What do CSI, Oglethorpe and Six
Sigma have in common?
Victor Kane – KSU Associate Professor
Department of Mathematics and Statistics
1
Orientation Overview
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What is Lean Six Sigma?
Origin of Lean Six Sigma
Process Improvement Organizational Model
Quality Awards Using Process Improvement
KSU Customer Service Initiative
Research Activity in Six Sigma
• Six Sigma Jobs: http://www.indeed.com/
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What is Lean Six Sigma?
• Definition – Lean Six Sigma is an improvement
methodology for reducing cost through
improving products and services related to
customer satisfaction.
• Observation – the methodology used in Lean
Six Sigma is not new, but a disciplined
evolution of approaches used in Quality
Control during the 20th century.
3
Why Consider Lean Six Sigma?
• Jack Welch – CEO GE (1981-2001)
http://www.youtube.com/watch?v=aNMULFcLuIM
“I see a Six Sigma company as a company whose
management understands that variation is evil….”
• Ewy and Gmitro (2009) “Process Management
in Education”
http://www.asq.org/quality-press/display-item/index.pl?item=E1352
“Six Sigma is a process improvement methodology used by
process managers to create breakthrough improvements.”
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Origin of Lean Six Sigma
Start
Year Author(s)
1920s Shewhart
1926+
Juran
1947+
Deming
1949
Ohno
1950+
Taguchi
Label
SPC
14
Points
TPS
Robust
Design
1950
JUSE
Deming
Prize
1951 Figenbaum TQC
Six Sigma Tool/Process
Unique Characteristics
Process Monitoring by Statistical Process Control
Top management is responsible for quality, improvement
projects, Pareto principle, etc.
Many lectures in Japan addressing: 1) management
responsibility 2) understanding variation
Toyota Production System (forerunner of Lean); uses
Kaizen teams, JIT inventory, flows, waste elimination &
cycle time reduction
Developed methods to make product and process designs
more robust to outside influences.
Award for best quality companies; Administered by
Japanese Union of Scientists and Engineers
Total Quality Control: uses company-wide approach of
methods from Deming, Juran, Cosby & Ishikawa
Lean Six Sigma Tools/Process
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Six Sigma Begins
Start
Year
1962
Author(s)
Ishikawa
1979
Crosby
1980
NBC
White
Paper
1984
U.S. Navy
TQM
1987
Bill Smith
Six
Sigma
Label
QC
Circles
Unique Characteristics
Quality Control Circles in Japan – employee groups
working on improvements using 7 statistical tools
Quality is Free book established concepts zero
defects goal & cost of nonconformance is large
Television documentary “If Japan Can, Why Can’t
We?” featured Deming and launched American
quality revolution. Many Deming lectures followed.
http://www.youtube.com/watch?v=GHvnIm9UEoQ
Total Quality Management company-wide approach
to quality: uses Deming, Juran, Crosby & Ishikawa
ideas. Based on many TQC principles.
http://www.youtube.com/watch?v=Pd_uRGy5RKY
Motorola CEO Bob Galvin launches Six Sigma
program. DMAIC problem solving addressing
defects and variability using projects involving small
teams focusing on internal processes
http://www.youtube.com/watch?v=UxCeeUqrfs4
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Lean Six Sigma Begins
Start
Year
1988
1988
Author(s)
Label
Krafcik
Lean
1993
1996
Mid
1990+
Lean
Six
Sigma
1999
2001
NIST
U. of WI
Stout
2005
Richland
College
Unique Characteristics
Motorola wins MBNQA
Sloan article “Triumph of the Lean Production System” based on
TPS principles.
http://www.youtube.com/watch?v=PQspf3q12mo
Allied Signal (Honeywell) CEO Larry Bossidy launches SS program
GE CEO Jack Welch launches SS program
Companies such as Allied Signal and Maytag combined two
improvement approaches TPS and Six Sigma.
MBNQA added Education and Health Care categories
Wins MBNQA in Education Category, graduate (8,000 students)
http://www.baldrige.nist.gov/PDF_files/UWStout_Application_S
ummary.pdf
Wins MBNQA in Education Category, 2 year (3500 students)
http://www.baldrige.nist.gov/PDF_files/Richland_College_Applic
ation_Summary.pdf
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Key Elements of Lean Six Sigma
1)
2)
3)
4)
Cost and Service Improvement Focus
Process Based Analysis with DMAIC
Project Based Organization
Team Oriented with Employee Training Levels
• White, Yellow, Green, Black Belt
• Master Black Belt, Champion
4) Data Driven with Key Measures Defined
5) Customer Satisfaction Measures
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Key Lean Six Sigma Tools
1) DMAIC Problem Solving Process
Define→Measure⇄Analyze→Improve→Control
2)
3)
4)
5)
6)
7)
Basic Data Analysis (7 statistical tools)
Process Mapping with Flows of Everything
Process Monitoring and Capability
Team Discussion Methods (7 mgmt tools)
Many Statistical Methods
Lean Flow and Cycle Time Focus
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Lean Six Sigma Improvement
Strategies
1) Defects – what is not done right the first time
2) Process Analysis and Simplification
3) Find and Optimize Process Key Measures that
impact cost/satisfaction. Cost improvement is
an outcome not the primary measure.
4) Rationalize Flows of Material & Information
5) Standardization of Work Methods
6) Error Proof Process Steps
7) Benchmark Similar Processes
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Six Sigma Assumptions
• All work is accomplished using a process.
• Every process has inputs (X’s) with outputs
(Y’s) which relate to customer satisfaction.
• Every process has value-added activities that
transform X’s to Y’s. The goal of a project is to
discover the critical X’s and optimize them to
obtain the best level of Y’s.
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Process Map Elements
Business Processes
Customer
Satisfaction
Management
Review
Document
Control
Quality
Objectives
Data
Control
Quality
Planning
Value Added Process
1) Translation of Req’mts 3) Combining Inputs
2) Processing Inputs
4) Organizational Records
Standard Operating Procedures
Purchase
Records
Personnel
Training
Communi
cation
Customer Satisfaction
Internal
Auditing
Output
Customer Requirements
Input
Corrective &
Preventive
Action
Process Flowchart Basics
• Six Sigma principle: All work in an organization is performed in
a process. See video: http://www.youtube.com/watch?v=J6Aqg7CKRa8
• Consequence: After defining targeted measures to improve,
the first step in improvement is detailed definition of
processes.
Step 1
Correct
?
Y M
Value-Added
Activity - 1
Start
M
M
Rework
Value-Added
Activity – 2A
M
Outputs
M
Customer
Use
Inputs
Data or Information
M=Measures
Process performance metrics
Counts, times, measures
Alternate
Path
End
Value-Added
Activity – 2B
M
M
Customer
Satisfaction
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Reviewing process for a student with new SAT / ACT scores
who has previously been reviewed
As Is March 01, 2010
Start
New SAT/ACT
scores
Total Processing Time: 25 days
System uploads scores to the file
Duration: 1 day
Number of scores received per
month 2010 : Jan: 2,028 SAT, 1,768 ACT
Feb: 387 SAT, 516 ACT
Scores operator downloads scores
into applicants ‘ files
Duration: 1 day
Scores operator generates report of
student files with new SAT/ACT
Duration: 1 day
Scores operator organizes and cleans
the report
Duration: 20 days
Scores operator gives report to
freshman entry operator
Duration: 1 day
freshman entry operator reviews the
file
Duration: 1-2 days
Student
Accepted
already
Yes
freshman entry operator reviews
Learning Support requirements
No
Score above
minimum
standard
Yes
freshman entry operator accepts
student
Acceptance Letter
End
No
Common Six Sigma Metrics
1)
2)
3)
4)
5)
6)
Defects per Time Period ( Items not correct the first time)
First Time Through - % of products/services with no changes,
adjustments, etc.
Rework - % of units in that require some change
Cycle Time – time required to complete a process
Wait Time – time customer waits for service
Yield – number units entering process versus number exiting
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Organizational Perspective
• What is the “Big Picture”?
• Are these activities interrelated?
Process Management
Improvement System – DMAIC
Team-Based Improvement Strategy
Data Based Key Measures
Customer Focus, etc.
• Is there a model to represent how the entire
organization might function?
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Criteria Framework: A Systems Perspective
Organizational Profile:
Environment, Relationships, and Challenges
2
Strategic
Planning
5 Human
Resource
Focus
7
Organizational
Results
1
Leadership
3
Customer
and Market
Focus
6
Process
Management
4
Measurement, Analysis, and Knowledge Management
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Historical Perspective
o Baldrige established in 1987 to recognize U.S.
organizations for quality and performance achievements
o Established as a diagnostic tool for self- and third-party
assessments
o 70+ nations have Baldrige-based award processes
o 40 states have Baldrige-based award processes
o Initial focus was on the manufacturing industry
o Currently many sectors: business, industry, government,
education, healthcare, and nonprofit
o
Video: http://www.baldrige.nist.gov/Video/Getting_Results/index.html
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Baldrige Education Winners
• Baldrige has adapted Performance Criteria to
education.
http://www.quality.nist.gov/Education_Criteria.htm
• U. Of Wisconsin – Stout : Wins MBNQA (2001) ,
graduate (8,000 students)
http://www.baldrige.nist.gov/PDF_files/UWStout_Application_Summary.pdf
• Richland College – Dallas, Texas: Wins MBNQA
(2005), 2 year (3500 students)
http://www.baldrige.nist.gov/PDF_files/Richland_College_Application_Summary.pdf
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Baldrige and Lean Six Sigma
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What is Georgia Oglethorpe
Award Process, Inc.?
• Public-private partnership (1997)
Mission –
Leading Georgia’s Organizations to
Improve Performance
Vision –
Georgia Outperforming the World!
• Modeled after the Malcolm Baldrige National
Quality Award Criteria and Award Process
•
http://www.georgiaoglethorpe.org/
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Three Step
Process
Baldrige Award
(For those eligible.)
Maturity and
Recognition
Options
Georgia
Focus
Recognition
Step 1
Georgia
Progress
Award
Georgia
Oglethorpe
Award
Step 3
Step 2
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Customer Service State Initiative
In 2006, Governor Sonny Perdue launched the
“Customer Service Improvement” initiative to assist
in achieving the goal of making Georgia the bestmanaged state in the country.
It was the Governor’s desire that this initiative serve
as both a catalyst and a vehicle to create a change in
our culture towards providing better customer
service across all areas of service in the state.
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• In coordination with the Governor's Customer Service Initiative,
Chancellor Davis mandated that every USG campus is to
implement a plan for improving customer service.
• Each institution has Customer Service Champion to
manage/promote the Governor’s initiative. KSU Linda Lyons
• Plans are developed each FY with identified units.
• Outline clear and measurable ways to track the campus'
progress toward improved customer service.
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BOR’S STRATEGIC PLAN: Goal Six: Increase efficiency,
working as a System
Challenge:
The USG will implement systematic process improvement efforts across the campuses
in order to promote effectiveness.
Action:
Establish a process improvement initiative.
Activities for Implementation:
• Implement a Lean Six Sigma training program.
• Implement process improvement efforts.
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KSU Unit Participation
The following units at Kennesaw have participated in the CS
Improvement Program:
The Office of Student Financial Aid – FY “07 “, “09”, “10”
Business Services and KSU Bookstore – FY “08”
Continuing Education – FY “09”
Plant Operations/ Facilities - FY “10”
Office of the Registrar - FY “10”
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KSU Awards/Recognitions
Chancellor’s
Service Awards
The
followingCustomer
units at Kennesaw
have participated in the CS
2007
Improvement Program:




Outstanding Customer Service Institution of the Year
Outstanding Customer Service Leadership Gold Award – Linda Lyons
Outstanding Customer Service Improvement Gold Award – Coles College of Business
Outstanding Customer Service Improvement Silver Award – New Hires Online Project
The Office of Student Financial Aid – FY “07 “, “09”, “10”
2008
Business Services and KSU Bookstore – FY “08”
 Outstanding Customer Service Institution of the Year
Continuing
Education
– FY–“09”
 Joseph Greene Champion
of the Year Award
Linda Lyons
 Outstanding Customer Service Improvement Bronze Award – KSU Bookstore
Plant
Operations/
Facilities
FY –“10”
 Outstanding
Customer Service Individual
Bronze -Award
Dr. Charles Aust
 Outstanding Customer Service Team Bronze Award – Enrollment Services Communication Center
Office of the Registrar - FY “10”
2009
 Outstanding Customer Service Leadership Award - Honorable Mention – Kim West, KSU Registrar
 Outstanding Customer Service Team Gold Award – KSU’s Customer Service Council
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Project Essentials
• Define is the first step in DMAIC. This is the most difficult
phase. It is said that “A well defined problem is half solved”.
• To assist in project definition a Project Charter can be used.
Template:
http://www.6sigma.us/user/Six%20Sigma%20Project%20Charter%20Template%20v1.doc
•
Key elements to start a project definition:
1)
2)
3)
4)
5)
Practical problem description and measures
Objective – What does success look like?
Scope with organizational boundaries
Time commitment authorized for each team member
Schedule for updates
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Research Topics in Six Sigma
Six Sigma Project Steps - DMAIC
1) Define
2) Measure
3) Analyze
4) Improve
5) Control
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Research Topics in Six Sigma
Six Sigma Project Steps - DMAIC
1) Define
Measurement Systems Analysis
2) Measure
MSA
3) Analyze
Accuracy
On Target
4) Improve
Operator Error
Reproducibility
5) Control
Repeatability
Gage Variation
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MSA Project Applications
1) Industry – What is diameter of an
oval hole?
2) Service (Business, Health Care, Government, etc.) …
• What is service quality?
• What are defects, service accuracy?
• What are Key Measures?
3) Education – Define measures for……
• Student Competency
• Effective teaching
• Stakeholder Satisfaction
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Traditional MSA – GRR Study
Gage Repeatability and Reproducibility (GRR) Study
MSA
Accuracy
Study Reference
Parts
Fixed Bias
Inference
Repeatability &
Reproducibility
Random Effects ANOVA for Parts
yijk = μ + Pi + Aj + (PA)ij + 𝝐ijk
Test for Reproducibility
Estimate % Tolerance:
Repeatability
Reproducibility
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New MSA
Gage Accuracy, Repeatability & Reproducibility (GARR)
MSA
Accuracy
Repeatability &
Reproducibility
Random Effects Model for Bias
bijk = β + Bi + Aj + (AB)ij +
1) Test for Reproducibility
2) Test for Random Bias
3) Test for Constant Bias
ijk
Estimate % Tolerance
Random Bias
Repeatability
Reproducibility40
GARR Summary of Results
1) Requires Reference Gage & Measurement
Operational Definition for “True” Measures
2) Obtains Traditional R&R Measures
3) Accuracy is estimated with three parameters:
constant bias, random bias & an interaction.
4) Meaningless F-test replaced by three bias
tests all in one-step model ANOVA
5) Much improved MSA diagnostic information
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Thank You!!
May your processes be productive
and satisfy your customers….
Question: “What do CSI, Oglethorpe and Six Sigma have in
common?”
Answer: ???
Process Focus!!
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