Chapter 2 Six Sigma Installation

Six Sigma Leadership Provides vision, direction, inspiration, and support Planning, budgeting, organizing, staffing, directing, coaching, controlling, and reporting

Deployment Planning Encourage executive management to own Six Sigma and link it with their business strategy. Define stretch goals and quality metrics. Establish common approaches for issues such as training and selection of people. Capture and share knowledge. Deploy methods to build and maintain momentum

Deployment Planning Executive Management Project Team All employees Owns vision, direction Integration, results Leads change Project specific(PT) All employees 6 Analyst Line Mgmt Understands vision Applies concepts to job Owns process Implements solutions Leads process Helps Black Belts(PT) Master Black Belts Black Belts Trains & coaches Black Belts & 6 Analysts (FT) Trains & coaches project teams (FT)

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Tools for Six Sigma - Define Business case Project desirability matrix Problem objective – problem statement Inferential statistics Primary / Secondary metrics Voice of customer Process mapping

Tools for Six Sigma - Measure XY matrix Process analysis & FMEA Data collection methods Data integrity & accuracy Basic statistics Common distributions Central-limit theorem Sampling distribution of mean Decision making Non-normal data Graphical: cause-effect diagram, check sheets, time-series charts, control charts, flowcharts Graphical data analysis Pareto chart Histogram Scatter diagram Boxplot Measurement system (Gage) analysis Process capability assessment

Tools for Six Sigma - Analyze Graphical data analysis Multivariable analysis Inferential statistics Confidence intervals Sample size Hypothesis tests t tests Test for equal variance Chi-square test Proportion Correlation Regression – simple and multiple Measure model relationships Between variables Binary logistics Process modeling and simulation

Tools for Six Sigma - Improve Hypothesis tests ANOVA Nonparametric tests Contingency tables Design of experiments(DOE) Terminology Plan & organize experiment Design principles One factor Full factorial Two-level factorial Response surface methodology Steepest ascent/descent Advanced regression Design for Six Sigma Robust design & process Functional requirements Noise strategies Tolerance design Tolerance and process capabilityFull factorial Two-level factorial Pilot and tests

Tools for Six Sigma - Control Solution selection Solution implementation Mistake proofing Visible enterprise Control plans Human resources/training Documentation Monitoring Response systems & structures Control charts Theory, objective Variable selection Rational subgrouping Selection/application Analysis Moving average Hypothesis tests Process capability assessment Best practice Sharing/translation

Performance Metrics Must have a meaningful, valid and reliable scale (frequency of occurrence, number of defects, $) Must have a standard or goal Compensation and other forms of recognition must be related to the performance goal for the metric Should be reviewed on a regular basis throughout the organization. Should be capable of being pooled horizontally and vertically within the enterprise must be highly correlated with one or more of the 12 criteria for performance metrics at the business, operations, and/or process level of the organization.

12 Criteria for Performance Metrics Aligned Owned Predictive Actionable Minimal/Few in number Simple/Easy to understand Correlated/Balanced and Linked Transformative Standardized Contextual/Context driven Reinforced Validated/Relevant

Design for Six Sigma (DFSS) Principles DFSS focuses on reducing risk attributable to the design of a product, service, system, process, transaction, activity, or event. Reduction in the relative number of risk opportunities and consequential exposures inherent in the functional performance and physical attributes of a design (customer satisfaction issues) Reduction of the relative number of risk opportunities and consequential exposures associated with the "processing viability" of a design (provider satisfaction issues)

Processing for Six Sigma (PFSS) Principles PFSS is concerned with reducing the value-related risk from the ongoing operation of systems, processes and supporting activities. Objective is to reduce the consequences of a risk exposure PFSS is used to improve process capability, cycle time, labor cost, inventory, and material cost. The goal is to exercise the breakthrough strategy to the extent that each value opportunity related to the operation of a system or process experiences no more than 3.4 risk consequences per million value opportunities

Managing for Six Sigma (MFSS) Principles MFSS is concerned with the creation, installation, initialization, and utilization of deployment plans, reporting systems, and implementation processes that support DFSS and PFSS. The ultimate goal of MFSS is to attain best-in-class business performance by improving the operational capability and capacity of an organization at an annualized rate of approximately 78% (Six Sigma learning curve)