Six Sigma Exec Overview of project.ppt
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May 18, 2024
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About This Presentation
Six Sigma Exec Overview of project.ppt
Slide Content
1
© TLC, SSEO 1.5 22002
Thomas A. Little, Ph.D.
President, Thomas A. Little Consulting
© TLC, SSEO 1.5 22002
Thomas A. Little, Ph.D.
President, Thomas A. Little Consulting
2
© TLC, SSEO 1.5 22002
Audience
Presentation is designed for those Executives
and Managers who are considering
implementing Six Sigma and want to
understand its core concepts and benefits.
Provides an overview and orientation of six
sigma methodologies and organizational
requirements. The Executive Overview is
presented prior to six sigma implementation,
Champion and Black Belt training.
382 Stanwick Street
Brentwood, CA 94513
1-925-285-1847
[email protected]
www.dr-tom.com
© TLC, SSEO 1.5 22002
Audience
Presentation is designed for those Executives
and Managers who are considering
implementing Six Sigma and want to
understand its core concepts and benefits.
Provides an overview and orientation of six
sigma methodologies and organizational
requirements. The Executive Overview is
presented prior to six sigma implementation,
Champion and Black Belt training.
382 Stanwick Street
Brentwood, CA 94513
1-925-285-1847
[email protected]
www.dr-tom.com
3
© TLC, SSEO 1.5 22002
Objectives
As a result of attending this course the participant will
be able to:
•Describe the Six Sigma Breakthrough strategy
•Understand the Champion’s role in the Six Sigma Initiative
•Relate the roles and responsibilities of the Champion, Black Belt,
Green Belt and Team Members
•Identify projects with high probability for success
•Understand the DMAIC methodology and how it applies to
improvement projects
•Establish and utilize dashboard metrics
•Assist in project management and project goal completion
© TLC, SSEO 1.5 22002
Objectives
As a result of attending this course the participant will
be able to:
•Describe the Six Sigma Breakthrough strategy
•Understand the Champion’s role in the Six Sigma Initiative
•Relate the roles and responsibilities of the Champion, Black Belt,
Green Belt and Team Members
•Identify projects with high probability for success
•Understand the DMAIC methodology and how it applies to
improvement projects
•Establish and utilize dashboard metrics
•Assist in project management and project goal completion
4
© TLC, SSEO 1.5 22002
Presentation Outline
Section I Six Sigma Introduction
Section IIManagement and Organizational Infrastructure
for Six Sigma
Section IIIDMAIC Breakthrough Methodology
Section IVImplementation Strategy
© TLC, SSEO 1.5 22002
Presentation Outline
Section I Six Sigma Introduction
Section IIManagement and Organizational Infrastructure
for Six Sigma
Section IIIDMAIC Breakthrough Methodology
Section IVImplementation Strategy
5
© TLC, SSEO 1.5 22002
Section I
Section I Six Sigma Introduction
What is Six Sigma?
Three elements of Six Sigma
DMAIC roadmap
Expected benefits of Six Sigma
Corporate results of Six Sigma
© TLC, SSEO 1.5 22002
Section I
Section I Six Sigma Introduction
What is Six Sigma?
Three elements of Six Sigma
DMAIC roadmap
Expected benefits of Six Sigma
Corporate results of Six Sigma
6
© TLC, SSEO 1.5 22002
-6s -5s -4s -3s -2s -1s 0 +1s +2s +3s +4s +5s +6s
6sto LSL 6sto USL
Cp=2 Cpk=1.5Cp=2 Cpk=1.5
Cp=Cpk = 2
±1.5s
LSL
12.5% 12.5%
75%
3.4 DPMO 3.4 DPMO
USL
Technical Definition of Six Sigma
Technical Definition (Motorola)
Evolution to:
A Management driven, scientific methodology for product and
process improvement which creates breakthroughs in financial
performance and Customer satisfaction
© TLC, SSEO 1.5 22002
-6s -5s -4s -3s -2s -1s 0 +1s +2s +3s +4s +5s +6s
6sto LSL 6sto USL
Cp=2 Cpk=1.5Cp=2 Cpk=1.5
Cp=Cpk = 2
±1.5s
LSL
12.5% 12.5%
75%
3.4 DPMO 3.4 DPMO
USL
Technical Definition of Six Sigma
Technical Definition (Motorola)
Evolution to:
A Management driven, scientific methodology for product and
process improvement which creates breakthroughs in financial
performance and Customer satisfaction
7
© TLC, SSEO 1.5 22002
What is Six-Sigma?
•Management mandated and directed improvement
program focused on breakthroughsin financial
performance and customer satisfaction
•Uses Champions, Black Belts and Green Belts to
facilitate change
•Focused on core business and Customer needs
•A systematic method for process and product
improvement
•A Greek symbol for measuring performance
variation
•A metric for evaluating performance quality
•A standard of excellence (3.4 defects per million
opportunities)
© TLC, SSEO 1.5 22002
What is Six-Sigma?
•Management mandated and directed improvement
program focused on breakthroughsin financial
performance and customer satisfaction
•Uses Champions, Black Belts and Green Belts to
facilitate change
•Focused on core business and Customer needs
•A systematic method for process and product
improvement
•A Greek symbol for measuring performance
variation
•A metric for evaluating performance quality
•A standard of excellence (3.4 defects per million
opportunities)
8
© TLC, SSEO 1.5 22002
Customer Satisfaction + Efficient Systems =
Improved Profitability
Two types of projects to improve financial performance:
Increase Revenue “Grow the Business”
Improve Customer satisfaction, sales, capacity and market position
Decrease the Cost of Goods Sold
Reduce variation and defects
Improve yields
Understand root cause of issues and eliminate the source of problems
Automate process “workflow”
Improve process performance and reduce waste using lean principles
© TLC, SSEO 1.5 22002
Customer Satisfaction + Efficient Systems =
Improved Profitability
Two types of projects to improve financial performance:
Increase Revenue “Grow the Business”
Improve Customer satisfaction, sales, capacity and market position
Decrease the Cost of Goods Sold
Reduce variation and defects
Improve yields
Understand root cause of issues and eliminate the source of problems
Automate process “workflow”
Improve process performance and reduce waste using lean principles
9
© TLC, SSEO 1.5 22002
Center
Process
Reduce
Spread
Off-Target Too Much Variation
Centered
On-Target
The objective is to understand customer
requirements and reduce
process variation and defects
Reduce Process Variation & Defect Rates
© TLC, SSEO 1.5 22002
Center
Process
Reduce
Spread
Off-Target Too Much Variation
Centered
On-Target
The objective is to understand customer
requirements and reduce
process variation and defects
Reduce Process Variation & Defect Rates
10
© TLC, SSEO 1.5 22002
Breakthrough and Continuous Improvement
1 2 3 4 5
Breakthrough Strategy
© TLC, SSEO 1.5 22002
Breakthrough and Continuous Improvement
1 2 3 4 5
Breakthrough Strategy
11
© TLC, SSEO 1.5 22002
Three Emphasis Areas for Six Sigma
Focused on product design excellence, design for manufacturability,
Customer satisfaction and cost reduction within all components of the
development and new product introduction process.
Focused on operational excellence, Customer satisfaction and cost
reduction within all components of the operation. Areas of focus
include Sales, HR, Finance, Materials, etc.
Focused on product production excellence, variation and defect
reduction, lean production techniques, Customer satisfaction and
cost reduction within all components of the production and delivery
process.
Six Sigma touches on all aspects
of the Business Enterprise
© TLC, SSEO 1.5 22002
Three Emphasis Areas for Six Sigma
Focused on product design excellence, design for manufacturability,
Customer satisfaction and cost reduction within all components of the
development and new product introduction process.
Focused on operational excellence, Customer satisfaction and cost
reduction within all components of the operation. Areas of focus
include Sales, HR, Finance, Materials, etc.
Focused on product production excellence, variation and defect
reduction, lean production techniques, Customer satisfaction and
cost reduction within all components of the production and delivery
process.
Six Sigma touches on all aspects
of the Business Enterprise
12
© TLC, SSEO 1.5 22002
Past Improvement Activity Failure Modes
Unsuccessful Projects
No clear Management mandate
No roadmap for the project…
not sure where we are going
No dedicated resources
No Management and performance review
No ability to measure performance and
examine effectiveness… not sure if we
accomplished anything
No financial ROI during project definition
and measurement at completion
No clear answer as to “why are we doing
this project?”
© TLC, SSEO 1.5 22002
Past Improvement Activity Failure Modes
Unsuccessful Projects
No clear Management mandate
No roadmap for the project…
not sure where we are going
No dedicated resources
No Management and performance review
No ability to measure performance and
examine effectiveness… not sure if we
accomplished anything
No financial ROI during project definition
and measurement at completion
No clear answer as to “why are we doing
this project?”
13
© TLC, SSEO 1.5 22002
•Select and work on the most important
problems and projects to the business
and Customer
•Assure those projects impact customer
satisfaction and financial performance
•Allocate the time to get the work done
•Have your best people work on them
•Provide those individuals with all the
training, tools, and resources they need
to make the performance breakthrough
•Provide Management direction, support
and routine review of performance
•Require a well thought out, objective and
data driven solution
•Verify the dollar savings of your efforts
•Sustain the benefits of the solution over
time
What Makes Six Sigma Work?
© TLC, SSEO 1.5 22002
•Select and work on the most important
problems and projects to the business
and Customer
•Assure those projects impact customer
satisfaction and financial performance
•Allocate the time to get the work done
•Have your best people work on them
•Provide those individuals with all the
training, tools, and resources they need
to make the performance breakthrough
•Provide Management direction, support
and routine review of performance
•Require a well thought out, objective and
data driven solution
•Verify the dollar savings of your efforts
•Sustain the benefits of the solution over
time
What Makes Six Sigma Work?
14
© TLC, SSEO 1.5 22002
Six Sigma 3 Critical Elements
Defining and using business objectives and metricsthat
focus our attention on performance and defects that are most
important to the customerand have the greatest potential for
impacting the bottom line
Dedicated
resources and
focused
infrastructure,
trained in the
use of the 6
Sigma problem
solving and
process
improvement
methodology
Systematic
Approachto
improving
performance
and reducing
defects which
are important to
the customer
(qualitative &
statistical)
© TLC, SSEO 1.5 22002
Six Sigma 3 Critical Elements
Defining and using business objectives and metricsthat
focus our attention on performance and defects that are most
important to the customerand have the greatest potential for
impacting the bottom line
Dedicated
resources and
focused
infrastructure,
trained in the
use of the 6
Sigma problem
solving and
process
improvement
methodology
Systematic
Approachto
improving
performance
and reducing
defects which
are important to
the customer
(qualitative &
statistical)
15
© TLC, SSEO 1.5 22002
Strategic Business and Quality Metrics
Management objectives
and dashboard forms the
core of the strategic
Business & Quality
Metrics and is flowed
down to other
departments and process
areas to provide leading
and lagging indicators of
performance
CSI, Sales, delivery times, cost per
unit, Yield, DPU, DPMO, customer
response times, Web hit rates,
Rework/scrap rates, etc.
(Critical Business Elements)
© TLC, SSEO 1.5 22002
Strategic Business and Quality Metrics
Management objectives
and dashboard forms the
core of the strategic
Business & Quality
Metrics and is flowed
down to other
departments and process
areas to provide leading
and lagging indicators of
performance
CSI, Sales, delivery times, cost per
unit, Yield, DPU, DPMO, customer
response times, Web hit rates,
Rework/scrap rates, etc.
(Critical Business Elements)
16
© TLC, SSEO 1.5 22002
Level 1
Processes
Level 2
Processes
Level 3
Processes
Level 4
Processes
Executive
Dashboard
Hierarchy of Operational Dashboards
Director
Level
Manager
Level
Engineering
Level
Operator
Level
Can we see measurable
progress in our key
business critical metrics?
© TLC, SSEO 1.5 22002
Level 1
Processes
Level 2
Processes
Level 3
Processes
Level 4
Processes
Executive
Dashboard
Hierarchy of Operational Dashboards
Director
Level
Manager
Level
Engineering
Level
Operator
Level
Can we see measurable
progress in our key
business critical metrics?
17
© TLC, SSEO 1.5 22002
Six Sigma DMAIC Road Map
Define
Identify Project, Champion and Project Owner
Determine Customer Requirements and CTQs
Define Problem, Objective, Goals and Benefits
Define Stakeholder/Resource Analysis
Map the Process
Develop Project Plan
Measure
Determine Critical Xs and Ys
Determine Operational Definitions
Establish Performance Standards
Develop Data Collection and Sampling Plan
Validate the Measurements
Measurement Systems Analysis
Determine Process Capability and Baseline
Analyze
Benchmark the Process or Product
Establish Causal Relationships Using Data
Analysis of the Process Map
Determine Root Cause(s) Using Data
Improve
Design of Experiments
Develop Solution Alternatives
Assess Risks and Benefits of Solution Alternatives
Validate Solution using a Pilot
Implement Solution
Determine Solution Effectiveness using Data
Control
Statistical Process Control
Determine Needed Controls (measurement, design, etc.)
Implement and Validate Controls
Develop Transfer Plan
Realize Benefits of Implementing Solution
Close Project and Communicate Results
Key Analytical Tools
Process Mapping and
Modeling
Measurement Systems
Analysis & Process
Capability
Statistical Tests, Modeling
& Root Cause Analysis
Brainstorming
Design of Experiments,
FMEA, & Validation
Statistical Process Control
© TLC, SSEO 1.5 22002
Six Sigma DMAIC Road Map
Define
Identify Project, Champion and Project Owner
Determine Customer Requirements and CTQs
Define Problem, Objective, Goals and Benefits
Define Stakeholder/Resource Analysis
Map the Process
Develop Project Plan
Measure
Determine Critical Xs and Ys
Determine Operational Definitions
Establish Performance Standards
Develop Data Collection and Sampling Plan
Validate the Measurements
Measurement Systems Analysis
Determine Process Capability and Baseline
Analyze
Benchmark the Process or Product
Establish Causal Relationships Using Data
Analysis of the Process Map
Determine Root Cause(s) Using Data
Improve
Design of Experiments
Develop Solution Alternatives
Assess Risks and Benefits of Solution Alternatives
Validate Solution using a Pilot
Implement Solution
Determine Solution Effectiveness using Data
Control
Statistical Process Control
Determine Needed Controls (measurement, design, etc.)
Implement and Validate Controls
Develop Transfer Plan
Realize Benefits of Implementing Solution
Close Project and Communicate Results
Key Analytical Tools
Process Mapping and
Modeling
Measurement Systems
Analysis & Process
Capability
Statistical Tests, Modeling
& Root Cause Analysis
Brainstorming
Design of Experiments,
FMEA, & Validation
Statistical Process Control
18
© TLC, SSEO 1.5 22002
Process Flow for achieving 70%+ Improvement
Champion
Black Belt
Process or
Product
Select project that is
considered critical to
operational success
Form team and
follow DMAICfor
project management
Review
performance
and assure
results
Understand root
cause of problem
Develop alternative
solutions and
complete benefit
and risk assessment
Review and
approve
solutions
Validate
Solution
Implement and
standardize
process changes
Authorize
process
change
Determine
financial
benefit
Communicate
and celebrate
results
For a breakthrough to occur… everything is on the table
© TLC, SSEO 1.5 22002
Process Flow for achieving 70%+ Improvement
Champion
Black Belt
Process or
Product
Select project that is
considered critical to
operational success
Form team and
follow DMAICfor
project management
Review
performance
and assure
results
Understand root
cause of problem
Develop alternative
solutions and
complete benefit
and risk assessment
Review and
approve
solutions
Validate
Solution
Implement and
standardize
process changes
Authorize
process
change
Determine
financial
benefit
Communicate
and celebrate
results
For a breakthrough to occur… everything is on the table
19
© TLC, SSEO 1.5 22002
Six Sigma Results
Improved Customer satisfaction
•Assure products and services meet customer
requirements
Improved quality, efficiency and cost of goods sold
•Waste, defect and variation reduction
•Financial savings (hard and soft)
Self-sustaining infrastructure
•Defined roles and responsibilities
•Empower Champions, Black Belts and all employees to
make meaningful improvements in performance
•Communication
Commonality
•Language, training materials, tools & software
•Methodology
•Expectations
•Solutions
•Financial tracking (establish, maintain metrics)
© TLC, SSEO 1.5 22002
Six Sigma Results
Improved Customer satisfaction
•Assure products and services meet customer
requirements
Improved quality, efficiency and cost of goods sold
•Waste, defect and variation reduction
•Financial savings (hard and soft)
Self-sustaining infrastructure
•Defined roles and responsibilities
•Empower Champions, Black Belts and all employees to
make meaningful improvements in performance
•Communication
Commonality
•Language, training materials, tools & software
•Methodology
•Expectations
•Solutions
•Financial tracking (establish, maintain metrics)
20
© TLC, SSEO 1.5 22002
"We expect Six Sigma to elevate our company to an entirely new
level of operational performance, delivering $1.5 billion in EBIT
cumulatively by 2003 from the combined impact of revenue growth,
cost reductions and asset utilization."
-Dow 1999 Annual Reporthttp://www.dow.com/financial/99ann/letter03.htm
"We achieved $600 million in Six Sigma cost savings in 1999, but
cost savings are only one part of the story. Delighting customers and
accelerating growth completes the picture. When we are more
efficient and improve work flow throughout every function in the
company, we provide tremendous added value to our customers–
through higher quality solutions that are more competitively priced,
delivered on time and invoiced correctly. That makes us a more
desirable business partner."
-Honeywell 1999 Annual Reporthttp://www-a.honeywell.com/investor/ar99_intro_smarter.html
Honeywell & DOW Results
© TLC, SSEO 1.5 22002
"We expect Six Sigma to elevate our company to an entirely new
level of operational performance, delivering $1.5 billion in EBIT
cumulatively by 2003 from the combined impact of revenue growth,
cost reductions and asset utilization."
-Dow 1999 Annual Reporthttp://www.dow.com/financial/99ann/letter03.htm
"We achieved $600 million in Six Sigma cost savings in 1999, but
cost savings are only one part of the story. Delighting customers and
accelerating growth completes the picture. When we are more
efficient and improve work flow throughout every function in the
company, we provide tremendous added value to our customers–
through higher quality solutions that are more competitively priced,
delivered on time and invoiced correctly. That makes us a more
desirable business partner."
-Honeywell 1999 Annual Reporthttp://www-a.honeywell.com/investor/ar99_intro_smarter.html
Honeywell & DOW Results
21
© TLC, SSEO 1.5 22002
"Six Sigma implementation continues to gain momentum.At the end
of the year 2000, there were about 1,100 trained Black Belts and
over 3,400 active projects.The potential pretax benefit from active
projects was $700 million."
-DuPont Fourth Quarter and Full Year 2000 Earnings Reporthttp://www.dupont.com/corp/whats-new/releases/01/010124.html
GE & DuPont Results
"The Six Sigma initiative is in its fifth year —its fifth trip through the
operating system. From a standing start in 1996, with no financial
benefit to the Company, it has flourished to the point where it
produced more than $2 billion in benefits in 1999, with much more to
come this decade."
-GE 1999 Annual Reporthttp://www.ge.com/annual99/letter/letter_three.html
© TLC, SSEO 1.5 22002
"Six Sigma implementation continues to gain momentum.At the end
of the year 2000, there were about 1,100 trained Black Belts and
over 3,400 active projects.The potential pretax benefit from active
projects was $700 million."
-DuPont Fourth Quarter and Full Year 2000 Earnings Reporthttp://www.dupont.com/corp/whats-new/releases/01/010124.html
GE & DuPont Results
"The Six Sigma initiative is in its fifth year —its fifth trip through the
operating system. From a standing start in 1996, with no financial
benefit to the Company, it has flourished to the point where it
produced more than $2 billion in benefits in 1999, with much more to
come this decade."
-GE 1999 Annual Reporthttp://www.ge.com/annual99/letter/letter_three.html
22
© TLC, SSEO 1.5 22002
Section II
Section II Management Infrastructure for Six Sigma
Site Champion and Executive Staff
Hands on Champions
Master Black Belt
Black Belts / Green Belts
All Employees
© TLC, SSEO 1.5 22002
Section II
Section II Management Infrastructure for Six Sigma
Site Champion and Executive Staff
Hands on Champions
Master Black Belt
Black Belts / Green Belts
All Employees
23
© TLC, SSEO 1.5 22002
Interrelationship Digraph of Six Sigma Infrastructure
© TLC, SSEO 1.5 22002
Interrelationship Digraph of Six Sigma Infrastructure
24
© TLC, SSEO 1.5 22002
Site Champion and Executive Staff
Functions
Set the vision
Create the mandate for improvement
Initiate and fund the activity
Establish and maintain the reporting structure
Responsibilities (10%+ of time)
Identify Champions in each functional area
Monthly review of projects by Champion
Measure Champion results
Training
4 hour Executive Overview
2 day Champion Training
© TLC, SSEO 1.5 22002
Site Champion and Executive Staff
Functions
Set the vision
Create the mandate for improvement
Initiate and fund the activity
Establish and maintain the reporting structure
Responsibilities (10%+ of time)
Identify Champions in each functional area
Monthly review of projects by Champion
Measure Champion results
Training
4 hour Executive Overview
2 day Champion Training
25
© TLC, SSEO 1.5 22002
Hands-On Champion
Functions
Communicate the vision
Create the mandate for improvement
Provide direction and remove barriers
Achieve financial results and communicate
success
Responsibilities (10%+ of time)
Identify Black Belts and Green Belts
Identify and approve all Six Sigma projects
Biweekly review of all projects
Measure Black Belt performance
Training
2 day Champion Training
© TLC, SSEO 1.5 22002
Hands-On Champion
Functions
Communicate the vision
Create the mandate for improvement
Provide direction and remove barriers
Achieve financial results and communicate
success
Responsibilities (10%+ of time)
Identify Black Belts and Green Belts
Identify and approve all Six Sigma projects
Biweekly review of all projects
Measure Black Belt performance
Training
2 day Champion Training
26
© TLC, SSEO 1.5 22002
Master Black Belt
Functions
Provide technical expertise on Six Sigma and Lean
methodology to Black Belts and Green Belts
Work in support of the Black Belt and Champion
Assist in education and training activities
Responsibilities (100% of time)
Work daily with team members, Black Belts and
Champions
Participate in the review of projects
Monitor all Six Sigma projects
Training
15 day Black Belt Training, 2 years minimum as a
Black Belt and a Masters Degree in a related field
© TLC, SSEO 1.5 22002
Master Black Belt
Functions
Provide technical expertise on Six Sigma and Lean
methodology to Black Belts and Green Belts
Work in support of the Black Belt and Champion
Assist in education and training activities
Responsibilities (100% of time)
Work daily with team members, Black Belts and
Champions
Participate in the review of projects
Monitor all Six Sigma projects
Training
15 day Black Belt Training, 2 years minimum as a
Black Belt and a Masters Degree in a related field
27
© TLC, SSEO 1.5 22002
Black Belts and Green Belts
Functions
Black Belts 100% dedicated for 2 years to process
improvement, Green Belts 20%
Work on improvement projects with other Green
Belts and Team Members
Achieve financial results for each project Goal of
$350K+
Responsibilities (100 –20%+ of time)
Use the DMAIC methodology to create
breakthroughs in performance
Report progress to the Champion
Hold team meetings and provide excellent project
management
Work with the Master Black Belt
Training
15 day Black Belt Training
5 day Green Belt Training
© TLC, SSEO 1.5 22002
Black Belts and Green Belts
Functions
Black Belts 100% dedicated for 2 years to process
improvement, Green Belts 20%
Work on improvement projects with other Green
Belts and Team Members
Achieve financial results for each project Goal of
$350K+
Responsibilities (100 –20%+ of time)
Use the DMAIC methodology to create
breakthroughs in performance
Report progress to the Champion
Hold team meetings and provide excellent project
management
Work with the Master Black Belt
Training
15 day Black Belt Training
5 day Green Belt Training
28
© TLC, SSEO 1.5 22002
All Employees
Functions
Work to achieve excellence in daily work
Participate in Six Sigma projects
Support team activities
Identify opportunities for improvement
Responsibilities (5-10%+ of time)
Participate in Six Sigma activities as
requested
Complete action items as assigned by the
team
Attend team meetings
Training
1 day Six Sigma Employee training
© TLC, SSEO 1.5 22002
All Employees
Functions
Work to achieve excellence in daily work
Participate in Six Sigma projects
Support team activities
Identify opportunities for improvement
Responsibilities (5-10%+ of time)
Participate in Six Sigma activities as
requested
Complete action items as assigned by the
team
Attend team meetings
Training
1 day Six Sigma Employee training
29
© TLC, SSEO 1.5 22002
Section III
Section IIIDMAIC Breakthrough Methodology
Define
Measure
Analyze
Improve
Control
© TLC, SSEO 1.5 22002
Section III
Section IIIDMAIC Breakthrough Methodology
Define
Measure
Analyze
Improve
Control
30
© TLC, SSEO 1.5 22002
DMAIC Process Improvement Methodology
© TLC, SSEO 1.5 22002
DMAIC Process Improvement Methodology
31
© TLC, SSEO 1.5 22002
DMAIC Process
Metrics (Ys) linked to
CTQs
Definethe Problem
Project Objective
Project Goal
PROCESS
X
1
X
2
X
3
X
4
Y
1
Y
2
Y
3
EstablishControls on the critical Xsso
the improvements will be maintained
Identify ways
to improve
the process
and validate
the solution
Measure andAnalyze
data and process
performance to determine
the critical variables and
root cause of the problem
© TLC, SSEO 1.5 22002
DMAIC Process
Metrics (Ys) linked to
CTQs
Definethe Problem
Project Objective
Project Goal
PROCESS
X
1
X
2
X
3
X
4
Y
1
Y
2
Y
3
EstablishControls on the critical Xsso
the improvements will be maintained
Identify ways
to improve
the process
and validate
the solution
Measure andAnalyze
data and process
performance to determine
the critical variables and
root cause of the problem
32
© TLC, SSEO 1.5 22002
Six Sigma DMAIC Define
Define Activities
Identify Project, Champion and Project Owner
Determine Customer Requirements and CTQs
Define Problem, Objective, Goals and Benefits
Define Stakeholder/Resource Analysis
Map the Process
Develop Project Plan
Define Quality Tools
Project Charter and Plan
Effort/Impact Analysis
Process Mapping
Tree Diagram
© TLC, SSEO 1.5 22002
Six Sigma DMAIC Define
Define Activities
Identify Project, Champion and Project Owner
Determine Customer Requirements and CTQs
Define Problem, Objective, Goals and Benefits
Define Stakeholder/Resource Analysis
Map the Process
Develop Project Plan
Define Quality Tools
Project Charter and Plan
Effort/Impact Analysis
Process Mapping
Tree Diagram
33
© TLC, SSEO 1.5 22002
“Define” Flow
Effort/Impact
Analysis
VOC,
Examine
Candidate
Projects
Complete
SIPOC and
Process Map
Develop and
Approve Project
CharterDefine Customer
CTQsEffort / Impact Analysis
0
1
2
3
4
5
6
7
8
9
10
0 2 4 6 8 10 12
Effort
Impact
Impact BB ProjectsGB Projects Voice of
The Customer
Voice of Voice of
The CustomerThe Customer
Product
arrives on-time
Product Product
arrives onarrives on--timetime
Response
(Y)
ResponseResponse
(Y)(Y)
Operational
Definition
OperationalOperational
DefinitionDefinition
Specification
Limit(s)
SpecificationSpecification
Limit(s)Limit(s)
Error RateError RateError Rate
TargetTargetTarget
CTQ(s) SIX SIGMA
Project Charter
Resource Requirements General Information Review Schedule
Project No: Location: ActivityDate
Project Name: Business Start
Project Leader: Segment: D
GB/BB: Business M
Master BB: Objective: A
H/O Champion: Customer I
Team Members: Name Function % Time InitialsCTQ(s): C
Current Close
Process
Capability:Sigma, C
pk, DPMO, Cycle-time, etc.
Date:
Project Definition
Project Problem Statement:
Project Objective Statement:
Project Scope/Limitations:
Project Goals and Targets:
Project Plan:
See page 2 of the project charter. Project Plan and Gantt Chart
Expected Benefits: Time frame:
Hard Dollar Savings:
Soft Dollar Savings:
Strategic:
Other Benefits:
Stakeholder Approval
Hands On Champion: Master Black Belt:
Name: Name:
Signature: Signature:
Functional Manager: Black / Green Belt:
Name: Name:
Signature: Signature:
Other: Other:
Name: Name:
Signature: Signature:
Date: Suppliers Input Process (High Level) Output Customers
1 1 Start Point: 1 1
2 2
3 2 1
2 1 2
2 3 1
3 1 2
3 1 2 4 1
2 3 2
3 4 5 1
4 1 5 2
2 6 6 1
3 7 2
Add additional rows where needed 8
9
10
11
End Point:
© Thomas A. Little Consulting 2002
Who are the customers for
our product or service?
What are their
requirements for
performance
Determine the start and end points of the process
associated with the problem and the major steps
in the process.
What is the most
appropriate end point
for the process? What
product or service does
the process deliver to
the customer?
Who are the suppliers for our product
or service? How capable are they in
meeting our process requirements?
What must my
suppliers provide to
my process to meet
my needs?
Operation or Activity
© TLC, SSEO 1.5 22002
“Define” Flow
Effort/Impact
Analysis
VOC,
Examine
Candidate
Projects
Complete
SIPOC and
Process Map
Develop and
Approve Project
CharterDefine Customer
CTQsEffort / Impact Analysis
0
1
2
3
4
5
6
7
8
9
10
0 2 4 6 8 10 12
Effort
Impact
Impact BB ProjectsGB Projects Voice of
The Customer
Voice of Voice of
The CustomerThe Customer
Product
arrives on-time
Product Product
arrives onarrives on--timetime
Response
(Y)
ResponseResponse
(Y)(Y)
Operational
Definition
OperationalOperational
DefinitionDefinition
Specification
Limit(s)
SpecificationSpecification
Limit(s)Limit(s)
Error RateError RateError Rate
TargetTargetTarget
CTQ(s) SIX SIGMA
Project Charter
Resource Requirements General Information Review Schedule
Project No: Location: ActivityDate
Project Name: Business Start
Project Leader: Segment: D
GB/BB: Business M
Master BB: Objective: A
H/O Champion: Customer I
Team Members: Name Function % Time InitialsCTQ(s): C
Current Close
Process
Capability:Sigma, C
pk, DPMO, Cycle-time, etc.
Date:
Project Definition
Project Problem Statement:
Project Objective Statement:
Project Scope/Limitations:
Project Goals and Targets:
Project Plan:
See page 2 of the project charter. Project Plan and Gantt Chart
Expected Benefits: Time frame:
Hard Dollar Savings:
Soft Dollar Savings:
Strategic:
Other Benefits:
Stakeholder Approval
Hands On Champion: Master Black Belt:
Name: Name:
Signature: Signature:
Functional Manager: Black / Green Belt:
Name: Name:
Signature: Signature:
Other: Other:
Name: Name:
Signature: Signature:
Date: Suppliers Input Process (High Level) Output Customers
1 1 Start Point: 1 1
2 2
3 2 1
2 1 2
2 3 1
3 1 2
3 1 2 4 1
2 3 2
3 4 5 1
4 1 5 2
2 6 6 1
3 7 2
Add additional rows where needed 8
9
10
11
End Point:
© Thomas A. Little Consulting 2002
Who are the customers for
our product or service?
What are their
requirements for
performance
Determine the start and end points of the process
associated with the problem and the major steps
in the process.
What is the most
appropriate end point
for the process? What
product or service does
the process deliver to
the customer?
Who are the suppliers for our product
or service? How capable are they in
meeting our process requirements?
What must my
suppliers provide to
my process to meet
my needs?
Operation or Activity
34
© TLC, SSEO 1.5 22002
Voice of the Customer (VOC)
VOC is often full of emotions.
We need to restate customer
statements into fact based,
performance requirements
that we need to focus on
Of course… Customers
expect perfection
DMAIC
Methodology
Define
•Why don’t you guys learn how to
meet a schedule?
•Your service quality to poor
•When will you learn how to provide
service and a Customer first attitude?
•Why don’t you tell us when there is a
problem?
•I sent out e-mail after e-mail with no
response!
•Why do you try and make your
customers responsible for your
quality problems?
•Your RMA frequency is unacceptable
© TLC, SSEO 1.5 22002
Voice of the Customer (VOC)
VOC is often full of emotions.
We need to restate customer
statements into fact based,
performance requirements
that we need to focus on
Of course… Customers
expect perfection
DMAIC
Methodology
Define
•Why don’t you guys learn how to
meet a schedule?
•Your service quality to poor
•When will you learn how to provide
service and a Customer first attitude?
•Why don’t you tell us when there is a
problem?
•I sent out e-mail after e-mail with no
response!
•Why do you try and make your
customers responsible for your
quality problems?
•Your RMA frequency is unacceptable
35
© TLC, SSEO 1.5 22002
Performance to
Schedule
Deviation from schedule in
completed units
< 3.4 DPMO
Customer
Needs
Product
arrives on-time
Response
(Y)
Measure
Specification
Limit(s)
Allowable
defect
Rate
Target
100% of committed ships
prior to 5:00 pm as received
on Customer receiving dock
LSL = 0 hours late
USL = 6 hours early
Critical to Quality (CTQ) Characteristics
DMAIC
Methodology
Define
Customer
Requirement
Detailed
Specifications
Use the tree diagram to
define Customer CTQs
© TLC, SSEO 1.5 22002
Performance to
Schedule
Deviation from schedule in
completed units
< 3.4 DPMO
Customer
Needs
Product
arrives on-time
Response
(Y)
Measure
Specification
Limit(s)
Allowable
defect
Rate
Target
100% of committed ships
prior to 5:00 pm as received
on Customer receiving dock
LSL = 0 hours late
USL = 6 hours early
Critical to Quality (CTQ) Characteristics
DMAIC
Methodology
Define
Customer
Requirement
Detailed
Specifications
Use the tree diagram to
define Customer CTQs
36
© TLC, SSEO 1.5 22002
Moving to Specific Candidate Projects
Candidate
Six Sigma
Project(s)
With financial
impact!!!
Interview
Customers
(Internal and
External), on
core business
issues and
opportunities
for
improvement
Use Voice of
the Customer
when
collecting and
analyzing data
Complete
CTQ gap
analysis and
prioritization
Determine a
candidate
project list
Estimate
project
benefits in
financial and
measurable
terms & rank
projects by
their impact
Determine
the effort
required for
each project
Conduct effort to
impact analysis
and prioritize the
project list
Select the top
projects and
determine the
Champion
and Owner
DMAIC
Methodology
Define
Critically
examine
Business
Objectives
and select
projects
aligned to
them with
financial
impact and
benefits
Champions drive the project selection as they own the
business objectives aligned to the Executive Staff
© TLC, SSEO 1.5 22002
Moving to Specific Candidate Projects
Candidate
Six Sigma
Project(s)
With financial
impact!!!
Interview
Customers
(Internal and
External), on
core business
issues and
opportunities
for
improvement
Use Voice of
the Customer
when
collecting and
analyzing data
Complete
CTQ gap
analysis and
prioritization
Determine a
candidate
project list
Estimate
project
benefits in
financial and
measurable
terms & rank
projects by
their impact
Determine
the effort
required for
each project
Conduct effort to
impact analysis
and prioritize the
project list
Select the top
projects and
determine the
Champion
and Owner
DMAIC
Methodology
Define
Critically
examine
Business
Objectives
and select
projects
aligned to
them with
financial
impact and
benefits
Champions drive the project selection as they own the
business objectives aligned to the Executive Staff
37
© TLC, SSEO 1.5 22002
Potential Projects
Candidate Six
Sigma Project(s)
Project
Champion and
Owner
Determine a
candidate
project list and
potential
benefits:
Manufacturing
Materials
Management
NPI
Finance
Design
HR
Conduct
effort to
impact
analysis and
prioritize the
project listEffort / Impact Analysis
0
1
2
3
4
5
6
7
8
9
10
0 2 4 6 8 10 12
Effort
Impact
Impact ProjectEffortImpact
1 6 1
2 3 3
3 4 3
4 7 3
5 10 3
6 2 6
7 5 6
8 8 6
9 1 9
10 9 9
Projects with high impact are
preferred
DMAIC
Methodology
Define
© TLC, SSEO 1.5 22002
Potential Projects
Candidate Six
Sigma Project(s)
Project
Champion and
Owner
Determine a
candidate
project list and
potential
benefits:
Manufacturing
Materials
Management
NPI
Finance
Design
HR
Conduct
effort to
impact
analysis and
prioritize the
project listEffort / Impact Analysis
0
1
2
3
4
5
6
7
8
9
10
0 2 4 6 8 10 12
Effort
Impact
Impact ProjectEffortImpact
1 6 1
2 3 3
3 4 3
4 7 3
5 10 3
6 2 6
7 5 6
8 8 6
9 1 9
10 9 9
Projects with high impact are
preferred
DMAIC
Methodology
Define
38
© TLC, SSEO 1.5 22002
Detailed Project Selection Criteria
•Achieving breakthroughs requires prioritization of opportunities.
There are many more opportunities than there is time and
resources to work on them.
•When selecting a process, we are trying to prioritize exactly which
problem to solve. If the problem is clear we move on to define the
problem.
•In selecting a project, consider these issues:
a.Financial and strategic benefits
b.Improved customer satisfaction, CSI
c.Compatible with current goals and objectives
d.Translatable to other areas of the business
e.Probability of success
f.Level of effort, amount of resources needed to
complete project
DMAIC
Methodology
Define
© TLC, SSEO 1.5 22002
Detailed Project Selection Criteria
•Achieving breakthroughs requires prioritization of opportunities.
There are many more opportunities than there is time and
resources to work on them.
•When selecting a process, we are trying to prioritize exactly which
problem to solve. If the problem is clear we move on to define the
problem.
•In selecting a project, consider these issues:
a.Financial and strategic benefits
b.Improved customer satisfaction, CSI
c.Compatible with current goals and objectives
d.Translatable to other areas of the business
e.Probability of success
f.Level of effort, amount of resources needed to
complete project
DMAIC
Methodology
Define
39
© TLC, SSEO 1.5 22002
Example: Prioritizing Projects
Are your projects the things you like to do, easy to do or important to do?
DMAIC
Methodology
DefineRisk
Rank Potential Projects ChampionFinancialTranslatabilityDefinedSupports Clear Complexity p(S)Total
2Reduce lead time HC 9 9 9 9 6 6 3 80%
3Receiving process MP 6 9 6 3 9 6 9 77%
4Customer complaints DS 6 6 6 9 9 6 6 73%
5MRO material reduction LC 6 3 6 9 9 6 6 70%
6Change control system JM 6 9 0 6 6 6 6 63%
1Inventory reduction AB 9 9 9 9 9 9 6 93%
7Chip test yields JF 6 3 0 0 9 6 6 53%
0%
0%
0%
Project name
Manager
responsible
for results
Hard dollar
savings
Solutions are likely
to be applicable
across the site and
the corporation
Currently
defined
business
objective
Supports
immediate
goals and
objectives
for the org.
Clear problem
definition with
clear project
boundaries
Complexity is a
function of time to
complete and the
difficulty of the
problem. Scope
(target for BB
project is 7-8)
Probability
of success
3 < $100k 3 = local
6 = $300k6 = some external 3 = <3 months
9> $1M 9 = all locations 6= 4-5 months
9= 6+ months
© TLC, 2002
Business GoalsBenefits
© TLC, SSEO 1.5 22002
Example: Prioritizing Projects
Are your projects the things you like to do, easy to do or important to do?
DMAIC
Methodology
DefineRisk
Rank Potential Projects ChampionFinancialTranslatabilityDefinedSupports Clear Complexity p(S)Total
2Reduce lead time HC 9 9 9 9 6 6 3 80%
3Receiving process MP 6 9 6 3 9 6 9 77%
4Customer complaints DS 6 6 6 9 9 6 6 73%
5MRO material reduction LC 6 3 6 9 9 6 6 70%
6Change control system JM 6 9 0 6 6 6 6 63%
1Inventory reduction AB 9 9 9 9 9 9 6 93%
7Chip test yields JF 6 3 0 0 9 6 6 53%
0%
0%
0%
Project name
Manager
responsible
for results
Hard dollar
savings
Solutions are likely
to be applicable
across the site and
the corporation
Currently
defined
business
objective
Supports
immediate
goals and
objectives
for the org.
Clear problem
definition with
clear project
boundaries
Complexity is a
function of time to
complete and the
difficulty of the
problem. Scope
(target for BB
project is 7-8)
Probability
of success
3 < $100k 3 = local
6 = $300k6 = some external 3 = <3 months
9> $1M 9 = all locations 6= 4-5 months
9= 6+ months
© TLC, 2002
Business GoalsBenefits
40
© TLC, SSEO 1.5 22002
Develop Charter
•Problem
•Objective & Scope
•Goal/target
•Resource requirements
•Financial benefits
•Strategic benefits
•Team resources
•Project approval
In this step you will establish
direction for the project
by documentingSIX SIGMA
Project Charter
Resource Requirements General Information Review Schedule
Project No: Location: ActivityDate
Project Name: Business Start
Project Leader: Segment: D
GB/BB: Business M
Master BB: Objective: A
H/O Champion: Customer I
Team Members: Name Function % Time InitialsCTQ(s): C
Current Close
Process
Capability:Sigma, C
pk, DPMO, Cycle-time, etc.
Date:
Project Definition
Project Problem Statement:
Project Objective Statement:
Project Scope/Limitations:
Project Goals and Targets:
Project Plan:
See page 2 of the project charter. Project Plan and Gantt Chart
Expected Benefits: Time frame:
Hard Dollar Savings:
Soft Dollar Savings:
Strategic:
Other Benefits:
Stakeholder Approval
Hands On Champion: Master Black Belt:
Name: Name:
Signature: Signature:
Functional Manager: Black / Green Belt:
Name: Name:
Signature: Signature:
Other: Other:
Name: Name:
Signature: Signature:
Date:
DMAIC
Methodology
Define
© TLC, SSEO 1.5 22002
Develop Charter
•Problem
•Objective & Scope
•Goal/target
•Resource requirements
•Financial benefits
•Strategic benefits
•Team resources
•Project approval
In this step you will establish
direction for the project
by documentingSIX SIGMA
Project Charter
Resource Requirements General Information Review Schedule
Project No: Location: ActivityDate
Project Name: Business Start
Project Leader: Segment: D
GB/BB: Business M
Master BB: Objective: A
H/O Champion: Customer I
Team Members: Name Function % Time InitialsCTQ(s): C
Current Close
Process
Capability:Sigma, C
pk, DPMO, Cycle-time, etc.
Date:
Project Definition
Project Problem Statement:
Project Objective Statement:
Project Scope/Limitations:
Project Goals and Targets:
Project Plan:
See page 2 of the project charter. Project Plan and Gantt Chart
Expected Benefits: Time frame:
Hard Dollar Savings:
Soft Dollar Savings:
Strategic:
Other Benefits:
Stakeholder Approval
Hands On Champion: Master Black Belt:
Name: Name:
Signature: Signature:
Functional Manager: Black / Green Belt:
Name: Name:
Signature: Signature:
Other: Other:
Name: Name:
Signature: Signature:
Date:
DMAIC
Methodology
Define
41
© TLC, SSEO 1.5 22002
Develop Charter –Problem Statement
DMAIC
Methodology
Define
A clear description of the problem to
communicate to other people in the process
and rally support to improve it
•A description of the issue or problem
•What, when, where and how the problem occurs
•What is critical to quality (CTQ) from the customer
perspective? What is nonconforming to
specifications?
•Define the boundaries of the problem, how big is the
problem?
•What are the consequences of the problem to the
Company and or Customer?
•Do not state a solution when describing a problem
Description of
the “Pain”
© TLC, SSEO 1.5 22002
Develop Charter –Problem Statement
DMAIC
Methodology
Define
A clear description of the problem to
communicate to other people in the process
and rally support to improve it
•A description of the issue or problem
•What, when, where and how the problem occurs
•What is critical to quality (CTQ) from the customer
perspective? What is nonconforming to
specifications?
•Define the boundaries of the problem, how big is the
problem?
•What are the consequences of the problem to the
Company and or Customer?
•Do not state a solution when describing a problem
Description of
the “Pain”
42
© TLC, SSEO 1.5 22002
•What process will the team focus on?
•What are the boundaries of the process we are to improve?
Where does the process begin? Where does it end?
•Which customers will be affected / included
•What is outside of scope for the team?
•What constraints or timelines must the team work under?
Project Objective and Scope
State Objective and Scope
Customer or Suppliers Site or Line Process
DMAIC
Methodology
Define
Process 1
Process 2
Process 3
© TLC, SSEO 1.5 22002
•What process will the team focus on?
•What are the boundaries of the process we are to improve?
Where does the process begin? Where does it end?
•Which customers will be affected / included
•What is outside of scope for the team?
•What constraints or timelines must the team work under?
Project Objective and Scope
State Objective and Scope
Customer or Suppliers Site or Line Process
DMAIC
Methodology
Define
Process 1
Process 2
Process 3
43
© TLC, SSEO 1.5 22002
Goal Statement:
Reduce late shipment costs (Express Mail) to all
customers by 70% from $1.5M to $45K by January 200x.
Where When How Much
Goal Statement
Describe, in measurable terms, what success will look like when
you’ve solved the problem
Include a statement of the performance level that will satisfy your
CTQ and the time frame in which you plan to implement the
improvement. State targets and tolerances where appropriate.
DMAIC
Methodology
Define
© TLC, SSEO 1.5 22002
Goal Statement:
Reduce late shipment costs (Express Mail) to all
customers by 70% from $1.5M to $45K by January 200x.
Where When How Much
Goal Statement
Describe, in measurable terms, what success will look like when
you’ve solved the problem
Include a statement of the performance level that will satisfy your
CTQ and the time frame in which you plan to implement the
improvement. State targets and tolerances where appropriate.
DMAIC
Methodology
Define
44
© TLC, SSEO 1.5 22002
Determine Resources
DMAIC
Methodology
Define
Determine the Stakeholders
Who will need to be involved and at what
level for this project to be successful?
Determine Team Members
Who will need to be on the team and at
what % of their time?
Determine any Capital, Test or HR
Requirements
What materials, testing, software
programming, outside services or
equipment will be needed? Are those costs
acceptable to management?
Other Support to be Successful
© TLC, SSEO 1.5 22002
Determine Resources
DMAIC
Methodology
Define
Determine the Stakeholders
Who will need to be involved and at what
level for this project to be successful?
Determine Team Members
Who will need to be on the team and at
what % of their time?
Determine any Capital, Test or HR
Requirements
What materials, testing, software
programming, outside services or
equipment will be needed? Are those costs
acceptable to management?
Other Support to be Successful
45
© TLC, SSEO 1.5 22002
Project PlanSIX SIGMA Project Plan Project Name & Number:
Site: Location: Revision Date:
Problem Statement:
Improvement Objective and Scope:
Goal and Targets
Metric(s)
Benefits
BaselineGoal Improvement Goals
Date
Date
Date
Date
Tasks and Timelines Project
Phases Activity Assigned to: Start Date: End Date: Status: Review Date
Define
Project's Customer CTQ
Project Charter
SIPOC
Financial analysis of project's benefits
Detailed process map
Measure
Analyze
Improve
Control
Team Members
Team Leader: On Plan/On Schedule
Team BB: Behind Plan, with effort can return to schedule
Team Members: Behind Plan
Task Completed
Champion:
DMAIC
Methodology
Define
Project
plan
remains
through
the life of
the project
© TLC, SSEO 1.5 22002
Project PlanSIX SIGMA Project Plan Project Name & Number:
Site: Location: Revision Date:
Problem Statement:
Improvement Objective and Scope:
Goal and Targets
Metric(s)
Benefits
BaselineGoal Improvement Goals
Date
Date
Date
Date
Tasks and Timelines Project
Phases Activity Assigned to: Start Date: End Date: Status: Review Date
Define
Project's Customer CTQ
Project Charter
SIPOC
Financial analysis of project's benefits
Detailed process map
Measure
Analyze
Improve
Control
Team Members
Team Leader: On Plan/On Schedule
Team BB: Behind Plan, with effort can return to schedule
Team Members: Behind Plan
Task Completed
Champion:
DMAIC
Methodology
Define
Project
plan
remains
through
the life of
the project
46
© TLC, SSEO 1.5 22002
Benefits
Benefitsmay include any of the following:
•Hard dollar savings (cost reduction)
•Soft dollar savings (cost avoidance)
•Improved Customer satisfaction
•Improvement in the performance metrics (cycle time, yield,
defects, etc.)
•Improved job satisfaction (reduction in frustration)
•When considering benefits… what must change for the savings to
occur?
DMAIC
Methodology
Define
© TLC, SSEO 1.5 22002
Benefits
Benefitsmay include any of the following:
•Hard dollar savings (cost reduction)
•Soft dollar savings (cost avoidance)
•Improved Customer satisfaction
•Improvement in the performance metrics (cycle time, yield,
defects, etc.)
•Improved job satisfaction (reduction in frustration)
•When considering benefits… what must change for the savings to
occur?
DMAIC
Methodology
Define
47
© TLC, SSEO 1.5 22002
Financial Benefits ExampleCost Improvements Quantified:
Process
Curr Cost
($1,000's
per week)New Cost Improvement
Touch-up & Handsolder 73$ 70$ 95% 3.7$
Wash 24$ 23$ 95% 1.2$
QA/ Final Inspection 58$ 45$ 78% 12.5$
Rework 20$ 16$ 78% 4.4$
QA (QA Engineers) 5$ 4$ 78% 1.0$
Production Control/Expediting 27$ 26$ 95% 1.4$
Total per week for costs elements above 207$ 183$ per Week 24.2$
Total per Year 10,782 k$ 9,525 k$ per Year 1,257 k$
Determine costs of current baseline and the impact to cost if the goal is
achieved. Consider also the full impact to all effected lines and production
operations. If financial analysis shows poor ROI you may want to select
another project.
DMAIC
Methodology
Define
© TLC, SSEO 1.5 22002
Financial Benefits ExampleCost Improvements Quantified:
Process
Curr Cost
($1,000's
per week)New Cost Improvement
Touch-up & Handsolder 73$ 70$ 95% 3.7$
Wash 24$ 23$ 95% 1.2$
QA/ Final Inspection 58$ 45$ 78% 12.5$
Rework 20$ 16$ 78% 4.4$
QA (QA Engineers) 5$ 4$ 78% 1.0$
Production Control/Expediting 27$ 26$ 95% 1.4$
Total per week for costs elements above 207$ 183$ per Week 24.2$
Total per Year 10,782 k$ 9,525 k$ per Year 1,257 k$
Determine costs of current baseline and the impact to cost if the goal is
achieved. Consider also the full impact to all effected lines and production
operations. If financial analysis shows poor ROI you may want to select
another project.
DMAIC
Methodology
Define
48
© TLC, SSEO 1.5 22002
Begin Mapping the Process with a SIPOC
DMAIC
Methodology
Define
© TLC, SSEO 1.5 22002
Begin Mapping the Process with a SIPOC
DMAIC
Methodology
Define
49
© TLC, SSEO 1.5 22002
Move to a detailed Process Map
DMAIC
Methodology
Define
© TLC, SSEO 1.5 22002
Move to a detailed Process Map
DMAIC
Methodology
Define
50
© TLC, SSEO 1.5 22002
Model and Automate Workflow
Database
Discrete Transactions
Performance Monitoring and Improvement
JMPfor analysis
and root cause
determination
Workflow
Automation
© TLC, SSEO 1.5 22002
Model and Automate Workflow
Database
Discrete Transactions
Performance Monitoring and Improvement
JMPfor analysis
and root cause
determination
Workflow
Automation
51
© TLC, SSEO 1.5 22002
Begin Management/Champion Reviews
DMAIC
Methodology
Define
Once the project charter has
been approved and the team
formed around the project it is
essential to begin periodic
management reviews of project
performance.
Black Belts and Green Belts
meet with Management to
report performance.
Champions report to executive
staff on project performance.
Where possible integrate
reviews into current
management forums.
© TLC, SSEO 1.5 22002
Begin Management/Champion Reviews
DMAIC
Methodology
Define
Once the project charter has
been approved and the team
formed around the project it is
essential to begin periodic
management reviews of project
performance.
Black Belts and Green Belts
meet with Management to
report performance.
Champions report to executive
staff on project performance.
Where possible integrate
reviews into current
management forums.
52
© TLC, SSEO 1.5 22002
Six Sigma DMAIC Measure
Measure Activities
Determine Project Critical Xs and Ys
Determine Operational Definitions
Establish Performance Standards
Develop Data Collection and Sampling Plan
Validate the Measurements
Measurement Systems Analysis
Determine Process Capability and Baseline
Measure Quality Tools
Quality Function Deployment (QFD)
Measurement Systems Analysis (MSA)
Check sheet
Process Capability
DMAIC
Methodology
Measure
© TLC, SSEO 1.5 22002
Six Sigma DMAIC Measure
Measure Activities
Determine Project Critical Xs and Ys
Determine Operational Definitions
Establish Performance Standards
Develop Data Collection and Sampling Plan
Validate the Measurements
Measurement Systems Analysis
Determine Process Capability and Baseline
Measure Quality Tools
Quality Function Deployment (QFD)
Measurement Systems Analysis (MSA)
Check sheet
Process Capability
DMAIC
Methodology
Measure
53
© TLC, SSEO 1.5 22002
“Measure” Flow
Data Collection Plan
& Sample SizeList Of
Measures
(Xs and Ys)
Add
Specifications
and Compute
Sigma and
Capability
Restate
Improvement
GoalsData Collection Plan
Who will
Do it?
Type of Operational MeasurementData Tags NeededData Collection Person(s) What? Where? When? How Many?
MeasureMeasure Definition or Test Methodto Stratify the DataMethod Assigned
Name of X or YClear definition ofVisual Data tags are Manual? State What Location How The number
parameterattribute orthe measurement inspection defined for the Spreadsheet? who has measure is for often of data
or conditiondiscrete defined in such a or automatedmeasure. SuchComputer based? the being data the points
to be data, way as to achieve test? as: time, date, etc. responsibility?collectedcollectiondata collected
measuredproduct orrepeatable resultsTest instrumentslocation, tester, is per sample
process from multiple are defined. line, customer, collected
data observers buyer, operator,
Procedures for etc.
data collection
are defined.
Sample PlanDefine What to Measure Define How to Measure
MSA, GR&R,
Inspector
Effectiveness
Baseline
Goal
Data Collection,
Process Baseline
and Capability
Determination
© TLC, SSEO 1.5 22002
“Measure” Flow
Data Collection Plan
& Sample SizeList Of
Measures
(Xs and Ys)
Add
Specifications
and Compute
Sigma and
Capability
Restate
Improvement
GoalsData Collection Plan
Who will
Do it?
Type of Operational MeasurementData Tags NeededData Collection Person(s) What? Where? When? How Many?
MeasureMeasure Definition or Test Methodto Stratify the DataMethod Assigned
Name of X or YClear definition ofVisual Data tags are Manual? State What Location How The number
parameterattribute orthe measurement inspection defined for the Spreadsheet? who has measure is for often of data
or conditiondiscrete defined in such a or automatedmeasure. SuchComputer based? the being data the points
to be data, way as to achieve test? as: time, date, etc. responsibility?collectedcollectiondata collected
measuredproduct orrepeatable resultsTest instrumentslocation, tester, is per sample
process from multiple are defined. line, customer, collected
data observers buyer, operator,
Procedures for etc.
data collection
are defined.
Sample PlanDefine What to Measure Define How to Measure
MSA, GR&R,
Inspector
Effectiveness
Baseline
Goal
Data Collection,
Process Baseline
and Capability
Determination
54
© TLC, SSEO 1.5 22002
(Xs) Leading Process --> Product --> Lagging (Ys)
DPU/Yield
Scrap
Rework, RMA
Processing time
Wait time
Delivery time
Accuracy of transaction
Transaction time
Product or service quality
Inventory levels
Materials management
Manufacturing
Cost of Quality
Transaction Cycle
Time
Customer
satisfaction
Materials costs
XZY errors
Temperature
Offset
Viscosity
Pressure
Determining Critical Xs and Ys
Supplier,
Receiving
and Process
Times
Transactional
and product
defects and
errors by
operation
T&Cs,
planning
systems,
production
systems
© TLC, SSEO 1.5 22002
(Xs) Leading Process --> Product --> Lagging (Ys)
DPU/Yield
Scrap
Rework, RMA
Processing time
Wait time
Delivery time
Accuracy of transaction
Transaction time
Product or service quality
Inventory levels
Materials management
Manufacturing
Cost of Quality
Transaction Cycle
Time
Customer
satisfaction
Materials costs
XZY errors
Temperature
Offset
Viscosity
Pressure
Determining Critical Xs and Ys
Supplier,
Receiving
and Process
Times
Transactional
and product
defects and
errors by
operation
T&Cs,
planning
systems,
production
systems
55
© TLC, SSEO 1.5 22002
Translate
customer
requirements
into objective
measures
and prioritize
project
metrics
Using QFD to Prioritize and
Select Project Ys and XsProduct or Process:
Importance Delivery Time RMAs Customer Satisfaction Defect Rate Units delivered Cum Yield Unit Delivery Deviation from Commit Deviation from target on delivery time First Pass Yield Time to Schedule Confirmation
Customer Wants Total
Rapid schedule confirmation4 3 0 3 0 3 0 3 3 0 9 24
On time performance 1 9 0 6 0 3 3 3 9 3 3 39
Defect free products 2 0 9 6 9 0 3 0 0 6 0 33
Routine cost reduction 5 3 3 6 6 3 0 0 0 9 0 30
Routine WIP reduction 7 3 0 3 3 0 0 0 0 3 0 12
Minimum lead times 6 0 0 3 0 3 0 6 0 0 9 21
Total 18122718126121221210 0 0
Unit of Measure Min. # CSIPPM # % # Min.% Hrs.
Raw data available? Y Y Y Y Y Y Y Y Y N
Std. report available? Y Y Y Y Y Y N N N N
Reliable data source? Y Y Y Y Y Y N Y Y N
Frequency of the report? DailyWk Wk Wk DailyDailyDailyDailyDailyn/a
Needed frequecy? DailyWk Wk DailyDailyDailyDailyDailyShiftDaily
Target 5:00 0 5 0 Plan100% 0 0100%1 hr.
Lower Limit 4:45n/a4.5n/a5% 95% 1 -0:1550% n/a
Upper Limit 5:15 1 n/a1005% n/a 1 0:15n/a2 hr.
Measurement capability
Measurement validated?
Competitive comparison
Ranking 5 9 6 8 7 10 2 1 4 3
Relationship key: 9Strong relationship
6Moderate relationship
3Weak relationship
0No relationship
Current Measures Needed Measures
DMAIC
Methodology
Measure
© TLC, SSEO 1.5 22002
Translate
customer
requirements
into objective
measures
and prioritize
project
metrics
Using QFD to Prioritize and
Select Project Ys and XsProduct or Process:
Importance Delivery Time RMAs Customer Satisfaction Defect Rate Units delivered Cum Yield Unit Delivery Deviation from Commit Deviation from target on delivery time First Pass Yield Time to Schedule Confirmation
Customer Wants Total
Rapid schedule confirmation4 3 0 3 0 3 0 3 3 0 9 24
On time performance 1 9 0 6 0 3 3 3 9 3 3 39
Defect free products 2 0 9 6 9 0 3 0 0 6 0 33
Routine cost reduction 5 3 3 6 6 3 0 0 0 9 0 30
Routine WIP reduction 7 3 0 3 3 0 0 0 0 3 0 12
Minimum lead times 6 0 0 3 0 3 0 6 0 0 9 21
Total 18122718126121221210 0 0
Unit of Measure Min. # CSIPPM # % # Min.% Hrs.
Raw data available? Y Y Y Y Y Y Y Y Y N
Std. report available? Y Y Y Y Y Y N N N N
Reliable data source? Y Y Y Y Y Y N Y Y N
Frequency of the report? DailyWk Wk Wk DailyDailyDailyDailyDailyn/a
Needed frequecy? DailyWk Wk DailyDailyDailyDailyDailyShiftDaily
Target 5:00 0 5 0 Plan100% 0 0100%1 hr.
Lower Limit 4:45n/a4.5n/a5% 95% 1 -0:1550% n/a
Upper Limit 5:15 1 n/a1005% n/a 1 0:15n/a2 hr.
Measurement capability
Measurement validated?
Competitive comparison
Ranking 5 9 6 8 7 10 2 1 4 3
Relationship key: 9Strong relationship
6Moderate relationship
3Weak relationship
0No relationship
Current Measures Needed Measures
DMAIC
Methodology
Measure
56
© TLC, SSEO 1.5 22002
Larger is Better
All Processes Need Clear Specifications
Smaller is Better
Target zero and upper specification limit
USL
One-sided -lower specification limit only
LSL
Two-sided specifications
LSL USL
Target is Best
Performance Standards for Each Y
Unacceptable Good
Good Unacceptable
Unacceptable Good Unacceptable
DMAIC
Methodology
Measure
© TLC, SSEO 1.5 22002
Larger is Better
All Processes Need Clear Specifications
Smaller is Better
Target zero and upper specification limit
USL
One-sided -lower specification limit only
LSL
Two-sided specifications
LSL USL
Target is Best
Performance Standards for Each Y
Unacceptable Good
Good Unacceptable
Unacceptable Good Unacceptable
DMAIC
Methodology
Measure
57
© TLC, SSEO 1.5 22002
Elements for a data collection plan
Develop Data Collection Plan
Data means nothing… without an understanding of what the
data is, how it was collected, and the conditions under which it
was measured
Data properly collected and analyzed will help us to understand the
root cause(s) of the problemData Collection Plan
Who will
Do it?
Type of Operational MeasurementData Tags NeededData Collection Person(s) What? Where? When? How Many?
MeasureMeasure Definition or Test Methodto Stratify the DataMethod Assigned
Name of X or YClear definition ofVisual Data tags are Manual? State What Location How The number
parameterattribute orthe measurement inspection defined for the Spreadsheet? who has measure is for often of data
or conditiondiscrete defined in such a or automatedmeasure. SuchComputer based? the being data the points
to be data, way as to achieve test? as: time, date, etc. responsibility?collectedcollectiondata collected
measuredproduct orrepeatable resultsTest instrumentslocation, tester, is per sample
process from multiple are defined. line, customer, collected
data observers buyer, operator,
Procedures for etc.
data collection
are defined.
Sample PlanDefine What to Measure Define How to Measure
DMAIC
Methodology
Measure
© TLC, SSEO 1.5 22002
Elements for a data collection plan
Develop Data Collection Plan
Data means nothing… without an understanding of what the
data is, how it was collected, and the conditions under which it
was measured
Data properly collected and analyzed will help us to understand the
root cause(s) of the problemData Collection Plan
Who will
Do it?
Type of Operational MeasurementData Tags NeededData Collection Person(s) What? Where? When? How Many?
MeasureMeasure Definition or Test Methodto Stratify the DataMethod Assigned
Name of X or YClear definition ofVisual Data tags are Manual? State What Location How The number
parameterattribute orthe measurement inspection defined for the Spreadsheet? who has measure is for often of data
or conditiondiscrete defined in such a or automatedmeasure. SuchComputer based? the being data the points
to be data, way as to achieve test? as: time, date, etc. responsibility?collectedcollectiondata collected
measuredproduct orrepeatable resultsTest instrumentslocation, tester, is per sample
process from multiple are defined. line, customer, collected
data observers buyer, operator,
Procedures for etc.
data collection
are defined.
Sample PlanDefine What to Measure Define How to Measure
DMAIC
Methodology
Measure
58
© TLC, SSEO 1.5 22002
Collect Visual Data to See the Problem
Where possible use a Digital or Video Camera and
capture the defect or process problem. “A picture is
worth a thousand words in” understanding and
communication of the origin and nature of problems.
DMAIC
Methodology
Measure
© TLC, SSEO 1.5 22002
Collect Visual Data to See the Problem
Where possible use a Digital or Video Camera and
capture the defect or process problem. “A picture is
worth a thousand words in” understanding and
communication of the origin and nature of problems.
DMAIC
Methodology
Measure
59
© TLC, SSEO 1.5 22002
MSA for Validated Measurement
Long Term
Capability
Short Term
Capability
x
A
x
B
x
C
True Value
Repeatability
Reproducibility
Accuracy
Stability
First period of time Second period of time
xA
x
B
x
C
Useful for characterization of variable gages
and inspection capability
The data is only as good as the quality of the
measurements
DMAIC
Methodology
Measure
© TLC, SSEO 1.5 22002
MSA for Validated Measurement
Long Term
Capability
Short Term
Capability
x
A
x
B
x
C
True Value
Repeatability
Reproducibility
Accuracy
Stability
First period of time Second period of time
xA
x
B
x
C
Useful for characterization of variable gages
and inspection capability
The data is only as good as the quality of the
measurements
DMAIC
Methodology
Measure
60
© TLC, SSEO 1.5 22002
Six Sigma DMAIC Road Map
Analyze Activities
Benchmark the Process or Product
Establish Causal Relationships Using Data
Analysis of the Process Map
Determine Root Cause(s) Using Data
Analyze Quality Tools
Statistical analysis of data
Cause and effect or event diagram
Histogram
Pareto diagram
Run chart
Scatter graph
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
Six Sigma DMAIC Road Map
Analyze Activities
Benchmark the Process or Product
Establish Causal Relationships Using Data
Analysis of the Process Map
Determine Root Cause(s) Using Data
Analyze Quality Tools
Statistical analysis of data
Cause and effect or event diagram
Histogram
Pareto diagram
Run chart
Scatter graph
DMAIC
Methodology
Analyze
61
© TLC, SSEO 1.5 22002
Analyze Flow
Project Data
Xs and Ys
Root Cause
Analysis
Summary
% Explained and % Unexplained
Analysis and
Stratification of DataMeasure
Responses or Outputs (Ys) Factors (Xs)
Dependent Variable USLLSLTargetIndependent Variable(s) USLLSLTarget
© Thomas A. Little Consulting 2002
Root Cause
Validation
© TLC, SSEO 1.5 22002
Analyze Flow
Project Data
Xs and Ys
Root Cause
Analysis
Summary
% Explained and % Unexplained
Analysis and
Stratification of DataMeasure
Responses or Outputs (Ys) Factors (Xs)
Dependent Variable USLLSLTargetIndependent Variable(s) USLLSLTarget
© Thomas A. Little Consulting 2002
Root Cause
Validation
62
© TLC, SSEO 1.5 22002
Benchmarking
No company is the best at all it does. Typically
there are some core competencies that make a
company great. There is much to be learned
by benchmarking other companies who are the
best at what they do.
Benchmarking begins with identification of
the process or business area we wish to
examine.This should be clear from our
problem statement and objective.
Knowledge that there are other ways of doing
things can be obtained from benchmarking.
Benchmarking often speeds up the solution
generation process.
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
Benchmarking
No company is the best at all it does. Typically
there are some core competencies that make a
company great. There is much to be learned
by benchmarking other companies who are the
best at what they do.
Benchmarking begins with identification of
the process or business area we wish to
examine.This should be clear from our
problem statement and objective.
Knowledge that there are other ways of doing
things can be obtained from benchmarking.
Benchmarking often speeds up the solution
generation process.
DMAIC
Methodology
Analyze
63
© TLC, SSEO 1.5 22002
Root Cause Analogy
Like pulling weeds… unless we address
the root that causes the problem, poor
results will keep coming back.
Addressing the results or symptoms of a
problem will never provide lasting
solutions -given a little time… the
problem will come back
We need to understand the Root
Cause of the problem from our
problem statement
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
Root Cause Analogy
Like pulling weeds… unless we address
the root that causes the problem, poor
results will keep coming back.
Addressing the results or symptoms of a
problem will never provide lasting
solutions -given a little time… the
problem will come back
We need to understand the Root
Cause of the problem from our
problem statement
DMAIC
Methodology
Analyze
64
© TLC, SSEO 1.5 22002
Forward Problem Solving Versus Backwards
Forward
Problem Solving
Backwards
Problem Solving
No Idea of Root Cause
Strong Idea of Root Cause
Define Problem
Collect Problem Related Data
Analyze Data
Determine Root Cause(s)
Validate
Determine what is unexplained
Define Problem
List Probable Root Causes
Collect Supporting Data
Validate
Determine what is unexplained
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
Forward Problem Solving Versus Backwards
Forward
Problem Solving
Backwards
Problem Solving
No Idea of Root Cause
Strong Idea of Root Cause
Define Problem
Collect Problem Related Data
Analyze Data
Determine Root Cause(s)
Validate
Determine what is unexplained
Define Problem
List Probable Root Causes
Collect Supporting Data
Validate
Determine what is unexplained
DMAIC
Methodology
Analyze
65
© TLC, SSEO 1.5 22002
Goal is to
determine cause &
effect relationships
Evaluate Data to Determine Root Cause
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
Goal is to
determine cause &
effect relationships
Evaluate Data to Determine Root Cause
DMAIC
Methodology
Analyze
66
© TLC, SSEO 1.5 22002
Data VendorPurch.OrderMat.Week in
Collection AgentDate TypeQuarter ordered
Late
Deliveries
1
2
3
Vendor
# Late Items
0
5
10
15
20
25
IBM DEC HP NEC MOT
Material Type
# Late Items 0
20
40
60
80
100
Flex c.ConnectorsASICs SMT partsSolder
Purchasing Agent
# Late Items 0
5
10
15
20
25
Tom Shauna Kris Adam John
Stratify Data to Understand Root Cause
Stratification: Analysis of the same
data grouped and classified by the
data tags to examine frequencies at
different logical levels
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
Data VendorPurch.OrderMat.Week in
Collection AgentDate TypeQuarter ordered
Late
Deliveries
1
2
3
Vendor
# Late Items
0
5
10
15
20
25
IBM DEC HP NEC MOT
Material Type
# Late Items 0
20
40
60
80
100
Flex c.ConnectorsASICs SMT partsSolder
Purchasing Agent
# Late Items 0
5
10
15
20
25
Tom Shauna Kris Adam John
Stratify Data to Understand Root Cause
Stratification: Analysis of the same
data grouped and classified by the
data tags to examine frequencies at
different logical levels
DMAIC
Methodology
Analyze
67
© TLC, SSEO 1.5 22002
Collected X and Y data
Hypothesis testing
t-test
F-test
ANOVA
Chi-square
Logistical regression
Regression analysis and Model fitting
List Of Probable Root Causes and key process sensitivities
List Of Vital Few Xs and Critical Ys
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
Collected X and Y data
Hypothesis testing
t-test
F-test
ANOVA
Chi-square
Logistical regression
Regression analysis and Model fitting
List Of Probable Root Causes and key process sensitivities
List Of Vital Few Xs and Critical Ys
DMAIC
Methodology
Analyze
68
© TLC, SSEO 1.5 22002
Analysis of Data
Provides the ability to visualize the
relationship between process
variables and to understand the
source and fundamental behavior of
problems
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
Analysis of Data
Provides the ability to visualize the
relationship between process
variables and to understand the
source and fundamental behavior of
problems
DMAIC
Methodology
Analyze
69
© TLC, SSEO 1.5 22002
Analyze the Process Map for Waste
When Mapping the Process Consider the Following:
What you think it is...What it actually is...What it could be...
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
Analyze the Process Map for Waste
When Mapping the Process Consider the Following:
What you think it is...What it actually is...What it could be...
DMAIC
Methodology
Analyze
70
© TLC, SSEO 1.5 22002
Check List for Root Cause Determination
Measurement
Poor repeatability
Poor reproducibility
Poor accuracy
Poor stability
Poor linearity
Invalid measurement or test method
Excessive test or measurement
Methods
Incorrect definition
Incorrect sequence
Missing definitions, implicit rules
Poor process controls
Poor measurement controls
Lack of critical information
Incorrect information
Excessive queues or out-time
Handling
Orientation
Poor management of change
Incorrect revision
Machine (process & test)
Machine maintenance or calibration
Machine controls or lack of controls
Machine fault or defect
Software or network fault
Machine related contamination
Machine tooling or fixtures
Incorrect machine or tester
Materials
Defective
Off-specification
Contaminated
Improper storage conditions
Labeling or identification
Incorrect amount or quantity
Improper transportation or handling
Expiration date exceeded or unknown
Problem with product design
Wrong materials
Environment
Physical environment (temperature, lighting, ESD)
Security or safety systems
Distractions in the environment
Particulates
Contamination
People
Level of staffing
Training
Competency or experience
Supervision
Conflicting goals
Compliance with procedures
Personality issues
Physical ability or function
Cognitive ability and function
Knowledge deficit
Communication with peers or supervisor
Check and investigate all those that apply to the problem under consideration
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
Check List for Root Cause Determination
Measurement
Poor repeatability
Poor reproducibility
Poor accuracy
Poor stability
Poor linearity
Invalid measurement or test method
Excessive test or measurement
Methods
Incorrect definition
Incorrect sequence
Missing definitions, implicit rules
Poor process controls
Poor measurement controls
Lack of critical information
Incorrect information
Excessive queues or out-time
Handling
Orientation
Poor management of change
Incorrect revision
Machine (process & test)
Machine maintenance or calibration
Machine controls or lack of controls
Machine fault or defect
Software or network fault
Machine related contamination
Machine tooling or fixtures
Incorrect machine or tester
Materials
Defective
Off-specification
Contaminated
Improper storage conditions
Labeling or identification
Incorrect amount or quantity
Improper transportation or handling
Expiration date exceeded or unknown
Problem with product design
Wrong materials
Environment
Physical environment (temperature, lighting, ESD)
Security or safety systems
Distractions in the environment
Particulates
Contamination
People
Level of staffing
Training
Competency or experience
Supervision
Conflicting goals
Compliance with procedures
Personality issues
Physical ability or function
Cognitive ability and function
Knowledge deficit
Communication with peers or supervisor
Check and investigate all those that apply to the problem under consideration
DMAIC
Methodology
Analyze
71
© TLC, SSEO 1.5 22002
State the problem, then ask why did this problem occur until
you reach root cause.
Missing Parts on the Board During NPI
WHAT?
Why?
Why?
Why?
Why?
Why?
Improper cassette loadingMissing cassette Machine Malfunction
Failed to locate cassette Part not available
Supplier problemOrder incorrect Lack of lead time
Design change Customer schedule
Design error Performance improvement
5 Whys Example
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
State the problem, then ask why did this problem occur until
you reach root cause.
Missing Parts on the Board During NPI
WHAT?
Why?
Why?
Why?
Why?
Why?
Improper cassette loadingMissing cassette Machine Malfunction
Failed to locate cassette Part not available
Supplier problemOrder incorrect Lack of lead time
Design change Customer schedule
Design error Performance improvement
5 Whys Example
DMAIC
Methodology
Analyze
72
© TLC, SSEO 1.5 22002
Root Cause is achieved when we have identified the sourceof
the problem (use the 5+ Why approach)
For any problem there are typically manyRoots. They vary in
frequency of occurrence. We need to know each root and their
associated frequency and or % of impact.
Proper Root Cause identification requires some explanationof
the failure mechanism based on understanding the process,
the physics, mechanics or chemistry. We must be able to
explain how changes in X cause changes in Y (otherwise we
don’t understand it!)
Root Cause is verified when we can recreateor manipulate
the problem
To fix the Root Cause it must be controllable
Knowing Root Cause does not assure we know the solutionto
the problem. Solutions can be formulated once we know the
root of the problem
Root Cause(s) Determination
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
Root Cause is achieved when we have identified the sourceof
the problem (use the 5+ Why approach)
For any problem there are typically manyRoots. They vary in
frequency of occurrence. We need to know each root and their
associated frequency and or % of impact.
Proper Root Cause identification requires some explanationof
the failure mechanism based on understanding the process,
the physics, mechanics or chemistry. We must be able to
explain how changes in X cause changes in Y (otherwise we
don’t understand it!)
Root Cause is verified when we can recreateor manipulate
the problem
To fix the Root Cause it must be controllable
Knowing Root Cause does not assure we know the solutionto
the problem. Solutions can be formulated once we know the
root of the problem
Root Cause(s) Determination
DMAIC
Methodology
Analyze
73
© TLC, SSEO 1.5 22002
List of Potential Root Causes
Final investigation needs to be made to determine if the
factors identified are actually the root cause of the problem
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
List of Potential Root Causes
Final investigation needs to be made to determine if the
factors identified are actually the root cause of the problem
DMAIC
Methodology
Analyze
74
© TLC, SSEO 1.5 22002
Summarize All Root Cause Analysis
For each possible root cause, determine those you will verify.
Summarize each possible root cause with the following codes:
Non Contributor (NC) Does not contribute to the problem
Possible Contributor (PC) A factor which may have an effect on
the response
Insufficient Data (ID) Not enough data to determine the
effect of the factor (may require additional effort)
Data not available (IDX) Data not available concerning the
factor
Root Cause (RC) Determined to be a root cause of
the problem
Non Controllable Root Cause (RCX)A root cause; however, outside the
control of the company, individual or
team
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
Summarize All Root Cause Analysis
For each possible root cause, determine those you will verify.
Summarize each possible root cause with the following codes:
Non Contributor (NC) Does not contribute to the problem
Possible Contributor (PC) A factor which may have an effect on
the response
Insufficient Data (ID) Not enough data to determine the
effect of the factor (may require additional effort)
Data not available (IDX) Data not available concerning the
factor
Root Cause (RC) Determined to be a root cause of
the problem
Non Controllable Root Cause (RCX)A root cause; however, outside the
control of the company, individual or
team
DMAIC
Methodology
Analyze
75
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Root Cause(s) Validation and Summary
•List all probable Root Cause(s)
•Rank them in terms of effect size
•Determine the additional tests
and or manipulation you plan to
use to validatethe factors (X)
which have the greatest effect on
the response (Y)
•Identify potential methods for
controlling the factors which
create the problem
•When validation is complete
summarize all selected Root
Cause(s) and their effect size
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
Root Cause(s) Validation and Summary
•List all probable Root Cause(s)
•Rank them in terms of effect size
•Determine the additional tests
and or manipulation you plan to
use to validatethe factors (X)
which have the greatest effect on
the response (Y)
•Identify potential methods for
controlling the factors which
create the problem
•When validation is complete
summarize all selected Root
Cause(s) and their effect size
DMAIC
Methodology
Analyze
76
© TLC, SSEO 1.5 22002
Root Cause Analysis ExampleRoot Cause(s) Analysis Summary
Analysis Method Completed Investigation % Validation Validation
Process Review Potential Factor Review Date Who? Method ResultEffect Method Date
Priority 1Residual Material in Bulk Fill 15-Mar Tien Review use logs for PKRC100%Test for residual material28-Mar
Process Map
Priority 3Wrong Materials 9-Mar Tien Review inventory use for PKNC 0%
Visual Analysis
Priority 4Improper use of SOP 12-Mar Kris Review SOP use on the lineNC 0%
Cause and Effect (Event) Analysis
Priority 2Invalid Assay 12-Mar Anna Verify Test Procedure NC 0%
NC - Non Contributor IDX - Data not available % Unexplained 0%
PC - Partial Contributor RC - Root Cause
ID - Insufficient Data RCX - Root Cause Not Controllable
DMAIC
Methodology
Analyze
© TLC, SSEO 1.5 22002
Root Cause Analysis ExampleRoot Cause(s) Analysis Summary
Analysis Method Completed Investigation % Validation Validation
Process Review Potential Factor Review Date Who? Method ResultEffect Method Date
Priority 1Residual Material in Bulk Fill 15-Mar Tien Review use logs for PKRC100%Test for residual material28-Mar
Process Map
Priority 3Wrong Materials 9-Mar Tien Review inventory use for PKNC 0%
Visual Analysis
Priority 4Improper use of SOP 12-Mar Kris Review SOP use on the lineNC 0%
Cause and Effect (Event) Analysis
Priority 2Invalid Assay 12-Mar Anna Verify Test Procedure NC 0%
NC - Non Contributor IDX - Data not available % Unexplained 0%
PC - Partial Contributor RC - Root Cause
ID - Insufficient Data RCX - Root Cause Not Controllable
DMAIC
Methodology
Analyze
77
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Six Sigma DMAIC Improve
Improve Activities
Develop Solution Alternatives
Assess Risks and Benefits of Solution Alternatives
Validate Solution using a Pilot
Implement Solution
Determine Solution Effectiveness using Data
Improve Quality Tools
Design of Experiments
Brainstorming
FMEA
Risk assessment
DMAIC
Methodology
Improve
© TLC, SSEO 1.5 22002
Six Sigma DMAIC Improve
Improve Activities
Develop Solution Alternatives
Assess Risks and Benefits of Solution Alternatives
Validate Solution using a Pilot
Implement Solution
Determine Solution Effectiveness using Data
Improve Quality Tools
Design of Experiments
Brainstorming
FMEA
Risk assessment
DMAIC
Methodology
Improve
78
© TLC, SSEO 1.5 22002
Improve Flow
Based on RCA
Brainstorm Potential
Solutions, Costs,
Risks and Benefits
Implement changes
and determine
improved process
capability.
Examine
opportunities for
standardization
and translation
Design Experiments
where appropriate
Review and approve
solutions with
Management
Test and Validate
solutionsInstalled
New
Process
Equipment
DPU
Reach
Goals?
Y
N
DMAIC
Methodology
Improve
© TLC, SSEO 1.5 22002
Improve Flow
Based on RCA
Brainstorm Potential
Solutions, Costs,
Risks and Benefits
Implement changes
and determine
improved process
capability.
Examine
opportunities for
standardization
and translation
Design Experiments
where appropriate
Review and approve
solutions with
Management
Test and Validate
solutionsInstalled
New
Process
Equipment
DPU
Reach
Goals?
Y
N
DMAIC
Methodology
Improve
79
© TLC, SSEO 1.5 22002
Use general brainstorming techniques to generate
process and design change ideas which will eliminate the
root cause of the problem.
Separate ideas into short term and long term.Long term
with take 3 months or more to implement, short term is less
than 3 months.
Use voting and management involvement to generate
consensus on direction of approach
A single solution is not required at this point in the
improvement process. 2 -3 short term solutions should be
selected and ranked. 1 to 2 long term solutions should also
be selected for evaluation and experimentation.
Brainstorm Potential Solutions
DMAIC
Methodology
Improve
© TLC, SSEO 1.5 22002
Use general brainstorming techniques to generate
process and design change ideas which will eliminate the
root cause of the problem.
Separate ideas into short term and long term.Long term
with take 3 months or more to implement, short term is less
than 3 months.
Use voting and management involvement to generate
consensus on direction of approach
A single solution is not required at this point in the
improvement process. 2 -3 short term solutions should be
selected and ranked. 1 to 2 long term solutions should also
be selected for evaluation and experimentation.
Brainstorm Potential Solutions
DMAIC
Methodology
Improve
80
© TLC, SSEO 1.5 22002
Consider Solutions That Remove Process Waste
Seven muda:
1. Over productionahead of demand
2. Waitingfor the next process step or information
3. Transportingmaterials unnecessarily
4. Over processing
5. Inventory that is more than bare minimum
6. Motionby employees that is unnecessarily
7. Producingnon-conforming parts
For each area of waste, examine each process step to determine if
waste occurs in the operation and how to remove the waste from the
production system
DMAIC
Methodology
Improve
© TLC, SSEO 1.5 22002
Consider Solutions That Remove Process Waste
Seven muda:
1. Over productionahead of demand
2. Waitingfor the next process step or information
3. Transportingmaterials unnecessarily
4. Over processing
5. Inventory that is more than bare minimum
6. Motionby employees that is unnecessarily
7. Producingnon-conforming parts
For each area of waste, examine each process step to determine if
waste occurs in the operation and how to remove the waste from the
production system
DMAIC
Methodology
Improve
81
© TLC, SSEO 1.5 22002
Solutions Centered on Lean Methods
Production
Control
Material
Flow
Machine
Management
Workplace
Management
Process
Management
Reduce
inventories and
production
costs while
improving
quality
DMAIC
Methodology
Improve
© TLC, SSEO 1.5 22002
Solutions Centered on Lean Methods
Production
Control
Material
Flow
Machine
Management
Workplace
Management
Process
Management
Reduce
inventories and
production
costs while
improving
quality
DMAIC
Methodology
Improve
82
© TLC, SSEO 1.5 22002
Consider Solutions that Automate the Workflow
Database
Discrete Transactions
Performance Monitoring and Improvement
Periodic Management
Reports
JMPfor Analysis
Workflow
Automation
DMAIC
Methodology
Improve
© TLC, SSEO 1.5 22002
Consider Solutions that Automate the Workflow
Database
Discrete Transactions
Performance Monitoring and Improvement
Periodic Management
Reports
JMPfor Analysis
Workflow
Automation
DMAIC
Methodology
Improve
83
© TLC, SSEO 1.5 22002
DOE to Characterize, Improve the Process or
Product and Get Ready to Control
DMAIC
Methodology
Improve
Design experiments which improve the
robustness of the process. Improve process
parameter design, tolerance design and
reduce the source of defects.
Once experiments are
complete critical process
parameter sensitivities can
be modeled and determined
how to be targeted and
controlled.
© TLC, SSEO 1.5 22002
DOE to Characterize, Improve the Process or
Product and Get Ready to Control
DMAIC
Methodology
Improve
Design experiments which improve the
robustness of the process. Improve process
parameter design, tolerance design and
reduce the source of defects.
Once experiments are
complete critical process
parameter sensitivities can
be modeled and determined
how to be targeted and
controlled.
84
© TLC, SSEO 1.5 22002
•Assure solution costsand timelines are acceptable to
management
•Determine the complexityof each solution in terms of
time and ease of completion
•Identify potential impact(change to the baseline) of each
solution. Explain how each solution will address the root
cause and impact real change in performance.
•Financial benefit= benefit of solution –cost to
implement
•Assess the risksassociated with each solution and the
likelihood of occurrence
•Determine need to involve/notify customer concerning
any product or process changes
•Make sure that proper validation occurs associated with
the solution prior to across the board implementation
Evaluate Cost, Complexity, Impact,
Benefit and Risk for Each Solution
DMAIC
Methodology
Improve
© TLC, SSEO 1.5 22002
•Assure solution costsand timelines are acceptable to
management
•Determine the complexityof each solution in terms of
time and ease of completion
•Identify potential impact(change to the baseline) of each
solution. Explain how each solution will address the root
cause and impact real change in performance.
•Financial benefit= benefit of solution –cost to
implement
•Assess the risksassociated with each solution and the
likelihood of occurrence
•Determine need to involve/notify customer concerning
any product or process changes
•Make sure that proper validation occurs associated with
the solution prior to across the board implementation
Evaluate Cost, Complexity, Impact,
Benefit and Risk for Each Solution
DMAIC
Methodology
Improve
85
© TLC, SSEO 1.5 22002
Solution Evaluation FormSolution Evaluation Form
List Root Cause(s)List Solutions % EffectEstimated CostComplexityEstimated BenefitRisk* Priority Validation?
Root Cause 1 Solutions 1
% of cost time or savings High Order Need
effect of effort to due to Medium of potential to
solution solution implement solution or solution verify
will haveimplementationshort term? or Low implmentationeffectiveness
on the long term? improvement 1st, 2nd, 3rdof solution
root cause in customer
satisfaction
Root Cause 2
* Use Risk Assessment Form
Evaluate solution alternatives to assure
the bestsolution has been selected
DMAIC
Methodology
Improve
© TLC, SSEO 1.5 22002
Solution Evaluation FormSolution Evaluation Form
List Root Cause(s)List Solutions % EffectEstimated CostComplexityEstimated BenefitRisk* Priority Validation?
Root Cause 1 Solutions 1
% of cost time or savings High Order Need
effect of effort to due to Medium of potential to
solution solution implement solution or solution verify
will haveimplementationshort term? or Low implmentationeffectiveness
on the long term? improvement 1st, 2nd, 3rdof solution
root cause in customer
satisfaction
Root Cause 2
* Use Risk Assessment Form
Evaluate solution alternatives to assure
the bestsolution has been selected
DMAIC
Methodology
Improve
86
© TLC, SSEO 1.5 22002
Evaluating RiskRisk Assessment Form
List the Solution or Failure Mode Severity Probability Score Action OwnerDue
Major Elements of (What can go wrong) (1-10) (10 is (High scores Plan Date
Your Solution List each failure mode10 is Worstvery probable)need attention)
1. New Software a) Software does not link 10 6 60 Need to test database linkFred15-Feb
correctly to database early during implementationJames
b) Software is not available on 6 7 42
time Need to review progress Bill25-Feb
c) Software needs revisions 3 9 27 during weekly meeting Watson
prior to deployment
2. Solution a)
b)
c)
3. Solution a)
b)
Evaluate failure modes and probability
to minimize any negative effects of
changes to the product or process
DMAIC
Methodology
Improve
© TLC, SSEO 1.5 22002
Evaluating RiskRisk Assessment Form
List the Solution or Failure Mode Severity Probability Score Action OwnerDue
Major Elements of (What can go wrong) (1-10) (10 is (High scores Plan Date
Your Solution List each failure mode10 is Worstvery probable)need attention)
1. New Software a) Software does not link 10 6 60 Need to test database linkFred15-Feb
correctly to database early during implementationJames
b) Software is not available on 6 7 42
time Need to review progress Bill25-Feb
c) Software needs revisions 3 9 27 during weekly meeting Watson
prior to deployment
2. Solution a)
b)
c)
3. Solution a)
b)
Evaluate failure modes and probability
to minimize any negative effects of
changes to the product or process
DMAIC
Methodology
Improve
87
© TLC, SSEO 1.5 22002
Involve the Champion, Discuss with Management
Once the team has completed
their work it is now time to review
solutions with Management.
Allow the team to benefit from a
fresh perspective and add
Management’s insight and
experience to the priorities.
This step improves the alignment
of Management to the Teams
efforts
DMAIC
Methodology
Improve
© TLC, SSEO 1.5 22002
Involve the Champion, Discuss with Management
Once the team has completed
their work it is now time to review
solutions with Management.
Allow the team to benefit from a
fresh perspective and add
Management’s insight and
experience to the priorities.
This step improves the alignment
of Management to the Teams
efforts
DMAIC
Methodology
Improve
88
© TLC, SSEO 1.5 22002
Evaluate Improvements in Series
Implement one solution at a time. Allow for sufficient time
to determine effect, then move to next solution.
(miss, no change) (hit, improvement)
Installed
New
Process
Equipment
DPU
Retrained the
Workforce on
the Process
DMAIC
Methodology
Improve
© TLC, SSEO 1.5 22002
Evaluate Improvements in Series
Implement one solution at a time. Allow for sufficient time
to determine effect, then move to next solution.
(miss, no change) (hit, improvement)
Installed
New
Process
Equipment
DPU
Retrained the
Workforce on
the Process
DMAIC
Methodology
Improve
89
© TLC, SSEO 1.5 22002
Six Sigma DMAIC Road Map
Control Activities
Determine Needed Controls (measurement, design, etc.)
Implement and Validate Controls
Develop Transfer Plan
Realize Benefits of Implementing Solution
Close Project and Communicate Results
Control Quality Tools
Statistical Process Control
Out of Control Action Plan (OCAP)
Design Changes to eliminate the defect
DMAIC
Methodology
Control
© TLC, SSEO 1.5 22002
Six Sigma DMAIC Road Map
Control Activities
Determine Needed Controls (measurement, design, etc.)
Implement and Validate Controls
Develop Transfer Plan
Realize Benefits of Implementing Solution
Close Project and Communicate Results
Control Quality Tools
Statistical Process Control
Out of Control Action Plan (OCAP)
Design Changes to eliminate the defect
DMAIC
Methodology
Control
90
© TLC, SSEO 1.5 22002
“Control” Flow
Based on Solution,
Brainstorm
appropriate controls
to sustain the gains
Realize savings and
determine final
financial benefits
and ROI
Determine long
term owner and
close the project
Select SPC controls
where appropriate
Review and approve
control plan with
Management
Implement and
validate controlsCost Improvements Quantified:
Process
Curr Cost
($1,000's
per week)New Cost Improvement
Touch-up & Handsolder 73$ 70$ 95% 3.7$
Wash 24$ 23$ 95% 1.2$
QA/ Final Inspection 58$ 45$ 78% 12.5$
Rework 20$ 16$ 78% 4.4$
QA (QA Engineers) 5$ 4$ 78% 1.0$
Production Control/Expediting 27$ 26$ 95% 1.4$
Total per week for costs elements above 207$ 183$ per Week 24.2$
Total per Year 10,782 k$ 9,525 k$ per Year 1,257 k$
Determine costs of current baseline and the impact to cost if the goal is
achieved. Consider also the full impact to all effected lines and production
operations. If financial analysis shows poor ROI you may want to select
another project.
© TLC, SSEO 1.5 22002
“Control” Flow
Based on Solution,
Brainstorm
appropriate controls
to sustain the gains
Realize savings and
determine final
financial benefits
and ROI
Determine long
term owner and
close the project
Select SPC controls
where appropriate
Review and approve
control plan with
Management
Implement and
validate controlsCost Improvements Quantified:
Process
Curr Cost
($1,000's
per week)New Cost Improvement
Touch-up & Handsolder 73$ 70$ 95% 3.7$
Wash 24$ 23$ 95% 1.2$
QA/ Final Inspection 58$ 45$ 78% 12.5$
Rework 20$ 16$ 78% 4.4$
QA (QA Engineers) 5$ 4$ 78% 1.0$
Production Control/Expediting 27$ 26$ 95% 1.4$
Total per week for costs elements above 207$ 183$ per Week 24.2$
Total per Year 10,782 k$ 9,525 k$ per Year 1,257 k$
Determine costs of current baseline and the impact to cost if the goal is
achieved. Consider also the full impact to all effected lines and production
operations. If financial analysis shows poor ROI you may want to select
another project.
91
© TLC, SSEO 1.5 22002
0
5
10
15
20
25
1 9
17 25 33 41 49 57 65 73 81 89 97
105 113 121
Process
Improvement
Process
Improvement
Process
Improvement
No Controls
Benefits Of Control Phase
Improvement
Time
DMAIC
Methodology
Control
© TLC, SSEO 1.5 22002
0
5
10
15
20
25
1 9
17 25 33 41 49 57 65 73 81 89 97
105 113 121
Process
Improvement
Process
Improvement
Process
Improvement
No Controls
Benefits Of Control Phase
Improvement
Time
DMAIC
Methodology
Control
92
© TLC, SSEO 1.5 22002
Process Controls
TYPES of CONTROLS
Measurement Based Control Test & Inspection
Management Dashboards & Review Test (error prone)
Statistical Process Control Inspection (poor effectiveness and costly)
Documentation Periodic Checks
Process Flow Diagrams Scheduled Maintenance
Product Drawings, Schematics Scheduled Calibration
Process Management Plans Training and Operator Certification
Written Procedures Audits
Training Periodic Management Reviews
Design Incentives
Design out Product Problems Measures which are associated with a bonus
Mistake Proofing Measures which are associated with a penalty
Robust Design Concepts
DMAIC
Methodology
Control
© TLC, SSEO 1.5 22002
Process Controls
TYPES of CONTROLS
Measurement Based Control Test & Inspection
Management Dashboards & Review Test (error prone)
Statistical Process Control Inspection (poor effectiveness and costly)
Documentation Periodic Checks
Process Flow Diagrams Scheduled Maintenance
Product Drawings, Schematics Scheduled Calibration
Process Management Plans Training and Operator Certification
Written Procedures Audits
Training Periodic Management Reviews
Design Incentives
Design out Product Problems Measures which are associated with a bonus
Mistake Proofing Measures which are associated with a penalty
Robust Design Concepts
DMAIC
Methodology
Control
93
© TLC, SSEO 1.5 22002
Elements of a Control System
Sensor (measurement technology & control chart)
Allows the system to monitor the
current process performance
Alarm (control limits and trend rules)
Establish limit(s) and run rules
which require attention
Control Logic (OCAP)
A predefined set of actions to
follow that are alarm specific
Validate (next sample)
Assure the action was effective
Add alarms where needed and assure we do not ignore valid
alarms. SPC methods should be used to establish alarms.
DMAIC
Methodology
Control
© TLC, SSEO 1.5 22002
Elements of a Control System
Sensor (measurement technology & control chart)
Allows the system to monitor the
current process performance
Alarm (control limits and trend rules)
Establish limit(s) and run rules
which require attention
Control Logic (OCAP)
A predefined set of actions to
follow that are alarm specific
Validate (next sample)
Assure the action was effective
Add alarms where needed and assure we do not ignore valid
alarms. SPC methods should be used to establish alarms.
DMAIC
Methodology
Control
94
© TLC, SSEO 1.5 22002
Define Sustaining Requirements
Now that the solution is known and you are ready to finish the project….
•Determine the activities that need to continue after the team is dissolved
•Define who is doing them now… who should be the long term owner?
•Determine who needs to do them in a sustaining long term mode
•Define the set of tasksor systemsthat must be installed prior to
completing the project and backing out of the work
•What else will be needed to make the solution effective and sustainable?
•From the above issues, develop a transfer plan
What Vacuum will be
created when you leave?
DMAIC
Methodology
Control
© TLC, SSEO 1.5 22002
Define Sustaining Requirements
Now that the solution is known and you are ready to finish the project….
•Determine the activities that need to continue after the team is dissolved
•Define who is doing them now… who should be the long term owner?
•Determine who needs to do them in a sustaining long term mode
•Define the set of tasksor systemsthat must be installed prior to
completing the project and backing out of the work
•What else will be needed to make the solution effective and sustainable?
•From the above issues, develop a transfer plan
What Vacuum will be
created when you leave?
DMAIC
Methodology
Control
95
© TLC, SSEO 1.5 22002
Realize the Benefits of Improvement
How did you justify the cost savings for the project?
What changes will have to occur to create the
savings?
Based on the impact of the benefits of the solution
have you made changes to the process to realize the
benefits?
Possible Actions:
Re-deploy personnel
Reorganize the floor
Reduce inventory levels in Planning System
Eliminate inspection or test operations
Modify Vendor/Customer contracts
Other cost saving changes to the operation
DMAIC
Methodology
Control
© TLC, SSEO 1.5 22002
Realize the Benefits of Improvement
How did you justify the cost savings for the project?
What changes will have to occur to create the
savings?
Based on the impact of the benefits of the solution
have you made changes to the process to realize the
benefits?
Possible Actions:
Re-deploy personnel
Reorganize the floor
Reduce inventory levels in Planning System
Eliminate inspection or test operations
Modify Vendor/Customer contracts
Other cost saving changes to the operation
DMAIC
Methodology
Control
96
© TLC, SSEO 1.5 22002
Close the Project or Improvement Team
•The goals have been met and the team has been successful
•The solutions have all been implemented and demonstrated to be
effective
•Assure all documentation is complete
•Determine what standardization opportunities are available
•Make sure the accomplishments of the individual or team are
appropriately recognized personally and publicly
•Measure and communicate results of the project (benefits and savings)
•Celebrate! We did it!
DMAIC
Methodology
Control
© TLC, SSEO 1.5 22002
Close the Project or Improvement Team
•The goals have been met and the team has been successful
•The solutions have all been implemented and demonstrated to be
effective
•Assure all documentation is complete
•Determine what standardization opportunities are available
•Make sure the accomplishments of the individual or team are
appropriately recognized personally and publicly
•Measure and communicate results of the project (benefits and savings)
•Celebrate! We did it!
DMAIC
Methodology
Control
97
© TLC, SSEO 1.5 22002
Section IV
Section IV Implementation Strategy
© TLC, SSEO 1.5 22002
Section IV
Section IV Implementation Strategy
98
© TLC, SSEO 1.5 22002
How Do We Do It?
Define
Goal alignment
Roles and responsibilities
Develop
Assemble materials
Identify people
Select software
Select training/consulting resources
Deploy
Executive Overview
Champion training / black belt & project selection
Black Belt training / project execution
Management review of progress
Realize results
6s
© TLC, SSEO 1.5 22002
How Do We Do It?
Define
Goal alignment
Roles and responsibilities
Develop
Assemble materials
Identify people
Select software
Select training/consulting resources
Deploy
Executive Overview
Champion training / black belt & project selection
Black Belt training / project execution
Management review of progress
Realize results
6s
99
© TLC, SSEO 1.5 22002
Typical Six Sigma Implementation Timeline
Start 1
st
Wave March-August, 2002
1
st
Month
Six Sigma Executive Overview Training ½ day
Champion Selection
Champion Training 2 days
Select software (JMP) and schedule the training resource (ASQ-SVC)
Black Belt Selection and 1
st
Wave Six Sigma Projects
2
nd
Month
100% Commitment of Black Belts to Process Improvement
Begin Black Belt, Green Belt Training
2 days Define, 3 days Measure, 3 days Analyze, 3 days Improve, 3 days
Control, scheduled every three-four weeks for 5 sessions
Begin Management Review of Six Sigma projects
Select Master Black Belt (Hire or Contract)
6 + Months
Realize savings from 1
st
Wave, savings fund second wave etc.
Establish key metrics and dashboards if not present
Register in September for ASQ Certified Black Belt
2
nd
Wave –September 2002
© TLC, SSEO 1.5 22002
Typical Six Sigma Implementation Timeline
Start 1
st
Wave March-August, 2002
1
st
Month
Six Sigma Executive Overview Training ½ day
Champion Selection
Champion Training 2 days
Select software (JMP) and schedule the training resource (ASQ-SVC)
Black Belt Selection and 1
st
Wave Six Sigma Projects
2
nd
Month
100% Commitment of Black Belts to Process Improvement
Begin Black Belt, Green Belt Training
2 days Define, 3 days Measure, 3 days Analyze, 3 days Improve, 3 days
Control, scheduled every three-four weeks for 5 sessions
Begin Management Review of Six Sigma projects
Select Master Black Belt (Hire or Contract)
6 + Months
Realize savings from 1
st
Wave, savings fund second wave etc.
Establish key metrics and dashboards if not present
Register in September for ASQ Certified Black Belt
2
nd
Wave –September 2002
100
© TLC, SSEO 1.5 22002
Expected Cost/Benefits of One Wave of TrainingCost/Benefit Analysis of One Wave of Six Sigma
Costs
Training and Consulting Days Training Costs % of ROI
Executive Overview 0.5 1,475$ 0.0%
Champion Training 2 5,900$ 0.2%
Black Belt Training
Define 3 8,850$ 0.2%
Measure 3 8,850$ 0.2%
Analyze 3 8,850$ 0.2%
Improve 3 8,850$ 0.2%
Control 3 8,850$ 0.2%
Master Black Belt 50 60,000$ 1.7%
Total Training and Consulting Costs 111,625$ 3.1%
Employee Costs Number Days Labor Costs
Champions 5 60 60,000$ 1.7%
Black Belts 8 1056 844,800$ 23.4%
Green Belts 12 312 249,600$ 6.9%
1,154,400$ 32.0%
Benefits
Activity NumberSavings Total Benefits
Completed Projects15 325,000$ 4,875,000$
ROI (annualized) 3,608,975$
© TLC, SSEO 1.5 22002
Expected Cost/Benefits of One Wave of TrainingCost/Benefit Analysis of One Wave of Six Sigma
Costs
Training and Consulting Days Training Costs % of ROI
Executive Overview 0.5 1,475$ 0.0%
Champion Training 2 5,900$ 0.2%
Black Belt Training
Define 3 8,850$ 0.2%
Measure 3 8,850$ 0.2%
Analyze 3 8,850$ 0.2%
Improve 3 8,850$ 0.2%
Control 3 8,850$ 0.2%
Master Black Belt 50 60,000$ 1.7%
Total Training and Consulting Costs 111,625$ 3.1%
Employee Costs Number Days Labor Costs
Champions 5 60 60,000$ 1.7%
Black Belts 8 1056 844,800$ 23.4%
Green Belts 12 312 249,600$ 6.9%
1,154,400$ 32.0%
Benefits
Activity NumberSavings Total Benefits
Completed Projects15 325,000$ 4,875,000$
ROI (annualized) 3,608,975$
101
© TLC, SSEO 1.5 22002
Implementation Case StudySix Sigma Financial Analysis
3Q 4Q YTD
Total Department Expense 25,281.00$ 187,156.00$ 212,437.00$
Six Sigma Project Benefits
Alta -$ -$ -$
Quote on Hold Process -$ (5,074.13)$ (5,074.13)$
PN Reduction -$ -$ -$
Lost Units -$ (187.60)$ (187.60)$
Defective from Stock -$ -$ -$
FTF -$ 25,740.00$ 25,740.00$
Fed Ex Sweep -$ 71,867.04$ 71,867.04$
NEC RMA Optimization -$ 562,328.94$ 562,328.94$
CSP Warranty -$ 542,729.99$ 542,729.99$
Total Six Sigma Project Benefits -$ 1,197,404.24$ 1,197,404.24$
Results from one wave of training as verified by the Finance
department
© TLC, SSEO 1.5 22002
Implementation Case StudySix Sigma Financial Analysis
3Q 4Q YTD
Total Department Expense 25,281.00$ 187,156.00$ 212,437.00$
Six Sigma Project Benefits
Alta -$ -$ -$
Quote on Hold Process -$ (5,074.13)$ (5,074.13)$
PN Reduction -$ -$ -$
Lost Units -$ (187.60)$ (187.60)$
Defective from Stock -$ -$ -$
FTF -$ 25,740.00$ 25,740.00$
Fed Ex Sweep -$ 71,867.04$ 71,867.04$
NEC RMA Optimization -$ 562,328.94$ 562,328.94$
CSP Warranty -$ 542,729.99$ 542,729.99$
Total Six Sigma Project Benefits -$ 1,197,404.24$ 1,197,404.24$
Results from one wave of training as verified by the Finance
department
102
© TLC, SSEO 1.5 22002
ASQ-SVC & TLC Team Up for Training Excellence
Six Sigma Improvement
Programs for West
Coast Industries
The Statistical Discovery Software
TM
Workflow Modeling and Automation
Certified Black Belt
Exam Date:
October 19, 2002
Registration:
August 23, 2002
© TLC, SSEO 1.5 22002
ASQ-SVC & TLC Team Up for Training Excellence
Six Sigma Improvement
Programs for West
Coast Industries
The Statistical Discovery Software
TM
Workflow Modeling and Automation
Certified Black Belt
Exam Date:
October 19, 2002
Registration:
August 23, 2002
103
© TLC, SSEO 1.5 22002
JMP and Ultimus Software Support
JMPSoftware for
Windows and Macintosh
links statistics with
graphics, helping you
explore your data, make
discoveries and gain
knowledge for better
decision-making. See
why so may professional
choose JMPas their
quality-improvement tool
of choice for Six Sigma
and quality improvement.
Ultimussoftware allows for
effective process modeling,
analysis and automation.
Transactional modeling and
full workflow automation
tools are available using
Ultimus
®.
All ASQ-SVC Participants receive software use for six
months during their Six Sigma training
© TLC, SSEO 1.5 22002
JMP and Ultimus Software Support
JMPSoftware for
Windows and Macintosh
links statistics with
graphics, helping you
explore your data, make
discoveries and gain
knowledge for better
decision-making. See
why so may professional
choose JMPas their
quality-improvement tool
of choice for Six Sigma
and quality improvement.
Ultimussoftware allows for
effective process modeling,
analysis and automation.
Transactional modeling and
full workflow automation
tools are available using
Ultimus
®.
All ASQ-SVC Participants receive software use for six
months during their Six Sigma training
104
© TLC, SSEO 1.5 22002
Public and On-site Training
Champion Training
Six Sigma for Champions 16 hrs. $975 Mar/21-22/02
Black Belt Training and ASQ National Black Belt Certification
BB Six Sigma “Define” 16 hrs. $975 Apr/4-5/02
BB Six Sigma “Measure” 24 hrs. $1475 May/1-3/02
BB Six Sigma “Analyze” 24 hrs. $1475 Jun/5-7/02
BB Six Sigma “Improve” 24 hrs. $1475 Jul/10-12/02
BB Six Sigma “Control” 24 hrs. $1475 Aug/7-9/02
Green Belt Training
GB Six Sigma “Define” 8 hrs. $475 Apr/12/02
GB Six Sigma “Measure” 8 hrs. $475 May/10/02
GB Six Sigma “Analyze” 8 hrs. $475 Jun/14/02
GB Six Sigma “Improve” 8 hrs. $475 Jul/19/02
GB Six Sigma “Control” 8 hrs. $475 Aug/16/02
Low Cost, High Quality, Local Six Sigma Training
Location
Harmonic, Inc.
549 Baltic Way, Sunnyvale, CA.
2
nd
Wave begins in September
© TLC, SSEO 1.5 22002
Public and On-site Training
Champion Training
Six Sigma for Champions 16 hrs. $975 Mar/21-22/02
Black Belt Training and ASQ National Black Belt Certification
BB Six Sigma “Define” 16 hrs. $975 Apr/4-5/02
BB Six Sigma “Measure” 24 hrs. $1475 May/1-3/02
BB Six Sigma “Analyze” 24 hrs. $1475 Jun/5-7/02
BB Six Sigma “Improve” 24 hrs. $1475 Jul/10-12/02
BB Six Sigma “Control” 24 hrs. $1475 Aug/7-9/02
Green Belt Training
GB Six Sigma “Define” 8 hrs. $475 Apr/12/02
GB Six Sigma “Measure” 8 hrs. $475 May/10/02
GB Six Sigma “Analyze” 8 hrs. $475 Jun/14/02
GB Six Sigma “Improve” 8 hrs. $475 Jul/19/02
GB Six Sigma “Control” 8 hrs. $475 Aug/16/02
Low Cost, High Quality, Local Six Sigma Training
Location
Harmonic, Inc.
549 Baltic Way, Sunnyvale, CA.
2
nd
Wave begins in September
105
© TLC, SSEO 1.5 22002
Six Sigma for Champions
Six Sigma for Champions
Dates:March 21-22, 2002
Audience & Prerequisites:
Executive officers, Directors and Managers who will define and
manage Six Sigma Projects
Content:
Section I Six Sigma Introduction
Section II Management Infrastructure for Six Sigma, Roles and Responsibilities
Section III Managing the DMAIC process
Section IV Project Selection and Charter
Section V Implementation Issues, timelines and Black Belt, Green Belt selection
Section VIMeasures of Success
Location: Harmonic, Inc.
549 Baltic Way
Sunnyvale, CA
Bring your own laptop
© TLC, SSEO 1.5 22002
Six Sigma for Champions
Six Sigma for Champions
Dates:March 21-22, 2002
Audience & Prerequisites:
Executive officers, Directors and Managers who will define and
manage Six Sigma Projects
Content:
Section I Six Sigma Introduction
Section II Management Infrastructure for Six Sigma, Roles and Responsibilities
Section III Managing the DMAIC process
Section IV Project Selection and Charter
Section V Implementation Issues, timelines and Black Belt, Green Belt selection
Section VIMeasures of Success
Location: Harmonic, Inc.
549 Baltic Way
Sunnyvale, CA
Bring your own laptop
106
© TLC, SSEO 1.5 22002
Black Belt Six Sigma “Define”
Black Belt Six Sigma “Define”
Dates:April 4-5, 2002
Audience & Prerequisites:
Those individuals who will work on breakthrough projects as the
PRIMARYfocus of their work activities. All individuals are required to
have a project to work on and an identified Champion for the project.
Content:
Section I Six Sigma Introduction
Section II Identify Project, Champion and Owner
Section III Determine Customer Requirements and CTQs
Section IV Define Project Statement, Objectives, Goals and Benefits
Section V Define Resource/Stakeholder Analysis
Section VIDevelop Project Plan
Section VIIMap the Process
Section VIIIProject Leadership
Location: Harmonic, Inc.
549 Baltic Way
Sunnyvale, CA.
Bring your own laptop
© TLC, SSEO 1.5 22002
Black Belt Six Sigma “Define”
Black Belt Six Sigma “Define”
Dates:April 4-5, 2002
Audience & Prerequisites:
Those individuals who will work on breakthrough projects as the
PRIMARYfocus of their work activities. All individuals are required to
have a project to work on and an identified Champion for the project.
Content:
Section I Six Sigma Introduction
Section II Identify Project, Champion and Owner
Section III Determine Customer Requirements and CTQs
Section IV Define Project Statement, Objectives, Goals and Benefits
Section V Define Resource/Stakeholder Analysis
Section VIDevelop Project Plan
Section VIIMap the Process
Section VIIIProject Leadership
Location: Harmonic, Inc.
549 Baltic Way
Sunnyvale, CA.
Bring your own laptop
107
© TLC, SSEO 1.5 22002
Green Belt Six Sigma “Define”
Green Belt Six Sigma “Define”
Date:April 12, 2002
Audience & Prerequisites:
Those individuals who will work on breakthrough projects as the
SECONDARY focus of their work activities. All individuals are required
to have a project to work on and an identified Champion for the project.
Content:
Section I Six Sigma Introduction
Section II Determine Customer Requirements and CTQs
Section III Define Project Statement, Objectives, Goals and Benefits
Section IV Define Resource/Stakeholder Analysis
Section V Develop Project Plan
Section VIMap the Process
Location: Harmonic, Inc.
549 Baltic Way
Sunnyvale, CA.
Bring your own laptop
© TLC, SSEO 1.5 22002
Green Belt Six Sigma “Define”
Green Belt Six Sigma “Define”
Date:April 12, 2002
Audience & Prerequisites:
Those individuals who will work on breakthrough projects as the
SECONDARY focus of their work activities. All individuals are required
to have a project to work on and an identified Champion for the project.
Content:
Section I Six Sigma Introduction
Section II Determine Customer Requirements and CTQs
Section III Define Project Statement, Objectives, Goals and Benefits
Section IV Define Resource/Stakeholder Analysis
Section V Develop Project Plan
Section VIMap the Process
Location: Harmonic, Inc.
549 Baltic Way
Sunnyvale, CA.
Bring your own laptop
108
© TLC, SSEO 1.5 22002
Project Based and Value Oriented
All training is Hands On and applied to your company’s
projects. All training is done with computer applications.
Complete the training and complete a project.
Seating is limited! ~20 seats per class.
Registration Information
You can register on-line using www.asq-svc.org or www.dr-tom.com.
Or register for the Six Sigma public courses by contacting Tom Little
at (925)-285-1847 or by e-mail [email protected].
www.asq-svc.org
www.dr-tom.com
© TLC, SSEO 1.5 22002
Project Based and Value Oriented
All training is Hands On and applied to your company’s
projects. All training is done with computer applications.
Complete the training and complete a project.
Seating is limited! ~20 seats per class.
Registration Information
You can register on-line using www.asq-svc.org or www.dr-tom.com.
Or register for the Six Sigma public courses by contacting Tom Little
at (925)-285-1847 or by e-mail [email protected].
www.asq-svc.org
www.dr-tom.com
109
© TLC, SSEO 1.5 22002
Six Sigma Executive Overview Summary
•There are tremendous improvement and savings available to
companies in their operations if they will mobilize their
resources toward reduction of waste and improvement of
quality
•Six Sigma requires Leadership from the Executive Staff
•The roadmap is clear and the methods for improvement are
well defined
•Software tools make the data collection and analysis clear
•Development of an implementation and training plan is the
next step
© TLC, SSEO 1.5 22002
Six Sigma Executive Overview Summary
•There are tremendous improvement and savings available to
companies in their operations if they will mobilize their
resources toward reduction of waste and improvement of
quality
•Six Sigma requires Leadership from the Executive Staff
•The roadmap is clear and the methods for improvement are
well defined
•Software tools make the data collection and analysis clear
•Development of an implementation and training plan is the
next step
110
© TLC, SSEO 1.5 22002
Books:
E.L. Grant & R.S. Leavenworth, Statistical Quality Control(New York: NY, McGraw Hill, 1996).
D.C. Montgomery, Design and Analysis of Experiments.(New York: NY, John Wiley & Sons,
1996).
G.E. Box, J.S. Hunter & W.G. Hunter, Statistics for Experimenters: An Introduction to Design,
Data Analysis, and Model Building(New York: NY, John Wiley & Sons 1978).
Damelio, Robert. (1996). The Basics of Process Mapping. Productivity Press, Portland, OR.
Web Sites:
Thomas A. Little Consulting at www.dr-tom.com
ASQ Silicon Valley Section at www.asq-svc.org
Software: SAS JMP contact SAS Institute at www.jmpdiscovery.com
382 Stanwick Street
Brentwood, CA 94513
1-925-285-1847
[email protected]
www.dr-tom.com
References & Resources
© TLC, SSEO 1.5 22002
Books:
E.L. Grant & R.S. Leavenworth, Statistical Quality Control(New York: NY, McGraw Hill, 1996).
D.C. Montgomery, Design and Analysis of Experiments.(New York: NY, John Wiley & Sons,
1996).
G.E. Box, J.S. Hunter & W.G. Hunter, Statistics for Experimenters: An Introduction to Design,
Data Analysis, and Model Building(New York: NY, John Wiley & Sons 1978).
Damelio, Robert. (1996). The Basics of Process Mapping. Productivity Press, Portland, OR.
Web Sites:
Thomas A. Little Consulting at www.dr-tom.com
ASQ Silicon Valley Section at www.asq-svc.org
Software: SAS JMP contact SAS Institute at www.jmpdiscovery.com
382 Stanwick Street
Brentwood, CA 94513
1-925-285-1847
[email protected]
www.dr-tom.com
References & Resources
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