1. Six-Sigma Management and Lean Tools
Chapter 13
Six-Sigma Management and Lean Tools

2. Strategic Quality Planning Six-Sigma Management and Lean Tools Chapter 13
What is Six-Sigma?
Organizing Lean Six-Sigma
DMAIC Overview
DMAIC Phases
The Taguchi Design of Experiments
Design for Six-Sigma
Lean Six-Sigma from a Contingency Perspective

3. Strategic Quality Planning Six-Sigma Management and Lean Tools What is Six-Sigma?
Sigma () is a greek letter used to designate a standard deviation (SD) in statistics
Six refers to the number of SD’s from the specialized limit to the mean.
Six-Sigma: about 0.5% of products will not meet specification

4. * ppm = Parts Per Million
Strategic Quality Planning Six-Sigma Management and Lean Tools What is Six-Sigma?
Sigma Level
Long-term ppm* defects 1
691,462 2
308,538 3
66,807 4
6,210 5
233 6
3.4
* ppm = Parts Per Million

5. Strategic Quality Planning Six-Sigma Management and Lean Tools What is Six-Sigma?
Six-Sigma effectiveness

6. Strategic Quality Planning Six-Sigma Management and Lean Tools Organizing Six-Sigma
The key players
Champion. Work with black belts to identify possible projects
Master Black Belts. Work with and train new black belts
Black Belts. Committed full time to completing cost-reduction projects
Green Belts. Trained in basic quality tools

7. Strategic Quality Planning Six-Sigma Management and Lean Tools Organizing Six-Sigma
In a company with 100 employees there might be:
One black belt
Sixty green belts
Some companies have yellow belts, employees familiar with improvement processes

8. Strategic Quality Planning Six-Sigma Management and Lean Tools Organizing Six-Sigma
Lean-Six Sigma
Pull production
Value-stream map

9. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Overview

10. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Define- projects are identified and selected
Four Phases:
Developing the business case
Project evaluation
Pareto analysis
Project definition

11. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Define
Developing the Business Case:
Identifying a group of possible projects
Writing the business case
Stratifying the business case into problem statement and objective statements

12. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Define
RUMBA is used to check the efficacy of the business case
Realistic
Understandable
Measurable
Believable
Actionable

15. Project Risk and Return Matrix

16. Pareto Analysis

17. Problem Definition

18. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Measure
Two major steps:
Selecting process outcomes
Verifying measurements

19. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Measure
Two major steps:
Select process outcomes
Tools used:
Process map
XY matrix
FMEA
Gauge R&R
Capability Assessment.

20. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Process Map

21. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
XY Matrix

22. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
XY Matrix for Example 13-3

23. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Solution for Example 13-3

24. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Measure
Two major steps:
Verifying measurements
Tools Used:
Use gauges, calipers and other tools.
Management System Analysis (MSA) is used to determine if measurements are consistent

25. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Measure
Two major steps:
Verifying measurements
Gauge R&R
Most commonly used MSA
Determine the accuracy and precision of your measurements

26. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Gauge R&R in Excel

27. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Analyze
Three major steps:
Define your performance objectives
Identify independent variables (X’s)
Analyze sources of variability

28. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Analyze
Three major steps:
Define your performance objectives
Capability Analysis
Identify the independent variables where data will be gathered
Process maps, XY matrices brainstorming and FMEA’s are the tools used

29. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Capability Analysis

30. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Analyze
Three major steps:
Analyze sources of variability
Use visual and statistical tools to better understand the relationships between dependent and independent variables
Include histograms, box plots, scatter plots, regression analysis, and hypothesis tests

31. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Improve
Off-line experimentation
ANOVA
Taguchi Method

32. Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases
Control
Manage the improved processes using control charts and implementing control plans

33. Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method
Design of Experiment (DOE)
Robust Design
Concept Design
Parameter Design
Tolerance Design

34. Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method
Design of Experiment (DOE)
Robust design - designed so that they are inherently defect free
Concept Design - examining competing technologies
Parameter Design- selection of control factors and the determination of optimal levels for each of the factors
Tolerance Design- developing specification limits

35. Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method
The Taguchi Method provides:
A basis for determining the functional relationship between controllable design factors and the outcomes of a process

36. Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method
The Taguchi Method provides:
A method for adjusting the mean of a process by optimizing controllable variables

37. Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method
The Taguchi Method provides:
A procedure for examining the relationship between random noise … and product or service variability

38. Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method
Classic QC- Step Function

39. Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method
Taguchi Quadratic Loss Function

40. Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method
The Taguchi Process

41. Example 13-6 Results

42. Strategic Quality Planning Six-Sigma Management and Lean Tools Design for Six-Sigma (DFSS)
Used in designing new products with high performance
Instead of DMAIC
DMADV
IDOV

43. Strategic Quality Planning Six-Sigma Management and Lean Tools Design for Six-Sigma (DFSS)
Used in designing new products with high performance
DMADV
Design
Measure
Analyze
Verify

44. Strategic Quality Planning Six-Sigma Management and Lean Tools Design for Six-Sigma (DFSS)
Used in designing new products with high performance
IDOV
Identify
Design
Optimize
Verify

45. Strategic Quality Planning Six-Sigma Management and Lean Tools Six-Sigma from a Contingency Perspective
Reasons for Six-Sigma failure:
Lack of leadership by champions
Misunderstood roles and responsibilities
Lack of appropriate culture for improvement

46. Strategic Quality Planning Six-Sigma Management and Lean Tools failure Six-Sigma from a Contingency Perspective
Reasons for Six-Sigma failure:
Resistance to change and the Six-Sigma structure
Faulty strategies for deployment
Lack of data

47. Strategic Quality Planning Six-Sigma Management and Lean Tools Summary
The process for Six-Sigma is define, measure, analyze, improve and control
Keys to Six-Sigma success are skilled management, leadership and long-term commitment

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Printed in the United States of America.