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Copyright Six Sigma Innovations 2000 1
MEASURE
Copyright Six Sigma Innovations 2000 2
MEASURE
Where Will Six Sigma Get Us?
• Everyone will be focused on their customers.
• Customer data and process metrics will drive decisions and actions.
• Business will operate at their process capability levels.
• New designs will be toleranced to known process capabilities.
• Strategic products and processes will be at Six Sigma.
• Teams will be rewarded for process improvement.
Copyright Six Sigma Innovations 2000 3
MEASURE
What is Six Sigma?
Tools and Tactics
Philosophy ofOperational Excellence
Business Strategy
Statistical Measure ofProcess Capability
Six Sigma
Copyright Six Sigma Innovations 2000 4
MEASURE
Operational Excellence
Sigma Level Spelling Errors
One Sigma 170 misspelled words per page in a book.
Two Sigma 25 misspelled words per page in a book.
Three Sigma 1.5 misspelled words per page in a book.
Four Sigma 1 misspelled word in 300 pages.
Five Sigma 1 misspelled word in a set of encyclopedias.
Six Sigma 1 misspelled word in all the books in a library.
Copyright Six Sigma Innovations 2000 5
MEASURE
Tools and TacticsMeasure
Analyze
Improve
Control
Learning about andapplication of Six Sigmaprinciples are driven byselected projects.
Projects are worked through these 4 main phases of methodology
Copyright Six Sigma Innovations 2000 6
MEASURE
Statistical Measure
• Product complexity demands Six Sigma process capability
A hypothetical jet engine has:
10CharacteristicsPer Operation
25Operations
Per Part
3000Parts PerDevice
750000Opportunities
for DefectsX X =
Defects per Device at:3 Sigma process capability = 50,105 Defects6 Sigma process capability = 2.6 Defects
Copyright Six Sigma Innovations 2000 7
MEASURE
Business Strategy
• Customers are demanding more.
• Competition is promising and doing more.
• We’re improving, but not fast enough.
• Poor quality can cost 20-30% of revenue.
• We need a breakthrough strategy.
Old BeliefHigh Quality=High Cost
New BeliefHigh Quality=Low Cost
Copyright Six Sigma Innovations 2000 8
MEASURE
The Challenge
Customer CTQ’s Customer CTQ’sCustomer CTQ’s
ManufacturingSuppliersTransactions
?What is (CTQ) for our
customers?
?What commitment,
strategy, and resourceswill you use to climb your mountains?
Copyright Six Sigma Innovations 2000 9
MEASURE
The Approach
• Six Sigma applies statistical tools to practical problems.
• Data-driven decision making is the key.
PracticalProblem
StatisticalProblem
StatisticalSolution
PracticalSolution
Low Yield ProcessOff Target
CenterProcess
Replace WornPart
Copyright Six Sigma Innovations 2000 10
MEASURE
A Statistical Problem• Six Sigma methodology identifies processes that are off-target, and/or have a high degree of variation, and corrects the process.
USLLSL USLLSL
Variation
CenterProcess
ReduceSpread
USLLSL
On-Target
Off-Target
Copyright Six Sigma Innovations 2000 11
MEASURE
The Focus
Y
F(X)
To get results, should we focus our behavior on Y or X?
Y• Dependent• Output
• Effect
• Symptom
• Monitor
X1…..XN
• Independent• Input-process
• Cause
• Problem
• ControlIf we are so good at X, why do we constantly test and inspect Y?
Copyright Six Sigma Innovations 2000 12
MEASURE
The Cookbook 1. Select CTQ Characteristic Y
2. Define Performance Standards Y 3. Validate Measurement System Y 4. Establish Product Capability Y
5. Define Performance Objective Y 6. Identify Variation Source X
7. Screen Potential Causes. X 8. Discover Variable Relationships Vital few X 9. Establish Operating Tolerance. Vital few X
10. Validate Measurement System. Vital few X 11. Determine Process Capability. Vital few X 12. Implement Process Control System. Vital few X
Phase I
Measurement(What)
Phase II
Analysis(What, Where, Why)
Phase III
Improvement(How)
Phase IV
Control(Sustain)
Focus
Copyright Six Sigma Innovations 2000 13
MEASURE
The Vision
Copyright Six Sigma Innovations 2000 14
MEASURE
IDEAS
SIX SIGMATools & Tactics
What makes Six Sigma Essential?
Success
Copyright Six Sigma Innovations 2000 15
MEASURE
Successful Deployment of Six Sigma at Any Company is like a Three-Spoke Wheel:
CEO
Champions
BlackBelts
Remove One of the Spokes...
…and theProgram Will Fail.
Copyright Six Sigma Innovations 2000 16
MEASURE
The 1st Spoke is the CEO
We Need Improvements!
Six Sigma will allow us to make the changes faster and
more efficiently!
Copyright Six Sigma Innovations 2000 17
MEASURE
The 2nd Spoke is the Champion or Sponsor
Sponsors remove barriers to improvement projects.
Copyright Six Sigma Innovations 2000 18
MEASURE
The 3rd Spoke is the Black Belt
The Black Belt Leads the Team to Completion Utilizing Tools from Six Sigma Training.
Copyright Six Sigma Innovations 2000 19
MEASURE
What’s Important?
• The Tactics Used
• The Recipe on How and When to Use the Tools.
• Document Bottom Line Savings.
Copyright Six Sigma Innovations 2000 20
MEASURE
Company Strategy
Copyright Six Sigma Innovations 2000 21
MEASURE
What is your company goal?
Management choice:
Lets run a few improvement projects.
OR
Lets achieve World Class Quality!
Copyright Six Sigma Innovations 2000 22
MEASURE
Responsibilities
CEO
All Employees Green BeltsManagement
Master Black Belts
Black Belts
Copyright Six Sigma Innovations 2000 23
MEASURE
ResourcesChampions Master Black Belts Black Belts Green Belt
QualificationsSenior Execs & Managers Techical Degree Techical Degree
Technical Degree or experience
Training Basic Skills
Advanced Six Sigma Training plus a one week "Train-the Trainer" Advanced Six Sigma Training
Basic Six Sigma Training
Duration One Week 4-1 week sessions plus 1 week 4-1 week sessions 1 week
Numbers 1 per site 1per 30 Black Belts 1 per 100 employees1 per 20 employees
Large Scale Deployment Requirements
Sponsors Master Black Belts - Consultants Black Belt / Green Belts
QualificationsSenior Execs & Managers
Certified Black Belts. Years of experience in implementation mentoring and instructing
Some technical ability. People skills. Desire to make a difference.
Training
Welcome to audit classses. Must be involved with projects. N/A
Application of Advanced Six Sigma Skills
DurationFrom now on… N/A 4 1/2 week sessions
Numbers
1 per department or business unit. N/A
Depending on company structure
Strategy for Small to Mid-Sized Scale Business
Copyright Six Sigma Innovations 2000 24
MEASURE
Initiate Change
• First we fix our problems.– Buy-in and follow-through.– Not just another project.– Get everyone thinking “outside of the box!”
• Re-design our processes.– Build six sigma quality into processes.
Copyright Six Sigma Innovations 2000 25
MEASURE
Shift from CTQ’s to a Few Vital Metrics
• As we realize our mistakes we can measure the X’s and not the Y’s.
• Normalize process capabilities.
• One common set of metrics to monitor the business.
Copyright Six Sigma Innovations 2000 26
MEASURE
Linking Company and Customer Needs
Customer Company
QualityLow Price
Quick Delivery
Market ShareIncreased Volume
Copyright Six Sigma Innovations 2000 27
MEASURE
How do we get Started?
• Executive Decision.
• Allocate Resources.
• Decide on “1st Wave” of Training.
• Execute “In-House” Training.
• Run projects.
• Measure Results.
Copyright Six Sigma Innovations 2000 28
MEASURE
The Tools
Copyright Six Sigma Innovations 2000 29
MEASURE
Measure Phase• Understand Environment
- Establish key contacts
- Tour process
- Identify process owner
- Identify team members.
• Bound the Project
• Identify Customer Requirements- Identify additional data Needs
• Create Process Map
Copyright Six Sigma Innovations 2000 30
MEASURE
Measure Phase• Define performance standards
- Gather / Pareto data
- Review Historical data
• Evaluate measurement system- Gage R&R
• Establish Product Capability- Calculate DPU
- Calculate Z st and Zlt
• Present results to Champions
and Operational Leaders
Copyright Six Sigma Innovations 2000 31
MEASURE
Analyze Phase
• Define performance objective for “Y”.
• Process Map– Identify variation sources.
• Identify X’s– Cause & Effect Diagram
Copyright Six Sigma Innovations 2000 32
MEASURE
Analyze Phase• Analyze data.
– Apply quality tools– Perform Hypothesis Tests.
• t-Tests• ANOVA
• Regression • Identify Vital X’s (Top 5)• Define additional data needs.• Present Results.
Copyright Six Sigma Innovations 2000 33
MEASURE
Improve Phase
• Review process map
• Develop new process flow
• Screen Potential Causes
• Identify Root Causes of variation
• Establish Operating Tolerances
• Identify Improvement Actions and Implementation Plan
Copyright Six Sigma Innovations 2000 34
MEASURE
Improve Phase• Develop Risk Assessment / Risk Abatement Plan
• Obtain buy-in / support for improvement actions
• Implement Improvements
• Collect & analyze data to validate improvement
• Communicate Improvements
• Present results to Champions and Operational Leaders
Copyright Six Sigma Innovations 2000 35
MEASURE
Control Phase• Issue Revised QCWIs /procedures where
applicable
• Revalidate Cause & Effect of X’s to Achieve Y’s
• Determine Process Capability
• Implement Control System
• Identify Follow-up Action Plan and Individuals Responsible
Copyright Six Sigma Innovations 2000 36
MEASURE
Control Phase
• Identify Opportunities for Standardization
• List Best Practices and Identify Lessons Learned
• Communicate Push leverage opportunities to process owners
• Hand off project to Process Owner
• Present results to Champions and Operational Leaders
Copyright Six Sigma Innovations 2000 37
MEASURE
Six Sigma Black Belt Project
Reduction of PressDowntime Due to Maintenance
May 11, 1998
Copyright Six Sigma Innovations 2000 38
MEASURE
695 400 485 575146514901660172524309677
3.4 1.9 2.4 2.8 7.1 7.2 8.1 8.411.847.0
100.0 96.6 94.7 92.3 89.5 82.4 75.2 67.1 58.8 47.0
20000
10000
0
100
80
60
40
20
0
Defect
MinutesPercentCum %
Per
cent
Min
utes
of D
ownt
ime
Pareto of Maintenance Downtime
Copyright Six Sigma Innovations 2000 39
MEASURE
Copyright Six Sigma Innovations 2000 40
MEASURE
1106010
700
600
500
400
300
200
100
0
Observation
Min
utes
of D
ownt
ime
0.9999 0.0001 7.000078.333361.0000
0.9918 0.008211.000059.9831
47.0000
Approx P-Value for Oscillation:Approx P-Value for Trends:Longest run up or down:Expected number of runs:
Number of runs up or down:
Approx P-Value for Mixtures:Approx P-Value for Clustering:Longest run about median:Expected number of runs:
Number of runs about median:
Run Chart for E.Manipulator Downtime by Day
3-28-98 to 4-13-9813day run fromShort Term Capability
Long Term Short Term
DPO=0.0953 DPO=0.0106Zlt=1.33 Zst=2.30
Copyright Six Sigma Innovations 2000 41
MEASURE
0 0 0
95351
0
20000
40000
60000
80000
100000
120000
Measure Analyze Improve Control
DP
MO
LSL Actual
LSL Predicted
Copyright Six Sigma Innovations 2000 42
MEASURE
Hydraulic leaks
Gage R&R ok
Dirt in oil
Maintenance ExperiencePreventative maintenance
Inspection Travel
Outside temperature
Downtime recording
Weight of billets
MachinesMen Method
Environment Materials Measurements
Oiler?
Machine capacity
Fittings Pipes
Hoses
East Manipulator Breakdown
Oil ineffective
Loss of trained men
Pumps Hoses
Rails Valves
Copyright Six Sigma Innovations 2000 43
MEASURE
1740 1350 839 635 250 185 170 130 220
31.5 24.5 15.2 11.5 4.5 3.4 3.1 2.4 4.0
31.5 56.0 71.2 82.7 87.2 90.6 93.7 96.0 100.0
0
1000
2000
3000
4000
5000
0
20
40
60
80
100
DefectMinutes
PercentCum %
Perc
ent
Min
ute
s
Causes for Mechanical Breakdown
Copyright Six Sigma Innovations 2000 44
MEASURE
Electric Leaks Pump/Motor Valves
0
100
200
300
400
Subgroups
Min
ute
s
Copyright Six Sigma Innovations 2000 45
MEASURE
125 130 135 140 145
LSL USL
Process Capability Analysis for oil temp
USL
Target
LSL
Mean
Sample N
StDev (ST)
StDev (LT)
Cp
CPU
CPL
Cpk
Cpm
Pp
PPU
PPL
Ppk
PPM < LSL
PPM > USL
PPM Total
PPM < LSL
PPM > USL
PPM Total
PPM < LSL
PPM > USL
PPM Total
120.000
*
100.000
136.370
27
3.40971
3.40841
0.98
-1.60
3.56
-1.60
*
0.98
-1.60
3.56
-1.60
0.00
1000000.00
1000000.00
0.00
999999.21
999999.21
0.00
999999.22
999999.22
Process Data
Potential (ST) Capability
Overall (LT) Capability Observed Performance Expected ST Performance Expected LT Performance
ST
LT
Copyright Six Sigma Innovations 2000 46
MEASURE
Machine• Oil Temperature New oil cooling system
• Oil breakdown Change oil on a monthly basisMonitor oil analysis monthly
Methods• PM Time Increase allotted PM time to allow
for major work to be conductedManpower
• Hydraulics training Training program being built
Environment• Dirt in oil Oil filtration system to be implemented
Oil filtered by outside contractor
Variation Control
Copyright Six Sigma Innovations 2000 47
MEASURE
95,351
77,287
16,912
2,129
0
20,000
40,000
60,000
80,000
100,000
120,000
Measure Analyze Improve Control
DP
MO
Actual
Predicted
Copyright Six Sigma Innovations 2000 48
MEASURE
1/27/98 3/24/98 5/21/98 7/18/98
0
100
200
300
400
500
600
700
Date
Do
wn
tim
e
Measure Analyze Improve Control
Equipment Rebuild
ElectricalProblems
Pipe Welded
East Manipulator Downtime per Day
Copyright Six Sigma Innovations 2000 49
MEASURE
Total ScheduledProduction Time
UnrecoverableTime Loss
Total PotentialUptime
E. ManipulatorDowntime
DPU DPMO FTY P(d) Z
Short Term 12,600 4,165 8,435 90 0.0107 10,700 98.94% 0.0106 2.30
Long Term 142,260 40,772 10,1488 9,677 0.0953 95,351 90.91% 0.0953 1.33
AnalyzePhase
54,640 14,731 41,909 3,165 0.0773 77,287 92.56% 0.0740 1.44
ImprovePhase
45,170 15851 29,269 495 0.0169 16,912 98.32% 0.0167 2.13
ControlPhase
Short Term 32,400 9,115 23,285 20 0.0009 859 99.91% 0.0009 3.14
Long Term 99,240 29,425 69,815 235 0.0033 3,366 99.66% 0.0033 2.71