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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
2,3,6,9,1-------8
3,6,4,1,11------10
2,7,22,0,9------22
-4,8,0,14,0-----18
--------------------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.