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166 Cards in this Set
 Front
 Back
Six Sigma is:

A customer focused well defined problem solving methodology supported by a handful of powerful analytical tools


Continuous improvement is:

Driven by execution of carefully selected projects.


The goal of the Six Sigma approach is to:

take small steps forward and no steps backward.


The purpose of all six sigma work and all improvement efforts is to

better serve customer needs and expectations thereby providing increasing value to the customer and ensuring repeat business.


Six Sigma Approach
Uses statistics solely as 
tools for interpreting and clarifying data


Six Sigma Approach
Requires not just statistics but changes in 
the culture of the organization.


Six Sigma Approach
Requires a deep commitment from? 
the highest levels of management


Six Sigma Approach
Requires a tolerance for endlessly questioning the 
validity of sacred company beliefs and the traditional ways "things are done around here"


Six Sigma says the law of diminishing returns

does not apply


For Six Sigma to be effective what 3 things must happen?

there must be a process in place
the processes must be brought into control statistically the processes must be improved (by reducing variation) "Six Sigma Mantra" 

Six Sigma is:

A customer focused well defined problem solving methodology supported by a handful of powerful analytical tools


Continuous improvement is:

Driven by execution of carefully selected projects.


The goal of the Six Sigma approach is to:

take small steps forward and no steps backward.


The purpose of all six sigma work and all improvement efforts is to

better serve customer needs and expectations thereby providing increasing value to the customer and ensuring repeat business.


Six Sigma Approach
Uses statistics solely as 
tools for interpreting and clarifying data


Six Sigma involves a series of steps designed to lead the organization through the gauntlet of process improvement. Major steps include:

@DMAIIC
@D= Define @M= Measure @A=Analyze @I= Improve (cost justification) @I= Implement @C= Control (standardize and Validate) 

D= Define the opportunity

Improve on what matters most to the client and significantly impact the bottom line


M= Measure the current performance

Map the process gather initial performance data and determine current Sigma level.
Obtain client input factors critical to quality (CTQ) 

A= Analyze the current process

Perform cause and effect analysis to determine reasons for gaps in performance.


I= Improve process efficieency

Determine breakthroughs design future state: new process, new "sigma" level
Create dashboards, scorecards and plans 

I= Implement improvements

Execute plans, overcome barriers
Transition to the new process 

C= Control and adjust new processes

Measure improvements and breakthroughs
Report dashboard, scorecard data and client feedback 

The study of variation begins with the teachings of

Dr. Edward Deming... The theory of profound knowledge... essential for any organization that desired to be competitive in today's marketplace


Profound knowledge is

@Knowledge of systems
@Knowledge of Statistics (variations) @Knowledge of psychology (Motivation) 

A system is

a network of interdependent components that work together to try to accomplish an aim.


Systems are

managements responsibility.


Managements job is to

optimize the entire system over time.


Variation happens it is

the voice of the system or process


Use statistics to make

the invisible visible ...show patterns and types of variations


Distinguish between

special and common causes of variation


Variation
Must act according to 
type of cause and avoid tampering.


Shrink variation equals?

reducing variation reduces costs


Psychology
People want to 
do a good job and contribute and have pride and joy in their work


Psychology
need to tap into 
intrinsic motivation


Psychology
Must 
drive out fear and build trust.


Everything does what

Varies
nothing is exactly 100% repeatable. 

About Variation
Special Cause 
find special causes and remove.
Those closest to the process are most likely to find the special causes of variations 

About Variation
Common Cause 
Take action on the system
Management is responsible for the system 

When only normal variation (common cause) is present in a process the process is said to

be stable


Stable processes are

predictable


Stable processes are in

(statistical) control


Stable processes have a

known process capability


A process is said to be in statistical control when

through the use of past experience we can predict how the process will vary in the future. CONTROL = PREDICTABILITY


CONTROL EQUALS

PREDICTABILITY


Theorem
Basic theorem of variation 
If you always do what you always done you will always get what you always got.


Corollary to the Basic Theorem of Variation

Insanity... always doing the same thing over and over again expecting a different result


In order to monitor any process effectively there are several pieces of information that must be known:

@ Central location
@ Spread @ Shape (bell shaped curve) @ Relationship of the variation to time 

A Histogram is

A graphical representation of data in a bar chart format.


What is used to observe the "SHAPE" of the data?

Histograms


Central location

@Mean
@Median @Mode 

Variability

@Range
@Standard Deviation @Shape 

Measures of Central Location

@Average
@Mode @Median @Arithmetic Mean 

The Average is

the expected value or the balance point


Mode is

the most frequently occurring value


Median is the

middle value


Arithmetic Mean is

the total of the individual values divided by the number of individual values.



x 
Represents the symbol for average.


If the shape of the distribution is not symmetrical use what

median of the mode


if the shape of the distribution is symmetrical use

arithmetic mean


6,7,7,8,8,8,9,9,9,9,10,10,11,11,12,13
The mode is? 
9 because it is the most frequently occurring value.


6,7,7,8,8,8,9,9,9,9,10,10,11,11,12,13
The median is? 
9 because it is the middle value


6,7,7,8,8,8,9,9,9,9,10,10,11,11,12,13
The mean is? 
9.1875 because it is the actual average.


Measures of Variability are

Range
Standard deviation 

The range is

the difference between the largest and the smallest values in the sample.


The symbol for range is

R


Standard Deviation is

a mathematical measure of the variability of the data about the mean.


The symbol for Standard Deviation is

S
6 

Between plus and minus one standard deviation of the mean we normally expect to find about what % of the values

68%


With in 2 standard deviations of the mean we would expect to find approximately what % of the values

95.5%


Within 3 standard deviations of the mean we would expect to find about what % of the values?

99.73%


3 standard deviations 99.73% of the values, represent what?

virtually all the values and the expected limits of common cause variation necessary for a stable and predictable process


Six Sigma Quality
Customer requirements are ? 
6 standard deviations from the mean in either direction.


3 sigma equals ? errors per million

27 errors per million


6 sigma equals ? errors per million?

3.4 errors per million


six sigma total range is ?

12 which means 6 standard deviations each side of the mean.


The Grand Average

is the process average. it is usually the average of the sample averages. (as long as all samples are the same size)
It is also the averge of all the individuals. 

The symbol for grand average is?

_
_ x 

Calculate the grand average for
@2,3,6,9,1 @3,6,4,1,11 @2,7,22,0,9 @4,8,0,14,0 
@2,3,6,9,1....4.2
@3,6,4,1,11...5 @2,7,22,0,9...8 @4,8,0,14,0...3.6 @20.8/4=5.2 

Average Range is the ?

estimate for total process variability.
The average range is the average of the sample ranges 

the symbol for average range is?

_
R 

The Grand Average

is the process average. it is usually the average of the sample averages. (as long as all samples are the same size)
It is also the averge of all the individuals. 

The symbol for grand average is?

_
_ x 

Calculate the grand average for
2,3,6,9,1 3,6,4,1,11 2,7,22,0,9 4,8,0,14,0 
2,3,6,9,1....4.2
3,6,4,1,11...5 2,7,22,0,9...8 4,8,0,14,0...3.6 20.8/4=5.2 

Average Range is the ?

estimate for total process variability.
The average range is the average of the sample ranges 

the symbol for average range is?

_
R 

The Grand Average

is the process average. it is usually the average of the sample averages. (as long as all samples are the same size)
It is also the averge of all the individuals. 

The symbol for grand average is?

_
_ x 

Calculate the grand average for
2,3,6,9,1 3,6,4,1,11 2,7,22,0,9 4,8,0,14,0 
2,3,6,9,1....4.2
3,6,4,1,11...5 2,7,22,0,9...8 4,8,0,14,0...3.6 20.8/4=5.2 

Average Range is the ?

estimate for total process variability.
The average range is the average of the sample ranges 

the symbol for average range is?

_
R 

Calculate R bar for the following data:
2,3,6,9,1 3,6,4,1,11 2,7,22,0,9 4,8,0,14,0 
2,3,6,9,18
3,6,4,1,1110 2,7,22,0,922 4,8,0,14,018 58/4=14.5 

Data is described to assist with the analysis in six sigma. in order to completely describe data we need to know the following?

Location (Histogram/ranges)
Spread (Histogram/ranges) Shape (Histogram/ranges) Variation over time (off the control chart) 

Most measures have ?

Targets. for example an organization may promise delivery in 24 hours.


A histogram shows us the ? of distribution

shape. bell shape or normal curve


Sometimes the shape is not normal what must we do?

we must compare our shape with the expected shape to see if the process is behaving like it always has.


Use the Histogram to compare the

observed shape compared to the expected shape


If the Histogram pattern is different from what we expect then?

we may not be doing what we always have. or we may not be predictable or we may not be stable.


Process monitoring is performed to

determine the type and amount of variation that is present in a process as time goes by


The two types of variation are

common cause
& Special Cause 

Control Charts are

Statistical tools which shows the amount and type of variation present in any process that is being monitored.
and describe the representative nature of a stable, predictable, in a control process 

Control chart shows how much?

variation we have and what type of causes


5 Components of control charts are:

UCL upper control limit
LCL lower control limit CL Center line (shows where the character istic average falls USL Upper specification limit or upper customr requirement (come from customer) LSL Lower specification or lower customer reuirement. 

UCL

upper control limit


LCL

lower control limit


CL

Center line (shows where the characteristic average falls


USL

Upper specification limit or upper customer requirement (come from customer)


LSL

Lower specification Limit or lower customer requirement.


Control limits describe the

representative nature of a stable process. specifically control limits identify the expected limits of normal, random or chance variation that is present in the process being monitored.


Control limits are set by

the process. The process sets the limits itself. the only way to change control limits is by changing process.


Specification Limits are those limits that describe what?

the characteristics the product (or process) must have in order to conform to customer requirements or to perform properly in the next operation


Specific limits come from

directly from the customer
*what the product or process that may be to keep the customer happy *easy to change 

Control limits different types of charts come in two categories

Variables & Attributes


Control limits different types of charts.
Variables 
* Averages and ranges, Green Belts are expected to be able to construct and interpret this control chart
* individuals and Moving ranges. This is useful in service applications * Averages and standard Deviations * Medians and Ranges 

Control limits different types of charts.
Attributes (Things we count)... 
*Percent Defective
*Number Defective *Number of defects *Defects per unit 

Constructing an Xbar and Rbar chart

Identify characteristic and sampling scheme
Record Data Calculate sample average and sample range Calculate grand average and average range If stable (histogram of individual measurements) calculate limits Calculate control limits Construct control charts Plot initial data points Interpret chart with respect to variation common cause special cause. 

What is needed for a sampling scheme (3)

Determine sample size
sampling frequency (how often do we measure) Make sure we have a big enough sampling to be representative 

Charts do what?

Monitor processes and provide a record of behavior over time.


When out of control it means

not stable
special cause variation is present Stop and identify the special cause 

Control limits describe what?

the representative nature of a stable process. Specifically they identify the expected limits of normal, random or chance variation that is present in the process being monitored.


Process Capability is ?

the measured, inherent reproducibility of the product turned out by the process.


Process capability can be quantified from what?

data which in turn are the results for measurements of work performed by the process. It defines limits we would normally expect virtually all individuals to fall within.


By definition a capable process is operating at?

3 sigma level or 99.73%


Process capability is the range

over which the natural variation of a process occurs as determined by the system of common causes.


Process capability it is the ability of

the combination of people, machines, methods, materials and measurements to produce a product or service that will consistently meet design specifications.


Process capability is measured by

the proportion o output that can e produced within design specifications.


Process capability is a measure of the uniformity of

the process


Process Capability can be measured only

if all special causes have been eliminated and the process is in a state of statistical control.


If process is not in control

don't estimate its capability, its meaningless.


Components of Process Capability are?

Design specifications
Centering of natural variation Range or spread of variation 

Capability measures...Short term show the

capability oat a specific instance in time e.g.5 out of 90 samples did not meet customer requirements


Capability measures .... Long term show

the expected capability of the process based on the statistical projections using inherent process variability


What must be performed prior to calculating any process capability measures?

Histogram
& Control Chart 

Greenbelts are expected to be able to calculate

Percent or Proportion Non Conforming
Cp Index Cpk Index 

Percent or proportion Non Conforming tells us what?

once we know this we know defects/million
known sigma level 

Cp Index and Cpk Index are what

quality metrics ... a quick way to tell how we are doing relative to how we should be doing


Percent Non Conforming reflects what

the proportion of the population that we normally expect not to meet the process specifications.


Percent Non Conforming corresponds to

the tail areas on the normal curve sketch


Capability Indices show the relationship

between the process capability and the process specifications


Cp measures

potential capability assuming that the process average is equal to the midpoint of the specification limits and the processes operating in statistical control.


Cpk reflects the

current process mean's proximity to either specification limit. (when the process is centered Cp = Cpk) Although the indices are calculated differently the interpretation is the same. always use Cpk


If Cpk is less than 1

we are not capable


if Cpk is equal to 1

then equivalent to 3 sigma level and therefore capable.


If Cpk is greater than 1

then we are more than capable


Understand Who? and Understand What?

Who your customers are and what you provide for them.


W@hat distinguishes Six Sigma from the other Quality Improvement Methods?

Justifying improvements int eh language of management.


D in DMAIIC IS

Define. the hardest part of DMAIIC.


D in DMAIIC means what

Define
it includes identifying the problem, and setting the scope. It also includes: Identifying the customers and what is important to them Determining the outputs Determining the inputs Determining what is critical 

Tools used in Defining are

Process Analysis
Flow Charting Check Sheets Pareto Analysis Cause and ?Effect Diagrams FMEA(Failure Mode Effects Analysis) 

The second step in DMAIIC is

M for Measure.
Identify and verify critical quality characteristics Estimate current capability Determine where you are relative to desired objectives 

Common tools used to measure

Process Capability (Percent Nonconforming, Capability Indices)
Measurement Systems Analysis Cost of Quality (Appraisal, Detection, Failure) 

Third Step in DMAIIC is

Analyze


Analyze does what

makes sense out of the data that is collected during measure.
This shows the amount of improvement that might be possible to make the critical quality characteristic "best in class" 

Possible Analysis tools are

Descriptive Statistics
Inferential Statistics Probability FMEA prioritize potential failures according to their risk and drives actions to eliminate or reduce their likelihood of occurrence 

Improvement

in order to improve, possible improvements are evaluated in a logical and planned fashion


Improvement tools

Design of experiments (ANOVA, Factorial)
Simulation Cost Justification FMEA Project Management Correlation Regression (linear, Multivariate) 

Implement means

Improvements are implemented in a logical and planned fashion
a project plan is developed and managed. 

C stands for

Control


In the control phase

measures have been implemented and steps are taken to make sure improvements are maintained.


Tools for control are

Statistical process control cost of Quality
Cost Analysis ISO 9000 

Implementation Strategy items

Top Management Support and Participation
Project Identification Resource Allocation Data Based Decision Making Measurement and feedback 

Implementation process of Six Sigma must be

Top down approach.
Responsibility must lie with senior management. Senior management must drive the process through the organization. Elements of this include selection of projects allocation of resources and decisions based on measurements 

Steering committee

Identifies projects
Identifies black belts allocates resources monitors progress reviews effectiveness establish implementation strategy and policies 

Cost is the

sum of the labor raw materials and overhead used to produce it. The minimum cost required to accomplish the functions desired is necessary cost and cost above this is unnecessary


Variable cost is directly

associated with the production of a product: direct labor direct materials


Fixed costs is

not affected by a change in level of production.


Break Even Point

Point at which total costs equals total revenue.
