Six Sigma Exam 1

crisis

problem —> solution

non-crisis

problem —> root cause—> solution

To solve a problem is ______ to _____ a problem is better

good ; prevent

SIPOC

Suppliers, input, process, output, and customer

5 Why’s

Why, why, why, why, why *helps get to the bottom of the cause of issue

Ishikawa/Fishbone/ C&E Diagram

defective → output→ man , method, material, machine, mother nature, measure

Six sigma

problem-solving methodology

six sigma performance

statistical term for a process that produces less than 3.4 defects per million defect opportunities

six sigma improvement

key outcomes/work process of a business improves dramactically ( 70% = breakthrough)

six sigma deployment

perspective rollout of six sigma methods across an organization( roles and responsibilities)

six sigma toolset

collection of methods & tools of six sigma practitioners to achieve improvement

change process to _______ → ______ quality output

reduce variation; consistent

define

Set the context, key metrics, and objectives for the project

measure

Capture the current baseline performance and capability of the process or system

being improved. Identify all possible contributing factors.

Analyze

Narrow the pool of possible factors down to the critical few. Use data and tools to

understand the cause-and-effect relationships in the process or system.

Improve

Develop and validate the modifications that lead to an improvement in the process or

system.

control

Establish plans and procedures to ensure the improvements are adopted and sustained.

six sigma occurs 2 levels

managerial( long-term)

tactical( short-term)

managerial

Six Sigma is used to achieve predictability & control of performance in a business or business process by applying the methods of science to the domain of leadership

• six sigma is war on variation

clear value proposition & ROI( VOB)

direct, measurable financial focus and impact

top management commitment & accountability

top-down initiative

customer focus

what are my customer’s requirements

connected business metrics

performance measures that are accessible and visible to everyone whose actions or decisions impact performance

dashboard

a metaphor for critical performance metrics

key drivers

customer satisfaction(voc), revenue & cost ( VOB)

knowledge

provide knowledge about process performance

alignment

must align with key drivers

lead metrics( KPI) ( predictable, influenceable)

• supplier

• input

• process

Lag metrics( after the fact)

• output

• customer

Good Metrics

1. Get leaders involved

2. Limit the number of metrics

3. Visually represent your metrics

(dashboard)

4. Metrics must be simple (scoreboard)

5. Metrics must respond quickly

6. Metrics should drive only important

activities

7. Take corrective action

8. Show Lead and Lag Metrics

Bad Metrics

1. Cannot collect accurate or complete data

2. Complex and difficult to explain

3. Complicated operations with excessive

overhead

4. Cause employees to act not in the best

interest of customers or the company

process orientation

1, 2, …n +=

project focus

DMAIC framework

Infrastructure for Change

• Leadership System

• Customer Satisfaction (VOC)

• Business Goal (VOB)

• Criteria for Selecting Projects

• governance

• Methodology

• 5 phases (DMAIC)

• IT Systems, SOP, Dashboard

• SOP = Standard Operating Procedure

• Competency & Compensation

• Roles & Responsibilities

• Belts: Yellow, Green, Black, Master Black

• Enterprise Communication

• Project Management

• Project Savings Criteria

• ROI

• Review Process

• Gated process

complete ___ change

culture ; The ultimate goal is for everyone in the organization to have the ability to understand customers’ requirements, map processes, collect data, measure

performance, identify risks and opportunities, analyze inputs and outputs, and make

continuous improvements.

practices

• visible

• easier to change

Values

• hidden

• harder to change

Problem/ defect

VOC; do not meet customers’ standards

Root Causes

VOP; Do not have a process that meets our customer requirements

Specification

the value separating acceptable from unacceptable performance

Specification Limit (SL)

• One-Sided Specification( at least 50 lbs)

• Two-Sided Specification( 450 g ± 5 g)

Upper Specification Limit( USL) VOC

if above, out of specification

Lower Specification Limit( LSL) VOC

if below, out of specification

Target (T) VOC

goal( one value)

RUMBA

• Reasonable- not too tight, not too loose ( External VOC)

• Understandable - clear, unambiguous ( External VOC)

• measurable( External VOC)

• Believable - employees “ bought in”( Internal VOC)

• Attainable - process can meet satisfaction( Internal VOC)

COPQ

cost of poor quailty

Quality Defined: Tradition

Quality = compliance with specifications

• rework

• scrap

Quality Defined: Six-Sigma

Quality = on-target performance with minimum variation

“Goal Post” Quality

• Inconsistency across the range

• Process adjusted to meet specifications

• Once the specification is met, individuals’ responsibility ends

• money and time are spent to react to out-of-specification product and service

• Focus is on yield ( good), a lag measure disconnected from reality

Six Sigma- On-Target Quality

• Consistency centered on the target

• Process standardized to meet specifications

• Individuals are continually responsible for reducing variation

• Money and time are spent to proactively understand and eliminate variation

• Focus is on capability, a lead measure connected to quality

Rolled-Through-Yield( RTY)

ipo x ipo x ipo x ipo

COPQ is typically 25-40% of revenue

• scrap

• rework

• inspection

• expedite

• extra inventory

• high working capital

• warranty

• lost customer loyalty

• lost sales

• engineering changes

• late deliveries

Short term

• calculated from approximately 20 to 30 subgroups

• variability is often relatively small

Long-Term Capability

• Samples come from different machines, operators, measuring equipment, and even environmental factor changes

• Variability is often greater than short term capability due to( special cause variation and mean shift)

Brainstorming

verbal

Nominal Group Technique

non-verbal

x represents( independent)

input

f represents( change)

function

e represents

errors or uncertainty surrounding how accurately the Xs are transformed to create outcome

Y represents( dependent)

output or results you desire or need

Determinism

The principle that you can create a desired outcome by configuring and

controlling inputs in a specific manner

We analyze:

The inputs (Xs) and the process (f), and then implement

the best possible combination to achieve our objective

Reactionary

we exercise direct control over our environment instead of allowing our

environment to control us_____

True

Correlation does not imply causation

Causal connection likely exists if:

• A reasonable explanation exists

• The connection happens under different environmental conditions

• You’ve ruled out confounding variables

Variation_____ from expectation

deviation

What is the central theme of Six Sigma

The characterization, measurement, analysis, and control of variation

Common Cause Variation

• AKA natural variation

• Embodied in the e in the transfer function

Special Cause Variation

• AKA assignable variation

• Special causes are specific things you can identify and do something about

Coping with variation

• First, reduce special-cause variation

• second reduce common cause variation

( Data Collection: VOP) Measuring translates knowledge into

numbers

Without measuring your ___ and ___, your ability to improve will be weak

x;y

Quantitative measures

continuous, length, weight, time

qualitative

discrete/ attribute: pass/ fail, dent/ no dent, yes/no

Leverage

The ability to apply effort toward the critical few Xs that have the greatest

impact on your desired Y

Pareto’s Law

roughly 80% of the effects come from 20% of the causes

When you look for leverage in business, you search for the _______________ of the variables to

provide the majority of the power.

minority

We find the critical ________ by following a structured process for defining, measuring, and

analyzing all the cause-and-effect relationships

few

Define

VOC + VOB

Measure

VOP

Analyze

VOC + VOB vs. VOP

Six Sigma gives you the tools needed to quantify risk and know whether you're making an appropriately accurate analysis or have succumbed to the ravages of the all-too-common disease of analysis

paralysis

A program is a group of related_____ managed in a coordinated way to obtain benefits and control not available from managing them individually.

projects

A project is a _______endeavor undertaken to create a unique product, service, or result

temporary

1.) Core Team( Steering Committe)

• Six Sigma is a top-down initiative

• Begin with a team of executives who ensure the efficient and effective rollout of the Six Sigma Program:

• Make the initiative visible

• Set stretch goals

The core team is cross-functional

• Executives & Business Unit Leaders

• Functional Leaders

• Finance( provide $, measure ROI)

• Training ( provide $, measure ROI)

• Information Technology

• Human Resources( belts + payment levels)

• Communications

• Six Sigma Deployment Leader-→ reporting up to the rest of the core time

2.)Six Sigma Deployment Leader

The deployment leader ensures the effective alignment of corporate

strategic goals with business unit deployment plans.

• Accountable for Six Sigma results

• Drives the mission and vision (mission: why? , vision: what it will like when done)

• Removes barriers

• Internally publicizes Six Sigma

• Creates and maintains passion and commitment

• Briefs the core team (steering committee) on progress

3.) Project Champion

Project champions are responsible for disseminating and successfully

applying Six Sigma technical know-how.

• Identifies, selects, scopes, prioritizes, and assigns __projects__________

• Selects Black Belts, Green Belts, and Yellow Belts

• _Support__ the project through removal of barriers, securing resources, coaching, and

reviewing status

• Establishes a backlog of projects

• Briefs the deployment leader on progress

• Promotes best-practices and reuse across organizational boundaries

4.) Belts

Master Black Belt( most knowledge/ skills)

• Full-time

• Teaches and mentors ( coach)

Black Belt

• Full-time Job

• Leads complex projects

Green Belt( Part- time job)

• Part-time

• Leads simple projects

Yellow Belt( least knowledge/skills)

• Part-time

• Identifies measurement scales, defines critical process factors, collects

some data, etc.

Roles of Six Sigma

Core → deployment leader → project champion → deployment leader → core team

Responsbilties

initialize stage, deploy stage, implement, expand stage -→ sustain stage

Initialize Stage

Establish goals and install infrastructure …

• Launch planning

• Human resource guidelines

• Communications plan

• Financial guidelines( ROI)

• Project selection guidelines( goverance)

• Project tracking and reporting

• Management dashboards→ lead & lag metrics

• IT (information technology) support

Communication plan

message: who, what, why, when

medium: where, how

5 C’s of a message: clear, concise, creative, compelling, continuous (not space)

Deploy stage

assign staff

• project champions

• black belts

• green belts

• yellow belts

train/eqip

deploy the infrastructure of initialize stage

Implement Stage

• DMAIC

• Implement projects and improve performance, yielding finance results

Expand Stage

Expand (Roll Out) Six Sigma to new locations, lines of business, and domains of activity

• managing for breakthrough

• thinking for breakthrough

• designing for breakthrough

• processing for breakthrough

Managing for breakthrough

Entails all the plans, systems, and processing for leading improvement within an organization.

thinking for breakthrough

a set of guiding principles that fuels cultural change and gets many people speaking the same language of performance.

designing for breakthrough

encompasses the activities that focus on optimizing the design process prior to (before) manufacturing products, delivering services, or conducting transactions for customers.

processing for breakthrough

The realm of activity focused on optimizing the performance of exiting businesses and operational processes.

sustain stage

• The focus changes from a project orientation to a process-management approach.

• The culture is self-healing

• The Six Sigma project becomes a tool for addressing flare-up issues