12 Introduction To Six Sigma

Control Charts and Introduction to Six Sigma
Session 12: Control Charts and Introduction to Six Sigma concepts
Subhash Dixit
Control Charts - Topics of Discussion

Control Chart History Control Limits Individuals and Moving Range Charts X-bar and R Charts Subgrouping
Typical Process Metrics

Cycle times Lead times Productivity Schedule variance Budget variance Employee satisfaction Customer satisfaction Safety incidents System users (# hits) Days sales outstanding Customer service calls Request for quotes Proposal development Attrition/retention Bid win rate Transactional defects Sales orders Revenue dollars
What Whatare aresome somemetrics metricsassociated associatedwith withyour yourprojects? projects?
Control Charts
While every process displays Variation, some processes display controlled variation, while other processes display uncontrolled variation (Walter Shewhart). Controlled Variation is characterised by a stable and consistent pattern of variation over time. Associated with Common Causes. Process A shows controlled variation.
X-Bar Chart for Process A X-Bar Chart for Process A
UCL=77.20 UCL=77.20 75
X -B a rC h a rt fo rP ro ce ssB
8 0 U C L = 7 7 .2 7
Sample Mean
7 0
X= 7 0 .9 8 L C L = 6 4 .7 0
6 0
5 0
Special Causes
1 0
1 5
2 0
2 5
S a m p leN u m b e r
Sample Mean Sample Mean
75
70
X=70.91 X=70.91 70
65
65 0 0 5 5 1 0 1 0 1 5 1 5 20 20 25
LCL=64.62 LCL=64.62
Sam ple N um ber Sam ple N um ber
25
Uncontrolled Variation is characterised by variation that changes over time. Associated with Special Causes. Process B shows uncontrolled variation.
In-Statistical-Control
A process is said to be operating in a state of statistical control (or short in-statistical-control) when only sources of variation are from common causes.
Interpreting Data
Specifications may be used to define when one is in trouble with regard to the voice of the customer, specifications do nothing to describe or define the voice of the process.
It was Walter Shewhart who first gave a simple and effective way to define the voice of the process --- he called it a Control Chart. UCL LCL Time A Control Chart begins with a time series graph. A central line (X-bar) is added as a visual reference for detecting shifts or trends. (Process location). Control limits (UCL & LCL computed from the data) are placed equidistant on either side of the central line. (Process dispersion).
Types of Control Charts
Metric
Average
Control Limits
Time Types of Charts: Individuals & Moving Range Charts X-Bar & R Charts p Charts (& np Charts) c Charts (& u Charts)
Individuals Charts
Appropriate questions for Individuals and Moving Range (I and MR) Charts take the form of How does the short term variation compare to long-term variation?

Time
We are interested in: - the average of the process - the short-term variation - the long-term variation
I and MR Chart Basics

I and MR Chart
39 UCL=38.76
Individual Value
38 Mean=37.38 37
UCLX ) UCLX = = X X+ + (3 (3 mR mR /d /d2 2) = = 37.38 37.38 + + (( 3 3 0.5195 0.5195 // 1.128)= 1.128)= 38.76 38.76
36 0 10 20 30 40
LCL=35.99
LCLX ) LCLX = = X X -- (3 (3 mR mR // d d2 2) = = 37.38 37.38 -- (3 (3 0.5195 0.5195 // 1.128) 1.128) = = 35.99 35.99
Subgroup
Difference between successive INDIVIDUAL VALUES is Range value

2 111
Moving Range
UCL=1.697
UCLR UCLR = = 3.267 3.267 mR mR = = 3.267 3.267 0.5195 0.5195 = = 1.697 1.697
1 mR=0.5195 0 LCL=0
=1.128 n n= =2 2 (difference (difference of of two two measures) measures) then then d d2 2 =1.128
I and MR Chart
39 UCL=38.76
Individ ual Value
38 Mean=37.38 37
How are the control limits of the individual values derived? What comparison is being made on the Individual chart?
36 0 10 20 30 40
LCL=35.99
Subgroup
What does this indicate?

2 1 1 1 UCL=1.697
M o ving Ra nge
1 mR=0.5195 0 LCL=0
Drawing A Moving Range Chart

Solids content Moving Range 37.61 NA 37.95 0.34 37.63 0.32 37.50 0.13 37.20 0.30 37.60 0.40 36.10 1.50 37.94 1.84 36.11 1.83 37.88 1.77 37.47 0.41 38.24 0.77 37.78 0.46 37.29 0.49 36.43 0.86 37.15 0.72 37.16 0.01 37.83 0.67 37.30 0.53 37.42 0.12 37.74 0.32 37.50 0.24 37.90 0.40 37.70 0.20 36.80 0.90 37.28 0.48 37.88 0.60 37.41 0.52
Step 1: Calculate moving range. To calculate each moving range, subtract each measurement from the previous one. There will be no moving range for the first observation on the chart Moving range = Positive value of (Yn - Yn-1) Step 2: Calculate average of individuals data and average of moving range Step 3: Calculate the control limits UCLR = Upper Control Limit for Range = 3.267 (mR) UCLX = Upper Control Limit for Individuals = X + (3 mR / d2) LCLX = Lower Control Limit for Individuals = X - (3 mR / d2) Where d2 = 1.128 (for 2 samples) Step 4: Plot the data, the averages and the control limits in 2 charts Step 5: Analyse the data Averages
X X
mR mR
Table of Constants for Control Charts

X-bar R Charts N 2 3 4 5 6 7 8 9 10 20 A2 1.880 1.023 0.729 0.577 0.483 0.419 0.373 0.337 0.308 0.180 d2 1.128 1.693 2.059 2.326 2.534 2.704 2.847 2.970 3.078 3.735 D3 0.076 0.136 0.184 0.223 0.415 D4 3.267 2.574 2.282 2.114 2.004 1.924 1.864 1.816 1.777 1.585 A3 2.659 1.954 1.628 1.427 1.287 1.182 1.099 1.032 0.975 0.680 X-bar s Charts c4 0.7979 0.8862 0.9213 0.9400 0.9515 0.9594 0.9650 0.9693 0.9727 0.9869 B3 0.030 0.118 0.185 0.239 0.284 0.510 B4 3.267 2.568 2.266 2.089 1.970 1.882 1.815 1.761 1.716 1.490
Formulas for Individuals Charts
Formulas:
UCLR = 3.267 mR
UCLX = X + 3 LCLX = X 3
mR d2
mR d2
d2 = 1.128 when the moving range is based on the range between successive numbers.
Exercise - Moving Range Charts

Distance Moving Range
Step 1: Calculate moving range. To calculate each moving range, subtract each measurement from the previous one. There will be no moving range for the first observation on the chart Moving range = Positive value of (Yn - Yn-1) Step 2: Calculate average of individuals data and average of moving range Step 3: Calculate the control limits UCLR = Upper Control Limit for Range = 3.267 (mR) UCLX = Upper Control Limit for Individuals = X + (3 mR / d2) LCLX = Lower Control Limit for Individuals = X - (3 mR / d2) Where d2 = 1.128 (for 2 samples) Step 4: Plot the data, the averages and the control limits in 2 charts Step 5: Analyse the data
X X
mR mR
Averages
Chart Your Results

Moving Range Individual Value
When to Use Individual Moving Range Charts

Assist in understanding variable data when the subgroup size is one. (And in certain situations, attribute data.) Appropriate Usage Situations: I. A natural subgroup is one. When there are very few units produced relative to the opportunity for process variables (sources of variation) to change. When there is little choice due to data scarcity. II.The variation within a natural subgroup is of little concern. When within subgroup variation is unimportant in a manufacturing or engineering sense (take one measurement per natural subgroup unit). When the relative magnitude of within natural subgroup variation is small compared to between subgroup variation (as verified by a Multi-Vari study). III. When the state of process knowledge is of a meagre and unsatisfactory kind.
Individual Moving Range and Rational Subgrouping

Individual moving range charts are applied for a variety of reasons. The natural subgroup size is unknown. The amount or pedigree of the data prevents clear picture of a rational subgroup. Early in a design phase or when data is scarce, subgrouping is not yet practical. The natural subgroup needing to be assessed is not defined yet. HOWEVER, once we are able to subgroup, many new possibilities regarding insight into processes can be discovered.
Sub-grouping
The concept of subgrouping is one of the most important components of the control chart method. Shewharts principle is to organise (classify, stratify, group, etc.) data from the process in a way that ensures the greatest similarity among the data in each subgroup and the greatest difference among the data in different subgroups. The aim of rational subgrouping is to include only common causes of variation within subgroups, with all special causes of variation occurring between subgroups. The purpose of understanding the within and between variation is to determine where to work, i.e. we reduce the number of potential variables considerably when we determine the variation is within or between.
Analysing the X-Bar & R Chart

R CHART The R chart displays change in the within subgroup dispersion of the process Asks Is the variation in the measurements within subgroups consistent? Measurements within subgroup are consistent when the R Chart is in control The R Chart must be in control to draw the X-bar Chart
Analysing the X-Bar & R Chart

X-bar CHART The X-bar Chart shows change in the average value of the process Asks Is the variation between the averages of the subgroups more than that predicted by the variation within subgroup? If the X-bar Chart is in control, the variation between is smaller than the variation within If the X-bar Chart is not in control, the variation between is greater than the variation within
X-bar and R Chart - Terms

X Subgroup n X R R X UCL LCL One measurement Grouping of measurements (sample) Number of items in subgroup (sample size) Average of subgroup Range within subgroup Average Range of subgroups Average of all subgroups averages Upper Control Limit Lower Control Limit
Drawing an X bar & R Chart

1. Determine an appropriate sampling plan, sampling location, sampling frequency, and size of subgroup. 2. Take a set of readings at each specified interval of time and/or from each suspected source of variation. 3. Calculate the average and range for each subgroup. 4. Plot the data. (Both average and range) 5. After 20 or more sets of measurements, calculate the control limits for the Range chart. 6. If the range chart is not in control, take appropriate action. 7. If the Range chart is in control, calculate the control limits for the X-bar chart. 8. If the X-bar chart is not in control, take appropriate action. 9. If both charts are in control, take appropriate action.
Formulae X-bar and R Chart

Central Line for Average and Range
Control Limits for Average and Range
x1 + x 2 + K + x k 1 k x = xi = k i =1 k R1 + R 2 + K + Rk 1 k R = Ri = k i =1 k UCL x = X + A 2 R LCL x = X A 2 R
UCLR = D 4 R
LCLR = D3 R
where A2, D3 and D4 are constants based on subgroup size.
X-bar & R Chart Example

Aged Release 1 week (g/inch) OP 45 47 48 43 36 45 42 42 48 47 45 40 36 43 38 37 42 45 36 38 OI 40 42 45 50 34 48 49 47 42 50 44 34 39 42 37 40 43 36 37 39 DI 45 46 47 48 38 50 46 41 47 48 44 34 36 43 36 37 41 38 41 40 DR 49 49 49 48 38 49 51 46 48 51 45 38 40 47 38 42 45 38 40 41 Average 44.75 46.00 47.25 47.25 36.50 48.00 47.00 44.00 46.25 49.00 44.50 36.50 37.75 43.75 37.25 39.00 42.75 39.25 38.50 39.50 42.74 Xbarbar Range 9 7 4 7 4 5 9 6 6 4 1 6 4 5 2 5 4 9 5 3 5.25 Rbar
AVERAGES
X-bar & R Chart for Aged Release

Average: The sum of all the values in the subgroup divided by size of the subgroup: e.g. n = 4
50
Sample Mean
1 45
1 1
BETWEEN BETWEEN
What is your interpretation of these charts? What would you do about

UCLX=46.56 X=42.74
40 1 0 10 1 1 1 1
LCLX=38.91
UCL = X + A2 R UCLX X = X + A 2 R = = 42.74 42.74 + + 0.729 0.729 5.25 5.25 = = 46.56 46.56
35 Subgroup
20
Range: the Highest value minus the lowest value WITHIN each subgroup
UCLR=11.98
LCL = X - A2 R LCLX X = X - A 2 R = = 42.74 42.74 -- 0.729 0.729 5.25 5.25 = = 38.91 38.91 UCL = D4 R UCLR R = D 4 R = = 2.282 2.282 5.25 5.25 = = 11.98 11.98
Sample Range
10
WITHIN WITHIN
R=5.250
n n= = 4: 4: A = 0.729 A2 2 = 0.729 D = 2.282 D4 4 = 2.282
X-bar & R Chart Transactional Example

Question:
Should I work within Business Unit or between Business Unit to improve system usage?
Organization No. Users/Day Sbgrp Xbar Sbgrp Range BU 1 189 BU 1 256 BU 1 178 209.8 78 BU 1 223 BU 1 198 BU 1 215 BU 2 179 BU 2 232 BU 2 189 192.3 55 BU 2 177 BU 2 187 BU 2 190 BU 3 230 BU 3 226 BU 3 239 244.2 105 BU 3 245 BU 3 210 BU 3 315 BU 4 177 BU 4 213 BU 4 199 191.7 41 BU 4 172 BU 4 186 BU 4 203 BU 5 245 BU 5 221 BU 5 236 224.7 34 BU 5 222 BU 5 211 BU 5 213
X-bar & R Chart for # Users/Day by Business Unit

Xbar/R for No. Users/Day
250 240 1
UCL = X + A2 R UCLX X = X + A 2 R
UCL=242.8
= = 212.4 212.4 + + 0.483 0.483 62.6 62.6 = = 242.8 242.8 LCL = X - A2 R LCLX X = X - A 2 R = = 212.5 212.5 -- 0.483 0.483 62.6 62.6 = = 182.3 182.3
Sample M ean
230 220 210 200 190 180
BETWEEN BETWEEN
Mean=212.5
LCL=182.3 1 2 3 4 5
Subgroup
150
UCL = D4 R UCLR R = D 4 R
UCL=125.4
Sample Rang e
100
WITHIN WITHIN
R=62.6 LCL=0
= = 2.004 2.004 62.6 62.6 = = 125.4 125.4
50
n = 0.483 and D 4 = n= =6 6 so so A A2 = 2.004 2.004 2 = 0.483 and D4
Interpreting X-bar and R Charts

R Chart Review this Chart first If in control, then variation within subgroup is stable and predictable. Proceed to X-bar Chart. If not in control, variation part to part is unstable and unpredictable. Stop and check rational subgrouping parameters and/or special causes. X-bar Chart If in control, then variation between subgroups is stable and predictable. Proceed to calculate capability, test hypotheses, etc. If not in control, variation between subgroups is place to work.
Determining if Variation is Between or Within Subgroups
Between Group
X
Within Group Between Group
Within Group
R Chart: Within Group Variation
Is the Variation Within Subgroup Consistent?

In-Control ? Yes Out-Of-Control ? No
UCLR _ R LCLR
X-bar Chart: Between and Within Group Variation
Is Variation Between Subgroups greater than Within Subgroups?

In-Control ? No Out-Of-Control ? Yes
-X UCL = X -X LCL
Defining Variation from Control Chart

What is within variation? Where is it found? What is another name for within variation? What is between variation? Where is it found? What is another name for between variation? What is the key measure that determines both the Range and X-bar control limits?
Exercise
Based on the previous I and MR analysis, the team observes potential sources of variation in operator and round. Evaluating product performance has proved difficult with the large variation present. The team decides they must first understand within and between variation for these sources before continuing with the evaluation. How might your team change the way you are looking at the data to gain insight to differences in the sources of variation? Plan your experiment then run it and look at your data. Make it give up information related to these sources of variation.
Chart Your Results

Moving Range Individual Value
Sampling Plans
Sampling Plans: A Control Chart is only as useful as the sampling used to collect data. Consider a hypothetical process where all measurements on a key characteristic are available. The output from this hypothetical process is shown below.

TIME
X Chart Range Chart Examines Variation Within Subgroups
Upper Control Limit
Examines Variation In Process

Upper Control Limit
Centre Line (X)
Centre Line (R)
Lower Control Limit
Sampling Strategies
The purpose of sampling is to reduce the cost and time of checking every unit. The goal is to capture the voice of the process efficiently. The charts on the following page are the output from a typical process. The goal is to make the output consistent, but you dont know whether to work on xs within time period or between time period. You dont know about the points you dont measure, yet you need sampling to understand the state of the process. Sketch the control charts for each sampling plan and subgrouping strategy. (Space is provided for you to suggest and draw charts for two sampling schemes.) Which of the charts best displays the voice of the process?
Sampling Plans Case 1

Hour 0 Hour 2 Hour 4 Hour 6 Hour 8 Hour 0 Hour 2 Hour 4 Hour 6 Hour 8
TIME
TIME
Create charts by subgrouping the first and last point of each time period.
Range Chart
Upper Control Limit
Create charts by subgrouping the first two and last two points of each time period.
Range Chart
Upper Control Limit
Centre Line(R)
Centre Line(R)
X Chart
Upper Control Limit
X Chart
Upper Control Limit
Centre Line(X)
Lower Control Limit
Centre Line(X)
Lower Control Limit

Shift 1
Shift 2 Shift 3 Shift 1

Shift 1
Shift 2 Shift 3 Shift 1
TIME
Create charts by randomly subgrouping three points each shift.

Range Chart
Upper Control Limit
Create charts by subgrouping the last two points and first two points of each shift (4 points total per group)
Range Chart
Upper Control Limit
Centre Line (R)
Centre Line (R)
X Chart
Upper Control Limit
X Chart
Upper Control Limit
Centre Line (X)
Centre Line (X)
Lower Control Limit
Lower Control Limit

TIME
TIME
Charts resulting from suggested sampling plan 1.

Range Chart
Upper Control Limit

Range Chart
Upper Control Limit
Centre Line (R)
Centre Line (R)
X Chart
Upper Control Limit
X Chart
Upper Control Limit
Centre Line (X)
Centre Line (X)
Lower Control Limit
Lower Control Limit

TIME
TIME

Range Chart
Upper Control Limit

Range Chart
Upper Control Limit
Centre Line (R)
Centre Line (R)
X Chart
Upper Control Limit
X Chart
Upper Control Limit
Centre Line (X)
Centre Line (X)
Lower Control Limit
Lower Control Limit
Expansion of Sub-grouping
Examine this output from a hypothetical process. The '' indicate output from one machine. The '*' indicate output from another machine.
Time Assignment: Describe some sampling & graphing plans that might detect differences in machine.
* * **
*** *
* * ** * ** ** ** *
* * ** * * * * * * *** *
* * ** * * ** * * ** * ** * *
**
* *** ** * * * * * * ** ** **
* * * * * *
* * ** * ** *
* *
Successful Sub-grouping Tips
To aid in understanding a process, the intent of control charts on end-product parameters is to learn about sources of variation. The size and frequency of subgroups, the number of subgroups, and the sampling locations are a function of the state of process knowledge. Subgroups are determined by the process variables identified on the process map and by cause and effect diagrams.
Subgroup size, sampling frequency and time period are largely determined by considering the possible frequency of change of those process variables and causes. Sources of variation potentially causing systematic differences in product parameters are also large drivers of sampling and subgrouping plans.
Defect (Attribute) Data
np-chart p-Chart C-chart U-chart
Control Charts Options (2)

Attribute (discrete) data: np (# of defective items; Constant sample size)
p(# of defective items; Sample size is not constant) c (# of defects; Constant sample size) u(# of defects; Sample size is not constant)
Statistical Process Control Chart Selector

Determine x to Chart
Is the interest in non-conforming UNITS? Is the interest in non-conformities per unit?
Are the data variable?
Attribute
No
Yes
Is the sample size constant?
Yes No
Variable
p Chart
Is the sample size constant?
No
U Chart
Yes
Yes
np or p Chart
Does it make sense to subgroup for Within group variation analysis? No Yes Can subgroup averages No be conveniently calculated? Yes Subgroup size 9 or more? Yes Can sample standard deviation be calculated? Yes No No
C or U Chart
Me-R Chart
X-mR Chart
Examples: Batches, customer demand by request date, too little data, etc.
Xbar-R Chart
Xbar-R Chart
Assumptions: Rational Subgrouping performed if using subgroups. The measurement system has been assessed and is appropriate. Adapted from AIAG SPC Manual
Xbar-s Chart
np-Chart
Charts number of items in a sample having an attribute Each subgroup is the same size Purposes
Find the average number having the attribute Find subgroups where the number is out of control relative to other subgroups
30
NP Chart for Rejects

1
Sample Count
20
1 UCL=19.96
10
NP=12
LCL=4.043 0 0 10 20
Sample Number
An example is inspection
Attribute is nonconformance to some requirement Periodic samples are checked Sample size is always the same Assume nonconforming
Assumptions
Items in a subgroup are distinct Each item either has or does not have the attribute
p-Chart
Charts proportion of items having an attribute - the number having the attribute divided by the number of items Each subgroup can be a different size Purposes
Find the average probability of having the attribute Find subgroups where the proportion is out of control relative to other subgroups
P Chart for Rejects
UCL=0.3324 0.3
Proportion
0.2 P=0.1685 0.1
0.0 0 10 20
LCL=0.004728
Sample Number
Caution: All proportions are ratios, but not all ratios are proportions
Incorrect uses:
Same assumptions as
Todays rework divided by todays production Number of defects on all invoices divided by the number of invoices
Example p-Chart
Each month, the company receives a different number of complaints Each complaint requires a report be written within 15 days For some number of the complaints, the reports are not finished by 15 days P-Chart shows the proportion of each months complaints where the report was not completed on time Conclusion Overall, 16% of the reports were not finished on time Process improvements seem to have reduced the proportion, continue to monitor Unusually high action is necessary to uncover the cause
P Chart for Unfinished Reports
0.4
0.3
UCL=0.2950
Proportion
0.2 P=0.1565 0.1 LCL=0.01809
0.0 0 5 10
Sample Number
Process improvement was made here continue to monitor progress
C-Chart
Charts the number of events within a constant area of opportunity C Chart for Blemish Purposes Find the average number of events 8 3.0SL=7.677 7 Find subgroups where the number is 6 out of control relative to other subgroups 5 4 Assumptions 3 C=2.725 Count the number of discrete events 2 The discrete events occur within some 1 well-defined region of space or time or 0 LB=0 product The events occur independently of 0 10 20 30 40 Sample Number each other, and in proportion to the size of the area of opportunity (it Example: Number of blemishes doesnt matter which portion of the continuum is chosen to be the area of A roll of material is 1 meter wide opportunity) A 2 meter section is taken from the The size of the area of opportunity is end of each roll the same for all samples For each section, the number of ALL the events are counted; as opposed to inspection, where things blemishes is counted and charted might be rejected upon encountering the first event, terminating the count
Sample Count
U-Chart
U Chart for NumLeaks
0.4
0.3 UCL=0.2955 Charts the number of events per unit sampled in each sub0.2 group (uneven subgroup sizes) U=0.1379 0.1 Same assumptions as C0.0 LCL=0 Chart, except: 0 10 20 The area of opportunity can Sample Number varying in size Example: Leaks per radiator The sizes dont vary Number of radiators varies each day randomly, but vary All leaks are counted on all radiators Some radiators might have zero deliberately or inherently leaks Chart the average number of Area of opportunity represents all events per area the surface area of radiators that
Sample Count
were produced that day Chart shows the average number of leaks per radiator by day
Control Charts Options (1)

Variable (continuous) data: X bar-R (Average and Range: measurements in subgroups) X bar-s (Average and standard deviation: measurements in subgroups) I-mR (also called X-mR) (Individual and moving Range: individual measurements)
Action - Action - Action

Dont MEASURE it if you are not going to RECORD it
Dont RECORD it if you are not going to GRAPH it Dont GRAPH it if you are not going to ANALYSE it Dont ANALYSE it if you are not going to take ACTION
Forms of action from Control Charts: 1. Proactive tool Real time tool for process control. Anticipate trends before they become a problem. 2. Predictive tool Process or product designers will know how to specify new products or processes. 3. Reactive tool When rejects or failures occur try to understand why and focus problem solving on the right sources of variation.
Why measure it, if you are not going to take ACTION?
A Case Study Sales Process
The Job of Management

When should you take action? Something has changed and you need to adapt When should you Stay the Course? Keep your resources focused on the Imperatives Decisions need to be made in the context of Variation
Case Study
Reference :
How To Teach Others To Apply Statistical Thinking, By Roger Hoerl, Galen Britz, Don Emerling, Lynne Hare, Janice Shade
Objective: Analyse the Case Study as if you were the VP of Sales Whats Going On Here?
Sample of Sales Data ...
Time
NEast 765 1008 1038 952 1041 1020 976 1148
SWest 1352 1353 1466 1196 1330 1003 1197 1337
NWest 883 851 997 878 939 834 688 806
NCentral 466 536 551 670 588 699 743 702
MAtlantic 691 723 701 802 749 762 807 781
SCentral 445 455 363 462 420 454 447 359
1995_Q1 1995_Q2 1995_Q3 1995_Q4 1996_Q1 1996_Q2 1996_Q3 1996_Q4
Values In Columns = Sales In Thousands
Managerial Statistical Thinking in Sales (1)

Suppose that Ron Hagler, the vice president of sales for Selit Corp., had just gotten a report on the past five years of quarterly sales data for the regions under his authority. Not happy with the results, he got on the phone to his secretary. Marsha, tell the regional managers I need to speak with them this afternoon. Everyone must attend ! Marsha had been Haglers secretary for almost a decade. She knew by the tone in his voice that he meant business, so she contacted the regional managers about the impromptu meeting at 2 pm. At 1:55 pm, the regional managers filed into the room. The only time they were called into a meeting together was when Hagler was unhappy. Hagler wasted no time. I just received the quarterly sales report. Northeast sales were fantastic. Steve, you not only improved 17.6% in the fourth quarter, but you also increased sales a whopping 20.6% over the previous year. I dont know how you do it !. Steve smiled. His philosophy to end the year with a bang by getting customers to stockpile units paid off again. Hagler had failed to notice that Steves first quarter sales were always sluggish.

Hagler continued: Terry, Southwest sales were also super. You showed an 11.7% increase in the fourth quarter and an 11.8% increase over the previous year. Terry also smiled. She wasnt sure how she did so well, but she sure wasnt going to change anything. Jan, Northwest sales were up 17.2% in the fourth quarter, but down 8.2% from the previous year, said Hagler. You need to find out what you did previously to make your sales go through the roof. Even so, your performance in the fourth quarter was good. Jan tried to hide his puzzlement. Although he had received a big order in November, it was the first big order he had received in a long time. Overall, sales for the Northwest were declining. Hagler was now ready to deal with the problem regions. Leslie, North Central sales were down 5.5% in the fourth quarter, but up 4.7% from the previous year. I dont understand how your sales vary so much. Do you need more incentive? Leslie looked down. She had been working very hard the past five years and had acquired numerous new accounts. In fact, she received a bonus for acquiring the most new business in 1994.

Kim, Mid-Atlantic sales were down 3.2% in the fourth quarter and down 2.6% from the previous year. Im very disappointed in your performance. You were once my best sales representative. I had high expectations for you. Now, I can only hope that our first quarter results show some sign of life. Kim felt her face get red. She knew she sold more units in 1996 than in 1995. What does Hagler know anyway, she thought to herself. Hes just an empty suit. Hagler turned to Dave, who felt a surge of adrenaline. Dave, South Central sales were the worst of all! Sales were down 19.7% in the fourth quarter and down 22.3% from the previous year. How can you explain this? Do you value your job? I want to see a dramatic improvement in this quarters results or else!. Dave felt numb. This was a tough region, with a lot of competition. Sure, accounts were lost over the years, but those lost were always replaced with new ones. How could he be doing so badly?
How To Teach Others To Apply Statistical Thinking by Roger Hoerl (GE), Galen Britz, Don Emerling, Lynne Hare, Janice Shade in Quality Progress - June 1997
The REAL Story

SW has no idea how they look good -PURE NOISE NE Stockpiling sales causes large swings in volume
I and MR Chart for Northeast
1400 1300 1200 1100 1000 900 800 700 600 0
I and MR Chart for Southwest

3.0SL=1368
1600 1500 1400 1300 1200 1100 1000 900 800 0 10 3.0SL=1535
Individual Value
X=1000
Individual Value
Q4 1992
10
X=1196
1996
-3.0SL=632.4
-3.0SL=857.3
Subgroup 600
GLORY
1
20
Subgroup
GLORY
20
Moving Range
400 300 200 100 0
3.0SL=451.6
Moving Range
500
400 300 200 100 0
3.0SL=416.0
R=138.2 -3.0SL=0.00E+
R=127.3 -3.0SL=0.00E+
NW has been dropping for years

I and MR Chart for Northwest
1500 1400 1300 1200 1100 1000 900 800 700 600 0 1
N Central chastised despite excellent growth

I and MR Chart for N. Central
750 1 1 1 3.0SL=669.7
Individual Value
Individual Value
3.0SL=1298 X=1026 -3.0SL=753.8 1 10
650 550 450 350
X=519.5
-3.0SL=369.4 0 10
Subgroup
GLORY
20
Subgroup 200
BLASTED
20
Moving Range
200 100 0 R=102.3 -3.0SL=0.00E+
Moving Range
300
3.0SL=334.3
3.0SL=184.5
100 R=56.47 0 -3.0SL=0.00E+
The REAL Story

Mid Atlantic chastised despite excellent growth
I and MR Chart for Mid-Atlantic
800 1 1 1
S Central has been holding even - PURE NOISE

I and MR Chart for S. Central
550 3.0SL=534.2
Individual Value
Individual Value
1 3.0SL=750.2 X=656.7
500 450 400 350 300 0 10 -3.0SL=306.4 X=420.3
700 600 500 1 0 1 1 -3.0SL=563.2 1 10
Subgroup
BLASTED
20
Subgroup 150
BLASTED
20
3.0SL=114.9
3.0SL=140.0
Moving Range
Moving Range
100
100 50 0
50 R=35.16 0 -3.0SL=0.00E+
R=42.84 -3.0SL=0.00E+
The VP gave GLORY for selling into the next quarters demand, no improvement, and loss of market share. The VP BLASTED two regions for excellent year over year growth, and one region for holding even in a tough competitive situation. This will drive terrible behaviours in the sales force. The best performers may look elsewhere for work. The marginal performers have been reinforced to sell into next month, continue mediocre performance, and hope for luck.
Final Thoughts
Failure Failureto touse useControl ControlCharts Chartsto toanalyse analysedata datais is one oneof ofthe thebest bestways waysknown knownto tomankind mankindto to increase increasecosts, costs,waste wasteeffort, effort,and andlower lowermorale. morale. --Dr. Dr.Donald DonaldJ. J.Wheeler Wheeler
People respond to the way they are measured. Using data correctly can drive GREAT results. Using data incorrectly drives CHAOS. Dont be part of the PROBLEM - Be part of the SOLUTION
Summary
We evaluate metrics to look for major sources of variation Concept of Within & Between variation is crucial. Control charting helps with this investigation. R Chart is used to display Within Variation X-bar Chart displays the Between Variation Subgrouping is a key concept. I mR chart can be used anytime. There are specific charts for attribute data.
Quiz True or False? (1)

1. Six Sigma focuses on SPC for continuous improvement more than monitoring. 2. Common cause variation is the random chance-like variation in a process. 3. Special cause variation creates an unusual deviation. 4. Control limits and Specification Limits are the same thing. 5. Nearly all of the variation of a stable process will lie between the upper and lower control limits. 6. One question the X-bar and R Chart asks is: Whats Changing Within Subgroups.
Quiz True or False? (2)

7. How we sample and subgroup determines the control limits for the X-bar Chart. 8. If we capture a lot of Xs and noise in the process our control limits will tend to be larger. 9. If an X can not be measured using variables data, it can not be plotted on a Control Chart. 10. Being in-control is how we learn more about our process. 11. Keep the charts in the lab to prevent losing them.
Introduction to Six Sigma Concepts

Subhash Dixit
History of Six Sigma

I
1999-2003
Enters finance, education, government
1996-98
1994-96
Enters chemicals, healthcare, services

GE and Allied Signal results popularize the methodology for manufacturing
1988
1985-87
Helps Motorola win Baldrige Award

Developed and deployed at Motorola
Six Sigma in Other Companies

Source: "Six Sigma - The pragmatic Approach" by Kjell Magnusson, Dag Kroslid and Bo Bergman
Mr Jack Welch, GE: "Six Sigma is the most important concept we have ever adopted, and it will bring us 70 to 110 MUSD savings in the coming 5 years."
Motorola 1987
IBM DEC 1989 1991
ABB Kodak Allied Signal TI General Electric 1993 1995
Air Products American Express Ford Motor Johnson Control Johnson & Johnson J.P Morgan Chase LG Group Ericsson Maytag Compaq Navistar Dow Chemical DuPont NCR Deere Nokia Lockheed Martin Philips Raytheon NEC Praxair PACCAR Seagate Tech Samsung Electronics Siemens Solectron Sony Sumitomo Toshiba United Technologies Whirlpool US Postal Service 1997 1999
Amazon.com Black & Decker Bosch Canon Caterpiller Compac Daimler Chrysler Dell Computor Delphi Aut. Syst. Eaton Corp. Flextronix Int Heller Financial ITT Internat. Johnson Controls Pilkington Polaroid Rexam Beverage Roche Diagno Samsung Sear Sun Microsystem Textron + +
2000
Six Sigma Vision

Statistical literacy is the key to our industrial competitiveness - Craig Barrett, Senior Vice President, Intel Statistical thinking will one day be as necessary for efficient citizenship as the ability to read and write H.G.Wells The next leader of this company will know this stuff, Being web savvy will become like reading and writing. So, there is never a choice between the two as a career enhancement -Six Sigma training is the career enhancer. - Jack Welch The problems that exist in the world of today cannot be solved by the level of thinking that created them - Albert Einstein
Benchmarking Sigma 6 5 4 3 2 1 PPMO 3.4 233 6210 66,807 COPQ < 10% 10-15% TYPE World Class
15-20% Averag e 20-30% Poor
308,537 30-40% 690,000 >40%
Accept 99.9% Quality ?

I
You get . . One hour of unsafe drinking water every month. Two unsafe plane landings per day at OHare International Airport in Chicago. 16,000 pieces of mail lost by the U.S. Postal Service every hour. 500 incorrect surgical operations each week. 50 newborn babies dropped at birth by doctors each day. 22,000 checks deducted from the wrong bank accounts each hour.
Six Sigma Evolution

Dr Mikel Harry, Richard Schroeder Bob Galvin of Motorola Larry Bossidy of Allied Signal Jack Welch of GE Charles Holliday of DuPont
Evolution towards Six Sigma

High Six Sigma Quality Marking Customers Winners : GE Tool - Kit Intensity of change Key Strategic Initiatives : QMI*, NPI*, OTR*, SP*, Productivity, Globalization Change Acceleration Process : Increase success and accelerate change Process Improvement : Continuous improvement, re-engineering Productivity / Best Practices looking outside GE Work- Out / Town Meetings : Low Continuous improvement, re-engineering
Time
Action Work-Outs Customized Work-Outs
Evolution of Six Sigma
Unconscious incompetence
Conscious incompetence
Conscious competence
Unconscious competence
We didnt know what we didnt know
Six Sigma The way we work
96-98 Industrial Quality Initiatives
97-99 Design for Six Sigma
99 -00 Customer Impact
00Customer Centricity
Six Sigma as a GOAL
Sigma Rating
2 3 4 5 6 Process Capability
PPM
308,537 66,807 6,210 233 3.4 Defects per Million Opportunities
The Sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per-million defective, and the probability of a failure/error.
Scenario
Organization: Motorola Turnover Locations : $ 4000 million : 30 Man Power : 1 lakh
I
1979 : Quality was poor Stiff competition especially from Japanese Companies. To become world leaders in manufacturing of communication products such as pagers, mobile phones etc.
Six Sigma Philosophy Science

* We dont know what we dont know * If we cant measure it, we really dont know much about it
Six Sigma
Art
* If we dont know much about it, we cant control it. Magic * If we cant control it, we are at the mercy of chance
What is special about Six Sigma Cultural Change & High Energy level
The conventional Quality efforts are implemented by & large through the normal organizational Hierarchy In 6 Sigma Approach Black Belts, Green Belts are trained who cut across Departments & Managerial Hierarchy. This brings up high energy individual in the forefront irrespective of their Seniority These Belted Boys become change Agents Routine work is not affected so nobody can crib
Facilitators of Six Sigma

1. Master Black Belt : First and foremost teachers. They also review and mentor Black Belts. Selection criteria for Master Black Betls are quantitative Skills and the ability to teach and mentor. Master Black Belts are full-time positions. 2. Black Belt : Leaders of team responsible for measuring, analysing, improving and controlling key process that influence customer satisfaction and / or productivity growth. Black Belts are fulltime positions. 3. Green Belt:Similar to Black Belt but not a full-time position. 4. Ultimately --All Employees
Six Sigma People

GM Global Quality & Six Sigma Full Time
Master Champions
Help choose projects Interview Black Belt candidates Tie project DPU to business needs. Remove barriers, drive Six Sigma in to the culture of their functions.
Greenbelts
Apply Six Sigma tools and methodology in everyday work
Black Belts Full Time

Develop tools, and teaching material. Conduct all training and communication sessions. Mentor Black Belts and their projects.
Six Sigma Black Belts Full Time

Full-time project work Change agents Expert application of tools.
Mean
SIX SIGMA
THE WAY WE WORK
Six Sigma Fundamentals

Specification Limit
Some chance of failure
1
Zst 2 3 4 5 6
DPMO 308,537 66,807 6,210 233 3.4

Zst ( distribution Shifted 1.5
The higher the number (Z) in front of the sigma symbol, the lower the chance of producing a defect
3
Yields through Multiple Steps/ Parts/ Processes

# of parts, Steps, or Processes 1 5 10 20 50 100 200 500 1000 2000 5000 10000 20000 50000
Much Less chance of failure
93.32% 70.77% 50.09% 25.09% 3.15% ,10%
99.38% 96.33% 93.96% 88.29% 73.24% 53.64% 28.77% 4.44% 0.20%
99.9767% 99.88% 99.77% 99.54% 98.84% 97.70% 95.45% 89.00% 79.21% 62.75% 31.19% 9.73% 95%
99.99966% 99.9983% 99.997% 99.993% 99.983% 99.966% 99.932% 99.830% 99.661% 99.932% 98.314% 96.657% 93.426% 84.366%
1
6
THE 3 TENETS:
1. PROCESS SIMPLIFICATION - Rolled Throughput 2. IMPROVING THE MEAN 3. CONTROLIING VARIATION - Customers feel variation, not averages - the hidden factory
Aligning the orgnanization

Business Strategy for Growth & Competitiveness Performance Management Career Management Flow Up E & E 9 Blockers
Y Flow Down to Functions & Divisions Sub Ys Evolved The Big Ys : Organization Level Goals & Objectives
Score Score Cards Cards
Monthly Reviews
Set Effectiveness & Engagement 9 Blocker
6 Sigma Project Execution & Tracking

Create 6 Sigma Project Funnel Mapping Projects to Sub Ys Prioritize & Sequence Projects
Select, Align, Train People - MBB, BB. GB
Shooting for the target

BB, MBB, & Biz Team Brainstorms to fit in Big Picture & Arrive at Relative Priority
Maps Organizations G&O? Current Sigma Too Low ?
Customer Benefits ? Well Bounded Problem ? Maps to My Daily Job
Financial Benefits ?
Green Belt Pitches Idea
All Stakeholders Sign Off
Six Sigma Methodolgies : DMAIC

The 5-Step Methodology
GUIDE POSTS D I R E C T I O N
Define
Measure
Analyze
Improve
Control
What are the Customers Needs & Key Processes ?
What is the Frequency of Defects
When and Where do Defects Occur ?
How can we fix the process ?
How can we ensure process Remains Fixed ?
TOOLS
TRANS- Surveys PORT Interviews Inquiries Process Map Measurement Statistical Analysis DOE Error Proofing Sigma Score Pareto SOP Process Monitoring Cost of Poor Quality FMEA Risk Analysis Action Planning
Six Sigma Methodolgies : DMADV

The 5-Step Methodology
GUIDE POSTS D I R E C T I O N
Define
Measure
Analyze
Improve
Control
Understand Initiate, Scope, Customer Needs and and Plan the Specify Project CTQs
Develop Design C oncepts And High Level Design
Develop Detailed Design and Control / Test Plan
Test Design and Implement Full - Scale Processes
TOOLS
TRANSPORT MGP Project Management Customer Research QFD Benchmarking FMEA / Error Proofing Process Simulation Design Scorecards
Brain Storming Fishbone Pareto Analysis ANOVA T,F, 2 Tests Box & Matrix Plots Regression
Summary of Methodology
ANALYZE : Y= f (x ) ( Statistical Definition )
Process Mapping Process Modeling Process Simulation DOE FMEA Score Cards Tolerance Models
DESIGN ( Statitiscal Solution )

QFD Control Charts Capability Charts MTTR, MTBF SPAN
CONTROL & VERIFY Pilot Changes in Process & Technology Optimize ( Poka Yoke ) Control Charts
MEASURE Current Capability ( Process & Product ) DEFINE Where am I ? Where do I want to Go ?
INSTITUTIONALIZE Document, Train AAA Across the Organisation
Six Sigma People
GM Global Quality & Six SIGMA Full Time
Champions
Greenbelts
Apply Six Sigma tools and methodology in everyday work
Master Black Belts Full Time
Help choose projects Interview Black Belt candidates Tie project DPU to business needs Remove barriers, drive Six Sigma into the culture of their functions
Develop tools, and teaching material Conduct all training and communication sessions
Six Sigma Black Belts Full Time

Full-time project work Change Agents Expert application tools
Mentor Black Belts and their projects
Six Sigma Execution

QUALITY FOCUS AREAS
FUNCTIONAL CHAMPIONS
ORGANIZATION : ACCOUNTABILITY
PRIORITIES CHAMPIONS
1. Clinical Excellence & Value 2. Fulfilment 3. Six Sigma with Customers 4. Global Products Company 5. Systems & Support 6. Proactive Risk Management
EXECUTION
Master Black Belt Black Belt / Green Belt
REVIEW & CONTROL

CLOSING THE LOOP
Project Team PROJECT
.FOR OUR COMPETITIVE EDGE
Focus Customer Impact

Clinical Excellence & Value
New Clinical Capability
Operational Excellence
Global Product Company
Supply Chain Excellence
Fulfillment Reliable products & service delivery Six Sigma with Customers
Help customers succeed ( ACFC)
Systems & Support

Quality Systems & Processes
Proactive Risk Management

Success in Global Complexity
Redefined value chain, Focused on Critical links
Systems & Support
Capability, Stability, Predictability of Internal Processes Information Systems Quality Organization Development & Retention Pricing & Margins Acquisition Integration
Proactive Risk Management
Finance Portfolio Regulatory Compliance Due Diligence - Potential Business Acquisitions Government Relations Environmental Health & Safety
Success in Global Complexity
What is special about 6 Sigma Sharper Tools

TQM PDCA approach Plan Do Check Act 6 Sigma DMAIC approach Define Analyze Measure Improve Control TQM is like Flood Light Six Sigma is like a Laser beam
Process Yield
Whats the yield of this process?
1000 Pcs
Step 1 Step 2 Step 3 Step 4
990 Pcs & 10 Rwk 985 Pcs & 15 Rwk 970 Pcs & 30 Rwk 950 Pcs & 50 Rwk
990 Pcs & 10 scrap
Final Test Step 6 Step 5
980 Pcs & 20 Rwk 960 Pcs & 40 Rwk
Pieces Out Pieces In
990 1000
Traditional Yield = 99%
First Pass Yield = 82.5% Traditional yield assessments mask the hidden factory!
Variation
Traditional View
Final Test
The Hidden Factory Rolled Throughput Yield is the probability that a product will pass through the entire process without rework and without any defects.It is the true yield for a product at the completion of all the individual processes. Six Sigma View:
Rework Reworkburied buriedin inthe thehidden hiddenfactory factoryincreases increasescosts costsand andreduces reducesthroughput. throughput.
Computing Throughput Yield, DPO, DPMO and Sigma

What is First Time Yield? What is Throughput Yield? What is Rolled Throughput Yield? How can Yield be converted into a Sigma Value and how can this value be used?
D5
Integrating Lean into Six Sigma

D
Material and Information Flow
D
Product
Product & Information Flow (VSM) Change Over Pull Systems Workplace Redesign Activity Waste Analysis Performance Measures Visual Controls
M
SCOR
Baseline Assessment Product Family Analysis
Productivity
Supply Chain (VSM)
People
Standard Work
SAP / APO , Kaizen Six Sigma, Empowered Workforce
Enablers
Foundational Elements
5S (Workplace Organization) , Total Productive Maintenance, Mistake Proofing, Stable/Reliable/Capable Processes, & Flexible Workforce
Slide 96 D5 APO - Automated Purchase orders

Dixit, 16-12-2007
First Time Yield FTY

First Time Yield = Non-defective units from a process Note: Does not offer a possibility to estimate the probability of a defect opportunity that may Escape to the Customer First Time Yield (unit-based) is simply the number of good (nondefective) units produced divided by the number of total units going into the process, i.e. the proportion of units containing exactly zero defects. FTY = units out / units in
Throughput Yield
Throughput Yield (First Time Through Yield) = Non-defective opportunities from a process step. Defect Opportunities = number of potential defects within one product or service. One product may have multiple defects and thus increase probability of defectives. Throughput Yield (defect-based) is the probability that all defect opportunities produced at a particular step in the process will conform to their respective performance standards.
Rolled Throughput Yield RTY

Rolled Throughput Yield (RTY) is the probability that a single unit can pass through a series of process steps free of defects.
RTY = e-TDPU
Rolled Throughput Yield provides a possibility to estimate: probability of creating a defect opportunity.
Use the Poisson assumptions* to translate between the proportion of units without defects and defects per unit (DPU).
"Implementing Six Sigma" by Forrest W. Breyfogle III (2003)
Definitions (1)
Unit (U) The number of parts, sub-assemblies, assemblies, or systems inspected or tested. Example: 1 unit = 1 square Opportunity (OP) A characteristic you inspect or test. Example: 1 opportunity = 1 circle (5 per unit) Defect (D) Anything that results in customer dissatisfaction. Anything that results in a non-conformance. Example: 1 defect = 1 red circle (total: 9 defects in all 4 units)
Definitions (2)
Defects per Unit (DPU) DPU = D/U = 9/4 = 2.25 Total Opportunities (TOP) TOP = U OP = 4 5 = 20 Defects per Opportunity (DPO): a Probability DPO = D/TOP = 9/20 = 0.45 Defects per Million Opportunities (DPMO): a Probability in ppm DPMO = DPO 1,000,000 = 0.45 1,000,000 = 450,000
Summary DPMO Calculation
Type Description
Defects Units D U
Opportunities OP
Total Opportunities
Defects per Defects per Million Total OpportOpportDefects per unities unities Unit DPO = D / TOP DPMO = DPO 106
TOP = U OP DPU = D / U
The Calculation Simplified
DPMO =
Defects in Sample (1,000,000 ) (Defect Opportunit ies per Unit )(Number of Units in Sample )
Calculate Throughput Yield Example

100 Units processed in a step. 5 Defect Opportunities are possible (4 CTQs and 1 more for all other potential defect types). 10 Defects found in 100 Units. Given there are 5 Opportunities per Unit. Defects per Opportunity (DPO) = 10/(5 100) = 0.02 Therefore, the probability of creating a defective opportunity= 2%. DPMO = DPO 1,000,000 = 0.02 106 = 20,000 DPU = D / U = 10 / 100 = 0.1 Sigma approximately 3.55 Throughput Yield = e-DPU = e(- 0.1) = 90.5%
Calculating Rolled Throughput Yield
RTY = (Throughput Yield1 Throughput Yield2 Throughput Yield3 ... Throughput Yieldn)
So, simply multiply the Throughput Yields calculated for each process step
Rolled Throughput Yield vs. Final Quality Audit

1 2
Process
Final Audit/Test
90% FTTY 90 %
90% FTTY
Times
90% FTTY
90% FTTY
Times
90% FTTY
=
81 %
Times
=
73 %
66%
Rolled Throughput Yield
Using Final Test or FQA ignores the hidden factory. Improve First Time Through Yield (FTTY) to improve the quality of Ys and achieve Six Sigma! RTY estimates the probability of failure using probability theory
Whats the Rolled Throughput Yield of this Process?

1000 Pcs
Step 1 Step 2 Step 3 Step 4
990 Pcs & 10 Rwk 985 Pcs & 15 Rwk 970 Pcs & 30 Rwk 950 Pcs & 50 Rwk
990 Pcs & 10 Rwk
Final Test Step 6 Step 5
980 Pcs & 20 Rwk 960 Pcs & 40 Rwk
Rolled Throughput Yield (RTY) = 990 x 985 x 970 x 950 x 960 x 980 x 990 1000 1000 1000 1000 1000 1000 1000 or RTY= e-TDU
Lean Six Sigma Project Selection

Specific SpecificSix Six Sigma Sigmaprojects projects
Y
Delivery Service
Improved quality
Y1
Y2
Reduced cost
Y3
Profitable Growth
Y4
Yn
Y2,1
Y2,2
Y2,3
Y2,4
Reduced ReducedCycle Cycletime time for Time to Market for Time to Market
Reduce ReduceCycle CycleTime Time from idea conception from idea conception to tonew newproduct product
Y2,3,1 Y2,3,2
Reduce ReduceCycle CycleTime Time for marketing for marketingof of new product new product
Root RootCauses Causes
X2,3,2,1
X2,3,2,2
X2,3,2,3
The Focus of Improvement

Given a distribution function which approximates the histogram of a process which displays a reasonable degree of statistical control: * The parameter which will be used to characterize process location is called the mean () of f(x). * The parameter which will be used to characterize process dispersion is called standard deviation () of f(x).
Leverage variables which control the Mean
Y =f(
X 1 , ... ,

XN )
Leverage variables which control the Standard Deviation
Scale of Y
The Focus of Lean Six Sigma Understand the relationship of inputs to the response Y = f(x)
Insight through Variance

Baseline Improved? What we 12 27 Delivery cycle time (days) see Cp 24 7 13 15 Cpk 7 4 Sigma Level 16 18 8 6 20 23 25 6 14 2 11.2 15.8 10 24 11 2 What customers feel 30 6 16 5 Using mean-based thinking, we improve Mean 15.8 11.2
Std Dev 7.0
9.0
average performance by 29%, and break out the champagne ... But our customer only feels the variance and cancels the next order!
Variation and Defects
Lower spec
Upper spec.
1st distribution 2nd distribution 3rd distribution
Defects
As the standard deviation increases, the number of defects increases.
Understanding Variation..
LSL
USL
Distribution Has moved to The right
LSL
USL
New Mean
Old Mean
To reduce defects
push the mean back
And also . Reduce the Variation
LSL
USL

Higher = less variation = fewer defects = better performance 6 process Lower Specification Limit (LSL) Upper Specification Limit (USL)
No Defects As long as Process Capability is Between USL & LSL
LSL
USL
Tolerance T = USL-LSL
Definition of a Six Sigma Process
If six standard deviations fit between our mean and the customers requirements . . . then: 99.99999975% of the products are included within the customer requirements. 6 5 4 3 2 1 1 2 3 4 5 6
A 6 process has 6 standard deviations between the target and the nearest specification limit
Lower Spec Target Upper Spec
Process Centre
6 Standard Deviations
6 Sigma
Types of Variation
I
Expected variation (common cause) Unexpected variation (special cause) normal random systematic chance expected stable predictable in statistical control abnormal non-random local assignable cause unexpected unstable unpredictable not in statistical control
Immediate Goal: Eliminate unexpected variation Long-term Goal: Continuously reduce variation
Control Charts and Introduction to Six Sigma Six Sigma Breakthrough Roadmap
Define
Define
Business Priorities Measurable Goals Selection Criteria SIPOC
Analyze
Problem Solving Teams Capability Studies Concepts of DOE DOE Strategies & Analysis Design for Six Sigma (DFSS)
Measure
Breakthrough Breakthrough business results rely business results rely on a rigorous, on a rigorous, structured structured methodology methodology The focus of Six Sigma
Measure
Economic Consideration of Quality Quality Metrics Thought Process Mapping Process Mapping FMEA MSE NEM Statistical Tolerancing
Capability OK ? N Analyze Change
Y=
f (X)
Improvement
DOE Advanced Statistical Tools Employee Involvement Confirm Causal Variables Establish Operating Limits Verify Performance Improvements
Need A Change ? N Improve
Define Define
Organizational Accountability
Control
Control Strategies Control Charts Revised Standard Operating Procedures Validate Control Systems Implement Control System Audit Control System Monitor Performance Metrics
Measure Measure Analyze Analyze Improve Improve Control Control
Capability OK? Y Control
Process Excellence Six Sigma (DMAIC) Road Map
Define
Project Charter
Problem Statement: Goal: Business Case: Scope: Cost Benefit Projection: Milestones:

Business Case
Explain why it is important to work on this project.
Measure
Funneling*
Measures
I P O
Develop measures based on CTQs and SIPOC map.
Input Measures
Process Measures
Output Measures
Develop charter to include project description, baseline measures, business results, team members and schedule. Use Benchmarking as appropriate to establish some of the initial targets.
O1 O2 I1 I2 I3 I4
O3 O4
FMEA
Determine the critical few measures.
Data Collection Plan

What questions do you want to answer? Operational Definition and Procedures Data What Measure type/ How Related SamplingHow/ Data type measured conditionsnotes where
Data Collection Plan
Control
Innovative Improvement
Define
S U P P L I E R S
SIPOC*
Inputs Process Outputs
Measure
Yield: 60% Yield: 90% Yield: 45% Yield: 98%
C U S T O M E R S
Process Door
VA NVA
Develop a data collection plan.
How will you ensure What is your plan for consistency and stability?starting data collection? How will the data be displayed?
Gage R&R
Col # 1 2 Inspector A Sample # 1st Trial 2nd Trial 1 2.0 1.0 2.0 3.0 2 3 1.5 1.0 4 3.0 3.0 2.0 1.5 5 10.5 9.5 Totals Averages 2.1 1.9 3 Diff 1.0 1.0 0.5 0.0 0.5 3.0 0.6 R A 4 5 B 1st Trial 2nd Trial 1.5 1.5 2.5 2.5 2.0 1.5 2.0 2.5 1.5 0.5 9.5 8.5 1.9 1.7 Sum XB 3.6 1.8 6 Diff 0.0 0.0 0.5 0.5 1.0 2.0 0.4 R B
Analyze
Complete high-level as is process map and analyze yield to identify the process step with the highest impact.
Validate your measurement system.
Perform a detailed process analysis to identify problems.
Sum XA
4.0 2.0
VOC
Data Display
Gather / display data verifying customer needs and requirements. Display the data in graphic form to show current variation and other patterns.
UCL 1000 0 -1000 X LCL
Delighters More Is Better
VOC
Key Issue CTQ
10
20
30
Process Capability and Process Sigma*

Cp= 0.4 = 2.7
LSL USL
D B F A C E Other
Must Be
Calculate current process capability and sigma.
V7
* Not all tools in this area will be covered in as much depth during training for the Non-Technical Environment
Analyze
Data Door and Stratification*
22 21 20 19 18 17 16 15 14 13 12
O O X X X X X X X O O X O X O X O O O O
Innovative Improvement
Cost-Benefit Analysis
1 2 3 4 5 6 7 8 9 10
Generating Solutions
A B C D 4 1 3 2
Control
Develop and deploy a plan for how to respond to process changes.
Flowchart 1 2
Product Name Process Name Process Code #
QC Process Chart
Date of Issue: Revision Date Issued by: Reason
Approved by: Signature
Control/Check Points Response to Abnormality Work Control Immediate Permanent Notes InstructionsCode # CharacMethod Who Fix teristics Limits Fix Who
Use Multi-Vari Analysis, Stratification, and other techniques to identify potential causes.
Perform cost-benefit analysis for the preferred solution.
Generate solutions including Benchmarking and select best approach based on screening criteria.
Before
Process Change Management

After Improvement } A2 A1 A3 A4
12
Qualification, Validation, and Revalidation.
A1 A2 A3 A4
Before
After
Good
} Improvement
Selecting the Solution
Step 4 changes implemented
} Remaining Gap Target
Document new process, using training manuals and other tools to ensure standardization
Documentation & Standardization

Training Ope Curriculum Pro rating Training ced Mau Manual s nre ua l
Cause & Effect

Display your theories about root causes using a cause & effect diagram.
Fill to here
Assessing Risks
Recommend a solution involving key stakeholders.
Monitoring
UCL
Monitor the process using control charts to ensure process stays in control and conforms to specification.
LCL
Hypothesis-Testing*
Chi-Square
Y
Regression Analysis*
Evaluating Results*
Use FMEA to identify risks associated with the solution and take preventive actions. LSL USL
= 2.7 Cp = 0.4
Piloting
Original Test Full scale Recalculate process capability, process sigma, and financial results based on improvements.
t-test ANOVA Verify Root causes through statistical tools.

X1
Regression
Design of Experiments* Implementation Planning

Use hypothesis testing to identify differences.
1 2 3
A B C
G E
Key Learnings Results

Learnings
= Cp =
3.7 1.4
5 6 7 8 9 10
D F H G I J
Pilot the solution on a small scale and evaluate the results.
Recommendations
next
Document results and summarize key learnings. Identify potential future projects.
Use DOE and response surface optimization to quantify relationships.
Develop a full plan for implementation and change management.
Hand off the improved process to the process owner for on-going process management. Reward the improvement team.
Closure
Six Sigma Team Roles & Responsibilities

Champion / Sponsor Define Project Select MBB, BB and team members Determine needed resources Orient teams Review Progress Master Black Belt Help Plan meetings Observe team performance Coach the team if required Green Belt / Black Belt Help champion or guidance team select team members Plan team meetings Lead meetings Handle meeting logistics Make recommendation or changes Six Sigma Team Participate in the meeting Help with administrative tasks Meet with Champion for reviews Make recommendations or changes
SUMMING UP
Six sigma is not a cure for everything It cannot compensate for a bad management strategy It cannot substitute for subject matter expertise (Remember: Garbage in, is garbage out) It is not a resource item like capital It is a tool that if properly deployed will bring positive results for the business
The Change Effectiveness Equation

I
QXA=E
TEC L HNI CAL ITY STR ATE GY
QU A
CHANGE
LS AC A R LTU CU
E C N A EG Y T P C E T R AT
TARGET
EFFECT
Approach ..Summary
6s For Cultural Change
I
1. 2. 3. 4. 5. 6.
Get Your Mind Around It Ingrain The Customer In Your Process Institutionalize It Involve Everyone REALLY!! Have The Right Focus
} } }
Customer
Customer
Quality Is Completely Satisfying Customer Needs Profitably
Process
Commit To Do It
Em pl oy ee
Employee
s es oc Pr
Extension of Best Practices to Suppliers & Customers
Customers
Suppliers
6-sigma is not something else that you do
It is what you should do.
Session 13 : Lean Six Sigma concepts
Subhash Dixit
Fulfillment
Input GE Process Output
Voice of the Customer

This is the date on which : I dont care what happens in here - thats your problem I wanted to use the equipment I wanted the part to arrive I wanted the repair to be comp I actually started using it I received the part I got my system repaired This is the date on which:
My Metric
= Outputs versus Input = Days Early / Late versus Request
My Expectation
= Zero for e very transaction
Fulfillment
5th Percentile 8.45 AM Median Time : 9.00 AM 50% cases, I arrive Before 9.00 AM
95th Percentile 9.45 AM
5% of the days I come to work within 8.45 AM Or 95% of the days I would be at work only after 8.45 AM
95% of the days I come to work within 9.45 AM Or at least 5% of the days I wont be at wok even at 9.45 AM 5th Percentile 8.55 AM 95th Percentile 9.10 AM
This 1 Hr is Unpredictability or SPAN
I have now minimized the SPAN to 15 Minutes ( 10+5 ) Note that My Median or Performance is 9.00 A.M, Which is the Customer required time.
Global Product Company
Strategy for Competitiveness : Transfer Manufacturing and Sourcing from HCC to LCC C O S T T I M
10% Material Cost Reduction
Process Structure Tools Training

Zst Catcher > Zst Pitcher
LCC I CV 25-30% Down 4 - 5 Years

On-going Material Cost Reduction in LCC
Six Sigma Transfers : The Phase Review Discipline
Lowest Cost, Highest Quality - Worldwide Made in GE ! Drive Competitiveness through Six Sigma
How The Tools Complement Each Other

VALUE STREAM OPPORTUNITY
Lean Method
Baseline Assessment Product Families Value Stream Map / Product Flow Employee Activity Set-up Time Standard Work Material Replenishment Cell Design / Implementation Cell Performance Metrics Continuous Improvement
VARIATION OPPORTUNITY
Six Sigma Methods
VOC SIPOC
Six Sigma Focus Areas

Performance Evaluation Routing Standardization Process and Product Variation Cycle time Variation Method Variation Process Variation Method Variation Demand Variation Implementation PMAP & FMEA Common vs. special causes Six Sigma Tools
Lean Methods
Process Groups Value Stream Mapping SMED Process Flow Analysis Waste Analysis
Define Define
Measure Measure
Analyze Analyze
MSA FMEA
Capability Hypothesis
Improve Improve
DOE Control Control SPC
Standardization 5S Performance Measurements Visual Controls Mistake Proofing
Five Minute Lean Six Sigma

Number Of Invoices Lean Project
Six Sigma Project Eliminates Penalties
1% Penalty for Over 35 Days
10
15
20
25
30
35
Number of Days to Pay Invoice

Lean On Original Process Not Practical
1. Current State Invoices are being processed on and average of 30 Days. 2. Supplier contract requires 1% Penalty for late Payments >35 days. 3. Six Sigma Project completed to Eliminate Penalties. 4. Supplier Offers 3% Discount if Invoices paid in less than 15 Days. 5. Lean Or Six Sigma Alone Could Not Accomplish
Lean Six Sigma Review

Original Process Lean Project Increased Speed
Lean Project Six Sigma Project Less Variation Eliminates Penalties
0 Lean On Original Process Not Practical
10
15
20
25
30
35
1.Six Sigma Reduction in Variation 2.Lean - Increased Flow/Speed
Lean Six Sigma

Faster, More, Cheaper and More Accurate
Controllable Inputs
X1
Inputs: Raw Materials, components, etc.
X2
X3
Quality Characteristics: Outputs
LSL
USL
Y1, Y2, etc. The Process
Uncontrollable Inputs, we have to live with
Z1
Z2
Z3

Logical Steps
DEFINE .Identify Process CTQ's and CTF's . Create Strategy . Fill Up Project Charter .Define SMART goals . Complete SIPOC . Understand Customer / Supplier Requirement
DMAIC - METHODOLOGY
DMAIC - Deliverables:
Key Deliverables: . DI: CTQ'S aligned with Business Strategy .D2: SMART Goals must be established . Project Sponsor/ resources including YB's / BB's identified .D3: Project Charter scoped and signed off by Champion/ Sponsor . Hard Savings / Soft savings estimated . Financial Controller briefed about the project . D4:Establish Y=F(X)
D EFINE
s Project Charter Thought Map SIPOC Survey Methods 7 management tools
MEASURE . Establish and measure Process and Performance gaps (Y's) . Identify a data collection plan . Perform Measurement System Evaluation
M EASURE
VSM, 5S, Standard work Swimlane Process Map MSE Thought Map Data collection worksheet
Key Deliverables: . (Y) must be identified and measurable . M1: Measure Baseline Sigma and waste. . M2: Identify "As-IS" and "To-BE" states X's as quantitative or . M3: Identify all possible qualitative and provide data collection plan . M4: Identify Hidden Factory . M5: Do the MSA . M6: Validate Y=F(X)
ANALYZE . Identify variation and Waste . Identify Cause and Effects . Perform Failure Mode Analysis . Perform Hypothesis Testing
A NALYZE
Hypothesis testing FMEA, VSM, Takt time C&E Regression Thought Map
Key Deliverables: .A1: Perform FMEA and C& E .A2: Identify Vital Few X's that are statistically significant for variation/waste .A3: Test the hypothesis . Significant X's must bear relation with Y or Validate Y=F(X)
IMPROVE . Identify the crucial causes for waste and variation . Design for robustness and reliability .Establish New Operating tolerances or specifications . Prove effectiveness . Execute and Implement
I MPROVE
Regression DOE VSM - Future state Standard work Kaizen Thought Map DFSS DFL or DFF
Key Deliverables: .I1: Proposed Solution .I2: Optimal setting for X's .I3: Separate Signal from Noise .I4: Operating specifications for X's confirmed .I5: Shift and trend in process towards "ToBe" State .I6: Validate Y=F(X)
C ONTROL
CONTROL . Develop Control Mechanisms . Document Standard Operating Procedures . Determine Process Capability . Develop RAIL . Implement Mistake Proofing and Visual Controls
Control Charts Process Maps Project Charter Sign off RAIL FMEA - Post RPN SOP KANBAN Mistake Proofing
Key Deliverables: .C1: List the Post RPN in FMEA .C2: RAIL- Responsibilities for next 3 months .C3: Mistake Proofing must be implemented as part of process .C4: Make up SOP's .C5: Process control Plan (SPC) .C6: Project sign off from Champion, financial controller, and AIT. C7: Prepare a transition plan for Project owner/ sponsor . Measure Y and control X
Indicates the number of potential X's
Lean Six Sigma Synergy

Six Sigma Lean
Y= f (X
1
, ... , XN )
Supply Chain
Speed in the value chain Waste elimination Value stream redesign Pull vs. Push
Speed of improvement Variation reduction How Problems are Solved Continuous Improvement
Optimization of Process, Policy, Organization, and Systems
Integrated Approach Maximizes Results!
D3

D D M A I
Material and Information Flow
Product
Product & Information Flow (VSM) Change Over Pull Systems Workplace Redesign Activity Waste Analysis Performance Measures Visual Controls
M
SCOR
Baseline Assessment Product Family Analysis
Productivity
Supply Chain (VSM)
People
Standard Work
SAP / APO , Kaizen Six Sigma, Empowered Workforce
Enablers
Foundational Elements
5S (Workplace Organization) , Total Productive Maintenance, Mistake Proofing, Stable/Reliable/Capable Processes, & Flexible Workforce
Slide 140 D3 APO - Automated Purchase orders

Dixit, 16-12-2007

Define Value stream Mapping Charter problem statement Voice of Customer Communicatio n Plan CTQ issues Business Results Benchmarking Measure Prioritization Matrix MSA Studies Analyze Regression analysis 5 Whys Improve DOE Control SPC
Kaizen events Visual Control
Capability Studies Videotaping Time studies SIPOC
Cause-effect Diagram Root cause analysis ANOVA Multi-vari Analysis Hypothesis testing
TOC Pull System SMED /SUD 5S or 6S
Control Plans TPM Standard Work Procedures and work Instructions Training requirements
Collecting data
Work flow improvement
Integrating Lean and Six Sigma Deliverables

Key Deliverables: . D1: CTQ'S aligned with Business Strategy . D2: SMART Goals must be established . D3: Project Charter scoped and signed off by Champion/ Sponsor . D4:Establish Y=F(X)
Define
VOC
Key Deliverables V1: CTF's must be aligned with Strategic Business Objectives V2: Leadership and Team Identification V3: Completed Project Charter with estimated Savings
Key Deliverables: M1: Measure Baseline Sigma and waste. M2: Identify "As-IS" and "To-BE" states M3: Identify all possible X's as quantitative or qualitative and provide data collection plan M4: Identify Hidden Factory M5: Do the MSA M6: Validate Y=F(X)
Key Deliverables
Measure
Value
VA1: Baseline assessment (Cpk) VA2: Identify Gaps VA3: Current VSM VA4: Future VSM
Key Deliverables: A1:Perform FMEA and C& E A2: Identify Vital Few X's that are statistically significant for variation/waste A3: Test the hypothesis
Analyze
Flow
Key Deliverables F1: WorkStream Organization / Cell Design F2: SMED /IMED F3: Standard Operating Procedures F4: Dynamic Line Balancing F5: Single Piece Flow
Key Deliverables: I1: Proposed Solution I2: Optimal setting for X's I3: Separate Signal from Noise I4: Operating specifications for X's confirmed I5:Shift and trend in process towards "ToBe" State I6: Validate Y=F(X) Key Deliverables: C1:List the Post RPN in FMEA C2:RAIL- Responsibilities for next 3 months C3: Mistake Proofing C4: Make up SOP's C5: Process control Plan (SPC) C6: Project sign off C7: Prepare a transition plan
Improve
Pull
Key Deliverables P1: Volume-variability Analysis P2: Mixed Model Scheduling P3: Kanban bin calculation P4: Make Supermarkets P5: Achieve pull material replenishment
Control
Perfection
Key Deliverables PE1: Visual / Electronic Dashboards PE2: Lean Daily Management Systems (LDMS) PE3: Team Recognition PE4: Continual Organization Learning
Six Sigma Vs. Lean

Process Orientation Customer Focus Y=f(X) Data and Metric Driven Variation Reduction Statistical Rigor Project Orientation Dedicated Personnel Bottom Line Results Data Driven Culture
Value Stream Orientation Customer Focus Flow Based Waste Elimination Velocity and Speed Driven Gemba (at the place where work done) Just in Time Surfacing of Issues Improvement at Lowest Possible Level Behavior Based Culture
Leveraging Tools
An Integrated Lean Six Sigma Approach

Optimized Processes
Six Sigma Methodology and Roadmap for Common Tool Usage
Define
Measure
Analyse
Improve
Control
Lean Six Sigma Define (Value Stream Approach)

Acme Stamp And Others
46 orders per Day
Project Charter Process Map Rolled Throughput Yield Voice of Customer (QFD) Value Stream Map Cause & Effect Matrix Potential Failure Mode and Effects Analysis Measurement Systems Analysis Data Collection & Sampling Statistical Process Control Capability Study Multi-Vari Study Hypothesis Testing/Confidence Intervals Design of Experiments Control Plan Celebrate
Confirmation and Schedule
MRP
Customer # Type Quantity Requested Delivery
Production Schedule Shipping Schedule
Fax
4h
Takt = 10 Min.
IN
Order Entry Computer
2d
Credit Check OUT Computer C/T = 2 min Batch = 2 day Reject = 10% Rework = 5%
2d
Reconcile IN Paper C/T = 5 min Batch = 2 day Reject = 0% Rework = 5%
4h
Finalize for output run at

night
Finalized batch waits
MRP C/T 1 min Batch 4 hr Reject = 0% Rework = 0%
C/T = 5 min Batch = 4 hr Reject = 0% Rework = 15%
Remaining Issues
16 hr 120 hr 13 min
4 hr 5 min 46 X 230 M.
48 hr 2 min
48 hr 5 min 92 M. All
4 hr 1 min
Mono Flow Information flows with material
push 230 M. process
46 M. 598 M.
Value Stream Map Lean Quick Hits Lean Value Streams
Synergies of an Integrated Approach
A value stream state approach for identifying opportunities coupled with a powerful data driven approach for prioritizing then addressing the opportunities The knowledge of how and when to apply the right methodology and tools to the right opportunity
Synergies of an Integrated Approach
The lasting organizational benefits of a culturally driven, behavior based approach, augmented with the data driven discipline A value stream approach to run the entire business with a sophisticated problem solving
Five Minute Lean Six Sigma

Number Of Invoices Six Sigma Project Eliminates Penalties
Lean Project
10
15
20
25
30
35

Lean On Original Process Not Practical
1. Current State Invoices are being processed on and average of 30 Days. 2. Supplier contract requires 1% Penalty for late Payments >35 days. 3. Six Sigma Project completed to Eliminate Penalties. 4. Supplier Offers 3% Discount if Invoices paid in less than 15 Days. 5. Lean Or Six Sigma Alone Could Not Accomplish
Lean Six Sigma Review

Original Process Lean Project Increased Speed
Lean Project Six Sigma Project Less Variation Eliminates Penalties
0 Lean On Original Process Not Practical
10
15
20
25
30
35
1.Six Sigma Reduction in Variation 2.Lean - Increased Flow/Speed
Lean Six Sigma Flow vs. Variation Exercise Why do we need to integrate Lean and Six Sigma?
Review of Definitions of Yield

The Classical Definition of Yield Yield = Total # of good parts produced at the end of the process / Total # of parts manufactured Rolled Throughput Yield RTY = Yield1 * Yield2 * Yield3 * etc.
The Ten Principles for Improvement

Throw out all fixed ideas about how to do things Say how the new method will work - not how wont it work Dont accept excuses Dont seek perfection Correct mistakes when they are found - not months later Dont spend a lot of money on improvements The problems encountered give us a chance to use our brain Use the 5 Whys to find the root cause Ten peoples ideas are better than one persons Improvement knows no limit
Transformation to Lean Six Sigma

Companies deploying some form of Lean Six Sigma
Xerox TRW Ford Motor Co. Caterpillar Honeywell Ingersoll-Rand The Stanley Works Bank of America Starwood Hotels & Resorts Sunbeam Visteon Corporation United Technologies Washington Mutual Colgate-Palmolive Siemens Business Services St. John Health Systems
And many more Virtually all organizations who have deployed Six Sigma are now investigating how to integrate Lean
Industries in Lean Six Sigma

Industries deploying some form of Lean Six Sigma
Advertising Banking Computer services & outsourcing Document management Energy services Field & technical services Financial services Hotels & hospitality Insurance Logistics and distribution services Professional services Sales & Marketing Transportation Manufacturing
Implementation of Lean Six Sigma has transcended traditional manufacturing

12 Introduction To Six Sigma

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12 Introduction To Six Sigma

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Control Charts and Introduction to Six Sigma

Session 12: Control Charts and Introduction to Six Sigma concepts

Control Charts and Introduction to Six Sigma

Control Charts - Topics of Discussion

Control Charts and Introduction to Six Sigma

Typical Process Metrics

What Whatare aresome somemetrics metricsassociated associatedwith withyour yourprojects? projects?

Control Charts and Introduction to Six Sigma

Sample Mean Sample Mean

Sam ple N um ber Sam ple N um ber

Control Charts and Introduction to Six Sigma

Control Charts and Introduction to Six Sigma

Control Charts and Introduction to Six Sigma

Types of Control Charts

Control Charts and Introduction to Six Sigma

Control Charts and Introduction to Six Sigma

I and MR Chart Basics

Difference between successive INDIVIDUAL VALUES is Range value

Control Charts and Introduction to Six Sigma

Individ ual Value

What does this indicate?

Control Charts and Introduction to Six Sigma

Drawing A Moving Range Chart

Control Charts and Introduction to Six Sigma

Table of Constants for Control Charts

Control Charts and Introduction to Six Sigma

Formulas for Individuals Charts

Control Charts and Introduction to Six Sigma

Exercise - Moving Range Charts

Control Charts and Introduction to Six Sigma

Chart Your Results

Control Charts and Introduction to Six Sigma

When to Use Individual Moving Range Charts

Control Charts and Introduction to Six Sigma

Individual Moving Range and Rational Subgrouping

Control Charts and Introduction to Six Sigma

Control Charts and Introduction to Six Sigma

Analysing the X-Bar & R Chart

Control Charts and Introduction to Six Sigma

Analysing the X-Bar & R Chart

Control Charts and Introduction to Six Sigma

X-bar and R Chart - Terms

Control Charts and Introduction to Six Sigma

Drawing an X bar & R Chart

Control Charts and Introduction to Six Sigma

Formulae X-bar and R Chart

Control Limits for Average and Range

where A2, D3 and D4 are constants based on subgroup size.

Control Charts and Introduction to Six Sigma

X-bar & R Chart Example

Control Charts and Introduction to Six Sigma

X-bar & R Chart for Aged Release

What is your interpretation of these charts? What would you do about

n n= = 4: 4: A = 0.729 A2 2 = 0.729 D = 2.282 D4 4 = 2.282

Control Charts and Introduction to Six Sigma

X-bar & R Chart Transactional Example

Control Charts and Introduction to Six Sigma

X-bar & R Chart for # Users/Day by Business Unit

230 220 210 200 190 180

= = 2.004 2.004 62.6 62.6 = = 125.4 125.4

n = 0.483 and D 4 = n= =6 6 so so A A2 = 2.004 2.004 2 = 0.483 and D4

Control Charts and Introduction to Six Sigma

Interpreting X-bar and R Charts