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Deming Chain Reaction

Improve Quality

Costs Decrease

Productivity Improves

Capture the

Stay in Business

Provide jobs and more jobs

Market

Source: W. Edwards Deming, Out of the Crisis, p. 3.

Customer satisfaction

Degree of Achievement

Source: adapted from material presented by Kurt Hofmeister, ASI,

in a 3-day QFD workshop at Texas Instruments in 1989.

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Source: adapted from material presented by Kurt Hofmeister, ASI,

in a 3-day QFD workshop at Texas Instruments in 1989.

Organizational Quality Models

(Implementation Models)

Malcolm Baldrige National Quality Award

Six Sigma

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Baldrige Criteria
Organizational Profile: Environment, Relationships and Challenges

5 2 Strategic 1 Planning Human Resource 7 Focus Leadership Business

Results 3 6

Customer and Market Focus

Process Management

Measurement, Analysis and Knowledge Management

http://www.quality.nist.gov/index.html

GE Six Sigma Brochure

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More and more, the language of GE is the language of Six Sigma, the quality initiative begun in late 1995. It has become central to GEs ability to operate as a global whole. Six Sigma refers to a standard of excellence defined as having no more than 3.4 defects per million - in anything, whether its manufacturing, billing or loan processing. GE says it will spend $500 million on Six Sigma projects this year and will get more than $2 billion in benefits.
See Jack. See Jack run. Thomas Stewart. Fortune, September 27, 1999, p. 132.
(emphasis added)

Jack Welch tells his young management charges to master the Six Sigma discipline that leads to black belts if they want to move

up at General Electric. This Kind of Black Belt Can Help You Score Some Points at
(emphasis added)

Work. Hal Lancaster. Wall Street Journal, Tuesday, September 14, 1999, p. B1. 7

What Makes Six Sigma Different?

1. Integrating the human and process elements of improvement. 2. Focusing on the bottom line.

3. Linking improvement tools in an overall approach. (Define - Measure - Analyze - Improve - Control)
Human Issues Bottom line Management leadership Sense of urgency Customer focus Project teams Culture change Process Issues Process improvement Analysis of variance Disciplined approach Quantitative measures Statistical methods Process management
8

Ronald Snee, Why Should Statisticians Pay Attention to Six Sigma, Quality Progress, September 1999, pp. 100-3.

Quality, TQM and Six Sigma 4

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Why Six Sigma Works

Bottom line results created.

Senior management leadership is active.

A disciplined approach (DMAIC) is used.

Rapid project completion (3-6 months).

Clearly defines success.

Infrastructure (MBB, BB, GB) established.

Customers and processes are the focus.

A sound statistical approach is used.

Ronald Snee, Why Should Statisticians Pay Attention to Six Sigma, Quality Progress, September 1999, pp. 100-3.

Motorolas Six Steps to Six Sigma

note: adapted from Motorola six step process

1. Define your product or service

2. Identify customers and their needs.

3. Determine how to satisfy the customer.

4. Identify the process for creating your product.

5. Eliminate waste and defects from the process.

6. Measure your results for continuous improvement.

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Quality, TQM and Six Sigma 5

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The Define Step

See entire Chapter 1, Using DMAIC to Improve Speed, Quality and Cost, The Lean

Six Sigma Pocket Toolbook.

Develop the charter.

Map the

Understand the voice of

process. the customer.

TOOLS:

Review project charter

Validate problem statement and goals

Affinity diagram, charter, communication plan, control charts, critical to quality tree, data collection, kano model, Pareto diagram, run chart, SIPOC, y=f(x).

Validate voice of the customer and voice of the business

Source: The Six Sigma Memory Jogger II.

Validate business benefits

Source: The Lean Six Sigma Pocket Toolbook.

Validate high-level value stream map and scope

Create communication plan

Select and launch team

Develop project schedule

Complete define gate

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Define Gate
1. An updated project charter
Problem statement Key stakeholders Business impact Goal statement Verification of project scope High level project plan List of team members

2. Documentation of your customer knowledge 3. A high level process map and/or SIPOC diagram 4. Detailed project management plans

Source: The Lean Six Sigma Pocket Toolbook.

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The Measure Step

Collect Plot defect Create &
Value stream map for deeper understanding and

baseline data

data over time stratify

focus

on defects

and analyze frequency

Identify key input, process

and their

for special plots and do

and output metrics

possible

causes. Pareto
Develop operational definitions

causes. analysis.

Develop data collection plan

Validate measurement

Calculate

Create
system

process sigma.

detailed process maps.

Collect baseline data

Determine process

capability Complete measure gate

TOOLS:
Source: The Lean Six Sigma Pocket Toolbook.

Control charts, data collection, flowchart,

histogram, operational definitions, Pareto chart, process sigma, run chart, Taguchi loss function.
Source: The Six Sigma Memory Jogger II.

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Measure Gate
1. Detailed value stream map 2. Data and metrics 3. Capability analysis 4. Updated project charter and plans 5. Quick improvements

Source: The Lean Six Sigma Pocket Toolbook.

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The Analyze Step

Identify potential root causes

Develop a

Explore

Organize

Reduce list of potential root causes

focused

potential potential
Confirm root cause

problem

causes. causes.
effect on output

statement.
Estimate impact of root

causes on key outputs Prioritize root causes Complete analyze gate

Collect data.

Use statistical
Source: The Lean Six Sigma Pocket Toolbook.

methods to quantify a cause-andeffect TOOLS: Brainstorming, cause-and-

effect diagram, design of relationship. experiments, histogram,

hypothesis testing,

Source: The Six Sigma Memory Jogger II.

interrelationship digraph, scatter diagram, tree diagram.

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Analyze Gate
1. Process analysis 2. Root cause analysis 3. Updated charter and project plans

Source: The Lean Six Sigma Pocket Toolbook.

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The Improve Step

Create possible solutions for solutions. plans. Select Develop Pilot plans.

root causes.

Develop potential

solutions

Implement plans.

Measure results.

Evaluate benefits.

Evaluate, select, and optimize best solution

Develop to be value stream map(s)

TOOLS: Gantt chart, brainstorming, commitment

Develop and implement pilot solution Confirm attainment of

scale, control charts, failure mode and

project goals

effects analysis, histograms, involvement

Develop full-scale

matrix, Pareto chart, PDCA cycle,

implementation plan

prioritization matrix, process sigma, run

Complete improve

chart.
gate
Source : The Six Sigma Memory Jogger II.

Source: The Lean Six Sigma Pocket Toolbook. 17

Improve Gate
1. Solution development and selection 2. Pilot testing 3. Full scale implementation 4. Updated charter and project plans

Source: The Lean Six Sigma Pocket Toolbook.

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The Control Step

Implement mistake

Develop and Monitor documen t Train teams. performance. standard

plan, and process controls proofing

Develop SOPs, training

practices .

Implement solution and

ongoing process

measurements Identify opportunities to

Create

Summarize
apply project lessons

process for and updatin g

Recommend
Complete control gate

future plans. communicate

Transition monitoring /

procedures. learnings.
control to process owner

Source: The Lean Six Sigma Pocket Toolbook.

TOOLS: Communication plan, control charts, PDCA cycle, process management chart, run chart, six sigma storyboard.
Source : The Six Sigma Memory Jogger II.

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Process
Define
(Confirm the

Activity
Project ID Tools 1. Establish Team

Tools

opportunity and

Charter
define the

Project Definition

Form

2. Identify Sponsor
boundaries and

NPV/IRR/DCF Analysis

and Team Resources

goals of the

project.)

3. Administer Pre-

Work

The tools associated with the Define stage primarily serve the function of information documentation. The team needs a clear written charter that documents the business case for working on this project, the expected returns, team membership, the project sponsor, and so on. Process Mapping

Measure
(Gather data to establish the

1. Confirm Team Goal

Pareto Charts

2. Define Current
current state,

Value Analysis

Affinity/ID

State
what is actually

Brainstorming

C&E/Fishbones

3. Collect and
going on in the workplace with

Voting Techniques

FMEA

Display Data

Check Sheets

Control Charts

the process as it

Run Charts
works today.)

Gage R&R

There is a broad range of data and process tools used in Measure, including: Brainstorming techniques, to encourage creativity. Process mapping tools, to document how the process works today. Numerous data tools, to collect and display different types of data.

Analyze
(Interpret the

1. Determine Process Capability

Cp and Cpk

Regression

data to establish

and Speed
cause-and-effect

Multi-Vari

ANOVA

2. Determine
relationships.)

Box Plots

C&E Matrices

Sources of Variation

Marginal Plots

FMEA

and Time Bottlenecks

Interaction Plots

Problem Definition Forms Opportunity Maps

The Analyze tools are often used to analyze historical data that is, data that already exists. Using existing data is appropriate because you are looking for clues that will help you determine potential causes of problems. You have to be careful because sometimes you simply cannot get the information you need and you need to use a more powerful tool such as DOE.

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