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Lean Six Sigma Tools
( A Collection )
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Acknowledgement
Globalization and Technological advancements poses challenges andopportunities for business around the world. Comapnies have adapt to newsituations and change and improve their business processes to remaincompetetive in the market. Six Sigma and Lean Principles are tools used bycompanies around the world to attain operation excellence and improve theirbottom line by elimination defects and waste in their products and services . The
collection of these slides from various sources introduce Six Sigma and LeanPrinciples and the tools used for their implementation. We acknowledge withthanks all contributions for using in this presentation on 'Lean Six Sigma Tools'.
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Lean Six Sigma
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How Six Sigma was born
Bill Smith, a senior quality engineer at Motorola was working with a type ofcircuit board called a bay station board. The product had a much higherfailure rate than predicted, despite having been designed with meticulousattention. Smith came to realize that it was the accumulation of a lot of littledefects made during the manufacturing process not inherent design flaws that caused the high rate of early-life failures. Eliminating the source of thosedefects was therefore the only way the company could deliver higher quality to
its customers.
Smith also realized that the company needed a standard metric ofquality that could be used across all its manufacturing processes. With hisinnate zeal for perfection, he settled on a measure of variation sigma. Smithmet with Galvin in late 1985 to promote the notion of having a six sigmatolerance in terms of defects so that even shifts in process performance would
not produce defects.After listening to Smith, Galvin directed Jack Germain, Motorolas firstcorporate vice president of quality, to build on Smiths ideas. And Six Sigmawas born. In 1987 the company trademarked the term, making it official.
Everyone soon came to see that six sigma meant being near-perfect, saidMor.
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Corporate Commitment
Motorola is committed to developing these leaders
We provide these people with extensive training in statisticaland interpersonal tools, skilled guidance and management
support
Once their development has achieved a level worthy ofrecognition, we even have a term for those exceptionalindividuals :
Six Sigma Black Belts
Chris Galvin
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Distinguish Vital Few
from Trivial Many
Y = Dependent Variable Output, Defectx = Independent Variables Potential Causex* = Independent Variable Critical Cause
Define the Problem /Defect Statement
Y= f ( x1*
, x2, x3, x4*
, x5. . . Xn)
Process
(Parameters)
Material
Methods
People
Environment
Output
Machine
Measurements
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Six Sigma as a Method
Theimage cannotbe displayed.Your computer may nothaveenough memory toopen theimage, or theimagemay havebeen corrupted.Restartyour computer,and then open thefileagain. Ifthe red x stillappears,youmay havetodeletetheimageand then insertitagain.
To get results, should we focus our behavior on the Y or X
Y X1Xn
Dependent Independent
Output Input-Process
Effect Cause
Symptom Problem
Monitor Control
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Eliminate Trivial ManyEliminate Trivial Many
Qualitative Evaluation Technical Expertise Graphical Methods Screening Design of Experiments
Qualitative Evaluation Technical Expertise Graphical Methods Screening Design of Experiments
Identify Vital FewIdentify Vital Few Pareto Analysis Hypothesis Testing Regression Design of Experiments
Pareto Analysis Hypothesis Testing Regression Design of Experiments
Quantify
Opportunity
Quantify
Opportunity % Reduction in Variation Cost/ Benefit % Reduction in Variation Cost/ Benefit
Our Goal:
Identify the Key Factors (xs)
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Graph>Box plot
75%
50%
25%
Graph>Box plot
Without X values
DBP
Box plots help to see the data distribution
Day
DBP
10
9
10
4
99
94
109
104
99
94
Operator
DBP
10
9
10
4
99
94
Shift
DBP
10
9
10
4
99
94
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Statistical Analysis
0.0250.0200.0150.0100.0050.000
7
6
5
4
3
2
1
0
New
c
i
e
Freq
uenc
0.0250.0200.0150.0100.0050.000
30
20
10
0
Mac
ine6 mt
s
Frequenc
Is the factor really important?
Do we understand the impact forthe factor?
Has our improvement made animpact
What is the true impact?
Hypothesis Testing
Regression Analysis
55453525155
60
50
40
30
20
10
0
X
Y
R-
q =
6.0
Y = 2.19469 + 0.918549X
95%
I
Regression
Regression
lot
Apply statistics to validate actions & improvements
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Design of Experiments (DOE)Design of Experiments (DOE)
To estimate the effects of independent Variables onResponses.
TerminologyTerminology
FactorAn independent variable
Level A value for the factor.
Response - Outcome
X Y
PROCESS
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Why use DoE ?Why use DoE ?
Shift the average of a process.
Reduce the variation.
Shift average and reduce variation
x1 x2
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CONTROL PHASE - SIX SIGMA
Control Plan Tools:
1. Basic Six Sigma control methods.- 7M Tools: Affinity diagram, tree diagram, process
decision program charts, matrix diagrams,interrelationship diagrams, prioritization matrices,activity network diagram.
2. Statistical Process Control (SPC)- Used with various types of distributions
- Control ChartsAttribute based (np, p, c, u). Variable based (X-R, X)Additional Variable based tools
-PRE-Control-Common Cause Chart (Exponentially BalancedMoving Average (EWMA))
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PRODUCTMANAGEMENT
OVERALL
GOAL OFSOFTWARE
KNOWLEDGE OFCOMPETITORS
SUPERVISION
PRODUCT
DESIGN
PRODUCT
MANAGEMENT
PRODUCTDESIGN
PRODUCTMANAGEMENT
INNOVATION
OUTPUT
DIRECTORY
ORGANIZATION
INTUITIVEANSWERS
SUPPORT
METHODS TO MAKEEASIER FOR USERS
CHARACTERISTICS:
Organizing ideas into meaningfulcategories
Data Reduction. Large numbers of qual.Inputs into major dimensions or categories.
AFFINITY DIAGRAM
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MATRIX
DIAGRAM
Patientsche
duled
Attendantassigned
Attendantarrives
Obtainsequ
ipment
Transportsp
atient
ProvideThe
rapy
Notifiesofreturn
Attendantassigned
Attendantarrives
Arrive at scheduled time 5 5 5 5 1 5 0 0 0 0
Arrive with proper equipment 4 2 0 0 5 0 0 0 0 0
Dressed properly 4 0 0 0 0 0 0 0 0 0
Delivered via correct mode 2 3 0 0 1 0 0 0 0 0Take back to room promptly 4 0 0 0 0 0 0 5 5 5
IMPORTANCE SCORE 39 25 25 27 25 0 20 20 20
RANK 1 3 3 2 3 7 6 6 6
5 = high importance, 3 = average importance, 1 = low importance
HOWS
WHATS
RELATIONSHIPMATRIX
CUSTOMERIMPORTANCE
MATRIX
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Motorola ROI1987-1994
Reduced in-process defect levels by a factor of 200.
Reduced manufacturing costs by $1.4 billion.
Increased employee production on a dollar basis by 126%.
Increased stockholders share value fourfold.
AlliedSignal ROI
1992-1996
$1.4 Billion cost reduction.
14% growth per quarter.
520% price/share growth.
Reduced new product introduction time by 16%.
24% bill/cycle reduction.
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General Electric ROI
1995-1998
Company wide savings of over $1 Billion.
Estimated annual savings to be $6.6 Billion by the year 2000.
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The normal Distribution
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Lean Manufacturing Tools
Lean manufacturing tools are adapted to help businesses with the process ofbecoming lean. These tools include the following:
Five S: The name derives from five Japanese words beginning with S. Thepurpose of this tool is to simplify your work environment, reduce waste, andimprove safety, quality, and efficiency.
Kanban: This tool is used in pull systems as a signaling device to trigger action.Traditionally it used cards to signal the need for an item. It can trigger themovement, production, or supply of a unit in a production chain.
Poka-yoke: This is a mechanism that helps an equipment operator avoidmistakes. Its objective is to eliminate product defects by preventing, correcting,or drawing attention to human errors as they occur.
Heijunka: This is a system designed to level the production volume and
production by product type. A heijunka boxis basically a board with boxes thatlays out times with cards that let employees know what they are doing at specifictimes during the production schedule.
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Crosby's response to the quality crisis was the principle
of"doing it right the first time" (DIRFT). He would alsoinclude four major principles:
the definition of quality is conformance to
requirements
the system of quality is prevention
the performance standard is zero defects
the measurement of quality is the price of
nonconformance
Crosby's prescription for quality improvement was a 14-
step program. His belief was that a company thatestablished a quality program will see savings returnsthat more than pays off the cost of the quality program
("quality is free").
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y 5 Whys
y Analysis of variance
y ANOVA Gauge R&R
y Axiomatic design
y
Business Process Mappingy Cause & effects diagram (also known as fishbone orIshikawa
diagram)
y Chi-square test of independence and fits
y Control chart
y Correlation
y Cost-benefit analysis
y CTQ tree
y
Design of experiments
y Failure mode and effects analysis (FMEA)
y General linear model
y Histograms
y Quality Function Deployment (QFD)
y Pareto chart
y Pick chart
y
Process capabilityy Quantitative marketing research through use of Enterprise
Feedback Management (EFM) systems
y Regression analysis
y Root cause analysis
y Run charts
y SIPOC analysis (Suppliers, Inputs,Process,Outputs,Customers)
y Taguchi methods
y
Taguchi Loss Functiony TRIZ
Quality management tools and
methods used in Six Sigma
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The following example demonstrates the basic process:My car will not start. (the problem)Why? - The battery is dead. (first why)Why? - The alternator is not functioning. (second why)Why? - The alternator belt has broken. (third why)Why? - The alternator belt was well beyond its useful service life and has never
been replaced. (fourth why)Why? - I have not been maintaining my car according to the recommended serviceschedule. (fifth why, a root cause)Why? - Replacement parts are not available because of the extreme age of myvehicle.(sixth why, optional footnote)I will start maintaining my car according to the recommended service schedule.
(solution)
5Why
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CustomerCentricity
The Six Sigma culture is customer-centric; its goalis to delight customers. The quality of a product orservice is measured from the customers perspective,by its contribution to their success. This
customer focus comes through the Six Sigma drivers: Voice of the Customer: What the customer says that they
want
Requirements: Voice of the Customer input that is
translated into specific, measurable elements
Critical to Quality (CTQ): Requirements that are most
important to customers
Defect: Failing to deliver to a customers CTQ
Design for Six Sigma: Designing products andprocesses
basedon customer requirements
Critical Success Factors for Six
Sigma
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Joseph JuranBorn 1904Joseph Juran is an internationally acclaimed quality guru, similar toEdwards Deming, strongly influencing Japanese manufacturingpractices. Joseph Jurans belief that qualitydoes not happen byaccident gave rise to the quality trilogy:
o
Quality planningoQuality controloQuality improvement
The key steps in implementing company-wide strategic goals are:Identify customers and their needs both internal and external and work to meet those needsCreate measures of quality, establish optimal quality goals andorganise to meet them.Create processes capable of meeting quality goals in realoperating conditions.
Failure mode and effects
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Failure mode and effects
analysis
A failure modes and effects analysis (FMEA), is a procedure in productdevelopment and operations management for analysis of potential failuremodes within a system for classification by the severity and likelihood of thefailures.
Failure modes are any errors or defects in a process, design, or item,
especially those that affect the customer, and can be potential or actual.ffects analysis refers to studying the consequences of those failures.
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Example FMEA Worksheet
Function Failure
mode
Effects S
(severit
y
rating)
Cause(s) O
(occurren
ce rating)
Current
controls
D
(detection
rating)
CRIT
(critical
charact
eristic
RPN
(risk
priority
number
)
Recomme
nded
actions
Responsibili
ty and
target
completion
date
Action
taken
Fill tub High level
sensor
never
trips
Liquid
spills on
customer
floor
8 level
sensor
failed
2 Fill
timeout
based on
time to fill
to low
level
sensor
5 N 80 Perform
cost
analysis
of adding
additional
sensor
halfway
between
low and
high level
sensors
Jane Doe
level
sensor
disconnec
ted
10-Oct-10
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Bibliography
(2008). (): -companies, ,.4,.1, 2008., ,..(2004).
,(2007). ,
(2009). Taking Lean Six SigmaBeyond Manufacturing: Improvement, & .(2009). , , , (2000).HoneywellAerospaceElectricalSystem,Singapore
, . (2002). . - : ://.--./. & (2004). ,
SeanP. Goffnett(2004). Understanding : Education , ,. 20, . 4, - 2004. (- 2007). 20 ,-://../-
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