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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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Page 1: Six Sigma

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

Page 2: Six Sigma

2

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.

Page 3: Six Sigma

3

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)

Page 4: Six Sigma

4

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?

Page 5: Six Sigma

5

Does Your Company Need Six Sigma? Does Your Company Need Six Sigma? --contcont..

Does Your Company -

Have a magician in your organization?

Page 6: Six Sigma

6

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

Page 7: Six Sigma

7

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.

Page 8: Six Sigma

8

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

Page 9: Six Sigma

9

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

Page 10: Six Sigma

10

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

Page 11: Six Sigma

11

Short-term distribution shifted by 1.5to obtain long-term PPM

0

100000

200000

300000

400000

500000

600000

700000

800000

Sigma Level

De

fec

ts p

er

Mil

lio

n O

pp

ort

un

itie

s

Short-Term PPM Long-Term PPM

Short-Term PPM 158655.3 22750.1 1350.0 31.7 0.3 0.0

Long-Term PPM 691462.5 308537.5 66807.2 6209.7 232.7 3.4

1 2 3 4 5 6

Sigma Level

Short-Term PPM

Long-Term PPM

1 158655.3 691462.52 22750.1 308537.53 1350.0 66807.24 31.7 6209.75 0.3 232.76 0.0 3.4

Note: Industry standard has defined a sigma level to imply short term.

Sigma level compared to defectsSigma level compared to defects

Page 12: Six Sigma

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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)

Pro

du

ct C

om

ple

xity

Pro

du

ct C

om

ple

xity

(# o

f O

pp

ort

un

itie

s)

(# o

f O

pp

ort

un

itie

s)

Ro

lled

Th

rou

gh

pu

t R

oll

ed T

hro

ug

hp

ut

Yie

ld (

RT

Y)

Yie

ld (

RT

Y)

±3 Sigma ±4 Sigma ±5 Sigma ±6 Sigma

1 93.319% 99.379% 99.977% 100.000%10 50.086% 93.961% 99.768% 99.997%80 0.396% 60.755% 98.156% 99.973%

100 0.099% 53.638% 97.700% 99.966%150 0.003% 39.284% 96.570% 99.949%300 0.000% 15.432% 93.257% 99.898%1,200 0.000% 0.057% 75.636% 99.593%3,000 0.000% 0.000% 49.753% 98.985%

150,000 0.000% 0.000% 0.000% 60.042%

Page 13: Six Sigma

13

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

Page 14: Six Sigma

14

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

Page 15: Six Sigma

15

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

Page 16: Six Sigma

16

Six Sigma OverviewSix Sigma Overview

For an average company,the COPQ can be as high as

25%25%

of total sales!

Page 17: Six Sigma

17

Page 18: Six Sigma

18

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

Page 19: Six Sigma

19

Page 20: Six Sigma

20

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

Performance Capacity Constrained High Product Volume Internal Perceived Poor Quality External Perceived Poor Quality

Indicators of COPQ

Page 21: Six Sigma

21

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

Performance Capacity Constrained High Product Volume Internal Perceived Poor Quality External Perceived Poor

Quality

Indicators of COPQ

Page 22: Six Sigma

22

EMC Six Sigma ApproachEMC Six Sigma Approach

Objectives

To know the EMC approach to deploying Six Sigma

To know the components and importance of the implementation strategy

To know the components and importance of the application strategy

Page 23: Six Sigma

23

EMC Six Sigma ApproachEMC Six Sigma Approach

66

Implementation Strategy

Strategic Infrastructure Tactical

Infrastructure Operational

Infrastructure

ApplicationStrategy

Measure Analyze Improve Control

Page 24: Six Sigma

24

EMC Implementation StrategyEMC Implementation Strategy

Traditional “Quality” program implementation

Need for quality improvement is recognized.

Top management “buys in” to quality improvement.

Implementation responsibility is turned over to the Quality VP or leader.

The CEO makes a statement of support and expectations.

All employees are trained in basic quality tools.

Improvement is expected.

Page 25: Six Sigma

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EMC Implementation StrategyEMC Implementation Strategy

TACTICAL LEVEL

OPERATIONAL LEVEL

Six Sigma Institutionalization Green Belts Yellow Belts

Six Sigma Project Teams Champions Black Belts Team Members Stakeholders

Complements The Established Infrastructure; Complements The Established Infrastructure; It Does Not Replace It!It Does Not Replace It!

STRATEGIC LEVEL

Operational Work Operators Support Staff

Tactical Management Operational Managers Support Managers

Organizational Leadership Executives

Six Sigma Deployment Plan Executive Steering Committee Master Black Belts

Page 26: Six Sigma

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EMC Implementation StrategyEMC Implementation StrategyStrategic LevelStrategic Level

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.

Page 27: Six Sigma

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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)

Page 28: Six Sigma

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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

Page 29: Six Sigma

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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

Page 30: Six Sigma

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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

Page 31: Six Sigma

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EMC Six Sigma ApproachEMC Six Sigma Approach

66

Implementation Strategy

Strategic Infrastructure

Tactical Infrastructure

Operational Infrastructure

ApplicationStrategy

Measure Analyze Improve Control

Page 32: Six Sigma

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What Tool(s) Do You Need for Your Project?

Tools:Design for manufacturabilityDesign for Six Sigma, 6 tolerancing, product scorecard

Tools:Process characterization (mapping, MSA, etc…)Process optimization (DOE, etc…)

Tools:Seven basic tools (paretos, fishbones, check sheets, histogram, flowcharts, brainstorming, control charts)

Tools: Common senseTribal knowledge

EMC Application Strategy EMC Application Strategy

1 to 2

3

4

5

6

Page 33: Six Sigma

33

EMC Application StrategyEMC Application Strategy

Black Belt/Green Belt Certification

Attend all weeks of classroom training

Complete a Six Sigma project successfully

Demonstrate knowledge and apply tools

Achieve the project objectives

Shows financially measurable impact

Complete the measure phase of a second project (Black Belts only)

Page 34: Six Sigma

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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

Page 35: Six Sigma

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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.

Page 36: Six Sigma

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

0

1.11.00.90.80.70.60.50.40.3

321

Xbar Chart by Operator

Sa

mp

le M

ea

n

X=0.80753.0SL=0.8796

-3.0SL=0.7354

0

0.15

0.10

0.05

0.00

321

R Chart by Operator

Sa

mp

le R

an

ge

R=0.03833

3.0SL=0.1252

-3.0SL=0.000

10 9 8 7 6 5 4 3 2 1

1.11.00.90.80.70.60.50.4

Part ID

OperatorOperator*Part Interaction

Av

era

ge 1

23

321

1.11.00.90.80.70.60.50.4

Oper ID

By Operator

10 9 8 7 6 5 4 3 2 1

1.11.00.90.80.70.60.50.4

Part ID

By Part

%Total Var%Study Var

Part-to-PartReprodRepeatGage R&R

1009080706050403020100

Components of Variation

Pe

rce

nt

Gage R&R (ANOVA) for Measure

1413121110987

Upper SpecLower Spec

s

Mean-3s

Mean+3s

Mean

n

k

LSL

USL

Targ

Cpm

Cpk

CPL

CPU

Cp

Short-Term Capability

20000

37442

140000

151108

2.00

3.74

14.00

15.11

Obs

PPM<LSL Exp

Obs

PPM>USL Exp

Obs

%<LSL Exp

Obs

%>USL Exp

1.0665

6.7001

13.0992

9.8997

100.000

0.266

8.000

11.000

*

*

0.34

0.59

0.34

0.47

Process Capability Analysis for C1

EMC Application Strategy EMC Application Strategy Phase 1: Product MeasurementPhase 1: Product Measurement

X1, … , XN Y1, … , YNOperation Verify

YTP

Part

Page 37: Six Sigma

37

Session 1, Application ToolsSession 1, Application Tools

Project Selection *Problem statement and project status *Project assessment chart (Metric.doc)

Process Exploration Process flow diagram XY matrix, PFMEA, fishbones Data collection system

Measurement System(s) Analysis (MSA) Attribute/Variable gauge studies

Capability Assessment (on each Y) Capability (Cpk, level, DPU, RTY) Graphical tools (histograms, )

Progress Summary *Conclusion(s) *Issues and barriers *Next steps

Completed “Local Project Review”

* Note: Required reports

Regardless of the tools used, you should address each of these questions during your Session 1 Review:

1) What is your practical problem statement what are you trying to fix or avoid?

2) What is the business impact?

3) Who is the customer (internal/external)?

4) What are the Ys?

• How did you determine them?

• How are you measuring them?

• How good is the measurement system?

• Have you done a Gage R&R?

5) Does this project have applications in other areas? (tree of opportunity)

6) Is this a technology or control problem?

7) Did you develop a process flow chart?

8) Do you have adequate resources to complete the project?

Regardless of the tools used, you should address each of these questions during your Session 1 Review:

1) What is your practical problem statement what are you trying to fix or avoid?

2) What is the business impact?

3) Who is the customer (internal/external)?

4) What are the Ys?

• How did you determine them?

• How are you measuring them?

• How good is the measurement system?

• Have you done a Gage R&R?

5) Does this project have applications in other areas? (tree of opportunity)

6) Is this a technology or control problem?

7) Did you develop a process flow chart?

8) Do you have adequate resources to complete the project?

Page 38: Six Sigma

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21

0.06

0.05

0.04

0.03

0.02

0.01

0.00

Piece

Impu

rity

9080706050403020100

S=40.96

UCL=85.58

LCL=0.000

20151050

600

550

500

450

400

Xbar and S Chart

Subgroup

X=498.7

UCL=557.2

LCL=440.2

650350

630.741369.259

Potential (ST) CapabilityProcess Tolerance

Specifications

III

III

650350

690.572306.793

Actual (LT) CapabilityProcess Tolerance

Specifications

III

III

Mean

StDev

Z.USL

Z.LSL

Z.Bench

Z.Shift

P.USL

P.LSL

P.Total

Yield

PPM

Cp

Cpk

Pp

Ppk

LTST

Capability Indices

Data Source:Time Span:Data Trace:

0.77

0.78

18747

98.1253

0.0187

0.0099

0.0089

1.181

2.080

2.330

2.372

63.802

498.683

1.14

1.15

555

99.9445

0.0006

0.0003

0.0003

1.181

3.261

3.453

3.453

43.444

500.000

Report 2: Process Capability for C5

X1

All Poss

ible

Xs

Probab

le X

s

Box Plot Analysis

Capability Analysis

X2

X3

X4

X5

X6

X1 X5

EMC Application Strategy EMC Application Strategy Phase 2: Product Performance AnalysisPhase 2: Product Performance Analysis

Page 39: Six Sigma

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Session 2, Application ToolsSession 2, Application Tools

Project Status *Problem statement and project status

*Project assessment chart (Metric.doc)

Process Capability Analysis Distribution assessment

Data transformations

Capability analysis

Graphical Analysis (X Search) Boxplots/scatterplots/other graphs

Identification of high-priority Xs Capability (Cpk, s level, DPU, RTY)

Graphical tools (histograms, m, s)

Progress Summary *Conclusion(s)

*Issues and barriers

*Next steps

Completed “Local Project Review”

*Note: Required reports

Regardless of the tools used, you should address

each of these questions during your Session 2

Review:

1) What is the statement of the statistical problem?

2) Is the response discrete or continuous?• What does the distribution look like?

• Has this helped you reduce the potential Xs?

3) How much of the problem, as described in the measure phase, are you going after?

4) Have you reduced the likely Xs to a number that can be experimented with?

5) What are your next steps?

6) Do you have adequate resources to complete the project?

Regardless of the tools used, you should address

each of these questions during your Session 2

Review:

1) What is the statement of the statistical problem?

2) Is the response discrete or continuous?• What does the distribution look like?

• Has this helped you reduce the potential Xs?

3) How much of the problem, as described in the measure phase, are you going after?

4) Have you reduced the likely Xs to a number that can be experimented with?

5) What are your next steps?

6) Do you have adequate resources to complete the project?

Page 40: Six Sigma

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Design of Experiments

6

2

2218

14Factor G

4160

180

200

220

240

RE

SP

ON

SE

140

Fact

or

E

-1 1-1 1

1 1-1-1

235

225

215

205

195

185

175

165

155

145

B

A

Mea

n Centerpoint

EMC Application Strategy EMC Application Strategy Phase 3: Performance ImprovementPhase 3: Performance Improvement

Interation Plot for Response

RunNo.

Factor AFeed Rate

Factor BDirection

Factor CLocation

Response 1 Location

1

2

3

4

5

6

7

8

.015IPR

RAPID

.015IPR

RAPID

.015IPR

RAPID

.015IPR

RAPID

RIGHT

RIGHT

LEFT

LEFT

RIGHT

RIGHT

LEFT

LEFT

HEADSTOCK

HEADSTOCK

HEADSTOCK

HEADSTOCK

TAILSTOCK

TAILSTOCK

TAILSTOCK

TAILSTOCK

BA

1-1 1-1

230

215

200

185

170

Res

pons

e

Main Effects for Response

Centerpoint

Page 41: Six Sigma

41

Regardless of the tools used, you should address each of these questions during your Session 3 Review:

1) Were all the potential Xs measurable and controllable for an experiment?

2) Are the vital few Xs statisticallysignificant?

3) Are the effects of practical significance?

4) How much of the problem have youexplained with these Xs?

5) How much unexplained error exists?6) Are any new improvements

transferable across the business?7) Is an action plan for spreading the

best practice in place and appropriate?

8) Do you have adequate resources to complete the project?

9) What are the next steps?

See ProjPlan.xls

Session 3, Application ToolsSession 3, Application Tools

Project Selection Problem statement & project status Project assessment chart (Metric.doc)

Remaining Session 1 and 2 DeliverablesDesign of Experiments

DOE planning sheet DOE factorial experiments Y = F (X1, X2, X3, …)

Updated PFMEA Progress Summary

*Conclusion(s) *Issues and barriers *Next steps

Completed “Local Project Review”

* Note: Required reports

Page 42: Six Sigma

42

1-1

10

9

8

7

6

5

6s SpecRange of Y

Realistic Tolerance on X

EMC Application Strategy EMC Application Strategy Phase 4: Process ControlPhase 4: Process Control

Eliminate Xs

Automate Xs

Control Xs

E W M A C h a r t fo r L e n g th

X = 6 0 0 .1

U C L = 6 0 1.2

L C L = 5 9 8 .9

10 05 00

6 0 1.5

6 0 0 .5

5 9 9 .5

5 9 8 .5

X = 6 0 0 .1

U C L = 6 0 1.2

L C L = 5 9 8 .9

EWMA Chart for LengthE

WM

A

Sample Number

Standards

Cause System

StatisticsHigh Spec Low Spec

MHz

Cause Effect

N

μ)(X 2N

1i iσ

Page 43: Six Sigma

43

EMC Application StrategyEMC Application Strategy

Final project update: Before BB/GB can be certified, they are required to submit in compressed electronic format:

A final report

A copy of all presentations

All application tools used throughout the project

Supporting data files used throughout the project

Complete a local management review at their facility before the corporate review.

Page 44: Six Sigma

44

Basic ConceptsBasic Concepts

Objectives

To understand the fundamental equation that drives Six Sigma

To know how the difference between First Time Yield (FTY) and Rolled Throughput Yield (RTY) in measuring process performance

To know the DPU Concept and how is related to RTY.

Page 45: Six Sigma

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Fundamental EquationFundamental Equation

The Fundamental Equation That Drives Six Sigma

Y = f(x)Y = f(x)

The Output Is A Function Of The Inputs And The Process.

Page 46: Six Sigma

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What is Y?Output

Dependent

Effect

Symptom

Monitor

What are X1 . . . XN? Input process

variables Independent Cause Problem Control

Fundamental EquationFundamental Equation

The Fundamental Equation

Y= f(x)Y= f(x)

Page 47: Six Sigma

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Process characterization and optimization

Design for manufacturability

Design for Six Sigma

Process characterization and optimization

Logic and intuition

Seven basic tools (paretos, fishbones, maps, etc.)

Design Process Capability

Sources of Variability

Incoming Partsand Materials

Fundamental EquationFundamental Equation

Output Variation Y = f(x)

Process characterization and optimization

Logic and intuition

Seven basic tools (paretos, fishbones, maps, etc.)

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Six Sigma MetricsSix Sigma Metrics

Parts per million,

ppm

Yield

Process capabilityCp,Cpk,Pp,Ppk

Z-score or “sigma value”

Defects per million

opportunities, DPMO

Rolled throughput

yield,RTY

Defects per unit,DPU

Individual Product

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49

First Time (End of Line) Yield by WeekFirst Time (End of Line) Yield by Week

90

92

94

96

98

100

Wk

1

Wk

2

Wk

3

Wk

4

Wk

5

Wk

6

Wk

7

Wk

8

Wk

9

Wk

10

Wk

11

Wk

12

Wk

13

Wk

14

Wk

15

We

ek

ly Y

ield

(%

)

Where: FTY = First Time

Yield (test yield) P = Number of

units that pass the test

U = Number of units tested

UFTY = P

* 100%

Understanding YieldUnderstanding Yield

First Time Yield (FTY) is a common output metric (Y metric) used to identify and target problem areas.

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50

Expected RelationshipsExpected Relationships

1009080

25

20

15

10

5

0

1009080

9

8

7

6

5

4

3

2

1

0

Pro

fit

Scr

ap

Test Yield Test Yield

Understanding YieldUnderstanding Yield

FTY is not a good predictor for improving profits and/or decreasing scrap.

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51

“Hidden” costs in the “Real Factory” More manpower Extra floor space Longer cycle time More raw material More $$$$

Understanding YieldUnderstanding Yield

TestTestOperation 2Operation 2TestTestOperation 1Operation 1 ProductProduct

TestTest

FTY

Good Units_______Total units tested

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52

“Hidden” costs in the “Real Factory” More manpower Extra floor space Longer cycle time More raw material More $$$$

Understanding YieldUnderstanding Yield

HiddenHiddenFactoryFactory

Re-WorkRe-Workor Scrapor Scrap

Re-WorkRe-Workor Scrapor Scrap

FailureFailureAnalysisAnalysis

FailureFailureAnalysisAnalysis

TestTestOperation 2Operation 2TestTestOperation 1Operation 1 ProductProduct

TestTest

FTY

Good Units_______Total units tested

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Defects vs. DefectivesDefects vs. Defectives

Defects:

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

ProductProduct 0.40 0.40 DPUDPU

n

iiassemblysubtotal DPUDPU

1)(

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57

Rolled Throughput Yield (RTY)Rolled Throughput Yield (RTY)

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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59

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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61

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.

000,000,1iesOpportunitTotal

DefectsTotalDPMO

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Understanding OpportunitiesUnderstanding Opportunities

Which product is performing better, the pencil or the blender?

Pentel PencilPentel Pencil BlenderBlender

0.0300.030

97.04 %97.04 %

0.1890.189

82.78 %82.78 %Defects per Unit (DPU)

Rolled ThroughputYield (RTY)

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RTY = e - dpu

ln(RTY) = - dpudpu = - ln(RTY)

Pentel PencilPentel Pencil BlenderBlender

Defects per Unit (DPU)

Rolled ThroughputYield (RTY)

Opportunities

DPU/Opp

Product Sigma Level

Note: Assumes the defects were collected in the long term.

DPMO

0.0300.030

97.04 %97.04 %

1515

0.002000.00200

4.4054.40520002000

0.1890.189

82.78 %82.78 %

9797

0.001950.00195

4.4054.40519481948

Understanding OpportunitiesUnderstanding Opportunities

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

5 2 1 0.599% 3 3 3 395% 5 4 4 490% 6 6 5 585% 7 7 7 680% 9 8 8 770% 12 11 10 1050% 20 19 18 17

Insp

ecti

on

Eff

icie

ncy

Starting Defects per Unit, DPU

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

1 pass PRODUCT:ABC 123

2 fail BUSINESS:Division A

Known PopulationSample # Attribute Try #1 Try #2 Try #1 Try #2 Try #1 Try #2

1 pass pass pass pass pass fail fail2 pass pass pass pass pass fail fail3 fail fail fail fail pass fail fail4 fail fail fail fail fail fail fail5 fail fail fail pass fail fail fail6 pass pass pass pass pass pass pass7 pass fail fail fail fail fail fail8 pass pass pass pass pass pass pass9 fail pass pass pass pass pass pass

10 fail pass pass fail fail fail fail

Operator #1 Operator #2 Operator #3

Title Block

Enter Pass/Fail, 0/1, etc.

Known Workmanship or Customer Result

Operator Results

Blank Form: AttrR&R2.xls

Data Entry

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Spreadsheet Results withSpreadsheet Results withCalculated Confidence IntervalsCalculated Confidence Intervals

Statistical Report - Attribute Gage R&R Study

DATE: Today's DateNAME: Black Belt

PRODUCT: ABC 123BUSINESS: Division A

% Appraiser %Score vs AttributeSource Operator #1 Operator #2 Operator #3 Operator #1 Operator #2 Operator #3Total Inspected 10 10 10 10 10 10# Matched 10 8 10 7 6 6False Negative (operator rejected good product) 1 1 3False Positive (operator accepted bad product) 2 1 1Mixed 0 2 095% UCL 100.0% 97.5% 100.0% 93.3% 87.8% 87.8%Calculated Score 100.0% 80.0% 100.0% 70.0% 60.0% 60.0%95% LCL 69.2% 44.4% 69.2% 34.8% 26.2% 26.2%

% 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.

Repeatability

True value for one part Quantifies the

repeatability of the measurement system

Performance Characteristic

Repeatability DefinedRepeatability Defined

2 total = 2 product + 2 measurement system

2 total = 2 product + 2 repeatability + 2 reproducibility

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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)

2 total = 2 product + 2 measurement system

2 total = 2 product + 2 repeatability + 2 reproducibility

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The MethodologyThe Methodology

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.

Gage R&R Output: GraphicalGage R&R Output: Graphical

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The Bar ChartThe Bar Chart

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The Xbar and Range ChartThe Xbar and Range Chart

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Gage R&R, Xbar, and RGage R&R, Xbar, and R

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Operator BiasOperator Bias

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A Part-by-Part LookA Part-by-Part Look

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It allows us to visualize repeatability and reproducibility within and between operator and part

The center line is the overall average of the parts.

Another Graph: Gage Run ChartAnother Graph: Gage Run Chart

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

Misc:

43.94

44.04

44.14

44.24

1 2 3 4 5Part ID

Mea

sure

JoeMaryPat

43.94

44.04

44.14

44.24

6 7 8 9 10Part ID

Mea

sure

Runchart of Measure by Part ID, Name

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Gage Results: Minitab Session WindowGage Results: Minitab Session Window

%ContributionSource VarComp (of VarComp) Total Gage R&R 1.90E-04 2.86 Repeatability 8.73E-05 1.32 Reproducibility 1.02E-04 1.54 Name 1.02E-04 1.54 Part-To-Part 6.45E-03 97.14 Total Variation 6.64E-03 100.00

StdDev Study Var %Study Var %ToleranceSource (SD) (5.15*SD) (%SV) (SV/Toler) Total Gage R&R 1.38E-02 0.070923 16.90 14.18 Repeatability 9.35E-03 0.048129 11.47 9.63 Reproducibility 1.01E-02 0.052093 12.41 10.42 Name 1.01E-02 0.052093 12.41 10.42 Part-To-Part 8.03E-02 0.413572 98.56 82.71 Total Variation 8.15E-02 0.419609 100.00 83.92

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2*Categories Dist2

2

MS

TotalRoundDown

Gage R&R, Distinct CategoriesGage R&R, Distinct Categories

Number of Distinct Categories = Eight This is the number of distinct categories this

measurement system can distinguish.

The number of groups within your process data that your measurement system can discern.

The part is in one of these eight zones.

Source VarCompTotal Gage R&R 1.90E-04 Repeatability 8.73E-05 Reproducibility 1.02E-04 Name 1.02E-04Part-To-Part 6.45E-03Total Variation 6.64E-03

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Handling Poor Gage CapabilityHandling Poor Gage Capability

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.

2 total = 2 product + 2 repeatability + 2 reproducibility

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Project Selection IProject Selection I

Objectives

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.

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Narrowing Project Focus -Narrowing Project Focus -cont.cont.

Narrowing Project Focus: Narrowing of the focus must be consistent with the

primary business measure in the business case The following data is used in narrowing the project

focus: COPQ (re-work, scrap, etc.)

Narrows projects focused on reducing cost/unit Defect counts (actual defects, RTY, FTY)

Narrows projects focused on increasing quality or yield

Non-value-added time (re-work, delay, inspection) Narrows projects focused on decreasing cycle time

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Narrowing Project FocusNarrowing Project FocusReducing CostReducing Cost

Analysis to Reduce Project Focus:

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.

SUBPROCESSINPUTS

SUBPROCESS

SUBPROCESS

OUTPUT

Cost Cost Cost Cost+ ++ =Cost to Produce

Cost Cost

(continued)

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Narrowing Project FocusNarrowing Project FocusReducing Cost -Reducing Cost -cont.cont.

Analysis to Reduce Project Focus

Step 2: Pareto analysis of the COPQ

COPQ of re-work vs. scrap costs

COPQ for each sub process

COPQ of each re-work and scrap step

Category 1

Category 2

Category 3

Category 4

Category 5

Category 6

Category 7

Category 8Others

(12)

800 200 75 60 55 20 15 14 59

61.6 15.4 5.8 4.6 4.2 1.5 1.2 1.1 4.5 61.6 77.0 82.8 87.4 91.7 93.2 94.4 95.5 100.0

0

500

1000

0

20

40

60

80

100

Defect

CountPercentCum %

Pe

rce

nt

Co

un

t

All Defects by Category,xx/xx/99 to xx/xx/99

n=1298

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Narrowing Project FocusNarrowing Project FocusImproving QualityImproving Quality

Analysis to Reduce Project Focus

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

Defects

SUBPROCESSINPUTS

SUBPROCESS

SUBPROCESS OUTPUT

Defects Defects Defects Defects+ ++ =RTY RTY RTY RTYX XX = RTY

(continued)

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Category 1

Category 2

Category 3

Category 4

Category 5

Category 6

Category 7

Category 8Others

(12)

800 200 75 60 55 20 15 14 5961.6 15.4 5.8 4.6 4.2 1.5 1.2 1.1 4.5 61.6 77.0 82.8 87.4 91.7 93.2 94.4 95.5 100.0

0

500

1000

0

20

40

60

80

100

Defect

CountPercentCum %

Pe

rce

nt

Co

un

t

All Defects By Category,xx/xx/99 to xx/xx/99

n=1298

(continued)

Narrowing Project FocusNarrowing Project FocusImproving Quality -Improving Quality -contcont..

Analysis to Reduce Project Focus

Step 2: Pareto analysis of defects

Defects for each model

Type of defect

Defects by machine

Defects by shift

Defects by production line

Defects by plant

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Narrowing Project FocusNarrowing Project FocusImproving QualityImproving Quality -cont. -cont.

Analysis to Reduce Project Focus

Step 3: Assess COPQ for the defects in the narrowed project focus area

How much raw material is scrapped due to defects? Re-worked? Re-cycled?

What is the cost of the time in labor, machinery, and raw materials for the scrapped materials due to defects?

What is the cost of the time and labor spent re-working defects?

What is the cost of the time and labor lost on recycled defects? How do recycled materials impact the final product?

VALIDATE THESE COSTS WITH THE COMPTROLLER.

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Narrowing Project FocusNarrowing Project FocusReducing Cycle TimeReducing Cycle Time

Analysis to Reduce Project Focus:

Step 1: A high-level process map analysis of non-value-added time throughout the process Sub process input and output rates

Time spent in delay

Time spent in re-work sub processes

Time spent in test/inspection sub processes

SUBPROCESSINPUTS

SUBPROCESS

SUBPROCESS OUTPUT

Time Time Time Time+ ++ = Cycle Time

(continued)

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Category 1

Category 2

Category 3

Category 4

Category 5

Category 6

Category 7

Category 8Others

(12)

800 200 75 60 55 20 15 14 5961.6 15.4 5.8 4.6 4.2 1.5 1.2 1.1 4.5 61.6 77.0 82.8 87.4 91.7 93.2 94.4 95.5 100.0

0

500

1000

0

20

40

60

80

100

Defect

CountPercentCum %

Pe

rce

nt

Co

un

t

All Defects by Category,xx/xx/99 to xx/xx/99

n=1298

(continued)

Narrowing Project FocusNarrowing Project FocusReducing Cycle Time -Reducing Cycle Time -contcont..

Analysis to Reduce Project Focus Step 2: Pareto analysis of non-value-added time

Volume of backlog at each delay step

Time spent in delay foreach backlog step

Total non-value-added time after the last bottleneck

Time spent in eachre-work step

Time spent in each test/inspection step

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Narrowing Project FocusNarrowing Project FocusReducing Cycle Time Reducing Cycle Time -cont.-cont.

Analysis to Reduce Project Focus

Step 3: Assess COPQ for the non-value-added time to be eliminated by the project focus area

What is the inventory cost of the time in delay?

How much do re-work steps cost in terms of labor? Equipment?

How much do test/inspection steps cost in terms of labor? Equipment?

What will be the impact on units sold as a result of the lower cycle time?

VALIDATE THESE COSTS WITH THE COMPTROLLER.

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Narrowing Project FocusNarrowing Project FocusAdditional ConsiderationsAdditional Considerations

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.

What are the purposes of a problem statement?

To focus the team on a process deficiency

To communicate the significance to others

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Project DefinitionProject DefinitionProblem StatementProblem Statement

Required Criteria for a Good Problem Statement

It states the effect.

It states what is wrong, not why it is wrong. Avoid “lack of” and “due to” statements. These always imply solutions.

It is measurable.

It states how often, how much, and when.

It is specific.

It avoids broad and ambiguous categories such as “morale”, “productivity,” “communication,” and “training.”

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Project DefinitionProject DefinitionProblem StatementProblem Statement

Additional Criteria for a Good Problem Statement It focuses on the gap between what is and what should

be. The gap may be a change or deviation from the norm,

standard, or the customer’s valid requirement or expectation.

It is stated in an objective manner. It is not stated as a question, which may tend to imply a

solution. It does not imply blame on any person or department.

It focuses on the pain, either explicitly or implicitly. The problem statement highlights “how” customers are

affected and the areas of discomfort, hurt, or annoyance.

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Project DefinitionProject DefinitionProblem StatementProblem Statement

How are problem statements developed?

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)

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Project DefinitionProject DefinitionProject ObjectiveProject Objective

The project objective states the goal of the project. It must:

Address the issue in the problem statement

Quantify the expected performance improvement

Identify the expected timing

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Project DefinitionProject DefinitionProject ObjectiveProject Objective

Why are objectives useful?

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.

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Project DefinitionProject DefinitionProject ObjectiveProject Objective

How to set objectives:

Objectives should be set to be challenging but achievable during a reasonable amount of time.

They should be based on logic, not just pulled out of the air.

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Project DefinitionProject DefinitionPrimary MetricPrimary Metric

The yardstick that will be used to measure your success:

Must be consistent with the problem statement and objective

Must be plotted on a time series graph with the following lines:

Baseline performance (average over the past 12 months, if possible)

Actual performance

Target performance

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Project DefinitionProject DefinitionPrimary MetricPrimary Metric

Product Returns

0%

1%

2%

3%

4%

5%

6%

7%A

ug

96

Se

p96

Oct

96

No

v96

Dec

96

Jan

97

Fe

b97

Mar

97

Ap

r97

May

97

Jun

97

Jul9

7

Au

g97

Se

p97

Oct

97

No

v97

Dec

97

Ret

urn

$ a

s a

Pc

t o

f S

ale

s $

BaselineActualTarget

Project Metric Line Graph Example

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Project DefinitionProject DefinitionSecondary MetricSecondary Metric

The conscience that will “keep you honest”

Tracks potential negative consequences

More than one may be required

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Project Selection SummaryProject Selection Summary

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

Tel / e-mail: [email protected] Tel / e-mail: [email protected]

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

completedCapability

established

Analyze Phase Deliverables - Graphical Analysis (x Search)

Demonstrated appropriate tool use in completing the Measure Phase

Tool use not appropriate

Appropriate tool use

Exceptional Application

List of possible x's 3 0 0 Scheduled / Planned Being Compiled Being Finalized CompletedIdentification of Critical X's 3 0 0 Scheduled / Planned <=50% Complete <=75% Complete CompletedMulti-Vari Analysis 3 0 0 Understands proper Understands how Has applied tool Has applied t - Tests / Non-parametric hypothesis 3 0 0Test of Equal Variance 3 0 0Proportions Tests / Chi - Square 3 0 0ANOVA 3 0 0

Correlation and Regression 3 0 0Improve Phase DeliverablesDemonstrated appropriate tool use in completing the Analyze Phase

Tool use not appropriate

Appropriate tool use

Exceptional Application

DOE 4 0 0 Scheduled / Planned In ProcessAnalysis of simulation

Analysis of project DOE

Sample Size Selection 3 0 0 Scheduled / Planned AppliedSecond Project (Measure Phase) 3 0 0 Started <=50% Complete <=75% Complete Completed

Control Phase Deliverables

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

100%

INV

OL

VE

ME

NT

TIME

THE TARGET

FOR A SUCCESSFUL BLACKBELT PROJECT

Successful Change ProjectSuccessful Change Project

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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.

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Wrap-Up

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