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Page 1: ASQ Six Sigma

Workshop on Structured Problem Solving Using DMAIC Methodology

Page 2: ASQ Six Sigma

Agenda

Day 1:

TQM

Introduction to Six Sigma

Define Phase

Project Charter

Day 2:

Seven QC Tools

Process Mapping

Day 3:

FMEA

Process Capability

Control Charts

Day 4:

Lean Enterprise

Day 5:

VSM Exercise

NTPC Case Study

Exam & Wrap Up

Page 3: ASQ Six Sigma

The Evolution of Quality

• Provides a framework for understanding the history of the quality movement.

• Expands the definition of quality.

Page 4: ASQ Six Sigma

Juran’s Definition of Quality

Defined as “fitness for use” based on:• Customer’s perceptions of product design.• Degree to which a product conforms to

design.• Product’s availability, reliability, and

maintainability.• Available customer service.

Page 5: ASQ Six Sigma

ISO Definition of Quality

• Degree to which a set of characteristics fulfills requirements

Requirements:Convenience and speed

Product:Telephone

Characteristic:Speed dial

Page 6: ASQ Six Sigma

Crosby’s Definition of Quality

• Quality is conformance to requirements.• Requirements are answers to key

organizational questions:

– How quickly will orders ship?– What is our return policy?– What forms of payment are

acceptable?

Page 7: ASQ Six Sigma

Quality Evolution: Medieval Guilds

Guilds: Developed strict rules for

products and services. Used stamps to identify

flawless goods.

Y ea r a n d P er io d1200-1799 1 9 0 0 -1 9 4 0 1 9 4 6 -P re se n t1 8 0 0 -1 8 9 9 1 9 4 1 -1 9 4 5G u ild s o f

m ed ieva l E u rop eP ro d u c t

o rie n ta tio nP ro c e ss

o rie n ta tio nQ u a lity d u rin gW o rld W a r II

B ir th o fto ta l q u a lity

Page 8: ASQ Six Sigma

Quality Evolution: Product Orientation

Master craftsmen trained apprentices.

Industrial Revolution divided trades into specialized tasks; inspectors guaranteed quality.

Taylor system increased productivity; inspection departments found defects.

Y ea r a n d P er io d1 2 0 0 -1 7 9 9 1 9 0 0 -1 9 4 0 1 9 4 6 -P re se n t1800-1899 1 9 4 1 -1 9 4 5G u ild s o f

m e d ie v a l E u ro p eP rod u ct

or ien ta tionP ro c e ss

o rie n ta tio nQ u a lity d u rin gW o rld W a r II

B ir th o fto ta l q u a lity

Page 9: ASQ Six Sigma

Quality Evolution: Process Orientation

Processes became critical. Shewhart identified statistical

quality control. Developed strict rules for

products and services. Quality became relevant for

process, not just product.

Y ea r a n d P er io d1 2 0 0 -1 7 9 9 1900-1940 1 9 4 6 -P re se n t1 8 0 0 -1 8 9 9 1 9 4 1 -1 9 4 5G u ild s o f

m e d ie v a l E u ro p eP ro d u c t

o rie n ta tio nP rocess

or ien ta tionQ u a lity d u rin gW o rld W a r II

B ir th o fto ta l q u a lity

Page 10: ASQ Six Sigma

Quality Evolution: Wartime

Quality became a safety issue.

The military developed a sampling inspection system and trained suppliers.

Y ea r a n d P er io d1 2 0 0 -1 7 9 9 1 9 0 0 -1 9 4 0 1 9 4 6 -P re se n t1 8 0 0 -1 8 9 9 1941-1945G u ild s o f

m e d ie v a l E u ro p eP ro d u c t

o rie n ta tio nP ro c e ss

o rie n ta tio nQ u ality d u r in gW orld W ar II

B irth o fto ta l q u a lity

Page 11: ASQ Six Sigma

Quality Evolution: Total Quality Movement

Developed in response to Japanese quality movement.

Focused on improving all processes through people who used them.

Y ea r a n d P er io d1 2 0 0 -1 7 9 9 1 9 0 0 -1 9 4 0 1946-P resen t1 8 0 0 -1 8 9 9 1 9 4 1 -1 9 4 5G u ild s o f

m e d ie v a l E u ro p eP ro d u c t

o rie n ta tio nP ro c e ss

o rie n ta tio nQ u a lity d u rin gW o rld W a r II

B irth o fto ta l q u a lity

Page 12: ASQ Six Sigma

W. Edwards Deming

Quality keys:• Understanding

customer needs• Process

improvement• Statistical analysis• Expertise of workers• PDCA cycle

Page 13: ASQ Six Sigma

Joseph M. Juran

Quality keys:• Features that

satisfy customers• Freedom from

deficiencies• Juran Trilogy®

– Quality planning– Quality control– Quality

improvement

Page 14: ASQ Six Sigma

Kaoru Ishikawa

Quality keys:• Company-wide

participation• Quality control circles• Advanced statistical

methods and tools• Nationwide quality

control promotion

Page 15: ASQ Six Sigma

Armand V. Feigenbaum

Quality keys:• Total quality control• Integration of quality

development, maintenance, and improvement

• Focus on internal and external customers

Page 16: ASQ Six Sigma

Genichi Taguchi

Quality keys:• Quality should be

designed in.• Quality should

minimize deviations from a target.

• DOE optimizes performance.

Page 17: ASQ Six Sigma

Philip Crosby

Quality keys:• Conformance to

requirements• Prevention• Zero Defects• Price of

nonconformance

Page 18: ASQ Six Sigma

Total Quality Management

Total quality management (TQM):

• A management approach

• Centered on quality

• Based on company-wide participation

• Aimed at long-term success

• Through customer satisfaction

Page 19: ASQ Six Sigma

3 Cs of TQM

Customer relationships

Continuous improvement

Company-wide participation

1

2

3

Page 20: ASQ Six Sigma

Customer Definitions

1

P u ck er U p L em on ad e , In c .

In tern a l C u sto m ersL oad in g D ock

B ottlin g D ep artm en tM ix in g D ep artm en t

S ortin g D ep artm en tJu ic in g D ep artm en t

S ortin g D ep artm en tJu ic in g D ep artm en tM ix in g D ep artm en t

E x tern a lC u sto m ers

C on su m ers

Page 21: ASQ Six Sigma

Levels of Customer Satisfaction

Noriaki Kano identified threelevels:• Expected quality• Desired quality• Excited quality

1

Page 22: ASQ Six Sigma

Customer Feedback

1

Has two parts: Efforts to capture

what customers say about company’s

products/services Efforts to drive

feedback back intoorganization

Partnering with customer: Extension of

listening to customer feedback Most direct route to

customer satisfaction

Page 23: ASQ Six Sigma

PDCA

• A well-known model for continuous process improvement is the Plan-Do-Check-Act cycle.

2

P la nA ct• A n a ly ze rea so n

fo r n o t m a k in gd esired resu lts .

C h eck D o

• W h a t to d o .• H o w to a cco m p lish it.

• C a rry o u t th e p la n .• S ee if th e d es ired resu ltsw ere o b ta in ed .

• D eterm in e w h a tch a n g es to m a k e tob etter a ch iev e d esiredresu lts .

• S ta n d a rd ize if d esiredresu lts a ch iev ed .

Page 24: ASQ Six Sigma

3

Company-Wide Participation

• Leadership must come from management.• All employees must be involved.• Employee involvement usually requires

employees to work in cross-functional teams.

Page 25: ASQ Six Sigma

Employee Involvement

Benefits• Improved

productivity and cost reduction

• Increased participation and job satisfaction

• Opportunities for professional development

Barriers• “It Won’t Work

Here”• Perception of loss

of management authority

• Employees feeling “used”

• “Flavor of the month”

3

Page 26: ASQ Six Sigma

Quality Benefits

• Tangible– Increase in

earnings– Decrease in

waste– Increase in

productivity

• Intangible– Customer

goodwill– Alignment

between business activities

Page 27: ASQ Six Sigma

W. Edwards Deming on Quality

• Meeting customer needs + wants = quality.

• Quality improves products/services and processes.

• Improved products/services and processes = profitability.

Page 28: ASQ Six Sigma

A Quality Approach Benefits . . .

Employees Organizations

Suppliers Society

Customers

Page 29: ASQ Six Sigma

Benefits to Employees

Product quality

Greater job security/benefits

Process quality

Profit

Customer satisfaction

Pride in products andservices

Job satisfaction

Improved communicationsStreamlined work processesHappier customersStrong customer

relationships

Page 30: ASQ Six Sigma

Benefits to Organizations

Q u a lity

O rg a n iza tio n s

C o st

M a rk etS h a re

P ro fit

Page 31: ASQ Six Sigma

Quality Studies and Standards

Released the Profit Impact of Market Strategy (PIMS) study.

Partnered with the Baldrige recognition program.

Both organizations support the link betweenquality and profitability.

Strategic PlanningInstitute

National Institute ofStandards and

Technology

Page 32: ASQ Six Sigma

External and Internal Customers

PublicationDepartment

SalesDepartment Customer

Page 33: ASQ Six Sigma

Benefits to Customers

Quality results in:• Increased choices.• Improved goods

and services.• Expectations met or

exceeded.

Page 34: ASQ Six Sigma

Benefits to Suppliers

• Achievement of performance requirements

• Streamlined processes

• Efficient communication

• Increased customer satisfaction

Page 35: ASQ Six Sigma

Benefits to Society

Economic growth and stability

Increased employment opportunities

Product safety

Page 36: ASQ Six Sigma

Process Management

Quality improvements are applied to single processes within manufacturing.

Quality improvements are applied to all organizational activities through process management.

Before TQM

After TQM

Page 37: ASQ Six Sigma

Organizational Process

P ro cess

• P eo p le• E q u ip m en t• M a ter ia l• M o n ey• T im e

R eso u rces

In p u t O u tp u tD

PC

P reced in gP ro cess

S u b seq u en tP ro cess

C u stom er In flu en ce

Page 38: ASQ Six Sigma

Introduction to Six Sigma

Page 39: ASQ Six Sigma

What is Lean Six Sigma?Introduction

• Six Sigma goal is process perfection through defect reduction.

• Lean goal is cycle time reduction through elimination of waste.

“Only those companies that eliminate their defects will have what it takes to win.”

“Breakthrough companies strive for 100 percent DEFECT-FREE products and services.”

Larry Bossidy

CEO of AlliedSignal

“Only those companies that eliminate their defects will have what it takes to win.”

“Breakthrough companies strive for 100 percent DEFECT-FREE products and services.”

Larry Bossidy

CEO of AlliedSignal

Page 40: ASQ Six Sigma

What is Six Sigma?Methodology and Improvement Strategy

• Six Sigma is an overall strategy to accelerate improvements in processes, products, and services–create breakthrough.

• Six Sigma measures how effective strategies are in eliminating defects and variations from processes, products, and services.

=

Y

+

x3 …)x2,

+ ...+

f(x1,

Process output (Y) is a function of (f) the inputs (Xs). Understanding and controlling this relationship is a major aspect of Six Sigma projects.

Page 41: ASQ Six Sigma

Focus on Variation• Sigma (σ) refers to standard deviation, a measure of process

variation (smaller is better).• Process Sigma is the number of units of standard deviations

between the process center and the closest specification limit (larger is better).

• A Six Sigma process has six standard deviations (short term) between the target and the closest specification limit.

6 Sigma

UpperSpec

LowerSpec

6 Standard Deviations

Target

UpperControl

LowerControl

Process Center

Page 42: ASQ Six Sigma

Sources of Variation

$ Process Capabili

ty

Measurement System

Material

Design

Page 43: ASQ Six Sigma

Harvesting the Fruit of Six Sigma

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Sweet Fruit Design for Manufacturability

Bulk of FruitProcess Characterization and Optimization

Low Hanging FruitSeven Basic Tools

Ground FruitLogic and Intuition

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

3 s Wall - Demand improvement3 s Wall - Demand improvement

4 s Wall - Must Improve Internally4 s Wall - Must Improve Internally

5 s Wall - Must Address Designs5 s Wall - Must Address Designs

The walls crumble faster when working WITH suppliers and CONCURRENTLY addressing design and process issues

Discretedata

Page 44: ASQ Six Sigma

The Focus of Six Sigma

· Y· Dependent· Output· Effect· Symptom· Monitor

· X1 . . . XN

· Independent· Input-Process· Cause· Problem· Control

f (X) Y

Would you control shooter or target to get the Gold Medal at Olympics

Page 45: ASQ Six Sigma

Six Sigma Defines Problems Statistically

Y - Outputs Dependent Output Effect Symptom Able to

Monitor

X1 . . . XN - Inputs

Independent Inputs,

process Cause Problem Controllable

The product is used to evaluate the process.

Y= f (X) Should we focus on the process outputs (Y) or inputs (X)?

The process is used to control the product.

Page 46: ASQ Six Sigma

20,000 lost articles of mail per hour

Unsafe drinking water for almost 15 minutes each day

5,000 incorrect surgical operations per week

Two short or long landings at most major airports each day

200,000 wrong drug prescriptions each year

No electricity for almost seven hours each month

Seven articles lost per hour

One unsafe minute every seven months

1.7 incorrect operations per week

One short or long landing every five years

68 wrong prescriptions per year

One hour without electricity every 34 years

99.99966% Good (6 Sigma)99% Good (3.8 Sigma)

Page 47: ASQ Six Sigma

Define Phase

Page 48: ASQ Six Sigma

The Define Phase

The define phase module provides an

overview of the following tools:

1. Project selection

2. Project charter

3. Supplier, Input, Output, Customer (SIPOC)

diagram

4. Collecting Voice of the Customer (VOC)

Page 49: ASQ Six Sigma

Projects Must be …

Page 50: ASQ Six Sigma

Sorting Projects from Messes

• A mess is a morass of unsettling

symptoms, causes, data, pressures,

shortfalls, opportunities, etc.

• A problem is a well-defined situation that is

capable of resolution

• Identifying a problem from within the mess

is frequently the first step in the process of

project definition

Page 51: ASQ Six Sigma

Project Qualifications

• There is a gap between current and desired

performance.

• The cause of the problem is not clearly

understood.

• The solution is not predetermined.

Page 52: ASQ Six Sigma

Project Selection is Critical• High leverage projects lead to largest $$ Savings• Large returns justify the investment in time and

effort • Developing a Lean Six Sigma culture depends

upon successful projects having significant business impact

• Black Belt training depends on completion of a meaningful project within ~ 6 months

• Future Projects are frequently identified through initial projects

Page 53: ASQ Six Sigma

Lean Six Sigma Project Criteria

• Aligned with business objectives and plans

– Voice of Customer/ Critical to Satisfaction (CTS)

– Quality (CTQ) / Cost (CTC) / Delivery (CTD)

• Consistent with principles of Six Sigma

– Elimination of process defects

– Reduction of variation

• Concentrates on significant issues/opportunities

..... not “problem of the day”

• Justify the investment

Page 54: ASQ Six Sigma

Project Selection

“The best Six Sigma projects begin not inside the business but outside it, focused on the question — how can we make the customer more competitive? What is critical to the customer’s success? … One thing we have discovered is that anything we do to make the customer more successful inevitably results in a financial return to us.”

Jack Welch

Address to the General Electric annual meeting April 23, 1997

Page 55: ASQ Six Sigma

What is Customer Satisfaction?

• A comparison of expectation to experience

• A matter of degree• A result of a good match between

supply and demand• A predictor of repeat business

Page 56: ASQ Six Sigma

Y

• Projects are identified by the relationship between product, service, or deliverable requirements and processes.

• The process parameters that affect the requirements

are later identified (X1 , X2 , … Xn)

Customer needs are translated into product, service or deliverable requirements in terms of quality, delivery and cost. The “Y” of Y=f(X).

• Leverage processes are identified.

Breakdown ofthe processes

required toproduce the

product,service, ordeliverable.

Customer Needs Translated into “Critical To” (CT) Characteristics

Typical Critical to Characteristics

CTQ Critical to Quality

CTD Critical to Delivery

CTC Critical to Cost

Page 57: ASQ Six Sigma

S. No.

Criteria Weight

1 Aligned with core objectives 10

2 High probability of success 10

3 Data Availability 8

4 Pain area 8

5 Process Improvement 7

6 Higher returns 8

7 Repeatable 6

8 Faster Deployment 5

9 Stakeholder Satisfaction 7

10 Ease of implementation 6

Aligned with

core objectives

High probability of success

Data Availability

Pain area

Process

Improvement

Higher

returns

Repeatable

Stakeholder Satisfaction

Ease of

implementation

Faster

Deployment

Project Selection Criteria

Page 58: ASQ Six Sigma

S. No.

CriteriaProject 1 Project 2 Project 3 Project 4 Project 5

APC Reduction in stage I

Boiler (Stage II) Optimization

DM (Stage I) Make up Optimization

ESP (Stage I) Inlet Duct Replacement

Soot Blowing Sy.Optimization

1 Aligned with core objectives

2 High probability of success

3 Data Availability

4 Pain area

5 Process Improvement

6 Higher returns

7 Repeatable

8 Faster Deployment

9 Stakeholder Satisfaction

10 Ease of implementation

Strong Relationship Moderate Relationship Weak Relationship

Project Selection Matrix Diagram

Page 59: ASQ Six Sigma

Factors that Improve Project Success

• Dedicated Black Belt• Champion phase reviews• Black Belt has knowledge of

process/product to be improved• Historic data• Clearly defined deliverables • Committed process owners (skin in the

game) with the authority to modify the process

Page 60: ASQ Six Sigma

8

Project Metrics – Success CriteriaPrimary Metric • Used to measure project success• Consistent with the problem description and objective• Plotted on a time series graph and shows the goal and actual

performance lines

Secondary Metric(s)• Control unintended negative consequence (assures the Primary

Metric is not achieved artificially)• May be used to measure project progress when the Primary Metric

responds slowly • More than one may be required• Plotted on a time series graph and shows the goal and actual

performance lines

Page 61: ASQ Six Sigma

Project Charter

Traditionally created by LSS Champion

Specifies details of a project including:1. Scope

2. Responsibilities

3. Benefits

4. Schedule

5. Success criteria

A project charter template that may be adopted to fit your organization is: Project Charter Template.

Page 62: ASQ Six Sigma

SIPOC

Supplier, Input, Process, Output, Customer diagrams are used to:

1. Define the scope of the project

2. Identify key stakeholders

3. Gain a “30,000 foot” view of the process targeted by the project

Tips:

4. The SIPOC is the first of several ways the process will be documented. Therefore, it should be at a relatively high level of abstraction.

5. It is a good way to assure agreement on the scope of the project.

Page 63: ASQ Six Sigma

SIPOC Diagram – Questions to Answer

• Who are the customers of this process?• What are their requirements?• How are those requirements reflected in the

process parameters (output measures)?• What are the process outputs?• What are the process inputs that cause the

outputs?• What controls are in place for the inputs?• Who are the suppliers of the material for this

process?• What are their requirements?

Page 64: ASQ Six Sigma

Purpose of Various Diagrams / Maps

• SIPOC diagrams provide a “forest view” of the process – maintains focus on the customer’s requirements.

• Value stream “trees level” describes the time, effort, resources, and information used in the process – a frequent source of early wins.

• Lay-out diagram (spaghetti diagram) documents the distance an item travels during its production – illustrates unnecessary movement.

• Process map “ground level” documents the inputs and outputs of each step in the process – provides the raw material for building a model of the process.

Page 65: ASQ Six Sigma

The SIPOC Diagram – The Forest Level

• Start with the end in mind.• Who are the customers of this process?• What are their requirements?• How are those requirements reflected in the

process parameters (output measures)?• What are the process outputs?• What are the process inputs that cause the

outputs?• What controls are in place for the inputs?• Who are the suppliers of the material for this

process?• What are their requirements?

Page 66: ASQ Six Sigma

Sample SIPOC

Supplier(s) Inputs/Req'ts Process Output(s)/Req'ts Customer(s)

Grocery storeUtility CompanyAppliance store

Coffee machineMeasuring cupElectricityQualified operatorWaterFiltersCream/milkSweetenerGround coffee

1800

Specified number of cupsNo grounds< one hour oldDarkHotAromaticFreshStrong

HusbandWifeGuest

Install filterMeasure coffeeAdd coffeeAdd WaterTurn on machine

Page 67: ASQ Six Sigma

SIPOC Validation

Review the SIPOC with your: team,

Champion and process owner(s) to assure

agreement on the SIPOC content as well

as the project scope and success criteria

among all stakeholders.

Page 68: ASQ Six Sigma

IISS PP OO CCSuppliers Inputs Process Outputs Customers

Coal Field

Rihand Dam

Suppliers

Power

Effluent

Process Ash

Steam

CO2

InternalInternal

-Plant Mgmt

-Corp Mgmt

-Employee

ExternalExternal

-Cent.Gov.

-Ministry

-State Gov.

-Shareholders

-Contractors

-Suppliers

-PAPs

-Labour

EnvironmentEnvironment

CTQs

Plant Availability

UI Earned

Plant Load factor

Maintenance Cost

AUXILLIARY POWER-

CONSUMPTIONPreferred Employer

R&R

Man : MW Ratio

Lead Time

Heat Rate

Quality System

Social Responsibility

Manpower Utilization

Overhead Expenses

ENERGY EFFICIENCYDM Water Used

Safety aspect

Training of manpower

Cycle Time

In process idle stock

Air Emission quality

Noise level

COALCOAL

AIRAIR

WATERWATER

Boiler

STEAMSTEAM

TurbineGenerator

GRID

Coal

Water

Air

Power

Manpower

Lubricants

Maintenance

Services

Spares and

Consumables

Page 69: ASQ Six Sigma

Collecting VoC

• Who is a customer?

• What does the customer need?– Gathering the Voice of the Customer

– Define customer requirements

• How do the customers prioritize their needs?

• How are customer needs translated into CTQs?

Generally a less intense exercise for DMAIC projects than for DFSS projects

More likely to be based on information that is already available internally for DMAIC projects than for DFSS projects

Page 70: ASQ Six Sigma

Process

Voice of Customer

Step Step Step Product/Service

Customer

Who Is a Customer?

A customer sets/affects requirements for your product or service.• External• Buying customers• End-users • Regulatory agencies

A customer is one who receives your output.• Internal

Page 71: ASQ Six Sigma

Customer Segmentation

• Generally, external customer needs are more important than internal customer needs.

• Are all customers equally important?–External vs. internal–Customer segments

• Regions• Type of business• Volumes• Profitability• Strategic market• Future potential

Page 72: ASQ Six Sigma

Voice of the Customer

• The Voice of the Customer (VOC) is the

starting point of any project and data

collection plan.

• The Voice of the Customer includes:

– Expectations

– Requirements

– Opinions

Page 73: ASQ Six Sigma

Questions to Find Voice of the Customer

• What are the elements of your business that are

the most critical, from the perspective of your top

or best customers? What are their relevant

needs?

• What data has been collected to understand the

customer requirements?

• How do you operationally define the defect from

the perspective of the customer? Under what

conditions does it occur?

Page 74: ASQ Six Sigma

Voice of the Customer Concerns

• Real vs. stated needs

• Perceived needs

• Intended vs. actual usage

• Internal customers vs. external customers

• Effectiveness vs. efficiency needs

• Change over time

Page 75: ASQ Six Sigma

Determining Customer Requirements

• Use verbatim comments from customers to

help determine the key customer

requirements

– We often receive many verbal comments from

our customers.

– We need to look for ways to probe for deeper

meaning behind the comments in order to

translate these comments into what the

customer actually requires.

Page 76: ASQ Six Sigma

Tools for Gathering Voice of the Customer

Unsolicited data from customers – Complaints– Field reports– Trade journals– Benchmarking– Internal research

• Requirements documents• Contracts• Customer observation• Be a customer

Page 77: ASQ Six Sigma

Tools for Gathering VOC

Solicited data from customers

– Interviews

– Focus groups

– Surveys

– Informal customer discussions

– Market research

Page 78: ASQ Six Sigma

Determining Customer Requirements

• Review customer verbatim comments and

comparative data

• If possible, probe for deeper understanding

• Convert into terms of process performance

• Describe the actual customer requirement

– Write the requirement, not the solution

– Use measurable terms

– Identify performance targets

– Be concise

Page 79: ASQ Six Sigma

Define Phase Review

• The purpose of the define phase is to identify and

launch a project.

• VOC should be reflected in the project charter

especially in the project success criteria.

• The Black Belt and Champion should review and

agree on the details of the project charter and

SIPOC.

• A common cause of project failure is poorly

defined or projects with excessive scope. This

review is an opportunity to mitigate that risk.

Page 80: ASQ Six Sigma

D M A I CVOC ( Voice of Customer )

Customer NeedCustomer NeedsAux Power Consumption

Generation & Dispatch

Environmental Pollution

Conservation of CoalWH

AT

?

Ran

king

( 1

-5 )

Impr

ove

Proc

esse

s

Arre

st P

ro.D

evia

tion

Bette

r Sy

stem

s

Repl

ace

with

eff.

pro

Wor

se

Sam

e

Bet

ter

RATING

HOW ?Competitor

554

4

5 5 4 44 5 4 24 5 4 4

5 5 2 5

81 90 64 66

Page 81: ASQ Six Sigma

D M A I C

Project Charter

Page 82: ASQ Six Sigma

Big Y:

Reduction in APC of Stage-I units

Reduction in APC of Stage-I units

Project Review DatesChampion:

Process Owner:

Process Owner:

Quality Leader

Coach (BB):

Green Belt:

Resource Plan General InformationTollgate Date Signoff

(xx/xx/xx)

Green Belt Contact Information :

Define

Measure

Analyze

Improve

Control

Mohit YadavMr. S. Banerjee

Mr. P.K.MohapatraMr. N.N.Mishra

Iswar BMDIswar BMD

Ashish Jain EMDAshish Jain EMDS. Sinha TMDS. Sinha TMD

V. Agarwal EEMGV. Agarwal EEMG

Mohit Yadav 94258232991550

Mohit Yadav 94258232991550

YesYes

YesYes

YesYes

YesYes

YesYes

Project Team Rhythm and ReviewMeeting Frequency:

Mandatory Attendees:

Optional Attendees:

15 Days15 Days

Mohit YadavMohit Yadav V. Agarwal V. Agarwal Iswar Iswar

Mr. P.K.MohapatraMr. P.K.Mohapatra Mr. N.N.MishraMr. N.N.Mishra Mr. N.K.SinhaMr. N.K.Sinha Mr. S. BanerjeeMr. S. Banerjee

Rhythm and Review: On-Track

Off-TrackNeed Attention

05/02/0705/02/07

05/04/0705/04/07

15/04/0715/04/07

31/05/0731/05/07

31/08/0731/08/07

D M A I C

Mr. N.K.SinhaMr. S. Mathew

S. SinhaS. Sinha A. JainA. Jain

Page 83: ASQ Six Sigma

VOC ( Voice of Customer )

Page 84: ASQ Six Sigma

The Seven QC Tools

Page 85: ASQ Six Sigma

Check sheet Stratification Pareto diagram C &E Diagram Histogram Scatter diagram Graphs and Charts

Page 86: ASQ Six Sigma

Problem Solving

Continuous Improvement-- Kaizen

Dispersion Control-- Six Sigma

Waste Elimination--Lean

QMS, EMS, TS 16949, OHSAS-Process control, C&P

Supplier Development

Project Management--Team working

Area of Uses

Page 87: ASQ Six Sigma

What is their role ?

In problem solving

Page 88: ASQ Six Sigma

Tool

Data gathering

Check sheet

Stratification

Role they Play

Quantify current status

or magnitude of the

Problem

Facilitate data gathering

Identify and segregate different sources of the problem

Role

Page 89: ASQ Six Sigma

Tool

• Pareto diagram

• Brain storming

• Cause & effect diagram

Role they Play

• Prioritize the problem

• Generate many ideas for solving a specific problem

• Identify possible causes of a problem in a structured way

Role

Page 90: ASQ Six Sigma

Tool

• Histogram

• Scatter diagram

• Graph & chart

Role they Play

• Study pattern of variation in a set of data.

• Study relationship between 2 types of variable

• Visual display of data

Role

Page 91: ASQ Six Sigma

DATA GATHERING

Data Collection

Page 92: ASQ Six Sigma

What is Data ?

Data is a numerical expression of an activity

Page 93: ASQ Six Sigma

Conclusions based on facts and data are necessary for any improvement.

K. Ishikawa

If you are not able to express a phenomenon in numbers, you do not know about it adequately

Lord Kelvin

Page 94: ASQ Six Sigma

Types of Data

Quantitative Qualitative

• Measurable e.g. :Length, Temperature

• Countable e.g. :Number of

defects

• Subjective assessment e.g. :Score in a beauty

contest

Page 95: ASQ Six Sigma

Population Sample Data

Action

Action

X

Population, Sample and Data

Random

Sampling

Measurement

/ Observation

Page 96: ASQ Six Sigma

A Saying When you see the data, doubt it When you see the measuring instrument, doubt

it. When you see the chemical analysis, doubt it. Three Categories

1 False Data

2 Mistaken Data

3 No Data available

Page 97: ASQ Six Sigma

 How to Collect Data?

Define the purpose (Follow 5W 1H approach). Define the period for data collection. Define the Stratification. Design the check sheet and assess Measurement

System Capability.Purpose

Be Clear on What, Where, When, Why, Who and How the data should be generated

Page 98: ASQ Six Sigma

STRATIFICATION

Page 99: ASQ Six Sigma

Stratification

Method of grouping data by Common points or characteristics

A Filtration Process for isolating the cause of a problem.

Prevent mix up and helps in easy & faster identification-

Page 100: ASQ Six Sigma

Basis for Stratification

Workers Material

Machines Time

Defect Environment

Product Folder

RegionFiles

Page 101: ASQ Six Sigma

Machine A

N = 450D = 12P% = 2.7

Machine B

N = 450D = 1118P% = 26.2

Machine A

N = 450D = 12

P% = 2.7

Machine B

N = 450D = 118

P% = 26.2

COMBINED

N = 900D = 130

P% = 14.4

Page 102: ASQ Six Sigma

Blister Defect

Pinhole Defect

All Defects

UCL

CL

UCL

CL

UCL

CL

Page 103: ASQ Six Sigma

CHECKSHEET

Page 104: ASQ Six Sigma

Check sheet

A convenient and compact format

for data collection

A Simple rule– Maximum

information with minimum writing

efforts and easy to fill

Page 105: ASQ Six Sigma

105

M/C No.

Comp.

DRG. No

Token No.

Op.

Qt. Prod.

Material Defect

1 2 3 4 5 6

No. Insp.

M/c Defects

A B C D………P Q R

Total

Remark

Check Sheet For Machining Operation

Location

Machining DefectMaterial Defect

Group Date Shift

1: Blow holes2: Cracks3: Hard Metal4: Eccentric5: Others6: Total

A: Dia.+ G: Length+ M: OblongB: Dia.- H: Length - N: TaperC: Ch+ I: Sp+ O: Hole ShiftedD: Ch- J: Sp- P: PCDVE: CDV+ K: D& T Size+ Q: Poor FinishF: CDV- L: D & T Size- R: Others

Page 106: ASQ Six Sigma

Graphs & Charts

Line chartBar chartMultiple bar ChartComponent bar

ChartRadar chart

Pie chart Gantt chart Pareto diagramScatter diagramControl chart

Graphs represent data pictorially. A picture can see what 1000 words can not tell.

Page 107: ASQ Six Sigma

Bar Chart

Bar graphs are parallel bars of identical width but differinglength to compare size of different quantities / things.

Line Chart

Line graphs manifest the overall trend in time series data by direction of their lines.

Pie charts makes it easy to grasp the breakdown of the components of a quantity over a certain period.

Pie Chart

Page 108: ASQ Six Sigma

Comparison of Machines A & B for weekly Rejection

11

5

10

21

23

10

43

13

20

14

11

68

13

20

15 15

11

0

5

10

15

20

25

1 2 3 4 5 6 7 8 9 10

Week Number

% R

ejec

tion

263 285201

435

133

375 321 307 294 348

244336

221

257

275

422

281 317 299

358

0

100

200

300

400

500

600

700

800

900

1 2 3 4 5 6 7 8 9 10

Week Number

Uni

ts P

rodu

ced

Comparison of Machines A & B for Units Produced

Multiple bar chart

Component bar chart

Page 109: ASQ Six Sigma

Pie Chart for Customer returned watches

• A – Glass Broken

• B - Stop

• C - Mvt. Trouble

• D - Defective Dial

• E - Regulation

• F - Stem Loose

• G - Others

A43%

B27%

C12%

D6%

E4%

F3%

G5%

Page 110: ASQ Six Sigma

Control Chart

Page 111: ASQ Six Sigma

X- Bar and R Chart

252015105Subgroup 0

2854

2849

2844

Sa

mp

le M

ea

n

Mean=2849

UCL=2853

LCL=2844

15

10

5

0Sa

mp

le R

ang

e

R=7.76

UCL=16.41

LCL=0

Xbar/R Chart for C1

Page 112: ASQ Six Sigma

0

10

20

30

40

50

60

70

801

2

3

4

5

6

7

8

9

1011

12

13

14

15

16

17

18

19

20

Series1

Radar Chart on ISO 9001-1994 Implementation

Page 113: ASQ Six Sigma

Type of work 1 2 3 4 5 6 7 8 9 10 11 12

Foundation work

Frame work

Dry-walling

Exterior touch up

Sheetrock work

Plumbing

Electrical wiring

Fit Fixtures

Paint interior wall

Interior touch up

Inspection delivery

Gantt Chart for Construction ActivityWeeks

Gantt Charts makes it easy to understand the

details of a plan and progress in its

implementation schedule.

Page 114: ASQ Six Sigma

Pareto Diagram

Vital few from Trivial many

41.7

60.7

76.8

87.594.6 100

0

10

20

30

40

50

Fish notfresh

Vegetablewilted

BreadStale

CashierRude

Meat notFresh

Eggs rotten

No.

of

com

plai

nts

0

10

20

30

40

50

60

70

80

90

100

Cum

Per

cent

age

Pareto Analysis of Customer Complaints

Page 115: ASQ Six Sigma

Pareto Principle

80% of problems are caused by less than 20% of probable causes

Establishes proof of the need

Identifies vital few

Page 116: ASQ Six Sigma

PARETO ANALYSIS: Outstanding branch wise

BRANCH BRANCH Rs. DUE RATIO TO TOTAL

CUM. %

A= 5.0

B= 2.5

C=10.0

D=20.0

E=45.0

F=1.5

G=1.0

H=1.5

Oth.=0.5

E

D

C

A

B

F

H

G

OTHERS

45.0

20.0

10.0

5.0

2.5

1.5

1.5

1.0

0.5

51.7

23.0

11.5

5.7

2.9

1.7

1.7

1.2

0.6

51.7

74.7

86.2

91.9

94.8

96.5

98.2

99.4

100.0

87.0 TOTAL 87.0 100.0

Page 117: ASQ Six Sigma

Pareto Analysis on Outstanding

51.7

74.7

86.291.9

94.8 96.5 98.2 99.4 100

0

10

20

30

40

50

E D C A B F H G O

Out

stan

ding

Val

ue

0

10

20

30

40

50

60

70

80

90

100

Cum

Per

cent

age

Branches

Page 118: ASQ Six Sigma

Pareto Diagram for Production Stoppage

A. M/C quality change

B. Intermediate conveyor

C. Power failure

D. Hopper/duct line jamming

E. Dryer drum coupling pin

F. B P full press problem

G. Dryer preventive

H. Nip roller

I. Rotary comb tripped

J. Comber jamming

K. Al conveyor idle roller

L. Fire

M. Accumulation

N. Drum seal changing

O. Fan tripping

P. Chain problem

Q. Fiber jamming

R. Zone gear box

S. Zone conveyor

0

5

10

15

20

25

30

35

40

45

A B C D E F G H I J K L M N O P Q R S

No.

of s

topp

ages

0

10

20

30

40

50

60

70

80

90

100

Cum

ulat

ive

%

Page 119: ASQ Six Sigma

Pareto Analysis of Complaints at a Laundry

35

60

75

8593 98 100

0

20

40

60

80

100

120

140

160

180

200

Latedelivery

Missing orwrongitems

Fadingcolours

Stains Creased ButtonsMissing

Stretchedor torn

No.

of

com

plai

nts

0

10

20

30

40

50

60

70

80

90

100

Page 120: ASQ Six Sigma

Brain Storming

generating large number of ideas by a group of people

Page 121: ASQ Six Sigma

Basic Rules

Defer evaluation

Fantasize freely

Generate quantity

Build on ideas

Page 122: ASQ Six Sigma

Defer Evaluation

Put critical faculties in cold storage- even constructive criticism.

Ensure a proper climate for acceptance of all sorts of ideas.

No idea should be treated as stupid.

Page 123: ASQ Six Sigma

Fantasize Freely

Don’t operate with your brakes on.

Participants are encouraged to generate ideas, no matter how fanciful they are.

Page 124: ASQ Six Sigma

Generate Quantity

Generate as many ideas as possible.

A pearl diver will be more successful in finding pearls, when he brings up 200 oysters than when he surfaces only 15-20 oysters.

Page 125: ASQ Six Sigma

Build on ideas

Idea of one participant is more effectively built up by another participant.

Page 126: ASQ Six Sigma

Steps in Brainstorming

Select the topic

Each member, in rotation gives ideas

Member offers only one idea per turn, regardless of how many he or she has

Continue till all ideas are exhausted

Ideas are recorded and displayed

Page 127: ASQ Six Sigma

Benefits

Individual is limited in generating ideas and group produces more ideas

Ideas are improved upon by members

Presence of others increases creativity

Pooling of ideas and resources is made possible by coming together as a group

Page 128: ASQ Six Sigma

CAUSE AND EFFECTDIAGRAM

Page 129: ASQ Six Sigma

Graphic tool to represent relationship between an effect and influencing causes

There can not be an effect without a cause.

Reduce incidence of subjective decision making.

Identify main causes X’s influencing Y

C & E Diagram

Page 130: ASQ Six Sigma

Construction of C & E Diagram

Define problemGather members for discussionConduct BrainstormingGroup causes into 4M’sMan, Material, Machine, MethodFor each cause, ask, “What goes wrong

that produces the effect”.Identify major causes

Page 131: ASQ Six Sigma

Cause and Effect Diagram for high petrol consumption

High Petrol Consumption

Procedure Driver Vehicle

MaterialsMaintenanceRoad

Restrictions

No turnOne way

CircuitousRoad

Frequentstops

Crossings

Traffic

Speed Breakers

Steep

Poorcondition

Potholes Irregularservicing

Falseeconomy

Negligence

Cloggedfilters

Low pressureIgnorance

Faulty pressure

TyresPetrol

Oil

Not changed

Low level

Incorrect viscosity

ImpuritiesIncorrectOctane no.

Additives

SparesSpurious

Inferior

Impatience

Craze

Always late

Riding onclutch

Lack of awareness

Pooranticipation

Wrong gears

Poor skill

Wrongculture

Badattitude

Inexperience

Body

Heavy

Shape

Technicaldetails

Carburetor

Spark plugs

LifeContacts

Fuel mix

Engine

High H.P

Cylinders

Page 132: ASQ Six Sigma

Cause & Effect Diagram

PROCESS MATERIALS

COOKING QTY OF WOOD QLTY TIME COOKING WATER (OLD/FRESH) VARIATION TEMP. IN

PENTOSANS IN

FINAL PULP INSTRUMENT

TRAINED UNTRAINED ACCURACY

PERSONNEL EQUIPMENTS

Page 133: ASQ Six Sigma

Uses of C & E Diagram

Trace out real root cause

Help evolve countermeasures

Making C & E an education in itself Everyone participating, learn more about their work.Is a focus for discussion.Shows level of expertise available.Can be used for any problem

Page 134: ASQ Six Sigma

HISTOGRAM

3

9

12

19

24

17

11

6

2

0

5

10

15

20

25

30

1.776 1.868 1.96 2.052 2.144 2.236 2.328 2.42 2.512

Consumption(KWh)

Freq

uenc

y

Page 135: ASQ Six Sigma

Histogram

Method of analyzing data

Data is condensed in a table

Tabulation is known as frequency distribution.

Presented by a Graph displaying distribution of data

Page 136: ASQ Six Sigma

Histogram

Graph is Characterized by 3 constituents

• centre ( mean)•width (spread-variation)•over all shape

3

9

12

19

24

17

11

6

2

0

5

10

15

20

25

30

1.776 1.868 1.96 2.052 2.144 2.236 2.328 2.42 2.512

Consumption(KWh)

Freq

uenc

y

Page 137: ASQ Six Sigma

Histogram Construction

Select a sample of min. 50 Record the measurements. Determine the range. Decide the no. of classes. Divide range into no. of classes Determine boundary or class limits. Prepare frequency distribution. Construct histogram (GRAPH).

Page 138: ASQ Six Sigma

Data on Metal Block thickness (in mm)

3.56 3.46 3.48 3.50 3.42 3.43 3.52 3.49 3.44 3.503.48 3.56 3.50 3.52 3.47 3.48 3.46 3.50 3.56 3.383.41 3.37 3.47 3.49 3.45 3.44 3.50 3.49 3.46 3.463.55 3.52 3.44 3.50 3.45 3.44 3.48 3.46 3.52 3.463.48 3.48 3.32 3.40 3.52 3.34 3.46 3.43 3.30 3.463.59 3.63 3.59 3.47 3.38 3.52 3.45 3.48 3.31 3.463.40 3.54 3.46 3.51 3.48 3.50 3.68 3.60 3.46 3.523.48 3.50 3.56 3.50 3.52 3.46 3.48 3.46 3.52 3.563.52 3.48 3.46 3.45 3.46 3.54 3.54 3.48 3.49 3.413.41 3.45 3.34 3.44 3.47 3.47 3.41 3.38 3.54 3.47

Range= Max. – Min.=3.68-3.30=0.38

No. of classes= 9 Class width= 0.5N=100

Page 139: ASQ Six Sigma

Frequency TableClass no. Class Boundaries Mid-value Frequency

1

2

3

4

5

6

7

8

9

3.275 – 3.325

3.325 – 3.375

3.375 – 3.425

3.425 – 3.475

3.475 – 3.525

3.525 – 3.575

3.575 – 3.625

3.625 – 3.675

3.675 – 3.725

3.30

3.35

3.40

3.45

3.50

3.55

3.60

3.65

3.70

3

3

9

33

37

10

3

1

1

Page 140: ASQ Six Sigma

Histogram for Metal Block Thickness

3 3

9

33

37

10

31 1

0

5

10

15

20

25

30

35

40

45

3.3 3.35 3.4 3.45 3.5 3.55 3.6 3.65 3.7

Thickness (in mm)

Freq

uenc

y

Page 141: ASQ Six Sigma

Histogram for Bearing Thickness

5

12

18

29

41

31

22

17

9

3

0

5

10

15

20

25

30

35

40

45

5.24 5.28 5.32 5.36 5.4 5.44 5.48 5.52 5.56 5.6

Thickness (in mm)

Freq

uenc

y

Page 142: ASQ Six Sigma

Histogram for Energy Consumption

3

9

12

19

24

17

11

6

2

0

5

10

15

20

25

30

1.776 1.868 1.96 2.052 2.144 2.236 2.328 2.42 2.512

Consumption(KWh)

Freq

uenc

y

Page 143: ASQ Six Sigma

Types of Histograms

Bell shaped

Symmetrical shape with a peak in middle

representing a normal histogram

3

9

12

19

24

17

11

6

2

0

5

10

15

20

25

30

1.776 1.868 1.96 2.052 2.144 2.236 2.328 2.42 2.512

Consumption(KWh)

Frequ

ency

Page 144: ASQ Six Sigma

Skewed to Left & Right

Skewed to Left

Caused by centering the process toward high end of the tolerance

Skewed to Right

Caused by centering the process toward low end of the tolerance..

Page 145: ASQ Six Sigma

Bimodal & Truncated

Bimodal : Two combined populations-- two shifts, operators, inspectors, suppliers, machine settings, gages, tools, machines, measurement locations, etc.

Truncated: This can happen when a process is not capable of meeting the specifications, parts are sorted from both ends, or too few classes are chosen.

Page 146: ASQ Six Sigma

Missing Centre Spike's at Tail (s)

Missing Centre : Centre of the distribution has been sorted from the rest. Portion may have been delivered to a customer with tighter specifications.

Spike's) at the Tail (s) : Parts in outer ends of distribution are probably being reworked to bring characteristic just within specifications.

Page 147: ASQ Six Sigma

XTrans = 1/XRaw

The Need for Transformations--Prediction from a ND is possible … Skew distribution Transformation

Before

After

Page 148: ASQ Six Sigma

Histogram Uses

To know--whether variation in data is due to chance or assignable causes.

To tell about Process Behavior

--about its capability to produce defect free output

Page 149: ASQ Six Sigma

Sources Of Variation

Common Causes

---Chance Causes Of Variation

Special Causes

--- Assignable Cause Of Variation

Page 150: ASQ Six Sigma

Common Cause Consists of combined effect of several sources of

uncontrollable variation inherent to a process.

Collective influence of common cause variation

defines natural process fluctuation and is known

as Chance causes of variation.

Process output is predictable

Process is said to be in Statistical Control

Page 151: ASQ Six Sigma

Special Cause

Variation has a large impact on performance.

Determination of source of impact makes

cause "assignable." and is termed as

assignable cause of variation.

If they exist, process or key characteristic is

said to be "out-of-control".

Out-of-control process is not predictable

Page 152: ASQ Six Sigma

3

9

12

19

24

17

11

6

2

0

5

10

15

20

25

30

1.776 1.868 1.96 2.052 2.144 2.236 2.328 2.42 2.512

Consumption(KWh)

Frequ

ency

Process Behavior It tells whether process is under control? Is it producing defect free output?

----process under control or

process variability

LSL USL

Process out Of control

USLLSL

process variability

Page 153: ASQ Six Sigma

Good Process Behavior

Shape close to normal curve

Mean at target value

Spread within Specification limits

Cp is greater than 1.67 and Cpk is greater than 1.33

Page 154: ASQ Six Sigma

SCATTER DIAGRAM

Page 155: ASQ Six Sigma

What: To study the possible relationship between two variables.

Why: Diagram make it clear whether a relationship exists, and shows the strength of relationship.

When: To test a theory that the 2 variables are related.

Page 156: ASQ Six Sigma

Examples:

Cutting speed and tool life Breakdown and equipment age Temperature & lipstick hardness Temperature and percent foam

in soft drinks Hardness and tensile strength

Page 157: ASQ Six Sigma

Different Scatter diagram Patterns

Page 158: ASQ Six Sigma

Scatter Diagram on Conveyor Speed vs. Severed Length

1000

1005

1010

1015

1020

1025

1030

1035

1040

1045

1050

5 5.5 6 6.5 7 7.5 8 8.5 9

Conveyor Speed (cm/sec)

Sev

ered

Len

gth

(mm

)

Page 159: ASQ Six Sigma

Uses:

Control Purpose

Replacing a destructive test by a non-destructive test

Study of Cause & Effect relationship

Process Optimization

Page 160: ASQ Six Sigma

Process Mapping

Page 161: ASQ Six Sigma

About This Module…

Process Mapping is a tool used to:

Clearly define processes

Identify areas where data collection should take place

Visualize activities involved in a process at the early stages of project development

Six Sigma, A Quest for Process PerfectionAttack Variation and Meet Goals

\DataFile\ProcessT.ppt

Page 162: ASQ Six Sigma

What We Will Learn …

Extending Flow Charts to Process MappingExtending Flow Charts to Process Mapping

1. The importance of process maps and the character of the product and process parameters.

2. The when, why and where to use process maps.

3. The x’s & y’s and X’s & Y’s and Y=f(x,X).

4. What to measure and control.

5. The need for process maps prior to FMEA’s, Gage Studies, DOE’s and SPC.

6. When the process map is completed.

7. How to use the tool for your process.

Page 163: ASQ Six Sigma

Process Management

ProcessProcess

• People• Equipment• Material• Money• Time

Resources

A

D

PC

InputInput

OutputOutput

Feedback

System

Basic Process Model

Page 164: ASQ Six Sigma

Cycle Time

• Time it takes to complete a process from beginning to end

Page 165: ASQ Six Sigma

Question

“How does a reduction in cycle time benefit an organization?”

Page 166: ASQ Six Sigma

A process map will identify opportunities for quality improvements.

A process map will identify opportunities for quality improvements.

Fundamentals of Process Mapping

A process map should describe: Major activities/tasks Sub processes Process boundaries Inputs Outputs Process & Product Parameters Customers & Suppliers Process owners

A process map should describe: Major activities/tasks Sub processes Process boundaries Inputs Outputs Process & Product Parameters Customers & Suppliers Process owners

A process map should be reviewed frequently and is never done.

A process map should be reviewed frequently and is never done.

A process map should document how the process actually operates, not how it is supposed to operate. (“As is,” not “To Be”)

A process map should document how the process actually operates, not how it is supposed to operate. (“As is,” not “To Be”)

Page 167: ASQ Six Sigma

Principles of Process Management

• Establish ownership.• Verify and describe the purpose of the

process.• Define the process, boundaries, and

interfaces.• Organize and train the process

improvement team.

Page 168: ASQ Six Sigma

Principles of Process Management

• Define and document the process. • Define points of control.• Establish process measurements.• Improve process.

Page 169: ASQ Six Sigma

Process Mapping Steps 1. IDENTIFY INPUTS AND OUTPUTS

– Identify Inputs (raw material, equipment, energy, 6M’s, etc.)

– Identify Outputs (measurable/assessable end product parameters)

2. SHOW ALL STEPS

– Value adding steps have the following characteristics: Something the customer would be willing to pay for Transforms the product or service Done right the first time

– Non value-added steps in the process are presented graphically: Evaluation points Rework points Scrap points Inventory

Page 170: ASQ Six Sigma

Steps (cont.)

3. SHOW OUTPUTS OF EACH STEP

– Show after each process step the characteristics that can impact the following step(s).

4. SHOW ALL PROCESS PARAMETERS AT EACH STEP

– List under each step the parameters that can change a product characteristic at that step (i.e., parameters that can be controlled at that step).

Page 171: ASQ Six Sigma

More Steps

N = Noise Factors - Uncontrollable - May be controllable, but are not controlled by decision.

C = Controllable factors - Process factors that can be changed to see the effect on product characteristics.

S = Standard Operating Procedures - A procedure is used to define and run those factors. Tooling, Fixtures.

CR = Critical Factors - Determined through FMEA, DOE, etc.

5. CLASSIFY THE PARAMETERS

– Classify the process parameters identified (in #4 above) into the following categories:

Page 172: ASQ Six Sigma

INPUTS OUTPUTSPROCESS

X’s Y’s

High Level Process Map

Inputs & Outputs

Page 173: ASQ Six Sigma

Processes Come in Hierarchies

Process - Level #1

Step #1

Process - Level #2

Step #1 Step #2

Process - Level #3

Step #3

Step #1 Step #2 Step #3

Step #3

Select the appropriate process level.Select the appropriate process level.

Step #2

Page 174: ASQ Six Sigma

Product and Process Parameters

Inputs OutputsSTEP OF PROCESS

Product Parameters, y’s

y = f(x)Process Parameters, x’s

Remember the 6 M’s

Man (People)

Machine (Equipment)

Method (Procedures)

Material

Measurement

Mother Nature (Environment)

KEY for (x’s)Process Parameters

N Noise Parameters C Controllable Process ParametersS SOP ParametersCR Critical Parameters

Page 175: ASQ Six Sigma

Why List the Parameters?

The x’s and X’s are the sources of variation in your process.

Variation causes defects.

The x’s must be under control to prevent defects.

The root cause of a defect is variation of the x’s!

The y’s and Y’s are the measured results of the process and include the failure modes of the process.

Defects are also outputs of a process step.

TO REDUCE DEFECTS!Defects

Page 176: ASQ Six Sigma

What Are We Measuring?

Measure the x’s, not the Y’s !

X’s

x’s

y’s

Y’s

_________ ?

_________ ?

_________ ?

_________ ?

We cannot control what we don’t measure!We cannot control what we don’t measure!

Inputs

Process Parameters

Process Step Outputs

Process Outputs

Page 177: ASQ Six Sigma

Is Workmanship an x?

Product Parameters, y’s

DEFECT FREE OUTPUT

DEFECTS IN PROCESS OUTPUT

y = f(x)Process Parameters, x’s

WORKMANSHIP ??

OPERATOR ??

INPUTS OUTPUTSPROCESS

X’s Y’s

6 M’s reminders:

Man (People)

Machine (Equipment)

Method (Procedures)

Material

Measurement

Mother Nature (Environment)

Page 178: ASQ Six Sigma

What Are the x’s and y’s?

Inputs Outputs

6 M’s reminders:

Man (People)

Machine (Equipment)

Method (Procedures)

Material

Measurement

Mother Nature (Environment)

Process Parameters, x’s

N

N

N

N

C

C

C

C

S

S

Product Parameters, y’s

y = f(x)

KEY for (x’s)Process Parameters

N Noise Parameters C Controllable Process ParametersS SOP ParametersCR Critical Parameters

X’s Y’s

Page 179: ASQ Six Sigma

The following may be helpful to identify process parameters that have a potential effect on the product parameters and process output:

Brainstorming

Literature review

Operators manuals

Work Instructions

Operator experience

Customer / supplier input

Engineering knowledge

Scientific theory

Remember the 6 M’s

Man (People)

Machine (Equipment)

Method (Procedures)

Material

Measurement

Mother Nature (Environment)

Identifying Product & Process Parameters

Page 180: ASQ Six Sigma

Completeness Checks

Inputs Outputs

Process Parameters, x’s

Are there y’s for every x in this step?

Is there a “good” type of y for every x ?

Is there a “bad” type of y for every x ?

Are x’s here that impact downstream y’s?

Does the map have input of extended team?

Product Parameters , y’s Good Bad = Defects Good Rejected = Defect Bad Accepted = Defect Horror Stories: What has

happened in the past that caused disasters?

Success Stories: What outputs of this step thrilled the customer(s)?

Are there x’s for each y in this step?

Are upstream x’s changing y’s of this step? How?

Step of the Process

y = f(x)

Remember the 6 M’s

Man (People)

Machine (Equipment)

Method (Procedures)

Material

Measurement

Mother Nature (Environment)

KEY for (x’s)Process Parameters

N Noise Parameters C Controllable Process ParametersS SOP ParametersCR Critical Parameters

Page 181: ASQ Six Sigma

Wave Solder Process

Flux: Kester

2% Solid FACTORPre Heat #1 Temperature

Pre Heat #2 Temperature

Pre Heat #3 Temperature

Solder Temperature

Emmersion Depth

Conveyer Speed Angle

Hot Air Knife Angle Pressure

S.G.: NA RANGE - - - - - 2.75-4.25 - 45-65 12-20NOMINAL 400 445 470 490 1/4" 3.75 N/A 60 17PSI

Current Setup: Specifications

LOAD INFIXTURE

INPUT

Bd OrientationBd SpacingBd AlignmentBd to Rail PositionCritical areas masked

LOAD ONCONVEYOR

FLUXFLUXAIR KNIFE

Solder in all holesSolder BridgingSolder InsufficientsFire Qty of Excess Flux

Lead SolderabilityAmount on Bd.Flux through holes to top sideDistribution on Bd.Þ Excessive SolderÞ BridgingÞ IciclesÞ Partially filled HolesCleanliness of Board

Conveyor speed Rail position over pot Conveyor angle Time req’d in Solder 4-Corner Fixture support Conveyor drive smoothness Finger condition Rail Straightness

Pressure Flux Brand Flux Type Thinner Cleanliness of flux Tritration level Stone Type Cleanliness of Stone Height over Stone Temperature Humidity Ambient Temp

Pressure of air knife Orientation Distance to board Air Knife used Angle of air knife Temperature

Masking Operator Board thickness 4-Corner support Bd. Spacing in Fixture Bd quantity in fixture Bd. position within fixture Front or rear Side Fixtures/conveyor width Bd Orientation Frame size/Board size Fixture mass. Fixture dimensions Vert. location bd.in fix. Component Orientation Component Density

TO PREHEAT

X’s Boards with components Solder Flux Electricity Machine Setup

KEY for (x’s)Process Parameters

Noise Parameters Controllable Process Parameters SOP Parameters Critical Parameters

Immersion depthRaised Carrier Frame cornerPoor wettingÞ Partial filled holesÞ Skip SolderingÞ BridgingÞ Excessive solder speedÞ Insufficient solderÞ BridgingÞ Cycle Time

Page 182: ASQ Six Sigma

Wave Solder Process (cont.)

Excess PressureÞ Solder BridgingÞ Insufficient solder/OpensInsufficient PressureÞ Solder BridgingTemp Too LowÞ Solder BridgingTemp Too HighÞ Insufficient

Solder/OpensÞ Damage BoardAngle Too SteepÞ Insufficient

Solder/OpensAngle Too ShallowÞ Solder Bridging

PREHEAT# 1

Temp -Zone 1 Temp - Zone 2 Temp - Zone 3 Time in Preheat 1 Resp time of

heater Stability of temp Distance to board Temp distribution Fixture warp Rail warp

SOLDER POT

Solder DistributionCoverage on boardSolder AppearanceSolder joint Quality

Solder Temp Ht of Pot/Position Solder Pot Angle Exit Point Amount of dross Solder Pump Speed Solder Height Solder Pump

Pressure Choke bar setting/adj Solder contact Solder type Solder tin content Solder Contam Baffle qual, hole

wear, bent condition, clean Board Deflection

PREHEAT# 2

Temp - Zone 2 Temp - Zone 1 Temp -Zone 3 Time in Preheat 2 Resp time of

heater Stability of temp Dist to board Temp distribution Fixture warp Rail warp

.

HOT AIR KNIFE

Position Dist to

board Temp Angle Air

Pressure Temp Dist

.

EXITWAVE SOLDER

Solder AppearanceSolder Joint Quality/DefectsOpen Solder JointsGood BoardsDirty BoardsScrap BoardsHot BoardsDamaged ComponentsLifted Components

PREHEAT# 3

Temp - Zone 3 Temp - Zone 1 Temp - Zone 2 Time in Preheat 3 Response time of

heater Stability of temp Distance to board Temp. Distribution Fixture warp Rail warp

Board TempFlux ConditionFlux ActivatedFlux Solvent drive offThermal ShockÞ Board WarpingExcess HeatÞ Excess SolderÞ Poor FilletsÞ Excess flow thruInadequate HeatÞ Solder splatterÞ Trapped GasÞ Solder BridgesÞ Poor flow thru (plated thru holes)

Y’sBoards:• Accept

ed • Reject

ed• Scrap

Workmanship Stds Samples Lighting Magnification Prod/Dmnd/Sch Census/Inspection

Staffing Inspection Sample (%) Eyesight Inspector Variation

OUTPUT INSPECTION

SCRAP

REWORK

KEY for (x’s)Process Parameters

Noise Parameters Controllable

Process Parameters

SOP Parameters Critical Parameters

Board TempFlux ConditionFlux ActivatedFlux Solvent drive offThermal ShockÞ Board WarpingExcess HeatÞ Excess SolderÞ Poor FilletsÞ Excess flow thruInadequate HeatÞ Solder splatterÞ Trapped GasÞ Solder BridgesÞ Poor flow thru (plated thru holes)

Board TempFlux ConditionFlux ActivatedFlux Solvent drive offThermal ShockÞ Board WarpingExcess HeatÞ Excess SolderÞ Poor FilletsÞ Excess flow thruInadequate HeatÞ Solder splatterÞ Trapped GasÞ Solder BridgesÞ Poor flow thru (plated thru holes)

y’sProduct Paramenters

Page 183: ASQ Six Sigma

The Importance of QuestionsNoise Parameters:

What are they? Are they impossible or impractical to control? How robust is the system to the noise?

Controllable Parameters: How are they monitored? How often are they verified? Are optimum target values known? How much variation is there around the target values? How consistent are they?

Standard Operating Procedures: Do they exist? Are they understood? Are they being followed? Are they current? Is operator certification performed? Is there an audit schedule?

Page 184: ASQ Six Sigma

Process Parameter Questions

What causes variation of the process parameter? How is the process parameter controlled? How often is the parameter out of control? Is there data on the parameter? Which of your process parameters should have

control charts on them? When should you place a control chart on a process

parameter? Which of your process parameters have control charts

on them? How are the control charts used? How do you know which process parameters to monitor? Should we focus on parameters of non value-added

steps?

Process Parameters:

Page 185: ASQ Six Sigma

Product Parameters:

Product Parameter Questions

What is the goal of the improvement effort? Is the product parameter qualitative or quantitative?

– An attribute or a variable? For the product parameters:

– Is larger better?– Is nominal best? – Is smaller better?– Is it dynamic in nature?

Is the concern for... – Process centering?– Process variation?– Both?

What is the process baseline for the product parameter? – What is the mean and sigma?

Page 186: ASQ Six Sigma

Product Parameters: Is the product parameter currently in statistical control? Is the product parameter affected by time? How much of a change in the product parameter do you

need/wish to detect? Do you know the expected distribution of the product

parameter? Is the measurement system adequate? Are there multiple responses of concern? What are the

priorities for optimization? What measurements are taken on product parameters? How do you know which product parameters to monitor? Which product parameters need control charts on them? Which product parameters have control charts on them? How are the control charts used?

More Product Parameter Questions

Page 187: ASQ Six Sigma

Process Map-Flow Charting (Step-by-Step)

Document entire flow of the process selected

Identify/classify the scope of the process

Identify/classifyupstream in-process product parameters

Classify/characterizeprocess parametersinto 3 main factors

Identify all valueand Non value-added operations

Identify the inputsand outputs of the process

Identify/classifymeasurementstaken on product & process parameters

Noise factors Standard operating procedures Controllable process parameters

Continue toupdate & classifyprocess map!

Develop initial list of process parameters along with currentoperating conditions

Page 188: ASQ Six Sigma

7. What Supplier Requirements

8. Process Controls/Dependencies

4. Who are Customers

Process owner’s requirements on the supplier

Specifications Cost Schedule

All work is a process All processes have

owners All processes can be

described as a verb and noun

All processes can be analyzed and improved

Specifications– Function– Reliability– Format

Cost Schedule

Procedures/Policies Training/Education Equipment/Facilities Quality AttitudesAny written document that controls/impacts a process

Performance skills

Certifications

Space required Processing

equipment

Personal attitude which is less than the requirement

2. What Output

3. What Input

feedback

feedback

1. What Process5. What Customer Requirements

6. Who are Suppliers

Consider Every Process Step

Page 189: ASQ Six Sigma

Causes of Process Map Failure

CONCERN RESPONSERequires extra effort - “We know the process - lets just move forward”

The process appears straight forward - then becomes difficult as you realize you do not understand process as well as you thought

The process map just seems to grow and grow and grow

Initial payoff is team understands process -- team members are not working on different set of assumptions. Use experts to help you through the mapping process

If necessary, adjust process boundaries -- initiate another improvement team

Think about approaching the problem hierarchically

Page 190: ASQ Six Sigma

What is the tool? Graphical method to illustrate the

details of a process

What will the tool identify/show? All process steps, value-added &

non value-added Input parameters (Xi,in)

End product parameters (Yi) In-process parameters (x’s & y’s) Characterization of all

parameters Defect/data collection points Steps needing FMEA’s Sources of variation identified

What is the tool? Graphical method to illustrate the

details of a process

What will the tool identify/show? All process steps, value-added &

non value-added Input parameters (Xi,in)

End product parameters (Yi) In-process parameters (x’s & y’s) Characterization of all

parameters Defect/data collection points Steps needing FMEA’s Sources of variation identified

When do you apply this tool? Always: to fully understand

process & process flow Find where/when/how defects

are being created Define elements of cycle time

What results can you expect? Systems needing MSE’s List of Factors for DOE’s Find the hidden factory Opportunities for process step

elimination (i.e. flow improvement)

Ways to re-layout the process Sources of variation reduced

When do you apply this tool? Always: to fully understand

process & process flow Find where/when/how defects

are being created Define elements of cycle time

What results can you expect? Systems needing MSE’s List of Factors for DOE’s Find the hidden factory Opportunities for process step

elimination (i.e. flow improvement)

Ways to re-layout the process Sources of variation reduced

Process Mapping Summary

Page 191: ASQ Six Sigma

Map Your Process

For the next session:• Map and characterize a critical part of your process.• Identify:

– The Inputs (X’s)– The Outputs (Y’s)– The Process Parameters (x’s) – The Product Parameters (y’s)– The process owner, supplier, & customer– Classify the parameters at each step– The next step to reduce defects in your process

Page 192: ASQ Six Sigma

What We Have Learned …

Extending Flow Charts to Process MappingExtending Flow Charts to Process Mapping

1. The importance of process maps and the character of the product and process parameters.

2. The when, why and where to use process maps.

3. The x’s & y’s and X’s & Y’s and Y=f(x,X).

4. What to measure and control.

5. The need for process maps prior to FMEA’s, Gage Studies, DOE’s and SPC.

6. When the process map is completed.

7. How to use the tool for your process.

Page 193: ASQ Six Sigma

Failure Modes and Effects Analysis

FMEA

Page 194: ASQ Six Sigma

About This Module…Failure Modes and Effects Analysis

Six Sigma, A Quest for Process PerfectionMeet Goals and Attack Variation

An FMEA is a systematic method for identifying,

analyzing, prioritizing and documenting potential

failure modes, their effects on system, product,

process performance and the possible causes of

failure.

\DataFile\FMEAform.xls \DataFile\CopyFMEA.xls|Datafile|causeeffecte.igx\Datafile\catapultflow.igx\Datafile\catapultC&E.igx

Page 195: ASQ Six Sigma

What We Will Learn…Failure Modes and Effects Analysis

1. As a Team, how to construct an FMEA and associated Action Plan

2. How the FMEA process ties to process mapping

3. The relationship between Failure Mode, Cause and Effect

4. The different types of FMEAs

Page 196: ASQ Six Sigma

Sample FMEA

Datafile/CopyFMEA.xls

Failure Effects

SEV Causes

OCC Controls

DET

RPN Action Recommended

Resp. Person

Schedule Date Action Taken

Actual Compl.

DatepS

pO

pD

prpn

Risk

Risk X

prpn

Must redo copy 6 Paper Jam 7

Periodic Maint. 7 294 Periodic preventive maintence Key Opr 3/1

PM Schedule created and implemented 2/15 6 3 7 126 3 378

Must redo copy 6

User misset size 6

Existing notes on copier 5 180

Place sign over copier outlining standard size enlarge/reduce or reliable mach to clearly indicate

standard reduce/enlarge Key Opr 2/20Place sign over

mach 2/15 6 3 2 36 1 36Must redo copy 6

User misset control 5

Existing notes on copier 4 120

Place sign to encourage user to utilize auto settings Key Opr 2/20

Place sign over mach 2/15 6 2 2 24 1 24

Must redo copy 6

Used landscape instead of portrait or vice versa 7

Tray Selection 2 84

Place note on ruler re tray selection Key Opr 1/20 Placed Note 1/15 6 2 1 12 1 12

Must redo copy 6

align marking not clear 4

Use Auto Feeder / align ruler 3 72

Enlarge marks for 8.5 " paper on ruler Key Opr 1/15 Enlarged marks 1/14 6 2 1 12 1 12

Must redo copy 6

Doc moved

when lid closed 5

Use Auto Feeder / align ruler 2 60

Place sign over copier re "Ensure align prior to copying or

use auto Feeder" Key Opr 1/15 Displayed Sign 1/14 6 1 1 6 1 6

Must redo copy 6

User selected

wrong tray 3

Auto select

function 3 54

Place sign over copier to encourage user to use auto tray

select Key Opr 2/25Place sign over

mach 2/20 6 2 3 36 1 36Must redo copy 6 Dirty Glass 6

Periodic Cleaning

SOP 1 36Place cleaning material near

copier Maint. 1/15Placed Cleaning

Matl 1/15 6 1 1 6 1 6

Page 197: ASQ Six Sigma

Why Use FMEAs?What is an FMEA?

Identify critical product characteristics and process variables

Prioritize product and process deficiencies in support of downstream improvement actions Help focus on prevention of product and process problems

Page 198: ASQ Six Sigma

Benefits of FMEA’sWhat is an FMEA?

Improves the quality, reliability and safety of products.

Helps increase customer satisfaction.

Reduces product development timing and cost.

Reduces the amount of rework, repair and scrap.

Documents and tracks actions taken.

Prioritizes deficiencies to focus improvement efforts.

Page 199: ASQ Six Sigma

Process - Level #1

Step #1 Step #2

Process - Level #2

Step #1 Step #2

Process - Level #3

Step #3

Step #1 Step #2 Step #3

FMEA - Level #1

FMEA - Level #2

FMEA - Level #3

Step #3

Process and FMEA HierarchiesWhat is an FMEA?

Page 200: ASQ Six Sigma

Steps Completed Prior to FMEA:– Charter Team– Develop and Characterize Process Map

FMEA Steps:1. Identify “Heavy Hitter” Process Step

2. Identify Associated y’s (Product Parameters)

3. Identify Failure Mode

4. Identify Failure Effects/Rate Severity

5. Identify Causes/Rate Occurrence

6. Identify Controls (if any)/Rate Detection

7. Calculate RPN

8. Prioritize by RPN Order

9. Determine Actions/Plan

10. Recalculate RPN Based on Plan

11. Take Action

Process FMEA StepsWhat is an FMEA?

Page 201: ASQ Six Sigma

Header Accessible from View Header/Footer in Excel

Workbook in Excel

FMEA FormWhat is an FMEA?

\DataFile\FMEAForm.xls

Page 202: ASQ Six Sigma

Cause(x’s)

FailureMode

Effect (y’s)

What is an FMEA?

Cause -Failure Mode -Effect Continuum

Page 203: ASQ Six Sigma

What is an FMEA?

The Cause and Effect Diagram Example

Admin/Service Example First produced in 1950 by Professor Kaoru Ishikawa - Also called the: Ishikawa Diagram Fish Bone Diagram

Developed to represent the relationship between some “effect and all possible “causes” influencing it.

Create using Igrafx:FailureEffect

Failure Mode (Defect)

Measurements Materials Manpower

Mother Methods MachinesNature

Page 204: ASQ Six Sigma

The Cause and Effect Diagram Example

Measurement

Reproducibility Repeatability

Linearity

Stability

Calibration

Methods

Vague

Out of date

Complex

Machines

Not maintained

Inadequate capability

Material

Late

Wrong quantity

Defective

Manpower

Inadequatetraining

Lack ofexperience

Distractions

Mother nature

Too humid

Too hot

Too cold

Defects

Cause and Effects Diagram

Datafile/Causeeffecte.igx

Page 205: ASQ Six Sigma

Copy Machine ExampleWhat is an FMEA?

• Our process is copying documents on a Xerox model XC1045 copy machine.

• First we will construct a process map

• Then we will construct a cause and effect diagram

• Finally we will complete an FMEA

Page 206: ASQ Six Sigma

Process: Making A CopyWhat is an FMEA?

Ma

ke C

op

ies

Place Document in Copier

Set number of

copies

Enter size required

Set light/dark settings

Select paper source

Press button

Retrieve copies

N HingesN Glass clean

Legend C Controllable Cr Critical N Noise P Procedure x Input

C Copies requiredCr Number button

C Size desiredCr Size button

C Darkness desired

C Size desiredx Paper

Cr Button

Document set correctlyGlass clean

Number of copies selected correctly

Size selected correctly

Darkness set directly

Correct paper tray selected

Copies CopiesRight numberRight contrastRight orientationRight sizeRight paper

Page 207: ASQ Six Sigma

The FMEA Process

Step 1: Identify “Heavy Hitter” Process Step

From the Process Map, identify the process step with the most likelihood of having failure modes with significant effects

Use defect data and/or team knowledge about failure modes when selecting process steps

Significant impact to the business? (COPQ, cycle time, fill rate, ...)

Use a Cause and Effect Diagram to capture brainstorming results.

After completing FMEA Steps #2-7 for all failure modes associated with this process step, return to this step and select the next most likely “Heavy Hitter” process step

Not all process steps will need to be analyzed by the FMEA

Page 208: ASQ Six Sigma

Step 2: Identify Associated y’sThe FMEA Process

From the Process Map, identify the y’s that are associated with the process step being investigated

As the y’s are the indications of a successful completion of the process step, they are crucial as a basis for determining failure modes

Page 209: ASQ Six Sigma

Step 3: Identify Failure Mode

• Brainstorm failure modes for the selected process step :– Identify the ways in which the process could fail to

generate each of the expected “y’s”

• Eliminate “duplicates” from brainstorm list• Are the failure modes from the same level of the process?• Are the failure modes specific?• Are the failure modes the most likely?• Do the failure modes provide good coverage of the

process step?• Have all y’s been considered?

The FMEA Process

Page 210: ASQ Six Sigma

Step 4: Identify Failure Effect/Rate Severity

The FMEA Process

Pick the most likely failure mode and brainstorm the most important Effects:

– FAILURE EFFECTS are the outcome of the occurrence of the failure mode on the process. The impact on the customer --- What does the customer experience as a result of the Failure Mode?

Identify each effect as being “Attribute” or “Variable”

Severity doesn’t change unless the design changes.

Page 211: ASQ Six Sigma

Step 5: Identify Causes/Rate OccurrenceThe FMEA Process Identify the most likely causes for each failure mode

using a Cause and Effect Diagram:

– CAUSES are the conditions that bring about the Failure Mode

Transfer the resulting information to the FMEA form

Assign an occurrence value (1-10) to the likelihood that each particular cause will happen and result in the failure mode

The occurrence score for each cause should be related to the likelihood of that cause resulting in the failure mode and producing the specific associated effect

Page 212: ASQ Six Sigma

Organize Brainstorming IdeasThe FMEA Process

Copy Misaligned

Manpower

Selected wrongorientation

Materials

Wrong Paper Size

Measurement

Wrong Size Selected

Machine

Alignment MarkingUnclear

Method

Document MovedWhen Lid was

Closed

MotherNature

Too Humid

What would you add?

Page 213: ASQ Six Sigma

Step 6: Identify Controls/Rate DetectionThe FMEA Process

Identify the current mechanisms in place which prevent the cause from occurring, or detect it before the product reaches the customer. Some examples of controls are SPC, training, maintenance, inspection, SOP etc.

Assign a detection value (1-10) based on an assessment of the likelihood that the current control mechanisms will detect the cause of the failure mode before it reaches the customer.

Don’t agonize over detectability.

Page 214: ASQ Six Sigma

The product of the estimates of severity

occurrence and

detection.

The RPN provides a relative priority for taking action

the bigger the RPN, the more important to address.

RPN = SEVERITY x OCCURRENCE x DETECTION

Step 7: Calculate Risk Priority Number The FMEA Process

Page 215: ASQ Six Sigma

8: Prioritize by RPN Order

Use the “Sort” command in Excel to order the spreadsheet in descending order of Risk Priority Number (RPN).

9: Determine Actions/Plan

Based on the causes found, determine actions that will minimize the effect of each cause, in priority order.

Steps 8 and 9The FMEA Process

Page 216: ASQ Six Sigma

10: Recalculate RPN Based on Plan Assuming the actions are carried out successfully, reassign

severity, occurrence and detectability.

Place these new ratings in the “predicted” columns (ps, po & pd).

Assign a rating from 1 to 5 for each action that will show the “risk” associated with each action (5 being the greatest risk). Place the rating in the “risk” column.

11: Take Action Based on the risk mitigation column (Risk * prpn), take the actions

indicated or reassign actions. Then….

Complete the actions indicated by the times stated!

Steps 10 and 11The FMEA Process

Page 217: ASQ Six Sigma

Failure Effects

SEV Causes

OCC Controls

DET

RPN Action Recommended

Resp. Person

Schedule Date Action Taken

Actual Compl.

DatepS

pO

pD

prpn

Risk

Risk X

prpn

Must redo copy 6 Paper Jam 7

Periodic Maint. 7 294 Periodic preventive maintence Key Opr 3/1

PM Schedule created and implemented 2/15 6 3 7 126 3 378

Must redo copy 6

User misset size 6

Existing notes on copier 5 180

Place sign over copier outlining standard size enlarge/reduce or reliable mach to clearly indicate

standard reduce/enlarge Key Opr 2/20Place sign over

mach 2/15 6 3 2 36 1 36Must redo copy 6

User misset control 5

Existing notes on copier 4 120

Place sign to encourage user to utilize auto settings Key Opr 2/20

Place sign over mach 2/15 6 2 2 24 1 24

Must redo copy 6

Used landscape instead of portrait or vice versa 7

Tray Selection 2 84

Place note on ruler re tray selection Key Opr 1/20 Placed Note 1/15 6 2 1 12 1 12

Must redo copy 6

align marking not clear 4

Use Auto Feeder / align ruler 3 72

Enlarge marks for 8.5 " paper on ruler Key Opr 1/15 Enlarged marks 1/14 6 2 1 12 1 12

Must redo copy 6

Doc moved

when lid closed 5

Use Auto Feeder / align ruler 2 60

Place sign over copier re "Ensure align prior to copying or

use auto Feeder" Key Opr 1/15 Displayed Sign 1/14 6 1 1 6 1 6

Steps 1-11:

The FMEA Process

\DataFile\CopyFMEA.xls

FMEA

Step 5Step 10

Step 7 & 8

Step 2 ID y’s

Step 11Step 4

Step 9Step 6Step 1 ID Process Steps

Step 3 ID Failure Modes

Page 218: ASQ Six Sigma

Process FMEA

Types of FMEA

• Helps analyze manufacturing and assembly processes to reduce the occurrence and improve detection of defects.

• Assists in the development of process control plans.

• Establishes a priority for improvement activities.• Documents the rationale behind process

changes and helps guide future process improvement plans.

• IS PROACTIVE! Should be started when new processes are designed or when old processes are changed.

Page 219: ASQ Six Sigma

Note: When completing a Process FMEA, first assume the material is good and the process is bad. Then assume that the process is good and the material is bad. Lastly, review the process for safety considerations.

Process FMEA Scoring Definition

Types of FMEA

Score DETECTION

10 1 in 2 Very High Absolute Uncertainty

9 1 in 3 Very High Very Remote

8 1 in 8 High Remote

7 1 in 20 High Very Low

6 1 in 80 Moderate Low

5 1 in 400 Moderate Moderate

41 in 2,000 Moderate Moderately High

31 in 15,000 Low High

21 in 150,000 Low Very High

1£1 in 1,500,00 Remote Almost Certain

SEVERITY CRITERIA OCCURRENCE

Hazardous Without Warning

Hazardous With Warning

Very High

High

Moderate

Low

Very Low

Minor

Very Minor

None

Page 220: ASQ Six Sigma

Design/Product FMEATypes of FMEA

• Helps to identify potential product failure modes early in the product development cycle.

• Increases the likelihood that all potential failure modes and their effects on assemblies will be considered.

• Assists in evaluating product design requirements and test methods.

• Establishes a priority for design improvement.• Documents the rationale behind design

changes and helps guide future development projects.

• IS PROACTIVE! Should be done when new products are designed or existing products are changed.

Page 221: ASQ Six Sigma

Defect FMEA

• Helps identify the root causes of defects.• Establishes a priority for improvement activities.• Documents plan of action.• Provides methodology to battle initial ground swell

of defects.• Focuses effort on defects with highest $ impact.• IS NOT PROACTIVE!

Types of FMEA

Page 222: ASQ Six Sigma

Scoring CriteriaTypes of FMEA

Score DETECTION10 Very High Absolute Uncertainty9 Very High Very Remote8 High Remote7 High Very Low6 Moderate Low

5 Moderate Moderate

4 Moderate Moderately High3 Low High2 Low Very High1 Remote Almost Certain

RISK: Optional field used to reflect the probability of completing actions.

SEVERITY CRITERIA OCCURRENCEHazardous Without WarningHazardous With WarningVery HighHighModerate

Low

Very LowMinorVery MinorNone

Note: To change header information, click on "View" then "Header".

Use actual defect quantities

Page 223: ASQ Six Sigma

The CatapultFMEA Exercise

Analyze the Catapult process using the FMEA tool. (Remember we want to get the “most bang for the buck”.)

25 minutes!

• Break into the Catapult teams• We have already constructed a process map• First, we will construct a cause and effect

diagram• Then we will complete at least two failure

modes for the most critical step(s) of our process

• Appoint a spokesman for your team to debrief the class on your progress, questions, etc.

• Complete the FMEA (FMEAform.xls) for the Catapult process before the third session (We will use this information for our DOE competition)

Page 224: ASQ Six Sigma

Catapult Process MapFMEA Exercise

Datafile/Catapultflow.igx

Assemble Catapult

Secure to tableSelect Catapult

SettingsSet Catapult

Pins

ShootMeasure distance

Record distance

Pins (2)ArmRubber BandBall

ClampTape MeasureTape

Aligned with tape ± 3 inches

Pull Arm to Proper Angle

Arm moves smoothly

Plan or Prediction equationComputer

Feasible settings

Correct settings

Positions Designated

OperatorConsistencyNo Parallax

OperatorLateral movement

Tape MeasureObservers positioned properly

Ball flys straight

Accurate measurement ± 2 inches

RecorderComputer

Correct angle

Stop

Correct distance recorded

Start

Page 225: ASQ Six Sigma

Complete the Diagram BelowFMEA Exercise

Datafile/CatapultC&E.IGX

Distance

MenMaterialMethod

MeasureMachine

Mother nature

Calculation procedureRubber Band

Ball

Release consistency

Angle measurement

Repeatability

Reproducibility

Arm moves freelyAir Conditioner

Page 226: ASQ Six Sigma

When To Update an FMEA?FMEA Summary

An FMEA should be updated whenever a change is being considered to a product’s:

design

application

environment

material

product’s manufacturing or assembly process

Page 227: ASQ Six Sigma

What is the tool?– Spreadsheet

What will the tool identify/show?– All product/process failure

modes, related effects, causes, & methods of controlling them

– Risk Priority Number (RPN) for action based on failure severity, probability of occurrence and detection capability

– Actions/plans to reduce elements of RPN

When do you apply this tool?– When evaluating product for

robustness (functionality, produceability, reliability)

– During early stages of defect reduction efforts to identify causes

– When identifying key process/product parameters and evaluating methods for controlling them

What results can you expect?– Learn to identify critical product/

process parameters– Achieve consensus on solutions and

methods of implementation– Detailed product/process

understanding

Summary of Product/Process FMEA’sFMEA Summary

Page 228: ASQ Six Sigma

Keys to Success

Identify purpose...BE SPECIFIC!

Understand effects...INVOLVE CUSTOMERS & SUPPLIERS!

Link to the process map.

Use to prioritize efforts, allocate resources.

Use as a risk assessment/prioritization tool based on predicted impact.

Use to build consensus on prioritization.

Encourage creativity...TEAMWORK!

PLAN!

ASK QUESTIONS!

FMEA Summary

Page 229: ASQ Six Sigma

Steps Completed Prior to FMEA:– Charter Team– Develop and Characterize Process Map

FMEA Steps:1. Identify “Heavy Hitter” Process Step

2. Identify Associated y’s (Product Parameters)

3. Identify Failure Mode

4. Identify Failure Effects/Rate Severity

5. Identify Causes/Rate Occurrence

6. Identify Controls (if any)/Rate Detection

7. Calculate RPN

8. Prioritize by RPN Order

9. Determine Actions/Plan

10. Recalculate RPN Based on Plan

11. Take Action

Process FMEA StepsWhat is an FMEA?

Page 230: ASQ Six Sigma

FMEA Appendix

Severity is an assessment of how serious the effect of the potential failure mode is on the customer. The customer in this case could be the next operation, subsequent operations, or the end user.

Occurrence is an assessment of the likelihood that a particular cause will happen and result in thefailure mode.

Detection is an assessment of the likelihood that the current controls (design and process) will detectthe cause of the failure mode, should it occur, thus preventing it from reaching your customer. The customer in this case could be the next operation, subsequent operations, or the end user.

Current Controls (for both design and process) are the mechanisms which prevent the cause of the failure mode from occurring, or detect the failure mode, should it occur, before the product reaches your “customer.” For example, current controls include SPC, inspections, written

procedures, training, preventive maintenance and all other activities that ensure a smooth running process.

Critical Characteristics are those items which affect customer safety and/or could result in non-compliance to regulations and thus require controls to ensure 100% compliance. These areusually process“settings” such as temperature, time, speed, etc.

Significant Characteristics are those items which require SPC and quality planning to ensure acceptable levels of capability.

Key Definitions for FMEA

Page 231: ASQ Six Sigma

TerminologyA. Process or Product Name – Description of Process or Product being analyzed.B.C.D.E.F.

G.

H.I.J.K.L.

M.

N.

O.P.Q.R.S.T.

Responsible – Name of Process Owner.Prepared By - Name of Agent coordinating FMEA study.FMEA Date – Dates of Initial and subsequent FMEA Revisions.Process Step/Part Number – Description of individual item being analyzed.Potential Failure Mode – Description of how the process could potentially fail to meet the process requirements and/or design intent, i.e. a description of a non-conformance at that Potential Failure Effects – Description of the effects of the Failure Mode upon the customer, i.e. what the next user of the process or product would experience or notice.SEV (Severity) – An assessment of the seriousness of the effect of the potential failure mode

RPN (Risk Priority Number) – The product of the Severity, Occurrence, and Detection Rankings i.e., RPN = SEV * OCC * DET.

DET (Detection) – An assessment of the probability that the current controls will detect the potential cause, or the subsequent failure mode.

Current Controls – Description of process controls that either prevent, to the extent possible, OCC (Occurrence) – Description of how frequently the specific failure cause is expected to Potential Causes – Description of how the failure could occur, described in terms of something

Resulting new RPN after corrective action.New DETECTION Rating after corrective action.New OCCURENCE Rating after corrective action.New SEVERITY Rating after corrective action.Actions Taken – Brief description of actual action and effective date.Responsibility – Person or group responsible for the Recommended Action.

Actions Recommended – Actions to reduce any or all of the Occurrence, Severity or Detection rankings.

FMEA Appendix

Page 232: ASQ Six Sigma

Introduction to Process Capability

Page 233: ASQ Six Sigma

About this Module

• Process capability enables the prediction of the

ability of any process to produce products and

services that meet their desired specifications.

• This module focuses on typical manufacturing

processes. Transactional and other

manufacturing processes are not discussed here.

• The principles of process capability will be

introduced and Minitab will be used to calculate

process capabilities.

Page 234: ASQ Six Sigma

Learning Objectives

At the conclusion of this module participants

will be able to:

1. Recognize the value of and uses for process

capability.

2. Calculate and explain the capability of

processes whose output is normally

distributed.

3. Predict the probability that the output of a

process will be within its specification limits.

Page 235: ASQ Six Sigma

We Live in a Statistical World

• Statistics have a pervasive influence on our lives– Every day there is another poll– Sampling is being used to perform many

aspects of the census– All major economic indicators are based on

samples– TV ratings are based on samples – Statistics determine insurance rates

• Quantum physics has demonstrated that probability determines the structure and operation of everything

• Statistics are a major enabler of Six Sigma

Basic Statistics

Page 236: ASQ Six Sigma

Types of StatisticsDescriptive statistics

is the process of describing the information we have. We summarize information from a sample or population give a clear understanding, or description, of the data.

Inferential statisticsis the process of using information from a smaller set of data (sample) to reach conclusions or inferences about a larger group (population). Usually, we have only sample information, not the entire population, and must infer understanding of the population based on our sample. We want these conclusions to be mathematically correct.

Definitions

Page 237: ASQ Six Sigma

Data TypesAttribute

Yes - noGood - badAccept - reject

DiscreteMultiples of whole unitsCan not be meaningfully dividedCount or classification

ContinuousCan be meaningfully divided into finer and finer increments of precision weight, length, voltage, time

Definitions

Page 238: ASQ Six Sigma

Mode - the most frequently occurring or most likely value

Median - the fiftieth percentile

(half the values are above and half below the

median)

m= = åPopulation mean X X X X

N

j

j11 2 3, , ...

X Sample mean=

Definitions

Mean - the sum of all members divided by the population size (average)

Measures of Central Tendency - Location

Page 239: ASQ Six Sigma

Population Versus SampleDefinitions

Statistics infer information about the parameters of the population.

Population SamplesSize N nLocation Average (Mean) m x

Dispersion: Variation Variance s2 s2

Std dev s s Range R = XHi-XLo

Page 240: ASQ Six Sigma

Quantifying Dispersion - SpreadDefinitions

X

x1

x2

xn

We could add the differences between each value x and the average of the values x however that would always yield zero. Therefore we square the difference between each x and x, to eliminate the negatives and emphasize the outliers, then take the average of the results. This is defined as the variance or 2. Obviously,

2s

Page 241: ASQ Six Sigma

1n

)XX(ˆs

n

1i

2

Frequency

Values of X

0

2

4

6

8

10

12

14

50 60 70 80 90 100 110

75 80 75 65 7085 70 70 85 7060 80 80 80 6580 75 75 70 8570 75 75 75 8580 55 70 70 8565 70 80 75 6575 85 90 80 6570 75 75 80 8075 95 90 60 65

Variable X measurements:

Number of Cases = 50Mean & Median = 75Standard Deviation = 8.3299Range = 40Variance = 69.388Minimum = 55Maximum = 95

i

nˆX

n

1iiX

Attributes of the Histogram - Location & SpreadDefinitions

Page 242: ASQ Six Sigma

Measures of Variability - Variance = Sigma Squared

Sigma Squared is a measure of dispersion of the population about the mean

Variances are not in the units of interest; standard deviations are in the units of interest

Variances are additive; standard deviations are not

additive... …so s1

2 + s22 + s3

2 is OK, but, s1 + s2 + s3 is NOT OK

Definitions

Page 243: ASQ Six Sigma

Measures of Variability – S. D. = Sigma Definitions

= the units of interest and is population standard

deviationm = population meanN = total populations = estimate of standard deviationn = sample size( )

( ) ( ) ( ) ( )N

XXXXX

N

22

3

2

2

2

1 ... --+-+-=s

m m m m

( ) ( ) ( ) ( )n - 1

XXXXXXXX n

22

3

2

2

2

1 ... --+-+-= s =̂

Standard Deviation is a measure of dispersion of the population about the mean

Page 244: ASQ Six Sigma

Normal Distribution

Each curve shown here has: An area of one A mean of zero A standard deviation of

Therefore, the same % of the population is under each of the curves for n about the mean.

Page 245: ASQ Six Sigma

Quantifying the Normal Distribution

-3 -2 -1 +1 +2 m s m s m s m m s m s+3m s 68.26%

95.46%

99.73%

Definitions

Page 246: ASQ Six Sigma

Area under the curve = 1s = 1m = 0

Any normal distribution can be converted to a standard normal distribution

f z ez

( ) 1

2

2

2

The formula for the probability density function is

Probability Density Function – Standard Normal DistributionDefinitions

Page 247: ASQ Six Sigma

The Standard Normal Transform

Permits conversion of any data point (X) into a Z value. This value allows us to look up the percentage of the population that is above and below the data point.

XZ

Definitions

Page 248: ASQ Six Sigma

Sample Questions………

Q. A new iron ore mine is discovered. 10 Kg ore is collected from each of 20 spots.

a. This procedure is called as __________ . b. Average is calculated from iron content of each of 20

spots. This value is called as ________________c. If we calculate average, range and standard deviation

from the iron content values of each lot, this data is called as ________________ .

d. Predictions are made regarding average iron content of the mine, total iron that can be extracted, impurities present etc. the analysis is called as ___________ .

e. The above calculations will give answers which will be 100% correct. True / False

Page 249: ASQ Six Sigma

Answers

a. The procedure is called as SAMPLING.

b. The value is called as STATISTIC.

c. The values are called as STATISTICS.

d. The analysis is called as STATISTICAL ANALYSIS.

e. The Statement is FALSE.

Page 250: ASQ Six Sigma

Basic Principle• All measures of process capability are based

on the concept of calculating the number of standard deviations between the process center and the specification limits.

• A Six Sigma process has six units of standard deviation between the process center and both specification limits.

USLLSL

Page 251: ASQ Six Sigma

Visualizing Process Capability

Process width

Specification width

Page 252: ASQ Six Sigma

Quantifying Process Capability

Process Sigma Yield1 0.68268952 0.95449973 0.99730024 0.99993675 0.99999946 1

If we assume the process is centered on the target and does not shift or drift the yields would be.

Yield of a one sigma process 0.683

LSL

USL

Page 253: ASQ Six Sigma

The Standard Deviation

m

1s

T USL

p(d)

Upper Specification Limit (USL)Target Specification (T)Lower Specification Limit (LSL)Mean of the distribution (m)Standard Deviation of the distribution (s) 3s

1 Sigma - 68%2 Sigma - 95%3 Sigma - 99.73 %

S (X – X)2

ns =

Page 254: ASQ Six Sigma

Calculating Yield

We know that Z is the number of units of standard deviation on a standard normal curve which has a mean of zero and a standard deviation of one. We also know any normal distribution can be converted to the standard normal using the Z equation.

xZ

If the specification limits are substituted for x we can determine the number of units of standard deviation between the process center and the specification limits on the standard normal curve. Then we can use the tables to look up the probability a value will be less than that number.

ˆ

X XZ

In most cases we do not know m or s so we substitute the sample statistics for the population parameters as shown.

Page 255: ASQ Six Sigma

Calculating Yield

The mean time taken for completing an operation is 500 hrs.

and this is normally distributed with a standard deviation of

100 hrs.

1. What is the probability that an operator taken at random

will take between 500 to 650 hrs to complete the

operation?

2. What is the probability that he will take > 700 hrs?

Express in graphical form also.

Page 256: ASQ Six Sigma

Calculating Yield – Example

1. What is the probability that an operator taken at random

will take between 500 to 650 hrs to complete the

operation?

= (650 – 500) / 100 = 1.5

Looking up z table, the corresponding value under the

Standard Normal Distribution is 0.4332. i.e. 43%.

xZ

Page 257: ASQ Six Sigma

Calculating Yield – Example

2. What is the probability that he will take > 700 hrs?

= (700 – 500) / 100 = 2

Looking up z table, the corresponding value under the

Standard Normal Distribution is 0.4772.

Thus the probability of an operator taking more than 700 hrs

is (0.5 – 0.4772) = 0.0228, i.e. slightly over 2%.

xZ

Page 258: ASQ Six Sigma

Calculating Yield Example

Consider a process that has the following specification limits: Lower Specification Limit (LSL) of -1 and a Upper Specification Limit of 1. Data indicates the process is centered on 0 with a standard deviation of 1. What is the yield?

USL

USL

USL-XZ =

σ̂1-0

Z = 11

Using tables or software to look up the area under the curve when Z=1 we find .8413. This means that 84.13% of the product has a value less than the upper specification limit.

LSL

LSL

LSL-XZ =

σ̂-1-0

Z = 11

Again using tables or software to look up the area under the curve when Z=-1 we find .1586. This means that 15.86% of the product has a value less than the lower specification limit.

Page 259: ASQ Six Sigma

What if the Process Shifts?

Generally speaking, processes have been observed to shift and/or drift 1.5 standard deviations over time. How would that effect the yield of a one sigma process?

10-1-2-3-4

LSL USL

Page 260: ASQ Six Sigma

Calculating Shifted Process Yield

USL

USL

LSL

LSL

USL-XZ =

σ̂1-0-1.5

Z = .51

LSL-XZ =

σ̂-1-0-1.5

Z = 2.51

Using tables or software to look up the area under the curve when Z=-.5 we find .3085

Again using tables or software to look up the area under the curve when Z=-2.5 we find .0062.

Subtracting the two we obtain .3023

Page 261: ASQ Six Sigma

Using These Principles

• Process capability and process capability

indices are unambiguous and will be

addressed first.

• Process sigma is somewhat ambiguous

and will be addressed second.

Page 262: ASQ Six Sigma

Process Capability Terms

See formulae on next page.

Measures of the ability of a process to produce compliant products/services:Cp - Short-term process capability For a limited period of time (not including shifts and drifts) Does not consider process centering Also known as process entitlement

Cpk - Short-term process capability index For a limited period of time (not including shifts and drifts) Does consider process centering

Pp - Long-term process capability For an extended period of time (including shifts and drifts) Does not consider process centering

Ppk - Long-term process capability index For an extended period of time (including shifts and drifts) Does consider process centering

Page 263: ASQ Six Sigma

Specification Width (s)Short-Term Process Width

=

Specification Width (s)Long-Term Process Width

=

Lesser of: or

Lesser of: or

Capability Formulae

Cp =

Pp =

Cpk=

Ppk=

ST

USL-LSL

LT

USL-LSL

ST

USL-X

LT

USL-X

ST

X-LSL

LT

X-LSL

Page 264: ASQ Six Sigma

Using MinitabThe data is continuous so test for normalityStat>Basic Statistics>Normality Test

Page 265: ASQ Six Sigma

The Normality Test

1.0081.0061.0041.0021.0000.9980.9960.9940.992

99.99

99

95

80

50

20

5

1

0.01

Caps

Perc

ent

Mean 1.000StDev 0.001986N 750AD 0.619P-Value 0.107

Probability Plot of Caps

Worksheet: Bottle Caps.MTW

Normal

The P value is > .05 therefore do not reject the assumption of normality.

Page 266: ASQ Six Sigma

Using Minitab to Calculate Process Capability

Page 267: ASQ Six Sigma

Minitab Results

LSL Target USL

LSL 0.995Target 1USL 1.005Sample Mean 1.00006Sample N 750StDev(Within) 0.00198431StDev(Overall) 0.00198636

Process Data

Z.Bench 2.26Z.LSL 2.55Z.USL 2.49Cpk 0.83

Z.Bench 2.26Z.LSL 2.55Z.USL 2.48Ppk 0.83Cpm 0.84

Overall Capability

Potential (Within) Capability

% < LSL 0.40% > USL 0.67% Total 1.07

Observed Performance% < LSL 0.54% > USL 0.64% Total 1.18

Exp. Within Performance% < LSL 0.54% > USL 0.65% Total 1.19

Exp. Overall Performance

WithinOverall

Process Capability of Caps

Worksheet: Bottle Caps.MTW

Let’s examine this in detail

Page 268: ASQ Six Sigma

Process Data

1.005

0

1.003

5

1.002

0

1.000

5

0.999

0

0.997

5

0.996

0

0.994

5

LSL Target USL

LSL 0.995Target 1USL 1.005Sample Mean 1.00006Sample N 750StDev(Within) 0.00198431StDev(Overall) 0.00198636

Process Data

Z.Bench 2.26Z.LSL 2.55Z.USL 2.49Cpk 0.83

Z.Bench 2.26Z.LSL 2.55Z.USL 2.48Ppk 0.83Cpm 0.84

Overall Capability

Potential (Within) Capability

% < LSL 0.40% > USL 0.67% Total 1.07

Observed Performance% < LSL 0.54% > USL 0.64% Total 1.18

Exp. Within Performance% < LSL 0.54% > USL 0.65% Total 1.19

Exp. Overall Performance

WithinOverall

Process Capability of Caps

Worksheet: Bottle Caps.MTW

Calculated directly from the data. The within standard deviation is the pooled standard deviation of the subgroups.

Page 269: ASQ Six Sigma

Observed Performance

1.005

0

1.003

5

1.002

0

1.000

5

0.999

0

0.997

5

0.996

0

0.994

5

LSL Target USL

LSL 0.995Target 1USL 1.005Sample Mean 1.00006Sample N 750StDev(Within) 0.00198431StDev(Overall) 0.00198636

Process Data

Z.Bench 2.26Z.LSL 2.55Z.USL 2.49Cpk 0.83

Z.Bench 2.26Z.LSL 2.55Z.USL 2.48Ppk 0.83Cpm 0.84

Overall Capability

Potential (Within) Capability

% < LSL 0.40% > USL 0.67% Total 1.07

Observed Performance% < LSL 0.54% > USL 0.64% Total 1.18

Exp. Within Performance% < LSL 0.54% > USL 0.65% Total 1.19

Exp. Overall Performance

WithinOverall

Process Capability of Caps

Worksheet: Bottle Caps.MTW

The percent of product that was outside of the upper and lower specification limits in this data set.

Page 270: ASQ Six Sigma

Expected Within Performance

1.005

0

1.003

5

1.002

0

1.000

5

0.999

0

0.997

5

0.996

0

0.994

5

LSL Target USL

LSL 0.995Target 1USL 1.005Sample Mean 1.00006Sample N 750StDev(Within) 0.00198431StDev(Overall) 0.00198636

Process Data

Z.Bench 2.26Z.LSL 2.55Z.USL 2.49Cpk 0.83

Z.Bench 2.26Z.LSL 2.55Z.USL 2.48Ppk 0.83Cpm 0.84

Overall Capability

Potential (Within) Capability

% < LSL 0.40% > USL 0.67% Total 1.07

Observed Performance% < LSL 0.54% > USL 0.64% Total 1.18

Exp. Within Performance% < LSL 0.54% > USL 0.65% Total 1.19

Exp. Overall Performance

WithinOverall

Process Capability of Caps

Worksheet: Bottle Caps.MTW

The percent of product that is expected to be outside of the upper and lower specification limits on an short term basis. This projection is based on the within standard deviation and the process mean.

Page 271: ASQ Six Sigma

Expected Overall Performance

1.005

0

1.003

5

1.002

0

1.000

5

0.999

0

0.997

5

0.996

0

0.994

5

LSL Target USL

LSL 0.995Target 1USL 1.005Sample Mean 1.00006Sample N 750StDev(Within) 0.00198431StDev(Overall) 0.00198636

Process Data

Z.Bench 2.26Z.LSL 2.55Z.USL 2.49Cpk 0.83

Z.Bench 2.26Z.LSL 2.55Z.USL 2.48Ppk 0.83Cpm 0.84

Overall Capability

Potential (Within) Capability

% < LSL 0.40% > USL 0.67% Total 1.07

Observed Performance% < LSL 0.54% > USL 0.64% Total 1.18

Exp. Within Performance% < LSL 0.54% > USL 0.65% Total 1.19

Exp. Overall Performance

WithinOverall

Process Capability of Caps

Worksheet: Bottle Caps.MTW

The percent of product that is expected to be outside of the upper and lower specification limits on an long term basis. This projection is based on the overall standard deviation and the process mean.

Page 272: ASQ Six Sigma

Potential Within Capability

1.005

0

1.003

5

1.002

0

1.000

5

0.999

0

0.997

5

0.996

0

0.994

5

LSL Target USL

LSL 0.995Target 1USL 1.005Sample Mean 1.00006Sample N 750StDev(Within) 0.00198431StDev(Overall) 0.00198636

Process Data

Z.Bench 2.26Z.LSL 2.55Z.USL 2.49Cpk 0.83

Z.Bench 2.26Z.LSL 2.55Z.USL 2.48Ppk 0.83Cpm 0.84

Overall Capability

Potential (Within) Capability

% < LSL 0.40% > USL 0.67% Total 1.07

Observed Performance% < LSL 0.54% > USL 0.64% Total 1.18

Exp. Within Performance% < LSL 0.54% > USL 0.65% Total 1.19

Exp. Overall Performance

WithinOverall

Process Capability of Caps

Worksheet: Bottle Caps.MTW

Z USL and Z LSL are calculated using the process mean, the respective specification limits and the within standard deviation.Z bench is calculated by putting the projected within yield (.982) left hand tail of a standard normal then looking up the respective Z score.Cpk is calculated 1/3 of the lesser of Z USL or Z

LSL.

Note: Minitab uses within to describe short term variation and overall to describe long term variation.

Page 273: ASQ Six Sigma

Overall Capability

1.005

0

1.003

5

1.002

0

1.000

5

0.999

0

0.997

5

0.996

0

0.994

5

LSL Target USL

LSL 0.995Target 1USL 1.005Sample Mean 1.00006Sample N 750StDev(Within) 0.00198431StDev(Overall) 0.00198636

Process Data

Z.Bench 2.26Z.LSL 2.55Z.USL 2.49Cpk 0.83

Z.Bench 2.26Z.LSL 2.55Z.USL 2.48Ppk 0.83Cpm 0.84

Overall Capability

Potential (Within) Capability

% < LSL 0.40% > USL 0.67% Total 1.07

Observed Performance% < LSL 0.54% > USL 0.64% Total 1.18

Exp. Within Performance% < LSL 0.54% > USL 0.65% Total 1.19

Exp. Overall Performance

WithinOverall

Process Capability of Caps

Worksheet: Bottle Caps.MTW

Z USL and Z LSL are calculated using the process mean, the respective specification limits and the overall standard deviation.Z bench is calculated by putting the projected within yield (.981) left hand tail of a standard normal then looking up the respective Z score.Ppk is calculated as 1/3 of the lesser of Z USL or Z LSL.

Page 274: ASQ Six Sigma

Within - Between

1.005

0

1.003

5

1.002

0

1.000

5

0.999

0

0.997

5

0.996

0

0.994

5

LSL Target USL

LSL 0.995Target 1USL 1.005Sample Mean 1.00006Sample N 750StDev(Within) 0.00198431StDev(Overall) 0.00198636

Process Data

Z.Bench 2.26Z.LSL 2.55Z.USL 2.49Cpk 0.83

Z.Bench 2.26Z.LSL 2.55Z.USL 2.48Ppk 0.83Cpm 0.84

Overall Capability

Potential (Within) Capability

% < LSL 0.40% > USL 0.67% Total 1.07

Observed Performance% < LSL 0.54% > USL 0.64% Total 1.18

Exp. Within Performance% < LSL 0.54% > USL 0.65% Total 1.19

Exp. Overall Performance

WithinOverall

Process Capability of Caps

Worksheet: Bottle Caps.MTW

This process is very stable as indicated by the Within and Between lines being very close together.

Page 275: ASQ Six Sigma

Calculating Cpk and Ppk

Page 276: ASQ Six Sigma

Calculating Cpk and Ppk

1.005

0

1.003

5

1.002

0

1.000

5

0.999

0

0.997

5

0.996

0

0.994

5

LSL Target USL

LSL 0.995Target 1USL 1.005Sample Mean 1.00006Sample N 750StDev(Within) 0.00198431StDev(Overall) 0.00198636

Process Data

Cp 0.84CPL 0.85CPU 0.83Cpk 0.83

Pp 0.84PPL 0.85PPU 0.83Ppk 0.83Cpm 0.84

Overall Capability

Potential (Within) Capability

PPM < LSL 4000.00PPM > USL 6666.67PPM Total 10666.67

Observed PerformancePPM < LSL 5355.08PPM > USL 6432.04PPM Total 11787.12

Exp. Within PerformancePPM < LSL 5395.59PPM > USL 6478.48PPM Total 11874.07

Exp. Overall Performance

WithinOverall

Process Capability of Caps

Worksheet: Bottle Caps.MTW

CPL and CPU are calculated using the process mean, the respective specification limits and the within standard deviation.Cp is calculated by putting the projected within yield (.982) left hand tail of a standard normal then looking up the respective Z score.Then dividing by 3. Cpk is the lesser of CPL or CPU.

Page 277: ASQ Six Sigma

Calculating Cpk and Ppk

1.005

0

1.003

5

1.002

0

1.000

5

0.999

0

0.997

5

0.996

0

0.994

5

LSL Target USL

LSL 0.995Target 1USL 1.005Sample Mean 1.00006Sample N 750StDev(Within) 0.00198431StDev(Overall) 0.00198636

Process Data

Cp 0.84CPL 0.85CPU 0.83Cpk 0.83

Pp 0.84PPL 0.85PPU 0.83Ppk 0.83Cpm 0.84

Overall Capability

Potential (Within) Capability

PPM < LSL 4000.00PPM > USL 6666.67PPM Total 10666.67

Observed PerformancePPM < LSL 5355.08PPM > USL 6432.04PPM Total 11787.12

Exp. Within PerformancePPM < LSL 5395.59PPM > USL 6478.48PPM Total 11874.07

Exp. Overall Performance

WithinOverall

Process Capability of Caps

Worksheet: Bottle Caps.MTW

PPL and PPU are calculated using the process mean, the respective specification limits and the overall standard deviation.Pp is calculated by putting the projected within yield (.9813) left hand tail of a standard normal then looking up the respective Z score.Then dividing by 3. Ppk is the lesser of PPL or PPU.

Page 278: ASQ Six Sigma

A Process that Drifts

Consider a similar process that does change over time. The data is in Caps Drift.MTW.First test for normality

Page 279: ASQ Six Sigma

Normality Test

1.00501.00251.00000.99750.9950

99.99

99

95

80

50

20

5

1

0.01

Caps Drift

Perc

ent

Mean 1.000StDev 0.001291N 720AD 0.326P-Value 0.520

Probability Plot of Caps Drift

Worksheet: Caps Drift.MTW

Normal

Do not reject the assumption of normality.

Page 280: ASQ Six Sigma

Capability Analysis

Page 281: ASQ Six Sigma

Capability Analysis

1.00501.00351.00201.00050.99900.99750.9960

LSL Target USL

LSL 0.995Target 1USL 1.005Sample Mean 0.999998Sample N 720StDev(Within) 0.00102066StDev(Overall) 0.00129055

Process Data

Z.Bench 4.76Z.LSL 4.90Z.USL 4.90Cpk 1.63

Z.Bench 3.70Z.LSL 3.87Z.USL 3.88Ppk 1.29Cpm 1.29

Overall Capability

Potential (Within) Capability

% < LSL 0.00% > USL 0.00% Total 0.00

Observed Performance% < LSL 0.00% > USL 0.00% Total 0.00

Exp. Within Performance% < LSL 0.01% > USL 0.01% Total 0.01

Exp. Overall Performance

WithinOverall

Process Capability of Caps Drift

Worksheet: Caps Drift.MTW

This process is changing over time as indicated by the difference between the Within and Between lines.Plot this data using a control chart.

Page 282: ASQ Six Sigma

Process Capability Exercise 1

Data indicate the process is centered with a standard deviation of .02. Calculate the yield.

1 ± .06 Inches

Page 283: ASQ Six Sigma

Exercise 1 Visualizing the Answer

Design width(.12 Inches)

Process average

+.02 +.04 +.06-.06 -.04 -.02

There are 3 units of standard deviation between the process average and the specification limits therefore this is a 3 sigma process (short term).

Page 284: ASQ Six Sigma

Exercise 1 Calculating the Yield

USL

USL

LSL

LSL

USL-XZ =

σ̂1.06-1

Z = 3.02

LSL-XZ =

σ̂.94-1

Z = 3.02

Using tables or software to look up the area under the curve when Z=3 we find .9986

Again using tables or software to look up the area under the curve when Z=-3 we find .00135.

Subtracting the two we find a yield of .9973

Page 285: ASQ Six Sigma

Exercise 2

Assume a process owner has asked you to analyze the data in Process Capability Exercise 1.MTW. Parts A and B are made on different machines in lots (subgroups) of 5. The customer has established specification limits of 10 ± .1 and requires a Ppk of 1.33.

Prepare a brief presentation to describe your analysis and recommendations? Remember to present data practically, graphically and analytically.

Page 286: ASQ Six Sigma

Exercise 2 Normality Tests

10.210.110.09.99.8

99.99

99

95

80

50

20

5

1

0.01

Part A

Perc

ent

Mean 10.00StDev 0.05049N 750AD 0.420P-Value 0.324

Probability Plot of Part A

Worksheet: Process Capability Exercise 1.MTW

Normal

10.210.110.09.99.8

99.99

99

95

80

50

20

5

1

0.01

Part B

Perc

ent

Mean 10.00StDev 0.05647N 750AD 0.248P-Value 0.752

Probability Plot of Part B

Worksheet: Process Capability Exercise 1.MTW

Normal

No reason to reject the assumption of normality for either part.

Page 287: ASQ Six Sigma

Exercise 2 Process Capabilities

Page 288: ASQ Six Sigma

Exercise 2 Part A Process Capability

10.1210.0810.0410.009.969.929.88

LSL Target USL

LSL 9.9Target 10USL 10.1Sample Mean 10.0009Sample N 750StDev(Within) 0.0496334StDev(Overall) 0.0504922

Process Data

Cp 0.67CPL 0.68CPU 0.67Cpk 0.67

Pp 0.66PPL 0.67PPU 0.65Ppk 0.65Cpm 0.66

Overall Capability

Potential (Within) Capability

% < LSL 1.87% > USL 2.80% Total 4.67

Observed Performance% < LSL 2.10% > USL 2.30% Total 4.40

Exp. Within Performance% < LSL 2.28% > USL 2.49% Total 4.77

Exp. Overall Performance

WithinOverall

Process Capability of Part A

Worksheet: Process Capability Exercise 1.MTW

Page 289: ASQ Six Sigma

Exercise 2 Prepare the Control Charts

Page 290: ASQ Six Sigma

Control Chart Shows Process Stability

1361211069176614631161

10.05

10.00

9.95

Sample

Sam

ple

Mean

__X=10.0009

UCL=10.0675

LCL=9.9343

1361211069176614631161

0.2

0.1

0.0

Sample

Sam

ple

Range

_R=0.1154

UCL=0.2441

LCL=0

444

4

Xbar-R Chart of Part A

Worksheet: Process Capability Exercise 1.MTW

Page 291: ASQ Six Sigma

Process Capability Part B

10.1410.0810.029.969.909.84

LSL Target USL

LSL 9.9Target 10USL 10.1Sample Mean 9.99961Sample N 750StDev(Within) 0.0496334StDev(Overall) 0.0564727

Process Data

Z.Bench 1.71Z.LSL 2.01Z.USL 2.02Cpk 0.67

Z.Bench 1.43Z.LSL 1.76Z.USL 1.78Ppk 0.59Cpm 0.59

Overall Capability

Potential (Within) Capability

% < LSL 4.13% > USL 4.00% Total 8.13

Observed Performance% < LSL 2.24% > USL 2.16% Total 4.39

Exp. Within Performance% < LSL 3.89% > USL 3.77% Total 7.66

Exp. Overall Performance

WithinOverall

Process Capability of Part B

Worksheet: Process Capability Exercise 1.MTW

Page 292: ASQ Six Sigma

Control Chart Shows Time Based Variation

1361211069176614631161

10.05

10.00

9.95

9.90

Sample

Sam

ple

Mean

__X=9.9996

UCL=10.0662

LCL=9.9330

1361211069176614631161

0.2

0.1

0.0

Sample

Sam

ple

Range

_R=0.1154

UCL=0.2441

LCL=0

51

1

1

51

111

1

11

51

1

444

4

Xbar-R Chart of Part B

Worksheet: Process Capability Exercise 1.MTW

Page 293: ASQ Six Sigma

Confidence Intervals

Page 294: ASQ Six Sigma

About This Module…

\DataFile\PurchOrd.mtw\DataFile\PwrSuply.mtw\DataFile\Conf-Int.mtw\DataFile\OEack.mtw

Six Sigma, A Quest for Process PerfectionMeet Goals and Attack Variation

Confidence Intervals (CI) permit us to state that we

are X% confident that the population parameter of

interest is at most a specified interval from the

sample statistic.

Page 295: ASQ Six Sigma

1. Significance of confidence intervals

2. How to calculate confidence intervals for:

– Means

– Standard deviations or Variation

What We Will Learn...

Page 296: ASQ Six Sigma

Mean and Standard Deviation statistics are:– estimates of the population Mu’s (m) and

Sigma’s (s) – based on one sample

Variability exists from sample to sample

By using statistically based confidence intervals, uncertainty can be quantified

Usually, 95% confidence intervals are calculated

Confidence in the Midst of Uncertainty?

The chances are approximately 95 out of 100 that the calculated confidence interval contains the population parameter, or…

With 95% certainty, the population parameter is inside the confidence interval.

Nin

ety-

five

Per

cent

Cer

tain

Page 297: ASQ Six Sigma

Population vs. Sample

Population

Sample

How representative is this sample?

Population is the entire area of interest.

Sample is a subset of the population.

What is the relationship between the population and the sample?

Page 298: ASQ Six Sigma

Confidence Interval Symbols and Definitions

Measure PopulationParameter

SampleStatistic

Use

Mean

Z ÷øöç

èæ ³30n

t ÷øöç

èæ <30n

X

Variance s2 2cs2

StandardDeviation s 2cs

ProcessCapability

Cp 2c

Proportion pF or Z (approx)

Alpha Risk a Typically.05

m

Cp^

^p

s is known

Page 299: ASQ Six Sigma

Confidence Intervals (CI)

CI take the general form :

C.I.=Statistic +/- K * (Standard Deviation)

Statistic= Mean, Variance, CP, etc.

K = Constant based on a statistical distribution

CI reflect the sample to sample variation of our point estimates

We will look at CI for: m , sX , and C P

Page 300: ASQ Six Sigma

The Student t distribution is a family of bell shaped (Normal like) distributions that vary by degrees of freedom (sample size) - the fewer degrees of freedom, the wider and flatter the distribution.

What is the Student t-distribution?

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

-4-3

.5 -3-2

.5 -2-1

.5 -1-0

.5 00.

5 11.

5 22.

5 33.

5 4

DF2 DF10 DF30

Page 301: ASQ Six Sigma

t-Distributions, Normal Approximation, Risk

STATISTICS FOREXPERIMENTERS-- BHH

To give an idea of the values of t compared to Z for 95% ( a = 0.05), look at the table below:

Sample t-value Z-value 5 2.78 1.96 10 2.26 1.96 20 2.09 1.96 30 2.05 1.96 100 1.98 1.96 1000 1.96 1.96

ta/2=0.025 a/2= 0.025

a = risk

We can use Z to estimate t if

and s is known30n ³

Page 302: ASQ Six Sigma

Hypothesis Testing

Page 303: ASQ Six Sigma

About This Module…

Six Sigma, A Quest for Process PerfectionMeet Goals and Attack Variation

Hypothesis Testing helps: Determine if there is a statistically significant

difference between two relatively small samples Quantify the risks of making an incorrect decision

Page 304: ASQ Six Sigma

1. How to test variable dataa. Use a t-test to compare two means b. Alpha (a) and Beta (b) Risksc. Use a paired t-test to compare paired

treatmentsd. Use test for equal variances

2. How to test discrete dataa. Compare proportionsb. Compare discrete data

What We Will Learn

Page 305: ASQ Six Sigma

Design:Determine if two alternate design changes are significantly different.

Manufacturing:Determine if two different types of material wear differently.

Administrative/Transactional / Service:Determine if the change to a process affected the cycle time.

Real World Scenario

Page 306: ASQ Six Sigma

Purposes of Hypothesis Testing

Determine if there is a real difference between ? and ? .

Use relatively small samples to answer questions about the population.

Quantify the associated risks.

Page 307: ASQ Six Sigma

ExampleOld Design New Design

89.7 84.781.4 86.1

84.8 91.987.3 86.379.7 79.385.1 86.2

81.7 89.1

83.7 83.784.5 88.5

To answer this, we need some fundamentals of significance testing first!

Hard disk transfer speed (megabytes per second) is marginal. A new design is proposed.

An Engineering Change Notice (ECN) is incorporated

Is the new design better?

Page 308: ASQ Six Sigma

Steps in Hypothesis Testing

1. Define the problem

2. Determine the objectives

3. Establish the Hypothesis– Write the Null Hypothesis

(H0)– Write the Alternative

Hypothesis (Ha)

4. Determine the appropriate statistical test (assume distribution Z, t, F)

5. State the alpha risk (usually 5 %)

6. State the beta risk (usually 10-20 %)

7. Establish the effect size (delta)

8. Compute the sample size

9. Develop a sampling plan

10.Select the samples

11. Conduct the test and collect data

12.Calculate the test statistic (Z, t, or F) from the data

13.Determine the probability that the calculated test statistic has occurred by chance

14. If that probability is less than alpha, reject H0

15. If that probability is greater than alpha, do not reject H0

16.Translate the statistical conclusion into a practical solution

Page 309: ASQ Six Sigma

Used to assess evidence provided by sample data to reject, or fail to reject a claim about a population parameter.

Null hypothesis (Ho) is the statement we assess.

Ho is usually stated as, “there is no difference”.

Alternate hypothesis (Ha) is usually stated as “there is a difference”.

We fail to reject Ho unless there is convincing evidence to reject it.

Ho

Ha

Ho

Ha

Ho p p

Ha p p

a b

a b

a b

a b

a b

a b

:

:

:

:

:

:

m mm ms ss s

=

¹

=

¹

=

¹

Typical Examples

Significance Tests

Page 310: ASQ Six Sigma

What does 5% Level of Significance Mean?

This means that we will reject the null hypothesis if

the difference between the sample statistic and the

hypothesized population parameter is so large that

it would occur, on an average, only 5 or fewer

times in every 100 samples when the

hypothesized population parameter is correct.

Page 311: ASQ Six Sigma

This risk is typically set at 5%.

Type I and II Errors: Associated Risks

Type I errors are made when we reject the null hypothesis when in fact it is true.

Type II errors are made when we fail to reject the null hypothesis when in fact it is false.

Alpha (a) risk is the probability of making a type I error.

Risks are set before the test or experiment is conducted

This risk is typically set at 10%

Beta (b) risk is the probability of making a type II error.

Page 312: ASQ Six Sigma

Ho not rejected Ho rejected

Ho should not be rejected (Ho is true)

CorrectDecision

Type II orconsumer’s risk = b P(Type II)

Ho should be rejected (Ho is false)

Type I orproducer’s risk a = P(Type I)

CorrectDecision

a is the risk of finding a difference when there really isn’t one.b is the risk of not finding a difference when there really is one.

Action

State of Nature

The Risk Truth Table

Page 313: ASQ Six Sigma

Remember:

a is the risk of finding a difference when there really isn’t one.

b is the risk of not finding a difference when there really is one.

b a

Ho Ha

Now we can determine if the ECN improved performance

Another Look at Risks

Page 314: ASQ Six Sigma

Normal Distribution and t Distribution

When Population SD is Known

When Population SD is Not Known

Sample size n is > 30

Normal distribution, z table

Normal distribution, z table

Sample size < 30, and we can assume population is approx normal

Normal distribution, z table

t distribution, t table

Page 315: ASQ Six Sigma

P Value

P value is the smallest level of significance that

would lead to rejection of the null hypothesis Ho.

eg. supposing Ho were true, what is the

probability of getting a value of x-bar this far from

the population mean? This probability is called a

prob value or p-value.

Page 316: ASQ Six Sigma

Manual Test Null Hypothesis m1 † m2

2 21 2

1 2 ,1 2

Difference Upperbound *

Difference Upperbound -1.99 1.7459*1.57

Difference Upperbound .756

df

s sX X t

n n

The upper bound for the difference in the means indicates the difference between the means of these populations could be as great as .756 (at the 95% confidence level). Therefore, the evidence is not statistically significant to conclude that the difference between the new design and the old design is less than 0. Fail to reject Ho.

Page 317: ASQ Six Sigma

Manual Test Null Hypothesis m1 † m2

1 2( , ) 2 2

1 2

1 2

-1.26

.112

df

X Xt

s sn n

P

P> .05 therefore fail to reject Ho.

Page 318: ASQ Six Sigma

Hypothesis Testing Decision Tree

Ho: M1=M2=M3…Ha: At least 2 are differentMinitab: Stat-Nonparametric-Mann-Whitney (or) Stat-Nonparametric-Kruskal-Wallis (or) Stat-Nonparametric-FreidmansM1=Median sample 1, etc.

Ho: M1 = Target Ha: M1 TargetMinitab: Stat-Nonparametric-1 Sample - sign (or) Stat-Nonparametric-1 Sample Wilcoxon(Also used for paired comparisons Ho: M1-M2=0)M1=Median or sample 1M target = Target Median

HypothesisTesting

Continuous Data(One factor only)

Attribute Data

Contingency Table

Proportions Testing (2 factors only)

Ho: 2 factors are independentHa: 2 factors are dependentMinitab: Stat-tables-Chi square test

Ho: P1=P2 Ha: P1 P2Minitab: Stat-Basic Stat-1or 2 proportions

Normality test

Ho:s1=s2=s3…Ha: At least 1 is differentMinitab: Stat-ANOVA-Test for Equal VariancesFor only 2 s, this is similar to an F-test: F=(S1)2/(S2)2If Fcalc>Fcrit, reject null(Use Chi-Squared for 1 sample)

Normal

2 or more samples

Levene’s Test

2 or More Samples

1 Sample

Ho: Data is NormalHa: Data is NOT NormalMinitab: Stat-Basic Stat-Normality TestUse Anderson-Darling

Chi-Square Bartlett’s Test/F-Test

Non-normal

1 Sample 2 or More Samples

1 Sample T Test

Paired T Test (Variance =)

One Way ANOVA

2 Sample T Test

Ho: s1=sTarget Ha: s1 s TargetMinitab: Stat-Basic Stat-Graphical SummaryIf s target falls within C1: then fail to reject Ho

Ho: m1=mTarget Ha: m1 m TargetMinitab: Stat-Basic Stat-1 Sample-T(Also used for paired comparisons:Ho: m1=m2=0)

Ho:s1=s2=s3… Ha: s1 At least 2 are differentMinitab: Stat-ANOVA-Test for Equal VariancesFor only 2 ss, this is same as F-test: Stat>BasicStat>2 VariancesF=(S1)2/(S2)2If Fcalc>Fcrit, reject Ho

Ho: m1=m2=m3=… Ha: m1 at least 2 are differentMinitab: Stat-ANOVA-One Way(Caution Bartlett’s p<0.05; assumes=variances)

Ho: m1=m2 Ha: m1 m2Minitab: Stat-Basic Stat-2 Sample-T(Compares Means using pooled Std Dev)Check box to assume equal variances orCheck box to assume unequal variances

2 SamplesHo: m1-m2=0 Ha: m1-m2 0Minitab: Stat-Basic Stat-Paired T(Compares Means when observations are paired or dependent in a pairwise manner)

1 Sample Z TestHo: m1=mTarget Ha: m1 m TargetMinitab: Stat-Basic Stat-1 Sample-Z(Also used for paired comparisons: Ho:m1=m2=0)Sample Size >=30 s is known

Page 319: ASQ Six Sigma

Regression and Correlation

Page 320: ASQ Six Sigma

About This Module…

\DataFile\Correlat.mtw\DataFile\Yarn.mtw\DataFile\Cases.mtw\DataFile\Water.mtw \DataFile\RMystery.mtw\DataFile\R-Exampl.mtw\DataFile\Callque.mtw\DataFile\Pizza.mtw\DataFile\Cases.xls\DataFile\CEO-COMPENSATION.xls\DataFile\Realestate.xls\DataFile\Oilcons.mtw

Six Sigma, A Quest for Process PerfectionMeet Goals and Attack Variation

Correlation Analysis is used to quantify:the degree of linear association between variables

Regression Analysis is used to quantify:the functional relationship between variables

Page 321: ASQ Six Sigma

What We Will Learn1. Correlation

– How to measure the linear relationship between two variables

– The correlation coefficient

– Implication of the correlation coefficient “r”

2. Regression

– Definition of the regression line and how it is developed

– How to calculate and analyze a regression equation

– How to analyze relationships between an independent variable

– and one or more dependent variables using regression

– How to interpret r2

– Understanding and analyzing residuals

– How to use the regression ANOVA table

Page 322: ASQ Six Sigma

ADMINISTRATIVE

A software company wants to know the relationship between calls in queue and service time.

MANUFACTURING

A customer and supplier disagree on the quantity received by customer versus several months’ quantity ordered for a given lead time.

DESIGN

A chemical engineer, designing a new process, wants to investigate the relationship between key input variables and stack loss of ammonia.

Real World Examples

Page 323: ASQ Six Sigma

Regression and Correlation

Regression and Correlation analyses show us

how to determine both the nature and the

strength of a relationship between two variables.

In regression analysis we develop an estimating

equation relating the dependent and independent

variables. i.e. how much percent of variation can

be explained by the regression equation.

In correlation analysis we determine the degree

to which the variables are related.

Page 324: ASQ Six Sigma

Regression Analysis

Used to fit lines and curves to data

The fitted lines

– Quantify the relationship between the process variables (X’s) and process performance (Y)

– Help identify the vital few X’s

– Enable predictions to be made

– Identify the impact of controlling the process variables (X’s)

Produces an equation to match the line

Page 325: ASQ Six Sigma

Terms

Correlation – A measure of linear association – Used when both X and Y are continuous

r values range from:– Perfect positive relationship = 1– No relationship = 0– Perfect negative relationship = -1

Regression – Provides the basis for predicting the values of a variable

from the values of one or more other variables– Used with a continuous Y and continuous Xs, or

continuous Y and categorical Xs

r2 - proportion of variation of Y explained by the prediction equation

Page 326: ASQ Six Sigma

A Word of Caution

• It is important that we consider the relationships

found by regression to be relationships of

association but not necessarily of cause & effect.

• That is unless we have specific reasons for

believing that the values of the dependent

variable are caused by the values of the

independent variable(s), do not infer causality

from the relationships we find by regression.

Page 327: ASQ Six Sigma

Correlation Illustrated

0

5

10

15

20

0 2 4 6 8 10 -30

-25

-20

-15

-10

-5

0

0 2 4 6 8 10

0

2

4

6

8

10

12

0 2 4 6 8 10

Correlation = 1 Correlation = - 1

Correlation = 0

Page 328: ASQ Six Sigma

Correlation Example

Is this reasonable? Are you comfortable with .959? What does it mean to you? How does the data actually look? How would you find out?

Correlation of Station 1 and Station 2 = 0.959, P-Value = 0.000

Two test stations are used to measure power supply voltage. Is there a correlation?

\DataFile\Correlat.mtw

Minitab: Stat>basic stat>correlation

The two are highly correlated (.959)

?

Page 329: ASQ Six Sigma

Plot the DataGraph>ScatterPlots

Page 330: ASQ Six Sigma

The Data

Station 2

Sta

tion 1

9.69.49.29.08.88.6

9.4

9.3

9.2

9.1

9.0

8.9

8.8

8.7

8.6

8.5

Scatterplot of Station 1 vs Station 2

Worksheet: Correlat.MTW

If all of the data points were on the diagonal line, would we have perfect correlation?

Let’s try regression

Page 331: ASQ Six Sigma

Regression

Fitted line plot is used when there is only one predictor.

Page 332: ASQ Six Sigma

Example 1 (cont.)

In what ways is this graph different from the preceding one?

What are the implications?

What action would you take?

Station 2

Sta

tion 1

9.69.49.29.08.88.6

9.5

9.4

9.3

9.2

9.1

9.0

8.9

8.8

8.7

8.6

S 0.0557288R-Sq 92.0%R-Sq(adj) 91.5%

Fitted Line PlotStation 1 = 1.020 + 0.8729 Station 2

Worksheet: Correlat.MTW

Slide 225 was actual line – this is a fitted line. Can be used for prediction.

Page 333: ASQ Six Sigma

ii bXa Y

By minimizing the residual sum of squares, we get a best fit line of the form:

a = coefficient of the constant term or intercept b = coefficient of the predictor, X

Best Fit Line

Test Piece

Case

s

100908070605040

100

90

80

70

60

50

40

S 11.5131R-Sq 49.4%R-Sq(adj) 47.7%

Fitted Line PlotCases = 22.47 + 0.7546 Test Piece

Worksheet: cases.MTW

Page 334: ASQ Six Sigma

Statistical Process Control

Page 335: ASQ Six Sigma

About This Module…

Six Sigma, A Quest for Process PerfectionMeet Goals and Attack Variation

Control charts portray process performance andseparate causes of variation:

• Random• Assignable

Control Chart Systems are:• A proven technique for improving productivity• Effective in defect prevention• Prevent unnecessary process adjustments• Provide diagnostic information• Provide information about process capability

\DataFile\Attribut mtw\DataFile\Variable.mtw

Page 336: ASQ Six Sigma

1. Control charts are a powerful tool to hold the gains.

2. How control charts discriminate between common cause and assignable cause variation.

3. Why control charts must be designed to fit the data type and the control purpose.

What We Will Learn.

Page 337: ASQ Six Sigma

Process Variation

Process variation is theresult of:• Common causes.• Special (assignable)

causes.

Page 338: ASQ Six Sigma

Common Causes

• Result in normal process variation.

• Are specific to each process.• Can be reduced by changing

the process.

Page 339: ASQ Six Sigma

Special (Assignable) Causes

• Are attributed to something outside of the process.

• Result in abnormal process variation.• Do not result in process improvement

if eliminated.

Page 340: ASQ Six Sigma

Uses of Control Charts

1) Attain a state of statistical control: • All subgroup averages and ranges within control limits - no

assignable causes of variation present

2) Monitor a process

3) Determine process capability

What happens after an out-of-control situation occurs at the core of a successful SPC program?

Juran’s Quality Control Handbook, 4th edition, page 24.7

Page 341: ASQ Six Sigma

General Concepts

w = some characteristic of interest

= mean of each sample

Sw = standard deviation of w

Upper Control Limit

Centerline =

Lower Control Limit

Therefore 99.73% of points will be within the control limits unless there is an assignable cause

WX

3 wUCL X S

3 wLCL X S X

Page 342: ASQ Six Sigma

Control Chart Selection Tree

Type of data

Count or Classification

Discrete

Fixed or variable

opportunity?

Count

C Chart

Fixed

U Chart

Variable Fixed or variable

opportunity?

Attribute

NP Chart

Fixed

P Chart

Variable

Subgroup >1?

Variable

IMR Chart

No

X Bar and Ror

X Bar and S

Yes

Supplement with EWMA if

CTQ is sensitive to

small process shifts

Page 343: ASQ Six Sigma

X and R Control Chart Formulae & Constants

2

4

3

X Control Limits =X ± A R

R Upper Control Limit = D R

R Lower Control Limit = D RSample

SizeA2 D3 D4 d2

2 1.880 - 3.267 1.1283 1.023 - 2.574 1.6934 .729 - 2.282 2.0595 .577 - 2.114 2.3266 .483 - 2.004 2.5347 .419 .076 1.924 2.7048 .373 .136 1.864 2.8479 .337 .184 1.816 2.970

10 .308 .223 1.777 3.078

Page 344: ASQ Six Sigma

Creating Control Charts for Variables

\DataFile\Variable.mtw

Page 345: ASQ Six Sigma

Creating an X-bar and R Chart

Page 346: ASQ Six Sigma

An X-Bar and R Chart

Sample

Sam

ple

Mean

45403530252015105

41

40

39

38

__X=40.000

UCL=41.294

LCL=38.706

Sample

Sam

ple

Range

45403530252015105

4.5

3.0

1.5

0.0

_R=2.243

UCL=4.743

LCL=0

5

1

66

1

11

1

1

1

Xbar-R Chart of measure1, ..., measure5

Worksheet: Variable.MTW

The numbers show violations of the assumption of control. The nature of the violation is given in the session window.

Page 347: ASQ Six Sigma

X-Bar and R Chart Session WindowTest Results for Xbar Chart of measure1, ..., measure5

TEST 1. One point more than 3.00 standard deviations from center line.

Test Failed at points: 7, 10, 13, 16, 17, 29, 46

TEST 5. 2 out of 3 points more than 2 standard deviations from center line (on

one side of CL).

Test Failed at points: 10, 17, 47

TEST 6. 4 out of 5 points more than 1 standard deviation from center line (on

one side of CL).

Test Failed at points: 7, 32, 34

* WARNING * If graph is updated with new data, the results above may no

* longer be correct.

Page 348: ASQ Six Sigma

StatGuide Interprets the Tests

Page 349: ASQ Six Sigma

Comparing the Suppliers

Sample

Sam

ple

Mean

24222018161412108642

41

40

39

__X=39.894

UCL=41.207

LCL=38.580

Sample

Sam

ple

Range

24222018161412108642

4

2

0

_R=2.278

UCL=4.816

LCL=0

Sample

Sam

ple

Mean

24222018161412108642

42

40

38

__X=40.106

UCL=41.384

LCL=38.829

Sample

Sam

ple

Range

24222018161412108642

4

2

0

_R=2.214

UCL=4.683

LCL=0

1

5

1

5

56

5

1

11

1

1

Xbar-R Chart of measure1, ..., measure5

Worksheet: Variable.MTW(Supplier = 1)

Xbar-R Chart of measure1, ..., measure5

Worksheet: Variable.MTW(Supplier = 2)

Supplier 2’s process is less stable than Supplier 1’s process.

Page 350: ASQ Six Sigma

Add Dates to Control Charts

Adding dates to the control charts may help identify potential sources of shifts.

Page 351: ASQ Six Sigma

Adding Dates Indicates When the

Shift Occurred

9/19/20069/13/20069/7/20069/1/20068/28/20068/22/20068/16/20068/10/20068/4/20067/31/2006

12

11

10

9

Date

Sam

ple

Mean

__X=10.568

UCL=11.850

LCL=9.286

9/19/20069/13/20069/7/20069/1/20068/28/20068/22/20068/16/20068/10/20068/4/20067/31/2006

4.5

3.0

1.5

0.0

Date

Sam

ple

Range

_R=2.222

UCL=4.699

LCL=0

2

222

22

6

5

666

Xbar-R Chart of Stacked Data 1s

Worksheet: Variable data.MTW

Page 352: ASQ Six Sigma

Detecting Gradual Process Drift

Sample

Sam

ple

Mean

403632282420161284

12

11

10

9

__X=10.568

UCL=11.850

LCL=9.286

Sample

Sam

ple

Range

403632282420161284

4.5

3.0

1.5

0.0

_R=2.222

UCL=4.699

LCL=0

2

22

22

2

6

5

6

66

Xbar-R Chart of Stacked Data 1s

Worksheet: Variable.MTW

The tests detect the process shift but it would have been detected earlier if the control limits had been based on the first 20 data points.

Page 353: ASQ Six Sigma

Detecting Gradual Process DriftMinitab calculates control limits based on the entire data set be default. Freezing control limits detects shifts earlier than using the entire data set to calculate limits.

Sample

Sam

ple

Mean

403632282420161284

12

11

10

9

__X=10.112

UCL=11.360

LCL=8.864

Sample

Sam

ple

Range

403632282420161284

4.5

3.0

1.5

0.0

_R=2.164

UCL=4.575

LCL=0

2

22

22

2

222

2

1

2

1

6

66

5

Xbar-R Chart of Stacked Data 1s

Worksheet: Variable.MTW

Page 354: ASQ Six Sigma

Rational Subgrouping• Usually consecutive units• Must come from a single distinct population• Within subgroup, variation should be white noise only• Between subgroups should capture variation due to black noise

1) Subgroup needs to represent the distinct population

2) Establish minimum subgroup size to reflect the within variation

3) Establish sample frequency to capture the between variation

4) Collect data maintaining the sequential information

Donald J. Wheeler has six guiding principles for subgrouping in a rational manner.

• Never knowingly subgroup unlike things together• Minimize variation within each subgroup• Maximize opportunity for variation between subgroups• Average across noise not across signals• Treat charts in accordance with the use of the data• Establish standard sampling procedures

Page 355: ASQ Six Sigma

When to Increase Sample Size

If the sample size is too small, assignable causes may produce real effects that are relatively small and unimportant. In this case, it may not be economical to take action.

To minimize the number of these “nuisance” causes, the sample size should be increased using the following techniques:

• Identify characteristics• Determine logical nature of subgroups• Identify sampling sequence• Measurement methods proven to be accurate

Page 356: ASQ Six Sigma

1. Control charts are a powerful tool to hold the gains

2. How control charts discriminate between common cause and assignable cause variation

3. Why control charts must be designed to fit the data type and the control purpose

What We Have Learned.

Page 357: ASQ Six Sigma

Lean EnterpriseA Formula for Organizational Success

Page 358: ASQ Six Sigma

Agenda

1. Introduction to Lean, Wastes

2. 5S WPO & Visual Management

3. Standard Work

4. Value Stream Mapping

5. Quick changeover

6. Poka-yoke

7. Continuous Improvement

8. Kaizen Blitz

9. Starting Lean

Page 359: ASQ Six Sigma

Introduction to Lean and 7 Wastes

• Identify and Eliminate

the 7 Wastes

Page 360: ASQ Six Sigma

Brief History of Lean

• Craftsman to mass production

• Mass production to lean production

• Lean production: Ford to Toyota

– Frederick Taylor

– Taiichi Ohno

– Shigeo Shingo

– James Womack

• From shop floor to office and support functions

then to service industry

Page 361: ASQ Six Sigma

Craft Manufacturing

Late 1800’s

Car built on blocks as workers walked around Built by craftsmen with pride Components hand-crafted, hand-fitted Excellent quality Very expensive Few produced

Page 362: ASQ Six Sigma

Mass Manufacturing

• Assembly line - Henry Ford 1920s

Low skilled labor, simplistic jobs, no pride in work Interchangeable parts Lower quality Affordably priced for the average family Billions produced – identical

Model ‘T’

Page 363: ASQ Six Sigma

Lean History – Japan

• Sakichi Toyoda at his textile mills (20’s–30’s) • Toyota Motor Company’s Kiichiro Toyoda and

Taiichi Ohno made innovations (40’s) in assembly lines that provided efficient, customer-focused, streamlined processes with flow, variety, and short lead time—Toyota Production System (TPS); to face competition of GM and Ford after WWII when key need was flexibility.

• Taiichi Ohno and Shigeo Shingo developed Lean based on TPS

Page 364: ASQ Six Sigma

Lean Manufacturing

Cells or flexible assembly lines Broader jobs, highly skilled workers, proud of

product Interchangeable parts, even more variety Excellent quality mandatory Costs being decreased through process

improvement Global markets and competition.

Page 365: ASQ Six Sigma

What is Lean?

“A business system for organizing and managing product development, operations, suppliers, and customer relations that requires less human effort, less space, less capital and less time to make products with fewer defects to precise customer desires compared with the previous system of mass production.”

Lean Lexicon, Lean Enterprise Institute, 2003

Page 366: ASQ Six Sigma

Lean manufactuirng is aimed at the elimination of waste in

every area of production including customer relations,

product design, supplier networks and factory management.

The goal of Lean Manufacturing is to incorporate less

human effort, less inventory, less time to develop products,

and less space to become highly responsive to customer

demand, while at the same time producing top quality

products in the most efficient and economical manner.

Definition

Page 367: ASQ Six Sigma

• The term “lean” is used because leanuses “less”…

Labor SpaceCapital investmentMaterialsTime between the customer order and the

product shipment

Why Call it “Lean”?

Page 368: ASQ Six Sigma

Definition of Lean

Lean has been defined in many different ways –

“A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection.”

Definition by the MEP Lean Network

Give the customers what they want, when they want it, and do not waste anything.

Page 369: ASQ Six Sigma

Definition of Value Added

Waste is any activity that does not add value to the final product for the customer.

• Value-added is an activity that transforms or shapes raw material or information to meet customer requirements.

• Non-value added is an activity that takes time, resources or space, but does not add to the value of the product or service itself.

• Non-value-adding, but necessary – does not add value to the product or service but is required (e.g., accounting, governmental regulations, etc.).

Page 370: ASQ Six Sigma

Waste

“Anything that adds Cost

to the product

without adding Value”

“Anything that adds Cost

to the product

without adding Value”

Page 371: ASQ Six Sigma

Toyota Way – the 14 Principles by Jeffrey K. Liker

1. Base management decisions on long-term philosophy, even at expense of short-term financial goals.

2. Create continuous process flow to bring problems to surface.

3. Use pull systems to avoid overproduction.

4. Level out workload (heijunka); work like a tortoise, not a hare.

5. Build culture of stopping to fix problems, to get quality right first time.

6. Standardized tasks are the foundation for continuous improvement and employee empowerment.

7. Use visual controls so no problems are hidden.

8. Use only reliable, thoroughly tested technology that serves people and processes.

Page 372: ASQ Six Sigma

372

Toyota Way - 14 Principles (cont.)

9. Grow leaders who thoroughly understand work, live

philosophy, and teach others.

10.Develop exceptional people and teams that follow company’s

philosophy.

11.Respect extended network of partners and suppliers by

challenging them and helping them improve.

12.Go and see to thoroughly understand situation (genchi

genbutsu).

13.Make decisions slowly by consensus, thoroughly considering

all options; implement decisions rapidly.

14.Become a learning organization through relentless reflection

(hansei) and continuous improvement (kaizen).

Page 373: ASQ Six Sigma

373

Liker Model

Philosophy

Problem Solving

Process

People and Partners

Challenge

GenchiGenbutsu

Respect and Teamwork

Kaizen

Toyota Terms

Page 374: ASQ Six Sigma

374

Liker Model - 4 Ps1. Philosophy

• Long-term thinking even at expense of short-term financial goals

2. Process • Eliminate waste by focusing on flow, pull, workload

balance, error reduction, standardization, visual controls, and jidoka or use of reliable, tested technology/automation with mistake proofing and human touch

3. People and Partners• Respect, develop, and challenge people

4. Problem Solving • Fix and prevent problems by continual learning, going to

place where problem occurs, getting hands dirty, and making good decisions based on fact

Page 375: ASQ Six Sigma

What Is Lean?

Lean is a methodology

• that allows organizations to drastically improve

bottom line

• by improving processes and monitoring everyday

business activities to reduce errors

• in ways that increase value and minimize work, non-

value-add tasks, and waste while increasing

customer satisfaction

- Based on idea that faster processes yield less waste,

less cost, less work in process, less complexity,

higher quality, and happier customers

Page 376: ASQ Six Sigma

Womack and Jones Model

1. Define value from customers’ perspective

2. Document value stream

3. Improve flow of value stream

4. Drive for pull versus push

5. Continuously improve

Page 377: ASQ Six Sigma

Lean Principles

• Create value for customer

• Understand:

– Who is customer – person or entity who is

recipient of product or service; one who places

value on output; catalyst/trigger in value chain• Another business

• Someone inside own business

• Specific individual, group, or team

• Consumers—ultimate customer

– What customer considers valuable

• Make value flow based on customer’s needs

Page 378: ASQ Six Sigma

Lean Principles (cont.)• Consider life cycle of information, materials,

processes, products, and services• Look for process problems that prevent people

from performing best work• Eliminate waste

– Non-value-add steps– WIP– Cost

• Standardize work• Do not become distracted by other stakeholders

Page 379: ASQ Six Sigma

Value-Add Quiz In which category should the following be

placed?Activity Value Add Type 1 Type 2

Attending weekly team coordination meeting

Filtering through daily e-mail list

Reporting status to upper management

Gaining multiple approvals on documents

Gaining management approval for routine actions

Expediting document through approval list

Writing formal policies and procedures

Writing brief work-method instructions

Gaining regulatory or agency approvals

Creating ISO 9000 documentationHunting for needed information to do your job

Building “best practices” database

Holding lessons learned meeting

Spending time on process improvements

Page 380: ASQ Six Sigma

Lean vs. Traditional

Lean• Simple and visual signals• Demand driven• Inventory as needed• Reduce non-value added• Small lot size• Minimal lead time• Quality built• Value stream managers

Traditional• Complex• Forecast driven• Excessive inventory• Speed up value-added work• Batch production• Long lead time• Inspected-in• Functional departments

Page 381: ASQ Six Sigma

Benefits of Lean Manufacturing

Helps in – • Cost reduction• Cycle time reduction• “Waste”

minimization• Elimination of non-

value-added activities

• Resulting in a more “lean,” competitive, agile, and market-responsive company

Real Results

0 50 100

Lead TimeReduction

ProductivityIncrease

WIPReduction

QualityImprovement

SpaceUtilization

Page 382: ASQ Six Sigma

Why the Emphasis on Lean Now?• Global economy

• Pressure from customers for price reduction

• Fast-paced technological changes (e.g. Internet auctions)

• Continued focus on quality, cost, delivery

• Higher and higher expectations of customers

• Quality standards, such as QS-9000 (or TS 16949), the new ISO 9000:2000

• Holding on to “Core Competencies,”outsourcing the rest

• Market-driven pricing: Customers expect better performance at lower prices year after year

Page 383: ASQ Six Sigma

Evolution of Lean Across Markets

• Proven global concept since 1980s• Transformed business processes across

many industries:– Automotive– Aerospace

• Other industries beginning to embrace Lean concepts with excellent results:

– Construction– Hospitals – Pharmaceutical Manufacturing – Service Organizations

Page 384: ASQ Six Sigma

Pricing Model

Old Way

Cost + Profit = Price

New Way

Price - Cost = Profit

CustomersDemandLowerPrices

If CostsStay theSame

ProfitsDecrease

CostsIncrease

IncreasePrice

MaintainProfits

Whatcan we

do?

Page 385: ASQ Six Sigma

Pricing Model

Old Way

Cost + Profit = Price

New Way

Price - Cost = Profit

CustomersDemandLowerPrices

CostsIncrease

IncreasePrice

MaintainProfits

ImplementLean

IncreasedProfits

Page 386: ASQ Six Sigma

Core Concepts of Lean

• Creativity before Capital• A solution that is not-so-perfect implemented

today, is better than a perfect solution that is late. “Just do it.”

• Inventory is not an asset, but a waste/cost.• Typically, 95% of lead-time is not value added.• Lean implementation using the Plan-Do-Check-

Act methodology• Continuous Improvement environment: both

incremental and breakthrough.• Lean is a never-ending philosophy.

Page 387: ASQ Six Sigma

Aluminum Can Example

Bauxite Cryolite Aluminum Cast Product

Rolled PlateSheetCans

• From aluminum ore to usable cans, it typically takes about 300 days

Guess what the total value-added time is?

3 hours

Page 388: ASQ Six Sigma

Video

• Introduction to Lean

Page 389: ASQ Six Sigma

7 Wastes of Lean

“OMIT What U DO”• Overproduction• Motion• Inventory• Transportation (Movement)• Waiting• Defects (Correction)• Over-processing• Underutilized People

COMMWIP

Page 390: ASQ Six Sigma

Overproduction

Making more-earlier-faster than the next process needs it

• Just in case logic• Unbalanced workload• Unleveled scheduling• False sense of efficiency

• Printing 20 copies of a report that only 3 people look at

• All-staff e-mails when it pertains to only a few

• Waiting to “batch” work

Page 391: ASQ Six Sigma

Motion

Any movement of people that does not add any value to the product or service

• Poor layout• Inefficient Workplace

Organization• Lack of Standardization,

inconsistent work methods

• People, Material and Machine Ineffectiveness

• Where is are copier, printer, files and coffee-maker located?

• How far does the paperwork travel?

Page 392: ASQ Six Sigma

Inventory

Any supply in excess of one-piece flow

• Just in case logic• Unbalanced

workload• Unleveled scheduling• Unreliable suppliers• Reward system• “Pack rat” mentality

• Printed forms or tags that become obsolete

• 8 weeks of paper located by the copier

• How many pens do you have in your desk drawer?

Page 393: ASQ Six Sigma

Transportation

Moving people, materials and information around the organization

• Poor layout• Inefficient “flow”• Carrying large

quantities

• Moving “banker’s boxes to a storage area

• Mail carts• Messenger services

Page 394: ASQ Six Sigma

Waiting

Waiting for… man, machine, materials, information etc.• Just in case logic• Unbalanced workload• Unleveled scheduling• Unplanned downtime• Needs not

understood

• Waiting for files or information

• Need a signature• Customer reply to a

voice-mail or e-mail• Someone is printing

50 copies of a 70 page report

• Starting a meeting

Page 395: ASQ Six Sigma

Defects

Information, products and service that need correction• Not using Jidoka or

Poka-yoke• Lack of Standardization,

inconsistent work methods

• Ineffective communication

• Little investment in training

• Have to fix paperwork that is not completely filled in or track down the right person to get the information

• An entry error causes the wrong actions like shipping too many, or too few to the wrong address, etc.

Page 396: ASQ Six Sigma

Over-processing

Effort that adds no value to the product orservice from the customer’s standpoint

• Just in case logic• Inconsistent work

methods• Ineffective

communication• Redundant approvals• Excessive information,

extra copies

• Multiple sign-offs or checks

Page 397: ASQ Six Sigma

Underutilized People

Not utilizing people’s experience, skills, knowledge, creativity

• Not utilizing Teams• Organization

structure• Poor hiring practices• Little investment in

training

• Lack of suggestions• “That’s not my job”

attitude• Waiting for lead from

management

Page 398: ASQ Six Sigma

Mura and Muri

• Mura (unevenness) – variation in operation,

wasted resources when quality, cost, or delivery

cannot be predicted

– Testing/inspection, Containment, Rework,

Returns, Overtime, Unscheduled travel

• Muri (overdoing) – unnecessary or unreasonable

overburdening of people, equipment, or systems

when demand exceeds capacity or tasks are not

designed properly including harmful, wasteful, or

unnecessary tasks

Page 399: ASQ Six Sigma

Building Blocks of Lean

Change Management

5SVisualLayout Standard Work

Batch Size ReductionPOUS

Autonomation

JIT

Quick Changeover

Pull System & KanbanCellular & FlowTPM

VSM

Continuous Improvement & Kaizen Blitz

Self InspectionPoka-yoke

Teams

Page 400: ASQ Six Sigma

Building Blocks of Lean

Change Management

5SVisualLayout Standard Work

Batch Size ReductionPOUS

Autonomation

JIT

Quick Changeover

Pull System & KanbanCellular & FlowTPM

VSM

Continuous Improvement & Kaizen Blitz

Self InspectionPoka-yoke

Teams

Page 401: ASQ Six Sigma

5 Words that begin with “S”

Japanese Translation Conversion *Other

Seiri Organization Sort Sorting

Seiton Neatness Set in order Simplifying access

Seison Cleaning Shine Sweeping

Seiketsu Standardization Standardize Standardize

Shitsuke Discipline Sustain Self-discipline

* There are several other conversions

Page 402: ASQ Six Sigma

1

Clear/Sort

By red tagging

2

Organize/Straighten

A place for

everything

3

Clean/Sweep

Housekeeping /

Inspection

4

Maintain/Standardize

Establish standards

5

Continuous Improvement

Sustain

Discipline

Waste

5 Steps to Workplace Organization

Page 403: ASQ Six Sigma

Workplace Scan

“Understand your Current State”

• Start with a workplace Scan

• Team Based

• Define the boundaries

• Complete a Diagnostic Checklist

• Draw a Spaghetti Diagram

• Take “Before” Photos

• Starts the 5S Program

Workplace Scan Display

ChecklistScore

AreaDetails

Spaghetti Diagram

AfterPhotos

BeforePhotos

Page 404: ASQ Six Sigma

Sort

“When in doubt, move it out”

• Move unneeded items out of the area

• Use the Red Tag Technique

• Use a Temporary Red Tag Holding Area

• Criteria for unneeded items

– “30-day Rule”

• Keep only what you need in the area

Name____ Date___

Item _____________

Reason _________

Page 405: ASQ Six Sigma

Set in Order

“A place for everything and

everything in its place.”

• Make it easy for anyone to find

– “30-second Rule”

• Make it obvious if an item is out of place

• Decide where to keep items, how many items to

keep, how and when to replenish items

• Make it Visual

Page 406: ASQ Six Sigma

Shine

“Clean and Inspect”

• Get items to a like-new condition

– “10 Second Rule”

• Must plan Shine – assignments & supplies

• Perform as a Team

• Prevent dirt, grime, or contamination

• Repair as needed

Page 407: ASQ Six Sigma

Standardize

“Create the rules and follow them”

• Determine how the first 3S conditions are

met

• Use “One-Point Lessons”

• Maintain and monitor the conditions

• Use Visual techniques

Page 408: ASQ Six Sigma

Sustain

“Make 5S a habit”

• 5S is not something additional, it is part of

everyone’s daily job

• Supports discipline

• Train

• Communicate

• Support from Management

• Reward and recognition

Page 409: ASQ Six Sigma

5S is Fundamental to Lean

• 5S is directly related to other Building

Blocks

– Teams

– Visual

– POUS

– Standard Work

– TPM

Page 410: ASQ Six Sigma

Point-Of-Use Storage

• Raw material and WIP are stored at

workstation where used, which reduces the

inventory that can be carried.

• Works best if vendor relationship permits

frequent, on-time, small shipments (JIT).

• Simplifies physical inventory tracking,

storage, and handling.

Page 411: ASQ Six Sigma

Carpenter Story

• Does the carpenter walk back to the toolbox every time a tool is needed?

• Which waste is this?

• What does the carpenter do?

Page 412: ASQ Six Sigma

Proximity

• Typically, up to 60% of time is spent on

finding/collecting items needed.

• Minimize non-value activities

• Store as close as possible and within reach

• Layout and workstation design should

accommodate required materials

• Try to use the packaging from the supplier

or have the supplier change packaging

Page 413: ASQ Six Sigma

POUS Components

• Have the:

– Information

– Parts & materials

– Tools & equipment

that you need to perform you tasks within reach

Page 414: ASQ Six Sigma

POUS Workplace Zones

• Items used most often (i.e., daily) should be kept within reach

• Items used less often (i.e., weekly) should be kept close-by

• Items used rarely (i.e., monthly) should be kept in the vicinity

Daily

Weekly

Monthly

Page 415: ASQ Six Sigma

Location of items

• Use horizontal

transfers and

gravity feeds when

possible

• Support heavy

objects

• Set items

ergonomically

• Must be

comfortable for a

day’s work

Page 416: ASQ Six Sigma

Benefits

• Supports 5S & Visual and other Building

Blocks

• Simplifies inventory tracking and accuracy

• Reduces waiting, inventory, motion and

transportation waste

Page 417: ASQ Six Sigma

Benefits of 5S

• Improved equipment reliability• Superior quality• Increased productivity• Better workflow• Enhanced Safety• Reduced inventory• More pleasant place to work• Impress customers

Page 418: ASQ Six Sigma

Video

• Introduction to 5S

Page 419: ASQ Six Sigma

Building Blocks of Lean

Change Management

5SVisualLayout Standard Work

Batch Size ReductionPOUS

Autonomation

JIT

Quick Changeover

Pull System & KanbanCellular & FlowTPM

VSM

Continuous Improvement & Kaizen Blitz

Self InspectionPoka-yoke

Teams

Page 420: ASQ Six Sigma

Visual

Signs, lines, labels and color coding

Page 421: ASQ Six Sigma

Why Visual?

• What you need to know

• Cockpit view

• Information sharing

How do you know where to park when you

drive to a shopping mall?

Does someone have to tell you where to

park?

Page 422: ASQ Six Sigma

How to Apply Visual

• Use Signs, Lines, Labels and Color-coding

• Charts, pictures, lights, scoreboards

• Kanban, Andon lights

• Inventory Levels

Examples

• Productivity Goals

• Quality Goals

• Delivery schedules

• Set-up specification

• Safety Initiatives

• Attendance Goals

• Team Objectives

Page 423: ASQ Six Sigma

More Examples of Visual

• Signs

• Charts

• Goals

• Pictures

• Color coding

• Lights

• Scoreboards

• VSM Current & Future

State

• Standard Work

instructions

• Tags• Forms• Training hours• Employees’ suggestions• Cross trained skills• Employee awards• Absenteeism• Critical maintenance points• Customer satisfaction goals• Performance targets

Page 424: ASQ Six Sigma

Visual Controls as Communication Tools• Visual controls expose waste so we can

reduce or eliminate it• Visual controls help in:

– Improving motivation & morale– Focus on safety– Pride of workplace & workmanship

• Visuals and performance metrics– What gets measured, gets done– Policies drive behaviors

Page 425: ASQ Six Sigma

World Class Visual Controls

• Anyone knows what’s going on by looking

around

• You do not have to wait for information to

do your job

• Everyone passes the 30 second test

Page 426: ASQ Six Sigma

Visual Examples

Andon Lights

Shadow Boards

Display Panels

Range MarkingsOn Gauges

Page 427: ASQ Six Sigma

Standard Work

Reduce task variability

Page 428: ASQ Six Sigma

Standard Work

Best sequence of operations, using the most

productive combination of resources:

• Man, machine, materials, changeovers,

etc.

• Details any special skill/knack needed

• Safety, ergonomics are integrated

• Tool for perfect quality and efficiency

Page 429: ASQ Six Sigma

Standard Work Properties

• Specific

• Measurable

• Repeatable

• Documented

Page 430: ASQ Six Sigma

Standard Work

Identifies value added versus non-value added activities

• Reduce or eliminate non-value added activities• Convert Internal Time to External Time,

wherever possible• Continuous Improvement: once Standard Work

is established as a base and displayed at workstations, operators monitor and implement improvements

• Use as a training tool for new employees• Created by input from the people who actually

work in the process

Page 431: ASQ Six Sigma

Philosophy of Standard Work

Be specific about:

• Content• Sequence• Timing• Outcome

Example: Installing a Car Seat

• Bolts are installed and tightened in the same exact order

• The time required to tighten bolts is stated and followed

• Specified torque is applied and checked

Used as the basis from where the next level of improvement is made.

Page 432: ASQ Six Sigma

Types of Standardized Work Forms

• Process Capacity Table

• Work Combination Sheet

• Standard Work Sheet

• Others forms may be used based on your

organization’s needs

Page 433: ASQ Six Sigma

Process Capacity TableTimes for:• Elapsed time• Element time• Internal Time• External Time• Manual Time

Step Identification• Transportation• Process• Inspection• Storage

Use to identify bottlenecks Use to calculate the capacity of machines, and identify bottlenecks

Process:Seq No. Element Symbol

Elapsed Time

Element Time

Internal Time

External Time

1 Review work order f or die number and material 600 600 300

2 Locate the die 1800 1200 300

3 Locate material 3000 1200 300

4 Get tools 3600 600 300

5 Tagout machine 4500 900 60

6 Loosen bolts 4980 480 60

7 Disconnect hoses 5280 300 60

8 Remove die f rom press 5580 300 120

9 Return die to Tool Room 6180 600 300

10 Load die into press 6480 300 90

11 Align die 6960 480 0 X

12 Tighten bolts 7440 480 60

13 Connect hoses 7740 300 60

14 Position material 8340 600 300

15 Clear tagout 8940 600 60

16 Make sample piece 9000 60 60

17 Take fi rst piece sample to QC 9600 600 120

18 Adjust die and press 10800 1200 0 X

19 Make sample piece 10860 60 0 X

20 Return tools 11460 600 600

750 2400

Changeover Analisys Chart

Date: Name: Shift:

NV

A =

X

Comments

Convert to External

Convert to External

Convert to External

Convert to External

Prepare Tags before

Use quick connects

Use quick connects

Position die cart

Convert to External

Use positive stops

Eliminate

Use quick connects

Use quick connects

Convert to External

Have QC Tech ready

Pre-adjust die

Transport Process Inspection Storage Total Time Page ____ of _____11460

Eliminate

Convert to External

Page 434: ASQ Six Sigma

Work Combination Sheet

Sequence of:• Manual work time• Machine

operations time• Walking

Shows the interactions between machines and operators

Allows to recalculate operator work content as takt time changes

B - Generators 24,600 Date:

Assembly Cell #23 200 Name:

Final Assembly 123 VS Mgr:

IDManual

OperationMachine

Operation Walking Start Manual OperationMachine OperationWalking1 12 32 0 44 0 0 12 32 02 3 0 2 5 44 49 3 0 23 1 16 2 19 49 68 1 16 24 45 120 0 165 68 233 45 120 05 2 15 3 20 233 253 2 15 36 23 41 2 66 253 319 23 41 27 42 0 0 42 319 361 42 0 08 35 0 0 35 361 396 35 0 09 5 0 4 9 396 405 5 0 4

10 0 0 0 0 405 405 0 0 011 0 0 0 0 405 405 0 0 012 0 0 0 0 405 405 0 0 013 0 0 0 0 405 405 0 0 014 0 0 0 0 405 405 0 0 015 0 0 0 0 405 405 0 0 016 0 0 0 0 405 405 0 0 017 0 0 0 0 405 405 0 0 018 0 0 0 0 405 405 0 0 019 0 0 0 0 405 405 0 0 020 0 0 0 0 405 405 0 0 021 0 0 0 0 405 405 0 0 022 0 0 0 0 405 405 0 0 023 0 0 0 0 405 405 0 0 024 0 0 0 0 405 405 0 0 025 0 0 0 0 405 405 0 0 026 0 0 0 0 405 405 0 0 027 0 0 0 0 405 405 0 0 028 0 0 0 0 405 405 0 0 029 0 0 0 0 405 405 0 0 030 0 0 0 0 405 405 0 0 0

168 224 13

41% 55% 3%

405

405Time PCS Rate

1 Work Flow Diagram2345

Throughput per shift = Available Time / Total Operating Time: Total Time (Cyclical + Non-cyclical):

seconds

pieces

seconds per piece I.C. Flow

Total Non-cyclic Time:

Time Available:

Demand:

Takt Time:

Non-cyclical Work Elements Seconds

Total Time:

Percent Operator Time:

Total Cyclic Time:

Load on cart

Start WC-1, go to WC-2Unload part, Load Part, Start Machine, go to WC-3Unload part, f ile corner, inspect to printLoad next part, start machine, go to WC-1Fasten parts A-1, and B-1 together, go to AS-2Fasten Housing and BasePackage generator

Description of Work ElementManually load WC-1

Product Family:

Process:

Description:

Cyclical Work Element Element Time Graph Data

January 31, 200X

Eileen N. Terprise

0 100 200 300 400 500

123456789

101112131415161718192021222324252627282930

Operation Times

WC-1 WC-2 WC-3

AS-1AS-1AS-1

Page 435: ASQ Six Sigma

Standard Work Sheet

Sequence of processing steps• Worker• Machine• Tools• Layout• Material location(Standard stock)

Displayed at Workstations

Continuously reviewed and updated

Standard Work Sheet

Product Family

B - Generators

Process

Assembly Cell #23

Description

Final Assembly

Supplier

Fab, Assm #17, SM-29

Customer

SM-FG48, Shipping

WC-1 WC-2

WC

-3

AS-1

FS-1

AS-2

3 2

1

2

12

3

1

Page 436: ASQ Six Sigma

Uses

• The Process Capacity Table can be used

to reduce changeover times

• The Work Combination Sheet can be

used for line balancing when creating a cell

• The Standard Work Sheet can be used for

training and team development

Page 437: ASQ Six Sigma

Standard Work Examples

Adobe Acrobat Document

Adobe Acrobat Document

Adobe Acrobat Document

Page 438: ASQ Six Sigma

Standard Work and Training

Questions to ask Operators about Standard Work• How do you do this work?• How do you know you are doing this work

correctly?• How do you know there are no defects?• What do you do if you have a problem?

If these questions cannot be answered satisfactorily, then either the Operator needs additional training or the Standard Work is unclear

Page 439: ASQ Six Sigma

Uses of Standard Work

• Consistent performance of tasks = better quality

• Track performance = actual versus standard for continuous improvement

• Easy to Train = reduced learning cycle time

Old Learning Curve

Time

Pro

duct

ivity

New Learning Curve

TimeP

rodu

ctiv

ity

Page 440: ASQ Six Sigma

Benefits of Standard Work

• Standard documentation for all shifts

• Reductions in injuries and strain

• Employee ownership of process

• More pleasant working conditions; higher

morale

• Better than traditional time and motion

studies

• Reduced variability

Page 441: ASQ Six Sigma

Poka-yoke

• Error proof (mistake proof) takes away the possibility of human error

• The term Poka-yoke was made popular by Shigeo Shingo

• Fail-safe devices• Low cost, highly reliable mechanisms • Detects abnormal situations before they occur,

or• Once they occur, will stop the equipment from

further production. The machine stoppage makes the problem visible.

Page 442: ASQ Six Sigma

Other Poka-yoke Examples

• USB ports on computers

• Re-typing passwords to verify

• Computer prompts before deleting file

• Bar codes & scanning

• ATM swipe card or beep

Page 443: ASQ Six Sigma

Benefits of Poka-yoke

• Gives immediate feedback for root cause

analysis & correction (and prevention for the

future).

• Failure Mode and Effect Analysis (FMEA) solution

can be Poka-yoke

• Some examples of Poka-yoke devices are:

sensors, counters, feelers, limit switches, electric

eyes, probes, automatic stops.

Page 444: ASQ Six Sigma

Building Blocks of Lean

Change Management

5SVisualLayout Standard Work

Batch Size ReductionPOUS

Autonomation

JIT

Quick Changeover

Pull System & KanbanCellular & FlowTPM

VSM

Continuous Improvement & Kaizen Blitz

Self InspectionPoka-yoke

Teams

Page 445: ASQ Six Sigma

Value Stream Mapping

See the Flow

Page 446: ASQ Six Sigma

Value Stream AnalysisValue stream analysis encompasses all activities company must do to design, order, produce, and deliver its products and services to customers – Flow of tasks, from request for service (trigger event)

to service complete, from receipt of materials or information from suppliers to delivery of finished product or service to customers

– From viewpoint of customer, service, or transaction– Flow of information that supports and directs both flow

of materials and transformation of raw materials or information into finished goods or services

FinanceHumanResources

OperationsPurchasing Sales

Value Stream

Value Stream

Page 447: ASQ Six Sigma

Purpose of Value Stream Map

• Has customers’ perspective and focuses on meeting customers’ wants and needs

• Starts with immediate customer and maps back to receiving inputs from suppliers and shows how fits into overall value stream

• Provides single view that is a complete, fact-based, and time-based representation of stream of activities

• Provides common language and view for analysis• Shows how information triggers and supports

activities• Shows time for activities and whether they add value

Page 448: ASQ Six Sigma

Elements of Value Stream Map• Process steps• Value-add classification for each step• Information flow such as orders, requirements, schedules,

messages, approvals, specifications, kanban signals, shipping information, standard procedures

• Box score of key operational metrics including cycle time, waiting time, working time, conveyance time, distance traveled, items per shift, items processed per hour,setup time, backlog/work-in-process, amount of inventory between last step and consumer, defects, cost information, resource availability and active time, process variations

• Lead time is amount of time for one item to flow completely through process, noted along bottom of flow

• Takt time showing customer demand rate, in upper right corner of flow

Page 449: ASQ Six Sigma

Value Stream Analysis Steps• Identify deliverable, value stream, and sponsor who has authority and

responsibility to allocate resources and make changes across organization

• Identify customer and value from customer’s perspective as well as regulatory, legal, and compliance requirements

• Draw visual representation of process current state, generally draw steps starting at consumer’s view working back through steps to sources of material and labor; flows from left to right with time, with steps in order of occurrence

• Add metrics and observations like Takt time/throughput, cycle times, defect rates, and inventory/work-in-process and information flows to identify magnitude and frequency of waste

• Use lean principles to reduce or eliminate waste and reduce cycle time

• Develop future state map, document steps of process that need to happen, and prioritize and implement action plans to achieve future state

Page 450: ASQ Six Sigma

Value Analysis Matrix Steps• Structure value analysis matrix• Number process steps on sub process map• Have column for each process step• Estimate time for each process step• Place check in category for each process step,

either value-add or one of non-value-add categories

• Total number of hours or number of checks for each row

• Report percentages of value-add and non-customer required

Page 451: ASQ Six Sigma

1Process Step

Time (Hours)

Value - Added

Non Customer Required

Internal Failure

External Failure

Control/Inspection

Delay

Prep/Set -Up

Move

Total

2 3 4 5 6 7 8 9 10 Total % Total

30%

100

52%52

6%6

100 100%10620101012 10 201 1

2 2%

30

100%

Ö Ö

Ö 10 10%

Ö

Ö ÖÖ

Ö Ö Ö

1Process Step

Time (Hours)

Value - Add

Non Customer Required

Internal Failure

External Failure

Control/Inspection

Delay

Prep/Set-Up

Move

Total

2 3 4 5 6 7 8 9 10 Total % Total

30%

100

52%52

6%6

100 100%10620101012 10 201 1

2 2%

30

100%

Ö Ö

Ö 10 10%

Ö

Ö ÖÖ

Ö Ö Ö

Value Analysis Matrix Example

Page 452: ASQ Six Sigma

RFQ Creation Value Stream Map

Gather

RequirementsAssign Buyer

C/T = 3 days

W/T = 4 hours

VA/T = ~ 0

Verify Customer

Requirements

C/T = 14 days

W/T = 2 days

VA/T = 1 days

Consult with Manu-facturing Engineer

C/T = 5 days

W/T = 2 days

VA/T = 4 hours

C/T = 14 days

W/T = 2 days

VA/T = 1 day

Customer Meetings

C/T = 14 days

W/T = 2 days

VA/T = 1 day

Create Preliminary

RFQ

C/T = 5 days

W/T = 2 days

VA/T = 1 day

Review and

Approval Cycle

C/T = 5 days

W/T = 1 day

VA/T = ~ 0

Create Final

RFQ

C/T = 5 days

W/T = 2 days

VA/T = 1 day

Review and

Approval Cycle

C/T = 5 days

W/T = 1 day

VA/T = ~0

Iterate

Revise

Triggering

Event

Release RFQ

C/T = 2 days

W/T = 1 day

VA/T = 2 hours

Continue

Revise

Continue

Measurable

Deliverable

As-Is Process Cycle Time*:

C/T = 58 daysW/T = ~14 daysVA/T = 5 days

C/T = Calendar Time

W/T = Work Time

VA/T = Value-Add Time

Assumes no revisions!

Page 453: ASQ Six Sigma

Wait for AvailableSales Person

Initial PhoneContact

C/T = 0W/T = 0VA/T = 0

C/T = 5 minutesW/T = 0VA/T = 0

Sales Pitch

C/T = 10 minutesW/T = 10 minutesVA/T = 10 minutes

Configure System

C/T = 30 minutesW/T = 30 minutesVA/T = 5 minutes

Fill Out Order Form

C/T = 10 minutesW/T = 10 minutesVA/T = 5 minutes

Promise to Ship

C/T = 5 minutesW/T = 5 minutesVA/T = 0

Pending Order “FIFO” Queue

C/T = 7 DaysW/T = 0VA/T = 0

Batch TogetherSimilar Systems

C/T = 6 DaysW/T = 1 DayVA/T = 0

Check Availabilityof Materials

C/T = 3 DaysW/T = 1 hourVA/T = 0

Issue Work Orderto Factory Floor

C/T = 1 DayW/T = 1 hourVA/T = 0

Mtl.Available

?

Yes

No

Change Ship Date

Time Customer is On Telephone

TriggeringEvent

MeasurableDeliverable

While customer is on telephone:

C/T = 60 min.W/T = 55 min.VA/T = 20 min.

From Contact to Order Launch:

C/T = 17 daysW/T = ~ 1 dayVA/T = 0

Sales Order Processing Value Stream Map C/T = Calendar Time

W/T = Work TimeVA/T = Value-Add Time

Page 454: ASQ Six Sigma

Customer buys salad with salmon

Grocer offers premade salads

Salad company makes salad and delivers to grocer

Salad company buys supplies

Processed salmon is shipped to fish

markets

Salmon is processed at

fishery

Fishers catch salmon

Mother nature makes salmon

Restaurant supply company distributes food

Farmers grow and harvest produce

Produce is package and shipped

Meat companies process animals

Farmers raise meat animals

Container company sells

containers

Manufacturers make

containers

Chemical producers make plastics from

petroleum

Oil refined for petroleum products

Buying a Salad Process Flow

Page 455: ASQ Six Sigma

Cycle Time Definition“One of the most noteworthy accomplishments in keeping the price of products low is the gradual shortening of the cycle time. The longer an article is in the process and the more it is moved about, the greater is its ultimate cost.”

Henry Ford, 1926

• Time that elapses from beginning to end of process• Ultimate objective or goal of Lean processes is to reduce cycle

time by eliminating waste

Work Errors, waiting, transportation, movement etc…..

Total Cycle Time

Page 456: ASQ Six Sigma

Benefits of VSM

• Helps you visualize more than the single

process level

• Links the material and information flows

• Provides a common language

• Provides a blueprint for implementation

• More useful than quantitative tools

• Ties together lean concepts and techniques

Page 457: ASQ Six Sigma

4 Steps for VSM

1. Determine the Product Family

2. Draw your Current State Map

3. Create the Future State Map

4. Develop your plan to get there

Page 458: ASQ Six Sigma

Current State Map

• Understanding how the floor currently operates– Material and Information flows– Draw using symbols– Start with the “door to door” flow– Have to walk the flow and get actuals

• No standard times• Draw by hand, with pencil and eraser

– Foundation for the future state

Page 459: ASQ Six Sigma

Current State Icons

Customers

Suppliers

Mon., Wed., Fri.

Shipment-Truck

Process Box

Painting

Data

BoxC/T=1 sec Cycle TimeC/O= 1 hr ChangeoverRel.= 98% ReliabilityFPY = 95% Quality

I Inventory

Push System

Operator

Go See

Page 460: ASQ Six Sigma

More Current State Icons

Train

Boat

Cell

Hardcopy

Electronic

Person

Plane

Page 461: ASQ Six Sigma

Fun Current State Icons

???

o

&@#$%!

Fax

Page 462: ASQ Six Sigma

Current State Map Setup

Tips• Use 11” x 17” paper, landscape• Use pencil and eraser• Draw by hand• Don’t waste time putting it on a computer just to

make it look nice (non-value added time)• Practice, practice, practiceSteps• Customer• Supplier• Process• Information flow• Calculate process time and lead-time

Page 463: ASQ Six Sigma

Current State Map Setup

Title Block

Process Time and Lead-time Area

Process Flow Area

Information Flow AreaCustomer

informationSupplier

information

Page 464: ASQ Six Sigma

Current State Map

Dewey, Cheatem & Howe

Daily

Phlye-Biknight

Weekly

Stamping Spot Weld Deburr Assemble

C/T=1 sec

C/O= 4 hrs

Rel.= 98%

C/T=39 sec

C/O= 11 min

Rel.= 99%

FPY = 90%

C/T=17 sec

C/O= 0 min

Rel.= 80%

FPY = 100%

C/T=48 sec

C/O= 5 min

Rel.= 100%

FPY = 98%

I I I I

=1 =1 =1 =2

Shared

2 Weeks 5,425 1,400 1,225

5,300 pcs/mo.265 pcs/day

Order Entry

MRPMonthly

Weekly

FPY = 95%

L/T= 2 days

P/T = 20 min

Prod Ctrl

MRP

WeeklySchedule

Daily

30/60/90Forecast

Weekly

1 sec 39 sec 17 sec 48 sec20.5 days 5 days 4.5 days10 days

20 min2 days

105 sec40 days

Page 465: ASQ Six Sigma

Future State Questions

1. What is the Takt Time?

2. Will we build to shipping or to a supermarket?

3. Where can we use continuous flow?

4. Where do we have to use supermarket pull system?

5. At what single point in the production chain do we trigger production?

6. How do we level the production mix at the pacemaker process?

7. What increment of work will we release and take away at the pacemaker process? (Leveling the volume)

8. What process improvements will be necessary? (e.g. uptime, changeover, training)

Page 466: ASQ Six Sigma

1. What is the Takt Time?

• Takt means drumbeat

• Ability to meet customers’ demand

• Formula

Takt Time = Time Available

Demand

Page 467: ASQ Six Sigma

Takt Time Calculation

Time available

Shift (8 hours) = 480 mins

Breaks (2 x10) - 20 mins

Lunch - 30 mins

Meetings - 5 mins

C/O - 5 mins

Total Time = 420 mins = 25,200 sec

Demand = 265 parts

Takt Time = 95 sec/part

Page 468: ASQ Six Sigma

Takt Time Calculation

• Takt Time = Demand Rate– Goal: Produce to demand with no excess

capacity• Takt Time = work time available number of

units sold• Assume 5 people work, sell 500

units/week:– Takt Time = (5 x 40 x 60) / 500 = 24 min/unit– Set cycle time to match personnel/operation– For three-step process, perfect is 8 min/step

Page 469: ASQ Six Sigma

Exercise

• Takt time calculation

Microsoft Office Word Document

Page 470: ASQ Six Sigma

Takt Time Calculation

• Old requirements: 847/day * 240 workdays/yr = 203,000/yr

• 10% growth = 223,600/yr• New requirements: 223,60/yr/240 workdays/yr =

931/day• Time available: 8.5 hrs/day - .5 hrs (lunch) - .33 hrs

(breaks) = 7.67 hrs/day• 3,600 secs/hr * 7.67 hrs/day = 27,612 seconds/day• 27,612 seconds/day divided by 931 units/day = 29.3

secs per unit • Cycle time (actually 116 secs/unit) divided by Takt

time (29.3 secs/unit) = 3.95 = 4 operators required

Page 471: ASQ Six Sigma

Quick Changeover

Changeovers in less than 10 minutes

Page 472: ASQ Six Sigma

Quick Changeover

• Factory definition – the time from the last

good piece of previous run to the next good

piece of new run

• Office definition – the time it takes to switch

from one task to a new task

– Typically, in the office the time savings is not as

significant as in manufacturing

Page 473: ASQ Six Sigma

2 Hour C/O – Large Batch Size

0

123

456

78

Mon Tue Wed Thu Fri

A B C D E

Page 474: ASQ Six Sigma

1 Hour C/O – Half Batch Size

0

123

456

78

Mon Tue Wed Thu Fri

A

B

C

D

E

A

B

C

D

E

Page 475: ASQ Six Sigma

10 Minute C/O – Small Batch Size

0

123

456

78

Mon Tue Wed Thu Fri

A

B

C

D

E

A

B

C

D

E

A

B

C

D

E

A

B

C

D

E

A

B

C

D

E

Page 476: ASQ Six Sigma

10 Minute C/O – Many Different Small Batches

0

123

456

78

Mon Tue Wed Thu Fri

A

B

C

D

E

F

B

CD

G

A

F

B

A

H

C

B

E

I

G

H

D

B

Page 477: ASQ Six Sigma

Changeover Summary

C/0 Time Number of Changeovers

Number of Production

Runs

Production Time

Available

2 Hour 5 5 30 hours

1 Hour 10 10 30 hours

30 Minute 15 15 32.5 hours

10 Minute 25 25 35.8 hours

Based on 40 hours per week

Page 478: ASQ Six Sigma

SMED

• Single Minute Exchange of Dies (SMED)

• Shigeo Shingo (1970)

1. Separate internal steps and external

steps

2. Convert internal steps to external where

ever possible

3. Streamline all steps

Page 479: ASQ Six Sigma

4 Categories of SMED time

1. Preparation, after-process adjustments, checking of material and tools (30%)

2. Mounting, removing tools and parts (5%)

3. Measurements, settings and calibrations (15%)

4. Trial runs and adjustments (50%)

30% 5%

15%

50%

Typical proportions

Page 480: ASQ Six Sigma

Step 1. Separate Internal and External Times

• Checklists

• Functional checks

• Transportation of parts and tools

Page 481: ASQ Six Sigma

Step 2. Convert Internal Time to External Time

• Preparation conditions– Pre-heat, correct air pressure, stage materials

• Standardize– Centering, gripping, securing, replace fewest

parts, standardize heights, standardize bolts or

fasteners

• Intermediary jigs– Mounting plates

Page 482: ASQ Six Sigma

Step 3. Streamline

• Parallel operations

– More than one person working at the same

time

• Eliminate adjustments

– Markings

– Scales

• Functional clamps

• Mechanization

Page 483: ASQ Six Sigma

Changeover Cart Example

Before• Waste of time to find

correct tools• Tools can become

damaged• Waste of money for extra

tools

After• Saves time• Do not have to replace

tools as often• Have what you need

where its needed

Page 484: ASQ Six Sigma

QCO and Other Building Blocks

• 5S, Visual, POUS, Teams and Standard

Work

• VSM can discover opportunities for QCO

• As Batch Size Reduction continues, QCO

becomes more important

• Kaizen Blitz is a great method to implement

QCO

• Must sustain the gains

Page 485: ASQ Six Sigma

Benefits of Quick Changeover

• Shorter lead time

• Less material waste

• Fewer defects

• Less inventory

• Lower space requirements

• Higher productivity

• Greater flexibility

• Better Teamwork

Page 486: ASQ Six Sigma

Building Blocks of Lean

Change Management

5SVisualLayout Standard Work

Batch Size ReductionPOUS

Autonomation

JIT

Quick Changeover

Pull System & KanbanCellular & FlowTPM

VSM

Continuous Improvement & Kaizen Blitz

Self InspectionPoka-yoke

Teams

Page 487: ASQ Six Sigma

Continuous Improvement

Kaizen vs. Kaizen Blitz, or Incremental vs. Breakthrough Improvements

Kaizen Incremental Improvements:• Are continuous, since there is always room for

improvement in any process• It is never-ending• Many small improvements throughout the enterprise• Done by individuals or small teams• Could be functional, departmental, or task-oriented• Part of the “useful many”• A little time spent on an ongoing basis• Standardization of processes

(i.e., process improvement oriented)• Plan-Do-Check-Act methodology

Page 488: ASQ Six Sigma

Continuous Improvement

Ideas for continuous improvement could come from:– Employee suggestions– Corrective & Preventive actions– Non-conformities, defects– Customer complaints, returns– Benchmarks– The Lean “wastes”– Variations from the standard– Assessments, audits & competitive analyses– Research & Development activities

Page 489: ASQ Six Sigma

Continuous Improvement & Continuous Learning

• Continuous Learning goes hand in hand with continuous improvement

• Management should have training given to employees in Lean and Quality tools, problem solving and root cause analysis, the process model, concepts of Theory of Constraints, basic statistical techniques, graphical tools, etc.

• Understanding of Plan-Do-Check-Act and Standardize-Do-Check-Act (SDCA) will be beneficial

Page 490: ASQ Six Sigma

Continuous Improvement & Continuous Learning

• Continuous improvement and learning:– Becomes part of daily work life– Is practiced at both personal, functional and

organizational levels– Is result oriented– Is shared within the enterprise– Becomes part of institutional memory and

knowledge, even after employees retire, move up/laterally or leave

Page 491: ASQ Six Sigma

Why C. I.?• Standing still is not an option:

– Competitors will overtake us– Globalized economy– Higher customer expectations– Technical and breakthrough changes– Tapping into human potential and creativity

• Improvements based on:– Cost and cycle time reduction– “Waste” minimization– Defect prevention– Enhancing customer satisfaction/delight– Attaining competitive advantage

Page 492: ASQ Six Sigma

Kaizen Blitz

• Breakthrough strategies for lasting results

Page 493: ASQ Six Sigma

Building Blocks of Lean

Change Management

5SVisualLayout Standard Work

Batch Size ReductionPOUS

Autonomation

JIT

Quick Changeover

Pull System & KanbanCellular & FlowTPM

VSM

Continuous Improvement & Kaizen Blitz

Self InspectionPoka-yoke

Teams

Page 494: ASQ Six Sigma

Kaizen Blitz

• Kaizen Blitz is a combination of the Japanese word Kaizen for “continuous improvement” and the German word Blitz for “lightning.” It is a focused, week-long workshop where a cross-functional team reviews a process, identifies and eliminates waste, thereby achieving dramatic and tangible breakthrough (rather than incremental) improvement results.

• Kaizen Blitz now stands to mean the improvement activity itself.

• It is treated more as a “Project” (rather than a “Process”).

Page 495: ASQ Six Sigma

Why Kaizen Blitz?• Major benefits in a flash.• Can use benchmarking for setting goals.• Innovation has become indispensable in today’s

competitive world economy.• Cycle Time Reduction translates directly to cost

savings.• Kaizen Blitzes typically attack wasted time.• Positive impact on organizational culture through

“breakthrough” type improvements.

Page 496: ASQ Six Sigma

Who Will be Involved?

• Kaizen Blitz teams that come together for one week to implement improvements in a pre-selected bottleneck project or process.

• Cross-functional teams (seven to ten persons)• Hourly and salaried personnel• Operators, engineers, supervisors, maintenance persons,

managers, technical experts, material handlers, quality personnel, business support personnel, participants from the outside

• Typically, the Team Leader is person with clout and is the highest stakeholder in the process who possess leadership skills, open minds, strong desire to succeed and some prior Lean experience.

Page 497: ASQ Six Sigma

Kaizen and Cycle Time Reduction

• Focus on Process.

• Focus on Elimination of Waste.

• Focus on Speed.

• Time improvement translates directly to cost savings and customer satisfaction.

Page 498: ASQ Six Sigma

Kaizen Blitz Steps

1. Select specific area for improvement.

2. Define current situation in measurable terms

3. Set aggressive goals (stretch goals).

4. Identify team members.

5. Conduct training on the first day of the project.

6. Do it (in three to five days).

Page 499: ASQ Six Sigma

Step 1 – Select Project

• Value Stream Map• Bottlenecks• Customer or quality related issues• Interdepartmental• Long lead-times or setup times• Competitive advantage• Cost reduction or avoidance

Page 500: ASQ Six Sigma

Step 2 – Define Current State

• Video tape• Time study• Flowchart• Historical information• Observations and interviews

Page 501: ASQ Six Sigma

Step 3 – Identify Team Members• Cross-functional teams (seven to ten persons)• Hourly and salaried personnel• Operators, engineers, supervisors, maintenance persons,

managers, technical experts, material handlers, quality personnel, business support personnel, participants from the outside

• Typically, Team Leader is person with clout and is the highest stakeholder in the process. Ideally, the team leader must possess leadership skills, open minds, strong desire to succeed and some prior “Lean” experience.

Page 502: ASQ Six Sigma

Step 4 – Set Aggressive Goals• Define the purpose or objective and set stretch

goals.• Goals should be clearly defined and quantifiable

(e.g., reduce machine set up time by 75%, increase throughput by 40%, reduce floor space by 30%).

• Emphasis should be on identifying and eliminating waste, and then standardizing at the improved level.

• Benchmark when possible

Page 503: ASQ Six Sigma

Step 5 – Conduct Training

• Select hands-on training that is compatible with the project

• Do training on the first morning• Provided by an internal or external expert

Page 504: ASQ Six Sigma

Step 6 – Do it!

• Perform in 3 to 5 days

Page 505: ASQ Six Sigma

Example 1 – Universal Joint QCO

Category Changeover Tool Change

Target savings 4.9 hours (75%) 14.8 hours (75%)

Actual savings 4.5 hours (69%) 13.8 hours (70%)

Target savings per day $291 $879

Actual savings per day $268 $820

Total savings $272,041 per year

Page 506: ASQ Six Sigma

Example 2 – Tube Mill SMED

• Changeover savings per year: $510,000• Reduced changeover time from 4 hours, 40

minutes to 2 hours, 11 minutes• Employees happier – bonuses based on

changeovers• Management happier – more changeovers,

more production, more cash in the door

Page 507: ASQ Six Sigma

How to Start and Sustain your Lean Journey

• A journey of one thousand miles, starts with a single step

Page 508: ASQ Six Sigma

8 Ways to Get Started

1. Baseline Assessment or Gap Analysis

2. Value Stream Map

3. Training in Lean

4. Basic Building Blocks

5. Kaizen Blitz

6. Pilot Projects

7. Change Management

8. OEE

Page 509: ASQ Six Sigma

1. Baseline Assessment

Baseline Assessment or Gap Analysis performed by experienced Lean experts

• Use – Interviews– Observations– Process mapping– Analysis of reliable data

• Create a “Gap Analysis” with focus on eliminating the Eight Wastes

• Generate an Action Plan for implementing Lean improvements

Page 510: ASQ Six Sigma

2. Value Stream Mapping

Value Stream Mapping• Assemble the cross functional team• Have a Value Stream Manager• Determine a Product Family• Create the Current State Map• Create the Future Stats Map• Develop the Plan to get there, tie-in with business

objectives• Review the Plan, stay on course• Your Future State then becomes your Current State• Expand to Multiple Value Streams

Page 511: ASQ Six Sigma

3. Training in Lean

Training in Lean

• “Massive” training in Lean

• Need to build a critical mass of trained

employees

• Perform the training just before

implementation

• Lean Champions should have advanced

skills in Lean

Page 512: ASQ Six Sigma

4. Basic Building Blocks

• Start with one of the Basic Building Blocks of Lean

Change Management

5SVisualLayout Standard Work

Batch Size ReductionPOUS

Autonomation

JIT

Quick Changeover

Pull System & KanbanCellular & FlowTPM

VSM

Continuous Improvement & Kaizen Blitz

Self InspectionPoka-yoke

Teams

Page 513: ASQ Six Sigma

Basic Building Blocks

Basic Building Blocks• Start with the implementation of the Basic

Building Blocks• Build up layer by layer until TPM, Cellular

Manufacturing and Pull/Kanban are established

• Then continuously improve using Kaizens, suggestion systems and periodic Value Stream Maps.

Page 514: ASQ Six Sigma

Example – Implementing 5S

• Plan– Identify 5S Champions

& Teams– Decide how to roll-out

to entire organization– Resources required

• Train– Train just before

Kaizen– Train-the-trainer

• Do• Improve & Repeat

1

7

1

5

5 6

8 98 88 8

44

9999

23

10

10

13

141411

12

5S Implementation Map

Page 515: ASQ Six Sigma

5. Kaizen Blitz

Select a Kaizen Blitz project• Perform in 3-5 days• Focus on speed and elimination of waste• Can perform on “low hanging fruit”• Generates quick victories and

improvements• Do not continue in an Ad-hoc approach,

use your Value Stream Map

Page 516: ASQ Six Sigma

6. Pilot Projects

Pilot Projects• Implement Lean Pilot Projects where bottlenecks

have been identified• Use cross-functional teams• PDCA methodology is best• Can use benchmarks and best practices for goal

setting• Communicate results• Migrate lessons learned to other areas

Page 517: ASQ Six Sigma

7. Change Management

Change Management

• Begin with cultural Change Management before

rolling out Lean

• Address the human side of Lean in your three to

five year Master Plan

• Use internal/external change agents

• Communicate the need for change: ultimately,

Lean has to become integrated into daily work life

• Open up channels for sharing ideas

Page 518: ASQ Six Sigma

8. OEE

Overall Equipment Effectiveness (OEE) analysis can identify where to start your Lean journey

• Pareto the time spent on: – Breakdowns– Setups– Tool changes– Idling time– Slower speed– Minor stoppages– Producing defects, rework– Start-up issues

• This exercise will self-identify the “biggest bang for the buck” and where to start

Page 519: ASQ Six Sigma

Plan

• You must have a plan

• Utilize a Steering Committee, Design

Teams and Lean Champions

• Tie the Lean Objectives with the Business

Objectives

• Commit resources (time, people, budgets)

Page 520: ASQ Six Sigma

Stages of Lean Implementation

Generally, organizations can use this model

for the stages of implementing Lean

• Takt– Establish takt time and meet it

• Flow– After meeting takt time, then create Flow

• Pull– Where you can’t Flow, Pull

Page 521: ASQ Six Sigma

How to Sustain Lean?

• Lean will not be sustainable without proper

training in Lean and satisfied employees

• Internalize into daily work

• Understand that it is a never-ending process or

philosophy: no turning back

• Create discipline/motivation/incentives

• Standardize so as not to slip back

Page 522: ASQ Six Sigma

How to Sustain Lean?

• Continued, visible management commitment

• Open communication channels

• Emphasize accountability

• Use Lean performance metrics

• Role of Lean champions

• Job rotation

Page 523: ASQ Six Sigma

How to Setup the Lean Team

• Steering Committee• Design Teams• Champions

Page 524: ASQ Six Sigma

ChampionsChampions

Champions

Lean SteeringCommittee

5S, Visual, POUSDesign Team Cellular

Design Team

Pull/KanbanDesign Team

HPTDesign Team

Design Team

Lean Team Roles & Responsibilities

Page 525: ASQ Six Sigma

Steering Committee

Roles & Responsibilities• Set the Lean policy• Provide resources – time, people,

budgets & remove barriers• Develop and share the Lean Vision• Develop the Communication Plan

and then deploy it• “Walk the talk” everyday and fully

support the Lean initiatives• Determine the Design Team make-

up and members• Review the work of the Design

Teams

Lean SteeringCommittee

• Members usually from top management, but can include “Value Adders”

Page 526: ASQ Six Sigma

Design Teams

Roles & Responsibilities• Deploy the Lean policy• Determine the resources

required

– Time, people, budgets, etc

• Determine the best way to implement the Lean Building Blocks in your organization

• Report to the Steering Committee on progress

• Support your Lean Champions

• Members usually from management or “Value Adders”

• Group like Building Blocks together

Design Team

Page 527: ASQ Six Sigma

Design Team Agenda

• Design Teams decide how Lean will be implemented at their facility

• Take into account:

– Organizational Culture

– Change management

– Resources– Current skills &

needed skills– Size and timing of

projects– Metrics & Goals

• Design Teams may change over time

– At first they oversee the implementation plan

– Then they support the sustaining efforts

– They may disband, be absorbed into another Design Team or morph into a new design Team

– Allows members to try different aspects of Lean

Page 528: ASQ Six Sigma

Champions

Lean Champions

Roles & Responsibilities• Deploy the Lean policy via

training, implementation and Kaizen Blitz

• Feedback information to the Design Team on progress

• Be given the time to support the Lean efforts

• Make presentations and communicate the results of the Lean projects

• Members usually from management or “Value Adders”

• Motivated to learn, lead and improve their organization

Page 529: ASQ Six Sigma

Champion’s Agenda

• Be ready to commit time to Lean projects

• Be willing to learn and continually improve

• Become a Lean content expert

• Have skills in training, public speaking,

project management and be a team player

WIIFM

• Gain new skills

• Valued by the organization

• Exciting, new assignments

• Learn other aspects of Lean

Page 530: ASQ Six Sigma

Multi-facility Deployment Example

OrganizationLean Steering

CommitteeSmall FacilityLean Steering

Committee

Large FacilityLean Steering

Committee

Design Team/Champions

DesignTeam

DesignTeam Design

Team

DesignTeam

Champions

Page 531: ASQ Six Sigma

Momentum

• Have to build a “critical mass” of employees trained in Lean and apply principles

• Build “buy-in” and get people onboard

• “Bandwagon” affect

Organizational Alignment

Page 532: ASQ Six Sigma

Dealing with Objections to Lean

• Put yourself in their shoes

• Help answer “WIIFM”

• Communicate, communicate, communicate

and then communicate some more!

• Create an “Elevator Speech”

Page 533: ASQ Six Sigma

Getting People on Board

Lean Paradise

Status QuoLand

! ?

Page 534: ASQ Six Sigma

Lean Enterprise vs.Lean Manufacturing

• Taking Lean beyond the shop floor

Page 535: ASQ Six Sigma

Lean Enterprise• Move from the shop floor to Enterprise-wide Lean

implementation• Many of the Building Blocks are essential for

efficient office functions – 5S, Visual, POUS, Standard Work, Layout, Self Inspection, Poka-yoke

• The goal is to reduce or eliminate the wastes to reduce lead times and to enhance responsiveness, competitiveness and customer satisfaction

Page 536: ASQ Six Sigma

Thank you!

www.asq.org