4. an overview of the dmaic process at work (220 k ppt)

© Max Zornada (2005) Slide 1

An Overview of the DMAIC Process An Overview of the DMAIC Process at Workat Work

The Team Based Problem Solving Process


Types of TeamsTypes of Teams

Quality Circles Six Sigma Teams Quality Improvement Process Improvement Teams Problem Solving Teams Task Forces Project Teams Cross-functional Teams

Issues specificLocalisedPermanent membership

Issues specific Forming & reformingTemporary membership


Problem SolvingProblem Solving

"If the only tool you have is a hammer, you tend to see every problem as a nail"

Abraham Maslow (1908-1970)

The DMAIC Team Based Problem Solving Process uses a suite of tools, applied within a structured

framework to support the problem solving process using teams.


The Quality Problem Solving ToolsThe Quality Problem Solving Tools

Ishikawa's 7 Tools of Quality Flowcharts Fishbone diagrams Pareto charts Histograms Run charts and graphs Control charts Scatter diagrams

Other commonly used tools: Brainstorming Multi-voting Check sheets Dot plots Box plots


Types of Problem SolvingTypes of Problem Solving

Issues driven problem solving, where the focus is on solving a specific, clearly identifiable and obvious problem (or symptom). This is usually the case during the first few years of implementing a team based problem solving process where many long standing problems have been flushed out into the open;

Process Improvement driven problem solving, where the process improvement process provides the impetus to analyse the way things are done and seek out problems to be solved.


The Six Sigma ApproachThe Six Sigma ApproachDMAICDMAIC

Define the problem or opportunity.

Measure the current performance and capability

Analyse to identify root causes.

Improve by implementing potential

solutions.

Control by standardising solution and monitoring

performance. Define

Measure

Analyse

Improve

Control

6


DMAIC Process StoryboardDMAIC Process StoryboardTEAM FORMATION DEFINE MEASURE

ANALYSE IMPROVE - I : Generate Potential Solutions

CONTROL - Standardise FUTURE PLANS

Define, Measure, Analyse, Improve, Control

Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity.

Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis

Objective: Identify and verify the root cause(s) of the problem.

Output: Root cause(s) identified.

Cause and Effect Diagram(Fishbone)

Pareto Chart

Checksheet

Objective: Determine possible solutions that will address the identified root cause(s) of the problem.

Action Plan

Step 1Step 2Step 3Step 4Step 5Step 6

Output: Preferred solution or countermeasures

Key Steps:-

•Generate potential solutions•Assess potential solutions•Select preferred solution•Test/Pilot preferred solution•Develop implementation plan

Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated.

Before

After

Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented.

Key steps:-•Implement preferred solution•Verify effectiveness•Apply comparative methods if necessary.

Objective: Prevent the problem and its root cause from recurring.

Flowchart Standard procedure

Output: Solution embedded and “routinised” in relevant process, procedures and standards.

Key steps:-•Standardise the solution (standards & procedures)•Document project•Implement scorecard•Implement controls

Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning.

Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack”

Potential Solutions

D

MA

C

I

IMPROVE - II: Implement and Check

Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process.

Output: A quantified picture of the current process performance, problem impact. The process sigma rating.

Objective: Select problem/ opportunity theme, select team members

Output: Problem/Opportunity selected, Team members selected.

•Develop business case•Develop project team charter•Understand Customer Requirements•Understand the Process.

•Determine what to measure•Understand the measures•Understand Variation•Assess measurement system•Assess process performance

Problem Solving Team

Key Steps:-Key Steps:-

FlowchartTeam charter Cause and Effect Diagram Run chart or

control chart

•Analyse data•Analyse process•Determine potential root causes•Hypothesis Testing•Verify root causes

Key Steps:-

Key Steps:-•Review remaining project opportunities•Review other applications•Review learnings


South Eastern Food PackagersSouth Eastern Food Packagers

Team Based Problem Solving

Case Study











Pareto Chart

Checksheet


Action Plan



Key Steps:-



Before

After









Potential Solutions

D

MA

C

I











control chart


Key Steps:-



Develop a Problem/Opportunity Theme Develop a Problem/Opportunity Theme StatementStatement

The problem/opportunity theme statement provides the initial definition of the problem/opportunity area to be pursued;

It is on the basis of the problem/opportunity theme statement that management decide to allocate resources (the problem solving team) and time to develop a project team charter and determine whether the problem/opportunity is worth pursuing.


Problem/Opportunity Theme StatementProblem/Opportunity Theme Statement

What is the area of concern? What first brought this problem or opportunity to the attention of your business?

What impact has this problem already had? What evidence is there that it is a problem worthy of attention?

What will happen if the business does not address this problem?

Summary problem statement (summarise the above in a concise statement).

Project Title: Cost of Waste Reduction Project

The cost of waste in the box packaging operations. Now that we are packaging to fulfil 3rd party contracts, we are having to absorb the cost of waste in order to be cost competitive on price.

The impact of this problem is that 3rd party box packaging operations runs at a loss. Actual costs/box are 44c above recovery rate. This is $1.44 above target.

The remainder of the business will have to continue to cross-subsidise the loss making box packaging operation or box packaging will have to be shutdown.

The cost of waste in box packaging is excessive and causes box packaging operations to run at a loss. The cost of waste needs to be reduced to achieve target cost levels.











Pareto Chart

Checksheet


Action Plan



Key Steps:-



Before

After









Potential Solutions

D

MA

C

I











control chart


Key Steps:-



The Define StageThe Define Stage During the Define Stage, we:

Define our problem or opportunity and improvement objectives; Define the customers and their requirements - the Critical-to-Quality issues (CTQ); Define the process that will be affected; Develop a plan for completing the project;

Key outputs of the Define Stage: Team Project Charter and Work Plan Measurable Customer Requirements - Customer Requirements Statement Process Map/Process Analysis.


Process

Green Belt

Champion

Start Date

Expected Financial Impact

Telephone Number

Organization/Function

Target Completion Date

Six Sigma Project Team CharterProject Title

Objective

Problem/Opportunity Definition

What is the Problem to be solved or the opportunity this project will exploit.

Business Case

Team Members

Project Scope

Customer Benefit

Improvement target, impact on Sigma, COQ/COPQ and Customer Satisfaction

Schedule

What improvement in business performance is expected. $ impact and by when.

Who are the team members and key experts to be consulted.

Which part of the process will be investigated

Who are the final customers. What benefits will they see and what are their most critical requirements.

What are key milestone dates for completion of each stage.

Define completion

Measure completion

Analyse completion

Improve completion

Control completion

Project Completion

Cost of Waste Reduction Project

Jane VerdeJohn Briggs

1-April

Reduce net spoilage rate by 50% from 6% to 3%. Estimated Sigma level improvement from 3 to 3.4

Reduction in cost of waste of $253,000 p.a. from a baseline of $506,000. Will result in target processing cost/box being achieved.

634-5789Packaging Operations1- October

$253,000Box Packaging

Jane Verde (Team Leader), Paul Black, Rachel Cintura, Roland Thompson, Sdravo Krysevic, Giovanni Nero (Black Belt) Box packaging from start of box filling through to placement of product on buyer shelves.

The packaging contractees for whom we package and deliver product to buyers such as supermarkets and wholesalers. Benefits: competitive costs and more accurate schedule compliance.

20-April1-June1-August1-September15-September1-October

The cost of waste in box packaging is excessive and causes box packaging operations to run at a loss. The cost of waste needs to be reduced to achieve target cost levels.


Example: SEFP’s Customer Requirements StatementExample: SEFP’s Customer Requirements Statement

What is this customer’s major complaint? What issue would they want us to work on?

Outputs: Customer:

Customer Requirements Measure Importance to Customer

Customer Satisfaction

PriorityRating

1. Cost competitiveness

Boxed product delivered to buyers according to customer manifest.Contract Box Packaging Customers

(Importance x Satisfaction)

Target

2. Schedule compliance

2.1. On-time delivery/right day/right time.

2.2. Right product delivered

2.3. Product quality to specification

2.4. Right amount/ amount as per manifest.

Processing cost $/Box

% On timeReturns: wrong product %

Returns: off-spec product %Order shortfall %

Ranking SchemeImportance to customer: 1 = Nice to Have, 2 = Important, 3 = Critical, Must HaveCustomer Satisfaction: 1 = Very Satisfied, 2 = OK. Could be better, 3 = Unhappy, Must be improved

$22.50

97%

95%

99%

99%

3 3* 9*

2 1 2

2 1 2

3 2 6

3 3 9

*Note: customer has not complained about price because we are absorbing difference between market price and actual costs. If customer were charged actual cost we would lose the business.In addition to price, getting the delivery amount right is a Critical-to-Quality issue for the customer.


Process Mapping SymbolsProcess Mapping SymbolsSymbol Name Brief Definition

Operation orprocess step

Decision Point

DocumentGenerated

ContinuationPoint

Input/OutputBlock

Flow lines

Depending on the level of detail being developed, can be used to denote anything from a simple task, major activity or a whole sub-processes.

Used to indicate the process is continued elsewhere on the flow diagram or on another sheet.

Point at which a form or report is generated by the process.

Point where a decision must be made before any further action can be taken.

Optionally used to describe an input or output from a processing block.

Use to connect all blocks to display the sequence in which operations are performed.

Termination point

Used to indicate the start and end of a process.


Start

Load flat into Flat Feeder

Box Folding

Box Jam?

Box Filling

Underweight?

Overweight?

Lid sealing and close

Printing Bar Code & Date

Stack and Wrap

Truck Loading and Shipping

Customer Unload & Check

Remove Excess

Remove & Recycle

Stop and Clear

Restart the Process

Pallet OK?

Unpack & receive boxes

Boxes OK?

Place on shelf in Warehouse

Unpack Box when required

Contents OK?

Yes

Yes

Yes

Yes

Place on shelf for sale

End

Return to SEFP

Return to SEFP

Return to SEFPYes

Yes

No

No

No

No

No

No

SEFP’s Box Packing & Fulfilment ProcessSEFP’s Box Packing & Fulfilment ProcessProcess MapProcess Map











Pareto Chart

Checksheet


Action Plan



Key Steps:-



Before

After









Potential Solutions

D

MA

C

I











control chart


Key Steps:-



Start

Load flat into Flat Feeder

Box Folding

Box Jam?

Box Filling

Underweight?

Overweight?

Lid sealing and close

Printing Bar Code & Date

Stack and Wrap

Truck Loading and Shipping

Customer Unload & Check

Remove Excess

Remove & Recycle

Stop and Clear

Restart the Process

Pallet OK?

Unpack & receive boxes

Boxes OK?

Place on shelf in Warehouse

Unpack Box when required

Contents OK?

Yes

Yes

Yes

Yes

Place on shelf for sale

End

Return to SEFP

Return to SEFP

Return to SEFPYes

Yes

No

No

No

No

No

No

SEFP’s Box Packing & Fulfilment ProcessSEFP’s Box Packing & Fulfilment ProcessDetermining What to MeasureDetermining What to Measure


Identifying Measures using a CTQ TreeIdentifying Measures using a CTQ TreeY = f(x)Y = f(x)

Box Packaging Cost of Waste

Underweight Boxes

Returned Pallets

Returned Boxes

Box Jams in Process

The Outcome Measure (Y)

Brainstorm things that could affect the outcome. Refer previous analysis.

Identify measures for each of the things that can affect the outcome (the x’s)

Packed Boxes

Unpacked Boxes

Number & %

Number & %

Number & %

Number & %

Number & %











Pareto Chart

Checksheet


Action Plan



Key Steps:-



Before

After









Potential Solutions

D

MA

C

I











control chart


Key Steps:-



The Anatomy of a Check SheetThe Anatomy of a Check SheetExample: Lost Time Injury Data for a Security FirmExample: Lost Time Injury Data for a Security Firm

Category Tally Frequency

Total

Allergy

Broken limb

Back/Neck

Concussion

Contusion

Heart Attack

Sprains

Other

1

2

3

4

5

6

7

8

8

12

6

14

7

1

23

3

78

The categories in which the data

occurs

Progressive “Tally” count of each occurrence, collected from raw data or directly from the fieldNote: = 1, = 5

Numerical frequency count or summary of

the “tally” or occurrences in each

category

Overall Total


The Pareto PrincipleThe Pareto Principle(Also know as the 80/20 Rule): (Also know as the 80/20 Rule):

“A few causes account for most of the effect”“A few causes account for most of the effect”

Causes Effect

20% of the causes account for 80% of

the effect!

Critical Few

Trivial Many


Pareto AnalysisPareto Analysis Example: Pareto Analysis for SEFP Numbers of BoxesExample: Pareto Analysis for SEFP Numbers of Boxes

Critical few towards the Y-Axis

Trivial many trail away from Y-axis


Example: Fishbone DiagramExample: Fishbone Diagram(Cause and Effect Analysis)(Cause and Effect Analysis)People Procedures

Equipment/Systems Materials/Environment

Late order delivery

Item not in stock

Out of Stock

Item

ord

ered

not

a

stoc

ked

item

Credit check takes too long

No procedure for guaranteeing tech and transport

Truck breakdowns

Too many truck out

for maintenance

Computer system down

Stock damaged

Order entered incorrectly

Not enough trucks

Incorrect ite

m picked

No communication with Sales

No communication

with techs Unrealistic delivery data quoted

No communication

with warehouse

Problem of focus placed at the head of the fish

Brainstorm possible causes and show as feeding into the most appropriate spine.

When items come up related to ones already on the diagram. Show as feeding into the appropriate item


Fishbone DiagramFishbone DiagramSEFP CaseSEFP Case

People Procedures


Bar code in wrong place


Assessing the Cause & Effect Analysis and Assessing the Cause & Effect Analysis and preparing to collect datapreparing to collect data

People Procedures


Late order delivery

Item not in stock

Out of Stock

Item

ord

ered

not a

stoc

ked

item

Credit check takes too long

No procedure for guaranteeing tech and transport

Truck breakdowns

Too many truck

out for m

aintenance

Computer system down

Stock damaged

Order entered incorrectly

Not enough

trucks

Incorrect ite

m

picked

No communication with Sales

No

communication

with techsUnrealistic delivery data quoted

No communication

with warehouse

Category Tally Frequency

1

2

3

4

5

6

7

8

Data Collection Instrument:Check Sheet

Check out each potential cause and eliminate ones that can be verified as not happeningPossibly use List Reduction or Multivoting.


SEPF Pareto Chart of Bar Code Wrong Place SEPF Pareto Chart of Bar Code Wrong Place CausesCauses

10

20

Fre

quen

cy/ N

umbe

r of

Occ

urre

nces

30

40

5044

27

15

9

5 2

1 2 3 4 5 6

Cause Codes1. Trip lever sticking2. Box askew on belt3. Operator accidental lever trip4. Box misfeed5. Print head loose6. Other











Pareto Chart

Checksheet


Action Plan



Key Steps:-



Before

After









Potential Solutions

D

MA

C

I











control chart


Key Steps:-



Potential Solutions MatrixPotential Solutions MatrixPotential Solutions Cost

RankingEase of Implementation

% of problem it fixes

Overall Ranking

Scale: 0 = None, 1 = Low, 3 = Moderate, 9 = Strong











Pareto Chart

Checksheet


Action Plan



Key Steps:-



Before

After









Potential Solutions

D

MA

C

I











control chart


Key Steps:-



Improve: Implement and CheckImprove: Implement and Check

Implement preferred solution; Verify effectiveness by checking current

performance against original baselines; Apply statistical comparative methods if necessary.

Before Pareto Chart After Pareto Chart











Pareto Chart

Checksheet


Action Plan



Key Steps:-



Before

After









Potential Solutions

D

MA

C

I











control chart


Key Steps:-



ControlControl

Standardise the solution by making it part of the standard procedure for the process;

Update the performance measurement scorecard for the process;

Implement control charts; Document the project.











Pareto Chart

Checksheet


Action Plan



Key Steps:-



Before

After









Potential Solutions

D

MA

C

I











control chart


Key Steps:-



Future PlansFuture Plans

Review the previous non-pareto causes to see which ones have upgraded themselves and assess whether these are worth going after;

Review any obvious opportunities to apply the solution in other areas;

Communicate the solution to other parts of the organisation where it may also apply;

Review and document lessons learnt and institutionalise the learning.


SEPF EpilogueSEPF Epilogue The benefit generated by this project was $208,000 per annum. This is $45,000 short of

target; Addressing the next two highest causes could potentially yield the following benefits:

Incorrect coding of contents: $39,000 p.a. Box not sealed: $34,000 p.a.

I.e. a total of $73,000 p.a. if both eliminated. This would exceed the original target.

Note: The second CTQ characteristic of concern to customers - schedule compliance - amount delivered benefited as a side-effect. The main contributor to incomplete orders was the rejected & returned boxes.











Pareto Chart

Checksheet


Action Plan



Key Steps:-



Before

After









Potential Solutions

D

MA

C

I











control chart


Key Steps:-



Analysing for Root Causes - RevisitedAnalysing for Root Causes - Revisited


Causes and Root CausesCauses and Root Causes

Cause

Cause

Cause

Root Cause

Observed Problem - Symptom

Th

e P

robl

em S

olvi

ng

Pro

cess

Not Actionable

Not Actionable

Not Actionable

Actionable


South Eastern Food ProcessorsSouth Eastern Food ProcessorsHigh level objective:

Reduce costs of box packaging process

Cost of waste

Box Returns

Boxes Underweight Bar Code Wrong Place

Trigger lever sticking

Light beam printer trigger

Root Cause

Solution




Cost of waste

Box Returns




Root Cause

Solution




Cost of waste

Box Returns




Root Cause

Solution

Level 1

Level 2

Level 3

Level 4

Level 5


No

Yes

Is cause actionable?

Define the problem

Analysing for Root CausesAnalysing for Root Causes Cause & Effect Analysis (Fishbone

diagram). Brainstorm possible causes. Vote on most likely.

Collect Data. Outcomes of Fishbone used to design Checksheet or other appropriate data gathering proforma.

Analyse Data using Pareto chart, determine most likely cause.

If cause not actionable, redefine problem to determine causes of this cause.


Flushing out root causes vs reacting to Flushing out root causes vs reacting to symptomssymptoms

Is cause actionable ?Not a root cause

Does action(s) fix problem ?

Cause found

Not the right cause

Apply problem solving process

YES

YES

NO

NO

Problem Solved

Observed symptom - "The Problem"


The Root Cause Analysis ProcessThe Root Cause Analysis Process

Define/ Redefine the Problem

Brainstorm Possible Causes

Select Pareto Cause as the Problem of Focus

Collect Data on Possible CausesIs the Pareto Cause

Actionable?

Apply Pareto Analysis to the Data Collected

Root Cause Analysis

Root Cause Found

Actionability Test

Yes

No


Reference SheetsReference Sheets


Generating Improvement OpportunitiesGenerating Improvement Opportunities

Present

Reason

Alternatives

Selection

Improvement

Concerning Purpose Place Sequence Person Means

What is done ?

done ?

Can it be

Should it be

Eliminate Combine or Change Simplify

done ? done in the it ? done ?

done there ?

could it be

Where should

done then ? done by that done that

could it be could it be could it be

When should it Who should it How should it

Method

Means of

Questions Aspects Examined

Why is it

eliminated ?

eliminated ?

Where is it When is it

sequence ?

Who does How is it

Why is it

Where else

done ?

it be done ?

Why is it Why is it

person ?

Why is it

way ?

When else

done ?

Who else

done by ?

How else

done ?

be done ? be done by ? be done ?


The 5W2H QuestionsThe 5W2H Questions

Who What Where

Why

Who does it ? Who is doing it ? Who should be doing it ? Who else can do it ? Who else should do it ?

What to do ? What is being done ? What should be done ? What should be done ? What else should be done ? What else should be done ?

Where to do it ? Where is it done ? Where should it be done ? Where else can it be done ? Where else should it be

done ?

Why does he/she do it ? Why do it ? Why do it there ? Why do it then ? Why do it that way ?

How much?

How much does it cost now ?

What will the cost be after the improvement ?

When

When to do it ? When is it done ? When should it be

done ? What other time can

it be done ? What other time

should it be done ?

How

How to do it ? How is it done ? How should it be

done ? Can this method be

used in other areas ? Is there any other way

to do it ?




CONTROL - Standardise FUTURE PLANSIMPROVE - II: Implement and Check


Conclusion of Team Based Problem Solving ModuleConclusion of Team Based Problem Solving Module

4. an overview of the dmaic process at work (220 k ppt)

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