6sigma fmea.ppt

707051 H 1 BBSAW - 3 1

Failures Mode and Effect (FMEA)

707051 H 2 BBSAW - 3 2

FMEA Overview

What is FMEA?

Why use FMEA?

When to use FMEA

Who do we invite

How it Works?

Steps to complete an FMEA

The Rating Scale

Calculating the RPN

FMEA Tips

Review the FMEA Template

707051 H 3 BBSAW - 3 3

Failure Modes And Effects Analysis

FMEA (Failure Modes And Effects Analysis) is a tool to identify and evaluate possible process failures and the risks associated with them

Use the FMEA to build a plan for reducing or eliminating that risk

707051 H 4 BBSAW - 3 4

What is FMEA?

Prioritization tool Considers three factors simultaneously

(Severity, Occurrence, Detectability) Asks “What could go wrong, and will I try to

avoid, prevent it, or fix it?” Helps build bridges with the disenfranchised

707051 H 5 BBSAW - 3 5

Why Use FMEA?

To identify and prioritize parts of the product or process that need further improvement

To ensure the quality, and reliability of products and services

To increase customer satisfaction by preventing or reducing impact of errors

To document and track actions taken to reduce risk

To develop action plans to avoid risk/defects

707051 H 6 BBSAW - 3 6

When To Use FMEA

When a service, product or process is created, improved, or redesigned

When existing products, services, or processes are used in new ways or in new environments

To expose potential problems in a process

707051 H 7 BBSAW - 3 7

Who Do We Invite?

Customer : Give us insight to their hidden needs and our hidden mistakes

Suppliers : Provide insight to solutions we might not have envisioned

Associates: Those who live with the process, give us logic flaws and potential solutions

Process Owners: Provide the keys to empowering change

Total count: 4 – 8 people, never alone!

707051 H 8 BBSAW - 3 8

How It Works?

Failure modes - Under what conditions could something go wrong?

Failure effects (Ys) - When things go wrong, what does it look like?

Failure cause (Xs) - What makes the failure occur?

707051 H 9 BBSAW - 3 9

Steps For Completing A FMEA

1.Review the product, service, or process

2.Brainstorm and group possible failure modes

3.List one or more potential effects for each failure mode

Answer the question: If the failure occurs, what are

the consequences?

4.Assign a severity rating for each effect

5.Assign an occurrence rating for each failure cause

6.Assign a detection rating for each failure mode

7.Calculate risk priority number (RPN) for each effect

8.Use the RPNs to select high priority failure modes (sort by RPN)

9.Plan to reduce or eliminate the risk associated withhigh priority failure modes

10.Carry out the plans

11.Recompute RPN

707051 H 10 BBSAW - 3 10

Can use a 1 – 5 Scale

Advantage: Few options to choose from, quick decisions

Disadvantages: Discrimination can be poor, everything looks the same

Can use a 1 – 10 scale

Advantage: More range of choices, allows for averaging close misses wit little hard feelings

Disadvantages: More tiring to read list repeatedly

The Rating Scales

707051 H 11 BBSAW - 3 11

The Rating Scales

Rating Severity of EffectLikelihood of Occurrence Ability to Detect

5Almost Certain Loss of

Customers

Very High: Failure is almost

inevitableLittle to no chance

of detection

4High Probability of customer

dissatisfaction and lost businessHigh: Repeated

FailuresVery low chance

of detection

3Noticeable to customers resulting

in potential for lost business

Moderate: Occasional

FailuresModerate chance

of detection

2

Minor defected noted by some customers. Minor defect noticed

by discriminating customers.Low: Relatively

few failuresHigh chance of

detection

1 No EffectRemote: Failure

is unlikelyAlmost certain

detection

Example of a 1 – 5 Scale

707051 H 12 BBSAW - 3 12

The Rating Scales

Score (High is always worst) Severity of effect (Use highest number)

Likelihood of Occurrence (Currently) Ability to Detect

Cost Quality Schedule

10 Guaranteed Loss of Customer Every timeWill reach customer before anyone knows

9 Almost certain loss of customer Almost inevitable Caught in final audit

8Very High Probability of customer dissatisfaction and lost business

Very High repeated Failures

Detected in later steps, out of our scope after more work invested in process

7High Probability of customer dissatisfaction and lost business Repeated Failures

Detected in later steps, out of our scope, before more value added work

6Detectable after our process only, within our scope

5Noticeable to customers resulting in potential for lost business Occasional Failures Caught in our end process audit

4 Caught in later process step

3

Minor defected noted by some customers. Minor defect noticed by discriminating customers.

Relatively Few Failures

Caught in process step by other checks and balances

2 Almost no effect Failure is unlikely Stopped as the error occurs

1 No Effect Never happens Can't happen

Example of a 1 – 10 Scale

707051 H 13 BBSAW - 3 13

FMEA: Calculating Risk Priority Number (RPN)

RPN = Severity x Occurrence x Detection

Severity Scale

Occurrence Scale

Detection Scale

Bad

Good

Guaranteed Loss of Customer

Noticeable for customers resulting in potential for Loss business

No Effect

10

Rating Criteria – A Failure Could:

10

9

8

7

6

5

4

3

2

1

Rating

Every time

Occasional Failures

Never Happens

Likelihood

Will reach customer before anyone knows

Caught in our end process audit

Can’t happen

Rating Definition

9

6

5

4

3

2

8

7

1

10

9

5

4

3

2

7

1

6

8

707051 H 14 BBSAW - 3 14

Use brainstorming to identify key failure modes– Critical process or project steps (High Level)– High cost and/or customer impact– High probability (problems we see often)

Brainstorm first before scoring (RPN)

RPN Scales should be relevant to the process

Remember: Numbers are judgments

Identify proactive/preventive steps to reduce likelihood of failure

Part of the value of the FMEA is the discussion that is generated as a result of its use

FMEA Tips

707051 H 15 BBSAW - 3 15

Failure Modes And Effects Analysis

WorksheetProcess/Product:

FMEA Team:Black Belt:

FMEA Date: (Original)(Revised)

Page: of

FMEA Process Action Results

Item/ProcessStep

PotentialFailure Mode

PotentialEffect(s) Of

Failure Sev

erity Potential

Cause(s) OfFailure

Occ

urre

nce

CurrentControls

Det

ectio

n

RP

N Recommended Action

ResponsibilityAnd TargetCompletion

Date

Total Risk Priority Number Resulting Risk Priority Number

ActionTaken

Sev

erity

Occ

urre

nce

Det

ectio

n

RP

N

707051 H 16 BBSAW - 3 16

GB Project Example

Business Case: Credit cards issued at the 2 oz postage weight is costing Card Issuance approximately $975K YTD. Therefore, improving the postage performance of credit card issued will result in significant cost savings for the Card Issuance budget plan.

Problem Statement: Our 1st quarter 2004 2 oz postage trend for Credit Card Issuance is increasing 55% to 69% of total credit card volume issued. There is no existing process to monitor and validate postage trends for credit cards, which has resulted in missed revenue reduction opportunities.

Project Goal: The goal is to reduce the 2 oz postage volume by 30% and increase the 1 oz package volume to an optimized level of 60%, by 4th quarter 2004.

Scope: This project focuses on credit card postage performance, utilizing our Credit Card Production vendor - TSYS.

Customers & VOC: The project focuses on improving the SVA. The shareholder’s voice demands that we error proof our processes to drive best in class performance. However, our card carrying customers are not impacted by the weight of the card package, and therefore not impacted by this initiative.

Primary Metric: 2 oz. Postage trend for Credit Card

Secondary Metric: Card Issuance Package Unit Cost

707051 H 17 BBSAW - 3 17

Recalibrate Scales to Fit Project


5Almost certain to make package

weight 2 Oz.



of detection

4

High probability that the defect will cause package to approach

2 Oz thresholdHigh: Repeated


of detection

3

Effect independent of other changes does not cause postage

change



of detection

2

Neglible weight change/weight change does not significantly

impact overall packageLow: Relatively


detection

1 No effect on package weightRemote: Failure


detection


5Almost Certain Loss of

Customers



of detection

4High Probability of customer

dissatisfaction and lost businessHigh: Repeated


of detection

3Noticeable to customers resulting

in potential for lost business



of detection

2

Minor defected noted by some customers. Minor defect noticed

by discriminating customers.Low: Relatively


detection

1 No EffectRemote: Failure


detection

707051 H 18 BBSAW - 3 18

GB Project Example

#Process Function (Step)

Potential Failure Modes (process defects)

Potential Failure Effects (Y's)

SEV

Potential Causes of Failure (X's)

OCC

Current Process Controls

DET

RPN

Recommend Actions

Responsible Person & Target Date

Taken Actions

SEV

OCC

DET

RPN

2a

B of A Materials Mgmt submits request to collateral vendor for creation of materials

Provide wrong collateral specifications

Vendor creates the collateral out of spec

3

Materials Mgmt does not have updated Visa/MC specs

4 No Control 5 60

2b

B of A Materials Mgmt submits request to collateral vendor for creation of materials

Provide no collateral specifications

Vendor creates the collateral out of spec

4

Vendor uses previous specs from similar order

2 No Control 5 40

3a1Collateral vendor creates collateral

Produce collateral based on wrong specs

Vendor creates the new collateral out of spec

4

Same cause as vendor creates collateral out of spec - 2b

2 No Control 5 40

3a2Collateral vendor creates collateral

Produce collateral based on wrong specs

Vendor creates the BAU existing collateral out of spec

4

Same cause as vendor creates collateral out of spec - 2b

2 No Control 5 40

3bCollateral vendor creates collateral

Identify weight incorrectly

Incorrect weight loaded identified by collateral vendor

4Scales not calibrated

1 No Control 5 20

3c1Collateral vendor creates collateral

Identify weight incorrectly

Incorrect weight loaded (for new) identified by collateral vendor

4Assume weight are the same

1Current Process Procedures

3 12

1aCard Issuance BA requests a new collateral item

Request wrong collateral

Wrong collateral is created

3

Receive incorrect request from business partners

2Verification by Card Issuance BA

1 6

1bCard Issuance BA requests a new collateral item

Request wrong collateral

Wrong collateral is created

3 BA error 2Verification by Card Issuance BA

1 6

6sigma fmea.ppt

Documents