4 Growth Overview

7/27/2019 4 Growth Overview

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© 2002 ConceptFlow 0

Growth and Innovation (DFSS) Fundamentals




Module Learning Objectives

• By end of this module participant will be able to• Understand the importance and need for DFSS methodology in

Design of products, processes and service • Describe the phases (IDOV) of Breakthrough Design ™

• Introduce Quality Functional Deployment (QFD), and its applicationof translating client needs and wants to functional requirements




ReduceVariabilityEliminateWaste

Growth

DMAICLEAN

DFSS

Merrill Lynch Six Sigma is a System of Proven Methodologies…

Growth Engines

El iminate Redundancies

Develop Talent

Service

Let’s look at the third area of these 3 Key Components . . .






DFSS methodology allows us to create designsthat are six sigma with reference to clientrequirements and service delivery capability.

Client

RequirementsDesign Process

Capability

Design for Six Sigma




Why Design for Six Sigma ®?

• Institutionalizes client-centric approach to newservice offerings

• Provides a platform for growth• Enhances the six sigma journey beyond waste

elimination and variation reduction• Delivers breakthrough innovations• Enhances the development of the Black Belts

• Results in demonstrable success• Sustains gains


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Design Opportunity

1000:1 SERVICE

DEFINITION 100:1

SERVICE DESIGN

10:1 PROCESS

DESIGN 1:1 DELIVERY

SERVICE IMPROVEMENT

LOW VISIBILITYHIGH RETURNS

HIGH VISIBILITYLOW RETURNS



DFSS LEVERAGE IN PRODUCT DESIGN

CostInfluence

ActualCost

50%

5%

30%

15%

5%5%

20%

70%

OVERHEAD

LABOR

MATERIAL

DESIGNSmallest Cost ElementLargest Cost Influence

Design Influence on Total Cost


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ResourcesSpent

Service Development and Resource usage

Time

DFSS

Launch

Upfront Investment Is Most Effective And Efficient

TraditionalService

Development



Service Development and Risk

R i s k

Time

DFSS

Product

Launch

TraditionalService

Development



The Big Picture

Process ManagementManage for Six Sigma

Ideal Final Result



DMAIC, DFSS And Process Management

• Improvement (DMAIC) Project

• Discover and manage critical inputs thatdrive CTS Performance

• DFSS Project

• Create designs across CTS and sub-processes

• Process Management

• Manage core processes

CTS Tree

QFD

Core Process Matrix



Analyze Measure Improve Control Define

Optimize Design Validate Identify

Yes

Is TheImprovement

a New or Redesigned

Product/ Service?

Yes

Does aProcessExist?

No

IsIncremental

Improvement /Reaching

EntitlementEnough?

No

Yes No

DMAIC Projects often Generates DFSS Projects

Waste El iminat ion and Var iabi l i ty Reduc t ion

Growth & Innov a tion

When Do We Use DFSS?






BRE

AKT

HROUGH

DESI

GN

BreakthroughDesign Phase

Design Step Objective Roles

Identification

Project Planning Identify key business issues related toproject start up Executive

Client VoiceProject DefinitionCollect Voice of

Client

DesignProjects to Achieve

Objectives

ChampionBlack Belt

DesignConceptualPreliminaryDetail

Create designs thatsatisfy client needs

Design TeamBlack Belt

Optimization Pilot/ PrototypePilot designsComplete plannediterations

Validation Implement/Launch

Full scale service/production

Black BeltImplementation TeamChampion

Executive

How is Breakthrough Design Executed?




ClientNeeds

T ol l g

a t e 1

T ol l g

a t e 2

T ol l g

a t e 3

T ol l g

a t e 4

T ol l g

a t e 5

• Gather needs• Translate needs to

CTS’s • Translate CTS’s to

functionalrequirements

• Assess technology• Develop plan• Assess risk

• Translate functionalrequirements todesign parameters

• Develop/evaluatedesign alternatives

• Resolve designconflicts

• Assess risk

• Flow down systemdesign to subsystems

• Design for reliability,maintainability

• Mistake proof design• Assess risk

• Develop transfer functions

• Develop systemcapability

• Assess design gaps• Assess risk

• Run pilot• Optimize design• Verify system

capability• Assess risk

T ol l g

a t e 6

6 SigmaProcesses

ConceptualDesign

PreliminaryDesign

DetailDesign

Pilot/Prototype

Pre-Launch LaunchT

ol l g

a t e 7

Identify ValidateDesign Optimize

• Demonstrate process/ product capability


• Monitor systemcapability

• Implement design and process control plans

• Develop transition plan

DFSS methodology allows us to create designs that are six sigma

with reference to Client requirements and service deliverycapability

•Pugh Selection Matrix•TRIZ•DeBono's LateralThinking Tools•Quality FunctionDeployment•Design Scorecard•DFMEA• Axiomatic Design

•Simulation Tools:SigmaFlow, iGrafx,SigmaCalc, FEA•Quality FunctionDeployment•TRIZ•Design Scorecard•DFMEA•Infrastructure ProcessMap•Standardization

•DOE•QFD•TRIZ•Simulation ToolS•Design Scorecard•ProcessVerification•DFMEA•Process FMEA•Reliability Testing

•Survey Design•Quality FunctionDeployment•Kano Diagrams•Product TechnologyRoadmap•Balanced Scorecard•MeasurementSystems Analysis

•Design of Experiments:Conjoint, ResponseSurface Methods•Design Scorecard•MeasurementSystems Analysis

•Capability Analysis•Design of Experiments:Response SurfaceMethods•Design Scorecard

•Balanced Scorecard•Design Scorecard•Statistical ProcessControl•Capability Analysis

Breakthrough Design Roadmap

Details on Tollgates contained in the Appendix




DFSS Activities

• Secure leadership commitment• Scope project, align resources

• Establish system of project management• Gather the client requirements (CTS)• Assess the competition

• Establish the functional requirements• Generate the design requirements

• Develop conceptual designs• Develop preliminary designs• Evaluate Alternatives

• Develop detailed design• Establish Transfer Functions• Predict design performance• Simulate design• Prepare Control Plan

• Pilot new design• Confirm Client requirements are met• Implement new design




DFSS Projects

Process 1 Process 2 Process 3

Sub-Process 13

Sub-Process 11

Shared Service

Sub-Process 12

Sub-Process 131

Sub-Process 132

Enterprise-wide Project Design project addressing large

systems or processescharacterized by numerous

CTS and sub-processes

Discrete Projects Design projects with a smallnumber of CTS metrics and

targeting processes and

services controlled within thesponsoring Organization

Large systems-wide objectives achieved by aligning smaller projects




What is Quality Function Deployment (QFD)?

QFD is a systematic methodology that aligns client needs (Voice of theClient) with the design process, which is executed by a multifunctionaldesign team with a specific purpose.




Why Learn QFD?

• Methodology for including the Voice of the Client in process andproduct design• Decrease design cycle time• Decrease costs• Maximize profits




7

3

5

41

6

2

8

DIRECTION OF IMPROVEMENT

CALCULATEDIMPORTANCE

COMPETITIVE

COMPARISON/

CUSTOMER

RATINGS

CONFLICTS

CUSTOMER

NEEDS

(What’s)

CORRELATIONS

COMPETITIVE(TECHNICAL)

BENCHMARKS

TARGETS & LIMITS

CHARACTERISTICS/MEASURES

(How’s)

House of Quality Rooms

• The House of Qualitycontains rooms, each of which serve as function totranslate Voice of Client intoIn House requirements.

• The Appendix contains detailfor each house.• We will review House of

Quality in detail in Week 6.




Reference Material

Growth & Innovation – Cheat Sheet and KeyQuestions to Ask

I

D




• Secure leadership commitment• Scope project, align resources• Establish system of project management• Gather the client requirements (CTS)• Assess the competition

I IDENTIFY PHASE

For the identify stage of your project:

DFSS Key Concepts

Quality Functional Deployment QFD is a systematic methodology that alignsclient needs (Voice of the Client) with the designprocess, which is executed by a multifunctionaldesign team with a specific purpose.

Deliverables• Project Charter • Project Plan• Change Plot• Gather Client Needs• Translate Needs to CTS• Translate CTS to Functional

Requirements• Assess Technology Technology Roadmap• Technology Benchmark • Competitive Benchmark • Financial Analysis• Project Risk Assessment

ClientNeeds

Tollgate #1

• Establish the functional requirements• Generate the design requirements• Develop conceptual designs• Develop preliminary designs• Evaluate Alternatives

D DESIGN PHASE

For the design stage of your project:

Tollgate #2

Deliverables • Concurrent Enterprise Plan• Potential Solutions Identified• Solutions Evaluation• Design FMEA• Design Scorecard• Change Plot• Project Risk Assessment

Tollgate #3Deliverable

• Systems to Sub-system FlowDown

• Translate Functional Require-ments into Design Requirements

• Axiomatic Design• Mistake Proof Design• Procurement Strategies• Change Plot• Project Risk Assessment• Analytical DOE• Supply chain capability study

Tollgate #4Deliverables • Experimentation DOE• Parameter Design• Transfer Functions Established• Requirements Flow Down• Capability Flow Up• Optimize Design• Statistical Tolerances Established• Change Plot• Project Risk Assessment

ConceptualDesign

PreliminaryDesign

DetailDesign

DFSS Key Concepts

Survey DesignWould you treat a friend or familymember like you are about to treat thepeople in your research? The Ethics of Survey Design requires that the subjectsunderstand how you will use the data.

O

V




• Develop detailed design• Establish Transfer Functions• Predict design performance• Simulate design• Prepare Control Plan

OPTIMIZE PHASE

For the optimize stage of your project:

Tollgate #5

DFSS Key Concepts The Design Process

O

Deliverables• Create Test Environment• Run Pilot• Optimize Design• Capability Flow Up• Change Plot• Project Risk Assessment• Reliability Growth Tests• Low Rate Initial Production

(LRIP) test

Tollgate#6

Deliverables• Tolerance Design• Capability Flow Up• Change Plot• Mistake Proof Service Delivery Poke Yoke• Project Risk Assessment• Mfg. Transition Plan• Lean Procurement Strategies

Pilot/Prototype

PreProductionPreLaunch

Upfront Investment Is Most Effective And Efficient

The Kano AnalysisThe Kano Analysis provides

A method to classify client wantsInto three distinct groupingsDelighters, Satisfiers, and OneDimensional wants

• Pilot new design• Confirm Client requirements are met• Implement new design

V VALIDATE PHASE

For the validate stage of your project:

DFSS Key Concepts

Tollgate #7

Deliverables

• Implement Design Plans• Implement Control Plans• Transition plans• Capability Flow Up

Launch

Satisfaction

Dissatisfaction

ServiceDysfunctional

ServiceFully

Functional

One-DimensionalDelighters

Must Be

DFSS Key ConceptsTRIZTRIZ is a process of analyzingContradictions and using a methodOf innovation founded in the former Soviet Union in the 1960’s that was Based on investigating millions of Patents to develop an approach toDealing with the contradiction.




EliminateWaste ReduceVariability

Growth

Six Sigma Elements

Designing products, services, and processes thatsatisfy both client and business needs at six sigma

quality

Growth and Innovation Report-OutQuestions and Key Concepts

The Tollgate Process

Use of a tollgate process provides disciplinein the development and design of products andservices. DFSS methodology allows us to createdesigns that are six sigma aligning clientrequirements and bus iness capabilities.

Questions for reviewing the Tollgate Process – Do you have a signed charter that identifies the rolesof your team and secures leadership commitment?What was your process to gather client needs.When issuing surveys, what did you communicate toyour clients regarding the use of their information?Do you have a project plan?What was your source for competitivebenchmarking?What risks did you identify moving between ClientNeeds and Conceptual Design.What tools did you use to work through the designprocess to ensure that the best solutions werevalidated.

DFSS Key Concepts

DMAIC projects often generate DFSS projects

Analyze Measure Improve Control Define Measure Improve Control Define Analyze

Design for Six Sigma

Yes

Is theImprovement

a new or redesignedprocess or

service?

No

No

Does theprocess/productexist?

No No

Yes

No

Yes Willachieving

entitlementaccomplish

goals?

Yes




Module Learning Objectives

• By end of this module participant will be able to• Understand the importance and need for DFSS methodology inDesign of products, processes and service

• Describe the phases (IDOV) of Breakthrough Design ™

• Introduce Quality Functional Deployment (QFD), and its application

of translating client needs and wants to functional requirements



Trademarks and Service Marks

Six Sigma is a federally registered trademark of Motorola, Inc.

Breakthrough Strategy is a federally registered trademark of Six Sigma Academy.

VISION. FOR A MORE PERFECT WORLD is a federally registered trademark of Six Sigma Academy.

ESSENTEQ is a trademark of Six Sigma Academy.

FASTART is a trademark of Six Sigma Academy.

Breakthrough Design is a trademark of Six Sigma Academy.

Breakthrough Lean is a trademark of Six Sigma Academy.

Design with the Power of Six Sigma is a trademark of Six Sigma Academy.

Legal Lean is a trademark of Six Sigma Academy.

SSA Navigator is a trademark of Six Sigma Academy.

SigmaCALC is a trademark of ix Sigma Academy.

iGrafx is a trademark of Micrografx, Inc.

SigmaTRAC is a trademark of DuPont.

MINITAB is a trademark of Minitab, Inc.




Appendix 1 – For Reference Only

House of Quality – Room Details




House of Quality Room #1

• Client needs/wants• Importance of each need/want• Have measurable CTS’s

addressed all client needs of highimportance? (rooms #1 and #3).

• Do all CTS’s have at least onecorrelation with a client need?Empty columns in room #4?

• Product or process should at leastaddress highest weighted columnimportance scores (room #5).

• Have you addressed conflicts andsynergies? (room #8; roof)• For strong conflicts/synergies,

changes to one CTS (room #3)could effect other CTS’s. 7

3

5

41

6

2

8



COMPETITIVE

COMPARISON/

CUSTOMER

RATINGS

CONFLICTS

CUSTOMER

NEEDS

(What’s)

CORRELATIONS


BENCHMARKS

TARGETS & LIMITS


(How’s)




Complete Room #1

Importance Scores

One-Dimensio

nal

Delighter s

Must Be

7

3

5

41

6

2

8




Client Needs for Auto Loan Process

Scale: 1 to 5

First Level Need Secondary LevelNeed

Third Level Need Importance

Good Service Professional AndKnowledgeable Staff

4.0Treats me wellthroughout process

5.0Staff Willing To Answer Questions

4.0Familiar with market &competition

Familiar with loan process5.0

Empathy (my situation) 2.0

Importance of Individual Client Needs: Room#1

Develop fromVOC





• Benchmarking informationfrom client• Comparison between you and

your competition

7

3

5

41

6

2

8



COMPETITIVE

COMPARISON/

CUSTOMER

RATINGS

CONFLICTS

CUSTOMER

NEEDS

(What’s)

CORRELATIONS


BENCHMARKS

TARGETS & LIMITS


(How’s)




First Level Need Second Level Need Third Level Need

Good Service Professional AndKnowledgeable Staff

Treats me wellthroughout process

Staff Willing To Answer Questions

Familiar with market

& competition

Client Rating1 2 3 4 5

– Our Company

– Competitor #1

– Competitor #2

Competitive ComparisonClient Needs for Auto Loan Process

Competitive Comparison (HOQ Room #2)





• Service or product characteristics (CTS)• Measurable• How to measure client needs• Direction of improvement

7

3

5

41

6

2

8



COMPETITIVE

COMPARISON/

CUSTOMER

RATINGS

CONFLICTS

CUSTOMER

NEEDS

(What’s)

CORRELATIONS


BENCHMARKS

TARGETS & LIMITS


(How’s)





• Association/correlation of needs/wants and characteristics(rooms 1 and 3)

• Use 1 – 3- 9 scale indicating weak,moderate, or strong relationship

7

3

5

41

6

2

8



COMPETITIVE

COMPARISON/

CUSTOMER

RATINGS

CONFLICTS

CUSTOMER

NEEDS

(What’s)

CORRELATIONS


BENCHMARKS

TARGETS & LIMITS


(How’s)





• Cross multiply importance andcorrelation scores and sumcolumns

• Results in weighting of characteristics/measures

7

3

5

41

6

2

8



COMPETITIVE

COMPARISON/

CUSTOMER

RATINGS

CONFLICTS

CUSTOMER

NEEDS

(What’s)

CORRELATIONS


BENCHMARKS

TARGETS & LIMITS


(How’s)





• Benchmarking information fromtechnical experts

• Comparison between you andyour competition

• How we meet the characteristics

(CTS’s)

7

3

5

41

6

2

8



COMPETITIVE

COMPARISON/

CUSTOMER

RATINGS

CONFLICTS

CUSTOMER

NEEDS

(What’s)

CORRELATIONS


BENCHMARKS

TARGETS & LIMITS


(How’s)





• Required specifications andtolerances for characteristics

• Meet and/or exceed clientneeds/wants

• Develop targets and limits• Specifications result from

technical benchmarking• Who is best in class• Levels to meet and/or exceed

expectations

7

3

5

41

6

2

8



COMPETITIVE

COMPARISON/

CUSTOMER

RATINGS

CONFLICTS

CUSTOMER

NEEDS

(What’s)

CORRELATIONS


BENCHMARKS

TARGETS & LIMITS


(How’s)




Fundsdispersed

when needed

Auto LoanDisbursement Time

Time client enters bank toreceipt of funds (hours)

< 3.4 DPMO

ClientNeed

CTS

Product/Service

Characteristic

Measure

Specification/

ToleranceLimit(s)

AllowableDefectRate

Target/Nominal

Value24 Hours

48 Hours

Development Specifications and Targets:Room #7

Disbursement

time





• Conflicts and synergies betweencharacteristics (CTS’s)

• House of Quality Room #8 (roof of “thehouse”)

• Roof shows relationship(s) betweenCTS’s

• Positive, negative , or no correlation• Use +, -, or a blank cell

• Identifies functions, areas, or organizations which mustcommunicate with one another

• Examples:• Conflict (-): # calls per hour and

amt. time spent with each prospect• Synergy(+): # errors per prospect

and # times prospect called for add’linfo.

7

3

5

41

6

2

8



COMPETITIVE

COMPARISON/

CUSTOMER

RATINGS

CONFLICTS

CUSTOMER

NEEDS

(What’s)

CORRELATIONS


BENCHMARKS

TARGETS & LIMITS


(How’s)




House

Of

Quality

#1

House

Of

Quality#2

House

Of

Quality

#3

House

Of

Quality

#4

CTS’ s (HOW’s)

FunctionalRequirements (HOW’s)

DesignRequirements (HOW’s)

Critical to ProcessVariables (HOW’s) F u

n c t i o n a l

R e q u i r e m e n t s

W H A T ” s )

D e s i g n

R e q u i r e m e n t s

( W H A T S

House to House Flow




Appendix 2 – For Reference OnlyDFSS Roadmap and Tollgates




ClientNeeds

T ol l g

a t e 1

T ol l g

a t e 2

T ol l g

a t e 3

T ol l g

a t e 4

T ol l g

a t e 5

• Gather needs• Translate needs to

CTS’s • Translate CTS’s to

functionalrequirements

• Assess technology• Develop plan• Assess risk

• Translate functionalrequirements todesign parameters

• Develop/evaluatedesign alternatives

• Resolve designconflicts

• Assess risk

• Flow down systemdesign to subsystems

• Design for reliability,maintainability


• Develop transfer functions

• Develop systemcapability

• Assess design gaps• Assess risk

• Run pilot• Optimize design• Verify system

capability• Assess risk

T ol l g

a t e 6

6 SigmaProcesses

ConceptualDesign

PreliminaryDesign

DetailDesign

Pilot/Prototype

Pre-Launch LaunchT

ol l g

a t e 7

Identify ValidateDesign Optimize

• Demonstrate process/ product capability


• Monitor systemcapability

• Implement design and process control plans

• Develop transition plan

DFSS methodology allows us to create designs that are six sigmawith reference to Client requirements and service deliverycapability

•Pugh Selection Matrix•TRIZ•DeBono's LateralThinking Tools•Quality FunctionDeployment•Design Scorecard•DFMEA• Axiomatic Design

•Simulation Tools:SigmaFlow, iGrafx,SigmaCalc, FEA•Quality FunctionDeployment•TRIZ•Design Scorecard•DFMEA•Infrastructure ProcessMap•Standardization

•DOE•QFD•TRIZ•Simulation ToolS•Design Scorecard•ProcessVerification•DFMEA•Process FMEA•Reliability Testing

•Survey Design•Quality FunctionDeployment•Kano Diagrams•Product TechnologyRoadmap•Balanced Scorecard•MeasurementSystems Analysis

•Design of Experiments:Conjoint, ResponseSurface Methods•Design Scorecard•MeasurementSystems Analysis

•Capability Analysis•Design of Experiments:Response SurfaceMethods•Design Scorecard

•Balanced Scorecard•Design Scorecard•Statistical ProcessControl•Capability Analysis

Breakthrough Design Roadmap




Identify Phase

Identify

Identifycustomer/market

needs

Translatecustomer/market

CTQs intofunctional

requirements

Identify/assessavailable

technology

Business casedevelopment

Translatecustomer/market needs into

CTQs

Developtechnology

Tollgate 1




Tollgate #1

Deliverables Tools • Project Charter • Project Plan• Change Plot• Gather Client Needs Surveys, Interviews• Translate Needs to CTS QFD (House #1)• Translate CTS to Functional QFD (House #2)

Requirements• Assess Technology Technology

Roadmap• Technology Benchmark Technology

Roadmap• Competitive Benchmark• Financial Analysis ROI, DCRR• Project Risk Assessment




Design Phase

Design

DevelopConceptual

Designs

Identify PreliminaryDesign (includes

subsystem design)

Develop DetailedDesign (Develop

transfer functions;requirements

flowdown; determine

tolerances capabilityflow up; processvariables)

Top Level Design Parameters

For eachfunctional

requirement,identify design

parameters

Tollgate 4

Tollgate 3

Tollgate 2




Tollgate #2

Deliverables Tools • Concurrent Enterprise Plan• Potential Solutions Identified TRIZ• Solutions Evaluation Pugh Matrix• Design FMEA• Design Scorecard• Change Plot• Project Risk Assessment

Design




Tollgate #3

Deliverables Tools • Systems to Sub-system Flow

Down• Translate Functional Require- QFD (House #3)

ments into Design Requirements• Axiomatic Design• Mistake Proof Design• Procurement Strategies• Change Plot• Project Risk Assessment




Tollgate #4

Deliverables Tools • Experimentation DOE• Parameter Design• Transfer Functions Established• Requirements Flow Down• Capability Flow Up• Optimize Design

• Statistical Tolerances Established• Change Plot• Project Risk Assessment

Design




Optimize and Validate Phases

Optimize

Validate

Pilot/ Prototyping(Optimize design to

minimize sensitivity of CTQs to process

parameters; feasibility)

Reduction topractice

Implementlaunch

DVP Tollgate

Validate System Design

Tollgate 6

Tollgate 7

Tollgate 5




Tollgate #5

Deliverables Tools • Create Test Environment• Run Pilot• Optimize Design• Capability Flow Up• Change Plot• Project Risk Assessment




Tollgate #6

Deliverables Tools • Tolerance Design• Mistake Proof Service Delivery Poke Yoke• Capability Flow Up• Change Plot• Project Risk Assessment

Optimize/Validate



Tollgate #7

Deliverables Tools • Implement Design Plans• Implement Control Plans• Transition plans• Capability Flow Up

Validate

Documents

4 Growth Overview