1.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 1 Chapter 13 Six-Sigma Management and Lean Tools

2.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 2 Strategic Quality Planning Six-Sigma Management and Lean Tools Chapter 13  What is Six-Sigma?  Organizing Six-Sigma  DMAIC overview  DMAIC phases  The Taguchi method  Design for Six-Sigma  Using Six-Sigma from a contingency perspective

3.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 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.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 4 Strategic Quality Planning Six-Sigma Management and Lean Tools What is Six-Sigma * ppm = Parts Per Million Sigma LevelLong-term ppm* defects 1691,462 2308,538 366,807 46,210 5233 63.4

5.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 5 Strategic Quality Planning Six-Sigma Management and Lean Tools What is Six-Sigma Six-Sigma is … designed to handle the most difficult quality problems. % Quality ProblemsTechniques 90%Basic tools of Quality < 10%Six-Sigma < 1%Outside specialists

6.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 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.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 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.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 8 Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Overview  Stands for :  Define  Measure  Analyze  Improve  Control

9.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 9 Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases  Define  Four Phases: 1. Develop the business case 2. Project evaluation 3. Pareto analysis 4. Project definition

10.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 10 Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases  Define  Developing the Business Case: 1. Identify a group of possible projects 2. Writing the business case 3. Stratifying the business case into problem statement and objective statement

11.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 11 Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases  Define  RUMBA is used to check the efficacy of the business case 1. Realistic 2. Understandable 3. Measurable 4. Believable 5. Actionable

12.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 12 Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases  Measure  Two major steps: 1. Select process outcomes 2. Verifying measurements

13.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 13 Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases  Measure  Two major steps: 1. Select process outcomes  Tools Used:  Process may  XY matrix  FMEA  Gauge R&R  Capability Assessment.

14.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 14 Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases  Measure  Two major steps: 2. Verifying measurements  Tools Used:  Use gauges, calipers and other tools.  Management System Analysis (MSA) is used to determine if measurements are consistent

15.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 15 Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases  Measure  Two major steps: 2. Verifying measurements  Gauge R&R  Most commonly used MSA  Determine the accuracy and precision of your measurements

16.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 16 Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases  Analyze  Three major steps: 1. Define your performance objectives (X’s) 2. Identify independent variables 3. Analyze sources of variability

17.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 17 Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases  Analyze  Three major steps: 1. Define your performance objectives (X’s) Identify the independent variables where data will be gathered Process maps, XY matrices brainstorming and FMEA’s are the tools used

18.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 18 Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases  Analyze  Three major steps: 1. Analyze sources of variability Use visual and statistical tools to better understand the relationships between dependent and independent variables

19.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 19 Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases  Improve  Off-line experimentation  ANOVA  Taguchi

20.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 20 Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases  Control  Manage the improved processes using control charts

21.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 21 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  Parameter Design  Tolerance Design

22.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 22 Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi method  The Taguchi Method provides: 1. A basis for determining the functional relationship between controllable factors

23.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 23 Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi method  The Taguchi Method provides: 2. A basis for determining the functional relationship between controllable factors

24.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 24 Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi method  The Taguchi Method provides: 3. A procedure for examining the relationship between random noise … and product or service variability

25.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 25 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

26.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 26 Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi method  The Taguchi Process 1. Problem identification 2. Brainstorming session 3. Experimental design 4. Experimentation 5. Analysis 6. Confirming experiment

27.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 27 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 1. DMADV 2. IDOV

28.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 28 Strategic Quality Planning Six-Sigma Management and Lean Tools Design for Six-Sigma (DFSS)  Used in designing new products with high performance  DMADV 1. Design 2. Measure 3. Analyze 4. Design 5. Verify

29.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 29 Strategic Quality Planning Six-Sigma Management and Lean Tools Design for Six-Sigma (DFSS)  Used in designing new products with high performance  IDOV 1. Identify 2. Design 3. Optimize 4. Verity

30.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 30 Strategic Quality Planning Six-Sigma Management and Lean Tools failure Six-Sigma from a Contingency Perspective  Reasons for Six-Sigma failure: 1. Lack of leadership by champions 2. Misunderstood roles and responsibility 3. Lack of appropriate culture for improvement

31.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 31 Strategic Quality Planning Six-Sigma Management and Lean Tools failure Six-Sigma from a Contingency Perspective  Reasons for Six-Sigma failure: 4. Resistance to change and the Six-Sigma structure 5. Faulty strategies for deployment 6. Lack of data

32.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 32 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

33.  Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13- 33 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.