Six Sigma DMAIC Training (excerpts)Presenter: Bruce Berger (386) 852-9054 BergerConsulting@aol.com

Six Sigma is a proven methodology that will help us improve our work in order to consistently ensureOur products and services meet (or exceed) customers needsOur Processes are cost-effectiveDBS employees are well-trained and motivatedState and federal statutory requirements are metWhy do we need Six Sigma?Six Sigma Overview

A philosophy for systematically improving quality, and therefore efficiency.A standard of performance equal to 3.4 defects per million outputs (i.e. near perfection).Most operations are about 2.8 sigma (100,000 defects / million).Very good operations are about 4 sigma (3,500 defects / million).

What is Six Sigma?Six Sigma Overview

1) Providing Customer Satisfaction through the total involvement of ALL employeesMaking Line Graphs move in the direction you want them to go.Six Sigma is all about2)Or put another wayLine Graphs Help Us Understand Our PerformanceSix Sigma Overview

GOOD

Target

Customer Satisfaction

Year

We know were Successful when Our costs for doing business are the lowest possible. Our customers tell us that they are pleased with our services.% Customer SatisfactionSix Sigma Overview Our Employees are efficient. Our Services are Delivered On-Time.

Moving line graphs requires efforts in three (3) areasProcess Management helps us maintain good results as we perform our Mission.Strategic planning helps us focus on key projects to reach our Vision.Process Improvement using the DMAIC process helps us fix work problems and improve our Performance.To be successful as an organization, we must learn how to effectively apply ALL three (3) areas. Six Sigma OverviewTodays training will overview the DMAIC process.

Strategic Planning

Process Improvement

ProcessManagement

Six Sigma

Process Improvement utilizes a 5 step problem solving DMAIC process:2) Measure5) Control4) Improve1) Define3) AnalyzeDMAIC 5 StepsDMAIC Overview

GOOD

Text

Body Begin / End

Body

Decision

Display Problem ...

WHAT

WHERE

WHEN

WHO

OUTCOME

Stratify Problem ...

1. Define

2. Measure

3. Analyze

4. Improve

Results

Standardization

Future Plans

Checksheetor Spreadsheet

Line Graph

Month

Target

GAP

%

Histogram

n=63

21 Late

n=21

Pareto

B

C

A

D

PROBLEM STATEMENT

Identify & Verify Root Cause ...

Identify & Implement Countermeasures ...Countermeasures Matrix

Single Case Bore

Contingency Table

FISHBONE

REASON/FACTOR

A

B

C

1

CASE

2

3

4

5

APresent

AAbsent

Effect

Cause

Problem

No Problem

35

3

4

25

A

Scatter Diagram

Cause "C"

Effect

B

EFFECT

PROBLEM STATEMENT

ROOT CAUSE

A

C

A1

A2

C1

C2

4

4

16

Y

5

4

20

Y

3

1

3

N

EFF

FEAS

OVRL

ACTN?

3

2

6

N

CM

BARRIERS

AIDS

High

A1a

A1b

HOW

WHO

1. Dev2. Impl

WHEN

CONTROL CHARTS

FLOW CHART

LESSONS LEARNED

WHAT'S NEXT?

%

CM IMPL'M

Target

Standard

Action Plan

5. Control

4. Improve

Lets look more closely at the two important tools used in Define.The objective of step 1 is to Demonstrate the importance of improvement needs in measurable terms.DefineMeasureAnalyzeImproveControlDMAIC Overview Step 1: Define

GOOD

Text

Display Problem ...

WHAT

WHERE

WHEN

WHO

OUTCOME

1.Define

Checksheetor Spreadsheet

Line Graph

Month

Target

GAP

%

MS Excel is used to construct unique spreadsheets to record data for analysisSpreadsheets segment information into four key sections:Demographics (contain who, what, where or when--information about the process)Milestone Dates (key completion dates/times of steps in the process)Durations (Performance Results calculated from the milestone dates automatically)Outcomes (Performance results of the process)Data collection can be either manual or downloaded from existing systems Can be used for ongoing monitoring of process performance after the project is completedStep 1: Define - Spreadsheet Tool

Step 1: Define - Line Graph ToolUsed to display performance trendsRelates performance to a target that is established by either customers or the businessDisplays the Gap between the observed performance and the targetGap

DMAIC Overview Step 2: MeasureLets look more closely at two important tools used in Step 2: MeasureThe objective of step 2 is to Investigate the features of the indicator, stratify the problem and set a target for improvement.

Stratify Problem ...

2. Measure

Histogram

n=63

21 Late

n=21

Pareto

B

C

A

D

PROBLEM STATEMENT

Standard

Step 2: Measure Histogram ToolMS Excel and QC Tools software used to construct graphFits data into a frequency distributionCan show upper and lower specification limits and denote data that falls outside those limits (the area on which the story should focus)Used for data breakdowns by hours, minutes, dollars, etc.

Step 2: Measure Pareto ToolMS Excel and QC Tools software used to construct graphsTool used to rank data by groups from the group that contains the most data points to the group that contains the fewest data points.Look for a large bar or young mountain

Team Operations and Group DynamicsThe following are a few dynamics that all teams need to be successfulP-A-L (Purpose Agenda Limit)Parking LotRecognition4 Stages of Team GrowthConsensus and BrainstormingRules of Conduct

P-A-LWhat Is An Effective Meeting?Because organizations spend 7.15% of their personnel budgets, 35% of middle management's time, and 60% of top management's time in meetings.Why Are Effective Meetings Important?An effective meeting is a meeting:which is necessary.which includes all individuals required to accomplish the intended PURPOSE.which covers the AGENDA*.where people know what is expected of them.

P-A-L (Cont.)What Is An Effective Meeting? (Cont.)An effective meeting is a meeting:where the real issues are on the table and being dealt with and where most hidden agendas are legitimized and surfaced for discussion.where decisions and commitments are made, plans are developed, problems are solved.where people leave knowing what was accomplished and what they are to do.which meets its intended PURPOSE*.which respects people by starting and ending on time (LIMIT*).

P-A-L (Cont.)When Are Meetings Needed?Meetings are useful:for group problem solving.for sharing information or advice.for building commitment to a common goal.for addressing problems or issues that involve a number of people.for planning.for defining accountability and responsibility.for group decision-making.

P-A-L (Cont.)How Are They Created?Send a draft of the agenda. The person calling the meeting should send out information on the agenda so that the purpose, time frames and topics are clear before people come to the meeting.

Start the meeting on time.

Revise and agree on an agenda. Add agenda items suggested by others attending the meeting, as appropriate. Finalize and agree on the agenda.

Agree on ground rules.

P-A-L (Cont.)How Are They Created? (Cont.)Encourage active participation from all members.

Choose a process facilitator. To ensure an effective meeting, someone needs to take responsibility for managing the process portion of the meeting.

Focus the discussion. Clarify and summarize as necessary to facilitate mutual understanding of perspectives and ideas.

Decide how to decide. Determine how decisions will be made in the meeting - by consensus, by multi-voting, by majority voting, or by the team leader.

P-A-L (Cont.)How Are They Created? (Cont.)

Address all items raised. Insure that all items raised are addressed by the end of the meeting and that the person who raised the item knows what the next step will be, specifically.

Check with the person who raised the issue to ensure they know what needs to happen next to get the issue addressed and that the proposed plan meets their needs.

Parking LotParking Lot is a strategy for recording and postponing items raised during a meeting. Create a side list of items to be addressed later. Before the meeting adjourns, review ALL "parked" items and decide:

whether this group will address the item or refer it elsewhere, and if the item will be addressed by the group, decide when and how it will be addressed - (e.g., agenda next meeting, assign).

communicate decisions to the person who raised the item.

Parking Lot (Cont.)Summarize results, agreements, and next steps. Acknowledge agreements. At the close of the meeting review the decisions and agreements and other accomplishments that happened in the meeting, and review the next steps. WRITE IT ALL DOWN! Acknowledging and celebrating what was accomplished at a successful meeting gives people a sense of progress, and rewards them for the time and effort the meeting required. It also encourages them to work to make the next meeting productive.

End the meeting on time.

RecognitionTwo major forces help drive Quality Improvement. These are:Personal satisfaction from participation in the process and the knowledge that you can make constructive changes in your work environment, which help meet the needs of the customer.External recognition, which honors those who contribute to quality improvement.The purpose of recognition is to formally acknowledge the accomplishments of teams or team related activities.

Recognition (Cont.)Recognition is meant to be a "Win-Win" situation, but it is often difficult to implement in a way that everyone perceives it as such. Teams should recognize that successful long-term recognition is most applicable on a local level. Peer recognition and recognition by your local management have a more direct, lasting impact.

Team GrowthWhen small groups of people come together for the first time or when other events occur, these groups are said to be in transition and will undergo some predictable phases of team change or growth. A corresponding change in individual comfort levels brings tension and a sense of uneasiness to the whole team.

The net result is usually some form of undesired or dysfunctional team behaviors. An awareness of these stages of group development and their related behaviors is important, especially for people leading teams in transition. The transition can be triggered by numerous events, including:A small group coming together for the first timeChanging team leaders on an existing teamMember turnoverAn unexpected surprise visitor sits in with the team

Team Growth (Cont.)Stage I: Form: This is where the group comes together either for the first time or after being apart for long periods.

Stage II: Storm: This phase is characterized by intra-team conflict as members become more familiar and more comfortable with the team environment. They take more risks, and often begin to become competitive with each other.

Body

top / side

form

storm

norm

perform

Team Growth (Cont.)Stage III: Norm: This phase is typified by the development of team cohesion. After all the conflict of phase II, the members begin to recognize and accept the team norms, their roles and the pecking order established in stage II. The personal "quirks" of other members also become accepted, or at least better tolerated and torn relationships get patched back up.Stage IV: Perform: This is when the team really begins to operate smoothly like a well-oiled machine. Members now know one another well; they freely depend on each other for support and can thus focus on solving the problem and objective decision-making instead of each other.

Body

top / side

form

storm

norm

perform

Team Growth (Cont.)What Does This Mean To You?Because the Form, Storm and Norm stages of group development result in less than optimum output, teams often try and push through these phases before their chemistry is ready to move on in order to improve team productivity.

This might seem like a good idea, but it is really dysfunctional.

It is natural for people to go through predictable phases of growth depending on maturity, experience, and other factors. It is natural for teams to do so too. They must go through these predictable phases as they mature and gain experience with each other and the DMAIC Story.

Team Growth (Cont.)What Does This Mean To You? (Cont.)The duration of each phase depends on individual and team maturity, task complexity, leadership, and the sponsor's support.

While it is natural that teams go through these stages some teams can get stuck in different stages. Given that the stages are unavoidable, an idea to consider to help reduce the time needed for a "team in transition" to go through the stages and be fully productive, is to share expectations about the group and its preferences and direction.

Specifically, the team can establish (as part of their rules of team conduct) for example, there will be no "surprises". This can help establish an atmosphere of trust earlier in the evolutionary process allowing for some interpersonal issues to be put aside so people can focus on team objectives.

Team Growth (Cont.)

FORMSTORMNORM OR PERFORMINDIVIDUAL ISSUESWhat am I doing?Who are these people?Who is in charge?How effective am I?How much influence do I have?I know how I belongI know what I contributeGROUP ISSUESWhat is the charter?Is this the right group?Is this the right structure?How do we work together?What is each member responsible for?What should we be working on?What changes might increase our effectiveness?Give and takeCelebration when it is earnedWHAT YOU WILL SEETesting boundariesEstablishing rulesCautionPolitenessSuperficialityDependency/Counter DependencyFocus on methodsConflict/tensionCop out (quick agreement and silence)PolarizationResistanceWin-LoseIncreased comfortRole shiftingLittle need to discuss methodsIdentification with the groupShared power and informationFunLEADERSHIP STRATEGIESBreak the ice!Get involved and participationElicit examination of differencesModel and support influential, not aggressive communicationProvide positive and critical feedbackCreate celebration

Consensus and BrainstormingConsensus is a group decision-making process that takes each member's ideas and opinions into account and results in a decision that everyone in the group can support. It is an effective method for decision-making because it involves every member's participation. Consensus improves decision quality, equalizes power, causes examination of alternatives, increases commitment to implement the decision and promotes unity among the team members.

Brainstorming is a method used by a group of people to produce a large number of creative ideas in a relatively short period of time.

Consensus (Cont.)How To Reach Consensus:

The leader clearly lists the alternatives the group has to choose from and opens the topic for discussion.

Each member of the group shares her/his ideas opinions and known facts about what each feels the group's decision should be.

When the leader feels that the team is beginning to come to a common agreement, he/she will clarify the position and ask the team if there is a consensus. If everyone agrees that it is the best decision, or feels that it is a decision that they can support, they state their agreement and the leader confirms the decision. If a member has new information or clarification of previous information that may be helpful to the team, time is spent discussing the concern and the process continues until consensus is achieved.

Consensus (Cont.)Key Guidelines For Decision Making By Consensus:

Avoid arguing based on opinion. Strive to focus on facts and objectivity. Don't change your mind to avoid conflict. Change it based on facts and objectivity. Look at differences among the group as positive ways to make change. Coach each other to be honest, open and data based as much as possible.

The following is an exercise to practice the decision-making technique of consensus in a group setting. Pay special attention to member involvement, as this will drive your success.

THE GOALS OF CONSENSUSEliminate a we-they feeling.Focus on the problem, not on personalities, position, or points of view.Reach a win-win decision.Develop team ownership to the decision.

BrainstormingBrainstorming is an effective technique because of two main principles:

Delayed Judgment - People are able to produce more ideas when they delay evaluation of ideas until a later time.

Extended Effort - More original and useful ideas are created when the group continues to generate ideas beyond the initial, more obvious responses by filling an agreed upon time limit or an agreed upon number of ideas. The emphasis in the Generation Phase of a brainstorming session is always on the "quantity" of ideas not the "quality." The quality will come later when ideas are clarified and evaluated.

Brainstorming (Cont.)How To Brainstorm:

The leader selects the method of brainstorming that will be used and informs the team. It will usually be one of two popular types:Structured or Round RobinUnstructured Open Forum or Green Lighting

The leader clearly states the topic and purpose of the brainstorming session. Everyone agrees on the topic or issue. The topic is then written and placed in a prominent, visible position.

A recorder is selected to record all ideas on a flipchart or viewgraph transparency for all to see. Always having the words visible to everyone at the same time avoids misunderstandings and helps to inspire other new ideas.

Brainstorming (Cont.)How To Brainstorm (Cont.):

The leader reviews the following "Rules for Brainstorming" with the group:No discussion, comments or evaluation of any idea during the generation phase.All ideas will be recorded.Quantity not quality is important during the generation phase.State ideas briefly and clearly.Build on recorded ideas.

Generation Phase- Begin the brainstorming session by posting ideas on the flip chart. Make sure all ideas remain visible to the team. Continue until the agreed upon time is used or the agreed upon number of ideas are generated.

Brainstorming (Cont.)How To Brainstorm (Cont.):

Clarification Phase- During the Clarification Phase of Brainstorming, the team goes over the list to make sure that everyone understands all of the items. Do not discuss ideas. Criticism and discussion will take place during the Evaluation Phase and in Multi-voting.

Evaluation Phase- Finally, during the Evaluation Phase, the team reviews the list to eliminate duplications, irrelevancies and issues that are off limits or cannot possibly be addressed or acted upon by this team.

Rules of ConductRules of Conduct:One practical way to reinforce the principle of Respect People is to establish and follow Rules of Conduct during meetings. Your team can either adopt the Rules of Conduct, shown below, or modify them to best suit your team's needs.

Rules Of ConductRespect othersKeep an open mindListen without interruptingShare the loadConstructively criticize ideas, not peopleQuestion and participateAttend all meetingsFollow the P.A.L.

Rules of Conduct (Cont.)With the ground rules established, the team can begin the continuous improvement cycle, PDCA, but meetings must be effectively managed to ensure progress and success.

Rules Of ConductRespect othersKeep an open mindListen without interruptingShare the loadConstructively criticize ideas, not peopleQuestion and participateAttend all meetingsFollow the P.A.L.

Draw and label each axis. Label the horizontal axis with the frequency of measurement (i.e., hour, day, week, month, etc., or by occurrence). Label the vertical axis with the indicator to be displayed. Construct appropriate measurement scales on each axis.Title the line graph with full Indicator Description including Location and Time Period.How to Construct Line Graph Outcome Indicators

GOOD

Hand Box

S O U R C E

What:Proc Mgmt Manual

Who:ABC

When:8 / 28 / 97

Xx

Week Ending

# =

8

2

4

6

Days

Q1 Average Paperless Product Turn Time (from Order Desk Recvd to Order Dlvrd)

Source: RamQuest

Kelli Graf 9/1 to 9/31

2006

Sum of Title Order Turn Time

# of Total Title Orders

9/8/06

9/15/06

Target = 2 Day Refi

9/22/06

9/29/06

10/6/06

10/13/06

Target = 4 Day Resale

Week Ending

% =

100%

25%

50%

75%

%

57.1%

Q3 % of Product Orders Delivered On-Time

Source: XYZ Data Base

Bruce Berger 2/09/07

2006

# of Product Order Delivered On-Time

# of Total Orders Delivered

9/8/06

9/15/06

Target = 90%

Average = 49.8%

X 100

9/22/06

9/29/06

26.4%

60.7%

61.1%

Show indicator formula if the indicator results from a calculation. Draw a good arrow and target. The target is displayed as a dashed line.Fill in the source block and include source of the data, who collected the data and the time period that data was collected from the source.Construct Line Graph Outcome Indicators (Cont.)

GOOD

Hand Box

S O U R C E

What:Proc Mgmt Manual

Who:ABC

When:8 / 28 / 97

Xx

Week Ending

# =

8

2

4

6

Days

Q1 Average Paperless Product Turn Time (from Order Desk Recvd to Order Dlvrd)

Source: RamQuest

Kelli Graf 9/1 to 9/31

2006

Sum of Title Order Turn Time

# of Total Title Orders

9/8/06

9/15/06

Target = 2 Day Refi

9/22/06

9/29/06

10/6/06

10/13/06

Target = 4 Day Resale

Week Ending

% =

100%

25%

50%

75%

%

57.1%

Q3 % of Product Orders Delivered On-Time

Source: XYZ Data Base

Bruce Berger 2/09/07

2006

# of Product Order Delivered On-Time

# of Total Orders Delivered

9/8/06

9/15/06

Target = 90%

Average = 49.8%

X 100

9/22/06

9/29/06

26.4%

60.7%

61.1%

Data Collection SpreadsheetMS Excel is used to construct unique spreadsheets to record data for analysisSpreadsheets segment information into four key sections:Demographics (contain who, what, where or when--information about the process)Milestone Dates (key completion dates/times of steps in the process)Durations (Performance Results calculated from the milestone dates automatically)Outcomes (Performance results of the process)Data collection can be either manual or downloaded from existing systems Can be used for ongoing monitoring of process performance after the project is completed

The ParetoBackground 1897 . . .Italian Economist, Vilfredo Pareto, presented a formula showing that the distribution of income is uneven (i.e., the largest share of the world's income is held by small number of people).1907 . . .U.S. Economist, M. C. Lorenz, expressed a similar theory in a diagram.Later . . .Quality Control expert, Dr. J. M. Juran, applied Lorenz's diagram method to classify problems of quality into "vital How the Pareto Diagram was Born

The ParetoBackgroundThe Pareto is a graphical tool used to rank datasets within a data group. It helps us distinguish between the significant few and the trivial many datasets. It is primarily used to identify the most serious or most frequently occurring dataset(s) and is based on the concept that 80% of the data group problems (or, at least a large percentage) result from 20% of the datasets. Pareto diagrams are to be constructed for only discrete (or countable or attribute) data.

What is a Pareto Diagram?

The ParetoConstructionDraw a box.Display the number of items in the upper left corner as shown below (n=101).Title the PARETO by describing the data that is being stratified. (Hint: answer the Question, What is n?(i.e What are the 101?)Label three (3) sides of the box as follows:Left side: Number of __________ Construct a measurement scale on the left side starting with zero at the bottom and the n (e.g., 101) value at the top. Add additional appropriate scale values on the left side.Bottom side: Label with the name of the What, Where, When or Who data group to be displayed (e.g., County). Draw each bar at the appropriate height descending from the left starting with the biggest bar. Label each bar and display bar height values above each bar. Right side: Label this side Cumulative Percentage and display measurement grids at 0%, 25%, 50%, 75% and 100%.Construct a Cumulative Percentage line: Line starts in lower left corner at zero and connects labeled data points plotted at or directly above the upper right corner of each bar and at a height equal to the cumulative percentage, calculated as follows: % = (bar heights of all bars to left data point) (the total n) * 100 (e.g., (76+20) (101) * 100 = 96%).Add a source box.

The Pareto Example