TLC, SSEO 1.5 22002. Thomas A. Little, Ph.D. President

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Thomas A. Little, Ph.D. President, Thomas A.
Little Consulting
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Audience
Presentation is designed for those Executives and
Managers who are considering implementing Six
Sigma and want to understand its core concepts
and benefits. Provides an overview and
orientation of six sigma methodologies and
organizational requirements. The Executive
Overview is presented prior to six sigma
implementation, Champion and Black Belt training.

382 Stanwick Street Brentwood, CA
94513 1-925-285-1847 drlittle_at_dr-tom.com www.dr-to
m.com
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Objectives

• As a result of attending this course the
  participant will
• be able to
• Describe the Six Sigma Breakthrough strategy
• Understand the Champions role in the Six Sigma
  Initiative
• Relate the roles and responsibilities of the
  Champion, Black Belt, Green Belt and Team Members
  
• Identify projects with high probability for
  success
• Understand the DMAIC methodology and how it
  applies to improvement projects
• Establish and utilize dashboard metrics
• Assist in project management and project goal
  completion

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Presentation Outline
Section I Six Sigma Introduction Section
II Management and Organizational Infrastructure
for Six Sigma Section III DMAIC Breakthrough
Methodology Section IV Implementation Strategy
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Section I
Section I Six Sigma Introduction What is Six
Sigma? Three elements of Six Sigma DMAIC
roadmap Expected benefits of Six Sigma Corporate
results of Six Sigma
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Technical Definition of Six Sigma
Technical Definition (Motorola)
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LSL
USL
1.5
s
12.5
12.5
Cp2 Cpk1.5
Cp2 Cpk1.5


3.4 DPMO
3.4 DPMO
CpCpk 2
-
6s -5s -4s
-3
s -2s -1s 0 1s 2s
3s 4s 5s 6s
6s
6s
to LSL
to USL


Evolution to
A Management driven, scientific methodology for
product and process improvement which creates
breakthroughs in financial performance and
Customer satisfaction
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What is Six-Sigma?

• Management mandated and directed improvement
  program focused on breakthroughs in financial
  performance and customer satisfaction
• Uses Champions, Black Belts and Green Belts to
  facilitate change
• Focused on core business and Customer needs
• A systematic method for process and product
  improvement
• A Greek symbol for measuring performance
  variation
• A metric for evaluating performance quality
• A standard of excellence (3.4 defects per million
  opportunities)

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Customer Satisfaction Efficient Systems
Improved Profitability

• Two types of projects to improve financial
  performance
• Increase Revenue Grow the Business
• Improve Customer satisfaction, sales, capacity
  and market position
• Decrease the Cost of Goods Sold
• Reduce variation and defects
• Improve yields
• Understand root cause of issues and eliminate
  the source of problems
• Automate process workflow
• Improve process performance and reduce waste
  using lean principles

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Reduce Process Variation Defect Rates
Off-Target
Too Much Variation
Centered On-Target
Center Process
Reduce Spread
The objective is to understand customer
requirements and reduce process variation and
defects
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Breakthrough and Continuous Improvement
Breakthrough Strategy
1
2
3
4
5
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Three Emphasis Areas for Six Sigma
Focused on product design excellence, design for
manufacturability, Customer satisfaction and cost
reduction within all components of the
development and new product introduction process.
Focused on operational excellence, Customer
satisfaction and cost reduction within all
components of the operation. Areas of focus
include Sales, HR, Finance, Materials,
etc. Focused on product production excellence,
variation and defect reduction, lean production
techniques, Customer satisfaction and cost
reduction within all components of the production
and delivery process.
Six Sigma touches on all aspects of the Business
Enterprise
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Past Improvement Activity Failure Modes
Unsuccessful Projects No clear Management mandate
No roadmap for the project
not sure where we are going No dedicated
resources No Management and performance review No
ability to measure performance and examine
effectiveness not sure if we accomplished
anything No financial ROI during project
definition and measurement at completion No clear
answer as to why are we doing this project?
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What Makes Six Sigma Work?

• Select and work on the most important problems
  and projects to the business and Customer
• Assure those projects impact customer
  satisfaction and financial performance
• Allocate the time to get the work done
• Have your best people work on them
• Provide those individuals with all the training,
  tools, and resources they need to make the
  performance breakthrough
• Provide Management direction, support and routine
  review of performance
• Require a well thought out, objective and data
  driven solution
• Verify the dollar savings of your efforts
• Sustain the benefits of the solution over time

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Six Sigma 3 Critical Elements
Defining and using business objectives and
metrics that focus our attention on performance
and defects that are most important to the
customer and have the greatest potential for
impacting the bottom line
Dedicated resources and focused infrastructure,
trained in the use of the 6 Sigma problem solving
and process improvement methodology
Systematic Approach to improving performance and
reducing defects which are important to the
customer (qualitative statistical)
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Strategic Business and Quality Metrics
CSI, Sales, delivery times, cost per unit, Yield,
DPU, DPMO, customer response times, Web hit
rates, Rework/scrap rates, etc.
(Critical Business Elements)
Management objectives and dashboard forms the
core of the strategic Business Quality Metrics
and is flowed down to other departments and
process areas to provide leading and lagging
indicators of performance
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Hierarchy of Operational Dashboards
Can we see measurable progress in our key
business critical metrics?
Executive Dashboard
Level 1 Processes
Director Level
Level 2 Processes
Manager Level
Level 3 Processes
Engineering Level
Level 4 Processes
Operator Level
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Six Sigma DMAIC Road Map
Define Identify Project, Champion and Project
Owner Determine Customer Requirements and
CTQs Define Problem, Objective, Goals and
Benefits Define Stakeholder/Resource
Analysis Map the Process Develop Project
Plan Measure Determine Critical Xs and
YsDetermine Operational DefinitionsEstablish
Performance StandardsDevelop Data Collection and
Sampling PlanValidate the MeasurementsMeasuremen
t Systems AnalysisDetermine Process Capability
and Baseline Analyze Benchmark the Process or
Product Establish Causal Relationships Using
Data Analysis of the Process Map Determine Root
Cause(s) Using Data Improve Design of
Experiments Develop Solution Alternatives Assess
Risks and Benefits of Solution
Alternatives Validate Solution using a
Pilot Implement Solution Determine Solution
Effectiveness using Data Control Statistical
Process Control Determine Needed Controls
(measurement, design, etc.) Implement and
Validate Controls Develop Transfer Plan Realize
Benefits of Implementing Solution Close Project
and Communicate Results
Key Analytical Tools Process Mapping and
Modeling Measurement Systems Analysis Process
Capability Statistical Tests, Modeling Root
Cause Analysis Brainstorming Design of
Experiments, FMEA, Validation Statistical
Process Control
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Process Flow for achieving 70 Improvement
Champion Black Belt Process or Product
Review performance and assure results
Select project that is considered critical to
operational success
Review and approve solutions
Authorize process change
Communicate and celebrate results
Develop alternative solutions and complete
benefit and risk assessment
Form team and follow DMAIC for project management
Determine financial benefit
Implement and standardize process changes
Understand root cause of problem
Validate Solution
For a breakthrough to occur everything is on the
table
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Six Sigma Results

• Improved Customer satisfaction
• Assure products and services meet customer
  requirements
• Improved quality, efficiency and cost of goods
  sold
• Waste, defect and variation reduction
• Financial savings (hard and soft)
• Self-sustaining infrastructure
• Defined roles and responsibilities
• Empower Champions, Black Belts and all employees
  to make meaningful improvements in
  performance
• Communication
• Commonality
• Language, training materials, tools software
• Methodology
• Expectations
• Solutions
• Financial tracking (establish, maintain metrics)

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Honeywell DOW Results
"We achieved 600 million in Six Sigma cost
savings in 1999, but cost savings are only one
part of the story. Delighting customers and
accelerating growth completes the picture. When
we are more efficient and improve work flow
throughout every function in the company, we
provide tremendous added value to our
customersthrough higher quality solutions that
are more competitively priced, delivered on time
and invoiced correctly. That makes us a more
desirable business partner." - Honeywell 1999
Annual Report http//www-a.honeywell.com/investo
r/ar99_intro_smarter.html

• "We expect Six Sigma to elevate our company to an
  entirely new level of operational performance,
  delivering 1.5 billion in EBIT cumulatively by
  2003 from the combined impact of revenue growth,
  cost reductions and asset utilization."
• - Dow 1999 Annual Report http//www.dow.com/fina
  ncial/99ann/letter03.htm

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GE DuPont Results
"The Six Sigma initiative is in its fifth year
its fifth trip through the operating system. From
a standing start in 1996, with no financial
benefit to the Company, it has flourished to the
point where it produced more than 2 billion in
benefits in 1999, with much more to come this
decade." - GE 1999 Annual Report
http//www.ge.com/annual99/letter/letter_three.htm
l

• "Six Sigma implementation continues to gain
  momentum.  At the end of the year 2000, there
  were about 1,100 trained Black Belts and over
  3,400 active projects.  The potential pretax
  benefit from active projects was 700 million."
• - DuPont Fourth Quarter and Full Year 2000
  Earnings Report http//www.dupont.com/corp/whats-
  new/releases/01/010124.html

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Section II
Section II Management Infrastructure for Six
Sigma Site Champion and Executive Staff Hands
on Champions Master Black Belt Black Belts /
Green Belts All Employees
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Interrelationship Digraph of Six Sigma
Infrastructure
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Site Champion and Executive Staff
Functions Set the vision Create the mandate for
improvement Initiate and fund the
activity Establish and maintain the reporting
structure Responsibilities (10 of
time) Identify Champions in each functional
area Monthly review of projects by
Champion Measure Champion results Training 4 hour
Executive Overview 2
day Champion Training
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Hands-On Champion
Functions Communicate the vision Create the
mandate for improvement Provide direction and
remove barriers Achieve financial results and
communicate success Responsibilities (10 of
time) Identify Black Belts and Green
Belts Identify and approve all Six Sigma projects
Biweekly review of all projects Measure Black
Belt performance Training 2 day Champion Training
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Master Black Belt
Functions Provide technical expertise on Six
Sigma and Lean methodology to Black Belts and
Green Belts Work in support of the Black Belt
and Champion Assist in education and training
activities Responsibilities (100 of time) Work
daily with team members, Black Belts and
Champions Participate in the review of
projects Monitor all Six Sigma projects Training 1
5 day Black Belt Training, 2 years minimum as a
Black Belt and a Masters Degree in a related field
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Black Belts and Green Belts
Functions Black Belts 100 dedicated for 2 years
to process improvement, Green Belts 20 Work on
improvement projects with other Green Belts and
Team Members Achieve financial results for each
project Goal of 350K Responsibilities (100
20 of time) Use the DMAIC methodology to create
breakthroughs in performance Report progress to
the Champion Hold team meetings and provide
excellent project management Work with the Master
Black Belt Training 15 day Black Belt Training
5 day Green Belt Training
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All Employees
Functions Work to achieve excellence in daily
work Participate in Six Sigma projects Support
team activities Identify opportunities for
improvement Responsibilities (5-10 of
time) Participate in Six Sigma activities as
requested Complete action items as assigned by
the team Attend team meetings Training 1 day Six
Sigma Employee training
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Section III
Section III DMAIC Breakthrough Methodology
Define Measure Analyze Improve
Control
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DMAIC Process Improvement Methodology
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DMAIC Process
Establish Controls on the critical Xs so the
improvements will be maintained
Identify ways to improve the process and validate
the solution
Metrics (Ys) linked to CTQs Define the
Problem Project Objective Project Goal
PROCESS
X1
Y1
X2
Y2
X3
Y3
X4
Measure and Analyze data and process performance
to determine the critical variables and root
cause of the problem
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Six Sigma DMAIC Define
Define Activities Identify Project, Champion
and Project Owner Determine Customer
Requirements and CTQs Define Problem, Objective,
Goals and Benefits Define Stakeholder/Resource
Analysis Map the Process Develop Project
Plan Define Quality Tools Project Charter and
Plan Effort/Impact Analysis Process
Mapping Tree Diagram
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Define Flow
Effort/Impact Analysis
VOC, Examine Candidate Projects
Develop and Approve Project Charter
Define Customer CTQs
Complete SIPOC and Process Map
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Voice of the Customer (VOC)
DMAIC Methodology Define

• Why dont you guys learn how to meet a schedule?
• Your service quality to poor
• When will you learn how to provide service and a
  Customer first attitude?
• Why dont you tell us when there is a problem?
• I sent out e-mail after e-mail with no response!
• Why do you try and make your customers
  responsible for your quality problems?
• Your RMA frequency is unacceptable

VOC is often full of emotions. We need to
restate customer statements into fact based,
performance requirements that we need to focus
on Of course Customers expect perfection
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Critical to Quality (CTQ) Characteristics
DMAIC Methodology Define
Detailed Specifications
Use the tree diagram to define Customer CTQs
Response (Y)
Performance to Schedule
Measure
Deviation from schedule in completed units
Customer Requirement
Target
Customer Needs
Product arrives on-time
100 of committed ships prior to 500 pm as
received on Customer receiving dock
SpecificationLimit(s)
LSL 0 hours late USL 6 hours early
AllowabledefectRate
lt 3.4 DPMO
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Moving to Specific Candidate Projects
DMAIC Methodology Define
Champions drive the project selection as they own
the business objectives aligned to the Executive
Staff
Interview Customers (Internal and External), on
core business issues and opportunities for
improvement Use Voice of the Customer when
collecting and analyzing data
Complete CTQ gap analysis and prioritization Deter
mine a candidate project list Estimate project
benefits in financial and measurable terms rank
projects by their impact
Determine the effort required for
each project Conduct effort to impact analysis
and prioritize the project list Select the top
projects and determine the Champion and
Owner
Critically examine Business Objectives and select
projects aligned to them with financial impact
and benefits
Candidate Six Sigma Project(s) With financial
impact!!!
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Potential Projects
DMAIC Methodology Define
Determine a candidate project list and potential
benefits Manufacturing Materials
Management NPI Finance Design HR
Conduct effort to impact analysis and prioritize
the project list
Candidate Six Sigma Project(s) Project Champion
and Owner
Projects with high impact are preferred
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Detailed Project Selection Criteria
DMAIC Methodology Define

• Achieving breakthroughs requires prioritization
  of opportunities. There are many more
  opportunities than there is time and resources to
  work on them.
• When selecting a process, we are trying to
  prioritize exactly which problem to solve. If
  the problem is clear we move on to define the
  problem.
• In selecting a project, consider these issues

• Financial and strategic benefits
• Improved customer satisfaction, CSI
• Compatible with current goals and objectives
• Translatable to other areas of the business
• Probability of success
• Level of effort, amount of resources needed to
  complete project

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Example Prioritizing Projects
DMAIC Methodology Define
Are your projects the things you like to do, easy
to do or important to do?
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Develop Charter
DMAIC Methodology Define
In this step you will establish direction for
the project by documenting

• Problem
• Objective Scope
• Goal/target
• Resource requirements
• Financial benefits
• Strategic benefits
• Team resources
• Project approval

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Develop Charter Problem Statement
DMAIC Methodology Define
A clear description of the problem to communicate
to other people in the process and rally support
to improve it

• A description of the issue or problem
• What, when, where and how the problem occurs
• What is critical to quality (CTQ) from the
  customer perspective? What is nonconforming to
  specifications?
• Define the boundaries of the problem, how big is
  the problem?
• What are the consequences of the problem to the
  Company and or Customer?
• Do not state a solution when describing a problem

Description of the Pain
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State Objective and Scope
DMAIC Methodology Define
Project Objective and Scope

• What process will the team focus on?
• What are the boundaries of the process we are to
  improve? Where does the
  process begin? Where does it end?
• Which customers will be affected / included
• What is outside of scope for the team?
• What constraints or timelines must the team work
  under?

Customer or Suppliers Site or
Line Process
Process 1 Process 2 Process 3
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Goal Statement
DMAIC Methodology Define

• Describe, in measurable terms, what success will
  look like when youve solved the problem
• Include a statement of the performance level that
  will satisfy your CTQ and the time frame in which
  you plan to implement the improvement. State
  targets and tolerances where appropriate.

Goal Statement Reduce late shipment costs
(Express Mail) to all customers by 70 from 1.5M
to 45K by January 200x. Where
When How Much
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Determine Resources
DMAIC Methodology Define
Determine the Stakeholders Who will need to be
involved and at what level for this project to be
successful? Determine Team Members Who will need
to be on the team and at what of their
time? Determine any Capital, Test or HR
Requirements What materials, testing, software
programming, outside services or equipment will
be needed? Are those costs acceptable to
management? Other Support to be Successful
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Project Plan
DMAIC Methodology Define
Project plan remains through the life of the
project
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Benefits
DMAIC Methodology Define

• Benefits may include any of the following
• Hard dollar savings (cost reduction)
• Soft dollar savings (cost avoidance)
• Improved Customer satisfaction
• Improvement in the performance metrics (cycle
  time, yield, defects, etc.)
• Improved job satisfaction (reduction in
  frustration)
• When considering benefits what must change for
  the savings to occur?

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Financial Benefits Example
DMAIC Methodology Define
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Begin Mapping the Process with a SIPOC
DMAIC Methodology Define
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Move to a detailed Process Map
DMAIC Methodology Define
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Model and Automate Workflow
Discrete Transactions
Performance Monitoring and Improvement
JMP for analysis and root cause determination
Workflow Automation
Database
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Begin Management/Champion Reviews
DMAIC Methodology Define
Once the project charter has been approved and
the team formed around the project it is
essential to begin periodic management reviews of
project performance. Black Belts and Green
Belts meet with Management to report
performance. Champions report to executive staff
on project performance. Where possible integrate
reviews into current management forums.
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Six Sigma DMAIC Measure
DMAIC Methodology Measure
Measure Activities Determine Project Critical Xs
and Ys Determine Operational DefinitionsEstablis
h Performance StandardsDevelop Data Collection
and Sampling PlanValidate the MeasurementsMeasur
ement Systems AnalysisDetermine Process
Capability and Baseline Measure Quality
Tools Quality Function Deployment
(QFD) Measurement Systems Analysis (MSA) Check
sheet Process Capability
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Measure Flow
Data Collection Plan Sample Size
List Of Measures (Xs and Ys)
MSA, GRR, Inspector Effectiveness
Data Collection, Process Baseline and Capability
Determination
Goal
Restate Improvement Goals
Add Specifications and Compute Sigma and
Capability
Baseline
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Determining Critical Xs and Ys
(Xs) Leading Process --gt Product --gt Lagging
(Ys)
DPU/Yield Scrap Rework, RMA Processing
time Wait time Delivery time Accuracy of
transaction Transaction time Product or service
quality Inventory levels Materials management
Manufacturing Cost of Quality Transaction
Cycle Time Customer satisfaction Materials
costs
XZY errors Temperature Offset Viscosity Pressure
Supplier, Receiving and Process Times
Transactional and product defects and errors by
operation
TCs, planning systems, production systems
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Using QFD to Prioritize and Select Project Ys and
Xs
DMAIC Methodology Measure
Translate customer requirements into objective
measures and prioritize project metrics
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Performance Standards for Each Y
DMAIC Methodology Measure
All Processes Need Clear Specifications
Larger is Better
Smaller is Better
Target is Best
Target zero and upper specification limit
One-sided - lower specification limit only
Two-sided specifications
LSL
USL
USL
LSL
Unacceptable Good Unacceptable
Unacceptable Good
Good Unacceptable
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Develop Data Collection Plan
DMAIC Methodology Measure
Elements for a data collection plan
Data means nothing without an understanding of
what the data is, how it was collected, and the
conditions under which it was measured Data
properly collected and analyzed will help us to
understand the root cause(s) of the problem
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Collect Visual Data to See the Problem
DMAIC Methodology Measure
Where possible use a Digital or Video Camera and
capture the defect or process problem. A
picture is worth a thousand words in
understanding and communication of the origin and
nature of problems.
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MSA for Validated Measurement
DMAIC Methodology Measure
Long Term Capability
Short Term Capability
True Value
x
Accuracy

A
x
B
x
x
Reproducibility
A
C
x
Stability
B
x

Repeatability
C
First period of time
Second period of time
Useful for characterization of variable gages and
inspection capability The data is only as good as
the quality of the measurements
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Six Sigma DMAIC Road Map
DMAIC Methodology Analyze
Analyze Activities Benchmark the Process or
Product Establish Causal Relationships Using
Data Analysis of the Process Map Determine Root
Cause(s) Using Data Analyze Quality
Tools Statistical analysis of data Cause and
effect or event diagram Histogram Pareto
diagram Run chart Scatter graph
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Analyze Flow
Project Data Xs and Ys
Analysis and Stratification of Data
Root Cause Analysis Summary
Root Cause Validation
Explained and Unexplained
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Benchmarking
DMAIC Methodology Analyze
No company is the best at all it does. Typically
there are some core competencies that make a
company great. There is much to be learned by
benchmarking other companies who are the best at
what they do. Benchmarking begins with
identification of the process or business area we
wish to examine. This should be clear from our
problem statement and objective. Knowledge that
there are other ways of doing things can be
obtained from benchmarking. Benchmarking often
speeds up the solution generation process.
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Root Cause Analogy
DMAIC Methodology Analyze
Like pulling weeds unless we address the root
that causes the problem, poor results will keep
coming back. Addressing the results or symptoms
of a problem will never provide lasting solutions
- given a little time the problem will come
back We need to understand the Root Cause of the
problem from our problem statement
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Forward Problem Solving Versus Backwards
DMAIC Methodology Analyze
Define Problem Collect Problem Related
Data Analyze Data Determine Root
Cause(s) Validate Determine what is unexplained
Forward Problem Solving
No Idea of Root Cause
Define Problem List Probable Root Causes Collect
Supporting Data Validate Determine what is
unexplained
Backwards Problem Solving
Strong Idea of Root Cause
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Evaluate Data to Determine Root Cause
DMAIC Methodology Analyze
Goal is to determine cause effect relationships
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Stratify Data to Understand Root Cause
DMAIC Methodology Analyze
Data Vendor Purch. Order Mat. Week
in Collection Agent Date Type Quarter ordered
1 2 3
Late Deliveries
100
80
60
Late Items
40
20
0
Flex c.
Connectors
ASICs
SMT parts
Solder
Material Type
25
20
15
Late Items
10
5
0
Tom
Shauna
Kris
Adam
John
25
Purchasing Agent
20
15
Late Items
Stratification Analysis of the same data
grouped and classified by the data tags to
examine frequencies at different logical levels
10
5
0
IBM
DEC
HP
NEC
MOT
Vendor
67
List Of Vital Few Xs and Critical Ys
DMAIC Methodology Analyze
Collected X and Y data

• Hypothesis testing
• t-test
• F-test
• ANOVA
• Chi-square
• Logistical regression
• Regression analysis and Model fitting

List Of Probable Root Causes and key process
sensitivities
68
Analysis of Data
DMAIC Methodology Analyze
Provides the ability to visualize the
relationship between process variables and to
understand the source and fundamental behavior of
problems
69
Analyze the Process Map for Waste
DMAIC Methodology Analyze
When Mapping the Process Consider the Following
What you think it is...
What it actually is...
What it could be...
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Check List for Root Cause Determination
DMAIC Methodology Analyze
Check and investigate all those that apply to the
problem under consideration

• Measurement
• Poor repeatability
• Poor reproducibility
• Poor accuracy
• Poor stability
• Poor linearity
• Invalid measurement or test method
• Excessive test or measurement
• Methods
• Incorrect definition
• Incorrect sequence
• Missing definitions, implicit rules
• Poor process controls
• Poor measurement controls
• Lack of critical information
• Incorrect information
• Excessive queues or out-time
• Handling
• Orientation

• Materials
• Defective
• Off-specification
• Contaminated
• Improper storage conditions
• Labeling or identification
• Incorrect amount or quantity
• Improper transportation or handling
• Expiration date exceeded or unknown
• Problem with product design
• Wrong materials
• Environment
• Physical environment (temperature, lighting,
  ESD)
• Security or safety systems
• Distractions in the environment
• Particulates
• Contamination
• People
• Level of staffing

71
5 Whys Example
DMAIC Methodology Analyze
State the problem, then ask why did this problem
occur until you reach root cause.
Missing Parts on the Board During NPI
WHAT? Why? Why? Why? Why? Why?
Improper cassette loading Missing cassette
Machine Malfunction
Failed to locate cassette Part not
available
Supplier problem Order incorrect Lack of
lead time
Design change Customer schedule
Design error Performance improvement
72
Root Cause(s) Determination
DMAIC Methodology Analyze

• Root Cause is achieved when we have identified
  the source of the problem (use the 5 Why
  approach)
• For any problem there are typically many Roots.
  They vary in frequency of occurrence. We need to
  know each root and their associated frequency and
  or of impact.
• Proper Root Cause identification requires some
  explanation of the failure mechanism based on
  understanding the process, the physics, mechanics
  or chemistry. We must be able to explain how
  changes in X cause changes in Y (otherwise we
  dont understand it!)
• Root Cause is verified when we can recreate or
  manipulate the problem
• To fix the Root Cause it must be controllable
• Knowing Root Cause does not assure we know the
  solution to the problem. Solutions can be
  formulated once we know the root of the problem

73
List of Potential Root Causes
DMAIC Methodology Analyze
Final investigation needs to be made to determine
if the factors identified are actually the root
cause of the problem
74
Summarize All Root Cause Analysis
DMAIC Methodology Analyze
For each possible root cause, determine those you
will verify. Summarize each possible root cause
with the following codes
Non Contributor (NC) Does not contribute to the
problem Possible Contributor (PC) A factor
which may have an effect on the response
Insufficient Data (ID) Not enough data to
determine the effect of the factor (may require
additional effort) Data not available (IDX) Data
not available concerning the factor Root Cause
(RC) Determined to be a root cause of the
problem Non Controllable Root Cause (RCX) A root
cause however, outside the control of the
company, individual or team
75
Root Cause(s) Validation and Summary
DMAIC Methodology Analyze

• List all probable Root Cause(s)
• Rank them in terms of effect size
• Determine the additional tests and or
  manipulation you plan to use to validate the
  factors (X) which have the greatest effect on the
  response (Y)
• Identify potential methods for controlling the
  factors which create the problem
• When validation is complete summarize all
  selected Root Cause(s) and their effect size

76
Root Cause Analysis Example
DMAIC Methodology Analyze
77
Six Sigma DMAIC Improve
DMAIC Methodology Improve
Improve Activities Develop Solution
Alternatives Assess Risks and Benefits of
Solution Alternatives Validate Solution using a
Pilot Implement Solution Determine Solution
Effectiveness using Data Improve Quality
Tools Design of Experiments Brainstorming FMEA
Risk assessment
78
Improve Flow
DMAIC Methodology Improve
Design Experiments where appropriate
Based on RCA Brainstorm Potential Solutions,
Costs, Risks and Benefits
Test and Validate solutions
Review and approve solutions with Management
N
Implement changes and determine improved process
capability.
Examine opportunities for standardization and
translation
Reach Goals?
Y
79
Brainstorm Potential Solutions
DMAIC Methodology Improve

• Use general brainstorming techniques to generate
  process and design change ideas which will
  eliminate the root cause of the problem.
• Separate ideas into short term and long term.
  Long term with take 3 months or more to
  implement, short term is less than 3 months.
• Use voting and management involvement to generate
  consensus on direction of approach
• A single solution is not required at this point
  in the improvement process. 2 - 3 short term
  solutions should be selected and ranked. 1 to 2
  long term solutions should also be selected for
  evaluation and experimentation.

80
Consider Solutions That Remove Process Waste
DMAIC Methodology Improve
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
81
Solutions Centered on Lean Methods
DMAIC Methodology Improve
Production Control
Material Flow
Machine Management
Reduce inventories and production costs while
improving quality
Workplace Management
Process Management
82
Consider Solutions that Automate the Workflow
DMAIC Methodology Improve
Discrete Transactions
Performance Monitoring and Improvement
JMP for Analysis
Periodic Management Reports
Workflow Automation
Database
83
DOE to Characterize, Improve the Process or
Product and Get Ready to Control
DMAIC Methodology Improve
Design experiments which improve the robustness
of the process. Improve process parameter
design, tolerance design and reduce the source of
defects.
Once experiments are complete critical process
parameter sensitivities can be modeled and
determined how to be targeted and controlled.
84
Evaluate Cost, Complexity, Impact,Benefit and
Risk for Each Solution
DMAIC Methodology Improve

• 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

85
Solution Evaluation Form
DMAIC Methodology Improve
Evaluate solution alternatives to assure the best
solution has been selected
86
Evaluating Risk
DMAIC Methodology Improve
Evaluate failure modes and probability to
minimize any negative effects of changes to the
product or process
87
Involve the Champion, Discuss with Management
DMAIC Methodology Improve
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 Managements insight and experience to the
priorities. This step improves the alignment of
Management to the Teams efforts
88
Evaluate Improvements in Series
DMAIC Methodology Improve
Installed New Process Equipment
Retrained the Workforce on the Process
DPU
(miss, no change) (hit, improvement)

• Implement one solution at a time. Allow for
  sufficient time to determine effect, then move to
  next solution.

89
Six Sigma DMAIC Road Map
DMAIC Methodology Control
Control Activities Determine Needed Controls
(measurement, design, etc.) Implement and
Validate Controls Develop Transfer Plan Realize
Benefits of Implementing Solution Close Project
and Communicate Results Control Quality
Tools Statistical Process Control Out of
Control Action Plan (OCAP) Design Changes to
eliminate the defect
90
Control Flow
Select SPC controls where appropriate
Based on Solution, Brainstorm appropriate
controls to sustain the gains
Implement and validate controls
Review and approve control plan with Management
Realize savings and determine final financial
benefits and ROI
Determine long term owner and close the project
91
Benefits Of Control Phase
DMAIC Methodology Control
Improvement
Time
92
Process Controls
DMAIC Methodology Control

• TYPES of CONTROLS
• Measurement Based Control Test Inspection
• Management Dashboards Review Test (error
  prone)
• Statistical Process Control Inspection (poor
  effectiveness and costly)
• Documentation Periodic Checks
• Process Flow Diagrams Scheduled Maintenance
• Product Drawings, Schematics Scheduled
  Calibration
• Process Management Plans Training and Operator
  Certification
• Written Procedures Audits
• Training Periodic Management Reviews
• Design Incentives
• Design out Product Problems Measures which are
  associated with a bonus
• Mistake Proofing Measures which are
  associated with a penalty
• Robust Design Concepts

93
Elements of a Control System
DMAIC Methodology Control
Sensor (measurement technology control
chart) Allows the system to monitor the current
process performance Alarm (control limits and
trend rules) Establish limit(s) and run rules
which require attention Control Logic (OCAP) A
predefined set of actions to follow that are
alarm specific Validate (next sample) Assure the
action was effective
Add alarms where needed and assure we do not
ignore valid alarms. SPC methods should be used
to establish alarms.
94
Define Sustaining Requirements
DMAIC Methodology Control
What Vacuum will be created when you leave?

• 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?
• From the above issues, develop a transfer plan

95
Realize the Benefits of Improvement
DMAIC Methodology Control
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
96
Close the Project or Improvement Team
DMAIC Methodology Control

• 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!

97
Section IV
Section IV Implementation Strategy
98
How Do We Do It?
Define Goal alignment Roles and
responsibilities Develop Assemble
materials Identify people Select software Select
training/consulting resources Deploy Executive
Overview Champion training / black belt project
selection Black Belt training / project
execution Management review of progress Realize
results
6s
99
Typical Six Sigma Implementation Timeline
Start 1st Wave March-August, 2002 1st Month Six
Sigma Executive Overview Training ½ day Champion
Selection Champion Training 2 days Select
software (JMP) and schedule the training resource
(ASQ-SVC) Black Belt Selection and 1st Wave Six
Sigma Projects 2nd Month 100 Commitment of
Black Belts to Process Improvement Begin Black
Belt, Green Belt Training 2 days Define, 3 days
Measure, 3 days Analyze, 3 days Improve, 3 days
Control, scheduled every three-four weeks for 5
sessions Begin Management Review of Six Sigma
projects Select Master Black Belt (Hire or
Contract) 6 Months Realize savings from 1st
Wave, savings fund second wave etc. Establish
key metrics and dashboards if not
present Register in September for ASQ Certified
Black Belt 2nd Wave September 2002
100
Expected Cost/Benefits of One Wave of Training
101
Implementation Case Study
Results from one wave of training as verified by
the Finance department
102
ASQ-SVC TLC Team Up for Training Excellence
Six Sigma Improvement Programs for West Coast
Industries
Certified Black Belt
The Statistical Discovery Software TM
Workflow Modeling and Automation
103
JMP and Ultimus Software Support
All ASQ-SVC Participants receive software use for
six months during their Six Sigma training
JMP Software for Windows and Macintosh links
statistics with graphics, helping you explore
your data, make discoveries and gain knowledge
for better decision-making. See why so may
professional choose JMP as their
quality-improvement tool of choice for Six Sigma
and quality improvement.
Ultimus software allows for effective process
modeling, analysis and automation. Transactional
modeling and full workflow automation tools are
available using Ultimus.
104
Low Cost, High Quality, Local Six Sigma Training
Public and On-site Training Champion
Training Six Sigma for Champions 16 hrs. 975
Mar/21-22/02 Black Belt Training and ASQ
National Black Belt Certification BB Six Sigma
Define 16 hrs. 975 Apr/4-5/02 BB Six Sigma
Measure 24 hrs. 1475 May/1-3/02 BB Six
Sigma Analyze 24 hrs. 1475 Jun/5-7/02 BB Six
Sigma Improve 24 hrs. 1475 Jul/10-12/02 BB
Six Sigma Control 24 hrs. 1475 Aug/7-9/02 Gr
een Belt Training GB Six Sigma Define 8
hrs. 475 Apr/12/02 GB Six Sigma Measure
8 hrs. 475 May/10/02 GB Six Sigma
Analyze 8 hrs. 475 Jun/14/02 GB Six
Sigma Improve 8 hrs.
475 Jul/19/02 GB Six Sigma Control 8
hrs. 475 Aug/16/02
Location Harmonic, Inc. 549 Baltic Way,
Sunnyvale, CA.
2nd Wave begins in September
105
Six Sigma for Champions

• Six Sigma for Champions
• Dates March 21-22, 2002
• Audience Prerequisites
• Executive officers, Directors and Managers who
  will define and manage Six Sigma Projects
• Content
• Section I Six Sigma Introduction
• Section II Management Infrastructure for Six
  Sigma, Roles and Responsibilities
• Section III Managing the DMAIC process
• Section IV Project Selection and Charter
• Section V Implementation Issues, timelines and
  Black Belt, Green Belt selection
• Section VI Measures of Success
• Location Harmonic, Inc.
• 549 Baltic Way
• Sunnyvale, CA

Bring your own laptop
106
Black Belt Six Sigma Define

• Black Belt Six Sigma Define
• Dates April 4-5, 2002
• Audience Prerequisites
• Those individuals who will work on breakthrough
  projects as the PRIMARY focus of their work
  activities. All individuals are required to have
  a project to work on and an identified Champion
  for the project.
• Content
• Section I Six Sigma Introduction
• Section II Identify Project, Champion and Owner
• Section III Determine Customer Requirements and
  CTQs
• Section IV Define Project Statement, Objectives,
  Goals and Benefits
• Section V Define Resource/Stakeholder Analysis
• Section VI Develop Project Plan
• Section VII Map the Process
• Section VIII Project Leadership
• Location Harmonic, Inc.
• 549 Baltic Way
• Sunnyvale, CA.

Bring your own laptop
107
Green Belt Six Sigma Define

• Green Belt Six Sigma Define
• Date April 12, 2002
• Audience Prerequisites
• Those individuals who will work on breakthrough
  projects as the SECONDARY focus of their work
  activities. All individuals are required to have
  a project to work on and an identified Champion
  for the project.
• Content
• Section I Six Sigma Introduction
• Section II Determine Customer Requirements and
  CTQs
• Section III Define Project Statement,
  Objectives, Goals and Benefits
• Section IV Define Resource/Stakeholder Analysis
• Section V Develop Project Plan
• Section VI Map the Process
• Location Harmonic, Inc.
• 549 Baltic Way
• Sunnyvale, CA.

Bring your own laptop
108
Project Based and Value Oriented
All training is Hands On and applied to your
companys projects. All training is done with
computer applications. Complete the training and
complete a project. Seating is limited! 20 seats
per class. Registration Information You can
register on-line using www.asq-svc.org or
www.dr-tom.com. Or register for the Six Sigma
public courses by contacting Tom Little at
(925)-285-1847 or by e-mail drlittle_at_dr-tom.com.
www.asq-svc.org www.dr-tom.com
109
Six Sigma Executive Overview Summary

• There are tremendous improvement and savings
  available to companies in their operations if
  they will mobilize their resources toward
  reduction of waste and improvement of quality
• Six Sigma requires Leadership from the Executive
  Staff
• The roadmap is clear and the methods for
  improvement are well defined
• Software tools make the data collection and
  analysis clear
• Development of an implementation and training
  plan is the next step

110
References Resources
Books E.L. Grant R.S. Leavenworth, Statistical
Quality Control (New York NY, McGraw Hill,
1996).  D.C. Montgomery, Design and Analysis of
Experiments. (New York NY, John Wiley Sons,
1996). G.E. Box, J.S. Hunter W.G. Hunter,
Statistics for Experimenters An Introduction to
Design, Data Analysis, and Model Building (New
York NY, John Wiley Sons 1978). Damelio,
Robert. (1996). The Basics of Process Mapping.
Productivity Press, Portland, OR. Web
Sites Thomas A. Little Consulting at
www.dr-tom.com ASQ Silicon Valley Section at
www.asq-svc.org Software SAS JMP contact SAS
Institute at www.jmpdiscovery.com 382
Stanwick Street Brentwood, CA 94513
1-925-285-1847 drlittle_at_dr-tom.com www.dr-t
om.com