6 6 an introduction by habib siddiqui, ph.d. [email protected]

66An Introduction

by Habib Siddiqui, Ph.D.

[email protected]

6

•US has lost 3.3 million manufacturing jobs during March 1998-2006 (before current recession)•Supply chains have lowered inventories by $4.6 trillion dollars•Inquiries on your computer and phone accounts are often answered by outside call centers•Your tax return is completed in India•Your Jet Blue reservation is taken by Betty in her house coat and slippers in Salt Lake City•Dad’s X-rays are read overseas at 2:00 a.m. while you are sleeping•US share of scientific papers in the Physical Review Letters fell from 61% in 1983 to 29% in 2003•Mama-papa stores are vanishing from neighborhoods at an exponential rate. 1/3 of the US population shop in the Wal-Mart every week (Wal-Mart has 60,000 suppliers)•Downstream customers and retailers are placing increasing focus on what goes upstream: how things are made, framed, packaged, transported, displayed and sold worldwide (Life Cycle Thinking)

“We need to be telling our kids to hurry up and eat and get to their homework - there are kids in China and India who are starving for our jobs”

- Tom Friedman, The World is Flat

Have you noticed ?…

Competitive Realities of Our TimeThe Global Business Climate

• Fierce, global competition• Accelerating pace of change• New technologies• Increasing customer demands - performance,

quality, price, “solutions, not products,” ...

Quality & Performance: Higher expectations

Cost:Only low cost

providers will survive

Speed: Short product life cycles,

“e-business” mindset

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6

This sentiment is echoed by a CEO…

“As we envision the environment in which pharmaceutical companies will be operating in the years ahead, we believe – and we’re hardly alone in this belief – that those companies that develop competitively priced, novel medicines that demonstrably improve the health and wellbeing of patients will prosper.”

- Raymond Gilmartin, Merck & Co. [March 1, 2004]

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New Initiatives to Meet the Realities

Speede-Engineering,

Lean Enterprise,Streamlining SC

CostTarget Costing, Globalization

Quality & PerformanceSix Sigma, Design for Six Sigma, Lean Enterprise,

Stage Gate/NPI, Risk Management

Lower Cost

BetterQuality

Quicker to Market

Higher Performance

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“Eighty-five percent of the reasons for failure to meet customer expectations are related to deficiencies in systems and process…

rather than the employee.

The role of management is to change the process rather than badgering individuals to do better.”

In other words, look for the root causes, not the “root who.”

Why Six Sigma? – Dr Deming

6

Six sigma business improvement starts with SIPOC

Suppliers Inputs(Business)

Process

(Process)

Outputs

(Critical)

Customer(Requirements)

Defects

Variation in the output from whatthe customer wants causes defects.

Root cause analysis leads to permanent

elimination of defects

USLLSL

CCR

Output

* *

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All processes have variability

All variability has causes

Typically only a few causes are significant

To the degree that those causes can be understood- they can be controlled

Designs must be robust to the effects of the process variation

This is true for products, processes, services, information transfer, everything . . .

. . .is that uncontrolled variation is the enemy

The basic Six Sigma The basic Six Sigma premisepremise . . . . . .

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What is Six Sigma?

Six Sigma is a powerful set of statistical and management tools and methodologies that can create dramatic increases in customer satisfaction, productivity and shareholder value for both service and manufacturing companies/organizations.

It is a disciplined methodology of defining, measuring, analyzing, improving and controlling the quality in every product, process and transaction – with the ultimate goal of virtually eliminating all defects. (Jack Welch, GE)

6

History of Six Sigma

Motorola (mid-’80s) GE – under Jack Welch (mid-’90s) Others doing it:

- Dow, Witco, DuPont, Rohm and Haas- Ford, GM- Johnson & Johnson, Merck (2000-01)- Maytag- Allied Signal (now Honeywell) - 3M, Kodak, Corning- any many others.

Average six sigma project saves $250M

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Six Sigma: PhilosophyThe Motorola School: (Show me the “Defect”)Relentless Defect Elimination

– Find and Remove Existing Defects

– Prevent New Defects

The GE School: (Show me the “$$$”)Relentless Pursuit of Financial Opportunities

– Identify High Impact Projects

– Use Six Sigma Methodology to Optimize the Process

– Visible Bottom Line Impact

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• Defects & yield depend on –Spec width (design requirement)

–Standard deviation (process variation)

i.e., on the Sigma Level

• Reduce defects and improve yieldsby reducing process variation, i.e., by reducing std deviation and thereby raising the Sigma Level

Reducing Defects and Improving Yield

TargetLSL

Defects =

Area > USLDefects = Area < LSL

USL

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Six Sigma : Measurement

Sigma Level

% Good Defective ppm

2 69.15 % 308,537 3 93.32 % 66,807 4 99.379 % 6,210 5 99.9767 % 233 6 99.99966 % 3.4

Historic standard

New standard

20,000x improvement

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How Important is Quality?

If your water heater operated at Four Sigma performance, you’d be without hot water more than 54 hours each year.

At Six Sigma, you’d be without hot water less than two minutes a year!

If your goal was 99% quality, you'd still have: 15 minutes of unsafe drinking water

every day 2 unsafe plane landings per day at most

major airports 20,000 pieces of lost mail every hour 200,000 wrong drug prescriptions per

year 5,000 incorrect surgical operations per

week(Ref: Control Engineering, Jan. 1999)

Sigma Levels of Some Activities

1

10

100

1000

10000

100000

1000000

1.5 2 2.5 3 3.5 4 4.5 5 5.5 6

Sigma Level

De

fect

s /

Mill

ion

Prescription Writing

Airline Baggage Handling

US Airline Fatality Rate

World-Class Quality

Companies

Ave US Company

Tax Advice at IRS Help Centers

Restaurant Bills

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6

The Cost of Variation – Taguchi Loss Function

WhereLSL = lower spec limitNom = targetUSL = upper spec limit

Traditional ViewTraditional View

Cos

t

LSLLSL NomNom USLUSL

AcceptableAcceptable

Correct ViewCorrect View

Cos

t

LSLLSL USLUSLNomNom

CTQ

Cost of Poor Quality – COPQ -consists of those costs which are generated as a result of producing defective material.

COPQ is a financial measure of the user or customer’s dissatisfaction with a product’s performance as it deviates from a target value.

$ COPQ = k (CTQ – Target)2

Tangible Costs• Inspection• Scrap• Rework• Warranties

Intangible Costs• Lost Customers • Longer Cycles

The High Cost of Poor Quality

Enormous opportunityEnormous opportunity

Avg. US Co.

World-Class Co

30%

25%

20%

10%

15%

5%

0%

Sigma Level6 5 4 3 2

Cost of Poor Quality (% of Sales)

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The Focus of Six Sigma:Fix Processes, Not Products

Y

• Output

• Dep Variable

• Effect

• Symptom

• Monitor

x1, x2, …, xn

• Inputs

• Indep Variables

• Root Causes

• Problems

• Fix & Control

Output Y= f (Process Variables x1, x2, …, xn)

• Many quality approaches focus on inspecting and fixing outputs (Y’s, e.g., products)

• Six Sigma focuses on fixing and controlling key process variables (x’s) which cause output defects

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Six Sigma Methodology“Flavors”

Six Sigma Process Optimization (DMAIC) Manufacturing process Business/service/transaction process

Design for Six Sigma (DFSS) new products new processes new services Redesigning an existing product/service.

6

Six Sigma DMAIC Methodology

D

M

I

A

C

Define what’s important

Measure how we’re doing

Analyze what’s wrong

Improve by fixing what’s wrong

Control to guarantee performance

Six Sigma is information dependent.

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The Six Sigma Filtering EffectThe Six Sigma Filtering Effect

Critical Input Variables

100+ Inputs

8 - 10

3 - 6

1 - 3

25 - 30MEASURE

ANALYZE

IMPROVE

CONTROL

• Capability Study• Measurement Study• C& E Matrix

• FMEA• Multi-Vari Studies

• Design of Experiments (DOE)

• Control Plans

Inexpensively, narrow in on fewer and fewer Variables, Saving more “expensive” tools for when we have fewer Variables

• Process Maps

All Possible Variables

Sustain-Certify • Confirm Benefits $ $

Output Y= f(x1, x2, …, xn)

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Six Sigma Methodology Road Map

Process Maps Cause and Effect

Diagram (Fishbone)

Dot Plots Box Plots Scatter Plots Control Charts Process Capability Measurement

System Analysis Gage R&R P/T Ratio Discrimination

Ratio Multiple

Subjective Evaluation

Destructive Testing

Full Factorial DOE

Fractional Factorial DOE

Power and Sample Size

Taguchi DOE Response

Surface Modeling

EVOP Attribute DOE Mixture DOE Solution

Generation Simulation Piloting TRIZ Kaizen

Cause & Effect Matrix

Process / Product FMEA

Probability Components of

Variation Multi-Vari Analysis Hypothesis Testing Confidence Intervals Test for Equal

Variance Correlation Linear Regression Multiple Regression One-Way ANOVA Two-Way ANOVA Chi Square Binary Logistic

Regress. Non-Parametric

Tests Value Analysis Theory of

Constraints Discrete Event Sim Is-Is Not Analysis

Design FMEA Process Control

Plan CUSUM Charts EWMA Charts Control Metric ISD Procedures COPS / 5S Visual Factory Poka-Yoke Implementation

Plan PERT Diagrams Communication

Plan

Define

Measure

Control

Improve

Analyze

SustainCertify

Effective Meetings Opportunity

Analysis Cost of Poor Quality Asset Utilization Financial Analysis SIPOCC Brainstorming Nominal Group

Technique Affinity Diagram Check Sheets Run Charts Pareto Histogram Market Research Survey Focus Groups Interviews Kano Model QFD Decision Analysis

Matrix Impact-Effort

Analysis Project Charter Gantt Charts

Project Translation

Documentation

Certification

TOOLS:Statistical

Non statistical

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Six Sigma: Six Sigma: Conceptual ApproachConceptual Approach

Practical ProblemPractical Problem Statistical ProblemStatistical Problem

Statistical SolutionStatistical SolutionPractical SolutionPractical Solution

y f x x x k ( , , . . . , )1 2

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When to Use Six Sigma

You have a performance gap in a process Driven by the Business strategy High Impact on $$ or Customers Problems that “have withstood the test of time” Root Cause is unknown Solution is not known

You want a more robust solution In the past, solutions fail to “stick”

6

Let’s be smart about this…

IF

You know the solution to your problem / opportunity

You don’t know the solution but you suspect others do

The impact solving the problem / opportunity is small or not strategically important.

THEN

Implement the Solution .

Identify Best Practice and Implement

. Cancel the project

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Daily Commute Problem

The employee John Doe lives nearly 25 miles away from his workplace. He likes to come to work at 8 a.m. His average commuting time is nearly 46 minutes and depends on many factors. He rides a car that gives him approx. 20 miles/gal. With high gasoline prices (costing ~$2.80/gal), he is reevaluating how to best optimize his time and miles/gal in commuting to work.

How can we help John Doe with his problem?

Define

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0 50 100

20

30

40

50

60

70

Observation Number

Indi

vidu

al V

alue

I Chart for Commute_

Mean=45.72

UCL=69.25

LCL=22.19

Variable N Mean Median TrMean StDev SE Mean

Commute_ 100 45.720 46.000 45.711 7.716 0.772

Variable Minimum Maximum Q1 Q3

Commute_ 24.000 66.000 40.000 51.000

Define

6

What are the CTQs and COPQ?

CTQs: - Commuting time (defn: time between leaving home and arriving in office)- MPG

COPQ:- Internal: $100M/yr (lose job) plus price differential in gasoline purchase

- External: $1MM (company)

Define

6

What are the variables that affect these outcomes?

Where to start to identify variables? - Process Mapping

Process Mapping involves- Identify steps- Input variables- Types of input variables (controlled or uncontrolled)

- Outputs

Measure

6

Process Map

Home Activities

Car Start-up Activities

RoadActivities

Parking/Arrival

Outputs

Looking good

Well-fedWell-preparedSafety Elapsed time for home activities

Safety

Drive

Milage per gallon

Commuting time

ParkMilage per gallon

Reach the office

Arrival time

InputsVariable

Type

CWake-up time CGo to bath room CDress up CGet the keys CGet the office badge CHave breakfast CCarry bag to car CLock the house door C

Open the car door CPut the seat belt CStart the car CMove car from driveway to road C

Roads/routes CTime of the day CDay of the week CTraffic condition UWeather USeason of the year CGasoline in car CType of gasoline CTire pressure CCondition of tire CCondition of engine CSpeed of driving C

Find Parking spot UStop the car CWalk out from parking COpen the door to building CWalk to office CTurn on the office light CSwitch on the computer C

Measure

6

Which of these 31 variables are the potentially important ones?

How important are the CTQs? Commute Time: what is desirable? – max. 50 min MPG: what is desirable? – 30 mpg

How do we prioritize the input variables?- Use Cause & Effect matrix to find causal relationship.- Use a scale of 0 (no), 1 (minor), 3 (moderate) and 9 (major relationship).

Measure

6

Rating of Importance to Customer 10 5

1 2 3 4Process Step Process Inputs

Type of variable,

controlled or uncontrolled C

om

muting

Tim

e

MP

G

Total

Road Activities Traffic condition U 9 9 135Home Activities Wake-up time C 9 0 90Home Activities Go to bath room C 1 0 10Home Activities Dress up C 1 0 10Home Activities Car Keys C 3 0 30Home Activities Office Badge C 9 0 90Home Activities Have breakfast C 1 0 10Home Activities Carry bag to car C 1 0 10Home Activities Lock the house door C 1 0 10

Car Start-up Activities Open the car door C 1 0 10Car Start-up Activities Put the seat belt C 3 0 30Car Start-up Activities Start the car C 1 0 10

Car Start-up ActivitiesMove car from driveway to road C

1 1 15

Road Activities Roads/routes C 9 9 135Road Activities Time of the day C 9 9 135Road Activities Day of the week C 3 3 45Road Activities Speed of driving C 9 9 135Road Activities Weather U 3 9 75Road Activities Season of the year C 1 3 25Road Activities Gasoline in car C 3 1 35Road Activities Type of gasoline C 1 9 55Road Activities Tire pressure C 9 9 135Road Activities Condition of tire C 3 3 45Road Activities Condition of engine C 3 3 45

Parking Find Parking spot U 3 1 35Parking Stop the car C 1 1 15Parking Walk out from parking C 1 0 10

Parking Open the door to building C

3 0 30

Parking Walk to office C 1 0 10Parking Turn on the office light C 0 0 0

Parking Switch on the computer

C0 0 0

Total 1030

395

0 0

Lower Spec 0 15

TargetUpper Spec 5

0

30

Measure

6

Total

0

20

40

60

80

100

120

140

160

Roads

/rout

es

Speed

of d

rivin

g

Traffic

con

ditio

n

Office

Bad

ge

Type

of g

asol

ine

Condi

tion

of ti

re

Gasol

ine in

car

Car K

eys

Open

the

door

to b

uildi

ng

Mov

e ca

r fro

m d

rivew

ay to

road

Go to

bat

h ro

om

Have

brea

kfast

Lock

the

hous

e do

or

Start

the

car

Wal

k to

offic

e

Switch

on th

e co

mpu

ter

Measure

6

Potentially important Input Variables are:

Process Step Process Inputs

Type of variable,

controlled or uncontrolled C

omm

utin

g T

ime

MP

G

Total

Road Activities Roads/routes C 9 9 135

Road Activities Time of the day C 9 9 135Road Activities Speed of driving C 9 9 135Road Activities Tire pressure C 9 9 135Road Activities Traffic condition U 9 9 135Home Activities Wake-up time C 9 0 90Home Activities Office Badge C 9 0 90Road Activities Weather U 3 9 75Road Activities Type of gasoline C 1 9 55

Measure

6

Further narrow down of variables

Use Failure Modes & Effects Analysis (FMEA) Rate for severity, S (1=min, 10=max) Rate for occurrence, O (1=least, 10=most) Rate for current control/detection, D (10=none,

1=certain detection) Risk Priority Number, RPN= SxOxD

Analyze

6

What is the process step/

Input under investigation?

In what ways does the Key Input go wrong?

What is the impact on the Key Output Variables (Customer Requirements) or internal requirements?

How

Severe

is t

he e

ffect

to t

he c

usotm

er? What causes the Key Input to

go wrong?

How

oft

en d

oes c

ause o

r

FM

occur? What are the existing controls

and procedures (inspection and test) that prevent either the cause or the Failure Mode? Should include an SOP number.

How

well

can y

ou d

ete

ct

cause o

r F

M?

Route taken Took surface roads Takes longer time5

Too many stop signs; did not carry cash (can't pay toll) 4

Road map2 40

Time of the day Rush hour (left home after 7 a.m.)

Takes too long 9

Too much traffic on the road9

Clock, watch1 81


Takes too long 9

Trash collection day3

Weekly event1 27

Traffic Condition Bad Stranded, takes longer7

Accident on the way2

None10 140


Gaper delay2

None10 140

Speed Low speed driving Takes too long, consumes more gasoline 9

Traffic condition is bad3

Speedmeter in car1 27

Speed High speed driving Takes less time, but can get ticketed 9

Less traffic2


Tire pressure Low pressure Consumes too much gasoline, can also get flat - thus requiring repair

9

Lack of inspection

2

Visual

2 36

Office badge Missing badge at work Go to guard house and sign up for a temporary badge 4

Misplacement of badge at home, forgot 2

None10 80

Wake-up time Woke up after 6 a.m. Late for work10

Alarm did not work1

Alarm clock1 10


Went to sleep very late3

Wall clock, spousal complain; alarm clock 1 30


Sick1

Healthy living, good diet; alarm clock 2 20

Weather Snow or rain Late to work9

Nature/seasonality4

None10 360

Type of gasoline Low octane Consumes more gasoline2

Savings per gallon9

Gas pumps1 18

Analyze

6




What is the impact on the Key Output Variables (Customer Requirements) or internal requirements?

How

Severe

is t

he e

ffect

to t

he c

usotm

er?

What causes the Key Input to go wrong?

How

oft

en d

oes c

ause o

r

FM

occur? What are the existing controls

and procedures (inspection and test) that prevent either the cause or the Failure Mode? Should include an SOP number.

How

well

can y

ou d

ete

ct

cause o

r F

M?

Weather Snow or rain Late to work9

Nature/seasonality4

None10 360


Accident on the way2

None10 140


Gaper delay2

None10 140


Takes too long 9

Too much traffic on the road9

Clock, watch1 81

Office badge Missing badge at work Go to guard house and sign up for a temporary badge 4

Misplacement of badge at home, forgot to bring 2

None10 80

Route taken Took surface roads Takes longer time

5

Too many stop signs; did not carry cash 4

Road map

2 40

Tire pressure Low pressure Consumes too much gasoline, can also get flat - thus requiring repair

9Lack of inspection

2Visual

2 36

Wake-up time Woke up after 6 a.m. Late for work

10

Went to sleep very late

3

Wall clock, spousal complain; alarm clock 1 30


Takes too long 9

Trash collection day3

Weekly event1 27

Speed Low speed driving Takes too long, consumes more gasoline 9

Traffic condition is bad3


Wake-up time Woke up after 6 a.m. Late for work

10

Sick

1

Healthy living, good diet; alarm clock 2 20

Speed High speed driving Takes less time, but can get ticketed 9

Less traffic2


Type of gasoline Low octane Conumes more gasoline2

Savings per gallon9

Gas pumps1 18


Alarm did not work1

Alarm clock1 10

Analyze

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Input Variables RPN TypeTraffic Condition 140 UTraffic Condition

140 WWeather 108 U

Time of the day 27 CSpeed 27 C

Route taken 20 CWake-up time 20 C

Type of gasoline 18 CWake-up time

10Wake-up time

10 CTire pressure 9 C

Time of the day9 C

Office badge 8 C

Analyze

6

Actions Recommended

Resp. Actions TakenSEV

OCC

DET

RPN

What are the actions for reducing the

occurrance of the Cause, or improving detection? Should

have actions only on high RPN's or easy

fixes.

Who is Responsible for

the recommended

action?

What are the completed actions taken with the recalculated RPN? Be

sure to include completion month/year

Can't do much; uncontrolled event

God Leave home early, watch weather report 9 4 3 108


God Hope 7 2 10 140


God Hope 7 2 10 140

Leave before -7 a.m. Employee Leave between 6:40-7 a.m. 9 3 1 27

Put it near eye-glass or inside bag

Employee Put inside attache/bag4 2 1 8

Take Freeway/TPk Employee Take Freeway/TPk

5 2 2 20

Check tire pressue upon arrival at home and before start-up

Employee Check tire pressue upon arrival at home and before start-up

9 1 1 9

Go to sleep before 11 p.m., use alarm clock

Employee Go to sleep before 11 p.m., use alarm clock 10 2 1 20

Leave the trash for pick-up the previous night

Employee Leave trash for pick-up on Sunday 9 1 1 9

9 3 1 27

Exercise 2 days per week, periodic medical checkup

10 1 1 10

9 2 1 18

2 9 1 18

10 1 1 10

Process Step/Input

Potential Failure Mode




Weather Snow or rain

Traffic Condition Bad

Traffic Condition Bad


Office badge Missing badge at work

Route taken Took surface roads

Tire pressure Low pressure

Wake-up time Woke up after 6 a.m.


Speed Low speed driving


Speed High speed driving

Type of gasoline Low octane


Analyze

6

Experiment with new procedure to check hypothesis

0 50 100

20

30

40

50

Observation Number

Individu

al V

alue

I Chart for New_Time

Mean=35.39

UCL=49.60

LCL=21.18

Variable N Mean Median TrMean StDev SE Mean

New_Time 100 35.390 36.000 35.456 4.788 0.479

Variable Minimum Maximum Q1 Q3

New_Time 24.000 46.000 32.000 38.000

Improve

6

0 100 200

20

30

40

50

60

70

Observation Number

Indi

vidu

al V

alue

I Chart for Time by Experime

Mean=35.39

UCL=49.60

LCL=21.18

Old New

Improve

nt

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Gas Mileage per Gallon

Initial gas consumption = 20 mpg Desire to get better mileage Key input variables for MPG are

- gasoline octane rating- tire pressure- driving speed

Full Factorial DOE with 3 variables @ 2 levels would require: 2x2x2 = 8 experimental runs.

Improve

6

Problem: Gas Mileage is 20 mpg

What conclusion do you make now?

Speed Octane Tire Pressure Miles per Gallon55 85 30 2565 85 30 2355 91 30 2765 91 30 2355 85 35 2765 85 35 2455 91 35 3265 91 35 25

MPG = f(Speed, Octane, Tire Pressure)

Do we think 32 is best?Do we think 32 is best?

Full Factorial ExperimentImprove

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Control Plan During rainy and winter seasons: leave home early,

watch weather report before leaving home. In normal times: Leave between 6:40-7 a.m. Put office badge inside wallet Take Freeway + Turnpike whenever possible Check tire pressure upon arrival at home and before

start-up Go to sleep before 11 p.m., use alarm clock to get up

on time. Leave trash for pick-up on Sunday evening For best mileage: ensure tire pressure @35 psig, drive

@ 55 mph, and use 91 octane rating gasoline.

Control

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Cost Of Poor Quality over the product life cycle (from lab to customer)

Most current six sigma effort is here

R&D/Discovery, Pre-

clinical

Pilot plant/Clinical I-III

Production/Commercialization

Customer

Defects are:

Difficult to see/predictEasy to fix

Easy to seeCostly to fix May lose customers

We ought to do here

We need a paradigm shift in how we do things: from reactive to predictive mode.

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» Six Sigma Practices in Manufacturing is Not Enough» Cannot Produce a Six Sigma Product via Mfg Alone

Up to 4.5

4.5

5

The “5 Wall”

Achievable via Mfg Improvements

Law of Diminishing Returns in Mfg

Requires Product Designed for 6DFSS

Customers don’t care about the Mfg Processes

Customers want Product Performance, Reliability & Durability

Why DFSS?

D-M-A-I-C has been around for over 10 years, but…

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Underlying Truism: Knowing what the customer needs

We don't know what we don't know, we can't act on what we don't know, we won't know until we search, we won't search for what we don't question, we won't question what we don't measure, and hence we just don't know.

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Customer Service 101: Know what is “good” to your customer … (VOC)

Ichiro Ishikawa:

“When I ask the designer what is a good car, what is a good refrigerator and what is a good synthetic fiber, most of them cannot answer. It is obvious they cannot produce good products.

You simply cannot design a good product or service if you do not know what “good” means to the customer.

The designer must create a map that moves the world of customer to the world of the designer”

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Customers: how important are they?

Customer loyalty for strategic partners is very important. Keeping an old customer happy is more fruitful than finding a new one. (It is easy to retain five satisfied customers than to find a new one.)

One happy customer tells three people, 1 unhappy customer tells 20.

6

Voice of the Customer

Customer Satisfaction = f( Perception, Expectation)

Level 1 : Features and CostLevel 2 : QualityLevel 3: Features, Cost, Quality, Delivery,…. Value added

1

2

3

Customer value =

Higher Quality

Better Servicex

Lower Cost

x Less Time

6

Kano Model (a 2-d concept of quality)

Satisfied

Dissatisfied

Good performancePoor performance

With Time

6

And we often do ….

Insane things.

Insanity (definition):Continue to do things we have always done

and yet expect to get different results.

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A Specific Product Design Methodology where Customer Requirements Dictate the Critical Parameters and the Variability of the Critical Parameters are Optimized for Predictive Product Performance,

Manufacturability, Reliability and Durability.

Define

Identify

Design

Optimize

Validate

Critical-To-Quality (CTQ) Parameters, Set Technical Requirements & Quality Targets

Concept Design, Develop Transfer Functions between CTQ’s and Design Spec’s… Y=f(x)

Analyze & Optimize for Robust Performance, Predictive Manufacturability, and Reliability

Test & Validate Predictions, Assess Performance, Initial Capability Studies

Marketing

Science/Engg.

Sta

tist

ical

Thi

nkin

gU

nder

stan

d/C

ontr

ol V

aria

tion

s

DFSS Overview: Alternative Roadmap

Customer Requirements Based on Expectations, a.k.a: Voice of the Customer (VOC)

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What’s Different About DFSS?

Disciplined, comprehensive process Line of sight from customer CTQs to all design levels Statistical design to understand and reduce variation “New” tools: QFD, DOE, Robust Design, DFM, statistical

tolerancing, multi-variable optimization, ... Quality prediction throughout development

6

Integrating DFSS with Stage-Gate/NPI

Tollgates 1 2 3 4 5NPI Stages

DF

SS

Ele

men

ts

DFSS: Identify Design Optimize Validate

• Business needs• Mkt reqts

• Alpha drawings

• Rev 1 drawings

• Rev 2 drawings

CTQs

SystemsEng

• Quality targets

• Updated scorecard: prediction,

capability data

• Scorecard verification

• Product Z estimates

Specs

Detailed Design

Prototype & Test

Mfg Preparation

Prediction

Quality

Design for Perf

Product

Marketing & Concept Design

Design for Prod

• Customer CTQs

• QFD 2: Reqts to part specs

• CTQ estimates

• First piece CTQ

verification

• Final system CTQ

verification

• Tech feasibility

assessment

• Alpha test performance verification

• Pilot run performance verification

• Mfg process concept

• Tolerancing• Proc capability

compatibility

• Tooling procurement

• Final mfg reqts

• Supplier qual

• Improved perf based on eng

analysis & tests

• Improved transfer fcts:

eng analysis & DOE

• System concept

• Functional block diagram

• Prototype confirmation

• Model validation

• System & component

qualifications

• Initial Z allocations & scorecard:

opinion, entitlement

• Prelim perf based on

subsystem specs & initial tests

• Prelim mfg reqts • Key process

capability data

• CTQ flowdown • Subsystem

reqts & transfer functions

Preliminary Design

• QFD 1: Customer CTQs

to tech reqts

• Preliminary product specs

Columns: Items required for tollgate review

Columns: Items required for tollgate review

Stage-Gate/NPI: Bus/mgt process for new product dev

Stage-Gate/NPI: Bus/mgt process for new product dev

Rows: Progressive refinement of DFSS elements

Rows: Progressive refinement of DFSS elements

DFSS: Technical process - how product is

designed

DFSS: Technical process - how product is

designed

6

Chairman Cho of Toyota: Three Keys to Lean Leadership

Go See

“Senior Management must spend time on the front lines”

Ask Why

“Use the “Why?” technique daily”

Show Respect

“Respect your people.”

Fujio Cho, Chairman of Toyota Motor Corp.

Reproduced with permission of John Shook, Lean Enterprise Institute

6

Lean Methodology

Specify ValueSpecify ValueIdentify the

Value StreamIdentify the

Value Stream

PullPullFlowFlow PerfectionPerfection

Reference: Lean Thinking, J. Womak and D. Jones, 1996

A Simple, Intuitive Approach!!

Focus on Value from the eyes of the customer (VA and NVA activities)Eliminate waste (Muda)Reduce cycle time / increase speedIn lean design – create flow and value for the customer / minimize waste

6

Value Add vs. Non-Value Add

Type of Process Step Definition Action

Value Add (VA) Transforms or shapes a product/service which is eventually sold to a customer

Identify

Non-Value Add (NVA) Take time, resources, or space but do not add value to the product or service

Eliminate or redesign

Business Value Add (BVA) Not seen as valuable by the customer, but required in order to complete the process

Remediate or Continuously improve

6

What is Waste?

Activity that consumes resources without creating value for the customer

Unevenness in a process (“Hurry up and wait”)

Overburdening people or equipment

6

7 Types of Waste

Processing

Motion

Defects Over-

Production

Transportation

Inventory

Waiting Time

TypesOf

Waste

Returns

Incoming material rejects

Multiple sign offs

Over design of packaging

Expired, unused promotional materials

Unnecessary Warehousing

Multiple handoffs

Searching for information

Multiple data bases

Excess promotional

material

Over forecasting

Slow decision making

Late sales material

TIMWOOD

6

ManyHand-offs

Poor Quality

Lack ofTraining

Poor AccessTo Data

PoorScheduling

Sea of Excess Transactions, Staffing, Capital

Some Drivers of Waste

6

A Lean Roadmap

Strategy Strategy DeploymentDeployment

ID & Select ID & Select KeyKey

ProcessesProcesses

Project Project CharteringChartering

Understanding Understanding As-IsAs-Is

Plan Event / Plan Event / Design Future Design Future

StateStateProject ClosureProject Closure

• Link company strategy to lean initiatives

• Develop plan to identify key value streams to be addressed

• Determine the type of event and resources required

• Train participants

• Generate Current State

• Identify opportunities

• Create Future State

• Plan for improve-ments

• Track results

• Transfer knowledge

• Conduct events

• Drive for results

Implement Implement ImprovementsImprovements

• VOC

• VOP

• CM

6

Project Selection Guideline

New Process/ Business/Product/Service?

Improve Process/ Business/ Product/ Service by reducing standard deviation and

shifting the mean?

Reduce Waste in Process/Business/Product/Service?

No

No

No

Just do it!

DFSS

DMAIC

Lean

Yes

Yes

Yes

Needs redesign because of reaching entitlement?

Yes

No

6

Which Problem Solving Method? – Another Look

LeanLean• Unacceptable time to get things done

• Large amounts of waste/wasted effort

• High, unexplained variation in key metrics

• Lack of optimal settings for process X’s

DMAICDMAIC

• A current design that cannot achieve desired result

• No current design at all (clean sheet)

DFSSDFSS

If You Are Experiencing . . . You probably need . . .

6

Practical Statistics

The long-range contribution of statistics depends not so much upon getting a lot of statisticians into industry as it does in creating a statistically minded generation of physicists, chemists, engineers, and others who will have a hand in developing and directing the production processes of tomorrow.

– W. A. Shewhart and W. E. Deming (1939)

6

Six Sigma …The right projects

+

The right people

+

The right roadmap and tools

+

The right support

=

The right results

6

Business Results of Using Six Sigma

6 6 an introduction by habib siddiqui, ph.d. [email protected]

Documents

higher performance slide

root causes

dr deming slide

sigma business improvement

process variation

higher expectations

customer demands performance

customer expectations