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Six Sigma
2
Outline
◼ What is Six Sigma?
◼ Phases of Six Sigma
◼ Define
◼ Measure
◼ Evaluate / Analyze
◼ Improve
◼ Control
◼ Design for Six Sigma
◼ Green Belts & Black Belts
3
A Vision and Philosophical commitment to our
consumers to offer the highest quality, lowest cost
products
A Metric that demonstrates quality levels at
99.9997% performance for products and processs
A Benchmark of our product and process capability
for comparison to ‘best in class’
A practical application of statistical Tools and Methods
to help us measure, analyze, improve, and control our
process
What is Six Sigma?
4
What Six Sigma is Not
◼ Just about statistics
◼ A quality program
◼ Only for technical people
◼ Used when the solution is known
◼ Used for “firefighting”
5
1. Reduces dependency on “Tribal Knowledge”
- Decisions based on facts and data rather than opinion
2. Attacks the high-hanging fruit (the hard stuff)
- Eliminates chronic problems (common cause variation)
- Improves customer satisfaction
3. Provides a disciplined approach to problem solving
- Changes the company culture
4. Creates a competitive advantage (or disadvantage)
5. Improves profits!
Why Companies Need Six Sigma
6
99.9% is already VERY GOOD
But what could happen at a quality level of 99.9% (i.e., 1000 ppm),
in our everyday lives (about 4.6)?
• More than 3000 newborns accidentally falling
from the hands of nurses or doctors each year
• 4000 wrong medical prescriptions each year
• 400 letters per hour which never arrive at their destination
• Two long or short landings at American airports each day
How good is good enough?
7
How can we get these results?
◼ 13 wrong drug prescriptions per year
◼ 10 newborn babies dropped by doctors/nurses per year
◼ Two short or long landings per year in all the airports in the U.S.
◼ One lost article of mail per hour
8
Six Sigma as a Metric
Sigma =  = Deviation
( Square root of variance )
-7
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
7
Axis graduated in Sigma
68.27 %
95.45 %
99.73 %
99.9937 %
99.999943 %
99.9999998 %
result: 317300 ppm outside
(deviation)
45500 ppm
2700 ppm
63 ppm
0.57 ppm
0.002 ppm
between + / - 1
between + / - 2
between + / - 3
between + / - 4
between + / - 5
between + / - 6

9
Effect of 1.5 Sigma Process Shift
10
3 Sigma Vs. 6 Sigma
The 3 sigma Company The 6 sigma Company
◼ Spends 15~25% of sales dollars on cost of
failure
◼ Spends 5% of sales dollars on cost of failure
◼ Relies on inspection to find defects ◼ Relies on capable process that don’t produce
defects
◼ Does not have a disciplined approach to
gather and analyze data
◼ Use Measure, Analyze, Improve, Control and
Measure, Analyze, Design
◼ Benchmarks themselves against their
competition
◼ Benchmarks themselves against the best in
the world
◼ Believes 99% is good enough ◼ Believes 99% is unacceptable
◼ Define CTQs internally ◼ Defines CTQs externally
11
Sigma and PPM
2
3
4
5
6
308,537
66,811
6,210
233
3.4
 PPM
Process
Capability
Defects per Million
Opportunities
Focusing on  requires thorough process
understanding and breakthrough thinking
0
10
20
30
40
50
60
70
80
1 2 3 4 5 6
Process Sigma
%
Change
0
100000
200000
300000
400000
500000
600000
700000
800000
PPM
From 1 to 2
From 3 to 4
From 4 to 5
From 5 to 6
% Change
PPM
12
Motorola ROI
1987-1994
• Reduced in-process defect levels by a factor of 200.
• Reduced manufacturing costs by $1.4 billion.
• Increased employee production on a dollar basis by 126%.
• Increased stockholders share value fourfold.
AlliedSignal ROI
1992-1996
• $1.4 Billion cost reduction.
• 14% growth per quarter.
• 520% price/share growth.
• Reduced new product introduction time by 16%.
• 24% bill/cycle reduction.
Six Sigma ROI
13
General Electric ROI
1995-1998
• Company wide savings of over $1 Billion.
• Estimated annual savings to be $6.6 Billion by the year 2000.
Six Sigma ROI
14
Six Sigma as a Philosophy
Internal &
External
Failure
Costs
Prevention &
Appraisal
Costs
Old Belief
4
Costs
Internal &
External
Failure Costs
Prevention &
Appraisal
Costs
New Belief
Costs
4
5
6
Quality
Quality
Old Belief
High Quality = High Cost
New Belief
High Quality = Low Cost
 is a measure of how much
variation exists in a process
15
“The fact is, there is more reality with this
[Six Sigma] than anything that has come
down in a long time in business. The more
you get involved with it, the more you’re
convinced.”
Larry Bossidy
CEO, Honeywell
16
Outlook Short term Long term
Analysis Point estimate Variability
Tolerance Worst case design RMS
Process Tweaking SPC
Problem Fixing Preventing
Behavior Reactive Proactive
Reasoning Experience Statistics
Aim Organization Customer
Direction Seat of Pants Benchmarking
Improvement Automation Optimization
Issue Classical Six Sigma
Six Sigma as a Strategic Tool
17
Six Sigma Tools
Process Mapping Tolerance Analysis
Structure Tree Components Search
Pareto Analysis HypothesisTesting
Gauge R & R Regression
RationalSubgrouping DOE
Baselining SPC
18
➢ Project defined in Business Terms
➢ Cross Functional Team Involvement
➢ DMAIC Problem Strategy used
➢ Qualitative and Statistical tools used
➢ Sustained Business Results Achieved
What Does Six Sigma Look Like?
19
Six Sigma Principles
◼ Customer Focus
◼ Leadership
◼ Innovative and Proactive
◼ Boundary-less
◼ World Class Quality
◼ Fact Driven
◼ Process Management
20
Breakthrough
Strategy
Characterization Phase 2:
Measure
Phase 3:
Analyze
Optimization
Phase 4:
Improve
Phase 5:
Control
Projects are worked through these 5 main
phases of the Six Sigma methodology.
Phase 1:
Define
Problem Solving Methodology
21
Project Charter
◼ Business Case
◼ Problem Statement
◼ Goal Statement
◼ Team Members
◼ Team Role & Responsibility
◼ Action plan VS. budget
22
Define Phase
◼ Define Process
◼ Define Customer requirement
◼ Prioritize Customer requirement
23
Define Phase
◼ SIPOC Model Kano Analysis
◼ Customer Survey CTQ Diagram
◼ Customer Requirement Analysis
◼ QFD Literature Review
◼ Standard / Regulation Review
24
Define Phase
◼ Project Review
◼ Project Charter
◼ Business Case
◼ Problem Statement
◼ Goal Statement
◼ Scope of process
◼ Prioritized customer requirement
25
Reduce
Complaints
(int./ext.)
Reduce
Cost
Reduce
Defects
Problem Definitions need to be based on
quantitative facts supported by analytical data.
What are the Goals?
✓ What do you want to improve?
✓ What is your ‘Y’?
Problem Definition
26
To understand where you want to be,
you need to know how to get there.v
Map the Process
Measure the Process
Identify the variables - ‘x’
Understand the Problem -
’Y’ = function of variables -’x’
Y=f(x)
27
Measure
Characterize Process
Understand Process
Evaluate
Improve and Verify Process
Improve
Maintain New Process
Control
28
Define
Problem
Understand
Process
Collect
Data
Process
Performance
Process Capability
- Cp/Cpk
- Run Charts
Understand Problem
(Control or
Capability)
Data Types
- Defectives
- Defects
- Continuous
Measurement
Systems Evaluation
(MSE)
Define Process-
Process Mapping
Historical
Performance
Brainstorm
Potential Defect
Causes
Defect
Statement
Project
Goals
Measure Phase
29
Measure Phase
◼ Identify measurement and variation
◼ Determine data type
◼ Develop data collection plan
◼ Perform measurement system analysis
◼ Perform data collection
◼ Perform capability analysis
30
Measure Phase
◼ Effectiveness of existing process
◼ Efficiency of existing process
◼ Calculate Sigma Level
◼ Calculate Cost of poor quality
31
Measure Phase
◼ SIPOC-RM
◼ CTQ-R
◼ Check Sheet
◼ MSA
◼ Basic Statistics
Graph
Role Throughput Yield
Process Capability
DPMO
COPQ Calculation
32
Measure Phase
◼ Project Review
◼ Customer satisfaction
◼ Effectiveness of process
◼ Efficiency of process
◼ Base line sigma (Yield, DPMO, CPk)
◼ Cost of poor quality
33
Baselining:
Quantifying the goodness (or badness!) of the current process,
before ANY improvements are made, using sample data. The key to
baselining is collecting representative sample data
Sampling Plan
- Size of Subgroups
- Number of Subgroups
- Take as many “X” as possible into consideration
Measure Phase
34
How do we know our process?
Process Map
Historical Data
Fishbone
35
RATIONAL SUBROUPINGAllows samples to be taken that
include only white noise, within the samples. Black noise
occurs between the samples.
RATIONAL SUBGROUPS
Minimize variation within subgroups
Maximize variation between subgroups
TIME
PROCESS
RESPONSE
WHITE NOISE
(Common
Cause Variation)
BLACK NOISE
(Signal)
36
Visualizing the Causes
 st + shift =
total
Time 1
Time 2
Time 3
Time 4
Within Group
•Called short term (st)
•Our potential – the best
we can be
•The s reported by all 6
sigmacompanies
•The trivial many
37
Visualizing the Causes
Between Groups
 st + shift = total
Time 1
Time 2
Time 3
Time 4
•Called shift (truly a
measurement in sigmas of how
far the mean has shifted)
•Indicates our process control
•The vital few
38
Assignable Cause
◼ Outside influences
◼ Black noise
◼ Potentially controllable
◼ How the process is actually performing over time
Fishbone
39
Common Cause Variation
◼ Variation present in every process
◼ Not controllable
◼ The best the process can be within the present
technology
40
2
Total = 2
Part-Part + 2
R&R
Recommendation:
Resolution  10% of tolerance to measure
Gauge R&R  20% of tolerance to measure
• Repeatability (Equipmentvariation)
Variation observed with one measurement device when used several times by one operator
while measuring the identical characteristic on the same part.
• Reproducibility (Appraised variation)
Variation Obtained from different operators using the same device when measuring the
identical characteristic on the same part.
•Stabilityor Drift
Total variation in the measurement obtained with a measurement obtained on the same
master or reference value when measuring the same characteristic, over an extending time
period.
Gauge R&R
Part-Part
R&R
41
Measure
Characterize Process
Understand Process
Evaluate
Improve and Verify Process
Improve
Maintain New Process
Control
42
Evaluate / Analysis Phase
◼ Data Analysis
◼ Process Analysis
◼ Formulate Hypothesis
◼ Test Hypothesis
43
Evaluate / Analysis Phase
◼ Run chart Histogram
◼ Pareto chart Scatter Diagram
◼ Relation Diagram CE Diagram
◼ Process Analysis
◼ Hypothesis Testing
Chi-square T-Test ANOVA Correlation
Regression
44
Evaluate / Analysis Phase
◼ Project Review
◼ Validated root cause statement
45
In many cases, the data sample can be transformed so that it is approximately normal. For example,
square roots, logarithms, and reciprocals often take a positively skewed distribution and convert it to
something close to a bell-shaped curve
46
What do we Need?
LSL USL LSL USL
LSL USL
Off-Target, Low Variation
High Potential Defects
Good Cp but Bad Cpk
On Target
High Variation
High Potential Defects
No so good Cp and Cpk
On-Target, Low Variation
Low Potential Defects
Good Cp and Cpk
Variation reduction and process
centering create processes with
less potential for defects.
The concept of defect reduction
applies to ALL processes (not just
manufacturing)
47
Eliminate “Trivial Many”
Qualitative Evaluation
Technical Expertise
Graphical Methods
Screening Design of Experiments Identify “Vital Few”
Pareto Analysis
Hypothesis Testing
Regression
Design of Experiments
Quantify
Opportunity
% Reduction in Variation
Cost/ Benefit
Our Goal:
Identify the Key Factors (x’s)
48
Graph>Box plot
75%
50%
25%
Graph>Box plot
Without X values
DBP
Box plots help to see the data distribution
Day
DBP
10
9
10
4
99
94
109
104
99
94
Operator
DBP
10
9
10
4
99
94
Shift
DBP
10
9
10
4
99
94
49
Statistical Analysis
0.025
0.020
0.015
0.010
0.005
0.000
7
6
5
4
3
2
1
0
New Machine
Frequency
0.025
0.020
0.015
0.010
0.005
0.000
30
20
10
0
Machine 6 mths
Frequency
Is the factor really important?
Do we understand the impact for
the factor?
Has our improvement made an
impact
What is the true impact?
Hypothesis Testing
Regression Analysis
55
45
35
25
15
5
60
50
40
30
20
10
0
X
Y
R-Sq = 86.0 %
Y = 2.19469 + 0.918549X
95% PI
Regression
Regression Plot
Apply statistics to validate actions & improvements
50
A- Poor Control, Poor Process
B- Must control the Process better, Technology is fine
C- Process control is good, bad Process or technology
D- World Class
A B
C D
TECHNOLOGY
1 2 3 4 5 6
good
poor
2.5
2.0
1.5
1.0
0.5
CONTROL
Z shift
ZSt
poor
good
51
Measure
Characterize Process
Understand Process
Evaluate
Improve and Verify Process
Improve
Maintain New Process
Control
52
Improvement Phase
◼ Generate Improvement alternatives
◼ Validate Improvement
◼ Create “should be” process map
◼ Update FMEA
◼ Perform Cost/Benefit analysis
53
Improvement Phase
◼ Brain Storming
◼ Creativity
◼ Criteria Weighting
◼ Change Management tools
◼ DOE
◼ Cost/Benefit Analysis
54
Improvement Phase
◼ Project Review
◼ Validated pilot study
◼ Result of cost benefit analysis
◼ Plan of control phase
55
Design of Experiments (DOE)
◼ To estimate the effects of independent Variables on Responses.
◼ Terminology
➢ Factor – An independent variable
➢ Level – A value for the factor.
➢ Response - Outcome
X Y
PROCESS
56
Why use DoE ?
◼ Shift the average of a process.
◼ Reduce the variation.
◼ Shift average and reduce variation
x1 x2
57
DoE Techniques
◼ Full Factorial.
➢ 2
4
= 16 trials
➢ 2 is number of levels
➢ 4 is number of factors
• All combinations are tested.
• Fractional factorial can reduce number of trials from 16
to 8.
58
DoE Techniques
◼ Fractional Factorial
◼ Taguchi techniques
◼ Response Surface Methodologies
◼ Half fraction
59
1. Define Objective.
2. Select the Response (Y)
3. Select the factors (Xs)
4. Choose the factor levels
5. Select the Experimental Design
6. Run Experiment and Collect the Data
7. Analyze the data
8. Conclusions
9. Perform a confirmation run.
Steps in Planning an Experiment
60
“….No amount of experimentation can prove me
right; a single experiment can prove me wrong”.
“….Science can only ascertain what is, but not what
should be, and outside of its domain value judgments
of all kinds remain necessary.”
- Albert Einstein
61
Measure
Characterize Process
Understand Process
Evaluate
Improve and Verify Process
Improve
Maintain New Process
Control
62
Control Phase
◼ Develop control strategy
◼ Develop control plan
◼ Update procedure and training plan
◼ Monitor result
◼ Corrective action as needed
63
Control Phase
◼ Control chart
64
Control Phase
◼ Project Review
◼ Procedure
◼ Work instruction
◼ Full implementation
◼ Control chart of result
65
Control Phase
Control Phase Activities:
- Confirmation of Improvement
- Confirmation you solved the practical problem
- Benefit validation
- Buy into the Control plan
- Quality plan implementation
- Procedural changes
- System changes
- Statistical process control implementation
- “Mistake-proofing” the process
- Closure documentation
- Audit process
- Scoping next project
66
Control Phase
How to create a Control Plan:
1. Select Causal Variable(s). Proven vital few X(s)
2. Define Control Plan
- 5Ws for optimal ranges of X(s)
3. Validate Control Plan
- Observe Y
4. Implement/Document Control Plan
5. Audit Control Plan
6. Monitor Performance Metrics
67
Control Phase
Control Plan Tools:
1. Basic Six Sigma control methods.
- 7M Tools: Affinity diagram, tree diagram, process
decision program charts, matrix diagrams,
interrelationship diagrams, prioritization matrices,
activity network diagram.
2. Statistical Process Control (SPC)
- Used with various types of distributions
- Control Charts
•Attribute based (np, p, c, u). Variable based (X-R, X)
•Additional Variable based tools
-PRE-Control
-Common Cause Chart (Exponentially Balanced
Moving Average (EWMA))
68
Control Phase
Control Plan Tools:
1. Basic Six Sigma control methods.
- 7M Tools: Affinity diagram, tree diagram, process
decision program charts, matrix diagrams,
interrelationship diagrams, prioritization matrices,
activity network diagram.
2. Statistical Process Control (SPC)
- Used with various types of distributions
- Control Charts
•Attribute based (np, p, c, u). Variable based (X-R, X)
•Additional Variable based tools
-PRE-Control
-Common Cause Chart (Exponentially Balanced
Moving Average (EWMA))
69
How do we select the correct Control Chart:
Type
Data
Ind. Meas. or
subgroups
Normally dist.
data
Interest in
sudden mean
changes
Graph defects
of defectives
Oport. Area
constant from
sample to
sample
X, Rm
p, np
X - R
MA, EWMA or
CUSUM and
Rm
u
C, u
Size of the
subgroup
constant
p
If mean is big, X and
R are effective too
Ir neither n nor p are
small: X - R, X - Rm
are effective
More efective to
detect gradual
changes in long term
Use X - R chart with
modified rules
Variables
Attributes
Measurement
of subgroups
Individuals
Yes
No No
Yes
Yes
No
Yes
No
Defects Defectives
Control Phase
70
71
1. PRE-Control
•Algorithm for control based on tolerances
•Assumes production process with measurable/adjustable
quality characteristic that varies.
•Not equivalent to SPC. Process known to be capable of
meeting tolerance and assures that it does so.
•SPC used always before PRE-Control is applied.
•Process qualified by taking consecutive samples of individual
measurements, until 5 in a row fall in central zone, before 2
fall in cautionary. Action taken if 2 samples are in Cau. zone.
•Color coded
YELLOW
ZONE
GREEN
ZONE
YELLOW
ZONE
RED
ZONE
RED
ZONE
1/4 TOL. 1/2 TOL. 1/4 TOL.
Low
Tolerance
Limt
Tolerance
Limt
High
Reference
Line
PRE-Control
DIMENSION
NOMINAL
Reference
Line
PRE-Control
Additional Variable-Based Tools
72
2. Common Causes Chart (EWMA).
•Mean of automated manufacturing processes drifts because of
inherent process factor. SPC consideres process static.
•Drift produced by common causes.
•Implement a “Common Cause Chart”.
•No control limits. Action limits are placed on chart.
•Computed based on costs
•Violating action limit does not result in search for special
cause. Action taken to bring process closer to target value.
•Process mean tracked by EWMA
•Benefits:
•Used when process has inherent drift
•Provide forecast of where next process measurement will be.
•Used to develop procedures for dynamic process control
•Equation: EWMA = y^t +  (yt - y^t)  between 0 and 1
Additional Variable-Based Tools
73
• Improvement fully implemented and process re-baselined.
• Quality Plan and control procedures institutionalized.
• Owners of the process: Fully trained and running the process.
• Any required documentation done.
• History binder completed. Closure cover sheet signed.
• Score card developed on characteristics improved and reporting
method defined.
Project Closure
74
Customer-driven design of
processes with 6 capability.
Predicting design quality up
front.
Top down requirements
flowdown (CTQ flowdown)
matched by capability flowup.
Cross-functional integrated
design involvement.
Drives quality measurement
and predictability improvement
in early design phases.
Utilizes process capabilities to
make final design decisions.
Monitors process variances to
verify 6 customer
requirements are met.
What is Design for Six Sigma (DFSS)?
75
DFSS Methodology & Tools
Define Measure Analyze Design Verify
Under-
stand
customer
needs and
specify
CTQs
Develop
design
concepts
and high-
level
design
Develop
detailed
design and
control/test
plan
Test
design and
implement
full-scale
processes
Initiate,
scope,
and plan
the
project
DESIGN FOR SIX SIGMA
DELIVERABLES
T
eam
Charter
CTQs High-level
Design
Detailed
Design
Pilot
TOOLS
◼ Mgmt Leadership ◼ Customer Research ◼ FMEA/Errorproofing
◼ Project ◼ QFD ◼ Process Simulation
Management ◼ Benchmarking ◼ Design Scorecards
76
Design for Six Sigma
◼ Pre-DEFINE Phase
◼ Introduction to Six Sigma
◼ DFSS / New Product Introduction (NPI) Process
◼ Strategic vision
◼ Logical chain of product concepts
◼ Product evolution roadmap
77
◼ DEFINE Phase
◼ Establish Design Project
◼ Financial Analysis
◼ Project Management and Risk Assessment
Design for Six Sigma
78
◼ MEASURE Phase
◼ Establish CTQ’s and CTI’s
◼ Design problem documentation
◼ Design expectations
◼ Probability, Statistics, and Prediction
◼ MSA (Variables, Attribute and Data quality)
◼ Process Capability (Variables and Attribute)
◼ Risk Assessment
◼ Failure prediction
◼ Design Scorecard
Design for Six Sigma
79
◼ ANALYZE/HIGH-LEVEL DESIGN Phase
◼ Develop Design Alternatives
◼ Description of design options (alternatives)
◼ Analysis of design alternatives for technological barriers and
contradictions
◼ Develop High Level Design (VA/VE)
◼ Multi-Variable Analysis
◼ Confidence Intervals & Sampling
◼ Hypothesis Testing
◼ Evaluate High Level Design
◼ Failure analysis and prediction
Design for Six Sigma
80
◼ DETAIL DESIGN Phase
◼ Risk Assessment Failure analysis
◼ Taguchi Methods
◼ Tolerancing
◼ DOE with RSM
Design for Six Sigma
81
◼ DETAIL DESIGN Phase (cont’d)
◼ Reliability and Availability
◼ Non-Parametric Statistics
◼ Simulation with Monte Carlo Methods
◼ Design for Manufacturability/Assembly
◼ DVT/Testability
◼ Design Scorecard
Design for Six Sigma
82
◼ DETAIL DESIGN Phase
◼ Concurrent Engineering
◼ Software Engineering Tools
(CMM, CASE)
ENHANCED DESIGN FOR:
Commercial/Competitive Success
Manufacturability
Serviceability
Reliability
Availability
Information Management
Control
Design for Six Sigma
83
◼ VERIFY Phase
◼ Design for Control
◼ Design for Mistake Proofing
◼ Statistical Process Control (SPC)
◼ MVT
◼ Transition to Process Owners
◼ Logical sequence of new scenarios
◼ Strategic knowledge base and patent portfolio
◼ Targeted competitive intelligence
◼ New product evolutionary stages
◼ Project Closure
Design for Six Sigma
84
◼ VERIFY Phase -- continued
– Pilot Testing
– Full-Size Scale Up and Commercialization
– Design Information and Data Management
– Lean Manufacturing
Design for Six Sigma
85
Con-
sumer
Cue
Technical
Requirement
Preliminary
Drawing/Database
Identity
CTQs
Identify
Critical
Process
Obtain Data on
Similar Process
Calculate Z
values
Rev 0
Drawings
Stop
Adjust
process &
design
1st
piece
inspection
Prepilot
Data
Pilot data
Obtain data
Recheck
‘Z’ levels
Stop
Fix process
& design
Z<3
Z>= Design Intent
M.A.I.C
M.A.D
Six Sigma Design Process
86
PRODUCT
MANAGEMENT
OVERALL
GOAL OF
SOFTWARE
KNOWLEDGE OF
COMPETITORS
SUPERVISION
PRODUCT
DESIGN
PRODUCT
MANAGEMENT
PRODUCT
DESIGN
PRODUCT
MANAGEMENT
INNOVATION
OUTPUT
DIRECTORY
ORGANIZATION
INTUITIVE
ANSWERS
SUPPORT
METHODS TO MAKE
EASIER FOR USERS
CHARACTERISTICS:
• Organizing ideas into meaningful
categories
• Data Reduction. Large numbers of qual.
Inputs into major dimensions or categories.
AFFINITY DIAGRAM
87
MATRIX DIAGRAM
Patient
scheduled
Attendant
assigned
Attendant
arrives
Obtains
equipment
Transports
patient
Provide
Therapy
Notifies
of
return
Attendant
assigned
Attendant
arrives
Patient
returned
Arrive at scheduled time 5 5 5 5 1 5 0 0 0 0 0
Arrive with proper equipment 4 2 0 0 5 0 0 0 0 0 0
Dressed properly 4 0 0 0 0 0 0 0 0 0 0
Delivered via correct mode 2 3 0 0 1 0 0 0 0 0 0
Take back to room promptly 4 0 0 0 0 0 0 5 5 5 5
IMPORTANCE SCORE 39 25 25 27 25 0 20 20 20 20
RANK 1 3 3 2 3 7 6 6 6 6
5 = high importance, 3 = average importance, 1 = low importance
HOWS
WHATS
RELATIONSHIP
MATRIX
CUSTOMER
IMPORTANCE
MATRIX
88
Add
features
Make
existing
product
faster
Make
existing
product
easier
to
use
Leave
as-is
and
lower
price
Devote
resources
to
new
products
Increase
technical
support
budget
Out
arrows
In
arrows
Total
arrows
Strength
Add features 5 0 5 45
Make existing product faster 2 1 3 27
Make existing product easier to use 1 2 3 21
Leave as-is and lower price 0 3 3 21
Devote resources to new products 1 1 2 18
Increase technical support budget 0 2 2 18
(9) = Strong Influence
(3) = Some Influence
(1) = Weak/possible influence
Means row leads to column item
Means column leads to row item
COMBINATION ID/MATRIX DIAGRAM
CHARACTERISTICS:
•Uncover patterns in
cause and effect
relationships.
•Most detailed level in
tree diagram. Impact
on one another
evaluated.
89
Green Belts & Black Belts
◼ GE has very successfully instituted this program
◼ 4,000 trained Black Belts by YE 1997
◼ 10,000 trained Black Belts by YE 2000
◼ “You haven’t much future at GE unless they are selected to
become Black Belts” - Jack Welch
◼ Kodak has instituted this program
◼ CEO and COO driven process
◼ Training includes both written and oral exams
◼ Minimum requirements: a college education, basic statistics,
presentation skills, computer skills
◼ Other companies include:
◼ Allied Signal -Texas Instruments
◼ IBM - ABB
◼ Navistar - Citibank
90
Task
Time on
Consulting/
Training
Mentoring
Related
Projects
Green Belt Utilize
Statistical/Quality
technique
2%~5%
Find one new
green belt
2 / year
Black Belt
Lead use of
technique and
communicate new
ones
5%~10% Two green belts 4 / year
Master
Black Belt
Consulting/Mentor
ing/Training
80~100% Five Black Belts 10 / year
Green Belts & Black Belts
91
“It is reasonable to guess that the next
CEO of this company, decades down the
road, is probably a Six Sigma BB or MBB
somewhere in GE right now…”
Jack Welch
Ex-CEO, GE

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6 sigma overview (tai lieu trinh chieu tham khao)

  • 2. 2 Outline ◼ What is Six Sigma? ◼ Phases of Six Sigma ◼ Define ◼ Measure ◼ Evaluate / Analyze ◼ Improve ◼ Control ◼ Design for Six Sigma ◼ Green Belts & Black Belts
  • 3. 3 A Vision and Philosophical commitment to our consumers to offer the highest quality, lowest cost products A Metric that demonstrates quality levels at 99.9997% performance for products and processs A Benchmark of our product and process capability for comparison to ‘best in class’ A practical application of statistical Tools and Methods to help us measure, analyze, improve, and control our process What is Six Sigma?
  • 4. 4 What Six Sigma is Not ◼ Just about statistics ◼ A quality program ◼ Only for technical people ◼ Used when the solution is known ◼ Used for “firefighting”
  • 5. 5 1. Reduces dependency on “Tribal Knowledge” - Decisions based on facts and data rather than opinion 2. Attacks the high-hanging fruit (the hard stuff) - Eliminates chronic problems (common cause variation) - Improves customer satisfaction 3. Provides a disciplined approach to problem solving - Changes the company culture 4. Creates a competitive advantage (or disadvantage) 5. Improves profits! Why Companies Need Six Sigma
  • 6. 6 99.9% is already VERY GOOD But what could happen at a quality level of 99.9% (i.e., 1000 ppm), in our everyday lives (about 4.6)? • More than 3000 newborns accidentally falling from the hands of nurses or doctors each year • 4000 wrong medical prescriptions each year • 400 letters per hour which never arrive at their destination • Two long or short landings at American airports each day How good is good enough?
  • 7. 7 How can we get these results? ◼ 13 wrong drug prescriptions per year ◼ 10 newborn babies dropped by doctors/nurses per year ◼ Two short or long landings per year in all the airports in the U.S. ◼ One lost article of mail per hour
  • 8. 8 Six Sigma as a Metric Sigma =  = Deviation ( Square root of variance ) -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 Axis graduated in Sigma 68.27 % 95.45 % 99.73 % 99.9937 % 99.999943 % 99.9999998 % result: 317300 ppm outside (deviation) 45500 ppm 2700 ppm 63 ppm 0.57 ppm 0.002 ppm between + / - 1 between + / - 2 between + / - 3 between + / - 4 between + / - 5 between + / - 6 
  • 9. 9 Effect of 1.5 Sigma Process Shift
  • 10. 10 3 Sigma Vs. 6 Sigma The 3 sigma Company The 6 sigma Company ◼ Spends 15~25% of sales dollars on cost of failure ◼ Spends 5% of sales dollars on cost of failure ◼ Relies on inspection to find defects ◼ Relies on capable process that don’t produce defects ◼ Does not have a disciplined approach to gather and analyze data ◼ Use Measure, Analyze, Improve, Control and Measure, Analyze, Design ◼ Benchmarks themselves against their competition ◼ Benchmarks themselves against the best in the world ◼ Believes 99% is good enough ◼ Believes 99% is unacceptable ◼ Define CTQs internally ◼ Defines CTQs externally
  • 11. 11 Sigma and PPM 2 3 4 5 6 308,537 66,811 6,210 233 3.4  PPM Process Capability Defects per Million Opportunities Focusing on  requires thorough process understanding and breakthrough thinking 0 10 20 30 40 50 60 70 80 1 2 3 4 5 6 Process Sigma % Change 0 100000 200000 300000 400000 500000 600000 700000 800000 PPM From 1 to 2 From 3 to 4 From 4 to 5 From 5 to 6 % Change PPM
  • 12. 12 Motorola ROI 1987-1994 • Reduced in-process defect levels by a factor of 200. • Reduced manufacturing costs by $1.4 billion. • Increased employee production on a dollar basis by 126%. • Increased stockholders share value fourfold. AlliedSignal ROI 1992-1996 • $1.4 Billion cost reduction. • 14% growth per quarter. • 520% price/share growth. • Reduced new product introduction time by 16%. • 24% bill/cycle reduction. Six Sigma ROI
  • 13. 13 General Electric ROI 1995-1998 • Company wide savings of over $1 Billion. • Estimated annual savings to be $6.6 Billion by the year 2000. Six Sigma ROI
  • 14. 14 Six Sigma as a Philosophy Internal & External Failure Costs Prevention & Appraisal Costs Old Belief 4 Costs Internal & External Failure Costs Prevention & Appraisal Costs New Belief Costs 4 5 6 Quality Quality Old Belief High Quality = High Cost New Belief High Quality = Low Cost  is a measure of how much variation exists in a process
  • 15. 15 “The fact is, there is more reality with this [Six Sigma] than anything that has come down in a long time in business. The more you get involved with it, the more you’re convinced.” Larry Bossidy CEO, Honeywell
  • 16. 16 Outlook Short term Long term Analysis Point estimate Variability Tolerance Worst case design RMS Process Tweaking SPC Problem Fixing Preventing Behavior Reactive Proactive Reasoning Experience Statistics Aim Organization Customer Direction Seat of Pants Benchmarking Improvement Automation Optimization Issue Classical Six Sigma Six Sigma as a Strategic Tool
  • 17. 17 Six Sigma Tools Process Mapping Tolerance Analysis Structure Tree Components Search Pareto Analysis HypothesisTesting Gauge R & R Regression RationalSubgrouping DOE Baselining SPC
  • 18. 18 ➢ Project defined in Business Terms ➢ Cross Functional Team Involvement ➢ DMAIC Problem Strategy used ➢ Qualitative and Statistical tools used ➢ Sustained Business Results Achieved What Does Six Sigma Look Like?
  • 19. 19 Six Sigma Principles ◼ Customer Focus ◼ Leadership ◼ Innovative and Proactive ◼ Boundary-less ◼ World Class Quality ◼ Fact Driven ◼ Process Management
  • 20. 20 Breakthrough Strategy Characterization Phase 2: Measure Phase 3: Analyze Optimization Phase 4: Improve Phase 5: Control Projects are worked through these 5 main phases of the Six Sigma methodology. Phase 1: Define Problem Solving Methodology
  • 21. 21 Project Charter ◼ Business Case ◼ Problem Statement ◼ Goal Statement ◼ Team Members ◼ Team Role & Responsibility ◼ Action plan VS. budget
  • 22. 22 Define Phase ◼ Define Process ◼ Define Customer requirement ◼ Prioritize Customer requirement
  • 23. 23 Define Phase ◼ SIPOC Model Kano Analysis ◼ Customer Survey CTQ Diagram ◼ Customer Requirement Analysis ◼ QFD Literature Review ◼ Standard / Regulation Review
  • 24. 24 Define Phase ◼ Project Review ◼ Project Charter ◼ Business Case ◼ Problem Statement ◼ Goal Statement ◼ Scope of process ◼ Prioritized customer requirement
  • 25. 25 Reduce Complaints (int./ext.) Reduce Cost Reduce Defects Problem Definitions need to be based on quantitative facts supported by analytical data. What are the Goals? ✓ What do you want to improve? ✓ What is your ‘Y’? Problem Definition
  • 26. 26 To understand where you want to be, you need to know how to get there.v Map the Process Measure the Process Identify the variables - ‘x’ Understand the Problem - ’Y’ = function of variables -’x’ Y=f(x)
  • 27. 27 Measure Characterize Process Understand Process Evaluate Improve and Verify Process Improve Maintain New Process Control
  • 28. 28 Define Problem Understand Process Collect Data Process Performance Process Capability - Cp/Cpk - Run Charts Understand Problem (Control or Capability) Data Types - Defectives - Defects - Continuous Measurement Systems Evaluation (MSE) Define Process- Process Mapping Historical Performance Brainstorm Potential Defect Causes Defect Statement Project Goals Measure Phase
  • 29. 29 Measure Phase ◼ Identify measurement and variation ◼ Determine data type ◼ Develop data collection plan ◼ Perform measurement system analysis ◼ Perform data collection ◼ Perform capability analysis
  • 30. 30 Measure Phase ◼ Effectiveness of existing process ◼ Efficiency of existing process ◼ Calculate Sigma Level ◼ Calculate Cost of poor quality
  • 31. 31 Measure Phase ◼ SIPOC-RM ◼ CTQ-R ◼ Check Sheet ◼ MSA ◼ Basic Statistics Graph Role Throughput Yield Process Capability DPMO COPQ Calculation
  • 32. 32 Measure Phase ◼ Project Review ◼ Customer satisfaction ◼ Effectiveness of process ◼ Efficiency of process ◼ Base line sigma (Yield, DPMO, CPk) ◼ Cost of poor quality
  • 33. 33 Baselining: Quantifying the goodness (or badness!) of the current process, before ANY improvements are made, using sample data. The key to baselining is collecting representative sample data Sampling Plan - Size of Subgroups - Number of Subgroups - Take as many “X” as possible into consideration Measure Phase
  • 34. 34 How do we know our process? Process Map Historical Data Fishbone
  • 35. 35 RATIONAL SUBROUPINGAllows samples to be taken that include only white noise, within the samples. Black noise occurs between the samples. RATIONAL SUBGROUPS Minimize variation within subgroups Maximize variation between subgroups TIME PROCESS RESPONSE WHITE NOISE (Common Cause Variation) BLACK NOISE (Signal)
  • 36. 36 Visualizing the Causes  st + shift = total Time 1 Time 2 Time 3 Time 4 Within Group •Called short term (st) •Our potential – the best we can be •The s reported by all 6 sigmacompanies •The trivial many
  • 37. 37 Visualizing the Causes Between Groups  st + shift = total Time 1 Time 2 Time 3 Time 4 •Called shift (truly a measurement in sigmas of how far the mean has shifted) •Indicates our process control •The vital few
  • 38. 38 Assignable Cause ◼ Outside influences ◼ Black noise ◼ Potentially controllable ◼ How the process is actually performing over time Fishbone
  • 39. 39 Common Cause Variation ◼ Variation present in every process ◼ Not controllable ◼ The best the process can be within the present technology
  • 40. 40 2 Total = 2 Part-Part + 2 R&R Recommendation: Resolution  10% of tolerance to measure Gauge R&R  20% of tolerance to measure • Repeatability (Equipmentvariation) Variation observed with one measurement device when used several times by one operator while measuring the identical characteristic on the same part. • Reproducibility (Appraised variation) Variation Obtained from different operators using the same device when measuring the identical characteristic on the same part. •Stabilityor Drift Total variation in the measurement obtained with a measurement obtained on the same master or reference value when measuring the same characteristic, over an extending time period. Gauge R&R Part-Part R&R
  • 41. 41 Measure Characterize Process Understand Process Evaluate Improve and Verify Process Improve Maintain New Process Control
  • 42. 42 Evaluate / Analysis Phase ◼ Data Analysis ◼ Process Analysis ◼ Formulate Hypothesis ◼ Test Hypothesis
  • 43. 43 Evaluate / Analysis Phase ◼ Run chart Histogram ◼ Pareto chart Scatter Diagram ◼ Relation Diagram CE Diagram ◼ Process Analysis ◼ Hypothesis Testing Chi-square T-Test ANOVA Correlation Regression
  • 44. 44 Evaluate / Analysis Phase ◼ Project Review ◼ Validated root cause statement
  • 45. 45 In many cases, the data sample can be transformed so that it is approximately normal. For example, square roots, logarithms, and reciprocals often take a positively skewed distribution and convert it to something close to a bell-shaped curve
  • 46. 46 What do we Need? LSL USL LSL USL LSL USL Off-Target, Low Variation High Potential Defects Good Cp but Bad Cpk On Target High Variation High Potential Defects No so good Cp and Cpk On-Target, Low Variation Low Potential Defects Good Cp and Cpk Variation reduction and process centering create processes with less potential for defects. The concept of defect reduction applies to ALL processes (not just manufacturing)
  • 47. 47 Eliminate “Trivial Many” Qualitative Evaluation Technical Expertise Graphical Methods Screening Design of Experiments Identify “Vital Few” Pareto Analysis Hypothesis Testing Regression Design of Experiments Quantify Opportunity % Reduction in Variation Cost/ Benefit Our Goal: Identify the Key Factors (x’s)
  • 48. 48 Graph>Box plot 75% 50% 25% Graph>Box plot Without X values DBP Box plots help to see the data distribution Day DBP 10 9 10 4 99 94 109 104 99 94 Operator DBP 10 9 10 4 99 94 Shift DBP 10 9 10 4 99 94
  • 49. 49 Statistical Analysis 0.025 0.020 0.015 0.010 0.005 0.000 7 6 5 4 3 2 1 0 New Machine Frequency 0.025 0.020 0.015 0.010 0.005 0.000 30 20 10 0 Machine 6 mths Frequency Is the factor really important? Do we understand the impact for the factor? Has our improvement made an impact What is the true impact? Hypothesis Testing Regression Analysis 55 45 35 25 15 5 60 50 40 30 20 10 0 X Y R-Sq = 86.0 % Y = 2.19469 + 0.918549X 95% PI Regression Regression Plot Apply statistics to validate actions & improvements
  • 50. 50 A- Poor Control, Poor Process B- Must control the Process better, Technology is fine C- Process control is good, bad Process or technology D- World Class A B C D TECHNOLOGY 1 2 3 4 5 6 good poor 2.5 2.0 1.5 1.0 0.5 CONTROL Z shift ZSt poor good
  • 51. 51 Measure Characterize Process Understand Process Evaluate Improve and Verify Process Improve Maintain New Process Control
  • 52. 52 Improvement Phase ◼ Generate Improvement alternatives ◼ Validate Improvement ◼ Create “should be” process map ◼ Update FMEA ◼ Perform Cost/Benefit analysis
  • 53. 53 Improvement Phase ◼ Brain Storming ◼ Creativity ◼ Criteria Weighting ◼ Change Management tools ◼ DOE ◼ Cost/Benefit Analysis
  • 54. 54 Improvement Phase ◼ Project Review ◼ Validated pilot study ◼ Result of cost benefit analysis ◼ Plan of control phase
  • 55. 55 Design of Experiments (DOE) ◼ To estimate the effects of independent Variables on Responses. ◼ Terminology ➢ Factor – An independent variable ➢ Level – A value for the factor. ➢ Response - Outcome X Y PROCESS
  • 56. 56 Why use DoE ? ◼ Shift the average of a process. ◼ Reduce the variation. ◼ Shift average and reduce variation x1 x2
  • 57. 57 DoE Techniques ◼ Full Factorial. ➢ 2 4 = 16 trials ➢ 2 is number of levels ➢ 4 is number of factors • All combinations are tested. • Fractional factorial can reduce number of trials from 16 to 8.
  • 58. 58 DoE Techniques ◼ Fractional Factorial ◼ Taguchi techniques ◼ Response Surface Methodologies ◼ Half fraction
  • 59. 59 1. Define Objective. 2. Select the Response (Y) 3. Select the factors (Xs) 4. Choose the factor levels 5. Select the Experimental Design 6. Run Experiment and Collect the Data 7. Analyze the data 8. Conclusions 9. Perform a confirmation run. Steps in Planning an Experiment
  • 60. 60 “….No amount of experimentation can prove me right; a single experiment can prove me wrong”. “….Science can only ascertain what is, but not what should be, and outside of its domain value judgments of all kinds remain necessary.” - Albert Einstein
  • 61. 61 Measure Characterize Process Understand Process Evaluate Improve and Verify Process Improve Maintain New Process Control
  • 62. 62 Control Phase ◼ Develop control strategy ◼ Develop control plan ◼ Update procedure and training plan ◼ Monitor result ◼ Corrective action as needed
  • 64. 64 Control Phase ◼ Project Review ◼ Procedure ◼ Work instruction ◼ Full implementation ◼ Control chart of result
  • 65. 65 Control Phase Control Phase Activities: - Confirmation of Improvement - Confirmation you solved the practical problem - Benefit validation - Buy into the Control plan - Quality plan implementation - Procedural changes - System changes - Statistical process control implementation - “Mistake-proofing” the process - Closure documentation - Audit process - Scoping next project
  • 66. 66 Control Phase How to create a Control Plan: 1. Select Causal Variable(s). Proven vital few X(s) 2. Define Control Plan - 5Ws for optimal ranges of X(s) 3. Validate Control Plan - Observe Y 4. Implement/Document Control Plan 5. Audit Control Plan 6. Monitor Performance Metrics
  • 67. 67 Control Phase Control Plan Tools: 1. Basic Six Sigma control methods. - 7M Tools: Affinity diagram, tree diagram, process decision program charts, matrix diagrams, interrelationship diagrams, prioritization matrices, activity network diagram. 2. Statistical Process Control (SPC) - Used with various types of distributions - Control Charts •Attribute based (np, p, c, u). Variable based (X-R, X) •Additional Variable based tools -PRE-Control -Common Cause Chart (Exponentially Balanced Moving Average (EWMA))
  • 68. 68 Control Phase Control Plan Tools: 1. Basic Six Sigma control methods. - 7M Tools: Affinity diagram, tree diagram, process decision program charts, matrix diagrams, interrelationship diagrams, prioritization matrices, activity network diagram. 2. Statistical Process Control (SPC) - Used with various types of distributions - Control Charts •Attribute based (np, p, c, u). Variable based (X-R, X) •Additional Variable based tools -PRE-Control -Common Cause Chart (Exponentially Balanced Moving Average (EWMA))
  • 69. 69 How do we select the correct Control Chart: Type Data Ind. Meas. or subgroups Normally dist. data Interest in sudden mean changes Graph defects of defectives Oport. Area constant from sample to sample X, Rm p, np X - R MA, EWMA or CUSUM and Rm u C, u Size of the subgroup constant p If mean is big, X and R are effective too Ir neither n nor p are small: X - R, X - Rm are effective More efective to detect gradual changes in long term Use X - R chart with modified rules Variables Attributes Measurement of subgroups Individuals Yes No No Yes Yes No Yes No Defects Defectives Control Phase
  • 70. 70
  • 71. 71 1. PRE-Control •Algorithm for control based on tolerances •Assumes production process with measurable/adjustable quality characteristic that varies. •Not equivalent to SPC. Process known to be capable of meeting tolerance and assures that it does so. •SPC used always before PRE-Control is applied. •Process qualified by taking consecutive samples of individual measurements, until 5 in a row fall in central zone, before 2 fall in cautionary. Action taken if 2 samples are in Cau. zone. •Color coded YELLOW ZONE GREEN ZONE YELLOW ZONE RED ZONE RED ZONE 1/4 TOL. 1/2 TOL. 1/4 TOL. Low Tolerance Limt Tolerance Limt High Reference Line PRE-Control DIMENSION NOMINAL Reference Line PRE-Control Additional Variable-Based Tools
  • 72. 72 2. Common Causes Chart (EWMA). •Mean of automated manufacturing processes drifts because of inherent process factor. SPC consideres process static. •Drift produced by common causes. •Implement a “Common Cause Chart”. •No control limits. Action limits are placed on chart. •Computed based on costs •Violating action limit does not result in search for special cause. Action taken to bring process closer to target value. •Process mean tracked by EWMA •Benefits: •Used when process has inherent drift •Provide forecast of where next process measurement will be. •Used to develop procedures for dynamic process control •Equation: EWMA = y^t +  (yt - y^t)  between 0 and 1 Additional Variable-Based Tools
  • 73. 73 • Improvement fully implemented and process re-baselined. • Quality Plan and control procedures institutionalized. • Owners of the process: Fully trained and running the process. • Any required documentation done. • History binder completed. Closure cover sheet signed. • Score card developed on characteristics improved and reporting method defined. Project Closure
  • 74. 74 Customer-driven design of processes with 6 capability. Predicting design quality up front. Top down requirements flowdown (CTQ flowdown) matched by capability flowup. Cross-functional integrated design involvement. Drives quality measurement and predictability improvement in early design phases. Utilizes process capabilities to make final design decisions. Monitors process variances to verify 6 customer requirements are met. What is Design for Six Sigma (DFSS)?
  • 75. 75 DFSS Methodology & Tools Define Measure Analyze Design Verify Under- stand customer needs and specify CTQs Develop design concepts and high- level design Develop detailed design and control/test plan Test design and implement full-scale processes Initiate, scope, and plan the project DESIGN FOR SIX SIGMA DELIVERABLES T eam Charter CTQs High-level Design Detailed Design Pilot TOOLS ◼ Mgmt Leadership ◼ Customer Research ◼ FMEA/Errorproofing ◼ Project ◼ QFD ◼ Process Simulation Management ◼ Benchmarking ◼ Design Scorecards
  • 76. 76 Design for Six Sigma ◼ Pre-DEFINE Phase ◼ Introduction to Six Sigma ◼ DFSS / New Product Introduction (NPI) Process ◼ Strategic vision ◼ Logical chain of product concepts ◼ Product evolution roadmap
  • 77. 77 ◼ DEFINE Phase ◼ Establish Design Project ◼ Financial Analysis ◼ Project Management and Risk Assessment Design for Six Sigma
  • 78. 78 ◼ MEASURE Phase ◼ Establish CTQ’s and CTI’s ◼ Design problem documentation ◼ Design expectations ◼ Probability, Statistics, and Prediction ◼ MSA (Variables, Attribute and Data quality) ◼ Process Capability (Variables and Attribute) ◼ Risk Assessment ◼ Failure prediction ◼ Design Scorecard Design for Six Sigma
  • 79. 79 ◼ ANALYZE/HIGH-LEVEL DESIGN Phase ◼ Develop Design Alternatives ◼ Description of design options (alternatives) ◼ Analysis of design alternatives for technological barriers and contradictions ◼ Develop High Level Design (VA/VE) ◼ Multi-Variable Analysis ◼ Confidence Intervals & Sampling ◼ Hypothesis Testing ◼ Evaluate High Level Design ◼ Failure analysis and prediction Design for Six Sigma
  • 80. 80 ◼ DETAIL DESIGN Phase ◼ Risk Assessment Failure analysis ◼ Taguchi Methods ◼ Tolerancing ◼ DOE with RSM Design for Six Sigma
  • 81. 81 ◼ DETAIL DESIGN Phase (cont’d) ◼ Reliability and Availability ◼ Non-Parametric Statistics ◼ Simulation with Monte Carlo Methods ◼ Design for Manufacturability/Assembly ◼ DVT/Testability ◼ Design Scorecard Design for Six Sigma
  • 82. 82 ◼ DETAIL DESIGN Phase ◼ Concurrent Engineering ◼ Software Engineering Tools (CMM, CASE) ENHANCED DESIGN FOR: Commercial/Competitive Success Manufacturability Serviceability Reliability Availability Information Management Control Design for Six Sigma
  • 83. 83 ◼ VERIFY Phase ◼ Design for Control ◼ Design for Mistake Proofing ◼ Statistical Process Control (SPC) ◼ MVT ◼ Transition to Process Owners ◼ Logical sequence of new scenarios ◼ Strategic knowledge base and patent portfolio ◼ Targeted competitive intelligence ◼ New product evolutionary stages ◼ Project Closure Design for Six Sigma
  • 84. 84 ◼ VERIFY Phase -- continued – Pilot Testing – Full-Size Scale Up and Commercialization – Design Information and Data Management – Lean Manufacturing Design for Six Sigma
  • 85. 85 Con- sumer Cue Technical Requirement Preliminary Drawing/Database Identity CTQs Identify Critical Process Obtain Data on Similar Process Calculate Z values Rev 0 Drawings Stop Adjust process & design 1st piece inspection Prepilot Data Pilot data Obtain data Recheck ‘Z’ levels Stop Fix process & design Z<3 Z>= Design Intent M.A.I.C M.A.D Six Sigma Design Process
  • 86. 86 PRODUCT MANAGEMENT OVERALL GOAL OF SOFTWARE KNOWLEDGE OF COMPETITORS SUPERVISION PRODUCT DESIGN PRODUCT MANAGEMENT PRODUCT DESIGN PRODUCT MANAGEMENT INNOVATION OUTPUT DIRECTORY ORGANIZATION INTUITIVE ANSWERS SUPPORT METHODS TO MAKE EASIER FOR USERS CHARACTERISTICS: • Organizing ideas into meaningful categories • Data Reduction. Large numbers of qual. Inputs into major dimensions or categories. AFFINITY DIAGRAM
  • 87. 87 MATRIX DIAGRAM Patient scheduled Attendant assigned Attendant arrives Obtains equipment Transports patient Provide Therapy Notifies of return Attendant assigned Attendant arrives Patient returned Arrive at scheduled time 5 5 5 5 1 5 0 0 0 0 0 Arrive with proper equipment 4 2 0 0 5 0 0 0 0 0 0 Dressed properly 4 0 0 0 0 0 0 0 0 0 0 Delivered via correct mode 2 3 0 0 1 0 0 0 0 0 0 Take back to room promptly 4 0 0 0 0 0 0 5 5 5 5 IMPORTANCE SCORE 39 25 25 27 25 0 20 20 20 20 RANK 1 3 3 2 3 7 6 6 6 6 5 = high importance, 3 = average importance, 1 = low importance HOWS WHATS RELATIONSHIP MATRIX CUSTOMER IMPORTANCE MATRIX
  • 88. 88 Add features Make existing product faster Make existing product easier to use Leave as-is and lower price Devote resources to new products Increase technical support budget Out arrows In arrows Total arrows Strength Add features 5 0 5 45 Make existing product faster 2 1 3 27 Make existing product easier to use 1 2 3 21 Leave as-is and lower price 0 3 3 21 Devote resources to new products 1 1 2 18 Increase technical support budget 0 2 2 18 (9) = Strong Influence (3) = Some Influence (1) = Weak/possible influence Means row leads to column item Means column leads to row item COMBINATION ID/MATRIX DIAGRAM CHARACTERISTICS: •Uncover patterns in cause and effect relationships. •Most detailed level in tree diagram. Impact on one another evaluated.
  • 89. 89 Green Belts & Black Belts ◼ GE has very successfully instituted this program ◼ 4,000 trained Black Belts by YE 1997 ◼ 10,000 trained Black Belts by YE 2000 ◼ “You haven’t much future at GE unless they are selected to become Black Belts” - Jack Welch ◼ Kodak has instituted this program ◼ CEO and COO driven process ◼ Training includes both written and oral exams ◼ Minimum requirements: a college education, basic statistics, presentation skills, computer skills ◼ Other companies include: ◼ Allied Signal -Texas Instruments ◼ IBM - ABB ◼ Navistar - Citibank
  • 90. 90 Task Time on Consulting/ Training Mentoring Related Projects Green Belt Utilize Statistical/Quality technique 2%~5% Find one new green belt 2 / year Black Belt Lead use of technique and communicate new ones 5%~10% Two green belts 4 / year Master Black Belt Consulting/Mentor ing/Training 80~100% Five Black Belts 10 / year Green Belts & Black Belts
  • 91. 91 “It is reasonable to guess that the next CEO of this company, decades down the road, is probably a Six Sigma BB or MBB somewhere in GE right now…” Jack Welch Ex-CEO, GE