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1 © TLC, SSEO 1.5 22002 Thomas A. Little, Ph.D. President, Thomas A. Little Consulting
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© TLC, SSEO 1.5 22002
Thomas A. Little, Ph.D.President, Thomas A. Little Consulting
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© TLC, SSEO 1.5 22002
AudienceAudience
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 StreetBrentwood, CA [email protected]
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ObjectivesObjectives
As a result of attending this course the participant will be able to:
• Describe the Six Sigma Breakthrough strategy• Understand the Champion’s 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 OutlinePresentation 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 ISection 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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--3
6 to LSL 6 to USL
Cp=2 Cpk=1.5Cp=2 Cpk=1.5
Cp=Cpk = 2
±1.5LSL
12.5% 12.5%
75%
3.4 DPMO
3.4 DPMO
USL
Technical Definition of Six SigmaTechnical Definition of Six Sigma
Technical Definition (Motorola)
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?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 ProfitabilityCustomer 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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CenterProcess
ReduceSpread
Off-Target Too Much Variation
Centered On-Target
The objective is to understand customer requirements and reduce
process variation and defects
Reduce Process Variation & Defect RatesReduce Process Variation & Defect Rates
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Breakthrough and Continuous ImprovementBreakthrough and Continuous Improvement
1 2 3 4 5
Breakthrough Strategy
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Three Emphasis Areas for Six SigmaThree 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 ModesPast 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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• 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
What Makes Six Sigma Work?What Makes Six Sigma Work?
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Six Sigma 3 Critical ElementsSix 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 MetricsStrategic Business and Quality Metrics
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
CSI, Sales, delivery times, cost per unit, Yield, DPU, DPMO, customer response times, Web hit rates, Rework/scrap rates, etc. (Critical Business Elements)
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Level 1 Processes
Level 2 Processes
Level 3 Processes
Level 4 Processes
Executive Dashboard
Hierarchy of Operational DashboardsHierarchy of Operational Dashboards
Director Level
Manager Level
Engineering Level
Operator Level
Can we see measurable progress in our key business critical metrics?
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Six Sigma DMAIC Road MapSix Sigma DMAIC Road Map
DefineIdentify Project, Champion and Project OwnerDetermine Customer Requirements and CTQsDefine Problem, Objective, Goals and BenefitsDefine Stakeholder/Resource AnalysisMap the ProcessDevelop Project Plan
MeasureDetermine Critical Xs and YsDetermine Operational DefinitionsEstablish Performance StandardsDevelop Data Collection and Sampling PlanValidate the MeasurementsMeasurement Systems AnalysisDetermine Process Capability and Baseline
AnalyzeBenchmark the Process or ProductEstablish Causal Relationships Using DataAnalysis of the Process MapDetermine Root Cause(s) Using Data
ImproveDesign of ExperimentsDevelop Solution AlternativesAssess Risks and Benefits of Solution AlternativesValidate Solution using a PilotImplement SolutionDetermine Solution Effectiveness using Data
ControlStatistical Process ControlDetermine Needed Controls (measurement, design, etc.)Implement and Validate ControlsDevelop Transfer PlanRealize Benefits of Implementing SolutionClose 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%+ ImprovementProcess Flow for achieving 70%+ Improvement
Champion
Black Belt
Process orProduct
Select project that is considered critical to operational success
Form team and follow DMAIC for project management
Review performance and assure results
Understand root cause of problem
Develop alternative solutions and complete benefit and risk assessment
Review and approve solutions
Validate Solution
Implement and standardize process changes
Authorize process change
Determine financial benefit
Communicate and celebrate results
For a breakthrough to occur… everything is on the table
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Six Sigma ResultsSix 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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"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/financial/99ann/letter03.htm
"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 customers–through 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/investor/ar99_intro_smarter.html
Honeywell & DOW ResultsHoneywell & DOW Results
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"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
GE & DuPont ResultsGE & 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.html
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Section IISection 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 InfrastructureInterrelationship Digraph of Six Sigma Infrastructure
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Site Champion and Executive StaffSite 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 ChampionHands-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 BeltMaster 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
15 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 BeltsBlack 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 EmployeesAll 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 IIISection III
Section III DMAIC Breakthrough Methodology
Define
Measure
Analyze
Improve
Control
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DMAIC Process Improvement MethodologyDMAIC Process Improvement Methodology
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DMAIC ProcessDMAIC Process
Metrics (Ys) linked to CTQs
Define the ProblemProject Objective
Project GoalPROCESSPROCESS
X1
X2
X3
X4
Y1
Y2
Y3
Establish Controls on the critical Xs so the improvements will be maintained
Identify ways to improve the process and validate the solution
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 DefineSix Sigma DMAIC Define
Define ActivitiesIdentify Project, Champion and Project OwnerDetermine Customer Requirements and CTQsDefine Problem, Objective, Goals and BenefitsDefine Stakeholder/Resource AnalysisMap the ProcessDevelop Project Plan
Define Quality ToolsProject Charter and PlanEffort/Impact AnalysisProcess MappingTree Diagram
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“Define” Flow“Define” Flow
Effort/Impact AnalysisVOC,
Examine Candidate Projects
Complete SIPOC and Process Map
Develop and Approve Project CharterDefine Customer
CTQs
Effort / Impact Analysis
0
1
2
3
4
5
6
7
8
9
10
0 2 4 6 8 10 12
Effort
Imp
act
Impact
BB ProjectsGB Projects
Voice of The Customer
Voice of Voice of The CustomerThe Customer
Product arrives on-time
Product Product arrives onarrives on--timetime
Response(Y)
ResponseResponse(Y)(Y)
OperationalDefinition
OperationalOperationalDefinitionDefinition
SpecificationLimit(s)
SpecificationSpecificationLimit(s)Limit(s)
Error RateError RateError Rate
TargetTargetTarget
CTQ(s)
SIX SIGMAProject Charter
Resource Requirements General Information Review Schedule
Project No: Location: Activity DateProject Name: Business Start
Project Leader: Segment: DGB/BB: Business M
Master BB: Objective: AH/O Champion: Customer I
Team Members: Name Function % Time Initials CTQ(s): CCurrent Close
ProcessCapability: Sigma, Cpk, DPMO, Cycle-time, etc.
Date:
Project DefinitionProject Problem Statement:
Project Objective Statement:
Project Scope/Limitations:
Project Goals and Targets:
Project Plan:See page 2 of the project charter. Project Plan and Gantt ChartExpected Benefits: Time frame:
Hard Dollar Savings:Soft Dollar Savings:
Strategic:
Other Benefits:
Stakeholder ApprovalHands On Champion: Master Black Belt:
Name: Name:Signature: Signature:
Functional Manager: Black / Green Belt:Name: Name:
Signature: Signature:Other: Other:Name: Name:
Signature: Signature:
Date:
Suppliers Input Process (High Level) Output Customers1 1 Start Point: 1 1
2 23 2 1
2 1 22 3 13 1 2
3 1 2 4 12 3 23 4 5 1
4 1 5 22 6 6 13 7 2
Add additional rows where needed 89
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End Point:
© Thomas A. Little Consulting 2002
Who are the customers for our product or service? What are their requirements for performance
Determine the start and end points of the process associated with the problem and the major steps in the process.
What is the most appropriate end point for the process? What product or service does the process deliver to the customer?
Who are the suppliers for our product or service? How capable are they in meeting our process requirements?
What must my suppliers provide to my process to meet my needs?
Operation or Activity
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Voice of the Customer (VOC)Voice of the Customer (VOC)
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
DMAIC Methodology
Define
• Why don’t 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 don’t 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
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Performance to Schedule
Deviation from schedule in completed units
< 3.4 DPMO
CustomerCustomerNeedsNeeds
CustomerCustomerNeedsNeeds
Product Product arrives on-timearrives on-time
Product Product arrives on-timearrives on-time
ResponseResponse(Y)(Y)
ResponseResponse(Y)(Y)
MeasureMeasureMeasureMeasure
SpecificationSpecificationLimit(s)Limit(s)
SpecificationSpecificationLimit(s)Limit(s)
AllowableAllowabledefectdefectRateRate
AllowableAllowabledefectdefectRateRate
TargetTargetTargetTarget100% of committed ships prior to 5:00 pm as received on Customer receiving dock
LSL = 0 hours lateUSL = 6 hours early
Critical to Quality (CTQ) CharacteristicsCritical to Quality (CTQ) Characteristics
DMAIC Methodology
Define
Customer Requirement
Detailed Specifications
Use the tree diagram to define Customer CTQs
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Moving to Specific Candidate ProjectsMoving to Specific Candidate Projects
Candidate Six Sigma Project(s)
With financial impact!!!
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
Determine 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
DMAIC Methodology
Define
Critically examine
Business Objectives and select
projects aligned to them with
financial impact and
benefits
Champions drive the project selection as they own the business objectives aligned to the Executive Staff
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Potential ProjectsPotential Projects
Candidate Six Sigma Project(s)
Project Champion and Owner
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
Effort / Impact Analysis
0
1
2
3
4
5
6
7
8
9
10
0 2 4 6 8 10 12
Effort
Imp
act
Impact
Project Effort Impact1 6 12 3 33 4 34 7 35 10 36 2 67 5 68 8 69 1 910 9 9
Projects with high impact are preferred
DMAIC Methodology
Define
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Detailed Project Selection CriteriaDetailed Project Selection Criteria
• 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:
a. Financial and strategic benefitsb. Improved customer satisfaction, CSIc. Compatible with current goals and objectivesd. Translatable to other areas of the businesse. Probability of successf. Level of effort, amount of resources needed to
complete project
DMAIC Methodology
Define
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Example: Prioritizing ProjectsExample: Prioritizing Projects
Are your projects the things you like to do, easy to do or important to do?
DMAIC Methodology
Define
RiskRank Potential Projects Champion Financial Translatability Defined Supports Clear Complexity p(S) Total
2 Reduce lead time HC 9 9 9 9 6 6 3 80%3 Receiving process MP 6 9 6 3 9 6 9 77%4 Customer complaints DS 6 6 6 9 9 6 6 73%5 MRO material reduction LC 6 3 6 9 9 6 6 70%6 Change control system JM 6 9 0 6 6 6 6 63%1 Inventory reduction AB 9 9 9 9 9 9 6 93%7 Chip test yields JF 6 3 0 0 9 6 6 53%
0%0%0%
Project nameManager
responsible for results
Hard dollar savings
Solutions are likely to be applicable
across the site and the corporation
Currently defined
business objective
Supports immediate goals and objectives for the org.
Clear problem definition with clear project boundaries
Complexity is a function of time to complete and the
difficulty of the problem. Scope
(target for BB project is 7-8)
Probability of success
3 < $100k 3 = local6 = $300k 6 = some external 3 = <3 months9> $1M 9 = all locations 6= 4-5 months
9= 6+ months
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Business GoalsBenefits
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Develop CharterDevelop Charter
• Problem
• Objective & Scope
• Goal/target
• Resource requirements
• Financial benefits
• Strategic benefits
• Team resources
• Project approval
In this step you will establish direction for the project by documenting
SIX SIGMAProject Charter
Resource Requirements General Information Review Schedule
Project No: Location: Activity DateProject Name: Business Start
Project Leader: Segment: DGB/BB: Business M
Master BB: Objective: AH/O Champion: Customer I
Team Members: Name Function % Time Initials CTQ(s): CCurrent Close
ProcessCapability: Sigma, Cpk, DPMO, Cycle-time, etc.
Date:
Project DefinitionProject Problem Statement:
Project Objective Statement:
Project Scope/Limitations:
Project Goals and Targets:
Project Plan:See page 2 of the project charter. Project Plan and Gantt ChartExpected Benefits: Time frame:
Hard Dollar Savings:Soft Dollar Savings:
Strategic:
Other Benefits:
Stakeholder ApprovalHands On Champion: Master Black Belt:
Name: Name:Signature: Signature:
Functional Manager: Black / Green Belt:Name: Name:
Signature: Signature:Other: Other:Name: Name:
Signature: Signature:
Date:
DMAIC Methodology
Define
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Develop Charter – Problem Statement Develop Charter – Problem StatementDMAIC
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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• 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?
Project Objective and Scope
State Objective and ScopeState Objective and Scope
Customer or Suppliers Site or Line Process
DMAIC Methodology
Define
Process 1
Process 2
Process 3
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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
Goal StatementGoal Statement
Describe, in measurable terms, what success will look like when you’ve 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.
DMAIC Methodology
Define
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Determine ResourcesDetermine ResourcesDMAIC
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 PlanProject PlanSIX SIGMA Project Plan Project Name & Number:
Site: Location: Revision Date:Problem Statement:
Improvement Objective and Scope:
Goal and TargetsMetric(s)
BenefitsBaseline Goal Improvement Goals
DateDateDateDate
Tasks and Timelines Project
Phases Activity Assigned to: Start Date: End Date: Status: Review Date
DefineProject's Customer CTQProject CharterSIPOCFinancial analysis of project's benefitsDetailed process map
Measure
Analyze
Improve
Control
Team MembersTeam Leader: On Plan/On Schedule
Team BB: Behind Plan, with effort can return to schedule Team Members: Behind Plan
Task Completed
Champion:
DMAIC Methodology
Define
Project plan remains through the life of the project
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BenefitsBenefits
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?
DMAIC Methodology
Define
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Financial Benefits ExampleFinancial Benefits Example
Cost Improvements Quantified:
Process
Curr Cost ($1,000's per week) New Cost Improvement
Touch-up & Handsolder 73$ 70$ 95% 3.7$ Wash 24$ 23$ 95% 1.2$ QA/ Final Inspection 58$ 45$ 78% 12.5$ Rework 20$ 16$ 78% 4.4$ QA (QA Engineers) 5$ 4$ 78% 1.0$ Production Control/Expediting 27$ 26$ 95% 1.4$
Total per week for costs elements above 207$ 183$ per Week 24.2$
Total per Year 10,782 k$ 9,525 k$ per Year 1,257 k$
Determine costs of current baseline and the impact to cost if the goal isachieved. Consider also the full impact to all effected lines and productionoperations. If financial analysis shows poor ROI you may want to selectanother project.
DMAIC Methodology
Define
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Begin Mapping the Process with a SIPOCBegin Mapping the Process with a SIPOC DMAIC Methodology
Define
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Move to a detailed Process MapMove to a detailed Process Map DMAIC Methodology
Define
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Model and Automate Workflow Model and Automate Workflow
Database
Discrete TransactionsPerformance Monitoring and Improvement
JMP for analysis and root cause determination
Workflow Automation
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Begin Management/Champion ReviewsBegin 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 MeasureSix Sigma DMAIC Measure
Measure ActivitiesDetermine Project Critical Xs and Ys Determine Operational DefinitionsEstablish Performance StandardsDevelop Data Collection and Sampling PlanValidate the MeasurementsMeasurement Systems AnalysisDetermine Process Capability and Baseline
Measure Quality ToolsQuality Function Deployment (QFD)Measurement Systems Analysis (MSA)Check sheetProcess Capability
DMAIC Methodology
Measure
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“Measure” Flow“Measure” Flow
Data Collection Plan & Sample SizeList Of
Measures (Xs and Ys)
Add Specifications and Compute Sigma and Capability
Restate Improvement Goals
Data Collection PlanWho will
Do it?Type of Operational Measurement Data Tags Needed Data Collection Person(s) What? Where? When? How Many?
Measure Measure Definition or Test Method to Stratify the Data Method Assigned
Name of X or Y Clear definition of Visual Data tags are Manual? State What Location How The numberparameter attribute or the measurement inspection defined for the Spreadsheet? who has measure is for often of data
or condition discrete defined in such a or automated measure. Such Computer based? the being data the points to be data, way as to achieve test? as: time, date, etc. responsibility? collected collection data collected
measured product or repeatable results Test instruments location, tester, is per sampleprocess from multiple are defined. line, customer, collected
data observers buyer, operator,Procedures for etc.data collectionare defined.
Sample PlanDefine What to Measure Define How to Measure
MSA, GR&R, Inspector Effectiveness
Baseline
Goal
Data Collection, Process Baseline and Capability Determination
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(Xs) Leading Process --> Product --> 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 errorsTemperatureOffsetViscosityPressure
Determining Critical Xs and YsDetermining Critical Xs and Ys
Supplier, Receiving and Process Times
Transactional and product defects and errors by operation
T&Cs, planning systems, production systems
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Translate customer requirements into objective measures and prioritize project metrics
Using QFD to Prioritize and Select Project Ys and XsUsing QFD to Prioritize and Select Project Ys and Xs
Product or Process:
Imp
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Customer Wants TotalRapid schedule confirmation 4 3 0 3 0 3 0 3 3 0 9 24On time performance 1 9 0 6 0 3 3 3 9 3 3 39Defect free products 2 0 9 6 9 0 3 0 0 6 0 33Routine cost reduction 5 3 3 6 6 3 0 0 0 9 0 30Routine WIP reduction 7 3 0 3 3 0 0 0 0 3 0 12Minimum lead times 6 0 0 3 0 3 0 6 0 0 9 21
Total 18 12 27 18 12 6 12 12 21 21 0 0 0
Unit of Measure Min. # CSI PPM # % # Min. % Hrs.
Raw data available? Y Y Y Y Y Y Y Y Y N
Std. report available? Y Y Y Y Y Y N N N N
Reliable data source? Y Y Y Y Y Y N Y Y N
Frequency of the report? Daily Wk Wk Wk Daily Daily Daily Daily Daily n/a
Needed frequecy? Daily Wk Wk Daily Daily Daily Daily Daily Shift Daily
Target 5:00 0 5 0 Plan 100% 0 0 100% 1 hr.
Lower Limit 4:45 n/a 4.5 n/a 5% 95% 1 -0:15 50% n/a
Upper Limit 5:15 1 n/a 100 5% n/a 1 0:15 n/a 2 hr.
Measurement capabilityMeasurement validated?Competitive comparisonRanking 5 9 6 8 7 10 2 1 4 3
Relationship key: 9 Strong relationship6 Moderate relationship3 Weak relationship0 No relationship
Current Measures Needed Measures
DMAIC Methodology
Measure
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Larger is Better
All Processes Need Clear Specifications
Smaller is Better Target zero and upper specification limit
USL
One-sided - lower specification limit only
LSL
Two-sided specifications
LSL USL
Target is Best
Performance Standards for Each YPerformance Standards for Each Y
Unacceptable Good Good Unacceptable Unacceptable Good Unacceptable
DMAIC Methodology
Measure
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Elements for a data collection plan
Develop Data Collection PlanDevelop 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
Data Collection PlanWho will
Do it?Type of Operational Measurement Data Tags Needed Data Collection Person(s) What? Where? When? How Many?
Measure Measure Definition or Test Method to Stratify the Data Method Assigned
Name of X or Y Clear definition of Visual Data tags are Manual? State What Location How The numberparameter attribute or the measurement inspection defined for the Spreadsheet? who has measure is for often of data
or condition discrete defined in such a or automated measure. Such Computer based? the being data the points to be data, way as to achieve test? as: time, date, etc. responsibility? collected collection data collected
measured product or repeatable results Test instruments location, tester, is per sampleprocess from multiple are defined. line, customer, collected
data observers buyer, operator,Procedures for etc.data collectionare defined.
Sample PlanDefine What to Measure Define How to Measure
DMAIC Methodology
Measure
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Collect Visual Data to See the ProblemCollect Visual Data to See the Problem
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.
DMAIC Methodology
Measure
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MSA for Validated MeasurementMSA for Validated Measurement
Long TermCapability
Short TermCapability
xA
xB
xC
True Value
Repeatability
Reproducibility
Accuracy
Stability
First period of time Second period of time
xA
xB
xC
Useful for characterization of variable gages and inspection capability
The data is only as good as the quality of the measurements
DMAIC Methodology
Measure
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Six Sigma DMAIC Road MapSix Sigma DMAIC Road Map
Analyze ActivitiesBenchmark the Process or ProductEstablish Causal Relationships Using DataAnalysis of the Process MapDetermine Root Cause(s) Using Data
Analyze Quality ToolsStatistical analysis of dataCause and effect or event diagram HistogramPareto diagramRun chartScatter graph
DMAIC Methodology
Analyze
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Analyze FlowAnalyze Flow
Project Data Xs and Ys
Root Cause Analysis Summary
% Explained and % Unexplained
Analysis and Stratification of Data
MeasureResponses or Outputs (Ys) Factors (Xs)Dependent Variable USL LSL Target Independent Variable(s) USL LSL Target
© Thomas A. Little Consulting 2002
Root Cause Validation
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BenchmarkingBenchmarking
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.
DMAIC Methodology
Analyze
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Root Cause AnalogyRoot Cause Analogy
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
DMAIC Methodology
Analyze
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Forward Problem Solving Versus BackwardsForward Problem Solving Versus Backwards
Forward Problem Solving
Backwards Problem Solving
No Idea of Root Cause
Strong Idea of Root Cause
Define Problem
Collect Problem Related Data
Analyze Data
Determine Root Cause(s)
Validate
Determine what is unexplained
Define Problem
List Probable Root Causes
Collect Supporting Data
Validate
Determine what is unexplained
DMAIC Methodology
Analyze
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Goal is to determine cause & effect relationships
Evaluate Data to Determine Root CauseEvaluate Data to Determine Root Cause DMAIC Methodology
Analyze
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Data Vendor Purch. Order Mat. Week in
Collection Agent Date Type Quarter ordered
Late
Deliveries
1
2
3
Vendor
# La
te I
tem
s
05
10
152025
IBM DEC HP NEC MOT
Material Type
# La
te It
ems
020406080
100
Flex c.ConnectorsASICs SMT partsSolder
Purchasing Agent
# La
te It
ems
05
10152025
Tom Shauna Kris Adam John
Stratify Data to Understand Root CauseStratify Data to Understand Root Cause
Stratification: Analysis of the same data grouped and classified by the data tags to examine frequencies at different logical levels
DMAIC Methodology
Analyze
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Collected X and Y data
Hypothesis testingt-test F-testANOVAChi-squareLogistical regression
Regression analysis and Model fitting
List Of Probable Root Causes and key process sensitivities
List Of Vital Few Xs and Critical YsList Of Vital Few Xs and Critical Ys DMAIC Methodology
Analyze
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Analysis of DataAnalysis of Data
Provides the ability to visualize the relationship between process variables and to understand the source and fundamental behavior of problems
DMAIC Methodology
Analyze
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Analyze the Process Map for Waste Analyze the Process Map for Waste
When Mapping the Process Consider the Following:
What you think it is... What it actually is... What it could be...
DMAIC Methodology
Analyze
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Check List for Root Cause Determination Check List for Root Cause Determination
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 Poor management of change Incorrect revision
Machine (process & test)
Machine maintenance or calibration Machine controls or lack of controls Machine fault or defect Software or network fault Machine related contamination Machine tooling or fixtures Incorrect machine or tester
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 Training Competency or experience Supervision Conflicting goals Compliance with procedures Personality issues Physical ability or function Cognitive ability and function Knowledge deficit Communication with peers or supervisor
Check and investigate all those that apply to the problem under consideration
DMAIC Methodology
Analyze
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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
5 Whys Example5 Whys Example DMAIC Methodology
Analyze
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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 don’t 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
Root Cause(s) DeterminationRoot Cause(s) Determination DMAIC Methodology
Analyze
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List of Potential Root CausesList of Potential Root Causes
Final investigation needs to be made to determine if the factors identified are actually the root cause of the problem
DMAIC Methodology
Analyze
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Summarize All Root Cause AnalysisSummarize All Root Cause Analysis
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
DMAIC Methodology
Analyze
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Root Cause(s) Validation and SummaryRoot Cause(s) Validation and Summary
• 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
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Analyze
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Root Cause Analysis ExampleRoot Cause Analysis Example
Root Cause(s) Analysis Summary
Analysis Method Completed Investigation % Validation Validation
Process Review Potential Factor Review Date Who? Method Result Effect Method Date
Priority 1 Residual Material in Bulk Fill 15-Mar Tien Review use logs for PK RC 100% Test for residual material 28-Mar
Process MapPriority 3 Wrong Materials 9-Mar Tien Review inventory use for PK NC 0%
Visual AnalysisPriority 4 Improper use of SOP 12-Mar Kris Review SOP use on the line NC 0%
Cause and Effect (Event) Analysis
Priority 2 Invalid Assay 12-Mar Anna Verify Test Procedure NC 0%
NC - Non Contributor IDX - Data not available % Unexplained 0%
PC - Partial Contributor RC - Root Cause
ID - Insufficient Data RCX - Root Cause Not Controllable
DMAIC Methodology
Analyze
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Six Sigma DMAIC ImproveSix Sigma DMAIC Improve
Improve ActivitiesDevelop Solution AlternativesAssess Risks and Benefits of Solution AlternativesValidate Solution using a PilotImplement SolutionDetermine Solution Effectiveness using Data
Improve Quality ToolsDesign of ExperimentsBrainstormingFMEARisk assessment
DMAIC Methodology
Improve
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Improve FlowImprove Flow
Based on RCA Brainstorm Potential Solutions, Costs, Risks and Benefits
Implement changes and determine improved process capability.
Examine opportunities for standardization and translation
Design Experiments where appropriate
Review and approve solutions with Management
Test and Validate solutions
Installed New Process Equipment
DPU
Reach Goals?
Y
N
DMAIC Methodology
Improve
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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.
Brainstorm Potential SolutionsBrainstorm Potential Solutions DMAIC Methodology
Improve
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Consider Solutions That Remove Process WasteConsider Solutions That Remove Process Waste
Seven muda:1. Over production ahead of demand2. Waiting for the next process step or information3. Transporting materials unnecessarily4. Over processing5. Inventory that is more than bare minimum6. Motion by employees that is unnecessarily7. 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
DMAIC Methodology
Improve
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Solutions Centered on Lean MethodsSolutions Centered on Lean Methods
Production Control
Material Flow
Machine Management
Workplace Management
Process Management
Reduce inventories and production costs while improving quality
DMAIC Methodology
Improve
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Consider Solutions that Automate the WorkflowConsider Solutions that Automate the Workflow
Database
Discrete TransactionsPerformance Monitoring and Improvement
Periodic Management Reports
JMP for Analysis
Workflow Automation
DMAIC Methodology
Improve
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DOE to Characterize, Improve the Process or Product and Get Ready to ControlDOE 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.
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• 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 SolutionEvaluate Cost, Complexity, Impact,Benefit and Risk for Each Solution
DMAIC Methodology
Improve
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Solution Evaluation FormSolution Evaluation Form
Solution Evaluation FormList Root Cause(s) List Solutions % Effect Estimated Cost Complexity Estimated Benefit Risk* Priority Validation?Root Cause 1 Solutions 1
% of cost time or savings High Order Needeffect of effort to due to Medium of potential to
solution solution implement solution or solution verifywill have implementation short term? or Low implmentation effectivenesson the long term? improvement 1st, 2nd, 3rd of solution
root cause in customersatisfaction
Root Cause 2
* Use Risk Assessment Form
Evaluate solution alternatives to assure the best solution has been selected
DMAIC Methodology
Improve
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Evaluating RiskEvaluating Risk
Risk Assessment FormList the Solution or Failure Mode Severity Probability Score Action Owner DueMajor Elements of (What can go wrong) (1-10) (10 is (High scores Plan Date
Your Solution List each failure mode 10 is Worst very probable) need attention)
1. New Software a) Software does not link 10 6 60 Need to test database link Fred 15-Feb correctly to database early during implementation Jamesb) Software is not available on 6 7 42 time Need to review progress Bill 25-Febc) Software needs revisions 3 9 27 during weekly meeting Watson prior to deployment
2. Solution a)
b)
c)
3. Solution a)
b)
Evaluate failure modes and probability to minimize any negative effects of changes to the product or process
DMAIC Methodology
Improve
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Involve the Champion, Discuss with ManagementInvolve 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
DMAIC Methodology
Improve
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Evaluate Improvements in SeriesEvaluate 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
DMAIC Methodology
Improve
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Six Sigma DMAIC Road MapSix Sigma DMAIC Road Map
Control ActivitiesDetermine Needed Controls (measurement, design, etc.)Implement and Validate ControlsDevelop Transfer PlanRealize Benefits of Implementing SolutionClose Project and Communicate Results
Control Quality ToolsStatistical Process ControlOut of Control Action Plan (OCAP)Design Changes to eliminate the defect
DMAIC Methodology
Control
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“Control” Flow“Control” Flow
Based on Solution, Brainstorm appropriate controls to sustain the gains
Realize savings and determine final financial benefits and ROI
Determine long term owner and close the project
Select SPC controls where appropriate
Review and approve control plan with Management
Implement and validate controls
Cost Improvements Quantified:
Process
Curr Cost ($1,000's per week) New Cost Improvement
Touch-up & Handsolder 73$ 70$ 95% 3.7$ Wash 24$ 23$ 95% 1.2$ QA/ Final Inspection 58$ 45$ 78% 12.5$ Rework 20$ 16$ 78% 4.4$ QA (QA Engineers) 5$ 4$ 78% 1.0$ Production Control/Expediting 27$ 26$ 95% 1.4$
Total per week for costs elements above 207$ 183$ per Week 24.2$
Total per Year 10,782 k$ 9,525 k$ per Year 1,257 k$
Determine costs of current baseline and the impact to cost if the goal isachieved. Consider also the full impact to all effected lines and productionoperations. If financial analysis shows poor ROI you may want to selectanother project.
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0
5
10
15
20
251 9 17
25
33
41
49
57
65
73
81
89
97
10
5
11
3
12
1
Process Improvement
Process Improvement
Process Improvement
No Controls
Benefits Of Control PhaseBenefits Of Control Phase
Imp
rove
men
t
Time
DMAIC Methodology
Control
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Process ControlsProcess Controls
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
DMAIC Methodology
Control
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Elements of a Control SystemElements of a Control System
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.
DMAIC Methodology
Control
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Define Sustaining RequirementsDefine 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?
• From the above issues, develop a transfer plan
What Vacuum will be created when you leave?
DMAIC Methodology
Control
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Realize the Benefits of ImprovementRealize 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
DMAIC Methodology
Control
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Close the Project or Improvement TeamClose the Project or Improvement Team
• 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!
DMAIC Methodology
Control
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Section IVSection IV
Section IV Implementation Strategy
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How Do We Do It?How Do We Do It?
DefineGoal alignmentRoles and responsibilities
DevelopAssemble materialsIdentify peopleSelect softwareSelect training/consulting resources
DeployExecutive OverviewChampion training / black belt & project selectionBlack Belt training / project execution
Management review of progressRealize results
6
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Typical Six Sigma Implementation TimelineTypical Six Sigma Implementation Timeline
Start 1st Wave March-August, 20021st 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
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Expected Cost/Benefits of One Wave of TrainingExpected Cost/Benefits of One Wave of Training
Cost/Benefit Analysis of One Wave of Six Sigma CostsTraining and Consulting Days Training Costs % of ROIExecutive Overview 0.5 1,475$ 0.0%Champion Training 2 5,900$ 0.2%Black Belt Training
Define 3 8,850$ 0.2%Measure 3 8,850$ 0.2%Analyze 3 8,850$ 0.2%Improve 3 8,850$ 0.2%Control 3 8,850$ 0.2%
Master Black Belt 50 60,000$ 1.7%Total Training and Consulting Costs 111,625$ 3.1%Employee Costs Number Days Labor CostsChampions 5 60 60,000$ 1.7%Black Belts 8 1056 844,800$ 23.4%Green Belts 12 312 249,600$ 6.9%
1,154,400$ 32.0%BenefitsActivity Number Savings Total BenefitsCompleted Projects 15 325,000$ 4,875,000$ ROI (annualized) 3,608,975$
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Implementation Case StudyImplementation Case Study
Six Sigma Financial Analysis 3Q 4Q YTD
Total Department Expense 25,281.00$ 187,156.00$ 212,437.00$
Six Sigma Project BenefitsAlta -$ -$ -$ Quote on Hold Process -$ (5,074.13)$ (5,074.13)$ PN Reduction -$ -$ -$ Lost Units -$ (187.60)$ (187.60)$ Defective from Stock -$ -$ -$ FTF -$ 25,740.00$ 25,740.00$ Fed Ex Sweep -$ 71,867.04$ 71,867.04$ NEC RMA Optimization -$ 562,328.94$ 562,328.94$ CSP Warranty -$ 542,729.99$ 542,729.99$
Total Six Sigma Project Benefits -$ 1,197,404.24$ 1,197,404.24$
Results from one wave of training as verified by the Finance department
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ASQ-SVC & TLC Team Up for Training ExcellenceASQ-SVC & TLC Team Up for Training Excellence
Six Sigma Improvement Programs for West
Coast Industries
The Statistical Discovery Software TM
Workflow Modeling and Automation
Certified Black BeltExam Date:October 19, 2002
Registration:August 23, 2002
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JMP and Ultimus Software SupportJMP and Ultimus Software Support
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®.
All ASQ-SVC Participants receive software use for six months during their Six Sigma training
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Public and On-site Training
Champion TrainingSix 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/4-5/02BB Six Sigma “Measure” 24 hrs. $1475 May/1-3/02BB Six Sigma “Analyze” 24 hrs. $1475 Jun/5-7/02BB Six Sigma “Improve” 24 hrs. $1475 Jul/10-12/02BB Six Sigma “Control” 24 hrs. $1475 Aug/7-9/02
Green Belt TrainingGB Six Sigma “Define” 8 hrs. $475 Apr/12/02GB Six Sigma “Measure” 8 hrs. $475 May/10/02GB Six Sigma “Analyze” 8 hrs. $475 Jun/14/02GB Six Sigma “Improve” 8 hrs. $475 Jul/19/02GB Six Sigma “Control” 8 hrs. $475 Aug/16/02
Low Cost, High Quality, Local Six Sigma TrainingLow Cost, High Quality, Local Six Sigma Training
LocationHarmonic, Inc. 549 Baltic Way, Sunnyvale, CA.
2nd Wave begins in September
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Six Sigma for ChampionsSix 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 WaySunnyvale, CA
Bring your own laptop
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Black Belt Six Sigma “Define”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 WaySunnyvale, CA.
Bring your own laptop
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Green Belt Six Sigma “Define”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 CTQsSection III Define Project Statement, Objectives, Goals and BenefitsSection IV Define Resource/Stakeholder AnalysisSection V Develop Project PlanSection VI Map the Process
Location: Harmonic, Inc. 549 Baltic WaySunnyvale, CA.
Bring your own laptop
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Project Based and Value OrientedProject Based and Value Oriented
All training is Hands On and applied to your company’s 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 [email protected].
www.asq-svc.org
www.dr-tom.com
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Six Sigma Executive Overview SummarySix 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
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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 [email protected]
References & ResourcesReferences & Resources
