NPTEL Last Lecture on Problem Solving by Six Sigma

Achieving Operational Excellence by Six Sigma

Six Sigma Methodology

Goals and Objectives:

Understand the difference between a sporadic and a chronic quality problems. Enumerate the different phases of the six-sigma methodology and understand their purpose. Comprehend some basic qualitative tools that complement the six-sigma methodology.

You may start with Sporadic vs. Chronic Problems

Sporadic problems: adverse changes that are sudden and that can be restored in the short term. Chronic problems: need to be addressed with a longer term perspective. They can be very costly for the organizations. A structured and project approach is needed to address chronic problems.

Generic Project Tasks

Verifying the project need and mission. Diagnosing the causes. Providing a remedy (make the case of its effectiveness). Dealing with resistance to change. Instituting controls to hold the gains.

Six-Sigma Methodology

Statistical foundation: the process variations, given the product specifications, allows only 3.4 defects by millions of parts. The six-sigma methodology is related to projects that aim to improve processes through disciplined and data driven analysis.

There are two Six Sigma Methodologies

DMAIC to improve existing processes DMADV to develop new processes

DMAIC

Define Measure Analyze Improve Control Performance

Process Power: DMAICFive Step ProcessDefine

Control

Measure

Improve

Analyze

Six Sigma - The Process

Define Measure Analyze Improve Control

At GE, the DMAIC process is utilized for quality improvement of existing products and processes. A modified version of the process (DMADV) is utilized in new product and process design.

6 DMAIC ProcessInstitutionalize Improvement Control Deployment Quantify Financial Results Present Final Project Results and Lessons Learned Close Project Develop Charter and Business Case Map Existing Process Collect Voice of the Customer Specify CTQs / Requirements

Control

Define

Select Solution (Including Trade Studies, Cost/Benefit Analysis)

Improve Analyze

Measure

Measure CTQs / Requirements Determine Process Stability Determine Process Capability Calculate Baseline Sigma

Design SolutionPilot Solution Implement Solution Identify Root Causes Quantify Root Causes Verify Root Causes

Refine Problem Statement

DMAIC = Define, Measure, Analyze, Improve and Control

Strategy

Cookbook the steps Define the problem Select cross-functional team Define team charter

Tools & Concepts

Define MeasureProduct

1 Select CTQ Characteristics 2 Define Performance Standards 3 Validate Measurement System 4 Establish Product Capability 5 Define Performance Objectives 6 Identify Variation Sources 7 Screen Potential Causes 8 Discover Variable Relationships 9 Establish Operating Tolerances 10 Validate Measurement System 11 Determine Process Capability 12 Implement Process Controls

QFD Process Mapping Measurement Systems Benchmarking/Baselining Yield & Sigma Basic Quality Tools

Analyzeor

ImproveService

Design of Experiments Brainstorm & Workout

Control

Control Charts Procedures Training

DMAICeach step has a question

Define What is important? Measure How are we doing? Analyze What is wrong? Improve Fix whats wrong Control Ensure gains are maintained to guarantee performance

Define:

Clearly identify the problem Utilize numerical definition Focus on process that creates the problem not on the outcome

Definedoing it with excellence

Identify our internal and external customers Determine what our customers want Identify our suppliers Determine what we need from our suppliers Identify problems Identify the process that contributes to the problems Identify improvement opportunities Scope the improvement project

Select the right playersSet goals and objectives

Measure:

Benchmark Capability of a given process Focus on CTQ

Measuredoing it with excellence

Review the current process Identify key inputs and outputs Develop baseline and entitlement metrics Performance Cost Collect and organize data Evaluate the performance of the process Defects Cycle time Assess the amount of variation In the process In the measurement system

Analyze:

Current process results What is possible compared to what the competition is doing

Analyzedoing a great job here

Identify issues that occur at each step in the processAssess customer impact of problems Prioritize most critical inputs

Assess the effect on outputs or performanceDetermine root causes Generate solutions Select most likely solutions

Improve:

Implement changes Be creative to find new ways to do things better, cheaper, or faster

Improvethis is most critical!

Develop Action Items Prioritize improvements

Test solutionsDetermine best combination of inputs and controls

Refine solutions Document solutions Implement solutions

Control:

Lock in successes Implement measures to keep variables within the new operating limits

Controlsustaining your gains

Measure progress Capture and quantify benefits of the process improvements Document the project Communicate for organizational learning Recognize the teams efforts and success Monitor and manage to hold gains Adjust for continuous improvement

Recall Evolution of QA Methods

Six SigmaQuality Mgmt SystemsTaguchi

DOESPC Inspection 1930 1940 1975 1985 1990 1995 2000

Six Sigma DMAIC Model is most systematic!1.IDENTIFY OPPORTUNITIES

2.

FORM TEAM & SCOPE PROJECTEstablish Process Boundaries

3.

ANALYZE CURRENT PROCESSProcess Flow Analysis

4.

Process Flow Analysis

Identify Customers and Requirements Benchmarking

DEFINE DESIRED OUTCOMES FOR IMPROVED PROCESS

Define Performance Measures Agree on Goals Analyze Available Data Check SheetGOAL

Pareto Analysis A B C D

SURVEYYES NO

Tree Diagram

HISTORY REPORT

CHECK SHEET

9.

ACKNOWLEDGE TEAM AND COMMUNICATE RESULTSTEAM RESULTS

5.

IDENTIFY ROOT CAUSES & PROPOSED SOLUTIONSProcess Redesign Why-Why Diagram Nominal Group Technique

Brainstorming

REPORT

Cause & Effect Diagram

EFFECT

6.RECYCLE IF NECESSARY

PRIORITIZE, PLAN AND TEST PROPOSED SOLUTIONSLevel LoadingPRODUCTION DAYS

Design of Experiments90.00 83.67 77.33 71.00 64.67 CC+ AA+ CC+

8.

MEASURE PROGRESS & HOLD GAINSSPC

7.

1 2 3

30

REFINE AND IMPLEMENT SOLUTIONSForce Field Analysis

A B C D

Brainstorming Trend Chart

PhaseNEXT OPERATION

Step(s) 1&2 3&4 5 6&7 8&9

58.33 52.00

Pull System

GANTT Chart

Training & Procedures

PRIOR OPERATION

Define Measure Analyze Improve Control

Using Successive 6 Projects for Cycle Time and Defect ReductionHi

Low

Cycle Time and Defects Time

Six Sigma is really different!A look into DMAIC:

Problem Process Definition Measure to determine current Process Capability and Control (Mean and Deviation) How / What Methodology do we apply to Improve Implement Methodology / Action to Improve Action for continuous improvement and control

Six Sigma Qualitative Tools --soft, yet they are very useful!

Brainstorming and affinity diagram. Pareto analysis. Cause-effect diagram. Process mapping

Six Sigma Quantitative ToolsStatistical testing. Design for experiment. Control chart . Process capability . Reliability analysis ... And there are others

Tools & Templates by DMAIC PhaseToolAction Item/Implementation Plan Affinity Diagram Brainstorming Business Impact (ABM) Cause & Effect Matrix Check Sheet Control/Reaction Plan Control Chart Cycle Time Analysis Design of Experiment (DOE) Decision Matrix DPMO to Sigma Conversion Table Five Whys Failure Mode and Effects Analysis (FMEA) Force Field Analysis Four Up Histogram

Define Measure Analyze Improve ControlX X X X X X X X X X X X X X X X X X X X X X X X X X X

Note: The relationship between the specific tool and the DMAIC phase is based on most likely usage as opposed to possible usage.

Tools & Templates by DMAIC Phase continuedToolIshikawa (Fishbone) Measurement System Evaluation (MSE) Multivoting Pareto Chart Process Capability Process Costing Tool Process Maps Problem Statement/Critical Business Issue (CBI) Requirements Analysis Run Chart Scatter Diagram Sigma Calculator SIPOC Chart Story Board SWOT Analysis Team Charter Thought Process Map

Define Measure Analyze Improve ControlX X X X X X

X X X X X X X X X X X

X X

X X

X X X X

Note: The relationship between the specific tool and the DMAIC phase is based on most likely usage as opposed to possible usage.

Define - Team Charter This is a project!

What is the focus of the teams efforts? What are the boundaries (scope) of the effort? What is the expected outcome? Why is this important? Who are the key players?

Service Impacted Black Belt Green Belt Executive Sponsor Champion Start Date

The timely and accurate payment of commissions and collection of carrier payments

Division & Function Telephone Number(s) Telephone Number(s)

CitiStreet RSD Commissions, Finance Ext 2566 Ext 2477 Ext 2001 Ext 2014 Ext 2179 9/01/03

Pete Ferlita John Cirillo Bob Dughi Bill Valentine Andy Lovasz 1/1/