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 .

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

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 products ability to meet customer requirements To be able to explain the meaning of Six Sigma as a change initiative in a business

Comprehend Business Objectives/Priorities. 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.

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, the

sales organization, or the service youve 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?

Does Your Company Need Six Sigma? -cont.

Does Your Company -

1Have a magician in

your organization?

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

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 do not use data. Our organization collects data simply to say, We collect data. Our organization collects data and we sometimes look at the numbers. Our organization logically groups the data. We form charts. Our organization uses sample data along with basic statistics. Our organization uses sample data along with inferential statistics.

A+ Our organization quantifies processes via prediction equations.

Our Grade: _____________
10

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

The number of standard deviations that fit between the mean and the nearest specification limit

2
LSL USL

OR
1

A measure of the number of defects per opportunity produced by a process

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 3.5 hours each month 15,000 overnight carrier packages lost per week 25 incorrect car rental reservations per company per day
Automotive Standard 4 Capability 99.379 % Long-Term Yield
13

Todays Standard 3 Capability 93.319 %

Six Sigma Standard 6 Capability 99.99966 %

Sigma level compared to defects

Note: Industry standard has defined a sigma level to imply short term.

Short-term distribution shifted by 1.5 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 11 111 . 1 1 11 1 1 1 11 11. 111 . 1 1 11

Sigma Level 1 1 1 1 1 1

Short-Term Long-Term PPM PPM 11 1 .1 111 1 11 .1 111 111 11 .1 1 11 .1 111 11 .1 11 11 1 11 .1 1 .1 1 11 .1 11 1 .1 11 1 .1 1 .1 1 .1

Long-Term PPM

Short-Term PPM

1 11. 1 11 1 1 11 11.

1 1. 11 11. 1 11 Sigma Level

1 11 . 1 11 1.

1 11 . 11 .

Short-Term PPM Long-Term PPM

14

Benchmarking Standards
Process Capability (Sigma Level)
3 Sigma 93.319% 50.086% 0.396% 0.099% 0.003% 0.000% 0.000% 0.000% 0.000% 4 Sigma 99.379% 93.961% 60.755% 53.638% 39.284% 15.432% 0.057% 0.000% 0.000% 5 Sigma 99.977% 99.768% 98.156% 97.700% 96.570% 93.257% 75.636% 49.753% 0.000%
(Distribution Shifted 1.5)

1 10 80 100 150 300 1,200 3,000 150,000

6 Sigma 100.000% 99.997% 99.973% 99.966% 99.949% 99.898% 99.593% 98.985% 60.042%

Product Complexity (# of Opportunities)

4 toothpick manufacturer (assume one opportunity for a defect): Has an RTY of 0.99379 (1) = 99.379% 4 mechanical pencil manufacturer (assume 10 opportunities for a defect): Has an RTY of 0.99379 (10) = 93.961%

Rolled Throughput Yield (RTY)

15

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

Six Sigma Overview

Traditional Metrics
Equipment Util. vs. COPQ Test Yield vs. COPQ

$130,000 $120,000 $110,000

$130,000 $120,000 $110,000

COPQ

COPQ

$100,000 $90,000 $80,000 $70,000 $60,000 0.825 0.85 0.875 0.9 0.925 0.95 0.975 1

$100,000 $90,000 $80,000 $70,000 $60,000 80.0% 82.5% 85.0% 87.5% 90.0% 92.5%

Equipment Utilization

Test Yield

17

Six Sigma Overview

Six Sigma Metrics
Sigma Level vs. COPQ
$450,000 $375,000 $450,000 $375,000

Cycle Time vs. COPQ

COPQ

COPQ

$300,000 $225,000 $150,000 $75,000 $1.00 1.75 2.50 3.25 4.00 4.75 5.50

$300,000 $225,000 $150,000 $75,000 $0.00 30.00 60.00 90.00 120.00

Sigma Level

Cycle Time (Minutes)

18

Six Sigma Overview

For an average company, the COPQ can be as high as

25%
of total sales!
19

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

25

EMC Six Sigma Approach

Implementation Strategy 1 Strategic Infrastructure 1 Tactical Infrastructure 1 Operational Infrastructure

Application Strategy

1 Measure 1 Analyze 1 Improve 1 Control

26

EMC Implementation Strategy

1 Traditional Quality program implementation
1 1 1

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

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

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

EMC Implementation Strategy Champion Roles and Responsibilities

Roles: 1 Is responsible for coordination of the business roadmap to achieve 6 1 Selects projects, controls execution, and alleviates roadblocks for the 6 projects in his area of responsibility Reporting Lines: 1 Is part of the functional organization and reports directly to the 6 leader 1 Is a member of the organizations 6 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 Master Black Belt Roles and Responsibilities

Roles: 1 Is a mentor, trainer, and coach of Black Belts and others in the organization 1 Brings broad organization up to the required 6 competency level. Reporting Lines: 1 Is generally a central resource; is cross functional. 1 Is a member of the 6 leadership team and the steering committee Responsibilities: 1 Mentors and coaches Black Belts 1 Develops and conducts several forms of training 1 Owns the 6 technical development roadmap 1 Provides higher education of Black belts and Master Black Belts 1 Brings the entire organization to the 6 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 6 organizations Time Commitment: 1 Must be 100% dedicated

31

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 6 methodology as it applies to the particular project 1 Continues to learn and practice the 6 methodology and tools after project completion. Some may evolve to the Black Belt level of knowledge and practice. Time Commitment: 1 Is defined by the Six Sigma Belt, Champion, 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

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 6 training is implemented in the organization 1 Participates in 6 reviews Time Commitment: 1 As needed Min. Training Requirement: 1 Four-hour overview

33

EMC Six Sigma Approach

Implementation Strategy 1 Strategic Infrastructure 1 Tactical Infrastructure 1 Operational Infrastructure

Application Strategy
1 Measure 1 Analyze 1 Improve 1 Control

34

EMC Application Strategy

What Tool(s) Do You Need for Your Project? 6 5 4 3 1 to 2
35

Tools:
Design for manufacturability Design for Six Sigma, 6 tolerancing, product scorecard

Tools:
Process characterization (mapping, MSA, etc) Process optimization (DOE, etc)

Tools:
Seven basic tools (paretos, fishbones, check sheets, histogram, flowcharts, brainstorming, control charts)

Tools:
Common sense Tribal knowledge

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

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, multi-vari, hypothesis testing, 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

EMC Application Strategy

Project Reviews
1 Each phase has a list of potential project application

tools. Use these tools to move your project forward.

1

If the tool is not appropriate, please make sure you clearly understand and can demonstrate its usage. We are here to help you with both the application and the underlying concept.

Local and Corporate Project Reviews

1 1

Present only the tools that are pertinent or of interest to the audience during your reports. Your presentation should take no longer than 15 minutes.
1

Please allow 10 minutes for the presentation itself and five minutes for a brief question/answer session. Your presentation should consist of approximately 8 to 10 slides.
38

EMC Application Strategy Phase 1: Product Measurement

Part

YTP X1, , XN
Operation Verify

Y1, , 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 .1 1 .1 1 .1 1 .1 1 .1 1 .1 1 .1 1

S am ple Mean

1 .1 1 .1 1 .1 1 .1 1 .1 1 .1 1 .1 1 .1 1 .1

Xbar Chart by Operator

1 1 1

Operator*Part Interaction

Operator
1 1 1

1 SL=1 11 .1 .11 X=1 11 .11 -1 SL=1 11 .1 .11

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 11 .1 11 .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 SL=1 11 .1 .11

R=1 11 .111 -1 SL=1 1 .1 .11

1
Short-Term Capability Cp CPU CPL Cpk Cpm 11 .1 11 .1 11 .1 11 .1 * Targ USL LSL k n * 1.11 11 11 .11 11 .11 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 .1 1 .1 1 .1

By Operator

Oper ID Components of Variation

%Total Var %Study Var 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 .11 1.11 1 11 1 11 .11 1 11 .11

%>USL Exp Obs %<LSL Exp Obs

1.1 11 1.1 11 11 .1 11 .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

Session 1, Application Tools

1 Project Selection
1 1

*Problem statement and project status *Project assessment chart (Metric.doc) Process flow diagram XY matrix, PFMEA, fishbones Data collection system Attribute/Variable gauge studies Capability (Cpk, level, DPU, RTY) Graphical tools (histograms, , ) *Conclusion(s) *Issues and barriers *Next steps

Regardless of the tools used, 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

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 .11 S=11 .11 LCL=1111 .

Xbar and S Chart

UCL=111 .1 X=111 .1 LCL=111 .1

Capability Indices
ST Mean StDev Z.USL Z.LSL Z.Bench Z.Shift P.USL P.LSL P.Total Yield PPM Cp Cpk Pp Ppk 1 11 1 1. 1 1111 . 1111 . 1111 . 1111 . LT 1 11 1 1. 1 1111 . 1111 . 1111 . 1111 .

11 .111 11 .111

11111 11111 . . 11111 11111 . . 11111 11111 . . 1. 11 11 1 11 1 11 . 1 11 . 1 11 . 1 11 . 1 1. 11 11 1 111 11

Potential (ST) Capability

Process Tolerance
1 11 1 1. 1
I I I I

Actual (LT) Capability

Process Tolerance
1 11 1 1. 1
I I I I I

1 11 1 1. 1
I I

1 11 1 1. 1
I

11 1

11 1

11 1

11 1

Specifications

Specifications

Data Source: Time Span: Data Trace:

Box Plot Analysis

11 .1 11 .1 11 .1

Impurity

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

Session 2, Application Tools

1 Project Status
1 1

*Problem statement and project status *Project assessment chart (Metric.doc)

1 Process Capability Analysis

1 1 1

Regardless of the tools used, you should address Regardless of the tools used, 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, s level, DPU, RTY) Graphical tools (histograms, m, s)

3) How much of the problem, as described in the 3) How much of the problem, as described in the measure phase, are you going after? measure phase, 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

EMC Application Strategy Phase 3: Performance Improvement

Design of Experiments
Main Effects for Response
Centerpoint
-1 1 -1 1

Run Factor A No. Feed Rate 1 2 3 4 5 6 7 8 .015IPR RAPID .015IPR RAPID .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

B 43

Session 3, Application Tools

Project Selection See ProjPlan.xls
1 Problem

statement & project status 1 Project assessment chart (Metric.doc)

Remaining Session 1 and 2 Deliverables Design of Experiments

1 DOE

Regardless of the tools used, 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, X2, X3, )

Updated PFMEA Progress Summary

1 1 1

*Conclusion(s) *Issues and barriers *Next steps

Completed Local Project Review

* Note: Required reports

44

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

i =1

(X i ) 2 N
High Spec Low Spec

-1
MHz

Statistics

Standards

Realistic Tolerance on X

EWMA Chart for Length

6 0 1.5

E W M A C h a r t fo r L e n g th
U C L = 6 0 1.2 U C L = 6 0 1.2

6 0 0 .5

EWMA

X = 6 0 0 .1 X = 6 0 0 .1 5 9 9 .5

L C L = 5 9 8 .9 5 9 8 .5 0 50 10 0 L C L = 5 9 8 .9

Sample Number
45

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

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.

47

Fundamental Equation

The Fundamental Equation That Drives Six Sigma

Y = f(x)
The Output Is A Function Of The Inputs And The Process.

48

Fundamental Equation
The Fundamental Equation

Y= f(x)
What is Y?
Output Dependent Effect Symptom Monitor

What are X . . . X ?
1 N

s s s s s

Input process variables Independent Cause Problem Control

49

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, fishbones, maps, etc.)
50

Process characterization and optimization Design for manufacturability

1 1

Seven basic tools Design for Six Sigma (paretos, fishbones, maps, etc.)

Six Sigma Metrics

Individual
Parts per million, ppm Process capability Cp,Cpk, Pp,Ppk Defects per unit, DPU Defects per million opportunities, DPMO Z-score or sigma value

Product
Rolled throughput yield, RTY

Yield

51

Understanding Yield
1 First Time Yield (FTY) is a common output metric

(Y metric) used to identify and target problem areas.

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 FTY is not a good predictor for improving profits

and/or decreasing scrap.

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 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

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

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

(continued)
58

Example of DPU -cont.

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.

DPUtotal = DPU sub assembly ( i )

i =1

Here are defect rates for four sub-assemblies that make up the final product:
1 1 1 1

A B C D Product

0.10 0.15 0.05 0.10 0.40

DPU DPU DPU DPU DPU

59

Rolled Throughput Yield (RTY)

1 RTY: Measuring the probability

defect-free unit, instead of first time yield.

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. It is a valid approximation for defect rates of 10% or lower. It shows there is a relationship between DPU and RTY.
60

Rolled Throughput Yield Example

The pedal sub-assembly process is outlined below. We have identified the DPU associated with each process step.
Select R and L part #s from bin location DPU = 0.02
Process Step Select Part Hand Tighten L Hand Tighten R Torque L Torque R Total

Handtighten L pedal DPU = 0.01

DPU Step Yield 11 . 1 1% 1 11 . 1 1% 1 11 . 1 1% 1 11 . 1 1% 1 11 . 1 1% 1 11 . 1

Handtighten R pedal DPU = 0.01

Torque L pedal to 5 ft lbs DPU = 0.03

Torque R pedal to 5 ft lbs DPU = 0.03

. RTY = e dpu = e 11= 1 % *** 1

or RTY = 11 11 11 11 11 . 1 . 1 . 1 . 1 . 1 = 1% 1
61

*** Good for DPU < 0.1 , otherwise use product of step yields

Understanding First Time Yield and RTY

1 Rolled Throughput Yield (RTY) is a measure that is

based on defects that occur throughout the process.

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 DPUs.

DPU 1 .5 .1 .01 Probability % 37 60 90 99
62

Defects per Million Opportunities (DPMO)

1 It is sometimes helpful to compare products, parts, and

processes of differing complexities. We would expect products/processes of higher complexity to have a lower RTY (and sigma value).

RTY = Yield process a Yield process b Yield process n RTY = e

DPUtotal

=e

DPU process ( i )
i =1

1 The higher n (the complexity) is, the lower the RTY. 1 DPMO is for Benchmarking and project selection and DPU for

Six Sigma Project Metric.

63

The Calculation
1 To compare products/processes of differing complexity, we

must start with a measure of complexity. We call this measure an opportunity. product, or the number of process steps needed to assemble a product. Both would be indicators of overall product/process complexity. measure of complexity is used uniformly.

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 ,1 1 ,1 1 1 Total Opportunit ies

64

Understanding Opportunities
1 Which product is performing better, the pencil or the

blender?

Pentel Pencil
Defects per Unit (DPU) Rolled Throughput Yield (RTY)

Blender

0.030 97.04 %

0.189 82.78 %

65

Understanding Opportunities
1 Which product is performing better, the pencil or the

blender?

Pentel Pencil
Defects per Unit (DPU) Rolled Throughput Yield (RTY) Opportunities DPU/Opp DPMO Product Sigma Level

Blender

0.030 97.04 % 15 0.00200 2000 4.405

0.189 82.78 % 97 0.00195 1948 4.405

RTY = e - dpu ln(RTY) = - dpu dpu = - ln(RTY)

Note: Assumes the defects were collected in the long term.

66

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

Inspection Exercise
Task: You have 60 seconds to document the number of times the 6th letter of the alphabet appears in the following text.
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. 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, the farm owners feel they should carry on livestock, 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. fundamental farm management.
68

Attribute R&R
1

An attribute R&R is used to:

1

Determine if operators across all shifts, all machines, etc., use the same criteria to determine good from bad Assess your inspection or workmanship standards against your customers 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

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

Discover areas where:

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, DPU

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 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 3.4 ppm (6, short term)
70

How to Run an Attribute R&R

Step 1: Select about 30 parts from the process.
1

50% of the parts in your study should have defects. 50% of the parts should be defect free. If possible, select borderline (or marginal) good and bad samples.

1 1

Step 2: Identify the operators who should be qualified. 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

How to Run an Attribute R&R -cont.

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

72

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

Why Study Measurement Systems?

1 Before you spend time and effort on a Green Belt project, we

must validate the integrity of the data we are going to use in the decision-making process.
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 It is also a great tool for comparing two or more measurement

devices or two or more operators against one another.

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.
1 It should be the basis for evaluating a measurement system

that is suspect of being deficient.

77

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

2 total =

product +

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, repeatability part accounts for repeat measurements taken on an automated piece of test equipment.
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.

2 total = 2 total =
2

product +
2

measurement system
2

product +

repeatability +

reproducibility
79

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. 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.

2 total = 2 total =
2

product +
2

measurement system
2

product +

repeatability +

reproducibility
80

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

(continued)
81

The Methodology -cont.

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

82

Variable Gage R&R Example

Situation: In our bicycle factory, the quality department measures the length of the tube stock used to form the handlebars on a sample basis. They use a steel rule with an end stop to make this measurement. The rule measures to the nearest 0.01".There are three operators who cut tube stock and record this data. Task: Determine the adequacy of the measurement system.

83

Example
1

Step 1: Collect 10 samples that represent the full range of long-term process variation. In addition, identify the operators who use this instrument daily.

To determine the full range, lets look at the capability analysis for these parts. Process Capability Analysis for Bikebar Length The parts have a mean of LSL USL 44.1" and a standard USL 44.25 deviation of 0.10, so we LSL 43.75 would expect 95% of the Mean 44.10 parts produced to be StDev 0.10 between 43.9" and 44.3" ( 2). We should use parts in this range for the 43.8 43.9 44.0 44.1 44.2 44.3 44.4 study. Mary, Pat, and Joe are the operators who measure this parameter and so should be selected as part of the measurement study.
84

Example, Gage R&R Using Minitab

1

Step 2: Calibrate the Gage or verify that the last calibration date is valid. In this case, we could measure some standard lengths to ensure that the steel rule is not biased.

Step 3: Set up the Minitab data-collection sheet for the R&R study. Create the R&R data-collection sheet for 10 parts, each measured two times by three operators. 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

Example, Gage R&R Using Minitab

1

Step 4: Ask the first operator to measure all the samples once in random order. The operator should not know the identity of each part, to reduce human bias. Mary measures all of the parts in random order. Step 5: Have the second and then the third operator measure all the samples once in random order. All operators have now measured the samples once (this is Trial 1). 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 then Pat and then Joe measure the parts a second time in random order.

86

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

87

Run the Analysis

1

Step 8: Use Minitab to analyze the data.

1

Stat>Quality Tools>Gage R&R Study>Options

Enter PartID, Operator, and Measure.

1 1

1 1

5.15 standard deviations 5.15 standard deviations represent 99% of the represent 99% of the normal curve. normal curve. Enter 5.15 and 0.5 comes from 0.25 0.5 comes from 0.25 the process tolerance 0.5. the process tolerance
88

Gage R&R Output: Graphical

1

Step 9: Analyze the Minitab output.

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 1. 1 11 1. 1 11 1. 1 11 G age R&R Repeat Reprod Part-to-Part Part ID 1 1 1

By Part ID

1 1

1 1 1

R Chart by Nam e
Sample Range 11 . 1 11 . 1 11 . 1 11 . 1 11 . 1 1 R= 111111 . LCL= 1 1. 1 11 1. 1 11 Name Joe
Joe Mar y P at

By Nam e
UCL= 111111 . 1. 1 11 1. 1 11

Mary

Pat

Xbar Chart by Nam e

Joe Mar y P at

Nam e*Part ID Interaction

1. 11 Average UCL= 11 . 11 Mean= 11 . 11 LCL= 11 . 11 1. 11 1. 11 Part ID 1 1 1 1 1 1 1 1 1 1 1

Sample Mean

1. 11 1. 11 1. 11 1. 11 1

Name Joe Mary Pat

Graphs! But what do they mean? Lets investigate each section one at a time.
89

The Bar Chart

90

The Xbar and Range Chart

91

Gage R&R, Xbar, and R

92

Operator Bias

93

A Part-by-Part Look

94

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.
Runchart of Measure by Part ID, Name
Gage name: Date of study: Reported by: Tolerance: Misc:
1. 1 11

Measure

1. 1 11

Joe Mary Pat

1. 1 11

1. 1 11

Part ID
1. 1 11

Measure

1. 1 11

1. 1 11

1. 1 11

Part ID

1 1

95

Gage Results: Minitab Session Window

Source Total Gage R&R Repeatability Reproducibility Name Part-To-Part Total Variation VarComp 1.90E-04 8.73E-05 1.02E-04 1.02E-04 6.45E-03 6.64E-03 StdDev (SD) 1.38E-02 9.35E-03 1.01E-02 1.01E-02 8.03E-02 8.15E-02 %Contribution (of VarComp) 2.86 1.32 1.54 1.54 97.14 100.00 Study Var (5.15*SD) 0.070923 0.048129 0.052093 0.052093 0.413572 0.419609 %Study Var (%SV) 16.90 11.47 12.41 12.41 98.56 100.00 %Tolerance (SV/Toler) 14.18 9.63 10.42 10.42 82.71 83.92
96

Source Total Gage R&R Repeatability Reproducibility Name Part-To-Part Total Variation

Gage R&R, Distinct Categories

Number of Distinct Categories = Eight
1 1

The part is in one of these eight zones.

This is the number of distinct categories this measurement system can distinguish. The number of groups within your process data that your measurement system can discern. Source VarComp Total Gage R&R 1.90E-04 Repeatability 8.73E-05 Reproducibility 1.02E-04 Name 1.02E-04 Part-To-Part 6.45E-03 Total Variation 6.64E-03

1 Total Dist Categories = RoundDown *1 1 MS

97

Handling Poor Gage Capability

1 1

If a dominant source of variation is repeatability (equipment), you need to replace, repair, or otherwise adjust the equipment. If, 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, you should still fix the Gage. If a dominant source of variation is operator (reproducibility), you must address this via training and definition of the standard operating procedure. You should look for differences among operators to give you some indication as to whether it is a training, skill, and/or procedure problem. Evaluate the specifications. 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), then the Gage is probably not hindering you and you can continue to use it.

1 1

98

Summary
1 Before you spend time and effort in a Green Belt project,

we must validate the integrity of the data we are going to use in the decision-making process.
1 Measurement error is included with the process

variation in any observed Y.

2 total =
2

product +

repeatability +

reproducibility

1 When conducting a Gage study, we need parts that are

representative of the entire range produced by the process.

1 We will use Minitab output, both graphical and numeric,

to assess the capability of the Gage.

99

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.

Traditionally, 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

Six Sigma vs. Traditional Projects -cont.

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

Six Sigma vs. 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. 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, and outlines the metrics used to determine project success
106

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

(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

Narrowing Project Focus

Comments on Narrowing a Projects 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, and where the need for improvement is substantial.
1 Please keep in mind that decisions based on factual

data are always better than those based upon intuition, hearsay, or folklore.
(continued)
110

Narrowing Project Focus -cont.

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, etc.)

1

Narrows projects focused on reducing cost/unit Narrows projects focused on increasing quality or yield Narrows projects focused on decreasing cycle time

Defect counts (actual defects, RTY, FTY)

1

Non-value-added time (re-work, delay, inspection)

1
111

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

Identify the re-work and scrap throughout the process. Attach the cost to business for each re-work and scrap point in the process. VALIDATE THESE COSTS WITH THE (continued) 112

Narrowing Project Focus Reducing Cost -cont.

Analysis to Reduce Project Focus
1Step 2: Pareto analysis of the COPQ
1

COPQ of re-work vs. scrap costs

Count

All Defects by Category, 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

COPQ of each re-work and scrap step

Count Percent Cum %

800 61.6 61.6

200 15.4 77.0

75 5.8 82.8

60 4.6 87.4

55 4.2 91.7

20 1.5 93.2

15 1.2 94.4

14 59 1.1 4.5 95.5 100.0

Defect
113

Percent

COPQ for each sub process

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, (continued) 114 rejected at start of next process

Narrowing Project Focus Improving Quality -cont.

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 (

Count Percent Cum %

800 61.6 61.6

200 15.4 77.0

75 5.8 82.8

60 4.6 87.4

55 4.2 91.7

20 1.5 93.2

15 1.2 94.4

14 59 1.1 4.5 95.5 100.0

Defect

(continued)
115

Percent

Defects by machine

Narrowing Project Focus Improving Quality -cont.

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, machinery, 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

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

Narrowing Project Focus Reducing Cycle Time -cont.

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, 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 (

Total non-value-added time after the last bottleneck Time spent in each re-work step Time spent in each test/ inspection step

Count Percent Cum %

800 61.6 61.6

200 15.4 77.0

75 5.8 82.8

60 4.6 87.4

55 4.2 91.7

20 1.5 93.2

15 1.2 94.4

14 59 1.1 4.5 95.5 100.0

Defect

(continued)
118

Percent

Time spent in delay for each backlog step

Narrowing Project Focus Reducing Cycle Time -cont.

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

Narrowing Project Focus Additional Considerations

1 In addition to the impact to the stated problem in the

business case, there may be:

1

Business constraints on capital investment in the project Business constraints on resource investment in the project

1 For certification only, one additional factor must be

considered when selecting a project:

1

The project must serve as a learning opportunity.

1 1

IT MUST BE FEASIBLE TO COMPLETE THIS PROJECT WITHIN FOUR MONTHS. The project should offer the opportunity to use as many tools as possible.
120

Project Selection III Project Definition Problem Statement

1 What is a problem statement?
1

A problem statement describes in specific, concrete terms what the data have revealed. It describes the present undesirable situation with clarity and objectivity while avoiding hidden solutions. 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

Project Definition Problem Statement

1 Required Criteria for a Good Problem Statement
1

It states the effect.

1

It states what is wrong, not why it is wrong. Avoid lack of and due to statements. These always imply solutions. It states how often, how much, and when. It avoids broad and ambiguous categories such as morale, productivity, communication, and training.
122

It is measurable.
1

It is specific.
1

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.

1

The gap may be a change or deviation from the norm, standard, or the customers valid requirement or expectation. It is not stated as a question, which may tend to imply a solution. It does not imply blame on any person or department. The problem statement highlights how customers are affected and the areas of discomfort, hurt, or annoyance.

It is stated in an objective manner.

1

It focuses on the pain, either explicitly or implicitly.

1
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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

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 _______________________________________________. (Projects Expected Impact on Performance of Primary Business Measure)
(Projects Expected Impact on Performance of Primary Business Measure)

by _______________________. by _______________________. (Projects Expected Completion date)

(Projects 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.

127

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. They should be based on logic, not just pulled out of the air.

128

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

Baseline performance (average over the past 12 months, if possible) Actual performance Target performance

129

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

Project Selection Summary

1 Careful project selection is critical to the success of

the Six Sigma Quality Initiative.

1 The more desirable projects you have, the higher

the business impact, less effort is required, and youll have a higher probability of success than others.
1 Good problem statements and objectives clearly

communicate the scope, significance, and goals of a project.

1 Primary and secondary metrics will be used to

measure the success of a project.

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1 Sigma Project Scope

Candidate Name_____Chris Reynolds_____________________ Champion Name: ____Lavon Baxter_____________________________ Division: ____White- Rodgers__________________________________ Location: _Harrison, Arkansas_________________________ _ Problem Statement: __In fiscal year 1111 gas valve reject rate for noise was 11 1 PPM. This PPM l evel equates to $111 , 1M 1 1,11 ,111 in identified non-value added cost. This is the highest non-value added cost activity and requires over 1 hours of rewor k labor , 111 Each year. In addition, the scrap generated from this reject level is over $11 . ,111 Baseline Time Frame: ____FY 11 ______________ ( The time period for data collection) Project Primary Metric: (example - Cycle Time, PPM, Productivity) ___PPMs at Noise Test.__________________________________ Project Baseline: __11 1 PPMs_________ Project Goal: ____ 1,11 1,11 1 1 PPMs____________ Gap: _11 PPMs________________ ,111 Project Secondary Metric: (example - Cycle Time, PPM, Productivity) ____Rework Labor_____________ Project Third Metric:_________________________________ This project begins with the Tube Assembly process operation and ends with the _____Noise Test______ process operation.

This project will be focused in the ___Harrisburg_________________ Facility, ____at the 11 line____________________ M (Product Name, Line or Processes etc.) Project Objective: _The objective of this project is to reduce the 11 Gas Valve noise test PPM by 11 by Jul 11 M % . This reduction would yield a cost savings of $11 . _______________________________________________________________ ,111 (Project expected impact on performance of project primary business metric, dollars & completion date)

133

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 6 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 6 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

Mentoring
Candidate: Tel / e-mail: Project Title: Date of this report: Problem Statement: Enter your problem Mr or Ms Candidate Candidate@client.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.com

Objective / Goal Statement: Enter your goal

Project Deliverables - update each visit

Weighting

Score (11 - )

Weighted score

A 1rating indicates No action has been taken 1 1 1 Complete - does not have all elements Vague - No dollars or no goal. Estimate Contains 1elements; Baseline, 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 - DPU, PPM, RTY, etc. Secondary ~ Potential negatives - COPQ, etc. Project Time Line (Projplan.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. 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. Somewhat Good. Leader, understand the aggressive, tools and their easily gets application, tasks getting by with accomplished help from SSQ.

Project Status Summary reviewed with: Champion Key Stakeholders

1 1

1 1

1 1 1 1

Not per Project Plan

Per Project

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Measure Phase Deliverables Process Map Multi Level Pareto Charts Fishbone/1 -Why XY Matrix (XYMatrix.XLS) FMEA (pfmea_cp.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 - 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 - ) 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 - 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

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 teams 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

Elements of Successful Change Identifying the Change Leader

1 Successful change initiatives require strong

committed leadership throughout the entire project lifecycle. The leadership offers:
1 1

Visible, active, 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

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

143

Elements of Successful Change Mobilizing Commitment

1 Mobilizing commitment positions the team for

support when it is faced with obstacles.

1 1 1

Create an alliance of committed supporters. Identify the potential sources of resistance. Convert all key influencers.

144

Elements of Successful Change Sustaining Change

1 Change initiatives must be composed of

commitments rather than assignments:

1

Having consistent, visible, and tangible reinforcement of the changed behavior is needed. Integrating change into on-going work behaviors is needed. Aligning systems and structures helps make the change a part of individual and team behavior.

145

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 teams 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

146

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.

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

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Elements of Successful Change Aligning Systems and Structures

System and Structures Integration Template -cont.
1 Evaluate rewards and recognition

1. List the behavioral changes. 2. Evaluate the organizations 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

Elements of Successful Change Aligning Systems and Structures

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