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3. MEASURE Copyright Six Sigma Innovations 2000 1 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.

4. MEASURE Copyright Six Sigma Innovations 2000 2 What is Six Sigma? Tools and Tactics Philosophy of Operational Excellence Business Strategy Statistical Measure of Process Capability Six Sigma

5. MEASURE Copyright Six Sigma Innovations 2000 3 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.

6. MEASURE Copyright Six Sigma Innovations 2000 4 Tools and Tactics Measure Analyze Improve Control Learning about and application of Six Sigma principles are driven by selected projects. Projects are worked through these 4 main phases of methodology

7. MEASURE Copyright Six Sigma Innovations 2000 5 Statistical Measure Product complexity demands Six Sigma process capability A hypothetical jet engine has: 10 Characteristics Per Operation 25 Operations Per Part 3000 Parts Per Device 750000 Opportunities for Defects XX = Defects per Device at: 3 Sigma process capability = 50,105 Defects 6 Sigma process capability = 2.6 Defects

8. MEASURE Copyright Six Sigma Innovations 2000 6 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 Belief High Quality=High Cost New Belief High Quality=Low Cost

9. MEASURE Copyright Six Sigma Innovations 2000 7 The Challenge Customer CTQ’s Manufacturing SuppliersTransactions ? What is (CTQ) for our customers? ? What commitment, strategy, and resources will you use to climb your mountains?

10. MEASURE Copyright Six Sigma Innovations 2000 8 The Approach Six Sigma applies statistical tools to practical problems. Data-driven decision making is the key. Practical Problem Statistical Problem Statistical Solution Practical Solution Low Yield Process Off Target Center Process Replace Worn Part

11. MEASURE Copyright Six Sigma Innovations 2000 9 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 Center Process Reduce Spread USLLSL On-Target Off-Target

12. MEASURE Copyright Six Sigma Innovations 2000 10 The Focus Y F(X) To get results, should we focus our behavior on Y or X? Y Dependent Output Effect Symptom Monitor X 1 …..X N Independent Input-process Cause Problem Control If we are so good at X, why do we constantly test and inspect Y?

13. MEASURE Copyright Six Sigma Innovations 2000 11 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

14. MEASURE Copyright Six Sigma Innovations 2000 12 The Vision

15. MEASURE Copyright Six Sigma Innovations 2000 13 IDEAS SIX SIGMA Tools & Tactics What makes Six Sigma Essential? Success

16. MEASURE Copyright Six Sigma Innovations 2000 14 Successful Deployment of Six Sigma at Any Company is like a Three-Spoke Wheel: CEO Champions Black Belts Remove One of the Spokes... …and the Program Will Fail.

17. MEASURE Copyright Six Sigma Innovations 2000 15 The 1st Spoke is the CEO We Need Improvements! Six Sigma will allow us to make the changes faster and more efficiently!

18. MEASURE Copyright Six Sigma Innovations 2000 16 The 2nd Spoke is the Champion or Sponsor Sponsors remove barriers to improvement projects.

19. MEASURE Copyright Six Sigma Innovations 2000 17 The 3rd Spoke is the Black Belt The Black Belt Leads the Team to Completion Utilizing Tools from Six Sigma Training.

20. MEASURE Copyright Six Sigma Innovations 2000 18 What’s Important? The Tactics Used The Recipe on How and When to Use the Tools. Document Bottom Line Savings.

21. MEASURE Copyright Six Sigma Innovations 2000 19 Company Strategy

22. MEASURE Copyright Six Sigma Innovations 2000 20 What is your company goal? Management choice: Lets run a few improvement projects. OR Lets achieve World Class Quality!

23. MEASURE Copyright Six Sigma Innovations 2000 21 Responsibilities CEO All EmployeesGreen BeltsManagement Master Black Belts

24. MEASURE Copyright Six Sigma Innovations 2000 22 Resources

25. MEASURE Copyright Six Sigma Innovations 2000 23 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.

26. MEASURE Copyright Six Sigma Innovations 2000 24 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.

27. MEASURE Copyright Six Sigma Innovations 2000 25 Linking Company and Customer Needs CustomerCompany Quality Low Price Quick Delivery Market Share Increased Volume

28. MEASURE Copyright Six Sigma Innovations 2000 26 How do we get Started? Executive Decision. Allocate Resources. Decide on “1st Wave” of Training. Execute “In-House” Training. Run projects. Measure Results.

29. MEASURE Copyright Six Sigma Innovations 2000 27 The Tools

30. MEASURE Copyright Six Sigma Innovations 2000 28 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

31. MEASURE Copyright Six Sigma Innovations 2000 29 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

32. MEASURE Copyright Six Sigma Innovations 2000 30 Analyze Phase Define performance objective for “Y”. Process Map –Identify variation sources. Identify X’s –Cause & Effect Diagram

33. MEASURE Copyright Six Sigma Innovations 2000 31 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.

34. MEASURE Copyright Six Sigma Innovations 2000 32 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

35. MEASURE Copyright Six Sigma Innovations 2000 33 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

36. MEASURE Copyright Six Sigma Innovations 2000 34 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

37. MEASURE Copyright Six Sigma Innovations 2000 35 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

38. MEASURE Copyright Six Sigma Innovations 2000 36 Six Sigma Black Belt Project Reduction of Press Downtime Due to Maintenance May 11, 1998

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43. MEASURE Copyright Six Sigma Innovations 2000 41 Hydraulic leaks Gage R&R ok Dirt in oil Maintenance Experience Preventative maintenance Inspection Travel Outside temperature Downtime recording Weight of billets MachinesMenMethod EnvironmentMaterialsMeasurements Oiler? Machine capacity Fittings Pipes Hoses East Manipulator Breakdown Oil ineffective Loss of trained men Pumps Hoses Rails Valves

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47. MEASURE Copyright Six Sigma Innovations 2000 45 Machine Oil TemperatureNew oil cooling system Oil breakdownChange oil on a monthly basis Monitor oil analysis monthly Methods PM TimeIncrease allotted PM time to allow for major work to be conducted Manpower Hydraulics trainingTraining program being built Environment Dirt in oilOil filtration system to be implemented Oil filtered by outside contractor VariationControl

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