1. Quality Tools

2. The PDSA Cycle
Plan Do
Study
Act

3. The Process Improvement Cycle
Implement the
Improved process
Select a
process
Study/document
Seek ways to
Improve it
Design an
Evaluate
Document

4. Process Improvement Tools
There are a number of tools that can be used for problem solving and process improvement
Tools aid in data collection and interpretation, and provide the basis for decision making

5. Seven Basic Quality Tools
Check sheets
Flowcharts
Scatter diagrams
Histograms
Pareto analysis
Control charts
Cause-and-effect diagrams

6. Check Sheet Monday Billing Errors A/R Errors Wrong Account
Wrong Amount
A/R Errors

7. Flowchart
Process
Good?
Process
Process
Good?
Process

8. Scatter Diagram
Variable B
Variable A

9. Histogram
frequency A B C D E

10. Pareto Analysis 80% of the problems may be attributed to 20% of the
Smeared
print
Number of defects
Off center
Missing
label
Loose
Other
80% of the problems may be attributed to 20% of the
causes.

11. Control Chart
970
980
990
1000
1010
1020 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
UCL
LCL

12. Cause-and-Effect Diagram
Materials
Methods
Equipment
People
Environment
Cause

13. Tracking Improvements
UCL
LCL
Process not centered
and not stable
Process centered
and stable
Additional improvements
made to the process

14. Seven Management Tools
Affinity Diagram
Interrelationship Diagraph
Tree Diagrams
Prioritization Matrices
Matrix Diagram
Process Decision Program Chart
Activity Network Diagram

15. Methods for Generating Ideas
Brainstorming
Quality circles
Interviewing
Benchmarking
5W2H

16. A Brief History of Quality

17. America Re-discovers Deming

18. … and Juran

19. Rediscovering the Gurus
Deming
Emphasis on Statistical Control
14 Points for Management
Juran
Quality Planning and Analysis
Managerial Breakthrough
Quality Control Handbook

20. Statistics

30. Statistics

32. What Types of Companies Can Benefit from Six Sigma?
Companies that benefit from structured organizational improvement
Companies that need to improve customer satisfaction
All types of companies can benefit:
Manufacturing
Service
Non-profit
Educational

33. What is Six Sigma?
Customer Focus – Focus on what is critical to customers
Data Driven – Extensive use of statistical tools
Robust Methodology – Tools plus implementation methods to make success more likely

34. What is Six Sigma? Key Concepts
Critical to Quality: What attributes are most important to the customer? (CTQ, CTC, CTD)
Defect: Failing to deliver what the customer wants / expects (DPMO)
Variation: The level of unpredictability the customer experiences
These key concepts focus on the CUSTOMER!
First, we find what is most important.
Second, we define what it means to fail to please the customer.
Third, we deal with the important dimension of how much do we miss the expectation. GE says that customers do not feel the average, but rather the variation.

35. What is Six Sigma? Key Concepts
Process Capability: What your process can deliver – consistently
Stable Operations: Stable ops are predictable
Design for Six Sigma: Designing to meet customer needs and process capability

36. DMADV - DMAIC
New Processes
Existing Processes

37. Statistics Lite Centered 3s Process
LSL
USL

38. Statistics Lite Centered 3s Process
LSL
USL s

39. Statistics Lite Centered 3s Process
Non-conforming
Product
1,300 DPMO
LSL
USL s

40. Statistics Lite Centered 3s Process
Non-conforming
Product
2,600 DPMO
LSL
USL s

41. Statistics Lite Shifted 3s Process
LSL
USL s
1.5 s mean shift

42. Statistics Lite Shifted 3s Process
Non-conforming
Product
66,800 DPMO
LSL
USL s
1.5 s mean shift

43. Statistics Lite Shifted 3s Process
Cost to your company – 15-30% of sales
Non-conforming
Product
66,800 DPMO
LSL
USL s
1.5 s mean shift

44. Cost of Poor Quality Lost Opportunity 5-8% of Sales 15-22% of Sales
Inspection
Overtime
Downtime
Rejects
Rework
15-22%
of Sales
Lost sales
Long cycle times
Cost of Capital
Late delivery
(less obvious)
Redundant Operations
Lost Opportunity
Once you begin tracking true defects, your cost of poor quality will correlate to the DPU metric.
It’s highly likely that currently no data collection system, manual or automated, exists to track your project “defects”.
Some product defects are more costly than others. The top line in the chart above represents an increasing rate for the cost of each additional defect.
You and your team should spend the time to carefully and accurately define defects for your project.
___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Inaccurate Reports
Expediting costs
Excessive Planning
Lost Customer Loyalty

45. Statistics Lite Centered 6s Process
LSL
USL s

46. Statistics Lite Shifted 6s Process
LSL
USL s
1.5 s mean shift

47. Statistics Lite Shifted 6s Process
Non-conforming
Product
3.4 DPMO
LSL
USL s
1.5 s mean shift

48. Why Six Sigma? 99% (3.8 Sigma) 99.99966% (6 Sigma)
20,000 lost articles of mail per hour
5,000 incorrect surgical operations per week
Two short or long landings at most major airports each day
200,000 wrong drug prescriptions each year
No electricity for almost seven hours each month
Seven articles lost per hour
2 incorrect operations per week
One short or long landing every five years
70 wrong prescriptions per year
One hour without electricity every 34 years

49. Six Sigma Breakthrough Strategy
Define
Measure
Analyze
Improve
Control

50. DMADV - DMAIC
New Processes
Existing Processes

51. Define - Selecting Projects
The project must relate to customer satisfaction
The project’s results must reduce defects by some threshold amount
The project should achieve some threshold of cost savings.

52. Criteria for Project Selection
Does it involve recurring events?
Is the scope narrow?
Do measures exist?
Do you have control of the process?

53. Define Phase, Continued
If these criteria are met then:
1) Identify the customers involved, both internal and external to the function.
2) Find out what the customer’s CT’s are (Critical to Quality, Critical to Delivery, Critical to Cost, etc).
3) Define the project scope and goals.
4) Map the process to be improved.

54. Define Phase - Tools Project Charter Stakeholder Analysis
Affinity Diagram
SIPOC
Voice of the Customer
CT Tree
Kano Model
SWOT Analysis
Cause-and-Effect Diagrams
Supplier Segmentation
Project Management

55. Charter Problem statement Business case
Goals, milestones, success criteria, & deliverables
Project scope / boundaries
Roles & responsibilities
Stakeholder support / approval needed
What is the problem? Know the difference between a problem and a cause. The Rational Manager
Where is the value? Is there a burning platform? How much value and how much effort will be required to realize it?
Gantt charts, Strategies, Tactics, Objectives, Dates
Is the project sufficiently bounded?
The strategy should trickle down to personal objectives. Responsibility matrix
Whose approval do we need in order to be successful?

56. Define Phase Charter Development
Charter – An agreement between management and project team members about what the team will accomplish.

57. Charter: Providing Direction
You have to be careful if you don’t know where you’re going, ... because you might not get there.

58. Define Phase Charter – What it does
Clarifies expectations (what and why)
Keeps team focused
Reduces tampering
Reduces wandering
Reduces goal creep
Transfers ownership from management to team

59. Define Phase Charter – What it does
Provides overview of purpose
Describes why you are working on this project (business case)
Defines scope of project
Determines deliverables
Defines measures of success
Determines resources available

60. Potential Improvement
Business Case
Potential Improvement
Potential Impact
Improve quality
Reduce cost, inventory
Improve OTD
Shortages , inventory 
Select better suppliers
Q, $, LT, reduce inventory
Implement rating system
Improve supply efficiency, better suppliers
Reduce price
Reduce cost

61. Define Phase - Tools Project Charter Stakeholder Analysis
Affinity Diagram
SIPOC
Voice of the Customer
CT Tree
Kano Model
SWOT Analysis
Cause-and-Effect Diagrams
Supplier Segmentation
Project Management

62. SIPOC Example Ops Mgt Buyers Engrg. Mfg. Suppliers Inputs Processes
Outputs
Customers
Ops Mgt
Supplier Perf.
Supplier
Evaluation
Survey
Buyers
Complaints
Rating system
Engrg.
Tech Reqts
Improved Supplier Perform.
Engineering
Mfg.
Commit. to suppliers
Supplier Complaints

63. SWOT Analysis Positive Negative Internal Strengths Weaknesses External
Opportunities
Threats

64. Define Outputs
Once completed, the Define Phase should answer the following questions:
1) Who is the customer?
2) What matters?
3) What is the scope?
4) What defect am I trying to reduce?
5) What are the improvement targets?

65. Define Phase Toll Gate Review
Submit project storyboard to sponsor
Toll Gate review presentation
Sponsor provides feedback
Project corrections are made prior to proceeding to the next phase

66. The Measure Phase Purpose
To collect current performance of the process identified in the Define phase
This data is used to determine sources of variation and serve as a benchmark to validate improvements

67. Measurements
Benefits of having good data need to outweigh the costs of getting it
What does this measure do for the Project?

68. The Measure Phase
Upon completion of the measure phase, Project Teams will have:
A plan for collecting data that specifies the type of data needed and techniques for collecting the data
A validated measurement system that ensures the accuracy and consistency of the data collected
A sufficient data set for problem analysis

69. Measure - Key Concepts Measurement Variation Data Data Collection Plan
Exists naturally in any process and is the reason Six Sigma projects are undertaken
Data
Data Collection Plan
Measurement System Analysis
Ensures measurement techniques are reproducible and repeatable

70. Recording Measurements
3 stages
The output stage
These tell how well customer needs are being met
Parts of the process
These are taken at critical points in the process
The input stage
These evaluate contributions to the process that are turned into value for the customer

71. Recording Measurements
Output Stage
Shortages
Line shutdowns
Quality – discrepant material
Material price variances
Internal customer survey

72. Recording Measurements
Parts of the process
Project milestones
Supplier ship on time performance
Supplier OTD
Supplier internal throughput yield
Supplier suggested cost reductions

73. Recording Measurements
The input stage
Supplier base size
% Buyers with degrees
% of spend covered by LTC’s
% of spend from reverse auction
Supplier FMEA’s

74. Operational Definitions
Walter Shewhart, the inventor of statistical process control, believed his work on operational definitions to be of greater importance than his work on control charts.

75. Operational Definitions
“An operational definition is a procedure agreed upon for translation of a concept into measurement of some kind.”
Operational definitions should be
valid and reliable.
Deming, 1986

76. Operational Definitions?
Slump, I ain’t in no slump. I just ain’t hitting.

77. Operational Definitions
On-Time Delivery
On-Time Payment
Late
Defective
Clean
Good communication
Engineering support
Do you, your management, and your suppliers agree on these definitions?

78. Determining Data Type What do we want to know?
Review materials developed during design phase
What characteristics do we need to learn more about?

79. Data Collection Plan What data will be collected? Why is it needed?
Who is responsible?
How will it be collected?
When will it be collected?
Where will it be collected?

80. Measurement System Analysis
After Data Collection Plan is complete, it needs to be verified before actual data is collected
MSA is performed on a regular basis
MSA ends when a high level of confidence is reached that the data collected accurately depicts the variation in the process

81. Analyze Phase
The analyze phase allows the Project Team to target improvement opportunities by taking a closer look at the data.

82. Analyze Phase
Capability Analysis - establishing current performance level
Graphical Analysis - a visual indication of performance using graphs
Root Cause Analysis – developing a hypothesis about the causes of variation
Root Cause Verification – verifying that the planned action will generate the desired improvement

83. Process Capability
When selecting a process to perform an operation, the inherent variability of process output should be compared to the range or tolerances allowed by the designer’s specifications.

84. Much of the process output fits within specification width
Process Capability
process distribution
Lower Specification
Upper Specification
Much of the process output fits within specification width
In other words, is the process capable of producing the item
within specifications?
Almost all of the process output fits within the specification width
A significant portion of the process output falls outside of the specification width

85. Analyze Phase Cause Hypotheses
Identifying Obvious Process Problems
Disconnects
Bottlenecks
Redundancies
Unnecessary distance
Rework
Decision points
Process Map Review

86. Analyze Phase Cause Hypotheses
Quantifying Value-Added Steps
Value-Adding
Value-Enabling
Non-Value-Adding
Process Map Review

87. Analyze Phase Cause Hypotheses
Process Time Analysis
Work time (value, but often only 5%)
Wait (& queue) time (usually dominates)
Setup time (tremendous leverage)
Move time (process dependent)

88. Analyze Phase Tools Brainstorming . . . And beyond! Process Maps
Cause-and-Effect Diagrams
Focused Problem Statement
Statistical Tools

89. Cause-and-Effect Diagrams Supplier Failure - Causes

90. Elements of Improve Phase
Generate Improvement Alternatives
Create a “Should Be” Process Map
Conduct FMEA
Perform Cost/Benefit Analysis
Pilot
Validate Improvement

91. Improve Phase Elements
Generate Improvement Alternatives
Create a “Should Be” Process Map
Conduct FMEA
Perform Cost/Benefit Analysis
Pilot
Validate Improvement

92. Failure Modes Effects Analysis
Identify failure modes – How can this product or process fail?
Identify failure effects – What happens when this failure occurs?
Identify potential causes of the effects & their probability of occurring.
Rate the likelihood of detecting the occurrence.

93. FMEA - Output Ranked list of products that contribute to risk
List of actions and persons responsible for addressing the risk
Revised ranked priority list

94. Improvement Phase Methods
UCL
LCL
Process not centered
and not in control
Process centered
and in control
Evidence of additional
improvements

95. Review of Improvement Phase
Generate Improvement Alternatives
Create a “Should Be” Process Map
Conduct FMEA
Perform Cost/Benefit Analysis
Pilot
Validate Improvement

96. Generating Improvement Alternatives
Define Improvement Criteria
Generate Possible Improvements
Evaluate Improvements and Make Best Choice

97. Pilot Benefits of Pilot
Determine best way to implement the improvement
Lowers risk of failure
Increases opportunity for feedback
Obtain buy-in from affected personnel
Provides opportunity to revise the improvement before full implementation

98. Stakeholder Analysis People or Groups Level of Commitment Buy Mfg Eng
Enthusiastic Support
Help it work
Compliant
Hesitant X
Indifferent
Uncooperative
Opposed
Hostile

99. Review of Implementation Phase
Generate Improvement Alternatives
Create a “Should Be” Process Map
Conduct FMEA
Perform Cost/Benefit Analysis
Pilot
Validate Improvement

100. Control Phase Why is it important?
The Control Phase begins as the project team tries to eliminate errors by “Mistake Proofing” their improvement alternative.
Mistake Proofing attempts to eliminate the opportunities for error.

101. Control Phase Why is it important?
Mistake Proofing tries to make it impossible for an operation to be performed incorrectly, and/or correct errors before they are passed to the next worker, where they might become a defect.

102. Control Phase #2 During the Control Phase the Project team will:
1) Develop a plan to make sure the measurement system will remain relevant over the long term.
2) Establish Control Charts the process owner will use to manage the process.
3) Create a Reaction Plan to address situations that might cause the process to move out of control.

103. Control Phase #3 The Control Phase ends when:
1) Standard Operating Procedures have been updated.
2) Process Operators, the people who do the job, have been trained for the new process.
Once completed, the Control Phase should sustain the gains the project made while implementing ongoing process controls.

104. Control Phase #4 When is a project complete?
1) When other Black Belts can see the ongoing controls work
2) When the customer sees the results
3) When the business sees the money.

105. Six Sigma Six Sigma People
Executives
Champions (deployment, project)
Master Black Belts
Black Belts
Green Belts

106. Control Phase Methods During the Control Phase the Project team will:
1) Develop a plan to make sure the measurement system will remain relevant over the long term.
2) Establish Control Charts the process owner will use to manage the process.
3) Create a Control Plan to address situations that might cause the process to move out of control.

107. Statistical Process Control (SPC)
Chance variations are the many sources of variation within a process that is in statistical control. They behave like a constant system of random chance causes.
If only natural causes of variation are present, the output of a process forms a distribution that is stable over time and is predictable.

108. Statistical Process Control (SPC)
Assignable variation in a process can be traced to a specific reason.
Machine wear
Misadjusted equipment
Fatigued or untrained workers
If assignable causes of variation are present, the process output is not stable over time and is not predictable.

109. SPC - Assignable Causes
The operational definition of assignable variation is variation that causes out-of-control points on a control chart.

110. Natural Patterns or Variations
Natural patterns exhibit the following characteristics:
Most of the points are near the centerline.
A few points spread out and approach the control limits.
None (or only on rare occasions) of the points exceeds the control limits.
Reference: Statistical Quality Control Handbook, Western Electric

111. Unnatural Patterns or Variations
Unnatural patterns exhibit the following characteristics:
Absence of points near the centerline produces a pattern known as a “mixture.”
Absence of points near the control limits produces an unnatural pattern known as “stratification.”
Presence of points outside of the control limits produces an unnatural pattern known as “instability.”
Reference: Statistical Quality Control Handbook, Western Electric

112. Tests for Unnatural Patterns
Instability
A single point falls outside of the 3 sigma control limits.
Two out of three successive points fall in the outer one third of the control limits.
Four out of five successive points fall in the outer two thirds of the control limits.
Eight successive points fall on one side of the centerline.
Systematic variable
A long series of points are high, low, high, low without interruption.
Reference: Statistical Quality Control Handbook, Western Electric

113. Statistical Process Control Why use averages?
To create a normal distribution
Averages are more sensitive to change than individuals

114. Central Limit Theorem Simulation
The distribution of a sample approaches normal even when the parent population is not normally distributed.

115. Control Phase Mean and Range Charts
Drift Detected
No drift detected
Process
Distribution
process mean drifting upward
UCL
LCL
x-Chart
UCL
LCL
R-chart

116. Control Phase Mean and Range Charts
No shift detected
Increase detected
Process
Distribution
process variability increasing
UCL
LCL
x-Chart
UCL
LCL
R-chart

117. Statistical Process Control
Tolerance or specification limits
Defined by an engineer
Related to product design requirements
Control limits
Defined by the process
Related to the variation in the process
Unrelated to product needs

118. Control Phase Control Plans
Structured approach for designing value added control methods
Control actions necessary to ensure output quality
May include controls anywhere in the process

119. Control Phase Radar Chart
Product Features - 
Days Late
Data Entry Errors
___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Savings by Project

120. Control Phase Radar Chart
Defect Levels by Supplier
___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

121. Final Toll Gate Review Submit project storyboard to sponsor
Toll Gate review presentation
Did the team carry out the agreed upon tasks?
Did the team achieve the desired results?
Sponsor provides feedback
Project corrections are made prior to termination or proceeding to next cycle

122. Why TQM Fails Lack of Top Management Commitment
Wasted Education & Training
Lack of Short-Term Results
Failure to Empower Employees
Commitment
Up Front
Appropriate
Training
Biz Case
Threshold
Charter
Brown, Hitchcock, and Willard

123. Why Six Sigma Fails (and it does)
Lack of Top Management Commitment
Interdepartmental / cross-functional issues
Communication
People

124. Kimball Bullington, Ph.D.
Quality Tools
Kimball Bullington, Ph.D.

125. References Books: Web sites: Six Sigma Pocket Guide (Rath & Strong’s)
The Black Belt Memory Jogger (GOAL / QPC)
Six Sigma (Harry and Schroeder)
Implementing Six Sigma (Breyfogle)
The Six Sigma Way Team Fieldbook (Pande, et al)
The Vision of Six Sigma: A roadmap for breakthrough (Harry)
Why TQM Fails and What To Do About It (Brown, Hitchcock, & Willard)
Web sites: