Quality and Statistic Tools

Literature PN 1307319

QUALITY TOOLS AND STATISTICS

REFERENCE GUIDE

03MAY05 Rev G

402 - 105

TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS

Rev. G

Tyco Electronics Six Sigma Operational Excellence 2100 Paxton Street Harrisburg, PA 17111 USA All rights reserved. This material is “company confidential” and is intended for internal use in Tyco Electronics only. Revision G, May 2005 Changes are made periodically to this document. Changes and technical updates will be added in subsequent editions.

Order from Literature Distribution Phone 717-558-1495Document # 402-105Literature Distribution # 1307319

402-105 TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS

__________________________________________________________________________________________________ Rev. G Six Sigma Operational Excellence 1

TYCO ELECTRONICS 8D Reactive Problem Solving Process

TYCO ELECTRONICS Reactive Problem Solving Process

What is it? The TYCO ELECTRONICS Reactive Problem Solving Process is a systematic process that describes, analyzes, and subsequently uncovers the root cause(s) of the problem. It is used to solve "past" actions that are now causing unwanted effects. Generally, it takes more time, energy, and resources to correct a problem than to prevent it. Problem Solving is a reactive process utilized by an individual or team for describing a problem, finding its root cause(s), and implementing corrective action/solution.

When to use it? • When there is a gap between the current state and the documented standard

• When the product does not meet the requirements of the print or the specifications

• When the process is out of control • When the customers require evidence of problem resolution

TYCO ELECTRONICS 8D REACTIVE PROBLEM SOLVING PROCESS 402-105

__________________________________________________________________________________________________ 2 Six Sigma Operational Excellence Rev. G

Reactive Problem Solving or Proactive Continuous Improvement: Which One?

The Seven Basic Quality Tools:

ChecksheetPareto DiagramFishboneRun ChartControl ChartHistogramScatter Diagram

Depends on the use of proven basic tools...

DO

ACT

CHECK

PLAN

PDCA

Successful Gap Closure

8D Reactive Problem Solving

8 Disciplined Steps

1. Define Concern2. Describe Problem3. Contain Problem4. Root Causes5. Corrective Action Plan6. Implement & Verify7. Prevent Recurrence8. Celebrate & Communicate

8D

12

345

6

78

When To Use?Customer ComplaintsProcess Out Of ControlStandards Aren’t Met

Successful Gap Closure

Benefits of Using a Systematic Problem Solving Process

Using a systematic approach to solve problems can help groups and

individuals avoid some of the common pitfalls of ineffective problem solving.

The benefits of this approach: • Effectively analyzes all aspects of the problem before developing a

conclusion • Gathers all critical data, either about the problem or about proposed

corrective actions/solutions • Tackles problems that are within the control of group members • Works on problems that are specific, manageable, and well defined • Develops satisfactory rationale for a corrective action/solution • Involves critical people - especially those outside the group - when

looking for corrective actions/solutions • Plans how to implement completely and evaluate the recommended

corrective action/solution successfully



The 8D Problem Solving Process

The eight steps of the Problem Solving Process are often shown as segments of a wheel. Although the eight steps are numbered, you seldom proceed from step 1 to 8 without making several loops back to revisit and revise earlier steps. Sometimes you inherit problems that have already been defined and perhaps analyzed by others. In answering the checklist questions posed at each step, and producing the outcomes associated with each of the steps, problem-solving groups go through a series of expansions and contractions. Expansions are idea-generating stages—points at which the group explores the diversity and creativity of all members. Contractions are idea sorting and selecting steps—points at which the group evaluates the ideas and agrees on the best ones. Throughout the 8D Problem Solving process, a team will use process and statistical tools. Process tools are thinking processes which require a unique set of steps, while statistical tools are validation and verification techniques used to display information in ways that make the most sense and are the easiest to use.

Objectives

Upon completion of this course, participants will be able to:

• Solve problems by performing the tasks within each step of 8D (8 Disciplines)

• Apply selected quality tools in performing 8D steps



TYCO ELECTRONICS Reactive Problem Solving Process (8D) Overview

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence

8Celebrate andCommunicate

Success

5Develop

CorrectiveAction Plan

6Implement &

VerifyCorrective

Action

ProblemSolvingProcess

(8D)

PLANACT

DOCHECK



TYCO ELECTRONICS Reactive Problem Solving Process (8D)

8D Step Issues To Be Addressed Expansion/Divergence

1. Define Concern, Organize and Plan

• What is our problem topic or opportunity?

• What is our objective? • Who do we need to work on the

problem? • What is our project plan? • What will our meeting and decision-

making process be?

• What is wrong with what? • Identify potential problem topics or

opportunities. • Develop list of potential problem

solving team members.

2. Describe the Opportunity/Problem

• What do we want to change? • Lots of problem statements for consideration.

3. Contain the Problem • What interim containment actions may be implemented to isolate the customer from the problem?

• Are we following the standards? • What is the implementation plan for

containment? • Were the interim action(s)

successful?

• Brainstormed list of potential interim actions for containment. • Include other part numbers that

were produced using the process and that may be defective.

• Include other processes that could cause a similar defect in this product.

• Include all potential locations where the product is stored.

4. Identify and Verify Root Causes

• What's preventing us from reaching the "desired state"?

• How could we reach the "desired state"?

• Lots of potential causes generated. • Lots of potential corrective

actions/solutions generated.

5. Develop Corrective Action Plan

• What's the best corrective action/ solution (or set of actions)?

• What's the best plan for implementation?

• Lots of criteria for evaluating potential corrective actions/solutions.

• Lots of ideas on how to implement and evaluate the selected corrective action(s)/solution(s).

6. Implement and

Verify Corrective Action

• Will the corrective action(s)/solution(s) help us reach the "desired state"?

7. Prevent Recurrence

• Are we following the plan? • Other applicable processes/tools.

8. Celebrate and Communicate Success

• How do we recognize contributions? • Is this a new Best Practice that

should be shared with others? • Who should be informed of the

outcome of the corrective action(s)/solution(s)?

• How do we communicate successes and future opportunities?

• Many recognition plans identified. • Many plans for communication

identified.



Contraction/Convergence What's Needed To Go To Next Step

• Small group of key players selected. • Problem or opportunity topic selected. • Project plan developed. • Boundaries of authority agreed upon.

• Key players contacted and committed to the project. • Champion identified. • Project plan in place.

• One problem statement, with "as is" and "desired state" agreed upon.

• "As is" and "desired state" described in measurable, observable terms.

• Gap identified. • Interim containment action(s) selected. • Containment plan developed.

• Plan implemented. • Effectiveness of interim containment action(s)

analyzed.

• Root cause(s) identified and verified. • Potential corrective actions/solutions clarified.

• Root cause(s) documented and ranked. • Root cause(s) selected. • Clarified potential corrective actions/solutions

documented.

• Criteria for evaluating corrective actions/solutions agreed upon.

• Corrective action(s)/solution(s) selected. • Implementation plans (including measures of

effectiveness, contingency plans, and pilot plans) agreed upon.

• Documented plan for implementing and verifying effectiveness of corrective action(s)/solution(s).

• Pilot test run. • Test data collected and analyzed.

• Analysis documented; implementation plan adjusted as necessary.

• Remove the containment action(s). • Control plan created. • Implementation plan monitored. • Continuing problems (if any) identified. • Recommended corrective action(s)/solution(s)

have other systematic applications.

• Ongoing corrective actions/solutions in place.

• Recognition strategy selected. • Employee list for sharing information created. • Communication plan selected.

• Recognition plan documented and implemented. • Employee list documented. • Communication plan documented and implemented.



TYCO ELECTRONICS Reactive Problem Solving Process (8D)

Problem Solving

Process Step

Desired Outcome

1. Define Concern, Organize and Plan

• Concern/problem topic identified. • Project plan in place for eliminating the problem and improving the

process including scope, key activities, boundaries, responsibilities, timelines, resources, etc.

2. Describe the Opportunity/Problem

• Problem statement written in terms of gap between "as is" and "desired state."

3. Contain the Problem

• Implement interim actions to shield the customer from the problem.

4. Identify and Verify Root Causes

• Selected root causes to work on. • Revised problem statement if required. • Produce list of as many ways as possible to solve problem.

5. Develop Corrective Action Plan

• Decide on optimum corrective action/solution and plan its implementation.

6. Implement and Verify Corrective Action

• Perform pilot test. • Evaluate effectiveness of corrective action/solution. • Document improvements. • Address open issues. • Remove the interim actions and the problem does not re-occur.

7. Prevent Recurrence

• Apply permanent "fix." • Modify and monitor to prevent recurrence of problem.

8. Celebrate and Communicate Success

• Contributions of everyone involved recognized. • Change or improvements communicated to all individuals who are

affected.



Define Concern, Organize and Plan

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)

PLANACT

DO

CHECK

“To solve a problem, it is necessary to think. It is necessary to think even to decide what to collect.”

— Robert Maynard Hutchins



STEP 1: Define concern, organize, and plan

Define Concern Organize and Plan

Ideas about problem

Information gathered

P

Collect data on production, sales,

employee/customer, surveys and feedback, reports, memos, etc. that would establish that a problem exists in a particular area. Determine if data indicates patterns or trends. Are the standards being adhered to?

Identify problem topic or opportunity. What is

the issue?

Relate topic to objectives, business impacts and processes.

Define purpose, objective, and scope of

project.

If needed, assemble a small team of 4-6

people.

Ensure that the team has a designated champion.

Identify problem topic or opportunity.

Define purpose, objective, and scope of

project.

Reach consensus on: - Charter/Key operating boundaries

Gather team's ideas and opinions about the

problem area.

Identify/define action plans.



Forming a Problem Solving Team

Who should be on a problem solving team

• Stakeholders who must support the corrective action/solution • People with knowledge (e.g., experts) • People accountable and responsible for problem area • Customer (s), if appropriate • Supplier(s), if appropriate Charter: Key operating boundaries

• What the team is expected to address • Resources available • Level of decision-making authority • Customer and customer requirements • Communications process Team Size

According to research conducted by R. Bales and E. Borgatta, team size can affect the following: • Group interaction • Group attitudes • Group commitment to achieving its goals When the group or team is small (four-to-six members), interaction is enhanced, members are more personally satisfied, and commitment to the team's goals is greater. Smaller teams encourage buy-in of the team's purpose and objectives, which ensures greater success.



Tools

For collecting, analyzing/displaying data

• Interviewing • Surveying For generating ideas

• Brainstorming • Brainwriting • Interviewing For making decisions/reaching consensus

• Balance Sheets • Criteria Rating Forms • List Reduction • Paired Comparisons • Weighted Voting For documenting processes/planning action

• Flowcharts • Gantt Charts • PERT Charts

8D Step 1: Organize and Plan Checklist

1. Has the objective been identified? 2. Has the problem topic or opportunity been identified? 3. Has the team adhered to the process according to the

standards? 4. Have team members been selected (including those

who have the information and/or knowledge to solve the problem)?

5. Has the project plan been developed? 6. Have meeting and decision-making processes been

agreed upon?

Yes No

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)



Describe the Opportunity/Problem

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)

PLANACT

DO

CHECK

“It isn’t that they can’t see the solution. It is that they can’t see the problem.”

— G.K. Chesterton



STEP 2: Describe Opportunity / Problem

Summarize and Interpret Data Write Problem Statement

PROBLEM STATEMENT

“AS IS”

“DESIRED STATE”

Obtain additional data needed to narrow the problem (who, what, when, where, why, how, how many—in quantifiable terms).

Display data in appropriate formats.

Interpret data to clarify the problem.

Compare data with business objectives.

Write an "as is" statement describing the

present situation.

Write a problem "desired state" describing the requirement or specification. - This "desired state" is based on returning the product/process to the documented drawing, standard or specification.

Identify the gap.

P



Problem Statements

Criteria for problem statements

• Based on data • No causes • No corrective actions/solutions • Not too broad Guidelines

• Wording of “as is" and “desired state" problem statements either

positive or both negative. - Mirror image

• Use the same metric - #'s or %'s

Example of Problem Statement

Problem Topic: Employee complaints about parking Problem Statement: As Is - 90% of the second shift has a place to park. Desired State - 100% of the second shift has a place to park. Gap = 10%



Tools in the Tools Section


• Cause-and-Effect Analysis (Fishbone Diagrams) • Checksheets • Cost-Benefit Analysis • Force-Field Analysis • Histograms • Interviewing • Pareto Analysis • Pie Charts • Surveying • Run Charts For generating ideas

• Brainstorming • Brainwriting For making decisions/reaching consensus

• Balance Sheets • Criteria Rating Forms • List Reduction • Paired Comparisons • Weighted Voting

8D Step 2: Describe the Opportunity/Problem Checklist

1. Has data about the problem been obtained and reviewed?

2. Has the problem been identified by What, When, Why, How and How Much?

3. Have trends been identified? 4. Has the customer provided input to the problem? 5. Has the problem been defined in measurable terms

(with As Is, Desired State, and Gap)? 6. Do we have the right team members to proceed to the

next Step?

Yes No

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)



Contain the Problem

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)

PLANACT

DO

CHECK

“The best way to have a good idea is to have lots of ideas.”

— Linus Pauling



STEP 3: Contain Problem

Contain the Problem (“Damage Control")

P

Brainstorm and select interim actions for

containment to ensure that all potential locations and part numbers of defective product have been included in the containment plan.

Validate that the interim actions do not

adversely affect process capability.

Plan for implementation of interim actions: - Assign responsibility - Establish timeframes (immediate) - Address open questions

Implement interim actions:

- Monitor for effectiveness

Verify interim actions: - Were they successful?

Brainstorming

Guidelines for Brainstorming

• No evaluation

• Encourage wild ideas • Hitchhike - build on ideas of others

• Strive for quantity Types of Brainstorming

• Freewheeling • Round robin • Slip method

Post flipchart with problem

statement. Write large enough. Write verbatim. Leave space between

ideas. Use bullets or dashes. Post each page as it is

Rules of Scribing



Elements of an Implementation Plan

• Break implementation tasks into achievable steps. • Assign task responsibilities. • Set up time frame and milestones. • Create a document for tracking the progress of the implementation. • Include strategies for communicating and gaining commitment. • Include contingency plans, in case things go wrong. • Include measures to evaluate what impact the corrective

action/solution is having or has had on the problem. What a Good Plan Should Look Like

What Who When J F M A M A Jim -------| B Sue |--------| C Lynn ----------------| D Bill/Jim |----|

Activities Milestones Who What When



Tools For collecting, analyzing/displaying data

• Cause-and-Effect Analysis (Fishbone Diagrams) • 5 Why Analysis • Checksheets • Cost-Benefit Analysis • Force-Field Analysis • Histograms • Interviewing • Pareto Analysis • Pie Charts • Surveying • Run Charts For generating ideas




8D Step 3: Contain the Problem Checklist

1. Have potential containment actions been identified? 2. Have containment actions been selected? 3. Have containment actions been implemented? 4. Are the containment actions effective at protecting the

customer from defects? 5. Have containment actions been verified by the

customer? 6. Do we still have the right members on the team to

proceed to the next step?

Yes No

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)



Identify and Verify Root Causes

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)

PLANACT

DO

CHECK

“Opinion has caused more trouble on this little earth than plagues or earthquakes.”

— Voltaire



STEP 4: Identify and verify root cause

Identify Probable Causes Analyze Probable Causes Select Root Causes for Action Cause 1

Cause 2

Cause 3

Cause 4

P

Cause 1

Cause 2

Cause 3

Cause 4

Cause 1

Cause 2

Cause 3

Cause 4

Review customer requirements.

Brainstorm and organize

possible causes (e.g., fishbone).

Explore levels of cause.

Identify probable causes.

Follow probable causes process: 1. Identify common themes. 2. Label causes:

a. Strongly correlated to the effect

b. Moderately correlated to the effect

c. Weakly correlated to the effect

Select probable causes for

data collection.

Design collection instrument (e.g., checksheet).

Collect/analyze/display data.

Identify root causes preventing the "desired state" from being achieved.

Prioritize root causes.

Apply criteria of actionable

and within scope of team.

Select root cause(s) to work on.

Organize and implement

experiments to test and validate root causes.

Revise problem statement if

required.



STEP 4: Identify and verify root cause (cont.)

Generate Potential Corrective Actions

Clarify Potential Corrective Actions

P “As is”“Desired State”

Cause 2

Cause 4

Corrective Action A Corrective Action B Corrective Action C Corrective Action D Corrective Action E

CORRECTIVE ACTION A CORRECTIVE ACTION B CORRECTIVE ACTION C CORRECTIVE ACTION D CORRECTIVE ACTION E

Review Problem Statement

and Root Causes.

Make sure all team members are present.

Generate potential corrective

actions: - Focus on reducing or eliminating root cause(s). - Solicit ideas from team members and others outside the team.

Use clarifying questions to

ensure all members have a common understanding of each corrective action/solution.



Tools in the Tools Section For collecting, analyzing/displaying data

• Interviewing • Cause-and-Effect Analysis (Fishbone Diagrams) • 5 Why Analysis • Checksheets • Cost-Benefit Analysis • Force-Field Analysis • Histograms • Pareto Analysis • Pie Charts • Surveying • Run Charts

For generating ideas

• Brainstorming • Brainwriting

For making decisions/reaching consensus

• Balance Sheets • Criteria Rating Forms • List Reduction • Paired Comparisons • Weighted Voting

For documenting processes/planning action


8D Step 4: Identify Root Causes Checklist

1. Has the problem statement been reviewed? 2. Have probable causes been identified? 3. Has data been collected on the probable causes? 4. Have root causes been prioritized and selected? 5. Have potential corrective actions/solutions been

identified? 6. Have potential corrective actions/solutions been

clarified? 7. Do actions need to be taken to ensure that other

potential causes do not create unwanted effects? 8. Do we still have the right members on the team to

proceed to the next step? NOTE: You know you have identified the root cause if you can make the “defect" occur or go away.

Yes No

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)



Develop Corrective Action Plan

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)

PLANACT

DO

CHECK

“Take care of the means, and the end will take care of itself.”

— Gandhi



STEP 5: Develop corrective action plan

Select Criteria Use Criteria to Select Best Corrective Action(s)

Develop Plan

Criterion 1 Criterion 2 Criterion 3 Criterion 4

Criterion 1Criterion 2Criterion 3Criterion 4

CORRECTIVE ACTION ACORRECTIVE ACTION BCORRECTIVE ACTION CCORRECTIVE ACTION DCORRECTIVE ACTION E

CommitmentStrategyContingency

PlansMeasures

Step 1

Step 2

Step 3

Choose criteria per business demands (e.g. cost, control, time, resources).

Bracket ideas.

Combine ideas.

Assure ideas are actionable

and within scope of team.

Design a selection instrument (e.g., Criteria Rating Form).

Make sure to get input from

all team members, process owners and stakeholders.

Select best corrective

action/solution (or set of actions).

Develop plan for

implementing corrective action(s)/solution(s) including measures, contingencies, and pilot tests: - Arrange for customer involvement. - Assign responsibility.

Validate that all team

members understand their part in the plan.

Ensure all required

resources are allocated.



Tools


• Checksheets • Cost-Benefit Analysis • Force-Field Analysis For making decisions/reaching consensus



8D Step 5: Develop Corrective Action Plan Checklist

1. Have pros and cons been voiced? 2. Have potential corrective actions/solutions been

filtered and combined? 3. Have criteria for selection been identified? 4. Has a corrective actions plan been developed,

including the pilot (if required) - Who, What, When, Where, and How to Measure?

5. When implemented, will the permanent corrective action/solution cause other problems?

6. When implemented, will the permanent corrective action/solution cause problems for other customers?

7. Based on our evaluations, will the permanent corrective action/solution totally eliminate the defect associated with the root cause?

Yes No

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)



Notes



Implement and Verify Corrective Action

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)

PLANACT

DO

CHECK

“The great end of life is not knowledge but action.”

— Thomas Huxley



STEP 6: Implement and verify corrective action (Note: This is the implementation of a ‘proposed’ corrective action as a pilot. Full implementation occurs in step 7.)

Verify

Conduct simulations and pilot tests: - Gather data.

Using test data and customer input,

verify that the initially identified root cause is the actual cause.

Evaluate effectiveness of corrective

action/solution: - Use customer input.

Verify selection of measurements.

Document improvements.

Address open issues.





• Interviewing • Cause-and-Effect Analysis (Fishbone Diagrams) • Checksheets • Cost-Benefit Analysis • Force-Field Analysis • Histograms • Pareto Analysis • Pie Charts • Surveying • Run Charts For generating ideas




8D Step 6: Verify Effectiveness Checklist

1. Have pilot(s) been conducted? 2. Has data been collected? 3. Has success been achieved based on closing the

problem gap and addressing customer feedback? 4. Have new problems (if any) been identified? 5. Are containment action(s) still in place? 6. Do we still have the right team members to proceed to

the next step?

Yes No

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)



Notes



Prevent Recurrence

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)

PLANACT

DO

CHECK

“Those who can’t learn from the past are doomed.”

— Gandhi



STEP 7: Prevent recurrence

Note: Prevention results from implementation of the verified corrective action.

Prepare Implement Utilize Data

CollectData

CollectData

CollectData

Step 1

Step 2

Step 3

Monitor

Corrective Action(s) In Place

Restate the root cause as

required.

Conduct training as required.

Review customer data.

Implement corrective

action(s): - Remove interim containment actions.

- Collect in-process data to

track implementation progress.

- Implement contingency

plans as required.

Maintain communication with process owner and stakeholders.

Evaluate:

- Collect results data for evaluation of the effectiveness of corrective actions/solutions. - Obtain customer feedback.

Update all required

documentation to ensure ISO/QS compliance. - Quality Inspection Plan(s) / Control Plans - Process Specifications - Quality Specifications - Product Prints - Local Documents (Work Instructions) - Routings - Part Master - FMEA(s)

Analyze data.

Display data in appropriate

formats.



STEP 7: Prevent recurrence (cont.)

Make Comparisons Complete Evaluation

DesiredState

CorrectiveAction

P

New problems?

Recycle

Compare new data with business objectives and corresponding “desired state."

Compare new data with previous analysis.

If “gap" still exists, address why.

Identify new problem areas (if any) created by

corrective action(s)/solution(s).

Address additional problems as needed.

Update the standard process documentation, if required.

What practices, procedures, and systems

allowed the initial problem to occur?





• Cause-and-Effect Analysis (Fishbone Diagrams) • Checksheets • Cost-Benefit Analysis • Force-Field Analysis • Histograms • Interviewing • Pareto Analysis • Surveying • Pie Charts • Run Charts For documenting processes/planning action

• Flowcharts • Gantt Charts • PERT Charts • Procedure Sheets • Boundary Worksheets

8D Step 7: Prevent Recurrence Checklist

1. Has the problem statement been reviewed? 2. Has the plan been reviewed? 3. Have all containment actions been removed? 4. Has monitoring showed that the corrective

action(s)/solution(s) are continuing to work? 5. Have new problems (if any) been addressed using

8D? 6. If a customer has identified this as a problem, has the

customer also confirmed that the problem has been resolved to their satisfaction?

Yes No

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)



Celebrate and Communicate Success

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)

PLANACT

DO

CHECK

“Nothing comes from doing nothing.”

— Shakespeare

8D Step 8: Celebrate and Communicate Success

4Identify &

Verify RootCauses

3ContainProblem

2Describe

Opportunity/Problem

1Define concern,

Organize andPlan

7Prevent

Recurrence


Success

5Develop


6Implement &

VerifyCorrective

Action


(8D)

Checklist 1. Has the 8D team been recognized? 2. Have changes been communicated across the

organization as required? 3. Have the changes been communicated to other sites

where this same process is performed? 4. Has the process been standardized?

Yes No



Action Planner Reflections What are my key learning points? How can I use what I've learned? Action Plan What? How and when?



Notes

402-105 DMAIC MODEL

Rev. G Six Sigma Operational Excellence 1

The DMAIC model (Define, Measure, Analyze, Improve and Control) is a rigorous, disciplined process utilized by the Black Belts in leading the Six Sigma project team. The model consists of defined phases and a series of tools within each phase. The tools are quantitative (statistical), qualitative, and implementation. Each Six Sigma project must complete all 5 phases in sequential order. However, based on the actual results obtained, it is possible that a project may cycle between the Measure – Analyze – Improve phases before entering into the Control phase.

D M A I C

DMAIC 402-105

2 Six Sigma Operational Excellence Rev. G

Reactive Problem Solving or Breakthrough Improvement: Which One?

8D Problem Solving Process DMAIC A general process for reacting to unforeseen change in: • work process • manufacturing process • results • customer satisfaction

WHEN THE PROCESS IS

USED

A proactive, tightly focused process for use by Six Sigma project teams commissioned by leadership to solve: • a systematic business process issue • a systematic work process issue • highly wasteful / inefficient processes

• definition of problems • containment of the problem • analysis of data • understanding and elimination of root cause • creative ideas • more alternatives • teamwork • commitment

THE PROCESS FOSTERS

• a disciplined approach • elimination of unneeded work • focus on the control of input variables • shared responsibility • strong customer/supplier communication

lines • critical measurement • confidence in results

• there is a gap between the "as is" state and the documented standard

• product does not meet print • process is out of control • when the customer requires evidence of

problem resolution

USE IT WHEN • you need to improve the process of a particular, currently existing output

• you are about to produce a new output, the need for which has recently been determined

Basic Concepts of Quality The list below summarizes the concepts of quality on which the Quality Improvement Process is based. These are contrasted with some conventional views on quality and quality improvement. Definition of Quality Conformance to requirements –

internal and external customers NOT Expensive, luxurious or top of the line

The Performance Standard

Consistently meeting the established requirements

NOT “Close enough” or “Almost”

We Meet Requirements By

Knowing the requirements; preventing mistakes from occurring

NOT Only finding and fixing mistakes; “fixing it in the field”

Quality Improvement Opportunities Are Selected By

Looking for areas aligned with the business strategy and with the greatest payback

NOT Picking at random. “firefighting”

We Can Measure Our Success By

Measuring our work against facts and data such as customer requirements and process improvements

NOT Opinions, guessing or “gut feel”

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Step 1: DEFINE Description: Leadership identifies a process that is not meeting the strategic objectives, establishes the scope and boundaries for the project and commissions a Black Belt to lead a Six Sigma project team.

Guidelines 1. The process owner has accountability

and authority to make changes in the process.

2. Standards are being followed. 3. Identify the current state, the

entitlement state, and GAP. 4. Team consists of a Black Belt,

process employees, process owner and finance.

5. Process defined as an output statement. Boundaries should be established by identifying suppliers, inputs, customers, and output.

6. Identify internal customers by name.

Tasks to do / Questions to Ask • Are the wasteful processes defined as an output? • Which process requires improvement the most? • Who is the process owner? • Who are the subject matter experts? • Who should participate in the improvement effort? • What are the boundaries for the process? • Who are the customers for this process? • What are the customers’ requirements? • What is to be produced? • Draft specific description of each requirement in terms of physical and

measurable attributes of the output. • Review agreed-upon customer requirements. • Validate the detailed description with the customer • Define the project goals and savings.

Outcome • Project commissioned by Executive Champion. • Project Charter completed. • Improvement opportunity identified. • Goals and savings identified. • Savings agreed to by Finance. • Subject matter experts identified. • The improvement team members identified. • The customers of the process identified.

Checklist Is this process the most critical facing your

organization? Has the Project Charter been completed? Has a Black Belt been assigned? Has a process owner been identified? Have the team members been identified? Have the boundaries, inputs, and outputs been

identified for the project? (initial Value Stream Map) Has Finance endorsed the projected savings?

Leadership Verification Questions – Step 1 Prioritize • How did you define the general project; what

data did you use? • How is this project aligned with the business

strategy?

Identify wasteful process • How have you determined the boundaries to your process? • How does this process support external customer requirements? • What documented standards are being followed for the wasteful

process Select Project • Based on current process response, where

should you focus your attention and why?

Commission Team • Who is the Black Belt? • Who are the subject matter experts? • Who will be responsible for implementation of this improvement? • What are the team’s next steps?

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Step 2: MEASURE Description: The Six Sigma project team develops a baseline for the current process by generating a process map and identifying the input / output variables and the value adding / non-value adding steps. The team also determines the current measurement system and validates the capability of the measurement system.

Tasks to do / Questions to Ask • Benchmark other processes that have produced same or similar outputs. • Document the current work process. Add to Value Stream Map, begin detailed Process

Maps, and do process layout (spaghetti chart) • Complete a process Failure Mode and Effects Analysis (FMEA). • Review list of customer requirements and supplier specifications from the boundary

worksheet. Record on Value Stream Map. • Identify steps for elimination from detailed process maps: • Does this operation / step contribute to the conformance of a specific customer

requirement? • If this process is not done will the process fail? • If the answer to both questions is no, remove the step. • Identify process and results measurements for each supplier specification. • Identify any other measurements critical to producing an output that meets requirements. • Identify critical success factors and their location in the process. • Characterize the process and identify the primary sources of variation. • Complete the measurement system analysis. • Establish the baseline process capability. • Establish the baseline process capacity (compare to takt time). Hints: • Examine the decision blocks to determine if directly

supported by a customer requirement or cause and effect diagram. (May use brief QFD.)

• Examine the tasks to determine if directly supported by a customer requirement or cause and effect diagram.

• Examine the data collected and unit of measure to determine if directly supported by a customer requirement or cause and effect diagram.

• If related to customer requirement or cause and effect diagram, then measure; otherwise, eliminate the measurement.

• Establish a plan for collecting and displaying data.

Suggested Process: • Generate VSM &

Detailed Process Maps.

• Brainstorm proposed measurements.

• Complete measurement justification.

• Create check sheets for data collection

• Show location of any measurements on maps.

Guidelines 1. Search for existing

documentation; don’t reinvent the wheel.

2. Work process steps must include major activities.

3. Complex work requires more detailed information.

4. Measurements should be derived from customer requirements and supplier specifications.

5. Measurement plan should be completed before work begins. Customer requirements and / or probable causes should support critical success factors.

6. Three types of measurements: Baseline, Process, and Results.

7. Need to make a clear, reasonable choice between gathering new data or using existing data.

Outcome • Identify systematic way of

producing the output. (The process as it currently exists).

• Identify process steps for elimination.

• Identify relevant measures • Plan for collection of own

data. • Completed Process FMEA. • Completed current Value

Stream Map • Completed Measurement

System Analysis.

Checklist • Does the process documentation show a sequence of activities / tasks? • Are the activities / tasks at sufficient level of detail? • Does the work process documentation show inputs / outputs? • Does the process documentation identify decision points that will prevent errors? • Does the work process specifically enable each supplier specification? • Have you verified the documentation with the employees working in the process to

ensure reality? • Is the documentation clear enough to be used for training a new employee? • Are the critical success factors identified? • Have you included both in-process and results measures? • Have you established a plan for collecting and displaying your data? • Will you be using existing data or collecting new data? • Have customer requirements been defined? • Is each process specification related to a customer requirement? • Are measurements taken as early as possible in the process?

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Leadership Verification Questions – Step 2: MEASURE

Map existing process • What methods did you use to ensure that the flowchart

coincides with reality? • What steps did the team take to determine ownership of

the process?

Elimination • What process did you use to determine which steps in

the process required removal? • Have you identified any residual activities? • Am I doing this “just in case?”

Select Measures • How have you

identified relevant data?

• Does that information add to the ability to monitor/ improve my process?

Collect Data and Complete Analysis • Based on current process response, where should the team focus its attention and why? • What data should I collect? • What is the purpose of this data collection? • In what unit of measure do I state my requirements? • What dimension will I use to define my key measurements? • When measuring a variable, do I have control over it or is it an input to the process? • Where is the earliest point in the process when I can collect the data? • Will my data collection points give me robust data? • Have I validated this data collection against my flowchart, procedure sheets, customer

requirements, and my cause and effect diagram? • How will this measurement impact my ability to conform to customer requirements?

Process Capability • What is the

baseline process capability?

Collect Data and Complete Analysis • Are control charts being used on the process “X’s” or “Y’s”? • Discuss the results from Minitab. What is the baseline process capability (Cp; CpK, etc.)? • Is the process capable of meeting the internal and external customer requirements? • What is the estimated DPMO? • Show me the initial control plan. • What is the Rolled Throughput Yield?

Process Capacity • What is the

baseline process capacity of the major steps of the process?

Collect Data and Complete Analysis • Compare process cycle times with customer data • Compare takt time with capacity of each step and identify constraints • Identify lead times for supplier and upstream processes • Identify inventory levels between each process step and for raw material • Compute capacity at 80% theoretical (only value adding steps) and 0 defects (entitlement capacity)

Measurement System Analysis • Has the

measurement system analysis been completed?

Collect Data and Complete Analysis • Based on the “R chart by operator” is the measurement system stable? • Based on the “X-bar chart by operator” what is the part to part variation vs. the measurement

error? • Based on the “response by operator” chart what can you determine about bias? • Based on the “operator to part interaction” chart is there any interaction? • What is the total “R&R”? • Is this acceptable or what is the plan to improve?

Process FMEA • Has the

process FMEA been completed and validated?

Collect Data and Complete Analysis • What factors contribute to the highest risk priority numbers (RPN)? • What is the Pareto analysis for the RPN’s? • Is there any relationship between the most significant RPN’s and the process X’s and Y’s? • What controls are in place to protect the customer from receiving defects due to factors with high

RPN’s?

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Step 3: ANALYZE Description: Uses data and Six Sigma tools to establish the key process inputs that affect the output. Guidelines 1. All the key product performance characteristics should

be identified. 2. Include employees, customers, and suppliers. 3. What / How to measure should be decided before the

work process begins. 4. Customer requirements or probable causes should

support critical success factors. 5. Measurements can be divided into before, during, and

after measurements. 6. Concentrate on the vital few measurements that provide

essential information about the quality of your output. 7. The customer may serve as a valuable resource for input

and data.

Tasks to do / Questions to Ask • Prepare several Pareto Charts by analyzing the data

from several perspectives, for example: • Time sequence, cycle times, takt time • Type of product • Location in the process • Type of defect • Type of waste (7 Wastes) • Etc.

• Locate the most prominent bar(s) from the Pareto charts and place this at the “head” of the fishbone diagram.

• Perform root cause analysis by asking why five times and display on a Fishbone.

• Select critical success factors (before, during, after) based on the root cause analysis.

• Collect information on the critical success factors and display appropriately.

• Complete the Cause and Effect diagram. • Complete the ANOVA. • Evaluate the utilization of and data from SPC charts. • Complete the Multi-Vari studies. • Complete the Correlation and Regression analysis.

Outcome • A systematic plan for analyzing the data and identifying

potential root causes for the gap between actual performance (“current state”) and the desired outcome (”entitlement”).

• Create future state Value Stream Map)

Checklist Have Pareto diagrams been constructed? Have you asked “why “ five times for each potential

cause on the fishbone diagram? Has the Cause and Effect diagram been completed? Are the SPC charts providing any meaningful

information? Has the Multi-Vari study been completed? Has the Correlation and Regression analysis provided a

useful prediction equation?

Leadership Verification Questions – Step 3 Analyze Data

• Am I using the proper tool to collect the data? • Have I collected enough data to draw valid conclusions? • Am I monitoring irrelevant data? • How do I validate that the data is pure? • What tools are most effective in interpreting the “voice of the process?” • What message do the graphs give me in terms of my ability to meet the requirements? • How could I further verify the messages seen the graphs? • What message do the graphs give me in terms of my ability to meet the requirements? • How could we further verify the message seen in the graphs? • Is the process in control? • How did we determine that? • Is the process within specifications? • Does it / can it conform to customer requirements? (Is the process capable?) • How have we confirmed these conclusions? • What are our plans for proceeding further with this analysis?

Identify Root Cause • Have Pareto diagrams been constructed? • Have you asked “why” five times for each potential cause on the fishbone diagram? • Have the key process variables been defined? • What are the results of the hypothesis testing? • Do you have sufficient information to proceed with the Design of Experiment (DOE)?

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Step 4: IMPROVE Description: Generate, select, and implement a trial solution to close the gap and meet the goals of the Six Sigma project. The identified improvements will optimize the process outputs and eliminate / reduce defects and variation. The new process operating conditions are validated. The activities will be presented in 2 stages – the first directed at the development of a trial solution and the second at the implementation of the solution. Guidelines 1. Potential solutions should be based on data generated and the root cause

analysis from step 3. 2. Criteria selected to evaluate the solutions should be based on customer

requirements or critical success factors. 3. Selection should be based on criteria, not opinion. 4. Solutions should be selected by consensus. (Build support) 5. After the process is in control, look for synergistic opportunities

combining statistical and lean concepts:

Tasks to do / Questions to Ask • Brainstorm possible solutions. • Develop criteria to assess the solutions. • Plan and complete the DOE • Select the trial solution. • Develop a plan to implement the trial

solution. • Implement changes as required.

• Eliminate non-value-added steps from Value Stream and Process maps (using the criteria to the right).

• Establish improved layout and process flow (cell design, etc) • Balance work based on standard work and takt time • Establish inventory control with buffers, Kanbans, and other techniques. • Focus advanced tools such as Quick changeover and error-proofing on

constraints to improve overall throughput. (* Lean tools can be the “fix” to problems confirmed by advanced statistical analyses.)

Assessment Criteria: • Does the customer care

about it? • Does it physically change

the thing / output? • Is it done right the first time? If you answer no to any of these the step is non-value-added.

6. Implementation plans should include Who, What, When, Where, Why. 7. Plan the DOE:

• The statement of the experimental objective? • The screening experiment. • The Characterization. • Analyze using ANOVA and regression. • The prediction equation.

8. Trial solutions should be on a pilot first to reduce the risk of failure. Request customer feedback on the success of the trial solution. Outcome • Trial solutions have been

implemented and have closed the gap in a pilot program

Checklist Have all potential solutions been identified? Have criteria been selected that will ensure conformance to customer

requirements? Has the DOE been completed? Has the DOE analysis (ANOVA, Regression and Correlation been completed? Has an implementation plan been completed? Has the implementation plan been reviewed with the customer? Have Critical Success Factors (measurement) been identified? Is the implementation plan working?

Leadership Verification Question – Step 4A

Generate Trial Solutions • Have all potential solutions

been identified?

Select a Trial Solution • Have criteria been selected that will ensure conformance to customer

requirements? Implement a Trial Solution

• Has an implementation plan been completed/ • Has the implementation plan been reviewed with the customer? • Have milestones been identified as part of the implementation plan? • Have Critical Success Factors (measurement) been identified? • Has the DOE been completed? • Have the ANOVA and Correlation / Regression analysis been completed? • Is the implementation plan working?

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Step 4B

Description: Confirm results and validate the improvements. Guidelines 1. Process changes should be documented with a

flowchart and procedure sheets update. 2. Process FMEA and control plan should be

updated. 3. Changes should include the measurement

points in the process and check sheets. 4. Evaluation of conformance should be based on

customer requirements and critical success factors.

5. Customer provides you with confirmation of your conformance.

Tasks to do / Questions to Ask • Continue to meet with customers to identify changing

requirements. • Continue to monitor processes to identify areas for process

improvement. • Benchmark other processes to identify better practices. • Implement necessary changes. • Standardize process changes where applicable. • Identify new knowledge that is a result of the pilot. (Any side

effects or unexpected results, implementation problems, etc.)

Outcome • Verify that the trial solution is working and

meeting customer requirements.

Checklist Have customer requirements been met? Has the customer confirmed these changes? Are there opportunities for process improvements? Have the following been updated:

Process FMEA Future Value Stream and detailed Process Maps Layout and process flow with documented standard work Data collection process Control plan

Have process optimization tools been utilized: Process flow and layout? Line balancing and One piece flow? Kan-Ban? Visual control? Workplace Organization (5S)?

Have Poka-Yoke (Error Proof) devices been implemented? Has the process capability for the revised process been

documented? Leadership Verification Questions – Step 4B

Confirm the solution works • Have customer requirements been

met? • Have these changes been confirmed

by the customer? • Are there opportunities for process

improvements? • Have process optimization tools been

implemented? • Have visual controls been

implemented?

Has the “desired state” been achieved? • If no: Was your selected root cause removed?

• If not, have you revisited your criteria rating form for the solutions? • What other root causes do you plan to explore?

• Have you reviewed your measures to be sure they are robust? • If yes: Have you developed your implementation plan?

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Step 5: CONTROL Description: Implement process changes and standardize the solution, assign responsibility to maintain the gains, return the process to sustaining operations. Guidelines 1. All process documentation

must be updated to reflect process changes.

2. Methods for collecting data to ensure the conformance of the process must be assessed and implemented.

Tasks to do / Questions to Ask • Verify the flowchart and procedure sheets (standard work) are reflecting reality. • Verify the measurement system is robust enough to be implemented system wide. • Incorporate what you learned from the pilot into the implementation plan. • Develop a plan to implement the solution. • Update all the documentation required by the Quality Management System. • Identify methods and tools used to train the employees on the new methods. • Implement changes as required. • Develop the final presentation for project closure. • Document the project savings.

Outcome • Process improvement changes have been implemented and have closed the performance gap. • Process documentation to support the Quality Management System has been updated and deployed. • Revised process is returned to the process owner and sustaining operations to maintain the gains and deploy continual

improvement techniques as applicable. Checklist

Have all flowcharts and procedure sheets been updated and to they reflect reality? Has all of the required documentation been updated to ensure ISO compliance?

Quality Inspection Plan(s) Process Specifications Quality Specifications Product Prints Local Documents (Work Instructions) Routings Part Master FMEA(s) Layout and process flow (verify cycle times) Load leveling, buffers, and kanbans used conjunction with production control systems

Has an implementation plan been completed? Has the customer reviewed the implementation plan? Have milestones been identified as part of the implementation plan? Is the implementation plan working? Has the process owner taken control of the revised process to maintain the gains? Identify best practices and lessons learned during the project.

Leadership Verification Questions – Step 5 Implement process changes

• What additional lessons were learned from the pilot? Standardize the solution

• Have all flowcharts and procedure sheets been updated and do they reflect reality?

• Has all of the required documentation been updated to ensure ISO compliance?

• Does the control plan focus on the X’s rather than the Y’s?

• _ Quality Inspection Plan(s)? • _ Process Specifications? • _ Quality Specifications? • _ Product Prints? • _ Local documents (Work Instructions / standard work)? • _ Routings? • _ Part Master? • _ FMEA(s)?

Recognize and reward the improvement • Has the team been adequately recognized

for their accomplishments? • Have the best practices and lessons

learned been documented?

• Sponsor, black belt and team host the celebration for the regular workers and leaders who at this point are implementing and working in the improved process.

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402-105 LEAN STRATEGIES

Rev. G Six Sigma Operational Excellence i

LEAN STRATEGIES -- TABLE OF CONTENTS: Lean Strategies and Building Blocks ...................................................................... 1 8 Wastes (Muda) Value-Added vs. Non-Value-Added ................................................. 2 Continuous Improvement (Kaizen), Teams................................................................ 3 Cycle Time: for the Process, Worker, Machine........................................................... 3 One-piece Flow (JIT) (Batch Reduction) .................................................................. 5 Pull System (Kanban).............................................................................................. 6 Quality at the Source, Error Proofing, Poka Yoke ....................................................... 7 Quick Changeover................................................................................................... 7 Standard Work, Standard Operations........................................................................ 7 Takt Time (Balance Work to Customer Demand) ....................................................... 8 Total Productive Maintenance .................................................................................. 9 Value Stream Mapping ............................................................................................ 9 Work Flow, Visual Control, Cell Design...................................................................... 9 Workplace Organization (5S) ................................................................................. 10 Bibliography ......................................................................................................... 10 Lean Tools – Linkage to Business Objectives ........................................................... 11



LEAN STRATEGIES

Lean strategies are added to the traditional Six Sigma tools to provide a more powerful and comprehensive improvement approach. While Six Sigma’s statistical tools are focused on the goal of assuring capability (Can we perform at a six sigma, defect-free level?), Lean provides a complimentary focus of assuring capacity and efficiency (Can we meet market demand and make money?).

Lean techniques reduce cycle times and non-value-added activities, and in so doing:

♦ lower costs, ♦ reduce lead times, and ♦ improve flexibility.

Lean is not new. It was practiced during the 1920s at Ford, and Lean concepts are sometimes looked at as “common sense.” More recently, the Toyota Motor Company took the concepts to an uncommon level of implementation, and showed the tremendous power of combining Lean into a modern factory setting. Other organizations have applied Lean beyond manufacturing, in functions as diverse as banking, hospitals, insurance, and restaurants. Lean is not one tool or concept, but a systems approach based on Just-in-Time (JIT) and ‘autonomation’ (autonomous automation). JIT is based on a continuous flow of materials or information, minimal inventory, and a pull system from the customer. Autonomation involves the use of smart machines that are “error-proofed” so they eject defects or stop the process when they are encountered. Both JIT and autonomation assume capable processes, so the statistical tools of Six Sigma are pre-requisites for any significant Lean implementation.

Lean Building Blocks Lean Concepts Lean Implementation Tools

8 Wastes (Muda) Value-Added vs. Non-Value-Added ( All tools use these concepts ) Value Stream Mapping ( VSM form, Tools section pp. 51-52 ) Autonomation (Jidoka) Total Productive Maintenance

(See bibliography for reference materials, or contact your Master Black Belt)

Quality at the source, error proofing, poka yoke Error Proofing Workshop * Continuous Improvement (Kaizen), Teams Cycle Time: for the process, worker, machine One-piece flow (JIT) (batch reduction) Standard work, standard operations Takt time (balance work to customer demand) Work flow, visual control, cell design

Focused Area Improvement Event (Also known as Breakthrough or Kaizan Blitz in Lean literature) *

Pull System (Kanban) Kanban materials * Quick Changeover Quick Changeover Workshop * Workplace Organization (5S) Workplace Organization *

* (The Tyco Electronics Six Sigma Organization has Lean workshop and leader materials available on CD and web pages.)

LEAN STRATEGIES 402-105


8 Wastes – Value-Added vs. Non-Value-Added: As material or information flows through a process, at any given moment value is being added or it is not. For a part of the process to be adding value, it must meet all three of these criteria:

1. Physical change or information/decision added 2. Done right the first (and only) time (e.g. only one signature) 3. The customer cares and will pay for it

Any work or time in the process when this is not happening is WASTE. The measure for waste is time, and is part of the total process cycle time. The waste can be categorized into one of the following:

Eight Wastes

Over-Production – making any quantity over or faster than the next process requires, or more than customer demand.

Waiting – Lot delay and Process delay, storage time. This could be in a warehouse, in-box, or over the weekend. (For total process cycle time, use 24 hours a day / 7 days a week.)

Transportation – Movement outside a work area, for example: across the plant or across the ocean. Processing – Work done that is not value adding or not required by the customer; for example: the

time for set-up or administrative work. (Note that some of these may be necessary, but they do not add value and it would be good to reduce or eliminate them.)

Inventories – Work-in-process beyond JIT requirements, and finished goods inventory beyond customer demand.

Motion – Movement inside the work area, usually human motion not adding value, for example: getting components, tools, supplies, or packaging materials

Defective Products – Defects themselves are waste, plus they create additional work such as inspection, rework, repair, and warranty. All are waste from defective products.

Unused Creativity – People doing work that machines should do and ideas that are not used by the operation. (This is a lost opportunity and not a timed waste.)

In most processes, waste takes up 95% of the time. In highly automated processes, where engineering has improved the value added process, that percent may be higher than 99%.

Our eyes naturally focus on the value adding part of a process: It is boring to look at parts sitting around. So when we look for improvement opportunities, we often don’t even see the opportunities from cycle time reduction. This is why some of the recent books and articles on Lean have titles like “Learning to See.” In this sense, traditional Six Sigma and Lean are two perspectives of improvement methodologies, and only with both lenses can we see and realize all the opportunities.

95% 5%Non-Value Adding Value Adding



Continuous Improvement (Kaizen), Teams While there are opportunities for improvements from easily achieved, ‘low hanging fruit,’ Lean should also be looked at as a process of continual improvement. As all of the concepts are inter-related, their combination achieves a synergistic benefit. For example, reducing changeover time makes it possible to reduce lot sizes, which improves inventory, which reduces scrap. So while in addition to focused projects (a Kaizen Blitz), ongoing improvement still needs to happen.

Teams: In the Lean environment, there is an emphasis on teamwork. Individual effort is also realized, but the benefits of teamwork pay off with many ideas going into the analysis and solution plus, improved long-term implementation. With Six Sigma projects, team involvement is even more critical since the Black Belt will go to other projects, leaving the Control phase to the natural work group and supervision. If they have not been involved, the improvements may not get implemented or standardized.

Cycle Time: for the Process, Workers, Machines Lean is all about cycle time – the time it takes for something to go through a process – not the time the work takes since that is only the value added time, which is typically only about 5% of the total process time. To get the baseline performance for Lean, measurement of the cycle time including non-value adding time must be done.

Breakthrough Improvement with Continuous Improvement

Time

Excel lence

Breakthrough

New Standard

New Standard Continuous Improvement

Continuous Improvement



Note that including non-value adding time is not part of standard Six Sigma process mapping. It is not needed there since the quality tools and statistics are applied to only the value adding steps. But to achieve cycle time improvements, your “Lean eyes” must be put on to be able to see the waste. There are a several ways to get this data:

Calculation of Total Process Cycle Time

♦ Detail Process Mapping: Include all non-value added “steps” into the map. This means that movement, waiting/storage, rework, etc. are included as steps in the flow. Measure the cycle time of each of the steps – including the non-value adding steps.

♦ Tag an item at the start of the process and see how long it takes to come out the end of

the process. (Sometimes the tagged item is lost, so more than one item may be needed.)

♦ Look at inventory turns data and extrapolate the cycle time. For example, if inventory

turns are 2, you know that on average the material is in the “process” for six months.

Calculation of Worker (s) Cycle time

♦ For this measure, we want relatively clean, value-added-only time. It is not useful to have pure value added time since human motion is variable. So, time the work without improvements at the person’s normal pace of production. However, do not include any special non-value added time such as going for parts or making storage boxes. (The takt-time formula will compensate for breaks and other normal interruptions.) Do not use average production data: You have to time this with a stopwatch in person. If the person is working with a machine, note any difference in the rates by separating the two types of time. (Note: Be sure to talk to and involve the person being timed. Explain the purpose for the data and the importance of their contribution.)

♦ Capture time required per unit of customer demand.

Calculation of Machine Cycle time

♦ Do not use standard rates. Do not use utilization measures. They often have factors that do not represent true value added time.

♦ Time the process with a stopwatch. Use only full up time at the standard speed of the

machine. Consider multiple out machines as running at 100%. For this measure, we want full theoretical entitlement. (We may never get there, but we want to start without first compromising the data.)

♦ Capture time required per unit of customer demand.



Formula for “Workers Required”

Note the assumption from the data is that there is little waste in the process. Since this is rarely true, the formula indicates a theoretical entitlement. The question remains as to how much waste can be removed and what is the practical number of people needed to do the work. Be aggressive until proven otherwise: It is often possible to meet the theoretical entitlement. One-Piece Flow (JIT) (Batch Reduction) The phrase “one-piece flow” is an ideal like “zero defects” and “six sigma.” While it is achievable in some cases, short-term goals may be to reduce batch sizes by some percentage. If a process is not error-proofed or if there are delays in delivery of materials, one-piece flow can stop the process. (We saw this in the dock workers lockout on the US’s West Coast in 2002. Toyota had to shut down car production because they had only three days’ supply in the US.) Batch size usually is an overly cautious contingency to deal with a number of concerns. They include: ♦ Long, expensive changeover times ♦ Unreliable delivery times ♦ Scrap in the pipeline ♦ “Just-in-case” thinking But large batch sizes have a cost in both time and money. This example of 3000 pieces shows a cycle time reduction from 15 hours to 5 hours 12 seconds by sending the materials on to the next process rather than waiting for the whole batch. An added benefit is that quality problems would be discovered sooner.

Number of Workers Required = Total of Worker Cycle Times TAKT Time

e.g. 5 + 10+ 8 sec.15 sec.

= 1.7 (2) Workers Required

BATCH PRODUCTIONBATCH PRODUCTION**VSVS

ONE-PIECE FLOWONE-PIECE FLOW

T = 5 hr

T = 5 hr

T = 5 hrOPERATION 1

OPERATION 2

OPERATION 3

CT1 = 15 hr

T = 5 hrOPERATION 1

OPERATION 2OPERATION 3

CT2 = 5 hr, 12 sec

t = 6 sect = 6 sec

CT1 = Cycle TimeCT2 = Cycle TimeT = Batch Productiont = One-Piece Flow*Batch Size = 3,000 pcs



Larger batch sizes are encouraged by several factors: ♦ Changeover times push for longer production runs regardless of customer demand (driven

by utilization and recovery measures) ♦ There is no other work to do, and we want to use machines and labor (also driven by

utilization and recovery measures) ♦ Material costs are minimal so large batches don’t incur high carrying costs ♦ There is no “shelf life” of the product So at McDonalds we see very few burgers in the finished goods tray, but lumberyards have literally tons of 2 x 4s. Do our batch sizes make business sense? Batch sizes should be calculated, not just allowed to happen. Pull System (Kanban) Traditional production management is a push system where customer orders are pushed through the various processes. This is the case in “job shops” where production varies to meet actual orders. This system was adopted by businesses using forecasts (guesses about customer orders) and translated into factory orders. These orders usually have large batch sizes for the reasons mentioned above. When we guess right, we have what the customer wants. When we guess wrong, we have excess Work-In-Process and Finished Goods inventory – and sometimes we have to write off and scrap that inventory. And in other cases, we don’t have time to make real orders because we are filling a factory order. (This explains high utilization, high inventory, but low delivery performance: We are making the wrong things.) The pull system turns that process around. Customers pull from stock, and that becomes the signal (kanban) for the preceding process to make more of that part. This cascades into upstream activities to replenish all the work areas. Kanban levels are set carefully to consider variations in customer demand, replenishment times, and variations in supply chain reliability. Examples of effective kanbans can be seen in grocery stores and fast food restaurants. A classic example was home milk delivery where the empty milk bottle was the signal (kanban) to leave more. Factory kanbans may use the empty container as the signal to make more. Conflict with electronic materials systems: Lean favors Visual Controls over remote, computer control. With an effective kanban system, the computer does not “see” some shop-floor transactions, and inventory will fluctuate within the limits of the kanban’s minimum and maximum levels. There are several solutions for Lean and computerized systems to work together, and they have been implemented very effectively. Computers manage the macro system demand, and kanbans control selected shop-floor inventories. The two systems working together are better than either one separately.



KANBAN CALCULATION Quality at the Source, Error Proofing, (Poka Yoke) Quality at the Source means that processes are kept in statistical control, and/or the process is “error proofed” so that mistakes cannot happen. 100% inspection by people is minimized or eliminated in favor of “autonomation” where machines do the work through detectors, vision systems, and other similar devices. Quality Feedback Cycle: All inspection is done “at the source” rather than later and off line from the process. This assures a quick feedback loop so if defects do occur; the amount of scrap produced is minimal. Quick Changeover Long changeover times have caused the need for long production runs, and are themselves waste and targets for Lean improvements. Some changeovers may take days, and with the application of process and tooling improvements, can be reduced to minutes. The Lean goal is “Single Minute” changeovers, thus the project names of SMED and SMEM (Single Minute Exchange of Dies or Molds). Set-in and Adjust are the two major components of changeover. Adjust time is typically the problem, taking as much as 90% of the changeover time. For this reason, the changeover times have goals expressed as “Good Part to Good Part.” Most of the time, savings can be accomplished without any costs. 50% of the time wasted is usually eliminated with planning, organization, and layout. Additional time savings that do involve some investment can be achieved by tooling modifications such as quick disconnects and standard mounting plates. Standard Work, Standard Operations With regard to human effort within a work process, the standard for Lean is:

♦ consistent performance, ♦ prescribed methods, and ♦ no waste.

Following the best techniques is mandatory. The work is engineered to eliminate wasted effort with a streamlined layout and ergonomic ease. (See Workplace Organization)

Number of Kanbans = Daily Output X (Lead Time + Buffer Stock) Container Capacity



Takt Time (Balance Work to Customer Demand) Takt is from German ‘taktgeber’ (time giver or clock), meaning in this context the time or rhythm of customer demand. The takt time calculation is the frequency, spread throughout a day, at which the customer wants a product. So a takt time of 15 seconds is a customer demand on average of every 15 seconds. The formula for takt time is based on scheduled production time, so it could be just one shift, or based on 24/7. If the customer part has multiple parts (20 contacts/connector), the takt time is for that number of contacts. It is time per piece: Note that this is the inverse of the usually expressed production rate which is parts per time period ( 35 connectors per minute, etc.) Takt time is used to spread production resources and allocate machines and labor in the most effective manner. The chart below compares operator cycle time to the takt time.

TAKT TIMETAKT TIMETAKT Time =

Total Daily Operating Time

Total Daily Requirement

TAKT Time is the rate at which the customerbuys the product, one part every 18 seconds.

TAKT Time =60 sec x 60 min x 7.5 hrs x 2 shifts

3,000 pieces

TAKT Time =54,000 sec.

3,000= 18 sec

Operator Cycle TimeOperator Cycle TimeSeconds

Op #1 Op #2 Op #3 Op #4 Op #5 Total0

10

20

30

40

50

Op #1 Op #2 Op #3 Op #4 Op #5 Total

TAKT Time



Total Productive Maintenance TPM is an advanced Lean technique that goes beyond well-developed Preventive Maintenance. TPM’s measures are based on “total available up time,” so are linked to yield. TPM would be used when yield is already high, and a team wants to work on the remaining small percentage. (TPM was developed by the airline industry to reduce accidents and is responsible for their 7 Sigma performance level.) Value Stream Mapping A Value Stream Map is a special type of process map that includes Lean symbols, a before-and-after map at the macro level, project measures, and team membership. The map includes key Lean indicators for the major process steps, including:

♦ Cycle Time ♦ Inventory ♦ Yield (throughput) ♦ Changeover time

Work flow, Visual Control, Cell Design Some of the most dramatic improvements using Lean strategies involve changes in the work flow. Both manufacturing and transactional work can be improved by a combination of process step elimination and cell design. USAA (Insurance) is often cited as a good example of Lean in a transactional (administrative) process. USAA has a paperless internal work process, and calls are handled without routing to various departments for decisions: Customer service increases as costs are reduced. Visual Control adds the placement of all tooling, parts, inventory, other workers, and information so that everyone involved in production can understand the system at a glance. When wasted effort is eliminated and work is balanced in a cell, it is often possible for the work to be done easier by fewer people. (To help the team think creatively, ask the workers how things would have to be arranged so they could do their jobs with bungee cords tied around their ankles.)

UU--SHAPED CELLSHAPED CELL

OUTIN

BEST WORKERUTILIZATION



Workplace Organization (WPO) (5 S) (6 Ts) What appears to be a simple concept organizing the workplace has profound effects on productivity and performance. With the motto of “A place for everything, and everything in its place,” Workplace Organization (WPO) is a powerful and inexpensive way to start Lean implementation. WPO is also part of the Focused Area Improvement Event. WPO is sometimes referred to as 5S, from five Japanese words for organizing the workplace: Japanese 5 S 5 S Translation Tyco Electronics 6 Ts (tools)

♦ Seiri Organization Proper arrangement ♦ Seiton Orderliness Orderliness ♦ Seiso Cleaning up Clean up ♦ Seiketsu Cleanliness Cleanliness ♦ Shitsuke Discipline Discipline

Safety Bibliography: Imai, Masaaki Kaizen. New York: Random House, 1986 Kobayashi, Iwao 20 Keys to Workplace Improvement. Cambridge, Ma: Productivity Press, 1990 Ohno, Taiichi Toyota Production System. Cambridge, Ma: Productivity Press, 1988 Ohno, Taiichi Workplace Management. Cambridge, Ma: Productivity Press, 1988. Rother, Mike and Shook, James Learning To See. Cambridge, Ma. Lean Enterprises Inst, 1999. Schonberger, Richard J. World Class Manufacturing. New York: The Free Press, 1986 Sekine, Ken’ichi and Arai, Keisuke TPM (Total Productive Maintenance) for the Lean Factory. Cambridge, Ma: Productivity Press, 2002 Tapping, Don et.al. Value Stream Management . Cambridge, Ma: Productivity Press, 2002 Womack, James P et. al. The Machine that Changed the World. New York: HarperCollins, 1990



LEAN TOOLS - LINKAGE TO BUSINESS OBJECTIVES

CONCEPTS PROBLEM-SOLVING / PROCESS REDESIGN

BUSINESS OBJECTIVE

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Sta

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Pro

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FINANCIAL Work-In-Process Inventory Floor Space Price Erosion Finished-Goods Inventory Cash Flow EBIT Equipment Utilization * * * * Increase Capacity Resource Inventory Write-Off Productivity Performance Overhead Cost Indirect Manufacturing Cost

QUALITY Administrative Errors Product Quality Customer Returns

SERVICE Response to Customer Change Order Increase Manufacturing Flexibility Delivery Performance

FINANCIAL/QUALITY/SERVICE Continuous Improvement Supplier/Cost Delivery/Service/Quality 9/17/2002 LEAN Tools Matrix

* Some measures may be negatively affected by LEAN strategies such as earned hours and utilization (recovery). This is due to the Just-In-Time principle that says equipment should not be run when no real orders exist. LEAN would reward the factory for freeing up excess capacity, not using it.

402-105 TOOLS FOR COLLECTING, ANALYZING AND DISPLAYING DATA


TOOLS FOR COLLECTING, ANALYZING AND DISPLAYING DATA -- TABLE OF CONTENTS:

Tools for Collecting, Analyzing and Displaying Data

Checksheets ........................................................................................2 Interviewing..........................................................................................4 Surveying .............................................................................................6 Force Field Analysis.............................................................................8 Cause-And-Effect Diagrams (Fishbone) ............................................10 Pie Charts ..........................................................................................12 Run Charts.........................................................................................14 Pareto Analysis ..................................................................................16 5 Why Analysis ..................................................................................18 Histograms.........................................................................................20 Cost-Benefit Analysis.........................................................................22

Tools for Generating Ideas

Brainstorming.....................................................................................26 Brainwriting ........................................................................................28

Tools for Reaching Consensus/Making Decisions

List Reduction ....................................................................................32 Criteria Rating Forms.........................................................................36 Balance Sheets..................................................................................40 Weighted Voting.................................................................................41 Paired Comparisons ..........................................................................42

Tools for Documenting Processes/Planning Actions

Flowcharts..........................................................................................44 Gantt Charts.......................................................................................46 Program Evaluation and Review Technique (PERT) Charts .............48 Value Stream Map .............................................................................49



Tools for Collecting, Analyzing and Displaying Data

Table of Contents Page Checksheets ........................................................................................2 Interviewing..........................................................................................4 Surveying .............................................................................................6 Force Field Analysis.............................................................................8 Cause-And-Effect Diagrams (Fishbone) ............................................10 Pie Charts ..........................................................................................12 Run Charts.........................................................................................14 Pareto Analysis ..................................................................................16 5 WHY Analysis .................................................................................18 Histograms.........................................................................................20 Cost-Benefit Analysis.........................................................................22

TOOLS FOR COLLECTING, ANALYZING AND DISPLAYING DATA 402-105

Six Sigma Operational Excellence Rev. G 2

Collecting Information: Checksheets 1 2 3 A III II B I IIIl C IIIl l

What checksheets are

Data must be collected carefully and accurately. Using checksheets makes it easy to compile, and then to analyze data. Checksheets are used to determine how often an event occurs over a designated period of time. Information is usually collected for events as they happen; less frequently, checksheets are used for recording events that have already occurred. Although the purpose of a checksheet is to track—not analyze—data, checksheets often help to indicate what the problem is. Many kinds of data can be tracked using checksheets: • Number of times something happens • Length of time it takes to get something done • Cost of a certain operation over a period of time • Frequency of occurrence by plant, department, team, machine, etc. • Impact of an action over a period of time

What checksheets look like

The next page shows a checksheet prepared by the Subsolvers, a problem solving team. Team members used this checksheet to track miswires and electrical failures of the interface and module assemblies.



Header Area Purpose: CHECKSHEETS FOR MISWIRES AND ELECTRICAL FAILURES

Date: Time: Location:

Operator: Station: Method:

Defects Jan Feb Mar Apr May Jun Jul Aug Sep Oct Total Defective wiring

in line filter / / // / ////// // / ////// //////////

/// 33

Miswired at line filter

// / // //// 9

Tally Area Miswired at circuit breaker

/ / /// /// / //// ///////// 23

Convenience outlet miswired

// //// /// /// //////// 20

Damaged wires / 1

Ground wire not connected

// 2

Miswire at GFI // / /// 6

Total 2 4 10 1 17 7 9 0 11 33 94

Remarks Area

How to use checksheets

There are two questions that must be answered to set up a checksheet. • What do you want to know? • What is the most effective way to collect the data? Information on checksheets is usually collected in categories: by plant, by product code, by date, by shift. In constructing checksheets, try to form categories that will be easy for the person recording the data to use. The data recorder should not have to make difficult judgments about when and where to "check" a box on the form.



Collecting Information: Interviewing

What interviewing is

Interviewing is a structured technique for collecting information from individuals or groups. If you have access to the people who have the information you need, interviewing (either in person or on the telephone) can be a very efficient means of data collection.

What an interview protocol looks like

The list of questions to be asked in an interview is referred to as an interview protocol or interview schedule. Below is the interview protocol used by the group responsible for developing training for first-line managers. Several members interviewed senior managers to collect information about the topics and skills to be included in the training.

SENIOR MANAGEMENT INTERVIEW PROTOCOL 1. Have you had the opportunity to work with any managers that you

would consider excellent managers? If yes, what skills did you observe them using that distinguished them from other managers? If no, what skills would you expect excellent managers to use that would distinguish them from other managers?

2. How do you think managers learn these skills? 3. What do you think is the most difficult problem that managers have

to handle? Do you think most managers have the skills to handle that kind of problem?

4. What skills do you think managers can best learn in training programs?

5. What informational topics do you think should be taught in management training courses?

6. What do you think is the biggest challenge that managers will have to face in the next 5 years?



How to interview

Tackle this just as a reporter would: • Before the interview, develop a list of questions.

Note that there may be both open-ended and closed-ended questions. Question 1 on the previous page has a combination of both open and closed-ended questions.

Closed-ended questions yield quick, specific answers and are useful when you know what the key issues are. (What was your budget variance last year?)

Open-ended questions are useful when you want the interviewee’s opinion as to what the issues are. (What are our critical budget and control issues for next fiscal year?)

• Be sure to include follow-up questions to get at the information you really need.

• When you conduct the interview, write down the responses. • Verify your understanding of the interviewee's responses. Although the primary skill used in interviewing is questioning, don't overlook the importance of testing understanding to ensure that you have clearly understood what the respondent is saying. If you are collecting sensitive information, you may want to ensure the confidentiality of the respondents. In that case, do not use respondents' names, identifiable quotes, or other information.



Collecting Information: Surveying

What surveying is

Surveying is interviewing on paper. Instead of responding to an interviewer, people answer items on a questionnaire. The major advantage is that you can get a great deal of information from a lot of people very economically. The disadvantage is that people may interpret the questions somewhat differently than intended, their answers may be ambiguous and there is no opportunity to test understanding.

What surveys look like

Here is a copy of the survey questionnaire used by the Charioteers. The purpose of the survey was to test reactions to a proposed combination of Petty Cash and the Weekly Expense Vouchers.

COMBINED PETTY CASH / WEEKLY EXPENSE VOUCHER Please take a minute to answer the following questions about the proposed form and leave the questionnaire on the table in the back room upon your departure. If there is an area of concern that has not been covered, please let us know. Thanks for your time and valued input. 1. Do you like the concept of combining Petty Cash and Weekly Expense

Voucher on one form? 2. Do you feel you would have occasion to use both sections of the

combined form for one transaction? 3. Do you like the uniform heading and signature area? 4. Do you like the uniform size of this combined form? 5. Do you feel there is an advantage with this uniform size combination for

filing purposes and a time saver in not having to make a copy? 6. Do you like the idea of a total mileage concept vs. listing separate trips

for local travel? 7. How much time do you feel this new form will save you on a monthly

basis?

YES ____ NO ____ YES ____ NO ____ YES ____ NO ____ YES ____ NO ____ YES ____ NO ____ YES ____ NO ____ ________________

COMMENTS:



How to survey

• Identify the information you need. • Decide who has this information in its most reliable form. • Plan how you will use the information when you have it in

hand. • Develop a series of questions that will enable respondents to

provide the information accurately and unambiguously. • Keep the questionnaire short, simple, and clear. • Try out the questions with several people to uncover any

unclear questions. Questions can be "closed," with a limited number of responses from which to choose:

How long have you worked in your present job? __ less than 1 yr. __ 1-3 yrs. __ more than 3 yrs.

Or they can be "open": How do you use the information contained in the monthly progress report?



Displaying Data: Force-Field Analysis

Helping Hindering

As is DesiredState

What force-field analysis is

Developed by the social scientist Kurt Lewin, force-field analysis identifies those forces that both help and hinder you from closing the gap between where you are now ("as is") and where you want to be ("desired state").

What force-field analysis looks like

Below is a force-field analysis completed by a group working on the problem "Morale in this department is low."

FORCE-FIELD ANALYSIS

AS ISMorale in this

department is low.

DESIRED STATE:Department members rate

morale as 4 or higherin an internal survey.

Helping Hindering

1

1

1

2

2

2

34

Lengths ofarrows showrelative impact:1 = weak2 = low3 = medium4 = strong5 = very strong

Good pay and conditions

Inconsistent recognition

Team approach to workwithin the department

Reward and recognition aspart of management training

Problem solving teamsestablished

Lack of reviews

No pre-managementdevelopment

Managers not involvedin problem solving



How to use force-field analysis

Draw a line down the center of a flip chart page. This represents the "as-is" situation—what currently exists. This should correspond to your statement of the problem. • At the right edge of the sheet, draw a second vertical line parallel

to the first. This represents the situation as it should be—the “desired state.”

• Using one or more of the tools for collecting and generating information, identify and list the helping forces to the left of the center line and the hindering forces to the right of the center line. The opposing forces are not necessarily "paired".

These "forces" are often shown as arrows. The helping forces are pushing toward the "desired state," and the hindering forces are pushing away from it. It's often helpful to assess the relative strengths of both helping and hindering forces. Some groups use a scale (e.g., 5 -- very strong, 4 = strong, 3 = medium, 2 = low, 1 = weak) to evaluate the relative impact of the forces. For graphic representation, proportionately sized arrows show relative strengths. To move closer to the desired state: • Increase the number or strength of the helping forces. • Decrease the number or strength of the hindering forces. (This

often-forgotten strategy is a key feature of the Force-Field model. It’s easy to think of additional helping forces (more programs), but not take into account the sometimes very strong forces in the way of implementation. Often the only needed action is to remove a significant restraining force!)



Displaying Data: Cause-and-Effect Diagrams (Fishbones)

What cause-and-effect diagrams are

Cause-and-Effect Diagrams are also known as Ishikawa Diagrams, after Dr. Kaoru Ishikawa, or Fishbone diagrams because of the familiar fish skeleton look of the completed figure. The diagram is a visual summary of the analysis of the factors (causes) that result in a particular effect. In quality improvement terms the effect is a quality characteristic that is not meeting expectations. The causes or factors provide an explanation of the dispersion seen in that characteristic. The factors selected and their grouping will differ based on the type of process, problem, and effect being investigated.

What cause-and-effect diagrams look like

The effect (the nose of the fish) is often stated as the problem or the "as is" state you want to correct. (Less often the effect can be the "desired state” or what you want to exist when the problem has been solved.) Here, the "as is" state for the problem "Lamp does not light," is placed at the nose of the diagram (Fish). The bones of the fish are drawn to show the factors that have been identified as possible causes of the undesirable condition. The team might have generated this list using brainstorming, a checksheet, or through other data-gathering tools. The team will next use a consensus building tool to identify the most probable causes. They can then direct their efforts to further data collection to verify the correctness of their selections.

FISHBONE (Ishikawa Diagram)

Lamp doesnot light

Bulb

Plug/cord Lamp

Power

Switch missing

Switch broken

No contact

Not plugged in

Chewed by mouse

Burned out

Missing

Power outage

No house power

Corroded

Carelesscleaning

Cord cut

Vandal

Circuit breaker

Unpaid bill

Storm

Power plant failure

Wall switchturned off

Old

Broken

Bulbsnatcher

Loose



How to use a Cause-and-Effect Diagram • Decide on the effect to be analyzed and write it on the right end of a board or large sheet of paper. This

will be the head of your diagram (Fishbone). Draw a horizontal line across the page. This will be your main arrow to add factors (causes) to.

• Your team can choose from several different methods to label the connecting arrows:

a. Dispersion: This method assumes that analysis of the dispersion, or variation, of generic factors will lead to identification of causes for the subject effect. These factors differ by type of problem. Typical factors for technical problems are:

- Machinery* - Methods* - Environment (Mother Nature)* - People (Man)* - Materials* - Information systems - Measurement - Training - Organization

* Called the 5 M's, these are often used as a set. For sales problems, the factors could be People, Product, Price, Place and Promotion. For administrative problems, the factors could be Policy, Procedure, People, and Plant.

b. Components: This method is useful when a number of parts or "components" make up the whole. For example, the factors causing a lamp not turning on could be due to the bulb, cord, lamp, or plug. Another form of the component-based analysis is the listing of the components or steps in a process. In this case the main arrow would be labeled with the components of the process with the sub-causes listed below.

c. Group generated categories: This method is pursued by having the team brainstorm or list all possible causes without any consideration of categorizing them. Then, using combining, the list is grouped into "buckets" that can be labeled based on the individual items included.

• Now the group begins to fill in the causes with sub-causes branching off the main stems. This can be brainstorming or the result of a data collection process. In each case, the question asked to generate the next level of cause is, "Why does this cause occur?" In sequence, keep repeating this question until there are no more identifiable cause factors. This can be remembered by the phrase, "Ask Why five times". This means to pursue the identification of causes and sub-causes until you have asked the question "Why does this occur?" for every initially identified causal factor until you have exhausted all logical answers.

• Once a complete enumeration of all possible causes is developed, ensure that all listed factors are stated as a cause of the effect. (Corrective action/solution ideas can emerge and they would not be appropriate here.) The team must begin a careful and thorough analysis to validate which factors are actually causing the effect. "Probable causes" can be a theme that appears in more than one category. Probable causes may also be identified based on group member experience. This requires selection of those "probable causes" which deserve close scrutiny. This process can begin using list reduction or other consensus building tools. The Fishbone should remain "alive", meaning it should be constantly updated and revised as new information is learned.



Displaying Data: Pie Charts

What pie charts are

Pie charts are used to show the relationship of each part to the whole—how each part contributes to the total product or process. Pie charts are useful when it is important to show the relationship of various parts to each other, and to the whole. They are easily interpreted and can present data effectively and efficiently.

What a pie chart looks like

Shown is a pie chart prepared by the Charioteers, a problem solving team. This chart indicates the type of forms processed by Forms Administration for a specific period of time.

FORMS PROCESSED IN 1999

2.30%

9.10%

22.60%32.00%

34.00%

OtherPetty CashTravel AdvanceLocal TravelBusiness Travel

82%



How to make a pie chart

By far the easiest way to create a chart is to use the features in commonly used software packages such as Microsoft Excel. If it must be done manually, follow these guidelines:

The 360 degrees of the circle, or pie, represent the total or 100%. The pie is divided into "slices" proportionate to each component's percentage of the whole.

• For each "slice" of the pie, calculate the size of the angle by multiplying the percent by 360 (e.g., 20% x 3600 = 720).

• Using a protractor, mark off the angle at the center of the pie. • Alternatively, divide the pie into equal slices and use this division

to guide your percentage allocations. • There are geographic differences in the placement of the largest

wedge. In the U.S., the largest category starts at 12 o'clock with smaller categories displayed clockwise.

• Shadings or hatchings can further clarify the pie chart, though mixing too many patterns can give the graphic a "crazy quilt" look. When in doubt, keep it simple.

• Label everything clearly. • Add a descriptive title. The typical format is: <Type of

Measurement> by <Categories Measured> for <Group Name> for <Observation Time Period>. Include any "legends".



Displaying Data: Run Charts

What run charts are

Run charts, also known as time charts, display changes in a particular measure over a given period of time. They can help summarize occurrences of a particular situation.

Run charts are particularly useful for showing fluctuations (or lack of them) over time. As is the case in most graphic techniques, a chart communicates much more effectively than the table of numbers on which it is based.

What a run chart looks like

This is a run chart constructed by the Dynamic Do-Rites. This run chart tracks the number of hours being charged to downtime for a seven-month time frame.

HOURS CHARGED TO DOWNTIME

(June to December)

0

50

100

150

200

250

300

350

400

450

Jun Jul Aug Sep Oct Nov Dec

Hours



How to make a run / time chart

The horizontal axis represents time (e.g. months) and the vertical axis indicates a characteristic of interest (e.g., hours) or frequency of occurrence of some event (e.g., defects). The plotted points are usually connected by a solid line. • Collect the raw data using a data collection tool such as a

checksheet or log. • Display time intervals on the horizontal axis. The intervals should

be even. Label each interval. • Display equal intervals on the vertical axis to the left. The scale is

your measure or metric. Label the scales and the individual intervals (e.g., 300 hours, 200 pounds, 60 defects, etc.).

• Plot one data point for each time period. • Connect the points with a line. • Add a title that defines the measurement and over what period of

time the data was collected.



Analyzing and Displaying Data: Pareto Analysis

PARETO ANALYSIS OF OPTICAL FAILURES

45

302520151050

50

4035

100%

92%

80%

66%

50%

Misadjustmen

Misinstallatio

MIsfixing

Partslacking

Miscellaneous

Frequency

What a Pareto Analysis is

Pareto analysis is a frequency distribution technique that separates the "vital few" from the "trivial many." Named for Vilfredo Pareto, a 19th century economist who did work with income and other unequal distributions, a Pareto analysis is designed to point out inequalities.

The familiar 80-20 rule ("Eighty percent of our business comes from twenty percent of our customers") is an example of Pareto analysis.

The basic concept behind Pareto analysis involves the ranking of data, usually presented in a Pareto diagram. Like a histogram (or bar graph), a Pareto analysis shows a distribution. The bars, however, are arranged in descending order.

Pareto charts are used with a cumulative line. When cumulative lines are used, they represent the percentage sum of the vertical bars, as if they were stacked on each other going from left to right.

What a Pareto chart looks like

The next page shows a Pareto analysis prepared by a team who assembles optical systems.

From this chart we see that "mis-adjustment" is the cause of 50% of the observed optical failures.

Note that the final bar is a combination of other "miscellaneous" causes; therefore it is possible that the sum of these miscellaneous causes could be larger than the cause on the right.



PARETO ANALYSIS OF OPTICAL FAILURES

45

302520151050

50

4035

100%

92%

80%

66%

50%

Frequency

How to make a Pareto chart

• Use a checksheet to collect the required data. • Arrange the data in order from largest category to the smallest. • Calculate the total. • Compute the percent of the total that each category represents. • Compute the cumulative percent. • Draw horizontal and vertical axes on graph paper. • Scale the vertical axis for frequency (0 to total calculated above). • Working from left to right, draw a bar for each category, with height

indicating the frequency. Start with the largest category and add them in descending order.

• Draw a vertical scale on the right of the graph, and add percent scale (0% to 100%).

• Plot the cumulative percent line (e.g., mis-adjustment (50%) pIus mis-installation (15%) is equal to 5% of all failures).



Analyzing and Displaying Data: 5 WHY Analysis Description of the 5 WHY Analysis

The 5 WHY diagram helps to identify the root cause of a problem. Additionally, the diagram helps the team to recognize a wide range of possible causes for a problem and relationship between these causes. It can be used by the team when: • A root cause for a problem needs to be probed. • There are many potential contributing causes for a problem. • A graphical communication tool would assist in understanding of

the possible causes for a problem.

How to prepare a 5 WHY chart

• Materials required include a flip chart, post it notes and markers (or a computer generated 5 WHY Analysis template).

• Define the problem as a gap statement by comparing the “as is” state with the “desired” state.

• Brainstorm “why” this problem has or could occur; record the causes on the post it notes. Each of these possible cause statements now become a new problem statement. Place them onto a flipchart in a column immediately to the right of the initial problem statement.

• For each of these new problem statements, ask “WHY” again. It may be helpful to phrase the question “Why does this situation allow or cause the problem to occur?”. Show the relationship between these statements with arrows.

• Continue with this analysis until you have asked “WHY” 5 times or until you have reached a plausible root cause.



SAMPLE 5 WHY ANALYSIS

Define Problem

Use this path for the specific

nonconformance being investigated

Root Causes

WHY?

WHY?

Use this path to investigate why the problem was not

detected.

WHY?Detection

.

.

WHY? WHY?

WHY?

Use this path to investigate the systemic

root cause

WHY?System

WHY? WHY?

Ref. No. (Spill, PR/R…) WHY?

Date of Spill WHY?

Product / Process Customer Location Content Latest Rev Date WHY?

Problem Resolution Complete Communicate to Customer Date: Process Change Break Point Date:



Displaying Data: Histograms

Histogram

0102030405060

0 - 2

.5

10.1

- 12

.5

20.1

- 22

.5

Miles

Freq

uenc

ey

What a histogram is

A histogram shows the distribution of a characteristic. Because of its immediate visual impact, a histogram is more effective for displaying data than a checksheet or frequency table.

What a histogram looks like

The next page shows a frequency table and a histogram for the distribution of distances employees commute to work.

How to construct a histogram

• Collect data on a measure of a single characteristic (e.g., miles commuting to work)

• If the data are not already arranged by frequency, make a frequency table. Select cells which divide the data equally over 10-1 5 cells.

• Draw vertical and horizontal axes on graph paper. • Mark data values along the horizontal axis, from the smallest to the

largest. Label the axis to indicate what is included in each cell, and the unit of measurement (e.g., 0 to 2.5 miles).

• Label the vertical axis "Frequency," and mark values. • Using the information in the frequency distribution table, construct

vertical bars for each of the values, with height corresponding to frequency.



EMPLOYEE COMMUTING DISTANCE

(Frequency Table) Distance

(Miles) 0 - 2.5

2.6 - 5.0 5.1 - 7.5

7.6 - 10.0 10.1 - 12.5 12.6 - 15.0 15.1 - 17.5 17.6 - 20.0 20.1 - 22.5 22.6 - 25.0

25.1 and over

Frequencies (Number of Employees)

2 8

34 56 50 36 26 12 10 4 2

TOTAL 240

(Distance measured to the nearest 1/10 mile)

Employee Commuting Distance

0

10

20

30

40

50

60

0 - 2.5 2.6 - 5.0 5.1 - 7.5 7.6 - 10.0 10.1 - 12.5 12.6 - 15.0 15.1 - 17.5 17.6 - 20.0 20.1 - 22.5 22.6 - 25.0 25.1 andover

Miles one-way

Freq

uenc

y



Analyzing Data: Cost-Benefit Analysis

What cost-benefit analysis is

Cost-benefit analysis enables a team to estimate the real cost and benefits for alternatives under consideration. It facilitates choosing alternatives by making comparisons and uncovers costs and benefits that are not evident.

How to do cost-benefit analysis

The analysis involves calculating or estimating the known costs and potential benefits associated with the proposed solution. This often requires making assumptions (e.g., that the proposed corrective action/solution will result in a 25% improvement in productivity).

Some corrective actions/solutions are relatively easy to evaluate using a cost- benefit analysis. Others don't lend themselves to evaluation on the basis of cost and the dollar value of benefits. For those "softer" corrective actions/solutions, it may be helpful to ask (and answer) two questions simultaneously:

"What do I give?"

and

"What do I get?"

What a cost-benefit analysis looks like

A problem solving team used a cost-benefit analysis to find out if the purchase of a new piece of equipment costing $1000 was practical.

They did a cost-benefit analysis considering all the costs associated with getting the new equipment up-and-running, to find out if the proposed corrective action/solution was cost effective. Their work is shown on the next page.



SAMPLE COST-BENEFIT ANALYSIS

• Costs

Machine $1,000

Rewiring & installation 500

Cost of retraining operator 250

Cost of lost production 500

Total Cost $2,250

• Benefits - Year 1 and ongoing

Reduce rejects by 10% $ 750

Reduce man-hours for the job 500

Reduce start-up time 250

Total Benefits $1,500

Comparing the costs and benefits over two years shows:

Costs Benefits Profit

Year 1 $2,250 $1,500 ($750)

Year 2 1,500 1,500

Total $2,250 $3,000 $750

In two years, the new equipment will pay back its original cost and generate additional income.

TOOLS FOR DOCUMENTING PROCESSES/PLANNING ACTIONS 402-105


402-105 TOOLS FOR DOCUMENTING PROCESSES/PLANNING ACTIONS


Tools for Generating Ideas

Table of Contents Page Brainstorming..................................................................................26 Brainwriting .....................................................................................28



Brainstorming

What brainstorming is

Brainstorming is an idea-generating technique pioneered by Alex Osborn, an advertising executive. People in a group voice their ideas as they think of them so that each has the opportunity to build on the ideas of others. The discipline of brainstorming is maintained by four basic rules. These rules are: • No Evaluation • Encourage Wild Ideas • Hitchhike - Build on the Ideas of Others • Strive for Quantity

What brainstorming looks like

Here is an example showing the list of problems brainstormed by Bob's team, a group of inspectors, material handlers, and assemblers, in a cable assembly production area.

Perceived Problems

1. Lack of work available 2. Inadequate work tables 3. Material flow on 8-inch line 4. Bad lighting 5. Lack of incoming quality control 6. Process out of date 7. Lack of safety precautions 8. Lack of crossover at 8-inch line 9. Station 5 wire cutting layout 10. Defect rate on 8-inch line



How to brainstorm

The group leader presents the topic for which ideas are sought. The wording should encourage specific, tangible ideas, not abstract ideas or opinions. The leader makes sure that the members understand the topic, the objective, and the process to be followed. There are three methods of brainstorming. The most familiar is "freewheeling," where: • Group members call out their ideas spontaneously. • The scribe records the ideas on a flip chart as they are suggested. In "round-robin" brainstorming: • The leader or scribe asks each member, in turn, for an idea. • Members may pass on any round. • The session continues until all members have passed during the round. • Ideas are recorded as in freewheeling. The "slip method" differs markedly from the other two approaches. • The leader asks members to write down their ideas on small slips of paper or index-cards. • The ideas are then collected and recorded on a flip chart.

Each approach has its advantages and disadvantages. These are summarized below. Regardless of the approach used, the output of the brainstorming session must be reviewed and evaluated using such tools as list reduction and weighted voting.

BALANCE SHEET ON BRAINSTORMING APPROACHES + (Advantages) - (Disadvantages)

Freewheeling

• Very spontaneous • Tends to be creative • Easy to build on others' ideas

• Strong individuals may dominate the session • Confusion sets in • Ideas may be lost when too many talk at once

Round Robin • Difficult for one individual to dominate • Discussion tends to be more focused than

other approaches • Everyone is encouraged to take part

• Difficult to wait one's turn • Some loss of energy • Reluctance to pass • Not as easy to build on others' ideas

Slip Method • Anonymity allows sensitive topics to surface • Can be used with very large groups • Not necessary to speak out

• Not possible to build on others’ ideas • Slow pace • Difficult to clarify ideas



Brainwriting

What brainwriting is

Brainwriting is an idea-generating technique that combines features of the various approaches to brainstorming. As in the slip method, participants record their own ideas. Like freewheeling and round-robin, brainwriting gives participants the opportunity to build on others' ideas. Compared to brainstorming, brainwriting tends to result in somewhat fewer, but more fully developed, ideas.

How to use brainwriting

In the most common approach to brainwriting, participants sit around a table and each writes their ideas on a sheet of paper. Members then place the papers in the center of the table to exchange their own with someone else's. By examining the others' ideas, participants try to build on them or come up with entirely new approaches. After an agreed-upon time period the papers are collected. Ideas can be clarified and evaluated at that time or later. As a variation, some groups use large index cards, writing a single idea on each. Cards are then passed to the person to the right to stimulate modifications or new ideas. A third approach, sometimes referred to as the "gallery method," involves posting several flipcharts (at least two per participant) around the room. Each member writes his or her ideas on the sheets for 20 to 30 minutes. Participants then walk around the room for 10 to 15 minutes, reading the ideas recorded by others. For the final 20 minutes or so, members return to their sheets to continue writing, stimulated by and building on others' ideas.



When to use brainwriting

Like brainstorming, brainwriting is a powerful tool for both the 8D and 7-Step processes. There are several situations, however, where brainwriting may offer clear advantages over brainstorming: • When it's important to get more carefully thought-out ideas

The very act of writing down one's ideas encourages people to think them through, to express them more clearly and completely.

• If previous brainstorming sessions have been monopolized by one or two dominant members Brainwriting provides everyone equal time to think and write and it virtually eliminates pressure toward group conformity.

• If the group tends to “socialize” too much Brainwriting provides a very strong task orientation that some groups may need to keep them focused.

• If there is strong conflict within the group, or if the topic is highly controversial Although conflict can be beneficial to a group, it must be carefully managed by the leader or facilitator. Brainwriting can be successful in tense, highly charged situations where brainstorming may not be manageable.



How to improve the group's use of brainstorming and brainwriting

“Idea-spurring" questions include: • Can we combine or meld ideas? Purposes? • How can we adapt or modify what you're currently doing or using? • Can you find new ways to use old ideas? • Can you make it larger? Smaller? • Can you eliminate parts? Add parts? • Can you delay it? Speed it up? • Can you do it in a different order or sequence? • Can you put it someplace else? • Can you do it more often? Less often? • Can you borrow from other corrective actions, solutions, or

processes?



Tools for Reaching Consensus / Making Decisions

Table of Contents Page List Reduction ..........................................................................................32 Criteria Rating Forms...............................................................................36 Balance Sheets........................................................................................40 Weighted Voting.......................................................................................41 Paired Comparisons ................................................................................42

Definition of Consensus

• I believe you understand my point of view. • I believe I understand your point of view. • Whether or not I prefer this decision, I will support it because it

was reached openly and fairly.



List Reduction What list reduction is

List reduction is a systematic way of processing the output of a brainstorming session. The objective of list reduction is to clarify, combine, and reduce a large number of options into a manageable number. Then tools such as weighted voting or criteria rating forms can be used to help you make your final selection.

What list reduction looks like

Here is an example showing how Bob's Team in Harrisburg reduced its brainstormed list of potential problems. Team members first identified and ranked their team project goals: 1. Does this problem lend itself to being solved by our

team? 2. Is the problem within our control? 3. Is it worth solving? Using these general criteria, team members voted and reduced the list of ten to four (the items not bracketed). This was done by simple majority vote. Next, like items were combined, and since their list, was now less than the target of six, they were ready to apply another quality tool to prioritize and select their problem. If Bob's team had more than six items still on their list, they would have applied additional criteria, e.g., impact on quality, timeliness, or cost.

Potential Problems [Lack of work available] [Inadequate work tables] Material flow on 8-inch line [Bad lighting] Lack of incoming quality control Process out of date [Lack of safety precautions] [Lack of crossover at 8-inch line] [Station 5 wire cutting] Defect rate on 8-inch line



How to use list reduction

Step 1: Share Opinions On Benefits and Drawbacks

Using “Reacting” verbal behaviors only, the group shares opinions on the benefits and drawbacks (advantages and disadvantages) of the various options. The diversity of opinions allows the group to more completely examine and understand the relative merits of each option. Input is limited to opinion giving only, no debate is allowed. Further clarity may be produced by this exercise.

Step 2: Identify Filtering Criteria

Then the group identifies some "filters." These are general criteria that the group feels should be satisfied for an item to remain on the list.Some filtering criteria for selecting problems are: • Does this problem lend itself to being solved by the group? • Is the problem within our control or influence? • Is it worth solving? Some filtering criteria for selecting corrective actions/solutions are: • Is it likely to solve the problem? • Is it actionable? • Is it within our charter? • Does this corrective action/solution deserve further consideration?

Step 3: Vote and Remove

Brackets Keeping the agreed criteria in mind, group members vote on each item. A simple majority vote keeps an item on the list. Items that don't receive a majority vote are bracketed. Items are bracketed rather than crossed out so that the group can go back to them later if necessary. Humorous or obviously irrelevant items would also be bracketed, with the originator's consent. A new item, or combination of items, may arise and can be added if the group agrees. In addition, a single member may request reconsideration of any bracketed item if they feel strongly that the group should continue to consider it. This is necessary to maintain participation if a valid group consensus is to be reached.

Step 4: Combine The items on the reduced list should now be further clarified and combined as appropriate to result in six or fewer specific alternative ideas. The process may be repeated, with different or more stringent criteria, until the list is reduced to a manageable number. A flowchart showing the steps of list reduction combined with final selection process steps is shown on the next page of this guide.



LIST REDUCTION

1. Clarify the listIdentify pros and cons

Brainstormlist of Ideas

2. Identify filtering criteria

Six orfewerideas

Additional or morestringent criteria

Identify the methods andcriteria for final selection

Apply the methods and criteria,and make final selection

Selectedidea

3. Voting andremoving brackets

4. Combining

No

Yes





Criteria Rating Forms

Criteria Options

A 5 3 1

B 4 2 3

Total 9 5 4

What criteria rating forms are

Criteria rating forms, also known as Prioritization Matrices, are simply matrix displays of different ideas. The purpose of doing this is to better understand how they compare to each other based on an agreed set of criteria.

If you've ever made a major purchase, such as a car or a house, you've probably used a criteria rating form to evaluate each alternative with respect to each of your selection criteria. In buying a car, for example, you would consider such criteria as cost, mileage, comfort, trunk space, and repair record.

If you listed these on a sheet of paper and rated (say, on a scale of 1 to 5) the three cars you were considering on each of the factors, you would have constructed a criteria rating form. Adding the scores for each car gives you a relative rating of the cars under consideration.

Criteria can be treated equally or they can be weighted relative to each other. Mileage may be three times more important than trunk space and cost may be twice as important as mileage. In that case, the score for cost would be multiplied by 6; likewise, the score for mileage would be multiplied by 3. The scores for each factor are then summed as above.



What criteria rating forms look like

The example below is a criteria matrix used to select a new vehicle. On page 36 is a blank criteria rating form which can be used to rate alternatives against a set of criteria.

CRITERIA RATING FORM Criteria and Scales Weighting Alternatives

Jeep Sedan Mini-van

Gas mileage 5 4 3 2 1 Great Poor

1.5 1.5 x 2 = 3 1.5 x 5 = 7.5 1.5 x 2 = 3 weight x rating

= weighted

Passenger space 5 4 3 2 1 Great Poor

1 1 x 1 = 1 1 x 2 = 2 1 x 5 = 5 rating

Safety record 5 4 3 2 1 Great Poor

2 2 x 2 = 4 2 x 4 = 8 2 x 3 = 6

Cost 5 4 3 2 1 Low High

1 1 x 1 = 1 1 x 4 = 4 1 x 2 = 2

Comfort 5 4 3 2 1 Great Poor

1 1 x 3 = 3 1 x 3 = 3 1 x 2 = 2

Looks 5 4 3 2 1 Great Poor

.5 .5 x 5 = 2.5 .5 x 2 = 1 .5 x 1 = .5

Total Weighted Rating

14.5

25.5

18.5



How to use criteria rating forms

• Select alternatives (e.g., problem statements, potential corrective actions/solutions, or as in the preceding example, cars). • Decide what criteria to use to evaluate the alternatives. • Reach agreement on the definition of each criteria. • Determine what, if any, weights should be assigned. Agree on the scale to be used (e.g., 1 to 4 or .5 to 2 in increments of .5) to rate the options. • Sometimes scales are reversed to make it easier to compare options. For example, cost is a factor that has a negative impact, so you may want to flip the scale: 5 = low cost, 1 = high cost. • Individually rate the options. • When working in a group, discuss each "cell" on the form to arrive at a consensus rating. It's best to look at all options (e.g., potential corrective actions/solutions) and rate them on a particular criterion at the same time. The group may determine that corrective action/ solution "C" provides the greatest control. Assigning it the highest value then makes it easier to assign ratings to the other options, relative to corrective action/solution "C".

CRITERIA RATING FORM

Criteria and Weighting Alternatives Scales (if applicable)

Total Points

Directions: As a group, identify and define the criteria to be used in evaluating problem statements. Enter the criteria and scales (e.g., 1 = little, 5 great) in the boxes on the left. Write abbreviated statements of alternatives being considered (e.g., "problem topics" or "solutions") in the boxes across the top. Work across, evaluating all alternatives against the first criterion, then the second, and so on. You may decide to assign weighting factors to some criteria. If "control" is critical, you may wish to weight it twice as much as the other factors by multiplying its score by 2 before entering it in the grid.



Suggested Criteria: Control: The extent to which the group controls the problem and can control the

corrective action/solution. Importance: The seriousness or urgency of the problem.

Difficulty: A judgment about the relative difficulty of working through the problem to a corrective action/solution.

Time: A judgment about the relative length of time it will take to resolve the problem.

Return On Investment: The approximate, expected payoff from solving the problem. Resources: The amount of resources required to solve the problem (people, time,

money, equipment, etc.).

POINT SCORING IS AN ALTERNATIVE RATING SYSTEM POINT-SCORING EVALUATION OF FOUR HOUSES IN OAKDALE

Max Points 142 Elm 64 Ridge 29 Center 416 Porter Location 250 200 150 175 100 Distance to work 150 100 50 90 125 Cost 100 60 40 80 100 Easy maintenance 250 200 150 150 50 Floor plan 150 150 150 130 100 School 100 100 100 90 75 Totals 1000 810 640 715 550

How to use a point-scoring system

• As in criteria rating forms, the first step is to determine (and define, if necessary) the criteria to be used.

• Then distribute the points (100 or 1000 are good numbers to use) among the criteria, in proportion to their importance.

• Review all options with respect to the first factor, and decide, as a group, how many points to allocate to each. This number can range from 0 to the maximum assigned to the factor. Looking at all the options with respect to a single factor allows the group to make relative judgments.



Balance Sheets

+ -

What balance sheets are

Balance sheets allow the identification, documentation and review of the pros and cons of a variety of options. They are simpler and quicker to apply than most of the other tools in this section and may be all that is necessary to spark consensus in a group.

What a balance sheet looks like

This is a balance sheet showing the pro's and con's of three methods of brainstorming.

BALANCE SHEET ON BRAINSTORMING METHODS

+ (Advantages) - (Disadvantages)

Freewheeling

• Very spontaneous • Tends to be creative • Easy to build on others' ideas

• Strong individuals may dominate the session • Confusion sets in • Ideas may be lost when too many talk at once

Round Robin • Difficult for one individual to dominate • Discussion tends to be more focused than

other approaches • Everyone is encouraged to take part

• Difficult to wait one's turn • Some loss of energy • Reluctance to pass • Not as easy to build on others' ideas

Slip Method • Anonymity allows sensitive topics to surface • Can be used with very large groups • Not necessary to speak out

• Not possible to build on others’ ideas • Slow pace • Difficult to clarify ideas

How to use balance sheets

Set up a large grid with two columns and a row for each of the options. Label the columns "+" and "-"; then enter the positive and negative aspects for each of the options in turn. The "+" and "-" aspects are ordinarily not paired.



Weighted Voting

What weighted voting is

Weighted voting is a way to quantify the positions and preferences of group members. The group is given a number of votes that they can distribute among the various options. Weighted voting is useful for "taking the temperature" of the group as it is working toward consensus. It identifies the positions and priorities of the group.

Weighted voting does not make decisions. It merely gives the group information about where individual members stand and how strongly their opinions are held. This information makes it easier for opposing viewpoints to surface. Consensus cannot be reached without dealing with those viewpoints.

What weighted voting looks like

Here's an example of weighted voting used by a family trying to reach consensus on where to go on vacation next year. Each member had six votes to distribute among four options.

A B C D Dad 1 2 2 1

Mom 1 0 1 4 A: Disney world Lauren 3 1 1 1 B: Camping in Yellowstone

Matthew 4 1 1 0 C: Myrtle Beach Michael 1 1 1 3 D: Grandparents

How to use weighted voting

Set up a grid—members by options, as shown below-on a flip chart. Give each member a number of votes to distribute in accordance with their preferences. As a rule of thumb, the number of votes should be at least 1 1/2 times the number of options. Members then decide how to distribute their votes among the options to indicate their relative preferences.

• Encourage people to spread their votes rather than lump all their votes on a single favorite. • Have members decide how they will distribute their votes before any votes are recorded. • Ask members to show their votes for each option, all at once, by raising the number of

fingers that represent their vote. (Literature Distribution has voting booklets, # 296091 ) • Call for the votes for the first option, the second, and so on. Record all votes so that the

group can see where the agreements and disagreements lie. It's therefore preferable not to include a sum line on the bottom that may bias the decision.



Paired Comparisons

What paired comparisons are

Like weighted voting, using paired comparisons will help an individual or a group to quantify opinion or data based preferences. Each option (i.e., a potential solution) goes head-to-head against every other option. In each "face off", members vote for the option they prefer. Votes are recorded and totaled when all possible comparisons have been made.

The power of paired comparisons comes from the choices it forces group members to make. Even when two alternatives seem equal, members must choose one or the other. Having to make difficult choices often leads people to see advantages (or disadvantages) they may not have noticed before.

The highest total on the paired comparisons chart does not automatically become the group's decision. In working toward consensus, the group can focus discussion on the two or three highest-scoring options.

What paired comparisons looks like

The weighted voting example shows how a family used that technique to work toward consensus on where to go on next year's vacation. The chart below shows the family's use of paired comparisons. Options A vs B A vs C A vs D B vs C B vs D C vs D Totals

A 4 4 3 -- -- -- 1

B 1 -- -- 1 2 -- 4

C -- 1 -- 4 -- 1 6

D -- -- 2 -- 3 4 9

A: Disney World B: Camping C: Beach D: Grandparents

How to use paired comparisons

Set up a grid such as the one shown in the example. The number of possible comparisons depends on the number of options. • In each comparison, each member has one and only one vote. He or she must decide which of

the two alternatives is better. The total number of votes cast in any comparison must equal the number in the group.

• Everyone must cast a vote in each comparison, even if neither choice is very appealing.



Tools for Documenting Processes / Planning Actions

Table of Contents Page Flowcharts ..................................................................................... 44 Gantt Charts .................................................................................. 46 Program Evaluation and Review Technique (PERT) Charts ......... 48 Value Stream Map......................................................................... 49



Flowcharts

What flowcharts are

Flowcharts show the inputs, activities, decision points, and outputs for a given process. There are many variations that have been adapted for specific purposes. Process Maps are a specific type of flowchart used in Tyco Electronics.

What a flowchart looks like

Presented below is a flowchart of an approach used by many groups to work through a process management cycle.

PROCESS MANAGEMENT FLOWCHART

Deploy objectives and

action plans

Key business processes

Identify critical work processes

Meeting customer

needs?

Monitor performance

Benchmark best practices

Use the DMAIC process

Document work processes

No

Yes

Improvement Opportunity

identified No

Yes

Document performance gaps

Use 8-D Problem Solving

Corrective Action taken



How to construct a flowchart

Flowcharts use standard symbols connected by arrows to show how the system or work process operates. To construct a flowchart, identify the major activities to be completed and decisions to be made as the recommended corrective action/solution is implemented. Then check the logic of the plan by following all possible routes through the chart to ensure that you have planned for contingencies.

The following symbols are used when creating flowcharts.

Input/Output

Parallelograms represent inputs and outputs. An input begins your work process and an output completes it. Additional inputs or outputs may occur during the work process.

Activity/Task

Rectangles represent an individual activity or task in the work process. These assignable steps are identified and placed in the correct sequence.

Yes

NoDecision?

Diamonds represent decision points in the work process. Decision points are questions we ask about conditions as they exist at a specific point in the work process.

Connector

Circles represent connectors, used at the bottom of one page and the top of the next page, to indicate that the flowchart is continued. They are also used to move from one place in a process flow to another point. Alphabetic characters are usually used inside the circle to eliminate confusion.

Arrows connect symbols to indicate process direction.



Gantt Charts What Who When J F M A M A Jim -------| B Sue |--------|

C Lynn ----------------|

D Bill/Jim |----|

What Gantt charts are

A Gantt chart is a diagram that documents the schedule, events, activities, and responsibilities necessary to complete a project.

What a Gantt chart looks like

The form on the next page is an example of a Gantt chart. Although there are many variations, all Gantt charts document what is to be accomplished, by whom, and when. This chart also allows documentation of the assumptions underlying an implementation plan. For example, if the plan is based on installation of equipment by May 15, that assumption can be noted.

How to use a Gantt chart

• Break the implementation plan into achievable steps.

• Assign responsibility for each step to a group member.

• Decide how long each task will take, and set a realistic completion date.

• Document the assumptions on which the plan is based and the contingency plans to implement if those assumptions are not valid.



Gantt Chart

Problem statement As is: Desired State: Result Measure: Corrective Action/Solution ___________________________________________________________

Schedule

Task Assigned to



Program Evaluation and Review Techniques (PERT) Charts What PERT charts are

Consider using a PERT chart for documenting and monitoring a complex implementation plan or one involving considerable expense. PERT is a derivation of a type of chart called Activity Network Diagram (AND).

PERT is an acronym formed from the words, “Program Evaluation and Review Technique." Originally developed to improve the management of defense contracts, it is particularly good for complex or novel projects. It was the first of many network management techniques, such as Critical Path Method (CPM). A PERT chart shows all the events that must occur to allow the entire project to be completed within that time estimate.

What a PERT chart looks like

A sample PERT chart for planning and conducting staff meetings is shown below. The events are numbered (1-7). The time (in minutes) for each event is shown below the line.

PERT CHART FOR STAFF MEETINGS

1Developmeetingagenda

90 min2

Writememo

20 min3

Sendmemo

5 min4

Reserveroom

Requestcoffee

5Conductmeeting

180 min6

Evaluatemeeting

15 min7

5

5 min

1 min

Heavy line = Critical Path, a total of 315 minutes

How to make a PERT chart

To make a PERT chart, you must: • Identify the required activities • Determine the dependencies (e.g., both activities 1 and 2 must precede activity 3) • Estimate the time required for each activity With this information you can build a “network" like the one shown. Of the various "paths," the

"critical path" (often drawn as a heavier line) shows the minimum elapsed time that is required to complete the project as defined.

Project costs may be allocated to the activities (or clusters of activities) so that both time and money can be monitored throughout the project.

T5

T3

T4

T2 T1



Value Stream Map The Value Stream Map is a type of process map that displays key process flow and data, and also

summarizes key metrics. It is used as a one-page summary for Six Sigma Projects. The Value Stream Map should be hand-written rather than computer generated, using flow diagram symbols that include “Lean” factors such as kanbans and cycle time. A sample is shown below, and a blank form follows.



402-105 OTHER TOOLS DESCRIPTIONS


Other Tools Descriptions

Table of Contents Page Affinity Diagrams .......................................................................................... 52 Bar Charts .................................................................................................... 52 Benchmarking .............................................................................................. 52 Breakthrough Event ..................................................................................... 52 CEDAC......................................................................................................... 52 Control Charts .............................................................................................. 52 Cp and CpK.................................................................................................. 53 Data Flow Diagrams..................................................................................... 53 Error Proofing............................................................................................... 53 Experts/Expert Input..................................................................................... 53 Failure Mode and Effect Analysis (FMEA).................................................... 54 Fault Tree Analysis ...................................................................................... 54 Focus Groups............................................................................................... 54 Focused Area Improvement Event (FAIE).................................................... 54 Functional Analyst Systems Technique (FAST) Diagrams........................... 54 Hypothesis Testing....................................................................................... 55 Interrelationship Diagrams ........................................................................... 55 KANBAN ...................................................................................................... 55 Matrix Diagrams ........................................................................................... 55 Measurement Map ....................................................................................... 55 Procedure Sheets ........................................................................................ 56 Process Capability Analysis ......................................................................... 56 Process Map (Systems Diagram)................................................................. 56 Quality Function Deployment ....................................................................... 56 Quick Change-Over – SMED / SMEM ......................................................... 57 Root Cause Analysis Diagrams.................................................................... 57 Scatter Diagrams ......................................................................................... 57 Sensitivity Analysis....................................................................................... 57 Simulation/Gaming....................................................................................... 57 Standard Operations .................................................................................... 57 Stratification ................................................................................................. 58 T-Charts ....................................................................................................... 58 Time-Motion Studies .................................................................................... 58 Tree Diagrams ............................................................................................. 58 Total Productive Maintenance...................................................................... 58 WorkPlace Organization............................................................................... 58

OTHER TOOLS DESCRIPTIONS 402-105


Tool Label Description Utility Affinity Diagrams Gathers large amounts of language

data, organizes it into groupings based on the natural relationship between each item and groups of items. Also known as KJ Method (after its inventor Jiro Kawakita).

A creativity tool used to organize large amounts of information such as opinions, ideas, issues, etc. Imposes order on chaotic information, displays and clarifies relationships and equalizes the power of group members.

Bar Charts Graphical display of information with several topics along the X axis and units of measure along the Y axis. The magnitude of each topic is displayed with a "bar" extending from the X axis.

Visual display of the magnitude of different topics, relative to each other. Can also show change in magnitude for one topic at different point in time, place, etc.

Benchmarking Identifying the characteristics of a group of organized activities in order to identify performance improvement opportunities. Includes flowcharting, identification of key decision points, comparing in-process and results measures to targets and identification of gaps. (Provides entry point for undertaking 8D / 7 Step activity.)

Systematic view of performance as seen by the customer for the output and the in-process measures that indicate process capability to meet customer requirements. Encourages cross functional teamwork to identify end-to-end process performance, as viewed by the customer.

Breakthrough Event (Factory Breakthrough Event)

Implementing the Focused Area Improvement Event (FAIE) concepts throughout an entire factory at one time.

Achieves the benefits of a FAIE through a large-scale transformation of the factory.

CEDAC (Cause and Effect Diagram with the Addition of Cards) The fishbone diagram is posted as a chart in the work area for anyone to add problems and solutions using stick-on notes (cards)

Provides broader participation and longer-term use of the Cause and Effect Diagram. Requires effective administration and leadership to prevent its becoming “wallpaper.”

Control Charts Graphical method for monitoring and evaluating whether a process is or is not in a state of statistical control (stable).

Used to show variability in the work process is either random or due to unique events. Supports prevention by showing whether a process is in or out of control or if there is a trend toward the process being out of control.



Tool Label Description Utility Cp and CpK Cp measures the ability of the

variation in your process to fit within the specification limits (derived from customer requirements.) CpK measures the location of your process mean in comparison with the nearest specification limits.

Cp answers the question: Will my process variation fit within the specification limits? CpK answers the question: Is my process centered within the specification limits?

Data Flow Diagrams Display of the major activities performed to produce an output. Consists of “bubbles" for each activity, arrows between activities labeled with the outcome of the preceding activity, and arrows into each bubble showing contributing information resources needed to accomplish the “bubbled" activity.

Provides visual display of the activities, outcomes, and supporting resources needed to produce an output.

Error Proofing A variety of tools and techniques that make it impossible to make an error or produce a defect. Syn: fail-safe, mistake proofing, Poka-Yoke.

Reduces scrap and downtime.

Experts/Expert Input Surveying or interviewing knowledgeable people in the field under investigation and presenting findings for team evaluation. Note: Does not require the expert be asked to solve the problem or issue.

Bringing the views of those with great experience and success in the subject provides views and information that would not be normally available to the team.



Failure Mode and Effect Analysis(FMEA)

The systematic analysis of a product, service, or activity to identify all possible failure modes and the effect the failure will have on the rest of the system or process.

Documentation is used to identify areas of improvement and possible error-proofing opportunities.

Fault Tree Analysis Type of Tree Diagram. Defects, errors or faults are identified on the left with causes displayed as you move to the right.

Systematically identifies the causes of process failures. Examination of the causal relationship of faults, defects etc. can lead to understanding of common or root causes.

Focus Groups A customer focused research meeting of a small cross-section of representative customers during which customer attitudes, feelings, or emotions regarding product or service offerings are uncovered. A moderator leads the group through a controlled set of topics to probe customer reaction to the focused topic of the research.

Efficient and data based technique to gather objective information prior to the committing of resources to the marketing of a new product or service.

Focused Area Improvement Event

Implementing the concepts of standard work, just-in-time techniques, and synchronous manufacturing. Also known as “lean manufacturing.”

Improves product flow, reduces inventory and scrap, improves throughput and increases employee involvement by analyzing and then redefining the work that is required to perform the process.

Functional Analysis Systems Technique (FAST) Diagrams

Functional Analysis Systems Technique (FAST) Diagram is a visual display of the functional relationships between the components of a system. Elements are connected based on their “How—Why” relationship such that the “How" for an element can be observed by examining the element(s) on the right and the “Why” for an element can be observed by examining the element(s) on the left. (A type of Tree Diagram)

With this display the need for every element/step can be understood. It often identifies unnecessary steps which simplify the process and reduce resources required.



Hypothesis Testing Statistical technique that compares

two sets of data and estimates the probability of their representing different populations to a selected level of confidence.

Provides statistical confirmation that assumptions about the underlying distribution of a process are correct. (e.g. the process centerline has not changed)

Interrelationship Diagrams Takes a central idea, issue or problem, and maps out the logical or sequential links among related items. Arrows going into or out of an item clarify the significance of the time relative to the topic. AKA Interrelationship Diagram, Relationship Diagram

Used to understand the interrelationships between variables in complex problems by using logical links. Allows logical patterns to occur. Provides a context for a systems view of complex processes so those sub components can be flowcharted.

KANBAN A method of Just-in-Time production that uses standard containers or lot sizes and a “pull system” in which work centers signal with a card that they wish to withdraw parts from feeding operations or suppliers.

Reduced levels of inventory at all levels and savings on carrying costs. Reduced scrap costs.

Matrix Diagrams Displays the relationship between a number of variables. Matrix types can vary based on the types of data: - "L Matrix" is two dimensional - “T Matrix" allow for three variables to be displayed -“ X Matrix" allows four variables to be displayed. (four quadrants) - "Prioritization Matrix" is a specific display of alternatives along horizontal axis and criteria along the vertical axis. AKA Criteria Rating Forms

Organizes large numbers of pieces of information such as characteristics, functions, and task into sets of items to be compared; Can also code each relationship to show its strength and the direction of its influence. Facilitates team consensus building.

Measurements Map A type of tree diagram which displays the hierarchical relationship of performance measurements. The “results measure" is displayed to the left and the supporting "results measures" and “process measures" are ordered to the right. Usually expressed in the form of Tier 1, Tier 2, Tier 3, etc. measurements.

Visually identifies the relationship of performance measures. Allows the selection and simplification of performance measure reporting.



Procedure Sheets Documentation describing the detailed activities, responsibilities, and resources needed to accomplish a process. Usually in the form of a table with columns for the: • Process step • Who does the step • When it’s done • How it’s done, with details

sufficient to allow the untrained worker to perform the function.

Provides standardized repeatable method for accomplishing a task. Allows for training and communication consistency, maintenance of measurements specific to key decision points in the process. Enables process improvement.

Process Capability Analysis A pictorial representation of the data collected from individual process measurements over a period of time. After plotting the data a centerline can be drawn and variation compared to predetermined upper and lower specification limits. A type of Time Chart (Run Chart).

Enables decision making on the stability and predictability of a process to meet pre-required specifications. Indicates the degree to which the process can be expected to perform with in specification limits.

Process Map (Systems Diagrams)

An analysis of the sequence of events required to complete a specific business process. Process Maps indicate the organizations or functions which perform a particular business activity. AKA: Cross-Functional Process Map, Systems Diagrams

Provides visual logic path of the sequence of events needed to achieve a desired output. Provides two dimensional view of events overtime and who is responsible for accomplishing a particular activity.

Quality Function Deployment Process for identifying the needs of the customer (voice of the customer), and translating them into product and services that meet customer requirements and improve productivity. Specialized types of Matrix Diagram are used to relate customer requirements to supplier specifications. Succeeding matrices cascade requirements until all enabling sub-elements have been accounted for.

Permits the display of complex relationships between customer requirements, process requirements, and supplier specifications.



Quick Change-Over (SMED SMEM: Single minute exchange of dies / molds)

The concept of setup times of less than 10 minutes, developed by Shigeo Shingo in 1970 at Toyota.

Increased machine utilization, lower lot sizes for less inventory, increased flexibility of the manufacturing process for reductions of lead time, and better on-time delivery.

Root Cause Analysis Diagrams

A graphic representation of the causes, effects, and interactions of a process dysfunction. Supports the analysis and display of causes and effects. (The causes move from left to right and the effects from right to left) The diagram is a much more in-depth cause and effect tool that the Fishbone diagram. The question that should be asked repeatedly in order to create the diagram is “Why could this be occurring?"

Used in the process of doing Root Cause Analysis, the RCA Diagram helps the team organize the potential causes to a problem and visually leads to the discovery of root causes.

Scatter Diagrams Graphical two-dimensional display of the relationship between two variables. e.g. age and income. The patterns formed by the data points can indicate a positive correlation, negative correlation, no correlation, non-linear correlation, etc.

It shows if a relationship exists between two factors and the strength of that relationship. Enables the prediction of the occurrence of one factor from the value of another factor.

Sensitivity Analysis Analysis technique to examine the impact on the output of a process or system from varying the magnitude of one or more of the inputs.

Allows estimation of the effect of a change of an input on the output of a process, prior to actually committing resources.

Simulation/Gaming Using a mathematical model of a system or process to simulate the operation of the process. Discrete or probabilistic calculations are made based on assumptions for the process est. by the examiner. Designed (statistically designed) experiments can be conducted to optimize a process or system.

Allows simulation of varying process dynamics and levels of variable so that total process optimization can be achieved.

Standard Operations: • Takt time • Work sequence • Standard WIP • Worker cycle time

Used in the Focused Area Improvement Event, these techniques balance worker and machine times to customer demand. (Basic industrial engineering tools + lean manufacturing concepts.)

Increased productivity and customer responsiveness with minimum inventory.



Stratification Classifying data into categories or groups based on characteristics.

When data is made up of different sets, variations can be uncovered by isolating each subgroup. e.g. heights of children can be better understood if data for boys and girls is viewed separately

T-Charts Two labeled columns forming a "T" on a document which show the one-to-one relationship between two sets of items.

Provides clear identification of the relationships between elements of a multifaceted topic. e.g. Customer requirements vs supplier specifications

Time-Motion Studies Industrial engineering technique for observing and documenting required times and movements to accomplish a specific task.

Provides basis for setting standard times for accomplish an output. Basis for measuring improvements to existing processes.

Tree Diagrams Breaks a plan into increasing levels of detail and maps all the tasks required to accomplish the objective. One of the 7 management tools for quality control.

Visual display of all expected activity gives a realistic view of what needs to be done. Can validate that planned tasks (on the right) are sufficient to accomplish objective (to the left).

Total Productive Maintenance (TPM)

Preventive maintenance plus continuing efforts to adapt, modify, and refine equipment to eliminate causes of failure and to assure equipment up-time.

TPM is based on the maintenance system used in the airline industry. The goal of TPM is elimination of unplanned downtime and major equipment failures.

Workplace Organization The arrangement of tools, equipment, materials, and supplies according to their frequency of use. Those items that are never used are removed from the workplace, and those items that are used frequently are located for fast, easy access and replacement.

Increased worker efficiency and productivity, reduced errors and scrap,

402-105 TOOLS INDEX


Tools Index

Tool Title Page Affinity Diagrams ........................................................................... 52 Balance Sheets ............................................................................. 40 Bar Charts ..................................................................................... 52 Benchmarking ............................................................................... 52 Breakthrough Event.......................................................................52 Brainstorming ................................................................................ 26 Brainwriting.................................................................................... 28 Cause-And-Effect Diagrams (Fishbone)........................................ 10 CEDAC.......................................................................................... 52 Checksheets.................................................................................... 2 Control Charts ............................................................................... 52 Cost-Benefit Analysis .................................................................... 22 Cp and CpK................................................................................... 53 Criteria Rating Forms .................................................................... 36 Data Flow Diagrams...................................................................... 53 Experts/Expert Input...................................................................... 53 Failure Mode and Effect Analysis (FMEA)..................................... 54 Fault Tree Analysis........................................................................ 54 Flowcharts ..................................................................................... 44 Focus Groups................................................................................ 54 Focused Area Improvement Event (FAIE)..................................... 54 Force Field Analysis ........................................................................ 8 Functional Analyst Systems Technique (FAST) Diagrams............ 54 Gantt Charts .................................................................................. 46 Histograms .................................................................................... 20 Hypothesis Testing........................................................................ 55 Interrelationship Diagrams............................................................. 55

TOOLS INDEX 402-105


Interviewing ..................................................................................... 4 KANBAN........................................................................................55 List Reduction................................................................................ 32 Matrix Diagrams ............................................................................ 55 Measurement Map ........................................................................ 55 Paired Comparisons......................................................................42 Pareto Analysis ............................................................................. 16 Pie Charts...................................................................................... 12 Program Evaluation and Review Technique (PERT) Charts ......... 48 Procedure Sheets.......................................................................... 56 Process Capability Analysis .......................................................... 56 Process Maps (Systems Diagram) ................................................ 56 Quality Function Deployment ........................................................ 56 Quick Change-Over – SMED / SMEM........................................... 57 Root Cause Analysis Diagrams..................................................... 57 Run Charts .................................................................................... 14 Scatter Diagrams........................................................................... 57 Sensitivity Analysis........................................................................ 57 Simulation/Gaming ........................................................................ 57 Standard Operations .....................................................................57 Stratification................................................................................... 58 Surveying/Questionnaires ............................................................... 6 T-Charts ........................................................................................ 58 Time-Motion Studies .....................................................................58 Tree Diagrams............................................................................... 58 Total Productive Maintenance ....................................................... 58 Value Stream Map......................................................................... 49 Weighted Voting ............................................................................ 42 5 WHY Analysis............................................................................. 18 Workplace Organization ................................................................ 58

402-105 VARIABILITY


VARIABILITY -- TABLE OF CONTENTS:

Types of Data ___________________________________________________________________2 Definitions ______________________________________________________________________3 Data Exercise (Parkbench) _________________________________________________________4 Process Flowchart ________________________________________________________________6 Bar Chart _______________________________________________________________________6 Pie Chart _______________________________________________________________________6 Line Chart_______________________________________________________________________7 Checksheet _____________________________________________________________________7 Fishbone _______________________________________________________________________8 Pareto Chart_____________________________________________________________________8 Histogram_______________________________________________________________________9 Scatter Diagram __________________________________________________________________9 Correlation Coefficient ____________________________________________________________10 Process Control Chart ____________________________________________________________11 Chart of Charts__________________________________________________________________12 Choosing the Correct Control Chart__________________________________________________13 Methods of Managing a Process Quincunx Exercise _______________________________________________________________15 Percent of Area Under the Curve____________________________________________________16 Process Control Charts What is a Control Chart? __________________________________________________________17 How Do We Determine Control? ____________________________________________________17 Two Basic Uses of Control Charts ___________________________________________________17 Process Control Chart - Using Zones_________________________________________________18 A Type of Control Chart: X-bar and R ________________________________________________19 Reading an X-bar and R Control Chart _______________________________________________20 Zone Test for Control _____________________________________________________________29 Attribute Control Charts ___________________________________________________________30 Interpretation of Attribute Control Charts ______________________________________________33 Attribute Charts versus Variables Charts ______________________________________________33 Process Capability Process Capability Assessment Cp __________________________________________________40 Process Capability Assessment Cpk _________________________________________________43

Measurement System Analysis Sources of Variation______________________________________________________________48 Precision and Accuracy ___________________________________________________________50 Performing a Gage R&R Study _____________________________________________________53

402-105 VARIABILITY


Variability

Understanding Variation Purpose: To understand the nature of data and variation and its effects on process performance Process: • Review types of data.

• Understand the measures of central tendency and variation.

• Review the types of charts to use.

• Introduce the concept of Normal Distribution.

• Introduce the concept of Process Capability.

• Introduce the concept of Process Control charts.

• Discuss the interpretation of Process Control charts.

VARIABILITY 402-105


Types of Data

Scale Definition Example Nominal Grouping of data by

labels or names Accounting, Personnel,

Small, Medium, etc.

Yes / No Data exists in only two

states Exempt / Non-exempt

Pass / Fail Good / Bad

Ordinal Ranking of data into a position in a series

Survey Rating Scales, Patient Acuity Level

Interval

Data falls on a continuous numerical

scale

Expenses ($), Time, Revenue, Dimensions

Identify the type of data and the appropriate measurement scale: VI = VARIABLE / INTERVAL SCALE AO = ATTRIBUTE / ORDINAL SCALE AN = ATTRIBUTE / NOMINAL SCALE AY = ATTRIBUTE / YES/NO SCALE _____ Sweater sizes "small," "medium," "large," and “X-large” _____ Manufacturing, Accounting, Personnel, and Marketing _____ Number of copies per machine, per month _____ Your pay grade level _____ Your Social Security Number _____ Numerical performance rating scales _____ Your monthly or yearly salary _____ Your exempt or non-exempt status

402-105 VARIABILITY


Appropriate Statistics for Data Analysis

Data Type Scale Definition Permissible Statistics Attribute Nominal Grouping of data by labels

or names Mode

Attribute

Yes/NO Data exists in only two states

Mode

Attribute Ordinal Ranking of data into a position in a series

Mode, Median

Variable Interval Data falls on a continuous numerical scale

Mode, Median, Average, Range, Std. Deviation

Definitions Measures of Central Tendency:

• Average: A central tendency measure determined by dividing the sum of the individual data points by the number of data points.

• Mode: The value most often repeated in the data set. It is a central tendency measure represented by the highest point in the distribution curve or the histogram of a data set.

• Median: The value of the data point that has an equal number of points above and below it when all the data points are arranged in ascending order of magnitude. If two values fall in the middle, the median is the average of the two.

Measures of Variation:

• Range: A dispersion measure representing the difference between the highest and the lowest values in the data set.

• Standard Deviation: A dispersion measure representing how close or how far any single value is from the mean.

VARIABILITY 402-105


Parkbench

Five lousy bucks

$5$2,000

TwentyGrand! $5,000,000

• Two are vagrants and each says, "I've only got $5 to my name." • The third is a worker who says, "I've got $2,000, counting my old car and what I have in the bank." • The fourth says, "I'm doing okay. I have a car, some equity in a house, and savings. I'm worth

$20,000." • The last says, "I'm a multimillionaire. I'm worth $5 million." Calculate each of the following for the example above:

Mean: __________ Median: __________ Mode: __________

1. If you were running against the mayor in this election, which measure(s) would you use to "prove"

his or her incompetence? 2. Now, if you were the mayor seeking higher office based on your record of economic development in

this little "town" of five, which measure(s) would you use during your campaign? 3. Suppose our millionaire loses 2 million in the volatile tulip bulb market. This decreases the range

by 2 million. Which measures of the center are not affected by the change in the range?

402-105 VARIABILITY


Process Flowchart A flowchart is a pictorial representation of a process, useful for investigating opportunities for improvement by gaining a detailed understanding of how the process actually works. By examining how various steps in a process relate to each other, one can often uncover potential sources of trouble.

Getting to Work in the Morning Process Flowchart

Shake Spouse WakeSpouse?

Stop

KeepJob

Y

Y

N

Y

N

N

N

Y

Turn off Alarm

Groan

StartStart

Crawl Out of Bed

Turn on Light Dark inRoom?

Below70?

Drive to Work

Walk to Car

Kiss Spouse

Spouse needMoney? Grumble

Bath Chores

Breakfast

1

1 Turn on Heat

VARIABILITY 402-105


Bar Chart Bar charts show comparisons of quantities by the relative lengths of the bars representing them. Quantities may be frequencies of events in different locations, cost of different types of breakdowns, etc.

New Customers by Month

# of customers

0

50

100

J F M A M J J A S O N D

Pie Chart Pie Charts are graphs in which the entire circle represents 100% (not 360 degrees) of the data displayed. The circle (pie) is divided into percentage slices that clearly show the largest shares of data.

Employee Means of Transportation to Work

57%

29%

5% 9%

Drive alone Car Pool Public Trans Other

402-105 VARIABILITY


Line Chart Line Charts are employed to visually represent data. They help monitor a process to see whether or not the long-range average is changing. Points are plotted on the graph in the order in which they become available. A danger in using a Line Chart is the tendency to see every variation in data as being important. The Line Chart, like other charting techniques, should be used to focus attention on truly vital changes in the process.

Expense % of Plan

Target

80

85

90

95

100

105

110

115

J F M A M J J A S O N D J F M A M J J A

Month

Percent

Checksheet Checksheets are an easy-to-understand form used to answer the question, "How often are certain events happening?" It starts the process of translating "opinions" into "facts." Constructing a checksheet involves the following steps: • Agree on the exact event being observed. • Decide on a time period during which data will be collected. • Design a form that is clear and easy to use, making sure that all columns are labeled, and that there

is enough space to enter the data. • Collect the data consistently and accurately.

Response Time Variability Purpose: To determine the number of UM calls where Response Time is not within the specified limits.

Response Time Cells Number of Calls Total 0.0-2.0 |||| |||| || 12 2.1-4.0 |||| |||| 10

4.1 - 6.0 |||| | 6 6.1 - 8.0 ||| 3

Grand Total 31 Remarks

VARIABILITY 402-105


Cause and Effect A Cause and Effect diagram (also referred to as a Fishbone diagram) represents the potential relationship between a certain "effect" and the potential "causes" influencing it. The effect or problem is stated on the right side of the chart and the potential influences or "causes" are listed to the left.

EFFECT

Cause 3 Cause 4

Cause 1 Cause 2

Pareto Chart A Pareto Chart is a special form of vertical bar graph that helps to determine which problems to solve and in what order. Doing a Pareto Chart based upon either Checksheets or other forms of data collection directs attention and effort to the truly important problems. We will generally gain more by working on the tallest bar than by tackling the smaller bars.

100

90

40

30

20

10

50

0

60

70

80300

200

100

0

Frequency

CumulativePercent

DEFECTS

1 432 Other

402-105 VARIABILITY


Histogram A Histogram takes measurement data, e.g., temperature, dimensions, etc., and displays its distribution. This is critical because we know that all repeated events will produce results that vary over time. A Histogram reveals the amount of variation that any process has within it.

Customer Call Response Time in Seconds

Frequency

Response Time in Seconds

0.0 - 2.0 4.1 - 6.0 8.1 - 10.00

5

10

15

20

25

0.0 - 2.0 4.1 - 6.0 8.1 - 10.0

VARIABILITY 402-105


Scatter Diagram The Scatter Diagram is used to study the possible relationship between one variable and another. The Scatter Diagram is used to test for possible cause and effect relationships. It cannot prove that one variable causes the other, but it does make it clear whether a relationship exists and the relative strength of that relationship.

Billing Quality vs. Customer Satisfaction

88

90

92

9496

98

100

90 91 92 93 94 95 96 97 98 99 100

% Billing Quality

% Customer Satisfaction

Correlation Coefficient

0-0.3-0.7 1.00.70.3-1.0

Moderate correlation; substantial relationship

High correlation; marked relationship

Slight; almost negligible relationship

POSITIVE (DIRECT)NEGATIVE (INDIRECT)

402-105 VARIABILITY


Process Control Chart A Control Chart is a run chart with statistically determined upper (Upper Control Limit) and possibly lower (Lower Control Limit) lines drawn on either side of the process average. • Control Charts give us a technique used to monitor a process over time. By understanding the

patterns formed by the process, we can identify opportunities for process improvement. • Control Charts are the only tool that allow us to predict future outputs of a process and understand

the voice of the process.

X-Bar & R Control Chart

80

85

9095

100

105


0123456


Average Chart

Range Chart

VARIABILITY 402-105


Chart of Charts

Objective Type of Chart Type of Data Required To compare quantities BAR CHART Base Line: Nominal, Ordinal, or

yes,/no

Scale line: Interval

To show change in quantity over time

PLOTTED LINE GRAPH Base Line: Interval, Ordinal

Scale Line: Interval, Nominal labels

To show a proportion or a percentage of the whole

PIE CHART "Slices" are percents

To highlight most significant element(s)

PARETO CHART Base Line: Nominal, Ordinal

Scale Line: Interval (and %)

To determine cause and effect CAUSE AND EFFECT (Fishbone)

Nominal

To display a frequency distribution

HISTOGRAM Base Line: Interval

Scale Line: Interval (frequency)

To show the relationship between two variables

SCATTERGRAM Both Lines: Interval, Ordinal

To estimate the ability to produce a new output within specifications

PROCESS CAPABILITY CHART

Base Line: Interval, Ordinal

Scale Line: Interval

To show process variation over time

PROCESS CONTROL CHART Base Line: Interval, Ordinal

Scale Line: Interval

402-105 VARIABILITY


Choosing the Correct Control Chart

Variable Attribute / Discrete What Type Of Data ?

Data Collected In Groups or

Individuals ?

Counting Specific

Defects or Defective Items ?GROUPS

(Averages) (n>1)

INDIVIDUAL VALUES

(n=1)

X-Bar R X-Bar S

Individuals Moving Range

Specific Types Of “Defects”

Defective Items

Is The Probability Of A Defect

Low ?

If You Know How Many Are Bad, Do You Know How Many Are Good?

Poisson Distribution Binomial Distribution

Individuals Moving Range

NO

YES YES

Area of Opportunity

Constant In Each Sample Size ?

YES NO

C Chart U Chart

Constant SampleSize ?

NP Chart

NO YES

P Chart

NOTE: X-Bar S is appropriate for subgroup sizes (n) of > 10

VARIABILITY 402-105


Quincunx Exercise: Methods of Managing a Process Rule 1 Leave the funnel fixed, aimed at the target, no adjustment. Rule 2 Measure the difference between the observation and the target. Adjust the funnel the distance between the observation and the target in the opposite direction. If the target is 50 and the observation is 48 and the funnel is on 50, you would move the funnel to 52. If the observation is 55 and the funnel is on 50, move the funnel to 45. Rule 3 Measure the difference between the observation and the target. Move the funnel first to 50 and adjust the difference between the observation and target. If the funnel is on 48, and the observation on 55, the difference is 7. Move the funnel to 57 (Target and Difference). Rule 4 Move the funnel to the last observation. The aim is to repeat the last observation.

402-105 VARIABILITY


Quincunx Exercise: Checksheet Rule Number:

Rule 1 Rule ____ 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65

Compute the following for each sample: Mean: _________ __________ Mode: _________ __________ Median: _________ __________ Standard Deviation: _________ __________

VARIABILITY 402-105


Percent of Area Under the Curve

2 σ3 σ 1 σ1 σ 2 σ 3 σ34.13% 34.13%2.1% 2.1%13.6% 13.6%

Percent of Area Under the Curve

2 σ3 σ 1 σ1 σ 2 σ 3 σ

34.13% 34.13%

2.1% 2.1%13.6% 13.6%

68.3%95.5%99.7%

402-105 VARIABILITY


What is a Control Chart?

- 3 σ (2.1%)

+ 3 σ (2.1%)

+ 2 σ (13.6%)

- 2 σ (13.6%)

+ 1 σ (34.13%)

- 1 σ (34.13%)

Upper Control Limit

Lower Control Limit

X-bar

Note: Control limits are not tolerance limits. Later we will look at Cpk, which compares the distribution to customers’ tolerances. How Do We Determine Control? We determine process control by looking for signals that tell us things have changed based on the knowledge of the normal curve. We use the knowledge about the normal curve to determine when the process has changed and therefore major differences between the observed variation and expected variation provides us with the signals.

• Expected variation is 68% between +/- 1σ • Expected variation is 95% between +/- 2σ • Expected variation is 99.7% between +/- 3σ

Two Basic Uses of Control Charts As a judgment • Was the process in statistical control? As an operation (ongoing) • A control chart can also be used to attain and maintain statistical control during production. • The process has already been brought into statistical control (or nearly so, with only rare evidence

of a special cause). • Although it may be important, removal of special cause of variation in order to move toward

statistical control is not improvement of the process.

“The important problems of improvement commence once you achieve control." W. Edwards Deming: Out of Crisis

VARIABILITY 402-105


Process Control Chart - Using Zones

Zone A

Zone A

Zone B

Zone B

Zone C

Zone C

- 3σ

+ 3σ

+ 2σ

- 2σ

+ 1σ

- 1σ

Upper Control Limit

Lower Control Limit

X-bar

• Expected variation is 68% between +/- 1σ (Zone C) • Expected variation is 95% between +/- 2σ (Zones B and C) • Expected variation is 99.7% between +/- 3σ (Zones A, B, and C)

402-105 VARIABILITY


A Type of Control Chart: X-bar and R There are many different types of control charts that are used in many different ways. They are designed to provide information on the behavior of the process. We will be demonstrating the X-bar (average) and R (range) chart. It is used for displaying continuous interval data (measurement) from a process. This displays both the average and range, and both charts are important. The average (X-bar) is based on a sample of data from the process; each point is made up of a sample from 2 to 25 observations. These averages are plotted on the average chart. The average of these averages is noted as Xdbar or X double bar. Each sample also has a range — the difference between the highest and lowest observation. This range is plotted on the range chart (R) for each sample. This range gives us the variation of the sample and helps us to understand the reliability of the process. Below is an example of the X-bar and R chart.

1 3 5 7 9 11 13 15 17 19 21 23

0

1

2

3

Rbar = 1.5

Xdbar = 20.50

LCL ≥ 0

LCL = 19.75

UCL = 21.25

UCL = 3.0Range

19.5

20.0

20.5

21.0

21.5

XBAR

VARIABILITY 402-105


Reading an X-bar and R Control Chart

R Chart

Is it incontrol?

Is it incontrol?

X Chart

Analyze Why

Analyze Why

AssessCapability

402-105 VARIABILITY


Normal Variation Free from assignable causes of variation

0 5 10 15 20012345

Rbar

Xdbar

LCL

UCL

UCL

LCL

Ran

ge

89

1011121314

ABCCBA

XB

AR

VARIABILITY 402-105


Zone Test 1 Failure (Range) (Point Out)

Any point beyond the control limits (beyond +/- 3σ)

0 5 10 15 200

1

23

4

5

Rbar

Xdbar

LCL

UCL

UCL

LCL

Range

89

10

1112

13

14

ABCCBA

XBAR

Zone Test 1 Failure (Average) (Point Out)

Any point beyond the control limits (beyond +/- 3σ)

0 5 10 15 20012345

Rbar

Xdbar

LCL

UCL

UCL

LCL

Range

89

1011121314

ABCCBA

XBAR

402-105 VARIABILITY


Zone Test 2 Failure (Range) Two of three successive points in Zone A (between 2σ and 3σ on the same side of Rbar)

0 5 10 15 20012345

Rbar

Xdbar

LCL

UCL

UCL

LCL

Ran

ge

89

1011121314

ABCCBA

XBA

R

Zone Test 2 Failure (Average) Two of three successive points in Zone A (between 2σ and 3σ on the same side of Xdbar)

0 5 10 15 200

1

2

3

4

5

Rbar

Xdbar

LCL

UCL

UCL

LCL

Ran

ge

8

9

10

11

12

13

14

ABCCBA

XB

AR

VARIABILITY 402-105


Zone Test 3 Failure (Range) Four of five successive points in Zone B or beyond (between 1σ and 3σ on the same side of Rbar)

0 5 10 15 200

1

2

3

4

5

Rbar

Xdbar

LCL

UCL

UCL

LCL

Ran

ge

8

9

10

11

12

13

14

ABCCBA

XBA

R

Zone Test 3 Failure (Average) Four of five successive points in Zone B or beyond (between 1σ and 3σ on the same side of Xdbar)

0 5 10 15 200

1

2

3

4

5

R-bar

X-dbar

LCL

UCL

UCL

LCL

Ran

ge

8

9

10

11

12

13

14

ABCCBA

XBA

R

402-105 VARIABILITY


Zone Test 4 Failure (Range) Eight successive points in Zone C or beyond (between Rbar and 3σ) on the same side of the centerline

0 5 10 15 200

1

2

3

4

5

Rbar

Xdbar

LCL

UCL

UCL

LCL

Range

8

9

10

11

12

13

14

ABCCBA

XBAR

Zone Test 4 Failure (Average) Eight successive points in Zone C or beyond (between Xdbar and 3σ) on the same side of the centerline

0 5 10 15 200

1

2

3

4

5

Rbar

Xdbar

LCL

UCL

UCL

LCL

Range

8

9

10

11

12

13

14

ABCCBA

XBAR

VARIABILITY 402-105


Trend (Range) Eight successive points without a major change in direction

0 5 10 15 200

1

2

3

4

5

Rbar

Xdbar

LCL

UCL

UCL

LCL

Range

8

9

10

11

12

13

14

ABCCBAX

BAR

Trend (Average) Eight successive points without a major change in direction

0 5 10 15 200

1

2

3

4

5

Rbar

Xdbar

LCL

UCL

UCL

LCL

Ran

ge

8

9

10

11

12

13

14

ABCCBA

XB

AR

402-105 VARIABILITY


Mixture

Eight successive points on both sides of centerline in Zones A & B, with none in Zone C. (Eight successive points on both sides of the centerline between 1σ and 3σ, with none between +/- 1σ)

0 5 10 15 200

1

2

3

4

5

Rbar

Xdbar

LCL

UCL

UCL

LCL

Ran

ge

8

9

10

11

12

13

14

ABCCBA

XBAR

Stratification Fifteen or more successive points in Zone C; few or no points beyond Zone C

(Fifteen or more successive points between +/- 1σ)

0 5 10 15 2002468

101214

Ave

LCL

UCL

Ran

ge

4

6

8

10

12

14

16

ABCCBA

Ave

LCL

UCL

XBAR

VARIABILITY 402-105


Cycle

A repeating pattern of change

0 5 10 15 20 250

1

2

3

4

5

Rbar

Xdbar

LCL

UCL

UCL

LCL

Ran

ge

8

9

10

11

12

13

14

ABCCBA

XBA

R

402-105 VARIABILITY


Zone Test for Control Zone Test 1 Failure: One point beyond Zone A (beyond +/- 3σ -- the control limits) Zone Test 2 Failure: Two of three successive points in Zone A or beyond (same side of centerline * ) Two of three successive points between 2σ and 3σ (same side of the centerline * ) Zone Test 3 Failure: Four of five successive points in Zone B or beyond (same side of the centerline * ) Four of five successive points between 1σ and 3σ (same side of the centerline * ) Zone Test 4 Failure: Eight successive points in Zone C or beyond on the same side of the centerline Eight successive points between the centerline and 3σ on the same side of the centerline This is also known as a Shift Trend: Eight successive points without a major change in direction Mixture: Eight successive points on both sides of centerline in Zone A & B, with none in Zone C Eight successive points on both sides of the centerline between 1σ and 3σ with none between +/- 1σ Stratification: Fifteen or more successive points in either C Zone; few or no points beyond Zone C Fifteen or more successive points between +/-1σ; few or no points outside of +/-1σ Cycle: A repeating pattern of change * Sources differ on whether or not this test refers only to one side of the mean. If the data shows these characteristics on both sides, it would still be wise to investigate the process.

VARIABILITY 402-105


Attribute Control Charts

The p-chart is used to monitor any attribute that may be expressed as a percentage or a proportion.

3020100

0.10

0.05

0.00

Sample Number

Pro

porti

on

P Chart for Rejects

P=0.03833

UCL=0.09593

LCL=0

402-105 VARIABILITY


The p-Chart may be used in situations where the sample sizes are not equal. Changes in the sample sizes will result in changes in the locations of the control limits. Interpretation is somewhat more difficult since each point must be evaluated with respect to its own control limits.

0 10 20

0.0

0.1

0.2

0.3

Sample Number

Pro

porti

on

P Chart for Rejects

P=0.1685

UCL=0.3324

LCL=0.004728

VARIABILITY 402-105


The np-Chart is used to monitor any attribute that may be expressed as a count rather than a proportion. The np-Chart is only used when sample sizes are equal.

0 10 20 30

0

5

10

Sample Number

Sam

ple

Cou

nt

NP Chart for Rejects

NP=3.833

UCL=9.593

LCL=0

402-105 VARIABILITY


Interpretation of Attribute Control Charts

The interpretation of Attribute Control Charts is similar to the interpretation of Variables Control Charts except that only four tests of instability are used.

One point outside of the control limits.

Nine consecutive points on the same side of the centerline.

Seven points in a row, all increasing or decreasing.

Fourteen consecutive points alternating up or down.

Attribute Charts versus Variables Charts Attribute Control Chart

Easier and sometimes more cost effective to use. Can utilize existing inspection records or other records.

Larger sample sizes are needed.

Only provides information on changes

in the rate of defects or rejects.

Variables Control Chart

More difficult data collection. Must have exact measurements.

Smaller sample sizes are needed.

Provide more information about the

process, including process centering and spread.

Can indicate trouble in a process

before defects and rejections start appearing.

VARIABILITY 402-105


Line # 1

1 3 5 7 9 11 13 15 17 19 21 23

0

1

2

3

Rbar = 1.5

Xdbar = 20.50

LCL = 0

LCL = 19.75

UCL = 21.25

UCL = 3.0

Ran

ge

19.5

20.0

20.5

21.0

21.5

XB

AR

Definition Range AverageZone Test 1 Fail Any point beyond the control limits Zone Test 2 Fail Two of three successive points in Zone A or beyond Zone Test 3 Fail Four of five successive points in Zone B or beyond Zone Test 4 Fail Eight successive points in Zone C or beyond on the same side

of the centerline ("Shift")

Trend Eight successive points without a major change in direction Mixture Eight successive points fall on both sides of centerline in Zones

A & B, with none in Zone C

Stratification Fifteen or more successive points in either C Zone; few or no points beyond Zone C

Cycle A repeating pattern of change Normal Variation Free from assignable causes of variation

402-105 VARIABILITY


Line # 2

1 3 5 7 9 11 13 15 17 19 21 23

0

1

2

3

Rbar = 1.5

Xdbar = 20.50

LCL = 0

LCL = 19.75

UCL = 21.25

UCL = 3.0

Ran

ge

19.5

20.0

20.5

21.0

21.5

XB

AR







VARIABILITY 402-105


Line # 3

1 3 5 7 9 11 13 15 17 19 21 23

0

1

2

3

Rbar = 1.5

Xdbar = 20.50

LCL = 0

LCL = 19.75

UCL = 21.25

UCL = 3.0

Ran

ge

19.5

20.0

20.5

21.0

21.5

XB

AR







402-105 VARIABILITY


Line # 4

1 3 5 7 9 11 13 15 17 19 21 23

0

1

2

3

Rbar = 1.5

Xdbar = 20.50

LCL = 0

LCL = 19.75

UCL = 21.25

UCL = 3.0

Ran

ge

19.5

20.0

20.5

21.0

21.5

XB

AR







VARIABILITY 402-105


Line # 5

1 3 5 7 9 11 13 15 17 19 21 23

0

1

2

3

Rbar = 1.5

Xdbar = 20.50

LCL = 0

LCL = 19.75

UCL = 21.25

UCL = 3.0

Ran

ge

19.5

20.0

20.5

21.0

21.5

XB

AR







402-105 VARIABILITY


Line # 6

1 3 5 7 9 11 13 15 17 19 21 23

0

1

2

3

Rbar = 1.5

Xdbar = 20.50

LCL = 0

LCL = 19.75

UCL = 21.25

UCL = 3.0Range

19.5

20.0

20.5

21.0

21.5

XBAR







VARIABILITY 402-105


Process Capability Assessment Cp Process Capability is designed to assess the ability of the process to meet the customer's requirements. Process capability follows process control. Process capability determines the process variation and compares it to the customer’s requirements. The first step is to collect the process information and display the information on a histogram. The histogram displays the total variation the process generates. The next step is to draw the specification limits on the histogram. These specification limits are defined by the customer. Specification limits represent the lower requirement and the upper requirement. For example, if a customer wants you to respond to a problem within a range of five hours, no faster than four hours and no longer than nine hours, the lower specification limit is four hours and the upper specification limit is nine hours with a range of five hours. A Cp of less than 1 is defined as not capable, Cp of 1.0 is barely capable and a Cp of 1.33 or larger is capable. The targeted value of Cp is defined by management based on the actual performance and the process history. To calculate Cp use the formula: Cp = USL - LSL 6σ

2.5 inches

USL - LSL 6σ

24 - 12 6 (2.5)

0.8

σ =

LSL = 12 inches USL = 24 inches

Cp=

Cp=

Cp=

402-105 VARIABILITY


Comparison of Cp Based on Variation

24 - 12 6 (2.5)

0.8

A Curve

LSL = 12 USL = 24

Cp=

Cp=

24 - 12 6 (2.0)

1.0

B Curve

Cp=

Cp=

USL - LSL 6σ

Cp=σ = 2.0

σ = 2.5A

B

VARIABILITY 402-105


24 - 12 6 (2.5)

0.8

C Curve

LSL = 12 USL = 24

Cp=

Cp=

USL - LSL 6σ

Cp=σ = 2.0

σ = 2.5

AB

24 - 12 6 (2.0)

1.0

B Curve

Cp=

Cp=

24 - 12 6 (1.5)

1.33

A Curve

Cp=

Cp=

σ = 1.5

C

Mazda’s Process

LSL USL

Ford’s Process

Manufacturing ofTransmissions

The Japanese process used 30% of the engineered specification, while the US process used 70%. Both were within specifications. However, the warranty costs of the Japanese process were 1/3 lower, and manufacturing costs were also lower. Other improvements were transmission noise, assembly costs, maintenance costs, scrap, and inspection costs. (The Deming Route to Quality and Productivity. Scherkenbach, Cee Press, 1986.)

402-105 VARIABILITY


Process Capability Assessment Cpk Cpk is the measure of the process performance not only against the customer specifications but it also takes into account the location of the process average. Cpk is considered a measure of the process capability and is taken as the smaller of either the lower specification limit as compared to the process average or the upper specification limit as compared to the process average. The calculation helps to define if the process is in the center of the customer requirements. The measurement requirements are the same as Cp.

1.5

X bar - Nearest Spec 3σ

20 - 24 3 (1.5)

.89

σ =

LSL = 12 inches USL = 24 inches

Cpk =

Cpk =

Cpk =

x bar = 20 inches

Center of Process18 inches

VARIABILITY 402-105


Process Average The example below shows the process average in the center of the customer requirements and therefore indicates the center of the Specification Limits. In this case, the Nearest Specification is both the Upper and Lower Specification limits. If the CPK is equal to or greater than 1.33, the process is said to be capable.

1.5

X bar - Nearest Spec 3σ

18 - 24 3 (1.5)

1.33

σ =

LSL = 12 USL = 24

Cpk =

Cpk =

Cpk =

x bar = 18 inches

402-105 VARIABILITY


Process Capability Assessment

Histogram

Is it capable?

Is itwithinspec?

No

No

Processin

Control

Process in Control and Capable

VARIABILITY 402-105


3 σ 3 σ 3 σ 3 σ

99.9997%quality

Mon/Var - 303 σ 3 σ

LSL USL

99.7%quality

NOW

MOTOROLA6-SIGMA

Why did Motorola insist on 6σ?

If a product has 1000 parts, each at 99.7% good, what % of the final products would be good? Compute: .997 Yx 1000 = ________. As opposed to 1000 parts, each at 99.9997? Compute: .999997 Yx 1000 = ________.

402-105 VARIABILITY


Measurement System Analysis Before we spend the time and effort to assess the capability of a process, we need to ensure that the measuring devices that are being used are capable. If the measuring system isn’t capable, we could be accepting defective product or rejecting conforming product. For variables data, we are concerned about:

• The measuring device • The operators performing the measurement • The method used to make the measurement

For attribute data, we are concerned about:

• The operators performing the measurement • The method used to make the measurement • The criteria used to judge the results

VARIABILITY 402-105


Sources of Variation To address observed variation, the variation due to the measurement system must be identified first and then separated from the actual process variation.

Observed Variation

Actual Process Variation

Measurement Variation

Long Term Process Variation

Short Term Process Variation

Variation due to Instrument

Variation due to Operator

Repeatability

Calibration

Stability

Linearity

Within

Between

402-105 VARIABILITY


Sources of Variation The sources of variation include:

• Variation due to the instrument, including:

o Mechanical instability of the device o Electrical instability of the device o Temperature changes of the device o Changes due to use of the device (wear) o Software instability within the instrument o Calibration frequency o Maintenance of standards for primary and secondary calibration o Repeatability of the device o Stability of the device

• Variation due to operator, including:

o Operator skill / training o Operator utilization of the work method o Operator to operator skill and work method

• Additional variation includes:

o Environmental

Fluctuations in ambient temperature Fluctuations in humidity Variations in current supplied to the device Cleanliness Vibration

VARIABILITY 402-105


Precision and Accuracy Measurement system errors can be classified into two categories: accuracy and precision. Accuracy describes the difference between the measurement and the actual value of the part that is measured. Precision describes the variation that is observed when the same part is measured repeatedly with the same device. Within any measurement system, one or both of these problems can exist. For example, you can have a device that which measures the parts precisely – there is very little variation in the measurements – but not accurately. You can also have a device that is accurate – the average of the measurements is very close to the actual value – but not precise – the measurements have a large variance. Accurate and Precise

Precise But Not Accurate

402-105 VARIABILITY


Precision and Accuracy Neither Accurate or Precise

Precision or measurement variation, is a function of repeatability and reproducibility. We must have both in order to have a capable measurement system. Precision can be broken into two components:

• Repeatability – the variation due to the measuring device – it is the variation that is observed when the same operator measures the same part repeatedly with the same device.

• Reproducibility – the variation due to the measurement system – it is the variation that is

observed when different operators measure the same parts using the same device. Repeatable But Not Reproducible

VARIABILITY 402-105


Precision and Accuracy Not Repeatable and Not Reproducible

Repeatable and Reproducible

402-105 VARIABILITY


Performing a Gage R&R Study Variables Data

1. Obtain the calibrated measuring device.

2. Operator 1 measures all the samples in a random order.

3. Operator 2 measures all the samples in a random order.

4. Continue until all operators have measured the samples once – this is “Trial 1”.

5. Repeat steps 2 – 3 – 4 for the required number of trials.

6. Input the data into Minitab.

7. Analyze the results and determine the capability and any follow up actions.

Attribute Data

1. Select 3 or more operators.

2. Each operator measures 10 samples per trial.

3. Complete 2 trials.

4. Expert results are compiled.

5. Input the data into Minitab.

6. Analyze the results and determine the capability and any follow up actions. For more comprehensive information refer to Measurement Systems Analysis available through the AIAG (Automotive Industry Action Group) [ www.aiag.org ].

VARIABILITY 402-105


Performing a Gage R&R Study Example Minitab Results

Misc:Tolerance:Reported by :Date of study :Gage name:

1.11.00.90.80.70.60.50.40.3

321

Xbar Chart by Operator

Sam

ple

Mea

n

Mean=0.8075UCL=0.8796

LCL=0.7354

0.15

0.10

0.05

0.00

321

R Chart by Operator

Sam

ple

Ran

ge

R=0.03833

UCL=0.1252

LCL=0

10 9 8 7 6 5 4 3 2 1

1.11.00.90.80.70.60.50.4

Part

OperatorOperator*Part Interaction

Ave

rage

1 2 3

321

1.11.00.90.80.70.60.50.4

Operator

Response by Operator10 9 8 7 6 5 4 3 2 1

1.11.00.90.80.70.60.50.4

Part

Response by Part%Contribution %Study Var

Part-to-PartReprodRepeatGage R&R

100

50

0

Components of Variation

Per

cent

Gage R&R (Xbar/R) for Response

402-105 VARIABILITY


Performing a Gage R&R Study Interpreting the Minitab Charts In the component of variation chart, we are looking for a total Gage R&R of less than 10%. The “repeatability” bar is the variation associated with the measuring device. The “reproducibility” bar is the variation associated with the operator. Each point on the R Chart by Operator is the range of the 3 measurements on the same part by the same operator. Repeatability is the variation observed when the same operator measures the same part repeatedly using the same measuring device. When you evaluate the R Chart by Operator you are looking for stability – all the measurements should be below the UCL. When all the points are within the control limits it is an indication that the measurement system is stable. The X-bar Chart by Operator measures the part variation vs. the measurement error. The distance between the upper and lower control limits represents the measurement error. We are looking for this chart to be out of control because this means that there is more between group variation than within group variation. For the Response by Part Chart, we are looking for a relatively small dispersion. We can then determine if one of the parts is harder to measure than the others. For the Response by Operator Chart, we are looking for at parts, by all operators – so we are looking for a flat line. For the Operator Part Interaction Chart we are looking for a tight clustering of the data.

VARIABILITY 402-105


Performing a Gage R&R Study Minitab Summary Chart

Gage R & R for Response Source Variance % Contribution

(of Variance)

Total Gage R & R 2.08E-03 6.33 Repeatability 1.15E-03 3.51 Reproducibility 9.29E-04 2.82 Part-to-Part 3.08E-02 93.67 Total Variation 3.29E-02 100.00 Number of distinct categories = 5 The number of distinct categories must be 5 or greater. The lower the total Gage R&R, the higher this value. We are looking for a Total Gage R&R less than 10%.

402-105 GLOSSARY


Glossary

GLOSSARY 402-105


WORD / PHRASE DEFINITION

Affinity Diagram

A management tool that assists with general planning. It makes disparate language information understandable by placing it on cards and grouping the cards together in a creative manner. "Header" cards are used to summarize each group.

Alpha

α

The maximum risk or probability of making a Type I Error. This probability is always greater than zero and is usually established at 5%. The researcher makes the decisions to the greatest level of risk that is acceptable for a rejection of Ho.

Alternate Hypothesis A statement of change or difference. This statement is considered true if Ho is rejected.

Analysis of Variance (ANOVA)

Hypothesis test used to analyze the difference in means between two or more samples.

APQP Advanced Product Quality Planning. A sequenced process utilized to improve the design and implementation of products and processes to meet and exceed customer requirements.

Assignable Cause The name for the source of variation in a process that is not due to chance and therefore can be identified and eliminated.

Autonomation Automation with a human touch (jidoka). The second of two major pillars of the Toyota Production System. (The first pillar is just-in-time production.)

Baseline The current operating performance of a process. Used to characterize the starting point for improvement measurements.

BDP / SDP Best Developed Practice / Successfully Developed Practice: Both refer to internal or external benchmarks, which serve as examples of improved processes for other locations to adopt.

Benchmarking The process of finding and adapting best practices to improve organizational performance.

Best Practice A superior method or innovative practice that contributes to improved performance.

Beta β

The risk or probability of making a Type II Error, or overlooking an effective treatment or solution to the problem.

Bi-modal Distribution A frequency distribution that has multiple modes. The histogram of a bimodal distribution would have two ‘humps.’

402-105 GLOSSARY


WORD / PHRASE DEFINITION Black Belt A process improvement project team leader who is trained and certified

in the principles and practices of Six Sigma methodology and tools, and who is responsible for project execution.

Bottleneck

(Constraint)

A situation that delays work on a product or service at a process step; often resulting in a queue, delay, or excess inventory in front of the bottleneck. (Also called a ‘constraint.’)

Boxplot “A graphic summary of a distribution where the overall dispersion and the central tendency or mean of the data are highlighted” (Arturo Onnias)

Brainstorming An idea-generating technique that uses group interaction to generate many ideas in a short time period. Ideas are solicited in a non-judgmental, unrestricted manner from all members of a group.

Breakthrough, Factory Implementing the Focused Area Improvement Event (FAIE) concepts throughout an entire factory to achieve the benefits of a large-scale transformation of the factory.

Buffer Inventory Finished goods available to meet variations in customer demand due to fluctuations in ordering patterns or takt time. Also known as buffer stock or safety stock.

Business Process A group of related processes which work together to deliver an outcome.

BVA Business Value Added A process that the business requires to stay in business but that is not a requirement for an external customer.

Capability The total range of inherent variation in a stable process. It is determined using data from control charts or as a result of a process capability study.

Capability Index A calculated value used to compare process variation to a specification. Examples are Cp, Cpk. Can also be used to compare processes to each other.

Capacity-Productivity and Capacity-Utilization

C-P, C-U

These are metrics related to how well plants utilize their investments in equipment.

C-P = Current 1st Quality Output / Baseline 1st Quality Output C-U = Current 1st Quality 1st Time / Maximum Theoretical Rate

Cause and Effect Matrix Prioritization matrix used to assist in focusing in on the root causes of process problems.

GLOSSARY 402-105


WORD / PHRASE DEFINITION CDOV

(CDOC)

Concept Development; Design Product and Process; Optimization; Verification the disciplined process for managing Design for Six Sigma projects.

Concept, Design, Optimize, Control: Another version of the Design process.

Central Tendency The tendency of data gathered from a process to cluster toward a middle value, somewhere between the high and low values of measurement.

Champion A business leader who facilitates the leadership, implementation, and deployment of the Six Sigma Operational Excellence process.

Changeover Time The time required for a specific machine, assembly line, or work center to convert from production of one specific item to another. The time is elapsed time from production of the last unit of Item B until production of the first GOOD unit of Item A. Also, changeover is a term for downtime of the production process for this purpose.

Charter A written commitment by management stating the scope of authority for an improvement group. Resources, including time and money, are specifically addressed.

Checksheet A form for recording data on which the number of occurrences of an event can be recorded as ticks or checks.

Common Cause A source of process variation that is inherent to the process and is common to all the data.

Common Cause Variation Variation due to random events that affect a process at all times. (e.g. normal temperature changes) This type of variation is a normal part of the system.

Confidence Interval An interval that can be said, with X% certainty, to contain the true process mean or standard deviation. “We are 95% confident that the true process mean is in this interval.”

Conformance The output meets all of the agreed-upon customer requirements.

Consensus A state where everyone agrees to support a decision even if they don’t totally agree. Anyone who retains strong disagreement can veto the decision.

Continuous Flow The ideal state characterized by the ability to replenish a single part that has been "pulled" downstream. In practice, continuous flow is synonymous with just-in-time (JIT) production, which ensures that both internal and external customers receive only what is needed, just when it is needed, and in the exact quantities needed.

402-105 GLOSSARY


WORD / PHRASE DEFINITION Continuous Improvement A disciplined approach to ensure the ongoing improvement of a

process to achieve higher customer satisfaction and efficiency. It relies on effective use of quality tools and processes. Also known as KAIZEN

Control Chart A graphical display of the performance of a characteristic over time in relation to the natural process limits.

Control Limits "Defines natural boundaries of a process within specified confidence levels" [upper control limit (UCL), and lower control limit (LCL) defined on a control chart]. (J. R. Russell)

Control Plan Process documentation that describes the system for controlling processes and product.

Cost of Conformance The cost of “making sure” customer requirements are met. (e.g. inspection, audits)

Cost of Non-Conformance What it costs not to meet customer or process requirements. It includes both failing to meet requirements (rework) and exceeding requirements (excess inventory).

Cost of Poor Quality (COPQ) The cost of failing to produce and deliver 100% quality to our customers. does not include costs of monitoring quality, such as inspection and auditing costs. Cost associated with poor quality products or services. Examples: Product inspection, Sorting, Scrap, Rework, and Field Complaints.

Cost of Quality A measure of the efficiency of our quality-related activities. It is the sum of the cost of conformance, the cost of non-conformance, and lost opportunity costs.

CP Process Capability compares the customer’s expectation to the process variation.

USL – LSL 6σ

CPK Process Capability with mean compared to nearest specification limit: X-bar – nearest spec limit 3 σ

Critical Process Input Variable

The vital few process input variables that have the greatest effect on the output variable(s) of interest. They are called “X’s”, normally 2 – 6 true critical variables.

Critical To Quality (CTQ)

(Critical Characteristic)

A condition that must be met in order for the process or product to satisfy the most important customer requirements.

GLOSSARY 402-105


WORD / PHRASE DEFINITION Customer The person or persons who receive the product or service that you or

your group produces or performs. Customers can be internal (within the corporation) or external (outside of the corporation).

Customer Requirements What the customer needs, wants, and expects of the output. The customer and supplier typically negotiate and agree upon these requirements.

Customer Value Added (CVA)

A process step that the customer requires and is willing to pay for.

Cycle Time

Throughput (To)

Throughput ( T or Th )

The time required to perform an activity or step in a process. It includes value-added and non-value-added time such as for order preparation, queuing, receiving, inspection, and transport. Throughput time (total process cycle time) is the time is takes materials (or information) to flow through all process steps. For a business process, it is the time it takes from the customer's request to delivery of the product or service.

Throughput is also sometimes used to describe the output rate of a production process, or average output in pieces per unit of time. Compare this to takt time or the rate of customer demand.

Defect Any characteristic that deviates outside of specification limits or customer requirements.

Defect Opportunity One of many possible defects on a single item or part that would render the part defective.

Defective Any unit with one or more defects. See also Defect.

Design FMEA (Failure Mode Effect

Analysis)

An analytical technique used by a design responsible engineer/team as a means to assure, to the extent possible, that potential failure modes and their associated causes/mechanisms have been considered and addressed.

Design for Assembly A tool used to assist the design team in the design of products that will transition to production at a minimum cost, focusing on the number of parts, handling and ease of assembly.

Design for Manufacturability (DFM)

A simultaneous engineering process designed to optimize the relationship between design function, manufacturability, and ease of assembly.

402-105 GLOSSARY


WORD / PHRASE DEFINITION Design of Experiments

(DOE) A method for testing and optimizing a process. DOE uses a planned experiment to control input variables and measure their effect on output variables. It uses an experiment rather than real-world data. Statistically planned experiments may be used for confirmation of the effect of KPIVs from FMEA and/or multi-vari studies.

Design Validation Testing to ensure that product conforms to defined user needs and/or requirements. Design validation follows successful design verification and is normally performed on the final product under defined operating conditions. Multiple validations may be performed if there are different intended uses.

Design verification Testing to ensure that all design outputs meet design input requirements.

DMAIC

DMADV and DMADVI

Define, Measure, Analyze, Improve, Control – the disciplined methodology utilized to manage Six Sigma projects on existing processes which need breakthrough improvement.

Other versions of the improvement process: Define, Measure, Analyze, Design, Validate and DMA + Verify and Implement.

DOTWIMP The Seven Wastes: Defects, Overproduction, Transportation, Waiting, Inventory, Motion, Processing.

Waste #8 is Unused Employee Creativity

DPMO Defects per Million Opportunities

DPU Defects per Unit

Entitlement The optimal performance than can be achieved by a process. How the process would operate if it was centered and did not drift.

Error-Proof Mistake-proofing techniques, designed in a way to prevent an error from resulting in a product defect. For example, in an assembly operation, if each component part is not used, a sensing device detects a part was unused and shuts down the operation, thereby preventing the assembler from moving the incomplete assembly on to the next station or beginning another one. Also known as fail-safe, mistake proofing, or Poka-Yoke.

Evolutionary Operations (EVOP)

Continuous on-line process improvement by operators.

GLOSSARY 402-105


WORD / PHRASE DEFINITION Failure Modes and Effects

Analysis (FMEA) A tool for linking failure modes to cause and effect so that predictions can be made on how things can fail, what the effect of the failure will be, how often the failure will occur, how severe the failure will be and how well the failure can be detected in order to install controls to reduce the occurrence of producing unacceptable product. Also assists with the prioritization of improvement efforts.

Feasibility A determination that a process, design, procedure, or plan can be successfully accomplished in the required time frame.

First Pass Yield (FPY)

The percentage of products or services that are successfully completed on the first attempt without requiring remedial action or rework.

Five Why’s ( 5 “Whys” )

Root cause discovery technique by repeatedly asking “Why?”

Flow The movement of material or information. Manufacturing businesses are successful to the extent that they are able to move material and information with as few disruptions as possible – preferably none.

Flowchart A pictorial representation of the inputs, activities, sequence, decision points, and outputs within a work process.

Focused Area Improvement

Event (FAIE) Implementing the concepts of standard work in selective areas, to improve product flow, reduce inventory, reduce scrap, improve throughput and increase employee involvement by analyzing and then redefining the work that is required to perform the process.

Gage Bias The difference between the observed average of multiple measurements of the identical characteristic on the same part and the true average. Also known as Gage Accuracy.

Gage Repeatability The variation in measurements obtained with one measurement instrument when used several times by one individual while measuring the identical characteristic on the same part.

Gage Reproducibility The variation in the average of the measurements made by different individuals using the same measuring device when measuring the identical characteristic on the same part.

Gap Analysis The comparison of a current condition to the desired state.

Green Belt A member of Six Sigma project team who leads less complex improve-ment initiatives or who provides technical assistance to a Black Belt.

Histogram A graphic way of summarizing data by plotting possible values on one axis and the observed frequencies for those values on the other axis. It helps one visualize the central tendency and of the data.

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WORD / PHRASE DEFINITION House of Quality A product-planning matrix developed during quality function deployment

that shows the relationship of customer requirements to the means of achieving these requirements. The matrix indicates the impact each of the means has on one another.

Hypothesis Testing A way of analyzing data, particularly from DOEs, that tries to determine if results observed are statistically significant, as opposed to being the results of random variation.

I & MR Chart Individuals and Moving Range Chart: A type of variables control chart based on individual measurements.

Input I/O = Input/Output

A product or service coming into your process that you act upon. Inputs can be material or information.

ISO International Standards Organization. ISO 9000, ISO 9001, etc are standards for quality and business processes.

Jidoka The use of automation to mistake-proof the detection of defects and free up workers to perform multiple tasks and to promote flow.

Just-in-time Production JIT

Refer to continuous flow.

Kaizen Small daily improvements performed by everyone. Kai means “take apart” and zen means “make good.” The point of kaizen implementation is the total elimination of waste.

Kanban A method of Just-in-Time production that uses standard containers or lot sizes with a single card attached to each. It is a pull system in which work centers signal that they wish to withdraw parts from feeding operations or suppliers. Kanban, in Japanese, loosely translated means “card,” “billboard,” or “sign.” (Toyota Production System)

Key Measurement A measurement that is determined to be critical to ensure the quality of the process output. Also refer to Critical To Quality.

Key Process Input Variables (KPIV)

The vital few process input variables that have the greatest effect on the output variable(s). They are called “X’s”, (normally there are 2 – 6)

Key Process Output Variables (KPOV)

The output variable(s) of interest. They are called the “Y’s”, (usually 1). May be process performance measures or product characteristics.

Lean Shorthand for Lean manufacturing – a manufacturing paradigm based on the fundamental goal of the Toyota Production System: minimizing waste and maximizing flow. A series of tools and techniques that focus on process optimization through cycle time reduction and the elimination of waste.

GLOSSARY 402-105


WORD / PHRASE DEFINITION Lean Design for Six Sigma

(LDFSS) A set of tools and best practices used within an existing product development process to ensure the most effective product and process solution for meeting customer requirements. The tools and techniques systematically examine and streamline the entire Value Chain prior to released production.

Line Balancing A process in which work elements are evenly distributed within a value stream to meet takt time.

Load Leveling Also known as heijunka. Balancing the amount of work to be done (the load) during a shift with the capacity to complete the work. A heijunka system distributes work in proportions based on demand, factoring in volume and variety.

Location Indicator A visual workplace element that shows where an item belongs. Lines, arrows, labels, and signboards are all examples of location indicators.

Lost Opportunity Something lost due to lack of acceptable quality or performance. For example, profit not earned because of customers’ lost orders due to lack of quality. Customers include both current and potential.

Manufacturing Process The defined way utilized to produce the physical product that must conform to a defined set of requirements.

Master Black Belt A person who is “expert” in Six Sigma techniques and project implementation. Master Black Belts play a key role in mentoring, training and coaching Black Belts.

Mean A measure of central tendency representing the arithmetic average of a set of observations. The sum of data divided by the number of observations or ( Σn / n = X-bar )

Measure A comparison of outputs against customer requirements to make sure they conform, and to find out how well the process is performing. Measurements are also taken while producing the product or service to prevent errors as early in the work process as possible.

Measurement System

(MSA)

The complete process used to obtain measurements. It consists of the collection of operations, procedures, gages and other equipment, software, and personnel used to assign a number or value to the characteristic being measured. MSA = Measurement System Analysis

Median The value of the point (datum) that has an equal number of points above and below it when all the data are arranged in order of magnitude. If two values fall in the middle, the median is the average of the two. It is a measure of central tendency.

MINITAB The primary statistical software package used by the Six Sigma project teams.

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WORD / PHRASE DEFINITION Mode The value most often repeated in the data set. It is a central tendency

measure represented by the highest point in the distribution curve or the histogram of a data set.

Mu and Sigma ( μ and σ)

Greek letters denoting the population average and the population standard deviation. These are measures of central tendency and variability.

Multi-vari Study A graphical and statistical method to depict variation in the KPOV as it relates to changes in multiple KPIVs. Variables include noise variables potentially causing variability in the process. The study of process inputs and outputs is completed in a passive mode (natural day-to-day process).

Nominal Group Technique (NGT)

A version of brainstorming where individuals first write down their ideas, then the facilitator asks for and posts input by going around the room getting one item per person until all ideas are posted. Only clarification questions are allowed, but no discussion until all ideas are posted.

Non-Conformance The output does not meet all of the agreed-upon customer requirements.

Non-Value Added A step in a process that takes time or resources, but does not contribute to achieving customer requirements or improved process efficiency.

Normal Distribution A continuous, symmetrical, bell-shaped frequency distribution for variable data.

Null Hypothesis A statement of no change or difference. This statement is assumed true until sufficient evidence is presented to reject it. “If p is low, HO has to go”.

Operator (or Production) Balance Chart

A visual display of the work elements, times, and operators at each location in a value stream. The operator balance chart is used to show improvement opportunities by visually displaying work operation times in relation to total cycle time and takt time.

Out of Control Describes a process that has variations that fluctuate outside the computed control limits. This condition normally indicates the process is not operating as desired or that external factors have been introduced. A process "out of control" is not stable and therefore is not predictable.

Output The product or service delivered by a process. It is sent to the customer of that process, and it becomes the input for the next process.

p-value Test statistic used in Hypothesis testing. “If p is low, Ho has to go”.

GLOSSARY 402-105


WORD / PHRASE DEFINITION Paced Withdrawal A method of leveling that involves moving small batches of material

through the value stream over time intervals equal to the “pitch.”

Pack-out Quantity A small batch equal to the number of units or parts that can be moved throughout the value stream to ensure an efficient flow. Pack-out quantity may or may not be customer driven.

Parallel Placement or Processing

Two different steps in the same process, taking place at the same time. Also known as “concurrent processing.”

Pareto Chart A statistical method of measurement to identify the most important problems through different measurement scales; e.g., frequency, cost, etc. It directs attention and efforts to the most significant problems.

Paynter Chart A modified Pareto Chart. The bars of the chart representing the items, defect, etc. of interest are broken down further based on additional criteria, such as day, shift, line, etc. The Paynter Chart is another way of displaying the information provided by a Second Level Pareto Chart.

PDCA

PDSA

Plan, Do, Check, Act. The method or sequence of actions used to identify and plan important accomplishments and changes that are desirable. Also known as the Deming Wheel or the Shewhart Cycle. PDSA is another version: Plan, Do, Study, Act

Pitch The amount of time (based on takt) required for an upstream operation to release a predetermined pack-out quantity of WIP to a downstream operation. Pitch is therefore the product of the takt time and the pack-out quantity.

POKA-YOKE Refer to error-proof.

Precision to Tolerance Ratio P/T ratio

The ratio of what percent measurement error takes up as a percent of the tolerance of specification limits.

Population

The universe of all possible numbers that can be considered the same in some sense.

Prevention A quality assurance strategy that attempts to identify and correct unacceptable service or product characteristics during the design, development or production phases.

Probability The chance of an event happening or a condition occurring in a random trial.

Procedure Sheet A detailed description of process steps, usually the next level of detail documentation after flowcharting or mapping a process.

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WORD / PHRASE DEFINITION Process The defined way by which all work gets completed. Consists of an

activity or group of activities that takes an input, adds value and provides an output. There are two types of processes: manufacturing and transactional.

Process Boundary The natural or defined limits of a process. Boundaries are defined with concise descriptions of the process’s suppliers, inputs, outputs, customers and customers’ requirements.

Process Control The practice of monitoring the performance of a process to determine when the performance drifts beyond a certain threshold so that actions can be taken to re-establish the process within the established boundaries.

Process in Control A process is in control when variation of the process output is due to random (common) causes only. At this point it is considered to be stable, but it will have random or normal variation. (Contrast with “process capability” which is related to whether the process falls within specification limits or customer requirements.)

Process Map A step-by-step pictorial sequence of a process showing process inputs, process outputs, cycle time, rework operations, and inspection points.

Process Output Variable The outputs of interest, sometimes referred to as the customer requirements. They are called the “Y’s”, (usually 1). May be process performance measures or product characteristics.

Process Owner Coordinates the functions and work activities at all levels of the process. Has the authority to make changes in the process as required and manages the process end-to-end to ensure optimal output production.

Process Spread The extent to which the distribution of individual values of the process characteristic (input or output variable) vary; often shown as the process average plus and minus some number of standard deviations. Other related measures of spread include the range, and variance.

Process Time The time during which the material is being changed, whether it is a machining operation or a manual operation. Process time per piece is: (setup time/lot size) + run time per piece.

Product Family A group of parts that share common equipment and similar routing.

Project Charter A summary of why the Six Sigma project is being completed, the identification of the project boundaries and the measures of success. This is essentially the “blueprint” of how the project will proceed.

GLOSSARY 402-105


WORD / PHRASE DEFINITION Quality Quality means conformance to customer requirements, internal and

external.

Quality Function Deployment (QFD)

A model that transfers customer requirements into product and process characteristics and to manufacturing procedures so that our products satisfy our customers.

Queue Time Non-value added waiting time before the product or service enters the next activity in the process.

Range A measure of dispersion, representing the difference between the highest and the lowest values in the data set.

Repeatability and Reproducibility

Repeatability: The variation in measurements obtained with one measurement instrument when used several times by one appraiser while measuring the identical characteristic on the same part. Reproducibility: The variation in the average of the measurements made by different appraisers using the same measuring instrument when measuring the identical characteristic on the same part.

Response Surface Methods Method for using DOE to optimize process parameter settings. Allows for fine process adjustment for ultimate optimization.

Risk Priority Number Metric used in FMEA to quantify risk. Calculated by multiplying the Severity of the Effect, the probability of Occurrence of the Failure and the ability to Detect the Failure. RPN = S x O x D

Robust Immune to outside influences. A measurement that can truly assess how the process is performing.

Rolled Throughput Yield (RTY)

The probability of being able to pass a unit or product or service through the entire process defect free. The multiplication of all individual first pass yields of each step of the entire process (1st quality, 1st time through). Calculations for each step of the process should be based on theoretical yields and should view all waste as defects. Should be calculated on a product-by-product basis.

Runner A worker who ensures that pitch is maintained. The runner covers a designated route within the pitch period, picking up kanban cards, tooling, and components, and delivering them to their appropriate places.

Safety inventory Finished goods or work-in-process inventory available to meet customer demand when internal constraints or inefficiencies disrupt process flow. Also known as safety stock.

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WORD / PHRASE DEFINITION Sample The particular collection from a population from which data is gathered,

rather than using the entire population. Data from random samples have the same characteristics as the population with a statistically determined “level of confidence.”

Safety, Purpose, Agenda, Code of Conduct,

Expectations and Rolls

Meeting effectiveness technique. Every meeting should begin with review of safety procedures, meeting purpose, agenda, meeting code of conduct, meeting expectations and meeting roles.

SBTI Sigma Breakthrough Technologies, Inc. Tyco consulting partner for Six Sigma Deployment

Serial Placement (Processing)

Only one process step taking place at one time on a product or service.

Short Term Capability Determines variation in the process, assesses ability to meet specifications and permits short, intermediate, and long term goal setting.

SIPOC Map – Suppliers Inputs Process

Outputs Customers

Single page process map that shows the scope of the process your project is examining.

Six Sigma The process mean is 6 process standard deviations from nearest specification limit. ( CPK = 2.0 )

SMED Acronym for single minute exchange of dies. (See Changeover time)

Special Cause Variation Variation that is due to an identifiable, out-of-the-ordinary event. It is not a usual part of the process.

Specification The engineering requirement or customer requirement for judging acceptability of a particular characteristic for a product or process.

Standard Deviation (σ)

Sample Standard Deviation (s)

A measure of dispersion, representing how close or how far single values are from the mean.

Standard Operating Procedures (SOP)

Documented and controlled description of the approved standard method for a process.

Standard Work An agreed-upon set of work procedures that establishes the best method and sequence for each manufacturing or assembly process. Standardized work is implemented to maximize human and machine efficiency while simultaneously ensuring safe conditions.

Statistical Control

The condition describing a process from which all special or assignable causes of variation have been eliminated and only common or random causes remain. Applies to both the mean (location) and standard deviation (spread).

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WORD / PHRASE DEFINITION Statistical Process Control

(SPC) Method of using control charting to manage a process.

Storyboard Technique to graphically display the methodology used and progress made by a process action team; a board, specifically designated to display information.

Sub-process Internal, subordinate processes that make up a larger process.

Supermarket A system used to store a set level of finished-goods inventory or WIP and replenish what is "pulled" to fulfill customer orders (internal and external); ideally to the point that it is possible to achieve one-piece flow based on takt time.

Supplier The person or group responsible for providing inputs to a process or customer.

System An interdependent group of tasks working together to produce an output. An organized or established procedure.

Takt Time The "beat" of customer demand – the time required between completion of successive units of end product. Takt time determines how fast a process needs to run to meet customer demand. Takt time is calculated by dividing the total time available for production by the total customer requirement.

Theory of Constraints A management philosophy that focuses the organizations scarce resources on improving the performance of the true constraint, and therefore the bottom line of the organization.

Total Cycle Time

Throughput (To)

(See also Cycle Time)

The total of the cycle times for each individual operation or cell in a value stream. Total product cycle time includes both value-added and non-value-added times. Lean techniques reduce the non-value-added times.

Total Employee Involvement (TEI)

An improvement strategy in which employees are invited to participate in actions and decision-making that were traditionally reserved for management.

Total Productive Maintenance (TPM)

Preventive maintenance plus continuing efforts to adapt, modify, and refine equipment to increase flexibility, reduce material handling, and promote continuous flow. It is operator-oriented maintenance with the involvement of qualified employees in all maintenance activities. The goal of TPM is zero unplanned down-time.

Transactional Process All non-manufacturing processes, for example: shipping, logistics, design, accounts payable, information technology.

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WORD / PHRASE DEFINITION Upper Control Limit, Lower Control Limit:

(UCL, LCL)

Limits determined by the process beyond which we rarely expect to see data if the process is operated on target and in control. Usually these are set at ±3σ about the process target. For normally distributed data these limits include 99.7% of the observations.

Upper Specification Limit, Lower Specification Limit

(USL, LSL)

Limits set by the downstream customer, internal or external, beyond which we should not operate the process.

Utilization Utilization of any workstation, capital, process or line is usually defined as percent of time running divided by available time to run.

Value Stream (Value Chain)

A collection of all the steps (both value-added and non-value added) involved in bringing a product or group of products from raw material to finished products accepted by a customer. Value Stream Management’s goal is to minimize the waste that prevents a smooth, continuous flow of product throughout the value stream.

Value Stream Mapping A macro-chart of the material and information flow of a specific product family. It also includes key metrics such as lead time, cycle time, takt time, utilization, WIP inventory, and action plans. Also know as value stream process mapping.

Value-Added

Value-Added Management

For an action or step to be value-adding, it must meet all three of these criteria: 1. Contributes to usefulness in the eyes of the customer, 2. Physically changes the product or service, 3. Done right the first time.

The objective of “Value-Added Management” is to eliminate all non-value-added activities in producing and providing a good or service. (It is synonymous with Lean Manufacturing/Management)

Value-Added Time The time or percent of total process time which adds value. Processes are typically less than 5%.

Variables Control Chart A process control chart for a characteristic or parameter that has continuous values rather than discrete values such as counts.

Variation The difference between individual measurements. Differences are attributed to common and/or special causes.

Variation: Common Cause The variability introduced to a process that may not be controllable by the operator and may require outside assistance to reduce in size.

Variation: Special Cause The variability introduced to a process that should be controllable by the operator of the process.

Voice of the Business Business requirements

GLOSSARY 402-105


WORD / PHRASE DEFINITION Voice of the Customer Data collected from the customer that tells you what the customer

wants.

Voice of the Process Data and facts that tell you what the process is doing.

Waste Anything within a value stream that adds cost or time without adding value. The seven most common wastes are 1) Over-production, 2) Waiting, 3) Transport, 4) Processing, 5) Inventory, 6) Motion, and 7) Defects and spoilage. Also know as muda.

Work Cells U-shaped and other designs providing a process flow that allows the best combination of balanced product flow, worker productivity and ergonomics, minimal WIP inventory, and output.

Work in Process The inventory between the start and end points of a production process or series of processes necessary to produce a finished good.

Work Process A set of interrelated activities that are characterized by a set of specific inputs and value added tasks that produce a specific output.

X Process Inputs or Input Variables

Y Process Output, the thing delivered to the customer, or its measure such as the percent defects.

References: Value Stream Management by Tapping, Luyster, and Shuker. Productivity Press, New York, 2002. LBE Reference Guide by AMP, Incorporated. Harrisburg, Pa, 1997

Quality and Statistic Tools

Documents

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systematic problem

systematic process

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corrective actionsolution

sigma operational excellence