Six Sigma DMAIC Training

(excerpts)

Presenter: Bruce Berger (386) 852-9054 BergerConsulting@aol.com

Six Sigma Overview

Why do we need Six Sigma?
Six Sigma is a proven methodology that will help us
improve our work in order to consistently ensure

Our products and services meet (or exceed)

customers needs
Our Processes are cost-effective

DBS employees are well-trained and motivated

State and federal statutory requirements are met

Six Sigma Overview

What is Six Sigma?

A philosophy for systematically improving quality,

and therefore efficiency.

A standard of performance equal to 3.4 defects
per million outputs (i.e. near perfection).
Most operations are about 2.8 sigma (100,000
defects / million).
Very good operations are about 4 sigma (3,500
defects / million).

Six Sigma Overview

Six Sigma is all about
1) Providing Customer Satisfaction through the total
involvement of ALL employees

Customer Satisfaction

2)Or put another way

Making Line Graphs move in the direction you
want them to go.
GOOD

Target

Year

Line Graphs Help Us Understand Our Performance

Six Sigma Overview

We know were Successful when
GOOD

% Customer
Satisfaction

Our customers tell us

that they are pleased
with our services.

% Customer Satisfaction
95%

92%

96%

95%

Target = 80%

Q3 04

Q4 04

Q1 05

Q2 05

Our Services are Delivered On-Time.

Our costs for doing business are the lowest possible.
Our Employees are efficient.

Six Sigma Overview

Moving line graphs requires efforts in three (3) areas

Process Management
helps us maintain
good results as we
perform our
Mission.

Strategic planning helps us

focus on key projects
to reach our Vision.
Strategic
Planning

Six Sigma

Process
Management

Process
Improvement

Process
Improvement
using the DMAIC
process helps us
fix work problems
and improve our
Performance.

To be successful as an organization, we must learn how to

effectively apply ALL three (3) areas.
Todays training will overview the DMAIC process.

DMAIC 5 Steps
1. Define

2. Measure

Display Problem ...

Stratify Problem ...

Line Graph

Histogram

Pareto

n=63
Standard

GOOD

OUTCOME

WHO

WHEN

WHERE

Checksheet
or Spreadsheet

WHAT

DMAIC Overview
Process
Improvement
utilizes a 5 step
problem solving
DMAIC process:

Target

n=21

GAP

21 Late

Month

PROBLEM STATEMENT

3. Analyze

CASE
1

A
B
C

Ef
fec

us

Problem

A
Present
A
Absent

No
Problem

35

PROBLEM
STATEMENT
E
F
F
E
C
T

ROOT
CAUSE
A

ACTN?

2) Measure

Ca

OVRL

REASON/
FACTOR

FISHBONE

Identify & Implement Countermeasures ...

Countermeasures Matrix
EFF

Identify & Verify Root Cause ...

Single Case Bore
Contingency Table

FEAS

1) Define

4. Improve

A2

16

C1

20

C2

CM
A1

25

Scatter Diagram
Effect

3) Analyze

Action Plan

High

BARRIERS

AIDS

A1a

A1b

HOW

WHO

WHEN

1. Dev
2. Impl

Cause "C"

5. Control
Standardization

4. Results
Improve

4) Improve

GOOD

CM IMPL'M

Future Plans
LESSONS LEARNED

CONTROL CHARTS
%

5) Control

FLOW CHART

Target

Before

WHAT'S NEXT?

After

n=21
Effect

Overall

n=10

DMAIC Overview Step 1: Define

The objective of step 1 is to Demonstrate the importance
of improvement needs in measurable terms.
1.Define
Display Problem ...
Line Graph
GOOD

OUTCOME

WHO

WHEN

WHERE

WHAT

Checksheet
or Spreadsheet

Target
GAP

Month

Lets look more closely at the two important tools used in Define.
Define

Measure

Analyze

Improve Control

Step 1: Define - Spreadsheet Tool

Line #

Process Status Summary

WHAT

DEMOGRAPHICS
WHERE WHEN WHO

MILESTONES DURATION

OUTCOME

1
2

MS Excel is used to construct unique spreadsheets to record

data for analysis

Spreadsheets segment information into four key sections:
Demographics (contain who, what, where or when--information about the

process)
Milestone Dates (key completion dates/times of steps in the process)
Durations (Performance Results calculated from the milestone dates
automatically)
Outcomes (Performance results of the process)

Data collection can be either manual or downloaded from

existing systems
Can be used for ongoing monitoring of process performance
after the project is completed

Step 1: Define - Line Graph Tool

% Customer
Satisfaction

GOOD

95%

92%

96%

95%

Gap
Target = 80%

Q3 04

Q4 04

Q1 05

Q2 05

Used to display performance trends

Relates performance to a target that is established by either

customers or the business

Displays the Gap between the observed performance and the
target

DMAIC Overview Step 2: Measure

The objective of step 2 is to Investigate the features of
the indicator, stratify the problem and set a target for
improvement.
2. Measure
Stratify Problem ...
Histogram

Pareto

n=63
Standard

n=21

21 Late

PROBLEM STATEMENT

Lets look more closely at two important tools used

in Step 2: Measure

Step 2: Measure Histogram Tool

Customer Service Document Requests Between Week 31 and Week 38 that Were Delivered
Late
120

_
x

USL=0.5 hours

100

n = 162 (2 outilers of 79 and 64 hours not shown)

mean = 7.139
std dev = 8.538

96

# of Requests

80

60

40

20

14

14

10

8
1

0
-1.55

0.55

2.65

4.75

1
6.85

1
8.95

7
4

1
11.05

13.15

15.25

17.35

19.45

1
21.55

23.65

25.75

27.85

# of hours to deliver request

MS Excel and QC Tools software used to construct graph

Fits data into a frequency distribution
Can show upper and lower specification limits and denote data that

falls outside those limits (the area on which the story should focus)
Used for data breakdowns by hours, minutes, dollars, etc.

29.95

Step 2: Measure Pareto Tool

Customer Service Requests Between Week 31 and Week 38 that Were Delivered Late
99.2%

97.2%

100

94.4%

n = 251

90.8%
90

86.1%

162

# of Requests

80

76.1%

200

70

64.5%

60

150

50

% of Total

250

40

100

30

20

50
29

25
10

12

START

QUESTION

RS, DOCS

0
DOCS

LLR

RS

NFL

O&E

Request Type

MS Excel and QC Tools software used to construct graphs

Tool used to rank data by groups from the group that contains the most

data points to the group that contains the fewest data points.
Look for a large bar or young mountain

Team Operations and Group Dynamics

The following are a few dynamics that all teams need
to be successful

P-A-L (Purpose Agenda Limit)

Parking Lot

Recognition
4 Stages of Team Growth

Consensus and Brainstorming

Rules of Conduct

P-A-L
Why Are Effective Meetings Important?
Because organizations spend 7.15% of their personnel budgets,
35% of middle management's time, and 60% of top
management's time in meetings.
What Is An Effective Meeting?

An effective meeting is a meeting:

which is necessary.
which includes all individuals required to accomplish the
intended PURPOSE.
which covers the AGENDA*.
where people know what is expected of them.

P-A-L (Cont.)
What Is An Effective Meeting? (Cont.)
An effective meeting is a meeting:
where the real issues are on the table and being dealt with
and where most hidden agendas are legitimized and
surfaced for discussion.
where decisions and commitments are made, plans are
developed, problems are solved.
where people leave knowing what was accomplished and
what they are to do.
which meets its intended PURPOSE*.
which respects people by starting and ending on time
(LIMIT*).

P-A-L (Cont.)
When Are Meetings Needed?
Meetings are useful:
for group problem solving.
for sharing information or advice.
for building commitment to a common goal.
for addressing problems or issues that involve a number
of people.
for planning.
for defining accountability and responsibility.
for group decision-making.

P-A-L (Cont.)
How Are They Created?
Send a draft of the agenda. The person calling the
meeting should send out information on the agenda so
that the purpose, time frames and topics are clear before
people come to the meeting.
Start the meeting on time.
Revise and agree on an agenda. Add agenda items

suggested by others attending the meeting, as appropriate.

Finalize and agree on the agenda.
Agree on ground rules.

P-A-L (Cont.)
How Are They Created? (Cont.)
Encourage active participation from all members.
Choose a process facilitator. To ensure an effective

meeting, someone needs to take responsibility for

managing the process portion of the meeting.
Focus the discussion. Clarify and summarize as

necessary to facilitate mutual understanding of

perspectives and ideas.
Decide how to decide. Determine how decisions will be

made in the meeting - by consensus, by multi-voting, by

majority voting, or by the team leader.

P-A-L (Cont.)
How Are They Created? (Cont.)
Address all items raised. Insure that all items raised are

addressed by the end of the meeting and that the person

who raised the item knows what the next step will be,
specifically.
Check with the person who raised the issue to ensure they

know what needs to happen next to get the issue

addressed and that the proposed plan meets their needs.

Parking Lot
Parking Lot is a strategy for recording and postponing
items raised during a meeting. Create a side list of items
to be addressed later. Before the meeting adjourns, review
ALL "parked" items and decide:
whether this group will address the item or refer it

elsewhere, and if the item will be addressed by the

group, decide when and how it will be addressed - (e.g.,
agenda next meeting, assign).
communicate decisions to the person who raised the

item.

Parking Lot (Cont.)

Summarize results, agreements, and next steps.

Acknowledge agreements. At the close of the meeting

review the decisions and agreements and other
accomplishments that happened in the meeting, and
review the next steps. WRITE IT ALL DOWN!
Acknowledging and celebrating what was accomplished
at a successful meeting gives people a sense of progress,
and rewards them for the time and effort the meeting
required. It also encourages them to work to make the
next meeting productive.
End the meeting on time.

Recognition
The purpose of recognition is to formally
acknowledge the accomplishments of teams or team
related activities.
Two major forces help drive Quality Improvement. These
are:

Personal satisfaction from participation in the process and

the knowledge that you can make constructive changes in
your work environment, which help meet the needs of the
customer.
External recognition, which honors those who contribute
to quality improvement.

Recognition (Cont.)

Recognition is meant to be a "Win-Win"

situation, but it is often difficult to implement
in a way that everyone perceives it as such.
Teams should recognize that successful longterm recognition is most applicable on a local
level. Peer recognition and recognition by
your local management have a more direct,
lasting impact.

Team Growth
When small groups of people come together for the first time or when
other events occur, these groups are said to be in transition and will
undergo some predictable phases of team change or growth. A
corresponding change in individual comfort levels brings tension
and a sense of uneasiness to the whole team.
The net result is usually some form of undesired or dysfunctional team
behaviors. An awareness of these stages of group development and
their related behaviors is important, especially for people leading
teams in transition. The transition can be triggered by numerous
events, including:
A small group coming together for the first time
Changing team leaders on an existing team
Member turnover
An unexpected surprise visitor sits in with the team

Team Growth (Cont.)

FORM

STORM

NORM

PERFORM

Stage I: Form: This is where the group comes together either

for the first time or after being apart for long periods.
Stage II: Storm: This phase is characterized by intra-team

conflict as members become more familiar and more

comfortable with the team environment. They take more risks,
and often begin to become competitive with each other.

Team Growth (Cont.)

FORM

STORM

NORM

PERFORM

Stage III: Norm: This phase is typified by the development

of team cohesion. After all the conflict of phase II, the

members begin to recognize and accept the team norms, their
roles and the pecking order established in stage II. The
personal "quirks" of other members also become accepted, or
at least better tolerated and torn relationships get patched back
up.
Stage IV: Perform: This is when the team really begins to
operate smoothly like a well-oiled machine. Members now
know one another well; they freely depend on each other for
support and can thus focus on solving the problem and
objective decision-making instead of each other.

Team Growth (Cont.)

What Does This Mean To You?
Because the Form, Storm and Norm stages of group
development result in less than optimum output, teams often try
and push through these phases before their chemistry is ready to
move on in order to improve team productivity.
This might seem like a good idea, but it is really dysfunctional.
It is natural for people to go through predictable phases of

growth depending on maturity, experience, and other factors. It

is natural for teams to do so too. They must go through these
predictable phases as they mature and gain experience with each
other and the DMAIC Story.

Team Growth (Cont.)

What Does This Mean To You? (Cont.)
The duration of each phase depends on individual and team maturity,
task complexity, leadership, and the sponsor's support.
While it is natural that teams go through these stages some teams can

get stuck in different stages. Given that the stages are unavoidable, an
idea to consider to help reduce the time needed for a "team in
transition" to go through the stages and be fully productive, is to share
expectations about the group and its preferences and direction.
Specifically, the team can establish (as part of their rules of team

conduct) for example, there will be no "surprises". This can help

establish an atmosphere of trust earlier in the evolutionary process
allowing for some interpersonal issues to be put aside so people can
focus on team objectives.

Team Growth (Cont.)

FORM

INDIVIDUAL ISSUES

LEADERSHIP
STRATEGIES

NORM OR PERFORM

What am I doing?
Who are these people?
Who is in charge?

How effective am I?
How much influence do I have?

I know how I belong

I know what I contribute

What is the charter?

Is this the right group?
Is this the right structure?

How do we work together?

What is each member responsible
for?
What should we be working on?

What changes might increase our

effectiveness?
Give and take
Celebration when it is earned

Testing boundaries
Establishing rules
Caution
Politeness
Superficiality
Dependency/
Counter Dependency

Focus on methods
Conflict/tension
Cop out (quick agreement and
silence)
Polarization
Resistance
Win-Lose

Increased comfort
Role shifting
Little need to discuss methods
Identification with the group
Shared power and information
Fun

Break the ice!

Get involved and participation

Elicit examination of differences

Model and support influential, not
aggressive communication

Provide positive and critical

feedback
Create celebration

GROUP ISSUES

WHAT YOU WILL

SEE

STORM

Consensus and Brainstorming

Consensus is a group decision-making process that takes

each member's ideas and opinions into account and results in

a decision that everyone in the group can support. It is an
effective method for decision-making because it involves
every member's participation. Consensus improves decision
quality, equalizes power, causes examination of alternatives,
increases commitment to implement the decision and
promotes unity among the team members.
Brainstorming is a method used by a group of people to

produce a large number of creative ideas in a relatively short

period of time.

Consensus (Cont.)
How To Reach Consensus:
The leader clearly lists the alternatives the group has to choose from

and opens the topic for discussion.

Each member of the group shares her/his ideas opinions and known

facts about what each feels the group's decision should be.
When the leader feels that the team is beginning to come to a

common agreement, he/she will clarify the position and ask the team
if there is a consensus. If everyone agrees that it is the best decision,
or feels that it is a decision that they can support, they state their
agreement and the leader confirms the decision. If a member has
new information or clarification of previous information that may be
helpful to the team, time is spent discussing the concern and the
process continues until consensus is achieved.

Consensus (Cont.)
THE GOALS OF CONSENSUS
Eliminate a we-they feeling.
Focus on the problem, not on personalities, position, or points of view.
Reach a win-win decision.
Develop team ownership to the decision.

Key Guidelines For Decision Making By Consensus:

Avoid arguing based on opinion. Strive to focus on facts and objectivity.

Don't change your mind to avoid conflict. Change it based on facts and
objectivity. Look at differences among the group as positive ways to make
change. Coach each other to be honest, open and data based as much as
possible.
The following is an exercise to practice the decision-making technique of

consensus in a group setting. Pay special attention to member

involvement, as this will drive your success.

Brainstorming
Brainstorming is an effective technique because of two main
principles:
1.

Delayed Judgment - People are able to produce more

ideas when they delay evaluation of ideas until a later
time.

1.

Extended Effort - More original and useful ideas are

created when the group continues to generate ideas
beyond the initial, more obvious responses by filling an
agreed upon time limit or an agreed upon number of
ideas. The emphasis in the Generation Phase of a
brainstorming session is always on the "quantity" of ideas
not the "quality." The quality will come later when ideas
are clarified and evaluated.

Brainstorming (Cont.)
How To Brainstorm:

The leader selects the method of brainstorming that will be used

and informs the team. It will usually be one of two popular types:

Structured or Round Robin

Unstructured Open Forum or Green Lighting

The leader clearly states the topic and purpose of the brainstorming
session. Everyone agrees on the topic or issue. The topic is then
written and placed in a prominent, visible position.

A recorder is selected to record all ideas on a flipchart or

viewgraph transparency for all to see. Always having the words
visible to everyone at the same time avoids misunderstandings and
helps to inspire other new ideas.

Brainstorming (Cont.)
How To Brainstorm (Cont.):

The leader reviews the following "Rules for Brainstorming" with

the group:

No discussion, comments or evaluation of any idea during the

generation phase.
All ideas will be recorded.
Quantity not quality is important during the generation phase.
State ideas briefly and clearly.
Build on recorded ideas.

Generation Phase- Begin the brainstorming session by posting

ideas on the flip chart. Make sure all ideas remain visible to the
team. Continue until the agreed upon time is used or the agreed
upon number of ideas are generated.

Brainstorming (Cont.)
How To Brainstorm (Cont.):

Clarification Phase- During the Clarification Phase of

Brainstorming, the team goes over the list to make sure that
everyone understands all of the items. Do not discuss ideas.
Criticism and discussion will take place during the
Evaluation Phase and in Multi-voting.

Evaluation Phase- Finally, during the Evaluation Phase, the

team reviews the list to eliminate duplications, irrelevancies
and issues that are off limits or cannot possibly be addressed
or acted upon by this team.

Rules of Conduct
Rules of Conduct:
One practical way to reinforce the principle of Respect
People is to establish and follow Rules of Conduct during
meetings. Your team can either adopt the Rules of
Conduct, shown below, or modify them to best suit your
team's needs.

Rules Of Conduct
Constructively criticize
Respect others
ideas, not people
Keep an open mind
Question and participate
Listen without interrupting
Attend all meetings
Share the load
Follow the P.A.L.

Rules of Conduct (Cont.)

With the ground rules established, the team can

begin the continuous improvement cycle, P-D-C-A,
but meetings must be effectively managed to ensure
progress and success.
Rules Of Conduct

Constructively criticize
Respect others
ideas, not people
Keep an open mind
Question and participate
Listen without interrupting
Attend all meetings
Share the load
Follow the P.A.L.

How to Construct Line Graph Outcome Indicators

1.

Draw and label each axis. Label the horizontal axis with the frequency of
measurement (i.e., hour, day, week, month, etc., or by occurrence). Label
the vertical axis with the indicator to be displayed. Construct appropriate
measurement scales on each axis.
Title the line graph with full Indicator Description including Location
and Time Period.

2.

Q3 % of Product Orders Delivered On-Time

2006

%=

# of Product Order Delivered On-Time

X 100

# of Total Orders Delivered

GOOD

Target = 90%
100%

75%

60.7%

61.1%
57.1%

50%
26.4%

Average = 49.8%

25%

9/8/06

9/15/06

9/22/06

Week Ending

9/29/06
Source: XYZ Data Base
Bruce Berger 2/09/07

Construct Line Graph Outcome Indicators (Cont.)

3.
4.
5.

Show indicator formula if the indicator results from a calculation.

Draw a good arrow and target. The target is displayed as a dashed line.
Fill in the source block and include source of the data, who collected the
data and the time period that data was collected from the source.

Data Collection Spreadsheet

Process Status Summary
Line #

DEMOGRAPHICS
WHAT WHERE WHEN WHO

MILESTONES DURATION

OUTCOME

1
2

MS Excel is used to construct unique spreadsheets to record data for

analysis
Spreadsheets segment information into four key sections:

Demographics (contain who, what, where or when--information about the process)

Milestone Dates (key completion dates/times of steps in the process)
Durations (Performance Results calculated from the milestone dates automatically)
Outcomes (Performance results of the process)

Data collection can be either manual or downloaded from existing

systems
Can be used for ongoing monitoring of process performance after the
project is completed

The ParetoBackground
How the Pareto Diagram was Born

1897 . . .

Italian Economist, Vilfredo Pareto, presented

a formula showing that the distribution of income is
uneven (i.e., the largest share of the world's income is
held by small number of people).
1907 . . . U.S. Economist, M. C. Lorenz, expressed a
similar theory in a diagram.
Later . . . Quality Control expert, Dr. J. M. Juran,
applied Lorenz's diagram method to classify problems of
quality into "vital

The ParetoBackground
What is a Pareto Diagram?

The Pareto is a graphical tool used to rank datasets

within a data group. It helps us distinguish between the

significant few and the trivial many datasets. It is
primarily used to identify the most serious or most
frequently occurring dataset(s) and is based on the
concept that 80% of the data group problems (or, at least
a large percentage) result from 20% of the datasets.
Pareto diagrams are to be constructed for only discrete
(or countable or attribute) data.

The ParetoConstruction
1. Draw a box.
2. Display the number of items in the upper left corner as shown below (n=101).
3. Title the PARETO by describing the data that is being stratified.

(Hint: answer the Question, What is n?(i.e What are the 101?)
4. Label three (3) sides of the box as follows:

1. Left side: Number of __________ Construct a measurement scale on the left side starting

with zero at the bottom and the n (e.g., 101) value at the top. Add additional appropriate
scale values on the left side.
2. Bottom side: Label with the name of the What, Where, When or Who data group to be
displayed (e.g., County). Draw each bar at the appropriate height descending from the left
starting with the biggest bar. Label each bar and display bar height values above each bar.
3. Right side: Label this side Cumulative Percentage and display measurement grids at 0%,
25%, 50%, 75% and 100%.
4. Construct a Cumulative Percentage line: Line starts in lower left corner at zero and
connects labeled data points plotted at or directly above the upper right corner of each bar
and at a height equal to the cumulative percentage, calculated as follows: % = (bar heights of
all bars to left data point) (the total n) * 100 (e.g., (76+20) (101) * 100 = 96%).
5. Add a source box.

The Pareto Example

Customer Service Requests Between Week 31 and Week 38 that Were Delivered Late
99.2%

97.2%

100

94.4%

n = 251

90.8%
90

86.1%

162
# of Requests

80

76.1%

200

70

64.5%

60

150

50

40

100

30

20

50
29

25
10

12

0
DOCS

LLR

RS

NFL

O&E

Request Type

START

QUESTION

RS, DOCS

% of Total

250