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Agenda
Pass out questionnaire and provide for time to review
My lean six sigma journey
What is Six Sigma
Integrating Lean and Six Sigma
Why are some programs successful and others failures?
Six sigma overview presentation with input from attendees
Questions
3
Objectives
Recalling your Statistics Past
Gain understanding of the Six Sigma Improvement Program Attributes that Drive Success and Failure
Provide Introduction and Familiarization to Six Sigma Terminology, Methodology and Tools Utilized during Project Lifecycle.
Brief discussion of Problem Solving Methods/Tools
Provide Introduction and Familiarization to Six Sigma Terminology, Methodology and Tools Utilized during Project Lifecycle.
Feedback and Dialogue with Attendees
4
Why Does Six Sigma Fail?
Maybe it’s Our Statistics Past: Questions A-E
A. How many of you took a course in statistics?
B. Did you enjoy it?
C. Do you remember anything about the course?
D. Was it taught in an applied manner?
E. Did you do exercises to reinforce principles such as capability, correlation, regression, etc.?
5
My lean six sigma journey 19+ years at Ingersoll-Rand variety of positions throughout the organization
1st Wave of Black Belt and Master Black Belt training conducted by Six Sigma Qualtec
Left industry for full-time teaching at Lehigh in 2000 and taught for 4 years
Applied to Penn State’s PhD Program in Industrial Engineering to further research in Supplier Selection Process
Full-time academic and financial support by spouse 2004-2006
Encouraged to get off the gravy train and get back to work
Engaged with 1st clients including Crayola and Siemens Power Generation for Six Sigma Training, Program and Project Support
Engaged with MANTEC.org to service clients in south central PA
Trained 30+ Waves of Green and Black Belts
Supported 150+ project with approximately $30 Million in Savings
• CBR Industries, Carlisle, PA
• ECORE International, Lancaster, PA
• EMCON Technologies (World-Wide Tier 1 Auto Parts Supplier purchased by Faurecia Emissions Control Technologies), Troy, Michigan
• Fenner Precision, Manheim, PA
• Fenner Drives, Manheim, PA
• Furmano’s Inc., Northumberland, PA
• GAMSE Lithographing Company, Baltimore, MD
• Glatfelter Paper Company, Spring Grove, PA
• Hertz Rental Car Company, Orlando, FL and Phoenix, AZ
• High Steel Company, Lancaster, PA
• HVAC Distributors, Mount Joy, PA
• Ignacio Gomez CIA IHM S.A., Bogota, Colombia
• InterFace Solutions, Lancaster, PA
• Librandi’s Plating Company, Middletown, PA
• Morehouse Instrument Company, York, PA
• New York Wire Company, Hanover, PA
• Packaging Corporation of America, Trexlertown, PA
• Philips Hadco Lighting Division, Littlestown, PA
• R.H. Sheppard Company, Hanover, PA
• Siemens Medical Division, Malvern, PA
• Siemens Power Generation Division, Orlando, Florida
• Stoner Incorporated, Quarryville, PA
• Sussex Wire Inc., Easton, PA
• The Buck Company, Buck, PA
• The Crayola Company, Easton, PA
• Thermacore Inc., Lancaster, PA
• Tobyhanna Army Depot, Tobyhanna, PA
• Top Flight Incorporated, Glen Rock, PA
• Ventura Foods Inc., Chambersburg, PA
• Wire Mesh Products Inc., York, PA
Client List
6
What is this? PowerPoint Money
PowerPoint Money is
projected savings that
only exists in
presentation and cannot
be spent, saved or
utilized in any practical
manner Do Six Sigma Programs fail because they fail to
generate real savings or results. Are all the results
“stuck” in PowerPoint Slides?
7
Let’s Answer These Questions
1. Do you have problems that you are unable or are extremely difficult to solve?
2. Do you have problems that you solve over and over again without identifying and eliminating the root cause?
3. Do you have a problem solving methodology?
Six Sigma: the DMAIC Process
• Define: Establishes the business case for spending time, energy, and money towards solving a problem or improving a process. • Define the scope, severity, size of the problem (Y’s), the current performance
level, and target level after improvement.
• Includes: Who, What, When, Where, How Much, How Often for both the Current State and the Target State/Goals based on Customer Requirements.
• Measure: • Understand the process. Identify potential variables (X’s) that create the output
that is underperforming (Y’s).
• Document the current process using Process Maps, Value Stream Maps, FMEA (Failure Mode Effects Analysis)
• Hypothesize on root causes of problems- Fishbone Diagrams, XY Matrix, etc.
• Develop a plan to collect data
• Qualify measuring tools used to collect data.
• Collect data.
• Analyze:
• Study data to identify trends, patterns, variation, … root causes.
• Hypothesize solutions, test, and validate.
• Repeat as necessary.
• Improve: Plan, Pilot and execute changes including
updating documentation, training, equipment
modifications/acquisitions. Setup control monitoring.
• Control: Put systems in place to monitor the process to -
• Keep process in control.
• Identify when out of control.
• Sustain the gain.
9/9/128/12/127/15/126/17/125/20/124/22/123/25/122/26/121/29/121/1/12
$5,000
$4,000
$3,000
$2,000
$1,000
$0
week
Ind
ivid
ua
l Va
lue
_X=$1,323
_X=$642
UCL=$4,593
UCL=$1,707
LB=$0 LB=$0
Stage 1 Stage 2
1
1
Project: CONTROL CHART FOR OOS $S JAN 1 2012 092312.MPJ; Worksheet: Worksheet 1; 10/1/2012
I Chart of 007 OOS by Stage thru week of 9/23/12
Six Sigma: the DMAIC Process
Six Sigma Phases and Scientific Problem Solving
Measure Validate Data Collected
Analyze
Vital Few Factors For Root Cause
of Problem
Improve Identify appropriate operating
conditions
Breakthrough
Strategy
Characterization
Control
Sustain - Insure Results to Bottom Line
Optimization
Define Problem Statement and Charter
Six Sigma Focus- include in Project Charter
• Faster
• Cycle Time
• Better
• Defects per unit (DPU)
• Rolled Throughput Yield (RTY)
• Cheaper
• Cost of Poor Quality (COPQ)
Not all projects will generate immediate
savings. There are requirements for
facilitating projects often focused on
measurement system analysis.
Project Charter Example:
6 High speed presses, located at __, running
__ parts, operated by 1 operator, 2 shifts per
day, are running at approx. 70% utilization and
65% efficiency. Each run requires 1 operator,
and each run requires 1 setup person. Target
is 90% Utilization and 85% efficiency. Poor
Utilization impact cost $500k in lost revenue
and $75k in Contribution Margin. Poor
Efficiency impact cost $1.3M in lost revenue
and $250k in Contribution Margin
12
Six Sigma Focus: Create Measurement
System, Move the Mean, Reduce Variability
• Six Sigma is a prescribed method that measures and characterizes
processes in order to make improvements
• Improvements can be in measuring the process- creating a
Measurement System via Measurement System Analysis.
• Moving the mean
• Reducing variation
Shift the Mean Reduce Variation
Center on Target with
Minimum Variation!
13
Six Sigma Variability: the Irony
• There are no national certifications for Six Sigma certification
• The American Society of Quality has recommended topics for
training levels such as Green Belt, Black Belt, etc. and
administers a test on the material
• A google search of Six Sigma Training generates 17,000,000 hits
• A google search of Six Sigma Certifications generates 28,000,00
hits
Do Six Sigma Programs fail because
training programs are focused on certifying
participants or counting the number of
certified belts versus applying to tools to
solve a business problem?
Six Sigma & Quality Engineering History
• 1920’s Walter Shewhart of Bell Labs pioneers the use of statistics to analyze product and process performance
• 1940-1993 W. Edwards Deming and Joseph Juran, students of Shewhart, establish the principles of TQM and teach these concepts to companies around the world, initially in the US, later in Japan and the rest of the world
• 1986 emergence of Six Sigma as an improvement model at Motorola
• 1988 Motorola wins Malcolm Baldrige National Quality Award
• 1990 Motorola, IBM, TI, Xerox, etc. adopt a Six Sigma model
• 1995 forward AlliedSignal, GE, Coca-Cola, FedEx, etc. popularize the approach as a management method
• 1997 forward Six Sigma spans all industries and sectors:
• Manufacturing, Service, Healthcare, Hospitality, Banking, Education
• Other retail firms implementing Six Sigma include:
• Federated Department Stores, Target, Gap, Wal-Mart, Home Depot, Lowe’s, Sears, etc.
15
Value Stream and Process Mapping
Pull-Based/Kanbans
Total Productive Maintenance
Visual/Data Management Integration
Standardized Work (SOP’s- Standard Operating
Procedures and SMED (Single Minute Exchange of Dies)
5 S and Cell Manufacturing
Error Proofing/Root Cause Analysis
Six Sigma Methods
Connecting Lean and Six Sigma
Improvement Programs
My preference-
apply Lean
Principles 1st in
Manufacturing
Environment
16
WHAT IT IS AND WHAT IT TAKE FOR SUCCESS
– Critical processes within an organization
– Significant inputs to the organization
– Delivery of product and service based on customer and
stakeholder requirements
• A business philosophy which demands a corporate
commitment to relentlessly and continuously meet, or
exceed customer requirements and improve profitably
• A strategic senior-management driven initiative, requiring
organizational change, that is adopted by companies
seeking “competitive advantage” in the global marketplace
• A rigorous application of the scientific method designed to
partner quantitative methods and the knowledge of
people, in order to assess and improve:
If you want to fail- ignore or don’t use Data to
Solve the Problem
"In God we trust, all others bring data.“
W. Edwards Deming
Which operator do you want running your
machines: Shift 1 or Shift 2?
18
The 6 Sigma Project Team Structure
Project Team Members
Yellow Belt
Green Belt
Black
Belt
M.B.B
Problem Solving Team
Member
Functional 6 Sigma Team
Member. Familiar with tools
Problem solver, assists Black Belt.
Working Knowledge of tools
Problem solver, Proficient with Full Set
Problem solver, Teacher, Mentor. Expert in
use of the tools
FULL TIME
COMMITMENT
20-40%
of Tools and Math
Mento
ring
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Six Sigma Implementation Model • Six Sigma places the emphasis on process
▫ By using structured team-based, data-driven processes, senior
management drive root cause problem solving methodology can
resolve business problems where they originate
▫ Problems are addressed at the root-cause level using a scientific
method for problem solving
• Summary of Attributes of a Successful Six Sigma Program
• Senior Management Drive/Support and Company Initiative
• Data Driven Problem Solving (using the new language of quality
and process performance)
• Regular Project Reviews
• Rigorous Training and Application of Tools
• Mentoring Throughout the Training and Project Support
• Implement “Quick Hits” Where Possible
• Team Based
• Rigorous Involvement of Project Champion
• Communication and Involvement of Stakeholders
“94% of failures are due to the system,
6% are due to the worker.”
“The factory offers 3% of the opportunity
for company improvement,
the rest of the business- 97%.”
Dr. W. Edwards Deming taught that by adopting
appropriate principles of management,
organizations can increase quality and
simultaneously reduce costs by reducing waste and
rework while increasing customer loyalty. The key is
to practice continual improvement and think of
manufacturing as a system, not as bits and pieces.
21
The Six Sigma DMAIC Roadmap
Six Sigma Successes
• Reduction in process upsets in chemical processing operations
• Risk reduction and cost savings from expanding sourcing from single source
• Supplier rating for quality, delivery and price (facilitating project)
• Quotation management system, cycle time reduction
• Order management system improvement reducing freight costs while increasing sales
• Line efficiency and supplier quality improvement
• Joint Supplier/Customer Design of Experiments quality improvement
• IT Server Optimization
• Cycle Count Variation Reduction
Customer/Supplier Joint Savings Model Overview
Select Critical Supplier Process for Improvement Project
Determine Key Metrics, Annual Usage,
Projected Resources, Savings and
Effective Date for Improvements 5 5 4 5 3 5 2 5 1 5 5
U S L L S L
P P M T o t a l
P P M > U S L P P M < L S L
P P M T o t a l
P P M > U S L P P M < L S L
P P M T o t a l
P P M > U S L P P M < L S L
P p k P P L
P P U P p
C p m C p k
C P L C P U C p
S t D e v ( L T ) S t D e v ( S T )
S a m p l e N M e a n
L S L T a r g e t U S L
3 0 5 4 6 9 . 6 2
2 7 3 5 8 3 . 6 6 3 1 8 8 5 . 9 6
3 1 0 0 2 7 . 8 9
2 7 6 3 0 3 . 3 4 3 3 7 2 4 . 5 5
3 0 4 0 0 0 . 0 0
2 4 8 0 0 0 . 0 0 5 6 0 0 0 . 0 0
0 . 2 0 0 . 6 2
0 . 2 0 0 . 4 1
* 0 . 2 0
0 . 6 1 0 . 2 0 0 . 4 0
8 . 1 4 4 0 5 8 . 2 5 5 8 4
1 2 5 3 0 . 0 9 7 2
1 5 . 0 0 0 0 *
3 5 . 0 0 0 0
E x p e c t e d L T P e r f o r m a n c e E x p e c t e d S T P e r f o r m a n c e O b s e r v e d P e r f o r m a n c e O v e r a l l ( L T ) C a p a b i l i t y
P o t e n t i a l ( S T ) C a p a b i l i t y
P r o c e s s D a t a S T L T
Complete Capability
Study of
Existing Process
Establish agreed upon Saving Split
Review Projected Savings, Resource/
Capital Requirements, Effective Date
for Implementation using Capability
Study following Measure Phase.
Go/No Go
Continue to Implementation with Regular
Joint Project Reviews of Key Metrics
2 5 2 0 1 5 1 0 5 S u b g r o u p 0
4 0
3 0
2 0
S a
m p l e
M e a n
X = 3 0 . 1 0
3 . 0 S L = 4 1 . 3 3
- 3 . 0 S L = 1 8 . 8 6
4 0
3 0
2 0
1 0
0
S a
m p l e
R a n g e
R = 1 9 . 4 7
3 . 0 S L = 4 1 . 1 8
- 3 . 0 S L = 0 . 0 0 0
Cycle Count Variance Reductions
Sep-13May -13Jan-13Sep-12May -12Jan-12Sep-11May -11Jan-11
1000000
500000
0
-500000
-1000000
Date
Ind
ivid
ua
l V
alu
e
_X=-148249
_X=78861
_X=29114
_X=-6961
UC L=742450
UC L=508130
UC L=260836 UC L=81518
LC L=-1038948
LC L=-350408LC L=-202609
LC L=-95440
SA P ImplementationC onfirmation Errors C y cle C ount Timing 2013
Sep-13May -13Jan-13Sep-12May -12Jan-12Sep-11May -11Jan-11
1000000
750000
500000
250000
0
Date
Mo
vin
g R
an
ge
__MR=334903
__MR=161405 __
MR=87128
UC L=1094224
UC L=527357
UC L=284671 UC L=108696
LC L=0 LC L=0 LC L=0 LC L=0
SA P ImplementationC onfirmation Errors C y cle C ount Timing 2013
__MR=33268
I-MR Chart of Cycle Count by Period
25
Belts- Full-time versus Part-time
Originally most Six Sigma deployments where
initiated with full-time Black Belts
Most current deployments are done with part-time
Green and Black Belts. The key to success-
project selection
What Is Green Belt Training?
Classroom training and “real world” application of tools: Learn and apply DMAIC tools Utilize classroom exercises to demonstrate the application of tools
Demonstrate tool application to training project: Deliver a financially measurable and significant business impact through
the application of the tools and principles Show ability to use tools beyond the training environment
Submit a final report which documents tool understanding and application in addition to process changes and financial impact
To ensure optimal knowledge transfer: In addition to classroom training, provide approximately 4 on-site support
sessions lasting approximately 2 hours between each session and for several months following the completion of the GB training depending on candidate progress
Access via telephone or e-mail to answer questions
A course on the use of a process-focus to manage the business
through the Six Sigma problem-solving approach of Define,
Measure, Analyze, Improve, and Control (DMAIC)
GB Certification Requirements
Class Attendance
Participation in Classroom and Group Exercises
Certification project approved by Senior Management and
Instructor
Successful completion of open-notes tests at end of
training weeks
Monthly project progress reviews required until project
termination or successful project completion
Submission of final written project report detailing steps
completed leading to successful project completion
Six Sigma Overview
Problem Definition
SIPOC (Supplier, Input, Process, Output, Customer) Diagram
Voice of the Customer
Team Facilitation
Process Mapping
Fishbone or Ishikawa Diagram
Cause and Effect or X-Y Matrix
Failure Mode & Effects Analysis
Rolled Throughput Yield (and Defects per Unit)
Probability
Introduction to Basic Statistics
Basic Tools (Intro. to Minitab and Graphical Methods/Intro. To Multi-Variable Methods)
Confidence Intervals
Intro. to Hypothesis Testing
Process Capability Analysis
Measurement System Analysis (Gage R&R and Attribute R&R)
Data Collection Plan
Project Planning
* Topic Areas in BOLD Type are part of American Society of Quality Green Belt Course Coverage Areas.
Week 1 Training Topic Areas
Define Phase Topics
Measure Phase Topics
* Topic Areas in BOLD Type are part of American Society of Quality Green Belt Course Coverage Areas.
Week 2 Training Topic Areas
Analyze Phase Topics
Improve and Control Phase Topics
• Candidate Project Reviews • Graphical Methods and Multi-Variable Methods
(Process Visualization) • Central Limit Theory and Intro. to Transforming Non-
Normal Data • Hypothesis Testing for Continuous and Attribute Data • Introduction to Design of Experiments (started
in Intro. to Multi-Variable Methods) • Randomized Blocks • Full Factorial Experiments • Intro. to Analysis of Variance
• Correlation and Regression
• Power and Sample Size
• Control Planning and Application
• Pilot Solution Planning, Process Standardization and Risk
Assessment (FMEA)
• Mistake Proofing
• Statistical Process Control
• Project Planning and Management
Shameless Advertisements
• April 4, 2014- Part I: Center for Value Chain Research
(CVCR) Six Sigma Case Study- Lean Six Sigma at
Crayola (4 hour morning session)
• April 4-5, 2014- Part II: Champion or Executive
Training (remainder of day April 4 and 8AM-2PM at
Lehigh on April 5)
• Green and Black Belt Training Classes conducted at
MANTEC (MANTEC.org) in York, PA
Thank You and Additional
Questions
