Six-Sigma Management and Lean Tools Chapter 13 Six-Sigma Management and Lean Tools

Strategic Quality Planning Six-Sigma Management and Lean Tools Chapter 13 What is Six-Sigma? Organizing Lean Six-Sigma DMAIC Overview DMAIC Phases The Taguchi Design of Experiments Design for Six-Sigma Lean Six-Sigma from a Contingency Perspective

Strategic Quality Planning Six-Sigma Management and Lean Tools What is Six-Sigma? Sigma () is a greek letter used to designate a standard deviation (SD) in statistics Six refers to the number of SD’s from the specialized limit to the mean. Six-Sigma: about 0.5% of products will not meet specification

* ppm = Parts Per Million Strategic Quality Planning Six-Sigma Management and Lean Tools What is Six-Sigma? Sigma Level Long-term ppm* defects 1 691,462 2 308,538 3 66,807 4 6,210 5 233 6 3.4 * ppm = Parts Per Million

Strategic Quality Planning Six-Sigma Management and Lean Tools What is Six-Sigma? Six-Sigma effectiveness

Strategic Quality Planning Six-Sigma Management and Lean Tools Organizing Six-Sigma The key players Champion. Work with black belts to identify possible projects Master Black Belts. Work with and train new black belts Black Belts. Committed full time to completing cost-reduction projects Green Belts. Trained in basic quality tools

Strategic Quality Planning Six-Sigma Management and Lean Tools Organizing Six-Sigma In a company with 100 employees there might be: One black belt Sixty green belts Some companies have yellow belts, employees familiar with improvement processes

Strategic Quality Planning Six-Sigma Management and Lean Tools Organizing Six-Sigma Lean-Six Sigma Pull production Value-stream map

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Overview

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Define- projects are identified and selected Four Phases: Developing the business case Project evaluation Pareto analysis Project definition

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Define Developing the Business Case: Identifying a group of possible projects Writing the business case Stratifying the business case into problem statement and objective statements

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Define RUMBA is used to check the efficacy of the business case Realistic Understandable Measurable Believable Actionable

Project Risk and Return Matrix

Pareto Analysis

Problem Definition

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Measure Two major steps: Selecting process outcomes Verifying measurements

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Measure Two major steps: Select process outcomes Tools used: Process map XY matrix FMEA Gauge R&R Capability Assessment.

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Process Map

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases XY Matrix

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases XY Matrix for Example 13-3

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Solution for Example 13-3

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Measure Two major steps: Verifying measurements Tools Used: Use gauges, calipers and other tools. Management System Analysis (MSA) is used to determine if measurements are consistent

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Measure Two major steps: Verifying measurements Gauge R&R Most commonly used MSA Determine the accuracy and precision of your measurements

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Gauge R&R in Excel

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Analyze Three major steps: Define your performance objectives Identify independent variables (X’s) Analyze sources of variability

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Analyze Three major steps: Define your performance objectives Capability Analysis Identify the independent variables where data will be gathered Process maps, XY matrices brainstorming and FMEA’s are the tools used

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Capability Analysis

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Analyze Three major steps: Analyze sources of variability Use visual and statistical tools to better understand the relationships between dependent and independent variables Include histograms, box plots, scatter plots, regression analysis, and hypothesis tests

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Improve Off-line experimentation ANOVA Taguchi Method

Strategic Quality Planning Six-Sigma Management and Lean Tools DMAIC Phases Control Manage the improved processes using control charts and implementing control plans

Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method Design of Experiment (DOE) Robust Design Concept Design Parameter Design Tolerance Design

Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method Design of Experiment (DOE) Robust design - designed so that they are inherently defect free Concept Design - examining competing technologies Parameter Design- selection of control factors and the determination of optimal levels for each of the factors Tolerance Design- developing specification limits

Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method The Taguchi Method provides: A basis for determining the functional relationship between controllable design factors and the outcomes of a process

Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method The Taguchi Method provides: A method for adjusting the mean of a process by optimizing controllable variables

Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method The Taguchi Method provides: A procedure for examining the relationship between random noise … and product or service variability

Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method Classic QC- Step Function

Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method Taguchi Quadratic Loss Function

Strategic Quality Planning Six-Sigma Management and Lean Tools The Taguchi Method The Taguchi Process

Example 13-6 Results

Strategic Quality Planning Six-Sigma Management and Lean Tools Design for Six-Sigma (DFSS) Used in designing new products with high performance Instead of DMAIC DMADV IDOV

Strategic Quality Planning Six-Sigma Management and Lean Tools Design for Six-Sigma (DFSS) Used in designing new products with high performance DMADV Design Measure Analyze Verify

Strategic Quality Planning Six-Sigma Management and Lean Tools Design for Six-Sigma (DFSS) Used in designing new products with high performance IDOV Identify Design Optimize Verify

Strategic Quality Planning Six-Sigma Management and Lean Tools Six-Sigma from a Contingency Perspective Reasons for Six-Sigma failure: Lack of leadership by champions Misunderstood roles and responsibilities Lack of appropriate culture for improvement

Strategic Quality Planning Six-Sigma Management and Lean Tools failure Six-Sigma from a Contingency Perspective Reasons for Six-Sigma failure: Resistance to change and the Six-Sigma structure Faulty strategies for deployment Lack of data

Strategic Quality Planning Six-Sigma Management and Lean Tools Summary The process for Six-Sigma is define, measure, analyze, improve and control Keys to Six-Sigma success are skilled management, leadership and long-term commitment

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