Professional Documents
Culture Documents
Topics (Session 1)
Understanding Six Sigma History of Six Sigma
Whats in a name?
Sigma is the Greek letter representing the standard
15
process does not produce the same result (the Y) every time.
Some variation will exist in
10
-5
all processes.
-10
delivered fast!
10
20
30
40
50
10
20
30
40
50
DPMO
691,462 308,538 66,807 6,210 233 3.4
99.9997% 0.00034%
In a world at 6 sigma. . .
1 U.S. flight is cancelled every
3 weeks.
There are fewer than 4 false
every 4 minutes.
In MA, 5,390 newborns are
years in MA.
It would take more than
Topics
Understanding Six Sigma History of Six Sigma
1960: Kaoru Ishikawa introduces his now famous cause-and-effect diagram. 1970s: Dr. Noriaki Kano introduces his two-dimensional quality model and the three types of quality.
1995: Jack Welch launches Six Sigma at GE. 1994: Larry Bossidy launches Six Sigma at Allied Signal.
Topics
Understanding Six Sigma History of Six Sigma
Key Define Tools: Cost of Poor Quality (COPQ) Voice of the Stakeholder (VOS) Project Charter As-Is Process Map(s) Primary Metric (Y)
Key Improve Key Control Tools: Tools: Solution Selection Control Charts Matrix Contingency To-Be Process and/or Action Map(s) Plan(s)
Project Charter
Stakeholders
Six Sigma
What is the problem? The problem is the Output (a Y
in a math equation Y=f(x1,x2,x3) etc). What is the cost of this problem Who are the stake holders / decision makers Align resources and expectations
Look up appropriate Weight Fee and write in top middle box on package back Take packages f rom Weight Fee Clerk Outbox to A/R Clerk Inbox. Add Distance & Weight Fees together and write in top right box on package back
Accounting
Take packages f rom A/R Clerk Outbox to Accounts Superv isorInbox. Take packages f rom Accounts Superv isor Outbox to OutSort Clerk Inbox.
Circle Total Fee and Draw Arrow f rom total to sender code
Write Total Fee f rom package in appropriate Sender column on Accts. Supv .s log
Finalizing
Add up Total # of Packages and Total Fees f rom log and create client inv oice
Observ e sender and receiv er codes and make entry in Out-Sort Superv isors log
Delivery
SECONDARY RESEARCH
Market Data
Critical to Quality
Industry Benchmarking
Customer Service
Customer Correspondence
PRIMARY RESEARCH
Survey s
OTM Observations
Focus Groups
Descriptive Statistics
Sample some data / not all data Current Process actuals measured against the Customer expectation What is the chance that we will succeed at this level every time?
10
20
30
40
50
25.1961
95% Confidence Interval for Median 95% Confidence Interval for Median 19.7313 26.0572
Prepared by:
S E V
Potential Causes
O C C
Current Controls
D E T
R P N 0
Actions Recommended
Resp.
Actions Taken
S E V
O C C
D E T
R P N 0
X1 X2 X3 X4
etc
0 0 0 0 0 0 0
0 0 0 0 0 0 0
Six Sigma
Experimental Design
Regression Analysis
Six Sigma
Generate
Evaluate
Clarify
Decision
Divergent | Convergent
Time
Cost
Six Sigma
Solution Right Wrong Implementation Good Bad
Nice Idea
Nice Try
Flowchart
Customer Sales Processing Branch Manager Loan Service Manager
Measures (Tools) Responsibility Contingency Where & (Who) (Quick Fix) Frequency
Remarks
35 UCL=33.48
No
Application Complete?
Individual Value
25
Mean=24.35
1.2 Processing
15 0 10 20 30
LCL=15.21
1.4 Review
Observation Number
1.5 Disclosure
Verify
Key Tools
Multi-Generational Planning (MGP) Quality Function Deployment (QFD)
Topics
Understanding Six Sigma History of Six Sigma
Champions
Promote awareness and execution of Six Sigma
Black Belts
Use Six Sigma methodologies and advanced tools
Business Unit(s)
Undergo 5 weeks of training over 5-10 months
Green Belts
Use Six Sigma DMAIC methodology and basic
Business Unit(s)
Bring knowledge of Six Sigma concepts & tools to
Other Roles
Subject Matter Experts Provide specific process knowledge to Six Sigma teams Ad hoc members of Six Sigma project teams
Financial Controllers Ensure validity and reliability of financial figures used by Six Sigma project teams Assist in development of financial components of initial business case and final cost-benefit analysis
Topics
Understanding Six Sigma History of Six Sigma
Questions?
Problem Identification Cost of Poor Quality Problem Refinement Process Understanding Potential X to Critical X Improvement
Problem Identification
If it aint broke, why fix it This is the way weve always done it
Problem Identification
First Pass Yield Roll Throughput Yield Histogram Pareto
Problem Identification
First Pass Yield (FPY): The probability that any given unit can go through a system defect-free without rework.
Scrap 10 Units 100 Units Step 1 Outputs / Inputs 100 / 100 = 1 100
Step 2
90 / 100 = .90
90
Scrap 3 Units
Step 3
87 / 90 = .96
87 85 / 87 = .97
Scrap 2 Units
Step 4
85
Problem Identification
Rolled Throughput Yield (RTY): The yield of individual process steps multiplied together. Reflects the hidden factory rework issues associated with a process.
Re-Work 10 Units 100 Units
Step 1
100 Units
Step 2
Re-Work 3 Units 100 Units
97 / 100 = .97
Step 3
Re-Work 2 Units
98 / 100 = .98
100 Units
Step 4
100 Units
Problem Identification
RTY Examples - Widgets
50
50 Function 2
(50-5)/50 = .90
50 Function 3 10 50 Function 4 5 50
Problem Identification
RTY Example - Loan Underwriting
50
50/50 = 1
7 Fails Underwriting
50 Underwrite
43 Close
42
Problem Identification
Histogram A histogram is a basic graphing tool that displays the relative frequency or occurrence of continuous data values showing which values occur most and least frequently. A histogram illustrates the shape, centering, and spread of data distribution and indicates whether there are any outliers.
Histogram of Cycle Time
40
30
Frequency
20
10
C8
Problem Identification
Histogram Can also help us graphically understand the data
Descriptive Statistics
Variable: CT
Anderson-Darling Normality Test A-Squared: P-Value: Mean StDev Variance Skewness Kurtosis N Minimum 1st Quartile Median 3rd Quartile Maximum 69.947
54 64 74 84 94
6.261 0.000 80.1824 67.6003 4569.81 2.31712 8.26356 170 1.000 31.000 66.000 105.000 444.000 90.417 75.664 84.494
25
100
175
250
325
400
95% Confidence Interval for Mu 95% Confidence Interval for Sigma 61.098 95% Confidence Interval for Median 55.753 95% Confidence Interval for Median
Problem Identification
Pareto The Pareto principle states that 80% of the impact of the problem will show up in 20% of the causes. A bar chart that displays by frequency, in descending order, the most important defects.
Pareto Chart for WEB
100 100 80 60 50 40 20 0 0
n-W No EB ers Oth eb) (W
Defect
Count Percent Cum %
96 86.5 86.5
15 13.5 100.0
Percent
Count
Topics (Session 2)
Problem Identification Cost of Poor Quality Problem Refinement Process Understanding Potential X to Critical X Improvement
Cycle Time GAP (stated as a percentage between current results and desired results) multiplied by direct and indirect costs in the process.
Square Footage opportunity cost, advertising costs, overhead costs, etc
Topics (Session 2)
Problem Identification Cost of Poor Quality Problem Refinement Process Understanding Potential X to Critical X Improvement
Problem Refinement
Multi Level Pareto Logically Break down initial Pareto data into subsets (to help refine area of focus)
Percent
Count
Defect
Count Percent Cum %
96 86.5 86.5
15 13.5 100.0
Defect
Count Percent Cum %
al nu An
ime eT On
45 41.3 41.3
35 32.1 73.4
e im eT On
i ng Go On d an
13 11.9 85.3
16 14.7 100.0
Percent
Count
Problem Refinement
Problem Statement A crisp description of what we are trying to solve. Primary Metric An objective measurement of what we are attempting to solve (the y in the y = f(x1, x2, x3.) calculation). Secondary Metric An objective measurement that ensures that a Six Sigma Project does not create a new problem as it fixes the primary problem. For example, a quality metric would be a good secondary metric for an improve cycle time primary metric.
Problem Refinement
Fish Bone Diagram - A tool used to solve quality problems by brainstorming causes and logically organizing them by branches. Also called the Cause & Effect diagram and Ishikawa diagram
Topics (Session 2)
Problem Identification Cost of Poor Quality Problem Refinement Process Understanding Potential X to Critical X Improvement
Process Understanding
SIPOC Suppliers, Inputs, Process, Outputs, Customers You obtain inputs from suppliers, add value through your process, and provide an output that meets or exceeds your customer's requirements.
Process Understanding
Process Map should allow people unfamiliar with the process to understand the interaction of causes during the work-flow. Should outline Value Added (VA) steps and non-value add (NVA) steps.
Size Sorts Control Docs Open Full Form Pull & Sort
Receipt / Extract
Start
Ck / Vouch Verify
Requal Group
Perfection
No Remit Yes Pass 1 Pass 2 Rulrs Prep cks, route vouch Prep cks Ship to IP
Vouchers
Data Cap
Balance
No
Ship to Cust
Process Understanding
Create daily peak staff need plan Action Plan
No
Add 30% to the required no. Check off desired returnee staff & "need to retrain" list To Floor
Yes
Operations
No
Compare to original Billet rpt
Yes
OJT
Make it?
No
Yes No
Need re -train
Yes
To Floor
Call (3x) Update IPS Do they want to work this peak? Have we No hired enough? Rev original billet & call uncheck ed Do they want to work this peak? Have we No Call Wait hired List enough?
Stop!
No
Send Letters to desired staff
No Yes Interview /
pre-hire Rank as "1 2 3" Meet Fleet hiring criteria
Do they respond?
Yes
No
New
Yes
Yes
HR / Recruit
Start
What if the returnee is already working here on another program? Currently send the ltr anyways
No
Do they want to stay on the list
Yes
No
Do they want to stay on the list
Yes
No
Stop!
No
Stop!
Yes
Place into dept show up orienta tion
No
Call 3X
Wait List
Yes Yes
Yes
New & Other People call in Take off IPS system
Yes
Reach
No
Show up?
No
Call 1X
Training
Train
Yes
No
Pass?
Yes
Update IPS
Topics (Session 2)
Problem Identification Cost of Poor Quality Problem Refinement Process Understanding Potential X to Critical X Improvement
Potential X to Critical X
Y is the dependent output of a variable process. In other words, output is a function of input variables (Y=f(x1, x2, x3).
Through hypothesis testing, Six Sigma allows one to determine which attributes (basic descriptor (generally limited or binary in nature) for data we gather ie. day of the week, shift, supervisor, site location, machine type, work type, affect the output. For example, statistically, does one shift make more errors or have a longer cycle time than another? Do we make more errors on Fridays than on Mondays? Is one site faster than another? Once we determine which attributes affect our output, we determine the degree of impact using Design of Experiment (DOE).
Potential X to Critical X
A Design of Experiment (DOE) is a structured, organized method for determining the relationship between factors (Xs) affecting a process and the output of that process (Y). Not only is the direct affect of an X1 gauged against Y but also the affect of X1 on X2 against Y is also gauged. In other words, DOE allows us to determine - does one input (x1) affect another input (x2) as well as Output (Y).
Potential X to Critical X
DOE Example
Main Effects Plot (data means) for Elapsed
Lo w h Hig Lo w h Hig Lo w h Hig Lo w h Hig
1.4
1.3
Elapsed
1.2
1.1
Jams
1 3
DCDEL
3
SK
3 1
P2Jam
3 1
Potential X to Critical X
DOE Optimizer Allows us to statistically predict the Output (Y) based on optimizing the inputs (X) from the Design of experiment data.
Topics (Session 2)
Problem Identification Cost of Poor Quality Problem Refinement Process Understanding Potential X to Critical X Improvement
Improvement
Once we know the degree to which inputs (X) affect our output (Y), we can explore improvement ideas, focusing on the cost benefit of a given improvement as it relates to the degree it will affect the output. In other words, we generally will not attempt to fix every X, only those that give us the greatest impact and are financially or customer justified.
Control
Once improvements are made, the question becomes, are the improvement consistent with predicted Design of Experiment results (ie are they what we expected) and, are they statistically different than pre-improvement results.
LSL
USL
Within Overall
Potential (Within) Capability Z.Bench 1.53 Z.USL 1.53 Z.LSL 5.87 Cpk 0.51 Cpm *
-1.0
-0.5
0.0
0.5
1.0
Exp. "Overall" Performance % < LSL 0.00 % > USL 12.62 % Total 12.62
Overall Capability Z.Bench 1.14 Z.USL 1.14 Z.LSL 4.40 Ppk 0.38
Observed Performance % < LSL 0.00 % > USL 13.04 % Total 13.04
Exp. "Within" Performance % < LSL 0.00 % > USL 6.35 % Total 6.35
Control
Control Chart - A graphical tool for monitoring changes that occur within a process, by distinguishing variation that is inherent in the process(common cause) from variation that yields a change to the process(special cause). This change may be a single point or a series of points in time - each is a signal that something is different from what was previously observed and measured.
I and MR Chart for Sept
Individual Value
1 0.5 UCL=0.5293
0.0 2 -0.5
Mean=0.03
LCL=-0.4693 Sept 13
9/13
Subgroup
Date
Sept 20
9/25
Moving Range
UCL=0.6134
R=0.1877 LCL=0
Wrap Up