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_________________________________________________Applied Business Improvement

All Rights Reserved , ABI Associates, 2005

Introduction to ABIand

Statgraphics Centurion

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Statg

raphi

cs

Centu

rion

Enabled Teams

$

Statgraphics Centurion includes theframework for Accelerated Six Sigma

Statgraphics Centurion /ABI the perfectlink for Six Sigma Training & Application

ABI applies Statgraphics Centurion withproven methods for your business

ABI applies Over 50 years of combined

Engineering / Management Expertise

Nobody gives a hoot about profits. DemingSuccessful Businesses Disagree..

Statgraphics CenturionTM and ABI can HELP your business

INCREASE PROFIT

Six

Sigma

Accelerated

ActiveLeadership

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What is Six Sigma?

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What is Six Sigma?

Sigma represents a unit of measurement that

designates the distribution or spread about theaverage of a process to represent how well aprocess is performing.

The higher the sigma value, the less variation andfewer defects will reach the customer

When a company has achieved a six sigma rate ofimprovement, it has limited defects to 3.4 per million

opportunities virtual defect-free performance. The DMAIC Six Sigma Process of Problem Solution

is a natural fit for Statgraphics Centurion

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Six Sigma is .

.an Improvement System Focusedon Driving Business Success

Customer focused business strategy

A disciplined data-driven approach for eliminating defects

A statistical measurement - 3.4 DPMO

A dedication to meeting customer requirements

A philosophy, culture change for greater customer

satisfaction

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How does Six Sigma work?

An approach and set oftools for the Teamto follow when improving/designing a processor product based on Statistical Data from the

Voice of the Customer

Key to successful Implementation:Statgraphics Centurion

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The Customer

What bothers your

customer? Will this take time

away from mycustomer?

Who really is the

customer?

The Team

Time

Resources Expertise

Motivation

Management

Buy in

Genuine buy in

Payback / Benefit

To Customer

To

management To my Team

Self actualization

Culture

Savings

Student Growth

Program designed to reduce

training doubts & fears Resistance

Nurturing

Driving out statistical horror

Making problem solving fun

J ob enrichment / advancement

Savings Calculate following

Control Phase

Indirect , Direct

Productivity

Opportunity

Profit

Applied Learning

You learn by doing the thingSophocles

The importance ofThe Project DMAIC: Scientific method 101

Process Understanding

Statgraphics Centurion

Profit = Customer + Process + Employee

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The Process for Six Sigma Projects (DMAIC)Define -Listening to the Voice of the

Customer

Prerequisites

(Philosophy, Mgmt buy-in)Y=f(X) Concept & Strategy

ID Team / Key Constituents

Project Statement (4 Boxer.ppt)

Process Mapping/ Risk AssessmentQuality Function Deployment (QFD)

Financial Analysis

MeasureMeasuring Current Process

Health

Define Performance Standards

The Ys (CTQs) & the Zs7 Basic Tools (Pareto Analysis, Run

Chart, Scatter Diagrams etc.)Fishbone DiagramsValidate the Measurement SystemEstablish SPC and Process Capability

Establish Tolerance Limits

AnalyzeIdentifying important causes of

the defects

Multiple Box-Whisker

Regression Analysis (y vs x)ANOVA / Components of Variance

Hypothesis (Ho/Ha) Testing

Chi Square TestingScreening Designs

ImproveRemoving the causes of the

defects

Fishbone Revisited

Sequential Design of Experiments(DoE)

Error ProofingRevisit Tolerance Limits

ControlMaintaining the improvements

Statistical Process Control(reduced inspection)Capability Monitoring Failure Mode Effects

Analysis Action Plans

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Lets look at a sampling of Six Sigma toolsfound in Statgraphics Centurion

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Cost of Quality for a Six Sigma Project

Cost of Quality History

COQ

Prevention

Appraisal

Int. Failure

Total COQ

Total Failure

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

0

20

40

60

80

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Quality Function Deployment - The House of QualityListening to the Voice of the Customer

LowCost

Reproducible

FactoryImplementation/Demo.

Process Verification (Proof)

High Reliability(>85,000) hrs.

Small Size - Light Weight

Performance ExpandableMeets Module Elect. Performance

SystemMaintainability

Yield

49.0

438.0

Proc

ess

Cap

ability

60.0

504.0

Rate

56.0

500.0

Mod

uleCost

48.0

428.0

MTB

F

22.0

123.0

Fail

Free

Op.

Period

22.0

123.0

Size

15.0

113.0

Weight

11.0

88.0

Proc

ess

Flex

ibility

16.0

122.0

Costto

Main

tain

21.0

113.0

Availability

ofA

rray

19.0

95.0

Priority

10.0

10.0

10.0

10.0

9.0

8.0

6.05.0

1.0

69.0

345.0

Ours

2.7

2.9

2.1

3.1

2.6

2.4

3.53.6

3.5

26.4

193.1

Theirs

4.0

5.0

3.2

3.0

3.3

2.8

1.82.1

3.5

28.7

228.9

80%

1.3

3

1000/day

$200

85,00

0hrs.

10,00

0hrs.

4"x.4

6"x0.2

"

1OZ.

TBD

TBD

TBD

Absolute weight

Relative weight

InteractionsStrong PositivePositive

NegativeStrong Negative

CustomerDemands

Design Requirements

RelationshipStrong =9.0Medium =3.0Weak =1.0

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The Process Map to Understand your ProcessEarly in Six Sigma

FlowChartProcess

1

AuditProcess

2

Problems?3Correct

Problems

4

Collect Data5

Analyze Data6

In Control?7

Plot

Histogram

8

Estimate ProcessCapability

9

Capable?10

Sort Product11

Improve

Capability

12

Meeting13

No

Yes

Yes

Yes

No

No

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Brainstorming over a Fishbone Diagram

Defects

Raw card

Short circuit

Shroud

Moisture contentTime

Temperature

Solder process

SplatterChain speed

Wave pumpHeight

FlowFlux

TemperatureSetup

Control

Inspection

Measurement

Test coverage

Inspector

Components

Wrong part

Functional failure

Missing from reelVendor

Setup

Component insertion

Wrong component

Missing component

AlignmentAutoposition

Operator

Crimp

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Statgraphics & Six Sigma can take failure to meetminimum to a 6 sigma process

Bad Process Good Process

LSL Nominal

0 10 20 30 40 50

0

2

6

8

4

10

0 10 20 30 40 50

0

2

6

8

4

10

LSL Nominal

frequency

Response Variable

6 sigma process-3s

100%Defective(failure to meetminimum)

-3s

Response Variable

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Plot of Fitted Model

Diastolic80

Systolic1

40

Systolic140 = 3.97694 + 1.57601*Diastolic80

R^2 = 66% fair-good correlation

Systolic140 = -0.663584 + 1.6165*Diastolic80 Outlier removed

82 86 90 94 98 102 106

120

130

140

150

160

170

Control Ellipse

Diastolic80

Systolic140

72 82 92 102 112

100

120

140

160

180

200Alpha = 0.1 %

Statgraphics & Six Sigma enable understanding

Cause & Effect Relationships Y=f(x)

1 2 3 4 5 6

Box-and-Whisker Plot

17

18

19

20

21

22

MPG_

20_

1

Driver

Plot of Fitted Model

weeks

chlorine

0 10 20 30 40 50

0.38

0.4

0.42

0.44

0.46

0.48

0.5

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SnapStat: Capability Assessment (Individuals)

Data variable: strengthSample size =100 Mean =254.64

Specifications Beyond Spec. Z-ScoreUSL =300 0.000000% 4.25Nom =250LSL =200 0.000000% -5.12

Long-Term Capability Short-Term CapabilitySigma =10.6823 Sigma =10.1637Pp =1.56 Cp =1.64

Ppk =1.42 Cpk =1.49DPM =11.03 DPM =4.08

X Chart

Observation

strength

0 20 40 60 80 100220

240

260

280

300

254.64

285.13

224.15

Capability Histogram

strength

frequency

200.00 250.00 300.00

200 220 240 260 280 3000

5

10

15

20

25

Range Chart

Observation

MR(2)

0 20 40 60 80 1000

10

20

30

40

50

11.46

37.46

0.00

Probability Plot

strength

Norma

lDistribution

200 220 240 260 280 300200

220

240

260

280

300

Tolerance Chart

Observation

strength

0 20 40 60 80 100200

220

240

260

280

300

250.00

300.00

200.00

Snapstats:A Special Feature in

Statgraphics Centurion forQuick Process Capability

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Process Development Using

Sequential Experimentation

0

10

20

30

1 2 3 4 5 6 7

Experiment No.

Response

Variable

ResponseSurface

Factorials

Screening Designs

Climbing to the peak of themountain in the fewest

number of trials

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0 5 10 15 20 25 30 35 40 45

1

2

3

4

Fat (gms) UGH!

Cost/Volu

me(cents)

Orville

Pillsbury

Betty Crocker

Kohls

Regular (plain)

Reg+1 tbspReg+2 tbsp

Reg+3 tbsp

Reg+4 tbsp

Regular =Non-Microwave Old Capitol Popcorn

Six Sigma Enters the World of a Science Project Maybe Microwave Popcorn aint so Hot !

X2-

X1X3

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Class Exercise

To Demo DoE

Class Exercise

To Demo DoE

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You are put in Charge ofthis Six Sigma Project

Customers of OTI (Optimum Travel, Inc.) have beencomplaining about the limited Travel Distance of itsmain Product, the 6 Sigma Golf Ball.

Management wants to increase the travel distance to

improve customer satisfaction and beat the competition.

How Would Your Team Begin ?

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Course Offerings

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ABI Six Sigma Company Offeringsusing Statgraphics CenturionTM

Executive Overview (1/2 Day)Six Sigma Overview (1 Day or 2 Day)Six Sigma Accelerated (6 Day)

(2 Day and 3 Day Sessions with Project/ Mentoring)Six Sigma Green Belt (10 Day)(Four 2 Day Sessions with Project/ Mentoring)

Six Sigma Black Belt (14 Day)

(Five 2-3 Day Sessions with Project/ Mentoring)

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ABI Six Sigma Overview.ppt

_________________________________________Applied Business Improvement


Six Sigma Executive Overview

Outline

What is Six Sigma?

- Definition and Organization Infrastructure

How Does Six Sigma Improve Business Performance?

Who is Using Six Sigma? What have been the Benefits?

Where can Six Sigma be Used? (In My Business?)

Six Sigma Methods and Tools using Statgraphics

How do I Implement Six Sigma?

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Six Sigma Overview

Define / Measure / Analyze (Day 1)

What is Six Sigma?DMAIC Model

Project SelectionProject CharterTeam Roles and ResponsibilitiesVoice of the Customer

Concept EngineeringQuality Function DeploymentUsing SIPOC for Process Identif icationProcess MappingMeasurement System Analysis

Data Collection MethodsUnderstanding VariationFundamentals of Statistical Process Control (SPC)Defining Process Capability

Calculating Sigma Levels /DPMO

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Six Sigma Overview

Analyze / Improve / Control (Day 2)

Seven Basic Quality Tools for Analyzing Data

Basic Regression

Design of Experiments (DoE)

Analysis of Variance (ANOVA)

Failure Mode & Effects Analysis (FMEA) Error Proofing

SPC for Process Control

Piloting and Implementing a Solution Process Control Plan

Reporting Project Benefits / Financial Impact

Leveraging Best Practices

Summary and Lessons Learned

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A li d B i I t

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Session 1 Define (1 Day)1.1 Six Sigma Overview

1.2 DMAIC Model

1.3 Project Selection / Charter

1.4 Team Roles and Responsibilities

1.5 Voice of the Customer / Concept Engineering

1.6 Quality Function Deployment (QFD) STATGRAPHICS Centurion TM

1.7 Process Map STATGRAPHICS Centurion TM

1.8 Cause & Effect STATGRAPHICS Centurion TM

1.9 Cost of Quality Trend Analysis STATGRAPHICS Centurion TM

1.10 StatReporter STATGRAPHICS Centurion TM

Session 2 - Measure (1 Day)

2.1 Data Collection Methods2.2 Understanding Variation

2.3 Calculating Sigma Levels/ dpu/ DPMO STATGRAPHICS Centurion TM (Tools)

2.4 Sample Size Determination STATGRAPHICS Centurion TM

2.5 Scatter plots/ Exploritory Plots /Time Sequence Plots STATGRAPHICS Centurion TM

2.6 Gage Studies STATGRAPHICS Centurion TM

2.7 Basic Statistical Process Control (SPC) STATGRAPHICS Centurion TM

2.8 Process Capability STATGRAPHICS Centurion TM

2.9 SnapStats/ StatAdvisorSTATGRAPHICS Centurion TM

Session 3 - Analyze (1 Day)

3.1 Variable Data STATGRAPHICS Centurion TM

3.2 Att ribute Data STATGRAPHICS Centurion TM

3.3 Hypothesis Tests STATGRAPHICS Centurion TM

3.4 Reliability Analysis STATGRAPHICS Centurion TM

3.5 SnapStats STATGRAPHICS Centurion TM

Six Sigma Accelerated (SSA) Course Outline

A li d B i I t

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Session 4 - Improve (1 Day)

4.1 Analys is of Variance (ANOVA) STATGRAPHICS Centurion TM

4.2 Curve Fitt ing Made Easy STATGRAPHICS Centurion TM

4.3 Regression STATGRAPHICS CenturionTM

4.4 Experimental Design Creation / Analysis STATGRAPHICS Centurion TM

4.5 ix Sigma Golf Exercise

Session 5 - Control (1 Day)

5.1 Variable / Att ribute Control Charts STATGRAPHICS Centurion TM

5.2 Acceptance Sampling STATGRAPHICS Centurion TM

5.3 Classification Methods (optional) STATGRAPHICS CenturionTM

5.4 Pilot ing / Implementing Process Improvement / Assessment

5.5 Process Control Plan / Documentation

5.6 Report ing Project Benefits / Financial Impact

Session 6 Project Presentations (1 Day)

6.1 Team Project Presentations

6.2 Leveraging Best Practices / Lessons Learned6.3 Celebration

SSA Outline

Statgraph

icsCe

nturio

nPe

rmits

Learning

Six

Sig

main5

Day

s

Applied Business Improvement

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Six Sigma Green Belt Training

Session 1Define/Measure

2 Days

Six Sigma Overview

Whats In It for Me?

DMAIC Model

Project Selection

Project Charter

Team Roles and Responsibili ties


Quality Function Deployment (QFD)

Cost Benefit Analysis

SIPOC for Process Identification

Process Mapping

Basic Statist ics Summary

Statgraphics Tutorial


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Six Sigma Green Belt TrainingSession 2

Measure/Analyze

2 Days

Project Presentation - Define/Measure

Measurement System Analysis

Data Collection Methods

Understanding Variation

Using Statistical Process Control (SPC)

Defining Process Capability

Calculating Sigma Levels/DPMO

Seven Basic Quality Tools for Analyzing Data

Regression Made Easy


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Session 3Analyze/Improve

2 DaysProject Presentation - Measure/Analyze

Hypothesis Testing

Design of Experiments (DoE)

Six Sigma Golf Exercise


Failure Modes and Effects Analysis FMEA)

Error ProofingSPC for Process Control


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Session 4Improve/Control

2 DaysProject Presentation - Analyze/Improve

Piloting Process Improvement

Process Improvement Assessment

Implementing a Process Improvement

Process Control Plan

Process Documentation

Reporting Project Benefits/Financial Impact



Green Belt Knowledge Assessment (Optional)


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Six Sigma Black Belt Training

Session 1Define

2 Days

Six Sigma Overview

Whats In It for Me?

DMAIC ModelProject Selection

Project Charter

Team Roles and ResponsibilitiesSIPOC for Process Identi fication


Quality Function Deployment (QFD)

Cost Benefit Analysis

Basic Statistics Summary

Statgraphics Training

Appl ied Business Improvement

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_________________________________________________ pp p



Session 2Measure

2 Days

Project Reviews

Process Mapping

Measurement System Analysis

Data Collection Methods

Understanding Variation

Statistical Process Control (SPC)

Process Capability

Calculating Sigma Levels / DPMO

Measure Statistics


Appl ied Business Improvement

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_________________________________________________ pp p


Six Sigma Black Belt TrainingSession 3

Analyze

3 Days

Project Reviews

Seven Basic Quality Tools for Analyzing DataLinear and Multiple Regression

Hypothesis Testing

Design of Experiments (DoE)Six Sigma Golf Exercise


Analyze Statistics



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36All Rights Reserved , ABI Associates, 2005


Session 4

Improve3 Days

Project Reviews

Failure Modes and Effects Analysis (FMEA)

Error Proofing

Design for Six Sigma (DFSS)

Piloting Process Improvement

Process Improvement Assessment

Implementing Process Improvement

Improve Statistics



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Session 5Control

2 Days

Project Reviews

Lean Enterprise

SPC for Process Control

Process Control Plan

Process Documentation

Reporting Project Benefits/Financial Impact



Black Belt Knowledge Assessment (Optional)



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ABI Six Sigma Company Offerings using

Statgraphics CenturionTM

Six Sigma Executive Overview (1/2 Day) $ 2,500Six Sigma Overview (2 Day) (1 Day also available) $ 5,000Six Sigma Accelerated (6 Day) (Under Development) $ 15,000

(2 Day and 3 Day sessions with Project/Mentoring)Six Sigma Green Belt (10 Day) $ 25,000

(Four 2 Day sessions with Project/Mentoring)Six Sigma Black Belt (14 Day) $ 35,000

(Five 2-3 Day sessions with Project/Mentoring)

Design for Six Sigma (DFSS) (Under Development)(3 Days following Six Sigma Training)

Add T&L plus course material / books to each course cost(assuming meeting room / meals/ refreshments provided)

Maximum Class size 25Additional Consulting Available

Public and Private Courses available. ABI willing to customize training to specificcustomer needs based on Needs Assessment with sponsoring management.


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Process Understanding and Improvement

Course Objective: Provide a working knowledge of Statistical

Process Control (SPC) and Process Capabili ty and introduce

the Basic Quality Tools for Process Improvement

PAGES DELIVERABLES

3-8 Working with Data

9-14 Understanding Variation

15-35 Principles of SPC 36-42 Introduction to Control Charts

43-72 Variables Control Charts (X-MR ; Xbar-R)

73-98 Attributes Control Charts (c ; u ; np ; p)

99-110 Process Capability - Variables 111-115 Process Capability Discrete

116-122 Tolerance Intervals (optional)

123-137 Tools to Understand and Improve the Process


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Introduction to Design of Experiments

Session Topics

Common Approaches to ExperimentationWhat is Design of Experiments (DoE)?Factorial DesignsThe Process of ExperimentationDemo: Catapult Experiment Using Statgraphics

- Analysis of Variance (ANOVA)Detectable EffectsFractional Factorial DesignsConfounding

Screening DesignsResponse Surface OptimizationTaguchi Methods


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Introduction to Design of Experiments

Process of Experimentation

Define Project- Identify Response Variables

Understand Current SituationPerform Designed Experiment

- Identify Factors

- Choose Factor Levels

- Select Design (Replication)- Randomize Experiment Runs

- Collect Data

- Analyze Data

- Form Conclusions

- Verify ResultsDefine and Implement SolutionsRecord ResultsStandardize ResultsDetermine Future Plans


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ABI Introductory Company Offerings usingStatgraphics CenturionTM

Process Understanding and Improvement (1/2 Day) $ 2,500(1 Day also available)

Design of Experiment Executive Overview (1/2 Day) $ 2,500(1 Day also available)

Design of Experiments Introduction (1 Day) $ 2,500

Add Travel & Living Expense plus course material / books to each course cost(assuming meeting room / meals/ refreshments provided)

Maximum Class size 25Additional Consulting Available

Public and Private Courses available. ABI willing to customize training to specificcustomer needs based on Needs Assessment with sponsoring management.

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