Six Sigma Yellow Belt
Dr. M. Kamran Zaman
Improve
Develop Process maps and High level plan
Evaluate the Pilot Solution
Analyze Measure Improve Control Define
Develop Potential
Solutions Pilot Solution Implement
Final Solution
Identify vital X’s
Develop Solutions
Regression analysis
Determine Improvement Impacts/Benefits
The most important phase is Improve phase,
because this phase focus on reducing the amount
of variation found in a process.
Improve
The sole purpose of the Improve phase is to
demonstrate, with fact and data, that your
solutions solve the problem. Your organization
will make changes in a process that will eliminate
the defects, waste, and unnecessary costs that are
linked to the customer need identified during the
Define phase.
Improve
Improve: Implement and Check
• Implement preferred solution.
• Verify effectiveness by checking current performance against original
baselines.
• Apply statistical comparative methods if necessary.
Before Pareto Chart After Pareto Chart
Solution Identification
This step may be broken into three steps
• Ideas generation
• Solution design
• Pilot solution
REFINE, EVALUATE AND SELECT
Focus And Select Vital Few Causes
Generate Ideas (“Inputs” For Solutions)
Synthesize Ideas (Build Potential Solutions)
Pilot (Select Best Solution)
F I L T E R
ANALYZE
IMPROVE
Develop Solution “Proposal”
BRAINSTORM
Generate And Select Solutions
Ideas Generation
• Vital X’s – prioritized.
• Tolerance – Based on the transfer function we know
how much variation we can allow for each of the X’s.
• Ideas Generation.
Solution Design
Selecting the best Idea
All the ideas and best practices should be than ranked based on
following factors in the same priority:
• Impact on Y
• Resource Requirement for implementation
Select ideas which would have maximum impact on Y and
minimum resource requirement
A solution could be:
• One solution
• Set of solution, addressing different X’s or supplementing each
other
Transfer Function
The goal of improve is to develop a solution using
the transfer function
Y = {X1, X2, X3…Xn}
The transfer function:
• Relates the vital X’s to the project Y
• Predicts the effect and direction of changes on Y
due to changes in X’s
• Helps in fitting a solution which maximizes the
effect on Y using all or few of the X’s
Regression Analysis
Regression analysis is a statistical forecasting
model that describes and evaluates the relationship
between a given variable, usually called the
dependent variable, and one or more other
variables, usually known as the independent
variables.
Regression analysis models are used to help us
predict the value of one variable compared to one
or more other variables whose values can be
predetermined.
A Test of all or part of a proposed solution on a
small scale in order to better understand its
effects and to learn about how to make the full-
scale Implementation more effective
What Is A Pilot?
Pilot Solution – Proof of concept
It is important to prove that a hypothetical solution actually delivers what is
expected. Helps surface challenges in full scale implementation
The objective of running a pilot is to:
• Analyze the effects of your solution on the process and plan for a
successful full scale implementation.
• Establish that the solution would achieve what is desired.
• It is the proof of concept and can help in getting buy in from project
champion for resource mobilization required for full scale implementation.
• To identify if there would be any challenges in full scale implementation of
solution
Why Pilot?
Improved Solution
Improved Implementation
Lower Risk of failure
Confirms expected results and relationships
Improves ability to better predict Cost Savings
Increased Opportunity for feedback
Get early version of a Solution - Quickly to a particular
segment
Implementation requires introducing change to the
people who will make it work.
Implementing a change in operations should always
include:
• Clear plan
• Change management details
• Change may also requires
• Written procedures
• Training
• New equipment, materials and supplies
• Changes in staffing
• Changes in responsibility for certain positions
Implementation
• Assure solution costs and timelines are acceptable to management
• Determine the complexity of each solution in terms of time and ease of completion
• Identify potential impact (change to the baseline) of each solution. Explain how each solution will address the root cause and impact real change in performance.
• Financial benefit = benefit of solution – cost to implement
• Assess the risks associated with each solution and the likelihood of occurrence
• Determine need to involve/notify customer concerning any product or process changes
• Make sure that proper validation occurs associated with the solution prior to across the board implementation
Evaluate Cost, Complexity, Impact,
Benefit and Risk for Each Solution
Investments Required
Direct Costs
Indirect Costs
Benefits
Quality Improvements
Cost Reductions
Cost Avoidance
Cost Benefit Analysis
Consider Solutions That Remove Process
Waste Seven muda:
1. Over production ahead of demand
2. Waiting for the next process step or information
3. Transporting materials unnecessarily
4. Over processing
5. Inventory that is more than bare minimum
6. Motion by employees that is unnecessarily
7. Producing non-conforming parts
For each area of waste, examine each process step to determine if waste
occurs in the operation and how to remove the waste from the
production system
Forms of Waste
• Waste – absorb resources but creates no value.
• First step towards waste reduction is waste
identification.
• Majority of six sigma projects focus on one or
more of these areas.
Correction
or defects are as obvious as they sound.
Examples are:
Incorrect data entry
Paying the wrong vendor
Misspelled words in
communications
Making bad product
Materials or labor
discarded during
production
Eliminate erors!! Waste of Correction includes the waste of handling
and fixing mistakes. This is common in both
manufacturing and transactional settings.
Overproduction Producing more than the next step needs or more than the customer
buys.
– It may be the worst form of waste because it contributes to all the
others.
Examples are:
Preparing extra reports
Reports not acted upon or even read
Multiple copies in data storage
Over-ordering materials
Duplication of effort/reports
Waste of Overproduction relates to the excessive
accumulation of work-in-process (WIP) or finished
goods inventory.
Over processing
is tasks, activities and materials that don’t add
value. – Can be caused by poor product or tool design as well as from not understanding
what the customer wants.
Examples are:
Sign-offs
Reports that contain more
information than the
customer wants or needs
Communications, reports,
emails, contracts, etc that
contain more than the
necessary points (briefer is
better)
Voice mails that are too
long
Waste of Over processing relates to over-processing
anything that may not be adding value in the eyes of
the customer.
Conveyance is the unnecessary movement of material and
goods. – Steps in a process should be located close to each other so movement is
minimized.
Examples are:
Extra steps in the process
Distance traveled
Moving paper from place
to place
Inventory
is the liability of materials that are bought, invested in
and not immediately sold or used.
Examples are:
Transactions not
processed
Over-ordering materials
Waste of Inventory is identical to overproduction except
that it refers to the waste of acquiring raw material before
the exact moment that it is needed.
Motion
is the unnecessary movement of people
and equipment. – This includes looking for things like documents or parts as well as
movement that is straining.
Examples are:
Extra steps
Extra data entry
Having to look for
something
Waste of Motion examines how people move to ensure
that value is added.
Waiting
is nonproductive time due to lack of material,
people, or equipment. – Can be due to slow or broken machines, material not arriving on time, etc.
Examples are:
Processing once each
month instead of as the
work comes in
Showing up on time for a
meeting that starts late
Delayed work due to lack
of communication from
another internal group
Waste of Waiting is the cost of an idle resource.
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5S – The Basics
5S is a process designed to organize the workplace, keep it neat and clean, maintain standardized conditions and instill the discipline required to enable each individual to achieve and maintain a world class work environment.
• Seiri - Put things in order
• Seiton - Proper Arrangement
• Seiso – Clean
• Seiketsu – Purity
• Shitsuke - Commitment
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English Translation There have been many attempts to force five English “S” words to maintain the original
intent of 5S from Japanese. Listed below are typical English words used to translate:
1.) Sort (Seiri)
2.) Straighten or Systematically Arrange (Seiton)
3.) Shine or Spic and Span (Seiso)
4.) Standardize (Seiketsu)
5.) Sustain or Self-Discipline (Shitsuke)
5 S Sort
Identify necessary items and
remove unnecessary ones, use
time management.
Shine
Visual sweep of areas,
eliminate dirt, dust and
scrap. Make workplace
shine.
Place things in such a
way that they can be
easily reached whenever
they are needed.
Straighten
Make 5S strong in
habit. Make problems
appear and solve them.
Self-Discipline Standardize
Work to standards,
maintain standards, wear
safety equipment.
5 S
Benefits of the 5 S
Improve safety and communication
Reduce space requirements
Increase compliance with processes and procedures
Boost morale by creating a pleasant workplace
Reduce time wasted looking for tools and equipment
Some more sources of Waste
• Waste of untapped human potential.
• Waste of inappropriate systems
• Wasted energy and water
• Wasted materials
• Waste of customer time
• Waste of defecting customers
Kaizen
Kaizen is often translated in the West as ongoing,
continuous improvement. Some authors explain
Japan's competitive success in the world market
place as the result of the implementation of the
Kaizen concept in Japanese corporations. In
contrast to the usual emphasis on revolutionary,
innovative change on an occasional basis, Kaizen
looks for uninterrupted, ongoing incremental
change. In other words, there is always room for
improvement and continuously trying to become
better.
In practice, Kaizen can be implemented in corporations by improving every aspect of a business process in a step-by-step approach, while gradually developing employee skills through training and increased involvement. Principles in Kaizen implementation are:
1. Human resources are the most important company asset.
2. Processes must evolve by gradual improvement rather than radical changes.
3. Improvement must be based on statistical/quantitative evaluation of process performance.
In Improve , you can take corrective action to reduce or eliminate the
negative effects of the identified vital few factors.
This is where Managers, BBs and project teams get the positive
results of their careful investigation and quantification of Process
mapping.
Improve - Summary
Involve the Champion, Discuss with Management
Once the team has completed
their work it is now time to
review solutions with
Management. Allow the
team to benefit from a fresh
perspective and add
Management’s insight and
experience to the priorities.
This step improves the
alignment of Management to
the Teams efforts
Evaluate Improvements in Series
Implement one solution at a time. Allow for
sufficient time to determine effect, then move to
next solution.
(miss, no change) (hit, improvement)
Installed New Process Equipment
DPU
Retrained the Workforce on the Process
Control
Sustenance of Process improvement
Analyze Measure Improve Control Define
Determine Final
Process Capability
Implement
Process Control Project Closure
Validate Measurement system of X’s
Establish Final Process Capability
Project Sign-off and Documentation
Implemented Solution
Why Control?
Holding The Gain
Not Holding The Gain
Impro
vem
ent
Time
To make sure that our process stays in control after
the solution has been implemented
To quickly detect the out-of-control state and
determine the associated special causes so that
appropriate actions can be taken to correct the
problem before non-conformances are produced, or
to incorporate improvements based on the special
cause
Control - Objectives
How to Control?
• By keeping the X’s within tolerance by using
appropriate Control tools. (Mistake proofing, etc.).
• By applying Control charts to X’s to monitor and
Control the variation.
• By understanding implications on existing Quality
plans due to modification of current Control systems.
• By establishing Transition plan for maintaining
Control of improved Process.
Control
What is a Process Control system?
• A strategy for maintaining the improved Process performance over
time, and which identifies specific actions and tools required for
sustaining the Process improvements.
Why is Process Control system Important?
• It defines the actions, resources and responsibilities needed to
make sure the problem remains corrected and the benefits from the
solution continue to be realized
• It also provides the methods and tools needed to maintain the
Process improvement, independent of the current team
Define Sustaining Requirements
Now that the solution is known and you are ready to finish the project….
• Determine the activities that need to continue after the team is dissolved
• Define who is doing them now… who should be the long term owner?
• Determine who needs to do them in a sustaining long term mode
• Define the set of tasks or systems that must be installed prior to completing
the project and backing out of the work
• What else will be needed to make the solution effective and sustainable?
What Vacuum will be created when you leave?
Realize the Benefits of Improvement
How did you justify the cost savings for the project?
What changes will have to occur to create the savings?
Based on the impact of the benefits of the solution
have you made changes to the process to realize the
benefits?
Possible Actions:
Re-deploy personnel
Reorganize the floor
Reduce inventory levels in Planning System
Eliminate inspection or test operations
Modify Vendor/Customer contracts
Other cost saving changes to the operation
Close the Project
• The goals have been met and the team has been successful
• The solutions have all been implemented and demonstrated to be effective
• Assure all documentation is complete
• Determine what standardization opportunities are available
• Make sure the accomplishments of the individual or team are appropriately
recognized personally and publicly
• Measure and communicate results of the project (benefits and savings)
• Celebrate! We did it!
Control - Summary
In Control , you ‘sustain the gain’, focusing on maintaining the
improvements you’ve made to your Processes. It establishes the
roadmap for future productivity, for monitoring and ensuring that
your changes are consistent and permanent.
The DMAIC Team Based Problem Solving Process
uses a suite of tools, applied within a structured
framework to support the problem solving process
using teams.
Current Leadership Challenges
• Delighting Customers.
• Reducing Cycle Times.
• Keeping up with Technology Advances.
• Retaining People.
• Reducing Costs.
• Responding More Quickly.
• Structuring for Flexibility.
• Growing Overseas Markets.
Six Sigma— Benefits
• Generated sustained success
• Project selection tied to organizational strategy
– Customer focused
– Profits
• Project outcomes / benefits tied to financial reporting system.
• Recognition and reward system established to provide motivation.
Management Involvement
Executives and upper management drive the effort
through:
– Understanding Six Sigma
– Significant financial commitments
– Actively selecting projects tied to strategy
– Setting up formal review process
– Selecting Champions
– Determining strategic measures
Key issues for Leadership:
How will leadership organize to support Six Sigma ? (6 council, Director 6 , etc)
Transition rate to achieve 6 .
Level of resource commitment.
Centralized or decentralized approach.
Integration with current initiatives e.g. QMS
How will the progress be monitored?
Management Involvement
Critical Elements
• Genuine Focus on the Customer
• Data and Fact Driven Management
• Process Focus
• Proactive management
• Boundary-less Collaboration
• Drive for Perfection; Tolerance for failure
Types of Savings
Hard Savings:
Cost Reduction
Energy Saving
Raw Material saving
Reduced Rejection, Waste, Repair
Revenue Enhancement
Increased production
Yield Improvement
Quality Improvement
Hard Savings:
Cash flow improvement Reduced cash tied up in inventory
Reduced late receivables, early payables
Reduced cycle time
Cost and Capital avoidance Optimizing the current system / resources
Reduced maintenance costs
Types of Savings
Soft Savings:
Customer Satisfaction / Loyalty
Employee Satisfaction
Types of Savings
Cost of implementing
Direct Payroll
Full time (Black Belts, Master Black Belts)
Indirect Payroll
Time by executives, team members, data collection
Training and Consulting
Black Belt course, Overview for Movement etc.
Improvement Implementation Costs
Installing new solution, IT driven solutions etc.
What Qualifies as a Six Sigma
Project
Three basic qualifications:
-There is a gap between current and desired / needed performance.
The cause of problem is not clearly understood.
The solution is not pre-determined, nor is the optimal solution apparent.
For a breakthrough to occur… everything is
on the table
Way forward
Get Started
Even poor usage of these tools will get results
Learn more about Six Sigma
DMAIC - simplified
• Define
– What is important?
• Measure
– How are we doing?
• Analyze
– What is wrong?
• Improve
– Fix what’s wrong
• Control
– Ensure gains are maintained to
guarantee performance
Approach
Practical Problem
Statistical Problem
Statistical Solution
Practical Solution
DMAIC approach
D Define
M Measure
A Analyze
I Improve
C Control
Identify and state the practical problem
Validate the practical problem by collecting data
Convert the practical problem to a statistical one, define statistical goal and identify potential statistical solution
Confirm and test the statistical solution
Convert the statistical solution to a practical solution
Define
D Define
M Measure
A Analyze
I Improve
C Control
VoC - Who wants the project and why ?
The scope of project / improvement (SMART Objective)
Key team members / resources for the project
Critical milestones and stakeholder review
Budget allocation
Measure
Ensure measurement system reliability
Prepare data collection plan
Collect data
- Is tool used to measure the output variable flawed ?
- How many data points do you need to collect ?
- How many days do you need to collect data for ?
- What is the sampling strategy ?
- Who will collect data and how will data get stored ?
- What could the potential drivers of variation be ?
D Define
M Measure
A Analyze
I Improve
C Control
Analyze
How well or poorly processes are working compared with - Best possible (Benchmarking) - Competitor’s Shows you maximum possible result Don’t focus on symptoms, find the root cause
D Define
M Measure
A Analyze
I Improve
C Control
Improve
Present recommendations to process owner. Pilot run - Formulate Pilot run.
- Test improved process (run pilot).
- Analyze pilot and results.
Develop implementation plan. - Prepare final presentation.
- Present final recommendation to Management Team.
D Define
M Measure
A Analyze
I Improve
C Control
Control
Don’t be too hasty to declare victory.
How will you maintain to gains made?
- Change policy & procedures
- Change drawings
- Change planning
- Revise budget
- Training
D Define
M Measure
A Analyze
I Improve
C Control
Benchmark
Contract / Charter
Kano Model
Voice of the
Customer
SIPOC
Process Flow Map
CTQ
CTQ Tree
7 Basic Tools
Defect Metrics
Data Collection,
Forms, Plan,
Logistics
Sampling
Techniques
Cause & Effect
Diagrams
Statistical Inference
Control Charts
Capability ratios
Root Cause Analysis
5 Why’s
Cause and effect
Capability ratios
Process Map
Regression analyses
Correlation
5 S
Kaizen
Statistical Controls
Control Charts
Histogram
Sigma calculation
Non Statistical
Controls
Procedure
adherence
Performance
Management
Preventive activities
Poke yoke
Define What is wrong?
Measure Data & Process
capability
Analyze When and where
are the defects
Improve How to get
to six sigma
Control Display
key measures
Tools for DMAIC
Reality
• Six Sigma through the correct application of
statistical tools can reap a company enormous
rewards that will have a positive effect for
years
or
• Six Sigma can be a dismal failure if not used
correctly
The right support +
The right projects +
The right people +
The right tools +
The right plan =
The right results
Six Sigma is not a destination; it is a
continuous journey.
Now, please, start your journey.
Thank You
&
Allah Hafiz