targeting design for 6 sigma

1Deming Forum 20036

Targeting Design for 6 SigmaMartin Gibson

ASI Quality Systems, 12 Beales Lane, Milton Keynes MK7 7HBTel: 01908-259999 email: martingibson@asiqs.co.uk www.asiqs.co.uk

2Deming Forum 20036

County Council Public Survey to DecideHow £300m Budget Will Be Spent

3Deming Forum 20036

‘In order to fund services, both those which we are currently provide and those which we will need to provide in the future, we will have to increase the amount of council tax above the current rate of inflation’.

1. I would be prepared to pay more council tax to improve the current level of service.

2. I would be prepared to pay more council tax to maintain the current level of service.

3. I definitely do not want to pay more council tax, even if this means that services will be reduced.

County Council Spending

4Deming Forum 20036

Transactional Six Sigma

Lean Six Sigma

Design for Six Sigma

What next?

Six Sigma evolution . . . And Customers!

5Deming Forum 20036

Motorola Six Sigma

Routine and effective use of Six Sigma tools:

to improve quality and technology

to reduce cycle time and costs

Motorola Six Sigma – where it all started

6Deming Forum 20036

= A step towards structured continual improvement

1 - Identify the Product / Service

2 - Identify the Customers and their needs

3 - Determine the Suppliers and their needs

4 - Describe the Process

5 - Eliminate the defects / Optimise the Process

6 – Continually Improve using Six Sigma

(or ”6 stages towards excellence” )

Motorola Six Sigma

Suppliers CustomersInputs Products /

ServicesProcess Activities

7Deming Forum 20036

Six Sigma DMAIC and DMADV

Existing Product or Process • Define

• The project goals and customer deliverables

• Measure• The process to determine

current performance

• Analyze• And determine the root cause(s)

of the defects

• Improve• The process by eliminating

defects

• Control• Future process performance

New Product or Process (DfSS)• Define

• The project goals and customer deliverables

• Measure• And determine customer needs and

specifications

• Analyze• The process options to meet the

customer needs

• Design• The process to meet the customer

• Verify• The design performance and ability

to meet customer needs

8Deming Forum 20036

• The Customer is at the centre of Six Sigma• There are two ways to achieve Six Sigma:

• Reducing variation in the process• Opening up the specification

• A SIPOC Process Map defines the process to be improved• Product/Process measures should be directly linked to

Customer Requirements• Customer Focus is used in the Define and Measure phases

of the DMAIC Improvement Process

Six Sigma & Customer Focus

9Deming Forum 20036

• In Six Sigma we need to have objective measures of the Customer Requirements

• These measures are referred to as the “y’s” or process outputs

• We need a rigorous and structured process to establish and prioritize these y’s

• This enables us to generate/check that the specification is focused on the customer

Outputs, “y’s”

10Deming Forum 20036

Define

Identify Opportunity

Identify y’s(Outputs)

Measure

y = f(x)Identify

Critical x’s(Inputs)

Analyse

Optimise Critical x’s

Improve

ControlCritical x’s

Control

DMAIC Improvement Process

Customer Focus

Define ImproveMeasure Control Control Critical x’s

Monitor y’s

Validate Control Plan

Close Project

1 5 10 15 20

Upper Control Limit

Lower Control Limit

Phase Review

Analyse Characterise x’s

Optimise x’s

Set Tolerances for x’s Verify Improvement

15 20 25 30 35

LSL USL

Phase Review

y=f(x1,x2,..)

. . .. . . . . . . . . . .

Identify Potential x’s

Analyse x’s

Select Critical x’s

Phase Review

Run 1 2 3 4 5 6 7

1 1 1 1 1 1 1 12 1 1 1 2 2 2 23 1 2 2 1 1 2 24 1 2 2 2 2 1 15 2 1 2 1 2 1 26 2 1 2 2 1 2 17 2 2 1 1 2 2 18 2 2 1 2 1 1 2

Effect

Select Project Define Project

Objective Form the Team

Map the Process Identify Customer

Requirements

Identify Priorities Update Project File

Phase Review

Define Measures (y’s)

Evaluate Measurement System

Determine Process Stability

Determine Process Capability

Set Targets for Measures

15 20 25 30 35

LSL USL

Phase Review

Operational DMAIC Improvement Process

Brainstorm Potential Improvement Strategies

Select Imp’t Strategy

Plan and Implement Pilot

Verify Improvement

Implement Countermeasures

Criteria A B C DTime + s - +Cost + - + sService - + - +Etc s s - +

15 20 25 30 35

LSL USL

Define ImproveMeasure ControlAnalyse

Transactional DMAIC Improvement Process

Develop y’s

Collect data

Validate data Establish Process

Stability Establish Process

Capability

Set targets for improvement

15 20 25 30 35

LSL USL

Phase Review

Develop Detailed Process Maps

Map the Ideal Process

Identify Critical Process Steps (X’s) by looking for:

– Process Bottlenecks

– Rework / Repetition

– Non-value Added Steps

– Sources of Error / Mistake

PROCESSSTEPS

DECISION

Phase Review

Develop and Implement Control Mechanisms for Critical x’s

Monitor Process Performance (y’s)

Identify Further Opportunities

Document

1 5 10 15 20

Upper Control Limit

Lower Control Limit

Phase Review Phase Review

Requirements

Phase Review

Deming Forum 20036

1. Define the Problem

2. Interim Actions

3. Acquire and Analyse Data

4. Determine Root Cause

5. Evaluate Possible Solutions

6. Action Plan and Implement

7. Verify the Results

8. Standardise and Future Actions

Team Problem Solving Process

Check Sheet

Pareto Chart

•••

••

A B C D E Other

80 100%

Histogram

ControlChart

FlowChart

PROCESSSTEPS

DECISION

IS IS NOT

WHERE?

HOW MUCH?

Is/Is Not Analysis

CapabilityStudy

Useful Tools for Defining the Problem

Lean Six Sigma

What next? Let’s check where we are

Problem Solving

Memory Jogger 1. Select the problem/process that will be

addressed and describe the improvement opportunity

2. Describe the current process surrounding the improvement opportunity

3. Describe all of the possible causes of the problem and agree on the root cause(s)

4. Develop an effective and workable solution and action plan, including targets for improvement

5. Implement the solution or process change

6. Review and evaluate the result of the change

7. Reflect and act on learnings

Ford Global 8D Problem Solving1. Establish Team

2. Describe the Problem

3. Develop Interim Containment Actions (ICAs)

4. Define & Verify Root Cause

5. Choose & Verify Permanent Corrective Actions (PCAs) for Root Cause

6. Implement & Validate Permanent Corrective Actions (PCAs)

7. Prevent Recurrence8. Recognize Team & Individual

Contributions

Process Improvement1. Identify2. Scope3. Analyze4. Envision5. Implement6. Continue

Design for Six Sigma1. Identify

• The customer and specifications

2. Design• Translate the customer

specifications into functional requirements

3. Optimize• Using advanced statistical tools and

modeling to predict and optimize the design and performance

4. Validate• The design to ensure it meets all

customer requirements

Design for Six Sigma alternatives

DMEDI (PWC)1. Define

2. Measure

3. Explore

4. Develop

5. Implement

DCCDI (GE?)1. Define

• The project goals

2. Customer• Analysis is completed

3. Concept• Ideas are developed, reviewed and

selected

4. Design• Is performed to meet the customer and

business specifications

5. Implementation• Is completed to develop and

commercialize the product/service

Checkpoint

Where are we?

Checkpoint

What do we know?

Checkpoint

What methods and tools do we have?

• Easily identified – 5% to 8%

• Warranty, rejects, scrap, inspection rework

Cost of Poor Quality (Waste)

• Easily identified – 5% to 8%

• Warranty, rejects, scrap, inspection rework

• Less obvious – 15% to 20%

• Cycle times, lost sales, lost customer loyalty, late delivery, excess inventory, engineering change orders, late to market, more set-ups, …

= 25% of sales

Cost of Poor Quality (Waste)

The 7 Wastes

• Overproduction

• Waiting

• Transporting

• Inappropriate processing

• Unnecessary inventory

• Unnecessary motions

• Defects

N.B. 7W + 5S + 6 Sigma = Lean Six Sigma!

Plus the wastes of …

• Human potential

• Performance appraisal

• Excess energy / power consumption

• Pollution

• Space

• Unnecessary complexity

Business Excellence Model(from Baldridge, from Deming Award)

Quality Management Principles1. Customer focus

2. Leadership

3. Involvement of People

4. Process approach

5. Systems approach to management

6. Continual Improvement

7. Factual approach to decision making

8. Mutually beneficial Supplier relationships

ISO 9000:2000 Quality Standard

Hoshin Planning and The Balanced Scorecard

Strategies & Objectives Current Year Initiatives Enablers ResultsVision & Mission Strategic Initiatives Excellence Gaps Strategic Measures

Clarify Vision & Mission Identify Initiatives Generate organisation gapsGenerate measures for

objectives

Strategic ObjectivesGenerate measures for

initiatives

Clarify Objectives

Check Initiatives against objectives

Check gaps against measures and strategic

initiatives

Check initiative measures against strategic measures

STRATEGIC DIRECTION PERFORMANCE MEASUREMENT

Balanced Scorecard Development: Process Map

. .. .

Excitement(Unspoken)

PerformanceRequirements(Spoken)

Basics(Unspoken)

Customer Satisfaction and Quality Function Deployment

1. End Userse.g. consumer, user, service

2. Intermediate customerse.g. retailer, distribution, OEM

3. Internal customerse.g. executive, manufacturing

Most useful

Least useful

Leastheard

Most heard

Who is/are the customer(s)?

WHAT HOW HOW MUCH

Use QFD to Develop Targets and Tolerances for Y’s

• Institutionalised programme management process

• Management of timing, quality, cost………... & risk

• Dedicated programme manager & team

• Concurrent working

• Emphasis on up-front analysis, modelling & simulation

• Close relationship with the customer

• Is this new?

< 1 > < 2 > < 3 > < 4 > < 5 > < 6 > < 7 > < 8 >Customer

INPUTS QR KO CR DR SO PV J#1 PM

Advanced Quality Planning and Timing Milestones

Plan & DefineProduct Design & Development

Process Design & DevelopmentProduct & Process Validation

Advanced Quality Planning or New Product Development

• PLANNING• Voice of the Customer data, QFD• FMEA, Process Maps• SPC history, Warranty / Quality / Reliability indicators• Design of Experiments, Multivariate Methods

• PRODUCT DESIGN & DEVELOPMENT • Monte Carlo Simulation, Variation Simulation Analysis• FMEA, Fault Tree Analysis• Taguchi Methods, Design of Experiments, • RSM, Mixtures, Regression• Non-parametric methods• Reliability analysis / growth

AQP Tools & Techniques

• PROCESS DESIGN & DEVELOPMENT• FMEA, Process Maps

• Monte Carlo simulation, Design of Experiments, Regression

• SPC, Capability, Gauge R & r,

• Multivariate Methods, Operational Research

• PRODUCT & PROCESS VALIDATION• FMEA, Process Maps

• Taguchi Methods, Design of Experiments,

• RSM, Mixtures, Regression

• SPC, Capability, Monte Carlo simulation, OR

• PRODUCTION• Design of Experiments, SPC / Capability

• Mistake Proofing, Control Plans, 7 Basic Tools, Process Maps

AQP Tools & Techniques

Checkpoint

Where do we go from here?

Inputs Outputs

A Series of activities that transforms inputs into outputs

Customers

Process

Suppliers

Process Measurement

Process Mapping

• Understand the Customers

• Develop Hoshin Plans

• Customer Focussed QFD

• Identify Improvement Projects

• Projects Leaders

• Champions

• Projects

• Master Black Belts

• Black Belts

• Green Belts

• Yellow Belts

Translating Customer Requirements Into Key Y’s - outputs

Develop a strong Black Belt Community

Six Sigma Black Belts

Methods

Training Environment

Software

Statistical Software

Quality SoftwareFM

Statistical Methods

6 Quality Tools

Inter-Personal Skills

SPCDOE

Six Steps to Six Sigma Problem Solving

Consulting

Teamwork Leadership Involvement

Data Collection

Data Analysis

TQMDFM

Project Mgm

Team Building

Teaching

Statistical

t Skill

Quality StandardsCertification

Process Development

Process Improvement

Process Characterization

Leadership

ContinualImprovement

Quality Standards

Priority

Project Reviews

Curriculum.

Resources

Recognition / Reward

Empowerment

Statis

Problem Solving

Reduced Variation•

Satisfied Customers

Inter-Personal Skills

Increased ROI

Performance Excellence Minitab

Opportunities exist everywhere • Systems: streamline• New Product Development: simplify, improve• Processes: standardize• Services: share

Administrative Processes• Customer Complaints• Purchasing• HR – information support

Form:• Payment• Purchase Order• Travel

Deliveries:• OTIF

Six Sigma applications

Lean Six Sigma

What is Quality?

The goodness or excellence of any product, process, structure or other thing that an organisation consists of or creates.

It is assessed against accepted standards of merit for such things and against the interests/needs of producers, consumers and other stakeholders.

Smith, Journal TQM, 1993.

Holistic Quality – Holistic Improvement

• Institutionalised programme management process

• Management of timing, quality, cost………... & risk

• Dedicated programme manager & team

• Concurrent working

• Emphasis on up-front analysis, modelling & simulation

• Close relationship with the customer

< 1 > < 2 > < 3 > < 4 > < 5 > < 6 > < 7 > < 8 >Customer

AQP or New Product Development

AQP Reporting Format

Customer:

Product: QR KO CR DR SO PV J#1 PM

Gateway <1> <2> <3> <4> <5> <6> <7> <8>

Voice of the Customer

Plan and Define

Product Design & Development

Process Design & Development

Product & Process Validation

Feedback, Assessment & Corrective Action

Voice of the Process

Multiple Products, Multiple Systems

< 1 > < 2 > < 3 > < 4 > < 5 > < 6 > < 7 > < 8 >Customer

AQP Reports

Customer:

Gateway <1> <2> <3> <4> <5> <6> <7> <8>

Plan and Define

Customer:

Gateway <1> <2> <3> <4> <5> <6> <7> <8>

Plan and Define

Customer:

Gateway <1> <2> <3> <4> <5> <6> <7> <8>

Plan and Define

Customer:

Gateway <1> <2> <3> <4> <5> <6> <7> <8>

Plan and Define

Customer:

Gateway <1> <2> <3> <4> <5> <6> <7> <8>

Plan and Define

SYSTEM A

SYSTEM B

SYSTEM C

SYSTEM D

The Product Development System

1: Product Planning

2: Product Design & Development

3: Process Design & Development

4: Production Planning

5: Process Monitoring

Feedback

VOICE OF THE CUSTOMER

VOICE OF THE PROCESS

Apply Systems & Statistical Thinking

Use Six Sigma to Measure and Analyze the System

• What are the key repeated problems / opportunities across and within the Products?

• What are the key repeated problems in the Processes used in the Product Development?

• What are the System issues that are witnessed in the Products and Processes?

• What are the Leadership doing to improve the System?

• What Six Sigma Projects are the Leadership going to undertake to improve the System?

“If I had to reduce my message for management to just a few words, I’d say it all had to do with reducing variation.”

Deming’s message

“If I had to reduce my message for management to just a few words, I’d say it all had to do with reducing variation.”

“… statistics (statistical thinking) is a basic but comprehensive way of thinking and acting which combines information, opinion and common-sense for the better design of products, systems, strategies and decision making”.

Deming’s message

Define ImproveMeasure Control Control Critical x’s

Monitor y’s

Close Project

1 5 10 15 20

Upper Control Limit

Lower Control Limit

Phase Review

Analyse Characterise x’s

Optimise x’s

Set Tolerances for x’s Verify Improvement

15 20 25 30 35

LSL USL

Phase Review

y=f(x1,x2,..)

. . .. . . . . . . . . . .

Identify Potential x’s

Analyse x’s

Select Critical x’s

Phase Review

Run 1 2 3 4 5 6 7

1 1 1 1 1 1 1 12 1 1 1 2 2 2 23 1 2 2 1 1 2 24 1 2 2 2 2 1 15 2 1 2 1 2 1 26 2 1 2 2 1 2 17 2 2 1 1 2 2 18 2 2 1 2 1 1 2

Effect

Define Measures (y’s)

Evaluate Measurement System

Determine Process Stability

Determine Process Capability

Set Targets for Measures

15 20 25 30 35

LSL USL

Phase Review

Operational DMAIC Improvement Process

Requirements

Phase Review

Brainstorm Potential Improvement Strategies

Select Imp’t Strategy

Plan and Implement Pilot

Verify Improvement

Implement Countermeasures

Criteria A B C DTime + s - +Cost + - + sService - + - +Etc s s - +

15 20 25 30 35

LSL USL

Define ImproveMeasure ControlAnalyse

Transactional DMAIC Improvement Process

Develop y’s

Collect data

Validate data Establish Process

Stability Establish Process

Capability

Set targets for improvement

15 20 25 30 35

LSL USL

Phase Review

Develop Detailed Process Maps

Map the Ideal Process

Identify Critical Process Steps (X’s) by looking for:

– Process Bottlenecks

– Rework / Repetition

– Non-value Added Steps

– Sources of Error / Mistake

PROCESSSTEPS

DECISION

Phase Review

Develop and Implement Control Mechanisms for Critical x’s

Monitor Process Performance (y’s)

Identify Further Opportunities

Document

1 5 10 15 20

Upper Control Limit

Lower Control Limit

Phase Review Phase Review

Requirements

Phase Review

Leaders must focus on a structured approach (PDSA) by targeting:

• Statistical Thinking

• Six Sigma Methods

• Communication

• Teamwork

• Problem Solving (inc. TRIZ)

• Process Improvement, and

Systems Thinking!

To Achieve Continual Improvement

targeting design for 6 sigma

process outputs

process capability

process stability

structured process

process dfss

ideal process

process options

critical process steps

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