Six Sigma

Six Sigma Overview
Objectives
To know what Six Sigma means
To be able to explain the meaning of Six Sigma as

a measure of a products ability to meet customer
requirements
To be able to explain the meaning of Six Sigma as

a change initiative in a business
Comprehend Business Objectives/Priorities.

Objectives for this session
To gain a high-level understanding of Six Sigma and the

EMC approach to Six Sigma
To walk out with an understanding of what is required to write

a good project definition to assist your candidates to have a
clearly defined project before attending Week 1 training.
To ensure a common understanding of basic tools and

concepts used in Six Sigma training
To clarify what is expected from you as champions and

management to foster this cultural change in using these
tools in our day to day business.
Does Your Company Need Six Sigma?

Does Your Company
Believe zero-defect goals are neither realistic nor achievable?
Have 10 times the number of suppliers required to run the

business?
Have 5 to 10% of its clients dissatisfied with the product, the

sales organization, or the service youve provided?
Have customers who will not recommend that others purchase

your goods or services?
Quantify profitability and growth?
Deliver new products to the market?

(continued)

-cont.
Does Your Company
Continually implement price reductions for current

products?
Have an increasing number of competitors?
Spend a high % of sales dollars on repairing or

reworking a product before it ships?

-cont.
Does Your Company -
Have a magician in your
organization?
Six Sigma Objectives
The Vision: Drive industries to design and produce

products/services to Six Sigma standards
The Goal: Produce goods and services at a Six Sigma level.

As your organization moves toward Six Sigma quality, you will:
Eliminate defects
Reduce production and development costs
Reduce cycle times and inventory levels
Increase profit margin
Improve customer satisfaction
The Strategy: Use a data-driven structured approach to attack

defects to improve the sigma level of your goods and services
What Is Six Sigma?

Please grade your organization based on the following:
F
Our organization uses only tribal knowledge.

We do not use data.
Our organization collects data simply to say, We collect data.
Our organization collects data and we sometimes look at the

numbers.
Our organization logically groups the data. We form charts.
Our organization uses sample data along with basic statistics.
Our organization uses sample data along with inferential

statistics.
A+ Our organization quantifies processes via prediction equations.

Our Grade: _____________
What Is Six Sigma?

A Vision of a Six Sigma Company
Organizational Issue
Traditional Approach
Six Sigma Approach
Problem resolution
Fixing (symptoms)
Preventing (causes)
Behavior
Reactive
Proactive
Decision making
Experience-based
Data-based
Process adjustment
Tweaking
Controlling
Supplier selection
Cost (piece price)
Capability
Planning
Short-term
Long-term
Design
Performance
Producibility
Employee training
If time permits
Mandated
Chain-of-command
Hierarchy
Empowered teams
Direction
Seat-of-pants
Manpower
Cost
Benchmarking and metrics

Asset
What Is Six Sigma?

Sigma level: The business metric
used to indicate the performance

of a process to some specification
The number of standard

deviations that fit between the
mean and the nearest
specification limit
LSL
USL
OR
A measure of the number of

defects per opportunity produced
by a process
What Is Six Sigma?
Is 99% yield good enough?
Five lost e-mail messages per month
No cable television for 3.5 hours each month
15,000 overnight carrier packages lost per week
25 incorrect car rental reservations per company

per day
Todays Standard
3 Capability
Automotive Standard
4 Capability
Six Sigma Standard

6 Capability
93.319 %
99.379 %
99.99966 %
Long-Term Yield
10
Sigma level compared to defects

Short-term distribution shifted by
1.5to obtain long-term PPM
Defects per Million Opportunities
Note: Industry standard has

defined a sigma level to imply
short term.
Sigma
Level
1
2
3
4
5
6
800000
700000
600000
500000
400000
300000
Short-Term Long-Term
PPM
PPM
158655.3
691462.5
22750.1
308537.5
1350.0
66807.2
31.7
6209.7
0.3
232.7
0.0
3.4
200000
Short-Term PPM
100000
0
Long-Term PPM
Short-Term PPM
158655.3
22750.1
1350.0
31.7
0.3
0.0
Long-Term PPM
691462.5
308537.5
66807.2
6209.7
232.7
3.4
Sigma Level
11
Benchmarking Standards
1
10
80
100
150
300
1,200
3,000
150,000
3 Sigma
93.319%
50.086%
0.396%
0.099%
0.003%
0.000%
0.000%
0.000%
0.000%
4 Sigma
99.379%
93.961%
60.755%
53.638%
39.284%
15.432%
0.057%
0.000%
0.000%
5 Sigma
99.977%
99.768%
98.156%
97.700%
96.570%
93.257%
75.636%
49.753%
0.000%
(Distribution
Shifted 1.5)
6 Sigma
100.000%
99.997%
99.973%
99.966%
99.949%
99.898%
99.593%
98.985%
60.042%
Rolled Throughput
Yield (RTY)
Product Complexity
(# of Opportunities)
Process Capability (Sigma Level)
4 toothpick manufacturer (assume one opportunity for a defect): Has an RTY of 0.99379 (1) = 99.379%
4 mechanical pencil manufacturer (assume 10 opportunities for a defect): Has an RTY of 0.99379 (10) = 93.961%
12
Six Sigma Overview
What Is Cost of Poor Quality (COPQ)?
The cost of finding and fixing defects
Failing to meet customer expectations the first time
A missed opportunity for increased efficiency
The potential for higher profits
Loss in market share
Increase in cycle time
Labor associated with ordering replacement

material
Costs associated with disposing of defects

13
Six Sigma Overview

Traditional Metrics
Equipment Util. vs. COPQ
$130,000
$120,000
$120,000
$110,000
$110,000
COPQ
COPQ
$130,000
$100,000
$90,000
$100,000
$90,000
$80,000
$80,000
$70,000
$70,000
$60,000
$60,000
0.825 0.85 0.875 0.9
0.925 0.95 0.975
Equipment Utilization
Test Yield vs. COPQ
80.0%
82.5%
85.0%
87.5%
90.0% 92.5%
Test Yield
14
Six Sigma Overview

Six Sigma Metrics
Cycle Time vs. COPQ
$450,000
$450,000
$375,000
$375,000
$300,000
$300,000
COPQ
COPQ
Sigma Level vs. COPQ
$225,000
$225,000
$150,000
$150,000
$75,000
$75,000
$-
$1.00
1.75
2.50
3.25
4.00
Sigma Level
4.75
5.50
0.00
30.00
60.00
90.00
120.00
Cycle Time (Minutes)
15
Six Sigma Overview
For an average company,

the COPQ can be as high as
25%
of total sales!
16
17
Six Sigma Overview
What Is Cost of Poor Quality (COPQ)?
The cost of finding and fixing defects
Failing to meet customer expectations the first time
A missed opportunity for increased efficiency
The potential for higher profits
Loss in market share
Increase in cycle time
Labor associated with ordering replacement

material
Costs associated with disposing of defects

18
19
Six Sigma Overview

Indicators of COPQ
Low Yield Rate

High Customer Failure Rate
(PPM)
Incoming Product Quality
Problems
Unpredictable Quality
Poor Process Capability (Cp, Cpk)
Measured System Error
High Past Due to Customer
High Maintenance Costs
Low Machine Utilization
Process Downtime
High Operating Costs
High Scrap/Rework Costs
High Inventories (WIP)
Long Cycle Times
Unpredictable Product
Performance
Capacity Constrained
High Product Volume
Internal Perceived Poor Quality
External Perceived Poor Quality
20
Six Sigma Overview

Indicators of COPQ
Low Yield Rate

High Customer Failure Rate
(PPM)
Incoming Product Quality
Problems
Unpredictable Quality
Poor Process Capability (Cp, Cpk)
Measured System Error
High Past Due to Customer
High Maintenance Costs
Low Machine Utilization
Process Downtime
High Operating Costs
High Scrap/Rework Costs
High Inventories (WIP)
Long Cycle Times
Unpredictable Product
Performance
Capacity Constrained
High Product Volume
Internal Perceived Poor Quality
External Perceived Poor
Quality
21
EMC Six Sigma Approach

Objectives
To know the EMC approach to deploying Six Sigma
To know the components and importance of the

implementation strategy
To know the components and importance of the

application strategy
22
Implementation
Strategy
Strategic
Infrastructure
Tactical
Infrastructure
Operational
Infrastructure
Application
Strategy
Measure
Analyze
Improve
Control
23
EMC Implementation Strategy
Traditional Quality program implementation
Need for quality improvement is recognized.
Top management buys in to quality improvement.
Implementation responsibility is turned over to the

Quality VP or leader.
The CEO makes a statement of support and

expectations.
All employees are trained in basic quality tools.
Improvement is expected.
24

STRATEGIC LEVEL
Organizational Leadership
Executives
Six Sigma Deployment Plan

Executive Steering Committee
Master Black Belts
TACTICAL LEVEL
Tactical Management
Operational Managers
Support Managers
Six Sigma Project Teams

Champions
Black Belts
Team Members
Stakeholders
OPERATIONAL LEVEL
Operational Work
Operators
Support Staff
Six Sigma Institutionalization

Green Belts
Yellow Belts
Complements The Established Infrastructure;

It Does Not Replace It!
25

Strategic Level
Steering committee
Defines Six Sigma Initiative objectives
Identifies and defines initial Six Sigma application

projects
Business analysis based on strategic objectives

Analysis/revision of existing business performance metrics
Establishes targets for deployment throughout the organization
Assigns Champions
Assigns Black Belts/Green Belts
Reviews Six Sigma projects

Reviews and revises strategic objectives and business
performance metrics
Champion Training Aligns Strategic Decisions

With Six Sigma Methodology.
26

Champion Roles and Responsibilities
Roles:
Is responsible for coordination of the business roadmap to achieve 6
Selects projects, controls execution, and alleviates roadblocks for the 6

projects in his area of responsibility
Reporting Lines:
Is part of the functional organization and reports directly to the 6 leader
Is a member of the organizations 6 leadership team

Responsibilities:
Selects projects, controls execution, and implements and realizes gains

(bottom line linkage)
Owns the execution portion of Black Belt/Green Belt certification
Obtains the needed project resources and eliminates roadblocks
Drives the cross-functional coordination of projects
Participates in all project reviews
Owns the Black Belt/Green Belt selection
Is the boss of the Black Belt/Green Belt (direct or dotted line)
Provides reward and recognition

Time Commitment:
Two days/week per 10 projects managed (20% to 80% based on

organization)
27

Master Black Belt Roles and Responsibilities
Roles:
Is a mentor, trainer, and coach of Black Belts and others in the

organization
Brings broad organization up to the required 6 competency level.

Reporting Lines:
Is generally a central resource; is cross functional.
Is a member of the 6 leadership team and the steering committee

Responsibilities:
Mentors and coaches Black Belts
Develops and conducts several forms of training
Owns the 6 technical development roadmap
Provides higher education of Black belts and Master Black Belts
Brings the entire organization to the 6 level of competency
Is the custodian of the purity of the method no compromising
Transfers lessons learned
Owns knowledge certification of Black Belts
Finds outside expertise/help when required
Networks with other 6 organizations

Time Commitment:
Must be 100% dedicated
28

Team Member Roles and Responsibilities
Roles:
Participates on the project teams and supports the goals of the project,
typically in the context of his existing responsibilities
Responsibilities:
Performs his normal job and supports the activity of the project as it relates
to that particular job
Learns the 6 methodology as it applies to the particular project
Continues to learn and practice the 6 methodology and tools after project
completion. Some may evolve to the Black Belt level of knowledge and
practice.
Time Commitment:
Is defined by the Six Sigma Belt, Champion, and Functional Manager
May be instructed to support any Six Sigma project as a high priority

Minimum Training Requirement:
Four-hour overview
Additional training from a Six Sigma Belt
29

Stakeholder Roles and Responsibilities
Roles:
Agrees with the project selection and expected results
Supports the Black Belt/Green Belt in the organization and takes the
necessary actions to realize the gains
Responsibilities:
Approves the potential savings from the project (pre R0)
Participates in the project identification and selection process
Owns the development and implementation of actions to realize the

savings
Provides team resources
Ensures that 6 training is implemented in the organization
Participates in 6 reviews
Time Commitment:
As needed
Min. Training Requirement:
Four-hour overview
30
Implementation
Strategy
Strategic
Infrastructure
Tactical
Infrastructure
Operational
Infrastructure
Application
Strategy
Measure
Analyze
Improve
Control
31
EMC Application Strategy

What Tool(s) Do You Need for Your Project?
6
Tools:
Tools:
Design for manufacturability

Design for Six Sigma, 6 tolerancing, product scorecard
Process characterization (mapping, MSA, etc)
Process optimization (DOE, etc)
Tools:
Seven basic tools

(paretos, fishbones, check sheets, histogram, flowcharts,
brainstorming, control charts)
Tools:
Common sense
Tribal knowledge
1 to 2
32

Black Belt/Green Belt Certification
Attend all weeks of classroom training
Complete a Six Sigma project successfully
Demonstrate knowledge and apply tools
Achieve the project objectives
Shows financially measurable impact
Complete the measure phase of a second project

(Black Belts only)
33

Measure
Define project scope

Validate measurement systems
Establish initial capability for Ys
Process exploration of all potential Xs
Characterize the response and analyze the raw data
Analyze
Improve
Control
Bimodal? Skewed? Is the problem with m or s2?

Use graphical analysis, multi-vari, hypothesis testing,
and basic statistical tools to identify the likely families
of variability
Identify the likely Xs

Use the design of experiments to find
the critical few Xs

Move the distribution (shift m)
Shrink the spread (decrease s2)
Confirm the results
Mistake-proof the process

Tolerance the process
Measure the final capability
Place appropriate process controls on the critical Xs
Document the effort and results
34

Project Reviews
Each phase has a list of potential project application tools.

Use these tools to move your project forward.
If the tool is not appropriate, please make sure you clearly

understand and can demonstrate its usage.
We are here to help you with both the application and the
underlying concept.
Local and Corporate Project Reviews
Present only the tools that are pertinent or of interest to the audience
during your reports.
Your presentation should take no longer than 15 minutes.
Please allow 10 minutes for the presentation itself and five minutes for a
brief question/answer session.
Your presentation should consist of approximately 8 to 10 slides.
35

Phase 1: Product Measurement
Part
YTP
Operation
Process Capability Analysis for C1
Gage name:
Date of study :
Reported by :
Toleranc e:
Mis c:
Gage R&R (ANOVA) for Measure
Upper Spec
S a m p le R an g e
S a m p le M ea n
Lower Spec
Y1, , YN
Verify
X b ar C ha rt b y Op era tor
1.1
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
Op e ra tor* P a rt In tera c ti o n
3
3.0SL=0.8796
X=0.8075
-3.0SL=0.7354
3.0SL=0.1252
0.10
0.05
10
11
12
13
14
R=0.03833
1
2
3
O p e r ID
0.47
Targ
9.8997
%>USL Exp
15.11
PPM>USL Exp
151108
CPU
0.34
USL
11.000
Mean
Mean+3s
13.0992
Obs
14.00
Obs
140000
CPL
0.59
LSL
8.000
Mean-3s
6.7001
%<LSL Exp
3.74
PPM<LSL Exp
37442
Cpk
0.34
0.266
1.0665
Obs
2.00
Obs
20000
100.000
P e rc e n t
Cp
100
90
80
70
60
50
40
30
20
10
0
Repeat
Reprod
Part-to-Part
10
B y P art
%Total Var
%Study Var
Gage R&R
B y Op e ra tor
1.1
1.0
0.9
0.8
0.7
0.6
0.5
0.4
Co m p o n en ts of V ari a tio n
Short-Term Capability
Cpm
-3.0SL=0.000
0
O p e ra t o r
1.1
1.0
0.9
0.8
0.7
0.6
0.5
0.4
P a rt I D
R Ch art by Op e ra to r
0.15
0.00
A v e ra g e
X1, , XN
1.1
1.0
0.9
0.8
0.7
0.6
0.5
0.4
P a rt I D
10
36
Session 1, Application Tools

Project Selection
*Problem statement and project status
*Project assessment chart (Metric.doc)
Process Exploration
Process flow diagram
XY matrix, PFMEA, fishbones
Data collection system
Measurement System(s) Analysis (MSA)
Attribute/Variable gauge studies
Capability Assessment (on each Y)
Capability (Cpk, level, DPU, RTY)
Graphical tools (histograms, )
Progress Summary
*Conclusion(s)
*Issues and barriers
*Next steps
Completed Local Project Review
* Note: Required reports
Regardless
Regardlessofofthe
thetools
toolsused,
used,you
youshould
shouldaddress
address
each
of
these
questions
during
your
Session
each of these questions during your Session11
Review:
Review:
1)1)What
Whatisisyour
yourpractical
practicalproblem
problemstatement
statement
what
whatare
areyou
youtrying
tryingtotofix
fixororavoid?
avoid?
2)2)What
Whatisisthe
thebusiness
businessimpact?
impact?
3)3)Who
Whoisisthe
thecustomer
customer(internal/external)?
(internal/external)?
4)4)What
Whatare
arethe
theYs?
Ys?
How did you determine them?
How did you determine them?
How are you measuring them?
How are you measuring them?
How good is the measurement system?
How good is the measurement system?
Have you done a Gage R&R?
Have you done a Gage R&R?
5)5)Does
Doesthis
thisproject
projecthave
haveapplications
applicationsininother
other
areas?
(tree
of
opportunity)
areas? (tree of opportunity)
6)6)IsIsthis
thisaatechnology
technologyororcontrol
controlproblem?
problem?
7)7)Did
Didyou
youdevelop
developaaprocess
processflow
flowchart?
chart?
8)8)Do
Doyou
youhave
haveadequate
adequateresources
resourcestoto
complete
completethe
theproject?
project?
37

Phase 2: Product Performance Analysis
Capability Analysis
Report 2: Process Capability for C5
Xbar and S Chart
600
Capability Indices
550
UCL=557.2
500
X=498.7
450
LCL=440.2
400
Subgroup0
10
15
20
90
80
70
60
50
40
30
20
10
0
UCL=85.58
S=40.96
LCL=0.000
Potential (ST) Capability

I
I
630.741
I
I
350
498.683
StDev
43.444
63.802
Z.USL
3.453
2.372
Z.LSL
3.453
2.330
Z.Bench
3.261
2.080
Z.Shift
1.181
1.181
P.USL
0.0003
0.0089
0.0099
P.LSL
0.0003
P.Total
0.0006
0.0187
Yield
99.9445
98.1253
18747
PPM
555
Cp
1.15
Process Tolerance
Cpk
1.14
306.793
I
650
Specifications
LT
500.000
Actual (LT) Capability
Process Tolerance
369.259
ST
Mean
690.572
I
Pp
0.78
Ppk
0.77
Xs
X2
350
650
Specifications
Data Source:
Time Span:
Data Trace:
Box Plot Analysis

0.06
0.05
Impurity
0.04
l
Al
0.03
0.02
0.01
0.00
1
Piece
e
bl
i
ss X1
o
P
X3
X5
X6
X4
Xs
le
b
ba
X1
o
r
P
X5
38
Project Status
*Problem statement and project status
*Project assessment chart (Metric.doc)
Process Capability Analysis
Distribution assessment
Data transformations
Capability analysis
Graphical Analysis (X Search)
Boxplots/scatterplots/other graphs
Identification of high-priority Xs
Capability (Cpk, s level, DPU, RTY)
Graphical tools (histograms, m, s)
Progress Summary
*Conclusion(s)
*Next steps
Regardless
Regardlessofofthe
thetools
toolsused,
used,you
youshould
shouldaddress
address
each
eachofofthese
thesequestions
questionsduring
duringyour
yourSession
Session22
Review:
Review:
1)1)What
Whatisisthe
thestatement
statementofofthe
thestatistical
statistical
problem?
problem?
2)2)IsIsthe
theresponse
responsediscrete
discreteororcontinuous?
continuous?
What does the distribution look like?

What does the distribution look like?
Has this helped you reduce the potential Xs?
Has this helped you reduce the potential Xs?
3)3)How
Howmuch
muchofofthe
theproblem,
problem,as
asdescribed
describedininthe
the
measure
phase,
are
you
going
after?
measure phase, are you going after?
4)4)Have
Haveyou
youreduced
reducedthe
thelikely
likelyXs
Xstotoaanumber
number
that
can
be
experimented
with?
that can be experimented with?
5)5)What
Whatare
areyour
yournext
nextsteps?
steps?
6)6)Do
Doyou
youhave
haveadequate
adequateresources
resourcestotocomplete
complete
the
project?
the project?
*Note: Required reports
39

Phase 3: Performance Improvement
Design of Experiments
Run Factor A
No. Feed Rate
Main Effects for Response

Centerpoint
-1
-1
230
200
185
.015IPR
RAPID
.015IPR
RAPID
.015IPR
RAPID
.015IPR
RAPID
Factor C
Location
RIGHT
RIGHT
LEFT
LEFT
RIGHT
RIGHT
LEFT
LEFT
HEADSTOCK
HEADSTOCK
HEADSTOCK
HEADSTOCK
TAILSTOCK
TAILSTOCK
TAILSTOCK
TAILSTOCK
Response 1
Location
170
A
Interation Plot for Response
A
235
-1
1
-1
1
225
215
240
Mean
205
220
200
2
180
160
E
r
to
140
22
18
Factor
G
14
Fa
c
RESPONSE
Response
215
1
2
3
4
5
6
7
8
Factor B
Direction
Centerpoint
195
185
175
165
155
145
-1
40

Project Selection See ProjPlan.xls
Problem statement & project status

Project assessment chart (Metric.doc)
Remaining Session 1 and 2

Deliverables
Design of Experiments
DOE planning sheet

DOE factorial experiments
Y = F (X1, X2, X3, )
Updated PFMEA
Progress Summary
*Conclusion(s)
*Next steps

* Note: Required reports
Regardless of the tools used, you

should address each of these
questions during your Session 3
Review:
1) Were all the potential Xs measurable
and controllable for an experiment?
2) Are the vital few Xs statistically
significant?
3) Are the effects of practical
significance?
4) How much of the problem have you
explained with these Xs?
5) How much unexplained error exists?
6) Are any new improvements
transferable across the business?
7) Is an action plan for spreading the
best practice in place and
appropriate?
8) Do you have adequate resources to
complete the project?
9) What are the next steps?
41

Phase 4: Process Control
Cause System
Cause
Effect
Eliminate Xs
10
9
Automate Xs
Control Xs
6s Spec
Range of Y
8
7
6
5
i 1
(X i ) 2
N
Statistics
-1
MHz
High Spec
Low Spec
Standards
Realistic Tolerance on X
EWMA Chart for Length

E W M A C h a r t f o r L e n g th
6 0 1.5
U C L = 6 0 1.2
U C L = 6 0 1.2
6 0 0 .5
EWMA
X = 6 0 0 .1
X = 6 0 0 .1
5 9 9 .5
L C L = 5 9 8 .9
L C L = 5 9 8 .9
5 9 8 .5
0
50
10 0
Sample Number
42
Final project update: Before BB/GB can be

certified, they are required to submit in compressed
electronic format:
A final report
A copy of all presentations
All application tools used throughout the project
Supporting data files used throughout the project
Complete a local management review at their

facility before the corporate review.
43
Basic Concepts
Objectives
To understand the fundamental equation that drives

Six Sigma
To know how the difference between First Time

Yield (FTY) and Rolled Throughput Yield (RTY) in
measuring process performance
To know the DPU Concept and how is related to

RTY.
44
Fundamental Equation
The Fundamental Equation That Drives Six Sigma
Y = f(x)
The Output Is A Function Of The Inputs And The Process.
45
The Fundamental Equation
Y= f(x)
What is Y?
Output
Dependent
Effect
Symptom
Monitor
What are X . . . X ?
1
Input process
variables
Independent
Cause
Problem
Control
46
Output Variation Y = f(x)
Sources of Variability
Design
Incoming Parts
and Materials
Process
Capability
Process
characterization and
optimization
Process
characterization and
optimization
Process
characterization
and optimization
Design for
manufacturability
Logic and intuition
Logic and intuition
Seven basic tools

(paretos,
fishbones, maps,
etc.)
Seven basic tools

Design for Six Sigma
(paretos, fishbones,
maps, etc.)
47
Six Sigma Metrics

Individual
Product
Parts per
million,
ppm
Z-score or
sigma
value
Rolled
throughput
yield,
RTY
Yield
Defects per
unit,
DPU
Defects per
million
opportunities,
DPMO
Process
capability
Cp,Cpk,
Pp,Ppk
48
Understanding Yield
First Time Yield (FTY) is a common output metric
(Y metric) used to identify and target problem areas.
First Time (End of Line) Yield by Week

FTY =
100
* 100%
Where:
FTY = First Time Yield
(test yield)
P=
Number of units
that pass the test
U=
Number of units
tested
98
96
94
92
Wk 15
Wk 14
Wk 13
Wk 12
Wk 11
Wk 10
Wk 9
Wk 8
Wk 7
Wk 6
Wk 5
Wk 4
Wk 3
Wk 2
90
Wk 1
Weekly Yield (%)
P
U
49
Understanding Yield
FTY is not a good predictor for improving profits

and/or decreasing scrap.
Expected Relationships
9
25
8
7
Scrap
Profit
20
15
10
6
5
4
3
2
1
0
0
80
90
Test Yield
100
80
90
100
Test Yield
50
Understanding Yield
Hidden costs in the Real Factory
More manpower
Extra floor space
Longer cycle time
More raw material
More $$$$
Good
Units
_______
Total units tested
FTY
Test
Operation 1
Test
Operation 2
Test
Product
51
Understanding Yield
Hidden costs in the Real Factory
More manpower
Extra floor space
Longer cycle time
More raw material
More $$$$
Operation 1
Good
Units
_______
Hidden
Factory
Total units tested
Re-Work
or Scrap
Re-Work
or Scrap
Failure
Analysis
Failure
Analysis
Test
Operation 2
Test
FTY
Test
Product
52
Defects vs. Defectives
Defects:
Countable failures associated with a single unit.

A single unit can be found to be defective, but it may have
more than one defect.
Defectives:
Completed units that are classified as bad. The whole unit is

said to be defective regardless of the number of defects it has.
First time yield =

non-defectives / total units.
53
Defects per Unit (DPU)
Unit: The entity that is transformed by value-added

activities. Typically, it is defined as the product
that is sold to the customer.
Defects
DPU
Units Produced
DPU can be applied at both the individual processstep level and the product level.
54
Example of DPU
At the part level:
Pedal assemblies arrive at our plant weekly to support

production needs. The following defect data is collected on a
sample basis. It was collected over the previous 12- month
period for 500 total samples (n = 500).
Reflector missing
25
Threads marred
15
Pedal bent
10
Total
50
The average number of defects per unit (pedal) is:
Total Defects
50
DPU
0.1
Units
500
(continued)
55
Example of DPU
-cont.
At the product level:
DPUs of sub-assemblies can be summed to obtain the total

number of defects found in the finished unit.
n
DPUtotal DPUsubassembly ( i )
i 1
Here are defect rates for four sub-assemblies that make up

the final product:
0.10
DPU
0.15
DPU
0.05
DPU
0.10
DPU
Product
0.40
DPU
56
Rolled Throughput Yield (RTY)
RTY: Measuring the probability of obtaining

a defect-free unit, instead of first time yield.
Two calculations:
RTY Yield process a Yield process b Yield process n

or converting from DPU
RTY e DPU
The second method is derived from a Poisson

distribution model. It is a valid approximation for
defect rates of 10% or lower. It shows there is a
relationship between DPU and RTY.
57
Rolled Throughput Yield Example

The pedal sub-assembly process is outlined below. We
have identified the DPU associated with each process
step.
Select R
and L part
#s from bin
location
DPU = 0.02
Process Step
Select Part
Hand Tighten L
Hand Tighten R
Torque L
Torque R
Total
Handtighten L
pedal
Handtighten R
pedal
Torque L
pedal to 5 ft
lbs
Torque R
pedal to 5 ft
lbs
DPU = 0.01
DPU = 0.01
DPU = 0.03
DPU = 0.03
DPU Step Yield

0.02
98%
0.01
99%
0.01
99%
0.03
97%
0.03
97%
0.10
RTY e dpu e 0.1 90% ***

or
RTY 0.98 0.99 0.99 0.97 0.97
90%
*** Good for DPU < 0.1 , otherwise use product of step yields
58
Understanding First Time Yield and RTY
Rolled Throughput Yield (RTY) is a measure that is

based on defects that occur throughout the
process.
Process RTY: Yield prior to
Capability inspection and test
Operation:
DPU = 1
RTY = 37%
based on
defects
Re-Work
Defects
Scrap Defects
Outgoing
Quality
Verify:
9/10 Good
Bad
Good
FTY: Yield after

inspection and test
FTY = 90%
based on non-defectives
Probability of a defect free unit (RTY)

as a function of DPUs.
DPU
1
.5
.1
.01
Probability %
37
60
90
99
59
Defects per Million Opportunities

(DPMO)
It is sometimes helpful to compare products, parts, and

processes of differing complexities. We would expect
products/processes of higher complexity to have a lower RTY
(and sigma value).
RTY Yield process a Yield process b Yield process n

RTY e
DPUtotal
DPUprocess ( i )
i 1
The higher n (the complexity) is, the lower the RTY.
DPMO is for Benchmarking and project selection and DPU

for Six Sigma Project Metric.
60
The Calculation
To compare products/processes of differing complexity, we

must start with a measure of complexity. We call this
measure an opportunity.
Opportunities can be defined as the number of parts in the

product, or the number of process steps needed to assemble
a product. Both would be indicators of overall
product/process complexity.
Other definitions of opportunity can be applied as long as

the measure of complexity is used uniformly.
Total Defects
DPMO
1,000,000
Total Opportunities
61
Understanding Opportunities
Which product is performing better, the pencil or the

blender?

Rolled Throughput
Yield (RTY)
Pentel Pencil
Blender
0.030
97.04 %
0.189
82.78 %
62
Understanding Opportunities
Which product is performing better, the pencil or the

blender?
Pentel Pencil

Rolled Throughput
Yield (RTY)
Opportunities
DPU/Opp
DPMO
Product Sigma Level
Blender
0.030
97.04 %
0.189
82.78 %
15
0.00200
2000
4.405
97
0.00195
1948
4.405
RTY = e - dpu
ln(RTY) = - dpu
dpu = - ln(RTY)
Note: Assumes the defects were collected in the long term.
63
Measurement Systems Analysis (MSA)

Attribute Gage Repeatability and Reproducibility
(Attribute Gage R&R)
Task: You have 60 seconds to document the

number of times the 6th letter of the alphabet
appears in the following text.
64
Inspection Exercise
Task: You have 60 seconds to document the number of times the
6th letter of the alphabet appears in the following text.
The
Thenecessity
necessityof
oftraining
trainingfarmhands
farmhandsfor
forfirst-class
first-class
farms
farmsin
inthe
thefatherly
fatherlyhandling
handlingof
offarm
farmlivestock
livestockis
is
foremost
foremostin
inthe
theeyes
eyesof
offarm
farmowners.
owners.Since
Sincethe
the
forefathers
forefathersof
ofthe
thefarm
farmowners
ownerstrained
trainedthe
thefarmhands
farmhands
for
forfirst-class
first-classfarms
farmsin
inthe
thefatherly
fatherlyhandling
handlingof
offarm
farm
livestock,
livestock,the
thefarm
farmowners
ownersfeel
feelthey
theyshould
shouldcarry
carryon
on
with
withthe
thefamily
familytradition
traditionof
oftraining
trainingfarmhands
farmhandsof
offirst
first
class
classfarmers
farmersin
inthe
thefatherly
fatherlyhandling
handlingof
offarm
farm
livestock
livestockbecause
becausethey
theybelieve
believeititis
isthe
thebasis
basisof
ofgood
good
fundamental
fundamentalfarm
farmmanagement.
management.
65
Attribute R&R
An attribute R&R is used to:
Determine if operators across all shifts, all machines, etc., use the
same criteria to determine good from bad
Assess your inspection or workmanship standards against your

customers requirements
Identify how well these operators are conforming to themselves
Identify how well these operators are conforming to a known

master, which includes:
How often operators decide to ship truly defective product
How often operators do not ship truly acceptable product
Discover areas where:
Training is needed
Procedures are lacking
Standards are not defined
66
Increasing Yield through Inspection

DPUin
DPUescaping
Inspect
Inspection
Efficiency
DPU removed
Efficiency
DPUremoved
DPU in
Starting Defects per Unit, DPU
99%
95%
90%
85%
80%
70%
50%
5
3
5
6
7
9
12
20
2
3
4
6
7
8
11
19
1
3
4
5
7
8
10
18
0.5
3
4
5
6
7
10
17
Number of consecutive inspectors required to achieve an

escaping defect rate of 3.4 ppm (6, short term)
67
How to Run an Attribute R&R

Step 1: Select about 30 parts from the process.
50% of the parts in your study should have defects.
50% of the parts should be defect free.
If possible, select borderline (or marginal) good and

bad samples.
Step 2: Identify the operators who should be

qualified.
Step 3: Have each operator independently and in
random order assess these parts and
determine
whether or not they pass or fail
(judgment of good or
bad).
(continued)
68
How to Run an Attribute R&R

-cont.
Step 4: Repeat Step 3 for a second trial.
Step 5: Use the AttrR&R2.xls spreadsheet to report
the effectiveness and efficiency of the
attribute measurement system (operators and
the inspection process).
Step 6: Document and implement appropriate actions
to improve the inspection process (if
necessary).
Step 7: Re-run the study to verify the improvement.
69
Example
Attribute Gage R&R Effectiveness
Blank Form: AttrR&R2.xls
Enter Pass/Fail,
0/1, etc.
SCORING REPORT
5
Attribute Legend (used in computations)

1 pass
2 fail
Known
Known Population
Workmanship
or
Sample #
Attribute
Customer
Result
1
pass
2
3
4
5
6
7
8
9
10
pass
fail
fail
fail
pass
pass
pass
fail
fail
Operator #1
Try #1
Try #2
pass
pass
pass
pass
fail
fail
fail
fail
fail
fail
pass
pass
fail
fail
pass
pass
pass
pass
pass
pass
Data Entry
DATE: Today's Date

NAME: Green Belt
PRODUCT: ABC 123
BUSINESS:Division A
Operator #2
Try #1
Try #2
pass
pass
pass
pass
fail
pass
fail
fail
pass
fail
pass
pass
fail
fail
pass
pass
pass
pass
fail
fail
Title
Block
Operator #3
Try #1
Try #2
fail
fail
fail
fail
Operator
fail
fail
fail
fail
Results
fail
fail
pass
pass
fail
fail
pass
pass
pass
pass
fail
fail
70
Spreadsheet Results with

Calculated Confidence Intervals
Statistical Report - Attribute Gage R&R Study
% of time trial 1
agrees with trial 2
for each operator
DATE:
NAME:
PRODUCT:
BUSINESS:
Today's Date
Black Belt
ABC 123
Division A
% of time each
operator agrees with
the standard
% Appraiser
%Score vs Attribute
Source
Operator #1 Operator #2 Operator #3 Operator #1 Operator #2 Operator #3
Total Inspected
10
10
10
10
10
10
# Matched
10
8
10
7
6
6
False Negative (operator rejected good product)
1
1
3
False Positive (operator accepted bad product)
2
1
1
Mixed
0
2
0
95% UCL
100.0%
97.5%
100.0%
93.3%
87.8%
87.8%
Calculated Score
100.0%
80.0%
100.0%
70.0%
60.0%
60.0%
95% LCL
69.2%
44.4%
69.2%
34.8%
26.2%
26.2%
Statistical Report
71
Summary
An attribute Gage R&R must be performed to

ensure the integrity of attribute data.
Operators must inspect both known good,

borderline and bad parts:
Attribute measurement systems can be improved

by establishing standards and by operator training.
72
Measurement Systems Analysis
(MSA)
Variable Gage
Repeatability and Reproducibility
(Variable Gage R&R)
73
Why Study Measurement Systems?
Before you spend time and effort on a Green Belt project, we

must validate the integrity of the data we are going to use in the
decision-making process.
The study of measurement systems will provide information as

to the % of variation in your process data that comes from error
in the measurement.
It is also a great tool for comparing two or more measurement

devices or two or more operators against one another.
Measurement Systems Analysis should be used as part of the

criteria required to accept and release a new piece of
measurement equipment to manufacturing.
It should be the basis for evaluating a measurement system

that is suspect of being deficient.
74
Possible Sources of Variation

Observed process or product
variation
Actual process or
product variation
Long-term
variation
Short-term
variation
2 total = 2 product + 2 measurement

Variable R&R study
Measurement
variation
Due to
measurement
device (Gage)
Due to
operators
Repeatability
Reproducibility
Linearity
Calibration
program and
Gage
selection
Stability
Accuracy
75
Repeatability Defined
Repeatability of the instrument is a measure of the variation obtained when one
operator uses the same device to repeatedly measure the identical
characteristic on the same part.
part When no operator is present, repeatability
accounts for repeat measurements taken on an automated piece of test
equipment.
True value for one part
Quantifies the
repeatability of the
measurement system
Repeatability
Performance Characteristic
A variable R&R study will quantify the repeatability of the measurement system.
2 total = 2 product + 2 measurement system

2 total = 2 product + 2 repeatability + 2 reproducibility
76
Reproducibility Defined
Reproducibility is the variation in the averages of measurements made by
different operators using the same device when measuring identical
characteristics of the same parts. Reproducibility may also be used to quantify
differences caused by different measuring devices (substitute measuring device
for operator)
Reproducibility
Operator B
Device B
Operator A
Device A
Quantifies
differences between
the operators
(devices)
Performance Characteristic
A variable R&R study will quantify the reproducibility of the measurement system.
2 total = 2 product + 2 measurement system

77
The Methodology
Step 1: Collect 10 samples that represent the full range of longterm process variation. In addition, identify the operators
who perform measurements on these parts daily.
Step 2: Calibrate the Gage or verify that the last calibration date
is valid.
Step 3: Set up the Minitab data-collection sheet for the R&R
study.
Step 4: Ask the first operator to measure all the samples once in
random order. Blind sampling, in which the operator does
not know the identity of each part, should be used to
reduce human bias.
Step 5: Have the second and then the third operators measure
all the samples once in random order. All operators have
now measured the samples once (this is Trial 1).
(continued)
78
The Methodology
-cont.
Step 6: Repeat Steps 4 and 5 for the required number of trials.
Step 7: Enter the data into Minitab.
Step 8: Use Minitab to analyze the data by assessing the quality
of the measurement system. Determine follow-up actions.
Step 8: Analyze the Minitab output.
79
Variable Gage R&R Example

Situation: In our bicycle factory, the quality department
measures the length of the tube stock used to form the
handlebars on a sample basis. They use a steel rule
with an end stop to make this measurement. The rule
measures to the nearest 0.01".There are three
operators who cut tube stock and record this data.
Task: Determine the adequacy of the measurement
system.
80
Example
Step 1: Collect 10 samples that represent the full range of long-term

process variation. In addition, identify the operators who use this
instrument daily.
To determine the full range, lets look at the capability analysis for these
parts.
Process Capability Analysis for Bikebar Length
The parts have a mean of
LSL
USL
44.1" and a standard
USL
44.25
deviation of 0.10, so we
LSL
43.75
would expect 95% of the
Mean
44.10
parts produced to be
StDev 0.10
between 43.9" and 44.3"
( 2). We should use
parts in this range for the
43.8 43.9 44.0 44.1 44.2 44.3 44.4
study.
Mary, Pat, and Joe are the operators who measure this parameter and so
should be selected as part of the measurement study.
81
Example, Gage R&R Using Minitab
Step 2: Calibrate the Gage or verify that the last calibration date is valid.
In this case, we could measure some standard lengths to ensure that the steel
rule is not biased.
Step 3: Set up the Minitab data-collection sheet for the R&R study. Create the
R&R data-collection sheet for 10 parts, each measured two times by three
operators.
Column Headings:
Column 1: PartID (1 to 10)
Column 2: Operator (1 to 3)
Column 3: Operator Name
Column 4: Trial (1 to 2)
Column 5: Measure
82
Example, Gage R&R Using Minitab
Step 4: Ask the first operator to measure all the samples once in
random order. The operator should not know the identity of each
part, to reduce human bias.
Mary measures all of the parts in random order.
Step 5: Have the second and then the third operator measure all
the samples once in random order. All operators have now
measured the samples once (this is Trial 1).
Pat and then Joe measure all of the parts in random order.
Step 6: Repeat Steps 4 and 5 for the required number of trials.

Mary then Pat and then Joe measure the parts a second time in
random order.
83
Minitab Worksheet
Step 7: Enter the data into Minitab.
84
Run the Analysis
Step 8: Use Minitab to analyze the data.
Stat>Quality Tools>Gage R&R Study>Options
Enter PartID,
Operator, and
Measure.
5.15
5.15standard
standarddeviations
deviations
represent
99%
represent 99%ofofthe
the
normal
curve.
normal curve.
Enter 5.15 and
0.5
0.5comes
comesfrom
from0.25
0.25
the
0.5.
theprocess
processtolerance
tolerance
85
Gage R&R Output: Graphical

Step 9: Analyze the Minitab output.
Ga g e n a m e :
Da te o f s tu d y :
Re p o rte d b y :
Gage R&R (ANOVA) for Meas ure
To l era n c e :
M isc :
Components of V ariation
By Part ID
4 4 .2 5
Perc ent
10 0
% Co n tri b u ti o n
% Stu d y Va r
4 4 .1 5
% To l e ra n c e
50
4 4 .0 5
4 3 .9 5
0
Ga g e R&R
Re p e at
Re p ro d
Pa rt ID
Pa rt-to -Pa rt
Sa m p le Rang e
R Chart by Name
Joe
0 .0 4
M ar y
10
By Name
Pat
UCL =0 .0 4 1 8 2
0 .0 3
4 4 .2 5
4 4 .1 5
0 .0 2
0 .0 1
0 .0 0
R= 0 .0 1 2 8 0
4 4 .0 5
L CL =0
4 3 .9 5
Na m e
Joe
M a ry
Xbar Chart by Name

Joe
M ar y
UCL =4 4 .1 4
M e a n =4 4 .1 1
L CL =4 4 .0 9
4 4 .0
Na m e
J oe
M a ry
Pa t
4 4 .2
4 4 .2
4 4 .1
Pa t
Name* P art ID Interaction

Pat
Av era ge
Sam ple M e an
4 4 .1
4 4 .0
4 3 .9
0
Pa rt ID
10
Graphs! But what do they mean? Lets investigate each section one at a time.
86
The Bar Chart
87
The Xbar and Range Chart
88
Gage R&R, Xbar, and R
89
Operator Bias
90
A Part-by-Part Look
91
Another Graph: Gage Run Chart
It allows us to visualize repeatability and reproducibility within and

between operator and part
The center line is the overall average of the parts.

Gage name:
Date of study:
Reported by:
Tolerance:
Misc:
Runchart of Measure by Part ID, Name
Measure
44.24
Joe
Mary
Pat
44.14
44.04
43.94
Part ID
10
Measure
44.24
44.14
44.04
43.94
Part ID
92
Gage Results: Minitab Session Window

Source
VarComp
%Contribution
(of VarComp)
Total Gage R&R

Repeatability
Reproducibility
Name
Part-To-Part
Total Variation
1.90E-04
8.73E-05
1.02E-04
1.02E-04
6.45E-03
6.64E-03
2.86
1.32
1.54
1.54
97.14
100.00
Source
StdDev
(SD)
Study Var
(5.15*SD)
%Study Var
(%SV)
%Tolerance
(SV/Toler)
Total Gage R&R

Repeatability
Reproducibility
Name
Part-To-Part
Total Variation
1.38E-02
9.35E-03
1.01E-02
1.01E-02
8.03E-02
8.15E-02
0.070923
0.048129
0.052093
0.052093
0.413572
0.419609
16.90
11.47
12.41
12.41
98.56
100.00
14.18
9.63
10.42
10.42
82.71
83.92
93
Gage R&R, Distinct Categories

Number of Distinct Categories = Eight
This is the number of distinct categories this

measurement system can distinguish.
The number of groups within your process

data that your measurement system
can discern.
Source
Total Gage R&R
Repeatability
Reproducibility
Name
Part-To-Part
Total Variation
The part is in one of these eight zones.
VarComp
1.90E-04
8.73E-05
1.02E-04
1.02E-04
6.45E-03
6.64E-03
Dist Categories RoundDown
Total
* 2
2
MS
94
Handling Poor Gage Capability
If a dominant source of variation is repeatability (equipment), you need

to replace, repair, or otherwise adjust the equipment.
If, in consultation with the equipment vendor or upon searches of

industry literature you find that the Gage technology you are using is
state of the art and it is performing to its specifications, you should still
fix the Gage.
If a dominant source of variation is operator (reproducibility), you must

address this via training and definition of the standard operating
procedure. You should look for differences among operators to give you
some indication as to whether it is a training, skill, and/or procedure
problem.
Evaluate the specifications. Are they reasonable?
If the Gage capability is marginal (as high as 30% of study variation) and
the process is operating at a high capability (P pk greater than 2), then the
Gage is probably not hindering you and you can continue to use it.
95
Summary
Before you spend time and effort in a Green Belt

project, we must validate the integrity of the data we
are going to use in the decision-making process.
Measurement error is included with the process

variation in any observed Y.
When conducting a Gage study, we need parts that are

representative of the entire range produced by the
process.
We will use Minitab output, both graphical and

numeric, to assess the capability of the Gage.
96
Project Selection I
Objectives
To understand the importance of project selection

to Six Sigma success
To understand the difference between traditional

project selection and Six Sigma project selection
To be able to establish a business case
97
Importance of Project Selection

Dissemination of the Six Sigma culture
depends on news of successful projects

having significant business impact.
Poor project selection is the most
common root cause of delays in

completion of Six Sigma projects.
98
Six Sigma vs. Traditional Projects

Traditional Project Selection
Selected to optimize performance of one part of the business

Implementation of a pre-determined solution
Managing the exceptions vs. the norms
Lack clarity for project expectations
Examples:
Increase the number of sales

Create a new Reporting
System
Reduce OT in one department
Reduce the number of non

Reduce the cost of one operation
expensable expenses Paid
Improve on-time delivery

Increase total revenue
Install new equipment,
Reduce the cycle time in one

hardware/software
sub-process
(continued)
99
Six Sigma vs. Traditional Projects -cont.

Traditionally, Projects Show Little or No Business Impact
Optimize part of the business at the expense of another
Decreasing cycle time in a non-bottleneck process
Reducing the cost in one area by increasing the cost of

another
Do not address the root causes of existing problems
Automating a bad process nets producing defects quicker
Create more incremental costs than savings
Increasing the number of products/features sold but not

generating additional revenue from sales
Reducing the total paid out in expenses by implementing an

audit process that costs more than the overage in expenses
paid
(continued)
100
Six Sigma vs. Traditional Projects -cont.
Has too large a scope
Too many insignificant things are

distracting the attention of the team
Not enough attention is being

focused on things with the most
impact
101

Six Sigma Project Selection
Establishing a business case for a project
Narrowing the project focus based on a business

case
Avoids selecting projects with little or no business

impact
Avoids scope problems

Identifies the most significant areas to impact the
business case
Defining a project
Quantifies the problem and objectives, and outlines

the metrics used to determine project success
102

Six Sigma Project Selection
Establishing a business case for a
project
Narrowing the project focus based on a business case
Avoids selecting projects with little or no

business impact
Avoids scope problems
Identifies the most significant areas to impact the business
case
Defining a project
Quantifies the problem and objectives, and outlines the

metrics used to determine project success
103
Establishing a Business Case

Business Case
The business case establishes the importance of the

project to the business in terms of meeting business
objectives
Components
The output unit (product/service) for external customer
The primary business measure of the output unit for the

project
The baseline performance of the primary business

measure
A gap in the baseline performance of the primary

business measure from the business objective
(continued)
104
Establishing a Business Case -cont.
A business case establishes the need for a project

in terms of business objectives
Six Sigma business objectives
Reduce the cost/unit of a product
Decrease defects of a product
Increase product yield
Decrease the total cycle time of a product
(continued)
105
Project Selection II
Narrowing Project Focus
Objectives
To know how to identify a narrow project focus that

will provide the largest impact to the problem
outlined in the business case
To be able to evaluate several potential projects

objectively using the project desirability matrix
106

Comments on Narrowing a Projects Focus
When selecting an initial training project, it is

important that we look for high-leverage projects
where the return justifies the investment in time and
effort, and where the need for improvement is
substantial.
Please keep in mind that decisions based on

factual data are always better than those based
upon intuition, hearsay, or folklore.
(continued)
107
Narrowing Project Focus -cont.

Narrowing Project Focus:
Narrowing of the focus must be consistent with the

primary business measure in the business case
The following data is used in narrowing the project

focus:
COPQ (re-work, scrap, etc.)
Defect counts (actual defects, RTY, FTY)
Narrows projects focused on reducing cost/unit

Narrows projects focused on increasing quality or yield
Non-value-added time (re-work, delay, inspection)
Narrows projects focused on decreasing cycle time
108

Reducing Cost
Analysis to Reduce Project Focus:
INPUTS
SUB
PROCESS
SUB
PROCESS
SUB
PROCESS
Step 1: High-level process map analysis of the
Cost
Cost
the cost+to produce
Cost
Cost
OUTPUT
Cost toin
COPQ included
Produce
Identify the re-work and scrap throughout the process.

Attach the cost to business for each re-work and scrap point in the
process.
VALIDATE THESE COSTS WITH THE COMPTROLLER.
(continued)
109

Reducing Cost -cont.
Analysis to Reduce Project Focus
Step 2: Pareto analysis of the COPQ
COPQ for each sub

process
COPQ of each re-work
and scrap step
All Defects by Category,

xx/xx/99 to xx/xx/99
100
n=1298
80
1000
60
40
500
Percent
COPQ of re-work vs.

scrap costs
Count
20
0
0
te
Ca
Count
Percent
Cum %
go
ry
800
61.6
61.6
o
teg
Ca
ry
200
15.4
77.0
2
te
Ca
go
ry
75
5.8
82.8
o
teg
Ca
ry
60
4.6
87.4
4
t eg
Ca
ory
55
4.2
91.7
5
te
Ca
go
ry
20
1.5
93.2
6
t eg
Ca
ory
15
1.2
94.4
7
te
Ca
go
ry
rs
he
Ot
)
2
(1
14
59
1.1
4.5
95.5 100.0
Defect
110

Improving Quality
INPUTS
SUB
PROCESS
SUB
PROCESS
SUB
PROCESS
OUTPUT
Step 1: A high-level process map determines where defects occur throughout the process
+ Defects + Defects + Defects = Defects

RTYThe volume
RTY units within
RTY rejected
X of scrapped
X sub process,
Xat startRTY
= RTY
of next process
Defects
The volume of re-worked units within sub process, rejected at start of next process
(continued)
111

Improving Quality -cont.
Step 2: Pareto analysis of defects
Defects for each model
Type of defect
All Defects By Category,

100
n=1298
80
1000
Defects by machine
Defects by shift
60
40
500
Percent
Count
20
Defects by production
line
Defects by plant
0
te
Ca
Count
Percent
Cum %
go
ry
800
61.6
61.6
1
t eg
Ca
o ry
200
15.4
77.0
2
t eg
Ca
4
5
8
3
6
7
rs
ory
or y
or y
or y
ory
or y
he
Ot )
t eg
teg
teg
t eg
t eg
2
Ca
Ca
Ca
Ca
Ca
1
(
75
5.8
82.8
60
4.6
87.4
55
4.2
91.7
20
1.5
93.2
15
1.2
94.4
14
59
1.1
4.5
95.5 100.0
Defect
(continued)
112

Improving Quality -cont.
Step 3: Assess COPQ for the defects in the narrowed project focus area
How much raw material is scrapped due to defects?

Re-worked? Re-cycled?
What is the cost of the time in labor, machinery, and raw materials for the scrapped materials due to defects?
What is the cost of the time and labor spent re-working defects?
What is the cost of the time and labor lost on recycled defects? How do recycled materials impact the final product?
113

Reducing Cycle Time
Analysis to Reduce Project Focus:
SUB
PROCESS
INPUTS
SUB
PROCESS
Step 1: A high-level process map analysis of

the process
Time
Time
Time
Sub process input and output rates
Time spent in delay
Time spent in re-work sub processes
Time spent in test/inspection sub processes
SUB
PROCESS
OUTPUT
non-value-added time throughout
Time
Cycle
Time
(continued)
114

Reducing Cycle Time -cont.
Step 2: Pareto analysis of non-value-added time
Time spent in delay for

each backlog step
Total non-value-added
time after the last
bottleneck
Time spent in each
re-work step
Time spent in each test/
inspection step
All Defects by Category,

100
n=1298
80
1000
60
40
500
Percent
Volume of backlog at
each delay step
Count
20
0
0
te
Ca
Count
Percent
Cum %
go
ry
800
61.6
61.6
1
t eg
Ca
o ry
200
15.4
77.0
2
te
Ca
go
ry
75
5.8
82.8
3
te
Ca
go
ry
60
4.6
87.4
4
te
Ca
go
ry
55
4.2
91.7
o
teg
Ca
ry
20
1.5
93.2
6
t eg
Ca
8
7
rs
ory
or y
he
Ot )
t eg
2
Ca
1
(
15
1.2
94.4
14
59
1.1
4.5
95.5 100.0
Defect
(continued)
115

Reducing Cycle Time -cont.
Step 3: Assess COPQ for the non-value-added time to be eliminated by the project focus area
What is the inventory cost of the time in delay?
How much do re-work steps cost in terms of labor? Equipment?
How much do test/inspection steps cost in terms of labor? Equipment?
What will be the impact on units sold as a result of the lower cycle time?
116

Additional Considerations
In addition to the impact to the stated problem in the

business case, there may be:
Business constraints on capital investment in the

project
Business constraints on resource investment in the

project
For certification only, one additional factor must be

considered when selecting a project:
The project must serve as a learning opportunity.
IT MUST BE FEASIBLE TO COMPLETE THIS PROJECT

WITHIN FOUR MONTHS.
The project should offer the opportunity to use as many

tools as possible.
117
Project Selection III Project Definition

Problem Statement
What is a problem statement?
A problem statement describes in specific, concrete

terms what the data have revealed. It describes the
present undesirable situation with clarity and
objectivity while avoiding hidden solutions.
What are the purposes of a problem statement?
To focus the team on a process deficiency
To communicate the significance to others
118
Project Definition
Problem Statement
Required Criteria for a Good Problem Statement
It states the effect.
It is measurable.
It states what is wrong, not why it is wrong. Avoid

lack of and due to statements. These always
imply solutions.
It states how often, how much, and when.
It is specific.
It avoids broad and ambiguous categories such as

morale, productivity, communication, and
training.
119
Project Definition
Problem Statement
Additional Criteria for a Good Problem Statement
It focuses on the gap between what is and what should

be.
It is stated in an objective manner.
The gap may be a change or deviation from the norm,

standard, or the customers valid requirement or
expectation.
It is not stated as a question, which may tend to imply a
solution. It does not imply blame on any person or
department.
It focuses on the pain, either explicitly or implicitly.
The problem statement highlights how customers are

affected and the areas of discomfort, hurt, or annoyance.
120
Project Definition
Problem Statement
How are problem statements developed?
You should analyze and discuss all data collected

through narrowing the project focus.
A problem statement should be concise and answer

these questions:
Who is impacted by this problem?
What is the impact of this problem?
When has the problem occurred?
How do you know the problem occurs?
How many times does the problem occur?
121
Project statement:
Fill
FillIn
Inthe
theBlanks
BlanksFor
ForYour
YourProject:
Project:
During
During________________________
________________________, ,the
the____________________
____________________ for
for
(Period
(Periodofoftime
timefor
forBaseline
BaselinePerformance)
Performance)
(Primary
(PrimaryBusiness
BusinessMeasure)
Measure)
_____________
_____________was
was_____________
_____________. . This
Thisgap
gapofof________________
________________
(Output
(OutputUnit)
Unit)
(Baseline
(BaselinePerformance)
Performance)
(Bus
(BusObj
ObjTarget
Targetvs.
vs.Baseline)
Baseline)
from
from___________
___________represents
represents____________
____________ofofcost
costsavings.
savings. This
This
(Business
(BusinessObjective)
Objective)
(Cost
(CostImpact
ImpactofofGap)
Gap)
project
project will
will_______________________________________________.
_______________________________________________.
(Projects Expected Impact on Performance of Primary Business Measure)
(Projects Expected Impact on Performance of Primary Business Measure)
by
by_______________________.
_______________________.
(Projects Expected Completion date)
(Projects Expected Completion date)
122
Project Definition
Project Objective
The project objective states the goal of the project.

It must:
Address the issue in the problem statement
Quantify the expected performance improvement
Identify the expected timing
123
Project Definition
Project Objective
Why are objectives useful?
Objectives are set to give the team, as well as

others, a measure of the effectiveness of
performance,
To see whether improvement efforts are successful

in addressing the problem and, therefore, having an
impact on the problem stated in the business case.
124
Project Definition
Project Objective
How to set objectives:
Objectives should be set to be challenging but

achievable during a reasonable amount of time.
They should be based on logic, not just pulled out

of the air.
125
Project Definition
Primary Metric
The yardstick that will be used to measure your

success:
Must be consistent with the problem statement and

objective
Must be plotted on a time series graph with the

following lines:
Baseline performance (average over the past 12

months, if possible)
Actual performance
Target performance
126
Project Definition
Primary Metric
Project Metric Line Graph Example
7%
6%
5%
4%
3%
Dec97
Nov97
Oct97
Sep97
Aug97
Jul97
Jun97
May97
Apr97
Mar97
Feb97
Jan97
Nov96
Oct96
0%
Sep96
1%
Dec96
Baseline
Actual
Target
2%
Aug96
Return $ as a Pct of Sales $
Product Returns
127
Project Definition
Secondary Metric
The conscience that will keep you honest
Tracks potential negative consequences
More than one may be required
128
Project Selection Summary
Careful project selection is critical to the success of

the Six Sigma Quality Initiative.
The more desirable projects you have, the higher

the business impact, less effort is required, and
youll have a higher probability of success than
others.
Good problem statements and objectives clearly

communicate the scope, significance, and goals of
a project.
Primary and secondary metrics will be used to

measure the success of a project.
129
6 Sigma Project Scope

Candidate Name_____Chris Reynolds_____________________ Champion Name: ____Lavon Baxter_____________________________
Division: ____White- Rodgers__________________________________ Location: _Harrison, Arkansas_________________________
_
Problem Statement: __In fiscal year 1999, 25M gas valve reject rate for noise was 125,500 PPM. This PPM level equates to $105,000
in identified non-value added cost. This is the highest non-value added cost activity and requires over 6,000 hours of rework labor
Each year. In addition, the scrap generated from this reject level is over $15,000.
Baseline Time Frame: ____FY 99______________ ( The time period for data collection)
Project Primary Metric: (example - Cycle Time, PPM, Productivity) ___PPMs at Noise Test.__________________________________
Project Baseline: __125,000 PPMs_________ Project Goal: ____50,000 PPMs____________ Gap: _75,000 PPMs________________
Project Secondary Metric: (example - Cycle Time, PPM, Productivity) ____Rework Labor_____________
Project Third Metric:_________________________________
This project begins with the
Tube Assembly process operation and ends with the _____Noise Test______ process operation.
This project will be focused in the ___Harrisburg_________________ Facility, ____at the 25M line____________________
(Product Name, Line or Processes etc.)
Project Objective: _The objective of this project is to reduce the 25M Gas Valve noise test PPM by 60% by Jul 00.
This reduction would yield a cost savings of $63,000. _______________________________________________________________
(Project expected impact on performance of project primary business metric, dollars & completion date)
130
Candidate Selection
Black Belt / Green Belt Selection Criteria
Desire to Drive Change

Someone who is not afraid to take data that might
not tell people what they want to hear
Effective Communication Skills

Someone who can communicate across functional
and hierarchical boundaries
Demonstrated Leadership Abilities

Someone who can motivate others to participate in
the work ahead
131

Six Sigma Belt Roles and
Responsibilities
Roles:
Leads the teams as they implement the 6 methodology on projects
Introduces the methodology and tools to Team Members and the broader
organization
Reporting Lines:
Can report directly to the Champion or to the function
Must feel a part of the functional organization

Responsibilities:
Applies the methodology completely to the project
Acts as both a technical and cultural change agent for quality
Spreads the methodology to the project teams
Supports the efforts of the function by spreading the use of the

methodology when called on to assist on other business issues
Has dual membership: in the functional and 6 teams
Must have technical competencies required to effectively execute the

Six Sigma tools
Time Commitment:
Must be substantially dedicated (25% 100%)

Min. Training Requirement:
Attend Six Sigma training class
Complete all project-related requirements
132
Mentoring
133
Mentoring
Candidate:
Mr or Ms Candidate
Champion:
Mr or Ms Champion
Tel / e-mail:
Candidate@client.com
Tel / e-mail:
Champion@client.com
Location:
Project Title:
Date of this report:
To significantly improve my process

01/01/2001
Training Phase:
Support Person:
Anywhere USA
Measure
Mr or Ms SSQI Support
Problem Statement:
Enter your problem
Objective / Goal Statement:

Enter your goal
Project Deliverables - update each visit
Weighting
Score (0-4)
Weighted score
Problem Statement
12
Objective / Goal Statement
12
COPQ Definition
12
Metric Chart
Primary ~ Defects - DPU, PPM, RTY, etc.
Secondary ~ Potential negatives - COPQ, etc.
Project Time Line (Projplan.XLS)
Team Meetings
Project Notebook
Project Complexity
% Time dedicated to Six Sigma since last review
Candidate Self Assessment
Project Status Summary

reviewed with:
Champion
Key Stakeholders
3
3
3
3
3
Information Only
Information Only
4
4
4
4
4
Very
34% to 66%
Information Only
Good
3
3
4
4
12
12
12
12
12
A 0 rating indicates No action has been taken

2
3
4
Complete - does not
have all elements
Complete
Vague - No dollars or
no goal.
Perfectly clear Goals set
Estimate
Contains 3 elements;
Baseline, Goal &
Actual
Signed Off
not up to date
< 1 per week
not up to date
Very Complex
<33%
up to date
>= 1 per week
up to date
Slam Dunk
>66%
Poor. Having difficult

time understanding
how tools are
selected and applied
to the project
12
12
up to date
Complex
34% to 66%
Fair. Somewhat
Good. Leader,
understand the
aggressive,
tools and their
easily gets
application,
tasks
getting by with
accomplished
help from SSQ.
Not per Project Plan
Per Project
134
Weighted
score
Mentoring
Process Map
Multi Level Pareto Charts
Fishbone/5-Why
Weighting
3
3
1
Score (0-4)
3
3
3
9
9
3
XY Matrix (XYMatrix.XLS)
FMEA (pfmea_cp.XLS)
Gage R&R
3
3
3
3
9
9
A 0 rating indicates No action has been taken

1
2
3
4
Started
First Pass
Being Revised
Completed
Data being collected
One Level
Two Level
Three Level
Planned
In process
Completed
Analyzed
Decision(s)
Data being collected
In Process
Completed
made
Action plan
Started
Completed
RPN's Ranked
developed
Scheduled / Planned
In Process
Completed
Analyzed
Process Capability
Scheduled / Planned
Measure Phase Deliverables
In Process
Data collection
completed
Capability
established
Analyze Phase Deliverables - Graphical Analysis (x Search)

Demonstrated appropriate tool use
in completing the Measure Phase
Tool use not

appropriate
Appropriate tool
use
List of possible x's

Identification of Critical X's
Multi-Vari Analysis
t - Tests / Non-parametric hypothesis
Test of Equal Variance
Proportions Tests / Chi - Square
ANOVA
3
3
3
3
3
3
3
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Scheduled / Planned
Scheduled / Planned
Understands proper
Correlation and Regression

Improve Phase Deliverables
in completing the Analyze Phase
DOE
Scheduled / Planned
Sample Size Selection

Second Project (Measure Phase)
Control Phase Deliverables
in completing the Improve Phase
Second Project (Analyze Phase)
Control Plan
Lean Fundamentals
3
3
0
0
0
0
Scheduled / Planned
Started
3
4
2
0
0
0
0
0
0
One Page Summary Report

Final Report
3
4
0
0
0
0
Tool use not

appropriate
Measure Phase
Tool Knowledge
green
In Process
Analysis of
simulation
Applied
<=50% Complete <=75% Complete
Exceptional
Application
Analysis of
project DOE
Completed
Appropriate tool
Exceptional
use
Application
<=50% Complete <=75% Complete Completed
In Process
Completed
Revised
Mistake Proofing
Both
In Control Plan
1st pass
Draft
Completed
submitted
Draft
Total Score
Being Compiled Being Finalized

Completed
<=50% Complete <=75% Complete Completed
Understands how Has applied tool Has applied
Appropriate tool
use
Tool use not

appropriate
Started
Scheduled / Planned
5 S's
Exceptional
Application
#
Appropriateness of Tool Use
N/A
See Guidelines tab for rating explanation.
135
Change Management
Objectives
To know how a team leader can set up a team for

success in the change effort
To know the elements of making the teams change

efforts successful in the organization
136
Successful Change Project

THE TARGET
100%
Team Support,
PLANT STAFF
INVOLVEMENT
Six Sigma
BELTS
FOR A SUCCESSFUL BLACKBELT PROJECT
MEASURE
ANALYZE
IMPROVE
CONTROL
TIME
137
Elements of Successful Change

Identifying the Change Leader
Successful change initiatives require strong

committed leadership throughout the entire project
lifecycle. The leadership offers:
Visible, active, and public commitment and support

A willingness to take personal initiative and to
challenge the status quo
A high-level of attention to the project
Giving time to the team
Talking about the project to others
Establishing priorities for the project against other
demands in the organization
138

Building Mutual Need
Creating a shared need involves framing the need

to appeal to the interest of all those to be impacted
by the change:
A shared recognition by the team and the

stakeholders for the need and logic for the change
Appealing to the unhappiness with the current

situation
The ability to take perceived threats of the change

and turn them into opportunities for the future
139

Forming a Vision
Building a vision provides an organization with the

direction and motivation to make the change:
A view of what the future will look like with this

change
Appeals to logic and intuition while explaining why

the change is needed
Can help to establish milestones to mark the

progress of the change
140

Mobilizing Commitment
Mobilizing commitment positions the team for

support when it is faced with obstacles.
Create an alliance of committed supporters.
Identify the potential sources of resistance.
Convert all key influencers.
141

Sustaining Change
Change initiatives must be composed of

commitments rather than assignments:
Having consistent, visible, and tangible

reinforcement of the changed behavior is needed.
Integrating change into on-going work behaviors is

needed.
Aligning systems and structures helps make the

change a part of individual and team behavior.
142

Monitoring Change
Good measurement systems need to be

established early in the project.
What are the metrics that will be used to determine

the teams success in making a sustained change?
Tracking these metrics and sharing them across all

those impacted by the team
Winning support of doubters through results
143

Aligning Systems and Structures
Assessing the existing system of measures and

rewards will highlight existing practices that are
inconsistent or unproductive.
Identifying critical system and structure areas that

must be addressed
Assessing the risk of slipping back into old habits
Aligning systems and structures with desired

behaviors
144

System and Structures Integration Template -cont.
Evaluate rewards and recognition

1. List the behavioral changes.
2. Evaluate the organizations likely reaction to displaying
behaviors that are desired to move to and behaviors
desired to move from:
A= Reward or approval
B= Punishment or disapproval
C= No reaction
D= Impossible to predict
(continued)
145

System and Structures Integration Template -cont.
3. List the existing rewards available to employees.
4. Evaluate the existing rewards using the
measurement checklist.
5. Develop an action plan to reward the desired
behaviors not included in performance metrics or
included in the likely to receive reward or approval.
6. Develop an action plan to eliminate rewarding
behaviors that are not desired.
146
Wrap-Up
147
148
149
150
151
152

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Six Sigma Overview

To know what Six Sigma means

To be able to explain the meaning of Six Sigma as

To be able to explain the meaning of Six Sigma as

Comprehend Business Objectives/Priorities.

To gain a high-level understanding of Six Sigma and the

To walk out with an understanding of what is required to write

To ensure a common understanding of basic tools and

To clarify what is expected from you as champions and

Does Your Company Need Six Sigma?

Believe zero-defect goals are neither realistic nor achievable?

Have 10 times the number of suppliers required to run the

Have 5 to 10% of its clients dissatisfied with the product, the

Have customers who will not recommend that others purchase

Quantify profitability and growth?

Deliver new products to the market?

Does Your Company Need Six Sigma?

Continually implement price reductions for current

Have an increasing number of competitors?

Spend a high % of sales dollars on repairing or

Does Your Company Need Six Sigma?

Have a magician in your

Six Sigma Objectives

The Vision: Drive industries to design and produce

The Goal: Produce goods and services at a Six Sigma level.

Reduce production and development costs

Reduce cycle times and inventory levels

Increase profit margin

Improve customer satisfaction

The Strategy: Use a data-driven structured approach to attack

What Is Six Sigma?

Our organization uses only tribal knowledge.

Our organization collects data simply to say, We collect data.

Our organization collects data and we sometimes look at the

Our organization logically groups the data. We form charts.

Our organization uses sample data along with basic statistics.

Our organization uses sample data along with inferential

A+ Our organization quantifies processes via prediction equations.

What Is Six Sigma?

Six Sigma Approach

Cost (piece price)

Benchmarking and metrics

What Is Six Sigma?

used to indicate the performance

The number of standard

A measure of the number of

What Is Six Sigma?

Is 99% yield good enough?

Five lost e-mail messages per month

No cable television for 3.5 hours each month

15,000 overnight carrier packages lost per week

25 incorrect car rental reservations per company

Six Sigma Standard

Sigma level compared to defects

Defects per Million Opportunities

Note: Industry standard has

Process Capability (Sigma Level)

Six Sigma Overview