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Six Sigma DMAIC Training (excerpts)


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Title: Six Sigma DMAIC Training (excerpts)

Six Sigma DMAIC Training (excerpts)
Presenter Bruce Berger (386) 852-9054
Six Sigma Overview
Why do we need Six Sigma?
Six Sigma is a proven methodology that will help
us improve our work in order to consistently
  • Our products and services meet (or exceed)
    customers needs
  • Our Processes are cost-effective
  • DBS employees are well-trained and motivated
  • State and federal statutory requirements are met

Six Sigma Overview
What is Six Sigma?
  • A philosophy for systematically improving
    quality, and therefore efficiency.
  • A standard of performance equal to 3.4 defects
    per million outputs (i.e. near perfection).
  • Most operations are about 2.8 sigma (100,000
    defects / million).
  • Very good operations are about 4 sigma (3,500
    defects / million).

Six Sigma Overview
Six Sigma is all about
1) Providing Customer Satisfaction through the
total involvement of ALL employees
2)Or put another way
Making Line Graphs move in the direction you
want them to go.
Line Graphs Help Us Understand Our Performance
We know were Successful when
Six Sigma Overview
Customer Satisfaction
  • Our customers tell us that they are
    pleased with our services.
  • Our Services are Delivered On-Time.
  • Our costs for doing business are the lowest
  • Our Employees are efficient.

Six Sigma Overview
Moving line graphs requires efforts in three (3)
Strategic planning helps us focus on key
projects to reach our Vision.
Process Management helps us maintain good results
as we perform our Mission.
Process Improvement using the DMAIC process helps
us fix work problems and improve our Performance.
To be successful as an organization, we must
learn how to effectively apply ALL three (3)
Todays training will overview the DMAIC process.

DMAIC Overview
Process Improvement utilizes a 5 step problem
solving DMAIC process
DMAIC 5 Steps
1) Define
2) Measure
3) Analyze
4) Improve
5) Control
DMAIC Overview Step 1 Define
The objective of step 1 is to Demonstrate the
importance of improvement needs in measurable
Lets look more closely at the two important tools
used in Define.
Step 1 Define - Spreadsheet Tool
  • MS Excel is used to construct unique spreadsheets
    to record data for analysis
  • Spreadsheets segment information into four key
  • Demographics (contain who, what, where or
    when--information about the process)
  • Milestone Dates (key completion dates/times of
    steps in the process)
  • Durations (Performance Results calculated from
    the milestone dates automatically)
  • Outcomes (Performance results of the process)
  • Data collection can be either manual or
    downloaded from existing systems
  • Can be used for ongoing monitoring of process
    performance after the project is completed

Step 1 Define - Line Graph Tool
  • Used to display performance trends
  • Relates performance to a target that is
    established by either customers or the business
  • Displays the Gap between the observed performance
    and the target

DMAIC Overview Step 2 Measure
The objective of step 2 is to Investigate the
features of the indicator, stratify the problem
and set a target for improvement.
Lets look more closely at two important tools
used in Step 2 Measure
Step 2 Measure Histogram Tool
  • MS Excel and QC Tools software used to construct
  • Fits data into a frequency distribution
  • Can show upper and lower specification limits and
    denote data that falls outside those limits (the
    area on which the story should focus)
  • Used for data breakdowns by hours, minutes,
    dollars, etc.

Step 2 Measure Pareto Tool
  • MS Excel and QC Tools software used to construct
  • Tool used to rank data by groups from the group
    that contains the most data points to the group
    that contains the fewest data points.
  • Look for a large bar or young mountain

Team Operations and Group Dynamics
The following are a few dynamics that all teams
need to be successful
  • P-A-L (Purpose Agenda Limit)
  • Parking Lot
  • Recognition
  • 4 Stages of Team Growth
  • Consensus and Brainstorming
  • Rules of Conduct

Why Are Effective Meetings Important?
Because organizations spend 7.15 of their
personnel budgets, 35 of middle management's
time, and 60 of top management's time in
What Is An Effective Meeting?
  • An effective meeting is a meeting
  • which is necessary.
  • which includes all individuals required to
    accomplish the intended PURPOSE?.
  • which covers the AGENDA.
  • where people know what is expected of them.

P-A-L (Cont.)
  • What Is An Effective Meeting? (Cont.)
  • An effective meeting is a meeting
  • where the real issues are on the table and being
    dealt with and where most hidden agendas are
    legitimized and surfaced for discussion.
  • where decisions and commitments are made, plans
    are developed, problems are solved.
  • where people leave knowing what was accomplished
    and what they are to do.
  • which meets its intended PURPOSE.
  • which respects people by starting and ending on
    time (LIMIT).

P-A-L (Cont.)
  • When Are Meetings Needed?
  • Meetings are useful
  • for group problem solving.
  • for sharing information or advice.
  • for building commitment to a common goal.
  • for addressing problems or issues that involve a
    number of people.
  • for planning.
  • for defining accountability and responsibility.
  • for group decision-making.

P-A-L (Cont.)
  • How Are They Created?
  • Send a draft of the agenda. The person calling
    the meeting should send out information on the
    agenda so that the purpose, time frames and
    topics are clear before people come to the
  • Start the meeting on time.
  • Revise and agree on an agenda. Add agenda items
    suggested by others attending the meeting, as
    appropriate. Finalize and agree on the agenda.
  • Agree on ground rules.

P-A-L (Cont.)
  • How Are They Created? (Cont.)
  • Encourage active participation from all members.
  • Choose a process facilitator. To ensure an
    effective meeting, someone needs to take
    responsibility for managing the process portion
    of the meeting.
  • Focus the discussion. Clarify and summarize as
    necessary to facilitate mutual understanding of
    perspectives and ideas.
  • Decide how to decide. Determine how decisions
    will be made in the meeting - by consensus, by
    multi-voting, by majority voting, or by the team

P-A-L (Cont.)
  • How Are They Created? (Cont.)
  • Address all items raised. Insure that all items
    raised are addressed by the end of the meeting
    and that the person who raised the item knows
    what the next step will be, specifically.
  • Check with the person who raised the issue to
    ensure they know what needs to happen next to get
    the issue addressed and that the proposed plan
    meets their needs.

Parking Lot
  • Parking Lot is a strategy for recording and
    postponing items raised during a meeting. Create
    a side list of items to be addressed later.
    Before the meeting adjourns, review ALL "parked"
    items and decide
  • whether this group will address the item or refer
    it elsewhere, and if the item will be addressed
    by the group, decide when and how it will be
    addressed - (e.g., agenda next meeting, assign).
  • communicate decisions to the person who raised
    the item.

Parking Lot (Cont.)
  • Summarize results, agreements, and next steps.
    Acknowledge agreements. At the close of the
    meeting review the decisions and agreements and
    other accomplishments that happened in the
    meeting, and review the next steps. WRITE IT ALL
    DOWN! Acknowledging and celebrating what was
    accomplished at a successful meeting gives people
    a sense of progress, and rewards them for the
    time and effort the meeting required. It also
    encourages them to work to make the next meeting
  • End the meeting on time.

The purpose of recognition is to formally
acknowledge the accomplishments of teams or team
related activities.
  • Two major forces help drive Quality Improvement.
    These are
  • Personal satisfaction from participation in the
    process and the knowledge that you can make
    constructive changes in your work environment,
    which help meet the needs of the customer.
  • External recognition, which honors those who
    contribute to quality improvement.

Recognition (Cont.)
Recognition is meant to be a "Win-Win" situation,
but it is often difficult to implement in a way
that everyone perceives it as such. Teams should
recognize that successful long-term recognition
is most applicable on a local level. Peer
recognition and recognition by your local
management have a more direct, lasting impact.
Team Growth
  • When small groups of people come together for the
    first time or when other events occur, these
    groups are said to be in transition and will
    undergo some predictable phases of team change or
    growth. A corresponding change in individual
    comfort levels brings tension and a sense of
    uneasiness to the whole team.
  • The net result is usually some form of undesired
    or dysfunctional team behaviors. An awareness of
    these stages of group development and their
    related behaviors is important, especially for
    people leading teams in transition. The
    transition can be triggered by numerous events,
  • A small group coming together for the first time
  • Changing team leaders on an existing team
  • Member turnover
  • An unexpected surprise visitor sits in with the

Team Growth (Cont.)
  • Stage I Form This is where the group comes
    together either for the first time or after being
    apart for long periods.
  • Stage II Storm This phase is characterized by
    intra-team conflict as members become more
    familiar and more comfortable with the team
    environment. They take more risks, and often
    begin to become competitive with each other.

Team Growth (Cont.)
  • Stage III Norm This phase is typified by the
    development of team cohesion. After all the
    conflict of phase II, the members begin to
    recognize and accept the team norms, their roles
    and the pecking order established in stage II.
    The personal "quirks" of other members also
    become accepted, or at least better tolerated and
    torn relationships get patched back up.
  • Stage IV Perform This is when the team really
    begins to operate smoothly like a well-oiled
    machine. Members now know one another well they
    freely depend on each other for support and can
    thus focus on solving the problem and objective
    decision-making instead of each other.

Team Growth (Cont.)
  • What Does This Mean To You?
  • Because the Form, Storm and Norm stages of group
    development result in less than optimum output,
    teams often try and push through these phases
    before their chemistry is ready to move on in
    order to improve team productivity.
  • This might seem like a good idea, but it is
    really dysfunctional.
  • It is natural for people to go through
    predictable phases of growth depending on
    maturity, experience, and other factors. It is
    natural for teams to do so too. They must go
    through these predictable phases as they mature
    and gain experience with each other and the DMAIC

Team Growth (Cont.)
  • What Does This Mean To You? (Cont.)
  • The duration of each phase depends on individual
    and team maturity, task complexity, leadership,
    and the sponsor's support.
  • While it is natural that teams go through these
    stages some teams can get stuck in different
    stages. Given that the stages are unavoidable, an
    idea to consider to help reduce the time needed
    for a "team in transition" to go through the
    stages and be fully productive, is to share
    expectations about the group and its preferences
    and direction.
  • Specifically, the team can establish (as part of
    their rules of team conduct) for example, there
    will be no "surprises". This can help establish
    an atmosphere of trust earlier in the
    evolutionary process allowing for some
    interpersonal issues to be put aside so people
    can focus on team objectives.

Team Growth (Cont.)
Consensus and Brainstorming
  • Consensus is a group decision-making process that
    takes each member's ideas and opinions into
    account and results in a decision that everyone
    in the group can support. It is an effective
    method for decision-making because it involves
    every member's participation. Consensus improves
    decision quality, equalizes power, causes
    examination of alternatives, increases commitment
    to implement the decision and promotes unity
    among the team members.
  • Brainstorming is a method used by a group of
    people to produce a large number of creative
    ideas in a relatively short period of time.

Consensus (Cont.)
  • How To Reach Consensus
  • The leader clearly lists the alternatives the
    group has to choose from and opens the topic for
  • Each member of the group shares her/his ideas
    opinions and known facts about what each feels
    the group's decision should be.
  • When the leader feels that the team is beginning
    to come to a common agreement, he/she will
    clarify the position and ask the team if there is
    a consensus. If everyone agrees that it is the
    best decision, or feels that it is a decision
    that they can support, they state their agreement
    and the leader confirms the decision. If a member
    has new information or clarification of previous
    information that may be helpful to the team, time
    is spent discussing the concern and the process
    continues until consensus is achieved.

Consensus (Cont.)
  • Key Guidelines For Decision Making By Consensus
  • Avoid arguing based on opinion. Strive to focus
    on facts and objectivity. Don't change your mind
    to avoid conflict. Change it based on facts and
    objectivity. Look at differences among the group
    as positive ways to make change. Coach each other
    to be honest, open and data based as much as
  • The following is an exercise to practice the
    decision-making technique of consensus in a group
    setting. Pay special attention to member
    involvement, as this will drive your success.

  • Brainstorming is an effective technique because
    of two main principles
  • Delayed Judgment - People are able to produce
    more ideas when they delay evaluation of ideas
    until a later time.
  • Extended Effort - More original and useful ideas
    are created when the group continues to generate
    ideas beyond the initial, more obvious responses
    by filling an agreed upon time limit or an agreed
    upon number of ideas. The emphasis in the
    Generation Phase of a brainstorming session is
    always on the "quantity" of ideas not the
    "quality." The quality will come later when
    ideas are clarified and evaluated.

Brainstorming (Cont.)
  • How To Brainstorm
  • The leader selects the method of brainstorming
    that will be used and informs the team. It will
    usually be one of two popular types
  • Structured or Round Robin
  • Unstructured Open Forum or Green Lighting
  • The leader clearly states the topic and purpose
    of the brainstorming session. Everyone agrees on
    the topic or issue. The topic is then written and
    placed in a prominent, visible position.
  • A recorder is selected to record all ideas on a
    flipchart or viewgraph transparency for all to
    see. Always having the words visible to everyone
    at the same time avoids misunderstandings and
    helps to inspire other new ideas.

Brainstorming (Cont.)
  • How To Brainstorm (Cont.)
  • The leader reviews the following "Rules for
    Brainstorming" with the group
  • No discussion, comments or evaluation of any idea
    during the generation phase.
  • All ideas will be recorded.
  • Quantity not quality is important during the
    generation phase.
  • State ideas briefly and clearly.
  • Build on recorded ideas.
  • Generation Phase- Begin the brainstorming session
    by posting ideas on the flip chart. Make sure all
    ideas remain visible to the team. Continue until
    the agreed upon time is used or the agreed upon
    number of ideas are generated.

Brainstorming (Cont.)
  • How To Brainstorm (Cont.)
  • Clarification Phase- During the Clarification
    Phase of Brainstorming, the team goes over the
    list to make sure that everyone understands all
    of the items. Do not discuss ideas. Criticism and
    discussion will take place during the Evaluation
    Phase and in Multi-voting.
  • Evaluation Phase- Finally, during the Evaluation
    Phase, the team reviews the list to eliminate
    duplications, irrelevancies and issues that are
    off limits or cannot possibly be addressed or
    acted upon by this team.

Rules of Conduct
  • Rules of Conduct
  • One practical way to reinforce the principle of
    Respect People is to establish and follow Rules
    of Conduct during meetings. Your team can either
    adopt the Rules of Conduct, shown below, or
    modify them to best suit your team's needs.

Rules of Conduct (Cont.)
  • With the ground rules established, the team can
    begin the continuous improvement cycle, P-D-C-A,
    but meetings must be effectively managed to
    ensure progress and success.

How to Construct Line Graph Outcome Indicators
  • Draw and label each axis. Label the horizontal
    axis with the frequency of measurement (i.e.,
    hour, day, week, month, etc., or by occurrence).
    Label the vertical axis with the indicator to be
    displayed. Construct appropriate measurement
    scales on each axis.
  • Title the line graph with full Indicator
    Description including Location and Time Period.

Construct Line Graph Outcome Indicators (Cont.)
  • Show indicator formula if the indicator results
    from a calculation.
  • Draw a good arrow and target. The target is
    displayed as a dashed line.
  • Fill in the source block and include source of
    the data, who collected the data and the time
    period that data was collected from the source.

Data Collection Spreadsheet
  • MS Excel is used to construct unique spreadsheets
    to record data for analysis
  • Spreadsheets segment information into four key
  • Demographics (contain who, what, where or
    when--information about the process)
  • Milestone Dates (key completion dates/times of
    steps in the process)
  • Durations (Performance Results calculated from
    the milestone dates automatically)
  • Outcomes (Performance results of the process)
  • Data collection can be either manual or
    downloaded from existing systems
  • Can be used for ongoing monitoring of process
    performance after the project is completed

The ParetoBackground
How the Pareto Diagram was Born
  • 1897 . . . Italian Economist, Vilfredo Pareto,
    presented a formula showing that the distribution
    of income is uneven (i.e., the largest share of
    the world's income is held by small number of
  • 1907 . . . U.S. Economist, M. C. Lorenz,
    expressed a similar theory in a diagram.
  • Later . . . Quality Control expert, Dr. J. M.
    Juran, applied Lorenz's diagram method to
    classify problems of quality into "vital

The ParetoBackground
What is a Pareto Diagram?
  • The Pareto is a graphical tool used to rank
    datasets within a data group. It helps us
    distinguish between the significant few and the
    trivial many datasets. It is primarily used to
    identify the most serious or most frequently
    occurring dataset(s) and is based on the concept
    that 80 of the data group problems (or, at least
    a large percentage) result from 20 of the
    datasets. Pareto diagrams are to be constructed
    for only discrete (or countable or attribute)

The ParetoConstruction
  • Draw a box.
  • Display the number of items in the upper left
    corner as shown below (n101).
  • Title the PARETO by describing the data that is
    being stratified. (Hint answer the Question,
    What is n?(i.e What are the 101?)
  • Label three (3) sides of the box as follows
  • Left side Number of __________ Construct a
    measurement scale on the left side starting with
    zero at the bottom and the n (e.g., 101) value
    at the top. Add additional appropriate scale
    values on the left side.
  • Bottom side Label with the name of the What,
    Where, When or Who data group to be displayed
    (e.g., County). Draw each bar at the appropriate
    height descending from the left starting with the
    biggest bar. Label each bar and display bar
    height values above each bar.
  • Right side Label this side Cumulative
    Percentage and display measurement grids at 0,
    25, 50, 75 and 100.
  • Construct a Cumulative Percentage line Line
    starts in lower left corner at zero and
    connects labeled data points plotted at or
    directly above the upper right corner of each bar
    and at a height equal to the cumulative
    percentage, calculated as follows (bar
    heights of all bars to left data point) (the
    total n) 100 (e.g., (7620) (101) 100
  • Add a source box.

The Pareto Example
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