52
Iden%fy Quality Needs U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org www.build4scale.org Regula’on, Cer’fica’on, and Industry Standards Module 6B Iden%fy Quality Needs

Regula’on, Cer’fica’on, and Industry Standards background: o Locaon pins for work-holding devices are ground to a diameter ... Soluon A – Determine % scrap and rework (cont.)

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Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org www.build4scale.org

Regula'on,Cer'fica'on,andIndustryStandardsModule6BIden%fyQualityNeeds

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

2

Mo'va'on

oYourbankruptcymaybeonebigqualityfailureaway!o Itiskeytoestablishyourqualityplanearlyonduringbetates%ngtoavoidtheunexpectedduringscaling

oHowtogetaproductrightthefirst%meandevery%medependsuponacapableprocess

Example:2014GeneralMotorsigni%onswitchrecall.Theactualcostoftheigni%onswitchwasonlyafewcents,butitsqualityfailurewasresponsibleformillionsofvehiclerecallscos%ngbillionsofdollarstothecompany

Whyisthismoduleimportant?

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

3

Mo'va'on

oVoiceofthecustomer:amarket-researchtechniquethatproducesadetailedsetofcustomerwantsandneeds,organizedintoahierarchicalstructure,andpriori%zedbyrela%veimportanceandsa%sfac%onwithcurrentalterna%ves

oYouneedtoknowwhatothersaredoingtostaycompe%%veinthemarketplace(Thatiscalled“benchmarking”or“reverseengineering”dependinguponthecontext)

Whyisthismoduleimportant?(cont.)

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

4

ModuleOutline

oLearningobjec%vesoWhatthismoduleaddressesoWheredoesthisfitintheoverallProductDevelopment(PD)process?

oProcesscapabilityanalysis— Determiningcapabilityofyourprocessforscale-up

oSixsigmaprocess-improvementmethodology— NutsandboltsofDefine,Measure,Analyze,ImproveandControl(DMAIC)phaseswithsomeexamplesofqualitytools

oBenchmarkingquality— Voiceofthemarketandunderstandingyourcompe%%on

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

5

LearningObjec'ves

oLO1.Analyzedatatodetermineprocesscapabili%esoLO2.ApplytheSixSigmaprocesstoqualityproblemsoLO3.Iden%fycri%calqualityneedsthroughuseofbenchmarking

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

6

WhatThisModuleAddresses

oQualityplanningduringbetates%ngtoensurethatyouhaveacapableprocesstoproduceyourproductwhenyoudosoatscale

oAnextensivediscussionofseveralwaystostudyandanalyzethecapabilityofaproduc%onprocess

oAnexplana%onoftheSixSigmaquality-improvementmethodologyandmetrics

oWhattobenchmarkandhowbenchmarkingcanhelpyoucompareyourproductqualitywiththatofyourcompe%tors

oBusinessprac%cesofyourcompe%tors,andwhatyoucanlearnfromtheirproductsandprocessestoimproveyourcompe%%venessinthemarketplace

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

7

WhatThisModuleAddresses

oProcesscapabilityanalysiscanbehelpfulthroughouttheproduct-developmentcycleandduringproduct-developmentac%vi%esconductedpriortomanufacturing.Itallowsyoutocomparethevariabilityofyourselectedprocesswithrespecttothedesigntolerances

oTheSixSigmaquality-improvementmethodologyisapackageofqualitytoolsandphilosophies.Itsdata-drivenimprovementcyclecanbeappliedduringanyphaseoftheproduct-developmentcycletoimproveproductqualityandreducecost.Italsoreducesthevariabilityofyourmanufacturingprocess,therebyimprovingitsoverallcapabili%esandefficiency

oUnderstandingyourcustomersandthemarketplaceprovidesthedataneededtomakeinformeddecisionsaboutdesignandmanufacturingstrategies

(cont.)

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

8

QualityPlanningWheredoesthisfitintothedevelopmentcycle?

Conceptand

FeasibilityDefini'on

ProductandProcess

Design

Implementand

ValidateProduc'onandStock

LaunchandClosure

Pre-alpha Alpha Beta Pilot Ramp Scale

PHAS

ES

BUILDS

EngineeringValidaDon

DesignValida,on

ProcessValida,on

ConceptValidaDon

8

PRODUCTDESIGNOBJECTIVESMarketResearch

DesignResearchFeasibility

DevelopmentQualifica'on

FieldReadinessLaunch

ManufacturingCapacity

MANUFACTURINGREADINESSLEVELSLevels: 109987654321

MfgDevelopmentMfgResearch

MfgCapability

Produc%on

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

9

ProcessCapability

o Processcapabilityreferstotheabilityofaprocesstoproduceaproductthatmeetsproductsrequirements(alsodefinedasdesignspecifica%ons)

o Ahighlycapableprocessproduceshighvolumeswithfewornodefects—world-classlevelsofprocesscapabilityaremeasuredbypartspermillion(ppm)defectlevels

o Aprocessisdeemed“fullycapable”ifindividualproductunitsconsistentlymeetdesignspecifica%ons

Basics

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

10

ProcessCapabilityAnalysisData

Processcapabilityanalysisdatausesinclude:o Predic%nghowwelltheprocesswillholdthedesignedtolerances

o Assis%ngproductdevelopersanddesignersinselec%ngormodifyingaprocess

o Assis%nginestablishinganintervalbetweensamplingforprocessmonitoring

o Specifyingperformancerequirementsfornewequipmento Selec%ngavendoro Planningthesequenceofproduc%onprocesseswhenthereisaninterac%veeffectofprocessesontolerances

o Reducingthevariabilityinamanufacturingprocess

Whatitisandhowtouseit

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11

o Processmean:Definedastheaverageofthesampledatacollectedfromaprocesswithrespecttothequalitycharacteris%cinques%on

o Thelowercontrollimit(LCL)andtheuppercontrollimit(UCL)accountsfortheprocessvariability

o Targetmean:Itisanaverageoflowerspecifica'onlimit(LSL)andupperspecifica'onlimit(USL)valuesspecifiedinabillofprocess

ProcessCapabilityAnalysisData

Basics

Processmean=Targetmean

LCL UCL

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12

o Thegoalistohavebothprocessmeanandtargetmeantomeetatthesamepoint

ProcessCapabilityAnalysisData

Centeredprocesses

Inotherwords,aprocessiscenteredifboththeprocessmean

andthetargetmeancoincideatthe

midpoint

Processmean=Targetmean

LCL UCL

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13

ProcessCapabilityAnalysisData

Off-centeredprocesses

Le`off-centeredprocess:Processmeanistothelejofthetargetmean,sotheprocessislikelytoproduceundersizedparts

Rightoff-centeredprocess:Processmeanistotherightofthetargetmean,sotheprocessislikelytoproduceoversizedparts

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

14

ProcessCapabilityStudies

Problembackground:o Loca%onpinsforwork-holdingdevicesaregroundtoadiameterof12.50mm(approximately½in)withatoleranceof±0.05mm

o Theprocessiscenteredatmean12.50(µ)andthedispersionis0.02mm(σ)a)  Whatpercentageoftheproductmustbescrapped,andwhat

percentagecanbereworked?b)  Howcantheprocesscenterbechangedtoeliminatethe

scrap?Whatisthereworkpercentage?

Example

12.50±0.05mm

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15

ProcessCapabilityStudiesSoluDonA–Determine%scrapandrework

Note:UsingExceltocalculatetheareaundercurve,youcancalculatetheareaunderthecurvedirectlybyusingExcelfunc%on:=norm.dist(x,mean,standard_dev,True)

Sincetheprocesscentered,thereworkpercentagewillbethesameasscrap

percentage,i.e.,0.62%

USL=μ+0.05=12.50+0.05=12.55mmLSL=μ+0.05=12.50-0.05=12.55mm

Now,foraZ-valueof-2.50,Area1=0.0062=0.62%scrap

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

16

ProcessCapabilityStudies

Note:Usually,youneedtocalculateZ-scoreforLSL(12.450mm)andUSL(12.550)andthendeterminetheprobabilityseparately.However,sincethisprocessiscentered,youcancalculatetheprobabilityforLSL,andthenusingsymmetry,calculatetheprobabilityforUSL.

SoluDonA–Determine%scrapandrework(cont.)

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17

Note:Scrapapartonlywhenitisundersizedbecauseifitisoversizedyoucanreworkittothespecifica%on.ThatmeansareaonthelejoutsideofLSLshouldbezero.Ifweuse0(ornearzero)valueforareaandcalculateZ-score,wegetz=–3.59.Now,plugthisnewZ-valueintogetthenewmean.-3.59=i.e.=12.52mm

Percentageofrework:Z==

So,Area3=0.9332Area2=AreaT-Area3=1.0000–0.9332=0.0668=6.68%Thus,theamountofreworkis6.68%Note:thepercentageofreworkissignificantlyhigherforanoff-centeredprocessthanforthatofthecenteredcaseinsolu%onA

SoluDonB–Eliminatescrap/changeprocesscenterProcessCapabilityStudies

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18

ProcessCapabilityIndex

o Mathema%cally,theprocesscapabilityismeasuredbyitsprocesscapabilityindex(Cp),whichisdefinedasfollows:

— LSLandUSLarethelowerandupperspecifica%onlimits,respec%vely

— The6σspreadisthenaturaltoleranceintervaloftheprocess

Basics

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19

o Controllimitsrepresenttheprocessspread(variability),whereasspecifica%onlimitsrepresentthedesigntolerancedefinedintheBOP

o Foraprocesstobecapable,controllimitsshouldbewellinsidethespecifica%onlimits

DifferentCapabilityProcessesExamples

LCL=LowerControlLimitUCL=UpperControlLimitLSL=LowerSpecifica%onLimitUSL=UpperSpecifica%onLimit

Acapableprocess

Abarelycapablebutuncertainprocess

Anincapableprocess

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20

CpCalcula'ons

o Thequalitycharacteris%c(thedesignspecifica%oninques%on)hasanormaldistribu%on

o Theprocessisinsta%s%calcontrolo Incaseoftwo-sidedspecifica%ons,theprocessmeaniscenteredbetweentheLSLandUSL

o Ifanyoftheaboveassump%onsarenotvalid,Cpwouldnotbeareliablemeasuretodeterminethecapabilityofaprocess

KeyassumpDons

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

21

ProcessCapabilityIndex

o Asstatedearlier,ifaprocessisnotcenteredthenCpshouldnotbeused

o Theappropriateprocesscapabilityindexforanoff-centeredprocessisCpk,whichisdefinedasfollows:

Off-centeredprocess

),min( puplpk CCC =

σµ3LSLCpl

−=

σµ

3−

=USLCpu

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

22

ProcessCapabilityIndex

o Considertwotypesofprocessesthatcanmachinethesamepart— ProcessAproducespartswithameanlengthof100mmandstandarddevia%onof3mm

— ProcessBproducespartsthathaveameanlengthof105mmandastandarddevia%on1mm(thedesignspecifica%onsforthepartsare100±10mm)

o CalculatetheCpandCpkvaluesforeachofthetwoprocessesandcheckwhethertheydifferfromoneanother

Example

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23

ProcessCapabilityIndex

o WehaveUSL=110mmandLSL=90mm

o ProcessAiscenteredbetweenthespecifica%onlimits,sotheCpandCpkvaluesarethesameforit

o ProcessBisnotcenteredbetweenthespecifica%onlimitsbecausetheprocessmean(µ)=105>100(thecenterofthespecifica%onlimits),soforB,theCpandCpkvaluesaredifferent

SoluDon

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

24

ProcessCapabilityIndex

o TheCpandCpkarebothprocesscapabilityindicesthatpredictthepoten%alcapabilityoftheprocesstomeettherequiredspecifica%ons

o TheCpcomparesthetotalpredictedprocessvaria%on(definedas±3standarddevia%ons)totheallowableprocessvaria%on(specifica%onlimits)

o TheCpkcomparestheactualprocesscenterandspreadtothenominalortargetprocesscenterandspread— Cpkisbasedonthedistancefromtheprocessmeantothenearest,andthereforetheriskiestlimit,sothesmallestvalueisalwaysselected

Summary

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25

SixSigma

SixPhases(eachhasaspecificpurposeandisdeliverable):o Defineo Measureo Analyzeo Improveo Control

Methodology

SixSigmaprocessimprovementmethodology=

DMAICmethodology

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26

SixSigma

SixSigmametrics:o Defect:anythingoutsideofcustomerspecifica%onsthatispassedontoacustomer

o Defectsperunit(DPU):numberofdefectsdiscovereddividedbynumberofunitsproduced

o Defectspermillionopportuni'es(DPMO):DPU×1,000,000÷opportuni%esforerror

o UseofDPMOallowsustobroadlydefinequalityExample:intheairlineindustry,itcoverseveryopportunityforafailuretomeetcustomerexpecta%onsrightfromini%al%cke%ngun%lbagsarereceivedajercomple%ngthejourneyo Sixsigmamethodologyrepresentsaqualitylevelofatmost3.4DPMO

Basics

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27

SixSigma

Purpose:o Establishaclearandcompellingreasonforimprovingtheprocessorproductbasedonthefollowing:— Voiceofcustomer— Stakeholderrequirements— Gapincurrentprocesscapability

Deliverable:o Chargethatincludesthecurrentobservableproblems,goalsfortheproject,andinforma%onthatwillguidetheteam

o Outlineofcustomerexpecta%on/failuredata,performancegap;clearstatementoftheperceivedproblemwrizenusingSMART

Definephase

Specific,Measurable,AXainable,Results-oriented,Timely

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28

SixSigma

Purpose:o Tofactuallyunderstandtheproblemo Collec%onofdatawillnarrowtherangeofpoten%alcauseso Uselaterinthe“Analyze”stepDeliverable—Anamendedbusinesscasethatincludes:o Flowchart:an“as-is”processchecksheetfordatacollec%ono Datacollec'on:completedanddisplayedo Costsofthecurrentprocesso Keymetrics:themeasurablequalitystandardso Performancematrix:currentprocessdetailsExamples:processstep,inputs,outputs,keysuccessfactors,performancemeasurement,andstandards/goals

Measurephase

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29

AerospaceTankQualityDefectsExample–ChecksheetforidenDfyingdefects

CHECKSHEETDEFECTDATAFOR2002-2003YTD

PartNo:TAX-41Location:BellevueStudyDate:6/5/03 2002 2003Analyst:TCB

Defect 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 TotalIncorrectdimensions 13 7 13 1 1 1 36Partsdamaged 1 3 1 2 1 10 3 2 2 7 2 34Machiningproblems 3 3 1 8 3 8 3 29Maskinginsufficient 3 6 4 3 1 17Suppliedpartsrusted 1 1 2 9 13Adhesivefailure 1 1 2 1 1 6Salt-sprayfailure 4 2 6Filmonparts 3 1 1 5Processingoutoforder 2 2 4Wrongpartissued 1 2 3Unfinishedfairing 3 3Misalignedweld 2 2Paintoutoflimits 1 1 2Voidsincasting 1 1 2Delaminatedcomposite 2 2Powderyalodine 1 1Paintdamagedbyetching 1 1Primercansdamaged 1 1Impropertestprocedure 1 1TOTAL 4 5 14 12 5 9 9 6 10 14 20 7 29 7 7 8 2 168

NumberofOccurrences

ListofD

efects

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30

SixSigma

Purpose:o Tomakesenseofallthedatagatheredinthe“Measure”phase;andtousethatdatatodiscoverareasofdelay,waste,poorquality,andhighcosts

o Toiden%fyandverifytherootcauseofaproblemDeliverable—Anamendedbusinesscasethatincludes:o Listofproblemsthatareresponsibleforthedefectsoccurringinthesystem/processinanIshikawa“fishbone”diagram

o Rootcauseanalysis(orcauseandeffectanalysis)o Paretochart(chartoffrequency)ofrootcauses

Analyzephase

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

o Acauseandeffectdiagramisdesignedtohelpworkersfocusonthecausesofaproblemratherthanthesymptoms

o Thediagramlooksliketheskeletonofafish,withtheproblembeingtheheadofthefish,majorcausesbeingtheribs,andminorcausesformingthesmallerbonesoftheribs(Therefore,itisalsoknownas“fishbone”diagram)

o Fishbonediagramsarecreatedduringbrainstormingsessions 31

AnalysisToolsCauseandeffectdiagrambasics

Category Category Category

Category Category Category

Problem(Symptom)

Poten%alCause

Poten%alCause

Poten%alCause

Poten%alCause

Poten%alCause

Poten%alCausePoten%alCause

Poten%alCause

Poten%alCause

Poten%alCause

Poten%alCausePoten%alCause

Poten%alCause

Poten%alCause

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32

Cause/Effect(Fishbone)Diagram

1.  Statetheproblemclearlyinthe“headofthefish”2.  Drawthebackboneandribs— Askthepar%cipantsinthebrainstormingsessiontoiden%fymajorcausesoftheproblemlabeledintheheadofthediagram(Ifpar%cipantshavetroubleiden%fyingmajorproblemcategories,itmaybehelpfultousematerials,machines,people,andmethodsaspossiblebones)

3.  Con%nuetofilloutthefishbonediagram,asking“Why?”abouteachproblemorcauseofaproblemun%lthediagramisfilledout—Usually,ittakesnomorethanfivelevelsofquesDoningtogettorootcauses;hence,the“Fivewhys”

4.  Viewthediagramandiden%fyrootcauses5.  Setgoalstoaddresstherootcauses

Step-by-step

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33

AerospaceTankQualityDefectsExample–Fishbonediagram

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34

AerospaceTankQualityDefectsExample– Paretochart

ListofDefects

%Con

tribu%

onofe

achde

fectto

thetotal#defects

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35

SixSigma

Purpose:o Togenerate,pilot,andimplementviablesolu%onsthataddresstherootcauses—thesolu%on(s)shouldhavethefollowingcharacteris%cs:— Effec%veinperformingcorrec%veac%on— Financiallyfeasibletocreateafavorablecost/benefitposi%on— Acceptablebyotherpartsoftheorganiza%on.

Deliverable—Anamendedbusinesscasethatincludes:o Alterna%vesolu%onsandtheirrelatedcost-benefitanalysis(CBA)o Pilottes%ngofhigh-impact,cost-efficientsolu%onso A“shouldbe”processmap/flowchartandcostmodelbasedonapilot

Improvephase

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36

TypesofImprovements

o Simplifica%onofprocesso Changesinstaffingscheduleso Improvedtrainingo Changesinlevelofstaffingo Systemupgradesandreprogrammingo Upgradedequipmento Newmanagementtechniques

Examples-Generic

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37

SixSigma

Purpose:o TosustainandcontrolfutureprocessperformanceDeliverable—Anamendedbusinesscasethatincludes:o Adocumentedmeasuringandmonitoringplanformaintainingstandardizedprocessesandprocedures,andreducedcosts

o Adocumentedtransferofownershiptotheprocessownerandmanagementteam

o Whycustomerscanexpectreliabilityandhowtheimprovementwillbesustainedover%me

Controlphase

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38

ControlHand-Offs

Documentthefollowing:o Newqualitystandardso Responsibilityand%melineforfullimplementa%ono Methodstomeasurecustomersa%sfac%ono Methodstomeasureprocesscontrolandcapabilityo Expecta%onsforprogressreports

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39

Benchmarking

Voiceofthemarket:o Customersarenottheonlysourceofinforma%onaboutthemarket

o Oneofthebestsourcesofinforma%oncanbeothercompanieso Byunderstandingourcompe%tors,webegintounderstandthemarketplacebezerandwhatittakestocompetesuccessfullyinthemarketplace

Quality

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40

Benchmarking

o Benchmarkingissharingofinforma%onbetweencompaniessothatbothcanimprove

o Benchmarkingprocessinvolvesmul%pleorganiza%ons,includingabenchmarkthatyouaretryingtofollowforimprovementofyourproductorprocess

o Abenchmarkisanorganiza%onrecognizedforitsexemplaryopera%onalperformance

o TherearemanybenchmarksintheworldincludingToyotaforprocesses,Intelfordesign,Motorolafortraining,ScandinavianAirlinesforservice,andHondaforrapidproductdevelopment

o Par%estobenchmarkingrela%onships:— Theini%atorfirm(you)— Thetargetfirm(benchmark)

Process

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41

Benchmarking

Processbenchmarking:o Thegoalistoiden%fyandobservebestprac%cesonbusinessprocesses

Financialbenchmarking:o Thegoalistoperformfinancialanalysisandcomparetheresultsinanefforttoassessyouroverallcompe%%veness

Performancebenchmarking:o Allowsini%atorfirmstoassesstheircompe%%veposi%onbycomparingproductsandserviceswithtargetfirms

Types

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42

Benchmarking

Productbenchmarking:o Manyfirmsperformproductbenchmarkingwhendesigningnewproductsorupgradestocurrentproducts(ojenincludesreverseengineering)

Strategicbenchmarking:o Involvesobservinghowotherscompete(thefocusistoiden%fythemixofstrategiesthatmakefirmssuccessfulcompe%tors)

Func'onalbenchmarking:o Involvesacompanyfocusingitsbenchmarkingeffortsonasinglefunc%ontoimprovetheopera%onofthatfunc%on

Types(cont.)

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43

BenchmarkingRoadmap

Source:NaDonalAcademiesofScienceshXps://www.nap.edu/read/11344/chapter/5

DetermineWhattoBenchmark(Cri'calSuccessFactors)

DefinetheMetrics

DevelopDataCollec'onMethodology

Ins'tu'onalizeasPartofCon'nuousImprovement

Program

Iden'fyPerformanceandPrac'ceUseGap

CollectData

IntegrateBestPrac'cesintoProjectDeliveryProcesses

DevelopAc'onPlan(SelectPrac'cestoNarrowGap)

Iden'fyReasonsforDeficiencies

(RootCauseforGap)

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44

Benchmarking

Selec'oncriteria:o Oncewedeterminewhattobenchmark,thenextstepistoiden%fythebenchmarks

o Theselec%oncriteriaforabenchmarkingpartnerprimarilydependsuponthepurposeofbenchmarking

o Forproductqualityandserviceperformance,usuallyyoubenchmarkagainstdirectcompe%tors

Partners

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

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Benchmarking

Forprocessbenchmarking,youcanbenchmarkthefollowingorganiza'ons:o Internalbenchmarking(differentdepartmentsorbusinessunitswithinthesamecompany)

o Compe%torso Companiesinthesameindustrysectorwithsimilarproductandbusinesscharacteris%cs

o Companiesindifferentindustrysectorsbutwithsimilarprocesses(orderplacement,lead%memanagement,customersupportsystems,etc.)

Partners(cont.)

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

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References

o Foster,S.T.,QualityManagement.Fijhedi%on,PearsonPublica%ons,2013

o Besterfield,D.H.,QualityImprovement.NinthEdi%on,PearsonPublica%ons,2013

o Montgomery,D.C.,IntroducDontoStaDsDcalQualityControl.Seventhedi%on,WileyPublica%ons,2013

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

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ListofAcronyms

o DMAIC–Define-Measure-Analyze-Improve-Controlo MRL–ManufacturingReadinessLevelo PPM–PartsPerMilliono CL–ControlLimito LCL–LowerControlLimito UCL–UpperControlLimito SL–Specifica%onLimito LSL–LowerSpecifica%onLimito USL–UpperSpecifica%onLimit

Iden%fyQualityNeedsU.S. DEPARTMENT OF ENERGY • OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY www.build4scale.org

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ListofAcronyms

o DPU–DefectsPerUnito DPMO–DefectsPerMillionOpportuni%eso SMART–Specific-Measurable-Azainable-Results-oriented-Timely

o BOP–BillOfProcess

Glossary

Module 6D

Voice of the Customer is a term used in business and Information Technology (through ITIL, for

example) to describe the in-depth process of capturing customer's expectations, preferences

and aversions.

Benchmarking is comparing one's business processes and performance metrics to industry

bests and best practices from other companies.

Process Benchmarking is when the initiating firm focuses its observation and investigation of

business processes with a goal of identifying and observing the best practices from one or more

benchmark firms. Activity analysis will be required where the objective is to benchmark cost

and efficiency; increasingly applied to back-office processes where outsourcing may be a

consideration.

Financial Benchmarking is performing a financial analysis and comparing the results in an effort

to assess your overall competitiveness and productivity.

Performance Benchmarking allows the initiator firm to assess their competitive position by

comparing products and services with those of target firms.

Product Benchmarking is the process of designing new products or upgrades to current ones.

This process can sometimes involve reverse engineering which is taking apart competitors

products to find strengths and weaknesses.

Strategic Benchmarking involves observing how others compete. This type is usually not

industry specific, meaning it is best to look at other industries.

Functional Benchmarking is when a company will focus its benchmarking on a single function

to improve the operation of that particular function.

Six-Sigma is a set of techniques and tools for process improvement.

Pareto Chart is a type of chart that contains both bars and a line graph, where individual values

are represented in descending order by bars, and the cumulative total is represented by the

line.

Defects Per Million Oopportunities (DPMO) is a measure of process performance.

Process Validation is the analysis of data gathered throughout the design and manufacturing of

a product in order to confirm that the process can reliably output products of a determined

standard.

Design Validation is testing aimed at ensuring that a product or system fulfills the defined user

needs and specified requirements, under specified operating conditions.

Process Mean is the average of the sample data collected from a process with respect to the quality characteristic in question

Lower Control Limit (LCL) is the bottom limit in quality control for data points below the control

(average) line in a control chart. Opposite of upper control limit.

Specification Limit are boundaries or parameters that define acceptable performance for a

process expressed as a target limit as well as an upper and lower limit.

Upper Specification Limit (USL)is a value that represents the highest range of a variable. The

upper specification limit is the benchmark below which a product or service performs.

Target Mean is an average of lower specification limit (LSL) and upper specification limit (USL) values specified in a bill of process.

Qualification is either the process of qualifying for an achievement, or a credential attesting to

that achievement.

Field Readiness is the stage of development just prior to final launch. It is time to review the Pilot run and determine if there are any “game stopper” issues.

Manufacturing Capacity is the volume of products or services that can be produced by an

enterprise using current resources. Three commonly used definitions of capacity are as follows:

design capacity, effective capacity & actual output. (Repeat from 2B)

Left Off-Centered Process mean is to the left of the target mean, so the process is likely to

produce undersized parts.

Right Off-Centered Process mean is to the right of the target mean, so the process is likely to

produce oversized parts.

Defect is a physical, aesthetic, or functional attribute of a product or service that exhibits that

the product or service failed to meet one of the desired specification.

Defects Per Unit (DPU) is a metric used in Six Sigma and other process improvement

methodologies. The observed defects per unit value is used to calculate the Defects per Million

Opportunities value for a process, which in turn is used to assess the overall quality of the

process output and to determine areas in which the process can be improved.

Deliverable is a tangible or intangible good or service produced as a result of a project that is

intended to be delivered to a customer (either internal or external)

Flowchart is a type of diagram that represents an algorithm, workflow or process, showing the

steps as boxes of various kinds, and their order by connecting them with arrows.

Data Collection is the process of gathering and measuring information on targeted variables in

an established systematic fashion, which then enables one to answer relevant questions and

evaluate outcomes.

Key metric are the measurable quality standards according to six sigma standards.

Performance Metric also called KPI's (Key Performance Indicators) focuses on how the task is

being performed by measuring performance and if individual goals are being achieved. A widely

used tool to assist in determining these goals is the Balanced Scorecar re the current process

details.

Pareto Chart is a type of chart that contains both bars and a line graph, where individual values

are represented in descending order by bars, and the cumulative total is represented by the

line.

DMAIC – Define-Measure-Analyze-Improve-Control refers to a data-driven improvement cycle

used for improving, optimizing and stabilizing business processes and designs.

MRL – Manufacturing Readiness Level is a measure developed by the United States

Department of Defense (DOD) to assess the maturity of manufacturing readiness, similar to

how technology readiness levels (TRL) are used for technology readiness.

PPM – Parts Per Million is the concentration by volume of one part of a gas (or vapor), or by

weight of a liquid or solid, per million parts of air or liquid.

CL – Control Limit also known as natural process limits, are horizontal lines drawn on a

statistical process control chart, usually at a distance of ±3 standard deviations of the plotted

statistic from the statistic's mean. Control limits are used to detect signals in process data that

indicate that a process is not in control and, therefore, not operating predictably.

LCL – Lower Control Limit is the bottom limit in quality control for data points below the

control (average) line in a control chart. Opposite of upper control limit.

UCL – Upper Control Limit is a value that indicates the highest level of quality acceptable for a

product or service. The upper control limit is used in conjunction with the lower control limit to

create the range of variability for quality specifications, enabling those within the organization

to provide an optimal level of excellence by adhering to the established guidelines.

SL – Specification Limit boundaries or parameters that define acceptable performance for a

process expressed as a target limit as well as an upper and lower limit.

LSL – Lower Specification Limit is the lowest level of process performance or product quality

that is within the acceptable range defined by customer standards and measurements of

defects in the process or product itself.

USL – Upper Specification Limit is a value that represents the highest range of a variable. The

upper specification limit is the benchmark below which a product or service performs.

SMART (specific, measurable, action oriented, reasonable, timely) goal is a written statement that describes what needs to be done to work toward a specific change, ultimately creating success and improvement. Specific – Specific goals are more likely to be achieved than nonspecific goals….. BOP – Bill of Process is a best practices template for production comprised of detailed plans

explaining the manufacturing processes for a particular product. Within these plans resides in-

depth information on machinery, plant resources, equipment layout, configurations, tools, and

instructions. (Repeat from 2A)