measure copyright six sigma innovations 2000 0 measure copyright six sigma innovations 2000 1 where...

Copyright Six Sigma Innovations 2000 1

MEASURE


MEASURE

Where Will Six Sigma Get Us?

• Everyone will be focused on their customers.

• Customer data and process metrics will drive decisions and actions.

• Business will operate at their process capability levels.

• New designs will be toleranced to known process capabilities.

• Strategic products and processes will be at Six Sigma.

• Teams will be rewarded for process improvement.


MEASURE

What is Six Sigma?

Tools and Tactics

Philosophy ofOperational Excellence

Business Strategy

Statistical Measure ofProcess Capability

Six Sigma


MEASURE

Operational Excellence

Sigma Level Spelling Errors

One Sigma 170 misspelled words per page in a book.

Two Sigma 25 misspelled words per page in a book.

Three Sigma 1.5 misspelled words per page in a book.

Four Sigma 1 misspelled word in 300 pages.

Five Sigma 1 misspelled word in a set of encyclopedias.

Six Sigma 1 misspelled word in all the books in a library.


MEASURE

Tools and TacticsMeasure

Analyze

Improve

Control

Learning about andapplication of Six Sigmaprinciples are driven byselected projects.

Projects are worked through these 4 main phases of methodology


MEASURE

Statistical Measure

• Product complexity demands Six Sigma process capability

A hypothetical jet engine has:

10CharacteristicsPer Operation

25Operations

Per Part

3000Parts PerDevice

750000Opportunities

for DefectsX X =

Defects per Device at:3 Sigma process capability = 50,105 Defects6 Sigma process capability = 2.6 Defects


MEASURE

Business Strategy

• Customers are demanding more.

• Competition is promising and doing more.

• We’re improving, but not fast enough.

• Poor quality can cost 20-30% of revenue.

• We need a breakthrough strategy.

Old BeliefHigh Quality=High Cost

New BeliefHigh Quality=Low Cost


MEASURE

The Challenge

Customer CTQ’s Customer CTQ’sCustomer CTQ’s

ManufacturingSuppliersTransactions

?What is (CTQ) for our

customers?

?What commitment,

strategy, and resourceswill you use to climb your mountains?


MEASURE

The Approach

• Six Sigma applies statistical tools to practical problems.

• Data-driven decision making is the key.

PracticalProblem

StatisticalProblem

StatisticalSolution

PracticalSolution

Low Yield ProcessOff Target

CenterProcess

Replace WornPart


MEASURE

A Statistical Problem• Six Sigma methodology identifies processes that are off-target, and/or have a high degree of variation, and corrects the process.

USLLSL USLLSL

Variation

CenterProcess

ReduceSpread

USLLSL

On-Target

Off-Target


MEASURE

The Focus

Y

F(X)

To get results, should we focus our behavior on Y or X?

Y• Dependent• Output

• Effect

• Symptom

• Monitor

X1…..XN

• Independent• Input-process

• Cause

• Problem

• ControlIf we are so good at X, why do we constantly test and inspect Y?


MEASURE

The Cookbook 1. Select CTQ Characteristic Y

2. Define Performance Standards Y 3. Validate Measurement System Y 4. Establish Product Capability Y

5. Define Performance Objective Y 6. Identify Variation Source X

7. Screen Potential Causes. X 8. Discover Variable Relationships Vital few X 9. Establish Operating Tolerance. Vital few X

10. Validate Measurement System. Vital few X 11. Determine Process Capability. Vital few X 12. Implement Process Control System. Vital few X

Phase I

Measurement(What)

Phase II

Analysis(What, Where, Why)

Phase III

Improvement(How)

Phase IV

Control(Sustain)

Focus


MEASURE

The Vision


MEASURE

IDEAS

SIX SIGMATools & Tactics

What makes Six Sigma Essential?

Success


MEASURE

Successful Deployment of Six Sigma at Any Company is like a Three-Spoke Wheel:

CEO

Champions

BlackBelts

Remove One of the Spokes...

…and theProgram Will Fail.


MEASURE

The 1st Spoke is the CEO

We Need Improvements!

Six Sigma will allow us to make the changes faster and

more efficiently!


MEASURE

The 2nd Spoke is the Champion or Sponsor

Sponsors remove barriers to improvement projects.


MEASURE

The 3rd Spoke is the Black Belt

The Black Belt Leads the Team to Completion Utilizing Tools from Six Sigma Training.


MEASURE

What’s Important?

• The Tactics Used

• The Recipe on How and When to Use the Tools.

• Document Bottom Line Savings.


MEASURE

Company Strategy


MEASURE

What is your company goal?

Management choice:

Lets run a few improvement projects.

OR

Lets achieve World Class Quality!


MEASURE

Responsibilities

CEO

All Employees Green BeltsManagement

Master Black Belts

Black Belts


MEASURE

ResourcesChampions Master Black Belts Black Belts Green Belt

QualificationsSenior Execs & Managers Techical Degree Techical Degree

Technical Degree or experience

Training Basic Skills

Advanced Six Sigma Training plus a one week "Train-the Trainer" Advanced Six Sigma Training

Basic Six Sigma Training

Duration One Week 4-1 week sessions plus 1 week 4-1 week sessions 1 week

Numbers 1 per site 1per 30 Black Belts 1 per 100 employees1 per 20 employees

Large Scale Deployment Requirements

Sponsors Master Black Belts - Consultants Black Belt / Green Belts

QualificationsSenior Execs & Managers

Certified Black Belts. Years of experience in implementation mentoring and instructing

Some technical ability. People skills. Desire to make a difference.

Training

Welcome to audit classses. Must be involved with projects. N/A

Application of Advanced Six Sigma Skills

DurationFrom now on… N/A 4 1/2 week sessions

Numbers

1 per department or business unit. N/A

Depending on company structure

Strategy for Small to Mid-Sized Scale Business


MEASURE

Initiate Change

• First we fix our problems.– Buy-in and follow-through.– Not just another project.– Get everyone thinking “outside of the box!”

• Re-design our processes.– Build six sigma quality into processes.


MEASURE

Shift from CTQ’s to a Few Vital Metrics

• As we realize our mistakes we can measure the X’s and not the Y’s.

• Normalize process capabilities.

• One common set of metrics to monitor the business.


MEASURE

Linking Company and Customer Needs

Customer Company

QualityLow Price

Quick Delivery

Market ShareIncreased Volume


MEASURE

How do we get Started?

• Executive Decision.

• Allocate Resources.

• Decide on “1st Wave” of Training.

• Execute “In-House” Training.

• Run projects.

• Measure Results.


MEASURE

The Tools


MEASURE

Measure Phase• Understand Environment

- Establish key contacts

- Tour process

- Identify process owner

- Identify team members.

• Bound the Project

• Identify Customer Requirements- Identify additional data Needs

• Create Process Map


MEASURE

Measure Phase• Define performance standards

- Gather / Pareto data

- Review Historical data

• Evaluate measurement system- Gage R&R

• Establish Product Capability- Calculate DPU

- Calculate Z st and Zlt

• Present results to Champions

and Operational Leaders


MEASURE

Analyze Phase

• Define performance objective for “Y”.

• Process Map– Identify variation sources.

• Identify X’s– Cause & Effect Diagram


MEASURE

Analyze Phase• Analyze data.

– Apply quality tools– Perform Hypothesis Tests.

• t-Tests• ANOVA

• Regression • Identify Vital X’s (Top 5)• Define additional data needs.• Present Results.


MEASURE

Improve Phase

• Review process map

• Develop new process flow

• Screen Potential Causes

• Identify Root Causes of variation

• Establish Operating Tolerances

• Identify Improvement Actions and Implementation Plan


MEASURE

Improve Phase• Develop Risk Assessment / Risk Abatement Plan

• Obtain buy-in / support for improvement actions

• Implement Improvements

• Collect & analyze data to validate improvement

• Communicate Improvements

• Present results to Champions and Operational Leaders


MEASURE

Control Phase• Issue Revised QCWIs /procedures where

applicable

• Revalidate Cause & Effect of X’s to Achieve Y’s

• Determine Process Capability

• Implement Control System

• Identify Follow-up Action Plan and Individuals Responsible


MEASURE

Control Phase

• Identify Opportunities for Standardization

• List Best Practices and Identify Lessons Learned

• Communicate Push leverage opportunities to process owners

• Hand off project to Process Owner

• Present results to Champions and Operational Leaders


MEASURE

Six Sigma Black Belt Project

Reduction of PressDowntime Due to Maintenance

May 11, 1998


MEASURE

695 400 485 575146514901660172524309677

3.4 1.9 2.4 2.8 7.1 7.2 8.1 8.411.847.0

100.0 96.6 94.7 92.3 89.5 82.4 75.2 67.1 58.8 47.0

20000

10000

0

100

80

60

40

20

0

Defect

MinutesPercentCum %

Per

cent

Min

utes

of D

ownt

ime

Pareto of Maintenance Downtime


MEASURE


MEASURE

1106010

700

600

500

400

300

200

100

0

Observation

Min

utes

of D

ownt

ime

0.9999 0.0001 7.000078.333361.0000

0.9918 0.008211.000059.9831

47.0000

Approx P-Value for Oscillation:Approx P-Value for Trends:Longest run up or down:Expected number of runs:

Number of runs up or down:

Approx P-Value for Mixtures:Approx P-Value for Clustering:Longest run about median:Expected number of runs:

Number of runs about median:

Run Chart for E.Manipulator Downtime by Day

3-28-98 to 4-13-9813day run fromShort Term Capability

Long Term Short Term

DPO=0.0953 DPO=0.0106Zlt=1.33 Zst=2.30


MEASURE

0 0 0

95351

0

20000

40000

60000

80000

100000

120000

Measure Analyze Improve Control

DP

MO

LSL Actual

LSL Predicted


MEASURE

Hydraulic leaks

Gage R&R ok

Dirt in oil

Maintenance ExperiencePreventative maintenance

Inspection Travel

Outside temperature

Downtime recording

Weight of billets

MachinesMen Method

Environment Materials Measurements

Oiler?

Machine capacity

Fittings Pipes

Hoses

East Manipulator Breakdown

Oil ineffective

Loss of trained men

Pumps Hoses

Rails Valves


MEASURE

1740 1350 839 635 250 185 170 130 220

31.5 24.5 15.2 11.5 4.5 3.4 3.1 2.4 4.0

31.5 56.0 71.2 82.7 87.2 90.6 93.7 96.0 100.0

0

1000

2000

3000

4000

5000

0

20

40

60

80

100

DefectMinutes

PercentCum %

Perc

ent

Min

ute

s

Causes for Mechanical Breakdown


MEASURE

Electric Leaks Pump/Motor Valves

0

100

200

300

400

Subgroups

Min

ute

s


MEASURE

125 130 135 140 145

LSL USL

Process Capability Analysis for oil temp

USL

Target

LSL

Mean

Sample N

StDev (ST)

StDev (LT)

Cp

CPU

CPL

Cpk

Cpm

Pp

PPU

PPL

Ppk

PPM < LSL

PPM > USL

PPM Total

PPM < LSL

PPM > USL

PPM Total

PPM < LSL

PPM > USL

PPM Total

120.000

*

100.000

136.370

27

3.40971

3.40841

0.98

-1.60

3.56

-1.60

*

0.98

-1.60

3.56

-1.60

0.00

1000000.00

1000000.00

0.00

999999.21

999999.21

0.00

999999.22

999999.22

Process Data

Potential (ST) Capability

Overall (LT) Capability Observed Performance Expected ST Performance Expected LT Performance

ST

LT


MEASURE

Machine• Oil Temperature New oil cooling system

• Oil breakdown Change oil on a monthly basisMonitor oil analysis monthly

Methods• PM Time Increase allotted PM time to allow

for major work to be conductedManpower

• Hydraulics training Training program being built

Environment• Dirt in oil Oil filtration system to be implemented

Oil filtered by outside contractor

Variation Control


MEASURE

95,351

77,287

16,912

2,129

0

20,000

40,000

60,000

80,000

100,000

120,000


DP

MO

Actual

Predicted


MEASURE

1/27/98 3/24/98 5/21/98 7/18/98

0

100

200

300

400

500

600

700

Date

Do

wn

tim

e


Equipment Rebuild

ElectricalProblems

Pipe Welded

East Manipulator Downtime per Day


MEASURE

Total ScheduledProduction Time

UnrecoverableTime Loss

Total PotentialUptime

E. ManipulatorDowntime

DPU DPMO FTY P(d) Z

Short Term 12,600 4,165 8,435 90 0.0107 10,700 98.94% 0.0106 2.30

Long Term 142,260 40,772 10,1488 9,677 0.0953 95,351 90.91% 0.0953 1.33

AnalyzePhase

54,640 14,731 41,909 3,165 0.0773 77,287 92.56% 0.0740 1.44

ImprovePhase

45,170 15851 29,269 495 0.0169 16,912 98.32% 0.0167 2.13

ControlPhase

Short Term 32,400 9,115 23,285 20 0.0009 859 99.91% 0.0009 3.14

Long Term 99,240 29,425 69,815 235 0.0033 3,366 99.66% 0.0033 2.71

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