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- Lecture 6

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@

TCE, Madurai

VV 1

Six Sigma

Single most effective problem solving methodology for business

and organizational performance.

Worlds top corporations have used this to increase their profits

Six Sigma proficiency in your resume is a pre-requisite to move into

a position in management.

As the methods and tools of six sigma have spread, it has become

easier to understand and more straight forward to implement.

The mysteries of Six Sigma have been revealed.

Simply stated, it is about applying structured, scientific method to

improve any aspect of business, organization, process or person.

Six sigma is for those who want to improve.

Do you want to improve?

VV 2

Good to Great

Goodness is not a function of larger than life leaders

What makes it great?

Disciplined people , Disciplined thoughts, Disciplined actions over extended

period of time

From the Industrial age to Information age, a paradigm shift has

come from leadership by position to leadership is a choice

In the new paradigm the greatest asset is the people in the organization with

their bodies, minds, hearts and consciousness all engaged and contributing

A trim tab in an aircraft that with the small motion allows bigger rudder to

achieve great effect

The leader acts as Trim tabs and their small actions can effect greater changes

In a knowledge economy, where 70 to 80% of value added to goods and

services comes from the knowledge work, can we imagine the results flowing

from having the entire people in the organization Six Sigma literate?

VV 3

Six Sigma

It is about engaging:

Disciplined data collection and analysis

Best possible ways of meeting customer need

Applying comprehensive, actionable description of methods and tools

Minimizing wasted resources

Maximizing profit

VV 4

Skill Level and Belts

The skill level needed to solve complex problems need varying skills in

Statistics.

The certification in Six Sigma is accordingly classified as below.

Complexity

High level of Highly Black Belt

statistical expertise complex

Medium level of Moderate Green Belt

skill complexity

Everyday routine Less Yellow Belt

work Complexity

Master Black Belts are the Trainers

VV 5

Six Sigma

PACER

P

A

C

E

R

VV 6

Purpose and Objective

Purpose:

To enable students to apply Six Sigma concepts in any of

the activities that they want to improve

Objectives:

At the end of the course, students will:

Be able to explain and appreciate the Six Sigma approach

Understand the application of key Six Sigma tools

Practice this for any continuous improvement

Use data and take decisions based on data

VV 7

Agenda

What is Six Sigma and Basic Statistics

Methodologies

DMAIC methodology in detail

Application of Six Sigma tools

Mini project discussion (Ref guide for Project)

VV 8

Code of Conduct

Active participation

Positive attitude

Be on time

Cell phones off

VV 9

Expectations

VV 10

Roles and Responsibilities

- From Faculty

Teach and guide

Facilitate

Help in project and additional support, if any needed

Participants

Active listening

Team work in exercises

Ask relevant questions when in doubt

Do a project using six sigma techniques

Time keeper

Any volunteers?

VV 11

Why Six Sigma?

More challenging customer expectations on

quality

Increasing global competition

Ever growing market needs

Reduced Cycle time coupled with lesser costs

Complexity of problems

Identifying and eliminating problems

Better prediction of outputs (Big Y)

VV 12

What is Six Sigma?

Understanding and reducing variation

Example

Identifying Critical to Quality

Shortly as CTQ

Data driven approach

All with data

Design-in-Quality

Predictive design (Not the Test-in-Quality)

Iterative approach using

A structured and well disciplined methodology

A set of tools and techniques

VV 13

CTQ

The select, few, measurable characteristics that

are key to customer satisfaction

Failure to meet the CTQ will be a defect

Six Sigma measures and improves our ability to

deliver CTQs with minimum variation

Examples:

On-time delivery

Complete in all respects

Accuracy and reliability

Time to repair

Timeliness of doing things

Correctness

VV 14

Design in Quality

Transition to ...

Quality Quality

FROM TO

Modeling/Simulation with

Build & Test Design/Process Capability Flow up

VV 15

Six Sigma some definitions

Sigma it is the distribution about the mean - Average squared

deviation of each data point from the mean.

The Standard Deviation ( ) is the square root of variance a

common measure for variation

Sigma value - indicates how often defects are likely to occur and a

high value indicates high rate of success

Sigma level - the number of standard deviations between the center

of the process and the closest specification limit

Six Sigma a proven method and a set of tools, control techniques,

reporting methods and management techniques that combine to form

break through improvements

VV 16

Six Sigma - some definitions

Six Sigma performance

Statistical term for a process that produces less than 3.4 defect per million

opportunities

Six Sigma improvement

The key outcome of a business or work processes are improved dramatically

often by 70 % or more

Six Sigma deployment

The prescriptive rollout of six sigma methodology across the organization

with assigned practices, roles and procedures as per accepted standards

Six Sigma organization

Uses six sigma methods and tools to improve performance, customer delight

Lower costs, grow revenue, lower cycle time, reduce complexity

Increase capacity and capability

Minimize defects and errors

VV 17

What is Six Sigma?

3.

VV 18

Six Sigma Significance

DPMO % Defects

1 691462 69

2 308537 31

3 66807 6.7

4 6210 0.62

5 233 0.023

6 3.4 0.00034

7 0.019 0.0000019

Six Sigma is 3.4 Defects in Million Opportunities

VV 19

Basic Statistics

VV 20

Basic Statistics

Statistics is the science of collecting, analyzing, interpreting and presenting data.

Central tendency refers to the middle point of a distribution

Central tendency helps to state one value that would best capture and communicate the

distribution

MEAN (M)

The mean is a simple arithmetic average

How to compute Mean:

Add all the data points and divide by the total number N

M= X1+X2+.Xn / N

M=X/N Where indicates the summation of X1.Xn

MEDIAN (Md)

The median is the point that divides the distribution into two equal parts such that an exactly equal

number of scores fall above and below the point (50 th percentile)

How to compute Median:

Median = the( (n+1)/2) th item in the a data array (Midpoint value in a data set arranged from the lowest to highest)

the data set contains an odd number of values, the median is the middle value

If the data set contains an even number of values, the median is the average value of the two

middle values - where n= Number of items in the data array

MODE (Mo)

The mode is the most frequently occurring value VV 21

Basic Statistics

Population is the total set of units about which one would like to get information.

Sample is a subset of the population, usually much smaller and drawn randomly

from the population.

Inference is the process of looking at characteristics of the sample data values like

mean or variation, to make conclusions about the likely values of the

corresponding characteristics in the population.

N

X i

Population mean i 1 ( N is population size)

N

n

X i

Sample mean X i 1 (n is sample size)

n

VV 22

Basic Statistics

The measures of variability:

The Range

Variance (already explained earlier)

Standard Deviation

Range is the difference between the highest and lowest observed values

Range (R) = Value of highest observation - Value of lowest observation

Range is easy to understand and to find

Its usefulness as measure of dispersion is limited because it considers only the

highest and lowest values and ignores the variation among of other

observations

The range is more sensitive to outliers than the variance.

VV 23

Basic Statistics

The Variance ( ) as already explained is the Average Squared

Deviation of each data point from the Mean.

The Standard Deviation ( ) is the Square Root of the Variance.

The most common and useful measure of variation is the

standard deviation.

The Variance for a sum or difference of two variables is found by

adding both variances

X X

n

2

i

Var ( X ) i 1

n 1

VV 24

Basic Statistics

Normal Curve

Mean

Definition:

A probability distribution where the most frequently occurring value is in the middle and

other probabilities tail off symmetrically in both directions.

Bell shaped and characterized by mean (measure of central tendency) and standard

deviation (measure of dispersion or variability)

Area under the curve is 1 which is the probability of all outcomes

Characteristics:

Curve theoretically does not reach zero.

Curve can be divided in half with equal pieces falling either side of the most frequently occurring value.

A normal curve indicates random or chance variation.

The peak of the curve represents the center of the process.

The area under the curve represents virtually 100% of the process is capable of producing

VV 25

Arriving at Six Sigma

Identify the CTQs Define Defect Look for Defects

Critical to Quality

Opportunities in Products or

Characteristics or Any step in the Services

the Customer process where a Count Defects

Requirements for a Defect could occur failures to meet CTQ

Product or Service in a CTQ in all process steps

Defects per

Sigma

Million of

Level

Opportunity Convert DPMO to Arrive at DPMO

PPM

Sigma

Defects Per Million

Use the SIGMA

Opportunities

2 308,537 TABLE

3 66,807

4 6,210 Measuring & Eliminating

5 233 Defects is the Core of Six Sigma

6 3.4

VV 26

Is it

BREAK

TIME

YET!!

VV 27

Six Sigma Methodologies

DMAIC Approach

VV 28

Six Sigma Methodologies - DMAIC

DMAIC - Emphasis on new product or process development for

delivering robust products

Define: Identify the areas for improvement and interpret the customer needs

into Critical to Quality (CTQs) parameters

Measure: Collect data and measure the current Product / Process

capability/performance

Analyze: Identify the areas that affect the quality or contribute to the

problem and analyze the root cause of the problem

Improve: Evaluate and implement a consistent solution for continuous

improvement

Control: Sustain the improvements by continuously monitoring through a

control plan

VV 29

Six Sigma Methodologies - DFSS

DMADV (DFSS) - Emphasis on new product development

and delivering robust products

Measure: Collect data and Critical To Quality (CTQ) flow down to

Subsystems and components

Analyze: Identify the areas that affect the quality and the design for Xs

(DFx) parameters . Analyze various options and do a high level design

Design: Design a robust design

Verify: Ensure that the design meets the performance and customer needs

VV 30

DFSS

DFSS

Customer driven design Drives quality measurement

of processes with 6 and predictability

capability. improvement early in design

phases.

Predicting design quality

up front. Utilizes process capabilities

to make final design decisions.

Top down requirements

flow down (CTQ flow Monitors process variances

down). to verify 6 customer

requirements are met.

Cross functional

integrated design

involvement.

VV 31

The Basic Model/Transfer Function

Magic Equation

Transfer Function

Inputs

LSL

(X) USL

x1

x2 Y=f(x1,x2...)

Big Y

xn

Y = f(X)

Improving the output (Y) is of interest

Y Could be: Identify all xs and identify the critical ones

Customer Satisfaction Understand how Y is related to xs

Productivity improvement Y is a dependent variable and x is the independent

Defect Reduction

Variable. Thus Y is the effect and x is the cause

Any activity that needs Improvement

VV 32

DMAIC Tools

Define Measure Analyze Improve Control

Project Data Data Analysis To-be- Control

Charter Collection using Statistical Process Map Plan

(Goals, Roles) tools Score tools Modified Control

Voice of Card Graphical FMEA Mechanism

Customer Current (as- Analysis using Mistake

(VOC), QFD is) Process Dot plots, Proofing

Thought Map Box plots, Voice of

Process Map Voice of the Scatter plots, Process

SIPOC Process SPC and

(VOP) Control Charts,

Measurement Histograms,

System Cause & Effect

Evaluation Analysis,

FMEA, Pareto

Charts etc

DOE

Models,

Simulators

VV 33

Define Phase Project Charter

Defining what needs to be improved

Define the Problem statement through a project charter

Charter, Goals, Roles:

Problem Statement (Gap, Opportunity)

what, when, where, how big, impact, benefits

Goal Statement

what is to be accomplished

Team members and Responsibilities

who will be involved , team members, support people, coach, sponsor

Assumptions and Constraints

Limitations (time, support)

Preliminary Project Plan

DMAIC start and completion time

VV 34

Define Phase VOC

VOC

A strategy and system for continuously tracking and

updating customer requirements

Customer needs and data gathering technologies

Customer surveys and interviews

Customer behavior

Customer scorecards

Quality Function Deployment (QFD)

Market research/changes

Competitor assessment etc

VV 35

Define Phase VOC

What do people actually want?

Not what technology can we add to it?

Complexity leads to unreliability and makes use non-intuitive.

Customer attributes: what they want

Grouped into similar concerns

Preserve customers words and phrases

Includes concerns of retailers, regulators

Weight relative importance of concerns

Each gets a %, total sums to 100%

Separate input from each market segment

Will it create competitive advantage?

VV 36

Define Phase QFD

Quality Function Deployment

It is used to link the VOC directly to link the internal processes

QFD Matrices are graphical displays of the results of planning process

This is a system that methodically move customer requirements to

specifications for the process and ultimately into critical to quality (CTQ)

characteristics of the product and process

Also helps in prioritizing and decision making process

QFD is developed through a series of Matrices

In its simplest form, it involves a matrix that presents customer requirements

as rows and product or service features as columns

The cell where the row and column intersect, shows the correlation between

individual customer requirement and product requirement

When this is enhanced, by correlation of the columns with one another, the

result is called the House of Quality

VV 37

Define Phase QFD

3. Product

2. Importance characteristics

requirements matrix

target values

VV 38

QFD - House of Quality

Strong Positive Correlation

Positive Matrix

Negative

: Strong Negative Design req Target Direction

Like yield,

Hows

More is better

MTBF

Importance rating

size,

Less is better

Customer Req A specific amount

whats (rows)

Like low cost,

Expandability,

Small size etc Relationships

Strong 9

Medium 3

Weak 1

Target values

.

QFD is used for translating the needs and wishes of the customer into design requirements for products and services.

Quality : Meeting Customer Expectations

Function : The means to achieve the Quality

Deployment : The implementation of the means

VV 39

Define Phase TMAP

Thought Map (TMAP) is to capture, organize and develop the

teams thoughts that leads to the goal.

Elements in a TMAP

Questions asked - What we know and dont know

Tools used

Data collected

Knowledge obtained

Decisions made

Barriers encountered

VV 40

Define Phase TMAP

Benefits of TMAP

It provides an overview of the steps required to complete a six sigma project

It provides an efficient method of communicating the progress of the project

It helps to remember what assumptions were made, what was done, and the results that led to

where are we today in the project

It documents questions and answers for review by others later on

It documents the current level of thinking on a problem

It promotes critical thoughts while working on the project

phase of the DMAIC roadmap

VV 41

Define Phase TMAP

Some guidelines to consider when creating TMAP

Use Post-It notes

Involve all team members brain storm

Identify actions and people responsible for it

The following is to be avoided when doing a TMAP:

Critiquing thoughts behind project

Using a cookbook method of solving a problem

Blindly applying predetermined solutions

Acting on hunches not verified (but include them)

Knowing the answer before breaking down problem

Skipping steps or analysis

Jumping to conclusions

Questions could be:

What we know and we dont know, who are the customers and how will they benefits

what are the causes of the problems etc

VV 42

Define Phase TMAP

Tabular Format

VV 43

Define Phase TMAP

1st Level Thoughts

Available

Holiday

Travel

Destination

Options

Vacation Planning a

from family Stay &

work vacation accommodation

VV 44

Define Phase - TPM

2nd level

2nd Level Thoughts

Thoughts

1st level 2nd level

1st level Thoughts Thoughts

Thoughts

2nd Level Problem 3rd level

Thoughts Statement Thoughts

1st level 1st level

Thoughts Thoughts 4th Level

Thoughts

2nd Level

Thoughts 2nd level

Thoughts

t 3rd Level 4th level 3rd level

Thoughts Thoughts Thoughts

VV 45

Define Phase - SIPOC

SIPOC

Acronym for Supplier, Input, Process, Output and Customer.

SIPOC helps to identify competing customer requirements, identify gaps in

requirements and the associated process outputs or inputs responsible.

Helps in building the first controlled and organized view of work and helps to

provide the link between outputs and customer requirements

SIPOC is built from inside out, starting from the center, with the process

Identify the process and define its scope and boundary

Identify the outputs (what will be produced by the process)

Define the customers (name, title, organizational entity)

This also defines customer requirement

Define the inputs to the process (HR, materials, information)

Identify the sources of inputs

VV 46

Define Phase - SIPOC

SIPOC

Term Definition Actions

Process A Single Box description of the series Identify the Process - What is the definition

of activities that transform inputs into of the process?

outputs

Process The starting and ending points of the Identify the boundaries - Where should a

Boundaries process identified in the single box start and a stop boundary be placed?

Outputs The products or services delivered by the Identify the process outputs - What outputs

process that should satisfy the customer should be included?

expectations and meet or exceed the

customer requirements

Customers The people who receive the outputs and/or Identify the process customers - How to

those who put requirements on the outputs identify who are the customers?

Customer The quantifiable expectations that the Identify customer expectations of outputs -

Requirements customer has for the process outputs What are the customer requirements?

Process The quantifiable expectations that the Identify the inputs - What is the definition

Requirements process has for the suppliers inputs of an input

Suppliers Those who provide the necessary inputs to Identify the suppliers of inputs - What is the

the process definition of a supplier?

Process output The metrics used to determine how well Identify the processs expectations of the

measurements customer requirements are being met inputs - What are input requirements and

VV who specifies that? 47

SIPOC

Supplier Input Process Output Customer

Start 2

6 5 3 4

End 2

The input requirements are quantifiable expectations the process puts on the inputs

VV 48

Importance of Measure

When you can measure what you are speaking about,

and express it in numbers, you know something about

it; but when you cannot express it in numbers, your

knowledge is of meager and unsatisfactory kind. It may

be the beginning of the knowledge, but you have

scarcely in your thoughts, advanced to the state of

science.

Lord Kelvin

1891

VV 49

Measure Phase

Data For Measurement

Identify what to measure and stratification

Layers of data

Criteria for selecting measures

Priority

Accuracy, Repeatability & Reproducibility, Stability

Availability, Lead time

Benchmark

Develop operational definition

Identify data sources

Prepare collection plan

Efficiency and Effectiveness of Measures

Refine measures

Develop Baseline Measures and Identify Improvement opportunities

Defect Measures (Concept of DPO and DPMO)

VV 50

Measure Phase

Types of Data

Quantitative data (Variable data)

Continuous data: temperature, Diameter, Sales

Discrete or Count data: number of defects, employees hired

Qualitative data (Attribute data)

Examples: Good/Bad, Satisfied/Not satisfied, Go/No Go

The tools used for plotting and analysis are different for different types of data

VV 51

Measure Phase

Types of Variable Data

VARIABLES

QUANTITATIVE QUALITATIVE

Pulse rate 36o-38oC Social class Gender

Height Ethnicity

VV 52

Measure Phase VOP

Voice of the Process (VOP) is the use of control charts and

subgrouping techniques to judge how a process is performing.

Voice of the Process Control Charts

Control charts allow our processes to speak to us by showing

variability in data and a graphical representation of that variability

and how distributions are formed

Statistical process control (SPC) - based on numerical (variable)

measurements that become a picture of the process over time

All processes are subject to variability

Natural causes : Random variations

Assignable causes: correctable (Lack of infrastructure, Skill level)

When is a process said to be under control ?

When the variability in the quality characteristics is due to natural causes only

VV 53

Value Added

WORK Unavoidable, non-

PROCESSES

value added activities

are sometimes

described as required,

NORMAL ABNORMAL

non-value added. We

must challenge

ourselves to find

VALUE NON-VALUE creative alternatives to

ADDED ADDED these activities.

Value Added:

UNAVOIDABLE UNNECESSARY

Important to the

customer

Transforms information

or material

FLOW REDUCE ELIMINATE DONE RIGHT THE

FIRST TIME

VV 54

Measure Phase Process Map

Process Map

It is like a flow chart by adding more process information

It is a graphical representation of activities and events

Visually shows the complexity of the process

Goal is to capture all steps, identify their basic function and

connect it in a way that represents the process

Identifies the key process input variables (xs) that go into the

process step and the resultant key output of that step (small ys)

Inputs can be classified as essential input, noise, controllable or

standard operating procedure (SOP)

Steps are the tasks that that transform the input (xs) into outputs

(ys)

VV 55

Measure Phase

Process Map (As-is in Measure phase)

Ys Step 1 output Ys Step 2 output

xs input A xs input C xs

input B input D

input E

Identify the process boundaries - start and stop

Document all steps in the process

List all inputs (xs in each step as x for critical, C for controllable, N for noise, SOP for Std operating

Procedure)

List all outputs of each step

VV 56

Process Map Dos and Donts

DO map the process as it DONT map the process as you think it

actually happens happens or as you think it ought to

happen

DO think about the process

across the entire organisation DONT restrict your process map to

the activities in your own department

DO talk to the other people

who are involved in the DONT work in a vacuum

process DONT attempt to process map before

DO define the beginning and you identify a beginning and an end

end of the process before you

start DONT get bogged down with too

DO the process map at a high much detail

level DONT struggle on your own

DO ask questions

VV 57

Process Map Results

Re-check the process by looking at the following:

Start, end points and customers should be clear

Inputs and outputs should be identified

Indicate title of person / area responsible for each

task

A person not familiar with the process should be

able to easily understand the flow without any

explanation

The level of detail should be adequate to describe

inefficiencies VV 58

Measure Phase Why Measure

To make a decision:

Meet standards & specifications rejecting bad parts and accepting good parts

Criteria for acceptance of new measuring equipment

Evaluate variation

Compare measurement error to specifications

Where to improve?

How much to improve?

Is improvement cost effective?

Prevention oriented

Compare measurement error to product variation

VV 59

Measurement System Variation

What we see What it actually is

Measurement

inaccuracy

Measurement

Observed Variation

variation

Actual

Process

Variation

Actual Process

Variation

VV 60

Measure Phase - MSE

Measurement System Evaluation

A method which shows us where variation exists in the

measurement system

Total Variation = Process Variation + Measurement variation

Variability of the measurement system has to be a lot less than

process or output variation

To understand the process, we must reduce the measurement

variation

Sources of measurement variation could be:

Operator, Machine, Set up and Measurement noise

MSE should be RAVE (Relevant, Accurate, Valid and Easy to

measure)

VV 61

The Necessity of Training Farm Hands for First

VV 62

The Necessity of Training Farm Hands for First

Owners Feel they should carry on with the Family

Stock Because they Believe it is the Basis of Good

VV = 36 63

Defining Accuracy, Bias and Precision

On target

Reduced spread

XX Right mean;

Small standard

deviation

Unpredictable

X Off target

X XX

X X Right mean; XX

XX

X

X

XX Wrong mean;

X X large standard XXX

XX Small standard

X X deviation deviation

X

Accuracy is a measure of how close the average result matches the truth

Precision is a measure of how repeatable the results are for multiple measurements

Bias is the difference between the average of the measurements and the truth

VV 64

Analyze Phase

Most difficult and unpredictable part in DMAIC

Data Analysis

Statistical tools

Process Analysis

Understanding of problem areas

Areas that contribute to the problem

Root Cause Analysis

Cause and Effect analysis

Fish-bone Diagram

VV 65

Analyze Phase

Practically

Graphically

Analytically

VV 66

Analyze Phase

measurements, invoices, days, ) about which we would like

information.

randomly from the population, yielding data values that we can

analyze Practically, Graphically, and Analytically.

VV 67

Graphical Analysis

Some ways to analyze data graphically

Dot plots

Scatter plots

Box plots

Histograms

VV 68

Analytical Analysis

Mean and Median

Range, Variance and Standard Deviation

VV 69

Analyze Phase - Graphical Analysis

Dot Plots:

To display variation in a process.

Shows location and spread of data and it also identifies outliers

For plotting this, put a horizontal axis for the measurements and place a dot for

each data point and when the dots are very close, it can be stacked.

20 25 30

VV 70

Analyze Phase

Box Plot: (Tukey)

The Box plot helps in visually comparing the averages and variability

of two or more data sets. It also identifies outliers.

A Box (Whisker) Plot is an easy way of comparing the mean, quartiles,

and outliers of different data sets

Aids in understanding the distribution of the data and to get a quick,

graphical comparison of two processes.

Outlier *

Maximum observation

75th percentile

25th percentile

Minimum observation

VV 71

Analyze Phase

Scatter Plot: Shows the relationship between one variable and another

Visually indicate strength of correlation

Communicate positive/negative sense of correlation

To Plot:

Collect more paired samples

Vertical axis, effect variable

strong relationship)

VV 72

Analyze Phase

Run chart

attention on changes in the process

To plot

Manually...

Determine what you want to measure

Determine period of time to measure and in what time

increments

Create a graph (vertical axis= occurrences, horizontal axis= time

Collect data and plot

VV 73

Analyze Phase

Pareto Charts

Purpose: To compare how frequently different causes occur or

how much each cause costs your organization

or to set priorities

arrange data in descending order

Manually

Draw a Pareto chart outline

horizontal axis: categories of problems

vertical axis: units of measure

Draw a bar for each category to height on vertical axis

Plot the cumulative totals and calculate the percentage

Analyze results

VV 74

Analyze Phase

Histogram: Depicts distribution and shape of data, gaps and outliers

Characteristics of a Bar Chart and counts the number of data points in specified

intervals

To Plot:

Count the number of data points

Determine the range (R) for entire set

Divide range value into classes (K)

Determine class width (H) (H=R/K)

Determine class boundary, end point: (1st point = lowest data value + H)

Construct frequency table based on values computed in previous step

Construct a histogram based on frequency table

VV 75

Process Capability

Cp = USL-LSL

spread (USL - LSL) to the potential process spread

(6 times the within-subgroup standard deviation). 6

Cp does not consider the location of the process mean in relation to the specification

interval. It is a measure of the capability the process could achieve if centered between

the specification limits.

Cpk considers the location of the process mean relative to the specification interval.

It is a measure of how the process is actually performing.

3 3

VV 76

SPC - Control Charts

What is a Control Chart?

A control chart is a statistical tool used to distinguish between

variation in a process resulting from Common Causes and

variation resulting from Special causes.

It presents a graphic display of process stability or instability over

time. Process stability is defined as a state in which a process has

displayed a certain degree of consistency in the past and is expected

to continue to do so in the future.

A control chart is a graphic recording to monitor, control and improve

process performance by studying variation and its source

Focuses attention on detecting and monitoring variation over time

Serves as a tool for on going control of a process

Helps to improve a process to perform consistently and predictably

Provides a common language for discussing process performance

VV 77

SPC - Control Charts

Why use control chart?

It is simple to use

Enables synthesis, visualizations and interpretation of data

Enables to a large extent about what is going to happen

Helps in taking correct decisions at the right time

Control Limits represent the Voice of the Process

Control Limits are representative of the amount of expected variation in the

system/process

While every process displays Variation, some processes display controlled

variation, while other processes display uncontrolled variation

Controlled Variation is characterized by a stable and consistent pattern of variation

over time (associated with Common Causes)

Uncontrolled Variation is characterized by variation that changes over time

(associated with Special Causes)

VV 78

SPC - Control Charts

Type of

Data

(Count or Classification) (Continuous Measurement)

Defectives

size = 1 is small is large

(usually 3 to 5) (usually > 10)

subgroup subgroup subgroup subgroup size

I-MR X and R X and S

size, c >5 size size

chart chart chart

defects defects per defective of defective

unit units units

VV 79

SPC - Control Charts

Range Chart

X Bar Chart

UCL

UCL

X

R

LCL

LCL

X = Mean

R = Average Range

Monitor Changes Over Time

VV 80

SPC

Control Chart - The type varies based on the type of data (Variable and attribute data)

If a point lies outside the control limits, this deviation could be due to special causes

UCL and LCL are the control limits (+ or 3 sigma Values) which is 3 process standard

deviations above or below the average

Cause Variation Process

Average

Natural Variation LCL 3

(Common) Causes

Common causes - variation that are inherent in a process over time. They affect every

outcome of the process and everyone working in the process

Special causes - process variation that is not inherent in the process. Defined by Shewhart as

a fleeting event, not systemically related.

VV 81

Analyze Phase

FMEA:

It is invaluable in applications where processes or products have safety

or security issues and also equally applicable to any process (Process

FMEA) or product (Design FMEA) where failures have an impact on

customer satisfaction or business.

Key to reduce or eliminate the risk of failures

A structural way of identifying the potential ways or modes a product or process

can fail, the effect of the failure and what causes the failures

By this approach we can identify the impact of problem (Severity), the occurrence

(Probability) and how easy to detect (Detection)

This helps in reducing the risk by taking appropriate actions (corrective and

preventive)

With this we can prioritize the actions to eliminate the risk

VV 82

Analyze Phase

FMEA:

Severity (of Effect) - importance/impact of effect on

customer requirements (1=Not Severe, 10=Very Severe)

and creates Failure Mode. Can sometimes refer to the frequency of

a Failure Mode (1=Not Likely, 10=Very Likely)

Detection (capability of Current Controls) - ability of current control

scheme to detect:

- the causes before creating failure mode

- the failure modes before causing effect

(1=Likely to Detect, 10=Not Likely to Detect)

VV 83

Analyze Phase FMEA Steps

1. For each Process Step, list ways that it can vary or go wrong (Failure

Modes)

2. Identify Effects associated with each Failure Mode

3. List all Causes for each Failure Mode

4. List the Current Controls for each Cause

5. Create Severity, Occurrence, and Detection rating scales

6. Assign Severity, Occurrence and Detection ratings by going down

the FMEA in each of these columns.

7. Calculate the risk priority number for each potential Failure mode

scenario

8. Determine recommended actions, with responsible parties assigned

and estimated date of completion, to reduce High RPNs - Estimate

effect of Actions on RPN (PSEV, POCC, PDET).

9. Take appropriate actions and re-calculate all RPNs

VV 84

FMEA Common Mistakes

Confusion Between Causes & Effects (5 Whys)

Use the process steps to identify what could go wrong with that

process step.

Poor Estimation of SEV, OCC and DET

Ensure you have cross functional representation and use (or

agree to collect) as much data as is practical

Doing an FMEA on an Undocumented Process

On new processes, once a significant failure mode is identified,

someone often says we can prevent that by doing this. This

then leads to confusion on estimating the impact are you doing

it with the suggested change or without it?

Pareto on the causes not done.

More than one potential failure modes and causes appear in one cell (In the table)

VV 85

FAILURE MODE EFFECT ANALYSIS (FMEA)

Process Mode Effect Failure Occurrence Control Capability P

Causes N

These 3 factors are measured on a scale of 1 to 10

Severity can vary from no effect to hazardous or catastrophe

Occurrence can be very unlikely failure to very high and almost inevitable

Detection can be very easy detection to cannot detect or very low probability of detection

Use Pareto chart (80:20 Rule) of the FMEA RPNs and ensure which causes has a greater

impact

VV 86

Analyze Phase

Root Cause Analysis (RCA)

RCA is used to brainstorm and identify the root causes of the problems.

Root causes can be identified by asking Why multiple times (5 times thumb rule)

Fishbone Diagram

Measurements Process Technology

Problem Statement

Low Productivity

VV 87

Root Cause Analysis

5 Whys Level of problem. Related countermeasure.

Clean up the oil.

the shop floor.

Change the gasket specifications.

inferior material.

Because we got a good price on those

Change the purchasing policy.

gaskets.

Because the buyer is evaluated on Change the evaluation process

short-term cost savings. of the buyer.

Source: Jeffrey Liker, The Toyota Way, McGraw-Hill, 2004

Initial source: Peter Scholtes, The Leaders Handbook, McGraw-Hill, 1998.

Analyze Phase

Cause & Effect Matrix is used for prioritizing

process steps & inputs based on the impact on

process outputs & the customer needs

List all output variables

Rank and weight the output variables

List all input and process variables

Evaluate the strength of the relationship between output

and inputs/process variable the correlation factor

Cross-multiply weight and correlation factor

Prioritize and identify the vital few process steps / input

variables

VV 89

Analyze Phase - DOE

A properly designed experiment reveal, quantify and confirm the

underlying Y = f(x) relationship

Some of the terms used in DOE are:

Response (output Synonymous with Y)

Factors (the input variable we set for experiments xs)

Levels (2 or more variables we set for the factors)

Replications (repeating the experiment or parts of it to understand how much variation)

Runs (series of runs with predetermined values for each factor)

Key elements in DOE:

Planning the experiment before conducting it

Exploring the effect of more than one input variable at a time

Minimizing the number of runs in the experiment

Replicating key experimental conditions to assess variation

Accounting for factors that are not included in the experiment

VV 90

Analyze Phase - DOE

The type of experimental approach depends upon the current level of

knowledge of the process

DOE terminology:

Response Variable = Dependent Variable = Y

Factors = Independent Variables or Process Variables = xs

Levels = The settings of xs (usually low and high)

Main Effects = The change in Y caused by setting an x

Interaction Effects = The combined effect of two or more inputs

Treatment = A run of the experiment at particular level settings

VV 91

Analyze Phase - DOE

Experiments can be grouped into the following

general categories:

Trial and Error

One-Factor-at-a-Time

Full Factorial

Fractional Factorial

Others

Steps in DOE:

Identify the factors to be evaluated

Define the levels of the factors to be tested

Create an array of experimental combinations

Conduct an experiment under the prescribed conditions

Evaluate the results and conclusions

VV 92

Improve Phase

Develop new methods and ideas on how to solve the problem

Use those techniques to develop workable solutions

Criteria for selection of solutions

Ease of implementation

Cost to implement

Probability of achieving the goal

Long term benefits

Buy-in from senior management

Modify the Process

To-be-process

Implement Solutions

Planning

Piloting

Problem Prevention (Mistake proofing techniques)

VV 93

Improve Phase

Process Map (To-be in Improve phase)

Ys Step 1 output Ys Step 2 output

xs input A xs input C xs

input B input D

input E

Identify the process boundaries - start and stop

Document all steps in the process

List all inputs (xs in each step as CR for critical, C for controllable, N for noise, SOP for Std

operating Procedure)

List all outputs of each step

VV 94

FAILURE MODE EFFECT ANALYSIS (FMEA)

Process Taken (same as Prob. of action action

earlier) Occurrence Detection RPN

Capability

VV 95

Mistake Proofing

As FMEA helps in prevention and prediction of problems, mistake proofing emphasizes the

detection, and correction of mistakes before they become defects

It puts special attention on one constant threat to any process: Human Error

Mistake proofing is to pay critical attention to every activity in the process and to place

checks and problem prevention at each step

This is used for:

Fine tune improvements and process designs

Gather data from processes approaching six sigma performance

Eliminate the process issues and defects needed to raise the sigma level

Steps in Mistake Proofing:

Identify possible errors that might occur despite preventive actions

Determine a way to detect that an error is taking place or about to occur

Identify and select the type of action to be taken when an error is detected

Control, shutdown, warning

Coming up with methods to detect, self-correct, block/shutdown or warn of a problem

requires imagination and creativity

VV 96

Mistake Proofing

Mistake Proofing (known as Poka-Yoke)

Prevents inadvertent causes that results in failures using simple low

cost methods for prevention

It is a mechanism or procedure that prevents the mistake being made

or make it so obvious to eliminate it

Poka Yoke devices make it nearly impossible to make a mistake

Examples include:

Electrical connectors that are specially shaped to prevent reverse plug-in

Overflow prevention systems

Gas filling inlets for cars

Others could be color and shape, symbols and icons checklists, clear forms etc.

VV 97

Control Phase

The critical input xs and the output CTQs are the movers and shakers of the

process that align to the needs of customer

In the control phase, we monitor the CTQs and control the inputs, the critical xs

and when done properly this helps in sustaining the gains

The control methods may include:

checklists

mistake-proofing methods

statistical process control

any appropriate procedure like automated data collection and process execution technologies

sampling required

sampling frequency

proper feedback

For this:

Make a control Plan

Continuously monitor

Make appropriate modifications/corrections

Sustain the gains

VV 98

Control Phase

Control Plan:

A Control Plan is a tool to help manage the activity necessary for

control of the critical inputs enabling a process to continually meet

its product or service goals.

Control Plans document what to monitor, how, when, and by whom,

providing a simple and complete source of knowledge that is robust

to organization and personnel changes

VV 99

Control Phase

Control Plan Requires:

Knowing how to assure control

Understanding what questions Control Plans can help you answer

Assigning accountability

Keeping measures and standards visible

Observing out-of-control conditions

Implementing actions to bring the process back into control

Defining an action plan to sustain the goal

Knowing how to document the Control Plan

VV 100

Sample Control Plan

Variable method frequency (Measurer) actions

VV 101

Project Discussion

Determine the Big Y the area that needs improvement

Define the relevant Processes

Estimate the current performance

Find out the impact of the problem

Define a Project Charter

Use the basic tool set both soft tools (like TPM, Process Map,

FMEA, QFD, RCA) and Statistical tools

Modify the process (to-be-process)

Implement the new process

Estimate the Gain (Measure the output)

Have a control plan to sustain the gains.

VV 102

Project Discussion

Project ID

Project Title

Project Description

Project Team

Potential Areas Involved

Benefits

Define Response Variables

Measurements on Response Variables

Vital Few Identified

Define Phase Duration

Measure Phase Duration

Analysis Phase Duration

Improve Phase Duration

Control Phase Duration

Congratulate Your Team

VV 103

References

1. The Six Sigma Way

By: Peter S. Pande, Robert P. Neuman, Roland R. Cavanagh

Tata McGraw Hill, 2006

2. Six Sigma for Dummies

By: Craig Gygi, Neil DeCarlo, Bruce Williams

Wiley Publishing, Inc, 2006

3. The Six Sigma Handbook, Thomas Pyzdek and Paul

Keller, McGraw Hill, 3rd Edition, 2010

4. Statistical methods for Quality Improvement, Hitoshi

Kume, Productivity Press (India) Pvt Ltd, First Indian

Edition, 2006

VV 104

Six Sigma Course

A

Big

Thank You

VV 105

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