MR Business Efficiency & Effectiveness
DMAIC – Measure
GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Measure
Define
Measure
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Deliverables:
• Identify measurable
CTQs
• Define detailed as-is
process map
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Deliverables:
• Define measurement
system
• Start data collection
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Improve
Control
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Define
Measurement
System
Identify Defects
(What to Measure)
D
Analyze
GB2-4-DMAIC Measure
Evaluate
Measurement
System (How to
Measure )
Deliverables:
• Analyze measurement
system
• Evaluate process
performance
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MR Business Efficiency & Effectiveness
Importance of understanding CTQs
• In order to identify defects and improve processes, a team must first
understand customer requirements
• In order to identify defects and improve processes, a team must first
understand customer requirements
• CTQs are Critical to Quality requirements
• CTQs must be:
• Important to the customer
• Measurable
• CTQ drive the identification of the project’s metric of success
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GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Translating the VOC into CTQs
• They define what is important to the customer: “customer cares about it”
• They help specify requirements –“must-have” or “must-be” attributes
• They can be measured
– Measurement system must be acceptable (Measurement System
Analysis)
• They establish a target
– Customer specification limits will enable performance assessment
– Acceptable range of performance (process capability)
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GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Identifying measurable Y’s to satisfy the
CTQs
• To satisfy the CTQs we need to measure something specific, which
we will call a measurable Y
• There can be multiple measurable Y’s that satisfy a CTQ
• Our goal is to determine which measurable Y will have the highest
impact on the desired result leverage
• This will become our Project Y (primary metric)
Project Y
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GB2-4-DMAIC Measure
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GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Identify Project CTQs.
• We are in the bakery.
• We would like to buy “sliced white bread”.
• What are your top 3 external CTQs?
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GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Identify Project CTQs.
• We are in the same bakery.
• We are the owner and we heard
complaints about the taste of our bread.
• What are your top 3 internal CTQs?
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GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Measure
Define
Measure
1
2
Deliverables:
• Identify measurable
CTQs
• Define detailed as-is
process map
M
A
I
Deliverables:
• Define measurement
system
• Start data collection
C
Improve
Control
3
Define
Measurement
System
Identify Defects
(What to Measure)
D
Analyze
GB2-4-DMAIC Measure
Evaluate
Measurement
System (How to
Measure )
Deliverables:
• Analyze measurement
system
• Evaluate process
performance
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MR Business Efficiency & Effectiveness
Defining the as-is: Levels of a Process
A process map is a visual representation of a process.
• A high level process map identifies
and displays the major steps and
boundaries of the process being
addressed by the project
Process
Idea
generation
Process
start
Identification
of consumer
needs based
on the input
Proposition
generation
Concepts generation
Process
end
VPC
Selection of
the concepts
with high
success
chance
Consumer Centricity
Superior Technology
Perfect Execution
Input
• Category strategy
• Current state of the business
• Key trends
• Market data
• Global Marketing Plan
• Competitors analyses
Output
Process ends
• Selected concepts with the
potential for high success are
transferred into next
development phases
T&FC
phase
IPD
phase
MIP
phase
• A detailed process map includes
information on:
– What activities are performed?
– Who performs each activity?
– What sequence the activities are performed
in?
– What forms, reports, systems, files are
used?
– What decisions are made in the process?
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GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Measure
Define
Measure
1
2
Deliverables:
• Identify measurable
CTQs
• Define detailed as-is
process map
M
A
I
Deliverables:
• Define measurement
system
• Start data collection
C
Improve
Control
3
Define
Measurement
System
Identify Defects
(What to Measure)
D
Analyze
GB2-4-DMAIC Measure
Evaluate
Measurement
System (How to
Measure )
Deliverables:
• Analyze measurement
system
• Evaluate process
performance
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MR Business Efficiency & Effectiveness
Define measurement system
Before collecting data, we need an operational definition:
• A precise description of the specific criteria used for the measures
(the what)
• Identify Defect, CTQ, Metric
• The methodology to get the value for the characteristic you are trying to
measure (the how)
• Identify which sources of data (reports, collection sheets,
inspection points, etc) are available to measure the metrics
above
• Estimate the Baseline performance level
• Estimate the Entitlement (best short term observed historical
performance) and/or Benchmark
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GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Types of Data
Attribute Data
Binary Data
Discrete Data
Continuous Data
Only two possible
outcomes:
Outcomes categorizes
into groups or values
that can vary only by
whole units:
Values Can Be
Measured to Any
Degree of precision:
Zero or One, Good or
Bad, Yes or No, Pass or
Fail…
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Count, Position in
ranking, Nationality,
Exam grading...
GB2-4-DMAIC Measure
Time, Temperature,
Distance, Height…
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MR Business Efficiency & Effectiveness
Population vs. Sample Statistics
Population: a dataset that consists of
measurements of all the members of some group
Samples: a dataset which consists of
measurements of only a portion of the members
from some population
Sample
Sample Statistics are used
to estimate Population
Attributes like:
Population
Analysis
Population
Sample
Measure
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GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Measure
Define
Measure
1
2
Deliverables:
• Identify measurable
CTQs
• Define detailed as-is
process map
M
A
I
Deliverables:
• Define measurement
system
• Start data collection
C
Improve
Control
3
Define
Measurement
System
Identify Defects
(What to Measure)
D
Analyze
GB2-4-DMAIC Measure
Evaluate
Measurement
System (How to
Measure )
Deliverables:
• Analyze measurement
system
• Evaluate process
performance
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MR Business Efficiency & Effectiveness
Measurement System Analysis
• What is a Measurement System Analysis (MSA)?
A set of designed experiments to determine whether the measurement system
is both accurate and precise
• Why perform an MSA?
– To ensure that the measurement system is not a significant source of
variability
– To determine whether actions are necessary to repair or replace the
measurement system
– To accurately and precisely determine the true capability of our process
• We need to ensure that the measurement system does not contribute a large
amount of variability to the data before we conduct a process capability study
• If we do not conduct an MSA before the capability study, the variability of the
measurement system may make the capability appear worse than it really is
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GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Sources of Variation in Measurement
Input
Process
Outputs
Measurement
Process
Input
Outputs
• Observations
• Measurements
• Data
Observed Process Variation
Measurement Variation
Actual Process Variation
Long-term
Process
Variation
Short-term
Process
Variation
within sample
variation
Variation due
to operator
Variation due
to gage
Reproducibility
Accuracy
(Bias)
Repeatability
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Stability (time
dependent)
Precision (Pure
Error)
“Appraiser Variation”
Linearity (value
dependent)
“Equipment Variation”
GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Sources of Variation in Measurement
Reproducibility = Appraiser variation
Observed Process Variation
Measurement Variation
Actual Process Variation
Long-term
Process
Variation
Short-term
Process
Variation
Variation due
to operator
Variation due
to gage
within sample
variation
Reproducibility
Accuracy
(Bias)
Precision (Pure
Error)
Stability (time
dependent)
•Inadequate Training
•Mixed Priorities
•Excessive Overtime
•Operator vs Inspector Viewpoint
•Instructions not Sequential
•Procedures Different by Shift
•Instructions Not Clear
•Limited Planning for Capacity
Linearity (value
dependent)
Repeatability
“ 2:55 “
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“ 3:00 “
Same Clock
Same Actual Time
“ 3:05 “
GB2-4-DMAIC Measure
How to improve:
•Determine if the same procedure is
followed by all operators.
•Educate operators in “best practice”
•Consider automating some of the
most variable steps.
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MR Business Efficiency & Effectiveness
Sources of Variation in Measurement
RepEatability= Equipment
Observed Process Variation
Measurement Variation
Actual Process Variation
Long-term
Process
Variation
Short-term
Process
Variation
within sample
variation
Variation due
to operator
Variation due
to gage
Reproducibility
Accuracy
(Bias)
Precision (Pure
Error)
Stability (time
dependent)
•Increments too Large
•Estimation Required
•Poor Gage Design
•Test Equip not Warmed Up
•Operator Gage vs.
•Inspector Gage
•Out of Cycle Gage
•Worn Gage
Linearity (value
dependent)
Repeatability
• Not Precise
• Precise
How to improve:
•If possible, then repair, replace or
adjust the equipment
•A temporary solutions is averaging
multiple measurements
1 Operator - Same Unit
Same Measuring Equipment GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Performance Standards
• Performance Standards are an accepted requirement with Upper and/or
Lower Specification Limits
• Where do Performance Standards come from
• Customer Requirement
• Competitor Assessment
• Technical Capability
• Current Process Capability
• Government Regulation
• …
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GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Capability versus stability
We need to judge process
performance on two separate
criteria:
– Stability = predictability (will next
products be the same?)
– Capability (are the delivered
products OK = according to
spec?)
Capability should be done
after an acceptable MSA
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GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Process capability analysis
• Capability Analysis provides with a measure of how well the process
satisfies the customer requirements (is a quantifiable comparison of
Voice of Customer to Voice of the Process)
Voice of
the
Process
Voice of
the
Customer
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GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Unit, Defect & Opportunity
Unit
Defect
Opportunity
• A measure of volume
of output from your
area
• Anything that results in
customer
dissatisfaction
• Anything that results in
non-conformity
• Opportunity is the
number of possibilities
in which a product
may deviate from the
standard
• Examples: Yield <
90%, 12.5 < Weight <
12.9, Impact < 15,
Pallet damaged
• Examples: in/out spec,
in/out spec on color,
Dimensional error,
Corner defect per box
• Examples: Kg/day,
Fuel consumption per
km, weight/sample,
Defected parts/total
parts
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GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
DPMO Calculation
D
= number of defects (did not meet CTQ)
U
= number of units tested
OP
= opportunity for defect within a unit
DPU = Defects per unit (D/U)
DPO = Defects per unit per opportunity DPU/OP
DPMO = Defects per million opportunity = (DPO) x 106
Function:
Finance
Product:
Financial reports
Defect:
Entry not accurate
Unit:
Each entry
# of defects (D):
50
# of units (U):
50.000
# of opportunities (OP):
1
DPU
=
50/50.000 = 0.001
DPO
=
0.001/1
= 0.001
DPMO
=
0.001 x 106 = 1000
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GB2-4-DMAIC Measure
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MR Business Efficiency & Effectiveness
Computing Sigma from DPMO
D
DPMO
Sigma Level
DPMO
Sigma Level
500,000
460,000
421,000
382,000
345,000
309,000
242,000
184,000
136,000
96,800
66,800
44,600
28,700
1.5
1.6
1.7
1.8
1.9
2.0
2.2
2.4
2.6
2.8
3.0
3.2
3.4
17,900
10,700
6,210
3,470
1,870
968
483
233
108
48
21
8
3.4
3.6
3.8
4.0
4.2
4.4
4.6
4.8
5.0
5.2
5.4
5.6
5.8
6.0
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GB2-4-DMAIC Measure
A 6 sigma
process is one
in which
99.99966% of
the products are
statistically
expected to be
free of defects
(3.4 defects per
million)
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