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