Six Sigma DMAIC Training Overview Excerpts-3!19!09

8/10/2019 Six Sigma DMAIC Training Overview Excerpts-3!19!09

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Six Sigma DMAIC Training

(excerpts)

Presenter: Bruce Berger (386) 852-9054 [email protected]



Six Sigma is a proven methodology that will help usimprove our work in order to consistently ensure…

Our products and services meet (or exceed)customers’ needs

Our Processes are cost-effective

DBS employees are well-trained and motivated

State and federal statutory requirements are met

Why do we need Six Sigma?

Six Sigma Overview



What is Six Sigma?

Six Sigma Overview

A philosophy for systematically improving quality,and therefore efficiency.

A standard of performance equal to 3.4 defects

per million outputs (i.e. near perfection). Most operations are about 2.8 sigma (100,000

defects / million).

Very good operations are about 4 sigma (3,500defects / million).



1) Providing Customer Satisfaction through the total

involvement of ALL employees…

…Making Line Graphs move in the direction you

want them to go.

Target

GOOD

C u s t o m e

r S a t i s f a c t i o n

Year

Six Sigma is all about…

2)…Or put another way…

Line Graphs Help Us Understand Our Performance

Six Sigma Overview



We know we’re Successful when…

• Our costs for doing business are the lowest possible.

GOOD

Target = 80% % C u s t o m e r

S a t i s f a c t i o n

96%95%92%95%

Q3 ‘04 Q4 ‘04 Q1 ‘05 Q2 ‘05

• Our customers tell us

that they are pleased

with our services.

% Customer Satisfaction

Six Sigma Overview

• Our Employees are efficient.

• Our Services are Delivered On-Time.



Moving line graphs requires efforts in three (3) areas…

Process Management

helps us maintain

good results as we

perform ourMission

Strategic planning helps us

“focus” on key projectsto reach our

Vision

Process

Improvement

using theDMAIC

process helps us

fix work problems

and improve our

Performance

.

To be successful as an organization, we must learn how to

effectively apply ALL three (3) areas.

Six Sigma Overview

StrategicPlanning

Process Improvement

ProcessManagement

Six Sigma

Today’s training will overview theDMAIC

process.



Process

Improvement

utilizes a 5 step problem solving

DMAIC process:

2) Measure

5) Control

4) Improve

1) Define

3) Analyze

DMAIC 5 Steps

DMAIC Overview

Display Problem ...

W H A T

W H E R E

W H E N

W H O

O U T C O

M E

Stratify Problem ...

1. Define 2. Measure

3. Analyze 4. Improve

Results Standardization Future Plans

Checksheetor Spreadsheet Line Graph

Month

GOOD

Target

GAP

%

Histogram

n=63

21 Late

n=21

Pareto

B C A D

PROBLEM STATEMENT

Identify & Verify Root Cause ... Identify & Implement Countermeasures ...

Countermeasures MatrixSingle Case Bore Contingency TableFISHBONE

R E A S O N /

F A C T O R

A

B

C

1

CASE

2 3 4 5 A

Present

A

Absent

E f f e c t C a u s e Problem

No

Problem

35 3

4 25

A

Scatter Diagram

Cause "C"

E f f e c t

B

EFFECT

PROBLEM

STATEMENT

ROOT

CAUSE

A

C

A1

A2

C1

C2

4 4 16 Y

5 4 20 Y

3 1 3 N

E F F

F E A S

O V R L

A C T N ?

3 2 6 NCM

BARRIERS AIDS

High A1a A1b

HOW WHO

1. Dev

2. Impl

WHEN

CONTROL CHARTS

FLOW CHART

LESSONS LEARNED

WHAT'S NEXT?

GOOD

%

CM IMPL'M

Before After

n=21

n=10

OverallEffect

B C A D C B A D

Target

Standard

Action Plan

5. Control4. Improve



Lets look more closely at the two important tools used in Define.

The objective of step 1 is to “Demonstrate the importance

of improvement needs in measurable terms.”

Display Problem ...

W H A T

W H E R

E

W H E N

W H O

O U T C O M E

1.Define

Checksheetor Spreadsheet Line Graph

Month

GOOD

Target

GAP

%

Define Measure Analyze Improve Control

DMAIC Overview – Step 1: Define



MS Excel is used to construct unique spreadsheets to recorddata for analysis

Spreadsheets segment information into four key sections: Demographics (contain who, what, where or when--information about the

process)

Milestone Dates (key completion dates/times of steps in the process)

Durations (Performance Results calculated from the milestone datesautomatically)

Outcomes (Performance results of the process)

Data collection can be either manual or downloaded fromexisting systems

Can be used for ongoing monitoring of process performanceafter the project is completed

Process Status Summary

WHEN

12

L i n e

#MILESTONES DURATION OUTCOME

WHERE WHOWHAT

DEMOGRAPHICS

Step 1: Define - Spreadsheet Tool

S 1 D fi Li G h T l



Step 1: Define - Line Graph ToolGOOD

Target = 80% % C u s t o m e r

S a t i s f a

c t i o n

96%95%92%95%

Q3 ‘04 Q4 ‘04 Q1 ‘05 Q2 ‘05

Gap

Used to display performance trends

Relates performance to a target that is established by either

customers or the business

Displays the Gap between the observed performance and thetarget

DMAIC O i St 2 M



DMAIC Overview – Step 2: Measure

Lets look more closely at two important tools used

in Step 2: Measure

The objective of step 2 is to “Investigate the features of

the indicator, stratify the problem and set a target for

improvement.”

Stratify Problem ...

2. Measure

Histogram

n=63

21 Late

n=21

Pareto

B C A D

PROBLEM STATEMENT

Standard

St 2 M Hi t T l



Step 2: Measure –

Histogram ToolCustomer Service Document Requests Between Week 31 and Week 38 that Were Delivered

Late

0

20

40

60

80

100

120

-1.55 0.55 2.65 4.75 6.85 8.95 11.05 13.15 15.25 17.35 19.45 21.55 23.65 25.75 27.85 29.95

# of hours to deliver request

# o f R e q u e s t s

96

10

1 1 1 1

14

8 7 4

1

14

2

_ x n = 162 (2 outilers of 79 and 64 hours not shown)

mean = 7.139std dev = 8.538

USL=0.5 hours

MS Excel and QC Tools software used to construct graph

Fits data into a frequency distribution

Can show upper and lower specification limits and denote data that

falls outside those limits (the area on which the story should focus)

Used for data breakdowns by hours, minutes, dollars, etc.



Step 2: Measure – Pareto Tool

MS Excel and QC Tools software used to construct graphs

Tool used to rank data by groups from the group that contains the most

data points to the group that contains the fewest data points.

Look for a “large bar” or “young mountain”

Customer Service Requests Between Week 31 and Week 38 that Were Delivered Late

162

2925

129 7 5 2

99.2%97.2%

94.4%

90.8%

86.1%

76.1%

64.5%

0

50

100

150

200

250

DOCS LLR RS NFL O&E START QUESTION RS, DOCS

Request Type


0

10

20

30

40

50

60

70

80

90

100

% o

f T o t a l

n = 251

T O ti d G D i



Team Operations and Group Dynamics

The following are a few dynamics that all teams need

to be successful…

P-A-L (Purpose – Agenda – Limit)

Parking Lot

Recognition

4 Stages of Team Growth

Consensus and Brainstorming

Rules of Conduct

P A L



P-A-L

What Is An Effective Meeting?

Because organizations spend 7.15% of their personnel budgets,

35% of middle management's time, and 60% of top

management's time in meetings.

Why Are Effective Meetings Important?

An effective meeting is a meeting:

which is necessary.

which includes all individuals required to accomplish the

intended PURPOSE. which covers the AGENDA*.

where people know what is expected of them.

P A L (Cont )



P-A-L (Cont.)

What Is An Effective Meeting? (Cont.)

An effective meeting is a meeting:

where the real issues are on the table and being dealt with

and where most hidden agendas are legitimized and

surfaced for discussion.

where decisions and commitments are made, plans are

developed, problems are solved.

where people leave knowing what was accomplished and

what they are to do.

which meets its intended PURPOSE*.

which respects people by starting and ending on time

(LIMIT*).

P A L (Cont )



P-A-L (Cont.)

When Are Meetings Needed?

Meetings are useful:

for group problem solving.

for sharing information or advice.

for building commitment to a common goal.

for addressing problems or issues that involve a number

of people.

for planning.

for defining accountability and responsibility.

for group decision-making.

P A L (Cont )



P-A-L (Cont.)

How Are They Created?

Send a draft of the agenda. The person calling the

meeting should send out information on the agenda so

that the purpose, time frames and topics are clear before

people come to the meeting.

Start the meeting on time.

Revise and agree on an agenda. Add agenda items

suggested by others attending the meeting, as appropriate.

Finalize and agree on the agenda.

Agree on ground rules.

P A L (Cont )



P-A-L (Cont.)

How Are They Created? (Cont.)

Encourage active participation from all members.

Choose a process facilitator. To ensure an effective

meeting, someone needs to take responsibility for

managing the process portion of the meeting.

Focus the discussion. Clarify and summarize as

necessary to facilitate mutual understanding of

perspectives and ideas.

Decide how to decide. Determine how decisions will be

made in the meeting - by consensus, by multi-voting, by

majority voting, or by the team leader.

P A L (Cont )



P-A-L (Cont.)

How Are They Created? (Cont.)

Address all items raised. Insure that all items raised are

addressed by the end of the meeting and that the person

who raised the item knows what the next step will be,

specifically.

Check with the person who raised the issue to ensure they

know what needs to happen next to get the issue

addressed and that the proposed plan meets their needs.

Parking Lot



Parking Lot

Parking Lot is a strategy for recording and postponing

items raised during a meeting. Create a side list of items

to be addressed later. Before the meeting adjourns, review

ALL "parked" items and decide:

whether this group will address the item or refer it

elsewhere, and if the item will be addressed by the

group, decide when and how it will be addressed - (e.g.,

agenda next meeting, assign).

communicate decisions to the person who raised the

item.

Parking Lot (Cont )



Parking Lot (Cont.)

Summarize results, agreements, and next steps.

Acknowledge agreements. At the close of the meeting

review the decisions and agreements and other

accomplishments that happened in the meeting, and

review the next steps. WRITE IT ALL DOWN!

Acknowledging and celebrating what was accomplishedat a successful meeting gives people a sense of progress,

and rewards them for the time and effort the meeting

required. It also encourages them to work to make the

next meeting productive.

End the meeting on time.

Recognition



Recognition

Two major forces help drive Quality Improvement. These

are:

Personal satisfaction from participation in the process and

the knowledge that you can make constructive changes in

your work environment, which help meet the needs of the

customer.

External recognition, which honors those who contribute

to quality improvement.

The purpose of recognition is to formally

acknowledge the accomplishments of teams or teamrelated activities.

Recognition (Cont )



Recognition (Cont.)

Recognition is meant to be a "Win-Win"situation, but it is often difficult to implement

in a way that everyone perceives it as such.

Teams should recognize that successful long-

term recognition is most applicable on a local

level. Peer recognition and recognition by

your local management have a more direct,

lasting impact.

Team Growth



Team Growth

When small groups of people come together for the first time or when

other events occur, these groups are said to be in transition and will

undergo some predictable phases of team change or growth. Acorresponding change in individual comfort levels brings tension

and a sense of uneasiness to the whole team.

The net result is usually some form of undesired or dysfunctional team

behaviors. An awareness of these stages of group development andtheir related behaviors is important, especially for people leading

teams in transition. The transition can be triggered by numerous

events, including:

A small group coming together for the first timeChanging team leaders on an existing team

Member turnover

An unexpected surprise visitor sits in with the team

Team Growth (Cont )



Team Growth (Cont.)

Stage I: Form: This is where the group comes together either

for the first time or after being apart for long periods.

Stage II: Storm: This phase is characterized by intra-teamconflict as members become more familiar and more

comfortable with the team environment. They take more risks,

and often begin to become competitive with each other.

FORM STORM NORM PERFORM

Team Growth (Cont )



Team Growth (Cont.)

Stage III: Norm: This phase is typified by the development

of team cohesion. After all the conflict of phase II, the

members begin to recognize and accept the team norms, their

roles and the pecking order established in stage II. The

personal "quirks" of other members also become accepted, orat least better tolerated and torn relationships get patched back

up.

Stage IV: Perform: This is when the team really begins to

operate smoothly like a well-oiled machine. Members nowknow one another well; they freely depend on each other for

support and can thus focus on solving the problem and

objective decision-making instead of each other.

FORM STORM NORM PERFORM

Team Growth (Cont )



Team Growth (Cont.)

What Does This Mean To You?

Because the Form, Storm and Norm stages of groupdevelopment result in less than optimum output, teams often try

and push through these phases before their chemistry is ready to

move on in order to improve team productivity.

This might seem like a good idea, but it is really dysfunctional.

It is natural for people to go through predictable phases of

growth depending on maturity, experience, and other factors. Itis natural for teams to do so too. They must go through these

predictable phases as they mature and gain experience with each

other and the DMAIC Story.

Team Growth (Cont )



Team Growth (Cont.)

What Does This Mean To You? (Cont.)

The duration of each phase depends on individual and team maturity,

task complexity, leadership, and the sponsor's support.

While it is natural that teams go through these stages some teams can

get stuck in different stages. Given that the stages are unavoidable, an

idea to consider to help reduce the time needed for a "team intransition" to go through the stages and be fully productive, is to share

expectations about the group and its preferences and direction.

Specifically, the team can establish (as part of their rules of team

conduct) for example, there will be no "surprises". This can helpestablish an atmosphere of trust earlier in the evolutionary process

allowing for some interpersonal issues to be put aside so people can

focus on team objectives.

Team Growth (Cont )



Team Growth (Cont.)

FORM STORM NORM OR PERFORM

INDIVIDUAL ISSUES

What am I doing?

Who are these people?

Who is in charge?

How effective am I?

How much influence do I have?

I know how I belong

I know what I contribute

GROUP ISSUES

What is the charter?

Is this the right group?

Is this the right structure?

How do we work together?

What is each member responsible

for?

What should we be working on?

What changes might increase our

effectiveness?

Give and take

Celebration when it is earned

WHAT YOU WILL

SEE

Testing boundaries

Establishing rules

Caution

Politeness

Superficiality

Dependency/

Counter Dependency

Focus on methods

Conflict/tension

Cop out (quick agreement and

silence)

Polarization

Resistance

Win-Lose

Increased comfort

Role shifting

Little need to discuss methods

Identification with the group

Shared power and information

Fun

LEADERSHIP

STRATEGIES

Break the ice!

Get involved and participation

Elicit examination of differences

Model and support influential, not

aggressive communication

Provide positive and critical

feedback

Create celebration





Consensus is a group decision-making process that takes

each member's ideas and opinions into account and results ina decision that everyone in the group can support. It is an

effective method for decision-making because it involves

every member's participation. Consensus improves decision

quality, equalizes power, causes examination of alternatives,increases commitment to implement the decision and

promotes unity among the team members.

Brainstorming is a method used by a group of people to produce a large number of creative ideas in a relatively short

period of time.

Consensus (Cont )



Consensus (Cont.)

How To Reach Consensus:

The leader clearly lists the alternatives the group has to choose from

and opens the topic for discussion.

Each member of the group shares her/his ideas opinions and known

facts about what each feels the group's decision should be.

When the leader feels that the team is beginning to come to acommon agreement, he/she will clarify the position and ask the team

if there is a consensus. If everyone agrees that it is the best decision,

or feels that it is a decision that they can support, they state their

agreement and the leader confirms the decision. If a member has

new information or clarification of previous information that may be

helpful to the team, time is spent discussing the concern and the

process continues until consensus is achieved.

Consensus (Cont )



Consensus (Cont.)

THE GOALS OF CONSENSUS

Eliminate a “we-they” feeling. Focus on the problem, not on personalities, position, or points of view.

Reach a “win-win” decision.

Develop team ownership to the decision.

Key Guidelines For Decision Making By Consensus:

Avoid arguing based on opinion. Strive to focus on facts and objectivity.

Don't change your mind to avoid conflict. Change it based on facts and

objectivity. Look at differences among the group as positive ways to make

change. Coach each other to be honest, open and data based as much as

possible.

The following is an exercise to practice the decision-making technique of

consensus in a group setting. Pay special attention to member

involvement, as this will drive your success.

Brainstorming



Brainstorming

Brainstorming is an effective technique because of two main

principles:

1. Delayed Judgment - People are able to produce more

ideas when they delay evaluation of ideas until a later

time.

1. Extended Effort - More original and useful ideas arecreated when the group continues to generate ideas

beyond the initial, more obvious responses by filling an

agreed upon time limit or an agreed upon number of

ideas. The emphasis in the Generation Phase of a brainstorming session is always on the "quantity" of ideas

not the "quality." The quality will come later when ideas

are clarified and evaluated.

Brainstorming (Cont )



Brainstorming (Cont.)

How To Brainstorm:

The leader selects the method of brainstorming that will be usedand informs the team. It will usually be one of two popular types:

Structured or Round Robin

Unstructured Open Forum or Green Lighting

The leader clearly states the topic and purpose of the brainstorming

session. Everyone agrees on the topic or issue. The topic is then

written and placed in a prominent, visible position.

A recorder is selected to record all ideas on a flipchart orviewgraph transparency for all to see. Always having the words

visible to everyone at the same time avoids misunderstandings and

helps to inspire other new ideas.





How To Brainstorm (Cont.):

The leader reviews the following "Rules for Brainstorming" withthe group:

No discussion, comments or evaluation of any idea during the

generation phase.

All ideas will be recorded.

Quantity not quality is important during the generation phase.

State ideas briefly and clearly.

Build on recorded ideas.

Generation Phase- Begin the brainstorming session by postingideas on the flip chart. Make sure all ideas remain visible to the

team. Continue until the agreed upon time is used or the agreed

upon number of ideas are generated.





How To Brainstorm (Cont.):

Clarification Phase- During the Clarification Phase of

Brainstorming, the team goes over the list to make sure that

everyone understands all of the items. Do not discuss ideas.

Criticism and discussion will take place during the

Evaluation Phase and in Multi-voting.

Evaluation Phase- Finally, during the Evaluation Phase, the

team reviews the list to eliminate duplications, irrelevancies

and issues that are off limits or cannot possibly be addressedor acted upon by this team.

Rules of Conduct



Rules of Conduct

Rules of Conduct:

One practical way to reinforce the principle of RespectPeople is to establish and follow Rules of Conduct during

meetings. Your team can either adopt the Rules of

Conduct, shown below, or modify them to best suit your

team's needs.

Rules Of Conduct

Respect others

Keep an open mind Listen without interrupting

Share the load

Constructively criticize

ideas, not people

Question and participate Attend all meetings

Follow the P.A.L.

Rules of Conduct (Cont )



Rules of Conduct (Cont.)

With the ground rules established, the team can

begin the continuous improvement cycle, P-D-C-A, but meetings must be effectively managed to ensure

progress and success.

Rules Of Conduct

Respect others

Keep an open mind

Listen without interrupting

Share the load

Constructively criticize

ideas, not people

Question and participate

Attend all meetings Follow the P.A.L.

How to Construct Line Graph Outcome Indicators



1. Draw and label each axis. Label the horizontal axis with the frequency of

measurement (i.e., hour, day, week, month, etc., or by occurrence). Label

the vertical axis with the indicator to be displayed. Construct appropriate

measurement scales on each axis.2. Title the line graph with full Indicator Description including Location

and Time Period .

How to Construct Line Graph Outcome Indicators

GOOD

Week Ending

% =

100%

25%

50%

75%%

Q3 % of Product Orders Delivered On-Time

Source: XYZ Data Base

Bruce Berger 2/09/07

2006 # of Product Order Delivered On-Time

# of Total Orders Delivered

9/8/06 9/15/06

Target = 90%

X 100

9/22/06 9/29/06

26.4%

60.7% 61.1%57.1%

Average = 49.8%

Construct Line Graph Outcome Indicators (Cont.)



3. Show indicator formula if the indicator results from a calculation.

4. Draw a good arrow and target. The target is displayed as a dashed line.

5. Fill in the source block and include source of the data, who collected the

data and the time period that data was collected from the source.

Construct Line Graph Outcome Indicators (Cont.)

Data Collection Spreadsheet



Data Collection Spreadsheet

MS Excel is used to construct unique spreadsheets to record data foranalysis

Spreadsheets segment information into four key sections: Demographics (contain who, what, where or when--information about the process)

Milestone Dates (key completion dates/times of steps in the process)

Durations (Performance Results calculated from the milestone dates automatically)

Outcomes (Performance results of the process)

Data collection can be either manual or downloaded from existingsystems

Can be used for ongoing monitoring of process performance after theproject is completed

Process Status Summary

WHEN

12

L

i n e #

MILESTONES DURATION OUTCOME

WHERE WHOWHAT

DEMOGRAPHICS

The Pareto Background



The Pareto—

Background

1897 . . . Italian Economist, Vilfredo Pareto, presented

a formula showing that the distribution of income is

uneven (i.e., the largest share of the world's income is

held by small number of people).

1907 . . . U.S. Economist, M. C. Lorenz, expressed asimilar theory in a diagram.

Later . . . Quality Control expert, Dr. J. M. Juran,

applied Lorenz's diagram method to classify problems of

quality into "vital

How the Pareto Diagram was Born

The Pareto Background



The Pareto—

Background

The Pareto is a graphical tool used to rank datasets

within a data group. It helps us distinguish between the

“significant few” and the “trivial many” datasets. It is

primarily used to identify the most serious or most

frequently occurring dataset(s) and is based on theconcept that 80% of the data group problems (or, at least

a “large” percentage) result from 20% of the datasets.

Pareto diagrams are to be constructed for only discrete

(or countable or attribute) data.

What is a Pareto Diagram?

The Pareto Construction



1. Draw a box.

2. Display the number of items in the upper left corner as shown below (n=101).

3. Title the PARETO by describing the data that is being stratified.(Hint: answer the Question,” What is n?”…(i.e What are the 101?)

4. Label three (3) sides of the box as follows:1. Left side: Number of __________ Construct a measurement scale on the left side starting

with zero at the bottom and the “n” (e.g., 101) value at the top. Add additional appropriatescale values on the left side.

2. Bottom side: Label with the name of the What, Where, When or Who data group to be

displayed (e.g., County). Draw each bar at the appropriate height descending from the leftstarting with the biggest bar. Label each bar and display bar height values above each bar.

3. Right side: Label this side “Cumulative Percentage” and display measurement grids at 0%,25%, 50%, 75% and 100%.

4. Construct a “Cumulative Percentage” line: Line starts in lower left corner at “zero” andconnects labeled data points plotted at or directly above the upper right corner of each barand at a height equal to the cumulative percentage, calculated as follows: % = (bar heights of

all bars to left data point) ÷ (the total n) * 100 (e.g., (76+20) ÷ (101) * 100 = 96%).5. Add a source box.

The Pareto—

Construction

The Pareto–

Example



The Pareto –

Example Customer Service Requests Between Week 31 and Week 38 that Were Delivered Late

162

2925

12 9 7 5 2

99.2%97.2%

94.4%

90.8%

86.1%

76.1%

64.5%

0

50

100

150

200

250

DOCS LLR RS NFL O&E START QUESTION RS, DOCS

Request Type


0

10

20

30

40

50

60

70

80

90

100

% o

f T o t a l

n = 251

Six Sigma DMAIC Training Overview Excerpts-3!19!09

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