1 Six Sigma Overview Six Sigma Overview Objectives To know what “Six Sigma” means To be able to explain the meaning of Six Sigma as a measure of a product’s ability to meet customer requirements To be able to explain the meaning of Six Sigma as a change initiative in a business
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1
Six Sigma OverviewSix Sigma Overview
Objectives
To know what “Six Sigma” means
To be able to explain the meaning of Six Sigma as a measure of a product’s ability to meet customer requirements
To be able to explain the meaning of Six Sigma as a change initiative in a business
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Comprehend Business Objectives/Priorities.Comprehend Business Objectives/Priorities. Objectives for this sessionObjectives for this session
To gain a high-level understanding of Six Sigma and the EMC approach to Six Sigma
To walk out with an understanding of what is required to write a good project definition to assist your candidates to have a clearly defined project before attending Week 1 training.
To ensure a common understanding of basic tools and concepts used in Six Sigma training
To clarify what is expected from you as champions and management to foster this cultural change in using these tools in our day to day business.
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Does Your Company Need Six Sigma?Does Your Company Need Six Sigma?
Does Your Company
Believe zero-defect goals are neither realistic nor achievable?
Have 10 times the number of suppliers required to run the business?
Have 5 to 10% of its clients dissatisfied with the product, the sales organization, or the service you’ve provided?
Have customers who will not recommend that others purchase your goods or services?
Quantify profitability and growth?
Deliver new products to the market?
(continued)
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Does Your Company Need Six Sigma? Does Your Company Need Six Sigma? --cont.cont.
Does Your Company -
Continually implement price reductions for current products?
Have an increasing number of competitors?
Spend a high % of sales dollars on repairing or reworking a product before it ships?
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Does Your Company Need Six Sigma? Does Your Company Need Six Sigma? --contcont..
Does Your Company -
Have a magician in your organization?
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Six Sigma ObjectivesSix Sigma Objectives
The Vision:The Vision: Drive industries to design and produce products/services to Six Sigma standards
The Goal:The Goal: Produce goods and services at a Six Sigma level. As your organization moves toward Six Sigma quality, you will:
Eliminate defects
Reduce production and development costs
Reduce cycle times and inventory levels
Increase profit margin
Improve customer satisfaction
The Strategy:The Strategy: Use a data-driven structured approach to attack defects to improve the sigma level of your goods and services
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What Is Six Sigma?What Is Six Sigma?
Our Grade: _____________
Please grade your organization based on the following:
F Our organization uses only tribal knowledge. We do not use data.
E Our organization collects data simply to say, “We collect data.”
D Our organization collects data and we sometimes look at the numbers.
C Our organization logically groups the data. We form charts.
B Our organization uses sample data along with basic statistics.
A Our organization uses sample data along with inferential statistics.
A+ Our organization quantifies processes via prediction equations.
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What Is Six Sigma?What Is Six Sigma?
Organizational Issue Traditional Approach Six Sigma Approach
Problem resolution Fixing (symptoms) Preventing (causes)
Behavior Reactive Proactive
Decision making Experience-based Data-based
Process adjustment Tweaking Controlling
Supplier selection Cost (piece price) Capability
Planning Short-term Long-term
Design Performance Producibility
Employee training If time permits Mandated
Chain-of-command Hierarchy Empowered teams
Direction Seat-of-pants Benchmarking and metrics
Manpower Cost Asset
A Vision of a Six Sigma Company
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What Is Six Sigma?What Is Six Sigma?
Sigma level: The business metric used to indicate the performance of a process to some specification
The number of standard deviations that fit between the mean and the nearest specification limit
OR
A measure of the number of defects per opportunity produced by a process
LSLLSL USLUSL
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Today’s Standard3 Capability
93.319 %
Long-Term Yield
Automotive Standard4 Capability
99.379 %
Six Sigma Standard6 Capability
99.99966 %
What Is Six Sigma?What Is Six Sigma?
Is 99% yield good enough?
Five lost e-mail messages per month
No cable television for 3.5 hours each month
15,000 overnight carrier packages lost per week
25 incorrect car rental reservations per company per day
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Short-term distribution shifted by 1.5to obtain long-term PPM
Note: Industry standard has defined a sigma level to imply short term.
Sigma level compared to defectsSigma level compared to defects
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4 toothpick manufacturer (assume one opportunity for a defect): Has an RTY of 0.99379 (1) = 99.379%4 mechanical pencil manufacturer (assume 10 opportunities for a defect): Has an RTY of 0.99379 (10) = 93.961%
Benchmarking StandardsBenchmarking Standards
(Distribution Shifted ± 1.5)
Process Capability (Sigma Level)Process Capability (Sigma Level)
Failing to meet customer expectations the first time
A missed opportunity for increased efficiency
The potential for higher profits
Loss in market share
Increase in cycle time
Labor associated with ordering replacement material
Costs associated with disposing of defects
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Traditional Metrics
$60,000
$70,000
$80,000
$90,000
$100,000
$110,000
$120,000
$130,000
0.825 0.85 0.875 0.9 0.925 0.95 0.975 1
CO
PQ
Equipment Util. vs. COPQ
Equipment Utilization
$60,000
$70,000
$80,000
$90,000
$100,000
$110,000
$120,000
$130,000
80.0% 82.5% 85.0% 87.5% 90.0% 92.5%
CO
PQ
Test Yield vs. COPQ
Test Yield
Six Sigma OverviewSix Sigma Overview
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Six Sigma Metrics
$-
$75,000
$150,000
$225,000
$300,000
$375,000
$450,000
0.00 30.00 60.00 90.00 120.00
CO
PQ
Cycle Time vs. COPQ
Cycle Time (Minutes)
$-
$75,000
$150,000
$225,000
$300,000
$375,000
$450,000
1.00 1.75 2.50 3.25 4.00 4.75 5.50
CO
PQ
Sigma Level vs. COPQ
Sigma Level
Six Sigma OverviewSix Sigma Overview
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Six Sigma OverviewSix Sigma Overview
For an average company,the COPQ can be as high as
25%25%
of total sales!
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Six Sigma OverviewSix Sigma Overview
What Is Cost of Poor Quality (COPQ)?
The cost of finding and fixing defects
Failing to meet customer expectations the first time
A missed opportunity for increased efficiency
The potential for higher profits
Loss in market share
Increase in cycle time
Labor associated with ordering replacement material
Costs associated with disposing of defects
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Low Yield Rate High Customer Failure Rate
(PPM) Incoming Product Quality
Problems Unpredictable Quality Poor Process Capability (Cp, Cpk) Measured System Error High Past Due to Customer High Maintenance Costs Low Machine Utilization
Six Sigma OverviewSix Sigma Overview
Process Downtime High Operating Costs High Scrap/Rework Costs High Inventories (WIP) Long Cycle Times Unpredictable Product
Problems Unpredictable Quality Poor Process Capability (Cp, Cpk) Measured System Error High Past Due to Customer High Maintenance Costs Low Machine Utilization
Six Sigma OverviewSix Sigma Overview
Process Downtime High Operating Costs High Scrap/Rework Costs High Inventories (WIP) Long Cycle Times Unpredictable Product
Steering committee Defines Six Sigma Initiative objectives
Business analysis based on strategic objectives Analysis/revision of existing business performance metrics Establishes targets for deployment throughout the organization
Identifies and defines initial Six Sigma application projects Assigns Champions Assigns Black Belts/Green Belts
Reviews Six Sigma projects Reviews and revises strategic objectives and business
performance metrics
Champion Training Aligns Strategic Decisions With Six Sigma Methodology.
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EMC Implementation Strategy EMC Implementation Strategy Champion Roles and ResponsibilitiesChampion Roles and Responsibilities
Roles: Is responsible for coordination of the business roadmap to achieve 6 Selects projects, controls execution, and alleviates roadblocks for the 6
projects in his area of responsibilityReporting Lines: Is part of the functional organization and reports directly to the 6 leader Is a member of the organization’s 6 leadership teamResponsibilities: Selects projects, controls execution, and implements and realizes gains
(bottom line linkage) Owns the “execution” portion of Black Belt/Green Belt certification Obtains the needed project resources and eliminates roadblocks Drives the cross-functional coordination of projects Participates in all project reviews Owns the Black Belt/Green Belt selection Is the boss of the Black Belt/Green Belt (direct or dotted line) Provides reward and recognitionTime Commitment: Two days/week per 10 projects managed (20% to 80% based on
organization)
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EMC Implementation Strategy EMC Implementation Strategy Master Black Belt Roles and ResponsibilitiesMaster Black Belt Roles and Responsibilities
Roles: Is a mentor, trainer, and coach of Black Belts and others in the
organization Brings broad organization up to the required 6 competency level.Reporting Lines: Is generally a central resource; is cross functional. Is a member of the 6 leadership team and the steering committeeResponsibilities: Mentors and coaches Black Belts Develops and conducts several forms of training Owns the 6 technical development roadmap
Provides higher education of Black belts and Master Black Belts Brings the entire organization to the 6 level of competency
Is the custodian of the purity of the method no compromising Transfers lessons learned Owns “knowledge” certification of Black Belts Finds outside expertise/help when required Networks with other 6 organizationsTime Commitment: Must be 100% dedicated
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EMC Implementation Strategy EMC Implementation Strategy Team Member Roles and ResponsibilitiesTeam Member Roles and Responsibilities
Roles: Participates on the project teams and supports the goals of the project,
typically in the context of his existing responsibilitiesResponsibilities: Performs his normal job and supports the activity of the project as it relates
to that particular job Learns the 6 methodology as it applies to the particular project Continues to learn and practice the 6 methodology and tools after project
completion. Some may evolve to the Black Belt level of knowledge and practice.
Time Commitment: Is defined by the Six Sigma Belt, Champion, and Functional Manager May be instructed to support any Six Sigma project as a high priority Minimum Training Requirement: Four-hour overview Additional training from a Six Sigma Belt
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EMC Implementation Strategy EMC Implementation Strategy Stakeholder Roles and ResponsibilitiesStakeholder Roles and Responsibilities
Roles: Agrees with the project selection and expected results Supports the Black Belt/Green Belt in the organization and takes the
necessary actions to realize the gainsResponsibilities: Approves the potential savings from the project (pre R0) Participates in the project identification and selection process Owns the development and implementation of actions to realize the
savings Provides team resources Ensures that 6 training is implemented in the organization Participates in 6 reviewsTime Commitment: As neededMin. Training Requirement: Four-hour overview
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EMC Six Sigma ApproachEMC Six Sigma Approach
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Implementation Strategy
Strategic Infrastructure
Tactical Infrastructure
Operational Infrastructure
ApplicationStrategy
Measure Analyze Improve Control
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What Tool(s) Do You Need for Your Project?
Tools:Design for manufacturabilityDesign for Six Sigma, 6 tolerancing, product scorecard
Complete the measure phase of a second project (Black Belts only)
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EMC Application StrategyEMC Application Strategy Define project scope Validate measurement systems Establish initial capability for Ys Process exploration of all potential Xs
Measure
Characterize the response and analyze the raw data Bimodal? Skewed? Is the problem with m or s2?
Use graphical analysis, multi-vari, hypothesis testing, and basic statistical tools to identify the likely families of variability
Analyze
Identify the likely Xs Use the design of experiments to find
the critical few Xs Move the distribution (shift m) Shrink the spread (decrease s2) Confirm the results
Improve
Mistake-proof the process Tolerance the process Measure the final capability Place appropriate process controls on the critical Xs Document the effort and results
Control
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EMC Application StrategyEMC Application Strategy
Project Reviews Each phase has a list of potential project application tools.
Use these tools to move your project forward. If the tool is not appropriate, please make sure you clearly
understand and can demonstrate its usage. We are here to help you with both the application and the
underlying concept.
Local and Corporate Project Reviews Present only the tools that are pertinent or of interest to the audience
during your reports. Your presentation should take no longer than 15 minutes.
Please allow 10 minutes for the presentation itself and five minutes for a brief question/answer session.
Your presentation should consist of approximately 8 to 10 slides.
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Misc:Tolerance:Reported by:Date of study:Gage name:
Countable failures associated with a single unit. A single unit can be found to be defective, but it may have more than one defect.
Defectives:
Completed units that are classified as bad. The whole unit is said to be defective regardless of the number of defects it has.
First time yield =
non-defectives / total units.
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Defects per Unit (DPU)Defects per Unit (DPU)
Unit: The entity that is transformed by value-added activities. Typically, it is defined as the “product” that is sold to the customer.
DPU can be applied at both the individual process-step level and the product level.
ProducedUnits
DefectsDPU
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Example of DPUExample of DPU
At the part level: Pedal assemblies arrive at our plant weekly to support
production needs. The following defect data is collected on a sample basis. It was collected over the previous 12- month period for 500 total samples (n = 500). Reflector missing 25 Threads marred 15 Pedal bent 10 Total 50
The average number of defects per unit (pedal) is:
1.0500
50
Units
DefectsTotalDPU
(continued)
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Example of DPUExample of DPU--cont.cont.
At the product level: DPUs of sub-assemblies can be summed to obtain the total
number of defects found in the finished unit.
Here are defect rates for four sub-assemblies that make up the final product: A 0.10 DPU B 0.15 DPU C 0.05 DPU D 0.10 DPU
RTY: Measuring the probability of obtaining a defect-free unit, instead of first time yield.
Two calculations:
The second method is derived from a Poisson distribution model. It is a valid approximation for defect rates of 10% or lower. It shows there is a relationship between DPU and RTY.
DPU
nprocessbprocessaprocess
eRTY
DPUfromconvertingor
YieldYieldYieldRTY
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Rolled Throughput Yield ExampleRolled Throughput Yield Example
The pedal sub-assembly process is outlined below. We have identified the DPU associated with each process step.
Select R and L part #s from bin
locationDPU = 0.02
Hand- tighten L
pedal
DPU = 0.01
Hand- tighten R
pedal
DPU = 0.01
Torque L pedal to 5 ft
lbs
DPU = 0.03
Torque R pedal to 5 ft
lbs
DPU = 0.03
Process Step DPU Step YieldSelect Part 0.02 98%Hand Tighten L 0.01 99%Hand Tighten R 0.01 99%Torque L 0.03 97%Torque R 0.03 97%Total 0.10 %90
97.097.099.099.098.0
%901.0
RTY
or
eeRTY dpu ***
*** Good for DPU < 0.1 , otherwise use product of step yields
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Process Capability
Operation:DPU = 1
OutgoingQuality
Scrap Defects
Verify:9/10 Good
RTY: Yield prior to inspection and test
Re-WorkDefects
RTY = 37%based on defects
FTY: Yield after inspection and test
FTY = 90%based on non-defectives
Bad
Good
Understanding First Time Yield and RTYUnderstanding First Time Yield and RTY
Rolled Throughput Yield (RTY) is a measure that is based on defects that occur throughout the process.
Probability of a defect free unit (RTY) as a function of DPU’s.
DPU1.5.1.01
Probability %37609099
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Defects per Million Opportunities Defects per Million Opportunities (DPMO)(DPMO)
It is sometimes helpful to compare products, parts, and processes of differing complexities. We would expect products/processes of higher complexity to have a lower RTY (and “sigma value”).
The higher n (the complexity) is, the lower the RTY.
DPMO is for Benchmarking and project selection and DPU for Six Sigma Project Metric.
n
iiprocess
total
DPUDPU
nprocessbprocessaprocess
eeRTY
YieldYieldYieldRTY
1)(
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The CalculationThe Calculation
To compare products/processes of differing complexity, we must start with a measure of complexity. We call this measure an “opportunity.”
Opportunities can be defined as the number of parts in the product, or the number of process steps needed to assemble a product. Both would be indicators of overall product/process complexity.
Other definitions of “opportunity” can be applied as long as the “measure” of complexity is used uniformly.
Which product is performing better, the pencil or the blender?
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Task: You have 60 seconds to document the number of times the 6th letter of the alphabet appears in the following text.
Measurement Systems Analysis (MSA)Measurement Systems Analysis (MSA)Attribute Gage Repeatability and ReproducibilityAttribute Gage Repeatability and Reproducibility
(Attribute Gage R&R)(Attribute Gage R&R)
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Inspection ExerciseInspection Exercise
The necessity of training farmhands for first-class The necessity of training farmhands for first-class
farms in the fatherly handling of farm livestock is farms in the fatherly handling of farm livestock is
foremost in the eyes of farm owners. Since the foremost in the eyes of farm owners. Since the
forefathers of the farm owners trained the farmhands forefathers of the farm owners trained the farmhands
for first-class farms in the fatherly handling of farm for first-class farms in the fatherly handling of farm
livestock, the farm owners feel they should carry on livestock, the farm owners feel they should carry on
with the family tradition of training farmhands of first with the family tradition of training farmhands of first
class farmers in the fatherly handling of farm class farmers in the fatherly handling of farm
livestock because they believe it is the basis of good livestock because they believe it is the basis of good
fundamental farm management.fundamental farm management.
The necessity of training farmhands for first-class The necessity of training farmhands for first-class
farms in the fatherly handling of farm livestock is farms in the fatherly handling of farm livestock is
foremost in the eyes of farm owners. Since the foremost in the eyes of farm owners. Since the
forefathers of the farm owners trained the farmhands forefathers of the farm owners trained the farmhands
for first-class farms in the fatherly handling of farm for first-class farms in the fatherly handling of farm
livestock, the farm owners feel they should carry on livestock, the farm owners feel they should carry on
with the family tradition of training farmhands of first with the family tradition of training farmhands of first
class farmers in the fatherly handling of farm class farmers in the fatherly handling of farm
livestock because they believe it is the basis of good livestock because they believe it is the basis of good
fundamental farm management.fundamental farm management.
Task: You have 60 seconds to document the number of times the 6th letter of the alphabet appears in the following text.
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Attribute R&RAttribute R&R
An attribute R&R is used to:
Determine if operators across all shifts, all machines, etc., use the same criteria to determine “good” from “bad”
Assess your inspection or workmanship standards against your customer’s requirements
Identify how well these operators are conforming to themselves
Identify how well these operators are conforming to a “known master,” which includes:
How often operators decide to ship truly defective product
How often operators do not ship truly acceptable product
Discover areas where:
Training is needed
Procedures are lacking
Standards are not defined
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Increasing Yield through InspectionIncreasing Yield through Inspection
Number of consecutive inspectors required to achieve an escaping defect rate of 3.4 ppm (6, short term)
InspectDPUin DPUescaping
DPUremovedin
removed
DPU
DPUEfficiency
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(continued)
How to Run an Attribute R&RHow to Run an Attribute R&R
Step 1: Select about 30 parts from the process.
50% of the parts in your study should have defects.
50% of the parts should be defect free.
If possible, select borderline (or marginal) good and bad samples.
Step 2: Identify the operators who should be qualified.
Step 3: Have each operator independently and in random order assess these parts and determine whether or not they pass or fail (judgment of good or bad).
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How to Run an Attribute R&RHow to Run an Attribute R&R--cont.cont.
Step 4: Repeat Step 3 for a second trial.
Step 5: Use the AttrR&R2.xls spreadsheet to report the effectiveness and efficiency of the attribute measurement system (operators and the inspection process).
Step 6: Document and implement appropriate actions to improve the inspection process (if necessary).
Step 7: Re-run the study to verify the improvement.
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ExampleExample
Attribute Gage R&R Effectiveness
SCORING REPORTDATE: Today's Date
Attribute Legend5 (used in computations) NAME: Green Belt
% of time trial 1 agrees with trial 2 for each operator
% of time each operator agrees with the standard
Statistical Report
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SummarySummary
An attribute Gage R&R must be performed to ensure the integrity of attribute data.
Operators must inspect both known “good”, “borderline” and “bad” parts:
Attribute measurement systems can be improved by establishing standards and by operator training.
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Measurement Systems Analysis (MSA)
Variable Gage
Repeatability and Reproducibility(Variable Gage R&R)
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Why Study Measurement Systems?Why Study Measurement Systems?
Before you spend time and effort on a Green Belt project, we must validate the integrity of the data we are going to use in the decision-making process.
The study of measurement systems will provide information as to the % of variation in your process data that comes from error in the measurement.
It is also a great tool for comparing two or more measurement devices or two or more operators against one another.
Measurement Systems Analysis should be used as part of the criteria required to accept and release a new piece of measurement equipment to manufacturing.
It should be the basis for evaluating a measurement system that is suspect of being deficient.
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Possible Sources of VariationPossible Sources of Variation
Calibration program and
Gage selection
Observed process or product variation
Due tooperators
Measurement variation
Linearity
Stability
Accuracy
Due to measurement device (Gage)
Repeatability
Long-termvariation
Short-termvariation
Actual process or product variation
Reproducibility
Variable R&R study
2 total = 2 product + 2 measurement
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Repeatability of the instrument is a measure of the variation obtained when one one operatoroperator uses the same devicesame device to “repeatedly” measure the identical characteristic on the same partsame part. When no operator is present, repeatability accounts for repeat measurements taken on an automated piece of test equipment.
A variable R&R study will quantify the repeatability of the measurement system.
Reproducibility is the variation in the averages of measurements made by different operatorsdifferent operators using the same devicesame device when measuring identical characteristics of the same parts. Reproducibility may also be used to quantify differences caused by different measuring devicesdifferent measuring devices (substitute measuring device for operator)
Reproducibility DefinedReproducibility Defined
Reproducibility
Operator ADevice A
Operator BDevice B
Performance Characteristic
A variable R&R study will quantify the reproducibility of the measurement system.
Quantifies differences between the operators (devices)
Step 1:Step 1: Collect 10 samples that represent the full range of long-term process variation. In addition, identify the operators who perform measurements on these parts daily.
Step 2:Step 2: Calibrate the Gage or verify that the last calibration date is valid.
Step 3:Step 3: Set up the Minitab data-collection sheet for the R&R study.
Step 4:Step 4: Ask the first operator to measure all the samples once in random order. Blind sampling, in which the operator does not know the identity of each part, should be used to reduce human bias.
Step 5:Step 5: Have the second and then the third operators measure all the samples once in random order. All operators have now measured the samples once (this is Trial 1).
(continued)
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The MethodologyThe Methodology--cont.cont.
Step 6:Step 6: Repeat Steps 4 and 5 for the required number of trials.
Step 7:Step 7: Enter the data into Minitab.
Step 8:Step 8: Use Minitab to analyze the data by assessing the quality of the measurement system. Determine follow-up actions.
Step 8:Step 8: Analyze the Minitab output.
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Variable Gage R&R ExampleVariable Gage R&R Example
Situation: In our bicycle factory, the quality department measures the length of the tube stock used to form the handlebars on a sample basis. They use a steel rule with an end stop to make this measurement. The rule measures to the nearest 0.01".There are three operators who cut tube stock and record this data.
Task: Determine the adequacy of the measurement system.
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Step 1: Collect 10 samples that represent the full range of long-term process variation. In addition, identify the operators who use this instrument daily.
To determine the full range, let’s look at the capability analysis for these parts.
ExampleExample
44.444.344.244.144.043.943.8
USLLSL
Process Capability Analysis for Bikebar Length
USL 44.25LSL 43.75Mean 44.10StDev 0.10
The parts have a mean of 44.1" and a standard deviation of 0.10”, so we would expect 95% of the parts produced to be between 43.9" and 44.3" (± 2). We should use parts in this range for the study.
Mary, Pat, and Joe are the operators who measure this parameter and so should be selected as part of the measurement study.
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Example, Gage R&R Using MinitabExample, Gage R&R Using Minitab
Step 2: Calibrate the Gage or verify that the last calibration date is valid.
In this case, we could measure some standard lengths to ensure that the steel rule is not biased.
Step 3: Set up the Minitab data-collection sheet for the R&R study. Create the R&R data-collection sheet for 10 parts, each measured two times by three operators.
Column Headings: Column 1: PartID (1 to 10)Column 2: Operator (1 to 3)Column 3: Operator NameColumn 4: Trial (1 to 2)Column 5: Measure
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Example, Gage R&R Using MinitabExample, Gage R&R Using Minitab
Step 4: Ask the first operator to measure all the samples once in random order. The operator should not know the identity of each part, to reduce human bias.
Mary measures all of the parts in random order.
Step 5: Have the second and then the third operator measure all the samples once in random order. All operators have now measured the samples once (this is Trial 1).
Pat and then Joe measure all of the parts in random order.
Step 6: Repeat Steps 4 and 5 for the required number of trials.Mary then Pat and then Joe measure the parts a second time in random order.
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Minitab WorksheetMinitab Worksheet
Step 7: Enter the data into Minitab.
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Run the AnalysisRun the Analysis
Step 8: Use Minitab to analyze the data. Stat>Quality Tools>Gage R&R Study>Options
Enter PartID, Operator, and
Measure.
5.15 standard deviations represent 99% of the normal curve.
0.5 comes from ±0.25 the process tolerance
5.15 standard deviations represent 99% of the normal curve.
0.5 comes from ±0.25 the process tolerance
Enter 5.15 and 0.5.
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Gage nam e:Date of s tudy :Reported by :
Toleranc e:M is c :
043.9
44.0
44.1
44.2Joe M ar y Pat
Xbar Chart by Name
Sam
ple
Me
an
M ean=44.11UCL=44.14
LCL=44.09
0
0.00
0.01
0.02
0.03
0.04Joe M ar y Pat
R Chart by Name
Sa
mp
le R
ang
e
R=0.01280
UCL=0.04182
LCL=0
1 2 3 4 5 6 7 8 9 10
44.0
44.1
44.2
Part ID
Nam eName*Part ID Interaction
Avera
ge
J oe M ary Pat
J oe M ary Pat
43.95
44.05
44.15
44.25
Nam e
By Name
1 2 3 4 5 6 7 8 9 10
43.95
44.05
44.15
44.25
Part ID
By Part ID
%Contribution %Study Var %Toleranc e
Gage R&R Repeat Reprod Part-to-Part
0
50
100
Components of Variation
Perc
ent
Gage R&R (ANOVA) for Measure
Step 9: Analyze the Minitab output.
Graphs! But what do they mean? Let’s investigate each section one at a time.
If a dominant source of variation is repeatability (equipment), you need to replace, repair, or otherwise adjust the equipment.
If, in consultation with the equipment vendor or upon searches of industry literature you find that the Gage technology you are using is “state of the art” and it is performing to its specifications, you should still fix the Gage.
If a dominant source of variation is operator (reproducibility), you must address this via training and definition of the standard operating procedure. You should look for differences among operators to give you some indication as to whether it is a training, skill, and/or procedure problem.
Evaluate the specifications. Are they reasonable?
If the Gage capability is marginal (as high as 30% of study variation) and the process is operating at a high capability (Ppk greater than 2), then the Gage is probably not hindering you and you can continue to use it.
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SummarySummary
Before you spend time and effort in a Green Belt project, we must validate the integrity of the data we are going to use in the decision-making process.
Measurement error is included with the process variation in any observed “Y.”
When conducting a Gage study, we need parts that are representative of the entire range produced by the process.
We will use Minitab output, both graphical and numeric, to assess the capability of the Gage.
To understand the importance of project selection to Six Sigma success
To understand the difference between traditional project selection and Six Sigma project selection
To be able to establish a business case
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Importance of Project SelectionImportance of Project Selection
Dissemination of the Six Sigma culture depends on news of successful projects having significant business impact.
Poor project selection is the most common root cause of delays in completion of Six Sigma projects.
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Six Sigma vs. Traditional ProjectsSix Sigma vs. Traditional Projects
Traditional Project Selection Selected to optimize performance of one part of the business Implementation of a pre-determined solution Managing the exceptions vs. the norms Lack clarity for project expectations Examples:
Create a new Reporting System
Reduce the number of non-expensable expenses Paid
Increase total revenue Install new equipment,
hardware/software
Increase the number of sales Reduce OT in one department Reduce the cost of one operation Improve on-time delivery Reduce the cycle time in one
sub-process
(continued)
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Six Sigma vs. Traditional Projects Six Sigma vs. Traditional Projects -cont-cont..
Traditionally, Projects Show Little or No Business Impact Optimize part of the business at the expense of another
Decreasing cycle time in a non-bottleneck process Reducing the cost in one area by increasing the cost of
another
Do not address the root causes of existing problems Automating a bad process nets producing defects quicker
Create more incremental costs than savings Increasing the number of products/features sold but not
generating additional revenue from sales Reducing the total paid out in expenses by implementing an
audit process that costs more than the overage in expenses paid (continued)
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Six Sigma vs. Traditional Projects Six Sigma vs. Traditional Projects -cont.-cont.
Has too large a scope
Too many insignificant things are distracting the attention of the team
Not enough attention is being focused on things with the most impact
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Six Sigma vs. Traditional ProjectsSix Sigma vs. Traditional Projects
Six Sigma Project Selection Establishing a business case for a project
Avoids selecting projects with little or no business impact
Narrowing the project focus based on a business case Avoids scope problems Identifies the most significant areas to impact the
business case Defining a project
Quantifies the problem and objectives, and outlines the metrics used to determine project success
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Six Sigma vs. Traditional ProjectsSix Sigma vs. Traditional Projects
Six Sigma Project Selection
Establishing a business case for a project Avoids selecting projects with little or no
business impact Narrowing the project focus based on a business case
Avoids scope problems Identifies the most significant areas to impact the business
case Defining a project
Quantifies the problem and objectives, and outlines the metrics used to determine project success
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(continued)
Establishing a Business CaseEstablishing a Business Case
Business Case The business case establishes the importance of the
project to the business in terms of meeting business objectives
Components The output unit (product/service) for external customer The primary business measure of the output unit for the
project The baseline performance of the primary business
measure A gap in the baseline performance of the primary
business measure from the business objective
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Establishing a Business CaseEstablishing a Business Case -cont. -cont.
A business case establishes the need for a project in terms of business objectives
Six Sigma business objectives
Reduce the cost/unit of a product
Decrease defects of a product
Increase product yield
Decrease the total cycle time of a product
(continued)
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Project Selection II Project Selection II Narrowing Project FocusNarrowing Project Focus
Objectives
To know how to identify a narrow project focus that will provide the largest impact to the problem outlined in the business case
To be able to evaluate several potential projects objectively using the project desirability matrix
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(continued)
Narrowing Project FocusNarrowing Project Focus
Comments on Narrowing a Project’s Focus
When selecting an initial training project, it is important that we look for high-leverage projects where the return justifies the investment in time and effort, and where the need for improvement is substantial.
Please keep in mind that decisions based on factual data are always better than those based upon intuition, hearsay, or folklore.
Step 1: High-level process map analysis of the COPQ included in the cost to produce Identify the re-work and scrap throughout the process. Attach the cost to business for each re-work and scrap point in the
process. VALIDATE THESE COSTS WITH THE COMPTROLLER.
Step 1: A high-level process map determines where defects occur throughout the process The volume of re-worked units within sub process, rejected at start of next process
The volume of scrapped units within sub process, rejected at start of next process
In addition to the impact to the stated problem in the business case, there may be: Business constraints on capital investment in the
project Business constraints on resource investment in the
project
For certification only, one additional factor must be considered when selecting a project: The project must serve as a learning opportunity.
IT MUST BE FEASIBLE TO COMPLETE THIS PROJECT WITHIN FOUR MONTHS.
The project should offer the opportunity to use as many tools as possible.
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Project Selection III Project DefinitionProject Selection III Project DefinitionProblem StatementProblem Statement
What is a problem statement?
A problem statement describes in specific, concrete terms what the data have revealed. It describes the present undesirable situation with clarity and objectivity while avoiding “hidden” solutions.
You should analyze and discuss all data collected through narrowing the project focus.
A problem statement should be concise and answer these questions:
Who is impacted by this problem?
What is the impact of this problem?
When has the problem occurred?
How do you know the problem occurs?
How many times does the problem occur?
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Project statement:Project statement:
Fill In the Blanks For Your Project:Fill In the Blanks For Your Project:
During ________________________ , the ____________________ for (Period of time for Baseline Performance)(Period of time for Baseline Performance) (Primary Business Measure)(Primary Business Measure)
_____________ was _____________ . This gap of ________________ (Output Unit)(Output Unit) (Baseline Performance) (Bus Obj Target vs. Baseline) (Baseline Performance) (Bus Obj Target vs. Baseline)
from ___________ represents ____________ of cost savings. This (Business Objective)(Business Objective) (Cost Impact of Gap) (Cost Impact of Gap)
project will _______________________________________________. (Project’s Expected Impact on Performance of Primary Business Measure)(Project’s Expected Impact on Performance of Primary Business Measure)
by _______________________. (Project’s Expected Completion date)(Project’s Expected Completion date)
Fill In the Blanks For Your Project:Fill In the Blanks For Your Project:
During ________________________ , the ____________________ for (Period of time for Baseline Performance)(Period of time for Baseline Performance) (Primary Business Measure)(Primary Business Measure)
_____________ was _____________ . This gap of ________________ (Output Unit)(Output Unit) (Baseline Performance) (Bus Obj Target vs. Baseline) (Baseline Performance) (Bus Obj Target vs. Baseline)
from ___________ represents ____________ of cost savings. This (Business Objective)(Business Objective) (Cost Impact of Gap) (Cost Impact of Gap)
project will _______________________________________________. (Project’s Expected Impact on Performance of Primary Business Measure)(Project’s Expected Impact on Performance of Primary Business Measure)
by _______________________. (Project’s Expected Completion date)(Project’s Expected Completion date)
Objectives are set to give the team, as well as others, a measure of the effectiveness of performance,
To see whether improvement efforts are successful in addressing the problem and, therefore, having an impact on the problem stated in the business case.
Careful project selection is critical to the success of the Six Sigma Quality Initiative.
The more desirable projects you have, the higher the business impact, less effort is required, and you’ll have a higher probability of success than others.
Good problem statements and objectives clearly communicate the scope, significance, and goals of a project.
Primary and secondary metrics will be used to measure the success of a project.
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6 S ig m a P r o je c t S c o p e
C a n d id a te N a m e _ _ _ _ _ C h r is R e y n o ld s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ C h a m p io n N a m e : _ _ _ _L a v o n B a x te r _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
D iv is io n : _ _ _ _ W h it e - R o d g e r s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ L o c a t io n : _H a r r is o n , A r k a n s a s_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __P r o b le m S ta t e m e n t : _ _ I n f is c a l y e a r 1 9 9 9 , 2 5 M g a s v a lv e r e j e c t r a t e f o r n o is e w a s 1 2 5 ,5 0 0 P P M . T h is P P M le v e l e q u a t e s to $ 1 0 5 ,0 0 0 in id e n t if i e d n o n -v a lu e a d d e d c o s t . T h is is th e h ig h e s t n o n- v a l u e a d d e d c o s t a c t iv it y a n d r e q u ir e s o v e r 6 ,0 0 0 h o u r s o f r e w o rk la b o r E a c h y e a r . I n a d d it io n , t h e s c r a p g e n e r a te d f r o m th is r e je c t l e v e l is o v e r $ 1 5 ,0 0 0 .
B a s e l in e T im e F r a m e : _ _ _ _ F Y 9 9 _ _ _ _ _ _ _ _ _ _ _ _ _ _ ( T h e t im e p e r io d fo r d a ta c o lle c t io n )
P r o je c t P r im a r y M e tr ic : (e x a m p le - C y c le T im e , P P M , P ro d u c t iv it y ) _ _ _ P P M ’s a t N o is e T e s t ._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
P r o je c t B a s e lin e : _ _ 1 2 5 ,0 0 0 P P M ’s _ _ _ _ _ _ _ _ _ P ro je c t G o a l: _ _ _ _ 5 0 ,0 0 0 P P M ’s _ _ _ _ _ _ _ _ _ _ _ _ G a p : _ 7 5 ,0 0 0 P P M ’s_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
P r o je c t S e c o n d a r y M e tr ic : ( e x a m p le - C y c le T im e , P P M , P ro d u c t iv ity ) _ _ _ _ R e w o r k L a b o r_ _ _ _ _ _ _ _ _ _ _ _ _P r o je c t T h ir d M e tr ic :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
T h is p r o je c t b e g in s w ith th e T u b e A s s e m b ly p ro c e s s o p e ra t io n a n d e n d s w ith th e _ _ _ _ _N o is e T e s t_ _ _ _ _ _ p r o c e s s o p e ra t io n .
T h is p r o je c t w i ll b e fo c u s e d in th e _ _ _ H a r r is b u r g _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ F a c ili t y , _ _ _ _ a t t h e 2 5 M lin e_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _(P ro d u c t N a m e , L in e o r P r o c e s s e s e tc .)
P r o je c t O b je c t iv e : _ T h e o b je c t iv e o f t h is p r o j e c t is to r e d u c e t h e 2 5 M G a s V a lv e n o is e t e s t P P M b y 6 0 % b y J u l 0 0 . T h is r e d u c t io n w o u ld y ie ld a c o s t s a v in g s o f $ 6 3 ,0 0 0 . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
(P ro je c t e x p e c te d im p a c t o n p e r f o r m a n c e o f p r o je c t p r im a r y b u s in e s s m e tr ic , d o lla r s & c o m p let io n d a te )
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Candidate SelectionCandidate Selection
Black Belt / Green Belt Selection Criteria
Desire to Drive Change Someone who is not afraid to take data that might not tell people what they want to hear
Effective Communication SkillsSomeone who can communicate across functional and hierarchical boundaries
Demonstrated Leadership AbilitiesSomeone who can motivate others to participate in the work ahead
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EMC Implementation Strategy EMC Implementation Strategy Six Sigma Belt Roles and Six Sigma Belt Roles and
ResponsibilitiesResponsibilitiesRoles: Leads the teams as they implement the 6 methodology on projects Introduces the methodology and tools to Team Members and the broader
organizationReporting Lines: Can report directly to the Champion or to the function Must feel a part of the functional organizationResponsibilities: Applies the methodology completely to the project Acts as both a technical and cultural change agent for quality Spreads the methodology to the project teams Supports the efforts of the function by spreading the use of the
methodology when called on to assist on other business issues Has dual membership: in the functional and 6 teams Must have technical competencies required to effectively execute the
Six Sigma toolsTime Commitment: Must be substantially dedicated (25% – 100%)Min. Training Requirement: Attend Six Sigma training class Complete all project-related requirements
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MentoringMentoring
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MentoringMentoringCandidate: Mr or Ms Candidate Champion: Mr or Ms Champion Location: Anywhere USA
Project Title: To significantly improve my process Training Phase: MeasureDate of this report: 01/01/2001 Support Person: Mr or Ms SSQI Support
Problem Statement:Enter your problem
Objective / Goal Statement:Enter your goal
A 0 rating indicates No action has been takenProject Deliverables - update each visit Weighting Score (0-4) Weighted score 2 3 4
Problem Statement 3 4 12
Complete - does not have all elements
Complete
Objective / Goal Statement 3 4 12Vague - No dollars or
no goal.Perfectly clear -
Goals set
COPQ Definition 3 4 12 Estimate Signed Off
Metric Chart
Contains 3 elements; Baseline, Goal &
Actualup to date
Primary ~ Defects - DPU, PPM, RTY, etc. 3 4 12 Secondary ~ Potential negatives - COPQ, etc. 3 4 12Project Time Line (Projplan.XLS) 3 4 12 not up to date up to dateTeam Meetings 3 4 12 < 1 per week >= 1 per weekProject Notebook 3 4 12 not up to date up to dateProject Complexity Information Only Very Very Complex Complex Slam Dunk% Time dedicated to Six Sigma since last review Information Only 34% to 66% <33% 34% to 66% >66%
Candidate Self Assessment Information Only Good
Poor. Having difficult time understanding
how tools are selected and applied
to the project
Fair. Somewhat understand the tools and their
application, getting by with help from SSQ.
Good. Leader, aggressive, easily gets
tasks accomplished
Project Status Summary reviewed with: Champion 3 4 12 Not per Project Plan Per Project Key Stakeholders 3 4 12
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MentoringMentoringMeasure Phase Deliverables
Weighted score A 0 rating indicates No action has been taken
Weighting Score (0-4) 1 2 3 4Process Map 3 3 9 Started First Pass Being Revised CompletedMulti Level Pareto Charts 3 3 9 Data being collected One Level Two Level Three LevelFishbone/5-Why 1 3 3 Planned In process Completed Analyzed
XY Matrix (XYMatrix.XLS) 2 3 6 Data being collected In Process CompletedDecision(s)
made
FMEA (pfmea_cp.XLS) 3 3 9 Started Completed RPN's RankedAction plan developed
Gage R&R 3 3 9 Scheduled / Planned In Process Completed Analyzed
Process Capability 3 3 9 Scheduled / Planned In ProcessData collection
Demonstrated appropriate tool use in completing the Improve Phase
Tool use not appropriate
Appropriate tool use
Exceptional Application
Second Project (Analyze Phase) 3 0 0 Started <=50% Complete <=75% Complete CompletedControl Plan 4 0 0 Scheduled / Planned In Process Completed RevisedLean Fundamentals 2 0 0 5 S's Mistake Proofing Both In Control Plan
One Page Summary Report 3 0 0Draft Draft
1st pass submitted
Completed
Final Report 4 0 0
Measure Phase Total Score #
Tool Knowledge Appropriateness of Tool Use
green N/A
See Guidelines tab for rating explanation.
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Change ManagementChange Management
Objectives
To know how a team leader can set up a team for success in the change effort
To know the elements of making the team’s change efforts successful in the organization
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MEASURE ANALYZE IMPROVE CONTROL
Six Sigma Six Sigma BELTSBELTS
Team Support, Team Support, PLANT STAFF PLANT STAFF
Elements of Successful ChangeElements of Successful Change Identifying the Change Leader Identifying the Change Leader
Successful change initiatives require strong committed leadership throughout the entire project lifecycle. The leadership offers: Visible, active, and public commitment and support A willingness to take personal initiative and to
challenge the status quo A high-level of attention to the project
Giving time to the team Talking about the project to others Establishing priorities for the project against other
demands in the organization
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Elements of Successful ChangeElements of Successful Change Building Mutual Need Building Mutual Need
Creating a shared need involves framing the need to appeal to the interest of all those to be impacted by the change:
A shared recognition by the team and the stakeholders for the need and logic for the change
Appealing to the unhappiness with the current situation
The ability to take perceived threats of the change and turn them into opportunities for the future
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Elements of Successful ChangeElements of Successful ChangeForming a VisionForming a Vision
Building a vision provides an organization with the direction and motivation to make the change:
A view of what the future will look like with this change
Appeals to logic and intuition while explaining why the change is needed
Can help to establish milestones to mark the progress of the change
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Elements of Successful ChangeElements of Successful ChangeMobilizing CommitmentMobilizing Commitment
Mobilizing commitment positions the team for support when it is faced with obstacles.
Create an alliance of committed supporters.
Identify the potential sources of resistance.
Convert all key influencers.
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Elements of Successful ChangeElements of Successful ChangeSustaining ChangeSustaining Change
Change initiatives must be composed of commitments rather than “assignments:”
Having consistent, visible, and tangible reinforcement of the changed behavior is needed.
Integrating change into on-going work behaviors is needed.
Aligning systems and structures helps make the change a part of individual and team behavior.
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Elements of Successful ChangeElements of Successful ChangeMonitoring ChangeMonitoring Change
Good measurement systems need to be established early in the project.
What are the metrics that will be used to determine the team’s success in making a sustained change?
Tracking these metrics and sharing them across all those impacted by the team
Winning support of doubters through results
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Elements of Successful ChangeElements of Successful ChangeAligning Systems and StructuresAligning Systems and Structures
Assessing the existing system of measures and rewards will highlight existing practices that are inconsistent or unproductive.
Identifying critical system and structure areas that must be addressed
Assessing the risk of slipping back into “old habits”
Aligning systems and structures with desired behaviors
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Elements of Successful ChangeElements of Successful Change Aligning Systems and Structures Aligning Systems and Structures
System and Structures Integration Template -cont.
Evaluate rewards and recognition
1. List the behavioral changes.
2. Evaluate the organization’s likely reaction to displaying behaviors that are desired to move to and behaviors desired to move from:
A= Reward or approval
B= Punishment or disapproval
C= No reaction
D= Impossible to predict (continued)
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Elements of Successful ChangeElements of Successful Change Aligning Systems and Structures Aligning Systems and Structures
System and Structures Integration Template -cont.
3. List the existing rewards available to employees.
4. Evaluate the existing rewards using the measurement checklist.
5. Develop an action plan to reward the desired behaviors not included in performance metrics or included in the likely to receive reward or approval.
6. Develop an action plan to eliminate rewarding behaviors that are not desired.