Proesos Miniitab Six Sigma

A Guide to Six
Sigma and Process

Improvement
for Practitioners
and Students
Second Edition
This page intentionally left blank
A Guide to Six
Sigma and Process
Improvement
for Practitioners
and Students
Foundations, DMAIC, Tools,
Cases, and Certification
Second Edition
Howard S. Gitlow
Richard J. Melnyck
David M. Levine
Publisher: Paul Boger
Editor-in-Chief: Amy Neidlinger
Executive Editor: Jeanne Glasser Levine
Operations Specialist: Jodi Kemper
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Managing Editor: Kristy Hart
Senior Project Editor: Betsy Gratner
Copy Editor: Geneil Breeze
Proofreader: Laura Hernandez
Indexer: Erika Millen
Senior Compositor: Gloria Schurick
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First Printing May 2015
ISBN-10: 0-13-392536-6
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Library of Congress Control Number: 2015932281
This book is dedicated to:
Shelly Gitlow
Ali Gitlow
Abraham Gitlow
Beatrice Gitlow
Jack Melnyck
Eileen Melnyck
Lee Levine
Reuben Levine
Contents
Section I Building a Foundation of Process Improvement

Fundamentals
Chapter 1 You Dont Have to Suffer from the Sunday Night Blues! . . . . . . . . .1
What Is the Objective of This Chapter? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Sarahs Story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Nine Principles of Process Improvement to Get the Most Out of This Book . . . . . . . .3
Structure of the Book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
Lets Go! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Chapter 2 Process and Quality Fundamentals . . . . . . . . . . . . . . . . . . . . . . . . . .17

What Is the Objective of This Chapter? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Process Fundamentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
What Is a Process? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Where Do Processes Exist? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Why Does Understanding Processes Matter?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
What Is a Feedback Loop and How Does It Fit into the Idea of a Process? . . . .19
Some Process Examples to Bring It All Together! . . . . . . . . . . . . . . . . . . . . . . . . .19
Variation Fundamentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
What Is Variation in a Process? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Why Does Variation Matter? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
What Are the Two Types of Variation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
How to Demonstrate the Two Types of Variation . . . . . . . . . . . . . . . . . . . . . . . . .27
Red Bead Experiment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
Quality Fundamentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
Goal Post View of Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
Continuous Improvement Definition of QualityTaguchi Loss Function . . . .32
More Quality Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
Takeaways from This Chapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
Chapter 3 Defining and Documenting a Process . . . . . . . . . . . . . . . . . . . . . . . .35
A Story to Illustrate the Importance of Defining and Documenting a Process . . . . .35
Fundamentals of Defining a Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
Who Owns the Process? Who Is Responsible for the Improvement
of the Process?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
What Are the Boundaries of the Process? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
What Are the Processs Objectives? What Measurements Are Being
Taken on the Process with Respect to Its Objectives? . . . . . . . . . . . . . . . . . . . . . .38
Fundamentals of Documenting a Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
How Do We Document the Flow of a Process? . . . . . . . . . . . . . . . . . . . . . . . . . . .39
Why and When Do We Use a Flowchart to Document a Process? . . . . . . . . . . .39
What Are the Different Types of Flowcharts and When Do We Use Each? . . . .40
What Method Do We Use to Create Flowcharts?. . . . . . . . . . . . . . . . . . . . . . . . . .43
Fundamentals of Analyzing a Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
How Do We Analyze Flowcharts? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
Things to Remember When Creating and Analyzing Flowcharts . . . . . . . . . . . .45
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
Section II Creating Your Toolbox for Process Improvement

Chapter 4 Understanding Data: Tools and Methods. . . . . . . . . . . . . . . . . . . . .47
What Is Data?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
Types of Numeric Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
Graphing Attribute Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
Bar Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
Pareto Diagrams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
Line Graphs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
Graphing Measurement Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54
Histogram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54
Dot Plot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
Run Chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56
Measures of Central Tendency for Measurement Data . . . . . . . . . . . . . . . . . . . . . . . . .59
Mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
Median . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
Mode. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
Contents vii
Measures of Central Tendency for Attribute Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
Proportion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
Measures of Variation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
Range . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
Sample Variance and Standard Deviation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
Understanding the Range, Variance, and Standard Deviation . . . . . . . . . . . . . .64
Measures of Shape. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66
Skewness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66
More on Interpreting the Standard Deviation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
How-To Guide for Understanding Data: Minitab 17 User Guide . . . . . . . . . . . . . . . .70
Using Minitab Worksheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
Opening and Saving Worksheets and Other Components . . . . . . . . . . . . . . . . . .71
Obtaining a Bar Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
Obtaining a Pareto Diagram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76
Obtaining a Line Graph (Time Series Plot). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78
Obtaining a Histogram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79
Obtaining a Dot Plot. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82
Obtaining a Run Chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84
Obtaining Descriptive Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88
Additional Readings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88
Chapter 5 Understanding Variation: Tools and Methods . . . . . . . . . . . . . . . .89

What Are the Objectives of This Chapter?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89
What Is Variation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89
Common Cause Variation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89
Special Cause Variation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .90
Using Control Charts to Understand Variation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .90
Attribute Control Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .90
Variables Control Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91
Understanding Control Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91
Rules for Determining Out of Control Points. . . . . . . . . . . . . . . . . . . . . . . . . . . . .93
Control Charts for Attribute Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98
P Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98
C Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104
U Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106
viii Contents
Control Charts for Measurement Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .108
Individuals and Moving Range (I-MR) Charts. . . . . . . . . . . . . . . . . . . . . . . . . . .109
X Bar and R Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112
X Bar and S Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115
Which Control Chart Should I Use? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119
Control Chart Case Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119
Measurement Systems Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126
Measurement System Analysis Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126
Gage R&R Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127
How-To Guide for Understanding Variation: Minitab User Guide
(Minitab Version 17, 2013) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131
Using Minitab to Obtain Zone Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131
Using Minitab for the P Chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131
Using Minitab for the C Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134
Using Minitab for the U Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134
Using Minitab for the Individual Value and Moving Range Charts . . . . . . . . .136
Using Minitab for the X Bar and R Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137
Using Minitab for the X Bar and S Charts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139
Takeaways from This Chapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .142
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143
Additional Readings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143
Chapter 6 Non-Quantitative Techniques: Tools and Methods . . . . . . . . . . .145

What Is the Objective of This Chapter? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145
High Level Overview and Examples of Non-Quantitative Tools and Methods . . . .145
Flowcharting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146
Voice of the Customer (VoC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146
Supplier-Input-Process-Output-Customer (SIPOC) Analysis . . . . . . . . . . . . . .149
Operational Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151
Failure Modes and Effects Analysis (FMEA) . . . . . . . . . . . . . . . . . . . . . . . . . . . .153
Check Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153
Brainstorming. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .155
Affinity Diagrams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156
Cause and Effect (Fishbone) Diagrams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157
Pareto Diagrams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159
Gantt Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159
Change Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160
Communication Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163
Contents ix
How-To Guide for Using Non-Quantitative Tools and Methods . . . . . . . . . . . . . . . .165
How to Do Flowcharting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165
How to Do a Voice of the Customer (VoC) Analysis . . . . . . . . . . . . . . . . . . . . . .166
How to Do a SIPOC Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172
How to Create Operational Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173
How to Do a Failure Modes and Effects Analysis (FMEA) . . . . . . . . . . . . . . . . .174
How to Do Check Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177
Brainstorming. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179
How to Do Affinity Diagrams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181
How to Do Cause and Effect Diagrams (C&E Diagrams) . . . . . . . . . . . . . . . . . .182
How to Do Pareto Diagrams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182
How to Do Gantt Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .185
How to Use Change Concepts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .185
How to Do Communication Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .201
Chapter 7 Overview of Process Improvement Methodologies. . . . . . . . . . . .203

SDSA Cycle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .203
SDSA Example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204
PDSA Cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .206
PDSA Example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .207
Kaizen/Rapid Improvement Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .209
Kaizen/Rapid Improvement Events Example. . . . . . . . . . . . . . . . . . . . . . . . . . . .210
DMAIC Model: Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .212
Define Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .213
Measure Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .213
Analyze Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .214
Improve Phase. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .216
Control Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .216
DMAIC Model Example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .216
DMADV Model: Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .218
Define Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .218
Measure Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .218
Analyze Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .218
Design Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .219
x Contents
Verify/Validate Phase. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .219
DMADV Model Example. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .219
Lean Thinking: Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .221
The 5S Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .221
Total Productive Maintenance (TPM). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .223
Quick Changeover (Single Minute Exchange of DiesSMED) . . . . . . . . . . . . .224
Poka-Yoke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .225
Value Streams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .226
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .228
Chapter 8 Project Identification and Prioritization:

Building a Project Pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .231
Project Identification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .231
Internal Proactive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .232
Internal Reactive. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .234
External Proactive. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .235
External Reactive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .236
Using a Dashboard for Finding Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .238
Structure of a Managerial Dashboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .238
Example of a Managerial Dashboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .239
Managing with a Dashboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .240
Project Screening and Scoping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .240
Questions to Ask to Ensure Project Is Viable . . . . . . . . . . . . . . . . . . . . . . . . . . . .241
Estimating Project Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .242
Project Methodology SelectionWhich Methodology Should I Use? . . . . . . .243
Estimating Time to Complete Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .245
Creating a High Level Project Charter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .246
Problem Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .247
Prioritizing and Selecting Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .247
Prioritizing Projects Using a Project Prioritization Matrix . . . . . . . . . . . . . . . .248
Final Project Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .250
Executing and Tracking Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .250
Allocating Resources to Execute the Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . .250
Monthly Steering Committee (Presidential) Reviews . . . . . . . . . . . . . . . . . . . . .251
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .252
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Section III Putting It All TogetherSix Sigma Projects
Chapter 9 Overview of Six Sigma Management . . . . . . . . . . . . . . . . . . . . . . . .253
Non-Technical Definition of Six Sigma Management . . . . . . . . . . . . . . . . . . . . . . . . .253
Technical Definition of Six Sigma. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253
Where Did Six Sigma Come From? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253
Benefits of Six Sigma Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .254
Key Ingredient for Success with Six Sigma Management . . . . . . . . . . . . . . . . . . . . . .255
Six Sigma Roles and Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .255
Senior Executive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .255
Executive Steering Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256
Project Champion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256
Process Owner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .257
Master Black Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .257
Black Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .258
Green Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .259
Green Belt Versus Black Belt Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .260
Six Sigma Management Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .260
Next Steps: Understanding the DMAIC Model. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .264
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265
Appendix 9.1 Technical Definition of Six Sigma Management . . . . . . . . . . . . . . . . .266
Chapter 10 DMAIC Model: D Is for Define. . . . . . . . . . . . . . . . . . . . . . . . . . .273

Purpose of the Define Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273
The Steps of the Define Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .274
Activate the Six Sigma Team. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .274
Project Charter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .276
SIPOC Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .283
Voice of the Customer Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .286
Definition of CTQ(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .288
Create an Initial Draft of the Project Objective. . . . . . . . . . . . . . . . . . . . . . . . . . .289
Tollgate Review: Go-No Go Decision Point . . . . . . . . . . . . . . . . . . . . . . . . . . . . .290
Keys to Success and Pitfalls to Avoid in the Define Phase. . . . . . . . . . . . . . . . . . . . . .291
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Case Study of the Define Phase: Reducing Patient No Shows in an
Outpatient Psychiatric ClinicDefine Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .292
Activate the Six Sigma Team. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .292
Project Charter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .293
SIPOC Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .299
Voice of the Customer Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .299
Definition of CTQ(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .308
Initial Draft Project Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .308
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .310
Chapter 11 DMAIC Model: M Is for Measure . . . . . . . . . . . . . . . . . . . . . . . . .311

Purpose of the Measure Phase. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .311
The Steps of the Measure Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .312
Operational Definitions of the CTQ(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .312
Data Collection Plan for CTQ(s). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .312
Validate Measurement System for CTQ(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .313
Collect and Analyze Baseline Data for the CTQ(s). . . . . . . . . . . . . . . . . . . . . . . .317
Estimate Process Capability for CTQ(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .321
Keys to Success and Pitfalls to Avoid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .324
Case Study: Reducing Patient No Shows in an Outpatient Psychiatric
ClinicMeasure Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .324
Operational Definition of the CTQ(s) and Data Collection
Plan for the CTQ(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .325
Validate Measurement System for CTQ(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .326
Collect and Analyze Baseline Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .328
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .331
Chapter 12 DMAIC Model: A Is for Analyze. . . . . . . . . . . . . . . . . . . . . . . . . .333

Purpose of the Analyze Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .333
The Steps of the Analyze Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .334
Detailed Flowchart of Current State Process . . . . . . . . . . . . . . . . . . . . . . . . . . . .334
Identification of Potential Xs for CTQ(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .335
Contents xiii
Failure Modes and Effects Analysis (FMEA) to Reduce the Number of Xs . . .338
Operational Definitions for the Xs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .338
Data Collection Plan for Xs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .339
Validate Measurement System for X(s). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .340
Test of Theories to Determine Critical Xs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .340
Develop Hypotheses/Takeaways about the Relationships between the
Critical Xs and CTQ(s). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .342
Go-No Go Decision Point . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .342
Case Study: Reducing Patient No Shows in an Outpatient Psychiatric Clinic
Analyze Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .344
Detailed Flowchart of Current State Process . . . . . . . . . . . . . . . . . . . . . . . . . . . .344
Identification of Xs for CTQ(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .344
Failure Modes and Effects Analysis (FMEA) to Reduce the Number of Xs . . .346
Operational Definitions of the Xs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .346
Data Collection Plan for Xs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .348
Validate Measurement System for Xs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .348
Test of Theories to Determine Critical Xs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .348
Develop Hypotheses/Takeaways about the Relationships between the
Critical Xs and CTQ(s). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .354
Tollgate ReviewGo-No Go Decision Point . . . . . . . . . . . . . . . . . . . . . . . . . . . .354
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .356
Chapter 13 DMAIC Model: I Is for Improve. . . . . . . . . . . . . . . . . . . . . . . . . .357

Purpose of the Improve Phase. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .357
The Steps of the Improve Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .358
Generate Alternative Methods for Performing Each Step in the Process . . . . .358
Select the Best Alternative Method (Change Concepts) for All of the CTQs . .360
Create a Flowchart for the Future State Process. . . . . . . . . . . . . . . . . . . . . . . . . .361
Identify and Mitigate the Risk Elements for New Process . . . . . . . . . . . . . . . . .362
Run a Pilot Test of the New Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .362
Collect and Analyze the Pilot Test Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .362
Go-No Go Decision Point . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .364
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Improve Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .366
Generate Alternative Methods for Performing Each Step in the Process . . . . .366
Select the Best Alternative Method (Change Concept) for All the CTQs . . . . .367
Create a Flowchart of the New Improved Process . . . . . . . . . . . . . . . . . . . . . . . .368
Identify and Mitigate the Risk Elements for the New Process . . . . . . . . . . . . . .369
Run a Pilot Test of the New Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .369
Collect and Analyze the Pilot Test Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .372
Tollgate ReviewGo-No Go Decision Point . . . . . . . . . . . . . . . . . . . . . . . . . . . .373
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .374
Chapter 14 DMAIC Model: C Is for Control . . . . . . . . . . . . . . . . . . . . . . . . . .375

Purpose of the Control Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .375
The Steps of the Control Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .376
Reduce the Effects of Collateral Damage to Related Processes . . . . . . . . . . . . .376
Standardize Improvements (International Standards Organization [ISO]). . .379
Develop a Control Plan for the Process Owner . . . . . . . . . . . . . . . . . . . . . . . . . .380
Identify and Document the Benefits and Costs of the Project . . . . . . . . . . . . . .383
Input the Project into the Six Sigma Database . . . . . . . . . . . . . . . . . . . . . . . . . . .383
Diffuse the Improvements throughout the Organization . . . . . . . . . . . . . . . . . .383
Conduct a Tollgate Review of the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .384
Control Phase. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .386
Reduce the Effects of Collateral Damage to Related Processes . . . . . . . . . . . . .386
Standardize Improvements (International Standards Organization [ISO]). . .386
Develop a Control Plan for the Process Owner . . . . . . . . . . . . . . . . . . . . . . . . . .387
Financial Impact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .387
Input the Project into the Six Sigma Database . . . . . . . . . . . . . . . . . . . . . . . . . . .390
Diffuse the Improvements throughout the Organization . . . . . . . . . . . . . . . . . .390
Champion, Process Owner, and Black Belt Review the Project . . . . . . . . . . . . .390
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .392
Contents xv
Chapter 15 Maintaining Improvements in Processes, Products-Services,
Policies, and Management Style. . . . . . . . . . . . . . . . . . . . . . . . . . . .393
Improving Processes, Products-Services, and Processes: Revisited. . . . . . . . . . . . . .393
Case Study 1: Failure in the Act Phase of the PDSA Cycle in Manufacturing. . . . . .393
Case Study 2: Failure in the Act Phase of the PDSA Cycle in
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .394
A Method for Promoting Improvement and Maintainability. . . . . . . . . . . . . . . . . . .396
Dashboards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .396
Presidential Review of Maintainability Indicators. . . . . . . . . . . . . . . . . . . . . . . .397
The Funnel Experiment and Successful Management Style . . . . . . . . . . . . . . . . . . . .398
Rule 1 Revisited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .398
Rule 4 Revisited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .398
Succession Planning for the Maintainability of Management Style. . . . . . . . . . . . . .399
Succession Planning by Incumbent Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .399
Succession Planning by Creating Talent Pools Model. . . . . . . . . . . . . . . . . . . . .400
Succession Planning Using the Top-Down/Bottom-Up Model . . . . . . . . . . . . .400
Process Oriented Top-Down/Bottom-Up Succession Planning Model . . . . . .401
Egotism of Top Management as a Threat to the Maintainability of
Management Style. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .403
Six Indicators of Egotism That Threaten the Maintainability of
Management Style . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .403
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .404
The Board of Directors Fails to Understand the Need for Maintainability in the
Organizations Culture and Management Style . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .404
Definition of Culture/Management Style . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .404
Components of Board Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .405
Shared Mission and Shared Values/Beliefs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .405
Allocation of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .405
Reducing Variability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .406
Engagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .406
Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .406
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .407
xvi Contents
Section IV The Culture Required for Six Sigma
Management
Chapter 16 W. Edwards Demings Theory of Management: A Model for
Cultural Transformation of an Organization . . . . . . . . . . . . . . . .409
Background on W. Edwards Deming. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .409
Demings System of Profound Knowledge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .409
Purpose of Demings Theory of Management . . . . . . . . . . . . . . . . . . . . . . . . . . .410
Paradigms of Demings Theory of Management . . . . . . . . . . . . . . . . . . . . . . . . .410
Components of Demings Theory of Management . . . . . . . . . . . . . . . . . . . . . . .411
Demings 14 Points for Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .413
Demings 14 Points and the Reduction of Variation . . . . . . . . . . . . . . . . . . . . . . . . . .430
Transformation or Paradigm Shift . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .433
The Prevailing Paradigm of Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .433
The New Paradigm of Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .434
Transformation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .434
Quality in Service, Government, and Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .434
Quotes from Deming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .434
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .435
References and Additional Readings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .436
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .439
Section V Six Sigma Certification

Chapter 17 Six Sigma Champion Certification . . . . . . . . . . . . . . . . . . . . . . Online
Chapter 18 Six Sigma Green Belt Certification . . . . . . . . . . . . . . . . . . . . . . Online
ACCESS TO DATA FILES AND CHAPTERS 17 AND 18

Go to www.ftpress.com/sixsigma and click the Downloads tab to access Minitab practice
data files and Chapters 17 and 18.
Contents xvii
Acknowledgments
First, we thank the late W. Edwards Deming for his philosophy and guidance. Second,
we thank everyone at the University of Miami and the University of Miami Miller School
of Medicine for collaborating with us in all of our process improvement efforts. We have
learned something from every single one of you! Third, we thank all the people who provided
life lessons to us to make this book a reality. Finally, we thank Jeanne Glasser Levine for giv-
ing us the opportunity to write this second edition. Thank you one and all.
xviii Acknowledgments
About the Authors
Dr. Howard S. Gitlow is Executive Director of the Institute for the Study of Quality, Direc-
tor of the Master of Science degree in Management Science, and a Professor of Management
Science, School of Business Administration, University of Miami, Coral Gables, Florida. He
was a visiting professor at the Stern School of Business at New York University from 2007
through 2013, and a visiting professor at the Science University of Tokyo in 1990 where he
studied with Dr. Noriaki Kano. He received his PhD in Statistics (1974), MBA (1972), and
BS in Statistics (1969) from New York University. His areas of specialization are Six Sigma
Management, Dr. Demings theory of management, Japanese Total Quality Control, and
statistical quality control.
Dr. Gitlow is a Six Sigma Master Black Belt, a fellow of the American Society for Quality, and
a member of the American Statistical Association. He has consulted on quality, productiv-
ity, and related matters with many organizations, including several Fortune 500 companies.
Dr. Gitlow has authored or coauthored 16 books, including Americas Research Universities:
The Challenges Ahead, University Press of America (2011); A Guide to Lean Six Sigma, CRC
Press (2009); Design for Six Sigma for Green Belts and Champions, Prentice-Hall, (2006); Six
Sigma for Green Belts and Champions, Prentice-Hall, (2004); Quality Management: Tools
and Methods for Improvement, 3rd edition, Richard. D. Irwin (2004); Quality Management
Systems, CRC Press (2000), Total Quality Management in Action, Prentice-Hall, (1994); The
Deming Guide to Quality and Competitive Position, Prentice-Hall (1987); Planning for Qual-
ity, Productivity, and Competitive Position, Dow Jones-Irwin (1990); and Stat City: Under-
standing Statistics Through Realistic Applications, 2nd edition, Richard D. Irwin (1987). He
has published more than 60 academic articles in the areas of quality, statistics, management,
and marketing.
While at the University of Miami, Dr. Gitlow has received awards for outstanding teaching,
outstanding writing, and outstanding published research articles.
Richard J. Melnyck is Assistant Vice President for Medical Affairs and Executive Director
of Process Improvement at the University of Miami Miller School of Medicine and Health
System. He is a Six Sigma Master Black Belt, the University of Miami faculty advisor for the
American Society for Quality, the University of Miami Miller School of Medicine faculty
advisor for the Institute for Healthcare Improvement, and a member of the Beta Gamma
Sigma International Honor Society. Melnyck has taught process improvement in both the
School of Business and the Miller School of Medicine at the University of Miami. He has con-
sulted on quality, productivity, and related matters with many organizations. He received his
MS in Management Science (2008), MBA (2002), and MS in Computer Information Systems
(2002) from the University of Miami.
About the Authors xix

David M. Levine is Professor Emeritus of Statistics and Computer Information Systems at
Baruch College (City University of New York). He received B.B.A. and M.B.A. degrees in
Statistics from City College of New York and a PhD from New York University in industrial
engineering and operations research. He is nationally recognized as a leading innovator
in statistics education and is the coauthor of 14 books, including such bestselling statistics
textbooks as Statistics for Managers Using Microsoft Excel, Basic Business Statistics: Concepts
and Applications, Business Statistics: A First Course, and Applied Statistics for Engineers and
Scientists Using Microsoft Excel and Minitab. He also is the coauthor of Even You Can Learn
Statistics & Analytics: A Guide for Everyone Who Has Ever Been Afraid of Statistics, currently
in its third edition, and Design for Six Sigma for Green Belts and Champions, and the author of
Statistics for Six Sigma Green Belts, all published by Pearson, and Quality Management, third
edition, McGraw-Hill/Irwin. He is also the author of Video Review of Statistics and Video
Review of Probability, both published by Video Aided Instruction, and the statistics module
of the MBA primer published by Cengage Learning. He has published articles in various
journals, including Psychometrika, The American Statistician, Communications in Statistics,
Decision Sciences Journal of Innovative Education, Multivariate Behavioral Research, Journal
of Systems Management, Quality Progress, and The American Anthropologist, and he has
given numerous talks at the Decision Sciences Institute (DSI), American Statistical Associa-
tion (ASA), and Making Statistics More Effective in Schools and Business (MSMESB) con-
ferences. Levine has also received several awards for outstanding teaching and curriculum
development from Baruch College.
xx About the Authors

1
You Dont Have to Suffer
from the Sunday Night Blues!
What Is the Objective of This Chapter?

We all know someone who dreads Sunday night because he or she isnt looking forward
to going to work the next day. In fact, many of us know that person very well because that
person is us!
Many employees are highly respected and well paid, and you may believe that they are happy
with their jobs, but do not be fooled by their smiles. Many of them dislike their jobs. Many
people are burned out at work. So, if you are an employee just trying to do your job and
you think your job is boring, draining, and depressing, just thinkyou may have to do it for
the rest of your work life! Hows that for something to look forward to?
Well, we are here to tell you that you dont have to suffer from the Sunday night blues!
Before we tell you what you can do to make that happen we need to first tell you a little bit
about intrinsic motivation. Intrinsic motivation comes from the sheer joy or pleasure of
performing an act, in this case such as improving a process or making your job better. It
releases human energy that can be focused into improvement and innovation of a system. As
amazing as it may seem, work does not have to be a drain on your energy. If you can release
the intrinsic motivation that lies within all of us it can actually fill you with energy so you
can enjoy what you do and look forward to doing it, day after day and year after year. Many
artists, athletes, musicians, and professors enjoy their work over the course of their lives. You
can enjoy your work also, or at least you can enjoy it much more than you currently do. It just
requires a redefinition of work and a management team that promotes the redefined view of
work to release the intrinsic motivation within each of us.
In todays world, many of us are asked to self-manage to a great extent, meaning we are given
the autonomy and opportunity to direct our work to accomplish important organizational
objectives. However, many of us do not take advantage of that opportunity. Why? The rea-
son is that we do not have the tools to release that intrinsic motivation to make our jobs, our
organizations, and most importantly our lives better. Now we do!
This book not only explains how it is possible for you to make both your work life and your
personal life better using process improvement and Six Sigma, but it gives you the tools and
methods to make it happen.
1
Sarahs Story
Most people go into work every day and are confronted with a long list of crises that require
immediate attention. Consider the story of Sarah who is an administrative assistant in a
department in a large, urban, private university. Please note that Sarah has not read this
bookyet. So she comes to work every day only to be greeted by a long to-do list of mini
crises that are boring and repetitive. Sound familiar?
The mini crises include answering the same old questions from faculty and students, week
after week after week:
What room is my class in?
Does the computer in room 312 work?
What are my professors office hours?
Are the copies I need for class (and requested only 5 minutes ago) ready? Blah,
blah, blah.
These crises prevent Sarah from doing her real work, which keeps piling up. It is frustrating
and depressing. If you ask Sarah what her job is, she will say: I do whatever has to be done
to get through the day without a major disaster.
No one is telling Sarah she cannot improve her processes so that she doesnt have to answer
the same questions over and over again. In fact, her bosses would rather her not focus on
answering the same old questions and instead prefer her to work on projects that actually
add value. The problem is not that she doesnt want to improve her processes; the problem
is that she doesnt know how.
Then one day somehow the stars align and Sarah finds a copy of our book on her desk, so she
reads it. She starts to apply some of the principles of the book to her job and to her life, and
guess what? Things begin to change for the better.
For example, instead of having people call her to see what room their class is in she employs
something that she learns in the book called change concepts, which are approaches to change
that have been found to be useful in developing solutions that lead to improvements in pro-
cesses. In this case, she uses a change concept related to automation and sends out a daily
autogenerated email to all students and staff to let them know what room their classes are
located in. Utilizing the change concept eliminates the annoying calls she used to receive to
see what room classes are in.
Can you identify with Sarah? Do you want to learn tools and methods that will help you
transform your job, your organization, and your life? The upcoming chapters take you on
that journey, the journey of process improvement.
Before we go through the structure of the book, it is important for you to understand some
key fundamental principles. These are principles that you need to understand as a prerequi-
site to reading this book and are principles you need to keep referring back to if you want to
2 A Guide to Six Sigma and Process Improvement for Practitioners and Students
transform your job (to the extent management allows you to do it), your organization (if it
is under your control), and your life through process improvement.
A young violinist in New York City asks a stranger on the street how to get to Carnegie
Hall; the strangers reply is, Practice, practice, practice. The same thing applies to process
improvement. The only way you get better at it is through practice, practice, practice, and it
starts with the nine principles outlined in this chapter.
Nine Principles of Process Improvement to Get the Most

Out of This Book
Process improvement and Six Sigma embrace many principles, the most important of which
in our opinion are discussed in this section. When understood, these principles may cause a
transformation in how you view life in general and work in particular (Gitlow, 2001; Gitlow,
2009).
The principles are as follows:
Principle 1Life is a process (a process orientation).
Principle 2All processes exhibit variation.
Principle 3Two causes of variation exist in all processes.
Principle 4Life in stable and unstable processes is different.
Principle 5Continuous improvement is always economical, absent capital
investment.
Principle 6Many processes exhibit waste.
Principle 7Effective communication requires operational definitions.
Principle 8Expansion of knowledge requires theory.
Principle 9Planning requires stability. Plans are built on assumptions.
These principles are outlined in the following sections and appear numerous times through-
out the book. Illustrated from the point of view of everyday life, it is your challenge to apply
them to yourself, your job, and your organization.
Principle 1: Life is a process. A process is a collection of interacting components that trans-
form inputs into outputs toward a common aim called a mission statement. Processes exist
in all facets of life in general, and organizations in particular, and an understanding of them
is crucial.
The transformation accomplished by a process is illustrated in Figure 1.1. It involves the
addition or creation of time, place, or form value. An output of a process has time value if
it is available when needed by a user. For example, you have food when you are hungry, or
equipment and tools available when you need them. An output has place value if it is avail-
able where needed by a user. For example, gas is in your tank (not in an oil field), or wood
Chapter 1 You Dont Have to Suffer from the Sunday Night Blues! 3
chips are in a paper mill. An output has form value if it is available in the form needed by a
user. For example, bread is sliced so it can fit in a toaster, or paper has three holes so it can
be placed in a binder.
Inputs Process Outputs

Manpower/services Transformation Manpower/services
Equipment of inputs into
Equipment
output by adding
Materials/goods Materials/goods
time, form, or
Methods place value Methods
Environment
Environment
Figure 1.1 Basic process
An example of a personal process is Ralphs relationship with women he dates process.

Ralph is 55 years old. He is healthy, financially stable, humorous, good looking (at least he
thinks so!), and pleasant. At age 45 he was not happy because he had never had a long-term
relationship with a woman. He wanted to be married and have children. Ralph realized that
he had been looking for a wife for 20 years, with a predictable pattern of four to six month
relationshipsthat is, two relationships per year on average; see Figure 1.2. That meant he
had about 40 relationships over the 20 years.
Use an edating service, Start dating a woman. Get depressed over

go to social gatherings, Continue dating one breakup. Obsess about
or get fixed up on a blind special woman. Break up reason for breakup.
date. with the special woman.
Feedback Loop
Figure 1.2 Ralphs relationship with women process
Ralph continued living the process shown in Figure 1.2 for more than 20 years. It depressed
and frustrated him, but he did not know what to do about it. Read on to the next principles
to find out more about Ralphs situation.
Principle 2: All processes exhibit variation. Variation exists between people, outputs, ser-
vices, products, and processes. It is natural and should be expected, but it must be reduced.
The type of variation being discussed here is the unit-to-unit variation in the outputs of
a process (products or services) that cause problems down the production or service line
and for customers. It is not diversity, for example, racial, ethnic, or religious, to name a few
sources of diversity. Diversity makes an organization stronger due to the multiple points of
view it brings to the decision making process.
Lets go back to our discussion of unit-to-unit variation in the outputs of a process. The criti-
cal question to be addressed is: What can be learned from the unit-to-unit variation in the
outputs of a process (products or services) to reduce it? Less variability in outputs creates a
situation in which it is easier to plan, forecast, and budget resources. This makes everyones
life easier.
Lets get back to Ralphs love life or lack thereof. Ralph remembered the reasons for about 30
of his 40 breakups with women. He made a list with the reason for each one. Then he drew a
line graph of the number of breakups by year; see Figure 1.3.
Time Series Plot of Number of Breakups
3.0
2.5
Number of Breakups
2.0
1.5
1.0
0.5
0.0 0
1981 1983 1985 1987 1989 1991 1993 1995 1997 1999
Year
Figure 1.3 Number of breakups by year
As you can see, the actual number of breakups varies from year to year. Ralphs ideal number
of breakups per year is zero; this assumes he is happy and in a long-term relationship with
a woman whom he has children with. The difference between the actual number of break-
ups and the ideal number of breakups is unwanted variation. Process improvement and
Six Sigma management help you understand the causes of unwanted waste and variation,
thereby giving you the insight you need to bring the actual output of a process and the ideal
output of a process closer to each other.
Another example: Your weight varies from day to day. Your ideal daily weight would be
some medically determined optimum level; see the black dots on Figure 1.4. Your actual
daily weights may be something entirely different. You may have an unacceptably high aver-
age weight with great fluctuation around the average; see the fluctuating squares on Figure
1.4. Unwanted variation is the difference between your ideal weight and your actual weights.
Process improvement and Six Sigma management help you understand the causes of this
variation, thereby giving you the insight you need to bring your actual weight closer to your
ideal weight.
Actual vs. Ideal Weights by Day

Variable
200 Ideal
Actual
190
Data
180
170
160
2 4 6 8 10 12 14 16 18 20 22 24
Index
Figure 1.4 Actual versus ideal weights by day
Principle 3: Two causes of variation exist in all processes; they are special causes and com-
mon causes of variation. Special causes of variation are due to assignable causes external
to the process. Common causes of variation are due to the process itselfthat is, variation
caused by the structure of the process. Examples of common causes of variation could be
stress, values and beliefs, or the level of communication between the members of a family.
Usually, most of the variation in a process is due to common causes. A process that exhibits
special and common causes of variation is unstable; its output is not predictable in the future.
A process that exhibits only common causes of variation is stable (although possibly unac-
ceptable); its output is predictable in the near future.
Lets visit Ralph again. Ralph learned about common and special causes of variation and
began to use some basic statistical thinking and tools to determine whether his pattern of
breakups with women was a predictable system of common causes of variation. Ralph con-
structed a control chart (see Figure 1.5) of the number of breakups with women by year. After
thinking about himself from a statistical point of view using a control chart, he realized his
relationships with women were not unique events (special causes); rather, they were a com-
mon cause process (his relationship with women process).
C Chart of Number of Breakups
UCL=5.174
5
4
Sample Count
2
_
C=1.5
1
0 LCL=0
1981 1983 1985 1987 1989 1991 1993 1995 1997 1999
Year
Figure 1.5 Number of breakups with women by year
Control charts are statistical tools used to distinguish special from common causes of varia-
tion. All control charts have a common structure. As Figure 1.5 shows, they have a center
line, representing the process average, and upper and lower control limits that provide infor-
mation on the process variation. Control charts are usually constructed by drawing samples
from a process and taking measurements of a process characteristic, usually over time. Each
set of measurements is called a subgroup, for example, a day or month. In general, the center
line of a control chart is taken to be the estimated mean of the process; the upper control limit
(UCL) is a statistical signal that indicates any point(s) above it are likely due to special causes
of variation, and the lower control limit (LCL) is a statistical signal that indicates any point(s)
below it are likely due to special causes of variation. Additional signals of special causes of
variation are not discussed in this chapter, but are discussed later in the book.
Back to Ralphs love life; Figure 1.5 shows that the number of breakups by year are all between
the UCL = 5.174 and the LCL = 0.0. So, Ralphs breakup process with women only exhib-
its common causes of variation; it is a stable and predictable process, at least into the near
future. This tells Ralph that he should analyze all 30 data points for all 20 years as being part
of his relationship with women process; he should not view any year or any relationship
as special.
Ralph was surprised to see that the reasons he listed for the 30 breakups collapsed down to
five basic categories, with one category containing 24 (80%) of the relationships. The catego-
ries (including repetitions) are grouped into the frequency distribution shown in Table 1.1.
Table 1.1 Frequency Distribution of Reasons for Breakups with Women for 20 Years
Reason Frequency Percentage
Failure to commit 24 80.00
Physical 03 10.00
Sexual 01 3.33
Common interests 01 3.33
Other relationships 01 3.33
Total 30 100.00
Ralph realized that there were not 30 unique reasons (special causes) that moved him to
break up with women. He saw that there were only five basic reasons (common causes of
variation in his process) that contributed to his breaking up with women, and that failure
to commit is by far the most repetitive common cause category.
Principle 4: Life in stable and unstable processes is different. This is a big principle. If a
process is stable, understanding this principle allows you to realize that most of the crises that
bombard you on a daily basis are nothing more than the random noise (common causes of
variation) in your life. Reacting to a crisis like it is a special cause of variation (when it is in
fact a common cause of variation) will double or explode the variability of the process that
generated it. All common causes of variation (formerly viewed as crises) should be catego-
rized to identify 80-20 rule categories, which can be eliminated from the process. Eliminat-
ing an 80-20 rule category eliminates all, or most, future repetition of the common causes
(repetitive crises) of variation generated by the problematic component of the process.
Lets return to the example of Ralph. Ralph realized that the 30 women were not individu-
ally to blame (special causes) for the unsuccessful relationships, but rather, he was to blame
because he had not tended to his emotional well-being (common causes in his stable emo-
tional process); refer to Figure 1.5. Ralph realized he was the process owner of his emotional
process. Armed with this insight, he entered therapy and worked on resolving the biggest
common cause category (80-20 rule category) for his breaking up with women, failure to
commit.
The root cause issue for this category was that Ralph was not getting his needs met by the
women. This translated into the realization that his expectations were too high because he
had a needy personality. In therapy he resolved the issues in his life that caused him to be
needy and thereby made a fundamental change to himself (common causes in his emotional
process). He is now a happily married man with two lovely children. Ralph studied and
resolved the common causes of variation between his ideal and real self, and moved himself
to his ideal; see the right side of Figure 1.6. He did this by recognizing that he was the process
owner of his emotional process and that his emotional process was stable, and required a
common cause type fix, not a special cause type fix. Ralph is the manager of his life; only he
can change how he interacts with the women he forms relationships with.
C Chart of Number of Breakups with Women by Before and After

Before After
4
Sample Count
1982 1985 1988 1991 1994 1997 2000 2003 2006

Year
Figure 1.6 Number of breakups with women before and after therapy
Principle 5: Continuous improvement is always economical, absent capital investment.

Continuous improvement is possible through the rigorous and relentless reduction of com-
mon causes of variation and waste around a desired level of performance in a stable process.
It is always economical to reduce variation around a desired level of performance, without
capital investment, even when a process is stable and operating within specification limits.
For example, elementary school policy states that students are to be dropped off at 7:30 a.m.
If a child arrives before 7:25 a.m., the teacher is not present and it is dangerous because it is
an unsupervised environment. If a child arrives between 7:25 a.m. and 7:35 a.m., the child
is on time. If a child arrives after 7:35 a.m., the entire class is disrupted. Consequently, par-
ents think that if their child arrives anytime between 7:25 a.m. and 7:35 a.m. it is acceptable
(within specification limits). However, principle 5 promotes the belief that for every minute
a child is earlier or later than 7:30 a.m., even between 7:25 am and 7:35 am, a loss is incurred
by the class. The further from 7:30 a.m. a child arrives to school, the greater the loss. Please
note that the loss may not be symmetric around 7:30 a.m. Under this view, it is each parents
job to continuously reduce the variation in the childs arrival time to school. This minimizes
the total loss to all stakeholders of the childs classroom experience (the child, classmates,
teacher, and so on). Table 1.2 shows the loss incurred by the class of children in respect to
accidents from early arrivals of children and the disruptions by late arrivals of children for
a one year period.
Table 1.2 Loss from Minutes Early or Late

Arrival Times (a.m.) # Minutes Early or Late Loss to the Classroom
7:26 4 2 accidents
7:27 3 2 accidents
7:28 2 1 accident
7:29 1 1 accident
7:30 0 0 accidents
7:31 1 1 minor disruption
7:33 3 1 medium disruption
7:34 4 1 major disruption
Total 6 accidents
2 minor disruptions
1 medium disruption
1 major disruption
If parents can reduce the variation in their arrival time processes from the distribution in
Table 1.2 to the distribution in Table 1.3, they can reduce the loss from early or late arrival
to school. Reduction in the arrival time process requires a fundamental change to parents
arrival time behavior, for example, laying out their childs clothes the night before to elimi-
nate time. As you can see, Table 1.2 shows 6 accidents, 2 minor disruptions, 1 medium
disruption, and 1 major disruption, while Table 1.3 shows 4 accidents, 2 minor disruptions,
and 1 medium disruption. This clearly demonstrates the benefit of continuous reduction of
variation, even if all units conform to specifications.
Table 1.3 Improved Loss from Minutes Early or Late

7:26 4 0 accidents
7:27 3 2 accidents
7:28 2 1 accident
7:29 1 1 accident
7:30 0 0 accidents
7:33 3 1 medium disruption
7:34 4 0 disruptions
Total 4 accidents
2 minor disruptions
1 medium disruption
Principle 6: Many processes exhibit waste. Processes contain both value added activities
and non-value added activities. Non-value added activities in a process include any wasteful
step that
Customers are not willing to pay for
Does not change the product or service
Contains errors, defects, or omissions
Requires preparation or setup
Involves control or inspection
Involves overproduction, special processing, and inventory
Involves waiting and delays
Value added activities include steps that customers are willing to pay for because they posi-
tively change the product or service in the view of the customer. Process improvement and
Six Sigma management promote reducing waste through the elimination of non-value added
activities (streamlining operations), eliminating work in process and inventory, and increas-
ing productive flexibility and speed of employees and equipment.
Recall Ralph and his love life dilemma. If you consider Ralphs failure to commit as part of
his relationship with women process, you can clearly see that it is a non-value added activity.
This non-value added activity involves some wasteful elements. First, the women Ralph dates
do not want to spend their valuable time dating a man who cannot commit to a long-term
relationship. Second, the women ultimately feel tricked or lied to because Ralph failed to dis-
cuss his commitment issues early in the relationship. Third, the women resent the emotional
baggage (unwanted inventory) that Ralph brings to the prospective relationship. Clearly,
Ralph needed to eliminate these forms of waste from his love life.
Principle 7: Effective communication requires operational definitions. An operational
definition promotes effective communication between people by putting communicable
meaning into a word or term. Problems can arise from the lack of an operational definition
such as endless bickering and ill will. A definition is operational if all relevant users of the
definition agree on the definition. It is useful to illustrate the confusion that can be caused
by the absence of operational definitions. The label on a shirt reads 75% cotton. What
does this mean? Three quarters cotton on average over this shirt, or three quarters cotton
over a months production? What is three quarters cotton? Three quarters by weight? Three
quarters at what humidity? Three quarters by what method of chemical analysis? How many
analyses? Does 75% cotton mean that there must be some cotton in any random cross-section
the size of a silver dollar? If so, how many cuts should be tested? How do you select them?
What criterion must the average satisfy? And how much variation between cuts is permis-
sible? Obviously, the meaning of 75% cotton must be stated in operational terms; otherwise
confusion results.
An operational definition consists of
A criterion to be applied to an object or a group
A test of the object or group in respect to the criterion
A decision as to whether the object or group did or did not meet the criterion
The three components of an operational definition are best understood through an example.
Susan lends Mary her coat for a vacation. Susan requests that it be returned clean. Mary
returns it dirty. Is there a problem? Yes! What is it? Susan and Mary failed to operationally
define clean. They have different definitions of clean. Failing to operationally define terms
can lead to problems. A possible operational definition of clean is that Mary will get the coat
dry-cleaned before returning it to Susan. This is an acceptable definition if both parties agree.
This operational definition is shown here:
Criteria: The coat is dry-cleaned and returned to Susan.
Test: Susan determines if the coat was dry-cleaned.
Decision: If the coat was dry-cleaned, Susan accepts the coat. If the coat was not dry-
cleaned, Susan does not accept the coat.
From past experience, Susan knows that coats get stained on vacation and that dry cleaning
may not be able to remove a stain. Consequently, the preceding operational definition is
not acceptable to Susan. Mary thinks dry cleaning is sufficient to clean a coat and feels the
preceding operational definition is acceptable. Since Susan and Mary cannot agree on the
meaning of clean, Susan should not lend Mary the coat.
An operational definition of clean that is acceptable to Susan follows:
Criteria: The coat is returned. The dry-cleaned coat is clean to Susans satisfaction or
Mary must replace the coat, no questions asked.
Test: Susan examines the dry-cleaned coat.
Decision: Susan states the coat is clean and accepts the coat. Or, Susan states the coat
is not clean and Mary must replace the coat, no questions asked.
Mary doesnt find this definition of clean acceptable. The moral is: Dont do business with
people without operationally defining critical quality characteristics.
Operational definitions are not trivial. Statistical methods become useless tools in the absence
of operational definitions because data does not mean the same thing to all its users.
Principle 8: Expansion of knowledge requires theory. Knowledge is expanded through revi-
sion and extension of theory based on systematic comparisons of predictions with observa-
tions. If predictions and observations agree, the theory gains credibility. If predictions and
observations disagree, the variations (special and/or common) between the two are studied,
and the theory is modified or abandoned. Expansion of knowledge (learning) continues
forever.
Lets visit Ralph again. He had a theory that each breakup had its own and unique special
cause. He thought deeply about each breakup and made changes to his behavior based on his
conclusions. Over time, Ralph saw no improvement in his relationships with women; that
is, the difference between the actual number of breakups by year was not getting any closer
to zero; that is a long-term relationship. Coincidently, he studied process improvement and
Six Sigma management and learned that there are two types of variation in a process, special
and common causes. He used a control chart to study the number of breakups with women
by year; refer to the left side of Figure 1.6. Ralph developed a new theory for his relationship
with women process based on his process improvement and Six Sigma studies. The new
theory recognized that all Ralphs breakups were due to common causes of variation. He
categorized them, went into therapy to deal with the biggest common cause problem, and
subsequently, the actual number of breakups with women by year equaled the ideal number
of breakups with women by year; refer to the right side of Figure 1.6. Ralph tested his new
theory by comparing actual and ideal numbers, and found his new theory to be helpful in
improving his relationship with women process.
Principle 9: Planning requires stability. Plans are built on assumptions. Assumptions are
predictions concerning the future conditions, behavior, and performance of people, proce-
dures, equipment, or materials of the processes required by the plan. The predictions have
a higher likelihood of being realized if the processes are stable with low degrees of variation.
If you can stabilize and reduce the variation in the processes involved with the plan, you
can affect the assumptions required for the plan. Hence, you can increase the likelihood of
a successful plan.
Example: Jan was turning 40 years old. Her husband wanted to make her birthday special.
He recalled that when Jan was a little girl she dreamed of being a princess. So, he looked for
a castle that resembled the castle in her childhood dreams. After much searching, he found a
castle in the middle of France that met all the required specifications. It had a moat, parapets,
and six bedrooms; perfect. Next, he invited Jans closest friends, three couples and two single
friends, filling all six bedrooms. After much discussion with the people involved, he settled
on a particular three day period in July and signed a contract with the count and countess
who owned the castle. Finally, he had a plan and he was happy.
As the date for the party drew near, he realized that his plan was based on two assumptions.
The first assumption was that the castle would be available. This was not a problem because
he had a contract. The second assumption was that all the guests would be able to go to the
party. Essentially, each guests life is a process. The question is: Is each guests life process
stable with a low enough degree of variation to be able to predict attendance at the party. This
turned out to be a substantial problem. Due to various situations, several of the guests were
not able to attend the party. One couple began to have severe marital problems. One member
of another couple lost his job. Jans husband should have realized that the likelihood of his
second assumption being realized was problematic and subject to chance; that is, he would
be lucky if all the guests were okay at the time of the party. He found out too late that the
second assumption was not met at the time of the party. If he had he realized this, he could
have saved money and heartache by renting rooms that could be cancelled in a small castle-
type hotel. As a postscript, the party was a great success!
Structure of the Book

We structured the book strategically into five main sections, each building upon each other
and each expanding your knowledge so that eventually you can complete a process improve-
ment project on your own.
We use the analogy of building a house in how we structured this book.
Section IBuilding a Foundation of Process Improvement Fundamentals
Chapter 1You Dont Have to Suffer from the Sunday Night Blues!
Chapter 2Process and Quality Fundamentals
Chapter 3Defining and Documenting a Process
One of the first steps to building a house is to lay down a foundation. The first section cre-
ates your foundation in process improvement by taking you through the process and quality
fundamentals you need as you build up your knowledge base. It goes into further detail on
many of our nine principles for process improvement, principles critical to your understand-
ing of this material.
Section IICreating Your Toolbox for Process Improvement
Chapter 4Understanding Data: Tools and Methods
Chapter 5Understanding Variation: Tools and Methods
Chapter 6Non-Quantitative Techniques: Tools and Methods
Chapter 7Overview of Process Improvement Methodologies
Chapter 8Project Identification and Prioritization: Building a Project Pipeline
You cannot build a house without tools and without understanding how and when to use
them, right? The second section creates your toolbox for process improvement by not only
teaching you the tools and methods you need to improve your processes but teaching you
when and how to use them.
Section IIIPutting It All TogetherSix Sigma Projects
Chapter 9Overview of Six Sigma Management
Chapter 10DMAIC Model: D Is for Define
Chapter 11DMAIC Model: M Is for Measure
Chapter 12DMAIC Model: A Is for Analyze
Chapter 13DMAIC Model: I Is for Improve
Chapter 14DMAIC Model: C Is for Control
Chapter 15Maintaining Improvements in Processes, Products-Services, Policies,
and Management Style
When you build a house you need a framework or guide to follow to make sure you build the
house correctly; its called a blueprint! Once that beautiful house is built you need to maintain
it so it stays beautiful, right?
The third section is analogous to the blueprint of a house, and it is where we put everything
you have learned together to complete a project. We use a specific set of stepskind of like
a blueprintto keep us focused and make sure we do the project correctly. Those steps
are called the Six Sigma management style. Like the maintenance of a new house, once we
improve the process, the last thing we want is for the process to backslide to its former prob-
lematic state. We show you how to maintain and sustain those improvements.
Section IVThe Culture Required for Six Sigma Management
Chapter 16W. Edwards Demings Theory of Management: A Model for Cultural
Transformation of an Organization
The fourth section of this book discusses an appropriate culture for a successful Six Sigma
management style. We can use the house building analogy because a house has to be built
on a piece of property that can support all its engineering, social, psychological, and so on
needs and wants. Without a proper piece of property, the house could fall into a sinkhole.
Section VSix Sigma Certification
Chapter 17Six Sigma Champion Certification (online-only chapter)
Chapter 18Six Sigma Green Belt Certification (online-only chapter)
The fifth section discusses how you can become Six Sigma certified at the Champion and
Green Belt levels of certification. Certification is like getting your house a final inspection and
receiving a Certificate of Occupancy so you can move in. (This section can be found online
at www.ftpress.com/sixsigma.)
We hope you enjoy this book. Feel free to contact the authors concerning any mistakes you
have found, or any ideas for improvement. Thank you for reading our book. We hope you
find it an invaluable asset on your journey toward a Six Sigma management culture.
Howard S. Gitlow, PhD
Professor
Six Sigma Master Black Belt
Department of Management Science
University of Miami
hgitlow@miami.edu
Richard J. Melnyck, MBA, MS in MAS, and MAS in CIS

Six Sigma Master Black Belt
Assistant Vice President for Medical Affairs
Executive Director of Process Improvement
Office of the Senior Vice President for Medical Affairs and Dean
University of Miami Miller School of Medicine
rmelnyck2@med.miami.edu
David M. Levine, PhD

Professor Emeritus
Department of Statistics and Computer Information Systems
Baruch College
City University of New York
DavidMLevine@msn.com
Lets Go!
We are excited to begin this journey with youthe journey of process improvement that we
hope transforms your job and more importantly your life! While this is a technical book, we
want to make it fun and interesting so that you will remember more of what we are teach-
ing you. We tried to add humor and stories to make the journey a fun one. So what are we
waiting for? Lets go!
References
Gitlow, H. (2009), A Guide to Lean Six Sigma Management Skills (New York: CRC Press).
Gitlow, H., Viewing Statistics from a Quality Control Perspective, International Journal of
Quality and Reliability Management, vol.18, issue 2, 2001.
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Index
data collection plan for Xs, 339-340, 348
A FMEA (failure modes and effects analysis),
accounts receivable, 394-396 338
activating Six Sigma team go-no go decision point, 342-343
case study, 292-293 hypotheses about relationship between criti-
overview, 274-276 cal Xs and CTQs, 342, 354
Act phase identification of Xs for CTQs, 335-338,
PDSA cycle, 207 344-346
SDSA cycle, 204 measurement system for Xs, validating, 340,
actual versus ideal, 6 348
operational definitions for Xs, 338, 346-347
adopting new philosophy, 413
overview, 214-215
affinity diagrams
pitfalls to avoid, 343-344
creating, 181-182
purpose of, 333-334
defined, 156
test of theories to determine critical Xs,
example, 156 340-342, 348-353
purpose of, 156 tips for success, 343-344
affordances, 197 tollgate reviews, 354-355
aim, 18 ANSI (American National Standards Institute)
Allied Signal, 253 standard flowchart symbols, 43-44
allocating anxiety, 423
resources, 250-251 appreciation of a system, 411
work, 405-406 arbitrary goals, posters, and slogans,
alternative methods eliminating, 424
generating Arena, 359
case study, 366-367 assumptions in planning, 13-14
explained, 358-359 attribute check sheets, 177-178
selecting
attribute classification data
case study, 367-368
explained, 47-48
explained, 360-361
measures of central tendency, 61-62
American National Standards Institute (ANSI)
attribute control charts, 90
standard flowchart symbols, 43-44
attribute count data
Analyze phase (DMADV cycle), 218-219
explained, 48-49
Analyze phase (DMAIC model)
graphing
case study: reducing patient no shows in
bar charts, 50-51
outpatient psychiatric clinic, 344-355
line graphs, 52-54
current state flowchart, creating, 334,
344-345 Pareto diagrams, 51-52
439
attribute data, 47 baseline data analysis for CTQs
c charts, 104-106 case study, 328-329
p charts, 98-104 explained, 317-321
u charts, 106-108 benchmarking, 359, 367, 418
automation, 189 benefits of project
autonomous maintenance, 223 Define phase (DMAIC model), 281-282
average, 266 documenting
case study, 387
explained, 383
B best alternative method, selecting, 367-368
background check process, 19-20 Black Belts, 258-260
backsliding, preventing, 393 board of directors, 404-406
board of directors culture, 404-406 Bossidy, Larry, 253
allocation of work, 405-406 bottlenecks, 189
components of, 405 boundaries (process), 37-38
engagement, 406 brainstorming, 358-359, 366
reducing variability, 406 conducting brainstorming sessions, 179-181
shared values/beliefs, 405 defined, 155
trust, 406 example, 155-156
dashboards, 396-397 purpose of, 155
egotism, 403-404 business case
failure in Act phase of PDSA cycle case study, 293-294
in accounts receivable, 394-396 explained, 276-277
in manufacturing, 393-394
Funnel Experiment, 398-399
presidential review of maintainability indi- C
cators, 397
succession planning Calculator dialog box (Minitab), 78, 84
creating talent pools model, 400 cause and effect (C&E) diagrams
explained, 399 creating, 182
incumbent model, 399-400 defined, 157
process oriented top-down/bottom-up examples, 157-159
model, 401-403 purpose of, 157
top-down/bottom-up model, 400-401 causes of variation, 6-8
balanced scorecards, 232 C Chart dialog box (Minitab), 134
Bar Chart: Data Options dialog box (Minitab), c charts, 104-106
74-75 creating in Minitab, 134
bar charts example, 105-106
explained, 50-51 explained, 104
obtaining in Minitab, 74-76 when to use, 105
Bar Charts dialog box (Minitab), 74-76 ceasing dependence on mass inspection,
barriers, removing 413-414
barrier between departments, 423-424 C&E diagrams. Seecause and effect (C&E)
barriers to pride of workmanship, 426-429 diagrams
Centers for Medicare and Medicaid Services
(CMS), 237
440 Index
central tendency, measures of control charts, 7
mean, 59 attribute control charts, 90
median, 60 case study (defective surgical screws),
mode, 60-61 119-125
proportion, 61-62 c charts, 104-106, 134
Champions, 256-257 choosing, 119
change concepts, 2, 419 control limits, 93
changing work environment, 191-192 explained, 90
defined, 160 I-MR (Individuals and Moving Range)
designing systems to avoid mistakes, charts, 109-112, 136-137
196-197 p charts, 98-104, 131-133
eliminating waste, 187-188 rules for determining out of control points,
enhancing producer/customer relationship, 93-98
193-194 three-sigma limits, 93
example, 162-163 type one errors, 92
focusing on product/service, 197-198 type two errors, 92
generating u charts, 106-108, 134-136
case study, 366-367 variables control charts, 91
explained, 358-359 X Bar and R charts, 112-115, 137-139
improving work flow, 188-190 X Bar and S charts, 115-119, 139-142
managing time, 194-195 dot plots
managing variation, 195-196 explained, 55-56
optimizing inventory, 190-191 obtaining in Minitab, 82-83
overview, 185-187 flowcharts
purpose of, 162 advantages of, 39-40
selecting, 360-361, 367-368 analyzing, 44-45
70 change concepts, 359 ANSI standard flowchart symbols, 43-44
changing creating, 165-166
set points, 188 current state flowchart, 334, 344-345
targets, 188 defined, 146
work environment, 191-192 deployment flowcharts, 42-43, 148, 334
future state flowchart, 361, 368-369
charter. See project charter
process flowcharts, 40-41, 147, 334
charts
purpose of, 146
affinity diagrams
simple generic flowchart, 39
creating, 181-182
symbols and functions, 165
defined, 156
Gage run charts, 313-317, 327
example, 156
Gantt charts, 279-280
purpose of, 156
case study, 296-297
bar charts
creating, 185
explained, 50-51
defined, 159
obtaining in Minitab, 74-76
example, 161
cause and effect (C&E) diagrams
purpose of, 160
creating, 182
histograms
defined, 157
explained, 54-55
examples, 157-159
purpose of, 157
Index 441
line graphs pilot tests, 362
explained, 52-54 purpose of, 163
obtaining in Minitab, 78-79 operational definitions, 11-13
Pareto diagrams competition, 411
creating, 182-185 complaints
definition of, 159 customer feedback, 237
example, 159 employee feedback, 234-235
explained, 51-52 compliance, regulatory, 237-238
obtaining in Minitab, 76-77 constancy of purpose, 413
purpose of, 159
constraints, 197
run charts
contingency plans, 195
explained, 56-58
obtaining in Minitab, 84-85 continuous data, 49-50
checklist, measurement system analysis check- continuous improvement, 9-11, 414
list, 126-127 continuous improvement definition of quality,
check sheets 32-33
attribute check sheets, 177-178 control charts, 7
defect location check sheets, 179 attribute control charts, 90
defined, 153 case study (defective surgical screws),
example, 153-155 119-125
measurement check sheets, 178 c charts, 104-106
purpose of, 153 creating in Minitab, 134
example, 105-106
classification data, 47
explained, 104
classifications, 188
when to use, 105
clean workplace, 417 choosing, 119
CMS (Centers for Medicare and Medicaid control limits, 93
Services), 237 explained, 90
collateral damage to related processes, I-MR (Individuals and Moving Range)
reducing charts, 109-112
case study, 386 creating in Minitab, 136-137
explained, 376-378 example, 109-112
collecting baseline data for CTQs explained, 109
case study, 328-329 p charts, 98-104
explained, 317-321 creating in Minitab, 131-133
common cause feedback loops, 23-24 explained, 98
common variation, 6-8, 89 p chart with equal subgroup size, 99-102
explained, 25-26 p chart with unequal subgroup size,
Funnel Experiment, 27-29 102-104
Red Bead Experiment, 30-31 when to use, 98-99
communication rules for determining out of control points,
communication plans 93-98
case study, 299, 300 three-sigma limits, 93
creating, 198-200 type one errors, 92
defined, 163 type two errors, 92
example, 164 u charts, 106-108
explained, 282-283 creating in Minitab, 134-136
example, 107-108
442 Index
explained, 106 cross-training, 192
when to use, 107 CTQs (Critical-to-Quality characteristics),
variables control charts, 91 145, 260
X Bar and R charts, 112-115 baseline data analysis
example, 113-115 case study, 328-329
explained, 112 explained, 317-321
obtaining from Minitab, 137-139 data collection plan, 312-313, 325-326
X Bar and S charts, 115-119 defined, 145, 260, 333
example, 115-119 definition of, 288-289, 308
explained, 115 measurement system, validating, 313-317
obtaining from Minitab, 139-142 operational definitions, 312
control limits, 93 operation definitions, 325-326
Control phase (DMAIC model) process capability estimation, 321-323
case study: reducing patient no shows in culture
outpatient psychiatric clinic, 386-391 board of directors, 404-406
collateral damage to related processes, defined, 404-405
reducing, 376-378 current state flowchart, creating
control plans, developing, 380-381 case study, 344-345
costs/benefits, documenting, 383 explained, 334
diffusion of improvements, 383-384 customer feedback, 237
overview, 216 customers
pitfalls to avoid, 385 customer focus groups, 236
projects, inputting into Six Sigma data- customer segments, 285
base, 383
customer surveys, 236
purpose of, 375-376
identifying, 285
standardization, 379-380
producer/customer relationship, enhancing,
tips for success, 385 193-194
tollgate reviews, 384-385 Voice of the Customer analysis. See VoC
control plans, developing (Voice of the Customer) analysis
case study, 387-389
explained, 380-381
cooperation, 411 D
coordinators, 193 dashboards, 232 238-240, 396-397
costs data
benefits and, 281-282 attribute classification data
cost avoidance, 242, 281 explained, 47-48
cost reduction, 242, 281 measures of central tendency, 61-62
costs/benefits, documenting attribute count data
case study, 387 explained, 48-49
explained, 383 graphing, 50-54
intangible costs, 242, 281 attribute data, 47
reduction, 242 central tendency, measures of
tangible costs, 242, 281 mean, 59
count data, 47 median, 60
Critical-to-Quality characteristics. SeeCTQs mode, 60-61
(Critical-to-Quality characteristics) proportion, 61-62
Index 443
defined, 47 pitfalls to avoid, 291-292
measurement data, 49-50 project charter, 276-283, 293-299
graphing, 54-58 purpose of, 273-274
measures of central tendency, 59-61 SIPOC analysis, 283-286, 299
shape, measures of, 66-68 Six Sigma team, activating, 274-276, 292-293
skewness tips for success, 291-292
defined, 66 tollgate review, 290-291, 308-309
negative or left skewness, 67-68 VoC (Voice of the Customer) analysis,
positive or right skewness, 66-67 286-288, 299-308
symmetrical distribution, 66 defining processes
variables, 47 boundaries, 37-38
variation, measures of flowcharts, 40-41
range, 62-63 importance of, 35-36
standard deviation, 63-66, 68-69 objectives, 38
variance, 63-66 ownership, 36
database, inputting projects into, 383 Deming cycle, 417-419
data collection plan Deming, W. Edwards, 27, 30. See also System
for CTQs, 312-313, 325-326 of Profound Knowledge
VoC (Voice of the Customer) analysis, 167, biographical information, 409
287 quotations, 434-435
for Xs, 339-340, 348 dependence on mass inspection, ceasing,
data interpretation, VoC (Voice of the 413-414
Customer) analysis, 167, 288 deployment flowcharts, 42-43, 148, 334
data redundancy, 187 descriptive statistics, obtaining in Minitab,
decision matrix, 361, 367 85-87
decision symbol, 43 desensitization, 196
defects, 289, 322 Design for Six Sigma for Green Belts and
defined, 261, 289 Champions: Foundations, DMADV, Tools
defect location check sheets, 179 and Methods, Cases and Certification
defect opportunities, 261, 289, 322 (Gitlow et al.), 359
defective surgical screws case study, 119-125 designing systems to avoid mistakes, 196-197
detection, 414 Design of Experiments (DoE), 359
DPMO (defects per million opportunities), Design phase (DMADV cycle), 219
262 determining out of control points, 93-98
DPOs (defects per opportunity), 261 developing
DPUs (defects per unit), 261 control plans
latent defects, 253 case study, 387-389
prevention, 414 explained, 380-381
Define phase (DMADV cycle), 218 hypotheses, 342
Define phase (DMAIC model) diagrams. See also charts
case study: reducing patient no shows in affinity diagrams
outpatient psychiatric clinic, 292-309 creating, 181-182
definition of CTQs, 288-289, 308 defined, 156
go-no go decision point, 290-291, 308-309 example, 156
initial draft of project objective, 289-290, 308 purpose of, 156
overview, 213
444 Index
cause and effect (C&E) diagrams Control phase
creating, 182 case study: reducing patient no shows in
defined, 157 outpatient psychiatric clinic, 386-391
examples, 157-159 collateral damage to related processes,
purpose of, 157 reducing, 376-378
Pareto diagrams, 51-52 control plans, developing, 380-381
adding to Minitab worksheets, 76-77 costs/benefits, documenting, 383
creating, 182-185 diffusion of improvements, 383-384
definition of, 159 overview, 216
example, 159 pitfalls to avoid, 385
purpose of, 159 projects, inputting into Six Sigma data-
differentiation, 196 base, 383
purpose of, 375-376
diffusing improvements throughout
organization standardization, 379-380
case study, 390 tips for success, 385
explained, 383-384 tollgate reviews, 384-385
Define phase
Display Descriptive Statistics dialog box
(Minitab), 86 case study: reducing patient no shows in
diversity, 5
definition of CTQs, 288-289, 308
DMADV model go-no go decision point, 290-291, 308-309
example, 219-221 initial draft of project objective,
explained, 218 289-290, 308
DMAIC model overview, 213
Analyze phase pitfalls to avoid, 291-292
case study: reducing patient no shows in project charter, 276-283, 293-299
outpatient psychiatric clinic, 344-355 purpose of, 273-274
current state flowchart, creating, 334, SIPOC analysis, 283-286, 299
344-345 Six Sigma team, activating, 274-276,
data collection plan for Xs, 339-340, 348 292-293
FMEA (failure modes and effects analy- tips for success, 291-292
sis), 338 tollgate review, 290-291, 308-309
go-no go decision point, 342-343 VoC (Voice of the Customer) analysis,
hypotheses about relationship between 286-288, 299-308
critical Xs and CTQs, 342, 354 example, 216-217
identification of Xs for CTQs, 335-338, Improve phase
344-346
alternative methods, generating, 358-359
measurement system for Xs, validating,
best alternative method, selecting, 360-361
340, 348
operational definitions for Xs,
346-347, 338
future state flowchart, creating, 361
overview, 214-215
go-no go decision point, 364-365
pitfalls to avoid, 343-344
overview, 216
purpose of, 333-334
pilot testing, 362-364
340-342, 348-353 pitfalls to avoid, 365-366
tips for success, 343-344 purpose of, 357-358
tollgate reviews, 354-355 risk mitigation, 362
Index 445
tips for success, 365-366 E
tollgate reviews, 365
Measure phase education
baseline data analysis for CTQs, 317-321, encouraging, 430
328-329 quality in, 434
data collection plan for CTQs, 312-313, egotism, 403-404
325-326 80-20 rule, 8
go-no go decision point, 323-324, 330 eliminating
operational definitions for CTQs, 312, arbitrary goals, posters, and slogans, 424
325-326 management by objective, 425-426
overview, 213-214 waste, 187-188
pitfalls to avoid, 324 work standards (quotas), 424-425
process capability estimation for CTQs, employee feedback, 234-235
321-323
employee focus groups, 233
purpose of, 311-312
tips for success, 324 employee forums, 233-234
tollgate reviews, 323-324, 330 employee surveys, 234
validation of measurement system for empowerment, 420-421
CTQs, 326-327 ending practice of awarding business on basis
Measure phase (DMAIC model) of price, 414-415
validation of measurement system for engagement, board of directors, 406
CTQs, 313-317 enhancing producer/customer relationship,
overview, 212-213 193-194
documenting errors, 92
costs/benefits estimating
case study, 387 process capability for CTQs, 321-323
explained, 383 project benefits, 242
processes time to complete project, 245-246
flowcharts, 39-44 executing projects, 250-251
importance of, 35-36 executive steering committee, 256
DoE (Design of Experiments), 359 expansion of knowledge through theory, 13
Do phase expectations, 193
PDSA cycle, 207
experimental design, 359
SDSA cycle, 203
external proactive sources, 235-236
dot plots
external reactive sources, 236-238
explained, 55-56
obtaining in Minitab, 82-83 extrinsic motivation, 410
Dotplots dialog box (Minitab), 82
DPMO (defects per million opportunities),
262
F
DPOs (defects per opportunity), 261 failure in Act phase of PDSA cycle
in accounts receivable, 394-396
DPUs (defects per unit), 261
in manufacturing, 393-394
driving out fear, 423
Failure Modes and Effects Analysis. See FMEA
(Failure Modes and Effects Analysis)
fear, 423
446 Index
feedback ceasing dependence on mass inspection,
customer feedback, 237 413-414
employee feedback, 234-235 creating constancy of purpose, 413
loops driving out fear, 423
common cause feedback loops, 23-24 eliminating arbitrary goals, posters, and
defined, 19 slogans, 424
lack of, 23 eliminating management by objective,
fishbone diagrams. See cause and effect (C&E) 425-426
diagrams eliminating work standards (quotas),
424-425
5S methods, 221-223, 417
encouraging education and
flowcharts self-improvement, 430
advantages of, 39-40 ending practice of awarding business on
analyzing, 44-45 basis of price, 414-415
ANSI standard flowchart symbols, 43-44 improving constantly the system of produc-
creating, 165-166 tion and service, 415-421
current state flowchart, creating, 334, instituting leadership, 422-423
344-345 reduction of variation and, 430-433
defined, 146 removing barriers to pride of workmanship,
deployment flowcharts, 42-43, 148, 334 426-429
future state flowchart, 361, 368-369 taking action to accomplish transformation,
process flowcharts, 40-41, 147, 334 430
purpose of, 146 training on the job, 421-422
simple generic flowchart, 39 Funnel Experiment, 27-29, 398-399
symbols and functions, 165 future state flowchart, 361, 368-369
flowline symbol, 43
FMEA (Failure Modes and Effects
Analysis), 283 G
case study, 299-301, 346
Gage R&R studies, 127-131
conducting, 174-177
Gage run charts, 313-317, 327
defined, 153
example of, 175 Gantt charts, 279-280
explained, 338 case study, 296-297
purpose of, 153 creating, 185
defined, 159
focus groups
example, 161
customer focus groups, 236
purpose of, 160
General Electric, 253
focus on product/service, 197-198
generating alternative methods
focus points, 288
case study, 366-367
forced ranking of employees, 428-429
explained, 358-359
form value, 4
goal post view of quality, 31-32
forums, employee, 233-234
goal statement, 278, 294
14 Points (Deming), 413-430
go-no go decision point
adopting new philosophy, 413
Analyze phase, 342-343, 354-355
breaking down barriers between depart-
Define phase, 290-291, 308-309
ments, 423-424
Improve phase, 364-365, 373
Measure phase, 323-324, 330
Index 447
government, quality in, 434 projects
graphing customer feedback, 237
attribute count data customer focus groups, 236
bar charts, 50-51 customer surveys, 236
line graphs, 52-54 employee feedback, 234-235
Pareto diagrams, 51-52 employee focus groups, 233
measurement data employee forums, 233-234
dot plots, 55-56 employee surveys, 234
histograms, 54-55 managerial dashboards, 238-240
run charts, 56-58 project identification matrix, 231
in Minitab regulatory compliance issues, 237-238
bar charts, 74-76 strategic/tactical plans, 232
dot plots, 82-83 VoC (Voice of the Customer) interviews,
histograms, 79-82 235-236
line graphs, 78-79 VoE (Voice of the Employee) interviews,
Pareto diagrams, 76-77 232-233
run charts, 84-85 suppliers, 285
Green Belts, 259-260 impact/effort matrix, 360
improvements, maintaining, 393
board of directors culture, 404-406
H dashboards, 396-397
handoffs, minimizing, 189 diffusing throughout organization
case study, 390
hard benefits, 281-282
explained, 383-384
Health Insurance Portability and Accountabil-
egotism, 403-404
ity Act (HIPAA), 237
failure in Act phase of PDSA cycle
health maintenance, 224
in accounts receivable, 394-396
high-level project charters, 246-247, 275 in manufacturing, 393-394
HIPAA (Health Insurance Portability and Funnel Experiment, 398-399
Accountability Act), 237 presidential review of maintainability indi-
histograms cators, 397
explained, 54-55 standardization
obtaining in Minitab, 79-82 case study, 386-387
Histogram: Scale dialog box (Minitab), 81 explained, 379-380
Histograms dialog box (Minitab), 80 succession planning
history of Six Sigma, 253-254 creating talent pools model, 400
hypothesis development, 342 explained, 399
incumbent model, 399-400
process oriented top-down/bottom-up
I model, 401-403
top-down/bottom-up model, 400-401
ideal versus actual, 6
Improve phase (DMAIC model)
identifying
alternative methods, generating, 358-359
customers, 285
best alternative method, selecting, 360-361
inputs, 285
outputs, 285
potential Xs, 308
future state flowchart, creating, 361
448 Index
go-no go decision point, 364-365 interviews
overview, 216 VoC (Voice of Customer) interviews,
pilot testing, 362-364 235-236
pitfalls to avoid, 365-366 VoE (Voice of the Employee) interviews,
purpose of, 357-358 232-233
risk mitigation, 362 intrinsic motivation, 1, 410
tips for success, 365-366 inventory optimization, 190-191
tollgate reviews, 365 ISO (International Standards Organization),
I-MR Chart: Options dialog box (Minitab), 379-380
136
I-MR (Individuals and Moving Range) charts,
109-112 J-K
creating in Minitab, 136-137 JCAHO (Joint Commission on Accreditation
example, 109-112 of Healthcare Organizations), 237
explained, 109
incumbent succession planning model, Kaizen
399-400 example, 210-212
independent components, system of, 401 explained, 209-210
Individuals and Moving Range (I-MR) charts, key performance indicators (KPIs), 232
109-112 knowledge
creating in Minitab, 136-137 expanding through theory, 13
example, 109-112 theory of (Deming), 412
explained, 109
KPIs (key performance indicators), 232
initial draft of project objective
kp rule, 414
case study, 308
explained, 289-290
inputs, 18, 285 L
inputting projects into Six Sigma database,
383 latent defects, 253
inspect all-or-none rule, 414 LCL (lower control limit), 7, 92
inspection, 194 leadership, 422-423
intangible costs, 242, 281 lean thinking, 341
5S methods, 221-223
intermediaries, 188
overview, 221
internal proactive sources
poka-yoke, 224-225
SMED (Single Minute Exchange of Dies),
employee forums, 233-234 224-225
employee surveys, 234 tools and methods, 359
explained, 232 TPM (Total Productive Maintenance),
strategic/tactical plans, 232 223-224
VoE (Voice of the Employee) interviews, value streams, 226-227
232-233
left skewness, 67-68
internal reactive sources, 234-235
life as a process, 3-4
International Standards Organization (ISO),
line graphs
379-380
explained, 52-54
interrelated components, system of, 401
Index 449
lower control limit (LCL), 7, 92 matrices
lower specification limit (LSL), 31 decision matrix, 361, 367
LSL (lower specification limit), 31 impact/effort matrix, 360
project identification matrix, 231
project prioritization matrix, 248-250
M MBO (management by objectives), 425-426
maintainability indicators, presidential review mean, 59, 266, 341
of, 397 measured day work, 424
maintaining improvements. See improve- measurement check sheets, 178
ments, maintaining measurement data, 49-50
maintenance control charts, 108-109
autonomous maintenance, 223 I-MR (Individuals and Moving Range)
health maintenance, 224 charts, 109-112
planned maintenance, 223-224 X Bar and R charts, 112-115
Total Productive Maintenance (TPM), X Bar and S charts, 115-119
223-224 graphing
management by data, 410 dot plots, 55-56
management by guts, 410 histograms, 54-55
management by objectives (MBO), 425-426 run charts, 56-58
management terminology, 260-264 measures of central tendency
CTQs. See CTQs (Critical-to-Quality char- mean, 59
acteristics) median, 60
defective, 261 mode, 60-61
defects, 261 measurement system analysis checklist,
DPMO (defects per million opportunities), 126-127
262 measurement systems analysis
DPOs (defects per opportunity), 261 for CTQs, 313-317, 326-327
DPUs (defects per unit), 261 explained, 126
process sigma, 262-264 Gage R&R studies, 127-131
RTY (rolled throughput yield), 262 measurement system analysis checklist,
units, 261 126-127
yield, 262 for Xs, 340, 348
management theory (Deming). See System of Measure phase (DMADV cycle), 218
Profound Knowledge Measure phase (DMAIC model)
managerial dashboards, 238-240 baseline data analysis for CTQs, 317-321,
managing 328-329
time, 194-195 data collection plan for CTQs, 312-313,
variation, 195-196 325-326
manufacturing, failure in Act phase of PDSA go-no go decision point, 323-324, 330
cycle, 393-394 operational definitions for CTQs, 312,
325-326
market segmentation, 166-167
overview, 213-214
mass inspection, 413-414
pitfalls to avoid, 324
Master Black Belts, 257-258 process capability estimation for CTQs,
321-323
purpose of, 311-312
450 Index
tips for success, 324 non-quantitative tools
tollgate reviews, 323-324, 330 affinity diagrams, 156, 181-182
validation of measurement system for CTQs, brainstorming, 155-156, 179-181
313-317, 326-327 cause and effect (C&E) diagrams, 157-159,
measures. See statistical analysis 182
median, 60, 341 change concepts
methodology selection, 243-245 changing work environment, 191-192
milestones, 279-280, 295 defined, 160
designing systems to avoid mistakes,
minimizing handoffs, 189
196-197
Minitab, 70 eliminating waste, 187-188
bar charts, 74-76 enhancing producer/customer relation-
control charts, 131 ship, 193-194
c charts, 134 example, 162-163
I-MR (Individuals and Moving Range) focusing on product/service, 197-198
charts, 136-137 improving work flow, 188-190
p charts, 131-133 managing time, 194-195
u charts, 134-136 managing variation, 195-196
X Bar and R charts, 137-139 optimizing inventory, 190-191
X Bar and S charts, 139-142 overview, 185-187
zone limits, plotting, 131 purpose of, 162
descriptive statistics, 85-87 check sheets, 153-155, 177-178
dot plots, 82-83 communication plans, 163-164, 198-200
histograms, 79-82 flowcharts, 146-148, 165-166
line graphs, 78-79 FMEA (Failure Modes and Effects Analysis),
Pareto diagrams, 76-77 153, 174-177
run charts, 84-85 Gantt charts, 159-161, 185
worksheets, 70-74 operational definitions, 151-153
mission statements, 18 overview, 145
mistakes, designing systems to avoid, 196-197 Pareto diagrams, 159, 182-185
mitigating risk SIPOC analysis, 149-151, 172-173
case study, 369 VoC (Voice of the Customer) analysis
explained, 362 case study: reducing patient no shows at
mode, 60-61 outpatient psychiatric clinic, 168-172
monthly steering committee reviews, 251 data collection, 167
motivation, 1, 410 data interpretation, 167
Motorola Corporation, 417 defined, 146
market segmentation, 166-167
multiple processing units, 190
planning, 167
purpose of, 149
N non-technical definition of Six Sigma, 253
normal distribution, 68, 266
negative reactive behaviors, 423
numeric data
negative skewness, 67-68
attribute classification data
new paradigm of leadership, 434 explained, 47-48
nominal value, 31 measures of central tendency, 61-62
Index 451
attribute count data outputs, 18, 285
explained, 48-49 overjustification, 413
graphing, 50-54 ownership of processes, 36
attribute data, 47, 61-62
central tendency, measures of
mean, 59 P
median, 60 paradigm shift, 433-434
mode, 60-61
Pareto Chart dialog box (Minitab), 76-77
proportion, 61-62
Pareto diagrams
measurement data, 49-50
adding to Minitab worksheets, 76-77
graphing, 54-58
creating, 182-185
measures of central tendency, 59-61
definition of, 159
shape, measures of, 66-68
example, 159
skewness
explained, 51-52
defined, 66
purpose of, 159
negative or left skewness, 67-68
positive or right skewness, 66-67 passive baseline data, 318
symmetrical distribution, 66 patient no shows at outpatient psychiatric
variation, measures of clinic (case study)
range, 62-63 Analyze phase
standard deviation, 63-66, 68-69 current state process flowchart, 344-345
variance, 63-66 data collection plan for Xs, 348
FMEA (failure modes and effects analy-
sis), 346
O go-no go decision point, 354-355
hypotheses about relationship between
objectives of processes, 38 critical Xs and CTQs, 354
opening Minitab worksheets, 71-74 identification of Xs for CTQs, 344-346
Open Worksheet dialog box (Minitab), 72 measurement system for Xs, validating,
operational definitions, 11-13, 412, 416 348
creating, 173-174 operational definitions of Xs, 346-347
defined, 151 test of theories to determine critical Xs,
example, 151-153 348-353
importance of, 153 tollgate reviews, 354-355
of CTQs Control phase, 386-391
case study, 325-326 collateral damage to related processes,
explained, 312 reducing, 386
purpose of, 151 control plan, developing, 387-389
for Xs diffusion of improvements, 390
case study, 346-347 financial impact, 387, 390
explained, 338 project, inputting into Six Sigma database,
390
optimization, 190-191, 411
standardized improvements, 386-387
out of control points, determining, 93-98
tollgate review, 390-391
outpatient psychiatric clinic case study. See Define phase
patient no shows at outpatient psychiatric
definition of CTQs, 308
clinic (case study)
go-no go decision point, 308-309
initial draft of project objective, 308
452 Index
project charter, 293-299 planned maintenance, 223-224
SIPOC analysis, 299 Plan phase (PDSA cycle), 206
Six Sigma team, activating, 292-293 plans
tollgate reviews, 308-309 assumptions, 13-14
VoC (Voice of the Customer) analysis, communication plan
299-308 case study, 299-300
Improve phase, 366-373 explained, 282-283
alternative methods, generating, 366-367 communication plans
best alternative method, selecting, 367-368 creating, 198-200
future state flowchart, creating, 368-369 defined, 163
go-no go decision point, 373 example, 164
pilot testing, 369-372 purpose of, 163
risk mitigation, 369 contingency plans, 195
tollgate review, 373 control plans, 380-381
Measure phase risk abatement plan, 283, 299
baseline data analysis, 328-329 stability, 13-14
data collection plan for CTQs, 325-326 strategic/tactical plans, 232
go-no go decision point, 330 succession planning, 399-403
operational definitions of CTQs, 325-326 VoC (Voice of the Customer) analysis,
tollgate review, 330 167, 287
validation of measurement system for plotting zone limits, 131
CTQs, 326-327
poka-yoke, 224-225
VoC (Voice of the Customer) analysis,
168-172 positive skewness, 66-67
pay system, 191 potential Xs, identifying, 308, 335-338
P Chart dialog box (Minitab), 132 predictions, improving, 195
p charts, 98-104 presidential review of maintainability indica-
tors, 397
creating in Minitab, 131-133
explained, 98 prevailing paradigm of leadership, 433
p chart with equal subgroup size, 99-102 preventing backsliding. See backsliding,
p chart with unequal subgroup size, 102-104 preventing
when to use, 98-99 pride of workmanship, 426-429
PDSA (Plan-Do-Study-Act) cycle, 417-419 prioritizing projects, 247-250
example, 207-209 proactive data, 167
explained, 206-207 proactive sources. See external proactive
failure in Act phase, 393-396 sources; internal proactive sources
performance appraisal systems, 428 problem statements, 247, 277-278, 294
piecework, 424 process capability estimation for CTQs,
pilot tests, 362-364 321-323
case study, 369-372 processes, 17. See also quality; variation
communication plans, 362 analyzing, 44-45
data analysis, 362-364 defined, 18
employee training, 362 defining, 35-38
pilot test charter, 362-363 DMAIC model. SeeDMAIC model
place value, 3 documenting
ANSI standard flowchart symbols, 43-44
Plan-Do-Study-Act (PDSA) cycle, 417-419
benefits of flowcharts, 39-40
Index 453
deployment flowcharts, 42-43 processing symbol, 43
process flowcharts, 40-41 process oriented top-down/bottom-up succes-
simple generic flowchart, 39 sion planning, 401-403
examples, 19-22 Process Owners, 257
feedback loops, 19, 23-24 process sigma, 262-264
flowcharts, 39-41, 44-45, 147, 334 producer/customer relationship, enhancing,
importance of, 19 193-194
maintaining improvements. See improve- production, improving, 415-421
ments, maintaining
products
orientation, 410
focus on, 197-198
process flowcharts, 40-41
maintaining improvements. See improve-
process sigma, 262-264 ments, maintaining
variation. Seevariation
Profound Knowledge, System of. See System of
where processes exist, 18-19 Profound Knowledge
process improvement methodologies Project Champions, 256-257
DMAIC model. See DMAIC model
project charter, 276-283
Kaizen/Rapid Improvement Events
benefits and costs, 281-282
example, 210-212
business case, 276-277
explained, 209-210
case study, 293-299
lean thinking
communication plan, 282-283
5S methods, 221-223
goal statement, 278
overview, 221
high level project charter, 275
poka-yoke, 224-225
problem statement, 277-278
SMED (Single Minute Exchange of Dies),
project plan with milestones, 279-280
224-225
project scope, 278-279
TPM (Total Productive Maintenance),
223-224 risk abatement plan, 283
value streams, 226-227 roles and responsibilities, 282
non-quantitative tools. See non-quantitative project objective, initial draft of, 289-290, 308
tools project plan with milestones, 279-280, 295
PDSA cycle project prioritization matrix, 248-250
example, 207-209 projects
explained, 206-207 benefits, 242
principles, 3-14 executing, 250-251
continuous improvement, 9-11 identifying
expansion of knowledge through customer feedback, 237
theory, 13 customer focus groups, 236
life as a process, 3-4 customer surveys, 236
operational definitions, 11-13 employee feedback, 234-235
special and common causes of variation, employee focus groups, 233
6-8 employee forums, 233-234
stability in planning, 13-14 employee surveys, 234
stable versus unstable processes, 8-9 managerial dashboards, 238-240
variation in processes, 5-6 project identification matrix, 231
waste in processes, 11 regulatory compliance issues, 237-238
SDSA cycle, 203-204 strategic/tactical plans, 232
454 Index
VoC (Voice of the Customer) interviews, reviews
235-236 monthly steering committee reviews, 251
VoE (Voice of the Employee) interviews, presidential review of maintainability indi-
232-233 cators, 397
prioritizing, 247-250 tollgate reviews
screening and scoping, 278-279, 294-295 Analyze phase, 342-344, 354-355
estimation of project benefits, 242 Control phase, 384-385, 390-391
estimation of time to completion, 245-246 Define phase, 290-291, 308-309
high-level project charters, 246-247 Improve phase, 365, 373
overview, 240-241 Measure phase, 323-324, 330
problem statements, 247 right skewness, 66-67
project methodology selection, 243-245 risk mitigation, 362, 369
questions to ask, 241 risk abatement plan, 283, 299
selecting, 250
risk sharing, 192
tracking, 250-251
roles
proportion, 61-62
Black Belts, 258-259, 260
psychiatric clinic case study. See patient no executive steering committee, 256
shows at outpatient psychiatric clinic (case
Green Belts, 259-260, 260
study)
Master Black Belts, 257-258
psychology, 412-413
Process Owners, 257
pull systems, 190 Project Champions, 256-257
push systems, 190 Senior Executives, 255
RTY (rolled throughput yield), 262
Run Chart dialog box (Minitab), 85
Q-R run charts
quality, 31-33, 434 explained, 56-58
quick changeover, 224-225 obtaining in Minitab, 84-85
quotas, 424-425
quotations from W. Edwards Deming, 434-435
S
range, 62-63 sampling, 188
ranking of employees, 428-429 Sarbanes Oxley Act (SOX), 237
Rapid Improvement Events, 209-210 Save Worksheet As dialog box (Minitab), 73
reactive data, 167 saving Minitab worksheets, 71-74
reactive sources. See external reactive sources; scope
internal reactive sources case study, 294-295
recycling, 188 project scope, 278-279
Red Bead Experiment, 30-31 scoping projects
reduction of patient no shows at outpatient estimation of project benefits, 242
psychiatric clinic. See patient no shows at estimation of time to completion, 245-246
outpatient psychiatric clinic (case study) high-level project charters, 246-247
regulatory compliance issues, 237-238 overview, 240-241
reminders, 196 problem statements, 247
resources, allocating, 250-251 project methodology selection, 243-245
responsibilities (team), 282, 298 questions to ask, 241
Index 455
scorecards, balanced, 232 explained, 283-286
screening projects purpose of, 149
estimation of project benefits, 242 Six Sigma
estimation of time to completion, 245-246 benefits of, 254
high-level project charters, 246-247 history of, 253-254
overview, 240-241 importance of, 272
problem statements, 247 management opportunities, 261
project methodology selection, 243-245 management terminology, 260-264
questions to ask, 241 CTQs. See CTQs (Critical-to-Quality
SDSA (Standardize-Do-Study-Act) cycle, characteristics)
203-204, 416-417 defective, 261
segmentation defects, 261
customer segments, 285 DPMO (defects per million opportunities),
market segmentation, 166-167 262
seiketsu, 417 DPOs (defects per opportunity), 261
DPUs (defects per unit), 261
seiri, 417
process sigma, 262-264
seiso, 417
RTY (rolled throughput yield), 262
seiton, 417 units, 261
self-discipline, 222, 417 yield, 262
self-improvement, 430 non-technical definition, 253
Senior Executives, 255 roles
service Black Belts, 258-260
focus on, 197-198 executive steering committee, 256
improving, 415-421 Green Belts, 259-260
quality in, 434 Master Black Belts, 257-258
maintaining improvements. See improve- Process Owners, 257
ments, maintaining Project Champions, 256-257
set points, changing, 188 Senior Executives, 255
70 change concepts, 359 teams, activating
shape, measures of, 66-68 case study, 292-293
shared mission, 405 overview, 274-276
shared risks, 192 technical definition, 253, 266-272
shared values/beliefs, 405 normal distribution, 266
relationship between VoP and VoC,
shitake, 417
266-271
shitsuke, 417 tips for success, 255
simulation, 359 skewness, 66-68
Single Minute Exchange of Dies (SMED), slogans, 424
224-225
SMART (Specific, Measurable, Attainable,
single suppliers, 414-415 Relevant, and Time Bound), 290
SIPOC (Supplier-Input-Process-Output- SMED (Single Minute Exchange of Dies),
Customer) analysis, 149 224-225
case study, 299
Smith, Bill, 253
creating, 172-173
soft benefits, 281-282
defined, 149
example, 149-151 sorting, 222, 417
456 Index
SOX (Sarbanes Oxley Act), 237 substitution, 188
special variation, 6-8, 90 succession planning
explained, 25-26 creating talent pools model, 400
Funnel Experiment, 27-29 explained, 399
Red Bead Experiment, 30-31 incumbent model, 399-400
specification limits, 31 process oriented top-down/bottom-up
spic and span, 222, 417 model, 401-403
stability in planning, 13-14 top-down/bottom-up model, 400-401
stable processes, 8-9 suggestions
customer feedback, 237
standard deviation, 68-69, 266, 341
employee feedback, 234-235
standard flowchart symbols, 43-44
Supplier-Input-Process-Output-Customer
standardization, 195, 222, 417 analysis. See SIPOC (Supplier-Input-Process-
case study, 386-387 Output-Customer) analysis
explained, 379-380 suppliers
improvements identifying, 285
case study, 386-387 single suppliers, 414-415
explained, 379-380
surveys
Standardize-Do-Study-Act (SDSA) cycle, customer surveys, 236
203-204, 416-417
employee surveys, 234
Standardize phase (SDSA cycle), 203
symbols (flowchart), 43-44
start/stop symbol, 43
symmetrical distribution, 66
statistical analysis, 341
synchronization, 189
central tendency
system, appreciation of, 411
mean, 59
median, 60 systematization, 222, 417
mode, 60-61 system of independent components, 401
proportion, 61-62 system of interrelated components, 401
Minitab, 70 System of Profound Knowledge
bar charts, 74-76 appreciation of a system, 411
descriptive statistics, 85-87 14 Points, 413-430
dot plots, 82-83 adopting new philosophy, 413
histograms, 79-82 breaking down barriers between depart-
line graphs, 78-79 ments, 423-424
Pareto diagrams, 76-77 ceasing dependence on mass inspection,
run charts, 84-85 413-414
worksheets, 70-74 creating constancy of purpose, 413
shape (skewness), 66-68 driving out fear, 423
variation eliminating arbitrary goals, posters, and
range, 62-63 slogans, 424
standard deviation, 63-69 eliminating management by objective,
425-426
variance, 63-66
eliminating work standards (quotas),
strategic/tactical plans, 232 424-425
Study phase (PDSA cycle), 207 encouraging education and
Study phase (SDSA cycle), 203 self-improvement, 430
subgroups, 7
Index 457
ending practice of awarding business on theory of variation, 412
basis of price, 414-415 three-sigma limits, 93
improving constantly the system of pro- time management, 194-195
duction and service, 415-421
time series plot, 78. See also line graphs
instituting leadership, 422-423
Time Series Plot: Simple dialog box
reduction of variation and, 430-433
(Minitab), 79
removing barriers to pride of workman-
ship, 426-429 time to complete project, estimating, 245-246
taking action to accomplish transforma- time value, 3
tion, 430 TLF (Taguchi Loss Function), 32-33
training on the job, 421-422 tollgate reviews
overview, 409-410 Analyze phase
paradigms, 410-411 case study, 354-355
psychology, 412-413 explained, 342-343
purpose, 410 Control phase
quality in service, government, and educa- case study, 390-391
tion, 434 explained, 384-385
quotations from W. Edwards Deming, Define phase, 290-291, 308-309
434-435 Improve phase
theory of knowledge, 412 case study, 373
theory of variation, 412 explained, 365
transformation, 433-434 Measure phase, 323-324, 330
top-down/bottom-up model of succession
planning, 400-401
T TPM (Total Productive Maintenance),
tactical plans, 232 223-224
Taguchi Loss Function (TLF), 32-33 tracking projects, 250-251
talent pool model of succession planning, 400 training, 192, 224, 421-422
tampering, 195 transformation, 430, 433-434
tangible costs, 242, 281 type one errors, 92
targets, changing, 188 type two errors, 92
technical definition of Six Sigma, 253, 266-272
normal distribution, 266
relationship between VoP and VoC, 266-271 U
testing U Chart dialog box (Minitab), 135
pilot tests, 362-364 u charts, 106-108
case study, 369-372 creating in Minitab, 134-136
communication plans, 362 example, 107-108
data analysis, 362-364 explained, 106
employee training, 362 when to use, 107
pilot test charter, 362-363 UCL (upper control limit), 7, 92
test of theories to determine critical Xs, units, 261, 289, 322
340-342, 348-353 unit-to-unit variation, 5-6
theory of knowledge, 412 unstable processes, 8-9
theory of management. See System of Pro- unwanted variation, 6
found Knowledge
USL (upper specification limit), 31
458 Index
measures of
V range, 62-63
validating standard deviation, 63-66, 68-69
measurement system for CTQs variance, 63-66
case study, 326-327 Minitab, 131
explained, 313-317 c charts, 134
measurement system for Xs I-MR (Individuals and Moving Range)
case, 348 charts, 136-137
explained, 340 p charts, 131-133
value engineering, 188 u charts, 134-136
values X Bar and R charts, 137-139
form value, 4 X Bar and S charts, 139-142
nominal value, 31 zone limits, plotting, 131
place value, 3 Red Bead Experiment, 30-31
time value, 3 reducing, 430-433
value streams, 226-227 special variation, 6-8, 25-26, 90
variability, reducing, 406 theory of variation (Deming), 412
variables, 47 variation management, 195-196
variables control charts, 91 Verify/Validate phase (DMADV cycle), 219
variables data, 49-50 VoC (Voice of the Customer) analysis,
variation 286-288
common variation, 6-8, 25-26, 89 case study, 168-172, 299-308
control charts data collection, 167, 287
attribute control charts, 90 data interpretation, 167, 288
case study (defective surgical screws), defined, 146
119-125 interviews, 235-236
c charts, 104-106, 134 market segmentation, 166-167, 287
choosing, 119 planning, 167, 287
control limits, 93 purpose of, 149
explained, 90 Six Sigma, 266-271
I-MR (Individuals and Moving Range) VoE (Voice of the Employee) interviews,
charts, 109-112, 136-137 232-233
p charts, 98-104, 131-133 VoP (Voice of the Process), 266-271
rules for determining out of control points,
93-98
three-sigma limits, 93 W
type one errors, 92 wait time, reducing, 195
type two errors, 92
waste
u charts, 134-136
eliminating, 187-188
variables control charts, 91
in processes, 11
X Bar and R charts, 112-115, 137-139
Welch, Jack, 253
X Bar and S charts, 115-119, 139-142
defined, 5-6, 24-25, 89 work environment, changing, 191-192
Funnel Experiment, 27-29 work flow, improving, 188-190
importance of, 25 worksheets (Minitab)
measurement systems analysis, 126-131 bar charts, 74-76
descriptive statistics, 85-87
Index 459
dot plots, 82-83
explained, 70-71
histograms, 79-82
line graphs, 78-79
opening, 71-74
Pareto diagrams, 76-77
run charts, 84-85
saving, 71-74
work standards (quotas), 424-425
X
X Bar and R charts, 112-115, 137-139
X Bar and S charts, 115-119, 139-142
Xbar-R Chart dialog box (Minitab), 138-140
Xbar-S Chart dialog box (Minitab), 141
Xs
data collection plan, 339-340
defined, 333
hypotheses about relationship between criti-
cal Xs and CTQs, 354
identification of potential Xs, 308, 335-338
operational definitions, 346-348
340-342, 348-353
Y-Z
yield, 262
zone limits, plotting, 131

ZQC (Zero Quality Control), 225
460 Index

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A Guide to Six

Sigma and Process

Section I Building a Foundation of Process Improvement

Chapter 2 Process and Quality Fundamentals . . . . . . . . . . . . . . . . . . . . . . . . . .17

Section II Creating Your Toolbox for Process Improvement

Chapter 5 Understanding Variation: Tools and Methods . . . . . . . . . . . . . . . .89

Chapter 6 Non-Quantitative Techniques: Tools and Methods . . . . . . . . . . .145

Chapter 7 Overview of Process Improvement Methodologies. . . . . . . . . . . .203

Chapter 8 Project Identification and Prioritization:

Chapter 10 DMAIC Model: D Is for Define. . . . . . . . . . . . . . . . . . . . . . . . . . .273

Chapter 11 DMAIC Model: M Is for Measure . . . . . . . . . . . . . . . . . . . . . . . . .311

Chapter 12 DMAIC Model: A Is for Analyze. . . . . . . . . . . . . . . . . . . . . . . . . .333

Chapter 13 DMAIC Model: I Is for Improve. . . . . . . . . . . . . . . . . . . . . . . . . .357

Chapter 14 DMAIC Model: C Is for Control . . . . . . . . . . . . . . . . . . . . . . . . . .375

Section V Six Sigma Certification

ACCESS TO DATA FILES AND CHAPTERS 17 AND 18

About the Authors xix

xx About the Authors

What Is the Objective of This Chapter?

Nine Principles of Process Improvement to Get the Most

Inputs Process Outputs

Figure 1.1 Basic process

An example of a personal process is Ralphs relationship with women he dates process.

Use an edating service, Start dating a woman. Get depressed over

Figure 1.2 Ralphs relationship with women process

Time Series Plot of Number of Breakups

Figure 1.3 Number of breakups by year

Actual vs. Ideal Weights by Day

Figure 1.4 Actual versus ideal weights by day

C Chart of Number of Breakups

Figure 1.5 Number of breakups with women by year

C Chart of Number of Breakups with Women by Before and After

1982 1985 1988 1991 1994 1997 2000 2003 2006

Principle 5: Continuous improvement is always economical, absent capital investment.

Table 1.2 Loss from Minutes Early or Late

Table 1.3 Improved Loss from Minutes Early or Late

Structure of the Book

Richard J. Melnyck, MBA, MS in MAS, and MAS in CIS

David M. Levine, PhD

zone limits, plotting, 131

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