Sec 02 Dmaic Steps

PowerPoint PresentationSection 2 / Slide No : *
The DMAIC Improvement Process
Section 2 / Slide No : *
Put them into practice (i.e. Know-how)
Concepts
Process
Techniques
The DMAIC Process Steps
MEASURE
3
4
10
© Copyright Pera Neville Clarke Pte Ltd, 2004 Issue : 1.0/09-04
1. Identify Focus Areas
Focus limited resources on important areas.
The effort involves a working session with the participation of the management team (the sponsors) where they examine the various possible areas that impact the business results and, with the use of a structured collective decision making process, decide the critical areas to focus the improvement efforts.
Examples of focus areas include line reject rate, on-time shipment, capacity utilization, inventory turns, response time and warranty costs/customer complaints.
Market Success Rate
A tool that is commonly used for this purpose is the Tree Diagram
[Supplier – Inputs – Process – Outputs – Customers]
Alternatively, the SIPOC diagram is used. SIPOC is more suitable for service organizations or supporting departments.
Suppliers
Inputs
Process
Outputs
Customers
Recruiting
Project Charters
Performance Gap
Project A
Project B
Project G
Project D
Project E
Project F
Project C
Project H
Develop the Project Charter
The project sponsor (usually with the help of his/her people) defines the problem statement, decides the improvement goal, and selects the project team members.
Project charter helps to make sure that due thoughts are given to make sure that the project is properly set up.
The project should be scoped at the process level where specific actions can be taken to realize the improvement in business results.
The outcome of this step is an approved project charter.
Project Charter
A Project charter is a document created at the start of a project to assign the project to the team.
It is an important tool for getting commitments from the team members.
A Team Charter should specify the following:
Project title and the project scope.
The business case and problem/opportunity statement.
The goal statement.
Estimated financial benefits.
Example of Project Charter
To reduce late payments
Estimated 30% of payments are received later than the credit term of 60 days
To reduce late payment percentage to less than 5%
Improve cash flow. Reduce bad debt risks
Account receivable process
There should be an appointed member (sponsor) of
top management
Team members are to be selected based on the problem statement and the scope involved.
Team members must have good working knowledge of the subject matter.
Rule of thumb for the number of team members is 5 to 7 persons.
The team leader should be trained in:
Problem solving process steps
Right project.
Measure: Determine Process Capability
5. Determine process capability
Why is it necessary to measure the process output?
To quantify the current performance level.
To objectively evaluate the gap.
To aid in the analysis of key input factors.
To verify the effectiveness of the improvement solutions.
Input
Process
Output
Defect per unit / Error per unit / Callback per unit
Process capability ratio (Cpk, Ppk)
Cycle time / Turn- around-time / Service response time / Queue time
On time delivery / Span (Order to Delivery)
Proportion of value adding activities
Availability of personnel / material / facility
4. Develop Data Collection Plan
To make sure the data collected are reliable and accurately describes the process output characteristics.
Components of Data Collection Plan:
Definition of process output measures
Data collection method
Process output measure
Cycle time (day) from the date of invoice issued to the date when the payment is received
Data Collection Method
Sampling Time Frame
Sample Size
60 invoices
Sampling Method
Random Samples
5. Determine Process Capability
Gather process output data according to the data collection plan.
Translate the raw data into useful process information:
Use histogram to show the variation in process output variable.
Estimate the process average and process variation using descriptive statistics.
Compute the process capability figure.
Mean is 57 days.
(Output From Minitab)
Example: Process Capability Study
Analyze: Investigate Root Causes
7. Decide the vital few suspected causes
8. Verify the causes
List all possible factors causing the process performance gap.
Team leader to facilitate the brainstorming process.
Leverage collective experiences of the team members.
Search thoroughly, do not leave out any possible cause.
Depending on the situation, choose the most suitable tool for this purpose. (Cause and Effect diagram, Process FMEA, Process Mapping)
Identify possible causes using brainstorming and organize the information using cause and effect diagram
Money Amount In Invoice
Don’t Match P.O.
Product Quality Problem
Relationship With Customers
Wrong Amount
7. Decide the Vital Few Suspected Causes
Use structured discussion and team’s collective knowledge to narrow the possible causes down to a few most probable causes.
Team leader to facilitate this narrowing process. It is important for the team to gain a common understanding on the possible causes before starting the narrowing process.
Choose the most suitable tool for this purpose. (Multi-voting, nominal group technique, selection matrix)
8. Verify the Causes
Make sure the key suspect are actually root causes.
Discuss and decide how to confirm the key suspects.
The methods commonly used for this purpose include:
- Historical data analysis.
- Design of Experiments.
Using Dot Plot to verify whether error is a root cause
Using Box Plot to verify whether location is a root cause
Example: Hypothesis Testing
Ho: There is no difference in the means of payment days among the different locations.
Ha: At least one of the means is different.
Cannot dismiss Ho
Using Box Plot to verify whether payment method is a root cause
Use ANOVA to confirm payment method is a root cause
Dismiss Ho, accept Ha.
Using Scatter Diagram, it appears that money amount does not effect days payment
Using Scatter Diagram with stratifications, it appears that money amount has some correlation with days payment
Using Multiple Regression to confirm the effect of money amount on days payment
Improve: Find Effective Solutions
10. Confirm Improvement Solutions
Identify various possible solutions and evaluate their effectiveness in solving the problem.
With the root causes identified, brainstorm all possible improvement solutions. The first solution is usually not the best solution.
Without any constraints, generate a list of possible solutions. Choose the most suitable creativity technique for this purpose.
Evaluate and select the best improvement solution.
Challenging conventional thinking / assumptions:
Do not think Think
- It can’t be done. - How to get it done.
- It will not work. - Try and make it work.
- They’ll never buy it. - We can convince them.
- We’ve always done it this way. - Let’s find a better way.
- We’ve never tried this before. - If we don’t try, we won’t know.
Select Best Solution
Contribute $xx to financial benefits.
- Restraining Forces
An estimated xx hrs of administrative efforts.
An estimated total cost of $xx will be incurred by the company
Using Force Field Analysis to evaluate in detail the idea of giving rebate if customers pay on time for those invoices with high dollar values.
Purpose: Make sure solutions are effective before standardization.
Decide and develop an action plan to check solution effectiveness.
Collect initial data to make sure the solutions are effective:
- Check data distribution, compute the descriptive statistics, calculate new process capability.
Perform potential risk assessment and stakeholder analysis to anticipate and address possible problems when implementing the solutions.
Mean is 42 days.
Process Capability: Defect per million is 1,260
invoicing process.
customer to use payment
method other than check.
a rebate scheme
Establish Action Plan
Control: Sustain the Improvements
11. Standardize Improvement Plan
12. Close the Project
Purpose: Incorporate improvement solutions into process control system.
Transfer the solutions from the team to the process owners.
Revise process control system / documents (control plan, procedure, work instruction, etc.)
Train / brief staff on the revised process control system.
Implement a continual monitoring system.
Get Champion’s approval to close the project.
Project can be closed when:
- The project phases have been completed.
- Project documentation have been completed.
- Improvement plan documented.
Share the lessons learned and knowledge gained with other related processes / areas.
Problem Statement :
The time taken from the moment production is completed to delivery is 2 days. Some urgent orders require products to be delivered in 1 day.
Goal Statement :
Project scope:
Measure: Determine Process Capability
Map the ‘As-Is’ Process
Common process mapping methods:
Relationship map
Validate the maps created by walking through the process and collect the necessary data.
Orders Fulfillment Process Cross Functional Map (As-Is)
8 9 10 11 12 1 2 3 4 5 6
QA Technician
Visual Inspector
8 9 10 11 12 1 2 3 4 5 6
Sales Officer
Sales Manager
Store Supervisor
QA Clerk
Issue D.I.
Pick Lots
Prepare Shipments
Approve Test Cert
QA Manager
Sales Office
Store Office
Visual Inspection
Quantity Accepted
Analyze: Investigate Root Causes
Examine the ‘As-Is’ Process
Examples of process flaws:
Analysis Summary
A] Waiting
- Visual inspection will not start unless laboratory tests have been completed.
- Store supervisor waits for the test certificates before he can prepare the shipment.
B] Duplications
- Packers record product names, lot numbers and quantities and send these information to store. Store supervisor keys in the same information into the finished goods inventory system.
C] Non-value Adding Activities
Improve: Find Effective Solutions
B] Reduce non-value adding activities & duplications.
Packers key in product information into finished goods inventory system.
Reduce document movements by installing a computerized workflow system.
Empower QA technicians to decide lot acceptance based on the specification.
A useful guide for redesigning work processes:
Organize work around results, not tasks.
Work parallel instead of sequentially.
Capture data only one time – when it is first created.
Allow decision where the work is performed.
Incorporate controls into information processing.
Make people who use a process do the work.
Treat geographical dispersed resources as one.
Computerized workflow system.
Control: Sustain the Improvement
Implement the ‘should-be’ process
8 9 10 11 12 1 2 3 4 5 6
QA Technician
Visual Inspector
Prepare Shipment
Deliver Shipment
Approve D.O.
Possible CausesIreneMaryJohnPeterAdelineScore
12Relationship With CustomersX1

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Sec 02 Dmaic Steps