Six Sigma
Improvement ToolsInteractive Lecture
This picture brings a saying to mind, I just watched a dog chase
his tail for 5 minutes and thought, Dogs are easily entertained
then I realized, I just watched a dog chase its tail for 5 minutes.
We see this a lot in business, sometimes its us chasing our tails,
sometimes we watch others chase their own tails. I always think of
paperwork and getting approvals, the process of wasted time that
just goes round in round. Another thought, in this picture a dog is
chasing his tail, what exactly would be the name for this often
practiced business process? We feel like this sometimes when we are
trying to figure out a problem. Sometimes we chase our tails trying
to define the problem, determine the root cause of a problem, and
most often when we are trying to produce a solution. Quality
Improvement Tools are defined by the book as numeric and graphic
devices used to help individuals and teams work with, understand,
and improve processes. Quality improvement tools help to prevent us
from chasing our tails.1Tools Offer AssistanceUnderstand the
current state of a processDetermine whether the process is in
controlFind Solutions & Root Cause Analysis(7 Basic Tools)Check
SheetsControl ChartsCause-and-Effect DiagramFlowchartsScatter
DiagramsRun ChartHistogramsScatter DiagramFlowchartPareto
ChartHistogramControl Chart
At the beginning of a process its important to understand the
current state or condition of the process. Check sheets,
flowcharts, and histograms are useful for determining basic
data.The next step is often to determine if the process is in
control. Control charts can be used to determine if the process is
in control. Scatter diagrams may be used to test for correlations
between two sets of variables if there is a possibility of
interrelated factors.Once a problem is defined, various approaches
can be used to find solutions. Cause-and-effect diagram, run chart,
scatter diagram, flowchart, Pareto chart, Histogram, and control
chart would be examples.Fishbone diagram (cause-and-effect diagram)
is useful to determine the root cause for a problem. Pareto diagram
is helpful to prioritize the causes identified. I will be briefly
highlighting some tools in this lecture, there is a link that will
go into further detail. I highly recommend that you review
them.2Affinity Diagram
http://annexsite.files.wordpress.com/2012/04/the2b20122bhandbook2bfor2bquality.pdf
http://www.syque.com/quality_tools/toolbook/Affinity/example.htm
Click Here for more Information
Affinity Diagrams are useful for organizing verbal information
into visual information. Its easy, you write ideas on say, post-it
notes, and then group the ideas that are relevant to each other or
into their natural affinity groups. The benefits include organizing
and giving structure, as well as, identifying key areas where
improvement is most needed. When do we use an Affinity Diagram? In
several situations: when you are confronted with many facts or
ideas in apparent chaos, when issues seem too large and complex to
grasp, or when group consensus is necessary. Typical situations
include after a brainstorming exercise and when analyzing verbal
data, such as survey results. A few Examples: A Design department
brainstorming for new ideas. They use an Affinity Diagram to
organize and understand the results and find a whole new product
line.Another example, a marketing group have done a customer survey
and want to organize the unstructured comments given in the section
of 'how could we better serve your needs'. They copy each comment,
word for word onto cards and use an Affinity Diagram. The result is
a clear segmentation of needs.A final example, organizing thoughts
about possible improvement projects before presenting them to a
supervisor. The result is clear agreement on key points.
3Arrow DiagramA sequenced plan and a tool for monitoring
progress.
http://www.syque.com/quality_tools/tools/TOOLS15.htm Click Here
for more Information
An arrow diagram is a sequenced plan and a tool for monitoring
progress. In the image, you will see the general idea of the
construction of an arrow diagram.4Quick QuizHow long will the
duration of the project be?
http://www.syque.com/quality_tools/toolbook/Affinity/example.htm
How long will the project take? Heres a hint, it would be the
longest path in the arrow diagram. 5AnswerHow long will the
duration of the project
be?http://www.syque.com/quality_tools/toolbook/Affinity/example.htm
5 Days + 10 Days + 2 Days = 17 Days
How long will the project take? The longest path in the arrow
diagram would be to get the service desk designed at 5 days, then
to have it built taking 10 days, and finally 2 days for
installation. This is the shortest possible time that the entire
project can be complete, which is 17 days. it would also be what is
called the critical path of the project.6AuditPlanned arrangements
are effectively implementedScheduledIndicate necessary improvement
and corrective actionsEffectiveness of processes and assigned
responsibilitiesShould be carried out by someone unrelated to the
process
An audit of a quality management system is carried out to ensure
that actual practices conform to the documented procedures. They
should be scheduled. Audits should not be conducted with the aim of
revealing defects or irregularities, audits are for establishing
facts rather than faults. They can be used to indicate necessary
improvement and corrective actions, but they also determine whether
the processes are effective and whether responsibilities have been
correctly assigned. They should be carried out by someone unrelated
to the process. Process employees, supervisors, etc. should never
conduct an audit on their department. The point is to bring in an
outside perspective.7AuditFirst-party assessment or internal
auditBy the organizations own employeesSecond-party auditExternal
customer makes an assessment of a supplierThird-party
auditIndependent organization that is not connected with any
contract between the customer and supplier
There are different types of audits. A first-party assessment or
internal audit is conducted by the organizations own employees. An
example would be the Quality Assurance Department at the company.A
second-party audit is an external customer that makes an assessment
of a supplier. An example, a manufacturer of aircraft breaking
systems might have their customer, like Rolls Royce or GE, come in
for an audit. This would be a second-party audit.A third-party
assessment is conducted by an independent organization that is not
connected with any contract between the customer and supplier but
is acceptable to them both. An example, banks generally have an
external auditor to ensure that they are in compliance with
regulations and guidelines governing lending practices and
disclosure procedures. Since the industry guidelines are frequently
updated and revamped, it is important for the bank to be in total
compliance in their operations to avoid penalties and properly
secure customer deposits. 8Bar ChartA bar chart shows the number of
units in each categoryExamples: Histogram Pareto chart
http://4.bp.blogspot.com/-fDetqIvrB78/T3nkptplevI/AAAAAAAAADc/uo9AseSn8BU/s1600/histog2.gif
A bar chart shows the number of units in each category, its as
simple as that. Examples of bar charts are histograms and Pareto
charts.9BenchmarkingWhat is benchmarking?Different Approaches:
Competitive, Functional, Performance, Process, and
Strategic.Principles of Operations Management, Heizer & Render.
Pearson Prentice Hall, 2008Another Ferrari Racing Team Article
http://pulpaddict.com/wp-content/uploads/2013/12/ac2c0409fer.jpg
Benchmarking involves selecting a demonstrated standard of
performance (product, service, cost, or practice) that represents
the very best performance for a process or an activity that is very
similar to your own. Typical performance measures include
percentage of defects, cost per unit or per order, processing time
per unit, service response time, return on investment, customer
satisfaction rates, and customer retention rates. Lets take a look
at a few examples: Xerox and Mercedes Benz went to LL Bean for
order-filling and warehouse benchmarks. Xerox noticed that LL Bean
was able to pick orders three times as fast as they could. Another
example: A hospital benchmarked against the Ferrari Racing Team? At
the hospital, handoff issues accounted for 35% of preventable
hospital mishaps due to temporary nursing staff, frequent shift
changes for interns, surgeons working in larger teams, the tangle
of wires and tubes connected to patients, etc. Britains largest
Childrens hospital decided to benchmark Italys Formula One Ferrari
racing team for help in revamping patient handoff techniques. Pit
Crews are the best at hand-offs. The results, handoff errors fell
more than 42% and they were faster which increased their
productivity.Internal Benchmarking is comparing within your
company. Xerox benchmarked with their division in France who sold
five times more copiers than any other division. Xerox set their
standards by using Frances approach, which included better sales
training and using dealer channels to supplement direct sales. The
results, Norway increased sales by 152%, Holland by 300%, and
Switzerland by 328%. Benchmarking is a very effective improvement
tool.10Benchmarking Example: Resolving Customer ComplaintsBest
PracticeJustificationMake it easy for clients to complain.It is
free market research.Respond quickly to complaints.It adds
customers and loyalty.Resolve Complaints on the first contact.It
reduces cost.Use computers to manage complaintsDiscover trends,
share them, and align your services.Recruit the best for customer
service jobsIt should be part of formal training and career
advancementPrinciples of Operations Management, Heizer &
Render. Pearson Prentice Hall, 2008
This is just an additional example for benchmarking. These are
best practices for resolving customer
complaints.11BrainstormingGenerate ideas in a nonjudgmental
environment. RulesNever Judge ideasDont quitTry to write down all
of the idea exactly as presentedEncourage outrageous ideasHave a
diverse group
http://annexsite.files.wordpress.com/2012/04/the2b20122bhandbook2bfor2bquality.pdf
Click Here for more Information
Brainstorming is a group process used to generate ideas in a
nonjudgmental environment. An example, with the dog chasing his
tail, what should we name the business process? We could use the
brainstorming tool to develop a name. It can be structured or
round-robin, unstructured, or even silent.A few rules: Never Judge
ideasDont quitTry to write down all of the ideas exactly as
presentedEncourage outrageous ideasHave a diverse groupSide note,
crazy ideas are unique, if they are truly crazy, most likely no one
else has thought of them before. Therefore, their could be a
potential market in them. Its best to encourage this, to think
outside of the box. For example, think of websites that exist
Pinterest, Facebook, Linked-In, Amazon, at the time they were
brainstormed they were probably considered crazy. But whos laughing
now?12Cause-and-Effect diagramAKA Fishbone or Ishikawa
diagramIllustrates the relationship between a given outcome and all
the factors that influence the outcome.Read the steps on pgs.
117-118 of your textbook
Click Here for more Information
http://annexsite.files.wordpress.com/2012/04/the2b20122bhandbook2bfor2bquality.pdf
A cause-and-effect diagram is also known as a fishbone or
Ishikawa diagram. This diagram illustrates the relationship between
a given outcome, the Effect, and all the factors that influence the
outcome, the Cause. 13Check SheetForm used to perform frequency of
specific events during a data collection period.
http://en.wikipedia.org/wiki/Check_sheet Click Here for more
Information
A check sheet is a form used to perform frequency of specific
events during a data collection period. For example, you could make
a check sheet on the items you take to class. List the category and
then frequency: Number of Books, notebooks, pens, etc. 14ConsensusA
form of group decision making in which everyone agrees or at least
can live -- with the decision.
http://www.energynext.in/wp-content/uploads/2013/08/feedback-buttons.jpg
A consensus is a form of group decision making in which everyone
agrees or at least everyone can live -- with the decision. If even
one person says they cant support the decision, the team must keep
working. Reaching a consensus is more time consuming than simple
majority, but is more effective. Why? Everyone on the team agrees
to support it, therefore down the road no one can say I never
really liked that decision, so I dont support it. Three types of
votes: thumbs up, sideways, and down. If there are a lot of
sideways thumbs, we might want to consider looking for another
alternative.Consensus: Whos idea would be best for the name of the
business process shown in the first slide?15Continuous Quality
Improvement
http://jewzi.com/wp-content/uploads/2011/08/leadership.jpg Click
Here for more Information
Continuous Quality Improvement is a management approach to
improving and maintaining quality that emphasizes internally driven
and relatively constant assessments of potential causes of quality
defects, followed by action aimed either at avoiding a decrease in
quality or else correcting it in an early stage.
16Control ChartUsed to measure sequential or time-related
process performance and variabilityLine chart with control
limitsStatistical variationClick Here for more Information
A control chart is used to measure sequential or time-related
process performance and variability. It is a line chart with
control limits, it is used to spot statistical variation. One must
assess this variation to determine whether a process is operating
between the expected boundaries or whether something has happened
that has caused the process to go out of control.17Control Chart
Figure
1http://asq.org/learn-about-quality/data-collection-analysis-tools/overview/control-chart.html
Lets take a look at out-of-control signals.Two out of three
successive points are on the same side of the centerline and
farther than 2 from it. Point 4 sends that signal, the orange
circle. Two out of three points are below 2 sigma. We have a
problem.Four out of five successive points are on the same side of
the centerline and farther than 1 from it. Point 11 sends that
signal, the blue circle. Four out of five points are above one
sigma. A flag should be raised.A single point outside the control
limits. An example would be point sixteen, the red circle. The
point is above the UCL (upper control limit), therefore it is
actually considered a deviation, it is out of specification.A run
of eight in a row are on the same side of the centerline. Or 10 out
of 11, 12 out of 14 or 16 out of 20. Point 21, the green circle, is
eighth in a row above the centerline. Once again, our process is
out-of-control.Obvious consistent or persistent patterns that
suggest something unusual about your data and your process.
18Types of DataClick Here for more Information
http://managementhelp.org/blogs/quality/files/attribute-and-variable-type-data.jpg
There are essentially two types of data: attribute data and
variable data. Attribute Data would be counting the number of
occurrences or items in a single category of similar items or
occurrences. Examples include Go/No Go, Pass/Fail, Yes/No, and
Present/Absent.Variable Data, on the other hand, displays values
resulting from the measurement of a continuous variable. Examples
include elapsed time, temperature, and radiation dose.
19Cost of Quality
http://www.isixsigma.com/implementation/financial-analysis/cost-quality-not-only-failure-costs/
Click Here for more Information
Prevention costs are incurred to prevent or avoid quality
problems. Prevention costs are generally associated with design,
implementation, and maintenance. Examples include establishing
specs for incoming material, creation of inspection plans, quality
system maintenance, or training.Appraisal Cost are associated with
measuring and monitoring activities related to quality. Appraisal
costs associated with customers and suppliers evaluation of
purchased materials, processes, products, and services to ensure
that they conform to specifications. Examples include checking
incoming material, process setup confirmation, or audits.Internal
failure costs are incurred to remedy defects discovered before the
product or service is delivered to the customer. They include
detection of non-conformances before received by customer. Examples
include scrap, rework, or failure analysis
(investigations).External failure costs are incurred to remedy
defects discovered by customers. Examples include repairs and
servicing, warranty claims, complaints, or returns. This is the
worst cost of quality type.
20Design of Experiments (DOE)Structured way to characterize
processes. Analyze a process and identify key characteristics or
factors that most impact the quality of the end item.Run limited
tests, collect data, and analyzeWhich factors contribute the most
to final quality and define the parameter setting for those
factorsStart in the earliest stage of design
Design of experiments is a structured way to characterize
processes. The purpose is to analyze a process and identify key
characteristics or factors that most impact the quality of the end
item. Design of experiments includes running limited tests,
collecting data, and analyzing the data. Its important to determine
which factors contribute the most to final quality and define the
parameter setting for those factors. Finally, its vital to start in
the earliest stage of design.
21Five
Whyshttp://www.handsongroup.com/wp-content/uploads/2012/05/five-whys-example-chart.png
The Five Whys is a technique for getting to the root cause of a
problem by asking why after each successive response, up to five
times. The book states, By asking Why? a number of times, you peel
away layer after layer of symptoms to get to the real heart of an
issue.
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