Life Cycle Engineering Associates “Six-Sigma [6s] for Managers” The Concept & Method of Six-Sigma prepared for American Society of Quality Baltimore Section Breakfast meeting LCEA Life Cycle Engineering Associates Presented by: John Weisz CQE, CRE 18 March 2004 my docs\6sigma for ASQ Managers.ppt 12/6/2018

What is “6-s?” A statistical measurement: a business strategy ... “sigma” = “s” = one standard deviation [statistic] measures the degree to which ANY business process deviates from its goal or standard [see next page] a business strategy ... that can lead to breakthrough improvements in profitability and quantum improvements in quality that can provide decisive competitive edge as quality improves and costs go down a philosophy … the context for how we work & compete in the marketplace working “smarter, not harder” preventive, pro-active approach to reducing errors/defects focused on understanding and reducing variation my docs\6sigma for ASQ Managers.ppt 12/6/2018

“Six-Sigma” Illustrated Average or Mean of Distribution 2 [~95% of distribution is defect free] 3 5 [~99.7%] [~99.99%] [~99.987%] [~99.9997%] 4 6 Example: Imagine manually typing a book... 3  = 1 misspelled word for every page of text* 6  = 1 misspelled word for every 1,000 pages* This ‘tail’ of the distribution represents the # of defects[outside of the distribution ‘limits’] for a certain level of “s” process capability. In this case, for 6- quality, there are less than 1.7 defects per million opportunities to produce a defect [multiply by 2 to take both ‘tails’ into account] * = assumes average of 334 words/page my docs\6sigma for ASQ Managers.ppt 12/6/2018

The Benefits of Quality in“Sigma” A Real-World Manufacturing Example Mean 2.05 [~96% of distribution] 3 [~99.7%] 3.5 [~99.9%] Cost Improvement Due to In-House CQI Program Costs Before [@2.05s ]: $115k per month PHASE I [to 3s Quality] Cost Savings: ~ $60K in quality costs per month Cost to Implement: Non-recurring = $120K Recurring = $5K per month ROI: 450% in first year! PHASE II [to 3.5s Quality] Cost Savings: ~ $30K in per month Cost to Implement: Non-recurring = $45K Recurring = $3K per month ROI: 520% in first year! my docs\6sigma for ASQ Managers.ppt 12/6/2018

Some Myths [& Truths] About 6-s my docs\6sigma for ASQ Managers.ppt 12/6/2018

The Advantages of “Quantum Improvement” [see Jay Arthur’s Six-Sigma Simplified (LifeStar,2000)] my docs\6sigma for ASQ Managers.ppt 12/6/2018

6-s Basic & Advanced Tools 1 Line Chart 1 Life Cycle Cost Analysis 2 Process Failure Mode & Effects Analysis [P-FMEA] and/or Design FMECA 2 Pareto Graph 3 Statistical Design of Experiments [SDE] 4 Quality Function Deployment [QFD] 3 Fishbone 5 KANO Map [Ishakawa] 6 Value Stream Mapping 4 Flow Chart 7 Customer Satisfaction Measurement & Management system [CSSM] 8 Countermeasures Matrix 9 Force Field Analysis 5 Control Chart 10 Action Plan 11 Capability Analysis my docs\6sigma for ASQ Managers.ppt 12/6/2018

Prerequisites for Sustained Process Improvement Define the process thru flowcharts, Value Stream maps, Process Failure Modes & Effects Analysis Assure process stability thru Statistical Process Control [consistency & “precision”] Assure process capability thru 6-Sigma methods & “capability analysis” [reflects “accuracy” in process, meeting Customer needs, minimum waste or risk to producer or consumer] my docs\6sigma for ASQ Managers.ppt 12/6/2018

Design for Six Sigma [DFSS] The Underlying Truth behind 6-s FACT! “You can’t achieve 6-s by applying only 6-s tools & methods” [The Principle of “Accrued Error”:] Start with small error [i.e., wrong requirement] compound it in next phase [right design for wrong requirement] worse in next phase [ good test for right design but doesn’t prove the requirement is met] during “Operations & Maintenance” phase ... [you have to jury rig fixes] my docs\6sigma for ASQ Managers.ppt 12/6/2018

DFSS in Context my docs\6sigma for ASQ Managers.ppt 12/6/2018

TRIZ: Background TRIZ = (Russian) =Theory of Inventive Problem-Solving Continuous & natural outgrowth of Quality ‘revival of the 1980’s until today QFD, 6s & DFSS tell us what to solve but not how to solve problems Genrich S. Altschuller is the “Father of TRIZ” Soviet inventor & patent expert screened over 200k patents & found only 90% were somewhat inventive categorized solutions by problem-solving process, instead of by industry or other attributes my docs\6sigma for ASQ Managers.ppt 12/6/2018

Concept of TRIZ Goal is to overcome “psycho-inertia” natural tendency to look for solutions only from one’s own experience and profession Other people’s problems A Analogous Solution Sets Prism of TRIZ B C A B C D E F G H I J K L D E My problem F 1 2 3 4 5 6 7 Previous problems efficiently & effectively resolved Optimal Solution for my problem DFSS requires ”innovative problem solving” [=“TRIZ”] my docs\6sigma for ASQ Managers.ppt 12/6/2018

Conclusions about “6-s” Each “sigma” step closer to “6s” results in… lower cost [due to shorter cycle times, less non-value-added steps and less rework] shorter time to market [less delays in development of new products/services/software] more competitive products [less defects; meets Customer needs] Traditional 6-s is not the only way. Faster implementation at lower costs is possible using “Immediate Return 6-Sigma”[IR6S] IR6S tools are easy! In addition to faster ROI… traditional 6-s tools are truly absorbed & embraced “a bite at a time” by employees setting the stage for strategic employment of traditional 6-s after Exec. Management & employees are convinced of its utility & encouraged Can’t reach 6s without DFSS [or TRIZ ?] The cost to start is lower than you think… …the “price” not to …is unthinkable! my docs\6sigma for ASQ Managers.ppt 12/6/2018