Вы находитесь на странице: 1из 668

Certified Lean 

Six Sigma Black 
l k
Belt Book
elt ook

LEAN SIX SIGMA BELT SERIES

OpenSourceSixSigma.com
Legal Notice

INDIVIDUAL COPY

This Book is an Open Source Six Sigma™ copyrighted 
publication and is for individual use only.  This publication 
y p , y p y
may not be republished, electronically or physically y
reproduced, distributed, changed, posted to a website an 
intranet or a file sharing system or otherwise distributed in 
any form or manner without advanced written permission 
from Open Source Six Sigma.  Minitab is a Registered 
Trademark of Minitab Inc.

FBI Anti Piracy Warning: The unauthorized reproduction or 
distribution of this copyrighted work is illegal. Criminal 
copyright infringement, including infringement without 
monetary gain, is investigated by the FBI and is punishable by 
up to 5 years in federal prison and a fine of $250,000.

FFor reprint permission, to request additional copies, or to 
i t i i t t dditi l i t
request customized versions of this publication contact Open 
Source Six Sigma.

Open Source Six Sigma
Open Source Six Sigma
6200 East Thomas Road Suite 203
Scottsdale, Arizona, United States of America 85251
Toll Free:  1 800 504 4511
International: +1 480 361 9983
International: +1 480 361 9983
Email: OSSS@OpenSourceSixSigma.com
Website: www.OpenSourceSixSigma.com
Table of Contents

Page
Define Phase
Understanding Six Sigma…………………………………………..………………..….…….… 1
Six Sigma Fundamentals………………………………..…………..………………..……..…. 22
Selecting Projects……………………………………….………………………..……..……… 42
Elements of Waste……………………………………..…………...……………………………64
Wrap Up and Action Items……………………...………………………………………….……77
Define Phase Quiz……………………………..…………………………………………………83

Measure Phase
Welcome to Measure……………………………………………………………….……..….....86
Measure 86
Process Discovery………………………………………..………………………………………89
Six Sigma Statistics…………………………………..….………………………………….….138
Measurement System Analysis……………………….……………………………………....171
Process Capability ……………………………………...…………………………… ……….203
Wrap Up and Action Items …………………………………………………………………….224
Measure Phase Quiz………………………………………………………….………………..230

Analyze Phase
Welcome to Analyze……………………………………………………………………… .…..233
“X” Sifting………………………………….………………...……………………….……….….236
Inferential Statistics……………………………………………..……………..………….…….262
Introduction to Hypothesis Testing……………………………..……….…………………….277
Hypothesis Testing Normal Data Part 1………………………………..…….………………291
Hypothesis Testing Normal Data Part 2 …………………….………………………….……334
Hypothesis Testing Non-Normal Data Part 1………………….….…………………….……364
1 364
Hypothesis Testing Non-Normal Data Part 2……………….…………….………………….390
Wrap Up and Action Items …………………………………………..………………....……..409
Analyze Phase Quiz…………………………………………….………………………………415

Improve Phase
Welcome to Improve……………………………………..………………………………...…..418
Process Modeling Regression……………………………………………………………….421
Advanced Process Modeling………………………….……………………………………….440
Designing Experiments…………………………………………………………………………467
Experimental Methods………………………………………….………………………………482
Full Factorial Experiments…………………………………………………………………..…497
Fractional Factorial Experiments……………………………………………………….……..526
Wrap Up and Action Items…………………………..…………………………………………546
Improve Phase Quiz……………………………………………………………………………552

Control Phase
Welcome to Control………………………………………..……………………………………556
Lean Controls……………………………………………………………………………………559
Defect Controls……………………………………………………………………….…………574
Statistical Process Control…………………………….……………………………………….586
Six Sigma Control Plans………………………………..………………………………………626
Wrap Up and Action Items…………………….…………………………………………….…649
Control Phase Quiz…………………………...………………………………………..……….659

Appendix – Quiz Answers

Glossary

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


1

Lean Six Sigma


Black Belt Training

Define Phase
Understanding Six Sigma

Welcome to Open Source Six Sigma’s Black Belt Training Course.

This course has been designed to build your knowledge and capability to improve the
performance of processes and subsequently the performance of the business of which you are a
part. The focus of the course is process centric. Your role in process performance improvement
is to be through the use of the methodologies of Six Sigma, Lean and Process Management.

By taking this course you will have a well rounded and firm grasp of many of the tools of these
methodologies. We firmly believe this is one of the most effective classes you will ever take and it
is our commitment to assure that this is the case.

We begin in the Define Phase with “Understanding Six Sigma”.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


2

Understanding Six Sigma


Overview

The core fundamentals


of this phase are
Definitions, History, Understanding Six Sigma
Strategy, Problem
Solving and Roles and Definitions
Responsibilities.
History
We will examine the
meaning of each of Strategy
these and show you
how to apply them. Problem Solving
Roles & Responsibilities

Six Sigma Fundamentals

Selecting Projects

Elements of Waste

Wrap Up & Action Items

What is Six Sigma…as a Symbol?

Variation is our enemy. Our


σ sigma is a letter of the Greek alphabet. customers, both internal and
external, have expectations
– Mathematicians use this symbol to signify standard relative to the deliverables from
deviation, an important measure of variation. our pprocesses. Variation from
– Variation designates the distribution or spread those expectations are likely
about the average of any process. dissatisfiers to them. Much of
this course is devoted to
identifying, analyzing and
eliminating variation. So let’s
begin to understand it.

The Blue Line designates


narrow variation while the
Orange Line designated wide
The variation in a process refers to how tightly all the variation.
various outcomes are clustered around the average. No
Obviously the less variation
process will produce the EXACT same output each time.
within a process the more
predictable the p
p process is,,
assuming the mean is not moving all over the place. If you took the height of everyone in the class would
you expect a large variation or narrow variation?

What if you had a few professional basketball player in the room, would that widen or narrow the variation?

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


3

Understanding Six Sigma

What is Six Sigma…as a Value?


Sigma is a measure of
deviation. The
mathematical calculation
for the Standard Deviation
of a population is as
shown.
ƒSigma can be used
interchangeably with the
statistical term Standard By definition, the Standard Deviation is the distance
Deviation.
between the mean and the point of inflection on the
ƒStandard Deviation is the
average distance of data normal curve.
points away from the
Mean in a distribution. Point of Inflection

When measuring the


sigma value of a process
we want to obtain the
distance from the Mean to
the closest specification
limit in order to determine
how many Standard
Deviations we are from
th mean….our Sigma
the Si
Level!
The Mean being our optimal or desired level of performance.

What is Six Sigma…as a Measure?

The probability of creating a defect can be estimated and translated into a


“Sigma” level.

-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6

The higher the sigma level, the better the performance. Six Sigma refers to a process having six
Standard Deviations between the average of the process center and the closest specification limit or
service level
level.
This pictorial depicts the percentage of data which falls between Standard Deviations within a Normal
Distribution. Those data points at the outer edge of the bell curve represent the greatest variation in our
process. They are the ones causing customer dissatisfaction and we want to eliminate them.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


4

Understanding Six Sigma

Measure

“Sigma Level” is:


– A statistic used to describe the performance of a process relative to the
specification limits
– The number of Standard Deviations from the mean to the closest
specification limit of the process
USL
6 Sigma

5 Sigma

4 Sigma

3 Sigma

2 Sigma

1 Sigma

The likelihood of failure decreases as the number of Standard Deviations


that can be fit between the Mean and the nearest spec limit increases.

Each gray dot represents one Standard Deviation


Deviation. As you can see the Normal Distribution is
tight.
Said differently, if all the outputs of our process fall within six Standard Deviations from the
Mean, we will have satisfied our customers nearly all the time. In fact, out of one million
customer experiences, only 3.4 will have experienced a defect.

What is Six Sigma…as a Metric?


Each of these metrics serves a different purpose and may be used at different levels in the
organization to express the performance of a process in meeting the organization’s (or customer’s)
requirements. We will discuss each in detail as we go through the course.

ƒ Defects 20
ƒ Defects per unit (DPU) 18
ƒ Parts per million (PPM) 16
ƒ Defects per million opportunities (DPMO) 14

ƒ Rolled Throughput yield (RTY) 12

ƒ First Time Yield (FTY) 10

ƒ Sigma (s) 8
0 20 40 60 80 100

Above are some key metrics used in Six Sigma. We will discuss each in detail as we go through the
course.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


5

Understanding Six Sigma

What is Six Sigma…as a Benchmark?


This data represents the sigma level of companies
companies. As you can see less than 10% of companies
are at a 6 sigma level!

Yield PPMO COPQ Sigma

99.9997% 3.4 <10% 6 World Class Benchmarks

99.976% 233 10-15% 5 10% GAP

99.4% 6,210 15-20% 4 Industry Average

93% 66,807 20-30% 3 10% GAP

65% 308 537


308,537 30 40%
30- 2 Non Competitive

50% 500,000 >40% 1

Source: Journal for Quality and Participation, Strategy and Planning Analysis

W ha t does 2 0 - 4 0 % of Sa les represent to your O rga niza tion?

What is Six Sigma…as a Method?

The Six Sigma Methodology is made up of five stages: Define, Measure, Analyze, Improve and
Control.
Each has highly defined steps to assure a level of discipline in seeking a solution to any variation or
defect present in a process.

DM AIC provides the m ethod for a pplying the Six


Sigma philosophy in order to im prove processes.

– Define - the business opportunity

– Measure - the process current state

– Analyze - determine root cause or Y= f (x)

– Improve - eliminate waste and variation

– Control - evidence of sustained results

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


6

Understanding Six Sigma

What is Six Sigma…as a Tool?

Six Sigma conta ins a broa d set of tools, interw oven


in a business problem-solving methodology. Six
Sigma tools a re used to scope a nd choose projects,
design new products a nd processes im prove current
processes, decrea se dow ntime a nd im prove
customer response time.

- Six Sigma has not created new tools, it has simply


organized a variety of existing tools to create flow.

Customer Value
Management Product Process Process System Functional
Responsiveness,
Cost, Quality,
= EBIT, (Enabler) , Design , Yield , Speed , Uptime , Support
Delivery

Six Sigma has not created new tools. It is the use and flow of the tools that is important. How they
are applied makes all the difference.

Six Sigma is also a business strategy that provides new knowledge and capability to employees so
they can better organize the process activity of the business, solve business problems and make
better decisions.
decisions Using Six Sigma is now a common way to solve business problems and remove
waste resulting in significant profitability improvements. In addition to improving profitability,
customer and employee satisfaction are also improved.

Six Sigma is a process measurement and management system that enables employees and
companies to take a process oriented view of the entire business. Using the various concepts
embedded in Six Sigma, key processes are identified, the outputs of these processes are
prioritized, the capability is determined, improvements are made, if necessary, and a management
structure is put in place to assure the ongoing success of the business
business.

People interested in truly learning Six Sigma should be mentored and supported by seasoned
Belts who truly understand how Six Sigma works.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


7

Understanding Six Sigma

What is Six Sigma…as a Goal?


To give you a better example the concept of the sigma level can be related to hanging fruit. The higher
the fruit, the more challenging it is to obtain. And, the more sophisticated the tools necessary to obtain
them.

Sw eet Fruit
Design for Six Sigma
5+ Sigma

Bulk of Fruit
Process
3 - 5 Sigma Cha ra cteriza tion
a nd O ptimiza tion

Low Ha nging Fruit


3 Sigma Ba sic Tools of
Problem Solving

Ground Fruit
1 - 2 Sigma Simplify a nd
St nda
Sta d rdize
di

What is Six Sigma…as a Philosophy?

General Electric: First, what it is not. It is not a secret society, a slogan or a cliché. Six Sigma is
a highly di i li d process that
hi hl disciplined th t helps
h l us ffocus on d developing
l i and dd
delivering
li i near-perfectf t products
d t
and services. The central idea behind Six Sigma is that if you can measure how many "defects" you
have in a process, you can systematically figure out how to eliminate them and get as close to "zero
defects" as possible. Six Sigma has changed the DNA of GE — it is now the way we work — in
everything we do and in every product we design.

Honeywell: Six Sigma refers to our overall strategy to improve growth and productivity as well as
a measurementt off quality.
lit As
A a strategy,
t t Six
Si Sigma
Si is
i a way for
f us to
t achieve
hi performance
f
breakthroughs. It applies to every function in our company, not just those on the factory floor. That
means Marketing, Finance, Product Development, Business Services, Engineering and all the other
functions in our businesses are included.

Lockheed Martin: We’ve just begun to scratch the surface with the cost-saving initiative called Six
Sigma and already we’ve generated $64 million in savings with just the first 40 projects. Six Sigma
uses data gathering and statistical analysis to pinpoint sources of error in the organization or products
and determines precise ways to reduce the error.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


8

Understanding Six Sigma

History of Six Sigma

Simplistically, Six
Simplistically
• 1 9 8 4 Bob Ga lvin of M otorola edicted the first objectives of
Sigma was a
Six Sigma
program that was
– 1 0 x levels of improvem ent in service a nd qua lity by 1 9 8 9
generated around
targeting a process – 1 0 0 x improvement by 1 9 9 1
Mean (average) six – Six Sigma ca pa bility by 1 9 9 2
Standard Deviations – Bill Sm ith, a n engineer from M otorola , is the person credited a s
away from the the fa ther of Six Sigm a
closest specification • 1984 T Tex a s IInstruments
t t a ndd ABB W orkk closely
l l w ith
limit. M otorola to further develop Six Sigma
• 1 9 9 4 Applica tion ex perts lea ve M otorola
By using the process
• 1 9 9 5 AlliedSigna l begins Six Sigma initia tive a s directed by
Standard Deviation
La rry Bossidy
to determine the
location of the Mean – Ca ptured the interest of W a ll Street
the results could be • 1 9 9 5 Genera l Electric, led by Ja ck W elsh, bega n the most
predicted at 3.4 w idesprea d underta k ing of Six Sigma even a ttem pted.
defects per million by • 1 9 9 7 To present Six Sigma spa ns industries w orldw ide
the use of statistics.

There is an allowance for the process Mean to shift 1.5 Standard Deviations. This number is another
academic and esoteric controversial issue not worth debating. We will get into a discussion of this
number later in the course.

The Phase Approach of Six Sigma


Six Sigma created a realistic and quantifiable goal in terms of its target of 3.4 defects per million
operations. It was also accompanied by a methodology to attain that goal.
That methodology was a problem solving strategy made up of four steps: measure, analyze,
improve and control.
When GE launched Six Sigma they improved the methodology to include the Define Phase Phase.

Control Im prove Ana ly ze M ea sure Define

M O TO RO LA GEN ERAL ELECTRIC

Today the Define Phase is an important aspect to the methodology. Motorola was a mature culture
from a process perspective and didn’t necessarily have a need for the Define Phase.
M t organizations
Most i ti today
t d DEFINITELY need
d it tto properly
l approach
h iimprovementt projects.
j t
As you will learn, properly defining a problem or an opportunity is key to putting you on the right
track to solve it or take advantage of it.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


9

Understanding Six Sigma

DMAIC Phases Roadmap


Cha mpion

Process
O w ner

Identify Problem Area


/

Determine Appropriate Project Focus


Define

Estimate COPQ

Charter Project
M ea sure

Assess Stability, Capability, and Measurement Systems

Identify and Prioritize All X’s


Ana lyze

Prove/ Disprove Impact X’s Have On Problem


Improve
e

Id if Prioritize,
Identify, Pi i i S
Select
l S
Solutions
l i C
Controll or Eli
Eliminate
i X’
X’s Causing
C i P Problems
bl

Implement Solutions to Control or Eliminate X’s Causing Problems


Control

Implement Control Plan to Ensure Problem Does N ot Return

Verify Financial Impact

This roadmap provides an overview of the DMAIC approach.

Define Phase Deployment

Here is a more granular Business Case


Selected
look of the Define
Phase. N otify Belts and Stakeholders

This is what you will


Create High-Level Process Map
later learn to be a Level
2 Process Map. Determine Appropriate Project Focus
(Pareto, Project Desirability)

Define & Charter Project


(Problem Statement
Statement, Objective
Objective, Primary Metric
Metric, Secondary Metric)

N Estimate COPQ

Approved
Project Recommend Project Focus
Focus
Y

Create Team

Charter Team

Ready for Measure

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


10

Understanding Six Sigma

Define Phase Deliverables

Listed below are the type of Define Phase deliverables that will be reviewed by this course.

By the end of this course, you should understand what would be necessary to provide these
deliverables in a presentation.

ƒ Charter Benefits Analysis


ƒ Team Members (Team Meeting Attendance)
ƒ Process Map – high level
ƒ Primary Metric
ƒ Secondary Metric(s)
ƒ Lean Opportunities
ƒ Stakeholder Analysis
ƒ Project Plan
ƒ Issues and Barriers

Six Sigma Strategy


Six Sigma places the emphasis on the Process
– Using a structured, data driven approach centered on the customer Six Sigma can resolve
business problems where they are rooted, for example:
ƒ Month end reports
ƒ Capital
C it l expenditure
dit approvall
ƒ New hire recruiting

Six Sigma is a Breakthrough Strategy

– Widened the scope of the definition of quality


ƒ includes the value and the utility of
th product/service
the d t/ i to
t both
b th th
the
company and the customer.

Success of Six Sigma depends on the extent of


transformation achieved in each of these levels.

Six Sigma as a breakthrough strategy to process improvement. Many people mistakenly


assume that Six Sigma only works in manufacturing type operations. That is categorically
untrue. It applies to all aspects of either a product or service based business.

Wherever there are processes, Six Sigma can improve their performance.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


11

Understanding Six Sigma


Conventional Strategy
Conventional definitions of quality focused on conformance to standards.

Requirement Requirement
or or
LSL
Target USL

Bad Good Bad

Conventional strategy was to create a product or service that met certain specifications.
ƒ Assumed that if products and services were of good quality then their
performance standards were correct.
ƒ Rework was required to ensure final quality.
ƒ Efforts were overlooked and unquantified (time, money, equipment
usage, etc).
The conventional strategy was to create a product or service that met certain specifications. It was
assumed that if products and services were of good quality, then their performance standards were
correct irrespective of how they were met.
Using this strategy often required rework to ensure final quality or the rejection and trashing of some
products and the efforts to accomplish this “inspect in quality” were largely overlooked and un-
quantified.
You will see more about this issues when we investigate the Hidden Factory.
Problem Solving Strategy

The Problem Solving M ethodology focuses on:


• Understanding the relationship between independent variables
and the dependant variable.
• Identifying the vital few independent variables that effect the
dependant variable.
• Optimizing the independent variables so as to control our
dependant variable(s).
• Monitoring the optimized independent variable(s).
There a re m a ny ex a m ples to describe dependa nt a nd
independent rela tionships.
• W e describe this concept in terms of the equation:
• This equation is also commonly referred to as a transfer function

Y=f
Y f ((Xi)
This sim ply sta tes tha t Y is a function of the
X ’ s. In other w ords Y is dicta ted by the X ’ s.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


12

Understanding Six Sigma

Problem Solving Strategy (contd)

Y = f(x) is a key concept that you must fully understand and remember
remember. It is a fundamental principle
to the Six Sigma methodology. In its simplest form it is called “cause and effect”. In its more robust
mathematical form it is called “Y is equal to a function of X”. In the mathematical sense it is data
driven and precise, as you would expect in a Six Sigma approach. Six Sigma will always refer to an
output or the result as a Y and will always refer to an input that is associated with or creates the
output as an X.

Another way of saying this is that the output is dependent on the inputs that create it through the
blending that occurs from the activities in the process. Since the output is dependent on the inputs
we cannot directly control it, we can only monitor it.

Example

Y f (Xi)
Y=f
W hich process va ria bles (ca uses) ha ve critica l impa ct on
the output (effect)?

Crusher Yield = f ( Feed, Speed,Material


Type , Wear , Lubricant )
Tool

Time to Close = f (Balance


Trial
B l ,A
Correct
Accounts
t ,A
Sub
Accounts
t ,
Credit
M
Memos ,
Entry
Mistakes,X ) n
Applied

If we are so good at the X’s why are we constantly


testing and inspecting the Y?

Y=f(x) is a transfer function tool to determine what input variables (X’s) affect the output responses
(Y’s). The observed output is a function of the inputs. The difficulty lies in determining which X’s
are critical to describe the behavior of the Y’s.

The X’s determine how the Y performs.

In the Measure Phase we will introduce a tool to manage the long list of input variable and their
relationship to the output responses. It is the X-Y Matrix or Input-Output Matrix.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


13

Understanding Six Sigma

Y=f(X) Exercise

Exercise:

Consider establishing a Y = f(x) equation for a


simple everyday activity such as producing a
cup of espresso. In this case our output or Y is
espresso.

Espresso =f ( X1 , X , X , X , X )
2 3 4 n

Notes

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


14

Understanding Six Sigma

Six Sigma Strategy

W e use a va riety of Six Sigma


tools to help sepa ra te the “ vita l (X1)
few ” va ria bles effecting our Y (X10) (X4)
from the “ trivia l ma ny.”
Some processes conta in ma ny, (X7) (X8)
ma ny va ria bles. How ever, our
Y is not effected equa lly by a ll
of them. (X3)
(X5)
By focusing on the vita l few w e
insta ntly ga in levera ge. (X9)
Archimedes
A hi d sa
Archimedes said:
id ““ Give
id: Gi me
Give me aa lever
lever
l big
bi enough
big h aand
enough nd
d
fulcrum
fulcrum on
on w
w hich
hich to
to pla
place
ce it,
it, aand
nd II sha
shallll move
move the
the
w
w orld.”
orld.”

(X6)
(X2)

As you go through the application of DMAIC you will have a goal to find the root causes to the
problem you are solving. Remember that a vital component of problem solving is cause and effect
thinking or Y=f(X). To aid you in doing so, you should create a visual model of this goal as a funnel -
a funnel that takes in a large number of the “trivial many contributors,” and narrows them to the “vital
few contributors
contributors” by the time they leave the bottom
bottom.

At the top of the funnel you are faced with all possible causes - the “vital few” mixed in with the
“trivial many.” When you work an improvement effort or project, you must start with this type of
thinking. You will use various tools and techniques to brainstorm possible causes of performance
problems and operational issues based on data from the process. In summary, you will be applying
an appropriate set of “analytical methods” and the “Y is a function of X” thinking, to transform data
into the useful knowledge needed to find the solution to the problem. It is a mathematical fact that 80
percent of a problem is related to six or fewer causes
causes, the X’s.
X’s In most cases it is between one and
three.

The goal is to find the one to three Critical X’s from the many potential causes when we start an
improvement project. In a nutshell, this is how the Six Sigma methodology works.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


15

Understanding Six Sigma

Breakthrough Strategy

Ba d 66-Sigm
-Sigmaa
Brea k through UCL
UCL
Brea k through
Perforrma nce

O ld Sta nda rd
LCL
LCL

UCL
UCL
N ew Sta nda rd
LCL
LCL
Good

Time Juran’s Quality Handbook by Joseph Juran

By utilizing the DMAIC problem solving methodology to identify and optimize the vital few variables we
will realize sustainable breakthrough performance as opposed to incremental improvements or, even
worse, temporary and non-sustainable improvement..
The image above shows how after applying the Six Sigma tools, variation stays within the specification
limits.

VOC, VOB, VOE

The
foundation of
Six Sigma
VO C is Customer Driven
requires
F
Focus on the
th
voices of the VO B is Profit Driven
Customer, the
Business, and
the Employee
which
VO E is Process Driven
provides:
ƒ Awareness of the needs that are critical to the quality (CTQ) of our products and
services
ƒ Identification of the gaps between “what is” and “what should be”
ƒ Identification of the process defects that contribute to the “gap”
ƒ Knowledge of which processes are “most broken”
ƒ Enlightenment as to the unacceptable costs of poor quality (COPQ)
Six Sigma puts a strong emphasis on the customer because they are the ones assessing our performance
and they
y respond
p byy either continuing
g to p
purchase our p
products and services or….by y NOT!
So, while the customer is the primary concern we must keep in mind the Voice of the Business – how do we
meet the business’s needs so we stay in business? And we must keep in mind the Voice of the Employee -
how do we meet employees needs such that they remain employed by our firm and remain inspired and
productive?

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


16

Understanding Six Sigma

Six Sigma Roles and Responsibilities


There are many roles and responsibilities for successful implementation of Six Sigma
Sigma.

MBB
ƒ Executive Leadership
ƒ Champion/Process Owner
Black Belts ƒ Master Black Belt
ƒ Black Belt
ƒ Green Belt
Green Belts ƒ Yellow Belt

Yellow Belts
Just like a winning sports team, various people who have specific positions or roles have defined
responsibilities. Six Sigma is similar - each person is trained to be able to understand and perform the
responsibilities of their role. The end result is a knowledgeable and well coordinated winning business
team.
The division of training and skill will be delivered across the organization in such a way as to provide a
specialist: it is based on an assistant structure much as you would find in the medical field between a
Doctor, 1st year Intern, Nurse, etc. The following slides discuss these roles in more detail.
In addition to the roles described herein, all other employees are expected to have essential Six Sigma
skills for process improvement and to provide assistance and support for the goals of Six Sigma and the
company.
Six Sigma has been designed to provide a structure with various skill levels and knowledge for all
members of the organization. Each group has well defined roles and responsibilities and communication
links. When all individuals are actively applying Six Sigma principles, the company operates and performs
at a higher level
level. This leads to increased profitability
profitability, and greater employee and customer satisfaction
satisfaction.
Executive Leadership
Not all Six Sigma deployments are driven from the top by executive leadership. The data is clear,
however, that those deployments that are driven by executive management are much more successful
than those that are not.
ƒ Makes decision to implement the Six Sigma initiative and develop accountability
method
ƒ Sets meaningful goals and objectives for the corporation
ƒ Sets performance expectations for the corporation
ƒ Ensures continuous improvement in the process
ƒ Eliminates barriers
The executive leadership owns the vision for the business, they provide sponsorship and set
expectations
t ti for
f the
th results
lt ffrom Si
Six Si
Sigma. Th
They enable
bl th
the organization
i ti tto apply
l Si
Six Si
Sigma and
d th
then
monitor the progress against expectations.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


17

Understanding Six Sigma

Champion/Process Owner

Champions identify and select the most meaningful projects to work on


on, they provide guidance to the
Six Sigma Belt and open the doors for the belts to apply the process improvement technologies.

ƒ Own project selection, execution control, implementation and realization of


gains
ƒ Own Project selection
ƒ Obtain needed project resources and eliminates roadblocks
ƒ Participate
P ti i t in i allll project
j t reviews
i
ƒ Ask good questions…
ƒ One to three hours per week commitment

Champions are responsible for functional business activities and to provide business deliverables to
either internal or external customers. They are in a position to be able to recognize problem areas of
the business, define improvement projects, assign projects to appropriate individuals, review projects
and support their completion
completion. They are also responsible for a business roadmap and employee
training plan to achieve the goals and objectives of Six Sigma within their area of accountability.

Master Black Belt

MBB should be well versed with all aspects of Six Sigma, from technical applications to Project
Management. MBBs need to have the ability to influence change and motivate others.

ƒ Provide advice and counsel to Executive Staff


ƒ Provide training and support
- In class training
MBB - On site mentoring
ƒ Develop
D l sustainability
t i bilit ffor th
the b
business
i
ƒ Facilitate cultural change

A Master Black Belt is a technical expert, a “go to” person for the Six Sigma methodology. Master
Black Belts mentor Black Belts and Green Belts through their projects and support Champions. In
addition to applying Six Sigma, Master Black Belts are capable of teaching others in the practices
and tools.

Being a Master Black Belt is a full time position.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


18

Understanding Six Sigma

Black Belt

Bl k Belts
Black B lt are application
li ti experts
t andd workk projects
j t within
ithi th
the b
business.
i Th
They should
h ld bbe wellll
versed with The Six Sigma Technologies and have the ability to drive results.

ƒ Project team leader


ƒ Facilitates DMAIC teams in applying Six Sigma
methods to solve problems
Black Belts ƒ Works cross-functionally
ƒ Contributes to the accomplishment of organizational
goals
ƒ Provides technical support to improvement efforts

A Black Belt is a project team leader, working full time to solve problems under the direction of a
Champion, and with technical support from the Master Black Belt. Black Belts work on projects j
that are relatively complex and require significant focus to resolve. Most Black Belts conduct an
average of 4 to 6 projects a year -- projects that usually have a high financial return for the
company.

G
Green Belt
B lt

Green Belts are practitioners of Six Sigma Methodology and typically work within their
functional areas or support larger Black Belt Projects.

• Well versed in the definition & measurement of critical processes


- Creating Process Control Systems
ƒ Typically works project in existing functional area
Green Belts ƒ Involved in identifying improvement opportunities
ƒ Involved in continuous improvement efforts
- Applying basic tools and PDCA
ƒ Team members on DMAIC teams
- Supporting projects with process knowledge & data
collection

Green Belts are capable of solving problems within their local span of control. Green Belts remain in
their current positions, but apply the concepts and principles of Six Sigma to their job environment.
Green Belts usually address less complex problems than Black Belts and perform at least two projects
per year. They may also be a part of a Black Belt’s team, helping to complete the Black Belt project.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


19

Understanding Six Sigma

Yellow Belt

ƒ Provide support to Black Belts and Green Belts as


needed
Yellow Belts ƒ May be team members on DMAIC teams
- Supporting projects with process
knowledge and data collection
Yellow Belts participate in process management activities. They fully understand the principles of Six
Si
Sigma and
d are capablebl off characterizing
h t i i processes, solving
l i problems
bl associated
i t d with
ith th
their
i workk
responsibilities and implementing and maintaining the gains from improvements. They apply Six Sigma
concepts to their work assignments. They may also participate on Green and Black Belt projects.

The Life of a Six Sigma Belt

Training as a Six Sigma Belt can be one of the most rewarding undertakings of your career and
one of the most difficult.
You can expect to experience:

ƒ Hard work (becoming a Six Sigma Belt is not


easy)
ƒ Long hours of training
ƒ Be a change agent for your organization
ƒ Work effectively as a team leader
ƒ Prepare and present reports on progress
ƒ Receive mentoring from your Master Black Belt
ƒ Perform mentoring for your team members
ƒ ACHIEVE RESULTS!

You’re going places!

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


20

Understanding Six Sigma

Black & Green Belt Certification


To achieve certification,, Belts must::

ƒ Complete all course work:


- Be familiar with tools and their application
- Practice using tools in theoretical situations
- Discuss how tools will apply to actual projects
ƒ Demonstrate application of learning to training project:
- Use the tools to effect a financially measurable
and significant business impact through their
projects
- Show ability to use tools beyond the training We’ll be
environment
ƒ Must complete two projects within one year from beginning of training watching!
ƒ Achieve results and make a difference

ƒ Submit a final report which documents tool understanding and


application as well as process changes and financial impact for each
project

Organizational Behaviors

All players in the Six Sigma process must be willing to step up and act according to the Six Sigma
set of behaviors.
ƒ Leadership by example: “walk the talk”

ƒ Encourage and reward individual initiative

ƒ Align incentive systems to support desired behaviors

ƒ Eliminate functional barriers

ƒ Embrace “systems” thinking

ƒ Balance standardization with flexibility

Six Sigma is a system of improvement. It develops people skills and capability for the participants. It
consists of proven set of analytical tools, project-management techniques, reporting methods and
managementt methods
th d combined
bi d tto fform a powerful
f l problem-solving
bl l i and
dbbusiness-improvement
i i t
methodology. It solves problems, resulting in increased revenue and profit, and business growth.

The strategy of Six Sigma is a data-driven, structured approach to managing processes, quantifying
problems, and removing waste by reducing variation and eliminating defects.

The tactics of Six Sigma are the use of process exploration and analysis tools to solve the equation
of Y = f(X) and to translate this into a controllable practical solution.

As a performance goal, a Six Sigma process produces less than 3.4 defects per million
opportunities. As a business goal, Six Sigma can achieve 40% or more improvement in the
profitability of a company. It is a philosophy that every process can be improved, at breakthrough
levels.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


21

Understanding Six Sigma

At this point, you should be able to:

ƒ Describe the objectives of Six Sigma

ƒ Describe the relationship between variation and sigma

ƒ Recognize some Six Sigma concepts

ƒ Recognize the Six Sigma implementation model

ƒ Describe the general roles and responsibilities in Six


Sigma

You have now completed Define Phase – Understanding Six Sigma.

Notes

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


22

Lean Six Sigma


Black Belt Training

Define Phase
Six Sigma Fundamentals

Now we will continue in the Define Phase with the “Six


Six Sigma Fundamentals
Fundamentals”.

The output of the Define Phase is a well developed and articulated project. It has been correctly
stated that 50% of the success of a project is dependent on how well the effort has been defined.

There’s that Y=f(X) thinking again.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


23

Six Sigma Fundamentals


Overview
The core fundamentals
of this phase are Understa nding Six Sigm a
Process Maps, Voice of
the Customer, Cost of
Poor Quality and Six Sigm a Funda m enta ls
Process Metrics.
Process
Process M
Maaps
ps
We will examine the
meaning of each of V
Voice
i of
Voice off the
th
the Custom
C t
Custom er
er
these and show you
how to apply them. Cost
Cost of
of Poor
Poor Q
Qua
uality
lity

Process
Process M
Metrics
etrics

Selecting Projects

Elem ents of W a ste

W ra p Up & Action Item s

What is a Process?

W hy ha ve a process focus?
– So we can understand how and why work gets done
– To characterize customer & supplier relationships
– To manage for maximum customer satisfaction while utilizing
minimum resources
– To see the process from start to finish as it is currently being
performed
– Blame the process, not the people

proc• ess (pros′es)


(pros′es) n. – A repetitive
repetitive a nd systema
system atic
tic series
of steps or
or a ctivities where
where inputs are modified to achieve
inputs are modified to
a value-added
value-added output
output

What is a Process? Many people do or conduct a process everyday but do you really think of it as a
process? Our definition of a process is a repetitive and systematic series of steps or activities where inputs
are modified to achieve a value-added output.

Usually a successful process needs to be well defined and developed.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


24

Six Sigma Fundamentals

Examples of Processes

We go thru processes everyday. Below are some examples of processes. Can you think
of other processes within your daily environment?
ƒ Injection molding ƒ Recruiting staff
ƒ Decanting solutions ƒ Processing invoices
ƒ Filling vial/bottles ƒ Conducting research
ƒ Crushing ore ƒ Opening accounts
ƒ Refining oil ƒ Reconciling accounts
ƒ Turning screws ƒ Filling out a timesheet
ƒ Building custom homes ƒ Distributing mail
ƒ Paving roads ƒ Backing up files
ƒ Changing a tire ƒ Issuing purchase orders
Process Maps
Process Mapping, also called
flowcharting, is a technique to • The purpose of Process Maps is to:
visualize the tasks, activities and – Identify the complexity of the process
– Communicate the focus of problem solving
steps necessary to produce a product
or a service. The preferred method for • Process Maps are living documents and must be changed as the
describing a process is to identify it process is changed
with a generic name, show the – They represent what is currently happening, not what you think is
workflow with a Process Map and happening.
– They should be created by the people who are closest to the process
d
describe
ib itits purpose with
ith an
operational description.
Process Map
Remember that a process is a
blending of inputs to produce some
desired output. The intent of each
task, activity and step is to add value,
ct

Sta rt Step A Step B Step C Step D Finish


e
sp

as perceived by the customer, to the


In

product or service we are producing.


You cannot discover if this is the case
until you have adequately mapped the process.

There are many reasons for creating a Process Map:


- It helps all process members understand their part in the process and how their process fits into the
bigger picture.
- It describes how activities are performed and how the work effort flows, it is a visual way of standing
above the process and watching how work is done. In fact, Process Maps can be easily uploaded into
model and simulation software allowing you to simulate the process and visually see how it works.
- It can be used as an aid in training new people.
- It will show you where you can take measurements that will help you to run the process better.
- It will help you understand where problems occur and what some of the causes may be.
- It leverages other analytical tools by providing a source of data and inputs into these tools.
- It identifies many important characteristics you will need as you strive to make improvements.

The individual processes are linked together to see the total effort and flow for meeting business and
customer needs. In order to improve or to correctly manage a process, you must be able to describe it
in a way that can be easily understood. Process Mapping is the most important and powerful tool you
will use to improve the effectiveness and efficiency of a process.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


25

Six Sigma Fundamentals

Process Map Symbols

St d d symbols
Standard b l ffor process mapping
i (available in Microsoft
Office™, Visio™, iGrafx™ , SigmaFlow™ and other products):

A RECTAN GLE indicates an A PARALLELAGRAM shows


activity. Statements within the that there are data
rectangle should begin with a
verb

A DIAM O N D signifies a decision An ELLIPSE shows the start


point. Only two paths emerge from and end of the process
a decision point: N o and Yes

An ARRO W shows the A CIRCLE W ITH A LETTER O R


1 N UM BER IN SIDE symbolizes
b li
connection and direction
the continuation of a
of flow
flowchart to another page

There may be several interpretations of some of the process mapping symbols; however, just
about everyone uses these primary symbols to document processes. As you become more
practiced you will find additional symbols useful,
useful i.e.
i e reports,
reports data storage etc
etc. For now we will start
with just these symbols.

High Level Process Map

At a minimum a high
One of the deliverables from the Define Phase is a high level process
level Process Map
map, at a minimum it must include:
must include; start
– Start and stop points
and stop points, all
process steps, all – All process steps
decision points and – All decision points
directional flow. – Directional flow
– Value categories as defined below
Also be sure to • Value Added:
include Value – Physically transforms the “ thing” going through the process
C t
Categories
i such h as – Must be done right the first time
Value Added – Meaningful from the customer’s perspective (is the customer willing to
(Customer Focus) and pay for it?)
Value Enabling • Value Enabling:
(External Stakeholder – Satisfies requirements of non-paying external stakeholders (government
regulations)
focus).
• N on-Value Added
– Everything else

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


26

Six Sigma Fundamentals

Process Map Example

START B Z Call Center


LOGON TO PC &
REVIEW CASE LOGOFF PHONE, CHECK Process
TOOL HISTORY & MAIL,E-MAIL,VOICE MAIL
APPLICATIONS
TAKE NOTES
E
Map
C Y
SCHEDULED
N PHONE TIME?
A
SCHEDULED
PHONE TIME? Z TRANSFER Y
TRANSFER
APPROPRIATE?
CALL
D N
Y
A EXAMINE NEXT NOTE
N OR RESEARCH ITEM
LOGON
TO PHONE IMMEDIATE PROVIDE
Y RESPONSE Y RESPONSE
ACCESS CASE TOOL F
D PHONE
TIME AVAILABLE? PHONE&

N WALK-IN NOTE
CALL or DATA ENDS ENTER APPROPRIATE
WALK-IN? N SSAN (#,9s,0s)
Z CALL PUT ON HOLD,
REFER TO IF EMP DATA NOT
PHONE DATA REFERENCES POPULATED, ENTER
CAPTURE BEGINS

CREATE A CASE
Y INCL CASE TYPE
ANSWER? OLD N
DETERMINE WHO DATE/TIME, &
CASE
IS INQUIRING N NEEDED BY
Y
QUERY INTERNAL UPDATE ENTRIES
ACCESS CASE TOOL HRSC SME(S) INCL OPEN DATE/TIME AUTO Y
ROUTE
ROUTE

DETERMINE NATURE N
OF CALL & CONFIRM Y
ANSWER?
UNDERSTANDING
CASE Y CLOSE CASE
N CLOSED W/ E
DATE/TIME
CASE TOOL N OFF HOLD AND ADD TO N
RECORD? C ARRANGE CALL RESEARCH
BACK PHONE DATA LIST GO TO E
TAKE ACTION
Y ENDS F or E NEXT
or
DEPENDING ON
DO RESEARCH F
B CASE

Cross Functional Process Map


When multiple departments or functional groups are involved in a complex process it is often useful
to use cross functional Process Maps.
– Draw in either vertical or horizontal swim lanes and label the
functional groups and draw the Process Map

These are best


Sending Fund Tra nsfers
used in
transactional
Department

Attach ACH ACH – Automated


Request
Start form to Clearing House.
processes or transfer
Invoice

where the
process involves Fill out ACH Receive
Vendor

Produce an No
enrollment payment End
Invoice
form
several
departments
departments. Match against
Accounting

Maintain database
Financial

Vendor Yes Input info into bank batch to balance ACH


The lines drawn info in
FRS?
web interface and daily cash transfers
batch
horizontally
across the map Accepts transactions,
Bank

transfer money, and


represent provide batch total

different
Accounting

Review and
General

21.0
departments in Process
transfer in
3.0
Journey Entry
Bank
Reconciliation
the company
p y FRS

and are usually


referred to as Swim Lanes. By mapping in this manner one can see how the various
departments are interdependent in this process.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


27

Six Sigma Fundamentals

Process Map Exercise

Ex ercise objective: Using your favorite process


mapping tool create a process map of your project
or functional area.

1 Create
1. C t a high
hi h llevell process map, use enough
hddetail
t il
to make it useful.
• It is helpful to use rectangular post-it’s for process
steps and square ones turned to a diamond for
decision points.
2. Color code the value added (green) and non-value
added (red) steps.
3. Be prepared to discuss this with your mentor

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


28

Six Sigma Fundamentals

Do you know your Customer?

Know ing your customer is more tha n just a ha ndsha k e. It


is necessa ry to clea rly understa nd their needs. In Six Sigma
w e ca ll this “ understa nding the CTQ ’s” or critica l to
customer cha ra cteristics.

Voice Of the Customer Critical to Customer


Characteristics

An important element of Six Sigma is understanding your customer. This is called VOC or Voice of the
Customer. By doing this allows you to find all of the necessary information that is relevant between your
product/process and customer, better known as CTQ’s (Critical to Quality). The CTQ’s are the customer
requirements for satisfaction with your product or service.

Voice of the Customer


Do you feel confident
that you know what Voice of the Customer or VOC seems obvious; after all, we all
your customer wants? know what the customer wants. Or do we??

There of four steps The customer’s perspective has to be foremost in the mind of the Six
that can help you in Sigma Belt throughout the project cycle.
understanding your 1. Features
customer. These • Does the process provide what the customers expect and need?
• How do you know?
steps
t focus
f on the
th
2. Integrity
customer’s • Is the relationship with the customer centered on trust?
perspective of • How do you know?
features, your 3. Delivery
company’s integrity, • Does the process meet the customer’s time frame?
delivery mechanisms • How do you know?
4. Expense
and perceived value • Does the customer perceive value for cost?
versus cost. • How do you know?

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


29

Six Sigma Fundamentals

What is a Customer?

Every process has a


There are different types of customers which dictates how we interact
deliverable. The person
or entity who receives with them in the process, in order to identify customer and supplier
this deliverable is a requirements we must first define who the customers are:
customer.
Ex terna l
There are two different – Direct: those who receive the output of your services, they generally are
types of customers; the source of your revenue
External and Internal
Internal. – Indirect: those who do not receive or pay for the output of your services
People generally forget but have a vested interest in what you do (government agencies)
about the Internal
customer and they are
just as important as the Interna l
customers who are - those within your organization
buying your product. who receive the output of your
work

Value Chain

The relationship from one process to the next in an organization creates a “ value
chain” of suppliers and receivers of process outputs.
Each process has a contribution and accountability to the next to satisfy the
external customer.
External customers needs and requirements are best met when all process
owners work cooperatively in the value chain.

Careful –
each move
has many
impacts!

The disconnect from Design and Production in some organizations is a good example. If Production
is not fed the proper information from Design how can Production properly build a product?

Every activity (process) must be linked to move from raw materials to a finished product on a store
shelf.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


30

Six Sigma Fundamentals

What is a CTQ?

• Critical to Quality (CTQ ’s) are measures that we use to capture VOC
properly. (also referred to in some literature as CTC’s – critical to Example: Making an
customer) Online Purchase
• CTQ ’s can be vague and difficult to define.
Reliability – Correct
– The customer may identify a requirement that is difficult to measure
amount of money is
directly so it will be necessary to break down what is meant by the
taken from account
customer into identifiable and measurable terms

Product: Service: Responsiveness –


• Performance • Competence How long to you wait
• Features • Reliability for product after the
• Conformance • Accuracy Merchant receives
• Timeliness • Timeliness there money
• Reliability • Responsiveness
• Serviceability • Access Security – is your
• Durability • Courtesy
sensitive
iti bbanking
ki
• Aesthetics • Communication
information stored in
• Reputation • Credibility
• Completeness • Security secure place
• Understanding

Developing CTQ’s
The steps in developing
CTQ’s are identifying
the customer, capturing • Identify Customers
the Voice of the Step 1 • Listing
Customer and finally • Segmentation
validating the CTQ’s. • Prioritization

• Va lida te CTQ s
Step 2 • Translate VOC to CTQ s
• Prioritize the CTQ s
• Set Specified Requirements
• C fi CTQ s with
Confirm ith customer
t

• Ca pture V O C
Step 3 • Review existing performance
• Determine gaps in what you need to know
• Select tools that provide data on gaps
• Collect data on the gaps

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


31

Six Sigma Fundamentals

Cost of Poor Quality (COPQ)

Another important tool from • COPQ stands for Cost of Poor Quality
this phase is COPQ, Cost of
Poor Quality. COPQ • As a Six Sigma Belt, one of your tasks will be to estimate COPQ for
represents the financial your process
opportunity of your team’s
improvement efforts. Those • Through your process exploration and project definition work you will
opportunities are tied to develop a refined estimate of the COPQ in your project
either hard or soft savings
savings.
• This project COPQ represents the financial opportunity of your team’s
COPQ, is a symptom improvement effort (VOB)
measured in loss of profit
(financial quantification) that • Calculating COPQ is iterative and will change as you learn more
results from errors (defects) about the process
and other inefficiencies in our No, not that
processes. This is what we kind of cop
are seeking to eliminate! queue!
You will use the concept of COPQ to quantify the benefits of an improvement effort and also to
determine where you might want to investigate improvement opportunities.

The Essence of COPQ


There are four
• COPQ helps us understand the financial impact of problems created elements that make up
by defects. COPQ; External Costs,
Internal Costs,
Prevention Costs and
• COPQ is a sym ptom, not a defect
Appraisal Costs.
– Projects fix defects with the intent of improving symptoms. Internal Costs are
opportunities of error
• Th
The concepts off traditional
di i lQQuality
li C Cost are the
h ffoundation
d i ffor f
foundd in
i a process th
thatt
COPQ. is within your
– External, Internal, Prevention, Appraisal organization. Whereas,
External Costs are
costs associated to the
• A significant portion of COPQ from any defect comes from effects finish product
that are difficult to quantify and must be estimated. associated with the
internal and external
customer.

Prevention Costs are typically cost associated to product quality, this is viewed as an investment that
companies make to ensure product quality. The final element is Appraisal costs, these are tied to
product inspection and auditing.

This idea was of COPQ was defined by Joseph Juran and is a great point of reference to gain a
further understanding
understanding.

Over time and with Six Sigma, COPQ has migrated towards the reduction of waste. Waste is a better
term, because it includes poor quality and all other costs that are not integral to the product or service
your company provides. Waste does not add value in the eyes of customers, employees or investors.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


32

Six Sigma Fundamentals

COPQ - Categories

Interna l CO PQ Prevention
• Quality Control • Error Proofing Devices
Department • Supplier Certification
• Inspection • Design for Six Sigma
• Quarantined Inventory • Etc…
• Etc…

Detection
• W arranty • Supplier Audits
• Customer Complaint Related • Sorting Incoming Parts
Travel • p
Repaired Material
• Customer Charge Back Costs • Etc…
• Etc…

COPQ - Iceberg

Generally speaking W a rra nty


Inspection
Recode
COPQ can be Rew ork

classified as tangible Rejects

(easy to see) and


Visible Costs
intangible (hard to
see). Visually you can
think of COPQ as an Engineering cha nge orders Lost sa les
iceberg Most of the
iceberg.
iceberg is below the Tim e va lue of money (less obvious) La te delivery
Ex pediting costs
water where you
cannot see it. M ore Set-ups
Ex cess inventory

Similarly the tangible W ork ing Ca pita l


a lloca tions
Long cy cle tim es
quality costs are costs Ex cessive M a teria l
the organization is O rders/ Pla nning
rather conscious of,f Hidden Costs Lost Custom er Loya lty
may be measuring
already or could easily be measured. The COPQ metric is reported as a percent of sales revenue. For
example tangible costs like inspection, rework, warranty, etc can cost an organization in the range of 4
percent to 10 percent of every sales dollar it receives. If a company makes a billion dollars in revenue,
this means there are tangible wastes between 40 and 100 million dollars.

g
Even worse are the intangible Costs of Poor Quality.
y These are typically
yp y 20 to 35% of sales. If yyou
average the intangible and tangible costs together, it is not uncommon for a company to be spending
25% of their revenue on COPQ or waste.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


33

Six Sigma Fundamentals

COPQ and Lean

W a ste does not a dd, subtra ct or otherw ise modify the


throughput in a w a y tha t is perceived by the customer to
a dd va lue.
• In some cases, waste may be
necessary,
y, but should be
Lea n Enterprise
recognized and explored:
Seven Elements of W a ste *
– Inspection, Correction, W aiting
u Correction
in suspense
u Processing
– Decision diamonds, by
definition, are non-value added u Conveyance
• Often,, waste can provide
p u Motion
opportunities for additional defects u W aiting
to occur. u Overproduction
• W e will discuss Lean in more u Inventory
detail later this week.

Implementing Lean fundamentals can also help identify areas of COPQ. Lean will be discussed later.

COPQ and Lean

W hil
hile ha
h rdd sa vings
i a re a lw
l a y s more desira
d i ble bl
beca use they a re ea sier to qua ntify, it is a lso
necessa ry to think a bout soft sa vings.

CO PQ – Ha rd Sa vings CO PQ – Soft Sa vings

• Labor Savings • Gaining Lost Sales


• Cycle Time Improvements • Missed Opportunities
• Scrap Reductions • Customer Loyalty
• Hidden Factory Costs • Strategic Savings
• Inventory
y Carrying
y g Cost • Preventing Regulatory Fines

Here are examples are COPQ’s Hard and Soft Savings.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


34

Six Sigma Fundamentals

COPQ Exercise

Ex ercise objective: Identify current COPQ


opportunities in your direct area.

1. Brainstorm a list of COPQ opportunities.

2. Categorize the top 3 sources of COPQ for the


four classifications:
• Internal
• Et
External l
• Prevention
• Detection

Notes

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


35

Six Sigma Fundamentals

The Basic Six Sigma Metrics

In a ny process improvement endea vor, the ultima te


objective is to ma k e the process:

• Better: DPU, DPMO, RTY (there are others, but they derive from these
basic three)
• F ster:
Fa t C l Ti
Cycle Time
• Chea per: COPQ

IfIfyou
youmake
makethetheprocess
processbetter
betterby
byeliminating
eliminatingdefects
defectsyou
youwill
willmake
makeititfaster
faster
IfIfyou
you choose to make the process faster, you will have to eliminatedefects
choose to make the process faster, you will have to eliminate defectstoto
bebeasasfast
fastas
asyou
youcan
canbe
be
IfIfyou
you make the processbetter
make the process betteror
orfaster,
faster,you
youwill
willnecessarily
necessarilymake
makeititcheaper
cheaper

The
The metrics
metricsfor
for aallllSix
Six Sigma
Sigma projects
projectsfa
fallllinto
into one
one of
of these
these three
three
ca tegories
ca tegories

Th previous
The i slides
lid have
h been
b discussing
di i process managementt and d th
the concepts
t bbehind
hi d a process
perspective. Now we begin to discuss process improvement and the metrics used.

Some of these metrics are:


DPU: defects per unit produced.
DPMO: defects per million opportunities, assuming there is more than one
opportunity to fail in a given unit of output.
RTY: rolled throughput
g p yyield, the p probability
y that any
y unit will g
go through
g ap
process
defect-free.

Cycle Time Defined

Think of Cycle Time in terms of your product or tra nsa ction


in the eyes of the customer of the process:

– It is the time required for the product or transaction to go through the


entire process, from beginning to end

– It is not simply the “ touch time” of the value-added portion of the process

W ha t is the cycle
y time of the pprocess you
y ma pp
pped?
Is there a ny va ria tion in the cycle time? W hy?

Cycle time includes any wait or queue time for either people or products.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


36

Six Sigma Fundamentals

Defects Per Unit (DPU)

DPU or D Defects
f t per U Unitit
quantifies individual defects Six Sigma methods quantify individual defects and not just defectives
on a unit and not just – Defects account for all errors on a unit
defective units. A returned • A unit may have multiple defects
unit or transaction can be • An incorrect invoice may have the wrong amount due and the wrong
due date
defective and have more
– Defectives simply classifies the unit bad
than one defect.
• Doesn’t matter how many defects there are
Defect: A physical count of • The
Th invoice
i i iis wrong, causes are unknown
k
all errors on a unit, – A unit:
regardless of the disposition • Is the measure of volume of output from your area.
of the unit. • Is observable and countable. It has a discrete start and stop point.
• It is an individual measurement and not an average of
EXAMPLES: An error in a measurements.
Online transaction has
(typed wrong card number, Tw o Defects O ne Defective
internet failed). In this case
one online transaction had 2
defects (DPU=2).
A Mobile Computer that has 1 broken video screen, 2 broken keyboard keys and 1 dead battery,
has a total of 4 defects. (DPU=4)

Is a p
process that pproduces 1 DPU better or worse than a p
process that g
generates 4 DPU? If yyou
assume equal weight on the defects, obviously a process that generates 1 DPU is better; however,
cost and severity should be considered. However, the only way you can model or predict a process
is to count all the defects.

First Time Yield

Traditional metrics
when chosen
poorly can lead the
team in a direction
that is not
consistent with the
focus of the
business. Some
of the metrics we
must be
concerned about
would be FTY -
FIRST TIME
YIELD. It is very
possible to have
100% FTY and
spend tremendous
amounts in excess
repairs and
rework.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


37

Six Sigma Fundamentals

Rolled Throughput Yield

Instead of relying on FTY - First Time Yield, a more efficient metric to use is RTY-Rolled Throughput
Yield. RTY has a direct correlation (relationship) to Cost of Poor Quality.
In the few organizations where data is readily available, the RTY can be calculated using actual defect
data. The data provided by this calculation would be a binomial distribution since the lowest yield
possible would be zero.
As depicted here, RTY is the multiplied yield of each subsequent operation throughout a process (X1 *
X2 * X3…)

RTY Estimate
Sadly, in most companies there is • In many organizations the long term data required to
not enough data to calculate RTY calculate RTY is not available, we can however estimate
in the long term. Installing data RTY using a known DPU as long as certain conditions are
collection practices required to met.
provide such data would not be • The Poisson distribution generally holds true for the
cost effective. In those instances, random distribution of defects in a unit of product and is
it is necessary to utilize a the basis for the estimation.
prediction off RTY in the form
f off e- – The best estimate of the proportion of units containing
dpu (e to the negative dpu). no defects, or RTY is:
When using the e-dpu equation to RTY = e-dpu -dpu
calculate the probability of a
product or service moving through The mathematical constant e is the base of the natural logarithm.
e ≈ 2.71828 18284 59045 23536 02874 7135
the entire process without
a defect,, there are several things
g that must be held for consideration. While this would seem to be a
constraint, it is appropriate to note that if a process has in excess of 10% defects, there is little need to
concern yourself with the RTY.
In such extreme cases, it would be much more prudent to correct the problem at hand before worrying
about how to calculate yield.
Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com
38

Six Sigma Fundamentals

Deriving RTY from DPU

The Binomial distribution is the true model for defect data


data, but the Poisson is the
convenient model for defect data. The Poisson does a good job of predicting
when the defect rates are low.

120%
Poisson
Poisson VS
VS Binomial
Binomial (r=0,n=1)
(r=0,n=1) Probability
Probability Yield
Yield Yield
Yield %
%Over
Over
120% of
ofaadefect
defect (Binomial)
(Binomial) (Poisson)
(Poisson) Estimated
Estimated
0.0
0.0 100%
100% 100%
100% 0%
0%
100%
100% Yield
Yield (Binomial)
(Binomial) 0.1
0.1 90%
90% 90%
90% 0%
0%
Yield
Yield (Poisson)
(Poisson) 0.2
0.2 80%
80% 82%
82% 2%
2%
(RTY)

80%
d (RTY)

80%
0.3
0.3 70%
70% 74%
74% 4%
4%
60% 0.4
0.4 60%
60% 67%
67% 7%
7%
60%
Yield

0.5
05
0.5 50%
50% 61%
61% 11%
11%
Yiel

40% 0.6
0.6 40%
40% 55%
55% 15%
15%
40%
0.7
0.7 30%
30% 50%
50% 20%
20%
20%
20%
0.8
0.8 20%
20% 45%
45% 25%
25%
0.9
0.9 10%
10% 41%
41% 31%
31%
0%
0% 1.0
1.0 0%
0% 37%
37% 37%
37%
0.0
0.0 0.1
0.1 0.2
0.2 0.3
0.3 0.4
0.4 0.5
0.5 0.6
0.6 0.7
0.7 0.8
0.8 0.9
0.9 1.0
1.0
Probability
Probabilityof
ofaadefect
defect

Binom ia l
n = number of units
r = number of ppredicted defects
p = probability of a defect occurrence P i
Poisson
q = 1 -p
For low defect rates (p < 0.1), the Poisson approximates the Binomial fairly well.

Our goal is to predict yield. For process improvement, the “yield” of interest is the ability of a process
to produce zero defects (r=0). Question: What happens to the Poisson equation when r=0?

D i i RTY from
Deriving f DPU - Modeling
M d li

Given a Unit
probability that Ba sic Q uestion: W hat is the likelihood of
O pportunity producing a unit with zero defects?
any opportunity is
a defect = # • For the unit shown above the following
data was gathered:
defects / (# units
– 60 defects observed
x # opps
pp p per unit):
) – 60 units processed
RTY
RTY for
o DPU
for U == 11
DPU
0.368
0.368
• W hat is the DPU? 0.364
To what value is 0.364
0.36
0.36
Yield

the P(0)
Yield

0.356
0.356
converging? 0.352
0.352
• W hat is probability that any given 0.348
0.348
Note: Ultimately, opportunity will be a defect? 10
10 100
100 1000
1000 10000
10000 100000
100000 1000000
1000000
Chances
Chances Per
Per Unit
Unit
this means that
you need the
y • W hat is the probability that any given Opportunities P(defect) P(no defect) RTY (Prob defect free unit)
ability to track all opportunity will N OT be a defect is: 10 0.1 0.9 0.34867844
100 0.01 0.99 0.366032341
the individual 1000 0.001 0.999 0.367695425
10000 0.0001 0.9999 0.367861046
defects which • The probability that all 10 opportunities 100000 0.00001 0.99999 0.367877602
on single unit will be defect-free is: 1000000 0.000001 0.999999 0.367879257
occur per unit via
If we extend the concept to an infinite number
your data of opportunities, all at a DPU of 1.0, we will
collection system. approach the value of 0.368.

Probability that an opportunity is a defect = 0.1


Probability that an opportunity is not a defect = 1 - 0.1 = 0.9
Probability that all 10 opportunities are defect-free = 0.910 = 0.34867844

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


39

Six Sigma Fundamentals

RTY Prediction — Poisson Model

• Use the binomial to estimate the probability of a discrete event


(good/ bad) when sampling from a relatively large population,
n > 16, & p < 0.1.
• W hen r=0, we compute the probability of finding zero defects per
When r =
unit (called “ rolled throughput yield” ).
1, this
• The table to the right shows the proportion of product which will
equation have (dpu) r e – dpu
simplifies Y=
to:
– 0 defects (r=0)
(r 0) r r! p[r]
– 1 defect (r=1) W hen DPU=1
(dpu)*e-
dpu – 2 defects (r=2), etc… 0 0.3679
• W hen, on average, we have a process, with 1 defect per unit, 1 0.3679
then we say there is a 36.79% chance of finding a unit with zero 2 0.1839
defects. There is only a 1.53% chance of finding a unit with 4
defects. 3 0.0613
• W hen r=1,
r 1 this equation simplifies to: 4 0.0153
• To predict the % of units with zero defect (i.e., RTY): 5 0.0031
– count the number of defects found 6 0.0005
– count the number of units produced 7 0.0001
– compute the dpu and enter it in the dpu equation: 8 0.0000

The p
point of this slide is to demonstrate the mathematical model used to p predict the p
probability
y of an
outcome of interest. It has little practical purpose other than to acquaint the Six Sigma Belt with the math
behind the tool they are learning and let them understand that there is a logical basis for the equation.

Six Sigma Metrics – Calculating DPU

The DPU for a given operation can be calculated by dividing the number of
defects found in the operation by the number of units entering the operational
step
step.
1 0 0 pa rts built
2 defects identified a nd corrected
dpu = 0 .0 2
So RTY for this step w ould be e-.0 2 (.9 8 0 1 9 9 ) or 9 8 .0 2 %.

RTY
RTYTO =0 .9 0
TOTT= 0 .9 0
RTY 1 =0 .9 8 RTY 2 = 0 .9 8 RTY 3 =0 .9 8 RTY 4 = 0 .9 8 RTY 5 = 0 .9 8
dpu = .0 2 dpu = .0 2 dpu = .0 2 dpu = .0 2 dpu = .0 2
44
dpu
dpuTO = .1
TOTT = .1
If the process had only 5 process steps with the same yield the process
RTY would be: 0.98 * 0.98 * 0.98 * 0.98 * 0.98 = 0.903921 or 90.39%. Since our
metric of primary concern is the COPQ of this process, we can say that in less than 9% of
the time we will be spending dollars in excess of the pre-determined standard or value
added amount to which this process is entitled.

N ote: RTY’s must be multiplied a cross a process,


DPU’s a re a dded a cross a process.

When the number of steps in a process continually increase, we then continue to multiply the yield
from each step to find the overall process yield. For the sake of simplicity let’s say we are calculating
the RTY for a process with 8 steps. Each step in our process has a yield of .98. Again, there will be a
direct correlation between the RTY and the dollars spent to correct errors in our process.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


40

Six Sigma Fundamentals

Focusing our Effort – FTY vs. RTY

Assume we are creating two products in our organization


that use similar processes.

Product A
FTY = 80%
Product B
FTY = 80%

How do you k now w ha t to w ork on?


*None of the data used herein is associated with the products shown herein. Pictures are no more than illustration to make a point to teach the concept.

If we chose onlyy to examine the FTY in our decision making


gpprocess,, it would be difficult to determine
the process and product on which our resources should be focused.

As you have seen, there are many factors behind the final number for FTY. That’s where we need to
look for process improvements.

Focusing our Effort – FTY vs. RTY

Let’s look at the DPU of each product assuming equal opportunities and
Answer Slide margin…
questions.
Product A
Now we have a better Product B
idea of:
“What
What does a defect dpu 200 / 100 = 2 dpu
dpu 100 / 100 = 1 dpu
cost?”
“What product should N ow, can you tell which to work on?
get the focus?”
“ the product with the highest DPU?” …think again!

How much more time and/ or raw material are required?


How much extra floor space do we need?
How much extra staff or hours required to perform the rework?
How many extra shipments are we paying for from our suppliers?
How much testing have we built in to capture our defects?
*None of the data used herein is associated with the products shown herein. Pictures are no more than illustration to make a point to teach the concept.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


41

Six Sigma Fundamentals

At this point, you should be able to:

ƒ Describe what is meant by “Process Focus”

ƒ Generate a Process Map

ƒ Describe the importance of VOC, VOB and VOE, and CTQ’s

ƒ Explain COPQ

ƒ Describe the Basic Six Sigma metrics

ƒ Explain the difference between FTY and RTY

ƒ Explain how to calculate “Defects per Unit” (DPU)

You have now completed Define Phase – Six Sigma Fundamentals.

Notes

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


42

Lean Six Sigma


Black Belt Training

Define Phase
Selecting Projects

Now we will continue in the Define Phase with the “Selecting


Selecting Projects
Projects”.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


43

Selecting Projects
Overview
The core fundamentals of Understa nding
g Six Sigma
g
this phase are Selecting
Projects, Refining and
Defining and Financial Six Sigma Funda m enta ls
Evaluation.
Selecting Projects
The output of the Define
Phase is a well developed
and
a da articulated
t cu ated p
project.
oject Itt has
as Selecting
g Projects
Selecting j
Projects
been correctly stated that
50% of the success of a Refining
Refining &
& Defining
Defining
project is dependent on how
well the effort has been
Financial
Financial Evaluation
Evaluation
defined.

Elem ents of W a ste

W ra p Up & Action Items

Approaches to Project Selection


Here are three approaches
There a re three ba sic a pproa ches to Project Selection…
for identifying projects. Do
you know what the best
approach is?

The most popular process


“ Bla ta ntly
O bvious”
for generating and selecting
Identifies projects based on individual’s projects is by holding
“ experience” and “ tribal knowledge” “brainstorming” sessions. In
of areas that m a y be creating
problems in delivering our service(s) / brainstorming sessions a
product(s)
d t( ) and d hopefully
h f ll tie
bottom-line business impact.
ti tto group off peoplel gett together,
t th
sometimes after polling
process owners for what
“ Structured Approa ch” “blatantly obvious” problems
Identifies projects based on organizational data, provides a direct plan to effect core business are occurring, and as a team
metrics that have bottom-line impact.
try to identify and refine a list
All three w a y s w ork …the Structured Approa ch is the most desira ble. of problems that MAY be
causing issues in the
organization. Furthermore in an organization that does not have an intelligent problem-solving
methodology in-place, such as Six Sigma, Lean or even TQM, what follows the project selection process
brainstorm is ANOTHER brainstorming session focused on coming up with ideas on how to SOLVE these
problems.
Although brainstorming itself can be very structured it falls far short of being a systematic means of
identifying projects that will reduce cost of poor quality throughout the organization. Why…for several
reasons One
reasons. One, it does not ensure that we are dealing with the most important high-impact
high impact problems,
problems but
rather what happens to be the recent fire fight initiatives. Two, usually brainstorming does not utilize a data
based approach, it relies on tribal knowledge, experience and what people THINK is happening. As we
know what people THINK is happening and what is ACTUALLY happening can be two very different things.
In this module we are going to learn about establishing a structured approach for Project Selection.
Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com
44

Selecting Projects

Project Selection – Core Components

Business Ca se – The business case is a high level articulation of the


area of concern. This case answers two primary questions; one,
what is the business motivation for considering the project and two,
what is our general area of focus for the improvement effort.

Project
j Cha rter – The p
project
j charter is a more detailed version of
the business case. This document further focuses the improvement
effort. It can be characterized by two primary sections, one, basic
project information and simple project performance metrics.

Benefits Ana lysis – The benefits analysis is a comprehensive


financial evaluation of the pproject.
j This analysis
y is concerned with
the detail of the benefits in regard to cost & revenue impact that we
are expecting to realize as a result of the project.

With every project there must be a minimum of 3 deliverables:


Business Case
Project Charter
Benefits Analysis

Project Selection - Governance

Responsible Frequency
Pa rty Resources of Upda te

Business Champion Business Unit


N/ A
Ca se (Process Owner) Members

Champion (Process
Project
Six Sigma Belt Owner) & Ongoing
Cha rter
Master Black Belt

Benefits Capture Champion (Process


Benefits Ongoing /
Managerg or Owner)) &
Ana ly sis DM AIC
D,M,A,I,C
Unit Financial Rep Six Sigma Belt

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


45

Selecting Projects

A Structured Approach – A Starting Point

These are some The Starting Point is defined by the Champion or Process Owner and the
examples of Business Case is the output.
Business Metrics or – These are some examples of business metrics or Key Performance Indicators
Key Performance commonly referred to as KPI’s.
Indicators. – The tree diagram is used to facilitate the process of breaking down the metric of
interest.
What metric should
you focus on…it ™ EBIT
depends? What is Level 2
™ Cy cle time
the project focus?
What are your ™ Defects Level 2
organizations Level 1
strategic goals? ™ Cost
Level 2
Are Cost of Sales ™ Revenue
preventing growth? ™ Compla ints Level 2
Are ccustomer
stomer
complaints ™ Complia nce
resulting in lost
™ Sa fety
earnings? Are
excess cycle times
and yield issues eroding market share? Is the fastest growing division of the business the
refurbishing department?
It depends because the motivation for organizations vary so much and all projects should be directly
aligned with the organizations objectives. Answer the question: What metrics are my department not
meeting? What is causing us pain?

A Structured Approach - Snapshot

Once a metric point


has been determined The KPI’s need to brok en dow n into a ctiona ble levels.
another important
question needs to be Business M ea sures
asked – then the next Actiona ble Level
Key Performa nce Indica tors (KPIs)
question should be
what is my metric a
function of? In other
words what are all of
the things that affect
this metric. Level 2 Level 3 Activities Processes
Level 1
We utilize the Tree Level 2 Level 4 Activities Processes
Diagram to facilitate
the process of
breaking down the metric of interest. When creating the tree diagram you will eventually run into
activities
ti iti which
hi h are made
d up off processes. This
Thi iis where
h projects
j t willill b
be ffocused db because thi
this iis
where defects, errors and waste occur.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


46

Selecting Projects

Business Case Components – Level 1

Prima ry Business M ea sure or Key Perform a nce


Indica tor (KPI)

Level 2 Level 3 Activities Processes


Level 1
Level 2 Level 4 Activities Processes

– Focus on one primary business measure or KPI.


– Primary business measure should bear a direct line of site with the
organizations strategic objective.
– As the Champion narrows in on the greatest opportunity for
improvement, this provides a clear focus for how the success will be
measured.

Be sure to start with higher level metrics, whether they are measured at the Corporate Level,
Division Level or Department Level, projects should track to the Metrics of interest within a given
area. Primary Business Measures or Key Performance Indicators (KPI’s) serve as indicators of the
success of a critical objective.

Business Case Components – Business Measures

Post business measures (product/service) of the primary


business measure are lower level metrics and must focus on
the end product to avoid internal optimization at expense of
total optimization.

Business Business
Activities Processes
Prima ry Business M ea sure M ea sure

M ea sure Business Business


Activities Processes
M ea sure M ea sure

Post business measures (product/service) are lower level metrics and must focus on the end
product.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


47

Selecting Projects

Business Case Components - Activities

Business Business
Activities Processes
Prim a ry Business M ea sure M ea sure

M ea sure Business
Business
Activities Processes
M ea sure M ea sure

Y = f (x 1 , x 2 , x 3 …x n )
1 st Call Resolution = f (Calls, Operators, Resolutions…xn )

Black Box Testing = f (Specifications, Simulation, Engineering…x n)

Business measures are a function of activities. These activities are usually created or enforced by
direct supervision of functional managers. Activities are usually made up of a series of processes or
specific processes.

B i
Business C
Case C
Components
t - Processes
P

Business Business
Activities Processes
Prim a ry Business M ea sure M ea sure

M ea sure Business
Business
Activities
ct t es Processes
ocesses
M ea sure M ea sure

Y = f (x 1 , x 2 , x 3 …x n )
Resolutions = f (N ew Customers, Existing Customers, Defective Products…xn )

Simulation = f (Design, Data, modeling…xn )

The processes represent the final stage of the matrix where multiple steps result in the delivery
of some output for the customer. These deliverables are set by the business and customer and
are captured within the Voice of the Customer, Voice of the Business or Voice of the Employee.
What makes up these process are the X’s that determine the performance of the Y which is
where the actual breakthrough projects should be focused.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


48

Selecting Projects

What is a Business Case?

The Business Ca se communica tes the need for the project


in terms of meeting business objectives.
The Business Case
is created to ensure
the strategic need The components are:
for your project. It – Output unit (product/ service) for external customer
is the first step in – Primary business measure of output unit for project
project
j t description
d i ti – Baseline performance of primary business measure
development.
– Gap in baseline performance of primary business measure from
business objective

Let’s get
down to
business!

Business Case Example


p

During FY 2005, the 1st Time Call Resolution


Efficiency for New Customer Hardware Setup Here is an example of an
was 89% . Business Case. This defines
the problem and provides
evidence of the problem.
This represents a gap of 8% from the industry
standard of 93% that amounts to US
$2,000,000 of annualized cost impact.

As you review this statement remember the following format of what needs to be in a Business Case:
WHAT is wrong, WHERE and WHEN is it occurring, what is the BASELINE magnitude at which it is
occurring
i and d what
h t iis it COSTING me?
?

You must take caution to avoid under-writing a Business Case. Your natural tendency is to write too
simplistically because you are already familiar with the problem. You must remember that if you are to
enlist support and resources to solve your problem, others will have to understand the context and the
significance in order to support you.

The Business Case cannot include any speculation about the cause of the problem or what actions will
be taken to solve the problem. It’s important that you don’t attempt to solve the problem or bias the
solution at this stage. The data and the Six Sigma methodology will find the true causes and solutions
to the problem.

The next step is getting project approval.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


49

Selecting Projects

The Business Case Template

Fill in the Bla nk s for Your Project:

During ___________________________________ , the ____________________ for


(Period of tim e for ba seline perform a nce) (Prim a ry business m ea sure)

________________________ was _________________ .


(A k ey business process) (Ba seline perform a nce)

This gap of ____________________________


(Business objective ta rget vs. ba seline)

from ___________________ represents ____________________ of cost impact.


(Business objective) (Cost im pa ct of ga p)

You need to make sure that your own Business Case captures the units of pain, the business measures,
the performance and the gaps. If this template does not seem to be clicking use your own or just free
form your Business Case ensuring that its well articulated and quantified.

Business Case Exercise

Ex ercise objective: To understand how to create a “ strong


strong”
business case.

1. Complete the business case template below to the best of your


ability.

During ________________________ , the ____________________ for


(Period of time for ba seline perform a nce) (Prima ry business mea sure)

_______________________ was ___________________ .


(A k ey business process) (Ba seline performa nce)

This gap of __________________________


(Business objective ta rget vs. ba seline)

from __________________ represents ____________ of cost impact


impact.
(Business objective) (Cost impa ct of ga p)

Using the Excel file ‘Define Templates.xls’, Business Case, perform this exercise.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


50

Selecting Projects

What is a Project Charter?


The Charter expands
p on the Business Case,, it clarifies the projects
p j focus and measures of
project performance and is completed by the Six Sigma Belt.

Components:
• The Problem
• Project Scope
• Project Metrics
y & Secondary
• Primary y
• Graphical Display of Project Metrics
• Primary & Secondary
• Standard project information
• Project, Belt & Process Owner
names
• Start date & desired End date
• Division or Business Unit
• Supporting Master Black Belt
(Mentor)
• Team Members

The Project Charter is an important document – it is the initial communication of the project. The first
phases of the Six Sigma methodology are Define and Measure. These are known as
“Characterization” phases that focus primarily on understanding and measuring the problem at hand.
Th f
Therefore some off th
the information
i f ti ini the
th Project
P j t Charter,
Ch t such h as primary
i and
d secondary
d metrics,
ti can
change several times. By the time the Measure Phase is wrapping up the Project Charter should be in
its final form meaning defects and the metrics for measuring them are clear and agreed upon.

As you can see some of the information in the Project Charter is self explanatory, especially the first
section. We are going to focus on establishing the Problem Statement and determining Objective
Statement, scope and the primary and secondary metrics.

P j t Charter
Project Ch t - Definitions
D fi iti

• Problem Sta tement - Articulates the pain of the defect or error in the
process.

• O bjective Sta tement – States how much of an improvement is desired


from the project.

• Scope – Articulates the boundaries of the project.

• Prima ry M etric – The actual measure of the defect or error in the process.

• Seconda ry M etric(s) – Measures of potential consequences (+ / -) as a


result of changes in the process.

• Cha rts – Graphical displays of the Primary and Secondary Metrics over a
period of time.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


51

Selecting Projects

Project Charter - Problem Statement

Migrate the Business Case into a Problem Statement


Statement…

First the Business


Case will serve as the
Problem Statement, as
the Belt learns more
about the process and
the defects that are
occurring.

Project Charter – Objective & Scope

Consider the following


for constructing your
Objective & Scope:

ƒ What represents a significant


improvement?
ƒ X amount of an increase in
yield
ƒ X amount of defect reduction
ƒ Use Framing Tools to establish
the initial scope
p

A project’s main objective is to solve a


problem! The area highlighted is for
articulating how much of a reduction or
improvement will yield a significant
impact to the process and business.

This is the starting point creating your


project’s Objective Statement.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


52

Selecting Projects

Pareto Analysis

Assisting you in
determining what Pa reto Ana lysis:
inputs are having
the greatest • A bar graph used to arrange information in such a way that priorities for
process improvement can be established.
impact on your
process is the
Pareto Analysis
approach
approach.

• The 80-20 theory was first developed in 1906, by Italian economist,


Vilfredo Pareto, who observed an unequal distribution of wealth and power
in a relatively small proportion of the total population. Joseph M. Juran is
credited with adapting Pareto' s economic observations to business
applications.

The 80:20 Rule Examples

• 20% of the time expended produced 80% of the results

• 80% of your phone calls go to 20% of the names on your list

• 20% of the streets handle 80% of the traffic

• 80% of the meals in a restaurant come from 20% of the menu

• 20% of the paper has 80% of the news

• 80% of the news is in the first 20% of the article


Here are some
• 20% of the p
people
p cause 80% of the p
problems examples of the 80:20
Rule. Can you think of
• 20% of the features of an application are used 80% of the time any other examples?

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


53

Selecting Projects

Pareto Chart - Tool


Multi level Pareto Charts are used in a drill down fashion to get to root cause of the tallest bar
bar.

Level 1 Scrap

200000 100

80
150000
Level 2 60 Department

Percent
Cost

100000 180000
40
160000 100
50000 140000
20
80
120000

Percent
0 100000 0
60
Cost

Scrap A B C
Count
Percent
150000
73.2
30000
14.6
25000
80000
12.2 Level 3
Cum % 73.2 87.8 100.0 40 Part
60000
100000
100
40000
20
20000 80000
80
0 0
Department J M F W Other
60000

Percent
60
Count 95000 23000 19000 17500 5000

Cost
Percent 59.6 14.4 11.9 11.0 3.1
Cum % 59.6 74.0 85.9 96.9 40000
100.0 40

20000 20

0 0
Part Z101 Z876 X492
Count 75000 15000 5000
Percent 78.9 15.8 5.3
Cum % 78.9 94.7 100.0

The Pareto Charts are often referred to as levels. For instance the first graph is called the first level,
the next the second level and so on.

Start high and drill down. Let’s look at how we interpret this and what it means.

Let’s look at the following example.


Level 2
Department
By drilling down from the first level we see 180000

that Department J makes up approximately 160000 100

140000
60% of the scrapp and p
part Z101 makes up p 120000
80

80% of Dept J’s scrap.

Percent
100000 60
Cost

80000

See how we are creating focus and 60000 40

establishing a line of sight? 40000


20
20000

0 0
You many be eager to jump into trying to fix Department
Count
J
95000
M
23000
F
19000
W
17500
Other
5000

the problem once you have identified it, BE Percent


Cum %
59.6
59.6
14.4
74.0
11.9
85.9
11.0
96.9
3.1
100.0

CAREFUL. This is what causes rework and


defects in the first place. Level 3
Part
100000
100
Follow the methodology, be patient and you 80000
will eventually be led to a solution. 80

60000
Percent

60
Cost

40000 40

20000 20

0 0
Part Z101 Z876 X492
Count 75000 15000 5000
Percent 78.9 15.8 5.3
Cum % 78.9 94.7 100.0

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


54

Selecting Projects

Pareto Chart - Example

ƒ Open MINITABTM and select • Use the “Call


Call Center
Center.mtw
mtw”
Pareto Analysis as shown above worksheet to create a Pareto

What would you do with this Pareto?

When your Pareto shows up


like this your focus is probably Pareto Chart of FAILURE MODE

too broad. 3000 100


2500
80
A good indication of having too 2000
Percent
Count

60
broad of a focus is when your 1500
40
1000
Pareto looks flat. It’s telling
500 20
you that there is no one or two
0 0
inputs that are impacting your FAILURE MODE
ED S L S
LL VE CT NS FO
process. Multiple inputs are O UT CA LE LI O W
T
IN
L F
R D IL N KD S
having similar effects. LY PE SK CO EA CU
CT R OP R CY BR ER
E D O LI S P
RR T
PO M O
CO RA M PR
You need to reduce the scope IN PE C O IM
O T
IN
of the project to get to a more
Count 495 489 478 472 468 455
granular level. Percent 17.3 17.1 16.7 16.5 16.4 15.9
Cum % 17.3 34.4 51.2 67.7 84.1 100.0

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


55

Selecting Projects

Pareto Chart – Example (Cont.)


Let’s look at the problem a little differently…
- Using a higher level scope for the first Pareto may help in providing focus.
- Create another Pareto as shown below.

This g
gives a better p
picture of which p
product category
g yp produces the highest
g defect count.

Pareto Chart of PRODUCT CATAGORIES


2500
100

2000
80

1500
Percent

60
Count

1000 40

500 20

0 0
PRODUCT CATAGORIES r
US ND US ND he
-B -I -B -I Ot
N
UM UM EE
N
EE
IN IN GR
A T A T GR
PL PL
Count 1238 450 362 201 106
Percent 52.5 19.1 15.4 8.5 4.5
Cum % 52.5 71.6 87.0 95.5 100.0

Now we’ve got something to work with. Notice the 80% area…. draw a line from the 80%
mark
k across to
t the
th cumulative
l ti percentt line
li (R
(Red
d Li
Line)) iin th
the graph
h as shown
h h
here.

Which cards create the highest Defect Rates?

Now you are beginning to see what needs work to improve the performance of your project.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


56

Selecting Projects

Pareto Chart – Example (cont.)

N ow tha t w e ha ve more of a focus a rea , drill dow n


one more level.
– This cha rt w ill only use the cla ssifica tions w ithin the first
ba r on the previous cha rt.

– Crea te a nother Pa reto w hich w ill drill dow n to the


ca tegories w ithin the Ca rd type from the previous
Pa reto.

Remember to keep focused on finding the biggest bang for the buck
buck.

N ow w ha t, w e’ve got ourselves a nother


“ Fla teto” …
Pareto
ParetoChart
Chartof
ofTRAVEL
TRAVEL
1400
1400
100
100
1200
1200

1000
1000 80
80
Percent

800
Percent

800
Count
Count

60
60
600
600
40
40
400
400
20
20
200
200

00 00
TRAVEL
TRAVEL CAR
CAR HOTEL
HOTEL AIR
AIR
Count
Count 428
428 420
420 390
390
Percent
Percent 34.6
34.6 33.9
33.9 31.5
31.5
Cum
Cum% % 34.6
34.6 68.5
68.5 100.0
100.0

Essentia lly this tells us tha t there in no clea r


direction w ithin the Pla tinum Business Accounts.

This does not mean there is NO opportunity for improvements to be had, simply means nothing
obvious is sticking out at this level.

So keep looking.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


57

Selecting Projects

Project Charter – Primary Metric

Moving
M i on tto ththe nextt E bli
Esta blishing
hi the
h Prim
P i a ry M etric:
i
element of the Project The primary metric is a
Charter…, Using the very important measure in
Excel file ‘Define
the Six Sigma project, this
Templates.xls’,
Project Charter,
m etric is a qua ntified
perform the following m ea sure of the defect
exercise: or prima ry issue of
the project.
Since we will be
narrowing in on the W e can only have One
defect thru the Primary metric, recall the
Measure Phase it is equation y equals f of x,
common for the well, once your defect is
primary metric to
– Quantified measure of the defect located then Y will be your
change several times
– Serves as the indicator of project success defect…your primary
while we struggle to
understand what is – Links to the KPI or Primary Business measure metric will measure it.
happening in our – Only one primary metric per project
process of interest.
The primary metric also serves as the gauge for when we can claim victory with the project.

Project Charter – Secondary Metrics


Consider a project
focused on improving Esta blishing Seconda ry M etric(s):
duration of call times
(cycle time) in a call
Secondary metrics are put in
center. If we realize a
reduction in call time place to measure potential
you would want to changes that may occur as a
know if anything else result of making changes to
was effected. our Primary Metric.

Think about it…did They will Measure ancillary


overtime increase / g in the process, both
changes
reduce, did labor positive and negative.
increase / reduce, what
happened to customer
satisfaction ratings?
These are all things
that should be – Measures positive & negative consequences as a result of changes in the
measured in order to process
accurately capture the – Can have multiple secondary metrics
true effect of the
improvement.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


58

Selecting Projects

Project Charter – Metric Charts


The Project Charter
template includes the Genera ting Cha rts:
graphing capabilities
shown here. It is OK Primary and Secondary
to not use this Metrics should be
template but in any continually measured and
case ensure you are frequently updated during
regularly measuring the p
projects
j lifecycle.
y
the critical metrics.
Use them as your gauge
of Project Success and
Status. This is where your
Project’s progress will be
apparent.

– Displays Primary and Secondary metrics over time


– Should be updated regularly throughout the life of the project
– One for primary metric and one for each of the secondary metrics
– Typically time series plots

Project Charter Exercise

Using the Excel


file ‘Define Ex ercise objective: To begin planning the Project Charter
Templates.xls’, deliverable.
Project
j Charter, 1 Complete the Project Charter template to the best of your
1.
perform this ability.
exercise.
2. Be prepared to present your Stakeholder Analysis to your
mentor.

Project Charter Template.xls

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


59

Selecting Projects

What is the Financial Evaluation?

The fina ncia l eva lua tion esta blishes the va lue of the project.

The components are:


– Impact OK, let’s add it up!
• Sustainable
• One-off
– Allocations
All ti
• Cost Codes / Accounting System
– Forecast
• Cash flow
• Realization schedule

Typically a financial representative is responsible for evaluating the financial


impact of the project. The Belt works in coordination to facilitate the proper
information.

Standard financial principals should be followed at the beginning and end of the project to provide a
true measure of the improvement’s effect on the organization.

A financial representative of the firm should establish guidelines on how savings will be calculated
throughout the Six Sigma deployment.

Benefits Capture - Calculation “Template”

Whatever your
organization’s W ha tever your orga niza tion’s protocol ma y be these a spects
protocol may be should be a ccounted for w ithin a ny improvement project.
these aspects
should be There are two types of
accounted for I
Impact, One Off &
within any
M
P
A
Sustainable Impact “One-Off” Impact Sustainable
C

i
improvement t T

Cost Codes allocate the


project.
C
impact to the
O
S appropriate area in the
T Reduced Increased Implemen-
C
O
Costs Revenue
Costs
tation
Capital
“ Books”
D
E
S

Forecasts allow for


F
proper management of
O
R
E
Realization Schedule
(C h Fl
(Cash Flow)) projects and resources
C
A
S
T By Period
(i.e. Q1,Q2,Q3,Q4)

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


60

Selecting Projects

Benefits Capture - Basic Guidelines

• Benefits should be ca lcula ted on the ba seline of k ey


business process performa nce tha t rela te to a business
mea sure or KPI(s).

• The Project M ea sure (Prima ry M etric) ha s to ha ve a


direct link betw een the process a nd it KPI(s).

• Goa ls ha ve to be defined rea listica lly to a void under


or over setting.

• Benefits should be a nnua lized.

• B
Benefits
fit should
h ld be
b m ea sured
d in
i a ccorda
d nce w ith
Genera lly Accepted Accounting Principles (GAAP).

When calculating project benefits you should follow these steps.

Benefits Capture - Categorization


Here is an example of how to categorize your project’s impact.

A
• Projects directly impact the Income Statement or Cash Flow
Statement.

B
• Projects impact the Balance Sheet (working capital).

C• Projects avoid expense or investment due to known or expected


events in the future (Cost avoidance).

D• Projects are risk management, insurance, Safety, Health,


Environment and Community related projects which prevent or
reduce severity of unpredictable events.

You don’t want to take this one home!

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


61

Selecting Projects

Benefits Calculation Involvement & Responsibility

Project Selection D-M -A-I-C Implementa tion 6 M onth Audit

Financial Financial Financial Financial


Representative
p Representative
p Representative
p Representative

Champion Black Belt Champion Process Owner


& &
Process Owner Process Owner

It is highly recommended that you follow the involvement governance shown here.

B
Benefits
fit CCapture
t - Summary
S

• Performa nce tra ck ing for Six Sigma Projects should


use the sa me discipline tha t w ould be used for
tra ck ing a ny other high-profile projects.

• The A-B-C-D ca tegories ca n be used to illustra te the


im pa ct of your project or a “ portfolio” of projects.

• Esta blish The Governess Grid for Responsibility &


Involvement.

It’s a wrap!

Just some recommendations to consider when running your projects or program.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


62

Selecting Projects

Benefits Calculation Template

The Benefits Calculation Template facilitates and aligns with the aspects discussed for Project
Accounting.

The Excel file ‘Define Templates.xls’, BENEFITS CALCULATION TEMPLATE.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


63

Selecting Projects

At this point, you should be able to:

ƒ Understand the various approaches to project selection

ƒ Articulate the benefits of a “Structured Approach”

ƒ Refine and Define the business problem into a Project


Charter to display critical aspects of an improvement
project

ƒ Make initial financial impact estimate

You have now completed Define Phase – Selecting Projects.

Notes

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


64

Lean Six Sigma


Black Belt Training

Define Phase
Elements of Waste

Now we will continue in the Define Phase with “Elements of Waste”.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


65

Elements of Waste
Overview

The core fundamentals


of this phase are the 7 Understa nding Six Sigm a
components of waste
and 5S.
Six Sigm a Funda m enta ls
We will examine the
meaning of each of
these and show you
how to apply them
them. Selecting Projects

Elem ents of W a ste

77 Com
Components
ponents of
of W
W aaste
ste

55S
S

W ra p Up & Action Item s

Definition of Lean

“ Lean Enterprise is based on the premise that anywhere


work is being done, waste is being generated.

The Lean Enterprise seeks to organize its processes to the


optimum level, through the continual focus on the
identification and elimination of waste.”
-- Ba rba ra W hea t

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


66

Elements of Waste

Lean – History

1885 1913 1955 - 1990 1993 -


Craft Production Mass Production Toyota Production Lean Enterprise
- Machine then harden - Part inter-changeability System - "Lean" applied to all
- Fit on assembly - Moving production line - Worker as problem functions in enterprise
- Customization - Production engineering solver value stream
- Highly skilled workforce - "Workers don't like to - Worker as process - Optimization of value
- Low production rates think" owner enabled by: delivered to all
- High Cost - Unskilled labor -- Training stakeholders and
- High production rates -- Upstream quality enterprises in value chain
- Low cost -- Minimal inventory - Low cost
- Persistent quality J t i ti
-- Just-in-time - Improving productivity
problems - Eliminate waste - High quality product
- Inflexible models - Responsive to change - Greater value for
- Low cost stakeholders
- Improving productivity
- High quality product

Lean Manufacturing has been going on for a very long time, however the phrase is credited to
James Womac in 1990. A small list of accomplishments are noted in the slide above primarily
focused on higher volume manufacturing.

Lean Six Sigma


The essence of Lean is to Lea n/ Six Sigma combines the strengths of ea ch system:
concentrate effort on removing • Lea n • Six Sigma
waste while improving process – Guiding principles based – Focus on voice of the customer
flow to achieve speed and agility operating system – Data and fact based decision
at lower cost. The focus of Lean – Relentless elimination of all making
is to increase the percentage of waste – Variation
V i ti reduction
d ti tto near
value-added work performed by – Creation of process flow and perfection levels
a company. Lean recognizes demand pull – Analytical and statistical rigor
– Resource optimization
that most businesses spend a
– Simple and visual
relatively small portion of their
energies on the true delivery of
value to a customer. While all Strength: Efficiency Strength: Effectiveness
companies are busy, it is
estimated for some companies An Ex trem ely Pow erful Combina tion!
that as little as 10% of their
time is spent on value-added work, meaning as much as 90% of time is allocated to non value-added
activities, or waste.

Forms of waste include: Wasted capital (inventory), wasted material (scrap), wasted time (cycle time),
wasted human effort (inefficiency, rework) and wasted energy (energy inefficiency). Lean is a
prescriptive methodology for relatively fast improvements across a variety of processes, from
administrative to manufacturing applications. Lean enables your company to identify waste where it
exists. It also provides the tools to make improvements on the spot.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


67

Elements of Waste

Lean Six Sigma (cont.)


Lean focuses on what calls the Value Stream, the sequence of activities and work required to
produce a product or to provide a service. It is similar to a Linear Process Flow Map, but it
contains its own unique symbols and data. The Lean method is based on understanding how the
Value Stream is organized, how work is performed, which work is value added vs. non-value
added and what happens to products and services and information as they flow through the Value
Stream. Lean identifies and eliminates the barriers to efficient flow through simple, effective tools.

Lean removes many forms of waste so that Six Sigma can focus on eliminating variability.
Variation leads to defects
defects, which is a major source of waste
waste. Six Sigma is a method to make
processes more capable through the reduction of variation. Thus the symbiotic relationship
between the two methodologies.

Project Requirements for Lean

• Perhaps one of the most criminal employee performance issues in


today’s organizations is generated not by a desire to cheat one’s
employer but rather by a lack of regard to waste.
• In every work environment there are multiple opportunities for
reducing the non-value added activities that have (over time) become
an ingrained part of the standard operating procedure.
• These non-value added activities have become so ingrained in our
process that they are no longer recognized for what they are,
W ASTE.
• w a ste (v.) Anything other than the minimum amount of time,
material, people, space, energy, etc needed to add value to the
product or service you are providing.
• The Japanese word for waste is muda .

Get that stuff


outta here!

Employees at some level have been de-sensitized


de sensitized to waste: “That’s
That s what we
we’ve
ve always done.”
done.

Lean brings these opportunities for savings back into focus with specific approaches to finding
and eliminating waste.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


68

Elements of Waste

Seven Components of Waste

M uda is cla ssified into seven components:


– Overproduction
– Correction (defects)
– Inventory
– Motion
– Overprocessing
– Conveyance
– W aiting
Sometimes a dditiona l forms of muda a re a dded:
– Under use of talent
– Lack
L k off safety
f t

Being Lea n mea ns elimina ting w a ste.

Overproduction

Overproduction is producing more than the next step needs or more


than the customer buys.
– It may be the worst form of waste because it contributes to all
the others.
Examples are:

9Preparing extra reports

9Reports not acted upon or


even read

9Multiple copies in data storage

ordering materials
9Over-ordering
9Over

9Duplication of effort/reports

Waste of Overproduction relates to the excessive


accumulation of work-in-process (WIP) or finished
goods inventory.

P d i more parts
Producing t th
than necessary to
t satisfy
ti f the
th customer’s
t ’ quantity
tit demand
d d thus
th leading
l di tto
idle capital invested in inventory.

Producing parts at a rate faster than required such that a work-in-process queue is created –
again, idle capital.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


69

Elements of Waste

Correction

Correction or defects are as obvious as they sound


sound.

Examples are:

9Incorrect data entry

9Paying the wrong vendor

9Misspelled words in
communications

9Making bad product

9Materials or labor discarded


Eliminate erors!! during production

Waste of Correction includes the waste of handling


and fixing mistakes. This is common in both
manufacturing and transactional settings.

Correcting or repairing a defect in materials or parts adds unnecessary costs because of


additional equipment and labor expenses. An example is the labor cost of scheduling employees
to work overtime to rework defects.

Inventory

Inventory is the liability of materials that are bought, invested in and


not immediately sold or used.

Examples are:

9Transactions not processed

9Bigger “in box” than “out


box”

9Over-ordering materials
consumed in-house

9Over-ordering raw materials


– just in case

Waste of Inventory is identical to overproduction except


that it refers to the waste of acquiring raw material before
the exact moment that it is needed.

Inventory is a drain on an organization’s overhead. The greater the inventory, the higher the
overhead costs become. If quality issues arise and inventory is not minimized, defective material
i hidd
is hidden iin fifinished
i h d goods.
d

To remain flexible to customer requirements and to control product variation, we must minimize
inventory. Excess inventory masks unacceptable change-over times, excessive downtime,
operator inefficiency and a lack of organizational sense of urgency to produce product.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


70

Elements of Waste

Motion

M ti is
Motion i the
th unnecessary movementt off people
l and
d equipment.
i t
– This includes looking for things like documents or parts as well as
movement that is straining.

Examples are:

9Extra steps

9Extra data entry

9Having to look
for something

Waste of Motion examines how people


move to ensure that value is added.

Any movement of people or machinery that does not contribute added value to the product, i.e.
programming delay times and excessive walking distance between operations.

Overprocessing

Overprocessing is tasks, activities and materials that don’t add value.


– Can be caused by poor product or tool design as well as from not
understanding what the customer wants.

Examples are:

9Sign-offs

9Reports that contain more


information than the
customer wants or needs

9Communications, reports
9Communications reports,
emails, contracts, etc that
contain more than the
necessary points (briefer is
Waste of Over-processing relates to better)
over-processing anything that may not
be adding value in the eyes of the 9Voice mails that are too
customer. long

Processing work that has no connection to advancing the line or improving the quality of the
product. Examples include typing memos that could be had written or painting components or
fixtures internal to the equipment.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


71

Elements of Waste

Conveyance

Conveyance is the unnecessary movement of material and Goods.


– Steps in a process should be located close to each other so
movement is minimized.

Examples are:

9Extra steps in the


process

9Distance traveled

9Moving paper from


place to place

Waste of Conveyance is the movement of material.

Conveyance is incidental, required action that does not directly contribute value to the product.
Perhaps it must be moved however, the time and expense incurred does not produce product or
service characteristics that customers see.

It’s vital to avoid conveyance unless it is supplying items when and where they are needed (i.e.
just-in-time delivery).

Waiting

Waiting is nonproductive time due to lack of material, people, or


equipment.
– C b
Can be d
due tto slow
l or b
broken
k machines,
hi material
t i l nott arriving
i i on ti
time,
etc.

Examples are:

9Processing once each month


instead of as the work comes in

9Showing up on time for a


meeting that starts late

9Delayed work due to lack of


communication from another
internal group

Waste of Waiting is the cost of an idle resource.

Idle time between operations or events, i.e. an employee waiting for machine cycle to finish or a
machine waiting for the operator to load new parts.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


72

Elements of Waste

Waste Identification Exercise

Ex ercise objective: To identify waste that occurs in


your processes.
W rite an example of each type of muda below:

– Overproduction
p ___________________
– Correction ___________________
– Inventory ___________________
– Motion ___________________
– Overprocessing ___________________
– Conveyance
y ___________________
– W aiting ___________________

Notes

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


73

Elements of Waste

5S – The Basics

5S is a process designed to organize the workplace, keep it neat and


clean, maintain standardized conditions, and instill the discipline
required to enable each individual to achieve and maintain a world
class work environment.

Seiri - Put things in order

Seiton - Proper Arrangement

Seiso – Clean

Seiketsu – Purity

Shitsuke - Commitment

The term “5S” derives from the Japanese words for five practices leading to a clean and manageable
work area. The five “S” are:

‘Seiri' means to separate needed tools, parts and instructions from unneeded materials and to
remove the latter.
'Seiton' means to neatly arrange and identify parts and tools for ease of use.
'Seiso' means to conduct a cleanup campaign.
'Seiketsu'
Seiketsu means to conduct seiri, seiton and seiso at frequent, indeed daily, intervals to maintain a
workplace in perfect condition.
'Shitsuke' means to form the habit of always following the first four S’s.

Simply put, 5S means the workplace is clean, there is a place for everything and everything is in its
place. The 5S will create a work place that is suitable for and will stimulate high quality and high
productivity work. Additionally it will make the workplace more comfortable and a place of which you
can be proud.

Developed in Japan, this method assume no effective and quality job can be done without clean and
safe environment and without behavioral rules.

The 5S approach allows you to set up a well adapted and functional work environment, ruled by
simple yet effective rules. 5S deployment is done in a logical and progressive way. The first three S’s
are workplace actions, while the last two are sustaining and progress actions.

It is recommended to start implementing 5S in a well chosen pilot workspace or pilot process and
spread to the others step by step.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


74

Elements of Waste

English Translation
There have been many attempts to force 5 English “S”S words to maintain the original intent of 5S
from Japanese. Listed below are typical English words used to translate:
1. Sort (Seiri)
2. Straighten or Systematically Arrange (Seiton)
3. Shine or Spic and Span (Seiso)
4. Standardize (Seiketsu)
5. Sustain or Self-Discipline (Shitsuke)

Place things in such a


way that they can be
easily reached
whenever they are
needed

Straighten

Sort Shine

5S
Identify necessary items and Visual sweep of areas,
remove unnecessary ones, use eliminate dirt, dust and
time management scrap. Make workplace
shine.

Self-Discipline
Standardize
Make 5S strong in
Work to standards,
habit. Make
maintain standards,
problems appear and
wear safety equipment.
solve them.

Regardless of which “S” words you use, the intent is clear: Organize the workplace, keep it neat and
clean, maintain standardized conditions and instill the discipline required to enable each individual to
achieve and maintain a world class work environment.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


75

Elements of Waste

5S Exercise

Ex ercise objective: : To identify elements of 5S in


your workplace.
W rite an example for each of the 5S’s below:

• Sortt
S ____________________
• Straighten ____________________
• Shine ____________________
• Standardize ____________________
• Self-Discipline ____________________

Notes

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


76

Elements of Waste

At this point, you should be able to:

ƒ Describe 5S

ƒ Identify and describe the 7 Elements of Waste

ƒ Provide examples of how Lean Principles can affect your area

You have now completed Define Phase – Elements of Waste.

Notes

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


77

Lean Six Sigma


Black Belt Training

Define Phase
Wrap Up and Action Items

Now we will conclude the Define Phase with “Wrap Up and Action Items”.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


78

Wrap Up and Action Items

Define Phase Overview—The Goal

The goa l of the Define Pha se is to:

• Identify a process to improve and develop a specific Six Sigma


project.
– Six Sigma Belts define critical processes
processes, sub-processes and
elaborate the decision points in those processes.

• Define is the “ contract” phase of the project. W e are determining


exactly what we intend to work on and estimating the impact to
the business.

• At the completion of define you should have a description of the


process defect that is creating waste for the business.

Define Action Items

At this point you should a ll understa nd w ha t is


necessa ry to complete these a ction items a ssocia ted
w ith Define.
Define

– Charter Benefits Analysis


– Team Members
– Process Map – high level
– Primary Metric
– Secondary Metric(s)
– Lean Opportunities
– Stakeholder Analysis
Deliver
– Project Plan
– Issues and Barriers
the
Goods!
Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com
79

Wrap Up and Action Items

Six Sigma Behaviors

• Being tenacious, courageous

• Being rigorous, disciplined

• Making data-based
data based decisions

• Embracing change & continuous learning Walk


• Sharing best practices
the
Walk!
Ea
Each
ch ““pla
player ” in
y er” in the
the Six
Six Sigm
Sigmaa process
process must
m ust be
be
AA RO LE M O DEL
RO LE M O DEL
for
for the
the Six
Six Sigm
Sigmaa culture.
culture.

Define Phase — The Roadblocks

Look for the potential roadblocks and plan to address them before
they become problems:
– N o historical data exists to support the project.
– Team members do not have the time to collect data.
– Data presented is the best guess by functional managers.
– Data is communicated from poor systems.
– The project is scoped too broadly.
– The team creates the “ ideal
ideal” Process Map rather than the “ as
is” Process Map.

Clear the road –


I’m comin’
through!

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


80

Wrap Up and Action Items

DMAIC Roadmap
Process Owner
Champion/

Identify Problem Area

Determine Appropriate Project Focus


Define

Estimate COPQ

Establish Team
Measure

Assess Stability, Capability, and Measurement Systems

Identify and Prioritize All X’s


x’s
Analyze

Prove/Disprove Impact X’
x’s
s Have On Problem

Identify, Prioritize, Select Solutions Control or Eliminate X’s


x’s Causing Problems
Improve

Implement Solutions to Control or Eliminate X’s


x’s Causing Problems
Control

Implement Control Plan to Ensure Problem Doesn


Does ’Not
t Return
Return

Verify Financial Impact

Define Phase Deployment


The importance of the Define
Phase is to begin to understand Business Case
Selected
the problem and formulate it into a
project Notice that if the
project.
N otify Belts and Stakeholders
Recommended Project Focus is
approved the next step would be
Create High-Level Process Map
team selection.
Determine Appropriate Project Focus
(Pareto, Project Desirability)

Define & Charter Project


(Problem Statement, Objective, Primary Metric, Secondary Metric)

N Estimate COPQ

Approved
Project Recommend Project Focus
Focus
Y

Create Team

Charter Team

Ready for Measure

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


81

Wrap Up and Action Items

Action Items Support List

Define Questions
Step One: Project Selection, Project Definition And Stakeholder Identification
Project Charter
• What is the problem statement? Objective?
• Is the business case developed?
• What is the primary metric?
• What are the secondary metrics?
• Why did you choose these?
• What are the benefits?
• Have the benefits been quantified? It not, when will this be done?
Date:____________________________
• Who is the customer (internal/external)?
• Has the COPQ been identified?
• Has the controller’s office been involved in these calculations?
• Who are the members on your team?
• Does anyone require additional training to be fully effective on the team?
Voice of the Customer (VOC) and SIPOC defined
• Voice of the customer identified?
• Key issues with stakeholders identified?
• VOC requirements identified?
• Business Case data gathered, verified and displayed?
Step Two: Process Exploration
Processes Defined and High Level Process Map
• Are the critical processes defined and decision points identified?
• Are all the key attributes of the process defined?
• Do you have a high level process map?
• Who was as in
involved
ol ed in its de
development?
elopment?
General Questions
• Are there any issues/barriers that prevent you from completing this phase?
• Do you have adequate resources to complete the project?
• Have you completed your initial Define report out presentation?

These are some additional questions to ensure all the deliverables are achieved.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


82

Wrap Up and Action Items

At this point, you should:

ƒ Have a clear understanding of the specific action items

ƒ Have started to develop a project plan to complete the action items

ƒ Have identified ways to deal with potential roadblocks

ƒ Be ready to apply the Six Sigma method within your business

You have now completed Define Phase.

Notes

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


86

Lean Six Sigma


Black Belt Training

Measure Phase
Welcome to Measure

Now that we have completed the Define Phase we are going to jump into the Measure Phase.

Here you enter


H t ththe world
ld off measurement,
t where
h you can didiscover th
the ultimate
lti t source off
problem-solving power: data. Process improvement is all about narrowing down to the vital few
factors that influence the behavior of a system or a process. The only way to do this is to
measure and observe your process characteristics and your critical-to-quality characteristics.
Measurement is generally the most difficult and time-consuming phase in the DMAIC
methodology. But if you do it well, and right the first time, you will save your self a lot of trouble
later and maximize your chance of improvement.

Welcome to the Measure Phase - will give you a brief look at the topics we are going to cover.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


87

Welcome to Measure

Overview

These are the modules


we will cover in the Welcome
Welcome to
to Measure
Measure
Measure Phase.

Process
Process Discovery
Discovery

Six
Six Sigma
Sigma Statistics
Statistics

Measurement
Measurement System
System Analysis
Analysis

Process
Process Capability
Capability

Wrap
Wrap Up
Up &
& Action
Action Items
Items

DMAIC Roadmap
Process Owner
Champion/

Identify Problem Area

D t
Determine
i A Appropriate
i t PProject
j tF Focus
Define

Estimate COPQ

Establish Team
Measure

Assess Stability, Capability, and Measurement Systems

Identify and Prioritize All X’s


alyze
Ana

Prove/ Disprove Impact X’s


X s Have On Problem
Improve

Identify, Prioritize, Select Solutions Control or Eliminate X’s Causing Problems

Implement Solutions to Control or Eliminate X’s Causing Problems


Control

Implement Control Plan to Ensure Problem Doesn’t Return

Verify
y Financial Impact
p

Here is the overview of the DMAIC process. Within Measure we are going to start getting into details about
process performance, measurement systems and variable prioritization.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


88

Welcome to Measure

Measure Phase Deployment

Detailed Problem Statement Determined

Detailed Process Mapping

Identify All Process X’s Causing Problems (Fishbone, Process Map)

Select the Vital Few X’s Causing Problems (X-Y Matrix, FMEA)

Assess Measurement System

Y
Repeatable &
Reproducible?
N

Implement Changes to Make System Acceptable

Assess Stability (Statistical Control)

Assess Capability (Problem with Centering/Spread)

Estimate Process Sigma Level

Review Progress with Champion

Ready for Analyze

This provides a process look at putting “Measure” to work. By the time we complete this phase you
will have a thorough understanding of the various Measure Phase concepts
concepts.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


89

Lean Six Sigma


Black Belt Training

Measure Phase
Process Discovery

Now we will continue in the Measure Phase with “Process Discovery”.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


90

Process Discovery

Overview

Welcome
Welcome to
to Measure
Measure

Process
Process Discovery
Discovery

Cause
Cause &
& Effect
Effect Diagram
Diagram

Detailed
Detailed Process
Process Mapping
Mapping

Cause
Cause and
and Effect
Effect Diagrams
Diagrams

FMEA
FMEA

Six
Six Sigma
Sigma Statistics
Statistics

Measurement
Measurement System
System Analysis
Analysis

Process
Process Capability
Capability

Wrap
Wrap Up
Up &
& Action
Action Items
Items

The purpose of this module is highlighted above. We will review tools to help facilitate Process
Discovery.

This will be a lengthy step as it requires a full characterization of your selected process
process.

There are four key deliverables from the Measure Phase:


(1) A robust description of the process and its workflow
(2) A quantitative assessment of how well the process is actually working
(3) An assessment of any measurement systems used to gather data for making decisions or to
describe the performance of the process
(4) A “short” list of the potential causes of our problem, these are the X’s that are most likely
related to the problem
problem.

On the next lesson page we will help you develop a visual and mental model that will give you
leverage in finding the causes to any problem..

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


91

Process Discovery

Overview of Brainstorming Techniques

Cause and Effect Diagram


People Machine Method

The Y
The or
Problem
The X’s Problem
Condition

(Causes)

l
Material Measurement Environment Categories

You will need to use brainstorming techniques to identify all possible problems and their causes.
Brainstorming techniques work because the knowledge and ideas of two or more persons is
always greater than that of any one individual.

Brainstorming will generate a large number of ideas or possibilities in a relatively short time.
Brainstorming tools are meant for teams
teams, but can be used at the individual level also
also.
Brainstorming will be a primary input for other improvement and analytical tools that you will use.

You will learn two excellent brainstorming techniques, cause and effect diagrams and affinity
diagrams. Cause and effect diagrams are also called Fishbone Diagrams because of their
appearance and sometimes called Ishikawa diagrams after their inventor.

In a brainstorming session, ideas are expressed by the individuals in the session and written down
without debate or challenge
challenge. The general steps of a brainstorming sessions are:

1. Agree on the category or condition to be considered.


2. Encourage each team member to contribute.
3. Discourage debates or criticism, the intent is to generate ideas and
not to qualify them, that will come later.
4. Contribute in rotation (take turns), or free flow, ensure every member
has an equal opportunity.
5. Listen to and respect the ideas of others.
6. Record all ideas generated about the subject.
7. Continue until no more ideas are offered.
8. Edit the list for clarity and duplicates.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


92

Process Discovery

Cause and Effect Diagram

Cause and Effect Diagram A commonly used tool


People Machine Method
to solicit ideas by
using categories to
The Y stimulate cause and
The X’s
The or
Problem
Problem
Condition
effect relationship with
(Causes) a problem. It uses
verbal inputs in a team
l
Material Measurement Environment Categories environment.

Products Categories for the legs of the Transactional


– Measurement diagram can use templates – People
– People for products or transactional – Policy
– Method symptoms Or you can select
symptoms. – Procedure
– Materials the categories by process – Place
– Equipment step or what you deem – Measurement
– Environment appropriate for the situation. – Environment

A cause and effect diagram is a composition of lines and words representing a meaningful
relationship between an effect,
effect or condition
condition, and its causes
causes. To focus the effort and facilitate thought
thought,
the legs of the diagram are given categorical headings. Two common templates for the headings are
for product related and transactional related efforts. Transactional is meant for processes where
there is no traditional or physical product; rather it is more like an administrative process.

Transactional processes are characterized as processes dealing with forms, ideas, people,
decisions and services. You would most likely use the product template for determining the cause of
burnt pizza and use the transactional template if you were trying to reduce order defects from the
order taking process
process. A third approach is to identify all categories as you best perceive them
them.

When performing a cause and effect diagram, keep drilling down, always asking why, until you find
the root causes of the problem. Start with one category and stay with it until you have exhausted all
possible inputs and then move to the next category. The next step is to rank each potential cause by
its likelihood of being the root cause. Rank it by the most likely as a 1, second most likely as a 2 and
so on. This make take some time, you may even have to create sub-sections like 2a, 2b, 2c, etc.
Then come back to reorder the sub-section in to the larger ranking. This is your first attempt at really
finding the Y=f(X); remember the funnel? The top X’s have the potential to be the Critical X’s, those
X’s which exert the most influence on the output Y.

Finally you will need to determine if each cause is a control or a Noise factor. This as you know is a
requirement for the characterization of the process. Next we will explain the meaning and methods
of using some of the common categories.

There may be several interpretations of some of the Process Mapping symbols; however, just about
everyone uses these primary symbols to document processes. As you become more practiced you
will find additional symbols useful, i.e. reports, data storage etc. For now we will start with just these
symbols.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


93

Process Discovery

Cause and Effect Diagram

The Measurement category groups causes related to the measurement and


measuring of a process activity or output:
Examples of questions to ask:
• Is there a metric issue? Measurement
• Is there a valid measurement
system? Is the data good
enough?h?
Y
• Is data readily available?

The People category groups root causes related to people, staffing, and
organizations:
Examples
p of q
questions to ask: People
p
• Are people trained, do they
have the right skills?
• Is there person to person
Y
variation?
• Are people over - worked?

Cause and Effect Diagram

The Method category groups root causes related to how the work is done, the
way the process is actually conducted:
Examples
p of q
questions to ask: Method
• How is this performed?
• Are procedures correct?
• What might unusual? Y

The Materials category groups root causes related to parts, supplies, forms or
information needed to execute a process:

Examples of questions to ask:


• Are bills of material current? Y
• Are parts or supplies obsolete?
• Are there defects in the materials
Materials

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


94

Process Discovery

Cause and Effect Diagram

The Equipment category groups root causes related to tools used in the process:
Examples of questions to ask:
• Have machines been serviced recently,
what is the uptime?
• Have tools been properly maintained? Y
• Is there variation?

Equipment

The Environment (a.k.a. Mother Nature) category groups root causes related to
our work environment, market conditions, and regulatory issues.
Examples of questions to ask:
• Is the workplace safe and
comfortable? Y
• Are outside regulations impacting the
business?
• Does the company culture aid the
process? Environment

Classifying the X’s

The Cause & Effect Diagram is simply a tool to generate opinions


about possible causes for defects.

For each of the X’s identified in the Fishbone diagram classify them
as follows:
– Controllable – C (Knowledge)
– Procedural – P (People, Systems)
– Noise – N (External or Uncontrollable)

Think of procedural as a subset of controllable. Unfortunately, many


procedures within a company are not well controlled and can cause
the defect level to go up. The classification methodology is used to
separate the X’s so they can be used in the X-Y Diagram and the
FMEA taught later in this module.

WHICH X’s
X s CAUSE DEFECTS?

The Cause and Effect Diagram is an organized way to approach brainstorming. This approach allows
us to further organize ourselves by classifying the X’s into controllable, procedural or noise types.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


95

Process Discovery

Chemical Purity Example

Measurement Manpower Materials

Incoming QC (P) Training on method (P) Raw Materials (C)

Measurement Insufficient staff (C)


Method (P) Skill Level (P) Multiple Vendors (C)

Measurement
Capability (C) Adherence to procedure (P) S
Specifications
ifi ti (C)

Work order variability (N)

Chemical
Startup inspection (P) Room Humidity (N) Column Capability (C) Purity
Handling (P) RM Supply in Market (N) Nozzle type (C)
Purification Method (P) Shipping Methods (C) Temp controller (C)
Data collection/feedback
(P)

Methods Mother Nature Equipment

This example of the Cause and Effect Diagram is of chemical purity. Notice how the input variables for
each branch are classified as Controllable, Procedural and Noise.

Cause & Effect Diagram - MINITAB™

Below is a Cause & Effect Diagram for surface flaws. The next few
slides will demonstrate how to create it in MINITAB™.

The Fishbone Diagram shown here for surface flaws was generated in MINITAB™. We will now
review the various steps for creating a Cause and Effect Diagram using the MINITAB™
statistical software package.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


96

Process Discovery

Cause & Effect Diagram - MINITAB™

Open the MINITAB™ Project “Measure Data Sets.mpj” and select the worksheet
Surfaceflaws.mtw.

Open the MINITAB™ worksheet “Surfaceflaws.mtw”.

Take a few moments to study the worksheet. Notice the first 6 columns are the classic bones for a
Fishbone. Each subsequent column is labeled for one of the X’s listed in one of the first six columns
and are the secondary bones
bones.

After you have entered the Labels, click on the first field under the “Causes” column to bring up the
list of branches on the left hand side. Next double-click the first branch name on the left hand side to
move “C1 Man” underneath “Causes”.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


97

Process Discovery

Cause & Effect Diagram - MINITAB™ (cont.)

To continue identifying
the secondary
branches, select the
button, “Sub…” to the
right of the “Label”
column.

Click on the third field


under “Causes” to
bring up the list of
branches on the left
hand side.

Next double-click the


seventh branch name
on the left hand side to
move “C7 Training”
underneath “Causes”
then select “OK” and
repeat for each
remaining sub branch.

In order to adjust the Fishbone Diagram so the main causes titles are
not rolled grab the line with your mouse and move the entire bone.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


98

Process Discovery

Cause & Effect Diagram Exercise

Exercise objective: Create a Fishbone Diagram.

1. Retrieve the high level Process Map for your project


and use it to complete a Fishbone, if possible include
your project team.

Don ’t let the


big one get
away!

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


99

Process Discovery

Overview of Process Mapping

In order to correctly m a na ge a process


process, you
m ust be a ble to describe it in a w a y tha t ca n be
ea sily understood.
– The preferred method for describing a process is
to identify it with a generic name, show the
workflow with a Process Map and describe its
purpose with an operational description.
– The
Th fifirstt activity
ti it off the
th Measure
M Phase
Ph is
i to
t
adequately describe the process under
investigation.

ct
Sta rt Step A Step B Step C St
Step D Fi i h
Finish

e
sp
In

Process Mapping, also called flowcharting, is a technique to visualize the tasks, activities and steps
necessary to produce a product or a service. The preferred method for describing a process is to
identify it with a generic name, show the workflow with a Process Map and describe its purpose with
an operational description
description.

Remember that a process is a blending of inputs to produce some desired output. The intent of each
task, activity and step is to add value, as perceived by the customer, to the product or service we are
producing. You cannot discover if this is the case until you have adequately mapped the process.

There are many reasons for creating a Process Map:


- It helps all process members understand their part in the process and how their process fits into the
bigger picture
picture.
- It describes how activities are performed and how the work effort flows, it is a visual way of standing
above the process and watching how work is done. In fact, process maps can be easily uploaded into
model and simulation software where computers allow you to simulate the process and visually see
how it works.
- It can be used as an aid in training new people.
- It will show you where you can take measurements that will help you to run the process better.
- It will help
p yyou understand where pproblems occur and what some of the causes may y be.
- It leverages other analytical tools by providing a source of data and inputs into these tools.
- It identifies and leads you to many important characteristics you will need as you strive to make
improvements.

Individual maps developed by Process Members form the basis of Process Management. The
individual processes are linked together to see the total effort and flow for meeting business and
customer needs.

In order to improve or to correctly manage a process, you must be able to describe it in a way that
can be easily understood, that is why the first activity of the Measure Phase is to adequately describe
the process under investigation. Process Mapping is the most important and powerful tool you will
use to improve the effectiveness and efficiency of a process.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


100

Process Discovery

Information from Process Mapping


These are more reasons
why Process Mapping is By mapping processes we can identify many important
the most important and characteristics and develop information for other analytical tools:
powerful tool you will
need to solve a problem. 1. Process inputs (X’s)
It has been said that Six 2. Supplier requirements
Sigma is the most 3. Process outputs (Y’s)
efficient problem solving 4. Actual customer needs
methodology
h d l available.
il bl 5
5. All value-added
l dd d andd non-value
l added
dd d process ttasks
k and
d steps
t
This is because work 6. Data collection points
done with one tool sets •Cycle times
up another tool, very little •Defects
information and work is •Inventory levels
wasted. Later you will •Cost of poor quality, etc.
learn to how to further 7. Decision points
use the information and 8. Problems that have immediate fixes
knowledge you gather 9. Process control needs
from Process Mapping.

Process Mapping

There are usually three views


Th
There are usually
ll th
three views
i off a process:
of a process: The first view is
“what you think the process
is” in terms of its size, how
1 2 3 work flows and how well the
process works. In virtually all
What you THINK it is.. What it ACTUALLY is.. What it SHOULD be..
cases the extent and difficulty
of performing the process is
understated.
d t t d

It is not until someone


Process Maps the process
that the full extent and
difficulty is known, and it
virtually is always larger than
what we thought, is more
difficult and it cost more to operate than we realize. It is here that we discover the hidden operations
also. This is the second view: “what the process actually is”.

Then there is the third view: “what it should be”. This is the result of process improvement activities. It
is precisely what you will be doing to the key process you have selected during the weeks between
classes. As a result of your project you will either have created the “what it should be” or will be well
on your way to getting there. In order to find the “what it should be” process, you have to learn
process mapping and literally “walk”
walk the process via a team method to document how it works. This is
a much easier task then you might suspect, as you will learn over the next several lessons.

We will start by reviewing the standard Process Mapping symbols.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


101

Process Discovery

Standard Process Mapping Symbols

Standard symbols for process mapping (available in Microsoft


Office™, Visio™, iGrafx™ , SigmaFlow™ and other products):

A RECTANGLE indicates an A PARALLELAGRAM shows


activity. Statements within that there are data
the rectangle should begin
with a verb

A DIAMOND signifies a decision An ELLIPSE shows the start


point.
i t OOnly
l ttwo paths
th emerge from
f and end of the process
a decision point: No and Yes

An ARROW shows the A CIRCLE WITH A LETTER OR


1 NUMBER INSIDE symbolizes
connection and direction
th continuation
the ti ti off a
of flow
flowchart to another page

There may be several interpretations of some of the Process Mapping symbols; however, just
about everyone uses these primary symbols to document processes. As you become more
practiced you will find additional symbols useful, i.e. reports, data storage etc. For now we will
start with just these symbols.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


102

Process Discovery

Process Mapping Levels

Levell 1 – The
L Th Macro
M Process
P Map,
M sometimes
ti called
ll d a
Management level or viewpoint.
Calls
Customer Take Make Cook Pizza Box Deliver Customer
for
Hungry Order Pizza Pizza Correct Pizza Pizza Eats
Order

Level 2 – The Process Map, sometimes called the Worker level or


viewpoint This example is from the perspective of the pizza chef
viewpoint.
Pizza
Dough

No
Take Order Add Place in Observe Check Yes Remove
from Cashier Ingredients Oven Frequently if Done from Oven 1

Start New
Pizza

Scrap
No
Tape
Pizza Place in Put on
1 Correct Box
Order on Delivery Rack
Yes Box

Level 3 – The Micro Process Map, sometimes called the Improvement


level or viewpoint. Similar to a level 2, it will show more steps and tasks
and on it will be various performance data; yields, cycle time, value and
non value added time, defects, etc.

Before Process Mapping starts, you have to learn about the different level of detail on a Process
Map and the different types of Process Maps. Fortunately these have been well categorized and
are easy to understand.

There are three different levels of Process Maps. You will need to use all three levels and you most
likely will use them in order from the macro map to the micro map. The macro map contains the
least level of detail, with increasing detail as you get to the micro map. You should think of and use
the level of Process Maps in a way similar to the way you would use road maps. For example, if
you want to find a country, you look at the world map. If you want to find a city in that country, you
look at the country map. If you want to find a street address in the city, you use a city map. This is
the general rule or approach for using Process Maps.

Thee Macro
ac o Process
ocess Map,ap, what
at iss called
ca ed tthe
e Level
e e 1 Map,
ap, sshows
o s ttheebbig
gppicture,
ctu e, you will use tthis
s to
orient yourself to the way a product or service is created. It will also help you to better see which
major step of the process is most likely related to the problem you have and it will put the various
processes that you are associated with in the context of the larger whole. A Level 1 PFM,
sometimes called the “management” level, is a high-level process map having the following
characteristics:

ƒ Combines related activities into one major processing step


ƒ Illustrates where/how the process fits into the big picture
ƒ Has minimal detail
ƒ Illustrates only major process steps
ƒ Can be completed with an understanding of general process steps and the
purpose/objective of the process

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


103

Process Discovery

Process Mapping Levels (cont.)

The next level is generically called the Process Map


Map. You will refer to it as a Level 2 Map and it
identifies the major process steps from the workers point of view. In the pizza example above,
these are the steps the pizza chef takes to make, cook and box the pizza for delivery. It gives you
a good idea of what is going on in this process, but could can you fully understand why the
process performs the way it does in terms of efficiency and effectiveness, could you improve the
process with the level of knowledge from this map?

Probably not, you are going to need a Level 3 Map called the Micro Process Map. It is also known
as the improvement view off a process. There is however a lot off value in the Level 2 Map,
because it is helping you to “see” and understand how work gets done, who does it, etc. It is a
necessary stepping stone to arriving at improved performance.

Next we will introduce the four different types of Process Maps. You will want to use different
types of Process Maps, to better help see, understand and communicate the way processes
behave.

Types of Process Maps

The Linear-Flow Process Map There are four


Calls
Customer
Hungry
for
Order
Take
Order
Make
Pizza
Cook
Pizza
Pizza
Correct
Box
Pizza
Deliver
Pizza
Customer
Eats types of Process
M
Maps that
th t you will
ill
As the name states, this diagram shows the process steps in a sequential flow, generally ordered
from an upper left corner of the map towards the right side. use. They are the
The Deployment-Flow or Swim Lane Process Map Linear Flow Map,
the deployment or
Customer

Customer Calls for Customer


Hungry Order Eats
Swim Lane Flow
Map, the S-I-P-0-C
Cashier

Take
Order

Map (pronounced
sipoc) and the
Cook

M k
Make C
Cookk Pizza Box
Pizza Pizza Correct Pizza

Value Stream
Map.
Deliverer

Deliver
Pizza

The value of the Swim Lane map is that is shows you who or which department is responsible for
While they all
the steps in a process. This can provide powerful insights in the way a process performs. A
timeline can be added to show how long it takes each group to perform their work. Also each
show how work
time work moves across a swim lane, there is a “Supplier – Customer” interaction. This is usually
where bottlenecks and queues form.
gets done, they
emphasize
different aspects of process flow and provide you with alternative ways to understand the
behavior of the process so you can do something about it. The Linear Flow Map is the most
traditional and is usually where most start the mapping effort.

The Swim Lane Map adds another dimension of knowledge to the picture of the process: Now
you can see which department area or person is responsible. You can use the various types of
maps in the form of any of the three levels of a Process Map.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


104

Process Discovery

Process Maps – Examples for Different Processes

L in e a r P r o c e s s M a p fo r D o o r M a n u fa c tu r in g
B e g in P r e p d o o r s In s p e c t P r e -c le a n in g A

R e tu r n
fo r
r e w o r k

M a r k f o r d o o r
In s ta ll in to In s p e c t
A w o r k jig
L ig h t s a n d in g
f in is h
h a n d le B
d r illin g

R e w o r k

D e - b u r r a n d A p p ly p a r t M o v e t o
B D r ill h o le s
s m o o th h o le n u m b e r fin is h in g
C

S c r a t c h F in a l A p p ly s t a in
C In s p e c t In s p e c t E n d
r e p a ir c le a n in g a n d d r y

S c r a p

S w im L a n e P r o c e s s M a p fo r C a p ita l E q u ip
P r e p a r e
Business

D e fin e p a p e r w o r k R e v ie w &
R e c e iv e &
Unit

( C A A R & a p p r o v e
N e e d s in s t a lla tio n C A A R
u s e
r e q u e s t )

R e v ie w &
C o n f ig u r e
I.T.

a p p r o v e
& in s t a ll
s t a n d a r d
Finance

R e v ie w &
Is s u e
a p p r o v e
p a y m e n t
C A A R
Corporate
Top Mgt/

R e v ie w &
a p p r o v e
C A A R
Procurement

A c q u ir e
e q u ip m e n t

S u p p lie r S u p p lie r
Supplier

S h ip s P a id

2 1 d a y s 6 d a y s 1 5 d a y s 5 d a y s 1 7 d a y s 7 d a y s 7 1 d a y s 5 0 d a y s

Types of Process Maps


The SIPOC diagram is The SIPOC “Supplier – Input – Process – Output – Customer”
especially useful after Process Map
you have been able to Suppliers Inputs Process O utputs Custom ers Requirem ents

construct either a Level 1 r ATT Phones


Ph r Pi
Pizza type r See Below r Pi
Price r C k
Cook r C
Complete
l callll < 3 min
i
r Office Depot r Size r Order confirmation r Accounting r Order to Cook < 1 minute
or Level 2 Map because r TI Calculators r Quantity r Bake order r Complete bake order

it facilitates your r N EC Cash Register r


r
Extra Toppings
Special orders
r
r
Data on cycle time
Order rate data
r
r
Correct bake order
Correct address

gathering of other r Drink types & quantities r Order transaction r Correct Price
r Other products r Delivery info
pertinent data that is r Phone number

affecting the process in a r


r
Address

N ame
systematic way. It will r Time, day and date
r Volume
help you to better see
and understand all of the Level 1 Process M a p for Custom er O rder Process
influences affecting the
Call for Answer W rite Confirm Sets Address Order to
behavior and an Order Phone Order Order Price & Phone Cook

performance of the
process. The SIPOC diagram is especially useful after you have been able to construct
either a Level 1 or Level 2 Map because it facilitates your gathering of other
You may also add a pertinent data that is affecting the process in a systematic way.
requirements section
to both the supplier side and the customer side to capture the expectations for the inputs and
the outputs of the process. Doing a SIPOC is a great building block to creating the Level 3
Micro Process Map. The two really compliment each other and give you the power to make
improvements to the process.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


105

Process Discovery

Types of Process Maps


The Value Stream Map p is a The Value Stream Map
specialized map that helps Process Steps
Log Route Disposition Cut Check Mail Delivery
you to understand -Computer
-1 Person
-Department
Assignments
-Guidelines
-1 Person
-Computer -Envelops
-Postage
Size of work queue or I I I I -Printer I
numerous performance inventory
-1 Person -1 Person -1 Person

1,700 2,450 1,840


metrics associated primarily Process Step
4,300 C/T = 15 sec
Uptime = 0.90
7,000 C/T = 75 sec
Uptime = 0.95
C/T = 255 sec
Uptime = 0.95
C/T = 15 sec
Uptime = 0.85
C/T = 100 sec
Uptime = 0.90
Hours = 8 Hours = 8 Hours = 8 Hours = 8 Hours = 8
with the speed of the Time Parameters Breaks = 0.5
Hours
Breaks = 0.5
Hours
Breaks = 0.5
Hours
Breaks = 0.5
Hours
Breaks = 0.5
Hours
Available =6.75 Available =7.13 Available =7.13 Available =6.38 Available =6.75
process, but has many Sec.
Avail. = 24,300
Sec.
Avail. = 25,650
Sec.
Avail. = 25,650
Sec.
Avail. = 22,950
Sec.
Avail. = 24,300
Step Processing Time
other important data. While Days of Work in 15 sec 75 sec 255 sec 15 sec 100 sec

thi P
this Process M Map llevell iis att queue 2.65 days 20.47 days 16.9 days 1.60 days 7.57 days

the macro level, the Value Process Performance


Metrics IPY = 0.92 IPY = .94 IPY = .59 IPY = .96 IPY = .96
Stream Map provides you a Defects = 0.08
RTY = .92
Defects = .06
RTY = .86
Defects = .41
RTY = .51
Defects = .04
RTY = .49
Defects = .04
RTY = .47
Rework = 4.0% Rework = 0.0 Rework = 10% Rework = 0.0 Rework = 0.0
lot of detailed performance Material Yield = .96
Scrap = 0.0%
Material Yield = .94
Scrap = 0.0%
Material Yield = .69
Scrap = 0.0%
Material Yield = .96
Scrap = 0.0%
Material Yield = .96
Scrap = 4.0%
Aggregate Performance
data for the major steps of Metrics
Cum Material Yield = .96 X .94 X .69 X .96 X .96 = .57 RTY = .92 X .94 X .59 X .96 X .96 = .47
the process. It is great for
finding bottlenecks in the The Value Stream Map is a very powerful technique to understand the
process.
p velocity of process transactions, queue levels and value added ratios in
both manufacturing and non-manufacturing processes.

Process Mapping Exercise – Going to Work

The purpose of this exercise is to develop a Level 1 Macro, Linear


Process Flow Map and then convert this map to a Swim Lane Map.

Read the following background for the exercise: You have been concerned
about your ability to arrive at work on time and also the amount of time it takes
from the time your alarm goes off until you arrive at work. To help you better
understand both the variation in arrival times and the total time,, you
y decide to
create a Level 1 Macro Process Map. For purposes of this exercise, the start is
when your alarm goes off the first time and the end is when you arrive at your
work station.

Task 1 – Mentally think about the various tasks and activities that you routinely
do from the defined start to the end points of the exercise.
Task 2 – Using a pencil and paper create a linear process map at the macro
level but with enough detail that you can see all the major steps of your
level,
process.
Task 3 – From the Linear Process Map, create a swim lane style Process Map.
For the lanes you may use the different phases of your process, such as the
wake up phase, getting prepared, driving, etc.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


106

Process Discovery

A Process Map of Process Mapping

Process Mapping
follows a general Select the process
Create the Level 2 Create a Level 3
PFM PFM
order, but sometimes
you may find it
necessary, even Determine Add Performance
approach to map Perform SIPOC
advisable to deviate the process data

somewhat. However,
you will find this a
good path to follow Complete Level 1
PFM worksheet
Identify all X’s and Identify VA/NVA
Y’s steps
as it has proven itself
to generate
significant results. Identify customer
Create Level 1 PFM
requirements
On the lessons
ahead we will always
show you where you Define the scope Identify supplier
for the Level 2 PFM requirements
are at in this
sequence of tasks
for Process Mapping. Before we begin our Process Mapping we will first start you off with how to
determine the approach to mapping the process.

Basically there are two approaches: the individual and the team approach.

Process Mapping Approach

Select the Using the Individual Approach


process 1. Start with the Level 1 Macro Process Map.
2. Meet with process owner(s) / manager(s). Create a
Level 1 Map and obtain approval to interview
Determine
approach to process members.
map the 3 Starting with the beginning of the process
3. process, pretend
process
you are the product or service flowing through the
process, interview to gather information.
Complete
Level 1 4. As the interview progress, assemble the data into a
PFM Level 2 PFM.
worksheet
5. Verify the accuracy of the Level 2 PFM with the
individuals who provided input.
Create
Level 1
6. Update the Level 2 PFM as needed.
PFM

Using the Team Approach


Define the
scope for 1. Follow the Team Approach to Process Mapping
the Level 2
PFM

If you decide to do the individual approach, here are a few key factors: You must pretend that you are the
product or service flowing through the process and you are trying to “experience” all of the tasks that
h
happen th
through
h th
the various
i steps.
t

You must start by talking to the manager of the area and/or the process owner. This is where you will
develop the Level 1 Macro Process Map. While you are talking to him, you will need to receive permission
to talk to the various members of the process in order to get the detailed information you need.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


107

Process Discovery

Process Mapping Approach

Process Mapping
P M i
works best with a Select the Using the Team Approach
process 1. Start with the Level 1 Macro Process Map.
team approach. The
2. Meet with process owner(s) / manager(s). Create a
logistics of Level 1 Map and obtain approval to call a process
Determine
performing the approach to mapping meeting with process members (See team
map the workshop instructions for details on running the
mapping a process meeting).
somewhat different, 3. Bring key members of the process into the process
Complete
but it overall it takes Level 1 flow workshop. If the process is large in scope, hold
less time, the quality PFM individual workshops for each subsection of the
worksheet total process. Start with the beginning steps.
of the output is Organize meeting to use the “post-it note approach
higher and you will Create to gather individual tasks and activities, based on
Level 1 the macro map, that comprise the process.
have more “buy-in” PFM 4. Immediately assemble the information that has
into the results. Input been provided into a Process Map.
should come from Define the 5. Verify the PFM by discussing it with process owners
scope for and by observing the actual process from beginning
individuals familiar the Level 2
PFM to end.
with
ith allll stages
t off
process.

Where appropriate the team should include line individuals, supervisors, design engineers, process
engineers, process technicians, maintenance, etc. The team process mapping workshop is where it
all comes together.

Select the The Team Process Mapping Workshop


process 1. Add to and agree on Macro Process Map.
2. Using 8.5 X 11 paper for each macro process step,
Determine tape the process to the wall in a linear style.
approach to 3. Process Members then list all known process tasks
map the that they do on a Post-it note, one process task per
process
note.
• Include the actual time spent to perform each
Complete
Level 1 activity, do not include any wait time or queue
PFM time.
worksheet • List any known performance data that describe
the quality of the task.
Create 4. Place the post-it notes on the wall under the
Level 1 appropriate macro step in the order of the work flow.
PFM 5. Review process with whole group, add additional
information and close meeting.
Define the 6. Immediately consolidate information into a Level 2
scope for Process Map.
the Level 2 7. You will still have to verify the map by walking the
PFM
process
process.

In summary, after adding to and agreeing to the Macro Process Map, the team process mapping
approach is performed using multiple post-it notes where each person writes one task per note and,
when finished, place them onto a wall which contains a large scale Macro Process Map.

This is a very fast way to get a lot of information including how long it takes to do a particular task.
Using the Value Stream Analysis techniques which you will study laterlater, you will use this data to
improve the process. We will now discuss the development of the various levels of Process Mapping.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


108

Process Discovery

Steps in Generating a Level 1 PFM


You may y recall that the
preferred method for
describing a process is to Select the Creating a Level 1 PFM
process
identify it with a generic 1. Identify a generic name for the process:
For instance: “Customer order process”
name, describe its purpose 2. Identify the beginning and ending steps of the process:
Determine
with an operational approach to Beginning - customer calls in. Ending – baked pizza given to
map the operations
description and show the process
3. Describe the primary purpose and objective of the process
workflow with a process (operational definition):
Complete
p
map. When
Wh developing
d l i a Level 1 Th purpose off the
The th process isi to
t obtain
bt i telephone
t l h orders
d ffor
PFM pizzas, sell additional products if possible, let the customer
Macro Process Map, always worksheet know the price and approximate delivery time, provide an
add one process step in front accurate cook order, log the time and immediately give it to the
Create pizza cooker.
of and behind the area you Level 1 4. Mentally “walk” through the major steps of the process and
believe contains your PFM write them down:
Receive the order via phone call from the customer, calculate
problem as a minimum. To the price, create a build order and provide the order to
Define the operations
aid you in your start, we have scope for
the Level 2 5. Use standard flowcharting symbols to order and to illustrate
provided yyou with a checklist
p PFM the flow of the major process steps.
steps
or worksheet. You may
acquire this data from
your own knowledge and/or with the interviews you do with the managers / process owners. Once you
have this data, and you should do this before drawing maps, you will be well positioned to
communicate with others and you will be much more confident as you proceed.

A Macro Process Map can be useful when reporting project status to management. A macro-map can
show the scope of the project
project, so management can adjust their expectations accordingly.
accordingly Remember
Remember,
only major process steps are included. For example, a step listed as “Plating” in a manufacturing
Macro Process Map, might actually consists of many steps: pre-clean, anodic cleaning, cathodic
activation, pre-plate, electro-deposition, reverse-plate, rinse and spin-dry, etc. The plating step in the
macro-map will then be detailed in the Level 2 Process Map.
Exercise – Generate a Level 1 PFM

Th purpose off thi


The this exercise
i iis tto d
develop
l aL
Levell 1 Li
Linear
Select the Process Flow Map for the key process you have selected as your
process workplace assignment.
Read the following background for the exercise: You will use
Determine your selected key process for this exercise (if more than one
approach to person in the class is part of the same process you may do it as a
map the
process small group). You may not have all the pertinent detail to correctly
put together the Process Map, that is ok, do the best you can.
Complete This will give you a starting template when you go back to do your
Level 1 workplace assignment. In this exercise you may use the Level 1
PFM
worksheet PFM worksheet on the next page as an example.

Create Task 1 – Identify a generic name for the process.


Level 1 Task 2 - Identify the beginning and ending steps of the process.
PFM Task 3 - Describe the primary purpose and objective of the
process ((operational
p p definition).
)
Define the Task 4 - Mentally “walk” through the major steps of the process
scope for and write them down.
the Level 2
PFM Task 5 - Use standard flowcharting symbols to order and to
illustrate the flow of the major process steps.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


109

Process Discovery

Exercise – Generate a Level 1 PFM (cont.)

If necessary,
necessary you may look
at the example for the Pizza 1. Identify a generic name for the process:
order entry process.

2. Identify the beginning and ending steps of the process:

3. Describe the primary purpose and objective of the process


(operational definition):

4. Mentally “walk” through the major steps of the process and write
them down:

5. Use standard flowcharting symbols to order and to illustrate the flow


off the
h major
j process steps on a separate sheet
h off paper.

Exercise – Generate a Level 1 PFM Solution

1
1. Identify a generic name for the process:
(I.E. customer order process).

• Identify the beginning and ending steps of the process:


(beginning - customer calls in, ending – pizza order given to the chef).

• Describe the primary purpose and objective of the process (operational


definition):
) ((The p
purpose
p of the p
process is to obtain telephone
p orders for
Pizzas, sell additional products if possible, let the customer know the
price and approximate delivery time, provide an accurate cook order, log
the time and immediately give it to the pizza cooker).

• Mentally “walk” through the major steps of the process and write them
down:
(Receive the order via phone call from the customer, calculate the price,
create a build order and provide the order to the chef).

• Use standard flowcharting symbols to order and to illustrate the flow of


the major process steps on a separate sheet of paper.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


110

Process Discovery

Defining the Scope of Level 2 PFM


With a completed Level 1
PFM, you can now “see” Customer Order Process Customer Order Process
where you have to go to get Select the Customer Calls for Take Make Cook Box Deliver Customer
more detailed information. process Hungry Order Order Pizza Pizza Pizza Pizza Eats

You will have the basis for


a Level 2 Process Map.
Determine Pizza

The improvements are in approach to Dough

th details.
the d t il If th
the efficiency
ffi i map the No
process Take Order Add Place in Observe Check Yes Remove
or effectiveness of the from Cashier Ingredients Oven Frequently if Done from Oven 1

process could be
significantly improved by a Complete Start New
Pizza
Level 1
broad summary analysis, PFM Scrap
the improvement would be worksheet No
done already. If you map 1 Pizza Place in
Tape
Order on
Put on
Correct Box Delivery Rack
the process at an Yes Box

Create
actionable level, you can
Level 1
identify the source of PFM The rules for determining the Level 2 Process Map scope:
inefficiencies and defects.
But you need to be careful • From your Macro Process Map, select the area which represents your
about mapping too little an problem.
Define the
area and missing your scope for • Map this area at a Level 2.
problem cause, or mapping the Level 2
PFM • Start and end at natural startingg and stopping
pp g ppoints for a pprocess, in
t large
to l an area in
i d detail,
t il other words you have the complete associated process.
thereby wasting your
valuable time.

The rules for determining the


scope of the Level 2 Process Crea te the
Map: Level 2 PFM Pizza
Dough
a)) Look at your
y Macro Process No
Map, select the area which Take Order Add Place in Observe Check Yes Remove
Perform from Cashier Ingredients Frequently from Oven 1
represents your problem. SIPO C
Oven if Done

b) Map this area at a Level 2.


Start New
c) Start and end at natural Pizza
Identify a ll
starting and stopping points for X ’s a nd Y’s Scrap
a process, in other words you No
Tape
have the complete associated Identify
1 Pizza
Correct
Place in
Box
Order on
Put on
Delivery Rack
Yes Box
process
process. customer
t
requirements

When you perform the process


Identify
mapping workshop or do the supplier
requirements
individual interviews, you will
determine how the various tasks
and activities form a complete step. Do not worry about precisely defining the steps, it is not an exact
science, common sense will prevail. If you have done a process mapping workshop, which you will
remember we highly recommended, you will actually have a lot of the data for the Level 3 Micro
Process Map. You will now perform a SIPOC and, with the other data you already have, it will
position you for about 70 percent to 80 percent of the details you will need for the Level 3 Process
Map.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


111

Process Discovery

Building a SIPOC

SIPOC diagram for customer-order process:


Create the Suppliers Inputs Process Outputs Customers Requirements
Level 2 PFM r ATT Phones r Pizza type r See Below r Price r Cook r Complete call < 3 min
r Office Depot r Size r Order confirmation r Accounting r Order to Cook < 1 minute
r TI Calculators r Quantity r Bake order r Complete bake order
r NEC Cash Register r Extra Toppings r Data on cycle time r Correct bake order
r Special orders r Order rate data r Correct address
r Drink types & quantities r Order transaction r Correct Price
Perform
r Other products r Delivery info
SIPOC r Phone number
r Address
r Name
r Time da
Time, day and date
r Volume
Identify all X’s
and Y’s

Identify Customer Order:


customer
requirements
Level 1 process flow diagram
Call for Answer Write Confirm Sets Address Order to
an Order Phone Order Order Price & Phone Cook

Identify
y
supplier
requirements

The tool name prompts the team to consider the suppliers (the 'S' in SIPOC) of your process, the
inputs (the 'I') to the process, the process (the 'P') your team is improving, the outputs (the 'O') of
the process and the customers (the 'C') that receive the process outputs.

Requirements of the customers can be appended to the end of the SIPOC for further detail and
requirements are easily added for the suppliers as well.
The SIPOC tool is particularly useful in identifying:
Who supplies inputs to the process?
What are all of the inputs to the process we are aware of? (Later in the DMAIC methodology
you will use other tools which will find still more inputs, remember Y=f(X) and if we are going to
improve Y, we are going to have to find all the X’s.
What specifications are placed on the inputs?
What are all of the outputs of the process?
Who are the true customers of the process?
What are the requirements of the customers?

You can actually begin with the Level 1 PFM that has 4 to 8 high-level steps, but a Level 2 PFM is even
of more value. Creating a SIPOC with a process mapping team, again the recommended method is a
wall exercise similar to your other process mapping workshop. Create an area that will allow the team to
place post-it
post it note additions to the 8.5
8 5 X 11 sheets with the letters S,
S I,
I P,
P O and C on them with a copy of
the Process Map below the sheet with the letter P on it.

Hold a process flow workshop with key members. (Note: If the process is large in scope, hold an
individual workshop for each subsection of the total process, starting with the beginning steps).
The preferred order of the steps is as follows:
1. Identify the outputs of this overall process.
2. Identify the customers who will receive the outputs of the process.
3. Identify
f customers’ preliminary requirements
4. Identify the inputs required for the process.
5. Identify suppliers of the required inputs that are necessary for the process to function.
6. Identify the preliminary requirements of the inputs for the process to function properly.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


112

Process Discovery

Identifying Customer Requirements


You are now ready to
identify the customer
Create the
requirements for the Level 2 PFM
Process Name
outputs you have defined. PROCESS OUTPUT
Operational
Definition
IDENTIFICATION AND ANALYSIS
Customer requirements, 1
Output Data
3 4 5 6 7
Requirements Data
8 9 10
Measurement Data
11 12
Value Data
13
General Data/Information
Customer (Name) Metric Measurement VA
called VOC, determine Perform Process Output - Name (Y) Internal External Metric LSL Target USL
System (How is it
Measured)
Frequency of
Measurement Performance Level Data
or
NVA Comments

what are and are not SIPOC

acceptable for each of the


outputs. You may find that
some of the outputs do not Identify all X’s
and Y’s
have requirements or
specifications. For a well
managed process, this is Identify
customer
not acceptable. If this is the requirements
case, you must
ask/negotiate with the
Identify
customer as to what is supplier
acceptable. requirements

There is a technique for


determining the validity of customer and supplier requirements. It is called “RUMBA” standing for:
Reasonable, Understandable, Measurable, Believable and Achievable. If a requirement cannot meet all of
these characteristics, then it is not a valid requirement , hence the word negotiation. We have included the
process for validating
p g customer requirements
q at the end of this lesson.

The Excel spreadsheet is somewhat self explanatory. You will use a similar form for identifying the
supplier requirements. Start by writing in the process name followed by the process operational
definition. The operational definition is a short paragraph which states why the process exists, what it
does and what its value proposition is. Always take sufficient time to write this such that anyone who
reads it will be able to understand the process. Then list each of the outputs, the Y’s, and write in the
customer’s name who receives this output, categorized as an internal or external customer.

Next are the requirements data. To specify and measure something, it must have a unit of measure;
called a metric. As an example, the metric for the speed of your car is miles per hour, for your weight it is
pounds, for time it is hours or minutes and so on. You may know what the LSL and USL are but you may
not have a target value. A target is the value the customer prefers all the output to be centered at;
essentially, the average of the distribution. Sometimes it is stated as “1 hour +/- 5 minutes”. One hour is
the target, the LSL is 55 minutes and the USL is 65 minutes. A target may not be specified by the
customer; if not, put in what the average would be. You will want to minimize the variation from this
value.
value

You will learn more about measurement, but for now you must know that if something is required, you
must have a way to measure it as specified in column 9. Column 10 is how often the measurement is
made and column 11 is the current value for the measurement data. Column 12 is for identifying if this is
a value or non value added activity; more on that later. And finally column 13 is for any comments you
want to make about the output.

You will
Yo ill come back to this form and rank the significance of the o
outputs
tp ts in terms of importance to identif
identify
the CTQ’s.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


113

Process Discovery

Identifying Supplier Requirements

The supplier input or


process input identification
Create the
and analysis form is nearly Level 2 PFM
identical to the output form PROCESS INPUT
Process Name
Operational
Definition
IDENTIFICATION AND ANALYSIS
just covered. Now you are 1 2
Input Data
3 4 5 6 7
Requirements Data
8 9 10
Measurement Data
11
Value Data
12
General Data/Information

the customer, you will Perform Controlled (C)


Process Input- Name (X) Noise (N)
Supplier (Name)

Internal External Metric LSL


Metric

Target USL
Measurement
System (How is it Frequency of Performance
Measured) Measurement Level Data
NV
or
NVA Comments

specify what is required of SIPOC

your suppliers for your


process to work correctly;
Identify all X’s
remember RUMBA – the and Y’s
same rules apply.

You will notice a new Identify


customer
parameter introduced in requirements
column 2. It asks if the input
is a controlled input or an
Identify
uncontrolled input (noise). supplier
requirements
The next topic will discuss
the meaning of these terms.

Later you will come back to this form and rank the importance of the inputs to the success of your
process and eventually you will have found the Critical X’s.

Controllable vs. Noise Inputs

For any process or process Screens in Place

step input, there are two Procedural Oven Clean


Ingredients prepared
Inputs
primary types of inputs:
Controllable - we can exert
influence over them
Uncontrollable - they behave Controllable Key Process
Inputs Process Outputs
as they want to within some
reasonable boundaries. Correct Ingredients
Properly Cooked
Procedural - A standardized Room Temp Pizza Size Hot Pizza >140 deg
Moisture Content
set of activities leading to Ingredient Variation
Noise Inputs Ingredient Types/Mixes
Volume
readiness of a step.
Compliance to GAAP
Every input can be either:
(Generally Accepted Controllable (C) - Inputs can be adjusted or controlled while the process is running (e.g., speed,
Accounting Principals). feed rate, temperature, and pressure)
Procedural (P) - Inputs can be adjusted or controlled while the process is running (e.g., speed,
feed rate, temperature, and pressure)
However, even with the inputs Noise (N) - Things we don’t think we can control, we are unaware of or see, too expensive or too
we define as controllable, we difficult to control (e.g., ambient temperature, humidity, individual)

never exert complete control.


We can control an input within the limits of its natural variation, but it will vary on its own based on
its distributional shape - as you have previously learned. You choose to control certain inputs
because you either know or believe they have an effect on the outcome of the process, it is
inexpensive to do, so controlling it “makes us feel better” or there once was a problem and the
solution (right or wrong) was to exert control over some input.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


114

Process Discovery

Controllable vs. Noise Inputs (cont.)


You choose to not control some inputs because you think you cannot control them them, you either know or
believe they don’t have much affect on the output, you think it is not cost justified or you just don’t
know these inputs even exist. Yes, that’s right, you don’t know they are having an affect on the output.
For example, what effect does ambient noise or temperature have on your ability to be attentive or
productive, etc?

It is important to distinguish which category an input falls into. You know through Y=f(X), that if it is a
Critical X, by definition, that you must control it. Also if you believe that an input is or needs to be
controlled then you have automatically implied there are requirements placed on it and that it must be
controlled,
measured. You must always think and ask whether an input is or should be controlled or if it is
uncontrolled.

Exercise – Supplier Requirements

The purpose of this exercise is to identify the requirements for the


Create the
suppliers to the key process you have selected as your workplace
Level 2 PFM assignment.

Read the following background for the exercise: You will use
Perform your selected key process for this exercise (if more than one
SIPOC
person in the class is part of the same process you may do it as a
small ggroup).
p) You may y not have all the p
pertinent detail to correctly
y
identify all supplier requirements, that is ok, do the best you can.
Identify all X’s This will give you a starting template when you go back to do your
and Y’s
workplace assignment. Use the process input identification and
analysis form for this exercise.
Identify
customer Task 1 – Identify a generic name for the process.
requirements
Task 2 - Write an operational description for the process
Task 3 - Complete
p the remainder of the form except
p the Value –
Identify Non value added column.
supplier Task 4 - Report out to the class when called upon,
requirements

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


115

Process Discovery

The Level 3 Process Flow Diagram

Pi
Pizza
Dough

No
Take Order Add Place in Observe Check Yes Remove
from Cashier Ingredients Oven Frequently if Done from Oven 1

Start New
Pizza

Scrap
No
Tape
Pizza Place in Put on
1 Correct Box
Order on Delivery Rack
Yes Box

Process Name Step Name/Number


PROCESS STEP Process Name Step Name/Number Process Name Step Name/Number
PROCESS STEP PROCESS STEP
OUTPUT IDENTIFICATION AND ANALYSIS PROCESS STEP Process Name Step Name/Number

OUTPUT
1 IDENTIFICATION
3 4 AND
5 ANALYSIS
6 7 8 9 10 11 12 13 INPUT IDENTIFICATION AND ANALYSIS
1 Output Data 3 4 5 Requirements
6 Data7 8 9 Measurement
10 Data 11 Value Data
12 General Data/Information
13 INPUT
1 IDENTIFICATION
2 3 AND4 ANALYSIS
5 6 7 8 9 10 11 12 13
Customer (Name) Metric 1 Input Data2 3 4 5Requirements
6 Data7 8 9 Measurement 10Data 11 Value Data
12 General Data/Information
13
Output Data Requirements Data Measurement Measurement Data Value
VA Data General Data/Information
Customer (Name) Metric System (How is it Frequency of or VA Input Data Supplier (Name) Metric
Requirements Data Measurement Measurement Data VA
Value Data General Data/Information
Measurement Controlled (C) System (How is it Frequency of Performance or VA
Process Output - Name (Y) Internal External Metric LSL Target USL Measured) Supplier (Name) Metric Measurement
System (How is itMeasurement
Frequency of Performance Level Data NVA or Comments
Process Input- Name (X) Noise Internal
(N) (C) External Metric LSL Target USL Measured)
Controlled it Frequency ofLevel
System (How isMeasurement Data
Performance NVA or Comments
Process Output - Name (Y) Internal External Metric LSL Target USL Measured) Measurement Performance Level Data NVA Comments
Process Input- Name (X) Noise (N) Internal External Metric LSL Target USL Measured) Measurement Level Data NVA Comments

You h
Y have a d
decision
i i att thi
this point
i t tto continue
ti with
ith a complete
l t characterization
h t i ti off th
the process you h
have
documented at a Level 2 in order to fully build the process management system or to narrow the effort
by focusing on those steps that are contributing to the problem you want solved.

Usually just a few of the process steps are the root cause areas for any given higher level process
output problem. If your desire is the latter, there are some other Measure Phase actions and tools you
will have to use to narrow the number of potential X’s and subsequently the number of process steps.

To narrow the
T th scope so it is
i relevant
l t to
t your problem
bl consider
id ththe ffollowing:
ll i R
Remember
b using
i ththe pizza
i
restaurant as our example for selecting a key process? They were having a problem with overall delivery
time and burnt pizzas. Which steps in this process would contribute to burnt pizzas and how might a
pizza which was burnt so badly it had to be scrapped and restarted effect delivery time? It would most
likely be the steps between “place in oven” to “remove from oven”, but it might also include “add
ingredients” because certain ingredients may burn more quickly than others. This is how, based on the
Problem Statement you have made, you would narrow the scope for doing a Level 3 PFM.

For your project, the priority will be to do your best to find the problematic steps associated with your
Problem Statement. We will teach you some new tools in a later lesson to aid you in doing this. You may
have to characterize a number of steps until you get more experience at narrowing the steps that cause
problems; this is to be expected. If you have the time you should characterize the whole process.

Each step you select as the causal steps in the process must be fully characterized, just as you have
previously done for the whole process. In essence you will do a “mini SIPOC” on each step of the
process as defined in the Level 2 Process Map.Map This can be done using a Level 3 Micro Process Map
and placing all the information on it or it can be consolidated onto an Excel spreadsheet format or a
combination of both. If all the data and information is put onto an actual Process Map, expect the map to
be rather large physically. Depending on the scope of the process, some people dedicate a wall space
for doing this; say a 12 to 14 foot long wall. An effective approach for this is to use a roll of industrial

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


116

Process Discovery

The Level 3 Process Flow Diagram (Cont.)


grade brown package wrapping paper, which is generally 4 feet wide. Just roll out the length you want,
cut it, place this on the wall and then build your Level 3 Process Map by taping and writing various
elements onto the paper. The value of this approach is that you can take it off the wall, roll it up, take it
with you and then put it back on any wall; great for team efforts.

A Level 3 Process Map contains all of the process details needed to meet your objective: all of the flows,
set points, standard operating procedures (SOPs), inputs and outputs; their specifications and if they are
classified as being controllable or non-controllable (noise). The Level 3 PFM usually contains estimates of
defects per unit (DPU), yield and rolled throughput yield (RTY) and value/non-value
value/non value add. If processing
cycle times and inventory levels (materials or work queues) are important, value stream parameters are
also included.

This can be a lot of detail to manage and appropriate tracking sheets are required. We have supplied
these sheets in a paper and Excel spreadsheet format for your use. The good news is the approach and
forms for the steps are essentially the same as the format for identifying supplier and customer
requirements at the process level. A spreadsheet is very convenient tool and the output from the
spreadsheet can then be fed directly into a C&E matrix and an FMEA (to be described later),
later) also built
using spreadsheets.

You will find the work you have done up to this point in terms of a Level 1 and 2 Process Maps and the
SIPOC will be of use, both from knowledge of the process and actual data.

An important reminder of a previous lesson: You will recall when you were taught about project definition
where it was stated that you should only try to solve the performance of only one process output, at any
one time
time. Because of the amount of detail you can get into for just one Y
Y, trying to optimize more than one
Y at a time can become overwhelming. The good news is that you will have laid all the ground work to
focus on a second and a third Y for a process by just focusing on one Y in your initial project.
Process Inputs (X’s) and Outputs (Y’s)
You are now down at the PROCESS STEP
Process Name Step Name/Number

OUTPUT IDENTIFICATION AND ANALYSIS


step level of the process, 1
Output Data
3 4 5 6 7
Requirements Data
8 9 10
Measurement Data
11 12
Value Data
13
General Data/Information

this is what we call the Create a Customer (Name) Metric Measurement


System (How is it Frequency of
VA
or
Level 3 PFM Process Output - Name (Y) Internal External Metric LSL Target USL Measured) Measurement Performance Level Data NVA Comments

improvement view of a
process. Now you do
exactly the same thing
Add
as you did for the overall Performance
process, you list all of data

the input and output


information for steps of
th process you have
the h Identify
f
VA/NVA steps PROCESS STEP
Process Name Step Name/Number
selected for analysis and INPUT IDENTIFICATION AND ANALYSIS
characterization to solve 1 2
Input Data
3 4 5 6 7
Requirements Data
8 9 10
Measurement Data
11 12
Value Data
13
General Data/Information
Supplier (Name) Metric Measurement VA

your problem. To help Process Input- Name (X)


Controlled (C)
Noise (N) Internal External Metric LSL Target USL
System (How is it Frequency of Performance
Measured) Measurement Level Data
or
NVA Comments

you comprehend what


we are trying to
accomplish we have
provided you with
visualization for the
inputs and outputs of the
Pizza restaurant.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


117

Process Discovery

Process Inputs (X’s) and Outputs (Y’s) (cont.)

Any process, even a pizza


restaurant process can be C /N Requirements or Specs. Inputs (Xs) Process

characterized. This Ys
visualization shows many N/C 7”, 12”, 16”
N/C 12 meats, 2 veggies, 3 cheese
Size of Pizza
Toppings
of the inputs and outputs N N/A Name
N Within 10 miles Address Order •All fields
and their requirements. By N Within area code Phone
Take Order
complete
N 11 AM to 1 AM Time
using the process and the N 5 X 52 Day
process step input and N MM/DD,YY Date

output
t t sheets,
h t you gett a
very detail picture about C All fields complete
C Per Spec Sheets
Order
Ingredients •Size
Make Pizza Raw •Weight
how your process works. S.O.P Per Rev 7.0 Recipe Pizza
•Ingredients
C As per recipe chart 3-1 in Oz. Amounts
Now you have enough data correct

to start making informed


C All fields complete Order
decisions about the C Ingredients per order Raw Pizza
C 350F +/- 5F Oven Temp Cook Pizza •>140F
process performance. The C 10 Min Time Cooked
Pizza •Ingredients
next lesson pages will N 60 per hour max Volume correct
•No burns
describe how you
determine if a process task, activity or step is a value added step or not.

Identifying Waste
When we produce
A Writes Add to Rewrite
products or services, we NV
time on Order order
scratch
pad
p

engage process-based A No
Greetings Request
NV NoWrites on
Call for an Answer and Asks for Confirm
activities to transform Order phone mention
specials
order from
customer
scratch
pad more? order

Yes
physical materials, ideas 1 2
and information into NV
A No
No
Asks cook Inform Gets Thanks
something valued by 2 Calculate
price for time
estimate
customer
of
price/time
Yes
Order
still OK?
address &
phone #
3 customer
& hangs
up
Another
call
waiting

customers. Some A
NV
Yes
Writes
time on
Create a Yes
activities in the process Level 3 •Each process activity can be tested for 1
scratch
pad New
order?
its value-add contribution
generate true value
value, PFM N
No
A
others do not. The •Ask the following two questions to NV Completes
order from
3
Add identify non-value added activity: from note
pad
expenditure of resources, Performance –Is the form, fit or function of the A
data work item changed as a result of OK NV
capital and other this activity?
Give order to
Cook
Verify
with
notes
Not
energies that do not Identify
–Is the customer willing to pay for OK
this activity? A
generate value is VA/NVA NV
Rewrite
Order
steps
considered waste. Value
generation is any activity
that changes the form, fit or function of what we are working on in a way that the customer is willing to
pay for. The goal of testing for VA vs. NVA is to remove unnecessary activity (waste) from a process.

Hint: If an action starts with the two letters “re” it’s a good chance that it’s a form of waste, i.e. rework,
replace, review, etc.

Some non-value activities cannot be removed; i.e., data collection is required to understand and plan
production activity
p y levels,, data must be collected to comply
p y with g
governmental regulations,
g , etc. ((even
though the data have no effect on the actual product or service)

On the process flow diagram we place a red X through the steps or we write NVA or VA by each step.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


118

Process Discovery

Definition of X-Y Diagram

The X-Y Diagram is a great tool to • The X-Y diagram


g is:
help us focus, again it is based on – A tool used to identify/collate potential X’s and assess their
team experience and “Tribal” relative impact on multiple Y’s (include all Y’s that are
knowledge. At this point in the customer focused)
project that is great although it – Based on the team’s collective “opinions”
should be recognized that this is
– Created for every project
NOT hard data. As you progress
through the methodology don’t be – Never completed
surprised if you find out through – Updated
U d t d whenever
h a parameter t iis changed
h d
data analysis that what the team
thought might be critical turns out • To summarize, the X-Y is a team-based prioritization tool for the
to be insignificant. potential X’s
The great thing about the X-Y
Diagram is that it is sort of an • WARNING! This is not real data, this is organized
unbiased way to approach brainstorming!!
g At the conclusion of the pproject
j yyou mayy realize
definition around the process and that the things you thought were critical are in fact not as
WILL give you focus. important as was believed.

The Vital Few

A Six Sigma Belt does not just discover which X’s are important in
a process (the vital few).
– The team considers all possible X’s that can contribute or
cause the problem observed.
– The team uses 3 primary sources of X identification:
• Process
ocess Mapping
app g
• Fishbone Analysis
• Basic Data Analysis – Graphical and Statistical
– A List of X’s is established and compiled.
– The team then prioritizes which X’s it will explore first, and
eliminates the “obvious” low impact X’s from further
consideration.

The X-Y Diagram is this Prioritization Tool!

This is an important tool for the many reasons we have already stated. Use it to your benefit,
leverage the team and this will help you progress you through the methodology to accomplish your
ultimate project goal.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


119

Process Discovery

The “XY Diagram”

This is the X-Y Diagram. You should have a copy of this template. If possible open it and get
familiar with it as we progress through this section.

Using the Classified X


X’s
s

• Breakthrough requires dealing primarily with controllable X’s


impacting the “Y”.
• Use the controllable X’s from the Fishbone analysis to include in the
g
X-Y Diagram.
• The goal is to isolate the vital few X’s from the trivial many X’s.
• Procedures and Noise X’s will be used in the FMEA at the end of
this module. However:
– All procedures must be in total compliance.
• This mayy require
q some type
yp of effectiveness measure.
• This could reduce or eliminate some of the defects currently seen in
the process (allowing focus on controllable X’s).
– Noise type inputs increase risk of defects under current
technology of operation and therefore:
• Increase RPN on the FMEA document from an input.
• Help identify areas needing investment for a justified ROI.
*Risk Priority Number

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


120

Process Discovery

X-Y Diagram: Steps

Li t X’s
List X’ from
f Fishbone
Fi hb Diagram
Di in
i horizontal
h i t l rows

Use your Fishbone Diagram as the source and type in the Inputs in this section, use common sense,
some of the info from the Fishbone may not justify going into the X-Y inputs.

Enter your primary metric


and any other secondary
List Y’s in columns (including Primary and Secondary metrics).
metrics across into this Weight the Y’s on a scale of 1-10 (10 - highest and 1- lowest).
area. Weight these output
variables (Y’s) on a scale
of 1-10 you may find that
some have the same
weight which is just fine.
If, at this time, additional
metrics come to the
surface, which is totally
common, you may realize
that you need to add
secondary metrics to your
project or even refine your
primary metric.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


121

Process Discovery

X-Y Diagram: Steps (cont.)


For each X listed along the left
left, F eachh X listed,
For li t d rankk its
it effect
ff t on eachh metric
t i based
b d on a scale
l off 1,
1 3 or 99.
rank its effect on each
– 9 = Highest
corresponding metric based on
– 3 = Marginal
a scale of 0, 1, 3 or 9. You can
use any scale you choose – 1 = None
however we recommend this
on. If you use a scale of 1 to 10
this can cause uncertainty
within
i hi the
h team…is i iit a 6 or a 7,
what’s the difference, etc.?

The template we have provided


automatically calculates and “Ranking” multiplies the rank of each X by the Weight of each Metric.
The product of that is added together to become the “Ranking”.
sorts the ranking shown here.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


122

Process Discovery

Example

Click the Demo button to see an example. Shown here is a basic


example of a completed X-Y
Diagram. You can click
“Demo” on your template to
view this anytime.

Example
This is the summary
worksheet. If you click Click the Summary Worksheet
on the “Summary” tab
you will see this output.
Take some time to YX Diagram Summary
review the worksheet. Process: laminatingg
Date: 5/2/2006 Input Matrix Results

100.00%
Output Variables Input Variables 90.00%
80.00%
Description Weight Description Ranking Rank %
Output (Y's)

70.00%
60.00%
broken 10 temperature 162 14.90% 50.00%
40.00%
unbonded area 9 human handling 159 14.63% 30.00%
20.00%
smears 8 material properties 130 11.96% 10.00%
0.00%
thickness 7 washer 126 11.59%
temperature

time
clean room cleanliness
material properties
pressure

foreign material 6 pressure 120 11.04%


0 robot handling 120 11.04%
0 time 102 9.38%
0 clean room practices 90 8 28%
8.28% Input Summary
0 clean room cleanliness 78 7.18% Input (X's)
0 - 0.00%

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


123

Process Discovery

Fishbone Diagram Exercise

Ex ercise objective: Create an X-Y diagram


using the information from the Fishbone
analysis.

1. Using the Fishbone Diagram created earlier, create


an X
X-Y
Y diagram.
diagram

2. Present results to your mentor.

Definition of FMEA
Failure Modes Effect
Analysis or FMEA Failure Modes Effect Analysis (FMEA) is a structured approach to:
[*usually pronounced • Predict failures and pprevent their occurrence in manufacturingg
as F-M-E-A (individual
and other functional areas which generate defects.
letters) or FEMA** (as
a word)] is a structured • Identify the ways in which a process can fail to meet critical
approach to: read customer requirements (Y).
bullets. FMEA at this
point is developed with • Estimate the Severity, Occurrence and Detection (SOD) of
tribal knowledge with a defects
cross-functional
cross functional team.
team • Evaluate the current control plan for preventing these failures
Later using process from occurring and escaping to the customer.
data the FMEA can be
updated and better • Prioritize the actions that should be taken to improve and control
estimates of detection the process using a Risk Priority Number (RPN).
and occurrence can be
obtained. The FMEA is
not a tool to eliminate
X’s but rather control
Give
G ve mee an
a “F”,
F , give
g ve mee an
a “M”……
M
the X’s. It is only a tool
to identify potential X’s
and prioritize the order
in which the X’s should
be evaluated.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


124

Process Discovery

History of FMEA

History of FM EA:
• First used in the 1960’s in the Aerospace industry during the
Apollo missions
• In 1974 the N avy developed MIL-STD-1629 regarding the use of
FMEA
• In the late 1970’s
1970 s, automotive applications driven by liability
costs, began to incorporate FMEA into the management of their
processes
• Automotive Industry Action Group (AIAG) now maintains the
FMEA standard for both Design and Process FMEA’s

The “edge of your seat” info on the history of the FMEA! I’m sure you will all be sharing this with
everyone tonight at the dinner table!

Types of FMEA’s

There are many diff


Th differentt • System FMEA: Performed on a product or service product at the early
types of FMEA’s. The concept/design level when various modules all tie together. All the module level
basic premise is the FMEA’s tie together to form a system. As you go lower into a system more failure
modes are considered.
same.
– Example: Electrical system of a car, consists of the following modules:
battery, wiring harness, lighting control module, and alternator/regulator.
– System FMEA focuses on potential failure modes associated with the
modules of a system caused by design

• Design DFMEA: Performed early in the design phase to analyze product fail
modes before they are released to production. The purpose is to analyze how
fail modes affect the system and minimize them. The severity rating of a fail
mode MUST be carried into the Process PFMEA.

• Process PFMEA: Performed in the early quality planning phase of


manufacturing to analyze fail modes in manufacturing and transactional
processes that may escape to the customer. The failure modes and the potential
sources of defects are rated and corrective action taken based on a pareto
analysis ranking.

• Equipment FMEA: used to analyze failure modes in the equipment used in a


process to detect or make the part.
– Example: Test Equipment fail modes to detect open and short circuits.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


125

Process Discovery

Purpose of FMEA

FMEA’s:

• Improve the quality, reliability, and safety of products.

• Increase customer satisfaction.


satisfaction

• Reduce product development time and cost.

• Document and track actions taken to reduce risk and


improve the process.
process

• Focus on continuous problem prevention not problem


solving.

Who Creates FMEAs and When?

FMEA’s are a team tool like


most in this phase of the Who When
methodology. They are • Process FMEAs should be started:
• The focused team working
applicable
pp is most everyy
on a breakthrough project
project. • At the conceptual design phase
phase.
project, manufacturing or
• Process FMEAs should be updated:
service based. • ANYONE who had or has a
• When an existing design or process
role in defining, executing,
For all intensive purposes is being changed.
or changing the process.
they will be used in • When carry-over designs or
conjunction with your • This includes: processes will be used in new
problem solving project to applications and environments.
• Associates
characterize and measure • When a pproblem solvingg studyy is
• Technical Experts completed and needs to be
process variables. In some
• Supervisors documented.
cases the FMEA will
manifest itself as a • System FMEAs should be created after
• Managers system functions are defined but before
management tool when the
• Etc. specific hardware is selected.
project concludes and in
• Design FMEAs should be created when
some cases it will not be
new systems, products and processes are
appropriate to be used in being designed.
that nature.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


126

Process Discovery

Why Create an FMEA?

A a means to
As t manage… FMEA s help you manage
FMEA’s
RISK by classifying your
process inputs and monitoring

RISK!!! their effects. This is extremely


important during the course of
your project work.

We want to avoid causing failures in the Process as well as the


Primary & Secondary Metrics .

The FMEA…

This is an FMEA
FMEA. We have provided a template for you to use.
use

# Process Potential Potential S C Potential O Current D R Recommen Responsibl Taken S O D R


Functio Failure Failure E l Causes of C Process E P d Actions e Person & Action E C E P
n Modes Effects V a Failure C Controls T N Target s V C T N
((Step)
p) (process (Y's) s (X's) Date
defects) s
1
2
3
4
5
6
7
8
9

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


127

Process Discovery

FMEA Components…#

The first column


# Process Potential Potential S C Potential O Current D R Recommen Responsibl Taken S O D R
Function Failure Failure E l Causes of C Process E P d Actions e Person & Action E C E P highlighted here is the
(Step) Modes Effects V a Failure C Controls T N Target s V C T N “Process Step
(process (Y's) s (X's) Date
defects) s Number”.

The first column is the Process Step Number.


1
2
3
4
5
Etc.

FMEA Components…Process Step

The second
Th d column
l iis
the Name of the Process # Process
Function
Potential
Failure
Potential
Failure
S
E
C
l
Potential
Causes of
O
C
Current
Process
D R
E P
Recommen
d Actions
Responsibl
e Person &
Taken
Action
S O D R
E C E P
Step. The FMEA should (Step) Modes
(process
Effects
(Y's)
V a
s
Failure
(X's)
C Controls T N Target
Date
s V C T N

sequentially follow the defects) s

steps documented in
your Process Map.

ƒ Phone Enter the Name of the Process Step here. The FMEA should
ƒ Dial Number sequentially
ti ll ffollow
ll ththe steps
t d
documented
t d iin your Process
P Map.
M
ƒ Listen for Ring Phone
ƒ Say Hello Dial Number
ƒ Introduce Yourself Listen for Ring
ƒ Etc. Say Hello
Introduce Yourself
Etc.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


128

Process Discovery

FMEA Components…Potential Failure Modes

The third column to the mode


# Process Potential Potential S C Potential O Current D R Recommen Responsibl Taken S O D R
Functio Failure Failure E l Causes of C Process E P d Actions e Person & Action E C E P in which the process could
n Modes Effects V a Failure C Controls T N Target s V C T N
(Step) (process (Y's) s (X's) Date potentially fail. These are the
defects) s
defects caused by a C, P or N
factor that could occur in the
Process.
This refers to the mode in which the process could potentially fail.
These are the defects caused by a C,P or N factor that could occur
in the Process.
Process
This information is obtained from Historical Defect Data.

FYI..A failure mode is a fancy name for a defect.

FMEA Components…Potential Failure Effects

The fourth column


highlighted here is # Process Potential Potential S C Potential O Current D R Recommen Responsibl Taken S O D R
simply the effect of Functio Failure Failure E l Causes of C Process E P d Actions e Person & Action E C E P
n Modes Effects V a Failure C Controls T N Target s V C T N
realizing the potential (process (Y's) s (X's) Date
(Step)
failure mode on the defects) s
overall process and is
focused on the output
of each step.

This information is
usually obtained from This is simply the effect of realizing the potential failure
your Process Map.
mode on the overall process. It focuses on the outputs
of each step.
This information can be obtained in the Process Map.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


129

Process Discovery

FMEA Components…Severity (SEV

# Process Potential Potential S C Potential O Current D R Recommen Responsibl Taken S O D R


Functio Failure Failure E l Causes of C Process E P d Actions e Person & Action E C E P
n Modes Effects V a Failure C Controls T N Target s V C T N
(Step) (process (Y's) s (X's) Date
defects) s

This ranking should be developed based on the teams knowledge of


the process in conjunction with the predetermined scale.
The measure of Severity is a financial measure of the impact to the
business of realizing a failure in the output.

The fifth column highlighted here is the ranking that is developed based on the team’s knowledge of the
process in conjunction with the predetermined scale.

Severity is a financial measure of the impact to the business of a failure in the output.

Ranking Severity

The Automotive Industry Action Group, a consortium of the “Big Three”: Ford, GM and Chrysler
developed this criteria. If you don’t like it develop one that fits your organization; just make sure it’s
standardized so everyone uses the same scale.

Effect Criteria: Severity of Effect Defined Ranking


Hazardous: May endanger the operator. Failure mode affects safe vehicle operation and/or 10
Without involves non
non-compliance
compliance with government regulation
regulation. Failure will occur WITHOUT
Warning warning.
Hazardous: May endanger the operator. Failure mode affects safe vehicle operation and/or 9
With Warning involves non-compliance with government regulation. Failure will occur WITH
warning.
Very High Major disruption to the production line. 100% of the product may have to be scrapped. 8
Vehicle/item inoperable, loss of primary function. Customers will be very dissatisfied.

High Minor disruption to the production line. The product may have to be sorted and a portion 7
(less than 100%) scrapped. Vehicle operable, but at a reduced level of
performance. Customers will be dissatisfied.
Moderate Minor disruption to the production line. A portion (less than 100%) may have to be 6
scrapped (no sorting)
sorting). Vehicle/item operable
operable, but some comfort/convenience
item(s) inoperable. Customers will experience discomfort.
Low Minor disruption to the production line. 100% of product may have to be re-worked. 5
Vehicle/item operable, but some comfort/convenience item(s) operable at a
reduced level of performance. Customers will experience some dissatisfaction.
Very Low Minor disruption to the production line. The product may have to be sorted and a 4
portion (less than 100%) re-worked. Fit/finish/squeak/rattle item does not
conform. Most customers will notice the defect.
Minor Minor disruption to the production line. A portion (less than 100%) of the product may 3
have to be re-worked online but out-of-station. Fit/finish/squeak/rattle item
does not conform. Average customers will notice the defect.
Very Minor Minor disruption to the production line. A portion (less than 100%) of the product may 2
have to be re-worked online but in-station. Fit/finish/squeak/rattle
q item does
not conform. Discriminating customers will notice the defect.
None No effect. 1

* Potential Failure Mode and Effects Analysis (FMEA), Reference Manual, 2002. Pgs 29-45. Chrysler
Corporation, Ford Motor Company, General Motors Corporation.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


130

Process Discovery

Applying Severity Ratings to Your Process

• The guidelines presented on the previous slide were developed for


the auto industry.
• This was included only as a guideline....”actual results may vary” for
your project.
• Your severity may be linked to impact on the business or impact on
the next customer, etc.

You will
Y ill need
d to
t define
d fi your own criteria…
it i …
criteria
and be consistent throughout your FMEA

Let’s brainstorm how we might define the following SEVERITY


levels in our own projects:
1, 5, 10

The actual definitions of the severity are not so important as the fact that the team remains
consistent in its use of the definitions. Below is a sample of transactional severities.

Sample Transactional Severities

Effect Criteria: Impact of Effect Defined Ranking

Critical Business May endanger company’s ability to do business. Failure mode affects process
10
Unit-wide operation and / or involves noncompliance with government regulation.
Critical Loss - May endanger relationship with customer. Failure mode affects product delivered
Customer and/or customer relationship due to process failure and/or noncompliance with 9
Specific government regulation.
Major disruption to process/production down situation. Results in near 100%
High 7
rework or an inability to process. Customer very dissatisfied.
Moderate disruption to process. Results in some rework or an inability to process.
Moderate Process is operable, but some work arounds are required. Customers experience 5
dissatisfaction.
Minor disruption to process. Process can be completed with workarounds or
Low rework at the back end. Results in reduced level of performance. Defect is 3
noticed and commented upon by customers.
Minor disruption to process. Process can be completed with workarounds or
Minor rework at the back end. Results in reduced level of performance. Defect noticed 2
internally, but not externally.
None No effect. 1

Shown here is an example for severity guidelines developed for a financial services company.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


131

Process Discovery

FMEA Components…Classification “Class”

# Process Potential Potential S C Potential O Current D R Recommen Responsibl Taken S O D R


Functio Failure Failure E l Causes of C Process E P d Actions e Person & Action E C E P
n Modes Effects V a Failure C Controls T N Target s V C T N
(Step) (process (Y's) s (X's) Date
defects) s

Class should categorize each step as a…


ƒ Controllable (C)
ƒ Procedural (P)
ƒ Noise (N)
This information can be obtained in the Process Map.

Controllable – A factor that can be dialed into a specific setting/value. For example Temperature or
Flow.
Procedures – A standardized set of activities leading to readiness of a step. For example Safety
Compliance, “Lock -Out Tag-Out.”
Noise - A factor that can not be dialed in to a specific setting/value
setting/value. For example rain in a mine
mine.

Recall the classifications of Procedural, Controllable and Noise developed when constructing your
Process Map and Fishbone Diagram? Use those classifications from the Fishbone in the “Class”
column, highlighted here, in the FMEA.

P t ti l C
Potential Causes off F
Failure
il (X’s)
(X’ )

# Process Potential Potential S C Potential O Current D R Recommen Responsibl Taken S O D R


Functio Failure Failure E l Causes of C Process E P d Actions e Person & Action E C E P
n Modes Effects V a Failure C Controls T N Target s V C T N
(Step) (process (Y's) s (X's) Date
defects) s

Potential Causes of the Failure refers to how the failure could occur.
This information should be obtained from the Fishbone Diagram.
The column “Potential Causes of the Failure”, highlighted here, refers to how the failure could
occur.

This should also be obtained from the Fishbone Diagram.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


132

Process Discovery

FMEA Components…Occurrence “OCC”

The column “Occurrence”


Occurrence
# Process Potential Potential S C Potential O Current D R Recommen Responsibl Taken S O D R highlighted here, refers to
Function Failure Failure E l Causes of C Process E P d Actions e Person & Action E C E P
(Step) Modes Effects V a Failure C Controls T N Target s V C T N how frequently the specified
(process (Y's) s (X's) Date failure is projected to occur.
defects) s
This information should be
obtained from Capability
Studies or Historical Defect
Data in conjunction with the
Occurrence refers to how frequently the specified failure is projected predetermined scale.

to occur.
This information should be obtained from Capability Studies or
Historical Defect Data - in conjunction with the predetermined scale.

Ranking Occurrence

Probability of Failure Possible Failure Rates Cpk Ranking

Very High: Failure is almost ≥ 1 in 2 < 0.33 10


inevitable.
1 in 3 ³ 0.33 9
High: Generally associated with
1 in 8 ³ 0.51 8
processes similar to previous
processes that have often failed.
1 in 20 ³ 0.67 7

Moderate: Generally associated 1 in 80 ³ 0.83 6


with processes similar to previous
processes that have experienced 1 in 400 ³ 1.00 5
occasional failures but not in major
proportions. 1 in 2,000 ³ 1.17 4

Low: Isolated failures associated


1 in 15,000 ³ 1.33 3
with similar processes.
Very Low: Only isolated failures
associated with almost identical 1 in 150,000 ³ 1.5 2
processes.
Remote: Failure is unlikely
unlikely. No
failures ever associated with almost ≤ 1 in 1,500,000 ³ 1.67 1
identical processes.

Potential Failure Mode and Effects Analysis (FMEA), Reference Manual, 2002. Pg. 35.. Chrysler Corporation, Ford
Motor Company, General Motors Corporation.

The Automotive Industry Action Group, a consortium of the “Big Three”: Ford, GM and Chrysler
developed these Occurrence rankings.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


133

Process Discovery

FMEA Components…Current Process Controls

# Process Potential Potential S C Potential O Current D R Recommen Responsibl Taken S O D R


Function Failure Failure E l Causes of C Process E P d Actions e Person & Action E C E P
(Step) Modes Effects V a Failure C Controls T N Target s V C T N
(process (Y's) s (X's) Date
defects) s

Current Process Controls refers to the three types of controls that are
in place to prevent a failure in with the X’s. The 3 types of controls are:
•SPC (Statistical Process Control)
•Poke-Yoke – (Mistake Proofing)
•Detection after Failure

Ask yourself “how do we control this defect?”

The column “Current Process Controls” highlighted here refers to the three types of controls that are
in place to prevent a failures.

FMEA Components…Detection
Components Detection (DET)

# Process Potential Potential S C Potential O Current D R Recommen Responsibl Taken S O D R


Functio Failure Failure E l Causes of C Process E P d Actions e Person & Action E C E P
n Modes Effects V a Failure C Controls T N Target s V C T N
(Step) (process (Y's) s (X's) Date
defects) s

Detection is an assessment of the probability that the proposed type


of control will detect a subsequent failure mode.

This information should be obtained from your Measurement System


Analysis Studies and the Process Map. A rating should be assign in
conjunction with the predetermined scale.

The “Detection” highlighted here is an assessment of the probability that the proposed type of
control will detect a subsequent failure mode.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


134

Process Discovery

Ranking Detection

Criteria: The likelihood that the existence of a defect will


Detection be detected by the test content before the product Ranking
advances to the next or subsequent process
Almost Impossible Test content must detect < 80% of failures 10

Very Remote Test content must detect 80% of failures 9

Remote Test content must detect 82.5% of failures 8

Very Low Test content must detect 85% of failures 7

Low Test content must detect 87.5% of failures 6

Moderate Test content must detect 90% of failures 5

Moderately High Test content must detect 92.5% of failures 4

High Test content must detect 95% of failures 3

Very High Test content must detect 97.5% of failures 2

Almost Certain Test content must detect 99.5% of failures 1

Potential Failure Mode and Effects Analysis (FMEA), AIAG Reference Manual, 2002 Pg. 35.. Chrysler Corporation,
Ford Motor Company, General Motors Corporation.

The Automotive Industry Action Group, a consortium of the “Big Three”: Ford, GM and Chrysler
developed these Detection criteria.

Risk Priority Number “RPN”

The “The Risk Priority


Number” highlighted here is # Process
Functio
Potential
Failure
Potential
Failure
S C
E l
Potential
Causes of
O Current
C Process
D R
E P
Recomme
nd Actions
Responsibl
e Person &
Taken
Action
S O D R
E C E P
a value that will be used to n Modes Effects V a Failure C Controls T N Target s V C T N
(Step) (process (Y's) s (X's) Date
rank order the concerns defects) s
from the process.

We provided you with a


template which will The Risk Priority Number is a value that will be used to rank order
automatically calculate this the concerns from the process.
for you based on your
inputs for Severity,
Occurrence and Detection
Detection. The RPN is the product of,
of Severity,
Severity Occurrence and Detect ability
as represented here…

RPN = (SEV)*(OCC)*(DET)

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


135

Process Discovery

FEMA Components…Actions

# Process Potential Potential S C Potential O Current D R Recommen Responsibl Taken S O D R


Function Failure Failure E l Causes of C Process E P d Actions e Person & Action E C E P
(Step) Modes Effects V a Failure C Controls T N Target s V C T N
(process (Y's) s (X's) Date
defects) s

Recommended Actions refers to the activity for the prevention of a


defect.

Responsible Person & Date refers to the name of the group or person
responsible for completing the activity and when they will complete it.

Taken Action refers to the action and effective date after it has been
completed.

The columns highlighted here are a type of post FMEA. Remember to update the FMEA throughout
your project, this is what we call a “Living Document” as it changes throughout your project.

FMEA Components…Adjust RPN

# Process Potential Potential S C Potential O Current D R Recommen Responsibl Taken S O D R


Function Failure Failure E l Causes of C Process E P d Actions e Person & Action E C E P
(Step) Modes Effects V a Failure C Controls T N Target s V C T N
(process (Y's) s (X's) Date
defects) s

Once the Recommended Actions, Responsible Person & Date,


T k Action
Taken A ti have
h beenb completedl t d th
the SSeverity,
it OOccurrence andd
Detection should be adjusted. This will result in a new RPN rating.
The columns highlighted here are the adjusted levels based on the actions you have taken within the
process.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


136

Process Discovery

FMEA Exercise

Exercise objective: Assemble your team in order


to create a FMEA using the information
generated from the Process Map, Fishbone
Diagram and X-Y Diagram.

1. Be prepared to present results to your mentor.

OK Team,
Team let’s
get that FMEA!

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


137

Process Discovery

At this point, you should be able to:

ƒ Create a high-level Process Map

ƒ Create a Fishbone Diagram

ƒ Create an X-Y Diagram

ƒ Create an FMEA

ƒ Describe the purpose of each tool and when it should be used

You have now completed Measure Phase – Process Discovery.

Notes

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


138

Lean Six Sigma


Black Belt Training

Measure Phase
Six Sigma Statistics

Now we will continue in the Measure Phase with “Six Sigma Statistics”.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


139

Six Sigma Statistics

Overview
In this module you will learn how your
processes speak to you in the form of W
Welcome
l
Welcome to
tto Measure
M
Measure
data. If you are to understand the Process
Process Discovery
Discovery
behaviors of your processes, then you
Six
Six Sigma
Sigma Statistics
Statistics
must learn to communicate with the
process in the language of data. Basic
Basic Statistics
Statistics

Descriptive
Descriptive Statistics
Statistics
The field of statistics provides the tools
and techniques
q to act on data,, to turn Normal
Normal Distribution
Distribution
data into information and knowledge Assessing
Assessing Normality
Normality
which you will then use to make Special
Special Cause
Cause // Common
Common Cause
Cause
decisions and to manage your
processes. Graphing
Graphing Techniques
Techniques

Measurement
Measurement System
System Analysis
Analysis
The statistical tools and methods that
you will need to understand and Process
Process Capability
Capability
optimize your processes are not
Wrap
Wrap Up
Up &
& Action
Action Items
Items
difficult. Use of Excel spreadsheets or
specific statistical analytical software
has made this a relatively easy task.

In this module you will learn basic, yet powerful analytical approaches and tools to increase your
ability to solve problems and manage process behavior.

Purpose of Basic Statistics

The purpose of Basic Statistics is to:


• Provide a numerical summary of the data being analyzed.
– Data (n)
• Factual information organized for analysis.
• Numerical or other information represented in a form suitable for processing by
computer
• Values from scientific experiments.
• Provide the basis for making inferences about the future.
• Provide the foundation for assessing process capability.
• Provide a common language to be used throughout an organization to
describe processes.

Relax….it won’t
be that bad!

Statistics is the basic language of Six Sigma


Sigma. A solid understanding of Basic Statistics is the foundation
upon which many of the subsequent tools will be based.

Having an understanding of Basic Statistics can be quite valuable to an individual. Statistics however,
like anything, can be taken to the extreme.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


140

Six Sigma Statistics

Purpose of Basic Statistics (Cont.)

But it is not the need or the intent of this course to do that


that, nor is it the intent of Six Sigma
Sigma. It can
be stated that Six Sigma does not make people into statisticians, rather it makes people into
excellent problem solvers by using appropriate statistical techniques.

Data is like crude oil that comes out of the ground. Crude oil is not of much good use. However if
the crude oil is refined many useful products occur; such as medicines, fuel, food products,
lubricants, etc. In a similar sense statistics can refine data into usable “products” to aid in decision
making, to be able to see and understand what is happening, etc

Statistics is broadly used by just about everyone today. Sometimes we just don’t realize it. Things
as simple as using graphs to better understand something is a form of statistics, as are the many
opinion and political polls used today. With easy to use software tools to reduce the difficulty and
time to do statistical analyses, knowledge of statistics is becoming a common capability amongst
people.

An understanding of Basic Statistics is also one of the differentiating features of Six Sigma and it
would
ld nott b
be possible
ibl without
ith t th
the use off computers
t andd programs liklike MINITAB™
MINITAB™. It hhas b
been
observed that the laptop is one of the primary reasons that Six Sigma has become both popular
and effective.

Statistical Notation – Cheat Sheet

Summation An individual value, an observation

The standard deviation of sample data A particular (1st) individual value

The standard deviation of population data For each, all, individual values

The variance of sample data The mean, average of sample data


The variance of population data
The grand mean, grand average
The range of data
The mean of population data
The average range of data

Multi-purpose notation, i.e. # of subgroups, # A proportion of sample data


of classes
A proportion of population data
The absolute value of some term
Sample size
Greater than, less than

Greater than or equal to, less than or equal to Population size

Use this as a cheat sheet, don’t bother memorizing all of this. Actually most of the notation in Greek is
for population data.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


141

Six Sigma Statistics

Parameters vs. Statistics

Population: All the items that have the “property of interest” under study.

Frame: An identifiable subset of the population.

Sample: A significantly smaller subset of the population used to make an inference.

Population

Sample
Sample
Sample

Population Parameters: Sample Statistics:


– Arithmetic
A ith ti d
descriptions
i ti off a population
l ti – Arithmetic
A ith ti ddescriptions
i ti off a
– µ, σ , P, σ2, N sample
– X-bar , s, p, s2, n

The purpose of sampling is:


To get a “sufficiently accurate” inference for considerably less time, money, and other resources,
and also to provide a basis for statistical inference; if sampling is done well, and sufficiently, then
the inference is that “what
what we see in the sample is representative of the population”
population

A population parameter is a numerical value that summarizes the data for an entire population, a
sample has a corresponding numerical value called a statistic.

The population is a collection of all the individual data of interest. It must be defined carefully, such
as all the trades completed in 2001. If for some reason there are unique subsets of trades it may
be appropriate to define those as a unique population, such as, “all sub custodial market trades
completed in 2001”
2001 or “emerging
emerging market trades”
trades .

Sampling frames are complete lists and should be identical to a population with every element
listed only once. It sounds very similar to population… and it is. The difference is how it is used. A
sampling frame, such as the list of registered voters, could be used to represent the population of
adult general public. Maybe there are reasons why this wouldn’t be a good sampling frame.
Perhaps a sampling frame of licensed drivers would be a better frame to represent the general
public.

The sampling frame is the source for a sample to be drawn.

It is important to recognize the difference between a sample and a population because we typically
are dealing with a sample of the what the potential population could be in order to make an
inference. The formulas for describing samples and populations are slightly different. In most
cases we will be dealing with the formulas for samples.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


142

Six Sigma Statistics

Types of Data

Attribute Data (Qualitative)


– Is always binary, there are only two possible values (0, 1)
• Yes, No
• Go, No go
• Pass/Fail
Variable Data (Quantitative)
– Discrete (Count) Data
• Can be categorized in a classification and is based on counts.
– Number of defects
– Number of defective units
– Number of customer returns
– Continuous Data
• Can be measured on a continuum, it has decimal subdivisions that are
meaningful
– Time, Pressure, Conveyor Speed, Material feed rate
– Money
– Pressure
– Conveyor Speed
– Material feed rate

The nature of data is important to understand. Based on the type of data you will have the option
to utilize different analyses.

Data, or numbers, are usually abundant and available to virtually everyone in the organization.
Using data to measure, analyze, improve and control processes forms the foundation of the Six
Sigma
g methodology. gy Data turned into information,, then transformed into knowledge,
g , lowers the
risks of decision. Your goal is to make more decisions based on data versus the typical practices
of “I think”, “I feel” and “In my opinion”.

One of your first steps in refining data into information is to recognize what the type of data it is
that you are using. There are two primary types of data, they are Attribute and Variable Data.

Attribute Data is also called qualitative data. Attribute Data is the lowest level of data. It is purely
binary in nature. Good or bad, yes or no type data. No analysis can be performed on Attribute
Data. Attribute Data must be converted to a form of Variable Data called Discrete Data in order to
be counted or be useful.

Discrete Data is information that can be categorized into a classification. Discrete Data is based
on counts. It is typically things counted in whole numbers. Discrete Data is data that can't be
broken down into a smaller unit to add additional meaning. Only a finite number of values is
possible and the values cannot be subdivided meaningfully. For example, there is no such thing
as a half of defect or a half of a system lockup.
lockup

Continuous Data is information that can be measured on a continuum or scale. Continuous Data,
also called quantitative data can have almost any numeric value and can be meaningfully
subdivided into finer and finer increments, depending upon the precision of the measurement
system. Decimal sub-divisions are meaningful with Continuous Data. As opposed to Attribute
Data like good or bad, off or on, etc., Continuous Data can be recorded at many different points
(length, size, width, time, temperature, cost, etc.). For example 2.543 inches is a meaningful
number, whereas 2.543 defects does not make sense.

Later in the course we will study many different statistical tests but it is first important to
understand what kind of data you have.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


143

Six Sigma Statistics

Discrete Variables

Discrete Variable Possible values for the variable

The number of defective needles in boxes of 100 0,1,2, …, 100


diabetic syringes

The number of individuals in groups of 30 with a 0,1,2, …, 30


Type A personality

The number of surveys returned out of 300 0,1,2, … 300


mailed in a customer satisfaction study.

The number of employees in 100 having finished 0,1,2, … 100


high school or obtained a GED

The number of times you need to flip a coin 1,2,3, …


before a head appears for the first time
(note, there is no upper limit because you might
need to flip forever before the first head appears.

Shown here are additional Discrete Variables. Can you think of others within your business?

Continuous Variables

Continuous Variable Possible Values for the Variable

The length of prison time served for individuals All the real numbers between a and b,
b where a is
convicted of first degree murder the smallest amount of time served and b is the
largest.

The household income for households with All the real numbers between a and $30,000,
incomes less than or equal to $30,000 where a is the smallest household income in the
population

Th blood
The bl d glucose
l reading
di ffor those
th individuals
i di id l All reall numbers
b b
between
t 200 and d b,
b where
h b is
i
having glucose readings equal to or greater than the largest glucose reading in all such individuals
200

Shown here are additional Continuous Variables. Can you think of others within your business?

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


144

Six Sigma Statistics

Definitions of Scaled Data

• Understanding the nature of data and how to represent it can affect the
types of statistical tests possible.

• Nominal Scale – data consists of names, labels, or categories. Cannot


be arranged in an ordering scheme. No arithmetic operations are
performed for nominal data.

• Ordinal Scale – data is arranged in some order, but differences between


data values either cannot be determined or are meaningless.

• Interval Scale – data can be arranged in some order and for which
differences in data values are meaningful. The data can be arranged in
an ordering scheme and differences can be interpreted
interpreted.

• Ratio Scale – data that can be ranked and for which all arithmetic
operations including division can be performed. (division by zero is of
course excluded) Ratio level data has an absolute zero and a value of
zero indicates a complete absence of the characteristic of interest.

Shown here are the four types of scales. It is important to understand these scales as they will dictate
the type of statistical analysis that can be performed on your data.

Nominal Scale

Listed are some Qualitative Variable Possible nominal level data values for
examples of the variable
Nominal Data.
The only analysis Blood Types A, B, AB, O
is whether they
are different or
not.
State of Residence Alabama, …, Wyoming

Country of Birth United States, China, other

Time to weigh in!

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


145

Six Sigma Statistics

Ordinal Scale

These are examples of


Qualitative Variable Possible Ordinal level data
Ordinal Data.
values

Automobile Sizes Subcompact, compact,


intermediate, full size, luxury

Product rating Poor, good, excellent

Baseball team classification Class A, Class AA, Class AAA,


Major League

Interval Scale

I t
Interval
l Variable
V i bl P
Possible
ibl Scores
S

IQ scores of students in 100…


BlackBelt Training (the difference between scores
is measurable and has
meaning but a difference of 20
points between 100 and 120
does not indicate that one
student is 1.2 times more
i t lli
intelligent
t )

These are examples of Interval Data.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


146

Six Sigma Statistics

Ratio Scale

Ratio Variable Possible Scores Shown here is an


example of Ratio Data.

Grams of fat consumed per adult in the 0…


United States (If person A consumes 25 grams of fat and
person B consumes 50 grams, we can say
that person B consumes twice as much fat
as person A. If a person C consumes zero
grams of fat per day, we can say there is a
complete absence of fat consumed on that
day. Note that a ratio is interpretable and
an absolute zero exists.)

Converting Attribute Data to Continuous Data

Continuous Data
provides us more • Continuous Data is always more desirable
opportunity for
statistical analyses.
Attribute Data can often • In many cases Attribute Data can be converted to
be converted to continuous
Continuous by
converting it to a rate. • Which is more useful?
– 15 scratches or Total scratch length of 9.25”
– 22 foreign materials or 2.5 fm/square inch
– 200 defects or 25 defects/hour

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


147

Six Sigma Statistics

Descriptive Statistics

We will review the Measures of Location (central tendency)


Descriptive Statistics shown – Mean
here which are the most – Median
commonly used. – Mode

1) For each of the measures


Measures of Variation (dispersion)
of location, how alike or
– Range
different are they?
y
– Interquartile Range
2) For each measure of – Standard deviation
variation, how alike or – Variance
different are they?

3) What do these similarities


or differences tell us?

Descriptive Statistics

We are going to use


O pen the M IN ITAB™ Project “ M ea sure Da ta Sets.m pj” the MINITAB™
a nd select the w ork sheet “ ba sicsta tistics.mtw ” worksheet shown here
to create graphs and
statistics. Open the
worksheet
“basicstatistics.mtw”.
.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


148

Six Sigma Statistics

Measures of Location

Mean are the most


common measure of Mean is:
location. A “Mean”, implies • Commonly referred to as the average.
that you are talking about • The arithmetic balance point of a distribution of data.
the population or inferring
Stat>Basic Statistics>Display Descriptive Statistics…>Graphs…
something about the >Histogram of data, with normal curve
population. Conversely,
average,
g implies
p Histogram(with
Hi t
Histogram ( ithNorm
(with N allCurve)
Normal C )of
Curve) offData
D t
Data
Sample
p Population
p
something about sample 80
80
Mean
Mean
StDev
5.000
5.000
StDev 0.01007
0.01007

data. 70
70
NN 200
200

60
60

Although the symbol is 50


FrFrequency

50
e que ncy

different, there is no 40
40
Descriptive Statistics: Data
mathematical difference 30
30
Variable N N* Mean SE Mean StDev Minimum Q1
between the Mean of a 20
20 Median Q3
Data 200 0 4.9999 0.000712 0.0101 4.9700 4.9900
10 5.0000 5.0100
sample and Mean of a 100

00 Variable Maximum
population. 4.97
4.97 4.98
4.98 4.99
4.99
Data
5.00
5.00 5.01
5.01 5.02
5.02 Data 5.0200
Data

The physical
Th h i l center t
of a data set is the Median is:
Median and • The mid-point, or 50th percentile, of a distribution of data.
• Arrange the data from low to high, or high to low.
unaffected by large
– It is the single middle value in the ordered list if there is an odd
data values. This is number of observations
why people use – It is the average of the two middle values in the ordered list if there
Median when are an even number of observations

discussingg averageg
salary for an Histogram
Histogram(with
(withNNormal
ormal Curv e) of
Curve) ofData
Data
M ean 5.000
80
American worker, 80

70
N
Mean
S tD ev
5.000
0.01007
StDev 0.01007
N
200
200
70
people like Bill 60
60

Gates and Warren 50


Frequency

50
Frequency

Descriptive Statistics: Data


40
Buffet skew the 40

30
Variable N N* Mean SE Mean StDev Minimum Q1 Median Q3
30 Data 200 0 4.9999 0.000712 0.0101 4.9700 4.9900 5.0000 5.0100
average number. 20
20 Variable Maximum
10
Data 5.0200
10

00
4.97
4.97 4.98
4.98 4.99
4.99 5.00
5.00 5.01
5.01 5.02
5.02
Dat a
Data

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


149

Six Sigma Statistics

Measures of Location (cont.)

Trimmed Mean is a:
Compromise between the mean and median.
• The trimmed mean is calculated by eliminating a specified percentage
of the smallest and largest observations from the data set and then
calculating the average of the remaining observations
• Useful for data with potential extreme values
values.

Stat>Basic Statistics>Display Descriptive Statistics…>Statistics…> Trimmed Mean

Descriptive Statistics: Data

Variable N N* Mean SE Mean TrMean StDev Minimum Q1 Median


Data 200 0 4.9999 0.000712 4.9999 0.0101 4.9700 4.9900 5.0000

Variable Q3 Maximum
Data 5.0100 5.0200

The trimmed Mean (highlighted above) is less susceptible to the effects of extreme scores.

Mode is:
The most frequently occurring value in a distribution of data.

Mode = 5

H i s t o g r a m ((with
Histogram w ith N o r m a l CCurve)
Normal u r v e ) oof
f DData
a ta
MMean
ean 55.000
.000
880
0
SStDev
tD e v 00.01007
.01 007
NN 2200
00
770
0

660
0

550
0
quency
requency

440
0
Fre
Fr
r

330
0

220
0

110
0

00
44.97
.9 7 44.98
.9 8 44.99
.9 9 55.00
.0 0 55.01
.0 1 55.02
.0 2
DData
ata

It is
i possible
ibl to
t have
h multiple
lti l Modes,
M d when
h this
thi h
happens it’
it’s called
ll d Bi
Bi-Modal
M d l Di
Distributions.
t ib ti H
Here we
only have One mode = 5.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


150

Six Sigma Statistics

Measures of Variation (cont.)

Range is the:
Difference between the largest observation and the smallest
observation in the data set.
• A small range would indicate a small amount of variability and a large
range a large amount of variability.

Descriptive Statistics: Data

Variable N N* Mean SE Mean StDev Minimum Q1 Median Q3


Data 200 0 4.9999 0.000712 0.0101 4.9700 4.9900 5.0000 5.0100

Variable Maximum
Data 5.0200

Interquartile Range is the:


Difference between the 75th percentile and the 25th percentile.

Use Range or Interquartile Range when the data distribution is skewed.

A range is typically used for small data sets which is completely efficient in estimating variation for
a sample of 2. As your data increases the Standard Deviation is a more appropriate measure of
variation.

Standard Deviation is:


Equivalent of the average deviation of values from the mean for a
distribution of data.
A “unit of measure” for distances from the mean.
Use when data are symmetrical.

S
Sample P
Population
l ti

Descriptive Statistics: Data

Variable N N* Mean SE Mean StDev Minimum Q1 Median Q3


Data 200 0 4.9999 0.000712 0.0101 4.9700 4.9900 5.0000 5.0100

Variable Maximum
Data 5.0200

Cannot calculate population Standard Deviation because this is sample data.

The Standard Deviation for a sample and population can be equated with short and long-term
variation.

Usually a sample is taken over a short period of time making it free from the types of variation
that can accumulate over time so be aware.

We will explore this further at a later point in the methodology.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


151

Six Sigma Statistics

Measures of Variation (cont.)

Variance is the:
Average squared deviation of each individual data point from the
mean.

Sample Population

The Variance is the square of the Standard Deviation. It is common in statistical tests where it is
necessary to add up sources of variation to estimate the total. Standard Deviations cannot be
added, variances can.

Normal Distribution

The normal distribution is the most recognized distribution in


statistics.

What are the characteristics of a Normal distribution?


– Only random error is present
– Process free of assignable cause
– Process free of drifts and shifts

So what is present when the data is Non-Normal?

We can begin to discuss the Normal Curve and its properties once we understand the basic
concepts of central tendency and dispersion.

As we begin to assess our distributions know that sometimes it’s actually more difficult to determine
what is effecting a process if it is Normally Distributed. When we have a Non-normal Distribution
there is usually special or more obvious causes of variation that can be readily apparent upon
process investigation.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


152

Six Sigma Statistics

The Normal Curve

The Normal Distribution is


the most commonly used The normal curve is a smooth, symmetrical, bell-shaped curve,
and abused distribution in generated by the density function.
statistics and serves as the
foundation of many
statistical tools which will be
taught later in the
methodology
methodology.

It is the most useful continuous probability model as many


naturallyy occurringg measurements such as heights,
g weights,
g
etc. are approximately normally distributed.

Normal Distribution

The shape of the


Each combination of Mean and Standard Deviation generates a
Normal
unique normal curve:
Distribution is a
function of 2
parameters, (the
Mean and the
Standard
Deviation).

We will convert the “Standard” Normal Distribution


Normal
– Has a μ = 0, and σ = 1
Distribution to the
standard Normal in – D
Datat ffrom any normall di
distribution
t ib ti can be
b made
d to
t
order to compare fit the standard normal by converting raw scores
various Normal to standard scores.
Distributions and
to estimate tail – Z-scores measure how many Standard Deviations from the
area proportions. mean a particular data-value lies.

By normalizing the Normal Distribution this converts the raw scores into standard Z-scores
Z scores with a
Mean of 0 and Standard Deviation of 1, this practice allows us to use the Z-table.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


153

Six Sigma Statistics

Normal Distribution (cont.)

The area under the curve between any 2 points represents the
proportion of the distribution between those points.

The
Thearea
areabetween
betweenthe
the
Mean
Mean andany
and anyother
other
point
pointdepends
dependsupon
uponthethe
Standard Deviation.
Standard Deviation.

μ x
Convert any raw score to a Z-score using the formula:

Refer to a set of Standard Normal Tables to find the


proportion between μ and x.

The area under the curve between any two points represents the proportion of the distribution. The
concept of determining the proportion between 2 points under the standard Normal curve is a critical
componentt to
t estimating
ti ti Process
P Capability
C bilit and
d will
ill b
be covered
d iin d
detail
t il iin th
thatt module.
d l

Empirical Rule

The Empirical rule


allows us to predict or The Empirical Rule…
more appropriately
make an estimate of
how our process is
performing. You will
gain a great deal of
understanding within
the Process Capability
module. Notice the
difference between +/-
1 SD and +/- 6 SD. -6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6

68.27 % of the data will fall within +/- 1 standard deviation


95.45 % of the data will fall within +/- 2 standard deviations
99.73 % of the data will fall within +/- 3 standard deviations
99.9937 % of the data will fall within +/- 4 standard deviations
99.999943 % of the data will fall within +/- 5 standard deviations
99.9999998 % of the data will fall within +/- 6 standard deviations

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


154

Six Sigma Statistics

The Empirical Rule (cont.)

No matter what the shape of your distribution is, as you travel 3 Standard
Deviations from the Mean, the probability of occurrence beyond that point
begins to converge to a very low number.

Why Assess Normality?

There is no W hile ma ny processes in na ture beha ve a ccording to the


good and bad. It N orma l Distribution, ma ny processes in business, pa rticula rly in
is not always the a rea s of service a nd tra nsa ctions, do not
better to have
“Normal” data,
There a re m a ny types of distributions:
look at it in
respect to the
intent of your
project. Again,
there is much
informational
content in non- There a re m a ny sta tistica l tools tha t a ssume N orma l Distribution
Normal properties in their ca lcula tions.
Distributions for
Distributions,
this reason it is
useful to know So understa nding just how “ N orma l” the da ta a re w ill impa ct
how Normal our how w e look a t the da ta .
data are.
Go back to your project, what do you want to do with your distribution, Normal or Non-normal.
Many distributions simply by nature can NOT be Normal. Assume that your dealing with a time
metric how do you get negative time
metric, time, without having a flux capacitor as in the movie “Back
Back to the
Future.” If your metric is, by nature bound to some setting.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


155

Six Sigma Statistics

Tools for Assessing Normality

The Anderson
Darling test yields a The sha pe of a ny norma l curve ca n be ca lcula ted ba sed
statistical on the norma l proba bility density function.
assessment (called
a goodness-of-fit
test) of Normality Tests for N orma lity ba sica lly compa re the sha pe of the
and the MINITAB™ ca lcula ted curve to the a ctua l distribution of your da ta
version of the points.
N
Normal l probability
b bili
test produces a For the purposes of this tra ining, w e w ill focus on 2
graph to visual
w a ys in M IN ITAB™ to a ssess N orma lity:
demonstrate just
how good that fit is. – The Anderson-Da rling test
– N orma l proba bility test

Watch that curve!

Goodness-of-Fit

The Anderson-Darling test uses an empirical density function.

100
Expected for Normal Distribution
Departure of the Actual Data
20%
actual data from the
80
expected normal C
u
m
distribution. The u
l
a 60
Anderson-Darling t
i
v
Goodness-of-Fit test e
P
assesses the e 40
r
c
magnitude of these e
n
departures using an t
20
Observed minus 20%
Expected formula. 0
3.0 3.5 4.0 4.5 5.0 5.5
Raw Data Scale

Anderson-Darling assess how closely actual frequency at a given value corresponds to the
theoretical frequency for a Normal Distribution with the same Mean and Standard Deviation.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


156

Six Sigma Statistics

The Normal Probability Plot

Probability
ProbabilityPlot
Plotof
ofAmount
Amount
Normal
Normal
99.9
99.9
Mean
Mean 84.69
84.69
StDev
StDev 7.913
7.913
99
99 NN 70
70
AD
AD 0.265
0.265
95
95 P-Value 0.684
P-Value 0.684
90
90
80
80
70
ercent

70
rcent

60
60
50
50
40
40
Pe
Pe

30
30
20
20
10
10
55

11

0.1
0.1
60
60 70
70 80
80 90
90 100
100 110
110
Amount
Amount

The Anderson-Darling test is a good litmus


test for normality: if the P-value is more
than .05, your data are normal enough for
most purposes.

The graph shows the probability density of your data plotted against the expected density of a
N
Normal l curve. NNotice
ti ththatt th
the y-axis
i ((probability)
b bilit ) d
does nott iincrease lilinearly.
l N Normall d
data
t will
ill lilie on a
straight line (the red line) in this analysis. The graph shows you which values tend to deviate from
the Normal curve.

Descriptive Statistics

The Anderson-Darling test also appears in this output. Again,


if the P-value is greater than .05, assume the data are normal.

The reasoning behind the


decision to assume
normality based on the P -
value will be covered in
the Analyze Phase. For
now, just accept this as a
general guideline.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


157

Six Sigma Statistics

Anderson-Darling Caveat

Use the Anderson Darling column to generate these graphs.


Summary
Summary for
for Anderson
AndersonDarling
Darling
Probability
Probability Plot
Plotof
of Anderson
AndersonDarling
Darling AAnderson-D
nderson-Darling
arlingNNorm ality TTest
est
Normal
Normal ormality
AA-S-Squared
quared 0.18
0.18
99.9
99.9 PP-V-Value
alue 0.921
0.921
Mean
Mean 50.03
50.03 MMean
ean 50.031
50.031
StDev
StDev 4.951
4.951
99 SStD
tDev
ev 4.951
4.951
99 NN 500
500 VVariance 24.511
ariance 24.511
AADD 0.177 SSkew
95
0.177 kewness
ness -0.061788
-0.061788
95 P-Value
P-Value 0.921
0.921 KKurtosis
urtosis -0.180064
-0.180064
90
90 NN 500
500
80
80 MMinim um
inimum 35.727
35.727
70 1st
1stQQuartile
uartile 46.800
46.800
70
Perrcent
cent

60
60 MMedian
edian 50.006
50.006
50
50 3rd
3rdQQuartile
uartile 53.218
53 218
53.218
Perc

40
40
36
36 40
40 44
44 48
48 52
52 56
56 60
60 MMaxim um 62.823
aximum 62.823
30
30 95%
95%CConfidence
onfidenceInterv
Intervalalfor
forMMean
ean
20
20 49.596
49.596 50.466
50.466
10
10 95%
95%CConfidence
onfidenceInterv
Intervalalfor
forMMedian
edian
55 49.663 50.500
49.663 50.500
95%
95%CConfidence
onfidenceInterv
Intervalalfor
forSStD
tDev
ev
11 9955%
% CConfide nce IInter
onfidence nte r vvaals
ls
4.662
4.662 5.278
5.278
Mean
Mean
0.1
0.1
35
35 40
40 45
45 50
50 55
55 60
60 65
65 Median
Median
AAnderson
ndersonDarling
Darling 49.50 49.75 50.00 50.25 50.50
49.50 49.75 50.00 50.25 50.50

In this case, both the Histogram and the Normality Plot look very “normal”. However,
because the sample size is so large, the Anderson-Darling test is very sensitive and any
slight deviation from normal will cause the p-value to be very low
low. Again
Again, the topic of
sensitivity will be covered in greater detail in the Analyze Phase.

For now, just assume that if N > 100 and the data look normal, then they probably are.

If the Data Are Not Normal, Don’t Panic!

Once again, Non-


normal Data is NOT a • Normal data are not common in the transactional world.
bad thing, depending
on the type of process • There are lots of meaningful statistical tools you can use to
/ metrics yyou are analyze your data (more on that later).
working with.
Sometimes it can even • It just means you may have to think about your data in a
be exciting to have slightly different way.
Non-normal Data
because in some ways
it represents
opportunities for
improvements
improvements.

Don’t touch that button!

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


158

Six Sigma Statistics


Normality Exercise

Ex ercise objective: To demonstra te how to


test for N orma lity.

1 . Genera te N orma l Proba bility Plots a nd


the gra phica l summa ry using the
“ Descriptive Sta tistics M TW ” file.
tistics.M file

2 . Use only the columns Dist A a nd Dist D.

3 . Answ er the follow ing quiz questions


ba sed on your a na lysis of this da ta set.

Answers:
1) Is Distribution A Normal? Answer > No
2) Is Distribution B Normal? Answer > No

Isolating Special Causes from Common Causes

Don’t get too worried


about killing all variation, Special Cause: Variation is caused by known factors that result in
get the biggest bang for a non-random distribution of output. Also referred to as “Assignable
your buck and start Cause”.
making improvements by
following the
methodology. Many Common Cause: Variation caused by unknown factors resulting in
a steady but random distribution of output around the average of
companiesi ttoday
d can
the data. It is the variation left over after special cause variation has
realize BIG gains and
been removed and typically (not always) follows a normal
reductions in variation by
distribution.
simply measuring,
describing the
performance and then If we know that the basic structure of the data should follow a
making common sense normal distribution, but plots from our data shows otherwise; we
adjustments within the know the data contain special causes.
process…recall the
“ground fruit”?
Special Causes = Opportunity
Think about your data in
terms of what it should
look like, then compare it to what it does look like. See some deviation, maybe some Special
Causes at work?

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


159

Six Sigma Statistics

Introduction to Graphing
Passive data
collection means The purpose of Gra phing is to:
don’t mess with the • Identify potential relationships between variables.
process! We are • Identify risk in meeting the critical needs of the Customer,
gathering data and Business and People.
looking for patterns • Provide insight into the nature of the X’s which may or may not
in a graphical tool. If control Y.
the data is
• Show the results of passive data collection
collection.
questionable, so is
the graph we create
from it. For now In this section w e w ill cover…
utilize the data 1. Box Plots
available, we will 2. Scatter Plots
learn a tool called
3. Dot Plots
Measurement
System Analysis 4. Time Series Plots
later in this phase. 5. Histograms

Data Sources
Data
demographics Data sources are suggested by many of the tools that have
will come out of
the basic
been covered so far:
Measure Phase – Process Map
tools such as – X-Y Matrix
Process Maps, – Fishbone Diagrams
X-Y Diagrams,
FMEAs and – FMEA
Fishbones. Put
your focus on Examples are:
the top X’s from
X-Y Diagram to 1. Time 3. Operator
focus your Shift Training
Day of the week Experience
activities.
Week of the month Skill
S
Season off th
the year Adherence to procedures

2. Location/position 4. Any other sources?


Facility
Region
Office

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


160

Six Sigma Statistics

Graphical Concepts

The characteristics of a graph are


critical to the graphing process. The characteristics of a good graph include:
The validity of data allows us to • Variety of data
understand the extent of error in • Selection of
– Variables
the data. The selection of
– Graph
variables impacts how we can
– Range
control a specific output of a
process. The type
p yp of g
graph
p will Information to interpret relationships
depend on the data
demographics while the range Explore quantitative relationships
will be related to the needs of the
customer. The visual analysis of
the graph will qualify further
investigation of the quantitative
relationship between the
variables
variables.

The Histogram
A Histogram is a basic graphing tool
that displays the relative frequency A Histogram displays data that have been summarized into
or the number of times a measured intervals. It can be used to assess the symmetry or skewness of the
items falls within a certain cell size. data.
Histogram
Histogramof
ofHistogram
Histogram
The values for the measurements
are shown on the horizontal axis (in 40
40

cells) and the frequency of each size


30
is shown on the vertical axis as a bar 30
FrFrequency
equency

graph. The graph illustrates the


20
20
distribution of the data by showing
which values occur most and least 10
10
frequently. A Histogram illustrates
the shape, centering and spread of 00
98
98 99
99 100
100 101
101 102
102 103
103
the data you have. It is very easy to HHistogram
istogram

construct and an easy to use tool


that you will find useful in many
situations. This graph represents the To construct a Histogram, the horizontal axis is divided into equal
data for the 20 days of arrival times intervals and a vertical bar is drawn at each interval to represent its
intervals,
at work from the previous lesson frequency (the number of values that fall within the interval).
page.
In many situations the data will form specific shaped distributions. One very common distribution
you will encounter is called the Normal Distribution, also called the bell shaped curve for its
appearance. You will learn more about distributions and what they mean throughout this course.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


161

Six Sigma Statistics

Histogram Caveat
As you can see in
the MINITAB™ file All the Histograms below were generated using random samples of
the columns used to the data from the worksheet “ Graphing Data.mtw” .
generate the
Histogram
Histogramof
ofH1_20,
H1_20, H2_20,
H2_20, H3_20,
H3_20,H4_20
H4_20
Histograms above 98
98 99
99 100
100 101
101 102
102
only have 20 data 44
H1_20
H1_20
44
H2_20
H2_20

points. It is easy to 33 33

generate your own 22 22

samples to create 11 11

FFrequency
requency
Histogram simply by 00
88
H3_20
H3_20
00
88
H4_20
H4_20

using the MINITAB™ 66 66


menu path: 44 44
“Calc>Random 22 22

Data>Sample from 00 00
98
98 99
99 100
100 101
101 102
102
columns…”
Be careful not to determine N ormality simply from a Histogram plot,
if the sample size is low the data may not look very N ormal.

Variation on a Histogram

The
Histogram Using the worksheet “ Graphing Data.mtw” create a simple Histogram for
the data column called granular.
shown
here looks
to be very
Normal. Histogram of Granular
25

20

15
Frequency

10

0
44 46 48 50 52 54 56
Granular

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


162

Six Sigma Statistics

Dot Plot
Using the worksheet “Graphing
Graphing
Data.mtw”, create a Dot Plot. The Dot Plot can be a useful alternative to the Histogram especially if you
want to see individual values or you want to brush the data.
Histogram for the granular
distribution obscures the granularity,
whereas the Dot Plot reveals it.
Also, Dot Plots allow the user to
brush data points. The Histogram
Dotplot
Dotplotof
of Granular
Granular
does not
not.

Points could have Special Causes


associated with them.

These occurrences should also be 44 46 48 50 52 54 56


44 46 48 50 52 54 56
identified in the Logbook in order to Granular
Granular

assess the potential for a special


cause related to them
them. You should
look for potential Special Cause
situations by examining the Dot Plot for both high frequencies and location.

If in fact there are special causes (Uncontrollable Noise or Procedural non-compliance) then they
should be addressed separately and then excluded from this analysis.

Take a few minutes and create other Dot Plots using the columns in this data set.

Box Plot
A Box Plot (sometimes called a
Whisker Plot) is made up of a box Box Plots summarize data about the shape, dispersion and center of the
representing the central mass of the data and also help spot outliers.
variation and thin lines, called Box Plots require that one of the variables, X or Y, be categorical or
whiskers extending out on either
whiskers, discrete and the other be continuous
continuous.
side representing the thinning tails of
A minimum of 10 observations should be included in generating the box
the distribution. Box Plots summarize plot.
information about the shape, Maximum Value

dispersion and center of your data.


Because of their concise nature, it
75th Percentile
easy to compare multiple Middle
distributions side by side. 50% of 50th Percentile (Median)
Data
Mean
25th Percentile
These may be “before” and “after”
views of a process or a variable. Or
they may be several alternative ways
min(1.5 x Interquartile Range
of conducting an operation. or minimum value)
Essentially, when you want to quickly Outliers

find out if two or more distributions


are different (or the same) then you
create a Box Plot. They can also
help you spot outliers quickly which
show up as asterisks on the chart.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


163

Six Sigma Statistics

Box Plot Anatomy


A Box Plot is based on quartiles and
represents a distribution as shown * Outlier
on the left of the graphic. The lines Upper Limit: Q3+1.5(Q3-Q1)
extending from the box are called
whiskers. The whiskers extend Upper Whisker
outward to indicate the lowest and
highest values in the data set Q3: 75th Percentile
(excluding outliers). The lower

B ox
Median
whisker represents the first 25% of Q2 Median
Q2: M di 50th Percentile
P til
the data in the Histogram (the light Q1: 25th Percentile
grey area). The second and third
quartiles form the box, which
Lower Whisker
represents fifty percent of the data
and finally the whisker on the right
Lower Limit: Q1+1.5(Q3-Q1)
represents the fourth quartile. The
line drawn through the box
represents the median of the data. Extreme values, or outliers, are represented by asterisks. A
value is considered an outlier if it is outside of the box (greater than Q3 or less than Q1) by more
than 1.5 times (Q3-Q1).

You can use the Box Plot to assess the symmetry of the data: If the data are fairly symmetric,
the Median line will be roughly in the middle of the box and the whiskers will be similar in length.
If the data are skewed, the Median may not fall in the middle of the box and one whisker will
likel be noticeabl
likely noticeably longer than the other
other.

Box Plot Examples

The first Box Plot


shows the differences Boxplot
Boxplot of
of Glucoselevel
Glucoselevel vs
vs SubjectID
SubjectID
in glucose level for 225
225 What can you tell about
nine different people. 200
200
the data expressed in a
B Pl
Box Plots?
t ?
175
175
The second Box Plot
Glucoselevel
s e le v e l

shows the effects of 150


150

cholesterol 125
Gluco

125

medication over time 100


100
for a group of
75
75
patients. Cholesterol
Cholesterol Levels
Levels
50
50
11 22 33 44 55 66 77 8350
8350 99
SubjectID
SubjectID

300
300

Eat this – 250


250
Data
ta

then check
Da

200
200

the Box 150


150

Plot! 100
100
2-Day
2-Day 4-Day
4-Day 14-Day
14-Day

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


164

Six Sigma Statistics

Box Plot Examples

Using the
MINITAB™
worksheet “Graphing
Data.mtw”.

The data shows the setup


cycle time to complete The data shows the setup cycle time to complete “Lockout –
“Lockout – Tagout” for three Tagout” for 3 individuals in the department.
people in the department.

Looking only at the Box Plots,


SetupCycle
Setup Cycle Timefor
Time for "Lockou
"Lockoutt -- Tagout"
Tagout"
it appears that Brian should
be the benchmark for the 20.0
20.0
department since he has the
lowest median setup cycle 17.5
17.5
time with the smallest
variation. On the other hand, 15.0
15.0
Shree’s data has 3 outlier
12.5
12.5
DData

points that are well beyond


ata

what would be expected for


the rest off the data and his 10.0
100
10.0
variation is larger.
7.5
7.5
Be cautious drawing
conclusions solely from a Box 5.0
5.0
Plot. Shree may be the expert
BBrian
rian Greg
Greg Shree
Shree
who is brought in for special
setups
p because no one else
can complete the job.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


165

Six Sigma Statistics

Individual Value Plot Enhancement

Open the
O h MINITAB™ P Project
j The individual value plot shows the individual data points that are
“Measure Data Sets.mpj” and represented in the Box Plot.
select the worksheet “Graphing
Data.mtw”.

The individual value plot shows


the individual data points that are Individual
Individual Value
Value Plot
Plot of
of Brian,
Brian, Greg,
Greg, Shree
Shree
represented
p in the Box Plot. 20.0
20.0

There are many options available 17.5


17.5
within MINITAB™, take a few
15.0
15.0
minutes and explore the options
within the dialog box found by 12.5

Data
12.5

Da ta
following the menu path “Graph> 10.0
10.0
Individual Value Plot> Multiple
7.5
7.5
Y’s, Simple…”.
5.0
5 0
5.0

Brian
Brian Greg
Greg Shree
Shree

Attribute Y Box Plot

Using the MINITAB™


worksheet “Graphing
Box Plot with an attribute Y (pass/fail) and a continuous X
Data.mtw”. Graph> Box Plot…One Y, With Groups…Scale…Transpose value and category scales

To create this Box


Plot follow the
MINITAB™ menu
path “Graph>
Graph> Box
Plot…One Y, With
Groups…Scale…Tran
spose value and
category scales”.

If the output is
pass/fail, it must be
plotted on the y axis.
Use the data shown
to create the
transposed Box Plot.
The reason we do this
is for consistency and
accuracy.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


166

Six Sigma Statistics

Attribute Y Box Plot

The dialog box


shown here can be
found by selecting
the “Scale” button
in the “One Y, With
Groups “ dialog
box.
Boxplot
Boxplot of
of Hydrogen
Hydrogen Content
Content vs
vs Pass/Fail
Pass/Fail

The output Y is
Pass/Fail, the Box
11
Plot shows the
spread of hydrogen

Pass/Fail
Pass/Fail
content that created
the results.
22

215.0
215.0 217.5
217.5 220.0
220.0 222.5
222.5 225.0
225.0 227.5
227.5 230.0
230.0 232.5
232.5
Hydrogen
Hydrogen Content
Content

Individual Value Plot

Using the MINITAB™


worksheet “Graphing The Individual Value Plot when used with a Categorical X or Y
Data.mtw”, follow the enhances the information provided in the Box Plot:
MINITAB™ menu
path “Stat>ANOVA> – Recall the inherent problem with the Box Plot when a bimodal
One-Way (Unstacked distribution exists (Box Plot looks perfectly symmetrical)
)>Graphs…Individual – The Individual Value Plot will highlight the problem
value plot, Boxplots of
data”, make both
Stat>ANOVA> One-Way (Unstacked )>Graphs…Individual value plot, Box Plots of data
graphs using the
columns indicated
and tile them. Boxplot
Boxplotof
of Weibull, Norm
Weibull, al, Bi
Normal, Bi Modal
Modal Individual
Individual Value
ValuePlot
Plotof
ofW eibull, Norm
Weibull, al, Bi
Normal, BiModal
Modal
30
30 30
30

25
25 25
25

20
20 20
20
Data
Data

15
15 15
15
ta
ta

Da
Da

10
10 10
10

55 55

00 00

Weibull
Weibull Normal
Normal BiBiModal
Modal Weibull
Weibull Normal
Normal BiBiModal
Modal

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


167

Six Sigma Statistics

Jitter Example
By using the Jitter
function we will Once your graph is created, click once on any of the data points (that
action should select all the data points).
spread the data apart
Then go to MINITAB™ menu path: Editor> Edit Individual Symbols…Jitter…
making it easier to
Increase the jitter in the x-direction to .075, click OK, then click anywhere
see how many data on the graph except on the data points to see the results of the change.
points there are.
This gives us
Individual
Individual Value
Value Plot
Plot of
of Weibull,
Weibull, Normal,
Normal, Bi
Bi Modal
Modal
relevance so we 30
30

don’t have points


25
25
plotted on top of
each other. 20
20

Data
15

Data
15

10
10

55

00

Weibull
Weibull Normal
Normal Bi
Bi Modal
Modal

Time Series Plot

Using the MINITAB™ Time series plots allow you to examine data over time.
worksheet “Graphing
Depending on the shape and frequency of patterns in the plot,
Data.mtw”.
several X’s can be found as critical or eliminated.
A Time Series is Graph> Time Series Plot> Simple...
created by following
the MINITAB™ menu
path “Graph>
Graph> Time
Time Series
Time Series Plot
Plot of
of Time 11
Time
Series Plot>
Simple...” 602
602

Time Series Plots are 601


601
very useful in most
projects. Every 600
600
Time 11

project should provide


Time

time series data to 599


599
look for frequency,
magnitude and 598
598
patterns. What X
would cause these 597
597
11 10
10 20
20 30
30 40
40 50
50 60
60 70
70 80
80 90
90 100
100
issues? Index
Index

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


168

Six Sigma Statistics

Time Series Example


Looking at the Time
Looking at the time series plot below, the response appears to be
Series Plot, the
very dynamic.
response appears to
be very dynamic.
Time
TimeSeries
Series Plot
Plotof
of Time
Time11

The benefit of this 602


602
approach to charting
601
is you can see every 601

d t point
data i t as it is
i
600
600

Time 11
gathered over time.
Time
Some interesting 599
599
occurrences can be
revealed. 598
598

597
597
11 10
10 20
20 30
30 40
40 50
50 60
60 70
70 80
80 90
90 100
100
Index
Index

What other characteristic is present?

Using the MINITAB™


worksheet “Graphing Let’s look at some other time series plots.
Data.mtw”. What is happening within each plot?
What is different between the two plots?
Now let’s lay two
Time Series on top of Graph> Time Series Plot> Multiple...(use variables Time 2 and Time 3)

each other. This can


Time
Time Series
Series Plot
Plot of
of Time
Time 2,
2, Time
Time 33
be done by following
605
605 Variable
Variable
the MINITAB™ menu Time
Time 22
604
604 Time
Time 33
path “Graph> Time
603
603
Series Plot>
602
602
Multiple...” (use
601
601
variables Time 2 and
Data
Data

600
600
Time 3).
599
599

What is happening 598


598

within each plot? 597


597
What’s the difference 596
596
between the two 11 10
10 20
20 30
30 40
40 50
50 60
60 70
70 80
80 90
90 100
100
Index
Index
plots? Time 3 appears
to have wave pattern.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


169

Six Sigma Statistics

Curve Fitting Time Series


Using the
MINITAB™ MINITAB™ allows you to add a smoothed line to your time series
worksheet based on a smoothing technique called Lowess.
“Graphing Lowess means Locally Weighted Scatterplot Smoother.
Data.mtw”.
Graph> Time Series Plot> Simple…(select variable Time 3)…Data View…Smoother…Lowess

MINITAB™
allows you to Time
Time Series
Series Plot
Plot of
of Time
Time 33
add a 605
605

smoothed line 604


604

603
to your time 603

602
602
series based on
601
601

Time 33
a smoothing

Time
600
600
technique 599
599
called Lowess. 598
598

597
597

596
596
11 10
10 20
20 30
30 40
40 50
50 60
60 70
70 80
80 90
90 100
100
Index
Index

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


170

Six Sigma Statistics

At this point, you should be able to:

ƒ Explain the various statistics used to express location and spread


of data

ƒ Describe characteristics of a Normal Distribution

ƒ Explain Special Cause variation

ƒ Use data to generate various graphs and make interpretations


based on their output

You have now completed Measure Phase – Six Sigma Statistics.

Notes

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


171

Lean Six Sigma


Black Belt Training

Measure Phase
Measurement System Analysis

Now we will continue in the Measure Phase with “Measurements System Analysis”.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


172

Measurement System Analysis

Overview

Measurement System
Analysis is one of those Welcome
Welcome to
to Measure
Measure
non-negotiable items!
MSA is applicable in Process
Process Discovery
Discovery
98% of projects and it
alone can have a Six
Six Sigma
Sigma Statistics
Statistics
massive effect on the
success of your project Measurement
Measurement System
y
System Analysis
y
Analysis
and improvements
within the company. Basics
Basics of
of MSA
MSA
In other words, LEARN
IT & DO IT. It is very Variables
Variables MSA
MSA
important. Attribute
Attribute MSA
MSA

Process
Process Capability
Capability

Wrap
Wrap Up
Up &
& Action
Action Items
Items

Introduction to MSA

So far we have learned that the heart and soul of Six Sigma is
that it is a data-driven methodology.
– How do you know that the data you have used is accurate and
precise?
– How do know if a measurement is a repeatable and
reproducible?

How good are these?

Measurement System Analysis


or
or
MSA

In order to improve your processes, it is necessary to collect data on the "critical to" characteristics.
When there is variation in this data, it can either be attributed to the characteristic that is being
measured and to the way that measurements are being taken; which is known as measurement error.
When there is a large measurement errorerror, it affects the data and may lead to inaccurate decision
decision-
making.

Measurement error is defined as the effect of all sources of measurement variability that cause an
observed value (measured value) to deviate from the true value.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


173

Measurement System Analysis

Introduction to MSA (Cont.)


The measurement system is the complete process used to obtain measurements, such as the
procedures, gages and personnel that are employed to obtain measurements. Each component
of this system represents a potential source of error. It is important to identify the amount of error
and, if necessary, the sources of error. This can only be done by evaluating the measurement
system with statistical tools.

There are several types of measurement error which affect the location and the spread of the
distribution. Accuracy, linearity and stability affect location (the average). Measurement accuracy
describes the difference between the observed average and the true average based on a master
reference value for the measurements. A linearity problem describes a change in accuracy
through the expected operating range of the measuring instrument. A stability problem suggests
that there is a lack of consistency in the measurement over time. Precision is the variability in the
measured value and is quantified like all variation by using the standard deviation of the
distribution of measurements. For estimating accuracy and precision, multiple measurements of
one single characteristic must be taken.

The primary contributors to measurement system error are repeatability and reproducibility
reproducibility.
Repeatability is the variation in measurements obtained by one individual measuring the same
characteristic on the same item with the same measuring instrument. Reproducibility refers to
the variation in the average of measurements of an identical characteristic taken by different
individuals using the same instrument.

Given that Reproducibility and Repeatability are important types of error, they are the object of a
specific study called a Gage Repeatability & Reproducibility study (Gage R&R). This study can be
performed on either attribute-based or variable-based measurement systems. It enables an
evaluation of the consistency in measurements among individuals after having at least two
individuals measure several parts at random on a few trials. If there are inconsistencies, then the
measurement system must be improved.

Measurement System Analysis


Measurement System Analysis is the MSA is a mathematical procedure to quantify variation introduced to a
entire system, NOT just calibration or process or product by the act of measuring.
how good the measurement instrument
is. We must evaluate the entire
environment and Measurement System Item to be Reference
Analysis gives us a way to evaluate the Measured Measurement
measurement environment Operator Measurement Equipment
mathematically. Process

All these sources of variation combine Procedure


to yield a measurement that is different Environment
than the true value.
The item to be measured can be a physical part, document or a scenario for customer service.
It is also referred to as “Gage R&R” Operator can refer to a person or can be different instruments measuring the same products.
studies where R&R is: Repeatability & Reference is a standard that is used to calibrate the equipment.
Procedure is the method used to perform the test.
Reproducibility. Equipment
q p is the device used to measure the pproduct.
Environment is the surroundings where the measures are performed.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


174

Measurement System Analysis

Measurement Purpose
Measurement is a process within In order to be worth collecting,
g, measurements must provide
p value -
itself. In order to measure something that is, they must provide us with information and ultimately,
you must go through a series of tasks knowledge
and activities in sequence. Usually
there is some from of set-up, there is The question…
an instrument that makes the
measurement, there is a way of
recording the value and it may be
What do I need to know?
done by multiple people.
people Even when
you are making a judgment call about …must be answered before we begin to consider issues of measurements,
metrics, statistics, or data collection systems
something, there is some form of
setup. You become the instrument
and the result of a decision is Too often, organizations build complex data collection and
information management systems without truly understanding how
recorded someway; even if it is verbal
the data collected and metrics calculated actually benefit the
or it is a set of actions that you take.
organization.
The ttypes and
Th d sophistication
hi ti ti off
measurement vary almost infinitely. It is becoming increasingly popular or cost effective to have
computerized measurement systems. The quality of measurements also varies significantly - with
those taken by computer tending to be the best. In some cases the quality of measurement is so
bad that you would be just as well off to guess at what the outcome should be. You will be
primarily concerned with the accuracy, precision and reproducibility of measurements to determine
the usability of the data.

Purpose
The purpose of
conducting an MSA is The purpose of MSA is to assess the error due to
to mathematically measurement systems.
partition sources of
The error can be partitioned into specific sources:
variation within the
measurement system – Precision
itself. This allows us • Repeatability - within an operator or piece of equipment
to create an action • Reproducibility - operator to operator or attribute gage to
plan to reduce the attribute gage
biggest contributors of – Accuracy
measurement error. • Stability - accuracy over time
• Linearity-
Linearity accuracy throughout the measurement range
• Resolution
• Bias – Off-set from true value
– Constant Bias
– Variable Bias – typically seen with electronic
equipment, amount of Bias changes with setting
levels

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


175

Measurement System Analysis

Accuracy and Precision

Measurement systems,
systems like
all things, generate some Accurate
Accuratebut butnotnotprecise
precise--On On Precise
Precisebut
butnotnotaccurate
accurate--The
The
average,
average,thetheshots
shotsare
areininthe average
averageisisnot
noton onthe
thecenter,
center,but
amount of variation in the the but
center
centerofofthe
thetarget
targetbut
butthere
thereisisaa the
thevariability
variabilityisissmall
small
results/data they output. In lot
lotof
ofvariability
variability
measuring, we are primarily
concerned with 3
characteristics:

1. How
1 H accurate
t is
i th
the
measurement? For a
repeated measurement,
where is the average
compared to some known
standard?. Think of the
target as the measurement
system,, the
syste t e known
o
standard is the bulls eye in
the center of the target. In
the first example you can see the “measurements” are very dispersed, there is a lot of variability as
indicated by the Histogram curve at the bottom. But on average, the “measurements” are on target.
When the average is on target, we say the measurement is accurate. However, in this example they
are not very precise.

2 How precise is the measurement? For a repeated measurement


2. measurement, how much variability exists? As
seen in the first target example, the “measurements” are not very precise, but on the second target
they have much less dispersion. There is less variability as seen in the Histogram curve. However, we
notice that the tight cluster of “measurements” are off target, they are not very accurate.

3. The third characteristic is how reproducible is the measurement from individual to another? What is
the accuracy and precision from person to person. Here you would expect each person that performs
the measurement to be able to reproduce the same amount of accuracy and precision as that of other
person performing
f i the
h same measurement.

Ultimately, we make decisions based on data collected from measurement systems. If the
measurement system does not generate accurate or precise enough data, we will make the decisions
that generate errors, waste and cost. When solving a problem or optimizing a process, we must know
how good our data are and the only way to do this is to perform a Measurement System Analysis.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


176

Measurement System Analysis

MSA Uses

M SA ca n be used to:

Compare internal inspection standards with the standards of your


customer.

Highlight areas where calibration training is required.

Provide a method to evaluate inspector training effectiveness as well


as serves as an excellent training tool.

Provide a great way to:


–Compare existing measurement equipment.
–Qualify new inspection equipment.

The measurement system always has some amount of variation and that variation is additive to
the actual amount of true variation that exists in what we are measuring. The only exception is
when the discrimination of the measurement system is so poor that it virtually sees everything the
same.

This means that you may actually be producing a better product or service than you think you are,
providing that the measurement system is accurate; meaning it does not have a bias, linearity or
stability problem. It may also mean that your customer may be making the wrong interpretations
about your product or service.

The components of variation are statistically additive. The primary contributors to measurement
system error are Repeatability and Reproducibility. Repeatability is the variation in measurements
obtained by one individual measuring the same characteristic on the same item with the same
measuring instrument. Reproducibility refers to the variation in the average of measurements of an
identical characteristic taken by different individuals using the same instrument.

Why MSA?
Why is MSA so important?
M ea surem ent System Ana ly sis is important to:
MSA is was allows us to trust
• Study the % of variation in our process that is caused by our
the data generated from our measurement system.
processes. When you charter • Compare measurements between operators.
a project you are taking on a • Compare measurements between two (or more) measurement
significant burden which will devices.
require Statistical Analysis. • Provide criteria to accept new measurement systems (consider new
What happens if you have a equipment).
great project, with lots of data • Evaluate a suspect gage
gage.
from measurement systems • Evaluate a gage before and after repair.
that produce data with no • Determine true process variation.
integrity?
• Evaluate effectiveness of training program.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


177

Measurement System Analysis

Appropriate Measures
Sufficient means that are
Sufficient,
measures are available to Appropria te M ea sures are:
be measured regularly, if
not it would take too long • Sufficient – available to be measured regularly
to gather data.

Relevant, means that they • Relevant –help to understand/ isolate the problems
will help to understand
and isolate the problems.
problems
• Representative - of the process across shifts and people
Representative measures
mean that we can detect • Contextual – collected with other relevant information that
variation across shifts and might explain process variability.
people.

Contextual means they are necessary to gather information on other relevant information that actually
ld h
would help
l tto explain
l i sources off variation.
i ti

Poor Measures
It is very common
while working gpprojects
j Poor M ea sures can result from:
to discover that the
current measurement • Poor or non-existent operational definitions
systems are poor. • Difficult measures
Have you ever come
across a situation • Poor sampling
where the data from • Lack of understanding of the definitions
your customer or
supplier doesn’t
doesn t match • Inaccurate,
Inaccurate insufficient or non-calibrated
non calibrated measurement
yours? It happens devices
often. It is likely a
problem with one of
the measurement
M ea surement Error compromises decisions that affect:
systems. We have – Customers
worked MSA projects – Producers
across critical – Suppliers
measurement points
in various companies,
it is not uncommon for more than 80% of the measurements to fail in one way or another.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


178

Measurement System Analysis

Examples of What to Measure


At this point you should
have a fairly good idea Ex a mples of w ha t a nd w hen to m ea sure:
of what to measure, • Primary and secondary metrics
listed here are some
ideas to get you • Decision points in Process Maps
thinking… • Any and all gauges, measurement devices, instruments, etc
• “ X’s” in the process
• Prior to Hypothesis Testing
• Prior to modeling
• Prior to planning designed experiments
• Before and after process changes
• To qualify operators

M SA is a Show Stopper!!!

Components of Variation

W henever y ou mea sure a nything, the va ria tion tha t you


observe ca n be segmented into the follow ing components…

O bserved Va ria tion

Unit-to-unit (true) Variation Measurement System Error

Precision Accuracy

Repeatability Reproducibility
p y Stability
y Bias Linearity
y

All measurement systems have error. If you don’t know how much of the
variation you observe is contributed by your measurement system, you
cannot make confident decisions.

If you w ere one speeding tick et a w a y from losing your license,


how fa st w ould you be w illing to drive in a school zone?

We are going to strive to have the measured variation be as close as possible to the true variation.
In any case we want the variation from the measurement system to be a small as possible. We are
now going to investigate the various components of variation of measurements.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


179

Measurement System Analysis

Precision

A precise metric is one that returns the same value of a given The spread of the data
is measured by
attribute every time an estimate is made.
Precision. This tells us
how well a measure
can be repeated and
Precise data are independent of who estimates them or when
reproduced.
the estimate is made.

Precision can be partitioned into two components:


– Repeatability
– Reproducibility

Repea ta bility a nd Reproducibility = Ga ge R+R

Repeatability
Measurements will be Repea ta bility is the variation in measurements obtained with one
different…expect it! If mea surement instrument used several times by one appraiser
measurement are while measuring the identical characteristic on the sa m e pa rt.
always exactly the
same this is a flag,
sometimes it is Y
because the gauge
does not have the
proper resolution,
meaning the scale
doesn’t go down far Repeatability
enough to get any For example:
variation in the – Manufacturing: One person measures the purity of multiple samples
measurement. of the same vial and gets different purity measures.
– Transactional: One person evaluates a contract multiple times (over a
For example, would
period of time) and makes different determinations of errors.
you use a football field
to measure the gap in a
spark plug?

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


180

Measurement System Analysis

Reproducibility

Reproducibility will be
present when it is Reproducibility is the variation in the average of the
possible to have more measurements made by different appraisers using the sa me
than one operator or mea suring instrument when measuring the identical
more than one characteristic on the sa me pa rt.
instrument measure the Reproducibility
same part.
Y Operator A
Operator B

For example:
– Manufacturing: Different people perform purity test on samples from
the same vial and get different results.
– Transactional: Different people evaluate the same contract and
make different determinations.

Time Estimate Exercise

Ex ercise objective: Demonstrate how well you can


estimate a 10 second time interval.

1. Pair up
p with an associate.
2. One person will say start and stop to indicate how
long they think the 10 seconds last. Do this 6 times.
3. The other person will have a watch with a second
hand to actually measure the duration of the estimate.
Record the value where your partner can’t see it.
4 Switch tasks with partner and do it 6 times also
4. also.
5. Record all estimates, what do you notice?

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


181

Measurement System Analysis

Accuracy
Accuracy and the
average are related. An accurate measurement is the difference between the observed average of
Recall in the Basic the measurement and a reference value.
Statistics module we – W hen a metric or measurement system consistently over or under estimates the
talked about the Mean value of an attribute, it is said to be “ inaccurate”
and the variance of a Accuracy can be assessed in several ways:
distribution. – Measurement of a known standard
– Comparison with another known measurement method
Think of it this – Prediction of a theoretical value
way….If the W hat happens if we don’t have standards, comparisons or theories?
Measurement System
True
is the distribution then Avera ge
accuracy is the Mean
and the precision is
Accura cy
the variance. W a rning, do not a ssume y our
gy reference is gospel.
m etrology g

M ea surement

Accuracy Against a Known Standard

In transactional processes, the measurement system can consist of a


database query.
– For example, you may be interested in measuring product
returns where you will want to analyze the details of the
returns over some time period.
– The query will provide you all the transaction details

However, before you invest a lot of time analyzing the data, you
must ensure the data has integrity.
– The analysis should include a comparison with known
reference points.
– For the example of product returns, the transaction details
should add up to the same number that appears on financial
reports, such as the income statement.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


182

Measurement System Analysis

Accuracy vs. Precision

ACCURATE PRECISE BO TH

+ =

Accuracy relates to how close the


average of the shots are to the
Master or bull's
bull s-eye.
eye

Precision relates to the spread of


the shots or Variance.
N EITHER

Most Measurement Systems


y are accurate but not at all p
precise.

Bias

Bia s is defined as the deviation of the measured value from the


actual value.

Calibration procedures can minimize and control bias within


acceptable limits. Ideally, Bias can never be eliminated due to
material wear and tear!

Bias Bias

Bias is a component of Accuracy. Constant Bias is when the measurement is off by a constant
value. A scale is a prefect example, if the scale reads 3 lbs when there is no weight on it then there
is a 3lb Bias. Make sense?

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


183

Measurement System Analysis

Stability

Stability just looks


for changes in the Sta bility of a gauge is defined as error (measured in terms of
accuracy or Bias standard deviation) as a function of time. Environmental conditions
over time. such as cleanliness, noise, vibration, lighting, chemical, wear and
tear or other factors usually influence gauge instability. Ideally,
gauges can be maintained to give a high degree of stability but can
never be eliminated unlike reproducibility. Gauge stability studies
would be the first exercise past calibration procedures.
C t l Ch
Control Charts
t are commonly l usedd tto ttrack
k th
the stability
t bilit off a
measurement system over time.
Drift

Sta bility is Bia s cha ra cterized


a s a function of time!

Linearity

Linea rity is defined as the difference in Bias values throughout the


measurement range in which the gauge is intended to be used. This tells you
how accurate your measurements are through the expected range of the
measurements. It answers the question, " Does my gage have the same
accuracy for all sizes of objects being measured?"
measured?

Linearity = | Slope| * Process Variation


Low Nominal High

% Linearity = | Slope| * 100 +e


B i a s (y)

0.00
*
-e
*
*
Reference Value (x)
y = a + b.x
y: Bias, x: Ref. Value
a: Slope, b: Intercept

Linearity just evaluates if any Bias is consistent throughout the measurement range of the
instrument. Many times Linearity indicates a need to replace or maintenance measurement
equipment.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


184

Measurement System Analysis

Types of MSA’s
Variable Data is
always preferred over M SA’s fa ll into tw o ca tegories:
Attribute because it – Attribute
give us more to work – Va ria ble
with.
Attribute Va ria ble
Now we are gong to – Pa ss/ Fa il – Continuous sca le
review Variable MSA – Go/ N o Go – Discrete sca le
testing
testing. – Document Prepa ra tion – Critica l dimensions
– Surfa ce imperfections – Pull strength
– Customer Service – W a rp
Response

Tra nsa ctiona l projects typica lly ha ve a ttribute ba sed


mea surem ent systems.
M a nufa cturing projects genera lly use va ria ble studies more
often, but do use a ttribute studies to a lesser degree.

Variable MSA’s
MSA s
MSA’s use a
MIN ITAB™ calculates a column of variance components (VarComp) which are used to
random effects calculate % Gage R&R using the AN OVA Method.
model meaning
that the levels for
Measured Value True Value
the variance
components are
not fixed or
assigned, they are
assumed to be
random. Estimates for a Gage R&R study are obtained by calculating the variance components
for each term and for error. Repeatability, Operator and Operator* Part components
are summed to obtain a total variability due to the measuring system.
W e use variance components to assess the variation contributed by each source of
measurement error relative to the total variation.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


185

Measurement System Analysis

Session Window Cheat Sheet

Contribution
Contribution ofof variation
variation to
to the
the total
total
variation
variation of
of the
the study.
study.

%
% Contribution,
Contribution, based
based onon variance
variance
components,
components, is is calculated
calculated byby dividing
dividing each
each
value
value in
in VarComp
VarComp by by the
the Total
Total Variation
Variation then
then
multiplying
multiplying the
the result
result by
by 100.
100.

Use
Use %% Study
Study Var
Var when
when you
you are
are interested
interested in
in
comparing
comparing thethe measurement
measurement system
system variation
variation to
to the
the
total variation.
total variation.
%
% Study
Study Var
Var is
is calculated
calculated by
by dividing
dividing each
each value
value in
in
Study
Study Var
Var by
by Total
Total Variation
Variation and
and Multiplying
Multiplying by
by
100
100.
100
100.
Study
Study Var
Var isis calculated
calculated asas 5.15
5.15 times
times the
the Standard
Standard
Deviation
Deviation for
for each
each source.
source.
(5.15
(5.15 is
is used
used because
because when
when data
data are
are normally
normally
distributed,
distributed, 99%
99% ofof the
the data
data fall
fall within
within 5.15
5.15
Standard
Standard Deviations.)
Deviations.)

Refer to this when analyzing your Session Window output.

Session W indow ex pla na tions

WWhen
hen the
the process
process tolerance
tolerance is is entered
entered inin the
the
system,
system, MIN ITABTM
MINITAB TM calculates
calculates % % Tolerance
Tolerance whichwhich
compares
compares measurements
measurements system
system variation
variation to to
customer
customer specification.
specification. This
specification This allows
allows us
us to
to
determine
determine thethe proportion
proportion of of the
the process
process tolerance
tolerance
that
that is
is used
used by
by the
the variation
variation inin the
the measurement
measurement
system.
system.

Always round down to the nearest whole number.

Notice the calculation method explained here for Distinct Categories.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


186

Measurement System Analysis

Number of Distinct Categories

The number of distinct ca tegories tells you how ma ny sepa ra te


groups of pa rts the system is a ble to distinguish.

Una ccepta ble for


estima ting process
pa ra m eters a nd indices
O nly indica tes w hether
the process is producing
conform ingg or
1 Data Category
nonconform ing pa rts

Genera lly una ccepta ble


for estim a ting process
pa ra m eters a nd indices
O nly provides coa rse
2 - 4 Categories
estima tes

R
Recom mended
d d

5 or more Categories

Here is a rule of thumb for distinct categories.

AIAG St
Standards
d d for
f Gage
G Acceptance
A t

Here are the Automotive Industry Action Group’s definitions for


Gage acceptance.
% Tolera nce
or % Contribution System is…
% Study Va ria nce

1 0 % or less 1 % or less Idea l

10% - 20% 1% - 4% Accepta ble

20% - 30% 5% - 9% M a rgina l

3 0 % or grea ter 1 0 % or grea ter Poor

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


187

Measurement System Analysis

MINITABTM Graphic Output Cheat Sheet

Gage name: Sample Study - Caliper


Date of study: 2-10-01
Gage R&R (ANOVA) for Data Reported by: B Wheat
Tolerance:
Misc:

Components of Variation By Part


100
%Contribution 0.630
%Study Var
Percent

%Tolerance
50 0.625

0 0.620
Gage R&R Repeat Reprod Part to Part
Part-to-Part Part 1 2 3 4 5 6 7 8 9 10

R Chart by Operator By Operator


MIN TM
MINITAB
ITABTMbreaks
breaksdown
downthe thevariation
variationininthe
0.010 1 2 3
0.630 the
Sample Range

UCL=0.005936
measurement
measurementsystem systeminto intospecific
specificsources.
sources. Each
Eachcluster
cluster
0.005
ofofbars
bars represents a source of variation. Bydefault,
0.625 represents a source of variation. By default,
R=0.001817
each
each cluster will have two bars, corresponding to
0.000 LCL=0 0.620 cluster will have two bars, corresponding to
0 %Contribution
%Contribution
Operator 1 and
and%StudyVar.
%StudyVar.
2 3 If you add a tolerance
If you add a tolerance
Xbar Chart by Operator and/
and/ ororhistorical sigma,
Operator*Part
historical sigma, bars
Interaction
bars for
for %% Tolerance
Toleranceand/
Operator and/oror
0.632 1 2 3
0.631
UCL=0.6316
%Process
0.631
%Process
0.630 are
areadded.
added.
1
Mean

0.630 2
0.629
age

0.629 3
Sample M

Mean=0 6282
Mean=0.6282 0 628
0.628
Avera

0 628
0.628
0.627
0.626
InInaa good
goodmeasurement
0.627
0.626 measurementsystem,
system,thethelargest
largestcomponent
component
0.625
0.624
LCL=0.6248
ofofvariation
variation is Part-to-Part variation. Ifinstead
0.625
0.624
is Part-to-Part variation. If insteadyou
youhave
have
0
large
largeamounts
Part
amountsofofvariation
1 2 3 4
variationattributed
5 6 7 8
attributedtotoGage
9 10
GageR&R,
R&R,then
then
corrective
correctiveaction
actionisisneeded.
needed.

Gage name: Sample Study - Caliper


Date of study: 2-10-01
Gage R&R (ANOVA) for Data Reported by: B Wheat
Tolerance:
Misc:

Components of Variation By Part


100 %Contribution 0.630
%Study Var
nt

%Tolerance
Percen

50 0.625

0.620
0
MIN ITABTMTMprovides an R Chart and Xbar Chart by Operator.
Gage R&R Repeat Reprod Part-to-Part MIN ITAB
Part 1 2 provides
3 4 5 an 6 R7 Chart
8 9 and
10 Xbar Chart by Operator.
The
TheRRchart
chartconsists
consistsofofthe
thefollowing:
following:
R Chart by Operator By Operator
0.010 1 2 3
- The plotted points are the difference between the largest
0.630
- The plotted points are the difference between the largest
Sample Range

UCL=0.005936 and
andsmallest
smallestmeasurements
measurementson oneach
eachpart
partfor
foreach
eachoperator.
operator.
0.005
If the measurements are the same then the range = 0.
0.625
If the measurements are the same then the range = 0.
R=0.001817 - The Center Line, is the grand average for the process.
- The Center Line, is the grand average for the process.
0.000 LCL=0 - -The
0.620 TheControl
ControlLimits
Limitsrepresent
representthetheamount
amountofofvariation
variation
0 expected
Operator 1 for the subgroup
2 ranges
ranges. 3These limits are calculated
expected for the subgroup ranges. These limits are calculated
Xbar Chart by Operator using the variation within subgroups.
using the Operator*Part Interaction
variation within subgroups. Operator
0.632 1 2 3
UCL=0.6316 0.631 1
0.631
If any of the points on the graph go above 2the upper Control
0.630
Sample Mean

0.630 If any of the points on the graph go above3 the upper Control
0.629
Average

0.629 Limit (UCL), then that operator is having problems consistently


0.628 Mean=0.6282 Limit (UCL), then that operator is having problems consistently
0.628
0.627 measuring
measuringparts.
0.627
parts. The
TheUpper
UpperControl
ControlLimit
Limitvalue
valuetakes
takesinto
into
0.626 0.626
0.625 LCL=0.6248 account
accountthe
0.625 thenumber
numberofofmeasurements
measurementsby byananoperator
operatoron onaa
0.624
part and the variability between parts. If the operators are
0.624
0 part and
Part 1 2the3 variability
4 5 6 between
7 8 9 parts.
10 If the operators are
measuring
measuringconsistently,
consistently,then
thenthese
theseranges
rangesshould
shouldbe besmall
small
relative
relativetotothethedata
dataandandthe
thepoints
pointsshould
shouldstay
stayinincontrol.
control.

Certified Lean Six Sigma Black Belt Book Copyright OpenSourceSixSigma.com


188

Measurement System Analysis

MINITABTM Graphic Output Cheat Sheet (cont.)

Gage name: Sample Study - Caliper


Date of study: 2-10-01
Gage R&R (ANOVA) for Data Reported by: B Wheat
Tolerance:
Misc:

Components of Variation By Part


100
%Contribution 0.630
%Study Var
Percent

%Tolerance
50 MIN ITABTMTMprovides an R Chart and Xbar Chart by Operator.
MIN ITAB provides an R Chart and Xbar Chart by Operator.
0.625
The Xbar Chart compares the part-to-part variation to
The Xbar Chart compares the part-to-part variation to
repeatability.
repeatability. The
0.620 TheXbar
Xbarchart