What do CSI, Oglethorpe and Six Sigma have in common?

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What do CSI, Oglethorpe and Six Sigma have in common?

Victor Kane – KSU Associate Professor Department of Mathematics and Statistics

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Orientation Overview

• What is Lean Six Sigma?• Origin of Lean Six Sigma• Process Improvement Organizational Model• Quality Awards Using Process Improvement• KSU Customer Service Initiative• Research Activity in Six Sigma

• Six Sigma Jobs: http://www.indeed.com/

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What is Lean Six Sigma?

• Definition – Lean Six Sigma is an improvement methodology for reducing cost through improving products and services related to customer satisfaction.

• Observation – the methodology used in Lean Six Sigma is not new, but a disciplined evolution of approaches used in Quality Control during the 20th century.

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Why Consider Lean Six Sigma?

• Jack Welch – CEO GE (1981-2001) http://www.youtube.com/watch?v=aNMULFcLuIM

“I see a Six Sigma company as a company whose management understands that variation is evil….”

• Ewy and Gmitro (2009) “Process Management in Education”

http://www.asq.org/quality-press/display-item/index.pl?item=E1352

“Six Sigma is a process improvement methodology used by process managers to create breakthrough improvements.”

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Origin of Lean Six SigmaStart Year Author(s) Label Unique Characteristics

1920s Shewhart SPC Process Monitoring by Statistical Process Control 1926+ Juran Top management is responsible for quality, improvement

projects, Pareto principle, etc. 1947+ Deming 14

Points Many lectures in Japan addressing: 1) management responsibility 2) understanding variation

1949 Ohno TPS Toyota Production System (forerunner of Lean); uses Kaizen teams, JIT inventory, flows, waste elimination & cycle time reduction

1950+ Taguchi Robust Design

Developed methods to make product and process designs more robust to outside influences.

1950 JUSE Deming Prize

Award for best quality companies; Administered by Japanese Union of Scientists and Engineers

1951 Figenbaum TQC Total Quality Control: uses company-wide approach of methods from Deming, Juran, Cosby & Ishikawa

Six Sigma Tool/Process Lean Six Sigma Tools/Process

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Six Sigma BeginsStart Year Author(s) Label Unique Characteristics 1962 Ishikawa QC

Circles Quality Control Circles in Japan – employee groups working on improvements using 7 statistical tools

1979 Crosby Quality is Free book established concepts zero defects goal & cost of nonconformance is large

1980 NBC White Paper

Television documentary “If Japan Can, Why Can’t We?” featured Deming and launched American quality revolution. Many Deming lectures followed. http://www.youtube.com/watch?v=GHvnIm9UEoQ

1984 U.S. Navy TQM Total Quality Management company-wide approach to quality: uses Deming, Juran, Crosby & Ishikawa ideas. Based on many TQC principles. http://www.youtube.com/watch?v=Pd_uRGy5RKY

1987 Bill Smith Six Sigma

Motorola CEO Bob Galvin launches Six Sigma program. DMAIC problem solving addressing defects and variability using projects involving small teams focusing on internal processes http://www.youtube.com/watch?v=UxCeeUqrfs4

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Lean Six Sigma BeginsStart Year Author(s) Label Unique Characteristics 1988 Motorola wins MBNQA 1988 Krafcik Lean Sloan article “Triumph of the Lean Production System” based on

TPS principles. http://www.youtube.com/watch?v=PQspf3q12mo

1993 Allied Signal (Honeywell) CEO Larry Bossidy launches SS program 1996 GE CEO Jack Welch launches SS program Mid

1990+ Lean

Six Sigma

Companies such as Allied Signal and Maytag combined two improvement approaches TPS and Six Sigma.

1999 NIST MBNQA added Education and Health Care categories 2001 U. of WI

Stout Wins MBNQA in Education Category, graduate (8,000 students)

http://www.baldrige.nist.gov/PDF_files/UWStout_Application_Summary.pdf

2005 Richland College

Wins MBNQA in Education Category, 2 year (3500 students) http://www.baldrige.nist.gov/PDF_files/Richland_College_Application_Summary.pdf

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Key Elements of Lean Six Sigma

1) Cost and Service Improvement Focus2) Process Based Analysis with DMAIC 3) Project Based Organization4) Team Oriented with Employee Training Levels

• White, Yellow, Green, Black Belt• Master Black Belt, Champion

4) Data Driven with Key Measures Defined5) Customer Satisfaction Measures

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Key Lean Six Sigma Tools

1) DMAIC Problem Solving ProcessDefine→Measure⇄Analyze→Improve→Control2) Basic Data Analysis (7 statistical tools)3) Process Mapping with Flows of Everything4) Process Monitoring and Capability5) Team Discussion Methods (7 mgmt tools)6) Many Statistical Methods7) Lean Flow and Cycle Time Focus

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Lean Six Sigma Improvement Strategies

1) Defects – what is not done right the first time2) Process Analysis and Simplification3) Find and Optimize Process Key Measures that

impact cost/satisfaction. Cost improvement is an outcome not the primary measure.

4) Rationalize Flows of Material & Information5) Standardization of Work Methods6) Error Proof Process Steps 7) Benchmark Similar Processes

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Six Sigma Assumptions

• All work is accomplished using a process.• Every process has inputs (X’s) with outputs

(Y’s) which relate to customer satisfaction.• Every process has value-added activities that

transform X’s to Y’s. The goal of a project is to discover the critical X’s and optimize them to obtain the best level of Y’s.

Process Map Elements

1) Translation of Req’mts 3) Combining Inputs 2) Processing Inputs 4) Organizational Records

Value Added Process

Document Control

Business Processes

Customer Satisfaction

Quality Planning

Quality Objectives

Management Review

Corrective & Preventive

Action

Data Control

Internal Auditing

Standard Operating Procedures

Purchase Communication

TrainingPersonnelRecords

Inpu

t

Cust

omer

Req

uire

men

ts

Out

put

Cust

omer

Sati

sfac

tion

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Process Flowchart Basics• Six Sigma principle: All work in an organization is performed in

a process. See video: http://www.youtube.com/watch?v=J6Aqg7CKRa8

• Consequence: After defining targeted measures to improve, the first step in improvement is detailed definition of processes.

Start

InputsData or Information

Value-Added Activity - 1

MCustomer

Satisfaction

M=MeasuresProcess performance metricsCounts, times, measures

Value-Added Activity – 2A Outputs End

Value-Added Activity – 2B

Customer Use

MM

M

M

AlternatePath

Step 1Correct

?Y

Rework

M

M

Start

New SAT/ACT scores

System uploads scores to the file Duration: 1 day

Scores operator generates report of student files with new SAT/ACT

Duration: 1 day

Scores operator organizes and cleans the report

Duration: 20 days

Scores operator gives report to freshman entry operator

Duration: 1 day

freshman entry operator reviews the file

Duration: 1-2 days

Student Accepted already

End

Acceptance Letter

Score above minimum standard

Yes

No

Yesfreshman entry operator accepts

student

No

Reviewing process for a student with new SAT / ACT scores who has previously been reviewed

As Is March 01, 2010

Total Processing Time: 25 days

Number of scores received per month 2010 : Jan: 2,028 SAT, 1,768 ACT Feb: 387 SAT, 516 ACT

Scores operator downloads scores into applicants ‘ files

Duration: 1 day

freshman entry operator reviews Learning Support requirements

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Common Six Sigma Metrics

1) Defects per Time Period ( Items not correct the first time)2) First Time Through - % of products/services with no changes,

adjustments, etc.3) Rework - % of units in that require some change4) Cycle Time – time required to complete a process5) Wait Time – time customer waits for service6) Yield – number units entering process versus number exiting

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Organizational Perspective

• What is the “Big Picture”?• Are these activities interrelated?

Process Management Improvement System – DMAICTeam-Based Improvement StrategyData Based Key MeasuresCustomer Focus, etc.

• Is there a model to represent how the entire organization might function?

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1Leadership

2Strategic Planning

3Customer

and Market Focus

6 Process

Management

5 Human Resource

Focus

7Organizational

Results

4Measurement, Analysis, and Knowledge Management

Organizational Profile:Environment, Relationships, and Challenges

Criteria Framework: A Systems Perspective

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Historical Perspective

o Baldrige established in 1987 to recognize U.S. organizations for quality and performance achievements

o Established as a diagnostic tool for self- and third-party assessments

o 70+ nations have Baldrige-based award processeso 40 states have Baldrige-based award processeso Initial focus was on the manufacturing industryo Currently many sectors: business, industry, government,

education, healthcare, and nonprofito Video: http://www.baldrige.nist.gov/Video/Getting_Results/index.html

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Baldrige Education Winners

• Baldrige has adapted Performance Criteria to education. http://www.quality.nist.gov/Education_Criteria.htm

• U. Of Wisconsin – Stout : Wins MBNQA (2001) , graduate (8,000 students)

http://www.baldrige.nist.gov/PDF_files/UWStout_Application_Summary.pdf

• Richland College – Dallas, Texas: Wins MBNQA (2005), 2 year (3500 students)

http://www.baldrige.nist.gov/PDF_files/Richland_College_Application_Summary.pdf

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Baldrige and Lean Six Sigma

It must be emphasized that NO specific process improvement system is required by Baldrige criteria. A relevant criteria question is:

6.2 Work Processes: How do you design, manage, and improve your key organizational work processes?

Note 2 states: “… your organization might implement approaches such as PDCA…ISO standards, Six Sigma, or Lean….”

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What is Georgia Oglethorpe Award Process, Inc.?• Public-private partnership (1997)

Mission – Leading Georgia’s Organizations

to Improve Performance

Vision – Georgia Outperforming the World!• Modeled after the Malcolm Baldrige National Quality Award Criteria and Award Process

• http://www.georgiaoglethorpe.org/

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Georgia Focus Recognition

Step 1

Georgia Progress Award

Step 2

Georgia Oglethorpe Award

Step 3

Three Step Process

Maturity andRecognitionOptions

Baldrige Award(For those eligible.)

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Customer Service State Initiative

In 2006, Governor Sonny Perdue launched the “Customer Service Improvement” initiative to assist in achieving the goal of making Georgia the best-managed state in the country.

It was the Governor’s desire that this initiative serve as both a catalyst and a vehicle to create a change in our culture towards providing better customer service across all areas of service in the state.

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• In coordination with the Governor's Customer Service Initiative, Chancellor Davis mandated that every USG campus is to implement a plan for improving customer service.

• Each institution has Customer Service Champion to manage/promote the Governor’s initiative. KSU Linda Lyons

• Plans are developed each FY with identified units.

• Outline clear and measurable ways to track the campus' progress toward improved customer service.

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BOR’S STRATEGIC PLAN: Goal Six: Increase efficiency, working as a SystemChallenge:The USG will implement systematic process improvement efforts across the campuses in order to promote effectiveness.

Action:Establish a process improvement initiative.

Activities for Implementation:• Implement a Lean Six Sigma training program.• Implement process improvement efforts.

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KSU Unit Participation

The following units at Kennesaw have participated in the CS Improvement Program:

The Office of Student Financial Aid – FY “07 “, “09”, “10”Business Services and KSU Bookstore – FY “08”Continuing Education – FY “09”Plant Operations/ Facilities - FY “10”Office of the Registrar - FY “10”

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KSU Awards/Recognitions

The following units at Kennesaw have participated in the CS Improvement Program:

The Office of Student Financial Aid – FY “07 “, “09”, “10”Business Services and KSU Bookstore – FY “08”Continuing Education – FY “09”Plant Operations/ Facilities - FY “10”Office of the Registrar - FY “10”

Chancellor’s Customer Service Awards 2007

Outstanding Customer Service Institution of the Year Outstanding Customer Service Leadership Gold Award – Linda Lyons Outstanding Customer Service Improvement Gold Award – Coles College of Business Outstanding Customer Service Improvement Silver Award – New Hires Online Project

2008 Outstanding Customer Service Institution of the Year Joseph Greene Champion of the Year Award – Linda Lyons Outstanding Customer Service Improvement Bronze Award – KSU Bookstore Outstanding Customer Service Individual Bronze Award – Dr. Charles Aust Outstanding Customer Service Team Bronze Award – Enrollment Services Communication Center

2009 Outstanding Customer Service Leadership Award - Honorable Mention – Kim West, KSU Registrar Outstanding Customer Service Team Gold Award – KSU’s Customer Service Council

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Project Essentials

•Define is the first step in DMAIC. This is the most difficult phase. It is said that “A well defined problem is half solved”.• To assist in project definition a Project Charter can be used. Template:

http://www.6sigma.us/user/Six%20Sigma%20Project%20Charter%20Template%20v1.doc

• Key elements to start a project definition:1) Practical problem description and measures2) Objective – What does success look like?3) Scope with organizational boundaries4) Time commitment authorized for each team member5) Schedule for updates

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Research Topics in Six Sigma

Six Sigma Project Steps - DMAIC1) Define2) Measure 3) Analyze4) Improve5) Control

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Research Topics in Six Sigma

Six Sigma Project Steps - DMAIC1) Define2) Measure 3) Analyze4) Improve5) Control

Measurement Systems AnalysisMSA

Accuracy

Reproducibility

Repeatability

On Target

Operator Error

Gage Variation

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MSA Project Applications

1) Industry – What is diameter of an oval hole?

2) Service (Business, Health Care, Government, etc.) …• What is service quality?• What are defects, service accuracy?• What are Key Measures?

3) Education – Define measures for……• Student Competency• Effective teaching• Stakeholder Satisfaction

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Traditional MSA – GRR Study

Gage Repeatability and Reproducibility (GRR) Study

Repeatability & ReproducibilityAccuracy

MSA

Study Reference Parts

Fixed BiasInference

Test for Reproducibility

Estimate % Tolerance: Repeatability

Reproducibility

Random Effects ANOVA for Parts

yijk = μ + Pi + Aj + (PA)ij + 𝝐ijk

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New MSA

Gage Accuracy, Repeatability & Reproducibility (GARR)

AccuracyRepeatability & Reproducibility

MSA

1) Test for Reproducibility 2) Test for Random Bias 3) Test for Constant Bias

Estimate % ToleranceRandom BiasRepeatability

Reproducibility

Random Effects Model for Bias

bijk = β + Bi + Aj + (AB)ij + ijk

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GARR Summary of Results

1) Requires Reference Gage & Measurement Operational Definition for “True” Measures

2) Obtains Traditional R&R Measures3) Accuracy is estimated with three parameters:

constant bias, random bias & an interaction.4) Meaningless F-test replaced by three bias

tests all in one-step model ANOVA5) Much improved MSA diagnostic information

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Thank You!!

May your processes be productive and satisfy your customers….

Question: “What do CSI, Oglethorpe and Six Sigma have in common?”

Answer: ???

Process Focus!!