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Page 1: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

1© 2010 Nkumbwa™. All Rights Reserved.

Six Sigma Strategy & ManagementSix Sigma Strategy & Management

Sir Eng R. L. Nkumbwa™Sir Eng R. L. Nkumbwa™www.nkumbwa.weebly.comwww.nkumbwa.weebly.com

Page 2: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

2© 2010 Nkumbwa™. All Rights Reserved.

OutlineOutline

What is Six Sigma?What is Six Sigma? Phases of Six SigmaPhases of Six Sigma

DefineDefine MeasureMeasure Evaluate / AnalyzeEvaluate / Analyze ImproveImprove ControlControl

Design for Six SigmaDesign for Six Sigma Green Belts & Black BeltsGreen Belts & Black Belts

Page 3: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

3© 2010 Nkumbwa™. All Rights Reserved.

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?What is Six Sigma?

Page 4: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

4© 2010 Nkumbwa™. All Rights Reserved.

What Six Sigma What Six Sigma is Notis Not

Just about statisticsJust about statistics A quality programA quality program Only for technical peopleOnly for technical people Used when the solution is knownUsed when the solution is known Used for “firefighting”Used for “firefighting”

Page 5: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

5© 2010 Nkumbwa™. All Rights Reserved.

1.1. Reduces dependency on “Tribal Knowledge”Reduces dependency on “Tribal Knowledge”- Decisions based on facts and data rather than opinion- Decisions based on facts and data rather than opinion

2.2. Attacks the high-hanging fruit (the hard stuff)Attacks the high-hanging fruit (the hard stuff)- Eliminates chronic problems (common cause variation)- Eliminates chronic problems (common cause variation)- Improves customer satisfaction- Improves customer satisfaction

3.3. Provides a disciplined approach to problem solvingProvides a disciplined approach to problem solving- Changes the company culture- Changes the company culture

4.4. Creates a competitive advantage (or disadvantage)Creates a competitive advantage (or disadvantage)

5.5. Improves profits!Improves profits!

Why Companies Need Six SigmaWhy Companies Need Six Sigma

Page 6: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

6© 2010 Nkumbwa™. All Rights Reserved.

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 30003000 newborns accidentally falling

from the hands of nurses or doctors each year

• 40004000 wrong medical prescriptions each year

• 400400 letters per hour which never arrive at their destination

• Two long or short landings at American airports each dayday

How good is good enough?How good is good enough?

Page 7: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

7© 2010 Nkumbwa™. All Rights Reserved.

How can we get these results?How can we get these results?

1313 wrong drug prescriptions per year wrong drug prescriptions per year 1010 newborn babies dropped by doctors/nurses per year newborn babies dropped by doctors/nurses per year Two short or long landings Two short or long landings per yearper year in all the airports in the U.S. in all the airports in the U.S. OneOne lost article of mail per hour lost article of mail per hour

Page 8: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

8© 2010 Nkumbwa™. All Rights Reserved.

Six Sigma as a MetricSix 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 + / - 1between + / - 2between + / - 3between + / - 4between + / - 5

between + / - 6

Page 9: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

9© 2010 Nkumbwa™. All Rights Reserved.

Effect of 1.5 Sigma Process ShiftEffect of 1.5 Sigma Process Shift

Page 10: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

10© 2010 Nkumbwa™. All Rights Reserved.

3 Sigma Vs. 6 Sigma3 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

Page 11: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

11© 2010 Nkumbwa™. All Rights Reserved.

Sigma and PPMSigma 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 thinkingFocusing 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

% C

ha

ng

e

0

100000

200000

300000

400000

500000

600000

700000

800000

PP

M

From 1 to 2

From 3 to 4

From 4 to 5

From 5 to 6

% ChangePPM

Page 12: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

12© 2010 Nkumbwa™. All Rights Reserved.

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 ROISix Sigma ROI

Page 13: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

13© 2010 Nkumbwa™. All Rights Reserved.

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 ROISix Sigma ROI

Page 14: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

14© 2010 Nkumbwa™. All Rights Reserved.

Six Sigma as a PhilosophySix Sigma as a Philosophy

Internal &ExternalFailure Costs

Prevention &Appraisal

Costs

Old Belief4C

ost

s

Internal &ExternalFailure Costs

Prevention &Appraisal

Costs

New BeliefCo

sts

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

Page 15: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

15© 2010 Nkumbwa™. All Rights Reserved.

““The fact is, there is more reality with this The fact is, there is more reality with this [Six Sigma] than anything that has come [Six Sigma] than anything that has come

down in a long time in business. The more down in a long time in business. The more you get involved with it, the more you’re you get involved with it, the more you’re

convinced.”convinced.”

Larry BossidyLarry Bossidy

CEO, HoneywellCEO, Honeywell

Page 16: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

16© 2010 Nkumbwa™. All Rights Reserved.

OutlookOutlook Short termShort term Long termLong term

AnalysisAnalysis Point estimatePoint estimate VariabilityVariability

ToleranceTolerance Worst case designWorst case design RMSRMS

ProcessProcess TweakingTweaking SPCSPC

ProblemProblem FixingFixing PreventingPreventing

BehaviorBehavior ReactiveReactive ProactiveProactive

ReasoningReasoning ExperienceExperience StatisticsStatistics

AimAim OrganizationOrganization CustomerCustomer

DirectionDirection Seat of PantsSeat of Pants BenchmarkingBenchmarking

ImprovementImprovement AutomationAutomation OptimizationOptimization

IssueIssue ClassicalClassical Six Sigma Six Sigma

Six Sigma as a Strategic ToolSix Sigma as a Strategic Tool

Page 17: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

17© 2010 Nkumbwa™. All Rights Reserved.

Six Sigma ToolsSix Sigma Tools

Process MappingProcess Mapping Tolerance AnalysisTolerance Analysis

Structure TreeStructure Tree Components SearchComponents Search

Pareto AnalysisPareto Analysis Hypothesis TestingHypothesis Testing

Gauge R & RGauge R & R RegressionRegression

Rational SubgroupingRational Subgrouping DOEDOE

BaseliningBaselining SPCSPC

Page 18: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

18© 2010 Nkumbwa™. All Rights Reserved.

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?What Does Six Sigma Look Like?

Page 19: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

19© 2010 Nkumbwa™. All Rights Reserved.

Six Sigma PrinciplesSix Sigma Principles

Customer FocusCustomer Focus LeadershipLeadership Innovative and ProactiveInnovative and Proactive Boundary-lessBoundary-less World Class QualityWorld Class Quality Fact DrivenFact Driven Process ManagementProcess Management

Page 20: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

20© 2010 Nkumbwa™. All Rights Reserved.

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 MethodologyProblem Solving Methodology

Page 21: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

21© 2010 Nkumbwa™. All Rights Reserved.

Project CharterProject Charter

Business CaseBusiness Case Problem StatementProblem Statement Goal StatementGoal Statement Team MembersTeam Members Team Role & ResponsibilityTeam Role & Responsibility Action plan VS. budgetAction plan VS. budget

Page 22: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

22© 2010 Nkumbwa™. All Rights Reserved.

Define PhaseDefine Phase

Define ProcessDefine Process Define Customer requirementDefine Customer requirement Prioritize Customer requirementPrioritize Customer requirement

Page 23: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

23© 2010 Nkumbwa™. All Rights Reserved.

Define PhaseDefine Phase

SIPOC ModelSIPOC Model Kano AnalysisKano Analysis Customer SurveyCustomer Survey CTQ DiagramCTQ Diagram Customer Requirement AnalysisCustomer Requirement Analysis QFD QFD Literature ReviewLiterature Review Standard / Regulation ReviewStandard / Regulation Review

Page 24: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

24© 2010 Nkumbwa™. All Rights Reserved.

Define PhaseDefine Phase

Project ReviewProject Review Project CharterProject Charter Business CaseBusiness Case Problem StatementProblem Statement Goal StatementGoal Statement Scope of processScope of process Prioritized customer requirementPrioritized customer requirement

Page 25: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

25© 2010 Nkumbwa™. All Rights Reserved.

ReduceComplaints

(int./ext.)

ReduceCost

ReduceDefects

Problem Definitions need to be based onquantitative facts supported by analytical data.

Problem Definitions need to be based onquantitative facts supported by analytical data.

What are the Goals?

What do you want to improve? What is your ‘Y’?

Problem Definition

Page 26: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

26© 2010 Nkumbwa™. All Rights Reserved.

To understand where you want to be, you need to know how to get there.v

To understand where you want to be, you need to know how to get there.v

Map the ProcessMap the Process

Measure the ProcessMeasure the Process

Identify the variables - ‘x’Identify the variables - ‘x’

Understand the Problem -’Y’ = function of variables -’x’

Y=f(x)

Understand the Problem -’Y’ = function of variables -’x’

Y=f(x)

Page 27: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

27© 2010 Nkumbwa™. All Rights Reserved.

MeasureMeasureCharacterize Process

Understand ProcessEvaluateEvaluate

Improve and Verify ProcessImproveImprove

Maintain New ProcessControlControl

Page 28: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

28© 2010 Nkumbwa™. All Rights Reserved.

DefineProblem

DefineProblem

UnderstandProcess

UnderstandProcess

CollectData

CollectData

ProcessPerformance

ProcessPerformance

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

Page 29: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

29© 2010 Nkumbwa™. All Rights Reserved.

Measure PhaseMeasure Phase

Identify measurement and variationIdentify measurement and variation Determine data typeDetermine data type Develop data collection planDevelop data collection plan Perform measurement system analysisPerform measurement system analysis Perform data collectionPerform data collection Perform capability analysisPerform capability analysis

Page 30: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

30© 2010 Nkumbwa™. All Rights Reserved.

Measure PhaseMeasure Phase

Effectiveness of existing processEffectiveness of existing process Efficiency of existing processEfficiency of existing process Calculate Sigma LevelCalculate Sigma Level Calculate Cost of poor qualityCalculate Cost of poor quality

Page 31: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

31© 2010 Nkumbwa™. All Rights Reserved.

Measure PhaseMeasure Phase

SIPOC-RMSIPOC-RM CTQ-RCTQ-R Check SheetCheck Sheet MSAMSA Basic StatisticsBasic Statistics

GraphGraphRole Throughput YieldRole Throughput YieldProcess CapabilityProcess CapabilityDPMODPMOCOPQ CalculationCOPQ Calculation

Page 32: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

32© 2010 Nkumbwa™. All Rights Reserved.

Measure PhaseMeasure Phase

Project ReviewProject Review Customer satisfactionCustomer satisfaction Effectiveness of processEffectiveness of process Efficiency of processEfficiency of process Base line sigma (Yield, DPMO, CPk)Base line sigma (Yield, DPMO, CPk) Cost of poor qualityCost of poor quality

Page 33: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

33© 2010 Nkumbwa™. All Rights Reserved.

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 PhaseMeasure Phase

Page 34: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

34© 2010 Nkumbwa™. All Rights Reserved.

Time

How do we know our process?

Process Map

Historical Data

Fishbone

Page 35: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

35© 2010 Nkumbwa™. All Rights Reserved.

RATIONAL SUBROUPING Allows samples to be taken that include only white noise, within the samples. Black noise

occurs between the samples.

RATIONAL SUBROUPING Allows samples to be taken that include only white noise, within the samples. Black noise

occurs between the samples.

RATIONAL SUBGROUPSMinimize variation within subgroups

Maximize variation between subgroups

RATIONAL SUBGROUPSMinimize variation within subgroups

Maximize variation between subgroups

TIME

PR

OC

ES

S

RE

SP

ON

SE

WHITE NOISE (Common Cause Variation)

BLACK NOISE (Signal)

Page 36: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

36© 2010 Nkumbwa™. All Rights Reserved.

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 sigma companies

•The trivial many

Page 37: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

37© 2010 Nkumbwa™. All Rights Reserved.

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

Page 38: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

38© 2010 Nkumbwa™. All Rights Reserved.

Assignable CauseAssignable Cause

Outside influencesOutside influences Black noiseBlack noise Potentially controllablePotentially controllable How the process is actually performing over timeHow the process is actually performing over time

Fishbone

Page 39: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

39© 2010 Nkumbwa™. All Rights Reserved.

Common Cause VariationCommon Cause Variation

Variation present in every processVariation present in every process Not controllableNot controllable The best the process can be within the present The best the process can be within the present

technologytechnology

Page 40: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

40© 2010 Nkumbwa™. All Rights Reserved.

2Total = 2

Part-Part + 2R&R

Recommendation:

Resolution 10% of tolerance to measureGauge R&R 20% of tolerance to measure

• Repeatability (Equipment variation)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.

•Stability or DriftTotal 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-PartR&R

Page 41: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

41© 2010 Nkumbwa™. All Rights Reserved.

MeasureMeasureCharacterize Process

Understand ProcessEvaluateEvaluate

Improve and Verify ProcessImproveImprove

Maintain New ProcessControlControl

Page 42: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

42© 2010 Nkumbwa™. All Rights Reserved.

Evaluate / Analysis PhaseEvaluate / Analysis Phase

Data AnalysisData Analysis Process AnalysisProcess Analysis Formulate HypothesisFormulate Hypothesis Test HypothesisTest Hypothesis

Page 43: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

43© 2010 Nkumbwa™. All Rights Reserved.

Evaluate / Analysis PhaseEvaluate / Analysis Phase

Run chartRun chart HistogramHistogram Pareto chartPareto chart Scatter DiagramScatter Diagram Relation DiagramRelation Diagram CE DiagramCE Diagram Process AnalysisProcess Analysis Hypothesis TestingHypothesis Testing

Chi-squareChi-square T-Test T-Test ANOVA CorrelationANOVA CorrelationRegressionRegression

Page 44: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

44© 2010 Nkumbwa™. All Rights Reserved.

Evaluate / Analysis PhaseEvaluate / Analysis Phase

Project ReviewProject Review

Validated root cause statementValidated root cause statement

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45© 2010 Nkumbwa™. All Rights Reserved.

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

Page 46: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

46© 2010 Nkumbwa™. All Rights Reserved.

What do we Need?What do we Need?

LSL USL LSL USL

LSL USL

Off-Target, Low VariationHigh Potential DefectsGood Cp but Bad Cpk

On TargetHigh VariationHigh Potential DefectsNo so good Cp and Cpk

On-Target, Low VariationLow Potential DefectsGood 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)

Variation reduction and process centering create processes with less potential for defects. The concept of defect reduction applies to ALL processes (not just manufacturing)

Page 47: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

47© 2010 Nkumbwa™. All Rights Reserved.

Eliminate “Trivial Many”Eliminate “Trivial Many”

Qualitative Evaluation Technical Expertise Graphical Methods Screening Design of Experiments

Qualitative Evaluation Technical Expertise Graphical Methods Screening Design of Experiments

Identify “Vital Few”Identify “Vital Few”

Pareto Analysis Hypothesis Testing Regression Design of Experiments

Pareto Analysis Hypothesis Testing Regression Design of ExperimentsQuantify

Opportunity

Quantify Opportunity

% Reduction in Variation Cost/ Benefit

% Reduction in Variation Cost/ Benefit

Our Goal:Identify the Key Factors (x’s)

Page 48: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

48© 2010 Nkumbwa™. All Rights Reserved.

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

Page 49: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

49© 2010 Nkumbwa™. All Rights Reserved.

Statistical AnalysisStatistical Analysis

0.0250.0200.0150.0100.0050.000

7

6

5

4

3

2

1

0

New Machine

Fre

que

ncy

0.0250.0200.0150.0100.0050.000

30

20

10

0

Machine 6 mthsF

req

uenc

y

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

5545352515 5

60

50

40

30

20

10

0

X

Y

R-Sq = 86.0 %

Y = 2.19469 + 0.918549X

95% PI

Regression

Regression Plot

Compare

Sample

Means

& Variance

s

Identify

Relationsh

ips

Establis

h

Limits

Apply statistics to validate actions & improvements

Page 50: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

50© 2010 Nkumbwa™. All Rights Reserved.

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

TECHNOLOGY1 2 3 4 5 6

goodpoor

2.5

2.0

1.5

1.0

0.5CO

NTR

OL

shift

St

poor

good

Page 51: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

51© 2010 Nkumbwa™. All Rights Reserved.

MeasureMeasureCharacterize Process

Understand ProcessEvaluateEvaluate

Improve and Verify ProcessImproveImprove

Maintain New ProcessControlControl

Page 52: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

52© 2010 Nkumbwa™. All Rights Reserved.

Improvement PhaseImprovement Phase

Generate Improvement alternativesGenerate Improvement alternatives Validate ImprovementValidate Improvement Create “should be” process mapCreate “should be” process map Update FMEAUpdate FMEA Perform Cost/Benefit analysisPerform Cost/Benefit analysis

Page 53: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

53© 2010 Nkumbwa™. All Rights Reserved.

Improvement PhaseImprovement Phase

Brain StormingBrain Storming CreativityCreativity Criteria WeightingCriteria Weighting Change Management toolsChange Management tools DOEDOE Cost/Benefit AnalysisCost/Benefit Analysis

Page 54: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

54© 2010 Nkumbwa™. All Rights Reserved.

Improvement PhaseImprovement Phase

Project ReviewProject Review Validated pilot studyValidated pilot study Result of cost benefit analysisResult of cost benefit analysis Plan of control phasePlan of control phase

Page 55: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

55© 2010 Nkumbwa™. All Rights Reserved.

Design of Experiments (DOE)Design of Experiments (DOE)

To estimate the effects of independent Variables on Responses.To estimate the effects of independent Variables on Responses.

TerminologyTerminology Factor Factor –– An independent variable An independent variable Level Level –– A value for the factor. A value for the factor. Response - OutcomeResponse - Outcome

X YPROCESS

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56© 2010 Nkumbwa™. All Rights Reserved.

Why use DoE ?Why use DoE ?

Shift the average of a process.Shift the average of a process.

Reduce the variation.Reduce the variation.

Shift average and reduce variationShift average and reduce variation

x1 x2

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57© 2010 Nkumbwa™. All Rights Reserved.

DoE TechniquesDoE Techniques

Full Factorial.Full Factorial.

2244 = 16 trials = 16 trials 2 is number of levels2 is number of levels 4 is number of factors4 is number of factors

• All combinations are tested.All combinations are tested.

• Fractional factorial can reduce number of trials from 16 Fractional factorial can reduce number of trials from 16

to 8.to 8.

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58© 2010 Nkumbwa™. All Rights Reserved.

DoE TechniquesDoE Techniques

Fractional FactorialFractional Factorial

Taguchi techniquesTaguchi techniques

Response Surface MethodologiesResponse Surface Methodologies

Half fractionHalf fraction

Page 59: 1 © 2010 Nkumbwa™. All Rights Reserved. Six Sigma Strategy & Management Sir Eng R. L. Nkumbwa™

59© 2010 Nkumbwa™. All Rights Reserved.

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 ExperimentSteps in Planning an Experiment

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“….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

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MeasureMeasureCharacterize Process

Understand ProcessEvaluateEvaluate

Improve and Verify ProcessImproveImprove

Maintain New ProcessControlControl

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Control PhaseControl Phase

Develop control strategyDevelop control strategy Develop control planDevelop control plan Update procedure and training planUpdate procedure and training plan Monitor resultMonitor result Corrective action as neededCorrective action as needed

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Control PhaseControl Phase

Control chartControl chart

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Control PhaseControl Phase

Project ReviewProject Review ProcedureProcedure Work instructionWork instruction Full implementationFull implementation Control chart of resultControl chart of result

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Control PhaseControl 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

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Control PhaseControl 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 Y4. Implement/Document Control Plan5. Audit Control Plan6. Monitor Performance Metrics

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Control PhaseControl 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))

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Control PhaseControl 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))

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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 - RMA, 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

VariablesAttributes

Measurement of subgroupsIndividuals

Yes

No No

Yes

Yes

No

Yes

No

Defects Defectives

Control PhaseControl Phase

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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

Tol

eran

ce

Lim

t

Tol

eran

ce

Lim

t

Hig

h

Ref

eren

ce L

ine

PR

E-C

ontr

ol

DIM

EN

SIO

N

NO

MIN

AL

Ref

eren

ce L

ine

PR

E-C

ontr

ol

Additional Variable-Based ToolsAdditional Variable-Based Tools

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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 ToolsAdditional Variable-Based Tools

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• 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 ClosureProject Closure

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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)?What is Design for Six Sigma (DFSS)?

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DFSS Methodology & ToolsDFSS Methodology & Tools

Define Measure Analyze Design Verify

Under-standcustomerneeds andspecifyCTQs

Developdesignconceptsand high-level design

Developdetaileddesign andcontrol/testplan

Testdesign andimplementfull-scaleprocesses

Initiate, scope,and plan theproject

DESIGN FOR SIX SIGMA

DELIVERABLES

TeamCharter

CTQs High-levelDesign

DetailedDesign

Pilot

TOOLS

Mgmt Leadership Customer ResearchFMEA/Errorproofing

Project QFD Process SimulationManagement Benchmarking Design Scorecards

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Design for Six SigmaDesign for Six Sigma

Pre-DEFINE PhasePre-DEFINE Phase

Introduction to Six SigmaIntroduction to Six Sigma DFSS / New Product Introduction (NPI) ProcessDFSS / New Product Introduction (NPI) Process

Strategic visionStrategic vision Logical chain of product conceptsLogical chain of product concepts Product evolution roadmapProduct evolution roadmap

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DEFINE PhaseDEFINE Phase

Establish Design Project Financial Analysis Project Management and Risk Assessment

Design for Six SigmaDesign for Six Sigma

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MEASURE PhaseMEASURE 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 SigmaDesign for Six Sigma

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ANALYZE/HIGH-LEVEL DESIGN PhaseANALYZE/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 SigmaDesign for Six Sigma

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DETAIL DESIGN PhaseDETAIL DESIGN Phase

Risk Assessment Failure analysis Taguchi Methods Tolerancing DOE with RSM

Design for Six SigmaDesign for Six Sigma

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DETAIL DESIGN Phase (cont’d)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 SigmaDesign for Six Sigma

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DETAIL DESIGN Phase DETAIL DESIGN Phase

Concurrent Engineering Software Engineering Tools

(CMM, CASE)

ENHANCED DESIGN FOR:Commercial/Competitive SuccessManufacturabilityServiceabilityReliabilityAvailabilityInformation ManagementControl

Design for Six SigmaDesign for Six Sigma

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VERIFY PhaseVERIFY 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 SigmaDesign for Six Sigma

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VERIFY Phase -- continued VERIFY Phase -- continued

– Pilot Testing– Full-Size Scale Up and Commercialization– Design Information and Data Management– Lean Manufacturing

Design for Six SigmaDesign for Six Sigma

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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 dataRecheck ‘Z’ levels

Stop Fix process & design

Z<3

Z>= Design Intent M.A.I.C

M.A.DSix Sigma Design Process

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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

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MATRIX DIAGRAM

Pat

ient

sch

edul

ed

Att

enda

nt a

ssig

ned

Att

enda

nt a

rriv

es

Obt

ains

equ

ipm

ent

Tra

nspo

rts

patie

nt

Pro

vide

The

rapy

Not

ifies

of

retu

rn

Att

enda

nt a

ssig

ned

Att

enda

nt a

rriv

es

Pat

ient

ret

urne

d

Arrive at scheduled time 5 5 5 5 1 5 0 0 0 0 0Arrive with proper equipment 4 2 0 0 5 0 0 0 0 0 0Dressed properly 4 0 0 0 0 0 0 0 0 0 0Delivered via correct mode 2 3 0 0 1 0 0 0 0 0 0Take 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 20RANK 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

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Add f

eatu

res

Make e

xis

ting p

roduct

faste

r

Make e

xis

ting p

roduct

easie

r to

use

Leave a

s-is a

nd low

er

price

Devote

resourc

es t

o n

ew

pro

ducts

Incre

ase t

echnic

al support

budget

Out

arr

ow

s

In a

rrow

s

Tota

l arr

ow

s

Str

ength

Add features 5 0 5 45Make existing product faster 2 1 3 27Make existing product easier to use 1 2 3 21Leave as-is and lower price 0 3 3 21Devote resources to new products 1 1 2 18Increase 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.

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Green Belts & Black BeltsGreen Belts & Black Belts

GE has very successfully instituted this programGE has very successfully instituted this program 4,000 trained Black Belts by YE 19974,000 trained Black Belts by YE 1997 10,000 trained Black Belts by YE 200010,000 trained Black Belts by YE 2000 ““You haven’t much future at GE unless they are selected to You haven’t much future at GE unless they are selected to

become Black Belts” - Jack Welchbecome Black Belts” - Jack Welch Kodak has instituted this programKodak has instituted this program

CEO and COO driven processCEO and COO driven process Training includes both written and oral examsTraining includes both written and oral exams Minimum requirements: a college education, basic statistics, Minimum requirements: a college education, basic statistics,

presentation skills, computer skillspresentation skills, computer skills Other companies include:Other companies include:

Allied SignalAllied Signal -Texas Instruments-Texas Instruments IBMIBM - ABB- ABB NavistarNavistar - Citibank- Citibank

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TaskTaskTime on Time on Consulting/Consulting/

TrainingTrainingMentoringMentoring

Related Related ProjectsProjects

Green BeltGreen Belt Utilize Utilize Statistical/Quality Statistical/Quality techniquetechnique

2%~5%2%~5%Find one new Find one new green beltgreen belt

2 / year2 / year

Black BeltBlack Belt

Lead use of Lead use of technique and technique and communicate new communicate new onesones

5%~10%5%~10% Two green beltsTwo green belts 4 / year4 / year

Master Master Black BeltBlack Belt

Consulting/Consulting/Mentoring/Mentoring/TrainingTraining

80~100%80~100% Five Black BeltsFive Black Belts 10 / year10 / year

Green Belts & Black BeltsGreen Belts & Black Belts

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““It is reasonable to guess that the next It is reasonable to guess that the next CEO of this company, decades down the CEO of this company, decades down the road, is probably a Six Sigma BB or MBB road, is probably a Six Sigma BB or MBB

somewhere in GE right now…”somewhere in GE right now…”

Jack WelchJack Welch

Ex-CEO, GEEx-CEO, GE