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Dr. Ron Lembke SCM 462. DMAIC. Financial return Impact on customers and organizational effectiveness Probability of success Impact on employees Fit to strategy and competitive advantage. Selection Considerations. Conformance Projects Unstructured Performance Projects

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Dr ron lembke scm 462

Dr. Ron Lembke

SCM 462


Selection considerations

Financial return

Impact on customers and organizational effectiveness

Probability of success

Impact on employees

Fit to strategy and competitive advantage

Selection Considerations

Selecting projects

  • Conformance Projects

  • Unstructured Performance Projects

    • Problems because system poorly specified

  • Efficiency Projects

    • Acceptable products, not meeting internal goals

  • Product Design

    • Not meeting customer CTQ

  • Process design

Selecting Projects


  • Define

  • Measure

  • Analyze

  • Improve

  • Control

    • (Alternate meaning: Dumb Managers Always Ignore Customers)



  • Charter / rationale for the project

    • Why this, not others, need for project, costs, benefits

  • Developing a project charter (statement of the project)

  • Scoping:

    • Improve motor reliability

    • Most problems from brush wear

    • Problem with brush hardness

    • Reduce variability of brush hardness



Gather voice of the customer data to identify critical-to-quality (CTQ) characteristics important to customers

Select performance metrics

What are current levels

Expected improvements

What will need to be done, by whom





  • Develop operational definitions for each CTQ characteristic

  • Figure out how to measure internal processes affecting each CTQ, KPOV (Key process output variables), KPIV (Input Vars)

    • Y = F(x)

  • Figure out what data we need to collect

    • Easy to collect correctly

    • Interrupt process as little as possible

    • Collectors understand why collecting

    • “gage study” to determine the validity (repeatability and reproducibility) of the measurement procedure for each CTQ

  • Baseline data

    • Collect baseline capabilities for each CTQ

    • Determine the process capability for each CTQ



Consider all possibilities

Be clear – no guessing, training?

You might have forgotten some

Might need to revise – some cover too many things

Learn about different cases


Pareto chart

3. Collect the data

5. Tabulate the data – Do as %, if you want to

(6. Put each problem into dollars of cost, most complaints, lost employee minutes, etc.)

8. Sort biggest to smallest, graph.

Analyze – p. 87 – what would you fix?

Pareto chart

Pareto chart1

Further study of major categories

Grouping together smaller ones

Look for common causes

Pareto chart




  • Does the process work the way we think it does?

  • Identify upstream variables (x’s) for each CTQ

    • Process mapping

  • Operationally define each x

  • Collect baseline data for each x

  • Perform studies to determine the validity (repeatability and reproducibility) of the measurement process for each x

  • Establish baseline capabilities for each x

  • Understand the effect of each x on each CTQ



  • Brainstorm ideas of potential root causes– everyone participates

    • Generate ideas about potential root causes

    • Understanding the process, not solving the problem yet


Cause and effect diagram

  • Ishikawa, Fishbone

  • Puts things in an organized way

  • Separate things into manageable parts (like KJ in that way)

    • Methods, Materials, Machines, People, Environment, Information

  • Create the diagram

  • Analyze the diagram – look for cost effective solutions!

Cause and Effect Diagram

Why why

Ask “why” 5 times, or as many as it takes

List of next steps, things to investigate



  • Scatter plots - Look for trends

  • Run charts – same thing

    • DJIA = Financial Performance?



Determine optimal levels of critical x’s to optimize the spread, shape and center of the CTQ’s

Action plans to implement the optimal level of the x’s

Conduct pilot test of the revised process


Run into resistance

Force Field!

Run into resistance?

Force field analysis

For and against

Action items for each

Strength of each

Force field analysis


Risk abatement planning and mistake-proofing to avoid potential problems with the revised settings of the x’s

Standardize successful process revisions in training manuals

Control revised settings of the critical x’s

Turn revised process over to the process owner for continuous improvement using the PDSA cycle


Report phase

Tell everyone what you did, so they can learn from it potential problems with the revised settings of the

Report Phase

Hw p 97

Questions 3, 4, 6, 7, 10, 16 potential problems with the revised settings of the

HW – p. 97