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DMAIC – An Overview. Barry Murash MBBit Nortel 2007. 6 Sigma Evolution… Where did it come from…. A continuation of the overall TQM (Total Quality Management) concept of “continual improvement” of a process originally introduced by the “Quality Guru’s” …Deming…Juran…Crosby…Taguchi.

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Dmaic an overview

DMAIC – An Overview

Barry Murash MBBit

Nortel

2007


Dmaic an overview

6 Sigma Evolution…Where did it come from…

  • A continuation of the overall TQM (Total Quality Management) concept of “continual improvement” of a process originally introduced by the “Quality Guru’s” …Deming…Juran…Crosby…Taguchi.

  • Conceptualized and formally introduced by Motorola in the mid 1980’s as a quality goal required because technology was becoming so complex that the traditional ideas about acceptable quality levels were inadequate.

  • In 1989 Motorola announced a five-year goal – a defect rate of not more than 3.4 parts per million – or 6 Sigma on its key processes.


By the numbers

By the Numbers . . .

Fortune 500 companies doing Lean Six Sigma100

Dollars returned compared to dollars invested8:1

Benefits as a percent of revenue for top companies5


Six sigma measure of process capability

Six Sigma: Measure of Process Capability

6 Process output=3.4 Defects per Million Opportunities

  • Sigma (“”) is a measure…

6

5

Defective

4

3

* DPMO = Defects per million opportunities

2

Process Output(Variation)

1

Customer Expectation

…that focuses on the variation of the process output


A structured framework

Aligning the

Organization

Define

Define

Measure

Measure

Analyze

Analyze

Improve

Improve

Control

Control

DEFINE

DEFINE

MEASURE

MEASURE

ANALYZE

ANALYZE

IMPROVE

IMPROVE

CONTROL

CONTROL

the project

the project

the defects

the defects

why

why

the

the

performance

performance

the process by

the process by

boundaries

boundaries

and

and

where

where

defects

defects

by

by

monitoring

monitoring

they occur

they occur

occur and

occur and

implementing

implementing

performance

performance

in the

in the

verify

verify

which

which

solutions

solutions

upstream to

upstream to

Managing

Processes

Closing

Performance

Gaps

process

process

reasons are

reasons are

that eliminate

that eliminate

ensure the

ensure the

root causes

root causes

root cause(s)

root cause(s)

problems stay

problems stay

fixed

fixed

Define

Measure

Analyze

Design

Validate

DEFINE

MEASURE

ANALYZE

DESIGN

and

VALIDATE

the project

and prioritize

alternative

optimize the

that the

opportunity

customer

high level

detailed

detailed

and

requirements

process

process flow

design meets

boundaries

(CTQs)

design

supporting

customer

against

the high level

requirements

CTQs

design

and achieves

selected

performance

objectives

A Structured Framework

Tell us what’s important

- Focus -

Helps us fix the problem

- Improve -

Top-Level Indicators

Problem Solving (DMAIC)

Vision

Tell us what’s not working

- Measure -

Process (Re) - Design (DMADV)

Process Management Control Systems

To instill process discipline & fact-based decisions


Dmaic an iterative approach

DMAIC – An Iterative approach

Define

Measure

Analyze

Improve

Control

  • Team Charter

  • Process Mapping

  • Defining CTQs

  • SIPOC

  • Measure process

  • Performance

  • Measure CTQs

  • Determine baseline

  • sigma level

  • Identify & Quantify

  • root causes

  • Use various

  • statistical and

  • analytical tools,

  • identify low hanging

  • fruit

Select, design &

Implement solution

  • Institutionalize

  • Improvements

  • Implement ongoing

  • Controls

  • Standardize process


Dmaic an overview

DEFINE at a Glance

To define the customer, their CTQs, the team charter, and map the core business process

Identify Business Opportunity/Gap ($)

Identify Outcome Indicators

Select Resources (% Time) and Charter Project

  • Select measures that link process performance to problem area related to CTQ

  • Shows need for improvement

Identify Customer’s Critical To Quality (CTQ) Attributes

Develop Preliminary Problem Statement

Map High Level Processes and Set Boundaries

Assess Financial $ Impact (COQ)

Prepare Communication & Project Plans


Dmaic an overview

MEASURE at a Glance

Customer

Customer

To measure the process performance

Create Detailed

Process Map

Develop Data Collection Plan

Assess Process Performance

Set Process Performance / $ Improvement Goal

Collect Data

Stratify Data

Identify Value Added & Non-Value Added Steps

DevelopFinal Problem Statement

Calculate Performance

Plot Defect Data Over Time


Dmaic an overview

ANALYZE at a Glance

5

10

15

20

25

30

3

5

40

45

50

55

60

>60

5

10

15

20

25

30

3

5

40

45

50

55

60

>60

Y

5

5

10

10

15

15

20

20

25

25

30

30

3

3

5

5

40

40

45

45

50

50

55

55

60

60

>60

>60

Stratified Frequency Plots

Time With Customer

X

(in minutes)

Contingency Table

Sub Cause

Scatter Plots

Made the Sale

Made the Sale

Yes

No

5

5

5

5

10

10

15

15

20

20

25

25

30

30

3

3

5

5

40

40

45

45

50

50

55

55

60

60

>60

>60

Present

Did Not

Make the Sale

Did Not Make the Sale

Defect

5

5

Not

Present

5

5

10

10

15

15

20

20

25

25

30

30

3

3

5

5

40

40

45

45

50

50

55

55

60

60

>60

>60

Time With Customer

(in minutes)

To analyze the data and the process map to determine root causes and opportunities for improvement

Brainstorm and Organize Potential Causes

Confirm Root Causes

Cause and Effect Diagram

Root

Root

Cause

Cause

Sub Sub Cause

1

1

Sub Sub Cause

Sub Sub Sub

Sub Sub Sub

Cause

Cause

Sub

Sub

Sub

Cause

Sub

Cause

Final ProblemStatement

Final ProblemStatement

Cause

Cause and Effect Diagram

Cause

Sub Sub

Sub Sub

Cause

Cause

Sub

Sub

Cause

Cause

Sub Cause

Sub Cause

Sub Sub Cause

Sub Sub Cause

Sub

Sub

Cause

Cause

Root

Root

Sub Sub Cause

Sub Sub Cause

Cause

Cause

2

2

Verify Potential Causes with Data


Dmaic an overview

“After”

Item or

Potential

Potential

Responsibility

Occurrence

Occurrence

Process

Failure

Effect (s)

Potential

Current

Recommended

and

Detection

Detection

Severity

RPN

Severity

RPN

Step

Mode

of Failure

Cause(s)

Controls

Action

Target Date

Action Taken

Ease to Implement

Effectiveness

Root Causes

Solutions

Specific Tasks

Total Score

Problem

Action

Cost

Total Risk Priority Number =

“After”

Risk Priority Number =

:

Problem Statement ________________________________________

Solution (s) / Specific Task (s) ____________________________

Cost/Benefit Analysis

Task / Project

Status

Who

Due Date

1.3 s

3.1 s

100%

100%

Cost

}

Before

After

75%

75%

Good

Benefit

Improvement

50%

50%

}

Improvement

25%

25%

Approval from Finance

DEFINE

IMPROVE changes

A2

A1

A3

A4

implemented

A1

A2

A3

A4

Time

IMPROVE at a Glance

To generate, select, and implement improvements

Conduct Risk Analysis

Identify and Select Solutions

Update Outcome Indicators

Develop Pilot Plan

Gantt Chart

FMEA

Solution Selection Matrix

Before

Before

After

After

Good

3.6s

3.2s

IMPROVE changes

implemented

}

Improvement

Time

Time

Quantify Pilot Results

Conduct Cost/Benefit Analysis

Develop Action Plan For Full Implementation

Updated Pareto Chart

Before

After


Dmaic an overview

StandardPractice

TrainingCurriculum

TrainingManual

“Y” Outcome Indicators

Good

Cost/Benefit Analysis

Approval from Finance

“X” Upstream Indicators

UCL

UCL

LCL

LCL

CONTROL at a Glance

To institutionalize the improvement and implement ongoing monitoring

Develop and Document Standard Practices

Train Personnel

Verify Cost/Benefit

Fully Implement Solutions and PMCS

Close Project and Celebrate

Build the

Process Management Control System

Replicate Projects at Other Locations


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