WWTS Interlock 2002 Presentation

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An Introduction
by
Habib Siddiqui, Ph.D.
saeva@aol.com
Have you noticed ?…
•US has lost 3.3 million manufacturing jobs during March 1998-2006 (before current
recession)
•Supply chains have lowered inventories by $4.6 trillion dollars
•Inquiries on your computer and phone accounts are often answered by outside call
centers
•Your tax return is completed in India
•Your Jet Blue reservation is taken by Betty in her house coat and slippers in Salt
Lake City
•Dad’s X-rays are read overseas at 2:00 a.m. while you are sleeping
•US share of scientific papers in the Physical Review Letters fell from 61% in 1983 to
29% in 2003
•Mama-papa stores are vanishing from neighborhoods at an exponential rate. 1/3 of
the US population shop in the Wal-Mart every week (Wal-Mart has 60,000 suppliers)
•Downstream customers and retailers are placing increasing focus on what goes
upstream: how things are made, framed, packaged, transported, displayed and sold
worldwide (Life Cycle Thinking)
“We need to be telling our kids to hurry up and eat and get to their homework there are kids in China and India who are starving for our jobs”
- Tom Friedman, The World is Flat
6s
Competitive Realities of Our Time
The Global Business Climate
• Fierce, global competition
• Accelerating pace of change
• New technologies
• Increasing customer demands - performance,
quality, price, “solutions, not products,” ...
Cost:
Speed:
Only low cost
providers will survive
Short product life cycles,
“e-business” mindset
Quality & Performance:
Higher expectations
6
This sentiment is echoed by a CEO…

“As we envision the environment in which pharmaceutical
companies will be operating in the years ahead, we believe
– and we’re hardly alone in this belief – that those
companies that develop competitively priced, novel
medicines that demonstrably improve the health and
wellbeing of patients will prosper.”
- Raymond Gilmartin, Merck & Co. [March 1, 2004]
6s
New Initiatives to Meet the Realities
Cost
Speed
Target Costing,
Globalization Lower Cost
Quicker
to Market
e-Engineering,
Lean Enterprise,
Streamlining SC
Higher
Performance
Better
Quality
Quality & Performance
Six Sigma, Design for Six Sigma, Lean Enterprise,
Stage Gate/NPI, Risk Management
6s
Why Six Sigma? – Dr Deming
“Eighty-five percent of the reasons for failure
to meet customer expectations are related
to deficiencies in systems and process…
rather than the employee.
The role of management is to change the process rather than
badgering individuals to do better.”
In other words, look for the root causes, not the “root who.”
6s
Suppliers
Inputs
(Business)
(Process)
Process
Outputs
(Critical)
Customer
(Requirements)
Defects
Root cause analysis
leads to permanent
elimination of defects
CCR
* LSL
*
USL
Output
Variation in the output from what
the customer wants causes defects.
Six sigma business improvement
starts with SIPOC
6s
The basic Six Sigma premise . .
 All processes
have variability
.

All variability has causes

Typically only a few causes are significant

To the degree that those causes can be understood
- they can be controlled

Designs must be robust to the effects of the process
variation

This is true for products, processes, services, information
transfer, everything . . .
. . .is that uncontrolled variation is the
enemy
6s
What is Six Sigma?
Six Sigma is a powerful set of statistical
and management tools and
methodologies that can create dramatic
increases in customer satisfaction,
productivity and shareholder value for
both service and manufacturing
companies/organizations.
 It is a disciplined methodology of
defining, measuring, analyzing,
improving and controlling the quality in
every product, process and transaction
– with the ultimate goal of virtually
eliminating all defects. (Jack Welch, GE)

6s
History of Six Sigma




Motorola (mid-’80s)
GE – under Jack Welch (mid-’90s)
Others doing it:
- Dow, Witco, DuPont, Rohm and Haas
- Ford, GM
- Johnson & Johnson, Merck (2000-01)
- Maytag
- Allied Signal (now Honeywell)
- 3M, Kodak, Corning
- any many others.
Average six sigma project saves $250M 
6s
Six Sigma: Philosophy
The Motorola School: (Show me the “Defect”)
Relentless Defect Elimination
– Find and Remove Existing Defects
– Prevent New Defects
The GE School: (Show me the “$$$”)
Relentless Pursuit of Financial Opportunities
– Identify High Impact Projects
– Use Six Sigma Methodology to Optimize the Process
– Visible Bottom Line Impact
6s
Reducing Defects and Improving Yield
• Defects & yield depend on
– Spec width (design requirement)
– Standard deviation (process variation)
i.e., on the Sigma Level
• Reduce defects and improve yields
by reducing process variation,
i.e., by reducing std deviation and
thereby raising the Sigma Level
Defects =
Area < LSL
LSL
s
Target
Defects =
Area > USL
USL
6s
Six Sigma : Measurement
Sigma
Level
% Good
Defective
ppm
2
3
4
5
6
69.15 %
93.32 %
99.379 %
99.9767 %
99.99966 %
308,537
66,807
6,210
233
3.4
Historic standard
20,000x improvement
New standard
6s
How Important is Quality?
If your water heater
operated at Four Sigma
performance, you’d be
without hot water more
than 54 hours each year.
At Six Sigma, you’d be
without hot water less than
two minutes a year!
If your goal was 99% quality, you'd still have:
 15 minutes of unsafe drinking water
every day
 2 unsafe plane landings per day at most
major airports
 20,000 pieces of lost mail every hour
 200,000 wrong drug prescriptions per
year
 5,000 incorrect surgical operations per
week
(Ref: Control Engineering, Jan. 1999)
6s
Sigma Levels of Some Activities
1000000
Ave US
Company
Defects / Million
100000
Tax Advice at
IRS Help Centers
Airline Baggage
Handling
10000
Restaurant
Bills
1000
Prescription
Writing
US Airline
Fatality Rate
100
World-Class
Quality
Companies
10
1
1.5
2
2.5
3
3.5
4
Sigma Level
4.5
5
5.5
6
6
The Cost of Variation – Taguchi Loss
Function
LSL
Nom
USL
Traditional View
Cost
Acceptable
LSL
Nom
Cost of Poor Quality – COPQ consists of those costs which are
generated as a result of producing
defective material.
USL
Where
LSL = lower spec limit
Nom = target
USL = upper spec limit
Cost
Correct View
CTQ
$ COPQ = k (CTQ – Target)2
COPQ is a financial measure of the user
or customer’s dissatisfaction with a
product’s performance as it deviates
from a target value.
6s
The High Cost of Poor Quality
Cost of
30%
Poor Quality
(% of Sales) 25%
Tangible Costs
• Inspection
• Scrap
• Rework
• Warranties
Intangible Costs
• Lost Customers
• Longer Cycles
20%
Avg. US
Co.
15%
10%
5%
0%
World-Class Co
6
5
4
3
Sigma Level
Enormous opportunity
2
6
The Focus of Six Sigma:
Fix Processes, Not Products
• Many quality approaches focus on inspecting and
fixing outputs (Y’s, e.g., products)
• Six Sigma focuses on fixing and controlling key
process variables (x’s) which cause output defects
Output Y= f (Process Variables x1, x2, …, xn)
x1, x2, …, xn
•
•
•
•
•
Inputs
Indep Variables
Root Causes
Problems
Fix & Control
Y
•
•
•
•
•
Output
Dep Variable
Effect
Symptom
Monitor
6s
Six Sigma Methodology
“Flavors”

Six Sigma Process Optimization (DMAIC)
 Manufacturing process
 Business/service/transaction process

Design for Six Sigma (DFSS)




new products
new processes
new services
Redesigning an existing product/service.
6s
Six Sigma DMAIC Methodology
Six Sigma
is
information
dependent.
D
Define what’s important
M
Measure how we’re doing
A
Analyze what’s wrong
I
Improve by fixing what’s wrong
C
Control to guarantee performance
6s
The Six Sigma Filtering Effect
Inexpensively, narrow in on fewer and fewer Variables, Saving more
“expensive” tools for when we have fewer Variables
All Possible Variables
Output Y= f(x1, x2, …, xn)
• Process Maps
MEASURE
ANALYZE
100+ Inputs
• Capability Study
• Measurement Study
• C& E Matrix
25 - 30
• FMEA
• Multi-Vari Studies
8 - 10
3-6
IMPROVE
• Design of
Experiments (DOE)
CONTROL
• Control Plans
Sustain-Certify
• Confirm Benefits
1-3
Critical Input Variables
$
$
6s
Define























Effective Meetings
Opportunity Analysis
Cost of Poor Quality
Asset Utilization
Financial Analysis
SIPOCC
Brainstorming
Nominal Group
Technique
Affinity Diagram
Check Sheets
Run Charts
Pareto
Histogram
Market Research
Survey
Focus Groups
Interviews
Kano Model
QFD
Decision Analysis
Matrix
Impact-Effort Analysis
Project Charter
Gantt Charts
Six Sigma Methodology Road Map
Measure
 Process Maps
 Cause and Effect
Diagram (Fishbone)
 Dot Plots

 Box Plots

 Scatter Plots

 Control Charts

 Process Capability
 Measurement

System Analysis

 Gage R&R

 P/T Ratio

 Discrimination Ratio 
 Multiple Subjective 
Evaluation

 Destructive Testing 








TOOLS:
Statistical
Non statistical
Analyze
Cause & Effect Matrix
Process / Product FMEA
Probability
Components of
Variation
Multi-Vari Analysis
Hypothesis Testing
Confidence Intervals
Test for Equal Variance
Correlation
Linear Regression
Multiple Regression
One-Way ANOVA
Two-Way ANOVA
Chi Square
Binary Logistic Regress.
Non-Parametric Tests
Value Analysis
Theory of Constraints
Discrete Event Sim
Is-Is Not Analysis
Improve
 Full Factorial DOE
 Fractional
Factorial DOE
 Power and
Sample Size
 Taguchi DOE
 Response Surface
Modeling
 EVOP
 Attribute DOE
 Mixture DOE
 Solution
Generation
 Simulation
 Piloting
 TRIZ
 Kaizen
Control












Design FMEA
Process Control Plan
CUSUM Charts
EWMA Charts
Control Metric

ISD Procedures
COPS / 5S

Visual Factory

Poka-Yoke
Implementation Plan
PERT Diagrams
Communication Plan
Sustain
Certify
Project
Translation
Documentation
Certification
6s
Six Sigma:
Conceptual Approach
Practical Problem
Statistical Problem
y  f ( x1 , x 2 ,..., x k )
Practical Solution
Statistical Solution
6s
When to Use Six Sigma

You have a performance gap in a process






Driven by the Business strategy
High Impact on $$ or Customers
Problems that “have withstood the test of time”
Root Cause is unknown
Solution is not known
You want a more robust solution
 In the past, solutions fail to “stick”
6s
Let’s be smart about this…
THEN
IF

You know the solution to your
problem / opportunity

Implement the Solution

You don’t know the solution but you
suspect others do


The impact solving the problem /
opportunity is small or not
strategically important.

Identify Best Practice and
Implement
.
Cancel the project
.
6s
Define


Daily Commute Problem
The employee John Doe lives nearly 25 miles away from his
workplace. He likes to come to work at 8 a.m. His average
commuting time is nearly 46 minutes and depends on many
factors. He rides a car that gives him approx. 20 miles/gal. With
high gasoline prices (costing ~$2.80/gal), he is reevaluating how
to best optimize his time and miles/gal in commuting to work.
How can we help John Doe with his problem?
6s
Define
I Chart for Commute_
70
UCL=69.25
Individual Value
60
50
Mean=45.72
40
30
LCL=22.19
20
0
50
100
Observation Number
Variable
N
Mean
Median
TrMean
StDev
SE Mean
Commute_
100
45.720
46.000
45.711
7.716
0.772
Variable
Minimum
Maximum
Q1
Q3
Commute_
24.000
66.000
40.000
51.000
6s
Define


What are the CTQs and COPQ?
CTQs:
- Commuting time (defn: time between leaving home and
arriving in office)
- MPG
COPQ:
- Internal: $100M/yr (lose job) plus price differential in
gasoline purchase
- External: $1MM (company)
6s
Measure


What are the variables that affect
these outcomes?
Where to start to identify variables?
- Process Mapping
Process Mapping involves
- Identify steps
- Input variables
- Types of input variables (controlled or uncontrolled)
- Outputs
6s
Inputs
Variable
Type
Wake-up time
Go to bath room
Dress up
Get the keys
Get the office badge
Have breakfast
Carry bag to car
Lock the house door
C
C
C
C
C
C
C
C
C
Open the car door
Put the seat belt
Start the car
Move car from driveway to road
C
C
C
C
Roads/routes
Time of the day
Day of the week
Traffic condition
Weather
Season of the year
Gasoline in car
Type of gasoline
Tire pressure
Condition of tire
Condition of engine
Speed of driving
C
C
C
U
U
C
C
C
C
C
C
C
Find Parking spot
Stop the car
Walk out from parking
Open the door to building
Walk to office
Turn on the office light
Switch on the computer
U
C
C
C
C
C
C
Measure
Process Map
Home
Activities
Car Start-up Activities
Outputs
Looking good
Well-fed
Well-prepared
Safety
Elapsed time for home activities
Safety
Drive
Road
Activities
Parking/Arrival
Milage per gallon
Commuting time
Park
Milage per gallon
Reach the office
Arrival time
6s
Measure

Which of these 31 variables are the
potentially important ones?
How important are the CTQs?
 Commute Time: what is desirable? – max. 50 min
 MPG: what is desirable? – 30 mpg

How do we prioritize the input variables?
- Use Cause & Effect matrix to find causal relationship.
- Use a scale of 0 (no), 1 (minor), 3 (moderate) and 9 (major
relationship).
6s
Rating of Importance to
Customer
3
4
Traffic condition
Wake-up time
Go to bath room
Dress up
Car Keys
Office Badge
Have breakfast
Carry bag to car
Lock the house door
Open the car door
Put the seat belt
Start the car
Move car from driveway
to road
Roads/routes
Time of the day
Day of the week
Speed of driving
Weather
Season of the year
Gasoline in car
Type of gasoline
Tire pressure
Condition of tire
Condition of engine
Find Parking spot
Stop the car
Walk out from parking
Open the door to
building
Walk to office
Turn on the office light
Switch on the computer
C
C
C
C
C
U
C
C
C
C
C
C
U
C
C
C
C
C
MPG
1
1
15
9
9
3
9
3
1
3
1
9
3
3
3
1
1
9
9
3
9
9
3
1
9
9
3
3
1
1
0
135
135
45
135
75
25
35
55
135
45
45
35
15
10
3
0
30
1
0
0
0
10
0
0
0
0
Lower Spec
15 395
135
90
10
10
30
90
10
10
10
10
30
10
Target
Upper Spec
30
9
0
0
0
0
0
0
0
0
0
0
0
0
C
9
9
1
1
3
9
1
1
1
1
3
1
50
Parking
U
C
C
C
C
C
C
C
C
C
C
C
Total
Total
0
Parking
Parking
Parking
2
0
Car Start-up Activities
Road Activities
Road Activities
Road Activities
Road Activities
Road Activities
Road Activities
Road Activities
Road Activities
Road Activities
Road Activities
Road Activities
Parking
Parking
Parking
1
Process Inputs
Type of
variable,
controlled or
uncontrolled
Road Activities
Home Activities
Home Activities
Home Activities
Home Activities
Home Activities
Home Activities
Home Activities
Home Activities
Car Start-up Activities
Car Start-up Activities
Car Start-up Activities
5
Commuting
Time
Process Step
10
1030
Measure
6s
Sp oad
ee s/r
T r d o out
af f d es
fic riv
i
O co n n g
Ty ffic dit
pe e B i on
C of adg
on ga e
d i so
G tio lin
M O
as n
e
ov pe
ol of
e
in tir
e
ca n th
e
in
rf e
ro do Ca ca
m or r K r
dr to e
ive b ys
u
G wa ild
o
y i
to to ng
Lo Ha bat roa
ck ve h r d
t h br oo
e ea m
ho k
us fas
St e t
Sw
a d
itc W rt t oo
h
a h r
on lk e c
th to o ar
e
co ffice
m
pu
te
r
R
Measure
Total
160
140
120
100
80
60
40
20
0
6s
Potentially important Input
Variables are:
Process Inputs
Type of
variable,
controlled or
uncontrolled
Road Activities
Road Activities
Road Activities
Road Activities
Road Activities
Home Activities
Home Activities
Road Activities
Road Activities
Roads/routes
Time of the day
Speed of driving
Tire pressure
Traffic condition
Wake-up time
Office Badge
Weather
Type of gasoline
C
C
C
C
U
C
C
U
C
MPG
Process Step
Commuting
Time
Measure
Total
9
9
135
9
9
9
9
9
9
3
1
9
9
9
9
0
0
9
9
135
135
135
135
90
90
75
55
6s
Analyze





Further narrow down of variables
Use Failure Modes & Effects Analysis (FMEA)
Rate for severity, S (1=min, 10=max)
Rate for occurrence, O (1=least, 10=most)
Rate for current control/detection, D (10=none,
detection)
Risk Priority Number, RPN= SxOxD
1=certain
6s
Route taken
Took surface roads
Takes longer time
5
Time of the day
Time of the day
Rush hour (left home after
7 a.m.)
Takes too long
Rush hour (left home after
7 a.m.)
Takes too long
Traffic Condition Bad
Too many stop signs; did not
carry cash (can't pay toll)
Trash collection day
9
Stranded, takes longer
Speed
Speed
Tire pressure
Office badge
Wake-up time
Low speed driving
Gaper delay
High speed driving
Low pressure
Missing badge at work
Woke up after 6 a.m.
Takes too long, consumes
more gasoline
9
Takes less time, but can get
ticketed
9
Consumes too much
gasoline, can also get flat thus requiring repair
9
Go to guard house and sign
up for a temporary badge
4
Traffic condition is bad
Wake-up time
Woke up after 6 a.m.
Lack of inspection
Wake-up time
Woke up after 6 a.m.
Weather
Snow or rain
Late to work
Type of gasoline Low octane
Consumes more gasoline
Analyze
27
1
18
2
36
10
80
1
10
1
30
1
Healthy living, good diet; alarm
clock
2
20
10
360
None
4
Savings per gallon
2
1
Wall clock, spousal complain;
alarm clock
Nature/seasonality
9
140
3
Sick
10
10
Alarm clock
Went to sleep very late
Late for work
140
None
2
1
10
10
Visual
2
Alarm did not work
Late for work
27
Speedmeter in car
2
10
1
Speedmeter in car
3
Less traffic
Late for work
81
None
2
Misplacement of badge at
home, forgot
1
None
2
7
40
Weekly event
3
Accident on the way
Stranded, takes longer
2
Clock, watch
9
7
Traffic Condition Bad
Road map
4
Too much traffic on the road
9
What are the existing controls
and procedures (inspection and
test) that prevent either the cause
or the Failure Mode? Should
include an SOP number.
How well can you detect
cause or FM?
What causes the Key Input to
go wrong?
How often does cause or
FM occur?
In what ways does the Key What is the impact on the
Input go wrong?
Key Output Variables
(Customer Requirements) or
internal requirements?
How Severe is the effect
to the cusotmer?
What is the
process step/
Input under
investigation?
Gas pumps
9
6s
1
18
Weather
Snow or rain
Late to work
Nature/seasonality
9
Traffic Condition Bad
Stranded, takes longer
Accident on the way
Stranded, takes longer
Office badge
Route taken
Tire pressure
Wake-up time
Rush hour (left home after
7 a.m.)
Takes too long
Gaper delay
Missing badge at work
Go to guard house and sign
up for a temporary badge
Took surface roads
Low pressure
Woke up after 6 a.m.
Too much traffic on the road
Misplacement of badge at
home, forgot to bring
5
Too many stop signs; did not
carry cash
Takes longer time
Consumes too much
gasoline, can also get flat thus requiring repair
Late for work
Time of the day
Speed
Wake-up time
Rush hour (left home after
7 a.m.)
Takes too long
Low speed driving
Takes too long, consumes
more gasoline
Woke up after 6 a.m.
Trash collection day
High speed driving
Type of gasoline Low octane
Takes less time, but can get
ticketed
Sick
1
Less traffic
Conumes more gasoline
Wake-up time
Woke up after 6 a.m.
Analyze
80
2
40
2
36
1
30
1
27
1
27
2
20
1
18
1
18
Gas pumps
9
Alarm did not work
10
10
Speedmeter in car
Savings per gallon
Late for work
Healthy living, good diet; alarm
clock
2
2
81
Speedmeter in car
3
9
1
Weekly event
Traffic condition is bad
Late for work
Wall clock, spousal complain;
alarm clock
3
9
140
Visual
3
10
Speed
4
Went to sleep very late
9
10
Road map
2
10
140
None
2
Lack of inspection
9
10
Clock, watch
9
4
360
None
2
9
10
None
2
7
Time of the day
None
4
7
Traffic Condition Bad
What are the existing controls
and procedures (inspection and
test) that prevent either the cause
or the Failure Mode? Should
include an SOP number.
How well can you detect
cause or FM?
What causes the Key Input to
go wrong?
How often does cause or
FM occur?
In what ways does the Key What is the impact on the
Input go wrong?
Key Output Variables
(Customer Requirements) or
internal requirements?
How Severe is the effect
to the cusotmer?
What is the
process step/
Input under
investigation?
Alarm clock
1
6s
1
10
Analyze
Input Variables
Traffic Condition
Weather
Time of the day
Speed
Route taken
Wake-up time
Type of gasoline
Tire pressure
Office badge
RPN
140
108
27
27
20
20
18
9
8
Type
U
U
C
C
C
C
C
C
C
6s
Process
Step/Input
What is the
process step/
Input under
investigation?
Weather
Traffic Condition
Potential Failure Mode
Actions
Recommended
Resp.
In what ways does the Key
Input go wrong?
What are the actions
Who is
What are the completed
for reducing the
Responsible for
actions taken with the
occurrance of the
the
recalculated RPN? Be
Cause, or improving
recommended
sure to include
detection? Should
action?
completion
have actions only on
month/year
high RPN's or easy
fixes.
Snow or rain
Can't do much;
uncontrolled event
God
Can't do much;
uncontrolled event
God
Bad
Traffic Condition
Bad
Can't do much;
uncontrolled event
God
Time of the day
Rush hour (left home after
7 a.m.)
Leave before -7 a.m.
Employee
Office badge
Missing badge at work
Put it near eye-glass
or inside bag
Employee
Route taken
Took surface roads
Take Freeway/TPk
Employee
Tire pressure
Wake-up time
Time of the day
Speed
Wake-up time
Speed
Type of gasoline
Wake-up time
Actions Taken
Low pressure
Woke up after 6 a.m.
Rush hour (left home after
7 a.m.)
Low speed driving
Woke up after 6 a.m.
Check tire pressue
upon arrival at home
and before start-up
Go to sleep before 11
p.m., use alarm clock
Employee
Leave the trash for
pick-up the previous
night
Employee
Employee
Leave home early, watch
weather report
S
E
V
O
C
C
D
E
T
R
P
N
9
4
3
108
7
2
10
140
7
2
10
140
9
3
1
27
4
2
1
8
5
2
2
20
9
1
1
9
10
2
1
20
9
1
1
9
9
3
1
27
10
1
1
10
9
2
1
18
2
9
1
18
10
1
1
10
Hope
Hope
Leave between 6:40-7
a.m.
Put inside attache/bag
Take Freeway/TPk
Check tire pressue upon
arrival at home and
before start-up
Go to sleep before 11
p.m., use alarm clock
Leave trash for pick-up
on Sunday
Exercise 2 days per
week, periodic medical
checkup
High speed driving
Low octane
Woke up after 6 a.m.
Analyze
6s
Experiment with new procedure to check hypothesis
I Chart for New_Time
Individual Value
50
UCL=49.60
40
Mean=35.39
30
LCL=21.18
20
0
50
100
Observation Number
Variable
N
Mean
Median
TrMean
StDev
SE Mean
New_Time
100
35.390
36.000
35.456
4.788
0.479
Variable
Minimum
Maximum
Q1
Q3
New_Time
24.000
46.000
32.000
38.000
Improve
6s
nt
Improve
6s
Gas Mileage per Gallon




Initial gas consumption = 20 mpg
Desire to get better mileage
Key input variables for MPG are
- gasoline octane rating
- tire pressure
- driving speed
Full Factorial DOE with 3 variables @ 2 levels would
require: 2x2x2 = 8 experimental runs.
Improve
6s
Improve
Full Factorial Experiment
Problem: Gas Mileage is 20 mpg
Speed
55
65
55
65
55
65
55
65
Octane
85
85
91
91
85
85
91
91
What conclusion do you make now?
MPG = f(Speed, Octane, Tire Pressure)
Tire Pressure Miles per Gallon
30
25
30
23
30
27
30
23
35
27
35
24
35
32
35
25
Do we think 32 is best?
6s
Control Plan








During rainy and winter seasons: leave home early,
watch weather report before leaving home.
In normal times: Leave between 6:40-7 a.m.
Put office badge inside wallet
Take Freeway + Turnpike whenever possible
Check tire pressure upon arrival at home and before
start-up
Go to sleep before 11 p.m., use alarm clock to get up
on time.
Leave trash for pick-up on Sunday evening
For best mileage: ensure tire pressure @35 psig, drive
@ 55 mph, and use 91 octane rating gasoline.
Control
6s
Cost Of Poor Quality over the product
life cycle (from lab to customer)
Most current six sigma effort is here
We ought
to do here
R&D/
Discovery, Preclinical
Defects
are:
Pilot plant/
Production/ Customer
Clinical I-III Commercialization
Difficult to see/predict
Easy to fix
Easy to see
Costly to fix
May lose customers
We need a paradigm shift in how we do things: from reactive to predictive mode.
6s
Why DFSS?
D-M-A-I-C has been around for over 10 years, but…
» Six Sigma Practices in Manufacturing is Not Enough
» Cannot Produce a Six Sigma Product via Mfg Alone
Up to 4.5s
Achievable via Mfg Improvements
4.5s -> 5s
Law of Diminishing Returns in Mfg
The “5s Wall”
5s -> 6s
Requires Product Designed for 6s, DFSS
Customers don’t care about the Mfg Processes
Customers want Product Performance, Reliability & Durability
6s
Underlying Truism: Knowing what the customer
needs
We don't know what we don't know,
we can't act on what we don't know,
we won't know until we search,
we won't search for what we don't
question,
we won't question what we don't measure,
and hence we just don't know.
6s
Customer Service 101: Know what
is “good” to your customer … (VOC)
Ichiro Ishikawa:
“When I ask the designer what is a good car, what
is a good refrigerator and what is a good synthetic
fiber, most of them cannot answer. It is obvious
they cannot produce good products.
You simply cannot design a good product or
service if you do not know what “good” means to
the customer.
The designer must create a map that moves the
world of customer to the world of the designer”
6s
Customers: how important are they?


Customer loyalty for strategic partners is very
important. Keeping an old customer happy is
more fruitful than finding a new one. (It is easy
to retain five satisfied customers than to find a new one.)
One happy customer tells three people, 1 unhappy
customer tells 20.
6s
Voice of the Customer
Customer Satisfaction = f( Perception, Expectation)
Level 1 : Features and Cost
Level 2 : Quality
Level 3: Features, Cost, Quality, Delivery,…. Value added
3
2
1
Customer value =
Higher
Quality
x
Lower
Cost
x
Better
Service
Less
Time
6s
Kano Model (a 2-d concept of quality)
Satisfied
Poor performance
Good performance
With Time
Dissatisfied
6s
And we often do ….
 Insane things.
Insanity (definition):
Continue to do things we have always done
and yet expect to get different results.
6s
DFSS Overview: Alternative Roadmap
A Specific Product Design Methodology where Customer Requirements
Dictate the Critical Parameters and the Variability of the Critical
Parameters are Optimized for Predictive Product Performance,
Manufacturability, Reliability and Durability.
Customer Requirements Based on Expectations,
a.k.a: Voice of the Customer (VOC)
Define
Marketing
Design
Optimize
Validate
Critical-To-Quality (CTQ) Parameters, Set
Technical Requirements & Quality Targets
Concept Design, Develop Transfer Functions
between CTQ’s and Design Spec’s… Y=f(x)
Analyze & Optimize for Robust Performance,
Predictive Manufacturability, and Reliability
Test & Validate Predictions, Assess
Performance, Initial Capability Studies
Understand/Control Variations
Identify
Statistical Thinking
Science/Engg.
6s
What’s Different About DFSS?
 Disciplined, comprehensive process
 Line of sight from
customer CTQs to all design levels
 Statistical design to understand
and reduce variation
 “New” tools:
QFD, DOE, Robust Design, DFM, statistical
tolerancing, multi-variable optimization, ...
 Quality prediction throughout development
6s
Integrating DFSS with Stage-Gate/NPI
Tollgates
1
Marketing &
Concept Design
DFSS Elements
Product • Business needs
Specs
• Mkt reqts
NPI Stages
2
Preliminary
Design
• Preliminary
product specs
3
Detailed
Design
CTQs
• QFD 1:
Customer CTQs
to tech reqts
• QFD 2:
Reqts
process
to part specs
• CTQ estimates
Systems
Eng
• System
concept
• Functional
block diagram
• CTQ flowdown
• Subsystem
reqts & transfer
functions
• Improved
transfer fcts:
eng analysis
& DOE
Design
for Prod
• Prelim perf
based on
subsystem specs
Technical
process
& initial tests
• Tech feasibility
assessment
DFSS:
how product
is designed
• Prelim mfg reqts
• Mfg process
concept
Quality
Prediction
• Quality
targets
DFSS:
Identify
• Key process
capability data
• Initial Z
allocations &
scorecard:
opinion, entitlement
Design
Prototype
& Test
5
Mfg
Preparation
• Rev 1
• Rev 2
• Alpha
drawings Bus/mgt
drawings
drawings
Stage-Gate/NPI:
• Customer
CTQs
Design
for Perf
4
• First
piece
for
new
product
dev
• Final
system
CTQ
verification
CTQ
verification
• Prototype
confirmation
• Model
validation
• System &
component
qualifications
• Alpha
test
• Improved perfRows:
• Pilot run
Progressive
performance performance
based on eng
refinement
of DFSS elements
verification
verification
- analysis & tests
• Tolerancing
• Final mfg
• Tooling
• Proc capability
reqts
procurement
Columns:
Items
required
compatibility
• Supplier qual
for tollgate review
• Updated
scorecard:
prediction,
capability data
Optimize
• Scorecard
verification
• Product Z
estimates
Validate
6s
Lean
Chairman Cho of Toyota: Three
Keys to Lean Leadership
Fujio Cho, Chairman of Toyota Motor Corp.
 Go See
 “Senior Management
must spend time on
the front lines”
 Ask Why
 “Use the “Why?”
technique daily”
 Show Respect
 “Respect your
people.”
Reproduced with permission of John Shook, Lean Enterprise Institute
6s
Lean Methodology
Identify the
Value Stream
Specify Value
A Simple, Intuitive
Approach!!
Flow
Pull
Perfection
Focus on Value from the eyes of the customer (VA and NVA activities)
Eliminate waste (Muda)
Reduce cycle time / increase speed
In lean design – create flow and value for the customer / minimize waste
Reference: Lean Thinking, J. Womak and D. Jones, 1996
6s
Value Add vs. Non-Value Add
Type of Process Step
Definition
Action
Value Add (VA)
Transforms or shapes a product/service
which is eventually sold to a customer
Identify
Non-Value Add (NVA)
Take time, resources, or space but do
not add value
to the product or service
Eliminate or redesign
Business Value Add (BVA)
Not seen as valuable by the customer,
but required in order to complete the
process
Remediate or Continuously
improve
6s
What is Waste?

Activity that consumes resources without creating value for the
customer

Unevenness in a process (“Hurry up and wait”)

Overburdening people or equipment
6s
7 Types of Waste
Searching for information
Slow decision making
Multiple data bases
Late sales material
Motion
Waiting Time
Excess
promotional
Processing
Multiple sign
offs
Types
Of
Waste
Inventory
Over
forecasting
Transportation
Over design of
packaging
Defects
OverProduction
Returns
Unnecessary Warehousing
Incoming material
rejects
Multiple handoffs
Expired, unused
promotional materials
TIMWOOD
material
6s
Some Drivers of Waste
Sea of Excess Transactions, Staffing, Capital
Many
Hand-offs
Lack of
Training
Poor
Scheduling
Poor
Quality
Poor Access
To Data
6s
A Lean Roadmap
Strategy
Deployment
• Link
•
company
strategy to
lean
initiatives
ID &
Select Key
Processes
Project
Charterin
g
Understandi
ng As-Is
• Determine • VOC
Develop
the type of • VOP
plan to
identify key event and
resources • CM
value
required
streams to
be
addressed
Plan Event /
Design
Future State
• Train
participants
Implement
Improveme
nts
• Plan for
improvements
Project
Closure
• Transfer
knowledge
• Generate
• Conduct
Current State • Track results
events
• Identify
opportunities
• Drive for
results
• Create Future
State
6s
Project Selection Guideline
New Process/
Business/Product/Service?
DFSS
Yes
Yes
No
Improve Process/ Business/ Product/
Service by reducing standard deviation and
shifting the mean?
Needs redesign because of
reaching entitlement?
No
DMAIC
Yes
No
Reduce Waste in
Process/Business/Product/Service?
Lean
Yes
No
Just do it!
6s
Which Problem Solving Method? –
Another Look
If You Are Experiencing . . .
You probably need . . .
• Unacceptable time to get things done
• Large amounts of waste/wasted effort
Lean
• High, unexplained variation in key metrics
• Lack of optimal settings for process X’s
DMAIC
• A current design that cannot achieve desired result
• No current design at all (clean sheet)
DFSS
6s
Practical Statistics
 The long-range
contribution of statistics depends
not so much upon getting a lot of statisticians
into industry as it does in creating a statistically
minded generation of physicists, chemists,
engineers, and others who will have a hand in
developing and directing the production
processes of tomorrow.
– W. A. Shewhart and W. E. Deming (1939)
6s
Six Sigma …
The right projects
+
The right people
+
The right roadmap and tools
+
The right support
=
The right results
6s
Business Results of Using Six Sigma
6s
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