1. Barry Murash MBBit Nortel 2007
DMAIC – An Overview
Barry Murash MBBit
Nortel
2007

2. 6 Sigma Evolution… Where did it come from…
A continuation of the overall TQM (Total Quality Management) concept of “continual improvement” of a process originally introduced by the “Quality Guru’s” …Deming…Juran…Crosby…Taguchi.
Conceptualized and formally introduced by Motorola in the mid 1980’s as a quality goal required because technology was becoming so complex that the traditional ideas about acceptable quality levels were inadequate.
In 1989 Motorola announced a five-year goal – a defect rate of not more than 3.4 parts per million – or 6 Sigma on its key processes.

3. By the Numbers . . . Fortune 500 companies doing Lean Six Sigma 100
Dollars returned compared to dollars invested 8:1
Benefits as a percent of revenue for top companies 5
$1B KO only - Additional $2.3-$3.9B potential within the Bottling System

4. Six Sigma: Measure of Process Capability
Sigma (“”) is a measure…
6 Process output = 3.4 Defects per Million Opportunities 6 5 4
Defective 3
* DPMO = Defects per million opportunities 2
Process Output (Variation) 1
Motorola developed the Six Sigma methodology in the mid-1980s
Six Sigma has evolved from a set of statistical process control tools to a framework for managing a business end-to-end.
Six Sigma focuses on understanding what the Customer wants (value added), and then focuses on rigorously improving performance:
Reduce process variation
Ensure the process will meet the Customer’s expectations.
Sigma (“”) is a measure of process variation.
The Sigma level indicates the amount of process output that meets the Customer’s expectations.
The higher the Sigma level, the less variation there is in the process, and the Customer is more satisfied.
The Sigma level relates to the number of defects created in one million opportunities.
EXAMPLE: What if the Customer expects a proposal response within 48 hours?
If we are at 2 capabilities then 31 responses out of every 100 proposals will exceed 48 hours.
If we are at 3 capabilities then 7 responses out of every 100 proposals will exceed 48 hours.
If we are at 6 capabilities then only 4 responses out of 1 million proposals will exceed 48 hours.
FOR TEAM DISCUSSION:
Where do you think we are operating in our current functional process? (Most companies are operating at 3-4 Sigma levels.)
What should we be measuring to know we are meeting Customer expectations?
Customer Expectation
…that focuses on the variation of the process output

5. A Structured Framework
Tell us what’s important
- Focus -
Helps us fix the problem
- Improve -
Top-Level Indicators
Problem Solving (DMAIC)
Closing
Performance
Gaps
Aligning the
Organization
Managing
Processes
DEFINE
the project
boundaries
Define
Measure
Analyze
Improve
Control
MEASURE
the defects
and
where
they occur
in the
process
ANALYZE
why
the
defects
occur and
verify
which
reasons are
root causes
IMPROVE
performance by
implementing
solutions
that eliminate
root cause(s)
CONTROL
the process by
monitoring
upstream to
ensure the
problems stay
fixed
Vision
Tell us what’s not working
- Measure -
Process (Re) - Design (DMADV)
Process Management Control Systems
DEFINE
the project
opportunity
and
boundaries
Define
Measure
Analyze
Design
Validate
MEASURE
and prioritize
customer
requirements
(CTQs)
ANALYZE
alternative
high level
process
design
against
CTQs
DESIGN
optimize the
detailed
process flow
supporting
the high level
selected
VALIDATE
that the
design meets
and achieves
performance
objectives
To instill process discipline & fact-based decisions

6. DMAIC – An Iterative approach
Define
Measure
Analyze
Improve
Control
Team Charter
Process Mapping
Defining CTQs
SIPOC
Measure process
Performance
Measure CTQs
Determine baseline
sigma level
Identify & Quantify
root causes
Use various
statistical and
analytical tools,
identify low hanging
fruit
Select, design &
Implement solution
Institutionalize
Improvements
Implement ongoing
Controls
Standardize process

7. DEFINE at a Glance
To define the customer, their CTQs, the team charter, and map the core business process
Identify Business Opportunity/Gap ($)
Identify Outcome Indicators
Select Resources (% Time) and Charter Project
Select measures that link process performance to problem area related to CTQ
Shows need for improvement
Identify Customer’s Critical To Quality (CTQ) Attributes
Develop Preliminary Problem Statement
Map High Level Processes and Set Boundaries
Assess Financial $ Impact (COQ)
Prepare Communication & Project Plans

8. MEASURE at a Glance To measure the process performance Create Detailed
Process Map
Develop Data Collection Plan
Assess Process Performance
Set Process Performance / $ Improvement Goal
Collect Data
Stratify Data
Identify Value Added & Non-Value Added Steps
Develop Final Problem Statement
Customer
Calculate Performance
Plot Defect Data Over Time

9. Brainstorm and Organize Potential Causes
ANALYZE at a Glance
To analyze the data and the process map to determine root causes and opportunities for improvement
Brainstorm and Organize Potential Causes
Confirm Root Causes
Root
Cause and Effect Diagram
Root
Cause
Cause 1
Sub Sub Cause 1
Sub Sub Cause
Sub Sub Sub
Sub Sub Sub
Sub
Cause
Sub
Cause
Cause
Sub
Cause
Sub
Cause and Effect Diagram
Cause
Final Problem Statement
Final Problem Statement
Sub Sub
Sub Sub
Cause
Cause
Cause
Sub
Sub
Cause
Cause
Sub Cause
Sub Sub Cause
Sub Cause
Sub Sub Cause
Sub
Sub
Cause
Cause
Root
Sub Sub Cause
Root
Sub Sub Cause
Cause
Cause 2 2
Verify Potential Causes with Data 5
Made the Sale
Did Not Make the Sale
Time With Customer
(in minutes) 10 15 20 25 30 3 40 45 50 55 60
>60
Did Not
Make the Sale
Stratified Frequency Plots
Contingency Table
Sub Cause
Yes No
Present
Not
Defect
Scatter Plots Y X

10. IMPROVE at a Glance } To generate, select, and implement improvements
Identify and Select Solutions
Conduct Risk Analysis
Develop Pilot Plan
Update Outcome Indicators
Gantt Chart
FMEA
Solution Selection Matrix
Cost
Action
Problem
Root Causes
Solutions
Effectiveness
Ease to Implement
Total Score
Specific Tasks
Item or
Process
Step
Potential
Failure
Mode
Effect (s)
of Failure
Cause(s)
Current
Controls
RPN
Recommended
Action
Responsibility
and
Target Date
Action Taken
Severity
Occurrence
Detection
“After”
Total Risk Priority Number =
Risk Priority Number =
Before
After
IMPROVE changes
implemented }
Improvement
Good
Time
DEFINE
Before
Before
After
After
Good
3.6s
3.2s
IMPROVE changes
implemented }
Improvement
Time
Time
Conduct Cost/Benefit Analysis
Develop Action Plan For Full Implementation
Quantify Pilot Results
Updated Pareto Chart
Cost/Benefit Analysis
Approval from Finance
Cost
Benefit
Solution (s) / Specific Task (s) ____________________________
Problem Statement ________________________________________ :
Task / Project
Who
Due Date
Status
Before
After
1.3 s A1 A2 A3 A4 }
Improvement
3.1 s
50%
25%
75%
100%

11. CONTROL at a Glance CONTROL: Story Components
To institutionalize the improvement and implement ongoing monitoring
CONTROL: Story Components
To institutionalize the improvement and implement ongoing monitoring
Develop and Document Standard Practices
Train Personnel
Train Personnel
Verify Cost/Benefit
Develop and Document Standard Practices
Training Curriculum
Training Manual
Cost/Benefit Analysis
Approval from Finance
Standard Practice
Training Curriculum
Training Manual
Standard Practice
Fully Implement Solutions and PMCS
Fully Implement Solutions and PMCS
Close Project and Celebrate
“X” Upstream Indicators
UCL
LCL
“Y” Outcome Indicators
Good
“X” Upstream Indicators
UCL
LCL
“Y” Outcome Indicators
Good
Build the
Process Management Control System
Replicate Projects at Other Locations
Build the Process Management Control System
Verify Cost/Benefit
Cost/Benefit
Finance Approval
Close Project and Celebrate
Replicate Projects at Other Locations