6 S Tools Overview

Six Sigma Tools

SIX SIGMADMAIC Methodology & Tools

DESIGNED & CREATED

By Rosa Conti

OCTOBER 2008

DMAIC = Define, Measure, Analyze, Improve & Control

It is: A process for continuous improvementSystematicScientificFact based

This closed‐loop process eliminates unproductive steps, often focuses on new measurements and applies technology for improvement.

Definition: DMAIC

http://www.isixsigma.com/

DefineProject CharterSIPOC / Stakeholder AnalysisAs‐Is Process MapQVA – Qualitative (Value‐Added) AnalysisVOC/VOB to CCR Translation

MeasureInput, Process & Output IndicatorsData Collection Plan Baseline Performance of CCR Control ChartBaseline Sigma CalculationMeasurement System Analysis: Gage R & R

AnalyzeProcess Stratification – Using Pareto AnalysisPotential Root Causes (Fishbone)Sampling of Statistical TestsThe 5S’s (LEAN DMAIC Tool)

ImproveBrainstorming TechniquesSolution Selection MatrixTo‐Be ‘Improved’ Process Map FMEA / Risks for Improved ProcessActivity Schedule WorksheetDrivers & Barriers

ControlProcess Control SystemBaseline & Improved Performance of CCR (Control Chart) Improved Sigma CalculationFinancial ImpactMulti‐Generation Plan

Index of DMAIC Tools


TOLLGATE PURPOSE

• To develop a team charter.

• To define the customer(s) and their requirement(s).

• To map the business process to be improved.

Define Measure Analyze Improve Control

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Define – Project Charter

Business Case Opportunity Statement

• Why is this project worth doing?

• Why is it important to do now?

• What are the consequences of not doing this project?

• What is wrong, not working & not meeting the customer’s needs?

• How extensive is the problem?

• What & where do the problems occur?

• What is the impact “pain” on our customers?

• What is the impact of the problem on our business?

• What is the impact of the problem on our employees?

• If we fix the “pain,” what do we stand to gain?

• What is the ball park potential value of this project?

Goal Statement Scope

• What is to be accomplished?

• What specific parameters will be measured?

• What will be the tangible, “hard” deliverables/results?

• What will be the intangible, “soft” deliverables/results?

• What will be the timeline for delivery of results?

• What is the operational definition of the output (“Y”) & the defect?

• What is the process START & END points?

• What components of the business are included?

• What components of the business are not included?

• What (if any) is outside the project boundaries?

• What constraints must the team work under?

Project Plan / Timeline Team Members

This area identifies the key milestones (Tollgates) in the project:

Milestones Planned Dates Actual Dates

Define xx‐xx‐xx xx‐xx‐xx

Measure xx‐xx‐xx xx‐xx‐xx

Analyze xx‐xx‐xx xx‐xx‐xx

Improve xx‐xx‐xx xx‐xx‐xx

Control xx‐xx‐xx xx‐xx‐xx

Assigning responsibilities and roles mitigates the possibility of misunderstanding or miscommunication.

Name Role Department

GB/BB

Champion/Sponsor

Master Black Belt

Finance Rep

SME

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Define – Project Charter

Business Case Opportunity Statement

• Why is this project worth doing?

• Why is it important to do now?

• What are the consequences of not doing this project?

• What is wrong, not working & not meeting the customer’s needs?

• How extensive is the problem?

• What & where do the problems occur?

• What is the impact “pain” on our customers?

• What is the impact of the problem on our business?

• What is the impact of the problem on our employees?

• If we fix the “pain,” what do we stand to gain?

• What is the ball park potential value of this project?

Goal Statement Scope

• What is to be accomplished?

• What specific parameters will be measured?

• What will be the tangible, “hard” deliverables/results?

• What will be the intangible, “soft” deliverables/results?

• What will be the timeline for delivery of results?

• What is the operational definition of the output (“Y”) & the defect?

• What is the process START & END points?

• What components of the business is included?

• What components of the business is not included?

• What (if any) is outside the project boundaries?

• What constraints must the team work under?

Project Plan / Timeline Team Members

This area identifies the key milestones Tollgates in the project:

Milestones Dates__

Define xx‐xx‐xx

Measure xx‐xx‐xx

Analyze xx‐xx‐xx

Improve xx‐xx‐xx

Control xx‐xx‐xx

Assigning responsibilities and roles mitigates the possibility of misunderstanding or miscommunication.

Name Role Business Representing

GB/BB

Champion

Black Belt

SME

SME

The Goal should be SMART:

SpecificMeasurableAttainableRelevantTime bound

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Define – SIPOC / Stakeholder Analysis

Suppliers Inputs Outputs

Documents, information, parts, phone calls, products, completed services, etc.

Customers

Who supplies the Inputs?

Raw materials, information, specifications, SOPs, etc.

Who receives these Outputs?

Classify as ‘Internal’or ‘External’customer

START BoundaryWhere the process begins (start of Scope)

Process

END BoundaryWhere the process ends (stop of Scope)

Step 1 Step 2 Step 3 Step 4 Step 5

High‐Level steps of the process

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Define – As Is Process MapAlso known as a Functional Deployment Map (FDM)

High Level

Process StepsFunction 1 Function 2 Function 3 Function 4 Function 5

Step 1

Step 2

Step 3

Action 1.1Start

Action 1.2

Action 1.3

Action 1.4 Y/N

Action 2.1 Action 2.2

END

• Displays the steps depicted in a process, in sequential order• Shows where each step is performed• Shows who is involved

Yes

No

Action 1.5

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Define – Qualitative Value‐Added Analysis (QVA)

Name of Process

Customer

Value‐Added

You want to Maximize/Leverage

Operational

Value‐Added

You want to Minimize

Non‐Value‐Added

You want to Eliminate

Activity

• Customer recognizes the value

• Customer will pay for it

• Changes the product or service towards something the customer expects

• Transforms the product/service closer to completion

• Done right the first time

• Required to sustain the ability to perform Customer Value‐Added activities

• Required by contract or other laws & regulations

• Required for health, safety, environmental or personnel development reasons

• Customer does not recognize the value

• Customer will not pay for it

• Does not change the product/service towards something the customer expects (wait steps,, inspection, moves)

• Rework: not doing something right the first time

Task 1

Task 2

Task 3

Task 4

Task 5

• QVA is a tool to analyze the process to identify what is important to the customer• Distinguishes between Customer V‐Adds, Operational V‐Adds & Non Value‐Added Steps• Identifies opportunities to improve the process flow with Quick Wins• Creates a communication vehicle

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Define – Qualitative Value‐Added Analysis (QVA)

Name of Process

Customer

Value‐Added

You want to Maximize/Leverage

Operational

Value‐Added

You want to Minimize

Non‐Value‐Added

You want to Eliminate

Activity

• Customer recognizes the value

• Customer will pay for it

• Changes the product or service towards something the customer expects

• Transforms the product/service closer to completion

• Done right the first time

• Required to sustain the ability to perform Customer Value‐Added activities

• Required by contract or other laws & regulations

• Required for health, safety, environmental or personnel development reasons

• Customer does not recognize the value

• Customer will not pay for it

• Does not change the product/service towards something the customer expects (wait steps,, inspection, moves)

• Rework: not doing something right the first time

Task 1

Task 2

Task 3

Task 4

Task 5

• QVA is a tool to analyze the process to identify what is important to the customer• Distinguishes between Customer V‐Adds, Operational V‐Adds & Non Value‐Added Steps• Identifies opportunities to improve the process flow with Quick Wins• Creates a communication vehicle

QUICK WIN process changes should be:

Easy to implementFast to implementCheap to implementWithin your span of controlReversible

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Define – VOC/VOB to CCR Translation

The Voice of the Customer/Business tells us what is important, their needs/wants,

how we are doing against these measures and how/where we can improve

SOURCES FOR ACQUIRING VOICE OF THE CUSTOMER/BUSINESS (VOC/VOB)

Internal & External Data

•Existing Company Info

• Industry Experts

• Secondary Data

• Competitors

Listening Post

• Complaints

• Customer Service Reps

• Sales Reps

• Internal Departments

Research Methods

• Interviews

• Focus Groups

• Surveys

• Observations

Every design feature promised is built into the package. The software is fully operational on the customer’s existing system.

The software does what the vendor said it would do

“This software package doesn’t do squat.”

Customer reaches the correct person the first time within 30 seconds

Wants to talk to the right person quickly“I’m always on hold or end up talking to the wrong person.”

WHAT: The specific, precise and measurable expectation which a customer has regarding a product or service

HOW: Restate the issue or concern in measurable terms. This is not a solution but a measure of what the customer wants

WHAT: Statement describes the primary issue a customer may have with the product or service

HOW: Probe and clarify what the customer is really trying to convey

WHAT: Actual customer statements and comments which reflect their perception

HOW: Form a single statement that best represents the VOC/VOB

CCRKey Customer IssueVOICE OF THE CUSTOMER/BUSINESS

HOW TO TRANSLATE VOC/VOB to CCRs

This tool translates the VOC/VOB into specific measurable requirements known as CCRs (Critical Customer Requirements)

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TOLLGATE PURPOSE

• To set operational definitions for all data that are collected.

• To measure and understand baseline performance of the current process.


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Measure – Input, Process & Output Indicators

INPUT / PROCESS

OUTPUT

# of open purchase orders

# of open production orders

# of forecasted customer orders

by month

•# of MRP action messages (Order, Cancel, Expedite,

Defer, etc.)

Finished Goods / WIP / Raw Material On Hand Inventory

16

Finished Goods Production Schedule

Open Customer Orders

WIP / Raw Material On Order Inventory

TOTAL SCORE 20 30 16

Blank

Strong Relationship (9)

Medium Relationship (3)

Weak Relationship (1)

No Relationship (0)

Illustrates the relationship between the team’s Input & Process Indicators to the Output Indicators.

INPUT INDICATORS – Measures that evaluate the degree to which the inputs to a process (provided by suppliers) are consistent with what the process needs to efficiently and effectively convert into customer‐satisfying outputs.

PROCESS INDICATORS – Measures that evaluate the effectiveness, efficiency and quality of the transformation processes – the steps and activities used to convert inputs into customer‐satisfying outputs.

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Measure – Input, Process & Output Indicators

INPUT / PROCESS

OUTPUT

# of open purchase orders

# of open production orders

# of forecasted customer orders

by month

•# of MRP action messages (Order, Cancel, Expedite,

Defer, etc.)

Finished Goods / WIP / Raw Material On Hand Inventory

16

Finished Goods Production Schedule

Open Customer Orders

WIP / Raw Material On Order Inventory

TOTAL SCORE 20 30 16

Blank

Strong Relationship (9)

Medium Relationship (3)

Weak Relationship (1)

No Relationship (0)

OUTPUT INDICATORS – Measures that evaluate dimensions of the output – may focus on the performance of the business as well as that associated with the delivery of services and productsto customers.

Illustrates the relationship between the team’s Input & Process Indicators to the Output Indicators.

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Measure – Data Collection Plan

Output Indicator / Performance Measure

Operational Definition

Data Source

and Location

Sample Size

Who Will Collect the Data?

When Will the Data be Collected?

How Will the Data be Collected?

Stratification Factors: Other Data that should be collected

Randomly selected from the prior month

• Type of Loan

• Amount of Loan

• Dealer

• Type of Application

• Decision Method

During the 1st

week of the next month

Loan processing cycle time of a loan

START:

Incoming loan application fax date/time stamp

STOP:

Outgoing decision letter fax date/time stamp

Loan Rep

fax center in Tampa, FL

289 Team Loan Processing

Clerk(s)

Sample Data Collection Plan for Loan Application Process

Stratification factorscan give you cluesabout causal factors!

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-5

0

5

10

15

20

TIME / SEQUENCE

Measure – Baseline Performance of CCR Control Chart

UCLUpper Control Limit

Common CauseVariation

LCLLower Control Limit

CONTROL CHARTS • Help manage/monitor variation; provide easy‐to‐understand visual indicator of process performance• Requires 3 lines: Solid middle line represents the mean, and the UCL and LCL lines are set at +/‐ 3 standard deviations• The purpose of this chart is to:A. Help understand the type of variation; common cause or special cause?B. Minimize the times you think there is a problem but there is not, as well as the times there IS a problem and you are unaware of itC. Create an analysis and communication vehicle

Special Cause Variation

Common Cause is what you are trying to minimize

XMean

OUTP

UT INDICATO

R VALU

ES

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-5

0

5

10

15

20

TIME / SEQUENCE



OUTP

UT INDICATO

R VALU

ESMeasure – Baseline Performance of CCR Control Chart





XMean

Just because a process is stable, or in statistical control, does not mean that its results are satisfactory. A process may be very consistent, day in and day out but producing items that are nowhere near specification limits. There may be opportunity to reduce the MEAN & the Variation.

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-5

0

5

10

15

20

TIME / SEQUENCE



OUTP

UT INDICATO

R VALU

ESMeasure – Baseline Performance of CCR Control Chart





XMean

COMMON CAUSE variation is due to the design of the business process & all factors that collectively influence the process results or the way the process is managed.

SPECIAL CAUSE variation is not part of the overall system & is often called an Assignable Cause – which comes from influences such as a person, machine, procedure or external event.

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Measure – Baseline Sigma Calculation

DPMO: Defects Per Million Opportunities

It is the average number of defects per unit observed during an average production run … divided by the number of opportunities to make a defect on the product under study during that run … normalized to one million.

The equation is: DN x O X 1M

D = total number of defects counted in the sample; a defect defined as failure to meet a CCR

N = number of units of products or service

O = number of opportunities per unit of productor service for a customer defect to occur

M = million

What is DPMO?

Sigma is the measure of variability.The less variability, the higher the Sigma.

Z‐Score Used with CONTINUOUS DataUsed with DISCRETE Data

s =1.2 minutes

6.8 minutes 10 minutes0

CCR Z10 = x—xs

Z10 = 10—6.81.2

Z10 = 2.67

X

Credit Card Application Processing Time

Cumulative Probability of Yield

Z‐SCORE: A measure of the distance in standard deviations of a sample from the mean.

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Measure – Measurement System Analysis: Gage R & R

Gage R & R is a method to identify the Measurement Error caused by measurement systems.

GAGE REPEATABILITYRepeated examination

by the same individual,

using the same gage (measurement

system), and same parts.

Since the part does not change, any

change in the measurements must be due

to changes in the measurement system.

GAGE REPRODUCIBILTYRepeated examination

by others,

using the same gage and same parts, that

compares results against an expert’s results.

Since the part does not change, any change

in the measurements must be due to

changes in the people.

• Gage R&Rs can prevent measurement errors prior to conducting process capability study, control chart and product inspection.• Can be used to verify the measurement capability of new measurement tools.• Can be used to compare gage accuracy and measurement capability of different types of measurement tools.• Can be used to verify gage feasibility.• Gives basic information to analyze process capability and to investigate process variation.

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TOLLGATE PURPOSE

• To analyze the data and the process to determine root causes and

opportunities for improvement.

• To finalize all problem statements through root cause validation.


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Analyze – Process Stratification: Using Pareto Analysis

PARETO CHARTS:• 80/20 Rule: Approximately 20% of the causes are producing 80% of the defects

• Identifies key problem areas

• Validate cause and effect results

• Help to determine a Focused Problem Statement

Customer Complaints

50.0

30.0

20.0

10.0 10.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Shipping Installation Delivery Clerical Misc.

Num

ber of Com

plaints

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Cum

ulat

ive

%

A Pareto Stratificationfurther drillsdown to identify

the causes of SHIPPING complaints

Shipping is 85% of all Customer Complaints

Shipping Complaints

25

10

5 5 5

0

10

20

30

40

50

60

Crushed Wrong Quantity Moisture Misc.

Num

ber of Com

plaints

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Cum

ulat

ive

%

Crushed shipments is 45% the reason for Shipping Complaints

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Analyze – Process Stratification: Using Pareto Analysis

Customer Complaints

50.0

30.0

20.0

10.0 10.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Shipping Installation Delivery Clerical Misc.

Num

ber of Com

plaints

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Cum

ulat

ive

%

Shipping is 85% of all Customer Complaints

Shipping Complaints

25

10

5 5 5

0

10

20

30

40

50

60

Crushed Wrong Quantity Moisture Misc.

Num

ber of Com

plaints

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Cum

ulat

ive

%

Crushed shipments is 45% the reason for Shipping Complaints

Focused Problem Statement can now be:

“Shipping complaints make up 85% of all customer complaints.

Crushed shipments are approximately45% of the reason for all Shipping complaints.”

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Analyze – Potential Root Causes (Fishbone)

FISHBONE DIAGRAM:• Is also called an Ishikawa Diagram, and Cause & Effect Diagram

• Assists in reaching a common understanding of a problem and its potential root causes/drivers

• Links sub‐causes to a single root cause

Identify theFocused ProblemStatement that asks“Why do we havethis problem?”

Determine major categories(causes) of the effect

Generic Categories are:• People• Measurements• Methods• Machines• Material• Environment

Why are peoplegetting hurt?

Materials / Equipment Environment

People Process

IMPROPER EQUIPMENT

DUST

IMPROPER LIFTING

EXCESSIVE EXTENSION CORDS

& WIRES INCONFERENCE ROOMS Limited

outlets in CRsToo many

peripheralsCost to Improve

TEMPERATURE

Walkways freeze

Dock Metal Plate Freezes = Icy

BATTERY / OIL FLUID DISCHARGE FROM

FORK TRUCKS

Roof Leaking

Aisles too narrow

Not enough WHS space

Consolidationof Facilities

Excess Inventory

EMPLOYEES DO NOT

FOLLOWSAFETY

RULES

Maintenance X get to it in time

POOR LIGHTING

REP MOVEMENTS LIFT TYPE, BEND TWIST PULL

Inventory Stacked

Walkways & Aisles not labeled

EMPLOYEES DON’T WEAR

SAFETYGLASSES

EMPLOYEESDON’T WEAR

SAFETY SHOES

Budget Constraints

Lack ofKnowledge

Improper positionuse of body

Trucks not charged

Chargers Not labeled

In a rushBatteryburns

out

EQUIPMENT SHUTS DOWN

Electrical problem

Uncomfortable

Roof was worked on

Humidity causes stacked boxes to fall over

Too hot

No A/C

Uncomfortable

SLIPS / FALLS

Wet Surfaces

H20 Cooler Leaking

Not sweepingenough

Floors werejust swept

Old InventorySitting around

Energy EfficientLighting

Placement – process moved& not under lights anymore

Notpaying

attention

Apathy

Peopleare tired

Knowledgeof

Stretch Breaks

JobReqs

Inefficient Process

Reachingfor partsStore

FSM Closer

Maximum useof space

Lack ofTraining

Lack ofKnowledge

Temps

Taking shortcuts

Tired / End of Month

RevenueActivity

(Overtime)

Employeesnot paying attentionto what

they’re doing

Too largeor too heavy

ProductDimensions

Bigger made

equipment

BoxesConsolidated

Overpack design

Weightsnot listedOn boxes Product

Vendors

Stacking too highEEs not

TrainedErgonomically

BlockedAisleways

Keep asking WHY to identify potential root causes, at least 3 to 5 times

2

3

1

1

2

3

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Analyze – Sampling of Statistical Tests

Discrete Continuous

Discrete Chi‐Square

t test

ANOVA

DOE

ContinuousLogistic

Regression

Scatter Diagram

Correlation

Regression

The type of data on hand determines which Statistical Tool / Graph should be used.

REMINDER:

DISCRETE: Categories / Buckets – (colors, male/female, defect/no defect, etc.)

CONTINUOUS: Numeric Values – (money, time, length, etc.)

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Analyze – The 5S’s

The 5S’s is a Lean Process Analysis Tool and can be applied anywhere.

5S Category Observations Actions Taken Date

SORT / SEPARATE

• Get rid of what is not needed

• Keep only necessary items at your workplace

STRAIGHTEN / ORGANIZE

• Put the workplace in order

• Everything should be easy to find and use

SHINE / CLEAN UP

• Clean the work area

• Eliminate trash

STANDARDIZE / REPEAT

• Practice, Practice, Practice

SUSTAIN / MAINTAIN

• Create disciplined procedures to create good habits

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TOLLGATE PURPOSE

• To generate, select, design, test and implement improvements.

• To document the improved process.


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Improve – Brainstorming Techniques

Methods of Brainstorming

• Verbal (popcorn method)

• Written (sticky note method)

• Both

Brainstorming Steps

• Establish Ground Rules

‐ Capture every idea

‐ Establish a Time Limit

‐Work through lulls

• Generate

• Clarify

• Organize / Categorize

The power of Brainstorming is synergy – where the total effect of team efforts is greater than the sum of the individual efforts that each team member could have made on his or her own.

• One person comes up with an idea.• The idea triggers a thought in another’s mind and the original idea is then modified.• Another picks up on the trend and builds on the idea even further.• The project ends up with an innovative idea that no one person could have devised alone.

Brainstorming looksfor Quantity, not Quality.

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Improve – Solution Selection Matrix

SOLUTION SELECTION MATRIX:• Overcomes potential solution selection bias by replacing opinions & assumptions with data and facts

• Addresses temptation to overlook minor changes in favor of large‐scale changes

• Limits outside influences favoring a preconceived solution

Potential SolutionsSigmaImpact

Time Impact

Cost‐Benefit Impact

WEIGHT (1‐5) 2 2 3

Solution A 8 8 10 62 1

Solution B 7 7 10 58 2

Solution C 7 5 10 54 3

TOTAL RANK

Sigma Impactwas thought to be 2 times as important as

morale impact.

The timing of implementationwas thought to be equally important as the Sigma Impact.

Cost was thought to be somewhat more important than Sigma & Time.

Step 1

Step 2

Step 3

Step 4

ID Weight for each Criteria

List potential solutions

Rate importance 1‐10

Tally & Rank

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Define – To‐Be ‘Improved’ Process MapAlso known as a Functional Deployment Map (FDM)

High Level

Process StepsFunction 1 Function 2 Function 3 Function 4 Function 5

Step 1

Step 2

Step 3

Action 1.1Start

Action 1.2

Action 1.3

Action 1.4 Y/N

Action 2.1 Action 2.2

END

Yes

TO BE PROCESS MAP:• Reflects the solution’s impact and changes to the process

• Evaluates where non‐value added steps can be reduced or eliminated

• Shows where value‐added steps can optimize the operation

Redraw the Process Mapwith the solution & assess the risk with the new steps

X

X

No

Action 1.5

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Improve – FMEA / Risks for Improved Process

There are 2 Types of FMEA:

PRODUCT or SERVICE DESIGN FMEAUncover problems that may result in:• Safety hazards• Malfunctions• Shortened product life or decreased service satisfaction

Ask: “How can the product or service fail?”

PROCESS FMEAUncover problems that may result in:• Safety hazards• Defects in product or service production process• Reduced process efficiency

Ask: “How can the product or service fail?”

FMEA:Examines possible product or process

failures & associated risks.

Error‐proofs the solution and/or process.

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Improve – FMEA / Risks for Improved Process

Completing the FMEA is an 11‐Step process:

1. Review the product, service or process.2. Brainstorm and group possible failure modes.3. List one or more potential effects for each failure mode.

Ask: If the failure occurs, what are the consequences?4. Assign a severity rating for each effect.5. Assign an occurrence rating for each failure cause.6. Assign a detection rating for each failure mode.7. Calculate a risk priority number (RPN) for each effect.8. Use the RPNs to select high priority failure modes.9. Plan to reduce or eliminate the risk associated with high priority.10. Carry out the plans.11. Re‐compute RPN.

RPN: Risk Priority NumberEach factor is rated on a 10‐point scale

(10 = bad)

• SEVERITY – How negative will the impact of the failure be?

• OCCURRENCE – How often is the failure expected to occur?

• DETECTION – How difficult will it be to notice that the failure has occurred?

The RPN is the product of 3 Ratings:Severity X Occurrence X Detection

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Improve – Activity Schedule Worksheet

SAMPLE ACTION PLAN

PROJECT WORKPLANS:• Coordinates & integrates all efforts across the scope of the project

• Identifies a team of individual rather than one “super‐integrator”

• Is a detailed implementation work plan that brings together virtually every element of planning into a single document

• Describes who does what and when

Also known as a Project Workplan

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Improve – Drivers & BarriersAlso known as a Force Field Analysis

DRIVERS & BARRIERS:• Helps to improve an idea and gives it a better chance of acceptance.

• Strategize strengths of potential solutions (or minimize their weaknesses) for a more effective implementation

• Subjects ideas to hard scrutiny before recommending to management.

Solutions Driving Forces Restraining Barriers

Potential Solution 1 • List all the associated driving or “positive” forces • List all the associated restraining or “negative” forces

Potential Solution 2

Potential Solution 3

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TOLLGATE PURPOSE

• To institutionalize the improvement and implement ongoing monitoring.

• To provide proof of sustained improvement and realized benefit.


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Control – Process Control & System

PROCESS CONTROL SYSTEM:• Documents the process

• Provides a vehicle for standardization and replication

• Communicates process priorities and performance standards

• Serves as a vehicle for process reporting and improvement

• Ensures financial benefits are realized from Process Improvement

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Control – Baseline & Improved Performance of CCR(Control Chart)

2

4

6

TIME / SEQUENCE

OUTP

UT INDICATO

R VALU

ES



IMPROVED CONTROL CHARTS It is important to recreate the Control Chart after Improvements have

been made, in order to show the decrease in Common Cause Variation

(and Special Cause Variation, if applicable).

XMean



ORIGINAL BASELINE

By this point, CCR Performance should be improved & can be displayed on a revised chart

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DPMO: Defects Per Million Opportunities

It is the average number of defects per unit observed during an average production run … divided by the number of opportunities to make a defect on the product under study during that run … normalized to one million.

The equation is: DN x O X 1M

D = total number of defects counted in the sample; a defect defined as failure to meet a CCR

N = number of units of products or service

O = number of opportunities per unit of productor service for a customer defect to occur

M = million

What is DPMO? Z‐Score Used with CONTINUOUS DataUsed with DISCREET Data

s =1.2 minutes

6.8 minutes 10 minutes0

CCR Z10 = x—xs

Z10 = 10—6.81.2

Z10 = 2.67

X

Credit Card Application Processing Time

Cumulative Probability of Yield

Z‐SCORE: A measure of the distance in standard: deviations of a sample from the mean.

Control – Improved Sigma Calculation

IMPROVED SIGMA CALCULATIONIt is important to recalculate the Sigma Calculation after Improvements have been made,

in order to show the decrease in defects (DPMO) and deviations (Z‐Score).

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Control – Financial Impact

FINANCIAL SAVINGS CAN BE REALIZED VIA:

DIRECT –Measurable impact on financial statements such as:

• Eliminated facilities• Reduced headcount• Recovered revenue• Reduced inventory

AVOIDANCE – Impact that cannot be seen in the financial statements such as:

• Part of a facility vacated, but not eliminated• Process improvements that do not result in

headcount reduction• Avoided having to build / purchase additional

equipment

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Control – Multi‐Generation Plan

PHASE 1 PHASE II PHASE III

Currently Underway 6‐12 Months 12+ Months

Name of Project / Description

Reduce Inventory for Business Unit # 1



Goal Statement Reduce Inventory for Business # 1 by $X, January 2009.

Reduce Inventory for Business # 2 by $X, March 2009.

Reduce Inventory for Business # 3 by $X, May 2009.

Opportunity Statement

The opportunity exists to reduce inventory to $X.



Scope(Start and End)

Start: Department A

End: Department B

Start.: Department C

End: Department D

Start: Department E

Start: Department F

Potential Project Manager

Sally Sam James

Potential Champion Michael Richard Margaret

Six Sigma Methodology

DMAIC DMAIC DMAIC

The purpose of a Multi‐Generation Plan is to develop an understanding of the capabilities or technologies that are required to accomplish the longer‐term goal.

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