to fix or avoid? 2) What is the business impact? 2) What is the business impact? 3) Who is the customer (internal/external)? 3) Who is the customer (internal/external)? 4) What are the Ys? 4) What are the Ys? • • How did you determine them? How did you determine them? • • How are you measuring them? How are you measuring them? • • How good is the measurement system? How good is the measurement system? • • Have you done a Gage R&R? Have you done a Gage R&R? 1 Process Exploration 1 1 1 1 Measurement System(s) Analysis (MSA) 1 1 Capability Assessment (on each Y) 1 1 1 Progress Summary 1 1 1 5) Does this project have applications in other 5) Does this project have applications in other areas? (tree of opportunity) areas? (tree of opportunity) 6) Is this aatechnology or control problem? 6) Is this technology or control problem? 7) Did you develop aaprocess flow chart? 7) Did you develop process flow chart? 8) Do you have adequate resources to complete 8) Do you have adequate resources to complete the project? the project? 40 1 Completed “Local Project Review” * Note: Required reports .Session 1. σ) *Conclusion(s) *Issues and barriers *Next steps Regardless of the tools used.doc) Process flow diagram XY matrix. PFMEA. σ level.

1 I I I I Actual (LT) Capability Process Tolerance 1 11 1 1. 1 1111 . 11 . 1 11 .1 11 .111 11 . 1 1. 1.USL Z.111 11111 11111 .1 11 . . 1 1111 . 1 11 . 11 11 1 111 11 Potential (ST) Capability Process Tolerance 1 11 1 1.LSL P. 1 I I I I I 1 11 1 1. .1 Capability Indices ST Mean StDev Z.USL P.1 11 .1 11 . 1 I I 1 11 1 1.1 X=111 . .Total Yield PPM Cp Cpk Pp Ppk 1 11 1 1. 1111 . 1111 . Xbar and S Chart UCL=111 . 11 11 1 11 1 11 . 1 11 .1 1 1 l Al le ib s X1 os P Xs X2 X5 X6 X4 Xs X3 Piece e bl a X1 ob r P X5 41 .1 Impurity 11 .EMC Application Strategy Phase 2: Product Performance Analysis Capability Analysis Report 1 Process Capability for C1 : 11 1 11 1 11 1 11 1 11 1 Subgroup1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 UCL=11 . 1111 .Bench Z. 11111 11111 .11 LCL=1111 . 1111 . LT 1 11 1 1. 1111 . 11111 11111 .11 S=11 .1 11 .1 LCL=111 .LSL Z. 1 I 11 1 11 1 11 1 11 1 Specifications Specifications Data Source: Time Span: Data Trace: Box Plot Analysis 11 . 1111 .Shift P.

as described in the measure phase. DPU. s) 3) How much of the problem.doc) 1 Process Capability Analysis 1 1 1 Regardless of the tools used. are you going after? 4) Have you reduced the likely Xs to aanumber that 4) Have you reduced the likely Xs to number that can be experimented with? can be experimented with? 5) What are your next steps? 5) What are your next steps? 6) Do you have adequate resources to complete 6) Do you have adequate resources to complete the project? the project? 1 Progress Summary 1 1 1 *Conclusion(s) *Issues and barriers *Next steps 1 Completed “Local Project Review” *Note: Required reports 42 . m. you should address each of these questions during your Session 22 each of these questions during your Session Review: Review: 1) What is the statement of the statistical 1) What is the statement of the statistical problem? problem? 2) Is the response discrete or continuous? 2) Is the response discrete or continuous? • • What does the distribution look like? What does the distribution look like? • • Has this helped you reduce the potential Xs? Has this helped you reduce the potential Xs? Distribution assessment Data transformations Capability analysis 1 Graphical Analysis (X Search) 1 Boxplots/scatterplots/other graphs 1 Identification of high-priority Xs 1 1 Capability (Cpk. Application Tools 1 Project Status 1 1 *Problem statement and project status *Project assessment chart (Metric. are you going after? measure phase.Session 2. as described in the 3) How much of the problem. you should address Regardless of the tools used. RTY) Graphical tools (histograms. s level.

Feed Rate 1 2 3 4 5 6 7 8 .015IPR RAPID .015IPR RAPID Factor B Direction RIGHT RIGHT LEFT LEFT RIGHT RIGHT LEFT LEFT Factor C Location HEADSTOCK HEADSTOCK HEADSTOCK HEADSTOCK TAILSTOCK TAILSTOCK TAILSTOCK TAILSTOCK Response 1 ∆ Location 230 215 Response 200 185 170 A B Interation Plot for Response A 235 225 215 205 -1 1 -1 1 Centerpoint 240 Mean 2 4 Fa c to E RESPONSE 220 200 180 160 140 22 6 195 185 175 165 155 145 -1 1 18 Factor G 14 r B 43 .EMC Application Strategy Phase 3: Performance Improvement Design of Experiments Main Effects for Response Centerpoint -1 1 -1 1 Run Factor A No.015IPR RAPID .015IPR RAPID .

X3. …) Updated PFMEA Progress Summary 1 1 1 *Conclusion(s) *Issues and barriers *Next steps Completed “Local Project Review” * Note: Required reports 44 .xls 1 Problem statement & project status 1 Project assessment chart (Metric.Session 3. X2.doc) Remaining Session 1 and 2 Deliverables Design of Experiments 1 DOE Regardless of the tools used. Application Tools Project Selection See ProjPlan. you should address each of these questions during your Session 3 Review: 1) Were all the potential Xs measurable and controllable for an experiment? 2) Are the vital few Xs statistically significant? 3) Are the effects of practical significance? 4) How much of the problem have you explained with these Xs? 5) How much unexplained error exists? 6) Are any new improvements transferable across the business? 7) Is an action plan for spreading the best practice in place and appropriate? 8) Do you have adequate resources to complete the project? 9) What are the next steps? planning sheet 1 DOE factorial experiments 1 Y = F (X1.

9 5 9 8 .1 5 9 9 .5 E W M A C h a r t fo r L e n g th U C L = 6 0 1.5 EWMA X = 6 0 0 .2 6 0 0 .9 Sample Number 45 .2 U C L = 6 0 1.5 0 50 10 0 L C L = 5 9 8 .5 L C L = 5 9 8 .EMC Application Strategy Phase 4: Process Control Cause System Cause Effect 1 Eliminate Xs 1 Automate Xs 1 Control Xs 6s Spec Range of Y 10 9 8 7 6 5 σ = ∑ N i =1 (X i − μ) 2 N High Spec Low Spec -1 MHz 1 Statistics Standards Realistic Tolerance on X EWMA Chart for Length 6 0 1.1 X = 6 0 0 .

EMC Application Strategy 1 Final project update: Before BB/GB can be certified. they are required to submit in compressed electronic format: 1 1 1 1 A final report A copy of all presentations All application tools used throughout the project Supporting data files used throughout the project 1 Complete a local management review at their facility before the corporate review. 46 .

47 .Basic Concepts Objectives 1 To understand the fundamental equation that drives Six Sigma 1 To know how the difference between First Time Yield (FTY) and Rolled Throughput Yield (RTY) in measuring process performance 1 To know the DPU Concept and how is related to RTY.

48 .Fundamental Equation The Fundamental Equation That Drives Six Sigma Y = f(x) The Output Is A Function Of The Inputs And The Process.

X ? 1 N s s s s s Input process variables Independent Cause Problem Control 49 . .Fundamental Equation The Fundamental Equation Y= f(x) What is Y? Output Dependent Effect Symptom Monitor What are X . .

etc. fishbones. fishbones.) 50 Process characterization and optimization Design for manufacturability 1 1 1 1 Seven basic tools Design for Six Sigma (paretos.Fundamental Equation Output Variation Y = f(x) Sources of Variability Incoming Parts and Materials Process characterization and optimization Logic and intuition 1 Design 1 Process Capability Process characterization and optimization Logic and intuition Seven basic tools (paretos. maps. etc.) . maps.

Six Sigma Metrics Individual Parts per million.Ppk Defects per unit. ppm Process capability Cp.Cpk. Pp. DPMO Z-score or “sigma value” Product Rolled throughput yield. RTY Yield 51 . DPU Defects per million opportunities.

First Time (End of Line) Yield by Week 100 98 Weekly Yield (%) 96 94 92 90 Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 7 Wk 8 Wk 6 Wk 9 Wk 10 Wk 12 Wk 13 Wk 11 Wk 14 Wk 15 FTY = P U * 100% Where: FTY = First Time Yield (test yield) P= Number of units that pass the test U= Number of units tested 52 .Understanding Yield 1 First Time Yield (FTY) is a common output metric (Y metric) used to identify and target problem areas.

Expected Relationships 25 20 15 10 5 0 80 90 100 9 8 7 6 5 4 3 2 1 0 80 90 100 Test Yield Scrap Profit Test Yield 53 .Understanding Yield 1 FTY is not a good predictor for improving profits and/or decreasing scrap.

Understanding Yield 1 “Hidden” costs in the “Real Factory” 1 More manpower 1 Extra floor space 1 Longer cycle time 1 More raw material 1 More $$$$ Good Units _______ Total units tested FTY Te st Operation 1 Te st Operation 2 Te st Product 54 .

Understanding Yield 1 “Hidden” costs in the “Real Factory” H 1 More manpower id d 1 Extra floor space e 1 Longer cycle time n 1 More raw material F 1 More $$$$ a ReWork or Scrap ct o ry Good Units _______ Total units tested ReWork or Scrap FTY Te st Product 55 Failure Analysi s Te st Failure Analysi s Te st Operation 1 Operation 2 .

Defects vs. Defectives
1 Defects:
1

Countable failures associated with a single unit. A single unit can be found to be defective, but it may have more than one defect. Completed units that are classified as bad. The whole unit is said to be defective regardless of the number of defects it has.

1 Defectives:
1

First time yield = non-defectives / total units.
56

Defects per Unit (DPU)
1 Unit: The entity that is transformed by value-added

activities. Typically, it is defined as the “product” that is sold to the customer.

Defects DPU = Units Produced
1 DPU can be applied at both the individual process-

step level and the product level.

57

Example of DPU
1

At the part level:
1

Pedal assemblies arrive at our plant weekly to support production needs. The following defect data is collected on a sample basis. It was collected over the previous 12- month period for 500 total samples (n = 500).
1 1 1 1

Reflector missing Threads marred Pedal bent Total

25 15 10 50

1

The average number of defects per unit (pedal) is:

Total Defects 1 1 DPU = = = 11 . Units 11 1

(continued)
58

Example of DPU -cont.40 DPU DPU DPU DPU DPU 59 .10 0.15 0. 1 At the product level: 1 DPUs of sub-assemblies can be summed to obtain the total number of defects found in the finished unit.05 0.10 0. DPUtotal = ∑ DPU sub −assembly ( i ) i =1 n 1 Here are defect rates for four sub-assemblies that make up the final product: 1 1 1 1 A B C D Product 0.

Rolled Throughput Yield (RTY) 1 RTY: Measuring the probability defect-free unit. or converting from DPU RTY = e −DPU of obtaining a 1 Two calculations: RTY = Yield process a × Yield process b × ⋅ ⋅ ⋅ × Yield process n 1 The second method is derived from a Poisson distribution model. 60 . It shows there is a relationship between DPU and RTY. It is a valid approximation for defect rates of 10% or lower. instead of first time yield.

1 .Rolled Throughput Yield Example The pedal sub-assembly process is outlined below. 1 .03 . We have identified the DPU associated with each process step.03 Torque R pedal to 5 ft lbs DPU = 0. 1 Handtighten R pedal DPU = 0. 1 = 1% 1 61 *** Good for DPU < 0. 1 1% 1 11 . 1 1% 1 11 . 1 .02 Process Step Select Part Hand Tighten L Hand Tighten R Torque L Torque R Total Handtighten L pedal DPU = 0. RTY = e − dpu = e −11= 1 % *** 1 or RTY = 11 × 11 × 11 × 11 × 11 . 1 . otherwise use product of step yields . 1 1% 1 11 .01 Torque L pedal to 5 ft lbs DPU = 0.01 DPU Step Yield 11 . 1 1% 1 11 .1 . 1 1% 1 11 . Select R and L part #s from bin location DPU = 0.

01 Probability % 37 60 90 99 62 . Process RTY: Yield prior to Capability inspection and test Operation: DPU = 1 Verify: 9/10 Good Outgoing Quality Good FTY: Yield after inspection and test RTY = 37% based on defects FTY = 90% based on non-defectives Re-Work Defects Scrap Defects Bad Probability of a defect free unit (RTY) as a function of DPU’s. DPU 1 .Understanding First Time Yield and RTY 1 Rolled Throughput Yield (RTY) is a measure that is based on defects that occur throughout the process.5 .1 .

the lower the RTY. parts. 63 . RTY = Yield process a × Yield process b × ⋅ ⋅ ⋅ × Yield process n RTY = e −DPUtotal =e − ∑ DPU process ( i ) i =1 n 1 The higher n (the complexity) is. 1 DPMO is for Benchmarking and project selection and DPU for Six Sigma Project Metric. and processes of differing complexities.Defects per Million Opportunities (DPMO) 1 It is sometimes helpful to compare products. We would expect products/processes of higher complexity to have a lower RTY (and “sigma value”).

1 1 . Both would be indicators of overall product/process complexity.” product. We call this measure an “opportunity.The Calculation 1 To compare products/processes of differing complexity. “measure” of complexity is used uniformly.1 1 1 Total Opportunit ies 64 . or the number of process steps needed to assemble a product. 1 Opportunities can be defined as the number of parts in the 1 Other definitions of “opportunity” can be applied as long as the DPMO = Total Defects × 1 1 . we must start with a measure of complexity.

189 82.04 % 0.Understanding Opportunities 1 Which product is performing better.78 % 65 .030 97. the pencil or the blender? Pentel Pencil Defects per Unit (DPU) Rolled Throughput Yield (RTY) Blender 0.

405 RTY = e . 66 .030 97.189 82.00200 2000 4.405 0.04 % 15 0.Understanding Opportunities 1 Which product is performing better.78 % 97 0.dpu dpu = .ln(RTY) Note: Assumes the defects were collected in the long term.dpu ln(RTY) = . the pencil or the blender? Pentel Pencil Defects per Unit (DPU) Rolled Throughput Yield (RTY) Opportunities DPU/Opp DPMO Product Sigma Level Blender 0.00195 1948 4.

Measurement Systems Analysis (MSA) Attribute Gage Repeatability and Reproducibility (Attribute Gage R&R) Task: You have 60 seconds to document the number of times the 6th letter of the alphabet appears in the following text. 67 .

Since the foremost in the eyes of farm owners. Since the forefathers of the farm owners trained the farmhands forefathers of the farm owners trained the farmhands for first-class farms in the fatherly handling of farm for first-class farms in the fatherly handling of farm livestock.Inspection Exercise Task: You have 60 seconds to document the number of times the 6th letter of the alphabet appears in the following text. 68 . fundamental farm management. the farm owners feel they should carry on livestock. The necessity of training farmhands for first-class The necessity of training farmhands for first-class farms in the fatherly handling of farm livestock is farms in the fatherly handling of farm livestock is foremost in the eyes of farm owners. the farm owners feel they should carry on with the family tradition of training farmhands of first with the family tradition of training farmhands of first class farmers in the fatherly handling of farm class farmers in the fatherly handling of farm livestock because they believe it is the basis of good livestock because they believe it is the basis of good fundamental farm management.

Attribute R&R 1 An attribute R&R is used to: 1 Determine if operators across all shifts. use the same criteria to determine “good” from “bad” Assess your inspection or workmanship standards against your customer’s requirements Identify how well these operators are conforming to themselves Identify how well these operators are conforming to a “known master.” which includes: 1 1 1 1 1 How often operators decide to ship truly defective product How often operators do not ship truly acceptable product Training is needed Procedures are lacking Standards are not defined 69 1 Discover areas where: 1 1 1 . etc. all machines..

4 ppm (6σ. short term) 70 . DPU 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 .Increasing Yield through Inspection DPUin In sp ec t DPUremoved 1 1 1 1 1 1 1 1 1 1 DPUescaping DPU removed Efficiency = DPU in Starting Defects per Unit.1 1 1 1 1 1 1 1 1 1 1% 1 1% 1 1% 1 1% 1 1% 1 1% 1 1% 1 Inspection Efficiency Number of consecutive inspectors required to achieve an escaping defect rate of 3.

50% of the parts should be defect free. 1 50% of the parts in your study should have defects.How to Run an Attribute R&R Step 1: Select about 30 parts from the process. Step 3: Have each operator independently and in random order assess these parts and (continued) determine whether or not they pass or fail (judgment of good or bad). 71 . If possible. select borderline (or marginal) good and bad samples. 1 1 Step 2: Identify the operators who should be qualified.

Step 5: Use the AttrR&R2. Step 4: Repeat Step 3 for a second trial. Step 6: Document and implement appropriate actions to improve the inspection process (if necessary). 72 .xls spreadsheet to report the effectiveness and efficiency of the attribute measurement system (operators and the inspection process). Step 7: Re-run the study to verify the improvement.How to Run an Attribute R&R -cont.

Example
Attribute Gage R&R Effectiveness
Enter Pass/Fail, 0/1, etc.
5

Blank Form: AttrR&R2.xls
SCORING REPORT
DATE: Today's Date NAME: Green Belt PRODUCT: ABC 123 BUSINESS:Division A
Operator #2 Try #1 Try #2 pass pass pass pass fail pass fail fail pass fail pass pass fail fail pass pass pass pass fail fail

Attribute Legend (used in computations) 1 pass 2 fail

Title Block

Known Known Population Workmanship or Sample # Attribute Customerpass Result 1
2 3 4 5 6 7 8 9 10 pass fail fail fail pass pass pass fail fail

Operator #1 Try #1 Try #2 pass pass pass pass fail fail fail fail fail fail pass pass fail fail pass pass pass pass pass pass

Operator #3 Try #1 Try #2 fail fail fail fail Operator fail fail fail fail Results fail fail pass pass fail fail pass pass pass pass fail fail
73

Data Entry

Spreadsheet Results with Calculated Confidence Intervals
Statistical Report - Attribute Gage R&R Study

% of time trial 1 agrees with trial 2 for each operator

DATE: NAME: PRODUCT: BUSINESS:

Today's Date Black Belt ABC 111 Division A

% of time each operator agrees with the standard

% Appraiser %Score vs Attribute Source Operator #1 Operator #1 Operator #1 Operator #1 Operator #1 Operator #1 Total Inspected 1 1 1 1 1 1 1 1 1 1 1 1 # Matched 1 1 1 1 1 1 1 1 False Negative (operator rejected good product) 1 1 1 False Positive (operator accepted bad product) 1 1 1 Mixed 1 1 1 1 % UCL 1 1 11 1. % 1. % 11 1 11 1. % 1. % 11 1. % 11 1. % 11 Calculated Score 1 11 1. % 1. % 11 1 11 1. % 1. % 11 1. % 11 1. % 11 1 % LCL 1 1. % 11 1. % 11 1. % 11 1. % 11 1. % 11 1. % 11
Statistical Report

74

Summary
1 An attribute Gage R&R must be performed to

ensure the integrity of attribute data.
1 Operators must inspect both known “good”,

“borderline” and “bad” parts:
1 Attribute measurement systems can be improved by

establishing standards and by operator training.

75

1 Measurement Systems Analysis (MSA) Variable Gage Repeatability and Reproducibility (Variable Gage R&R) 76 .

we must validate the integrity of the data we are going to use in the decision-making process. 1 It is also a great tool for comparing two or more measurement devices or two or more operators against one another. 1 The study of measurement systems will provide information as to the % of variation in your process data that comes from error in the measurement. 1 Measurement Systems Analysis should be used as part of the criteria required to accept and release a new piece of measurement equipment to manufacturing.Why Study Measurement Systems? 1 Before you spend time and effort on a Green Belt project. 77 . 1 It should be the basis for evaluating a measurement system that is suspect of being deficient.

Possible Sources of Variation Observed process or product variation Actual process or product variation Long-term variation Short-term variation 2 Measurement variation Due to measurement device (Gage) Repeatability Linearity Due to operators Reproducibility σ 2 total = σ 2 product + σ measurement Variable R&R study Calibration program and Gage selection Stability Accuracy 78 .

Repeatability Defined Repeatability of the instrument is a measure of the variation obtained when one operator uses the same device to “repeatedly” measure the identical characteristic on the same part. When no operator is present. σ 2 total = σ σ 2 total = σ 2 2 product + σ 2 2 measurement system 2 product + σ repeatability + σ reproducibility 79 . True value for one part Quantifies the repeatability of the measurement system Repeatability Performance Characteristic A variable R&R study will quantify the repeatability of the measurement system. repeatability part accounts for repeat measurements taken on an automated piece of test equipment.

Reproducibility may also be used to quantify differences caused by different measuring devices (substitute measuring device for operator) Reproducibility Operator B Device B Operator A Device A Quantifies differences between the operators (devices) Performance Characteristic A variable R&R study will quantify the reproducibility of the measurement system. σ 2 total = σ σ 2 total = σ 2 2 product + σ 2 2 measurement system 2 product + σ repeatability + σ reproducibility 80 .Reproducibility Defined Reproducibility is the variation in the averages of measurements made by different operators using the same device when measuring identical characteristics of the same parts.

The Methodology Step 1: Collect 10 samples that represent the full range of longterm process variation. identify the operators who perform measurements on these parts daily. Step 3: Set up the Minitab data-collection sheet for the R&R study. Step 4: Ask the first operator to measure all the samples once in random order. in which the operator does not know the identity of each part. Blind sampling. Step 5: Have the second and then the third operators measure all the samples once in random order. Step 2: Calibrate the Gage or verify that the last calibration date is valid. In addition. All operators have now measured the samples once (this is Trial 1). should be used to reduce human bias. (continued) 81 .

Step 7: Enter the data into Minitab. 82 . Determine follow-up actions.The Methodology -cont. Step 8: Use Minitab to analyze the data by assessing the quality of the measurement system. Step 6: Repeat Steps 4 and 5 for the required number of trials. Step 8: Analyze the Minitab output.

They use a steel rule with an end stop to make this measurement.Variable Gage R&R Example Situation: In our bicycle factory. The rule measures to the nearest 0. 83 .There are three operators who cut tube stock and record this data. Task: Determine the adequacy of the measurement system.01". the quality department measures the length of the tube stock used to form the handlebars on a sample basis.

2 44. Mary. To determine the full range. In addition.75 would expect 95% of the Mean 44.1" and a standard USL 44. Pat. so we LSL 43.3" (± 2σ). let’s look at the capability analysis for these parts.4 study.10 between 43.0 44.9" and 44.Example 1 Step 1: Collect 10 samples that represent the full range of long-term process variation.10”.3 44. 84 . identify the operators who use this instrument daily. and Joe are the operators who measure this parameter and so should be selected as part of the measurement study.10 parts produced to be StDev 0.8 43. Process Capability Analysis for Bikebar Length The parts have a mean of LSL USL 44.1 44.9 44.25 deviation of 0. We should use parts in this range for the 43.

Create the R&R data-collection sheet for 10 parts. Gage R&R Using Minitab 1 Step 2: Calibrate the Gage or verify that the last calibration date is valid.Example. Column Headings: Column 1: PartID (1 to 10) Column 2: Operator (1 to 3) Column 3: Operator Name Column 4: Trial (1 to 2) Column 5: Measure 85 . each measured two times by three operators. we could measure some standard lengths to ensure that the steel rule is not biased. 1 Step 3: Set up the Minitab data-collection sheet for the R&R study. In this case.

Step 5: Have the second and then the third operator measure all the samples once in random order. 1 1 86 . Pat and then Joe measure all of the parts in random order. Step 6: Repeat Steps 4 and 5 for the required number of trials. Mary measures all of the parts in random order. to reduce human bias. The operator should not know the identity of each part.Example. Mary then Pat and then Joe measure the parts a second time in random order. All operators have now measured the samples once (this is Trial 1). Gage R&R Using Minitab 1 Step 4: Ask the first operator to measure all the samples once in random order.

87 .Minitab Worksheet 1 Step 7: Enter the data into Minitab.

5. Enter 5. Operator.15 and 0. the process tolerance 88 .25 the process tolerance 0.25 0.5 comes from ±0. 1 Stat>Quality Tools>Gage R&R Study>Options Enter PartID.5 comes from ±0. 1 1 1 1 5. normal curve.Run the Analysis 1 Step 8: Use Minitab to analyze the data.15 standard deviations represent 99% of the represent 99% of the normal curve. and Measure.15 standard deviations 5.

Gage R&R Output: Graphical 1 Step 9: Analyze the Minitab output. 11 1. 1 11 1. 1 11 1. 11 1. 11 Part ID 1 1 1 1 1 1 1 1 1 1 1 Sample Mean 1. 11 1. LCL= 1 1. 11 Average UCL= 11 . 1 11 . 1 11 Mary Pat Xbar Chart by Nam e Joe Mar y P at Nam e*Part ID Interaction 1. 1 1 R= 111111 . 11 LCL= 11 . 1 11 1. 1 11 . 11 1. 1 11 1. 1 11 . 89 . G age name: Date of study: Reported by: Tolerance: Misc: Gage R&R (ANOV for Measure A) Com ponents of Variation 11 1 Percent %Contribution %Study Var %Tolerance 1. 1. 11 Mean= 11 . 1 11 Name Joe Joe Mar y P at By Nam e UCL= 111111 . 1 11 G age R&R Repeat Reprod Part-to-Part Part ID 1 1 1 By Part ID 1 1 1 1 1 1 1 1 1 1 1 R Chart by Nam e Sample Range 11 . 11 1 Name Joe Mary Pat Graphs! But what do they mean? Let’s investigate each section one at a time. 11 1. 1 11 1. 1 11 .

The Bar Chart 90 .

The Xbar and Range Chart 91 .

and R 92 .Gage R&R. Xbar.

Operator Bias 93 .

A Part-by-Part Look 94 .

1 11 Measure 1. Runchart of Measure by Part ID.Another Graph: Gage Run Chart 1 1 It allows us to visualize repeatability and reproducibility within and between operator and part The center line is the overall average of the parts. Name Gage name: Date of study: Reported by: Tolerance: Misc: 1. 1 11 1. 1 11 1 1 1 1 1 Measure 1. 1 11 1. 1 11 Part ID 1 1 1 1 1 1 95 . 1 11 Joe Mary Pat 1. 1 11 Part ID 1. 1 11 1.

15E-02 %Contribution (of VarComp) 2.54 1.90 11.32 1.35E-03 1.02E-04 1.63 10.070923 0.38E-02 9.18 9.47 12.413572 0.01E-02 1.00 %Tolerance (SV/Toler) 14.Gage Results: Minitab Session Window Source Total Gage R&R Repeatability Reproducibility Name Part-To-Part Total Variation VarComp 1.01E-02 8.419609 %Study Var (%SV) 16.41 98.00 Study Var (5.71 83.86 1.42 10.14 100.56 100.02E-04 6.15*SD) 0.90E-04 8.048129 0.54 97.03E-02 8.45E-03 6.42 82.41 12.73E-05 1.92 96 Source Total Gage R&R Repeatability Reproducibility Name Part-To-Part Total Variation .64E-03 StdDev (SD) 1.052093 0.052093 0.

Gage R&R. Source VarComp Total Gage R&R 1.02E-04 Name 1. The number of groups within your process data that your measurement system can discern.90E-04 Repeatability 8. This is the number of distinct categories this measurement system can distinguish.02E-04 Part-To-Part 6.64E-03  σ1   Total  Dist Categories = RoundDown  *1  1 σ MS     97 .45E-03 Total Variation 6.73E-05 Reproducibility 1. Distinct Categories Number of Distinct Categories = Eight 1 1 The part is in one of these eight zones.

and/or procedure problem. then the Gage is probably not hindering you and you can continue to use it. you should still fix the Gage. you must address this via training and definition of the standard operating procedure. in consultation with the equipment vendor or upon searches of industry literature you find that the Gage technology you are using is “state of the art” and it is performing to its specifications.Handling Poor Gage Capability 1 1 If a dominant source of variation is repeatability (equipment). skill. you need to replace. Evaluate the specifications. repair. or otherwise adjust the equipment. If. 1 1 1 98 . Are they reasonable? If the Gage capability is marginal (as high as 30% of study variation) and the process is operating at a high capability (Ppk greater than 2). If a dominant source of variation is operator (reproducibility). You should look for differences among operators to give you some indication as to whether it is a training.

99 . both graphical and numeric. 1 We will use Minitab output. 1 Measurement error is included with the process variation in any observed “Y.Summary 1 Before you spend time and effort in a Green Belt project.” σ 2 total = σ 2 product + σ 2 repeatability + σ 2 reproducibility 1 When conducting a Gage study. we must validate the integrity of the data we are going to use in the decision-making process. we need parts that are representative of the entire range produced by the process. to assess the capability of the Gage.

Project Selection I
Objectives
1 To understand the importance of project selection to

Six Sigma success
1 To understand the difference between traditional

project selection and Six Sigma project selection
1 To be able to establish a business case

100

Importance of Project Selection
1Dissemination of the Six Sigma culture

depends on news of successful projects having significant business impact.
1Poor project selection is the most

common root cause of delays in completion of Six Sigma projects.

101

Six Sigma vs. Traditional Projects
Traditional Project Selection
1 Selected to optimize performance of one part of the business 1 Implementation of a pre-determined solution 1 Managing the exceptions vs. the norms 1 Lack clarity for project expectations 1 Examples:
1 1 1 1 1

Increase the number of sales Reduce OT in one department Reduce the cost of one operation Improve on-time delivery Reduce the cycle time in one sub-process

1 1 1 1

Create a new Reporting System Reduce the number of nonexpensable expenses Paid Increase total revenue Install new equipment, hardware/software
(continued)
102

Six Sigma vs. Traditional Projects -cont. Projects Show Little or No Business Impact 1 Optimize part of the business at the expense of another 1 1 Decreasing cycle time in a non-bottleneck process Reducing the cost in one area by increasing the cost of another Automating a bad process nets producing defects quicker Increasing the number of products/features sold but not generating additional revenue from sales Reducing the total paid out in expenses by implementing an audit process that costs more than the overage in expenses paid (continued) 103 1 Do not address the root causes of existing problems 1 1 Create more incremental costs than savings 1 1 . Traditionally.

Traditional Projects -cont.Six Sigma vs. 1 Has too large a scope 1 Too 1 Not many insignificant things are distracting the attention of the team enough attention is being focused on things with the most impact 104 .

Traditional Projects Six Sigma Project Selection 1 Establishing a business case for a project 1 Avoids selecting projects with little or no business impact 1 Narrowing the project focus based on a business case 1 1 Avoids scope problems Identifies the most significant areas to impact the business case 1 Defining a project 1 Quantifies the problem and objectives. and outlines the metrics used to determine project success 105 .Six Sigma vs.

Six Sigma vs. and outlines the metrics used to determine project success 106 . Traditional Projects Six Sigma Project Selection 1 Establishing a business case for a project 1 Avoids selecting projects with little or no business impact 1 Narrowing the project focus based on a business case 1 Avoids scope problems 1 Identifies the most significant areas to impact the business case 1 Defining a project 1 Quantifies the problem and objectives.

Establishing a Business Case Business Case 1 The business case establishes the importance of the project to the business in terms of meeting business objectives 1 Components 1 1 The output unit (product/service) for external customer The primary business measure of the output unit for the project The baseline performance of the primary business measure A gap in the baseline performance of the primary business measure from the business objective 1 1 (continued) 107 .

Establishing a Business Case -cont. 1 A business case establishes the need for a project in terms of business objectives 1 Six Sigma business objectives 1 1 1 1 Reduce the cost/unit of a product Decrease defects of a product Increase product yield Decrease the total cycle time of a product (continued) 108 .

Project Selection II Narrowing Project Focus Objectives 1 To know how to identify a narrow project focus that will provide the largest impact to the problem outlined in the business case 1 To be able to evaluate several potential projects objectively using the project desirability matrix 109 .

or folklore. hearsay. and where the need for improvement is substantial.Narrowing Project Focus Comments on Narrowing a Project’s Focus 1 When selecting an initial training project. it is important that we look for high-leverage projects where the return justifies the investment in time and effort. (continued) 110 . 1 Please keep in mind that decisions based on factual data are always better than those based upon intuition.

RTY. etc. inspection) 1 111 .) 1 Narrows projects focused on reducing cost/unit Narrows projects focused on increasing quality or yield Narrows projects focused on decreasing cycle time 1 Defect counts (actual defects. Narrowing Project Focus: 1 Narrowing of the focus must be consistent with the primary business measure in the business case 1 The following data is used in narrowing the project focus: 1 COPQ (re-work. scrap. delay.Narrowing Project Focus -cont. FTY) 1 1 Non-value-added time (re-work.

Attach the cost to business for each re-work and scrap point in the process.Narrowing Project Focus Reducing Cost Analysis to Reduce Project Focus: INPUTS SUB PROCESS SUB PROCESS SUB PROCESS OUTPUT Cost + Cost + Cost + Cost = Cost to Produce 1 Step 1: High-level process map analysis of the COPQ included in the cost to produce 1 1 1 Identify the re-work and scrap throughout the process. VALIDATE THESE COSTS WITH THE (continued) 112 .

5 100.8 60 4.4 14 59 1.8 82.6 61.Narrowing Project Focus Reducing Cost -cont.2 91.5 95.4 77.0 75 5. Analysis to Reduce Project Focus 1Step 2: Pareto analysis of the COPQ 1 COPQ of re-work vs.2 15 1.4 55 4.5 93.2 94.6 87. xx/xx/99 to xx/xx/99 n=1298 1000 100 80 60 500 40 20 0 1 2 3 5 7 4 6 8 rs ory or y ory ory or y o ry ory he o ry Ot t eg t eg teg t eg te g t eg t eg te g 2) Ca Ca Ca Ca Ca Ca Ca Ca (1 1 1 COPQ of each re-work and scrap step 0 Count Percent Cum % 800 61. scrap costs Count All Defects by Category.0 Defect 113 Percent COPQ for each sub process .6 200 15.1 4.7 20 1.

(continued) 114 rejected at start of next process 1 .Narrowing Project Focus Improving Quality Analysis to Reduce Project Focus INPUTS Defects RTY SUB PROCESS SUB PROCESS SUB PROCESS OUTPUT + X Defects RTY + X Defects RTY + X Defects RTY = Defects = RTY 1 Step 1: A high-level process map determines where defects occur throughout the process 1 The volume of re-worked units within sub process. rejected at start of next process The volume of scrapped units within sub process.

Analysis to Reduce Project Focus 1 Step 2: Pareto analysis of defects 1 1 1 1 1 Defects for each model Type of defect Defects by shift Defects by production line Defects by plant Count n=1298 1000 All Defects By Category. xx/xx/99 to xx/xx/99 100 80 60 500 40 20 0 te Ca go ry 1 2 3 4 5 6 7 8 rs or y or y he o ry ory ory ory ory Ot ) t eg teg te g te g te g te g te g Ca Ca Ca Ca Ca Ca Ca 12 ( 0 1 Count Percent Cum % 800 61.4 55 4.1 4.2 15 1.8 60 4.4 14 59 1.2 91.7 20 1.0 75 5.4 77.5 93.5 100.6 200 15.2 94.6 61.8 82.6 87.Narrowing Project Focus Improving Quality -cont.5 95.0 Defect (continued) 115 Percent Defects by machine .

machinery. Analysis to Reduce Project Focus 1Step 3: Assess COPQ for the defects in the narrowed project focus area 1 How much raw material is scrapped due to defects? Re-worked? Re-cycled? What is the cost of the time in labor.Narrowing Project Focus Improving Quality -cont. and raw materials for the scrapped materials due to defects? What is the cost of the time and labor spent re-working defects? What is the cost of the time and labor lost on recycled defects? How do recycled materials impact the final product? VALIDATE THESE COSTS WITH THE COMPTROLLER. 116 1 1 1 1 .

Narrowing Project Focus Reducing Cycle Time Analysis to Reduce Project Focus: INPUTS SUB PROCESS SUB PROCESS SUB PROCESS OUTPUT Cycle Time Time + Time + Time + Time = 1 Step 1: A high-level process map analysis of non-value-added time throughout the process 1 1 1 1 Sub process input and output rates Time spent in delay Time spent in re-work sub processes Time spent in test/inspection sub processes (continued) 117 .

2 94.2 15 1.4 77. Analysis to Reduce Project Focus 1 Step 2: Pareto analysis of non-value-added time 1 Volume of backlog at each delay step Count All Defects by Category.4 55 4.7 20 1.0 Defect 1 (continued) 118 Percent Time spent in delay for each backlog step . xx/xx/99 to xx/xx/99 n=1298 1000 100 80 60 500 40 20 0 te Ca go ry 1 2 3 4 5 6 7 8 rs or y or y he o ry ory ory ory ory Ot ) t eg teg te g te g te g te g te g Ca Ca Ca Ca Ca Ca Ca 12 ( 1 1 Total non-value-added time after the last bottleneck Time spent in each re-work step Time spent in each test/ inspection step 0 1 Count Percent Cum % 800 61.5 93.8 82.5 95.5 100.6 61.4 14 59 1.Narrowing Project Focus Reducing Cycle Time -cont.1 4.0 75 5.2 91.6 87.6 200 15.8 60 4.

Analysis to Reduce Project Focus 1 Step 3: Assess COPQ for the non-value-added time to be eliminated by the project focus area 1 1 What is the inventory cost of the time in delay? How much do re-work steps cost in terms of labor? Equipment? How much do test/inspection steps cost in terms of labor? Equipment? What will be the impact on units sold as a result of the lower cycle time? VALIDATE THESE COSTS WITH THE COMPTROLLER. 119 1 1 1 .Narrowing Project Focus Reducing Cycle Time -cont.

120 . there may be: 1 Business constraints on capital investment in the project Business constraints on resource investment in the project 1 1 For certification only. 1 1 IT MUST BE FEASIBLE TO COMPLETE THIS PROJECT WITHIN FOUR MONTHS. one additional factor must be considered when selecting a project: 1 The project must serve as a learning opportunity. The project should offer the opportunity to use as many tools as possible.Narrowing Project Focus Additional Considerations 1 In addition to the impact to the stated problem in the business case.

Project Selection III Project Definition Problem Statement 1 What is a problem statement? 1 A problem statement describes in specific. To focus the team on a process deficiency To communicate the significance to others 1 What are the purposes of a problem statement? 1 1 121 . It describes the present undesirable situation with clarity and objectivity while avoiding “hidden” solutions. concrete terms what the data have revealed.

It avoids broad and ambiguous categories such as “morale”. and when.” 122 1 It is measurable. It states how often. “productivity. how much. 1 .” “communication.Project Definition Problem Statement 1 Required Criteria for a Good Problem Statement 1 It states the effect. 1 1 It is specific. not why it is wrong. Avoid “lack of” and “due to” statements.” and “training. These always imply solutions. 1 It states what is wrong.

or annoyance. 1 123 . 1 1 It focuses on the pain. 1 The gap may be a change or deviation from the norm. or the customer’s valid requirement or expectation. hurt. standard. It does not imply blame on any person or department. 1 It is stated in an objective manner. either explicitly or implicitly. which may tend to imply a solution.Project Definition Problem Statement 1 Additional Criteria for a Good Problem Statement 1 It focuses on the gap between what is and what should be. It is not stated as a question. The problem statement highlights “how” customers are affected and the areas of discomfort.

Project Definition Problem Statement 1 How are problem statements developed? 1 You should analyze and discuss all data collected through narrowing the project focus. A problem statement should be concise and answer these questions: 1 1 1 1 1 1 Who is impacted by this problem? What is the impact of this problem? When has the problem occurred? How do you know the problem occurs? How many times does the problem occur? 124 .

Project statement:
Fill In the Blanks For Your Project: Fill In the Blanks For Your Project: During ________________________ , ,the ____________________ for During ________________________ the ____________________ for
(Period of time for Baseline Performance) (Period of time for Baseline Performance) (Primary Business Measure) (Primary Business Measure)

_____________ was _____________ . . This gap of ________________ _____________ was _____________ This gap of ________________
(Output Unit) (Output Unit) (Baseline Performance) (Baseline Performance) (Bus Obj Target vs. Baseline) (Bus Obj Target vs. Baseline)

from ___________ represents ____________ of cost savings. This from ___________ represents ____________ of cost savings. This
(Business Objective) (Business Objective) (Cost Impact of Gap) (Cost Impact of Gap)

project will _______________________________________________. project will _______________________________________________. (Project’s Expected Impact on Performance of Primary Business Measure)
(Project’s Expected Impact on Performance of Primary Business Measure)

by _______________________. by _______________________. (Project’s Expected Completion date)
(Project’s Expected Completion date)

125

Project Definition Project Objective
1 The project objective states the goal of the project.

It must:
1 1 1

Address the issue in the problem statement Quantify the expected performance improvement Identify the expected timing

126

Project Definition Project Objective
1 Why are objectives useful?
1

Objectives are set to give the team, as well as others, a measure of the effectiveness of performance, To see whether improvement efforts are successful in addressing the problem and, therefore, having an impact on the problem stated in the business case.

1

127

They should be based on logic. not just pulled out of the air.Project Definition Project Objective 1 How to set objectives: 1 Objectives should be set to be challenging but achievable during a reasonable amount of time. 1 128 .

if possible) Actual performance Target performance 129 .Project Definition Primary Metric 1 The yardstick that will be used to measure your success: 1 Must be consistent with the problem statement and objective Must be plotted on a time series graph with the following lines: 1 1 1 1 Baseline performance (average over the past 12 months.

Project Definition Primary Metric Project Metric Line Graph Example Product Returns Return $ as a Pct of Sales $ 7% 6% 5% 4% 3% 2% 1% Aug96 Oct96 Nov96 Sep96 0% Baseline Actual Target Jan97 Mar97 Apr97 May97 Jun97 Jul97 Aug97 Nov97 Feb97 Sep97 Oct97 Dec96 Dec97 130 .

Project Definition Secondary Metric 1 The conscience that will “keep you honest” 1 1 Tracks potential negative consequences More than one may be required 131 .

1 Primary and secondary metrics will be used to measure the success of a project. and goals of a project. 132 .Project Selection Summary 1 Careful project selection is critical to the success of the Six Sigma Quality Initiative. the higher the business impact. 1 The more desirable projects you have. significance. and you’ll have a higher probability of success than others. less effort is required. 1 Good problem statements and objectives clearly communicate the scope.

____at the 11 line____________________ M (Product Name. 1M 1 1.11 . This reduction would yield a cost savings of $11 .111 Baseline Time Frame: ____FY 11 ______________ ( The time period for data collection) Project Primary Metric: (example . Productivity) ____Rework Labor_____________ Project Third Metric:_________________________________ This project begins with the Tube Assembly process operation and ends with the _____Noise Test______ process operation.Cycle Time.Cycle Time.Rodgers__________________________________ Location: _Harrison. PPM.111 Project Secondary Metric: (example .__________________________________ Project Baseline: __11 1 PPM’s_________ Project Goal: ____ 1. _______________________________________________________________ . Line or Processes etc.111 (Project expected impact on performance of project primary business metric. This is the highest non-value added cost activity and requires over 1 hours of rewor k labor . the scrap generated from this reject level is over $11 .1 Sigma Project Scope Candidate Name_____Chris Reynolds_____________________ Champion Name: ____Lavon Baxter_____________________________ Division: ____White. Productivity) ___PPM’s at Noise Test.111 in identified non-value added cost. Arkansas_________________________ _ Problem Statement: __In fiscal year 1111 gas valve reject rate for noise was 11 1 PPM. dollars & completion date) 133 . This project will be focused in the ___Harrisburg_________________ Facility. In addition. .) Project Objective: _The objective of this project is to reduce the 11 Gas Valve noise test PPM by 11 by Jul 11 M % . 111 Each year.11 1 1 PPM’s____________ Gap: _11 PPM’s________________ .11 1. PPM. This PPM l evel equates to $111 .

Candidate Selection Black Belt / Green Belt Selection Criteria 1 Desire to Drive Change Someone who is not afraid to take data that might not tell people what they want to hear 1 Effective Communication Skills Someone who can communicate across functional and hierarchical boundaries 1 Demonstrated Leadership Abilities Someone who can motivate others to participate in the work ahead 134 .

Roles: 1 Leads the teams as they implement the 6σ methodology on projects 1 Introduces the methodology and tools to Team Members and the broader organization Reporting Lines: 1 Can report directly to the Champion or to the function 1 Must feel a part of the functional organization Responsibilities: 1 Applies the methodology completely to the project 1 Acts as both a technical and cultural change agent for quality 1 Spreads the methodology to the project teams 1 Supports the efforts of the function by spreading the use of the methodology when called on to assist on other business issues 1 Has dual membership: in the functional and 6σ teams 1 Must have technical competencies required to effectively execute the Six Sigma tools Time Commitment: 1 Must be substantially dedicated (25% – 100%) Min. Training Requirement: 1 Attend Six Sigma training class 1 Complete all project-related requirements EMC Implementation Strategy Six Sigma Belt Roles and Responsibilities 135 .

Mentoring 136 .

understand the aggressive.) Weighted score A 1rating indicates No action has been taken 1 1 1 Complete .com To significantly improve my process 1 / 11 1 11 / 1 1 Champion: Tel / e-mail: Mr or Ms Champion Location: Training Phase: Support Person: Anywhere USA Measure Mr or Ms SSQI Support Champion@client. PPM. Project Time Line (Projplan.Mentoring Candidate: Tel / e-mail: Project Title: Date of this report: Problem Statement: Enter your problem Mr or Ms Candidate Candidate@client.COPQ. etc. RTY.No dollars or no goal.DPU. Baseline.update each visit Weighting Score (11 .does not have all elements Vague . Having difficult time understanding how tools are selected and applied to the project Complex 1 % to 1 % 1 1 up to date >= 1per week up to date Slam Dunk >11 % Candidate Self Assessment Information Only Good Fair. Leader.com Objective / Goal Statement: Enter your goal Project Deliverables . Somewhat Good. tools and their easily gets application. tasks getting by with accomplished help from SSQ.XLS) Team Meetings Project Notebook Project Complexity % Time dedicated to Six Sigma since last review 1 1 1 1 1 Information Only Information Only 1 1 1 1 1 Very 1 % to 1 % 1 1 1 1 1 1 1 1 1 1 1 1 not up to date < 1per week not up to date Very Complex < 11 % Poor. Secondary ~ Potential negatives . Goal & Actual Complete Perfectly clear Goals set Signed Off up to date Problem Statement Objective / Goal Statement COPQ Definition 1 1 1 1 1 1 1 1 1 1 1 1 Metric Chart Primary ~ Defects . Estimate Contains 1elements. etc. Project Status Summary reviewed with: Champion Key Stakeholders 1 1 1 1 1 1 1 1 Not per Project Plan Per Project 137 .

XLS) Gage R&R Process Capability Demonstrated appropriate tool use in completing the Measure Phase List of possible x's Identification of Critical X's Multi-Vari Analysis t .Tests / Non-parametric hypothesis Test of Equal Variance Proportions Tests / Chi .Graphical Analysis (x Search) 1 1 1 1 1 1 1 1 Scheduled / Planned Scheduled / Planned Understands proper Being Compiled Being Finalized Completed <=11 Complete <=11 Complete Completed % % Understands how Has applied tool Has applied Tool use not appropriate 1 1 1 1 1 1 1 1 1 Scheduled / Planned Scheduled / Planned Started Tool use not appropriate Started Scheduled / Planned 1S's Draft Appropriate tool use In Process Analysis of simulation Exceptional Application Analysis of project DOE Completed Applied <=11 Complete <=11 Complete % % 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Appropriate tool Exceptional use Application <=11 Complete <=11 Complete Completed % % In Process Completed Revised Mistake Proofing Both In Control Plan 1 pass st Draft Completed submitted Measure Phase Tool Knowledge green Total Score # Appropriateness of Tool Use N/A See Guidelines tab for rating explanation. 138 .) 1 1 1 1 1 1 1 Weighted score 1 1 1 1 1 1 1 Mentoring A 1rating indicates No action has been taken 1 1 1 1 Started First Pass Being Revised Completed Data being collected One Level Two Level Three Level Planned In process Completed Analyzed Decision(s) Data being collected In Process Completed made Action plan Started Completed RPN's Ranked developed Scheduled / Planned In Process Completed Analyzed Scheduled / Planned Tool use not appropriate In Process Appropriate tool use Data collection completed Capability established Exceptional Application Analyze Phase Deliverables .Measure Phase Deliverables Process Map Multi Level Pareto Charts Fishbone/1 -Why XY Matrix (XYMatrix.XLS) FMEA (pfmea_cp.Square ANOVA Correlation and Regression Improve Phase Deliverables Demonstrated appropriate tool use in completing the Analyze Phase DOE Sample Size Selection Second Project (Measure Phase) Control Phase Deliverables Demonstrated appropriate tool use in completing the Improve Phase Second Project (Analyze Phase) Control Plan Lean Fundamentals One Page Summary Report Final Report 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Weighting 1 1 1 1 1 1 1 Score (11 .

Change Management Objectives 1 To know how a team leader can set up a team for success in the change effort 1 To know the elements of making the team’s change efforts successful in the organization 139 .

Successful Change Project 100% THE TARGET Six Sigma BELTS INVOLVEMENT FOR A SUCCESSFUL BLACKBELT PROJECT Team Support. PLANT STAFF MEASURE ANALYZE IMPROVE CONTROL TIME 140 .

The leadership offers: 1 1 1 Visible. active.Elements of Successful Change Identifying the Change Leader 1 Successful change initiatives require strong committed leadership throughout the entire project lifecycle. and public commitment and support A willingness to take personal initiative and to challenge the status quo A high-level of attention to the project 1 Giving time to the team 1 Talking about the project to others 1 Establishing priorities for the project against other demands in the organization 141 .

Elements of Successful Change Building Mutual Need 1 Creating a shared need involves framing the need to appeal to the interest of all those to be impacted by the change: 1 A shared recognition by the team and the stakeholders for the need and logic for the change Appealing to the unhappiness with the current situation The ability to take perceived threats of the change and turn them into opportunities for the future 1 1 142 .

Elements of Successful Change Forming a Vision 1 Building a vision provides an organization with the direction and motivation to make the change: 1 A view of what the future will look like with this change Appeals to logic and intuition while explaining why the change is needed Can help to establish milestones to mark the progress of the change 1 1 143 .

Elements of Successful Change Mobilizing Commitment 1 Mobilizing commitment positions the team for support when it is faced with obstacles. Convert all key influencers. 144 . Identify the potential sources of resistance. 1 1 1 Create an alliance of committed supporters.

Elements of Successful Change Sustaining Change 1 Change initiatives must be composed of commitments rather than “assignments:” 1 Having consistent. Aligning systems and structures helps make the change a part of individual and team behavior. 1 1 145 . Integrating change into on-going work behaviors is needed. and tangible reinforcement of the changed behavior is needed. visible.

Elements of Successful Change Monitoring Change 1 Good measurement systems need to be established early in the project. 1 What are the metrics that will be used to determine the team’s success in making a sustained change? Tracking these metrics and sharing them across all those impacted by the team Winning support of doubters through results 1 1 146 .

1 Identifying critical system and structure areas that must be addressed Assessing the risk of slipping back into “old habits” Aligning systems and structures with desired behaviors 1 1 147 .Elements of Successful Change Aligning Systems and Structures 1 Assessing the existing system of measures and rewards will highlight existing practices that are inconsistent or unproductive.

List the behavioral changes. 1 Evaluate rewards and recognition 1. Evaluate the organization’s likely reaction to displaying behaviors that are desired to move to and behaviors desired to move from: 1 1 1 1 A= Reward or approval B= Punishment or disapproval C= No reaction D= Impossible to predict (continued) 148 . 2.Elements of Successful Change Aligning Systems and Structures System and Structures Integration Template -cont.

Elements of Successful Change Aligning Systems and Structures System and Structures Integration Template -cont. Develop an action plan to reward the desired behaviors not included in performance metrics or included in the likely to receive reward or approval. 5. 149 . Develop an action plan to eliminate rewarding behaviors that are not desired. 4. Evaluate the existing rewards using the measurement checklist. List the existing rewards available to employees. 3. 6.

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