2013 - 10 - 12 Six Sigma An Overview - Students

1
Module 1- Six Sigma: An Overview
Dr. Mazen Arafeh, CSSBB, BSCM, EFQM
SIX SIGMA
INTRODUCTION
Dr. Mazen Arafeh CSSBB
Lean Six Sigma Awareness

1
2
3
4
5
6
7
What is LSS?
I have heard about LSS
I have read about LSS
I have attended some LSS training
I have used some LSS tools
I have lots of experience with LSS
I know everything about LSS
What is SS: Higher Standards for

Higher Performance
Business philosophy
Metric
Methodology
Tools
What is SS: Business philosophy
Focusing on continuous improvement
Understanding customer s needs (VOC)
Emphasizing on financial result (VOB)
Analyzing business processes (VOP)
Instituting proper measurement methods
Data driven decisions
Business Process Management
Formal support and active involvement
What is SS: Metric
Measurement used to assess process performance and

the results of improvement efforts
A way to measure quality
Universal Scale
A standard of excellence (3.4 defects per million

opportunities)
What is SS: Methodology
A scientific and practical method to achieve

improvements in a company
Define
Structured approach
Control
Act
Plan
Check
Do
Assuming quantitative data
Define
Measure - the process current state
Analyze - determine Root Cause or Y= f (x)
Improve
- eliminate waste and variation
Control
- evidence of sustained results
- the business opportunity
Improve
Measure
Analyze
Six Sigma Companies
Dr. Mazen Arafeh, CSSBB, BSCM,

EFQM
Six Sigma Companies

Six Sigma applies to all company
operations, including business
transactions, services, product
development, and manufacturing

processes.
EFQM
10
Six Sigma
Whats in a name?
Example: Measuring Process Performance

The pizza delivery example. . .
11
Customers want their pizza

delivered fast!
Guarantee = 30 minutes or less
What if we measured performance and found an

average delivery time of 23.5 minutes?
On-time performance is great, right?
Our customers must be happy with us, right?
Sigma s
12
The Greek letter sigma s is a mathematical term that simply

represents a measure of variation:
The distribution or spread around the mean of any process or

procedure in manufacturing, engineering, services, or transactions.
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0.00
10
15
20
25
30
35
40
45
What does variation mean?
Variation means that a

process does not produce
the same result (the Y)
every time.
20
15
10
-5
Every human activity has

Variability... (Some variation will exist in all processes)
-10
Variation directly affects customer experiences.
Customers do not feel averages!

EFQM
13
14
0.14
Narrow Variation
Wide Variation
0.12
0.10
0.08
0.06
0.04
0.02
0.00
10
15
20
25
30
35
40
45
m
The variation in a process refers to how tightly all the various outcomes are clustered around the
average. No process will produce the EXACT same output each time.
Exercise
15
What does variation mean to you?
How does it affect you? Others?

Customer
Supplier
Example: Measuring Process Performance

The pizza delivery example. . .
16
Customers want their pizza

delivered fast!
Guarantee = 30 minutes or less
What if we measured performance and found an

average delivery time of 23.5 minutes?
On-time performance is great, right?
Our customers must be happy with us, right?
How often are we delivering on time?

Answer: Look at the variation!
0.07
0.06
0.05
0.04
30 minutes or more
0.03
0.02
0.01
0.00
x 25
30
Managing by the average doesnt tell the whole story. The average
and the variation together show whats happening.
EFQM
17
Reduce Variation to Improve Performance

How many standard
deviations can you
fit within
customer
expectations?
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00
30 minutes or more
x
25
30
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NORMAL DISTRIBUTION - PROPERTIES

19
If we know the average (m) and variation (s) of normal

distribution then we can explain every thing of the
distribution or process:
68.26% of the values line within m 1 s from the mean

NORMAL DISTRIBUTION IS CHARACTERISED BY A BELL
SHAPED CURVE.
What is Six Sigmaas a Measure?

The probability of creating a defect can be estimated and translated
into a Sigma level.
*LSL Lower Spec Limit

*USL Upper Spec Limit
-6
-5
-4
-3
-2
-1
+1
+2
+3
+4
+5
+6
The higher the sigma level, the better the performance. Six Sigma refers to a process having 6
Standard Deviations between the average of the process center and the closest specification
limit or service level.
20
10
What is Six Sigma?

Mean
Specification
Limit
Some
Chance of
Failure
1s
3s
6s
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What is Six Sigma?

Mean
Specification
Limit
Some
Chance of
Failure
1s
The higher the Sigma,

the lower the chance of
producing a defect
3s
Much Less
Chance of
Failure
1s
6s
22
11
Reducing variation
is the key to reducing defects
What is Six Sigma?

Mean
The term Six Sigma refers
to a productSpecification
or
process that
Limit
Some
produces only three defects (or errors) out of

every
Chance
of
Failure
1s
million opportunities.
The higher the Sigma,
the lower the chance of
producing a defect
3s
Much Less
Chance of
Failure
1s
6s
23
Reducing variation
is the key to reducing defects
What is a defect?
24
Any failure of a product or process to meet

customer requirements.
Exercise:
Think of defects in your area of expertise.
12
25
Customer Requirements = Internal Specifications

Customer requirements may or may not be expressed
accurately as internal specifications, so a product or
process might meet specifications but still be defective in
the customer's mind.
26
One of the critical lessons of Lean Six Sigma is that

important activities should be measured.
For a student, the academic performance is

measured by test scores.
The score is a measurement, or metric, that

communicates how well each student is performing.
13
Basic SS Metrics
27
Defects metrics
Sigma Quality Level (SQL)
Process Capability Indices
Cycle Time
Definitions
A unit:
The product, information, service, , used or purchased by a

customer.
Is observable and countable. It has a discrete start and stop point.
It is an individual measurement and not an average of

measurements.
Example:
28
14
Invoice, Blood test, Report, etc
Traditionally units are classified: Good or Bad

Definitions (cont.)
Defective:
A bad part or product
Defect:
Something that does not conform to a known and accepted

customer standard
Things wrong within a product
Number of things wrong within a product
29
Defectrelated metrics
1.
Defective units
AKA: defectives
Which are counted as (1) regardless of how many defects

there are on a given unit
2.
Defects per unit of production,
30
15
Where there may be multiple defects on any given unit.
Yield
First Time Yield (FTY)

Number of good units produced
The number of units entering the process
Proportion
%
of units going through the process
of units that meet specifications
31
Yield
First Pass Yield (FPY)


Proportion
of units going through the process correctly the
first time
%
of units that meet specifications without any rework or
repair.
32
16
75 units
Example
Yes
100 units
80 units
Pass?
Process A
No
Rework
Scrap
20 units
33
FTY = 80 100= 80%

Dr. Mazen Arafeh,
CSSBB, BSCM, EFQM
FPY = 75 100=
75%
5 units
Hidden Factory
Hidden Factory
Adds no value to the customer
Involves fixing things that werent dont right the first

time
34
17
Example:
Parts are treated in 3 Steps
Operation A Yield: 90 %
Operation B Yield: 98%
Operation C Yield: 95%
35
Rolled Throughput Yield

A:
90 %
B:
98%
C:
95%
PARTS IN
150
B
135
Y = 90%
C
132
Y = 98%
PARTS OUT
126
Y = 95%
THE TOTAL PROCESS YIELD= 0.9*0.98*0.95= 0.84 or 84%

36
18

Rolled Throughput Yield:
the probability of being able to pass a unit
of product or service (or Patient) through the
entire process defect-free
PARTS IN
150
B
135
Y = 90%
C
132
Y = 98%
PARTS OUT
126
Y = 95%
THE TOTAL PROCESS YIELD= 0.9*0.98*0.95= 0.84 or 84%

37
Parts Per Million

38
PPM = Parts Per Million

PPM traditionally reflects the number of defectives
produced.
Defective rate per Million (DPM)
19
Example 1
39
Consider a company that provides an order entry service.

If the company enters 1000 orders and 100 orders are
entered incorrectly.
What is the 1) Yield 2) PPM or DPM
Solution
Yield=
PPM =

900
1000
= 90%
Total number of defectives

1, 000, 000
Total number of items
PPM =
100
1, 000, 000 =100, 000PPM
1, 000
Defects per unit of production
40
20
Defectives simply classifies the unit bad
Doesnt matter how many defects there are
The invoice is wrong, causes are unknown
Defect
A nonconforming element on a unit
An element outside its specified limits
A CTQ that does not meet the specified standards

Defects Per Unit & Rolled Throughput Yield

DPU=
Total number of defects

Total number of products produced
The probability of being able to pass a unit of product or service through the
entire process defect-free.
RTY= e-DPU
Based on the Poisson distribution
41
Example
1.
Given that any one defect can cause a unit to be

defective.
What is the yield?
Yield= 3 6 = 50%
2.
What is the DPU?

DPU= 9 6 = 1.5
3.
42
21
What is the RTY?

RTY= e-1.5= 22%
Defect
Defect Per Opportunity (DPO)
Every product or service exhibits multiple CTQs and has to

be free of defects for those products and services to meet
customers expectations.
An opportunity is defined as any part of a product or a

service where a defect can be found; in other words,
opportunities are those CTQs that the customers expect to
receive without any defects.
43
DPO (cont.)
44
22
Opportunity
O: number of opportunities
found on a unit
Total opportunities =
= OXU
Defect per Opportunity=
Defects
DPO=
OXU
DPU
DPO=
O Dr. Mazen Arafeh, CSSBB, BSCM, EFQM
Example
O =5
Total opportunities =
= 5 X 6 = 30
Defect per Opportunity=
Opportunity
9
=0.3
5X6
DPU
1.5
DPO=
=
=0.3
O
5
DPO=
45
Defects Per Million Opportunities

DPMO
46
Developed at Motorola
Assumes the possibility of multiple defects per unit
Is based on a determination of the number of defect

opportunities for a given unit of production or service.
DPMO arose from a need to compare complex and simple

product/processes on the same footing.
Prior to DPMO there was no good way to benchmark divisions

of the same company with dissimilar products or processes
23
PPM vs. DPMO

47
PPM = Parts (Defectives) Per Million

DPMO = Defects Per Million Opportunities
DPMO looks at the number of defects produced

What is the difference?
A single defective part may contain several
defects - therefore DPMO requires greater
control of your processes and, in many cases, a
different way of accumulating data.
Example 2
48
If the average lifespan is 75 years = 657,000 hours.
At three defects per million
SS life would never have a bad day
Only about two bad hours!
If those two bad hours were the hour of birth and the hour of
death, then everything in between would be perfect!
24
Sigma Quality Level (SQL)

49
Six Sigma uses a metric called the

Sigma Level, based on the number of defects that
occur in every million opportunities.
If the Sigma Level is high, then customer satisfaction

will probably be high, and if customers are satisfied,
then total sales, market share, and profitability will
also be favorable.
A Universal Measurement Scale

DPMO
691,462
308,538
158,655
66,807
22,750
6,210
1,350
233
32
3.4
50
25
SQL
1
2
2.5
3
3.5
4
4.5
5
5.5
6
Sigma
7
6
5
3
3.4
233
DPMO
6210
66807
On one condition :
Calculate the defects and
estimate the opportunities
in the same way...
Example 3
51
Consider a company that provides an order entry service

that can be defective in ten different ways.
If the company enters 1000 orders and 100 orders are

entered incorrectly. In these incorrectly entered orders 350
defects were found.
What is the defective rate per million (DPM)?
What is the defect rate per opportunity (DPO)?
What is the defect rate per million opportunity(DPMO)?
What is the SQL?
Solution
52
What is the defective rate per million (PPM)?
PPM
Total number of defectives

1, 000, 000
Total number of items
PPM
100
1, 000, 000 100, 000 PPM
1,000
26
53
DPO

Total number of opportunities
Total number of defects 350

Total number Total number number opportunities
of opportunities = of orders

order
= 1000 orders
DPO
350
0.035
10,000
10 opp.
= 10,000 opp.
order
What is the DPMO?

DPMO
DPMO DPO 1,000,000
691,462
DPMO 0.035 1, 000, 000
308,538
DPMO 35, 000
158,655
66,807
22,750
What is the SQL?
6,210
1,350
SQL 3.3
233
32
3.4
54
27
SQL
1
2
2.5
3
3.5
4
4.5
5
5.5
6
Example 4
55
A mortgage company is embarking on a project to improve the

performance of its underwriting and loan closing process.
The company wants to establish a Sigma Level baseline in

order to gage its improvement efforts.
The company has identified four general steps in the process.

Each of the process steps is shown below, along with the
potential number of defects for each step (this is a simplified
example):
Process Step
56
Potential Defects
Per Application
Collect information from applicant

Verify applicant information
Evaluate credit quality
Prepare loan paperwork
15
5
5
10
TOTAL
35
Company records indicate that

2,500 loans were processed during the last year,
Out of those 2,500 loans, 3,500 defects were identified.
So what is DPMO & SQL

?
28
Solution
DPMO

1, 000, 000
Total number of opportunities
Total number 3500 loan (from Actual Experience)

of defects
Total number Total number number opportunities

of opportunities = of loans

loan
= 2500 loan
DPMO
3,500
1, 000, 000 40, 000
87,500
57
DPMO
691,462
308,538
158,655
66,807
22,750
6,210
1,350
233
32
3.4
58
29
35
= 87,500 opp.
loan
SQL
1
2
2.5
3
3.5
4
4.5
5
5.5
6
DPMO=40,000
SQL= 3.25
59
% Yield
% Good
30.8538%
69.1462%
84.1345%
93.3193%
97.7250%
99.3790%
99.8650%
99.9767%
99.9968%
99.9997%
% Bad
DPMO
69.1462% 691,462
30.8538% 308,538
15.8655% 158,655
6.6807%
66,807
2.2750%
22,750
0.6210%
6,210
0.1350%
1,350
0.0233%
233
0.0032%
32
0.00034%
3.4
SQL
1
2
2.5
3
3.5
4
4.5
5
5.5
6
Sigma Quality Level (SQL) & Probability

60
Normal distribution of process output variable, showing the 3s limits

99.73 % yield = 2700 DPMO
30
61
Normal distribution of process output variable, showing the 6s limits

99.9999998 % yield = 0.002 DPMO
Normal Distribution Shift by 1.5 s

62
31
SS Tables with 1.5 s shift
Yield
99.99966%
99.99946%
99.99915%
99.99867%
99.99793%
99.99683%
99.99519%
99.99277%
99.98922%
99.98409%
99.97674%
99.96631%
99.95166%
99.93129%
99.90324%
99.86501%
99.81342%
99.74449%
99.65330%
99.53388%
99.37903%
99.18024%
98.92758%
98.60965%
98.21354%
97.72496%
97.12830%
96.40689%
95.54332%
94.51986%
63
Sigma
DPMO
Yield
6.00
3.4
93.31894%
5.90
5.4
91.92379%
5.80
8.5
90.31910%
5.70
13
88.49170%
5.60
21
86.43133%
5.50
32
84.13131%
5.40
48
81.58918%
5.30
72
78.80723%
5.20
108
75.79285%
5.10
159
72.55878%
5.00
233
69.12298%
4.90
337
65.50848%
4.80
483
61.74280%
4.70
687
57.85726%
4.60
968
53.88602%
4.50
1,350
49.86501%
4.40
1,866
45.83063%
4.30
2,555
41.81852%
4.20
3,467
37.86216%
4.10
4,661
33.99171%
4.00
6,210
30.23279%
3.90
8,198
26.60556%
3.80
10,724
23.12395%
3.70
13,904
19.79520%
3.60
17,865
16.61957%
3.50
22,750
13.59051%
3.40
28,717
10.69495%
3.30
35,931
7.91394%
3.20
44,567
5.22350%
3.10
54,801
2.59574%
Sigma
3.00
2.90
2.80
2.70
2.60
2.50
2.40
2.30
2.20
2.10
2.00
1.90
1.80
1.70
1.60
1.50
1.40
1.30
1.20
1.10
1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
DPMO
66,811
80,762
96,809
115,083
135,687
158,687
184,108
211,928
242,071
274,412
308,770
344,915
382,572
421,427
461,140
501,350
541,694
581,815
621,378
660,083
697,672
733,944
768,760
802,048
833,804
864,095
893,050
920,861
947,765
974,043
Example 4
64
Convert Defect Level to SQL

175 defects are identified while producing
5000 units, The manufacture of the units allows
for 1367 defect opportunities per unit.
Calculate
1.
2.
3.
DPO
DPMO
SQL
32
Example 4
65
Solution
= 175 /(5000x1367)= 0.0000256
DPMO = 25.6
DPO
SQL=
5.55 (From tables)

What Are the Basic Lean Six Sigma Tools?
Primarily involve brainstorming, idea generation,

and decision making
Intuitive in nature; easily taught, understood, and

applied
66
33
Ideal for use with teams and user groups
Basic Lean Six Sigma Tool Examples
67
Process Mapping
Mistake-Proofing
Constraint Management
Affinity
Process Flow
Interrelationship Digraphs
Line Balancing
Force Field Analysis
Value Analysis
Nominal Group Technique
Brainstorming
Multi-voting
Check Sheets
Run Charts
Materials Management
Histograms
Shop Floor Controls
Scatter Diagrams
Kaizen
Control Charts
Pareto Analysis
Sales and Operations Planning,

Stocking Strategy
Vendor Certification/
Scorecards/Lead-Time Reduction
Supplier Communication
C&E/Fishbone DiagramsDr. Mazen Arafeh, CSSBB, BSCM, EFQM
Order Management/Case Teams
What Are the Advanced Lean Six Sigma Tools?
Statistical tools requiring more in-depth knowledge

of statistical principles and analytical techniques to
use.
Lean tools may involve multi-company, multifunctional, or senior management participation to

formulate and implement.
68
34
Advanced Lean Six Sigma Tool Examples
69
Gage R&R
Design of Experiments (DOE)
Cp & Cpk
Hypothesis Testing
Multivari Chart
Response Surface Methodology
Main Effects Plots
Make vs. Buy
Interaction Plots
Plant consolidation
Regression Analysis
Strategic sourcing
Analysis of Variance (ANOVA)
C&E Matrices/Quality Function Deployment (QFD)
Failure Modes and Effects Analysis (FMEA)
70
Is 99.9% Good Enough?
35
99.9%
4.6 SQL
99.9973%
6 SQL
71
Wrong drug prescriptions per year

4,000
Newborns dropped by doctors /nurses /yr 3,000
13
10
Lost letters per hour

patients annually with surgery performed
on the wrong part of their body
400
70,000
1
238
Families leaving with the wrong baby

each year.
Short or long landings in all the airports in
the U.S.
The integrated circuit serving as the
processor for your computer may have in
excess of 20,000,000 circuits.
4,000
13.6
2/day
2/year
20,000
68
wouldn't
workCSSBB, BSCM, EFQM
Dr. Mazen Arafeh,
What Does Six Sigma Mean In Your Daily

Life ?
72
IRS - Tax Advice (phone-in)
100K
(66810 ppm)
10K
Average
Company
1K
Restaurant Bills
Doctor Prescription Writing
Payroll Processing
Order Write-up
Journal Vouchers
Wire Transfers
(6210 ppm)
Purchased Material
Lot Reject Rate Air Line Baggage
Handling
(233 ppm)
100
10
Best in Class
Domestic Airline
Flight Fatality Rate
(3.4 ppm)
SIGMA
36
(0.43 ppm)
Dr. Mazen Arafeh,

BSCM,
(with CSSBB,
1.5 Sigma
Shift) EFQM
73
Improving performance closer to Six Sigma provides

MORE of what all the Company's stakeholders want.
Shareholders
Associates
Customers
Lean Six Sigma Framework

1.
Six Sigma starts with an emphasis on bottom-line
74
performance and cost reduction, building on the "Cost of

Quality" (or "Cost of Poor Quality) concept.
2.
Like TQM, the foundation of Lean Six Sigma is the work

of Shewhart, Deming, Juran, and a collection of
"Japanese" quality improvement techniques
popularized decades ago.
Statistical
tools.
37
Process Control and Design of Experiments are core

75
3.
The concept of Zero Quality Control
Zero defects
Error-proofing (poka-yoke)
100% source inspection, developed by Shigeo

Shingo and implemented in the Toyota Production
System in the 1970's.
Typical response to process problems

76
A.
B.
C.
Ride the Blame Train

Try to widen tolerances
Add inspection operations
Which do you think will be effective?
38
Inspection and 6s
77
Handout
78
Inspection is expensive and does not ensure that the

root cause of the defects is corrected
39
4. The intense focus on the customer.

79
Six Sigma means exceeding customer expectations, not merely meeting

internal standards, so the process starts with understanding what
customers really want.
5. Six Sigma has a process orientation rather than a functional

bias.
Product and service processes are analyzed and improved step by

step across their entire span.
Process Thinking
80
A series of operations performed in the making or

treatment of a product (The free dictionary)
A series of actions or operations conducing to an end;

especially : a continuous operation or treatment
especially in manufacture (MerriamWebster)
40
Process Thinking
Outputs
Inputs
Process
Materials
Controls
Machinery
etc..
The things
you measure
as an indication
of the success
of the process
A blending
of Inputs to
achieve
some Output
Input Determines Output

81
82
Process
Input
Process
Input
Process
Input
Process
Process
Input
Process
Input
X1
X3
X4
X2
f Y
Process
Output
X5
41
6. Six Sigma drives activity with the rigorous use of

performance metrics
83
A clear objective DPMO target.
Lean Six Sigma subscribes to the philosophy that "what gets

measured gets done."
7. A unique support infrastructure provides coordination,

guidance, and technical expertise to process improvement
teams. Team leadership by "Black Belts" helps break down
functional barriers.
History of Six Sigma

84
Motorola Corp
Started by Dr. Mikel Harry at Motorola in 1970s

Bill Smith 6 s 1986
Encouraged by CEO Robert Galvin
Motorola wins Malcolm Baldrige Award, 1988
Subsequently adopted by other companies, including
Allied Signal (Honeywell)
Larry Bossidy (1994)
GE
Jack Welch (1995)

Dr. Mikel Harry
GE claims savings in $billions
42
Invest VS Return
85
Ingredients for SS Success

86
Dr. Mazen
Arafeh, CSSBB,
BSCM, EFQM
R
i
g
h
t
43
C
o
m
b
i
n
a
t
i
o
n
Right TOOLS
Right ROADMAP
Right PROCESS
Right PEOPLE
Right SUPPORT
R
I
G
H
T
R
E
S
U
L
T
S
Reasons for SS Success (Failure)

87
1.
2.
3.
4.
5.
6.
Strong leadership by champions (Lack of)

Clear Understood roles and responsibility (mis)
Appropriate culture for improvement (Lack of)
Acceptance to change and the Six-Sigma
structure (Resistance)
Strategies for deployment (Faulty)
Existence of data (Lack of )
Resistance to change and LSS

88
1.
2.
3.
4.
5.
6.
7.
fear of risk involved

fear of rejection
if it's not broken don't fix it
cost of change
used to routine
lack of skill needed
special interest
44
The LSS Improvement Process

D-M-A-I-C
89
Define
Control
Check
Plan
Act
Do
Improve
Measure
Analyze
LSS Rigorous Problem Solving Approach

90
Tollgate
Review
Tollgate
Review
Tollgate
Review
Tollgate
Review
Tollgate
Dr. Mazen
Arafeh, CSSBB, BSCM, EFQM
Review
45
Define
DEFINE Overview
Control
Measure
91
Understand the problem to be addressed
Determine roles and responsibilities
Establish goals and milestones
Improve
Analyze
Define
Outline
Control
Measure
92
1.
Identify Project
2.
Project Charter
3.
LSS Players
4.
Determine Customer Requirements and CTQs
5.
Kano Model
6.
Brainstorming
7.
Affinity Diagram
8.
The source of Value
9.
Map the Process
Improve
Analyze
46
Project Selection
93
Blatantly Obvious
Things that clearly occur on a repetitive basis and present

problems in delivering our service(s) or product(s).
Brainstorming Approach
Identifies projects based on individuals experience and tribal

knowledge of areas that may be creating problems in delivering
our service(s) / product(s) and hopefully tie to bottom-line
business impact.
Structured Approach
Identifies projects based on organizational data, provides a direct plan

to effect core business metrics that have bottom-line impact.
Define
Define
Control
Measure
94
Identify Project
Improve
Determine Customer Requirements and CTQs
Map the Process
Develop Project charter
Analyze
Define
Problem, Objective, and Benefits

Define Stakeholder/Resource Analysis
47
Project Selection
95
Identify
Potential
Problems
Obtain Data,
Evaluate,
Select
Categorize
and Charter
Identify Potential Problems
Identify Potential
Problems
Obtain Data,
Evaluate, Select
Categorize and
Charter
96
Input
Customer
dissatisfaction
Costs of poor
quality
Reviews and
audits
Business plans
Results of quality
projects
Managers and
other associates
Process
Output
Investigate prime
sources of
information about
the organization
List potential
problem(s)
identified from
each source
A comprehensive
list of potential Six
Sigma projects
Input to project
evaluation
48
Obtain Data
97
Input
Potential
Projects
Identify Potential
Problems
Process
Collect specific objective
data on each problem or
process identified as a
potential project
Determine each potential
project's probable impact
on:
retaining customers
attracting new customers
reducing the CPQ
enhancing associates
satisfaction
Obtain Data,
Evaluate, Select
Categorize and
Charter
Output
Pareto diagrams
indicating the
probable impact of
each potential
project
Evaluate & Select

98
Input
Potential
Projects
Data on
each
project
Identify Potential
Problems
Process
Evaluate each project to
verify that it meet must
criteria
Rate the relative strength
of each potential project
with respect to want
criteria
Select best project(s)
Obtain Data,
Evaluate, Select
Categorize and
Charter
Output
A project to be
chartered
49
EVALUATE AND SELECT

Must Criteria
99
Significant: impact on customer / business

Chronic
Evaluation Criteria
Greatest potential impact
Urgency
Of Manageable Size (Scope)
Measurable
Risks
Potential resistance to change
Likely to be a winner, i.e., accomplish mission
Potential Projects
100
Determine a
candidate
project list and
potential
benefits:
Conduct effort
to impact
analysis and
prioritize the
project list
Candidate Six
Sigma Project(s)
Project Champion
and Owner
Manufacturing
NPI
Finance
Design
Project
1
2
3
4
5
6
7
8
9
10
Effort
6
3
4
7
10
2
5
8
1
9
HR
Impact
1
3
3
3
3
6
6
6
9
9
Effort / Impact Analysis

10
9
8
7
Impact
Materials
Management
6
Impact
5
4
3
2
1
Projects with high impact are

preferred
0
0
10
12
Effort
50
Harvesting the Fruit of Six Sigma
Sweet Fruit
Design for Manufacturability
Process Entitlement
Bulk of Fruit
------------------------------------
Process Characterization
and Optimization
Low Hanging Fruit

Seven Basic Tools
- - - - - - - - - - - - - - - - - - -Ground
- - - - - -Fruit
----------Logic and Intuition
101
Charter
102
Identify Potential
Problems
Input
Selected
project
Process
Describe customers,
problem, mission,
scope, benefits,
milestones, team
Obtain Data,
Evaluate, Select
Categorize and
Charter
Output
Written Draft
of Charter
Statement
51
Pareto Priority Index

103
PPI=
Savings X Probability of Success

Cost X Completion time
Project
Saving
($000)
Pr Success
Cost
Completion time
($000)
PO cycle time
220
90%
3.5 months
11.3
Shipping
damage
400
70%
6 months
5.2
Design change
770
50%
30
10 months
1.28
PPI
Charter
104
A Charter is
Manageable
Observable
Measurable
Specific
52
Project Charter Elements

105
1. Problem Statement
What "pain" are we
experiencing?
What is wrong?
3. Goal Statement
What are our improvement
objectives and targets?
5. Project Plan
How are we going to get this
done?
When are we going to
complete the work?
2. Business Case
Why should we do this?
4. Project Scope
What authority do we have?
What processes are we addressing?
What is not within scope?
6. Team Selection
Who are the team members?
What responsibilities will they have?
Problem Statement
106
What specifically is the problem?

A description of the issue or problem
What is (CTQ) from the customer perspective?
What is nonconforming to specifications?
When, Where does it occur?

What is its extent?
Define the boundaries of the problem, how big is the

problem?
Do not state a solution when describing a problem

53
Business Case
107
Expected Benefits
Why this project is important to the business strategy, what
financial benefits are expected, and where they will come from
What are the compelling business reasons for embarking
on this project?
In this project linked to key business goals and
objectives?
What key business output measures will the project
leverage and how?
What are the rough order estimates on cost savings?
Goal Statement
108
Objective Mission
What is the team to accomplish
with respect to the problem?
Describe, in measurable terms, what success will look
like when youve solved the problem
Include a statement of the performance level that
will satisfy your CTQ and the time frame in which
you plan to implement the improvement. State
targets and tolerances where appropriate.
54
Scope
109
What process will the team focus on?

What are the boundaries of the process we are to
improve?
Where does the process begin? Where does it end?
Which customers will be affected / included
What is outside of scope for the team?
What constraints or timelines must the team work
under?
Project Plan
110
Identify key milestones and objectives

Activity
wk1
wk2
Time
wk3
wk4
wk5
.Form Team
.Finalize Charter
.Gather Data
.Analyze Data
.Select solution
.Meet Management
.Develop Plan to Implement
.Closure & Recognition
55
Six Sigma Players

111
Champions/Sponsors.
Black Belts.
Green Belts.
Yellow Belts.
Process owners.
Master Black Belts.
Champions (Management Sponsor)

112
Promote awareness and execution of SS within lines of business functions
Identify potential SS projects to be executed by BB and GB
Identify, select, and support BB and GB candidates
Removes organizational obstacles
Provides approval, support, recognition and rewards
Communicates with executive management and peers
Would probably be the CEO in smaller companies and a senior VP in

larger companies.
56
Black Belts (Team Leader & Mentor)

113
Use, teach, and disseminate Six Sigma tools and

methods
Are dedicated full-time (100%) to Six Sigma
Serve as Six Sigma knowledge leaders within Business
Unit(s)
Provide project management, facilitating and leading
teams, recommending team membership
Green Belts
(Team Leader and Team Member)
114
Use Six Sigma DMAIC methodology and basic tools

to execute improvements within their existing job
function(s)
May lead smaller improvement projects within
Business Unit(s)
Bring knowledge of Six Sigma concepts & tools to
their respective job function(s)
Improvement is part of their job !
57
Yellow Belts
115
Some companies have employees who are

familiarized with improvement processes.
Process Owners
116
Are responsible for everything between the beginning and end

points of a process.
May also be a Champion.
Owns many of the resources that a project team will need to do its
job.
Arrange for the time and cooperation of process performers.
Must support the team and its goals
Must implement any substantive changes made to improve the
process.
Must be advocates of process improvement and SS, and must be
managers and champions of change.
58
Master Black Belt (Expert & Trainer)

117
Experienced black belts who serve as

mentors and trainers for new black
belts.
Brings training in-house and can

reduce costs.
Leadership Grid by Porter and Lawler

high
high
Concern for people
118
Country club style

concern for individuals is
high;
a comfortable organization
and work pace.
Middle of the road style
minimal amount of effort to

get the work done.
Impoverished style
low
Team style
work is performed by motivated
people; relationships of trust and
respect.
the operation is designed and

arranged in such a way that
workers have minimal effect.
Motivation is replace by fear.
Authority command style
Concern for production
high
59
Where do you see your
119
self?
Are you comfortable in

that position?
Which position would you

like to be in?
Where do you see others

in the team?
Voice Of The Customer

120
What is important to the Customer?

How do we know?
CTQs
60
121
"A customer is not an interruption of our work...he is

the purpose of it. We are not doing a favor by
serving him...he is doing us a favor by giving us the
opportunity to do so."
Leon Bean, the founder of L.L. Bean, a leading outdoor products retailer,
Identify the Customer

122
Who is the Customer?
Are there different segments of customers?
Has the Voice of the customer been collected?
Have the customer needs been translates into specific,

measurable requirements? How ?
Be sure not to ignore two very important customer groups:
Customers that have chosen not to buy your product
Customers considering buying your product.

61
123
Voice of the Customer Process

124
Gather
Sort
Develop
Translate
Active and Passive Information

Affinity Diagram
CTQC Tree
QFD
62
Sources for Customer Requirements

125
Some information sources are

Passive
Active:
Customer feedback is not solicited (e.g. complaints, warranty).

Information that is generated through customer queries and direct
observation.
Warranty claims
Complaints and other customer feedback
Interviews of customer service representatives
Interviews of dealers or salespeople
Customer surveys, especially verbatim comments
Customer focus groups
Market research
Gather
CTQC Tree
Sort
Affinity Diagram
CTQC Tree
Develop
Translate
126
Active and Passive Information
QFD
Translating (VOC) information that is often communicated only as

general (or even vague) wants and needs into specific Critical to
Quality Characteristics (CTQCs) is one of the objectives of the
Define phase of the DMAIC improvement cycle.
The Tree Diagram is a useful tool for identifying the specific tasks
that must be completed in order to reach a goal.
Starting with a general goal, the Tree Diagram moves from

general WHATs to specific HOWs.
63
CTQC tree exercise

127
Develop a CTQC tree
Example
128
AB PPT <=15 Min.
Fast Service
Short PPT
CD PPT <=30 Min.
EF PPT <=45 Min.
Greeted by
Pharmacy Staff
when Pres. is
submitted
Satisfied Customer
Professional
Service
Explain how the

meds should be
taken when
dispensed
Quality Service
Given the correct

med with the
correct dosage
64
Process Maps
129
A graphical illustration of the current process
All input and output variables are documented
Must be done via team approach including process

owners and stakeholders
Helps identify gaps in current process control which may

require immediate test measurement or capability
analysis
Helps identify non-value-added steps

Process Thinking: S-I-P-O-C
Suppliers
Inputs
Outputs
Customers
x
Process
Xs, Inputs
Process variables
Inputs to the process
Essential actions to
achieve strategic goals
Key influences on
customer satisfaction
130
65
Ys, Outputs
Customer requirements
Yield, Waste, Rate
On Time Delivery
Economic Profit
Strategic goal
Customer satisfaction
Begin Mapping the Process with a SIPOC

131
Move to a detailed Process Map
132
66
Example
133
/Storage
/Storage
S
T
O
R
A
G
E
Define
MEASURE Overview
Control
Improve
Measure
Analyze
134
Measurements are the foundation of any LSS Project
Action drivers
Reliable feedback that is absolutely essential to

progress.
A visible way for communication.
WHAT GETS MEASURED GETS DONE

67
Measure Flow
Data Collection Plan &
Sample Size
List Of
Measures
(Xs and Ys)
Data Collection Plan

Define What to Measure
Measure
Type of
Measure
Operational
Definition
Define How to Measure

Measurement
or Test Method
Name of
X or Y
Clear definition of
Visual
parameter attribute or the measurement
inspection
or condition discrete
defined in such a
or automated
to be
data,
way as to achieve
test?
measured product or repeatable results Test instruments
process
from multiple
are defined.
data
observers
Procedures for
data collection
are defined.
Who will
Do it?
Sample Plan
Data Tags Needed

to Stratify the Data
Data Collection
Method
Person(s)
Assigned
What?
Where?
When?
How Many?
Data tags are

defined for the
measure. Such
as: time, date,
location, tester,
line, customer,
buyer, operator,
etc.
Manual?
Spreadsheet?
Computer based?
etc.
State
who has
the
responsibility?
What
measure is
being
collected
Location
for
data
collection
How
often
the
data
is
collected
The number
of data
points
collected
per sample
MSA, GR&R,
Inspector
Effectiveness
Data Collection,
Process Baseline and
Capability
Determination
Goal
Add Specifications
and Compute
Sigma and
Capability
135
Baseline
Restate
Improvement
Goals
Operational Definitions
136
A precise description of
the specific criteria used for the measures (the what),
the methodology to collect the data (the how),
the amount of data to collect (how much),
who has responsibility to collect the data (the who).
Provides everybody with the same meaning

Ensures that consistency and reliability are built in up front.
Describes the scope of the measure(what is included and
what is not included).
68
Example:
137
Poor:
Cycle time for Patients
Good: Collect data from all Walkin Patients from

January 2, 2010 to January 2011. The response time
will be measure from the moment a Walkin patient
submits the prescription to the moment the patient
receives the medication.
Measurement System Analysis

138
Objective :
Is the measurement system generating reliable data?
Validate that the current measurement system on the project

Y (cycle time, inventory, yield, etc) is good enough to detect
process change.
Accuracy : How well does the average of the measurements
represent the true value?
Repeatability : How consistent are repeated measurements BY
THE SAME OPERATOR on the same sample?
Reproducibility : How consistent are DIFFERENT OPRATORS at
measuring the same sample?
Methodology :
Gage R&R Study

69
Define
Analyze
Control
139
Measure
Improve
Analyze
Analyze Activities
Analysis of the Process Map
Determine Root Cause(s) Using Data
Establish Causal Relationships Using Data
Analyze Quality Tools

Statistical analysis of data
Cause and effect diagram
5 whys
Histogram
Pareto diagram
Run chart
Scatter graph
Regression Analysis
Hypothesis Testing
Analyze Flow
Project Data
Xs and Ys
Measure
Responses or Outputs (Ys)
Dependent Variable
Factors (Xs)
USL LSL Target Independent Variable(s)
USL LSL Target
Thomas A. Little Consulting 2002
Analysis and
Stratification of Data
Root Cause
Analysis
Summary
140
70
Root Cause
Validation
Key Analysis Strategies

141
Process Analysis : Deeper investigation into and

understanding of how work is being done to identify
inconsistencies, disconnects or problem areas that
might cause or contribute to the problem
Data Analysis : use of Measures and Data; discern

patterns, tendencies, or other factors about the
problem that either suggest or prove/disprove
possible causes
Analyze the Process Map for Waste

142
When Mapping the Process Consider the Following:

What you think it is...
What it actually is...
What it could be...
71
Root Cause Analogy

143
Like pulling weeds unless we

address the root that causes the
problem, poor results will keep coming
back.
Addressing the results (symptoms)
of a problem will never provide
lasting solutions - given a little time
the problem will come back
We need to understand the Root
Cause of the problem from our problem
statement
List Of Vital Few Xs and Critical Ys

144
Collected X and Y data
Hypothesis testing
t-test
F-test
ANOVA
Chi-square
Regression analysis and Model fitting
List Of Probable Root Causes and key process sensitivities

72
5 Whys
Complaints about Room Service
Why?
Cold food delivered by Room Service
State the problem,

then ask why did this
problem occur until
you reach root
Why? cause.
Delivery process was taking too long
Why?
Large delays waiting for service elevator
Why?
Heavier elevator use by housekeeping
Why?
Housekeeping was frequently re-stocking their towels
Why?
Laundrys washing process not completed on-time
Why?
Necessary supplies not available
Why?
Vendor shipment: (1) late again, and (2) contained inadequate quantities
...etc.
145
Define
Improve
Control
Measure
146
Improve
Improve Activities
Analyze
Develop Solution Alternatives

Assess Risks and Benefits of Solution Alternatives
Validate Solution using a Pilot
Implement Solution
Determine Solution Effectiveness using Data
Improve Quality Tools

Benchmarking
Brainstorming
Simulation
Five S
73
Design of Experiments
FMEA
Improve Flow
Design Experiments
where appropriate
Based on RCA
Brainstorm Potential
Solutions, Costs, Risks
and Benefits
Test and Validate

solutions
Review and approve

solutions with
Management
Installed
New
Process
Equipment
DPU
N
Implement changes and
determine improved
process capability.
Reach
Goals?
147
Examine
opportunities for
standardization and
translation
Piloting Improvement
148
Solution Tested at a Small Scale or Pilot Program
Objective:
Determine
Evaluate
user acceptance, test with customer
cycle time reduction, increase in accuracy.
74
Define
Control
Control
Measure
149
Improve
Control Activities
Analyze
Determine Needed Controls (measurement, design, etc.)

Implement and Validate Controls
Develop Transfer Plan
Realize Benefits of Implementing Solution
Close Project and Communicate Results
Control Quality Tools

Statistical Process Control
Out of Control Action Plan (OCAP)
Design Changes to eliminate the defect
Control Flow
Select SPC controls
where appropriate
Based on Solution,
Brainstorm
appropriate controls
to sustain the gains
Implement and validate

controls
Cost Improvements Quantified:

Curr Cost
($1, 000's
Process
Touch-up & Handsolder
Wash
QA/ Final Inspection
Rework
QA (QA E ngineers)
Production Control/Expediting
per w eek) New Cost
Total per week for costs elements above
Total per Year
$ 10,782 k $ 9,525 k per Year
$
$
$
$
$
$
73
24
58
20
5
27
$
$
$
$
$
$
207 $
70
23
45
16
4
26
95%
95%
78%
78%
78%
95%
183 per Week
Improvement
$
3.7
$
1.2
$
12.5
$
4.4
$
1.0
$
1.4
$
$
24.2
1,257 k
Determine costs of current baseline and the impact to cost if the goal is
achieved. Consider also the full impact to all effected lines and production
operations. If financial analysis shows poor ROI you may want to select
another project.
150
75
Review and approve

control plan with
Management
Realize savings and

determine final
financial benefits and
ROI
Determine long
term owner and
close the project
Process Creation vs. Process Improvement

151
Define
DFSS
DMEDI
Roadmap
Steps to design a
new product or
process
No
Does
Process
Exist?
Measure
Measure
Analyze
Explore
Develop
Implement
LSS
Yes
No
Is
Incremental
Improvement
Enough?
DMAIC
Roadmap
Steps to improve
an existing
process
Yes
Improve
Control
End of Module 1, to be continued

152
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1

Module 1- Six Sigma: An Overview

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

Dr. Mazen Arafeh CSSBB

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

Lean Six Sigma Awareness

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

What is SS: Higher Standards for

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

What is SS: Business philosophy

Focusing on continuous improvement

Understanding customer s needs (VOC)

Emphasizing on financial result (VOB)

Analyzing business processes (VOP)

Instituting proper measurement methods

Data driven decisions

Business Process Management

Formal support and active involvement

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

What is SS: Metric

Measurement used to assess process performance and

A way to measure quality

A standard of excellence (3.4 defects per million

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

What is SS: Methodology

A scientific and practical method to achieve

Assuming quantitative data

Measure - the process current state

Analyze - determine Root Cause or Y= f (x)

- eliminate waste and variation

- evidence of sustained results

- the business opportunity

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

Six Sigma Companies

Dr. Mazen Arafeh, CSSBB, BSCM,

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

Six Sigma Companies

development, and manufacturing

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

Example: Measuring Process Performance

Customers want their pizza

Guarantee = 30 minutes or less

What if we measured performance and found an

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

The Greek letter sigma s is a mathematical term that simply

The distribution or spread around the mean of any process or

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

What does variation mean?

Variation means that a

Every human activity has

Variation directly affects customer experiences.

Customers do not feel averages!

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

What does variation mean to you?

How does it affect you? Others?

Dr. Mazen Arafeh, CSSBB, BSCM, EFQM

Example: Measuring Process Performance

Customers want their pizza

THE TOTAL PROCESS YIELD= 0.90.980.95= 0.84 or 84%