Dr. Didik Wahjudi, M.Sc., M.Eng.

Petra Christian University

Objectives
As a result of attending this course the participant will
be able to:
Describe the Six Sigma Breakthrough strategy
Understand the Champions role in the Six Sigma Initiative
Relate the roles and responsibilities of the Champion, Black Belt,
Green Belt and Team Members
Identify projects with high probability for success
Understand the DMAIC methodology and how it applies to
improvement projects
Establish and utilize dashboard metrics
Assist in project management and project goal completion

Presentation Outline

Section I

Six Sigma Introduction

Section II

Management and Organizational Infrastructure

for Six Sigma

Section III

DMAIC Breakthrough Methodology

Section I

Section I Six Sigma Introduction

What is Six Sigma?
Three elements of Six Sigma
DMAIC roadmap
Expected benefits of Six Sigma
Corporate results of Six Sigma

Technical Definition of Six Sigma

Technical Definition (Motorola)
75%
1.5 s

LSL

USL

12.5%

12.5%
Cp=2 Cpk=1.5

3.4 DPMO

- 6s

Cp=2 Cpk=1.5

3.4 DPMO

Cp=Cpk = 2
-5s

-4s

-3 s

-2s

6s to LSL

-1s

+1s

+2s

+3s

+4s

+5s

+6s

6s to USL

Evolution to:
A Management driven, scientific methodology for product and
process improvement which creates breakthroughs in financial
performance and customer satisfaction

What is Six-Sigma?

Management mandated and directed improvement

program focused on breakthroughs in financial
performance and customer satisfaction

Uses Champions, Black Belts and Green Belts to

facilitate change

Focused on core business and customer needs

A systematic method for process and product

improvement

A Greek symbol for measuring performance variation

A metric for evaluating performance quality

A standard of excellence (3.4 defects per million

opportunities)

Customer Satisfaction + Efficient Systems =

Improved Profitability

Two types of projects to improve financial performance:

Increase Revenue Grow the Business
Improve Customer satisfaction, sales, capacity and market position
Decrease the Cost of Goods Sold
Reduce variation and defects
Improve yields
Understand root cause of issues and eliminate the source of problems
Automate process workflow
Improve process performance and reduce waste using lean principles
7

Reduce Process Variation & Defect Rates

Off-Target

Too Much Variation

Center
Process

Centered
On-Target

Reduce
Spread

The objective is to understand customer

requirements and reduce
process variation and defects
8

Breakthrough and Continuous Improvement

Breakthrough Strategy

Three Emphasis Areas for Six Sigma

Focused on product design excellence, design for manufacturability,

Customer satisfaction and cost reduction within all components of the
development and new product introduction process.
Focused on operational excellence, Customer satisfaction and cost
reduction within all components of the operation. Areas of focus
include Sales, HR, Finance, Materials, etc.
Focused on product production excellence, variation and defect
reduction, lean production techniques, Customer satisfaction and cost
reduction within all components of the production and delivery
process.
Six Sigma touches on all aspects of the Business Enterprise

10

Past Improvement Activity Failure Modes

Unsuccessful Projects

No clear management mandate

No roadmap for the project
No dedicated resources
No management and performance review
No ability to measure performance and
examine effectiveness not sure if we
accomplished anything

No financial ROI during project definition and

measurement at completion
No clear answer as to why are we doing this
project?

11

What Makes Six Sigma Work?

Select and work on the most important
problems and projects to the business
and customers
Assure those projects impact customer
satisfaction and financial performance
Allocate the time to get the work done
Have your best people work on them
Provide those individuals with all the
training, tools, and resources they need
to make the performance breakthrough
Provide management direction, support
and routine review of performance
Require a well thought out, objective and
data driven solution

Verify the dollar savings of your efforts

Sustain the benefits of the solution over
time
12

Six Sigma 3 Critical Elements

Defining and using business objectives and metrics that focus our
attention on performance and defects that are most important to the
customer and have the greatest potential for impacting the bottom line

Dedicated resources
and focused infrastructure, trained in
the use of the 6
Sigma problem
solving and process
improvement
methodology

Systematic
Approach to
improving
performance and
reducing defects
which are important
to the customer
(qualitative &
statistical)

13

Strategic Business and Quality Metrics

CSI, Sales, delivery times, cost per
unit, Yield, DPU, DPMO, customer
response times, Web hit rates,
Rework/scrap rates, etc.
(Critical Business Elements)

Management objectives
and dashboard forms the
core of the strategic
Business & Quality
Metrics and is flowed
down to other
departments and process
areas to provide leading
and lagging indicators of
performance
14

Hierarchy of Operational Dashboards

Executive
Dashboard

Can we see measurable

progress in our key business
critical metrics?

Level 1
Processes

Director
Level

Level 2
Processes

Manager
Level
Level 3
Processes

Engineering
Level
Level 4
Processes

Operator
Level
15

Six Sigma DMAIC Road Map

Define
Identify Project, Champion and Project Owner
Determine Customer Requirements and CTQs
Define Problem, Objective, Goals and Benefits
Define Stakeholder/Resource Analysis
Map the Process
Develop Project Plan

Key Analytical Tools

Process Mapping and
Modeling

Measure
Determine Critical Xs and Ys
Determine Operational Definitions
Establish Performance Standards
Develop Data Collection and Sampling Plan
Validate the Measurements
Measurement Systems Analysis
Determine Process Capability and Baseline

Measurement Systems
Analysis & Process
Capability

Analyze
Benchmark the Process or Product
Establish Causal Relationships Using Data
Analysis of the Process Map
Determine Root Cause(s) Using Data

Statistical Tests, Modeling &

Root Cause Analysis

Improve
Design of Experiments
Develop Solution Alternatives
Assess Risks and Benefits of Solution Alternatives
Validate Solution using a Pilot
Implement Solution
Determine Solution Effectiveness using Data

Control
Statistical Process Control
Determine Needed Controls (measurement, design, etc.)
Implement and Validate Controls
Develop Transfer Plan
Realize Benefits of Implementing Solution
Close Project and Communicate Results

Brainstorming, Design of
Experiments, FMEA, &
Validation
Statistical Process Control
16

Process Flow for achieving 70%+ Improvement

Champion
Select project that is
considered critical to
operational success

Review
performance
and assure
results

Review and
approve
solutions

Authorize
process
change

Communicate
and celebrate
results

Black Belt
Form team and
follow DMAIC for
project management

Process or
Product

Understand root
cause of problem

Develop alternative
solutions and
complete benefit and
risk assessment

Validate
Solution

Determine
financial
benefit

Implement and
standardize
process changes

For a breakthrough to occur everything is on the table

17

Six Sigma Results

Improved customer satisfaction
Assure products and services meet customer requirements
Improved quality, efficiency and cost of goods sold
Waste, defect and variation reduction
Financial savings (hard and soft)
Self-sustaining infrastructure
Defined roles and responsibilities
Empower Champions, Black Belts and all employees to make
meaningful improvements in performance
Communication
Commonality
Language, training materials, tools & software
Methodology
Expectations
Solutions
Financial tracking (establish, maintain metrics)
18

Honeywell & DOW Results

"We achieved $600 million in Six Sigma cost savings in 1999, but
cost savings are only one part of the story. Delighting customers and
accelerating growth completes the picture. When we are more
efficient and improve work flow throughout every function in the
company, we provide tremendous added value to our customers
through higher quality solutions that are more competitively priced,
delivered on time and invoiced correctly. That makes us a more
desirable business partner."
- Honeywell 1999 Annual Report http://www-a.honeywell.com/investor/ar99_intro_smarter.html

"We expect Six Sigma to elevate our company to an entirely new level
of operational performance, delivering $1.5 billion in EBIT
cumulatively by 2003 from the combined impact of revenue growth,
cost reductions and asset utilization."
- Dow 1999 Annual Report http://www.dow.com/financial/99ann/letter03.htm

19

GE & DuPont Results

"The Six Sigma initiative is in its fifth year its fifth trip through the
operating system. From a standing start in 1996, with no financial
benefit to the Company, it has flourished to the point where it
produced more than $2 billion in benefits in 1999, with much more to
come this decade."
- GE 1999 Annual Report http://www.ge.com/annual99/letter/letter_three.html

"Six Sigma implementation continues to gain momentum. At the end

of the year 2000, there were about 1,100 trained Black Belts and over
3,400 active projects. The potential pretax benefit from active projects
was $700 million."
- DuPont Fourth Quarter and Full Year 2000 Earnings Report http://www.dupont.com/corp/whats-new/releases/01/010124.html

20

Section II

Section II Management Infrastructure for Six Sigma

Site Champion and Executive Staff

Hands on Champions
Master Black Belt
Black Belts / Green Belts
All Employees

21

Interrelationship Digraph of Six Sigma Infrastructure

22

Site Champion and Executive Staff

Functions
Set the vision
Create the mandate for improvement
Initiate and fund the activity

Establish and maintain the reporting structure

Responsibilities (10%+ of time)
Identify Champions in each functional area

Monthly review of projects by Champion

Measure Champion results
Training
4 hour Executive Overview
2 day Champion Training
23

Hands-On Champion
Functions
Communicate the vision

Create the mandate for improvement

Provide direction and remove barriers
Achieve financial results and communicate
success
Responsibilities (10%+ of time)
Identify Black Belts and Green Belts
Identify and approve all Six Sigma projects
Biweekly review of all projects
Measure Black Belt performance
Training

2 day Champion Training

24

Master Black Belt

Functions
Provide technical expertise on Six Sigma and Lean
methodology to Black Belts and Green Belts
Work in support of the Black Belt and Champion
Assist in education and training activities
Responsibilities (100% of time)
Work daily with team members, Black Belts and
Champions
Participate in the review of projects

Monitor all Six Sigma projects

Training
15 day Black Belt Training, 2 years minimum as a
Black Belt and a Masters Degree in a related field
25

Black Belts and Green Belts

Functions
Black Belts 100% dedicated for 2 years to process
improvement, Green Belts 20%
Work on improvement projects with other Green
Belts and Team Members
Achieve financial results for each project Goal of
$350K+

Responsibilities (100 20%+ of time)

Use the DMAIC methodology to create
breakthroughs in performance
Report progress to the Champion
Hold team meetings and provide excellent project
management

Work with the Master Black Belt

Training
15 day Black Belt Training
5 day Green Belt Training
26

All Employees
Functions
Work to achieve excellence in daily work
Participate in Six Sigma projects
Support team activities
Identify opportunities for improvement
Responsibilities (5-10%+ of time)
Participate in Six Sigma activities as
requested
Complete action items as assigned by the
team
Attend team meetings
Training

1 day Six Sigma Employee training

27

Section III

Section III

DMAIC Breakthrough Methodology

Define
Measure
Analyze
Improve
Control

28

DMAIC Process Improvement Methodology

29

DMAIC Process

Establish Controls on the critical Xs so

the improvements will be maintained

Identify ways
to improve
the process
and validate
the solution

X1
X2
X3
X4

PROCESS

Y1
Y2
Y3

Metrics (Ys) linked to

CTQs
Define the Problem
Project Objective
Project Goal

Measure and Analyze

data and process
performance to determine
the critical variables and
root cause of the problem

30

Six Sigma DMAIC Define

Define Activities
Identify Project, Champion and Project Owner
Determine Customer Requirements and CTQs
Define Problem, Objective, Goals and Benefits
Define Stakeholder/Resource Analysis
Map the Process
Develop Project Plan

Define Quality Tools

Project Charter and Plan
Effort/Impact Analysis
Process Mapping
Tree Diagram

31

Voice of the Customer (VOC)

DMAIC
Methodology
Define

Why dont you guys learn how to

meet a schedule?
Your service quality too poor!
When will you learn how to provide
service and a Customer first attitude?

Why dont you tell us when there is a

problem?
I sent out e-mail after e-mail with no
response!

Why do you try and make your

customers responsible for your quality
problems?
Your RMA frequency is unacceptable

RMA = Return Merchandise Authorization

VOC is often full of emotions.

We need to restate customer
statements into fact based,
performance requirements
that we need to focus on
Of course Customers
expect perfection

32

Critical to Quality (CTQ) Characteristics

Use the tree diagram to

define Customer CTQs

Customer
Requirement
Customer
Needs

Product
arrives on-time

DMAIC
Methodology
Define

Detailed
Specifications
Response
(Y)

Performance to
schedule

Measure

Deviation from schedule in

completed units

Target

100% of committed ships

prior to 5:00 pm as received
on Customer receiving dock

Specification
Limit(s)
Allowable
defect
Rate

LSL = 0 hours late

USL = 6 hours early

< 3.4 DPMO

33

Moving to Specific Candidate Projects

DMAIC
Methodology
Define

Champions drive the project selection as they own the

business objectives aligned to the Executive Staff

Critically
examine
Business
Objectives
and select
projects
aligned to
them with
financial
impact and
benefits

Interview
Customers
(Internal &
External), on
core business
issues and
opportunities
for
improvement

Complete CTQ
gap analysis
and
prioritization
Determine a
candidate
project list

Estimate
project benefits
Use Voice of
in financial and
the Customer
measurable
when collecting terms & rank
and analyzing
projects by
data
their impact

Determine
the effort
required for
each project

Conduct effort to
impact analysis and
prioritize the project
list
Select the top
projects and
determine the
Champion
and Owner

Candidate
Six Sigma
Project(s)
With
financial
impact!!!

34

DMAIC
Methodology
Define

Potential Projects

Manufacturing
Materials
Management
NPI
Finance
Design
HR

Conduct effort
to impact
analysis and
prioritize the
project list
Project
1
2
3
4
5
6
7
8
9
10

Effort
6
3
4
7
10
2
5
8
1
9

Candidate Six
Sigma Project(s)

Impact
1
3
3
3
3
6
6
6
9
9

Project
Champion and
Owner
Effort / Impact Analysis
10
9
8
7

Impact

Determine a
candidate project
list and potential
benefits:

6
Impact

5
4
3
2
1

Projects with high impact are

preferred
NPI = New Product Introduction

0
0

10

12

Effort

35

Detailed Project Selection Criteria

DMAIC
Methodology
Define

Achieving breakthroughs requires prioritization of opportunities.

There are many more opportunities than time and resources to
work on them.
When selecting a process, we are trying to prioritize exactly which
problem to solve. If the problem is clear we move on to define the
problem.

In selecting a project, consider these issues:

a.
b.
c.
d.
e.
f.

Financial and strategic benefits

Improved customer satisfaction, CSI
Compatible with current goals and objectives
Translatable to other areas of the business
Probability of success
Level of effort, amount of resources needed to complete project

36

DMAIC
Methodology
Define

Example: Prioritizing Projects

Are your projects the things you like to do, easy to do or important to do?

Rank
2
3
4
5
6
1
7

Potential Projects
Reduce lead time
Receiving process
Customer complaints
MRO material reduction
Change control system
Inventory reduction
Chip test yields

Project name

Benefits
Business Goals
Champion Financial Translatability Defined Supports
HC
9
9
9
9
MP
6
9
6
3
DS
6
6
6
9
LC
6
3
6
9
JM
6
9
0
6
AB
9
9
9
9
JF
6
3
0
0

Manager
responsible
for results

Hard dollar
savings

Solutions are likely

to be applicable
across the site and
the corporation

3 < $100k
6 = $300k
9> $1M

3 = local
6 = some external
9 = all locations

Currently
defined
business
objective

Supports
immediate
goals and
objectives
for the org.

Clear
6
9
9
9
6
9
9

Clear problem
definition with
clear project
boundaries

Risk
Complexity
6
6
6
6
6
9
6

Complexity is a
function of time to
complete and the
difficulty of the
problem. Scope
(target for BB
project is 7-8)

p(S)
3
9
6
6
6
6
6

Total
80%
77%
73%
70%
63%
93%
53%
0%
0%
0%

Probability
of success

3 = <3 months
6= 4-5 months
9= 6+ months

TLC, 2002

37

DMAIC
Methodology
Define

Develop Charter
SIX SIGMA
Project Charter

In this step you will establish

direction for the project
by documenting

Resource Requirements
Project No:
Project Name:
Project Leader:
GB/BB:
Master BB:
H/O Champion:
Team Members: Name
Function

Problem

% Time

Initials

General Information
Location:
Business
Segment:
Business
Objective:
Customer
CTQ(s):
Current
Process
Capability: Sigma, Cpk , DPMO, Cycle-time, etc.
Date:

Review Schedule
Activity
Date
Start
D
M
A
I
C
Close

Project Definition
Project Problem Statement:

Objective & Scope

Project Objective Statement:

Goal/target

Resource requirements

Financial benefits
Strategic benefits

Project Scope/Limitations:

Project Goals and Targets:

Project Plan:
See page 2 of the project charter. Project Plan and Gantt Chart
Expected Benefits:
Hard Dollar Savings:
Soft Dollar Savings:
Strategic:

Time frame:

Other Benefits:

Team resources

Project approval

Stakeholder Approval
Hands On Champion:
Name:
Signature:
Functional Manager:
Name:
Signature:
Other:
Name:
Signature:

Master Black Belt:

Name:
Signature:
Black / Green Belt:
Name:
Signature:
Other:
Name:
Signature:

Date:

38

Develop Charter Problem Statement

DMAIC
Methodology
Define

A clear description of the problem to

communicate to other people in the process
and rally support to improve it
A description of the issue or problem
What, when, where and how the problem occurs
What is critical to quality (CTQ) from the customer
perspective? What is nonconforming to
specifications?

Description of
the Pain

Define the boundaries of the problem, how big is the

problem?
What are the consequences of the problem to the
Company and or Customer?
Do not state a solution when describing a problem
39

DMAIC
Methodology
Define

State Objective and Scope

Project Objective and Scope

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?

Customer or Suppliers

Site or Line

Process
Process 1
Process 2

Process 3

40

DMAIC
Methodology
Define

Goal Statement

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.

Goal Statement:
Reduce late shipment costs (Express Mail) to all
customers by 70% from $1.5M to $45K by January 200x.

Where

When

How Much

41

DMAIC
Methodology
Define

Determine Resources
Determine the Stakeholders

Who will need to be involved and at what

level for this project to be successful?
Determine Team Members
Who will need to be on the team and at
what % of their time?
Determine any Capital, Test or HR
Requirements
What materials, testing, software
programming, outside services or
equipment will be needed? Are those costs
acceptable to management?
Other Support to be Successful

42

Benefits

DMAIC
Methodology
Define

Benefits may include any of the following:

Hard dollar savings (cost reduction)
Soft dollar savings (cost avoidance)
Improved Customer satisfaction
Improvement in the performance metrics (cycle time, yield, defects,
etc.)
Improved job satisfaction (reduction in frustration)
When considering benefits what must change for the savings to
occur?
43

Financial Benefits Example

DMAIC
Methodology
Define

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

$
$
$
$
$
$

73
24
58
20
5
27

$
$
$
$
$
$

Total per week for costs elements above

207

Total per Year

$ 10,782 k $ 9,525 k per Year

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.

44

Begin Mapping the Process with a SIPOC

DMAIC
Methodology
Define

45

Move to a detailed Process Map

DMAIC
Methodology
Define

46

Model and Automate Workflow

Discrete Transactions

Performance Monitoring and Improvement

JMP for analysis

and root cause
determination

Workflow
Automation

Database

47

Begin Management/Champion Reviews

DMAIC
Methodology
Define

Once the project charter has

been approved and the team
formed around the project it is
essential to begin periodic
management reviews of project
performance.
Black Belts and Green Belts meet
with Management to report
performance.
Champions report to executive
staff on project performance.
Where possible integrate reviews
into current management forums.

48

Six Sigma DMAIC Measure

DMAIC
Methodology
Measure

Measure Activities
Determine Project Critical Xs and Ys
Determine Operational Definitions
Establish Performance Standards
Develop Data Collection and Sampling Plan
Validate the Measurements
Measurement Systems Analysis
Determine Process Capability and Baseline

Measure Quality Tools

Quality Function Deployment (QFD)
Measurement Systems Analysis (MSA)
Check sheet
Process Capability
49

Measure Flow
Data Collection Plan
& Sample Size

List Of
Measures
(Xs and Ys)

Data Collection Plan

Define What to Measure

Measure

Type of
Measure

Name of
X or Y
parameter attribute or
or condition discrete
to be
data,
measured product or
process
data

Operational
Definition

Define How to Measure

Measurement Data Tags Needed
or Test Method to Stratify the Data

Clear definition of
Visual
the measurement
inspection
defined in such a
or automated
way as to achieve
test?
repeatable results Test instruments
from multiple
are defined.
observers
Procedures for
data collection
are defined.

Data tags are

defined for the
measure. Such
as: time, date,
location, tester,
line, customer,
buyer, operator,
etc.

Who will
Do it?

Data Collection
Method
Manual?
Spreadsheet?
Computer based?
etc.

Person(s)
Assigned

Sample Plan
What?

State
What
who has
measure is
the
being
responsibility?
collected

Where?

When?

How Many?

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

Baseline

Restate
Improvement
Goals

50

Determining Critical Xs and Ys

(Xs) Leading Process --> Product -->
XZY errors
Temperature
Offset
Viscosity
Pressure

DPU/Yield

Supplier,
Receiving
and Process
Times

Processing time

Scrap

Lagging (Ys)

Manufacturing
Cost of Quality

Rework, RMA

Wait time

Transaction Cycle
Time

Delivery time
Transactional
and product
defects and
errors by
operation

T&Cs,
planning
systems,
production
systems

Accuracy of transaction
Transaction time
Product or service quality

Customer
satisfaction

Inventory levels
Materials management

Materials costs
51

Using QFD to Prioritize and

Select Project Ys and Xs

DMAIC
Methodology
Measure

Current Measures

Delivery Time

RMAs

Customer Satisfaction

Defect Rate

Units delivered

Cum Yield

Unit Delivery Deviation from Commit

Deviation from target on delivery time

First Pass Yield

Time to Schedule Confirmation

Needed Measures

Importance

Product or Process:

4
1
2
5
7
6

3
9
0
3
3
0

0
0
9
3
0
0

3
6
6
6
3
3

0
0
9
6
3
0

3
3
0
3
0
3

0
3
3
0
0
0

3
3
0
0
0
6

3
9
0
0
0
0

0
3
6
9
3
0

9
3
0
0
0
9

Total

18

12

27

18

12

12

12

21

21

Unit of Measure
Raw data available?
Std. report available?
Reliable data source?
Frequency of the report?
Needed frequecy?
Target
Lower Limit
Upper Limit
Measurement capability
Measurement validated?
Competitive comparison
Ranking

Min.

CSI

PPM

Min.

Hrs.

Daily

Wk

Wk

Wk

Daily

Daily

Daily

Daily

Daily

n/a

Daily

Wk

Wk

Daily

Daily

Daily

Daily

Daily

Shift

Daily

5:00

Plan

100%

100%

1 hr.

4:45

n/a

4.5

n/a

5%

95%

-0:15

50%

n/a

5:15

n/a

100

5%

n/a

0:15

n/a

2 hr.

10

Customer Wants
Rapid schedule confirmation
On time performance
Defect free products
Routine cost reduction
Routine WIP reduction
Minimum lead times

Relationship key:

9
6
3
0

Strong relationship
Moderate relationship
Weak relationship
No relationship

Total
24
39
33
30
12
21

Translate
customer
requirements
into objective
measures
and prioritize
project
metrics

52

DMAIC
Methodology
Measure

Performance Standards for Each Y

All Processes Need Clear Specifications

Larger is Better

Smaller is Better

One-sided - lower specification limit only

Target zero and upper specification limit

LSL

Unacceptable

USL

Good

Target is Best
Two-sided specifications

Unacceptable

Good

USL

LSL
Good

Unacceptable

Unacceptable

53

DMAIC
Methodology
Measure

Develop Data Collection Plan

Elements for a data collection plan
Data Collection Plan
Define What to Measure

Measure

Type of
Measure

Name of
X or Y
parameter attribute or
or condition discrete
to be
data,
measured product or
process
data

Operational
Definition

Define How to Measure

Measurement
or Test Method

Clear definition of
Visual
the measurement
inspection
defined in such a
or automated
way as to achieve
test?
repeatable results Test instruments
from multiple
are defined.
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

Data means nothing without an understanding of what the

data is, how it was collected, and the conditions under which it
was measured
Data properly collected and analyzed will help us to understand the
root cause(s) of the problem
54

Collect Visual Data to See the Problem

Where possible use a Digital or Video Camera and

capture the defect or process problem. A picture is
worth a thousand words in understanding and
communication of the origin and nature of problems.

DMAIC
Methodology
Measure

55

DMAIC
Methodology
Measure

MSA for Validated Measurement

Short Term
Capability

Long Term
Capability

True Value

xA
xB
xC

Accuracy
Reproducibility

Repeatability

First period of time

xA
xB
xC

Stability

Second period of time

Useful for characterization of variable gages

and inspection capability
The data is only as good as the quality of the
measurements
56

Six Sigma DMAIC Road Map

DMAIC
Methodology
Analyze

Analyze Activities
Benchmark the Process or Product
Establish Causal Relationships Using Data
Analysis of the Process Map
Determine Root Cause(s) Using Data

Analyze Quality Tools

Statistical analysis of data
Cause and effect or event diagram
Histogram
Pareto diagram
Run chart
Scatter graph
57

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

Root Cause
Validation

% Explained and % Unexplained

58

Benchmarking

DMAIC
Methodology
Analyze

No company is the best at all it does. Typically

there are some core competencies that make a
company great. There is much to be learned
by benchmarking other companies who are the
best at what they do.
Benchmarking begins with identification of
the process or business area we wish to
examine. This should be clear from our
problem statement and objective.
Knowledge that there are other ways of doing
things can be obtained from benchmarking.

Benchmarking often speeds up the solution

generation process.

59

Root Cause Analogy

DMAIC
Methodology
Analyze

Like pulling weeds unless we address

the root that causes the problem, poor
results will keep coming back.
Addressing the results or 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

60

Forward Problem Solving Versus Backwards

DMAIC
Methodology
Analyze

Define Problem
Collect Problem Related Data
Analyze Data

Forward
Problem Solving

Determine Root Cause(s)

Validate

No Idea of Root Cause

Determine what is unexplained

Define Problem
List Probable Root Causes
Collect Supporting Data

Backwards
Problem Solving

Validate
Determine what is unexplained

Strong Idea of Root Cause

61

Evaluate Data to Determine Root Cause

DMAIC
Methodology
Analyze

Goal is to
determine cause &
effect relationships

62

Stratify Data to Understand Root Cause

Data

Vendor Purch.
Agent

Late

Deliveries

Order

Mat.

Week in

Date

Type

Quarter ordered

# Late Items

Collection

DMAIC
Methodology
Analyze

100
80
60
40
20
0

# Late Items

# Late Items

ASICs Connectors Flex c. SMT parts Solder

Material Type

25
20
15
10
5
0
Tom

25
20
15
10
5
0

Shauna

Kris

Adam

John

Purchasing Agent

IBM

DEC

HP
Vendor

NEC

MOT

Stratification: Analysis of the same

data grouped and classified by the
data tags to examine frequencies at
different logical levels
63

List Of Vital Few Xs and Critical Ys

DMAIC
Methodology
Analyze

Collected X and Y data

Hypothesis testing
t-test
F-test
ANOVA
Chi-square
Logistical regression
Regression analysis and Model fitting

List Of Probable Root Causes and key process sensitivities

64

Analysis of Data

DMAIC
Methodology
Analyze

Provides the ability to visualize the

relationship between process
variables and to understand the
source and fundamental behavior of
problems

65

DMAIC
Methodology
Analyze

Analyze the Process Map for Waste

When Mapping the Process Consider the Following:

What you think it is...

What it actually is...

What it could be...

66

Check List for Root Cause Determination

DMAIC
Methodology
Analyze

Check and investigate all those that apply to the problem under consideration

Measurement

Materials

Poor repeatability
Poor reproducibility
Poor accuracy
Poor stability
Poor linearity
Invalid measurement or test method
Excessive test or measurement

Methods

Incorrect definition
Incorrect sequence
Missing definitions, implicit rules
Poor process controls
Poor measurement controls
Lack of critical information
Incorrect information
Excessive queues or out-time
Handling
Orientation
Poor management of change
Incorrect revision

Machine (process & test)

Machine maintenance or calibration

Machine controls or lack of controls
Machine fault or defect
Software or network fault
Machine related contamination
Machine tooling or fixtures
Incorrect machine or tester

Defective
Off-specification
Contaminated
Improper storage conditions
Labeling or identification
Incorrect amount or quantity
Improper transportation or handling
Expiration date exceeded or unknown
Problem with product design
Wrong materials

Environment

Physical environment (temperature, lighting, ESD)

Security or safety systems
Distractions in the environment
Particulates
Contamination

Level of staffing
Training
Competency or experience
Supervision
Conflicting goals
Compliance with procedures
Personality issues
Physical ability or function
Cognitive ability and function
Knowledge deficit
Communication with peers or supervisor

People

67

5 Whys Example

DMAIC
Methodology
Analyze

State the problem, then ask why did this problem occur until
you reach root cause.

Missing Parts on the Board During NPI

Improper cassette loading Missing cassette
Failed to locate cassette
Supplier problem

Machine Malfunction

Part not available

Order incorrect Lack of lead time

Design change
Design error

Customer schedule

Performance improvement

WHAT?
Why?
Why?
Why?

Why?
Why?

68

Root Cause(s) Determination

DMAIC
Methodology
Analyze

Root Cause is achieved when we have identified the source of

the problem (use the 5+ Why approach)

For any problem there are typically many Roots. They vary in
frequency of occurrence. We need to know each root and their
associated frequency and or % of impact.
Proper Root Cause identification requires some explanation of
the failure mechanism based on understanding the process,
the physics, mechanics or chemistry. We must be able to
explain how changes in X cause changes in Y (otherwise we
dont understand it!)
Root Cause is verified when we can recreate or manipulate
the problem
To fix the Root Cause it must be controllable
Knowing Root Cause does not assure we know the solution to
the problem. Solutions can be formulated once we know the
root of the problem
69

List of Potential Root Causes

DMAIC
Methodology
Analyze

Final investigation needs to be made to determine if the

factors identified are actually the root cause of the problem
70

Summarize All Root Cause Analysis

DMAIC
Methodology
Analyze

For each possible root cause, determine those you will verify.
Summarize each possible root cause with the following codes:
Non Contributor (NC)

Does not contribute to the problem

Possible Contributor (PC)

A factor which may have an effect on

the response

Insufficient Data (ID)

Not enough data to determine the

effect of the factor (may require additional effort)

Data not available (IDX)

Data not available concerning the

factor

Root Cause (RC)

Determined to be a root cause of

the problem

Non Controllable Root Cause (RCX)

A root cause; however, outside the

control of the company, individual or
team
71

Root Cause(s) Validation and Summary

DMAIC
Methodology
Analyze

List all probable Root Cause(s)

Rank them in terms of effect size

Determine the additional tests
and or manipulation you plan to
use to validate the factors (X)
which have the greatest effect on
the response (Y)
Identify potential methods for
controlling the factors which
create the problem
When validation is complete
summarize all selected Root
Cause(s) and their effect size
72

DMAIC
Methodology
Analyze

Root Cause Analysis Example

Root Cause(s) Analysis Summary

Analysis Method

Process Review
Priority 1

Completed
Potential Factor

Investigation

Review Date

Who?

Method

Residual Material in Bulk Fill

15-Mar

Tien

Review use logs for PK

RC

Wrong Materials

9-Mar

Tien

Review inventory use for PK

NC

0%

Improper use of SOP

12-Mar

Kris

Review SOP use on the line

NC

0%

12-Mar

Anna

Verify Test Procedure

NC

0%

% Unexplained

0%

Result Effect

Validation

Validation

Method

Date

100% Test for residual material

28-Mar

Process Map
Priority 3

Visual Analysis
Priority 4

Cause and Effect (Event) Analysis

Priority 2

Invalid Assay
NC - Non Contributor

IDX - Data not available

PC - Partial Contributor

RC - Root Cause

ID - Insufficient Data

RCX - Root Cause Not Controllable

73

Six Sigma DMAIC Improve

DMAIC
Methodology
Improve

Improve Activities
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

Design of Experiments
Brainstorming
FMEA
Risk assessment

74

DMAIC
Methodology
Improve

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?

Examine
opportunities for
standardization
and translation
75

Brainstorm Potential Solutions

DMAIC
Methodology
Improve

Use general brainstorming techniques to generate

process and design change ideas which will eliminate the
root cause of the problem.
Separate ideas into short term and long term. Long term
with take 3 months or more to implement, short term is less
than 3 months.
Use voting and management involvement to generate
consensus on direction of approach

A single solution is not required at this point in the

improvement process. 2 - 3 short term solutions should be
selected and ranked. 1 to 2 long term solutions should also
be selected for evaluation and experimentation.

76

Consider Solutions That Remove Process Waste

Seven muda:
1.
2.
3.
4.
5.
6.
7.

DMAIC
Methodology
Improve

Over production ahead of demand

Waiting for the next process step or information
Transporting materials unnecessarily
Over processing
Inventory that is more than bare minimum
Motion by employees that is unnecessarily
Producing non-conforming parts

For each area of waste, examine each process step to determine if

waste occurs in the operation and how to remove the waste from the
production system

77

Solutions Centered on Lean Methods

DMAIC
Methodology
Improve

Production
Control

Material
Flow

Machine
Management

Reduce
inventories and
production
costs while
improving
quality

Workplace
Management

Process
Management

78

Consider Solutions that Automate the Workflow

Discrete Transactions

DMAIC
Methodology
Improve

Performance Monitoring and Improvement

JMP for Analysis

Periodic Management
Reports
Workflow
Automation

Database

79

DOE to Characterize, Improve the Process or

Product and Get Ready to Control

DMAIC
Methodology
Improve

Design experiments which improve the

robustness of the process. Improve process
parameter design, tolerance design and
reduce the source of defects.

Once experiments are

complete critical process
parameter sensitivities can
be modeled and determined
how to be targeted and
controlled.
80

Evaluate Cost, Complexity, Impact,

Benefit and Risk for Each Solution

DMAIC
Methodology
Improve

Assure solution costs and timelines are acceptable to

management

Determine the complexity of each solution in terms of

time and ease of completion

Identify potential impact (change to the baseline) of each

solution. Explain how each solution will address the root
cause and impact real change in performance.

Financial benefit = benefit of solution cost to

implement

Assess the risks associated with each solution and the

likelihood of occurrence

Determine need to involve/notify customer concerning

any product or process changes

Make sure that proper validation occurs associated with

the solution prior to across the board implementation
81

DMAIC
Methodology
Improve

Solution Evaluation Form

Solution Evaluation Form

List Root Cause(s)
Root Cause 1

List Solutions
Solutions 1

% Effect

Estimated Cost

Complexity

Estimated Benefit

Risk*

Priority

Validation?

% of
effect
solution
will have
on the
root cause

cost
of
solution
implementation

time or
effort to
implement
short term?
long term?

savings
due to
solution
or
improvement
in customer
satisfaction

High
Medium
or
Low

Order
of potential
solution
implmentation
1st, 2nd, 3rd

Need
to
verify
effectiveness
of solution

Root Cause 2

* Use Risk Assessment Form

Evaluate solution alternatives to assure

the best solution has been selected

82

DMAIC
Methodology
Improve

Evaluating Risk
Risk Assessment Form
List the Solution or
Major Elements of
Your Solution
1. New Software

2. Solution

Failure Mode
(What can go wrong)
List each failure mode
a) Software does not link
correctly to database
b) Software is not available on
time
c) Software needs revisions
prior to deployment

Severity
(1-10)
10 is Worst

Probability
Score
(10 is
(High scores
very probable) need attention)

10

60

42

27

Action
Plan

Owner

Due
Date

Need to test database link Fred

early during implementation James

15-Feb

Need to review progress

during weekly meeting

Bill
25-Feb
Watson

a)
b)
c)

3. Solution

a)
b)

Evaluate failure modes and probability

to minimize any negative effects of
changes to the product or process
83

Involve the Champion, Discuss with Management

DMAIC
Methodology
Improve

Once the team has completed their

work it is now time to review solutions
with Management.
Allow the team to benefit from a fresh
perspective and add Managements
insight and experience to the priorities.
This step improves the alignment of
Management to the Teams efforts

84

DMAIC
Methodology
Improve

Evaluate Improvements in Series

Retrained the
Workforce on
the Process

Installed
New
Process
Equipment

DPU
(miss, no change)

(hit, improvement)

Implement one solution at a time. Allow for sufficient time

to determine effect, then move to next solution.

85

Six Sigma DMAIC Road Map

DMAIC
Methodology
Control

Control Activities
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

86

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.

Review and approve

control plan with
Management

Realize savings and

determine final
financial benefits
and ROI

Determine long
term owner and
close the project
87

DMAIC
Methodology
Control

Benefits Of Control Phase

25
Process
Improvement

20

Process
Improvement

Process
Improvement

No Controls

10
5

121

113

105

97

89

81

73

65

57

49

41

33

25

17

Improvement

15

Time

88

DMAIC
Methodology
Control

Process Controls

TYPES of CONTROLS
Measurement Based Control

Test & Inspection

Management Dashboards & Review

Test (error prone)

Statistical Process Control

Inspection (poor effectiveness and costly)

Documentation

Periodic Checks

Process Flow Diagrams

Scheduled Maintenance

Product Drawings, Schematics

Scheduled Calibration

Process Management Plans

Training and Operator Certification

Written Procedures

Audits

Training

Periodic Management Reviews

Design

Incentives

Design out Product Problems

Measures which are associated with a bonus

Mistake Proofing

Measures which are associated with a penalty

Robust Design Concepts

89

DMAIC
Methodology
Control

Elements of a Control System

Sensor (measurement technology & control chart)

Allows the system to monitor the
current process performance
Alarm (control limits and trend rules)
Establish limit(s) and run rules
which require attention

Control Logic (OCAP)

A predefined set of actions to
follow that are alarm specific
Validate (next sample)
Assure the action was effective
Add alarms where needed and assure we do not ignore valid
alarms. SPC methods should be used to establish alarms.
90

Define Sustaining Requirements

DMAIC
Methodology
Control

What Vacuum will be

created when you leave?

Now that the solution is known and you are ready to finish the project.
Determine the activities that need to continue after the team is dissolved
Define who is doing them now who should be the long term owner?
Determine who needs to do them in a sustaining long term mode
Define the set of tasks or systems that must be installed prior to
completing the project and backing out of the work
What else will be needed to make the solution effective and sustainable?

From the above issues, develop a transfer plan

91

Realize the Benefits of Improvement

DMAIC
Methodology
Control

How did you justify the cost savings for the project?
What changes will have to occur to create the
savings?
Based on the impact of the benefits of the solution
have you made changes to the process to realize the
benefits?
Possible Actions:
Re-deploy personnel
Reorganize the floor

Reduce inventory levels in Planning System

Eliminate inspection or test operations
Modify Vendor/Customer contracts
Other cost saving changes to the operation
92

Close the Project or Improvement Team

DMAIC
Methodology
Control

The goals have been met and the team has been successful
The solutions have all been implemented and demonstrated to be

effective
Assure all documentation is complete
Determine what standardization opportunities are available
Make sure the accomplishments of the individual or team are
appropriately recognized personally and publicly
Measure and communicate results of the project (benefits and savings)
Celebrate! We did it!
93

Six Sigma Executive Overview Summary

There are tremendous improvement and savings available to

companies in their operations if they will mobilize their
resources toward reduction of waste and improvement of
quality

Six Sigma requires Leadership from the Executive Staff

The roadmap is clear and the methods for improvement are
well defined
Software tools make the data collection and analysis clear
Development of an implementation and training plan is the
next step

94